DELAWARE
POOLED
TRUST
---------
1995
Annual Report
Defensive Equity: Banking and
Insurance Stocks Help Fuel Gains
Page 2
Aggressive Growth:
Solid Results in a Solid Market
Page 4
International Equity:
Up In a Flat Investment Milieu
Page 6
Global Fixed-Income: Making
the Most of a Strong Year for Bonds
Page 8
<PAGE>
Contents
1 Portfolio Returns and Objectives
2 The Defensive Equity Portfolio Review
4 The Aggressive Growth Portfolio Review
6 The International Equity Portfolio Review
8 The Global Fixed-Income Portfolio Review
10 Financial Statements
31 Report of Independent Auditors
Delaware Pooled Trust, Inc.
Delaware Pooled Trust, Inc., based in Philadelphia, is an investment-management
company that offers a series of no-load, open-end equity and fixed-income
portfolios to institutional investors. The unit is part of Delaware Management
Company, a full-service investment-management organization that invests more
than $28 billion on behalf of individuals and institutions. The breadth and
sophistication of Delaware's services enable clients to gain the degree of
administrative convenience and simplicity in investment-management matters they
want; Delaware provides not only equity and fixed-income portfolios but balanced
portfolios and investment-advisory, retirement-plan, and trust services.
The minimum initial investment in a Delaware Pooled-Trust Portfolio is $1
million. Subsequent investments are subject to no minimum-amount requirements.
Delaware Investment Advisers, a Philadelphia-based division of Delaware
Management Company, serves as investment adviser for The Defensive Equity and
The Aggressive Growth Portfolios. Delaware International Advisers Ltd., a
London-based affiliate of Delaware Management Company, serves as investment
adviser for The International Equity and The Global Fixed-Income Portfolios.
Client Services
Delaware provides clients with annual and semiannual reports, monthly account
reports, in-person reviews of account developments, and other communications.
Clients who have questions about their accounts or want to learn the net asset
values of the Delaware Pooled-Trust Portfolios may call a toll-free telephone
number, 1-800-231-8002, during normal business hours. Or they may write to Maria
E. Pollack, Assistant Vice President and Administrative Manager, Delaware Pooled
Trust, Inc., One Commerce Square, Philadelphia, Pennsylvania 19103.
<PAGE>
Portfolio Returns
Periods ending October 31, 1995
<TABLE>
<CAPTION>
One Two Three Since
Annualized Total Return* Year Years Years Inception+
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
Defensive Equity 19.77% 13.72% 17.41% 15.92%
- ----------------------------------------------------------------------------------------------------
Aggressive Growth 19.61 9.55 14.20 8.42
- ----------------------------------------------------------------------------------------------------
International Equity 3.91 7.72 4.77 10.46
- ----------------------------------------------------------------------------------------------------
Global Fixed-Income 17.38 9.46 -- 12.37
- ----------------------------------------------------------------------------------------------------
</TABLE>
* Past performance is not necessarily indicative of future results. The
investment return and share value will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than the original
investment. During this period Delaware Management Company voluntarily agreed
to waive its fee and reimburse the Delaware Pooled-Trust Portfolios for certain
amounts that annual operating expenses (excluding taxes, interest, brokerage
commissions, and extraordinary expenses) exceeded average net assets. In the
absence of that waiver, the portfolios' total returns would have been lower.
+ The inception dates for each Delaware Pooled-Trust Portfolio are as follows:
Defensive Equity, February 3, 1992; Aggressive Growth, February 27, 1992;
International Equity, February 4, 1992; and Global Fixed-Income, November 30,
1992.
Portfolio Objectives
The Defensive Equity Portfolio seeks a maximum long-term total return,
consistent with reasonable risk, through investments in stocks that, at the time
of purchase, have dividend yields above the yield of the Standard & Poor's
500-Stock Index and that offer the potential for capital gains as well.
The Aggressive Growth Portfolio seeks maximum long-term capital growth by
investing in stocks of smaller and medium-sized companies that offer, at the
time of purchase, superior long-term growth potential.
The International Equity Portfolio seeks to achieve maximum long-term total
return by investing primarily in stocks of companies that are organized, have a
majority of their assets, or derive most of their operating income outside the
United States. The portfolio will be invested in stocks that are considered
undervalued, based on fundamental research.
The Global Fixed-Income Portfolio seeks to achieve current income and the
potential for capital appreciation, consistent with the preservation of
investors' principal, by investing primarily in fixed-income securities. Issuers
of these securities will be organized, have a majority of their assets, or
derive most of their operating income in at least three countries, one of which
may be the United States.
1995 ANNUAL REPORT o DELAWARE POOLED TRUST 1
<PAGE>
DEFENSIVE EQUITY: BANKING AND
INSURANCE STOCKS HELP FUEL GAINS
For The Defensive Equity Portfolio, fiscal 1995 was a year of robust performance
in a robust market.
Since 1982, when today's remarkably sustained bull market began, stocks have
recorded a compound annual return of 16.94%--more than six percentage points
above the long-term average. But in the fiscal year ended in October, stocks'
performance proved to be even more impressive: the market advanced 26.44%.
Defensive Equity participated substantially in that advance, with a return of
19.77%.
For much of the fiscal year, the stock market was propelled by continued growth
in earnings, declines in interest rates, and subdued inflation. The market
climaxed the fiscal year with a series of record highs in September before
leveling off in October.
Overweights Enhance Performance
For its part, Defensive Equity, as always, was invested in stocks paying
above-average dividends and priced low in relation to our research assessments
of the companies' earnings prospects. The portfolio's strong performance can be
attributed in part to overweighted positions in financial and insurance shares.
Stocks such as Chase Manhattan, Meridian Bancorp, Bank of Boston, Shawmut
National, Aetna, and CIGNA markedly beat the Standard & Poor's 500-Stock Index;
they profited from improved earnings and balance sheets, stock repurchases, and
an accelerating pace of takeover activity.
Also performing well were these sectors: consumer defensive staples (Philip
Morris and H. J. Heinz in particular), consumer cyclicals (especially Sears,
Eastman Kodak, and Armstrong World), and basic industry (notably, Union Pacific,
Federal Paper Board, Freeport-McMoRan, and Monsanto). We were under-invested in
a sector--technology--whose outperformance rivaled that of banks and insurance
companies; our yield-oriented investment process prohibited us from owning many
technology stocks, which typically pay no or small dividends. Overall, Defensive
Equity was invested in 13 sectors and made money in each sector.
A $10,000 investment in Defensive Equity
would have handily surpassed the same investment
in the overall stock market since 1992
<PAGE>
Defensive Equity: Growth of $10,000*
- -----------------------------------------
Annualized Total Return
Periods ending October 31, 1995
- -----------------------------------------
One Year Since Inception
19.77% 15.92%
- -----------------------------------------
Defensive Equity S&P 500-Stock Index
---------------- -------------------
1/31/92 $10,000.00 $10,000.00
2/29/92 $10,150.00 $10,118.00
3/31/92 $10,110.42 $9,922.72
4/30/92 $10,570.44 $10,223.38
5/31/92 $10,590.52 $10,256.10
6/30/92 $10,540.75 $10,103.28
7/31/92 $10,871.73 $10,529.64
8/31/92 $10,560.80 $10,303.25
9/30/92 $10,730.82 $10,423.80
10/31/92 $10,730.82 $10,473.83
11/30/92 $11,183.66 $10,816.33
12/31/92 $11,344.71 $10,953.70
1/31/93 $11,469.50 $11,055.56
2/28/93 $11,678.25 $11,194.86
3/31/93 $12,242.31 $11,432.20
4/30/93 $12,210.48 $11,166.97
5/31/93 $12,399.74 $11,445.03
6/30/93 $12,515.06 $11,480.51
7/31/93 $12,598.91 $11,447.21
8/31/93 $13,208.69 $11,870.76
9/30/93 $13,219.26 $11,780.54
10/31/93 $13,430.77 $12,036.18
11/30/93 $13,304.52 $11,908.60
12/30/93 $13,549.32 $12,057.45
1/30/94 $14,087.23 $12,475.85
2/28/94 $13,757.59 $12,125.28
3/30/94 $13,307.72 $11,599.04
4/30/94 $13,627.10 $11,757.95
5/30/94 $13,990.95 $11,930.79
6/30/94 $13,803.47 $11,638.48
7/30/94 $14,189.96 $12,033.03
8/30/94 $14,653.98 $12,517.96
9/30/94 $14,366.76 $12,210.02
10/30/94 $14,500.37 $12,494.51
11/30/94 $13,834.80 $12,030.96
12/30/94 $14,011.89 $12,207.82
1/30/95 $14,293.53 $12,533.77
2/28/95 $14,892.42 $13,012.56
3/30/95 $15,409.19 $13,401.63
4/30/95 $15,728.16 $13,802.34
5/30/95 $16,305.39 $14,337.87
6/30/95 $16,470.07 $14,676.25
7/30/95 $16,871.94 $15,173.77
8/30/95 $17,119.96 $15,204.12
9/30/95 $17,758.53 $15,844.21
10/30/95 $17,384.00 $15,798.26
* Past performance is not necessarily indicative of future results. Total return
assumes reinvestment of dividends and capital gains, as well as no reductions
for taxes. The S&P 500-Stock Index is an unmanaged index and a theoretical
measure of stock-market performance rather than an actual available investment.
2 DELAWARE POOLED TRUST o 1995 ANNUAL REPORT
<PAGE>
Late in the year we reduced our energy holdings to a neutral weighting; the
energy industry's earnings are weakening, and oil prices at best figure to be
stuck in a narrow trading range for at least the next six months. We enlarged
our position in telecommunications--specifically, in three Bell operating
companies, BellSouth, Pacific Telesis, and SBC Communications. Their stocks
offer a yield averaging 4.5%, more than two percentage points above the market's
current yield. Also, we expect their earnings growth to accelerate if pending
federal legislation permits them to compete in the long-distance business, a
business they've been shut out of since the breakup of AT&T in 1984.
Outlook: Slow But Steady Economic Growth
Over the near term we anticipate the economy will continue to grow at a slow,
steady pace and avoid a recession. Moreover, we think that today's low
inflation and more stable dollar give the Federal Reserve the leeway to lower
interest rates and keep the economy expanding moderately.
As a result we are maintaining significant weightings in businesses sensitive
to the economic cycle, especially industrial companies like Chrysler,
Warner-Lambert, DuPont, and Cooper Industries that have restructured over the
years to improve their operating efficiency and profits. Although their
earnings growth may be peaking, their levels of capital spending haven't been
commensurate with their increases in profits in the 1990s, so they are awash
in cash; indeed, their free cash flows are at record levels, which can be
used to buy back stock and raise dividends, which in turn could lead to
higher stock multiples. In a market in which no sector is distinctly
underpriced, we believe the restructured industrials offer some of the best
values today. However, if the economy appears to be turning downward severely
at some point, we plan to add more consumer-nondurable stocks as a protective
measure.
One cautionary note is in order: the market has moved upward for more than 60
months without a correction, the longest such period in this century, so a
downturn of 2% or more is overdue. To help protect against a possible
correction, Defensive Equity is broadly diversified, with holdings in any sector
accounting for no more than 15% of the portfolio. Also, Defensive Equity's 3.5%
yield (more than 40% higher than that of the S&P 500 average) should assist in
furnishing a margin of safety.
- -------------------------------------------------------------------------------
Defensive Equity: Portfolio Profile
October 31, 1995
Price/earnings ratio 15.9
Annual dividend yield 3.53%
Three-year beta 0.87
Annual turnover 88%
Total net assets $51.9 million
Asset composition (based on total net assets)
Stocks 89%
Cash equivalents and other assets 11%
Industry composition
18.3% Banking/finance/insurance
13.1% Energy
8.1% Chemicals
7.5% Utilities
7.1% Health care/pharmaceuticals
5.0% Electronics/electrical
4.8% Automobiles/auto parts
4.2% Metals/mining
3.8% Food/beverage/tobacco
3.0% Paper/forest products
3.0% Retail
1.8% Industrial machinery
20.3% Other
Number of holdings 65
Top 10 holdings
1. Amoco
2. DuPont
3. American Home Products
4. Monsanto
5. General Electric
6. Warner-Lambert
7. Chrysler
8. Chase Manhattan
9. Mobil
10. McGraw-Hill
- -------------------------------------------------------------------------------
1995 ANNUAL REPORT o DELAWARE POOLED TRUST 3
<PAGE>
Aggressive Growth:
Solid Results in a Solid Market
Among financial assets, smaller-cap stocks have been overachievers: over the
long term, they have markedly outperformed all other investments in securities.
Although their performance in fiscal 1995 could be considered solid, it fell
short of over-achievement, especially in relation to the soaring gains of many
large-cap stocks. The Russell 2000-Stock Index of small-cap shares climbed
18.33%, a showing that was eclipsed by The Aggressive Growth Portfolio's return
of 19.61%.
Much of the market's surge can be attributed to explosive appreciation in
technology stocks, which registered gains far higher than those of any other
sector. Our own technology investments did well but were outdistanced by the
index's technology sector. Also turning in a strong performance were our
financial-services and transportation holdings, which beat their corresponding
sectors in the index.
Our underperformance in technology shares in particular reflected our
unwillingness to chase stock prices as they rose to heights that we believed
were unjustified by value measures or the companies' long-term earnings
prospects.
During the fiscal year the market was in the fervid grip of momentum investing,
in which investors plunged into certain hot stocks, no matter how lavishly they
were priced. Instead, we sought to maintain our investment discipline and only
buy growth stocks that, in our judgment, were selling at reasonable prices.
We Sell Technology, Buy Services
In seeking to avoid paying too much for growth, we evaluate stocks according to
this standard: we divide the price/earnings ratio of a stock by the company's
recent rolling annual earnings growth rate. Ideally, we look for a ratio of 0.7
or less in buying a stock. By way of contrast, many technology stocks sported
gaudy ratios of 1.5 or more this year. As our technology holdings became richly
priced, we sold them in favor of shares in the consumer and services sectors
that we believed offered better value and return potential. But this was a time
when the market went to an extreme, as markets are sometimes wont to do, and
high-priced technology stocks became even higher-priced, and Aggressive Growth
missed out on those incremental gains.
Aggressive Growth's returns have benefited
from improved results in smaller-cap stocks since
mid-1992
<PAGE>
Aggressive Growth: Growth of $10,000*
- ---------------------------------------------
Annualized Total Return
Periods ending October 31, 1995
- ---------------------------------------------
One Year Since Inception
19.61% 8.42%
- ---------------------------------------------
Russell 2000-Stock
Index Aggressive Growth
------------------ -------------------
1/31/92
2/29/92 $10,000.00 $10,000.00
3/31/92 $9,430.00 $9,661.60
4/30/92 $9,039.60 $9,322.38
5/31/92 $8,929.31 $9,446.37
6/30/92 $8,398.91 $9,002.48
7/31/92 $8,739.07 $9,315.41
8/31/92 $8,579.14 $9,051.97
9/30/92 $8,699.25 $9,260.44
10/31/92 $9,039.39 $9,552.70
11/30/92 $10,049.09 $10,284.24
12/31/92 $10,136.52 $10,642.24
1/31/93 $10,266.27 $11,002.16
2/28/93 $9,474.74 $10,748.45
3/31/93 $9,715.40 $11,097.13
4/30/93 $9,475.43 $10,792.07
5/31/93 $10,016.47 $11,269.40
6/30/93 $10,146.69 $11,339.38
7/31/93 $10,186.26 $11,495.98
8/31/93 $10,546.85 $11,992.38
9/30/93 $11,067.87 $12,330.80
10/31/93 $11,218.39 $12,648.32
11/30/93 $10,988.41 $12,236.24
12/30/93 $11,430.15 $12,654.35
1/30/94 $11,696.47 $13,050.81
2/28/94 $11,767.82 $13,003.44
3/30/94 $11,266.51 $12,318.54
4/30/94 $11,246.23 $12,391.59
5/30/94 $11,001.06 $12,252.19
6/30/94 $10,418.01 $11,838.80
7/30/94 $10,591.99 $12,033.43
8/30/94 $11,308.01 $12,703.69
9/30/94 $11,338.54 $12,660.63
10/30/94 $11,256.90 $12,609.48
11/30/94 $10,878.67 $12,099.93
12/30/94 $10,972.22 $12,423.84
1/30/95 $11,076.46 $12,266.93
2/28/95 $11,412.08 $12,777.60
3/30/95 $11,830.90 $12,996.61
4/30/95 $11,820.25 $13,285.40
5/30/95 $11,830.89 $13,513.77
6/30/95 $12,437.82 $14,214.87
7/30/95 $13,149.26 $15,033.64
8/30/95 $13,347.81 $15,344.69
9/30/95 $13,682.84 $15,618.74
10/30/95 $13,464.00 $14,920.27
* Past performance is not necessarily indicative of future results. Total return
assumes reinvestment of dividends and capital gains, as well as no reductions
for taxes. The Russell 2000-Stock Index is an unmanaged index and a theoretical
measure of stock-market performance rather than an actual available investment.
4 DELAWARE POOLED TRUST o 1995 ANNUAL REPORT
<PAGE>
Throughout the year, the portfolio was invested heavily in the service sectors
(business services, consumer services, financial services, and health care). At
the end of October, our service holdings amounted to more than 50% of the
portfolio. Such a weighting in services reflects, above all, the increasing
service-oriented nature of the economy and changes in consumer-spending
patterns.
Service Holdings Are Varied
In a broadly diversified portfolio of 110 holdings, Aggressive Growth
contains positions in these promising service companies, among others:
/ / in business services, Sanifill and United Waste,
which should benefit from the economies of scale
resulting from continued consolidation in the waste-
management industry;
/ / in consumer services, Daka International and Lone
Star Steakhouse, which have restaurant and food-service businesses with
superior prospects, in our estimation;
/ / in financial services, Ambac, Aames Financial, Advanta, and Olympic
Financial, which have carved solid niches in specialized,
growing market segments; and
/ / in health care, Healthsouth, Quorum Health Group, and United Healthcare,
whose share prices have been unduly pummeled, in our
estimation, out of fear that
proposed legislative changes in the nation's health-care
system will hurt their earnings power.
Altogether, the prospects of Aggressive Growth's investments appear auspicious
to us at this juncture. For one thing, the average price/earnings ratio of both
Aggressive Growth and the various small-cap indexes is about 1.6 times that of
the S&P 500-Stock Index; historically, when small-cap stocks have been selling
at less than two times the S&P 500 multiple, they have afforded good return
potential.
- --------------------------------------------------------------
Aggressive Growth:
Portfolio Profile
October 31, 1995
Price/earnings ratio 26.7
Annual dividend yield 1.07%
Three-year beta 0.86
Annual turnover 64%
Total net assets $29.1 million
Asset composition (based on total net assets)
Stocks 91%
Cash equivalents 9%
Industry composition
22.0% Technology
16.1% Health care
14.3% Consumer nondurables
12.6% Business services
12.4% Consumer services
7.2% Financial services
4.2% Basic industry/capital goods
0.9% Energy
0.8% Consumer durables/cyclicals
0.8% Transportation
8.7% Other
Number of holdings 110
Top 10 holdings
1. Bay Networks
2. Healthsouth
3. First Data
4. General Nutrition
5. Health Management Associates
6. Xilinx
7. CUC International
8. Cabletron Systems
9. Bisys Group
10. Staples
- --------------------------------------------------------------
1995 ANNUAL REPORT o DELAWARE POOLED TRUST 5
<PAGE>
International Equity:
Up In a Flat Investment Milieu
The International Equity Portfolio showed its mettle in foreign markets that in
aggregate were less-than-beneficent this year. The portfolio earned a return of
3.91%, compared with a loss of 0.36% for the Morgan Stanley Capital
International EAFE Index.
Some foreign equity markets did in fact perform well this year, but not as well
as the skyrocketing U.S. market. In local-currency terms, the United Kingdom and
Hong Kong were among the strongest performers. In U.S. dollar terms, because of
differences in foreign-exchange values of the dollar, Belgium and the
Netherlands recorded double-digit returns in Europe, while Australia and New
Zealand stood out in the Asia/Pacific region.
In aggregate, foreign markets, with the exception of Japan, were sparked by
moderate economic growth and rising corporate earnings worldwide. Inflation was
subdued and is likely to continue to be so over the next 12 months, which we
believe bodes well for a sustained--although, in some cases, erratic--economic
recovery around the world.
Underweighting Japan Proves Beneficial
A primary reason for International Equity's outperformance was a significant
underweighting in Japanese stocks. The Japanese market fell about 10% in fiscal
1995, which mired down the index's return; Japan constitutes 41% of the index.
In contrast, our own Japanese holdings amounted to only 14% of the portfolio.
Even though our research led us to the conclusion that the Japanese market as a
whole was too expensively priced, we owned a number of Japanese stocks that
represented good value according to our investment criteria; indeed, our
holdings in undervalued companies such as Canon and Hitachi performed well.
In Japan and elsewhere, as is our custom, we invested primarily in shares with
strong prospective dividend-income streams, as determined by fundamental
research and the dividend-discount model. These investment tools help us
determine the relative valuations of investment opportunities in different
industries and countries.
In fiscal 1995 International Equity increased
its margin of outperformance against the major
foreign markets in aggregate
<PAGE>
International Equity: Growth of $10,000*
- ---------------------------------------------
Annualized Total Return
Periods ending October 31, 1995
- ---------------------------------------------
One Year Since Inception
3.91% 10.46%
- ---------------------------------------------
Morgan Stanley
Capital
International International EAFE
Equity Index
---------------- --------------------
1/31/92 $10,000.00 $10,000.00
2/29/92 $9,890.00 $9,642.07
3/31/92 $9,620.00 $9,005.48
4/30/92 $10,170.27 $9,047.84
5/31/92 $10,540.46 $9,653.45
6/30/92 $10,190.52 $9,195.88
7/31/92 $9,859.33 $8,960.53
8/31/92 $9,789.33 $9,522.54
9/30/92 $9,859.81 $9,334.50
10/31/92 $9,597.54 $8,844.86
11/30/92 $9,608.10 $8,928.09
12/31/92 $9,961.68 $8,974.26
1/31/93 $9,992.56 $8,973.12
2/28/93 $10,251.36 $9,244.22
3/31/93 $11,017.14 $10,050.00
4/30/93 $11,411.55 $11,003.78
5/31/93 $11,401.28 $11,236.18
6/30/93 $11,287.27 $11,060.87
7/31/93 $11,620.25 $11,448.06
8/31/93 $12,151.29 $12,066.06
9/30/93 $12,078.38 $11,794.46
10/31/93 $12,505.96 $12,157.94
11/30/93 $12,078.25 $11,095.21
12/30/93 $12,923.73 $11,896.36
1/30/94 $13,737.93 $12,902.13
2/28/94 $13,463.17 $12,866.40
3/30/94 $13,040.43 $12,312.23
4/30/94 $13,549.00 $12,834.62
5/30/94 $13,379.64 $12,760.94
6/30/94 $13,209.72 $12,941.28
7/30/94 $13,656.21 $13,065.73
8/30/94 $14,198.36 $13,375.06
9/30/94 $13,549.49 $12,953.75
10/30/94 $13,965.46 $13,385.11
11/30/94 $13,378.91 $12,741.82
12/30/94 $13,388.28 $12,821.58
1/30/95 $13,048.22 $12,328.98
2/28/95 $13,202.18 $12,293.60
3/30/95 $13,674.82 $13,060.72
4/30/95 $13,894.99 $13,551.80
5/30/95 $14,015.87 $13,390.53
6/30/95 $13,916.36 $13,156.20
7/30/95 $14,832.06 $13,975.83
8/30/95 $14,633.31 $13,443.35
9/30/95 $14,744.52 $13,705.50
10/30/95 $14,506.00 $13,336.82
* Past performance is not necessarily indicative of future results. Total return
assumes reinvestment of dividends and capital gains, as well as no reductions
for taxes. The Morgan Stanley Capital International EAFE Index is an unmanaged
index and a theoretical measure of foreign-stock-market performance rather than
an actual available investment. International investing poses special risks,
such as significant volatility in individual markets, currency fluctuations, and
political and economic uncertainties.
6 DELAWARE POOLED TRUST o 1995 ANNUAL REPORT
<PAGE>
As a result, we were overweighted in Australia and New Zealand, which offered
good relative values. And during the year, we maintained our overweighting in
the United Kingdom, one of the world's most diverse stock markets, where we
continue to find attractively priced shares. For one thing, British industry
has massively restructured to become a world-class, cost-competitive
manufacturing power, to the point where multinational firms are stepping up
their investment in plants in the U.K. We initiated investments in Indonesia
and the Philippines that in our judgment had fallen to undeservedly low
levels earlier in the year, when Mexico's economic and fiscal problems
tainted all emerging equity markets.
Varied Stocks Perform Well
Some of International Equity's individual holdings that turned in solid gains
included GKN, a diversified British industrial company; Hong Kong Electric, an
electric utility; Telecom Corporation of New Zealand; our Japanese stocks,
which, as noted, outperformed their market; and Nutricia, a Dutch specialty food
company (which was sold after it reached a price that we believed reflected fair
value). Although our holdings in total performed relatively strongly, we note
with some rue that their performance would have been even stronger had we been
invested in the Swiss and Scandinavian markets and two pockets of the U.K.
market, banks and newly privatized utilities, all of which recorded impressive
gains.
Upon occasion we include bonds in the portfolio when our research indicates they
offer return potential equal or superior to stocks. Fiscal 1995 was just such an
occasion. Our position in bonds, which at one point amounted to 7% of the
portfolio, contributed to our outperformance. We later trimmed our bond holdings
because we believe their return potential has diminished after a strong
performance.
Typically, to protect returns, we hedge the currencies that foreign stocks
trade in if our analysis shows they are priced markedly above fair value and
are thus expected to fall. Accordingly, we hedged most of our Japanese
position against a decline in the yen versus the dollar, a decline that did
occur beginning last June. And about one-third of our European holdings were
hedged against prospective weakness in European currencies, particularly the
mark. Those hedges remain largely in place.
- --------------------------------------------------------------
International Equity:
Portfolio Profile
October 31, 1995
Price/earnings ratio 15.1
Annual dividend yield 4.3%
Three-year beta 0.68
Annual turnover 20%
Total net assets $156.5 million
Asset composition (based on total net assets)
Stocks 91%
Bonds 2%
Cash equivalents and other assets 7%
Geographic composition
26.1% United Kingdom
13.6% Japan
9.5% Australia
6.9% Netherlands
6.7% France
6.0% Germany
5.5% Belgium
5.1% Spain
3.6% New Zealand
3.0% Hong Kong
2.0% Canada
1.6% Indonesia
1.3% Malaysia
1.2% Singapore
0.9% Philippines
7.0% Other
Number of holdings 53
Top 10 holdings
1. Electrabel (Belgium)
2. Elf Aquitaine (France)
3. Royal Dutch Petroleum (Netherlands)
4. Powergen plc (U.K.)
5. Amano (Japan)
6. Dalgety plc (U.K.)
7. Pacific Dunlop (Australia)
8. Bass plc (U.K.)
9. Hitachi (Japan)
10. Blue Circle Industries plc (U.K.)
- --------------------------------------------------------------
1995 ANNUAL REPORT o DELAWARE POOLED TRUST 7
<PAGE>
Global Fixed-Income: Making
the Most of a Strong Year for Bonds
The Global Fixed-Income Portfolio turned in an exceptional performance over the
past 12 months: its return of 17.38% beat the Salomon Brothers World Government
Bond Index by more than two percentage points.
It was the best 12-month period for the global bond markets since 1991. The
markets had sold off sharply in the first half of 1994 on fears that the
economic recovery would heighten inflation worldwide; the sell-off raised yields
to uncommonly attractive levels. But as it became clear in fiscal 1995 that the
recovery wouldn't be vibrant enough to rev up inflation, the markets surged. The
combination of price appreciation and high yields produced stellar returns that
in aggregate were more than three percentage points above the market's average
over the past 10 years.
We Focused on the Right Markets
Much of Global Fixed-Income's outperformance was due mainly to selection of
national markets and to currency movements.
By and large, we were in the right markets at the right time--markets that
produced returns ranging from 16% to 27% in dollar-denominated terms, such as
Sweden, Denmark, Australia, Canada, Spain, and France. Conversely, we avoided
the market that was weakest in dollar terms during the fiscal year, Japan.
In addition, the weak dollar early in the year enhanced returns for U.S. holders
of foreign bonds (which are denominated in foreign currencies). The dollar's
early weakness had a greater impact on returns than its subsequent strength did;
returns in dollar terms were generally higher than those in local-currency terms
for the past 12 months.
Since 1992 foreign bonds have outperformed
U.S. bonds, and Global Fixed-Income has done
better than either
<PAGE>
Global Fixed-Income: Growth of $10,000*
- ---------------------------------------------
Annualized Total Return
Periods ending October 31, 1995
- ---------------------------------------------
One Year Since Inception
17.38% 12.37%
- ---------------------------------------------
Salomon World Lehman
Global Government Government/Corporate
Fixed-Income Bond Index Bond Index
------------ ------------- --------------------
1/31/92 $10,000.00 $10,000.00 $10,000.00
12/31/92 $10,110.00 $10,060.00 $10,172.32
1/31/93 $10,259.63 $10,234.04 $10,393.61
2/28/93 $10,539.72 $10,435.65 $10,609.38
3/31/93 $10,749.46 $10,596.36 $10,645.31
4/30/93 $10,902.10 $10,819.94 $10,727.21
5/31/93 $11,067.81 $10,928.14 $10,721.52
6/30/93 $11,098.80 $10,905.19 $10,964.88
7/31/93 $11,059.95 $10,937.91 $11,034.91
8/31/93 $11,426.04 $11,264.95 $11,288.30
9/30/93 $11,541.44 $11,399.00 $11,327.57
10/31/93 $11,733.03 $11,379.62 $11,373.86
11/30/93 $11,690.79 $11,297.69 $11,245.34
12/30/93 $12,047.36 $11,393.81 $11,294.48
1/30/94 $12,306.38 $11,485.57 $11,464.46
2/28/94 $12,114.40 $11,410.57 $11,215.10
3/30/94 $11,927.84 $11,394.18 $10,940.82
4/30/94 $11,987.48 $11,407.28 $10,850.23
5/30/94 $11,929.94 $11,307.15 $10,830.18
6/30/94 $11,630.49 $11,470.27 $10,804.77
7/30/94 $11,660.73 $11,561.65 $11,020.72
8/30/94 $11,818.15 $11,521.60 $11,025.23
9/30/94 $11,829.97 $11,604.98 $10,858.26
10/30/94 $11,976.66 $11,791.03 $10,846.23
11/30/94 $12,086.85 $11,629.01 $10,826.84
12/30/94 $12,196.84 $11,661.05 $10,898.21
1/30/95 $12,184.64 $11,905.72 $11,107.46
2/28/95 $12,308.93 $12,210.47 $11,365.02
3/30/95 $12,358.16 $12,935.76 $11,441.24
4/30/95 $12,607.80 $13,175.35 $11,600.85
5/30/95 $13,033.94 $13,546.00 $12,087.06
6/30/95 $13,058.70 $13,625.73 $12,183.66
7/30/95 $13,335.55 $13,657.76 $12,136.69
8/30/95 $13,612.93 $13,188.44 $12,291.95
9/30/95 $13,853.88 $13,482.99 $12,416.80
10/30/95 $14,058.00 $13,583.48 $12,599.16
* Past performance is not necessarily indicative of future results. Total return
assumes reinvestment of dividends and capital gains, as well as no reductions
for taxes. The Salomon Brothers World Government Bond and Lehman Brothers
Government/Corporate Bond indexes are unmanaged indexes and theoretical measures
of bond-market performance rather than actual available investments.
International investing poses special risks, such as significant volatility in
individual markets, currency fluctuations, and political and economic
uncertainties.
8 DELAWARE POOLED TRUST o 1995 ANNUAL REPORT
<PAGE>
In local-currency terms, returns of individual European markets of 12-15% were
the norm. Worldwide, Sweden, Australia, and Canada set the pace with local
returns of more than 15%. Our decision to be invested in those strong-performing
markets was the result of our fundamental research, the heart of our investment
process. We seek to invest in markets with the best "real" (inflation-adjusted)
returns, based on our assessment of how much of a premium the markets offer over
the anticipated inflation rate.
We're Not Invested in Japan and Germany
We see little reason to dramatically change our current investment strategy in
the near future. We continue to avoid Japanese and German bonds, which we
perceive as offering poor relative value and as vulnerable to declines in the
yen and the mark versus the dollar. We are overweighted in Australia, Canada,
Sweden, Spain, Italy, and New Zealand, all of which we think present good return
potential. For example, Canadian bond yields are more than two percentage points
higher than those of U.S. bonds, yet the inflation rate in Canada is the same
as--or lower than--in the U.S.
Although we hold no U.S. bonds, our exposure to dollar-bloc currencies, through
defensive hedges, is high. We think currency movements will influence returns in
the coming year, although perhaps not to the extent that they did in the last 12
months.
We recently shortened Global Fixed-Income's average duration to a point near
that of the Salomon Brothers benchmark, about five years. We moved to reduce the
interest-rate risk of our holdings because we think global bond markets may be
reaching a plateau. We're mainly concerned about the near-term outlook for the
U.S. bond market; if it turns downward, other markets around the world may
follow suit. So we think now is a prudent time to exercise an extra measure of
caution and protect capital.
- --------------------------------------------------------------
Global Fixed-Income:
Portfolio Profile
October 31, 1995
Average yield to maturity 8.90%
Effective duration 4.7 years
Average credit quality AA1
Annual turnover 77%
Total net assets $99.2 million
Asset composition (based on total net assets)
Government bonds 66%
Corporate bonds 26%
Other bonds 6%
Cash equivalents 2%
Geographic composition
17.9% Canada
16.4% Spain
13.7% Italy
11.3% Australia
10.9% Denmark
9.8% New Zealand
8.1% Sweden
4.4% United Kingdom
1.8% Greece
5.7% Other
Number of holdings 51
Top 10 holdings
1. Kingdom of Denmark, 9.00%, 11/15/00
2. Canadian Government, 8.50%, 03/01/00
3. Swedish Government, 13.00%, 06/15/01
4. New Zealand Government, 6.50%, 02/15/00
5. Spanish Government, 12.25%, 03/25/00
6. Queensland Treasury, 8.00%, 05/14/03
(Australia)
7. Bayerische Landesbank, 10.75%, 03/01/03
(Italy)
8. Eurofima, 7.70%, 02/02/04 (Italy)
9. ABB International Finance, 10.00%,
08/06/03 (Italy)
10. Spanish Government, 10.50%, 10/30/03
- --------------------------------------------------------------
1995 ANNUAL REPORT o DELAWARE POOLED TRUST 9
<PAGE>
Delaware Pooled Trust, Inc.: The Defensive Equity Portfolio
Statement of Net Assets
October 31, 1995
Number Market
of Shares Value
- ---------------------------------------------------------------------------
COMMON STOCK: 87.79%
- ---------------------------------------------------------------------------
Aerospace and Defense: 1.39%
- ---------------------------------------------------------------------------
General Dynamics 13,000 $ 719,875
---------
719,875
---------
- ---------------------------------------------------------------------------
Automobiles and Auto Parts: 4.81%
- ---------------------------------------------------------------------------
Chrysler 22,000 1,135,750
Dana 27,000 691,875
Genuine Parts 17,000 673,625
---------
2,501,250
---------
- ---------------------------------------------------------------------------
Banking, Finance, and Insurance: 18.32%
- ---------------------------------------------------------------------------
Aetna Life & Casualty 10,300 724,863
American General 14,600 479,975
AON 20,000 822,500
Bank of Boston 17,800 792,100
Beneficial Corporation 9,400 460,600
Boatmen's Bancshares 9,300 352,819
Chase Manhattan 19,200 1,094,400
CIGNA 7,000 693,875
CoreStates Financial 17,700 643,838
Fleet Financial Group 10,000 387,500
Marsh & McLennan 8,919 730,243
Mellon Bank 15,400 771,925
Meridian Bancorp 15,100 647,413
St. Paul 10,900 553,175
U.S. Bancorp 12,100 359,219
---------
9,514,445
---------
- ---------------------------------------------------------------------------
Buildings and Materials: 1.44%
- ---------------------------------------------------------------------------
Ahmanson (H.F.) & Co. 30,000 750,000
---------
750,000
---------
- ---------------------------------------------------------------------------
Cable, Media, and Publishing: 1.70%
- ---------------------------------------------------------------------------
McGraw-Hill 10,800 884,250
---------
884,250
---------
- ---------------------------------------------------------------------------
Chemicals: 8.09%
- ---------------------------------------------------------------------------
Dow Chemical 11,003 755,081
DuPont (EI) deNemours 23,739 1,480,720
Imperial Chemical Industries ADR 13,500 654,750
Monsanto 12,500 1,309,375
---------
4,199,926
---------
10 DELAWARE POOLED TRUST o 1995 ANNUAL REPORT
<PAGE>
Number Market
of Shares Value
- ---------------------------------------------------------------------------
Electronics and Electrical: 5.03%
- ---------------------------------------------------------------------------
General Electric 18,800 $ 1,189,100
Pitney Bowes 19,000 828,875
Thomas & Betts 9,200 594,550
-----------
2,612,525
-----------
- ---------------------------------------------------------------------------
Energy: 13.12%
- ---------------------------------------------------------------------------
Amoco 26,400 1,686,300
Atlantic Richfield 8,082 862,754
Dresser Industries 40,000 830,000
Imperial Oil Limited 4,700 171,550
Mobil 10,700 1,078,025
Occidental Petroleum 29,300 629,950
Tenneco 12,280 538,785
USX-Marathon Group 21,600 383,400
Williams Companies 16,400 633,450
-----------
6,814,214
-----------
- ---------------------------------------------------------------------------
Food, Beverage, and Tobacco: 3.82%
- ---------------------------------------------------------------------------
General Mills 13,200 757,350
Heinz (H.J.) 14,500 674,250
RJR Nabisco Holdings 17,940 551,655
-----------
1,983,255
-----------
- ---------------------------------------------------------------------------
Health Care and Pharmaceuticals: 7.09%
- ---------------------------------------------------------------------------
American Home Products 15,137 1,341,517
Bristol-Myers Squibb 7,300 556,625
Glaxo Wellcome plc ADR 24,000 651,000
Warner-Lambert 13,350 1,136,419
----------
3,685,561
----------
- ---------------------------------------------------------------------------
Industrial Machinery: 1.79%
- ---------------------------------------------------------------------------
Cooper Industries 15,100 509,625
McDermott International 26,400 419,100
-----------
928,725
-----------
- ---------------------------------------------------------------------------
Metals and Mining: 4.21%
- ---------------------------------------------------------------------------
Freeport-McMoRan
Copper & Gold Class B 26,200 596,050
Minnesota Mining &
Manufacturing 14,312 813,995
Union Pacific 11,900 777,963
-----------
2,188,008
-----------
<PAGE>
Number Market
of Shares Value
- ---------------------------------------------------------------------------
Paper and Forest Products: 2.97%
- ---------------------------------------------------------------------------
Kimberly-Clark 11,300 $ 820,663
Union Camp 14,200 722,425
-----------
1,543,088
-----------
- ---------------------------------------------------------------------------
Retail: 3.04%
- ---------------------------------------------------------------------------
Penney (J.C.) 20,200 850,925
Sears, Roebuck 21,450 729,300
-----------
1,580,225
-----------
- ---------------------------------------------------------------------------
Transportation and Shipping: 0.78%
- ---------------------------------------------------------------------------
Illinois Central 10,600 405,450
-----------
405,450
-----------
- ---------------------------------------------------------------------------
Utilities: 7.52%
- ---------------------------------------------------------------------------
ALLTEL 25,282 774,261
BellSouth 10,900 833,850
Frontier 32,000 864,000
Houston Industries 300 13,913
Pacific Telesis Group 2,300 69,863
*Royal PTT Nederland
NV-SP ADR 18,300 640,500
SBC Communications 12,700 709,613
-----------
3,906,000
-----------
- ---------------------------------------------------------------------------
Miscellaneous: 2.67%
- ---------------------------------------------------------------------------
Block (H&R) 14,900 614,625
Hanson plc ADR 49,900 773,450
-----------
1,388,075
-----------
- ---------------------------------------------------------------------------
Total Common Stock
(cost $41,768,897) 45,604,872
===========================================================================
- ---------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCK: 0.76%
- ---------------------------------------------------------------------------
American Express 6.25% FDC 7,200 395,100
- ---------------------------------------------------------------------------
Total Convertible Preferred Stock
(cost $302,995) 395,100
===========================================================================
<PAGE>
Principal Market
Amount Value
- ---------------------------------------------------------------------------
Repurchase agreements: 10.54%
- ---------------------------------------------------------------------------
With Paine Webber 5.83% 11/1/95
(dated 10/31/95, collateralized by
$5,501,000 U.S. Treasury Notes
6.125% due 9/30/00, market value
$5,591,054) $5,474,000 $ 5,474,000
- ---------------------------------------------------------------------------
Total Repurchase Agreements
(cost $5,474,000) 5,474,000
===========================================================================
- ---------------------------------------------------------------------------
Total market value of securities: 99.09%
(cost $47,545,892) 51,473,972
===========================================================================
- ---------------------------------------------------------------------------
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES: 0.91% 473,125
===========================================================================
- ---------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
3,544,072 SHARES ($.01 PAR VALUE)
OUTSTANDING; EQUIVALENT
TO $14.66 PER SHARE: 100.00% $51,947,097
===========================================================================
- ---------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 1995:
- ---------------------------------------------------------------------------
Common stock, $.01 par value,
500,000,000 shares authorized
to the Fund with 50,000,000
shares allocated to this Portfolio $43,009,818
Accumulated undistributed income:
Net investment income 864,194
Net realized gain on investments 4,145,005
Net unrealized appreciation
of investments 3,928,080
- ---------------------------------------------------------------------------
Total Net Assets $51,947,097
===========================================================================
* Non-income producing security for the year ended October 31, 1995.
See accompanying notes
1995 ANNUAL REPORT o DELAWARE POOLED TRUST 11
<PAGE>
Delaware Pooled Trust, Inc.: The Aggressive Growth Portfolio
Statement of Net Assets
October 31, 1995
Number Market
of Shares Value
- ---------------------------------------------------------------------------
COMMON STOCK: 91.36%
- ---------------------------------------------------------------------------
Basic Industry/Capital Goods: 4.20%
- ---------------------------------------------------------------------------
*Smith International 13,400 $ 214,400
TriMas 18,600 385,950
*UCAR International 6,900 196,650
Wabash National 4,400 111,650
*Wolverine Tube 8,800 313,500
-----------
1,222,150
-----------
- ---------------------------------------------------------------------------
Business Services: 12.57%
- ---------------------------------------------------------------------------
Distributors: 0.67%
Intelligent Electronics 21,700 168,175
*Peak Technologies Group 1,000 25,500
-----------
193,675
-----------
Environmental: 2.32%
Dames & Moore 22,400 305,200
*Sanifill 6,000 189,000
*United Waste Systems 4,600 181,700
-----------
675,900
-----------
Media and Publishing: 2.63%
*International Family Entertainment
Class B 13,400 247,900
*Multimedia 9,900 438,694
Reynolds & Reynolds ClassA 2,200 78,375
-----------
764,969
-----------
Other Business Services: 6.95%
*ADT Limited 27,100 379,400
*APAC Teleservices 600 15,150
*Bisys Group 19,100 532,413
*Compucom Systems 18,800 125,755
*Corporate Express 4,600 119,600
*Gartner Group ClassA 7,200 314,100
*Interim Services 7,400 218,300
*Isomedix 14,700 198,450
Manpower 4,400 119,350
-----------
2,022,518
-----------
3,657,062
-----------
12 DELAWARE POOLED TRUST o 1995 ANNUAL REPORT
<PAGE>
Number Market
of Shares Value
- ---------------------------------------------------------------------------
Consumer Durables/Cyclicals: 0.77%
- ---------------------------------------------------------------------------
Harley-Davidson 4,800 $ 128,400
Polaris Industries 3,450 96,600
----------
225,000
----------
- ---------------------------------------------------------------------------
Consumer Nondurables: 14.33%
- ---------------------------------------------------------------------------
Retail: 8.30%
*CompUSA 1,100 42,075
*Fabri-Centers of America Class A 800 11,900
*Fabri-Centers of America Class B 800 9,300
*General Nutrition Companies 28,800 712,800
*Gymboree 13,900 315,356
*Kohl's 7,000 317,625
*Musicland Stores 21,500 139,750
*Neostar Retail Group 5,000 76,250
*Office Depot 2,300 65,838
*Staples 18,975 507,581
Talbots 5,200 126,100
*Value City Department Stores 14,800 88,800
----------
2,413,375
----------
Textiles and Apparel: 3.38%
*Cyrk 7,100 77,188
*Gucci Group 13,000 390,000
*Tommy Hilfiger 11,000 419,375
Warnaco Group Class A 4,200 97,650
----------
984,213
----------
Other Consumer Nondurables: 2.65%
Callaway Golf 25,800 422,475
*Canandaigua Wine Class A 6,100 292,800
*Nature's Bounty 10,800 54,338
769,613
----------
4,167,201
----------
<PAGE>
Number Market
of Shares Value
- ---------------------------------------------------------------------------
Consumer Services: 12.40%
- ---------------------------------------------------------------------------
Entertainment and Leisure: 6.93%
Circus Circus Enterprises 3,850 $ 102,506
*HFS 6,400 392,000
La Quinta Inns 3,400 87,550
*MGM Grand 1,800 42,975
*Mirage Resorts 13,000 425,750
*Station Casinos 15,400 198,275
TCA Cable TV 2,100 62,606
*Viacom Class A 1,688 83,978
*Viacom Class B 5,567 278,362
*WMS Industries 17,400 341,475
-----------
2,015,477
-----------
Restaurants: 2.48%
*Bertucci's 4,000 24,000
*Daka International 6,700 204,350
*Foodmaker 20,000 120,000
*Lone Star Steakhouse/Saloon 6,800 262,650
Sbarro 5,300 110,638
-----------
721,638
-----------
Other Consumer Services: 2.99%
Barefoot 18,300 218,456
*CUC International 15,900 550,538
Cash America International 19,800 101,475
-----------
870,469
-----------
3,607,584
-----------
- ---------------------------------------------------------------------------
Energy: 0.94%
- ---------------------------------------------------------------------------
*AES 13,848 274,363
-----------
274,363
-----------
- ---------------------------------------------------------------------------
Financial: 7.17%
- ---------------------------------------------------------------------------
Insurance: 4.64%
Ambac 7,200 303,300
Blanch (E.W.)Holdings 17,700 340,725
CMAC Investment 6,900 327,750
MBIA 5,400 375,975
-----------
1,347,750
-----------
Other Financial: 2.53%
Aames Financial 4,500 113,344
Advanta Class B 5,200 187,200
*Olympic Financial Limited 9,300 168,563
SEI 9,500 204,250
*WFS Financial 3,800 63,650
-----------
737,007
-----------
2,084,757
-----------
<PAGE>
Number Market
of Shares Value
- ---------------------------------------------------------------------------
Health Care: 16.14%
- ---------------------------------------------------------------------------
Pharmaceuticals: 0.95%
*Dura Pharmaceuticals 1,100 $ 32,450
*Genzyme-General Division 4,200 244,125
----------
276,575
----------
Services: 15.19%
*Apria Healthcare Group 13,800 299,288
Columbia/HCA Healthcare 9,757 479,313
*Community Health Systems 2,400 76,200
*HCIA 5,200 139,100
*Healthsouth 28,700 749,788
*Health Management Class A 29,325 630,488
*Oxford Health Plans 3,900 306,150
*Physician Reliance Network 4,400 146,300
*Quantum Health Resources 19,200 201,600
*Quorum Health Group 15,300 329,906
*Summit Care 1,500 31,313
United Healthcare 8,000 425,000
*Value Health 15,864 362,889
*Vivra 7,300 240,900
----------
4,418,235
----------
4,694,810
----------
- ---------------------------------------------------------------------------
Technology: 22.04%
- ---------------------------------------------------------------------------
Communications: 5.33%
*Bay Networks 12,800 849,600
*Cabletron Systems 7,000 550,375
InterVoice 8,300 151,475
----------
1,551,450
----------
Hardware: 7.83%
*Altera 6,200 375,488
*Analog Devices 4,400 158,950
Dallas Semiconductor 8,800 187,000
*Diamond Multimedia Systems 4,400 130,900
*In Focus Systems 1,600 52,600
*Microchip Technology 8,500 336,813
*StorMedia 2,100 95,550
*Trimble Navigation Limited 7,500 149,063
*Xilinx 12,600 580,388
*Zilog 5,900 209,450
----------
2,276,202
----------
1995 ANNUAL REPORT o DELAWARE POOLED TRUST 13
<PAGE>
Number Market
of Shares Value
- ---------------------------------------------------------------------------
Software: 8.88%
Adobe Systems 6,500 $ 371,313
*DST Systems 3,200 67,200
First Data 10,784 713,100
HBO & Co. 3,094 218,514
*Informix 15,400 449,488
*NetManage 11,500 235,031
*Novell 17,700 293,156
*Seer Technologies 500 7,350
Shared Medical Systems 5,900 228,625
-----------
2,583,777
-----------
6,411,429
-----------
- ---------------------------------------------------------------------------
Transportation: 0.80%
- ---------------------------------------------------------------------------
Illinois Central 6,100 233,325
-----------
233,325
-----------
- ---------------------------------------------------------------------------
Total Common Stock
(cost $20,894,584) 26,577,681
===========================================================================
Principal
Amount
- ---------------------------------------------------------------------------
Short-term investments: 6.84%
- ---------------------------------------------------------------------------
Federal National Mortgage Association
Discount Note 12/05/95 $2,000,000 1,989,517
-----------
- ---------------------------------------------------------------------------
Total Short-Term Investments
(cost $1,989,517) 1,989,517
===========================================================================
- ---------------------------------------------------------------------------
Repurchase agreements: 3.00%
- ---------------------------------------------------------------------------
With Paine Webber 5.83%, 11/01/95
(dated 10/31/95, collateralized by
$878,000 U.S. Treasury Notes
6.125% due 9/30/00, market value
$892,689) 874,000 874,000
----------
- ---------------------------------------------------------------------------
Total Repurchase Agreements
(cost $874,000) 874,000
===========================================================================
14 DELAWARE POOLED TRUST o 1995 ANNUAL REPORT
<PAGE>
- ---------------------------------------------------------------------------
Total market value of securities: 101.20%
(Cost $23,758,101) $29,441,198
===========================================================================
- ---------------------------------------------------------------------------
Liabilities net of receivables and
other assets: (1.20%) (349,314)
===========================================================================
- ---------------------------------------------------------------------------
Net assets applicable to
2,261,640 shares ($.01 par value)
outstanding equivalent
to $12.86 per share: 100.00% $29,091,884
===========================================================================
- ---------------------------------------------------------------------------
Components of net assets
at October 31, 1995:
- ---------------------------------------------------------------------------
Common stock $.01 par value,
500,000,000 shares authorized
to the Fund with 50,000,000
shares allocated to this Portfolio $22,182,469
Accumulated undistributed income:
Net investment income 81,647
Net realized gain on investments 1,144,671
Net unrealized appreciation of
investments 5,683,097
- ---------------------------------------------------------------------------
Total Net Assets $29,091,884
===========================================================================
* Non-income producing security for the year ended October 31, 1995.
See accompanying notes
<PAGE>
Delaware Pooled Trust, Inc.: The International Equity Portfolio
Statement of Net Assets
October 31, 1995
Market
Number Value
of Shares (U.S.$)
- ---------------------------------------------------------------------------
COMMON STOCK: 90.71%
- ---------------------------------------------------------------------------
Australia: 9.53%
- ---------------------------------------------------------------------------
Brambles Industries 311,000 $ 3,302,320
CSR Limited 1,171,003 3,732,032
National Australia Bank 412,147 3,523,642
National Foods 287,794 321,790
Pacific Dunlop 1,668,904 4,036,750
-----------
14,916,534
-----------
- ---------------------------------------------------------------------------
Belgium: 5.45%
- ---------------------------------------------------------------------------
Cimenteries CBR Cementbedrij 1,650 671,935
*Cimenteries CBR Cementbedrij
Put Warrants 1,650 7,517
Electrabel 27,105 6,070,936
G.I.B. Holdings 45,000 1,758,007
G.I.B. Holdings-VVPR 372 14,379
------------
8,522,774
------------
- ---------------------------------------------------------------------------
Canada: 1.97%
- ---------------------------------------------------------------------------
BC Telecom 173,000 3,086,989
------------
3,086,989
------------
- ---------------------------------------------------------------------------
France: 6.71%
- ---------------------------------------------------------------------------
Alcatel Alsthom 34,911 2,979,589
Campagnie de Saint Gobain 26,066 3,105,822
Elf Aquitaine 64,752 4,406,878
------------
10,492,289
------------
- ---------------------------------------------------------------------------
Germany: 6.03%
- ---------------------------------------------------------------------------
Bayer AG 12,200 3,222,609
Continental AG 216,550 3,059,962
Siemens AG 6,030 3,147,092
------------
9,429,663
------------
- ---------------------------------------------------------------------------
Hong Kong: 2.99%
- ---------------------------------------------------------------------------
Hong Kong Electric Holdings 560,000 1,904,860
Wharf Holdings 821,000 2,771,424
------------
4,676,284
------------
- ---------------------------------------------------------------------------
Indonesia: 1.59%
- ---------------------------------------------------------------------------
PT Bank Dagang Nasional 1,916,875 1,709,234
PT Indofood Sukses Makmur 169,500 783,685
------------
2,492,919
------------
<PAGE>
Market
Number Value
of Shares (U.S.$)
- ---------------------------------------------------------------------------
Japan: 13.63%
- ---------------------------------------------------------------------------
Amano 348,000 $ 4,220,451
Canon 194,000 3,320,456
Chiyoda Fire and Marine
Insurance 340,000 1,812,314
Eisai 195,000 3,299,428
Hitachi 373,000 3,830,505
Kinki Coca-Cola Bottling 75,000 902,245
Matsushita Electric 226,000 3,205,047
Sanoh Industrial 90,000 734,999
-----------
21,325,445
-----------
- ---------------------------------------------------------------------------
Malaysia: 1.34%
- ---------------------------------------------------------------------------
Sime Darby Berhad 840,000 2,097,605
-----------
2,097,605
-----------
- ---------------------------------------------------------------------------
Netherlands: 6.86%
- ---------------------------------------------------------------------------
Elsevier 210,000 2,711,221
Koninklijke Van Ommeren 123,000 3,666,413
Royal Dutch Petroleum 35,175 4,360,979
-----------
10,738,613
-----------
- ---------------------------------------------------------------------------
New Zealand: 3.59%
- ---------------------------------------------------------------------------
Carter Holt Harvey 1,196,400 2,858,536
Telecom Corp. of New Zealand 666,000 2,764,926
-----------
5,623,462
-----------
- ---------------------------------------------------------------------------
Philippines: 0.85%
- ---------------------------------------------------------------------------
Philippine Long Distance Telephone
Company ADR 23,800 1,335,775
-----------
1,335,775
-----------
- ---------------------------------------------------------------------------
Singapore: 1.21%
- ---------------------------------------------------------------------------
Jardine Matheson Holdings 308,800 1,883,680
-----------
1,883,680
-----------
- ---------------------------------------------------------------------------
Spain: 2.82%
- ---------------------------------------------------------------------------
Acerinox SA 4,822 507,247
Banco Central Hispanoamer SA 19,827 410,326
Telefonica de Espana 277,350 3,493,816
-----------
4,411,389
-----------
1995 ANNUAL REPORT o DELAWARE POOLED TRUST 15
<PAGE>
Market
Number Value
of Shares (U.S.$)
- ---------------------------------------------------------------------------
- ---------------------------------------------------------------------------
United Kingdom: 26.14%
- ---------------------------------------------------------------------------
Bass plc 384,000 $ 4,016,914
Blue Circle Industries plc 830,000 3,810,824
British Airways plc 485,000 3,481,777
British Gas plc 961,300 3,655,306
Cable & Wireless plc 536,500 3,504,434
Dalgety plc 609,375 4,086,216
Dawson International plc 279,250 524,310
GKN plc 235,750 3,001,739
Great Universal Stores plc 405,300 3,651,409
Powergen plc 485,000 4,346,481
RTZ plc 218,000 3,009,624
Sears plc 2,377,650 3,807,691
-----------
40,896,725
-----------
- ---------------------------------------------------------------------------
Total Common Stock
(cost $137,452,585) 141,930,146
===========================================================================
Principal
Amount**
- ---------------------------------------------------------------------------
BONDS: 2.23%
- ---------------------------------------------------------------------------
Spain: 2.23%
- ---------------------------------------------------------------------------
Spanish Government,
8.20%, 02/28/09 $527,000,000 3,493,935
- ---------------------------------------------------------------------------
Total Bonds
(cost $3,387,893) 3,493,935
===========================================================================
- ---------------------------------------------------------------------------
REPURCHASE AGREEMENT: 5.23%
- ---------------------------------------------------------------------------
With Paine Webber 5.83%
11/1/95 (dated 10/31/95,
collateralized by $8,220,000
U.S. Treasury Notes 6.125%
due 9/30/2000, market value
$8,354,918) $8,180,000 8,180,000
- ---------------------------------------------------------------------------
Total Repurchase Agreement
(cost $8,180,000) 8,180,000
===========================================================================
16 DELAWARE POOLED TRUST o 1995 ANNUAL REPORT
<PAGE>
Market
Principal Value
Amount* (U.S.$)
- ---------------------------------------------------------------------------
TOTAL MARKET VALUE OF
SECURITIES: 98.17%
(COST $149,020,478) $153,604,081
===========================================================================
- ---------------------------------------------------------------------------
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES: 1.83% 2,863,031
===========================================================================
- ---------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
11,923,447 SHARES ($.01 PAR VALUE)
OUTSTANDING; EQUIVALENT TO
$13.12 PER SHARE: 100.00% $156,467,112
===========================================================================
- ---------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 1995:
- ---------------------------------------------------------------------------
Common stock, $.01 par value,
500,000,000 shares authorized
to the Fund with 50,000,000
shares allocated to this Portfolio $145,932,222
Accumulated undistributed income:
Net investment income 3,284,687
Net realized gain on investments and
foreign currencies 2,561,013
Net unrealized appreciation of investments
and foreign currencies 4,689,190
- ---------------------------------------------------------------------------
Total Net Assets $156,467,112
===========================================================================
* Non-income producing security for the year ended October 31, 1995.
** Principal amount is stated in the currency in which each security is
denominated.
See accompanying notes
<PAGE>
Delaware Pooled Trust, Inc.: The Global Fixed Income Portfolio
Statement of Net Assets
October 31, 1995
Market
Principal Value
Amount* (U.S.$)
- ---------------------------------------------------------------------------
BONDS: 94.14%
- ---------------------------------------------------------------------------
Australia: 11.30%
- ---------------------------------------------------------------------------
Australian Government,
9.000%, 09/15/04 2,000,000 $ 1,545,067
Bank Austria AG,
10.875%, 11/17/04 2,000,000 1,665,779
Commerzbank,
10.500%, 01/19/00 2,000,000 1,622,994
DSL Finance NV Amsterdam,
10.250%, 04/07/00 500,000 403,609
Queensland Treasury-Global,
8.000%, 05/14/03 4,500,000 3,264,117
South Australia Government
Finance, 7.250%, 09/22/03 2,000,000 1,377,691
Treasury Corp. Victoria,
7.125%, 11/29/05 2,000,000 1,327,299
-----------
11,206,556
-----------
- ---------------------------------------------------------------------------
Canada: 17.93%
- ---------------------------------------------------------------------------
BP America, 10.875%,
08/01/01 300,000 249,257
BP America, 9.500%,
06/24/02 1,000,000 787,639
Banque National de Paris,
8.750%, 07/29/02 1,000,000 763,011
Banque National de Paris,
7.750%, 04/08/03 1,000,000 720,260
Bell Canada,
10.875%, 10/11/04 700,000 596,236
Deutsche Bank,
10.250%, 11/30/99 400,000 323,420
Electric Power Development,
10.375%, 09/27/01 700,000 576,394
Government of Canada,
8.250%, 03/01/97 3,000,000 2,288,922
Government of Canada,
8.500%, 03/01/00 9,000,000 7,064,832
Government of Canada,
9.000%, 12/01/04 1,000,000 816,134
KFW International Finance,
9.500%, 05/13/02 1,500,000 1,196,794
Nippon Telephone & Telegraph,
10.250%, 10/19/99 800,000 644,238
Ontario Hydro,
10.000%, 03/19/01 650,000 529,484
Rabobank Nederland,
9.750%, 08/05/04 1,500,000 1,218,401
-----------
17,775,022
-----------
<PAGE>
Market
Principal Value
Amount* (U.S.$)
- ---------------------------------------------------------------------------
- ---------------------------------------------------------------------------
Denmark: 10.88%
- ---------------------------------------------------------------------------
Danish Government,
8.000%, 05/15/03 10,000,000 $ 1,870,484
Kingdom of Denmark,
9.000%, 11/15/00 45,000,000 8,918,504
-----------
10,788,988
-----------
- ---------------------------------------------------------------------------
Greece: 1.78%
- ---------------------------------------------------------------------------
International Bank of
Reconstruction and
Development,
15.500%, 04/14/97 325,000,000 1,427,497
International Finance,
15.250%, 05/11/99 75,000,000 332,656
-----------
1,760,153
-----------
- ---------------------------------------------------------------------------
Italy: 13.56%
- ---------------------------------------------------------------------------
ABB International Finance
BV, 10.000%, 08/06/03 5,000,000,000 2,912,994
Bayerische Landesbank
Girozentrale, 10.750%,
03/01/03 5,000,000,000 3,046,294
Buoni Poliennali Del Tes,
9.500%, 12/01/99 4,000,000,000 2,374,180
Eurofima, 7.700%,
02/02/04 5,800,000,000 2,949,298
Nordic Investment Bank,
11.300%, 03/04/02 1,500,000,000 943,293
Nordic Investment Bank,
10.800%, 05/24/03 2,000,000,000 1,223,222
-----------
13,449,281
-----------
- ---------------------------------------------------------------------------
New Zealand: 9.77%
- ---------------------------------------------------------------------------
New Zealand Government,
6.500%, 02/15/00 8,000,000 5,153,983
New Zealand Government,
8.000%, 04/15/04 3,000,000 2,081,447
New Zealand Government,
8.000%, 11/15/06 3,500,000 2,456,307
-----------
9,691,737
-----------
1995 ANNUAL REPORT o DELAWARE POOLED TRUST 17
<PAGE>
Market
Number Value
of Shares (U.S.$)
- ---------------------------------------------------------------------------
Spain: 16.38%
- ---------------------------------------------------------------------------
Bayerische Landesanstalt,
7.800%, 02/11/04 200,000,000 $ 1,376,278
DSL Finance NV Amsterdam,
7.875%, 02/10/04 200,000,000 1,384,458
European Investment Bank,
13.900%, 03/22/00 120,000,000 1,096,933
Spanish Government,
12.250%, 03/25/00 500,000,000 4,322,290
Spanish Government,
10.300%, 06/15/02 300,000,000 2,388,466
Spanish Government,
10.500%, 10/30/03 350,000,000 2,812,311
Spanish Government,
8.200%, 02/28/09 230,000,000 1,524,867
World Bank,
10.625%, 09/08/98 160,000,000 1,333,333
-----------
16,238,936
-----------
- ---------------------------------------------------------------------------
Sweden: 8.10%
- ---------------------------------------------------------------------------
Nordic Investment Bank,
10.250%, 01/07/99 8,000,000 1,244,807
Swedish Government,
13.000%, 06/15/01 31,000,000 5,466,855
Swedish Government,
9.000%, 04/20/09 9,000,000 1,321,836
-----------
8,033,498
-----------
- ---------------------------------------------------------------------------
United Kingdom: 4.44%
- ---------------------------------------------------------------------------
ARGYLL Group plc,
8.125%, 03/10/00 1,000,000 1,584,688
Mutual Group,
7.250%, 01/12/04 200,000 281,240
Nationwide Anglia,
13.500%, 11/21/00 200,000 380,641
Redland Funding,
10.875%, 11/27/01 200,000 354,410
Woolwich Building SOC,
11.625%, 12/18/01 1,000,000 1,803,605
-----------
4,404,584
-----------
- ---------------------------------------------------------------------------
Total Bonds
(cost $88,518,540 ) 93,348,755
===========================================================================
18 DELAWARE POOLED TRUST o 1995 ANNUAL REPORT
<PAGE>
Market
Principal Value
Amount* (U.S.$)
- ---------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 2.45%
- ---------------------------------------------------------------------------
With Paine Webber 5.83% 11/1/95
(dated 10/31/95, collateralized by
$2,440,000 U.S. Treasury Notes
6.125% due 9/30/2000, market value
$2,479,919) $2,428,000 $ 2,428,000
- ---------------------------------------------------------------------------
Total Repurchase Agreements
(cost $2,428,000) 2,428,000
===========================================================================
- ---------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 96.59%
(COST $90,946,540) $95,776,755
===========================================================================
- ---------------------------------------------------------------------------
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES: 3.41% 3,383,914
===========================================================================
- ---------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
8,983,144 SHARES ($.01 PAR VALUE)
OUTSTANDING; EQUIVALENT TO
$11.04 PER SHARE: 100.00% $99,160,669
===========================================================================
- ---------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 1995:
- ---------------------------------------------------------------------------
Common stock, $.01 par value,
500,000,000 shares authorized
to the Fund with 50,000,000
shares allocated to this Portfolio $91,004,261
Accumulated undistributed income:
Net investment income 3,979,923
Net realized loss on investments and
foreign currencies (865,545)
Net unrealized appreciation of investments
and foreign currencies 5,042,030
- ---------------------------------------------------------------------------
Total Net Assets $99,160,669
===========================================================================
* Principal amount is stated in the currency of the country in which each
security is denominated.
See accompanying notes
<PAGE>
Delaware Pooled Trust, Inc.
Statements of Assets and Liabilities
Year Ended October 31, 1995
<TABLE>
<CAPTION>
The The The The Global
Defensive Aggressive International Fixed Income
Equity Portfolio Growth Portfolio Equity Portfolio Portfolio
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments at market $51,473,972 $29,441,198 $153,604,081 $95,776,755
Cash and foreign currencies 674 -- 5,390,857 964,349
Dividends and interest receivable 120,315 3,043 1,026,712 3,967,543
Receivable for investment securities sold 1,598,399 340,893 -- 922,060
Other assets 3,838 4,253 2,157 --
-----------------------------------------------------------------------------------
Total assets 53,197,198 29,789,387 160,023,807 101,630,707
-----------------------------------------------------------------------------------
LIABILITIES:
Payable for Fund shares repurchased -- -- 55,000 --
Payable for investment securities purchased 1,188,355 390,267 3,385,203 2,349,230
Other accounts payable and accrued expenses 61,746 307,236 116,492 120,808
-----------------------------------------------------------------------------------
Total liabilities 1,250,101 697,503 3,556,695 2,470,038
-----------------------------------------------------------------------------------
Total Net Assets $51,947,097 $29,091,884 $156,467,112 $ 99,160,669
===================================================================================
</TABLE>
See accompanying notes
1995 ANNUAL REPORT o DELAWARE POOLED TRUST 19
<PAGE>
Delaware Pooled Trust, Inc.
Statements of Operations
Year Ended October 31, 1995
<TABLE>
<CAPTION>
The The The The Global
Defensive Aggressive International Fixed Income
Equity Portfolio Growth Portfolio Equity Portfolio Portfolio
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 201,040 $ 262,767 $ 910,798 $ 6,842,054
Dividends 1,683,932 72,254 4,261,134 --
---------------------------------------------------------------------------------
1,884,972 335,021 5,171,932 6,842,054
---------------------------------------------------------------------------------
EXPENSES:
Management fees 255,586 202,809 792,936 349,107
Dividend disbursing and transfer agent fees
and expenses 4,850 2,744 10,437 7,079
Registration fees 17,056 9,488 28,599 16,195
Custodian fees 18,419 32,650 59,197 49,040
Reports and statements to shareholders 1,531 1,650 -- 625
Professional fees 7,885 6,640 10,252 18,184
Salaries 11,950 6,545 26,828 17,296
Taxes (other than taxes on income) 4,222 1,991 9,339 5,588
Directors' fees 3,409 3,449 3,449 3,449
Amortization of organization expenses 1,416 1,440 1,453 506
Other 9,278 9,315 13,613 10,217
---------------------------------------------------------------------------------
335,602 278,721 956,103 477,286
Less expenses absorbed by Delaware
Management Company, Inc. and
Delaware International Advisers Ltd. 17,810 39,412 -- 55,224
---------------------------------------------------------------------------------
317,792 239,309 956,103 422,062
---------------------------------------------------------------------------------
NET INVESTMENT INCOME BEFORE
FOREIGN TAX WITHHELD: 1,567,180 95,712 4,215,829 6,419,992
FOREIGN TAX WITHHELD: -- -- (488,758) (60,454)
---------------------------------------------------------------------------------
NET INVESTMENT INCOME: 1,567,180 95,712 3,727,071 6,359,538
---------------------------------------------------------------------------------
NET REALIZED GAIN AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCIES:
Net realized gain (loss) on:
Investment transactions 4,157,227 1,168,383 1,803,481 2,264,110
Foreign currencies -- -- 1,392,872 (1,606,185)
---------------------------------------------------------------------------------
Net realized gain 4,157,227 1,168,383 3,196,353 657,925
Net unrealized appreciation (depreciation)
of investments and foreign currencies
during the period 3,315,808 3,532,216 (1,168,917) 5,159,202
---------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS AND
FOREIGN CURRENCIES: 7,473,035 4,700,599 2,027,436 5,817,127
---------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS: $ 9,040,215 $ 4,796,311 $ 5,754,507 $ 12,176,665
=================================================================================
</TABLE>
See accompanying notes
20 DELAWARE POOLED TRUST o 1995 ANNUAL REPORT
<PAGE>
Delaware Pooled Trust, Inc.
Statements of Changes in Net Assets
Year Ended October 31, 1995
<TABLE>
<CAPTION>
The The The The Global
Defensive Aggressive International Fixed Income
Equity Portfolio Growth Portfolio Equity Portfolio Portfolio
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 1,567,180 $ 95,712 $ 3,727,071 $ 6,359,538
Net realized gain on investments and
foreign currencies 4,157,227 1,168,383 3,196,353 657,925
Net unrealized appreciation (depreciation)
of investments and foreign currencies
during the period 3,315,808 3,532,216 (1,168,917) 5,159,202
--------------------------------------------------------------------------------
Net increase in net assets resulting
from operations 9,040,215 4,796,311 5,754,507 12,176,665
--------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (1,141,005) (24,860) (1,266,193) (2,683,754)
Net realized gain from security transactions (1,546,708) (488,918) (1,571,582) ---
--------------------------------------------------------------------------------
(2,687,713) (513,778) (2,837,775) (2,683,754)
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 21,438,035 2,798,650 83,241,161 46,848,360
Net asset value of shares issued upon
reinvestment of dividends from net
investment income and net realized
gain from security transactions 2,618,040 513,778 2,826,102 2,273,808
-------------------------------------------------------------------------------
24,056,075 3,312,428 86,067,263 49,122,168
-------------------------------------------------------------------------------
Cost of shares repurchased (15,784,638) (1,142,800) (3,336,887) (1,720,000)
-------------------------------------------------------------------------------
Increase in net assets derived from
capital share transactions 8,271,437 2,169,628 82,730,376 47,402,168
-------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS: 14,623,939 6,452,161 85,647,108 56,895,079
NET ASSETS:
Beginning of period 37,323,158 22,639,723 70,820,004 42,265,590
End of period -------------------------------------------------------------------------------
$51,947,097 $29,091,884 $156,467,112 $99,160,669
===============================================================================
Undistributed net investment income $ 864,194 $ 81,647 $ 3,284,687 $ 3,979,923
===============================================================================
</TABLE>
See accompanying notes
1995 ANNUAL REPORT o DELAWARE POOLED TRUST 21
<PAGE>
Delaware Pooled Trust, Inc.
Statements of Changes in Net Assets
Year Ended October 31, 1994
<TABLE>
<CAPTION>
The The The The Global
Defensive Aggressive International Fixed Income
Equity Portfolio Growth Portfolio Equity Portfolio Portfolio
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 738,676 $ 16,113 $ 1,397,055 $ 3,065,983
Net realized gain (loss) on investments and
foreign currencies 1,535,246 505,673 894,100 (2,201,136)
Net unrealized appreciation (depreciation)
of investments and foreign currencies
during the period (461,803) (387,251) 3,228,171 (134,425)
--------------------------------------------------------------------------------
Net increase in net assets resulting
from operations 1,812,119 134,535 5,519,326 730,422
--------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (419,984) (37,888) (632,551) (3,001,453)
Net realized gain from security transactions (422,183) (397,820) (279,065) (1,523,836)
--------------------------------------------------------------------------------
(842,167) (435,708) (911,616) (4,525,289)
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 25,095,763 2,687,551 42,817,824 13,502,167
Net asset value of shares issued upon
reinvestment of dividends from net
investment income and net realized gain
from security transactions 838,997 435,708 911,616 4,525,289
--------------------------------------------------------------------------------
25,934,760 3,123,259 43,729,440 18,027,456
--------------------------------------------------------------------------------
Cost of shares repurchased (3,000,000) (660,012) (1,805,000) (1,280,000)
--------------------------------------------------------------------------------
Increase in net assets derived from capital
share transactions 22,934,760 2,463,247 41,924,440 16,747,456
--------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS: 23,904,712 2,162,074 46,532,150 12,952,589
NET ASSETS:
Beginning of period 13,418,446 20,477,649 24,287,854 29,313,001
--------------------------------------------------------------------------------
End of period $37,323,158 $22,639,723 $70,820,004 $42,265,590
================================================================================
Undistributed net investment income $ 438,019 $ 10,795 $ 823,809 $ 304,139
================================================================================
</TABLE>
See accompanying notes
22 DELAWARE POOLED TRUST o 1995 ANNUAL REPORT
<PAGE>
Delaware Pooled Trust, Inc.
Notes to Financial Statements
October 31, 1995
Delaware Pooled Trust, Inc. (The "Fund") is registered as a diversified open-end
investment company under the Investment Company Act of 1940. The Fund is
organized as a Maryland Corporation and offers twelve separate Portfolios
("Portfolios"). The Defensive Equity Portfolio, The Aggressive Growth Portfolio,
The International Equity Portfolio, and The Global Fixed Income Portfolio had
commenced operations prior to October 31, 1995.
1. Significant Accounting Policies
The following accounting policies are in accordance with generally accepted
accounting principles and are consistently followed by the Portfolios for
financial statement preparation:
Security Valuation--Securities listed on an exchange are valued at the last
quoted sales price as of 4:00 pm on the valuation date. Securities not traded or
listed on an exchange are valued at the mean of the last quoted bid and asked
prices. Securities listed on a foreign exchange are valued at the last quoted
sale price before each Portfolio is valued. Long-term debt securities are valued
by an independent pricing service and such prices are believed to reflect the
fair value of such securities. Money market instruments having less than 60 days
to maturity are valued at amortized cost.
Federal Income Taxes--Each Portfolio intends to continue to qualify as a
regulated investment company and make the requisite distributions to
shareholders. Accordingly, no provision for federal income taxes is required in
the financial statements.
Repurchase Agreements--Each Portfolio may invest in a pooled cash account along
with other members of the Delaware Group of Funds. The aggregate daily balance
of the pooled cash account is invested in repurchase agreements secured by
obligations of the U.S. Government. The respective collateral is held by each
Portfolio's custodian bank until the maturity of the respective repurchase
agreements. Each repurchase agreement is at least 100% collateralized. However,
in the event of default or bankruptcy by the counterparty to the agreement,
realization of the collateral may be subject to legal proceedings.
Foreign Currencies--The value of all assets and liabilities denominated in
foreign currencies are translated into U.S. dollars at the exchange rate of such
currencies against the U.S. dollar as of 3:00 pm EST. Forward foreign currency
contracts are valued at the mean between the bid and asked prices of the
contracts. Interpolated values are derived when the settlement date of the
contract is an interim date for which quotations are not available.
Other--Expenses common to all funds within the Delaware Group of Funds are
allocated amongst the funds on the basis of average net assets. Security
transactions are recorded on the date the securities are purchased or sold
(trade date). Costs used in calculating realized gains and losses on the sale of
investment securities are those of the specific securities sold. Dividend income
is recorded on the ex-dividend date and interest income is recorded on an
accrual basis. Original issue discounts are accreted to interest income over the
lives of the respective securities.
Certain fund expenses are paid directly by brokers. The amount of these expenses
is less than 0.01% of each Portfolio's average net assets.
1995 ANNUAL REPORT o DELAWARE POOLED TRUST 23
<PAGE>
2. Investment Management and Distribution Agreements
In accordance with the terms of the Investment Management Agreement, Delaware
Management Company, Inc., (DMC), the Investment Manager of The Defensive Equity
Portfolio and The Aggressive Growth Portfolio, and Delaware International
Advisers Ltd. (DIAL), the Investment Manager of The International Equity
Portfolio and The Global Fixed Income Portfolio, will receive an annual fee
which is calculated on the net assets of each Portfolio less fees paid to the
independent directors. The management fee rates are as follows:
<TABLE>
<CAPTION>
The The The The Global
Defensive Aggressive International Fixed Income
Equity Portfolio Growth Portfolio Equity Portfolio Portfolio
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Management fees as a percentage of average
daily net assets (per annum) 0.55% 0.80% 0.75% 0.50%
===============================================================================================================================
</TABLE>
At October 31, 1995, the Portfolios had liabilities for Investment Management
fees and other expenses payable to DMC or DIAL as follows:
<TABLE>
<CAPTION>
The The The The Global
Defensive Aggressive International Fixed Income
Equity Portfolio Growth Portfolio Equity Portfolio Portfolio
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment management fees and
other expenses payable to DMC or DIAL $22,154 $16,952 $61,822 $32,163
===============================================================================================================================
</TABLE>
DMC and DIAL have elected voluntarily to waive that portion, if any, of the
annual management fees payable by each Portfolio to the extent necessary to
insure that the annual operating expenses exclusive of taxes, interest,
brokerage commissions, and extraordinary expenses do not exceed 0.68%, 0.93%,
0.96%, and 0.60% for The Defensive Equity Portfolio, The Aggressive Growth
Portfolio, The International Equity Portfolio, and The Global Fixed Income
Portfolio, respectively through April 30, 1996. Total expenses absorbed by DMC
or DIAL are as follows:
<TABLE>
<CAPTION>
The The The The Global
Defensive Aggressive International Fixed Income
Equity Portfolio Growth Portfolio Equity Portfolio Portfolio
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Total expenses absorbed by DMC or DIAL $17,810 $39,412 $-- $55,224
===============================================================================================================================
</TABLE>
The Fund has engaged Delaware Service Company, Inc. (DSC), an affiliate of DMC,
to serve as dividend disbursing and transfer agent for the Portfolios. At
October 31, 1995 the amount expensed by the Portfolios and the liability for
such fees and other expenses payable to DSC are as follows:
<TABLE>
<CAPTION>
The The The The Global
Defensive Aggressive International Fixed Income
Equity Portfolio Growth Portfolio Equity Portfolio Portfolio
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Amount expensed for dividend disbursing
and transfer agent services $4,850 $2,744 $10,437 $7,079
Dividend disbursing and transfer agent fees
and other expenses payable $2,304 $2,201 $3,524 $2,318
===============================================================================================================================
</TABLE>
Certain officers of the Investment Manager are officers, directors, and/or
employees of the Fund. These officers, directors, and employees are paid no
compensation by each Portfolio.
On April 3, 1995, Delaware Management Holdings, Inc., the indirect parent of
DMC, DIAL, and DSC through a merger transaction (the "Merger"), became a
wholly-owned subsidiary of Lincoln National Corporation. Other than the
resulting change in ownership, the Merger will not materially change the manner
in which DMC, DIAL, and DSC have heretofore conducted their relationship with
the Fund.
24 DELAWARE POOLED TRUST o 1995 ANNUAL REPORT
<PAGE>
3. Investments
During the year ended October 31, 1995, each Portfolio made purchases and sales
of investment securities other than U.S. Government securities and temporary
cash investments as follows:
<TABLE>
<CAPTION>
The The The The Global
Defensive Aggressive International Fixed Income
Equity Portfolio Growth Portfolio Equity Portfolio Portfolio
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Purchases $40,712,026 $16,971,097 $96,111,394 $94,314,658
Sales $38,341,294 $13,793,916 $19,691,125 $49,586,928
===============================================================================================================================
</TABLE>
Investment securities based on cost for federal income tax purposes at October
31, 1995, are as follows:
<TABLE>
<CAPTION>
The The The The Global
Defensive Aggressive International Fixed Income
Equity Portfolio Growth Portfolio Equity Portfolio Portfolio
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Cost of investments $47,584,463 $23,798,431 $149,020,478 $90,946,540
Aggregate unrealized appreciation 4,865,577 7,352,384 10,041,932 5,020,972
Aggregate unrealized depreciation (976,068) (1,709,617) (5,458,329) (190,757)
-------------------------------------------------------------------------------
Market value of investments $51,473,972 $29,441,198 $153,604,081 $95,776,755
===============================================================================
</TABLE>
The net realized gain for federal income tax purposes for the year ended October
31, 1995, was $4,184,778, $1,188,664, $1,803,481, and $2,207,656 for The
Defensive Equity Portfolio, The Aggressive Growth Portfolio, The International
Equity Portfolio, and The Global Fixed Income Portfolio, respectively.
4. Capital Stock
Transactions in capital stock shares were as follows:
<TABLE>
<CAPTION>
The The The The Global
Defensive Aggressive International Fixed Income
Equity Portfolio Growth Portfolio Equity Portfolio Portfolio
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
10/31/95 10/31/94 10/31/95 10/31/94 10/31/95 10/31/94 10/31/95 10/31/94
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold 1,606,822 1,965,280 245,861 247,591 6,552,314 3,445,243 4,614,586 1,356,353
Shares issued upon
reinvestment of dividends
from net investment income
and net realized gains from
security transactions 214,632 67,602 49,736 39,147 229,401 73,798 221,439 443,778
-------------------------------------------------------------------------------------------------
1,821,454 2,032,882 295,597 286,738 6,781,715 3,519,041 4,836,025 1,800,131
Shares repurchased (1,130,397) (234,132) (89,704) (58,824) (260,743) (142,554) (168,124) (127,578)
-------------------------------------------------------------------------------------------------
Net increase 691,057 1,798,750 205,893 227,914 6,520,972 3,376,487 4,667,901 1,672,553
=================================================================================================
</TABLE>
1995 ANNUAL REPORT o DELAWARE POOLED TRUST 25
<PAGE>
5. Foreign Currency Forward Contracts
The following currency forward contracts were outstanding at October 31, 1995:
The International Equity Portfolio
Unrealized
In Settlement Appreciation
Contract to Deliver Exchange For Date (Depreciation)
171,639,085 Belgian Francs $ 5,867,000 12/29/95 $(94,271)
8,342,874 Deutsche Marks 5,867,000 12/29/95 (60,990)
9,340,264 Dutch Guilders 5,867,000 12/29/95 (63,176)
30,047,421 French Francs 6,127,000 12/29/95 (25,606)
1,446,507,580 Japanese Yen 14,666,000 12/29/95 381,892
4,589,238 Swedish Kroner 688,710 11/1/95 (2,066)
2,304,257 Swedish Kroner 347,443 11/2/95 604
4,652,382 Swedish Kroner 698,492 11/6/95 (4,494)
---------
$131,893
=========
Unrealized
In Settlement Appreciation
Contract to Receive Exchange For Date (Depreciation)
142,995 British Pounds $ 225,936 11/2/95 $ (321)
442,705 British Pounds 698,492 11/6/95 353
1,568,142,512 Indonesian Rupiah 688,710 11/1/95 1,797
12,423,490 Japanese Yen 121,507 11/2/95 --
---------
$1,829
=========
The following currency forward contracts were outstanding at October 31, 1995:
The Global Fixed Income Portfolio
- -------------------------------------------------------------------------------
Unrealized
In Settlement Appreciation
Contract to Deliver Exchange For Date (Depreciation)
57,800,000 Danish Kroner $10,687,870 2/28/96 $109,280
21,400,000,000 Italian Lire 13,169,231 2/28/96 (13,115)
2,045,000,000 Spanish Peseta 16,585,564 2/28/96 69,124
40,000,000 Swedish Kroner 6,006,006 2/28/96 29,527
---------
$194,816
=========
In Settlement Unrealized
Contract to Receive Exchange For Date Depreciation
2,515,072 Canadian Dollars $ 1,881,131 11/2/95 $(11,189)
===============================================================================
26 DELAWARE POOLED TRUST o 1995 ANNUAL REPORT
<PAGE>
6. Financial Highlights
Selected data for each share of the Portfolio outstanding throughout each period
were as follows:
The Defensive Equity Portfolio
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Year Year 2/3/92*
Ended Ended Ended to
10/31/95 10/31/94 10/31/93 10/31/92
<S> <C> <C> <C> <C>
Net asset value, beginning of period $13.0800 $12.7300 $10.6600 $10.0000
Income From Investment Operations:
Net investment income 0.4303 0.3203 0.2841 0.2291
Net realized and unrealized
gain from security transactions 1.9797 0.6527 2.3159 0.5109
-------------------------------------------------------------------------
Total from investment operations 2.4100 0.9730 2.6000 0.7400
-------------------------------------------------------------------------
Less Distributions:
Dividends from net investment income (0.3400) (0.2800) (0.3200) (0.0800)
Distributions from net realized gain
from security transactions (0.4900) (0.3430) (0.2100) none
-------------------------------------------------------------------------
Total distributions (0.8300) (0.6230) (0.5300) (0.0800)
-------------------------------------------------------------------------
Net asset value, end of period $14.6600 $13.0800 $12.7300 $10.6600
=========================================================================
Total return 19.77% 7.96% 25.17% 10.13%
Ratios/Supplemental Data:
Net assets, end of period (000 omitted) $ 51,947 $ 37,323 $ 13,418 $ 4,473
Ratio of expenses to average net assets 0.68%+ 0.68%+ 0.68%+ 0.68%+
Ratio of net investment income to
average net assets 3.33%++ 3.26%++ 2.90%++ 3.65%++
Portfolio turnover 88% 73% 37% 28%
</TABLE>
- -------------------------------------------------------------------------------
* Date of initial sale; ratios and total return have been annualized.
+ Ratio of expenses to average net assets prior to expense limitation was
0.71% for the year ended 10/31/95, 0.82% for the year ended 10/31/94, 1.38% for
the year ended 10/31/93, and 2.38% for the period from 2/3/92 to 10/31/92.
++ Ratio of net investment income to average net assets prior to expense
limitation was 3.30% for the year ended 10/31/95, 3.12%for the year ended
10/31/94, 2.20% for the year ended 10/31/93, and 1.95% for the period from
2/3/92 to 10/31/92.
1995 ANNUAL REPORT o DELAWARE POOLED TRUST 27
<PAGE>
6. Financial Highlights (Continued)
Selected data for each share of the Portfolio outstanding throughout each period
were as follows:
The Aggressive Growth Portfolio
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Year Year 2/27/92*
Ended Ended Ended to
10/31/95 10/31/94 10/31/93 10/31/92
<S> <C> <C> <C> <C>
Net asset value, beginning of period $11.0100 $11.2000 $ 9.0400 $10.0000
Income (Loss) From Investment Operations:
Net investment income 0.0428 0.0075 0.0181 0.0167
Net realized and unrealized
gain (loss) from security transactions 2.0552 0.0325 2.1589 (0.9767)
-------------------------------------------------------------------------
Total from investment operations 2.0980 0.0400 2.1770 (0.9600)
-------------------------------------------------------------------------
Less Distributions:
Dividends from net investment income (0.0120) (0.0200) (0.0170) none
Distributions from net realized gain
from security transactions (0.2360) (0.2100) none none
-------------------------------------------------------------------------
Total distributions (0.2480) (0.2300) (0.0170) none
-------------------------------------------------------------------------
Net asset value, end of period $12.8600 $11.0100 $11.2000 $ 9.0400
=========================================================================
Total return 19.61% 0.34% 24.10% (13.89%)
Ratios/Supplemental Data:
Net assets, end of period (000 omitted) $ 29,092 $ 22,640 $ 20,478 $ 4,538
Ratio of expenses to average net assets 0.93%+ 0.93%+ 0.93%+ 0.93%+
Ratio of net investment income to
average net assets 0.37%++ 0.07%++ 0.23%++ 0.28%++
Portfolio turnover 64% 43% 81% 34%
</TABLE>
- -------------------------------------------------------------------------------
* Date of initial sale; ratios and total return have been annualized.
+ Ratio of expenses to average net assets prior to expense limitation was
1.08% for the year ended 10/31/95, 1.17% for the year ended 10/31/94, 1.40% for
the year ended 10/31/93, and 2.56% f or the period from 2/27/92 to 10/31/92.
++ Ratio of net investment income to average net assets prior to expense
limitation was 0.22% for the year ended 10/31/95, (0.17%) for the year ended
10/31/94, (0.24%) for the year ended 10/31/93, and (1.35%) for the period from
2/27/92 to 10/31/92.
28 DELAWARE POOLED TRUST o 1995 ANNUAL REPORT
<PAGE>
6.Financial Highlights (Continued
Selected data for each share of the Portfolio outstanding throughout each period
were as follows:
The International Equity Portfolio
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Year Year 2/4/92*
Ended Ended Ended to
10/31/95 10/31/94 10/31/93 10/31/92
<S> <C> <C> <C> <C>
Net asset value, beginning of period $13.1100 $11.9900 $ 9.5000 $10.0000
Income (Loss) From Investment Operations:
Net investment income 0.4749 0.1440 0.2414 0.2282
Net realized and unrealized
gain (loss) from security transactions 0.0011 1.2360 2.5686 (0.6282)
-------------------------------------------------------------------------
Total from investment operations 0.4760 1.3800 2.8100 (0.4000)
-------------------------------------------------------------------------
Less Distributions:
Dividends from net investment income (0.1700) (0.1600) (0.3200) (0.1000)
Distributions from net realized gain
from security transactions (0.2960) (0.1000) none none
-------------------------------------------------------------------------
Total distributions (0.4660) (0.2600) (0.3200) (0.1000)
-------------------------------------------------------------------------
Net asset value, end of period $13.1200 $13.1100 $11.9900 $ 9.5000
=========================================================================
Total return 3.91% 11.66% 30.28% (5.44%)
Ratios/Supplemental Data:
Net assets, end of period (000 omitted) $156,467 $ 70,820 $24,288 $ 5,966
Ratio of expenses to average net assets 0.90% 0.94%+ 0.96%+ 0.96%+
Ratio of net investment income to
average net assets 4.81% 1.36%++ 2.98%++ 4.67%++
Portfolio turnover 20% 22% 28% 2%
</TABLE>
- -------------------------------------------------------------------------------
* Date of initial sale; ratios and total return have been annualized.
+ Ratio of expenses to average net assets prior to expense limitation was
0.97% for the year ended 10/31/94, 1.38% for the year ended 10/31/93, and 2.94%
for the period from 2/4/92 to 10/31/92.
++ Ratio of net investment income to average net assets prior to expense
limitation was 1.33% for the year ended 10/31/94, 2.56% for the year ended
10/31/93, and 2.69% for the period from 2/4/92 to 10/31/92.
1995 ANNUAL REPORT o DELAWARE POOLED TRUST 29
<PAGE>
6. Financial Highlights (Continued)
Selected data for each share of the Portfolio outstanding throughout each period
were as follows:
The Global Fixed Income Portfolio
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Year 11/30/92*
Ended Ended to
10/31/95 10/31/94 10/31/93
<S> <C> <C> <C>
Net asset value, beginning of period $ 9.7900 $11.0900 $10.0000
Income From Investment Operations:
Net investment income 0.7357 0.4189 0.9547
Net realized and unrealized
gain (loss) from security transactions 0.9243 (0.1929) 0.7433
----------------------------------------------------
Total from investment operations 1.6600 0.2260 1.6980
----------------------------------------------------
Less Distributions:
Dividends from net investment income (0.4100) (0.9490) (0.6080)
Distributions from net realized gain
from security transactions none (0.5770) none
----------------------------------------------------
Total distributions (0.4100) (1.5260) (0.6080)
----------------------------------------------------
Net asset value, end of period $11.0400 $ 9.7900 $11.0900
====================================================
Total return 17.38% 2.07% 18.96%
Ratios/Supplemental Data:
Net assets, end of period (000 omitted) $ 99,161 $ 42,266 $ 29,313
Ratio of expenses to average net assets 0.60% 0.62%+ 0.62%+
Ratio of net investment income to average net assets 6.73%++ 3.62%++ 10.68%++
Portfolio turnover 77% 205% 198%
</TABLE>
- -------------------------------------------------------------------------------
* Date of initial sale; ratios and total return have been annualized.
+ Ratio of expenses to average net assets prior to expense limitation was
0.68% for the year ended 10/31/95, 0.76% for the year ended 10/31/94, and 0.88%
for the period from 11/30/92 to 10/31/93.
++ Ratio of net investment income to average net assets prior to expense
limitation was 6.65% for the year ended 10/31/95, 3.48% for the year ended
10/31/94, and 10.42% for the period 11/30/92 to 10/31/93.
30 DELAWARE POOLED TRUST o 1995 ANNUAL REPORT
<PAGE>
Delaware Pooled Trust, Inc.
Report of Independent Auditors
To the Shareholders and Board of Directors
Delaware Pooled Trust, Inc.
We have audited the accompanying statements of net assets and statements of
assets and liabilities of The Defensive Equity Portfolio, The Aggressive Growth
Portfolio, The International Equity Portfolio, and The Global Fixed Income
Portfolio of Delaware Pooled Trust, Inc. as of October 31, 1995, and the related
statements of operations for the year then ended, the statements of changes in
net assets for each of the two years in the period then ended, and the financial
highlights for each period from the date of initial public offering of the
respective Portfolios through October 31, 1995. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
October 31, 1995 by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of The
Defensive Equity Portfolio, The Aggressive Growth Portfolio, The International
Equity Portfolio, and The Global Fixed Income Portfolio of Delaware Pooled
Trust, Inc. at October 31, 1995, the results of their operations for the year
then ended, the changes in their net assets for each of the two years in the
period then ended, and the financial highlights for each period from the date of
the initial public offering of the respective Portfolios through October 31,
1995, in conformity with generally accepted accounting principles.
Ernst & Young LLP
Philadelphia, Pennsylvania
December 8, 1995
1995 ANNUAL REPORT o DELAWARE POOLED TRUST 31
<PAGE>
Report on Delaware Pooled Trust's Annual Meeting
At an annual meeting of shareholders held on March 29, 1995, the following
matters were submitted for shareholder vote: the election of directors, the
ratification of the selection of Ernst & Young LLP as independent auditors of
the Fund, and the approval of a new investment management agreement. The new
investment management agreement was proposed in connection with the April 3,
1995, merger of Delaware Management Holdings, Inc. (the parent of Delaware
Management Company, Inc.) and a subsidiary of Lincoln National Corporation.
Whenever there is a change in control of an investment manager, the Investment
Company Act of 1940 requires shareholders to vote on a new investment-management
agreement.
Below are the names of each director elected at the meeting as well as the
results of the other matters voted on by shareholders.
Number of Votes*
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
For Against/Withheld Abstentions
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Election of Directors**
Wayne A. Stork 16,676,040 -- --
Walter P. Babich 16,676,040 -- --
Anthony D. Knerr 16,676,040 -- --
Ann R. Leven 16,676,040 -- --
W. Thacher Longstreth 16,676,040 -- --
Charles E. Peck 16,676,040 -- --
Approval of the New Investment
Management Agreement
The Defensive Equity Portfolio 3,032,046 -- --
The Aggressive Growth Portfolio 1,901,610 -- --
The International Equity Portfolio 5,891,708 -- --
The Global Fixed Income Portfolio 5,850,675 -- --
Selection of Ernst & Young LLP as
Independent Auditors** 16,676,040 -- --
- --------------------------------------------------------------------------------------------------------
</TABLE>
* Please note that the results of this meeting were not audited by Ernst &
Young LLP.
** Voted upon by all shareholders of the Fund.
32 DELAWARE POOLED TRUST o 1995 ANNUAL REPORT
<PAGE>
Delaware Pooled Trust, Inc.
Fund Officers and Portfolio Managers
Wayne A. Stork
Chairman
Winthrop S. Jessup
President and Chief Executive Officer
David G. Tilles
Managing Director and Chief Investment Officer
Delaware International Advisers Ltd.
George E. Deming
Vice President and Portfolio Manager
Edward N. Antoian
Vice President and Portfolio Manager
Timothy W. Sanderson
Portfolio Manager
Gary A. Reed
Vice President and Portfolio Manager
Ian G. Sims
Portfolio Manager
Maria E. Pollack
Assistant Vice President and Administrative Manager
Custodian
The Morgan Guaranty Trust Company of New York
60 Wall Street
New York, New York 10260
Independent Auditors
Ernst & Young LLP
Two Commerce Square
Philadelphia, Pennsylvania 19103
Legal Counsel
Stradley, Ronon, Stevens & Young
One Commerce Square
Philadelphia, Pennsylvania 19103
Investment Advisers
Delaware Investment Advisers
One Commerce Square
Philadelphia, Pennsylvania 19103
Delaware International Advisers Ltd.
Veritas House
125 Finsbury Pavement
London, England EC2A 1NQ
This report was prepared for institutional investors in the Delaware
Pooled-Trust Portfolios. It may be distributed to others only if preceded or
accompanied by a current Delaware Pooled Trust, Inc. Prospectus, which contains
detailed information. All Delaware Pooled-Trust Portfolios are offered by
prospectus only.
<PAGE>
DELAWARE POOLED TRUST
=====================
One Commerce Square
Philadelphia, Pennsylvania 19103
Telephone 1-800-231-8002
Fax 215-255-8864
<PAGE>
Delaware Pooled Trust,Inc.-The International Fixed Income Portfolio
Statement of Assets and Liabilities
October 31, 1995
ASSETS:
Deferred organization and
registration expenses $19,413
-------
19,413
-------
LIABILITIES:
Accounts payable
and other accrued expenses 19,413
-------
19,413
-------
NET ASSETS $ -0-
=======
See accompanying notes
<PAGE>
Delaware Pooled Trust,Inc.-The International Fixed Income Portfolio
Notes to Financial Statements
October 31, 1995
Delaware Pooled Trust, Inc. ("the Fund") is registered as a diversified open-end
investment company under the Investment Company Act of 1940. The Fund is
organized as a Maryland Corporation and offers twelve separate Portfolios
("Portfolios"). The Defensive Equity Portfolio, The Aggressive Growth Portfolio,
The International Equity Portfolio and The Global Fixed Income Portfolio had
commenced operations prior to October 31, 1995.
1. Significant Accounting Policies
The following accounting policies are in accordance with generally accepted
accounting principles and are consistently followed by the Portfolio for
financial statement preparation:
Security Valuation-Securities listed on an exchange will be valued at the last
quoted sales price as of 4:00 pm on the valuation date. Securities not traded or
securities not listed on an exchange will be valued at the mean of the last
quoted bid and asked prices. Long-term debt securities will be valued by an
independent pricing service when such prices are believed to reflect the fair
value of such securities. Money market instruments having less than 60 days to
maturity will be valued at amortized cost.
Federal Income Taxes-The Portfolio intends to continue to qualify as a regulated
investment company and make the requisite distributions to shareholders.
Accordingly, no provision for federal income taxes is required in the financial
statements.
Repurchase Agreement-The Portfolio may invest in a pooled cash account along
with other members of the Delaware Group of Funds. The aggregate daily balance
of the pooled cash account will be invested in repurchase agreements secured by
obligations of the U.S. Government. The respective collateral will be held by
the Portfolio's custodian bank until the maturity of the respective repurchase
agreements. Each repurchase agreement is 100% collateralized. However, in the
event of default or bankruptcy by the counterparty to the agreement, realization
of the collateral may be subject to legal proceedings.
Other-Expenses common to all funds within the Delaware Group of Funds will be
allocated amongst the funds on the basis of average net assets. Security
transactions will be recorded on the date the securities are purchased or sold
(trade date). Costs used in calculating realized gains and losses on the sale of
investment securities will be those of the specific securities sold. Dividend
income will be recorded on the ex-dividend date and interest income will be
recorded on an accrual basis. Original issue discounts will be accreted to
interest income over the lives of the respective securities. Organization and
registration expenses will be amortized over a 5 and 2 year period beginning on
the date of commencement of operations. No amortization expense has been
recognized as of October 31, 1995.
2. Investment Management and Distribution Agreement
In accordance with the terms of the Investment Management Agreement, the
Portfolio will pay Delaware Management Company, Inc. (DMC), the Investment
Manager of the Portfolio an annual fee which will be calculated daily at the
rate of 0.50% of average daily net assets less fees paid to the independent
directors.
DMC has undertaken voluntarily to waive its fee and reimburse the Portfolio to
the extent that annual operating expenses exclusive of taxes, interest,
brokerage commission and extraordinary expense, exceed 0.60% of average net
assets through April 30, 1996.
On April 3, 1995, Delaware Management Holdings, Inc., the indirect parent of
DMC, through a merger transaction (the "Merger") became a wholly-owned
subsidiary of Lincoln National Corporation. Other than the resulting change in
ownership, the Merger will not materially change the manner in which DMC has
heretofore conducted its relationship with the Fund.
3. Components of Net Assets
500,000,000 shares, $.01 par value, have been authorized to the Fund with
50,000,000 shares allocated to the Portfolio.
4. Financial Highlights
Selected data for each share of the Portfolio outstanding throughout the period
has been omitted since the Portfolio has not commenced operations.
<PAGE>
Delaware Pooled Trust, Inc. - The International Fixed Income Portfolio
Report of Independent Auditors
To the Shareholders and Board of Directors
Delaware Pooled Trust, Inc. - The International Fixed Income Portfolios
We have audited the accompanying statement of assets and liabilities of Delaware
Pooled Trust, Inc. - The Fixed Income Portfolio as of October 31, 1995. This
financial statement is the responsibility of the Fund's management. Our
responsibility is to express an opinion on this financial statement based on our
audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statement referred to above presents fairly, in
all material respects, the financial position of Delaware Pooled Trust, Inc. -
The Fixed Income Portfolio at October 31, 1995, in conformity with general
accepted accounting principles.
Ernst & Young LLP
Philadelphia, Pennsylvania
December 1995
<PAGE>
Delaware Pooled Trust, Inc. - The Limited-Term Maturity Portfolio
Statement of Assets and Liabilities
October 31, 1995
ASSETS:
Cash $21,000
Deferred organization and
registration expenses 38,929
-------
59,929
-------
LIABILITIES:
Accounts payable
and other accrued expenses 38,929
-------
38,929
-------
NET ASSETS APPLICABLE TO 2,100
SHARES OUTSTANDING: EQUIVALENT
TO $10.00 PER SHARE $21,000
=======
Ssee Accompanying Notes
<PAGE>
Delaware Pooled Trust, Inc. - The Limited-Term Maturity Portfolio
Notes to Financial Statements
October 31, 1995
Delaware Pooled Trust, Inc. ("the Fund") is registered as a diversified open-end
investment company under the Investment Company Act of 1940. The Fund is
organized as a Maryland Corporation and offers twelve separate Portfolios
("Portfolios"). The Defensive Equity Portfolio, The Aggressive Growth Portfolio,
The International Equity Portfolio and The Global Fixed Income Portfolio had
commenced operations prior to October 31, 1995.
1. Significant Accounting Policies
The following accounting policies are in accordance with generally accepted
accounting principles and are consistently followed by the Portfolio for
financial statement preparation:
Security Valuation - Securities listed on an exchange will be valued at the last
quoted sales price as of 4:00 pm on the valuation date. Securities not traded or
securities not listed on an exchange will be valued at the mean of the last
quoted bid and asked prices. Long-term debt securities will be valued by an
independent pricing service when such prices are believed to reflect the fair
value of such securities. Money market instruments having less than 60 days to
maturity will be valued at amortized cost.
Federal Income Taxes - The Portfolio intends to continue to qualify as a
regulated investment company and make the requisite distributions to
shareholders. Accordingly, no provisions for federal income taxes is required in
the financial statements.
Repurchase Agreements - The Portfolio may invest in a pooled cash account along
with other members of the Delaware Group of Funds. The aggregate daily balance
of the pooled cash account is invested in repurchase agreements secured by
obligations of the U.S. government. The respective collateral will be held by
the Portfolio's custodian bank until maturity of the respective repurchase
agreements. Each repurchase agreement will be 100% collateralized. However, in
the event of default or bankruptcy by the counterparty to the agreement,
realization of the collateral may be subject to legal proceedings.
Other - Expenses common to all funds within the Delaware Group of Funds are
allocated amongst the funds on the basis of average net assets. Security
transactions will be recorded on the date the securities are purchased or sold
(trade date). Costs used in calculating realized gains and losses on the sale of
investment securities will be those of the specific securities sold. Dividend
income will be recorded on the ex-dividend date and interest income will be
recorded on an accrual basis. Original issue discounts will be accreted to
interest income over the lives of the respective securities. Organization and
registration expenses will be amortized over a 5 and 2 year period beginning on
the date of commencement of operations. No amortization expense has been
recognized as of October 31, 1995.
2. Investment Management and Distribution Agreements
In accordance with the terms of the Investment Management Agreement, the
Portfolio will pay Delaware Management Company, Inc. (DMC), the Investment
Manager of the Portfolio an annual fee which will be calculated daily at the
rate of 0.30% of average daily net assets less fees paid to the independent
directors.
DMC has undertaken voluntarily to waive its fee and reimburse the Portfolio to
the extent that annual operating expenses, exclusive of taxes, interest,
brokerage commissions and extraordinary expenses exceed 0.43% of average net
assets through April 30, 1996.
On April 3, 1995, Delaware Management Holdings, Inc., the indirect parent of
DMC, through a merger transaction (the "Merger") became a wholly-owned
subsidiary of Lincoln National Corporation. Other than the resulting change in
ownership, the Merger will not materially change the manner in which DMC has
heretofore conducted its relationship with the Fund.
3. Components of Net Assets
500,000,000 shares $.01 par value, have been authorized to the Fund with
50,000,000 shares allocated to the Portfolio. All outstanding shares are owned
by DMC.
4. Financial Highlights
Selected data for each share of the Portfolio outstanding throughout the period
has been omitted since the Portfolio has not commenced operations.
<PAGE>
Report of Independent Auditors
To the Shareholders and Board of Directors
Delaware Pooled Trust, Inc. - The Limited-Term Maturity Portfolio
We have audited the accompanying statement of assets and liabilities of Delaware
Pooled Trust, Inc. - The Limited-Term Maturity Portfolio as of October 31, 1995.
This financial statement is the responsibility of the Fund's management. Our
responsibility is to express an opinion on this financial statement based on our
audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statement referred to above presents fairly, in
all material respects, the financial position of Delaware Pooled Trust, Inc. -
The Limited-Term Maturity Portfolio at October 31, 1995, in conformity with
general accepted accounting principles.
Ernst & Young LLP
Philadelphia, Pennsylvania
December 8, 1995
<PAGE>
Delaware Pooled Trust, Inc.-The Fixed Income Portfolio
Statement of Assets and Liabilities
October 31, 1995
ASSETS:
Cash $21,000
Deferred organization and
registration expenses 40,571
-------
61,571
-------
LIABILITIES:
Accounts payable
and other accrued expenses 40,571
-------
40,571
-------
NET ASSETS APPLICABLE TO 2,100
SHARES OUTSTANDING; EQUIVALENT
TO $10.00 PER SHARE $21,000
=======
See Accompanying Notes
<PAGE>
Delaware Pooled Trust,Inc.-The Fixed Income Portfolio
Notes to Financial Statements
October 31, 1995
Delaware Pooled Trust, Inc. ("the Fund") is registered as a diversified open-end
investment company under the Investment Company Act of 1940. The Fund is
organized as a Maryland Corporation and offers twelve separate Portfolios
("Portfolios"). The Defensive Equity Portfolio, The Aggressive Growth Portfolio,
The International Equity Portfolio, and The Global Fixed Income Portfolio had
commenced operations prior to October 31, 1995.
1. Significant Accounting Policies
The following accounting policies are in accordance with generally accepted
accounting principles and are consistently followed by the Portfolio for
financial statement preparation:
Security Valuation-Securities listed on an exchange will be valued at the last
quoted sales price as of 4:00 pm on the valuation date. Securities not traded or
securities not listed on an exchange will be valued at the mean of the last
quoted bid and asked prices. Long-term debt securities will be valued by an
independent pricing service when such prices are believed to reflect the fair
value of such securities. Money market instruments having less than 60 days to
maturity will be valued at amortized cost.
Federal Income Taxes-The Portfolio intends to continue to qualify as a regulated
investment company and make the requisite distributions to shareholders.
Accordingly, no provision for federal income taxes is required in the financial
statements.
Repurchase Agreement-The Portfolio may invest in a pooled cash account along
with other members of the Delaware Group of Funds. The aggregate daily balance
of the pooled cash account will be invested in repurchase agreements secured by
obligations of the U.S. Government. The respective collateral will be held by
the Portfolio's custodian bank until the maturity of the respective repurchase
agreements. Each repurchase agreement will be 100% collateralized. However, in
the event of default or bankruptcy by the counterparty to the agreement,
realization of the collateral may be subject to legal proceedings.
Other-Expenses common to all funds within the Delaware Group of Funds are
allocated amongst the funds on the basis of average net assets. Security
transactions will be recorded on the date the securities are purchased or sold
(trade date). Costs used in calculating realized gains and losses on the sale of
investment securities will be those of the specific securities sold. Dividend
income will be recorded on the ex-dividend date and interest income will be
recorded on an accrual basis. Original issue discounts will be accreted to
interest income over the lives of the respective securities. Organization and
registration expenses will be amortized over a 5 and 2 year period beginning on
the date of commencement of operations. No amortization expense has been
recognized as of October 31, 1995.
2. Investment Management and Distribution Agreement
In accordance with the terms of the Investment Management Agreement, the
Portfolio will pay Delaware Management Company, Inc. (DMC), the Investment
Manager of the Portfolio an annual fee which will be calculated daily at the
rate of 0.40% of average daily net assets less fees paid to the independent
directors.
DMC has undertaken voluntarily to waive its fee and reimburse the Portfolio to
the extent that annual operating expenses exclusive of taxes, interest,
brokerage commission and extraordinary expense, exceed 0.53% of average net
assets through April 30, 1996.
On April 3, 1995, Delaware Management Holdings, Inc., the indirect parent of
DMC, through a merger transaction (the "Merger") became a wholly-owned
subsidiary of Lincoln National Corporation. Other than the resulting change in
ownership, the Merger will not materially change the manner in which DMC has
heretofore conducted its relationship with the Fund.
3. Components of Net Assets
500,000,000 shares, $.01 par value, have been authorized to the Fund with
50,000,000 shares allocated to the Portfolio. All outstanding share are owned by
DMC.
4. Financial Highlights
Selected data for each share of the Portfolio outstanding throughout the period
has been omitted since the Portfolio has not commenced operations.
<PAGE>
Report of Independent Auditors
To the Shareholders and Board of Directors
Delaware Pooled Trust, Inc. - The Fixed Income Portfolio
We have audited the accompanying statement of assets and liabilities of Delaware
Pooled Trust, Inc. - The Fixed Income Portfolio as of October 31, 1995. This
financial statement is the responsibility of the Fund's management. Our
responsibility is to express an opinion on this financial statement based on our
audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statement referred to above presents fairly, in
all material respects, the financial position of Delaware Pooled Trust, Inc. -
The Fixed Income Portfolio at October 31, 1995, in conformity with general
accepted accounting principles.
Ernst & Young LLP
Philadelphia, Pennsylvania
December 8,1995
