<PAGE>
DELAWARE
POOLED
TRUST
--------
1996
Annual
Report
Defensive Equity:
Thriving in the Goldilocks Economy
Page 2
Aggressive Growth:
Bullish on Services
Page 4
Real Estate Investment Trust:
Good Values Still Plentiful
Page 6
Fixed Income:
Mortgage Bonds Come to the Fore
Page 8
International Equity:
Seven Points of Outperformance
Page 10
Labor Select International Equity:
A Fast Start Out of the Gate
Page 12
Global Fixed Income:
Some Caution After a Strong Year
Page 14
<PAGE>
Contents
1 Portfolio Returns and Objectives
2 The Defensive Equity Portfolio Review
4 The Aggressive Growth Portfolio Review
6 The Real Estate Investment Trust
Portfolio Review
8 The Fixed Income Portfolio Review
10 The International Equity Portfolio Review
12 The Labor Select International Equity
Portfolio Review
14 The Global Fixed Income Portfolio Review
16 Financial Statements
49 Report of Independent Auditors
50 Fund Officers and Portfolio Managers
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 $31 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, The
Aggressive Growth, The Real Estate Investment Trust, and The Fixed Income
Portfolios. Delaware International Advisers Ltd., a London-based affiliate of
Delaware Management Company, serves as investment adviser for The International
Equity, The Labor Select 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, 1996
Total Return*
<TABLE>
<CAPTION>
One Three Since
Year Years Inception+
(annualized) (annualized)
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Defensive Equity 24.87% 17.32% 17.75%
- -----------------------------------------------------------------------------------------------------
Aggressive Growth 19.19 12.67 10.64
- -----------------------------------------------------------------------------------------------------
Real Estate Investment Trust** - - 26.12
- -----------------------------------------------------------------------------------------------------
Fixed Income** - - 4.08
- -----------------------------------------------------------------------------------------------------
International Equity 18.12 11.08 12.03
- -----------------------------------------------------------------------------------------------------
Labor Select International Equity** - - 17.97
- -----------------------------------------------------------------------------------------------------
Global Fixed Income 16.40 11.73 13.38
- -----------------------------------------------------------------------------------------------------
</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. Since
01992 Delaware Management Company has 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 a percentage of average net assets. In the
absence of that waiver, the portfolios' total returns would have been lower.
**Portfolio has been active for less than one year. The return is calculated
from the inception date.
+The inception dates for each Delaware Pooled Trust Portfolio are as follows:
Defensive Equity, February 3, 1992; Aggressive Growth, February 27, 1992; Real
Estate Investment Trust, December 6, 1995; Fixed Income, March 12, 1996;
International Equity, February 4, 1992; Labor Select International Equity,
December 19, 1995; and Global Fixed Income, November 30, 1992.
- -------------------------------------------------------------------------------
<PAGE>
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 Real Estate Investment Trust Portfolio seeks to achieve a maximum long-term
total return, with capital appreciation a secondary objective. The portfolio
will invest at least 65% of its assets in stocks of real-estate investment
trusts.
The Fixed Income Portfolio seeks to achieve a maximum long-term total return,
consistent with reasonable risk, by investing in diversified investment-grade
bonds, including U.S. government, mortgage-backed, corporate, and other
fixed-income securities.
The International Equity Portfolio seeks to achieve a 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 Labor Select International Equity Portfolio seeks to achieve a 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, and that are
compatible with certain investment policies or restrictions followed by
organized labor.
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.
<PAGE>
Defensive Equity:
Thriving in the Goldilocks Economy
It has been called the Goldilocks economy -- neither too strong nor too weak.
Such an economy, in which both inflation and recession seemingly pose no serious
threats, has been a boon to the awe-inspiring advance of the stock market. For a
record 73 months the market, as represented by the S&P 500-Stock Index, has
progressed without at least a 10% correction. Most recently, for fiscal 1996 the
market was up 23.99%, and The Defensive Equity Portfolio did even better, with a
return of 24.87%.
The portfolio's outperformance can be attributed to strong returns in the
banking, insurance, consumer-growth, capital-goods, raw-materials, chemical, and
energy sectors. A few sectors underperformed -- consumer staples, electric
utility, and telecommunications. Overall, the portfolio's returns were fueled by
varied mixtures of favorable earnings, strengthened balance sheets, a continuing
spate of mergers and acquisitions, share repurchases, and dividend increases.
During periodic market rotations throughout the year, we opportunistically
increased our weightings in certain banking, insurance, capital-goods, and
consumer-growth stocks, as their prices dropped to levels that we deemed unduly
low in relation to the companies' prospective earnings power. For instance, in
consumer growth, we emphasized pharmaceutical companies like American Home
Products and Bristol-Myers Squibb because we rightly anticipated that their
profits would be fortified by strong unit growth and new products with
formidable pricing power, such as drugs for reducing cholesterol.
Although remaining acutely vulnerable to a correction at some point, the market
has the capacity to keep attaining new highs in the near term, in our judgment.
For one thing, we are heartened by the outcome of the November elections, in
which the political status quo of a Democratic White House and a Republican
Congress remains in force. Such an arrangement limits the chances of higher
taxes or a worsening federal deficit -- and in the process increases the chances
that the Goldilocks economy will continue to hold sway. Two other likely benign
catalysts for the market: high employment and rising personal incomes, which
should help keep corporate profits growing-about 10% this year and about 7-8%
next year, according to our projections.
<PAGE>
Over the past 12 months Defensive Equity
widened its margin of outperformance versus
the stock market as a whole.
---------------------------------
Defensive Equity: Growth of $10,000 Annualized Total Return
Periods ending October 31, 1996
---------------------------------
One Year Since Inception
24.87% 17.75%
---------------------------------
Defensive Equity S&P 500 -- Stock Index
---------------- ----------------------
2/3/92 $10,000.00 $10,000.00
2/29/92 $10,150.00 $10,118.00
3/31/92 $10,100.42 $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
<PAGE>
10/30/95 $17,367.84 $15,798.26
11/30/95 $18,257.08 $16,479.17
12/30/95 $18,786.53 $16,797.22
1/30/96 $19,295.65 $17,368.32
2/29/96 $19,388.27 $17,529.85
3/30/96 $19,779.91 $17,698.13
4/30/96 $19,963.86 $17,958.30
5/30/96 $20,239.36 $18,421.62
6/30/96 $20,148.29 $18,491.62
7/30/96 $19,688.91 $17,674.29
8/30/96 $20,149.63 $18,047.22
9/30/96 $21,003.97 $19,062.92
10/30/96 $21,688.70 $19,589.06
<PAGE>
*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.
<PAGE>
To be sure, some valuation measures for the market are potential sources of
disquiet. For the S&P 500, the dividend yield is 2.10, an all-time low; the
price/book ratio is 3.0, nearly an all-time high. Nevertheless, we draw some
cheer from the market's average price/earnings ratio based on estimated 1996
earnings, a quite reasonable 18, a figure that is not without precedent. In the
early 1960s, a comparable period of slow but steady economic growth, subdued
inflation, and an accommodating Federal Reserve Board, the market's P/E ranged
from 15 to 22. In that context, today's P/E suggests the market still harbors
potential for further gains.
However, as a defensive measure in recognition of the market's considerable
down-side risk, we are keeping the portfolio broadly diversified, are invested
in stocks selling for the most part at a substantial discount to the market
based on trailing 12-month earnings, and are sustaining an above-average yield.
Portfolio Manager
(picture of George E. Deming goes here)
George E. Deming
Has managed the portfolio since its inception...joined Delaware in 1978...
previously at White, Weld & Co. . . . 30 years of investment experience...earned
bachelor's degree at the University of Vermont and master's degree in
international affairs at the University of Pennsylvania's Wharton School...based
in Philadelphia.
<PAGE>
Defensive Equity: Portfolio Profile
October 31, 1996
Price/earnings ratio 18.1
Annual equity dividend yield at
market value 3.10%
Four-year beta 0.85
Annual turnover 74%
Total net assets $67.2 million
Asset composition (based on total net assets) Common stocks 94.8% Cash
equivalents and other assets 5.2%
Industry composition
20.8% Banking/finance/insurance
14.7% Health care/pharmaceuticals
10.6% Energy
7.9% Telecommunications
5.7% Food/beverage/tobacco
5.0% Chemicals
5.0% Paper/forest products
4.0% Automobiles/auto parts
3.8% Electronics/electrical
3.0% Transportation/shipping
2.5% Aerospace/defense
2.3% Packaging/containers
2.3% Retail
2.0% Metals/mining
1.6% Cable/media/publishing
1.0% Consumer products
0.9% Utilities
1.7% Miscellaneous
5.2% Cash and other
Number of holdings 67
Top 10 holdings
1. DuPont
2. SmithKline Beecham ADR
3. Warner-Lambert
4. Bristol-Myers Squibb
5. Minnesota Mining & Manufacturing
6. Mobil
7. Texaco
8. Glaxo Wellcome ADR
9. Bank of Boston
10. BCE
<PAGE>
Aggressive Growth:
Bullish on Services
The Aggressive Growth Portfolio participated fully -- and then some -- in the
powerful surge in small-cap stocks during the first half of fiscal 1996. The
portfolio recorded an annual return of 19.19%, which outdistanced that of the
Russell 2000-Stock Index by more than 2.5 percentage points.
All the portfolio's gain came in the first six months of the fiscal year and was
preserved in the second half, when small-cap stocks careened into a tailspin.
From May to August, the Russell 2000 fell 15.6%, then only partially recovered.
The slump was prompted mainly by a decline in cash inflows into equity mutual
funds and, in some cases, by share prices climbing to what all but the most
Pollyanna-ish market pundits conceded were unsustainable heights. Technology
companies, for instance, were routinely selling at price/earnings ratios of at
least 30 times estimated 1997 earnings. Overall, more than 20% of all small-cap
shares were priced at multiples exceeding 30, compared with about 6% in 1988.
Our best-performing investments for fiscal 1996 were in business services,
consumer durables, consumer services, financial, transportation, and energy, all
of which beat the Russell index. Less successful were our investments in
health-care companies, which underperformed as their earnings power continued to
deteriorate from changes in Medicare and Medicaid reimbursement procedures, and
technology companies, whose shares were, as noted, victims of speculative
excess. Fortunately, we were underweighted in technology, which lessened the
damage to our results.
In the aftermath of the correction, small-cap stocks are selling at a multiple
relative to large-cap stocks that's in the middle of the historic range --
neither compellingly cheap nor expensive. As such, our attitude toward the
prospects of small-cap stocks is one of prudent caution. On the one hand, since
valuation ultimately influences return potential, the market would appear to
still have up-side potential, especially since earnings by and large are holding
up satisfactorily. On the other hand, a considerable degree of speculative
fervor still grips the small-cap market, with momentum investors buying popular
stocks irrespective of their valuations or the companies' long-term earnings
power. What's worrisome is that if small stocks totter again, the richly priced
shares favored by momentum investors may falter badly, and the ripple effects
may wash over the entire market. If that happens, the merit of our own
particular investment discipline --
Aggressive Growth's value has risen in a small-cap market whose results have
lagged those of large-cap stocks since 1992
Aggressive Growth: Growth of $10,000*
-----------------------------------
Annualized Total Return
Periods ending October 31, 1996
-----------------------------------
One Year Since Inception
19.19% 10.64%
-----------------------------------
<PAGE>
Agressive Growth Russell 2000 -- Stock Index
---------------- ---------------------------
2/27/92 $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 $13,462.55 $14,920.27
11/30/95 $14,142.41 $15,547.07
12/30/95 $14,228.68 $15,957.21
1/30/96 $14,514.67 $15,939.65
2/29/96 $15,076.39 $16,436.97
3/30/96 $15,263.34 $16,772.28
4/30/96 $16,122.66 $17,669.60
5/30/96 $16,749.84 $18,365.78
6/30/96 $16,254.04 $17,611.69
7/30/96 $14,822.06 $16,074.19
8/30/96 $15,912.96 $17,008.10
9/30/96 $16,837.51 $17,672.77
10/30/96 $16,044.46 $17,400.43
*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.
<PAGE>
investing in stocks only when the price is attractive relative to the company's
growth rate -- may become abundantly manifest.
In our judgment, one sector continuing to offer reasonable equity prices is
services, both consumer and business. Quite simply, our fondness for these
stocks reflects recognition of a fundamental long-term trend: the increasingly
service-oriented nature of the economy. Our analysis suggests that the best-
managed, best-performing service companies should continue to grow even in a
slowing economy. Accordingly, our positions in business and consumer services
are double the index weightings and constitute nearly one-third of the
portfolio.
We are also sanguine about the outlook for select technology companies and plan
to increase our investment in them to a market weighting of about 20%. Among the
companies we like are firms with products and services that help expand the band
widths of communications networks; makers of personal-computer components or
systems, which are profiting from a cyclical resurgence in demand; and
developers of proprietary software with strong commercial potential.
PORTFOLIO MANAGERS
Edward N. Antoian
(Photo of Edward N. Antoian Goes Here)
Has managed the portfolio since its inception...joined Delaware in 1984...
formerly employed at E. F. Hutton and Price Waterhouse...earned bachelor's
degree at The State University of New York and MBA in finance at the University
of Pennsylvania's Wharton School...a chartered financial analyst...based in
Philadelphia.
Gerald S. Frey
(Photo of Gerald S. Frey goes here)
Began managing the portfolio this year, when he joined Delaware...
his previous position: senior director at Morgan Grenfell Capital Management...
nearly 20 years of experience in investment management...received bachelor's
degree from Bloomsburg University and MBA from Wilkes College...based in
Philadelphia.
<PAGE>
Aggressive Growth: Portfolio Profile
October 31, 1996
Price/earnings ratio 27.9
Annual equity dividend yield at
market value 0.78%
Four-year beta 1.00
Annual turnover 95%
Total net assets $28.5 million
Asset composition (based on total net assets) Common stocks 93.0% Cash
equivalents and other assets 7.0%
Industry composition
18.9% Computers/technology
18.2% Health care/pharmaceuticals
9.3% Banking/finance/insurance
9.3% Retail
8.2% Leisure/lodging/entertainment
5.5% Textiles/apparel/furniture
4.4% Environmental services
4.1% Electronics/electrical
2.8% Food/beverage/tobacco
2.2% Utilities
1.7% Cable/media/publishing
1.5% Telecommunications
1.4% Consumer products
1.1% Transportation/shipping
4.4% Miscellaneous
7.0% Cash and other
Number of holdings 96
Top 10 holdings
1. HFS
2. Health Management Associates, Class A
3. HealthSouth
4. AES
5. Bisys Group
6. Gucci Group N. V.
7. Affiliated Computer Services
8. First Data
9. CUC International
10. Tommy Hilfiger
<PAGE>
Real Estate Investment Trust:
Good Values Still Plentiful
From its inception last December through October 31, The Real Estate Investment
Trust returned 26.12% and outperformed the NAREIT Equity REIT Index by more than
two percentage points.
The portfolio's sterling performance can be attributed mainly to our two
biggest, most lucrative sector positions: office/industrial and hotel, which
together accounted for more than 40% of our holdings. Among office/industrial
REITs, especially profitable investments included Cali Realty, Reckson
Associates Realty, Duke Realty, and Crescent Realty; among hotel REITs, Starwood
Lodging Trust and Patriot American Hospitality.
Hotel REITs benefited from marked increases in room and occupancy rates. Indeed,
hotel revenues as a percentage of occupancy rates are rising 2.5 times faster
than inflation is, especially for the luxury and full-service hotels we
emphasized. Office/industrial REITs were the beneficiaries of rising occupancy
rates, as demand for space exceeds supply nationally.
Also contributing to our results in the second half of fiscal 1996 were our
health-care stocks. Investors responded positively to the recent decline of
interest rates, which improved the economics of acquiring health-care
properties. Also, the supply/demand balance at long-term care centers has been
skewed in favor of existing REITs specializing in this niche. The reason:
aspiring operators of long-term care centers are experiencing difficulties in
acquiring operating licenses from municipalities.
Overall, the real-estate industry's fundamentals continue to improve and reflect
a distinct recovery from the severely depressed levels of the late 1980s and
early 1990s. We expect our own holdings' funds from operations -- a key measure
of REIT profitability -- to grow at an average 7-8% rate over the next 12
months.
Moreover, REITs continue to mature into a major equity market, with a
capitalization of more than $66 billion. As the market matures, REITs are
gaining favor with a new, growing corps of investors. According to research
studies by Alex. Brown & Sons, among others, investors believe REITs are
attractive for a number of reasons (all of which we concur with): REITs are one
of the few remaining undervalued niches in equities today; REITs are more liquid
than a direct investment in real estate is; REITs can be an effective
volatility-reducing diversification tool, since their performance pattern has
Real Estate Investment Trust has exceeded the performance of a sector that has
rounded after bottoming out in 1990
- --------------------------------------------------
Total Return
For the period December 6, 1995 - October 31, 1996
- --------------------------------------------------
26.12%
- --------------------------------------------------
Growth of $10,000: Real Estate Investment Trust*
NAREIT Real Estate
Equity REIT Investment Trust
----------- ----------------
12/6/95 $10,000 $10,000
1/31/96 $10,165 $10,155
2/29/96 $10,284 $10,204
3/31/96 $10,227 $10,281
4/30/96 $10,280 $10,253
5/31/96 $10,545 $10,534
6/30/96 $10,682 $10,836
7/31/96 $10,762 $10,816
8/31/96 $11,186 $11,370
9/30/96 $11,381 $11,691
10/31/96 $11,719 $12,128
* Past performance is not necessarily indicative of future results. Total return
assumes reinvestment of dividends and captial gains, as well as no reduction for
taxes.
The NAREIT Equity REIT Index is an unmanaged index and a theoretical measure of
the performance of real-estate investment trust stocks in aggregate rather than
an actual available investment.
<PAGE>
typically differed from that of other investments; and REITs have delivered
relatively consistent performance in weak or declining markets.
We plan no notable changes in our current weightings and believe our office/
industrial holdings in particular offer auspicious return potential. We are
underweighted in the retail sector in the belief that same-store sales growth is
likely to be unimpressive in the near term, inasmuch as the nation is burdened
with a surfeit of retail competition. We also are avoiding certain companies
whose shares, in our estimation, are fairly priced, such as California REITs
that have bounced back from the state's extended recession.
Finally, we believe the portfolio's current yield should be especially appealing
to income-oriented shareholders: it exceeds that of a 10-year Treasury bond by
0.48 percentage points.
Portfolio Managers
Steven R. Brody
(Photo Of Steven R. Brody goes here)
Has served as subadviser to the portfolio since its inception...oversees
day-to-day operation of investment management unit of Lincoln National
Corporation, Delaware's corporate parent.joined Lincoln in 1987...earned
bachelor's degree at Miami University in Ohio...fellow of the Life Office
Management Association...based in Fort Wayne.
Lawrence T. Kissko
(Photo of Lawrence T. Kissko goes here)
Has served as subadviser to the portfolio since its inception...joined Lincoln
in 1983...previously employed by Union Mutual Life Insurance Company...earned a
bachelor's degree at Rensselaer Polytechnic Institute and an MBA in finance at
The State University of New York...a chartered financial analyst...based in Fort
Wayne.
John F. Robertson
(Photo of John F. Robertson goes here)
Has been subadviser to the portfolio since its inception...joined Lincoln in
1993...previously was a consultant with Ernst & Young's Special Services Group,
where he specialized in commercial real estate...earned a bachelor's degree at
Wabash College and an MBA in finance and real estate at Indiana University...
based in Fort Wayne.
<PAGE>
Real Estate Investment Trust:
Portfolio Profile
October 31, 1996
Price/funds-from-operations ratio 11.2
Annual equity dividend yield at
market value 6.82%
Total net assets $26.5 million
Asset composition (based on total net assets) Common stocks 98.1% Cash
equivalents and other assets 1.9%
Industry composition
28.0% Office/industrial REITs
14.8% Retail-strip center REITs
14.5% Hotel/diversified REITS
14.2% Multifamily (apartment) REITs
8.8% Health-care REITs
7.8% Self-storage REITs
6.2% Manufactured-housing REITs
3.9% Mall REITs
1.9% Cash and other
Number of holdings 34
Top 10 holdings
1. Cali Realty
2. Patriot American Hospitality
3. Health Care Properties Investment
4. Simon DeBartolo Group
5. Security Capital Pacific Trust
6. Reckson Associates Realty
7. Prentiss Properties Trust
8. Colonial Properties
9. Sun Communities
10. Equity Residential Properties
Babak Zenouzi
(Photo of Babak Zenouzi goes here)
Has managed te portfolio since its inception...joined Delaware in 1992 as a
quantitative analyst and was promoted to portfolio management...formerly served
as senior vice president, statistical reporting and analysis, at The Boston
Company...member of the National Association of Real Estate Investment
Trusts...based in Philadelphia.
<PAGE>
Fixed Income:
Mortgage Bonds Come to the Fore
At October 31, interest rates ended up little changed from where they stood at
March 12, the inception date of The Fixed Income Portfolio. The rate stability
allowed the corporate, mortgage, and asset-backed holdings that made up about
70% of the portfolio during the year to return their above-average yields. As a
result, the portfolio produced a 4.08% total return and performed about on a par
with the Lehman Brothers Government/Corporate Intermediate Bond Index.
The continuing economic expansion-now exceeding five years, the third longest
expansion in this century -- and the continuing muted inflation rate below 3%
helped enhance the performance of our corporate and asset-backed holdings in
particular. In light of the economic good news, investors were generally
inclined to discount credit risk in those securities.
Mortgage bonds' returns were strongest of all. Among other mortgage investments,
we registered gains in a fruitful niche: "whole-loan" mortgage bonds secured by
loans to consumers who have good but not top-drawer credit histories. Because of
their limited borrowing options, those consumers are less able to pay off their
mortgages early when rates fall. The bonds undergirding the mortgages, by not
being subject to redemption, can thus appreciate in price. Also, our emphasis on
discount mortgages provided, and still provides, protection from prepayment
risk; since discount mortgages sell at prices below par (hence, the discount
designation) but are redeemed at par, they contain a built-in financial
disincentive for prepayment.
The yield advantage of corporate, asset-backed, and mortgage securities over
Treasuries has shrunk to uncommonly small dimensions since March. For instance,
BBB-rated corporates now yield less than one percentage point more than 10-year
Treasuries, compared with an average spread of 1.91 percentage points for the
past 10 years.
In general, with yield spreads narrow across the board, it's difficult to find
compelling values in any sector now. Our weighting in Treasury securities, while
substantially lower than the market weighting, is higher than we would like it
to be; Treasuries' relatively low yields tend to be a drag on long-term
performance (and have in fact been a drag on the portfolio's initial results).
But we don't expect to replace many Treasuries with higher yielding corporate
and mortgage securities until the spreads widen and we get more compensation for
assuming the extra credit risk.
Fixed Income capitalized on a relatively stable bond market to produce an
initial positive return.
- --------------------------------------------
Total Return
For the period March 12 - October 31, 1996
- --------------------------------------------
4.08%
- --------------------------------------------
Growth of $10,000: Fixed Income*
Lehman Government/
Fixed Corporate Intermediate
Income Index
------ ----------------------
3/12/96 $10,000 $10,000
4/30/96 $ 9,948 $ 9,965
5/31/96 $ 9,929 $ 9,957
6/30/96 $10,031 $10,063
7/31/96 $10,062 $10,093
8/31/96 $10,064 $10,101
9/30/96 $10,219 $10,241
10/31/96 $10,396 $10,422
*Past performance is not necessarily indicative of future results. Total return
assumes reinvestment of income and capital gains, as well as no reductions for
taxes
The Lehman Brothers Government/Corporate Intermediate Bond Index is an unmanaged
index and a theoretical measure of bond-market performace rather than an actual
available investment.
<PAGE>
We are finding the best relative values now in commercial mortgage-backed
securities, which recorded good returns recently and are likely to continue
doing so, in our estimation, as long as the economy doesn't slip into a
recession. These bonds, linked to commercial mortgage loans for businesses such
as hotels and retail establishments, contain staunch prepayment prohibitions.
Also, we believe as the commercial mortgage-backed market keeps attracting new
investors, its performance should improve.
Our holdings continue to maintain a high average credit quality and an average
duration slightly shorter than that of the benchmark. We remain a bit bearish
about rates, anticipating that the 30-year Treasury yield may climb to about 7%
early in 1997, so our conservative duration should help limit interest-rate
risk. Our intermediate-maturity average presents an appealing risk/reward
tradeoff now; for example, the three-year Treasury captures 88% of the yield of
long-term maturities but with much less potential volatility, according to our
analysis. Overall, we expect the bond market to remain in a trading range over
the next six months, with the interest payments contributing most of the total
return -- a circumstance that would be to the advantage of the portfolio, with
its yield premium to the index.
Portfolio Manager
Gary A. Reed
(Photo of Gary A. Reed goes here)
Has managed the portfolio since its inception...joined Delaware in
1989...formerly served as vice president and manager of the fixed-income
department at Irving Trust Company...18 years of investment experience...earned
a bachelor's degree at the University of Chicago and a master's degree in
economics at Columbia University...based in Philadelphia.
Fixed Income: Portfolio Profile
October 31, 1996
Average yield to maturity 6.48%
Effective duration 3.3 years
Average credit quality AA
Total net assets $10.5 million
Asset composition (based on total net assets) Corporate bonds 25.1% Treasury
bonds 24.7% Mortgage-backed bonds 21.0% Asset-backed bonds 13.3%
Collateralized mortgage obligations 11.6% Cash equivalents and other assets
4.3%
Number of holdings 49
Top 10 holdings
1. U.S. Treasury Note, 5.875%, 06/30/00
2. U.S. Treasury Note, 6.375%, 06/30/97
3. U.S. Treasury Note, 5.875%, 04/30/98
4. Federal Home Loan Mortgage Corporation, 7.00%, 04/01/26
5. Government National Mortgage Association, 9.00%, 02/15/17
6. Travelers/Aetna Property & Casualty, 6.75%, 04/15/01
7. Ford Motor Credit, 7.00%, 09/25/01
8. Federal National Mortgage Association, 7.00%, 02/01/24
9. Federal Home Loan Mortgage Corporation, 6.00%, 04/01/11
10. Government National Mortgage Association, 9.50%, 09/15/19
<PAGE>
International Equity:
Seven Points of Outperformance
With a gain of 10.47%, the major foreign stock markets in aggregate, as
represented by the Morgan Stanley Capital International EAFE-Stock Index, had an
average year in fiscal 1996. The International Equity Portfolio, in contrast,
had a superlative one: its return of 18.12% beat the index by more than seven
percentage points.
Three factors contributed to the portfolio's outperformance:
* Successful stock selection. We picked winning stocks in all sorts of markets:
a weak market, Japan (e. g., Eisai and Matsushita Electric), a strong Asian
market, Malaysia (Sime Darby Berhad), and European markets that were at or near
record highs by the end of the fiscal year, Germany (Bayer and Continental),
Spain (BCH and Telefonica de Espana), the Netherlands (Royal Dutch Petroleum),
and the United Kingdom (RTZ, GKN, and Cable & Wireless).
* Successful currency management. Buying a foreign stock means, in effect,
buying the currency the stock trades in. Owning a German stock like Siemens, for
instance, involves owning a certain number of deutsche marks. Therefore, if the
deutsche mark falls in value relative to the dollar, the value of the Siemens
investment falls as well. That's precisely what happened in fiscal 1996, as an
overvalued deutsche mark -- and other currencies as well -- declined versus the
dollar. To protect our returns from eroding, we hedged certain foreign
currencies to lessen our exposure to them; in effect, we traded more of our
holdings for dollars, locking in the exchange rate at the time, so that the
values of our investments wouldn't be severely hurt by all the currency
movements. In short, currency management helped preserve the gains from our
stock selections in Europe and Japan.
* Underweighting (in relation to the EAFE index weighting) or avoiding Far
Eastern markets that performed poorly. Indeed, much of the portfolio's
outperformance can be attributed to an underweighting in the poorly performing
Japanese market. Also, we had only modest holdings in Indonesia and Singapore,
where returns were flat, and no investments at all in South Korea and Thailand,
which suffered double-digit losses.
On the negative side of the ledger, the portfolio's performance was adversely
affected by low exposure to several of the strongest European markets, Denmark,
Finland, and Sweden, which benefited from blossoming economies and improved
trade balances.
From the outset, International Equity's returns have been consistently better
than those of the major foreign markets in aggregate
<PAGE>
- ----------------------------------
Annualized Total Return
Periods ending October 31, 1996
- ----------------------------------
One year Since Inception
18.12% 12.03%
- ----------------------------------
Growth of $10,000: International Equity*
Morgan Stanley
International EAFE --
International Equity Stock Index
-------------------- ---------------------
2/4/92 $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 $13,155.66
7/30/95 $14,832.06 $13,974.73
8/30/95 $14,633.31 $13,441.60
9/30/95 $14,744.52 $13,704.11
10/30/95 $14,511.56 $13,335.75
11/30/95 $14,645.06 $13,706.75
12/30/95 $15,131.28 $14,258.99
1/30/96 $15,707.78 $14,317.60
2/29/96 $15,718.78 $14,365.99
3/30/96 $15,949.84 $14,671.12
4/30/96 $16,434.72 $15,097.61
5/30/96 $16,319.68 $14,819.82
6/30/96 $16,388.22 $14,903.25
7/30/96 $15,890.02 $14,467.63
8/30/96 $16,260.25 $14,499.31
9/30/96 $16,816.35 $14,884.56
10/30/96 $17,140.91 $14,732.74
* 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-Stock Index is an unmanaged index
and a theoretical measure of 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.
<PAGE>
Our dividend-discount analysis, which measures the inflation-adjusted return
potential of markets over the long term, indicates that the best values are now
to be found in the United Kingdom, Australia, New Zealand, and Indonesia. In
continental Europe, we remain overweighted in Belgium, France, the Netherlands,
and Spain. Foreign stocks are selling at the high end of their historic
valuation range. We believe as long as inflation remains moderate, such a
valuation level is justified, and the foreign markets generally can advance
further if economies and corporate earnings improve. The one notable exception
is the Japanese market; even with an improving economic backdrop, Japan remains
overvalued, in our analysis.
The portfolio's yield of 3.32% -- a premium of 1.1 percentage points over that
of the index -- should provide a margin of safety if foreign economies and
equity markets weaken. Our currency-management strategies continue to focus on
hedging the yen and some "core" European currencies to protect dollar-based
returns.
Portfolio Manager
Timothy W. Sanderson
(Photo of Timothy W. Sanderson goes here)
Has managed the portfolio since its inception...joined Delaware in 1990...
previously was analyst and senior portfolio manager at Hill Samuel Investment
Advisers Ltd., where he managed international institutional portfolios...17
years of investment experience...graduate of University College, Oxford,
England...based in London.
<PAGE>
International Equity:
Portfolio Profile
October 31, 1996
Price/earnings ratio 20.8
Annual equity dividend yield at
market value 3.32%
Four-year beta 0.73
Annual turnover 8%
Total net assets $299.9 million
Asset composition (based on total net assets) Common stocks 97.0% Cash
equivalents and other assets 3.0%
Geographic composition
28.9% United Kingdom
12.6% Japan
11.3% Australia
7.9% France
7.1% Netherlands
6.4% Spain
5.8% Germany
4.5% New Zealand
3.5% Belgium
3.1% Hong Kong
1.6% Indonesia
1.3% Philippines
1.2% Canada
1.0% Malaysia
0.8% Singapore
3.0% Cash and other
Number of holdings 51
Top 10 holdings
1. Powergen plc (U.K.)
2. National Australia Bank (Australia)
3. Cable & Wireless plc (U.K.)
4. RTZ plc (U.K.)
5. Electrabel SA (Belgium)
6. Great Universal Stores plc (U.K.)
7. Bass plc (U.K.)
8. Boots plc (U.K.)
9. Telecom Corp. of New Zealand (New Zealand)
10. Matsushita Electric (Japan)
<PAGE>
Labor Select International Equity:
A Fast Start Out of the Gate
In its first 10-and-a-half months of operation, The Labor Select International
Equity Portfolio got off to a strong start: it delivered a return of 17.97% --
an edge of more than 14 percentage points over the Morgan Stanley Capital
International EAFE-Stock Index results. Advantageous choices of markets,
securities, and currency hedges largely account for the portfolio's showing.
A major constraint on the performance of the foreign markets in aggregate was
the continued weakness in the Japanese market, which accounts for about 40% of
the index. In contrast, our own Japanese holdings amounted to less than 15% of
the portfolio at any given time, an underweighting that enhanced our
performance. Moreover, the markets to which we did make substantial commitments
generally did well: Australia, Hong Kong, Malaysia, Germany, Spain, and the
United Kingdom. These commitments amounted to about 55% of the portfolio as of
October 31, versus index weightings of only about 32%. Although our market
weightings generally proved propitious, results would have been further enhanced
had we been invested substantially in three particularly robust markets:
Denmark, Finland, and Sweden.
Some of Labor Select International Equity's individual holdings that turned in
good gains included GKN, a diversified British industrial company; National
Australia Bank, whose cash flow and profits improved markedly; Electrabel SA, a
Belgian utility with an attractive yield; Canon Electronics, a diversified
Japanese technology company; and Elf Aquitaine, a French energy company that
benefited from the recent rise in oil prices and the strong performance of the
global energy sector.
The advance of the dollar against most currencies diminished local returns in
fiscal 1996. For instance, the dollar's gain versus the mark pared the German
stock market's double-digit local return by about five percentage points in
dollar terms. When foreign currencies move in unfavorable directions, as was
largely the case this year, we seek to manage the portfolio's currency exposure
to protect returns. So we maintained a carefully monitored high exposure to the
dollar-bloc currencies (the U.S., Australia, and New Zealand dollars, which
gained in value) and defensively hedged into dollars our holdings in Europe
(whose currencies generally weakened).
With its strong early performance, Labor Select International Equity has created
impressive value for shareholders
- ----------------------------------------------------
Total Return
For the period December 19, 1995-October 31, 1996
- ----------------------------------------------------
17.97%
- ----------------------------------------------------
Growth of $10,000: Labor Select International Equity*
Labor Select Morgan Stanley
International Capital International
Equity EAFE -- Stock Index
--------------- ---------------------
12/19/95 $10,000 $10,000
1/31/96 $10,322 $10,041
2/29/96 $10,371 $10,075
3/31/96 $10,546 $10,289
4/30/96 $10,781 $10,588
5/31/96 $10,752 $10,393
6/30/96 $10,752 $10,452
7/31/96 $10,673 $10,146
8/31/96 $10,889 $10,169
9/30/96 $11,252 $10,439
10/31/96 $11,498 $10,322
<PAGE>
Since the return potential of the foreign markets in aggregate doesn't appear
quite as attractive to us as it did earlier, we suspect the key to successful
investing over the next 12 months may be discerning stock selection; the winners
are likely to be those that offer either good value or improving fundamentals.
To be sure, some world-class companies are still selling at below-average
prices, and market valuations overseas are somewhat lower than in the U.S.
For our part, we continue to overweight the markets of the United Kingdom,
Australia, and New Zealand, as well as the continental European markets of
Belgium, France, Germany, the Netherlands, and Spain, where our analysis
indicates that select stocks are cheap according to the value criterion that we
care about most: prices are low in relation to the issuing companies' likely
future dividend-income flows. At the same time, we continue to markedly
underweight Japan, where stocks are selling at an average multiple of more than
100, a distortion caused by overvaluation and weak earnings.
Our view of currency valuations remains basically unchanged. We believe most
European currencies and the yen are overvalued versus the dollar, so we are
defensively hedging our exposure to them back to the dollar and are unhedged in
the still-undervalued dollar-bloc currencies.
Portfolio Manager
Clive A. Gillmore
Has managed the portfolio since its inception...joined Delaware in 1990...
previously was Pacific Basin equity analyst and senior portfolio manager at Hill
Samuel Investment Advisers Ltd...14 years of investment experience...graduate of
Warwick University, England...based in London.
Labor Select International Equity:
Portfolio Profile
October 31, 1996
Price/earnings ratio 15.7
Annual equity dividend yield at
market value 3.42%
Annual turnover 7%
Total net assets $23.2 million
Asset composition (based on total net assets) Common stocks 95.1% Cash
equivalents and other assets 4.9%
Geographic composition
29.0% United Kingdom
11.5% Japan
11.4% Australia
7.5% Netherlands
7.1% France
6.4% Germany
6.4% Spain
5.6% New Zealand
4.3% Belgium
3.1% Hong Kong
1.5% Canada
1.3% Singapore/Malaysia
4.9% Cash and other
Number of holdings 45
Top 10 holdings
1. National Australia Bank (Australia)
2. Telecom Corp. of New Zealand (New Zealand)
3. Electrabel SA (Belgium)
4. GKN plc (U.K.)
5. Powergen plc (U.K.)
6. Great Universal Stores plc (U.K.)
7. Elf Aquitaine (France)
8. Canon Electronics (Japan)
9. Royal Dutch Petroleum (Netherlands)
10. Brambles Industries (Australia)
<PAGE>
Global Fixed Income:
Some Caution After A Strong Year
Adroit currency management and selection of markets in the first half. A decline
in interest rates that raised bond prices worldwide in the second half. That
combination powered The Global Fixed Income Portfolio to a return of 16.40% for
fiscal 1996, a return that exceeded the Salomon Brothers World Government Bond
Index by more than 11 percentage points.
The stage for the portfolio's outperformance was set as far back as early 1995,
when many oversold global bond markets raised yields to attractive levels and
many currencies veered to extremes of valuation -- for instance, too high in the
case of the Japanese yen, too low for the Italian lira. Since then, markets and
currencies have been moving to more rational values.
In local currency terms, the markets in aggregate advanced moderately during the
year, due mainly to subpar performance by the three largest markets -- the U.S.,
Japan, and Germany. The markets that shone most brightly were those of nations
that had suffered from investor worries about their inflation outlook or their
debt levels -- Italy, Spain, Sweden, Canada, and Australia, all of which we were
overweighted in.
Currency moves tended to exaggerate the pattern of local returns, with the
dollar up about 3.7% for the fiscal year, as measured by the J. P. Morgan U.S.
Dollar Index. Italy benefited enormously from a stronger lira, and its market
returned more than 20% in dollar terms, while a rising Australian dollar
elevated the Australian market's results almost as dramatically. In contrast,
the yen fell 10%, which helped produce a 5% decline in the Japanese market in
dollar terms, while the German mark's decline reduced Germany's dollar return to
about zero.
The movement of markets and currencies towards fairer value has been a long
process that by the end of the fiscal year was substantially completed, in our
judgment. During the year, economic growth and inflation worldwide were muffled,
with growth in the money supply counterbalanced by restraint in government
spending -- in all, a reasonably bond-friendly climate. We think that climate
still prevails; we don't foresee any economic recoveries threatening to get out
of hand and accelerating inflation significantly.
Even though diverging monetary and fiscal policies have produced stable
conditions, we think the tension makes
Active management of securities and currencies has been instrumental to Global
Fixed Income's ability to beat the world bond market as a whole
- ------------------------------------------
Annualized Total Return
Periods ending October 31, 1996
- ------------------------------------------
One Year Since Inception
16.40% 13.38%
- ------------------------------------------
<PAGE>
Growth of $10,000: Global Fixed Income*
Salomon Brothers
World Government
Global Fixed Index Bond Index
------------------ ----------------
11/30/92 $10,000.00 $10,000.00
12/31/92 $10,110.00 $10,060.00
1/31/93 $10,259.63 $10,234.04
2/28/93 $10,539.72 $10,435.65
3/31/93 $10,749.46 $10,596.36
4/30/93 $10,902.10 $10,819.94
5/31/93 $11,067.81 $10,928.14
6/30/93 $11,098.80 $10,905.19
7/31/93 $11,059.95 $10,937.91
8/31/93 $11,426.04 $11,264.95
9/30/93 $11,541.44 $11,399.00
10/31/93 $11,733.03 $11,379.62
11/30/93 $11,690.79 $11,297.69
12/30/93 $12,047.36 $11,393.81
1/30/94 $12,306.38 $11,485.57
2/28/94 $12,114.40 $11,410.57
3/30/94 $11,927.84 $11,394.18
4/30/94 $11,987.48 $11,407.28
5/30/94 $11,929.94 $11,307.15
6/30/94 $11,630.49 $11,470.27
7/30/94 $11,660.73 $11,561.65
8/30/94 $11,818.15 $11,521.60
9/30/94 $11,829.97 $11,604.98
10/30/94 $11,976.66 $11,791.03
11/30/94 $12,086.85 $11,629.01
12/30/94 $12,196.84 $11,661.05
1/30/95 $12,184.64 $11,905.72
2/28/95 $12,308.93 $12,210.47
3/30/95 $12,358.16 $12,935.76
4/30/95 $12,607.80 $13,175.35
5/30/95 $13,033.94 $13,546.00
6/30/95 $13,058.70 $13,625.73
7/30/95 $13,335.55 $13,657.76
8/30/95 $13,612.93 $13,188.44
9/30/95 $13,853.88 $13,482.54
10/30/95 $14,057.53 $13,582.31
11/30/95 $14,236.06 $13,735.79
12/30/95 $14,509.39 $13,880.02
1/30/96 $14,770.56 $13,709.30
2/29/96 $14,646.49 $13,639.38
3/30/96 $14,702.15 $13,620.45
4/30/96 $14,896.21 $13,565.96
5/30/96 $14,909.62 $13,568.68
6/30/96 $15,104.94 $13,675.87
7/30/96 $15,342.08 $13,938.45
8/30/96 $15,552.27 $13,992.81
9/30/96 $15,860.21 $14,050.18
10/30/96 $16,366.15 $14,312.92
* Past performance is not necessarily indicative of future results. Total return
assumes reinvestment of income and capital gains, as well as no reductions for
taxes.
The Salomon Brothers World Government Bond Index is an unmanaged index and a
theoretical measure of bond-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.
<PAGE>
for a kind of unreliable stability that dictates a somewhat defensive strategy
for Global Fixed Income in 1997. Foreign-bond yields in aggregate have declined
to levels approaching their 1994 lows, and their prospective real yields have
also diminished. As a result, the return potential of global bond markets is
less promising than it was 12 months ago, in our judgment. In response to our
concern that the markets may relinquish some of their recent gains in 1997, we
shortened the portfolio's average duration to a point slightly below the index.
We continue to believe the best opportunities reside in these markets:
Australia, Canada, New Zealand, and the United Kingdom; they offer good after-
inflation return potential and a superior track record of debt stability. Japan
still presents poor relative value, in our judgment, and we have no investments
there.
Since our purchasing-power parity analysis of currencies continues to indicate
that the dollars of the U.S., Australia, and New Zealand are undervalued, we are
maintaining exposure to them. We are hedging most European currencies, which we
believe still possess a degree of overvaluation, to protect against anticipated
declines versus the dollar.
Potfolio Manger
Ian G. Sims
(Photo of Ian G. Sims goes here)
Has managed the portfolio since its inception...joined Delaware in
1990...formerly was a senior fixed-income and currency manager at Hill Samuel
Investment Advisers Ltd...graduate of the University of Leicester and holds
postgraduate degree in statistics from the University of Newcastle-Upon-Tyne in
the United Kingdom...based in London.
Global Fixed Income:
Portfolio Profile
October 31, 1996
Average yield to maturity 6.70%
Effective duration 5.1 years
Average credit quality AA1
Annual turnover 63%
Total net assets $252.1 million
Asset composition (based on total net assets) Government bonds 61.7% Corporate
bonds 32.6% Cash equivalents and other assets 5.7%
Geographic composition
15.1% New Zealand
11.9% Canada
10.9% Denmark
10.3% United Kingdom
9.6% Germany
9.6% United States
8.5% Spain
8.1% Australia
4.1% Sweden
2.5% Italy
2.1% Austria
1.7% Netherlands
5.7% Cash and other
Number of holdings 63
Top 10 holdings
1. U.S. Treasury Notes, 7.875%, 11/15/04
2. Kingdom of Denmark, 8.00%, 03/15/06
3. Government of New Zealand, 8.00%, 11/15/06
4. Government of New Zealand, 8.00%, 02/15/01
5. Government of New Zealand, 8.00%, 04/15/04
6. Spanish Government, 10.50%, 10/30/03
7. U.S. Treasury Notes, 7.50%, 11/15/01
8. Government of Canada, 9.00%, 12/01/04
9. Government of New Zealand, 6.50%, 02/15/00
10. Badenwurt L-Finance NV, 6.625%, 08/20/03
<PAGE>
Delaware Pooled Trust, Inc.: The Defensive Equity Portfolio
Statement of Net Assets
October 31, 1996
Number Market
of Shares Value
- ---------------------------------------------------------------
COMMON STOCK: 94.85%
- ---------------------------------------------------------------
Aerospace and Defense: 2.53%
- ---------------------------------------------------------------
AMP 25,100 $ 850,263
General Dynamics 12,400 850,950
---------
1,701,213
---------
- ---------------------------------------------------------------
Automobiles and Auto Parts: 3.99%
- ---------------------------------------------------------------
Chrysler 25,200 847,350
Ford Motor 28,900 903,125
General Motors 17,200 926,650
---------
2,677,125
---------
- ---------------------------------------------------------------
Banking, Finance, and Insurance: 20.79%
- ---------------------------------------------------------------
AmSouth Bancorporation 22,000 1,020,250
American General 17,200 640,700
AON 18,500 1,068,375
Bank of Boston 20,600 1,318,400
Chase Manhattan 11,300 968,975
CIGNA 9,600 1,252,800
Crestar Financial 14,800 910,200
First Chicago NBD 22,253 1,134,903
First Union 11,200 814,800
ITT Hartford Group 17,700 1,115,100
Mercantile Bancorp 16,300 808,888
Signet Banking 1,200 34,800
St. Paul 20,800 1,131,000
Summit Bancorp 29,600 1,209,900
U.S. Bancorp 13,500 539,156
----------
13,968,247
----------
- ---------------------------------------------------------------
Cable, Media, and Publishing: 1.63%
- ---------------------------------------------------------------
McGraw-Hill 23,400 1,096,875
----------
1,096,875
----------
- ---------------------------------------------------------------
Chemicals: 5.00%
- ---------------------------------------------------------------
DuPont (E.I.) deNemours 19,539 1,812,242
Imperial Chemical ADR 17,700 898,275
Rhone-Poulenc SA ADR 7,000 208,250
Witco 14,200 440,200
---------
3,358,967
---------
- ---------------------------------------------------------------
Consumer Products: 1.05%
- ---------------------------------------------------------------
Maytag 35,400 703,575
-------
703,575
-------
<PAGE>
Number Market
of Shares Value
- ---------------------------------------------------------------
Electronics and Electrical: 3.83%
- ---------------------------------------------------------------
Eaton 12,700 $ 758,825
Thomas & Betts 23,400 991,575
Xerox 17,800 825,475
---------
2,575,875
---------
- ---------------------------------------------------------------
Energy: 10.65%
- ---------------------------------------------------------------
British Petroleum ADR 9,274 1,192,868
Mobil 12,700 1,482,725
Occidental Petroleum 42,500 1,041,250
Phillips Petroleum 28,600 1,172,600
Texaco 14,200 1,443,075
Williams 15,700 820,324
---------
7,152,842
---------
- ---------------------------------------------------------------
Food, Beverage, and Tobacco: 5.65%
- ---------------------------------------------------------------
Anheuser-Busch Companies 900 34,650
General Mills 19,000 1,085,375
Heinz (H.J.) 30,350 1,077,425
Philip Morris 9,600 889,200
RJR Nabisco Holdings 24,440 705,705
---------
3,792,355
---------
- ---------------------------------------------------------------
Health Care and Pharmaceuticals: 14.74%
- ---------------------------------------------------------------
American Home Products 14,574 892,658
Baxter International 18,900 786,712
Bristol-Myers Squibb 14,500 1,533,375
Glaxo Wellcome plc ADR 42,100 1,326,150
Pharmacia & Upjohn 36,100 1,299,600
SmithKline Beecham 28,600 1,791,075
Tambrands 5,800 247,225
Warner-Lambert 25,600 1,628,800
Zeneca Group plc ADR 4,900 399,350
---------
9,904,945
---------
- ---------------------------------------------------------------
Metals and Mining: 1.99%
- ---------------------------------------------------------------
Freeport-McMoRan Copper &
Gold Class B 36,700 1,114,763
Reynolds Metals 4,000 225,000
---------
1,339,763
---------
- ---------------------------------------------------------------
Packaging and Containers: 2.25%
- ---------------------------------------------------------------
Minnesota Mining
& Manufacturing 19,712 1,510,432
---------
1,510,432
---------
<PAGE>
Number Market
of Shares Value
- ---------------------------------------------------------------
Paper and Forest Products: 5.03%
- ---------------------------------------------------------------
Georgia-Pacific 12,700 $ 952,500
Temple-Inland 7,800 399,750
Union Camp 26,000 1,267,500
Weyerhaeuser 16,600 761,525
---------
3,381,275
---------
- ---------------------------------------------------------------
Retail: 2.26%
- ---------------------------------------------------------------
May Department Stores 14,400 682,200
Penney (J.C.) 15,900 834,750
---------
1,516,950
---------
- ---------------------------------------------------------------
Telecommunications: 7.86%
- ---------------------------------------------------------------
ALLTEL 24,182 737,551
BCE 28,500 1,311,000
BellSouth 30,400 1,238,800
Frontier 45,000 1,305,000
Royal PTT Nederland ADR 19,100 689,988
---------
5,282,339
---------
- ---------------------------------------------------------------
Transportation and Shipping: 2.97%
- ---------------------------------------------------------------
Conrail 11,600 1,103,450
Union Pacific 15,900 892,388
---------
1,995,838
---------
- ---------------------------------------------------------------
Utilities: 0.92%
- ---------------------------------------------------------------
AT&T 17,700 617,287
---------
617,287
---------
- ---------------------------------------------------------------
Miscellaneous: 1.71%
- ---------------------------------------------------------------
Pitney Bowes 20,500 1,145,437
---------
1,145,437
---------
- ---------------------------------------------------------------
Total Common Stock
(cost $54,447,586) 63,721,340
- ---------------------------------------------------------------
<PAGE>
Principal Market
Amount Value
- ---------------------------------------------------------------
REPURCHASE AGREEMENTS: 3.59%
- ---------------------------------------------------------------
With Chase Manhattan 5.50% 11/1/96
(dated 10/31/96, collateralized by
$1,121,000 U.S. Treasury Notes
7.75% due 12/31/99, market value
$1,207,130) $1,183,000 $1,183,000
With Prudential Securities 5.50% 11/1/96
(dated 10/31/96, collateralized by
$1,217,000 U.S. Treasury Notes
6.125% due 5/31/97, market value
$1,252,311) 1,227,000 1,227,000
- ---------------------------------------------------------------
Total Repurchase Agreements
(cost $2,410,000) 2,410,000
- ---------------------------------------------------------------
- ---------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 98.44%
(cost $56,857,586) $66,131,340
- ---------------------------------------------------------------
- ---------------------------------------------------------------
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES: 1.56% 1,047,544
- ---------------------------------------------------------------
- ---------------------------------------------------------------
NET ASSETS APPLICABLE TO
4,080,805 SHARES ($.01 PAR VALUE)
OUTSTANDING; EQUIVALENT
TO $16.46 PER SHARE: 100.00% $67,178,884
- ---------------------------------------------------------------
- ---------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31,1996:
- ---------------------------------------------------------------
Common stock, $.01 par value,
500,000,000 shares authorized
to the Fund with 50,000,000
shares allocated to this Portfolio $50,527,487
Accumulated undistributed income:
Net investment income 996,335
Net realized gain on investments 6,381,306
Net unrealized appreciation
of investments 9,273,756
- ---------------------------------------------------------------
Total Net Assets $67,178,884
- ---------------------------------------------------------------
See accompanying notes
<PAGE>
Delaware Pooled Trust, Inc.: The Aggressive Growth Portfolio
Statement of Net Assets
October 31, 1996
Number Market
of Shares Value
- ---------------------------------------------------------------
COMMON STOCK: 93.02%
- ---------------------------------------------------------------
Banking, Finance, and Insurance: 9.30%
- ---------------------------------------------------------------
Aames Financial 9,050 $ 403,856
Advanta Class B 4,700 220,313
AMBAC 2,100 131,250
Blanch (E.W.) Holdings 11,400 235,125
CMAC Investment 5,800 400,925
MBIA 4,600 407,675
The Money Store 12,600 327,600
*Oxford Health Plans 4,200 191,363
SEI 3,200 64,400
United Healthcare 5,100 193,163
*WFS Financial 3,680 76,820
---------
2,652,490
---------
- ---------------------------------------------------------------
Cable, Media, and Publishing: 1.68%
- ---------------------------------------------------------------
*International Family
Entertainment Class B 14,575 260,528
Reynolds & Reynolds Class A 8,300 218,913
---------
479,441
---------
- ---------------------------------------------------------------
Computers and Technology: 18.84%
- ---------------------------------------------------------------
*3Com 4,300 291,049
*Affiliated Computer Services A 10,700 580,475
*Bisys Group 15,900 593,269
*BMC Software 6,000 497,250
*Cascade Communications 4,800 348,900
Dallas Semiconductor 7,500 150,000
*Documentum 2,600 95,875
*DST Systems 2,800 86,100
First Data 6,984 556,974
*HCIA 10,400 291,200
*Informix 5,900 130,906
*Ingram Micro A 3,800 68,400
*Netscape Communications 600 26,625
*Pure Atria 14,000 380,625
*Rational Software Corporation 6,400 244,400
Shared Medical Systems 3,200 154,000
*Sterling Commerce 6,474 182,081
*Sterling Software 3,500 113,750
*StorMedia Class A 13,900 159,850
*Tech Data 9,400 241,463
*Wind River Systems 4,300 181,138
---------
5,374,330
---------
<PAGE>
Number Market
of Shares Value
- ---------------------------------------------------------------
Consumer Products: 1.36%
- ---------------------------------------------------------------
Callaway Golf 10,900 $ 333,813
*Oakley 3,700 55,038
----------
388,851
----------
- ---------------------------------------------------------------
Electronics and Electrical: 4.14%
- ---------------------------------------------------------------
*Gartner Group Class A 11,000 341,000
*LSI Logic 5,500 145,750
*Microchip Technology 5,900 213,138
*Newbridge Networks 4,900 154,963
*Premisys Communications 4,000 199,500
*Symbol Technologies 1,600 71,800
*Xilinx 1,700 55,569
---------
1,181,720
---------
- ---------------------------------------------------------------
Energy: 0.23%
- ---------------------------------------------------------------
*Petroleum Geo-Services
A/S ADR 1,900 64,719
---------
64,719
---------
- ---------------------------------------------------------------
Environmental Services: 4.39%
- ---------------------------------------------------------------
*Philip Environmental 26,400 273,900
*United Waste Systems 11,200 383,600
*USA Waste Services 18,570 594,240
---------
1,251,740
---------
- ---------------------------------------------------------------
Food, Beverage, and Tobacco: 2.78%
- ---------------------------------------------------------------
*Boston Chicken 8,200 297,763
*Foodmaker 24,800 241,800
*Landry's Seafood Restaurants 7,600 152,950
*Performance Food Group 6,550 99,478
---------
791,991
---------
- ---------------------------------------------------------------
Health Care and Pharmaceuticals: 18.19%
- ---------------------------------------------------------------
*Access Health 4,150 135,913
*Apria Healthcare Group 11,700 223,763
*ClinTrials 4,800 179,100
Dentsply International 6,100 257,344
*Dura Pharmaceuticals 9,800 339,325
*Genetics Institute 2,100 137,550
HBO 6,688 402,952
*HealthSouth 17,900 671,250
*Health Management Associates
Class A 30,538 671,825
*Interim Services 6,700 268,000
*MedPartners 14,400 304,200
*NBTY 12,200 189,100
Olsten 10,106 202,120
<PAGE>
Number Market
of Shares Value
- ---------------------------------------------------------------
*Orthodontic Centers of America 12,800 $ 182,400
*Phycor 4,500 138,656
*Physician Reliance Network 8,000 46,750
*Quorum Health Group 11,000 295,625
*Value Health 5,664 98,412
*Vitalink Pharmacy 5,800 133,400
*Vivra 9,750 310,781
---------
5,188,466
---------
- ---------------------------------------------------------------
Leisure, Lodging, and Entertainment: 8.14%
- ---------------------------------------------------------------
*Circus Circus Enterprises 3,450 119,025
*HFS 12,000 879,000
*Interstate Hotels 5,800 156,600
La Quinta Inns 9,000 180,000
*Lone Star Steakhouse/Saloon 12,900 329,756
*Mirage Resorts 15,700 345,400
*Prime Hospitality 8,300 126,575
*Sabre Group Holdings 3,300 100,650
*Station Casinos 7,700 85,663
---------
2,322,669
---------
- ---------------------------------------------------------------
Retail: 9.32%
- ---------------------------------------------------------------
*CompUSA 3,800 175,750
*General Nutrition 23,100 424,463
Home Depot 4,000 219,000
*Kohl's 9,500 342,000
*Micro Warehouse 7,000 161,875
*Saks Holdings 8,400 294,000
St. John Knits 4,200 192,150
*Stage Stores 4,800 89,400
*Staples 21,113 395,859
Talbots 6,000 171,000
*United Auto Group 400 13,750
*Value City Department Stores 14,100 179,775
---------
2,659,022
---------
- ---------------------------------------------------------------
Telecommunications: 1.52%
- ---------------------------------------------------------------
*Octel Communications 2,600 41,438
*Tellabs 4,600 391,575
---------
433,013
---------
- ---------------------------------------------------------------
Textile, Apparel, and Furniture: 5.45%
- ---------------------------------------------------------------
*Designer Holdings Ltd. 5,800 110,925
Gucci Group N.V. 8,500 586,500
*Nine West Group 5,300 264,338
*Tommy Hilfiger 9,600 499,200
Warnaco Group Class A 3,800 94,525
---------
1,555,488
---------
- ---------------------------------------------------------------
Transportation and Shipping: 1.07%
- ---------------------------------------------------------------
*Illinois Central 9,450 305,944
---------
305,944
---------
<PAGE>
Number Market
of Shares Value
- ---------------------------------------------------------------
Utilities: 2.24%
- ---------------------------------------------------------------
*AES 14,548 $ 638,293
---------
638,293
---------
- ---------------------------------------------------------------
Miscellaneous: 4.37%
- ---------------------------------------------------------------
*ADT Limited 24,200 477,950
*CUC International 21,300 521,850
*Personnel Group of America 6,600 182,325
*Prime Service 2,700 63,450
---------
1,245,575
---------
- ---------------------------------------------------------------
Total Common Stock
(cost $20,695,981) 26,533,752
- ---------------------------------------------------------------
- ---------------------------------------------------------------
WARRANTS: 0.00%
*AES Warrants 16 308
---------
308
---------
- ---------------------------------------------------------------
Total Warrants (cost $0 ) 308
- ---------------------------------------------------------------
Principal
Amount
- ---------------------------------------------------------------
REPURCHASE AGREEMENTS: 6.87%
- ---------------------------------------------------------------
With Chase Manhattan
5.50% 11/1/96 (dated
10/31/96, collateralized
by $614,000 U.S.
Treasury Notes 5.50%
due 11/15/98, market
value $626,353) $614,000 614,000
With Prudential Securities
5.50% 11/1/96 (dated
10/31/96, collateralized
by $667,000 U.S.
Treasury Notes 6.125%
due 5/31/97, market
value $686,980) 673,000 673,000
With PaineWebber
5.52% 11/1/96 (dated
10/31/96, collateralized
by $686,000 U.S.
Treasury Notes 5.875%
due 10/31/98, market
value $687,293) 673,000 673,000
- ---------------------------------------------------------------
Total Repurchase Agreements
(cost $1,960,000) 1,960,000
- ---------------------------------------------------------------
<PAGE>
- ---------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 99.89%
(cost $22,655,981) $28,494,060
- ---------------------------------------------------------------
- ---------------------------------------------------------------
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES: 0.11% 31,484
- ---------------------------------------------------------------
- ---------------------------------------------------------------
NET ASSETS APPLICABLE TO
1,958,038 SHARES ($.01 PAR VALUE)
OUTSTANDING; EQUIVALENT
TO $14.57 PER SHARE: 100% $28,525,544
- ---------------------------------------------------------------
- ---------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 1996:
- ---------------------------------------------------------------
Common stock $.01 par value,
500,000,000 shares authorized
to the Fund with 50,000,000
shares allocated to this Portofolio $18,231,407
Accumulated undistributed income:
Net investment loss (49,357)
Net realized gain on investments 4,505,415
Net unrealized appreciation of
investments 5,838,079
- ---------------------------------------------------------------
Total Net Assets $28,525,544
- ---------------------------------------------------------------
* Non-income producing security for the year ended October 31, 1996.
See accompanying notes
<PAGE>
Delaware Pooled Trust, Inc.:
The Real Estate Investment Trust Portfolio
Statement of Net Assets
October 31, 1996
Number Market
of Shares Value
- ---------------------------------------------------------------
COMMON STOCK: 98.13%
- ---------------------------------------------------------------
Health Care REITs: 8.81%
- ---------------------------------------------------------------
American Health Properties 24,000 $ 516,000
Health Care Property Investors 29,300 1,029,163
Nationwide Health Properties 35,000 787,500
---------
2,332,663
---------
- ---------------------------------------------------------------
Hotels/Diversified REITs: 14.54%
- ---------------------------------------------------------------
Colonial Properties Trust 32,500 861,250
Felcor Suite Hotels 25,000 818,750
Glenborough Realty Trust 38,500 539,000
Patriot American Hospitality 31,000 1,088,875
Starwood Lodging Trust 12,000 540,000
---------
3,847,875
---------
- ---------------------------------------------------------------
Mall REITs: 3.85%
- ---------------------------------------------------------------
Simon DeBartolo Group 38,600 1,018,075
---------
1,018,075
---------
- ---------------------------------------------------------------
Manufactured Housing REITs: 6.19%
- ---------------------------------------------------------------
ROC Communities 32,000 780,000
Sun Communities 30,000 858,750
---------
1,638,750
---------
- ---------------------------------------------------------------
Multifamily REITs: 14.17%
- ---------------------------------------------------------------
Ambassador Apartments 40,000 810,000
Camden Property Trust 28,000 763,000
Equity Residential Properties 23,300 856,275
Security Capital Pacific Trust 43,500 978,750
Summit Property 17,500 343,438
---------
3,751,463
---------
- ---------------------------------------------------------------
Office/Industrial REITs: 28.01%
- ---------------------------------------------------------------
*Arden Realty Group 35,000 791,875
Cali Realty 41,000 1,101,875
CarrAmerica Realty 27,000 678,375
Crescent Real Estate 20,000 835,000
Duke Realty Investments 24,000 828,000
First Industrial Realty 32,000 828,000
Parkway (Private Placement) 29,500 593,785
*Prentiss PropertiesTrust 42,000 866,250
Reckson Associates Realty 25,000 890,625
---------
7,413,785
---------
<PAGE>
Number Market
of Shares Value
- ---------------------------------------------------------------
Retail Strip Center REITs: 14.76%
- ---------------------------------------------------------------
Alexander Haagen Properties 30,000 $ 442,500
Developers Diversified Realty 24,500 823,813
Excel Realty Trust 28,800 630,000
JDN Realty 25,500 637,500
Kimco Realty 25,200 727,650
Vornado Realty Trust 15,000 645,000
---------
3,906,463
---------
- ---------------------------------------------------------------
Self-Storage REITs: 7.80%
- ---------------------------------------------------------------
Sovran Self Storage 26,000 698,750
Storage Trust Realty 35,000 809,375
Storage USA 16,000 556,000
---------
2,064,125
---------
- ---------------------------------------------------------------
Total Common Stock
(cost $23,709,684) 25,973,199
- ---------------------------------------------------------------
Principal
Amount
- ---------------------------------------------------------------
REPURCHASE AGREEMENTS: 1.82%
- ---------------------------------------------------------------
With Chase Manhattan
5.50% 11/1/96 (dated
10/31/96, collateralized
by $151,000 U.S.
Treasury Notes 5.50%
due 11/15/98, market
value $154,029) $150,000 150,000
With Prudential Securities
5.50% 11/1/96 (dated
10/31/96, collateralized
by $164,000 U.S.
Treasury Notes 6.125%
due 5/31/97, market
value $168,938) 166,000 166,000
With PaineWebber
5.52% 11/1/96 (dated
10/31/96, collateralized
by $169,000 U.S.
Treasury Notes 5.875%
due 10/31/98, market
value $169,021) 166,000 166,000
- ---------------------------------------------------------------
Total Repurchase Agreements
(cost $482,000) 482,000
- ---------------------------------------------------------------
<PAGE>
- ---------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 99.95%
(cost $24,191,684) $26,455,199
- ---------------------------------------------------------------
- ---------------------------------------------------------------
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES: 0.05% 12,439
- ---------------------------------------------------------------
- ---------------------------------------------------------------
NET ASSETS APPLICABLE TO
2,119,032 SHARES ($0.01 PAR VALUE)
OUTSTANDING; EQUIVALENT TO
$12.49 PER SHARE: 100.00% $26,467,638
- ---------------------------------------------------------------
- ---------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 1996
- ---------------------------------------------------------------
Common Stock $0.01 par value,
500,000,000 shares authorized
to the Fund with 50,000,000
shares allocated to this Portfolio $21,379,740
Accumulated undistributed income:
Net investment income 1,168,630
Net realized gain on investments 1,655,753
Net unrealized appreciation
of investments 2,263,515
- ---------------------------------------------------------------
Total Net Assets $26,467,638
- ---------------------------------------------------------------
REIT: Real Estate Investment Trust
*Non-income producing security for the period ended October 31, 1996.
See accompanying notes
<PAGE>
Delaware Pooled Trust, Inc.: The Fixed Income Portfolio
Statement of Net Assets
October 31, 1996
Principal Market
Amount Value
- ---------------------------------------------------------------
CORPORATE BONDS: 25.05%
- ---------------------------------------------------------------
Ahmanson (H.F.),
6.35%, 09/01/98 $100,000 $ 100,500
BanPonce,
6.75%, 12/15/05 100,000 97,625
Chrysler Financial,
6.35%, 03/15/99 150,000 150,750
CNA Financial,
6.25%, 11/15/03 150,000 145,875
Credit Foncier de France,
8.00%, 01/14/02 85,000 89,675
Ford Motor Credit,
7.00%, 09/25/01 300,000 306,750
General Motors Acceptance
Corporation,
8.50%, 01/01/03 100,000 108,875
Greyhound Financial Medium-
Term Note,
8.79%, 11/15/01 100,000 109,250
Key Bank of Washington,
7.125%, 08/15/06 205,000 207,306
Kohl's,
6.70%, 02/01/06 100,000 97,125
Lehman Brothers Holdings,
6.84%, 09/25/98 150,000 151,500
MEPC Finance,
7.50%, 05/01/03 95,000 98,206
Morgan (J.P.),
6.25%, 12/15/05 125,000 120,469
News America Holdings,
9.125%, 10/15/99 80,000 85,800
Norwest,
6.125%, 10/15/00 150,000 149,063
Travelers/Aetna Property
& Casualty,
6.75%, 04/15/01 360,000 364,050
U.S. Bancorp,
8.125%, 05/15/02 125,000 134,375
Wal-Mart Stores,
5.875%, 10/15/05 125,000 117,656
- ---------------------------------------------------------------
Total Corporate Bonds
(cost $2,589,513) 2,634,850
- ---------------------------------------------------------------
<PAGE>
Principal Market
Amount Value
- ---------------------------------------------------------------
ASSET-BACKED SECURITIES: 13.32%
- ---------------------------------------------------------------
Advanta Series 93-1A2,
5.95%, 05/25/09 $ 82,475 $ 79,275
American Finance Home
Equity Series 92-5 A,
7.20%, 02/15/08 79,697 80,391
Case Equipment Loan
Trust Series 95-B A3,
6.15%, 09/15/02 100,000 100,480
FirstBank Auto Receivables
Grantor Trust Series 95-B A,
6.40%, 07/17/00 81,794 82,190
Ford Credit Auto Loan
Master Trust Series 95-1A,
6.50%, 08/15/02 100,000 100,610
IMC Home Equity Loan
Trust Series 95-3A2,
6.50%, 11/25/10 140,000 139,844
NationsCredit Grantor Trust
Series 96-1A,
5.85%, 09/15/11 258,469 254,695
Neiman Marcus Group
Credit Card Master Trust
Series 95-1 A,
7.60%, 06/15/03 150,000 156,150
Nomura Asset Securities
Series 95-2 2A2,
6.25%, 01/25/26 180,424 179,973
UCFC Home Equity Loan
Series 96-B1 A3,
7.30%, 04/15/14 125,000 127,138
World Omni Automobile
Lease Securitization Trust
Series 95-A,
6.05%, 11/25/01 100,000 100,254
- ---------------------------------------------------------------
Total Asset-Backed Securites
(cost $1,392,579) 1,401,000
- ---------------------------------------------------------------
<PAGE>
Principal Market
Amount Value
- ---------------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS: 11.60%
- ---------------------------------------------------------------
Asset Securitization Corporation
Series 96-D2 A1,
6.92%, 02/14/29 $197,827 $ 197,611
Series 95-MD4 A1,
7.10%, 08/13/29 197,423 199,582
Series 96-D3 A1,
7.21%, 10/13/26 130,000 133,067
Nomura Asset Securities
Series 95-MD3,
8.17%, 03/04/20 187,278 197,402
Residential Accredit Loans
Series 96-QS2 A3,
7.05%, 03/25/19 150,000 150,609
Series 96-QS3 AI3,
7.29%, 06/25/26 70,000 70,711
Series 96-QS2 A6,
7.45%, 04/25/23 135,000 135,422
Residential Asset Securitization
Trust Series 96-A4 A5,
7.50%, 09/25/26 135,000 135,844
- ---------------------------------------------------------------
Total Collateralized Mortgage Obligations
(cost $1,202,948) 1,220,248
- ---------------------------------------------------------------
- ---------------------------------------------------------------
MORTGAGE-BACKED SECURITIES: 21.01%
- ---------------------------------------------------------------
Federal Home Loan
Mortgage Corporation-Gold,
6.00%, 03/01/11 189,899 183,312
Federal Home Loan
Mortgage Corporation-Gold,
6.00%, 04/01/11 291,847 281,724
Federal Home Loan
Mortgage Corporation-Gold,
7.00%, 04/01/26 443,928 437,131
Federal National
Mortgage Association,
6.50%, 04/01/11 203,024 199,789
Federal National
Mortgage Association,
7.00%, 02/01/24 302,551 298,202
Federal National
Mortgage Association-Gold,
7.00%, 05/01/24 136,056 134,398
Government National
Mortgage Association,
9.00%, 02/15/17 369,413 395,041
Government National
Mortgage Association,
9.50%, 09/15/19 258,424 280,551
- ---------------------------------------------------------------
Total Mortgage-Backed Securities
(cost $2,184,126) 2,210,148
- ---------------------------------------------------------------
<PAGE>
Principal Market
Amount Value
- ---------------------------------------------------------------
U.S. TREASURY OBLIGATIONS: 24.68%
- ---------------------------------------------------------------
U.S. Treasury Notes,
5.875%, 04/30/98 $ 515,000 $ 516,782
U.S. Treasury Notes,
5.875%, 06/30/00 1,090,000 1,086,174
U.S. Treasury Notes,
6.375%, 06/30/97 835,000 840,319
U.S. Treasury Notes,
6.375%, 01/15/00 150,000 152,035
- ---------------------------------------------------------------
Total U.S. Treasury Obligations
(cost $2,572,291) 2,595,310
- ---------------------------------------------------------------
- ---------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 95.66%
(cost $9,941,457) $10,061,556
- ---------------------------------------------------------------
- ---------------------------------------------------------------
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES: 4.34% 456,009
- ---------------------------------------------------------------
- ---------------------------------------------------------------
NET ASSETS APPLICABLE TO
1,051,177 SHARES ($.01 PAR VALUE)
OUTSTANDING; EQUIVALENT TO
$10.01 PER SHARE: 100.00% $10,517,565
- ---------------------------------------------------------------
- ---------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 1996:
- ---------------------------------------------------------------
Common stock, $.01 par value,
500,000,000 shares authorized
to the Fund with 50,000,000
shares allocated to this Portfolio $10,437,850
Accumulated undistributed income:
Net realized loss on investments (40,384)
Net unrealized appreciation of investments 120,099
- ---------------------------------------------------------------
Total Net Assets $10,517,565
- ---------------------------------------------------------------
See accompanying notes
<PAGE>
Delaware Pooled Trust, Inc.:
The International Equity Portfolio
Statement of Net Assets
October 31, 1996
Number Market
of Shares Value
- ---------------------------------------------------------------
COMMON STOCK: 97.01%
- ---------------------------------------------------------------
Australia: 11.31%
- ---------------------------------------------------------------
Amcor 1,050,000 $ 6,516,863
Brambles Industries 311,000 5,145,646
CSR Limited 2,394,003 8,035,701
National Australia Bank 959,929 10,525,000
Pacific Dunlop 1,668,904 3,699,326
----------
33,922,536
----------
- ---------------------------------------------------------------
Belgium: 3.50%
- ---------------------------------------------------------------
Electrabel 38,405 8,890,132
G.I.B. Holdings 37,944 1,596,544
----------
10,486,676
----------
- ---------------------------------------------------------------
Canada: 1.23%
- ---------------------------------------------------------------
BC Telecom 173,000 3,682,638
----------
3,682,638
----------
- ---------------------------------------------------------------
France: 7.91%
- ---------------------------------------------------------------
Alcatel Alsthom 72,199 6,141,539
Campagnie de Saint Gobain 52,176 7,023,917
Elf Aquitaine 97,752 7,796,435
Societe Television Francaise 26,200 2,780,736
----------
23,742,627
----------
- ---------------------------------------------------------------
Germany: 5.83%
- ---------------------------------------------------------------
Bayer 122,000 4,596,647
Continental 288,550 5,036,772
Siemens 152,500 7,866,334
----------
17,499,753
----------
- ---------------------------------------------------------------
Hong Kong: 3.09%
- ---------------------------------------------------------------
Hong Kong Electric
Holdings 1,305,000 4,177,121
Wharf Holdings 1,231,000 5,078,554
----------
9,255,675
----------
- ---------------------------------------------------------------
Indonesia: 1.61%
- ---------------------------------------------------------------
PT Bank Dagang Nasional 3,816,875 2,703,727
PT Semen Gresik 740,000 2,128,519
----------
4,832,246
----------
<PAGE>
Number Market
of Shares Value
- ---------------------------------------------------------------
Japan: 12.55%
- ---------------------------------------------------------------
Amano 348,000 $ 4,151,579
Canon Electronics 332,000 6,348,772
Chiyoda Fire and Marine
Insurance 510,000 2,626,053
Eisai 359,500 6,433,158
Hitachi 914,000 8,097,719
Kinki Coca-Cola Bottling 75,000 980,263
Matsushita Electric 522,000 8,333,684
Sanoh Industrial 90,000 671,053
----------
37,642,281
----------
- ---------------------------------------------------------------
Malaysia: 0.99%
- ---------------------------------------------------------------
Sime Darby Berhad 840,000 2,975,069
----------
2,975,069
----------
- ---------------------------------------------------------------
Netherlands: 7.07%
- ---------------------------------------------------------------
Elsevier 475,000 7,873,160
Koninklijke Van Ommeren 123,000 5,096,835
Royal Dutch Petroleum 49,975 8,230,520
----------
21,200,515
----------
- ---------------------------------------------------------------
New Zealand: 4.46%
- ---------------------------------------------------------------
Carter Holt Harvey 2,231,400 5,017,832
Telecom Corp. of
New Zealand 1,610,000 8,368,059
----------
13,385,891
----------
- ---------------------------------------------------------------
Philippines: 1.34%
- ---------------------------------------------------------------
Philippine Long Distance
Telephone Company ADR 67,200 4,015,200
----------
4,015,200
----------
- ---------------------------------------------------------------
Singapore: 0.85%
- ---------------------------------------------------------------
Jardine Matheson Holdings
Limited 452,278 2,555,371
----------
2,555,371
----------
- ---------------------------------------------------------------
Spain: 6.39%
- ---------------------------------------------------------------
Acerinox S.A. 22,822 2,735,422
Banco Central
Hispanoamericano S.A. 175,827 4,104,696
Iberdrola S.A. 517,000 5,487,935
Telefonica de Espana 340,350 6,825,663
----------
19,153,716
----------
<PAGE>
Number Market
of Shares Value
- ---------------------------------------------------------------
Sweden: 0.03%
- ---------------------------------------------------------------
Sparbanken Sverige AB,
A Shares 5,553 $ 87,684
----------
87,684
----------
- ---------------------------------------------------------------
United Kingdom: 28.85%
- ---------------------------------------------------------------
Bass 693,000 8,884,787
Blue Circle Industries 1,253,000 8,123,944
Boots 863,100 8,762,605
British Airways 890,000 8,022,086
British Gas 961,300 2,995,127
Cable & Wireless 1,286,240 10,233,364
GKN 235,750 4,430,179
Glaxo Wellcome 347,711 5,459,254
Great Universal Stores 892,300 8,884,845
Powergen 1,324,000 10,986,155
RTZ 611,000 9,767,003
----------
86,549,349
----------
- ---------------------------------------------------------------
Total Common Stock
(cost $260,154,670) 290,987,227
- ---------------------------------------------------------------
Principal
Amount
- ---------------------------------------------------------------
REPURCHASE AGREEMENTS: 1.73%
- ---------------------------------------------------------------
With Chase Manhattan
5.50% 11/1/96 (dated
10/31/96, collateralized
by $1,629,000 U.S.
Treasury Notes 5.50%
due 11/15/98, market
value $1,660,281) $1,626,000 1,626,000
With Prudential Securities
5.50% 11/1/96 (dated
10/31/96, collateralized
by $1,770,000 U.S.
Treasury Notes 6.125%
due 5/31/97, market
value $1,821,266) 1,785,000 1,785,000
With PaineWebber
5.52% 11/1/96 (dated
10/31/96, collateralized
by $1,819,000 U.S.
Treasury Notes 5.875%
due 10/31/98, market
value $1,822,095) 1,785,000 1,785,000
- ---------------------------------------------------------------
Total Repurchase Agreements
(cost $5,196,000) 5,196,000
- ---------------------------------------------------------------
<PAGE>
- ---------------------------------------------------------------
TOTAL MARKET VALUE OF
SECURITIES: 98.74%
(cost $265,350,670) $296,183,227
- ---------------------------------------------------------------
- ---------------------------------------------------------------
- ---------------------------------------------------------------
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES: 1.26% 3,766,616
- ---------------------------------------------------------------
- ---------------------------------------------------------------
- ---------------------------------------------------------------
NET ASSETS APPLICABLE TO
20,294,734 SHARES ($.01 PAR VALUE)
OUTSTANDING; EQUIVALENT TO
$14.78 PER SHARE: 100.00% $299,949,843
- ---------------------------------------------------------------
- ---------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 1996:
- ---------------------------------------------------------------
Common stock, $.01 par value,
500,000,000 shares authorized
to the Fund with 50,000,000
shares allocated to this Portfolio $262,861,368
Accumulated undistributed income:
Net investment income* 7,201,542
Net realized gain on investments* (1,685,719)
Net unrealized appreciation on investments
and foreign currencies 31,572,652
- ---------------------------------------------------------------
Total Net Assets $299,949,843
- ---------------------------------------------------------------
* Accumulated net investment income includes net realized gain on foreign
currencies. During the current fiscal year, the Fund reclassified $750,818 from
accumulated net realized gain on investments to accumulated net investment
income. Net realized gains on foreign currencies are distributed as net
investment income in accordance with provisions of the Internal Revenue Code.
See accompanying notes
<PAGE>
Delaware Pooled Trust, Inc.: The Labor Select International Equity Portfolio
Statement of Net Assets
October 31, 1996
Number Market
of Shares Value
- ---------------------------------------------------------------
COMMON STOCK: 95.14%
- ---------------------------------------------------------------
Australia: 11.43%
- ---------------------------------------------------------------
Amcor 87,000 $ 539,969
Brambles Industries 37,200 615,492
National Australia Bank 98,216 1,076,875
National Foods 337,000 413,518
----------
2,645,854
----------
- ---------------------------------------------------------------
Belgium: 4.32%
- ---------------------------------------------------------------
Electrabel 3,700 856,490
G.I.B. Holdings 3,398 142,975
----------
999,465
----------
- ---------------------------------------------------------------
Canada: 1.53%
- ---------------------------------------------------------------
BC Telecom 16,650 354,427
----------
354,427
----------
- ---------------------------------------------------------------
France: 7.10%
- ---------------------------------------------------------------
Alcatel Alsthom 5,326 453,051
Elf Aquitaine 8,500 677,937
Societe Television Francaise 4,840 513,693
----------
1,644,681
----------
- ---------------------------------------------------------------
Germany: 6.38%
- ---------------------------------------------------------------
Bayer 15,700 591,536
Continental 20,400 356,091
RWE 4,950 203,132
Siemens 6,350 327,549
----------
1,478,308
----------
- ---------------------------------------------------------------
Hong Kong: 3.10%
- ---------------------------------------------------------------
Hong Kong Electric Holdings 151,000 483,330
Wharf Holdings 57,000 235,156
----------
718,486
----------
- ---------------------------------------------------------------
Japan: 11.49%
- ---------------------------------------------------------------
Canon 34,000 650,175
Eisai 27,000 483,158
Kinki Coca-Cola Bottling 23,000 300,614
Matsushita Electric 35,000 558,772
Nichido Fire & Marine 43,000 267,807
Yokohama Reito 34,000 399,649
----------
2,660,175
----------
<PAGE>
Number Market
of Shares Value
- ---------------------------------------------------------------
Netherlands: 7.46%
- ---------------------------------------------------------------
Elsevier 34,400 $ 570,182
Koninklijke Van Ommeren 10,200 422,664
Royal Dutch Petroleum 3,790 624,185
Unilever 720 109,184
----------
1,726,215
----------
- ---------------------------------------------------------------
New Zealand: 5.58%
- ---------------------------------------------------------------
Carter Holt Harvey 122,000 274,346
Telecom Corp. of
New Zealand 196,000 1,018,720
----------
1,293,066
----------
- ---------------------------------------------------------------
Singapore: 1.34%
- ---------------------------------------------------------------
Jardine Matheson Holdings 54,800 309,620
----------
309,620
----------
- ---------------------------------------------------------------
Spain: 6.41%
- ---------------------------------------------------------------
Acerinox S.A. 4,135 495,617
Banco Central
Hispanoamericano S.A. 21,390 499,351
Iberdrola S.A. 46,000 488,288
----------
1,483,256
----------
- ---------------------------------------------------------------
Sweden: 0.03%
- ---------------------------------------------------------------
Sparbanken Sverige AB, A Shares 447 7,058
----------
7,058
----------
- ---------------------------------------------------------------
United Kingdom: 28.97%
- ---------------------------------------------------------------
Associated British Food 89,000 611,069
Bass 41,500 532,062
Blue Circle Industries 91,150 590,980
Boots 53,100 539,097
British Airways 60,800 548,026
British Gas 74,250 231,341
GKN 43,000 808,050
Glaxo Wellcome 27,260 427,997
Great Universal Stores 72,000 716,921
Powergen 88,250 732,272
RTZ 35,950 574,671
Taylor Woodrow 156,750 395,300
----------
6,707,786
----------
- ---------------------------------------------------------------
Total Common Stock
(cost $20,561,562) 22,028,397
- ---------------------------------------------------------------
<PAGE>
Principal Market
Amount Value
- ---------------------------------------------------------------
REPURCHASE AGREEMENTS: 5.68%
- ---------------------------------------------------------------
With Chase Manhattan
5.50% 11/1/96 (dated
10/31/96, collateralized
by $413,000 U.S.
Treasury Notes 5.50%
due 11/15/98, market
value $420,551) $412,000 $ 412,000
With Prudential Securities
5.50% 11/1/96 (dated
10/31/96, collateralized
by $448,000 U.S.
Treasury Notes 6.125%
due 5/31/97, market
value $461,258) 452,000 452,000
With PaineWebber
5.52% 11/1/96 (dated
10/31/96, collateralized
by $461,000 U.S.
Treasury Notes 5.875%
due 10/31/98, market
value $461,468) 452,000 452,000
- ---------------------------------------------------------------
Total Repurchase Agreements
(cost $1,316,000) 1,316,000
- ---------------------------------------------------------------
- ---------------------------------------------------------------
TOTAL MARKET VALUE OF
SECURITIES: 100.82%
(cost $21,877,562) $23,344,397
- ---------------------------------------------------------------
- ---------------------------------------------------------------
LIABILITIES NET OF RECEIVABLES AND
OTHER ASSETS: (0.82%) (190,782)
- ---------------------------------------------------------------
- ---------------------------------------------------------------
NET ASSETS APPLICABLE TO
1,981,093 SHARES ($0.01 PAR VALUE)
OUTSTANDING; EQUIVALENT TO
$11.69 PER SHARE: 100.00% $23,153,615
- ---------------------------------------------------------------
- ---------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 1996
- ---------------------------------------------------------------
Common Stock $0.01 par value,
500,000,000 shares authorized
to the Fund with 50,000,000
shares allocated to this Portfolio $21,020,315
Accumulated undistributed income:
Net investment income* 749,762
Net realized loss on investments (105,173)
Net unrealized appreciation of
investments and foreign currencies 1,488,711
- ---------------------------------------------------------------
Total Net Assets $23,153,615
- ---------------------------------------------------------------
* Accumulated net investment income includes net realized gains on foreign
currencies. Net realized gains on foreign currencies are distributed as net
investment income in accordance with provisions of the Internal Revenue Code.
See accompanying notes
<PAGE>
Delaware Pooled Trust, Inc.:
The Global Fixed Income Portfolio
Statement of Net Assets
October 31, 1996
Principal Market
Amount* Value
- ---------------------------------------------------------------
BONDS: 94.26%
- ---------------------------------------------------------------
Australia: 8.11%
- ---------------------------------------------------------------
Australian Government,
9.500%, 08/15/03 4,000,000 $ 3,550,867
Australian Government,
10.000%, 02/15/06 4,000,000 3,721,420
Banque National De Paris,
9.000%, 08/13/02 3,000,000 2,548,618
DSL Finance NV
Amsterdam,
10.250%, 04/07/00 3,000,000 2,599,086
New South Wales
International,
7.000%, 04/01/04 4,000,000 3,100,708
Queensland Treasury-
Global,
8.000%, 05/14/03 6,000,000 4,907,644
----------
20,428,343
----------
- ---------------------------------------------------------------
Austria: 2.11%
- ---------------------------------------------------------------
Republic of Austria,
5.625%, 12/14/00 55,000,000 5,319,921
----------
5,319,921
----------
- ---------------------------------------------------------------
Canada: 11.89%
- ---------------------------------------------------------------
Autobahn Schnell,
8.500%, 03/03/03 2,000,000 1,668,409
European Investment Bank,
8.875%, 03/27/02 2,000,000 1,698,286
Export-Import Bank of Japan,
7.750%, 10/08/02 2,000,000 1,617,059
General Electric Capital
of Canada,
7.125%, 02/12/04 4,000,000 3,118,348
Government of Canada,
9.000%, 12/01/04 7,000,000 6,162,624
Government of Canada,
10.250%, 03/15/14 5,000,000 4,992,755
KFW International
Finance,
6.500%, 12/28/01 2,000,000 1,544,236
Kansai International
Airport,
8.000%, 07/02/03 4,000,000 3,262,128
Kingdom of Norway,
8.375%, 01/27/03 5,000,000 4,147,683
Ontario Hydro,
10.000%, 03/19/01 2,000,000 1,751,503
----------
29,963,031
----------
<PAGE>
Principal Market
Amount* Value
- ---------------------------------------------------------------
Denmark: 10.88%
- ---------------------------------------------------------------
Kingdom of Denmark,
9.000%, 11/15/00 20,000,000 $ 3,875,437
Kingdom of Denmark,
8.000%, 11/15/01 16,000,000 3,004,321
Kingdom of Denmark,
8.000%, 05/15/03 27,000,000 5,048,958
Kingdom of Denmark,
8.000%, 03/15/06 84,000,000 15,501,887
----------
27,430,603
----------
- ---------------------------------------------------------------
Germany: 9.57%
- ---------------------------------------------------------------
Baden Wurt L-Finance NV,
6.625%, 08/20/03 8,000,000 5,533,050
Bundesrepblik Deutscheland,
5.750%, 08/22/00 6,000,000 4,111,056
Bundesrepblik Deutscheland,
8.375%, 05/21/01 2,000,000 1,501,037
Bundesrepblik Deutscheland,
6.500%, 07/15/03 5,000,000 3,456,180
International Bank
Reconstruction &
Development,
6.125%, 09/27/02 8,000,000 5,488,259
Republic of Finland,
5.500%, 02/09/01 6,000,000 4,043,079
----------
24,132,661
----------
- ---------------------------------------------------------------
Italy: 2.54%
- ---------------------------------------------------------------
American International
Group,
11.700%, 12/04/01 3,000,000,000 2,297,627
Eurofima,
7.700%, 02/02/04 4,000,000,000 2,609,406
Nordic Investment Bank,
10.800%, 05/24/03 2,000,000,000 1,500,491
----------
6,407,524
----------
- ---------------------------------------------------------------
Netherlands: 1.73%
- ---------------------------------------------------------------
Netherlands Government,
9.000%, 05/15/00 6,500,000 4,370,647
----------
4,370,647
----------
- ---------------------------------------------------------------
New Zealand: 15.09%
- ---------------------------------------------------------------
Government of
New Zealand,
6.500%, 02/15/00 8,000,000 5,553,108
Government of
New Zealand,
8.000%, 02/15/01 12,500,000 9,114,280
Government of
New Zealand,
8.000%, 04/15/04 11,000,000 8,104,575
<PAGE>
Principal Market
Amount* Value
- ---------------------------------------------------------------
Government of
New Zealand,
8.000%, 11/15/06 20,500,000 $15,250,397
----------
38,022,360
----------
- ---------------------------------------------------------------
Spain: 8.46%
- ---------------------------------------------------------------
Bayerische Landesanstalt,
7.800%, 02/11/04 200,000,000 1,594,203
DSL Finance NV
Amsterdam,
7.875%, 02/10/04 200,000,000 1,602,037
European Investment
Bank,
11.250%, 03/15/00 100,000,000 879,847
European Investment
Bank,
13.900%, 03/22/00 120,000,000 1,135,723
Spanish Government,
11.300%, 01/15/02 500,000,000 4,595,377
Spanish Government,
10.300%, 06/15/02 300,000,000 2,668,155
Spanish Government,
10.500%, 10/30/03 827,000,000 7,499,040
World Bank,
10.625%, 09/08/98 160,000,000 1,346,651
----------
21,321,033
----------
- ---------------------------------------------------------------
Sweden: 4.05%
- ---------------------------------------------------------------
Nordic Investment Bank,
10.250%, 01/07/99 8,000,000 1,326,997
Swedish Government,
9.000%, 04/20/09 9,000,000 1,516,006
Swedish Government,
13.000%, 06/15/01 20,000,000 3,814,129
Swedish Government,
10.250%, 05/05/03 20,000,000 3,554,530
----------
10,211,662
----------
- ---------------------------------------------------------------
United Kingdom: 10.25%
- ---------------------------------------------------------------
Abbey National Treasury,
8.000%, 04/02/03 2,000,000 3,306,877
ARGYLL Group,
8.125%, 03/10/00 1,000,000 1,662,591
Barclays Bank,
6.500%, 02/16/04 500,000 758,589
Depfa Finance,
7.125%, 11/11/03 500,000 790,112
Glaxo Wellcome,
8.750%, 12/01/05 2,500,000 4,240,369
Mutual Group (The),
7.250%, 01/12/04 200,000 309,333
<PAGE>
Principal Market
Amount* Value
- ---------------------------------------------------------------
Nationwide Anglia
Building Society,
13.500%, 11/21/00 200,000 $ 388,650
Powergen,
8.500%, 07/03/06 2,000,000 3,298,743
Redland Sterling Funding,
10.875%, 11/27/01 200,000 365,465
Tesco,
8.750%, 02/20/03 1,750,000 2,980,715
UK Conversion S47
Stock Gilt,
9.000%, 03/03/00 1,000,000 1,720,553
UK Treasury,
8.000%, 06/10/03 1,300,000 2,181,197
UK Treasury,
11.750%, 01/22/07 1,000,000 1,968,670
Woolwich Building Society,
11.625%, 12/18/01 1,000,000 1,873,084
----------
25,844,948
----------
- ---------------------------------------------------------------
United States: 9.58%
- ---------------------------------------------------------------
U.S.Treasury Notes,
7.500%, 11/15/01 $6,000,000 6,359,460
U.S.Treasury Notes,
7.875%, 11/15/04 16,200,000 17,789,380
----------
24,148,840
----------
- ---------------------------------------------------------------
Total Bonds
(cost $223,346,267) 237,601,573
- ---------------------------------------------------------------
- ---------------------------------------------------------------
REPURCHASE AGREEMENTS: 2.57%
- ---------------------------------------------------------------
With Chase Manhattan
5.50% 11/1/96 (dated
10/31/96, collateralized
by $2,029,000 U.S.
Treasury Notes 5.50%
due 11/15/98, market
value $2,068,715) 2,026,000 2,026,000
With Prudential Securities
5.50% 11/1/96 (dated
10/31/96, collateralized
by $2,205,000 U.S.
Treasury Notes 6.125%
due 5/31/97, market
value $2,269,186) 2,224,000 2,224,000
<PAGE>
Principal Market
Amount* Value
- ---------------------------------------------------------------
With PaineWebber
5.52% 11/1/96 (dated
10/31/96, collateralized
by $2,266,000 U.S.
Treasury Notes 5.875%
due 10/31/98, market
value $2,270,218) $2,224,000 $ 2,224,000
- ---------------------------------------------------------------
Total Repurchase Agreements
(cost $6,474,000) 6,474,000
- ---------------------------------------------------------------
- ---------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 96.83%
(cost $229,820,267) 244,075,573
- ---------------------------------------------------------------
- ---------------------------------------------------------------
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES: 3.17% 7,992,678
- ---------------------------------------------------------------
- ---------------------------------------------------------------
NET ASSETS APPLICABLE TO
21,689,129 SHARES ($.01 PAR VALUE)
OUTSTANDING; EQUIVALENT TO
$11.62 PER SHARE: 100.00% $252,068,251
- ---------------------------------------------------------------
- ---------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 1996:
- ---------------------------------------------------------------
Common stock, $.01 par value,
500,000,000 shares authorized
to the Fund with 50,000,000
shares allocated to this Portfolio $229,378,213
Accumulated undistributed income:
Net investment income** 4,332,050
Net realized gain on investments** 3,745,527
Net unrealized appreciation on
investments and foreign currencies 14,612,461
- ---------------------------------------------------------------
Total Net Assets $252,068,251
- ---------------------------------------------------------------
* Principal amount is stated in the currency in which each security is
denominated.
** Accumulated net investment income includes net realized gain on foreign
currencies. During the current fiscal year, the Fund reclassified ($2,701,548)
from accumulated net realized gain on investments to accumulated net investment
income. Net realized gains on foreign currencies are distributed as net
investment income in accordance with provisions of the Internal Revenue Code.
See accompanying notes
<PAGE>
Delaware Pooled Trust, Inc.
Statement of Operations
<TABLE>
<CAPTION>
12/6/95* 3/12/96* 12/19/95*
Year Ended to to Year Ended to Year Ended
10/31/96 10/31/96 10/31/96 10/31/96 10/31/96 10/31/96
- ----------------------------------------------------------------------------------------------------------------------------------
The Real The Labor
The The Estate The The Select The Global
Defensive Aggressive Investment Fixed International International Fixed
Equity Growth Trust Income Equity Equity Income
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INTEREST INCOME:
Interest $194,344 $138,964 $62,667 $337,480 $857,879 $61,523 $12,515,249
Dividends 2,020,544 55,617 1,486,840 - 7,234,304 482,488 -
-----------------------------------------------------------------------------------------
2,214,888 194,581 1,549,507 337,480 8,092,183 544,011 12,515,249
-----------------------------------------------------------------------------------------
EXPENSES:
Management fees 343,114 214,315 153,313 19,389 1,632,036 100,144 762,870
Dividend disbursing and transfer
agent fees and expenses 3,611 2,035 846 636 11,332 396 9,585
Registration fees 15,466 12,050 5,779 8,392 60,306 8,376 66,404
Custodian fees 16,785 1,607 8,055 3,552 89,077 22,342 78,735
Reports and statements to shareholders 10,507 10,936 4,537 3,942 20,454 12,717 8,555
Professional fees 8,804 8,573 14,674 3,434 13,976 16,354 17,504
Accounting fees and salaries 17,458 7,987 5,845 1,553 54,436 3,887 37,254
Taxes (other than taxes on income) 5,630 3,748 2,588 1,070 22,084 1,294 9,076
Directors' fees 1,860 1,588 1,280 767 3,126 1,259 2,602
Amortization of organization expenses 1,420 1,424 3,629 17,232 1,457 3,501 -
Other 13,196 8,030 7,036 668 33,645 3,153 23,468
-----------------------------------------------------------------------------------------
437,851 272,293 207,582 60,635 1,941,929 173,423 1,016,053
Expenses absorbed by Delaware Management
Company, Inc. and Delaware
International Advisers Ltd. 14,988 28,562 26,063 33,915 - 50,089 101,650
-----------------------------------------------------------------------------------------
422,863 243,731 181,519 26,720 1,941,929 123,334 914,403
-----------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) BEFORE FOREIGN
TAX WITHHELD: 1,792,025 (49,150) 1,367,988 310,760 6,150,254 420,677 11,600,846
FOREIGN TAX WITHHELD: - - - - (600,397) (36,899) (64,815)
-----------------------------------------------------------------------------------------
NET INVESTMENT INCOME: 1,792,025 (49,150) 1,367,988 310,760 5,549,857 383,778 11,536,031
-----------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) AND UNREALIZED GAIN
ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on:
Investment transactions 6,423,225 4,554,847 1,655,753 (40,384) (1,679,482) (105,173) 3,749,795
Foreign currencies - - - - 3,970,936 504,343 1,523,754
-----------------------------------------------------------------------------------------
Net realized gain (loss) 6,423,225 4,554,847 1,655,753 (40,384) 2,291,454 399,170 5,273,549
-----------------------------------------------------------------------------------------
Net unrealized appreciation of
investments and foreign currencies
during the period 5,345,676 154,982 2,263,515 120,099 26,883,462 1,488,711 9,570,431
-----------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS AND FOREIGN
CURRENCIES 11,768,901 4,709,829 3,919,268 79,715 29,174,916 1,887,881 14,843,980
-----------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $13,560,926 $4,660,679 $5,287,256 $390,475 $34,724,773 $2,271,659 $26,380,011
=========================================================================================
</TABLE>
*Date of initial sale
See accompanying notes
<PAGE>
Delaware Pooled Trust, Inc.
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
12/6/95* 3/12/96* 12/19/95*
Year Ended to to Year Ended to Year Ended
10/31/96 10/31/96 10/31/96 10/31/96 10/31/96 10/31/96
- ----------------------------------------------------------------------------------------------------------------------------------
The Real The Labor
The The Estate The The Select The Global
Defensive Aggressive Investment Fixed International International Fixed
Equity Growth Trust Income Equity Equity Income
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $1,792,025 $(49,150) $1,367,988 $310,760 $5,549,857 $383,778 $11,536,031
Net realized gain (loss) on
investments and foreign currencies 6,423,225 4,554,847 1,655,753 (40,384) 2,291,454 399,170 5,273,549
Net unrealized appreciation of
investments and foreign currencies 5,345,676 154,982 2,263,515 120,099 26,883,462 1,488,711 9,570,431
------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations 13,560,926 4,660,679 5,287,256 390,475 34,724,773 2,271,659 26,380,011
------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (1,659,884) (81,854) (199,358) (310,760) (6,354,756) (138,359) (10,006,060)
Net realized gain from security
transactions (4,186,924) (1,194,103) - - (1,816,432) - (1,840,321)
------------------------------------------------------------------------------------------
(5,846,808) (1,275,957) (199,358) (310,760) (8,171,188) (138,359) (11,846,381)
------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 13,087,899 2,730,729 21,180,890 10,119,174 118,583,942 24,581,956 133,893,172
Net asset value of shares issued upon
reinvestment of dividends from net
investment income and net realized
gain from security transactions 5,677,329 1,275,957 199,358 297,676 7,927,782 138,359 9,235,082
------------------------------------------------------------------------------------------
18,765,228 4,006,686 21,380,248 10,416,850 126,511,724 24,720,315 143,128,254
Cost of shares repurchased (11,247,559) (7,957,748) (508) - (9,582,578) (3,700,000) (4,754,302)
------------------------------------------------------------------------------------------
Increase (decrease) in net assets
derived from capital share
transactions 7,517,669 (3,951,062) 21,379,740 10,416,850 116,929,146 21,020,315 138,373,952
------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS: 15,231,787 (566,340) 26,467,638 10,496,565 143,482,731 23,153,615 152,907,582
NET ASSETS:
Beginning of period 51,947,097 29,091,884 - 21,000 156,467,112 - 99,160,669
------------------------------------------------------------------------------------------
End of period $67,178,884 $28,525,544 $26,467,638 $10,517,565 $299,949,843 $23,153,615 $252,068,251
------------------------------------------------------------------------------------------
Undistributed net investment income $996,335 $(49,355) $1,168,630 $ - $7,201,542 $749,762 $4,332,050
------------------------------------------------------------------------------------------
</TABLE>
* Date of initial public sale.
See accompanying notes
<PAGE>
Delaware Pooled Trust, Inc.
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Year Ended October 31, 1995
- ------------------------------------------------------------------------------------------------
The
The The The Global
Defensive Aggressive International Fixed
Equity Growth Equity Income
Portfolio Portfolio 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) -0-
-------------------------------------------------------
(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
<PAGE>
Delaware Pooled Trust, Inc.
Notes to Financial Statements
October 31, 1996
Delaware Pooled Trust, Inc. (The "Fund") is registered as a diversified open-end
investment company under the Investment Company Act of 1940, as amended. The
Fund is organized as a Maryland Corporation and offers 12 separate Portfolios
("Portfolios"). The Defensive Equity Portfolio, The Aggressive Growth Portfolio,
The Real Estate Investment Trust Portfolio, The Fixed Income Portfolio, The
International Equity Portfolio, The Labor Select International Equity Portfolio,
and The Global Fixed Income Portfolio had commenced operations prior to October
31, 1996.
1. Significant Accounting Policies
The following accounting policies are in accordance with generally accepted
accounting principles and are consistently followed by the Portfolios:
Security Valuation-Securities listed on an exchange are valued at the last
quoted sales price as of 4:00 pm EST on the valuation date. Securities not
traded or securities not 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 which
approximates market value.
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 the
Fund'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.
<PAGE>
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
was less than 0.01% of each Portfolio's average net assets.
<PAGE>
2. Investment Management
In accordance with the terms of the Investment Management Agreement, Delaware
Management Company, Inc. (DMC), the Investment Manager of The Defensive Equity
Portfolio, The Aggressive Growth Portfolio, The Real Estate Investment Trust
Portfolio, and the Fixed Income Portfolio, and Delaware International Advisers
Ltd. (DIAL), the Investment Manager of The International Equity Portfolio, The
Labor Select International Equity Portfolio, and The Global Fixed Income
Portfolio, will receive an annual fee, which is calculated daily on the net
assets of each Portfolio less fees paid to the independent directors, except for
the Labor Select International Equity Portfolio and the Real Estate Investment
Trust Portfolio. The management fees for the Labor Select International Equity
Portfolio and the Real Estate Investment Trust Portfolio are calculated daily on
the net assets of each Portfolio without consideration of amounts paid to
independent directors.
Lincoln Investment Manager, Inc., an affiliate of DMC, receives 30% of the
advisory fee paid to DMC for acting as a sub-advisor to the Real Estate
Investment Trust Portfolio.
<TABLE>
<CAPTION>
The Real The Labor
The The Estate The The Select The Global
Defensive Aggressive Investment Fixed International International Fixed
Equity Growth Trust Income Equity Equity Income
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Management fees as a percentage of
average daily net assets (per annum) 0.55% 0.80% 0.75% 0.40% 0.75% 0.75% 0.50%
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
At October 31, 1996, the Portfolios had liabilities for Investment Management
fees and other expenses payable to DMC or DIAL as follows:
<TABLE>
<CAPTION>
The Real The Labor
The The Estate The The Select The Global
Defensive Aggressive Investment Fixed International International Fixed
Equity Growth Trust Income Equity Equity Income
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment management fees and
other expenses payable
to DMC or DIAL $91,889 $45,380 $38,469 $ -- $101,036 $40,162 $263,739
- ----------------------------------------------------------------------------------------------------------------------------------
</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%,
0.89%, 0.53%, 0.96%, 0.96%, and 0.60% for The Defensive Equity Portfolio, The
Aggressive Growth Portfolio, The Real Estate Investment Trust Portfolio, The
Fixed Income Portfolio, The International Equity Portfolio, The Labor Select
International Equity Portfolio, and The Global Fixed Income Portfolio,
respectively through October 31, 1996. Total expenses absorbed by DMC or DIAL
are as follows:
<TABLE>
<CAPTION>
The Real The Labor
The The Estate The The Select The Global
Defensive Aggressive Investment Fixed International International Fixed
Equity Growth Trust Income Equity Equity Income
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Total expenses absorbed by
DMC or DIAL $14,988 $28,562 $26,063 $33,915 -- $50,089 $101,650
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
The Fund has engaged Delaware Service Company, Inc. (DSC), an affiliate of DMC,
to serve as dividend disbursing and transfer agent for the Portfolios. Effective
August 19, 1996, the Fund also engaged DSC to provide accounting services for
the Fund. Previously, fund personnel provided this service and the related costs
were recorded in salaries and other expense categories in the statement of
operations. At October 31, 1996 the amount expensed by the Portfolios and the
liability for such fees and other expenses payable to DSC are as follows:
<TABLE>
<CAPTION>
The Real The Labor
The The Estate The The Select The Global
Defensive Aggressive Investment Fixed International International Fixed
Equity Growth Trust Income Equity Equity Income
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Amount expensed for accounting services $ 3,571 $ 2,076 $ 1,339 $ 520 $ 8,580 $ 1,233 $ 5,624
Amount expensed for dividend disbursing
and transfer agent services $ 3,611 $ 2,035 846 $ 636 $ 11,332 $ 396 $ 9,585
Dividend disbursing, transfer agent fees,
accounting service fees, and other
expenses payable $ 2,214 $ 1,292 4,333 -- $ 7,819 $ 4,119 $ 6,668
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Certain officers of DMC are officers, directors, and/or employees of the Fund.
These officers, directors, and employees are paid no compensation by each
Portfolio.
3. Investments
During the year ended October 31, 1996, each Portfolio made
purchases and sales of investment securities other than U.S. Government
securities and temporary cash investments as follows:
<TABLE>
<CAPTION>
The Real The Labor
The The Estate The The Select The Global
Defensive Aggressive Investment Fixed International International Fixed
Equity Growth Trust Income Equity Equity Income
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Purchases $49,591,718 $23,306,237 $44,175,243 $ 9,756,922 $136,860,587 $21,532,812 $219,337,663
Sales $43,639,249 $28,059,686 $22,121,490 $ 2,354,498 $ 15,903,178 $ 866,351 $ 89,778,184
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Investment securities based on cost for federal income tax purposes at
October 31, 1996, are as follows:
<TABLE>
<CAPTION>
The Real The Labor
The The Estate The The Select The Global
Defensive Aggressive Investment Fixed International International Fixed
Equity Growth Trust Income Equity Equity Income
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Cost of investment $56,858,409 $22,758,496 $24,207,428 $ 9,942,927 $265,350,670 $21,877,562 $229,820,267
Aggregate unrealized appreciation 9,838,783 6,711,304 2,294,039 125,359 38,154,138 1,892,032 14,967,456
Aggregate unrealized depreciation (565,852) (975,740) (46,268) (6,730) (7,321,581) (425,197) (712,150)
--------------------------------------------------------------------------------------------
Market value of investments $66,131,340 $28,494,060 $26,455,199 $10,061,556 $296,183,227 $23,344,397 $244,075,573
Net realized gain (loss) for federal
income tax purposes $ 6,385,478 $ 4,617,032 $ 1,671,496 $ (38,915) $ (1,679,482) $(105,173) $ 3,749,794
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
The capital loss carryforwards for The Fixed Income Portfolio, The International
Equity Portfolio, and The Labor Select International Equity Portfolio expire in
2004.
<PAGE>
4. Capital Stock
Transactions in capital stock shares were as follows:
<TABLE>
<CAPTION>
The Real
The The Estate The
Defensive Aggressive Investment Fixed
Equity Growth Trust Income
Portfolio Portfolio Portfolio Portfolio
- -------------------------------------------------------------------------------------------
Year Year Year Year 12/6/95* 3/12/96*
Ended Ended Ended Ended to to
10/31/96 10/31/95 10/31/96 10/31/95 10/31/96 10/31/96
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 867,203 1,606,822 185,079 245,861 2,099,590 1,018,936
Shares issued upon
reinvestment of dividends
from net investment
income and net realized
gains from security
transactions 394,721 214,632 100,154 49,736 19,488 30,141
----------------------------------------------------------------
1,261,924 1,821,454 285,233 295,597 2,119,078 1,049,077
Shares repurchased (725,191) (1,130,397) (588,835) (89,704) (46) --
Net increase (decrease) 536,733 691,057 (303,602) 205,893 2,119,032 1,049,077
----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
The Labor
The Select The Global
International International Fixed
Equity Equity Income
Portfolio Portfolio Portfolio
- -------------------------------------------------------------------------------------
Year Year 12/19/95* Year Year
Ended Ended to Ended Ended
10/31/96 10/31/95 10/31/96 10/31/96 10/31/95
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Shares sold 8,473,181 6,552,314 2,288,206 12,279,262 4,614,586
Shares issued upon
reinvestment of dividends
from net investment
income and net realized
gains from security
transactions 595,756 229,401 12,445 860,639 221,439
------------------------------------------------------
9,068,937 6,781,715 2,300,651 13,139,901 4,836,025
Shares repurchased (697,650) (260,743) (319,558) (433,916) (168,124)
------------------------------------------------------
Net increase (decrease) 8,371,287 6,520,972 1,981,093 12,705,985 4,667,901
- -------------------------------------------------------------------------------------
</TABLE>
* Date of initial sale
<PAGE>
5. Foreign Currency Forward Contracts
The following currency forward contracts were outstanding at October 31, 1996.
The International Equity Portfolio
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
In Settlement Unrealized
Contract to Deliver Exchange For Date Appreciation
<S> <C> <C> <C> <C>
171,760,600 Belgian Francs $ 5,555,000 12/31/96 $ 63,093
16,691,109 Deutsche Marks 11,110,000 12/30/96 72,367
18,704,796 Dutch Guilders 11,110,000 12/31/96 68,741
56,529,902 French Francs 11,110,000 12/31/96 41,595
1,514,669,775 Japanese Yen 13,890,000 12/30/96 490,586
--------
$736,382
--------
</TABLE>
The Labor Select International Equity Portfolio
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Unrealized
In Settlement Appreciation
Contract to Deliver Exchange For Date (Depreciation)
<S> <C> <C> <C>
14,315,960 Belgian Francs $ 463,000 1/31/97 $ 5,250
1,389,000 German Deutsche Marks 926,000 1/31/97 5,618
1,557,532 Dutch Guilders 926,000 1/31/97 4,780
4,704,080 French Francs 926,000 1/31/97 3,401
130,347,620 Japanese Yen $1,157,000 1/31/97 (1,347)
-------
$17,702
-------
</TABLE>
<PAGE>
5. Foreign Currency Forward Contracts (Continued)
The following currency forward contracts were outstanding at October 31, 1996.
The Global Fixed Income Portfolio
<TABLE>
<CAPTION>
Unrealized
In Settlement Appreciation
Contract to Deliver Exchange For Date (Depreciation)
<S> <C> <C> <C>
56,800,000 Austrian Schilling $ 5,390,273 1/31/97 $ 38,735
36,000,000 Deutsche Marks 24,056,935 1/31/97 202,535
7,500,000 Dutch Guilders 4,473,739 1/31/97 37,779
9,700,000,000 Italian Lira 6,348,168 1/31/97 (727)
68,500,000 Swedish Krone 10,406,381 1/31/97 (14,386)
--------
$263,936
========
</TABLE>
6. Concentration of Credit Risk
The Fixed Income Portfolio invests in securities whose value is derived from an
underlying pool of mortgages or consumer loans. Prepayment of these loans may
shorten the stated maturity of the respective obligation and may result in a
loss of premium, if it has been paid.
<PAGE>
7. 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 Year 2/3/92(1)
Ended Ended Ended Ended to
10/31/96 10/31/95 10/31/94 10/31/93 10/31/92
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $14.6600 $13.0800 $12.7300 $10.6600 $10.0000
Income from investment
operations:
Net investment income 0.4404 0.4303 0.3203 0.2841 0.2291
Net realized and unrealized
gain from security transactions 2.9596 1.9797 0.6527 2.3159 0.5109
--------------------------------------------------------------------
Total from investment operations 3.4000 2.4100 0.9730 2.6000 0.7400
--------------------------------------------------------------------
Less distributions:
Dividends from net investment
income (0.4400) (0.3400) (0.2800) (0.3200) (0.0800)
Distributions from net realized gain
from security transactions (1.1600) (0.4900) (0.3430) (0.2100) none
--------------------------------------------------------------------
Total distributions (1.6000) (0.8300) (0.6230) (0.5300) (0.0800)
--------------------------------------------------------------------
Net asset value, end of period $16.4600 $14.6600 $13.0800 $12.7300 $10.6600
--------------------------------------------------------------------
Total return 24.87% 19.77% 7.96% 25.17% 10.13%
Ratios/supplemental data:
Net assets, end of period
(000 omitted) $ 67,179 $ 51,947 $ 37,323 $ 13,418 $ 4,473
Ratio of expenses to
average net assets 0.67%(2) 0.68%(2) 0.68%(2) 0.68%(2) 0.68%(2)
Ratio of net investment income
to average net assets 2.85%(3) 3.33%(3) 3.26%(3) 2.90%(3) 3.65%(3)
Portfolio turnover 74% 88% 73% 37% 28%
Average commission rate paid $ 0.06 N/A N/A N/A N/A
</TABLE>
- -------------------------------------------------------------------------------
1 Date of initial sale; ratios and total return have been annualized.
2 Ratio of expenses to average net assets prior to expense limitation was
0.70% for the year ended 10/31/96, 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.
3 Ratio of net investment income to average net assets prior to expense
limitation was 2.83% for the year ended 10/31/96, 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.
<PAGE>
7. 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 Year 2/27/92(1)
Ended Ended Ended Ended to
10/31/96 10/31/95 10/31/94 10/31/93 10/31/92
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $12.8600 $11.0100 $11.2000 $ 9.0400 $ 10.0000
Income (loss) from investment operations:
Net investment income (0.0188) 0.0428 0.0075 0.0181 0.0167
Net realized and unrealized
gain (loss) from security transactions 2.3913 2.0552 0.0325 2.1589 (0.9767)
--------------------------------------------------------------------
Total from investment operations 2.3725 2.0980 0.0400 2.1770 (0.9600)
--------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.0425) (0.0120) (0.0200) (0.0170) none
Distributions from net realized gain
from security transactions (0.6200) (0.2360) (0.2100) none none
--------------------------------------------------------------------
Total distributions (0.6625) (0.2480) (0.2300) (0.0170) none
--------------------------------------------------------------------
Net asset value, end of period $14.5700 $12.8600 $11.0100 $11.2000 $ 9.0400
--------------------------------------------------------------------
Total return 19.19% 19.61% 0.34% 24.10% (13.89%)
Ratios/supplemental data:
Net assets, end of period (000 omitted) $ 28,526 $ 29,092 $ 22,640 $ 20,478 $ 4,538
Ratio of expenses to average net assets 0.90%(2) 0.93%(2) 0.93%(2) 0.93%(2) 0.93%(2)
Ratio of net investment income (loss)
to average net assets (0.18%)(3) 0.37%(3) 0.07%(3) 0.23%(3) 0.28%(3)
Portfolio turnover 95% 64% 43% 81% 34%
Average commission rate paid $ 0.06 N/A N/A N/A N/A
</TABLE>
1 Date of initial sale; ratios and total return have been annualized.
2 Ratio of expenses to average net assets prior to expense limitation was
1.01% for the year ended 10/31/96, 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%
for the period from 2/27/92 to 10/31/92.
3 Ratio of net investment income to average net assets prior to expense
limitation was (0.29%) for the year ended 10/31/96, 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.
<PAGE>
7. Financial Highlights (Continued)
Selected data for each share of the Portfolio outstanding throughout the period
were as follows:
The Real Estate Investment Trust Portfolio
- -------------------------------------------------------------------------------
12/6/95(1)
to
10/31/96
Net asset value, beginning of period $10.000
Income from investment operations:
Net investment income 0.6515
Net realized and unrealized
gain from security transactions 1.9385
------
Total from investment operations 2.5900
------
Less distributions:
Dividends from net investment income (0.1000)
Distributions from net realized gain
from security transactions --
-------
Total distributions (0.1000)
-------
Net asset value, end of period $12.4900
--------
Total return 26.12%
Ratios/supplemental data:
Net assets, end of period (000 omitted) $ 26,468
Ratio of expenses to average net assets 0.89%(2)
Ratio of net investment income to average net assets 6.70%(3)
Portfolio turnover 109%
Average commission rate paid $0.06
- -------------------------------------------------------------------------------
1 Date of initial sale; ratios have been annualized and total return has not
been annualized.
2 Ratio of expenses to average net assets prior to expense limitation was
1.02% for the period ended 10/31/96.
3 Ratio of net investment income to average net assets prior to expense
limitation was 6.57% for the period ended 10/31/96.
<PAGE>
7. Financial Highlights (Continued)
Selected data for each share of the Portfolio outstanding throughout the period
were as follows:
The Fixed Income Portfolio
- -------------------------------------------------------------------------------
3/12/96(1)
to
10/31/96
Net asset value, beginning of period $10.0000
Income from investment operations:
Net investment income 0.3856
Net realized and unrealized
gain from security transactions 0.0100
-------
Total from investment operations 0.3956
-------
Less distributions:
Dividends from net investment income (0.3856)
Distributions from net realized gain
from security transactions --
-------
Total distributions (0.3856)
-------
Net asset value, end of period $10.0100
-------
Total return 4.08%
Ratios/supplemental data:
Net assets, end of period (000 omitted) $ 10,518
Ratio of expenses to average net assets 0.53%(2)
Ratio of net investment income to average net assets 6.14%(3)
Portfolio turnover 232%
- -------------------------------------------------------------------------------
1 Date of initial sale; ratios have been annualized and total return has not
been annualized.
2 Ratio of expenses to average net assets prior to expense limitation was
1.20% for the period ended 10/31/96.
3 Ratio of net investment income to average net assets prior to expense
limitation was 5.47% for the period ended 10/31/96.
<PAGE>
7. 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 Year 2/4/92(1)
Ended Ended Ended Ended to
10/31/96 10/31/95 10/31/94 10/31/93 10/31/92
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 13.1200 $13.1100 $11.9900 $ 9.5000 $10.0000
Income (loss) from investment operations:
Net investment income 0.5063 0.4749 0.1440 0.2414 0.2282
Net realized and unrealized
gain (loss) from security
transactions 1.7937 0.0011 1.2360 2.5686 (0.6282)
-----------------------------------------------------------------
Total from investment
operations 2.3000 0.4760 1.3800 2.8100 (0.4000)
-----------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.4900) (0.1700) (0.1600) (0.3200) (0.1000)
Distributions from net realized gain
from security transaction (0.1500) (0.2960) (0.1000) none none
-----------------------------------------------------------------
Total distributions (0.6400) (0.4660) (0.2600) (0.3200) (0.1000)
-----------------------------------------------------------------
Net asset value, end of period $ 14.7800 $13.1200 $13.1100 $11.9900 $ 9.5000
-----------------------------------------------------------------
Total return 18.12% 3.91% 11.66% 30.28% (5.44%)
Ratios/supplemental data:
Net assets, end of period
(000 omitted) $299,950 $156,467 $ 70,820 $ 24,288 5,966
Ratio of expenses to
average net assets 0.89% 0.90% 0.94%(2) 0.96%(2) 0.96%(2)
Ratio of net investment
income to average net assets 4.36% 4.81% 1.36%(3) 2.98%(3) 4.67%(3)
Portfolio turnover 8% 20% 22% 28% 2%
Average commission rate paid $0.02 N/A N/A N/A N/A
</TABLE>
1 Date of initial sale; ratios and total return have been annualized.
2 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.
3 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.
<PAGE>
7. Financial Highlights (Continued)
Selected data for each share of the Portfolio outstanding throughout the period
were as follows:
The Labor Select International Equity Portfolio
- -------------------------------------------------------------------------------
12/19/95(1)
to
10/31/96
Net asset value, beginning of period $10.0000
Income from investment operations:
Net investment income 0.4785
Net realized and unrealized
gain from security transactions 1.3115
--------
Total from investment operations 1.7900
--------
Less distributions:
Dividends from net investment income (0.1000)
Distributions from net realized gain
from security transactions --
--------
Total distributions (0.1000)
--------
Net asset value, end of period $11.6900
--------
Total return 17.97%
Ratios/supplemental data:
Net assets, end of period (000 omitted) $ 23,154
Ratio of expenses to average net assets 0.92%(2)
Ratio of net investment income to average net assets 6.64%(3)
Portfolio turnover 7 %
Average commission rate paid $ 0.03
- -------------------------------------------------------------------------------
1 Date of initial sale; ratios have been annualized and total return has not
been annualized.
2 Ratio of expenses to average net assets prior to expense limitation was
1.30% for the period ended 10/31/96.
3 Ratio of net investment income to average net assets prior to expense
limitation was 6.26% for the period ended 10/31/96.
<PAGE>
7. 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 Year 11/30/92(1)
Ended Ended Ended to
10/31/96 10/31/95 10/31/94 10/31/93
<S> <C> <C> <C> <C>
Net asset value, beginning of period $11.0400 $ 9.7900 $11.0900 $10.0000
Income from investment operations:
Net investment income 0.7774 0.7357 0.4189 0.9547
Net realized and unrealized
gain (loss) from security transactions 0.7246 0.9243 (0.1929) 0.7433
------------------------------------------------------
Total from investment operations 1.5020 1.6600 0.2260 1.6980
------------------------------------------------------
Less distributions:
Dividends from net investment income (0.7200) (0.4100) (0.9490) (0.6080)
Distributions from net realized gain
from security transactions (0.2020) none (0.5770) none
------------------------------------------------------
Total distributions (0.9220) (0.4100) (1.5260) (0.6080)
------------------------------------------------------
Net asset value, end of period $ 11.6200 $11.0400 $ 9.7900 $11.0900
======================================================
Total return 16.40% 17.38% 2.07% 18.96%
Ratios/supplemental data:
Net assets, end of period (000 omitted) $252,068 $ 99,161 $ 42,266 $ 29,313
Ratio of expenses to average net assets 0.60%(2) 0.60%(2) 0.62%(2) 0.62%(2)
Ratio of net investment income to average net assets 8.52%(3) 6.73%(3) 3.62%(3) 10.68%(3)
Portfolio turnover 63% 77% 205% 198%
</TABLE>
- --------------------------------------------------------------------------------
1 Date of initial sale; ratios and total return have been annualized.
2 Ratio of expenses to average net assets prior to expense limitation was
0.66% for the year ended 10/31/96, 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.
3 Ratio of net investment income to average net as sets prior to expense
limitation was 8.46% for the year ended 10/31/96, 6.65% for the year ended
10/31/95, 3.48% for the year ended 10/31/94, and 10.42% for the period from
11/30/92 to 10/31/93.
<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 of The Defensive
Equity Portfolio, The Aggressive Growth Portfolio, The Real Estate Investment
Trust Portfolio, The Fixed Income Portfolio, The International Equity Portfolio,
The Labor Select International Equity Portfolio, and The Global Fixed Income
Portfolio of Delaware Pooled Trust, Inc. (the "Fund") as of October 31, 1996,
and the related statements of operations for the period then ended, the
statements of changes in net assets for each of the periods presented therein,
and the financial highlights for each period from the date of initial public
offering of the respective Portfolios through October 31, 1996. 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, 1996, 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 Real Estate
Investment Trust Portfolio, The Fixed Income Portfolio, The International Equity
Portfolio, The Labor Select International Equity Portfolio, and The Global Fixed
Income Portfolio of Delaware Pooled Trust, Inc. at October 31, 1996, the results
of their operations for the period then ended, the changes in their net assets
for each of the periods presented therein, and the financial highlights for each
period from the date of the initial public offering of the respective Portfolios
through October 31, 1996, in conformity with generally accepted accounting
principles.
Ernst & Young LLP
Philadelphia, Pennsylvania
December 12, 1996
<PAGE>
Delaware Pooled Trust, Inc.
Fund Officers and Portfolio Managers
Wayne A. Stork
Chairman
Winthrop S. Jessup
President and Chief ExecutiveOfficer
David G. Tilles
Managing Director and Chief Investment Officer
Delaware International Advisers Ltd.
Edward N. Antoian
Vice President and Senior Portfolio Manager
Steven R. Brody
Senior Vice President and Director of Real
Estate Operations
Lincoln Investment Management, Inc. (subadviser to
The Real Estate Investment Trust Portfolio)
George H. Burwell
Vice President and Senior Portfolio Manager
George E. Deming
Vice President and Senior Portfolio Manager
Gerald S. Frey
Vice President and Senior Portfolio Manager
Clive A. Gillmore
Director and Senior Portfolio Manager
Lawrence T. Kissko
Vice President, Real Estate Equity
Lincoln Investment Management, Inc. (subadviser to
The Real Estate Investment Trust Portfolio)
Gary A. Reed
Vice President and Senior Portfolio Manager
John F. Robertson
Assistant Vice President, Real Estate Investments
Lincoln Investment Management, Inc. (subadviser to
The Real Estate Investment Trust Portfolio)
Timothy W. Sanderson
Director and Senior Portfolio Manager
Ian G. Sims
Director and Senior Portfolio Manager
Babak Zenouzi
Vice President and Portfolio Manager
Maria E. Pollack
Assistant Vice President and Administrative Manager
<PAGE>
Custodians
The Chase Manhattan Bank
4 Metrotech Center
Brooklyn, New York 11245
(custodian for The Real Estate Investment Trust,
The International Equity, The Labor Select International
Equity, and The Global Fixed Income Portfolios)
Bankers Trust Company
One Bankers Trust Plaza
New York, New York 10006
(custodian for The Defensive Equity, The Aggressive
Growth, and The Fixed Income Portfolios)
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
<PAGE>
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
