Delaware Pooled Trust, Inc.-
The Defensive Equity Small/Mid-Cap Portfolio
Statement of Assets and Liabilities
October 31, 1997
ASSETS:
Deferred organization and
registration expenses $ 20,794
20,794
LIABILITIES:
Accounts payable
and other accrued expenses 20,794
20,794
NET ASSETS $ -0-
See accompanying notes<PAGE>
Delaware Pooled Trust, Inc.-
The Defensive Equity Small/Mid-Cap Portfolio
Notes to Financial Statements
October 31, 1997
Delaware Pooled Trust, Inc. (the AFund") 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 fourteen separate Portfolios
("Portfolios"). The Defensive Equity Portfolio, The Aggressive
Growth Portfolio, The Real Estate Investment Trust Portfolio,
The Fixed Income Portfolio, The High-Yield Bond Portfolio, The
International Equity Portfolio, The Emerging Markets Portfolio,
The Labor Select International Equity Portfolio, The Global
Equity Portfolio, The International Fixed Income Portfolio and
The Global Fixed Income Portfolio had commenced operations prior
to October 31, 1997. The Defensive Equity Small/Mid-Cap
Portfolio, The Real Estate Investment Trust Portfolio II and The
Limited-Term Maturity Portfolio had not commenced operations as
of October 31, 1997.
1. Significant Accounting Policies
The following accounting policies are in accordance with
generally accepted accounting principles and are consistently
followed by the Portfolio:
Security Valuation-Securities listed on an exchange will be
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 will be valued at the mean of the last quoted bid
and asked prices. Long-term debt securities will be valued by
an independent pricing service when such prices are believed to
reflect the fair value of such securities. Money market
instruments having less than 60 days to maturity will be valued
at amortized cost which approximates market value.
Federal Income Taxes-The Portfolio intends to continue to
qualify as a regulated investment company and make the requisite
distributions to shareholders. Accordingly, no provision for
federal income taxes has been made. Income and capital gain
distributions are determined in accordance with federal income
tax regulations which may differ from generally accepted
accounting principles.
Repurchase Agreements-The Portfolio may invest in a pooled cash
account along with other members of the Delaware Group of Funds.
The aggregate daily balance of the pooled cash account will be
invested in repurchase agreements secured by obligations of the
U.S. government. The respective collateral will be held by the
Portfolio=s custodian bank until the maturity of the respective
repurchase agreements. Each repurchase agreement is 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.
Use of Estimates-The preparation of financial statements in
conformity with generally accepted accounting principles
requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual
results could differ from those estimates.
Other-Expenses common to all AFunds@ within the Delaware Group
of Funds will be allocated amongst the funds on the basis of
average net assets. Security transactions will be recorded on
the date the securities are purchased or sold (trade date).
Costs used in calculating realized gains and losses on the sale
of investment securities will be those of the specific
securities sold. Dividend income will be recorded on the ex-
dividend date and interest income will be recorded on an accrual
basis. Original issue discounts will be accreted to interest
income over the lives of the respective securities.
Organization and registration expenses will be amortized over a
five and two year period respectively, beginning on the date of
commencement of operations. No amortization expense has been
recognized as of October 31, 1997.
2. Investment Management and Distribution Agreement
In accordance with the terms of the Investment Management
Agreement, the Portfolio will pay Delaware Management Company,
Inc. (DMC), the Investment Manager of the Portfolio, an annual
fee which will be calculated daily at the rate of 0.65% of
average daily net assets.
DMC has undertaken voluntarily to waive its fee and reimburse
the Portfolio to the extent that annual operating expenses
exclusive of taxes, interest, brokerage commissions and
extraordinary expenses, exceed 0.79% of average net assets
through October 31, 1997.
3. Components of Net Assets
550,000,000 shares, $.01 par value, have been authorized to the
Fund with 50,000,000 shares allocated to the Portfolio.
<PAGE>
Notes to Financial Statements (Continued)
4. Financial Highlights
Selected data for each share of the Portfolio outstanding
throughout the period has been omitted since the Portfolio has
not commenced operations.
