<PAGE>
Delaware
Pooled
Trust
==========
1997
Annual Report
Page 4 Defensive Equity:
Markets Prove Both Turbulent and Resilient
Page 6 Aggressive Growth:
Wresting Returns From A Rebounding Market
Page 8 Real Estate Investment Trust:
Capitalizing On A Less Efficient Market
Page 10 Fixed Income:
Keeping Pace With a Rally
Page 12 High-Yield Bond:
Lower Quality Issues Lead the Pack
Page 14 International Equity:
Excelling in a Turbulent Market
Page 16 Labor Select International Equity:
Producing Exceptional Returns Amidst Turmoil
Page 18 Emerging Markets:
Looking to Europe, Latin America
Page 20 Global Equity:
Weightings Buoy Performance
Page 22 Global Fixed Income:
Providing Steady Returns
Page 24 International Fixed Income:
Strong Local Returns Fight Weak Currencies
<PAGE>
Contents
2 Total Returns
3 Portfolio Objectives
4 The Defensive Equity Portfolio Review
6 The Aggressive Growth Portfolio Review
8 The Real Estate Investment Trust
Portfolio Review
10 The Fixed Income Portfolio Review
12 The High-Yield Bond Portfolio Review
14 The International Equity Portfolio Review
16 The Labor Select International Equity
Portfolio Review
18 The Emerging Markets Portfolio Review
20 The Global Equity Portfolio Review
22 The Global Fixed Income Portfolio Review
24 The International Fixed Income
Portfolio Review
26 Financial Statements
Delaware Pooled Trust, Inc.
Delaware Pooled Trust, Inc., based in Philadelphia, is
a mutual fund that offers no-load, open-end equity and fixed-income
portfolios to institutional and affluent individual investors. Delaware
Pooled Trust is part of Delaware Management Company, a full-service
investment-management organization that invests more than $40 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.
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, The Fixed Income, and
The High-Yield Bond 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,
The Emerging Markets, The Global Equity, The Global Fixed Income, and The
International 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 Client Services, Delaware Pooled Trust, Inc., One Commerce Square,
Philadelphia, Pennsylvania 19103.
1997 ANNUAL REPORT o DELAWARE POOLED TRUST 1
<PAGE>
Total Returns
Periods ending October 31, 1997
<TABLE>
<CAPTION>
One Three Five Since
Average Annual Total Return* Year Years Years Inception
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
The Defensive Equity Portfolio 26.73% 23.75% 20.69% 19.27%
Standard & Poor's 500 Index 32.08 27.45 19.82 17.97
- ------------------------------------------------------------------------------------------------------------------------
The Aggressive Growth Portfolio 11.84 16.82 14.70 10.85
Russell 2000 Index 29.33 21.29 18.69 15.72
- ------------------------------------------------------------------------------------------------------------------------
The Real Estate Investment Trust Portfolio 46.50 -- -- 38.04
NAREIT Equity REIT Index 32.77 -- -- 29.48
- ------------------------------------------------------------------------------------------------------------------------
The Fixed Income Portfolio 7.09 -- -- 6.84
Lehman Brothers Government/Corporate
Intermediate Bond Index 7.49 -- -- 6.72
- ------------------------------------------------------------------------------------------------------------------------
The High-Yield Bond Portfolio** -- -- -- 17.92
Salomon Brothers
High-Yield Cash Pay Index -- -- -- 11.96
- ------------------------------------------------------------------------------------------------------------------------
The International Equity Portfolio 11.01 10.86 14.66 11.85
Morgan Stanley Capital International EAFE Index 4.63 4.82 11.75 7.82
- ------------------------------------------------------------------------------------------------------------------------
The Labor Select International Equity Portfolio 16.01 -- -- 18.28
Morgan Stanley Capital International EAFE Index 4.63 -- -- 4.34
- ------------------------------------------------------------------------------------------------------------------------
The Emerging Markets Portfolio** -- -- -- (8.00)
Morgan Stanley Capital International
Emerging Markets Free Index -- -- -- (17.39)
- ------------------------------------------------------------------------------------------------------------------------
The Global Equity Portfolio** -- -- -- (4.47)
Morgan Stanley Capital International World Index -- -- -- (5.28)***
- ------------------------------------------------------------------------------------------------------------------------
The Global Fixed Income Portfolio 5.59 12.99 -- 11.75
Salomon Brothers World Government Bond Index 2.62 7.60 -- 8.14
- ------------------------------------------------------------------------------------------------------------------------
The International Fixed Income Portfolio** -- -- -- 7.11
Salomon Brothers Non-U.S
World Government Bond Index -- -- -- 5.34
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Past performance cannot guarantee 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
1992, Delaware Management Company, Inc. or Delaware International
Advisers Ltd., as relevant, has voluntarily agreed to waive its
management fee and pay certain expenses of the applicable Portfolios to
the extent necessary to limit annual operating expenses (excluding taxes,
interest, brokerage commissions, and extraordinary expenses) to certain
levels specified in Delaware Pooled Trust's prospectus. In the absence of
those waivers, 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.
*** This return for the MSCI World Index represents performance for the month
of October. In comparing this with the performance of The Global Equity
Portfolio, keep in mind that the return shown here for the Portfolio
represents performance since its inception on October 15, 1997.
+ The inception date for each Portfolio is as follows: Defensive Equity,
February 3, 1992; Aggressive Growth, February 27, 1992; Real Estate
Investment Trust, December 6, 1995; Fixed Income, March 12, 1996;
High-Yield Bond, December 2, 1996; International Equity, February 4,
1992; Labor Select International Equity, December 19, 1995; Emerging
Markets, April 14, 1997; Global Equity, October 15, 1997; Global Fixed
Income, November 30, 1992; and International Fixed Income, April 11,
1997. The returns for each index have been calculated from the start of
the month closest to the corresponding Portfolio's inception date.
2 DELAWARE POOLED TRUST o 1997 ANNUAL REPORT
<PAGE>
Portfolio Objectives
The Defensive Equity Portfolio seeks a maximum long-term total return,
consistent with reasonable risk. It seeks to achieve its objective 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. It
seeks to achieve its objective 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. It seeks to achieve its objective by
investing in diversified investment-grade bonds, including U.S. government,
mortgage-backed, corporate, and other fixed-income securities.
The High-Yield Bond Portfolio seeks high total return relative to other
fixed-income investments. The Portfolio will be invested primarily in bonds
rated B or higher by Standard & Poor's Rating Group or B3 or higher by
Moody's Investors Service, Inc.
The International Equity Portfolio seeks to achieve a maximum long-term total
return. It seeks to achieve its objective by investing primarily in the
common 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 equity securities that are considered
undervalued, based on fundamental analysis.
The Labor Select International Equity Portfolio seeks to achieve a maximum
long-term total return. It seeks to achieve its objective by investing
primarily in the common 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 equity securities that
are considered undervalued, based on fundamental analysis, and that are
compatible with certain investment policies or restrictions followed by
organized labor.
The Emerging Markets Portfolio seeks to achieve long-term capital
appreciation. It seeks to achieve its objective by investing primarily in
the common stocks of issuers located or operating in emerging countries.
The Global Equity Portfolio seeks long-term growth of capital without undue
risk to principal. It seeks to achieve its objective by investing in global
securities that provide the potential for capital appreciation and income.
The Global Fixed Income Portfolio seeks to achieve current income, consistent
with the preservation of investors' principal. It seeks to achieve its
objective by investing primarily in fixed-income securities that may also
provide the potential for capital appreciation. 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.
The International Fixed Inc ome Portfolio seeks to achieve current income,
consistent with the preservation of investors' principal. It seeks to achieve
its objective by investing primarily in fixed-income securities of
international (non-U.S.) markets that may also provide the potential for capital
appreciation.
1997 ANNUAL REPORT o DELAWARE POOLED TRUST 3
<PAGE>
Defensive Equity:
Markets Prove Both Turbulent and Resilient
The seemingly infallible stock market, as measured by the Standard & Poor's
500 Index, went 84 straight months without a 10% decline. It never made it to
month #85. On October 27, the S&P 500 plummeted nearly 7%. That left the index
down more than 10% from its 12-month high, signaling an official "correction."
The Dow Jones Industrial Average witnessed a 7.2% drop on "Bloody Monday,"
bringing its total decline from August highs to 13.3%. Despite this disruption
in the market, fiscal 1997 proved to be another exceptional year of
performance for the 500 largest stocks in the U.S.; the S&P returned 32.08%.
While The Defensive Equity Portfolio outperformed the index in the third
quarter, it lagged the index for the year ending October 31 and posted a
26.73% return.
Interest rates not only remained low in 1997, but they continued to drop
after a peak in April. Meanwhile, both inflation and unemployment levels
remained uncharacteristically in synch-low, that is. In the half-dozen
meetings the Federal Reserve Board held in 1997, only once did Mr. Greenspan
raise rates-an important vote of confidence that he believes the economy is
not overheating despite high valuations in stock prices.
Over the past 12 months, we have augmented our weighting in the
banking/finance/insurance sector. This has benefited the portfolio's
performance, as the consolidation trend in the banking and financial services
industries has continued this year. Returns in this sector were fueled in
part by mergers and acquisitions as well as share repurchases. Our consumer
growth and capital goods sectors also posted strong numbers for the
portfolio. Telecommunications and basic-industry stocks were among the
poor-performing sectors for the period, and tempered returns.
We will continue to overweight the financial sector, where we expect earnings
growth and dividends to be above average and where we believe the
consolidation
<PAGE>
Average Annual Total Return
Periods ending October 31, 1997
One Year Five Years Since Inception
26.73% 20.69% 19.27%
Over the past 12 months, The Defensive Equity Portfolio has posted solid numbers
in a volatile stock market
Growth of $10,000*
<TABLE>
<CAPTION>
The Defensive The Defensive
Equity Portfolio S&P 500 Index Equity Portfolio S&P 500 Index
---------------- ------------- ---------------- -------------
<S> <C> <C> <C> <C> <C> <C>
2/3/92 $10,000 1/31/92 $10,000 9/30/94 $14,381 $12,210
6/30/92 $10,550 $10,103 12/28/94 $14,026 $12,207
9/30/92 $10,741 $10,423 3/31/95 $15,425 $13,401
12/31/92 $11,355 $10,953 6/30/95 $16,486 $14,676
3/31/93 $12,255 $11,432 9/29/95 $17,776 $15,844
6/30/93 $12,527 $11,480 12/27/95 $18,712 $16,797
9/30/93 $13,233 $11,780 3/29/96 $19,799 $17,698
12/30/93 $13,585 $12,057 6/28/96 $20,166 $18,491
3/31/94 $13,321 $11,599 9/30/96 $21,021 $19,062
6/20/94 $13,817 $11,638 12/31/96 $22,353 $20,652
3/31/97 $23,090 $21,205
6/30/97 $26,534 $24,901
9/30/97 $28,860 $26,768
10/31/97 $27,509 $25,874
</TABLE>
* 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 Standard & Poor's 500 Index is an unmanaged index
and a theoretical measure of stock-market performance rather than an actual
available investment.
4 DELAWARE POOLED TRUST o 1997 ANNUAL REPORT
<PAGE>
trend will persist. Our holdings will reflect our emphasis on pharmaceutical
companies, whose high growth prospects and successful new drug approvals make
this sector a dynamic area for solid returns, in our view. We also will favor
the capital goods, consumer cyclical, basic-material, and energy sectors. The
Portfolio will continue to reflect equities with above-average dividend yields
that are bought at a discount to the market; the Portfolio will also remain
broadly diversified across a number of sectors.
Portfolio Manager
George E. Deming
* Has managed the Portfolio since its inception
* Joined Delaware in 1978... previously at White,
Weld & Co.
* Thirty years of investment experience
* Earned bachelor's degree at the University of Vermont
* Earned master's degree in international affairs at the
University of Pennsylvania's Wharton School
* Based in Philadelphia
=======================================================
Portfolio Profile
October 31, 1997
Total net assets $81.1 million
Inception date February 3, 1992
Asset composition (based on total net assets)
Common stocks 95.7%
Cash equivalents and other assets 4.3%
Number of holdings 64
Top 10 holdings
1. American Home Products
2. Baxter International
3. Summit Bancorp
4. Pitney Bowes
5. Imperial Chemical Industries
6. Bristol Myers Squibb
7. AON
8. Bank of Boston
9. BCE
10. Banc One
Industry composition
Banking/finance/insurance 27.66%
=============================================
Healthcare/pharmaceuticals 12.44%
====================
Energy 10.72%
=================
Chemicals 6.74%
==========
Telecommunications 6.55%
==========
Food/beverage/tobacco 3.79%
=====
Automobiles/automotive parts 3.49%
=====
Paper/forest products 3.13%
======
Transportation/shipping 3.02%
=====
Electronics/electrical 3.00%
======
Environmental services 2.83%
====
Cable/media/publishing 1.89%
===
Consumer products 1.71%
===
Leisure/lodging/entertainment 1.53%
===
Retail 1.53%
===
Metals/mining 1.33%
==
Aerospace/defense 1.08%
==
Miscellaneous 3.23%
======
Cash and other 4.33%
========
1997 ANNUAL REPORT o DELAWARE POOLED TRUST 5
<PAGE>
Aggressive Growth:
Wresting Returns From A Rebounding Market
Turn, turn, turn. That's what the stock market seemed to begin to do in May,
rotating the market capitalization wheel until it found good values. The market
leadership, dominated by blue chips for the past several years, shifted to
smaller issues as earnings and growth prospects for those companies began to
look more attractive. That recovery in the second half bolstered the Russell
2000 Index to a 29.33% return for fiscal 1997. However, the underperformance of
the business services and healthcare sectors dragged down the performance of The
Aggressive Growth Portfolio, which posted an 11.84% return for the same period.
The comeback story of small-cap stocks continued into the third quarter. The
Russell 2000 Index turned heads with a 2.52% return in August alone, a month in
which most major equity benchmarks posted negative numbers. The Russell 2000's
third-quarter return was double that of the S&P 500, as earnings momentum trends
continued to diverge between the two indexes. But even more intriguing is the
end-of-quarter performance figures for the S&P 400 MidCap Index. That index of
mid-cap stocks beat out the Russell 2000 and the S&P 500, returning 16.08% for
the quarter and 31.16% year-to-date. Price/earnings multiples for small and
mid-cap stocks became undervalued relative to those of the S&P 500, although it
became harder in the third quarter to find the deep price discounts that were
commonplace before the small-cap rally began in May. The increased liquidity
from a steady flow of initial public offerings was easily absorbed by the demand
for smaller issues.
Among other important factors driving the raging small-cap market were
interest rates that continued to drop through the third quarter since their
peak in April. Interest rates not only remained low in 1997, but they
continued to drop after their April highs. Meanwhile, both inflation and
unemployment levels remained uncharacteristically in synch-low, that is. In
the half-dozen meetings the Federal Reserve Board held in 1997,
<PAGE>
Average Annual Total Return
Periods ending October 31, 1997
- ---------------------------------------------------------
One Year Five Years Since Inception
11.84% 14.70% 10.85%
- ---------------------------------------------------------
Over the past 12 months, The Aggressive Growth Portfolio has continued to climb
in value amid varied overall market performance
Growth of $10,000*
<TABLE>
<CAPTION>
The Aggressive The Aggressive
Growth Portfolio Russell 2000 Index Growth Portfolio Russell 2000 Index
---------------- ------------------ ---------------- ------------------
<S> <C> <C> <C> <C> <C>
2/27/92 $10,000 $10,000 9/30/94 $11,338 $12,660
6/30/92 $ 8,400 $ 9,002 12/23/94 $10,315 $12,423
9/30/92 $ 8,700 $ 9,260 3/31/95 $11,830 $12,996
12/31/92 $10,137 $10,642 6/30/95 $12,438 $14,214
3/31/93 $ 9,716 $11,097 9/30/95 $13,683 $15,618
6/30/93 $10,147 $11,339 12/27/95 $14,031 $15,957
9/30/93 $11,069 $12,330 3/29/96 $15,265 $16,772
12/30/93 $11,379 $12,654 6/23/96 $16,256 $17,611
3/31/94 $11,267 $12,318 9/28/96 $16,840 $17,672
6/30/94 $10,418 $11,838 12/31/96 $16,333 $18,592
3/29/97 $15,008 $17,631
6/28/97 $16,937 $20,489
9/28/97 $18,721 $23,539
10/29/97 $17,947 $22,505
</TABLE>
* 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 Index is an unmanaged index and a
theoretical measure of stock-market performance rather than an actual
available investment.
6 DELAWARE POOLED TRUST o 1997 ANNUAL REPORT
<PAGE>
only once did Mr. Greenspan raise rates-an important vote of confidence that he
believes the economy is not overheating despite high valuations in stock prices.
Over the past 12 months, we have increased our weighting in the technology and
financial sectors. This has benefited the Portfolio's performance, as tech
stocks led the way in the small and mid-cap rallies this year. Meanwhile, poor
returns from select business services stocks in the second half, as well as
weakness in the healthcare industry, tempered returns.
We will continue to overweight the consumer services and technology sectors,
which we believe offer the best combination of value and growth potential. While
we are gradually increasing our weighting in financial issues, we will keep most
other areas near the benchmark.
=====================================================
Portfolio Manager
Gerald S. Frey
* Has managed the Portfolio since 1996
* Previous position: senior director at Morgan Grenfell Capital Management
* Nearly 20 years of investment management
experience
* Earned bachelor's degree from Bloomsburg University
* Earned MBA from Wilkes College
* Based in Philadelphia
<PAGE>
=====================================================
Portfolio Profile
October 31, 1997
Total net assets $10.3 million
Inception date February 27, 1992
Asset composition (based on total net assets)
Common stocks 89.9%
Cash equivalents and other assets 10.1%
Number of holdings 77
Top 10 holdings
1. Philip Services
2. CompUSA
3. AES
4. Compuware
5. MedPartners
6. Health Management Associates (class A)
7. CUC International
8. Bed, Bath & Beyond
9. CMAC Investment
10. BMC Software
Industry composition
Computers/technology 16.91%
=============================================
Retail 13.79%
=====================================
Healthcare/pharmaceuticals 12.06%
==================================
Banking/finance/insurance 9.25%
============================
Leisure/lodging/entertainment 7.82%
=========================
Environmental services 7.01%
=====================
Telecommunications 4.33%
===========
Utilities 2.80%
=========
Energy 2.51%
======
Textiles/apparel/furniture 2.23%
=======
Food/beverage/tobacco 1.95%
======
Cable/media/publishing 1.52%
====
Buildings/materials 1.01%
===
Transportation/shipping 0.95%
===
Automobiles/automotive parts 0.90%
==
Electronics/electrical 0.47%
=
Miscellaneous 4.37%
=============
Cash equivalents and other assets 10.12%
=================================
================================================================================
1997 ANNUAL REPORT o DELAWARE POOLED TRUST 7
<PAGE>
===============================================================================
Real Estate Investment Trust:
Capitalizing On A Less Efficient Market
The REIT market as measured by the NAREIT Equity REIT Index continued to soar in
fiscal 1997. The Real Estate Investment Trust Portfolio soared even higher,
returning 46.50% for the year ending October 31 and handily beating the index's
32.77% performance.
Our outperformance was due largely to our substantial weighting in the hotel and
office/industrial sectors, which were the best performing industries for fiscal
1997. Stock selection also added significant value, as we are able to find and
capitalize on what we see as inefficiencies in the REIT market. One such example
in the office/industrial REIT category was Brandywine Realty, which returned
68.8% for fiscal 1997. Two of our picks in the hotel sector have also turned in
impressive performances for the entire period: Starwood Lodging and Patriot
American, which posted particularly dazzling returns for fiscal 1997 (106.9% and
92.8%, respectively). Those two REITs were our top two holdings, as of October
31.
Demand caught up with the flood of new issuance from the beginning of the year,
as increased liquidity and solid fundamentals of the REIT market have
attracted buyers from both dedicated REIT funds and other equity mutual
funds.
Office, hotel, and diversified REITs have all performed well over the past year,
while self-storage and retail sectors performed poorly. The valuation of REITs
still remains attractive, particularly when compared with large-cap stocks. The
NAREIT Equity REIT Index now has a yield advantage of roughly 400 basis points
over the S&P 500. When you add in better earnings growth and lower multiples,
REITs look very attractive when compared with blue-chip stocks.
Going forward, we plan to overweight the office/industrial and full-service
hotel sectors, which have been among the top-performing areas year-to-date.
We remain underweighted in retail and self-storage REITs. While there is
currently a threat of overbuilding in self-storage, we believe this sector
holds good return potential. There is
<PAGE>
Average Annual Total Return
Periods ending October 31, 1997
- ---------------------------------------------
One Year Since Inception
46.50% 38.04%
- ---------------------------------------------
The Real Estate Investment Trust has
outperformed the index each quarter since
its inception in December of 1995
Growth of $10,000*
The Real Estate
NAREIT Equity Investment Trust
REIT Index Portfolio
- -------------- ----------------
$10,000 11/30/95 $10,000 12/6/95
$10,165 $10,330 12/27/95
$10,284 $10,562.3 1/31/96
$10,227 $10,633 2/25/96
$10,280 $10,693.6 3/29/96
$10,545 $10,663.3 4/30/96
$10,682 $10,956.1 5/31/96
$10,762 $11,269.1 6/28/96
$11,186 $11,249 7/31/96
$11,381 $11,824.5 8/30/96
$11,719 $12,157.8 9/30/96
$12,253 $12,612.1 10/31/96
$13,526 $13,228.1 11/29/96
$13,678 $13,692.7 12/31/96
$13,650 $15,033.5 1/31/97
$13,622 $15,238 2/28/97
$13,248 $15,499.4 3/31/97
$13,638 $14,954 4/30/97
$14,301 $15,442.6 5/30/97
$14,742 $16,340.3 6/30/97
$14,707 $17,215.2 7/31/97
$15,991 $17,249.3 8/29/97
$15,559 $18,942.5 9/30/97
$15,559 $18,476.6 10/31/97
* 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 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.
Note: Funds such as The REIT Portfolio that concentrate investments in one
industry may involve greater risks than more diversified funds, including a
greater potential for volatility.
8 DELAWARE POOLED TRUST o 1997 ANNUAL REPORT
<PAGE>
still opportunity for the industry to consolidate further; the ten largest
self-storage REITs own only 16% of all storage facilities. One area of
opportunity in the retail sector is on the West Coast, where the consolidation
of retail centers in California and elsewhere looks favorable for retail REITs.
With their particularly innovative management teams, diversified REITs also
continue to demonstrate excellent return potential, in our opinion.
Portfolio Managers
===============================================================================
Steven R. Brody
* 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
* Has served as subadviser to the Portfolio since its inception
* Joined Lincoln in 1983...previously at Union Mutual Life Insurance
Company
* Earned bachelor's degree at Rensselaer Polytechnic Institute
* Earned MBA in finance at The State University of New York
* A chartered financial analyst
* Based in Fort Wayne
John F. Robertson
* Has been a 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 bachelor's degree at Wabash College
* Earned MBA in finance and real estate at Indiana University
* Based in Fort Wayne
Babak Zenouzi
* Has managed the 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>
================================================================================
Portfolio Profile
October 31, 1997
Total net assets $60.1 million
Inception date December 6, 1995
Asset composition (based on total net assets)
Common stocks 98.9%
Cash equivalents and other assets 1.1%
Number of holdings 40
Top 10 holdings
1. Starwood Lodging Trust
2. Patriot American Hospitality
3. Vornado Realty Trust
4. Crescent Real Estate Equities
5. Apartment Investment & Management
6. Equity Office Properties Trust
7. Prentiss Properties Trust
8. Essex Property Trust
9. Equity Residential Properties
10. Simon DeBartolo Group
Industry composition
Office/industrial REITs 35.21%
======================================
Hotel/diversified REITs 23.80%
================================
Multifamily REITs 13.73%
===================
Retail-strip center REITs 11.06%
===================
Mall REITs 5.20%
========
Manufactured-housing REITs 4.54%
=====
Self-storage REITs 3.67%
======
Health-care REITs 1.66%
====
Cash and other 1.13%
===
================================================================================
1997 ANNUAL REPORT o DELAWARE POOLED TRUST 9
<PAGE>
================================================================================
Fixed Income:
Keeping Pace With a Rally
As of October 31, interest rates dropped as bond prices rallied in the wake of
the week of carnage that began with Bloody Monday. The yield on the 30-year
Treasury bond ended fiscal 1997 at 6.14%. That was the culmination of a rally in
the second half that helped The Fixed Income Portfolio post a 7.09% return for
fiscal 1997, just 0.40 percentage points shy of the Lehman Brothers
Government/Corporate Intermediate Bond Index.
Interest rates not only remained low in 1997, but they continued to drop after a
peak in April. Meanwhile, both inflation and unemployment levels remained
uncharacteristically in synch-low, that is. In the half-dozen meetings the
Federal Reserve Board held in 1997, only once did Mr. Greenspan and the Fed
raise rates-an important vote of confidence that he believes the economy is not
overheating despite high valuations in stock prices. All of this made for a nice
environment for bonds in the second half. The investment-grade bond market in
general weathered the month of October particularly well, posting positive
numbers in a month when all major equity benchmarks were stuck in negative
territory. In general, it paid to take risks in the second half, as lower credit
quality and longer durations posted the best returns.
We increased our weighting in collateralized mortgage obligations over the
period. CMOs remain the largest sector weighting in the Portfolio (28.52%). We
slightly decreased our exposure to corporate and mortgage-backed bonds, as we
believe that only a minority of those securities are fairly priced now. Still,
we will continue to selectively buy mortgage securities that offer above-average
yields while still minimizing prepayment and credit risk. We continue to
maintain an AA average credit quality in the Portfolio.
<PAGE>
Average Annual Total Return
Periods ending October 31, 1997
- ------------------------------------------
One Year Since Inception
7.09% 6.84%
- ------------------------------------------
Since its inception a year-and-a-half ago, The Fixed Income Portfolio has
kept pace with the index and has outperformed at times
Growth of $10,000*
The Lehman Brothers
Fixed Income Government/Corporate
Portfolio Intermediate Index
------------ --------------------
3/12/96 $10,000 3/29/96 $10,000
$ 9,948 4/30/96 $ 9,913
$ 9,929 5/31/96 $ 9,905
$10,031 6/28/96 $10,011
$10,062 7/31/96 $10,040
$10,064 8/30/96 $10,048
$10,219 9/30/96 $10,188
$10,396 10/31/96 $10,368
$10,522 11/29/96 $10,505
$10,462 12/31/96 $10,438
$10,514 1/31/97 $10,478
$10,532 2/28/97 $10,498
$10,460 3/31/97 $10,426
$10,567 4/30/97 $10,548
$10,644 5/30/97 $10,636
$10,752 6/30/97 $10,733
$10,969 7/31/97 $10,951
$10,917 8/29/97 $10,896
$11,036 9/30/97 $11,023
$11,135 10/31/97 $11,145
* 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 performance rather than an actual available investment.
10 DELAWARE POOLED TRUST o 1997 ANNUAL REPORT
<PAGE>
The Portfolio's objective of developing a long-term yield advantage to its
benchmark necessitates that we emphasize non-Treasury sectors. We believe
that short-term price fluctuations (either up or down) will cancel out over
the long term, but the yield advantage will remain.
Portfolio Manager
Gary A. Reed
* 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
* Eighteen years of investment experience
* Earned a bachelor's degree at the University of Chicago
* Earned a master's degree in economics at Columbia University
* Based in Philadelphia
================================================================================
Portfolio Profile
October 31, 1997
Total net assets $30.4 million
Inception date March 12, 1996
Number of holdings 73
Top 10 holdings
1. U.S. Treasury Notes, 6.375%, 1/15/00
2. U.S. Treasury Notes, 5.875%, 2/15/00
3. Government National Mortgage Association,
6.50%, 11/01/27
4. Federal National Mortgage Association,
7.50%, 2/01/27
5. Government National Mortgage Association,
6.50%, 12/15/23
6. Residential Funding Mortgage Securities Series
96-S9 A10, 7.25%, 4/25/26
7. Government National Mortgage Association,
6.50%, 1/15/24
8. U.S. Treasury Notes, 6.375%, 8/15/02
9. Federal Home Loan Mortgage Corporation Series
29E, 6.50%, 6/25/20
10. NationsCredit Grantor Trust Series 97-2 A1,
6.35%, 4/15/14
Asset composition (based on total net assets)
Collateralized mortgage obligations 28.52%
===============================================================
Treasury bonds 22.81%
===================================
Corporate bonds 17.87%
============================
Asset-backed bonds 14.90%
=========================
Mortgage-backed bonds 13.20%
======================
Municipal bonds 2.12%
===
Cash equivalents and other assets 0.58%
=
- --------------------------------------------------------------------------------
1997 ANNUAL REPORT o DELAWARE POOLED TRUST 11
<PAGE>
================================================================================
High-Yield Bond:
Lower-Quality Issues Lead the Pack
The High-Yield Bond Portfolio returned 17.92% in its first 11 months of
operation, beating its benchmark by nearly six whole percentage points. The
high-yield market as measured by the Salomon Brothers High-Yield Cash Pay Index
posted an 11.96% return for the period.
Factors influencing the performance of the Portfolio included a strong
economy, low credit risk, and our emphasis on B-rated securities. Record new
issuance has been a consistent theme since the Portfolio's inception date in
December of 1996; according to Bear Stearns, new high-yield issuance totals
well over $75 billion thus far for 1997. That new issuance was absorbed by
strong retail and institutional demand. Solid profit margins and cash flows
helped high-yield issues deliver solid returns for the quarter. The near 12%
return of the index for the period also reflected a low level of default
rates and credit losses. Despite the fact that many companies are reporting
slower-than-expected earnings growth, good fundamentals persist and the
quality of the high-yield universe has continued to rise. Roughly 50% of the
market is now rated BB or better.
Lower quality securities racked up the highest returns during the period. The
more junior the bond and the longer its duration, the better it performed. The
Portfolio benefited greatly from an overweighting in B-rated securities (roughly
80% of holdings, as of October 31), which generally outperformed BB bonds. The
Portfolio's performance got an added boost due to our heavy concentration of new
issues, which typically have longer durations than the market.
We plan to maintain a quality bias in the Portfolio, keeping an emphasis on
Bs provided the economy remains strong and credit quality remains high. The
Portfolio will continue to de-emphasize cyclical issues, such as chemicals,
paper, and automobiles. We feel that at this
<PAGE>
Total Return
For the period December 2, 1996-October 31, 1997
17.92%
In its first nine months of operation, The High-Yield Bond Portfolio has
significantly outperformed the high-yield market in aggregate
Growth of $10,000*
Salomon Brothers
The High-Yield High-Yield Cash
Bond Portfolio Pay Index
-------------- ----------------
12/2/96 $10,000 $10,000
12/31/96 $10,125 $10,075
1/31/97 $10,326 $10,153
2/28/97 $10,640 $10,314
3/31/97 $10,447 $10,231
4/30/97 $10,528 $10,317
5/30/97 $10,877 $10,513
6/30/97 $11,114 $10,682
7/31/97 $11,321 $10,917
8/29/97 $11,342 $10,931
9/30/97 $11,697 $11,101
10/31/97 $11,792 $11,196
* 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 High-Yield Cash Pay Index is an
unmanaged index and a theoretical measure of bond-market performance rather
than an actual available investment.
12 DELAWARE POOLED TRUST o 1997 ANNUAL REPORT
<PAGE>
point in the economic cycle, the next major turn will probably be downward in
these areas. We will continue to underweight the cable/TV sector as well.
Portfolio Managers
Paul Matlack
* Has managed the Portfolio since its inception
* Joined Delaware in 1989
* Previously served as a loan officer in Mellon's Corporate Lending Division
and in the Special Industries Group at Provident National Bank
* Graduate of the University of Pennsylvania
* Earned an MBA in finance from George Washington University
* CFA charterholder
* Based in Philadelphia
Gerald T. Nichols
* Has managed the Portfolio since its inception
* Joined Delaware in 1989
* Previously an investment officer for a merchant banking firm with interests
in the insurance and thrift industries
* Graduate of the University of Kansas with a master's degree in finance and
a bachelor's degree in business administration
* CFA charterholder
* Based in Philadelphia
<PAGE>
================================================================================
Portfolio Profile
October 31, 1997
Total net assets $11.3 million
Inception date December 2, 1996
Number of holdings 43
Top 10 holdings
1. Chemical Leaman, 10.375%, 6/15/05
2. Portola Packaging, 10.75%, 10/1/05
3. Collins & Aikman, 10.00%, 1/15/07
4. Atrium, 10.50%, 11/15/06
5. Pen-Tab Industries, 10.875%, 2/1/07
6. Trump Atlantic City, 11.25%, 5/1/06
7. Hydrochem Industrial Services, 10.375%, 8/1/07
8. Insilco, 10.25%, 8/15/07
9. Dyersburg, 9.75%, 9/1/07
10. Doskocil Manufacturing, 10.125%, 9/15/07
Industry composition
Buildings/materials 12.65%
====================================================
Consumer products 11.97%
================================================
Energy 11.43%
=========================================
Leisure/lodging/entertainment 8.26%
==================================
Electronics/electrical equipment 7.33%
================================
Chemicals 6.50%
=======================
Packaging/containers 6.18%
=========================
Telecommunications 5.88%
======================
Food/beverage/tobacco 4.24%
==================
Transportation/shipping 4.13%
=================
Textiles/apparel/furniture 4.11%
====================
Environmental services 3.21%
============
Retail 2.29%
==========
Aerospace/defense 2.26%
=========
Metals/mining 2.06%
========
Computers/technology 1.03%
===
Cable/media/publishing 0.04%
=
Miscellaneous 3.27%
=============
Cash equivalents and other assets 3.16%
=============
- -------------------------------------------------------------------------------
1997 ANNUAL REPORT o DELAWARE POOLED TRUST 13
<PAGE>
===============================================================================
International Equity:
Excelling in a Turbulent Market
For the year ended October 31, 1997, The International Equity Portfolio
continued its tradition of superior performance in spite of turbulent world
markets by posting a gain more than double that of the Morgan Stanley Capital
International EAFE Index. The Portfolio's 11.01% return for fiscal 1997 bested
the index by 6.1 percentage points.
Several factors contributed to the Portfolio's outperformance:
* Our underweighting (in relation to the EAFE Index weighting) of
poorly-performing markets in the Far East. As the currency crisis that began in
Thailand spread to other Asian economies in the second and third quarters of
this year, our underweighting or avoidance altogether of Far East markets
benefited the Portfolio's overall performance. This was especially true in view
of the worldwide market declines witnessed in October. While the EAFE Index
posted a 7.7% drop in U.S. dollar terms for October alone, markets in Hong Kong,
Malaysia, Thailand, and Taiwan dropped more than 20% and Korea more than 30%
that same month. Currencies in the Far East continue to weaken against the U.S.
dollar. Our low exposure to those markets, as well as our underweighting in what
the manager believes to be an overvalued Japanese market-which fell over 18%
during the year-contributed significantly to the Portfolio's outperformance of
the EAFE Index. Our overweighted position in Australasia also contributed
positively to performance.
* Our overweighting in the United Kingdom market and select markets in
Continental Europe; the UK market rose 29% over the fiscal year, which helped
the overall performance of the Portfolio. With over 27% of assets invested in
that market, the UK is significantly overweighted versus the index's weight of
20%. As the European Monetary Union draws closer to reality, the economic
environment across Europe has generally
<PAGE>
Average Annual Total Return
Periods ending October 31, 1997
- ------------------------------------------------------
One Year Five Years Since Inception
11.01% 14.66% 11.85%
- ------------------------------------------------------
The International Equity Portfolio has continued to outperform the index in
fiscal 1997 despite the recent turmoil in many international markets Growth of
$10,000*
Morgan Stanley
Capital International The International
EAFE Index Equity Portfolio
--------------------- --------------------
1/31/92 $10,000 2/4/92 $10,000
6/30/92 $ 9,195 $10,189
9/30/92 $ 9,334 $ 9,858
12/31/92 $ 8,974 $ 9,959
3/31/93 $10,050 $11,014
6/30/93 $11,060 $11,283
9/30/93 $11,794 $12,074
12/30/93 $11,896 $12,918
3/31/94 $12,312 $13,035
6/30/94 $12,941 $13,204
9/30/94 $12,953 $13,544
12/28/94 $12,821 $13,306
3/31/95 $13,060 $13,668
6/30/95 $13,155 $13,910
9/29/95 $13,704 $14,737
12/27/95 $14,258 $15,124
3/29/96 $14,671 $15,942
6/28/96 $14,903 $16,381
9/30/96 $14,884 $16,809
12/31/96 $15,121 $17,702
3/31/97 $14,884 $18,680
6/30/97 $16,816 $20,759
9/30/97 $16,697 $20,735
10/31/97 $15,418 $19,021
* Past performance is not necessarily indicative of future results. Total
return assumes reinvestment of dividends and capital gains, as well as no
reductions for taxes. The Morgan Stanley Capital International EAFE Index is
an unmanaged index and a theoretical measure of 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.
14 DELAWARE POOLED TRUST o 1997 ANNUAL REPORT
<PAGE>
improved; this has led to a better environment for improved corporate
profitability. The Portfolio benefited from overweightings in select European
markets such as Belgium, the Netherlands, and Spain, as well as in the UK.
On the downside, low exposure to rising European markets such as Denmark,
Switzerland, and Finland also detracted from performance.
Our emphasis on individual security selection continues to be a key strategy
in attempting to outperform the market as a whole (as measured by the EAFE
Index). The Portfolio's emphasis on identifying stocks which are attractively
valued relative to the index is a strategy that can offer a particular
advantage in tumultuous international markets, in our view.
We expect to continue overweighting select markets in the United Kingdom,
Continental Europe, and Australasia. Our exposure to the Asian markets is
concentrated in Hong Kong and Singapore, which we believe to be better
positioned to withstand the current turmoil.
We will continue to use currency management as part of our investment
process, and will institute hedging on a defensive basis when appropriate.
================================================================================
Portfolio Manager
Timothy W. Sanderson
* 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
* Seventeen years of investment experience
* Graduate of University College, Oxford, England
* Based in London
<PAGE>
=================================================
Portfolio Profile
October 31, 1997
Total net assets $500.2 million
Inception date February 4, 1992
Asset composition (based on total net assets)
Common stocks 92.8%
Cash equivalents and other assets 7.2%
Number of holdings 54
Top 10 holdings
1. Electrabel (Belgium)
2. Great Universal Stores (U.K.)
3. Bass (U.K.)
4. Boots Company (U.K.)
5. Siemens (Germany)
6. West Japan Railway (Japan)
7. Telecom Corp. of New Zealand (New Zealand)
8. NAB (Australia)
9. Glaxo Wellcome (U.K.)
10. British Airways (U.K.)
Geographic composition
United Kingdom 27.32%
=======================================================
Japan 13.89%
=============================
Australia 10.38%
==================
Germany 8.32%
=============
France 7.97%
=============
Netherlands 6.67%
=============
Spain 4.93%
========
New Zealand 3.82%
=======
Belgium 3.24%
======
Hong Kong 2.61%
===
Malaysia 1.17%
==
Philippines 0.93%
==
Indonesia 0.64%
==
Singapore 0.58%
==
South Korea 0.33%
=
Cash and other 7.20%
==============
- --------------------------------------------------------------------------------
1997 ANNUAL REPORT o DELAWARE POOLED TRUST 15
<PAGE>
===============================================================================
Labor Select International Equity:
Producing Exceptional Returns Amidst Turmoil
The Labor Select International Equity Portfolio posted a return in excess of 16%
for fiscal 1997, beating the Morgan Stanley Capital International EAFE Index's
4.9% return by more than 11 percentage points.
Several factors contributed to the Portfolio's outperformance:
o Our underweighting (in relation to the EAFE Index weighting) of
poorly-performing markets in the Far East. As the currency crisis that began in
Thailand spread to other Asian economies in the second and third quarters of
this year, our underweighting or avoidance altogether of Far East markets
benefited the Portfolio's overall performance.
The Labor Select International Equity Portfolio focuses on markets which do not
appear on the AFL-CIO's banned list and are deemed to be non-emerging. Avoidance
of this volatile list of Asian and Latin American markets was a positive.
Japan--still the dominant market in the Asian region--had another bad year,
falling more than 15% in US dollar terms. Our stocks in Japan outperformed the
market. This fact, together with a significantly underweight position,
contributed to our outperformance.
o Our heavily overweight position in the United Kingdom was a major positive.
The market rose over 25% in local ters with the currency appreciating against
the dollar. Other European markets were fertile ground for us over the year.
Exposure to Belgium (29% local return), Spain (58%), Germany (42%), Netherlands
(52%), and France (27%) added significantly to returns. During the year, these
markets were adversely affected by weak currencies against the US dollar. Some
of your Deutschmark, French Franc, Belgium Franc, and Dutch Guilder exposure was
hedging during the year. This protected the Portfolio from some of this currency
weakness.
<PAGE>
Average Annual Total Return
Periods ending October 31, 1997
- ---------------------------------------------
One Year Since Inception
16.01% 18.28%
- ---------------------------------------------
Over the past 12 months, The Labor Select International Portfolio has widened
its performance advantage over the index
Growth of $10,000*
The Labor Select Morgan Stanley
International Capital International
Equity Portfolio EAFE Index
---------------------- ---------------------
$10,000 12/19/95 12/30/95 $10,000
$10,240 12/27/95 12/27/95 $10,041.1
$10,450.2 1/31/96 1/31/96 $10,075
$10,630.4 2/28/96 2/28/96 $10,289
$10,820.6 3/29/96 3/29/96 $10,588.1
$11,061.5 4/30/96 4/30/96 $10,393.3
$11,031.4 5/31/96 5/31/96 $10,451.8
$11,031.5 6/28/96 6/28/96 $10,146.3
$10,950.9 7/31/96 7/31/96 $10,168.5
$11,172.4 8/30/96 8/30/96 $10,438.7
$11,544.8 9/30/96 9/30/96 $10,331.9
$11,797.1 10/31/96 10/31/96 $10,743.1
$12,483.3 11/29/96 11/29/96 $10,604.6
$12,200.8 12/31/96 12/31/96 $10,233.4
$12,357.8 1/31/97 1/31/97 $10,401.2
$12,619.3 2/28/97 2/28/97 $10,438.7
$12,839 3/31/97 3/31/97 $10,494
$12,954.4 4/30/97 4/30/97 $11,177.1
$13,625.7 5/30/97 5/30/97 $11,793
$14,034.9 6/30/97 6/30/97 $11,984.1
$14,392.3 7/31/97 7/31/97 $11,088.9
$13,793.1 8/29/97 8/29/97 $11,709.8
$14,602.6 9/30/97 9/30/97 $10,812.9
$13,686 10/31/97 10/31/97 $10,812.9
* Past performance is not necessarily indicative of future results. Total
return assumes reinvestment of dividends and capital gains, as well as no
reductions for taxes. The Morgan Stanley Capital International EAFE Index is
an unmanaged index and a theoretical measure of 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.
16 DELAWARE POOLED TRUST o 1997 ANNUAL REPORT
<PAGE>
o Our significant exposure in Australia and New Zealand was a negative over the
year. Both local markets and currencies were affected by the negative sentiment
towards natural resources and commodities. The Portfolio's investments were
focused in the industrial sector; despite moderate market returns, this ensured
that we added value through stock selection.
o Lack of investments in Scandinavia and Switzerland, which were very strong,
was a detractor from stronger performance.
Our emphasis on individual security selection continues to be a key strategy in
attempting to outperform the international index as a whole. The Portfolio's
emphasis on stocks with above-average dividend yields and low price/earnings
multiples (versus those of the index) is a strategy that can offer a particular
advantage in tumultuous international markets, in our view.
We expect to continue overweighting select markets in the United Kingdom,
Continental Europe, and Australasia while underweighting the overvalued Japanese
equity market. At this time, we have no hedges out of international currencies
back into the US dollar. A period of US dollar strength since mid-1995 means
that most key international currencies are fairly valued against the US dollar.
========================================================
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
* Fourteen years of investment experience
* Graduate of Warwick University, England
* Based in London
<PAGE>
=========================================================
Portfolio Profile
October 31, 1997
Total net assets $50.9 million
Inception date December 19, 1995
Asset composition (based on total net assets)
Common stocks 87.5%
Cash equivalents and other assets 12.5%
Number of holdings 44
Top 10 holdings
1. GKN (U.K.)
2. Boots (U.K.)
3. Bass (U.K.)
4. Electrabel (Belgium)
5. Elf Aquitaine (France)
6. Royal Dutch Petroleum (Netherlands)
7. Glaxo Wellcome (U.K.)
8. Alcatel Alsthom (France)
9. Bayer (Germany)
10. West Japan Railway (Japan)
Geographic composition
United Kingdom 28.73%
========================================================
Japan 11.68%
======================
Australia 11.04%
====================
Germany 8.38%
============
France 7.82%
============
Netherlands 7.18%
=============
Spain 6.11%
=========
New Zealand 3.33%
=====
Belgium 3.25%
======
Cash and other 12.48%
=====================
- --------------------------------------------------------------------------------
1997 ANNUAL REPORT o DELAWARE POOLED TRUST 17
<PAGE>
Emerging Markets:
Looking to Europe, Latin America
For the period April 14-October 31, 1997 (since the Portfolio's inception), The
Emerging Markets Portfolio returned (8.0)%, outperforming the Morgan Stanley
Capital International Emerging Markets Free Index's (17.4)% return.
As the currency crisis that began in Thailand spread to other Asian economies in
the second and third quarters of this year, our substantial underweighting of
Far East markets benefited the Portfolio's overall performance. The MSCI
Emerging Markets Free Index posted a 9.4% drop in U.S. dollar terms in the third
quarter. But each geographic region had distinctly divergent performance: Europe
and the Middle East rose 10.3% and Latin America returned 4.1%, but Asia dipped
25.2% in that quarter. In October alone, markets in Hong Kong, Malaysia,
Thailand, and Taiwan dropped more than 20% and Korea more than 30%. Currencies
in the Far East continue to weaken against the U.S. dollar. Our low exposure to
those markets contributed significantly to the Portfolio's outperformance of the
index.
Our heavy European weightings in Greece and Turkey paid off, as those markets
returned about 15% each in the third quarter. And Russia's 18% third-quarter
return in particular helped keep the Portfolio's performance ahead of the
index's. Our second-largest weighting--Mexico--posted a 21.5% return for the
quarter.
Our emphasis on individual security selection continues to be a key strategy in
attempting to outperform the market as a whole. The Portfolio's emphasis on
stocks with low price/earnings multiples (versus those of the index) is a
strategy that can offer a particular advantage in tumultuous international
markets, in our view.
We expect to continue overweighting select markets in Europe, especially Russia,
Greece, and Hungary. At the same time, we anticipate maintaining a full
weighting in Latin America, with a slight underweighting in Brazil.
<PAGE>
Total Return
For the period April 14-October 31, 1997
(8.00)%
The Emerging Markets Portfolio has managed to significantly outperform the index
in its first six months, a tough time for emerging markets in aggregate
Growth of $10,000*
Morgan Stanley
Capital International The Emerging
Emerging Markets Markets
Free Index Portfolio
------------------------ ------------
4/30/97 $10,018 $10,000 4/14/97
5/30/97 $10,304 $10,570
6/30/97 $10,855 $11,190
7/31/97 $11,017 $11,230
8/29/97 $ 9,616 $10,290
9/30/97 $ 9,882 $10,790
10/31/97 $ 8,261 $ 9,200
* 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 Emerging
Markets Free 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.
18 DELAWARE POOLED TRUST o 1997 ANNUAL REPORT
<PAGE>
We plan to take advantage of new value opportunities in Asia, increasing our
position to a market weighting or overweighting in select Asian markets; our
target weighting in China is now 7%, versus the index's 5% weight. We also
expect to increase our weighting in Malaysia and Indonesia. Korea is one market
we expect to continue underweighting and possibly reduce our position even
further.
==============================================
Portfolio Managers
Robert Akester
* Has managed the Portfolio since its inception
* Joined Delaware in 1996
* Previously was a Director of Hill Samuel Investment Advisers Ltd
* Twenty-seven years of investment experience
* Earned a bachelor's degree in Statistics and Economics from University
College, London
* Associate of the Institute of Actuaries, with a certificate in Finance and
Investment
* Based in London
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
* Fourteen years of investment experience
* Graduate of Warwick University, England
* Based in London
<PAGE>
================================================================================
Portfolio Profile
October 31, 1997
Total net assets $18.6 million
Inception date April 14, 1997
Asset composition (based on total net assets)
Common stocks 92.6%
Cash equivalents and other assets 7.4%
Number of holdings 80
Top 10 holdings
1. Philippine Long Distance Telephone Company ADR (Philippines)
2. Tata Engineering & Locomotive GDR (India)
3. Vitro S.A. ADR (Mexico)
4. Rothmans of Pall Mall Berhad (Malaysia)
5. Petronas Dagangan Berhad (Malaysia)
6. Compania Anonima Nacional Telefonos de Venezuela (Venezuela)
7. Telecommunicacoes Brasileiras S.A. ADR (Brazil)
8. The India Fund (India)
9. Telefonos de Mexico S.A. (Mexico)
10. Elektrim Spolka Akcyjna (Poland)
Geographic composition
Brazil 10.40%
===============================================
Mexico 8.90%
====================================
Malaysia 7.39%
===============================
Hong Kong 6.60%
============================
India 5.99%
=========================
South Africa 5.30%
====================
Peru 5.21%
====================
Chile 4.86%
===================
Argentina 4.19%
================
Russia 3.56%
================
Turkey 3.55%
============
Israel 3.25%
============
Indonesia 3.21%
=============
Greece 2.96%
===========
Philippines 2.72%
============
Thailand 2.49%
=========
Taiwan 2.25%
=========
Hungary 2.21%
=========
Venezuela 2.10%
=========
Poland 2.03%
========
South Korea 1.68%
====
Egypt 0.98%
==
Slovenia 0.47%
==
Luxembourg 0.33%
=
Cash and other 7.37%
============================
1997 ANNUAL REPORT o DELAWARE POOLED TRUST 19
<PAGE>
================================================================================
Global Equity:
Weightings Buoy Performance
Despite tempestuous world markets, The Global Equity Portfolio weathered this
volatility relatively well in its first two weeks of operation. The Portfolio
posted a return of (4.47)%, as compared with the Morgan Stanley Capital
International World Index's (5.28)% return for the same period. Of course, in
light of the extremely short reporting period, such performance may not be
representative of longer-term results.
The recent investment environment has been marked by a significant dichotomy of
returns. Markets in North America and Europe have continued to show strong
returns, buoyed respectively by continued strong corporate profitability and
early indications of economic recovery. In the Pacific, the financial crisis in
Japan has continued to undermine economic growth while the devaluation of Asian
currencies has resulted in a significant deterioration in value throughout Asia.
Against that background, our investment strategy for the Portfolio has three key
elements. We are underweighting the two major world markets--the United States
and Japan. We believe investors have more than priced in continued strong growth
in the US market. The Japanese market, on the other hand, is expecting future
levels of profitability much higher than can reasonably be expected. In their
place, we are significantly overweighting those markets we believe to be
significantly undervalued: the United Kingdom, Australia, and New Zealand. The
strong economic growth, high levels of profitability, and reasonable valuations
make the UK our second largest geographic weighting and largest overweightingan
attractive market. We are taking a selective approach to markets in the Pacific
Basin and Continental Europe where we can identify stocks with attractive
valuations and a reasonable risk profile.
<PAGE>
Total Return
For the period October 15-October 31, 1997
- ------------------------------------------
(4.47)%
- ------------------------------------------
Having commenced operations in a
month marked by volatile global returns, The Global Equity Portfolio's
performance still kept ahead of its benchmark
Growth of $10,000*
The Global Equity
Portfolio
-----------------
$10,000 10/15/97
$10,000 10/16/97
$10,000 10/17/97
$ 9,964 10/20/97
$10,058 10/21/97
$10,000 10/22/97
$ 9,800 10/23/97
$ 9,706 10/24/97
$ 9,412 10/27/97
$ 9,259 10/28/97
$ 9,576 10/29/97
$ 9,459 10/30/97
$ 9,553 10/31/97
Note: Due to the short reporting period, comparable information on the MSCI
World Index is not available.**
* 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 World
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.
** See page 2 for the Morgan Stanley Capital International World Index's
return for the month of October.
20 DELAWARE POOLED TRUST o 1997 ANNUAL REPORT
<PAGE>
===============================================================================
Portfolio Managers
Robert L. Arnold
* Has served as a subadvisor to the Portfolio since its inception
* Furnishes recommendations, asset allocation advice,
research, and other services with respect to U.S. securities
* Joined Delaware in 1992
* Previously a planning analyst with Chemical Bank in New York
* Earned a bachelor's degree from Carnegie Mellon University and an MBA
from the University of Chicago
* Based in Philadelphia
Elizabeth A. Desmond
* Has managed the Portfolio since its inception
* Joined Delaware International in 1991
* Previously was a Pacific Basin equity analyst and senior portfolio manager
at Hill Samuel Investment Advisers Ltd.
* Graduate of Wellesley College and the masters program in East Asian studies
at Stanford University
* CFA charterholder
* Based in London
<PAGE>
================================================================================
Portfolio Profile
October 31, 1997
Total net assets $2.9 million
Inception date October 15, 1997
Asset composition (based on total net assets)
Common stocks 96.4%
Cash equivalents and other assets 3.6%
Number of holdings 57
Top 10 holdings
1. GKN (U.K.)
2. Boots (U.K.)
3. Glaxo Wellcome (U.K.)
4. Electrabel (Belgium)
5. Siemens (Germany)
6. Powergen (UK)
7. Bass (U.K.)
8. CSR Limited (Australia)
9. Chase Manhattan (US)
10. Taylor Woodrow (UK)
Geographic composition
United States 36.18%
==================================================
United Kingdom 22.41%
==========================
Australia 8.31%
============
Germany 6.63%
========
France 5.49%
=======
Japan 3.89%
=====
New Zealand 3.32%
====
Belgium 2.74%
====
Spain 2.01%
===
Hong Kong 1.65%
==
Netherlands 1.50%
==
Singapore 1.08%
==
Malaysia 0.75%
=
Indonesia 0.48%
=
Cash and other 3.56%
=====
- --------------------------------------------------------------------------------
1997 ANNUAL REPORT o DELAWARE POOLED TRUST 21
<PAGE>
===============================================================================
Global Fixed Income:
Providing Steady Returns
For the year ended October 31, the Global Fixed Income Portfolio returned 5.59%.
That far surpassed the return of the Salomon Brothers World Government Bond
Index, which posted a 2.62% return.
World bond markets in the aggregrate have had a good year, with the Salomon
Brothers World Government Bond Index up 8.7% in local currency terms. However,
returns to a dollar based investor have been eroded by a stronger US dollar. All
major bond markets have seen prices rise over the last twelve months. Inflation
has remained subdued around the world, even in the United States which is at a
late stage in economic expansion. European bond markets have continued to
benefit from the move towards currency union; EMU is likely to go ahead next
year with most European Union countries participating.
The US dollar has had a strong year with only the British pound matching it's
performance. Consequently overseas bonds have generally done less well in US
terms than domestic US debt. Our strategy of hedging European, New Zealand, and
Canadian currency exposure into the US dollar was positive for our performance.
These hedges have been gradually reduced over the year as the dollar rose back
up from undervalued levels.
As well as positive contributions from currency management, bond market choice
has also added to returns. The Portfolio has increased exposure to US dollar
bonds over the period to nearly match that of the index. Overweighted exposure
to Canadian bonds on a currency-hedged basis also added to performance, as have
selective moves in the European markets.
Going forward, the Portfolio remains strongly underweighted in Japan where real
yields are now very low. We also expect to overweight the dollar bloc markets of
Canada and new Zealand where real yields are relatively attractive.
<PAGE>
Average Annual Total Return
Periods ending October 31, 1997
- ---------------------------------------------
One Year Since Inception
5.59% 11.75%
- ---------------------------------------------
The Global Fixed Income Portfolio has widened its margin of outperformance
versus the index over the past fiscal year, thanks to active management of
securities and currencies
Growth of $10,000*
Salomon Brothers
World Government The Global Fixed
Bond Index Income Portfolio
---------------- ----------------
11/30/92 $10,000 $10,000
12/31/92 $10,060 $10,110
3/31/93 $10,596 $10,750
6/30/93 $10,905 $11,099
9/30/93 $11,399 $11,540
12/30/93 $11,393 $11,963
3/30/94 $11,394 $11,927
6/30/94 $11,470 $11,629
9/30/94 $11,604 $11,829
12/30/94 $11,661 $12,196
3/30/95 $12,935 $12,357
6/30/95 $13,625 $13,058
9/30/95 $13,482 $13,853
12/30/95 $13,880 $14,467
3/30/96 $13,620 $14,700
6/30/96 $13,675 $15,102
9/30/96 $14,050 $15,856
12/31/96 $14,384 $16,495
3/31/97 $13,789 $16,300
6/30/97 $14,207 $16,800
9/30/97 $14,388 $17,076
10/31/97 $14,687 $17,277
* 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.
22 DELAWARE POOLED TRUSTT o 1997 ANNUAL REPORT
<PAGE>
================================================================================
Portfolio Manager
Ian G. Sims
* 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
================================================================================
Portfolio Profile
October 31, 1997
Total net assets $431.1 million
Inception date November 30, 1992
Asset composition (based on total net assets)
Government bonds 75.6%
Corporate bonds 14.1%
Agency & Supranational bonds 6.1%
Cash 4.2%
Number of holdings 57
Top 10 holdings
1. U.S. Treasury Notes, 6.25%, 2/15/03
2. Netherlands Government, 8.25%, 9/15/07
3. U.S. Treasury Notes, 7.50%, 11/15/01
4. U.S. Treasury Notes, 6.125%, 7/31/00
5. Netherlands Government, 9.00%, 5/15/00
6. U.S. Treasury Notes, 7.875%, 11/15/04
7. Government of New Zealand, 8.00%, 4/15/04
8. Government of Canada, 10.25%, 3/15/14
9. Italian Government, 9.50%, 2/01/01
10. Government of New Zealand, 8.00%, 11/15/06
Geographic composition
United States 27.22%
=============================================
Germany 13.12%
====================
Netherlands 11.56%
===================
New Zealand 8.54%
==============
Canada 8.06%
============
Japan 6.84%
===========
Italy 5.54%
==========
United Kingdom 5.53%
==========
Sweden 2.87%
=====
Spain 2.66%
====
Denmark 1.92%
===
Cash and other 6.14%
============
- --------------------------------------------------------------------------------
1997 ANNUAL REPORT o DELAWARE POOLED TRUST 23
<PAGE>
===============================================================================
International Fixed Income:
Strong Local Returns Fight Weak Currencies
For the period April 11 to October 31, the International Fixed Income
Portfolio returned 7.11%. That compares with a return for the same period on
the Salomon Brothers Non-US World Government Bond Index of 5.34%.
World bond markets have had a good six-and-a-half months, with the Salomon
Brothers Non-US World Government Bond Index up over 5% in local currency
terms and up 7% in dollar terms. Most major bond markets have seen prices
rise over the last few months. Inflation has remained subdued around the
world, even in the United States which is at a stage in economic expansion.
European bond markets have continued to benefit from the move towards
currency union; EMU is likely to go ahead next year with most European Union
countries participating.
The US dollar gave up some of its early year gains over the review period.
Consequently overseas bonds have generally done better in US terms than in
local currency. Our strategy of hedging New Zealand and Canadian currency
exposure into the US dollar was positive for our performance, since these
currencies have been weak. These hedges have been reduced recently as the
dollar rose back up from undervalued levels. Corporate bonds weakened towards
the end of the fiscal year as the stock market's turmoil in October affected
those securities.
Going forward, the portfolio remains strongly underweight in Japan where real
yields are now very low and overweight the dollar block markets of Canada and
New Zealand where real yields are relatively attractive.
<PAGE>
Total Return
For the period April 11-October 31, 1997
- ----------------------------------------
7.11%
- ----------------------------------------
The International Fixed Income Portfolio has demonstrated strong performance
in the face of weakening currencies in select world markets
Growth of $10,000*
Salomon Brothers
Non-U.S. World Government The International Fixed
Bond Index Income Portfolio
------------------------- --------------------------
3/31/97 $10,000 4/11/97 $10,000
4/30/97 $ 9,797 5/30/97 $10,250
5/31/97 $10,158 6/30/97 $10,380
6/30/97 $10,282 7/31/97 $10,180
7/31/97 $10,014 8/29/97 $10,270
8/31/97 $10,059 9/30/97 $10,580
9/30/97 $10,304 10/31/97 $10,711
10/31/97 $10,534
* 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 Non-US 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.
24 DELAWARE POOLED TRUST o 1997 ANNUAL REPORT
<PAGE>
Portfolio Manager
Ian G. Sims
* 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
================================================================================
Portfolio Profile
October 31, 1997
Total net assets $33.7 million
Inception date April 11, 1997
Asset composition (based on total net assets)
Government bonds 66.8%
Corporate bonds 22.3%
Agency & Supranational bonds 8.4%
Cash 2.7%
Number of holdings 41
Top 10 holdings
1. Netherlands Government, 8.25%, 9/15/07
2. Bundesrepublik Deutscheland, 6.50%, 7/15/03
3. Government of New Zealand, 8.00%, 11/15/06
4. Italian Government, 12.00%, 1/01/03
5. Kingdom of Spain, 5.75%, 3/23/02
6. Republic of Finland, 5.50%, 2/09/01
7. Bundesrepublik Deutscheland, 8.375%, 5/21/01
8. International Bank of Reconstruction and
Development, 4.50%, 6/20/00
9. Government of New Zealand, 10.00%, 3/15/02
10. Deutsche Bank Finance NV, 8.25%, 1/07/04
Geographic composition
Germany 24.25%
==========================================
Japan 13.36%
======================
Netherlands 12.62%
=====================
New Zealand 9.57%
=================
Canada 9.04%
==============
Italy 8.07%
=============
United Kingdom 8.06%
===============
Spain 3.99%
========
Sweden 3.03%
=====
Denmark 2.93%
=====
Cash and other 5.08%
===========
1997 ANNUAL REPORT o DELAWARE POOLED TRUST 25
<PAGE>
Delaware Pooled Trust, Inc.: The Defensive Equity Portfolio
Statement of Net Assets
October 31, 1997
Number Market
of Shares Value
- -------------------------------------------------------------------------------
COMMON STOCK: 95.67%
- -------------------------------------------------------------------------------
Aerospace and Defense: 1.08%
General Dynamics 10,800 $ 876,825
-----------
876,825
-----------
- -------------------------------------------------------------------------------
Automobiles and Automotive Parts: 3.49%
- -------------------------------------------------------------------------------
Ford Motor 22,700 991,706
General Motors 17,200 1,104,025
LucasVarity ADR 21,500 733,688
-----------
2,829,419
-----------
- -------------------------------------------------------------------------------
Banking, Finance and Insurance: 27.66%
- -------------------------------------------------------------------------------
American General 18,100 923,100
Aon 32,350 1,744,878
Banc One 31,200 1,626,300
Bank of Boston 21,200 1,718,525
Bankers Trust New York 6,000 708,000
Chase Manhattan 10,500 1,211,438
CIGNA 8,700 1,350,675
CoreStates Financial 19,500 1,418,625
Crestar Financial 29,600 1,400,450
Fleet Financial Group 20,700 1,331,269
Hartford Financial
Services Group 12,600 1,020,600
Mellon Bank 30,900 1,593,281
Mercantile Bancorp 25,650 1,245,628
PNC Financial Group 30,000 1,425,000
SAFECO 22,700 1,080,378
St. Paul 7,700 615,519
Summit Bancorp 46,650 1,991,372
Transamerica 300 30,281
-----------
22,435,319
-----------
- -------------------------------------------------------------------------------
Cable, Media and Publishing: 1.89%
- -------------------------------------------------------------------------------
McGraw-Hill 23,400 1,529,775
-----------
1,529,775
-----------
- --------------------------------------------------------------------------------
Chemicals: 6.74%
- --------------------------------------------------------------------------------
duPont (E.I.) deNemours 23,478 1,335,311
Hercules 14,400 660,600
Hoechst AG ADR 18,800 729,675
Imperial Chemical ADR 31,200 1,868,100
Rhone-Poulenc S.A. ADR 20,700 874,575
-----------
5,468,261
-----------
<PAGE>
Number Market
of Shares Value
- --------------------------------------------------------------------------------
Consumer Products: 1.71%
- --------------------------------------------------------------------------------
Minnesota Mining
& Manufacturing 15,212 $ 1,391,898
-----------
1,391,898
-----------
- --------------------------------------------------------------------------------
Electronics and Electrical Equipment: 3.00%
- --------------------------------------------------------------------------------
Eaton 13,100 1,265,788
Thomas & Betts 23,400 1,164,150
-----------
2,429,938
-----------
- --------------------------------------------------------------------------------
Energy: 10.72%
- --------------------------------------------------------------------------------
Atlantic Richfield 17,900 1,473,394
British Petroleum ADR 14,616 1,282,554
Chevron 14,900 1,235,769
Consolidated Natural Gas 23,100 1,248,844
Mobil 14,700 1,070,344
Texaco 19,700 1,121,669
Williams 24,750 1,260,703
-----------
8,693,277
-----------
- --------------------------------------------------------------------------------
Environmental Services: 2.83%
- --------------------------------------------------------------------------------
Browning-Ferris 48,300 1,569,750
Waste Management 31,000 724,625
-----------
2,294,375
-----------
- --------------------------------------------------------------------------------
Food, Beverage and Tobacco: 3.79%
- --------------------------------------------------------------------------------
CPC International 9,800 970,200
Heinz (H.J.) 27,750 1,288,641
RJR Nabisco Holdings 25,640 812,468
-----------
3,071,309
-----------
- --------------------------------------------------------------------------------
Healthcare and Pharmaceuticals: 12.44%
- --------------------------------------------------------------------------------
American Home Products 28,874 2,140,285
Bausch & Lomb 15,200 596,600
Baxter International 44,100 2,039,625
BOC Group 9,100 300,300
Bristol-Myers Squibb 21,200 1,860,300
Glaxo Wellcome ADR 36,800 1,575,500
Pharmacia & Upjohn 49,700 1,577,975
-----------
10,090,585
-----------
- --------------------------------------------------------------------------------
Leisure, Lodging and Entertainment: 1.53%
- --------------------------------------------------------------------------------
Eastman Kodak 20,800 1,245,400
-----------
1,245,400
-----------
26 DELAWARE POOLED TRUST o 1997 ANNUAL REPORT
<PAGE>
Number Market
of Shares Value
- -------------------------------------------------------------------------------
Metals and Mining: 1.33%
- -------------------------------------------------------------------------------
Allegheny Teledyne 40,900 $ 1,076,181
-----------
1,076,181
-----------
- -------------------------------------------------------------------------------
Paper and Forest Products: 3.13%
- -------------------------------------------------------------------------------
Georgia-Pacific 11,700 992,306
Temple-Inland 8,200 470,475
Union Camp 19,800 1,072,913
-----------
2,535,694
-----------
- -------------------------------------------------------------------------------
Retail: 1.53%
- -------------------------------------------------------------------------------
May Department Stores 23,000 1,239,125
-----------
1,239,125
-----------
- -------------------------------------------------------------------------------
Telecommunications: 6.55%
- -------------------------------------------------------------------------------
BCE 59,800 1,670,663
Cable & Wireless ADR 39,000 955,500
Frontier 71,900 1,554,838
SBC Communications 17,800 1,132,525
-----------
5,313,526
-----------
- -------------------------------------------------------------------------------
Transportation and Shipping: 3.02%
- -------------------------------------------------------------------------------
Norfolk Southern 36,900 1,185,413
Union Pacific 20,700 1,267,875
-----------
2,453,288
- -------------------------------------------------------------------------------
Miscellaneous: 3.23%
- -------------------------------------------------------------------------------
Block (H&R) 19,500 721,500
Pitney Bowes 23,900 1,895,569
-----------
2,617,069
-----------
Total Common Stock
(cost $63,460,308) 77,591,264
-----------
<PAGE>
Principal Market
Amount Value
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 3.93%
- -------------------------------------------------------------------------------
With PaineWebber
5.65% 11/3/97 (dated
10/31/97, collateralized
by $1,792,000 U.S.
Treasury Notes 5.125%
due 2/28/98, market
value $1,805,254) $ 1,768,000 $ 1,768,000
With Prudential Securities
5.65% 11/3/97 (dated
10/31/97, collateralized
by $1,432,000 U.S.
Treasury Notes 5.875%
due 2/28/99, market
value $1,450,935) 1,421,000 1,421,000
- -------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $3,189,000) 3,189,000
- -------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 99.60%
(COST $66,649,308) $80,780,264
- -------------------------------------------------------------------------------
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES: 0.40% 321,634
- -------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
4,377,036 SHARES ($0.01 PAR VALUE)
OUTSTANDING; EQUIVALENT
TO $18.53 PER SHARE: 100.00% $81,101,898
- -------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 1997:
- -------------------------------------------------------------------------------
Common stock, $0.01 par value,
550,000,000 shares authorized
to the Fund with 50,000,000
allocated to this Portfolio $53,979,244
Undistributed net investment income 940,629
Accumulated net realized gain on
investments 12,051,069
Net unrealized appreciation of
investments 14,130,956
- -------------------------------------------------------------------------------
Total Net Assets $81,101,898
- -------------------------------------------------------------------------------
ADR = American Depository Receipt
See accompanying notes
1997 ANNUAL REPORT * DELAWARE POOLED TRUST 27
<PAGE>
- --------------------------------------------------------------------------------
Delaware Pooled Trust, Inc.: The Aggressive Growth Portfolio
Statement of Net Assets
October 31, 1997
Number Market
of Shares Value
- --------------------------------------------------------------------------------
COMMON STOCK: 89.88%
- --------------------------------------------------------------------------------
Automobiles and Automotive Parts: 0.90%
- --------------------------------------------------------------------------------
Hertz Class A 2,700 $ 93,319
----------
93,319
----------
- --------------------------------------------------------------------------------
Banking, Finance and Insurance: 9.25%
- --------------------------------------------------------------------------------
Bank United Class A 2,800 118,300
Blanch (E.W.) Holdings 4,300 144,050
CMAC Investment 3,900 213,281
*FIRSTPLUS Financial Group 2,800 153,825
*Ocwen Financial 2,700 148,331
PartnerRe Limited 1,800 73,800
*Security Capital Group Class B 3,200 102,400
----------
953,987
----------
- --------------------------------------------------------------------------------
Buildings and Materials: 1.01%
- --------------------------------------------------------------------------------
*J. Ray McDermott S.A. 2,100 86,888
*Transcoastal Marine Services 700 17,194
----------
104,082
----------
- --------------------------------------------------------------------------------
Cable, Media and Publishing: 1.52%
- --------------------------------------------------------------------------------
*Snyder Communications 2,400 70,800
*World Color Press 3,400 86,063
----------
156,863
----------
- --------------------------------------------------------------------------------
Computers and Technology: 16.91%
- --------------------------------------------------------------------------------
*Acxiom 5,400 88,763
*Affiliated Computer
Services Class A 3,500 87,938
*BA Merchant Services Class A 700 10,456
*Bay Networks 3,600 113,850
*BISYS Group 6,300 195,694
*BMC Software 3,400 204,850
*Compuware 4,300 283,800
Dallas Semiconductor 1,200 58,650
*DST Systems 1,000 35,313
*i2 Technologies 2,600 117,569
*J.D. Edwards 2,200 74,663
Linear Technology 1,200 75,375
*Network Solutions Class A 200 3,819
*PLATINUM technology 7,600 183,587
*Sterling Commerce 4,174 138,525
*StorMedia Class A 4,100 19,219
*Teradyne 1,400 52,413
----------
1,744,484
----------
<PAGE>
Number Market
of Shares Value
- --------------------------------------------------------------------------------
Electronics and Electrical Equipment: 0.47%
- --------------------------------------------------------------------------------
*Altera 700 $ 31,041
*MMC Networks 600 13,200
*Pericom Semiconductor 500 4,563
----------
48,804
----------
- --------------------------------------------------------------------------------
Energy: 2.51%
- --------------------------------------------------------------------------------
*Global Industries 6,800 136,425
*Marine Drilling 2,400 71,025
*Weatherford Enterra 1,000 51,063
----------
258,513
----------
- --------------------------------------------------------------------------------
Environmental Services: 7.01%
- --------------------------------------------------------------------------------
*Philip Services 24,000 420,000
*Republic Industries 3,600 106,200
*USA Waste Services 5,322 196,914
----------
723,114
----------
- --------------------------------------------------------------------------------
Food, Beverage and Tobacco: 1.95%
- --------------------------------------------------------------------------------
*Foodmaker 6,100 100,269
*General Cigar Class A 3,500 101,281
----------
201,550
----------
- --------------------------------------------------------------------------------
Healthcare and Pharmaceuticals: 12.06%
- --------------------------------------------------------------------------------
*Dura Pharmaceuticals 3,000 145,313
*Genesis Health Ventures 2,000 49,000
*Health Management
Associates Class A 10,856 264,603
*HealthSouth 4,700 120,144
*Interim Services 2,800 73,325
*MedPartners 10,500 267,094
*Orthodontic Centers of America 3,700 64,056
*Phycor 6,600 152,006
*Quorum Health Group 4,500 108,984
----------
1,244,525
----------
- --------------------------------------------------------------------------------
Leisure, Lodging and Entertainment: 7.82%
- --------------------------------------------------------------------------------
*HFS 2,700 190,350
*Interstate Hotels 2,100 64,575
*Mirage Resorts 3,700 92,500
*Outback Steakhouse 7,500 203,203
*Papa John's International 2,800 82,512
*Prime Hospitality 4,200 85,575
Royal Caribbean Cruises 1,900 88,231
----------
806,946
----------
28 DELAWARE POOLED TRUST o 1997 ANNUAL REPORT
<PAGE>
Number Market
of Shares Value
- ---------------------------------------------------------------------------
Retail: 13.79%
- ---------------------------------------------------------------------------
*Bed Bath & Beyond 6,900 $ 219,938
*CompUSA 9,200 301,300
Dollar General 875 28,930
Fastenal 2,300 112,988
*General Nutrition 6,100 191,388
*Kohl's 2,200 147,675
St. John Knits 2,500 100,469
*Staples 7,113 186,259
*Viking Office Products 5,600 133,875
----------
1,422,822
----------
- ---------------------------------------------------------------------------
Telecommunications: 4.33%
- ---------------------------------------------------------------------------
*CIENA 3,000 165,375
*Clear Channel Communications 1,900 125,400
*Tellabs 2,900 156,509
----------
447,284
----------
- ---------------------------------------------------------------------------
Textiles, Apparel and Furniture: 2.23%
- ---------------------------------------------------------------------------
*Jones Apparel Group 1,800 91,575
*Tommy Hilfiger 3,500 138,469
----------
230,044
----------
- ---------------------------------------------------------------------------
Transportation and Shipping: 0.95%
- ---------------------------------------------------------------------------
*Galileo International 3,900 97,988
----------
97,988
----------
- ---------------------------------------------------------------------------
Utilities: 2.80%
- ---------------------------------------------------------------------------
*AES 7,296 289,104
----------
289,104
----------
- ---------------------------------------------------------------------------
Miscellaneous: 4.37%
- ---------------------------------------------------------------------------
*Cornell Corrections 1,500 27,000
*Corrections Corporation
of America 800 24,400
*CUC International 8,000 236,000
*Personnel Group of America 1,800 62,438
*Sylvan Learning Systems 2,400 100,650
----------
450,488
----------
- ---------------------------------------------------------------------------
Total Common Stock
(cost $7,550,323) 9,273,917
- ---------------------------------------------------------------------------
<PAGE>
Principal Market
Amount Value
- ---------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 10.43%
- ---------------------------------------------------------------------------
With PaineWebber
5.65% 11/3/97 (dated
10/31/97, collateralized
by $605,000 U.S.
Treasury Notes 5.125%
due 2/28/98, market
value $609,110) $597,000 $ 597,000
With Prudential Securities
5.65% 11/3/97 (dated
10/31/97, collateralized
by $483,000 U.S.
Treasury Notes 5.875%
due 2/28/99, market
value $489,560) 479,000 479,000
- ---------------------------------------------------------------------------
Total Repurchase Agreements
(cost $1,076,000) 1,076,000
- ---------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 100.31%
(COST $8,626,323) $10,349,917
- ---------------------------------------------------------------------------
LIABILITIES NET OF RECEIVABLES
AND OTHER ASSETS: (0.31%) (32,470)
- ---------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
754,166 SHARES ($0.01 PAR VALUE)
OUTSTANDING; EQUIVALENT
TO $13.68 PER SHARE: 100.00% $10,317,447
- ---------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 1997:
Common stock $0.01 par value,
550,000,000 shares authorized
to the Fund with 50,000,000
shares allocated to this Portfolio $ 3,979,614
Accumulated net realized gain on
investments 4,614,239
Net unrealized appreciation of
investments 1,723,594
- ---------------------------------------------------------------------------
Total Net Assets $10,317,447
- ---------------------------------------------------------------------------
*Non-income producing security
See accompanying notes
1997 ANNUAL REPORT * DELAWARE POOLED TRUST 29
<PAGE>
- --------------------------------------------------------------------------------
Delaware Pooled Trust, Inc.: The Real Estate Investment Trust Portfolio
Statement of Net Assets
October 31, 1997
Number Market
of Shares Value
- --------------------------------------------------------------------------------
COMMON STOCK: 98.87%
- --------------------------------------------------------------------------------
Healthcare REITs: 1.66%
- --------------------------------------------------------------------------------
Nationwide Health Properties 44,100 $ 995,006
-----------
995,006
-----------
- --------------------------------------------------------------------------------
Hotels/Diversified REITs: 23.80%
- --------------------------------------------------------------------------------
Felcor Suite Hotels 39,300 1,439,363
Glenborough Realty Trust 61,100 1,565,688
Innkeepers USA Trust 100,000 1,668,750
National Golf Properties 44,500 1,443,469
Newhall Land & Farming 56,200 1,327,725
Patriot American Hospitality 72,201 2,382,640
Starwood Lodging Trust 40,000 2,392,500
Vornado Realty Trust 46,600 2,079,525
-----------
14,299,660
-----------
- --------------------------------------------------------------------------------
Mall REITs: 5.20%
- --------------------------------------------------------------------------------
General Growth Properties 42,000 1,449,000
Simon DeBartolo Group 54,100 1,673,719
-----------
3,122,719
-----------
- --------------------------------------------------------------------------------
Manufactured Housing REITs: 4.54%
- --------------------------------------------------------------------------------
Chateau Communities 45,848 1,363,978
Sun Communities 39,100 1,363,613
-----------
2,727,591
-----------
- --------------------------------------------------------------------------------
Multifamily REITs: 13.73%
- --------------------------------------------------------------------------------
Apartment Investment
& Management 55,600 1,970,325
Bay Apartment Communities 31,000 1,212,875
Camden Property Trust 55,400 1,662,000
Equity Residential Properties 33,400 1,686,700
Essex Property Trust 50,100 1,715,925
-----------
8,247,825
-----------
<PAGE>
Number Market
of Shares Value
- --------------------------------------------------------------------------------
Office/Industrial REITs: 35.21%
- --------------------------------------------------------------------------------
Alexandria R. E. Equities 55,000 $ 1,509,063
Brandywine Realty Trust 64,200 1,504,688
Crescent Real Estate Equities 56,700 2,041,200
Duke Realty Investments 61,200 1,377,000
Equity Office Properties Trust 63,700 1,946,831
First Industrial Realty 40,800 1,412,700
Highwoods Properties 43,000 1,483,500
Liberty Property Trust 35,000 980,000
Parkway (Private Placement) 29,500 1,003,000
Prentiss Properties Trust 62,000 1,763,125
Reckson Associates Realty 61,200 1,602,675
SL Green Realty 65,200 1,634,075
Spieker Properties 38,600 1,510,225
Tower Realty Trust 55,100 1,391,275
-----------
21,159,357
-----------
- --------------------------------------------------------------------------------
Retail Strip Center REITs: 11.06%
- --------------------------------------------------------------------------------
Developers Diversified Realty 29,000 1,145,500
Excel Realty Trust 54,700 1,647,838
JDN Realty 41,500 1,416,188
Kimco Realty 40,200 1,286,400
Pan Pacific Retail Properties 53,000 1,152,750
-----------
6,648,676
-----------
- --------------------------------------------------------------------------------
Self-Storage REITs: 3.67%
- --------------------------------------------------------------------------------
Public Storage 50,500 1,388,750
Storage USA 21,600 819,450
-----------
2,208,200
-----------
- --------------------------------------------------------------------------------
Total Common Stock
(cost $45,867,326) 59,409,034
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
WARRANTS: 0.02%
- --------------------------------------------------------------------------------
Security Capital Group 2,780 13,377
- --------------------------------------------------------------------------------
Total Warrants (cost $0) 13,377
- --------------------------------------------------------------------------------
30 DELAWARE POOLED TRUST o ANNUAL REPORT
<PAGE>
Principal Market
Amount Value
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 0.84%
- --------------------------------------------------------------------------------
With Chase Manhattan Bank
5.65% 11/3/97 (dated
10/31/97, collateralized
by $179,000 U.S.
Treasury Notes 5.75%
due 10/31/00, market
value $179,333) $ 175,000 $ 175,000
With PaineWebber
5.65% 11/3/97 (dated
10/31/97, collateralized
by $167,000 U.S.
Treasury Notes 5.125%
due 2/28/98, market
value $168,193) 165,000 165,000
With Prudential Securities
5.65% 11/3/97 (dated
10/31/97, collateralized
by $166,000 U.S.
Treasury Notes 5.875%
due 2/28/99, market
value $168,140) 165,000 165,000
- --------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $505,000) 505,000
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 99.73%
(COST $46,372,326) $59,927,411
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES: 0.27% 161,798
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
3,694,764 SHARES ($0.01 PAR VALUE)
OUTSTANDING; EQUIVALENT TO
$16.26 PER SHARE: 100.00% $60,089,209
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 1997:
- --------------------------------------------------------------------------------
Common Stock $0.01 par value,
550,000,000 shares authorized
to the Fund with 50,000,000
shares allocated to this Portfolio $41,949,021
Undistributed net investment income 1,653,612
Accumulated net realized gain on
investments 2,931,491
Net unrealized appreciation of
investments 13,555,085
- --------------------------------------------------------------------------------
Total Net Assets $60,089,209
- --------------------------------------------------------------------------------
REIT: Real Estate Investment Trust
See accompanying notes
<PAGE>
- --------------------------------------------------------------------------------
Delaware Pooled Trust, Inc.:
The Fixed Income Portfolio
Statement of Net Assets
October 31, 1997
Principal Market
Amount Value
- --------------------------------------------------------------------------------
ASSET-BACKED SECURITIES: 14.90%
- --------------------------------------------------------------------------------
ADVANTA Series 93-1 A2,
5.95%, 5/25/09 $ 63,013 $ 61,501
AFC Home Equity Loan
Trust Series 92-5 A,
7.20%, 2/15/08 54,990 55,617
Case Equipment Loan Trust
Series 95-B A3,
6.15%, 9/15/02 373,660 374,930
CIT Group Securitization
Series 95-2 A2,
6.00%, 5/15/26 500,000 498,584
Countrywide Asset-Backed
Certificates Series 97-1 A4,
6.95%, 5/25/21 350,000 354,977
First Union Residential
Securitization Trust
Series 96-2 A2,
6.46%, 9/25/11 440,000 441,513
IMC Home Equity Loan
Trust Series 95-3 A2,
6.50%, 11/25/10 118,543 118,742
MetLife Capital Equipment
Loan Trust Series 97-A A,
6.85%, 5/20/08 315,000 322,403
NationsCredit Grantor
Trust Series 96-1 A,
5.85%, 9/15/11 192,039 190,081
NationsCredit Grantor
Trust Series 97-2 A1,
6.35%, 4/15/14 600,000 601,500
Neiman Marcus Group
Credit Card Master Trust
Series 95-1 A,
7.60%, 6/15/03 150,000 155,747
Oakwood Mortgage Investors
Series 97-C A3,
6.65%, 11/15/27 525,000 527,707
The Money Store Home
Equity Trust Series 97-A A9,
7.224%, 4/15/27 260,000 268,288
The Money Store Home
Equity Trust Series 97-C AH5,
6.59%, 2/15/15 425,000 426,461
UCFC Home Equity
Loan Series 96-B1 A3,
7.30%, 4/15/14 125,000 126,838
- --------------------------------------------------------------------------------
Total Asset-Backed Securities
(cost $4,482,475) 4,524,889
- --------------------------------------------------------------------------------
1997 ANNUAL REPORT o DELAWARE POOLED TRUST 31
<PAGE>
Principal Market
Amount Value
- --------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS: 28.52%
- --------------------------------------------------------------------------------
Asset Securitization
Corporation Series 96-D2
A1, 6.92%, 2/14/29 $340,084 $350,818
Asset Securitization
Corporation Series 96-D3
A1B, 7.21%, 10/13/26 130,000 135,748
Asset Securitization
Corporation Series 97-D4
A1A, 7.35%, 4/14/29 201,182 207,941
Asset Securitization
Corporation Series 97-D5
A3, 6.86%, 2/14/41 385,000 388,790
Asset Securitization
Corporation Series 97-MD7
A3, 7.84%, 1/13/30 400,000 427,313
Fannie Mae Series 93-53 H,
5.75%, 1/25/22 365,000 351,881
Federal Home Loan
Mortgage Corporation
Series 1542 G,
6.15%, 1/15/17 385,000 385,116
Federal Home Loan
Mortgage Corporation
Series 29 E,
6.50%, 6/25/20 650,000 655,486
Federal Home Loan
Mortgage Corporation-
GNMA Series 21 H,
5.85%, 1/25/19 525,000 518,882
First Union-Lehman
Brothers Commercial
Mortgage Series 97-C1 A1,
7.15%, 2/18/04 316,532 326,510
GE Capital Mortgage
Services Series 94-2 A3,
5.40%, 1/25/09 409,455 407,444
Lehman Large Loan
Series 97-LLI A1,
6.79%, 6/12/04 335,000 342,852
Merrill Lynch Mortgage
Investors Series 97-C1 A1,
6.95%, 6/18/29 98,799 101,254
Morgan Stanley Capital
Trust Series 97-C1 A1A,
6.85%, 2/15/20 359,472 364,864
Mortgage Capital Funding
Series 96-MC2 A1,
6.758%, 2/20/04 154,950 156,936
Mortgage Capital Funding
Series 96-MC2 C,
7.224%, 9/20/06 155,000 159,505
<PAGE>
Principal Market
Amount Value
- --------------------------------------------------------------------------------
Nomura Asset Securities
Series 95-MD3 A1A,
8.17%, 3/4/20 $177,566 $186,555
Norwest Asset Securities
Series 97-1 A8,
7.25%, 2/25/12 194,299 200,291
Prudential Home Mortgage
Series 93-61 A3,
6.50%, 12/25/08 355,000 357,748
Residential Accredit Loans
Series 96-QS2 A6,
7.45%, 4/25/23 135,000 137,679
Residential Accredit Loans
Series 96-QS3 AI3,
7.29%, 6/25/26 70,000 70,875
Residential Accredit Loans
Series 97-QS1 A5,
6.75%, 2/25/27 500,000 502,188
Residential Accredit Loans
Series 97-QS1 A8,
6.75%, 2/25/27 400,000 398,031
Residential Accredit Loans
Series 97-QS3 A3,
7.50%, 4/25/27 135,000 137,341
Residential Accredit Loans
Series 97-QS4 A3,
7.25%, 5/25/27 450,000 455,906
Residential Accredit Loans
Series 97-QS6 A5,
7.50%, 6/25/12 168,005 175,618
Residential Funding Mortgage
Securities Series 96-S9 A10,
7.25%, 4/25/26 735,840 757,443
- --------------------------------------------------------------------------------
Total Collateralized Mortgage Obligations
(cost $8,502,591) 8,661,015
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CORPORATE BONDS: 17.87%
- --------------------------------------------------------------------------------
AT&T Capital,
6.83%, 1/30/01 200,000 203,500
Banco Santiago S.A.,
7.00%, 7/18/07 210,000 202,650
Barrick Gold,
7.50%, 5/1/07 365,000 385,988
Chrysler Financial,
6.35%, 3/15/99 150,000 151,125
Continental,
7.25%, 3/1/03 400,000 413,000
Continental Airlines,
6.80%, 1/2/09 475,000 478,506
Credit Foncier de France,
8.00%, 1/14/02 335,000 352,588
Ford Motor Credit,
7.00%, 9/25/01 300,000 309,750
32 DELAWARE POOLED TRUST o 1997 ANNUAL REPORT
<PAGE>
Principal Market
Amount Value
- --------------------------------------------------------------------------------
Greyhound Financial-
Medium Term Note,
8.79%, 11/15/01 $ 100,000 $ 109,000
International Lease Finance,
6.15%, 8/1/00 420,000 420,525
Kohl's,
6.70%, 2/1/06 300,000 300,000
Lehman Brothers Holdings,
6.89%, 10/10/00 150,000 152,438
Norfolk Southern,
6.70%, 5/1/00 400,000 405,500
Norwest,
6.125%, 10/15/00 150,000 150,188
Petrozuata Finance,
8.22%, 4/1/17 300,000 313,875
Summit Bank,
6.75%, 6/15/03 80,000 81,100
Transwestern Pipeline,
7.55%, 1/15/00 400,000 412,000
U.S. Bancorp,
8.125%, 5/15/02 125,000 133,906
U.S. West Capital Funding,
6.20%, 11/30/00 450,000 450,000
- --------------------------------------------------------------------------------
Total Corporate Bonds
(cost $5,317,037) 5,425,639
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES: 13.20%
- --------------------------------------------------------------------------------
Federal Home Loan
Mortgage Corporation-Gold,
6.00%, 4/1/11 267,854 263,836
Federal National
Mortgage Association,
7.50%, 2/1/27 833,265 852,013
Government National
Mortgage Association,
6.50%, 12/15/23 778,639 776,206
Government National
Mortgage Association,
6.50%, 1/15/24 714,460 712,004
Government National
Mortgage Association,
6.50%, 11/1/27 900,000 888,469
Government National
Mortgage Association,
9.00%, 2/15/17 302,071 327,464
Government National
Mortgage Association,
9.50%, 9/15/19 172,763 188,420
- --------------------------------------------------------------------------------
Total Mortgage Backed Securities
(cost $3,968,978) 4,008,412
- --------------------------------------------------------------------------------
<PAGE>
Principal Market
Amount Value
- --------------------------------------------------------------------------------
MUNICIPAL BONDS: 2.12%
- --------------------------------------------------------------------------------
New York State Dorm
Authority Revenue (Taxable
Pension Obligations),
6.23%, 10/1/98 $ 350,000 $ 350,000
Philadelphia Authority
For Industrial Development
Series 97 A,
6.488%, 6/15/04 291,546 293,619
- --------------------------------------------------------------------------------
Total Municipal Bonds
(cost $641,546) 643,619
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS: 22.81%
- --------------------------------------------------------------------------------
U.S. Treasury Notes,
5.875%, 2/15/00 2,925,000 2,936,115
U.S. Treasury Notes,
6.375%, 1/15/00 3,270,000 3,320,055
U.S. Treasury Notes,
6.375%, 8/15/02 655,000 671,283
- --------------------------------------------------------------------------------
Total U.S. Treasury Obligations
(cost $6,872,407) 6,927,453
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 99.42%
(cost $29,785,034) $30,191,027
- --------------------------------------------------------------------------------
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES: 0.58% 175,169
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSET APPLICABLE TO
3,009,582 SHARES ($0.01 PAR VALUE)
OUTSTANDING; EQUIVALENT
TO $10.09 PER SHARE: 100.00% $30,366,196
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 1997:
- --------------------------------------------------------------------------------
Common stock, $0.01 par value,
550,000,000 shares authorized
to the Fund with 50,000,000
shares allocated to this Portfolio $29,941,017
Accumulated net realized gain on
investments 19,186
Net unrealized appreciation of
investments 405,993
- --------------------------------------------------------------------------------
Total Net Assets $30,366,196
- --------------------------------------------------------------------------------
See accompanying notes
1997 ANNUAL REPORT o DELAWARE POOLED TRUST 33
<PAGE>
- --------------------------------------------------------------------------------
Delaware Pooled Trust, Inc.: The High-Yield Bond Portfolio
Statement of Net Assets
October 31, 1997
Principal Market
Amount Value
- --------------------------------------------------------------------------------
CORPORATE BONDS: 96.80%
- --------------------------------------------------------------------------------
Aerospace and Defense: 2.26%
- --------------------------------------------------------------------------------
Roller Bearing,
9.625%, 6/15/07 $ 250,000 $ 256,250
----------
256,250
----------
- --------------------------------------------------------------------------------
Buildings and Materials: 12.65%
- --------------------------------------------------------------------------------
American Builders
and Contractors,
10.625%, 5/15/07 225,000 234,000
Atrium,
10.50%, 11/15/06 400,000 415,000
Clark Materials Handling,
10.75%, 11/15/06 150,000 157,500
Collins & Aikman,
10.00%, 1/15/07 400,000 420,000
Reliant Building,
10.875%, 5/1/04 200,000 208,500
----------
1,435,000
----------
- --------------------------------------------------------------------------------
Chemicals: 6.50%
- --------------------------------------------------------------------------------
Harris Chemical,
10.75%, 10/15/03 200,000 206,500
PCI Chemical,
9.25%, 10/15/07 275,000 275,000
Precise Technology,
11.125%, 6/15/07 250,000 255,625
----------
737,125
----------
- --------------------------------------------------------------------------------
Computers and Technology: 1.03%
- --------------------------------------------------------------------------------
DecisionOne Holdings,
0.00%/11.50%, 8/1/08 175,000 116,813
----------
116,813
----------
- --------------------------------------------------------------------------------
Consumer Products: 11.97%
- --------------------------------------------------------------------------------
Doskocil Manufacturing,
10.125%, 9/15/07 275,000 286,688
Fedders North America,
9.375%, 8/15/07 275,000 281,875
Pen-Tab Industries,
10.875%, 2/1/07 400,000 399,000
Riddell Sports,
10.50%, 7/15/07 250,000 259,375
William Carter,
10.375%, 12/1/06 125,000 130,938
----------
1,357,876
----------
<PAGE>
Principal Market
Amount Value
- --------------------------------------------------------------------------------
Electronics and Electrical Equipment: 7.33%
- --------------------------------------------------------------------------------
Communications Instruments,
10.00%, 9/15/04 $275,000 $ 280,500
Fairchild Semiconductor,
10.125%, 3/15/07 250,000 263,750
Insilco,
10.25%, 8/15/07 275,000 287,375
----------
831,625
----------
- --------------------------------------------------------------------------------
Energy: 11.43%
- --------------------------------------------------------------------------------
Panaco,
10.625%, 10/1/04 275,000 277,750
Rutherford-Moran Oil,
10.75%, 10/1/04 275,000 276,375
Southwest Royalties,
10.50%, 10/15/04 275,000 272,938
TransAmerican Energy,
11.50%, 6/15/02 255,000 262,013
United Refining,
10.75%, 6/15/07 200,000 207,500
----------
1,296,576
----------
- --------------------------------------------------------------------------------
Environmental Services: 3.21%
- --------------------------------------------------------------------------------
Hydrochem Industrial Services,
10.375%, 8/1/07 350,000 364,000
----------
364,000
----------
- --------------------------------------------------------------------------------
Food, Beverage and Tobacco: 4.24%
- --------------------------------------------------------------------------------
Community Distributors,
10.25%, 10/15/04 275,000 281,188
DiGiorgio,
10.00%, 6/15/07 200,000 200,000
----------
481,188
----------
- --------------------------------------------------------------------------------
Leisure, Lodging and Entertainment: 8.26%
- --------------------------------------------------------------------------------
AFC Enterprises,
10.25%, 5/15/07 75,000 78,000
Hollywood Theaters,
10.625%, 8/1/07 175,000 185,063
Town Sports International,
9.75%, 10/15/04 275,000 277,750
Trump-Atlantic City,
11.25%, 5/1/06 400,000 397,000
----------
937,813
----------
- --------------------------------------------------------------------------------
Metals and Mining: 2.06%
- --------------------------------------------------------------------------------
Keystone Consolidated Industries,
9.625%, 8/1/07 225,000 233,438
----------
233,438
----------
34 DELAWARE POOLED TRUST o 1997 ANNUAL REPORT
<PAGE>
Principal Market
Amount Value
- --------------------------------------------------------------------------------
Packaging and Containers: 6.18%
- --------------------------------------------------------------------------------
Huntsman Packaging,
9.125%, 10/1/07 $275,000 $ 281,188
Portola Packaging,
10.75%, 10/1/05 400,000 420,000
----------
701,188
----------
- --------------------------------------------------------------------------------
Retail: 2.29%
- --------------------------------------------------------------------------------
Leslie's Poolmart,
10.375%, 7/15/04 250,000 260,000
----------
260,000
----------
- --------------------------------------------------------------------------------
Telecommunications: 5.88%
- --------------------------------------------------------------------------------
NEXTEL Communications,
0.00%/10.65%, 9/15/07 300,000 177,000
Nextlink Communications,
9.625%, 10/1/07 275,000 277,750
Telegroup,
10.50%, 11/1/04 275,000 213,125
----------
667,875
----------
- --------------------------------------------------------------------------------
Textiles, Apparel and Furniture: 4.11%
- --------------------------------------------------------------------------------
Dyersburg,
9.75%, 9/1/07 275,000 286,688
J. Crew Group,
0.00%/13.125%, 10/15/08 325,000 180,375
----------
467,063
----------
- --------------------------------------------------------------------------------
Transportation and Shipping: 4.13%
- --------------------------------------------------------------------------------
Chemical Leaman,
10.375%, 6/15/05 450,000 469,125
----------
469,125
----------
- --------------------------------------------------------------------------------
Miscellaneous: 3.27%
- --------------------------------------------------------------------------------
Burke Industries,
10.00%, 8/15/07 275,000 285,313
Dyncorp,
9.50%, 3/1/07 85,000 86,488
----------
371,801
----------
- --------------------------------------------------------------------------------
Total Corporate Bonds
(cost $10,736,934) 10,984,756
- --------------------------------------------------------------------------------
Number
of Shares
- --------------------------------------------------------------------------------
PREFERRED STOCK: 0.04%
- --------------------------------------------------------------------------------
Cable, Media and Publishing: 0.04%
- --------------------------------------------------------------------------------
American Radio Systems 36 4,301
- --------------------------------------------------------------------------------
Total Preferred Stock
(cost $3,419) 4,301
- --------------------------------------------------------------------------------
<PAGE>
Principal Market
Amount Value
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 3.64%
- --------------------------------------------------------------------------------
With Chase Manhattan Bank
5.65% 11/3/97 (dated
10/31/97, collateralized
by $146,000 U.S.
Treasury Notes 5.75%
due 10/31/00, market
value $146,663) $143,000 $ 143,000
With PaineWebber
5.65% 11/3/97 (dated
10/31/97, collateralized
by $137,000 U.S.
Treasury Notes 5.125%
due 2/28/98, market
value $137,551) 135,000 135,000
With Prudential Securities
5.65% 11/3/97 (dated
10/31/97, collateralized
by $136,000 U.S.
Treasury Notes 5.875%
due 2/28/99, market
value $137,509) 135,000 135,000
- --------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $413,000) 413,000
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 100.48%
(COST $11,153,353) $11,402,057
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
LIABILITIES NET OF RECEIVABLES
AND OTHER ASSETS: (0.48%) (54,471)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
1,014,785 SHARES ($0.01 PAR VALUE)
OUTSTANDING; EQUIVALENT TO
$11.18 PER SHARE: 100.00% $11,347,586
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 1997:
- --------------------------------------------------------------------------------
Common stock $0.01 par value,
550,000,000 shares authorized
to the Fund with 50,000,000
shares allocated to this Portfolio $ 10,579,912
Undistributed net investment income 225,790
Accumulated net realized gain on
investments 293,180
Net unrealized appreciation of
investments 248,704
- --------------------------------------------------------------------------------
Total Net Assets $11,347,586
- --------------------------------------------------------------------------------
See accompanying notes
1997 ANNUAL REPORT o DELAWARE POOLED TRUST 35
<PAGE>
- --------------------------------------------------------------------------------
Delaware Pooled Trust; Inc.: The International Equity Portfolio
Statement of Net Assets
October 31, 1997
Number Market Value
of Shares (U.S.$)
- --------------------------------------------------------------------------------
COMMON STOCK: 92.80%
- --------------------------------------------------------------------------------
Australia: 10.38%
- --------------------------------------------------------------------------------
Amcor Limited 1,716,000 $ 8,074,916
Brambles Industries 311,000 5,964,672
CSR Limited 3,474,003 12,041,282
Foster's Brewing Group 6,521,930 12,352,862
National Australia Bank 989,017 13,494,321
------------
51,928,053
------------
- --------------------------------------------------------------------------------
Belgium: 3.24%
- --------------------------------------------------------------------------------
Electrabel 72,405 16,187,036
------------
16,187,036
------------
- --------------------------------------------------------------------------------
France: 7.97%
- --------------------------------------------------------------------------------
Alcatel Alsthom 77,009 9,260,559
Compagnie de Saint Gobain 66,645 9,534,202
Elf Aquitaine 75,295 9,288,612
Societe Generale 86,411 11,794,583
------------
39,877,956
------------
- --------------------------------------------------------------------------------
Germany: 8.32%
- --------------------------------------------------------------------------------
Bayer 234,000 8,412,873
Continental 288,550 6,877,011
Rheinisch Westfaelisches Elek 251,500 11,061,917
Siemens 245,500 15,232,531
------------
41,584,332
------------
- --------------------------------------------------------------------------------
Hong Kong: 2.61%
- --------------------------------------------------------------------------------
Hong Kong Electric 2,450,000 8,304,011
Wharf Holdings 2,324,000 4,750,220
------------
13,054,231
------------
- --------------------------------------------------------------------------------
Indonesia: 0.64%
- --------------------------------------------------------------------------------
PT Bank Dagang Nasional 13,359,064 1,855,440
PT Semen Gresik 1,355,000 1,317,372
------------
3,172,812
------------
- --------------------------------------------------------------------------------
Japan: 13.89%
- --------------------------------------------------------------------------------
Amano 331,000 3,111,731
Canon Electronics 332,000 8,065,227
Chiyoda Fire and Marine 535,000 1,945,050
Eisai Limited 513,500 8,074,170
Hitachi Limited 1,527,000 11,751,043
Kinki Coca-Cola Bottling 75,000 898,503
Koito Manufacturing 630,000 3,773,711
Matsushita Electric 760,000 12,772,050
Nichido Fire & Marine 757,000 4,893,421
West Japan Railway 4,045 14,167,600
------------
69,452,506
------------
<PAGE>
Number Market Value
of Shares (U.S.$)
- --------------------------------------------------------------------------------
Malaysia: 1.17%
- --------------------------------------------------------------------------------
Sime Darby Berhad 4,100,000 $ 5,866,746
------------
5,866,746
------------
- --------------------------------------------------------------------------------
Netherlands: 6.67%
- --------------------------------------------------------------------------------
Elsevier 772,000 12,084,167
Koninklijke Van Ommeren 242,000 8,631,768
Royal Dutch Petroleum 239,900 12,644,460
------------
33,360,395
------------
- --------------------------------------------------------------------------------
New Zealand: 3.82%
- --------------------------------------------------------------------------------
Carter Holt Harvey Limited 2,868,400 4,992,794
Telecom Corporation
of New Zealand 2,923,000 14,136,905
------------
19,129,699
------------
- --------------------------------------------------------------------------------
Philippines: 0.93%
- --------------------------------------------------------------------------------
Philippine Long Distance
Telephone Company ADR 192,000 4,656,000
------------
4,656,000
------------
- --------------------------------------------------------------------------------
Singapore: 0.58%
- --------------------------------------------------------------------------------
Jardine Matheson
Holdings Limited 452,278 2,894,579
------------
2,894,579
------------
- --------------------------------------------------------------------------------
South Korea: 0.33%
- --------------------------------------------------------------------------------
Cho Hung Bank
Limited GDR 517,910 1,657,312
------------
1,657,312
------------
- --------------------------------------------------------------------------------
Spain: 4.93%
- --------------------------------------------------------------------------------
Acerinox 22,822 3,397,889
Banco Central
Hispanoamericano S.A. 351,654 6,553,605
Iberdrola S.A. 517,000 6,163,616
Telefonica de Espana 314,350 8,550,663
------------
24,665,773
------------
36 DELAWARE POOLED TRUST o 1997 ANNUAL REPORT
<PAGE>
Number Market Value
of Shares (U.S.$)
- --------------------------------------------------------------------------------
United Kingdom: 27.32%
- --------------------------------------------------------------------------------
Bass 1,140,000 $ 15,754,786
BG 961,300 4,198,914
Blue Circle Industries 1,670,000 9,805,239
Boots 1,063,100 15,537,933
British Airways 1,356,000 13,231,507
Cable & Wireless 1,557,240 12,351,771
Centrica 961,300 1,344,619
GKN 575,750 12,972,089
Glaxo Wellcome 618,711 13,245,623
Great Universal Stores 1,349,300 16,036,686
Powergen 1,145,000 12,687,879
Rio Tinto 733,000 9,503,829
------------
136,670,875
------------
- --------------------------------------------------------------------------------
Total Common Stock
(cost $426,230,867) 464,158,305
- --------------------------------------------------------------------------------
WARRANTS: 0.01%
- --------------------------------------------------------------------------------
Indonesia: 0.01%
- --------------------------------------------------------------------------------
PT Bank Dagang Nasional
2/14/00 1,908,437 57,784
- --------------------------------------------------------------------------------
Total Warrants
(cost $0) 57,784
- --------------------------------------------------------------------------------
Principal
Amount
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 7.14%
- --------------------------------------------------------------------------------
With Chase Manhattan Bank
5.65% 11/3/97 (dated
10/31/97, collateralized
by $12,665,000 U.S.
Treasury Notes 5.75%
due 10/31/00, market
value $12,680,419) $12,416,000 12,416,000
With PaineWebber
5.65% 11/3/97 (dated
10/31/97, collateralized
by $11,806,000 U.S.
Treasury Notes 5.125%
due 2/28/98, market
value $11,892,718) 11,646,000 11,646,000
With Prudential Securities
5.65% 11/3/97 (dated
10/31/97, collateralized
by $11,734,000 U.S.
Treasury Notes 5.875%
due 2/28/99, market
value $11,889,024) 11,646,000 11,646,000
- --------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $35,708,000) 35,708,000
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 99.95%
(COST $461,938,867) $499,924,089
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES: 0.05% 271,572
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
31,531,503 SHARES ($0.01 PAR VALUE)
OUTSTANDING; EQUIVALENT TO
$15.86 PER SHARE: 100.00% $500,195,661
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 1997:
- --------------------------------------------------------------------------------
Common stock, $0.01 par value,
550,000,000 shares authorized
to the Fund with 50,000,000
shares allocated to this Portfolio $ 444,076,026
Undistributed net investment income* 15,069,873
Accumulated net realized gain on
investments 3,079,098
Net unrealized appreciation on
investments and foreign currencies 37,970,664
- --------------------------------------------------------------------------------
Total Net Assets $500,195,661
- --------------------------------------------------------------------------------
* Undistributed net investment income includes net realized gain on foreign
currencies. Net realized gains on foreign currencies are distributed as net
investment income in accordance with provisions of the Internal Revenue Code.
ADR = American Depository Receipt
GDR = Global Depository Receipt
See accompanying notes
1997 ANNUAL REPORT o DELAWARE POOLED TRUST 37
<PAGE>
- --------------------------------------------------------------------------------
Delaware Pooled Trust, Inc; The Labor Select International Equity Portfolio
Statement of Net Assets
October 31, 1997
Number Market Value
of Shares (U.S.$)
- --------------------------------------------------------------------------------
COMMON STOCK: 87.52%
- --------------------------------------------------------------------------------
Australia: 11.04%
- --------------------------------------------------------------------------------
Amcor Limited 195,000 $ 917,604
Brambles Industries 37,200 713,459
CSR Limited 300,000 1,039,833
Foster's Brewing Group 561,572 1,063,645
National Australia Bank 101,192 1,380,681
National Foods 350,334 503,807
-----------
5,619,029
-----------
- --------------------------------------------------------------------------------
Belgium: 3.25%
- --------------------------------------------------------------------------------
Electrabel S.A 7,400 1,654,362
-----------
1,654,362
-----------
- --------------------------------------------------------------------------------
France: 7.82%
- --------------------------------------------------------------------------------
Alcatel Alsthom 11,726 1,410,086
Elf Aquitaine 12,699 1,566,586
Societe Generale 7,359 1,004,459
-----------
3,981,131
-----------
- --------------------------------------------------------------------------------
Germany: 8.38%
- --------------------------------------------------------------------------------
Bayer 39,150 1,407,538
Continental 28,300 674,474
Rheinisch Westfaelisches Elek 23,200 1,020,423
Siemens 18,750 1,163,381
-----------
4,265,816
-----------
- --------------------------------------------------------------------------------
Japan: 11.68%
- --------------------------------------------------------------------------------
Canon Electronics 34,000 825,957
Eisai Limited 60,000 943,428
Kinki Coca-Cola Bottling 23,000 275,541
Koito Manufacturing 88,000 527,121
Matsushita Electric 55,000 924,293
Nichido Fire & Marine 118,000 762,779
West Japan Railway 400 1,400,999
Yokohama Reito 34,000 285,691
-----------
5,945,809
-----------
<PAGE>
Number Market Value
of Shares (U.S.$)
- --------------------------------------------------------------------------------
Netherlands: 7.18%
- --------------------------------------------------------------------------------
Elsevier 85,900 $ 1,344,598
Koninklijke Van Ommeren 17,000 606,364
Royal Dutch Petroleum 29,360 1,547,484
Unilever 2,880 152,536
-----------
3,650,982
-----------
- --------------------------------------------------------------------------------
New Zealand: 3.33%
- --------------------------------------------------------------------------------
Carter Holt Harvey Limited 198,000 344,643
Telecom Corporation
of New Zealand 279,000 1,349,366
-----------
1,694,009
-----------
- --------------------------------------------------------------------------------
Spain: 6.11%
- --------------------------------------------------------------------------------
Acerinox S.A 4,135 615,646
Banco Central
Hispanoamericano S.A 69,180 1,289,274
Iberdrola S.A 101,000 1,204,111
-----------
3,109,031
-----------
- --------------------------------------------------------------------------------
United Kingdom: 28.73%
- --------------------------------------------------------------------------------
Associated British Food 149,000 1,185,587
Bass 122,500 1,692,948
BG 199,250 870,315
Blue Circle Industries 145,150 852,234
Boots 136,100 1,989,194
British Airways 110,800 1,081,159
Centrica 74,250 103,857
GKN 91,000 2,050,300
Glaxo Wellcome 66,260 1,418,522
Great Universal Stores 72,000 855,734
Powergen 88,250 977,909
Rio Tinto 45,950 595,772
Taylor Woodrow 306,750 948,057
-----------
14,621,588
-----------
- --------------------------------------------------------------------------------
Total Common Stock
(cost $39,876,479) 44,541,757
- --------------------------------------------------------------------------------
38 DELAWARE POOLED TRUST o 1997 ANNUAL REPORT
<PAGE>
Principal Market Value
Amount (U.S.$)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 9.83%
- --------------------------------------------------------------------------------
With Chase Manhattan Bank
5.65% 11/3/97 (dated
10/31/97, collateralized
by $1,775,000 U.S.
Treasury Notes 5.75%
due 10/31/00, market
value $1,777,702) $1,740,000 $ 1,740,000
With PaineWebber
5.65% 11/3/97 (dated
10/31/97, collateralized
by $1,655,000 U.S.
Treasury Notes 5.125%
due 2/28/98, market
value $1,667,272) 1,633,000 1,633,000
With Prudential Securities
5.65% 11/3/97 (dated
10/31/97, collateralized
by $1,645,000 U.S.
Treasury Notes 5.875%
due 2/28/99, market
value $1,666,754) 1,633,000 1,633,000
- --------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $5,006,000) 5,006,000
- --------------------------------------------------------------------------------
<PAGE>
TOTAL MARKET VALUE OF SECURITIES: 97.35%
(COST $44,882,479) $49,547,757
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES: 2.65% 1,347,948
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
3,918,785 SHARES ($0.01 PAR VALUE)
OUTSTANDING; EQUIVALENT
TO $12.99 PER SHARE: 100.00% $50,895,705
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 1997:
- --------------------------------------------------------------------------------
Common stock $0.01 par value,
550,000,000 shares authorized
to the Fund with 50,000,000
shares allocated to this Portfolio $ 45,210,077
Undistributed net investment income* 1,302,847
Accumulated net realized loss on
investments (246,301)
Net unrealized appreciation of
investments and foreign currencies 4,629,082
- --------------------------------------------------------------------------------
Total Net Assets $50,895,705
- --------------------------------------------------------------------------------
* Undistributed net investment income includes net realized gains on foreign
currencies.Net realized gains on foreign currencies are distributed as net
investment income in accordance with provisions of the Internal Revenue Code.
See accompanying notes
1997 ANNUAL REPORT o DELAWARE POOLED TRUST 39
<PAGE>
- --------------------------------------------------------------------------------
Delaware Pooled Trust, Inc: The Emerging Markets Portfolio
Statement of Net Assets
October 31, 1997
Number Market Value
of Shares (U.S.$)
- --------------------------------------------------------------------------------
COMMON STOCK: 92.63%
- --------------------------------------------------------------------------------
Argentina: 4.19%
- --------------------------------------------------------------------------------
Central Puerto S.A. Class B 72,900 $ 160,473
Transportadora de Gas
del sur, S.A. Class B 110,000 209,121
YPF Sociedad Anonima 2,800 88,812
YPF Sociedad Anonima ADR 10,000 320,000
----------
778,406
----------
- --------------------------------------------------------------------------------
Brazil: 10.40%
- --------------------------------------------------------------------------------
Aracruz Celulose S.A. ADR 20,400 306,000
Centrais Electricas de Santa
Catarina S.A. GDR 620 74,326
Centrais Electricas de Santa
Catrina S.A. 250 27,212
Companhia Energetica de
Minas Gerais S.A. GDR 4,800 186,768
Companhia Paranaense de
Energia Copel S.A. ADR 20,000 238,750
Metalurgica Gerdau 8,600,000 342,409
*Rossi Residential GDR 22,000 159,500
*Telecommunicacoes Brasileiras
S.A. ADR 3,800 385,700
Usinas Siderurgicas de Minas
Gerais S.A. ADR 29,000 209,960
----------
1,930,625
----------
- --------------------------------------------------------------------------------
Chile: 4.86%
- --------------------------------------------------------------------------------
Administradora de Fondos de
Pensiones Provida S.A. ADR 14,560 243,880
Banco BHIF ADR 9,410 162,911
Cia del Telecomunicaciones de
Chile S.A. ADR 8,300 230,325
Empresa Nacional Electricidad
S.A. ADR 13,200 265,650
----------
902,766
----------
- --------------------------------------------------------------------------------
Egypt: 0.98%
- --------------------------------------------------------------------------------
Paints and Chemical GDR 18,170 181,700
----------
181,700
----------
<PAGE>
Number Market Value
of Shares (U.S.$)
- --------------------------------------------------------------------------------
Greece: 2.96%
- --------------------------------------------------------------------------------
Attica Enterprises S.A. 23,000 $ 242,634
Hellenic Bottling Company S.A. 7,450 307,535
----------
550,169
----------
- --------------------------------------------------------------------------------
Hong Kong: 6.60%
- --------------------------------------------------------------------------------
*First Tractor 450,000 349,288
Guangdong Kelon Electric
Holding 282,000 357,516
Guangshen Railway 766,000 237,827
Northeast Electrical
Transmission & Transformation
Machinery Manufacturing
Limited 28,000 4,962
*Shenzhen Expressway 1,286,000 276,166
----------
1,225,759
----------
- --------------------------------------------------------------------------------
Hungary: 2.21%
- --------------------------------------------------------------------------------
Mol Magyar Olaj-es GDR 4,200 90,621
Mol Magyar Olaj-es
Gazipari Rt GDR 4,250 92,225
Richter Gedeon Rt GDR 2,450 227,238
----------
410,084
----------
- --------------------------------------------------------------------------------
India: 5.99%
- --------------------------------------------------------------------------------
Gujarat Ambuja Cement GDR 13,100 110,368
India Fund, (The) 46,600 384,450
Larsen & Toubro GDR 14,600 154,395
Tata Engineering &
Locomotive Limited GDR 44,550 463,320
----------
1,112,533
----------
- --------------------------------------------------------------------------------
Indonesia: 3.21%
- --------------------------------------------------------------------------------
PT Bank Dagang National 570,000 79,167
PT Semen Gresik 122,000 118,612
PT United Tractors 69,000 47,917
Videsh Sanchar Nigam Limited 25,350 349,830
----------
595,526
----------
- --------------------------------------------------------------------------------
Israel: 3.25%
- --------------------------------------------------------------------------------
Bank Hapoalim 109,600 259,471
Israel Chemicals Limited 274,400 344,238
----------
603,709
----------
- --------------------------------------------------------------------------------
Luxemburg: 0.33%
- --------------------------------------------------------------------------------
Quilmes Industrial S.A. ADR 4,980 61,628
----------
61,628
----------
40 DELAWARE POOLED TRUST o 1997 ANNUAL REPORT
<PAGE>
Number Market Value
of Shares (U.S.$)
- --------------------------------------------------------------------------------
Malaysia: 7.39%
- --------------------------------------------------------------------------------
Leader Universal Holdings 154,000 $ 93,653
Petronas Dagangan Berhad 283,000 393,138
Public Finance Berhad 95,000 46,445
Resorts World Berhad 206,000 365,390
Rothmans of Pall Mall Berhad 53,000 422,641
Sime Darby Berhad 36,000 51,513
----------
1,372,780
----------
- --------------------------------------------------------------------------------
Mexico: 8.90%
- --------------------------------------------------------------------------------
ALFA, S.A. de C.V. Class A 50,300 367,393
Cemex S.A. de C.V. Class B 74,400 323,401
Grupo Minsa ADR 5,900 38,350
Grupo Minsa S.A. Class C 163,750 116,686
Telefonos de Mexico S.A. 8,800 380,600
Vitro S.A. ADR 35,700 426,169
----------
1,652,599
----------
- --------------------------------------------------------------------------------
Peru: 5.21%
- --------------------------------------------------------------------------------
Banco de Credito del Peru 103,798 126,163
Cementos Lima S.A. 17,800 370,424
Creditcorp Limited 10,600 190,138
Telefonica del Peru S.A. ADR 14,170 279,858
----------
966,583
----------
- --------------------------------------------------------------------------------
Philippines: 2.72%
- --------------------------------------------------------------------------------
Philippine Long Distance
Telephone Company ADR 20,800 504,400
----------
504,400
----------
- --------------------------------------------------------------------------------
Poland: 2.03%
- --------------------------------------------------------------------------------
Elektrim Spolka Akcyjna 39,960 376,094
----------
376,094
----------
- --------------------------------------------------------------------------------
Russia: 3.56%
- --------------------------------------------------------------------------------
Gazprom ADR 8,200 177,284
*Gazprom ADR Reg. S 5,300 117,263
Lukoil Holding ADR 1,820 154,809
Mosenergo ADR Reg. S 3,400 151,708
Mosenergo ADR 1,350 60,237
----------
661,301
----------
- --------------------------------------------------------------------------------
Slovenia: 0.47%
- --------------------------------------------------------------------------------
Blagovno Trgovinski
Center GDR 3,460 29,410
*SKB Banka GDR 3,600 58,230
----------
87,640
----------
<PAGE>
Number Market Value
of Shares (U.S.$)
- --------------------------------------------------------------------------------
South Africa: 5.30%
- --------------------------------------------------------------------------------
Amalgamated Banks of
South Africa 30,400 $ 179,899
Anglo American Corporation
of South Africa Limited 4,750 205,148
Sappi Limited 37,600 238,122
Sasol Limited 30,000 361,294
----------
984,463
----------
- --------------------------------------------------------------------------------
South Korea: 1.68%
- --------------------------------------------------------------------------------
Cho Hung Bank Limited GDR 18,700 59,840
Korea Electric Power ADR 11,600 87,348
Pohang Iron & Steel
Limited ADR 10,000 162,500
----------
309,688
----------
- --------------------------------------------------------------------------------
Taiwan: 2.25%
- --------------------------------------------------------------------------------
*Asia Cement GDR 20,000 222,500
*Yageo GDR 18,900 194,954
----------
417,454
----------
- --------------------------------------------------------------------------------
Thailand: 2.49%
- --------------------------------------------------------------------------------
**Hana Microelectronics
Public Co. Limited 41,800 141,062
K.R. Precision 16,700 122,660
Ruang Khao 2 Fund 715,600 102,990
Thai Reinsurance Public
Co. Limited 49,500 95,806
----------
462,518
----------
- --------------------------------------------------------------------------------
Turkey: 3.55%
- --------------------------------------------------------------------------------
Haci Omer Sabanci Holdings 27,953 374,011
Netas-Northern Eleckrik
Telekomunikayson A.S. 950,000 284,240
----------
658,251
----------
- --------------------------------------------------------------------------------
Venezuela: 2.10%
- --------------------------------------------------------------------------------
*Compania Anonima Nacional
Telefonos de Venezuela 8,900 389,375
----------
389,375
----------
- --------------------------------------------------------------------------------
Total Common Stock
(cost $20,852,842) 17,196,051
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
WARRANTS: 0.01%
- --------------------------------------------------------------------------------
Hong Kong: 0.01%
- --------------------------------------------------------------------------------
Guangdong Investment
7/99 9,200 1,428
- --------------------------------------------------------------------------------
Total Warrants
(cost $0) 1,428
- --------------------------------------------------------------------------------
1997 ANNUAL REPORT o DELAWARE POOLED TRUST 41
<PAGE>
Principal Market Value
Amount (U.S.$)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 4.24%
- --------------------------------------------------------------------------------
With Chase Manhattan Bank
5.65% 11/3/97 (dated
10/31/97, collateralized
by $279,000 U.S.
Treasury Notes 5.75%
due 10/31/00, market
value $279,830) $274,000 $ 274,000
With PaineWebber
5.65% 11/3/97 (dated
10/31/97, collateralized
by $261,000 U.S.
Treasury Notes 5.125%
due 2/28/98, market
value $262,447) 257,000 257,000
With Prudential Securities
5.65% 11/3/97 (dated
10/31/97, collateralized
by $259,000 U.S.
Treasury Notes 5.875%
due 2/28/99, market
value $262,366) 257,000 257,000
- --------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $788,000) 788,000
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 96.88%
(COST $21,640,842) $17,985,479
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES: 3.12% 579,121
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
2,018,979 SHARES OUTSTANDING;
EQUIVALENT TO $9.20
PER SHARE: 100.00% $18,564,600
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 1997:
Common stock, $0.01 par value,
550,000,000 shares authorized
to the Fund with 50,000,000
shares allocated to this Portfolio $ 21,911,196
Undistributed net investment income*** 34,275
Accumulated net realized gain on
investments 275,884
Net unrealized depreciation on
investments and foreign currencies (3,656,755)
- --------------------------------------------------------------------------------
Total Net Assets $18,564,600
- --------------------------------------------------------------------------------
* Non-income producing security.
** Includes 1 for 1 Rights exercised at 10 bhats each.
*** Undistributed net investment income includes net realized gain (loss) on
foreign currencies. Net realized gains on foreign currencies, if any, are
distributed as net investment income in accordance with provisions of the
Internal Revenue Code.
ADR = American Depository Receipt
GDR = Global Depository Receipt
See accompanying notes
42 DELAWARE POOLED TRUST o 1997 ANNUAL REPORT
<PAGE>
Delaware Pooled Trust, Inc.: The Global Equity Portfolio
Statement of Net Assets
October 31, 1997
Number Market Value
of Shares (U.S.$)
- ---------------------------------------------------------------------
COMMON STOCK: 96.44%
- ---------------------------------------------------------------------
Australia: 8.31%
- ---------------------------------------------------------------------
Amcor Limited 11,300 $ 53,174
CSR Limited 20,000 69,322
Foster's Brewing Group 32,500 61,557
National Australia Bank 3,900 53,212
--------
237,265
--------
- ---------------------------------------------------------------------
Belgium: 2.74%
- ---------------------------------------------------------------------
Electrabel 350 78,247
--------
78,247
--------
- ---------------------------------------------------------------------
France: 5.49%
- ---------------------------------------------------------------------
Alcatel Alsthom 210 25,253
Compagnie de Saint Gobain 250 35,765
Elf Aquitaine 500 61,681
Societe Generale 250 34,124
--------
156,823
--------
- ---------------------------------------------------------------------
Germany: 6.63%
- ---------------------------------------------------------------------
Bayer 1,700 61,119
Rheinisch Westfaelisches Elek 1,150 50,581
Siemens 1,250 77,559
--------
189,259
--------
- ---------------------------------------------------------------------
Hong Kong: 1.65%
- ---------------------------------------------------------------------
Hong Kong Electric 8,500 28,810
Wharf Holdings 9,000 18,396
--------
47,206
--------
- ---------------------------------------------------------------------
Indonesia: 0.48%
- ---------------------------------------------------------------------
PT Bank
Internasional Indonesia 63,000 13,563
--------
13,563
--------
- ---------------------------------------------------------------------
Japan: 3.89%
- ---------------------------------------------------------------------
Canon Electronics 1,000 24,293
Eisai Limited 1,000 15,724
Koito Manufacturing 6,000 35,940
West Japan Railway 10 35,025
--------
110,982
--------
<PAGE>
Number Market Value
of Shares (U.S.$)
- ---------------------------------------------------------------------
Malaysia: 0.75%
- ---------------------------------------------------------------------
Sime Darby Berhad 15,000 $ 21,464
--------
21,464
--------
- ---------------------------------------------------------------------
Netherlands: 1.50%
- ---------------------------------------------------------------------
Royal Dutch Petroleum 810 42,693
--------
42,693
--------
- ---------------------------------------------------------------------
New Zealand: 3.32%
- ---------------------------------------------------------------------
Carter Holt Harvey 17,500 30,461
Telecom Corporation
of New Zealand 13,300 64,325
--------
94,786
--------
- ---------------------------------------------------------------------
Singapore: 1.08%
- ---------------------------------------------------------------------
Jardine Matheson Holdings
Limited 4,800 30,720
--------
30,720
--------
- ---------------------------------------------------------------------
Spain: 2.01%
- ---------------------------------------------------------------------
Iberdrola S.A. 2,300 27,420
Telefonica de Espana 1,100 29,921
--------
57,341
--------
- ---------------------------------------------------------------------
United Kingdom: 22.41%
- ---------------------------------------------------------------------
Associated British Food 4,300 34,215
Bass 5,200 71,864
Blue Circle Industries 9,800 57,540
Boots 6,100 89,156
Cable & Wireless 8,200 65,041
GKN 4,200 94,629
Glaxo Wellcome 4,000 85,634
Powergen 6,800 75,352
Taylor Woodrow 21,500 66,449
--------
639,880
--------
1997 Annual Report o Delaware Pooled Trust 43
<PAGE>
Number Market Value
of Shares (U.S.$)
- ---------------------------------------------------------------------
United States: 36.18%
- ---------------------------------------------------------------------
American Home Products 700 $ 51,887
AON 600 32,362
Bausch & Lomb 1,000 39,250
Baxter International 700 32,375
Chase Manhattan 600 69,225
CoreStates Financial 500 36,375
Eastman Kodak 700 41,912
Eaton 500 48,312
Fannie Mae 900 43,594
Frontier 1,800 38,925
General Motors 900 57,769
Heinz (H.J.) 700 32,506
May Department Stores 1,000 53,875
McGraw-Hill 800 52,300
Mellon Bank 1,000 51,562
Olin 1,000 45,437
Philip Morris 1,000 39,625
Pitney Bowes 800 63,450
Summit Bancorp 1,500 64,031
Ultramar Diamond Shamrock 1,300 40,138
Union Pacific 900 55,125
USX-Marathon Group 1,200 42,900
---------
1,032,935
---------
- ---------------------------------------------------------------------
Total Common Stock
(cost $2,912,631) 2,753,164
=====================================================================
Principal
Amount
- ---------------------------------------------------------------------
REPURCHASE AGREEMENTS: 3.57%
- ---------------------------------------------------------------------
With Chase Manhattan Bank
5.65% 11/3/97 (dated
10/31/97, collateralized
by $36,000 U.S.
Treasury Notes 5.75%
due 10/31/00, market
value $36,222) $36,000 36,000
With PaineWebber
5.65% 11/3/97 (dated
10/31/97, collateralized
by $33,000 U.S.
Treasury Notes 5.125%
due 2/28/98, market
value $33,972) 33,000 33,000
- ---------------------------------------------------------------------
<PAGE>
Principal Market Value
Amount (U.S.$)
- ---------------------------------------------------------------------
With Prudential Securities
5.65% 11/3/97 (dated
10/31/97, collateralized
by $33,000 U.S.
Treasury Notes 5.875%
due 2/28/99, market
value $33,961) $33,000 $ 33,000
- ---------------------------------------------------------------------
Total Repurchase Agreements
(cost $102,000) 102,000
=====================================================================
- ---------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 100.01%
(COST $3,014,631) $2,855,164
=====================================================================
- ---------------------------------------------------------------------
LIABILITIES NET OF RECEIVABLES
AND OTHER ASSETS: (0.01%) (279)
=====================================================================
- ---------------------------------------------------------------------
NET ASSETS APPLICABLE TO
351,701 SHARES ($0.01 PAR
VALUE) OUTSTANDING;
EQUIVALENT TO $8.12 PER
SHARE: 100.00% $2,854,885
=====================================================================
- ---------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 1997:
- ---------------------------------------------------------------------
Common stock, $0.01 par value,
550,000,000 shares authorized
to the Fund with 50,000,000
shares allocated to this Portfolio $ 3,000,009
Undistributed net investment income* 14,343
Net unrealized depreciation on
investments and foreign currencies (159,467)
- ---------------------------------------------------------------------
Total Net Assets $2,854,885
=====================================================================
* Undistributed net investment income includes net realized gain on foreign
currencies. Net realized gains on foreign currencies are distributed as net
investment income in accordance with provisions of the Internal Revenue Code.
See accompanying notes
44 Delaware Pooled Trust o 1997 Annual Report
<PAGE>
==========================================================================
Delaware Pooled Trust, Inc.: The Global Fixed Income Portfolio
Statement of Net Assets
October 31, 1997
Principal Market Value
Amount* (U.S.$)
- --------------------------------------------------------------------------
BONDS: 93.86%
- --------------------------------------------------------------------------
Canada: 8.06%
- --------------------------------------------------------------------------
Autobahn Schnell,
8.50%, 3/3/03 C$ 2,000,000 $ 1,608,784
European Investment Bank,
8.875%, 3/27/02 2,000,000 1,620,313
Export-Import Bank of Japan,
7.75%, 10/8/02 2,000,000 1,557,345
General Electric Capital
of Canada,
7.125%, 2/12/04 4,000,000 3,066,799
Government of Canada,
10.25%, 3/15/14 16,000,000 16,616,069
KFW International Finance,
6.50%, 12/28/01 2,000,000 1,481,074
Kansai International Airport,
8.00%, 7/2/03 4,000,000 3,169,676
Kingdom of Norway,
8.375%, 1/27/03 5,000,000 3,995,353
Ontario Hydro,
10.00%, 3/19/01 2,000,000 1,638,050
-----------
34,753,463
-----------
- --------------------------------------------------------------------------
Denmark: 1.92%
- --------------------------------------------------------------------------
Kingdom of Denmark,
7.00%, 12/15/04 Dk 10,000,000 1,624,118
Kingdom of Denmark,
8.00%, 11/15/01 40,000,000 6,663,827
-----------
8,287,945
-----------
- --------------------------------------------------------------------------
Germany: 13.12%
- --------------------------------------------------------------------------
Baden Wurt L-Finance NV,
5.25%, 9/26/01 Dem 15,000,000 8,850,391
Baden Wurt L-Finance NV,
6.625%, 8/20/03 18,000,000 11,064,077
Bundesrepublik Deutscheland,
5.75%, 8/22/00 15,000,000 8,949,551
Bundesrepublik Deutschland,
6.50%, 7/15/03 14,000,000 8,631,371
Bundesrepublik Deutschland,
6.50%, 10/14/05 10,000,000 6,165,845
Bundesrepublik Deutscheland,
8.375%, 5/21/01 7,000,000 4,519,049
<PAGE>
Principal Market Value
Amount* (U.S.$)
- --------------------------------------------------------------------------
International Bank
Reconstruction &
Development,
6.125%, 9/27/02 Dem 8,000,000 $ 4,829,226
Republic of Finland,
5.50%, 2/9/01 6,000,000 3,540,157
-----------
56,549,667
-----------
- --------------------------------------------------------------------------
Italy: 5.54%
- --------------------------------------------------------------------------
Italian Government,
6.00%, 2/15/00 Itl 1,000,000,000 597,430
Italian Government,
6.75%, 2/1/07 5,000,000,000 3,068,556
Italian Government,
9.50%, 2/1/01 19,500,000,000 12,767,953
Italian Government,
12.00%, 1/1/03 10,000,000,000 7,454,903
-----------
23,888,842
-----------
- --------------------------------------------------------------------------
Japan: 6.84%
- --------------------------------------------------------------------------
Federal National
Mortgage Association,
2.00%, 12/20/99 Jpy 350,000,000 2,993,709
International Bank
Reconstruction
& Development,
4.50%, 6/20/00 870,000,000 7,943,638
Japan Development Bank,
6.50%, 9/20/01 400,000,000 4,016,224
Kingdom of Belgium,
5.00%, 12/17/99 250,000,000 2,269,655
Kingdom of Spain,
5.75%, 3/23/02 360,000,000 3,579,036
Republic of Italy,
3.50%, 6/20/01 960,000,000 8,670,552
-----------
29,472,814
-----------
- --------------------------------------------------------------------------
Netherlands: 11.56%
- --------------------------------------------------------------------------
Netherlands Government,
7.50%, 1/15/23 Nlg 11,000,000 6,613,549
Netherlands Government,
8.25%, 9/15/07 39,500,000 24,255,453
Netherlands Government,
9.00%, 5/15/00 33,500,000 18,980,754
-----------
49,849,756
-----------
1997 Annual Report o Delaware Pooled Trust 45
<PAGE>
Principal Market Value
Amount* (U.S.$)
- --------------------------------------------------------------------------
New Zealand: 8.54%
- --------------------------------------------------------------------------
Government of
New Zealand,
8.00%, 2/15/01 NZ$ 12,500,000 $ 8,044,928
Government of
New Zealand,
8.00%, 4/15/04 25,000,000 16,660,220
Government of
New Zealand,
8.00%, 11/15/06 17,700,000 12,101,281
------------
36,806,429
------------
- --------------------------------------------------------------------------
Spain: 2.66%
- --------------------------------------------------------------------------
Spanish Government,
0.00%, 1/31/01 Esp 1,000,000,000 6,729,700
Spanish Government,
0.00%, 1/31/08 700,000,000 4,722,301
------------
11,452,001
------------
- --------------------------------------------------------------------------
Sweden: 2.87%
- --------------------------------------------------------------------------
Nordic Investment Bank,
10.25%, 1/7/99 Sk 8,000,000 1,125,766
Swedish Government,
9.00%, 4/20/09 20,000,000 3,206,182
Swedish Government,
10.25%, 5/5/03 30,000,000 4,774,221
Swedish Government,
13.00%, 6/15/01 20,000,000 3,281,348
------------
12,387,517
------------
- --------------------------------------------------------------------------
United Kingdom: 5.53%
- --------------------------------------------------------------------------
Abbey National Treasury,
8.00%, 4/2/03 Gbp 2,500,000 4,337,068
Anglian Water,
12.00%, 1/7/14 800,000 1,913,859
Barclays Bank,
6.50%, 2/16/04 3,500,000 5,701,792
Glaxo Wellcome,
8.75%, 12/1/05 2,500,000 4,596,193
Southern Electric,
10.25%, 3/27/02 1,000,000 1,851,041
Tesco,
8.75%, 2/20/03 1,750,000 3,122,061
UK Treasury,
8.00%, 6/10/03 1,300,000 2,313,120
------------
23,835,134
------------
<PAGE>
Principal Market Value
Amount* (U.S.$)
- --------------------------------------------------------------------------
United States: 27.22%
- --------------------------------------------------------------------------
J. Sainsbury,
6.25%, 3/27/02 $ 1,600,000 $ 1,594,000
Korea Electric Power,
6.375%, 12/1/03 3,600,000 3,325,500
Matsushita Electric,
7.25%, 8/1/02 3,200,000 3,336,000
Republic of Finland,
7.875%, 7/28/04 3,200,000 3,494,000
U.S.Treasury Inflation
Index Note,
3.375%, 1/15/07 11,649,845 11,493,270
U.S. Treasury Note,
6.125%, 7/31/00 20,000,000 20,210,998
U.S. Treasury Note,
6.25%, 2/15/03 32,000,000 32,643,517
U.S. Treasury Notes,
7.50%, 11/15/01 21,000,000 22,290,028
U.S. Treasury Note,
7.875%, 11/15/04 17,000,000 18,940,378
------------
117,327,691
------------
- --------------------------------------------------------------------------
Total Bonds
(cost $400,623,349) 404,611,259
==========================================================================
- --------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 7.76%
- --------------------------------------------------------------------------
With Chase Manhattan Bank
5.65% 11/3/97 (dated
10/31/97, collateralized
by $11,869,000 U.S.
Treasury Notes 5.75%
due 10/31/00, market
value $11,883,543) 11,636,000 11,636,000
With PaineWebber
5.65% 11/3/97 (dated
10/31/97, collateralized
by $11,064,000 U.S.
Treasury Notes 5.125%
due 2/28/98, market
value $11,145,343) 10,914,000 10,914,000
With Prudential Securities
5.65% 11/3/97 (dated
10/31/97, collateralized
by $10,997,000 U.S.
Treasury Notes 5.875%
due 2/28/99, market
value $11,141,881) 10,914,000 10,914,000
- --------------------------------------------------------------------------
Total Repurchase Agreements
(cost $33,464,000) 33,464,000
==========================================================================
46 Delaware Pooled Trust o 1997 Annual Report
<PAGE>
TOTAL MARKET VALUE OF SECURITIES: 101.62%
(COST $434,087,349) $438,075,259
==========================================================================
- --------------------------------------------------------------------------
LIABILITIES NET OF RECEIVABLES
AND OTHER ASSETS: (1.62%) (6,999,656)
==========================================================================
- --------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
38,434,761 SHARES ($0.01 PAR VALUE)
OUTSTANDING; EQUIVALENT TO
$11.22 PER SHARE: 100.00% $431,075,603
==========================================================================
- --------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 1997:
- --------------------------------------------------------------------------
Common stock, $0.01 par value,
550,000,000 shares authorized
to the Fund with 50,000,000
shares allocated to this Portfolio $ 413,259,701
Undistributed net investment income** 7,169,248
Accumulated net realized gain on
investments 6,591,083
Net unrealized apppreciation on
investments and foreign currencies 4,055,571
- --------------------------------------------------------------------------
Total Net Assets $431,075,603
==========================================================================
* Principal amount is stated in the currency in which each security is
denominated:
C$ = Canadian Dollars
Dem = German Deutsche Marks
Dk = Danish Kroner
Esp = Spanish Pesetas
Gbp = British Pounds
Itl = Italian Lire
Jpy = Japanese Yen
Nlg = Dutch Guilders
NZ$ = New Zealand Dollars
Sk = Swedish Kroner
$ = U.S. Dollars
** Undistributed net investment income includes net realized gain 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 International Fixed Income Portfolio
Statement of Net Assets
October 31, 1997
Principal Market Value
Amount* (U.S.$)
- --------------------------------------------------------------------------
BONDS: 94.92%
- --------------------------------------------------------------------------
Canada: 9.04%
- --------------------------------------------------------------------------
Abbey National
Treasury Service,
6.75%, 2/25/04 C$ 500,000 $ 372,869
CHUBU Electric Power,
7.375%, 3/30/01 500,000 374,735
General Electric
Capital of Canada,
7.125%, 2/12/04 800,000 613,360
Government of Canada,
7.50%, 12/1/03 700,000 555,962
Government of Canada,
8.75%, 12/1/05 950,000 821,700
Government of Canada,
10.25%, 3/15/14 300,000 311,551
----------
3,050,177
----------
- --------------------------------------------------------------------------
Denmark: 2.93%
- --------------------------------------------------------------------------
Kingdom of Denmark,
7.00%, 12/15/04 Dk 3,000,000 487,235
Kingdom of Denmark,
8.00%, 11/15/01 3,000,000 499,787
----------
987,022
----------
- --------------------------------------------------------------------------
Germany: 24.25%
- --------------------------------------------------------------------------
Baden Wurt L-Finance NV,
5.25%, 9/26/01 Dem 2,000,000 1,180,052
Baden Wurt L-Finance NV,
6.625%, 8/20/03 900,000 553,204
Bayerische Vereinsbank,
6.50%, 6/6/05 800,000 487,794
Bundesrepublik Deutschland,
6.50%, 7/15/03 4,000,000 2,466,106
Bundesrepublik Deutschland,
6.50%, 10/14/05 700,000 431,609
Bundesrepublik Deutscheland,
8.375%, 5/21/01 2,000,000 1,291,157
DSL Finance NV,
6.00%, 2/21/06 700,000 413,018
Republic of Finland,
5.50%, 2/9/01 2,300,000 1,357,060
----------
8,180,000
----------
1997 Annual Report o Delaware Pooled Trust 47
<PAGE>
Principal Market Value
Amount* (U.S.$)
- --------------------------------------------------------------------------
Italy: 8.07%
- --------------------------------------------------------------------------
Deutsche Bank
Finance NV,
8.25%, 1/7/04 Itl 1,800,000,000 $ 1,182,562
Italian Government,
6.75%, 2/1/07 200,000,000 122,742
Italian Government,
12.00%, 1/1/03 1,900,000,000 1,416,432
----------
2,721,736
----------
- --------------------------------------------------------------------------
Japan: 13.36%
- --------------------------------------------------------------------------
Federal National
Mortgage Association,
2.00%, 12/20/99 Jpy 40,000,000 342,138
International Bank
Reconstruction &
Development,
4.50%, 6/20/00 140,000,000 1,278,287
Japan Development Bank,
5.00%, 10/1/99 80,000,000 720,882
Japan Development Bank,
6.50%, 9/20/01 50,000,000 502,028
Kingdom of Belgium,
5.00%, 12/17/99 30,000,000 272,359
Kingdom of Spain,
5.75%, 3/23/02 140,000,000 1,391,847
----------
4,507,541
----------
- --------------------------------------------------------------------------
Netherlands: 12.62%
- --------------------------------------------------------------------------
Netherlands Government,
7.50%, 1/15/23 Nlg 600,000 360,739
Netherlands Government,
8.25%, 9/15/07 4,500,000 2,763,279
Netherlands Government,
9.00%, 5/15/00 2,000,000 1,133,179
----------
4,257,197
----------
- --------------------------------------------------------------------------
New Zealand: 9.57%
- --------------------------------------------------------------------------
Government of
New Zealand,
8.00%, 4/15/04 NZ$ 500,000 333,204
Government of
New Zealand,
8.00%, 11/15/06 2,450,000 1,676,261
Government of
New Zealand,
10.00%, 3/15/02 1,750,000 1,220,610
----------
3,230,075
----------
<PAGE>
Principal Market Value
Amount* (U.S.$)
- --------------------------------------------------------------------------
Spain: 3.99%
- --------------------------------------------------------------------------
Spanish Government,
0.00%, 1/31/01 Esp 150,000,000 $ 1,009,455
Spanish Government,
0.00%, 1/31/08 50,000,000 337,307
----------
1,346,762
----------
- --------------------------------------------------------------------------
Sweden: 3.03%
- --------------------------------------------------------------------------
Swedish Government,
8.00%, 8/15/07 Sk 2,500,000 371,813
Swedish Government,
9.00%, 4/20/09 1,500,000 240,464
Swedish Government,
13.00%, 6/15/01 2,500,000 410,169
----------
1,022,446
----------
- --------------------------------------------------------------------------
United Kingdom: 8.06%
- --------------------------------------------------------------------------
Anglian Water,
12.00%, 1/7/14 Gbp 100,000 239,232
Midland Bank,
9.00%, 11/23/05 400,000 731,203
SmithKline Beecham Notes,
8.375%, 12/29/00 150,000 258,811
Thames Water Utilities,
10.50%, 11/21/01 400,000 741,254
UK Treasury,
8.50%, 12/7/05 400,000 748,164
----------
2,718,664
----------
- --------------------------------------------------------------------------
Total Bonds
(cost $31,318,991) 32,021,620
==========================================================================
- --------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 2.64%
- --------------------------------------------------------------------------
With Chase Manhattan Bank
5.65% 11/3/97 (dated
10/31/97, collateralized
by $315,000 U.S.
Treasury Notes 5.75%
due 10/31/00, market
value $315,697) $ 309,000 309,000
With PaineWebber
5.65% 11/3/97 (dated
10/31/97, collateralized
by $294,000 U.S.
Treasury Notes 5.125%
due 2/28/98, market
value $296,086) 290,000 290,000
48 Delaware Pooled Trust o 1997 Annual Report
<PAGE>
Principal Market Value
Amount* (U.S.$)
- --------------------------------------------------------------------------
With Prudential Securities
5.65% 11/3/97 (dated
10/31/97, collateralized
by $292,000 U.S.
Treasury Notes 5.875%
due 2/28/99, market
value $295,994) $290,000 $ 290,000
- -------------------------------------------------------------------------
Total Repurchase Agreements
(cost $889,000) 889,000
=========================================================================
- -------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITES: 97.56%
(COST $32,207,991) $ 32,910,620
=========================================================================
- -------------------------------------------------------------------------
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES: 2.44% 823,236
=========================================================================
- -------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
3,165,339 SHARES ($0.01 PAR VALUE)
OUTSTANDING; EQUIVALENT
TO $10.66 PER SHARE: 100.00% $ 33,733,856
=========================================================================
- -------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 1997:
- -------------------------------------------------------------------------
Common stock, $0.01 par value,
550,000,000 shares authorized
to the Fund with 50,000,000
shares allocated to this Portfolio $32,015,317
Undistributed net investment income** 927,141
Accumulated net realized gain on
investments 73,155
Net unrealized appreciation on
investments and foreign currencies 718,243
- -------------------------------------------------------------------------
Total Net Assets $33,733,856
=========================================================================
* Principal amount is stated in the currency in which each security is
denominated:
C$ = Canadian Dollars
Dem = German Deutsche Marks
Dk = Danish Kroner
Esp = Spanish Pesetas
Gbp = British Pounds
Itl = Italian Lire
Jpy = Japanese Yen
Nlg = Dutch Guilders
NZ$ = New Zealand Dollars
Sk = Swedish Kroner
$ = U.S. Dollars
** Undistributed net investment income includes net realized gain 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
1997 Annual Report o Delaware Pooled Trust 49
<PAGE>
==============================================================================
Delaware Pooled Trust, Inc.
Statements of Operations
<TABLE>
<CAPTION>
Year Ended 10/31/97
- ----------------------------------------------------------------------------------------------------------------------------------
The
The Real Estate
The Aggressive Investment The
Defensive Equity Growth Trust Fixed Income
Portfolio Portfolio Portfolio Portfolio
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 190,282 $ 93,179 $ 47,064 $ 1,414,726
Dividends 2,074,113 31,860 2,351,189 --
Foreign tax withheld -- -- -- --
------------------------------------------------------------------------------------
2,264,395 125,039 2,398,253 1,414,726
------------------------------------------------------------------------------------
EXPENSES:
Management fees 441,785 156,524 354,157 84,846
Custodian fees 2,150 18,994 2,500 7,095
Dividend disbursing and transfer agent
fees and expenses 6,205 6,398 4,413 27,687
Registration fees 3,550 6,382 19,924 5,932
Reports and statements to shareholders 23,404 36,390 39,012 8,372
Accounting fees and salaries 34,426 8,552 18,000 10,371
Professional fees 12,020 11,662 19,616 6,920
Directors' fees 2,015 1,082 1,459 1,062
Taxes (other than taxes on income) 5,900 14,750 1,351 305
Amortization of organization expenses 402 426 3,916 26,805
Other 7,733 13,266 4,738 157
------------------------------------------------------------------------------------
539,590 274,426 469,086 179,552
Less expenses absorbed by Delaware
Management Company, Inc.
or Delaware International Advisers Ltd. (8,538) (91,855) (80,387) (66,187)
------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) 1,733,343 (57,532) 2,009,554 1,301,361
------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN(LOSS)
ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on:
Investment transactions 12,022,384 4,684,321 2,948,532 59,570
Foreign currencies -- -- -- --
------------------------------------------------------------------------------------
Net realized gain 12,022,384 4,684,321 2,948,532 59,570
Net change in unrealized appreciation
(depreciation) on investments
and foreign currencies 4,857,200 (4,114,485) 11,291,570 285,894
------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCIES 16,879,584 569,836 14,240,102 345,464
------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 18,612,927 $ 512,304 $ 16,249,656 $ 1,646,825
====================================================================================
</TABLE>
* Date of commencement of operations.
See accompanying notes
50 Delaware Pooled Trust o 1997 Annual Report
<PAGE>
==============================================================================
<TABLE>
<CAPTION>
12/2/96* 4/14/97* 10/15/97* 4/11/97*
to Year Ended to to Year Ended to
10/31/97 10/31/97 10/31/97 10/31/97 10/31/97 10/31/97
- ------------------------------------------------------------------------------------------------------------------------------
The The
The The Labor Select The The Global The
High-Yield International International Emerging Global Fixed International
Bond Equity Equity Markets Equity Income Fixed Income
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 670,704 $ 1,277,926 $ 214,063 $ 45,016 $ 3,582 $ 21,979,916 $ 819,495
-- 13,010,423 1,153,556 138,458 895 -- --
-- (1,187,592) (95,477) (11,106) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
670,704 13,100,757 1,272,142 172,368 4,477 21,979,916 819,495
- ------------------------------------------------------------------------------------------------------------------------------
27,213 3,119,494 291,778 89,760 941 1,591,678 61,031
1,718 246,161 21,000 22,375 1,738 82,544 6,270
761 14,250 1,629 2,280 77 10,729 1,480
5,538 75,709 14,807 19,401 734 67,757 19,895
3,771 104,443 35,261 4,610 50 81,922 1,375
3,450 200,748 18,517 3,754 78 149,484 5,606
5,578 16,800 18,498 6,650 125 11,650 5,729
572 7,149 1,336 331 -- 5,684 375
57 30,946 1,143 1,064 2 27,396 1,796
3,737 232 3,871 -- -- -- --
2,279 63,303 6,860 1,471 37 43,886 1,676
- ------------------------------------------------------------------------------------------------------------------------------
54,674 3,879,235 414,700 151,696 3,782 2,072,730 105,233
(13,662) -- (69,018) (35,675) (2,548) (166,286) (31,801)
- ------------------------------------------------------------------------------------------------------------------------------
629,692 9,221,522 926,460 56,347 3,243 20,073,472 746,063
- ------------------------------------------------------------------------------------------------------------------------------
293,180 4,764,817 (141,128) 275,884 -- 6,630,336 73,155
-- 9,915,582 780,146 (22,072) 11,100 3,893,565 338,597
- ------------------------------------------------------------------------------------------------------------------------------
293,180 14,680,399 639,018 253,812 11,100 10,523,901 411,752
248,704 6,398,012 3,140,371 (3,656,755) (159,467) (10,556,890) 718,243
- ------------------------------------------------------------------------------------------------------------------------------
541,884 21,078,411 3,779,389 (3,402,943) (148,367) (32,989) 1,129,995
- ------------------------------------------------------------------------------------------------------------------------------
$ 1,171,576 $ 30,299,933 $ 4,705,849 $ (3,346,596) $ (145,124) $ 20,040,483 $ 1,876,058
==============================================================================================================================
</TABLE>
1997 Annual Report o Delaware Pooled Trust 51
<PAGE>
==============================================================================
Delaware Pooled Trust, Inc.
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Year Ended 10/31/97
- -------------------------------------------------------------------------------------------------------------------------------
The
The Real Estate
The Aggressive Investment The
Defensive Equity Growth Trust Fixed Income
Portfolio Portfolio Portfolio Portfolio
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS FROM OPERATIONS:
Net investment income (loss) $ 1,733,343 $ (57,532) $ 2,009,554 $ 1,301,361
Net realized gain on investments
and foreign currencies 12,022,384 4,684,321 2,948,532 59,570
Net change in unrealized appreciation
(depreciation) 4,857,200 (4,114,485) 11,291,570 285,894
------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 18,612,927 512,304 16,249,656 1,646,825
------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income (1,789,049) -- (1,524,572) (1,301,361)
Net realized gain from investment
transactions (6,352,621) (4,575,497) (1,672,794) --
------------------------------------------------------------------------------
(8,141,670) (4,575,497) (3,197,366) (1,301,361)
------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 17,492,313 1,889,723 19,188,692 18,629,497
Net asset value of shares issued upon
reinvestment of dividends from net
investment income and net realized gain
from investment transactions 7,929,503 4,575,497 3,197,366 1,108,729
------------------------------------------------------------------------------
25,421,816 6,465,220 22,386,058 19,738,226
Cost of shares repurchased (21,970,059) (20,610,124) (1,816,777) (235,059)
------------------------------------------------------------------------------
Increase (decrease) in net assets derived
from capital share transactions 3,451,757 (14,144,904) 20,569,281 19,503,167
------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN
NET ASSETS 13,923,014 (18,208,097) 33,621,571 19,848,631
NET ASSETS:
Beginning of period 67,178,884 28,525,544 26,467,638 10,517,565
------------------------------------------------------------------------------
End of period $ 81,101,898 $ 10,317,447 $ 60,089,209 $ 30,366,196
==============================================================================
</TABLE>
* Date of commencement of operations.
See accompanying notes
52 Delaware Pooled Trust o 1997 Annual Report
<PAGE>
==============================================================================
<TABLE>
<CAPTION>
12/2/96* 4/14/97* 10/15/97* 4/11/97*
to Year Ended to to Year Ended to
10/31/97 10/31/97 10/31/97 10/31/97 10/31/97 10/31/97
- --------------------------------------------------------------------------------------------------------------------------------
The The
The The Labor Select The The Global The
High-Yield International International Emerging Global Fixed International
Bond Equity Equity Markets Equity Income Fixed Income
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 629,692 $ 9,221,522 $ 926,460 $ 56,347 $ 3,243 $ 20,073,472 $ 746,063
293,180 14,680,399 639,018 253,812 11,100 10,523,901 411,752
248,704 6,398,012 3,140,371 (3,656,755) (159,467) (10,556,890) 718,243
- --------------------------------------------------------------------------------------------------------------------------------
1,171,576 30,299,933 4,705,849 (3,346,596) (145,124) 20,040,483 1,876,058
- --------------------------------------------------------------------------------------------------------------------------------
(403,902) (11,268,773) (1,153,521) -- -- (21,129,839) (157,519)
-- -- -- -- -- (3,784,780) --
- --------------------------------------------------------------------------------------------------------------------------------
(403,902) (11,268,773) (1,153,521) -- -- (24,914,619) (157,519)
- --------------------------------------------------------------------------------------------------------------------------------
10,176,010 182,110,042 25,199,358 21,911,196 3,000,009 167,798,535 31,857,788
403,902 10,374,375 1,153,521 -- -- 20,509,749 157,519
- --------------------------------------------------------------------------------------------------------------------------------
10,579,912 192,484,417 26,352,879 21,911,196 3,000,009 188,308,284 32,015,307
-- (11,269,759) (2,163,117) -- -- (4,426,796) --
- --------------------------------------------------------------------------------------------------------------------------------
10,579,912 181,214,658 24,189,762 21,911,196 3,000,009 183,881,488 32,015,307
- --------------------------------------------------------------------------------------------------------------------------------
11,347,586 200,245,818 27,742,090 18,564,600 2,854,885 179,007,352 33,733,846
-- 299,949,843 23,153,615 -- -- 252,068,251 10
- --------------------------------------------------------------------------------------------------------------------------------
$ 11,347,586 $ 500,195,661 $ 50,895,705 $ 18,564,600 $ 2,854,885 $ 431,075,603 $33,733,856
================================================================================================================================
</TABLE>
1997 Annual Report o Delaware Pooled Trust 53
<PAGE>
==============================================================================
Delaware Pooled Trust, Inc.
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
12/6/95* 3/12/96*
Year Ended to to
10/31/96 10/31/96 10/31/96
- ----------------------------------------------------------------------------------------------------------------------------------
The Real
The The Estate The
Defensive Aggressive Investment Fixed
Equity Growth Trust Income
Portfolio Portfolio Portfolio Portfolio
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss) $ 1,792,025 $ (49,150) $ 1,367,988 $ 310,760
Net realized gain (loss) on
investments and foreign currencies 6,423,225 4,554,847 1,655,753 (40,384)
Net change in unrealized
appreciation 5,345,676 154,982 2,263,515 120,099
----------------------------------------------------------------------------------
Net increase in net assets
resulting from operations 13,560,926 4,660,679 5,287,256 390,475
----------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income (1,659,884) (81,854) (199,358) (310,760)
Net realized gain from
investment transactions (4,186,924) (1,194,103) -- --
----------------------------------------------------------------------------------
(5,846,808) (1,275,957) (199,358) (310,760)
----------------------------------------------------------------------------------
CAPITAL SHARE
TRANSACTIONS:
Proceeds from shares sold 13,087,899 2,730,729 21,180,890 10,119,174
Net asset value of shares issued
upon reinvestment of dividends
from net investment income
and net realized gain
from investment transactions 5,677,329 1,275,957 199,358 297,676
----------------------------------------------------------------------------------
18,765,228 4,006,686 21,380,248 10,416,850
----------------------------------------------------------------------------------
Cost of shares repurchased (11,247,559) (7,957,748) (508) --
----------------------------------------------------------------------------------
Increase (decrease) in net assets
derived from capital
share transactions 7,517,669 (3,951,062) 21,379,740 10,416,850
----------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS 15,231,787 (566,340) 26,467,638 10,496,565
----------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 51,947,097 29,091,884 -- 21,000
----------------------------------------------------------------------------------
End of period $ 67,178,884 $ 28,525,544 $ 26,467,638 $ 10,517,565
----------------------------------------------------------------------------------
</TABLE>
<PAGE>
[RESTUBBED TABLE]
==============================================================================
Delaware Pooled Trust, Inc.
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
12/19/95*
Year Ended to Year Ended
10/31/96 10/31/96 10/31/96
- -----------------------------------------------------------------------------------------------------------------------
The Labor The
The Select Global
International International Fixed
Equity Equity Income
Portfolio Portfolio Portfolio
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss) $ 5,549,857 $ 383,778 $ 11,536,031
Net realized gain (loss) on
investments and foreign currencies 2,291,454 399,170 5,273,549
Net change in unrealized
appreciation 26,883,462 1,488,711 9,570,431
--------------------------------------------------------------------
Net increase in net assets
resulting from operations 34,724,773 2,271,659 26,380,011
--------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income (6,354,756) (138,359) (10,006,060)
Net realized gain from
investment transactions (1,816,432) -- (1,840,321)
--------------------------------------------------------------------
(8,171,188) (138,359) (11,846,381)
--------------------------------------------------------------------
CAPITAL SHARE
TRANSACTIONS:
Proceeds from shares sold 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 investment transactions 7,927,782 138,359 9,235,082
--------------------------------------------------------------------
126,511,724 24,720,315 143,128,254
--------------------------------------------------------------------
Cost of shares repurchased (9,582,578) (3,700,000) (4,754,302)
--------------------------------------------------------------------
Increase (decrease) in net assets
derived from capital
share transactions 116,929,146 21,020,315 138,373,952
--------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS 143,482,731 23,153,615 152,907,582
--------------------------------------------------------------------
NET ASSETS:
Beginning of period 156,467,112 -- 99,160,669
--------------------------------------------------------------------
End of period $ 299,949,843 $ 23,153,615 $ 252,068,251
--------------------------------------------------------------------
</TABLE>
*Date of commencement of operations.
See accompanying notes
54 Delaware Pooled Trust o 1997 Annual Report
<PAGE>
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 Year
Ended Ended Ended Ended Ended
10/31/97 10/31/96 10/31/95 10/31/94 10/31/93
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 16.4600 $14.6600 $13.0800 $12.7300 $10.6600
Income from investment operations:
Net investment income 0.3807 0.4404 0.4303 0.3203 0.2841
Net realized and unrealized gain
from investments 3.5993 2.9596 1.9797 0.6527 2.3159
--------------------------------------------------------------------------
Total from investment operations 3.9800 3.4000 2.4100 0.9730 2.6000
--------------------------------------------------------------------------
Less dividends and distributions:
Dividends from net investment income (0.4100) (0.4400) (0.3400) (0.2800) (0.3200)
Distributions from net realized gain
on investment transactions (1.5000) (1.1600) (0.4900) (0.3430) (0.2100)
--------------------------------------------------------------------------
Total dividends and distributions (1.9100) (1.6000) (0.8300) (0.6230) (0.5300)
--------------------------------------------------------------------------
Net asset value, end of period $ 18.5300 $16.4600 $14.6600 $13.0800 $12.7300
==========================================================================
Total Return 26.73% 24.87% 19.77% 7.96% 25.17%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $ 81,102 $ 67,179 $ 51,947 $ 37,323 $ 13,418
Ratio of expenses to average net assets 0.66% 0.67% 0.68% 0.68% 0.68%
Ratio of expenses to average net
assets prior to expense limitation 0.67% 0.70% 0.71% 0.82% 1.38%
Ratio of net investment income to
average net assets 2.15% 2.85% 3.33% 3.26% 2.90%
Ratio of net investment income to
average net assets prior
to expense limitation 2.14% 2.83% 3.30% 3.12% 2.20%
Portfolio turnover 73% 74% 88% 73% 37%
Average commission rate paid\1 $ 0.0600 $ 0.0600 N/A N/A N/A
</TABLE>
- -------------------------------------------------------------------------------
1 Computed by dividing the total amount of commissions paid by the total number
of shares purchased and sold during the period for which there was a
commission charged.
See accompanying notes
1997 ANNUAL REPORT o DELAWARE POOLED TRUST 55
<PAGE>
Financial Highlights
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 Year
Ended Ended Ended Ended Ended
10/31/97 10/31/96 10/31/95 10/31/94 10/31/93
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $14.5700 $12.8600 $11.0100 $11.2000 $ 9.0400
Income from investment operations:
Net investment income (loss) (0.1165) (0.0188) 0.0428 0.0075 0.0181
Net realized and unrealized gain
from investments 1.6065 2.3913 2.0552 0.0325 2.1589
--------------------------------------------------------------------------
Total from investment operations 1.4900 2.3725 2.0980 0.0400 2.1770
--------------------------------------------------------------------------
Less dividends and distributions:
Dividends from net investment income none (0.0425) (0.0120) (0.0200) (0.0170)
Distributions from net realized gain
on investment transactions (2.3800) (0.6200) (0.2360) (0.2100) none
--------------------------------------------------------------------------
Total dividends and distributions (2.3800) (0.6625) (0.2480) (0.2300) (0.0170)
--------------------------------------------------------------------------
Net asset value, end of period $13.6800 $14.5700 $12.8600 $11.0100 $ 11.2000
==========================================================================
Total Return 11.84% 19.19% 19.61% 0.34% 24.10%
Ratios and supplemental data:
Net assets, end of period
(000 omitted) $ 10,317 $ 28,526 $ 29,092 $ 22,640 $ 20,478
Ratio of expenses to average
net assets 0.93% 0.90% 0.93% 0.93% 0.93%
Ratio of expenses to average net
assets prior to expense limitation 1.40% 1.01% 1.08% 1.17% 1.40%
Ratio of net investment income (loss)
to average net assets (0.29%) (0.18%) 0.37% 0.07% 0.23%
Ratio of net investment income (loss)
to average net assets prior to
expense limitation (0.76%) (0.29%) 0.22% (0.17%) (0.24%)
Portfolio turnover 117% 95% 64% 43% 81%
Average commission rate paid\1 $ 0.0600 $ 0.0600 N/A N/A N/A
</TABLE>
- -------------------------------------------------------------------------------
1 Computed by dividing the total amount of commissions paid by the total number
of shares purchased and sold during the period for which there was a
commission charged.
See accompanying notes
56 DELAWARE POOLED TRUST o 1997 ANNUAL TRUST
<PAGE>
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout each period
were as follows:
The Real Estate Investment Trust Portfolio
- -------------------------------------------------------------------------------
Year 12/6/95\1
Ended to
10/31/97 10/31/96
Net asset value, beginning of period $ 12.4900 $ 10.0000
Income from investment operations:
Net investment income 0.6162 0.6515
Net realized and unrealized gain from
investments 4.6638 1.9385
---------- ----------
Total from investment operations 5.2800 2.5900
---------- ----------
Less dividends and distributions:
Dividends from net investment income (0.7200) (0.1000)
Distributions from net realized gain on
investment transactions (0.7900) none
---------- ----------
Total dividends and distributions (1.5100) (0.1000)
---------- ----------
Net asset value, end of period $ 16.2600 $ 12.4900
========== ==========
Total Return 46.50% 26.12%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $ 60,089 $ 26,468
Ratio of expenses to average net assets 0.82% 0.89%
Ratio of expenses to average net assets
prior to expense limitation 0.99% 1.02%
Ratio of net investment income to
average net assets 4.25% 6.70%
Ratio of net investment income to average
net assets prior to expense limitation 4.08% 6.57%
Portfolio turnover 58% 109%
Average commission rate paid\2 $ 0.0576 $ 0.0600
- -------------------------------------------------------------------------------
1 Date of commencement of operations; ratios have been annualized and total
return has not been annualized.
2 Computed by dividing the total amount of commissions paid by the total number
of shares purchased and sold during the period for which there was a
commission charged.
See accompanying notes
1997 ANNUAL REPORT o DELAWARE POOLED TRUST 57
<PAGE>
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout each period
were as follows:
The Fixed Income Portfolio
- -------------------------------------------------------------------------------
Year 3/12/96\1
Ended to
10/31/97 10/31/96
Net asset value, beginning of period $10.0100 $10.0000
Income from investment operations:
Net investment income 0.6053 0.3856
Net realized and unrealized gain from
investments 0.0800 0.0100
--------------------------
Total from investment operations 0.6853 0.3956
--------------------------
Less dividends and distributions:
Dividends from net investment income (0.6053) (0.3856)
Distributions from net realized gain
on investment transactions none none
--------------------------
Total dividends and distributions (0.6053) (0.3856)
--------------------------
Net asset value, end of period $10.0900 $10.0100
==========================
Total Return 7.09% 4.08%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $ 30,366 $ 10,518
Ratio of expenses to average net assets 0.53% 0.53%
Ratio of expenses to average net assets
prior to expense limitation 0.84% 1.20%
Ratio of net investment income to
average net assets 6.05% 6.14%
Ratio of net investment income to average
net assets prior to expense limitation 5.74% 5.47%
Portfolio turnover 205% 232%
- ------------------------------------------------------------------------------
1 Date of commencement of operations; ratios have been annualized and total
return has not been annualized.
See accompanying notes
58 DELAWARE POOLED TRUST o 1997 ANNUAL REPORT
<PAGE>
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout the period
was as follows:
The High-Yield Bond Portfolio
- -------------------------------------------------------------------------------
12/2/96\1
to
10/31/97
Net asset value, beginning of period $10.0000
Income from investment operations:
Net investment income 0.7875
Net realized and unrealized gain
from investments 0.9575
--------
Total from investment operations 1.7450
--------
Less dividends and distributions:
Dividends from net investment income (0.5650)
Distributions from net realized gain on
investment transactions none
--------
Total dividends and distributions (0.5650)
--------
Net asset value, end of period $11.1800
========
Total Return 17.92%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $ 11,348
Ratio of expenses to average net assets 0.59%
Ratio of expenses to average net assets
prior to expense limitation 0.79%
Ratio of net investment income to
average net assets 9.05%
Ratio of net investment income to
average net assets prior to
expense limitation 8.85%
Portfolio turnover 281%
- -------------------------------------------------------------------------------
1 Date of commencement of operations; ratios have been annualized and total
return has not been annualized.
See accompanying notes
1997 ANNUAL REPORT o DELAWARE POOLED TRUST 59
<PAGE>
Financial Highlights
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 Year
Ended Ended Ended Ended Ended
10/31/97 10/31/96 10/31/95 10/31/94 10/31/93
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $14.7800 $13.1200 $13.1100 $11.9900 $ 9.5000
Income from investment operations:
Net investment income 0.3287 0.5063 0.4749 0.1440 0.2414
Net realized and unrealized gain from
investments and foreign currencies 1.2713 1.7937 0.0011 1.2360 2.5686
-------------------------------------------------------------------------
Total from investment operations 1.6000 2.3000 0.4760 1.3800 2.8100
-------------------------------------------------------------------------
Less dividends and distributions:
Dividends from net investment income (0.5200) (0.4900) (0.1700) (0.1600) (0.3200)
Distributions from net realized gain on
investment transactions none (0.1500) (0.2960) (0.1000) none
-------------------------------------------------------------------------
Total dividends and distributions (0.5200) (0.6400) (0.4660) (0.2600) (0.3200)
-------------------------------------------------------------------------
Net asset value, end of period $15.8600 $14.7800 $13.1200 $13.1100 $11.9900
=========================================================================
Total Return 11.01% 18.12% 3.91% 11.66% 30.28%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $500,196 $299,950 $156,467 $ 70,820 $ 24,288
Ratio of expenses to average net assets 0.93% 0.89% 0.90% 0.94% 0.96%
Ratio of expenses to average net assets
prior to expense limitation 0.93% 0.89% 0.90% 0.97% 1.38%
Ratio of net investment income to
average net assets 2.21% 4.36% 4.81% 1.36% 2.98%
Ratio of net investment income to
average net assets prior to
expense limitation 2.21% 4.36% 4.81% 1.33% 2.56%
Portfolio turnover 8% 8% 20% 22% 28%
Average commission rate paid\1 $ 0.0217 $ 0.0198 N/A N/A N/A
</TABLE>
- -------------------------------------------------------------------------------
1 Computed by dividing the total amount of commissions paid by the total number
of shares purchased and sold during the period for which there was a
commission charged.
See accompanying notes
60 DELAWARE POOLED TRUST o 1997 ANNUAL REPORT
<PAGE>
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout each period
were as follows:
The Labor Select International Equity Portfolio
- -------------------------------------------------------------------------------
Year 12/19/95\1
Ended to
10/31/97 10/31/96
Net asset value, beginning of period $11.6900 $10.0000
Income from investment operations:
Net investment income 0.4740 0.4785
Net realized and unrealized gain from
investments and foreign currencies 1.3460 1.3115
--------------------------
Total from investment operations 1.8200 1.7900
--------------------------
Less dividends and distributions:
Dividends from net investment income (0.5200) (0.1000)
Distributions from net realized gain on
investment transactions none none
--------------------------
Total dividends and distributions (0.5200) (0.1000)
--------------------------
Net asset value, end of period $12.9900 $11.6900
==========================
Total Return 16.01% 17.97%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $ 50,896 $23,154
Ratio of expenses to average net assets 0.89% 0.92%
Ratio of expenses to average net assets
prior to expense limitation 1.06% 1.30%
Ratio of net investment income to
average net assets 2.37% 6.64%
Ratio of net investment income to
average net assets prior to
expense limitation 2.20% 6.26%
Portfolio turnover 11% 7%
Average commission rate paid\2 $ 0.0263 $0.0330
- -------------------------------------------------------------------------------
1 Date of commencement of operations; ratios have been annualized and total
return has not been annualized.
2 Computed by dividing the total amount of commissions paid by the total number
of shares purchased and sold during the period for which there was a
commission charged.
See accompanying notes
1997 ANNUAL REPORT o DELAWARE POOLED TRUST 61
<PAGE>
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout the period
was as follows:
The Emerging Markets Portfolio
- -------------------------------------------------------------------------------
4/14/97\1
to
10/31/97
Net asset value, beginning of period $10.0000
Income from investment operations:
Net investment income 0.0279
Net realized and unrealized loss from
investments and foreign currencies (0.8279)
--------
Total from investment operations (0.8000)
--------
Less dividends and distributions:
Dividends from net investment income none
Distributions from net realized gain on
investment transactions none
--------
Total dividends and distributions none
--------
Net asset value, end of period $ 9.2000
========
Total Return (8.00%)
Ratios and supplemental data:
Net assets, end of period (000 omitted) $ 18,565
Ratio of expenses to average net assets 1.55%
Ratio of expenses to average net assets
prior to expense limitation 2.02%
Ratio of net investment income to
average net assets 0.74%
Ratio of net investment income to
average net assets prior to
expense limitation 0.27%
Portfolio turnover 46%
Average commission rate paid\2 $ 0.0049
- -------------------------------------------------------------------------------
1 Date of commencement of operations; ratios have been annualized and total
return has not been annualized.
2 Computed by dividing the total amount of commissions paid by the total number
of shares purchased and sold during the period for which there was a
commission charged.
See accompanying notes
62 DELAWARE POOLED TRUST o 1997 ANNUAL REPORT
<PAGE>
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout the period
was as follows:
The Global Equity Portfolio
- -------------------------------------------------------------------------------
10/15/97\1
to
10/31/97
Net asset value, beginning of period $8.5000
Income from investment operations:
Net investment income 0.0092
Net realized and unrealized loss from
investments and foreign currencies (0.3892)
--------
Total from investment operations (0.3800)
--------
Less dividends and distributions:
Dividends from net investment income none
Distributions from net realized gain
on investment transactions none
--------
Total dividends and distributions none
--------
Net asset value, end of period $8.1200
========
Total Return (4.47%)
Ratios and supplemental data:
Net assets, end of period (000 omitted) $ 2,855
Ratio of expenses to average net assets 0.96%
Ratio of expenses to average net assets
prior to expense limitation 2.95%
Ratio of net investment income to
average net assets 2.54%
Ratio of net investment income to
average net assets prior to
expense limitation 0.55%
Portfolio turnover 0%
Average commission rate paid\2 $0.0169
- -------------------------------------------------------------------------------
1 Date of commencement of operations; ratios have been annualized and total
return has not been annualized.
2 Computed by dividing the total amount of commissions paid by the total number
of shares purchased and sold during the period for which there was a
commission charged.
See accompanying notes
1997 ANNUAL REPORT o DELAWARE POOLED TRUST 63
<PAGE>
Financial Highlights
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 Year 11/30/92\1
Ended Ended Ended Ended to
10/31/97 10/31/96 10/31/95 10/31/94 10/31/93
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $11.6200 $11.0400 $ 9.7900 $11.0900 $10.0000
Income from investment operations:
Net investment income 0.7205 0.7774 0.7357 0.4189 0.9547
Net realized and unrealized gain (loss)
from investments and foreign currencies (0.1155) 0.7246 0.9243 (0.1929) 0.7433
--------------------------------------------------------------------------
Total from investment operations 0.6050 1.5020 1.6600 0.2260 1.6980
--------------------------------------------------------------------------
Less dividends and distributions:
Dividends from net investment income (0.8350) (0.7200) (0.4100) (0.9490) (0.6080)
Distributions from net realized gain
on investment transactions (0.1700) (0.2020) none (0.5770) none
--------------------------------------------------------------------------
Total dividends and distributions (1.0050) (0.9220) (0.4100) (1.5260) (0.6080)
--------------------------------------------------------------------------
Net asset value, end of period $11.2200 $11.6200 $11.0400 $ 9.7900 $11.0900
==========================================================================
Total Return 5.59% 16.40% 17.38% 2.07% 18.96%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $431,076 $252,068 $ 99,161 $ 42,266 $29,313
Ratio of expenses to average net assets 0.60% 0.60% 0.60% 0.62% 0.62%
Ratio of expenses to average net assets
prior to expense limitation 0.65% 0.66% 0.68% 0.76% 0.88%
Ratio of net investment income to
average net assets 6.28% 8.52% 6.73% 3.62% 10.68%
Ratio of net investment income to
average net assets prior to
expense limitation 6.23% 8.46% 6.65% 3.48% 10.42%
Portfolio turnover 114% 63% 77% 205% 198%
</TABLE>
- -------------------------------------------------------------------------------
1 Date of commencement of operations; ratios and total return have been
annualized.
See accompanying notes
64 DELAWARE POOL TRUST o 1997 ANNUAL REPORT
<PAGE>
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout the period
was as follows:
The International Fixed Income Portfolio
- -------------------------------------------------------------------------------
4/11/97\1
to
10/31/97
Net asset value, beginning of period $10.0000
Income from investment operations:
Net investment income 0.2359
Net realized and unrealized gain from
investments and foreign currencies 0.4741
---------
Total from investment operations 0.7100
---------
Less dividends and distributions:
Dividends from net investment income (0.0500)
Distributions from net realized gain on
investment transactions none
---------
Total dividends and distributions (0.0500)
---------
Net asset value, end of period $10.6600
=========
Total Return 7.11%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $ 33,734
Ratio of expenses to average net assets 0.60%
Ratio of expenses to average net assets
prior to expense limitation 0.86%
Ratio of net investment income to average
net assets 6.05%
Ratio of net investment income to average
net assets prior to expense limitation 5.79%
Portfolio turnover 145%
- -------------------------------------------------------------------------------
1 Date of commencement of operations; ratios have been annualized and total
return has not been annualized.
See accompanying notes
1997 ANNUAL REPORT o DELAWARE POOLED TRUST 65
<PAGE>
Delaware Pooled Trust, Inc.
Notes to Financial Statements
October 31, 1997
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 14
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 Labor Select International Equity Portfolio, The
Emerging Markets Portfolio, The Global Equity Portfolio, The Global Fixed
Income Portfolio, and The International 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 have 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 Fund:
Security Valuation--Securities listed on an exchange are valued at the last
quoted sales price as of the close of the NYSE 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 sales price before the Fund
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. Other
securities and assets for which market quotations are not readily available
are valued at fair value as determined in good faith by or under the
direction of the Fund's Board of Directors.
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 has been
made in the financial statements. Income and capital gain distributions are
determined in accordance with federal income tax regulations which may differ
from generally accepted accounting principles.
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.
66 Delaware Pooled Trust o 1997 Annual Report
<PAGE>
Foreign Currency Transactions--Transactions denominated in foreign currencies
are recorded at the current prevailing exchange rates. 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. Transaction gains or losses resulting from changes
in exchange rates during the reporting period or upon settlement of the
foreign currency transaction are reported in operations for the current
period. It is not practical to isolate that portion of both realized and
unrealized gains and losses on investments in equity securities in
the statement of operations that result from fluctuations in foreign currency
exchange rates. The Portfolios isolate that portion of gains and losses on
investments in debt securities which are due to changes in the foreign
exchange rate from that which are due to changes in market prices of debt
securities. The Portfolios report certain foreign currency related
transactions as components of realized gains for financial reporting purposes,
whereas such components are treated as ordinary income (loss) for federal
income tax purposes.
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 the
accrual basis. Foreign dividends are also recorded on the ex-dividend date or as
soon after the ex-dividend date that the Fund is aware of such dividends, net of
all non-rebatable tax withholdings. Original issue discounts are accreted to
interest income over the lives of the respective securities. Withholding taxes
on foreign dividends have been provided for in accordance with the Fund's
understanding of the applicable country's tax rules and rates. The Fixed Income
Portfolio expects to declare dividends daily and distribute them monthly. The
High-Yield Bond and The Global Fixed Income Portfolios expect to declare
dividends monthly and distribute them monthly. The Defensive Equity, The
International Equity, The Labor Select International Equity and The
International Fixed Income Portfolios expect to declare and distribute all of
their net investment income to shareholders as dividends quarterly. The
Aggressive Growth, The Real Estate Investment Trust, The Global Equity and The
Emerging Markets Portfolios expect to declare and distribute all of their net
investment income to shareholders as dividends annually. Net capital gains, if
any, will be distributed annually.
Certain Fund expenses are paid through "soft dollar" arrangements with
brokers. The amount of these expenses is less than 0.01% of the Fund's
average daily net assets.
Delaware Pooled Trust o 1997 Annual Report 67
<PAGE>
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.
2. Investment Management and Other Transactions with Affiliates
In accordance with the terms of the Investment Management Agreement, Delaware
Management Company, Inc. ("DMC") serves as the Investment Manager of the
Portfolios. Delaware Investment Advisers, the investment advisor of The
Defensive Equity Portfolio, The Aggressive Growth Portfolio, The Real Estate
Investment Trust Portfolio, The Fixed Income Portfolio, and The High-Yield
Bond Portfolio, and Delaware International Advisers Ltd. (DIAL), the
investment advisor of The International Equity Portfolio, The Labor Select
International Equity Portfolio, The Emerging Markets Portfolio, The Global
Equity Portfolio, The Global Fixed Income Portfolio, and The International
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, The
Real Estate Investment Trust Portfolio, The High-Yield Bond Portfolio, The
Emerging Markets Portfolio, and The International Fixed Income Portfolio. The
management fees for The Labor Select International Equity Portfolio, The Real
Estate Investment Trust Portfolio, The High-Yield Bond Portfolio, The Emerging
Markets Portfolio, and The International Fixed Income Portfolio are calculated
daily on the net assets of each Portfolio without consideration of amounts
paid to unaffiliated directors.
Lincoln Investment Management, 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. DMC receives 50% of the management fee paid to DIAL
for managing the U.S. securities portion of the Global Equity Portfolio.
DMC and DIAL have elected to waive that portion, if any, of the annual
management fees payable by each Portfolio to the extent necessary to ensure that
annual operating expenses exclusive of taxes, interest, brokerage commissions
and extraordinary expenses do not exceed 0.68%, 0.93%, 0.89%, 0.53%, 0.59%,
0.96%, 0.92%, 1.55%, 0.96%, 0.60%, and 0.60% of average daily net assets for 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 Labor Select International
Equity Portfolio, The Emerging Markets Portfolio, The Global Equity Portfolio,
The Global Fixed Income Portfolio, and The International Fixed Income Portfolio,
respectively, through October 31, 1997.
The management fee rates and total expenses absorbed by DMC and DIAL for the
period ended October 31, 1997 are as follows:
<TABLE>
<CAPTION>
Management fee as a Expenses
percentage of average daily absorbed by
net assets (per annum) DMC or DIAL
- -----------------------------------------------------------------------------------------
<S> <C> <C>
The Defensive Equity Portfolio 0.55% $ 8,538
The Aggressive Growth Portfolio 0.80% 91,855
The Real Estate Investment
Trust Portfolio 0.75% 80,387
The Fixed Income Portfolio 0.40% 66,187
The High-Yield Bond Portfolio 0.45% 13,662
The International Equity Portfolio 0.75% --
The Labor Select International
Equity Portfolio 0.75% 69,018
The Emerging Markets Portfolio 1.20% 35,675
The Global Equity Portfolio 0.75% 2,548
The Global Fixed Income Portfolio 0.50% 166,286
The International Fixed Income Portfolio 0.50% 31,801
=========================================================================================
</TABLE>
68 Delaware Pooled Trust o 1997 Annual Report
<PAGE>
The Fund has engaged Delaware Service Company, Inc. ("DSC"), an affiliate of
DMC, to serve as dividend disbursing agent, transfer agent and accounting
services agent for the Fund.
The amounts expensed for each Portfolio were as follows:
Dividend disbursing,
transfer agent fees Accounting
and other expenses fees
- -------------------------------------------------------------------------------
The Defensive Equity Portfolio $ 6,205 $ 24,962
The Aggressive Growth Portfolio 6,398 6,367
The Real Estate Investment
Trust Portfolio 4,413 15,376
The Fixed Income Portfolio 27,687 7,768
The High-Yield Bond Portfolio 761 2,490
The International Equity Portfolio 14,250 150,898
The Labor Select International
Equity Portfolio 1,629 13,763
The Emerging Markets Portfolio 2,280 2,894
The Global Equity Portfolio 77 50
The Global Fixed Income Portfolio 10,729 112,467
The International Fixed Income Portfolio 1,480 4,272
===============================================================================
On October 31, 1997, the Fund had payables to affiliates as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Dividend disbursing, Other
Investment transfer agent fees, expenses
Management accounting fees payable
fee payable to and other expenses to DMC
DMC or DIAL payable to DSC and affiliates
- --------------------------------------------------------------------------------------------------------------
The Defensive Equity Portfolio $ 38,527 $ 2,581 $ 3,499
The Aggressive Growth Portfolio 7,116 545 617
The Real Estate Investment
Trust Portfolio 24,764 2,359 2,668
The Fixed Income Portfolio 19,698 3,605 1,113
The High-Yield Bond Portfolio 27,213 8,018 11,550
The International Equity Portfolio 162,720 14,507 19,289
The Labor Select International
Equity Portfolio 34,951 2,066 2,034
The Emerging Markets Portfolio 54,085 4,034 12,841
The Global Equity Portfolio -- -- 8,543
The Global Fixed Income Portfolio 289,203 10,833 14,859
The International Fixed Income Portfolio 29,230 6,725 4,763
==============================================================================================================
</TABLE>
Certain officers of DMC, DSC and DIAL are officers, directors and/or employees
of the Fund. These officers, directors and employees are paid no compensation by
the Fund.
1997 Annual Report o Delaware Pooled Trust 69
<PAGE>
3. Investments
During the period ended October 31, 1997, the Fund made purchases
and sales of investment securities other than U.S. government securities and
temporary cash investments for each Portfolio as follows:
<TABLE>
<CAPTION>
Purchases Sales
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
The Defensive Equity Portfolio $ 55,488,984 $ 58,498,645
The Aggressive Growth Portfolio 21,136,634 38,963,117
The Real Estate Investment Trust Portfolio 46,167,032 26,790,408
The Fixed Income Portfolio 30,454,283 15,014,004
The High-Yield Bond Portfolio 29,907,955 19,467,450
The International Equity Portfolio 193,744,692 32,433,311
The Labor Select International Equity Portfolio 23,062,092 3,606,047
The Emerging Markets Portfolio 23,778,364 3,201,392
The Global Equity Portfolio 2,912,631 --
The Global Fixed Income Portfolio 514,614,597 339,640,300
The International Fixed Income Portfolio 47,808,252 16,630,191
==================================================================================================
</TABLE>
At October 31, 1997, the aggregate cost of securities and unrealized
appreciation (depreciation) for federal income tax purposes for each Portfolio
were as follows:
<TABLE>
<CAPTION>
Aggregate Aggregate Net unrealized
Cost of unrealized unrealized appreciation
Investments appreciation depreciation (depreciation)
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
The Defensive Equity Portfolio $ 66,650,132 $ 15,736,736 $ (1,606,604) $ 14,130,132
The Aggressive Growth Portfolio 8,741,083 1,930,834 (322,000) 1,608,834
The Real Estate Investment Trust Portfolio 46,372,326 13,617,910 (62,825) 13,555,085
The Fixed Income Portfolio 29,785,034 412,690 (6,697) 405,993
The High-Yield Bond Portfolio 11,153,353 264,240 (15,536) 248,704
The International Equity Portfolio 461,938,867 71,177,596 (33,192,374) 37,985,222
The Labor Select International Equity Portfolio 44,882,479 5,901,978 (1,236,700) 4,665,278
The Emerging Markets Portfolio 21,642,755 560,509 (4,217,785) (3,657,276)
The Global Equity Portfolio 3,014,631 15,491 (174,958) (159,467)
The Global Fixed Income Portfolio 434,301,999 8,775,602 (5,002,342) 3,773,260
The International Fixed Income Portfolio 32,212,778 875,113 (177,271) 697,842
=====================================================================================================================
</TABLE>
For federal income tax purposes, the Fund had accumulated capital losses at
October 31, 1997 for each Portfolio as follows:
Year of Year of
Expiration Expiration
2004 2005
- --------------------------------------------------------------------------------
The Fixed Income Portfolio $ 38,915 $ 7,479
================================================================================
70 Delaware Pooled Trust o 1997 Annual Report
<PAGE>
4. Capital Stock
Transactions in capital stock were as follows:
<TABLE>
<CAPTION>
Shares issued upon
reinvestment of dividends
from net investment
income and distributions of Net
realized gains from Shares Increase
Year ended October 31, 1997*: Shares sold security transactions repurchased (decrease)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
The Defensive Equity Portfolio 1,030,185 518,747 (1,252,701) 296,231
The Aggressive Growth Portfolio 141,433 367,510 (1,712,815) (1,203,872)
The Real Estate Investment Trust Portfolio 1,438,178 265,342 (127,788) 1,575,732
The Fixed Income Portfolio 1,870,891 111,110 (23,596) 1,958,405
The High-Yield Bond Portfolio 976,942 37,843 -- 1,014,785
The International Equity Portfolio 11,232,376 681,866 (677,473) 11,236,769
The Labor Select International Equity Portfolio 2,026,069 95,875 (184,252) 1,937,692
The Emerging Markets Portfolio 2,018,979 -- -- 2,018,979
The Global Equity Portfolio 351,701 -- -- 351,701
The Global Fixed Income Portfolio 15,282,744 1,862,757 (399,869) 16,745,632
The International Fixed Income Portfolio 3,150,380 14,959 -- 3,165,339
=======================================================================================================================
Year ended October 31, 1996**:
- -----------------------------------------------------------------------------------------------------------------------
The Defensive Equity Portfolio 867,203 394,721 (725,191) 536,733
The Aggressive Growth Portfolio 185,079 100,154 (588,835) (303,602)
The Real Estate Investment Trust Portfolio 2,099,590 19,488 (46) 2,119,032
The Fixed Income Portfolio 1,018,936 30,141 -- 1,049,077
The High-Yield Bond Portfolio -- -- -- --
The International Equity Portfolio 8,473,181 595,756 (697,650) 8,371,287
The Labor Select International Equity Portfolio 2,288,206 12,445 (319,558) 1,981,093
The Emerging Markets Portfolio -- -- -- --
The Global Equity Portfolio -- -- -- --
The Global Fixed Income Portfolio 12,279,262 860,639 (433,916) 12,705,985
The International Fixed Income Portfolio -- -- -- --
=======================================================================================================================
</TABLE>
*The High-Yield Bond Portfolio commenced operations on 12/2/96, The Emerging
Markets Portfolio commenced operations on 4/14/97, The Global Equity Portfolio
commenced operations on 10/15/97 and The International Fixed Income Portfolio
commenced operations on 4/11/97.
**The Real Estate Investment Trust Portfolio commenced operations on 12/6/95,
The Fixed Income Portfolio commenced operations on 3/12/96, and The Labor Select
International Equity Portfolio commenced operations on 12/19/95.
5. Lines of Credit
The following Portfolios have a committed line of credit for the following
amounts:
The Defensive Equity Portfolio $ 4,000,000
The Aggressive Growth Portfolio 1,600,000
The Real Estate Investment Trust Portfolio 1,400,000
The Fixed Income Portfolio 400,000
The International Equity Portfolio 20,800,000
The Labor Select International Equity Portfolio 1,800,000
The Global Fixed Income Portfolio 11,800,000
No amounts were outstanding at October 31, 1997, or at any time during the
period.
1997 Annual Report o Delaware Pooled Trust 71
<PAGE>
6. Foreign Exchange Contracts
The Fund will generally enter into forward foreign currency contracts as a way
of managing foreign exchange rate risk. A fund may enter into these contracts to
fix the U.S. dollar value of a security that it has agreed to buy or sell for
the period between the date the trade was entered into and the date the security
is delivered and paid for. A fund may also use these contracts to hedge the U.S.
dollar value of securities it already owns denominated in foreign currencies.
Forward foreign currency contracts are valued at the mean between the bid and
asked prices of the contracts and are marked-to-market daily. Interpolated
values are derived when the settlement date of the contract is an interim date
for which quotations are not available. The change in market value is recorded
by the Fund as an unrealized gain or loss. When the contract is closed, the Fund
records a realized gain or loss equal to the difference between the value of the
contract at the time it was opened and the value at the time it was closed.
The use of forward foreign currency contracts does not eliminate fluctuations in
the underlying prices of the Fund's securities, but it does establish a rate of
exchange that can be achieved in the future. Although forward foreign currency
contracts limit the risk of loss due to a decline in the value of the hedged
currency, they also limit any potential gain that might result should the value
of the currency increase. In addition, the Fund could be exposed to risks if the
counterparties to the contracts are unable to meet the terms of their contracts.
The following forward currency contracts were outstanding at October 31, 1997:
The Global Fixed Income Portfolio
<TABLE>
<CAPTION>
Unrealized
Contract Settlement Appreciation
Contracts to Receive In Exchange For Value Date (Depreciation)
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
7,266,982 Deutsche Marks $4,205,429 $4,214,228 11/3/97 $8,799
17,633,700 Dutch Guilders 9,052,207 $9,050,466 11/3/97 (1,741)
------
$7,058
==============================================================================================
</TABLE>
7. Concentrations of Credit Risk
Some countries in which the Fund may invest require governmental approval for
the repatriation of investment income, capital or the proceeds of sales of
securities by foreign investors. In addition, if there is a deterioration in a
country's balance of payments or for other reasons, a country may impose
temporary restrictions on foreign capital remittances abroad.
The securities exchanges of certain foreign markets are substantially smaller,
less liquid and more volatile than the major securities markets in the United
States. Consequently, acquisition and disposition of securities by the Fund may
be inhibited. In addition, a significant proportion of the aggregate market
value of equity securities listed on the major securities exchanges in emerging
markets are held by a smaller number of investors. This may limit the number of
shares available for acquisition or disposition of the Fund.
The High-Yield Bond Portfolio may invest in high-yield fixed income securities
which carry ratings of BB or lower by S&P and/or Ba or lower by Moody's.
Investments in these higher yielding securities may be accompanied by a greater
degree of credit risk than higher rated securities. Additionally, lower rated
securities may be more susceptible to adverse economic and competitive industry
conditions than investment grade securities.
The Fixed Income Portfolio may invest 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 any has been paid.
Each Series may invest up to 10% of its total assets in illiquid securities
which may include securities with contractual restrictions on resale, securities
exempt from registration under Rule 144A of the Securities Act of 1933, as
amended, and other securities which may not be readily marketable. The relative
illiquidity of some of these securities may adversely affect the Fund's ability
to dispose of such securities in a timely manner and at a fair price when it is
necessary to liquidate such securities.
72 1997 Annual Report o Delaware Pooled Trust
<PAGE>
8. Securities Lending
Securities on loan are required at all times to be secured by collateral at
least equal to 102% of the market value of securities issued in the U.S. and
105% of the market value of securities issued outside of the U.S. However, in
the event of default or bankruptcy by the other party to the agreement,
realization and/or retention of the collateral may be subject to legal
proceedings. In the event that the borrower fails to return loaned securities,
and cash collateral being maintained by the borrower is insufficient to cover
the value of loaned securities and provided such collateral insufficiency is not
the result of investment losses, the lending agent has agreed to pay the amount
of the shortfall to the Fund or, at the option of the lending agent, replace the
loaned securities. The market value of securities on loan to brokers and the
related cash collateral received at October 31, 1997 for each Portfolio was as
follows:
Market Value of Cash
Securities on Loan Collateral
- ------------------------------------------------------------------------------
The International Equity Portfolio $52,927,260 $55,106,600
9. Subsequent Event
Subsequent to October 31, 1997, the existing class of the Real Estate
Investment Trust Portfolio converted into REIT Fund A Class, and four
additional classes of shares were offered: REIT Fund B Class, REIT Fund C
Class, REIT Fund Institutional Class, and the Real Estate Investment Trust
Portfolio Class, and The Real Estate Investment Trust Portfolio II commenced
operations.
================================================================================
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 Delaware
Pooled Trust, Inc. (comprising, respectively, 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 Labor Select International Equity Portfolio, The Emerging Markets
Portfolio, The Global Equity Portfolio, The Global Fixed Income Portfolio, and
the International Fixed Income Portfolio) (the "Fund") as of October 31, 1997,
and the related statements of operations, the statements of changes in net
assets and the financial highlights for each of the periods indicated therein.
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 and financial highlights. Our procedures included confirmation of
securities owned as of October 31, 1997, by correspondence with the Fund's
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
each of the respective portfolios constituting Delaware Pooled Trust, Inc. at
October 31, 1997, the results of their operations, and the changes in their net
assets and their financial highlights for each of the periods indicated therein,
in conformity with generally accepted accounting principles.
Philadelphia, Pennsylvania
December 1, 1997
Delaware Pooled Trust o 1997 Annual Report 73
<PAGE>
Delaware Pooled Trust, Inc.
Fund Officers and Portfolio Managers
Wayne A. Stork
Chairman
David G. Tilles
Managing Director and Chief Investment Officer
Delaware International Advisers Ltd.
Robert Akester
Senior Portfolio Manager
Vice President and Senior Portfolio Manager
Robert L. Arnold
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 E. Deming
Vice President and Senior Portfolio Manager
Elizabeth A. Desmond
Director 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)
Paul A. Matlack
Vice President and Senior Portfolio Manager
Gerald T. Nichols
Vice President and Senior Portfolio Manager
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
<PAGE>
Custodians
The Chase Manhattan Bank
4 Metrotech Center
Brooklyn, New York 11245
(custodian for The Real Estate Investment Trust,
The High-Yield Bond, The International Equity,
The Labor Select International Equity, The Emerging Markets, The Global
Equity, The Global Fixed Income, and The International 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 Manager
Delaware Management Company, Inc.
One Commerce Square
Philadelphia, Pennsylvania 19103
Investment Advisers
Delaware Investment Advisers
One Commerce Square
Philadelphia, Pennsylvania 19103
Delaware International Advisers Ltd.
Third Floor
80 Cheapside
London, England EC2V 6EE
Subadvisers
Lincoln Investment Management, Inc.
Fort Wayne, Indiana
This report was prepared for 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
