<PAGE>
DELAWARE
POOLED
TRUST
--------
1998
Annual Report
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U.S. Equities The Large-Cap Value Equity Portfolio
The Growth and Income Portfolio
The Mid-Cap Growth Equity Portfolio
The Small/Mid-Cap Value Equity Portfolio
The Small-Cap Growth Equity Portfolio
The Real Estate Investment Trust Portfolio II
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U.S. Fixed Income The Intermediate Fixed Income Portfolio
The Aggregate Fixed Income Portfolio
The High-Yield Bond Portfolio
The Diversified Core Fixed Income Portfolio
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International Equities The Global Equity Portfolio
The International Equity Portfolio
The Labor Select International Equity Portfolio
The Emerging Markets Portfolio
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International Fixed Income The Global Fixed Income Portfolio
The International Fixed Income Portfolio
<PAGE>
CONTENTS
2 Total Returns
4 Portfolio Objectives
6 The Large-Cap Value Equity Portfolio Review
8 The Growth and Income Portfolio Review
10 The Mid-Cap Growth Equity Portfolio Review
12 The Small/Mid-Cap Value Equity Portfolio Review
14 The Small-Cap Growth Equity Portfolio Review
16 The Real Estate Investment Trust Portfolio II Review
18 The Intermediate Fixed Income Portfolio Review
20 The Aggregate Fixed Income Portfolio Review
22 The High-Yield Bond Portfolio Review
24 The Diversified Core Fixed Income Portfolio Review
26 The Global Equity Portfolio Review
28 The International Equity Portfolio Review
30 The Labor Select International Equity Portfolio Review
32 The Emerging Markets Portfolio Review
34 The Global Fixed Income Portfolio Review
36 The International Fixed Income Portfolio Review
38 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 $42 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 Large-Cap Value Equity,
The Growth and Income, The Mid-Cap Growth Equity, The Small/Mid-Cap Value
Equity, The Small-Cap Growth Equity, The Real Estate Investment Trust II, The
Intermediate Fixed Income, The Aggregate Fixed Income, The High-Yield Bond, and
The Diversified Core Fixed Income Portfolios. Delaware International Advisers
Ltd., a London-based affiliate of Delaware Management Company, serves as
investment adviser for The Global Equity, The International Equity, The Labor
Select International Equity, The Emerging Markets, 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.
1998 ANNUAL REPORT o DELAWARE POOLED TRUST 1
<PAGE>
Portfolio Returns
Periods ending October 31, 1998
<TABLE>
<CAPTION>
One Three Five Since
Average Annual Total Return* Year Years Years Inception+
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------
The Large-Cap Value Equity Portfolio
(formerly known as The Defensive Equity Portfolio) 13.50% 21.55% 18.36% 18.39%
S&P 500 Composite Stock Price Index 21.99 25.95 21.26 18.56
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The Growth and Income Portfolio** -- -- -- 5.53
Lipper Growth & Income Fund Average*** -- -- -- --
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The Mid-Cap Growth Equity Portfolio
(formerly known as The Aggressive Growth Portfolio) 1.47 10.59 10.17 9.39
Russell 2000 Index (11.84) 9.96 9.42 10.82
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The Small/Mid-Cap Value Equity Portfolio** -- -- -- (9.18)
Russell 2500 Value Index -- -- -- (7.84)
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The Small-Cap Growth Equity Portfolio** -- -- -- 10.59
Russell 2000 Growth Index*** -- -- -- --
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The Real Estate Investment Trust Portfolio II** -- -- -- (12.27)
NAREIT Equity REIT Index -- -- -- (12.79)
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The Intermediate Fixed Income Portfolio
(formerly known as The Fixed Income Portfolio) 7.06 -- -- 6.92
Lehman Brothers Government/Corporate
Intermediate Bond Index 9.12 -- -- 7.61
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The Aggregate Fixed Income Portfolio** -- -- -- 7.41
Lehman Brothers Aggregate Bond Index -- -- -- 7.75
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The High-Yield Bond Portfolio 0.30 -- -- 9.16
Salomon Brothers High-Yield Cash Pay Index 1.59 -- -- 6.95
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The Diversified Core Fixed Income Portfolio** -- -- -- 7.18
Lehman Brothers Aggregate Bond Index -- -- -- 7.75
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The Global Equity Portfolio 8.31 -- -- 3.30
Morgan Stanley Capital International
World Stock Index (net) 15.26 -- -- 15.26
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The International Equity Portfolio 4.96 11.30 9.85 10.83
Morgan Stanley Capital International
EAFE Stock Index (net) 9.65 8.22 6.81 8.08
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</TABLE>
2 DELAWARE POOLED TRUST o 1998 ANNUAL REPORT
<PAGE>
<TABLE>
<CAPTION>
One Three Five Since
Average Annual Total Return* Year Years Years Inception+
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------
The Labor Select International Equity Portfolio 6.18% -- -- 13.91%
Morgan Stanley Capital International
EAFE Stock Index (net) 9.65 -- -- 6.18
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The Emerging Markets Portfolio (35.30) -- -- (28.52)
Morgan Stanley Capital International
Emerging Markets Free Equity Index (30.99) -- -- (29.88)
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The Global Fixed Income Portfolio 6.28 9.31% 9.37% 10.81
Salomon Brothers World Government
Bond Index 12.54 6.76 7.75 8.87
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The International Fixed Income Portfolio 5.96 -- -- 8.46
Salomon Brothers Non-U.S. World
Government Bond Index 12.81 -- -- 11.52
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</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 or Delaware International Advisers Ltd. has, as relevant,
voluntarily waived its fee and reimbursed the Delaware Pooled Trust
Portfolios for certain amounts that annual operating expenses (excluding
taxes, interest, brokerage commissions, and extraordinary expenses) exceeded
average net assets. In the absence of 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. Such short-term returns may not be meaningful as
they do not represent a longer-term perspective on the portfolio's
performance.
*** Index performance information not available for the brief time period during
which the portfolio has been active. See the "Growth of $10,000" charts on
pages 8 and 14 for comparative index performance.
+ The inception dates for each Delaware Pooled Trust Portfolio are as follows:
Large-Cap Value Equity, February 3, 1992; Growth and Income, September 15,
1998; Mid-Cap Growth Equity, February 27, 1992; Small/Mid-Cap Value Equity,
December 29, 1997; Small-Cap Growth Equity, September 15, 1998; Real Estate
Investment Trust II, November 4, 1997, Intermediate Fixed Income, March 12,
1996; Aggregate Fixed Income, December 29, 1997, High-Yield Bond, December
2, 1996; Diversified Core Fixed Income, December 29, 1997, Global Equity,
October 15, 1997; International Equity, February 4, 1992; Labor Select
International Equity, December 19, 1995; Emerging Markets, April 14, 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.
1998 ANNUAL REPORT o DELAWARE POOLED TRUST 3
<PAGE>
Portfolio Objectives
The Large-Cap Value Equity Portfolio (formerly known as "The Defensive Equity
Portfolio") seeks maximum long-term total return, consistent with reasonable
risk, through investments in stocks that, at the time of purchase, have dividend
yields above the current yield of the Standard & Poor's 500 Stock Index and
that, in the opinion of Delaware Investment Advisers, offer capital gains
potential as well.
The Growth and Income Portfolio seeks to realize capital appreciation and
income. The Portfolio seeks to achieve these objectives by investing primarily
in income-producing common stocks, with a focus on common stocks that Delaware
believes have potential for above-average dividend increases over time.
The Mid-Cap Growth Equity Portfolio (formerly known as "The Aggressive Growth
Portfolio") seeks maximum long-term capital growth by investing in stocks of
smaller and medium-sized companies that, in the opinion of Delaware Investment
Advisers, offer, at the time of purchase, significant long-term growth
potential.
The Small/Mid-Cap Value Equity Portfolio seeks maximum long-term total return
through investments in stocks that, at the time of purchase, are dividend paying
and generally represent the smallest 30% in terms of market capitalization of
U.S. stocks listed on a national exchange or NASDAQ and that, in the opinion of
Delaware Investment Advisers, offer the potential for capital gains as well.
The Small-Cap Growth Equity Portfolio seeks to realize long-term capital growth.
The Portfolio seeks to achieve its objective by investing primarily in equity
securities of companies which Delaware believes have potential for high earnings
growth and which generally represent the smallest 25% in terms of market
capitalization of U.S. equity securities listed on a national securities
exchange or NASDAQ.
The Real Estate Investment Trust Portfolio II seeks to achieve maximum long-term
total return, with capital appreciation as a secondary objective. The Portfolio
seeks to invest primarily in stocks of real-estate investment trusts.
The Intermediate Fixed Income Portfolio (formerly known as "The Fixed Income
Portfolio") seeks to achieve a maximum long-term total return, consistent with
reasonable risk, by investing in diversified investment-grade bonds, including
U.S. government, mortgage-backed, corporate, and other fixed-income securities.
The Aggregate Fixed Income Portfolio seeks to achieve maximum long-term total
return, consistent with reasonable risk, by investing in high-quality debt
securities, including U.S. government securities, mortgage-backed securities,
corporate bonds, and other fixed-income securities.
The High-Yield Bond Portfolio seeks high total return relative to other
fixed-income investments. The Portfolio seeks to invest primarily in bonds rated
B- or higher by Standard & Poor's Rating Group or B3 or higher by Moody's
Investors Service, Inc.
The Diversified Core Fixed Income Portfolio seeks maximum long-term total return
by using a multi-sector investment approach, investing assets principally in
investment-grade, high-yield, and foreign bonds.
The Global Equity Portfolio seeks long-term growth of capital without undue risk
to principal by investing in global equity securities that provide the potential
for capital appreciation and income.
4 DELAWARE POOLED TRUST o 1998 ANNUAL REPORT
<PAGE>
The International Equity Portfolio seeks to achieve maximum long-term total
return by investing primarily in stocks of companies that are organized, have a
majority of their assets, or derive most of their operating income outside the
United States. The Portfolio seeks to invest in stocks that, in the opinion of
Delaware International, are undervalued at the time of purchase, based on
rigorous fundamental analysis conducted by the investment adviser.
The Labor Select International Equity Portfolio seeks to achieve maximum
long-term total return by investing primarily in stocks of companies that are
organized, have a majority of their assets, or derive most of their operating
income outside the United States. The Portfolio seeks to invest in stocks that,
in the opinion of Delaware International, are undervalued at the time of
purchase based on rigorous fundamental analysis conducted by the investment
adviser, 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
by investing primarily in stocks of issuers located or operating in emerging
countries.
The Global Fixed Income Portfolio seeks to achieve current income and the
potential for capital appreciation, consistent with the preservation of
investors' principal, by investing primarily in fixed-income securities. Issuers
of these securities will be organized, have a majority of their assets, or
derive most of their operating income in at least three different countries, one
of which may be the United States.
The International Fixed Income Portfolio seeks to achieve current income and the
potential for capital appreciation, consistent with the preservation of
investors' principal, by investing primarily in fixed-income securities of
international (non-U.S.) markets. Issuers of these securities will be organized,
have a majority of their assets, or derive most of their operating income in at
least three different countries outside the U.S.
1998 ANNUAL REPORT o DELAWARE POOLED TRUST 5
<PAGE>
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Large-Cap Value Equity:
Double-Digit Gains, Despite Overseas Woes
The U.S. stock market, which started 1998 with a bang, ended the fiscal year
with a whimper as economic problems in Russia and the emerging market nations
finally took their toll. While U.S. companies with business in those areas
reported weak earnings, it wasn't enough to spoil the fun. The Large-Cap Value
Equity Portfolio (formerly known as The Defensive Equity Portfolio) returned
13.50% for the year ending October 31, versus the S&P 500's 21.99% return for
the same period.
The first half of the fiscal year saw a surprise bull rally, and the Portfolio
charged ahead with a return of 18.57%. A strong economy, low inflation and high
consumer confidence were behind the market's euphoria as jubilant investors put
worries about the Asian debt crisis on the back burner. However, the celebration
ended over the summer, when U.S. companies began feeling the effects of the
collapse of the Russian ruble and economic troubles in Southeast Asia and Latin
America. In the last quarter of the fiscal year, investors began to sell off
their large-cap holdings in search of shelter from the global volatility.
Looking ahead, we do not believe the U.S. will experience a recession, as many
had predicted, and are forecasting a rebound in corporate profits in 1999. We
plan to continue overweighting the drug and telecommunications sectors. In
addition, we hope to capitalize on the industries that were oversold in the last
quarter of the fiscal year; for example, the capital goods sector, which was
particularly hard hit.
<TABLE>
<CAPTION>
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<S> <C>
The Large-Cap Value Equity Portfolio has Average Annual Total Return
generally kept pace with, if not surpassed, the Periods ending October 31, 1998
broad stock market since the Portfolio's inception --------------------------------------
One Year Five Years Since Inception
13.50% 18.36% 18.39%
--------------------------------------
</TABLE>
Growth of $10,000*
1. Large Cap Value Equity
S&P 500 Index The Large-Cap Value Equity Portfolio
2/92 $10,118 2/3/92 $10,000
6/92 $10,103 6/92 $10,550
9/92 $10,423 9/92 $10,741
12/92 $10,953 12/92 $11,355
3/93 $11,432 3/93 $12,255
6/93 $11,480 6/93 $12,527
9/93 $11,780 9/93 $13,233
12/93 $12,057 12/93 $13,585
3/94 $11,599 3/94 $13,321
6/94 $11,638 6/94 $13,817
9/94 $12,210 9/94 $14,381
12/94 $12,207 12/94 $14,026
3/95 $13,401 3/95 $15,425
6/95 $14,676 6/95 $16,486
9/95 $15,841 9/95 $17,776
12/95 $16,793 12/95 $18,712
3/96 $17,694 3/96 $19,799
6/96 $18,487 6/96 $20,166
9/96 $19,059 9/96 $21,021
12/96 $20,649 12/96 $22,353
3/97 $21,202 3/97 $23,090
6/97 $24,896 6/97 $26,534
9/97 $26,763 9/97 $28,860
10/97 $25,869 10/97 $27,509
12/97 $27,531 12/97 $29,514
3/98 $31,371 3/98 $33,177
6/98 $32,408 6/98 $32,041
9/98 $29,185 9/98 $29,343
10/98 $31,558 10/98 $31,222
* 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.
6 DELAWARE POOLED TRUST o 1998 ANNUAL REPORT
<PAGE>
PORTFOLIO MANAGER
George E. Deming (photo of George E. Deming)
o Has managed the Portfolio since its inception
o Joined Delaware in 1978...previously at White, Weld & Co.
o Thirty years of investment experience
o Earned bachelor's degree at the University of Vermont
o Earned master's degree in international affairs at the University of
Pennsylvania's Wharton School
o Based in Philadelphia
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Portfolio Profile
October 31, 1998
Total net assets $117.9 million
Inception Date February 3, 1992
Asset composition (based on total net assets)
Common stocks 95.28%
Cash equivalents and other net assets 4.72%
Number of holdings 57
Top 10 holdings
1. McGraw-Hill
2. Pharmacia & Upjohn
3. Bestfoods
4. Kimberly-Clark
5. Pitney Bowes
6. Baxter International
7. AT&T
8. Ford Motor
9. May Department Stores
10. GTE
Industry composition
Banking/finance/insurance 19.05%
Telecommunications 11.95%
Energy 9.93%
Food/beverage/tobacco 8.43%
Healthcare/pharmaceuticals 8.11%
Chemicals 6.09%
Automobiles/auto parts 5.57%
Electronics/electrical 4.82%
Retail 4.33%
Computers/technology 4.04%
Paper/forest products 3.97%
Cable/media/publishing 3.07%
Metals/mining 2.65%
Transportation/shipping 1.81%
Environmental services 1.46%
Cash and other net assets 4.72%
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1998 ANNUAL REPORT o DELAWARE POOLED TRUST 7
<PAGE>
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Growth and Income:
A Strong Start
The Growth and Income Portfolio got off to a strong start during its first six
weeks of operation. The Portfolio delivered a total return of 5.53% from its
inception on September 15, 1998, through the close of our reporting period on
October 31, 1998. Good stock selection in the consumer growth area, especially
in October, accounted for most of the Portfolio's gain. Keeping in mind the
extremely short reporting period, such performance may not be representative of
longer-term results.
October was the best single month of performance in the broad stock market since
the late 1980s. In a surprise move that caught investors flatfooted, the Federal
Reserve Board's Open Market Committee reduced its target for short-term interest
rates by 25 basis points (0.25%) to 5.00% on October 15. The effect was
galvanic. Growth and Income posted an 8.9% gain for the month, outperforming the
8.1% return of the unmanaged S&P 500 Index.
The Growth and Income Portfolio invests primarily in dividend-paying companies
that we believe have the potential to provide above-average dividend growth over
time. The Portfolio's asset concentration has now reached our desired
target--the top 10 holdings represent more than 35% of net assets, and the top
20 holdings account for over 55% of net assets.
Looking ahead, we will continue to focus on stocks that we believe may have the
potential for 10% or more earnings per share growth. These stocks should appear
more attractive relative to the broad market, where profit growth is expected to
be flat over the next 12 months.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
<S> <C>
In its first six weeks of operation, The Growth Total Return
and Income Portfolio posted solid gains despite For the period September 15, 1998 to October 31, 1998
volatile markets ------------------------------------------------------
5.53%
------------------------------------------------------
</TABLE>
Growth of $10,000*
Lipper Growth & The Growth and
Income Fund Average Income Portfolio
8/98 $10,000 9/15/98 $10,000
9/98 $10,529 9/21/98 $10,000
10/98 $11,292 9/28/98 $10,000
10/ 5/98 $ 9,871
10/12/98 $10,000
10/19/98 $ 9,400
10/26/98 $10,271
10/31/98 $10,553
* 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 Lipper Growth & Income Fund Average is an unmanaged index and a
theoretical measure of stock-market performance rather than an actual available
investment.
8 DELAWARE POOLED TRUST o 1998 ANNUAL REPORT
<PAGE>
Portfolio Manager
George H. Burwell (photo of George H. Burwell)
o Has managed the Portfolio since its inception
o Joined Delaware in 1992
o Previously a portfolio manager for Midlantic Bank and a Security Analyst with
both Balis & Zorn and First Fidelity Bank
o Earned a bachelor's degree from the University of Virginia, where he majored
in political science
o CFA charterholder
o Based in Philadelphia
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Portfolio Profile
October 31, 1998
Total net assets $2.1 million
Inception Date September 15, 1998
Asset composition (based on total net assets)
Common stocks 97.84%
Convertible preferred stocks 0.35%
Warrants 0.94%
Cash equivalents and other net assets 0.87%
Number of holdings 62
Top 10 holdings
1. Federal Home Loan
2. Rite Aid
3. Equifax
4. Hewlett-Packard
5. Tyco International
6. Masco
7. Ecolab
8. American Home Products
9. Service International
10. Stewart Enterprises
Industry composition
Banking/finance/insurance 18.94%
Miscellaneous 14.09%
Retail 8.36%
Food/beverage/tobacco 7.85%
Healthcare/pharmaceuticals 7.62%
Chemicals 6.09%
Electronics/electrical 5.54%
Computers/technology 5.43%
Textiles/apparel/furniture 5.03%
Telecommunications 4.71%
Buildings/materials 4.49%
Energy 2.98%
Real estate 2.02%
Automobiles/auto parts 1.70%
Utilities 1.54%
Cable/media/publishing 0.93%
Aerospace/defense 0.52%
Convertible preferred stock 1.29%
Cash and other net assets 0.87%
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1998 ANNUAL REPORT o DELAWARE POOLED TRUST 9
<PAGE>
- --------------------------------------------------------------------------------
Mid-Cap Growth Equity:
A Buoyant Performance Amid A Market Underwater
The Mid-Cap Growth Equity Portfolio, formerly known as The Aggressive Growth
Portfolio, posted a return of 1.47% for the year ending October 31. The
Portfolio, which returned a strong 14.12% for the first half of the fiscal year,
witnessed more tempered gains in the final quarter in the face of global
economic pressures and volatility. In stark contrast, the Russell 2000 Index
posted a (11.84)% return. The Portfolio's substantial outperformance stemmed
from good stock selection. Growth stocks, which were the high-fliers for most of
the year, underwent a substantial correction in the final quarter of the
reporting period. Despite this recent correction in growth stocks in general,
the growth orientation of our Portfolio did not deter it from exceeding its
benchmark throughout the year--a further testament to deft stock selection, in
our opinion.
At the beginning of the year, we anticipated the following: (1) Asian turmoil
would start to pressure earnings, especially in the second half of 1998; (2) the
strength of the U.S. dollar would put further pressure on earnings; (3) consumer
spending would be strong; and (4) a very benign interest rate environment would
prevail.
To position for these macro drivers, we have been looking for companies with
predictable U.S.-based earnings. Therefore, we have focused less on basic
industry, less on healthcare and less on energy. We have stressed more
consumer-oriented companies, especially lifestyle retailers, interest-sensitive
stocks and technology.
Looking ahead, we continue to look for companies that, in our opinion, aren't
likely to disappoint on the earnings front. We intend to continue overweighting
consumer stocks and underweighting the basic-industry sector, a strategy that
contributed greatly to our positive performance in the midst of a market that
has lost over 10% of its value in the 12 months ended October 31.
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
<S> <C>
The Mid-Cap Growth Equity Portfolio has kept Average Annual Total Return
pace with the Russell 2000 during a time when Periods ending October 31, 1998
small growth stocks in general have underperformed -----------------------------------------------
the broad Small-Cap Market; in the last One Year Five Years Since Inception
year it has handily beaten the Russell 2000 1.47% 10.17% 9.39%
- ----------------------------------------------------------------------------------------------------------
</TABLE>
Growth of $10,000*
Russell 2000 Index The Mid-Cap Growth Equity Portfolio
2/92 $10,000 2/27/92 $10,000
6/92 $ 9,002 6/92 $ 8,400
9/92 $ 9,260 9/92 $ 8,700
12/92 $10,642 12/92 $10,137
3/93 $11,097 3/93 $ 9,716
6/93 $11,339 6/93 $10,147
9/93 $12,330 9/93 $11,069
12/93 $12,654 12/93 $11,379
3/94 $12,318 3/94 $11,267
6/94 $11,838 6/94 $10,418
9/94 $12,660 9/94 $11,338
12/94 $12,423 12/94 $10,815
3/95 $12,996 3/95 $11,830
6/95 $14,214 6/95 $12,438
9/95 $15,618 9/95 $13,683
12/95 $15,957 12/95 $14,032
3/96 $16,771 3/96 $15,265
6/96 $17,610 6/96 $16,256
9/96 $17,669 9/96 $16,840
12/96 $18,589 12/96 $16,333
3/97 $17,627 3/97 $15,008
6/97 $20,485 6/97 $16,937
9/97 $23,534 9/97 $18,721
10/97 $22,500 10/97 $17,947
12/97 $22,745 12/97 $17,698
3/98 $25,033 3/98 $20,285
6/98 $23,866 6/98 $20,627
9/98 $19,058 9/98 $17,502
10/98 $19,835 10/98 $18,210
* 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.
10 DELAWARE POOLED TRUST o 1998 ANNUAL REPORT
<PAGE>
Portfolio Manager
Gerald S. Frey (photo of Gerald S. Frey)
o Has managed the Portfolio since 1996
o Previous position: senior director at Morgan Grenfell Capital Management
o Nearly 20 years of investment management experience
o Earned bachelor's degree from Bloomsburg University
o Earned MBA from Wilkes College n Based in Philadelphia
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Portfolio Profile
October 31, 1998
Total net assets $4.9 million
Inception Date February 27, 1992
Asset composition (based on total net assets)
Common stocks 96.09%
Cash equivalents and other net assets 3.91%
Number of holdings 57
Top 10 holdings
1. Chancellor Media Class A
2. Snyder Communications
3. Bed Bath & Beyond
4. Staples
5. Finova Group
6. Health Management Associates Class A
7. Outback Steakhouse
8. Gemstar International Group Limited
9. Henry Schein
10. Clear Channel Communications
Industry composition
Computers/technology 20.86%
Banking/finance/insurance 14.28%
Cable/media/publishing 12.57%
Telecommunications 12.06%
Retail 10.78%
Leisure/lodging/entertainment 5.76%
Consumer products 5.23%
Electronics/electrical 4.73%
Healthcare/pharmaceuticals 3.75%
Miscellaneous 3.39%
Environmental services 1.54%
Textiles/apparel/furniture 1.03%
Food/beverage/tobacco 0.11%
Cash and other net assets 3.91%
1998 ANNUAL REPORT - DELAWARE POOLED TRUST 11
<PAGE>
Small/Mid-Cap Value Equity:
Rough Times For Small-Cap Value Investors
The stock market correction hit the small- and mid-cap equities much harder than
their large-cap counterparts, as investors continued to believe the large-cap
sector would be a safer bet. The effects of the Asian financial crisis were felt
throughout most sectors; in particular, the capital goods and basic materials
segments.
The Small/Mid-Cap Value Equity Portfolio, less than a year old, returned (9.18)%
for the period December 29, 1997 to October 31, 1998. In comparison, the Russell
2500 Value Index also suffered during the period, posting a (7.84)% return.
Given the bear market surrounding small- and mid-cap stocks at the end of this
period, we made few strategic maneuvers. Additionally, we focused on high
quality, low P/E financial and utility equities to help reduce the Portfolio's
downside risk.
Moving ahead, however, we have decreased our reliance on the housing sector
given its strong relative performance at the end of this fiscal year.
Additionally, we have selectively added to our energy and commodity-related
groups, which are valued more attractively. Given the current market valuations,
we continue to find ample opportunities to add quality companies to the
Portfolio at attractive prices.
- --------------------------------------------------------------------------------
In an extremely volatile small- and mid-cap market, the Portfolio has kept pace
with its benchmark index
Total Return
For the period December 29, 1997 to October 31, 1998
- ----------------------------------------------------
(9.18)%
- ----------------------------------------------------
Growth of $10,000*
Russell 2500 The Small/Mid-Cap
Value Index Value Equity Portfolio
12/97 $10,000 12/97 $10,000
12/97 $10,000 12/97 $10,060
1/98 $ 9,829 1/98 $ 9,953
2/98 $10,439 2/98 $10,635
3/98 $10,954 3/98 $11,071
4/98 $10,948 4/98 $10,988
5/98 $10,602 5/98 $10,588
6/98 $10,562 6/98 $10,412
7/98 $ 9,887 7/98 $ 9,776
8/98 $ 8,335 8/98 $ 8,282
9/98 $ 8,822 9/98 $ 8,824
10/98 $ 9,216 10/98 $ 9,082
December 29, 1997*
January 1998*
March 1998*
May 1998*
July 1998*
September 1998*
October 31, 1998*
* 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 2500 Value Index is an unmanaged index and a theoretical
measure of stock-market performance rather than an actual available investment.
12 Delaware Pooled Trust o 1998 Annual Report
<PAGE>
PORTFOLIO MANAGER
Francis X. Morris
o Has managed the Portfolio since (photo of Francis X. Morris)
its inception in 1997
o Joined Delaware in 1997
o Previously served as Vice President
and Director of Equity Research
at PNC Asset Management
o Earned bachelor's degree at Providence College
o Earned MBA degree at Widener University
o President of the Financial Analysts Society
of Philadelphia
o Member of the Association for Investment
Management and Research and the National
Association of Petroleum Investment Analysts
o Based in Philadelphia
- -------------------------------------------------
Portfolio Profile
October 31, 1998
Total net assets $2.7 million
Inception Date December 29, 1997
Asset composition (based on total net assets) Common stocks 96.98% Cash
equivalents and other net assets 3.02%
Number of holdings 72
Top 10 holdings
1. Stride Rite
2. Viad
3. Stewart Enterprises
4. Koger Equity
5. Armstrong World Industries
6. Prentiss Properties Trust
7. USEC
8. Equity Office Properties Trust
9. Noble Affiliates
10. Mercantile Bankshares
Industry composition
Banking/finance/insurance 19.98%
Real estate 12.28%
Energy 10.46%
Buildings/materials 8.31%
Utilities 6.06%
Chemicals 5.88%
Textiles/apparel/furniture 4.67%
Healthcare/pharmaceuticals 4.45%
Food/beverage/tobacco 4.17%
Industrial machinery 3.96%
Retail 3.28%
Metals/mining 3.23%
Automobiles/automotive parts 2.82%
Leisure/lodging/entertainment 2.82%
Transportation/shipping 2.00%
Paper/forest products 1.32%
Electronics/electrical equipment 1.29%
Cash and other net assets 3.02%
1998 Annual Report o Delaware Pooled Trust 13
<PAGE>
Small-Cap Growth Equity:
Robust Beginnings
The Small-Cap Growth Equity Portfolio made great strides during its first six
weeks of operation. From its inception on September 15, 1998, through the end of
our reporting period on October 31, 1998, Small-Cap Growth Equity provided a
total return of 10.59%. Much of this gain came in the last three weeks of
October, as stocks began to recover earlier losses. Small-Cap Growth Equity
rebounded more than 35% from early October lows, compensating for a 21% decline
in net asset value during the first six trading days of the month. Keeping in
mind the extremely short reporting period, such performance may not be
representative of longer-term results.
October was the best single month of performance in the broad stock market since
the late 1980s. In a surprise move that caught investors flatfooted, the Federal
Reserve Board's Open Market Committee reduced its target for short-term interest
rates by 25 basis points (0.25%) to 5.00% on October 15. The effect was
galvanic. Small-Cap Growth Equity posted a 7.68% gain for the month,
outperforming the 5.22% return of the unmanaged Russell 2000 Growth Index.
Looking ahead, we believe the stocks we hold present good earnings potential for
1999. Even with the recent recovery, small stocks are near historic P/E lows
compared to large stocks. We see this as a sign of small company stocks' capital
appreciation potential. We are excited about such strong earnings prospects as
they may apply to Small-Cap Growth Equity Portfolio's long-term performance.
- --------------------------------------------------------------------------------
The Small-Cap Growth Equity Portfolio posted
a double-digit gain in the first month-and-a-half
of operation
Total Return
For the period September 15, 1998 to October 31, 1998
-----------------------------------------------------
10.59%
-----------------------------------------------------
Growth of $10,000*
Russell 2000 The Small-Cap Growth
Growth Index Equity Portfolio
8/98 $10,000 9/15/98 $10,000
9/98 $11,013 9/18/98 $10,024
10/98 $11,588 9/25/98 $10,306
10/ 9/98 $ 9,212
10/23/98 $10,600
10/31/98 $11,059
August 31*
September 11*
September 30*
October 9*
October 31*
* 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 Growth Index is an unmanaged index and a theoretical
measure of stock-market performance rather than an actual available investment.
14 Delaware Pooled Trust o 1998 Annual Report
<PAGE>
PORTFOLIO MANAGER
Gerald S. Frey
[] Has managed the Portfolio
since its inception (photo of Gerald S. Frey)
[] 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
- -------------------------------------------------
Portfolio Profile
October 31, 1998
Total net assets $3.3 million
Inception Date September 15, 1998
Asset composition (based on total net assets) Common stocks 80.50% Cash
equivalents and other net assets 19.50%
Number of holdings 52
Top 10 holdings
1. Star Telecommunications
2. Consolidated Graphics
3. Bindview Development
4. CNET
5. Linens `n' Things
6. Papa John's International
7. Hyperion Solutions
8. Network Appliance
9. Ambac Financial Group
10. GeoTel Communications
Industry composition
Computers/technology 23.87%
Telecommunications 15.35%
Cable/media/publishing 8.85%
Banking/finance/insurance 8.84%
Electronics/electrical 7.23%
Retail 6.92%
Leisure/lodging/entertainment 4.86%
Miscellaneous 2.54%
Healthcare/pharmaceuticals 1.20%
Automobiles/auto parts 0.47%
Real estate 0.37%
Cash and other net assets 19.50%
- -------------------------------------------------
1998 Annual Report o Delaware Pooled Trust 15
<PAGE>
- --------------------------------------------------------------------------------
Real Estate Investment Trust II:
Credit Crunch Takes Its Toll
What a difference a fiscal year makes. The benchmark NAREIT Index, which soared
32.77% in the 12 months ended October 31, 1997, plunged well into negative
territory in the 1998 fiscal year. For its part, our REIT II Portfolio--which
has been open for business for nearly a full year--recorded a total return of
(12.27)% for the period November 4, 1997 to October 31, 1998. That exceeded the
NAREIT Index's return by half of a percentage point.
The abrupt about-face--which began with market uncertainty, a slowdown in
acquisitions, and negative flow of funds--was mainly due to a credit crunch in
the debt and equity markets in the last several months. This crunch was caused
by losses by several large hedge funds along with currency devaluations and debt
defaults among emerging market nations. The burgeoning credit problems of
Russia, Southeast Asia and hedge funds have caused lenders to halt issuances of
capital, causing all equities, including REITs, to suffer. On a positive note,
we believe acquisitions in the industry have slowed and commercial real estate
prices have fallen by 10%-25% across all sectors. In addition, the lack of
capital has halted new construction, which in turn has helped raise rental
rates.
Looking ahead, we intend to overweight the retail sector, which relies less on
acquisitions than other sectors and is more defensive with its longer leases. We
currently underweight the hotel sector as these stocks are more sensitive to an
economic slowdown. We also believe the office sector continues to have solid
fundamentals. A favorable balance of supply and demand, softer acquisition
prices and strong growth we believe make this the sector with the best
risk/return scenario going into the next year.
- --------------------------------------------------------------------------------
At fiscal year's end, The REIT II Portfolio has beaten its benchmark index
despite volatility in in the real-estate and small-cap markets
Total Return
For the period November 4, 1997 to October 31, 1998
---------------------------------------------------
(12.27)%
---------------------------------------------------
Growth of $10,000*
NAREIT Equity The Real Estate Investment
REIT Index Trust II Portfolio
10/97 $10,000 11/4/97 $10,000
12/97 $10,457 12/98 $10,012
3/98 $10,407 3/98 $10,530
6/98 $ 9,930 6/98 $ 9,999
9/98 $ 8,885 9/98 $ 9,063
12/98 $ 8,720 10/98 $ 8,773
November 4, 1997*
December 1997*
March 1998*
June 1998*
September 1998*
October 31, 1998*
* 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 II that concentrate investments in one
industry may involve greater risks than more diversified funds, including a
greater potential for volatility.
16 Delaware Pooled Trust o 1998 Annual Report
<PAGE>
PORTFOLIO MANAGERS
Steven R. Brody
[] Has served as subadviser to the (photo of Steven R. Brody)
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 (photo of Lawrence T. Kissko)
[] 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
Kimberly T. Gilliam
[] Has served as a subadviser and
property analyst to the Portfolio (photo of Kimberly T. Gilliam)
since 1998
[] Joined Lincoln in 1991...previously
a real estate representative with
Air Products & Chemicals, Inc. and a consultant
with Arthur Anderson & Co. in New York
[] Earned a bachelor's degree in accounting and an
MBA in finance and real estate from Benedict College
[] Based in Fort Wayne
Babak Zenouzi
[] Has managed the Portfolio since
its inception (photo of Babak Zenouzi)
[] 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
- ----------------------------------
Portfolio Profile
October 31, 1998
Total net assets $5.8 million
Inception Date November 4, 1997
Asset composition (based on total net assets) Common stocks 98.96% Cash
equivalents and other net assets 1.04%
Number of holdings 36
Top 10 holdings
1. Reckson Associates Realty
2. Kimco Realty
3. Apartment Investment & Management
4. Equity Office Properties Trust
5. Duke Realty Investments
6. CarrAmerica Realty
7. Simon Property Group
8. Essex Property Trust
9. Starwood Hotels & Resorts Trust
10. Alexandria R. E. Equities
Industry composition
Office/industrial REITs 38.02%
Multifamily REITs 17.90%
Retail strip-center REITs 16.14%
Hotels/diversified REITs 10.75%
Mail REITs 8.03%
Manufactured housing REITs 5.22%
Self-storage REITs 2.90%
Cash and other net assets 1.04%
- ----------------------------------
1998 Annual Report o Delaware Pooled Trust 17
<PAGE>
- --------------------------------------------------------------------------------
Intermediate Fixed Income:
Solid Gains on Conservative Stance
The Intermediate Fixed Income Portfolio (formerly known as The Fixed Income
Portfolio) returned a solid 7.06% for the fiscal year ending October 31, 1998
buoyed by a rally in the closing months of the period. That compared with a
9.12% return for the Lehman Brothers Government/Corporate Intermediate Bond
Index. Our yield-oriented style fell out of favor in the fiscal year. However,
we believe our style provides its greatest benefits over the long term. The
fixed-income market spent much of 1998 vacillating on concerns about the effects
of the Asian debt crisis. In addition, a strong U.S. economy prompted concerns
that Federal Reserve Chairman Greenspan would raise domestic interest rates, but
the Fed held off on any move that might jar Asian trading partners.
Global uncertainty continued throughout the year as the crisis expanded to
Russia and Latin America. Investors responded by selling off most securities and
buying U.S. Treasuries. The Fed ended up going the opposite direction, cutting
the federal funds rate by 0.25%, but by that time the markets had already
factored in the move.
The Intermediate Fixed Income Portfolio purchases a broad range of securities
and concentrates on issues with remaining maturities of 10 years or less. During
periods when the U.S. Treasury market rallies and financial uncertainty rises,
non-Treasury debt often underperforms. As a result, the Portfolio, which holds
more non-Treasury debt than the Lehman Government/Corporate Intermediate Bond
Index, underperformed against its benchmark. However, losses were held to a
minimum as the Portfolio is not invested in issues that would be directly
affected by Russian or Asian problems.
As a precautionary measure, we continue to monitor our corporate holdings,
upgrading from those with increasing business risk and selectively purchasing
corporates with good prospects and relatively cheap prices. The mortgage-backed
securities in the Portfolio have also underperformed (in line with that market
segment's return, although we have sold off many of the securities with
prepayment risks.
- --------------------------------------------------------------------------------
The Intermediate Fixed Income Portfolio has trailed its benchmark index over the
past fiscal year due to our emphasis on spread product, which has not performed
as well as the overall market in the current interest-rate enviroment
Average Annual Total Return
-----------------------------------------------------------------------------
Periods ending October 31, 1998
-----------------------------------------------------------------------------
One Year Since Inception
7.06% 6.92%
-----------------------------------------------------------------------------
Growth of $10,000*
Lehman Brothers Government/ The Intermediate
Corporate Intermediate Fixed Income
Bond Index Portfolio
3/96 $10,000 3/12/96 $10,000
6/96 $10,011 6/96 $10,041
9/96 $10,188 9/96 $10,230
12/96 $10,438 12/96 $10,473
3/97 $10,426 3/97 $10,471
6/97 $10,733 6/97 $10,762
9/97 $11,023 9/97 $11,046
10/97 $11,145 10/97 $11,145
12/97 $11,259 12/97 $11,229
3/98 $11,434 3/98 $11,407
6/98 $11,650 6/98 $11,609
9/98 $12,173 9/98 $11,976
10/98 $12,161 10/98 $11,932
* 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.
18 DELAWARE POOLED TRUST o 1998 ANNUAL REPORT
<PAGE>
Portfolio Manager
(Photo of Gary A. Reed)
Gary A. Reed
o Has managed the Portfolio since its inception
o Joined Delaware in 1989
o Formerly served as vice president and manager of the fixed-income department
at Irving Trust Company
o Eighteen years of investment experience
o Earned a bachelor's degree at the University of Chicago
o Earned a master's degree in economics at Columbia University
o Based in Philadelphia
Portfolio Profile
October 31, 1998
Total net assets $30.2 million
Inception Date March 12, 1996
Number of holdings 71
Top 10 holdings
1. Federal National Mortgage Association, 5.625%, 3/15/01
2. Federal National Mortgage Association, 6.00%, 10/1/28
3. Federal National Mortgage Association, 6.00%, 4/1/13
4. Federal National Mortgage Association, 7.00%, 7/1/28
5. Residential Funding Mortgage Securities Series 96-S9 A10, 7.25%, 4/25/26
6. Government National Mortgage Association, 6.50%, 12/15/23
7. U.S. Treasury Note, 6.375%, 1/15/00
8. Government National Mortgage Association, 6.50%, 1/15/24
9. Federal National Mortgage Association, 6.00%, 11/1/28
10. Philip Morris, 7.20%, 2/1/07
Asset composition (based on total net assets)
Corporate bonds 28.17%
Mortgage-backed bonds 20.96%
CMOs 17.23%
Asset-backed bonds 14.61%
U.S. Government agencies 12.97%
U.S. Treasuries 5.94%
Cash equivalents and other net assets 0.12%
1998 ANNUAL REPORT o DELAWARE POOLED TRUST 19
<PAGE>
Aggregate Fixed Income:
Capitalizing on Flight to Treasuries
The Aggregate Fixed Income Portfolio performed well for 1998, with much of the
advance coming in the final quarter of the fiscal year. The newly incepted
portfolio returned 7.41% for the period from December 29, 1997 to October 31,
1998. By comparison, the Lehman Brothers Aggregate Bond Index returned 7.75%
during the period. Global uncertainty, the expanding financial crisis in Asia,
and problems in Russia sent investors scrambling for U.S. Treasuries. As a
result, U.S. Treasury yields fell to the lowest level that we have seen in over
a generation.
Although the Federal Reserve cut the Fed Funds rate by a quarter of a percentage
point, that decision had already been factored into the market. Nevertheless,
this action underscores that financial risk in both global and domestic
economies has risen. Consequently, most corporate, financial and sovereign debt
underperformed the Treasury market.
The Aggregate Fixed Income Portfolio invests in securities that cover the full
maturity range of the fixed-income market. Many of the holdings in the Portfolio
are similar to those in The Intermediate Fixed Income Portfolio. However, the
average maturity of this Portfolio is longer, which benefited the Portfolio
during the rally in the final quarter of the fiscal year and produced strong
relative performance for the Portfolio as a whole.
Volatile global equity markets have benefited The Aggregate Fixed Income
Portfolio as investors fled stocks in droves to buy bonds over the past fiscal
year
Total Return
-----------------------------------------------------------------------------
For the period December 29, 1997 to October 31, 1998
-----------------------------------------------------------------------------
7.41%
-----------------------------------------------------------------------------
Growth of $10,000*
Lehman Brothers The Aggregate
Aggregate Fixed Income
Bond Index Portfolio
12/31/97 $10,000 12/29/97 $10,000
12/31/97 $10,000 12/29/97 $10,000
1/98 $10,128 1/98 $10,129
2/98 $10,120 2/98 $10,129
3/98 $10,155 3/98 $10,165
4/98 $10,208 4/98 $10,212
5/98 $10,305 5/98 $10,294
6/98 $10,392 6/98 $10,365
7/98 $10,414 7/98 $10,365
8/98 $10,584 8/98 $10,565
9/98 $10,832 9/98 $10,800
10/98 $10,775 10/98 $10,741
* 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 Aggregate Bond Index is an unmanaged index and a
theoretical measure of bond-market performance rather than an actual available
investment.
20 DELAWARE POOLED TRUST o 1998 ANNUAL REPORT
<PAGE>
Portfolio Manager
(Photo of Gary A. Reed)
Gary A. Reed
o Has managed the Portfolio since its inception
o Joined Delaware in 1989
o Formerly served as vice president and manager of the fixed-income department
at Irving Trust Company
o Eighteen years of investment experience
o Earned a bachelor's degree at the University of Chicago
o Earned a master's degree in economics at Columbia University
o Based in Philadelphia
Portfolio Profile
October 31, 1998
Total net assets $2.1 million
Inception Date December 29, 1997
Number of holdings 41
Top 10 holdings
1. Federal National Mortgage Association, 6.00%, 10/1/28
2. Federal National Mortgage Association, 6.00%, 4/1/13
3. U.S. Treasury Bonds, 6.125%, 11/15/27
4. Chase Manhattan, 7.25%, 6/1/07
5. Federal National Mortgage Association, 6.50%, 4/1/13
6. U.S. Bank N.A., 6.50%, 2/1/08
7. Wal-Mart Stores, 5.875%, 10/15/05
8. Travelers Property Casualty, 6.75%, 4/15/01
9. Federal Home Loan Mortgage Corporation, 7.50%, 3/1/28
10. Southern Investments UK, 6.375%, 11/15/01
Asset composition (based on total net assets)
Mortgage-backed securities 34.93%
Corporate bonds 31.63%
CMOs 13.40%
Asset-backed bonds 9.86%
U.S. Treasuries 9.00%
Cash and other net assets 1.18%
1998 ANNUAL REPORT o DELAWARE POOLED TRUST 21
<PAGE>
High-Yield Bond:
Flat Performance as Investors Bail Out
The High-Yield Bond Portfolio ended the fiscal year about where it left off the
previous year. The Portfolio returned just 0.30% for the year, giving up most of
its six-month return of 8.23% on a fourth-quarter sell-off. By comparison, The
Salomon Brothers High-Yield Cash Pay Index returned 1.59%, reflecting the
overall slowdown in the high-yield bond market. High-yield bonds were tracking
the sharp drop in the U.S. stock market, which prompted a flight to quality out
of all spread-sensitive asset classes.
For the first half of the year, the high-yield market experienced near-perfect
conditions: heavy new supply, strong economic growth, falling interest rates and
powerful demand. However, in the second half of the year, market dynamics began
to shift amid higher volatility in the equity and Treasury markets. The rocky
state of the global capital markets finally took its toll in the last quarter of
the fiscal year. Within the high yield market, returns were strongly correlated
with credit quality, as BB-rated issues outperformed all lower-rated credit
tiers. The Portfolio's heavy weighting in single-B rated issues accounted for
its underperformance relative to the Salomon Brothers High-Yield Cash Pay Index.
Despite the shaky conditions surrounding the worldwide capital markets, we
remain positive on the outlook for the U.S. economy. Weakening export economies
and rising imports will lead to slowing GDP growth next year, while historically
low interest rates should provide a floor to the key industrial sectors of the
housing, auto and consumer-durable markets. Accordingly, we believe a continued
single-B orientation will provide a yield premium relative to the market as well
as greater appreciation potential as investor confidence stabilizes.
The High-Yield Bond Portfolio has chugged ahead of the index since its inception
23 months ago
Average Annual Total Return
Periods ending October 31, 1998
-----------------------------------------------------------------------------
One Year Since Inception
0.30% 9.16%
-----------------------------------------------------------------------------
Growth of $10,000*
Salomon Brothers
High-Yield Cash The High-Yield
Pay Index Bond Portfolio
11/30/96 $10,000 12/31/96 $10,000
12/31/96 $10,075 12/31/96 $10,125
3/97 $10,231 3/97 $10,447
6/97 $10,681 6/97 $11,115
9/97 $11,101 9/97 $11,698
10/97 $11,195 10/97 $11,792
12/97 $11,397 12/97 $11,928
3/98 $11,854 3/98 $12,558
6/98 $11,991 6/98 $12,877
9/98 $11,477 9/98 $12,248
10/98 $11,373 10/98 $11,828
* 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.
22 DELAWARE POOLED TRUST o 1998 ANNUAL REPORT
<PAGE>
Portfolio Managers
(Photo of Paul Matlack)
Paul Matlack
o Has managed the Portfolio since its inception
o Joined Delaware in 1989
o Previously served as a loan officer in Mellon's Corporate Lending Division
and in the Special Industries Group at Provident National Bank
o Graduate of the University of Pennsylvania
o Earned an MBA in finance from George Washington University
o CFA charterholder
o Based in Philadelphia
Gerald T. Nichols
(Photo of Gerald T. Nichols)
o Has managed the Portfolio since its inception
o Joined Delaware in 1989
o Previously an investment officer for a merchant banking firm with interests
in the insurance and thrift industries
o Graduate of the University of Kansas with a bachelor's degree in business
administration and a master's degree in finance
o CFA charterholder
o Based in Philadelphia
Portfolio Profile
October 31, 1998
Total net assets $20.7 million
Inception Date December 2, 1996
Number of holdings 60
Top 10 holdings
1. AAI Fostergrant, 10.75%, 7/15/06
2. 21st Century Telecommunications Group
3. Classic Cable, 9.875%, 8/1/08
4. Les, 9.25%, 6/1/08
5. Octel Development, 10.00%, 5/1/06
6. Talon Automotive, 9.625%, 5/1/08
7. CEX Holdings, 9.625%, 6/1/08
8. Republic Group, 9.50%, 7/15/08
9. Philipp Brothers, 9.875%, 6/1/08
10. American Commercial Lines, 10.25%, 6/30/98
Industry composition
Industrial machinery 7.97%
Consumer products 7.81%
Chemicals 7.72%
Telecommunications 7.03%
Leisure/lodging/entertainment 6.79%
Metals/mining 6.65%
Miscellaneous 6.64%
Automobiles/auto parts 5.81%
Cable/media/publishing 4.97%
Paper/forest products 4.68%
Energy 4.42%
Buildings/materials 4.27%
Food/beverage/tobacco 4.25%
Transportation/shipping 3.22%
Electronics/electrical equipment 2.44%
Textiles/apparel/furniture 2.10%
Healthcare/pharmaceuticals 1.86%
Environmental services 1.68%
Retail 1.24%
Aerospace/defense 1.10%
Computers/technology 0.24%
Preferred stocks/warrants 3.35%
Cash and other net assets 3.76%
1998 ANNUAL REPORT o DELAWARE POOLED TRUST 23
<PAGE>
- --------------------------------------------------------------------------------
Diversified Core Fixed Income:
Strong Bonds Offset High-Yield Segment
The newly incepted Diversified Core Fixed Income Portfolio returned 7.18% for
the period from December 29, 1997 to October 31, 1998, in a year characterized
mainly by an uncertain global debt scenario. The Portfolio--which is currently
composed of 50% U.S. investment-grade bonds, 30% high-yield bonds and 20%
international bonds--benefited from its high-yield holdings in the first half of
the year, but the same riskier holdings were a drag from the summer months
onward.
During the first few months, the Portfolio saw positive conditions for U.S.
bonds. Solid economic growth, low inflation and stable Federal Reserve policy
created a supportive environment for all major sectors of the domestic
fixed-income market. Improving credit conditions, strong investor demand and a
rally in the stock market enabled high-yield bonds to be the lead performers,
while relatively stable interest rates allowed investment-grade bonds to earn
their coupon.
However, ongoing volatility in world financial markets finally sent shock waves
through the U.S. financial markets in the summer months. The falling stock
market and reduced export opportunities fueled investor concerns about the
outlook for the domestic economy, which in turn prompted a flight to quality to
Treasuries. As a result, the Treasury market was the primary source of
outperformance within the Lehman Brothers Aggregate Index and the broad bond
market. At the same time, high-yield bonds declined in value along with
equities.
For overseas bonds, the rising dollar over the first half of 1998 worked to
erase gains. But as the dollar weakened--especially in the third quarter--most
global bond markets rebounded strongly in U.S. dollar terms. By the end of
October 1998, Japanese bonds were up nearly 19% since fund inception and
European bonds were up 15% to 17% in that period. However, some of the non-U.S.
dollar markets, such as Canada, New
- --------------------------------------------------------------------------------
The Diversified Core Fixed Income Portfolio exceeded the U.S. bond market in
aggregate for much of its first 10 months
Total Return
For the period December 29, 1997 to October 31, 1998
- ----------------------------------------------------
7.18%
- ----------------------------------------------------
Growth of $10,000*
Lehman Brothers The Diversified
Aggregate Core Fixed
Bond Index Income Portfolio
12/31/97 $10,000 12/29/97 $10,000
12/31/97 $10,000 12/31/97 $ 9,988
1/98 $10,128 1/98 $10,153
2/98 $10,120 2/98 $10,224
3/98 $10,155 3/98 $10,353
4/98 $10,208 4/98 $10,471
5/98 $10,305 5/98 $10,576
6/98 $10,392 6/98 $10,659
7/98 $10,414 7/98 $10,765
8/98 $10,584 8/98 $10,600
9/98 $10,832 9/98 $10,777
10/98 $10,775 10/98 $10,718
* 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 Aggregate Bond Index is an unmanaged index and a
theoretical measure of bond-market performance rather than an actual available
investment.
24 DELAWARE POOLED TRUST o 1998 ANNUAL REPORT
<PAGE>
Zealand and Australia, returned far less as their currencies fell versus the
U.S. dollar. These currencies are now strongly undervalued and should recover.
Looking forward, we believe there exist opportunities for relative
outperformance, as each of the sectors we emphasize are at historically
attractive levels of relative value. Overall, the Portfolio has an average
quality of AA and a duration in line with the Lehman Brothers Aggregate Index.
-------------------
Portfolio Managers
-------------------
Roger Early (photo of Roger Early)
o Has managed the Portfolio since its inception in 1997
o Joined Delaware in 1994
o Previously held management positions at Rockwell International Corporation,
Touche Ross & Co., and Pittsburgh National Bank
o Served as Portfolio Manager for Federated Investment Counseling's fixed
income group
o Graduate of the University of Pennsylvania's Wharton School
o Earned an MBA in Finance from the University of Pittsburgh
o CFA charterholder and Certified Public Account
o Based in Philadelphia
Paul Matlack (photo of Paul Matlack)
o Has managed the Portfolio since its inception
o Joined Delaware in 1989
o Previously served as a loan officer in Mellon's Corporate Lending Division
and in the Special Industries Group at Provident National Bank
o Graduate of the University of Pennsylvania
o Earned an MBA in finance from George Washington University
o CFA charterholder
o Based in Philadelphia
- --------------------------------------------------------------------------------
Portfolio Profile
October 31, 1998
Total net assets $3.2 million
Inception Date December 29, 1997
Number of holdings 52
Top 10 holdings
1. Government National Mortgage Association, 6.50%, 1/15/28
2. Federal National Mortgage Association, 6.00%, 5/15/08
3. Schuff Steel, 10.50%, 6/1/08
4. Government National Mortgage Association, 9.00%, 7/15/21
5. Classic Cable, 9.875%, 8/1/08
6. American Commercial Lines, 10.25%, 6/30/08
7. Henry, 10.00%, 4/15/08
8. Germany (Federal Republic of), 6.00%, 1/4/07
9. Philipp Brothers, 9.875%, 6/1/08
10. Anthony Crane, 10.375%, 8/1/08
Asset composition (based on total net assets)
Corporate bonds 42.03%
Agency mortgage-backed securities 24.86%
Foreign bonds 18.99%
Asset-backed bonds 4.77%
CMOs 3.89%
U.S. Treasuries 1.62%
Cash and other net assets 3.84%
- --------------------------------------------------------------------------------
Ian G. Sims (photo of Ian G. Sims)
o Has managed the Portfolio since its inception
o Joined Delaware in 1990
o Formerly was a senior fixed-income and currency manager at Hill Samuel
Investment Advisers Ltd.
o Graduate of the University of Leicester and holds postgraduate degree in
statistics from the University of Newcastle-Upon-Tyne in the United Kingdom
o Based in London
1998 ANNUAL REPORT o DELAWARE POOLED TRUST 25
<PAGE>
- --------------------------------------------------------------------------------
Global Equity:
Economic Turmoil Curbs Corporate Profits
During its first full year of operations, The Global Equity Portfolio toughed
out some of the most volatile performances seen in world equity markets in
recent history. For the year ending October 31, 1998, Global Equity delivered a
total return of 8.31%. The Morgan Stanley Capital International World Stock
Index (net) posted a 15.26% return for the period.
The markets' sharp declines since the end of the second quarter were prompted by
the devaluation of Russia's currency, Japan's procrastination in reforming its
financial institutions, continued weakness in Asia, and further evidence of
weakness in Latin America. Simultaneously, there were indications of a decline
in corporate profits across a range of industries in all major markets.
In the U.S., it became increasingly clear as the year progressed that many of
the S&P 500 companies would experience a slowdown in earnings growth. This was
particularly applicable to the "Nifty 20," those large multinational companies
which had been trading at high multiples. Consequently, these stocks were hurt
the most in the U.S. As a value investor, Delaware did not have exposure to
these stocks.
Following two interest-rate cuts in the fall, the S&P 500 regained some of its
third-quarter losses, returning 22.01% through October 31. While we believe that
further sharp market declines are unlikely, we are concerned about mounting
pressures on corporate profits from rising labor costs and financial market
excesses. Like the tail wagging the dog, this could set off real economic
problems, particularly in the U.S. Should Japan stabilize, as we believe it
will, this would further the recovery process in global economies. This, in
addition to low bond yields, should help support global equity markets.
- --------------------------------------------------------------------------------
The Global Equity Portfolio has lagged its benchmark index during its first year
of operation, but has weathered the volatile conditions in many world markets
during the period
Average Annual Total Return
Periods ending October 31, 1998
- --------------------------------
One Year Since Inception
8.31% 3.30%
- --------------------------------
Growth of $10,000*
Morgan Stanley
Capital International The Global
World Stock Index (net) Equity Portfolio
10/97 $10,000 10/15/97 $10,000
12/97 $ 9,472 12/31/97 $ 9,553
2/98 $ 9,754 2/98 $ 9,671
4/98 $11,151 4/98 $11,023
6/98 $11,377 6/98 $10,893
8/98 $10,014 8/98 $ 9,742
10/98 $10,917 10/98 $10,347
* Past performance is not necessarily indicative of future results. Total return
assumes reinvestment of dividends and capital gains. The Morgan Stanley Capital
International World Stock Index (net) 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.
26 DELAWARE POOLED TRUST o 1998 ANNUAL REPORT
<PAGE>
In 1998, our long term, value-oriented focus did not change. We continue
focusing the majority of Global Equity's exposure in more developed markets such
as Australasia, the U.K., and selected Continental European markets. We have
underweighted the U.S. and Japan, where we believe stocks are well overvalued.
-------------------
Portfolio Managers
-------------------
Robert L. Arnold (photo of Robert L. Arnold)
o Has served as a subadvisor to the Portfolio since its inception
o Furnishes recommendations, asset allocation advice, research, and other
services with respect to U.S. securities
o Joined Delaware in 1992
o Previously a planning analyst with Chemical Bank in New York
o Earned a bachelor's degree from Carnegie Mellon University and an MBA from the
University of Chicago
o Based in Philadelphia
Elizabeth A. Desmond (photo of Elizabeth A. Desmond)
o Has managed the Portfolio since its inception
o Joined Delaware International in 1991
o Previously was a Pacific Basin equity analyst and senior portfolio manager at
Hill Samuel Investment Advisers Ltd.
o Graduate of Wellesley College and the masters program in East Asian studies at
Stanford University
o CFA charterholder
o Based in London
- ------------------------------------------------
Portfolio Profile
October 31, 1998
Total net assets $3.1 million
Inception Date October 15, 1997
Asset composition (based on total net assets)
Common stocks 96.68%
Cash equivalents and other net assets 3.32%
Number of holdings 58
Top 10 holdings
1. Glaxo Wellcome
2. PowerGen
3. Cable & Wireless
4. Boots
5. GKN
6. Foster's Brewing Group
7. Pitney Bowes
8. Siemens
9. Electrabel
10. McGraw-Hill
Geographical composition
United States 37.46%
United Kingdom 22.38%
Germany 9.00%
Australia 8.03%
France 4.90%
Japan 3.36%
Spain 2.96%
Belgium 2.44%
New Zealand 2.42%
Hong Kong 1.93%
Netherlands 1.27%
Malaysia 0.53%
Cash and other net assets 3.32%
- ------------------------------------------------
1998 ANNUAL REPORT o DELAWARE POOLED TRUST 27
<PAGE>
- --------------------------------------------------------------------------------
International Equity:
Lower Interest Rates Fuel Recovery
For the year ending October 31, 1998, The International Equity Portfolio
returned 4.96%, lagging the Morgan Stanley Capital International EAFE Stock
(net) Index's 9.65% return. Deteriorating financial conditions around the globe,
especially in the third quarter, detracted from strong gains posted earlier in
the year.
In the first half of 1998, most western equity markets were relaxed (arguably
complacent) about Asia's economic crisis spreading to them and, instead,
concentrated on the beneficial effects of resulting lower interest rates.
However, Russia's currency devaluation in the summer was the proverbial straw
that broke the camel's back. Investors had already become increasingly worried
about lower-than-expected corporate profits and Japan's lack of compulsion to
reform its failed banking system.
Consequently, as we advanced into the third quarter investors began to focus
more on the deflationary effects of the emerging markets' crisis. This set off
sharp declines in U.S. financial stocks and in Continental European markets,
which had performed well in the first six months of the year.
Following a series of global interest rate cuts, international equity markets
recovered somewhat in October. Many Asian markets rallied strongly after the
sharp declines that they had experienced earlier in the year.
Against this background, the Portfolio remains most overweighted in the U.K. and
in Australasia, where valuations are attractive, and is underweighted--relative
to the EAFE Index--in Continental Europe and Japan. We believe most European
markets remain highly priced in view of their longer term growth prospects,
whilst we have not as yet seen evidence of genuine corporate restructuring in
Japan that is required before the market as a whole there will be interesting.
- --------------------------------------------------------------------------------
The International Equity Portfolio has, on average, outpaced the MSCI EAFE Stock
Index (net) over the nearly seven years of operation
Average Annual Total Return
Periods ending October 31, 1998
- ---------------------------------------
One Year Five Years Since Inception
4.96% 9.85% 10.83%
- ---------------------------------------
Growth of $10,000*
Morgan Stanley Capital
International The International
EAFE Stock Index (net) Equity Portfolio
2/92 $10,000 2/4/92 $10,000
6/92 $ 9,005 6/92 $10,189
9/92 $ 9,196 9/92 $ 9,858
12/92 $ 9,335 12/92 $ 9,959
3/93 $ 8,974 3/93 $11,014
6/93 $10,050 6/93 $11,283
9/93 $11,061 9/93 $12,074
12/93 $11,795 12/93 $12,918
3/94 $11,896 3/94 $13,035
6/94 $12,312 6/94 $13,204
9/94 $12,941 9/94 $13,544
12/94 $12,954 12/94 $13,306
3/95 $12,822 3/95 $13,668
6/95 $13,060 6/95 $13,910
9/95 $13,155 9/95 $14,737
12/95 $13,704 12/95 $15,124
3/96 $14,259 3/96 $15,942
6/96 $14,671 6/96 $16,381
9/96 $14,903 9/96 $16,809
12/96 $14,884 12/96 $17,702
3/97 $15,121 3/97 $18,680
6/97 $14,884 6/97 $20,759
9/97 $16,816 9/97 $20,735
10/97 $16,698 10/97 $19,020
12/93 $15,390 12/93 $18,697
3/98 $17,654 3/98 $21,066
6/98 $17,841 6/98 $20,702
9/98 $15,305 9/98 $18,224
10/98 $16,901 10/98 $20,001
* Past performance is not necessarily indicative of future results. Total return
assumes reinvestment of dividends and capital gains. The Morgan Stanley Capital
International EAFE Stock Index (net) 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.
28 DELAWARE POOLED TRUST o 1998 ANNUAL REPORT
<PAGE>
- -----------------
Portfolio Manager
- -----------------
Timothy W. Sanderson (photo of Timothy W. Sanderson)
o Has managed the Portfolio since its inception
o Joined Delaware in 1990
o Previously was analyst and senior portfolio manager at Hill Samuel Investment
Advisers Ltd., where he managed international institutional portfolios
o Seventeen years of investment experience
o Graduate of University College, Oxford, England
o Based in London
- ------------------------------------------------
Portfolio Profile
October 31, 1998
Total net assets $616.2 million
Inception Date February 4, 1992
Asset composition (based on total net assets)
Common stocks 94.20%
Cash equivalents and other net assets 5.80%
Number of holdings 53
Top 10 holdings
1. GKN
2. Glaxo Wellcome
3. Foster's Brewing Group
4. West Japan Railway
5. Cable & Wireless
6. Blue Circle Industry
7. Rio Tinto
8. Great Universal Stores
9. Powergen
10. British Airways
Geographical composition
United Kingdom 30.06%
Japan 12.24%
Australia 11.41%
Germany 9.92%
France 8.22%
Spain 6.37%
Netherlands 6.34%
Hong Kong 3.87%
New Zealand 2.94%
Belgium 2.07%
Singapore 0.40%
Malaysia 0.36%
Cash and other net assets 5.80%
- ------------------------------------------------
1998 ANNUAL REPORT o DELAWARE POOLED TRUST 29
<PAGE>
- --------------------------------------------------------------------------------
Labor Select International Equity:
U.S. and European Markets Hit the Comeback Trail
The Labor Select International Portfolio posted a 6.18% return for the year
ending October 31, 1998. The Morgan Stanley Capital International EAFE Stock
Index (net) for its part witnessed a 9.65% return for the period. The ebullient
market environment of recent years was stalled in the third quarter by
escalating economic and financial problems throughout the world, which partially
erased first and second quarter gains.
During the first six months of 1998, investors in the Western world seemed
indifferent to Asias troubles in terms of any impact it might have on them.
Rather, they basked in the prospects of a lower interest rate environment and
continued pouring money into international equity markets.
A cloud of gloom hovered nearby. Russia slumped into a recession during the
summer that forced it to devalue its currency. Problems followed in Brazil,
where a mass exodus of capital threatened a devaluing of its currency.
Concurrently, investors had begun worrying about indications of declining
corporate profits in several industries, not to mention Japans lack of a sense
of urgency in tending to its financial reform.
These events swayed investors to concentrate on the deflationary effects of the
global economic crisis, which led to especially sharp falls in financial stocks
and in Continental European markets. By late September, the U.S. had begun
cutting interest rates and many other countries followed suit, including the
U.K., Canada and some within the Far East. As a result, equity markets recovered
some of their third quarter losses.
Looking ahead, much still hinges on Japan, where recently its parliament
approved a 60 trillion yen ($509 billion) bank bailout package. Only time will
confirm how effectively the banking plan is implemented. Certainly, Japans
stabilization would help stimulate more widespread global economic recovery.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
<S> <C>
The Labor Select International Equity Portfolio Average Annual Total Return
has benefited from its investment philosophy as Periods ending October 31, 1998
evidenced by its outperformance of the MSCI -----------------------------------
EAFE Stock Index (net) One Year Since Inception
6.18% 3.91%
-----------------------------------
</TABLE>
Growth of $10,000*
<PAGE>
Morgan Stanley The Labor Select
Capital International International
EAFE Stock Index (net) Equity Portfolio
12/31/95 $10,000 12/19/95 $10,000
12/31/95 $10,000 12/31/95 $10,240
1/96 $10,043 1/96 $10,450
2/96 $10,179 2/96 $10,630
3/96 $10,296 3/96 $10,821
4/96 $10,598 4/96 $11,062
5/96 $10,405 5/96 $11,031
6/96 $10,466 6/96 $11,031
7/96 $10,163 7/96 $10,951
8/96 $10,188 8/96 $11,172
9/96 $10,461 9/96 $11,545
10/96 $10,357 10/96 $11,797
11/96 $10,772 11/96 $12,483
12/96 $10,636 12/96 $12,201
1/97 $10,266 1/97 $12,358
2/97 $10,436 2/97 $12,619
3/97 $10,477 3/97 $12,839
4/97 $10,535 4/97 $12,954
5/97 $11,223 5/97 $13,626
6/97 $11,844 6/97 $14,035
7/97 $12,038 7/97 $14,392
8/97 $11,142 8/97 $13,793
9/97 $11,768 9/97 $14,603
10/97 $10,866 10/97 $13,686
12/97 $10,854 12/97 $13,579
3/98 $12,459 3/98 $15,280
6/98 $12,600 6/98 $15,323
9/98 $10,817 9/98 $13,582
10/98 $11,948 10/98 $14,531
* Past performance is not necessarily indicative of future results. Total
return assumes reinvestment of dividends and capital gains. The Morgan
Stanley Capital International EAFE Stock Index (net) 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.
30 DELAWARE POOLED TRUST o 1998 ANNUAL REPORT
<PAGE>
With this in mind, we expect to maintain overweighted positions in Australasia
because of continuing solid economic conditions and undervalued currencies in
the region. We remain overweighted in the U.K., but have less exposure, on the
whole, in Continental Europe. We continue to avoid emerging markets, such as
Malaysia, Singapore and Hong Kong, and maintain a low exposure in Japan due to
limited corporate profitability there.
Portfolio Manager
Clive A. Gillmore
(Photo of Clive A. Gilmore)
o Has managed the Portfolio since its inception
o Joined Delaware in 1990
o Previously was Pacific Basin equity analyst and senior portfolio manager at
Hill Samuel Investment Advisers Ltd.
o Fourteen years of investment experience
o Graduate of Warwick University, England
o Based in London
- --------------------------------------------------------------------------------
Portfolio Profile
October 31, 1998
Total net assets $103.4 million
Inception Date December 19, 1995
Asset composition (based on total net assets)
Common stocks 91.22%
Cash equivalents and other net assets 8.78%
Number of holdings 47
Top 10 holdings
1. West Japan Railway
2. Eisai Co. Limited
3. Bayer
4. Alcatel
5. Banco Central Hispanoamericano
6. Elf Aquitaine
7. Societe Generale
8. BG
9. National Astralia Bank
10. Matsushita Electric Industrial
Geographical composition
United Kingdom 27.70%
Japan 14.19%
Australia 11.87%
Germany 10.89%
France 8.67%
Netherlands 6.39%
Spain 5.99%
New Zealand 3.45%
Belgium 2.07%
Cash and other net assets 8.78%
- --------------------------------------------------------------------------------
1998 ANNUAL REPORT o DELAWARE POOLED TRUST 31
<PAGE>
- --------------------------------------------------------------------------------
Emerging Markets:
Low Valuations Signal Opportunity
Emerging markets plunged fast and furiously during fiscal year 1998, as Asia's
regional economic crisis spread to Russia and Latin America. The Emerging
Markets Portfolio fell 35.30%, underperforming its benchmark, the Morgan Stanley
Capital International Emerging Markets Free Equity Index, which dropped 30.99%.
During the second quarter, several major markets fell sharply: Asia by 33.7%,
Eastern Europe by 35.2%, South Africa by 26.9% and Latin America by 20.6%.
Within Asia, renewed panic set off declines in Indonesia, Malaysia and Thailand
of nearly 50% in U.S. dollar terms. In Eastern Europe, Russia lapsed into
economic crisis as the governments problems in refinancing its substantial
short-term debts and threats to Russias ruble forced interest rates to rise
over 100%. South Africa joined the list of crisis countries, with the rand
falling by 15%. In Latin America, the larger markets of Argentina, Brazil, Chile
and Mexico declined between 18% and 23%.
Economic anemia continued in the third quarter. Ironically, Asia, despite
falling by 15.8% between June and September, turned in the best performance of
the quarter. Europe and Latin America fell by 29.8% and 27.5%, respectively.
Only three small markets had positive performanceMorocco, Pakistan and
Thailand. Russia was easily the worst performer, declining 74.4% in U.S. dollar
terms due to a combination of market and currency falls. Malaysia delivered the
quarters second-worst performance, falling 41.2%.
Brazil posed a tremendous concern in the third quarter. International currency
reserves fell from $70 billion to $40 billion in U.S. dollar terms, while
capital outflows averaged $0.5 million (U.S.) per day. In October, Brazil
announced a fiscal reform package of spending cuts and tax increases, which
helped diffuse earlier concerns of currency devaluation.
One result of the sell-off in emerging markets has been that, faced with
shrinking liquidity, forced sellers have
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
<S> <C>
The Emerging Markets Portfolio has kept ahead Average Annual Total Return
of its benchmark index despite a rough period Periods ending October 31, 1998
for emerging markets in general ---------------------------------
One Year Since Inception
(35.30)% (28.52)%
---------------------------------
</TABLE>
Growth of $10,000*
<PAGE>
Morgan Stanley Capital
International Emerging Markets The Emerging
Free Equity Index Markets Portfolio
4/97 $10,000 4/14/97 $10,000
5/97 $10,304 5/97 $10,570
6/97 $10,855 6/97 $11,190
7/97 $11,017 7/97 $11,230
8/97 $ 9,615 8/97 $10,290
9/97 $ 9,882 9/97 $10,790
10/97 $ 8,260 10/97 $ 9,200
12/97 $ 8,151 12/97 $ 8,735
3/98 $ 8,655 3/98 $ 9,622
6/98 $ 6,613 6/98 $ 7,288
9/98 $ 5,157 9/98 $ 5,657
10/98 $ 5,701 10/98 $ 5,952
* 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
Equity 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.
32 DELAWARE POOLED TRUST o 1998 ANNUAL REPORT
<PAGE>
had to focus disposals on the higher quality issues where some buyers could
still be found. As a result many of these stocks have become heavily oversold,
offering tremendous value to long term investors. Recent investment policy has
therefore focused on releasing cash from markets and stocks which have held up
better, in order to put greater emphasis on the bargains. To that end, we have
sold positions in Chile, Greece, India, Israel and Poland, to provide cash for
additions to Brazil, China, Estonia and South Africa.
Portfolio Managers
(Photo of Robert Akester)
Robert Akester
o Has managed the Portfolio since its inception
o Joined Delaware in 1996
o Previously was a Director of Hill Samuel Investment Advisers Ltd.
o Twenty-seven years of investment experience
o Earned a bachelors degree in Statistics and Economics from University
College, London
o Associate of the Institute of Actuaries, with a certificate in Finance and
Investment
o Based in London
Clive A. Gillmore
(Photo of Clive A. Gillmore)
o Has managed the Portfolio since its inception
o Joined Delaware in 1990
o Previously was Pacific Basin equity analyst and senior portfolio manager at
Hill Samuel Investment Advisers Ltd.
o Fourteen years of investment experience
o Graduate of Warwick University, England
o Based in London
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Profile
October 31, 1998
Total net assets $34.0 million
Inception Date April 14, 1997
Asset composition (based on total net assets)
Common stocks 83.34%
Cash equivalents and other net assets 16.66%
Number of holdings 80
Top 10 holdings
1. Iscor Limited
2. Anglo American Corporation of South Africa Limited
3. Shenzhen Expressway
4. Asia Cement GDR
5. The India Fund
6. Hana Microelectronics Public Co. Limited
7. Uniao de Bancos Brasileiros
8. Metalurgica Gerdau
9. Guangdong Kelon Electric Holding
10. Telecomunicacoes do Parana
Geographical composition
Brazil 16.16%
South Africa 12.42%
Hong Kong 7.39%
India 4.98%
Chile 4.80%
Malaysia 4.42%
Argentina 4.12%
Taiwan 4.01%
Mexico 3.93%
Thailand 2.78%
Czech Republic 2.47%
Turkey 2.42%
Peru 2.14%
Egypt 1.91%
South Korea 1.88%
Greece 1.56%
Russia 1.41%
Israel 1.35%
Croatia 1.31%
Estonia 1.07%
Romania 0.67%
Slovenia 0.13%
Indonesia 0.01%
Cash and other net assets 16.66%
- --------------------------------------------------------------------------------
1998 ANNUAL REPORT o DELAWARE POOLED TRUST 33
<PAGE>
- --------------------------------------------------------------------------------
Global Fixed Income:
World Markets Shine Against Weaker Dollar
World bonds posted solid gains in the second half of fiscal 1998. For the year
ending October 31, 1998, The Global Fixed Income Portfolio returned 6.28%,
gaining from exposure to European bond markets. The Salomon Brothers Non-U.S.
World Government Bond Index returned double the Portfolios performance given
its larger weighting in strongly performing Japanese bond markets.
Early in 1998, a strong U.S. dollar eliminated modest gains in world bonds.
Since then, the dollar has weakened. On average, the dollar was flat in the
second quarter. Still, we experienced negative U.S. dollar returns from Japan,
Australia, Canada and New Zealand as currencies exposed to declining Asian and
commodity markets were weak.
It wasnt until the third quarter that we saw a remarkable surge in global
bonds. In local market terms, markets averaged 5% gains, notably more than in
the prior six months. It was in dollar terms that markets really shone. The
dollar declined by about 5% on average, helping to boost returns from global
bonds to almost 8.5%.
Against this backdrop, we expect to remain selectively overweighted in better
value markets, such as New Zealand, Canada and Australia. We plan to
under-weight lower value markets, such as Japan, and hold market weight in
Europe with exposure to Germany, Netherlands, and Sweden.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------
<S> <C>
The Global Fixed Income Portfolio has exceeded Average Annual Total Return
the Salomon Brothers World Government Bond Periods ending October 31, 1998
Index for most of its nearly six years of operation ------------------------------------------
One Year Five Years Since Inception
6.28% 9.37% 10.81%
------------------------------------------
</TABLE>
Growth of $10,000*
<PAGE>
Salomon Brothers
World Government The Global Fixed
Bond Index Income Portfolio
11/92 $10,000 11/92 $10,000
12/92 $10,060 12/92 $10,110
3/93 $10,598 3/93 $10,750
6/93 $10,907 6/93 $11,099
9/93 $11,401 9/93 $11,540
12/93 $11,397 12/93 $11,963
3/94 $11,397 3/94 $11,927
6/94 $11,472 6/94 $11,629
9/94 $11,606 9/94 $11,829
12/94 $11,662 12/94 $12,196
3/95 $12,937 3/95 $12,357
6/95 $13,628 6/95 $13,058
9/95 $13,485 9/95 $13,853
12/95 $13,882 12/95 $14,467
3/96 $13,623 3/96 $14,700
6/96 $13,678 6/96 $15,102
9/96 $14,053 9/96 $15,856
12/96 $14,387 12/96 $16,495
3/97 $13,792 3/97 $16,300
6/97 $14,210 6/97 $16,800
9/97 $14,390 9/97 $17,076
10/97 $14,690 10/97 $17,276
12/97 $14,422 12/97 $16,963
3/98 $14,534 3/98 $16,963
6/98 $14,823 6/98 $17,171
9/98 $16,057 9/98 $17,798
10/98 $16,532 10/98 $18,362
* 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.
34 DELAWARE POOLED TRUST o 1998 ANNUAL REPORT
<PAGE>
Portfolio Manager
(Photo of Ian G. Sims)
Ian G. Sims
o Has managed the Portfolio since its inception
o Joined Delaware in 1990
o Formerly was a senior fixed-income and currency manager at Hill Samuel
Investment Advisers Ltd.
o Graduate of the University of Leicester and holds postgraduate degree in
statistics from the University Newcastle-Upon-Tyne in the United Kingdom
o Based in London
- --------------------------------------------------------------------------------
Portfolio Profile
October 31, 1998
Total net assets $660.7 million
Inception Date November 30, 1992
Asset composition (based on total net assets)
Government Bonds 55.93%
Corporate Bonds 39.73%
Cash equivalents and other net assets 4.34%
Number of holdings 54
Top 10 holdings
1. Swedish Government, 9.00%, 4/20/09
2. Swedish Government, 6.00%, 2/9/05
3. Ontario Proince, 8.00%, 3/11/03
4. British Columbia, 7.75%, 6/16/03
5. Government of Canada, 4.75%, 9/15/99
6. Netherlands Government, 8.25%, 9/15/07
7. Bundesrepublic Deutschland, 6.25%, 1/4/24
8. Government of Canada, 10.25%, 3/15/14
9. Government of New Zealand, 7.00%, 7/15/09
10. Queensland Treasury, 8.00%, 7/14/99
Geographical composition
Canada 21.99%
Sweden 14.20%
United States 14.06%
Australia 13.44%
New Zealand 12.04%
Germany 9.98%
Netherlands 6.95%
Switzerland 3.00%
Cash and other net assets 4.34%
- --------------------------------------------------------------------------------
1998 ANNUAL REPORT o DELAWARE POOLED TRUST 35
<PAGE>
- --------------------------------------------------------------------------------
International Fixed Income:
Japan, International Markets Post Gains
Amidst a weaker U.S. dollar, world bond returns soared in the second half of
fiscal year 1998. The International Fixed Income Portfolio posted a 5.96% return
for the fiscal year ending October 31, 1998. This was less than half the return
of the Salomon Brothers Non-U.S. World Government Bond Index, which benefited
mostly from strong performance in the Japanese bond market.
During the first half of 1998, the rising dollar worked to erase gains in world
bonds. But as the dollar weakened, especially in the third quarter, world
markets returned almost 10% in dollar terms. In Europe, returns were more
scattered. Europe delivered returns in the area of 12% through the end of our
reporting period, while Canada and Australia had negative results due to
currency declines caused by concern about world commodity prices.
Looking ahead, we will continue to underweight lower value markets, such as
Japan, and selectively overweight in better value markets, including New
Zealand, Canada and Australia. We plan to maintain market weight in Europe,
focusing on Germany, the Netherlands, and Sweden. In addition, we expect to
continue holding our portfolio duration slightly short of the Salomon Brothers
Non-U.S. World Government Bond Index.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
<S> <C>
The International Fixed Income Portfolio has Average Annual Total Return
posted solid gains over the past year-and-a-half Periods ending October 31, 1998
in the face of volatile international bond markets ---------------------------------
One Year Since Inception
5.96% 8.46%
---------------------------------
</TABLE>
Growth of $10,000*
Salomon Brothers Non-U.S. The International
World Government Bond Index Fixed Income Portfolio
4/97 $10,000 4/11/97 $10,000
5/97 $10,157 5/97 $10,250
6/97 $10,282 6/97 $10,380
7/97 $10,014 7/97 $10,180
8/97 $10,059 8/97 $10,270
9/97 $10,303 9/97 $10,580
10/97 $10,534 10/97 $10,710
12/97 $10,161 12/97 $10,412
3/98 $10,203 3/98 $10,589
6/98 $10,374 6/98 $10,474
9/98 $11,371 9/98 $10,937
10/98 $11,883 10/98 $11,349
* 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.
36 DELAWARE POOLED TRUST o 1998 ANNUAL REPORT
<PAGE>
Portfolio Manager
(Photo of Ian G. Sims)
Ian G. Sims
o Has managed the Portfolio since its inception
o Joined Delaware in 1990
o Formerly was a senior fixed-income and currency manager at Hill Samuel
Investment Advisers Ltd.
o Graduate of the University of Leicester and holds postgraduate degree in
statistics from the University of Newcastle-Upon-Tyne in the United Kingdom
o Based in London
- --------------------------------------------------------------------------------
Portfolio Profile
October 31, 1998
Total net assets $88.0 million
Inception Date April 11, 1997
Asset composition (based on total net assets)
Government Bonds 57.98%
Corporate Bonds 37.86%
Cash Equivalents and other net assets 4.16%
Number of holdings 47
Top 10 holdings
1. Netherlands Government, 8.25%, 9/15/07
2. Swedish Government, 9.00%, 4/20/09
3. Swedish Government, 8.00%, 8/15/07
4. Government of Canada, 10.25%, 3/15/14
5. Queensland Treasury, 8.00%, 5/14/03
6. U.S. Treasury Inflation Index Note, 3.375%, 1/15/07
7. British Columbia, 7.75%, 6/16/03
8. Government of Canada Series A81, 7.50%, 9/1/00
9. Republic of Finland, 5.50%, 2/9/01
10. Bayerische Vereinsbank, 6.50%, 6/6/05
Geographical composition
Germany 17.86%
Canada 17.02%
Sweden 14.22%
Australia 12.58%
New Zealand 11.82%
Netherlands 8.12%
United States 6.69%
Japan 4.53%
Switzerland 3.00%
Cash and other net assets 4.16%
- --------------------------------------------------------------------------------
1998 ANNUAL REPORT o DELAWARE POOLED TRUST 37
<PAGE>
- --------------------------------------------------------------------------------
Delaware Pooled Trust, Inc.: The Large-Cap Value Equity Portfolio
(formerly The Defensive Equity Portfolio)
Statement of Net Assets
October 31, 1998
Number Market
of Shares Value
- --------------------------------------------------------------------------------
COMMON STOCK: 95.28%
- --------------------------------------------------------------------------------
Automobiles and Automotive Parts: 5.57%
- --------------------------------------------------------------------------------
Cooper Industries 24,900 $1,098,713
Ford Motor 47,900 2,598,575
General Motors 19,200 1,210,800
Tenneco 54,700 1,661,513
-----------
6,569,601
-----------
- --------------------------------------------------------------------------------
Banking, Finance and Insurance: 19.05%
- --------------------------------------------------------------------------------
American General 34,700 2,376,950
Aon 25,050 1,553,100
BankAmerica 38,361 2,203,360
BankBoston 61,300 2,256,606
Bank One 34,830 1,702,316
First Union 35,390 2,052,620
Mellon Bank 32,800 1,972,100
Mercantile Bancorporation 15,850 724,147
National City 11,500 739,594
Norwest 55,800 2,075,063
SAFECO 27,700 1,198,891
St. Paul 76,500 2,534,063
Summit Bancorp 28,050 1,064,147
-----------
22,452,957
-----------
- --------------------------------------------------------------------------------
Cable, Media and Publishing: 3.07%
- --------------------------------------------------------------------------------
McGraw-Hill 40,200 3,615,488
-----------
3,615,488
-----------
- --------------------------------------------------------------------------------
Chemicals: 6.09%
- --------------------------------------------------------------------------------
duPont(E.I.)deNemours 37,978 2,183,735
Hoechst ADR 33,900 1,444,988
Imperial Chemical ADR 49,100 1,779,875
PPG Industries 30,900 1,767,094
-----------
7,175,692
-----------
- --------------------------------------------------------------------------------
Computers and Technology: 4.04%
- --------------------------------------------------------------------------------
Pitney Bowes 53,500 2,945,844
Xerox 18,700 1,811,563
-----------
4,757,407
-----------
- --------------------------------------------------------------------------------
Electronics and Electrical Equipment: 4.82%
- --------------------------------------------------------------------------------
AMP 29,200 1,199,025
Emerson Electric 36,500 2,409,000
Thomas & Betts 46,400 2,073,500
-----------
5,681,525
-----------
<PAGE>
Number Market
of Shares Value
- --------------------------------------------------------------------------------
Energy: 9.93%
- --------------------------------------------------------------------------------
British Petroleum ADR 27,468 $ 2,429,201
Chevron 12,700 1,035,050
Consolidated Natural Gas 15,000 792,188
Enron 11,800 622,450
Mobil 21,400 1,619,713
Texaco 36,800 2,182,700
USX-Marathon Group 20,600 673,363
Williams 85,500 2,345,906
-----------
11,700,571
-----------
- --------------------------------------------------------------------------------
Environmental Services: 1.46%
- --------------------------------------------------------------------------------
Browning Ferris 48,700 1,725,806
-----------
1,725,806
-----------
- --------------------------------------------------------------------------------
Food, Beverage and Tobacco: 8.43%
- --------------------------------------------------------------------------------
Bestfoods 59,100 3,220,944
ConAgra 60,700 1,847,556
Fortune Brands 72,900 2,410,256
Heinz (H.J.) 42,350 2,461,594
-----------
9,940,350
-----------
- --------------------------------------------------------------------------------
Healthcare and Pharmaceuticals: 8.11%
- --------------------------------------------------------------------------------
American Home Products 40,248 1,962,090
Baxter International 47,700 2,859,019
Glaxo Wellcome ADR 24,300 1,512,675
Pharmacia & Upjohn 60,900 3,223,894
-----------
9,557,678
-----------
- --------------------------------------------------------------------------------
Metals and Mining: 2.65%
- --------------------------------------------------------------------------------
Allegheny Teledyne 55,300 1,137,106
Aluminum Company of
America 25,000 1,981,250
-----------
3,118,356
-----------
- --------------------------------------------------------------------------------
Paper and Forest Products: 3.97%
- --------------------------------------------------------------------------------
Kimberly-Clark 63,200 3,049,400
Union Camp 37,900 1,629,700
-----------
4,679,100
-----------
- --------------------------------------------------------------------------------
Retail: 4.33%
- --------------------------------------------------------------------------------
May Department Stores 42,100 2,568,100
Penney (J.C.) 53,400 2,536,500
-----------
5,104,600
-----------
38 DELAWARE POOLED TRUST o 1998 ANNUAL REPORT
<PAGE>
Number Market
of Shares Value
- -----------------------------------------------------------------------------
Telecommunications: 11.95%
- -----------------------------------------------------------------------------
Ameritech 41,400 $ 2,233,013
AT&T 45,000 2,801,250
Bell Atlantic 46,900 2,491,563
Cable & Wireless ADR 59,200 1,990,600
Frontier 67,000 2,014,188
GTE 43,500 2,552,906
-----------
14,083,520
-----------
- -----------------------------------------------------------------------------
Transportation and Shipping: 1.81%
- -----------------------------------------------------------------------------
British Airways ADR 28,200 2,132,625
-----------
2,132,625
-----------
- -----------------------------------------------------------------------------
Total Common Stock
(cost $103,412,146) 112,295,276
- -----------------------------------------------------------------------------
Principal
Amount
- -----------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 4.08%
- -----------------------------------------------------------------------------
With Chase Manhattan
5.30% 11/02/98 (dated
10/30/98, collateralized
by $1,596,000 U.S.
Treasury Notes 5.75%
due 10/31/02, market
value $1,723,439) $1,688,000 1,688,000
With J.P. Morgan Securities
5.25% 11/02/98 ( dated
10/30/98, collateralized
by $56,000 U.S.
Treasury Notes 5.625%
due 11/30/00, market
value $58,545 and $534,000
U.S. Treasury Notes 5.25%
due 01/31/01, market
value $551,952 and $489,000
U.S. Treasury Notes 6.25%
due 01/31/02, market
value $525,295 and $415,000
U.S. Treasury Notes 5.50%
due 02/28/03, market
value $437,614) 1,542,000 1,542,000
With PaineWebber
5.30% 11/02/98 (dated
10/30/98, collateralized
by $593,000 U.S.
Treasury Notes 5.625%
due 05/15/01, market
value $629,055 and $510,000
U.S. Treasury Notes 6.50%
due 08/31/01, market
<PAGE>
Principal Market
Amount Value
- -----------------------------------------------------------------------------
value $546,056 and $382,000
U.S. Treasury Notes 7.50%
due 05/15/02, market
value $435,011) $1,577,000 $1,577,000
- -----------------------------------------------------------------------------
Total Repurchase Agreements
(cost $4,807,000) 4,807,000
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 99.36%
(cost $108,219,146) $117,102,276
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES: 0.64% 756,054
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
Net assets applicable to
6,628,396 shares ($0.01 Par value)
outstanding; equivalent to
$17.78 Per share: 100.00% $117,858,330
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 1998:
- -----------------------------------------------------------------------------
Common stock, $0.01 par value,
2,000,000,000 shares authorized
to the Fund with 50,000,000 shares
allocated to this Portfolio $93,891,533
Undistributed net investment income 949,449
Accumulated net realized gain on
investments 14,134,218
Net unrealized appreciation of
investments 8,883,130
- -----------------------------------------------------------------------------
Total Net Assets $117,858,330
- -----------------------------------------------------------------------------
ADR = American Depository Receipt
See accompanying notes
1998 ANNUAL REPORT o DELAWARE POOLED TRUST 39
<PAGE>
- -----------------------------------------------------------------------------
Delaware Pooled Trust Inc.: The Growth and Income Portfolio
Statement of Net Assets
October 31, 1998
Number Market
of Shares Value
- -----------------------------------------------------------------------------
COMMON STOCK: 97.84%
- -----------------------------------------------------------------------------
Aerospace and Defense: 0.52%
- -----------------------------------------------------------------------------
GenCorp 500 $ 11,062
--------
11,062
--------
- -----------------------------------------------------------------------------
Automobiles and Automotive Parts: 1.70%
- -----------------------------------------------------------------------------
Danaher 900 35,944
--------
35,944
- -----------------------------------------------------------------------------
Banking, Finance and Insurance: 18.94%
- -----------------------------------------------------------------------------
AFLAC 1,500 57,187
American International Group 400 34,100
Chubb 200 12,300
Equifax 2,200 85,112
Federal Home Loan 1,900 109,250
Federal National Mortgage 400 28,325
Mercury General 400 17,000
Nationwide Financial Services
Class A 400 16,600
Unum 900 39,994
--------
399,868
--------
- -----------------------------------------------------------------------------
Buildings and Materials: 4.49%
- -----------------------------------------------------------------------------
Masco 2,800 78,925
Premark International 500 15,844
--------
94,769
--------
- -----------------------------------------------------------------------------
Cable, Media and Publishing: 0.93%
- -----------------------------------------------------------------------------
Wallace Computer Services 900 19,688
--------
19,688
--------
- -----------------------------------------------------------------------------
Chemicals: 6.09%
- -----------------------------------------------------------------------------
Crompton & Knowles 800 12,850
Ecolab 2,600 77,675
Hercules 300 9,994
Valspar 1,000 28,062
--------
128,581
--------
- -----------------------------------------------------------------------------
Computers and Technology: 5.43%
- -----------------------------------------------------------------------------
Hewlett-Packard 1,400 84,263
*SunGard Data Systems 900 30,375
--------
114,638
--------
- -----------------------------------------------------------------------------
Electronics and Electrical Equipment: 5.54%
- -----------------------------------------------------------------------------
Intel 400 35,687
Symbol Technologies 1,300 58,175
Teleflex 600 23,213
--------
117,075
--------
<PAGE>
Number Market
of Shares Value
- -----------------------------------------------------------------------------
Energy: 2.98%
- -----------------------------------------------------------------------------
Amoco 600 $ 33,675
Total ADR 500 29,250
--------
62,925
--------
- --------------------------------------------------------------------------------
Food, Beverage and Tobacco: 7.85%
- --------------------------------------------------------------------------------
Campbell Soup 300 15,994
ConAgra 900 27,394
Hannaford Brothers 500 21,906
Philip Morris 1,000 51,125
Ralston-Purina Group 700 23,363
Universal Foods 1,200 26,025
--------
165,807
--------
- --------------------------------------------------------------------------------
Healthcare and Pharmaceuticals: 7.62%
- --------------------------------------------------------------------------------
American Home Products 1,500 73,125
Johnson & Johnson 500 40,750
Mylan Laboratories 800 27,550
Zeneca Group ADR 500 19,500
--------
160,925
--------
- --------------------------------------------------------------------------------
Real Estate: 2.02%
- --------------------------------------------------------------------------------
CarrAmerica Realty 300 6,750
Developers Diversified Realty 400 7,550
Nationwide Health Properties 400 9,225
Storage USA 300 9,131
Sun Communities 300 10,031
--------
42,687
--------
- --------------------------------------------------------------------------------
Retail: 8.36%
- --------------------------------------------------------------------------------
Food Lion Class A 1,500 16,453
Intimate Brands 2,000 44,750
May Department Stores 200 12,200
Rite Aid 2,600 103,187
--------
176,590
--------
- --------------------------------------------------------------------------------
Telecommunications: 4.71%
- --------------------------------------------------------------------------------
ALLTEL 500 23,406
Ericsson (LM)
Telefonaktiebolaget ADR 900 20,391
SBC Communications 1,200 55,575
--------
99,372
--------
- --------------------------------------------------------------------------------
Textiles, Apparel and Furniture: 5.03%
- --------------------------------------------------------------------------------
Hillenbrand Industries 700 41,431
HON Industries 1,500 31,781
40 DELAWARE POOLED TRUST o 1998 ANNUAL REPORT
<PAGE>
Number Market
of Shares Value
- --------------------------------------------------------------------------------
Miller (Herman) 500 $ 11,047
Newell 500 22,000
--------
106,259
--------
- --------------------------------------------------------------------------------
Utilities: 1.54%
- --------------------------------------------------------------------------------
CMS Energy 300 13,219
Edison International 300 7,913
PacifiCorp 600 11,437
--------
32,569
--------
- --------------------------------------------------------------------------------
Miscellaneous: 14.09%
- --------------------------------------------------------------------------------
Federal Signal 2,400 57,750
Pentair 400 15,050
Service International 1,800 64,125
Sherwin-Williams 800 20,150
Stewart Enterprises 2,600 59,881
Tyco International 1,300 80,519
--------
297,475
--------
- --------------------------------------------------------------------------------
Total Common Stock
(cost $1,951,075) 2,066,234
================================================================================
- --------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCK: 1.29%
- --------------------------------------------------------------------------------
Freeport-McMoRan Copper
& Gold 500 7,437
Sealed Air 500 19,938
- --------------------------------------------------------------------------------
Total Convertible Preferred Stock
(cost $28,079) 27,375
================================================================================
Principal
Amount
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 1.00%
- --------------------------------------------------------------------------------
With Chase Manhattan
5.30% 11/02/98 (dated
10/30/98, collateralized
by $7,000 U.S.
Treasury Notes 5.75%
due 10/31/02, market
value $7,529) $7,400 7,400
With J.P. Morgan Securities
5.25% 11/02/98 (dated
10/30/98, collateralized
by $243 U.S.
Treasury Notes 5.625%
due 11/30/00, market
value $256 and $2,000
U.S. Treasury Notes 5.25%
due 01/31/01, market
value $2,411 and $2,000
U.S. Treasury Notes 6.25%
<PAGE>
Principal Market
Amount Value
- --------------------------------------------------------------------------------
due 01/31/02, market
value $2,295 and $2,000
U.S. Treasury Notes 5.50%
due 02/28/03, market
value $1,912) $6,700 $6,700
With PaineWebber
5.30% 11/02/98 (dated
10/30/98, collateralized
by $3,000 U.S.
Treasury Notes 5.625%
due 5/15/01, market
value $2,748 and $2,000
U.S. Treasury Notes 6.50%
due 08/31/01, market
value $2,386 and $2,000
U.S. Treasury Notes 7.50%
due 5/05/02, market
value $1,900) 6,900 6,900
- --------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $21,000) 21,000
================================================================================
- --------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 100.13%
(cost $2,000,154) $2,114,609
================================================================================
LIABILITIES NET OF RECEIVABLES
AND OTHER ASSETS: (0.13%) (2,838)
================================================================================
- --------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
235,295 SHARES ($0.01 PAR VALUE)
OUTSTANDING; EQUIVALENT TO
$8.97 PER SHARE: 100.00% $2,111,771
================================================================================
- --------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 1998:
- --------------------------------------------------------------------------------
Common stock, $0.01 par value,
2,000,000,000 shares authorized
to the Fund with 50,000,000 shares
allocated to this Portfolio $2,000,009
Undistributed net investment income 2,878
Accumulated net realized loss on
investments (5,571)
Net unrealized appreciation of
investments 114,455
- --------------------------------------------------------------------------------
Total Net Assets $2,111,771
================================================================================
*Non-income producing security.
ADR = American Depository Receipt
See accompanying notes
1998 ANNUAL REPORT o DELAWARE POOLED TRUST 41
<PAGE>
- --------------------------------------------------------------------------------
Delaware Pooled Trust, Inc.: The Mid-Cap Growth Equity Portfolio
(formerly The Aggressive Growth Portfolio)
Statement of Net Assets
October 31, 1998
Number Market
of Shares Value
-------------------------------------------------------------------------------
COMMON STOCK: 96.09%
-------------------------------------------------------------------------------
Banking, Finance and Insurance: 14.28%
-------------------------------------------------------------------------------
Ambac Financial Group 2,100 $ 122,194
CIT Group 4,300 117,444
E.W. Blanch Holdings 2,500 97,344
FINOVA Group 2,900 141,375
Financial Security Assurance
Holdings Limited 600 29,888
First American (Tennessee) 2,200 90,750
Mellon Bank 1,000 60,125
Peoples Heritage Financial
Group 2,100 37,669
----------
696,789
----------
-------------------------------------------------------------------------------
Cable, Media and Publishing: 12.57%
-------------------------------------------------------------------------------
*Chancellor Media Class A 5,600 215,075
*Jacor Communications 2,000 110,125
*Lamar Advertising 1,500 46,828
*Snyder Communications 5,400 192,713
*World Color Press 1,600 48,600
----------
613,341
----------
-------------------------------------------------------------------------------
Computers and Technology: 20.86%
-------------------------------------------------------------------------------
*Acxiom 3,700 93,194
*Applied Materials 1,000 34,625
*BMC Software 1,900 91,259
*Citrix Systems 1,400 99,006
*Compuware 2,100 113,728
*DST Systems 900 45,000
*Documentum 700 23,997
*Fore Systems 6,700 104,897
*J.D. Edwards 1,800 58,725
*Legato Systems 1,600 62,500
*Platinum technology 4,700 76,963
*SunGard Data Systems 2,400 81,000
*Teradyne 1,300 42,250
*3Com 1,400 50,531
*Veritas Software 800 40,050
----------
1,017,725
----------
-------------------------------------------------------------------------------
Consumer Products: 5.23%
-------------------------------------------------------------------------------
*Gemstar International Group
Limited 2,400 131,400
*Henry Schein 3,200 123,800
----------
255,200
----------
<PAGE>
Number Market
of Shares Value
- --------------------------------------------------------------------------------
Electronics and Electrical Equipment: 4.73%
- --------------------------------------------------------------------------------
*Novellus Systems 1,100 $ 42,659
*PMC-Sierra 2,600 116,838
*Xilinx 1,600 71,450
----------
230,947
----------
-------------------------------------------------------------------------------
Environmental Services: 1.54%
-------------------------------------------------------------------------------
Waste Management 1,666 75,178
----------
75,178
----------
-------------------------------------------------------------------------------
Food, Beverage and Tobacco: 0.11%
-------------------------------------------------------------------------------
*Aurora Foods 300 5,250
----------
5,250
----------
-------------------------------------------------------------------------------
Healthcare & Pharmaceuticals: 3.75%
-------------------------------------------------------------------------------
*Health Management Associates
Class A 7,882 140,398
*Healthsouth 3,500 42,438
----------
182,836
----------
-------------------------------------------------------------------------------
Leisure, Lodging and Entertainment: 5.76%
-------------------------------------------------------------------------------
*Outback Steakhouse 3,900 135,159
*Papa John's International 2,700 102,516
*Prime Hospitality 2,600 23,725
Royal Caribbean Cruises 700 19,513
----------
280,913
----------
-------------------------------------------------------------------------------
Retail: 10.78%
-------------------------------------------------------------------------------
*Bed Bath & Beyond 6,700 184,459
*CompUSA 3,400 47,175
Food Lion Class A 2,500 27,422
*Kohl's 2,100 100,406
*Staples 5,118 166,815
----------
526,277
----------
-------------------------------------------------------------------------------
Telecommunications: 12.06%
-------------------------------------------------------------------------------
*American Tower Class A 4,900 107,183
*Ascend Communications 900 43,397
*Clear Channel Communications 2,700 123,019
*Global Crossing Limited 1,800 51,469
*Heftel Broadcasting 1,300 53,463
*Network Appliance 1,400 76,038
*Pacific Gateway Exchange 1,800 52,200
*Star Telecommunications 6,200 81,956
----------
588,725
----------
42 DELAWARE POOLED TRUST o 1998 ANNUAL REPORT
<PAGE>
Number Market
of Shares Value
-------------------------------------------------------------------------------
Textiles, Apparel and Furniture: 1.03%
-------------------------------------------------------------------------------
*Jones Apparel Group 2,900 $50,025
----------
50,025
----------
-------------------------------------------------------------------------------
Miscellaneous: 3.39%
Cintas 900 48,038
*Waters 1,600 117,600
----------
165,638
----------
-------------------------------------------------------------------------------
Total Common Stock
(cost $4,257,556) 4,688,844
===============================================================================
Principal
Amount
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 5.33%
- --------------------------------------------------------------------------------
With Chase Manhattan
5.30% 11/02/98 (dated
10/30/98, collateralized
by $86,000 U.S.
Treasury Notes 5.75%
due 10/31/02, market
value $93,217) $91,000 91,000
With J.P. Morgan Securities
5.25% 11/02/98 (dated
10/30/98, collateralized
by $3,000 U.S.
Treasury Notes 5.625%
due 11/30/00, market
value $3,167 and $29,000
U.S. Treasury Notes 5.25%
due 01/31/01, market
value $29,854 and $26,000
U.S. Treasury Notes 6.25%
due 01/31/02, market
value $28,412 and $22,000
U.S. Treasury Notes 5.50%
due 02/28/03, market
value $23,670) 83,600 83,600
With PaineWebber
5.30% 11/02/98 (dated
10/30/98, collateralized
by $32,000 U.S.
Treasury Notes 5.625%
due 05/15/01, market
value $34,024 and $28,000
U.S. Treasury Notes 6.50%
due 08/31/01, market
value $29,535 and $21,000
U.S. Treasury Notes 7.50%
due 05/15/02, market
value $23,529) 85,400 85,400
<PAGE>
Market
Value
- --------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS
(COST $260,000) $ 260,000
================================================================================
- --------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 101.42%
(COST $4,517,556) $4,948,844
================================================================================
- --------------------------------------------------------------------------------
LIABILITIES NET OF RECEIVABLES
AND OTHER ASSETS: (1.42%) (69,346)
================================================================================
- --------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
654,410 SHARES ($0.01 PAR VALUE)
OUTSTANDING; EQUIVALENT TO
$7.46 PER SHARE: 100.00% $4,879,498
================================================================================
- --------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 1998:
- --------------------------------------------------------------------------------
Common stock, $0.01 par value,
2,000,000,000 shares authorized
to the Fund with 50,000,000 shares
allocated to this Portfolio $3,223,858
Undistributed net investment income 7,760
Accumulated net realized gain on
investments 1,216,592
Net unrealized appreciation of
investments 431,288
- --------------------------------------------------------------------------------
Total Net Assets $4,879,498
================================================================================
*Non-income producing security.
See accompanying notes.
1998 ANNUAL REPORT o DELAWARE POOLED TRUST 43
<PAGE>
==============================================================================
Delaware Pooled Trust, Inc.: The Small/Mid-Cap Value Equity Portfolio
Statement of Net Assets
October 31, 1998
Number Market
of Shares Value
- ------------------------------------------------------------------------------
COMMON STOCK: 96.98%
- ------------------------------------------------------------------------------
Automobiles and Automotive Parts: 2.82%
- ------------------------------------------------------------------------------
ITT 1,121 $40,075
Smith (A.O.) 1,800 36,788
-------
76,863
-------
- ------------------------------------------------------------------------------
Banking, Finance and Insurance: 19.98%
- ------------------------------------------------------------------------------
Alfa 1,846 38,707
AmSouth Bancorporation 849 34,013
Astoria Financial 700 30,208
CNB Bancshares 667 28,348
Countrywide Credit 616 26,604
Cullen Frost Bankers 484 25,773
Edwards (A.G.) 788 27,235
Everest Re Holdings 945 32,543
First American (Tennessee) 555 22,894
First Tennessee National 788 24,994
GreenPoint Financial 632 20,738
Harleysville Group 1,311 27,941
Hibernia Class A 1,500 25,031
Mercantile Bankshares 1,500 48,938
North Fork Bancorporation 2,137 42,473
PartnerRe 659 26,195
Peoples Heritage Financial
Group 2,100 37,669
Sovereign Bancorp 1,841 24,106
-------
544,410
-------
- ------------------------------------------------------------------------------
Buildings and Materials: 8.31%
- ------------------------------------------------------------------------------
Armstrong World Industries 858 53,196
D.R. Horton 1,800 28,575
Granite Construction 1,250 41,641
Lennar Corporation 1,100 22,275
Martin Marietta Materials 700 34,344
Owens Corning 1,273 46,226
-------
226,257
-------
- ------------------------------------------------------------------------------
Chemicals: 5.88%
- ------------------------------------------------------------------------------
Beckman Coulter 601 28,247
Crompton & Knowles 2,500 40,156
Georgia Gulf 1,800 30,713
OM Group 1,196 39,020
Solutia 1,000 21,938
-------
160,074
-------
- ------------------------------------------------------------------------------
Electronics and Electrical Equipment: 1.29%
- ------------------------------------------------------------------------------
Symbol Technologies 783 35,039
-------
35,039
-------
<PAGE>
Number Market
of Shares Value
- ------------------------------------------------------------------------------
Energy: 10.46%
- ------------------------------------------------------------------------------
Diamond Offshore Drilling 700 $21,481
Kerr-McGee 983 39,197
Noble Affliates 1,509 49,420
Questar 1,600 31,500
Sun 800 27,450
Transocean Offshore 1,000 36,938
*USEC 3,524 51,538
Valero Energy 1,100 27,500
-------
285,024
-------
- ------------------------------------------------------------------------------
Food, Beverage and Tobacco: 4.17%
- ------------------------------------------------------------------------------
Flowers Industries 2,209 45,285
Interstate Bakeries 1,250 31,328
Universal Foods 1,700 36,869
-------
113,482
-------
- ------------------------------------------------------------------------------
Healthcare and Pharmaceuticals: 4.45%
- ------------------------------------------------------------------------------
Bausch & Lomb 827 34,475
Cambrex 1,497 38,267
Teva Pharmaceutical ADR 1,229 48,353
-------
121,095
-------
- ------------------------------------------------------------------------------
Industrial Machinery: 3.96%
- ------------------------------------------------------------------------------
Hussmann International 2,784 43,326
Milacron 1,191 23,075
Parker Hannifin 1,164 41,613
-------
108,014
-------
- ------------------------------------------------------------------------------
Leisure, Lodging and Entertainment: 2.82%
- ------------------------------------------------------------------------------
Viad 2,800 76,825
-------
76,825
-------
- ------------------------------------------------------------------------------
Metals and Mining: 3.23%
- ------------------------------------------------------------------------------
Freeport-McMoRan Copper
& Gold Class B 3,400 41,863
J&L Specialty Steel 7,608 46,124
-------
87,987
-------
- ------------------------------------------------------------------------------
Paper and Forest Products: 1.32%
- ------------------------------------------------------------------------------
Bowater 882 35,997
-------
35,997
-------
- ------------------------------------------------------------------------------
Real Estate: 12.28%
- ------------------------------------------------------------------------------
AMB Property 1,575 36,225
Equity Office Properties Trust 2,072 49,727
Koger Equity 3,209 54,152
Prentiss Properties Trust 2,536 52,305
44 DELAWARE POOLED TRUST o 1998 ANNUAL REPORT
<PAGE>
Number Market
of Shares Value
- ------------------------------------------------------------------------------
Public Storage 1,477 $39,417
SL Green Realty 2,500 47,344
Stewart Enterprises 2,400 55,275
-------
334,445
-------
- ------------------------------------------------------------------------------
Retail: 3.28%
- ------------------------------------------------------------------------------
Nordstrom 1,015 27,659
Pier 1 Imports 3,620 33,485
Tiffany 870 28,112
-------
89,256
-------
- ------------------------------------------------------------------------------
Textiles, Apparel and Furniture: 4.67%
- ------------------------------------------------------------------------------
Ethan Allen Interiors 1,394 47,918
Stride Rite 8,677 79,178
-------
127,096
-------
- ------------------------------------------------------------------------------
Transportation and Shipping: 2.00%
- ------------------------------------------------------------------------------
ASA Holdings 1,100 39,463
Canadian National Railway 300 15,131
-------
54,594
-------
- ------------------------------------------------------------------------------
Utilities: 6.06%
- ------------------------------------------------------------------------------
Carolina Power and Light 600 27,525
DQE 700 27,606
Illinova 1,877 47,511
Rochester Gas & Electric 1,000 29,125
Unicom 888 33,467
-------
165,234
-------
- ------------------------------------------------------------------------------
Total Common Stock
(cost $2,803,619) 2,641,692
==============================================================================
Principal
Amount
REPURCHASE AGREEMENTS: 2.94%
- ------------------------------------------------------------------------------
With Chase Manhattan
5.30% 11/02/98 (dated
10/30/98, collateralized
by $27,000 U.S.
Treasury Notes 5.75%
due 10/31/02, market
value $28,682) $28,000 28,000
With J.P. Morgan Securities
5.25% 11/02/98 ( dated
10/30/98, collateralized
by $1,000 U.S.
Treasury Notes 5.625%
due 11/30/00, market
value $974 and $9,000
U.S. Treasury Notes 5.25%
<PAGE>
Principal Market
Amount Value
- ------------------------------------------------------------------------------
due 01/31/01, market
value $9,186 and $8,000
U.S. Treasury Notes 6.25%
due 01/31/02, market
value $8,742 and $7,000
U.S. Treasury Notes 5.50%
due 02/28/03, market
value $7,283) $25,700 $25,700
With PaineWebber
5.30% 11/02/98 (dated
10/30/98, collateralized
by $10,000 U.S.
Treasury Notes 5.625%
due 05/15/01, market
value $10,469 and $8,000
U.S. Treasury Notes 6.50%
due 08/31/01, market
value $9,088 and $6,000
U.S. Treasury Notes 7.50%
due 05/15/02, market
value $7,240) 26,300 26,300
- ------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $80,000) 80,000
==============================================================================
- ------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 99.92%
(COST $2,883,619) $2,721,692
==============================================================================
- ------------------------------------------------------------------------------
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES: 0.08% 2,392
==============================================================================
- ------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
352,942 SHARES ($0.01 PAR VALUE)
OUTSTANDING; EQUIVALENT
TO $7.72 PER SHARE: 100.00% $2,724,084
==============================================================================
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 1998:
- ------------------------------------------------------------------------------
Common stock, $0.01 par value,
2,000,000,000 shares authorized
to the Fund with 50,000,000 shares
allocated to this portfolio $3,000,008
Undistributed net investment income 33,701
Accumulated net realized loss on
investments (147,698)
Net unrealized depreciation of
investments (161,927)
- ------------------------------------------------------------------------------
Total Net Assets $2,724,084
==============================================================================
* Non-income producing security.
ADR = American Depository Receipt
See accompanying notes
1998 ANNUAL REPORT o DELAWARE POOLED TRUST 45
<PAGE>
==============================================================================
Delaware Pooled Trust, Inc.: The Small-Cap Growth Equity Portfolio
Statement of Net Assets
October 31, 1998
Number Market
of Shares Value
- ------------------------------------------------------------------------------
COMMON STOCK: 80.50%
- ------------------------------------------------------------------------------
Automobiles and Automotive Parts: 0.47%
- ------------------------------------------------------------------------------
*National Equipment Services 2,000 $15,625
-------
15,625
-------
- ------------------------------------------------------------------------------
Banking, Finance and Insurance: 8.84%
- ------------------------------------------------------------------------------
Ambac Financial Group 1,400 81,462
Capital Re 200 3,663
E.W. Blanch Holdings 1,700 66,194
*NOVA 1,600 46,200
*Profit Recovery Group 2,300 70,294
Webster Financial 400 9,875
Western Bancorp 500 15,625
-------
293,313
-------
- ------------------------------------------------------------------------------
Cable, Media and Publishing: 8.85%
- ------------------------------------------------------------------------------
*Consolidated Graphics 3,500 166,031
*Emmis Broadcasting 1,700 55,834
*Snyder Communications 500 17,844
*USA Networks 2,400 53,925
-------
293,634
-------
- ------------------------------------------------------------------------------
Computers and Technology: 23.87%
- ------------------------------------------------------------------------------
*AnswerThink Consulting Group 4,000 77,500
*Aware 400 4,875
*Bindview Development 7,300 131,171
*BMC Software 1,000 48,031
*Clarify 600 8,138
*CNET 3,200 122,100
*Fore Systems 3,900 61,059
*Gemstar International Group
Limited 1,000 54,750
*GENESYS Telecomm Labs 2,700 71,213
*Hyperion Solutions 2,800 83,913
*Pixar 200 9,488
*Policy Management Systems 500 22,719
*Softworks 1,100 4,950
*SPR 2,100 37,275
*SunGard Data Systems 1,300 43,875
*THQ 500 10,797
-------
791,854
-------
- ------------------------------------------------------------------------------
Electronics and Electrical Equipment: 7.23%
- ------------------------------------------------------------------------------
*Applied Micro Circuits 3,000 71,812
*Mettler-Toledo International 3,000 65,625
*Micrel 1,500 49,219
<PAGE>
Number Market
of Shares Value
- ------------------------------------------------------------------------------
*Novellus Systems 700 $27,147
*Teradyne 800 26,000
-------
239,803
-------
- ------------------------------------------------------------------------------
Healthcare and Pharmaceuticals: 1.20%
- ------------------------------------------------------------------------------
*Coulter Pharmaceuticals 1,400 39,769
-------
39,769
-------
- ------------------------------------------------------------------------------
Leisure, Lodging and Entertainment: 4.86%
- ------------------------------------------------------------------------------
*Foodmaker 400 6,325
*Papa John's International 2,500 94,922
Royal Caribbean Cruises 500 13,938
Ruby Tuesday 1,000 16,875
*Sonic 1,500 29,156
-------
161,216
-------
- ------------------------------------------------------------------------------
Real Estate: 0.37%
- ------------------------------------------------------------------------------
Resource Asset Investment Trust 1,000 12,250
-------
12,250
-------
- ------------------------------------------------------------------------------
Retail: 6.92%
- ------------------------------------------------------------------------------
*American Eagle Outfitters 600 24,318
*Dollar Tree Stores 2,000 76,625
*Hibbett Sporting Goods 1,100 29,734
*Linens 'n Things 3,200 99,000
-------
229,677
-------
- ------------------------------------------------------------------------------
Telecommunications: 15.35%
- ------------------------------------------------------------------------------
*American Tower Class A 3,000 65,625
*GeoTel Communications 3,000 78,094
*Network Appliance 1,500 81,469
*Pacific Gateway Exchange 2,500 72,500
*Star Telecommunications 16,000 211,500
-------
509,188
-------
- ------------------------------------------------------------------------------
Miscellaneous: 2.54%
- ------------------------------------------------------------------------------
*ABR Information Services 800 15,050
*Brookdale Living Communities 2,500 44,687
Protection One 2,200 24,750
-------
84,487
-------
- ------------------------------------------------------------------------------
Total Common Stock
(cost $2,314,471) 2,670,816
==============================================================================
46 DELAWARE POOLED TRUST o 1998 ANNUAL REPORT
<PAGE>
Principal Market
Amount Value
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 22.06%
- ------------------------------------------------------------------------------
With Chase Manhattan
5.30% 11/02/98 (dated
10/30/98, collateralized
by $243,000 U.S.
Treasury Notes 5.75%
due 10/31/02, market
value $262,442) $257,000 $257,000
With J.P. Morgan Securities
5.25% 11/02/98 (dated
10/30/98, collateralized
by $8,000 U.S.
Treasury Notes 5.625%
due 11/30/00, market
value $8,915 and $81,000
U.S. Treasury Notes 5.25%
due 01/31/01, market
value $84,050 and $74,000
U.S. Treasury Notes 6.25%
due 01/31/02, market
value $79,991 and $63,000
U.S. Treasury Notes 5.50%
due 02/28/03, market
value $66,639) 235,000 235,000
With PaineWebber
5.30% 11/02/98 (dated
10/30/98, collateralized
by $90,000 U.S.
Treasury Notes 5.625%
due 05/15/01, market
value $95,791 and
$78,000 U.S.
Treasury Notes 6.50%
due 08/31/01, market
value $83,152 and $58,000
U.S. Treasury Notes 7.50%
due 05/15/02, market
value $66,243) 240,000 240,000
- ------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $732,000) 732,000
==============================================================================
<PAGE>
Market
Value
- ------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITES: 102.56%
(COST $3,046,471) $3,402,816
==============================================================================
- ------------------------------------------------------------------------------
LIABILITIES NET OF RECEIVABLES
AND OTHER ASSETS: (2.56%) (85,011)
==============================================================================
- ------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
352,942 SHARES ($0.01 PAR VALUE)
OUTSTANDING; EQUIVALENT TO
$9.40 PER SHARE: 100.00% $3,317,805
==============================================================================
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 1998:
- ------------------------------------------------------------------------------
Common stock, $0.01 par value,
2,000,000,000 shares authorized
to the Fund with 50,000,000
shares allocated to this Portfolio $3,000,008
Undistributed net investment income 6,558
Accumulated net realized loss on
investments (45,106)
Net unrealized appreciation of
investments 356,345
- ------------------------------------------------------------------------------
Total Net Assets $3,317,805
==============================================================================
* Non-income producing security.
See accompanying notes
1998 ANNUAL REPORT o DELAWARE POOLED TRUST 47
<PAGE>
==============================================================================
Delaware Pooled Trust, Inc.: The Real Estate Investment Trust Portfolio II
Statement of Net Assets
October 31, 1998
Number Market
of Shares Value
- ------------------------------------------------------------------------------
COMMON STOCK: 98.96%
- ------------------------------------------------------------------------------
Hotels/Diversified REITS: 10.75%
- ------------------------------------------------------------------------------
*Catellus Development 12,310 $169,263
Newhall Land & Farming 6,630 154,562
Patriot American Hospitality 13,570 120,434
Starwood Hotels & Resorts
Trust 6,190 175,254
-------
619,513
-------
- ------------------------------------------------------------------------------
MALL REITS: 8.03%
- ------------------------------------------------------------------------------
General Growth Properties 4,360 155,053
Simon Property Group 6,170 184,714
Taubman Centers 9,000 123,188
-------
462,955
-------
- ------------------------------------------------------------------------------
Manufactured Housing REITS: 5.22%
- ------------------------------------------------------------------------------
Chateau Communities 5,180 152,163
Sun Communities 4,440 148,463
-------
300,626
-------
- ------------------------------------------------------------------------------
Multifamily REITS: 17.90%
- ------------------------------------------------------------------------------
Avalon Bay Communities 5,051 162,263
Apartment Investment
& Management 5,590 195,301
Camden Property Trust 6,310 169,581
Equity Residential Properties 3,860 162,120
Essex Property Trust 5,750 180,406
Grove Property Trust 15,755 161,489
---------
1,031,160
---------
- ------------------------------------------------------------------------------
Office/Industrial REITS: 38.02%
- ------------------------------------------------------------------------------
AMB Property 3,880 89,240
Alexandria R.E. Equities 6,400 170,800
Boston Properties 4,100 116,850
Cabot Industrial Trust 7,220 144,400
CarrAmerica Realty 8,490 191,025
Duke Realty Investments 8,040 191,955
Equity Office Properties Trust 8,020 192,480
First Industrial Realty 5,750 147,344
Liberty Property Trust 5,133 118,059
Prentiss Properties Trust 7,475 154,172
Reckson Associates Realty 9,131 207,135
SL Green Realty 8,880 168,165
Spieker Properties 4,440 153,180
Trizec Hahn 7,600 145,825
---------
2,190,630
---------
<PAGE>
Number Market
of Shares Value
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
Retail Strip Center REITS: 16.14%
- ------------------------------------------------------------------------------
Developers Diversified Realty 7,730 $145,904
First Washington 6,300 142,538
JDN Realty 6,775 144,392
Kimco Realty 5,100 203,044
New Plan Excel Realty Trust 7,440 169,260
Pan Pacific Retail Properties 6,690 125,019
---------
930,157
---------
- ------------------------------------------------------------------------------
Self-Storage REITS: 2.90%
- ------------------------------------------------------------------------------
Public Storage 6,270 167,331
---------
167,331
---------
- ------------------------------------------------------------------------------
Total Common Stock
(cost $6,487,348) 5,702,372
==============================================================================
Principal
Amount
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 0.90%
- ------------------------------------------------------------------------------
With Chase Manhattan
5.30% 11/02/98 (dated
10/30/98, collateralized
by $17,000 U.S.
Treasury Notes 5.75%
due 10/31/02, market
value $18,644) $18,300 18,300
With J.P. Morgan Securities
5.25% 11/02/98 (dated
10/30/98 collateralized
by $1,000 U.S.
Treasury Notes 5.625%
due 11/30/00, market
value $633 and $6,000
U.S. Treasury Notes 5.25%
due 01/31/01, market
value $5,971 and $5,000
U.S. Treasury Notes 6.25%
due 01/31/02, market
value $5,682 and $4,000
U.S Treasury Notes 5.50%
due 02/28/03, market
value $4,734) 16,700 16,700
With PaineWebber 5.30% 11/02/98
(dated 10/30/98,
collateralized by
$6,000 U.S.
48 DELAWARE POOLED TRUST o ANNUAL REPORT
<PAGE>
Principal Market
Amount Value
- ------------------------------------------------------------------------------
Treasury Notes 5.625%
due 05/15/01, market
value $6,805 and $6,000 U.S.
Treasury Notes 6.50%
due 08/31/01, market
value $5,907 and $4,000 U.S.
Treasury Notes 7.50%
due 05/15/02, market
value $4,706) $17,000 $17,000
- ------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $52,000) 52,000
==============================================================================
- ------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 99.86%
(COST $6,539,348) $5,754,372
==============================================================================
- ------------------------------------------------------------------------------
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES: 0.14% 8,174
==============================================================================
- ------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
404,891 SHARES ($0.01 PAR VALUE)
OUTSTANDING; EQUIVALENT TO
$14.23 PER SHARE: 100.00% $5,762,546
==============================================================================
- ------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 1998:
- ------------------------------------------------------------------------------
Common stock, $0.01 par value,
2,000,000,000 shares authorized
to the Fund with 50,000,000
shares allocated to this Portfolio $6,569,095
Undistributed net investment income 254,821
Accumulated net realized loss on
investments (276,394)
Net unrealized depreciation of
investments (784,976)
- ------------------------------------------------------------------------------
Total Net Assets $5,762,546
==============================================================================
REIT: Real Estate Investment Trust
* Non-income producing security.
See accompanying notes
<PAGE>
==============================================================================
Delaware Pooled Trust, Inc.:
The Intermediate Fixed Income Portfolio
(formerly The Fixed Income Portfolio)
Statement of Net Assets
October 31, 1998
Principal Market
Amount Value
- ------------------------------------------------------------------------------
ASSET-BACKED SECURITIES: 14.61%
- ------------------------------------------------------------------------------
AFC Home Equity
Loan Trust Series
92-5 A 7.20% 2/15/08 $35,643 $35,874
California Infrastructure
PG and E Series 97-1 A4
6.16% 6/25/03 600,000 606,420
CIT Group Securitization Series
95-2 A2 6.00% 5/15/26 224,109 224,064
CITRV Series 98-A A5
6.12% 7/15/14 435,000 440,915
Countrywide Home
Equity Loan Series 97-1 A4
6.95% 5/25/21 350,000 355,915
EQCC Home Equity Loan
Trust Series 98-2 A3F
6.229% 3/15/13 400,000 400,250
MetLife Capital Equipment
Loan Trust Series 97-A A
6.85% 5/20/08 540,000 560,417
NationsCredit Grantor
Trust Series 96-1 A 5.85%
9/15/11 137,771 138,030
NationsCredit Grantor
Trust Series 97-2 A 6.35%
4/15/14 437,540 446,564
Neiman Marcus Group
Credit Card Master Trust
Series 95-1 A 7.60%
6/15/03 65,000 67,113
Philadelphia, Pennsylvania Authority
for Industrial Development
Series 97 A 6.488% 6/15/04 275,560 274,182
The Money Store Home
Equity Trust Series 97-A A9
7.235% 5/15/28 260,000 267,175
UCFC Home Equity Loan
Series 96-B1 A3
7.30% 4/15/14 125,000 125,238
World Omni Automobile
Lease Securitization Series 97-B A4
6.20% 11/25/03 465,000 471,603
- ------------------------------------------------------------------------------
Total Asset-Backed Securities
(cost $4,351,656) 4,413,760
==============================================================================
1998 ANNUAL REPORT o DELAWARE POOLED TRUST 49
<PAGE>
Principal Market
Amount Value
- ------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS: 17.23%
- ------------------------------------------------------------------------------
Asset Securization Corporation
Series 96-D3 A1B
7.21% 10/13/26 $130,000 $137,130
Asset Securitization Corporation
Series 97-D4 Class A1A
7.35% 4/14/29 174,392 180,877
Asset Securitization Corporation
Series 97-D5 A2
6.8149% 2/14/41 450,000 449,016
Asset Securitization Corporation
Series 97-D5 A3
6.8649% 2/14/41 385,000 377,240
Asset Securitization Corporation
Series 97-MD7 Class A3
7.8424% 1/13/30 400,000 418,813
Capco America Securitization
Series 98-D7 A1B
6.26% 9/16/30 410,000 408,078
Fanniemae Whole Loan
Series 98-W3 A2
6.50% 7/25/28 465,000 472,702
GE Capital Mortgage Services
Series 98-6 1A6
6.75% 4/25/28 365,000 365,970
Lehman Large Loan
Series 97-LLI A1
6.79% 6/12/04 327,498 339,268
Mortgage Capital Funding
Series 96-MC2-C
7.224% 9/20/06 155,000 160,134
Nomura Asset Securities
Series 95-MD3 A1A
8.17% 3/4/20 166,837 173,484
Residential Accredit Loans
Series 96-QS3 A13
7.29% 6/25/26 10,484 10,484
Residential Accredit Loans
Series 97-QS3 A3
7.50% 4/25/27 135,000 136,593
Residential Accredit Loans
Series 98-QS9 A3
6.75% 7/25/28 500,000 504,375
Residential Funding Mortgage
Securities Series 98-S6 A6
6.75% 3/25/28 325,000 322,359
Residential Funding Mortgage
Securities Series 96-S9 A10
7.25% 4/25/26 723,178 750,297
- ------------------------------------------------------------------------------
Total Collateralized Mortgage Obligations
(cost $5,163,436) 5,206,820
==============================================================================
<PAGE>
Principal Market
Amount Value
- ------------------------------------------------------------------------------
CORPORATE BONDS: 28.17%
- ------------------------------------------------------------------------------
Banco Santander-Chile
6.50% 11/1/05 $250,000 $247,105
Banco Santiago S.A.
7.00% 7/18/07 210,000 165,113
Cardinal Health
6.25% 7/15/08 275,000 281,875
Chrysler Financial
6.35% 3/15/99 150,000 150,625
CIT Group Holdings
5.625% 10/15/03 575,000 575,000
Consumers Energy
6.375% 2/1/08 360,000 364,050
Continental
7.25% 3/1/03 500,000 510,625
Continental Airlines
6.80% 1/2/09 475,000 470,844
Cox Communications
6.15% 8/1/03 310,000 317,750
Credit Foncier de France
8.00% 1/14/02 335,000 362,638
General Electric Capital
5.89% 5/11/01 540,000 552,825
Greyhound Financial Medium
Term Note
8.79% 11/15/01 100,000 109,125
HRPT Properties Trust
6.75% 12/18/02 380,000 395,200
Kohls
6.70% 2/1/06 300,000 315,750
MCI Worldcom
7.55% 4/1/04 495,000 539,550
Norwest
6.125% 10/15/00 150,000 153,000
Philip Morris
7.20% 2/1/07 580,000 620,600
Raychem
7.20% 10/15/08 380,000 379,525
Raytheon
5.95% 3/15/01 400,000 405,500
Southern Investments UK
6.375% 11/15/01 100,000 102,000
Summit Bancorp
8.625% 12/10/02 520,000 572,000
Summit Bank
6.75% 6/15/03 80,000 83,800
Transwestern Pipeline
7.55% 1/15/00 400,000 409,500
U.S. Bancorp
8.125% 5/15/02 125,000 134,844
USA Waste Services
6.125% 7/15/01 290,000 291,450
- ------------------------------------------------------------------------------
Total Corporate Bonds
(cost $8,441,152) 8,510,294
==============================================================================
50 DELAWARE POOLED TRUST o 1988 ANNUAL REPORT
<PAGE>
Principal Market
Amount Value
- ------------------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES: 20.96%
- ------------------------------------------------------------------------------
Federal Home Loan
Mortgage Corporation Gold
6.00% 4/1/11 $231,722 $234,039
Federal National
Mortgage Association
6.00% 4/1/13 806,676 810,206
Federal National
Mortgage Association
6.00% 5/1/13 217,181 218,130
Federal National
Mortgage Association
6.00% 10/01/28 1,717,000 1,697,147
Federal National
Mortgage Association
6.00% 11/1/28 650,000 641,469
Federal National
Mortgage Association
7.00% 7/1/28 746,403 763,197
Federal National
Mortgage Association
7.00% 8/1/28 369,311 377,620
Government National
Mortgage Association
6.50% 12/15/23 698,943 711,175
Government National
Mortgage Association
6.50% 1/15/24 630,854 641,894
Government National
Mortgage Association
9.00% 2/15/17 222,075 237,759
- ------------------------------------------------------------------------------
Total Mortgage-Backed Securities
(cost $6,261,035) 6,332,636
==============================================================================
- ------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY
OBLIGATIONS: 12.97%
- ------------------------------------------------------------------------------
Federal National
Mortgage Association
5.625% 3/15/01 3,395,000 3,470,542
Federal National
Mortgage Association
5.75% 4/15/03 430,000 447,064
- ------------------------------------------------------------------------------
Total U.S. Government Agency Obligations
(cost $3,881,935) 3,917,606
==============================================================================
- ------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS: 5.94%
- ------------------------------------------------------------------------------
U.S. Treasury Bonds
6.125% 11/15/27 145,000 163,561
U.S. Treasury Notes
5.375% 2/15/01 575,000 588,530
U.S. Treasury Notes
6.375% 1/15/00 650,000 665,726
<PAGE>
Principal Market
Amount Value
- ------------------------------------------------------------------------------
US Treasury Notes
6.375% 8/15/27 $325,000 $375,199
- ------------------------------------------------------------------------------
Total U.S. Treasury Obligations
(cost $1,781,986) 1,793,016
==============================================================================
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 1.80%
- ------------------------------------------------------------------------------
With Chase Manhattan
5.30% 11/2/98 (dated
10/30/98, collateralized
by $181,000 U.S.
Treasury Notes 5.75%
due 10/31/02, market
value $195,039) 191,000 191,000
With J.P. Morgan Securities
5.25% 11/2/98 (dated
10/30/98, collateralized
by $6,000 U.S.
Treasury Notes 5.625%
due 11/30/00, market
value $6,625 and $60,000
U.S. Treasury Notes 5.25%
due 1/31/01, market
value $62,463 and $55,000
U.S. Treasury Notes 6.25%
due 1/31/02, market
value $59,447 and $47,000
U.S. Treasury Notes 5.50%
due 2/28/03, market
value $49,524) 174,000 174,000
With PaineWebber 5.30% 11/2/98
(dated 10/30/98,
collateralized by $67,000 U.S.
Treasury Notes 5.625%
due 5/15/01, market
value $71,189 and $58,000 U.S.
Treasury Notes 6.50%
due 8/31/01, market
value $61,796 and $43,000 U.S.
Treasury Notes 7.50%
due 5/15/02, market
value $49,229 ) 179,000 179,000
- ------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $544,000) 544,000
==============================================================================
- ------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES:101.68%
(COST $30,425,200) $30,718,132
==============================================================================
- ------------------------------------------------------------------------------
LIABILITIES NET OF RECEIVABLES
AND OTHER ASSETS: (1.68%) (507,403)
==============================================================================
1998 ANNUAL REPORT o DELAWARE POOLED TRUST 51
<PAGE>
- ------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
2,967,149 SHARES ($0.01 PAR VALUE)
OUTSTANDING; EQUIVALENT
TO $10.18 PER SHARE: 100.00% $30,210,729
==============================================================================
- ------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 1998:
- ------------------------------------------------------------------------------
Common stock, $0.01 par value,
2,000,000,000 shares authorized
to the Fund with 50,000,000
shares allocated to this Portfolio $29,505,056
Undistributed net investment income 3,369
Accumulated net realized gain on
investments 409,372
Net unrealized appreciation
of investments 292,932
- ------------------------------------------------------------------------------
Total Net Assets $30,210,729
==============================================================================
See accompanying notes
<PAGE>
==============================================================================
Delaware Pooled Trust, Inc.:
The Aggregate Fixed Income Portfolio
Statement of Net Assets
October 31, 1998
Principal Market
Amount Value
- ------------------------------------------------------------------------------
CORPORATE BONDS: 31.63%
- ------------------------------------------------------------------------------
Banking, Finance and Insurance: 17.84%
- ------------------------------------------------------------------------------
Banco Santander-Chile nts
6.50% 11/01/05 $15,000 $14,826
Chase Manhattan sub nts
7.25% 06/01/07 70,000 74,813
CIT Group Holdings nts
5.625% 10/15/03 40,000 40,000
General Electric Capital
medium term nts
5.89% 05/11/01 35,000 35,831
Southern Investments
United Kingdom unsec sr nts
6.375% 11/15/01 70,000 71,400
Travelers Property Casualty
unsec nts
6.75% 04/15/01 70,000 72,538
U.S. Bank N.A. sub nts
6.50% 02/01/08 70,000 73,938
--------
383,346
--------
- ------------------------------------------------------------------------------
Electronics and Electrical Equipment: 1.16%
- ------------------------------------------------------------------------------
Raychem unsec nts
7.20% 10/15/08 25,000 24,969
--------
24,969
--------
- ------------------------------------------------------------------------------
Environmental Services: 0.93%
- ------------------------------------------------------------------------------
USA Waste Services sr unsec nts
6.125% 07/15/01 20,000 20,100
--------
20,100
--------
- ------------------------------------------------------------------------------
Food, Beverage and Tobacco: 2.49%
- ------------------------------------------------------------------------------
Philip Morris unsec nts
7.20% 02/01/07 50,000 53,500
--------
53,500
--------
- ------------------------------------------------------------------------------
Healthcare and Pharmaceuticals: 0.72%
- ------------------------------------------------------------------------------
Cardinal Health nts
6.25% 7/15/08 15,000 15,375
--------
15,375
--------
- ------------------------------------------------------------------------------
Retail: 3.39%
- ------------------------------------------------------------------------------
Wal-Mart Stores nts
5.875% 10/15/05 70,000 72,800
--------
72,800
--------
52 DELAWARE POOLED TRUST o 1998 ANNUAL REPORT
<PAGE>
Principal Market
Amount Value
- ------------------------------------------------------------------------------
Telecommunications: 5.10%
- ------------------------------------------------------------------------------
Cox Communications nts
6.15% 08/01/03 $35,000 $35,875
MCI Communications
6.125% 04/15/02 35,000 35,613
MCI Worldcom
7.55% 04/01/04 35,000 38,150
--------
109,638
--------
- ------------------------------------------------------------------------------
Total Corporate Bonds
(cost $670,234) 679,728
==============================================================================
- ------------------------------------------------------------------------------
ASSET BACKED SECURITIES: 9.86%
- ------------------------------------------------------------------------------
CITRV Series 98-A A5
6.12% 07/15/14 30,000 30,408
EQCC Home Equity
Loan Trust
Series 98-2 A3 F
6.229% 03/15/13 25,000 25,016
Federal Home Loan
Mortgage Corporation
Series T-11 A5
6.50% 01/25/15 60,000 60,155
MetLife Capital Equipment
Loan Trust
Series 97-A A
6.85% 05/20/08 50,000 51,891
NationsCredit Grantor Trust
Series 96-1 A
5.85% 09/15/11 44,442 44,526
- ------------------------------------------------------------------------------
Total Asset Backed Securities
(cost $210,600) 211,996
==============================================================================
- ------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS: 13.40%
- ------------------------------------------------------------------------------
Asset Securitization
Series 97-D5 A2
6.8149% 02/14/41 30,000 29,934
Capco America Securitization
Series 98-D7 A1B
6.26% 09/16/30 50,000 49,766
Fanniemae Whole Loan
Series 98-W3 A2
6.50% 07/25/28 30,000 30,497
General Electric Capital
Mortgage Services
Series 98-6 1A6
6.75% 04/25/28 50,000 50,133
Lehman Large Loan
Series 97-LLI A1
6.79% 06/12/04 29,328 30,382
Mortgage Capital Funding
Series 96-MC2-C
7.224% 09/20/06 55,000 56,822
<PAGE>
Principal Market
Amount Value
- ------------------------------------------------------------------------------
Residential Accredit Loans
Series 98-QS9 A3
6.75% 07/25/28 $40,000 $40,350
- ------------------------------------------------------------------------------
Total Collateralized Mortgage Obligations
(cost $286,956) 287,884
==============================================================================
- ------------------------------------------------------------------------------
AGENCY MORTGAGE-BACKED
SECURITIES: 34.93%
- ------------------------------------------------------------------------------
Federal Home Loan Mortgage
Corporation Gold
7.50% 03/01/28 70,171 71,992
Federal National
Mortgage Association
5.625% 03/15/01 25,000 25,556
Federal National
Mortgage Association
5.75% 04/15/03 35,000 36,389
Federal National
Mortgage Association
6.00% 05/15/08 5,000 5,301
Federal National
Mortgage Association
6.00% 04/01/13 192,066 192,906
Federal National
Mortgage Association
6.00% 05/01/13 54,295 54,533
Federal National
Mortgage Association
6.00% 10/01/28 202,000 199,664
Federal National
Mortgage Association
6.00% 11/01/28 40,400 39,475
Federal National
Mortgage Association
6.50% 04/01/13 72,977 74,071
Federal National
Mortgage Association
7.00% 07/01/28 49,760 50,880
- ------------------------------------------------------------------------------
Total Agency Mortgage-Backed Securities
(cost $745,941) 750,767
==============================================================================
- ------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS: 9.00%
- ------------------------------------------------------------------------------
U.S. Treasury Bonds
6.125% 11/15/27 125,000 141,000
U.S. Treasury Notes
5.25% 08/15/03 25,000 26,093
U.S. Treasury Notes
5.50% 02/15/08 15,000 16,033
U.S. Treasury Notes
6.375% 01/15/00 10,000 10,242
- ------------------------------------------------------------------------------
Total U.S. Treasury Obligations
(cost $186,888) 193,368
==============================================================================
1998 ANNUAL REPORT o DELAWARE POOLED TRUST 53
<PAGE>
Principal Market
Amount Value
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 3.16%
- ------------------------------------------------------------------------------
With Chase Manhattan
5.30% 11/02/98 (dated
10/30/98, collateralized
by $23,000 U.S. Treasury Notes
5.75% due 10/31/02, market
value $24,380) $23,900 $23,900
With J.P. Morgan Securities
5.25% 11/02/98 (dated
10/30/98, collateralized
by $1,000 U.S.
Treasury Notes 5.625%
due 11/30/00, market
value $828 and $8,000
U.S. Treasury Notes 5.25%
due 01/31/01, market
value $7,808 and $7,000
U.S. Treasury Notes 6.25%
due 01/31/02, market
value $7,431 and $6,000
U.S. Treasury Notes 5.50%
due 02/28/03, market
value $6,191) 21,800 21,800
With PaineWebber 5.30% 11/02/98
(dated 10/30/98, collateralized
by $8,000 U.S. Treasury Notes
5.625% due 05/15/01, market
value $8,899 and $7,000 U.S.
Treasury Notes 6.50%
due 08/31/01, market
value $7,725 and $5,000 U.S.
Treasury Notes 7.50% 05/15/02,
market value $6,154) 22,300 22,300
- ------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $68,000) 68,000
==============================================================================
<PAGE>
Market
Value
- ------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 101.98%
(COST $2,168,619) $2,191,743
==============================================================================
- ------------------------------------------------------------------------------
LIABILITIES NET OF RECEIVABLES
AND OTHER ASSETS: (1.98%) (42,500)
==============================================================================
- ------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
235,295 SHARES ($0.01 PAR VALUE)
OUTSTANDING; EQUIVALENT TO
$9.13 PER SHARE: 100.00% $2,149,243
==============================================================================
- ------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 1998:
- ------------------------------------------------------------------------------
Common stock, $0.01 par value,
2,000,000,000 shares authorized
to the Fund with 50,000,000
shares allocated to this Portfolio $2,000,009
Undistributed net investment income 97,533
Accumulated net realized gain on
investments 28,577
Net unrealized appreciation of
investments 23,124
- ------------------------------------------------------------------------------
Total net assets $2,149,243
==============================================================================
nts-notes
sr-senior
sub-subordinated
unsec-unsecured
See accompanying notes
54 DELAWARE POOLED TRUST o 1998 ANNUAL REPORT
<PAGE>
- ------------------------------------------------------------------------------
Delaware Pooled Trust, Inc.: The High-Yield Bond Portfolio
Statement of Net Assets
October 31, 1998
Principal Market
Amount Value
- ------------------------------------------------------------------------------
CORPORATE BONDS: 92.89%
- ------------------------------------------------------------------------------
Aerospace and Defense: 1.10%
- ------------------------------------------------------------------------------
Roller Bearing sr sub nts
9.625% 6/15/07 $250,000 $227,500
--------
227,500
--------
- ------------------------------------------------------------------------------
Automobiles and Automotive Parts: 5.81%
- ------------------------------------------------------------------------------
Numatics sr sub nts
9.625% 4/1/08 275,000 258,500
Prestolite Electric sr nts
9.625% 2/1/08 425,000 386,750
Talon Automotive Group
sr sub nts 9.625% 5/1/08 575,000 558,469
---------
1,203,719
---------
- ------------------------------------------------------------------------------
Buildings and Materials: 4.27%
- ------------------------------------------------------------------------------
American Builders and Contractors
sr unsec sub nts
10.625% 5/15/07 125,000 116,250
Collins & Aikman sr sub nts
10.00% 1/15/07 400,000 405,000
Henry sr nts
10.00% 4/15/08 375,000 363,750
-------
885,000
-------
- ------------------------------------------------------------------------------
Cable, Media and Publishing: 4.97%
- ------------------------------------------------------------------------------
Classic Cable sr sub nts
9.875% 8/1/08 575,000 580,750
Pathnet units
12.25% 4/15/08 600,000 448,500
---------
1,029,250
---------
- ------------------------------------------------------------------------------
Chemicals: 7.72%
- ------------------------------------------------------------------------------
Octel Developments sr nts
10.00% 5/1/06 575,000 559,906
Philipp Brothers sr sub nts
9.875% 6/1/08 550,000 512,188
Precise Technology
unsec sr sub nts
11.125% 6/15/07 250,000 236,875
Sterling Chemicals sr sub nts
11.750% 8/15/06 375,000 288,750
---------
1,597,719
---------
- ------------------------------------------------------------------------------
Computers and Technology: 0.24%
- ------------------------------------------------------------------------------
**DecisionOne Holdings units
11.50% 8/1/08 175,000 49,000
------
49,000
------
<PAGE>
Principal Market
Amount Value
- ------------------------------------------------------------------------------
Consumer Products: 7.81%
- ------------------------------------------------------------------------------
AAI Fostergrant sr nts
10.75% 7/15/06 $750,000 $704,063
Doskocil Manufacturing
sr sub nts 10.125% 9/15/07 275,000 281,531
Fedders North America
sr sub nts 9.375% 8/15/07 275,000 266,750
Riddell Sports sr unsec sub nts
10.50% 7/15/07 250,000 234,688
William Carter sr sub nts
10.375% 12/1/06 125,000 129,531
---------
1,616,563
---------
- ------------------------------------------------------------------------------
Electronics and Electrical Equipment: 2.44%
- ------------------------------------------------------------------------------
Fairchild Semiconductor
sr sub nts 10.125% 3/15/07 250,000 227,500
Insilco sr sub nts
10.25% 8/15/07 275,000 277,750
---------
505,250
---------
- ------------------------------------------------------------------------------
Energy: 4.42%
- ------------------------------------------------------------------------------
Dailey International sr sub nts
9.50% 2/15/08 600,000 288,000
Panaco unsec sr sub nts
10.625% 10/1/04 250,000 212,500
Rutherford-Moran Oil
sr sub nts 10.75% 10/1/04 275,000 242,000
TransAmerican Energy
sr nts 11.50% 6/15/02 455,000 172,900
---------
915,400
---------
- ------------------------------------------------------------------------------
Environmental Services: 1.68%
- ------------------------------------------------------------------------------
Hydrochem Industrial Services
sr sub nts 10.375% 8/1/07 350,000 347,813
---------
347,813
---------
- ------------------------------------------------------------------------------
Food, Beverage and Tobacco: 4.25%
- ------------------------------------------------------------------------------
Community Distributors
sr nts 10.25% 10/15/04 275,000 262,281
DiGiorgio sr nts
10.00% 6/15/07 400,000 372,000
Duane Reade unsec sr sub nts
9.25% 2/15/08 250,000 245,625
---------
879,906
---------
- ------------------------------------------------------------------------------
Healthcare and Pharmaceuticals: 1.86%
- ------------------------------------------------------------------------------
Pueblo Xtra International
sr nts 9.50% 8/1/03 400,000 386,000
---------
386,000
---------
1998 ANNUAL REPORT O DELAWARE POOLED TRUST 55
<PAGE>
Principal Market
Amount Value
- ------------------------------------------------------------------------------
Industrial Machinery: 7.97%
- ------------------------------------------------------------------------------
Anthony Crane Rentals sr nts
10.375% 8/1/08 $350,000 $325,938
Brand Scaffold Services sr nts
10.25% 2/15/08 300,000 295,125
Burke Industries unsec sr nts
10.00% 8/15/07 275,000 258,500
Jackson Products sr sub nts
9.50% 4/15/05 375,000 357,656
Morris Materials sr nts
9.50% 4/1/08 600,000 414,000
---------
1,651,219
---------
- ------------------------------------------------------------------------------
Leisure, Lodging and Entertainment: 6.79%
- ------------------------------------------------------------------------------
Silver Cinemas sr sub nts
10.50% 4/15/05 525,000 498,750
Town Sports International
unsec sr nts 9.75% 10/15/04 475,000 446,500
United Artists sr sub nts
9.75% 4/15/08 500,000 460,000
---------
1,405,250
---------
- ------------------------------------------------------------------------------
Metals and Mining: 6.65%
- ------------------------------------------------------------------------------
Anchor Lamina sr sub nts
9.875% 2/1/08 375,000 296,250
Keystone Consolidated Industries
sr nts 9.625% 8/1/07 425,000 383,031
Schuff Steel sr nts
10.50% 6/1/08 575,000 471,500
WHX sr nts
10.50% 4/15/05 250,000 226,875
---------
1,377,656
---------
- ------------------------------------------------------------------------------
Paper and Forest Products: 4.68%
- ------------------------------------------------------------------------------
Republic Group sr sub nts
9.50% 7/15/08 575,000 521,094
US Office Products sr sub nts
9.75% 6/15/08 575,000 448,500
---------
969,594
---------
- ------------------------------------------------------------------------------
Retail: 1.24%
- ------------------------------------------------------------------------------
Leslie's Poolmart sr nts
10.375% 7/15/04 250,000 256,875
---------
256,875
---------
- ------------------------------------------------------------------------------
Telecommunications: 7.03%
- ------------------------------------------------------------------------------
CBS Radio sub debs
11.375% 1/15/09 3,600 4,158
ITC Deltacom sr nts
9.75% 11/15/08 425,000 425,000
<PAGE>
Principal Market
Amount Value
- ------------------------------------------------------------------------------
**MetroNet Communications
sr disc nts 9.95% 6/15/08 $550,000 $308,000
**NEXTEL Communications
sr disc nts 10.65% 9/15/07 600,000 348,000
**Viatel units
12.50% 4/15/08 650,000 370,500
---------
1,455,658
---------
- ------------------------------------------------------------------------------
Textiles, Apparel and Furniture: 2.10%
- ------------------------------------------------------------------------------
Dyersburg unsec sr sub nts
9.75% 9/1/07 275,000 211,750
Galey & Lord sr sub nts
9.125% 3/1/08 250,000 223,750
---------
435,500
---------
- ------------------------------------------------------------------------------
Transportation and Shipping: 3.22%
- ------------------------------------------------------------------------------
American Commercial Lines
bonds 10.25% 6/30/98 525,000 509,905
American Reefer 1st pfd mtg nts
10.25% 3/1/08 200,000 156,000
---------
665,905
---------
- ------------------------------------------------------------------------------
Miscellaneous: 6.64%
- ------------------------------------------------------------------------------
ATC Group Services company
guarantee nts
12.00% 1/15/08 350,000 262,500
CEX Holdings sr sub nts
9.625% 6/1/08 575,000 543,376
Les sr sub nts 9.25% 6/1/08 575,000 568,531
---------
1,374,407
---------
- ------------------------------------------------------------------------------
Total Corporate Bonds
(cost $21,566,500) 19,235,184
- ------------------------------------------------------------------------------
Number
of Shares
- ------------------------------------------------------------------------------
PREFERRED STOCK: 3.23%
- ------------------------------------------------------------------------------
Telecommunications: 3.23%
- ------------------------------------------------------------------------------
21st Century
Telecommunications 665 668,740
- ------------------------------------------------------------------------------
Total Preferred Stock
(cost $633,567) 668,740
==============================================================================
- ------------------------------------------------------------------------------
**21st Century
Telecommunications 600 18,000
**Pathnet 600 6,000
- ------------------------------------------------------------------------------
Total Warrants
(cost $34,500) 24,000
==============================================================================
56 DELAWARE POOLED TRUST O 1998 ANNUAL REPORT
<PAGE>
Principal Market
Amount Value
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 3.47%
- ------------------------------------------------------------------------------
With Chase Manhattan
5.30% 11/02/98 (dated
10/30/98, collateralized
by $238,000 U.S.
Treasury Notes 5.75%
due 10/31/02, market
value $257,422) $252,000 $252,000
With J.P. Morgan Securities
5.25% 11/02/98 (dated
10/30/98, collateralized
by $8,000 U.S.
Treasury Notes 5.625%
due 11/30/00, market
value $8,745 and $80,000
U.S. Treasury Notes 5.25%
due 01/31/01, market
value $82,443 and $62,000
U.S. Treasury Notes 5.50%
due 02/28/03, market
value $65,364 and $73,000
U.S. Treasury Notes 6.25%
due 01/31/02, market
value $78,461) 230,000 230,000
With PaineWebber 5.30% 11/02/98
(dated 10/30/98, collateralized
by $89,000 U.S. Treasury
Notes 5.625% due 05/15/01,
market value $93,959 and $76,000 U.S.
Treasury Notes 6.50% due
08/31/01, market
value $81,562 and
$57,000 U.S. Treasury Notes
7.50% due 05/15/02, market
value $64,976) 236,000 236,000
- ------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $718,000) 718,000
==============================================================================
- ------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 99.71%
(COST $22,952,567) $20,645,924
==============================================================================
- ------------------------------------------------------------------------------
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES: 0.29% 59,643
==============================================================================
NET ASSETS APPLICABLE TO
2,055,362 SHARES ($0.01 PAR VALUE)
OUTSTANDING; EQUIVALENT TO
$10.07 PER SHARE: 100.00% $20,705,567
==============================================================================
<PAGE>
- ------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 1998:
- ------------------------------------------------------------------------------
Common stock, $0.01 par value,
2,000,000,000 shares authorized
to the Fund with 50,000,000
shares allocated to this Portfolio $21,970,113
Undistributed net investment income 669,180
Accumulated net realized gain on
investments 372,917
Net unrealized depreciation of
investments (2,306,643)
- ------------------------------------------------------------------------------
Total Net Assets $20,705,567
==============================================================================
* Non-income producing security.
** Zero coupon security as of October 31, 1998. The coupon shown is the step
up rate.
debs-debentures
disc-discount
mtg-mortgage
nts-notes
pfd-preferred
sr-senior
sub-subordinate
unsec-unsecured
See accompanying notes
1998 ANNUAL REPORT O DELAWARE POOLED TRUST 57
<PAGE>
==============================================================================
Delaware Pooled Trust, Inc.: The Diversified Core Fixed Income Portfolio
Statement of Net Assets
October 31, 1998
Principal Market Value
Amount* (U.S.$)
- ------------------------------------------------------------------------------
ASSET-BACKED SECURITIES: 4.77%
- ------------------------------------------------------------------------------
MBNA Master Credit
Card Trust Series 98-J A
5.25% 2/15/06 $50,000 $49,975
MetLife Capital Equipment
Loan Trust Series 97-A A
6.85% 5/20/08 50,000 51,891
The Money Store Home
Equity Trust Series 97-A A9
7.235% 5/15/28 50,000 51,380
- ------------------------------------------------------------------------------
Total Asset-Backed Securities
(cost $151,912) 153,246
==============================================================================
- ------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS: 3.89%
- ------------------------------------------------------------------------------
Asset Securitization
Series 97-D5 A2
6.8149% 2/14/41 50,000 49,891
Capco America Securitization
Series 98-D7 A1B 25,000 24,883
Residential Accredit Loans
Series 98-QS9 A3
6.75% 7/25/28 50,000 50,438
- ------------------------------------------------------------------------------
Total Collateralized Mortgage Obligations
(cost $126,537) 125,212
==============================================================================
- ------------------------------------------------------------------------------
CORPORATE BONDS: 42.03%
- ------------------------------------------------------------------------------
Banking, Finance and Insurance: 9.72%
- ------------------------------------------------------------------------------
Chase Manhattan sub nts
7.25% 6/01/07 50,000 53,438
CNA Financial nts
6.25% 11/15/03 50,000 50,125
Continental nts
7.25% 3/01/03 50,000 51,063
Southern Investments
United Kingdom unsec sr nts
6.375% 11/15/01 50,000 51,000
Summit Bancorp sub nts
8.625% 12/10/02 50,000 55,000
Travelers Property Casualty
unsec nts
6.75% 4/15/01 50,000 51,813
-------
312,439
-------
- -----------------------------------------------------------------------------
Building and Materials: 3.02%
- -----------------------------------------------------------------------------
Henry sr nts
10.00% 4/15/08 100,000 97,000
------
97,000
------
<PAGE>
Principal Market Value
Amount* (U.S.$)
- ------------------------------------------------------------------------------
Cable, Media and Publishing: 3.14%
- ------------------------------------------------------------------------------
Classic Cable sr sub nts
9.875% 8/01/08 $100,000 $101,000
-------
101,000
-------
- ------------------------------------------------------------------------------
Chemicals: 4.41%
- ------------------------------------------------------------------------------
Octel Developments sr nts
10.00% 5/01/06 50,000 48,688
Philipp Brothers sr sub nts
9.875% 6/01/08 100,000 93,125
-------
141,813
-------
- ------------------------------------------------------------------------------
Electronics and Electrical Equipment: 1.60%
- ------------------------------------------------------------------------------
Sony unsec unsub nts
6.125% 3/04/03 50,000 51,438
-------
51,438
-------
- ------------------------------------------------------------------------------
Industrial Machinery: 5.04%
- ------------------------------------------------------------------------------
Anthony Crane sr nts
10.375% 8/01/08 100,000 93,125
Morris Materials Handling
unsec sr nts
9.50% 4/01/08 100,000 69,000
-------
162,125
-------
- ------------------------------------------------------------------------------
Metals and Mining: 5.10%
- ------------------------------------------------------------------------------
Schuff Steel unsec sr nts
10.50% 6/01/08 200,000 164,000
-------
164,000
-------
- ------------------------------------------------------------------------------
Paper and Forest Products: 5.24%
- ------------------------------------------------------------------------------
Republic Group sr sub nts
9.50% 7/15/08 100,000 90,625
U.S. Office Products sr sub nts
9.75% 6/15/08 100,000 78,000
-------
168,625
-------
- ------------------------------------------------------------------------------
Telecommunications: 1.74%
- ------------------------------------------------------------------------------
+MetroNet Communications
sr disc nts
9.95% 6/15/08 100,000 56,000
-------
56,000
-------
- ------------------------------------------------------------------------------
Transportation and Shipping: 3.02%
- ------------------------------------------------------------------------------
American Commercial Lines nts
10.25% 6/30/08 100,000 97,125
-------
97,125
-------
- ------------------------------------------------------------------------------
Total Corporate Bonds
(cost $1,473,950) $1,351,565
==============================================================================
58 DELAWARE POOLED TRUST O 1998 ANNUAL REPORT
<PAGE>
Principal Market Value
Amount* (U.S.$)
- ------------------------------------------------------------------------------
FOREIGN BONDS: 18.99%
- ------------------------------------------------------------------------------
Australia: 2.82%
Australian Government
6.75% 11/15/06 A$ 20,000 14,038
Australian Government
7.00% 4/15/00 30,000 19,424
Queensland Treasury Global
8.00% 8/14/01 53,000 35,978
Queensland Treasury
Government Agency
8.00% 7/14/99 33,000 21,079
-------
90,519
-------
- ------------------------------------------------------------------------------
Canada: 4.51%
- ------------------------------------------------------------------------------
Government of Canada
4.25% 12/01/21 C$ 43,000 28,734
Government of Canada
4.75% 9/15/99 25,000 16,247
Government of Canada
6.00% 6/1/08 30,000 20,841
Government of Canada
7.25% 6/01/03 25,000 17,824
Government of Canada
7.50% 9/1/00 20,000 13,628
Government of Canada
7.50% 3/1/01 55,000 37,887
Government of Canada
10.25% 3/15/14 10,000 9,841
-------
145,002
-------
- ------------------------------------------------------------------------------
Germany: 2.95%
- ------------------------------------------------------------------------------
Bundesrepublik
Deutschland
6.00% 1/4/07 Dem 140,000 95,012
-------
95,012
-------
- ------------------------------------------------------------------------------
Japan: 0.93%
- ------------------------------------------------------------------------------
International Bank
of Reconstruction
& Development
5.25% 3/20/02 Jpy 3,000,000 30,042
-------
30,042
-------
- ------------------------------------------------------------------------------
Netherlands: 1.80%
- ------------------------------------------------------------------------------
Netherlands Government
7.50% 1/15/23 Nlg 49,000 34,768
Netherlands Government
9.00% 5/15/00 40,000 23,175
-------
57,943
-------
- ------------------------------------------------------------------------------
New Zealand: 2.42%
- ------------------------------------------------------------------------------
Government of
New Zealand
8.00% 4/15/04 NZ$ 85,000 50,687
Government of
New Zealand
10.00% 3/15/02 NZ$ 44,500 $26,965
-------
77,652
-------
<PAGE>
Principal Market Value
Amount* (U.S.$)
- ------------------------------------------------------------------------------
Sweden: 2.93%
- ------------------------------------------------------------------------------
Swedish Government
5.50% 4/12/02 Sk 100,000 13,403
Swedish Government
8.00% 8/15/07 100,000 15,987
Swedish Government
9.00% 4/20/09 200,000 34,819
Swedish Government
10.25% 5/05/00 100,000 13,956
Swedish Government
10.25% 5/05/03 100,000 15,966
------
94,131
------
- ------------------------------------------------------------------------------
Switzerland: 0.63%
- ------------------------------------------------------------------------------
Government of Switzerland
4.50% 7/08/02 Chf 25,000 20,318
------
20,318
------
- ------------------------------------------------------------------------------
Total Foreign Bonds
(cost $595,669) 610,619
==============================================================================
- ------------------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES: 24.86%
- ------------------------------------------------------------------------------
Federal National
Mortgage Association
5.625% 3/15/01 $50,000 51,113
Federal National
Mortgage Association
6.00% 5/15/08 155,000 164,346
Government National
Mortgage Association
6.50% 1/15/28 421,742 426,751
Government National
Mortgage Association
9.00% 7/15/21 146,861 157,233
- ------------------------------------------------------------------------------
Total Mortgage-Backed Securities
(cost $790,384) 799,443
==============================================================================
- ------------------------------------------------------------------------------
U.S. Treasury Obligations: 1.62%
- ------------------------------------------------------------------------------
U.S. Treasury Notes
5.875% 11/30/01 50,000 52,186
- ------------------------------------------------------------------------------
Total U.S. Treasury Obligations
(cost $50,734) 52,186
==============================================================================
1998 ANNUAL REPORT O DELAWARE POOLED TRUST 59
<PAGE>
Principal Market Value
Amount* (U.S.$)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 2.42%
- ------------------------------------------------------------------------------
With Chase Manhattan
5.30% 11/02/98 (dated
10/30/98, collateralized
by $26,000 U.S.
Treasury Notes 5.75%
due 10/31/02, market
value $27,965) $27,300 $27,300
With J.P. Morgan Securities
5.25% 11/02/98 (dated
10/30/98, collateralized
by $1,000 U.S.
Treasury Notes 5.625%
due 11/30/00, market
value $950 and $9,000
U.S. Treasury Notes 5.25%
due 1/31/01, market
value $8,956 and $8,000
U.S. Treasury Notes 6.25%
due 1/31/02, market
value $8,524 and $7,000
U.S. Treasury Notes 5.50%
due 2/28/03, market
value $7,101) 25,000 25,000
With PaineWebber 5.30%
11/02/98 (dated 10/30/98,
collateralized by $10,000 U.S.
Treasury Notes 5.625% due
05/15/01, market value $10,207
and $8,000 U.S. Treasury Notes
6.50% due 8/31/01, market value
$8,860 and $6,000 U.S. Treasury
Notes 7.50% due 5/15/02, market
value $7,059) 25,700 25,700
- ------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $78,000) 78,000
==============================================================================
- ------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 98.58%
(COST $3,267,186) $3,170,271
==============================================================================
- ------------------------------------------------------------------------------
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES: 1.42% 45,598
==============================================================================
NET ASSETS APPLICABLE TO
352,942 SHARES ($0.01 PAR VALUE)
OUTSTANDING; EQUIVALENT TO
$9.11 PER SHARE: 100.00% $3,215,869
==============================================================================
<PAGE>
- ------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 1998:
- ------------------------------------------------------------------------------
Common stock, $0.01 par value,
2,000,000,000 shares authorized
to the Fund with 50,000,000
shares allocated to this Portfolio $3,000,009
Undistributed net investment income** 193,003
Accumulated net realized gain on
investments 119,205
Net unrealized depreciation of
investments and foreign currencies (96,348)
- ------------------------------------------------------------------------------
Total Net Assets $3,215,869
==============================================================================
*Principal amount is stated in the currency in which each bond is denominated.
A$ = Australian Dollars
C$ = Canadian Dollars
Chf = Swiss Francs
Dem = German Deutsche Marks
Jpy = Japanese Yen
Nlg = Dutch Guilders
NZ$ = New Zealand Dollars
Sk = Swedish Kroner
$ = U.S. Dollars
**Undistributed net investment income includes net realized gains (losses) on
foreign currencies. Net realized gains (losses) on foreign currencies are
treated as net investment income in accordance with provisions of the Internal
Revenue Code.
+ Zero coupon security as of October 31, 1998. The coupon shown is the step
up rate.
disc = discount
nts = notes
sr = senior
sub = subordinated
unsec = unsecured
unsub = unsubordinated
See accompanying notes
60 DELAWARE POOLED TRUST O 1998 ANNUAL REPORT
<PAGE>
==============================================================================
Delaware Pooled Trust, Inc.: The Global Equity Portfolio
Statement of Net Assets
October 31, 1998
Number Market Value
of Shares (U.S.$)
- ------------------------------------------------------------------------------
COMMON STOCK: 96.68%
- ------------------------------------------------------------------------------
Australia: 8.03%
- ------------------------------------------------------------------------------
Amcor Limited 11,300 $47,098
CSR Limited 20,000 45,673
Foster's Brewing Group 32,500 79,694
National Australia Bank 3,900 51,588
Orica Limited 4,400 24,220
-------
248,273
-------
- ------------------------------------------------------------------------------
Belgium: 2.44%
- ------------------------------------------------------------------------------
Electrabel 205 75,503
-------
75,503
-------
- ------------------------------------------------------------------------------
France: 4.90%
- ------------------------------------------------------------------------------
Alcatel Alsthom 210 23,437
Compagnie de Saint Gobain 250 37,052
Elf Aquitaine 500 57,967
Societe Generale 250 33,130
-------
151,586
-------
- ------------------------------------------------------------------------------
Germany: 9.00%
- ------------------------------------------------------------------------------
Bayer 1,700 68,606
Bayerische Vereinsbank 900 71,826
RWE 1,150 61,880
Siemens 1,250 76,028
-------
278,340
-------
- ------------------------------------------------------------------------------
Hong Kong: 1.93%
- ------------------------------------------------------------------------------
Hong Kong Electric 8,500 31,171
Wharf Holdings 18,000 28,588
-------
59,759
-------
- ------------------------------------------------------------------------------
Japan: 3.36%
- ------------------------------------------------------------------------------
Canon Electronics 1,000 18,984
Eisai Limited 1,000 15,738
Koito Manufacturing 6,000 24,537
West Japan Railway 10 44,770
-------
104,029
-------
- ------------------------------------------------------------------------------
Malaysia: 0.53%
- ------------------------------------------------------------------------------
Sime Darby Berhad 30,000 16,331
-------
16,331
-------
- ------------------------------------------------------------------------------
Netherlands: 1.27%
- ------------------------------------------------------------------------------
Royal Dutch Petroleum 810 39,140
-------
39,140
-------
<PAGE>
Number Market Value
of Shares (U.S.$)
- ------------------------------------------------------------------------------
New Zealand: 2.42%
- ------------------------------------------------------------------------------
Carter Holt Harvey 17,500 $14,266
Telecom Corporation of
New Zealand IR 3,161 6,158
Telecom Corporation of
New Zealand 13,300 54,563
-------
74,987
-------
- ------------------------------------------------------------------------------
Spain: 2.96%
- ------------------------------------------------------------------------------
Iberdrola 2,300 37,189
Telefonica de Espana 1,200 54,243
-------
91,432
-------
- ------------------------------------------------------------------------------
United Kingdom: 22.38%
- ------------------------------------------------------------------------------
Associated British Food 4,300 41,198
Bass 4,643 56,304
Blue Circle Industries 9,800 53,554
Boots 6,100 92,162
Cable & Wireless 8,200 92,505
GKN 7,200 86,531
Glaxo Wellcome 3,600 111,736
PowerGen 6,800 96,587
Taylor Woodrow 21,500 61,581
-------
692,158
-------
- ------------------------------------------------------------------------------
United States: 37.46%
- ------------------------------------------------------------------------------
American Home Products 1,400 68,250
Aon 800 49,600
BankAmerica 905 51,997
BankBoston 1,400 51,538
Bausch & Lomb 1,000 41,688
Baxter International 900 53,944
Browning Ferris 1,500 53,156
duPont (E.I.) deNemours 800 46,000
Federal National Mortgage 900 63,731
First Union 900 52,200
Ford Motor 800 43,400
Fortune Brands 1,600 52,900
GTE 1,000 58,688
Hewlett-Packard 1,000 60,188
Jardine Matheson Holdings
Limited 8,800 24,640
May Department Stores 1,000 61,000
McGraw-Hill 800 71,950
Philip Morris 1,400 71,575
Pitney Bowes 1,400 77,088
USX-Marathon Group 1,700 55,569
Williams 1,800 49,388
---------
1,158,490
---------
1998 ANNUAL REPORT O DELAWARE POOLED TRUST 61
<PAGE>
Number Market Value
of Shares (U.S.$)
- ------------------------------------------------------------------------------
Total Common Stock
(cost $3,019,228) $2,990,028
==============================================================================
- ------------------------------------------------------------------------------
WARRANTS: 0.00%
- ------------------------------------------------------------------------------
Hong Kong: 0.00%
- ------------------------------------------------------------------------------
*Wharf Holdings 900 106
- ------------------------------------------------------------------------------
Total Warrants
(cost $0) 106
==============================================================================
Principal
Amount
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 1.78%
- ------------------------------------------------------------------------------
With Chase Manhattan
5.30% 11/02/98 (dated
10/30/98, collateralized
by $18,000 U.S.
Treasury Notes 5.75%
due 10/31/02, market
value $19,719) $19,300 19,300
With J.P. Morgan Securities
5.25% 11/02/98 (dated
10/30/98, collateralized
by $1,000 U.S.
Treasury Notes 5.625%
due 11/30/00, market
value $670 and $6,000
U.S. Treasury Notes 5.25%
due 01/31/01, market
value $6,315 and $6,000
U.S. Treasury Notes 6.25%
due 01/31/02, market
value $6,010 and $5,000
U.S. Treasury Notes 5.50%
due 02/28/03, market
value $5,007) 17,700 17,700
With PaineWebber 5.30%
11/02/98 (dated 10/30/98,
collateralized by $7,000 U.S.
Treasury Notes 5.625% due
05/15/01, market value $7,197
and $6,000 U.S. Treasury Notes
6.50% due 08/31/01, market value
$6,248 and $4,000 U.S. Treasury
Notes 7.50% due 05/15/02, market
value $4,977) 18,000 18,000
- ------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $55,000) 55,000
==============================================================================
<PAGE>
- ------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 98.46%
(COST $3,074,228) $3,045,134
==============================================================================
- ------------------------------------------------------------------------------
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES: 1.54% 47,420
==============================================================================
- ------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
354,722 SHARES ($0.01 PAR VALUE)
OUTSTANDING; EQUIVALENT
TO $8.72 PER SHARE: 100.00% $3,092,554
==============================================================================
- ------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 1998:
- ------------------------------------------------------------------------------
Common stock, $0.01 par value,
2,000,000,000 shares authorized
to the Fund with 50,000,000
shares allocated to this Portfolio $3,024,628
Undistributed net investment income** 53,787
Accumulated net realized gain
on investments 40,015
Net unrealized depreciation of
investments and foreign currencies (25,876)
- ------------------------------------------------------------------------------
Total Net Assets $3,092,554
==============================================================================
*Non-income producing security.
**Undistributed net investment income includes net realized gains (losses) on
foreign currencies. Net realized gains (losses) on foreign currencies are
treated as net investment income in accordance with provisions of the Internal
Revenue Code.
IR-Installment Receipts
See accompanying notes
62 DELAWARE POOLED TRUST O 1998 ANNUAL REPORT
<PAGE>
- --------------------------------------------------------------------------------
Delaware Pooled Trust, Inc.: The International Equity Portfolio
Statement of Net Assets
October 31,1998
Number Market Value
of Shares (U.S.$)
-------------------------------------------------------------------------------
COMMON STOCK: 94.20%
-------------------------------------------------------------------------------
+Australia: 11.41%
Amcor Limited 2,508,000 $10,453,309
Brambles Industries 311,000 6,809,160
CSR Limited 5,558,003 12,692,572
Foster's Brewing Group 7,523,232 18,447,894
+National Australia Bank 1,177,017 15,569,275
Orica Limited 1,148,600 6,322,454
-----------
70,294,664
-----------
-------------------------------------------------------------------------------
Belgium: 2.07%
-------------------------------------------------------------------------------
Electrabel 34,613 12,748,431
-----------
12,748,431
-----------
-------------------------------------------------------------------------------
France: 8.22%
-------------------------------------------------------------------------------
+Alcatel Alsthom 131,509 14,677,318
Compagnie de Saint Gobain 83,145 12,322,775
Elf Aquitaine 105,295 12,207,291
Societe Generale 86,411 11,451,357
-----------
50,658,741
-----------
-------------------------------------------------------------------------------
Germany: 9.92%
-------------------------------------------------------------------------------
Bayer 307,000 12,389,510
Bayerische Vereinsbank 157,800 12,593,470
Continental 288,550 7,658,612
+RWE 251,500 13,532,950
Siemens 245,500 14,931,862
-----------
61,106,404
-----------
-------------------------------------------------------------------------------
Hong Kong: 3.87%
-------------------------------------------------------------------------------
Hong Kong Electric 3,170,000 11,624,766
Wharf Holdings 7,689,000 12,211,853
-----------
23,836,619
-----------
-------------------------------------------------------------------------------
Japan: 12.24%
-------------------------------------------------------------------------------
Amano 331,000 3,174,638
Canon Electronics 550,000 10,441,244
Chiyoda Fire and Marine 535,000 1,768,748
Eisai Limited 703,500 11,071,877
Hitachi Limited 1,867,000 9,531,911
+Kinki Coca-Cola Bottling 75,000 981,490
Koito Manufacturing 630,000 2,576,411
+Matsushita Electric 940,000 13,847,100
Nichido Fire & Marine 757,000 3,916,980
West Japan Railway 4,045 18,109,348
-----------
75,419,747
-----------
<PAGE>
Number Market Value
of Shares (U.S.$)
-------------------------------------------------------------------------------
Malaysia: 0.36%
-------------------------------------------------------------------------------
Sime Darby Berhad 4,100,000 $ 2,231,953
-----------
2,231,953
-----------
-------------------------------------------------------------------------------
Netherlands: 6.34%
-------------------------------------------------------------------------------
Elsevier 1,139,000 16,047,410
Koninklijke Van Ommeren 242,000 7,843,253
+Royal Dutch Petroleum 314,900 15,216,146
-----------
39,106,809
-----------
-------------------------------------------------------------------------------
New Zealand: 2.94%
-------------------------------------------------------------------------------
Carter Holt Harvey
Limited 5,293,600 4,315,337
+Telecom Corporation of
New Zealand 3,340,000 13,702,225
+Telecom Corporation of
New Zealand IR 51,670 100,654
-----------
18,118,216
-----------
-------------------------------------------------------------------------------
Singapore: 0.40%
-------------------------------------------------------------------------------
Jardine Matheson Holdings
Limited 876,278 2,453,578
-----------
2,453,578
-----------
-------------------------------------------------------------------------------
Spain: 6.37%
-------------------------------------------------------------------------------
Acerinox 114,110 2,574,977
+Banco Central
Hispanoamericano 1,162,518 12,848,017
Iberdrola 517,000 8,359,452
+Telefonica de Espana 342,927 15,501,177
-----------
39,283,623
-----------
-------------------------------------------------------------------------------
United Kingdom: 30.06%
-------------------------------------------------------------------------------
Bass 1,247,857 15,132,764
BG 1,378,206 9,095,470
Blue Circle Industries 3,273,970 17,891,223
Boots 1,063,100 16,061,846
British Airways 2,207,550 16,158,713
Cable & Wireless 1,597,837 18,025,399
*Centrica 961,300 1,855,730
GKN 1,660,500 19,956,097
Glaxo Wellcome 618,711 19,203,397
Great Universal Stores 1,629,300 17,725,358
Powergen 1,145,000 16,263,580
Rio Tinto 1,465,000 17,851,941
-----------
185,221,518
-----------
- --------------------------------------------------------------------------------
Total Common Stock
(cost $529,278,517) $580,480,303
================================================================================
1998 ANNUAL REPORT o DELAWARE POOLED TRUST 63
<PAGE>
Number Market Value
of Shares (U.S.$)
-------------------------------------------------------------------------------
WARRANTS: 0.00%
-------------------------------------------------------------------------------
Indonesia: 0.00%
-------------------------------------------------------------------------------
*Wharf Holdings 12/31/99 244,450 $28,724
-------------------------------------------------------------------------------
Total Warrants
(cost $0) 28,724
===============================================================================
Principal
Amount
-------------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 8.00%
-------------------------------------------------------------------------------
With Chase Manhattan
5.30% 11/02/98 (dated
10/30/98, collateralized
by $16,372,000 U.S.
Treasury Notes 5.75%
due 10/31/02, market
value $17,679,327) $17,315,000 17,315,000
With J.P. Morgan Securities
5.25% 11/02/98 (dated
10/30/98, collateralized
by $572,000 U.S. Treasury
Notes 5.625% due 11/30/00,
market value $600,568
and $5,475,000 U.S. Treasury
Notes 5.25% due 01/31/01,
market value $5,662,015 and
$5,016,000 U.S. Treasury Notes
6.25% due 01/31/02, market value
$5,388,558 and $4,258,000
U.S. Treasury Notes 5.50% due
02/28/03, market value $4,489,120) 15,816,000 15,816,000
With PaineWebber
5.30% 11/02/98 (dated 10/30/98,
collateralized by $6,083,000 U.S.
Treasury Notes 5.625% due 05/15/01,
market value $6,452,953 and $5,231,000
U.S. Treasury Notes 6.50% due 08/31/01,
market value $5,601,528 and $3,923,000
U.S. Treasury Notes 7.50% due 05/15/02,
market value $4,462,412) 16,180,000 16,180,000
- --------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $49,311,000) 49,311,000
================================================================================
<PAGE>
Market Value
(U.S.$)
- --------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 102.20%
(COST $578,589,517) $629,820,027
================================================================================
- --------------------------------------------------------------------------------
LIABILITIES NET OF RECEIVABLES
AND OTHER ASSETS: (2.20%) (13,591,046)
================================================================================
NET ASSETS APPLICABLE TO
38,840,477 SHARES ($0.01 PAR VALUE)
OUTSTANDING; EQUIVALENT TO
$15.87 PER SHARE: 100.00% $616,228,981
================================================================================
- --------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 1998:
- --------------------------------------------------------------------------------
Common stock, $0.01 par value,
2,000,000,000 shares authorized
to the Fund with 50,000,000
shares allocated to this Portfolio $561,081,486
Undistributed net investment income** 9,076,781
Accumulated net realized loss on
investments (5,696,595)
Net unrealized appreciation of
investments and foreign currencies 51,767,309
- --------------------------------------------------------------------------------
Total Net Assets $616,228,981
================================================================================
* Non-income producing security.
** Undistributed net investment income includes net realized gains (losses) on
foreign currencies.Net realized gains (losses) on foreign currencies are treated
as net investment income in accordance with provisions of the Internal Revenue
Code.
+ Security is partially or fully on loan.
IR-Installment Receipts
See accompanying notes
64 DELAWARE POOLED TRUST o 1998 ANNUAL REPORT
<PAGE>
- --------------------------------------------------------------------------------
Delaware Pooled Trust, Inc.: The Labor Select International Equity Portfolio
Statement of Net Assets
October 31, 1998
Number Market Value
of Shares (U.S.$)
-------------------------------------------------------------------------------
COMMON STOCK: 91.22%
-------------------------------------------------------------------------------
Australia: 11.87%
Amcor Limited 599,077 $ 2,496,945
Brambles Industries 37,200 814,472
+CSR Limited 860,000 1,963,945
Foster's Brewing Group 1,047,402 2,568,359
National Australia Bank 216,072 2,858,144
National Foods 350,334 647,029
Orica 166,700 917,598
----------
12,266,492
----------
-------------------------------------------------------------------------------
Belgium: 2.07%
-------------------------------------------------------------------------------
Electrabel 5,798 2,135,481
---------
2,135,481
---------
-------------------------------------------------------------------------------
Germany: 10.89%
-------------------------------------------------------------------------------
Bayer 84,450 3,408,124
Bayerische Vereinsbank 28,500 2,274,486
Continental 43,300 1,149,256
RWE 39,900 2,146,977
Siemens 37,450 2,277,793
---------
11,256,636
---------
-------------------------------------------------------------------------------
France: 8.67%
-------------------------------------------------------------------------------
Alcatel 28,026 3,127,896
Elf Aquitaine 25,299 2,933,019
Societe Generale 21,859 2,896,798
---------
8,957,713
---------
-------------------------------------------------------------------------------
Japan: 14.19%
-------------------------------------------------------------------------------
Canon 138,000 2,619,803
Eisai Co. Limited 221,000 3,478,159
Kinki Coca-Cola Bottling 23,000 300,990
Koito Manufacturing 157,000 642,058
Matsushita Electric Industrial 192,000 2,828,344
Nichido Fire & Marine 118,000 610,573
West Japan Railway 860 3,850,195
Yokohama Reito 67,000 333,991
---------
14,664,113
---------
-------------------------------------------------------------------------------
Netherlands: 6.39%
-------------------------------------------------------------------------------
Elsevier-CVA 131,900 1,858,344
ING Groep N.V 43,425 2,102,973
Koninklijke Van Ommeren 17,000 550,972
+Royal Dutch Petroleum 43,360 2,095,180
---------
6,607,469
---------
<PAGE>
Number Market Value
of Shares (U.S.$)
-------------------------------------------------------------------------------
New Zealand: 3.45%
-------------------------------------------------------------------------------
Carter Holt Harvey Limited 952,000 $ 776,069
+Telecom Corporation of
New Zealand IR 43,285 84,320
+Telecom Corporation of
New Zealand 659,000 2,703,523
---------
3,563,912
---------
-------------------------------------------------------------------------------
Spain: 5.99%
-------------------------------------------------------------------------------
Acerinox 20,675 466,547
+Banco Central
Hispanoamericano 278,399 3,076,833
Iberdrola 164,000 2,651,741
---------
6,195,121
---------
-------------------------------------------------------------------------------
United Kingdom: 27.70%
-------------------------------------------------------------------------------
Associated British Food 237,000 2,270,697
Bass 164,375 1,993,376
BG 435,808 2,876,115
Blue Circle Industry 418,884 2,289,070
Boots 185,100 2,796,583
British Airways 283,743 2,076,928
*Centrica 674,250 1,301,597
GKN 220,000 2,643,988
Glaxo Wellcome 83,260 2,584,203
Great Universal Stores 192,000 2,088,792
PowerGen 146,250 2,077,335
Rio Tinto 225,950 2,753,342
Taylor Woodrow 306,750 878,609
----------
28,630,635
----------
- --------------------------------------------------------------------------------
Total Common Stock
(cost $89,300,990) 94,277,572
================================================================================
1998 ANNUAL REPORT o DELAWARE POOLED TRUST 65
<PAGE>
Principal Market Value
Amount (U.S.$)
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 10.44%
- -------------------------------------------------------------------------------
With Chase Manhattan
5.30% 11/02/98 (dated
10/30/98, collateralized
by $3,582,000 U.S.
Treasury Notes 5.75%
due 10/31/02, market
value $3,868,148) $ 3,788,000 $ 3,788,000
With J.P. Morgan Securities
5.25% 11/02/98 (dated
10/30/98, collateralized
by $125,000 U.S.
Treasury Notes 5.625%
due 11/30/00, market
value $131,401 and $1,198,000
U.S. Treasury Notes 5.25%
due 01/31/01, market
value $1,238,821 and $1,097,000
U.S. Treasury Notes 6.25%
due 01/31/02, market
value $1,178,989 and $932,000
U.S. Treasury Notes 5.50%
due 02/28/03, market
value $982,197) 3,461,000 3,461,000
With PaineWebber
5.30% 11/02/98 (dated
10/30/98, collateralized
by $1,331,000 U.S.
Treasury Notes 5.625%
due 05/15/01, market
value $1,411,874 and $1,145,000
U.S. Treasury Notes 6.50%
due 08/03/01, market
value $1,225,586 and $858,000
U.S. Treasury Notes 7.50%
due 05/15/02, market
value $976,353) 3,540,000 3,540,000
- -------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $10,789,000) 10,789,000
===============================================================================
<PAGE>
- -------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 101.66%
(COST $100,089,990) $105,066,572
===============================================================================
- -------------------------------------------------------------------------------
LIABILITIES NET OF RECEIVABLES
AND OTHER ASSETS: (1.66%) (1,716,245)
===============================================================================
- -------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
7,756,513 SHARES ($0.01 PAR VALUE)
OUTSTANDING; EQUIVALENT TO
$13.32 PER SHARE: 100.00% $103,350,327
===============================================================================
- -------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 1998:
- -------------------------------------------------------------------------------
Common stock, $0.01 par value,
2,000,000,000 shares authorized
to the Fund with 50,000,000
shares allocated to the Portfolio $96,734,734
Undistributed net investment income** 1,231,469
Accumulated net realized gain on
investments 302,223
Net unrealized appreciation of
investments and foreign currencies 5,081,901
- -------------------------------------------------------------------------------
Total Net Assets $103,350,327
===============================================================================
* Non-income producing security.
** Undistributed net investment income includes net realized gains (losses) on
foreign currencies. Net realized gains (losses) on foreign currencies are
treated as net investment income in accordance with provisions of the Internal
Revenue Code.
+ Security is partially or fully on loan.
IR-Installment Receipts
See accompanying notes
66 DELAWARE POOLED TRUST o 1998 ANNUAL REPORT
<PAGE>
- -------------------------------------------------------------------------------
Delaware Pooled Trust, Inc.: The Emerging Markets Portfolio
Statement of Net Assets
October 31, 1998
Number Market Value
of Shares (U.S.$)
------------------------------------------------------------------------------
COMMON STOCK: 83.34%
------------------------------------------------------------------------------
Argentina: 4.12%
------------------------------------------------------------------------------
Central Puerto Class B 160,000 $ 392,122
Transportadora de Gas
del sur, Class B 225,000 461,393
YPF Sociedad Anonima 2,800 80,945
YPF Sociedad Anonima ADR 16,200 468,788
----------
1,403,248
----------
------------------------------------------------------------------------------
Brazil: 16.16%
------------------------------------------------------------------------------
Aracruz Celulose ADR 61,100 511,713
Brasmotor Preferred 4,549,000 472,841
Centrais Electricas de Santa
Catrina 280,000 152,563
Centrais Electricas de Santa
Catrina GDR 5,350 300,493
Centrais Electricas de Santa
Catrina GDR 620 34,824
Companhia Energetica de
Minas Gerais 4,400,000 85,569
Companhia Energetica de
Minas Gerais GDR 24,598 478,402
Companhia Paranaense de
Energia Copel ADR 34,179 264,887
Elvadores Atlas 26,800 267,337
Metalurgica Gerdau 42,100,000 684,639
*Rossi Residential GDR 22,000 19,364
Telecomunicacoes de
Minas Gerais 17,200,000 518,905
Telecomunicacoes de
Parana 4,000,000 670,606
Uniao de Bancos
Brasileiros 45,000,000 690,306
Usinas Siderurgicas de
Minas Gerais 94,300 296,429
Usinas Siderurgicas de
Minas Gerais ADR 16,152 50,911
----------
5,499,789
----------
------------------------------------------------------------------------------
Chile: 4.80%
------------------------------------------------------------------------------
Administradora de Fondos de
Pensiones Provida ADR 45,000 638,438
Banco BHIF ADR 54,200 596,200
Empresa Nacional Electricidad
ADR 40,000 397,500
----------
1,632,138
----------
<PAGE>
Number Market Value
of Shares (U.S.$)
------------------------------------------------------------------------------
Croatia: 1.31%
------------------------------------------------------------------------------
*Zagrebacka Banka GDR 41,500 $ 446,125
-----------
446,125
-----------
------------------------------------------------------------------------------
Czech Republic: 2.47%
------------------------------------------------------------------------------
*Komercni Banka I.F 15,500 245,374
Restitucni Investment Fund 18,700 594,708
----------
840,082
----------
------------------------------------------------------------------------------
Egypt: 1.91%
------------------------------------------------------------------------------
Paints and Chemical GDR 71,275 650,384
----------
650,384
----------
------------------------------------------------------------------------------
Estonia: 1.07%
------------------------------------------------------------------------------
*Eesti Uhispank GDR 71,690 363,827
----------
363,827
----------
------------------------------------------------------------------------------
Greece: 1.56%
------------------------------------------------------------------------------
Attica Enterprises 38,900 285,042
Hellenic Bottling Company 10,095 245,974
----------
531,016
----------
------------------------------------------------------------------------------
Hong Kong: 7.39%
------------------------------------------------------------------------------
First Tractor 1,606,000 508,064
Guangdong Kelon Electric
Holding 796,000 678,365
Guangshen Railway 3,650,000 565,563
Shenzhen Expressway 3,370,800 761,689
----------
2,513,681
----------
------------------------------------------------------------------------------
India: 4.98%
------------------------------------------------------------------------------
*India Fund, (The) 118,000 730,125
Larsen & Toubro GDR 74,500 502,875
*Mahanagar Telecom Nigam
GDR 42,000 460,950
----------
1,693,950
----------
------------------------------------------------------------------------------
Indonesia: 0.01%
------------------------------------------------------------------------------
*PT United Tractors 69,000 3,550
----------
3,550
----------
------------------------------------------------------------------------------
Israel: 1.35%
------------------------------------------------------------------------------
Bank Hapoalim 253,800 457,559
----------
457,559
----------
1998 ANNUAL REPORT o DELAWARE POOLED TRUST 67
<PAGE>
Number Market Value
of Shares (U.S.$)
------------------------------------------------------------------------------
Malaysia: 4.42%
------------------------------------------------------------------------------
*Leader Universal Holdings 1,700,000 $ 251,479
Petronas Dagangan Berhad 1,021,000 461,162
Public Finance Berhad 95,000 21,548
Resorts World Berhad 547,000 349,562
Sime Darby Berhad 771,000 419,716
-----------
1,503,467
-----------
------------------------------------------------------------------------------
Mexico: 3.93%
------------------------------------------------------------------------------
ALFA de C.V. Class A 108,000 286,783
Cemex de C.V. Class B 186,000 508,702
*Grupo Minsa ADR 5,900 19,913
*Grupo Minsa Class C 506,054 172,124
Vitro ADR 78,000 351,000
-----------
1,338,522
-----------
------------------------------------------------------------------------------
Peru: 2.14%
------------------------------------------------------------------------------
Banco de Credito del Peru 256,078 139,300
Creditcorp Limited 36,740 247,995
Telefonica del Peru ADR 26,300 341,900
-----------
729,195
-----------
------------------------------------------------------------------------------
Romania: 0.67%
------------------------------------------------------------------------------
*Banca Turco Romana 49,500 226,463
-----------
226,463
-----------
------------------------------------------------------------------------------
Russia: 1.41%
------------------------------------------------------------------------------
Gazprom ADR 11,000 102,575
Gazprom ADR Reg. S 8,200 76,465
Lukoil Holding ADR 11,620 180,575
Mosenergo ADR 48,000 99,163
*Mosenergo ADR Reg. S 10,200 21,072
-----------
479,850
-----------
------------------------------------------------------------------------------
Slovenia: 0.13%
------------------------------------------------------------------------------
Blagovno Trgovinski Center
GDR 3,460 18,944
*SKB Banka GDR 3,600 26,010
-----------
44,954
-----------
------------------------------------------------------------------------------
South Africa: 12.42%
------------------------------------------------------------------------------
Amalgamated Banks of South
Africa 60,000 327,942
Anglo American Coal
Limited 9,400 549,151
*Anglo American Corporation of
South Africa Limited 27,500 899,870
Edgars Stores Limited 28,186 127,538
Iscor Limited 3,928,300 999,630
*Sappi Limited 132,400 664,343
Sasol Limited 133,900 658,672
-----------
4,227,146
-----------
<PAGE>
Number Market Value
of Shares (U.S.$)
------------------------------------------------------------------------------
South Korea: 1.88%
------------------------------------------------------------------------------
Pohang Iron & Steel 8,380 $ 460,438
Pohang Iron & Steel ADR 10,000 180,000
-----------
640,438
-----------
------------------------------------------------------------------------------
Taiwan: 4.01%
------------------------------------------------------------------------------
*Asia Cement GDR 81,072 749,916
Yageo GDR 26,460 178,605
*Yageo GDR 64,680 436,590
-----------
1,365,111
-----------
------------------------------------------------------------------------------
Thailand: 2.78%
------------------------------------------------------------------------------
*Hana Microelectronics Public
Co. Limited 268,000 717,337
*K.R. Precision Public Co. 226,000 119,755
Thai Reinsurance Public
Co. Limited 49,500 110,299
-----------
947,391
-----------
------------------------------------------------------------------------------
Turkey: 2.42%
------------------------------------------------------------------------------
*Efes Sinai Yatirim Holding 11,900,000 102,200
*Efes Sinai Yatirim ADR 118,160 91,574
Koc Holding 4,282,800 393,825
Netas-Northern Eleckrik
Telekomunikayson 10,636,600 236,218
-----------
823,817
-----------
------------------------------------------------------------------------------
Total Common Stock
(cost $48,331,978) 28,361,703
==============================================================================
------------------------------------------------------------------------------
WARRANTS: 0.00%
------------------------------------------------------------------------------
Hong Kong: 0.00%
------------------------------------------------------------------------------
*Guangdong Investment 7/99 9,200 113
------------------------------------------------------------------------------
Total Warrants
(cost $0) 113
==============================================================================
68 DELAWARE POOLED TRUST o 1998 ANNUAL REPORT
<PAGE>
Number Market Value
of Shares (U.S.$)
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 16.91%
- -------------------------------------------------------------------------------
With Chase Manhattan
5.30% 11/02/98 (dated
10/30/98, collateralized
by $1,911,000 U.S.
Treasury Notes 5.75%
due 10/31/02, market
value $2,063,323) $ 2,021,000 $ 2,021,000
With J.P. Morgan Securities
5.25% 11/02/98 (dated
10/30/98, collateralized
by $67,000 U.S.
Treasury Notes 5.625%
due 11/30/00, market
value $70,091 and $639,000
U.S. Treasury Notes 5.25%
due 01/31/01, market
value $660,804 and $585,000
U.S. Treasury Notes 6.25%
due 01/31/02, market
value $628,889 and $497,000
U.S. Treasury Notes 5.50%
due 02/28/03, market
value $523,917) 1,846,000 1,846,000
With PaineWebber
5.30% 11/02/98 (dated
10/30/98, collateralized
by $710,000 U.S.
Treasury Notes 5.625%
due 05/15/01, market
value $753,113 and $611,000
U.S. Treasury Notes 6.50%
due 08/31/01, market
value $653,744 and $458,000
U.S. Treasury Notes 7.50%
due 05/15/02, market
value $520,800) 1,888,000 1,888,000
- -------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $5,755,000) 5,755,000
===============================================================================
<PAGE>
- -------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 100.25%
(COST $54,086,978) $34,116,816
===============================================================================
- -------------------------------------------------------------------------------
LIABILITIES NET OF RECEIVABLES
AND OTHER ASSETS: (0.25%) (86,473)
===============================================================================
- -------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
5,827,684 SHARES ($0.01 PAR VALUE)
OUTSTANDING; EQUIVALENT TO
$5.84 PER SHARE: 100.00% $34,030,343
===============================================================================
- -------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 1998:
- -------------------------------------------------------------------------------
Common stock, $0.01 par value,
2,000,000,000 shares authorized
to the Fund with 50,000,000
shares allocated to this Portfolio $54,823,834
Undistributed net investment income** 643,575
Accumulated net realized loss on
investments (1,467,589)
Net unrealized depreciation of
investments and foreign currencies (19,969,477)
- -------------------------------------------------------------------------------
Total Net Assets $34,030,343
===============================================================================
* Non-income producing security.
** Undistributed net investment income includes net realized gains (losses) on
foreign currencies. Net realized gains (losses) on foreign currencies are
treated as net investment income in accordance with provisions of the Internal
Revenue Code.
ADR = American Depository Receipt
GDR = Global Depository Receipt
See accompanying notes
1998 ANNUAL REPORT o DELAWARE POOLED TRUST 69
<PAGE>
- --------------------------------------------------------------------------------
Delaware Pooled Trust, Inc.: The Global Fixed Income Portfolio
Statement of Net Assets
October 31, 1998
Principal Market Value
Amount * (U.S.$)
- --------------------------------------------------------------------------------
BONDS: 95.66%
- --------------------------------------------------------------------------------
Australia: 13.44%
- --------------------------------------------------------------------------------
Australian Government
6.25% 3/15/99 A$30,000,000 $18,835,491
Australian Government
6.75% 11/15/06 20,000,000 14,037,752
New South Wales Treasury
6.50% 5/1/06 25,000,000 16,856,399
New South Wales Treasury
7.00% 2/1/00 20,000,000 12,880,699
Queensland Treasury
8.00% 7/14/99 30,000,000 19,162,690
Queensland Treasury
8.00% 5/14/03 10,000,000 7,027,674
-------------
88,800,705
-------------
- --------------------------------------------------------------------------------
Canada: 21.99%
- --------------------------------------------------------------------------------
British Columbia
7.75% 6/16/03 C$ 40,000,000 28,696,092
+Government of Canada
4.75% 9/15/99 40,000,000 25,995,204
Government of Canada
10.25% 3/15/14 20,000,000 19,681,379
KFW International Finance
6.50% 12/28/01 6,000,000 4,051,624
Kingdom of Norway
8.375% 1/27/03 10,000,000 7,238,804
Ontario Hydro
5.60% 6/2/08 25,000,000 16,405,308
Ontario Hydro
10.00% 3/19/01 20,000,000 14,412,794
Ontario Province
8.00% 3/11/03 40,000,000 28,838,939
-------------
145,320,144
-------------
-------------------------------------------------------------------------------
Germany: 9.98%
-------------------------------------------------------------------------------
Baden Wurt L-Finance
NV 5.25% 9/26/01 Dem 15,000,000 9,454,353
Baden Wurt L-Finance
NV 6.625% 8/20/03 26,000,000 17,527,207
Bundesrepublic Deutschland
6.25% 1/4/24 35,000,000 24,356,106
International Bank
Reconstruction & Development
6.125% 9/27/02 8,000,000 5,247,884
<PAGE>
Principal Market Value
Amount * (U.S.$)
- --------------------------------------------------------------------------------
Republic of Finland
5.50% 2/9/01 Dem 4,000,000 $2,521,161
Treuhandansstalt
6.875% 6/11/03 10,000,000 6,837,364
-------------
65,944,075
-------------
- --------------------------------------------------------------------------------
Netherlands: 6.95%
- --------------------------------------------------------------------------------
Netherlands Government
7.50% 1/15/23 Nlg 9,000,000 6,385,868
Netherlands Government
8.25% 9/15/07 37,500,000 25,904,671
Netherlands Government
9.00% 5/15/00 23,500,000 13,615,069
-------------
45,905,608
-------------
- --------------------------------------------------------------------------------
New Zealand: 12.04%
- --------------------------------------------------------------------------------
+Government of
New Zealand
6.50% 2/15/00 NZ$ 17,000,000 9,148,333
Government of
New Zealand
7.00% 7/15/09 32,000,000 19,177,038
+Government of
New Zealand
8.00% 2/15/01 23,500,000 13,176,157
+Government of
New Zealand
8.00% 4/15/04 30,500,000 18,187,540
+Government of
New Zealand
8.00% 11/15/06 12,000,000 7,426,992
+Government of
New Zealand
10.00% 3/15/02 7,000,000 4,241,629
International Bank
Reconstruction &
Development
7.00% 9/18/00 7,500,000 4,049,528
International Bank
Reconstruction &
Development
7.25% 5/27/03 7,500,000 4,151,639
-------------
79,558,856
-------------
70 DELAWARE POOLED TRUST o 1998 ANNUAL REPORT
<PAGE>
Principal Market Value
Amount * (U.S.$)
- --------------------------------------------------------------------------------
Sweden: 14.20%
- --------------------------------------------------------------------------------
Nordic Investment Bank
10.25% 01/07/99 Sk 8,000,000 $1,049,292
Swedish Export Credit
6.50% 06/05/01 25,000,000 3,359,309
Swedish Government
6.00% 02/09/05 210,000,000 29,136,279
Swedish Government
8.00% 08/15/07 80,000,000 12,789,694
Swedish Government
9.00% 04/20/09 198,000,000 34,470,440
Swedish Government
10.25% 05/05/00 40,000,000 5,582,235
Swedish Government
10.25% 05/05/03 30,000,000 4,789,658
Swedish Government
13.00% 06/15/01 17,000,000 2,656,897
-------------
93,833,804
-------------
- --------------------------------------------------------------------------------
Switzerland: 3.00%
- --------------------------------------------------------------------------------
Government of Switzerland
4.50% 07/08/02 Chf 12,000,000 9,752,525
Government of Switzerland
4.50% 10/07/04 12,000,000 10,045,500
-------------
19,798,025
-------------
- --------------------------------------------------------------------------------
United States: 14.06%
- --------------------------------------------------------------------------------
Baden Wurt L-Finance
NV 5.75% 02/25/08 $ 4,000,000 4,094,400
Caisse D'Amort Dette
6.50% 03/11/02 8,000,000 8,400,000
Interamerican Development
Bank
6.375% 10/22/07 7,000,000 7,538,125
J. Sainsbury
6.25% 03/27/02 1,600,000 1,649,000
+Korea Electric Power
6.375% 12/01/03 3,600,000 2,862,000
Matsushita Electric
7.25% 08/01/02 7,200,000 7,591,500
Republic of Finland
7.875% 07/28/04 8,200,000 9,389,000
U.S. Treasury Inflation
Index Notes
3.375% 01/15/07 14,425,380 14,199,983
U.S. Treasury Inflation
Index Notes
3.625% 07/15/02 14,270,500 14,283,879
U.S. Treasury Inflation
Index Notes
3.625% 01/15/08 16,167,200 16,172,249
U.S. Treasury Notes
6.125% 07/31/00 $2,000,000 $2,061,237
U.S. Treasury Notes
6.375% 08/15/27 2,000,000 2,308,915
U.S. Treasury Notes
7.875% 11/15/04 2,000,000 2,349,782
-------------
92,900,070
-------------
- --------------------------------------------------------------------------------
Total Bonds
(cost $619,062,066) 632,061,287
================================================================================
<PAGE>
Principal Market Value
Amount * (U.S.$)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 2.39%
- --------------------------------------------------------------------------------
With Chase Manhattan
5.30% 11/02/98 (dated
10/30/98, collateralized
by $5,250,000 U.S.
Treasury Notes 5.75%
due 10/31/02, market
value $5,669,030) 5,552,000 5,552,000
With J.P. Morgan Securities
5.25% 11/02/98 (dated
10/30/98, collateralized
by $183,000 U.S.
Treasury Notes 5.625%
due 11/30/00, market
value $192,577 and $1,755,000
U.S. Treasury Notes 5.25%
due 01/31/01, market
value $1,815,574 and $1,608,000
U.S. Treasury Notes 6.25%
due 01/31/02, market
value $1,727,888 and $1,365,000
U.S. Treasury Notes 5.50%
due 02/28/03, market
value $1,439,475) 5,072,000 5,072,000
With PaineWebber
5.30% 11/02/98 (dated
10/30/98, collateralized
by $1,951,000 U.S.
Treasury Notes 5.625%
due 05/15/01, market
value $2,069,195 and $1,677,000
U.S. Treasury Notes 6.50%
due 08/31/01, market
value $1,796,178 and $1,258,000
U.S. Treasury Notes 7.50%
due 05/15/02, market
value $1,430,911 ) 5,188,000 5,188,000
- --------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $15,812,000) 15,812,000
================================================================================
1998 ANNUAL REPORT o DELAWARE POOLED TRUST 71
<PAGE>
- --------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 98.05%
(COST $634,874,066) $647,873,287
================================================================================
- --------------------------------------------------------------------------------
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES: 1.95% 12,867,421
================================================================================
- --------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
59,767,280 SHARES ($0.01 PAR VALUE)
OUTSTANDING; EQUIVALENT TO
$11.06 PER SHARE: 100.00% $660,740,708
================================================================================
- --------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 1998:
- --------------------------------------------------------------------------------
Common Stock, $0.01 par value,
2,000,000,000 shares authorized
to the Fund with 50,000,000
shares allocated to this Portfolio $638,329,681
Undistributed net investment income ** 1,884,872
Accumulated net realized gain on
investments 7,291,134
Net unrealized appreciation of
investments and foreign currencies 13,235,021
- --------------------------------------------------------------------------------
Total Net Assets $660,740,708
================================================================================
* Principal amount is stated in the currency in which each security denominated:
A$ = Australian Dollars
C$ = Canadian Dollars
Chf = Swiss Francs
Dem = German Deutsche Marks
Nlg = Dutch Guilders
NZ$ = New Zealand Dollars
Sk = Swedish Kroner
$ = U.S. Dollars
** Undistributed net investment income includes net
realized gains (losses) on foreign currencies. Net realized gains (losses) on
foreign currencies are treated as net investment income in accordance with
provisions of the Internal Revenue Code.
+ Security is partially or fully on
loan.
See accompanying notes
72 DELAWARE POOLED TRUST o 1998 ANNUAL REPORT
<PAGE>
- --------------------------------------------------------------------------------
Delaware Pooled Trust, Inc.: The International Fixed Income Portfolio
Statement of Net Assets
October 31, 1998
Principal Market Value
Amount * (U.S.$)
- --------------------------------------------------------------------------------
BONDS: 95.84%
- --------------------------------------------------------------------------------
Australia: 12.58%
- --------------------------------------------------------------------------------
Australian Government
6.25% 3/15/99 A$ 1,000,000 $627,850
Australian Government
6.75% 11/15/06 2,500,000 1,754,719
Australian Government
7.00% 4/15/00 2,000,000 1,294,933
Federal National
Mortgage Association
5.75% 9/5/00 2,500,000 1,590,098
New South Wales
Treasury
7.00% 2/1/00 4,100,000 2,640,543
Queensland Treasury
8.00% 5/14/03 4,500,000 3,162,453
-------------
11,070,596
-------------
- --------------------------------------------------------------------------------
Canada: 17.02%
- --------------------------------------------------------------------------------
Abbey National
Treasury Service
6.75% 2/25/04 C$ 900,000 618,316
British Columbia
7.75% 6/16/03 4,000,000 2,869,609
CHUBU Electric Power
7.375% 3/30/01 700,000 474,958
General Electric
Capital of Canada
7.125% 2/12/04 900,000 629,618
Government of Canada
6.00% 6/1/08 1,000,000 694,692
Government of Canada
Series A81 7.50% 9/1/00 4,000,000 2,725,543
Government of Canada
10.25% 3/15/14 3,300,000 3,247,428
KFW International Finance
6.50% 12/28/01 1,400,000 945,379
Ontario Hydro
5.60% 6/2/08 1,500,000 984,318
Ontario Hydro
10.875% 3/29/99 2,700,000 1,789,325
-------------
14,979,186
-------------
<PAGE>
Principal Market Value
Amount * (U.S.$)
- --------------------------------------------------------------------------------
Germany: 17.86%
- --------------------------------------------------------------------------------
Baden Wurt L-Finance NV
5.25% 9/26/01 Dem 4,000,000 $ 2,521,161
Baden Wurt L-Finance NV
6.625% 8/20/03 2,100,000 1,415,659
Bayerische Vereinsbank
6.50% 6/6/05 3,900,000 2,658,319
Bundesrepublik Deutschland
6.00% 1/4/07 1,500,000 1,017,987
Bundesrepublik Deutschland
6.25% 1/4/24 2,000,000 1,391,777
Bundesrepublik Deutschland
6.50% 7/4/27 1,500,000 1,077,751
DSL Finance NV
5.75% 3/19/09 1,500,000 986,246
DSL Finance NV
6.00% 2/21/06 2,900,000 1,930,849
Republic of Finland
5.50% 2/9/01 4,300,000 2,710,248
-------------
15,709,997
-------------
- --------------------------------------------------------------------------------
Japan: 4.53%
- --------------------------------------------------------------------------------
European Investment Bank
5.875% 11/26/99 Jpy 130,000,000 1,185,759
Japan Development Bank
5.00% 10/1/99 180,000,000 1,618,490
Kingdom of Belgium
5.00% 12/17/99 130,000,000 1,180,801
-------------
3,985,050
-------------
- --------------------------------------------------------------------------------
Netherlands: 8.12%
- --------------------------------------------------------------------------------
Netherlands Government
8.25% 9/15/07 Nlg 9,500,000 6,562,517
Netherlands Government
9.00% 5/15/00 1,000,000 579,365
-------------
7,141,882
-------------
1998 ANNUAL REPORT o DELAWARE POOLED TRUST 73
<PAGE>
Principal Market Value
Amount * (U.S.$)
- --------------------------------------------------------------------------------
New Zealand: 11.82%
- --------------------------------------------------------------------------------
Federal National
Mortgage Association
7.25% 6/20/02 NZ$ 3,000,000 $1,641,647
Government of
New Zealand
7.00% 7/15/09 3,000,000 1,797,847
Government of
New Zealand
8.00% 2/15/01 3,000,000 1,682,063
Government of
New Zealand
8.00% 4/15/04 3,000,000 1,788,938
Government of
New Zealand
8.00% 11/15/06 2,450,000 1,516,344
Government of
New Zealand
8.00% 11/15/06 500,000 309,458
Government of
New Zealand
10.00% 3/15/02 2,750,000 1,666,354
-------------
10,402,651
-------------
- --------------------------------------------------------------------------------
Sweden: 14.22%
- --------------------------------------------------------------------------------
Swedish Government
6.00% 2/9/05 Sk 15,000,000 2,081,163
Swedish Government
8.00% 8/15/07 21,500,000 3,437,230
Swedish Government
9.00% 4/20/09 21,500,000 3,743,002
Swedish Government
10.25% 5/5/03 15,000,000 2,394,829
Swedish Government
13.00% 6/15/01 5,500,000 859,584
-------------
12,515,808
-------------
- --------------------------------------------------------------------------------
Switzerland: 3.00%
- --------------------------------------------------------------------------------
Government of Switzerland
4.50% 7/8/02 Chf 1,600,000 1,300,337
Government of Switzerland
4.50% 10/7/04 1,600,000 1,339,400
-------------
2,639,737
-------------
- --------------------------------------------------------------------------------
United States: 6.69%
- --------------------------------------------------------------------------------
U.S. Treasury Inflation
Index Notes
3.375% 1/15/07 $ 3,090,870 3,042,575
U.S. Treasury Inflation
Index Notes
3.625% 7/15/02 1,732,971 1,734,596
U.S. Treasury Inflation
Index Notes
3.625% 1/15/08 $1,111,846 $1,112,193
-------------
5,889,364
-------------
- --------------------------------------------------------------------------------
Total Bonds
(cost $81,520,871) 84,334,271
================================================================================
<PAGE>
Principal Market Value
Amount * (U.S.$)
- --------------------------------------------------------------------------------
Repurchase Agreements: 1.95%
- --------------------------------------------------------------------------------
With Chase Manhattan
5.30% 11/02/98 (dated
10/30/98, collateralized
by $571,000 U.S.
Treasury Notes 5.75%
due 10/31/02, market
value $617,025) 604,000 604,000
With J.P. Morgan Securities
5.25% 11/02/98 (dated
10/30/98, collateralized
by $20,000 U.S.
Treasury Notes 5.625%
due 11/30/00, market
value $20,960 and $191,000
U.S. Treasury Notes 5.25%
due 01/31/01, market
value $197,610 and $175,000
U.S. Treasury Notes 6.25%
due 01/31/02, market
value $188,066 and $149,000
U.S. Treasury Notes 5.50%
due 02/28/03, market
value $156,674) 552,000 552,000
With PaineWebber
5.30% 11/02/98 (dated
10/30/98, collateralized
by $212,000 U.S.
Treasury Notes 5.625%
due 05/15/01, market
value $225,214 and $183,000
U.S. Treasury Notes 6.50%
due 08/31/01, market
value $195,499 and $137,000
U.S. Treasury Notes 7.50%
due 05/15/02, market
value $155,742) 565,000 565,000
- --------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $1,721,000) 1,721,000
================================================================================
74 DELAWARE POOLED TRUST o 1998 ANNUAL REPORT
<PAGE>
- --------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 97.79%
(cost $83,241,871) $86,055,271
================================================================================
- --------------------------------------------------------------------------------
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES: 2.21% 1,941,268
================================================================================
- --------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
8,189,030 SHARES ($0.01 PAR VALUE)
OUTSTANDING; EQUIVALENT
TO $10.75 PER SHARE: 100.00% $87,996,539
================================================================================
- --------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 1998:
- --------------------------------------------------------------------------------
Common stock, $0.01 par value,
2,000,000,000 shares authorized
to the Fund with 50,000,000
shares allocated to this Portfolio $82,904,512
Undistributed net investment income** 1,621,344
Accumulated net realized gain on
investments 607,757
Net unrealized appreciation of
investments and foreign currencies 2,862,926
- --------------------------------------------------------------------------------
Total Net Assets $87,996,539
================================================================================
* Principal amount is stated in the currency in which each security is
denominated:
A$ = Australian Dollars
C$ = Canadian Dollars
Chf = Swiss Francs
Dem = German Deutsche Marks
Jpy = Japanese Yen
Nlg = Dutch Guilders
NZ$ = New Zealand Dollars
Sk = Swedish Kroner
$ = U.S. Dollars
** Undistributed net investment income includes net realized gains (losses) on
foreign currencies. Net realized gains (losses) on foreign currencies are
treated as net investment income in accordance with provisions of the Internal
Revenue Code.
See accompanying notes
1998 ANNUAL REPORT o DELAWARE POOLED TRUST 75
<PAGE>
Delaware Pooled Trust, Inc.
Statements of Operations
<TABLE>
<CAPTION>
Year 9/15/98* Year 12/29/97*
Ended to Ended to
10/31/98 10/31/98 10/31/98 10/31/98
------------ ---------- ------------- -------------
The The The The
Large-Cap Growth and Mid-Cap Small/Mid-Cap
Value Equity Income Growth Equity Value Equity
Portfolio Portfolio Portfolio Portfolio
------------ ---------- ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 171,376 $ 870 $ 30,347 $ 4,308
Dividends 2,325,688 3,705 11,949 51,431
Foreign tax withheld -- -- -- --
------------ ---------- ------------- -------------
2,497,064 4,575 42,296 55,739
------------ ---------- ------------- -------------
EXPENSES:
Management fees 522,423 1,360 46,880 18,902
Accounting and administration 39,200 100 4,830 1,100
Reports and statements to shareholders 43,268 200 -- 3,600
Registration fees 16,285 1,470 8,372 2,220
Professional fees 3,720 285 8,720 3,300
Taxes (other than taxes on income) 12,700 130 12,300 600
Dividend disbursing and transfer
agent fees and expenses 7,210 1 3,330 167
Custodian fees 3,032 695 6,510 2,550
Directors' fees 1,900 -- 1,423 436
Amortization of organization expenses -- -- -- --
Other 38,734 98 6,907 1,677
------------ ---------- ------------- -------------
688,472 4,339 99,272 34,552
Less expenses absorbed or waived by
Delaware Management Company
or Delaware International Advisers Ltd. (38,036) (2,642) (64,736) (12,514)
------------ ---------- ------------- -------------
Total expenses 650,436 1,697 34,536 22,038
------------ ---------- ------------- -------------
NET INVESTMENT INCOME 1,846,628 2,878 7,760 33,701
------------ ---------- ------------- -------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on:
Investments 14,115,039 (5,571) 1,308,614 (147,698)
Foreign currencies -- -- -- --
------------ ---------- ------------- -------------
Net realized gain (loss) 14,115,039 (5,571) 1,308,614 (147,698)
Net change in unrealized appreciation/
depreciation of investments
and foreign currencies (5,247,826) 114,455 (1,292,306) (161,927)
------------ ---------- ------------- -------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCIES 8,867,213 108,884 16,308 (309,625)
------------ ---------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $10,713,841 $111,762 $24,068 $(275,924)
============ ========== ============= =============
</TABLE>
76 DELAWARE POOLED TRUST o 1998 ANNUAL REPORT
<PAGE>
[RESTUBBED FROM TABLE ABOVE]
<TABLE>
<CAPTION>
9/15/98* 11/4/97* Year 12/29/97*
to to Ended to
10/31/98 10/31/98 10/31/98 10/31/98
------------- ------------ ------------- ------------
The
The Real Estate The The
Small-Cap Investment Intermediate Aggregate
Growth Equity Trust Fixed Income Fixed Income
Portfolio Portfolio II Portfolio Portfolio
------------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 9,875 $ 9,891 $1,927,535 $106,665
Dividends 48 331,574 -- --
Foreign tax withheld -- -- -- --
------------ ------------ ------------- ------------
9,923 341,465 1,927,535 106,665
------------ ------------ ------------- ------------
EXPENSES:
Management fees 2,815 41,303 119,736 6,901
Accounting and administration 152 2,240 11,858 681
Reports and statements to shareholders 200 4,716 23,837 10,406
Registration fees 1,470 4,469 57,374 11,198
Professional fees 335 19,210 20,675 2,786
Taxes (other than taxes on income) 80 348 3,600 101
Dividend disbursing and transfer
agent fees and expenses 2 359 12,799 250
Custodian fees 1,627 3,562 38,700 2,816
Directors' fees -- 300 858 247
Amortization of organization expenses -- -- 5,150 --
Other 83 2,034 11,177 477
------------- ------------ ------------- ------------
6,764 78,541 305,764 35,863
Less expenses absorbed or waived by
Delaware Management Company
or Delaware International Advisers Ltd. (3,399) (31,367) (146,011) (26,731)
------------- ------------ ------------- ------------
Total expenses 3,365 47,174 159,753 9,132
------------- ------------ ------------- ------------
NET INVESTMENT INCOME 6,558 294,291 1,767,782 97,533
------------- ------------ ------------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on:
Investments (45,106) (276,394) 420,336 28,577
Foreign currencies -- -- -- --
------------- ------------ ------------- ------------
Net realized gain (loss) (45,106) (276,394) 420,336 28,577
Net change in unrealized appreciation/
depreciation of investments
and foreign currencies 356,345 (784,976) (113,061) 23,124
------------- ------------ ------------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCIES 311,239 (1,061,370) 307,275 51,701
------------- ------------ ------------- ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $317,797 $(767,079) $2,075,057 $149,234
============= ============ ============= ============
</TABLE>
* Date of commencement of operations.
See accompanying notes
1998 ANNUAL REPORT o DELAWARE POOLED TRUST 77
<PAGE>
Delaware Pooled Trust, Inc.
Statements of Operations continued
<TABLE>
<CAPTION>
Year 12/29/97*
Ended to
10/31/98 10/31/98 Year ended 10/31/98
------------- ------------ -----------------------------
The
The Diversified The The
High-Yield Core Global International
Bond Fixed Income Equity Equity
Portfolio Portfolio Portfolio Portfolio
------------- ------------ ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $1,781,003 $203,330 $3,704 $ 1,911,854
Dividends 67,012 -- 96,097 18,591,465
Foreign tax withheld -- (170) (4,919) (1,335,752)
------------- ------------ ------------- -------------
1,848,015 203,160 94,882 19,167,567
------------- ------------ ------------- -------------
EXPENSES:
Management fees 80,874 11,289 23,131 4,214,740
Accounting and administration 7,178 1,035 1,162 221,324
Reports and statements to shareholders 8,967 10,046 5,500 154,452
Registration fees 12,258 10,495 18,525 42,669
Professional fees 3,134 4,250 9,692 51,005
Taxes (other than taxes on income) 1,191 193 1,317 25,086
Dividend disbursing and transfer
agent fees and expenses 8,079 200 1,294 37,670
Custodian fees 10,440 7,338 9,040 248,124
Directors' fees 543 261 323 8,917
Other 4,287 1,024 1,640 107,961
------------- ------------ ------------- -------------
136,951 46,131 71,624 5,111,948
------------- ------------ ------------- -------------
Less expenses absorbed or waived by
Delaware Management Company
or Delaware International Advisers Ltd. (28,960) (31,236) (41,764) --
------------- ------------ ------------- -------------
Total expenses 107,991 14,895 29,860 5,111,948
------------- ------------ ------------- -------------
NET INVESTMENT INCOME 1,740,024 188,265 65,022 14,055,619
------------- ------------ ------------- -------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on:
Investments 373,305 119,205 40,015 (4,025,939)
Foreign currencies -- 4,738 (959) (318,479)
------------- ------------ ------------- -------------
Net realized gain (loss) 373,305 123,943 39,056 (4,344,418)
Net change in unrealized appreciation/
depreciation of investments
and foreign currencies (2,555,347) (96,348) 133,591 13,796,645
------------- ------------ ------------- -------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCIES (2,182,042) 27,595 172,647 9,452,227
------------- ------------ ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $(442,018) $215,860 $237,669 $23,507,846
============= =========== ============= =============
</TABLE>
78 DELAWARE POOLED TRUST o 1998 ANNUAL REPORT
<PAGE>
[RESTUBBED FROM TABLE ABOVE]
<TABLE>
<CAPTION>
Year ended 10/31/98
------------- ---------------------------- -------------
The The The
Labor Select The Global International
International Emerging Fixed Fixed
Equity Markets Income Income
Portfolio Portfolio Portfolio Portfolio
------------- ------------ ------------- -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 518,969 $241,583 $33,541,477 $3,569,130
Dividends 2,515,186 1,087,511 -- --
Foreign tax withheld (177,446) (64,027) -- --
------------- ------------ ------------- -----------
2,856,709 1,265,067 33,541,477 3,569,130
------------- ------------ ------------- -----------
EXPENSES:
Management fees 658,651 431,051 2,649,961 292,924
Accounting and administration 34,057 14,100 209,221 23,109
Reports and statements to shareholders 14,913 18,420 90,106 9,100
Registration fees 13,600 24,946 49,279 18,222
Professional fees -- 15,131 23,246 4,590
Taxes (other than taxes on income) 8,000 2,294 22,874 4,293
Dividend disbursing and transfer
agent fees and expenses 7,099 2,550 34,698 6,580
Custodian fees 39,185 75,642 123,106 26,911
Directors' fees 1,561 726 8,124 877
Other 18,003 17,995 94,253 5,490
------------- ------------ ------------- -----------
795,069 602,855 3,304,868 392,096
------------- ------------ ------------- -----------
Less expenses absorbed or waived by
Delaware Management Company
or Delaware International Advisers Ltd. (44,876) (50,753) (122,948) (41,774)
------------- ------------ ------------- -----------
Total expenses 750,193 552,102 3,181,920 350,322
------------- ------------ ------------- -----------
NET INVESTMENT INCOME 2,106,516 712,965 30,359,557 3,218,808
------------- ------------ ------------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on:
Investments 548,524 (1,460,816) 7,552,453 612,864
Foreign currencies (161,280) (53,191) (7,274,824) (265,107)
------------- ------------ ------------- -----------
Net realized gain (loss) 387,244 (1,514,007) 277,629 347,757
Net change in unrealized appreciation/
depreciation of investments
and foreign currencies 452,819 (16,312,722) 9,179,450 2,144,683
------------- ------------ ------------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCIES 840,063 (17,826,729) 9,457,079 2,492,440
------------- ------------ ------------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $2,946,579 $(17,113,764) $39,816,636 $5,711,248
============= ============ ============= ===========
</TABLE>
1998 ANNUAL REPORT o DELAWARE POOLED TRUST 79
<PAGE>
Delaware Pooled Trust, Inc.
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Year Year 9/15/98* Year
Ended Ended to Ended
10/31/98 10/31/97 10/31/98 10/31/98
------------ ------------ ----------- -------------
The The The The
Large-Cap Large-Cap Growth and Mid-Cap
Value Equity Value Equity Income Growth Equity
Portfolio Portfolio Portfolio Portfolio
------------ ------------ ----------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income (loss) $1,846,628 $1,733,343 $2,878 $7,760
Net realized gain (loss) on investments
and foreign currencies 14,115,039 12,022,384 (5,571) 1,308,614
Net change in unrealized appreciation/
depreciation of investments
and foreign currencies (5,247,826) 4,857,200 114,455 (1,292,306)
------------- ------------ ----------- ------------
Net increase (decrease) in net assets
resulting from operations 10,713,841 18,612,927 111,762 24,068
------------- ------------ ----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (1,837,808) (1,789,049) -- --
Net realized gain on investments (12,031,890) (6,352,621) -- (4,706,261)
------------ ------------ ----------- -----------
(13,869,698) (8,141,670) -- (4,706,261)
------------ ------------ ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 36,847,413 17,492,313 2,000,009 60,373
Net asset value of shares issued upon
reinvestment of dividends from net
investment income and net realized
gain on investments 13,671,296 7,929,503 -- 4,706,261
------------ ------------ ----------- ------------
50,518,709 25,421,816 2,000,009 4,766,634
Cost of shares repurchased (10,606,420) (21,970,059) -- (5,522,390)
------------- ------------ ----------- ------------
Increase (decrease) in net assets derived
from capital share transactions 39,912,289 3,451,757 2,000,009 (755,756)
------------- ------------ ----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS 36,756,432 13,923,014 2,111,771 (5,437,949)
NET ASSETS:
Beginning of period 81,101,898 67,178,884 -- 10,317,447
------------- ------------ ----------- ------------
End of period $117,858,330 $81,101,898 $2,111,771 $ 4,879,498
============= ============ =========== ============
</TABLE>
80 DELAWARE POOLED TRUST o 1998 ANNUAL REPORT
<PAGE>
<TABLE>
<CAPTION>
Year 12/29/97* 9/15/98* 11/4/97*
Ended to to to
10/31/97 10/31/98 10/31/98 10/31/98
------------- ------------- ------------- ------------
The
The The The Real Estate
Mid-Cap Small/Mid-Cap Small-Cap Investment
Growth Equity Value Equity Growth Equity Trust
Portfolio Portfolio Portfolio Portfolio II
------------- ------------- ------------- ------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income (loss) $ (57,532) $ 33,701 $ 6,558 $294,291
Net realized gain (loss) on investments
and foreign currencies 4,684,321 (147,698) (45,106) (276,394)
Net change in unrealized appreciation/
depreciation of investments
and foreign currencies (4,114,485) (161,927) 356,345 (784,976)
------------ ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations 512,304 (275,924) 317,797 (767,079)
------------ ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- -- -- (39,470)
Net realized gain on investments (4,575,497) -- -- --
------------ ----------- ----------- -----------
(4,575,497) -- -- (39,470)
------------ ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 1,889,723 3,000,008 3,000,008 6,529,625
Net asset value of shares issued upon
reinvestment of dividends from net
investment income and net realized
gain on investments 4,575,497 -- -- 39,470
------------ ----------- ----------- -----------
6,465,220 3,000,008 3,000,008 6,569,095
Cost of shares repurchased (20,610,124) -- -- --
------------ ----------- ----------- ----------
Increase (decrease) in net assets derived
from capital share transactions (14,144,904) 3,000,008 3,000,008 6,569,095
------------ ----------- ----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS (18,208,097) 2,724,084 3,317,805 5,762,546
NET ASSETS:
Beginning of period 28,525,544 -- -- --
------------ ----------- ----------- -----------
End of period $10,317,447 $2,724,084 $3,317,805 $5,762,546
============ =========== =========== ===========
</TABLE>
* Date of commencement of operations.
See accompanying notes
1998 ANNUAL REPORT o DELAWARE POOLED TRUST 81
<PAGE>
Delaware Pooled Trust, Inc.
Statements of Changes in Net Assets continued
<TABLE>
<CAPTION>
Year Year 12/29/97* Year 12/2/96*
Ended Ended to Ended to
10/31/98 10/31/97 10/31/98 10/31/98 10/31/97
-----------------------------------------------------------------------
The The The The The
Intermediate Intermediate Aggregate High-Yield High-Yield
Fixed Income Fixed Income Fixed Income Bond Bond
Portfolio Portfolio Portfolio Portfolio Portfolio
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Increase (Decrease) In Net Assets From Operations:
Net investment income $ 1,767,782 $ 1,301,361 $ 97,533 $1,740,024 $ 629,692
Net realized gain on investments and
foreign currencies 420,336 59,570 28,577 373,305 293,180
Net change in unrealized appreciation/
depreciation of investments
and foreign currencies (113,061) 285,894 23,124 (2,555,347) 248,704
-----------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 2,075,057 1,646,825 149,234 (442,018) 1,171,576
-----------------------------------------------------------------------
Distributions to Shareholders From:
Net investment income (1,764,413) (1,301,361) -- (1,296,634) (403,902)
Net realized gain on investments (30,150) -- -- (293,568) --
-----------------------------------------------------------------------
(1,794,563) (1,301,361) -- (1,590,202) (403,902)
-----------------------------------------------------------------------
Capital Share Transactions:
Proceeds from shares sold 2,698,180 18,629,497 2,000,009 9,800,000 10,176,010
Net asset value of shares issued upon
reinvestment of dividends from net
investment income and net realized
gain on investments 1,444,379 1,108,729 -- 1,590,201 403,902
-----------------------------------------------------------------------
4,142,559 19,738,226 2,000,009 11,390,201 10,579,912
Cost of shares repurchased (4,578,520) (235,059) -- -- --
-----------------------------------------------------------------------
Increase (decrease) in net assets derived
from capital share transactions (435,961) 19,503,167 2,000,009 11,390,201 10,579,912
-----------------------------------------------------------------------
Net Increase (Decrease) In Net Assets (155,467) 19,848,631 2,149,243 9,357,981 11,347,586
Net Assets:
Beginning of period 30,366,196 10,517,565 -- 11,347,586 --
-----------------------------------------------------------------------
End of period $30,210,729 $30,366,196 $2,149,243 $20,705,567 $11,347,586
=======================================================================
* Date of commencement of operations.
See accompanying notes
</TABLE>
82 Delaware Pooled Trust o 1998 Annual Report
<PAGE>
<TABLE>
<CAPTION>
12/29/97* Year 10/15/97*
to Ended to
10/31/98 10/31/98 10/31/97
-----------------------------------------
The The The
Diversified Core Global Global
Fixed Income Equity Equity
Portfolio Portfolio Portfolio
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Increase (Decrease) In Net Assets From Operations:
Net investment income $ 188,265 $ 65,022 $ 3,243
Net realized gain on investments and
foreign currencies 123,943 39,056 11,100
Net change in unrealized appreciation/
depreciation of investments
and foreign currencies (96,348) 133,591 (159,467)
-----------------------------------------
Net increase (decrease) in net assets
resulting from operations 215,860 237,669 (145,124)
-----------------------------------------
Distributions to Shareholders From:
Net investment income -- (24,619) --
Net realized gain on investments -- -- --
-----------------------------------------
-- (24,619) --
-----------------------------------------
Capital Share Transactions:
Proceeds from shares sold 3,000,009 -- 3,000,009
Net asset value of shares issued upon
reinvestment of dividends from net
investment income and net realized
gain on investments -- 24,619 --
-----------------------------------------
3,000,009 24,619 3,000,009
Cost of shares repurchased -- -- --
-----------------------------------------
Increase (decrease) in net assets derived
from capital share transactions 3,000,009 24,619 3,000,009
-----------------------------------------
Net Increase (Decrease) In Net Assets 3,215,869 237,669 2,854,885
Net Assets:
Beginning of period -- 2,854,885 --
-----------------------------------------
End of period $3,215,869 $3,092,554 $2,854,885
=========================================
* Date of commencement of operations.
See accompanying notes
</TABLE>
1998 Annual Report o Delaware Pooled Trust 83
<PAGE>
Delaware Pooled Trust, Inc.
Statements of Changes in Net Assets continued
<TABLE>
<CAPTION>
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/98 10/31/97 10/31/98 10/31/97 10/31/98
-------------------------------------------------------------------------------
The The
The The Labor Select Labor Select The
International International International International Emerging
Equity Equity Equity Equity Markets
Portfolio Portfolio Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Increase (Decrease) In Net Assets From Operations:
Net investment income $ 14,055,619 $ 9,221,522 $ 2,106,516 $ 926,460 $ 712,965
Net realized gain (loss) on investments and
foreign currencies (4,344,418) 14,680,399 387,244 639,018 (1,514,007)
Net change in unrealized appreciation/depreciation
of investments and foreign currencies 13,796,645 6,398,012 452,819 3,140,371 (16,312,722)
-------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 23,507,846 30,299,933 2,946,579 4,705,849 (17,113,764)
-------------------------------------------------------------------------------
Distributions to Shareholders From:
Net investment income (19,730,232) (11,268,773) (2,016,614) (1,153,521) (50,474)
Net realized gain on investments (4,749,754) -- -- -- (282,657)
-------------------------------------------------------------------------------
(24,479,986 (11,268,773) (2,016,614) (1,153,521) (333,131)
-------------------------------------------------------------------------------
Capital Share Transactions:
Proceeds from shares sold 134,421,186 182,110,042 53,796,761 25,199,358 32,579,507
Net asset value of shares issued upon reinvestment
of dividends from net investment income and net
realized gain on investments 22,579,574 10,374,375 2,016,614 1,153,521 333,131
-------------------------------------------------------------------------------
157,000,760 192,484,417 55,813,375 26,352,879 32,912,638
Cost of shares repurchased (39,995,300) (11,269,759) (4,288,718) (2,163,117) --
-------------------------------------------------------------------------------
Increase in net assets derived from capital
share transactions 117,005,460 181,214,658 51,524,657 24,189,762 32,912,638
-------------------------------------------------------------------------------
Net Increase In Net Assets 116,033,320 200,245,818 52,454,622 27,742,090 15,465,743
Net Assets:
Beginning of period 500,195,661 299,949,843 50,895,705 23,153,615 18,564,600
-------------------------------------------------------------------------------
End of period $616,228,981 $500,195,661 $103,350,327 $50,895,705 $ 34,030,343
===============================================================================
</TABLE>
84 Delaware Pooled Trust o 1998 Annual Report
<PAGE>
<TABLE>
<CAPTION>
4/14/97* Year Year
to Ended Ended
10/31/97 10/31/98 10/31/97
-------------------------------------------------
The The
The Global Global
Emerging Fixed Fixed
Markets Income Income
Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Increase (Decrease) In Net Assets From Operations:
Net investment income $ 56,347 $ 30,359,557 $ 20,073,472
Net realized gain (loss) on investments and
foreign currencies 253,812 277,629 10,523,901
Net change in unrealized appreciation/depreciation
of investments and foreign currencies (3,656,755) 9,179,450 (10,556,890)
-------------------------------------------------
Net increase (decrease) in net assets
resulting from operations (3,346,596) 39,816,636 20,040,483
-------------------------------------------------
Distributions to Shareholders From:
Net investment income -- (28,369,109 (21,129,839)
Net realized gain on investments -- (6,852,402) (3,784,780)
-------------------------------------------------
-- (35,221,511) (24,914,619)
-------------------------------------------------
Capital Share Transactions:
Proceeds from shares sold 21,911,196 254,190,844 167,798,535
Net asset value of shares issued upon reinvestment
of dividends from net investment income and net
realized gain on investments -- 30,870,291 20,509,749
-------------------------------------------------
21,911,196 285,061,135 188,308,284
Cost of shares repurchased -- (59,991,155) (4,426,796)
-------------------------------------------------
Increase in net assets derived from capital
share transactions 21,911,196 225,069,980 183,881,488
-------------------------------------------------
Net Increase In Net Assets 18,564,600 229,665,105 179,007,352
Net Assets:
Beginning of period -- 431,075,603 252,068,251
-------------------------------------------------
End of period $18,564,600 $660,740,708 $431,075,603
=================================================
</TABLE>
* Date of commencement of operations.
See accompanying notes
1998 Annual Report o Delaware Pooled Trust 85
<PAGE>
Delaware Pooled Trust, Inc.
Statements of Changes in Net Assets continued
<TABLE>
<CAPTION>
Year 4/11/97*
Ended to
10/31/98 10/31/97
------------------------------------
The The
International International
Fixed Income Fixed Income
Portfolio Portfolio
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase In Net Assets From Operations:
Net investment income $ 3,218,808 $ 746,063
Net realized gain on investments and foreign currencies 347,757 411,752
Net change in unrealized appreciation/depreciation of investments
and foreign currencies 2,144,683 718,243
-------------------------------------
Net increase in net assets resulting from operations 5,711,248 1,876,058
-------------------------------------
Distributions to Shareholders From:
Net investment income (2,259,498) (157,519)
Net realized gain on investments (78,262) --
-------------------------------------
(2,337,760) (157,519)
-------------------------------------
Capital Share Transactions:
Proceeds from shares sold 51,119,928 31,857,788
Net asset value of shares issued upon reinvestment of dividends
from net investment income and net realized gain on investments 2,337,760 157,519
-------------------------------------
53,457,688 32,015,307
Cost of shares repurchased (2,568,493) --
-------------------------------------
Increase in net assets derived from capital share transactions 50,889,195 32,015,307
-------------------------------------
Net Increase In Net Assets 54,262,683 33,733,846
Net Assets:
Beginning of period 33,733,856 10
-------------------------------------
End of period $ 87,996,539 $ 33,733,856
=====================================
</TABLE>
* Date of commencement of operations.
See accompanying notes
86 Delaware Pooled Trust o 1998 Annual Report
<PAGE>
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout each period
were as follows:
<TABLE>
<CAPTION>
The Large-Cap Value Equity Portfolio
- ----------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/98 10/31/97 10/31/96 10/31/95 10/31/94
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $18.530 $16.460 $14.660 $13.080 $12.730
Income from investment operations:
Net investment income 0.308 0.381 0.440 0.430 0.320
Net realized and unrealized gain
on investments 2.022 3.599 2.960 1.980 0.653
---------------------------------------------------------------
Total from investment operations 2.330 3.980 3.400 2.410 0.973
---------------------------------------------------------------
Less dividends and distributions:
Dividends from net investment income (0.380) (0.410) (0.440) (0.340) (0.280)
Distributions from net realized gain
on investments (2.700) (1.500) (1.160) (0.490) (0.343)
---------------------------------------------------------------
Total dividends and distributions (3.080) (1.910) (1.600) (0.830) (0.623)
---------------------------------------------------------------
Net asset value, end of period $17.780 $18.530 $16.460 $14.660 $13.080
===============================================================
Total return 13.50% 26.73% 24.87% 19.77% 7.96%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $117,858 $81,102 $67,179 $51,947 $37,323
Ratio of expenses to average net assets 0.68% 0.66% 0.67% 0.68% 0.68%
Ratio of expenses to average net assets
prior to expense limitation 0.71% 0.67% 0.70% 0.71% 0.82%
Ratio of net investment income to average
net assets 1.91% 2.15% 2.85% 3.33% 3.26%
Ratio of net investment income to average
net assets prior to expense limitation 1.88% 2.14% 2.83% 3.30% 3.12%
Portfolio turnover 85% 73% 74% 88% 73%
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes
1998 Annual Report o Delaware Pooled Trust 87
<PAGE>
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout the period
was as follows:
The Growth and Income Portfolio
- --------------------------------------------------------------------------------
9/15/98(1)
to
10/31/98
Net asset value, beginning of period $8.500
Income from investment operations:
Net investment income 0.012
Net realized and unrealized gain
on investments 0.458
-------
Total from investment operations 0.470
-------
Less dividends and distributions:
Dividends from net investment income none
Distributions from net realized gain
on investments none
-------
Total dividends and distributions none
-------
Net asset value, end of period $8.970
=======
Total return 5.53%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $2,112
Ratio of expenses to average net assets 0.68%
Ratio of expenses to average net assets
prior to expense limitation 1.74%
Ratio of net investment income to average
net assets 1.15%
Ratio of net investment income to average
net assets prior to expense limitation 0.09%
Portfolio turnover 53%
- --------------------------------------------------------------------------------
(1) Date of commencement of operations; ratios have been annualized and total
return has not been annualized.
See accompanying notes
88 Delaware Pooled Trust o 1998 Annual Report
<PAGE>
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout each period
were as follows:
The Mid-Cap Growth Equity Portfolio
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/98 10/31/97 10/31/96 10/31/95 10/31/94
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $13.680 $14.570 $12.860 $11.010 $11.200
Income from investment operations:
Net investment income (loss)(1) 0.011 (0.117) (0.019) 0.043 0.008
Net realized and unrealized gain
on investments 0.009 1.607 2.392 2.055 0.032
---------------------------------------------------------
Total from investment operations 0.020 1.490 2.373 2.098 0.040
---------------------------------------------------------
Less dividends and distributions:
Dividends from net investment income none none (0.043) (0.012) (0.020)
Distributions from net realized gain
on investments (6.240) (2.380) (0.620) (0.236) (0.210)
---------------------------------------------------------
Total dividends and distributions (6.240) (2.380) (0.663) (0.248) (0.230)
---------------------------------------------------------
Net asset value, end of period $7.460 $13.680 $14.570 $12.860 $11.010
=========================================================
Total return 1.47% 11.84% 19.19% 19.61% 0.34%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $4,879 $10,317 $28,526 $29,092 $22,640
Ratio of expenses to average net assets 0.59% 0.93% 0.90% 0.93% 0.93%
Ratio of expenses to average net assets
prior to expense limitation 1.71% 1.40% 1.01% 1.08% 1.17%
Ratio of net investment income (loss) to average
net assets 0.13% (0.29%) (0.18%) 0.37% 0.07%
Ratio of net investment income (loss) to average
net assets prior to expense limitation (0.99%) (0.76%) (0.29%) 0.22% (0.17%)
Portfolio turnover 154% 117% 95% 64% 43%
</TABLE>
- --------------------------------------------------------------------------------
(1) Per share information for the year ended October 31, 1998 was based on the
average shares outstanding method.
See accompanying notes
1998 Annual Report o Delaware Pooled Trust 89
<PAGE>
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout the period
was as follows:
The Small/Mid-Cap Value Equity Portfolio
- --------------------------------------------------------------------------------
12/29/97(1)
to
10/31/98
Net asset value, beginning of period $8.500
Income (loss) from investment operations:
Net investment income 0.096
Net realized and unrealized loss
on investments (0.876)
-------
Total from investment operations (0.780)
-------
Less dividends and distributions:
Dividends from net investment income none
Distributions from net realized gain
on investments none
-------
Total dividends and distributions none
-------
Net asset value, end of period $7.720
=======
Total return (9.18%)
Ratios and supplemental data:
Net assets, end of period (000 omitted) $2,724
Ratio of expenses to average net assets 0.87%
Ratio of expenses to average net assets
prior to expense limitation 1.37%
Ratio of net investment income to average
net assets 1.34%
Ratio of net investment income to average
net assets prior to expense limitation 0.84%
Portfolio turnover 155%
- --------------------------------------------------------------------------------
(1) Date of commencement of operations; ratios have been annualized and total
return has not been annualized.
See accompanying notes
90 Delaware Pooled Trust o 1998 Annual Report
<PAGE>
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout the period
was as follows:
The Small-Cap Growth Equity Portfolio
- --------------------------------------------------------------------------------
9/15/98(1)
to
10/31/98
Net asset value, beginning of period $8.500
Income from investment operations:
Net investment income 0.019
Net realized and unrealized gain
on investments 0.881
-------
Total from investment operations 0.900
-------
Less dividends and distributions:
Dividends from net investment income none
Distributions from net realized gain
on investments none
-------
Total dividends and distributions none
-------
Net asset value, end of period $9.400
=======
Total return 10.59%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $3,318
Ratio of expenses to average net assets 0.89%
Ratio of expenses to average net assets
prior to expense limitation 1.78%
Ratio of net investment income to average
net assets 1.72%
Ratio of net investment income to average
net assets prior to expense limitation 0.83%
Portfolio turnover 98%
- --------------------------------------------------------------------------------
(1) Date of commencement of operations; ratios have been annualized and total
return has not been annualized.
See accompanying notes
1998 Annual Report o Delaware Pooled Trust 91
<PAGE>
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout the period
was as follows:
The Real Estate Investment Trust Portfolio II
- --------------------------------------------------------------------------------
11/4/97(1)
to
10/31/98
Net asset value, beginning of period $16.340
Income (loss) from investment operations:
Net investment income 0.749
Net realized and unrealized loss
on investments (2.739)
-------
Total from investment operations (1.990)
-------
Less dividends and distributions:
Dividends from net investment income (0.120)
Distributions from net realized gain
on investments none
-------
Total dividends and distributions (0.120)
-------
Net asset value, end of period $14.230
=======
Total return (12.27%)
Ratios and supplemental data:
Net assets, end of period (000 omitted) $5,763
Ratio of expenses to average net assets 0.86%
Ratio of expenses to average net assets
prior to expense limitation 1.43%
Ratio of net investment income to average
net assets 5.34%
Ratio of net investment income to average
net assets prior to expense limitation 4.77%
Portfolio turnover 54%
- --------------------------------------------------------------------------------
(1) Date of commencement of operations; ratios have been annualized and total
return has not been annualized.
See accompanying notes
92 Delaware Pooled Trust o 1998 Annual Report
<PAGE>
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout each period
were as follows:
The Intermediate Fixed Income Portfolio
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Year 3/12/96(1)
Ended Ended to
10/31/98 10/31/97 10/31/96
<S> <C> <C> <C>
Net asset value, beginning of period $10.090 $10.010 $10.000
Income from investment operations:
Net investment income 0.593 0.605 0.386
Net realized and unrealized gain
on investments 0.100 0.080 0.010
--------------------------------
Total from investment operations 0.693 0.685 0.396
--------------------------------
Less dividends and distributions:
Dividends from net investment income (0.593) (0.605) (0.386)
Distributions from net realized gain
on investments (0.010) none none
--------------------------------
Total dividends and distributions (0.603) (0.605) (0.386)
--------------------------------
Net asset value, end of period $10.180 $10.090 $10.010
================================
Total return 7.06% 7.09% 4.08%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $30,211 $30,366 $10,518
Ratio of expenses to average net assets 0.53% 0.53% 0.53%
Ratio of expenses to average net assets
prior to expense limitation 1.01% 0.84% 1.20%
Ratio of net investment income to average
net assets 5.86% 6.05% 6.14%
Ratio of net investment income to average
net assets prior to expense limitation 5.38% 5.74% 5.47%
Portfolio turnover 181% 205% 232%
</TABLE>
- --------------------------------------------------------------------------------
(1) Date of commencement of operations; ratios have been annualized and total
return has not been annualized.
See accompanying notes
1998 Annual Report o Delaware Pooled Trust 93
<PAGE>
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout the period
was as follows:
The Aggregate Fixed Income Portfolio
- --------------------------------------------------------------------------------
12/29/97(1)
to
10/31/98
Net asset value, beginning of period $8.500
Income from investment operations:
Net investment income 0.415
Net realized and unrealized gain
on investments 0.215
-------
Total from investment operations 0.630
-------
Less dividends and distributions:
Dividends from net investment income none
Distributions from net realized gain
on investments none
-------
Total dividends and distributions none
-------
Net asset value, end of period $9.130
=======
Total return 7.41%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $2,149
Ratio of expenses to average net assets 0.53%
Ratio of expenses to average net assets prior
to expense limitation 2.07%
Ratio of net investment income to average
net assets 5.62%
Ratio of net investment income to average
net assets prior to expense limitation 4.08%
Portfolio turnover 438%
- --------------------------------------------------------------------------------
(1) Date of commencement of operations; ratios have been annualized and total
return has not been annualized.
See accompanying notes
94 Delaware Pooled Trust o 1998 Annual Report
<PAGE>
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout each period
were as follows:
The High-Yield Bond Portfolio
- --------------------------------------------------------------------------------
Year 12/2/96(1)
Ended to
10/31/98 10/31/97
Net asset value, beginning of period $11.180 $10.000
Income from investment operations:
Net investment income 0.993 0.788
Net realized and unrealized gain (loss)
on investments (0.925) 0.957
---------------------
Total from investment operations 0.068 1.745
---------------------
Less dividends and distributions:
Dividends from net investment income (0.890) (0.565)
Distributions from net realized gain
on investments (0.288) none
---------------------
Total dividends and distributions (1.178) (0.565)
---------------------
Net asset value, end of period $10.070 $11.180
=====================
Total return 0.30% 17.92%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $20,706 $11,348
Ratio of expenses to average net assets 0.59% 0.59%
Ratio of expenses to average net assets
prior to expense limitation 0.75% 0.79%
Ratio of net investment income to average
net assets 9.53% 9.05%
Ratio of net investment income to average
net assets prior to expense limitation 9.37% 8.85%
Portfolio turnover 211% 281%
- --------------------------------------------------------------------------------
(1) Date of commencement of operations; ratios have been annualized and total
return has not been annualized.
See accompanying notes
1998 Annual Report * Delaware Pooled Trust 95
<PAGE>
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout the period
was as follows:
The Diversified Core Fixed Income Portfolio
- --------------------------------------------------------------------------------
12/29/97(1)
to
10/31/98
Net asset value, beginning of period $8.500
Income from investment operations:
Net investment income(2) 0.533
Net realized and unrealized gain
on investments and foreign currencies 0.077
------
Total from investment operations 0.610
------
Less dividends and distributions:
Dividends from net investment income none
Distributions from net realized gain
on investments none
------
Total dividends and distributions none
------
Net asset value, end of period $9.110
======
Total return 7.18%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $3,216
Ratio of expenses to average net assets 0.57%
Ratio of expenses to average net assets
prior to expense limitation 1.74%
Ratio of net investment income to average
net assets 7.12%
Ratio of net investment income to average
net assets prior to expense limitation 5.95%
Portfolio turnover 312%
- --------------------------------------------------------------------------------
(1) Date of commencement of operations; ratios have been annualized and total
return has not been annualized.
(2) Per share information for the period ended October 31, 1998 was based on the
average shares outstanding method.
See accompanying notes
96 Delaware Pooled Trust * 1998 Annual Report
<PAGE>
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout each period
were as follows:
The Global Equity Portfolio
- --------------------------------------------------------------------------------
Year 10/15/97(1)
Ended to
10/31/98 10/31/97
Net asset value, beginning of period $8.120 $8.500
Income (loss) from investment operations:
Net investment income(2) 0.184 0.009
Net realized and unrealized gain (loss)
on investments and foreign currencies 0.486 (0.389)
-------------------
Total from investment operations 0.670 (0.380)
-------------------
Less dividends and distributions:
Dividends from net investment income (0.070) none
Distributions from net realized gain
on investments none none
-------------------
Total dividends and distributions (0.070) none
-------------------
Net asset value, end of period $8.720 $8.120
===================
Total return 8.31% (4.47%)
Ratios and supplemental data:
Net assets, end of period (000 omitted) $3,093 $2,855
Ratio of expenses to average net assets 0.96% 0.96%
Ratio of expenses to average net assets
prior to expense limitation 2.31% 2.95%
Ratio of net investment income to average
net assets 2.10% 2.54%
Ratio of net investment income to average
net assets prior to expense limitation 0.75% 0.55%
Portfolio turnover 47% 0%
- --------------------------------------------------------------------------------
(1) Date of commencement of operations; ratios have been annualized and total
return has not been annualized.
(2) Per share information for the year ended October 31, 1998 was based on the
average shares outstanding method.
See accompanying notes
1998 Annual Report * Delaware Pooled Trust 97
<PAGE>
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout each period
were as follows:
<TABLE>
<CAPTION>
The International Equity Portfolio
- ----------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/98 10/31/97 10/31/96 10/31/95 10/31/94
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 15.860 $ 14.780 $ 13.120 $ 13.110 $11.990
Income from investment operations:
Net investment income(1) 0.400 0.329 0.506 0.475 0.144
Net realized and unrealized gain
on investments and foreign currencies 0.370 1.271 1.794 0.001 1.236
---------------------------------------------------------
Total from investment operations 0.770 1.600 2.300 0.476 1.380
---------------------------------------------------------
Less dividends and distributions:
Dividends from net investment income (0.610) (0.520) (0.490) (0.170) (0.160)
Distributions from net realized gain
on investments (0.150) none (0.150) (0.296) (0.100)
---------------------------------------------------------
Total dividends and distributions (0.760) (0.520) (0.640) (0.466) (0.260)
---------------------------------------------------------
Net asset value, end of period $ 15.870 $ 15.860 $ 14.780 $ 13.120 $13.110
=========================================================
Total return 4.96% 11.01% 18.12% 3.91% 11.66%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $616,229 $500,196 $299,950 $156,467 $70,820
Ratio of expenses to average net assets 0.91% 0.93% 0.89% 0.90% 0.94%
Ratio of expenses to average net assets
prior to expense limitation 0.91% 0.93% 0.89% 0.90% 0.97%
Ratio of net investment income to average
net assets 2.50% 2.21% 4.36% 4.81% 1.36%
Ratio of net investment income to average
net assets prior to expense limitation 2.50% 2.21% 4.36% 4.81% 1.33%
Portfolio turnover 5% 8% 8% 20% 22%
- ----------------------------------------------------------------------------------------------------------------------
(1) Per share information for the year ended October 31, 1998 was based on the average shares outstanding method.
</TABLE>
See accompanying notes
98 Delaware Pooled Trust * 1998 Annual Report
<PAGE>
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout each period
were as follows:
<TABLE>
<CAPTION>
The Labor Select International Equity Portfolio
- -----------------------------------------------------------------------------------------------------------------
Year Year 12/19/95(1)
Ended Ended to
10/31/98 10/31/97 10/31/96
<S> <C> <C> <C>
Net asset value, beginning of period $ 12.990 $11.690 $10.000
Income from investment operations:
Net investment income(2) 0.334 0.474 0.479
Net realized and unrealized gain
on investments and foreign currencies 0.444 1.346 1.311
---------------------------------
Total from investment operations 0.778 1.820 1.790
---------------------------------
Less dividends and distributions:
Dividends from net investment income (0.448) (0.520) (0.100)
Distributions from net realized gain
on investments none none none
---------------------------------
Total dividends and distributions (0.448) (0.520) (0.100)
---------------------------------
Net asset value, end of period $ 13.320 $12.990 $11.690
=================================
Total return 6.18% 16.01% 17.97%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $103,350 $50,896 $23,154
Ratio of expenses to average net assets 0.88% 0.89% 0.92%
Ratio of expenses to average net assets
prior to expense limitation 0.93% 1.06% 1.30%
Ratio of net investment income to average
net assets 2.46% 2.37% 6.64%
Ratio of net investment income to average
net assets prior to expense limitation 2.41% 2.20% 6.26%
Portfolio turnover 2% 11% 7%
- -----------------------------------------------------------------------------------------------------------------
(1) Date of commencement of operations; ratios have been annualized and total return has not been annualized.
(2) Per share information for the year ended October 31, 1998 was based on the average shares outstanding method.
</TABLE>
See accompanying notes
1998 Annual Report * Delaware Pooled Trust 99
<PAGE>
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout each period
were as follows:
The Emerging Markets Portfolio
- --------------------------------------------------------------------------------
Year 4/14/97(1)
Ended to
10/31/98 10/31/97
Net asset value, beginning of period $ 9.200 $10.000
Income (loss) from investment operations:
Net investment income(2) 0.153 0.028
Net realized and unrealized loss
on investments and foreign currencies (3.348) (0.828)
--------------------
Total from investment operations (3.195) (0.800)
--------------------
Less dividends and distributions:
Dividends from net investment income (0.025) none
Distributions from net realized gain
on investments (0.140) none
--------------------
Total dividends and distributions (0.165) none
--------------------
Net asset value, end of period $5.840 $9.200
====================
Total return (35.30%) (8.00%)
Ratios and supplemental data:
Net assets, end of period (000 omitted) $34,030 $18,565
Ratio of expenses to average net assets 1.55% 1.55%
Ratio of expenses to average net assets
prior to expense limitation 1.69% 2.02%
Ratio of net investment income to average
net assets 1.98% 0.74%
Ratio of net investment income to average
net assets prior to expense limitation 1.84% 0.27%
Portfolio turnover 39% 46%
- --------------------------------------------------------------------------------
(1) Date of commencement of operations; ratios have been annualized and total
return has not been annualized.
(2) Per share information for the year ended October 31, 1998 was based on the
average shares outstanding method.
See accompanying notes
100 Delaware Pooled Trust * 1998 Annual Report
<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 Year
Ended Ended Ended Ended Ended
10/31/98 10/31/97 10/31/96 10/31/95 10/31/94
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $11.220 $11.620 $11.040 $9.790 $11.090
Income from investment operations:
Net investment income(1) 0.610 0.721 0.777 0.736 0.419
Net realized and unrealized gain (loss)
on investments and foreign currencies 0.037 (0.116) 0.725 0.924 (0.193)
---------------------------------------------------------
Total from investment operations 0.647 0.605 1.502 1.660 0.226
---------------------------------------------------------
Less dividends and distributions:
Dividends from net investment income (0.630) (0.835) (0.720) (0.410) (0.949)
Distributions from net realized gain
on investments (0.177) (0.170) (0.202) none (0.577)
---------------------------------------------------------
Total dividends and distributions (0.807) (1.005) (0.922) (0.410) (1.526)
---------------------------------------------------------
Net asset value, end of period $11.060 $11.220 $11.620 $11.040 $9.790
=========================================================
Total return 6.28% 5.59% 16.40% 17.38% 2.07%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $660,741 $431,076 $252,068 $99,161 $42,266
Ratio of expenses to average net assets 0.60% 0.60% 0.60% 0.60% 0.62%
Ratio of expenses to average net assets
prior to expense limitation 0.62% 0.65% 0.66% 0.68% 0.76%
Ratio of net investment income to average
net assets 5.71% 6.28% 8.52% 6.73% 3.62%
Ratio of net investment income to average
net assets prior to expense limitation 5.69% 6.23% 8.46% 6.65% 3.48%
Portfolio turnover 131% 114% 63% 77% 205%
</TABLE>
- --------------------------------------------------------------------------------
(1) Per share information for the year ended October 31, 1998 was based on the
average shares outstanding method.
See accompanying notes
1998 Annual Report o Delaware Pooled Trust 101
<PAGE>
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout each period
were as follows:
The International Fixed Income Portfolio
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year 4/11/97(1)
Ended to
10/31/98 10/31/97
<S> <C> <C>
Net asset value, beginning of period $10.660 $10.000
Income from investment operations:
Net investment income(2) 0.558 0.236
Net realized and unrealized gain on investments
and foreign currencies 0.045 0.474
--------------------
Total from investment operations 0.603 0.710
--------------------
Less dividends and distributions:
Dividends from net investment income (0.492) (0.050)
Distributions from net realized gain on investments (0.021) none
--------------------
Total dividends and distributions (0.513) (0.050)
--------------------
Net asset value, end of period $10.750 $10.660
====================
Total return 5.96% 7.11%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $87,997 $33,734
Ratio of expenses to average net assets 0.60% 0.60%
Ratio of expenses to average net assets
prior to expense limitation 0.67% 0.86%
Ratio of net investment income to average
net assets 5.47% 6.05%
Ratio of net investment income to average
net assets prior to expense limitation 5.40% 5.79%
Portfolio turnover 104% 145%
</TABLE>
- --------------------------------------------------------------------------------
(1) Date of commencement of operations; ratios have been annualized and total
return has not been annualized.
(2) Per share information for the year ended October 31, 1998 was based on the
average shares outstanding method.
See accompanying notes
102 Delaware Pooled Trust o 1998 Annual Report
<PAGE>
Delaware Pooled Trust, Inc.
Notes to Financial Statements
October 31, 1998
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 19 separate
Portfolios (collectively, the "Portfolios" and individually the "Portfolio").
The Large-Cap Value Equity Portfolio (formerly The Defensive Equity Portfolio),
The Growth and Income Portfolio, The Mid-Cap Growth Equity Portfolio (formerly
The Aggressive Growth Portfolio), The Small/Mid-Cap Value Equity Portfolio, The
Small-Cap Growth Equity Portfolio, The Real Estate Investment Trust Portfolio,
The Real Estate Investment Trust Portfolio II, The Intermediate Fixed Income
Portfolio (formerly The Fixed Income Portfolio), The Aggregate Fixed Income
Portfolio, The High-Yield Bond Portfolio, The Diversified Core Fixed Income
Portfolio, The Global Equity Portfolio, The International Equity Portfolio, The
Labor Select International Equity Portfolio, The Emerging Markets Portfolio, The
Global Fixed Income Portfolio and The International Fixed Income Portfolio had
commenced operations prior to October 31, 1998. The Limited-Term Maturity
Portfolio and The Asset Allocation Portfolio had not commenced operations as of
October 31, 1998. These financial statements and related notes pertain to all
the portfolios with the exception of The Real Estate Investment Trust Portfolio,
which is included in a separate report.
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 each Portfolio is valued. Long-term
debt securities are valued by an independent pricing service and such prices are
believed to reflect the fair value of such securities. Money market instruments
having less than 60 days to maturity are valued at amortized cost which
approximates market value. 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 qualify or 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 Investments Family 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.
Foreign Currency Transactions--Transactions denominated in foreign currencies
are recorded at the prevailing exchange rates on the valuation date. 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 do
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 (losses)
for financial reporting purposes, whereas such components are treated as
ordinary income (loss) for federal income tax purposes.
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.
1998 Annual Report o Delaware Pooled Trust 103
<PAGE>
Other--Expenses common to all funds within the Delaware Investments Family 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. 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. Original issue
discounts are accreted to interest income over the lives of the respective
securities.
The Intermediate 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
Large-Cap Value Equity, The Aggregate Fixed Income, The Diversified Core Fixed
Income, 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 Growth
and Income, The Mid-Cap Growth Equity, The Small/Mid-Cap Value Equity, The
Small-Cap Growth Equity, The Real Estate Investment Trust II, 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 expenses of the Fund are paid through "soft dollar" arrangements with
brokers. The amount of these expenses is less than 0.01% of each Portfolio's
average daily net assets.
2. Investment Management and Other Transactions with Affiliates
In accordance with the terms of the Investment Management Agreement, Delaware
Management Company ("DMC"), the Investment Manager of The Large-Cap Value Equity
Portfolio, The Growth and Income Portfolio, The Mid-Cap Growth Equity Portfolio,
The Small/Mid-Cap Value Equity Portfolio, The Small-Cap Growth Equity Portfolio,
The Real Estate Investment Trust Portfolio II, The Intermediate Fixed Income
Portfolio, The Aggregate Fixed Income Portfolio, The High-Yield Bond Portfolio
and The Diversified Core Fixed Income Portfolio and Delaware International
Advisers Ltd. ("DIAL"), the Investment Manager of The Global Equity Portfolio,
The International Equity Portfolio, The Labor Select International Equity
Portfolio, The Emerging Markets 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 Growth and Income Portfolio, The
Small/Mid-Cap Value Equity Portfolio, The Small-Cap Growth Equity Portfolio, The
Real Estate Investment Trust Portfolio II, The Aggregate Fixed Income Portfolio,
The High-Yield Bond Portfolio, The Diversified Core Fixed Income Portfolio, The
Global Equity Portfolio, The Labor Select International Equity Portfolio, The
Emerging Markets Portfolio and The International Fixed Income Portfolio, which
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 II. 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 the following percentages of net assets
through April 30, 1999.
104 Delaware Pooled Trust o 1998 Annual Report
<PAGE>
The management fee rates and the operating expense limitation rates for the
period ended October 31, 1998 are as follows:
<TABLE>
<CAPTION>
Operating
Expense
Management Limitation as
fee as a percentage a percentage
of average daily of average daily
net assets net assets
(per annum) (per annum)
- --------------------------------------------------------------------------------------------
<S> <C> <C>
The Large-Cap Value Equity Portfolio 0.55% 0.68%
The Growth and Income Portfolio 0.55% 0.68%
The Mid-Cap Growth Equity Portfolio 0.80% 0.93%
The Small/Mid-Cap Value Equity Portfolio 0.75% 0.89%
The Small-Cap Growth Equity Portfolio 0.75% 0.89%
The Real Estate Investment Trust Portfolio II 0.75% 0.86%
The Intermediate Fixed Income Portfolio 0.40% 0.53%
The Aggregate Fixed Income Portfolio 0.40% 0.53%
The High-Yield Bond Portfolio 0.45% 0.59%
The Diversified Core Fixed Income Portfolio 0.43% 0.57%
The Global Equity Portfolio 0.75% 0.96%
The International Equity Portfolio 0.75% 0.96%
The Labor Select International Equity Portfolio 0.75% 0.96%
The Emerging Markets Portfolio 1.20% 1.55%
The Global Fixed Income Portfolio 0.50% 0.60%
The International Fixed Income Portfolio 0.50% 0.60%
=============================================================================================
</TABLE>
The Fund has engaged Delaware Service Company, Inc. ("DSC"), an affiliate of
DMC, to provide dividend disbursing, transfer agent and accounting services.
Each Portfolio pays DSC a monthly fee based on the number of shareholder
accounts, shareholder transactions and average net assets, subject to certain
minimums.
1998 Annual Report o Delaware Pooled Trust 105
<PAGE>
On October 31, 1998, the Fund had liabilities payable to affiliates as follows:
<TABLE>
<CAPTION>
Dividend
disbursing,
transfer
agent, Other
Investment accounting expenses
Management fees and payable
fee payable to other expenses to DMC
DMC or DIAL payable to DSC and affiliates
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
The Large-Cap Value Equity Portfolio $32,465 $4,372 $1,835
The Growth and Income Portfolio -- 202 9
The Mid-Cap Growth Equity Portfolio -- 551 150
The Small/Mid-Cap Value Equity Portfolio 1,483 114 29
The Small-Cap Growth Equity Portfolio -- 162 14
The Real Estate Investment Trust Portfolio II -- 246 1,069
The Intermediate Fixed Income Portfolio -- 1,409 530
The Aggregate Fixed Income Portfolio -- 92 23
The High-Yield Bond Portfolio 3,615 1,100 314
The Diversified Core Fixed Income Portfolio -- 139 34
The Global Equity Portfolio -- 128 131
The International Equity Portfolio 128,321 19,990 9,974
The Labor Select International Equity Portfolio 61,525 4,484 1,409
The Emerging Markets Portfolio 10,709 2,311 529
The Global Fixed Income 273,135 24,311 9,848
The International Fixed Income Portfolio 34,366 3,901 1,138
====================================================================================================
</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.
3. Investments
During the period ended October 31, 1998, the Fund made purchases and sales of
investment securities other than U.S. government securities and temporary cash
investments for each Portfolio as follows:
Purchases Sales
- --------------------------------------------------------------------------------
The Large-Cap Value Equity Portfolio $104,720,284 $78,883,487
The Growth and Income Portfolio 2,117,886 133,160
The Mid-Cap Growth Equity Portfolio 8,442,032 13,010,268
The Small/Mid-Cap Value Equity Portfolio 6,740,215 3,795,174
The Small-Cap Growth Equity Portfolio 2,618,791 259,214
The Real Estate Investment Trust Portfolio II 9,716,038 2,980,724
The Intermediate Fixed Income Portfolio 35,644,775 30,726,166
The Aggregate Fixed Income Portfolio 4,514,145 2,710,167
The High-Yield Bond Portfolio 47,542,648 36,527,213
The Diversified Core Fixed Income Portfolio 10,049,971 7,011,810
The Global Equity Portfolio 1,462,594 1,396,012
The International Equity Portfolio 132,814,441 25,673,355
The Labor Select International Equity Portfolio 50,467,111 1,578,028
The Emerging Markets Portfolio 41,021,578 12,092,206
The Global Fixed Income Portfolio 747,617,911 468,710,033
The International Fixed Income Portfolio 95,597,205 54,749,095
================================================================================
For the year ended October 31, 1998, purchases include $3,332,119 of investment
securities received from shareholders in exchange for 206,517 shares sold by The
Real Estate Investment Trust Portfolio II.
106 Delaware Pooled Trust o 1998 Annual Report
<PAGE>
During the period ended October 31, 1998, the Fund made purchases and sales of
U.S. government securities for each Portfolio as follows:
Purchases Sales
- --------------------------------------------------------------------------------
The Intermediate Fixed Income Portfolio $20,567,114 $25,845,972
The Aggregate Fixed Income Portfolio 5,091,933 4,823,898
The Diversified Core Fixed Income Portfolio 1,209,602 1,182,594
The Global Fixed Income Portfolio 87,301,094 176,860,625
The International Fixed Income Portfolio 6,802,371 943,984
================================================================================
At October 31, 1998, the aggregate cost of securities and unrealized
appreciation (depreciation) for federal income tax purposes for each Portfolio
were as follows:
<TABLE>
<CAPTION>
Net
Cost Aggregate Aggregate unrealized
of unrealized unrealized appreciation
Investments appreciation depreciation (depreciation)
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
The Large-Cap Value Equity Portfolio $108,362,701 $14,289,265 ($5,549,690) $8,739,575
The Growth and Income Portfolio 2,000,154 149,341 (34,886) 114,455
The Mid-Cap Growth Equity Portfolio 4,568,060 666,390 (285,606) 380,784
The Small/Mid-Cap Value Equity Portfolio 2,901,872 97,956 (278,136) (180,180)
The Small-Cap Growth Equity Portfolio 3,047,722 368,740 (13,646) 355,094
The Real Estate Investment Trust Portfolio II 6,610,260 42,737 (898,625) (855,888)
The Intermediate Fixed Income Portfolio 30,425,200 395,959 (103,027) 292,932
The Aggregate Fixed Income Portfolio 2,168,619 25,980 (2,856) 23,124
The High-Yield Bond Portfolio 22,952,567 115,271 (2,421,914) (2,306,643)
The Diversified Core Fixed Income Portfolio 3,267,186 42,303 (139,218) (96,915)
The Global Equity 3,074,228 298,258 (327,352) (29,094)
The International Equity Portfolio 578,589,517 106,286,739 (55,056,229) 51,230,510
The Labor Select International Equity Portfolio 100,089,990 11,478,397 (6,501,815) 4,976,582
The Emerging Markets Portfolio 54,088,890 533,852 (20,505,926) (19,972,074)
The Global Fixed Income Portfolio 634,874,066 21,388,866 (8,389,645) 12,999,221
The International Fixed Income Portfolio 83,246,658 3,629,625 (821,012) 2,808,613
=================================================================================================================
</TABLE>
For federal income tax purposes, the Fund had accumulated capital losses at
October 31,1998 for each Portfolio as follows:
Year of
Expiration
2006
- --------------------------------------------------------------------
The Growth and Income Portfolio $5,571
The Small/Mid-Cap Value Equity Portfolio 129,445
The Small-Cap Growth Equity Portfolio 43,856
The Real Estate Investment Trust Portfolio II 205,482
The International Equity Portfolio 4,025,939
The Emerging Markets Portfolio 1,460,816
====================================================================
1998 Annual Report o Delaware Pooled Trust 107
<PAGE>
4. Capital Stock
Transactions in capital stock shares were as follows:
<TABLE>
<CAPTION>
Shares issued
upon reinvestment
of distributions from
net investment
income and net Net
Shares realized gain on Shares Increase
Period ended October 31, 1998*: sold investments repurchased (decrease)
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
The Large-Cap Value Equity Portfolio 2,047,119 806,189 (601,948) 2,251,360
The Growth and Income Portfolio 235,295 -- -- 235,295
The Mid-Cap Growth Equity Portfolio 7,360 649,139 (756,255) (99,756)
The Small/Mid-Cap Value Equity Portfolio 352,942 -- -- 352,942
The Small-Cap Growth Equity Portfolio 352,942 -- -- 352,942
The Real Estate Investment Trust Portfolio II 402,461 2,430 -- 404,891
The Intermediate Fixed Income Portfolio 267,057 142,619 (452,109) (42,433)
The Aggregate Fixed Income Portfolio 235,295 -- -- 235,295
The High-Yield Bond Portfolio 893,420 147,157 -- 1,040,577
The Diversified Core Fixed Income Portfolio 352,942 -- -- 352,942
The Global Equity Portfolio -- 3,021 -- 3,021
The International Equity Portfolio 8,333,867 1,502,294 (2,527,187) 7,308,974
The Labor Select International Equity Portfolio 3,993,613 157,733 (313,618) 3,837,728
The Emerging Markets Portfolio 3,769,833 38,872 -- 3,808,705
The Global Fixed Income Portfolio 24,585,699 2,917,091 (6,170,271) 21,332,519
The International Fixed Income Portfolio 5,046,957 232,266 (255,532) 5,023,691
===================================================================================================================
Period ended October 31, 1997**:
- -------------------------------------------------------------------------------------------------------------------
The Large-Cap Value Equity Portfolio 1,030,185 518,747 (1,252,701) 296,231
The Mid-Cap Growth Equity Portfolio 141,433 367,510 (1,712,815) (1,203,872)
The Intermediate 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 Global Equity Portfolio 351,701 -- -- 351,701
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 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
===================================================================================================================
</TABLE>
*The Real Estate Investment Trust Portfolio II commenced operations on 11/4/97,
The Small/Mid-Cap Value Equity Portfolio, The Aggregate Fixed Income Portfolio,
and The Diversified Core Fixed Income Portfolio commenced operations on
12/29/97, and The Growth and Income Portfolio and The Small-Cap Growth Equity
Portfolio commenced operations on 9/15/98.
**The High-Yield Bond Portfolio commenced operations on 12/2/96, The
International Fixed Income Portfolio commenced operations on 4/11/97, The
Emerging Markets Portfolio commenced operations on 4/14/97 and The Global Equity
Portfolio commenced operations on 10/15/97.
108 DELAWARE POOLED TRUST o 1998 ANNUAL REPORT
<PAGE>
5. Lines of Credit
The following Portfolios have a committed line of credit for the following
amounts:
The Large-Cap Value Equity Portfolio $4,000,000
The Mid-Cap Growth Equity Portfolio 200,000
The Real Estate Investment Trust Portfolio II 200,000
The Intermediate Fixed Income Portfolio 1,200,000
The High-Yield Bond Portfolio 500,000
The Global Equity Portfolio 100,000
The International Equity Portfolio 20,800,000
The Labor Select International Equity Portfolio 3,000,000
The Emerging Markets Portfolio 1,000,000
The Global Fixed Income Portfolio 19,100,000
The International Fixed Income Portfolio 1,500,000
================================================================================
No amounts were outstanding at October 31, 1998, or at any time during the
period.
6. Foreign Exchange Contracts
The International Equity, The Labor Select International Equity, The Global
Equity, The Emerging Markets, The Global Fixed Income, The International Fixed
Income and The Diversified Core Fixed Income Portfolios will generally enter
into forward foreign currency contracts as a way of managing foreign exchange
rate risk. The portfolios may enter into these contracts to fix the U.S. dollar
value of a security that they have 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. The portfolios may also use these contracts to hedge the U.S. dollar
value of securities they already own 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 portfolios as an unrealized gain or loss. When the contract is closed,
the portfolios record 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 portfolios' 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 portfolios 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, 1998:
The Global Equity Portfolio
<TABLE>
<CAPTION>
In Value of Unrealized
Exchange Contract at Settlement Appreciation
Contracts to Deliver For 10/31/98 Date (Depreciation)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
144,750 British Pounds $244,000 $241,339 1/29/99 $2,661
</TABLE>
1998 ANNUAL REPORT o DELAWARE POOLED TRUST 109
<PAGE>
The International Equity Portfolio
<TABLE>
<CAPTION>
In Value of Unrealized
Exchange Contract at Settlement Appreciation
Contracts to Receive For 10/31/98 Date (Depreciation)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
590,528 British Pounds $989,547 $989,075 11/2/98 (472)
1,134,505 British Pounds 1,907,103 1,899,959 11/4/98 (7,144)
27,401,488 French Francs 4,966,693 4,948,066 11/30/98 (18,627)
779,833 New Zealand Dollars 411,362 412,851 11/5/98 1,489
1,201,190 New Zealand Dollars 637,832 635,940 11/6/98 (1,892)
Contracts to Deliver
- ---------------------------------------------------------------------------------------------------------------
38,181,650 Belgian Francs $1,116,829 $1,116,105 11/16/98 724
26,154,849 British Pounds 44,135,000 43,607,370 1/29/99 527,630
The Labor Select International Equity Portfolio
Contracts to Receive
- ---------------------------------------------------------------------------------------------------------------
12,758,919 French Francs $2,308,429 $2,303,962 11/30/98 ($4,467)
Contracts to Deliver
- ---------------------------------------------------------------------------------------------------------------
4,740,347 British Pounds $8,000,000 $7,903,471 1/29/99 $96,529
14,049,743 Belgian Francs 412,258 410,694 11/16/98 1,564
</TABLE>
7. Credit and Market Risk
Some countries in which The International Equity, The Labor Select International
Equity, The Global Equity, The Emerging Markets, The Global Fixed Income, The
International Fixed Income and The Diversified Core Fixed Income Portfolios 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
portfolios 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
portfolios.
The High-Yield Bond and The Diversified Core Fixed Income Portfolios 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 Intermediate Fixed Income, The Aggregate Fixed Income and The Diversified
Core Fixed Income Portfolios 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 Portfolio, other than The Diversified Core Fixed Income, The Aggregate
Fixed Income, The Small/Mid-Cap Value Equity, The Labor Select International
Equity, The High-Yield Bond, The International Fixed Income, The Small-Cap
Growth Equity and The Growth and Income Portfolios 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 Diversified Core Fixed Income, The Aggregate
Fixed Income, The Small/Mid-Cap Value Equity, The Labor Select International
Equity, The High-Yield Bond, The International Fixed Income, The Small-Cap
Growth Equity and The Growth and Income Portfolios may each invest no more than
15% of total assets in illiquid securities.
110 DELAWARE POOLED TRUST o 1998 ANNUAL REPORT
<PAGE>
The relative illiquidity of some of these securities may adversely affect the
Portfolio's ability to dispose of such securities in a timely manner and at a
fair price when it is necessary to liquidate such securities.
8. Securities Lending
Security loans are required at all times to be secured by U.S. Treasury
obligations and/or cash collateral at least equal to 102% of the market value of
securities on loan 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 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 Portfolio or, at the
option of the lending agent, replace the loaned securities. The market value of
securities on loan to brokers and the related collateral received at October 31,
1998 for each portfolio were as follows:
Market Value of
Securities on Loan Collateral
- --------------------------------------------------------------------------------
The International Equity Portfolio $76,825,440 $80,286,588
The Labor Select International Equity Portfolio 7,923,897 8,364,929
The Global Fixed Income Portfolio 70,991,493 75,177,750
================================================================================
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. (comprised of The Large-Cap Value Equity Portfolio, The Growth and
Income Portfolio, The Mid-Cap Growth Equity Portfolio, The Small/Mid-Cap Value
Equity Portfolio, The Small-Cap Growth Equity Portfolio, The Real Estate
Investment Trust Portfolio II, The Intermediate Fixed Income Portfolio, The
Aggregate Fixed Income Portfolio, The High-Yield Bond Portfolio, The Diversified
Core Fixed Income Portfolio, The Global Equity Portfolio, The International
Equity Portfolio, The Labor Select International Equity Portfolio, The Emerging
Markets Portfolio, The Global Fixed Income Portfolio and The International Fixed
Income Portfolio) (the "Fund") as of October 31, 1998, and the related
statements of operations, statements of changes in net assets and 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, 1998, 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, 1998, and the results of their operations, the changes in their net assets
and their financial highlights for each of the periods indicated therein, in
conformity with generally accepted accounting principles.
/s/ Ernst & Young LLP
-----------------------------------
Ernst & Young LLP
Philadelphia, Pennsylvania
December 4, 1998
1998 ANNUAL REPORT o DELAWARE POOLED TRUST 111
<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 II)
George H. Burwell
Vice President and Senior Portfolio Manager
George E. Deming
Vice President and Senior Portfolio Manager
Elizabeth A. Desmond
Director and Senior Portfolio Manager
Roger A. Early
Vice President and Senior Portfolio Manager
Gerald S. Frey
Vice President and Senior Portfolio Manager
Kimberly T. Gilliam
Assistant Vice President, Real Estate Investments
Lincoln Investment Management, Inc. (subadviser to
The Real Estate Investment Trust Portfolio II)
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 II)
Paul A. Matlack
Vice President and Senior Portfolio Manager
Francis X. Morris
Vice President and Senior Portfolio Manager
Gerald T. Nichols
Vice President and Senior Portfolio Manager
Gary A. Reed
Vice President and Senior Portfolio Manager
<PAGE>
Timothy W. Sanderson
Director and Senior Portfolio Manager
Ian G. Sims
Director and Senior Portfolio Manager
Babak Zenouzi
Vice President and Portfolio Manager
Custodian
The Chase Manhattan Bank
4 Metrotech Center
Brooklyn, New York 11245
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 Business Trust
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
112 Delaware Pooled Trust 1998 Annual Report
<PAGE>
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) 255-1162
