<PAGE>
2000
annual report
Delaware Pooled Trust
U.S. Equities
The Large-Cap Value Equity Portfolio
The Equity Income Portfolio
The Core Equity Portfolio
The Select Equity Portfolio
The All-Cap Growth Equity Portfolio
The Mid-Cap Growth Equity Portfolio
The Small-Cap Value Equity Portfolio
The Small-Cap Growth Equity Portfolio
The Real Estate Investment Trust Portfolio II
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
Balanced
The Balanced Portfolio
International Equities
The International Large-Cap Equity Portfolio
The Global Equity Portfolio
The International Equity Portfolio
The Labor Select International Equity Portfolio
The International Small-Cap Portfolio
The Emerging Markets Portfolio
International Fixed Income
The Global Fixed Income Portfolio
The International Fixed Income Portfolio
[LOGO]
<PAGE>
Contents
Portfolio Returns ....................................................... 2-3
Portfolio Objectives .................................................... 4-5
The Large-Cap Value Equity Portfolio Review ............................. 6
The Equity Income Portfolio Review ...................................... 8
The Core Equity Portfolio Review ........................................ 10
The Select Equity Portfolio Review ...................................... 12
The All-Cap Growth Equity Portfolio Review .............................. 14
The Mid-Cap Growth Equity Portfolio Review .............................. 16
The Small-Cap Value Equity Portfolio Review ............................. 18
The Small-Cap Growth Equity Portfolio Review ............................ 20
The Real Estate Investment Trust Portfolio II Review .................... 22
The Intermediate Fixed Income Portfolio Review .......................... 24
The Aggregate Fixed Income Portfolio Review ............................. 26
The High-Yield Bond Portfolio Review .................................... 28
The Diversified Core Fixed Income Portfolio Review ...................... 30
The Balanced Portfolio Review ........................................... 32
The International Large-Cap Equity Portfolio Review ..................... 34
The Global Equity Portfolio Review ...................................... 36
The International Equity Portfolio Review ............................... 38
The Labor Select International Equity Portfolio Review .................. 40
The International Small-Cap Portfolio Review ............................ 42
The Emerging Markets Portfolio Review ................................... 44
The Global Fixed Income Portfolio Review ................................ 46
The International Fixed Income Portfolio Review ......................... 48
Financial Statements .................................................... 50
Delaware Pooled Trust
Delaware Pooled Trust, 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
Investments, a full-service investment-management organization that invests more
than $45 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 Management Company, a Philadelphia-based division of Delaware
Management Business Trust, serves as investment adviser for The Large-Cap Value
Equity, The Equity Income, The Core Equity, The Select Equity, The All-Cap
Growth Equity, The Mid-Cap Growth Equity, The Small-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, The Diversified
Core Fixed Income and The Balanced Portfolios. Delaware International Advisers
Ltd., a London-based affiliate of Delaware Management Company, serves as
investment adviser for The International Large-Cap Equity, The Global Equity,
The International Equity, The Labor Select International Equity, The
International Small-Cap, 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, One Commerce Square, Philadelphia,
Pennsylvania 19103.
2000 Annual Report o Delaware Pooled Trust 1
<PAGE>
Portfolio Returns
Periods ending October 31, 2000
<TABLE>
<CAPTION>
Average Annual Total Return* One Three Five Since
Year Years Years Inception+
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
The Large-Cap Value Equity Portfolio 6.42% 8.39% 15.04% 15.42%
S&P 500 Index 6.09 17.61 21.74 17.91
------------------------------------------------------------------------------------------------------------------------------------
The Equity Income Portfolio 5.90 -- -- (1.08)
S&P 500 Index 6.09 -- -- 4.28
------------------------------------------------------------------------------------------------------------------------------------
The Core Equity Portfolio (5.17) -- -- 0.73
Russell 1000 Index 9.06 -- -- 20.62
------------------------------------------------------------------------------------------------------------------------------------
The Select Equity Portfolio 1.63 -- -- 2.01
Russell 3000 Index 9.63 -- -- 6.46
------------------------------------------------------------------------------------------------------------------------------------
The All-Cap Growth Equity Portfolio** -- -- -- 3.18
Russell 3000 Growth Index -- -- -- (12.72)
------------------------------------------------------------------------------------------------------------------------------------
The Mid-Cap Growth Equity Portfolio 53.86 32.41 25.35 17.88
Russell MidCap Growth Index 38.67 25.05 23.51 18.36
------------------------------------------------------------------------------------------------------------------------------------
The Small-Cap Value Equity Portfolio 10.72 -- -- 7.73
Russell 2000 Value Index 17.30 -- -- 14.26
------------------------------------------------------------------------------------------------------------------------------------
The Small-Cap Growth Equity Portfolio 47.57 -- -- 52.82
Russell 2000 Growth Index 16.16 -- -- 24.56
------------------------------------------------------------------------------------------------------------------------------------
The Real Estate Investment Trust Portfolio II 25.78 -- -- 2.62
NAREIT Equity REIT Index 18.28 -- -- (1.39)
------------------------------------------------------------------------------------------------------------------------------------
The Intermediate Fixed Income Portfolio 7.01 5.07 -- 5.69
Lehman Brothers Government/Corporate
Intermediate Bond Index 6.46 5.47 -- 5.91
------------------------------------------------------------------------------------------------------------------------------------
The Aggregate Fixed Income Portfolio 5.88 -- -- 4.27
Lehman Brothers Aggregate Bond Index 7.30 -- -- 5.45
------------------------------------------------------------------------------------------------------------------------------------
The High-Yield Bond Portfolio 4.02 1.07 -- 5.15
Salomon Smith Barney High-Yield Cash Pay Index (0.69) 1.33 -- 3.97
------------------------------------------------------------------------------------------------------------------------------------
The Diversified Core Fixed Income Portfolio 7.59 -- -- 6.94
Lehman Brothers Aggregate Bond Index 7.30 -- -- 5.45
------------------------------------------------------------------------------------------------------------------------------------
The Balanced Portfolio (1.04) -- -- (5.88)
60% S&P 500 Index/
40% Lehman Brothers Aggregate Bond Index 6.85 -- -- 5.33
</TABLE>
2 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
<TABLE>
<CAPTION>
One Three Five Since
Year Years Years Inception+
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
The International Large-Cap Equity Portfolio**++ -- -- -- (3.78)
Morgan Stanley Capital International
EAFE Stock Index (net) -- -- -- (6.16)
------------------------------------------------------------------------------------------------------------------------------------
The Global Equity Portfolio++ (0.81) 4.79 -- 3.15
Morgan Stanley Capital International
World Stock Index (net) 1.09 13.33 -- 13.33
------------------------------------------------------------------------------------------------------------------------------------
The International Equity Portfolio 3.35 6.80 9.86 10.11
Morgan Stanley Capital International
EAFE Stock Index (net) (2.90) 9.42 8.65 8.36
------------------------------------------------------------------------------------------------------------------------------------
The Labor Select International Equity Portfolio 3.07 6.49 -- 10.87
Morgan Stanley Capital International
EAFE Stock Index (net) (2.90) 9.42 -- 7.46
------------------------------------------------------------------------------------------------------------------------------------
The International Small-Cap Portfolio ++ (2.96) -- -- (0.98)
Salomon Smith Barney
Extended Market Index (ex-U.S.) (1.07) -- -- (0.63)
------------------------------------------------------------------------------------------------------------------------------------
The Emerging Markets Portfolio ++ (2.40) (6.94) -- (8.09)
Morgan Stanley Capital International
Emerging Markets Free (Equity) Index (8.81) (3.09) -- (7.65)
------------------------------------------------------------------------------------------------------------------------------------
The Global Fixed Income Portfolio (9.51) (2.07) 2.91 6.30
Salomon Smith Barney World
Government Bond Index (5.08) 1.38 2.42 5.53
------------------------------------------------------------------------------------------------------------------------------------
The International Fixed Income Portfolio (13.54) (3.85) -- (1.37)
Salomon Smith Barney Non-U.S. World
Government Bond Index (9.70) (0.38) -- 1.14
------------------------------------------------------------------------------------------------------------------------------------
</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 fees 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 12 months. 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.
+ The inception dates for each Delaware Pooled Trust Portfolio are as follows:
Large-Cap Value Equity, February 3, 1992; Equity Income, June 30, 1999; Core
Equity, September 15, 1998; Select Equity, June 29, 1999; All-Cap Growth Equity,
March 31, 2000; Mid-Cap Growth Equity, February 27, 1992; Small-Cap Value
Equity, March 29, 1999; 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; Balanced, June 30, 1999;
International Large-Cap Equity, December 14, 1999; Global Equity, October 15,
1997; International Equity, February 4, 1992; Labor Select International Equity,
December 19, 1995; International Small-Cap, July 20, 1999; 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.
++ These four Portfolios charge a purchase reimbursement fee and a redemption
reimbursement fee; these fees are not reflected in the returns shown above. The
Portfolio's returns would have been lower had these fees been deducted. Specific
fee amounts for each Portfolio are cited in the individual Portfolio reviews.
2000 Annual Report o Delaware Pooled Trust 3
<PAGE>
Portfolio Objectives
The Large-Cap Value 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, offer capital gains
potential as well.
The Equity Income Portfolio seeks to provide the highest possible current income
by investing primarily in common stocks that provide the potential for income
and capital appreciation without undue risk to principal.
The Core Equity Portfolio seeks 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 Select Equity Portfolio seeks to provide maximum long-term capital
appreciation by investing primarily in exchange-traded equity securities. The
20-30 stocks we select must pass three screens: stocks that have already been
selected by our portfolio managers for other Delaware funds, quantitative models
that help rank the stocks, and fundamental analysis on the top 25% in that
ranking.
The All-Cap Growth Equity Portfolio seeks long-term capital appreciation by
investing in stocks of small-, medium- and large-capitalization companies that,
in the opinion of Delaware, offer significant long-term growth potential at the
time of purchase.
The Mid-Cap Growth Equity Portfolio seeks maximum long-term capital
appreciation; current income is expected to be incidental. The Portfolio seeks
to achieve its objective by investing in the stocks of medium-sized companies
that, in the opinion of Delaware, offer, at the time of purchase, significant
long-term growth potential.
<PAGE>
The Small-Cap Value Equity Portfolio seeks long-term capital appreciation by
investing primarily in equity securities of small-capitalization companies that
Delaware believes to be undervalued relative to the long-term earning power of
the companies concerned, and which, at the time of purchase, generally have
market capitalizations between $500 million and $1.5 billion and are listed on a
national securities exchange or NASDAQ.
The Small-Cap Growth Equity Portfolio seeks long-term capital appreciation. 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 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 seeks maximum long-term total return,
consistent with reasonable risk, by investing in a diversified portfolio of
investment-grade bonds, including U.S. government, mortgage-backed, corporate,
and other fixed-income securities.
The Aggregate Fixed Income Portfolio seeks maximum long-term total return,
consistent with reasonable risk, by investing in a diversified portfolio of
investment-grade fixed income securities, including U.S. government securities,
mortgage-backed securities, corporate bonds, and other fixed-income securities.
4 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
The High-Yield Bond Portfolio seeks high total return. The Portfolio seeks to
invest primarily in bonds rated B- or higher by Standard & Poor's Rating Group,
B3 or higher by Moody's Investors Service, Inc., or in bonds that are unrated.
The Diversified Core Fixed Income Portfolio seeks maximum long-term total
return, consistent with reasonable risk, by using a multi-sector investment
approach, investing assets principally in investment-grade, high-yield, and
foreign bonds.
The Balanced Portfolio seeks a balance of capital appreciation, income, and
preservation of capital by investing primarily in common stocks of established
companies that Delaware believes have the potential for long-term capital
appreciation. The Portfolio also invests at least 25% of its assets in various
types of fixed-income securities, such as U.S. government securities and
corporate bonds.
The International Large-Cap Equity Portfolio seeks long-term total return by
investing in large-capitalization stocks of non-U.S. corporations located mainly
in developed countries. In Delaware's opinion, the stocks of these companies
will be undervalued at the time of purchase based on our fundamental analysis.
The Global Equity Portfolio seeks long-term growth without undue risk to
principal by investing in global equity securities that provide the potential
for capital appreciation and income. The Portfolio seeks to invest in stocks
that, in the opinion of Delaware, are undervalued at the time of purchase, based
on rigorous fundamental analysis conducted by the investment adviser. 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 Equity Portfolio seeks 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, are undervalued at the time of purchase, based on rigorous fundamental
analysis conducted by the investment adviser.
<PAGE>
The Labor Select International Equity Portfolio seeks 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, 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 International Small-Cap Portfolio seeks long-term capital appreciation by
investing primarily in smaller non-U.S. companies, which may include companies
located or operating in established or emerging countries.
The Emerging Markets Portfolio seeks long-term capital appreciation by investing
primarily in stocks of issuers located or operating in emerging countries.
The Global Fixed Income Portfolio seeks current income 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 current income 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.
2000 Annual Report o Delaware Pooled Trust 5
<PAGE>
Large-Cap Value Equity:
Strong Performance In Second Half
After three years of investors' focusing almost exclusively on growth stocks,
the tide appears to have shifted. Investor sentiment began to change almost
overnight in March 2000. At the end of September, value stocks finished a second
consecutive calendar quarter of strong performance, outperforming the Standard &
Poor's 500 Index for the first time in nearly three years. Although the
Large-Cap Value Equity Portfolio performed poorly in the first half of its
fiscal year, returns were positive in the second half. Returns for its fiscal
year were slightly above those of the S&P 500 Index--6.42% for the Portfolio
versus 6.09% for the S&P 500.
Financial services continues to be our largest sector weighting, contributing to
positive performance. In the past six months we increased our holdings in
property/casualty insurance companies, which benefited from their first rate
increases in several years. We bought Allstate Insurance and Ace Ltd. Other new
financial sector companies are Federal Home Loan Association, whose price rose
when Congress was unsuccessful in its attempt to rescind its backing of the
government agencies. Prices were also hurt by the Federal Reserve's interest
rate hikes, but rebounded when the rates appeared to hold steady.
The Portfolio remains overweighted vs. the S&P 500 Index in energy. Premiums are
now being paid for companies with visible earnings growth, and domestic oil and
gas companies are particularly attractive because they are not subject to
currency fluctuations. We took profits in Chevron and Columbia Energy.
We believe technology issues will continue to be on the defensive. The S&P 500
Index recently reduced its technology weighting, and we remain underweighted as
well. However, the telecommunications sector appears strong. We purchased SBC
Communications and Verizon Communications, two Regional Bell Operating Companies
(RBOCs) with high visible earnings, low valuations and strong cash flow.
<PAGE>
Average Annual Total Return*
Periods ending October 31, 2000
-------------------------------------------------
One Year Five Years Since Inception
6.42% 15.04% 15.42%
-------------------------------------------------
Growth of $10,000*
Large-Cap Value Equity Portfolio S&P 500 Index ($000)
03-Feb-92 $10,000.00 10
30-Jun-92 $10,550.04 10.5
31-Dec-92 $11,355.43 11
30-Jun-93 $12,527.49 11.5
30-Dec-93 $13,584.51 12
30-Jun-94 $13,816.94 11.6
28-Dec-94 $14,025.98 12.5
30-Jun-95 $16,486.42 12.5
27-Dec-95 $18,712.41 14.7
30-Jun-96 $20,165.85 16.5
12-Dec-96 $22,352.81 18
30-Jun-97 $26,534.38 19.1
16-Dec-97 $29,513.73 22.2
22-Jun-98 $32,040.60 27
18-Dec-98 $32,521.15 27.6
22-Jun-99 $35,238.18 31.3
17-Dec-99 $31,720.85 31.7
30-Jun-00 $31,114.50 37.4
31-Oct-00 $35,031.00 42.3
* 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. The returns for each index have been calculated from the start of
the month closest to the corresponding Portfolio's inception date.
An expense limitation was in effect for The Large-Cap Value Equity Portfolio
during the periods shown. Performance would have been lower if the expense
limitation was not in effect.
6 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
Going forward, we continue to favor interest-rate-sensitive stocks and will
focus on financial services companies, particularly property/casualty insurance
companies. We feel the healthcare/pharmaceutical sector also has a positive
outlook: good demographics as the population ages, good pricing and strong unit
growth. These shares were impacted before the election, and now appear
attractive.
Stock selection remains key to the Portfolio's performance. We continue to focus
on companies with well-above-average dividend yields, and seek bargain stocks
that have fallen out of favor but whose businesses remain sound and whose
valuations are compelling.
Portfolio Manager
George E. Deming
Mr. Deming received a bachelor's degree in Economics and Political Science from
the University of Vermont and a master's degree in International Affairs from
the University of Pennsylvania's Wharton School. Before joining Delaware in
1978, he was responsible for institutional portfolio management at White Weld &
Co. He is a member of the Financial Analysts of Philadelphia.
<PAGE>
Portfolio Profile
October 31, 2000
Total net assets ...................................... $82.9 million
Inception date ..................................... February 3, 1992
Asset composition (based on total net assets)
Common stocks ............................................. 98.91%
Cash equivalents and other net assets ...................... 1.09%
Number of holdings ............................................... 77
Top 10 holdings
1. SBC Communications
2. Exxon Mobil
3. McGraw-Hill
4. Alcoa
5. El Paso Energy
6. Mellon Financial
7. Kimberly-Clark
8. Fannie Mae
9. Aon
10. Freddie Mac
Industry Composition (based on total net assets)
Banking & Finance 22.00%
Food, Beverage & Tobacco 9.33%
Energy 8.67%
Telecommunications 8.30%
Healthcare & Pharmaceuticals 7.02%
Consumer Products 6.78%
Utilities 4.66%
Insurance 4.48%
Cable, Media & Publishing 3.96%
Automobiles & Automotive Parts 3.89%
Electronics & Electrical Equipment 2.99%
Leisure, Lodging & Entertainment 2.99%
Paper & Forest Products 2.56%
Chemicals 2.40%
Metals & Mining 2.09%
Industrial Machinery 2.06%
Computers & Technology 1.74%
Retail 1.22%
Aerospace & Defense 0.97%
Transportation & Shipping 0.80%
Net cash & other assets 1.09%
2000 Annual Report o Delaware Pooled Trust 7
<PAGE>
Equity Income:
Portfolio Benefiting From Value Rebound
The Equity Income Portfolio witnessed a positive return for its fiscal year
ended October 31, 2000, although it slightly lagged the returns of its benchmark
over the same period. The Portfolio posted a 5.90% return versus 6.09% for the
S&P 500 Index.
Value-oriented investing has been out of favor since mid-1998, when emphasis on
large-cap, fast-growing technology companies became the rage. Growth stocks led
the market until March of 2000 when market sentiment began to turn. Since then,
some investors seemed disillusioned with technology and growth investing and
seeking balance in their portfolios have been buyers of value-oriented
investments. Although the market has been very volatile, it has broadened and
value investing appears to be coming back into favor. As many Internet companies
began to unravel, traditional investment rules again apply. The market is now
beginning to recognize solid companies with good fundamentals selling at low
premiums.
Since the Portfolio's inception on June 30, 1999, we have remained true to our
mission, emphasizing value over growth. Therefore, our technology weightings
have been low relative to the general market, and performance has suffered. Now
that investors are recognizing value shares, we are beginning to deliver
positive returns. In our opinion, March 10, 2000 served as a general turning
point for value stocks in terms of performance over the past few years. For the
period from March 1, 2000 to October 31, 2000, the Equity Income Portfolio had a
total return of 20.44%. This is particularly impressive when compared to the
indices: over the same period, the S&P 500 returned 3.0% and the NASDAQ was down
35%.
Over the past year, the Equity Income Portfolio has been focusing on investing
in the "new economy" by purchasing undervalued "old economy" companies that are
applying new technologies to their business models. The new technologies are
helping these companies improve their competitive position and increase market
share. Consequently, they are delivering better-than-expected earnings growth
and their stocks have driven our good performance in the latter half of the
year. These stocks include Alcoa, Kimberly-Clark and General Motors.
Average Annual Total Return*
Periods ending October 31, 2000
---------------------------------
One Year Since Inception
5.90% (1.08)%
---------------------------------
Growth of $10,000*
Equity Income Portfolio S&P 500 Index ($000)
30-Jun-99 $10,000.00 10
30-Sep-99 $9,117.64 9.7
31-Dec-99 $9,258.00 10
31-Mar-00 $8,780.16 10.2
30-Jun-00 $8,732.38 10.7
30-Sep-00 $9,449.13 10.6
31-Oct-00 $9,855.29 10.6
* 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. The returns for each index have been calculated from the start of
the month closest to the corresponding Portfolio's inception date.
An expense limitation was in effect for The Equity Income Portfolio during the
periods shown. Performance would have been lower if the expense limitation was
not in effect.
8 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
We also increased our weighting in financial services, and we particularly like
property/casualty insurance issues, which are benefiting from their first rate
increases in several years. Two insurance brokerages in the Portfolio are Marsh
& McLennan and Aon. We also own Chase Manhattan Corp., as well as non-bank
financials, such as Fannie Mae (FNMA), which did well when Congress backed away
from its attempt to rescind its backing of government agencies.
We have been net buyers of healthcare, consumer cyclicals, and economically
sensitive stocks, such as aluminum, paper and chemical companies. During the
second half of the year, we took profits in energy and utilities, which did well
when prices began to rise.
Going forward, we believe the economy is still strong despite a modest slowdown
in economic growth here and abroad. We anticipate a soft landing ahead, with no
prospect of a recession in the near term in our view. Earnings growth remains
good in many sectors, and we are having no problems finding companies poised to
produce better-than-expected earnings growth over the next six months and
selling at low valuations because of high energy prices and the current
political landscape.
Portfolio Manager
John B. Fields
Mr. Fields holds an MBA in Finance and Investments from Ohio State University.
He joined Delaware in 1992. Previously he was Director of Equity Research at
Comerica Bank and Director of Domestic Equity Management at DuPont. He is a
Chartered Financial Analyst.
<PAGE>
Portfolio Profile
October 31, 2000
Total net assets ..................................... $107.0 million
Inception date ........................................ June 30, 1999
Asset composition (based on total net assets)
Common stocks ............................................. 94.57%
Corporate bonds ............................................ 2.42%
Cash equivalents and other net assets ...................... 3.01%
Number of holdings .............................................. 106
Top 10 holdings
1. Fannie Mae
2. American Home Products
3. Kimberly-Clark
4. Alcoa
5. American General
6. Exxon Mobil
7. Bristol-Myers Squibb
8. Aon
9. SBC Communications
10. Baxter International
Industry Composition (based on total net assets)
Banking & Finance 16.64%
Healthcare & Pharmaceuticals 10.55%
Insurance 9.82%
Energy 9.51%
Telecommunications 6.36%
Food, Beverage & Tobacco 5.53%
Consumer Products 5.02%
Utilities 4.86%
Computers & Technology 3.81%
Cable, Media & Publishing 3.46%
Industrial Machinery 3.01%
Automobiles & Automotive Parts 2.88%
Metals & Mining 2.41%
Electronics & Electrical Equipment 2.13%
Leisure, Lodging & Entertainment 2.09%
Retail 2.06%
Chemicals 1.89%
Paper & Forest Products 1.16%
Aerospace & Defense 0.70%
Textiles, Apparel & Furniture 0.68%
Bonds 2.42%
Net Cash & Other Assets 3.01%
2000 Annual Report o Delaware Pooled Trust 9
<PAGE>
Core Equity:
"Growth At A Reasonable Price" Returns To Favor
The Core Equity Portfolio adhered to its strategy of investing in companies we
consider undervalued that have consistent, stable earnings growth. The Portfolio
experienced a noticeable pick-up in performance toward the end of the fiscal
year when our investment strategy started to return to favor, specifically from
August through October. However, the Portfolio registered an overall loss of
(5.17)% for the 12-month period ended October 31, 2000.
Our disappointing performance resulted primarily from the market's very narrow
focus on highly valued momentum-driven technology stocks in the first half of
our fiscal period. In April, when the market began to focus once again on
valuations and earnings, the Portfolio's performance picked up relative to the
overall market. And because of changes in the valuations of numerous technology
companies, we were able to increase our exposure to this dynamic sector. From
August through October, as we began to see more attention paid to growth at a
reasonable price, our performance improved materially.
Among our holdings, stocks in the energy, financial services and consumer
staples sectors, all performed well. The Portfolio benefited from strong
performance from Amerada Hess and Halliburton, among others.
Our investments in financial companies, such as MBNA and Capital One Financial,
and in government services enterprises such as Federal Home Loan Mortgage
Corporation (Freddie Mac), performed well over the fiscal year. In consumer
staples, we benefited by owning Best Foods, a very high quality company that was
acquired by Unilever.
The Portfolio also experienced some disappointments. Many investors who held
companies that missed their earnings or downgraded their forecasts got stung. In
our case, Honeywell, which has since been acquired by General Electric, and
Procter & Gamble missed earnings targets.
Average Annual Total Return*
Periods ending October 31, 2000
---------------------------------
One Year Since Inception
(5.17)% 0.73%
---------------------------------
Growth of $10,000*
Core Equity Portfolio Russell 1000 Index ($000)
15-Sep-98 $10,000.00 10
30-Sep-98 $9,694.11 10.8
17-Dec-98 $11,276.50 12.6
31-Mar-99 $10,840.06 13.2
30-Jun-99 $11,878.07 12.7
30-Sep-99 $10,415.43 14.7
17-Dec-99 $10,477.91 14.1
31-Mar-00 $10,347.08 15.4
30-Jun-00 $10,382.76 14.9
30-Sep-00 $10,216.26 15.7
31-Oct-00 $10,156.79 14.8
* 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 1000 Index is an unmanaged index and a theoretical
measure of stock-market performance rather than an actual available investment.
The returns for each index have been calculated from the start of the month
closest to the corresponding Portfolio's inception date.
An expense limitation was in effect for The Core Equity Portfolio during the
periods shown. Performance would have been lower if the expense limitation was
not in effect.
10 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
A major factor in our overall underperformance was our substantial
underweighting in technology stocks. Early in our fiscal period, we held just
15% of the Portfolio's assets in technology stocks, compared with a much larger
technology weighting for the Russell 1000 Index. Our focus on stocks with
reasonable valuations prevented us from buying many of the high-flying
technology stocks.
However, as stock prices in the technology sector declined over the past six
months, we took advantage of opportunities to purchase some high-quality
companies that we believed had returned to more reasonable valuations while
continuing to reach their earnings targets. Our recent additions in this sector
include EMC Corp, Electronic Data Systems and First Data. These companies have
consistent earnings growth, but have traded at relative discounts to their
earnings history and to the market.
Corporate profits appear to be slowing, due in part to rising costs and to a
natural economic slowing after a prolonged period of expansion. This type of
environment is generally positive for our investing style, as it tends to favor
solid companies that report consistent earnings. In our opinion, it appears more
likely that the Federal Reserve Board may begin lowering interest rates next
year. We are looking for opportunities in stocks that tend to perform well in
the early stages of the economic cycle, such as retail stocks. Generally, we are
confident about investment opportunities for the Portfolio over the next year.
Portfolio Manager
Francis X. Morris
Mr. Morris received a bachelor's degree at Providence College and an MBA degree
at Widener University. He joined Delaware in 1997. He previously served as Vice
President and Director of Equity Research at PNC Asset Management. He is
President of the Financial Analysts Society of Philadelphia and is a member of
the Association for Investment Management and Research and the National
Association of Petroleum Investment Analysts.
<PAGE>
Portfolio Profile
October 31, 2000
Total net assets ....................................... $2.0 million
Inception date ................................... September 15, 1998
Asset composition (based on total net assets)
Common stocks ............................................. 95.71%
Cash equivalents and other net assets ...................... 4.29%
Number of holdings ............................................... 61
Top 10 holdings
1. Freddie Mac
2. Johnson & Johnson
3. General Electric
4. SBC Communications
5. Tyco International
6. Tidewater
7. Exxon Mobil
8. FleetBoston Financial
9. Microsoft
10. Coastal
Industry Composition (based on total net assets)
Banking, Finance & Insurance 20.85%
Computers & Technology 19.81%
Healthcare & Pharmaceuticals 12.59%
Telecommunications 10.00%
Energy 9.15%
Electronics & Electrical Equipment 4.74%
Consumer Products 4.42%
Retail 2.90%
Transportation & Shipping 2.73%
Food, Beverage & Tobacco 2.55%
Utilities 2.21%
Leisure, Lodging & Entertainment 1.47%
Chemicals 1.20%
Aerospace & Defense 1.09%
Net Cash & Other Assets 4.29%
2000 Annual Report o Delaware Pooled Trust 11
<PAGE>
Select Equity:
Volatility Keeps A Lid On Returns
The Select Equity Portfolio returned 1.63% for the fiscal year ended October 31,
2000. The Portfolio underperformed its benchmark--the Russell 3000 Index--which
posted a 9.63% return for the same period.
The equity markets experienced periods of extreme volatility from mid-March
through October 2000, due in part to an attempt by the Federal Reserve to slow
the economy through three consecutive interest-rate hikes. In the first half of
the year, the Portfolio was overweighted in technology issues. As rates rose,
technology companies had a difficult time maintaining the high rates of growth
that had propelled their stock prices in the previous 18 months. As fundamentals
deteriorated, we eliminated several positions in technology. These included
Computer Associates and Nextel. We also eliminated Circuit City, a consumer
electronics retailer, when fundamental analysis showed weakness; we sold the
stock at a profit just before its decline. Beverage stocks were also major
contributors to positive performance as Anheuser Busch, maker of Budweiser, did
very well.
Select Equity's investment strategy relies on individual stock selection, with
very little consideration given to macro-economic and other criteria. The
Portfolio seeks companies whose shares are undervalued relative to the market
and to others in its market sector. Stock selection is based upon a proprietary
screening process using a sophisticated quantitative model that scores each
stock in our universe on valuation expectations and risk characteristics. We
then perform fundamental research to determine which of the attractive
quantitative candidates are the most appropriate for inclusion in the Portfolio.
New companies in the Portfolio are Ingersoll Rand and General Electric, which we
believe should benefit from its acquisition of Honeywell. We sold Coastal, an
energy company, and bought Williams Companies, a diversified energy company with
a majority ownership in Williams Communications Group, which provides
telecommunications over fiberoptic cables. Williams is in the process of
separating its energy business from telecommunications. It has underperformed
other diversified energy companies and we believe it has the potential to be a
strong performer for us.
Average Annual Total Return*
Periods ending October 31, 2000
----------------------------------
One Year Since Inception
1.63% 2.01%
----------------------------------
Growth of $10,000*
Select Equity Portfolio Russell 3000 Index ($000)
29-Jun-99 $10,000.00 10
30-Sep-99 $9,388.23 9.7
31-Dec-99 $10,435.29 9.9
31-Mar-00 $11,505.88 10.4
30-Jun-00 $10,023.52 11
30-Sep-00 $9,764.70 10.8
31-Oct-00 $10,270.58 11
* 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 3000 Index is an unmanaged index and a theoretical
measure of stock-market performance rather than an actual available investment.
The returns for each index have been calculated from the start of the month
closest to the corresponding Portfolio's inception date.
An expense limitation was in effect for The Select Equity Portfolio during the
periods shown. Performance would have been lower if the expense limitation was
not in effect.
12 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
As the economy slows, we believe more investors will be scrutinizing
fundamentals, looking at valuations and earnings potential. As always, we will
rely on individual stock selection, seeking attractively valued issues whose
fundamentals are intact.
Portfolio Managers
Timothy G. Connors
Mr. Connors earned a bachelor's degree at the University of Virginia and an MBA
degree in Finance at Tulane University. He joined Delaware in 1997 after serving
as a Principal at Miller, Anderson & Sherrerd, where he managed equity accounts,
conducted sector analysis, and directed research. He previously held positions
at CoreStates Investment Advisers and Fauquier National Bank. He is a Chartered
Financial Analyst and a member of the Association for Investment Management and
Research.
J. Paul Dokas
Mr. Dokas is responsible for producing quantitative research used to develop new
global investment services, refine existing services, and make asset-allocation
decisions. He joined Delaware in 1997. He previously was Director of Trust
Investment Management at Bell Atlantic Corporation. He earned a bachelor's
degree at Loyola College in Baltimore and an MBA degree at the University of
Maryland. He is a Chartered Financial Analyst.
<PAGE>
Portfolio Profile
October 31, 2000
Total net assets ....................................... $2.1 million
Inception date ........................................ June 29, 1999
Asset composition (based on total net assets)
Common stocks ............................................... 100.48%
Cash equivalents and other net assets ....................... (0.48)%
Number of holdings .............................................. 26
Top 10 holdings
1. Merck & Company
2. Microsoft
3. Verizon Communications
4. Symbol Technologies
5. Intel
6. Freddie Mac
7. BellSouth
8. Chase Manhattan
9. Alcoa
10. Sprint PCS
Industry Composition (based on total net assets)
Banking, Finance & Insurance 19.11%
Telecommunications 15.70%
Computers & Technology 12.27%
Healthcare & Pharmaceuticals 8.22%
Electronics & Electrical Equipment 7.92%
Energy 7.33%
Cable, Media & Publishing 7.10%
Metals & Mining 3.90%
Industrial Machinery 3.85%
Leisure, Lodging & Entertainment 3.83%
Food, Beverage & Tobacco 3.78%
Consumer Products 3.76%
Utilities 3.71%
Net cash & other assets -0.48%
2000 Annual Report o Delaware Pooled Trust 13
<PAGE>
All-Cap Growth Equity:
Outperformance In A Poor Market For Growth Stocks
The All-Cap Growth Equity Portfolio commenced trading on March 31, 2000. Since
its inception in March, the Portfolio has performed well relative to its
benchmark. It returned 3.18% for the seven-month period ended October 31, 2000,
outperforming the Russell 3000 Growth Index by more than 1500 basis points.
Technology was the largest sector weighting in the Portfolio, and the main
contributor to performance. Good performers include Extreme Networks, which
provides switching solutions of local area telephone networks (LANS), and Net
IQ, an applications management software firm. Both posted strong sales growth
during the past year. The Portfolio also did well in the financial services and
retail sectors. Zions Bancorp, a holding company for Southwest regional banks,
and Walgreen, a national drugstore chain, were the best performers in these
sectors.
Poor performers were SI Technologies, a provider of applications that enable
corporations to offer secure networks and security services; Pinnacle Holdings,
a real estate investment trust (REIT); and Radio One, a radio company
experiencing a slowdown in advertising revenues. All were sold.
Looking ahead, we believe the market will continue to emphasize earnings growth,
although as the economy slows earnings will likely not grow quite as rapidly as
in the past three years. Stock selection remains key to positive performance
results. We will continue to select stocks of companies with continued growth
and strong earnings potential covering the full range of market capitalization,
eliminating those that do not meet our expectations, and we remain confident
about the outlook for the Portfolio.
Total Return*
For the period March 31 to October 31, 2000
-----------------------------------------------
3.18%
-----------------------------------------------
Growth of $10,000*
All-Cap Growth Equity Portfolio Russell 3000 Growth Index ($000)
31-Mar-00 $10,000.00 10
30-Apr-00 $9,976.47 9.5
31-May-00 $9,105.88 9
30-Jun-00 $10,411.76 9.7
31-Jul-00 $10,270.58 9.3
31-Aug-00 $11,576.46 10.1
30-Sep-00 $11,352.94 9.2
31-Oct-00 $10,317.64 8.7
* 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 3000 Growth Index is an unmanaged index and a theoretical
measure of stock-market performance rather than an actual available investment.
The returns for each index have been calculated from the start of the month
closest to the corresponding Portfolio's inception date.
An expense limitation was in effect for The All-Cap Growth Equity Portfolio
during the periods shown. Performance would have been lower if the expense
limitation was not in effect.
14 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
Portfolio Manager
Gerald S. Frey
Mr. Frey received a bachelor's degree in Economics from Bloomsburg University.
Before joining Delaware in 1996, he served as a Senior Director at Morgan
Grenfell Capital Management, where he managed technology related stocks.
Previously, he was a Vice President at Chase Investors Management Corporation.
Portfolio Profile
October 31, 2000
Total net assets ...................................... $13.1 million
Inception date ....................................... March 31, 2000
Asset composition (based on total net assets)
Common stocks ............................................. 95.84%
Cash equivalents and other net assets ...................... 4.16%
Number of holdings ............................................... 58
Top 10 holdings
1. i2 Technologies
2. America Online
3. Extreme Networks
4. Network Appliance
5. Genentech
6. Veritas Software
7. Brinker International
8. Applied Micro Circuits
9. Kohl's
10. JDS Uniphase
Industry Composition (based on total net assets)
Technology/Software 22.30%
Banking, Finance & Insurance 13.54%
Telecommunications 12.16%
Retail 11.55%
Electronics & Electrical Equipment 10.03%
Healthcare & Pharmaceuticals 7.13%
Utilities 3.91%
Consumer Services 3.68%
Leisure, Lodging & Entertainment 3.68%
Cable, Media & Publishing 2.83%
Computers & Technology 2.73%
Transportation & Shipping 1.07%
Energy 0.65%
Business Services 0.58%
Net Cash & Other Assets 4.16%
2000 Annual Report o Delaware Pooled Trust 15
<PAGE>
Mid-Cap Growth Equity:
Significant Outperformance Amid Extreme Volatility
Mid-capitalization growth stocks were the best performing segment of the overall
market for the 12 months ended October 31,2000, as investors turned their focus
away from the large-capitalization issues that led the market during much of
1999. The Mid-Cap Growth Equity Portfolio returned 53.86% during its fiscal
year, as compared with the Russell Midcap Growth Index's 38.67% return for the
same period. In this environment, the Portfolio performed well on both an
absolute and a relative basis, posting a return more than 1500 basis points
better than its benchmark. (Due to recent market volatility, current performance
may differ substantially. Visit www.delawareinvestments.com/institutional or
call 1-800-231-8002 for the most recent calendar quarter returns.)
The past fiscal year was characterized by extreme volatility. Growth-oriented
indices posted strong returns in the last quarter of 1999 and this performance
continued until mid-March of the year 2000. As the Federal Reserve implemented a
series of interest rate hikes, growth stocks experienced substantial declines
during April and May. The volatility continued into the final months of the
fiscal year, with strong increases in June and August mixed in with negative
returns in July, September and October.
Technology was the Portfolio's largest sector weighting over the reporting
period, and contained many of the largest contributors to the excellent returns.
Network Appliance, Ciena Corporation and PMC-Sierra were the three best
performing stocks during the year, with each delivering a return exceeding 300%.
Network Appliance manufactures high performance network data storage devices,
Ciena manufactures systems for optical telecommunications networks, and
PMC-Sierra develops high performance semiconductor networking solutions.
Business and financial services companies--another significant source of strong
performance--also did very well. Fiserv, which provides information management
products and services to financial institutions, was the prime contributor to
this sector.
Average Annual Total Return*
Periods ending October 31, 2000
---------------------------------------------------
One Year Five Years Since Inception
53.86% 25.35% 17.88%
---------------------------------------------------
Growth of $10,000*
Mid-Cap Growth Equity Portfolio Russell Midcap Growth Index ($000)
27-Feb-92 $10,000.00 10
30-Jun-92 $8,400.00 9.6
31-Dec-92 $10,137.00 9.9
30-Jun-93 $10,147.02 10.8
30-Dec-93 $11,379.09 11.6
30-Jun-94 $10,418.05 12.2
28-Dec-94 $10,814.79 11.9
30-Jun-95 $12,437.53 13
27-Dec-95 $14,031.45 15.4
28-Jun-96 $16,256.22 16.7
10-Dec-96 $16,333.28 17.9
28-Jun-97 $16,936.76 17.7
16-Dec-97 $17,697.69 23.2
30-Jun-98 $20,626.96 25.3
18-Dec-98 $20,358.46 21
30-Jun-99 $25,006.51 26
17-Dec-99 $33,936.96 29.4
30-Jun-00 $39,291.90 48.7
31-Oct-00 $41,668.16 43.1
* 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 Midcap Growth Index is an unmanaged index and a
theoretical measure of stock-market performance rather than an actual available
investment. The returns for each index have been calculated from the start of
the month closest to the corresponding Portfolio's inception date.
An expense limitation was in effect for The Mid-Cap Growth Equity Portfolio
during the periods shown. Performance would have been lower if the expense
limitation was not in effect.
16 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
The Portfolio was also overweighted relative to the Russell Midcap Growth Index
in consumer stocks. Kohl's, a growing department store chain, and Bed Bath &
Beyond, a nationwide chain of superstores selling predominantly better quality
household goods, were the two best performing retail stocks.
Poor performers were SI Technologies and Checkfree Corporation. Each failed to
deliver expected sales and earnings growth during the year, and were sold.
Looking forward, we believe the market will continue to focus on earnings
growth, rewarding those companies that exhibit continued growth and penalizing
those that fall short of expectations. In this environment, we will continue to
select shares of companies that have strong earnings outlooks and are the
recognized leaders in their respective industries.
Portfolio Managers
Gerald S. Frey
Mr. Frey received a bachelor's degree in Economics from Bloomsburg University.
Before joining Delaware in 1996, he served as a Senior Director at Morgan
Grenfell Capital Management, where he managed technology related stocks.
Previously, he was a Vice President at Chase Investors Management Corporation.
John A. Heffern
Mr. Heffern earned bachelors and MBA degrees at the University of North Carolina
at Chapel Hill. He joined Delaware in 1997. He previously was a Senior Vice
President, Equity Research at NatWest Securities Corporation's Specialty
Financial Services unit. Before that, he was a Principal and Senior Regional
Bank Analyst at Alex Brown & Sons.
<PAGE>
Portfolio Profile
October 31, 2000
Total net assets ....................................... $6.5 million
Inception date .................................... February 27, 1992
Asset composition (based on total net assets)
Common stocks ............................................. 96.06%
Cash equivalents and other net assets ...................... 3.94%
Number of holdings ............................................... 59
Top 10 holdings
1. Veritas Software
2. Network Appliance
3. Extreme Networks
4. PerkinElmer
5. Kohl's
6. PMC-Sierra
7. JDS Uniphase
8. Brinker International
9. i2 Technologies
10. Bed Bath & Beyond
Industry Composition (based on total net assets)
Computers & Technology 20.98%
Electronics & Electrical Equipment 15.57%
Telecommunications 13.39%
Banking, Finance & Insurance 11.29%
Retail 10.98%
Healthcare & Pharmaceuticals 5.96%
Leisure, Lodging & Entertainment 5.83%
Business Services 5.81%
Cable, Media & Publishing 3.04%
Consumer Products 2.00%
Utilities 1.21%
Net Cash & Other Net Assets 3.94%
2000 Annual Report o Delaware Pooled Trust 17
<PAGE>
Small-Cap Value Equity:
Recent Gains In Second Half Buoy Portfolio
The six months ended October 31, 2000 represent a welcome turnaround for both
the Small-Cap Value Equity Portfolio and for value stocks in general from the
last three years when investors primarily focused on growth stocks. However, for
its fiscal year the Portfolio lagged its benchmark; it returned 10.72%, trailing
the Russell 2000 Value Index by more than 600 basis points. In the first six
months, the Portfolio performed poorly as value was out of favor and earnings
appeared to matter little in investors' minds. Performance improved
substantially in the last six months of fiscal 2000 as the market began to
recognize value. In our view, the third quarter of 2000 signified the first full
calendar quarter in which small-cap value stocks in general saw a marked
improvement in performance versus the past couple years. The third calendar
quarter of 2000 saw the Portfolio's 9.7% return best the 7.3% return for the
Russell 2000 Value Index. It significantly outperformed the 1.1% return for the
Russell 2000, the most popular index of small capitalization equities.
Small-cap value investing fell on hard times beginning in 1998, when Asian
markets faltered and investors began to shun stocks of companies without solid,
visible earnings growth. As Internet stocks and other concept stocks took off,
value stocks of all sizes--particularly those of small companies--were largely
ignored.
But the tide appears to have finally shifted. Beginning in March 2000, small-cap
value stocks began to attract investor attention. In fact, since June, investors
that we feel have become disillusioned with technology and growth investing in
general have been net buyers of small-cap value funds, while continuing to
divest themselves of mid- and large-cap value holdings. Many are seeking to
provide balance to the growth in their portfolios by diversifying into value
shares.
Average Annual Total Return*
Periods ending October 31, 2000
-----------------------------------
One Year Since Inception
10.72% 7.73%
Growth of $10,000*
Small-Cap Value Equity Portfolio Russell 2000 Value Index ($000)
29-Mar-99 $10,000.00 10
30-Jun-99 $11,388.23 10.9
30-Sep-99 $10,294.11 11.4
17-Dec-99 $9,888.24 10.5
31-Mar-00 $10,510.83 10.6
30-Jun-00 $10,425.38 11.4
30-Sep-00 $11,438.61 11.9
31-Oct-00 $11,267.71 12.4
* 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 Value Index is an unmanaged index and a theoretical
measure of stock-market performance rather than an actual available investment.
The returns for each index have been calculated from the start of the month
closest to the corresponding Portfolio's inception date.
An expense limitation was in effect for The Small-Cap Value Equity Portfolio
during the periods shown. Performance would have been lower if the expense
limitation was not in effect.
18 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
When growth was king, many investors invested heavily in technology companies,
cutting their holdings in traditional growth sectors such as healthcare and
consumer goods. As prices fell on those stocks, value investors snapped them up,
and these are now among the sectors working well in this year's overall poor
market. Once again, traditional investment rules apply: companies with good
financials selling at low premiums often offer good long-term investment
opportunities. As a value-oriented Portfolio, we did not get the benefit of
investing in bio-technology and Internet companies (most of which had no
earnings prospects), which drove the market until March.
Another reason for the move to value is that these shares traditionally hold up
better in declining markets; in the recent correction, value funds fell
one-third as much as growth funds.
Overall stock selection and sector weightings were key to the Portfolio's
positive performance. We continued to emphasize the financial services sector,
with significant contributions coming from our regional bank and insurance
holdings. Our second largest sector is energy, which has also done well.
However, we have recently begun to reduce our energy weighting, and expect to
continue this process as the price of oil remains at unsustainable levels. At
the same time, we increased our technology weighting to be more in line with the
Russell 2000 Value Index. Healthcare remains an important sector.
Portfolio Manager
Christopher S. Beck
Mr. Beck earned a bachelor's degree at the University of Delaware and an MBA
degree at Lehigh University. He joined Delaware in 1997. Mr. Beck previously
served as a vice president at Pitcairn Trust Company, where he managed
small-capitalization stocks and analyzed equity sectors. Before that he was
chief investment officer of the University of Delaware and held management
positions at Cypress Capital Management and Wilmington Trust Company. He is a
Chartered Financial Analyst.
<PAGE>
Portfolio Profile
October 31, 2000
Total net assets ....................................... $2.3 million
Inception date ....................................... March 29, 1999
Asset composition (based on total net assets)
Common stocks ............................................. 95.59%
Cash equivalents and other net assets ...................... 4.41%
Number of holdings ............................................... 81
Top 10 holdings
1. Everest Re Group
2. Suiza Foods
3. Jacobs Engineering Group
4. Federal Signal
5. PMI Group
6. D.R. Horton
7. Helmerich & Payne
8. Varian Medical Systems
9. Cullen/Frost Bankers
10. OM Group
Industry Composition (based on total net assets)
Banking, Finance & Insurance 20.58%
Energy 9.33%
Real Estate 7.71%
Healthcare & Pharmaceuticals 7.61%
Transportation & Shipping 4.82%
Computers & Technology 4.47%
Buildings & Materials 4.25%
Food, Beverage & Tobacco 4.20%
Chemicals 4.19%
Electronics & Electrical Equipment 4.11%
Retail 3.99%
Textiles, Apparel & Furniture 3.00%
Miscellaneous 2.91%
Utilities 2.82%
Telecommunications 2.75%
Automobiles & Automotive Parts 2.62%
Engineering & Construction 2.39%
Industrial Machinery 1.44%
Packaging & Containers 1.07%
Cable, Media & Publishing 1.02%
Metals & Mining 0.31%
Net Cash & Other Assets 4.41%
2000 Annual Report o Delaware Pooled Trust 19
<PAGE>
Small-Cap Growth Equity:
Exceptional Outperformance Driven By Tech, Services
The Small-Cap Growth Equity Portfolio continued to perform well in the second
half of its fiscal year, finishing the year with exceptional returns and
significantly outperforming its benchmark. The 47.57% return for the Portfolio
was almost three times that of the Russell 2000 Growth Index. (Due to recent
market volatility, current performance may differ substantially. Visit
www.delawareinvestments.com/institutional or call 1-800-231-8002 for the most
recent calendar quarter returns.)
The past fiscal year was characterized by extreme volatility. Growth-oriented
indices posted strong returns in the last quarter of 1999 and this performance
continued until mid-March of the year 2000. As the Federal Reserve implemented a
series of interest rate hikes, growth stocks experienced substantial declines
during April and May. The volatility continued into the final months of the
fiscal year, with strong increases in June and August mixed in with negative
returns in July, September and October.
Technology continued to be our largest sector weighting, containing many of the
largest contributors to the year's performance. Network Appliance, which designs
and manufactures high performance network data storage devices, was our best
performing stock, delivering a return that exceeded 300%. Jack Henry &
Associates, a developer of data processing systems for financial institutions,
also did well. Semiconductor and semiconductor equipment companies also
performed well during the period. PMC-Sierra Corp., which manufactures systems
for optical telecommunications networks was a prime performer.
Business and financial services companies were another significant source of
strong performance. Other sectors contributing to the Portfolio's solid
performance were consumer products and healthcare. Strong performers in these
sectors include The Cheesecake Factory, which runs upscale restaurants and
distributes baked goods, and Trimeris, whose viral fusion inhibitors teach the
body to inhibit virus growth.
Average Annual Total Return*
Periods ending October 31, 2000
--------------------------------------------------------------------------------
One Year Since Inception
47.57% 52.82%
--------------------------------------------------------------------------------
Growth of $10,000*
Small-Cap Growth Equity Portfolio Russell 2000 Growth Index ($000)
15-Sep-98 $10,000.00 10
30-Sep-98 $10,270.58 10.5
18-Dec-98 $12,476.47 12.4
31-Mar-99 $13,443.45 12.9
30-Jun-99 $15,459.97 13.2
30-Sep-99 $15,919.88 13.5
17-Dec-99 $19,481.20 13.6
31-Mar-00 $26,048.77 17.5
30-Jun-00 $24,915.08 17.4
30-Sep-00 $26,491.82 16.4
31-Oct-00 $24,693.56 15.8
* 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.
The returns for each index have been calculated from the start of the month
closest to the corresponding Portfolio's inception date.
An expense limitation was in effect for The Small-Cap Growth Equity Portfolio
during the periods shown. Performance would have been lower if the expense
limitation was not in effect.
20 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
Radio One, the largest radio broadcasting company in the U.S., and Register.com,
a provider of internet domain registration and other web services, were two of
the poorest performers during the year. We exited from both positions during the
year.
As the overall economy appears to be entering into a period of declining growth,
the market will increase its emphasis on earnings growth; rewarding those
companies that exhibit continued growth and penalizing those companies that fall
short of expectations. In this investment environment, we will continue our
focus on selecting companies that have strong earnings outlooks and are the
recognized leaders of their respective industries.
Portfolio Managers
Gerald S. Frey
Mr. Frey received a bachelor's degree in Economics from Bloomsburg University.
Before joining Delaware in 1996, he served as a Senior Director at Morgan
Grenfell Capital Management, where he managed technology related stocks.
Previously, he was a Vice President at Chase Investors Management Corporation.
Marshall T. Bassett
Mr. Bassett joined Delaware in 1997. In his most recent position, he served as a
Vice President in Morgan Stanley Asset Management's Emerging Growth Group, where
he analyzed small growth companies. Before that, he was a Trust Officer at
Sovran Bank and Trust Company. He holds bachelor's and MBA degrees from Duke
University.
Portfolio Profile
October 31, 2000
Total net assets..................................................$37.6 million
Inception date...............................................September 15, 1998
Asset composition (based on total net assets)
Common stocks.........................................................96.20%
Cash equivalents and other net assets..................................3.80%
Number of holdings...........................................................82
Top 10 holdings
1. Network Appliance
2. VERITAS Software
3. Applied Micro Circuits
4. PMC-Sierra
5. Micrel
6. Henry (Jack) & Associates
7. Dollar Tree Stores
8. i2 Technologies
9. XO Communications
10. NetIQ
Industry Composition (based on total net assets)
Technology/Software 21.04%
Telecommunications 17.17%
Computers & Technology 12.59%
Retail 10.42%
Healthcare & Pharmaceuticals 9.83%
Leisure, Lodging & Entertainment 7.74%
Banking, Finance & Insurance 6.26%
Business Services 5.72%
Basic Industry/Capital Goods 2.46%
Cable, Media & Publishing 1.42%
Consumer Services 0.63%
Food, Beverage & Tobacco 0.49%
Buildings & Materials 0.43%
Net Cash & Other Assets 3.80%
2000 Annual Report o Delaware Pooled Trust 21
<PAGE>
Real Estate Investment Trust II:
Strong Outperformance In A Rebounding Market
Over the past year, REITs continued their strong recovery from a difficult two
years, as real estate stocks either met or exceeded expectations. For the fiscal
year ended October 31, 2000, the REIT Portfolio II returned an impressive
25.78%, 750 basis points higher than the NAREIT Equity REIT Index. Heavy
weighting in the office/industrial, apartment and hotel sectors contributed to
the strong performance.
A vibrant economy, strong job growth and limited supply have resulted in
historically low office vacancy rates in core markets such as New York, San
Francisco, Boston and Washington DC. Although space is not as tight in the
suburbs, many communities have imposed strict controls on office development.
The availability of capital has tightened, lenders are using higher credit
standards, and space for building new supply is extremely limited--particularly
in urban centers. Although demand is slowing somewhat due to the slower economy
and dot.com failures, it remains strong; we now have a "red hot" market versus a
"white hot" market of several months ago. The Portfolio's largest holding is
Equity Office Properties Trust, the largest office owner in the country and a
major player in ten core markets. Spieker Properties, with a large exposure in
the San Francisco Bay area and Silicon Valley, and SL Green Realty, a Manhattan
office manager, have also done well. Both are niche companies with earnings up
more than 50% vs. a year ago. Although not as tight as office supply, the
industrial space market is less subject to the economic swings that affect other
sectors. Industrial leases have longer time horizons, space is more of a
necessity, and industrial space is more efficient and less expensive to build.
Average Annual Total Return*
Periods ending October 31, 2000
--------------------------------------------------------------------------------
One Year Since Inception
25.78% 2.62%
--------------------------------------------------------------------------------
Growth of $10,000*
Real Estate Investment Trust Portfolio II NAREIT Equity REIT Index ($000)
04-Nov-97 $10,000.00 10
16-Dec-97 $10,012.20 10.2
31-Mar-98 $10,530.08 10.4
30-Jun-98 $9,999.87 10.1
30-Sep-98 $9,062.77 8.4
18-Dec-98 $8,896.35 8.8
31-Mar-99 $8,525.12 8.4
30-Jun-99 $9,625.77 9.2
30-Sep-99 $8,857.27 8.6
17-Dec-99 $8,400.13 8
31-Mar-00 $9,144.36 8.4
30-Jun-00 $10,384.74 9
30-Sep-00 $11,156.53 10.1
31-Oct-00 $10,805.09 9.6
* 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. The returns for each index have been
calculated from the start of the month closest to the corresponding Portfolio's
inception date.
An expense limitation was in effect for The Real Estate Investment Trust
Portfolio II during the periods shown. Performance would have been lower if the
expense limitation was not in effect.
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.
22 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
Multi-family dwellings constitute another profitable sector. Demand is high,
supply is low, and rents have risen dramatically. Holdings that have performed
well include Essex Property Trust, a west coast apartment owner and AvalonBay
Communities, a large apartment owner in the west, northeast and mid-Atlantic
states.
Although hotels offer higher risk than office or industrial space; there are no
contractual agreements, and business can turn very quickly. New hotels continue
to rise as margins are high, so there is no supply shortage. However, value
remains as the market discounted these concerns a year ago. The star performer
is Starwood Hotels & Resorts Worldwide, a global hotel chain with both business
and pleasure destinations.
We have done well with our regional mall holdings although the sector has yet to
meet our expectations. General Growth Properties has performed well but is still
below expectations. We believe there is strong evidence that the market will
turn, and if we are correct, the Portfolio is well positioned for this.
Going forward, we are very confident of the outlook for real estate.
Fundamentals are in place, and although the economy is slowing, we see only a
marginal effect on this market in the near term because of strong pent-up demand
and the contractual nature of the business. Extreme price volatility in the
equity markets has caused many investors to turn their attention to REITs, and
we are cautiously optimistic about continued good returns for the foreseeable
future.
Portfolio Managers
Damon J. Andres
Mr. Andres earned a BS in Business Administration with an emphasis in Finance
and Accounting from the University of Richmond. Prior to joining Delaware in
1994, Mr. Andres performed investment consulting services as a Consulting
Associate with Cambridge Associates, Inc. in Arlington, Virginia. Mr. Andres is
a CFA level III Candidate.
Thomas J. Trotman
Mr. Trotman earned a bachelor's degree in Accounting from Muhlenberg College and
an MBA from Widener University. Before joining Delaware in 1995, he was Vice
President and Director of Credit Research at Independence Capital Management.
Before that, he held credit-related positions at Marine Midland Bank, U.S. Steel
Corporation, and Amerada Hess. Mr. Trotman is a Chartered Financial Analyst.
Portfolio Profile
October 31, 2000
Total net assets...................................................$2.2 million
Inception date.................................................November 3, 1997
Asset composition (based on total net assets)
Common stocks.........................................................98.76%
Cash equivalents and other net assets..................................1.24%
Number of holdings...........................................................32
Top 10 holdings
1. Equity Office Properties Trust
2. AvalonBay Communities
3. Duke-Weeks Realty
4. Grove Property Trust
5. AMB Property
6. Apartment Investment & Management Class A
7. Prentiss Properties Trust
8. SL Green Realty
9. Equity Residential Properties Trust
10. Chateau Communities
Industry Composition (based on total net assets)
Office/Industrial REITs 44.54%
Multi-Family REITs 22.19%
Other/Operating Companies 8.13%
Retail Strip Center REITs 6.65%
Manufactured Housing REITs 6.63%
Mall REITs 6.61%
Self-Storage REITs 2.68%
Hotel REITs 1.33%
Net Cash & Other Assets 1.24%
2000 Annual Report o Delaware Pooled Trust 23
<PAGE>
Intermediate Fixed Income:
Returns Buoyed By Renewed Investor Demand For Higher Quality
The Intermediate Fixed Income Portfolio outperformed its benchmark for its
fiscal year ended October 31, 2000. The Portfolio's 7.01% return was enhanced by
its weighting in mortgage-backed, asset-backed and agency bonds. After three
consecutive interest-rate hikes by the Federal Reserve, the economy began to
slow and many anxious investors turned to higher quality debt, thus leaving
behind lower quality corporates, including investment grade A and BBB rated
securities. However, a move to higher quality bonds contributed to the
Portfolio's positive performance.
These benefits were modestly offset in the summer by a lower-quality corporate
bond exposure as well as a focus on five- to 10-year maturities at a time when
long-term securities performed very well relative to other sectors of the fixed
income market, including short-term Treasury bills and notes. In the Spring, the
government began to buy back its long-term bonds, and continuation of the
long-term Treasury bond repurchases contributed to a significant shift in the
Treasury yield curve, with long-term rates falling faster than short-term rates.
In the early Spring, we took an overweighted position in government agencies
after Congress threatened to rescind their government backing and their prices
declined. We took the position that this was unlikely to succeed because these
agencies support homeowners, and we increased our holdings in Ginnie Mae (GNMA)
and Fannie Mae (FNMA). A compromise was recently worked out, government backing
remains and prices have bounced back to the benefit of the Portfolio's
performance.
Average Annual Total Return*
Periods ending October 31, 2000
--------------------------------------------------------------------------------
One Year Since Inception
7.01% 5.69%
--------------------------------------------------------------------------------
Growth of $10,000*
Lehman Brothers Government/Corporate
Intermediate Fixed Income Portfolio Intermediate Bond Index ($000)
12-Mar-96 $10,000.00 10
28-Jun-96 $10,041.33 9.9
30-Sep-96 $10,230.12 10
31-Dec-96 $10,473.09 10.2
31-Mar-97 $10,470.67 10.4
30-Jun-97 $10,762.34 10.4
30-Sep-97 $11,046.26 10.7
31-Dec-97 $11,228.96 11
31-Mar-98 $11,406.73 11.3
30-Jun-98 $11,609.01 11.4
30-Sep-98 $11,976.41 11.7
18-Dec-98 $11,998.40 12.2
31-Mar-99 $12,035.77 12.2
30-Jun-99 $11,950.95 12.2
30-Sep-99 $12,050.20 12.1
31-Dec-99 $12,075.97 12.2
31-Mar-00 $12,273.75 12.3
30-Jun-00 $12,476.93 12.4
30-Sep-00 $12,871.30 12.7
31-Oct-00 $12,929.17 13.1
* 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. The returns for each index have been calculated
from the start of the month closest to the corresponding Portfolio's inception
date.
An expense limitation was in effect for The Intermediate Fixed Income Portfolio
during the periods shown. Performance would have been lower if the expense
limitation was not in effect.
24 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
The world financial markets experienced somewhat less volatility during the
summer months as the Federal Reserve maintained a steady federal funds rate of
6.5%. Signs of slowing economic growth plus moderate inflation numbers provided
a lift for fixed income investors. The high price of oil has received attention
for its potential impact on slowing economic growth rather than its inflationary
shock. Most non-government sectors performed in line with Treasuries, although
lower quality bonds lagged. Over the last several months we have moved the
Portfolio toward a higher quality bias. With world economies slowing, we will
maintain our emphasis on more liquid, higher quality securities. As a result, we
believe the Portfolio is well positioned to ride out any further bond market and
economic volatility while having the liquidity to take advantage of market
extremes as they develop.
Portfolio Manager
Roger A. Early
Mr. Early received an undergraduate degree from the University of Pennsylvania's
Wharton School and an MBA in Finance from the University of Pittsburgh. He
served as Portfolio Manager for Federated Investment Counseling's fixed income
group. He previously held management positions at Rockwell International
Corporation, Touche Ross & Co., and Pittsburgh National Bank. A Certified Public
Accountant and Chartered Financial Analyst, Mr. Early joined Delaware in 1994.
Portfolio Profile
October 31, 2000
Total net assets...................................................$8.0 million
Inception date...................................................March 12, 1996
Number of holdings...........................................................24
Top 10 holdings
1. Fannie Mae 7.00% 7/15/05
2. U.S. Treasury Notes 6.50% 2/15/10
3. Ginnie Mae Series 98-9B 6.85% 12/20/25
4. Fannie Mae 7.00% 10/1/29
5. PECO Energy Transition Series 99-A A4 5.80% 3/1/07
6. Worldcom 7.55% 4/1/04
7. Fannie Mae Whole Loan Series 98-W3 A2 6.50% 7/25/28
8. Morgan Stanley Dean Witter 7.75% 6/15/05
9. Fannie Mae 7.00% 8/1/28
10. Cox Communications 6.15% 8/1/03
Asset Composition (based on total net assets)
Corporate Bonds 24.35%
Agency Obligations 22.70%
Agency Mortgage-Backed Securities 16.52%
U.S. Treasury Obligations 11.91%
Agency Collateralized Mortgage Obligations 11.30%
Asset-Backed Securities 10.38%
Commerical Mortgage-Backed Securities 4.09%
Net Cash & Other Assets -1.25%
2000 Annual Report o Delaware Pooled Trust 25
<PAGE>
Aggregate Fixed Income:
Gains in "Spread Sectors" Tempered By Lower Quality Corporates
The Aggregate Fixed Income Portfolio had positive returns for the fiscal year
ended October 31, 2000, although it lagged the Lehman Brothers Aggregate Bond
Index. The Portfolio's 5.88% return was enhanced by its weightings in some
"spread sectors" (mortgage-backed, asset-backed and government agency bonds).
However, this benefit was offset by its lower quality corporate bond exposure,
as well as its focus on five- to 10-year bond maturities.
Over the past few months long-term securities performed very well relative to
other sectors of the fixed income market, including short-term Treasuries,
precipitated by the government's buyback of its long-term debt. Continuation of
the repurchases contributed to a significant shift in the Treasury yield curve,
with longer-term rates falling faster than short-term rates. The Portfolio
missed this opportunity as we held securities with short and intermediate
maturities. Over the past few years, the corporate bond market has behaved much
like the stock market. Liquidity on an individual basis is volatile. Corporate
bonds are often more closely tied to the behavior of the stock rather than
specific issue credit concerns. Although we reduced exposure to corporates,
performance was still adversely impacted.
The Portfolio benefited from its position in government agency issues. An
attempt by Congress to rescind the government guarantee behind these agencies
caused their prices to decline. Because these agencies support homeowners, we
were skeptical that this would pass, particularly in an election year.
Therefore, we increased our holdings in Ginnie Mae (GNMA) and Fannie Mae (FNMA).
Now that a compromise has been worked out, prices have recovered to our
advantage.
Average Annual Total Return*
Periods ending October 31, 2000
--------------------------------------------------------------------------------
One Year Since Inception
5.88% 4.29%
--------------------------------------------------------------------------------
Growth of $10,000*
Aggregate Fixed Income Portfolio Lehman Brothers Aggregate Bond Index ($000)
29-Dec-97 $10,000.00 10
31-Mar-98 $10,164.70 10.1
30-Jun-98 $10,364.70 10.2
30-Sep-98 $10,799.99 10.6
18-Dec-98 $10,894.15 10.8
31-Mar-99 $10,725.25 10.9
30-Jun-99 $10,544.29 10.8
30-Sep-99 $10,616.67 10.7
17-Dec-99 $10,619.12 10.8
31-Mar-00 $10,796.96 10.7
30-Jun-00 $10,936.68 11
30-Sep-00 $11,241.54 11.3
31-Oct-00 $11,266.94 11.6
* 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. The returns for each index have been calculated from the start of
the month closest to the corresponding Portfolio's inception date.
An expense limitation was in effect for The Aggregate Fixed Income Portfolio
during the periods shown. Performance would have been lower if the expense
limitation was not in effect.
26 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
The world financial markets experienced somewhat less volatility during the
summer months as the Federal Reserve ceased raising rates. Signs of slowing
economic growth and moderate non-oil inflation statistics combined to provide a
lift for fixed income investors. The high price of oil has received attention
for its potential impact on slowing economic growth, rather than its
inflationary shock. Most non-government sectors performed in line with
Treasuries, although lower quality bonds lagged. Over the last several months,
we have moved the Portfolio toward a higher quality bias. With the U.S. economy
slowing, we will maintain our emphasis on more liquid, higher quality
securities. As a result, we believe the Portfolio is well positioned to ride out
any further bond market and economic volatility while having the liquidity to
take advantage of market extremes as they develop.
Portfolio Manager
Roger A. Early
Mr. Early received an undergraduate degree from the University of Pennsylvania's
Wharton School and an MBA in Finance from the University of Pittsburgh. He
served as Portfolio Manager for Federated Investment Counseling's fixed income
group. He previously held management positions at Rockwell International
Corporation, Touche Ross & Co., and Pittsburgh National Bank. A Certified Public
Accountant and Chartered Financial Analyst, Mr. Early joined Delaware in 1994.
Portfolio Profile
October 31, 2000
Total net assets...................................................$7.3 million
Inception date................................................December 29, 1997
Number of holdings...........................................................45
Top 10 holdings
1. Fannie Mae 7.00% 2/1/30
2. Fannie Mae 7.25% 5/15/30
3. U.S. Treasury Notes 6.50% 2/15/10
4. Ginnie Mae 7.50% 8/15/30
5. Fannie Mae 7.25% 1/15/10
6. U.S. Treasury Notes 6.00% 8/15/09
7. Fannie Mae 7.00% 11/15/30
8. Ford Motor Credit 7.50% 3/15/05
9. Ginnie Mae 7.50% 6/15/30
10. Worldcom 7.55% 4/1/04
Asset Composition (based on total net assets)
Agency Mortgage-Backed Securities 34.19%
Agency Obligations 17.91%
Corporate Bonds 15.87%
U.S. Treasury Obligations 12.15%
Asset-Backed Securities 7.28%
Commerical Mortgage-Backed Securities 5.48%
Agency Collateralized Mortgage Obligations 2.32%
Non-Agency Collateralized Mortgage Obligations 1.23%
Net Cash & Other Assets 3.57%
2000 Annual Report o Delaware Pooled Trust 27
<PAGE>
High-Yield Bond:
Outperformance In A Tough Market
The past three years have been difficult for the high-yield bond market for a
number of reasons. In 1997 and 1998, a record number of deals came to market,
spreading available capital very thin. The very strong equity market, together
with the surge of dot.coms that went public during this time, took investor
attention and capital away from fixed income securities--particularly high-yield
bonds. Uncertainty over the Federal Reserve Board's interest-rate actions,
combined with three consecutive rate increases, contributed to investor anxiety.
Redemptions increased, fueling more apprehension. As the economy began to slow,
many anxious investors turned to higher quality debt, thus leaving behind lower
quality corporates, including investment grade A and BBB rated securities. And
finally, the good performance of long-term Treasuries relative to other fixed
income sectors, precipitated by the U.S. Treasury Department buyback of its
long-term debt, also drove investors to higher quality.
Under the circumstances, the Portfolio's 4.02% return for its recent fiscal year
was quite impressive: the Portfolio outperformed its benchmark by more than 400
basis points.
After three years of decline, we believe the market is poised for a turnaround.
However, we are aware that the uncertainties that led to this year's weak
performance may persist for some time. Therefore, we have focused on defensive
strategies, raising the overall quality of the Portfolio as investors remain
averse to risk. We doubled our exposure to the cable television sector, adding
Classic Cable, among others--all with good fundamentals and, in our view,
excellent prospects. We also increased our position in telecommunications
companies, most notably competitive local exchange companies (CLECs). New issues
include Nextlink Communications and Winstar Communication. We also reduced
exposure to consumer non-cyclicals.
Average Annual Total Return*
Periods ending October 31, 2000
--------------------------------------------------------------------------------
One Year Since Inception
4.02% 5.15%
--------------------------------------------------------------------------------
Growth of $10,000*
Salomon Smith Barney
High-Yield Bond Portfolio High-Yield Cash Pay Index ($000)
02-Dec-96 $10,000.00 10
31-Mar-97 $10,446.77 10.1
30-Jun-97 $11,114.46 10.2
30-Sep-97 $11,697.89 10.7
16-Dec-97 $11,927.92 11.1
20-Mar-98 $12,558.33 11.4
22-Jun-98 $12,877.11 11.9
22-Sep-98 $12,247.98 12
18-Dec-98 $12,121.05 11.5
22-Mar-99 $12,372.39 11.9
22-Jun-99 $12,307.30 12
22-Sep-99 $12,019.61 12
17-Dec-99 $12,541.29 11.8
22-Mar-00 $12,454.21 12
22-Jun-00 $12,309.97 11.7
22-Sep-00 $12,590.75 11.9
31-Oct-00 $12,173.83 11.6
* 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 Smith Barney High-Yield Cash Pay Index is an unmanaged index
and a theoretical measure of bond-market performance rather than an actual
available investment. The returns for each index have been calculated from the
start of the month closest to the corresponding Portfolio's inception date.
An expense limitation was in effect for The High-Yield Bond Portfolio during the
periods shown. Performance would have been lower if the expense limitation was
not in effect.
28 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
In the current environment, we continue to emphasize higher credit quality names
and individual companies whose prices are not low due to specific issuer credit
risk. We believe many attractive companies remain whose bonds are selling below
par. Provided their fundamentals remain strong, we expect these bonds to
appreciate as the market regains some of its lost momentum. Although we cannot
time the market's eventual rebound with precision, we have striven to structure
the Portfolio to benefit when it does occur.
Portfolio Managers
Jude T. Driscoll
Mr. Driscoll received a Bachelor of Arts degree from the University of
Pennsylvania. Prior to joining Delaware in 2000 he served as Sr. Vice President
for Conseco Capital Management's fixed income group. He previously held
management positions at NationsBanc Montgomery Securities and Goldman Sachs &
Co.
Peter C. Andersen
Mr. Andersen earned a master's degree in Finance from Harvard University, where
he was named a Seamans Fellow. He also holds a master's degree in Physics from
Yale University and a bachelor's degree in mathematics/physics from Northeastern
University, where he graduated summa cum laude. Prior to joining Delaware in
2000, Mr. Andersen was a portfolio manager at Conseco Capital Management, where
he managed high-yield portfolios for both institutional and retail investors.
Portfolio Profile
October 31, 2000
Total net assets...................................................$1.9 million
Inception date.................................................December 2, 1996
Number of holdings...........................................................52
Top 10 holdings
1. Intermedia Communications 9.50% 3/1/09
2. Carrols 9.50% 12/1/08
3. Huntsman 9.50% 7/1/07
4. Nextlink Communications 12.50% 4/15/06
5. Atlas Air 9.375% 11/15/06
6. Lyondell Chemical 9.875% 5/1/07
7. Golden Northwest 12.00% 12/15/06
8. Charter Communication 8.625% 4/1/09
9. J Crew 10.375% 10/15/07
10. Nextel International 12.75% 8/1/10
Asset Composition (based on total net assets)
Telecommunications 17.60%
Energy 8.49%
Chemicals 7.22%
Cable, Media & Publishing 6.36%
Healthcare & Pharmaceuticals 6.06%
Transportation & Shipping 5.65%
Restaurants 5.13%
Banking & Finance 4.78%
Metals & Mining 4.40%
Leisure, Lodging & Entertainment 2.65%
Buildings & Materials 2.50%
Retail 2.32%
Industrial Machinery 2.21%
Paper & Forest Products 2.07%
Utilities 1.62%
Electronics, Information & Data 1.61%
Consumer Products 1.35%
Preferred Stock 3.00%
Net Cash & Other Assets 14.98%
2000 Annual Report o Delaware Pooled Trust 29
<PAGE>
Diversified Core Fixed Income:
Strong Dollar Weakens Returns From High-Yield and Non-US Bonds
Despite weak markets for high-yield and international bonds this year, the
Diversified Core Fixed Income Portfolio slightly outperformed its benchmark for
the fiscal year ended October 31, 2000. The Portfolio's 7.59% return was enough
to beat the U.S. bond market as measured by the Lehman Brothers Aggregate Bond
Index. Returns were enhanced by strong weightings in mortgage-backed,
asset-backed and government agency bonds, as well as high quality corporates.
However, this benefit was offset by the Portfolio's exposure in high-yield and
international debt securities.
After three consecutive interest rate hikes by the Federal Reserve, the economy
began to slow and it seems that investors turned to higher quality debt, thus
leaving behind lower quality corporates, including investment grade A and BBB
rated securities. However, a move to higher quality bonds contributed to the
Portfolio's positive performance.
Over the past few years, the corporate bond markets have imitated the stock
market. Liquidity on an individual basis has been volatile. Corporate bond
performance has been often more closely tied to the behavior of the company's
stock rather than credit concerns. Although we reduced exposure to corporate
bonds, performance was still impacted.
Over the last year the Portfolio was modestly overweighted in international
bonds, currently at 13% of the Portfolio. We also had a modest position in
high-yield bonds, with the rest in high-quality U.S. bonds. Although
international bonds did well in their currencies, they underperformed due to the
strong dollar earlier in the year, while high-yield securities remained weak as
investors sought refuge in higher quality issues.
However, we took advantage of opportunities in the government agency market.
Congress threatened to rescind the government guarantees behind these agencies,
resulting in lower prices for their securities. We doubted this would occur, and
increased our holdings in Ginnie Mae (GNMA) and Fannie Mae (FNMA) securities.
Now that a compromise has been worked out, prices have recovered and the
Portfolio has profited.
Average Annual Total Return*
Periods ending October 31, 2000
--------------------------------------------------------------------------------
One Year Since Inception
7.59% 6.94%
--------------------------------------------------------------------------------
Growth of $10,000*
Diversified Core Lehman Brothers
Fixed Income Portfolio Aggregate Bond Index ($000)
29-Dec-97 $10,000.00 10
31-Mar-98 $10,352.94 10.1
30-Jun-98 $10,658.82 10.2
30-Sep-98 $10,776.47 10.4
18-Dec-98 $10,998.27 10.8
31-Mar-99 $11,119.86 10.9
30-Jun-99 $11,133.02 10.8
30-Sep-99 $11,133.02 10.7
17-Dec-99 $11,218.57 10.8
31-Mar-00 $11,232.65 10.7
30-Jun-00 $11,725.31 11
30-Sep-00 $12,091.28 11.3
31-Oct-00 $12,105.36 11.6
* 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. The returns for each index have been calculated from the start of
the month closest to the corresponding Portfolio's inception date.
An expense limitation was in effect for The Diversified Core Fixed Income
Portfolio during the periods shown. Performance would have been lower if the
expense limitation was not in effect.
30 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
Portfolio Managers
U.S. High-Yield Bonds
Jude T. Driscoll
Mr. Driscoll received a Bachelor of Arts degree from the University of
Pennsylvania. Prior to joining Delaware in 2000 he served as Sr. Vice President
for Conseco Capital Management's fixed income group. He previously held
management positions at NationsBanc Montgomery Securities and Goldman Sachs &
Co.
Peter C. Andersen
Mr. Andersen earned a master's degree in Finance from Harvard University, where
he was named a Seamans Fellow. He also holds a master's degree in Physics from
Yale University and a bachelor's degree in mathematics/physics from Northeastern
University, where he graduated summa cum laude. Prior to joining Delaware in
2000, Mr. Andersen was a portfolio manager at Conseco Capital Management, where
he managed high-yield portfolios for both institutional and retail investors.
U.S. Investment-Grade Bonds
Roger A. Early
Mr. Early received an undergraduate degree from the University of Pennsylvania's
Wharton School and an MBA in Finance from the University of Pittsburgh. He
served as Portfolio Manager for Federated Investment Counseling's fixed income
group. He previously held management positions at Rockwell International
Corporation, Touche Ross & Co., and Pittsburgh National Bank. A Certified Public
Accountant and Chartered Financial Analyst, Mr. Early joined Delaware in 1994.
Non-U.S. Bonds
John Kirk
Mr. Kirk is a math graduate from the University of Wales and has an M.A. in
operations research from Lancaster University. Before joining Delaware in 1998,
Mr. Kirk was at Royal Bank of Canada in London, where he was responsible for
European and Asian Fixed Income and had global responsibility for credit
analysis. He started his career at Ford Motor Company as a member of their
operations research group. Mr. Kirk is responsible for day-to-day management of
Delaware's fixed income team.
Portfolio Profile
October 31, 2000
Total net assets...................................................$7.7 million
Inception date................................................December 29, 1997
Number of holdings...........................................................81
Top 10 holdings
1. Fannie Mae 7.00% 7/25/30
2 Fannie Mae 5.75% 6/15/05
3. Ginnie Mae 6.50% 1/15/28
4. U.S. Treasury Notes 5.25% 2/15/29
5. U.S. Treasury Notes 5.50% 5/15/09
6. PECO Series 99-A A4 5.80% 3/1/07
7. Fannie Mae 7.00% 9/1/29
8. Philadelphia, Pennsylvania Authority For Industrial
Development Tax Claim Revenue Series 97-A 6.488% 6/15/04
9. Fannie Mae 7.25% 5/15/30
10. Daimlerchrysler 7.75% 6/15/05
Asset Composition (based on total net assets)
Agency Mortgage-Backed Securities 26.88%
Corporate Bonds 16.69%
Foreign Bonds 13.24%
U.S. Treasury Obligations 12.86%
Agency Obligations 12.85%
Asset-Backed Securities 8.57%
Commerical Mortgage-Backed Securities 1.15%
Non-Agency Collateralized Mortgage Obligations 0.64%
Agency Collateralized Mortgage Obligations 0.63%
Net Cash & Other Assets 6.49%
Christopher A. Moth
Mr. Moth is an actuarial graduate from The City University in London, and was
later awarded the Certificate in Finance & Investment from the London Institute
of Actuaries. He joined Delaware in 1992, after working for the GRE insurance
company where he was responsible for quantitative models and projections. He has
made a key contribution to the development of Delaware's global fixed income
product, and was primarily responsible for the structure of our in-house systems
to control and facilitate the investment process.
2000 Annual Report o Delaware Pooled Trust 31
<PAGE>
Balanced:
Equity Holdings Drag Down Performance
Fiscal 2000 was a volatile period for both the stock and bond markets. From the
end of 1999 until mid-March 2000, it seemed that the stock market focused almost
exclusively on growth stocks, ignoring value-oriented investments. In March,
growth stock prices fell dramatically, and the markets broadened to include
shares of well established companies with steady earnings at reasonable prices.
The Portfolio's adherence to its strategy of investing in undervalued companies
that have consistent, stable earnings growth negatively affected its performance
until mid-year. Performance picked up notably towards the latter half of fiscal
2000, when our investment strategy began to return to favor. However, the
Portfolio registered an overall loss of (1.04)% for the 12-month period ended
October 31, 2000. This lagged its benchmark--a composite index consisting 60% of
the S&P 500 Index and 40% of the Lehman Brothers Aggregate Bond Index--which
returned 6.85% over the same period.
A major factor in our overall underperformance was our substantial
underweighting in technology stocks. Early in the fiscal year, 15% of the
Portfolio's equity assets were invested in technology, compared with a weighting
of more than 30% for the S&P 500 Index. The decline in technology prices over
the past six months gave us opportunity to purchase high-quality tech stocks
like EMC Corp., Electronic Data Systems and First Data. These companies have
consistent earnings growth, but have traded at relative valuation discounts to
their earnings history and to the market. At October 31, 2000, the Portfolio's
technology weighting (as a percentage of equity holdings) rose to 19.87%.
The Portfolio's positions in the energy, financial services and consumer staples
sectors all performed well after March. Seeing opportunities throughout the
sector, we took a broad approach to energy stocks and benefited from our
holdings in Amerada Hess and Halliburton.
Average Annual Total Return*
Periods ending October 31, 2000
-------------------------------------------------------------------------------
One Year Since Inception
(1.04)% (5.88)%
-------------------------------------------------------------------------------
Growth of $10,000*
60% S&P 500 Index/40%
Balanced Portfolio Lehman Brothers Aggregate Bond Index ($000)
30-Jun-99 $10,000.00 10
30-Sep-99 $9,141.17 9.8
17-Dec-99 $9,172.94 10
31-Mar-00 $9,172.94 10.2
30-Jun-00 $9,184.87 10.5
30-Sep-00 $9,220.65 10.6
31-Oct-00 $9,220.65 10.7
* Past performance is not necessarily indicative of future results. Total return
assumes reinvestment of dividends (or income) and capital gains, as well as no
reductions for taxes. The Standard & Poor's 500 Index and the Lehman Brothers
Aggregate Bond Index are unmanaged indices and theoretical measures of stock and
bond market performance rather than actual available investments. The returns
for each index have been calculated from the start of the month closest to the
corresponding Portfolio's inception date.
An expense limitation was in effect for The Balanced Portfolio during the
periods shown. Performance would have been lower if the expense limitation was
not in effect.
32 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
Our investments in financial companies such as MBNA and Capital One Financial,
and in government agencies such as Federal Home Loan Mortgage Corporation
(Freddie Mac), performed well. In consumer staples, we benefited by owning Best
Foods, a high quality company that was acquired by Unilever.
The Portfolio also experienced disappointments. Both Honeywell International,
which was since acquired by General Electric, and Procter & Gamble missed
earnings targets, and we paid the price when these stocks tumbled.
In fixed income, our large weighting in corporate bonds helped our performance
in the last calendar quarter of 1999. The Portfolio's quality bias helped
performance via the flight to quality after March; we underweighted lower-rated
corporates from February until fiscal year end. Overweighting in mortgage-backed
and agency-backed securities, agency debentures, AAA asset-backed and commercial
mortgage-backed bonds also helped performance, as did underweighting in
Treasuries.
Portfolio Managers
Equity
Francis X. Morris
Mr. Morris received a bachelor's degree at Providence College and an MBA degree
at Widener University. He joined Delaware in 1997. He previously served as Vice
President and Director of Equity Research at PNC Asset Management. He is
President of the Financial Analysts Society of Philadelphia and is a member of
the Association for Investment Management and Research and the National
Association of Petroleum Investment Analysts.
Fixed Income
Stephen R. Cianci
Mr. Cianci is a 1991 graduate of Widener University with a BS in Finance, Magna
Cum Laude, where he also received his MBA in 1992. Mr. Cianci joined Delaware in
1992 with the primary responsibility of maintaining the investment grade
analytical systems within Delaware's fixed income department. In addition, Mr.
Cianci performs portfolio analysis and extensive security analysis in mortgage
backed securities, CMOs, corporates, and asset backed securities. Mr. Cianci is
a Chartered Financial Analyst.
Portfolio Profile
October 31, 2000
Total net assets................................................$150.9 million
Inception date...................................................June 30, 1999
Number of holdings.........................................................112
Top 10 holdings
1. Fannie Mae 7.50% 10/1/29
2. U.S. Treasury Notes 6.50% 2/15/10
3. Freddie Mac
4. Fannie Mae 7.00% 2/1/30
5. Johnson & Johnson
6. Fannie Mae 7.50% 10/1/29
7. SBC Communications
8. General Electric
9. Tyco International
10. Tidewater
Asset Composition (based on total net assets)
Common Stock 58.04%
Agency Mortgage-Backed Securities 12.93%
Corporate Bonds 8.33%
U.S. Treasury Obligations 5.90%
Commerical Mortgage-Backed Securities 3.49%
Asset-Backed Securities 3.10%
Agency Obligations 2.47%
Agency Collateralized Mortgage Obligations 2.11%
Non-Agency Collateralized Mortgage Obligations 0.62%
Net Cash & Other Assets 3.01%
Paul C. Grillo, Jr.
Mr. Grillo holds a bachelor's degree in Business Management from North Carolina
State University and an MBA in Finance from Pace University. Prior to joining
Delaware in 1993, he served as Mortgage Strategist and Trader at Dreyfus
Corporation. He also served as Mortgage Strategist, Portfolio Manager, and
Financial Analyst at Chemical Bank. He is a Chartered Financial Analyst.
2000 Annual Report o Delaware Pooled Trust 33
<PAGE>
International Large-Cap Equity:
Currency Extremes Present Opportunities
By a number of measures, this has been a challenging year for international
large-cap investors. High levels of volatility have taxed investors' staying
power, as have remarkably disparate currency valuations. From the International
Large-Cap Equity Portfolio's inception on December 14, 1999 through October 31,
2000, the Portfolio declined 3.78%. Over the same period, the Portfolio's
benchmark, the Morgan Stanley Capital International EAFE Stock Index witnessed a
6.16% drop.
Through mid-March of this year, growth-oriented equities were generally the
strongest performers. The second half of this fiscal year has presented an
abrupt about-face: "new economy" companies lost favor, and we have seen a
gratifying broadening of the market beyond technology, media and
telecommunications stocks.
Most European equity markets outperformed the U.S. significantly in local terms.
France, for example, rose by 32.8%. In local terms, Europe rose by 21.1% for the
year.
These returns, however, were reduced to 0.9% because of the strength of the U.S.
dollar. Over the course of the year, the hegemony of the dollar deflated the
generally strong returns in local currencies in Europe and Australia, and
dragged down dollar-based net market returns across the world. The Euro is down
almost 20% for the fiscal year, and the Yen is down by 4.4%. Many currencies are
now at or near all-time lows against the dollar and as a result, we see
exceptional value in various international currencies.
Three of the Portfolio's highest performing companies this year were
European-based. The French telecommunications firm Alcatel gained 66% in local
currency terms. Elsevier, the Anglo-Dutch publisher, and ING, the
Netherlands-based financial services provider, had gains of 41% and 43%, (again,
in local currency terms) respectively, for the fiscal year. Although we remain
underweighted in Japan due to its ongoing structural problems, our investment in
Eisai has been successful, returning 42% in local currency for the period.
Total Return*
For the period December 14, 1999 to October 31, 2000
-------------------------------------------------------------------------------
(3.78)%
-------------------------------------------------------------------------------
Growth of $10,000*
International Large-Cap Equity Portfolio MSCI EAFE Stock Index (net) ($000)
14-Dec-99 $10,000.00 10
31-Jan-00 $9,398.76 10.9
29-Feb-00 $9,422.32 10.2
31-Mar-00 $9,716.77 10.9
30-Apr-00 $9,646.10 10.3
31-May-00 $9,704.99 10.1
30-Jun-00 $10,293.88 10.5
31-Jul-00 $9,999.44 10
31-Aug-00 $10,022.99 10.1
30-Sep-00 $9,610.77 9.6
31-Oct-00 $9,622.54 9.4
* Past performance is not necessarily indicative of future results. Total return
assumes reinvestment of dividends and capital gains, as well as no reductions
for taxes. The Morgan Stanley Capital International EAFE Stock Index (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. The returns for each
index have been calculated from the start of the month closest to the
corresponding Portfolio's inception date.
An expense limitation was in effect for The International Large-Cap Equity
Portfolio during the periods shown. Performance would have been lower if the
expense limitation was not in effect. The International Large-Cap Equity
Portfolio charges a 0.45% purchase reimbursement fee and a 0.35% redemption
reimbursement fee; these fees are not reflected in the returns shown above. The
Portfolio's returns would have been lower had these fees been deducted.
34 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
We continue to overweight regions where attractive valuations present excellent
investment opportunities, in our view. The strongest example of this is in New
Zealand and Australia, where very reasonably priced local markets and
undervalued currencies offer a convincing argument for our overweighted
position. We also remain overweighted in the UK and selected Continental
European countries, where we believe many valuations also remain compelling.
Portfolio Managers
Elizabeth A. Desmond
Ms. Desmond is a graduate of Wellesley College and the masters program in East
Asian studies at Stanford University. After working for the Japanese government
for two years, she began her investment career as a Pacific Basin investment
manager with Shearson Lehman Global Asset Management. Prior to joining Delaware
in 1991, she was a Pacific Basin equity analyst and senior portfolio manager at
Hill Samuel Investment Advisers Ltd. Ms. Desmond is a Chartered Financial
Analyst.
Nigel G. May
Mr. May is a graduate of Sidney Sussex College, Cambridge University, where he
completed his Masters in Engineering. He joined Delaware in 1991, assuming
portfolio management responsibilities as well as sharing analytical
responsibilities for Continental Europe. He now leads the European team's
research effort. Mr. May was formerly a senior portfolio manager and analyst
with Hill Samuel Investment Advisers Ltd., beginning in 1986. Mr. May is an
Associate of the Institute of Investment Management and Research.
Portfolio Profile
October 31, 2000
Total net assets...................................................$2.9 million
Inception date................................................December 14, 1999
Asset composition (based on total net assets)
Common stocks.........................................................98.36%
Cash equivalents and other net assets..................................1.64%
Number of holdings...........................................................40
Top 10 holdings
1. Matsushita Electric
2. Glaxo Wellcome
3. National Australia Bank
4. HSBC
5. Total Fina Class B ADR
6. Bayer
7. Hong Kong Electric
8. Societe Generale
9. Boots
10. Royal Dutch Petroleum
Geographic Composition (based on total net assets)
United Kingdom 29.01%
Japan 13.42%
France 11.09%
Australia 10.44%
Germany 9.89%
Netherlands 8.52%
Spain 6.43%
Hong Kong 3.20%
Singapore 1.77%
New Zealand 1.58%
Belgium 1.51%
South Korea 0.82%
Finland 0.68%
2000 Annual Report o Delaware Pooled Trust 35
<PAGE>
Global Equity:
Soaring U.S. Dollar Trumps Strong Returns in Europe
By a number of measures, this has been a challenging year for global investors.
The ascendancy of the dollar pummeled local currencies and deflated strong
returns in Europe and Australia. Through mid-March of this year, growth-oriented
equities generally rewarded investors. The second half of this fiscal year has
presented virtually a mirror image of that climate. Stable companies with strong
cash flows and a greater emphasis on fundamentals have typically been the best
performers. The Global Equity Portfolio, with its strong value style and
underweighted position in the U.S. dollar, lagged its benchmark, the Morgan
Stanley Capital International World Stock Index. The Portfolio posted a net loss
of 0.81%, compared with the Index's gain of 1.09% for the 12 months ending
October 31, 2000.
In the U.S. and in most international markets, a sharp division in sector
valuations has occurred. Globally, valuations lie near dead center of their
15-year trading range. The noteworthy exceptions are the TMT (technology, media
and telecommunications) sectors. Despite downward adjustments in the prices of
these companies since the second quarter, overall valuations continue to appear
somewhat bloated.
Most of the European equity markets outperformed the U.S. significantly in local
terms. France, for example, rose by 32.8%. Europe's overall gain, however, was
reduced to 0.9% because of the strength of the U.S. dollar. Over the course of
the year, the hegemony of the dollar deflated the generally strong returns of
local currencies in Europe and Australia, and dragged down dollar-based net
market returns across the world. The euro is down almost 20% for the fiscal
year, and the yen is down by 4.4%. Many currencies are now at or near
all-time lows against the dollar. As a result, we see exceptional value in a
number of international currencies.
Some of the Portfolio's top individual performers for the year are
European-based companies. These include the French telecommunications firm
Alcatel, Germany's electronics giant Siemens, the Dutch financial services
provider ING and the UK-based cement stock Blue Circle, which posted returns in
local currency terms of 142%, 75%, 46%, and 41%, respectively. Although we
remain underweighted in Japan due to the structural problems that remain to be
addressed there, our investment in Canon bore fruit for the Global Equity
Portfolio, returning 45% in local currency for the fiscal year.
Average Annual Total Return*
Periods ending October 31, 2000
--------------------------------------------------------------------------------
One Year Since Inception
(0.81)% 3.15%
--------------------------------------------------------------------------------
Growth of $10,000*
Global Equity Portfolio MSCI World Stock Index (net) ($000)
15-Oct-97 $10,000.00 10
16-Dec-97 $9,670.55 10.2
31-Mar-98 $11,023.24 10.6
30-Jun-98 $10,892.71 11.8
30-Sep-98 $9,741.74 11.7
18-Dec-98 $10,714.77 10.4
30-Mar-99 $10,972.51 12.2
30-Jun-99 $11,610.73 12.7
30-Sep-99 $10,911.14 13.3
17-Dec-99 $11,301.40 13.8
31-Mar-00 $11,250.03 14.8
30-Jun-00 $11,455.51 15.1
30-Sep-00 $10,903.28 15.5
31-Oct-00 $10,993.18 14.6
* Past performance is not necessarily indicative of future results. Total return
assumes reinvestment of dividends and capital gains, as well as no reductions
for taxes. The Morgan Stanley Capital International World 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. The returns for each
index have been calculated from the start of the month closest to the
corresponding Portfolio's inception date.
An expense limitation was in effect for The Global Equity Portfolio during the
periods shown. Performance would have been lower if the expense limitation was
not in effect. The Portfolio also charges a 0.40% purchase reimbursement fee and
a 0.30% redemption reimbursement fee; these fees are not reflected in the
returns shown above. The Portfolio's returns would have been lower had these
fees been deducted.
36 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
We have an underweighted position in U.S. equities as we believe this market
offers poor value relative to many other markets around the world. Our stance on
U.S. investment is somewhat more guarded than the consensus view. Inflationary
pressures, including a tight labor market and the high cost of oil, though
easing, remain high.
We believe more attractive opportunities currently lie in other regions where
cheap markets and heavily undervalued currencies offer more potential in terms
of real returns on the U.S. dollar. The Portfolio's weightings over the past
year have seen no significant shifts. We have opportunistically added holdings
in Finland, Korea and Singapore. Our stake in Finland's UPM has bumped us out of
our zero weighting in Scandinavia, but not to a great degree. We remain
overweighted in the UK and selected Continental European countries, where we
believe many company valuations remain compelling.
Portfolio Managers
Elizabeth A. Desmond
Ms. Desmond is a graduate of Wellesley College and the masters program in East
Asian studies at Stanford University. After working for the Japanese government
for two years, she began her investment career as a Pacific Basin investment
manager with Shearson Lehman Global Asset Management. Prior to joining Delaware
in 1991, she was a Pacific Basin equity analyst and senior portfolio manager at
Hill Samuel Investment Advisers Ltd. Ms. Desmond is a Chartered Financial
Analyst.
Robert L. Arnold
Mr. Arnold earned a bachelor's degree in Economics from Carnegie Mellon
University and an MBA in Finance and Business Strategy from the University of
Chicago. Prior to joining Delaware in 1992, he was involved in strategic
analysis assignments for the Office of the Chairman at Chemical Banking
Corporation. He is a Director of the Bank and Financial Analysts Association.
Portfolio Profile
October 31, 2000
Total net assets..................................................$3.3 million
Inception date................................................October 15, 1997
Asset composition (based on total net assets)
Common stocks.........................................................96.31%
Cash equivalents and other net assets..................................3.69%
Number of holdings..........................................................67
Top 10 holdings
1. Glaxo Wellcome
2. GKN
3. Cable & Wireless
4. Bass
5. RWE
6. Fannie Mae
7. Royal Dutch Petroleum
8. Bayer
9. Avon Products
10. Bristol Myers Squibb
Geographic Composition (based on total net assets)
United States 32.68%
United Kingdom 21.13%
Germany 8.08%
Australia 6.32%
France 5.37%
Netherlands 5.35%
Japan 3.78%
Hong Kong 3.49%
Spain 2.67%
New Zealand 1.46%
Belgium 1.36%
South Africa 1.34%
Malaysia 1.14%
Singapore 0.97%
South Korea 0.72%
Finland 0.45%
2000 Annual Report o Delaware Pooled Trust 37
<PAGE>
International Equity:
Volatility and Currency Valuations Test Markets
By a number of measures, this has been a challenging year for global investors.
The ascendancy of the dollar pummeled local currencies and deflated strong
returns in Europe and Australia. Through mid-March of this year, growth-oriented
equities generally rewarded investors. The second half of this fiscal year has
presented virtually a mirror image of that climate. Stable companies with strong
cash flows and a greater emphasis on fundamentals have typically been the best
performers. In this environment, the International Equity Portfolio performed
much better than its benchmark, the Morgan Stanley Capital International EAFE
Stock Index. The Portfolio returned 3.35%, whereas the Index lost 2.90% for the
12 months ending October 31, 2000.
Most of the European equity markets outperformed the U.S. significantly in local
terms. France, for example, rose by 32.8%. Europe's overall gain, however, was
reduced to 0.9% because of the strength of the U.S. dollar. Over the course of
the year, the hegemony of the dollar deflated the generally strong returns in
local currencies in Europe and Australia and dragged down dollar-based net
market returns across the world. The Euro is down almost 20% for the fiscal
year, and the Yen is down by 4.4%. Many currencies are now at or near all-time
lows against the dollar and, as a result, we see exceptional value in a number
of international currencies.
Some of the Portfolio's top individual performers for the year are
European-based companies. These include French telecommunications firm Alcatel,
Germany's electronics giant Siemens, the Dutch financial services provider ING
and the UK-based cement stock Blue Circle, which posted returns in local
currency terms of 142%, 75%, 46%, and 41%, respectively. Although we remain
underweighted in Japan due to the structural problems that remain to be
addressed there, our investment in Canon bore fruit for the International Equity
Portfolio, returning 45% in local currency for the fiscal year.
Average Annual Total Return*
Periods ending October 31, 2000
--------------------------------------------------------------------------------
One Year Five Years Since Inception
3.35% 9.86% 10.11%
--------------------------------------------------------------------------------
Growth of $10,000*
International Equity Portfolio MSCI EAFE Stock Index (net) ($000)
04-Feb-92 $10,000.00 10
30-Jun-92 $10,189.99 9.6
31-Dec-92 $9,959.35 9.5
30-Jun-93 $11,283.89 9.2
30-Dec-93 $12,918.86 12.1
30-Jun-94 $13,204.76 12.9
28-Dec-94 $13,306.18 13.4
30-Jun-95 $13,910.60 12.3
27-Dec-95 $15,124.84 13.4
28-Jun-96 $16,381.42 14.4
12-Dec-96 $17,702.04 14.5
30-Jun-97 $20,759.79 14.8
16-Dec-97 $18,697.15 15.8
22-Jun-98 $20,701.58 17.1
18-Dec-98 $20,511.45 15.8
22-Jun-99 $22,939.28 18
17-Dec-99 $24,030.16 19.8
30-Jun-00 $24,925.04 22.5
31-Oct-00 $23,214.24 20.2
* Past performance is not necessarily indicative of future results. Total return
assumes reinvestment of dividends and capital gains, as well as no reductions
for taxes. The Morgan Stanley Capital International EAFE Stock Index (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. The returns for each
index have been calculated from the start of the month closest to the
corresponding Portfolio's inception date.
An expense limitation was in effect for The International Equity Portfolio
during the periods shown. Performance would have been lower if the expense
limitation was not in effect.
We continue to focus on regions where heavily undervalued currencies present
attractive opportunities. The strongest example of this is in New Zealand and
Australia, where very reasonably priced local markets and undervalued currencies
offer a convincing argument for our overweighted position.
38 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
The Portfolio's weightings over the past year have seen no significant shifts.
We have opportunistically added holdings in Finland, Korea and Singapore. Our
stake in Finland's UPM has bumped the Portfolio out of a zero weighting in
Scandinavia, but not to a great degree. We remain overweighted in the UK and
selected Continental European countries, where we believe many company
valuations remain compelling.
Until very recently, we have had reservations about TMT (technology, media and
telecommunications) stocks as a group. Although we remain convinced that in
general these sectors are overvalued, we are beginning to search for value in
individual positions. Looking forward, we continue to see striking opportunities
in many sectors of this volatile global market environment. We believe that our
disciplined approach positions us well to take advantage of pricing anomalies in
stocks, markets, and currencies.
Portfolio Managers
Elizabeth A. Desmond
Ms. Desmond is a graduate of Wellesley College and the masters program in East
Asian studies at Stanford University. After working for the Japanese government
for two years, she began her investment career as a Pacific Basin investment
manager with Shearson Lehman Global Asset Management. Prior to joining Delaware
in 1991, she was a Pacific Basin equity analyst and senior portfolio manager at
Hill Samuel Investment Advisers Ltd. Ms. Desmond is a Chartered Financial
Analyst.
Clive A. Gillmore
A graduate of the University of Warwick and the London Business School of
Investment Management Program, Mr. Gillmore joined Delaware in 1990. He was
previously a senior portfolio manager for Hill Samuel Investment Advisers Ltd.
He has extensive experience in analyzing international markets and managing
client portfolios with a wide range of mandates. Mr. Gillmore began his career
with Legal and General Investment management, has a total of 16 years experience
in the industry.
Fiona A. Barwick
Ms. Barwick is a graduate of University College, London. She joined Delaware in
the Spring of 1993 to cover the Pacific Basin markets. Prior to this, she spent
three years at Touche, Remnant & Co. in London as an assistant portfolio manager
and research analyst. Fiona is an Associate of the Institute of Investment
Management and Research.
Portfolio Profile
October 31, 2000
Total net assets.................................................$545.7 million
Inception date.................................................February 4, 1992
Asset composition (based on total net assets)
Common stocks.........................................................98.58%
Cash equivalents and other net assets..................................1.42%
Number of holdings...........................................................56
Top 10 holdings
1. Canon
2. National Australia Bank
3. Total Fina Class B ADR
4. Bayer
5. Great Universal Stores
6. Hitachi
7. Societe Generale
8. Matsushita Electric
9. Bass
10. Telefonica
Geographic Composition (based on total net assets)
United Kingdom 28.68%
Japan 14.50%
France 10.07%
Australia 9.97%
Germany 9.50%
Netherlands 7.78%
Spain 5.60%
Hong Kong 3.98%
New Zealand 2.02%
South Africa 1.85%
Belgium 1.13%
Singapore 0.99%
South Korea 0.93%
Finland 0.82%
Malaysia 0.76%
2000 Annual Report o Delaware Pooled Trust 39
<PAGE>
Labor Select International Equity:
A Tale of Two Halves
The first five months of the past fiscal year were agonizing for investors
focused on fundamentals. During November and December of 1999 and in the first
quarter of 2000, the international equity markets were embroiled in a
technology, media and telecommunications-driven boom. The Labor Select
International Equity Portfolio posted modest gains, solidly outpacing its
benchmark, the Morgan Stanley Capital International EAFE Stock Index.
Since that time, international equity markets have turned around dramatically.
The Portfolio finished the 12-month period ending October 31, 2000 with a gain
of 3.07%. The Index closed the same period with a loss of 2.90%.
Since the end of March, telecommunications stocks in particular have headed
downward. The technology sector was more erratic, and its fate depended on
companies' specific areas of focus. The mobile telephone firms such as Nokia,
Eriksson and Alcatel maintained a strong performance; anything dot.com was hit
very hard. The Portfolio had no exposure to the latter and a small exposure to
the former. Our investment philosophy allows us to invest in a range of
industries on a global basis, but the vast proportion of the Portfolio continues
to be based in real businesses, with real profits.
Because of the huge volatility currently seen in individual stocks, and in
particular the relative size of some technology stocks, large stocks have tended
to dictate the performance of their respective sectors. In U.S. dollar terms,
the strongest performing markets were Finland, Denmark, Sweden and Norway, to
which we maintained no exposure because of their domination by overvalued
companies like Nokia and Snara. Norway's equity markets, we believe, are too
driven by the strength of its oil price. We have found more attractive
vertically-integrated oil exposure in other markets--for example, Royal Dutch
Petroleum in the Netherlands.
Average Annual Total Return*
Periods ending October 31, 2000
-------------------------------------------------------------------------------
One Year Since Inception
3.07% 10.87%
-------------------------------------------------------------------------------
Growth of $10,000*
Labor Select MSCI EAFE
International Equity Portfolio Stock Index (net) ($000)
19-Dec-95 $10,000.00 10
29-Mar-96 $10,820.64 10
28-Jun-96 $11,031.46 10.6
30-Sep-96 $11,544.79 10.1
12-Dec-96 $12,200.79 10.3
31-Mar-97 $12,839.03 10.2
30-Jun-97 $14,034.86 10.5
30-Sep-97 $14,602.62 12
16-Dec-97 $13,578.51 10.8
20-Mar-98 $15,279.88 11.3
22-Jun-98 $15,323.26 12.5
22-Sep-98 $13,581.95 12.6
18-Dec-98 $15,100.55 11.9
31-Mar-99 $15,956.78 12.9
30-Jun-99 $16,357.90 13.7
30-Sep-99 $16,089.93 13.9
17-Dec-99 $16,785.85 14.6
22-Mar-00 $16,231.47 15.4
22-Jun-00 $17,283.61 15.6
22-Sep-00 $16,288.52 15.1
31-Oct-00 $16,525.96 14.2
* Past performance is not necessarily indicative of future results. Total return
assumes reinvestment of dividends and capital gains, as well as no reductions
for taxes. The Morgan Stanley Capital International EAFE Stock Index (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. The returns for each
index have been calculated from the start of the month closest to the
corresponding Portfolio's inception date.
An expense limitation was in effect for The Labor Select International Equity
Portfolio during the periods shown. Performance would have been lower if the
expense limitation was not in effect.
40 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
One story of note has been the relative weakness of Japan, which was down 11.6%
in U.S. dollars. Japan clearly presents one of the weakest markets, and we have
underweighted Japan for a significant period of time. Japan continues to face
significant long-term structural difficulties, including a challenging change in
demographics and underfunded pension schemes.
We continue to believe that the UK and Europe present very attractive
opportunities for investment. We are overweighted in the UK, Spain, Belgium and
the Netherlands, and are benchmark-neutral in a range of European markets
including France and Germany. We remain heavily overweighted in Australasia. We
believe their currencies are deeply undervalued, while, in local terms, the
markets look very attractive. This combination suggests a strong U.S. dollar
real return potential going forward.
Our investment strategy is based on the belief that it is far easier to make
predictions on underlying long-term fundamentals, as opposed to trying to
anticipate short-term developments. It's clear that the volatility we've seen
over the past 12 months should continue for some time longer. In the current
climate, the slightest disappointment in earnings triggers a significant fall in
a company's share price. We continue to believe that the U.S. market remains
relatively overvalued. For investors, this means that international markets are
a good place to invest--and make sense from a diversification viewpoint. But
should U.S. markets fall heavily in the near future, internationals could fall
also, as they are closely correlated over the short term.
Portfolio Manager
Clive A. Gillmore
A graduate of the University of Warwick and the London Business School of
Investment Management Program, Mr. Gillmore joined Delaware in 1990. He was
previously a senior portfolio manager for Hill Samuel Investment Advisers Ltd.
He has extensive experience in analyzing international markets and managing
client portfolios with a wide range of mandates. Mr. Gillmore began his career
with Legal and General Investment Management and has a total of 16 years
experience in the industry.
Portfolio Profile
October 31, 2000
Total net assets..................................................$89.8 million
Inception date................................................December 19, 1995
Asset composition (based on total net assets)
Common stocks.........................................................97.65%
Cash equivalents and other net assets..................................2.35%
Number of holdings...........................................................46
Top 10 holdings
1. Societe Generale
2. Total Fina Class B ADR
3. National Australia Bank
4. Matsushita Electric
5. Glaxo Wellcome
6. Canon
7. Boots
8. Banco Santander Central Hispanoamericano
9. Great Universal Stores
10. Bass
Geographic Composition (based on total net assets)
United Kingdom 31.35%
Japan 14.13%
Germany 11.54%
France 10.59%
Australia 10.43%
Netherlands 8.39%
Spain 6.59%
New Zealand 2.44%
Belgium 1.47%
Finland 0.72%
2000 Annual Report o Delaware Pooled Trust 41
<PAGE>
International Small-Cap:
Patience Begins to be Rewarded as Investors Reassess Valuations
During the first half of the fiscal year, as we sat on the sidelines during the
feeding frenzy on generally overstretched technology stocks, the International
Small-Cap Portfolio's performance struggled vs. its benchmark. Since then, as
investors have become more attuned to realistic valuations, the Portfolio made
up a tremendous amount of ground. The Portfolio finished year-end October 31,
2000 with a loss of 2.96%; the Salomon Smith Barney Extended Market Index
(ex-U.S.) lost 1.07% for the same period. While our discipline was tested for
much of the year, our focus on undervalued and unfashionable areas of the market
has begun to be rewarded.
It's important to note that where we have been able to find tech companies with
sensible valuations, we have fully embraced them. For example, the Portfolio's
investment in Miyachi Technos, a Japanese manufacturer of small-scale lasers in
great demand from the telecommunications and opto-electronics industries,
returned close to 300% for the year. ASM Pacific, a manufacturer of
semiconductor production equipment based in Hong Kong, also performed well for
the Portfolio, returning a profit of over 100% before we sold this position.
The Portfolio has had significant successes in both the Netherlands and France,
with five investments there providing triple-digit percentage returns. Our
investments in Germany have yet to fulfill their potential. We've held some
exposure to the engineering sector where we believed an increasingly undervalued
currency would help to kick start operations. The restructuring that we had
anticipated has been relatively disappointing. That said, the potential remains
and we believe it will be realized. Results in the U.K. have been mixed as well.
We've been positioned in quite a few food-and-beverage companies that have not
caught the attention of a market obsessed with finding companies that can
generate gains in revenue many times GDP.
The Portfolio remains overweighted in the U.K. We view U.K. equities in general
as fundamentally mispriced relative to their ability to generate dividend flow
and growth.
<PAGE>
Average Annual Total Return*
Periods ending October 31, 2000
--------------------------------------------------------------------------------
One Year Since Inception
(2.96)% (0.98)%
--------------------------------------------------------------------------------
Growth of $10,000*
International Salomon Smith Barney Extended
Small-Cap Portfolio Market Index (ex-U.S.) ($000)
20-Jul-99 $10,000.00 10
31-Aug-99 $10,141.17 10.2
30-Sep-99 $10,647.05 10.1
31-Oct-99 $10,176.47 10
30-Nov-99 $10,282.35 10.4
17-Dec-99 $10,065.84 11.1
31-Jan-00 $9,862.85 10.8
29-Feb-00 $9,719.57 11.2
31-Mar-00 $9,862.85 11.3
30-Apr-00 $9,385.23 10.6
31-May-00 $9,325.53 10.4
30-Jun-00 $9,862.85 11.1
31-Jul-00 $9,707.63 10.7
31-Aug-00 $10,113.60 11
30-Sep-00 $9,934.50 10.5
31-Oct-00 $9,874.79 9.9
* Past performance is not necessarily indicative of future results. Total return
assumes reinvestment of dividends and capital gains, as well as no reductions
for taxes. The Salomon Smith Barney Extended Market Index (ex-U.S.) 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. The returns for each
index have been calculated from the start of the month closest to the
corresponding Portfolio's inception date.
An expense limitation was in effect for The International Small-Cap Equity
Portfolio during the periods shown. Performance would have been lower if the
expense limitation was not in effect. The Portfolio also charges a 0.55%
purchase reimbursement fee and a 0.45% redemption reimbursement fee; these fees
are not reflected in the returns shown above. The Portfolio's returns would have
been lower had these fees been deducted.
42 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
We're also finding that as the technology bubble unwinds, some jewels remain in
the dustbin of discarded technology stocks; we believe we're in a good position
to take advantage of another wave of mispricing of this industry's companies.
Though currently underweighted in Japan, we remain bullish about the small-cap
climate there and are looking to increase our exposure. Sales and marketing
efforts coupled with fairly radical cost reduction exercises of small-cap firms
there have the potential to generate explosive profit growth, in our view.
In other geographical weightings, our overweighting in France and underweighting
in Australia have worked well, as these markets have respectively out- and
under-performed the wider index. Our lack of enthusiasm for Australia and New
Zealand generally reflected the lack of opportunities in our portion of the
market.
Portfolio Managers
Clive A. Gillmore
A graduate of the University of Warwick and the London Business School of
Investment Management Program, Mr. Gillmore joined Delaware in 1990. He was
previously a senior portfolio manager for Hill Samuel Investment Advisers Ltd.
He has extensive experience in analyzing international markets and managing
client portfolios with a wide range of mandates. Mr. Gillmore began his career
with Legal and General Investment management and has a total of 16 years
experience in the industry.
Gavin A. Hall
Mr. Hall joined Delaware in February 1991. He began his investment career with
Baring Investment Management Ltd., after attending Dulwich College and in 1988
joined Hill Samuel Investment Advisers Ltd, where he was a portfolio manager and
research analyst covering the UK market. At Delaware, his research
responsibilities have included global small cap stocks, the United Kingdom,
Continental European and Asian equity markets.
<PAGE>
Portfolio Profile
October 31, 2000
Total net assets..........................................$3.0 million
Inception date...........................................July 20, 1999
Asset composition (based on total net assets)
Common stocks................................................92.37%
Cash equivalent and other net assets..........................7.63%
Number of holdings..................................................77
Top 10 holdings
1. Miyachi Technos
2. Lindt & Spruengli
3. Otsuka Kagu Limited
4. Northern Foods
5. Rexam
6. PizzaExpress
7. Laird Group
8. Dairy Crest Group
9. FAG Kugelfischer Georg Schaefer
10. Nera
Geographic Composition (based on total net assets)
United Kingdom 31.97%
----------------------------------------------------------------------
Japan 16.52%
---------------------------------------------
France 9.28
--------------------------------
Germany 8.91%
-----------------------------
Netherlands 6.16%
-------------------------
Singapore 5.20%
-----------------------
Hong Kong 4.08%
---------------------
Switzerland 2.66%
------------
Norway 1.83%
----------
Denmark 1.36%
---------
Italy 1.30%
--------
New Zealand 1.26%
-------
Australia 0.74%
----
Finland 0.57%
--
Spain 0.53%
--
2000 Annual Report o Delaware Pooled Trust 43
<PAGE>
Emerging Markets:
Mixed Year, Current Valuations Appear Compelling
The Emerging Markets Portfolio bettered its benchmark, the Morgan Stanley
Capital International Emerging Markets Free (Equity) Index, by posting a net
loss of 2.40% vs. a loss of 29.51% for the Index during the fiscal year 2000.
The past year began with a concentration of investor attention on the "TMT"
(technology, media and telecommunications) sectors, but after March this unwound
in the light of more realistic assessments of future performance. Emerging
markets as a whole have fared similarly. During the first half of the fiscal
year, both the Emerging Markets Portfolio and its Index posted net positive
returns of over 10%. Not surprisingly, the stocks most responsible for the
Portfolio's gains during that period were technology-focused, with a majority of
these in Asia, including India, Taiwan and Thailand.
The U.S. dollar's strength has had two kinds of negative impact on emerging
market returns. In the case of countries with dollar linked currencies, such as
Argentina, exporting to the rest of the world has been very tough and has
damaged profitability. In the case of others the weak currency translates into
lower dollar values. As regional valuation differentials have narrowed, country
and stock differentials have taken on more relative importance. Here, the
Portfolio's success relative to its benchmark is largely attributable to our
evaluation methodology. Our analysis captures elements of growth, but refuses to
overpay for it.
The Portfolio's overexposure in Brazil, for example, has helped it outperform
the Index during the period. We are now, to some extent, forced to reassess this
aggressive exposure as other managers begin to see value in Brazil. As the
consensus shifts our way, overall performance may therefore tail off, but we
continue to consider our overweighting in Brazil justified to a large degree by
continuing attractive valuations.
<PAGE>
Average Annual Total Return*
Periods ending October 31, 2000
--------------------------------------------------------------------------------
One Year Since Inception
(2.40)% (8.09)%
Growth of $10,000*
MSCI Emerging Markets
Emerging Markets Portfolio Free (Equity) Index ($000)
14-Apr-97 $10,000.00 10
30-Jun-97 $11,190.00 9.8
30-Sep-97 $10,790.00 10.1
16-Dec-97 $8,734.97 6
31-Mar-98 $9,621.72 5
30-Jun-98 $7,287.64 5.3
30-Sep-98 $5,656.84 4.1
18-Dec-98 $5,697.62 4.1
31-Mar-99 $6,167.20 4.7
30-Jun-99 $7,805.53 6.1
30-Sep-99 $7,482.04 7
17-Dec-99 $9,061.94 7
31-Mar-00 $9,294.30 8.7
30-Jun-00 $8,650.03 7.6
30-Sep-00 $7,826.22 7.1
31-Oct-00 $7,414.31 5.3
* 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. The returns for
each index have been calculated from the start of the month closest to the
corresponding Portfolio's inception date.
An expense limitation was in effect for The Emerging Markets Portfolio during
the periods shown. Performance would have been lower if the expense limitation
was not in effect. The Portfolio also charges a 0.75% purchase reimbursement fee
and a 0.75% redemption reimbursement fee; these fees are not reflected in the
returns shown above. The Portfolio's returns would have been lower had these
fees been deducted.
44 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
Our long-standing underposition in Korean stocks has also contributed to the
Portfolio's outperformance versus its benchmark. Unlike the widely held view
that a number of fiscal issues there had been resolved, we saw worrisomely
little progress in reducing excessive debt levels. We remain heavily
underweighted in Korea and are only now considering tentatively and selectively
increasing our weighting there.
In this time of strikingly cheap currencies versus the U.S. dollar, we also
remain slightly at odds with the consensus about certain currencies currently
under pressure. Our positions in South Africa reflect our confidence that the
currency there is drastically undervalued. However, it has been possible to
hedge our exposure there by holding natural resource stocks like Sappi, Sasol
and Iscor, most of whose sales are dollar-based.
Other successful positions during the past year have included exposure to
European stocks outside the Index, including companies based in Croatia and
Estonia.
Portfolio Managers
Robert Akester
A graduate of University College, London, Mr. Akester joined Delaware in 1996.
Prior to joining Delaware, his most recent position was as Director of Hill
Samuel Investment Advisers Ltd., where he had responsibility for significant
overseas clients and Far Eastern markets. Mr. Akester is an Associate of the
Institute of Actuaries with more than 30 years of investment experience.
Clive A. Gillmore
A graduate of the University of Warwick and the London Business School of
Investment Management Program, Mr. Gillmore joined Delaware in 1990. He was
previously a senior portfolio manager for Hill Samuel Investment Advisers Ltd.
He has extensive experience in analyzing international markets and managing
client portfolios with a wide range of mandates. Mr. Gillmore began his career
with Legal and General Investment management and has a total of 16 years
experience in the industry.
<PAGE>
Portfolio Profile
October 31, 2000
Total net assets.............................................$115.0 million
Inception date...............................................April 14, 1997
Asset composition (based on total net assets)
Common stocks.....................................................94.74%
Cash equivalents and other net assets..............................5.26%
Number of holdings.......................................................70
Top 10 holdings
1. Companhia Paranaense de Energia Copel ADR
2. Gerdau Metalurgica
3. Sasol
4. ALFA Class A
5. Sappi
6. Telecomunicacoes de Minas Gerais
7. Uniao de Bancos Brasileiros
8. Brasil Telecom
9. Beijing Capital International Airport
10. Cemex de C.V.
Geographic Composition (based on total net assets)
Brazil 21.76%
--------------------------------------------------------------
South Africa 13.19%
---------------------------------------
China 6.71%
----------------------
Malaysia 6.36%
--------------------
Mexico 6.21%
-------------------
India 5.41%
----------------
Thailand 4.86%
--------------
Taiwan 4.11%
------------
Israel 3.37%
----------
Russia 3.21%
---------
Chile 3.10%
--------
South Korea 2.40%
-------
Greece 2.08%
------
United States 1.91%
-----
Croatia 1.77%
----
Hungary 1.68%
---
Egypt 1.49%
---
Argentina 1.48%
---
Other Countries 3.64%
-----------------
2000 Annual Report o Delaware Pooled Trust 45
<PAGE>
Global Fixed Income:
Excellent Value in Prospect for Non-U.S. Bond Markets
Rising interest rates and a very strong U.S. dollar squeezed the performance of
global bond markets throughout the past year. Currency volatility has been
extreme. Returns in local currency have been positive everywhere, but these have
been eaten away by the rising dollar. For the fiscal year ended October 31,
2000, the Global Fixed Income Portfolio fell 9.51%. The Portfolio's benchmark,
the Salomon Smith Barney World Government Bond Index, lost 5.08%.
We believe that a number of international currencies are now extraordinarily
undervalued. In particular the Euro, certain other European currencies, and the
Australian and New Zealand dollars have been hit hard as the U.S. dollar has
risen. The bulk of the Portfolio's underperformance for the year is due to our
overweighting in Australia, New Zealand and the Eurozone; as time progresses,
all of these should rebound from their extremes of undervaluation.
Dollar strength is the main reason for Euro weakness in our view; we are,
however, persuaded that its fundamentals remain convincingly solid. In our view,
Euroland is economically healthy, boasting a lower inflation rate than the U.S.,
both now and in prospect. The Euroland current account is in balance, whereas
the U.S. deficit is at record levels. As the U.S. economy cools, we believe it
will become increasingly difficult to attract the foreign capital needed to keep
the dollar riding high.
We look at inflation very closely as the basis for our asset allocation
decisions. The world economic boom points to an increase in inflation in most
markets, but most particularly in the U.S. This has been one factor in our
underweighting of the U.S. bond market: we do not believe dollar yields
adequately compensate investors for the risk of inflation in an economy that has
been growing at a torrid pace for so long. Recently, there has been some slowing
in the U.S., but we believe that the moderate inflationary tendencies will
persist. Over the past year, we have increased our underweighted stance.
<PAGE>
Average Annual Total Return*
Periods ending October 31, 2000
-----------------------------------------------------------------------------
One Year Five Years Since Inception
(9.51)% 2.91% 6.30%
-----------------------------------------------------------------------------
Growth of $10,000*
Global Fixed Salomon Smith Barney
Income Portfolio World Government Bond Index ($000)
30-Nov-92 $10,000.00 10
31-Dec-92 $10,110.00 10.8
30-Jun-93 $11,099.00 11.4
30-Dec-93 $11,963.59 11.3
30-Jun-94 $11,629.50 11.5
30-Dec-94 $12,196.33 11.9
30-Jun-95 $13,058.22 13.6
27-Dec-95 $14,467.41 13.7
28-Jun-96 $15,102.07 13.6
12-Dec-96 $16,495.51 14.3
30-Jun-97 $16,800.68 13.7
16-Dec-97 $16,963.25 14.7
22-Jun-98 $17,171.45 14.8
18-Dec-98 $18,503.09 16.5
22-Jun-99 $18,055.20 16
17-Dec-99 $17,582.35 16.1
30-Jun-00 $17,496.80 15.4
31-Oct-00 $16,227.60 15.3
* 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 Smith Barney 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. The returns for each index have been
calculated from the start of the month closest to the corresponding Portfolio's
inception date.
An expense limitation was in effect for The Global Fixed Income Portfolio during
the periods shown. Performance would have been lower if the expense limitation
was not in effect.
46 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
The Portfolio's holdings are overweighted to the Eurozone. As of October 31,
2000, the Portfolio had no holdings in Japan, which is issuing a lot of debt;
the prospective real yield is still very low and it remains a poor value market
in our opinion.
Portfolio Managers
Joanna Bates
Ms. Bates is a graduate of London University, and is an associate of the
Institute of Investment Management and Research. She joined Delaware's Fixed
Income team in 1997, before which she was Associate Director, Fixed Interest at
Hill Samuel Investment Advisers Ltd. She has also worked for Fidelity
International and Save & Prosper as a fund manager and analyst for global bond
markets. At Delaware, Ms. Bates specializes in credit issues and emerging market
debt.
John Kirk
Mr. Kirk is a math graduate from the University of Wales and has an M.A. in
operations research from Lancaster University. Before joining Delaware in 1998,
Mr. Kirk was at Royal Bank of Canada in London, where he was responsible for
European and Asian Fixed Income and had global responsibility for credit
analysis. He started his career at Ford Motor Company as a member of their
operations research group. Mr. Kirk is responsible for day-to-day management of
Delaware's fixed income team.
Christopher A. Moth
Mr. Moth is an actuarial graduate from The City University in London, and was
later awarded the Certificate in Finance & Investment from the London Institute
of Actuaries. He joined Delaware in 1992, after working for the GRE insurance
company where he was responsible for quantitative models and projections. He has
made a key contribution to the development of Delaware's global fixed income
product, and was primarily responsible for the structure of our in-house systems
to control and facilitate the investment process.
<PAGE>
Portfolio Profile
October 31, 2000
Total net assets.............................................$389.3 million
Inception date............................................November 30, 1992
Asset composition (based on total net assets)
Bonds.............................................................96.67%
Cash equivalents and other net assets..............................3.33%
Number of holdings.......................................................39
Top 10 holdings
1. U.S. Treasury Inflation Index Notes 3.625% 1/15/08
2. Government of France 4.00% 10/25/09
3. Kingdom of Belgium 5.75% 9/28/10
4. Queensland Treasury 8.00% 5/14/03
5. New Zealand Government 7.00% 7/15/09
6. Deutschland Republic 6.25% 1/4/24
7. Republic of Finland 3.75% 11/12/03
8. Portugese Government 5.375% 6/23/08
9. New Zealand Government 6.00% 11/15/11
10. New Zealand Government 8.00% 4/15/04
Geographic Composition (based on total net assets)
Germany 16.73%
-------------------------------------------------------
New Zealand 12.06%
--------------------------------------
United States 11.60%
------------------------------------
France 9.60%
---------------------------
Netherlands 8.43%
-----------------------
Australia 7.39%
-------------------
Austria 6.02%
--------------
Belgium 5.74%
------------
Finland 4.18%
---------
Portugal 3.89%
--------
SupraNational 2.98%
------
Italy 2.82%
-----
Canada 2.59%
----
Norway 1.76%
---
Korea 0.88%
--
2000 Annual Report o Delaware Pooled Trust 47
<PAGE>
International Fixed Income:
Non-U.S. Bond Markets Offer Excellent Prospective Value
Rising interest rates and a very strong U.S. dollar squeezed the performance of
global bond markets throughout the past year. Currency volatility has been
extreme. Returns in local currency have been positive everywhere, but these have
been eaten away by the rising dollar. For the fiscal year ended October 31,
2000, the International Fixed Income Portfolio fell 13.54%. The Portfolio's
benchmark, the Salomon Smith Barney Non-U.S. World Government Bond Index, lost
9.70%.
We believe that a number of international currencies are now extraordinarily
undervalued. In particular the Euro, certain other European currencies, and the
Australian and New Zealand dollars have been hit hard as the U.S. dollar has
risen. The bulk of the Portfolio's underperformance for the year is due to our
overweighting in Australia, New Zealand and the Eurozone; as time progresses, we
feel all of these should rebound from their extremes of undervaluation.
Dollar strength is the main reason for Euro weakness; we are, however, persuaded
that its fundamentals remain convincingly solid. Euroland is economically
healthy, boasting a lower inflation rate than the U.S. both now and in prospect.
The Euroland current account is in balance, whereas the U.S. deficit is at
record levels. As the U.S. economy cools, we believe it will become increasingly
hard to attract the foreign capital needed to keep the dollar riding high.
We look very closely at inflation as the basis for our asset allocation
decisions. The world economic boom points to an increase in inflation in most
markets, but most particularly in the U.S. This has been one factor in our
underweighting of the U.S. bond market; we do not believe dollar yields
adequately compensate investors for the risk of inflation in an economy that has
been growing at a torrid pace for so long. Recently, there has been some slowing
in the U.S., but we believe that the moderate inflationary tendencies will
persist and over the past year we have increased our underweighted stance.
<PAGE>
Average Annual Total Return*
Periods ending October 31, 2000
--------------------------------------------
One Year Since Inception
(13.54)% (1.37)%
--------------------------------------------
Growth of $10,000*
International Fixed Salomon Smith Barney
Income Portfolio Non-U.S. World Government Bond Index ($000)
11-Apr-97 $10,000.00 10
30-Jun-97 $10,380.00 9.8
30-Sep-97 $10,580.02 10
16-Dec-97 $10,412.20 10.5
20-Mar-98 $10,589.16 10.2
22-Jun-98 $10,474.04 10.4
22-Sep-98 $10,936.74 10.4
18-Dec-98 $11,430.23 11.9
22-Mar-99 $11,309.85 11.8
22-Jun-99 $11,034.79 11.4
22-Sep-99 $11,045.83 11.3
17-Dec-99 $10,764.72 11.5
22-Mar-00 $10,507.84 11
30-Jun-00 $10,531.32 10.7
30-Sep-00 $9,803.40 10.8
31-Oct-00 $9,521.63 10.4
* 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 Smith Barney Non-U.S. 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. The returns for each index have been
calculated from the start of the month closest to the corresponding Portfolio's
inception date.
An expense limitation was in effect for The International Fixed Income Portfolio
during the periods shown. Performance would have been lower if the expense
limitation was not in effect.
48 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
The Portfolio's holdings are generally overweighted to the Eurozone. As of
October 31,2000, the Portfolio had no holdings in Japan, which is issuing a lot
of debt; the prospective real yield is still very low and it remains a poor
value market in our opinion.
Portfolio Managers
Joanna Bates
Ms. Bates is a graduate of London University, and is an associate of the
Institute of Investment Management and Research. She joined Delaware's Fixed
Income team in 1997, before which she was Associate Director, Fixed Interest at
Hill Samuel Investment Advisers Ltd. She has also worked for Fidelity
International and Save & Prosper as a fund manager and analyst for global bond
markets. At Delaware, Ms. Bates specializes in credit issues and emerging market
debt.
John Kirk
Mr. Kirk is a math graduate from the University of Wales and has an M.A. in
operations research from Lancaster University. Before joining Delaware in 1998,
Mr. Kirk was at Royal Bank of Canada in London, where he was responsible for
European and Asian Fixed Income and had global responsibility for credit
analysis. He started his career at Ford Motor Company as a member of their
operations research group. Mr. Kirk is responsible for day-to-day management of
Delaware's fixed income team.
Christopher A. Moth
Mr. Moth is an actuarial graduate from The City University in London, and was
later awarded the Certificate in Finance & Investment from the London Institute
of Actuaries. He joined Delaware in 1992, after working for the GRE insurance
company where he was responsible for quantitative models and projections. He has
made a key contribution to the development of Delaware's global fixed income
product, and was primarily responsible for the structure of our in-house systems
to control and facilitate the investment process.
<PAGE>
Portfolio Profile
October 31, 2000
Total net assets..............................................$50.4 million
Inception date...............................................April 11, 1997
Asset composition (based on total net assets)
Bonds.............................................................96.37%
Cash equivalents and other net assets..............................3.63%
Number of holdings.......................................................37
Top 10 holdings
1. Kingdom of Belgium 5.75% 9/28/10
2. Portugese Government 5.375% 6/23/08
3. Deutschland Republic 4.00% 7/4/09
4. Deutschland Republic 6.00% 1/4/07
5. Netherlands Government 5.75% 2/15/07
6. New Zealand Government 7.00% 7/15/09
7. Republic of Finland 9.50% 3/15/04
8. Baden Wurt-Finance 5.25% 9/26/01
9. Nordic Investment Bank 4.875% 3/1/01
10. Republic of Austria 4.375% 2/28/02
Geographic Composition (based on total net assets)
Germany 21.43%
-------------------------------------------------------
Netherlands 14.48%
--------------------------------------
Supranational 11.35%
------------------------------
New Zealand 8.70%
--------------------
Australia 6.86%
------------------
Belgium 6.82%
----------------
Portugal 6.68%
--------------
United States 4.39%
----------
Finland 4.37%
---------
Italy 3.86%
-------
Austria 3.33%
------
France 2.13%
----
Spain 1.97%
---
2000 Annual Report o Delaware Pooled Trust 49
<PAGE>
Delaware Pooled Trust: The Large-Cap Value Equity Portfolio
Statement of Net Assets
October 31, 2000
Number Market
of Shares Value
--------------------------------------------------------------------------------
COMMON STOCK: 98.91%
Aerospace and Defense: 0.97%
Boeing 11,800 $ 800,187
-----------
800,187
-----------
Automobiles and Automotive Parts: 3.89%
Delphi Automotive Systems 54,200 850,262
Ford Motor 24,300 634,838
General Motors 18,400 1,143,100
TRW 14,100 592,200
-----------
3,220,400
-----------
Banking and Finance: 22.00%
American General 15,700 1,263,850
Bank of America 29,461 1,415,969
Bank of New York 14,900 857,681
Block (H&R) 18,300 653,081
Chase Manhattan 29,300 1,333,150
Chubb 2,300 194,206
Federal Home Loan 26,500 1,590,000
Federal National Mortgage 21,500 1,655,500
FleetBoston Financial 38,100 1,447,800
Hartford Financial Services 13,700 1,019,794
Marsh & McLennan 7,600 993,700
Mellon Financial 35,200 1,698,400
Morgan (J.P.) 4,800 794,400
PNC Financial Group 18,600 1,243,875
U.S. Bancorp 36,400 880,425
Wells Fargo 25,700 1,190,231
-----------
18,232,062
-----------
Cable, Media, and Publishing: 3.96%
Gannett 16,400 951,200
Knight-Ridder 10,800 542,700
McGraw-Hill 27,800 1,784,413
-----------
3,278,313
-----------
Chemicals: 2.40%
duPont (E.I.) deNemours 12,600 571,725
PPG Industries 11,600 517,650
Rohm & Haas 30,000 901,875
-----------
1,991,250
-----------
Computers and Technology: 1.74%
Electronic Data Systems 11,300 530,394
Pitney Bowes 30,700 911,406
-----------
1,441,800
-----------
<PAGE>
Number Market
of Shares Value
--------------------------------------------------------------------------------
Consumer Products: 6.78%
Avon Products 24,100 $1,168,850
Clorox 33,400 1,490,475
Kimberly-Clark 25,600 1,689,600
Minnesota Mining &
Manufacturing 7,000 676,375
Nike 14,900 595,069
-----------
5,620,369
-----------
Electronics and Electrical Equipment: 2.99%
Eaton 11,400 775,913
Emerson Electric 14,700 1,079,531
Rockwell International 15,900 625,069
-----------
2,480,513
-----------
Energy: 8.67%
Baker Hughes 19,800 680,625
Chevron 14,300 1,174,388
Conoco Class B 36,585 994,655
El Paso Energy 27,300 1,711,369
Exxon Mobil 22,404 1,998,157
Sunoco 21,000 628,688
-----------
7,187,882
-----------
Food, Beverage and Tobacco: 9.33%
Anheuser Busch 31,900 1,459,425
Coca-Cola 15,000 905,625
General Mills 34,900 1,457,075
Heinz (H.J.) 31,150 1,306,353
PepsiCo 23,500 1,138,281
Quaker Oats 8,000 652,500
Ralston-Purina Group 33,700 817,225
-----------
7,736,484
-----------
Healthcare and Pharmaceuticals: 7.02%
Abbott Laboratories 26,000 1,373,125
American Home Products 17,900 1,136,650
AstraZeneca ADR 16,600 791,613
Baxter International 14,700 1,208,156
Bristol-Myers Squibb 21,500 1,310,156
-----------
5,819,700
-----------
Industrial Machinery: 2.06%
Caterpillar 18,500 648,656
Deere & Co. 28,800 1,060,200
-----------
1,708,856
-----------
50 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
Number Market
of Shares Value
--------------------------------------------------------------------------------
Insurance: 4.48%
ACE Limited 25,600 $ 1,004,800
Allstate 26,200 1,054,550
Aon 39,875 1,652,320
-----------
3,711,670
-----------
Leisure, Lodging and Entertainment: 2.99%
Carnival Cruise Lines 49,900 1,238,144
Marriott International Class A 17,800 720,900
Viad 24,400 521,550
-----------
2,480,594
-----------
Metals and Mining: 2.09%
Alcoa 60,400 1,732,725
-----------
1,732,725
-----------
Paper and Forest Products: 2.56%
International Paper 29,875 1,094,172
Weyerhaeuser 21,900 1,027,931
-----------
2,122,103
-----------
Retail: 1.22%
*Federated Department Stores 31,000 1,009,438
-----------
1,009,438
-----------
Telecommunications: 8.30%
ALLTEL 23,100 1,488,506
A T & T 29,650 687,509
Cable & Wireless ADR 25,300 1,089,481
SBC Communications 36,452 2,102,825
Verizon Communications 26,090 1,508,328
-----------
6,876,649
-----------
Transportation and Shipping: 0.80%
CSX 26,200 663,188
-----------
663,188
-----------
Utilities: 4.66%
Dominion Resources 20,900 1,244,856
Duke Energy 15,600 1,348,425
PG&E 24,000 646,500
Texas Utilities 16,900 626,356
-----------
3,866,137
-----------
--------------------------------------------------------------------------------
Total Common Stock
(cost $74,452,857) 81,980,320
================================================================================
<PAGE>
Principal Market
Amount Value
--------------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 2.45%
With Chase Manhattan
6.55% 11/1/00 (dated
10/31/00, collateralized
by $716,000 U.S.
Treasury Notes 4.75%
due 2/15/04, market
value $699,673) $682,000 $682,000
With J.P. Morgan Securities
6.52% 11/1/00 (dated
10/31/00, collateralized
by $284,000 U.S.
Treasury Notes 6.25%
due 2/15/03, market
value $288,984 and
$193,000 U.S.
Treasury Notes 5.25%
due 8/15/03, market
value $191,523 and
$193,000 U.S.
Treasury Notes 7.25%
due 5/15/04, market
value $207,294) 674,000 674,000
With PaineWebber
6.54% 11/1/00 (dated
10/31/00, collateralized
by $668,000 U.S.
Treasury Notes 5.875%
due 11/15/05, market
value $688,411) 674,000 674,000
--------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $2,030,000) 2,030,000
================================================================================
--------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 101.36%
(cost $76,482,857) 84,010,320
================================================================================
--------------------------------------------------------------------------------
LIABILITIES NET OF RECEIVABLES
AND OTHER ASSETS: (1.36%) (1,128,476)
================================================================================
--------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
5,393,799 SHARES
OUTSTANDING; EQUIVALENT TO
$15.37 PER SHARE: 100.00% $82,881,844
================================================================================
--------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 2000:
--------------------------------------------------------------------------------
Shares of beneficial interest
(unlimited authorization-no par) $83,198,276
Undistributed net investment income 677,059
Accumulated net realized loss on
investments (8,520,954)
Net unrealized appreciation of
investments 7,527,463
--------------------------------------------------------------------------------
Total net assets $82,881,844
================================================================================
ADR = American Depository Receipt
* Non-income producing security for the year ended October 31, 2000.
See accompanying notes
2000 Annual Report o Delaware Pooled Trust 51
<PAGE>
Delaware Pooled Trust: The Equity Income Portfolio
Statement of Net Assets
October 31, 2000
Number Market
of Shares Value
--------------------------------------------------------------------------------
COMMON STOCK: 94.57%
Aerospace and Defense: 0.70%
Boeing 11,000 $ 745,937
-----------
745,937
-----------
Automobiles and Automotive Parts: 2.88%
Ford Motor 29,500 770,687
General Motors 23,500 1,459,937
TRW 20,200 848,400
-----------
3,079,024
-----------
Banking and Finance: 16.64%
Bank of America 40,300 1,936,918
Bank of New York 18,100 1,041,881
Chase Manhattan 46,700 2,124,850
Citigroup 27,800 1,462,975
Federal Home Loan 18,600 1,116,000
Federal National Mortgage 42,100 3,241,700
FleetBoston Financial 51,800 1,968,400
MBNA 19,300 724,956
Mellon Financial 39,100 1,886,575
Morgan (J.P.) 4,200 695,100
PNC Financial Group 24,000 1,605,000
-----------
17,804,355
-----------
Cable, Media and Publishing: 3.46%
Gannett 27,100 1,571,800
McGraw-Hill 33,100 2,124,606
-----------
3,696,406
-----------
Chemicals: 1.89%
Imperial Chemical ADR 37,000 915,750
Rohm & Haas 36,800 1,106,300
-----------
2,022,050
-----------
Computers and Technology: 3.81%
Electronic Data Systems 34,200 1,605,263
First Data 34,000 1,704,250
Pitney Bowes 25,900 768,906
-----------
4,078,419
-----------
Consumer Products: 5.02%
Avon Products 36,500 1,770,250
Clorox 22,900 1,021,913
Kimberly-Clark 39,100 2,580,600
-----------
5,372,763
-----------
<PAGE>
Number Market
of Shares Value
--------------------------------------------------------------------------------
Electronics and Electrical Equipment: 2.13%
Eaton 11,100 $ 755,494
Emerson Electric 20,800 1,527,500
-----------
2,282,994
-----------
Energy: 9.51%
Baker Hughes 46,100 1,584,687
Chevron 11,700 960,863
Conoco Class B 58,520 1,591,013
El Paso Energy 28,700 1,799,131
Exxon Mobil 27,391 2,442,935
Halliburton 26,900 996,981
Williams 19,200 802,800
-----------
10,178,410
-----------
Food, Beverage and Tobacco: 5.53%
Anheuser Busch 41,600 1,903,200
PepsiCo 43,100 2,087,656
Quaker Oats 12,700 1,035,844
Ralston-Purina Group 36,600 887,550
-----------
5,914,250
-----------
Healthcare and Pharmaceuticals: 10.55%
Abbott Laboratories 31,000 1,637,188
American Home Products 45,000 2,857,500
AstraZeneca ADR 18,500 882,219
Baxter International 27,300 2,243,719
Bristol-Myers Squibb 39,700 2,419,219
Johnson & Johnson 13,500 1,243,688
-----------
11,283,533
-----------
Industrial Machinery: 3.01%
Caterpillar 28,700 1,006,294
Deere 33,600 1,236,900
Dover 23,000 976,063
-----------
3,219,257
-----------
Insurance: 9.82%
ACE 22,900 898,824
Allstate 31,800 1,279,950
American General 30,500 2,455,250
Aon 58,200 2,411,662
Chubb 3,100 261,755
Marsh & McLennan 13,100 1,712,824
XL Capital-Class A 19,300 1,483,688
-----------
10,503,953
-----------
52 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
Number Market
of Shares Value
--------------------------------------------------------------------------------
Leisure, Lodging and Entertainment: 2.09%
Carnival Cruise Lines 57,700 $1,431,681
Marriott International-Class A 19,800 801,900
----------
2,233,581
----------
Metals and Mining: 2.41%
Alcoa 89,900 2,579,006
----------
2,579,006
----------
Paper and Forest Products: 1.16%
International Paper 33,800 1,237,925
----------
1,237,925
----------
Retail: 2.06%
*Federated Department Stores 25,800 840,113
Target 49,200 1,359,150
----------
2,199,263
----------
Telecommunications: 6.36%
ALLTEL 19,600 1,262,975
Cable & Wireless ADR 29,800 1,283,263
SBC Communications 41,629 2,401,473
Verizon Communications 32,234 1,863,528
----------
6,811,239
----------
Textiles, Apparel and Furniture: 0.68%
Nike 18,300 730,856
----------
730,856
----------
Utilities: 4.86%
Dominion Resources 23,300 1,387,806
Duke Energy 14,500 1,253,344
PG&E 31,600 851,225
TXU 46,100 1,708,581
----------
5,200,956
----------
--------------------------------------------------------------------------------
Total Common Stock
(cost $91,135,386) 101,174,177
================================================================================
Principal
Amount
--------------------------------------------------------------------------------
CORPORATE BONDS: 2.42%
Automobiles and Automotive Parts: 0.13%
Gentek
11.00% 8/1/09 $140,000 139,300
----------
139,300
----------
<PAGE>
Principal Market
Amount Value
--------------------------------------------------------------------------------
Banking, Finance and Insurance: 0.05%
Sovereign Bancorp
10.50% 11/15/06 $ 50,000 $ 51,000
--------
51,000
--------
Cable, Media and Publishing: 0.39%
Adelphia Communications
10.50% 7/15/04 40,000 39,850
American Lawyer Media
9.75% 12/15/07 100,000 91,000
American Media Operations
10.25% 5/1/09 45,000 43,874
Charter Communications
8.625% 4/1/09 100,000 90,500
Classic Cable
10.50% 3/1/10 100,000 83,000
Sinclair Broadcast Group
10.00% 9/30/05 50,000 47,624
Telewest Communications
9.625% 10/1/06 20,000 16,600
--------
412,448
--------
Chemicals: 0.20%
Avecia Group
11.00% 7/1/09 55,000 53,075
Huntsman
9.50% 7/1/07 200,000 117,000
Lyondell Chemical
9.875% 5/1/07 40,000 39,100
--------
209,175
--------
Computers and Technology: 0.05%
Exodus Communications
10.75% 12/15/09 60,000 54,600
--------
54,600
--------
Consumer Products: 0.17%
Avis Rent A Car
11.00% 5/1/09 75,000 80,250
Buhrman US
12.25% 11/1/09 100,000 102,500
--------
182,750
--------
Energy: 0.18%
Chesapeake Energy
9.625% 5/1/05 65,000 65,569
Frontier Oil
11.75% 11/15/09 80,000 81,600
Nuevo Energy
9.50% 6/1/08 50,000 50,187
--------
197,356
--------
2000 Annual Report o Delaware Pooled Trust 53
<PAGE>
Principal Market
Amount Value
--------------------------------------------------------------------------------
Healthcare and Pharmaceuticals: 0.12%
Oxford Health Plans
11.00% 5/15/05 $40,000 $ 43,800
Tenet Healthcare
7.625% 6/1/08 85,000 81,175
--------
124,975
--------
Industrial Machinery: 0.26%
Azurix
10.75% 2/15/10 50,000 46,250
J Crew Operating
10.375% 10/15/07 50,000 43,750
National Equipment
10.00% 11/30/04 25,000 15,125
Neff
10.25% 6/1/08 400,000 182,000
--------
287,125
--------
Leisure, Lodging and Entertainment: 0.08%
Bally Total Fitness
9.875% 10/15/07 50,000 46,750
Hollywood Casino
11.25% 5/1/07 5,000 5,163
Venetian Casino
12.25% 11/15/04 30,000 30,525
--------
82,438
--------
Metals and Mining: 0.14%
Golden Northwest
12.00% 12/15/06 50,000 48,750
P and L Coal Holdings
8.875% 5/15/08 100,000 99,500
--------
148,250
--------
Telecommunications: 0.39%
Global Crossing
9.625% 5/15/08 25,000 24,000
Intermedia Communications
9.50% 3/1/09 100,000 96,750
Level 3 Communications
9.125% 5/1/08 200,000 162,500
Nextel Communications
9.375% 11/15/09 50,000 48,376
12.00% 11/1/08 85,000 91,164
--------
422,790
--------
Transportation and Shipping: 0.09%
Atlas Air
9.375% 11/15/06 100,000 98,500
--------
98,500
--------
<PAGE>
Principal Market
Amount Value
--------------------------------------------------------------------------------
Utilities: 0.08%
AES
10.25% 7/15/06 $ 85,000 $ 86,914
----------
86,914
----------
Miscellaneous: 0.09%
Pierce Leahy
8.125% 5/15/08 100,000 93,500
----------
93,500
----------
--------------------------------------------------------------------------------
Total Corporate Bonds
(cost $2,953,448) 2,591,121
================================================================================
REPURCHASE AGREEMENTS: 7.17%
With Chase Manhattan
6.55% 11/1/00 (dated
10/31/00, collateralized
by $2,706,000 U.S.
Treasury Notes 4.75%
due 2/15/04, market
value $2,643,592) 2,577,000 2,577,000
With J.P. Morgan Securities
6.52% 11/1/00 (dated
10/31/00, collateralized
by $1,071,000 U.S.
Treasury Notes 6.25%
due 2/15/03, market
value $1,091,874 and
$728,000 U.S.
Treasury Notes 5.25%
due 8/15/03, market
value $723,638 and
$728,000 U.S.
Treasury Notes 7.25%
due 5/15/04, market
value $783,224) 2,547,000 2,547,000
With PaineWebber
6.54% 11/1/00 (dated
10/31/00, collateralized
by $2,523,000 U.S.
Treasury Notes 5.875%
due 11/15/05, market
value $2,601,039) 2,546,000 2,546,000
--------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $7,670,000) 7,670,000
================================================================================
54 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
--------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 104.16%
(COST $101,758,834) $111,435,298
================================================================================
--------------------------------------------------------------------------------
LIABILITIES NET OF RECEIVABLES
AND OTHER ASSETS: (4.16%) (4,455,775)
================================================================================
--------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
12,959,903 SHARES
OUTSTANDING; EQUIVALENT TO
$8.25 PER SHARE: 100.00% $106,979,523
================================================================================
--------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 2000:
--------------------------------------------------------------------------------
Shares of beneficial interest
(unlimited authorization-no par) $115,582,447
Undistributed net investment income 2,437,903
Accumulated net realized loss on
investments (20,717,291)
Net unrealized appreciation of
investments 9,676,464
--------------------------------------------------------------------------------
Total net assets $106,979,523
================================================================================
ADR = American Depository Receipt
* Non-income producing security for the year ended October 31, 2000.
See accompanying notes
<PAGE>
Delaware Pooled Trust:
The Core Equity Portfolio
Statement of Net Assets
October 31, 2000
Number Market
of Shares Value
--------------------------------------------------------------------------------
COMMON STOCK: 95.71%
Aerospace and Defense: 1.09%
Honeywell International 412 $ 22,171
--------
22,171
--------
Banking, Finance, and Insurance: 20.85%
American International Group 287 28,126
Axa Financial 700 37,844
Capital One Financial 700 44,188
Chase Manhattan 950 43,225
Citigroup 666 35,048
Dime Bancorp 700 17,106
Federal Home Loan 1,400 84,000
FleetBoston Financial 1,300 49,400
MBNA 800 30,050
Merrill Lynch & Company 200 14,000
Morgan (J.P.) 100 16,550
Morgan Stanley Dean Witter 300 24,094
--------
423,631
--------
Chemicals: 1.20%
Dow Chemical 800 24,500
--------
24,500
--------
Computers and Technology: 19.81%
*America Online 700 35,301
*Cisco Systems 800 43,100
Compaq Computer 1,400 42,574
Electronic Data Systems 500 23,469
*EMC 400 35,625
First Data 800 40,100
*Gateway 600 30,966
Hewlett-Packard 800 37,150
International Business Machines 300 29,550
*Microsoft 700 48,213
*Oracle 1,100 36,300
--------
402,348
--------
Consumer Products: 4.42%
Kimberly-Clark 500 33,000
Tyco International 1,000 56,688
--------
89,688
--------
Electronics and Electrical Equipment: 4.74%
General Electric 1,100 60,294
Intel 800 36,000
--------
96,294
--------
2000 Annual Report o Delaware Pooled Trust 55
<PAGE>
Number Market
of Shares Value
--------------------------------------------------------------------------------
Energy: 9.15%
Amerada Hess 400 $ 24,800
Coastal 600 45,263
Exxon Mobil 600 53,513
Halliburton 900 33,356
Sunoco 600 17,963
*Westport Resources 700 11,069
--------
185,964
--------
Food, Beverage, and Tobacco: 2.55%
Anheuser Busch 100 4,575
Coca-Cola 400 24,150
*Suiza Foods 500 23,156
--------
51,881
--------
Healthcare and Pharmaceuticals: 12.59%
American Home Products 600 38,100
*Amgen 200 11,588
Baxter International 200 16,438
Biomet 500 18,094
Bristol-Myers Squibb 300 18,281
Johnson & Johnson 700 64,483
Medtronic 500 27,156
Merck & Company 300 26,981
Pfizer 800 34,550
--------
255,671
--------
Leisure, Lodging, and Entertainment: 1.47%
Viad 1,400 29,925
--------
29,925
--------
Retail: 2.90%
*Kroger 1,200 27,075
Wal-Mart Stores 700 31,763
--------
58,838
--------
Telecommunications: 10.00%
ALLTEL 300 19,331
BellSouth 500 24,156
Lucent Technologies 700 16,319
*McLeodUSA Class A 1,300 25,025
Nortel Networks 600 27,300
SBC Communications 1,000 57,688
*WorldCom 1,400 33,250
--------
203,069
--------
Transportation and Shipping: 2.73%
Tidewater 1,200 55,425
--------
55,425
--------
<PAGE>
Number Market
of Shares Value
--------------------------------------------------------------------------------
Utilities: 2.21%
*AES 300 $ 16,950
*Southern Energy 900 24,525
*TNPC 200 3,325
----------
44,800
----------
--------------------------------------------------------------------------------
Total Common Stock
(cost $1,866,261) 1,944,205
================================================================================
Principal
Amount
--------------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 6.89%
With Chase Manhattan
6.55% 11/1/00 (dated
10/31/00, collateralized
by $49,000 U.S.
Treasury Notes 4.75%
due 2/15/04, market
value $48,253) $47,000 47,000
With J.P. Morgan Securities
6.52% 11/1/00 (dated
10/31/00, collateralized
by $20,000 U.S.
Treasury Notes 6.25%
due 2/15/03, market
value $19,930 and
$13,000 U.S.
Treasury Notes 5.25%
due 8/15/03, market
value $13,209 and
$13,000 U.S.
Treasury Notes 7.25%
due 5/15/04, market
value $14,296) 46,500 46,500
With PaineWebber
6.54% 11/1/00 (dated
10/31/00, collateralized
by $46,000 U.S.
Treasury Notes 5.875%
due 11/15/05, market
value $47,477) 46,500 46,500
--------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $140,000) 140,000
================================================================================
56 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
--------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 102.60%
(COST $2,006,261) $2,084,205
================================================================================
--------------------------------------------------------------------------------
LIABILITIES NET OF RECEIVABLES
AND OTHER ASSETS: (2.60%) (52,898)
================================================================================
--------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
237,865 SHARES
OUTSTANDING; EQUIVALENT TO
$8.54 PER SHARE: 100.00% $2,031,307
================================================================================
--------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 2000:
================================================================================
Shares of beneficial interest
(unlimited authorization-no par) $2,073,448
Undistributed net investment income 13,414
Accumulated net realized loss on
investments (133,499)
Net unrealized appreciation of
investments 77,944
--------------------------------------------------------------------------------
Total net assets $2,031,307
================================================================================
* Non-income producing security for the year ended October 31, 2000.
See accompanying notes
<PAGE>
Delaware Pooled Trust:
The Select Equity Portfolio
Statement of Net Assets
October 31, 2000
Number Market
of Shares Value
--------------------------------------------------------------------------------
COMMON STOCK: 100.48%
Banking, Finance, and Insurance: 19.11%
Chase Manhattan 1,800 $ 81,900
Citigroup 1,500 78,937
Federal Home Loan 1,400 84,000
Morgan Stanley Dean Witter 900 72,281
Stilwell Financial 1,700 76,181
--------
393,299
--------
Cable, Media, and Publishing: 7.10%
*AT&T Liberty Media Class A 3,900 70,200
Time Warner 1,000 75,910
--------
146,110
--------
Computers and Technology: 12.27%
Intel 1,900 85,500
*Microsoft 1,300 89,537
Nortel Networks 1,700 77,350
--------
252,387
--------
Consumer Products: 3.76%
Minnesota Mining &
Manufacturing 800 77,300
--------
77,300
--------
Electronics and Electrical Equipment: 7.92%
General Electric 1,400 76,737
Symbol Technologies 1,900 86,331
--------
163,068
--------
Energy: 7.33%
Baker Hughes 2,200 75,625
Williams 1,800 75,263
--------
150,888
--------
Food, Beverage, and Tobacco: 3.78%
Anheuser Busch 1,700 77,775
--------
77,775
--------
Healthcare and Pharmaceuticals: 8.22%
Bristol-Myers Squibb 1,300 79,219
Merck & Company 1,000 89,938
--------
169,157
--------
2000 Annual Report o Delaware Pooled Trust 57
<PAGE>
Number Market
of Shares Value
--------------------------------------------------------------------------------
Industrial Machinery: 3.85%
Ingersoll-Rand 2,100 $ 79,275
----------
79,275
----------
Leisure, Lodging, and Entertainment: 3.83%
Walt Disney 2,200 78,788
----------
78,788
----------
Metals and Mining: 3.90%
Alcoa 2,800 80,325
----------
80,325
----------
Telecommunications: 15.70%
AT&T 3,200 74,200
BellSouth 1,700 82,131
*Sprint PCS 2,100 80,063
Verizon Communications 1,500 86,719
----------
323,113
----------
Utilities: 3.71%
*Southern Energy 2,800 76,300
----------
76,300
----------
--------------------------------------------------------------------------------
Total Common Stock
(cost $2,003,915) 2,067,785
================================================================================
Principal
Amount
--------------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 0.05%
With Chase Manhattan
6.55% 11/1/00 (dated
10/31/00, collateralized
by $350 U.S. Treasury
Notes 4.75% due 2/15/04,
market value $345) $338 338
With J.P. Morgan Securities
6.52% 11/1/00 (dated
10/31/00, collateralized
by $140 U.S. Treasury
Notes 6.25% due 2/15/03,
market value $142
and $90 U.S. Treasury
Notes 5.25% due 8/15/03,
market value $94 and
$90 U.S. Treasury Notes
7.25% due 5/15/04,
market value $102) 331 331
<PAGE>
Principal Market
Amount Value
--------------------------------------------------------------------------------
With PaineWebber
6.54% 11/1/00 (dated
10/31/00, collateralized
by $330 U.S. Treasury
Notes 5.875% due 11/15/05,
market value $339) $331 $ 331
--------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $1,000) 1,000
================================================================================
--------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 100.53%
(COST $2,004,915) 2,068,785
================================================================================
--------------------------------------------------------------------------------
LIABILITIES NET OF RECEIVABLES
AND OTHER ASSETS (0.53%) (10,954)
================================================================================
--------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
235,295 SHARES
OUTSTANDING; EQUIVALENT TO
$8.75 PER SHARE: 100.00% $2,057,831
================================================================================
--------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 2000:
--------------------------------------------------------------------------------
Shares of beneficial interest
(unlimited authorization-no par) $1,804,805
Undistributed net investment income 79,468
Accumulated net realized gain on
investments 109,688
Net unrealized appreciation of
investments 63,870
--------------------------------------------------------------------------------
Total net assets $2,057,831
================================================================================
* Non-income producing security for the year ended October 31, 2000.
See accompanying notes
58 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
Delaware Pooled Trust: The All-Cap Growth Equity
Statement of Net Assets
October 31, 2000
Number Market
of Shares Value
-----------------------------------------------------------------------------
COMMON STOCK: 95.84%
Banking, Finance and Insurance: 13.54%
Capital One Financial 1,800 $ 113,625
Federal Home Loan 4,300 258,000
Federal National Mortgage 4,000 308,000
Lehman Brothers Holdings 2,300 148,350
Merrill Lynch & Company 1,600 112,000
Morgan Stanley Dean Witter 1,600 128,500
Providian Financial 2,300 239,200
State Street Bank 1,200 149,688
Washington Mutual 2,600 114,400
Zions Bancorp 3,600 206,775
----------
1,778,538
----------
Business Services: 0.58%
*Robert Half International 2,500 76,250
----------
76,250
----------
Cable, Media and Publishing: 2.83%
*AT&T-Liberty Media Class A 7,100 127,800
*USA Networks 5,900 119,475
*Viacom Class B 2,200 125,125
----------
372,400
----------
Computers and Technology: 2.73%
Linear Technology 2,300 148,494
*Sun Microsystems 1,900 210,663
----------
359,157
----------
Consumer Services: 3.68%
*America Online 9,600 484,128
----------
484,128
----------
Electronics and Electrical Equipment: 10.03%
*Altera 3,800 155,562
*JDS Uniphase 4,420 359,677
*Maxim Integrated Products 2,500 165,781
*Micrel 6,100 276,025
*PMC-Sierra 1,400 237,300
*Xilinx 1,700 123,144
----------
1,317,489
----------
Energy: 0.65%
*AES 1,500 84,750
----------
84,750
----------
<PAGE>
Number Market
of Shares Value
-----------------------------------------------------------------------------
Healthcare and Pharmaceuticals: 7.13%
*Genentech 5,400 $ 445,500
*Pain Therapeutics 3,900 83,606
*Sepracor 2,300 156,688
*Serono ADR 2,100 47,513
*United Therapeutics 3,800 203,300
----------
936,607
----------
Leisure, Lodging and Entertainment: 3.68%
*Brinker International 10,500 412,125
*Outback Steakhouse 2,500 71,250
----------
483,375
----------
Retail: 11.55%
*Bed Bath & Beyond 11,900 307,169
Home Depot 1,500 64,500
*Kohl's 7,200 390,150
*Krispy Kreme Doughnuts 800 78,850
Limited 9,800 247,450
*Starbucks 4,200 187,688
Walgreen 5,300 241,813
----------
1,517,620
----------
Technology/Software: 22.30%
*Ariba 1,500 189,562
*Docent 7,600 195,700
*Gemstar-TV Guide International 3,600 246,825
*i2 Technologies 3,100 527,000
*NetIQ 2,800 241,150
*Network Appliance 3,900 464,100
*Peregrine Systems 11,200 268,800
*Quest Software 4,300 187,856
*VeriSign 1,300 171,600
*VERITAS Software 3,100 437,148
----------
2,929,741
----------
Telecommunications: 12.16%
*Applied Micro Circuits 5,200 397,150
*Brocade Communications
Systems 1,200 272,850
*Comcast-Special Class A 1,200 48,900
*Extreme Networks 5,600 464,450
*Foundry Networks 1,900 126,231
*Juniper Networks 1,100 214,500
*XO Communications 2,200 74,216
----------
1,598,297
----------
2000 Annual Report o Delaware Pooled Trust 59
<PAGE>
Number Market
of Shares Value
-----------------------------------------------------------------------------
Transportation and Shipping: 1.07%
Expeditors International 2,700 $ 140,062
-----------
140,062
-----------
Utilities: 3.91%
Duke Energy 3,100 267,956
Dynegy 5,300 245,456
-----------
513,412
-----------
-----------------------------------------------------------------------------
Total Common Stock
(cost $11,258,226) 12,591,826
=============================================================================
Principal
Amount
-----------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 6.57%
With Chase Manhattan
6.55% 11/1/00 (dated
10/31/00, collateralized
by $305,000 U.S.
Treasury Notes 4.75%
due 2/15/04, market
value $297,792) $290,000 290,000
With J.P. Morgan Securities
6.52% 11/1/00 (dated
10/31/00, collateralized
by $121,000 U.S.
Treasury Notes 6.25%
due 2/15/03, market
value $122,996 and
$82,000 U.S.
Treasury Notes 5.25%
due 8/15/03, market
value $81,516 and
and $82,000 U.S.
Treasury Notes 7.25%
due 5/15/04, market
value $88,228) 287,000 287,000
With PaineWebber
6.54% 11/1/00 (dated
10/31/00, collateralized
by $284,000 U.S.
Treasury Notes 5.875%
due 11/15/05, market
value $292,998) 287,000 287,000
-----------------------------------------------------------------------------
Total Repurchase Agreements
(cost $864,000) 864,000
=============================================================================
<PAGE>
TOTAL MARKET VALUE OF SECURITIES: 102.41%
(COST $12,122,226) $13,455,826
==============================================================================
LIABILITIES NET OF ASSETS
AND OTHER RECEIVABLES: (2.41%) (317,163)
==============================================================================
------------------------------------------------------------------------------
NET ASSETS APPLICABLE
TO 1,498,152 SHARES
OUTSTANDING; EQUIVALENT TO
$8.77 PER SHARE: 100.00% $13,138,663
==============================================================================
------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS AT OCTOBER 31, 2000:
------------------------------------------------------------------------------
Shares of beneficial interest
(unlimited authorization-no par) $12,716,390
Accumulated net realized loss on
investments (911,327)
Net unrealized appreciation of
investments 1,333,600
------------------------------------------------------------------------------
Total net assets $13,138,663
==============================================================================
* Non-income producing security for the period ended October 31, 2000.
See accompanying notes
60 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
Delaware Pooled Trust: The Mid-Cap Growth Equity Portfolio
Statement of Net Assets
October 31, 2000
Number Market
of Shares Value
-----------------------------------------------------------------------------
COMMON STOCK: 96.06%
Banking, Finance and Insurance: 11.29%
Alliance Capital Management 700 $ 33,600
*Ambac Financial Group 1,300 103,756
Banknorth Group 2,500 45,312
Capital One Financial 1,500 94,687
*Compucredit 900 27,788
Heller Financial 4,000 117,000
*John Hancock Financial Services 1,500 47,438
Lehman Brothers Holdings 1,000 64,500
*Silicon Valley Bancshares 1,100 50,875
Synovus Financial 1,600 34,500
Zions Bancorp 2,000 114,875
----------
734,331
----------
Business Services: 5.81%
Cintas 1,950 90,431
*Convergys 3,400 148,113
*Fiserv 1,900 99,631
*Robert Half International 1,300 39,650
----------
377,825
----------
Cable, Media and Publishing: 3.04%
*Clear Channel Communications 1,430 85,889
*Hispanic Broadcasting 1,900 59,375
*Lamar Advertising 1,100 52,800
----------
198,064
----------
Computers and Technology: 20.98%
*BroadVision 3,600 107,100
*Commerce One 1,300 83,444
*i2 Technologies 1,080 183,600
*Network Appliance 2,200 261,800
*Peregrine Systems 4,700 112,800
PerkinElmer 1,800 215,100
*SunGard Data Systems 2,600 132,925
*Veritas Software 1,900 267,930
----------
1,364,699
----------
Consumer Products: 2.00%
*Gemstar International Group
Limited 1,900 130,269
----------
130,269
----------
<PAGE>
Number Market
of Shares Value
-----------------------------------------------------------------------------
Electronics and Electrical Equipment: 15.57%
*Altera 2,600 $ 106,437
*Finisar 2,100 60,506
*JDS Uniphase 2,420 196,928
*ONI Systems 1,600 129,700
*PMC-Sierra 1,200 203,400
Tektronix 2,100 149,625
*Waters 200 14,513
*Xilinx 2,100 152,119
----------
1,013,228
----------
Healthcare and Pharmaceuticals: 5.96%
*Abgenix 644 45,080
*Celera Genomics 400 27,000
*Genentech 700 57,750
*Invitrogen 1,300 98,881
*Millenium Pharmaceuticals 600 43,538
*Sepracor 1,000 68,125
*United Therapeutics 1,000 47,267
----------
387,641
----------
Leisure, Lodging and Entertainment: 5.83%
*Brinker International 4,700 184,475
Darden Restaurants 3,300 74,250
*Jack in the Box 2,700 66,150
*Outback Steakhouse 1,900 54,150
----------
379,025
----------
Retail: 10.98%
*Bed Bath & Beyond 6,700 172,944
*Best Buy 700 35,131
*Dollar Tree Stores 2,900 113,462
Intimate Brands 4,800 114,600
*Kohl's 3,900 211,331
*Starbucks 1,500 67,031
----------
714,499
----------
Telecommunications: 13.39%
*American Tower Class A 3,300 135,094
*Ciena 1,600 168,200
*Extreme Networks 2,900 240,519
*Foundry Networks 1,300 86,369
*McLeodUSA Class A 8,500 163,625
*XO Communications 2,300 77,589
----------
871,396
----------
2000 Annual Report o Delaware Pooled Trust 61
<PAGE>
Number Market
of Shares Value
-----------------------------------------------------------------------------
Utilities: 1.21%
*Southern Energy 2,900 $ 79,025
----------
79,025
----------
-----------------------------------------------------------------------------
Total Common Stock
(cost $4,062,779) 6,250,002
=============================================================================
Principal
Amount
-----------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 6.87%
With Chase Manhattan
6.55% 11/1/00 (dated
10/31/00, collateralized
by $158,000 U.S.
Treasury Notes 4.75%
due 2/15/04, market
value $154,066) $150,000 150,000
With J.P. Morgan Securities
6.52% 11/1/00 (dated
10/31/00, collateralized
by $62,000 U.S.
Treasury Notes 6.25%
due 2/15/03, market
value $63,633 and
$42,000 U.S.
Treasury Notes 5.25%
due 8/15/03, market
value $42,173 and
$42,000 U.S.
Treasury Notes 7.25%
due 5/15/04, market
value $45,646) 148,000 148,000
With PaineWebber
6.54% 11/1/00 (dated
10/31/00, collateralized
by $147,000 U.S.
Treasury Notes 5.875%
due 11/15/05, market
value $151,586) 149,000 149,000
-----------------------------------------------------------------------------
Total Repurchase Agreements
(cost $447,000) 447,000
=============================================================================
<PAGE>
------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 102.93%
(COST $4,509,779) $6,697,002
==============================================================================
LIABILITIES NET OF RECEIVABLES
AND OTHER ASSETS: (2.93%) (190,673)
==============================================================================
------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
525,092 SHARES
OUTSTANDING; EQUIVALENT TO
$12.39 PER SHARE: 100.00% $6,506,329
==============================================================================
------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 2000:
------------------------------------------------------------------------------
Shares of beneficial interest
(unlimited authorization-no par) $1,057,230
Accumulated net realized gain on
investments 3,261,876
Net unrealized appreciation of
investments 2,187,223
------------------------------------------------------------------------------
Total net assets $6,506,329
==============================================================================
* Non-income producing security for the year ended October 31, 2000.
See accompanying notes
62 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
Delaware Pooled Trust: The Small-Cap Value Equity Portfolio
Statement of Net Assets
October 31, 2000
Number Market
of Shares Value
-----------------------------------------------------------------------------
COMMON STOCK: 95.59%
Automobiles and Automotive Parts: 2.62%
Borg-Warner Automotive 700 $ 26,425
CLARCOR 1,000 19,125
Cummins Engine 400 13,600
--------
59,150
--------
Banking, Finance and Insurance: 20.58%
Associated Banc-Corp 980 23,581
*Avis Rent-A-Car 900 26,888
Colonial BancGroup 3,000 26,438
Commercial Federal 1,300 22,750
Compass Bancshares 1,300 23,644
Cullen/Frost Bankers 1,300 43,306
Everest Re Group 1,100 64,488
*Financial Federal 1,300 27,544
Hudson United Bancorp 1,400 31,325
Liberty Financial 1,300 35,100
PartnerRe 700 38,150
PMI Group 600 44,325
Presidential Life 1,900 27,669
Westamerica Bancorporation 800 28,750
--------
463,958
--------
Buildings and Materials: 4.25%
D.R. Horton 2,380 44,030
*Griffon 3,200 24,400
Kaufman & Broad Home 700 20,825
*Toll Brothers 200 6,500
--------
95,755
--------
Cable, Media and Publishing: 1.02%
Belo (A.H.) Class A 1,200 23,025
--------
23,025
--------
Chemicals: 4.19%
*Cytec Industries 700 24,238
OM Group 900 41,625
*Scotts 800 28,600
--------
94,463
--------
Computers and Technology: 4.47%
*Black Box 300 19,763
*Mercury Computer Systems 900 27,900
*Parametric Technology 1,200 14,775
*Synopsys 1,100 38,363
--------
100,801
--------
<PAGE>
Number Market
of Shares Value
-----------------------------------------------------------------------------
Electronics and Electrical Equipment: 4.11%
*Galileo Technology 1,500 $ 40,688
*International Rectifier 600 26,775
*Plexus 400 25,225
--------
92,688
--------
Energy: 9.33%
Helmerich & Payne 1,400 44,013
*Louis Dreyfus Natural Gas 700 22,444
*Marine Drilling 800 19,100
NICOR 600 21,188
NUI 900 28,069
*Ocean Energy 2,400 33,300
Valero Energy 800 26,450
*Westport Resources 1,000 15,813
--------
210,377
--------
Engineering and Construction: 2.39%
*Jacobs Engineering Group 1,300 53,788
--------
53,788
--------
Food, Beverage and Tobacco: 4.20%
*Constellation Brands 600 29,250
*Suiza Foods 1,200 55,575
Universal Foods 500 9,875
--------
94,700
--------
Healthcare and Pharmaceuticals: 7.61%
Alpharma-Class A 200 7,763
*AmeriSource Health Class A 500 21,719
*Community Health Systems 800 22,550
Cooper Companies 500 17,875
Invacare 1,300 37,050
*Lifepoint Hospitals 300 11,625
*STERIS 600 9,000
*Varian Medical Systems 900 43,988
--------
171,570
--------
Industrial Machinery: 1.44%
CIRCOR International 550 6,084
Kaydon 1,200 26,325
--------
32,409
--------
Metals and Mining: 0.31%
*Mueller Industries 300 6,994
--------
6,994
--------
2000 Annual Report o Delaware Pooled Trust 63
<PAGE>
Number Market
of Shares Value
-----------------------------------------------------------------------------
Packaging and Containers: 1.07%
*PACTIV 2,300 $ 24,150
----------
24,150
----------
Real Estate: 7.71%
Cabot Industrial Trust 2,200 41,525
Kilroy Realty 1,200 31,275
Pan Pacific Retail Properties 2,000 40,875
Prentiss Properties Trust 1,300 32,988
Reckson Associates Realty 1,200 27,150
----------
173,813
----------
Retail: 3.99%
*Barnes & Noble 1,400 26,425
*BJ's Wholesale Club 1,000 32,938
*Zale 900 30,488
----------
89,851
----------
Telecommunications: 2.75%
*Adtran 500 19,000
*Andrew 300 7,894
*ANTEC 500 6,094
*Brightpoint 2,800 18,638
*Ditech Communications 300 10,331
----------
61,957
----------
Textiles, Apparel and Furniture: 3.00%
*Furniture Brands International 1,400 23,625
*Quicksilver 1,000 19,125
Wolverine World Wide 2,300 24,869
----------
67,619
----------
Transportation and Shipping: 4.82%
Alexander & Baldwin 1,200 29,925
*Mesaba Holdings 2,200 23,788
Tidewater 800 36,950
USFreightways 700 18,025
----------
108,688
----------
Utilities: 2.82%
California Water Service Group 800 21,550
Conectiv 1,600 28,700
*TNPC 800 13,300
----------
63,550
----------
Miscellaneous: 2.91%
Federal Signal 2,200 51,425
Smith (A.O.) 1,000 14,125
----------
65,550
----------
-----------------------------------------------------------------------------
Total Common Stock
(cost $1,936,931) 2,154,856
=============================================================================
<PAGE>
Principal Market
Amount Value
------------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 4.75%
With Chase Manhattan
6.55% 11/1/00 (dated
10/31/00, collateralized
by $38,000 U.S.
Treasury Notes 4.75%
due 2/15/04, market
value $36,879) $36,000 $ 36,000
With J.P. Morgan Securities
6.52% 11/1/00 (dated
10/31/00, collateralized
by $15,000 U.S.
Treasury Notes 6.25%
due 2/15/03, market
value $15,232 and
$10,000 U.S.
Treasury Notes 5.25%
due 8/15/03, market
value $10,095 and
$10,000 U.S.
Treasury Notes 7.25%
due 5/15/04, market
value $10,926) 35,500 35,500
With PaineWebber
6.54% 11/1/00 (dated
10/31/00, collateralized
by $35,000 U.S.
Treasury Notes 5.875%
due 11/15/05, market
value $36,286) 35,500 35,500
------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $107,000) 107,000
==============================================================================
TOTAL MARKET VALUE OF SECURITIES: 100.34%
(COST $2,043,931) 2,261,856
==============================================================================
------------------------------------------------------------------------------
LIABILITIES NET OF RECEIVABLES
AND OTHER ASSETS: (0.34%) (7,768)
==============================================================================
------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
244,155 SHARES
OUTSTANDING; EQUIVALENT TO
$9.23 PER SHARE: 100.00% $2,254,088
==============================================================================
COMPONENTS OF NET ASSETS AT OCTOBER 31, 2000:
------------------------------------------------------------------------------
Shares of beneficial interest
(unlimited authorization-no par) $2,071,775
Undistributed net investment income 20,599
Accumulated net realized loss on
investments (56,211)
Net unrealized appreciation of
investments 217,925
------------------------------------------------------------------------------
Total net assets $2,254,088
==============================================================================
* Non-income producing security for the year ended October 31, 2000.
See accompanying notes
64 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
Delaware Pooled Trust: The Small-Cap Growth Equity Portfolio
Statement of Net Assets
October 31, 2000
Number Market
of Shares Value
--------------------------------------------------------------------------------
COMMON STOCK: 96.20%
Banking, Finance, and Insurance: 6.26%
*Americredit 5,100 $ 137,062
Dime Bancorp 19,300 471,644
Doral Financial 13,300 237,737
Everest Re Group 1,700 99,663
GATX 3,400 143,012
Metris 10,650 344,794
PartnerRe 3,900 212,550
Radian Group 5,200 368,549
Sovereign Bancorp 10,800 89,775
Webster Financial 10,400 253,500
----------
2,358,286
----------
Basic Industry/Capital Goods: 2.46%
*MSC Industrial Direct-Class A 10,100 150,238
*Mettler-Toledo International 16,600 775,013
----------
925,251
----------
Buildings and Materials: 0.43%
Kaufman & Broad Home 5,400 160,650
----------
160,650
----------
Business Services: 5.72%
*BISYS Group 13,000 612,625
*Corporate Executive Board 12,900 595,013
*Digital Insight 6,100 117,806
*eLoyalty 5,600 53,900
*eSpeed 8,800 184,800
*Hall, Kinion & Associates 6,000 158,625
*Heidrick & Struggles 2,100 129,806
True North Communications 6,500 244,969
*Watson Wyatt & Company 3,300 57,131
----------
2,154,675
----------
Cable, Media, and Publishing: 1.42%
*Getty Images 16,800 533,400
----------
533,400
----------
Computers and Technology: 12.59%
*CoorsTek 4,900 143,325
*Micrel 30,000 1,357,500
*Network Appliance 15,700 1,868,300
*PMC-Sierra 8,100 1,372,950
----------
4,742,075
----------
<PAGE>
Number Market
of Shares Value
--------------------------------------------------------------------------------
Consumer Services: 0.63%
*Bright Horizons Family Solutions 9,500 $ 237,500
----------
237,500
----------
Food, Beverage, and Tobacco: 0.49%
*American Italian Pasta Class A 9,200 184,575
----------
184,575
----------
Healthcare and Pharmaceuticals: 9.83%
*CIMA Labs 8,600 473,000
*CIMA Labs Restricted 1,100 60,500
*Cubist Pharmaceuticals 7,100 305,078
*Cubist Pharmaceuticals
Restricted 800 34,375
*Esperion Therapeutics 7,900 109,119
*Exelixis 3,200 70,600
*Inhale Therapeutic 11,400 567,150
*Inspire Pharmaceticals 11,100 217,837
*Intrabiotics Pharmaceuticals 16,900 251,387
*Neurocrine Biosciences 9,500 368,125
*Pharmacopeia 3,500 63,875
*Pharmacopeia Restricted 2,100 38,325
*Trimeris 9,200 650,900
*United Therapeutics 9,200 492,200
----------
3,702,471
----------
Leisure, Lodging, and Entertainment: 7.74%
*California Pizza Kitchen 2,400 84,000
*CEC Entertainment 23,750 757,031
*Extended Stay America 20,200 248,712
Morrison Management Special 3,540 118,590
Ruby Tuesday 17,200 233,275
*Sonic 13,800 503,700
*The Cheesecake Factory 18,000 797,625
*Westwood One 9,000 170,438
----------
2,913,371
----------
Retail: 10.42%
*American Eagle Outfitters 3,400 117,087
*Cost Plus 15,075 422,100
*Dollar Tree Stores 29,100 1,138,537
*Duane Reade 13,300 388,194
*Hot Topic 5,900 202,075
*Linens'n Things 21,300 654,975
*TOO 26,200 600,963
*Tweeter Home Entertainment
Group 16,500 397,031
----------
3,920,962
----------
2000 Annual Report o Delaware Pooled Trust 65
<PAGE>
Number Market
of Shares Value
--------------------------------------------------------------------------------
Technology/Software: 21.04%
*Broadbase Software 22,900 $ 246,175
*Carescience 10,000 29,375
*Extensity 6,400 81,600
*Gemstar-TV Guide International 9,700 665,056
Henry (Jack) & Associates 21,700 1,193,500
*I2 Technologies 6,655 1,131,350
*Manugistics Group 3,800 432,963
*NetIQ 10,600 912,925
*New Era of Networks 23,100 359,494
*Onyx Software 11,500 182,563
*Peregrine Systems 17,700 424,800
*RSA Security 4,100 237,800
*VERITAS Software 11,950 1,685,137
*Webex Communications 7,500 337,969
----------
7,920,707
----------
Telecommunications: 17.17%
*Applied Micro Circuits 20,200 1,542,775
*Dycom 22,300 839,037
*Leap Wireless 7,500 373,125
*SBA Communications 16,800 842,100
*Tekelec 23,500 865,094
*Tut Systems 11,000 365,750
*West TeleServices 18,800 479,400
*Western Multiplex 15,400 217,525
*XO Communications 27,800 937,816
----------
6,462,622
----------
--------------------------------------------------------------------------------
Total Common Stock
(cost $30,976,361) 36,216,545
================================================================================
Principal
Amount
--------------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 3.78%
With Chase Manhattan
6.55% 11/1/00 (dated
10/31/00, collateralized
by $502,000 U.S.
Treasury Notes 4.75%
due 2/15/04, market
value $490,116) $478,000 478,000
With J.P. Morgan Securities
6.52% 11/1/00 (dated
10/31/00, collateralized
by $199,000 U.S.
Treasury Notes 6.25%
due 2/15/03, market
value $202,431 and
$135,000 U.S.
<PAGE>
Principal Market
Amount Value
--------------------------------------------------------------------------------
Treasury Notes 5.25%
due 8/15/03, market
value $134,161 and
$135,000 U.S.
Treasury Notes 7.25%
due 5/15/04, market
value $145,208) $472,000 $ 472,000
With PaineWebber
6.54% 11/1/00 (dated
10/31/00, collateralized
by $468,000 U.S.
Treasury Notes 5.875%
due 11/15/05, market
value $482,226) 472,000 472,000
--------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $1,422,000) 1,422,000
================================================================================
--------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 99.98%
(COST $32,398,361) 37,638,545
================================================================================
--------------------------------------------------------------------------------
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES: 0.02% 6,946
================================================================================
--------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
1,986,297 SHARES
OUTSTANDING; EQUIVALENT TO
$18.95 PER SHARE: 100.00% $37,645,491
================================================================================
--------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS AT
OCTOBER 31, 2000:
--------------------------------------------------------------------------------
Shares of beneficial interest
(unlimited authorization-no par) $33,603,495
Accumulated net realized loss on
investments (1,198,188)
Net unrealized appreciation of
investments 5,240,184
--------------------------------------------------------------------------------
Total net assets $37,645,491
================================================================================
* Non-income producing security for the year ended October 31, 2000.
See accompanying notes
66 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
Delaware Pooled Trust: The Real Estate Investment Trust Portfolio II
Statement of Net Assets
October 31, 2000
Number Market
of Shares Value
--------------------------------------------------------------------------------
COMMON STOCK: 98.76%
Hotel REITs: 1.33%
MeriStar Hospitality 1,500 $ 28,687
--------
28,687
--------
Mall REITs: 6.61%
General Growth Properties 1,500 44,250
Macerich 1,600 31,400
Simon Property Group 2,470 55,111
Taubman Centers 1,100 12,031
--------
142,792
--------
Manufactured Housing REITs: 6.63%
Chateau Communities 2,780 78,187
Sun Communities 2,140 65,003
--------
143,190
--------
Multifamily REITs: 22.19%
Apartment Investment &
Management Class A 1,990 90,918
AvalonBay Communities 2,251 103,405
Camden Property Trust 1,300 37,213
Equity Residential Properties 1,700 80,006
Essex Property Trust 1,450 75,400
Grove Property Trust 5,455 92,565
--------
479,507
--------
Office/Industrial REITs: 44.54%
Alexandria Real Estate Equities 2,300 77,913
AMB Property 3,880 91,180
CarrAmerica Realty 2,390 70,654
Crescent Real Estate Equities 700 14,088
Duke-Weeks Realty 4,040 95,698
Equity Office Properties Trust 4,620 139,178
First Industrial Realty 1,800 55,575
Liberty Property Trust 1,533 40,529
Prentiss Properties Trust 3,575 90,716
ProLogis 3,400 71,400
Reckson Associates Realty 3,330 75,341
SL Green Realty 3,080 82,583
Spieker Properties 1,040 57,590
--------
962,445
--------
<PAGE>
Number Market
of Shares Value
--------------------------------------------------------------------------------
Retail Strip Centers REITs: 6.65%
Kimco Realty 1,800 $ 72,450
Pan Pacific Retail Properties 3,490 71,327
----------
143,777
----------
Self Storage REITs: 2.68%
Public Storage 2,570 57,825
----------
57,825
----------
Other/Operating Companies: 8.13%
*Catellus Development 3,710 67,475
Starwood Hotels & Resorts
Worldwide 2,490 73,766
Trizec Hahn 2,300 34,356
----------
175,597
----------
--------------------------------------------------------------------------------
Total Common Stock
(cost $1,936,177) 2,133,820
================================================================================
Principal
Amount
--------------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 1.76%
With Chase Manhattan
6.55% 11/1/00 (dated
10/31/00, collateralized
by $13,000 U.S.
Treasury Notes 4.75%
due 2/15/04, market
value $13,097) $12,800 12,800
With J.P. Morgan Securities
6.52% 11/1/00 (dated
10/31/00, collateralized
by $5,000 U.S.
Treasury Notes 6.25%
due 2/15/03, market
value $5,410 and
$4,000 U.S.
Treasury Notes 5.25%
due 8/15/03, market
value $3,585 and
$4,000 U.S.
Treasury Notes 7.25%
due 5/15/04, market
value $3,880) 12,600 12,600
2000 Annual Report o Delaware Pooled Trust 67
<PAGE>
Principal Market
Amount Value
--------------------------------------------------------------------------------
With PaineWebber
6.54% 11/1/00 (dated
10/31/00, collateralized
by $13,000 U.S.
Treasury Notes 5.875%
due 11/15/05, market
value $12,887) $12,600 $ 12,600
--------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $38,000) 38,000
================================================================================
--------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 100.52%
(COST $1,974,177) 2,171,820
================================================================================
--------------------------------------------------------------------------------
LIABILITIES NET OF RECEIVABLES
AND OTHER ASSETS: (0.52%) (11,180)
================================================================================
--------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
137,820 SHARES
OUTSTANDING; EQUIVALENT TO
$15.68 PER SHARE: 100.00% $2,160,640
================================================================================
--------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 2000:
--------------------------------------------------------------------------------
Shares of beneficial interest
(unlimited authorization-no par) $3,016,801
Undistributed net investment income 60,304
Accumulated net realized loss on
investments (1,114,108)
Net unrealized appreciation of
investments 197,643
--------------------------------------------------------------------------------
Total net assets $2,160,640
================================================================================
REITs = Real Estate Investment Trusts
* Non-income producing security for the year ended October 31, 2000.
See accompanying notes
<PAGE>
Delaware Pooled Trust:
The Intermediate Fixed Income Portfolio
Statement of Net Assets
October 31, 2000
Principal Market
Amount Value
--------------------------------------------------------------------------------
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS: 11.30%
Federal National Mortgage
Association Whole Loan
Series 98-W3 A2
6.50% 7/25/28 $369,077 $364,633
Government National
Mortgage Association
Series 98-9B
6.85% 12/20/25 550,000 538,764
--------------------------------------------------------------------------------
Total Agency Collateralized Mortgage Obligations
(cost $924,177) 903,397
================================================================================
AGENCY MORTGAGE-BACKED SECURITIES: 16.52%
Federal Home Loan
Mortgage Corporation
7.00% 11/15/30 150,000 147,141
Federal National
Mortgage Association
7.00% 8/1/28 308,888 302,614
7.00% 11/1/28 243,685 238,735
7.00% 8/1/29 163,296 160,387
7.00% 10/1/29 480,617 472,056
--------------------------------------------------------------------------------
Total Agency Mortgage-Backed Securities
(cost $1,335,548) 1,320,933
================================================================================
AGENCY OBLIGATIONS: 22.70%
Federal National
Mortgage Association
7.00% 7/15/05 1,625,000 1,656,122
7.25% 5/15/30 150,000 159,039
--------------------------------------------------------------------------------
Total Agency Obligations
(cost $1,800,817) 1,815,161
================================================================================
ASSET-BACKED SECURITIES: 10.38%
NationsCredit Grantor Trust
Series 97-1 A 6.75%
8/15/13 180,190 179,044
Peco Energy Transition Trust
Series 99-A A4
5.80% 3/1/07 415,000 399,985
Philadelphia, Pennsylvania
Authority For Industrial
Development Series 97A
6.488% 6/15/04 264,506 250,620
--------------------------------------------------------------------------------
Total Asset-Backed Securities
(cost $862,947) 829,649
================================================================================
68 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
Principal Market
Amount Value
--------------------------------------------------------------------------------
COMMERCIAL MORTGAGE-BACKED SECURITIES: 4.09%
Comm Series 2000-C1 A1
7.206% 9/15/08 $129,353 $ 130,345
First Union National Bank
Commercial Mortgage
Series 99-C4 A1
7.184% 9/15/08 195,144 196,947
--------------------------------------------------------------------------------
Total Commercial Mortgage-Backed Securities
(cost $323,397) 327,292
================================================================================
CORPORATE BONDS: 24.35%
Banking, Finance and Insurance: 7.56%
Banco Santander-Chile
6.50% 11/1/05 250,000 241,944
Morgan Stanley Dean Witter
7.75% 6/15/05 355,000 362,706
----------
604,650
----------
Energy: 3.16%
Osprey Trust
8.31% 1/15/03 250,000 252,764
----------
252,764
----------
Environmental Services: 3.56%
USA Waste Services
6.125% 7/15/01 290,000 284,432
----------
284,432
----------
Metals and Mining: 1.58%
Alcoa
7.375% 8/1/10 125,000 126,389
----------
126,389
----------
Telecommunications: 8.49%
Cox Communications
6.15% 8/1/03 310,000 300,906
Worldcom
7.55% 4/1/04 375,000 377,898
----------
678,804
----------
--------------------------------------------------------------------------------
Total Corporate Bonds
(cost $1,979,000) 1,947,039
================================================================================
U.S. TREASURY OBLIGATIONS: 11.91%
U.S. Treasury Notes
4.25% 11/15/03 140,000 133,710
6.25% 8/31/02 85,000 85,402
6.50% 2/15/10 700,000 732,978
--------------------------------------------------------------------------------
Total U.S. Treasury Obligations
(cost $932,000) 952,090
================================================================================
<PAGE>
Principal Market
Amount Value
--------------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 3.87%
With Chase Manhattan
6.55% 11/1/00 (dated
10/31/00, collateralized
by $109,000 U.S.
Treasury Notes 4.75%
due 2/15/04, market
value $106,502) $104,000 $ 104,000
With J.P. Morgan Securities
6.52% 11/1/00 (dated
10/31/00, collateralized
by $43,000 U.S.
Treasury Notes 6.25%
due 2/15/03, market
value $43,988 and
$29,000 U.S.
Treasury Notes 5.25%
due 8/15/03, market
value $29,153 and
$29,000 U.S.
Treasury Notes 7.25%
due 5/15/04, market
value $31,554) 102,500 102,500
With PaineWebber
6.54% 11/1/00 (dated
10/31/00, collateralized
by $102,000 U.S.
Treasury Notes 5.875%
due 11/15/05, market
value $104,788) 102,500 102,500
--------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $309,000) 309,000
================================================================================
--------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 105.12%
(COST $8,466,886) 8,404,561
================================================================================
--------------------------------------------------------------------------------
LIABILITIES NET OF RECEIVABLES
AND OTHER ASSETS: (5.12%) (409,115)
================================================================================
--------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
835,767 SHARES
OUTSTANDING; EQUIVALENT TO
$9.57 PER SHARE: 100.00% $7,995,446
================================================================================
--------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 2000:
--------------------------------------------------------------------------------
Shares of beneficial interest
(unlimited authorization-no par) $8,635,508
Undistributed net investment income 600
Accumulated net realized loss on
investments (578,337)
Net unrealized depreciation of
investments (62,325)
--------------------------------------------------------------------------------
Total net assets $7,995,446
================================================================================
See accompanying notes
2000 Annual Report o Delaware Pooled Trust 69
<PAGE>
Delaware Pooled Trust: The Aggregate Fixed Income Portfolio
Statement of Net Assets
October 31, 2000
Principal Market
Amount Value
--------------------------------------------------------------------------------
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS: 2.32%
Federal Home Loan
Mortgage Corporation
Series T-11 A5
6.50% 1/25/15 $ 60,000 $ 59,245
Federal National Mortgage
Association Whole Loan
Series 98-W3 A2
6.50% 7/25/28 71,434 70,574
Government National
Mortgage Association
Series 98-9 B
6.85% 12/20/25 40,000 39,183
--------------------------------------------------------------------------------
Total Agency Collateralized Mortgage Obligations
(cost $170,486) 169,002
================================================================================
AGENCY MORTGAGE-BACKED SECURITIES: 34.19%
Federal Home Loan
Mortgage Corporation
7.00% 11/15/30 240,000 235,425
7.50% 10/1/30 60,000 60,000
Federal National
Mortgage Association
6.00% 4/1/13 154,645 150,489
7.00% 11/1/28 119,543 117,115
7.00% 8/1/29 121,306 119,145
7.00% 2/1/30 876,371 860,487
7.00% 10/1/30 140,000 137,331
7.50% 9/1/29 120,540 120,464
7.50% 10/1/29 141,280 141,191
Government National
Mortgage Association
7.50% 6/15/30 199,611 200,609
7.50% 8/15/30 343,644 345,147
--------------------------------------------------------------------------------
Total Agency Mortgage-Backed Securities
(cost $2,464,623) 2,487,403
================================================================================
AGENCY OBLIGATIONS: 17.91%
Federal National Mortgage Association
6.625% 9/15/09 45,000 44,893
7.125% 2/15/05 50,000 51,114
7.125% 1/15/30 95,000 99,120
7.25% 1/15/10 250,000 259,489
7.25% 5/15/30 800,000 848,207
--------------------------------------------------------------------------------
Total Agency Obligations
(cost $1,283,117) 1,302,823
================================================================================
<PAGE>
Principal Market
Amount Value
--------------------------------------------------------------------------------
ASSET-BACKED SECURITIES: 7.28%
Citibank Credit Card
Master Trust I
Series 99-7 A
6.65% 11/15/06 $135,000 $134,167
Discover Card
Master Trust
Series 99-2 A
5.90% 10/15/04 110,000 108,593
Ford Credit Auto
Owner Trust
Series 00-F A2
6.56% 5/17/04 100,000 99,750
Peco Energy
Transition Trust
Series 99-A A4
5.80% 3/1/07 115,000 110,839
Standard Credit Card
Master Trust
Series 94-4 A
8.25% 11/7/03 75,000 75,935
--------------------------------------------------------------------------------
Total Asset-Backed Securities
(cost $535,644) 529,284
================================================================================
COMMERCIAL MORTGAGE-BACKED SECURITIES: 5.48%
Comm Series 00-C1 A1
7.206% 9/15/08 69,652 70,186
DLJ Commerical
Series 99-CG1 A1B
6.46% 1/10/09 115,000 110,363
First Union National Bank
Series 99-C4 A1
7.184% 9/15/08 97,572 98,473
Lehman Large Loan
Series 97-LLI A1
6.84% 9/12/06 120,000 119,856
--------------------------------------------------------------------------------
Total Commercial Mortgage-Backed Securities
(cost $396,028) 398,878
================================================================================
CORPORATE BONDS: 15.87%
Automobiles and Automotive Parts: 1.05%
DaimlerChrysler
7.75% 6/15/05 75,000 76,371
--------
76,371
--------
70 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
Principal Market
Amount Value
--------------------------------------------------------------------------------
Banking, Finance and Insurance: 6.51%
Banco Santander-Chile
6.50% 11/1/05 $15,000 $ 14,517
Ford Motor Credit
7.50% 3/15/05 200,000 200,707
Osprey Trust
8.31% 1/15/03 100,000 101,105
PNC Funding
7.00% 9/1/04 160,000 157,616
--------
473,945
--------
Computers and Technology: 2.99%
Computer Sciences
7.50% 8/8/05 150,000 151,604
Sun Microsystems
7.65% 8/15/09 65,000 65,822
--------
217,426
--------
Electronics & Electrical Equipment: 0.69%
Arrow Electronics
8.20% 10/1/03 50,000 49,924
--------
49,924
--------
Environmental Services: 0.27%
USA Waste Services
6.125% 7/15/01 20,000 19,616
--------
19,616
--------
Leisure, Lodging & Entertainment: 1.61%
J Seagram & Sons
7.60% 12/15/28 35,000 38,761
Time Warner Entertainment
8.375% 3/15/23 75,000 78,590
--------
117,351
--------
Telecommunications: 2.75%
Cox Communications
6.15% 8/1/03 35,000 33,973
Worldcom
7.55% 4/1/04 165,000 166,275
--------
200,248
--------
--------------------------------------------------------------------------------
Total Corporate Bonds
(cost $1,162,390) 1,154,881
================================================================================
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS: 1.23%
Residential Accredit Loans
Series 98-QS9 A3
6.75% 7/25/28 90,000 89,314
--------------------------------------------------------------------------------
Total Non-Agency Collateralized Mortgage Obligations
(cost $87,587) 89,314
================================================================================
<PAGE>
Principal Market
Amount Value
--------------------------------------------------------------------------------
U.S.TREASURY OBLIGATIONS: 12.15%
U.S. Treasury Notes
6.00% 8/15/09 $255,000 $257,728
6.50% 2/15/10 505,000 528,791
8.875% 8/15/17 75,000 97,500
--------------------------------------------------------------------------------
Total U.S. Treasury Obligations
(cost $861,536) 884,019
================================================================================
REPURCHASE AGREEMENTS: 5.68%
With Chase Manhattan
6.55% 11/1/00 (dated
10/31/00, collateralized
by $146,000 U.S.
Treasury Notes 4.75%
due 2/15/04, market
value $142,347) 139,000 139,000
With J.P. Morgan Securities
6.52% 11/1/00 (dated
10/31/00, collateralized
by $58,000 U.S.
Treasury Notes 6.25%
due 2/15/03, market
value $58,793 and
$39,000 U.S.
Treasury Notes 5.25%
due 8/15/03, market
value $38,965 and
$39,000 U.S.
Treasury Notes 7.25%
due 5/15/04, market
value $42,174) 137,000 137,000
With PaineWebber
6.54% 11/1/00 (dated
10/31/00, collateralized
by $136,000 U.S.
Treasury Notes 5.875%
due 11/15/05, market
value $140,056) 137,000 137,000
--------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $413,000) 413,000
================================================================================
--------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 102.11%
(COST $7,374,411) 7,428,604
================================================================================
--------------------------------------------------------------------------------
LIABILITIES NET OF RECEIVABLES
AND OTHER ASSETS: (2.11%) (153,512)
================================================================================
--------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
819,960 SHARES
OUTSTANDING; EQUIVALENT TO
$8.87 PER SHARE: 100.00% $7,275,092
================================================================================
2000 Annual Report o Delaware Pooled Trust 71
<PAGE>
--------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS AT
OCTOBER 31, 2000:
--------------------------------------------------------------------------------
Shares of beneficial interest
(unlimited authorization-no par) $7,367,290
Undistributed net investment income 384,661
Accumulated net realized loss on
investments (531,052)
Net unrealized appreciation of
investments 54,193
--------------------------------------------------------------------------------
Total net assets $7,275,092
================================================================================
See accompanying notes
<PAGE>
Delaware Pooled Trust:
The High-Yield Bond Portfolio
Statement of Net Assets
October 31, 2000
Principal Market
Amount Value
--------------------------------------------------------------------------------
CORPORATE BONDS: 82.02%
Banking and Finance: 4.78%
Beaver Valley Funding
9.00% 6/1/17 $ 40,000 $ 41,700
**Pinnacle Holdings
10.00% 3/15/08 40,000 23,000
Sovereign Bancorp
10.50% 11/15/06 25,000 25,500
--------
90,200
--------
Buildings and Materials: 2.50%
K Hovanian Enterprises
10.50% 10/1/07 15,000 14,137
Toll Brothers
8.125% 2/1/09 35,000 33,075
--------
47,212
--------
Cable, Media, and Publishing: 6.36%
Adelphia Communications
9.875% 3/1/07 25,000 22,625
Charter Communications
8.625% 4/1/09 50,000 45,250
Classic Cable
10.50% 3/1/10 40,000 33,200
Sinclair Broadcast Group
10.00% 9/30/05 20,000 19,050
--------
120,125
--------
Chemicals: 7.22%
Avecia Group PLC
11.00% 7/1/09 30,000 28,950
Huntsman
9.50% 7/1/07 100,000 58,500
Lyondell Chemical
9.875% 5/1/07 50,000 48,875
--------
136,325
--------
Consumer Products: 1.35%
Gaylord Container
9.75% 6/15/07 40,000 25,400
--------
25,400
--------
Electronics, Information and Data: 1.61%
Flextronics International
9.875% 7/1/10 30,000 30,450
--------
30,450
--------
72 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
Principal Market
Amount Value
--------------------------------------------------------------------------------
Energy: 8.49%
Calpine
8.625% 8/15/10 $ 25,000 $ 24,730
Chesapeake Energy
9.625% 5/1/05 25,000 25,219
Frontier Oil
11.75% 11/15/09 35,000 35,700
Nuevo Energy
9.50% 6/1/08 25,000 25,094
Parker Drilling
9.75% 11/15/06 30,000 29,550
Triton Energy
8.875% 10/1/07 20,000 20,125
--------
160,418
--------
Healthcare and Pharmaceuticals: 6.06%
Kinetic Concepts
9.625% 11/1/07 45,000 37,800
Oxford Health Plans
11.00% 5/15/05 35,000 38,325
Tenet Healthcare
7.625% 6/1/08 40,000 38,200
--------
114,325
--------
Industrial Machinery: 2.21%
Azurix
10.75% 2/15/10 45,000 41,625
--------
41,625
--------
Leisure, Lodging and Entertainment: 2.65%
Mohegan Tribal Gaming
8.75% 1/1/09 25,000 24,500
Venetian Casino
12.25% 11/15/04 25,000 25,438
--------
49,938
--------
Metals and Mining: 4.40%
Golden Northwest
12.00% 12/15/06 50,000 48,750
P and L Coal Holdings
9.625% 5/15/08 10,000 9,775
WCI Steel
10.00% 12/1/04 30,000 24,600
--------
83,125
--------
Paper and Forest Products: 2.07%
Doman Industries
12.00% 7/1/04 40,000 39,000
--------
39,000
--------
<PAGE>
Principal Market
Amount Value
--------------------------------------------------------------------------------
Restaurants: 5.13%
Carrols
9.50% 12/1/08 $100,000 $ 79,500
CKE Restaurants
9.125% 5/1/09 30,000 17,325
----------
96,825
----------
Retail: 2.32%
J Crew
10.375% 10/15/07 50,000 43,750
----------
43,750
----------
Telecommunications: 17.60%
Alestra
12.625% 5/15/09 40,000 34,000
Focal Communication
11.875% 1/15/10 25,000 19,375
Global Crossing
9.625% 5/15/08 20,000 19,200
Intermedia Communications
9.50% 3/1/09 100,000 96,750
Nextel International
12.75% 8/1/10 45,000 41,962
Nextlink Communications
12.50% 4/15/06 60,000 56,700
360networks
13.00% 5/1/08 25,000 20,125
**Viatel
12.50% 4/15/08 100,000 30,000
Winstar Communication
12.75% 4/15/10 20,000 14,200
----------
332,312
----------
Transportation and Shipping: 5.65%
Atlas Air
9.375% 11/15/06 50,000 49,250
Avis Rent A Car
11.00% 5/1/09 35,000 37,450
US Air
9.625% 2/1/01 20,000 19,975
----------
106,675
----------
Utilities: 1.62%
AES
9.375% 9/15/10 30,000 30,600
----------
30,600
----------
--------------------------------------------------------------------------------
Total Corporate Bonds
(cost $1,677,048) 1,548,305
================================================================================
2000 Annual Report o Delaware Pooled Trust 73
<PAGE>
Number Market
of Shares Value
--------------------------------------------------------------------------------
PREFERRED STOCK: 3.00%
CSC Holdings
11.125% 300 $32,025
Rural Cellular
11.375% 309 24,564
*TCR Holdings B 799 8
*TCR Holdings C 439 4
*TCR Holdings D 1,158 12
*TCR Holdings E 2,397 24
--------------------------------------------------------------------------------
Total Preferred Stock
(cost $58,413) 56,637
================================================================================
Principal
Amount
--------------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 4.88%
With Chase Manhattan
6.55% 11/1/00 (dated
10/31/00, collateralized
by $32,000 U.S.
Treasury Notes 4.75%
due 2/15/04, market
value $31,709) $31,000 31,000
With J.P. Morgan Securities
6.52% 11/1/00 (dated
10/31/00, collateralized
by $13,000 U.S.
Treasury Notes 6.25%
due 2/15/03, market
value $13,097 and
$9,000 U.S.
Treasury Notes 5.25%
due 8/15/03, market
value $8,680 and
$9,000 U.S.
Treasury Notes 7.25%
due 5/15/04, market
value $9,395) 30,000 30,000
With PaineWebber
6.54% 11/1/00 (dated
10/31/00, collateralized
by $30,000 U.S.
Treasury Notes 5.875%
due 11/15/05, market
value $31,199) 31,000 31,000
--------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $92,000) 92,000
================================================================================
<PAGE>
--------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 89.90%
(COST $1,827,461) $1,696,942
================================================================================
--------------------------------------------------------------------------------
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES: 10.10% 190,737
================================================================================
--------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
232,458 SHARES
OUTSTANDING; EQUIVALENT TO
$8.12 PER SHARE: 100.00% $1,887,679
================================================================================
--------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS AT
OCTOBER 31, 2000:
--------------------------------------------------------------------------------
Shares of beneficial interest
(unlimited authorization-no par) $5,832,421
Undistributed net investment income 146,246
Accumulated net realized loss on
investments (3,960,469)
Net unrealized depreciation of
investments (130,519)
--------------------------------------------------------------------------------
Total net assets $1,887,679
================================================================================
* Non-income producing security for the year ended October 31, 2000.
** Zero coupon security as of October 31, 2000. The coupon shown is the step-up
rate.
See accompanying notes
74 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
Delaware Pooled Trust: The Diversified Core Fixed Income Portfolio
Statement of Net Assets
October 31, 2000
Principal Market Value
Amount* (U.S.$)
--------------------------------------------------------------------------------
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS: 0.63%
Government National
Mortgage Association
Series 98-9 B
6.85% 12/20/25 US$ 50,000 $ 48,979
--------------------------------------------------------------------------------
Total Agency Collateralized Mortgage Obligations
(cost $50,139) 48,979
================================================================================
AGENCY MORTGAGE-BACKED SECURITIES: 26.88%
Federal National
Mortgage Association
7.00% 9/1/29 237,037 232,815
7.00% 2/1/30 146,062 143,415
7.00% 8/1/29 1,378,283 1,354,163
Government National
Mortgage Association
6.50% 1/15/28 356,380 346,023
--------------------------------------------------------------------------------
Total Agency Mortgage-Backed Securities
(cost $2,054,292) 2,076,416
================================================================================
AGENCY OBLIGATIONS: 12.85%
Federal National
Mortgage Association
5.75% 6/15/05 460,000 446,236
6.625% 1/15/02 100,000 100,138
6.625% 9/15/09 15,000 14,964
7.125% 1/15/30 160,000 166,940
7.25% 1/15/10 50,000 51,898
7.25% 5/15/30 200,000 212,052
--------------------------------------------------------------------------------
Total Agency Obligations
(cost $972,431) 992,228
================================================================================
ASSET-BACKED SECURITIES: 8.57%
Citibank Credit Card
Master Trust Series
99-7 A 6.65% 11/15/06 50,000 49,692
MBNA Master Credit Card
Trust Series
00 6.90% 1/15/08 65,000 65,340
Peco Series
99-A A4 5.80% 3/1/07 250,000 240,955
Philadelphia, Pennsylvania
Authority For Industrial
Development Tax Claim
Revenue Series 97-A
6.488% 6/15/04 242,464 229,735
<PAGE>
Principal Market Value
Amount* (U.S.$)
--------------------------------------------------------------------------------
Standard Credit Card
Master Trust Series
94-4 A 8.25% 11/7/03 US$ 75,000 $ 75,935
--------------------------------------------------------------------------------
Total Asset-Backed Securities
(cost $656,844) 661,657
================================================================================
COMMERCIAL MORTGAGE-BACKED SECURITIES: 1.15%
First Union National Bank
Commercial Mortgage
Series 99-C4
7.184% 9/15/08 87,815 88,626
--------------------------------------------------------------------------------
Total Commercial Mortgage-Backed Securities
(cost $87,321) 88,626
================================================================================
CORPORATE BONDS: 16.69%
Automobiles and Automotive Parts: 2.64%
Daimlerchrysler
7.75% 6/15/05 200,000 203,656
----------
203,656
----------
Banking, Finance and Insurance: 1.37%
Morgan Stanley Dean Witter
7.75% 6/15/05 50,000 51,085
Sovereign Bancorp
10.50% 11/15/06 5,000 5,100
Wells Fargo
6.625% 7/15/04 50,000 49,340
----------
105,525
----------
Cable, Media and Publishing: 1.38%
Adelphia Communication
10.50% 7/15/04 5,000 4,981
American Media Operating
10.25% 5/1/09 5,000 4,875
Charter Communications
8.625% 4/1/09 10,000 9,050
Classic Cable
10.50% 3/1/10 5,000 4,150
Sinclair Broadcast Group
10.00% 9/30/05 5,000 4,763
Time Warner
8.375% 3/15/23 75,000 78,590
----------
106,409
----------
Chemicals: 1.01%
Avecia Group PLC
11.00% 7/1/09 5,000 4,825
2000 Annual Report o Delaware Pooled Trust 75
<PAGE>
Principal Market Value
Amount* (U.S.$)
--------------------------------------------------------------------------------
Lyondell Chemical
9.875% 5/1/07 US$ 75,000 $ 73,313
--------
78,138
--------
Electronics, Information and Data: 1.64%
Computer Science
7.50% 8/8/05 125,000 126,337
--------
126,337
--------
Energy: 0.82%
Chesapeake Energy
9.625% 5/1/05 5,000 5,044
Conoco
5.90% 4/15/04 50,000 48,248
Frontier Oil
11.75% 11/15/09 5,000 5,100
Nuevo Energy
9.50% 6/1/08 5,000 5,019
--------
63,411
--------
Healthcare and Pharmaceuticals: 0.19%
Oxford Health Plans
11.00% 5/15/05 5,000 5,475
Tenet Healthcare
7.625% 6/1/08 10,000 9,550
--------
15,025
--------
Industrial: 0.06%
Azurix Corp
10.75% 2/15/10 5,000 4,625
--------
4,625
--------
Leisure, Lodging and Entertainment: 1.39%
Bally Total Fitness
9.875% 10/15/07 5,000 4,675
HMH Properties
7.875% 8/1/08 100,000 92,500
Hollywood Casino
11.25% 5/1/07 5,000 5,163
Venetian Casino
12.25% 11/15/04 5,000 5,088
--------
107,426
--------
Metals and Mining: 1.04%
Alcoa
7.375% 8/1/10 75,000 75,834
Golden Northwest
12.00% 12/15/06 5,000 4,875
--------
80,709
--------
<PAGE>
Principal Market Value
Amount* (U.S.$)
--------------------------------------------------------------------------------
Retail: 0.28%
J Crew
10.375% 10/15/07 US$ 25,000 $ 21,875
----------
21,875
----------
Telecommunications: 3.54%
Exodus Communications
10.75% 12/15/09 5,000 4,550
Global Crossing
9.625% 5/15/08 5,000 4,800
J Seagram & Sons
7.60% 12/15/28 35,000 38,761
Level 3 Communications
9.125% 5/1/08 5,000 4,063
Nextel Communications
9.375% 11/15/09 5,000 4,838
Nextel Communications
12.00% 11/1/08 10,000 10,725
Telewest Communications
9.625% 10/1/06 5,000 4,150
Worldcom
7.55% 4/1/04 200,000 201,545
----------
273,432
----------
Utilities: 0.13%
AES 10.25% 7/15/06 10,000 10,225
----------
10,225
----------
Miscellaneous: 1.20%
Caithness Coso Fund
9.05% 12/15/09 40,000 40,200
Pemex Finance
9.69% 8/15/09 50,000 52,374
----------
92,574
----------
--------------------------------------------------------------------------------
Total Corporate Bonds
(cost $1,279,415) 1,289,367
================================================================================
FOREIGN BONDS: 13.24%
Australia: 1.18%
New South Wales Treasury
6.50% 5/1/06 AUD 10,000 5,174
7.00% 4/1/04 60,000 31,634
Queensland Treasury
6.00% 7/14/09 40,000 20,266
Queensland Treasury-Global
8.00% 8/14/01 35,000 18,365
Toyota Finance Australia
7.00% 12/5/01 30,000 15,603
----------
91,042
----------
76 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
Principal Market Value
Amount* (U.S.$)
--------------------------------------------------------------------------------
Finland: 2.02%
Republic of Finland
5.00% 4/25/09 EUR 190,000 $ 156,382
----------
156,382
----------
France: 0.66%
France Government O.A.T.
5.50% 4/25/10 EUR 60,000 51,143
----------
51,143
----------
Germany: 3.65%
Deutschland Republic
6.00% 1/4/07 EUR 120,000 106,054
6.50% 7/4/27 20,000 18,866
8.00% 7/22/02 130,000 115,321
Rheinische Hypothekenbank
5.75% 7/5/10 20,000 16,868
Westfalische Hypothekbank
4.50% 3/23/05 30,000 24,416
----------
281,525
----------
Italy: 0.67%
Republic of Italy
5.125% 7/29/03 JPY 5,000,000 51,395
----------
51,395
----------
New Zealand: 1.62%
New Zealand Government
6.00% 11/15/11 NZD 200,000 75,148
8.00% 4/15/04 120,000 49,591
----------
124,739
----------
Portugal: 2.40%
Portuguese Government
5.375% 6/23/08 EUR 220,000 185,228
----------
185,228
----------
Supranational: 0.63%
International Bank Reconstruction
& Development
5.25% 3/20/02 JPY 5,000,000 48,910
----------
48,910
----------
United States: 0.41%
Federal National
Mortgage Association
7.25% 6/20/02 NZD 80,000 31,880
----------
31,880
----------
--------------------------------------------------------------------------------
Total Foreign Bonds
(cost $1,173,881) 1,022,244
================================================================================
<PAGE>
Principal Market Value
Amount* (U.S.$)
--------------------------------------------------------------------------------
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS: 0.64%
Residential Accredit Loans
Series 98-QS9 A3
6.75% 7/25/28 US$ 50,000 $ 49,619
--------------------------------------------------------------------------------
Total Non-Agency Collateralized Mortgage Obligations
(cost $50,226) 49,619
================================================================================
U.S. TREASURY OBLIGATIONS: 12.86%
U.S. Treasury Bonds
8.875% 8/15/17 150,000 195,000
U.S. Treasury Notes
4.75% 11/15/08 40,000 37,234
5.25% 2/15/29 375,000 341,852
5.50% 5/15/09 300,000 293,366
5.625% 5/15/08 55,000 54,236
6.00% 8/15/09 45,000 45,481
6.50% 2/15/10 25,000 26,178
--------------------------------------------------------------------------------
Total U.S. Treasury Obligations
(cost $976,022) 993,347
================================================================================
REPURCHASE AGREEMENTS: 3.56%
With Chase Manhattan
6.55% 11/1/00 (dated
10/31/00, collateralized
by $97,000 U.S.
Treasury Notes 4.75%
due 2/15/04, market
value $94,783) 92,400 92,400
With J.P. Morgan Securities
6.52% 11/1/00 (dated
10/31/00, collateralized
by $38,000 U.S.
Treasury Notes 6.25%
due 2/15/03, market
value $39,148 and
$26,000 U.S.
Treasury Notes 5.25%
due 8/15/03, market
value $25,945 and
$26,000 U.S.
Treasury Notes 7.25%
due 5/15/04, market
value $28,082) 91,300 91,300
With PaineWebber
6.54% 11/1/00 (dated
10/31/00, collateralized
by $90,500 U.S.
Treasury Notes 5.875%
due 11/15/05, market
value $93,258) 91,300 91,300
--------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $275,000) 275,000
================================================================================
2000 Annual Report o Delaware Pooled Trust 77
<PAGE>
--------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 97.07%
(COST $7,575,571) $7,497,483
================================================================================
--------------------------------------------------------------------------------
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES: 2.93% 226,096
================================================================================
--------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
897,832 SHARES
OUTSTANDING; EQUIVALENT TO
$8.60 PER SHARE: 100.00% $7,723,579
================================================================================
--------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS AT OCTOBER 31, 2000:
--------------------------------------------------------------------------------
Shares of beneficial interest
(unlimited authorization-no par) $7,543,531
Undistributed net investment income** 239,870
Accumulated net realized gain on
investments 20,156
Net unrealized depreciation of
investments and foreign currencies (79,978)
--------------------------------------------------------------------------------
Total net assets $7,723,579
================================================================================
*Principal amount is stated in the currency in which each bond is denominated.
AUD = Australian Dollar
EUR = European Monetary Unit
JPY = Japanese Yen
NZD = New Zealand Dollar
US$ = U.S. Dollar
**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
<PAGE>
Delaware Pooled Trust:
The Balanced Portfolio
Statement of Net Assets
October 31, 2000
Number Market
of Shares Value
-------------------------------------------------------------------------------
COMMON STOCK: 58.04%
Banking, Finance and Insurance: 12.03%
American International Group 11,825 $ 1,158,850
AXA Financial 30,600 1,654,313
Capital One Financial 28,900 1,824,314
Chase Manhattan 41,950 1,908,726
Citigroup 26,733 1,406,825
Dime Bancorp 32,600 796,664
Federal Home Loan 65,400 3,924,000
FleetBoston Financial 53,800 2,044,401
MBNA 35,900 1,348,494
Merrill Lynch 7,500 525,000
Morgan (J.P.) 4,600 761,300
Morgan Stanley Dean Witter 10,000 803,125
-----------
18,156,012
-----------
Cable, Media and Publishing: 0.37%
Gannett 9,600 556,800
-----------
556,800
-----------
Chemicals: 0.68%
Dow Chemical 33,700 1,032,063
-----------
1,032,063
-----------
Computers and Technology: 11.53%
*America Online 28,500 1,437,255
*Cisco Systems 32,300 1,740,164
Compaq Computer 64,900 1,973,610
Electronic Data Systems 24,000 1,126,501
*EMC 16,500 1,469,532
First Data 33,000 1,654,125
*Gateway 28,200 1,455,402
Hewlett-Packard 35,000 1,625,313
International Business
Machines 13,400 1,319,900
*Microsoft 29,600 2,038,701
*Oracle 47,300 1,560,901
-----------
17,401,404
-----------
Consumer Products: 2.75%
Kimberly-Clark 24,400 1,610,401
Tyco International 44,700 2,533,931
-----------
4,144,332
-----------
Electronics and Electrical Equipment: 3.68%
General Electric 49,200 2,696,775
Honeywell International 23,075 1,241,723
Intel 36,000 1,620,000
-----------
5,558,498
-----------
78 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
Number Market
of Shares Value
-------------------------------------------------------------------------------
Energy: 5.60%
Amerada Hess 17,800 $ 1,103,601
Coastal 29,500 2,225,407
Exxon Mobil 26,100 2,327,795
Halliburton 39,400 1,460,264
Sunoco 28,600 856,214
*Westport Resources 30,000 474,375
-----------
8,447,656
-----------
Food, Beverage and Tobacco: 1.56%
Anheuser Busch 5,900 269,926
Coca-Cola 18,600 1,122,976
*Suiza Foods 20,900 967,931
-----------
2,360,833
-----------
Healthcare and Pharmaceuticals: 7.83%
American Home Products 26,600 1,689,100
*Amgen 10,500 608,344
Baxter International 9,000 739,687
Biomet 23,850 863,072
Bristol-Myers Squibb 14,500 883,594
Johnson & Johnson 32,800 3,021,700
Medtronic 21,200 1,151,425
Merck 11,700 1,052,269
Pfizer 41,900 1,809,556
-----------
11,818,747
-----------
Leisure, Lodging and Entertainment: 0.47%
Viad 33,500 716,063
-----------
716,063
-----------
Retail: 2.45%
*Kroger 98,100 2,213,382
Wal-Mart Stores 32,700 1,483,764
-----------
3,697,146
-----------
Telecommunications: 6.20%
ALLTEL 15,700 1,011,669
BellSouth 21,300 1,029,056
Lucent Technologies 31,700 739,006
*McLeodUSA Class A 57,100 1,099,175
Nortel Networks 29,100 1,324,050
SBC Communications 47,900 2,763,231
*Worldcom 58,500 1,389,375
-----------
9,355,562
-----------
Transportation and Shipping: 1.56%
Tidewater 50,800 2,346,325
-----------
2,346,325
-----------
<PAGE>
Number Market
of Shares Value
-------------------------------------------------------------------------------
Utilities: 1.33%
*AES 12,200 $ 689,300
*Southern Energy 42,900 1,169,026
*TNPC 8,800 146,300
-----------
2,004,626
-----------
-------------------------------------------------------------------------------
Total Common Stock
(cost $83,577,165) 87,596,067
===============================================================================
Principal
Amount
-------------------------------------------------------------------------------
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS: 2.11%
Federal Home Loan Mortgage
Corporation Structured Pass
Through Securities T11 A5
6.50% 1/25/15 $1,050,000 1,036,791
Federal National Mortgage
Association Whole Loan
Series 98-W3 A2
6.50% 7/25/28 738,153 729,266
Government National Mortgage
Association Series 98-9 B
6.85% 12/20/25 1,450,000 1,420,377
-------------------------------------------------------------------------------
Total Agency Collateralized Mortgage Obligations
(cost $3,184,625) 3,186,434
===============================================================================
AGENCY MORTGAGE-BACKED SECURITIES: 12.93%
Federal National
Mortgage Association
7.00% 7/1/17 237,055 234,833
7.00% 8/1/28 542,641 531,619
7.00% 2/1/30 3,920,175 3,849,122
7.00% 8/1/30 1,081,192 1,061,257
7.00% 10/1/30 2,250,000 2,207,109
7.00% 11/15/30 1,115,000 1,093,745
7.50% 10/1/29 2,825,596 2,823,830
7.50% 10/1/29 4,905,649 4,907,182
7.50% 10/1/30 1,000,000 1,000,000
Government National
Mortgage Association
7.50% 6/15/30 1,796,501 1,805,483
-------------------------------------------------------------------------------
Total Agency Mortgage-Backed Securities
(cost $19,420,034) 19,514,180
===============================================================================
AGENCY OBLIGATIONS: 2.47%
Federal National
Mortgage Association
6.625% 9/15/09 430,000 428,978
7.125% 1/15/30 1,400,000 1,460,721
7.25% 1/15/10 1,770,000 1,838,138
-------------------------------------------------------------------------------
Total Agency Obligations
(cost $3,642,521) 3,727,837
===============================================================================
2000 Annual Report o Delaware Pooled Trust 79
<PAGE>
Principal Market
Amount Value
--------------------------------------------------------------------------------
ASSET-BACKED SECURITIES: 3.10%
MBNA Master Credit Card
Trust Series 00-I A
6.90% 01/15/08 $1,750,000 $1,759,153
PECO Series 99-A-A4
5.80% 3/1/07 1,145,000 1,103,574
Philadelphia, Pennsylvania
Authority For Industrial
Development Series 97A
6.488% 6/15/04 617,182 584,779
Residential Asset Securities
Corporation Series 00-KS4
AI3 7.355% 1/25/26 1,230,000 1,234,228
--------------------------------------------------------------------------------
Total Asset-Backed Securities
(cost $4,687,308) 4,681,734
================================================================================
COMMERCIAL MORTGAGE-BACKED SECURITIES: 3.49%
Chase Commercial Mortgage
Securities Series 96-2 C
6.90% 11/19/06 655,000 641,966
Comm Series 00-C1 A1
7.206% 09/15/08 597,016 601,593
DLJ Commerical Mortgage
Series 99CG1 A1B
6.46% 1/10/09 1,120,000 1,074,840
First Union National Bank
Commercial Mortgage
Series 99-C4 A1
7.184% 9/15/08 1,478,214 1,491,873
Lehman Large Loan
Series 97-LLI A2
6.84% 9/12/06 800,000 799,042
Nomura Asset Securities
Series 93-1 A-1
6.68% 12/15/01 662,050 657,084
--------------------------------------------------------------------------------
Total Commercial Mortgage-Backed Securities
(cost $5,235,202) 5,266,398
================================================================================
CORPORATE BONDS: 8.33%
Automobiles and Automotive Parts: 0.51%
Daimlerchrysler
7.75% 6/15/05 750,000 763,711
----------
763,711
----------
Banking, Finance and Insurance: 2.15%
Banco Santander-Chile
6.50% 11/1/05 530,000 512,921
Morgan Stanley Dean Witter
7.75% 6/15/05 900,000 919,536
Pemex Finance
9.69% 8/15/09 885,000 927,011
Wells Fargo
6.625% 7/15/04 900,000 888,115
----------
3,247,583
----------
<PAGE>
Principal Market
Amount Value
--------------------------------------------------------------------------------
Cable, Media and Publishing: 0.38%
Time Warner Entertainment
8.375% 3/15/23 $550,000 $ 576,324
-----------
576,324
-----------
Computers and Technology: 0.41%
Sun Microsystems
7.65% 8/15/09 610,000 617,712
-----------
617,712
-----------
Electronics and Electrical Equipment: 0.55%
Computer Science
7.50% 8/8/05 820,000 828,767
-----------
828,767
-----------
Environmental Services: 0.33%
USA Waste Services
6.125% 7/15/01 510,000 500,207
-----------
500,207
-----------
Healthcare and Pharmaceuticals: 0.63%
United Health Care
6.60% 12/1/03 980,000 949,301
-----------
949,301
-----------
Industrial Machinery: 0.64%
Arrow Electric
8.20% 10/1/03 600,000 599,093
Cinergy
6.53% 12/16/08 400,000 358,074
-----------
957,167
-----------
Telecommunications: 1.60%
Cox Communications
6.15% 8/1/03 780,000 757,118
Telefonica Europe
8.25% 9/15/30 600,000 618,296
Worldcom
7.55% 4/1/04 1,030,000 1,037,959
-----------
2,413,373
-----------
Transportation: 0.48%
Stagecoach Holdings
8.625% 11/15/09 810,000 730,101
-----------
730,101
-----------
Miscellaneous: 0.65%
Osprey Trust
8.31% 1/15/03 975,000 985,778
-----------
985,778
-----------
--------------------------------------------------------------------------------
Total Corporate Bonds
(cost $12,592,281) 12,570,024
================================================================================
80 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
Principal Market
Amount Value
--------------------------------------------------------------------------------
NON-AGENCY COLLATERALIZED MORTGAGE
OBLIGATIONS: 0.62%
Residential Accredit Loans
Series 98-QS9 A3
6.75% 7/25/28 $ 945,000 $937,802
--------------------------------------------------------------------------------
Total Non-Agency Collateralized Mortgage Obligations
(cost $940,480) 937,802
================================================================================
U.S. TREASURY OBLIGATIONS: 5.90%
U.S. Treasury Bonds
+5.25% 2/15/29 1,225,000 1,116,717
8.875% 8/15/17 1,000,000 1,299,998
U.S. Treasury Notes
5.75% 8/15/10 325,000 324,797
6.50% 2/15/10 4,035,000 4,225,093
6.75% 5/15/05 1,150,000 1,192,587
**U.S. Treasury Strip-Principal
6.625% 2/15/27 3,500,000 751,265
--------------------------------------------------------------------------------
Total U.S. Treasury Obligations
(cost $8,539,623) 8,910,457
================================================================================
REPURCHASE AGREEMENTS: 4.98%
With Chase Manhattan
6.55% 11/1/00 (dated
10/31/00, collateralized
by $2,650,000 U.S.
Treasury Notes 4.75%
due 2/15/04, market
value $2,589,479) 2,525,000 2,525,000
With J.P. Morgan Securities
6.52% 11/1/00 (dated
10/31/00, collateralized
by $1,049,000 U.S.
Treasury Notes 6.25%
due 2/15/03, market
value $1,069,525 and
$713,000 U.S.
Treasury Notes 5.25%
due 8/15/03, market
value $708,825 and
$713,000 U.S.
Treasury Notes 7.25%
due 5/15/04, market
value $767,192) 2,494,000 2,494,000
With PaineWebber
6.54% 11/1/00 (dated
(10/31/00, collateralized
by $2,471,000 U.S.
Treasury Notes 5.875% due
11/15/05, market
value $2,547,797) 2,494,000 2,494,000
<PAGE>
Market
Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $7,513,000) $ 7,513,000
================================================================================
--------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 101.97%
(COST $149,332,239) 153,903,933
================================================================================
--------------------------------------------------------------------------------
LIABILITIES NET OF RECEIVABLES
AND OTHER ASSETS: (1.97%) (2,966,718)
================================================================================
--------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
19,527,399 SHARES
OUTSTANDING; EQUIVALENT TO
$7.73 PER SHARE: 100.00% $ 150,937,215
================================================================================
--------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 2000:
--------------------------------------------------------------------------------
Shares of beneficial interest
(unlimited authorization-no par) $ 172,883,443
Undistributed net investment income 3,819,633
Accumulated net realized loss on
investments (30,328,790)
Net unrealized appreciation of
investments 4,562,929
--------------------------------------------------------------------------------
Total net assets $ 150,937,215
================================================================================
* Non-income producing security for the year ended October 31, 2000.
** Zero coupon security. Interest rate shown is the effective yield at the time
of purchase.
+ Fully or partially pledged as collateral for financial futures contracts.
See accompanying notes
2000 Annual Report o Delaware Pooled Trust 81
<PAGE>
Delaware Pooled Trust: The International Large-Cap Equity Portfolio
Statement of Net Assets
October 31, 2000
Number Market Value
of Shares (U.S. $)
-------------------------------------------------------------------------------
COMMON STOCK: 98.36%
Australia: 10.44%
AMP 7,444 $ 67,088
Foster's Brewing Group 34,000 77,002
National Australia Bank 7,300 101,390
Rio Tinto 4,060 55,721
--------
301,201
--------
Belgium: 1.51%
Electrabel 200 43,434
--------
43,434
--------
Finland: 0.68%
UPM-Kymmene 693 19,614
--------
19,614
--------
France: 11.09%
Alcatel 1,300 79,323
Compagnie de Saint Gobain 400 52,922
Societe Generale 1,600 90,840
Total Fina Class B ADR 678 97,010
--------
320,095
--------
Germany: 9.89%
Bayer 2,200 94,192
Bayerische Vereinsbank 1,400 76,039
RWE 1,600 64,090
Siemens 400 50,919
--------
285,240
--------
Hong Kong: 3.20%
Hong Kong Electric 28,000 92,448
--------
92,448
--------
Japan: 13.42%
Canon 2,000 79,355
Eisai 2,000 61,578
Hitachi 6,000 64,327
Matsushita Electric 4,000 116,191
West Japan Railway 16 65,683
--------
387,134
--------
Netherlands: 8.52%
Elsevier 6,300 80,465
ING Groep 1,200 82,407
Royal Dutch Petroleum 1,400 83,037
--------
245,909
--------
<PAGE>
Number Market Value
of Shares (U.S. $)
-------------------------------------------------------------------------------
New Zealand: 1.58%
Telecom Corporation of
New Zealand 20,600 $ 45,588
----------
45,588
----------
Singapore: 1.77%
Overseas Chinese Banking 8,000 51,016
----------
51,016
----------
South Korea: 0.82%
Pohang Iron & Steel ADR 1,500 23,719
----------
23,719
----------
Spain: 6.43%
Banco Santander Central
Hispanoamericano 6,700 64,934
Iberdrola 4,400 53,808
*Telefonica de Espana 3,500 66,742
----------
185,484
----------
United Kingdom: 29.01%
Bass 8,200 80,383
BG Group 16,900 67,996
Boots 10,500 83,578
British Airways 15,300 68,497
Cable & Wireless 5,800 82,318
GKN 6,600 76,240
Glaxo Wellcome 3,700 106,369
Halifax Group 7,500 59,046
HSBC 7,060 100,815
*Lattice Group 16,900 35,991
PowerGen 9,800 76,015
----------
837,248
----------
-------------------------------------------------------------------------------
Total Common Stock
(cost $3,000,270) 2,838,130
===============================================================================
Principal
Amount
-------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 1.87%
With Chase Manhattan
6.55% 11/1/00 (dated
10/31/00, collateralized
by $19,000 U.S.
Treasury Notes 4.75%
due 2/15/04, market
value $18,612) $18,200 18,200
82 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
Principal Market Value
Amount (U.S. $)
--------------------------------------------------------------------------------
With J.P. Morgan Securities
6.52% 11/1/00 (dated
10/31/00, collateralized
by $8,000 U.S.
Treasury Notes 6.25%
due 2/15/03, market
value $7,687 and
$5,000 U.S. Treasury
Notes 5.25% due 8/15/03,
market value $5,095
and $5,000 U.S.
Treasury Notes 7.25%
due 5/15/04, market
value $5,514) $17,900 $ 17,900
With PaineWebber
6.54% 11/1/00 (dated
10/31/00, collateralized
by $18,000 U.S.
Treasury Notes 5.875%
due 11/15/00, market
value $18,312) 17,900 17,900
-------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $54,000) 54,000
===============================================================================
-------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 100.23%
(COST $3,054,270) 2,892,130
===============================================================================
-------------------------------------------------------------------------------
LIABILITIES NET OF RECEIVABLES
AND OTHER ASSETS: (0.23%) (6,551)
===============================================================================
-------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
353,339 SHARES OUTSTANDING;
EQUIVALENT TO $8.17
PER SHARE: 100.00% $2,885,579
===============================================================================
-------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 2000:
-------------------------------------------------------------------------------
Shares of beneficial interest
(unlimited authorization-no par) $3,003,540
Undistributed net investment income** 17,295
Accumulated net realized gain on
investments 28,180
Net unrealized depreciation of
investments and foreign currencies (163,436)
-------------------------------------------------------------------------------
Total net assets $2,885,579
===============================================================================
* Non income producing security for the period ended October 31, 2000.
** 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
See accompanying notes
<PAGE>
Delaware Pooled Trust:
The Global Equity Portfolio
Statement of Net Assets
October 31, 2000
Number Market Value
of Shares (U.S. $)
-------------------------------------------------------------------------------
COMMON STOCK: 96.31%
Australia: 6.32%
Amcor Limited 8,700 $ 24,122
CSR Limited 20,000 40,952
Foster's Brewing Group 21,500 48,692
National Australia Bank 4,500 62,501
Orica 8,800 26,451
Paperlinx 2,900 4,960
--------
207,678
--------
Belgium: 1.36%
Electrabel 205 44,520
--------
44,520
--------
France: 5.37%
Alcatel 670 40,882
Compagnie de Saint Gobain 250 33,076
Societe Generale 1,000 56,775
Total Fina Class B ADR 320 45,786
--------
176,519
--------
Finland: 0.45%
*UPM-Kyemme 528 14,944
--------
14,944
--------
Germany: 8.08%
Bayer 1,700 72,784
Bayerische Vereinsbank 1,090 59,202
RWE 1,940 77,709
Siemens 440 56,011
--------
265,706
--------
Hong Kong: 3.49%
Hong Kong Electric 8,500 28,065
Jardine Matheson Holdings
Limited 8,800 48,840
Wharf Holdings 18,514 37,745
--------
114,650
--------
Japan: 3.78%
Canon 1,000 39,677
Eisai 1,000 30,789
Matsushita Electric Industrial 1,000 29,048
West Japan Railway 6 24,631
--------
124,145
--------
2000 Annual Report o Delaware Pooled Trust 83
<PAGE>
Number Market Value
of Shares (U.S. $)
-------------------------------------------------------------------------------
Malaysia: 1.14%
Sime Darby Berhad 30,000 $ 37,579
--------
37,579
--------
Netherlands: 5.35%
Elsevier 4,700 60,029
ING Groep 613 42,096
Royal Dutch Petroleum 1,240 73,547
--------
175,672
--------
New Zealand: 1.46%
Carter Holt Harvey Limited 17,500 11,591
Telecom Corporation of
New Zealand 16,461 36,429
--------
48,020
--------
Singapore: 0.97%
Overseas Chinese Banking 5,000 31,885
--------
31,885
--------
South Africa: 1.34%
Sanlam 23,300 24,188
Sasol 2,600 19,908
--------
44,096
--------
South Korea: 0.72%
Pohang Iron & Steel 1,500 23,719
--------
23,719
--------
Spain: 2.67%
Iberdrola 2,300 28,127
Telefonica 3,118 59,458
--------
87,585
--------
United Kingdom: 21.13%
Associated British Foods 3,784 21,334
Bass 8,042 78,834
Blue Circle Industry 9,800 60,087
Boots 7,950 63,281
British Airways 13,100 58,648
Cable & Wireless 5,600 79,479
GKN 7,200 83,171
Glaxo Wellcome 3,600 103,494
Halifax Group 3,450 27,161
PowerGen 8,100 62,829
Taylor Woodrow 21,500 56,317
--------
694,635
--------
United States: 32.68%
Alcoa 1,500 43,031
ALLTEL 600 38,663
Aon 1,500 62,156
Avon Products 1,500 72,750
Bank of America 905 43,497
<PAGE>
Number Market Value
of Shares (U.S. $)
-------------------------------------------------------------------------------
Baxter International 700 $ 57,531
Bristol-Myers Squibb 1,100 67,031
Chase Manhattan 1,050 47,775
Chevron 550 45,169
Compaq Computer 1,800 54,738
Exxon Mobil 700 62,431
Federal National Mortgage 1,000 77,000
Intel 800 36,000
International Business Machines 500 49,250
Johnson & Johnson 500 46,063
McGraw-Hill 1,000 64,188
Minnesota Mining and
Manufacturing 600 57,975
Motorola 1,400 34,913
Quaker Oats 600 48,938
Ralston-Purina Group 1,800 43,650
WorldCom 900 21,375
----------
1,074,124
----------
-------------------------------------------------------------------------------
Total Common Stock
(cost $3,225,041) 3,165,477
===============================================================================
Principal
Amount
-------------------------------------------------------------------------------
Repurchase Agreements: 3.71%
With Chase Manhattan
6.55% 11/1/00 (dated
10/31/00, collateralized
by $43,000 U.S.
Treasury Notes 4.75%
due 2/15/04, market
value $42,049) $41,000 41,000
With J.P. Morgan Securities
6.52% 11/1/00 (dated
10/31/00, collateralized
by $17,000 U.S.
Treasury Notes 6.25%
due 2/15/03, market
value $17,368 and
$12,000 U.S.
Treasury Notes 5.25%
due 8/15/03, market
value $11,510 and
$12,000 U.S.
Treasury Notes 7.25%
due 5/15/04, market
value $12,458) 40,500 40,500
With PaineWebber
6.54% 11/1/00 (dated
10/31/00, collateralized
by $40,000 U.S.
Treasury Notes 5.875%
due 11/15/05, market
value $41,372) 40,500 40,500
-------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $122,000) 122,000
===============================================================================
84 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
--------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 100.02%
(COST $3,347,041) $3,287,477
================================================================================
--------------------------------------------------------------------------------
LIABILITIES NET OF RECEIVABLES
AND OTHER ASSETS: (0.02%) (624)
================================================================================
--------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
383,923 SHARES
OUTSTANDING EQUIVALENT TO
$8.56 PER SHARE: 100.00% $3,286,853
================================================================================
--------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 2000:
--------------------------------------------------------------------------------
Shares of beneficial interest
(unlimited authorization-no par) $3,280,746
Undistributed net investment income** 45,604
Accumulated net realized gain on
investments 20,721
Net unrealized depreciation of
investments and foreign currencies (60,218)
--------------------------------------------------------------------------------
Total net assets $3,286,853
================================================================================
ADR = American Depository Receipt
* Non-income producing security for the year ended October 31, 2000.
** Undistributed net investment income includes net realized gains (losses) on
foreign currencies. Net realized gains (losses) on foreign currencies are
distributed as net investment income in accordance with provisions of the
Internal Revenue Code. See accompanying notes
<PAGE>
Delaware Pooled Trust:
The International Equity Portfolio
Statement of Net Assets
October 31, 2000
Number Market Value
of Shares (U.S. $)
-------------------------------------------------------------------------------
COMMON STOCK: 98.58%
Australia: 9.97%
+Amcor 3,413,704 $ 9,464,964
CSR 6,091,544 12,473,081
Foster's Brewing Group 4,592,575 10,401,046
National Australia Bank 1,217,227 16,906,188
Orica 1,063,200 3,195,820
Paperlinx 1,138,001 1,946,238
-----------
54,387,337
-----------
Belgium: 1.13%
Electrabel 28,280 6,141,554
-----------
6,141,554
-----------
Finland: 0.82%
*UPM-Kymmene 157,310 4,452,263
-----------
4,452,263
-----------
France: 10.07%
Alcatel 193,545 11,809,716
+Compagnie de Saint Gobain 84,945 11,238,609
Societe Generale 269,017 15,273,355
Total Fina Class B ADR 116,318 16,643,057
-----------
54,964,737
-----------
Germany: 9.50%
Bayer 377,900 16,179,559
Bayerische Vereinsbank 236,050 12,820,725
Continental 68,950 1,038,631
+Rheinisch Westfaelisches
Elek 285,900 11,452,090
Siemens 81,300 10,349,287
-----------
51,840,292
-----------
Hong Kong: 3.98%
Hong Kong Electric 2,278,300 7,522,275
Jardine Matheson Holdings 1,008,078 5,594,833
Wharf Holdings 4,223,171 8,609,876
-----------
21,726,984
-----------
Japan: 14.50%
Canon 443,000 17,577,104
+Chiyoda Fire and Marine
Insurance 419,000 1,121,121
Eisai 410,500 12,638,867
Hitachi 1,450,000 15,545,674
Matsushita Electric 516,000 14,988,724
2000 Annual Report o Delaware Pooled Trust 85
<PAGE>
Number Market Value
of Shares (U.S. $)
-------------------------------------------------------------------------------
Nichido Fire & Marine
Insurance 860,000 $ 4,444,606
West Japan Railway 3,083 12,656,314
Yokohama Reito 22,000 122,973
-----------
79,095,383
-----------
Malaysia: 0.76%
Sime Darby Berhad 3,309,000 4,145,012
-----------
4,145,012
-----------
Netherlands: 7.78%
Elsevier 1,047,600 13,380,138
ING Groep 187,835 12,899,148
Royal Dutch Petroleum 216,200 12,823,287
Vopak 174,740 3,336,595
-----------
42,439,168
-----------
New Zealand: 2.02%
+Carter Holt Harvey 5,613,000 3,717,613
+Telecom Corporation of
New Zealand 3,302,160 7,307,773
-----------
11,025,386
-----------
Singapore: 0.99%
Overseas Chinese Banking 848,000 5,407,732
-----------
5,407,732
-----------
South Africa: 1.85%
Sanlam 4,701,600 4,880,855
Sasol 683,500 5,233,565
-----------
10,114,420
-----------
South Korea: 0.93%
Pohang Iron & Steel 321,900 5,090,044
-----------
5,090,044
-----------
Spain: 5.60%
Banco Santander Central
Hispanoamericano 796,666 7,720,955
Iberdrola 724,967 8,865,655
*Telefonica 733,649 13,990,074
-----------
30,576,684
-----------
United Kingdom: 28.68%
Bass 1,438,225 14,098,713
BG Group 2,307,571 9,284,401
Blue Circle Industries 2,277,770 13,965,737
Boots 1,747,991 13,913,715
British Airways 2,214,245 9,913,069
Cable & Wireless 984,837 13,977,532
GKN 1,163,200 13,436,765
<PAGE>
Number Market Value
of Shares (U.S. $)
-------------------------------------------------------------------------------
Glaxo Wellcome 484,331 $ 13,923,679
Great Universal Stores 2,267,300 15,661,855
Halifax 1,417,200 11,157,275
*Lattice Group 2,307,571 4,914,286
PowerGen 1,503,017 11,658,398
Rio Tinto 631,600 10,247,341
Taylor Woodrow 135,500 354,931
------------
156,507,697
------------
-------------------------------------------------------------------------------
Total Common Stock
(cost $526,020,403) 537,914,693
===============================================================================
Principal
Amount
-------------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 1.58%
With Chase Manhattan
6.55% 11/1/00 (dated
10/31/00, collateralized
by $3,051,000 U.S.
Treasury Notes 4.75%
due 2/15/04, market
value $2,981,365) $2,906,000 2,906,000
With J.P. Morgan Securities
6.52% 11/1/00 (dated
10/31/00, collateralized
by $1,208,000 U.S.
Treasury Notes 6.25%
due 2/15/03, market
value $1,231,384 and
$821,000 U.S.
Treasury Notes 5.25%
due 8/15/03, market
value $816,097 and
$821,000 U.S.
Treasury Notes 7.25%
due 5/15/04, market
value $883,297) 2,872,000 2,872,000
With PaineWebber
6.54% 11/1/00 (dated
10/31/00, collateralized
by $2,845,000 U.S.
Treasury Notes 5.875%
due 11/15/05, market
value $2,933,375) 2,872,000 2,872,000
-------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $8,650,000) 8,650,000
===============================================================================
86 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
-------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 100.16%
(COST $534,670,403) $546,564,693
===============================================================================
-------------------------------------------------------------------------------
LIABILITIES NET OF RECEIVABLES
AND OTHER ASSETS: (0.16%) (898,045)
===============================================================================
-------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
30,927,386 SHARES
OUTSTANDING; EQUIVALENT TO
$17.64 PER SHARE: 100.00% $545,666,648
===============================================================================
-------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 2000:
-------------------------------------------------------------------------------
Shares of beneficial interest
(unlimited authorization-no par) $419,121,767
Undistributed net investment income* 15,462,035
Accumulated net realized gain on
investments 99,226,684
Net unrealized appreciation of
investments and foreign currencies 11,856,162
-------------------------------------------------------------------------------
Total net assets $545,666,648
===============================================================================
* Non-income producing security for the year ended October 31, 2000.
** 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.
ADR = American Depository Receipt
See accompanying notes
<PAGE>
Delaware Pooled Trust:
The Labor Select International Equity Portfolio
Statement of Net Assets
October 31, 2000
Number Market Value
of Shares (U.S. $)
-------------------------------------------------------------------------------
COMMON STOCK: 97.65%
Australia: 10.43%
+Amcor 480,477 $1,332,189
CSR 691,200 1,415,305
Foster's Brewing Group 970,402 2,197,720
+National Australia Bank 234,669 3,259,341
Orica 272,100 817,892
+Paperlinx 199,691 341,517
-----------
9,363,964
-----------
Belgium: 1.47%
Electrabel 6,078 1,319,956
-----------
1,319,956
-----------
France: 10.59%
Alcatel 41,330 2,521,871
Societe Generale 64,036 3,635,624
Total Fina Class B ADR 23,455 3,355,997
-----------
9,513,492
-----------
Finland: 0.72%
*UPM-Kymmene 22,852 646,768
-----------
646,768
-----------
Germany: 11.54%
Bayer 56,250 2,408,310
Bayerische Vereinsbank 42,700 2,319,191
Continental 53,800 810,418
+RWE 60,000 2,403,377
Siemens 19,050 2,425,017
-----------
10,366,313
-----------
Japan: 14.13%
Canon 73,000 2,896,453
Eisai 82,000 2,524,694
+Kinki Coca-Cola Bottling 22,000 231,834
Matsushita Electric 110,000 3,195,271
Nichido Fire & Marine
Insurance 190,000 981,948
West Japan Railway 606 2,487,748
Yokohama Reito 67,000 374,507
-----------
12,692,455
-----------
Netherlands: 8.39%
Elsevier 171,200 2,186,598
ING Groep 35,439 2,433,694
2000 Annual Report o Delaware Pooled Trust 87
<PAGE>
Number Market Value
of Shares (U.S. $)
-------------------------------------------------------------------------------
Royal Dutch Petroleum 41,760 $ 2,476,875
Vopak 22,780 434,976
-----------
7,532,143
-----------
New Zealand: 2.44%
Carter Holt Harvey Limited 1,290,800 854,925
+Telecom Corporation of
New Zealand 602,485 1,333,316
-----------
2,188,241
-----------
Spain: 6.59%
Acerinox 20,675 575,328
+Banco Santander Central
Hispanoamericano 291,678 2,826,822
Iberdrola 205,900 2,517,961
-----------
5,920,111
-----------
United Kingdom: 31.35%
Associated British Food 148,160 835,313
Bass 270,633 2,652,976
BG 416,238 1,674,714
Blue Circle Industries 361,884 2,218,827
Boots 357,900 2,848,824
British Airways 408,143 1,827,237
GKN 204,300 2,359,982
Glaxo Wellcome 103,860 2,985,796
Great Universal Stores 391,100 2,701,605
Halifax Group 253,500 1,995,745
*Lattice Group 416,238 886,435
PowerGen 302,550 2,346,778
Rio Tinto 124,554 2,020,816
Taylor Woodrow 306,750 803,505
-----------
28,158,553
-----------
--------------------------------------------------------------------------------
Total Common Stock
(cost $86,030,892) 87,701,996
===============================================================================
Principal
Amount
-------------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 1.97%
With Chase Manhattan
6.55% 11/1/00 (dated
10/31/00, collateralized
by $623,000 U.S.
Treasury Notes 4.75%
due 2/15/04, market
value $608,681) $593,000 593,000
With J.P. Morgan Securities
6.52% 11/1/00 (dated
10/31/00, collateralized
by $247,000 U.S.
<PAGE>
Principal Market Value
Amount (U.S.$)
-------------------------------------------------------------------------------
Treasury Notes 6.25%
due 2/15/03, market
value $251,402
and $168,000 U.S.
Treasury Notes 5.25%
due 8/15/03, market
value $166,616
and $168,000 U.S.
Treasury Notes 7.25%
due 5/15/04, market
value $180,336) $587,000 $ 587,000
With PaineWebber
6.54% 11/1/00 (dated
10/31/00, collateralized
by $581,000 U.S.
Treasury Notes 5.875%
due 11/15/05, market
value $598,883) 586,000 586,000
-------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $1,766,000) 1,766,000
===============================================================================
-------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 99.62%
(COST $87,796,892) 89,467,996
===============================================================================
-------------------------------------------------------------------------------
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES: 0.38% 345,894
===============================================================================
-------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
6,452,462 SHARES
OUTSTANDING; EQUIVALENT TO
$13.92 PER SHARE: 100.00% $89,813,890
===============================================================================
-------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 2000:
-------------------------------------------------------------------------------
Shares of beneficial interest
(unlimited authorization-no par) $77,596,703
Undistributed net investment income** 949,548
Accumulated net realized gain on
investments 9,616,461
Net unrealized appreciation of
investments and foreign currencies 1,651,178
-------------------------------------------------------------------------------
Total net assets $89,813,890
===============================================================================
* Non-income producing security for the year ended October 31, 2000.
** 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.
ADR = American Depository Receipt
See accompanying notes
88 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
Delaware Pooled Trust: The International Small-Cap Portfolio
Statement of Net Assets
October 31, 2000
Number Market Value
of Shares (U.S. $)
--------------------------------------------------------------------------------
COMMON STOCK: 92.37%
Australia: 0.74%
Simeon Wines 18,500 $ 22,052
--------
22,052
--------
Denmark: 1.36%
Bang & Olufsen Holding
Class B 826 40,307
--------
40,307
--------
Finland: 0.57%
Huhtamaki Van Leer Oyj 400 9,668
Talentum 900 7,256
--------
16,924
--------
France: 9.28%
Boiron 465 28,886
Carbone Lorraine 520 22,197
Fimalac 1,175 35,100
IMV Technologies 1,300 18,535
Manitou 470 41,043
Mecatherm 900 25,060
Norbert Dentressangle 1,225 16,322
Remy Cointreau 890 29,759
Royal Canin 300 27,114
Walter 340 30,816
--------
274,832
--------
Germany: 8.91%
AGIV 1,900 17,737
Babcock Borsig 655 24,958
Boewe Systec 1,470 30,315
Cewe Color Holding 1,900 31,120
Escada 350 33,564
FAG Kugelfischer Georg
Schaefer 7,601 55,088
KSB Vorzug 265 18,689
Ludwig Beck AM Rathauseck 4,819 52,347
--------
263,818
--------
Hong Kong: 4.08%
Cafe De Coral Holdings 84,000 31,235
Chen Hsong Holdings 220,000 27,080
Hung Hing Printing Group 82,000 31,017
South China Morning Post
(Holdings) 46,000 31,555
--------
120,887
--------
<PAGE>
Number Market Value
of Shares (U.S. $)
--------------------------------------------------------------------------------
Italy: 1.30%
Carraro 6,200 $16,627
La Doria 11,600 21,854
--------
38,481
--------
Japan: 16.52%
Arcland Sakamoto 3,000 35,737
Aronkasei 12,000 40,026
Daitec 2,000 23,825
Getz Brothers 8,000 41,052
Kayaba Industry 23,000 36,883
Miyachi Technos 1,800 106,387
Nagawa 6,000 32,438
Otsuka Kagu Limited 900 73,399
Takara Printing 5,500 47,627
Ube-Nitto Kasei 12,000 32,988
Zuiko 2,000 18,327
--------
488,689
--------
Netherlands: 6.16%
Ahrend 1,500 17,376
Draka Holding 800 46,812
ICT Automatisering 1,100 40,608
Stork 1,700 19,044
Unique International 1,200 24,441
Van Melle 1,400 34,158
--------
182,439
--------
New Zealand: 1.26%
The Warehouse Group 15,000 37,181
--------
37,181
--------
Norway: 1.83%
Nera 9,324 54,267
--------
54,267
--------
Singapore: 5.20%
Asia Pacific Breweries 10,000 22,206
Courts (Singapore) Limited 48,000 15,032
Overseas Union Bank 7,994 38,689
*Singapore Airport Terminal
Services 25,000 27,045
*SMRT Corporation 130,000 51,073
--------
154,045
--------
2000 Annual Report o Delaware Pooled Trust 89
<PAGE>
Number Market Value
of Shares (U.S. $)
--------------------------------------------------------------------------------
Spain: 0.53%
Portland Valderrivas 900 $ 15,658
----------
15,658
----------
Switzerland: 2.66%
Lindt & Spruengli 15 78,866
----------
78,866
----------
United Kingdom: 31.97%
Arriva 8,300 28,065
Body Shop International 34,564 44,642
Bovis Homes Group 8,375 43,268
Bristol Water Holdings 2,000 25,831
Cobham 1,951 31,357
Dairy Crest Group 23,910 55,517
Fuller Smith & Turner 4,795 24,529
Glynwed International 11,300 29,845
Harvey Nichols 21,100 53,432
Hewden Stuart 21,200 29,073
H.P. Bulmer Holdings 7,210 50,223
IMI 10,500 34,094
Laird Group 14,500 57,446
*Laporte-Class B 60,750 705
Laporte 6,750 51,623
Northern Foods 43,900 71,353
Pendragon 14,255 36,202
Persimmon 11,100 36,083
PizzaExpress 6,400 61,299
Rexam 18,781 62,959
*TTP Communications 11,040 47,022
TT Group 19,000 40,670
Wilshaw 55,600 31,064
----------
946,302
----------
----------------------------------------------------------------------------
Total Common Stock
(cost $3,108,016) 2,734,748
============================================================================
Principal
Amount
----------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 6.18%
With Chase Manhattan
6.55% 11/1/00 (dated
10/31/00, collateralized
by $65,000 U.S.
Treasury Notes 4.75%
due 2/15/04, market
value $63,074) $61,400 61,400
<PAGE>
Principal Market Value
Amount (U.S. $)
--------------------------------------------------------------------------------
With J.P. Morgan Securities
6.52% 11/1/00 (dated
10/31/00, collateralized
by $26,000 U.S.
Treasury Notes 6.25%
due 2/15/03, market
value $26,051 and
$17,000 U.S.
Treasury Notes 5.25%
due 8/15/03, market
value $17,265 and
$17,000 U.S.
Treasury Notes 7.25%
due 5/15/04, market
value $18,687) $60,800 $ 60,800
With PaineWebber
6.54% 11/1/00 (dated
10/31/00, collateralized
by $60,000 U.S.
Treasury Notes 5.875%
due 11/15/05, market
value $62,059) 60,800 60,800
-------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $183,000) 183,000
===============================================================================
-------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 98.55%
(COST $3,291,016) 2,917,748
===============================================================================
-------------------------------------------------------------------------------
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES: 1.45% 42,818
===============================================================================
-------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
358,218 SHARES
OUTSTANDING; EQUIVALENT TO
$8.26 PER SHARE: 100.00% $2,960,566
===============================================================================
-------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
AT OCTOBER 31, 2000:
-------------------------------------------------------------------------------
Shares of beneficial interest
(unlimited authorization-no par) $3,044,481
Undistributed net investment income** 73,553
Accumulated net realized gain on
investments 216,278
Net unrealized depreciation of
investments and foreign currencies (373,746)
-------------------------------------------------------------------------------
Total net assets $2,960,566
===============================================================================
*Non-income producing security for the year ended October 31, 2000.
**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
90 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
Delaware Pooled Trust: The Emerging Markets Portfolio
Statement of Net Assets
October 31, 2000
Number Market Value
of Shares (U.S. $)
--------------------------------------------------------------------------------
COMMON STOCK: 94.74%
Argentina: 1.48%
*Central Puerto Class B 634,916 $ 698,554
Transportadora de Gas
del Sur, Class B 593,300 1,008,822
----------
1,707,376
----------
Brazil: 21.76%
Aracruz Celulose ADR 160,700 2,410,500
Brasil Telecom 384,214,974 2,952,558
Centrais Electricas de
Santa Catrina 3,142,000 1,086,286
Centrais Electricas de
Santa Catrina GDR 5,350 185,023
Centrais Electricas de
Santa Catrina GDR 620 21,442
Companhia Energetica de
Minas Gerais 95,047 1,443,327
Companhia Energetica de
Minas Gerais GDR 20,200,000 306,651
Companhia Paranaense
de Energia Copel ADR 388,419 3,520,047
Gerdau Metalurgica 162,986,000 3,321,192
Petroleo Brasileiro-ADR 71,216 1,888,613
Petroleo Brasileiro-
Petrobras 8,000 212,090
Rossi Residential GDR 22,000 28,820
Telecomunicacoes de
Minas Gerais 76,266,000 3,096,184
Uniao de Bancos
Brasileiros 118,810,000 3,048,980
Usinas Siderurgicas de
Minas Gerais 275,900 1,416,354
Usinas Siderurgicas de
Minas Gerais ADR 16,152 82,944
----------
25,021,011
----------
Chile: 3.10%
Administradora de Fondos de
Pensiones Provida ADR 129,300 2,747,625
*Empresa Nacional Electricidad
ADR 77,851 817,436
----------
3,565,061
----------
<PAGE>
Number Market Value
of Shares (U.S. $)
--------------------------------------------------------------------------------
China: 6.71%
Beijing Capital International
Airport 12,678,000 2,926,068
Guangdong Kelon Electric
Holding 3,794,500 $705,478
Guangshen Railway 17,796,000 2,167,740
Shenzhen Expressway 16,616,800 1,917,569
----------
7,716,855
----------
Croatia: 1.77%
Zagrebacka Banka GDR 129,381 2,037,751
----------
2,037,751
----------
Egypt: 1.49%
*Mobile-Egyptian
Mobile Services 50,789 996,212
Paints and Chemical
Industries GDR 383,950 719,906
----------
1,716,118
----------
Estonia: 0.70%
Eesti Telekom GDR 51,548 798,994
----------
798,994
----------
Greece: 2.08%
Hellenic Telecommunications
Organization ADR 273,673 2,394,639
----------
2,394,639
----------
Hong Kong: 1.02%
Hengan International
Group 4,870,000 1,167,701
----------
1,167,701
----------
Hungary: 1.68%
Gedeon Richter GDR 40,149 1,937,189
----------
1,937,189
----------
India: 5.41%
Gas Authority of India ADR 308,601 1,581,580
ICICI ADR 115,879 1,093,608
Larsen & Toubro GDR 66,000 415,800
Mahanagar Telecom
Nigam GDR 180,800 1,066,720
Videsh Sanchar Nigam ADR 253,614 1,870,403
Videsh Sanchar Nigam GDR 26,008 196,360
----------
6,224,471
----------
2000 Annual Report o Delaware Pooled Trust 91
<PAGE>
Number Market Value
of Shares (U.S. $)
--------------------------------------------------------------------------------
Indonesia: 0.03%
PT United Tractors 772,800 $ 33,439
----------
33,439
----------
Israel: 3.37%
Bank Hapoalim 876,737 2,217,791
ECI Telecom Limited 70,225 1,659,066
----------
3,876,857
----------
Malaysia: 6.36%
*Leader Universal Holdings 3,517,000 684,898
Petronas Dagangan 2,674,000 2,406,632
Resorts World 822,000 1,438,519
Sime Darby 2,221,200 2,782,382
----------
7,312,431
----------
Mexico: 6.21%
ALFA Class A 1,579,000 3,124,313
Cemex de C.V. 693,643 2,916,173
*Grupo Minsa Class C 969,054 299,979
*Grupo Minsa de C.V. ADR 5,900 18,069
Vitro ADR 310,400 776,000
----------
7,134,534
----------
Peru: 0.85%
Banco de Credito del Peru 287,722 122,888
Creditcorp 117,300 857,756
----------
980,644
----------
Russia: 3.21%
Gazprom ADR 8,200 65,395
Gazprom ADR 174,518 1,391,781
Lukoil Holding ADR 41,820 2,233,188
----------
3,690,364
----------
South Africa: 13.19%
ABSA Group 675,538 2,295,957
*Iscor 1,563,992 2,481,969
Network Healthcare
Holdings 11,453,945 1,211,785
Sanlam 2,725,400 2,829,309
Sappi 455,400 3,119,632
Sasol 421,700 3,228,960
----------
15,167,612
----------
South Korea: 2.40%
Pohang Iron & Steel 17,010 988,448
Pohang Iron & Steel ADR 111,800 1,767,838
----------
2,756,286
----------
<PAGE>
Number Market Value
of Shares (U.S. $)
--------------------------------------------------------------------------------
Taiwan: 4.11%
China Steel GDR 234,874 $2,730,415
Yageo GDR 514,964 1,995,486
----------
4,725,901
----------
Thailand: 4.86%
*Bangkok Bank 1,206,900 1,028,374
Electricity Generating 2,904,700 2,755,538
Hana Microelectronics 741,600 1,803,027
----------
5,586,939
----------
Turkey: 1.04%
*Efes Sinai Yatirim Holding
ADR 7,680 165,120
*Efes Sinai Yatirim Holding 93,046,130 1,025,834
----------
1,190,954
----------
United States: 1.91%
*India Fund 205,300 2,194,144
----------
2,194,144
----------
----------------------------------------------------------------------------
Total Common Stock
(cost $139,782,665) 108,937,271
============================================================================
Principal
Amount
----------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 4.01%
With Chase Manhattan 6.55%
11/1/00 (dated
10/31/00, collateralized
by $1,625,000 U.S.
Treasury Notes 4.75%
due 2/15/04, market
value $1,588,223) $1,548,000 1,548,000
With J.P. Morgan Securities
6.52% 11/1/00 (dated
10/31/00, collateralized
by $644,000 U.S.
Treasury Notes 6.25%
due 2/15/03, market
value $655,979 and
$437,000 U.S.
Treasury Notes 5.25%
due 8/15/03, market
value $434,749 and
$437,000 U.S.
Treasury Notes 7.25%
due 5/15/04, market
value $470,547) 1,530,000 1,530,000
92 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
Principal Market Value
Amount (U.S. $)
-----------------------------------------------------------------------------
With PaineWebber
6.54% 11/1/00 (dated
10/31/00, collateralized
by $1,516,000 U.S.
Treasury Notes 5.875%
due 11/15/05, market
value $1,562,658) $1,530,000 $1,530,000
-----------------------------------------------------------------------------
Total Repurchase Agreements
(cost $4,608,000) 4,608,000
=============================================================================
-----------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 98.75%
(COST $144,390,665) 113,545,271
=============================================================================
-----------------------------------------------------------------------------
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES: 1.25% 1,433,161
=============================================================================
-----------------------------------------------------------------------------
NET ASSET APPLICABLE TO
16,397,156 SHARES
OUTSTANDING; EQUIVALENT TO
$7.01 PER SHARE: 100.00% $114,978,432
=============================================================================
-----------------------------------------------------------------------------
COMPONENTS OF NET ASSETS AT OCTOBER 31, 2000:
-----------------------------------------------------------------------------
Shares of beneficial interest
(unlimited authorization-no par) $145,168,588
Undistributed net investment income** 1,421,865
Accumulated net realized loss on
investments (758,739)
Net unrealized depreciation of
investments and foreign currencies (30,853,282)
-----------------------------------------------------------------------------
Total net assets $114,978,432
=============================================================================
*Non-income producing security for the year ended October 31, 2000.
**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
<PAGE>
Delaware Pooled Trust:
The Global Fixed Income Portfolio
Statement of Net Assets
October 31, 2000
Principal Market Value
Amount* (U.S. $)
--------------------------------------------------------------------------------
Bonds: 96.67%
Australia: 7.39%
New South Wales Treasury
6.50% 5/1/06 AUD 9,000,000 $ 4,656,773
7.00% 4/1/04 13,000,000 6,853,912
Queensland Treasury
8.00% 5/14/03 32,000,000 17,246,531
-----------
28,757,216
-----------
Austria: 6.02%
Oesterreich Kontrollbank
6.00% 5/19/09 US$ 7,000,000 6,605,900
Republic of Austria
4.375% 2/28/02 EUR 15,000,000 12,576,993
+5.50% 10/20/07 5,000,000 4,251,737
-----------
23,434,630
-----------
Belgium: 5.74%
+Kingdom of Belgium
5.75% 9/28/10 EUR 26,000,000 22,329,679
-----------
22,329,679
-----------
Canada: 2.59%
Government of Canada
10.25% 3/15/14 CAD 5,000,000 4,562,160
Ontario Hydro
10.00% 3/19/01 5,000,000 3,327,766
Ontario Province
6.25% 12/3/08 NZD 6,000,000 2,205,889
-----------
10,095,815
-----------
Finland: 4.18%
Republic of Finland
3.75% 11/12/03 EUR 20,000,000 16,280,502
-----------
16,280,502
-----------
France: 9.60%
Government of France
4.00% 10/25/09 EUR 30,000,000 23,040,848
+5.00% 7/12/05 17,000,000 14,341,930
-----------
37,382,778
-----------
Germany: 16.73%
Depfa Deutsche Pfandbriefbank
5.00% 2/3/05 EUR 10,000,000 8,334,999
Deut Pfandbriefe Hypobk Bank
5.625% 2/7/03 5,000,000 4,260,223
2000 Annual Report o Delaware Pooled Trust 93
<PAGE>
Principal Market Value
Amount* (U.S. $)
-------------------------------------------------------------------------------
Deutsche Genossen Hypobank
5.00% 3/17/08 EUR 10,000,000 $ 8,112,245
Deutschland Republic
6.00% 1/4/07 11,000,000 9,721,625
6.25% 1/4/24 18,000,000 16,375,550
Rheinische Hypothekenbank
5.75% 7/5/10 5,000,000 4,216,942
Treuhandansstalt
6.875% 6/11/03 16,000,000 14,120,178
-----------
65,141,762
-----------
Italy: 2.82%
+Republic of Italy
0.375% 5/12/02 JPY 1,200,000,000 10,987,259
-----------
10,987,259
-----------
Korea: 0.88%
Korea Electric Power
6.375% 12/1/03 US$ 3,600,000 3,412,440
-----------
3,412,440
-----------
Netherlands: 8.43%
Baden Wurt L-Finance
5.25% 9/26/01 DEM 10,000,000 4,331,919
5.75% 2/25/08 US$ 2,000,000 1,873,300
6.625% 8/20/03 DEM 26,000,000 11,601,438
Netherlands Government
+5.75% 2/15/07 EUR 12,500,000 10,878,632
7.50% 1/15/23 4,000,000 4,144,467
-----------
32,829,756
-----------
New Zealand: 12.06%
New Zealand Government
6.00% 11/15/11 NZD 40,000,000 15,029,554
+7.00% 7/15/09 42,000,000 17,021,993
8.00% 4/15/04 36,000,000 14,877,259
-----------
46,928,806
-----------
Norway: 1.76%
Kingdom of Norway
8.375% 1/27/03 CAD 10,000,000 6,846,466
-----------
6,846,466
-----------
Portugal: 3.89%
+Portuguese Government
5.375% 6/23/08 EUR 18,000,000 15,155,022
-----------
15,155,022
-----------
<PAGE>
Principal Market Value
Amount* (U.S. $)
-------------------------------------------------------------------------------
Supranational: 2.98%
International Bank Reconstruction
& Development
5.50% 11/3/08 NZD 7,000,000 $ 2,490,113
6.125% 9/27/02 DEM 8,000,000 3,513,612
7.25% 5/27/03 NZD 14,000,000 5,590,434
-----------
11,594,159
-----------
United States: 11.60%
Federal National Mortgage
Association 6.375%
8/15/07 AUD 25,000,000 12,726,924
KFW International Finance
1.00% 12/20/04 JPY 500,000,000 4,604,369
U.S. Treasury Inflation
Index Notes
3.375% 1/15/07 US$ 1,616,550 1,575,128
3.625% 1/15/08 26,656,870 26,240,383
-----------
45,146,804
-----------
-------------------------------------------------------------------------------
Total Bonds
(cost $441,795,290) 376,323,094
===============================================================================
REPURCHASE AGREEMENTS: 1.82%
With Chase Manhattan
6.55% 11/1/00 (dated
10/31/00, collateralized
by $2,496,000 U.S.
Treasury Notes 4.75%
due 2/15/04, market
value $2,438,516) 2,377,000 2,377,000
With J.P. Morgan Securities
6.52% 11/1/00 (dated
10/31/00, collateralized
by $988,000 U.S.
Treasury Notes 6.25%
due 2/15/03, market
value $1,007,172 and
$671,000 U.S.
Treasury Notes 5.25%
due 8/15/03, market
value $667,502
and $671,000 U.S.
Treasury Notes 7.25%
due 5/15/04, market
value $722,466) 2,349,000 2,349,000
With PaineWebber
6.54% 11/1/00 (dated
10/31/00, collateralized
by $2,327,000 U.S.
Treasury Notes 5.875%
due 11/15/05, market
value $2,399,263) 2,349,000 2,349,000
-------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $7,075,000) 7,075,000
===============================================================================
94 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
--------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 98.49%
(COST $448,870,290) $383,398,094
================================================================================
--------------------------------------------------------------------------------
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES: 1.51% 5,891,910
================================================================================
--------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
43,516,077 SHARES
OUTSTANDING; EQUIVALENT TO
$8.95 PER SHARE: 100.00% $389,290,004
================================================================================
--------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS AT OCTOBER 31, 2000:
--------------------------------------------------------------------------------
Shares of beneficial interest
(unlimited authorization-no par) $473,131,317
Accumulated net realized loss on
investments (17,831,882)
Net unrealized depreciation of
investments and foreign currencies (66,009,431)
--------------------------------------------------------------------------------
Total net assets $389,290,004
================================================================================
*Principal amount is stated in the currency in which each security is
denominated.
AUD = Australian Dollar
CAD = Canadian Dollar
DEM = German Deutsche Mark
EUR = European Monetary Unit
JPY = Japanese Yen
NZD = New Zealand Dollar
US$ = U.S. Dollar
+Security is partially or fully on loan.
See accompanying notes
<PAGE>
Delaware Pooled Trust:
The International Fixed Income Portfolio
Statement of Net Assets
October 31, 2000
Principal Market Value
Amount* (U.S. $)
--------------------------------------------------------------------------------
BONDS 96.37%
Australia: 6.86%
New South Wales Treasury
7.00% 4/1/04 AUD 2,800,000 $ 1,476,227
Queensland Treasury Global
8.00% 8/14/01 1,000,000 524,538
8.00% 5/14/03 2,700,000 1,455,176
-----------
3,455,941
-----------
Austria: 3.33%
Republic of Austria
4.375% 2/28/02 EUR 2,000,000 1,676,932
-----------
1,676,932
-----------
Belgium: 6.82%
Kingdom of Belgium
5.75% 9/28/10 EUR 4,000,000 3,435,335
-----------
3,435,335
-----------
Finland: 4.37%
Republic of Finland
9.50% 3/15/04 EUR 2,300,000 2,199,493
-----------
2,199,493
-----------
France: 2.13%
Government of France
4.00% 10/25/09 EUR 1,400,000 1,075,240
-----------
1,075,240
-----------
Germany: 21.43%
Allgemeine Hypothekenbank
4.00% 1/12/09 EUR 1,000,000 750,376
Bayerische Vereinsbank
6.50% 6/6/05 1,000,000 879,201
Depfa Pfandbriefbank
5.50% 1/15/10 800,000 665,477
Deutsche Genossen Hypobank
5.75% 1/22/07 800,000 680,278
Deutschland Republic
4.00% 7/4/09 4,000,000 3,105,041
6.00% 1/4/07 3,000,000 2,651,352
6.50% 7/4/27 1,500,000 1,414,912
Westfalische Hypothekbank
4.50% 3/23/05 800,000 651,084
-----------
10,797,721
-----------
2000 Annual Report o Delaware Pooled Trust 95
<PAGE>
Principal Market Value
Amount* (U.S. $)
--------------------------------------------------------------------------------
Italy: 3.86%
Republic of Italy
0.375% 5/12/02 JPY 100,000,000 $ 915,605
5.125% 7/29/03 100,000,000 1,027,902
----------
1,943,507
----------
Netherlands: 14.48%
Baden Wurt Finance
5.25% 9/26/01 DEM 4,700,000 2,036,002
DSL Finance
5.75% 3/19/09 1,500,000 646,241
6.00% 2/21/06 2,900,000 1,277,522
Netherlands Government
5.75% 2/15/07 EUR 3,000,000 2,610,872
7.50% 1/15/23 700,000 725,282
----------
7,295,919
----------
New Zealand: 8.70%
New Zealand Government
6.00% 11/15/11 NZD 3,000,000 1,127,217
7.00% 7/15/09 6,000,000 2,431,713
8.00% 4/15/04 2,000,000 826,514
----------
4,385,444
----------
Portugal: 6.68%
Portuguese Government
5.375% 6/23/08 EUR 4,000,000 3,367,783
----------
3,367,783
----------
Spain: 1.97%
Kingdom of Spain
3.10% 9/20/06 JPY 20,000,000 202,364
5.75% 3/23/02 80,000,000 787,904
----------
990,268
----------
Supranational: 11.35%
European Investment Bank
0.875% 11/08/04 JPY 80,000,000 733,803
International Bank
Reconstruction & Development
4.50% 3/20/03 JPY 100,000,000 1,002,611
5.25% 3/20/02 40,000,000 391,276
5.375% 11/6/03 NZD 500,000 190,139
5.50% 11/3/08 2,000,000 711,461
International Finance
Corporation
6.75% 7/15/09 2,500,000 955,045
Nordic Investment Bank
4.875% 3/1/01 DEM 4,000,000 1,733,115
----------
5,717,450
----------
United States: 4.39%
Federal National
Mortgage Association
6.375% 8/15/07 AUD 2,000,000 $1,018,155
7.25% 6/20/02 NZD 3,000,000 1,195,511
----------
2,213,666
----------
<PAGE>
Principal Market Value
Amount* (U.S. $)
--------------------------------------------------------------------------------
Total Bonds
(cost $58,271,879) $48,554,699
================================================================================
REPURCHASE AGREEMENTS: 1.74%
With Chase Manhattan
6.55% 11/1/00 (dated
10/31/00, collateralized by
$310,000 U.S. Treasury
Notes 4.75% due 2/15/04,
market value $302,617) US$ 295,000 295,000
With J.P. Morgan Securities
6.52% 11/1/00 (dated
10/31/00, collateralized by
$123,000 U.S. Treasury
Notes 6.25% due 2/15/03,
market value $124,989 and
$83,000 U.S. Treasury Notes
5.25% due 8/15/03, market
value $82,836 and $83,000
U.S. Treasury Notes
7.25% due 5/15/04,
market value $89,657) 291,500 291,500
With PaineWebber
6.54% 11/1/00 (dated
10/31/00, collateralized
by $289,000 U.S.
Treasury Notes 5.875%
due 11/15/05, market
value $297,746) 291,500 291,500
--------------------------------------------------------------------------------
Total Repurchase Agreements
(cost $878,000) 878,000
================================================================================
--------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES: 98.11%
(COST $59,149,879) 49,432,699
================================================================================
--------------------------------------------------------------------------------
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES: 1.89% 956,415
================================================================================
--------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
6,214,530 SHARES OUTSTANDING;
EQUIVALENT TO $8.11
PER SHARE: 100.00% $50,389,114
================================================================================
--------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS AT OCTOBER 31, 2000:
--------------------------------------------------------------------------------
Shares of beneficial interest
(unlimited authorization-no par) $63,349,769
Accumulated net realized loss on
investments (3,111,056)
Net unrealized depreciation of
investments and foreign currencies (9,849,599)
--------------------------------------------------------------------------------
Total net assets $50,389,114
================================================================================
*Principal amount is stated in the currency in which each security is
denominated:
AUD = Australian Dollar
DEM = German Deutsche Mark
EUR = European Monetary Unit
JPY = Japanese Yen
NZD = New Zealand Dollar
US$ = U.S. Dollar
See accompanying notes
96 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
Delaware Pooled Trust
Statements of Assets and Liabilities
October 31, 2000
<TABLE>
<CAPTION>
The The The The
Select Mid-Cap Intermediate High-Yield
Equity Growth Equity Fixed Income Bond
Portfolio Portfolio Portfolio Portfolio
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets:
Investments at market $2,068,785 $6,697,002 $ 8,404,561 $1,696,942
Cash 1,346 3,544 -- 125,963
Dividends and interest receivable 1,824 945 115,478 55,073
Receivable for securities sold 155,353 878,488 1,557,334 60,694
Other assets -- -- 1,846 --
-----------------------------------------------------------------
Total assets 2,227,308 7,579,979 10,079,219 1,938,672
-----------------------------------------------------------------
Liabilities:
Liquidations payable -- 795,078 1,874,523 --
Distributions payable -- -- 14,624 --
Payable for securities purchased 155,051 273,177 146,881 21,144
Other accounts payable and accrued expenses 14,426 5,395 47,745 29,849
-----------------------------------------------------------------
Total liabilities 169,477 1,073,650 2,083,773 50,993
-----------------------------------------------------------------
Total net assets $2,057,831 $6,506,329 $ 7,995,446 $1,887,679
=================================================================
Investments at cost $2,004,915 $4,509,779 $ 8,466,886 $1,827,461
=================================================================
</TABLE>
See accompanying notes
2000 Annual Report o Delaware Pooled Trust 97
<PAGE>
Delaware Pooled Trust
Statements of Operations
<TABLE>
<CAPTION>
Year Year Year
Ended Ended Ended
10/31/00 10/31/00 10/31/00
----------------------------------------
The The The
Large-Cap Equity Core
Value Equity Income Equity
Portfolio Portfolio Portfolio
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Income:
Interest $ 103,785 $1,531,904 $7,902
Dividends 2,587,656 2,371,812 24,564
Foreign tax withheld -- -- --
----------------------------------------
2,691,441 3,903,716 32,466
----------------------------------------
Expenses:
Management fees 576,428 622,977 11,907
Accounting and administration expenses 43,916 43,696 747
Reports and statements to shareholders 26,066 24,500 1,404
Registration fees 61,448 58,700 2,665
Professional fees 13,309 18,855 1,390
Taxes (other than taxes on income) 13,941 6,952 1,390
Dividend disbursing and transfer agent fees and expenses 7,480 10,370 429
Custodian fees 10,108 6,308 1,120
Trustees' fees 2,609 2,005 402
Amortization of organization expenses -- -- --
Other 31,083 10,226 197
----------------------------------------
786,388 804,589 21,651
Less expenses absorbed or waived (78,789) (72,063) (7,204)
Less expenses paid indirectly (3,184) (2,891) (160)
----------------------------------------
Total expenses 704,415 729,635 14,287
----------------------------------------
Net Investment Income (Loss) 1,987,026 3,174,081 18,179
----------------------------------------
Net Realized and Unrealized Gain (Loss)
on Investments and Foreign Currencies:
Net realized gain (loss) on:
Investments (8,177,342) (19,297,342) (105,893)
Futures contracts -- -- --
Options written -- -- --
Foreign currencies -- -- --
----------------------------------------
Net realized gain (loss) (8,177,342) (19,297,342) (105,893)
Net change in unrealized appreciation/depreciation
of investments and foreign currencies 7,071,221 20,348,203 (25,766)
----------------------------------------
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currencies (1,106,121) 1,050,861 (131,659)
----------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations $ 880,905 $ 4,224,942 $(113,480)
========================================
</TABLE>
98 2000 Annual Report o Delaware Pooled Trust
<PAGE>
<TABLE>
<CAPTION>
Year 3/31/00* Year Year Year
Ended to Ended Ended Ended
10/31/00 10/31/00 10/31/00 10/31/00 10/31/00
--------------------------------------------------------------------------
The
The All-Cap The The The
Select Growth Mid-Cap Small-Cap Small-Cap
Equity Equity Growth Equity Value Equity Growth Equity
Portfolio Portfolio Portfolio Portfolio Portfolio
--------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$466 $32,277 $21,543 $8,350 $133,148
109,145 11,903 7,335 36,098 11,608
-- -- -- -- --
--------------------------------------------------------------------------
109,611 44,180 28,878 44,448 144,756
--------------------------------------------------------------------------
25,101 42,497 55,238 15,714 155,739
1,355 2,266 2,570 827 7,570
4,495 2,214 1,288 1,854 1,800
7,258 10,633 8,403 3,823 9,798
605 1,239 633 1,381 450
1,801 20 100 381 1,960
296 718 2,402 193 1,448
809 1,008 1,543 976 283
269 455 475 95 519
-- -- -- -- --
738 1,444 3,563 781 1,897
--------------------------------------------------------------------------
42,727 62,494 76,215 26,025 181,464
(12,526) (12,354) (8,511) (7,335) (4,562)
(58) (730) (359) (63) (760)
--------------------------------------------------------------------------
30,143 49,410 67,345 18,627 176,142
--------------------------------------------------------------------------
79,468 (5,230) (38,467) 25,821 (31,386)
--------------------------------------------------------------------------
225,633 (911,327) 3,320,511 (55,945) (1,196,674)
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
--------------------------------------------------------------------------
225,633 (911,327) 3,320,511 (55,945) (1,196,674)
(213,866) 1,333,600 33,805 249,645 3,697,290
--------------------------------------------------------------------------
11,767 422,273 3,354,316 193,700 2,500,616
--------------------------------------------------------------------------
$ 91,235 $ 417,043 $3,315,849 $219,521 $2,469,230
==========================================================================
</TABLE>
* Date of commencement of operations.
See accompanying notes
Delaware Pooled Trust o 2000 Annual Report 99
<PAGE>
2000 Annual Report o Delaware Pooled Trust#
Delaware Pooled Trust
Statements of Operations continued
<TABLE>
<CAPTION>
Year Year
Ended Ended
10/31/00 10/31/00
-------------------------
The
Real Estate The
Investment Intermediate
Trust Fixed Income
Portfolio II Portfolio
--------------------------------------------------------------------------------
<S> <C> <C>
Investment Income:
Interest $ 6,264 $ 942,851
Dividends 131,753 --
Foreign tax withheld (60) --
-------------------------
137,957 942,851
-------------------------
Expenses:
Management fees 20,134 53,970
Accounting and administration expenses 318 5,534
Reports and statements to shareholders 2,895 2,151
Registration fees 13,223 900
Professional fees 745 1,901
Taxes (other than taxes on income) -- 1,712
Dividend disbursing and transfer agent fees and expenses 89 1,327
Custodian fees 1,157 4,089
Trustees' fees 89 613
Amortization of organization expenses -- 5,164
Other 515 2,241
-------------------------
39,165 79,602
Less expenses absorbed or waived (15,876) (7,668)
Less expenses paid indirectly (109) (310)
-------------------------
Total expenses 23,180 71,624
-------------------------
Net Investment Income 114,777 871,227
-------------------------
Net Realized and Unrealized Gain (Loss)
on Investments and Foreign Currencies:
Net realized gain (loss) on:
Investments (447,724) (482,037)
Futures contracts -- --
Options written -- --
Foreign currencies -- --
-------------------------
Net realized gain (loss) (447,724) (482,037)
Net change in unrealized appreciation/depreciation
of investments and foreign currencies 839,546 436,057
-------------------------
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currencies 391,822 (45,980)
-------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations $ 506,599 $ 825,247
=========================
</TABLE>
100 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
<TABLE>
<CAPTION>
Year Year Year Year 12/14/99*
Ended Ended Ended Ended to
10/31/00 10/31/00 10/31/00 10/31/00 10/31/00
----------------------------------------------------------------------------
The
The The The International
Aggregate High-Yield Diversified Core The Large-Cap
Fixed Income Bond Fixed Income Balanced Equity
Portfolio Portfolio Portfolio Portfolio Portfolio
----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 492,845 $ 614,180 $ 324,372 $ 4,652,551 $ 6,236
-- 21,105 -- 1,241,898 67,109
-- -- -- -- (6,515)
----------------------------------------------------------------------------
492,845 635,285 324,372 5,894,449 66,830
----------------------------------------------------------------------------
28,821 27,120 20,287 932,544 19,374
2,996 2,435 1,896 64,800 1,500
850 7,082 575 34,172 1,860
800 6,697 975 81,416 2,635
350 1,224 445 29,072 3,757
571 1,156 1,474 18,400 1,300
663 1,000 443 15,127 1,000
842 17,013 1,231 19,278 1,050
442 715 482 3,158 1,050
-- -- -- -- --
858 611 734 14,425 2,210
----------------------------------------------------------------------------
37,193 65,053 28,542 1,212,392 35,736
(679) (28,534) (2,888) (103,325) (10,843)
(458) (701) (592) (13,151) (60)
----------------------------------------------------------------------------
36,056 35,818 25,062 1,095,916 24,833
----------------------------------------------------------------------------
456,789 599,467 299,310 4,798,533 41,997
----------------------------------------------------------------------------
(324,895) (1,892,640) (61,042) (18,714,690) 28,180
-- -- -- (17,131) --
-- -- 190,283 -- --
-- -- (18,653) -- (21,173)
----------------------------------------------------------------------------
(324,895) (1,892,640) 110,588 (18,731,821) 7,007
273,646 1,786,529 (38,364) 10,949,837 (163,436)
----------------------------------------------------------------------------
(51,249) (106,111) 72,224 (7,781,984) (156,429)
----------------------------------------------------------------------------
$ 405,540 $ 493,356 $ 371,534 $ (2,983,451) $(114,432)
============================================================================
</TABLE>
* Date of commencement of operations.
See accompanying notes
Delaware Pooled Trust o 2000 Annual Report 101
<PAGE>
Delaware Pooled Trust
Statements of Operations continued
<TABLE>
<CAPTION>
Year Year
Ended Ended
10/31/00 10/31/00
-----------------------------
The The
Global International
Equity Equity
Portfolio Portfolio
-------------------------------------------------------------------------------------
<S> <C> <C>
Investment Income:
Interest $ 6,475 $ 1,552,590
Dividends 87,838 25,725,278
Foreign tax withheld (6,020) (2,436,227)
-----------------------------
88,293 24,841,641
-----------------------------
Expenses:
Management fees 25,065 6,204,153
Accounting and administration expenses 1,348 334,107
Reports and statements to shareholders 975 178,720
Registration fees 9,200 24,420
Professional fees 1,120 111,713
Taxes (other than taxes on income) 373 73,945
Dividend disbursing and transfer agent fees and expenses 550 60,229
Custodian fees 2,192 336,624
Trustees' fees 494 21,760
Amortization of organization expenses -- --
Other 2,066 73,665
-----------------------------
43,383 7,419,336
Less expenses absorbed or waived (11,158) --
Less expenses paid indirectly (173) (19,023)
-----------------------------
Total expenses 32,052 7,400,313
-----------------------------
Net Investment Income 56,241 17,441,328
-----------------------------
Net Realized and Unrealized Gain (Loss)
on Investments and Foreign Currencies:
Net realized gain (loss) on:
Investments 21,720 100,912,492
Futures contracts -- --
Options written -- --
Foreign currencies (3,147) (1,290,611)
-----------------------------
Net realized gain (loss) 18,573 99,621,881
Net change in unrealized appreciation/depreciation
of investments and foreign currencies (97,280) (88,565,052)
-----------------------------
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currencies (78,707) 11,056,829
-----------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations $(22,466) $ 28,498,157
=============================
</TABLE>
102 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
[RESTUBBED FOR TABLE ABOVE]
<TABLE>
<CAPTION>
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/00 10/31/00 10/31/00 10/31/00 10/31/00
--------------------------------------------------------------------------
The The
Labor Select The The Global The
International International Emerging Fixed International
Equity Small-Cap Markets Income Fixed Income
Portfolio Portfolio Portfolio Portfolio Portfolio
--------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 221,496 $ 12,780 $ 474,257 $ 35,317,930 $ 4,531,825
3,365,964 110,965 3,285,108 -- --
(359,307) (11,686) (146,547) -- --
--------------------------------------------------------------------------
3,228,153 112,059 3,612,818 35,317,930 4,531,825
--------------------------------------------------------------------------
831,627 29,814 1,165,784 2,799,168 386,689
43,933 1,197 47,033 226,232 31,246
29,250 960 5,000 171,479 23,138
23,243 4,170 34,450 34,030 12,214
15,621 367 6,433 72,090 1,833
16,849 30 7,225 95,967 11,343
10,216 286 9,929 51,352 7,463
75,279 2,832 79,565 445,939 59,794
2,415 138 2,561 13,741 2,071
-- -- -- -- --
17,984 461 7,762 74,478 3,579
--------------------------------------------------------------------------
1,066,417 40,255 1,365,742 3,984,476 539,370
(6,602) (4,519) -- (604,619) (72,883)
(3,261) (161) (6,380) (15,208) (1,777)
--------------------------------------------------------------------------
1,056,554 35,575 1,359,362 3,364,649 464,710
2,171,599 76,484 2,253,456 31,953,281 4,067,115
--------------------------------------------------------------------------
9,616,461 216,386 1,722,339 (13,382,143) (1,865,156)
-- -- -- -- --
-- -- -- -- --
173,120 (596) (234,969) (34,907,988) (6,895,585)
--------------------------------------------------------------------------
9,789,581 215,790 1,487,370 (48,290,131) (8,760,741)
(7,044,733) (384,940) (20,512,895) (37,056,515) (5,684,412)
--------------------------------------------------------------------------
2,744,848 (169,150) (19,025,525) (85,346,646) (14,445,153)
--------------------------------------------------------------------------
$ 4,916,447 $ (92,666) $(16,772,069) $(53,393,365) $(10,378,038)
==========================================================================
</TABLE>
See accompanying notes
2000 Annual Report o Delaware Pooled Trust 103
<PAGE>
Delaware Pooled Trust
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Year Year Year
Ended Ended Ended
10/31/00 10/31/99 10/31/00
---------------------------------------------
The The The
Large-Cap Large-Cap Equity
Value Equity Value Equity Income
Portfolio Portfolio Portfolio
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss) $1,987,026 $2,585,180 $3,174,081
Net realized gain (loss) on investments
and foreign currencies (8,177,342) 12,073,054 (19,297,342)
Net change in unrealized appreciation/
depreciation of investments and foreign currencies 7,071,221 (8,426,888) 20,348,203
---------------------------------------------
Net increase (decrease) in net assets
resulting from operations 880,905 6,231,346 4,224,942
---------------------------------------------
Distributions to Shareholders:
From net investment income (2,470,879) (2,367,724) (2,005,110)
In excess of net investment income -- -- --
From net realized gain on investments (12,273,061) (14,283,816) --
Return of capital -- -- --
---------------------------------------------
(14,743,940) (16,651,540) (2,005,110)
---------------------------------------------
Capital Share Transactions:
Proceeds from shares sold 11,222,501 34,597,297 14,231,847
Net asset value of shares issued upon
reinvestment of distributions 12,330,979 16,181,574 2,005,110
---------------------------------------------
23,553,480 50,778,871 16,236,957
Cost of shares repurchased (68,218,925) (16,806,683) (55,758,527)
---------------------------------------------
Increase (decrease) in net assets derived from
capital share transactions (44,665,445) 33,972,188 (39,521,570)
---------------------------------------------
Net Increase (Decrease) in Net Assets (58,528,480) 23,551,994 (37,301,738)
Net Assets:
Beginning of period 141,410,324 117,858,330 144,281,261
---------------------------------------------
End of period $ 82,881,844 $141,410,324 $106,979,523
=============================================
</TABLE>
* Date of commencement of operations.
See accompanying notes
104 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
<TABLE>
<CAPTION>
6/30/99* Year Year Year 6/29/99*
to Ended Ended Ended to
10/31/99 10/31/00 10/31/99 10/31/00 10/31/99
-------------------------------------------------------------------
The The The The The
Equity Core Core Select Select
Income Equity Equity Equity Equity
Portfolio Portfolio Portfolio Portfolio Portfolio
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
$1,268,932 $18,179 $19,089 $79,468 $(1,680)
(1,419,949) (105,893) (22,035) 225,633 (115,945)
(10,671,739) (25,766) (10,745) (213,866) 277,736
-------------------------------------------------------------------
(10,822,756) (113,480) (13,691) 91,235 160,111
-------------------------------------------------------------------
-- (20,850) (5,882) -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-------------------------------------------------------------------
-- (20,850) (5,882) -- --
-------------------------------------------------------------------
164,382,571 2 496,163 2 4,549,009
-- 20,850 5,882 -- --
-------------------------------------------------------------------
164,382,571 20,852 502,045 2 4,549,009
(9,278,554) (448,238) (1,220) (2,742,526) --
-------------------------------------------------------------------
155,104,017 (427,386) 500,825 (2,742,524) 4,549,009
-------------------------------------------------------------------
144,281,261 (561,716) 481,252 (2,651,289) 4,709,120
-- 2,593,023 2,111,771 4,709,120 --
-------------------------------------------------------------------
$144,281,261 $2,031,307 $2,593,023 $ 2,057,831 $4,709,120
===================================================================
</TABLE>
2000 Annual Report o Delaware Pooled Trust 105
<PAGE>
Delaware Pooled Trust
Statements of Changes in Net Assets continued
<TABLE>
<CAPTION>
3/31/00* Year Year
to Ended Ended
10/31/00 10/31/00 10/31/99
-------------------------------------------
The The The
All-Cap Mid-Cap Mid-Cap
Growth Equity Growth Equity Growth Equity
Portfolio Portfolio Portfolio
--------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets from Operations:
<S> <C> <C> <C>
Net investment income (loss) $ (5,230) $ (38,467) $ (21,716)
Net realized gain (loss) on investments
and foreign currencies (911,327) 3,320,511 705,411
Net change in unrealized appreciation/
depreciation of investments and foreign currencies 1,333,600 33,805 1,722,130
-------------------------------------------
Net increase in net assets
resulting from operations 417,043 3,315,849 2,405,825
-------------------------------------------
Distributions to Shareholders:
From net investment income -- -- (7,009)
In excess of net investment income -- -- --
From net realized gain on investments -- (642,789) (1,233,663)
Return of capital -- -- --
-------------------------------------------
-- (642,789) (1,240,672)
-------------------------------------------
Capital Share Transactions:
Proceeds from shares sold 12,721,620 583,716 597,175
Net asset value of shares issued upon
reinvestment of distributions -- 642,789 1,237,733
-------------------------------------------
12,721,620 1,226,505 1,834,908
Cost of shares repurchased -- (4,342,206) (930,589)
-------------------------------------------
Increase (decrease) in net assets derived from
capital share transactions 12,721,620 (3,115,701) 904,319
-------------------------------------------
Net Increase (Decrease) in Net Assets 13,138,663 (442,641) 2,069,472
Net Assets:
Beginning of period -- 6,948,970 4,879,498
-------------------------------------------
End of period $13,138,663 $ 6,506,329 $6,948,970
===========================================
</TABLE>
* Date of commencement of operations.
See accompanying notes
106 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
<TABLE>
<CAPTION>
Year 3/29/99* Year Year Year
Ended to Ended Ended Ended
10/31/00 10/31/99 10/31/00 10/31/99 10/31/00
---------------------------------------------------------------------------
The The The The The
Small-Cap Small-Cap Small-Cap Small-Cap Real Estate
Value Equity Value Equity Growth Equity Growth Equity Investment Trust
Portfolio Portfolio Portfolio Portfolio Portfolio II
---------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 25,821 $ 14,778 $ (31,386) $ 1,248 $ 114,777
(55,945) 51,499 (1,196,674) 728,478 (447,724)
249,645 (31,720) 3,697,290 1,186,549 839,546
---------------------------------------------------------------------------
219,521 34,557 2,469,230 1,916,275 506,599
---------------------------------------------------------------------------
(20,000) -- -- (8,824) (238,966)
-- -- -- -- --
(51,765) -- (683,868) -- --
-- -- -- -- --
---------------------------------------------------------------------------
(71,765) -- (683,868) (8,824) (238,966)
---------------------------------------------------------------------------
2 2,000,008 29,664,877 947,342 2
71,765 -- 683,868 8,824 238,966
---------------------------------------------------------------------------
71,767 2,000,008 30,348,745 956,166 238,968
-- -- (670,038) -- (2,798,019)
---------------------------------------------------------------------------
71,767 2,000,008 29,678,707 956,166 (2,559,051)
---------------------------------------------------------------------------
219,523 2,034,565 31,464,069 2,863,617 (2,291,418)
2,034,565 -- 6,181,422 3,317,805 4,452,058
---------------------------------------------------------------------------
$2,254,088 $ 2,034,565 $37,645,491 $6,181,422 $ 2,160,640
===========================================================================
</TABLE>
2000 Annual Report o Delaware Pooled Trust 107
<PAGE>
Delaware Pooled Trust
Statements of Changes in Net Assets continued
<TABLE>
<CAPTION>
Year Year Year
Ended Ended Ended
10/31/99 10/31/00 10/31/99
-------------------------------------------
The
Real Estate The The
Investment Intermediate Intermediate
Trust Fixed Income Fixed Income
Portfolio II Portfolio Portfolio
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Increase (Decrease) in Net Assets from Operations:
Net investment income $241,438 $ 871,227 $ 1,263,026
Net realized gain (loss) on investments
and foreign currencies (389,990) (482,037) (89,023)
Net change in unrealized appreciation/
depreciation of investments and foreign currencies 143,073 436,057 (791,314)
-------------------------------------------
Net increase (decrease) in net assets
resulting from operations (5,479) 825,247 382,689
-------------------------------------------
Distributions to Shareholders:
From net investment income (311,766) (870,627) (1,266,395)
In excess of net investment income -- -- --
From net realized gain on investments -- -- (416,649)
Return of capital -- -- --
-------------------------------------------
(311,766) (870,627) (1,683,044)
-------------------------------------------
Capital Share Transactions:
Proceeds from shares sold -- 405,758 419,171
Net asset value of shares issued upon
reinvestment of distributions 311,766 521,342 1,371,364
-------------------------------------------
311,766 927,100 1,790,535
Cost of shares repurchased (1,305,009) (10,056,109) (13,531,074)
-------------------------------------------
Increase (decrease) in net assets derived from
capital share transactions (993,243) (9,129,009) (11,740,539)
-------------------------------------------
Net Increase (Decrease) in Net Assets (1,310,488) (9,174,389) (13,040,894)
Net Assets:
Beginning of period 5,762,546 17,169,835 30,210,729
-------------------------------------------
End of period $ 4,452,058 $ 7,995,446 $ 17,169,835
===========================================
</TABLE>
See accompanying notes
108 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
<TABLE>
<CAPTION>
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/00 10/31/99 10/31/00 10/31/99 10/31/00
------------------------------------------------------------------------
The The The The The
Aggregate Aggregate High-Yield High-Yield Diversified Core
Fixed Income Fixed Income Bond Bond Fixed Income
Portfolio Portfolio Portfolio Portfolio Portfolio
------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 456,789 $ 339,444 $ 599,467 $ 1,837,010 $ 299,310
(324,895) (206,157) (1,892,640) (2,067,829) 110,588
273,646 (242,577) 1,786,529 389,595 (38,364)
------------------------------------------------------------------------
405,540 (109,290) 493,356 158,776 371,534
------------------------------------------------------------------------
(376,125) (133,460) (896,789) (2,059,368) (219,107)
-- -- -- -- --
-- (28,097) -- (376,171) --
-- -- -- -- --
------------------------------------------------------------------------
(376,125) (161,557) (896,789) (2,435,539) (219,107)
------------------------------------------------------------------------
218,704 5,628,319 2 2,550,000 4,000,003
376,125 161,831 806,742 2,381,430 219,107
------------------------------------------------------------------------
594,829 5,790,150 806,744 4,931,430 4,219,110
(816,538) (201,160) (8,235,440) (13,640,426) (25,000)
------------------------------------------------------------------------
(221,709) 5,588,990 (7,428,696) (8,708,996) 4,194,110
------------------------------------------------------------------------
(192,294) 5,318,143 (7,832,129) (10,985,759) 4,346,537
7,467,386 2,149,243 9,719,808 20,705,567 3,377,042
------------------------------------------------------------------------
$7,275,092 $7,467,386 $ 1,887,679 $9,719,808 $7,723,579
========================================================================
</TABLE>
2000 Annual Report o Delaware Pooled Trust 109
<PAGE>
Delaware Pooled Trust
Statements of Changes in Net Assets continued
<TABLE>
<CAPTION>
Year Year 6/30/99*
Ended Ended to
10/31/99 10/31/00 10/31/99
---------------------------------------------------------------------------
The
Diversified Core The The
Fixed Income Balanced Balanced
Portfolio Portfolio Portfolio
------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets from Operations:
<S> <C> <C> <C>
Net investment income $ 217,400 $ 4,798,533 $ 1,728,607
Net realized gain (loss) on investments
and foreign currencies (110,961) (18,731,821) (11,596,969)
Net change in unrealized appreciation/
depreciation of investments and foreign currencies 54,734 10,949,837 (6,386,908)
-----------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 161,173 (2,983,451) (16,255,270)
-----------------------------------------------------------------------------
Distributions to Shareholders:
From net investment income (229,412) (2,707,507) --
In excess of net investment income -- -- --
From net realized gain on investments (120,000) -- --
Return of capital -- -- --
-----------------------------------------------------------------------------
(349,412) (2,707,507) --
-----------------------------------------------------------------------------
Capital Share Transactions:
Proceeds from shares sold -- 12,699,009 249,370,080
Net asset value of shares issued upon
reinvestment of distributions 349,412 2,707,507 --
-----------------------------------------------------------------------------
349,412 15,406,516 249,370,080
Cost of shares repurchased -- (70,896,951) (20,996,202)
-----------------------------------------------------------------------------
Increase (decrease) in net assets derived from
capital share transactions 349,412 (55,490,435) 228,373,878
-----------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 161,173 (61,181,393) 212,118,608
Net Assets:
Beginning of period 3,215,869 212,118,608 --
-----------------------------------------------------------------------------
End of period $3,377,042 $150,937,215 $212,118,608
=============================================================================
</TABLE>
* Date of commencement of operations.
See accompanying notes
110 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
<TABLE>
<CAPTION>
12/14/99* Year Year Year Year
to Ended Ended Ended Ended
10/31/00 10/31/00 10/31/99 10/31/00 10/31/99
--------------------------------------------------------------------------------
The
International The The The The
Large-Cap Global Global International International
Equity Equity Equity Equity Equity
Portfolio Portfolio Portfolio Portfolio Portfolio
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 41,997 $ 56,241 $ 60,805 $ 17,441,328 $ 13,990,210
7,007 18,573 93,020 99,621,881 13,944,668
(163,436) (97,280) 62,938 (88,565,052) 48,653,905
--------------------------------------------------------------------------------
(114,432) (22,466) 216,763 28,498,157 76,588,783
--------------------------------------------------------------------------------
(3,529) (71,181) (67,397) (11,639,781) (15,610,745)
-- -- -- -- --
-- (78,519) (39,019) (6,439,028) --
-- -- -- -- --
--------------------------------------------------------------------------------
(3,529) (149,700) (106,416) (18,078,809) (15,610,745)
--------------------------------------------------------------------------------
3,000,011 2 -- 137,765,942 216,051,402
3,529 149,700 106,416 16,895,439 14,126,837
--------------------------------------------------------------------------------
3,003,540 149,702 106,416 154,661,381 230,178,239
-- -- -- (440,057,681) (86,741,658)
--------------------------------------------------------------------------------
3,003,540 149,702 106,416 (285,396,300) 143,436,581
--------------------------------------------------------------------------------
2,885,579 (22,464) 216,763 (274,976,952) 204,414,619
-- 3,309,317 3,092,554 820,643,600 616,228,981
--------------------------------------------------------------------------------
$2,885,579 $3,286,853 $3,309,317 $545,666,648 $820,643,600
================================================================================
</TABLE>
2000 Annual Report o Delaware Pooled Trust 111
<PAGE>
Delaware Pooled Trust
Statements of Changes in Net Assets continued
<TABLE>
<CAPTION>
Year Year Year
Ended Ended Ended
10/31/00 10/31/99 10/31/00
--------------------------------------------------------------------------
The The
Labor Select Labor Select The
International International International
Equity Equity Small-Cap
Portfolio Portfolio Portfolio
------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets from Operations:
<S> <C> <C> <C>
Net investment income $ 2,171,599 $ 2,410,112 $ 76,484
Net realized gain (loss) on investments
and foreign currencies 9,789,581 4,343,511 215,790
Net change in unrealized appreciation/
depreciation of investments and foreign currencies (7,044,733) 3,614,010 (384,940)
--------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 4,916,447 10,367,633 (92,666)
--------------------------------------------------------------------------
Distributions to Shareholders:
From net investment income (3,181,899) (2,374,430) (10,588)
In excess of net investment income -- -- --
From net realized gain on investments (3,829,012) (297,145) (33,882)
Return of capital -- -- --
--------------------------------------------------------------------------
(7,010,911) (2,671,575) (44,470)
--------------------------------------------------------------------------
Capital Share Transactions:
Proceeds from shares sold 16,589,802 11,616,986 3
Net asset value of shares issued upon
reinvestment of distributions 6,977,151 2,658,603 44,470
--------------------------------------------------------------------------
23,566,953 14,275,589 44,473
Cost of shares repurchased (44,923,141) (12,057,432) --
--------------------------------------------------------------------------
Increase (decrease) in net assets derived from
capital share transactions (21,356,188) 2,218,157 44,473
--------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (23,450,652) 9,914,215 (92,663)
Net Assets:
Beginning of period 113,264,542 103,350,327 3,053,229
--------------------------------------------------------------------------
End of period $ 89,813,890 $113,264,542 $2,960,566
==========================================================================
</TABLE>
* Date of commencement of operations.
See accompanying notes
112 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
<TABLE>
<CAPTION>
7/20/99* Year Year Year Year
to Ended Ended Ended Ended
10/31/99 10/31/00 10/31/99 10/31/00 10/31/99
------------------------------------------------------------------------------------------------------------------------------------
The The The The The
International Emerging Emerging Global Global
Small-Cap Markets Markets Fixed Income Fixed Income
Portfolio Portfolio Portfolio Portfolio Portfolio
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 13,490 $ 2,253,456 $ 818,456 $ 31,953,281 $ 36,911,453
28,537 1,487,370 (1,079,017) (48,290,131) (10,036,848)
11,194 (20,512,895) 9,629,090 (37,056,515) (42,187,937)
------------------------------------------------------------------------------------------------------------------------------------
53,221 (16,772,069) 9,368,529 (53,393,365) (15,313,332)
------------------------------------------------------------------------------------------------------------------------------------
-- (1,235,526) (757,599) (6,910,627) (26,277,531)
-- -- -- (5,888,371) --
-- -- -- -- (7,312,894)
-- -- -- (9,314,740) --
------------------------------------------------------------------------------------------------------------------------------------
-- (1,235,526) (757,599) (22,113,738) (33,590,425)
------------------------------------------------------------------------------------------------------------------------------------
3,000,008 100,459,209 -- 33,461,524 47,949,132
-- 1,235,526 746,842 17,550,777 29,109,337
------------------------------------------------------------------------------------------------------------------------------------
3,000,008 101,694,735 746,842 51,012,301 77,058,469
-- (11,502,731) (594,092) (206,010,504) (69,100,110)
------------------------------------------------------------------------------------------------------------------------------------
3,000,008 90,192,004 152,750 (154,998,203) 7,958,359
------------------------------------------------------------------------------------------------------------------------------------
3,053,229 72,184,409 8,763,680 (230,505,306) (40,945,398)
-- 42,794,023 34,030,343 619,795,310 660,740,708
------------------------------------------------------------------------------------------------------------------------------------
$3,053,229 $114,978,432 $42,794,023 $389,290,004 $619,795,310
====================================================================================================================================
</TABLE>
2000 Annual Report o Delaware Pooled Trust 113
<PAGE>
Delaware Pooled Trust
Statements of Changes in Net Assets continued
<TABLE>
<CAPTION>
Year Year
Ended Ended
10/31/00 10/31/99
------------------------------------------
The The
International International
Fixed Income Fixed Income
Portfolio Portfolio
--------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets from Operations:
<S> <C> <C>
Net investment income $ 4,067,115 $5,130,951
Net realized loss on investments
and foreign currencies (8,760,741) (1,029,635)
Net change in unrealized appreciation/
depreciation of investments and foreign currencies (5,684,412) (7,028,113)
------------------------------------------
Net decrease in net assets
resulting from operations (10,378,038) (2,926,797)
------------------------------------------
Distributions to Shareholders:
From net investment income (3,074,804) (3,852,952)
In excess of net investment income (514,959) --
From net realized gain on investments -- (630,553)
Return of capital (480,778) --
------------------------------------------
(4,070,541) (4,483,505)
------------------------------------------
Capital Share Transactions:
Proceeds from shares sold 20,376,856 14,381,982
Net asset value of shares issued upon
reinvestment of distributions 4,035,382 4,476,704
------------------------------------------
24,412,238 18,858,686
Cost of shares repurchased (48,925,352) (10,094,116)
------------------------------------------
Increase (decrease) in net assets derived from
capital share transactions (24,513,114) 8,764,570
------------------------------------------
Net Increase (Decrease) in Net Assets (38,961,693) 1,354,268
Net Assets:
Beginning of period 89,350,807 87,996,539
------------------------------------------
End of period $ 50,389,114 $89,350,807
==========================================
</TABLE>
See accompanying notes
114 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
Delaware Pooled Trust
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout each period
were as follows:
The Large-Cap Value Equity Portfolio
<TABLE>
<CAPTION>
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $16.260 $17.780 $18.530 $16.460 $14.660
Income from investment operations:
Net investment income(1) 0.267 0.311 0.308 0.381 0.440
Net realized and unrealized gain on investments 0.592 0.629 2.022 3.599 2.960
-----------------------------------------------------------
Total from investment operations 0.859 0.940 2.330 3.980 3.400
-----------------------------------------------------------
Less dividends and distributions:
Dividends from net investment income (0.310) (0.320) (0.380) (0.410) (0.440)
Distributions from net realized gain
on investments (1.439) (2.140) (2.700) (1.500) (1.160)
-----------------------------------------------------------
Total dividends and distributions (1.749) (2.460) (3.080) (1.910) (1.600)
-----------------------------------------------------------
Net asset value, end of period $15.370 $16.260 $17.780 $18.530 $16.460
===========================================================
Total return(2) 6.42% 5.43% 13.50% 26.73% 24.87%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $82,882 $141,410 $117,858 $81,102 $67,179
Ratio of expenses to average net assets 0.68% 0.64% 0.68% 0.66% 0.67%
Ratio of expenses to average net assets
prior to expense limitation and expenses
paid indirectly 0.75% 0.64% 0.71% 0.67% 0.70%
Ratio of net investment income to average
net assets 1.89% 1.84% 1.91% 2.15% 2.85%
Ratio of net investment income to average
net assets prior to expense limitation and
expenses paid indirectly 1.82% 1.84% 1.88% 2.14% 2.83%
Portfolio turnover 56% 96% 85% 73% 74%
</TABLE>
--------------------------------------------------------------------------------
(1) Per share information for the year ended October 31, 2000 was based on the
average shares outstanding method.
(2) Total investment return is based on the change in net asset value of a share
during the period and assumes reinvestment of distributions at net asset value.
See accompanying notes
2000 Annual Report o Delaware Pooled Trust 115
<PAGE>
Delaware Pooled Trust
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout each period
were as follows:
The Equity Income Portfolio
Year 6/30/99(1)
Ended to
10/31/00 10/31/99
--------------------------------------------------------------------------------
Net asset value, beginning of period $7.910 $8.500
Income (loss) from investment operations:
Net investment income(2) 0.214 0.069
Net realized and unrealized gain (loss)
on investments 0.243 (0.659)
---------------------
Total from investment operations 0.457 (0.590)
---------------------
Less dividends and distributions:
Dividends from net investment income (0.117) --
Distributions from net realized gain
on investments -- --
---------------------
Total dividends and distributions (0.117) --
---------------------
Net asset value, end of period $ 8.250 $7.910
=====================
Total return(3) 5.90% (6.94%)
Ratios and supplemental data:
Net assets, end of period (000 omitted) $106,980 $144,281
Ratio of expenses to average net assets 0.65% 0.71%
Ratio of expenses to average net assets
prior to expense limitation and
expenses paid indirectly 0.72% 0.76%
Ratio of net investment income to average
net assets 2.83% 2.54%
Ratio of net investment income to average
net assets prior to expense limitation and
expenses paid indirectly 2.76% 2.46%
Portfolio turnover 79% 87%
--------------------------------------------------------------------------------
(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, 2000 was based on the
average shares outstanding method.
(3) Total investment return is based on the change in net asset value of a share
during the period and assumes reinvestment of distributions at net asset value.
See accompanying notes
116 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
Delaware Pooled Trust
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout each period
were as follows:
The Core Equity Portfolio
Year Year 9/15/98(1)
Ended Ended to
10/31/00 10/31/99 10/31/98
--------------------------------------------------------------------------------
Net asset value, beginning of period $9.070 $8.970 $8.500
Income (loss) from investment operations:
Net investment income(2) 0.073 0.069 0.012
Net realized and unrealized gain (loss)
on investments (0.530) 0.056 0.458
----------------------------
Total from investment operations (0.457) 0.125 0.470
----------------------------
Less dividends and distributions:
Dividends from net investment income (0.073) (0.025) --
Distributions from net realized gain
on investments -- -- --
----------------------------
Total dividends and distributions (0.073) (0.025) --
----------------------------
Net asset value, end of period $8.540 $9.070 $8.970
============================
Total return(3) (5.17%) 1.49% 5.53%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $2,031 $2,593 $2,112
Ratio of expenses to average net assets 0.68% 0.68% 0.68%
Ratio of expenses to average net assets
prior to expense limitation and
expenses paid indirectly 1.00% 1.29% 1.74%
Ratio of net investment income to average
net assets 0.83% 0.78% 1.15%
Ratio of net investment income to average
net assets prior to expense limitation and
expenses paid indirectly 0.51% 0.17% 0.09%
Portfolio turnover 148% 92% 53%
--------------------------------------------------------------------------------
(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, 2000 was based on the
average shares outstanding method.
(3) Total investment return is based on the change in net asset value of a share
during the period and assumes reinvestment of distributions at net asset value.
See accompanying notes
2000 Annual Report o Delaware Pooled Trust 117
<PAGE>
Delaware Pooled Trust
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout the period
was as follows:
The Select Equity Portfolio
Year 6/29/99(1)
Ended to
10/31/00 10/31/99
--------------------------------------------------------------------------------
Net asset value, beginning of period $8.590 $8.500
Income (loss) from investment operations:
Net investment income (loss)(2) 0.277 (0.005)
Net realized and unrealized gain (loss)
on investments (0.117) 0.095
------------------
Total from investment operations 0.160 0.090
------------------
Less dividends and distributions:
Dividends from net investment income -- --
Distributions from net realized gain
on investments -- --
------------------
Total dividends and distributions -- --
------------------
Net asset value, end of period $8.750 $8.590
==================
Total return(3) 1.63% 1.06%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $2,058 $4,709
Ratio of expenses to average net assets 1.20% 1.20%
Ratio of expenses to average net assets
prior to expense limitation and
expenses paid indirectly 1.70% 1.66%
Ratio of net investment income (loss) to average
net assets(4) 3.17% (0.18%)
Ratio of net investment income (loss) to average
net assets prior to expense limitation and
expenses paid indirectly(4) 2.67% (0.66%)
Portfolio turnover 326% 235%
--------------------------------------------------------------------------------
(1) Date of commencement of operations; ratios have been annualized and total
return has not been annualized.
(2) Per share information was based on the average shares outstanding method.
(3) Total investment return is based on the change in net asset value of a share
during the period and assumes reinvestment of distributions at net asset value.
(4) During the fiscal year ended October 31, 2000, The Select Equity Portfolio
received a non-cash dividend of approximately $0.28 per share as a result of a
corporate action of an investment held by the Portfolio. This is highly unusual
and not likely to be repeated. Absent this dividend, the ratio of net investment
income to average net assets and ratio of net investment income to average net
assets prior to expense limitation and expenses paid indirectly would have been
0.00% and (0.49%), respectively.
See accompanying notes
118 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
Delaware Pooled Trust
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout each period
were as follows:
The All-Cap Growth Equity Portfolio
3/31/00(1)
to
10/31/00
--------------------------------------------------------------------------------
Net asset value, beginning of period $ 8.500
Income (loss) from investment operations:
Net investment loss(2) (0.005)
Net realized and unrealized gain on investments 0.275
-------
Total from investment operations 0.270
-------
Less dividends and distributions:
Dividends from net investment income --
Distributions from net realized gain on investments --
-------
Total dividends and distributions --
-------
Net asset value, end of period $ 8.770
=======
Total return(3) 3.18%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $13,139
Ratio of expenses to average
net assets 0.89%
Ratio of expenses to average
net assets prior to expense limitation
and expenses paid indirectly 1.10%
Ratio of net investment loss to average
net assets (0.09%)
Ratio of net investment loss to average
net assets prior to expense limitation and
expenses paid indirectly (0.30%)
Portfolio turnover 138%
--------------------------------------------------------------------------------
(1) Date of commencement of operations; ratios have been annualized and total
return has not been annualized.
(2) Per share information was based on the average shares outstanding method.
(3) Total investment return is based on the change in net asset value of a share
during the period and assumes reinvestment of distributions at net asset value.
See accompanying notes
Delaware Pooled Trust o 2000 Annual Report 119
<PAGE>
Delaware Pooled Trust
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
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 8.740 $7.460 $13.680 $14.570 $12.860
Income (loss) from investment operations:
Net investment income (loss)(1) (0.061) (0.026) 0.011 (0.117) (0.019)
Net realized and unrealized gain
on investments 4.523 3.076 0.009 1.607 2.392
----------------------------------------------------------
Total from investment operations 4.462 3.050 0.020 1.490 2.373
----------------------------------------------------------
Less dividends and distributions:
Dividends from net investment income -- (0.010) -- -- (0.043)
Distributions from net realized gain
on investments (0.812) (1.760) (6.240) (2.380) (0.620)
----------------------------------------------------------
Total dividends and distributions (0.812) (1.770) (6.240) (2.380) (0.663)
----------------------------------------------------------
Net asset value, end of period $12.390 $8.740 $ 7.460 $13.680 $14.570
==========================================================
Total return(2) 53.86% 48.72% 1.47% 11.84% 19.19%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $ 6,506 $6,949 $ 4,879 $10,317 $28,526
Ratio of expenses to average net assets 0.92% 0.93% 0.59% 0.93% 0.90%
Ratio of expenses to average net assets
prior to expense limitation and
expenses paid indirectly 1.04% 1.04% 1.71% 1.40% 1.01%
Ratio of net investment income (loss) to
average net assets (0.52%) (0.34%) 0.13% (0.29%) (0.18%)
Ratio of net investment loss to average
net assets prior to expense limitation and
expenses paid indirectly (0.64%) (0.46%) (0.99%) (0.76%) (0.29%)
Portfolio turnover 137% 129% 154% 117% 95%
</TABLE>
--------------------------------------------------------------------------------
(1) Per share information for the years ended October 31, 1999 and 2000 was
based on the average shares outstanding method.
(2) Total investment return is based on the change in net asset value of a share
during the period and assumes reinvestment of distributions at net asset value.
See accompanying notes
120 2000 Annual Report o Delaware Pooled Trust
<PAGE>
Delaware Pooled Trust
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout each period
were as follows:
The Small-Cap Value Equity Portfolio
Year 3/29/99(1)
Ended to
10/31/00 10/31/99
--------------------------------------------------------------------------------
Net asset value, beginning of period $8.650 $8.500
Income from investment operations:
Net investment income(2) 0.106 0.063
Net realized and unrealized gain
on investments 0.779 0.087
----------------------
Total from investment operations 0.885 0.150
----------------------
Less dividends and distributions:
Dividends from net investment income (0.085) --
Distributions from net realized gain
on investments (0.220) --
----------------------
Total dividends and distributions (0.305) --
----------------------
Net asset value, end of period $9.230 $8.650
======================
Total return(3) 10.72% 1.77%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $2,254 $2,035
Ratio of expenses to average net assets 0.89% 0.89%
Ratio of expenses to average net assets
prior to expense limitation and
expenses paid indirectly 1.24% 1.24%
Ratio of net investment income to average
net assets 1.23% 1.16%
Ratio of net investment income to average
net assets prior to expense limitation and
expenses paid indirectly 0.88% 0.80%
Portfolio turnover 90% 37%
--------------------------------------------------------------------------------
(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, 2000 was based on the
average shares outstanding method.
(3) Total investment return is based on the change in net asset value of a share
during the period and assumes reinvestment of distributions at net asset value.
See accompanying notes
Delaware Pooled Trust o 2000 Annual Report 121
<PAGE>
Delaware Pooled Trust
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout each period
were as follows:
2000 Annual Report o Delaware Pooled Trust#
Delaware Pooled Trust
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout each period
were as follows:
The Small-Cap Growth Equity Portfolio
<TABLE>
<CAPTION>
Year Year 9/15/98(1)
Ended Ended to
10/31/00 10/31/99 10/31/98
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $14.190 $9.400 $8.500
Income (loss) from investment operations:
Net investment income (loss)(2) (0.028) 0.004 0.019
Net realized and unrealized gain
on investments 6.358 4.811 0.881
--------------------------------
Total from investment operations 6.330 4.815 0.900
--------------------------------
Less dividends and distributions:
Dividends from net investment income -- (0.025) --
Distributions from net realized gain
on investments (1.570) -- --
--------------------------------
Total dividends and distributions (1.570) (0.025) --
--------------------------------
Net asset value, end of period $18.950 $14.190 $9.400
================================
Total return(3) 47.57% 51.31% 10.59%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $37,645 $6,181 $3,318
Ratio of expenses to average net assets 0.85% 0.89% 0.89%
Ratio of expenses to average net assets
prior to expense limitation and
expenses paid indirectly 0.87% 1.19% 1.78%
Ratio of net investment income (loss) to
average net assets (0.15%) 0.03% 1.72%
Ratio of net investment income (loss) to
average net assets prior to expense
limitation and expenses paid indirectly (0.17%) (0.28%) 0.83%
Portfolio turnover 70% 92% 98%
</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, 2000 was based on the
average shares outstanding method.
(3) Total investment return is based on the change in net asset value of a share
during the period and assumes reinvestment of distributions at net asset value.
See accompanying notes
122 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
Delaware Pooled Trust
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout each period
were as follows:
The Real Estate Investment Trust Portfolio II
<TABLE>
<CAPTION>
Year Year 11/4/97(1)
Ended Ended to
10/31/00 10/31/99 10/31/98
------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $13.190 $14.230 $16.340
Income (loss) from investment operations:
Net investment income(2) 0.592 0.687 0.749
Net realized and unrealized gain (loss)
on investments 2.606 (0.957) (2.739)
--------------------------------
Total from investment operations 3.198 (0.270) (1.990)
--------------------------------
Less dividends and distributions:
Dividends from net investment income (0.708) (0.770) (0.120)
Distributions from net realized gain
on investments -- -- --
--------------------------------
Total dividends and distributions (0.708) (0.770) (0.120)
--------------------------------
Net asset value, end of period $15.680 $13.190 $14.230
================================
Total return(3) 25.78% (2.08%) (12.27%)
Ratios and supplemental data:
Net assets, end of period (000 omitted) $2,161 $4,452 $5,763
Ratio of expenses to average net assets 0.86% 0.86% 0.86%
Ratio of expenses to average net assets
prior to expense limitation and
expenses paid indirectly 1.45% 1.48% 1.43%
Ratio of net investment income to
average net assets 4.27% 4.52% 5.34%
Ratio of net investment income to
average net assets prior to expense
limitation and expenses paid indirectly 3.68% 3.90% 4.77%
Portfolio turnover 32% 39% 54%
</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, 2000 was based on the
average shares outstanding method.
(3) Total investment return is based on the change in net asset value of a share
during the period and assumes reinvestment of distributions at net asset value.
See accompanying notes
2000 Annual Report o Delaware Pooled Trust 123
<PAGE>
Delaware Pooled Trust
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 Year Year 3/12/96(1)
Ended Ended Ended Ended to
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $9.540 $10.180 $10.090 $10.010 $10.000
Income (loss) from investment operations:
Net investment income 0.613 0.604 0.593 0.605 0.386
Net realized and unrealized gain (loss)
on investments 0.030 (0.480) 0.100 0.080 0.010
---------------------------------------------------------
Total from investment operations 0.643 0.124 0.693 0.685 0.396
---------------------------------------------------------
Less dividends and distributions:
Dividends from net investment income (0.613) (0.604) (0.593) (0.605) (0.386)
Distributions from net realized gain
on investments -- (0.160) (0.010) -- --
---------------------------------------------------------
Total dividends and distributions (0.613) (0.764) (0.603) (0.605) (0.386)
---------------------------------------------------------
Net asset value, end of period $9.570 $ 9.540 $10.180 $10.090 $10.010
=========================================================
Total return(2) 7.01% 1.26% 7.06% 7.09% 4.08%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $7,995 $17,170 $30,211 $30,366 $10,518
Ratio of expenses to average
net assets 0.53% 0.54% 0.53% 0.53% 0.53%
Ratio of expenses to average
net assets prior to expense limitation and
expenses paid indirectly 0.59% 0.77% 1.01% 0.84% 1.20%
Ratio of net investment income to average
net assets 6.46% 6.10% 5.86% 6.05% 6.14%
Ratio of net investment income to average
net assets prior to expense limitation and
expenses paid indirectly 6.40% 5.86% 5.38% 5.74% 5.47%
Portfolio turnover 125% 148% 181% 205% 232%
</TABLE>
--------------------------------------------------------------------------------
(1) Date of commencement of operations; ratios have been annualized and total
return has not been annualized.
(2) Total investment return is based on the change in net asset value of a share
during the period and assumes reinvestment of distributions at net asset value.
See accompanying notes
124 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
Delaware Pooled Trust
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout each period
were as follows:
The Aggregate Fixed Income Portfolio
<TABLE>
<CAPTION>
Year Year 12/29/97(1)
Ended Ended to
10/31/00 10/31/99 10/31/98
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $8.820 $9.130 $8.500
Income (loss) from investment operations:
Net investment income(2) 0.545 0.485 0.415
Net realized and unrealized gain (loss)
on investments (0.053) (0.565) 0.215
-------------------------------
Total from investment operations 0.492 (0.080) 0.630
-------------------------------
Less dividends and distributions:
Dividends from net investment income (0.442) (0.190) --
Distributions from net realized gain
on investments -- (0.040) --
-------------------------------
Total dividends and distributions (0.442) (0.230) --
-------------------------------
Net asset value, end of period $8.870 $8.820 $9.130
===============================
Total return(3) 5.88% (0.94%) 7.41%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $7,275 $7,467 $2,149
Ratio of expenses to average net assets 0.51% 0.59% 0.53%
Ratio of expenses to average net assets
prior to expense limitation and
expenses paid indirectly 0.52% 0.67% 2.07%
Ratio of net investment income to average
net assets 6.34% 5.48% 5.62%
Ratio of net investment income to average
net assets prior to expense limitation and
expenses paid indirectly 6.33% 5.33% 4.08%
Portfolio turnover 165% 275% 438%
</TABLE>
--------------------------------------------------------------------------------
(1) Date of commencement of operations; ratios have been annualized and total
return has not been annualized.
(2) Per share information for the years ended October 31, 2000 and 1999 was
based on the average shares outstanding method.
(3) Total investment return is based on the change in net asset value of a share
during the period and assumes reinvestment of distributions at net asset value.
See accompanying notes
2000 Annual Report o Delaware Pooled Trust 125
<PAGE>
Delaware Pooled Trust
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout each period
were as follows:
The High-Yield Bond Portfolio
<TABLE>
<CAPTION>
Year Year Year 12/2/96(1)
Ended Ended Ended to
10/31/00 10/31/99 10/31/98 10/31/97
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $8.830 $10.070 $11.180 $10.000
Income (loss) from investment operations:
Net investment income(2) 0.868 1.080 0.993 0.788
Net realized and unrealized gain (loss)
on investments (0.488) (1.140) (0.925) 0.957
-------------------------------------------
Total from investment operations 0.380 (0.060) 0.068 1.745
-------------------------------------------
Less dividends and distributions:
Dividends from net investment income (1.090) (1.000) (0.890) (0.565)
Distributions from net realized gain
on investments -- (0.180) (0.288) --
-------------------------------------------
Total dividends and distributions (1.090) (1.180) (1.178) (0.565)
-------------------------------------------
Net asset value, end of period $8.120 $8.830 $10.070 $11.180
===========================================
Total return(3) 4.02% (1.05%) 0.30% 17.92%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $1,888 $9,720 $20,706 $11,348
Ratio of expenses to average net assets 0.59% 0.59% 0.59% 0.59%
Ratio of expenses to average net assets
prior to expense limitation and
expenses paid indirectly 1.08% 0.78% 0.75% 0.79%
Ratio of net investment income to average
net assets 9.97% 9.25% 9.53% 9.05%
Ratio of net investment income to average
net assets prior to expense limitation and
expenses paid indirectly 9.48% 9.06% 9.37% 8.85%
Portfolio turnover 140% 455% 211% 281%
</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, 2000 was based on the
average shares outstanding method.
(3) Total investment return is based on the change in net asset value of a share
during the period and assumes reinvestment of distributions at net asset value.
See accompanying notes
126 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
Delaware Pooled Trust
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout the period
was as follows:
The Diversified Core Fixed Income Portfolio
<TABLE>
<CAPTION>
Year Year 12/29/97(1)
Ended Ended to
10/31/00 10/31/99 10/31/98
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $8.550 $9.110 $8.500
Income (loss) from investment operations:
Net investment income(2) 0.528 0.560 0.533
Net realized and unrealized gain (loss)
on investments and foreign currencies 0.077 (0.130) 0.077
-------------------------------
Total from investment operations 0.605 0.430 0.610
-------------------------------
Less dividends and distributions:
Dividends from net investment income (0.555) (0.650) --
Distributions from net realized gain
on investments -- (0.340) --
-------------------------------
Total dividends and distributions (0.555) (0.990) --
-------------------------------
Net asset value, end of period $8.600 $8.550 $9.110
===============================
Total return(3) 7.59% 4.98% 7.18%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $7,724 $3,377 $3,216
Ratio of expenses to average net assets 0.54% 0.57% 0.57%
Ratio of expenses to average net assets
prior to expense limitation and expenses
paid indirectly 0.61% 0.84% 1.74%
Ratio of net investment income
to average net assets 6.35% 6.56% 7.12%
Ratio of net investment income to average
net assets prior to expense limitation and
expenses paid indirectly 6.28% 6.29% 5.95%
Portfolio turnover 143% 216% 312%
</TABLE>
--------------------------------------------------------------------------------
(1) Date of commencement of operations; ratios have been annualized and total
return has not been annualized.
(2) Per share information was based on the average shares outstanding method.
(3) Total investment return is based on the change in net asset value of a share
during the period and assumes reinvestment of distributions at net asset value.
See accompanying notes
2000 Annual Report o Delaware Pooled Trust 127
<PAGE>
Delaware Pooled Trust
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout each period
were as follows:
The Balanced Portfolio
Year 6/30/99(1)
Ended to
10/31/00 10/31/99
--------------------------------------------------------------------------------
Net asset value, beginning of period $ 7.910 $ 8.500
Income (loss) from investment operations:
Net investment income(2) 0.219 0.063
Net realized and unrealized loss
on investments (0.292) (0.653)
---------------------
Total from investment operations (0.073) (0.590)
---------------------
Less dividends and distributions:
Dividends from net investment income (0.107) --
Distributions from net realized gain
on investments -- --
---------------------
Total dividends and distributions (0.107) --
---------------------
Net asset value, end of period $ 7.730 $ 7.910
=====================
Total return(3) (1.04%) (6.82%)
Ratios and supplemental data:
Net assets, end of period (000 omitted) $150,937 $212,119
Ratio of expenses to average net assets 0.66% 0.72%
Ratio of expenses to average net assets
prior to expense limitation and
expenses paid indirectly 0.72% 0.78%
Ratio of net investment income to average
net assets 2.85% 2.30%
Ratio of net investment income to average
net assets prior to expense limitation and
expenses paid indirectly 2.79% 2.20%
Portfolio turnover 148% 145%
--------------------------------------------------------------------------------
(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, 2000 was based on the
average shares outstanding method.
(3) Total investment return is based on the change in net asset value of a share
during the period and assumes reinvestment of distributions at net asset value.
See accompanying notes
128 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
Delaware Pooled Trust
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout each period
were as follows:
The International Large-Cap Equity Portfolio
12/14/99(1)
to
10/31/00
------------------------------------------------------------------------
Net asset value, beginning of period $8.500
Income (loss) from investment operations:
Net investment income(2) 0.119
Net realized and unrealized loss
on investments and foreign currencies (0.439)
------
Total from investment operations (0.320)
------
Less dividends and distributions:
Dividends from net investment income (0.010)
Distributions from net realized gain
on investments --
------
Total dividends and distributions (0.010)
------
Net asset value, end of period $8.170
======
Total return(3) (3.78%)
Ratios and supplemental data:
Net assets, end of period (000 omitted) $2,886
Ratio of expenses to average net assets 0.96%
Ratio of expenses to average net assets
prior to expense limitation and
expenses paid indirectly 1.38%
Ratio of net investment income to average
net assets 1.62%
Ratio of net investment income to average
net assets prior to expense limitation and
expenses paid indirectly 1.20%
Portfolio turnover 6%
--------------------------------------------------------------------------------
(1) Date of commencement of operations; ratios have been annualized and total
return has not been annualized.
(2) Per share information was based on the average shares outstanding method.
(3) Total investment return is based on the change in net asset value of a share
during the period and assumes reinvestment of distributions at net asset value.
The Portfolio also charges a 0.45% purchase reimbursement fee and a 0.35%
redemption reimbursement fee and these fees are not reflected in the returns
shown above. The Portfolio's returns would have been lower had these fees been
deducted.
See accompanying notes
2000 Annual Report o Delaware Pooled Trust 129
<PAGE>
Delaware Pooled Trust
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout each period
were as follows:
The Global Equity Portfolio
<TABLE>
<CAPTION>
Year Year Year 10/15/97(1)
Ended Ended Ended to
10/31/00 10/31/99 10/31/98 10/31/97
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $9.020 $8.720 $8.120 $8.500
Income (loss) from investment operations:
Net investment income(2) 0.147 0.167 0.184 0.009
Net realized and unrealized gain (loss)
on investments and foreign currencies (0.199) 0.433 0.486 (0.389)
-------------------------------------------
Total from investment operations (0.052) 0.600 0.670 (0.380)
-------------------------------------------
Less dividends and distributions:
Dividends from net investment income (0.194) (0.190) (0.070) --
Distributions from net realized gain on investments (0.214) (0.110) -- --
-------------------------------------------
Total dividends and distributions (0.408) (0.300) (0.070) --
-------------------------------------------
Net asset value, end of period $8.560 $9.020 $8.720 $8.120
===========================================
Total return(3) (0.81%) 7.11% 8.31% (4.47%)
Ratios and supplemental data:
Net assets, end of period (000 omitted) $3,287 $3,309 $3,093 $2,855
Ratio of expenses to average net assets 0.96% 0.96% 0.96% 0.96%
Ratio of expenses to average net assets
prior to expense limitation and
expenses paid indirectly 1.30% 1.89% 2.31% 2.95%
Ratio of net investment income to average
net assets 1.69% 1.82% 2.10% 2.54%
Ratio of net investment income to average
net assets prior to expense limitation and
expenses paid indirectly 1.35% 0.89% 0.75% 0.55%
Portfolio turnover 34% 31% 47% 0%
</TABLE>
--------------------------------------------------------------------------------
(1) Date of commencement of operations; ratios have been annualized and total
return has not been annualized.
(2) Per share information for the years ended October 31, 1998, 1999 and 2000
was based on the average shares outstanding method.
(3) Total investment return is based on the change in net asset value of a share
during the period and assumes reinvestment of distributions at net asset value.
The Portfolio also charges a 0.40% purchase reimbursement fee and a 0.30%
redemption reimbursement fee and these fees are not reflected in the returns
shown above. The Portfolio's returns would have been lower had these fees been
deducted.
See accompanying notes
130 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
Delaware Pooled Trust
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout each period
were as follows:
The International Equity Portfolio
<TABLE>
<CAPTION>
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 17.410 $ 15.870 $ 15.860 $ 14.780 $ 13.120
Income from investment operations:
Net investment income(1) 0.379 0.329 0.400 0.329 0.506
Net realized and unrealized gain
on investments and foreign currencies 0.216 1.596 0.370 1.271 1.794
----------------------------------------------------------
Total from investment operations 0.595 1.925 0.770 1.600 2.300
----------------------------------------------------------
Less dividends and distributions:
Dividends from net investment income (0.235) (0.385) (0.610) (0.520) (0.490)
Distributions from net realized gain
on investments (0.130) -- (0.150) -- (0.150)
----------------------------------------------------------
Total dividends and distributions (0.365) (0.385) (0.760) (0.520) (0.640)
----------------------------------------------------------
Net asset value, end of period $ 17.640 $ 17.410 $ 15.870 $ 15.860 $ 14.780
==========================================================
Total return(2) 3.35% 12.31% 4.96% 11.01% 18.12%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $545,667 $820,644 $616,229 $500,196 $299,950
Ratio of expenses to average net assets 0.90% 0.89% 0.91% 0.93% 0.89%
Ratio of net investment income to average
net assets 2.11% 1.91% 2.50% 2.21% 4.36%
Portfolio turnover 19% 6% 5% 8% 8%
</TABLE>
--------------------------------------------------------------------------------
(1) Per share information for the years ended October 31, 1998, 1999 and 2000
was based on the average shares outstanding method.
(2) Total investment return is based on the change in net asset value of a share
during the period and assumes reinvestment of distributions at net asset value.
See accompanying notes
2000 Annual Report o Delaware Pooled Trust 131
<PAGE>
Delaware Pooled Trust
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout each period
were as follows:
The Labor Select International Equity Portfolio
<TABLE>
<CAPTION>
Year Year Year Year 12/19/95(1)
Ended Ended Ended Ended to
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $14.330 $ 13.320 $ 12.990 $11.690 $10.000
Income from investment operations:
Net investment income(2) 0.277 0.305 0.334 0.474 0.479
Net realized and unrealized gain
on investments and foreign currencies 0.175 1.057 0.444 1.346 1.311
---------------------------------------------------------
Total from investment operations 0.452 1.362 0.778 1.820 1.790
---------------------------------------------------------
Less dividends and distributions:
Dividends from net investment income (0.392) (0.312) (0.448) (0.520) (0.100)
Distributions from net realized gain
on investments (0.470) (0.040) -- -- --
---------------------------------------------------------
Total dividends and distributions (0.862) (0.352) (0.448) (0.520) (0.100)
---------------------------------------------------------
Net asset value, end of period $13.920 $ 14.330 $ 13.320 $12.990 $11.690
=========================================================
Total return(3) 3.07% 10.34% 6.18% 16.01% 17.97%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $89,814 $113,265 $103,350 $50,896 23,154
Ratio of expenses to average net assets 0.95% 0.83% 0.88% 0.89% 0.92%
Ratio of expenses to average net assets
prior to expense limitation and
expenses paid indirectly 0.96% 0.83% 0.93% 1.06% 1.30%
Ratio of net investment income to average
net assets 1.96% 2.13% 2.46% 2.37% 6.64%
Ratio of net investment income to average
net assets prior to expense limitation and
expenses paid indirectly 1.95% 2.13% 2.41% 2.20% 6.26%
Portfolio turnover 20% 12% 2% 11% 7%
</TABLE>
--------------------------------------------------------------------------------
(1) Date of commencement of operations; ratios have been annualized and total
return has not been annualized.
(2) Per share information for the years ended October 31, 1998, 1999 and 2000
was based on the average shares outstanding method.
(3) Total investment return is based on the change in net asset value of a share
during the period and assumes reinvestment of distributions at net asset value.
See accompanying notes
132 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
Delaware Pooled Trust
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout each period
were as follows:
The International Small-Cap Portfolio
Year 7/20/99(1)
Ended to
10/31/00 10/31/99
--------------------------------------------------------------------------------
Net asset value, beginning of period $8.650 $8.500
Income (loss) from investment operations:
Net investment income(2) 0.214 0.039
Net realized and unrealized gain (loss)
on investments and foreign currencies (0.478) 0.111
------------------
Total from investment operations (0.264) 0.150
------------------
Less dividends and distributions:
Dividends from net investment income (0.030) --
Distributions from net realized gain
on investments (0.096) --
------------------
Total dividends and distributions (0.126) --
------------------
Net asset value, end of period $8.260 $8.650
==================
Total return(3) (2.96%) 1.77%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $2,961 $3,053
Ratio of expenses to average net assets 1.20% 1.25%
Ratio of expenses to average net assets
prior to expense limitation and
expenses paid indirectly 1.36% 1.28%
Ratio of net investment income to average
net assets 2.58% 1.55%
Ratio of net investment income to average
net assets prior to expense limitation and
expenses paid indirectly 2.42% 1.45%
Portfolio turnover 23% 15%
--------------------------------------------------------------------------------
(1) Date of commencement of operations; ratios have been annualized and total
return has not been annualized.
(2) Per share information was based on the average shares outstanding method.
(3) Total investment return is based on the change in net asset value of a share
during the period and assumes reinvestment of distributions at net asset value.
The Portfolio also charges a 0.55% purchase reimbursement fee and a 0.45%
redemption reimbursement fee and these fees are not reflected in the returns
shown above. The Portfolio's returns would have been lower had these fees been
deducted.
See accompanying notes
2000 Annual Report o Delaware Pooled Trust 133
<PAGE>
Delaware Pooled Trust
Financial Highlights
Selected data for each share of the Portfolio outstanding throughout each period
were as follows:
The Emerging Markets Portfolio
<TABLE>
<CAPTION>
Year Year Year 4/14/97(1)
Ended Ended Ended to
10/31/00 10/31/99 10/31/98 10/31/97
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 7.280 $ 5.840 $ 9.200 $10.000
Income (loss) from investment operations:
Net investment income(2) 0.160 0.138 0.153 0.028
Net realized and unrealized gain (loss)
on investments and foreign currencies (0.326) 1.432 (3.348) (0.828)
----------------------------------------------
Total from investment operations (0.166) 1.570 (3.195) (0.800)
----------------------------------------------
Less dividends and distributions:
Dividends from net investment income (0.104) (0.130) (0.025) --
Distributions from net realized gain
on investments -- -- (0.140) --
----------------------------------------------
Total dividends and distributions (0.104) (0.130) (0.165) --
----------------------------------------------
Net asset value, end of period $ 7.010 $ 7.280 $ 5.840 $ 9.200
==============================================
Total return(3) (2.40%) 27.63% (35.30%) (8.00%)
Ratios and supplemental data:
Net assets, end of period (000 omitted) $114,978 $42,794 $34,030 $18,565
Ratio of expenses to average net assets 1.17% 1.31% 1.55% 1.55%
Ratio of expenses to average net assets
prior to expense limitation and
expenses paid indirectly 1.17% 1.35% 1.69% 2.02%
Ratio of net investment income to average
net assets 1.93% 2.13% 1.98% 0.74%
Ratio of net investment income to average
net assets prior to expense limitation and
expenses paid indirectly 1.93% 2.08% 1.84% 0.27%
Portfolio turnover 20% 23% 39% 46%
</TABLE>
--------------------------------------------------------------------------------
(1) Date of commencement of operations; ratios have been annualized and total
return has not been annualized.
(2) Per share information for the years ended October 31, 1998, 1999 and 2000
was based on the average shares outstanding method.
(3) Total investment return is based on the change in net asset value of a share
during the period and assumes reinvestment of distributions at net asset value.
The Portfolio also charges a 0.75% purchase reimbursement fee and a 0.75%
redemption reimbursement fee and these fees are not reflected in the returns
shown above. The Portfolio's returns would have been lower had these fees been
deducted.
See accompanying notes
134 2000 Annual Report o Delaware Pooled Trust
<PAGE>
Delaware Pooled Trust
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
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.260 $ 11.060 $ 11.220 $ 11.620 $ 11.040
Income (loss) from investment operations:
Net investment income(1) 0.548 0.606 0.610 0.721 0.777
Net realized and unrealized gain (loss)
on investments and foreign currencies (1.498) (0.851) 0.037 (0.116) 0.725
-----------------------------------------------------------
Total from investment operations (0.950) (0.245) 0.647 0.605 1.502
-----------------------------------------------------------
Less dividends and distributions:
Dividends from net investment income (0.114) (0.433) (0.630) (0.835) (0.720)
In excess of net investment income (0.096) -- -- -- --
Distributions from net realized gain
on investments -- (0.122) (0.177) (0.170) (0.202)
Return of capital (0.150) -- -- -- --
-----------------------------------------------------------
Total dividends and distributions (0.360) (0.555) (0.807) (1.005) (0.922)
-----------------------------------------------------------
Net asset value, end of period $ 8.950 $ 10.260 $ 11.060 $ 11.220 $ 11.620
===========================================================
Total return(2) (9.51%) (2.33%) 6.28% 5.59% 16.40%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $389,290 $619,795 $660,741 $431,076 $252,068
Ratio of expenses to average net assets 0.60% 0.60% 0.60% 0.60% 0.60%
Ratio of expenses to average net assets
prior to expense limitation and
expenses paid indirectly 0.71% 0.62% 0.62% 0.65% 0.66%
Ratio of net investment income to
average net assets 5.71% 5.68% 5.71% 6.28% 8.52%
Ratio of net investment income to
average net assets prior to expense
limitation and expenses paid indirectly 5.60% 5.66% 5.69% 6.23% 8.46%
Portfolio turnover 53% 101% 131% 114% 63%
</TABLE>
--------------------------------------------------------------------------------
(1) Per share information for the years ended October 31, 1998, 1999 and 2000
was based on the average shares outstanding method.
(2) Total investment return is based on the change in net asset value of a share
during the period and assumes reinvestment of distributions at net asset value.
See accompanying notes
2000 Annual Report o Delaware Pooled Trust 135
<PAGE>
Delaware Pooled Trust
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 Year Year 4/11/97(1)
Ended Ended Ended to
10/31/00 10/31/99 10/31/98 10/31/97
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.910 $10.750 $10.660 $10.000
Income (loss) from investment operations:
Net investment income(2) 0.469 0.564 0.558 0.236
Net realized and unrealized gain (loss)
on investments and foreign currencies (1.752) (0.877) 0.045 0.474
--------------------------------------------
Total from investment operations (1.283) (0.313) 0.603 0.710
--------------------------------------------
Less dividends and distributions:
Dividends from net investment income (0.400) (0.450) (0.492) (0.050)
In excess of net investment income (0.067) -- -- --
Distributions from net realized gain
on investments -- (0.077) (0.021) --
Return of capital (0.050) -- -- --
--------------------------------------------
Total dividends and distributions (0.517) (0.527) (0.513) (0.050)
--------------------------------------------
Net asset value, end of period $ 8.110 $9.910 $10.750 $10.660
============================================
Total return(3) (13.54%) (2.96%) 5.96% 7.11%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $50,389 $89,351 $87,997 $33,734
Ratio of expenses to average net assets 0.60% 0.60% 0.60% 0.60%
Ratio of expenses to average net assets
prior to expense limitation and
expenses paid indirectly 0.69% 0.64% 0.67% 0.86%
Ratio of net investment income to average
net assets 5.26% 5.48% 5.47% 6.05%
Ratio of net investment income to average
net assets prior to expense limitation and
expenses paid indirectly 5.17% 5.44% 5.40% 5.79%
Portfolio turnover 82% 127% 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 years ended October 31, 1998, 1999 and 2000
was based on the average shares outstanding method.
(3) Total investment return is based on the change in net asset value of a share
during the period and assumes reinvestment of distributions at net asset value.
See accompanying notes
136 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
Delaware Pooled Trust
Notes to Financial Statements
October 31, 2000
Delaware Pooled Trust (the "Trust") is organized as a Delaware business trust
and offers 24 separate Portfolios (collectively, the "Portfolios" and
individually a "Portfolio"). The Large-Cap Value Equity Portfolio, The Large-Cap
Growth Equity Portfolio, The Equity Income Portfolio, The Core Equity Portfolio,
The Select Equity Portfolio, The All-Cap Growth Equity Portfolio, The Mid-Cap
Growth Equity Portfolio, The Small-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,
The Aggregate Fixed Income Portfolio, The High-Yield Bond Portfolio, The
Diversified Core Fixed Income Portfolio, The Balanced Portfolio, The
International Large-Cap Equity Portfolio, The Global Equity Portfolio, The
International Equity Portfolio, The Labor Select International Equity Portfolio,
The International Small-Cap Portfolio, The Emerging Markets Portfolio, The
Global Fixed Income Portfolio and The International Fixed Income Portfolio had
commenced operations prior to October 31, 2000. These financial statements and
related notes pertain to all the portfolios with the exception of The Large-Cap
Growth Equity Portfolio and The Real Estate Investment Trust Portfolio, which
are included in separate reports. Each Portfolio is registered as a diversified
open-end investment company under the Investment Company Act of 1940, as amended
except for The Select Equity, The Real Estate Investment Trust II, The Emerging
Markets, The Global Fixed Income and The International Fixed Income Portfolios
which are non-diversified.
The investment objective of The Large-Cap Value Equity Portfolio is to seek
maximum long-term total return, consistent with reasonable risk.
The investment objective of The Equity Income Portfolio is to seek the highest
possible current income.
The investment objective of The Core Equity Portfolio is to seek capital
appreciation and income.
The investment objective of The Select Equity Portfolio is to seek to maximize
long-term capital appreciation.
The investment objective of The All-Cap Growth Equity Portfolio is to seek
long-term capital appreciation.
<PAGE>
The investment objective of The Mid-Cap Growth Equity Portfolio is to seek to
maximum long-term capital growth.
The investment objective of The Small-Cap Value Equity Portfolio is to seek
long-term capital appreciation.
The investment objective of The Small-Cap Growth Equity Portfolio is to seek
long-term capital appreciation.
The investment objective of The Real Estate Investment Trust Portfolio II is to
seek to achieve maximum long-term total return, with capital appreciation as a
secondary objective.
The investment objective of The Intermediate Fixed Income Portfolio is to seek
maximum long-term total return, consistent with reasonable risk.
The investment objective of The Aggregate Fixed Income Portfolio is to seek
maximum long-term total return, consistent with reasonable risk.
The investment objective of The High-Yield Bond Portfolio is to seek high total
return.
The investment objective of The Diversified Core Fixed Income Portfolio is to
seek maximum long-term total return, consistent with reasonable risk.
The investment objective of The Balanced Portfolio is
to seek a balance of capital appreciation, income and preservation of capital.
The investment objective of The International Large-Cap Equity Portfolio is to
seek maximum long-term total return.
The investment objective of The Global Equity Portfolio is to seek long-term
growth without undue risk to principal.
The investment objective of The International Equity Portfolio is to seek
maximum long-term total return.
The investment objective of The Labor Select International Equity Portfolio is
to seek maximum long-term total return.
The investment objective of The International Small-Cap Portfolio is to seek
long-term capital appreciation.
The investment objective of The Emerging Markets Portfolio is to seek long-term
capital appreciation.
2000 Annual Report o Delaware Pooled Trust 137
<PAGE>
The investment objective of The Global Fixed Income Portfolio is to seek current
income consistent with the preservation of principal.
The investment objective of The International Fixed Income Portfolio is to seek
current income consistent with the preservation of principal.
1. Significant Accounting Policies
The following accounting policies are in accordance with accounting principles
generally accepted in the United States and are consistently followed by the
Trust.
Security Valuation--All equity securities are valued at the last quoted sales
price as of the regular close of the New York Stock Exchange on the valuation
date. If on a particular day an equity security does not trade, then the mean
between the bid and asked prices will be used. 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 Portfolio's Board of
Trustees.
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 accounting principles generally accepted in the United States.
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 102% collateralized. However, in the
event of default or bankruptcy by the counterparty to the agreement, realization
of the collateral may be subject to legal proceedings.
<PAGE>
Foreign 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 daily. 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 that result from fluctuations in
foreign currency exchange rates in the Statement of Operations. The Portfolios
do isolate that portion of gains and losses on investments in debt securities
which are due to changes in the foreign exchange rates 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
accounting principles generally accepted in the United States requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
Other--Expenses common to all funds within the Delaware Investments Family of
Funds are allo cated 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.
Interest income is recorded on the accrual basis. Original issue discounts and
market premiums are accreted to interest income over the lives of the respective
securities. Dividend income is recorded on the ex-dividend date. During the
fiscal year ended October 31, 2000, The Select Equity Portfolio received a
non-cash dividend of approximately $79,000 as a result of a corporate action of
an investment held by the Portfolio. The dividend was recorded on the basis of
the fair market value of the securities received on the date of distribution.
Foreign dividends are also recorded on the ex-dividend date or as soon after the
ex-dividend date that the Portfolio is aware of such dividends, net of all
138 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
non-rebatable tax withholdings. Withholding taxes on foreign dividends have been
provided for in accordance with the Portfolio's understanding of the applicable
country's tax rules and rates.
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 and distribute dividends monthly. The Large-Cap
Value Equity, The Labor Select International Equity and The International Fixed
Income Portfolios expect to declare and distribute dividends quarterly. The
Equity Income, The Core Equity, The Select Equity, The All-Cap Growth Equity,
The Mid-Cap Growth Equity, The Small-Cap Value Equity, The Small-Cap Growth
Equity, The Real Estate Investment Trust II, The Aggregate Fixed Income, The
Diversified Core Fixed Income, The Balanced, The International Large-Cap Equity,
The Global Equity, The International Equity, The International Small-Cap and The
Emerging Markets Portfolios expect to declare and distribute dividends, if any,
annually. Net capital gains for all Portfolios, if any, will be distributed
annually.
Certain expenses of the Portfolios are paid through commission arrangements with
brokers. These transactions are done subject to best execution. In addition,
each Portfolio may receive earnings credits from its custodian when positive
cash balances are maintained, which are used to offset custody fees. The
expenses paid under the above arrangements are included in their respective
expense captions on the Statements of Operations with the corresponding offset
shown as "expenses paid indirectly". The amount of these expenses and credits
for the periods ended October 31, 2000 were as follows:
Commission Earnings
Reimbursements Credits
--------------------------------------------------------------------------------
The Large-Cap Value Equity Portfolio $2,413 $771
The Equity Income Portfolio 2,583 308
The Core Equity Portfolio 50 110
The Select Equity Portfolio 58 --
The All-Cap Growth Equity Portfolio 130 600
The Mid-Cap Growth Equity Portfolio 170 189
The Small-Cap Value Equity Portfolio 48 15
The Small-Cap Growth Equity Portfolio 477 283
The Real Estate Investment Trust Portfolio II 62 47
The Intermediate Fixed Income Portfolio 310 --
The Aggregate Fixed Income Portfolio 166 292
The High-Yield Bond Portfolio 138 563
The Diversified Core Fixed Income Portfolio 108 484
The Balanced Portfolio 3,873 9,278
The International Large-Cap Equity Portfolio 60 --
The Global Equity Portfolio 77 96
The International Equity Portfolio 19,017 6
The Labor Select International Equity Portfolio 2,548 713
The International Small-Cap Portfolio 68 93
The Emerging Markets Portfolio 2,650 3,730
The Global Fixed Income Portfolio 12,870 2,338
The International Fixed Income Portfolio 1,777 --
================================================================================
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 Equity Income Portfolio, The Core Equity Portfolio, The Select
Equity Portfolio, The All-Cap Growth Equity Portfolio, The Mid-Cap Growth Equity
Portfolio, The Small-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 and The Balanced
Portfolio and Delaware International Advisers Ltd. (DIAL), the investment
manager of The International Large-Cap Equity Portfolio, The Global Equity
Portfolio, The International Equity Portfolio, The Labor Select International
Equity Portfolio, The International Small-Cap Portfolio, The Emerging Markets
Portfolio, The Global Fixed Income Portfolio and The International Fixed Income
Portfolio, will receive an annual fee which is calculated on the net assets of
each Portfolio.
2000 Annual Report o Delaware Pooled Trust 139
<PAGE>
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. DIAL furnishes sub-advisory services to The
Diversified Core Fixed Income Portfolio related to the foreign securities
portion of the portfolio. DMC furnishes sub-advisory services to The Global
Equity Portfolio related to the U.S. securities portion of the portfolio.
DMC and DIAL have elected to waive their fees and reimburse each Portfolio to
the extent necessary to ensure that annual operating expenses exclusive of
taxes, interest, brokerage commissions and extraordinary expenses do not exceed
a specified percentage of net assets through April 30, 2001.
The management fee rates and the operating expense limitation rates in effect
for the periods ended October 31, 2000 are as follows:
<TABLE>
<CAPTION>
Operating Expense
Management Limitation as
fee as a percentage a percentage
of average daily of average daily
net assets (per annum) net assets (per annum)
----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
The Large-Cap Value Equity Portfolio 0.55% 0.68%
The Equity Income Portfolio 0.55% 0.68%
The Core Equity Portfolio 0.55% 0.68%
The Select Equity Portfolio 1.00% 1.20%
The All-Cap Growth Equity Portfolio 0.75% 0.89%
The Mid-Cap Growth Equity Portfolio 0.75% 0.93%
The Small-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 Balanced Portfolio 0.55% 0.68%
The International Large-Cap Equity Portfolio 0.75% 0.96%
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 International Small-Cap Portfolio 1.00% 1.20%
The Emerging Markets Portfolio 1.00% 1.55%
The Global Fixed Income Portfolio 0.50% 0.60%
The International Fixed Income Portfolio 0.50% 0.60%
================================================================================================================
</TABLE>
140 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
The Trust has engaged Delaware Service Company, Inc. (DSC), an affiliate of DMC,
to provide dividend disbursing, transfer agent, accounting and administrative
services. Each Portfolio pays DSC a monthly fee based on average net assets,
subject to certain minimums.
On October 31, 2000, the Trust had liabilities payable to affiliates as follows:
<TABLE>
<CAPTION>
Dividend
disbursing,
transfer
agent fees,
accounting
Investment Management fees and Other expenses
fee payable to other expenses payable to DMC
DMC or DIAL payable to DSC and affiliates
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
The Large-Cap Value Equity Portfolio $24,561 $3,367 $24,603
The Equity Income Portfolio 47,203 4,548 11,530
The Core Equity Portfolio 831 172 536
The Select Equity Portfolio 1,289 93 530
The All-Cap Growth Equity Portfolio 30,144 2,871 2,847
The Mid-Cap Growth Equity Portfolio 3,431 543 2,655
The Small-Cap Value Equity Portfolio 1,317 142 616
The Small-Cap Growth Equity Portfolio 19,536 1,657 5,366
The Real Estate Investment Trust Portfolio II 1,369 179 1,405
The Intermediate Fixed Income Portfolio 3,467 590 3,922
The Aggregate Fixed Income Portfolio -- 408 1,244
The High-Yield Bond Portfolio -- 219 1,417
The Diversified Core Fixed Income Portfolio 2,810 419 1,211
The Balanced Portfolio -- 6,727 16,620
The International Large-Cap Equity Portfolio 8,531 211 1,565
The Global Equity Portfolio -- 275 1,203
The International Equity Portfolio 7,870 21,269 78,920
The Labor Select International Equity Portfolio 53,006 4,087 12,912
The International Small-Cap Portfolio 849 138 633
The Emerging Markets Portfolio 98,683 5,368 12,989
The Global Fixed Income Portfolio 45,532 22,632 57,477
The International Fixed Income Portfolio 7,993 2,470 6,578
===============================================================================================================
</TABLE>
Certain officers of DMC, DSC and DIAL are officers, trustees and/or employees of
the Trust. These officers, trustees and employees are paid no compensation by
the Trust.
2000 Annual Report o Delaware Pooled Trust 141
<PAGE>
3. Investments
During the periods ended October 31, 2000, each Portfolio made purchases and
sales of investment securities other than U.S. government securities and
short-term investments as follows:
<TABLE>
<CAPTION>
Purchases Sales
-------------------------------------------------------------------------------------
<S> <C> <C>
The Large-Cap Value Equity Portfolio $57,591,669 $113,547,007
The Equity Income Portfolio 86,257,907 124,998,249
The Core Equity Portfolio 3,051,191 3,447,046
The Select Equity Portfolio 8,154,514 10,827,194
The All-Cap Growth Equity Portfolio 19,920,529 7,756,975
The Mid-Cap Growth Equity Portfolio 9,630,732 13,264,703
The Small-Cap Value Equity Portfolio 1,796,218 1,773,427
The Small-Cap Growth Equity Portfolio 41,406,950 13,336,541
The Real Estate Investment Trust Portfolio II 883,249 3,390,850
The Intermediate Fixed Income Portfolio 9,726,490 17,926,127
The Aggregate Fixed Income Portfolio 7,557,594 6,434,246
The High-Yield Bond Portfolio 7,615,576 15,348,256
The Diversified Core Fixed Income Portfolio 6,630,978 2,726,418
The Balanced Portfolio 196,483,922 245,535,861
The International Large-Cap Equity Portfolio 3,112,327 141,386
The Global Equity Portfolio 1,157,852 1,097,165
The International Equity Portfolio 152,272,919 416,532,631
The Labor Select International Equity Portfolio 21,403,215 42,924,086
The International Small-Cap Portfolio 728,943 646,187
The Emerging Markets Portfolio 109,156,800 20,838,633
The Global Fixed Income Portfolio 257,435,367 359,567,076
The International Fixed Income Portfolio 55,028,135 70,207,758
=====================================================================================
</TABLE>
At October 31, 2000, the cost of investments 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 $77,153,835 $12,276,556 $(5,420,071) $6,856,485
The Equity Income Portfolio 103,293,329 13,345,033 (5,203,064) 8,141,969
The Core Equity Portfolio 2,018,857 190,512 (125,164) 65,348
The Select Equity Portfolio 2,029,739 167,697 (128,651) 39,046
The All-Cap Growth Equity Portfolio 12,194,111 1,768,889 (507,174) 1,261,715
The Mid-Cap Growth Equity Portfolio 4,586,075 2,406,537 (295,610) 2,110,927
The Small-Cap Value Equity Portfolio 2,056,536 305,825 (100,505) 205,320
The Small-Cap Growth Equity Portfolio 32,745,053 7,363,301 (2,469,809) 4,893,492
The Real Estate Investment Trust Portfolio II 1,990,338 232,300 (50,818) 181,482
The Intermediate Fixed Income Portfolio 8,466,886 57,589 (119,914) (62,325)
The Aggregate Fixed Income Portfolio 7,374,411 87,282 (33,089) 54,193
The High-Yield Bond Portfolio 1,832,649 7,188 (142,895) (135,707)
The Diversified Core Fixed Income Portfolio 7,578,031 86,801 (167,349) (80,548)
The Balanced Portfolio 150,064,096 9,485,323 (5,645,486) 3,839,837
The International Large-Cap Equity Portfolio 3,054,270 151,249 (313,389) (162,140)
The Global Equity Portfolio 3,347,041 373,041 (432,605) (59,564)
The International Equity Portfolio 534,685,821 75,343,191 (63,464,319) 11,878,872
The Labor Select International Equity Portfolio 87,796,892 14,545,343 (12,874,239) 1,671,104
The International Small-Cap Portfolio 3,291,016 262,278 (635,546) (373,268)
The Emerging Markets Portfolio 144,466,512 2,519,639 (33,440,880) (30,921,241)
The Global Fixed Income Portfolio 448,870,290 537,089 (66,009,285) (65,472,196)
The International Fixed Income Portfolio 59,381,664 46,569 (9,995,534) (9,948,965)
==============================================================================================================================
</TABLE>
142 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
For federal income tax purposes, each Portfolio listed below had accumulated
capital losses at October 31, 2000, which may be carried forward and applied
against future capital gains, as follows:
<TABLE>
<CAPTION>
Year of Year of Year of
Expiration Expiration Expiration
2006 2007 2008 Total
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
The Large-Cap Value Equity Portfolio $ -- $ -- $ 7,849,975 $ 7,849,975
The Equity Income Portfolio -- 843,355 18,339,442 19,182,797
The Core Equity Portfolio 5,571 20,363 94,969 120,903
The All-Cap Growth Equity Portfolio -- -- 839,442 839,442
The Small-Cap Value Equity Portfolio -- -- 43,340 43,340
The Small-Cap Growth Equity Portfolio -- -- 851,478 851,478
The Real Estate Investment Trust Portfolio II 197,435 440,827 459,684 1,097,946
The Intermediate Fixed Income Portfolio -- 88,867 482,193 571,060
The Aggregate Fixed Income Portfolio -- 172,214 358,838 531,052
The High Yield Bond Portfolio -- 2,067,829 1,887,452 3,955,281
The Balanced Portfolio -- 11,463,551 18,142,143 29,605,694
The Emerging Markets Portfolio -- 682,893 -- 682,893
The Global Fixed Income Portfolio -- 4,384,786 13,425,336 17,810,122
The International Fixed Income Portfolio -- 836,557 2,024,707 2,861,264
=========================================================================================================================
</TABLE>
4. Capital Shares
Transactions in capital shares were as follows:
<TABLE>
<CAPTION>
Shares issued Net
Shares upon reinvestment Shares increase
Periods ended October 31, 2000*: sold of distributions repurchased (decrease)
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
The Large-Cap Value Equity Portfolio 815,080 879,685 (4,999,920) (3,305,155)
The Equity Income Portfolio 1,884,349 263,830 (7,435,099) (5,286,920)
The Core Equity Portfolio -- 2,367 (50,253) (47,886)
The Select Equity Portfolio -- -- (312,854) (312,854)
The All-Cap Growth Equity Portfolio 1,498,152 -- -- 1,498,152
The Mid-Cap Growth Equity Portfolio 48,319 63,391 (381,292) (269,582)
The Small-Cap Value Equity Portfolio -- 8,860 -- 8,860
The Small-Cap Growth Equity Portfolio 1,539,817 45,744 (34,849) 1,550,712
The Real Estate Investment Trust Portfolio II -- 19,604 (219,306) (199,702)
The Intermediate Fixed Income Portfolio 43,164 55,117 (1,061,561) (963,280)
The Aggregate Fixed Income Portfolio 25,443 44,991 (97,420) (26,986)
The High-Yield Bond Portfolio -- 92,100 (960,193) (868,093)
The Diversified Core Fixed Income Portfolio 478,469 27,492 (2,917) 503,044
The Balanced Portfolio 1,650,425 352,081 (9,275,322) (7,272,816)
The International Large-Cap Equity Portfolio 352,943 396 -- 353,339
The Global Equity Portfolio -- 17,012 -- 17,012
The International Equity Portfolio 7,661,597 925,270 (24,809,029) (16,222,162)
The Labor Select International Equity Portfolio 1,206,165 491,153 (3,149,617) (1,452,299)
The International Small-Cap Portfolio -- 5,276 -- 5,276
The Emerging Markets Portfolio 11,808,000 144,001 (1,436,571) 10,515,430
The Global Fixed Income Portfolio 3,437,292 1,797,912 (22,145,312) (16,910,108)
The International Fixed Income Portfolio 2,185,875 439,239 (5,426,479) (2,801,365)
=========================================================================================================================
</TABLE>
2000 Annual Report o Delaware Pooled Trust 143
<PAGE>
<TABLE>
<CAPTION>
Shares issued Net
Shares upon reinvestment Shares increase
Periods ended October 31, 1999**: sold of distributions repurchased (decrease)
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
The Large-Cap Value Equity Portfolio 2,060,910 998,390 (988,742) 2,070,558
The Equity Income Portfolio 19,392,311 -- (1,145,488) 18,246,823
The Core Equity Portfolio 49,966 615 (125) 50,456
The Select Equity Portfolio 548,149 -- -- 548,149
The Mid-Cap Growth Equity Portfolio 73,038 188,392 (121,166) 140,264
The Small-Cap Value Equity Portfolio 235,295 -- -- 235,295
The Small-Cap Growth Equity Portfolio 81,809 834 -- 82,643
The Real Estate Investment Trust Portfolio II -- 22,823 (90,192) (67,369)
The Intermediate Fixed Income Portfolio 41,444 138,576 (1,348,122) (1,168,102)
The Aggregate Fixed Income Portfolio 616,362 17,921 (22,632) 611,651
The High-Yield Bond Portfolio 261,289 247,603 (1,463,703) (954,811)
The Diversified Core Fixed Income Portfolio -- 41,846 -- 41,846
The Balanced Portfolio 29,390,669 -- (2,590,454) 26,800,215
The Global Equity Portfolio -- 12,189 -- 12,189
The International Equity Portfolio 12,404,247 865,759 (4,960,935) 8,309,071
The Labor Select International Equity Portfolio 820,282 192,603 (864,637) 148,248
The International Small-Cap Portfolio 352,942 -- -- 352,942
The Emerging Markets Portfolio -- 136,784 (82,742) 54,042
The Global Fixed Income Portfolio 4,473,109 2,709,548 (6,523,752) 658,905
The International Fixed Income Portfolio 1,397,912 433,707 (1,004,754) 826,865
=======================================================================================================================
</TABLE>
*The All-Cap Growth Equity Portfolio commenced operations on 3/31/00 and The
International Large-Cap Equity Portfolio commenced operations on 12/14/99.
**The Small-Cap Value Equity Portfolio commenced operations on 3/29/99, The
Select Equity Portfolio commenced operations on 6/29/99, The Equity Income
Portfolio and The Balanced Portfolio commenced operations on 6/30/99 and The
International Small-Cap Portfolio commenced operations on 7/20/99.
5. Lines of Credit
The Portfolios, along with certain other funds in the Delaware Investments
Family of Funds (the "Participants"), participate in a $375,400,000 revolving
line of credit facility to be used for temporary or emergency purposes as an
additional source of liquidity to fund redemptions of investor shares. The
Participants are charged an annual commitment fee, which is allocated across the
Participants on the basis of each fund's allocation of the entire facility. The
Participants may borrow up to one third of their net assets under the agreement.
The Portfolios had no amounts outstanding at October 31, 2000, or at any time
during the period.
6. Foreign Exchange Contracts
The International Large-Cap Equity, The Global Equity, The International Equity,
The Labor Select International Equity, The International Small-Cap, 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 exchange 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. They may also be used to hedge the U.S. dollar value of securities they
already own denominated in foreign currencies.
Forward foreign currency exchange 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 as an unrealized gain or loss. When the contract is closed, a
realized gain or loss is recorded 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.
144 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
The use of forward foreign currency exchange contracts and forward foreign cross
currency exchange contracts do not eliminate fluctuations in the underlying
prices of the securities, but do 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.
There were no forward foreign currency exchange contracts outstanding at October
31, 2000.
7. Futures Contracts
Certain Portfolios may invest in financial futures contracts for the primary
purpose of hedging their existing portfolio securities against fluctuations in
fair value caused by changes in prevailing market rates. Upon entering into a
futures contract, the Portfolio deposits cash or pledges U.S. government
securities to a broker, equal to the minimum "initial margin" requirements of
the exchange on which the contract is traded. (In some cases, due to the form of
the futures agreement, initial margin is held in a segregated account with the
Portfolio's custodian, rather than directly with the broker.) Subsequent
payments are received from the broker or paid to the broker (or added to the
segregated account) each day, based on the daily fluctuation in the market value
of the contract. These receipts or payments are known as "variation margin" and
are recorded daily by the Portfolio as unrealized gains or losses until the
contracts are closed. When the contracts are closed, the Portfolio records a
realized gain or loss equal to the difference between the value of the contract
at the time it was opened and the value at the time it was closed. Risk may
arise upon entering into futures contracts from potential imperfect correlation
between the futures contracts and the underlying securities and from the
possibility of an illiquid secondary market for these instruments.
Financial futures contracts open at October 31, 2000 were as follows:
The Balanced Portfolio
<TABLE>
<CAPTION>
Contracts to buy (sell) Notional cost amount Expiration date Unrealized loss
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
(5) U.S. Treasury 10 year notes $ (500,746) 12/00 ($2,773)
10 U.S. Treasury 10 year notes 1,012,883 12/00 (5,852)
20 U.S. Treasury 5 year notes 2,013,890 12/00 (140)
=============================================================================================================
</TABLE>
The use of futures contracts involves elements of market risk and risks in
excess of the amount recognized in the financial statements. The "Notional cost
amount" presented above represents the Portfolio's total exposure in such
contracts, whereas only the net unrealized gain (loss) is reflected in the
Portfolio's net assets.
8. Options Written
During the year ended October 31, 2000, The Diversified Core Fixed Income
Portfolio entered into options contracts in accordance with its investment
objectives. When the Portfolio writes an option, a premium is received and a
liability is recorded and adjusted on a daily basis to reflect the current
market value of the options written. Premiums received from writing options that
expire unexercised are treated by the Portfolio on the expiration date as
realized gains. The difference between the premium received and the amount paid
on effecting a closing purchase transaction, including brokerage commissions, is
treated as a realized gain or loss. If a call option is exercised, the premium
is added to the proceeds from the sale of the underlying security in determining
whether the Portfolio has a realized gain or loss. If a put option is exercised,
the premium reduces the cost basis of the securities purchased by the Portfolio.
The Portfolio, as writer of an option, bears the market risk of an unfavorable
change in the price of the security underlying the written option.
2000 Annual Report o Delaware Pooled Trust 145
<PAGE>
Transactions in options written during the year ended October 31, 2000 for The
Diversified Core Fixed Income Portfolio, were as follows:
Number Premiums
of Contracts Received
--------------------------------------------------------------------------------
Options outstanding at October 31, 1999 25 $ 39,968
Options written 475 336,791
Options terminated in closing purchase transaction (500) (376,759)
----- ---------
Options outstanding at October 31, 2000 -- --
================================================================================
9. Credit and Market Risk
Some countries in which The International Large-Cap Equity, The Global Equity,
The International Equity, The Labor Select International Equity, The
International Small-Cap, 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 by 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
are generally accompanied by a greater degree of credit risk than higher rated
securities. Additionally, lower rated securities are generally more susceptible
to adverse economic and competitive industry conditions than investment grade
securities.
The Intermediate Fixed Income, The Aggregate Fixed Income, The Diversified Core
Fixed Income and The Balanced Portfolios may invest in securities whose value is
derived from an underlying pool of mortgages or consumer loans. Investors
receive principal and interest payments as the underlying mortgages and consumer
loans are paid back. Prepayment of mortgages may shorten the stated maturity of
the obligations and may result in a loss of premium, if any has been paid.
The Large-Cap Value Equity, The Mid-Cap Growth Equity, The International Equity,
The Intermediate Fixed Income and The Global Fixed Income Portfolios may invest
no more than 10% of their 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 Equity Income, The
Core Equity, The Select Equity, The All-Cap Growth Equity, The Small-Cap Value
Equity, The Small-Cap Growth Equity, The Real Estate Investment Trust II, The
Aggregate Fixed Income, The High-Yield Bond, The Diversified Core Fixed Income,
The International Large-Cap Equity, The Global Equity, The Labor Select
International Equity, The International Small-Cap, The Emerging Markets, and The
International Fixed Income Portfolios may each invest no more than 15% of total
assets in illiquid securities. 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.
The All-Cap Growth Equity, The Mid-Cap Growth Equity, The Small-Cap Value
Equity, The Small-Cap Growth Equity and The International Small-Cap Portfolios
invest a significant portion of their assets in small or medium-sized companies
and may be subject to certain risks associated with ownership of securities of
small and medium-sized companies. Investments in smaller companies may be more
volatile than investments in larger companies because of the limited financial
resources of small and medium-sized companies or their dependence on narrow
products lines.
146 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
The Real Estate Investment Portfolio II concentrates its investments in the real
estate industry and may be subject to certain risks associated with that
industry. If the Portfolio holds real estate directly as a result of defaults or
receives rental income directly from real estate holdings, its tax status as a
regulated investment company may be jeopardized. The Portfolio is also affected
by interest rate changes, particularly if the real estate investment trusts it
holds use floating rate debt to finance their ongoing operations. Its
investments may also tend to fluctuate more in value than a portfolio that
invests in a broader range of industries.
10. Securities Lending
The Portfolios may participate, along with other funds in the Delaware
Investments Family of Funds, in a Securities Lending Agreement ("Lending
Agreement"). Security loans made pursuant to the Lending Agreement are required
at all times to be secured by U.S. Treasury obligations and/or cash collateral
at least equal to 100% of the market value of securities issued in the U.S. and
105% of the market value of securities issued outside of the U.S. Cash
collateral received is invested in fixed income securities, with a weighted
average maturity not to exceed 90 days, rated in one of the top two tiers by
Standard & Poor's Ratings Group or Moody's Investors Service, Inc. or repurchase
agreements collateralized by such securities. However, in the event of default
or bankruptcy by the lending agent, 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 the collateral received is insufficient to
cover the value of the loaned securities and provided such collateral 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 discretion of the lending agent,
replace the loaned securities. The market value of the securities on loan and
the related collateral received at October 31, 2000 were as follows:
<TABLE>
<CAPTION>
Market value Income earned
of securites Market value for the year
on loan of collateral ended 10/31/00*
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
The International Equity Portfolio $33,865,218 $35,713,779 $289,373
The Labor Select International Equity Portfolio 6,604,301 6,976,257 30,945
The Global Fixed Income Portfolio 77,056,928 80,909,775 134,181
========================================================================================================
</TABLE>
*Included in interest income on the Statements of Operations.
2000 Annual Report o Delaware Pooled Trust 147
<PAGE>
11. Tax Information (Unaudited)
The information set forth below is for each Portfolio's fiscal year as required
by federal laws. Shareholders, however, must report distributions on a calendar
basis for income tax purposes, which may include distributions for portions of
two fiscal years of a fund. Accordingly, the information needed by shareholders
for income tax purposes will be sent to them in early 2001. Please consult your
tax advisor for proper treatment of this information.
For the fiscal year ended October 31, 2000, each Portfolio designates
distributions paid during the year as follows:
<TABLE>
<CAPTION>
(A) (B)
Long-Term Ordinary (C) (D)
Capital Gains Income Return Total (E)
Distributions Distributions of Capital Distribution Qualifying
(Tax Basis) (Tax Basis) (Tax Basis) (Tax Basis) Dividends(1)
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
The Large-Cap Value Equity Portfolio 74% 26% -- 100% 100%
The Equity Income Portfolio -- 100% -- 100% 75%
The Core Equity Portfolio -- 100% -- 100% 100%
The Select Equity Portfolio -- -- -- -- --
The All-Cap Growth Equity Portfolio -- -- -- -- --
The Mid-Cap Growth Equity Portfolio 95% 5% -- 100% 1%
The Small-Cap Value Equity Portfolio -- 100% -- 100% 100%
The Small-Cap Growth Equity Portfolio 5% 95% -- 100% --
The Real Estate Investment Trust Portfolio II -- 100% -- 100% --
The Intermediate Fixed Income Portfolio -- 100% -- 100% --
The Aggregate Fixed Income Portfolio -- 100% -- 100% --
The High-Yield Bond Portfolio -- 100% -- 100% 4%
The Diversified Core Fixed Income Portfolio -- 100% -- 100% --
The Balanced Portfolio -- 100% -- 100% 26%
The International Large-Cap Equity Portfolio -- 100% -- 100% --
The Global Equity Portfolio 52% 48% -- 100% 45%
The International Equity Portfolio 36% 64% -- 100% --
The Labor Select International Equity Portfolio 55% 45% -- 100% --
The International Small-Cap Portfolio -- 100% -- 100% --
The Emerging Markets Portfolio -- 100% -- 100% --
The Global Fixed Income Portfolio -- 58% 42% 100% --
The International Fixed Income Portfolio -- 88% 12% 100% --
==============================================================================================================================
</TABLE>
(A) (B) and (C) are based on a percentage of the portfolio's total
distributions. Item (E) is based on a percentage of ordinary income of the
portfolio. (1)Qualifying dividends represent dividends which qualify for the
corporate dividends received deduction.
148 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
The amount per share of income from the foreign taxes paid to each country is
listed in the following schedule:
<TABLE>
<CAPTION>
The Labor Select
The International Equity Portfolio International Equity Portfolio
---------------------------------- -------------------------------
Gross Foreign Gross Foreign
Dividend Taxes Paid Dividend Taxes Paid
Country Per Share Per Share Per Share Per Share
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Australia $0.1380 $0.0071 $0.0952 $0.0042
Belgium 0.0138 0.0021 0.0112 0.0017
Germany 0.0463 0.0046 0.0363 0.0036
France 0.0706 0.0108 0.0477 0.0074
Hong Kong 0.0470 -- -- --
Japan 0.0247 0.0037 0.0198 0.0030
Malaysia 0.0058 -- -- --
Netherlands 0.0548 0.0082 0.0319 0.0048
New Zealand 0.0414 0.0062 0.0321 0.0048
Singapore 0.0031 -- -- --
Spain 0.0320 0.0048 0.0358 0.0054
South Africa 0.0152 -- -- --
United Kingdom 0.3902 0.0312 0.2655 0.0209
United States 0.0182 -- -- --
========================================================================================================
</TABLE>
2000 Annual Report o Delaware Pooled Trust 149
<PAGE>
Report of Independent Auditors
To the Shareholders and Board of Trustees
Delaware Pooled Trust
We have audited the accompanying statements of net assets of The Large-Cap Value
Equity Portfolio, The Equity Income Portfolio, The Core Equity Portfolio, The
Select Equity Portfolio, The All-Cap Growth Equity Portfolio, The Mid-Cap Growth
Equity Portfolio, The Small-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
Balanced Portfolio, The International Large-Cap Equity Portfolio, The Global
Equity Portfolio, The International Equity Portfolio, The Labor Select
International Equity Portfolio, The International Small-Cap Portfolio, The
Emerging Markets Portfolio, The Global Fixed Income Portfolio, and The
International Fixed Income Portfolio (the "Portfolios") (each a series of
Delaware Pooled Trust) as of October 31, 2000, and the statements of assets and
liabilities of The Select Equity Portfolio, The Mid-Cap Growth Equity Portfolio,
The Intermediate Fixed Income Portfolio, and The High Yield Bond Portfolio as of
October 31, 2000, 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 Portfolios' 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 auditing standards generally accepted
in the United States. 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, 2000, by correspondence with
the custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
above listed Portfolios at October 31, 2000, 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 accounting principles
generally accepted in the United States.
/s/ Ernst & Young LLP
----------------------------------
Philadelphia, Pennsylvania
December 8, 2000
150 Delaware Pooled Trust o 2000 Annual Report
<PAGE>
Fund Officers and Portfolio Managers
<TABLE>
<CAPTION>
<S> <C>
Charles E. Haldeman, Jr. Roger A. Early
President and Chief Executive Officer Senior Vice President and Senior Portfolio Manager
Delaware Management Holdings, Inc.
John B. Fields
Wayne A. Stork Senior Vice President and Senior Portfolio Manager
Chairman
Delaware Investments Family of Funds Gerald S. Frey
Senior Vice President and Senior Portfolio Manager
David K. Downes
President and Chief Executive Officer Clive A. Gillmore
Delaware Investments Family of Funds Director and Senior Portfolio Manager
Delaware International Advisers Ltd.
David A. Tilles
Managing Director and Chief Investment Officer Paul C. Grillo, Jr.
Delaware International Advisers Ltd. Vice President and Portfolio Manager
Robert Akester Gavin A. Hall
Senior Portfolio Manager Senior Portfolio Manager
Delaware International Advisers Ltd. Delaware International Advisers Ltd.
Peter C. Andersen John A. Heffern
Senior Vice President and Senior Portfolio Manager Vice President and Portfolio Manager
Damon J. Andres John Kirk
Vice President and Portfolio Manager Director and Senior Portfolio Manager
Delaware International Advisers Ltd.
Robert L. Arnold
Vice President and Senior Portfolio Manager Nigel G. May
Director and Senior Portfolio Manager
Fiona Barwick Delaware International Advisers Ltd.
Senior Portfolio Manager
Delaware International Advisers Ltd. Francis X. Morris
Vice President and Senior Portfolio Manager
Marshall T. Bassett
Vice President and Portfolio Manager Christopher A. Moth
Director and Senior Portfolio Manager
Joanna Bates Delaware International Advisers Ltd.
Senior Portfolio Manager
Delaware International Advisers Ltd. Thomas J. Trotman
Vice President and Portfolio Manager
Christopher S. Beck
Vice President and Senior Portfolio Manager Custodian
The Chase Manhattan Bank
Stephen R. Cianci 4 Metrotech Center
Vice President and Portfolio Manager Brooklyn, NY 11245
Timothy G. Connors Independent Auditors
Vice President and Senior Portfolio Manager Ernst & Young LLP
Two Commerce Square
George E. Deming Philadelphia, PA 19103
Vice President and Senior Portfolio Manager
Investment Advisers
Elizabeth A. Desmond Delaware Management Company
Director and Senior Portfolio Manager One Commerce Square
Delaware International Advisers Ltd. Philadelphia, PA 19103
J. Paul Dokas Delaware International Advisers Ltd.
Vice President and Senior Portfolio Manager Third Floor
80 Cheapside
Jude T. Driscoll London, England EC2V 6EE
Executive Vice President and Senior Portfolio Manager
</TABLE>
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 prospectus, which contains detailed information. All
Delaware Pooled Trust Portfolios are offered by prospectus only.
<PAGE>
One Commerce Square
Philadelphia, Pennsylvania 19103
Telephone 1-800-231-8002
Fax 215-255-1162
AR-DPT [10/00] KWD 12/00
(4085) (J6508)
