<PAGE>
June 30, 1995
DELAWARE GROUP GLOBAL & INTERNATIONAL FUNDS, INC.
INTERNATIONAL EQUITY FUND
GLOBAL BOND FUND
GLOBAL ASSETS FUND
A CLASS/B CLASS
Supplement to Prospectus dated March 10, 1995
The following supplements the information which appears on page 1:
Unaudited financial statements for the International Equity Series for
the six months ended May 31, 1995, and the Global Bond Series and the Global
Assets Series for the five months ended May 31, 1995, (individually and
collectively the "Series") are included in Delaware Group Global & International
Funds, Inc.'s (the "Fund") Statement of Additional Information ("Part B").
The following revises the information under Summary of Expenses and
Management of the Fund relating to the Global Bond Fund A Class, the Global Bond
Fund B Class, the Global Assets Fund A Class and the Global Assets Fund B Class
which appears on pages 5 and 32, respectively:
Delaware International Advisers Ltd. ("Delaware International") has
elected voluntarily to waive that portion, if any, of the annual management fees
payable by, respectively, the Global Bond Series and the Global Assets Series to
the extent necessary to ensure that the Total Operating Expenses of Class A
Shares of each of those Series do not exceed 1.25% and of Class B Shares of each
of those Series do not exceed 1.95% (in both cases, exclusive of taxes,
interest, brokerage commissions and extraordinary expenses, but inclusive of
12b-1 fees) through November 30, 1995.
The following supplements the Financial Highlights information which
appears on page 7:
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
The following unaudited financial highlights for the International Equity Fund A
Class, the International Equity Fund B Class, the Global Bond Fund A Class, the
Global Bond Fund B Class, the Global Assets Fund A Class and the Global Assets
Fund B Class are derived from the unaudited financial statements of Delaware
Group Global & International Funds, Inc. - International Equity Series for the
six-month period ended May 31, 1995, and Global Bond Series and Global Assets
Series for the five-month period ended May 31, 1995. The data should be read in
conjunction with the financial statements and related notes which are included
in Part B.
- -------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
International International Global Bond Global Bond Global Assets Global Assets
Equity Fund Equity Fund Fund Fund Fund Fund
A Class B Class A Class B Class A Class B Class
------------- ------------ ------------ ----------- ----------- ------------
Period Period Period Period Period Period
12/1/94 12/1/94 12/27/94(2) 12/27/94(2) 12/27/94(2) 12/27/94(2)
through through through through through through
5/31/95(1) 5/31/95(1) 5/31/95 5/31/95 5/31/95 5/31/95
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period..... $11.920 $11.900 $10.000 $10.000 $10.000 $10.000
Income From Investment Operations
- ---------------------------------
Net Investment Income (Loss) ............ (0.149) (0.156) 0.255 0.250 0.170 0.170
Net Gains (Losses) on Securities
(both realized and unrealized).. 0.694 0.661 0.585 0.566 1.010 0.980
------- ------- ------- ------- ------- -------
Total From Investment Operations..... 0.545 0.505 0.840 0.816 1.180 1.150
------- ------- ------- ------- ------- -------
Less Distributions
- ------------------
Dividends From Net Investment Income..... (0.125) (0.105) (0.240) (0.216) (0.080) (0.060)
Distributions From Capital Gains......... (0.470) (0.470) none none none none
Returns of Capital....................... none none none none none none
------- ------- ------- ------- ------- -------
Total Distributions.................. (0.595) (0.575) (0.240) (0.216) (0.080) (0.060)
------- ------- ------- ------- ------- -------
Net Asset Value, End of Period........... $11.870 $11.830 $10.600 $10.600 $11.100 $11.090
======= ======= ======= ======= ======= =======
- ----------------------------------------
Total Return............................ 4.80%(1)(3) 4.45%(1)(4) 8.49%(2)(3)(5) 8.24%(2)(4)(5) 11.84%(2)(3)(5) 11.53%(2)(4)(5)
- ------------
- ----------------------------------------
Ratios/Supplemental Data
- ------------------------
Net Assets, End of Period (000's
omitted)............................... $58,553 $1,565 $348 $0(6) $354 $0 (6)
Ratio of Expenses to Average Daily Net
Assets................................. 2.08%(1) 2.78%(1) 1.25%(2) 1.95%(2) 1.25%(2) 1.95%(2)
Ratio of Expenses to Average Daily Net
Assets Prior to Expense Limitation..... -- -- 16.55% 17.25% 11.15% 11.85%
Ratio of Net Investment Income to
Average Daily Net Assets............... (2.94%)(1) (3.64%)(1) 7.07%(2) 6.37%(2) 4.75%(2) 4.05%(2)
Ratio of Net Investment Income to
Average Daily Net Assets Prior to
Expense Limitation..................... -- -- (8.23%) (8.93%) (5.15%) (5.85%)
Portfolio Turnover Rate................. 25%(1) 25%(1) 70%(2) 70%(2) 85%(2) 85%(2)
</TABLE>
- ------------
1 Ratios have been annualized but total return has not been annualized.
2 Date of initial public offering; ratios have been annualized but total return
has not been annualized.
3 Does not reflect maximum sales charge of, in the case of International Equity
Fund A Class and Global Assets Fund A Class, 5.75% and, in the case of Global
Bond Fund A Class, 4.75% nor the 1% Limited CDSC that would apply in the
event of certain redemptions within 12 months of purchase. See Contingent
Deferred Sales Charge for Certain Purchases of Class A Shares Made at Net
Asset Value under Redemption and Exchange in the Prospectus.
4 Does not reflect contingent deferred sales charge which varies from 1%-4%
depending on the holding period.
5 Total return reflects the expense limitations referenced above.
6 Only one share of the Global Bond Fund B Class and the Global Assets Fund B
Class is outstanding, the net asset value of which is, respectively, $10.60
and $11.09.
<PAGE>
The following revises information in Buying At Net Asset Value under
Buying Shares on page 21:
Purchases of Class A Shares of the above referenced Series may be made at
net asset value by current and former officers, directors and employees and
members of their immediate families of Delaware International, any affiliate,
any of the funds in the Delaware Group, certain of their agents and registered
representatives and employees of authorized investment dealers and by employee
benefit plans for such entities.
The following supplements Buying At Net Asset Value under Buying Shares
on page 21:
Beginning May 25, 1995, Class A Shares of the above referenced Series may
be purchased at net asset value by any investor within 90 days after a
redemption of shares from a fund outside the Delaware Group of funds provided
that: 1) the redeemed shares were purchased no more than five years before the
proposed purchase of the Class A Shares; and 2) a front-end sales charge was
paid in connection with the purchase of the redeemed shares or a contingent
deferred sales charge was paid upon their redemption.
The following supplements International Equity Fund Institutional Class,
Global Bond Fund Institutional Class and Global Assets Fund Institutional Class
under Buying Shares on page 23:
The 12b-1 Plan distribution expenses with respect to the Class A Shares
and the Class B Shares, the front-end sales charge and the limited contingent
deferred sales charge, if applicable, with respect to the Class A Shares and the
contingent deferred sales charge with respect to the Class B Shares may affect
the performance of those classes.
The following supplements The Conditions of Your Purchase under Buying
Shares on page 25:
The Fund reserves the right to reject purchases by check that are not
drawn on a domestic branch of a United States financial institution. If a check
drawn on a foreign financial institution is accepted, a shareholder may be
subject to additional bank charges for clearance and currency conversion.
The Fund also reserves the right, following shareholder notification, to
charge a service fee on non-retirement accounts of the Class A Shares and Class
B Shares that have remained below the minimum stated account balance for a
period of three or more consecutive months. Holders of such accounts may be
notified of their below minimum status and advised that they have until the end
of the current calendar quarter to raise their balance to the stated minimum. If
the account has not reached the minimum balance requirement by that time, the
Fund will charge a $9 fee for that quarter and each subsequent calendar quarter
until the account is brought up to the minimum balance. The service fee will be
deducted from the account during the first week of each calendar quarter for the
previous quarter, and will be used to help defray the cost of maintaining low
balance accounts. No fees will be charged without proper notice and no
contingent deferred sales charge will apply to such assessments.
The following supplements Investment Manager and Sub-Adviser under
Management of the Fund on page 32:
On March 29, 1995, shareholders of each of the International Equity
Series, the Global Bond Series and the Global Assets Series of the Fund approved
a new Investment Management Agreement with Delaware International, an indirect
wholly-owned subsidiary of Delaware Management Holdings, Inc. ("DMH"). In
addition, shareholders of the Global Assets Series approved a new Sub-Advisory
Agreement between Delaware International and Delaware Management Company, Inc.
("DMC"), an indirect wholly-owned subsidiary of DMH and an affiliate of Delaware
International. The approval of new Agreements was subject to the completion of
the merger (the "Merger") between DMH and a wholly-owned subsidiary of Lincoln
National Corporation ("Lincoln National") which occurred on April 3, 1995.
Accordingly, the previous Investment Management Agreements terminated and the
new Investment Management Agreements became effective on that date.
<PAGE>
As a result of the Merger, Delaware International, DMC and their two
affiliates, Delaware Service Company, Inc., the Fund's shareholder servicing,
dividend disbursing and transfer agent, and Delaware Distributors, L.P., the
Fund's national distributor became indirect wholly-owned subsidiaries of Lincoln
National. Lincoln National, with headquarters in Fort Wayne, Indiana, is a
diversified organization with operations in many aspects of the financial
services industry, including insurance and investment management.
Under the new Agreements, Delaware International and DMC will be paid at
the same annual fee rates and on the same terms as they were under the previous
Agreements. In addition, the investment approach and operation of each Series of
the Fund will remain substantially unchanged.
<PAGE>
June 30, 1995
DELAWARE GROUP GLOBAL & INTERNATIONAL FUNDS, INC.
INTERNATIONAL EQUITY FUND INSTITUTIONAL CLASS
GLOBAL BOND FUND INSTITUTIONAL CLASS
GLOBAL ASSETS FUND INSTITUTIONAL CLASS
Supplement to Prospectus dated March 10, 1995
The following supplements the information which appears on page 1:
Unaudited financial statements for the International Equity Series for
the six months ended May 31, 1995, and the Global Bond Series and the Global
Assets Series for the five months ended May 31, 1995, (individually and
collectively the "Series") are included in Delaware Group Global & International
Funds, Inc.'s (the "Fund") Statement of Additional Information ("Part B").
The following revises the information under Summary of Expenses and
Management of the Fund relating to the Global Bond Fund Institutional Class and
the Global Assets Fund Institutional Class which appears on pages 4 and 21,
respectively:
Delaware International Advisers Ltd. ("Delaware International") has
elected voluntarily to waive that portion, if any, of the annual management fees
payable by the Global Bond Series and the Global Assets Series to the extent
necessary to ensure that the Total Operating Expenses of, respectively, the
Global Bond Fund Institutional Class and the Global Assets Fund Institutional
Class do not exceed 0.95% (in both cases, exclusive of taxes, interest,
brokerage commissions and extraordinary expenses) through November 30, 1995.
The following supplements the Financial Highlights information which
appears on page 5:
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
The following unaudited financial highlights for the International Equity Fund
Institutional Class, the Global Bond Fund Institutional Class and the Global
Assets Fund Institutional Class are derived from the unaudited financial
statements of Delaware Group Global & International Funds, Inc. - International
Equity Series for the six-month period ended May 31, 1995, and Global Bond
Series and Global Assets Series for the five-month period ended May 31, 1995.
The data should be read in conjunction with the financial statements and related
notes which are included in Part B.
- -------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
International Equity Fund Global Bond Fund Global Assets Fund
Institutional Class Institutional Class Institutional Class
------------------------- ------------------- ------------------
Period Period Period
12/1/94 12/27/94(2) 12/27/94(2)
through through through
5/31/95(1) 5/31/95 5/31/95
(Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C>
Net Asset Value, Beginning of Period........................ $11.970 $10.000 $10.000
Income From Investment Operations
- ---------------------------------
Net Investment Income (Loss)................................ (0.133) 0.328 0.216
Net Gains (Losses) on Securities
(both realized and unrealized)..................... 0.703 0.522 0.974
------ ------- -------
Total From Investment Operations........................ 0.570 0.850 1.190
------ ------- -------
Less Distributions
- ------------------
Dividends From Net Investment Income........................ (0.160) (0.240) (0.080)
Distributions From Capital Gains............................ (0.470) none none
Returns of Capital.......................................... none none none
------ ------- -------
Total Distributions..................................... (0.630) (0.240) (0.080)
------ ------- -------
Net Asset Value, End of Period.............................. $11.910 $10.610 $11.110
====== ======= =======
- ------------------------------------------------------------
Total Return................................................ 5.01%(1) 8.59%(2)(3) 11.94%(2)(3)
- ------------
- ------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------
Net Assets, End of Period (000's omitted)................... $10,098 $787 $1,582
Ratio of Expenses to Average Daily Net Assets............... 1.78%(1) 0.95%(2) 0.95%(2)
Ratio of Expenses to Average Daily Net Assets
Prior to Expense Limitation............................. --- 16.25% 10.85%
Ratio of Net Investment Income to Average Daily Net Assets.. (2.64%)(1) 7.37%(2) 5.05%(2)
Ratio of Net Investment Income to Average Daily Net Assets
Prior to Expense Limitation............................. --- (7.93%) (4.85%)
Portfolio Turnover Rate..................................... 25%(1) 70%(2) 85%(2)
</TABLE>
- ------------
1 Ratios have been annualized but total return has not been annualized.
2 Date of initial public offering; ratios have been annualized but total return
has not been annualized.
3 Total return reflects the voluntary fee waiver referenced above.
<PAGE>
The following supplements International Equity Fund A Class,
International Equity Fund B Class, Global Bond Fund A Class, Global Bond Fund B
Class, Global Assets Fund A Class and Global Assets Fund B Class under Buying
Shares on page 15:
The 12b-1 Plan distribution expenses with respect to the Class A Shares
and the Class B Shares of a Series, the front-end sales charge and the limited
contingent deferred sales charge, if applicable, with respect to the Class A
Shares of a Series and the contingent deferred sales charge with respect to the
Class B Shares of a Series may affect the performance of those classes.
The following supplements The Conditions of Your Purchase under Buying
Shares on page 16:
The Fund reserves the right to reject purchases by check that are not
drawn on a domestic branch of a United States financial institution. If a check
drawn on a foreign financial institution is accepted, a shareholder may be
subject to additional bank charges for clearance and currency conversion.
The following supplements Investment Manager and Sub-Adviser under
Management of the Fund on page 21:
On March 29, 1995, shareholders of each of the International Equity
Series, the Global Bond Series and the Global Assets Series of the Fund approved
a new Investment Management Agreement with Delaware International, an indirect
wholly-owned subsidiary of Delaware Management Holdings, Inc. ("DMH"). In
addition, shareholders of the Global Assets Series approved a new Sub-Advisory
Agreement between Delaware International and Delaware Management Company, Inc.
("DMC"), an indirect wholly-owned subsidiary of DMH and an affiliate of Delaware
International. The approval of new Agreements was subject to the completion of
the merger (the "Merger") between DMH and a wholly-owned subsidiary of Lincoln
National Corporation ("Lincoln National") which occurred on April 3, 1995.
Accordingly, the previous Investment Management Agreements terminated and the
new Investment Management Agreements became effective on that date.
As a result of the Merger, Delaware International, DMC and their two
affiliates, Delaware Service Company, Inc., the Fund's shareholder servicing,
dividend disbursing and transfer agent, and Delaware Distributors, L.P., the
Fund's national distributor became indirect wholly-owned subsidiaries of Lincoln
National. Lincoln National, with headquarters in Fort Wayne, Indiana, is a
diversified organization with operations in many aspects of the financial
services industry, including insurance and investment management.
Under the new Agreements, Delaware International and DMC will be paid at
the same annual fee rates and on the same terms as they were under the previous
Agreements. In addition, the investment approach and operation of each Series of
the Fund will remain substantially unchanged.
<PAGE>
DELAWARE GROUP GLOBAL & INTERNATIONAL FUNDS, INC.
INTERNATIONAL EQUITY SERIES
GLOBAL BOND SERIES
GLOBAL ASSETS SERIES
Supplement dated June 30, 1995
To Statement of Additional Information
dated March 10, 1995
The following supplements the information under Performance Information
which appears on pages 8-12:
The performance of the International Equity Fund A Class and the
International Equity Fund Institutional Class, as shown below, is the average
annual total return quotations for the one- and three- year periods ended May
31, 1995 and for the life of these Classes. The average annual total return for
the International Equity Fund A Class at offer reflects the maximum front-end
sales charges paid on the purchase of shares. The average annual total return
for International Equity Fund A Class at net asset value (NAV) does not reflect
the payment of the maximum front-end sales charge of 5.75%. Pursuant to
applicable regulation, total return shown for the International Equity Fund
Institutional Class for the periods prior to the commencement of operations of
such class is calculated by taking the performance of the International Equity
Fund A Class and adjusting it to reflect the elimination of all front-end sales
charges. However, for those periods, no adjustment has been made to eliminate
the impact of 12b-1 payments, and performance would have been affected had such
an adjustment been made. The performance of the International Equity Fund B
Class, as shown below, is the aggregate total return quotation for the period
September 6, 1994 (date of initial public offering) through May 31, 1995. The
aggregate total return for International Equity Fund B Class (including deferred
sales charge) reflects the deduction of the applicable CDSC that would be paid
if the shares were redeemed at May 31, 1995. The aggregate total return for
International Equity Fund B Class (excluding deferred sales charge) assumes the
shares were not redeemed at May 31, 1995 and therefore does not reflect the
deduction of a CDSC. Securities prices fluctuated during the periods covered and
the past results should not be considered as representative of future
performance.
<PAGE>
<TABLE>
<CAPTION>
Aggregate Total Return(1)
International International
Average Annual Total Return(1) Equity Fund Equity Fund
International International International B Class B Class
Equity Fund Equity Fund Equity Fund (Including (Excluding
A Class A Class Institutional Deferred Sales Deferred Sales
(at Offer) (at NAV) Class(2) Charge) Charge)
<S> <C> <C> <C> <C> <C> <C>
Period
1 year 9/6/94(4)
ended through
5/31/95 (3.43%) 2.49% 2.78% 5/31/95 (6.79%) (3.11%)
3 years
ended
5/31/95 5.84% 7.96% 8.23%
Period
10/31/91(3)
through
5/31/95 7.12% 8.90% 9.14%
</TABLE>
1 Beginning June 1, 1994, Delaware International Advisers Ltd. ("Delaware
International") elected voluntarily to waive that portion, if any, of the
annual management fees payable by the International Equity Series to the
extent necessary to ensure that the Total Operating Expenses of the
International Equity Fund A Class and the International Equity Fund
Institutional Class did not exceed 1.50% (exclusive of taxes, interest,
brokerage commissions, extraordinary expenses and 12b-1 expenses) through
November 30, 1994. Through November 30, 1994, this waiver was also applicable
to the International Equity Fund B Class. Prior to June 1, 1994, a waiver and
reimbursement commitment was in place to ensure that expenses did not exceed
1.25% (exclusive of taxes, interest, brokerage commissions, extraordinary
expenses, but inclusive of 12b-1 fees) for the International Equity Fund A
Class and .95% (exclusive of taxes, interest, brokerage commissions and
extraordinary expenses) for the International Equity Fund Institutional
Class. In the absence of such waiver, performance would have been affected
negatively.
2 Date of initial public offering was November 9, 1992.
3 Date of initial public offering of International Equity Fund A Class.
4 Date of initial public offering of International Equity Fund B Class; total
return for this short of a time period may not be representative of
longer-term results.
<PAGE>
The performance for each Class of the Global Bond Series and the Global
Assets Series, as shown below, is the aggregate total return quotations for the
life of each Class. The aggregate total return for the Class A Shares of these
Series at offer reflects the maximum front-end sales charge paid on the purchase
of shares. The aggregate total return for the Class A Shares of these Series at
net asset value (NAV) does not reflect the deduction of the maximum front-end
sales charge. The aggregate total return for the Class B Shares of these Series
(including deferred sales charge) reflects the deduction of the applicable CDSC
that would be paid if the shares were redeemed at May 31, 1995. The aggregate
total return for the Class B Shares of these Series (excluding deferred sales
charge) assumes the shares were not redeemed at May 31, 1995 and therefore does
not reflect the deduction of a CDSC.
<TABLE>
<CAPTION>
Aggregate Total Return(1)
Global Bond Global Bond
Global Bond Global Bond Global Bond Fund B Class(3) Fund B Class(3)
Fund A Fund A Fund (Including (Excluding
Class Class Institutional Deferred Sales Deferred Sales
(at Offer) (at NAV) Class Charge) Charge)
<S> <C> <C> <C> <C> <C>
Period
12/27/94(2)
through
5/31/95 3.33% 8.49% 8.59% 4.24% 8.24%
Global Assets Global Assets
Fund B Fund B
Global Assets Global Assets Global Assets Class(3) Class(3)
Fund A Fund A Fund (Including (Excluding
Class Class Institutional Deferred Sales Deferred Sales
(at Offer) (at NAV) Class Charge) Charge)
Period
12/27/94(2)
through
5/31/95 5.41% 11.84% 11.94% 7.53% 11.53%
</TABLE>
1 Delaware International has elected to voluntarily waive that portion, if
any, of the annual management fees payable by the Global Bond Series and the
Global Asset Series to ensure that the Total Operating Expenses of these
Series (exclusive of taxes, interest, brokerage commissions, extraordinary
expenses and, in the case of the Class A Shares and the Class B Shares of
these Series, 12b-1 expenses) do not exceed .95% through November 30, 1995.
In the absence of such waiver, performance would have been affected
negatively.
2 Date of initial public offering; total return for this short of a time period
may not be representative of longer-term results.
3. Only one share is outstanding.
The 30-day yields of the Global Bond Fund A Class, the Global Bond Fund B
Class and the Global Bond Fund Institutional Class as of May 31, 1995, were
7.02%, 6.51% and 7.65%, respectively, reflecting the waiver of fees by Delaware
International. Only one share of the Global Bond Fund B Class is outstanding.
Yield assumes the maximum front-end sales charge, if any, and does not reflect
the deduction of any contingent deferred sales charge.
<PAGE>
The following tables are an example, for purposes of illustration only,
of aggregate total return performance for the International Equity Fund A Class
and the International Equity Fund Institutional Class for the three-, six- and
nine-month periods ended May 31, 1995, for the one- and three-year periods ended
May 31, 1995 and for the life of these Classes. Cumulative total return for the
three- and six- month period ended May 31, 1995 and for the period September 6,
1994 (date of initial public offering) through May 31, 1995 is also provided
below for the International Equity Fund B Class. Pursuant to applicable
regulation, total return shown for the International Equity Fund Institutional
Class for the periods prior to the commencement of operations of such Class is
calculated by taking the performance of the International Equity Fund A Class
and adjusting it to reflect the elimination of all sales charges. However, for
those periods, no adjustment has been made to eliminate the impact of 12b-1
payments, and performance may have been affected had such an adjustment been
made.
<TABLE>
<CAPTION>
Aggregate Total Return(1)
International International
Equity Fund Equity Fund
International International B Class B Class
Equity Fund Equity Fund (Including (Excluding
A Class Institutional Deferred Sales Deferred Sales
(at Offer) Class(2) Charge) Charge)
<S> <C> <C> <C> <C> <C>
3 months 3 months
ended ended
5/31/95 (0.41%) 5.76% 5/31/95 1.43% 5.43%
6 months 6 months
ended ended
5/31/95 (1.24%) 5.01% 5/31/95 0.48% 4.45%
Period
9 months 9/6/94(4)
ended through
5/31/95 (8.46%) (2.62%) 5/31/95 (6.79%) (3.11%)
1 year
ended
5/31/95 (3.43%) 2.78%
3 years
ended
5/31/95 18.57% 26.79%
10/31/91(3)
through
5/31/95 27.96% 36.81%
</TABLE>
- ------------
1 Beginning June 1, 1994, Delaware International elected voluntarily to waive
that portion, if any, of the annual management fees payable by the
International Equity Series to the extent necessary to ensure that the Total
Operating Expenses of the International Equity Fund A Class and the
International Equity Fund Institutional Class did not exceed 1.50% (exclusive
of taxes, interest, brokerage commissions, extraordinary expenses and 12b-1
expenses) through November 30, 1994. Through November 30, 1994, this waiver
was also applicable to the International Equity Fund B Class. Prior to June
1, 1994, a waiver and reimbursement commitment was in place to ensure that
expenses did not exceed 1.25% (exclusive of taxes, interest, brokerage
commissions, extraordinary expenses, but inclusive of 12b-1 fees) for the
International Equity Fund A Class and .95% (exclusive of taxes, interest,
brokerage commissions and extraordinary expenses) for the International
Equity Fund Institutional Class. In the absence of such waiver, performance
would have been affected negatively.
2 Date of initial public offering was November 9, 1992.
3 Date of initial public offering of International Equity Fund A Class.
4 Date of initial public offering of International Equity Fund B Class; total
return for this short of a time period may not be representative of
longer-term results.
<PAGE>
Aggregate total return performance for each Class of the Global Bond
Series and the Global Assets Series for the three-month period ended May 31,
1995 and for the life of these Classes is provided below.
Aggregate Total Return(1)
Global Bond Global Bond
Fund B Fund B
Global Bond Global Bond Class(3) Class(3)
Fund A Fund (Including (Excluding
Class Institutional Deferred Sales Deferred Sales
(at Offer) Class Charge) Charge)
3 months
ended
5/31/95 0.99% 6.05% 1.66% 5.66%
Period
12/27/94(2)
through
5/31/95 3.33% 8.59% 4.24% 8.24%
Global Assets Global Assets
Fund B Fund B
Global Assets Global Assets Class(3) Class(3)
Fund A Fund (Including (Excluding
Class Institutional Deferred Sales Deferred Sales
(at Offer) Class Charge) Charge)
3 months
ended
5/31/95 2.23% 8.47% 4.07% 8.07%
Period
12/27/94(2)
through
5/31/95 5.41% 11.94% 7.53% 11.53%
- ------------
1 Delaware International has elected to voluntarily waive that portion, if
any, of the annual management fees payable by the Global Bond Series and the
Global Asset Series to ensure that the Total Operating Expenses of these
Series (exclusive of taxes, interest, brokerage commissions, extraordinary
expenses and, in the case of the Class A Shares and the Class B Shares of
these Series, 12b-1 expenses) do not exceed .95% through November 30, 1995.
In the absence of such waiver, performance would have been affected
negatively.
2 Date of initial public offering; total return for this short of a time period
may not be representative of longer-term results.
3. Only one share is outstanding.
The following supplements the information under Purchasing Shares which
appears on page 14:
The minimum initial and subsequent investments with respect to Class A
Shares of each Series will be waived for purchases by officers, directors and
employees of any Delaware Group fund, Delaware Management Company, Inc. ("DMC"),
including Delaware International, or any of DMC's affiliates if the purchases
are made pursuant to a payroll deduction program.
<PAGE>
The following revises the information under Purchasing Shares - Buying At
Net Asset Value which appears on page 17:
Current and former officers, directors and employees of Delaware Group
Global & International Funds, Inc. the ("Fund"), any other fund in the Delaware
Group, DMC, including Delaware International, or any of DMC's affiliates that
may in the future be created, legal counsel to the funds and registered
representatives and employees of broker/dealers who have entered into Dealer's
Agreements with the Distributor may purchase Class A Shares and any such class
of shares of any of the funds in the Delaware Group, including any fund that may
be created, at the net asset value per share.
Beginning May 25, 1995, Class A Shares of each Series may be purchased at
net asset value by any investor within 90 days after a redemption of shares from
a fund outside the Delaware Group of funds provided that: 1) the redeemed shares
were purchased no more than five years before the proposed purchase of Class A
Shares of a Series; and 2) a front-end sales charge was paid in connection with
the purchase of the redeemed shares or a contingent deferred sales charge was
paid upon their redemption.
The following provides updated information under Officers and Directors
which appears on page 27:
On May 31, 1995, the Fund's officers and directors owned less than 1% and
approximately 1% of the outstanding shares of the International Equity Fund A
Class and the International Equity Fund Institutional Class, respectively. On
the same date, the Fund's officers and directors owned approximately 31% and 28%
of the outstanding shares of the Global Bond Fund A Class and the Global Bond
Fund Institutional Class, respectively, and approximately 15% and 14% of the
outstanding shares of the Global Assets Fund A Class and the Global Assets Fund
Institutional Class.
The following shareholders held 5% or more of a Class of shares as of May
31, 1995:
Delaware Management Company Employee Profit Sharing Trust, 1818 Market
Street, Philadelphia, PA 19103 held 276,331 shares (32.60%); PWH Savings, 1410
N. Westshore Blvd., Tampa, FL 32203 held 243,101 shares (28.70%); and Charles
Schwab & Co Inc., Attn Mutual Fund Dept., 101 Montgomery Street, San Francisco,
CA 94104 held 57,472 shares (6.80%) of the outstanding shares of the
International Equity Fund Institutional Class. Shares held by Delaware
Management Company Employee Profit Sharing Trust are beneficially owned by
participants in the plan.
Brian F. Wruble, 7801 Huron St., Philadelphia, PA 19118 held 5,037 shares
(15.35%); Jay Lewis, 525 West End Ave., New York, NY 10024 held 4,545 shares
(13.88%); Delaware Management Company, Inc., c/o Joseph H. Hastings, 1818 Market
Street, Philadelphia, PA 19103 held 3,526 shares (10.75%); and William H.
McClure, FBO William H. McClure, 1256 N. Dorado Way, Tucson, AZ 85715 held 2,434
shares (7.42%) of the outstanding shares of the Global Assets Fund A Class.
Delaware Management Company, Inc., c/o Joseph H. Hastings, 1818 Market
Street, Philadelphia, PA 19103 held 1 share (100%) of the outstanding shares
of the Global Assets Fund B Class.
Delaware Management Company, Inc., c/o Joseph H. Hastings, 1818 Market
Street, Philadelphia, PA 19103 held 80,602 shares (56.62%) and Delaware
Management Company Employee Profit Sharing Trust, 1818 Market Street,
Philadelphia, PA 19103 held 61,743 shares (43.38%) of the outstanding shares of
the Global Assets Fund Institutional Class. As participants in Delaware
Management Company Employee Profit Sharing Trust, Harold A. Ofstie held 18,001
shares (12.65%) and Edward N. Antoian, Dennis L. Adams and Richard G. Unruh
separately held 10,075 shares (7.08%) of the outstanding shares of this Class.
Shares held by Delaware Management Company Employee Profit Sharing Trust are
beneficially owned by participants in the plan.
Prudential Securities, FBO Russell W. Bagley, IRA DTD 4/13/95, 5700
Northwood Rdg., Bloomington, MN 55437 held 8,636 shares (27.07%); Paul E.
Suckow, 1219 Denbigh Ln., Radnor, PA 19087 held 5,127 shares (16.07%); Brian F.
Wruble, 7801 Huron St., Philadelphia, PA 19118 held 5,117 shares (16.04%); and
Delaware Management Company, Inc., c/o Joseph H. Hastings, 1818 Market Street,
Philadelphia, PA 19103 held 3,582 shares (11.23%) of the outstanding shares of
the Global Bond Fund A Class.
<PAGE>
Delaware Management Company, Inc., c/o Joseph H. Hastings, 1818 Market
Street, Philadelphia, PA 19103 held 1 share (100%) of the outstanding shares of
the Global Bond Fund B Class.
Delaware Management Company, Inc., c/o Joseph H. Hastings, 1818 Market
Street, Philadelphia, PA 19103 held 40,938 shares (55.18%); and Delaware
Management Company Employee Profit Sharing Trust, 1818 Market Street,
Philadelphia, PA 19103 held 33,255 shares (44.82%) of the outstanding shares of
the Global Bond Fund Institutional Class. As participants in Delaware Management
Company Employee Profit Sharing Trust, Edward N. Antoian and Richard G. Unruh
separately held 10,257 shares (13.82%) and Dennis L. Adams held 10,234 shares
(13.79%) of the outstanding shares of this Class. Shares held by Delaware
Management Company Employee Profit Sharing Trust are beneficially owned by
participants in the plan.
On April 3, 1995, a merger between Delaware Management Holdings, Inc.
("DMH") and a wholly- owned subsidiary of Lincoln National Corporation ("Lincoln
National") was completed. In connection with the merger, new Investment
Management Agreements between the Fund on behalf of each Series and Delaware
International and a new Sub-Advisory Agreement between Delaware International on
behalf of the Global Assets Series and DMC was executed following shareholder
approval. As a result of the merger, DMH became a wholly-owned subsidiary and
Delaware International and DMC became indirect, wholly-owned subsidiaries of
Lincoln National and each are now subject to the ultimate control of Lincoln
National. Lincoln National, with headquarters in Fort Wayne, Indiana, is a
diversified organization with operations in many aspects of the financial
services industry, including insurance and investment management.
The following replaces information regarding officers and directors of
the Fund: (Unless otherwise noted, the address of each person is One Commerce
Square, Philadelphia, PA 19103.)
<PAGE>
*Wayne A. Stork (58)
Chairman, Director and/or Trustee of the Fund and each of the other 16
funds in the Delaware Group.
Chairman, Chief Executive Officer, Chief Investment Officer and Director
of Delaware Management Company, Inc.
Chairman, Chief Executive Officer and Director of Delaware Management
Holdings, Inc., DMH Corp., Delaware International Advisers Ltd.,
Delaware International Holdings Ltd. and Founders Holdings, Inc.
Chairman and Director of Delaware Management Trust Company.
Director of Delaware Distributors, Inc., Delaware Service Company, Inc.
and Delaware Investment Counselors, Inc.
During the past five years, Mr. Stork has served in various executive
capacities at different times within the Delaware organization.
Brian F. Wruble (52)
President and Chief Executive Officer of the Fund and 15 other funds in
the Delaware Group (which excludes Delaware Pooled Trust, Inc.).
Director of Delaware International Advisers Ltd. and Delaware Investment
Counselors, Inc.
President, Chief Operating Officer and Director of Delaware Management
Holdings, Inc., DMH Corp. and Delaware Management Company, Inc.
Chairman, Chief Executive Officer and Director of Delaware Service
Company, Inc.
Chairman and Director of Delaware Distributors, Inc.
Chairman of Delaware Distributors, L.P.
President of Founders Holdings, Inc.
From 1992 to 1995, Mr. Wruble was a director of the Fund and a director
and/or trustee of each of the other funds in the Delaware Group.
Before joining the Delaware Group in 1992, Mr. Wruble was
Chairman, President and Chief Executive Officer of Equitable
Capital Management Corporation from July 1985 through April 1992
and was Executive Vice President of Equitable Life Assurance
Society of the United States from September 1984 through April
1992 and Chief Investment Officer from April 1991 through April
1992. Mr. Wruble has previously held executive positions with
Smith Barney, Harris Upham, and H.C. Wainwright & Co.
- ------------
*Director affiliated with the investment manager of the Fund and considered an
"interested person" as defined in the Investment Company Act of 1940.
<PAGE>
Winthrop S. Jessup (49)
Executive Vice President of the Fund and 15 other funds in the Delaware
Group (which excludes Delaware Pooled Trust, Inc.).
President and Chief Executive Officer of Delaware Pooled Trust, Inc.
President and Director of Delaware Investment Counselors, Inc.
Executive Vice President and Director of Delaware Management Holdings,
Inc., DMH Corp., Delaware Management Company, Inc., Delaware
Management Trust Company, Delaware International Holdings Ltd. and
Founders Holdings, Inc.
Vice Chairman and Director of Delaware Distributors, Inc.
Vice Chairman of Delaware Distributors, L.P.
Director of Delaware Service Company, Inc. and Delaware International
Advisers Ltd.
During the past five years, Mr. Jessup has served in various executive
capacities at different times within the Delaware organization.
Richard G. Unruh, Jr. (55)
Executive Vice President of the Fund and each of the other 16 funds in
the Delaware Group.
Executive Vice President and Director of Delaware Management Company,
Inc.
Senior Vice President of Delaware Management Holdings, Inc.
Director of Delaware International Advisers Ltd.
During the past five years, Mr. Unruh has served in various executive
capacities at different times within the Delaware organization.
Walter P. Babich (67)
Director and/or Trustee of the Fund and each of the other 16 funds in the
Delaware Group.
460 North Gulph Road, King of Prussia, PA 19406.
Board Chairman, Citadel Constructors, Inc.
From 1986 to 1988, Mr. Babich was a partner of Irwin & Leighton and
from 1988 to 1991, he was a partner of I&L Investors.
Anthony D. Knerr (56)
Director and/or Trustee of the Fund and each of the other 16 funds in the
Delaware Group.
500 Fifth Avenue, New York, NY 10110.
Consultant, Anthony Knerr & Associates.
From 1982 to 1988, Mr. Knerr was Executive Vice President/Finance and
Treasurer of Columbia University, New York. From 1987 to 1989, he
was also a lecturer in English at the University. In addition,
Mr. Knerr was Chairman of The Publishing Group, Inc., New York,
from 1988 to 1990. Mr. Knerr founded The Publishing Group, Inc. in
1988.
Ann R. Leven (54)
Director and/or Trustee of the Fund and each of the other 16 funds in the
Delaware Group.
785 Park Avenue, New York, NY 10021.
Treasurer, National Gallery of Art.
From 1984 to 1990, Ms. Leven was Treasurer and Chief Fiscal Officer of
the Smithsonian Institution, Washington, DC, and from 1975 to
1994, she was Adjunct Professor of Columbia Business School.
<PAGE>
W. Thacher Longstreth (74)
Director and/or Trustee of the Fund and each of the other 16 funds in the
Delaware Group.
1617 John F. Kennedy Boulevard, Philadelphia, PA 19103.
Vice Chairman, Packquisition Corp., a financial printing, commercial
printing and information processing firm.
Philadelphia City Councilman.
President, MLW, Associates.
Director, Tasty Baking Company.
Director, Healthcare Services Group.
Charles E. Peck (69)
Director and/or Trustee of the Fund and each of the other 16 funds in the
Delaware Group.
P.O. Box 1102, Columbia, MD 21044.
Secretary, Enterprise Homes, Inc.
From 1981 to 1990, Mr. Peck was Chairman and Chief Executive Officer of
The Ryland Group, Inc., Columbia, MD.
David K. Downes (55)
Senior Vice President/Chief Administrative Officer/Chief Financial
Officer of the Fund, each of the other 16 funds in the Delaware
Group and Delaware Management Company, Inc.
Chief Executive Officer and Director of Delaware Management Trust
Company.
Senior Vice President/Chief Administrative Officer/Chief Financial
Officer/Treasurer of Delaware Management Holdings, Inc.
Senior Vice President/Chief Financial Officer/Treasurer and Director of
DMH Corp.
Senior Vice President/Chief Administrative Officer and Director of
Delaware Distributors, Inc.
Senior Vice President/Chief Administrative Officer of Delaware
Distributors, L.P.
Senior Vice President/Chief Administrative Officer/Chief Financial
Officer and Director of Delaware Service Company, Inc.
Chief Financial Officer and Director of Delaware International Holdings
Ltd.
Senior Vice President/Chief Financial Officer/Treasurer of Delaware
Investment Counselors, Inc.
Senior Vice President/Chief Financial Officer and Director of Founders
Holdings, Inc.
Director of Delaware International Advisers Ltd.
Before joining the Delaware Group in 1992, Mr. Downes was Chief
Administrative Officer, Chief Financial Officer and Treasurer of
Equitable Capital Management Corporation, New York, from December
1985 through August 1992, Executive Vice President from December
1985 through March 1992, and Vice Chairman from March 1992 through
August 1992.
<PAGE>
George M. Chamberlain, Jr. (48)
Senior Vice President and Secretary of the Fund, each of the other 16
funds in the Delaware Group, Delaware Management Holdings, Inc.,
Delaware Distributors, L.P. and Delaware Investment Counselors,
Inc.
Senior Vice President, Secretary and Director of DMH Corp., Delaware
Management Company, Inc., Delaware Distributors, Inc., Delaware
Service Company, Inc., Delaware Management Trust Company and
Founders Holdings, Inc.
Secretary and Director of Delaware International Holdings Ltd.
Director of Delaware International Advisers Ltd.
Attorney.
During the past five years, Mr. Chamberlain has served in various
capacities at different times within the Delaware organization.
Paul E. Suckow (47)
Senior Vice President/Chief Investment Officer, Fixed Income of the Fund,
each of the other 16 funds in the Delaware Group, Delaware
Management Holdings, Inc. and Delaware Management Company, Inc.
Senior Vice President and Director of Founders Holdings, Inc.
Director of Founders CBO Corporation.
Before returning to the Delaware Group in 1993, Mr. Suckow was Executive
Vice President and Director of Fixed Income for Oppenheimer
Management Corporation, New York, NY from 1985 to 1992. Prior to
that, Mr. Suckow was a fixed income portfolio manager for the
Delaware Group.
George H. Burwell (33)
Vice President/Senior Portfolio Manager of the Fund, of seven other
equity funds in the Delaware Group and of Delaware Management
Company, Inc.
Before joining the Delaware Group in 1992, Mr. Burwell was a portfolio
manager for Midlantic Bank, New Jersey. In addition, he was a
security analyst for Balis & Zorn, New York and for First Fidelity
Bank, New Jersey.
Paul A. Matlack (35)
Vice President/Senior Portfolio Manager of the Fund, of nine other
income funds and the closed-end funds in the Delaware Group and of
Delaware Management Company, Inc.
Vice President of Founders Holdings, Inc.
Secretary and Director of Founders CBO Corporation.
During the past five years, Mr. Nichols has served in various capacities
at different times within the Delaware organization.
Gerald T. Nichols (37)
Vice President/Senior Portfolio Manager of the Fund, of nine other
income funds and the closed-end funds in the Delaware Group and of
Delaware Management Company, Inc.
Vice President of Founders Holdings, Inc.
Treasurer and Director of Founders CBO Corporation.
During the past five years, Mr. Nichols has served in various capacities
at different times within the Delaware organization.
<PAGE>
James R. Raith, Jr. (44)
Vice President/Senior Portfolio Manager of the Fund, of nine other
income funds in the Delaware
Group and of Delaware Management Company, Inc.
Vice President of Founders Holdings, Inc.
President and Director of Founders CBO Corporation.
During the past five years, Mr. Raith has served in various capacities at
different times within the Delaware organization.
Joseph H. Hastings (45)
Vice President/Corporate Controller of the Fund, each of the other 16
funds in the Delaware Group, Delaware Management Holdings, Inc.,
DMH Corp., Delaware Management Company, Inc., Delaware
Distributors, L.P., Delaware Distributors, Inc., Delaware Service
Company, Inc., Delaware International Holdings Ltd., Delaware
Investment Counselors, Inc. and Founders Holdings, Inc.
Vice President/Corporate Controller/Treasurer of Delaware Management
Trust Company.
Assistant Treasurer of Founders CBO Corporation.
1818 Market Street, Philadelphia, PA 19103.
Before joining the Delaware Group in 1992, Mr. Hastings was Chief
Financial Officer for Prudential Residential Services, L.P., New
York, NY from 1989 to 1992. Prior to that, Mr. Hastings served as
Controller and Treasurer for Fine Homes International, L.P.,
Stamford, CT from 1987 to 1989.
<PAGE>
The following supplements the Financial Statements section which appears
on page 40:
Unaudited financial information for the International Equity Series, the
Global Bond Series and the Global Assets Series for the period ended May 31,
1995 is provided below.
<PAGE>
Delaware Group Global & International Funds, Inc. -
International Equity Series
Statement of Net Assets
May 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
Number Market
of Shares Value
(U.S. $)
<S> <C> <C>
COMMON STOCK-93.54%
Australia-8.28%
CSR Limited 133,989 $ 423,387
National Australia Bank 311,470 2,658,918
Pacific Dunlop 864,192 1,853,662
Santos 355,098 876,691
-----------
5,812,658
-----------
Belgium-7.06%
Cimenterics CBR Cementbedrij 2,840 1,125,272
* Cimenterics CBR Cementbedrij Put Warrants 2,840 26,517
Electrabel NPV 10,490 2,204,685
G.I.B. Holdings 33,800 1,586,116
G.I.B. Holdings-VVPR 380 17,884
-----------
4,960,474
-----------
Canada-2.24%
BC Telephone 91,250 1,574,712
-----------
1,574,712
-----------
France-5.61%
Alcatel Alsthom 11,012 1,000,890
Compagnie de Saint Gobain 10,766 1,344,992
Elf Aquitaine 19,749 1,593,174
-----------
3,939,056
-----------
Germany-6.29%
Bayer AG 8,009 1,934,516
Continental AG 5,450 821,550
Siemens AG 3,490 1,657,318
-----------
4,413,384
-----------
Hong Kong-2.56%
Hong Kong Electric 335,000 1,191,015
Wharf (Holdings) Limited 184,000 604,215
-----------
1,795,230
-----------
Indonesia-1.61%
PT Bank Dagang Nasional 650,000 1,131,295
-----------
1,131,295
-----------
<PAGE>
Japan-14.00%
Amano 133,000 1,728,448
Canon Electronics 96,000 1,497,122
Eisai Co. Limited 88,000 1,549,105
Kinki Coca-Cola Bottling Y50 111,000 1,573,679
Matsushita Electric 130,000 2,011,994
Senko 222,000 1,463,522
-----------
9,823,870
-----------
Malaysia-2.10%
Oriental Holdings Berhad 103,000 539,048
Sime Darby Berhad 330,000 937,158
-----------
1,476,206
-----------
Netherlands-6.58%
Elsevier - CVA 84,000 971,129
Koninklijke Van Ommrn 36,000 1,071,198
Royal Dutch Petroleum 9,820 1,227,112
Unilever NV - CVA 10,730 1,348,961
-----------
4,618,400
-----------
New Zealand-2.97%
Clarter Holt Harvey Limited 277,300 698,131
Telecom Corp. of New Zealand 348,920 1,390,674
-----------
2,088,805
-----------
Philippines-1.11%
Philippine Long Distance
Telephone Company ADR 10,900 777,988
-----------
777,988
-----------
Singapore-1.67%
Jardine Matheson Holdings Limited 149,800 1,175,930
-----------
1,175,930
-----------
</TABLE>
- ------------
* Known and does business as International Equity Fund.
<PAGE>
Statement of Net ssets (Continued)
<TABLE>
<CAPTION>
Number Market
of Shares Value
(U.S. $)
<S> <C> <C>
COMMON STOCK (Continued)
Spain-3.44%
Banco Central Hispanoamer SA 23,452 $ 535,298
Telefonica de Espana 143,500 1,883,368
-----------
2,418,666
-----------
United Kingdom-28.02%
Bass plc 200,000 1,852,264
Blue Circle Industries 347,000 1,670,230
British Airways plc 250,000 1,632,248
British Gas plc 315,000 1,513,701
Cable & Wireless 275,000 1,843,527
* Costain Group plc 509,627 89,053
Dawson International 647,500 1,224,027
GKN plc 152,900 1,522,928
Great Universal Stores 178,200 1,736,707
RTZ 118,700 1,516,041
Sears plc 880,350 1,538,340
Taylor Woodrow plc 900,825 1,674,290
Unigate 300,000 1,858,618
-----------
19,671,974
-----------
Total Common Stock (cost $62,012,850) 65,678,648
Principal -----------
Amount**
BONDS-0.71%
World Bank 10.625% 9/8/98 Sp62,000,000 497,203
-----------
Total Bonds (cost $518,172) 497,203
-----------
GOVERNMENT OBLIGATIONS-2.85%
Government of Canada 10.25% 3/15/14 C$2,300,000 2,000,109
-----------
Total Government Obligations (cost $1,972,794) 2,000,109
-----------
REPURCHASE AGREEMENTS-0.58%
With PaineWebber 6.125% 6/1/95
(dated 5/31/95, collateralized by
$392,000 U.S. Treasury Notes 7.75%
due 12/31/95 market value $429,470) $409,000 409,000
-----------
Total Repurchase Agreements (cost $409,000) 409,000
-----------
TOTAL MARKET VALUE OF SECURITIES-97.68%
(cost $64,912,816) 68,584,960
RECEIVABLES AND OTHER ASSETS NET OF LIABILITIES-2.32% 1,631,123
-----------
NET ASSETS APPLICABLE TO 5,911,815 SHARES
($.01 PAR VALUE) OUTSTANDING - 100.00% $ 70,216,083
===========
NET ASSET VALUE - INTERNATIONAL EQUITY FUND A CLASS
($58,553,242 / 4,931,755 shares) $ 11.87
===========
NET ASSET VALUE - INTERNATIONAL EQUITY FUND B CLASS
($1,564,576 / 132,214 shares) $ 11.83
===========
NET ASSET VALUE - INTERNATIONAL EQUITY FUND INSTITUTIONAL
CLASS ($10,098,265 / 847,846 shares) $ 11.91
===========
COMPONENTS OF NET ASSETS AT MAY 31, 1995:
Common stock $.01 par value, 500,000,000
shares authorized to the Fund with 50,000,000
shares allocated to the International Equity
Fund A Class, 50,000,000 shares allocated
to the International Equity Fund B Class
and 50,000,000 shares allocated to the
International Equity Fund Institutional
Class $ 66,746,810
Accumulated undistributed income:
Net investment income 302,869
Net realized loss on investments
and foreign currencies (748,189)
Net unrealized appreciation on
investments and foreign currencies 3,914,593
-----------
Total net assets $ 70,216,083
===========
</TABLE>
<PAGE>
- ------------
* Non-income producing security for the six months ended May 31, 1995.
** Principal amount is stated in the currency in which each bond is
denominated.
See accompanying notes
<PAGE>
Delaware Group Global & International Funds, Inc. -
Global Assets Series
Statement of Net Assets
May 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
Number Market
of Shares Value
(U.S. $)
<S> <C> <C>
COMMON STOCK-54.60%
Australia-3.08%
CRS Limited 4,150 $ 13,113
National Australia Bank 2,380 20,317
Pacific Dunlop 12,175 26,115
-----------
59,545
-----------
Belgium-1.80%
Electrabel NPV 110 23,119
G.I.B. Holdings 250 11,732
-----------
34,851
-----------
Canada-0.77%
BC Telephone 865 14,927
-----------
14,927
-----------
France-2.32%
Compagnie de Saint Gobain 230 28,734
Elf Aquitaine 200 16,134
-----------
44,868
-----------
Germany-2.24%
Bayer AG 110 26,570
RWE AG 50 16,861
-----------
43,431
-----------
Hong Kong-0.81%
Hong Kong Electric 3,500 12,443
Wharf (Holdings) Limited 1,000 3,284
-----------
15,727
-----------
Indonesia-0.36%
PT Bank Dagang Nasional 4,000 6,962
-----------
6,962
-----------
Japan-4.93%
Canon Electronics 1,000 15,595
Eisai Co Ltd 1,000 17,603
Hitachi Limited 2,000 19,305
Matsushita Electric 2,000 30,954
Yokohama Reito 1,000 12,051
-----------
95,508
-----------
Malaysia-0.63%
Sime Darby Berhad 4,300 12,211
-----------
12,211
-----------
Netherlands-2.75%
Elsevier - CVA 1,200 13,873
Koninklijke Van Ommrn 565 16,812
Royal Dutch Petroleum 180 22,493
-----------
53,178
-----------
<PAGE>
New Zealand-1.20%
Carter Holt Harvey Limited 2,300 5,790
Telecom Corp of New Zealand 4,400 17,537
-----------
23,327
-----------
Philippines-0.37%
Philippine Long Distance Telephone
Company ADR 100 7,138
-----------
7,138
-----------
Singapore-0.49%
Jardine Matheson Holdings Limited 1,200 9,420
-----------
9,420
-----------
Spain-1.71%
Banco Central Hispanoamer SA 635 14,494
Telefonica de Espana 1,425 18,702
-----------
33,196
-----------
United Kingdom-9.08%
Bass plc 2,800 25,932
Blue Circle Industries 4,400 21,179
British Airways plc 2,600 16,975
British Gas plc 4,000 19,222
</TABLE>
<PAGE>
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
Number Market
of Shares Value
(U.S. $)
<S> <C> <C>
COMMON STOCK (Continued)
United Kingdom (continued)
Dawson International plc 7,900 $ 14,934
GKN plc 2,100 20,917
RTZ 1,500 19,158
Sears plc 11,300 19,746
Taylor Woodrow plc 9,500 17,657
-----------
175,720
-----------
United States-22.06%
AT&T 200 10,150
Abbott Laboratories 200 8,000
Air Products & Chemicals 200 10,625
ALLTEL 500 12,313
Banta 200 6,650
ConAgra 600 20,025
Corning 200 6,400
Developers Diversified Realty 500 14,125
Diebold 200 8,325
duPont (EI) deNemours 200 13,575
Eaton 200 12,225
Exxon 200 14,275
Federal Home Loan 200 13,625
First USA 100 4,725
Fleetwood Enterprises 200 4,150
Foster Wheeler 200 6,575
General Electric 200 11,600
Imperial Oil Limited 200 7,775
Limited 300 6,675
Lockheed Martin 200 11,900
Loctite 300 14,963
MBNA 400 13,500
May Department Stores 300 11,775
Mellon Bank 200 8,550
Nationwide Health Properties 300 11,175
PMI Group 100 4,088
Philip Morris 200 14,575
Praxair 300 7,463
Procter & Gamble 100 7,188
RJR Nabisco Holdings 400 11,400
Reynolds & Reynolds Class A 300 8,625
Rite Aid 500 11,875
Rockwell International 200 9,125
Sbarro 300 6,900
Service International 800 22,900
Sonat 400 13,150
Sunbeam-Oster 500 9,063
Tribune 100 5,963
Tyco International 300 16,238
Wal-Mart Stores 300 7,500
Wallace Computer Services 200 7,250
-----------
426,979
-----------
Total Common Stock (cost $990,077) 1,056,988
Principal**
Amount
BONDS-35.35%
Australia-6.18%
Australian Government
9.00% 9/15/04 A$100,000 72,523
Bank of Austria 10.875%
11/17/04 60,000 47,074
-----------
119,597
-----------
Canada-6.39%
Government of Canada 8.50% 3/1/00 C$80,000 60,891
Government of Canada 9.00% 12/1/04 50,000 39,153
Rabobank Nederland 9.75% 8/5/04 30,000 23,708
-----------
123,752
-----------
Italy-2.00%
Eurofima 7.70% 2/2/04 Itl80,000 38,794
-----------
38,794
-----------
<PAGE>
Spain-3.22%
Spanish Government 10.50% 10/30/03 Sp 8,000,000 62,267
-----------
62,267
-----------
Sweden-2.34%
Swedish Government 13.00% 6/15/01 Sk300,000 45,343
-----------
45,343
-----------
</TABLE>
<PAGE>
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
Principal** Market
Amount Value
(U.S. $)
<S> <C> <C>
BONDS-(Continued)-
United Kingdom-1.93%
Ontario Province 6.875% 9/15/00 GBP25,000 $ 37,282
----------
37,282
----------
United States-13.29%
AK Steel 10.75% 4/1/04 $ 25,000 26,500
American Standard 10.875% 5/15/99 25,000 26,656
Continental Cablevision 11.00% 6/1/07 25,000 27,688
Ferrellgas LP/Finance 10.00% 8/1/01 15,000 15,788
HealthSouth Rehabilitation 9.50% 4/1/01 25,000 25,688
Louis Dreyfus Natural Gas 9.25% 6/15/04 25,000 26,063
MGM Grand Hotels 12.00% 5/1/02 25,000 27,938
Owens-Illinois 11.00% 12/1/03 25,000 27,781
Rogers Cable Systems 9.625% 8/1/02 25,000 25,375
Viacom International 10.25% 9/15/01 25,000 27,875
----------
257,352
----------
Total Bonds (Cost $656,346) 684,387
----------
REPURCHASE AGREEMENTS-12.97%
With PaineWebber 6.125% 6/1/95
(dated 5/31/95, collateralized by
$240,000 U.S. Treasury Notes 7.75%
due 12/31/99 market value $263,562) $ 251,000 251,000
----------
Total Repurchase Agreements (cost $251,000) 251,000
----------
TOTAL MARKET VALUE OF SECURITIES-102.92%
(cost $1,897,423) 1,992,375
LIABILITIES NET OF RECEIVABLES AND OTHER ASSETS-(2.92%) (56,514)
----------
NET ASSETS APPLICABLE TO 174,244 SHARES
($.01 PAR VALUE) OUTSTANDING-100.00% $ 1,935,861
==========
NET ASSET VALUE - GLOBAL ASSETS FUND A
CLASS ($354,026 / 31,898 shares) $ 11.10
==========
NET ASSET VALUE - GLOBAL ASSETS FUND B
CLASS ($11.09 / 1 share) $ 11.09
==========
NET ASSET VALUE - GLOBAL ASSETS FUND
INSTITUTIONAL CLASS ($1,581,824 / 142,345 shares) $ 11.11
==========
COMPONENTS OF NET ASSETS AT MAY 31, 1995:
Common stock $.01 par value, 500,000,000
shares authorized to the Fund with
50,000,000 shares allocated to the Global
Assets Fund A Class, 50,000,000 shares
allocated to the Global Assets Fund B
Class and 50,000,000 shares allocated to
the Global Assets Fund Institutional Class $ 1,772,552
Accumulated undistributed income:
Net investment income 19,732
Net realized gain on investments and
and foreign currencies 48,454
Net unrealized appreciation on
investments and foreign currencies 95,123
----------
Total net assets $ 1,935,861
==========
</TABLE>
- ------------
* Non-income producing security for the six months ended
May 31, 1995.
** Principal amount is stated in the currency in which each bond is
denominated.
A$ - Australian dollars
C$ - Canadian dollars
Itl - Italian lira
Sp - Spanish pesetas
SK - Swedish kronas
GBP - British pounds
$ - U.S. dollars
See accompanying notes
<PAGE>
Delaware Group Global & International Funds, Inc. - Global Bond Series
Statement of Net Assets
May 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
Principal Market
Amount* Value
(U.S. $)
<S> <C> <C>
BONDS-87.41%
Australia-19.48%
Australian Government 13.00% 2000 A$50,000 $ 42,909
Australian Government 9.00% 2004 50,000 36,261
Cadbury Schweppes, Australia 8.50% 1999 40,000 28,522
South Australian Government Finance 7.25% 2003 50,000 32,008
State Bank of New South Wales 9.00% 2002 70,000 50,606
Treasury Corp. Victoria 10.50% 2003 40,000 30,789
-----------
221,095
-----------
Canada-16.87%
Government of Canada 8.25% 1997 C$80,000 59,553
Deutsche Bank 7.00% 2004 80,000 53,579
KFW International Finance 9.50% 2002 50,000 38,897
Rabobank Nederland 9.75% 2004 50,000 39,513
-----------
191,542
-----------
Italy-6.41%
Eurofima 7.70% 2004 Itl150,000,000 72,738
-----------
72,738
-----------
Spain-10.29%
Spanish Government 10.50% 2003 SP15,000,000 116,751
-----------
116,751
-----------
Sweden-6.66%
Swedish Government 13.00% 2001 SK500,000 75,572
-----------
75,572
-----------
United Kingdom-3.29%
Ontario Province 6.875% 2000 GBP25,000 37,282
-----------
37,282
-----------
United States-24.41%
U.S. Treasury Note 7.875% 2004 $250,000 277,031
-----------
277,031
-----------
Total Bonds (cost $958,321) 992,011
-----------
Repurchase Agreements-9.52%
With PaineWebber 6.125% 6/1/95
(dated 5/31/95, collateralized by
$103,000 U.S. Treasury Notes 7.75%
due 12/31/99, market value $113,405) $108,000 108,000
-----------
Total Repurchase Agreements (cost $108,000) 108,000
-----------
TOTAL MARKET VALUE OF SECURITIES-96.93%
(COST $1,066,321) $ 1,100,011
RECEIVABLES AND OTHER ASSETS NET OF LIABILITIES-3.07% 34,842
-----------
NET ASSETS APPLICABLE TO 107,007 SHARES ($.01 PAR VALUE)
OUTSTANDING-100.00% $ 1,134,853
===========
NET ASSET VALUE - GLOBAL BOND FUND A CLASS
($347,662 / 32,813 shares) $ 10.60
===========
NET ASSET VALUE - GLOBAL BOND FUND B CLASS
($10.60 / 1 share) $ 10.60
===========
NET ASSET VALUE - GLOBAL BOND FUND INSTITUTIONAL
CLASS ($787,180 / 74,193 shares) $ 10.61
===========
</TABLE>
<PAGE>
Statement of Net Assets (Continued)
(Unaudited)
<TABLE>
<CAPTION>
<S> <C>
COMPONENTS OF NET ASSETS AT MAY 31, 1995:
Common stock $.01 par value, 500,000,000
shares authorized to the Fund with
50,000,000 shares allocated to the Global
Bond Fund A Class, 50,000,000 shares
allocated to the Global Bond Fund B Class
and 50,000,000 shares allocated to the
Global Bond Fund Institutional Class $ 1,077,622
Accumulated undistributed income:
Net investment income 6,742
Net realized gain on investments
and foreign currencies 17,875
Net unrealized appreciation on
investments and foreign currencies 32,614
------------
Total net assets $ 1,134,853
============
</TABLE>
- -------------
** Principal amount is stated in the currency of the country in which
each security is denominated.
A$ - Australian dollars
C$ - Canadian dollars
Itl - Italian lira
Sp - Spanish pesetas
Sk - Swedish kronas
GBP - British pounds
$ - U.S. dollars
<PAGE>
Delaware Group Global & International Funds, Inc. -
Statement of Assets and Liabilities
May 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
International Global Global
Equity Assets Bond
Series Series Series
------------- ----------- -----------
ASSETS:
<S> <C> <C> <C>
Investments at market $68,584,960 $1,992,375 $1,100,011
Cash and foreign currencies 917,153 2,593 3,023
Dividends and interest receivable 359,469 31,930 37,195
Subscriptions receivable 353,658 9,898 ---
Receivable for securities sold 19,081 --- ---
Other assets 234,089 121,921 121,669
----------- ---------- ----------
Total assets 70,468,410 2,158,717 1,261,898
----------- ---------- ----------
LIABILITIES:
Liquidations payable 233,920 --- ---
Payable for securities purchased --- 94,616 ---
Other accounts payable and
accrued expenses 18,407 128,240 127,045
----------- ---------- ----------
Total liabilities 252,327 222,856 127,045
----------- ---------- ----------
TOTAL NET ASSETS $70,216,083 $1,935,861 $1,134,853
=========== ========== ==========
</TABLE>
See accompanying notes
<PAGE>
Delaware Group Global & International Funds, Inc.-
Statement of Operations
For the Six Months Ended May 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
International Global Global
Equity Assets Bond
Series Series Series
------------- ---------- ---------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 195,423 $ 27,240 $ 33,497
Dividends 1,251,792 11,184 ---
---------- --------- ---------
1,447,215 38,424 33,497
---------- --------- ---------
EXPENSES:
Management fees 233,103 3,001 1,042
Dividend disbursing and
transfer agent fees and expenses 201,465 1,161 588
Distribution expense 85,088 261 226
Registration fees 30,000 14,846 14,724
Custodian fees 26,140 8,655 4,855
Reports and statements to
shareholders 23,358 4,772 4,752
Professional fees 17,903 7,022 7,022
Salaries 7,619 155 94
Taxes (other than taxes on income) 5,265 68 40
Directors' fees 3,060 2,000 2,000
Amortization of organization
expenses 1,754 28,821 28,838
Other 10,757 1,787 1,885
---------- --------- ---------
645,512 72,549 66,066
Less expenses absorbed by Delaware
International Advisers Ltd. -0- 66,046 62,056
---------- --------- ---------
645,512 6,503 4,010
---------- --------- ---------
NET INVESTMENT INCOME
BEFORE FOREIGN TAX WITHHELD 801,703 31,921 29,487
FOREIGN TAX WITHHELD (135,819) (778) ---
---------- --------- ---------
NET INVESTMENT INCOME 665,884 31,143 29,487
---------- --------- ---------
NET REALIZED GAIN AND
UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN
CURRENCIES:
Net realized gain (loss) on:
Investment transactions 890,867 46,034 17,600
Foreign currencies (1,581,703) 2,420 275
---------- --------- --------
Net realized gain (loss) (690,836) 48,454 17,875
Net unrealized appreciation of
investment and foreign currencies 3,135,819 95,123 32,614
---------- --------- --------
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS AND
FOREIGN CURRENCIES 2,444,983 143,577 50,489
---------- --------- --------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $3,110,867 $ 174,720 $ 79,976
========== ========= =========
</TABLE>
See accompanying notes
<PAGE>
Delaware Group Global & International Fund, Inc. -
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
12/27/94*
Six Months to Year Ended
Ended 5/31/95 5/31/95 11/30/94
------------- ------------------------------------ --------------
(Unaudited) (Unaudited)
International Global Global International
Equity Series Assets Series Bond Series Equity Series
------------- -------------- --------------- --------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 665,884 $ 31,143 $ 29,487 $ 1,076,443
Net realized gain (loss) on investments
and foreign currencies (690,836) 48,454 17,875 2,129,633
Net unrealized appreciation (depreciation) of
investments and foreign currencies 3,135,819 95,123 32,614 (429,323)
------------ ------------ --------- -----------
Net increase in net assets resulting
from operations 3,110,867 174,720 79,976 2,776,753
------------ ------------ --------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
A Class (572,164) (1,405) (4,838) (790,811)
B Class (7,371) --- --- (491)
Institutional Class (107,162) (10,006) (17,908) (103,280)
Net realized gain from security
transactions:
A Class (2,121,203) --- --- (424,858)
B Class (29,909) --- --- ---
Institutional Class (303,387) --- --- (50,865)
------------ ------------ --------- -----------
(3,141,196) (11,411) (22,746) (1,370,305)
------------ ------------ --------- -----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold:
A Class 19,407,631 351,803 296,612 53,822,589
B Class 947,832 10 10 682,252
Institutional Class 3,412,547 1,507,634 772,876 5,208,314
Net asset value of shares issued upon
reinvestment of dividends from net
investment income and net realized
gain from security transactions:
A Class 2,560,221 1,405 4,749 1,092,988
B Class 35,357 --- --- 463
Institutional Class 365,851 10,006 17,908 146,299
------------ ------------ --------- -----------
26,729,439 1,870,858 1,092,155 60,952,905
------------ ------------ --------- -----------
Cost of shares repurchased:
A Class (17,064,043) (55,778) (165) (34,129,609)
B Class (60,234) ---- --- (35,989)
Institutional Class (1,331,474) (77,528) (49,367) (1,852,746)
------------ ------------ --------- -----------
(18,455,751) (133,306) (49,532)
Increase in net assets derived from
capital share transactions 8,273,688 1,737,552 1,042,623 24,934,561
------------ ------------ --------- -----------
NET INCREASE IN NET ASSETS 8,243,359 1,900,861 1,099,853 26,341,009
NET ASSETS:
Beginning of period 61,972,724 35,000 35,000 35,631,715
------------ ------------ --------- -----------
End of period $ 70,216,083 $ 1,935,861 $ 1,134,853 $ 61,972,724
============ ============ ========= ===========
Undistributed net investment income $ 302,869 $ 19,732 $ 6,742 $ 323,682
============ ============ ========= ===========
</TABLE>
- ------------
* Date of initial public offering
See accompanying notes
<PAGE>
Delaware Group Global & International Funds, Inc.
Notes to Financial Statements
May 31, 1995
(Unaudited)
Delaware Group Global & International Funds, Inc. (the "Fund") is
registered as a diversified open-end investment company under the Investment
Company Act of 1940. The Fund is organized as a Maryland corporation and offers
three series (the "Series"). Each Series offers three classes of shares.
1. Significant Accounting Policies
The following accounting policies are in accordance with general
accounting principles and are consistently followed by the Fund for financial
statement preparation:
Security Valuation-Securities listed on an exchange are valued at the last
quoted sales price as of 4:00 pm on the valuation date. Securities not traded
are valued at the last quoted bid price. Securities not listed on an exchange
are valued at the mean of the last quoted bid and asked prices. Securities
listed on a foreign exchange are valued at the last quoted sale price before the
time when the Fund is valued. Money market instruments having less than 60 days
to maturity are valued at amortized cost. Security transactions are recorded on
the date the securities are purchased or sold (trade date).
Federal Income Taxes-Each Series intends to continue to qualify as a regulated
investment company and make the requisite distributions to shareholders.
Accordingly, no provision for federal income taxes is required in the financial
statements.
Repurchase Agreements-Each Series may invest in a pooled cash account along with
other members of the Delaware Group Family of Funds. The aggregated 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
Series' 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.
Class Accounting-Investment income, common expenses and gain (loss) are
allocated to the various classes of each Series on the basis of daily net assets
of each class. Distribution expenses relating to a specific class are charged
directly to that class.
Foreign Currencies-The value of all assets and liabilities denominated in
foreign currencies are translated into the U.S. dollars at the exchange rate of
such currencies against the U.S. dollar as of 3:00 pm EST. Forward foreign
currency contracts are valued at the mean between the bid and asked prices of
the contracts. Interpolated values are derived when the settlement date of the
contract is an interim date for which quotations are not available.
Other-Expenses common to all Funds within the Delaware Group Family of Funds are
allocated amongst the funds on the basis of average net assets. Costs used in
calculating realized gains and losses on the sale of investment securities are
those of the specific securities sold. Dividend income is recorded on the
ex-divided date and interest income is recorded on an accrual basis. Original
discounts are accreted to interest income over the lives of the respective
securities.
2. Investment Management and Distribution Agreements
In accordance with the terms of the Investment Management Agreement, the
Fund pays Delaware International Advisers Ltd. (DIAL), the investment manager of
each Series, an annual fee which is calculated daily at the rate of 0.75% of the
net assets of the Series less fees paid to the independent directors. DIAL has
entered into a sub-advisory agreement with Delaware Management Company, Inc.
(DMC) with respect to the management of the Global Assets Series' investments in
U.S. securities. DMC will receive from DIAL 25% of the investment management
fees and other expenses for the Global Assets Series. At May 31, 1995, the
International Equity Series had a liability for Investment Management fees and
other expenses payable to DIAL for $14,859.
DIAL has elected voluntarily to waive that portion, if any, of the annual
management fees payable by the Global Assets Series and the Global Bond Series
to the extent necessary to ensure that the annual operating expenses exclusive
of taxes, interest, brokerage commissions and extraordinary expenses do not
exceed 1.25%, 1.95%, and 0.95% for the A Class, B Class, and Institutional
Class, respectively. Total expenses absorbed by DIAL were $66,046 for the Global
Asset Series and $62,056 for the Global Bond Series.
Pursuant to the Distribution Agreement, the Fund pays Delaware
Distributors L.P. (DDLP), the Distributor and an affiliate of DMC, an annual fee
of 0.30% of the average daily net assets of the A Class and 1.00% of the average
daily net assets of the B Class. No distribution expenses are paid by the
Institutional Class. At May 31, 1995, the International Equity Series, the
Global Assets Series and the Global Bond Series had liabilities for distribution
fees and other expenses payable to DDLP for $5,021, $47,133 and $51,666,
respectively. For the six months ended May 31, 1995, the Fund paid DDLP $20,421,
$339 and $204 for commissions earned on sales of A Class shares for the
International Equity Series, the Global Assets Series and the Global Bond
Series, respectively.
<PAGE>
The Fund has engaged Delaware Service Company, Inc. (DSC), an affiliate
of DMC to serve as dividend disbursing and transfer agent for the Fund. For the
six months ended May 31, 1995, the amount expensed for these services were
$201,465, $1,161, and $585 for the International Equity Series, the Global
Assets Series, and the Global Bond Series, respectively. At May 31, 1995, the
International Equity Series, the Global Assets Series and the Global Bond
Series, had liabilities for such fees and other expenses to DSC for $6,429,
$13,638 and $12,805, respectively.
Certain officers of the Investment Manager are officers, directors and/or
employees of the Fund. These officers, directors and employees are paid no
compensation by each Series.
On April 3, 1995, Delaware Management Holdings, Inc., the indirect parent
of DIAL, DMC, DDLP and DSC, through a merger transaction (the "Merger") became a
wholly-owned subsidiary of Lincoln National Corporation. Other than the
resulting change in ownership, the Merger will not materially change the manner
in which DIAL or DMC have heretofore conducted their relationship with each
Series. The same personnel who manage the operations and affairs of each Series
before the Merger have continued to manage their operations and affairs since
the Merger.
<PAGE>
Statement of Net Assets (Continued)
3. Investments
During the six months ended May 31, 1995, the Fund made purchases and
sales of investment securities other than U.S. government securities and
temporary cash investments as follows:
International Global Global
Equity Assets Bond
Series Series Series
------------ ---------- ----------
Purchases $11,632,343 $2,115,032 $1,184,045
Sales $7,531,196 $515,077 $244,194
Investment securities based on cost for federal income tax purposes at
May 31, 1995 are as follows:
International Global Global
Equity Assets Bond
Series Series Series
------------ ---------- ----------
Cost of Investments $64,912,816 $1,897,423 $1,066,321
Aggregated unrealized
appreciation 7,907,195 118,941 36,047
Aggregate unrealized
depreciation (4,235,051) (23,989) (2,357)
----------- ---------- ----------
Market value of
investments $68,584,960 $1,992,375 $1,100,011
=========== ========== ==========
The realized gain for financial reporting and federal income tax purposes
for the six months ended May 31, 1995 were $890,867, $46,034 and $17,600 for the
International Equity Series, the Global Assets Series and the Global Bond
Series, respectively.
4. Capital Stock
Transactions in capital stock shares were as follows:
<TABLE>
<CAPTION>
12/27/94*
Six Months to Year Ended
Ended 5/31/95 5/31/95 11/30/94
------------- ------------------------------- -------------
International Global Global International
Equity Series Assets Series Bond Series Equity Series
------------- ------------- ------------ --------------
<S> <C> <C> <C> <C>
Shares sold:
A Class 1,678,975 33,306 28,871 4,382,022
B Class 81,930 1 1 55,284
Institutional Class 294,761 148,724 77,283 423,561
Shares issued upon
reinvestment of dividends from
net investment income and
net realized gain from
security transactions:
A Class 225,143 132 458 91,804
B Class 3,112 --- --- 38
Institutional Class 32,085 942 1,736 12,259
--------- -------- ------- ---------
2,316,006 183,105 108,349 4,964,968
--------- -------- ------- ---------
Shares repurchased:
A Class (1,481,802) (5,040) (16) (2,779,645)
B Class (5,235) --- --- (2,915)
Institutional Class (114,948) (7,321) (4,826) (150,626)
--------- -------- ------- ---------
(1,601,985) (12,361) (4,842) (2,933,186)
--------- -------- ------- ---------
Net increase 714,021 170,744 103,507 2,031,782
========= ======== ======= =========
</TABLE>
* Date of initial public offering
<PAGE>
5. Foreign Currency Forward Contracts
The following currency forward contracts were outstanding at May 31,
1995:
<TABLE>
<CAPTION>
International Contract to In Exchange Settlement Unrealized
Equity Series Deliver For Date Gain/(Loss)
-------------- --------------------------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
78,100,000 Belgian francs $2,750,000 8/31/95 $ 3,256
871,731 British pounds 1,400,000 8/31/95 18,296
4,235,000 Dutch guilders 2,750,000 8/31/95 62,013
3,789,500 Deutsche marks 2,750,000 8/31/95 9,032
557,600,000 Japanese yen 6,800,000 8/31/95 135,146
--------
Global Bond
Series
-----------
10,823,000 Spanish pesetas $87,960 7/31/95 $(874)
329,130 Swedish kronas 44,564 7/31/95 (257)
---------
$ (1,131)
=========
Global Assets Contract to
Series Purchase
------------- ---------------------------
15,788 British pounds $24,763 6/2/95 $ 317
=========
</TABLE>
<PAGE>
Statement of Net Assets (Continued)
6. Financial Highlights
Selected data for each share of the Series outstanding throughout each
period were as follows:
<TABLE>
<CAPTION>
International
Equity Fund
A Class
-----------------------------------------------------------------
Six Months(5) Year Ended 10/31/91(1)
Ended ----------------------------------- to
5/31/95 11/30/94 11/30/93 11/30/92 11/30/91
----------- --------- -------- --------- ---------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $11.920 $11.250 $9.590 $9.650 $10.000
Income from investment operations:
Net investment income (0.149) 0.140 0.499 0.162 (0.004)
Net realized and unrealized gain
(loss) from security transactions 0.694 0.895 1.636 (0.172) (0.346)
------- ------- ------- ------- -------
Total from investment operations 0.545 1.035 2.135 (0.010) (0.350)
Less distributions:
Dividends from net investment
income (0.125) (0.225) (0.475) (0.050) none
Distribution from net realized
gain on security transactions (0.470) (0.140) none none none
------- ------- ------- ------- -------
Total distributions (0.595) (0.365) (0.475) (0.050) none
Net asset value, end of period $11.870 $11.920 $11.250 $9.590 $9.650
======== ======= ======= ======= =======
Total return(4) 4.80% 9.23% 23.08% (0.15%) (3.50%)
Ratios/supplemental data:
Net assets, end of period
(000 omitted) $58,553 $53,736 $31,673 $4,604 $723
Ratio of expenses to average
net assets 2.08% 1.56% 1.25% 1.25% (3)
Ratio of expenses to average
net assets prior to expense
limitation --- 1.82% 2.16% 5.67% (3)
Ratio of net investment income
to average net assets (2.94%) 1.22% 3.91% 2.44% (3)
Ratio of net investment income
to average net assets prior to
expense limitation --- 0.96% 3.00% (2.00%) (3)
Portfolio turnover rate 25% 27% 24% 12% (3)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
International International
Equity Fund Equity Fund
B Class Institutional Class
------------------------- -------------------------------------------------
Six Months(5) 9/6/94(1) Six Months(5) Year Ended 11/9/92(2)
Ended to Ended --------------------- to
5/31/95 11/30/94 5/31/95 11/30/94 11/30/93 11/30/92
---------- --------- ---------- ---------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $11.900 $12.860 $11.970 $11.290 $9.590 $9.520
Income from investment operations:
Net investment income (0.156) 0.036 (0.133) 0.166 0.594 0.021
Net realized and unrealized gain
(loss) from security transactions 0.661 (0.966) 0.703 0.899 1.581 0.049
------ ------- ------- ----- ----- -----
Total from investment operations 0.505 (0.930) 0.570 1.065 2.175 0.070
Less distributions:
Dividends from net investment
income (0.105) (0.030) (0.160) (0.245) (0.475) none
Distribution from net realized
gain on security transactions (0.470) none (0.470) (0.140) none none
------ ------- ------- ----- ----- -----
Total distributions (0.575) (0.030) (0.630) (0.385) (0.475) none
Net asset value, end of period $11.830 $11.900 $11.910 $11.970 $11.290 $9.590
======= ======= ======= ======= ======= ======
Total return(4) 4.45% (7.24%) 5.01% 9.47% 23.52% (0.15%)
Ratios/supplemental data:
Net assets, end of period
(000 omitted) $1,565 $624 $10,098 $7,613 $3,959 $1,120
Ratio of expenses to average
net assets 2.78% 2.26% 1.78% 1.26% 0.95% 0.95%
Ratio of expenses to average
net assets prior to expense
limitation --- 2.52% --- 1.52% 1.86% ---
Ratio of net investment income
to average net assets (3.64%) 0.52% (2.64%) 1.52% 4.21% 2.74%
Ratio of net investment income
to average net assets prior to
expense limitation --- 0.26% --- 1.26% 3.30% ---
Portfolio turnover rate 25% 27% 25% 27% 24% 12%
</TABLE>
- ------------
1 Date of initial public offering; ratios and total return have been annualized
for International Equity Fund A Class. Ratios have been annualized and total
return has not been annualized for International Equity Fund B Class.
2 Date of intital public offering; ratios have been annualized and the total
return reflects the performance of the International Equity Fund A Class for
12/1/91 to 11/8/92 and the International Equity Fund Institutional Class form
11/9/92 to 11/30/92.
3 The ratios of expenses and net investment income to average net assets and
portfolio turnover have been omitted as management believes that such ratios
for this relatively short period are not meaningful.
4 Does not include maximum sales charge of 5.75% nor the 1% limited contingent
deferred sales charge that would apply in the event of certain redemptions
within 12 months of purchase for International Equity Fund A Class and does
not include contingent deferred sales charge which varies for 1%-4% depending
upon the holding period for International Equity Fund B Class.
5 Ratios have been annualized and total return has not been annualized.
<PAGE>
Statement of Net Assets (Continued)
6. Financial Highlights (Continued)
Selected data for each share of the Series outstanding throughout each
period were as follows:
<TABLE>
<CAPTION>
Global Bond Global Bond Global Bond
Fund Fund Fund
A Class B Class Institutional Class
----------- ----------- -------------------
12/27/94(1) 12/27/94(1) 12/27/94(1)
to to to
5/31/95 5/31/95 5/31/95
----------- ----------- ----------
<S> <C> <C> <C>
Net asset value, beginning of period $10.000 $10.000 $10.000
Income from investment operations:
Net investment income 0.255 0.250 0.328
Net realized and unrealized gain (loss)
from security transactions 0.585 0.566 0.522
------ ------ ------
Total from investment operations 0.840 0.816 0.850
Less distributions:
Dividends from net investment income (0.240) (0.216) (0.240)
Distribution from net realized gain on
security transactions none none none
------ ------ ------
Total distributions (0.240) (0.216) (0.240)
Net asset value, end of period $10.600 $10.600 $10.610
======= ======= =======
Total return(2) 8.49% 8.24% 8.59%
Ratios/supplemental data:
Net assets, end of period (000 omitted) $348 $-0-(3) $787
Ratio of expenses to average net assets 1.25% 1.95% 0.95%
Ratio of expenses to average net assets
prior to expense limitation 16.55% 17.25% 16.25%
Ratio of net investment income to average
net assets 7.07% 6.37% 7.37%
Ratio of net investment income to average
net assets prior to expense limitation (8.23%) (8.93%) (7.93%)
Portfolio turnover rate 70% 70% 70%
</TABLE>
1 Date of initial public offering; ratios have been annualized and total return
has not been annualized.
2 Does not include maximum sales charge of 4.75% nor the 1% limited contingent
deferred sales charge that would apply in the event of certain redemptions
within 12 months of purchase for Global Bond Fund A Class and does not
include contingent deferred sales charge which varies from 1%-4% depending
upon the holding period for Global Bond Fund B Class.
3. Only one share of the Global Bond Fund B Class is outstanding, the net
asset value of which is $10.60.
<PAGE>
Statement of Net Assets (Continued)
6. Financial Highlights (Continued)
Selected data for each share of the Series outstanding throughout each
period were as follows:
<TABLE>
<CAPTION>
Global Assets Global Assets Global Assets
Fund Fund Fund
A Class B Class Institutional Class
------------ ------------- -------------------
12/27/94(1) 12/27/94(1) 12/27/94(1)
to to to
5/31/95 5/31/95 5/31/95
---------- ----------- -----------
<S> <C> <C> <C>
Net asset value, beginning of period $10.000 $10.000 $10.000
Income from investment operations:
Net investment income 0.170 0.170 0.216
Net realized and unrealized gain
from security transactions 1.010 0.980 0.974
-------- ------- -------
Total from investment operations 1.180 1.150 1.190
Less distributions:
Dividends from net investment income (0.080) (0.060) (0.080)
Distribution from net realized gain on
security transactions none none none
-------- ------- -------
Total distributions (0.080) (0.060) (0.080)
Net asset value, end of period $11.100 $11.090 $11.110
======== ======= =======
Total return(2) 11.84% 11.53% 11.94%
Ratios/supplemental data:
Net assets, end of period (000 omitted) $354 $-0-(3) $1,582
Ratio of expenses to average net assets 1.25% 1.95% 0.95%
Ratio of expenses to average net assets
prior to expense limitation 11.15% 11.85% 10.85%
Ratio of net investment income to average
net assets 4.75% 4.05% 5.05%
Ratio of net investment income to average
net assets prior to expense limitation (5.15%) (5.85%) (4.85%)
Portfolio turnover rate 85% 85% 85%
</TABLE>
1 Date of initial public offering; ratios have been annualized and total return
has not been annualized.
2 Does not include maximum sales charge of 5.75% nor the 1% limited contingent
deferred sales charge that would apply in the event of certain redemptions
within 12 months of purchase for Global Assets Fund A Class and does not
include contingent deferred sales charge which varies from 1%-4% depending
upon the holding period for Global Assets Fund B Class.
3. Only one share of the Global Assets Fund B Class is outstanding, the net
asset value of which is $11.09.
