DELAWARE GROUP GLOBAL & INTERNATIONAL FUNDS INC, N-30D, 1995-08-04

DELAWARE GROUP GLOBAL & INTERNATIONAL FUNDS INC
N-30D, 1995-08-04

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PHOTO OF
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July 11, 1995

Dear Shareholder,

During the Global and International Funds' fiscal first half, which ended
May 31, 1995, global investments were affected primarily by declines in both
U.S. bond yields and the U.S. dollar, as well as the pause in worldwide
economic growth. In general, global bond markets performed in line with the
U.S. bond market as it recovered from 1994's sharp rise in interest rates.
International equity markets, on the other hand, were somewhat "bumpy" in the
wake of sharp declines in emerging markets such as Mexico and those of Latin
America. Few of the established international markets kept pace with soaring
U.S. stock prices.
Although many Americans hesitate to invest abroad, Delaware Group
believes that the trend toward a global approach to individual investing will
continue. Historical studies of investment returns show that there has been
little direct connection between the performance of U.S. markets and those
overseas. An investment program that combines both domestic and foreign
securities may experience less volatility than either type of investment alone.
For U.S. investors, this is the key benefit of diversifying their portfolio
into foreign investments.
To give people more choices to meet their global investing needs, on
December 27, 1994, we introduced two new portfolios to the Global and
International Funds. The GLOBAL ASSETS FUND invests in four primary asset
classes -- international stocks, investment-grade global bonds, U.S. dividend
growth stocks and U.S. high-yield corporate bonds. The GLOBAL BOND FUND
invests in high quality government and corporate bonds, both foreign and U.S.
These two funds join the INTERNATIONAL EQUITY FUND which will mark its fourth
anniversary on October 31st. International Equity Fund focuses on
dividend-paying stocks in established foreign markets.
<TABLE>
<CAPTION>

TOTAL RETURN FOR TOTAL RETURN FOR
FISCAL PERIOD LIFETIME PERIOD
December 1, 1994, December 27, 1994,
through May 31, 1995 through May 31, 1995
-------------------- --------------------
A Class A Class
<S> <C> <C>
- -----------------------------------------------------------------------------------------------
International Equity Fund A Class +4.80%
- -----------------------------------------------------------------------------------------------
Lipper International Fund Average (231 Funds) +1.17%
===============================================================================================
Global Assets Fund A Class +11.84%
- -----------------------------------------------------------------------------------------------
Lipper Global Flexible Portfolio Average (57 Funds) +7.11%
===============================================================================================
Global Bond Fund A Class +8.49%
- -----------------------------------------------------------------------------------------------
Lipper General World Income Fund Average (154 Funds) +10.03%
- -----------------------------------------------------------------------------------------------

</TABLE>

Returns for the Fund and the Lipper Averages are calculated without the
impact of any sales charge. Additional performance information for all
classes of these Funds can be found on page 7.

The table above presents the total return (capital change plus income)
of the A Classes of each Fund for our first fiscal half or the slightly
briefer "lifetime" period for our new Funds. Results are compared to the
average return for the Lipper Analytical Services mutual fund category in
which the Funds are classified.
The remainder of this report includes reviews from our portfolio
management team. We encourage you to read about all of the Funds to gain a
better understanding of Delaware's global management capabilities and the
broader array of options now available to you. As always, we thank you for
your confidence in the Delaware Group.

Sincerely,

/s/ Wayne A. Stork /s/ Brian F. Wruble
- --------------------------------- -------------------------------------
Wayne A. Stork Brian F. Wruble
Chairman, Board of Directors President and Chief Executive Officer
Delaware Group Delaware Group
Global and International Funds Global and International Funds

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PORTFOLIO MANAGERS' REVIEWS

MANAGING THE EFFECTS OF VOLATILITY IN THE INTERNATIONAL MARKETS
At the beginning of our fiscal period, many emerging world markets,
particularly those in Mexico and Latin America, experienced sharp declines as
the Mexican government devalued the peso. Though volatility is not unusual in
the emerging markets, many investors were surprised by the swift and sharp
corrections. We had no holdings in emerging markets at that time, but
subsequently added small equity holdings in Indonesia and the Philippines as
declines made those markets very attractive. All three of our Funds are designed
to be part of an investor's core international holdings and for that reason, our
primary investment focus is on the less volatile, more established markets.

JAPAN'S STOCK MARKET REMAINS OVERVALUED
As part of our core approach and commitment to managing risk,
Delaware's security selection method in these funds strives to identify
undervalued securities by evaluating their future income potential after
inflation. Based on this method, we believe the Japanese market remains
overvalued, with future growth prospects not compensating for the very low
yield. Consequently, our portfolios are underweighted in Japan relative to
the major foreign market indexes. However, in our opinion, the Japanese market
is an inefficient one, which means that individual companies within the market
can offer good value even when the market as a whole does not. Consistent with
our view that the yen is currently overvalued against the dollar, we are
finding good value in export-related Japanese companies which would benefit
if the yen declines and in smaller and mid-sized companies which, we believe,
are more likely to be "mispriced" in an inefficient market. We continue
to avoid Japanese bonds.

PERFORMANCE OF INTERNATIONAL EQUITY MARKETS
DECEMBER 1, 1994 - MAY 31, 1995

- --------------------------------------------------------------
IN LOCAL IN U.S. CURRENCY
CURRENCY DOLLARS EFFECT
- --------------------------------------------------------------
New Zealand +7.27 +13.52 +5.83
Japan -16.69 -2.61 +16.90
Italy +4.65 +3.28 +1.31
Australia +9.16 +2.24 -6.34
Netherlands +5.74 +17.49 +11.11
Belgium +5.27 +17.19 +11.32
Germany +1.87 +13.21 +11.13
France +2.28 +10.82 +8.35
United Kingdom +9.03 +10.66 +1.50
Malaysia +3.58 +7.40 +3.69
Canada +11.92 +12.44 +0.46
Hong Kong +11.27 +11.25 -0.02

Source: Morgan Stanley

This table is not intended to represent the performance of any Delaware Group
Fund. Past performance is not a guarantee of future results.

WEAK DOLLAR CREATES POSITIVE CURRENCY EFFECT
Currency fluctuations were clearly a positive factor in international
returns for U.S. investors. When calculating returns, the investors' gains or
losses are translated back into U.S. dollars and, in most cases, declines in
the U.S. dollar relative to other major currencies added to returns this fiscal
period. However, Delaware's approach to currency management is a defensive one
since we rely on security selection to provide investment gains, not currency.
We strive to neutralize the impact of currency fluctuations through the use of
financial contracts and by limiting the Funds' holdings in countries where we
believe the currency is significantly overvalued. Because of this defensive
strategy, currency fluctuations did not have as much of a positive effect on
our Funds' returns this year as it may have had on funds that take a more
aggressive approach to currency management.

2
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INVESTMENT OUTLOOK IN EUROPE BRIGHTENS
Going forward, we believe there is strong growth potential in Europe.
In our view, the European economic recovery is approximately 1 1/2 to 2 years
behind the U.S. recovery. Though the weakness of the U.S. dollar has inflated
European returns for U.S. investors, in local terms -- i.e. before adjusting
for currency exchange -- European stock returns have been far behind the
performance of the U.S. equity market. If the European economies continue to
grow, we could see positive earnings surprises, just as we've already seen
from U.S. companies. Though there is no guarantee that this will be the case,
earnings growth could act as a catalyst for the European stock markets in the
year to come. And, excess production capacity in Europe may indicate that
inflation is unlikely to cause near-term difficulties, a positive for both
stocks and bonds.

INTERNATIONAL EQUITY FUND

The bulk of the International Equity Fund portfolio (57% of net
assets) is invested in the major European markets, with a large percentage
allocated to the United Kingdom and smaller, but still significant percentages
in Germany, Belgium and France. This positioning, the result of our disciplined
selection methodology, could benefit the Fund in the coming year, if the
European growth scenario described above materializes.

- ------------------------------------------------------------------------------
TOTAL RETURN (CAPITAL + INCOME)
DECEMBER 1, 1994 - MAY 31, 1995
- ------------------------------------------------------------------------------
A Class B Class
- ------------------------------------------------------------------------------
International Equity Fund 4.80% 4.45%
- ------------------------------------------------------------------------------
MSCI Europe, Australia and Far East Index (EAFE) 5.25%
- ------------------------------------------------------------------------------
Returns include reinvestment of distribution, but not the impact of any sales
charges. The EAFE is an unmanaged index. Additional performance for
International Equity Fund can be found on page 7.

We have established very small positions (about 1% of net assets) in
the emerging Philippine and Indonesian markets as, in our judgement, they
offer exceptional value following declines at the beginning of the year. We
anticipate that these positions will remain small as our focus is clearly on
established markets. To allocate assets to these countries, we reduced our
weighting in Canadian equities. We believe recent strong performance has
increased Canadian stock valuations relative to other countries, making
potential returns less attractive.
Although the strong performance of the world bond markets has
generally supported the world equity markets, in most cases, the
higher-yielding international stocks that comprise the International Equity
portfolio are still playing catch-up after the difficult high interest rate
environment of 1994. We are optimistic that these stocks will step up in
performance if U.S. interest rates remain stable and worldwide economic
growth continues.

- ---------------------------------------------------------------------------
GOING FORWARD, WE BELIEVE THERE IS STRONG GROWTH POTENTIAL IN EUROPE...
IF THE EUROPEAN ECONOMIES CONTINUE TO GROW, WE COULD SEE POSITIVE EARNINGS
SURPRISES, JUST AS WE'VE ALREADY SEEN FROM U.S. COMPANIES.

3
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PHOTO OF
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GLOBAL BOND FUND

This year has been somewhat surprising for investors in foreign bonds
because the best performing markets were those that looked the riskiest at the
turn of the year. Returns from most world bond markets, which hovered around
10% in local terms during the first half, were significantly affected by
currency changes. The dollar weakened against the Japanese yen and the German
mark, while the Italian lira and the Australian dollar both fell relative to
the dollar.
This currency turmoil appeared to be driven by emotion rather than
fundamental value determinations. As we noted earlier, our approach to
currency management is based on careful analysis of relative valuation levels.
In the Global Bond Fund, we strive to limit holdings in those countries whose
currency appears significantly overvalued and therefore, higher risk. As a
result, we had no exposure to bonds denominated in yen or in marks, markets
that performed very well in this period. Our conservative approach was the
primary reason why we underperformed the Salomon Brothers World Government
Bond Index cited in the chart. The Index is heavily weighted toward the
Japanese bond market. Our strategy currently favors dollar-based currencies
because they appear significantly UNDERVALUED. We believe that going forward
higher-yielding markets like Italy, Canada and Sweden, countries which have
made strides with their fiscal problems and now appear undervalued, will offer
greater opportunities than the markets that have led so far this year.
As with our international stock selection methodology, Delaware
relies on income potential as a key measure of value when selecting global
bonds. During this period, our income focus provided total dividends of $0.24
per A class share. With the Global Bond Fund, we place great importance on
quality and select only those bonds rated "A" or better. Generally, the bonds
will have an average maturity in the five to 10-year range. At the end of the
fiscal half, average maturity was a little longer than usual due to the high
prospective "real" yields (yields after inflation) in our favored markets and
because we expect a declining interest rate environment.

Returns assume reinvestment of all distributions, but not the impact of sales
charges. The Salomon Brothers Index is an unmanaged index. For additional Fund
performance see page 7.

GLOBAL ASSETS FUND

In building the Global Assets Fund strategy, Delaware sought to take
advantage of the opportunities to increase return potential and reduce risk
that can result from combinations of asset classes with low "correlation" --
that is, asset classes that tend to move counter to one another over different
performance cycles. In this case, we have combined:

- INTERNATIONAL EQUITIES which are managed in the same style as
the International Equity Fund
33% of net assets*

- U.S. EQUITIES that are specifically selected for their dividend
growth potential
22% of net assets
4
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- GLOBAL BONDS, including U.S. Government bonds and high quality
foreign government and corporate bonds, which are managed in the
same style as the Global Bond Fund
22% of net assets

- HIGH-YIELD U.S. CORPORATE BONDS, higher risk bonds that are
attractive for their high income and their low correlation with
the other asset classes in this Fund
13% of net assets

*Based on net assets as of May 31, 1995. The remainder of portfolio
assets is invested in short-term repurchase agreements.

We believe that with these four asset classes, the Global Assets Fund
has sufficient flexibility to pursue the most attractive securities in the
most attractive markets. And, because we use an income-oriented approach to
evaluate stocks and bonds across all markets, we are able to compare stocks
to bonds within a country and across countries with a consistent yardstick.
By studying the future inflation-adjusted income potential of the four asset
classes, we determine which class appears to offer the most attractive
reward/risk profile. Our emphasis might shift from one asset class to another
based upon this analysis; however, our objective is to keep the Fund broadly
diversified across all four asset classes.
During this fiscal half, U.S. equities outperformed the other three
asset classes. Within the U.S. equity portfolio, our focus is on medium-sized
companies with strong dividend growth potential. Though our holdings of U.S.
stocks were a key factor in our strong performance, we now believe that
international stocks and bonds offer greater future return potential.
Consequently, as of May 31, 1995, we have begun reducing our U.S. stock
holdings and increasing our holdings of international stocks and global bonds.

- ------------------------------------------------------------------------------
TOTAL RETURN (CAPITAL + INCOME)
DECEMBER 27, 1994 - MAY 31, 1995
- ------------------------------------------------------------------------------
Class A Class B
- ------------------------------------------------------------------------------
Global Assets Fund 11.84% 11.53%
- ------------------------------------------------------------------------------
MSCI EAFE Index 5.25% --
- ------------------------------------------------------------------------------
S&P 500 Stock Index 17.46% --
- ------------------------------------------------------------------------------
Merrill Lynch High-Yield Master Index 11.91% --
- ------------------------------------------------------------------------------
Salomon Brothers World Income Index 16.16% --
- ------------------------------------------------------------------------------

Returns for Global Assets Fund and the unmanaged indexes include reinvestment
of all distributions. Fund returns are calculated at net asset value and do not
include impact of sales charges. For additional performance please see page 7.

- -----------------------------------------------------------------------
IN BUILDING THE GLOBAL ASSETS FUND STRATEGY, DELAWARE SOUGHT TO TAKE
ADVANTAGE OF THE OPPORTUNITIES TO INCREASE RETURN POTENTIAL AND REDUCE
RISK THAT CAN RESULT FROM COMBINATIONS OF ASSET CLASSES WITH LOW "CORRELATION."
5
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We have taken small positions in the Asian equity markets of Hong Kong
and Malaysia where we believe there is potential for strong performance if U.S.
interest rates remain stable. Our current view that the European markets are
behind the U.S. in terms of economic recovery has carried through to our
positioning of the Global Assets Fund, which has approximately 20% of assets
invested in Europe.
In selecting U.S. high-yield bonds for the Global Assets portfolio,
our strategy has been to focus on the higher quality tiers (bonds rated "BB"
and "B") of the high-yield market. We believe that including high-yielding,
higher risk corporate bonds will, over time, contribute to the Fund's income
potential and help to stabilize return. However, over the past six months,
with lower interest rates and only a slight slowing in the economy, "CCC"
rated bonds which involve substantially more credit risk, have been the best
performing segment of the high-yield market. Consequently, U.S. high-yield
bonds did not have as much of a positive impact on the portfolio as they might
have had. Nonetheless, we believe the economy may continue to slow and that a
portfolio of higher quality securities will better withstand the financial
pressures of an economic slowdown.
Investment grade global bonds, which comprise approximately 22% of
the Global Assets portfolio, are selected for their ability to generate a high
level of income which can help to cushion the portfolio through unfavorable
market conditions. In addition, yields on foreign fixed income securities can
often be more attractive than yields on similar quality U.S. securities. As
with equities, our focus in global bonds is primarily on established markets.
This section of the portfolio contributed positively to the Fund's performance,
however, due to our more risk-averse strategy we did not have any holdings in
some of the top performing markets such as Japan and Germany.
To date, we have been very pleased with the performance of the Global
Assets Fund which has comfortably surpassed the average of other global
flexible funds tracked by Lipper Analytical Services. Though its lifetime
period of just under six months is too short to be taken as an indication of
potential future results, we believe the combination of these four asset
classes will make the Fund a very attractive choice for investors who wish to
expand their portfolio abroad in pursuit of both income and growth
opportunities.

/S/ Clive A. Gillmore /s/ Ian G. Sims
- ----------------------------------- -------------------------------------
CLIVE A. GILLMORE IAN G. SIMS
Delaware International Advisers Ltd. Delaware International Advisers Ltd.
International Equity Fund Global Bond Fund
Global Assets Fund Asset Allocation Global Assets Fund Global Bonds
and International Equities

/s/ George H. Burwell /s/ Paul A. Matlack
- ----------------------------------- -------------------------------------
GEORGE H. BURWELL PAUL A. MATLACK
Delaware Management Company Delaware Management Company
Global Assets Fund U.S. Stocks Global Assets Fund
U.S. High-Yield Corporate Bonds
6
<PAGE>

PERFORMANCE SUMMARY

Returns Through May 31, 1995

INTERNATIONAL EQUITY FUND GLOBAL ASSETS FUND
Aggregate Total Returns
Class A(1) Class A
Average Annual Total Returns Lifetime +11.84%
Lifetime +7.12% (12/27/94 Inception)
(10/31/91 inception) Excluding Sales Charge
3 Years +5.84% +5.41%
1 Year -3.43% Including Sales Charge
Including Sales Charge

Class B Class B
Aggregate Total Returns Lifetime +11.53%
Lifetime -3.11% (12/27/94 Inception)
(9/6/94 Inception) Excluding Sales Charge
Excluding Sales Charge +7.53%
-6.79% Including Sales Charge
Including Sales Charge

GLOBAL BOND FUND
Aggregate Total Returns
Class A
Lifetime +8.49%
(12/27/94 Inception)
Excluding Sales Charge
+3.33%
Including Sales Charge

Class B
Aggregate Total Returns
Lifetime +8.24%
(12/27/94 Inception)
Excluding Sales Charge
+4.24%
Including Sales Charge

RETURN AND SHARE VALUE WILL FLUCTUATE SO THAT SHARES WHEN REDEEMED MAY BE
WORTH MORE OR LESS THAN THE ORIGINAL INVESTMENT. PAST PERFORMANCE IS NOT A
GUARANTEE OF FUTURE RESULTS. AN EXPENSE LIMITATION OF .95% EXCLUSIVE OF 12B-1
FEES, IS IN EFFECT FOR GLOBAL ASSETS AND GLOBAL BONDS FUNDS.

(1) CLASS A shares are subject to a 5.75% maximum sales charge for
International Equity Fund and Global Assets Fund and a 4.75% maximum
sales charge for Global Bond Fund. All returns reflect the impact of the
12b-1 fee and the reinvestment of all distributions.

(2) CLASS B performance reflects reinvestment of all distributions. Class B
shares do not have a front-end sales charge, but are subject to a 1% annual
distribution and service fee. They are subject to a deferred sales charge of
up to 4% if redeemed before the end of the sixth year. Performance "excluding
sales charge" assumes the investment was not redeemed.

Performance for the INSTITUTIONAL CLASSES of the three Series of the Delaware
Group Global and International Funds, which are available without sales or
asset-based distribution charges only to certain eligible institutional
accounts are as follows: INTERNATIONAL EQUITY FUND: Lifetime (average annual
total return based on inception of 10/31/91) -- +9.14%; 1-year -- +2.78%;
six-month (unannualized) -- +5.01% (International Equity Fund Institutional
Class was initially made available 11/9/92; performance prior to that is based
on A Class performance adjusted to eliminate sales charge, but not the
asset-based distribution charge.) GLOBAL ASSETS FUND: Lifetime (unannualized,
based on inception of 12/27/94) -- +11.94%. GLOBAL BOND FUND: Lifetime
(unannualized, based on inception of 12/27/94) -- +8.59%. Returns through
June 30, 1995: International Equity Fund: Lifetime (average annual total
return based on inception of 10/31/91) -- +8.67%; 1-year -- +3.18%; six-month
(unannualized) -- +3.77%. Global Assets Fund: Lifetime (unannualized, based on
inception of 12/27/94) -- +13.65%. Global Bond Fund: Lifetime (unannualized,
based on inception of 12/27/94) -- +8.69%.

<PAGE>

Returns through June 30, 1995

INTERNATIONAL EQUITY FUND GLOBAL ASSETS FUND
Aggregate Total Returns

Class A(1) Class A
Average Annual Total Returns Lifetime +13.45%
(12/27/94 Inception)
Lifetime (10/31/91 inception) +6.71% Excluding Sales Charge
3 Years +6.57% +6.93%
1 Year - 3.06% Including Sales Charge
Including Sales Charge

Class B Class B
Aggregate Total Returns
Lifetime - 4.01% Lifetime +13.04%
(9/6/94 Inception) (12/27/94 Inception)
Excluding Sales Charge Excluding Sales Charge
- 7.65% +9.04%
Including Sales Charge Including Sales Charge

GLOBAL BOND FUND
Aggregate Total Returns
Class A
Lifetime +8.49%
(12/27/94 Inception)
Excluding Sales Charge
+3.33%
Including Sales Charge

Class B
Aggregate Total Returns
Lifetime +8.28%
(12/27/94 Inception)
Excluding Sales Charge
+4.28%
Including Sales Charge
7
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FINANCIAL STATEMENTS

DELAWARE GROUP GLOBAL & INTERNATIONAL FUNDS, INC. --
INTERNATIONAL EQUITY SERIES*
STATEMENT OF NET ASSETS
May 31, 1995
(Unaudited)
MARKET
NUMBER VALUE
OF SHARES (U.S. $)

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 Co............................. 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
-----------

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
-----------

<PAGE>
MARKET
NUMBER VALUE
OF SHARES (U.S. $)

COMMON STOCK (CONTINUED)
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%
Carter 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
-----------
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
-----------

* Known and does business as International Equity Fund.
8
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Statement of Net Assets (Continued)
International Equity Series
MARKET
PRINCIPAL VALUE
AMOUNT** (U.S. $)

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
======

<PAGE>

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
===========

- ------------
*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
9

<PAGE>

DELAWARE GROUP GLOBAL & INTERNATIONAL FUNDS, INC. --
GLOBAL ASSETS SERIES
STATEMENT OF NET ASSETS
May 31, 1995
(Unaudited)
MARKET
NUMBER VALUE
OF SHARES (U.S. $)

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>
MARKET
NUMBER VALUE
OF SHARES (U.S. $)

COMMON STOCK (CONTINUED)
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
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

10
<PAGE>

Statement of Net Assets (Continued)
Global Assets Series
MARKET
NUMBER VALUE
OF SHARES (U.S. $)

COMMON STOCK (CONTINUED)
UNITED STATES (CONTINUED)
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
-----------

<PAGE>

MARKET
PRINCIPAL** VALUE
AMOUNT (U.S. $)

BONDS (CONTINUED)
ITALY - 2.00%
Eurofima 7.70% 2/2/04...................... Itl 80,000 $ 38,794
-----------
38,794
-----------
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
-----------
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
-----------

11
<PAGE>

Statement of Net Assets (Continued)
Global Assets Series

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
======

<PAGE>

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
foreign currencies.......................... 48,454
Net unrealized appreciation on
investments and foreign currencies.......... 95,123
-----------
Total net assets............................. $1,935,861
===========

- ---------
*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 Sk - Swedish kronas
C$ - Canadian dollars GBP - British pounds
Itl - Italian lira $ - U.S. dollars
Sp - Spanish pesetas

See accompanying notes
12
<PAGE>

DELAWARE GROUP GLOBAL & INTERNATIONAL FUNDS, INC. --
GLOBAL BOND SERIES
STATEMENT OF NET ASSETS
May 31, 1995
(Unaudited)

MARKET
PRINCIPAL VALUE
AMOUNT* (U.S. $)

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
-----------

<PAGE>

MARKET
VALUE
(U.S. $)

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
======

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............................ $1,134,853
===========
- -----------
** Principal amount is stated in the currency of the country in which each
security is denominated.
A$ - Australian dollars
C$ - Canadian dollars
Itl - Italian lira
Sp - Spanish pesetas
Sk - Swedish kronas
GBP - British pounds
$ - U.S. dollars
13

<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
----------- ---------- ----------
<S> <C> <C> <C>
ASSETS:
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
14
<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>
15
See accompanying notes

<PAGE>

DELAWARE GROUP GLOBAL & INTERNATIONAL FUNDS, 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) (36,018,344)
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
16
<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.

<PAGE>

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.

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.

17
<PAGE>

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

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.

An annual meeting of shareholders was held on March 29, 1995. The matters
submitted to a vote of shareholders were the election of directors, the
approval of a new investment management agreement and a new sub-advisory
agreement, and the ratification of the selection of Ernst & Young LLP as
independent auditors of the Fund. The new investment management agreement and
sub-advisory agreement were submitted for shareholder approval in connection
with the merger noted above because the Investment Company Act of 1940
requires shareholders to vote on new investment management and sub-advisory
agreements whenever there is a change in control of an investment manager.

The names of each director elected at the meeting along with the final vote
tabulation with respect to each nominee and each matter were as follows:

NUMBER OF VOTES
-------------------------------------------
FOR AGAINST/WITHHELD ABSTENTIONS
--------- ---------------- -----------
Election of Directors*:
Wayne A. Stork 3,317,543 74,157 --
Walter P. Babich 3,317,543 74,157 --
Anthony D. Knerr 3,317,543 74,157 --
Ann R. Leven 3,317,543 74,157 --
W.Thacher Longstreth 3,316,106 75,594 --
Charles E. Peck 3,317,543 74,157 --

Approval of the New Investment
Management Agreement:
International Equity Series 3,035,920 67,293 113,528
Global Assets Series 131,803 -- --
Global Bond Series 80,174 -- --
Approval of the New
Sub-Advisory Agreement+ 131,803 -- --
Selection of Ernst & Young LLP as
Independent Auditors* 3,102,805 23,155 265,740

* Voted upon by all shareholders of the Fund.
+ Voted upon only by shareholders of the Global Assets Series.
<PAGE>

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.

18
<PAGE>

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

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

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
-----------
$ 227,743
===========
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>

NOTES TO FINANCIAL STATEMENTS (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.......................... 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 1/9/92(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.......................... 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 for
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
from 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.

20
<PAGE>

NOTES TO FINANCIAL STATEMENTS (CONCLUDED)

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 GLOBAL BOND GLOBAL BOND GLOBAL BOND
FUND FUND FUND FUND FUND FUND
A CLASS B CLASS INSTITUTIONAL CLASS A CLASS B CLASS INSTITUTIONAL CLASS
----------- ------------ ------------------- ----------- ----------- -------------------
12/27/94(1) 12/27/94(1) 12/27/94(1) 12/27/94(1) 12/27/94(1) 12/27/94(1)
TO TO TO TO TO TO
5/31/95 5/31/95 5/31/95 5/31/95 5/31/95 5/31/95
---------- ---------- ---------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period ........................... $10.000 $10.000 $10.000 $10.000 $10.000 $10.000

Income from investment operations:
Net investment income............. 0.170 0.170 0.216 0.255 0.250 0.328
Net realized and unrealized
gain from security transactions.. 1.010 0.980 0.974 0.585 0.566 0.522
------- ------- ------- ------- ------- -------
Total from investment operations . 1.180 1.150 1.190 0.840 0.816 0.850

Less distributions:
Dividends from net investment
income .......................... (0.080) (0.060) (0.080) (0.240) (0.216) (0.240)
Distribution from net realized
gain on security transactions.... none none none none none none
------- ------- ------- ------- ------- -------
Total distributions............... (0.080) (0.060) (0.080) (0.240) (0.216) (0.240)
Net asset value, end of period .... $11.100 $11.090 $11.110 $10.600 $10.600 $10.610
======= ======= ======= ======= ======= =======
Total return....................... 11.84%(2) 11.53%(2) 11.94%(2) 8.49%(3) 8.24%(3) 8.59%(3)

Ratios/supplemental data:
Net assets, end of period
(000 omitted) ................... $354 $0 $1,582 $348 -- $787
Ratio of expenses to average
net assets ...................... 1.25% 1.95% 0.95% 1.25% 1.95% 0.95%
Ratio of expenses to average
net assets prior to expense
limitation ...................... 11.15% 11.85% 10.85% 16.55% 17.25% 16.25%
Ratio of net investment income
to average net assets............ 4.75% 4.05% 5.05% 7.07% 6.37% 7.37%
Ratio of net investment income
to average net assets prior
to expense limitation............ (5.15%) (5.85%) (4.85%) (8.23%) (8.93%) (7.93%)
Portfolio turnover................ 85% 85% 85% 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 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) 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.

21
<PAGE>

DELAWARE GROUP OF FUNDS

FOR GROWTH OF CAPITAL FOR TAX-FREE
Trend Fund CURRENT INCOME
DelCap Fund Tax-Free USA Fund
Value Fund Tax-Free Insured Fund
Tax-Free USA
FOR TOTAL RETURN Intermediate Fund
Dividend Growth Fund Tax-Free Pennsylvania Fund
Decatur Total Return Fund
Decatur Income Fund MONEY MARKET FUNDS
Delaware Fund Delaware Cash Reserve
U.S. Government Money Fund
FOR GLOBAL Tax-Free Money Fund
DIVERSIFICATION
International Equity Fund CLOSED-END EQUITY/INCOME
Global Assets Fund Dividend and Income Fund
Global Bond Fund Global Dividend and
Income Fund
FOR CURRENT INCOME
Delchester Fund
U.S. Government Fund
Treasury Reserves
Intermediate Fund

This semi-annual report is for the information of Global and International
Equity Fund shareholders, but it may be used with prospective investors when
preceded or accompanied by a current PROSPECTUS, which gives details about
charges, expenses, investment objectives and operating policies of the Fund.
Summary investment results are documented in the current STATEMENT OF
ADDITIONAL INFORMATION. If used with prospective investors after September
30, 1995, this report must also be accompanied by an International Equity
Fund Performance Update for the most recently completed calendar quarter. The
figures in this report represent past results, which are not a guarantee of
future results. The return and principal value of an investment in the Fund
will fluctuate so that shares, when redeemed, may be worth more or less than
their original cost.

<PAGE>

The Delaware Group includes funds with a wide range of investment
objectives. Stock funds, income funds, tax-free funds, money market funds,
closed-end equity/income funds and global funds give investors the ability to
create a portfolio that fits their personal financial goals. For more
information, including a prospectus of any Delaware Group fund, contact your
financial adviser or call Delaware Group at 800-523-4640 or 215-988-1333 in
Philadelphia. Read the prospectus carefully before investing.

BE SURE TO CONSULT YOUR FINANCIAL ADVISER WHEN MAKING INVESTMENTS. MUTUAL
FUNDS CAN BE A VALUABLE PART OF YOUR FINANCIAL PLAN; HOWEVER, SHARES OF THE FUND
ARE NOT FDIC OR NCUSIF INSURED, ARE NOT GUARANTEED BY ANY BANK OR ANY CREDIT
UNION, ARE NOT OBLIGATIONS OF ANY BANK OR ANY CREDIT UNION, AND INVOLVE
INVESTMENT RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL. SHARES OF THE FUND
ARE NOT BANK OR CREDIT UNION DEPOSITS.

INVESTMENT MANAGER
Delaware Management Company, Inc.

INTERNATIONAL AFFILIATE
Delaware International Advisers Ltd.

NATIONAL DISTRIBUTOR
Delaware Distributors, L.P.

SHAREHOLDER SERVICING,
DIVIDEND DISBURSING
AND TRANSFER AGENT
Delaware Service Company, Inc.

- ------------------------------------------------------------------------
SA-034[5/31]PP795 Printed in the U.S.A.

<PAGE>

DELAWARE GROUP

A TRADITION OF SOUND INVESTING SINCE 1929

PHOTO OF VARIOUS
COLONIAL OBJECTS

|
|
| DELAWARE
1995 | GROUP
| ----------
SEMI- | Global &
| International Funds
ANNUAL |
| International Equity Fund
REPORT | Global Assets Fund
| Global Bond Fund
|
|