DELAWARE GROUP GLOBAL & INTERNATIONAL FUNDS INC, 497, 1997-07-25

DELAWARE GROUP GLOBAL & INTERNATIONAL FUNDS INC
497, 1997-07-25

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(GLOBAL-ITF-ABC)

INTERNATIONAL SMALL CAP FUND PROSPECTUS
GLOBAL BOND FUND JULY 21, 1997
GLOBAL ASSETS FUND
EMERGING MARKETS FUND

A CLASS SHARES
B CLASS SHARES
C CLASS SHARES

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1818 Market Street, Philadelphia, PA 19103

For Prospectus and Performance: Nationwide 800-523-4640

Information on Existing Accounts: (SHAREHOLDERS ONLY)
Nationwide 800-523-1918

Dealer Services: (BROKER/DEALERS ONLY)
Nationwide 800-362-7500

Representatives of Financial Institutions:
Nationwide 800-659-2265

This Prospectus describes shares of the International Small Cap
Series (the "International Small Cap Fund"), the Global Bond Series (the
"Global Bond Fund"), the Global Assets Series (the "Global Assets Fund") and the
Emerging Markets Series (the "Emerging Markets Fund") (individually, a "Fund"
and collectively, the "Funds") of Delaware Group Global & International Funds,
Inc. ("Global Funds, Inc."), a professionally-managed mutual fund of the series
type.

International Small Cap Fund's is to achieve
long-term capital appreciation. This Fund seeks to achieve its objective by
investing primarily in equity securities of small non-U.S. companies, which may
include companies located or operating in established or emerging countries.
Global Bond Fund's investment objective is to achieve current income consistent
with the preservation of principal. This Fund seeks to achieve its objective by
investing primarily in fixed-income securities that may also provide the
potential for capital appreciation. Global Assets Fund's investment objective is
to achieve long-term total return. This Fund seeks to achieve its objective by
investing in securities which, in Delaware International Advisers Ltd.'s
("Delaware International" or the "Manager") opinion, will provide higher current
income than a portfolio comprised exclusively of equity securities, along with
the potential for capital growth. This Fund will invest in both equity and
fixed-income securities. Emerging Markets Fund's investment objective is to
achieve long-term capital appreciation. This Fund seeks to achieve its objective
by investing primarily in equity securities of issuers located or operating in
emerging countries. See Investment Objectives and Strategies.

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(GLOBAL-ITF-ABC)

Each Fund offers three retail classes of shares: "Class A Shares,"
"Class B Shares" and "Class C Shares" (individually, a "Class" and collectively,
the "Classes"). These alternatives permit an investor to choose the method of
purchasing shares that is most suitable for his or her needs.

This Prospectus relates only to the Classes and sets forth information
that you should read and consider before you invest. Please retain it for future
reference. The Funds' Statement of Additional Information ("Part B" of Global
Funds, Inc.'s registration statement), dated July 21, 1997, as it may be amended
from time to time, contains additional information about the Funds and has been
filed with the Securities and Exchange Commission. Part B is incorporated by
reference into this Prospectus and is available, without charge, by writing to
Delaware Distributors, L.P. at the above address or by calling the above
numbers. With the exception of International Small Cap Fund, each Fund's
financial statements appear in the Annual Report of Global Funds, Inc. for the
fiscal year ended November 30, 1996, which will accompany any response to
requests for Part B. International Small Cap Fund was not offered to the
public prior to the date of this Prospectus.

Each Fund also offers an Institutional Class, which is available for
purchase only by certain investors. A prospectus for the Funds' Institutional
Classes can be obtained by writing to Delaware Distributors, L.P. at the above
address or by calling the above numbers.

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(GLOBAL-ITF-ABC)

TABLE OF CONTENTS

Cover Page How to Buy Shares
Synopsis Redemption and Exchange
Summary of Expenses Dividends and Distributions
Financial Highlights Taxes
Investment Objectives and Strategies Calculation of Offering Price and
Suitability Net Asset Value Per Share
Investment Strategy Management of the Funds
Special Risk Considerations Other Investment Policies and
The Delaware Difference Risk Considerations
Plans and Services Appendix A--Investment Illustrations
Retirement Planning Appendix B--Classes Offered
Classes of Shares Appendix C--Ratings

THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.

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 FUNDS 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 THE PRINCIPAL AMOUNT INVESTED. SHARES OF
THE FUNDS ARE NOT BANK OR CREDIT UNION DEPOSITS.

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(GLOBAL-ITF-ABC)

SYNOPSIS

Investment Objectives
International Small Cap Fund--The investment objective of International
Small Cap Fund is to achieve long-term capital appreciation. This Fund seeks to
achieve its objective by investing primarily in equity securities of small non-
U.S. companies, which may include companies located or operating in established
or emerging countries. The Fund is an international fund. Under normal market
conditions, at least 65% of the Fund's total assets will be invested in equity
securities of companies organized or having a majority of their assets in or
deriving a majority of their operating income in at least three different
countries outside of the United States. The current market capitalization of
the companies in which the Fund intends to invest primarily generally will be
$1.5 billion or less (at the time of purchase).

Global Bond Fund--The investment objective of Global Bond Fund is to
achieve current income consistent with preservation of principal. This Fund
seeks to achieve its objective by investing primarily in fixed-income securities
that may also provide the potential for capital appreciation. The Fund is a
global fund. As such, at least 65% of the Fund's total assets will be invested
in fixed-income securities of issuers organized or having a majority of their
assets in or deriving a majority of their operating income in at least three
different countries, one of which may be the United States.

Global Assets Fund--The investment objective of Global Assets Fund is
to achieve long-term total return. This Fund seeks to achieve its objective by
investing in securities which, in the Manager's or Sub-dviser's opinion, will
provide higher current income than a portfolio comprised exclusively of equity
securities, along with the potential for capital growth. The Fund will invest
in both equity and fixed-income securities. The Fund is a global fund. As
such, at least 65% of the Fund's total assets will be invested in securities of
issuers organized or having a majority of their assets in or deriving a majority
of their operating income in at least three different countries, one of which
may be the United States. It is anticipated that a portion of the Fund's assets
may be invested in warrants.

Emerging Markets Fund--The investment objective of Emerging Markets
Fund is to achieve long-term capital appreciation. This Fund seeks to achieve
its objective by investing primarily in equity securities of issuers located or
operating in emerging countries. The Fund is an international fund. As such,
under normal market conditions, at least 65% of the Fund's total assets will be
invested in equity securities of issuers organized or having a majority of their
assets or deriving a majority of their operating income in at least three
different countries which are considered to be emerging or developing.

For further details, see Investment Objectives and Strategies and Other
Investment Policies and Risk Considerations.

Risk Factors and Special Considerations
Prospective investors should consider a number of factors:

1. Investing in securities of non-United States companies which are
generally denominated in foreign currencies and the utilization of forward
foreign currency exchange contracts involve certain risk and opportunity
considerations not typically associated with investing in United States
companies.

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(GLOBAL-ITF-ABC)

See Special Risk Considerations-Foreign Securities Risks and Other Investment
Policies and Risk Considerations.

2. Each Fund has the right to engage in options and futures
transactions for hedging purposes, to counterbalance portfolio volatility. In
connection with futures transactions, the Funds will maintain certain collateral
in special accounts established with futures commission merchants or on their
behalf in the care of The Chase Manhattan Bank (the "Custodian Bank"). While the
Funds do not engage in options and futures for speculative purposes, there are
risks which result from the use of these instruments, and an investor should
carefully review the descriptions of these risks in this Prospectus. See Options
and Futures Contracts and Options on Futures Contracts under Other Investment
Policies and Risk Considerations.

3. The prices of equity securities, especially those of the smaller
non-U.S. companies in which International Small Cap Fund will primarily
invest, tend to fluctuate, particularly in the shorter term. Investors in
International Small Cap Fund should be willing to accept the risks associated
with emerging and growth-oriented companies, some of the securities of which may
be speculative and subject the Fund to additional investment risk. See Special
Risk Considerations and Other Investment Policies and Risk Considerations.

4. Global Bond Fund may invest in interest rate swaps for hedging
purposes which could subject the Fund to increased risks. Interest rate swaps
may be considered to be derivative securities. See Interest Rate Swaps under
Other Investment Policies and Risk Considerations.

5. Emerging Markets Fund may invest up to 35% of its assets, and
International Small Cap Fund may invest up to 15% of its assets, in high
yield, high risk foreign fixed-income securities, including Brady Bonds, and
Global Assets Fund may invest up to 15% of its assets in high yield, high risk
U.S. fixed-income securities ("junk bonds"). Consequently, greater risks may be
involved with an investment in these Funds. See High Yield, High Risk Securities
under Investment Objectives and Strategies.

6. Each Fund may invest a portion of its assets in the markets of
certain emerging countries. The Emerging Markets Fund will invest primarily in
issuers located or operating in markets of such countries. Investments in
securities of companies in emerging markets present a greater degree of risk
than tends to be the case for foreign investments in Western Europe and other
developed markets. Among other things, there is a greater possibility of
expropriation, nationalization, confiscatory taxation, income earned or other
special taxes, foreign exchange restrictions, limitations on the repatriation of
income and capital from investments, defaults in foreign government debt, and
economic, political or social instability. In addition, in many emerging
markets, there is substantially less publicly available information about
issuers and the information that is available tends to be of a lesser quality.
Economic markets and structures tend to be less mature and diverse and the
securities markets which are subject to less government regulation or
supervision may also be smaller, less liquid and subject to greater price
volatility. See Special Risk Considerations-Emerging Markets Securities Risks.

7. While Global Bond Fund, Global Assets Fund and Emerging Markets Fund
each intend to seek to qualify as a "diversified" investment company under

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(GLOBAL-ITF-ABC)

provisions of Subchapter M of the Internal Revenue Code, as amended (the
"Code"), none of these three Funds will be diversified under the Investment
Company Act of 1940, as amended (the "1940 Act"). Thus, 50% of these Funds'
total net assets will be divided among cash, cash items and other securities of
at least ten different issuers, with no more than 5% of a Fund's total net
assets invested with one issuer. However, this will not satisfy the 1940 Act
requirement that 75% of a Fund's assets be limited to not more than 5% per
issuer. A nondiversified portfolio is believed to be subject to greater risk
because adverse effects on any individual portfolio holdings may affect a larger
portion of the overall assets.

Investment Manager, Sub-Adviser, Distributor and Service Agent
Delaware International Advisers Ltd. ("Delaware International" or the
"Manager") is the investment manager for each Fund and, in that capacity,
provides investment advice to each Fund, subject to the supervision of Global
Funds, Inc.'s Board of Directors. Delaware Management Company, Inc. ("Delaware,"
or the "Sub-Adviser") is the investment sub-adviser for Global Assets Fund and,
in that capacity, provides investment advice on U.S. securities. Delaware
Distributors, L.P. (the "Distributor") is the national distributor for each Fund
and for all of the other mutual funds in the Delaware Group. Delaware Service
Company, Inc. (the "Transfer Agent") is the shareholder servicing, dividend
disbursing, accounting services and transfer agent for each Fund and for all of
the other mutual funds in the Delaware Group. See Summary of Expenses and
Management of the Funds for further information regarding the Manager and the
Sub-Adviser and the fees payable under each Fund's Investment Management
Agreement and the Sub-Advisory Agreement on behalf of Global Assets Fund.

Sales Charges
The price of each of the Class A Shares includes a maximum front-end
sales charge of 4.75% of the offering price, which, based on the net asset
values of the Class A Shares as of the end of the Global Funds, Inc.'s most
recent fiscal year, is equivalent to 4.97% of the amount invested for Global
Bond Fund A Class, 4.96% for Global Assets Fund A Class and 5.02% for Emerging
Markets Fund A Class, and, based on an initial net asset value of $8.50 per
share of International Small Cap Fund A Class, is equivalent to 4.94% of the
amount invested for International Small Cap Fund A Class. The front-end sales
charge is reduced on certain transactions of at least $100,000 but under
$1,000,000. For purchases of $1,000,000 or more, the front-end sales charge
is eliminated. Class A Shares are subject to annual 12b-1 Plan expenses for the
life of the investment.

The price of each of the Class B Shares is equal to the net asset value
per share. Class B Shares are subject to a contingent deferred sales charge
("CDSC") of: (i) 4% if shares are redeemed within two years of purchase; (ii) 3%
if shares are redeemed during the third or fourth year following purchase; (iii)
2% if shares are redeemed during the fifth year following purchase; and (iv) 1%
if shares are redeemed during the sixth year following purchase. Class B Shares
are subject to annual 12b-1 Plan expenses for approximately eight
years after purchase. See Deferred Sales Charge Alternative - Class B Shares
and Automatic Conversion of Class B Shares under Classes of Shares.

The price of the Class C Shares is equal to the net asset value per
share. Class C Shares are subject to a CDSC of 1% if shares are redeemed within
12 months of purchase. Class C Shares are subject to annual 12b-1 Plan expenses
for the life of the investment.

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<PAGE>

(GLOBAL-ITF-ABC)

See Classes of Shares and Distribution (12b-1) and Service under
Management of the Funds.

Purchase Amounts
Generally, the minimum initial investment in any Class is $1,000.
Subsequent investments generally must be at least $100.

Each purchase of Class B Shares is subject to a maximum purchase
limitation of $250,000. For Class C Shares, each purchase must be in an amount
that is less than $1,000,000. An investor may exceed these maximum purchase
limitations for Class B Shares and Class C Shares by making cumulative purchases
over a period of time. An investor should keep in mind, however, that reduced
front-end sales charges apply to investments of $100,000 or more in Class A
Shares, and that Class A Shares are subject to lower annual 12b-1 Plan expenses
than Class B and Class C Shares and generally are not subject to a CDSC. The
minimum and maximum purchase amounts for retirement plans may vary. See How to
Buy Shares.

Redemption and Exchange
Class A Shares of each Fund may be redeemed or exchanged at the net
asset value calculated after receipt of the redemption or exchange request.
Neither the Funds nor the Distributor assesses a charge for redemptions or
exchanges of Class A Shares, except for certain redemptions of shares purchased
at net asset value, which may be subject to a CDSC if a dealer's commission was
paid in connection with such purchases. See Front-End Sales Charge Alternative
Class A Shares under Classes of Shares.

Class B Shares and Class C Shares may be redeemed or exchanged at the
net asset value calculated after receipt of the redemption or exchange request
subject, in the case of redemptions, to any applicable CDSC. Neither the Funds
nor the Distributor assesses any charges other than the CDSC for redemptions or
exchanges of Class B or Class C Shares. There are certain limitations on an
investor's ability to exchange shares between the various classes of shares that
are offered. See Redemption and Exchange.

Open-End Investment Company
Global Funds, Inc. is an open-end, registered management investment
company. International SmalL Cap Fund operates as a diversified fund as defined
under the 1940 Act. Global Bond Fund, Global Assets Fund and Emerging Markets
Fund operate as nondiversified funds as defined under the 1940 Act. Global
Funds, Inc. was organized as a Maryland corporation on May 30, 1991. See Shares
under Management of the Funds.

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(GLOBAL-ITF-ABC)

SUMMARY OF EXPENSES

A general comparison of the sales arrangements and other expenses
applicable to Class A, Class B and Class C Shares of each Fund follows. With
respect to International Small Cap Fund and Emerging Markets Fund, the amounts
set forth below under the heading "Other Operating Expenses" are based on
estimates for that Fund's initial fiscal year in which it conducts operations:

<TABLE>
<CAPTION>
International Small Cap Fund Global Bond Fund
Class A Class B Class C Class A Class B Class C
Shareholder Transaction Expenses Shares Shares Shares Shares Shares Shares
- -------------------------------- ------ ------ ------ ------ ------ ------

<S> <C> <C> <C> <C> <C> <C>
Maximum Sales Charge Imposed
on Purchases (as a percentage
of offering price)....... 4.75% None None 4.75% None None

Maximum Sales Charge imposed
on Reinvested Dividends (as
a percentage of offering pricNone None None None None None None

Maximum Contingent Deferred
Sales Charge (as a percentage
of original purchase price or
redemption proceeds,
as applicable)........... None* 4.00%* 1.00%* None* 4.00%* 1.00%*

Redemption Fees.......... None** None** None** None** None** None**
</TABLE>

<PAGE>
(GLOBAL-ITF-ABC)

<TABLE>
<CAPTION>
Global Assets Fund Emerging Markets Fund
Class A Class B Class C Class A Class B Class C
Shareholder Transaction Expenses Shares Shares Shares Shares Shares Shares
- -------------------------------- ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Maximum Sales Charge Imposed
on Purchases (as a percentage
of offering price)....... 4.75% None None 4.75% None None

Maximum Sales Charge imposed
on Reinvested Dividends (as
a percentage of offering price None None None None None None

Maximum Contingent Deferred
Sales Charge (as a percentage
of original purchase price or
redemption proceeds,
as applicable)........... None* 4.00%* 1.00%* None* 4.00%* 1.00%*

Redemption Fees.......... None** None** None** None** None** None**
</TABLE>

* Class A purchases of $1 million or more may be made at net asset value.
However, if in connection with any such purchase a dealer commission is
paid to the financial adviser through whom such purchase is effected, a
CDSC of 1% will be imposed on certain redemptions within 12 months of
purchase ("Limited CDSC"). Class B Shares are subject to a CDSC of: (i)
4% if shares are redeemed within two years of purchase; (ii) 3% if
shares are redeemed during the third or fourth year following purchase;
(iii) 2% if shares are redeemed during the fifth year following
purchase; (iv) 1% if shares are redeemed during the sixth year
following purchase; and (v) 0% thereafter. Class C Shares are subject
to a CDSC of 1% if the shares are redeemed within 12 months of
purchase. See Contingent Deferred Sales Charge for Certain Redemptions
of Class A Shares Purchased at Net Asset Value under Redemption and
Exchange and Deferred Sales Charge Alternative - Class B Shares and
Level Sales Charge Alternative - Class C Shares under Classes of
Shares.

** CoreStates Bank, N.A. currently charges $7.50 per redemption for
redemptions payable by wire.

Investors utilizing the Delaware Group Asset Planner asset allocation
service also typically incur an annual maintenance fee of $35 per Strategy.
However, effective November 1, 1996, the annual maintenance fee is waived until
further notice. Investors who utilize the Asset Planner for an Individual
Retirement Plan ("IRA") will pay an annual IRA fee of $15 per Social Security
Number. See Delaware Group Asset Planner under How to Buy Shares.

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(GLOBAL-ITF-ABC)

<TABLE>
<CAPTION>
International Small Cap Fund Global Bond Fund
Annual Operating Expenses (as a Class A Class B Class C Class A Class B Class C
percentage of average daily net assets) Shares Shares Shares Shares Shares Shares
- --------------------------------------- ------ ------ ------ ------ ------ ------

<S> <C> <C> <C> <C> <C> <C>
Management Fees
(after voluntary waivers) ............. 0.08++ 0.08%++ 0.08%++ 0.00%++ 0.00%++ 0.00%++

12b-1 Expenses
(including service fees) .............. 0.30%+ 1.00%+ 1.00%+ 0.30%+ 1.00%+ 1.00%+

Other Operating Expenses
(after any voluntary payments) ........ 1.62%++ 1.62%++ 1.62%++ 0.95%++ 0.95%++ 0.95%++

Total Operating Expenses
(after voluntary waivers
and payments).......................... 2.00%++ 2.70%++ 2.70%++ 1.25%++ 1.95%++ 1.95%++

</TABLE>

<TABLE>
<CAPTION>
Global Assets Fund Emerging Markets Funds
Annual Operating Expenses (as a Class A Class B Class C Class A Class B Class C
percentage of average daily net assets) Shares Shares Shares Shares Shares Shares
- --------------------------------------- ------ ------ ------ ------ ------ ------

<S> <C> <C> <C> <C> <C> <C>
Management Fees
(after voluntary waivers) ............. 0.00%++ 0.00%++ 0.00%++ 0.00%++ 0.00%++ 0.00%++

12b-1 Expenses
(including service fees) .............. 0.30%+ 1.00%+ 1.00%+ 0.30%+ 1.00%+ 1.00%+

Other Operating Expenses
(after any voluntary payments) ........ 0.95%++ 0.95%++ 0.95%++ 1.70%++ 1.70%++ 1.70%++

Total Operating Expenses
(after voluntary waivers
and payments).......................... 1.25%++ 1.95%++ 1.95%++ 2.00%++ 2.70%++ 2.70%++
</TABLE>

++ All expense figures for International Small Cap Fund and Emerging
Markets Fund are estimates. Delaware International has elected
voluntarily to waive that portion, if any, of the annual management
fees payable by International Small Cap Fund, Global Bond Fund, Global
Assets Fund and Emerging Markets Fund and to pay a respective Fund's
expenses to the extent necessary to ensure that the Total Operating
Expenses (after voluntary waivers and payments) of the Class A Shares
of both International Small Cap and Emerging Markets Funds do not
exceed 2.00%, and each of the Class B Shares and Class C Shares of
those Funds do not exceed 2.70%, and to the extent necessary to ensure
that the Total Operating Expenses (after voluntary waivers and
payments) of the Class A Shares of both Global Bond and Global Assets
Funds do not exceed 1.25%, and each of the Class B and Class C Shares
of those Funds do not exceed 1.95%, all on an annualized basis
(exclusive of taxes, interest, brokerage commissions and extraordinary
expenses, but inclusive of 12b-1 fees) during the period from the
commencement of the public offering of the Classes of each Fund through
November 30, 1997 (except that the waivers and payments for
International Small Cap Fund will initially be in place through
December 31, 1997). Absent the voluntary fee waivers and payments, the
Total Operating Expenses and Management Fees as a percentage of average
daily net assets for International Small Cap Fund and Emerging Markets
Fund are expected to be, and the Total Operating Expenses and
Management Fees for Global Bond Fund and Global Assets Fund for the
fiscal year ended November 30, 1996 were, as follows:

(GLOBAL-ITF-ABC)

<TABLE>
<CAPTION>
Total Operating Expenses Management Fees
Class A Class B Class C Class A Class B Class C
<S> <C> <C> <C> <C> <C> <C>
International Small Cap Fund 3.17% 3.87% 3.87% 1.25% 1.25% 1.25%
Global Bond Fund 5.00% 5.70% 5.70% 0.70% 0.70% 0.70%
Global Assets Fund 2.72% 3.42% 3.42% 0.73% 0.73% 0.73%
Emerging Markets Fund 4.10% 4.80% 4.80% 1.25% 1.25% 1.25%
</TABLE>

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<PAGE>

For expense information about the Funds' Institutional Classes see the
separate prospectus relating to those classes.

The following example illustrates the expenses that an investor would
pay on a $1,000 investment over various time periods, assuming (1) a 5% annual
rate of return, (2) redemption and no redemption at the end of each time period
and (3) for Class B Shares and Class C Shares, payment of a CDSC at the time of
redemption, if applicable. The following example assumes the voluntary waiver of
the management fee and/or other payments of expenses by the Manager as discussed
in this Prospectus.

<TABLE>
<CAPTION>
International Small Cap Assuming Redemption Assuming No Redemption
1 year 3 years 5 years 10 years 1 year 3 years 5 years 10 years
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Class A Shares $65(1) $107 N/A N/A $65 $107 N/A N/A
Class B Shares(2) $67 $114 N/A N/A $27 $84 N/A N/A
Class C Shares $37 $84 N/A N/A $27 $84 N/A N/A

Global Bond Assuming Redemption Assuming No Redemption
1 year 3 years 5 years 10 years 1 year 3 years 5 years 10 years
Class A Shares $60(1) $85 $113 $191 $60 $85 $113 $191
Class B Shares $60 $91 $125 $209(3) $20 $61 $105 $209(3)
Class C Shares $30 $61 $105 $227 $20 $61 $105 $227

Global Assets Assuming Redemption Assuming No Redemption
1 year 3 years 5 years 10 years 1 year 3 years 5 years 10 years
Class A Shares $60(1) $85 $113 $191 $60 $85 $113 $191
Class B Shares $60 $91 $125 $209(3) $20 $61 $105 $209(3)
Class C Shares $30 $61 $105 $227 $20 $61 $105 $227

Emerging Markets Assuming Redemption Assuming No Redemption
1 year 3 years 5 years 10 years 1 year 3 years 5 years 10 years
Class A Shares $67(1) $107 N/A N/A $67 $107 N/A N/A
Class B Shares(2) $67 $114 N/A N/A $27 $84 N/A N/A
Class C Shares $37 $84 N/A N/A $27 $84 N/A N/A
</TABLE>

(1) Generally, no redemption charge is assessed upon redemption of Class A
Shares. Under certain circumstances, however, a Limited CDSC, which has
not been reflected in this calculation, may be imposed on certain
redemptions within 12 months of purchase. See Contingent Deferred Sales
Charge for Certain Redemptions of Class A Shares Purchased at Net Asset
Value under Redemption and Exchange.

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<PAGE>

(2) At the end of approximately eight years after purchase, Class B Shares
will be automatically converted into Class A Shares. The example above
does not assume conversion of Class B Shares since it reflects figures
only for one and three years. See Automatic Conversion of Class B
Shares under Classes of Shares for a description of the automatic
conversion feature.

(3) At the end of approximately eight years after purchase, Class B Shares
of the Fund will be automatically converted into Class A Shares of the
Fund. The example above assumes conversion of Class B Shares at the end
of the eighth year. However, the conversion may occur as late as three
months after the eighth anniversary of purchase, during which time the
higher 12b-1 Plan fees payable by Class B Shares will continue to be
assessed. Information for the ninth and tenth years reflects expenses
of Class A Shares. See Automatic Conversion of Class B Shares under
Classes of Shares for a description of the automatic conversion
feature.

This example should not be considered a representation of past or future
expenses or performance. Actual expenses may be greater or less than those
shown.

The purpose of the above tables is to assist the investor in
understanding the various costs and expenses that an investor in any of the
Classes will bear directly or indirectly.

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FINANCIAL HIGHLIGHTS

The following financial highlights are derived from the financial statements of
Global Bond Fund, Global Assets Fund and Emerging Markets Fund of Global Funds,
Inc. and have been audited by Ernst & Young LLP, independent auditors. The data
should be read in conjunction with the financial statements, related notes, and
the report of Ernst & Young LLP covering such financial information and
highlights, all of which are incorporated by reference into Part B. Further
information about the Funds' performance is contained in Global Funds, Inc.'s
Annual Report to shareholders. A copy of the Annual Report (including the report
of Ernst & Young LLP) may be obtained from Global Funds, Inc. upon request at no
charge. Financial highlights for International Small Cap Fund are not provided
because that Fund was not operating prior to the date of this Prospectus.
- --------------------------------------------------------------------------------

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<PAGE>

(GLOBAL-ITF-ABC)

GLOB3-CHT

<TABLE>
<CAPTION>
Global Assets Fund Global Assets Fund
Class A Shares Class B Shares
------------------------------ -----------------------------
Period Period
Year 12/27/94(1) Year 12/27/94(1)
Ended through Ended through
11/30/96 11/30/95 11/30/96 11/30/95
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period............. $11.900 $10.000 $11.880 $10.000

Income From Investment Operations
- ---------------------------------
Net Investment Income............................ 0.493 0.301 0.379 0.212
Net Gains (Losses) on Securities
(both realized and unrealized)................ 1.572 1.839 1.606 1.848
------- ------- ------- -------
Total From Investment Operations........... 2.065 2.140 1.985 2.060
------- ------- ------- -------
Less Distributions
- ------------------
Dividends from Net Investment Income............. (0.385) (0.240) (0.295) (0.180)
Distributions from Capital Gains................. (0.270) none (0.270) none
------- ------- ------- -------
Total Distributions........................ (0.655) (0.240) (0.565) (0.180)
------- ------- ------- -------
Net Asset Value, End of Period................... $13.310 $11.900 $13.300 $11.880
======= ======= ======= =======
- ------------------------------

Total Return..................................... 18.17%(3) 21.48%(3) 17.32%(4) 20.73%(4)
- ------------

- ------------------------------

Ratios/Supplemental Data

Net Assets, End of Period (000's omitted)........ $11,878 $3,122 $4,796 $613
Ratio of Expenses to Average Daily Net Assets.... 1.25% 1.25% 1.95% 1.95%
Ratio of Expenses to Average Daily Net Assets
Prior to Expense Limitation................... 2.72% 7.55% 3.42% 8.25%
Ratio of Net Investment Income to
Average Daily Net Assets...................... 4.13% 4.75% 3.43% 4.05%
Ratio of Net Investment Income to Average Daily
Net Assets Prior to Expense Limitation....... 2.66% (1.55%) 1.96% (2.25%)
Portfolio Turnover Rate.......................... 34% 57% 34% 57%
Average Commission Rate Paid..................... $0.0271 N/A $0.0271 N/A

</TABLE>
-12-
<PAGE>
(GLOBAL-ITF-ABC)

<TABLE>
<CAPTION>
Global Assets Fund
Class C Shares
-----------------------------
Period
Year 11/29/95(2)
Ended through
11/30/96 11/30/95
<S> <C> <C>
Net Asset Value, Beginning of Period............. $11.890 $11.940

Income From Investment Operations
- ---------------------------------
Net Investment Income............................ 0.446 none
Net Gains (Losses) on Securities
(both realized and unrealized)................ 1.534 (0.050)
------- -------
Total From Investment Operations........... 1.980 (0.050)
------- -------
Less Distributions
- ------------------
Dividends from Net Investment Income............. (0.350) none
Distributions from Capital Gains................. (0.270) none
------- -------
Total Distributions........................ (0.620) none
------- -------
Net Asset Value, End of Period................... $13.250 $11.890
======= =======
- ------------------------------

Total Return..................................... 17.33%(4) (2)
- ------------

- ------------------------------

Ratios/Supplemental Data

Net Assets, End of Period (000's omitted)........ $1,185 $5
Ratio of Expenses to Average Daily Net Assets..... 1.95% (2)
Ratio of Expenses to Average Daily Net Assets
Prior to Expense Limitation................... 3.42% (2)
Ratio of Net Investment Income to
Average Daily Net Assets...................... 3.43% (2)
Ratio of Net Investment Income to Average Daily
Net Assets Prior to Expense Limitation....... 1.96% (2)
Portfolio Turnover Rate.......................... 34% (2)
Average Commission Rate Paid..................... $0.0271 N/A

</TABLE>
- ---------------
(1) Date of initial public offering; ratios have been annualized but total
return has not been annualized.
(2) Date of initial public offering. The ratios of expenses and net investment
income to average daily net assets, total return and portfolio turnover have
been omitted as management believes that such ratios, total return and
portfolio turnover for this relatively short period are not meaningful.
(3) Does not reflect maximum sales charge that is in effect, 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 Redemptions of
Class A Shares Purchased at Net Asset Value under Redemption and Exchange.
Total return reflects the expense limitations referenced under Summary of
Expenses and Management of the Funds.

(4) Does not include CDSC which varies from 1% - 4% depending upon the holding
period for Class B Shares and 1% for Class C Shares. Total return reflects
the expense limitations referenced under Summary of Expenses and Management
of the Funds.

-13-
<PAGE>

(GLOBAL-ITF-ABC)

GLOB3-CHT

Global Bond Fund Global Bond Fund
Class A Shares Class B Shares
------------------------------ ------------------------------
Period Period
Year 12/27/94(1) Year 12/27/94(1)
Ended through Ended through
11/30/96 11/30/95 11/30/96 11/30/95
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period............. $11.230 $10.000 $11.230 $10.000

Income From Investment Operations
- ---------------------------------
Net Investment Income(5)......................... 0.755 0.659 0.679 0.565
Net Gains (Losses) on Securities
(both realized and unrealized)................ 0.730 1.171 0.735 1.205
------- ------- ------- -------
Total From Investment Operations........... 1.485 1.830 1.414 1.770
------- ------- ------- -------
Less Distributions
- ------------------
Dividends from Net Investment Income............. (0.875) (0.600) (0.794) (0.540)
Distributions from Capital Gains................. (0.360) none (0.360) none
------- ------- ------- -------
Total Distributions........................ (1.235) (0.600) (1.154) (0.540)
------- ------- ------- -------
Net Asset Value, End of Period................... $11.480 $11.230 $11.490 $11.230
======= ======= ======= =======
- ------------------------------

Total Return..................................... 14.35%(3) 18.79%(3) 13.51%(4) 18.23%(4)
- ------------

- ------------------------------

Ratios/Supplemental Data

Net Assets, End of Period (000's omitted)........ $3,467 $889 $707 $115
Ratio of Expenses to Average Daily Net Assets.... 1.25% 1.25% 1.95% 1.95%
Ratio of Expenses to Average Daily Net Assets
Prior to Expense Limitation................... 5.00% 12.34% 5.70% 13.04%
Ratio of Net Investment Income to
Average Daily Net Assets...................... 6.82% 7.70% 6.12% 7.00%
Ratio of Net Investment Income to Average
Daily Net Assets Prior to Expense Limitation.. 3.07% (3.39%) 2.37% (4.09%)
Portfolio Turnover Rate.......................... 42% 98% 42% 98%
Average Commission Rate Paid..................... N/A N/A N/A N/A

</TABLE>
-14-
<PAGE>

(GLOBAL-ITF-ABC)

Global Bond Fund
Class C Shares
-----------------------------
Period
Year 11/29/95(2)
Ended through
11/30/96 11/30/95
<S> <C> <C>
Net Asset Value, Beginning of Period............. $11.240 $11.330

Income From Investment Operations
- ---------------------------------
Net Investment Income(5)......................... 0.680 none
Net Gains (Losses) on Securities
(both realized and unrealized)................ 0.719 (0.036)
------- -------
Total From Investment Operations........... 1.399 (0.036)
------- -------
Less Distributions
- ------------------
Dividends from Net Investment Income............. (0.839) (0.054)
Distributions from Capital Gains................. (0.360) none
------- -------
Total Distributions...................... (1.199) (0.054)
------- -------
Net Asset Value, End of Period................... $11.440 $11.240
======= =======
- ------------------------------

Total Return..................................... 13.51%(4) (2)
- ------------

- ------------------------------

Ratios/Supplemental Data
- ------------------------
Net Assets, End of Period (000's omitted)........ $118 $5
Ratio of Expenses to Average Daily Net Assets..... 1.95% (2)
Ratio of Expenses to Average Daily Net Assets
Prior to Expense Limitation................... 5.70% (2)
Ratio of Net Investment Income to
Average Daily Net Assets...................... 6.12% (2)
Ratio of Net Investment Income to Average Daily
Net Assets Prior to Expense Limitation........ 2.37% (2)
Portfolio Turnover Rate.......................... 42% (2)
Average Commission Rate Paid..................... N/A N/A

</TABLE>
- ----------------
(1) Date of initial public offering; ratios have been annualized but total
return has not been annualized.
(2) Date of initial public offering. The ratios of expenses and net investment
income to average daily net assets, total return and portfolio turnover have
been omitted as management believes that such ratios, total return and
portfolio turnover for this relatively short period are not meaningful.
(3) Does not reflect maximum sales charge that is in effect, 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 Redemptions of
Class A Shares Purchased at Net Asset Value under Redemption and Exchange.
Total return reflects the expense limitations referenced under Summary of
Expenses and Management of the Funds.

(5) The year ended November 30, 1996 per share information was based on the
average share outstanding method.

-15-

<PAGE>

GLOB2-CHT

Emerging Markets Fund Emerging Markets Fund Emerging Markets Fund
Class A Shares Class B Shares Class C Shares
--------------------- -------------------- ---------------------
Period Period Period
6/10/96(1) 6/10/96(1) 6/10/96(1)
through through through
11/30/96 11/30/96 11/30/96
<S> <C> <C> <C>
Net Asset Value, Beginning of Period............. $10.000 $10.000 $10.000

Income From Investment Operations
- ----------------------------------
Net Investment Income(4)......................... 0.180 (0.051) (0.051)
Net Gains (Losses) on Securities
(both realized and unrealized)................ (0.048) (0.009) (0.009)
-------- -------- --------
Total From Investment Operations........... (0.030) (0.060) (0.060)
-------- -------- --------
Less Distributions
- -------------------
Dividends from Net Investment Income............. none none none
Distributions from Capital Gains................. none none none
---- ---- ----
Total Distributions........................... none none none
---- ---- ----
Net Asset Value, End of Period................... $9.970 $9.940 $9.940
======== ======== ========
- ------------------------------

Total Return..................................... (0.30%)(2) (0.60%)(3) (0.60%)(3)
- -------------

- ------------------------------

Ratios/Supplemental Data
- -------------------------
Net Assets, End of Period (000's omitted)........ $2,518 $282 $199
Ratio of Expenses to Average Daily Net Assets.... 2.00% 2.70% 2.70%
Ratio of Expenses to Average Daily Net Assets
Prior to Expense Limitation................... 4.10% 4.80% 4.80%
Ratio of Net Investment Income to
Average Daily Net Assets...................... 0.17% (0.53%) (0.53%)
Ratio of Net Investment Income to Average Daily
Net Assets Prior to Expense Limitation........ (1.93%) (2.63%) (2.63%)
Portfolio Turnover Rate.......................... 36% 36% 36%
Average Commission Rate Paid..................... $0.0073 $0.0073 $0.0073

</TABLE>

- ----------------
(1) Date of initial public offering; ratios have been annualized but total
return has not been annualized.
(2) Does not reflect maximum sales charge that is or was in effect, 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
Redemptions of Class A Shares Purchased at Net Asset Value under Redemption
and Exchange. Total return reflects the expense limitations referenced under
Summary of Expenses and Management of the Funds.
(3) Does not include CDSC which varies from 1% - 4% depending upon the holding
period for Class B Shares and 1% for Class C Shares. Total return reflects
the expense limitations referenced under Summary of Expenses and Management
of the Funds.
(4) The year ended November 30, 1996 per share information was based on the
share outstanding method.

-16-

<PAGE>

INVESTMENT OBJECTIVES AND STRATEGIES

SUITABILITY
Investors considering any of the Funds within Global Funds, Inc. should
have a long-term investment time frame.

The Funds cannot assure a specific rate of return or that principal
will be protected. The value of each Fund's shares can be expected to move up
and down depending on market conditions. Consequently, appreciation may be
obtained in periods of generally rising markets, while in declining markets the
value of each Fund's shares may decline.

Investments in foreign securities, whether equity or fixed-income,
involve special risks including those related to currency fluctuations, as well
as to political, economic and social situations different from and potentially
more volatile than those in the United States. In addition, the accounting, tax
and financial reporting standards of foreign countries are different from and
may be less reliable or comprehensive than those relating to U.S. securities
issuers. See Special Risk Considerations for a complete discussion of the risk
factors affecting any international investment. For these reasons, the Funds are
not suitable for short-term investors. However, through the cautious selection
and supervision of its portfolio, the Manager will strive to achieve each Fund's
objective.

Investors for whom each Fund is suitable are as set forth below:

International Small Cap Fund -- The Fund may be suitable for investors
with a long-term investment horizon (at least three years) who are looking for
long-term growth potential from a portfolio of international securities. The
Fund will invest primarily in equity securities of small non-U.S. companies in
established or emerging countries. Investors should be willing to accept the
risks associated with foreign investing as well as with investments in growth-
oriented or emerging issuers, some of which may be speculative and subject the
Fund to additional investment risk.

Global Bond Fund -- The Fund may be suitable for investors with a
long-term investment horizon (at least three years) who are looking for current
income from a portfolio that includes both U.S. and foreign fixed-income
securities.

Global Assets Fund -- The Fund may be suitable for investors with a
long-term investment horizon (at least three years) who are looking for long-
term total return and would like to pursue such a goal through a portfolio that
includes both fixed-income and equity securities from both the U.S. and foreign
countries. This Fund may be appropriate for investors who would prefer to have a
professional portfolio manager decide how best to allocate holdings among
foreign and U.S. securities.

Emerging Markets Fund -- The Fund may be suitable for investors who are
seeking long-term growth for that portion of an investor's assets that have been
designated for aggressive investments. The Fund will invest primarily in
the securities of emerging markets which may offer high return potential but are
potentially more risky than investments in either the U.S. or established
foreign countries due, among other things, to less well-developed political and
economic systems.

* * *

-17-

<PAGE>

(GLOBAL-ITF-ABC)

Ownership of shares of each Fund reduces the bookkeeping and
administrative inconveniences that would be involved with direct purchases of
the securities held in each Fund's portfolio.

Investors should not consider a purchase of shares of any of the Funds
as equivalent to a complete investment program. The Delaware Group includes a
family of funds, generally available through registered investment dealers,
which may be used together to create a more complete investment program.

INVESTMENT STRATEGY
International Small Cap Fund -- The investment objective of
International Small Cap Fund is to achieve long-term capital appreciation. This
Fund seeks to achieve its objective by investing primarily in equity securities
of smaller non-U.S. companies, which may include companies located or operating
in established or emerging countries. The Fund is an international fund. Under
normal circumstances, at least 65% of the Fund's total assets will be invested
in equity securities of companies organized or having a majority of their assets
in or deriving a majority of their operating income in at least three different
countries outside of the United States. The current market capitalization of the
companies in which the Fund intends to invest primarily generally will be $1.5
billion or less (at the time of purchase).

The equity securities in which the Fund may invest include common
stocks, preferred stocks, rights or warrants to purchase common stocks and
securities convertible into common stocks. The Fund may also invest in foreign
companies through sponsored or unsponsored American Depositary Receipts,
European Depositary Receipts or Global Depositary Receipts ("Depositary
Receipts"), which are receipts typically issued by a bank or trust company
evidencing ownership of underlying securities issued by a foreign company. By
focusing on smaller, non-U.S. companies, the Fund seeks to identify equity
securities of emerging and other growth-oriented companies which in the opinion
of the Manager, are responsive to changes within their markets, and have the
fundamental characteristics to support growth. The Manager will seek to identify
changing and dominant trends within the relevant markets, and will purchase
securities of companies which it believes will benefit from these trends. In
addition, the Manager will consider the financial strength of the company, the
nature of its management, and any developments affecting the company or its
industry. The Manager may invest in smaller capitalization companies that may be
temporarily out of favor or overlooked by securities analysts and whose value,
therefore, may not yet be fully recognized by the market. See Special Risk
Considerations - Small Company Investment Risks.

While the Fund may purchase securities in any foreign country,
developed and underdeveloped, or emerging market countries, it is currently
anticipated that the countries in which the Fund may invest will include, but
not be limited to, Canada, Germany, the United Kingdom, France, the Netherlands,
Belgium, Spain, Switzerland, Japan, Australia, Hong Kong and Singapore/Malaysia
as well as Indonesia, Korea, the Philippines, Taiwan and Thailand. With respect
to certain countries, investments by an investment company may only be made
through investments in closed-end investment companies that in turn are
authorized to invest in the securities of such countries. See Investment Company
Securities under Other Investment Policies and Risk Considerations.

-18-
<PAGE>

purchasing parity approach, the Manager attempts to identify the amount of goods
and services that a dollar will buy in the United States and compare that to the
amount of a foreign currency required to buy the same amount of goods and
services in another country. Eventually, currencies should trade at levels that
should make it possible for the dollar to buy the same amount of goods and
services overseas as in the United States. When the dollar buys less, the
foreign currency may be considered to be overvalued. When the dollar buys more,
the currency may be considered to be undervalued.

The Fund may invest in both open-end and listed or unlisted closed-end
investment companies, as well as unregistered investment companies. See
Investment Company Securities under Other Investment Policies and Risk
Considerations. The Fund may also invest in convertible preferred stocks that
offer enhanced yield features, such as Preferred Equity Redemption Cumulative
Stock, and certain other non-traditional equity securities.

The Fund may invest up to 15% of its net assets in fixed-income
securities issued by emerging country companies, and foreign governments, their
agencies, instrumentalities or political subdivisions, all of which may be high
yield, high risk fixed-income securities rated lower than BBB by Standard &
Poor's Ratings Group ("S&P") and Baa by Moody's Investors Services, Inc.
("Moody's") or, if unrated, are considered by the Manager to be of equivalent
quality and which present special investment risks. The Fund may also invest in
Brady Bonds. See High Yield, High Risk Securities and Special Risk
Considerations.

For temporary defensive purposes, the Fund may invest all or a
substantial portion of its assets in high quality debt instruments issued by
foreign governments, their agencies, instrumentalities or political
subdivisions, the U.S. government, its agencies or instrumentalities (and which
are backed by the full faith and credit of the U.S. government), or issued by
foreign or U.S. companies. For example, the Fund may invest in U.S. fixed-income
markets when the Manager believes that the global equity markets are excessively
volatile or overvalued so that the Fund's objective cannot be achieved in such
markets. Any corporate debt obligations will be rated AA or better by S&P, or Aa
or better by Moody's, or if unrated, will be determined to be of comparable
quality by the Manager. The Fund may also invest in the securities listed above
pending investment of proceeds from new sales of Fund shares and to maintain
sufficient cash to meet redemption requests.

Global Bond Fund -- The objective of Global Bond Fund is to achieve
current income consistent with the preservation of investors' principal. The
Fund seeks to achieve this objective by investing primarily in fixed-income
securities that may also provide the potential for capital appreciation. The
Fund is a global fund. Under normal circumstances, at least 65% of the Fund's
total assets will be invested in the fixed-income securities of issuers
organized or having a majority of their assets in or deriving a majority of
their operating income in at least three different countries, one of which may
be the United States.

The fixed-income securities in which the Fund may invest include
foreign and U.S. government securities and debt obligations of foreign and U.S.
companies which are generally rated A or better by S&P or Moody's, or if
unrated, are deemed to be of comparable quality by the Manager. Generally, the
value of fixed-income securities moves inversely to the movement of market
interest rates. The value of the Fund's portfolio securities and, thus, an
investor's shares will be affected by changes in such rates. It is anticipated
that the average weighted maturity of the portfolio will be in the five-to-ten
year range. If, however, the Manager anticipates a declining interest rate
environment, the average weighted maturity may be extended past ten years.
Conversely, if the Manager anticipates a rising rate environment, the average
weighted maturity may be shortened to less than five years.

-19-

<PAGE>
(GLOBAL-ITF-ABC)

The Fund may also invest in zero coupon bonds and in the debt
securities of supranational entities denominated in any currency. Zero coupon
bonds are debt obligations which do not entitle the holder to any periodic
payments of interest prior to maturity or a specified date when the securities
begin paying current interest, and therefore are issued and traded at a discount
from their face amounts or par value. (See Special Risk Considerations.) A
supranational entity is an entity established or financially supported by the
national governments of one or more countries to promote reconstruction or
development. Examples of supranational entities include, among others, the
International Bank for Reconstruction and Development (more commonly known as
the World Bank), the European Economic Community, the European Coal and Steel
Community, the European Investment Bank, the Inter-Development Bank, the Export-
Import Bank and the Asian Development Bank. For increased safety, the Fund
currently anticipates that a large percentage of its assets will be invested in
securities of supranational entities, and in U.S. and foreign government
securities.

With respect to U.S. government securities, the Fund may invest only in
securities issued or guaranteed as to the payment of principal and interest by
the U.S. government, and those of its agencies or instrumentalities which are
backed by the full faith and credit of the United States. Direct obligations of
the U.S. government which are available for purchase by the Fund include bills,
notes, bonds and other debt securities issued by the U.S. Treasury. These
obligations differ mainly in interest rates, maturities and dates of issuance.
Agencies whose obligations are backed by the full faith and credit of the United
States include the Farmers Home Administration, Federal Financing Bank and
others. With respect to securities issued by foreign governments, their
agencies, instrumentalities or political subdivisions, the Fund will generally
invest in such securities if they have been rated AAA or AA by S&P or Aaa or Aa
by Moody's or, if unrated, have been determined by the Manager to be of
comparable quality.

From time to time, the Fund may find opportunities to pursue its
objective outside of the fixed-income markets, but in no event will such
investments exceed 5% of the Fund's net assets.

Global Assets Fund -- The objective of Global Assets Fund is to achieve
long-term total return for investors. The Fund seeks to achieve this objective
by investing in securities which, in the Manager's or Sub-Adviser's opinion,
will provide higher current income than a portfolio comprised exclusively of
equity securities, along with the potential for capital growth. The Fund is a
global fund. Under normal circumstances, at least 65% of the Fund's total assets
will be invested in the securities of issuers organized or having a majority of
their assets in or deriving a majority of their operating income in at least
three different countries, one of which may be the United States.

The Fund will attempt to achieve its objective by investing in a broad
range of equity and fixed-income securities. In selecting

-20-
<PAGE>

securities investments for the Fund, the Manager will consider an issuer's
competitive position, cost structure and liquidity. Equity securities in which
the Fund may invest include convertible securities, common stocks, preferred
stocks and warrants issued in foreign countries or in the United States. In
selecting equity securities in which the Fund may invest, the Manager will use a
dividend discount analysis and a purchasing power parity approach.

Generally, the Fund may invest in fixed-income securities, including
both foreign and U.S. government securities and debt obligations of foreign and
U.S. companies. With respect to U.S. government securities, the Fund may invest
only in securities identified in Investment Strategy--Global Bond Fund. With
respect to corporate debt obligations, the Fund may invest in securities which
are investment grade as determined by any nationally-recognized statistical
rating organization, such as those rated BBB or better by S&P, or Baa or better
by Moody's, or if unrated, are determined to be of comparable quality by the
Manager. Debt obligations rated BBB and Baa have speculative characteristics.
The Fund may also invest up to 15% of its net assets in high yield, high risk
U.S. fixed-income securities. These securities are rated lower than BBB by S&P
and Baa by Moody's or, if unrated, are considered by the Manager or Sub-Adviser
to be of equivalent quality, and present special investment risks. See High
Yield, High Risk Securities and Special Risk Considerations.

It is anticipated that a portion of the Fund's assets may be invested
in warrants. Warrants permit the Manager to establish an equity position in
selected securities by committing a lower proportion of the portfolio to
equities. The Manager's intention is to invest the difference between the cost
of the warrant and the equivalent equity security in high quality debt
instruments. The Fund may, at any given time, be fully invested in either the
equity or fixed-income markets, depending upon investment opportunities
available in each.

The Fund may invest in zero coupon bonds and in the debt securities of
supranational entities denominated in any currency. See Investment Strategy-
Global Bond Fund.

The Fund may also invest in Depositary Receipts. While the Fund may
purchase securities of issuers in any foreign country, developed and
underdeveloped, or emerging market countries, it is currently anticipated that
the countries in which the Fund may invest, in addition to the United States,
will include, but not be limited to, the nations identified in Investment
Strategy--International Small Cap Fund, as well as Hong Kong,
Singapore/Malaysia, Indonesia, Korea, Malaysia, the Philippines, Taiwan and
Thailand. With respect to certain countries in which the Fund may invest, namely
Korea and Taiwan, investments by an investment company may only be made through
investments in closed-end investment companies. See Investment Company
Securities under Other Investment Policies and Risk Considerations.

Emerging Markets Fund -- The objective of Emerging Markets Fund is to
achieve long-term capital appreciation. The Fund seeks to achieve this objective
by investing primarily in equity securities of issuers located or operating in
emerging countries. The Fund is an international fund. Under normal
circumstances, at least 65% of the Fund's total assets will be invested in
equity securities of issuers organized or having a majority of their assets or
deriving a majority of their operating income in at least three different
countries which are considered to be emerging or developing. The Fund will
attempt to achieve its objective by investing in a broad range of equity
securities, including common stocks, preferred stocks, convertible securities
and warrants issued by companies located or operating in emerging countries.

-21-
<PAGE>
(GLOBAL-ITF-ABC)

regarded by their authorities as developing. In addition, any country that is
included in the IFC Free Index or MSCI EMF Index will be considered to be an
"emerging country." As of the date of this Prospectus, there are more than 130
countries which, in the Manager's judgment, are generally considered to be
emerging or developing countries by the international financial community,
approximately 40 of which currently have stock markets. Within this group of
developing or emerging countries are included almost every nation in the world,
except the United States, Canada, Japan, Australia, New Zealand and most nations
located in Western and Northern Europe.

Currently, investing in many emerging countries is not feasible, or
may, in the Manager's opinion, involve unacceptable political risks. The Fund
will focus its investments in those emerging countries where the Manager
considers the economies to be developing strongly and where the markets are
becoming more sophisticated. The Manager believes that investment opportunities
may result from an evolving long-term international trend favoring
more market-oriented economies, a trend that may particularly benefit certain
countries having developing markets. This trend may be facilitated by local or
international political, economic or financial developments that could benefit
the capital markets in such countries.

In considering possible emerging countries in which the Fund may
invest, the Manager will place particular emphasis on certain factors, such as
economic conditions (including growth trends, inflation rates and trade
balances), regulatory and currency controls, accounting standards and political
and social conditions. It is currently anticipated that the countries in which
the Fund may invest will include, but not be limited to, Argentina, Botswana,
Brazil, Chile, China, Columbia, Greece, Hong Kong, Hungary, India, Indonesia,
Jamaica, Jordan, Kenya, Korea, Malaysia, Mexico, Nigeria, Pakistan, Peru, the
Philippines, Poland, Portugal, Russia, South Africa, Sri Lanka, Taiwan,
Thailand, Turkey, Venezuela and Zimbabwe. As markets in other emerging countries
develop, the Manager expects to expand and further diversify the countries in
which the Fund invests.

Although not an exclusive list of criteria to be considered by the
Manager, an emerging country equity security is one issued by a company that, in
the opinion of the Manager, exhibits one or more of the following
characteristics: (i) its principal securities trading market is an emerging
country, as defined above; (ii) while traded in any market, alone or on a
consolidated basis, the company derives 50% or more of its annual revenues from
either goods produced, sales made or services performed in emerging countries;
or (iii) it is organized under the laws of, and has a principal office in, an
emerging country. Determinations as to eligibility will be made by the Manager
based on publicly available information and inquiries made of the companies.

The Fund may invest in Depositary Receipts, and in both open-end and,
listed or unlisted, closed-end investment companies, as well as unregistered
investment companies. See Investment Company Securities under Other Investment
Policies and Risk Considerations. The Fund may also invest in convertible
preferred stocks that offer enhanced yield features, such as Preferred Equity
Redemption Cumulative Stock, and certain other non-traditional equity
securities.

The Fund may invest up to 35% of its net assets in the type of high
yield, high risk fixed-income securities described with respect to International
Small Cap Fund, and may also invest in Brady Bonds and zero coupon
securities. See High Yield, High Risk Securities and Special Risk
Considerations. For temporary defensive purposes, the Fund may invest all or a
substantial portion of its assets in the same high quality debt instruments in
which International Small Cap Fund may invest. See Investment Objectives and
Strategies- International Small Cap Fund.

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Restricted and Illiquid Securities

Each Fund may invest in restricted securities, including securities
eligible for resale without registration pursuant to Rule 144A ("Rule 144A
Securities") under the Securities Act of 1933 (the "1933 Act"). Rule 144A
permits many privately placed and legally restricted securities to be freely
traded among certain institutional buyers, such as the Funds. See Rule 144A
Securities under Other Investment Policies and Risk Considerations.
International Small Cap Fund and Emerging Markets Fund may invest up to 15% of
the value of their net assets in illiquid securities, which are securities which
may not be disposed of within seven days at the price at which they are carried
on the Fund's books, while Global Assets Fund and Global Bond Fund may invest no
more than 10% of their net assets in such securities. In the event a Fund's
percentage limitation is exceeded, whether due to changes in the market value of
the Fund's illiquid holdings or because a particular security is deemed to have
become illiquid, the Manager will take steps to remedy these circumstances in an
orderly fashion.

High Yield, High Risk Securities
International Small Cap Fund may invest up to 15% of its net assets,
and Emerging Markets Fund may invest up to 35% of its net assets, in high yield,
high risk foreign fixed-income securities, including so-called Brady Bonds.
See Foreign Government Securities Risks under Special Risk Considerations.
Global Assets Fund may invest up to 15% of its net assets in high yield, high
risk U.S. fixed-income securities (commonly known as junk bonds). In the
past, in the opinion of Delaware International and Delaware, the high yields
from these bonds have more than compensated for their higher default rates.
There can be no assurance, however, that yields will continue to offset
default rates on these bonds in the future. Delaware International and Delaware
intend to maintain an adequately diversified portfolio of these bonds. While
diversification can help to reduce the effect of an individual default on the
Funds, there can be no assurance that diversification will protect the Funds
from widespread bond defaults brought about by a sustained economic downturn.

Medium- and low-grade bonds held by the Funds may be issued as a
consequence of corporate restructurings, such as leveraged buy-outs, mergers,
acquisitions, debt recapitalizations or similar events. Also these bonds are
often issued by smaller, less creditworthy companies or by highly leveraged
(indebted) firms, which are generally less able than more financially stable
firms to make scheduled payments of interest and principal. The risks posed by
bonds issued under such circumstances are substantial.

The economy and interest rates may affect these high yield, high risk
securities differently from other securities. Prices have been found to be less
sensitive to interest rate changes than higher rated investments, but more
sensitive to adverse economic changes or individual corporate developments.
Also, during an economic downturn or a substantial period of rising interest
rates, highly leveraged issuers may experience financial stress which would
adversely affect their ability to service principal and interest payment
obligations, to meet projected business goals and to obtain additional
financing. Changes by recognized rating agencies in their rating of any security
and in the ability of an issuer to make payments of interest and principal will
also ordinarily have a more dramatic effect on the values of these investments
than on the values of higher-rated securities. Such changes in value will not
affect cash income derived from these securities, unless the issuers fail to pay
interest or dividends when due. Such changes will, however, affect a Fund's net
asset value per share.

* * *

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units such as the European Currency Unit ("ECU"). For purposes of the 1940 Act,
International Small Cap Fund will operate as a diversified fund, and Global
Bond Fund, Global Assets Fund and Emerging Markets Fund will each operate as a
nondiversified fund. No Fund will concentrate its investments in any particular
industry, which means that no Fund will invest 25% or more of its total assets
in any one industry.

Each Fund's investment objective, Global Funds, Inc.'s designation as
an open-end investment company, International Small Cap Fund's designation as
a diversified fund, Global Bond, Global Assets and Emerging Markets Funds'
designations as nondiversified funds, and each of the Funds' policies concerning
portfolio lending, borrowing and concentration are "fundamental" and may not be
changed unless authorized by the vote of a majority of that Fund's outstanding
voting securities. A vote of a "majority of the outstanding voting securities"
is the vote by the holders of the lesser of a) 67% or more of a Fund's voting
securities present in person or represented by proxy if the holders of more than
50% of the outstanding voting securities of such Fund are present or represented
by proxy; or b) more than 50% of the outstanding voting securities. Part B lists
other more specific investment restrictions of the Funds which may not be
changed without a majority shareholder vote. A brief discussion of those factors
that materially affected each Fund's performance during its most recently
completed fiscal year (except International Small Cap Fund, which had not
commenced operations) appears in Global Funds Inc.'s Annual Report.

The investment policies of the Funds not identified above as
"fundamental" may be changed by the Board of Directors of Global Funds, Inc.
without a shareholder vote. See Special Risk Considerations and Other
Investment Policies and Risk Considerations.

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SPECIAL RISK CONSIDERATIONS

Shareholders should understand that all investments involve risk and
there can be no guarantee against loss resulting from an investment in a Fund,
nor can there be any assurance that the Fund's investment objective will be
attained.

Foreign Securities Risks. Each Fund has the right to purchase
securities in any developed, underdeveloped or emerging country. Investors
should consider carefully the substantial risks involved in investing in
securities issued by companies and governments of foreign nations. These risks
are in addition to the usual risks inherent in domestic investments. There is
the possibility of expropriation, nationalization or confiscatory taxation,
taxation of income earned in foreign nations or other taxes imposed with respect
to investments in foreign nations, foreign exchange control (which may include
suspension of the ability to transfer currency from a given country), default in
foreign government securities, political or social instability or diplomatic
developments which could affect investments in securities of issuers in those
nations.

In addition, in many countries, there is substantially less publicly
available information about issuers than is available in reports about companies
in the United States. Foreign companies are not subject to uniform accounting,
auditing and financial reporting standards, and auditing practices and
requirements may not be comparable to those applicable to United States
companies. In particular, the assets and profits appearing on the financial
statements of a developing or emerging country issuer may not reflect its
financial position or results of operations in the way they would be reflected
had the financial statements been prepared in accordance with United States
generally accepted accounting principles. Also, for an issuer that keeps
accounting records in local currency, inflation accounting rules may require for
both tax and accounting purposes, that certain assets and liabilities be
restated on the issuer's balance sheet in order to express items in terms of
currency or constant purchasing power. Inflation accounting may indirectly
generate losses or profits. Consequently, financial data may be materially
affected by restatements for inflation and may not accurately reflect the real
condition of those issuers and securities markets.

Further, a Fund may encounter difficulty or be unable to pursue legal
remedies and obtain judgments in foreign courts. Commission rates on securities
transactions in foreign countries, which are sometimes fixed rather than subject
to negotiation as in the United States, are likely to be higher. Further, the
settlement period of securities transactions in foreign markets may be longer
than in domestic markets, and may be subject to administrative uncertainties. In
many foreign countries, there is less government supervision and regulation of
business and industry practices, stock exchanges, brokers and listed companies
than in the United States, and capital requirements for brokerage firms are
generally lower. The foreign securities markets of many of the countries in
which a Fund may invest may also be smaller, less liquid and subject to greater
price volatility than those in the United States.

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has been an absence of a capital market structure or market-oriented economy in
certain emerging countries. Further, investments and opportunities for
investments by foreign investors are subject to a variety of national policies
and restrictions in many emerging countries. These restrictions may take the
form of prior governmental approval, limits on the amount or type of securities
held by foreigners, limits on the types of companies in which foreigners may
invest and prohibitions on foreign investments in issuers or industries deemed
sensitive to national interests. Additional restrictions may be imposed at any
time by these or other countries in which a Fund invests. Also, the repatriation
of both investment income and capital from several foreign countries is
restricted and controlled under certain regulations, including, in some cases,
the need for certain governmental consents. Although these restrictions may in
the future make it undesirable to invest in emerging countries, the Manager does
not believe that any current repatriation restrictions would affect its decision
to invest in such countries. Countries such as those in which a Fund may invest,
and in which Emerging Markets Fund will primarily invest, have historically
experienced and may continue to experience, substantial, and in some periods
extremely high rates of inflation for many years, high interest rates, exchange
rate fluctuations or currency depreciation, large amounts of external debt,
balance of payments and trade difficulties and extreme poverty and unemployment.
Other factors which may influence the ability or willingness to service debt
include, but are not limited to, a country's cash flow situation, the
availability of sufficient foreign exchange on the date a payment is due, the
relative size of its debt service burden to the economy as a whole, its
government's policy towards the International Monetary Fund, the World Bank and
other international agencies and the political constraints to which a government
debtor may be subject.

Foreign Government Securities Risks. With respect to investment in debt
issues of foreign governments, the ability of a foreign government or
government-related issuer to make timely and ultimate payments on its external
debt obligations will also be strongly influenced by the issuer's balance of
payments, including export performance, its access to international credits and
investments, fluctuations in interest rates and the extent of its foreign
reserves. A country whose exports are concentrated in a few commodities or whose
economy depends on certain strategic imports could be vulnerable to fluctuations
in international prices of these commodities or imports. To the extent that a
country receives payment for its exports in currencies other than dollars, its
ability to make debt payments denominated in dollars could be adversely
affected. If a foreign government or government-related issuer cannot generate
sufficient earnings from foreign trade to service its external debt, it may need
to depend on continuing loans and aid from foreign governments, commercial banks
and multilateral organizations, and inflows of foreign investment. The
commitment on the part of these foreign governments, multilateral organizations
and others to make such disbursements may be conditioned on the government's
implementation of economic reforms and/or economic performance and the timely
service of its obligations. Failure to implement such reforms, achieve such
levels of economic performance or repay principal or interest when due may
curtail the willingness of such third parties to lend funds, which may further
impair the issuer's ability or willingness to service its debts in a timely
manner. The cost of servicing external debt will also generally be adversely
affected by rising international interest rates because many external debt
obligations bear interest at rates which are adjusted based upon international
interest rates. The ability to service external debt will also depend on the
level of the relevant government's international currency reserves and its
access to foreign exchange. Currency devaluations may affect the ability of a
government issuer to obtain sufficient foreign exchange to service its external
debt.

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government and government-related debt securities to obtain recourse may be
subject to the political climate in the relevant country. In addition, no
assurance can be given that the holders of commercial bank debt will not contest
payments to the holders of other foreign government and government-related debt
obligations in the event of default under their commercial bank loan agreements.

Among the foreign government and government related issuers in which
the Emerging Markets Fund and the International Small Cap Fund may invest are
certain high-yield securities, including so-called Brady Bonds. The issuers of
the foreign government and government-related high yield securities, including
Brady Bonds, in which the Emerging Markets Fund and the International Small Cap
Fund expect to invest have in the past experienced substantial difficulties in
servicing their external debt obligations, which have led to defaults on certain
obligations and the restructuring of certain indebtedness. Restructuring
arrangements have included, among other things, reducing and rescheduling
interest and principal payments by negotiating new or amended credit agreements
or converting outstanding principal and unpaid interest to Brady Bonds, and
obtaining new credit to finance interest payments. Holders of certain foreign
government and government-related high yield securities may be requested to
participate in the restructuring of such obligations and to extend further loans
to their issuers. There can be no assurance that the Brady Bonds and other
foreign government and government-related high yield securities in which the
Emerging Markets Fund and the International Small Cap Fund may invest will not
be subject to similar defaults or restructuring arrangements which may adversely
affect the value of such investments. Furthermore, certain participants in the
secondary market for such debt may be directly involved in negotiating the terms
of these arrangements and may therefore have access to information not available
to other market participants.

Brady Bonds are debt securities issued under the framework of the Brady
Plan, an initiative announced by former U.S. Treasury Secretary Nicholas F.
Brady in 1989 as a mechanism for debtor nations to restructure their outstanding
external indebtedness (generally, commercial bank debt). In restructuring its
external debt under the Brady Plan framework, a debtor nation negotiates with
its existing bank lenders as well as multilateral institutions such as the World
Bank and the International Monetary Fund. The Brady Plan framework, as it has
developed, contemplates the exchange of commercial bank debt for new issued
bonds (Brady Bonds). The investment advisers believe that economic reforms
undertaken by countries in connection with the issuance of Brady Bonds make the
debt of countries which have issued or have announced plans to issue Brady Bonds
an attractive opportunity for investment. Investors, however, should recognize
that the Brady Plan only sets forth general guiding principles for economic
reform and debt reduction, emphasizing that solutions must be negotiated on a
case-by-case basis between debtor nations and their creditors. In addition,
Brady Bonds have been issued only recently and, accordingly, do not have a long
payment history.

Small Company Investment Risks. Investments in common stocks in
general are subject to market, economic and business risks that will cause their
price to fluctuate over time. The securities of companies with smaller revenues
and capitalizations in which the International Small Cap Fund may invest may
offer greater opportunity for capital appreciation than larger companies, but
investment in such companies presents greater risks than securities of larger,
more established companies. Historically, smaller capitalization stocks have
been more volatile in price than larger capitalization stocks. Among the
reasons for the greater price volatility of these securities are the lower
degree of liquidity in the markets for such stocks, and the potentially greater
sensitivity of such small companies to changes in or failure of management, and
in many other changes in competitive, business, industry and economic
conditions, including risks associated with limited production, markets,
management depth,

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(GLOBAL-ITF-ABC)

or financial resources. Investors should therefore expect that the value of
International Small Cap Fund's shares will be more volatile than the shares of a
fund that invests in larger capitalization stocks.

Risks Related to Additional Investment Techniques. With respect to
forward foreign currency contracts, the precise matching of forward contract
amounts and the value of the securities involved is generally not possible since
the future value of such securities in foreign currencies will change as a
consequence of market movements in the value of those securities between the
date the forward contract is entered into and the date it matures. The
projection of short-term currency strategy is highly uncertain.

It is impossible to forecast the market value of portfolio securities
at the expiration of the contract. Accordingly, it may be necessary for a Fund
to purchase additional foreign currency on the spot market (and bear the expense
of such purchase) if the market value of the security is less than the amount of
foreign currency the Fund is obligated to deliver (and if a decision is made to
sell the security and make delivery of the foreign currency). Conversely, it may
be necessary to sell on the spot market some of the foreign currency received
upon the sale of the portfolio security if its market value exceeds the amount
of foreign currency the Fund is obligated to deliver.

International Small Cap Fund may invest up to 15% of its net assets,
and Emerging Markets Fund may invest up to 35% of its net assets, in high yield,
high risk foreign fixed-income securities. Global Assets Fund may invest up to
15% of its net assets in high yield, high risk U.S. fixed-income securities.
These securities are rated lower than BBB by S&P and Baa by Moody's or, if
unrated, are considered by Delaware International or Delaware, in the case of
Global Assets Fund, to be of equivalent quality. See Investment Objectives and
Strategies--International Small Cap Fund, Global Assets Fund and Emerging
Markets Fund and High Yield, High Risk Securities. No Fund will purchase
securities rated lower than C by S&P or Ca by Moody's, or, if unrated,
considered to be of an equivalent quality to such ratings by Delaware
International or Delaware. See Appendix C - Ratings to this Prospectus for more
rating information. Fixed-income securities of this type are considered to be of
poor standing and predominantly speculative. Such securities are subject to a
substantial degree of credit risk.

For additional information about each Fund's investment policies and
certain risks associated with investments in certain types of securities
including purchasing put and call options, futures contracts and options
thereon, and options on foreign currencies, see Other Investment Policies and
Risk Considerations. Part B provides more information concerning the Funds'
investment policies, restrictions and risk factors.

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THE DELAWARE DIFFERENCE

PLANS AND SERVICES
The Delaware Difference is our commitment to provide you with superior
information and quality service on your investments in the Delaware Group of
funds.

SHAREHOLDER PHONE DIRECTORY

Investor Information Center
800-523-4640
Fund Information; Literature; Price; Yield and Perform Figures

Shareholder Service Center
800-523-1918

Information on Existing Regular Investment Accounts and
Retirement Plan Accounts; Wire Investments; Wire Liquidations;
Telephone Liquidations and Telephone Exchanges

Delaphone
800-362-FUND
(800-362-3863)

Performance Information
You can call the Investor Information Center at any time for current
performance information. Current yield and total return information may also
be included in advertisements and information given to shareholders. Yields are
computed on an annual basis over a 30-day period.

Shareholder Services
During business hours, you can call the Delaware Group's Shareholder
Service Center. Our representatives can answer any questions about your account,
the Funds, various service features and other funds in the Delaware Group.

Delaphone Service
Delaphone is an account inquiry service for investors with
Touch-Tone(R) phone service. It enables you to get information on your account
faster than the mailed statements and confirmations. Delaphone also provides
current performance information on the Funds, as well as other funds in the
Delaware Group. Delaphone is available seven days a week, 24 hours a day.

Statements and Confirmations
You will receive quarterly statements of your account summarizing all
transactions during the period. A confirmation statement will be sent following
all transactions other than those involving a reinvestment of dividends. You
should examine statements and confirmations immediately and promptly report any
discrepancy by calling the Shareholder Service Center.

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Duplicate Confirmations
If your financial adviser or investment dealer is noted on your
investment application, we will send a duplicate confirmation to him or her.
This makes it easier for your adviser to help you manage your investments.

Tax Information
Each year, Global Funds, Inc. will mail to you information on the tax
status of your dividends and distributions.

Dividend Payments
Dividends, capital gains and other distributions are automatically
reinvested in your account, unless you elect to receive them in cash. You may
also elect to have the dividends earned in one fund automatically invested in
another Delaware Group fund with a different investment objective, subject to
certain exceptions and limitations.

For more information, see Additional Methods of Adding to Your
Investment - Dividend Reinvestment Plan under How to Buy Shares or call the
Shareholder Service Center.

MoneyLine (sm) Services
Delaware Group offers the following services for fast and convenient
transfer of funds between your personal bank account and your Delaware Group
fund account.

1. MoneyLine (sm) Direct Deposit Service
If you elect to have your dividends and distributions paid in cash and
such dividends and distributions are in an amount of $25 or more, you may choose
the MoneyLine (sm) Direct Deposit Service and have such payments transferred
from your Fund account to your predesignated bank account. See Dividends and
Distributions. In addition, you may elect to have your Systematic Withdrawal
Plan payments transferred from your Fund account to your predesignated bank
account through this service. See Systematic Withdrawal Plans under Redemption
and Exchange. This service is not available for certain retirement plans.

2. MoneyLine (sm) On Demand
You or your investment dealer may request purchases and redemptions of
Fund shares by phone using MoneyLine (sm) On Demand. When you authorize the Fund
to accept such requests from you or your investment dealer, funds will be
withdrawn from (for share purchases) or deposited to (for share redemptions)
your predesignated bank account. Your request will be processed the same day if
you call prior to 4 p.m., Eastern time. There is a $25 minimum and $50,000
maximum limit for MoneyLine (sm) On Demand transactions. This service is not
available for retirement plans, except for purchases of shares by IRAs.

For each MoneyLine (sm) Service, it may take up to four business days for
the transactions to be completed. You can initiate either service by completing
an Account Services form. If your name and address are not identical to the name
and address on your Fund account, you must have your signature guaranteed. The
Fund does not charge a fee for MoneyLine (sm) services; however, your bank may
charge a fee. Please call the Shareholder Service Center for additional
information about these services.

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Right of Accumulation
With respect to Class A Shares, the Right of Accumulation feature allows
you to combine the value of your current holdings of Class A Shares, Class B
Shares and Class C Shares of a Fund with the dollar amount of new purchases of
Class A Shares of a Fund to qualify for a reduced front-end sales charge on such
purchases of Class A Shares. Under the Combined Purchases Privilege, you may
also include certain shares that you own in other funds in the Delaware Group.
See Classes of Shares.

Letter of Intention
The Letter of Intention feature permits you to obtain a reduced front-end
sales charge on purchases of Class A Shares by aggregating certain of your
purchases of Delaware Group fund shares over a 13-month period. See Classes of
Shares and Part B.

12-Month Reinvestment Privilege
The 12-Month Reinvestment Privilege permits you to reinvest proceeds from a
redemption of Class A Shares, within one year of the date of the redemption,
without paying a front-end sales charge. See Part B.

Exchange Privilege
The Exchange Privilege permits you to exchange all or part of your
shares into shares of other mutual funds in the Delaware Group, subject to
certain exceptions and limitations. For additional information on exchanges, see
Investing by Exchange under How to Buy Shares and Redemption and Exchange.

Wealth Builder Option
You may elect to invest in the Funds through regular liquidations of
shares in your accounts in other funds in the Delaware Group. Investments under
this feature are exchanges and are therefore subject to the same conditions and
limitations as other exchanges of Fund shares. See Additional Methods of Adding
to Your Investment - Wealth Builder Option and Investing by Exchange under How
to Buy Shares and Redemption and Exchange.

Delaware Group Asset Planner
Delaware Group Asset Planner is an asset allocation service that gives you,
when working with a professional financial adviser, the ability to more easily
design and maintain investments in a diversified selection of Delaware Group
mutual funds. The Asset Planner service offers a choice of four predesigned
allocation strategies (each with a different risk/reward profile) made up of
separate investments in predetermined percentages of Delaware Group funds. With
the guidance of a financial adviser, you may also tailor an allocation strategy
that meets your personal needs and goals. See How to Buy Shares.

Financial Information about the Funds
Each fiscal year, you will receive an audited annual report and an
unaudited semi-annual report. These reports provide detailed information about
each Fund's investments and performance. Global Funds, Inc.'s fiscal year ends
on November 30.

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RETIREMENT PLANNING

An investment in a Fund may be suitable for tax-deferred retirement plans.
Among the retirement plans noted below, Class B Shares are available for
investment only by Individual Retirement Accounts, Simplified Employee Pension
Plans, Salary Reduction Simplified Employee Pension Plans, 457 Deferred
Compensation Plans and 403(b)(7) Deferred Compensation Plans.

Retirement plans may be subject to plan establishment fees, annual
maintenance fees and/or other administrative or trustee fees. Fees are based
upon the number of participants in the plan as well as the services selected.
Additional information about fees is included in retirement plan materials. Fees
are quoted upon request.

Certain shareholder investment services available to non-retirement plan
shareholders may not be available to retirement plan shareholders. Certain
retirement plans may qualify to purchase shares of the Institutional Classes.
For additional information on any of the plans and Delaware's retirement
services, call the Shareholder Service Center or see Part B.

Individual Retirement Account ("IRA")
Individuals, even if they participate in an employer-sponsored retirement
plan, may establish their own retirement program for investments in each of the
Classes. Contributions to an IRA may be tax-deductible and earnings are
tax-deferred. The tax deductibility of IRA contributions is restricted, and in
some cases eliminated, for individuals who participate in certain
employer-sponsored retirement plans and whose annual income exceeds certain
limits. Existing IRAs and future contributions up to the IRA maximums, whether
deductible or not, still earn on a tax-deferred basis.

Simplified Employee Pension Plan ("SEP/IRA")
A SEP/IRA may be established by an employer who wishes to sponsor a
tax-sheltered retirement program by making contributions on behalf of all
eligible employees. Each of the Classes is available for investment by a
SEP/IRA.

Salary Reduction Simplified Employee Pension Plan ("SAR/SEP") Although new
SAR/SEP plans may not be established after December 31, 1996, plans may be
maintained by employers having 25 or fewer employees. An employer may elect to
make additional contributions to such existing plans.

403(b)(7) Deferred Compensation Plan
Permits employees of public school systems or of certain types of
non-profit organizations to enter into a deferred compensation arrangement for
the purchase of shares of each of the Classes.

457 Deferred Compensation Plan
Permits employees of state and local governments and certain other entities
to enter into a deferred compensation arrangement for the purchase of shares of
each of the Classes.

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Prototype Profit Sharing or Money Purchase Pension Plan
Offers self-employed individuals, partnerships and corporations a
tax-qualified plan which provides for the investment of contributions in Class A
Shares or Class C Shares. Class B Shares are not available for purchase by such
plans.

Prototype 401(k) Defined Contribution Plan
Permits employers to establish a tax-qualified plan based on salary
deferral contributions for investment in Class A Shares or Class C Shares. Class
B Shares are not available for purchase by such plans.

SIMPLE IRA
A SIMPLE IRA combines many of the features of an IRA and a 401(k) Plan but
is easier to administer than a typical 401(k) Plan. It requires employers to
make contributions on behalf of their employees and also has a salary deferral
feature that permits employees to defer a portion of their salary into the plan
on a pre-tax basis.

SIMPLE 401(k)
A SIMPLE 401(k) is like a regular 401(k) except that plan sponsors are
limited to 100 employees and, in exchange for mandatory plan sponsor
contributions, discrimination testing is no longer required. Class B Shares are
not available for purchase by such plans.

The Limited CDSC is applicable to any redemptions of net asset value
purchases made on behalf of any group retirement plan on which a dealer's
commission has been paid if such redemption is made pursuant to a withdrawal of
the entire plan from Delaware Group funds.

Allied Plans
Class A Shares are available for purchase by participants in certain 401(k)
Defined Contribution Plans ("Allied Plans") which are made available under a
joint venture agreement between Delaware Distributors, L.P. and another
institution through which mutual funds are marketed and which allow investments
in Class A Shares of designated Delaware Group funds ("eligible Delaware Group
fund shares"), as well as shares of designated classes of non-Delaware Group
funds ("eligible non-Delaware Group fund shares"). Class B Shares and Class C
Shares are not eligible for purchase by Allied Plans.

With respect to purchases made in connection with an Allied Plan, the value
of eligible Delaware Group and eligible non-Delaware Group fund shares held by
the Allied Plan may be combined with the dollar amount of new purchases by that
Allied Plan to obtain a reduced front-end sales charge on additional purchases
of eligible Delaware Group fund shares. See Front-End Sales Charge Alternative
Class A Shares under Classes of Shares.

Participants in Allied Plans may exchange all or part of their eligible
Delaware Group fund shares for other eligible Delaware Group fund shares or for
eligible non-Delaware Group fund shares at net asset value without payment of a
front-end sales charge. However, exchanges of eligible fund shares, both
Delaware Group and non-Delaware Group, which were not subject to a front-end
sales charge, will be subject to the applicable sales charge if exchanged for
eligible Delaware Group fund shares to which a sales charge applies. No sales
charge will apply if the eligible fund shares were previously acquired through
the exchange of eligible shares on which a sales charge was already paid or
through the reinvestment of dividends. See Investing by Exchange.

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A dealer's commission may be payable on purchases of eligible Delaware
Group fund shares under an Allied Plan. In determining a financial adviser's
eligibility for a dealer's commission on net asset value purchases of eligible
Delaware Group fund shares in connection with Allied Plans, all participant
holdings in the Allied Plan will be aggregated. See Front-End Sales Charge
Alternative - Class A Shares under Classes of Shares.

The Limited CDSC is applicable to redemptions of net asset value
purchases from an Allied Plan on which a dealer's commission has been paid.
Waivers of the Limited CDSC, as described under Waiver of Limited Contingent
Deferred Sales Charge - Class A Shares under Redemption and Exchange, apply to
redemptions by participants in Allied Plans except in the case of exchanges
between eligible Delaware Group and non-Delaware Group fund shares. When
eligible Delaware Group fund shares are exchanged into eligible non-Delaware
Group fund shares, the Limited CDSC will be imposed at the time of the exchange,
unless the joint venture agreement specifies that the amount of the Limited CDSC
will be paid by the financial adviser or selling dealer. See Contingent Deferred
Sales Charge for Certain Redemptions of Class A Shares Purchased at Net Asset
Value under Redemption and Exchange.

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(GLOBAL-ITF-ABC)

CLASSES OF SHARES

Alternative Purchase Arrangements
Shares may be purchased at a price equal to the next determined net asset
value per share, subject to a sales charge which may be imposed, at the election
of the purchaser, at the time of the purchase for Class A Shares ("front-end
sales charge alternative"), or on a contingent deferred basis for Class B Shares
("deferred sales charge alternative") or Class C Shares ("level sales charge
alternative").

Class A Shares. An investor who elects the front-end sales charge
alternative acquires Class A Shares, which incur a sales charge when they are
purchased, but generally are not subject to any sales charge when they are
redeemed. Class A Shares are subject to annual 12b-1 Plan expenses of up to a
maximum of 0.30% of average daily net assets of such shares. Certain purchases
of Class A Shares qualify for reduced front-end sales charges. See Front-End
Sales Charge Alternative - Class A Shares, below. See also Contingent Deferred
Sales Charge for Certain Redemptions of Class A Shares Purchased at Net Asset
Value under Redemption and Exchange and Distribution (12b-1) and Service under
Management of the Funds.

Class B Shares. An investor who elects the deferred sales charge
alternative acquires Class B Shares, which do not incur a front-end sales charge
when they are purchased, but are subject to a contingent deferred sales charge
if they are redeemed within six years of purchase. Class B Shares are subject to
annual 12b-1 Plan expenses of up to a maximum of 1% (0.25% of which are service
fees to be paid to the Distributor, dealers or others for providing personal
service and/or maintaining shareholder accounts) of average daily net assets of
such shares for approximately eight years after purchase. Class B Shares permit
all of the investor's dollars to work from the time the investment is made. The
higher 12b-1 Plan expenses paid by Class B Shares will cause such shares to have
a higher expense ratio and to pay lower dividends than Class A Shares. At the
end of approximately eight years after purchase, the Class B Shares will
automatically be converted into Class A Shares and, thereafter, for the
remainder of the life of the investment, the annual 12b-1 Plan fee of up to
0.30% for Class A Shares will apply. See Automatic Conversion of Class B
Shares, below.

Class C Shares. An investor who elects the level sales charge alternative
acquires Class C Shares, which do not incur a front-end sales charge when they
are purchased, but are subject to a contingent deferred sales charge if they are
redeemed within 12 months of purchase. Class C Shares are subject to annual
12b-1 Plan expenses of up to a maximum of 1% (0.25% of which are service fees to
be paid to the Distributor, dealers or others for providing personal service
and/or maintaining shareholder accounts) of average daily net assets of such
shares for the life of the investment. The higher 12b-1 Plan expenses paid by
Class C Shares will cause such shares to have a higher expense ratio and to pay
lower dividends than Class A Shares. Unlike Class B Shares, Class C Shares do
not convert to another class.

The alternative purchase arrangements described above permit investors
to choose the method of purchasing shares that is most suitable given the amount
of their purchase, the length of time they expect to hold their shares and other
relevant circumstances. Investors should determine whether, given their
particular circumstances, it is more advantageous to purchase Class A Shares and
incur a front-end sales charge, purchase Class B Shares and have the entire
initial purchase amount invested in a Fund with their investment being subject
to a CDSC if they redeem shares within six years of purchase, or purchase Class
C Shares and have the entire initial purchase amount invested in a Fund with
their investment being subject to a CDSC if they redeem shares within 12 months
of

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<PAGE>
(GLOBAL-ITF-ABC)

purchase. In addition, investors should consider the level of annual 12b-1 Plan
expenses applicable to each Class. The higher 12b-1 Plan expenses on Class B
Shares and Class C Shares will be offset to the extent a return is realized on
the additional money initially invested upon the purchase of such shares.
However, there can be no assurance as to the return, if any, that will be
realized on such additional money, and the effect of earning a return on such
additional money will diminish over time. In comparing Class B Shares to Class C
Shares, investors should also consider the duration of the annual 12b-1 Plan
expenses to which each of the Classes is subject and the desirability of an
automatic conversion feature, which is available only for Class B Shares.

Prospective investors should refer to Appendix A--Investment Illustrations
in this Prospectus for an illustration of the potential effect that each of the
purchase options may have on a long-term shareholder's investment.

For the distribution and related services provided to, and the expenses
borne on behalf of, the Funds, the Distributor and others will be paid, in the
case of the Class A Shares, from the proceeds of the front-end sales charge and
12b-1 Plan fees and, in the case of the Class B Shares and the Class C Shares,
from the proceeds of the 12b-1 Plan fees and, if applicable, the CDSC incurred
upon redemption. Financial advisers may receive different compensation for
selling Class A, Class B and Class C Shares. Investors should understand that
the purpose and function of the respective 12b-1 Plans and the CDSCs applicable
to Class B Shares and Class C Shares are the same as those of the 12b-1 Plan and
the front-end sales charge applicable to Class A Shares in that such fees and
charges are used to finance the distribution of the respective Classes. See
Distribution (12b-1) and Service under Management of the Funds.

Dividends paid on Class A, Class B and Class C Shares, to the extent any
dividends are paid, will be calculated in the same manner, at the same time, on
the same day and will be in the same amount, except that the additional amount
of 12b-1 Plan expenses relating to Class B Shares and Class C Shares will be
borne exclusively by such shares. See Calculation of Offering Price and Net
Asset Value Per Share.

The NASD has adopted certain rules relating to investment company sales
charges. Global Funds, Inc. and the Distributor intend to operate in compliance
with these rules.

Front-End Sales Charge Alternative - Class A Shares
Class A Shares may be purchased at the offering price, which reflects a
maximum front-end sales charge of 4.75%. See Calculation of Offering Price and
Net Asset Value Per Share.

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<PAGE>

(GLOBAL-ITF-ABC)

Purchases of $100,000 or more carry a reduced front-end sales charge as
shown in the following table.

International Small Cap Fund A Class
Global Bond Fund A Class
Global Assets Fund A Class
Emerging Markets Fund A Class
- ---------------------------------------------------------------------------------------------------------------------------------
Dealer's
Commission***
Front-End Sales Charge as % of as % of
Offering Offering
Amount of Purchase Price Amount Invested** Price
- ---------------------------------------------------------------------------------------------------------------------------------

International Global Global Emerging
Small Cap Bond Assets Markets
Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C>
Less than $100,000 4.75% 4.94% 4.97% 4.96% 5.02% 4.00%
$100,000 but under $250,000 3.75 3.88% 3.92 3.91 3.92 3.00
$250,000 but under $500,000 2.50 2.59% 2.53 2.56 2.61 2.00
$500,000 but under $1,000,000* 2.00 2.00% 2.01 2.03 2.01 1.60
- ----------------------------------------------------------------------------------------------------------------------------------

</TABLE>

* There is no front-end sales charge on purchases of Class A Shares of $1
million or more but, under certain limited circumstances, a 1% Limited CDSC
may apply upon redemption of such shares.

** Based on the net asset value per share of the respective Class A Shares as
of the end of Global Funds, Inc.'s most recent fiscal year. Based on the
initial net asset value of $8.50 per share of International Small Cap Fund A
Class.

*** Financial institutions or their affiliated brokers may receive an agency
transaction fee in the percentages set forth above.
- --------------------------------------------------------------------------------

A Fund must be notified when a sale takes place which would qualify for the
reduced front-end sales charge on the basis of previous or current
purchases. The reduced front-end sales charge will be granted upon
confirmation of the shareholder's holdings by such Fund. Such reduced
front-end sales charges are not retroactive.

From time to time, upon written notice to all of its dealers, the
Distributor may hold special promotions for specified periods during which
the Distributor may reallow to dealers up to the full amount of the
front-end sales charge shown above. In addition, certain dealers who enter
into an agreement to provide extra training and information on Delaware
Group products and services and who increase sales of Delaware Group funds
may receive an additional commission of up to 0.15% of the offering price.
Dealers who receive 90% or more of the sales charge may be deemed to be
underwriters under the 1933 Act.

- --------------------------------------------------------------------------------

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<PAGE>

For initial purchases of Class A Shares of $1,000,000 or more, a
dealer's commission may be paid by the Distributor to financial advisers through
whom such purchases are made in accordance with the following schedule:

Dealer's Commission
(as a percentage of
Amount of Purchase amount purchased)
------------------- --------------------
Up to $2 million 1.00%
Next $1 million up to $3 million 0.75
Next $2 million up to $5 million 0.50
Amount over $5 million 0.25

In determining a financial adviser's eligibility for the dealer's
commission, purchases of Class A Shares of other Delaware Group funds as to
which a Limited CDSC applies may be aggregated with those of the Class A Shares
of a Fund. Financial advisers also may be eligible for a dealer's commission in
connection with certain purchases made under a Letter of Intention or pursuant
to an investor's Right of Accumulation. Financial advisers should contact the
Distributor concerning the applicability and calculation of the dealer's
commission in the case of combined purchases.

An exchange from other Delaware Group funds will not qualify for
payment of the dealer's commission, unless a dealer's commission or similar
payment has not been previously paid on the assets being exchanged. The schedule
and program for payment of the dealer's commission are subject to change or
termination at any time by the Distributor at its discretion.

Redemptions of Class A Shares purchased at net asset value may result
in the imposition of a Limited CDSC if the dealer's commission described above
was paid in connection with the purchase of those shares. See Contingent
Deferred Sales Charge for Certain Redemptions of Class A Shares Purchased at Net
Asset Value under Redemption and Exchange.

Combined Purchases Privilege
By combining your holdings of Class A Shares with your holdings of
Class B Shares and/or Class C Shares of a Fund and shares of other funds in the
Delaware Group, except those noted below, you can reduce the front-end sales
charges on any additional purchases of Class A Shares. Shares of Delaware Group
Premium Fund, Inc. beneficially owned in connection with ownership of variable
insurance products may be combined with other Delaware Group fund holdings.
Assets held in any stable value product available through the Delaware Group may
be combined with other Delaware Group fund holdings. Shares of other funds that
do not carry a front-end sales charge or CDSC may not be included unless they
were acquired through an exchange from a Delaware Group fund that does carry a
front-end sales charge or CDSC.

This privilege permits you to combine your purchases and holdings with
those of your spouse, your children under 21 and any trust, fiduciary or
retirement account for the benefit of such family members.

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<PAGE>
(GLOBAL-ITF-ABC)

It also permits you to use these combinations under a Letter of
Intention. A Letter of Intention allows you to make purchases over a 13-month
period and qualify the entire purchase for a reduction in front-end sales
charges on Class A Shares.

Combined purchases of $1,000,000 or more, including certain purchases
made at net asset value pursuant to a Right of Accumulation or under a Letter of
Intention, may result in the payment of a dealer's commission and the
applicability of a Limited CDSC. Investors should consult their financial
advisers or the Shareholder Service Center about the operation of these
features. See Front-End Sales Charge Alternative -Class A Shares, above.

Buying Class A Shares at Net Asset Value
Class A Shares of a Fund may be purchased at net asset value under the
Delaware Group Dividend Reinvestment Plan and, under certain circumstances, the
Exchange Privilege and the 12-Month Reinvestment Privilege. See The Delaware
Difference and Redemption and Exchange for additional information.

Purchases of Class A Shares may be made at net asset value by current
and former officers, directors and employees (and members of their families) of
the Manager, 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. Individual
purchases, including those in retirement accounts, must be for accounts in the
name of the individual or a qualifying family member.

Purchases of Class A Shares may also be made by clients of registered
representatives of an authorized investment dealer at net asset value within 12
months after the registered representative changes employment, if the purchase
is funded by proceeds from an investment where a front-end sales charge,
contingent deferred sales charge or other sales charge has been assessed.
Purchases of Class A Shares may also be made at net asset value by bank
employees who provide services in connection with agreements between the bank
and unaffiliated brokers or dealers concerning sales of shares of Delaware Group
funds. In addition, purchases of Class A Shares may be made by financial
institutions investing for the account of their trust customers when they are
not eligible to purchase shares of a Fund's institutional class. Officers,
directors and key employees of institutional clients of the Manager or any of
its affiliates may purchase Class A Shares at net asset value. Moreover,
purchases may be effected at net asset value for the benefit of the clients of
brokers, dealers and registered investment advisers affiliated with a broker or
dealer, if such broker, dealer or investment adviser has entered into an
agreement with the Distributor providing specifically for the purchase of Class
A Shares in connection with special investment products, such as wrap accounts
or similar fee based programs.

Purchases of Class A Shares at net asset value may also be made by any
group retirement plan (excluding defined benefit pension plans), or such plans
of the same employer, for which plan participant records are maintained on the
Delaware Investment & Retirement Services, Inc. ("DIRSI") proprietary record
keeping system that (i) has in excess of $500,000 of plan assets invested in
Class A Shares of Delaware Group funds and in any stable value product available
through the Delaware Group, or (ii) is sponsored by an employer that has at any
point after May 1, 1997 more than 100 employees while such plan has held Class A
Shares of a Delaware Group fund and such

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<PAGE>

employer has properly represented to DIRSI in writing that it has the requisite
number of employees and has received written confirmation back from DIRSI.

Investors in Delaware-Voyageur Unit Investment Trusts may reinvest
monthly dividend checks and/or repayment of invested capital into Class A Shares
of any of the funds in the Delaware Group at net asset value.

Investments in Class A Shares made by plan level and/or participant
retirement accounts that are for the purpose of repaying a loan taken from such
accounts will be made at net asset value. Loan repayments made to a Delaware
Group account in connection with loans originated from accounts previously
maintained by another investment firm will also be invested at net asset value.

A Fund must be notified in advance that an investment qualifies for
purchase at net asset value.

Group Investment Plans
Group Investment Plans (e.g., SEP/IRA, SAR/SEP, SIMPLE IRA, SIMPLE
401(k), Profit Sharing, Money Purchase Pension, 401(k) Defined Contribution
Plans, and 403(b)(7) and 457 Deferred Compensation Plans) may benefit from the
reduced front-end sales charges available on Class A Shares based on total
plan assets. If a company has more than one plan investing in the Delaware
Group of funds, then the total amount invested in all plans will be aggregated
to determine the applicable front-end sales charge reduction on each purchase,
both initial and subsequent, if, at the time of each such purchase, the company
notifies the Fund in which it is investing that it qualifies for the reduction.
Employees participating in such Group Investment Plans may also combine the
investments held in their plan account to determine the front-end sales charge
applicable to purchases in non-retirement Delaware Group investment accounts if,
at the time of each such purchase, they notify the Fund in which they are
investing that they are eligible to combine purchase amounts held in their plan
account.

For additional information on retirement plans, including plan forms,
applications, minimum investments and any applicable account maintenance fees,
contact your investment dealer or the Distributor.

For other retirement plans and special services, see Retirement
Planning.

Deferred Sales Charge Alternative - Class B Shares
Class B Shares may be purchased at net asset value without a front-end
sales charge and, as a result, the full amount of the investor's purchase
payment will be invested in Fund shares. The Distributor currently anticipates
compensating dealers or brokers for selling Class B Shares at the time of
purchase from its own assets in an amount equal to no more than 4% of the dollar
amount purchased. In addition, from time to time, upon written notice to all of
its dealers, the Distributor may hold special promotions for specified periods
during which the Distributor may pay additional compensation to dealers or
brokers for selling Class B Shares at the time of purchase. As discussed below,
however, Class B Shares are subject to annual 12b-1 Plan expenses and, if
redeemed within six years of purchase, a CDSC.

Proceeds from the CDSC and the annual 12b-1 Plan fees are paid to the
Distributor and others for

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<PAGE>

providing distribution and related services, and bearing related expenses, in
connection with the sale of Class B Shares. These payments support the
compensation paid to dealers or brokers for selling Class B Shares. Payments to
the Distributor and others under the Class B 12b-1 Plan may be in an amount
equal to no more than 1% annually. The combination of the CDSC and the proceeds
of the 12b-1 Plan fees makes it possible for a Fund to sell Class B Shares
without deducting a front-end sales charge at the time of purchase.

Holders of Class B Shares who exercise the exchange privilege described
below will continue to be subject to the CDSC schedule for the Class B Shares
described in this Prospectus, even after the exchange. Such CDSC schedule may be
higher than the CDSC schedule for the Class B Shares acquired as a result of the
exchange. See Redemption and Exchange.

Automatic Conversion of Class B Shares
Class B Shares, other than shares acquired through reinvestment of
dividends, held for eight years after purchase are eligible for automatic
conversion into Class A Shares. Conversions of Class B Shares into Class A
Shares will occur only four times in any calendar year, on the last business day
of the second full week of March, June, September and December (each, a
"Conversion Date"). If the eighth anniversary after a purchase of Class B Shares
falls on a Conversion Date, an investor's Class B Shares will be converted on
that date. If the eighth anniversary occurs between Conversion Dates, an
investor's Class B Shares will be converted on the next Conversion Date after
such anniversary. Consequently, if a shareholder's eighth anniversary falls on
the day after a Conversion Date, that shareholder will have to hold Class B
Shares for as long as three additional months after the eighth anniversary of
purchase before the shares will automatically convert into Class A Shares.

Class B Shares of a fund acquired through a reinvestment of dividends
will convert to the corresponding Class A Shares of that fund (or, in the case
of Delaware Group Cash Reserve, Inc., the Delaware Cash Reserve Consultant
Class) pro-rata with Class B Shares of that fund not acquired through dividend
reinvestment.

All such automatic conversions of Class B Shares will constitute
tax-free exchanges for federal income tax purposes. See Taxes.

Level Sales Charge Alternative - Class C Shares
Class C Shares may be purchased at net asset value without a front-end
sales charge and, as a result, the full amount of the investor's purchase
payment will be invested in Fund shares. The Distributor currently anticipates
compensating dealers or brokers for selling Class C Shares at the time of
purchase from its own assets in an amount equal to no more than 1% of the dollar
amount purchased. As discussed below, however, Class C Shares are subject to
annual 12b-1 Plan expenses and, if redeemed within 12 months of purchase, a
CDSC.

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<PAGE>
(GLOBAL-ITF-ABC)

Holders of Class C Shares who exercise the exchange privilege described
below will continue to be subject to the CDSC schedule for the Class C Shares as
described in this Prospectus. See Redemption and Exchange.

Contingent Deferred Sales Charge - Class B Shares and Class C Shares Class B
Shares redeemed within six years of purchase may be subject to
a CDSC at the rates set forth below and Class C Shares redeemed within 12 months
of purchase may be subject to a CDSC of 1%. CDSCs are charged as a percentage of
the dollar amount subject to the CDSC. The charge will be assessed on an amount
equal to the lesser of the net asset value at the time of purchase of the shares
being redeemed or the net asset value of those shares at the time of redemption.
No CDSC will be imposed on increases in net asset value above the initial
purchase price, nor will a CDSC be assessed on redemptions of shares acquired
through reinvestments of dividends or capital gains distributions. For purposes
of this formula, the "net asset value at the time of purchase" will be the net
asset value at purchase of Class B Shares or Class C Shares of a Fund, even
if those shares are later exchanged for shares of another Delaware Group fund.
In the event of an exchange of the shares, the "net asset value of such shares
at the time of redemption" will be the net asset value of the shares that were
acquired in the exchange.

The following table sets forth the rates of the CDSC for the Class B
Shares of the Funds:

Contingent Deferred
Sales Charge (as a
Percentage of
Dollar Amount
Year After Purchase Made Subject to Charge)
-------------------------- ---------------------
0-2 4%
3-4 3%
5 2%
6 1%
7 and thereafter None

During the seventh year after purchase and, thereafter, until converted
automatically into Class A Shares, Class B Shares will still be subject to the
annual 12b-1 Plan expenses of up to 1% of average daily net assets of those
shares. See Automatic Conversion of Class B Shares, above. Investors are
reminded that the Class A Shares into which the Class B Shares will convert are
subject to ongoing annual 12b-1 Plan expenses of up to a maximum of 0.30% of
average daily net assets of such shares.

In determining whether a CDSC applies to a redemption of Class B
Shares, it will be assumed that shares held for more than six years are redeemed
first, followed by shares acquired through the reinvestment of dividends or
distributions, and finally by shares held longest during the six-year period.
With respect to Class C Shares, it will be assumed that shares held for more
than 12 months are redeemed first followed by shares acquired through the
reinvestment of dividends or distributions, and finally by

-42-

<PAGE>
(GLOBAL-ITF-ABC)

shares held for 12 months or less.

All investments made during a calendar month, regardless of what day of
the month the investment occurred, will age one month on the last day of that
month and each subsequent month.

The CDSC is waived on certain redemptions of Class B Shares and Class C
Shares. See Waiver of Contingent Deferred Sales Charge - Class B and Class C
Shares under Redemption and Exchange.

Other Payments to Dealers -- Class A, Class B and Class C Shares
From time to time at the discretion of the Distributor, all registered
broker/dealers whose aggregate sales of the Classes exceed certain limits, as
set by the Distributor, may receive from the Distributor an additional payment
of up to 0.25% of the dollar amount of such sales. The Distributor may also
provide additional promotional incentives or payments to dealers that sell
shares of the Delaware Group of funds. In some instances, these incentives or
payments may be offered only to certain dealers who maintain, have sold or may
sell certain amounts of shares.

Subject to pending amendments to the NASD's Rules of Fair Practice, in
connection with the promotion of Delaware Group fund shares, the Distributor
may, from time to time, pay to participate in dealer-sponsored seminars and
conferences, reimburse dealers for expenses incurred in connection with
preapproved seminars, conferences and advertising and may, from time to time,
pay or allow additional promotional incentives to dealers, which shall include
non-cash concessions, such as certain luxury merchandise or a trip to or
attendance at a business or investment seminar at a luxury resort, as part of
preapproved sales contests. Payment of non-cash compensation to dealers is
currently under review by the NASD and the Securities and Exchange Commission.
It is likely that the NASD's Rules of Fair Practice will be amended such that
the ability of the Distributor to pay non-cash compensation as described above
will be restricted in some fashion. The Distributor intends to comply with the
NASD's Rules of Fair Practice as they may be amended.

International Small Cap Fund Institutional Class, Global Bond Fund Institutional
Class, Global Assets Fund Institutional Class and Emerging Markets Fund
Institutional Class
In addition to offering Class A, Class B and Class C Shares, Global
Funds, Inc. also offers International Small Cap Fund Institutional Class, Global
Bond Fund Institutional Class, Global Assets Fund Institutional Class and
Emerging Markets Fund Institutional Class, which are described in a separate
prospectus and are available for purchase only by certain investors.
Institutional Class shares generally are distributed directly by the Distributor
and do not have a front-end sales charge, a CDSC or a Limited CDSC and are not
subject to 12b-1 Plan distribution expenses. To obtain the prospectus that
describes the Institutional Classes, contact the Distributor by writing to the
address or by calling the telephone number listed on the back cover of this
Prospectus.

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<PAGE>
(GLOBAL-ITF-ABC)

HOW TO BUY SHARES

Purchase Amounts
Generally, the minimum initial purchase is $1,000 for Class A Shares,
Class B Shares and Class C Shares. Subsequent purchases of shares of any Class
generally must be $100 or more. For purchases under the Uniform Gifts to
Minors Act or Uniform Transfers to Minors Act or through an Automatic Investing
Plan, there is a minimum initial purchase of $250 and a minimum subsequent
purchase of $25. Minimum purchase requirements do not apply to retirement plans
other than IRAs, for which there is a minimum initial purchase of $250, and a
minimum subsequent purchase of $25, regardless of which Class is selected.

There is a maximum purchase limitation of $250,000 on each purchase of
Class B Shares. For Class C Shares, each purchase must be in an amount that is
less than $1,000,000. An investor may exceed these maximum purchase limitations
by making cumulative purchases over a period of time. In doing so, an investor
should keep in mind that reduced front-end sales charges are available on
investments of $100,000 or more in Class A Shares, and that Class A Shares (i)
are subject to lower annual 12b-1 Plan expenses than Class B Shares and Class C
Shares and (ii) generally are not subject to a CDSC. For retirement plans, the
maximum purchase limitations apply only to the initial purchase of Class B
Shares or Class C Shares by the plan.

Investing through Your Investment Dealer
You can make a purchase of shares of the Funds through most investment
dealers who, as part of the service they provide, must transmit orders promptly.
They may charge for this service. If you want a dealer but do not have one, the
Delaware Group can refer you to one.

Investing by Mail
1. Initial Purchases--An Investment Application or, in the case of a retirement
account, an appropriate retirement plan application, must be completed, signed
and sent with a check, payable to the specific Fund and Class selected to
Delaware Group at 1818 Market Street, Philadelphia, PA 19103.

2. Subsequent Purchases--Additional purchases may be made at any time by mailing
a check payable to the specific Fund and Class selected. Your check should be
identified with your name(s) and account number. An investment slip (similar to
a deposit slip) is provided at the bottom of transaction confirmations and
dividend statements that you will receive from Global Funds, Inc. Use of this
investment slip can help expedite processing of your check when making
additional purchases. Your investment may be delayed if you send additional
purchases by certified mail.

Investing by Wire
You may purchase shares by requesting your bank to transmit funds by
wire to CoreStates Bank, N.A., ABA #031000011, account number 1412893401
(include your name(s) and your account number for the Class in which you are
investing).

1. Initial Purchases--Before you invest, telephone the Shareholder Service
Center to get an account

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<PAGE>

number. If you do not call first, processing of your investment may be delayed.
In addition, you must promptly send your Investment Application or, in the case
of a retirement account, an appropriate retirement plan application, for the
specific Fund and Class selected, to Delaware Group at 1818 Market Street,
Philadelphia, PA 19103.

2. Subsequent Purchases--You may make additional investments anytime by wiring
funds to CoreStates Bank, N.A., as described above. You should advise the
Shareholder Service Center by telephone of each wire you send.

If you want to wire investments to a retirement plan account, call the
Shareholder Service Center for special wiring instructions.

Investing by Exchange
If you have an investment in another mutual fund in the Delaware Group,
you may write and authorize an exchange of part or all of your investment into
shares of a Fund. If you wish to open an account by exchange, call the
Shareholder Service Center for more information. All exchanges are subject to
the eligibility and minimum purchase requirements set forth in each fund's
prospectus. See Redemption and Exchange for more complete information concerning
your exchange privileges.

Holders of Class A Shares of a Fund may exchange all or part of their
shares for certain of the shares of other funds in the Delaware Group, including
other Class A Shares, but may not exchange their Class A Shares for Class B
Shares or Class C Shares of the Fund or of any other fund in the Delaware Group.
Holders of Class B Shares of a Fund are permitted to exchange all or part of
their Class B Shares only into Class B Shares of other Delaware Group funds.
Similarly, holders of Class C Shares of a Fund are permitted to exchange all or
part of their Class C Shares only into Class C Shares of other Delaware Group
funds. See Appendix B--Classes Offered for a list of Delaware Group funds and
the classes they offer. Class B Shares of a Fund and Class C Shares of a Fund
acquired by exchange will continue to carry the CDSC and, in the case of Class B
Shares, the automatic conversion schedule of the fund from which the exchange is
made. The holding period of Class B Shares of a Fund acquired by exchange will
be added to that of the shares that were exchanged for purposes of determining
the time of the automatic conversion into Class A Shares of that Fund.

Permissible exchanges into Class A Shares of a Fund will be made
without a front-end sales charge, except for exchanges of shares that were not
previously subject to a front-end sales charge (unless such shares were acquired
through the reinvestment of dividends). Permissible exchanges into Class B
Shares or Class C Shares of a Fund will be made without the imposition of a CDSC
by the fund from which the exchange is being made at the time of the exchange.

See Allied Plans under Retirement Planning for information on exchanges
by participants in an Allied Plan.

Additional Methods of Adding to Your Investment
Call the Shareholder Service Center for more information if you wish to
use the following services:

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1. Automatic Investing Plan
The Automatic Investing Plan enables you to make regular monthly investments
without writing or mailing checks. You may authorize Global Funds, Inc. to
transfer a designated amount monthly from your checking account to your Fund
account. Many shareholders use this as an automatic savings plan. Shareholders
should allow a reasonable amount of time for initial purchases and changes to
these plans to become effective.

This option is not available to participants in the following plans:
SAR/SEP, SEP/IRA, SIMPLE IRA, SIMPLE 401(k), Profit Sharing and Money Purchase
Pension Plans, 401(k) Defined Contribution Plans or 403(b)(7) or 457 Deferred
Compensation Plans.

2. Direct Deposit
You may have your employer or bank make regular investments directly to your
account for you (for example: payroll deduction, pay by phone, annuity
payments). Each Fund also accepts preauthorized recurring government and private
payments by Electronic Fund Transfer, which avoids mail time and check clearing
holds on payments such as social security, federal salaries, Railroad Retirement
benefits, etc.

* * *

Should investments through an automatic investing plan or by direct
deposit be reclaimed or returned for some reason, Global Funds, Inc. has the
right to liquidate your shares to reimburse the government or transmitting bank.
If there are insufficient funds in your account, you are obligated to reimburse
the Fund.

3. MoneyLine (sm) On Demand
Through the MoneyLine (sm) On Demand service, you or your investment dealer
may call the Fund to request a transfer of funds from your predesignated bank
account to your Fund account. See MoneyLine (sm) Services under The Delaware
Difference for additional information about this service.

4. Wealth Builder Option
You can use our Wealth Builder Option to invest in a Fund through regular
liquidations of shares in your accounts in other funds in the Delaware Group.
You may also elect to invest in other mutual funds in the Delaware Group through
the Wealth Builder Option through regular liquidations of shares in your Fund
account.

Under this automatic exchange program, you can authorize regular
monthly amounts (minimum of $100 per fund) to be liquidated from your account in
one or more funds in the Delaware Group and invested automatically into any
other account in a Delaware Group mutual fund that you may specify. If in
connection with the election of the Wealth Builder Option, you wish to open a
new account to receive the automatic investment, such new account must meet the
minimum initial purchase requirements described in the prospectus of the fund
that you select. All investments under this option are exchanges and are
therefore subject to the same conditions and limitations as other exchanges
noted above. You can terminate your participation in Wealth Builder at any time
by giving written notice to the fund from which

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the exchanges are made. See Redemption and Exchange.

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(GLOBAL-ITF-ABC)

5. Dividend Reinvestment Plan
You can elect to have your distributions (capital gains and/or dividend
income) paid to you by check or reinvested in your account. Or, you may invest
your distributions in certain other funds in the Delaware Group, subject to the
exceptions noted below as well as the eligibility and minimum purchase
requirements set forth in each fund's prospectus.

Reinvestments of distributions into Class A Shares of a Fund or of
other Delaware Group funds are made without a front-end sales charge.
Reinvestments of distributions into Class B Shares of a Fund or of other
Delaware Group funds or into Class C Shares of a Fund or of other Delaware Group
funds are also made without any sales charge and will not be subject to a CDSC
if later redeemed. See Automatic Conversion of Class B Shares under Classes of
Shares for information concerning the automatic conversion of Class B Shares
acquired by reinvesting dividends.

Holders of Class A Shares of a Fund may not reinvest their
distributions into Class B Shares or Class C Shares of any fund in the Delaware
Group, including the Funds. Holders of Class B Shares of a Fund may reinvest
their distributions only into Class B Shares of the funds in the Delaware Group
which offer that class of shares. Similarly, holders of Class C Shares of a Fund
may reinvest their distributions only into Class C Shares of the funds in the
Delaware Group which offer that class of shares. See Appendix B--Classes Offered
for a list of the funds offering those classes of shares. For more information
about reinvestments, call the Shareholder Service Center.

Distributions for capital gains and/or dividends for participants in
the following retirement plans are automatically reinvested into the same
Delaware Group fund: SAR/SEP, SEP/IRA, Profit Sharing, Money Purchase Pension,
401(k), 403(b)(7), or 457 Plans.

Capital gains and/or dividend distributions to participants in the
following retirement plans are automatically reinvested into the same Delaware
Group fund: SAR/SEP, SEP/IRA, SIMPLE IRA, SIMPLE 401(k), Profit Sharing and
Money Purchase Pension Plans, 401(k) Defined Contribution Plans or 403(b)(7) or
457 Deferred Compensation Plans.

Delaware Group Asset Planner
To invest in Delaware Group funds using the Delaware Group Asset
Planner asset allocation service, you should complete a Delaware Group Asset
Planner Account Registration Form, which is available only from a financial
adviser or investment dealer. As previously described, the Delaware Group Asset
Planner service offers a choice of four predesigned asset allocation strategies
(each with a different risk/reward profile) in predetermined percentages in
Delaware Group funds. With the help of a financial adviser, you may also
design a customized asset allocation strategy.

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C Shares are available through the Asset Planner service. Generally, only shares
within the same class may be used within the same Strategy. However, Class A
Shares of a Fund and of other funds in the Delaware Group may be used in the
same Strategy with consultant class shares that are offered by certain other
Delaware Group funds. See Appendix B--Classes Offered for the funds in the
Delaware Group that offer consultant class shares.

An annual maintenance fee, currently $35 per Strategy, is typically due
at the time of initial investment and by September 30 of each subsequent year.
The fee, payable to Delaware Service Company, Inc. to defray extra costs
associated with administering the Asset Planner service, will be deducted
automatically from one of the funds within your Asset Planner account if not
paid by September 30. However, effective November 1, 1996, the annual
maintenance fee is waived until further notice. Investors who utilize the Asset
Planner for an IRA will continue to pay an annual IRA fee of $15 per Social
Security number. See Part B.

Investors will receive a customized quarterly Strategy Report
summarizing all Delaware Group Asset Planner investment performance and account
activity during the prior period. Confirmation statements will be sent following
all transactions other than those involving a reinvestment of distributions.

Certain shareholder services are not available to investors using the
Asset Planner service, due to its special design. These include Delaphone,
Checkwriting, Wealth Builder Option and Letter of Intention. Systematic
Withdrawal Plans are available after the account has been open for two years.

Purchase Price and Effective Date
The offering price and net asset value of Class A, Class B and Class
C Shares are determined as of the close of regular trading on the New York Stock
Exchange (ordinarily, 4 p.m., Eastern time) on days when the Exchange is open.

The effective date of a purchase made through an investment dealer is
the date the order is received by a Fund. The effective date of a direct
purchase is the day your wire, electronic transfer or check is received, unless
it is received after the time the offering price or net asset value of shares is
determined, as noted above. Purchase orders received after such time will be
effective the next business day.

The Conditions of Your Purchase
Each Fund reserves the right to reject any purchase order. If a
purchase is canceled because your check is returned unpaid, you are responsible
for any loss incurred. A Fund can redeem shares from your account(s) to
reimburse itself for any loss, and you may be restricted from making future
purchases in any of the funds in the Delaware Group. Each Fund reserves the
right to reject purchase orders paid by third-party checks or checks 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, you may be subject
to additional bank charges for clearance and currency conversion.

Each Fund also reserves the right, following shareholder notification,
to charge a service fee on non-retirement accounts that, as a result of a
redemption, have remained below the minimum stated

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account balance for a period of three or more consecutive months. Holders of
such accounts may be notified of their insufficient account balance 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 CDSC will apply to such assessments.

Each Fund also reserves the right, upon 60 days' written notice, to
involuntarily redeem accounts that remain under the minimum initial purchase
amount as a result of redemptions. An investor making the minimum initial
investment may be subject to involuntary redemption without the imposition of a
CDSC or Limited CDSC if he or she redeems any portion of his or her account.

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REDEMPTION AND EXCHANGE

You can redeem or exchange your shares in a number of different ways.
The exchange service is useful if your investment requirements change and you
want an easy way to invest in other equity funds, tax- advantaged funds, bond
funds or money market funds. This service is also useful if you are anticipating
a major expenditure and want to move a portion of your investment into a fund
that has the checkwriting feature. Exchanges are subject to the requirements of
each fund and all exchanges of shares constitute taxable events. See Taxes.
Further, in order for an exchange to be processed, shares of the fund being
acquired must be registered in the state where the acquiring shareholder
resides. You may want to consult your financial adviser or investment dealer to
discuss which funds in the Delaware Group will best meet your changing
objectives, and the consequences of any exchange transaction. You may also call
the Delaware Group directly for fund information.

Your shares will be redeemed or exchanged at a price based on the net
asset value next determined after a Fund receives your request in good order,
subject, in the case of a redemption, to any applicable CDSC or Limited CDSC.
For example, redemption or exchange requests received in good order after the
time the offering price and net asset value of shares are determined will be
processed on the next business day. See Purchase Price and Effective Date under
How to Buy Shares. A shareholder submitting a redemption request may indicate
that he or she wishes to receive redemption proceeds of a specific dollar
amount. In the case of such a request, and in the case of certain redemptions
from retirement plan accounts, a Fund will redeem the number of shares necessary
to deduct the applicable CDSC in the case of Class B and Class C Shares, and, if
applicable, the Limited CDSC in the case of Class A Shares and tender to the
shareholder the requested amount, assuming the shareholder holds enough shares
in his or her account for the redemption to be processed in this manner.
Otherwise, the amount tendered to the shareholder upon redemption will be
reduced by the amount of the applicable CDSC or Limited CDSC. Redemption
proceeds will be distributed promptly, as described below, but not later than
seven days after receipt of a redemption request.

Except as noted below, for a redemption request to be in "good order,"
you must provide your account number, account registration, and the total number
of shares or dollar amount of the transaction. For exchange requests, you must
also provide the name of the fund in which you want to invest the proceeds.
Exchange instructions and redemption requests must be signed by the record
owner(s) exactly as the shares are registered. You may request a redemption or
an exchange by calling the Shareholder Service Center at 800-523-1918. Each Fund
may suspend, terminate, or amend the terms of the exchange privilege upon 60
days' written notice to shareholders.

Each Fund will process written and telephone redemption requests to the
extent that the purchase orders for the shares being redeemed have already
settled. Each Fund will honor redemption requests as to shares for which a check
was tendered as payment, but a Fund will not mail or wire the proceeds until it

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is reasonably satisfied that the purchase check has cleared, which may take up
to 15 days from the purchase date. You can avoid this potential delay if you
purchase shares by wiring Federal Funds. Each Fund reserves the right to reject
a written or telephone redemption request or delay payment of redemption
proceeds if there has been a recent change to the shareholder's address of
record.

There is no front-end sales charge or fee for exchanges made between
shares of funds which both carry a front-end sales charge. Any applicable
front-end sales charge will apply to exchanges from shares of funds not subject
to a front-end sales charge, except for exchanges involving assets that were
previously invested in a fund with a front-end sales charge and/or exchanges
involving the reinvestment of dividends.

Holders of Class B Shares or Class C Shares that exchange their shares
("Original Shares") for shares of other funds in the Delaware Group (in each
case, "New Shares") in a permitted exchange, will not be subject to a CDSC that
might otherwise be due upon redemption of the Original Shares. However, such
shareholders will continue to be subject to the CDSC and, in the case of Class B
Shares, the automatic conversion schedule of the Original Shares as described in
this Prospectus and any CDSC assessed upon redemption will be charged by the
fund from which the Original Shares were exchanged. In an exchange of Class B
Shares from a Fund, the Fund's CDSC schedule may be higher than the CDSC
schedule relating to the New Shares acquired as a result of the exchange. For
purposes of computing the CDSC that may be payable upon a disposition of the New
Shares, the period of time that an investor held the Original Shares is added to
the period of time that an investor held the New Shares. With respect to Class B
Shares, the automatic conversion schedule of the Original Shares may be longer
than that of the New Shares. Consequently, an investment in New Shares by
exchange may subject an investor to the higher 12b-1 fees applicable to Class B
Shares of a Fund for a longer period of time than if the investment in New
Shares were made directly.

Various redemption and exchange methods are outlined below. Except for
the CDSC applicable to certain redemptions of Class B and Class C Shares and the
Limited CDSC applicable to certain redemptions of Class A Shares purchased at
net asset value, there is no fee charged by the Fund or the Distributor for
redeeming or exchanging your shares, but such fees could be charged in the
future. You may have your investment dealer arrange to have your shares redeemed
or exchanged. Your investment dealer may charge for this service.

All authorizations given by shareholders, including selection of any of
the features described below, shall continue in effect until such time as a
written revocation or modification has been received by a Fund or its agent.

Written Redemption
You can write to each Fund at 1818 Market Street, Philadelphia, PA
19103 to redeem some or all of your shares. The request must be signed by all
owners of the account or your investment dealer of record. For redemptions of
more than $50,000, or when the proceeds are not sent to the shareholder(s) at
the address of record, the Funds require a signature by all owners of the
account and a signature guarantee for each owner. Each signature guarantee must
be supplied by an eligible guarantor institution. Each Fund reserves the right
to reject a signature guarantee supplied by an eligible institution based on its
creditworthiness. The Funds may require further documentation from corporations,
executors, retirement

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plans, administrators, trustees or guardians.

Payment is normally mailed the next business day after receipt of your
redemption request. If your Class A Shares are in certificate form, the
certificate(s) must accompany your request and also be in good order.
Certificates are issued for Class A Shares only if a shareholder submits a
specific request. Certificates are not issued for Class B Shares or Class C
Shares.

Written Exchange
You may also write to each Fund (at 1818 Market Street, Philadelphia,
PA 19103) to request an exchange of any or all of your shares into another
mutual fund in the Delaware Group, subject to the same conditions and
limitations as other exchanges noted above.

Telephone Redemption and Exchange
To get the added convenience of the telephone redemption and exchange
methods, you must have the Transfer Agent hold your shares (without charge) for
you. If you choose to have your Class A Shares in certificate form, you may
redeem or exchange only by written request and you must return your
certificates.

The Telephone Redemption - Check to Your Address of Record service and
the Telephone Exchange service, both of which are described below, are
automatically provided unless you notify the Fund in which you have your account
in writing that you do not wish to have such services available with respect to
your account. Each Fund reserves the right to modify, terminate or suspend these
procedures upon 60 days' written notice to shareholders. It may be difficult to
reach the Funds by telephone during periods when market or economic conditions
lead to an unusually large volume of telephone requests.

Neither the Funds nor their Transfer Agent is responsible for any
shareholder loss incurred in acting upon written or telephone instructions for
redemption or exchange of Fund shares which are reasonably believed to be
genuine. With respect to such telephone transactions, each Fund will follow
reasonable procedures to confirm that instructions communicated by telephone are
genuine (including verification of a form of personal identification) as, if it
does not, such Fund or the Transfer Agent may be liable for any losses due to
unauthorized or fraudulent transactions. Instructions received by telephone are
generally tape recorded, and a written confirmation will be provided for all
purchase, exchange and redemption transactions initiated by telephone. By
exchanging shares by telephone, you are acknowledging prior receipt of a
prospectus for the fund into which your shares are being exchanged.

Telephone Redemption--Check to Your Address of Record
The Telephone Redemption feature is a quick and easy method to redeem
shares. You or your investment dealer of record can have redemption proceeds of
$50,000 or less mailed to you at your address of record. Checks will be payable
to the shareholder(s) of record. Payment is normally mailed the next business
day after receipt of the redemption request. This service is only available to
individual, joint and individual fiduciary-type accounts.

Telephone Redemption--Proceeds to Your Bank
Redemption proceeds of $1,000 or more can be transferred to your
predesignated bank account by

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wire or by check. You should authorize this service when you open your account.
If you change your predesignated bank account, you must complete an
Authorization Form and have your signature guaranteed. For your protection, your
authorization must be on file. If you request a wire, your funds will normally
be sent the next business day. CoreStates Bank, N.A.'s fee (currently $7.50)
will be deducted from your redemption proceeds. If you ask for a check, it will
normally be mailed the next business day after receipt of your redemption
request to your predesignated bank account. There are no separate fees for this
redemption method, but the mail time may delay getting funds into your bank
account. Simply call the Shareholder Service Center prior to the time the
offering price and net asset value are determined, as noted above.

MoneyLine (sm) On Demand
Through the MoneyLine (sm) On Demand service, you or your investment
dealer may call the Fund to request a transfer of funds from your Fund account
to your predesignated bank account. See MoneyLine (sm) Services under The
Delaware Difference for additional information about this service.

Telephone Exchange
The Telephone Exchange feature is a convenient and efficient way to
adjust your investment holdings as your liquidity requirements and investment
objectives change. You or your investment dealer of record can exchange your
shares into other funds in the Delaware Group under the same registration,
subject to the same conditions and limitations as other exchanges noted above.
As with the written exchange service, telephone exchanges are subject to the
requirements of each fund, as described above. Telephone exchanges may be
subject to limitations as to amounts or frequency.

Systematic Withdrawal Plans

1. Regular Plans
This plan provides shareholders with a consistent monthly (or
quarterly) payment. This is particularly useful to shareholders living on fixed
incomes, since it can provide them with a stable supplemental amount. With
accounts of at least $5,000, you may elect monthly withdrawals of $25 (quarterly
$75) or more. The Funds do not recommend any particular monthly amount, as each
shareholder's situation and needs vary. Payments are normally made by check. In
the alternative, you may elect to have your payments transferred from your Fund
account to your predesignated bank account through the MoneyLine (sm) Direct
Deposit Service. Your funds will normally be credited to your bank account up to
four business days after the payment date. There are no separate fees for this
redemption method. See MoneyLine (sm) Services under The Delaware Difference for
more information about this service.

2. Retirement Plans
For shareholders eligible under the applicable retirement plan to
receive benefits in periodic payments, the Systematic Withdrawal Plan provides
you with maximum flexibility. A number of formulas are available for calculating
your withdrawals depending upon whether the distributions are required or
optional. Withdrawals must be for $25 or more; however, no minimum account
balance is required. The MoneyLine (sm) Direct Deposit Service described above
is not available for certain retirement plans.

* * *

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Shareholders should not purchase additional shares while participating
in a Systematic Withdrawal Plan.

Redemptions of Class A Shares via a Systematic Withdrawal Plan may be
subject to a Limited CDSC if the original purchase was made at net asset value
within the 12 months prior to the withdrawal and a dealer's commission was paid
on that purchase. See Contingent Deferred Sales Charge for Certain Redemptions
of Class A Shares Purchased at Net Asset Value, below.

The applicable CDSC for Class B Shares and Class C Shares redeemed via
a Systematic Withdrawal Plan will be waived if, on the date that the Plan is
established, the annual amount selected to be withdrawn is less than 12% of the
account balance. If the annual amount selected to be withdrawn exceeds 12% of
the account balance on the date that the Systematic Withdrawal Plan is
established, all redemptions under the Plan will be subject to the applicable
CDSC. Whether a waiver of the CDSC is available or not, the first shares to be
redeemed for each Systematic Withdrawal Plan payment will be those not subject
to a CDSC because they have either satisfied the required holding period or were
acquired through the reinvestment of distributions. The 12% annual limit will be
reset on the date that any Systematic Withdrawal Plan is modified (for example,
a change in the amount selected to be withdrawn or the frequency or date of
withdrawals), based on the balance in the account on that date. See Waiver of
Contingent Deferred Sales Charge - Class B and Class C Shares, below.

For more information on Systematic Withdrawal Plans, call the
Shareholder Service Center.

Contingent Deferred Sales Charge for Certain Redemptions of Class A Shares
Purchased at Net Asset Value
A Limited CDSC will be imposed on certain redemptions of Class A Shares
(or shares into which such Class A Shares are exchanged) made within 12 months
of purchase, if such purchases were made at net asset value and triggered the
payment by the Distributor of the dealer's commission previously described. See
Classes of Shares.

The Limited CDSC will be paid to the Distributor and will be equal to
the lesser of 1% of: (1) the net asset value at the time of purchase of the
Class A Shares being redeemed; or (2) the net asset value of such Class A Shares
at the time of redemption. For purposes of this formula, the "net asset value at
the time of purchase" will be the net asset value at purchase of the Class A
Shares even if those shares are later exchanged for shares of another Delaware
Group fund and, in the event of an exchange of Class A Shares, the "net asset
value of such shares at the time of redemption" will be the net asset value of
the shares acquired in the exchange.

Redemptions of such Class A Shares held for more than 12 months will
not be subjected to the Limited CDSC and an exchange of such Class A Shares into
another Delaware Group fund will not trigger the imposition of the Limited CDSC
at the time of such exchange. The period a shareholder owns shares into which
Class A Shares are exchanged will count towards satisfying the 12-month holding
period. The Limited CDSC is assessed if such 12-month period is not satisfied
irrespective of whether the redemption triggering its payment is of the Class A
Shares of a Fund or the Class A Shares acquired in the exchange.

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In determining whether a Limited CDSC is payable, it will be assumed
that shares not subject to the Limited CDSC are the first redeemed followed by
other shares held for the longest period of time. The Limited CDSC will not be
imposed upon shares representing reinvested dividends or capital gains
distributions, or upon amounts representing share appreciation. All investments
made during a calendar month, regardless of what day of the month the investment
occurred, will age one month on the last day of that month and each subsequent
month.

Waiver of Limited Contingent Deferred Sales Charge - Class A Shares
The Limited CDSC for Class A Shares on which a dealer's commission has
been paid will be waived in the following instances: (i) redemptions that result
from a Fund's right to liquidate a shareholder's account if the aggregate net
asset value of the shares held in the account is less than the then-effective
minimum account size; (ii) distributions to participants from a retirement plan
qualified under section 401(a) or 401(k) of the Internal Revenue Code of 1986,
as amended (the "Code"), or due to death of a participant in such a plan; (iii)
redemptions pursuant to the direction of a participant or beneficiary of a
retirement plan qualified under section 401(a) or 401(k) of the Code with
respect to that retirement plan; (iv) periodic distributions from an IRA,
SIMPLE IRA or 403(b)(7) or 457 Deferred Compensation Plan due to death,
disability, or attainment of age 59 1/2 and IRA distributions qualifying under
Section 72(t) of the Internal Revenue Code; (v) returns of excess contributions
to an IRA; (vi) distributions by other employee benefit plans to pay benefits;
(vii) distributions described in (ii), (iv), and (vi) above pursuant to a
Systematic Withdrawal Plan; and (viii) redemptions by the classes of
shareholders who are permitted to purchase shares at net asset value, regardless
of the size of the purchase (see Buying Class A Shares at Net Asset Value under
Classes of Shares).

Waiver of Contingent Deferred Sales Charge - Class B and Class C Shares
The CDSC is waived on certain redemptions of Class B Shares in
connection with the following redemptions: (i) redemptions that result from a
Fund's right to liquidate a shareholder's account if the aggregate net asset
value of the shares held in the account is less than the then-effective minimum
account size; (ii) returns of excess contributions to an IRA, SIMPLE IRA,
SEP/IRA or 403(b)(7) or 457 Deferred Compensation Plan; (iii) periodic
distributions from an IRA, SIMPLE IRA, SAR/SEP, SEP/IRA, 403(b)(7) or 457
Deferred Compensation Plan and IRA distributions qualifying under Section 72(t)
of the Internal Revenue Code; and (iv) distributions from an account if the
redemption results from the death of all registered owners of the account (in
the case of accounts established under the Uniform Gifts to Minors or Uniform
Transfers to Minors Acts or trust accounts, the waiver applies upon the death of
all beneficial owners) or a total and permanent disability (as defined in
Section 72 of the Code) of all registered owners occurring after the purchase of
the shares being redeemed.

The CDSC on Class C Shares is waived in connection with the following
redemptions: (i) redemptions that result from a Fund's right to liquidate a
shareholder's account if the aggregate net asset value of the shares held in the
account is less than the then-effective minimum account size; (ii) returns of
excess contributions to an IRA, SIMPLE IRA, 403(b)(7) or 457 Deferred
Compensation Plan, Profit Sharing Plan, Money Purchase Pension Plan or 401(k)
Defined Contribution Plan; (iii) periodic distributions from a 403(b)(7) or
457 Deferred Compensation Plan upon attainment of age 59 1/2, Profit Sharing
Plan, Money Purchase Pension Plan, 401(k) Defined Contribution Plans upon
attainment of age 70 1/2, and IRA distributions qualifying under Section 72(t)
of the Internal Revenue Code; (iv)

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distributions from a 403(b)(7) Deferred Compensation Plan, 457 Deferred
Compensation Plan, Profit Sharing Plan, or 401(k) Defined Contribution Plan,
under hardship provisions of the plan; (v) distributions from a 403(b)(7)
Deferred Compensation Plan, 457 Deferred Compensation Plan, Profit Sharing Plan,
Money Purchase Pension Plan or a 401(k) Defined Contribution Plan upon
attainment of normal retirement age under the plan or upon separation from
service; (vi) periodic distributions from an IRA or SIMPLE IRA on or after
attainment of age 59; and (vii) distributions from an account if the redemption
results from the death of all registered owners of the account (in the case of
accounts established under the Uniform Gifts to Minors or Uniform Transfers to
Minors Acts or trust accounts, the waiver applies upon the death of all
beneficial owners) or a total and permanent disability (as defined in Section 72
of the Code) of all registered owners occurring after the purchase of the shares
being redeemed.

In addition, the CDSC will be waived on Class B and Class C Shares
redeemed in accordance with a Systematic Withdrawal Plan if the annual amount
selected to be withdrawn under the Plan does not exceed 12% of the value of the
account on the date that the Systematic Withdrawal Plan was established or
modified.

DIVIDENDS AND DISTRIBUTIONS

Global Funds, Inc. declares a dividend on each Fund to all shareholders
of record of the Classes of that Fund at the time the offering price of shares
is determined. See Purchase Price and Effective Date under How to Buy Shares.
Thus, when redeeming shares, dividends continue to be credited up to and
including the date of redemption.

International Small Cap Fund and Emerging Markets Fund will normally
declare and make payments from net investment income on an annual basis and
Global Assets Fund will normally declare and make payments from net investment
income on an quarterly basis. Global Bond Fund will normally declare and make
payments from net investment income on a monthly basis. Payments from net
realized securities profits of a Fund, if any, will be made in the quarter
following the close of the fiscal year. Both dividends and distributions, if
any, are automatically reinvested in your account at net asset value.

In addition to the dividends from net investment income and
distributions from realized securities profits that a Fund may declare and make,
as noted above, in order to satisfy certain distribution requirements of the Tax
Reform Act of 1986, a Fund may declare special year-end dividend and capital
gains distributions during October, November or December to shareholders of
record on a date in such month. Such distributions, if received by shareholders
by January 31, are deemed to have been paid by the Funds and received by
shareholders on the earlier of the date paid or December 31 of the prior year.

Each Class of a Fund will share proportionately in the investment
income and expenses of that Fund, except that the per share dividends from net
investment income on Class A Shares, Class B Shares and Class C Shares will vary
due to the expenses under the 12b-1 Plan applicable to each Class. Generally,
the dividends per share on Class B Shares and Class C Shares can be expected to
be lower than the dividends per share on Class A Shares because the expenses
under the 12b-1 Plans relating to Class B Shares and Class C Shares will be
higher than the expenses under the 12b-1 Plan relating to Class A Shares. See
Distribution (12b-1) and Service under Management of the Funds.

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(GLOBAL-ITF-ABC)

Both dividends and distributions, if any, are automatically reinvested
in your account at net asset value, unless you elect otherwise. See The Delaware
Difference for more information on reinvestment options. Payment by check of
cash dividends will ordinarily be mailed within three business days after the
payable date. Payments from net realized securities profits of a Fund, if any,
will be distributed annually in the quarter following the close of the fiscal
year.

Any check in payment of dividends or other distributions which cannot
be delivered by the United States Post Office or which remains uncashed for a
period of more than one year may be reinvested in your account at the
then-current net asset value and the dividend option may be changed from cash to
reinvest. If you elect to take your dividends and distributions in cash and such
dividends and distributions are in an amount of $25 or more, you may choose the
MoneyLine (sm) Direct Deposit Service and have such payments transferred from
your Fund account to your predesignated bank account. This service is not
available for certain retirement plans. See MoneyLine (sm) Services under The
Delaware Difference for more information about this service.

TAXES

The tax discussion set forth below is included for general information
only. Investors should consult their own tax advisers concerning the federal,
state, local or foreign tax consequences of an investment in a Fund.

Each Fund has qualified, and intends to continue to qualify, as a
regulated investment company under Subchapter M of the Code. As such, a Fund
will not be subject to federal income tax, or to any excise tax, to the extent
its earnings are distributed as provided in the Code.

Each Fund intends to distribute substantially all of its net investment
income and net capital gains, if any. Dividends from net investment income or
net short-term capital gains will be taxable to those investors who are subject
to income taxes as ordinary income, whether received in cash or in additional
shares. It is expected that either none or only a nominal portion of a Fund's
dividends will be eligible for the dividends-received deductions for
corporations. The portion of dividends paid by a Fund that so qualifies will be
designated each year in a notice from such Fund to that Fund's shareholders.

Distributions paid by a Fund from long-term capital gains, whether
received in cash or in additional shares, are taxable to those investors who are
subject to income taxes as long-term capital gains, regardless of the length of
time an investor has owned shares in that Fund. The Funds do not seek to realize
any particular amount of capital gains during a year; rather, realized gains are
a by-product of Fund management activities. Consequently, capital gains
distributions may be expected to vary considerably from year to year. Also, for
those investors subject to tax, if purchases of shares in a Fund are made
shortly before the record date for a dividend or capital gains distribution, a
portion of the investment will be returned as a taxable distribution.

Although dividends generally will be treated as distributed when paid,
dividends which are declared in October, November, or December to shareholders
of record in such a month, but which, for

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operational reasons, may not be paid to the shareholder until the following
January, will be treated for tax purposes as if paid by a Fund and received by
the shareholder on December 31 of the year declared.

The sale of shares of the Funds is a taxable event and may result in a
capital gain or loss to shareholders subject to tax. Capital gain or loss may be
realized from an ordinary redemption of shares or an exchange of shares between
the Funds and any other fund in the Delaware Group. Any loss incurred on a sale
or exchange of Fund shares that had been held for six months or less will be
treated as long-term capital loss to the extent of capital gains dividends
received with respect to such shares. All or a portion of the sales charge
incurred in acquiring a Fund's shares will be excluded from the federal tax
basis of any of such shares sold or exchanged within 90 days of their purchase
(for purposes of determining gain or loss upon sale of such shares) if the sale
proceeds are reinvested in such Fund or in another fund in the Delaware Group of
funds and a sales charge that would otherwise apply to the reinvestment is
reduced or eliminated. Any portion of such sales charge excluded from the tax
basis of the shares sold will be added to the tax basis of the shares acquired
in the reinvestment.

A Fund may be subject to foreign withholding taxes on income from
certain of its foreign securities. If more than 50% in value of the total assets
of a Fund at the end of its fiscal year are invested in securities of foreign
corporations, the Fund may elect to pass-through to its shareholders a pro-rata
share of foreign income taxes paid by the Fund. If this election is made,
shareholders will be (i) required to include in their gross income their
pro-rata share of foreign source income (including any foreign taxes paid by the
Fund), and (ii) entitled to either deduct (as an itemized deduction in the case
of individuals) their share of such foreign taxes in computing their taxable
income or to claim a credit for such taxes against their U.S. income tax,
subject to certain limitations under the Code. Shareholders will be informed by
a Fund at the end of each calendar year regarding the availability of any
credits on and the amount of foreign source income to be included in their
income tax returns.

The automatic conversion of Class B Shares into Class A Shares at the
end of approximately eight years after purchase will be tax-free for federal tax
purposes. See Automatic Conversion of Class B Shares under Classes of Shares.

In addition to federal taxes, shareholders may be subject to state and
local taxes on distributions. Distributions of interest income and capital gains
realized from certain types of U.S. government securities may be exempt from
state personal income taxes. Shares of each Fund are exempt from Pennsylvania
county personal property taxes.

Each year, Global Funds, Inc. will mail to you information on the tax
status of the dividends and distributions paid by the Fund in which you hold
shares. Shareholders will also receive each year information as to the portion
of dividend income, if any, that is derived from U.S. government securities that
are exempt from state income tax. Of course, shareholders who are not subject to
tax on their income would not be required to pay tax on amounts distributed to
them by a Fund.

Global Funds, Inc. is required to withhold 31% of taxable dividends,
capital gains distributions, and redemptions paid to shareholders who have not
complied with IRS taxpayer identification regulations. You may avoid this
withholding requirement by certifying on your Investment Application your proper

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Taxpayer Identification Number and by certifying that you are not subject to
backup withholding.

See Accounting and Tax Issues and Distributions and Taxes in Part B for
additional information on tax matters relating to each Fund and its
shareholders.

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(GLOBAL-ITF-ABC)

CALCULATION OF OFFERING PRICE AND NET ASSET VALUE PER SHARE

The net asset value ("NAV") per share is computed by adding the value
of all securities and other assets in a Fund's portfolio, deducting any
liabilities of that Fund (expenses and fees are accrued daily) and dividing by
the number of that Fund's shares outstanding. Portfolio securities for which
market quotations are available are priced at market value. Debt securities are
priced at fair value by an independent pricing service using methods approved by
Global Funds, Inc.'s Board of Directors. Short-term investments having a
maturity of less than 60 days are valued at amortized cost, which approximates
market value. All other securities are valued at their fair value as determined
in good faith and in a method approved by Global Funds, Inc.'s Board of
Directors.

Class A Shares are purchased at the offering price per share, while
Class B Shares and Class C Shares are purchased at the NAV per share. The
offering price per share of Class A Shares consists of the NAV per share next
computed after the order is received, plus any applicable front-end sales
charges.

The offering price and NAV are computed as of the close of regular
trading on the New York Stock Exchange (ordinarily, 4 p.m., Eastern time) on
days when the Exchange is open.

A Fund's portfolio securities, from time to time, may be listed
primarily on foreign exchanges which trade on days when the New York Stock
Exchange is closed (such as Saturday). As a result, the net asset value of a
Fund may be significantly affected by such trading on days when shareholders
have no access to the Fund.

The net asset values of all outstanding shares of each class of a Fund
will be computed on a pro-rata basis for each outstanding share based on the
proportionate participation in that Fund represented by the value of shares of
that class. All income earned and expenses incurred by a Fund will be borne on a
pro-rata basis by each outstanding share of a class, based on each class'
percentage in that Fund represented by the value of shares of such classes,
except that International Small Cap Fund Institutional Class, Global Bond Fund
Institutional Class, Global Assets Fund Institutional Class and Emerging
Markets Fund Institutional Class will not incur any of the expenses under Global
Funds, Inc.'s 12b-1 Plans, and Class A, Class B and Class C Shares of each Fund
alone will bear the 12b-1 Plan expenses payable under their respective Plans.
Due to the specific distribution expenses and other costs that will be allocable
to each class, the NAV of each class of a Fund will vary.

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(GLOBAL-ITF-ABC)

MANAGEMENT OF THE FUNDS

Directors
The business and affairs of Global Funds, Inc. are managed under the
direction of its Board of Directors. Part B contains additional information
regarding Global Funds, Inc.'s directors and officers.

Investment Manager and Sub-Adviser
Delaware International Advisers Ltd. ("Delaware International" or the
"Manager") furnishes investment management services to each Fund. Delaware
International is affiliated with Delaware Management Company, Inc. ("Delaware,"
or "Sub-Adviser"), which manages the U.S. securities portion of Global Assets
Fund. The Manager has offices located at Veritas House, 125 Finsbury Pavement,
London, England EC2A 1NQ.

Delaware and its predecessors have been managing the funds in the
Delaware Group since 1938. On April 30, 1997, Delaware and its affiliates,
including Delaware International, were managing in the aggregate more than $32
billion in assets in various institutional or separately managed (approximately
$20,677,606,000) and investment company (approximately $11,935,210,000)
accounts.

Delaware is an indirect, wholly owned subsidiary of Delaware Management
Holdings, Inc. ("DMH"). Delaware International is also controlled by DMH through
several subsidiaries. On April 3, 1995, a merger between DMH and a wholly owned
subsidiary of Lincoln National Corporation ("Lincoln National") was completed.
DMH, the Manager and Delaware are now indirect, wholly owned subsidiaries, and
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. In connection with the merger, new
Investment Management Agreements between Global Funds, Inc., on behalf of Global
Assets Fund and Global Bond Fund and the Manager, and a new Sub-Advisory
Agreement between the Manager on behalf of Global Assets Fund and the
Sub-Adviser, were executed following shareholder approval. The Manager has also
entered into Investment Management Agreements with Global Funds, Inc. on behalf
of International Small Cap Fund and Emerging Markets Fund.

The Manager manages each Fund's investments and for its services, the
Manager is paid an annual fee equal to 0.75% of a Fund's average daily net
assets in the case of Global Bond Fund and Global Assets Fund and 1.25% of the
average daily net assets of International Small Cap Fund and Emerging Markets
Fund.

Delaware International has elected voluntarily to waive that portion,
if any, of the annual management fees payable by International Small Cap Fund
and Emerging Markets Fund and to reimburse expenses to the extent necessary to
ensure that the Total Operating Expenses (exclusive of taxes, interest,
brokerage commissions and extraordinary expenses, but inclusive of 12b-1 fees)
of Class A Shares of these Funds do not exceed 2.00% and each of the Class B and
Class C shares of the Funds do not exceed 2.70%. This voluntary waiver,
originally in place through November 30, 1996 for Emerging Markets Fund, has
been extended through November 30, 1997, and will be in place for
International Small Cap Fund through December 31, 1997.

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(GLOBAL-ITF-ABC)

Delaware International has elected voluntarily to waive that portion,
if any, of the annual management fees payable by Global Bond Fund and Global
Assets Fund and to reimburse expenses to the extent necessary to ensure that the
Total Operating Expenses (exclusive of taxes, interest, brokerage commissions
and extraordinary expenses, but inclusive of 12b-1 fees) of each of the Class A
Shares of these Funds do not exceed 1.25% and of each of the Class B Shares and
Class C Shares of these Funds do not exceed 1.95% through November 30, 1996.
This voluntary waiver has been extended through November 30, 1997.

The investment management fees paid to Delaware International, while
higher than the advisory fees paid by other mutual funds in general, are
comparable to fees paid by other mutual funds with similar objectives and
policies.

With respect to Global Bond Fund, Global Assets Fund and Emerging
Markets Fund, the investment management fees earned for the fiscal year ended
November 30, 1996 were, respectively, 0.70%, 0.73% and 0.58% (annualized) of
average daily net assets and no fees were paid as a result of the voluntary
waivers. The fees earned for the Emerging Markets Fund were for the period June
10, 1996 (date of initial public offering) through November 30, 1996. No fees
were earned with respect to International Small Cap Fund, which has not
commenced investment operations.

Subject to the overall supervision of the Manager, the Sub-Adviser
manages the U.S. securities portion of Global Assets Fund's portfolio and
furnishes the Manager with investment recommendations, asset allocation advice,
research and other investment services with respect to U.S. securities. For the
services provided to the Manager, the Manager pays the Sub-Adviser a monthly fee
equal to 25% of the fee paid to the Manager under the terms of the Investment
Management Agreement.

Clive A. Gillmore has primary responsibility for making day-to-day
investment decisions for Global Assets Fund and Emerging Markets Fund. He has
been the senior portfolio manager for these Funds since their inception. A
graduate of the University of Warwick and having begun his career at Legal and
General Investment Management, Mr. Gillmore joined the Delaware Group in 1990
after eight years of investment experience. His most recent position prior to
joining the Delaware Group was as a Pacific Basin equity analyst and senior
portfolio manager for Hill Samuel Investment Advisers Ltd. Mr. Gillmore
completed the London Business School Investment program. Mr. Gillmore and
Timothy W. Sanderson have primary responsibility for making day-to-day
investment decisions for International Small Cap Fund and have co-managed the
Fund since its inception. A graduate of University College, Oxford, Mr.
Sanderson began his investment career in 1979 with Hill Samuel Investment
Management Group. Prior to joining Delaware International Advisers Ltd. in 1990
as Senior Portfolio Manager and Director, he was an analyst and senior portfolio
manager for Hill Samuel where, since 1987, he had responsibility for Pacific
Basin research and the management of international institutional portfolios.

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(GLOBAL-ITF-ABC)

graduate of the University of Warwick with a BS in management sciences. Before
joining the Delaware Group in 1990, he was Chief Investment Officer of Hill
Samuel Investment Advisers Ltd. He is a member of the Institute of Investment
Management & Research and the Operational Research Society. In addition to the
above team, Mr. Gillmore consults regularly with Robert Akester. Prior to
joining Delaware in 1996 as a Senior Portfolio Manager, Mr. Akester, who began
his investment career in 1969, was most recently a Director of Hill Samuel
Investment Advisers Ltd., which he joined in 1985. His prior experience included
working as a Senior Analyst and head of the South-East Asian Research team at
James Capel, and as a Fund Manager at Prudential Assurance Co., Ltd. Mr. Akester
holds a BS in Statistics and Economics from University College, London and is an
associate of the Institute of Actuaries, with a certificate in Finance and
Investment. In making investment decisions for International Small Cap Fund, Mr.
Gillmore and Mr. Sanderson regularly consult with Fiona A. Barwick. Ms. Barwick,
a portfolio manager, joined the Delaware Group in 1993 to cover the Pacific
Basin markets. Prior to this, she spent three years at Touche Remnant & Co. in
London as an assistant portfolio manager and research analyst. She is a graduate
of University College,London.

George H. Burwell has responsibility for making investment decisions
for the U.S. equity portion of Global Assets Fund and has had such
responsibility for the Fund since its inception. Mr. Burwell holds a BA from the
University of Virginia. Prior to joining the Delaware Group in 1992, Mr. Burwell
was a portfolio manager for Midlantic Bank in Edison, New Jersey, where he
managed an equity mutual fund and three commingled funds. Mr. Burwell is a CFA
charterholder.

In making investment decisions for this Fund, Mr. Burwell regularly
consults with Wayne A. Stork and Richard G. Unruh, Jr. Mr. Stork is Chairman of
the Board and Director of Delaware, the Manager and Global Funds, Inc. He is a
graduate of Brown University and attended New York University's Graduate School
of Business Administration. Mr. Stork joined the Delaware Group in 1962 and has
served in various executive capacities at different times within the Delaware
organization. A graduate of Brown University, Mr. Unruh received his MBA from
the University of Pennsylvania's Wharton School and joined the Delaware Group in
1982 after 19 years of investment management experience with Kidder, Peabody &
Co. Inc. Mr. Unruh was named an Executive Vice President of Global Funds, Inc.
in 1994. He is also a member of the Board of Directors of Delaware and the
Manager and was named an Executive Vice President of Delaware in 1994.

Paul A. Matlack and Gerald T. Nichols have responsibility for making
investment decisions for the high-yield securities portion of Global Assets
Fund. They have had such responsibility since this Fund's inception. Mr. Matlack
is a CFA charterholder and a graduate of the University of Pennsylvania with an
MBA in Finance from George Washington University. He began his career at Mellon
Bank as a credit specialist, and later served as a corporate loan officer for
Mellon Bank and then Provident National Bank. Mr. Nichols is a graduate of the
University of Kansas, where he received a BS in Business Administration and an
MS in Finance. Prior to joining the Delaware Group, he was a high yield credit
analyst at Waddell & Reed, Inc. and subsequently the investment officer for a
private merchant banking firm. He is a CFA charterholder.

In making investment decisions for this Fund, Mr. Matlack and Mr.
Nichols regularly consult with Paul E. Suckow. Mr. Suckow is Delaware's Chief
Investment Officer for Fixed-Income. He is a CFA

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(GLOBAL-ITF-ABC)

charterholder and a graduate of Bradley University with an MBA from Western
Illinois University. Mr. Suckow was a fixed-income portfolio manager at the
Delaware Group from 1981 to 1985. He returned to the Delaware Group in 1993
after eight years with Oppenheimer Management Corporation, where he served as
Executive Vice President and Director of Fixed Income.

Ian G. Sims and Christopher A. Moth have primary responsibility for
making day-to-day investment decisions for Global Bond Fund. Mr. Sims has been
the senior portfolio manager for this Fund since its inception. Mr. Sims is a
graduate of the University of Newcastle-Upon-Tyne. He joined Delaware
International in 1990 as a senior international fixed-income and currency
manager. Mr. Sims began his investment career with the Standard Life Assurance
Co., and subsequently moved to the Royal Bank of Canada Investment Management
International Company, where he was an international fixed-income manager. Prior
to joining Delaware International, he was a senior fixed-income and currency
portfolio manager with Hill Samuel Investment Advisers Ltd. Mr. Moth became
Co-Manager of this Fund in January 1997. Mr. Moth is a graduate of The City
University London. Mr. Moth joined Delaware in 1992. He previously worked at the
Guardian Royal Exchange in an actuarial capacity where he was responsible for
technical analysis, quantitative models and projections. Mr. Moth has been
awarded the certificate in Finance and Investment from the Institute of
Actuaries in London.

In making investment decisions for Global Bond Fund, Mr. Sims and Mr.
Moth regularly consult with Hywel Morgan. Mr. Morgan was educated at the
University of Wales and was subsequently an Economics Lecturer at Dundee
University. Prior to joining Delaware International, he was Associate Director
of the international fixed-income department and head of the credit review
committee at Hill Samuel Investment Management responsible for over $500 million
in multi-currency fixed interest accounts. His prior experience included working
as an economic adviser for Credit Suisse and the Economic Intelligence Unit. Mr.
Morgan started his business career as a Corporate Economist & Strategist at Ford
of Europe and Esso Petroleum.

Portfolio Trading Practices
Each Fund normally will not invest for short-term trading purposes.
However, each Fund may sell securities without regard to the length of time they
have been held. The degree of portfolio activity will affect brokerage costs of
each Fund and may affect taxes payable by such Fund's shareholders to the extent
that net capital gains are realized. Given each Fund's investment objective, it
is anticipated that the portfolio turnover rate of each Fund will not exceed
100%. During the past two fiscal years, the portfolio turnover rates for each
Fund (except International Small Cap Fund, which is new) were as follows:

November 30
1996 1995
------ ------
Global Bond Fund 42% 98%*
Global Assets Fund 34% 57%*
Emerging Markets Fund 36%* N/A

- -----------------
* Annualized.

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(GLOBAL-ITF-ABC)

The Manager and the Sub-Adviser use their best efforts to obtain the
best available price and most favorable execution for portfolio transactions.
Orders may be placed with brokers or dealers who provide brokerage and research
services to the Manager and the Sub-Adviser or their advisory clients. These
services may be used by the Manager and the Sub-Adviser in servicing any of
their respective accounts. Subject to best price and execution, the Manager and
the Sub-Adviser may consider a broker/dealer's sales of shares of funds in the
Delaware Group of funds in placing portfolio orders and may place orders with
broker/dealers that have agreed to defray certain expenses of such funds, such
as custodian fees.

Performance Information
From time to time, each Fund may quote total return performance of its
Classes in advertising and other types of literature. Global Bond Fund may also
quote the yield of its Classes in advertising and sales literature.

The current yield for each Class of Global Bond Fund will be calculated
by dividing the annualized net investment income earned by the Class during a
recent 30-day period by the maximum offering price per share on the last day of
the period. The yield formula provides for semi-annual compounding which assumes
that net investment income is earned and reinvested at a constant rate and
annualized at the end of a six-month period.

Total return will be based on a hypothetical $1,000 investment,
reflecting the reinvestment of all distributions at net asset value and: (i) in
the case of Class A Shares, the impact of the maximum front-end sales charge at
the beginning of each specified period; and (ii) in the case of Class B Shares
and Class C Shares, the deduction of any applicable CDSC at the end of the
relevant period. Each presentation will include the average annual total return
for one-, five- and ten-year or life of fund periods, as relevant. Each Fund may
also advertise aggregate and average total return information concerning a Class
over additional periods of time. In addition, each Fund may present total return
information that does not reflect the deduction of the maximum front-end sales
charge or any applicable CDSC. In this case, such total return information would
be more favorable than total return information that includes deductions of the
maximum front-end sales charge or any applicable CDSC.

Because securities prices fluctuate, investment results of the Classes
will fluctuate over time. Past performance is not considered a guarantee of
future results.

Distribution (12b-1) and Service
The Distributor, Delaware Distributors, L.P., serves as the national
distributor for each Fund's shares under separate Distribution Agreements dated
April 3, 1995, as amended on November 29, 1995. Delaware Distributors L.P.
serves as the national distributor of Emerging Markets Fund's shares and
International Small Cap Fund's shares under Distribution Agreements with
Global Funds, Inc. dated May 1, 1996 and July 21, 1997, respectively.

Global Funds, Inc. has adopted a separate distribution plan under Rule
12b-1 for each of the Class A Shares, Class B Shares and Class C Shares of the
Funds (the "Plans"). Each Plan permits a Fund to which the Plan relates to pay
the Distributor from the assets of its respective Classes a monthly fee for the
Distributor's services and expenses in distributing and promoting sales of
shares.

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(GLOBAL-ITF-ABC)

These expenses include, among other things, preparing and distributing
advertisements, sales literature, and prospectuses and reports used for sales
purposes, compensating sales and marketing personnel, holding special promotions
for specified periods of time, and paying distribution and maintenance fees to
brokers, dealers and others. In connection with the promotion of shares of the
Classes, the Distributor may, from time to time, pay to participate in
dealer-sponsored seminars and conferences, and reimburse dealers for expenses
incurred in connection with preapproved seminars, conferences and advertising.
The Distributor may pay or allow additional promotional incentives to dealers as
part of preapproved sales contests and/or to dealers who provide extra training
and information concerning a Class and increase sales of the Class. In addition,
each Fund may make payments from the 12b-1 Plan fees of its respective Classes
directly to others, such as banks, who aid in the distribution of Class shares
or provide services in respect of such Classes, pursuant to service agreements
with Global Funds, Inc.

The 12b-1 Plan expenses relating to each of the Class B Shares and
Class C Shares of the Funds are also used to pay the Distributor for advancing
the commission costs to dealers with respect to the initial sale of such shares.

The aggregate fees paid by a Fund from the assets of the respective
Classes to the Distributor and others under the Plans may not exceed (i) 0.30%
of a Class A Shares' average daily net assets in any year, and (ii) 1% (0.25% of
which are service fees to be paid by the Fund to the Distributor, dealers and
others, for providing personal service and/or maintaining shareholder accounts)
of each Fund's Class B Shares' and Class C Shares' average daily net assets in
any year. The Funds' Class A, Class B and Class C Shares will not incur any
distribution expenses beyond these limits, which may not be increased without
shareholder approval.

While payments pursuant to the Plans may not exceed 0.30% annually with
respect to each Fund's Class A Shares, and 1% annually with respect to each
Fund's Class B Shares and Class C Shares, the Plans do not limit fees to amounts
actually expended by the Distributor. It is therefore possible that the
Distributor may realize a profit in any particular year. However, the
Distributor currently expects that its distribution expenses will likely equal
or exceed payments to it under the Plans. The Distributor may, however, incur
such additional expenses and make additional payments to dealers from its own
resources to promote the distribution of shares of the Classes. The monthly fees
paid to the Distributor under the Plans are subject to the review and approval
of Global Funds, Inc.'s unaffiliated directors, who may reduce the fees or
terminate the Plans at any time.

The Plans do not apply to the Institutional Class of shares of any
Fund. Those shares are not included in calculating the Plans' fees, and the
Plans are not used to assist in the distribution and marketing of the shares of
the Institutional Class of any Fund.

The Transfer Agent, Delaware Service Company, Inc., serves as the
shareholder servicing, dividend disbursing and transfer agent for each Fund
under a Shareholders Services Agreement. The Transfer Agent also provides
accounting services to the Funds pursuant to the terms of a separate Fund
Accounting Agreement. The directors annually review service fees paid to the
Transfer Agent.

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(GLOBAL-ITF-ABC)

The Distributor and the Transfer Agent are also indirect, wholly owned
subsidiaries of DMH.

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(GLOBAL-ITF-ABC)

Class A Shares Class B Shares Class C Shares
---------------- ---------------- ----------------
Global Bond Fund 1.25% 1.95% 1.95%
Global Assets Fund 1.25% 1.95% 1.95%

The ratios of operating expenses to average daily net assets for Class
A Shares, Class B Shares and Class C Shares of International Small Cap Fund
and Emerging Markets Fund are expected to be as follows:

Class A Shares Class B Shares Class C Shares
--------------- ---------------- ---------------
International Small Cap Fund 2.00% 2.70% 2.70%
Emerging Markets Fund 2.00% 2.70% 2.70%

The ratios reflect the impact of each Class' 12b-1 Plan and the
voluntary waiver and payment of fees noted above.

Shares
Global Funds, Inc. is an open-end management investment company.
Commonly known as a mutual fund, Global Funds, Inc. was organized as a Maryland
corporation on May 30, 1991. Global Funds, Inc. currently offers six series of
shares - International Equity Series, International Small Cap Series, Global
Bond Series, Global Assets Series, Emerging Markets Series and Global Equity
Series. Fund shares have a par value of $.01 and when issued will be fully paid,
non-assessable, fully transferable and redeemable at the option of the holder.
The shares have no preference as to conversion, exchange, dividends, retirement
or other features and have no preemptive rights. Each Fund will vote separately
on any matter which affects only that Fund. Shares of each Fund have a priority
over shares of any other fund of Global Funds, Inc. in the assets and income of
that Fund.

Global Funds, Inc.'s shares have noncumulative voting rights which
means that the holders of more than 50% of Global Funds, Inc.'s shares voting
for the election of directors can elect 100% of the directors if they choose to
do so. Under Maryland law, Global Funds, Inc. is not required, and does not
intend, to hold annual meetings of shareholders unless, under certain
circumstances, it is required to do so under the 1940 Act. Shareholders of 10%
or more of Global Funds, Inc.'s outstanding shares may request that a special
meeting be called to consider the removal of a director.

In addition to Class A Shares, Class B Shares and Class C Shares,
International Small Cap Fund, Global Bond Fund, Global Assets Fund and
Emerging Markets Fund offer International Small Cap Fund Institutional Class,
Global Bond Fund Institutional Class, Global Assets Fund Institutional Class and
Emerging Markets Fund Institutional Class, respectively. Shares of each Class
represent

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(GLOBAL-ITF-ABC)

proportionate interests in the assets of the respective Fund and have
the same voting and other rights and preferences as the other classes of that
Fund, except that shares of the Institutional Class of any Fund are not subject
to, and may not vote on matters affecting, the Distribution Plans under Rule
12b-1 relating to Class A, Class B and Class C Shares of that Fund. Similarly,
as a general matter, the shareholders of Class A Shares, Class B Shares and
Class C Shares may vote only on matters affecting the 12b-1 Plan that relates to
the class of shares that they hold. However, Class B Shares of a Fund may vote
on any proposal to increase materially the fees to be paid by that Fund under
the 12b-1 Plan relating to Class A Shares.

It is expected that Lincoln National Corporation Employees' Retirement
Trust (the "Trust") will make an initial investment in International Small Cap
Fund, which could result in the Trust holding up to 100% of the outstanding
shares of this Fund. Subject to certain limited exceptions, there would be no
limitation on the Trust's ability to redeem its shares of this Fund and it may
elect to do so at any time.

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OTHER INVESTMENT POLICIES AND RISK CONSIDERATIONS

Repurchase Agreements
Each Fund also may use repurchase agreements that are at least 100%
collateralized by securities in which the Fund can invest directly, including
securities issued or guaranteed by the U.S. Government or its agencies or
instrumentalities. Repurchase agreements help a Fund to invest cash on a
temporary basis. A Fund may invest cash balances in joint repurchase agreements
with other Delaware Group funds. Under a repurchase agreement, a Fund acquires
ownership and possession of a security, and the seller agrees to buy the
security back at a specified time and higher price. Repurchase agreements
involve the risks of loss if a seller defaults on its obligations under the
agreements. If the seller is unable to repurchase the security, the Fund could
experience delays in liquidating the securities. To minimize this possibility,
the Manager, pursuant to direction from the Global Funds, Inc.'s Board of
Directors, considers the creditworthiness of banks and dealers when entering
into repurchase agreements.

Portfolio Loan Transactions
Each Fund may loan up to 25% of its assets to qualified broker/dealers
or institutional investors for their use relating to short sales or other
security transactions.

The major risk to which a Fund would be exposed on a loan transaction
is the risk that the borrower would go bankrupt at a time when the value of the
security goes up, and the borrower would fail to return the borrowed security.
Therefore, each Fund will only enter into loan arrangements after a review of
all pertinent facts by the Manager, subject to overall supervision by the Board
of Directors, including the creditworthiness of the borrowing broker, dealer or
institution and then only if the consideration to be received from such loans
would justify the risk. In addition, a Fund will require borrowers to deliver
collateral to the Fund before lending securities. Creditworthiness will be
monitored on an ongoing basis by the Manager.

Borrowings
Each Fund may borrow money as a temporary measure for extraordinary
purposes or to facilitate redemptions. A Fund will not borrow money in excess of
one-third of the value of its net assets. A Fund has no intention of increasing
its net income through borrowing. Any borrowing will be done from a bank and, to
the extent that such borrowing exceeds 5% of the value of the Fund's net assets,
asset coverage of at least 300% is required. In the event that such asset
coverage shall at any time fall below 300%, a Fund shall, within three days
thereafter (not including Sunday or holidays) or such longer period as the U.S.
Securities and Exchange Commission may prescribe by rules and regulations,
reduce the amount of its borrowings to such an extent that the asset coverage of
such borrowings shall be at least 300%. A Fund will not pledge more than 10% of
its net assets, or issue senior securities as defined in the 1940 Act, except
for notes to banks. Investment securities will not be purchased while a Fund has
an outstanding borrowing.

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(GLOBAL-ITF-ABC)

Assets Funds, and 15% for International Small Cap and Emerging Markets Funds).
The Board has instructed the Manager to consider the following factors in
determining the liquidity of a Rule 144A Security: (i) the frequency of trades
and trading volume for the security; (ii) whether at least three dealers are
willing to purchase or sell the security and the number of potential purchasers;
(iii) whether at least two dealers are making a market in the security; and (iv)
the nature of the security and the nature of the marketplace trades (e.g., the
time needed to dispose of the security, the method of soliciting offers, and the
mechanics of transfer).

If the Manager determines that a Rule 144A Security which was
previously determined to be liquid is no longer liquid and, as a result, a
Fund's holdings of illiquid securities exceed a Fund's 15% limitation on
investments in such securities, the Manager will determine what action to take
to ensure that the Fund continues to adhere to its respective limitation.

Investment Company Securities
Any investments that the Funds make in either closed-end or open-end
investment companies will be limited by the 1940 Act, and would involve an
indirect payment of a portion of the expenses, including advisory fees, of such
other investment companies. Under the 1940 Act's limitations, a Fund may not (1)
own more than 3% of the voting stock of another investment company; (2) invest
more than 5% of the Fund's total assets in the shares of any one investment
company; nor (3) invest more than 10% of the Fund's total assets in shares of
other investment companies. These percentage limitations also apply to the
Funds' investments in unregistered investment companies.

Zero Coupon Securities
Global Bond Fund, Global Assets Fund and Emerging Markets Fund may also
invest in zero coupon bonds. The market prices of zero coupon securities are
generally more volatile than the market prices of securities that pay interest
periodically and are likely to respond to changes in interest rates to a greater
degree than do non-zero coupon securities having similar maturities and credit
quality. Current federal income tax law requires that a holder of a taxable zero
coupon security report as income each year the portion of the original issue
discount of such security that accrues that year, even though the holder
receives no cash payments of interest during the year. The Fund has qualified as
a regulated investment company under the Code. Accordingly, during periods when
a Fund receives no interest payments on its zero coupon securities, it will be
required, in order to maintain its desired tax treatment, to distribute cash
approximating the income attributable to such securities. Such distribution may
require the sale of portfolio securities to meet the distribution requirements
and such sales may be subject to the risk factor discussed above.

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(GLOBAL-ITF-ABC)

forward contract involves an obligation to purchase or sell a specific currency
at a future date, which may be any fixed number of days from the date of the
contract, agreed upon by the parties, at a price set at the time of the
contract. The Funds will convert currency on a spot basis from time to time, and
investors should be aware of the costs of currency conversion.

A Fund may enter into forward contracts to "lock in" the price of a
security it has agreed to purchase or sell, in terms of U.S. dollars or other
currencies in which the transaction will be consummated. By entering into a
forward contract for the purchase or sale, for a fixed amount of U.S. dollars or
foreign currency, of the amount of foreign currency involved in the underlying
security transaction, the Fund will be able to protect itself against a possible
loss resulting from an adverse change in currency exchange rates during the
period between the date the security is purchased or sold and the date on which
payment is made or received.

When the Manager believes that the currency of a particular country may
suffer a significant decline against the U.S. dollar or against another
currency, a Fund may enter into a forward foreign currency contract to sell, for
a fixed amount of U.S. dollars or other appropriate currency, the amount of
foreign currency approximating the value of some or all of the Fund's securities
denominated in such foreign currency.

A Fund will not enter into forward contracts or maintain a net exposure
to such contracts where the consummation of the contracts would obligate the
Fund to deliver an amount of foreign currency in excess of the value of the
Fund's securities or other assets denominated in that currency.

At the maturity of a forward contract, a Fund may either sell the
portfolio security and make delivery of the foreign currency, or it may retain
the security and terminate its contractual obligation to deliver the foreign
currency by purchasing an "offsetting" contract with the same currency trader
obligating it to purchase, on the same maturity date, the same amount of the
foreign currency. The Fund may realize a gain or loss from currency
transactions.

A Fund also may purchase and write put and call options on foreign
currencies (traded on U.S. and foreign exchanges or over-the-counter) for
hedging purposes to protect against declines in the U.S. dollar cost of foreign
securities held by the Fund and against increases in the U.S. dollar cost of
such securities to be acquired. Call options on foreign currency written by a
Fund will be covered, which means that the Fund will own the underlying foreign
currency. With respect to put options on foreign currency written by a Fund, the
Fund will establish a segregated account with its Custodian Bank consisting of
cash, U.S. government securities or other high-grade liquid debt securities in
an amount equal to the amount the Fund will be required to pay upon exercise of
the put.

As in the case of other kinds of options, the writing of an option on
foreign currency will constitute only a partial hedge, up to the amount of the
premium received, and a Fund could be required to purchase or sell foreign
currencies at disadvantageous exchange rates, thereby incurring losses. The
purchase of an option on foreign currency may constitute an effective hedge
against fluctuations in exchange rates, although, in the event of rate movements
adverse to a Fund's position, the Fund may forfeit the entire amount of the
premium plus related transaction costs. See Special Risk Considerations.

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(GLOBAL-ITF-ABC)

Options
The Manager may employ options techniques in an attempt to protect
appreciation attained and to take advantage of the liquidity available in the
options market. Each Fund may purchase call options on foreign or U.S.
securities and indices and enter into related closing transactions. A Fund may
also purchase put options on such securities and indices and enter into related
closing transactions.

A call option enables the purchaser, in return for the premium paid, to
purchase securities from the writer of the option at an agreed price up to an
agreed date. The advantage is that the purchaser may hedge against an increase
in the price of securities it ultimately wishes to buy or take advantage of a
rise in a particular index. A Fund will only purchase call options to the extent
that premiums paid on all outstanding call options do not exceed 2% of its total
assets.

A put option enables the purchaser of the option, in return for the
premium paid, to sell the security underlying the option to the writer at the
exercise price during the option period, and the writer of the option has the
obligation to purchase the security from the purchaser of the option. A Fund
will only purchase put options to the extent that the premiums on all
outstanding put options do not exceed 2% of its total assets. The advantage is
that the purchaser can be protected should the market value of the security
decline or should a particular index decline.

An option on a securities index gives the purchaser of the option, in
return for the premium paid, the right to receive from the seller cash equal to
the difference between the closing price of the index and the exercise price of
the option.

Closing transactions essentially let a Fund offset put options or call
options prior to exercise or expiration. If a Fund cannot effect closing
transactions, it may have to hold a security it would otherwise sell or deliver
a security it might want to hold.

In purchasing put and call options, the premium paid by a Fund plus any
transaction costs will reduce any benefit realized by the Fund upon exercise of
the option.

Each Fund may use both Exchange-traded and over-the-counter options.
Certain over-the-counter options may be illiquid. A Fund will only invest in
such options to the extent consistent with its 10% limitation (or, in the case
of the Emerging Markets Fund and the International Small Cap Fund, its 15%
limitation) on investment in illiquid securities. The Funds will comply with
U.S. Securities and Exchange Commission asset segregation and coverage
requirements when engaging in these types of transactions.

Futures Contracts and Options on Futures Contracts
The principal purpose of the purchase or sale of futures contracts for
a Fund is to protect the Fund against the fluctuations in interest or exchange
rates which otherwise might adversely affect the value of the Fund's portfolio
securities or adversely affect the prices of securities which the Fund intends
to purchase at a later date without actually buying or selling such securities.

Each Fund may enter into contracts for the purchase or sale for future
delivery of securities or

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(GLOBAL-ITF-ABC)

foreign currencies. A purchase of a futures contract means the acquisition of a
contractual right to obtain delivery to a Fund of the securities or foreign
currency called for by the contract at a specified price during a specified
future month. When a futures contract is sold, a Fund incurs a contractual
obligation to deliver the securities or foreign currency underlying the contract
at a specified price on a specified date during a specified future month. To the
extent that a Fund invests in futures contracts and options thereon for other
than bona fide hedging purposes, the Fund will not enter into such transactions
if, immediately thereafter, the sum of the amount of initial margin deposits and
premiums paid for open futures options would exceed 5% of the Fund's total
assets, after taking into account unrealized profits and unrealized losses on
such contracts it has entered into; provided, however, that, in the case of an
option that is in-the-money at the time of purchase, the in-the-money amount may
be excluded in calculating the 5%.

A Fund may also purchase and write options to buy or sell futures
contracts. Options on futures are similar to options on securities except that
options on futures give the purchaser the right, in return for the premium paid,
to assume a position in a futures contract, rather than actually to purchase or
sell the futures contract, at a specified exercise price at any time during the
period of the option. When a Fund enters into a futures transaction, it must
deliver to the futures commission merchant selected by the Fund an amount
referred to as "initial margin." This amount is maintained by the futures
commission merchant in an account at the Custodian Bank. Thereafter, a
"variation margin" may be paid by a Fund to, or drawn by the Fund from, such
account in accordance with controls set for such accounts, depending upon
changes in the price of the underlying securities subject to the futures
contract.

To the extent that interest or exchange rates or securities prices move
in an unexpected direction, a Fund may not achieve the anticipated benefits of
investing in futures contracts and options thereon, or may realize a loss. To
the extent that the Fund purchases an option on a futures contract and fails to
exercise the option prior to the exercise date, it will suffer a loss of the
premium paid. Further, the possible lack of a secondary market could prevent the
Fund from closing out its positions relating to futures.

Interest Rate Swaps
In order to attempt to protect Global Bond Fund's investments from
interest rate fluctuations, the Fund may engage in interest rate swaps. The Fund
intends to use interest rate swaps as a hedge and not as a speculative
investment. Interest rate swaps involve the exchange by the Fund with another
party of their respective rights to receive interest, e.g., an exchange of fixed
rate payments for floating rate payments. For example, if the Fund holds an
interest-paying security whose interest rate is reset once a year, it may swap
the right to receive interest at this fixed rate for the right to receive
interest at a rate that is reset daily. Such a swap position would offset
changes in the value of the underlying security because of subsequent changes in
interest rates. This would protect the Fund from a decline in the value of the
underlying security due to rising rates, but would also limit its ability to
benefit from falling interest rates.

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(GLOBAL-ITF-ABC)

not treat them as being subject to its borrowing restrictions. The net amount of
the excess, if any, of the Fund's obligations over its entitlement with respect
to each interest rate swap will be accrued on a daily basis and an amount of
cash or high-quality liquid securities having an aggregate net asset value at
least equal to the accrued excess will be maintained in a segregated account by
the Custodian Bank. If the Fund enters into an interest rate swap on other than
a net basis, the Fund would maintain a segregated account in the full amount
accrued on a daily basis of the Fund's obligations with respect to the swap.

The use of interest rate swaps by Global Bond Fund involves investment
techniques and risks different from those associated with ordinary portfolio
securities transactions. If the Manager is incorrect in its forecasts of market
values, interest rates and other applicable factors, the investment performance
of the Fund will be less favorable than it would have been if this investment
technique were never used. Interest rate swaps do not involve the delivery of
securities or other underlying assets or principal. Thus, if the other party to
an interest rate swap defaults, the Fund's risk of loss consists of the net
amount of interest payments that the Fund is contractually entitled to receive.

Diversification
While Global Bond, Global Assets and Emerging Markets Funds each intend
to seek to qualify as a "diversified" investment company under provisions of
Subchapter M of the Code, none of these Funds will be diversified under the 1940
Act. Thus, while at least 50% of each such Fund's total assets will be
represented by cash, cash items, and other securities limited in respect of any
one issuer to an amount not greater than 5% of the Fund's total assets, it will
not satisfy the 1940 Act requirement in this respect, which applies that test to
75% of the Fund's assets. A nondiversified portfolio is believed to be subject
to greater risk because adverse effects on the portfolio's security holdings may
affect a larger portion of the overall assets.

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(GLOBAL-ITF-ABC)

APPENDIX A
International Small Cap Fund, Global Assets Fund and Emerging Markets Fund
Illustrations of Hypothetical Returns on Investments Based on Purchase Option
$10,000 Purchase

Scenario 1 Scenario 2
No Redemption Redeem 1st Year
-------------------------------------- ------------------------------------
Year Class A Class B Class C Class A Class B Class C
---- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
0 9,525 10,000 10,000 9,525 10,000 10,000
1 10,478 10,930 10,930 10,478 10,530 10,830+
2 11,525 11,946 11,946
3 12,678 13,058 13,058
4 13,946 14,272 14,272
5 15,340 15,599 15,599
6 16,874 17,050 17,050
7 18,562 18,636 18,636
8 20,418+ 20,369 20,369
9 22,459 22,405* 22,263
10 24,705 24,646* 24,333

</TABLE>

Scenario 3 Scenario 4
Redeem 3rd Year Redeem 5th Year
------------------------------------ --------------------------------------
Year Class A Class B Class C Class A Class B Class C
- ---- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
0 9,525 10,000 10,000 9,525 10,000 10,000
1 10,478 10,930 10,930 10,478 10,930 10,930
2 11,525 11,946 11,946 11,525 11,946 11,946
3 12,678 12,758 13,058+ 12,678 13,058 13,058
4 13,946 14,272 14,272
5 15,340 15,399 15,599+
6
7
8
9
10

</TABLE>

*This assumes that Class B Shares were converted to Class A Shares at the end of
the eighth year.

<PAGE>
(GLOBAL-ITF-ABC)

$250,000 Purchase

Scenario 1 Scenario 2
No Redemption Redeem 1st Year
-------------------------------------- ------------------------------------
Year Class A Class B Class C Class A Class B Class C
---- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
0 243,750 250,000 250,000 243,750 250,000 250,000
1 268,125 273,250 273,250 268,125 263,250 270,750+
2 294,938 298,662 298,662
3 324,431 326,438 326,438
4 356,874+ 356,797 356,797
5 392,562 389,979 389,979
6 431,818 426,247 426,247
7 475,000 465,888 465,888
8 522,500 509,215 509,215
9 574,750 560,137* 556,572
10 632,225 616,150* 608,333

</TABLE>

Scenario 3 Scenario 4
Redeem 3rd Year Redeem 5th Year
------------------------------------ --------------------------------------
Year Class A Class B Class C Class A Class B Class C
- ---- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
0 243,750 250,000 250,000 243,750 250,000 250,000
1 268,125 273,250 273,250 268,125 273,250 273,250
2 294,938 298,662 298,662 294,938 298,662 298,662
3 324,431 318,938 326,438+ 324,431 326,438 326,438
4 356,874+ 356,797 356,797
5 392,562 384,979 389,979
6
7
8
9
10

</TABLE>

*This assumes that Class B Shares were converted to Class A Shares at the end of
the eighth year.
Assumes a hypothetical return for Class A of 10% per year, a hypothetical return
for Class B of 9.3% for years 1-8 and 10% for years 9-10, and a hypothetical
return for Class C of 9.3% per year. Hypothetical returns vary due to the
different expense structure for each Class and do not represent actual
performance.
Class A purchase subject to appropriate sales charge breakpoint (4.75% @
$10,000; 3.75% @ $100,000; 2.50% @ $250,000).
Class B purchase assessed appropriate CDSC upon redemption (4%-4%-3%-3%-2%-1% in
years 1-2-3-4-5-6).
Class C purchase assessed 1% CDSC upon redemption in year 1.
Figures marked "+" identify which Class offers the greater return potential
based on the investment amount, the holding period and the expense structure of
each Class.

<PAGE>

(GLOBAL-ITF-ABC)

Global Bond Fund
Illustrations of Hypothetical Returns on Investments Based on Purchase Option
$10,000 Purchase
<TABLE>
<CAPTION>

Scenario 1 Scenario 2
No Redemption Redeem 1st Year
-------------------------------------- ------------------------------------
Year Class A Class B Class C Class A Class B Class C
---- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
0 9,525 10,000 10,000 9,525 10,000 10,000
1 10,192 10,630 10,630 10,192 10,230 10,530+
2 10,905 11,300 11,300
3 11,669 12,012 12,012
4 12,485 12,768 12,768
5 13,359 13,573 13,573
6 14,294 14,428 14,428
7 15,295 15,337 15,337
8 16,366+ 16,303 16,303
9 17,511 17,444* 17,330
10 18,737 18,665* 18,422

</TABLE>

Scenario 3 Scenario 4
Redeem 3rd Year Redeem 5th Year
------------------------------------ ----------------------------------
Year Class A Class B Class C Class A Class B Class C
- ---- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
0 9,525 10,000 10,000 9,525 10,000 10,000
1 10,192 10,630 10,630 10,192 10,630 10,630
2 10,905 11,300 11,300 10,905 11,300 11,300
3 11,669 11,712 12,012+ 11,669 12,012 12,012
4 12,485 12,768 12,768
5 13,359 13,373 13,573+
6
7
8
9
10

</TABLE>

*This assumes that Class B Shares were converted to Class A Shares at the end
of the eighth year.

<PAGE>
(GLOBAL-ITF-ABC)

$250,000 Purchase
<TABLE>
<CAPTION>
Scenario 1 Scenario 2
No Redemption Redeem 1st Year
-------------------------------------- ------------------------------------
Year Class A Class B Class C Class A Class B Class C
---- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
0 243,750 250,000 250,000 243,750 250,000 250,000
1 260,813 265,750 265,750 260,813 255,750 263,250+
2 279,069 282,492 282,492
3 298,604 300,289 300,289
4 319,507+ 319,207 319,207
5 341,872 339,318 339,318
6 365,803 360,395 360,695
7 391,409 383,418 383,418
8 418,808 407,574 407,574
9 448,124 436,104* 433,251
10 479,493 466,631* 460,546

</TABLE>

Scenario 3 Scenario 4
Redeem 3rd Year Redeem 5th Year
------------------------------------ ----------------------------------
Year Class A Class B Class C Class A Class B Class C
- ---- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
0 243,750 250,000 250,000 243,750 250,000 250,000
1 260,813 265,750 265,750 260,813 265,750 265,750
2 279,069 282,492 282,492 279,069 282,492 282,492
3 298,604 292,789 300,289+ 298,604 300,289 300,289
4 319,507+ 319,207 319,207
5 341,872 334,318 339,318
6
7
8
9
10

</TABLE>

*This assumes that Class B Shares were converted to Class A Shares at the end of
the eighth year.
Assumes a hypothetical return for Class A of 7% per year, a hypothetical return
for Class B of 6.3% for years 1-8 and 7% for years 9-10, and a hypothetical
return for Class C of 6.3% per year. Hypothetical returns vary due to the
different expense structure for each Class and do not represent actual
performance.
Class A purchase subject to appropriate sales charge breakpoint (4.75% @
$10,000; 3.75% @ $100,000; 2.50% @ $250,000).
Class B purchase assessed appropriate CDSC upon redemption (4%-4%-3%-3%-2%-1% in
years 1-2-3-4-5-6).
Class C purchase assessed 1% CDSC upon redemption in year 1.
Figures marked "+" identify which Class offers the greater return potential
based on the investment amount, the holding period and the expense structure of
each Class.
<PAGE>

(GLOBAL-ITF-ABC)

APPENDIX B--CLASSES OFFERED

Growth of Capital A Class B Class C Class Consultant Class
Aggressive Growth Fund x x x -
Trend Fund x x x -
Enterprise Fund x x x -
DelCap Fund x x x -
Value Fund x x x -
U.S. Growth Fund x x x -
Growth Stock Fund x x x -
Tax-Efficient Equity Fund x x x -

Total Return
Blue Chip Fund x x x -
Quantum Fund x x x -
Devon Fund x x x -
Decatur Total Return Fund x x x -
Decatur Income Fund x x x -
Delaware Fund x x x -

International Diversification
Emerging Markets Fund x x x -
New Pacific Fund x x x -
World Growth Fund x x x -
International Equity Fund x x x -
Global Assets Fund x x x -
Global Bond Fund x x x -

Current Income
Delchester Fund x x x -
Strategic Income Fund x x x -
Corporate Income Fund x x x -
Federal Bond Fund x x x -
U.S. Government Fund x x x -
Delaware-Voyageur US Government
Securities Fund x x x -
Limited-Term Government Fund x x x -

(Not Part of Prospectus)

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<PAGE>

(GLOBAL-ITF-ABC)

APPENDIX B--CLASSES OFFERED - (CON'T)

Tax-Free Income A Class B Class C Class Consultant Class
<S> <C> <C> <C> <C>
National High Yield Municipal Bond Fund x x x -
Tax-Free USA Fund x x x -
Tax-Free Insured Fund x x x -
Tax-Free USA Intermediate Fund x x x -
Delaware-Voyageur Tax-Free Arizona Insured Fund x x x -
Delaware-Voyageur Tax-Free Arizona Fund x x x -
Delaware-Voyageur Tax-Free California Insured Fund x x x -
Delaware-Voyageur Tax-Free California Fund x x x -
Delaware-Voyageur Tax-Free Colorado Fund x x x -
Delaware-Voyageur Tax-Free Florida Insured Fund x x x -
Delaware-Voyageur Tax-Free Florida Intermediate Fund x x x -
Delaware-Voyageur Tax-Free Florida Fund x x x -
Delaware-Voyageur Tax-Free Idaho Fund x x x -
Delaware-Voyageur Tax-Free Iowa Fund x x x -
Delaware-Voyageur Tax-Free Kansas Fund x x x -
Delaware-Voyageur Minnesota High Yield Municipal Bond Fund x x x -
Delaware-Voyageur Minnesota Insured Fund x x x -
Delaware-Voyageur Tax-Free Minnesota Intermediate Fund x x x -
Delaware-Voyageur Tax-Free Minnesota Fund x x x -
Delaware-Voyageur Tax-Free Missouri Insured Fund x x x -
Delaware-Voyageur Tax-Free New Mexico Fund x x x -
Delaware-Voyageur Tax-Free New York Fund x x x -
Delaware-Voyageur Tax-Free North Dakota Fund x x x -
Delaware-Voyageur Tax-Free Oregon Insured Fund x x x -
Tax-Free Pennsylvania Fund x x x -
Delaware-Voyageur Tax-Free Utah Fund x x x -
Delaware-Voyageur Tax-Free Washington Insured Fund x x x -
Delaware-Voyageur Tax-Free Wisconsin Fund x x x -

Money Market Funds
Delaware Cash Reserve x x x x
U.S. Government Money Fund x - - x
Tax-Free Money Fund x - - x

</TABLE>

(Not Part of Prospectus)

-73-

<PAGE>

(GLOBAL-ITF-ABC)

APPENDIX C--RATINGS

International Small Cap Fund may invest up to 15% of its net assets,
and Emerging Markets Fund may invest up to 35% of its assets, in high yield,
high risk foreign fixed income securities and Global Assets Fund has the ability
to invest up to 15% of its net assets in high yield, high risk U.S. fixed-income
securities. The table set forth below shows asset composition, based on rating
categories, of such securities held by Global Assets Fund. Certain securities
may not be rated because the rating agencies were either not asked to provide
ratings (e.g., many issuers of privately placed bonds do not seek ratings) or
because the rating agencies declined to provide a rating for some reason, such
as insufficient data. The table below shows the percentage of Global Assets
Fund's high yield, high risk securities which are not rated. The information
contained in the table was prepared based on a dollar weighted average of the
Fund's portfolio composition based on month end data for the fiscal year ended
November 30, 1996. The paragraphs following the table contain excerpts from
Moody's and S&P's rating descriptions. These credit ratings evaluate only the
safety of principal and interest and do not consider the market value risk
associated with high yield securities.

Average Weighted
Percentage of Portfolio
Rating Moody's of Global Assets Fund
---------------- -------------------------
Ba/BB 3.34%
B/B 4.10%
Not Rated/Other 0.10%

General Rating Information

Bonds
Excerpts from Moody's description of its bond ratings: Aaa--judged to
be the best quality. They carry the smallest degree of investment risk;
Aa--judged to be of high quality by all standards; A--possess favorable
attributes and are considered "upper medium" grade obligations; Baa-- considered
as medium grade obligations. Interest payments and principal security appear
adequate for the present but certain protective elements may be lacking or may
be characteristically unreliable over any great length of time; Ba--judged to
have speculative elements; their future cannot be considered as well assured.
Often the protection of interest and principal payments may be very moderate and
thereby not well safeguarded during both good and bad times over the future.
Uncertainty of position characterizes bonds in this class; B--generally lack
characteristics of the desirable investment. Assurance of interest and principal
payments or of maintenance of other terms of the contract over any long period
of time may be small; Caa--are of poor standing. Such issues may be in default
or there may be present elements of danger with respect to principal or
interest; Ca--represent obligations which are speculative in a high degree. Such
issues are often in default or have other marked shortcomings; C--the lowest
rated class of bonds and issues so rated can be regarded as having extremely
poor prospects of ever attaining any real investment standing.

-75-
<PAGE>

(GLOBAL-ITF-ABC)

Excerpts from S&P's description of its bond ratings: AAA--highest grade
obligations. They possess the ultimate degree of protection as to principal and
interest; AA--also qualify as high grade obligations, and in the majority of
instances differ from AAA issues only in a small degree; A- - strong ability to
pay interest and repay principal although more susceptible to changes in
circumstances; BBB--regarded as having an adequate capacity to pay interest and
repay principal; BB, B, CCC, CC--regarded, on balance, as predominantly
speculative with respect to capacity to pay interest and repay principal in
accordance with the terms of the obligation. BB indicates the lowest degree of
speculation and CC the highest degree of speculation. While such debt will
likely have some quality and protective characteristics, these are outweighed by
large uncertainties or major risk exposures to adverse conditions; C- -reserved
for income bonds on which no interest is being paid; D--in default, and payment
of interest and/or repayment of principal is in arrears.

-76-
<PAGE>

(GLOBAL-ITF-ABC)

The Delaware Group includes funds with a wide range of investment
objectives. Stock funds, income funds, national and state-specific tax-free
funds, money market funds, global and international funds and closed-end equity
funds give investors the ability to create a portfolio that fits their personal
financial goals. For more information, contact your financial adviser or call
Delaware Group at 800-523- 4640.

INVESTMENT MANAGER
Delaware International Advisers Ltd.
Veritas House
125 Finsbury Pavement
London, England EC2A 1NQ

SUB-ADVISER
Delaware Management Company, Inc.
One Commerce Square
Philadelphia, PA 19103

NATIONAL DISTRIBUTOR
Delaware Distributors, L.P.
1818 Market Street
Philadelphia, PA 19103

SHAREHOLDER SERVICING,
DIVIDEND DISBURSING,
ACCOUNTING SERVICES
AND TRANSFER AGENT
Delaware Service Company, Inc.
1818 Market Street
Philadelphia, PA 19103

LEGAL COUNSEL
Stradley, Ronon, Stevens & Young, LLP
One Commerce Square
Philadelphia, PA 19103

INDEPENDENT AUDITORS
Ernst & Young LLP
Two Commerce Square
Philadelphia, PA 19103

CUSTODIAN
The Chase Manhattan Bank
4 Chase Metrotech Center
Brooklyn, NY 11245

<PAGE>

- ---------------------------------------------------------

INTERNATIONAL SMALL CAP FUND
GLOBAL BOND FUND
GLOBAL ASSETS FUND
EMERGING MARKETS FUND

- ---------------------------------------------------------

A CLASS
- ---------------------------------------------------------

B CLASS
- ---------------------------------------------------------

C CLASS
- ---------------------------------------------------------

P R O S P E C T U S

- ---------------------------------------------------------

JULY 21, 1997

DELAWARE
GROUP
---------

<PAGE>

(GLOBAL-IEF-ABC)

INTERNATIONAL EQUITY FUND
PROSPECTUS

JULY 21, 1997

A CLASS SHARES
B CLASS SHARES
C CLASS SHARES

--------------------------------------------------

1818 Market Street, Philadelphia, PA 19103

For Prospectus and Performance: Nationwide 800-523-4640

Information on Existing Accounts: (SHAREHOLDERS ONLY)
Nationwide 800-523-1918

Dealer Services: (BROKER/DEALERS ONLY)
Nationwide 800-362-7500

Representatives of Financial Institutions:
Nationwide 800-659-2265

This Prospectus describes shares of the International Equity Series
(the "Fund" or the "International Equity Fund") of Delaware Group Global &
International Funds, Inc. ("Global Funds, Inc."), a professionally-managed
mutual fund of the series type.

International Equity Fund's objective is to achieve long-term growth
without undue risk to principal. The Fund seeks to achieve its objective by
investing primarily in securities that provide the potential for capital
appreciation and income. See Investment Objectives and Strategies.

The Fund offers three retail classes of shares: "Class A Shares,"
"Class B Shares" and "Class C Shares" (individually, a "Class" and collectively,
the "Classes"). These alternatives permit an investor to choose the method of
purchasing shares that is most suitable for his or her needs.

This Prospectus relates only to the Classes and sets forth information
that you should read and consider before you invest. Please retain it for future
reference. The Fund's Statement of Additional Information ("Part B" of Global
Funds, Inc.'s registration statement), dated July 21, 1997, as it may be amended
from time to time, contains additional information about the Fund and has been
filed with the Securities and Exchange Commission. Part B is incorporated by
reference into this Prospectus and is available, without charge, by writing to
Delaware Distributors, L.P. at the above address or by calling the above
numbers. The Fund's financial statements appear in the Annual Report of Global
Funds, Inc. for the fiscal year ended November 30, 1996, which will accompany
any response to requests for Part B.

The Fund also offers International Equity Fund Institutional Class,
which is available for purchase only by certain investors. A prospectus for
International Equity Fund Institutional Class can be obtained by writing to
Delaware Distributors, L.P. at the above address or by calling the above
numbers.

-1-
<PAGE>

TABLE OF CONTENTS

Cover Page How to Buy Shares
Synopsis Redemption and Exchange
Summary of Expenses Dividends and Distributions
Financial Highlights Taxes
Investment Objective and Strategy Calculation of Offering Price and
Suitability Net Asset Value Per Share
Investment Strategy Management of the Fund
Special Risk Considerations Other Investment Policies and
The Delaware Difference Risk Considerations
Plans and Services Appendix A--Investment Illustrations
Retirement Planning Appendix B--Classes Offered
Classes of Shares

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 THE PRINCIPAL AMOUNT INVESTED. SHARES OF
THE FUND ARE NOT BANK OR CREDIT UNION DEPOSITS.

-2-

<PAGE>

(GLOBAL-IEF-ABC)

SYNOPSIS

Investment Objective

The investment objective of International Equity Fund is to achieve
long-term growth without undue risk to principal. This Fund seeks to achieve its
objective by investing primarily in equity securities that provide the potential
for capital appreciation and income. The Fund is an international fund. As such,
at least 65% of the Fund's total assets will be invested in equity securities of
issuers organized or having a majority of their assets in or deriving a majority
of their operating income in at least three different countries outside of the
United States. For further details, see Investment Objectives and Strategies and
Other Investment Policies and Risk Considerations.

Risk Factors and Special Considerations

Prospective investors should consider a number of factors:

2. The Fund has the right to engage in options and futures transactions
for hedging purposes, to counterbalance portfolio volatility. In connection with
futures transactions, the Fund will maintain certain collateral in special
accounts established with futures commission merchants or on their behalf in the
care of The Chase Manhattan Bank (the "Custodian Bank"). While the Fund does not
engage in options and futures for speculative purposes, there are risks which
result from the use of these instruments, and an investor should carefully
review the descriptions of these risks in this Prospectus. Certain options and
futures may be considered to be derivative securities. See Options and Futures
Contracts and Options on Futures Contracts under Other Investment Policies and
Risk Considerations.

3. The Fund may invest in the markets of certain emerging countries.
These markets may be subject to a greater degree of economic, political and
social instability than is the case in the United States, Western European and
other developed markets. See Special Risk Considerations.

Investment Manager, Distributor and Service Agent
Delaware International Advisers Ltd. ("Delaware International" or the
"Manager") is the investment manager for the Fund and, in that capacity,
provides investment advice to the Fund, subject to the supervision of Global
Funds, Inc.'s Board of Directors. Delaware Distributors, L.P. (the
"Distributor") is the national distributor for the Fund and for all of the other
mutual funds in the Delaware Group. Delaware Service Company, Inc. (the
"Transfer Agent") is the shareholder servicing, dividend disbursing, accounting
services and transfer agent for the Fund and for all of the other mutual funds
in the Delaware Group. See Summary of Expenses and Management of the Fund for
further information regarding the Manager and the fees payable under the Fund's
Investment Management Agreement.

Sales Charges
The price of Class A Shares includes a maximum front-end sales charge
of 4.75% of the offering price, which, based on the net asset values of

-3-
<PAGE>

International Equity Fund Class A Shares as of the end of the Global Funds,
Inc.'s most recent fiscal year, is equivalent to 4.99% of the amount invested.
The front-end sales charge is reduced on certain transactions of at least
$100,000 but under $1,000,000. For purchases of $1,000,000 or more, the
front-end sales charge is eliminated. Class A Shares are subject to annual 12b-1
Plan expenses for the life of the investment.

The price of each of the Class B Shares is equal to the net asset value
per share. Class B Shares are subject to a contingent deferred sales charge
("CDSC") of: (i) 4% if shares are redeemed within two years of purchase; (ii) 3%
if shares are redeemed during the third or fourth year following purchase; (iii)
2% if shares are redeemed during the fifth year following purchase; and (iv) 1%
if shares are redeemed during the sixth year following purchase. Class B Shares
are subject to annual 12b-1 Plan expenses for approximately eight years after
purchase. See Deferred Sales Charge Alternative - Class B Shares and Automatic
Conversion of Class B Shares under Classes of Shares.

See Classes of Shares and Distribution (12b-1) and Service under
Management of the Fund.

Purchase Amounts
Generally, the minimum initial investment in any Class is $1,000.
Subsequent investments generally must be at least $100.

Redemption and Exchange
Class A Shares of the Fund may be redeemed or exchanged at the net
asset value calculated after receipt of the redemption or exchange request.
Neither the Fund nor the Distributor assesses a charge for redemptions or
exchanges of Class A Shares, except for certain redemptions of shares purchased
at net asset value, which may be subject to a CDSC if a dealer's commission was
paid in connection with such purchases. See Front-End Sales Charge Alternative
Class A Shares under Classes of Shares.

Class B Shares and Class C Shares may be redeemed or exchanged at the
net asset value calculated after receipt of the redemption or exchange request
subject, in the case of redemptions, to any applicable CDSC. Neither the Fund
nor the Distributor assesses any charges other than the CDSC for redemptions or
exchanges of Class B or Class C Shares. There are certain limitations on an

-4-
<PAGE>
(GLOBAL-IEF-ABC)

investor's ability to exchange shares between the various classes of shares that
are offered. See Redemption and Exchange.

Open-End Investment Company

Global Funds, Inc. is an open-end, registered management investment
company and International Equity Fund operates as a diversified fund as defined
under the Investment Company Act of 1940 (the "1940 Act"). Global Funds, Inc.
was organized as a Maryland corporation on May 30, 1991. See Shares under
Management of the Fund.

-5-
<PAGE>
(GLOBAL-IEF-ABC)

SUMMARY OF EXPENSES

A general comparison of the sales arrangements and other expenses
applicable to Class A, Class B and Class C Shares of the Fund follows:
<TABLE>
<CAPTION>

International Equity Fund
Class A Class B Class C
Shareholder Transaction Expenses Shares Shares Shares
- -------------------------------- --------- ---------- ---------
<S> <C> <C> <C>
Maximum Sales Charge Imposed on Purchases
(as a percentage of offering price)............................ 4.75% None None

Maximum Sales Charge Imposed on Reinvested Dividends
(as a percentage of offering price)........................... None None None

Maximum Contingent Deferred Sales Charge
(as a percentage of original purchase price or
redemption proceeds, as applicable)............................ None* 4.00%* 1.00%*

Redemption Fees................................................ None** None** None**
</TABLE>

* Class A purchases of $1 million or more may be made at net asset value.
However, if in connection with any such purchase a dealer commission is paid
to the financial adviser through whom such purchase is effected, a CDSC of
1% will be imposed on certain redemptions within 12 months of purchase
("Limited CDSC"). Class B Shares are subject to a CDSC of: (i) 4% if shares
are redeemed within two years of purchase; (ii) 3% if shares are redeemed
during the third or fourth year following purchase; (iii) 2% if shares are
redeemed during the fifth year following purchase; (iv) 1% if shares are
redeemed during the sixth year following purchase; and (v) 0% thereafter.
Class C Shares are subject to a CDSC of 1% if the shares are redeemed within
12 months of purchase. See Contingent Deferred Sales Charge for Certain
Redemptions of Class A Shares Purchased at Net Asset Value under Redemption
and Exchange and Deferred Sales Charge Alternative - Class B Shares and
Level Sales Charge Alternative - Class C Shares under Classes of Shares.

** CoreStates Bank, N.A. currently charges $7.50 per redemption for redemptions
payable by wire.

-6-

<PAGE>

(GLOBAL-IEF-ABC)

<TABLE>
<CAPTION>
International Equity Fund
Annual Operating Expenses (as a Class A Class B Class C
percentage of average daily net assets) Shares Shares Shares
- --------------------------------------- ---------- --------- ---------
<S> <C> <C> <C>
Management Fees(after voluntary waiver)........................ 0.64%++ 0.64%++ 0.64%++

12b-1 Expenses (including service fees)........................ 0.30%+ 1.00%+ 1.00%+

Other Operating Expenses ...................................... 0.91%++ 0.91%++ 0.91%++

Total Operating Expenses(after voluntary waivers)......... 1.85%++ 2.55%++ 2.55%++
</TABLE>

++ Delaware International has elected voluntarily to waive that portion, if
any, of the annual management fees payable by the Fund and to pay the Fund's
expenses to the extent necessary to ensure that the Total Operating Expenses
(after voluntary waivers and payments) of Class A Shares of the Fund does
not exceed 1.85% and each of the Class B Shares and Class C Shares does not
exceed 2.55% (in all cases, exclusive of taxes, interest, brokerage
commissions and extraordinary expenses, but inclusive of 12b-1 fees) through
November 30, 1997. Absent the voluntary fee waiver and payments, the Total
Operating Expenses are expected to be 1.95% for Class A Shares and 2.65% for
Class B shares and Class C Shares, reflecting Management Fees of 0.75%.

For expense information about International Equity Fund Institutional
Class see the separate prospectus relating to that class.

-7-

<PAGE>

(GLOBAL-IEF-ABC)

The following example illustrates the expenses that an investor would
pay on a $1,000 investment over various time periods, assuming (1) a 5% annual
rate of return, (2) redemption and no redemption at the end of each time period
and (3) for Class B Shares and Class C Shares, payment of a CDSC at the time of
redemption, if applicable. The following example assumes the voluntary waiver of
the management fee and/or other payment of expenses by the Manager as discussed
in this Prospectus.
<TABLE>
<CAPTION>

Assuming Redemption Assuming No Redemption
1 year 3 years 5 years 10 years 1 year 3 years 5 years 10 years
------ ------- ------- -------- ------ ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Class A Shares $65(1) $103 $143 $254 $65 $103 $143 $254

Class B Shares $66 $109 $156 $271(2) $26 $79 $136 $271(2)

Class C Shares $36 $79 $136 $289 $26 $79 $136 $289
</TABLE>

(1) Generally, no redemption charge is assessed upon redemption of Class A
Shares. Under certain circumstances, however, a Limited CDSC, which has not
been reflected in this calculation, may be imposed on certain redemptions
within 12 months of purchase. See Contingent Deferred Sales Charge for
Certain Redemptions of Class A Shares Purchased at Net Asset Value under
Redemption and Exchange.

(2) At the end of approximately eight years after purchase, Class B Shares of
the Fund will be automatically converted into Class A Shares of the Fund.
The example above assumes conversion of Class B Shares at the end of the
eighth year. However, the conversion may occur as late as three months after
the eighth anniversary of purchase, during which time the higher 12b-1 Plan
fees payable by Class B Shares will continue to be assessed. Information for
the ninth and tenth years reflects expenses of the Class A Shares. See
Automatic Conversion of Class B Shares under Classes of Shares for a
description of the automatic conversion feature.

This example should not be considered a representation of past or future
expenses or performance. Actual expenses may be greater or less than those
shown.

The purpose of the above tables is to assist the investor in
understanding the various costs and expenses that an investor in any of the
Classes will bear directly or indirectly.

-8-

<PAGE>

(GLOBAL-IEF-ABC)

- ------------------------------------------------------------------------------

FINANCIAL HIGHLIGHTS

The following financial highlights are derived from the financial statements of
International Equity Fund of Delaware Group Global & International Funds, Inc.
and have been audited by Ernst & Young LLP, independent auditors. The data
should be read in conjunction with the financial statements, related notes, and
the report of Ernst & Young LLP covering such financial information and
highlights, all of which are incorporated by reference into Part B. Further
information about the Fund's performance is contained in the Fund's Annual
Report to shareholders. A copy of the Fund's Annual Report (including the report
of Ernst & Young LLP) may be obtained from Global Funds, Inc. upon request at no
charge.
- -------------------------------------------------------------------------------

-9-

<PAGE>
(GLOBAL-IEF-ABC)

GLOB-IEF-CHT
<TABLE>
<CAPTION>

International Equity Fund
Class A Shares
------------------------------------------------------------------------------
Period
10/31/91(1)
Year Ended through
11/30/96 11/30/95 11/30/94 11/30/93 11/30/92 11/30/91

<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period............. $12.190 $11.920 $11.250 $9.590 $9.650 $10.000

Income From Investment Operations
- ---------------------------------
Net Investment Income(4)......................... 0.490 0.297 0.140 0.499 0.162 (0.004)
Net Gains (Losses) on Securities
(both realized and unrealized)................ 2.385 0.628 0.895 1.636 (0.172) (0.346)
------- ------- ------- ------ ------- --------
Total From Investment Operations........... 2.875 0.925 1.035 2.135 (0.010) (0.350)
------- ------- ------- ------ ------- --------

Less Distributions
- ------------------
Dividends from Net Investment Income............. (0.280) (0.185) (0.225) (0.475) (0.050) none
Distributions from Capital Gains................. (0.145) (0.470) (0.140) none none none
------- ------- ------- ------ ------- --------
Total Distributions........................ (0.425) (0.655) (0.365) (0.475) (0.050) none
------- ------- ------- ------ ------- --------

Net Asset Value, End of Period.................. $14.640 $12.190 $11.920 $11.250 $9.590 $9.650
======= ======= ======= ======= ====== ========

Total Return(2).................................. 24.22%(2)(3) 8.17%(2) 9.23%(2)(3) 23.08%(2)(3) (0.15%)(2)(3) (3.50%)(2)(3)
- ------------

- --------------

Ratios/Supplemental Data
- ------------------------
Net Assets, End of Period (000's omitted)........$89,177 $62,251 $53,736 $31,673 $4,604 $723
Ratio of Expenses to Average Daily Net Assets.... 1.85% 2.07% 1.56% 1.25% 1.25% (1)
Ratio of Expenses to Average Daily Net Assets
Prior to Expense Limitation................... 1.95% 2.07% 1.82% 2.16% 5.67% (1)
Ratio of Net Investment Income to Average Daily
Net Assets...................................... 3.70% 2.57% 1.22% 3.91% 2.44% (1)
Ratio of Net Investment Income to Average
Daily Net Assets
Prior to Expense Limitation................... 3.60% 2.57% 0.96% 3.00% (2.00%) (1)
Portfolio Turnover Rate.......................... 9% 21% 27% 24% 12% (1)
Average Commission Rate Paid.....................$0.0243 N/A N/A N/A N/A N/A
</TABLE>
- ----------

(1) Date of initial public offering; total return has been annualized. The
ratios of expenses and net investment income to average daily net assets and
portfolio turnover have been omitted as management believes such ratios for
this relatively short period are not meaningful.
(2) Does not reflect maximum sales charge that is or was in effect, 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
Redemptions of Class A Shares Purchased at Net Asset Value under Redemption
and Exchange.
(3) Total return reflects the expense limitations referenced under Summary of
Expenses and Management of the Fund.
(4) The year ended November 30, 1996 per share information was based on the
average share outstanding method.

-10-
<PAGE>

(GLOBAL-IEF-ABC)

GLOB-IEF-CHT
<TABLE>
<CAPTION>
International Equity Fund International Equity Fund
Class B Shares Class C Shares
------------------------------------------ --------------------------------
Period Period
Year Year 9/6/94(1) Year 11/29/95(2)
Ended Ended through Ended through
11/30/96 11/30/95 11/30/94 11/30/96 11/30/95

<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $12.130 $11.900 $12.860 $12.190 $12.240

Income From Investment Operations
- ---------------------------------
Net Investment Income(5)........... 0.398 0.278 0.036 0.400 none
Net Gains (Losses) on Securities
(both realized and unrealized).. 2.377 0.567 (0.966) 2.375 (0.050)
------- ------- ------- ------- -------
Total From Investment
Operations ................ 2.775 0.845 (0.930) 2.775 (0.050)
------- ------- ------- ------- -------

Less Distributions
- ------------------
Dividends from Net Investment Income (0.200) (0.145) (0.030) (0.280) none
Distributions from Capital Gains... (0.145) (0.470) none (0.145) none
------- ------- ------- ------- -------
Total Distributions.......... (0.345) (0.615) (0.030) (0.425) none
------- ------- ------- ------- -------
Net Asset Value, End of Period..... $14.560 $12.130 $11.900 $14.540 $12.190
======= ======= ======= ======= =======

Total Return....................... 23.38%(3)(4) 7.46%(3) (7.24%)(3)(4) 23.39%(3)(4) (2)
- ------------
- --------------------

Ratios/Supplemental Data
- ------------------------
Net Assets, End of Period
(000's omitted)................... $10,878 $3,471 $624 $1,909 $5
Ratio of Expenses to Average Daily
Net Assets...................... 2.55% 2.77% 2.26% 2.55% (2)
Ratio of Expenses to Average Daily
Net Assets Prior to Expense
Limitation....................... 2.65% 2.77% 2.52% 2.65% (2)
Ratio of Net Investment Income to
Average Daily Net Assets........ 3.00% 1.87% 0.52% 3.00% (2)
Ratio of Net Investment Income
to Average Daily Net Assets
Prior to Expense Limitation...... 2.90% 1.87% 0.26% 2.90% (2)
Portfolio Turnover Rate............ 9% 21% 27% 9% (2)
Average Commission Rate Paid....... $0.0243 N/A N/A $0.0243 N/A
</TABLE>

- -----------
(1) Date of initial public offering; ratios have been annualized but total
return has not been annualized.

(2) Date of initial public offering. The ratios of expenses and net investment
income to average daily net assets, total return and portfolio turnover have
been omitted as management believes that such ratios, total return and
portfolio turnover for this relatively short period are not meaningful.

(3) Does not include contingent deferred sales charge which varies from 1%-4%
depending upon the holding period for Class B Shares and 1% for Class C
Shares.

(4) Total return reflects the expense limitations referenced under Summary of
Expenses and Management of the Fund.

(5) The year ended November 30, 1996 per share information was based on the
average share outstanding method.

-11-
<PAGE>

(GLOBAL-IEF-ABC)

INVESTMENT OBJECTIVE AND STRATEGY

SUITABILITY
Investors considering an investment in International Equity Fund should
have a long-term investment time frame.

The Fund cannot assure a specific rate of return or that principal will
be protected. The value of the Fund's shares can be expected to move up and down
depending on market conditions. Consequently, appreciation may be obtained in
periods of generally rising markets, while in declining markets the value of the
Fund's shares may decline.

Investments in foreign securities, whether equity or fixed-income,
involve special risks including those related to currency fluctuations, as well
as to political, economic and social situations different from and potentially
more volatile than those in the United States. In addition, the accounting, tax
and financial reporting standards of foreign countries are different from and
may be less reliable or comprehensive than those relating to U.S. securities
issuers. See Special Risk Considerations for a complete discussion of the risk
factors affecting any international investment. For these reasons, the Fund is
not suitable for short-term investors. However, through the cautious selection
and supervision of its portfolio, the Manager will strive to achieve the Fund's
objective.

The Fund may be suitable for investors with a long-term investment
horizon (at least three years) who are looking for long-term growth potential
from a portfolio of international securities.

* * *

Ownership of shares of the Fund reduces the bookkeeping and
administrative inconveniences that would be involved with direct purchases of
the securities held in the Fund's portfolio.

Investors should not consider a purchase of shares of the Fund as
equivalent to a complete investment program. The Delaware Group includes a
family of funds, generally available through registered investment dealers,
which may be used together to create a more complete investment program.

INVESTMENT STRATEGY

The objective of International Equity Fund is to achieve long-term
growth without undue risk to principal. The Fund seeks to achieve this objective
by investing primarily in securities that provide the potential for capital
appreciation and income. The Fund is an international fund. Under normal
circumstances, at least 65% of the Fund's total assets will be invested in the
securities of issuers organized or having a majority of their assets in or
deriving a majority of their operating income in at least three different
countries outside of the United States. The Fund will attempt to achieve its
objective by investing in a broad range of equity securities including common
stocks, preferred stocks, convertible securities and warrants. The Manager will
employ a dividend discount analysis across country boundaries and will also use
a purchasing power parity approach to identifying currencies and markets that
are overvalued or undervalued relative to the U.S. dollar.

-12-
<PAGE>

With a dividend discount analysis, the Manager looks at future
anticipated dividends and discounts the value of those dividends back to what
they would be worth if they were being paid today. The Manager uses this
technique to attempt to compare the value of different investments. With a
purchasing power parity approach, the Manager attempts to identify the amount of
goods and services that a dollar will buy in the United States and compare that
to the amount of a foreign currency required to buy the same amount of goods and
services in another country. Eventually, currencies should trade at levels that
should make it possible for the dollar to buy the same amount of goods and
services overseas as in the United States. When the dollar buys less, the
foreign currency may be considered to be overvalued. When the dollar buys more,
the currency may be considered to be undervalued. The Fund may also invest in
sponsored or unsponsored American Depositary Receipts, European Depositary
Receipts or Global Depositary Receipts ("Depositary Receipts").

While the Fund may purchase securities in any foreign country,
developed and underdeveloped, or emerging market countries, it is currently
anticipated that the countries in which the Fund may invest will include, but
not be limited to, Canada, Germany, the United Kingdom, France, the Netherlands,
Belgium, Spain, Switzerland, Japan, Australia, Hong Kong and Singapore/Malaysia.
With respect to certain countries, investments by an investment company may only
be made through investments in closed-end investment companies that in turn are
authorized to invest in the securities of such countries. See Investment Company
Securities under Other Investment Policies and Risk Considerations.

For temporary defensive purposes, the Fund may invest all or a
substantial portion of its assets in high quality debt instruments issued by
foreign governments, their agencies, instrumentalities or political
subdivisions, the U.S. government, its agencies or instrumentalities and which
are backed by the full faith and credit of the U.S. government, or issued by
foreign or U.S. companies. For example, the Fund may invest in U.S. fixed-income
markets when the Manager believes that the global equity markets are excessively
volatile or overvalued so that the Fund's objective cannot be achieved in such
markets. Any corporate debt obligations will be rated AA or better by Standard &
Poor's Ratings Group ("S&P"), or Aa or better by Moody's Investors Service, Inc.
("Moody's"), or if unrated, will be determined to be of comparable quality by
the Manager. The Fund may also invest in the securities listed above pending
investment of proceeds from new sales of Fund shares and to maintain sufficient
cash to meet redemption requests.

The Fund may invest in securities issued in any currency and may hold
foreign currency. Securities of issuers within a given country may be
denominated in the currency of another country or in multinational currency
units such as the European Currency Unit ("ECU"). For purposes of the 1940 Act,
the Fund will operate as a diversified fund. The Fund will not concentrate its
investments in any particular industry, which means that the Fund will not
invest 25% or more of its total assets in any one industry.

-13-
<PAGE>

proxy if the holders of more than 50% of the outstanding voting securities of
the Fund are present or represented by proxy; or b) more than 50% of the
outstanding voting securities. Part B lists other more specific investment
restrictions of the Fund which may not be changed without a majority shareholder
vote. A brief discussion of those factors that materially affected the Fund's
performance during its most recently completed fiscal year appears in Global
Funds, Inc.'s Annual Report.

The investment policies of the Fund not identified above as
"fundamental" may be changed by the Board of Directors of Global Funds, Inc.
without a shareholder vote. See Special Risk Considerations and Other Investment
Policies and Risk Considerations.

SPECIAL RISK CONSIDERATIONS

Shareholders should understand that all investments involve risk and
there can be no guarantee against loss resulting from an investment in the Fund,
nor can there be any assurance that the Fund's investment objective will be
attained.

Foreign Securities Risks. The Fund has the right to purchase securities
in any developed, underdeveloped or emerging country. Investors should consider
carefully the substantial risks involved in investing in securities issued by
companies and governments of foreign nations. These risks are in addition to the
usual risks inherent in domestic investments. There is the possibility of
expropriation, nationalization or confiscatory taxation, taxation of income
earned in foreign nations or other taxes imposed with respect to investments in
foreign nations, foreign exchange control (which may include suspension of the
ability to transfer currency from a given country), default in foreign
government securities, political or social instability or diplomatic
developments which could affect investments in securities of issuers in those
nations.

Further, the Fund may encounter difficulty or be unable to pursue legal
remedies and obtain judgments in foreign courts. Commission rates on securities
transactions in foreign countries, which are sometimes fixed rather than subject
to negotiation as in the United States, are likely to be higher. Further, the

-14-
<PAGE>

settlement period of securities transactions in foreign markets may be longer
than in domestic markets, and may be subject to administrative uncertainties. In
many foreign countries, there is less government supervision and regulation of
business and industry practices, stock exchanges, brokers and listed companies
than in the United States, and capital requirements for brokerage firms are
generally lower. The foreign securities markets of many of the countries in
which the Fund may invest may also be smaller, less liquid and subject to
greater price volatility than those in the United States.

Emerging Markets Securities Risks. Compared to the United States and
other developed countries, emerging countries may have volatile social
conditions, relatively unstable governments and political systems, economies
based on only a few industries and economic structures that are less diverse and
mature, and securities markets that trade a small number of securities, which
can result in a low or nonexistent volume of trading. Prices in these securities
markets tend to be volatile and, in the past, securities in these countries have
offered greater potential for gain (as well as loss) than securities of
companies located in developed countries. Until recently, there has been an
absence of a capital market structure or market-oriented economy in certain
emerging countries. Further, investments and opportunities for investments by
foreign investors are subject to a variety of national policies and restrictions
in many emerging countries. These restrictions may take the form of prior
governmental approval, limits on the amount or type of securities held by
foreigners, limits on the types of companies in which foreigners may invest and
prohibitions on foreign investments in issuers or industries deemed sensitive to
national interests. Additional restrictions may be imposed at any time by these
or other countries in which the Fund invests. Also, the repatriation of both
investment income and capital from several foreign countries is restricted and
controlled under certain regulations, including, in some cases, the need for
certain governmental consents. Although these restrictions may in the future
make it undesirable to invest in emerging countries, the Manager does not
believe that any current repatriation restrictions would affect its decision to
invest in such countries. Countries such as those in which the Fund may invest
have historically experienced and may continue to experience, substantial, and
in some periods extremely high rates of inflation for many years, high interest
rates, exchange rate fluctuations or currency depreciation, large amounts of
external debt, balance of payments and trade difficulties and extreme poverty
and unemployment. Other factors which may influence the ability or willingness
to service debt include, but are not limited to, a country's cash flow
situation, the availability of sufficient foreign exchange on the date a payment
is due, the relative size of its debt service burden to the economy as a whole,
its government's policy towards the International Monetary Fund, the World Bank
and other international agencies and the political constraints to which a
government debtor may be subject.

-15-
<PAGE>

to depend on continuing loans and aid from foreign governments, commercial banks
and multilateral organizations, and inflows of foreign investment. The
commitment on the part of these foreign governments, multilateral organizations
and others to make such disbursements may be conditioned on the government's
implementation of economic reforms and/or economic performance and the timely
service of its obligations. Failure to implement such reforms, achieve such
levels of economic performance or repay principal or interest when due may
curtail the willingness of such third parties to lend funds, which may further
impair the issuer's ability or willingness to service its debts in a timely
manner. The cost of servicing external debt will also generally be adversely
affected by rising international interest rates because many external debt
obligations bear interest at rates which are adjusted based upon international
interest rates. The ability to service external debt will also depend on the
level of the relevant government's international currency reserves and its
access to foreign exchange. Currency devaluations may affect the ability of a
government issuer to obtain sufficient foreign exchange to service its external
debt.
As a result of the foregoing, a foreign governmental issuer may default
on its obligations. If such a default occurs, the Fund may have limited
effective legal recourse against the issuer and/or guarantor. Remedies must, in
some cases, be pursued in the courts of the defaulting party itself, and the
ability of the holder of foreign government and government-related debt
securities to obtain recourse may be subject to the political climate in the
relevant country. In addition, no assurance can be given that the holders of
commercial bank debt will not contest payments to the holders of other foreign
government and government-related debt obligations in the event of default
under their commercial bank loan agreements.

It is impossible to forecast the market value of portfolio securities
at the expiration of the contract. Accordingly, it may be necessary for the Fund
to purchase additional foreign currency on the spot market (and bear the expense
of such purchase) if the market value of the security is less than the amount of
foreign currency the Fund is obligated to deliver (and if a decision is made to
sell the security and make delivery of the foreign currency). Conversely, it may
be necessary to sell on the spot market some of the foreign currency received
upon the sale of the portfolio security if its market value exceeds the amount
of foreign currency the Fund is obligated to deliver.

For additional information about the Fund's investment policies and
certain risks associated with investments in certain types of securities,
including purchasing put and call options, futures contracts and options
thereon, and options on foreign currencies, see Other Investment Policies and
Risk Considerations. Part B provides more information concerning the Fund's
investment policies, restrictions and risk factors.

-16-
<PAGE>

(GLOBAL-IEF-ABC)

THE DELAWARE DIFFERENCE

PLANS AND SERVICES
The Delaware Difference is our commitment to provide you with superior
information and quality service on your investments in the Delaware Group of
funds.

SHAREHOLDER PHONE DIRECTORY

Investor Information Center
800-523-4640
Fund Information; Literature; Price; Yield and Performance Figures

Shareholder Service Center
800-523-1918
Information on Existing Regular Investment Accounts and
Retirement Plan Accounts;
Wire Investments; Wire Liquidations; Telephone Liquidations and
Telephone Exchanges

Delaphone
800-362-FUND
(800-362-3863)

Performance Information
You can call the Investor Information Center at any time for current
performance information.

Shareholder Services
During business hours, you can call the Delaware Group's Shareholder
Service Center. Our representatives can answer any questions about your account,
the Fund, various service features and other funds in the Delaware Group.

Delaphone Service
Delaphone is an account inquiry service for investors with Touch-Tone(R)
phone service. It enables you to get information on your account faster than the
mailed statements and confirmations. Delaphone also provides current performance
information on the Fund, as well as other funds in the Delaware Group. Delaphone
is available seven days a week, 24 hours a day.

-17-
<PAGE>

Tax Information
Each year, Global Funds, Inc. will mail to you information on the tax
status of your dividends and distributions.

For more information, see Additional Methods of Adding to Your Investment
Dividend Reinvestment Plan under How to Buy Shares or call the Shareholder
Service Center.

MoneyLine (sm) Services
Delaware Group offers the following services for fast and convenient
transfer of funds between your personal bank account and your Delaware Group
fund account.

-18-
<PAGE>

Right of Accumulation
With respect to Class A Shares, the Right of Accumulation feature
allows you to combine the value of your current holdings of Class A Shares,
Class B Shares and Class C Shares of the Fund with the dollar amount of new
purchases of Class A Shares of the Fund to qualify for a reduced front-end sales
charge on such purchases of Class A Shares. Under the Combined Purchases
Privilege, you may also include certain shares that you own in other funds in
the Delaware Group. See Classes of Shares.

Exchange Privilege
The Exchange Privilege permits you to exchange all or part of your shares
into shares of other mutual funds in the Delaware Group, subject to certain
exceptions and limitations. For additional information on exchanges, see
Investing by Exchange under How to Buy Shares and Redemption and Exchange.

Wealth Builder Option
You may elect to invest in the Fund through regular liquidations of
shares in your accounts in other funds in the Delaware Group. Investments under
this feature are exchanges and are therefore subject to the same conditions and
limitations as other exchanges of Fund shares. See Additional Methods of Adding
to Your Investment - Wealth Builder Option and Investing by Exchange under How
to Buy Shares and Redemption and Exchange.

Financial Information about the Fund
Each fiscal year, you will receive an audited annual report and an
unaudited semi-annual report. These reports provide detailed information about
the Fund's investments and performance. Global Funds, Inc.'s fiscal year ends on
November 30.

-19-
<PAGE>

(GLOBAL-IEF-ABC)

RETIREMENT PLANNING

An investment in the Fund may be suitable for tax-deferred retirement
plans. Among the retirement plans noted below, Class B Shares are available for
investment only by Individual Retirement Accounts, Simplified Employee Pension
Plans, Salary Reduction Simplified Employee Pension Plans, 457 Deferred
Compensation Plans and 403(b)(7) Deferred Compensation Plans.

Salary Reduction Simplified Employee Pension Plan ("SAR/SEP")
Although new SAR/SEP plans may not be established after December 31, 1996,
plans may be maintained by employers having 25 or fewer employees. An employer
may elect to make additional contributions to such existing plans.

-20-
<PAGE>

(GLOBAL-IEF-ABC)

Allied Plans
Class A Shares are available for purchase by participants in certain 401(k)
Defined Contribution Plans ("Allied Plans") which are made available under a
joint venture agreement between the Distributor and another institution through
which mutual funds are marketed and which allow investments in Class A Shares of
designated Delaware Group funds ("eligible Delaware Group fund shares"), as well
as shares of designated classes of non-Delaware Group funds ("eligible
non-Delaware Group fund shares"). Class B Shares and Class C Shares are not
eligible for purchase by Allied Plans.

-21-
<PAGE>

charge will apply if the eligible fund shares were previously acquired through
the exchange of eligible shares on which a sales charge was already paid or
through the reinvestment of dividends. See Investing by Exchange.

-22-
<PAGE>

(GLOBAL-IEF-ABC)

CLASSES OF SHARES

Class B Shares. An investor who elects the deferred sales charge
alternative acquires Class B Shares, which do not incur a front-end sales charge
when they are purchased, but are subject to a contingent deferred sales charge
if they are redeemed within six years of purchase. Class B Shares are subject to
annual 12b-1 Plan expenses of up to a maximum of 1% (0.25% of which are service
fees to be paid to the Distributor, dealers or others for providing personal
service and/or maintaining shareholder accounts) of average daily net assets of
such shares for approximately eight years after purchase. Class B Shares permit
all of the investor's dollars to work from the time the investment is made. The
higher 12b-1 Plan expenses paid by Class B Shares will cause such shares to have
a higher expense ratio and to pay lower dividends than Class A Shares. At the
end of approximately eight years after purchase, the Class B Shares will
automatically be converted into Class A Shares and, thereafter, for the
remainder of the life of the investment, the annual 12b-1 Plan fee of up to
0.30% for the Class A Shares will apply. See Automatic Conversion of Class B
Shares, below.

The alternative purchase arrangements described above permit investors to
choose the method of purchasing shares that is most suitable given the amount of
their purchase, the length of time they expect to hold their shares and other
relevant circumstances. Investors should determine whether, given their
particular circumstances, it is more advantageous to purchase Class A Shares and
incur a front-end sales charge, purchase Class B Shares and have the entire
initial purchase amount invested in the Fund with their investment being subject
to a CDSC if they redeem shares within six years of purchase, or purchase Class

-23-
<PAGE>

(GLOBAL-IEF-ABC)

C Shares and have the entire initial purchase amount invested in the Fund with
their investment being subject to a CDSC if they redeem shares within 12 months
of purchase. In addition, investors should consider the level of annual 12b-1
Plan expenses applicable to each Class. The higher 12b-1 Plan expenses on Class
B Shares and Class C Shares will be offset to the extent a return is realized on
the additional money initially invested upon the purchase of such shares.
However, there can be no assurance as to the return, if any, that will be
realized on such additional money, and the effect of earning a return on such
additional money will diminish over time. In comparing Class B Shares to Class C
Shares, investors should also consider the duration of the annual 12b-1 Plan
expenses to which each of the Classes is subject and the desirability of an
automatic conversion feature, which is available only for Class B Shares.

For the distribution and related services provided to, and the expenses
borne on behalf of, the Fund, the Distributor and others will be paid, in the
case of the Class A Shares, from the proceeds of the front-end sales charge and
12b-1 Plan fees and, in the case of the Class B Shares and the Class C Shares,
from the proceeds of the 12b-1 Plan fees and, if applicable, the CDSC incurred
upon redemption. Financial advisers may receive different compensation for
selling Class A, Class B and Class C Shares. Investors should understand that
the purpose and function of the respective 12b-1 Plans and the CDSCs applicable
to Class B Shares and Class C Shares are the same as those of the 12b-1 Plan and
the front-end sales charge applicable to Class A Shares in that such fees and
charges are used to finance the distribution of the respective Classes. See
Distribution (12b-1) and Service under Management of the Fund.

The NASD has adopted certain rules relating to investment company sales
charges. Global Funds, Inc. and the Distributor intend to operate in compliance
with these rules.

Purchases of $100,000 or more carry a reduced front-end sales charge as
shown in the following table.

-24-
<PAGE>

(GLOBAL-IEF-ABC)
<TABLE>
<CAPTION>
International Equity Fund A Class
- -------------------------------------------------------------------------------------------------------------------
Dealer's
Commission***
Front-End Sales Charge as % of as % of
Amount of Purchase Offering Amount Offering
Price Invested** Price
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Less than $100,000 4.75% 4.99% 4.00%
$100,000 but under $250,000 3.75 3.90 3.00
$250,000 but under $500,000 2.50 2.60 2.00
$500,000 but under $1,000,000* 2.00 2.05 1.60
</TABLE>

* There is no front-end sales charge on purchases of Class A Shares of
$1 million or more but, under certain limited circumstances,
a 1% Limited CDSC may apply upon redemption of such shares.

** Based on the net asset value per share of the Class A Shares as of the
end of Global Funds, Inc.'s most recent fiscal year.

*** Financial institutions or their affiliated brokers may receive an
agency transaction fee in the percentages set forth above.
- -------------------------------------------------------------------------------

The Fund must be notified when a sale takes place which would qualify
for the reduced front-end sales charge on the basis of previous or
current purchases. The reduced front-end sales charge will be granted
upon confirmation of the shareholder's holdings by such Fund. Such
reduced front-end sales charges are not retroactive.

From time to time, upon written notice to all of its dealers, the
Distributor may hold special promotions for specified periods during
which the Distributor may reallow to dealers up to the full amount of
the front-end sales charge shown above. In addition, certain dealers
who enter into an agreement to provide extra training and information
on Delaware Group products and services and who increase sales of
Delaware Group funds may receive an additional commission of up to
0.15% of the offering price. Dealers who receive 90% or more of the
sales charge may be deemed to be underwriters under the 1933 Act.

- -------------------------------------------------------------------------------

-25-
<PAGE>
(GLOBAL-IEF-ABC)

Dealer's Commission
(as a percentage of
Amount of Purchase amount purchased)
------------------ --------------------
Up to $2 million 1.00%
Next $1 million up to $3 million 0.75
Next $2 million up to $5 million 0.50
Amount over $5 million 0.25

In determining a financial adviser's eligibility for the dealer's
commission, purchases of Class A Shares of other Delaware Group funds as to
which a Limited CDSC applies may be aggregated with those of the Class A Shares
of the Fund. Financial advisers also may be eligible for a dealer's commission
in connection with certain purchases made under a Letter of Intention or
pursuant to an investor's Right of Accumulation. Financial advisers should
contact the Distributor concerning the applicability and calculation of the
dealer's commission in the case of combined purchases.

Combined Purchases Privilege

By combining your holdings of Class A Shares with your holdings of
Class B Shares and/or Class C Shares of the Fund and shares of other funds in
the Delaware Group, except those noted below, you can reduce the front-end sales
charges on any additional purchases of Class A Shares. Shares of Delaware Group
Premium Fund, Inc. beneficially owned in connection with ownership of variable
insurance products may be combined with other Delaware Group fund holdings.
Assets held in any stable value product available through the Delaware Group may
be combined with other Delaware Group fund holdings. Shares of other funds that
do not carry a front-end sales charge or CDSC may not be included unless they
were acquired through an exchange from a Delaware Group fund that does carry a
front-end sales charge or CDSC.

-26-
<PAGE>
(GLOBAL-IEF-ABC)

Buying Class A Shares at Net Asset Value
Class A Shares of the Fund may be purchased at net asset value under
the Delaware Group Dividend Reinvestment Plan and, under certain circumstances,
the Exchange Privilege and the 12-Month Reinvestment Privilege. See The Delaware
Difference and Redemption and Exchange for additional information.

Purchases of Class A Shares may also be made by clients of registered
representatives of an authorized investment dealer at net asset value within 12
months after the registered representative changes employment, if the purchase
is funded by proceeds from an investment where a front-end sales charge,
contingent deferred sales charge or other sales charge has been assessed.
Purchases of Class A Shares may also be made at net asset value by bank
employees who provide services in connection with agreements between the bank
and unaffiliated brokers or dealers concerning sales of shares of Delaware Group
funds. In addition, purchases of Class A Shares may be made by financial
institutions investing for the account of their trust customers when they are
not eligible to purchase shares of the Fund's Institutional Class. Officers,
directors and key employees of institutional clients of the Manager or any of
its affiliates may purchase Class A Shares at net asset value. Moreover,
purchases may be effected at net asset value for the benefit of the clients of
brokers, dealers and registered investment advisers affiliated with a broker or
dealer, if such broker, dealer or investment adviser has entered into an
agreement with the Distributor providing specifically for the purchase of Class
A Shares in connection with special investment products, such as wrap accounts
or similar fee based programs.

-27-
<PAGE>
(GLOBAL-IEF-ABC)

Purchases of Class A Shares at net asset value may also be made by bank
sponsored retirement plans that are no longer eligible to purchase institutional
class shares as a result of a change in the distribution arrangements.

The Fund must be notified in advance that an investment qualifies for
purchase at net asset value.

Group Investment Plans

Group Investment Plans (e.g., SEP/IRA, SAR/SEP, SIMPLE IRA, SIMPLE
401(k), Profit Sharing, Money Purchase Pension, 401(k) Defined Contribution
Plans and 403(b)(7) and 457 Deferred Compensation Plans) may benefit from the
reduced front-end sales charges available on Class A Shares based on total plan
assets. If a company has more than one plan investing in the Delaware Group of
funds, then the total amount invested in all plans will be aggregated to
determine the applicable front-end sales charge reduction on each purchase, both
initial and subsequent, if, at the time of each such purchase, the company
notifies the Fund in which it is investing that it qualifies for the reduction.
Employees participating in such Group Investment Plans may also combine the
investments held in their plan account to determine the front-end sales charge
applicable to purchases in non-retirement Delaware Group investment accounts if,
at the time of each such purchase, they notify the Fund in which they are
investing that they are eligible to combine purchase amounts held in their plan
account.

For additional information on retirement plans, including plan forms,
applications, minimum investments and any applicable account maintenance fees,
contact your investment dealer or the Distributor.

For other retirement plans and special services, see Retirement
Planning.

-28-
<PAGE>
(GLOBAL-IEF-ABC)

Proceeds from the CDSC and the annual 12b-1 Plan fees are paid to the
Distributor and others for providing distribution and related services, and
bearing related expenses, in connection with the sale of Class B Shares. These
payments support the compensation paid to dealers or brokers for selling Class B
Shares. Payments to the Distributor and others under the Class B 12b-1 Plan may
be in an amount equal to no more than 1% annually. The combination of the CDSC
and the proceeds of the 12b-1 Plan fees makes it possible for the Fund to sell
Class B Shares without deducting a front-end sales charge at the time of
purchase.

Class B Shares of a fund acquired through a reinvestment of dividends
will convert to the corresponding Class A Shares of that fund (or, in the case
of Delaware Group Cash Reserve, Inc., Delaware Cash Reserve Consultant Class)
pro-rata with Class B Shares of that fund not acquired through dividend
reinvestment.

All such automatic conversions of Class B Shares will constitute
tax-free exchanges for federal income tax purposes. See Taxes.

-29-
<PAGE>
(GLOBAL-IEF-ABC)

payments support the compensation paid to dealers or brokers for selling Class C
Shares. Payments to the Distributor and others under the Class C 12b-1 Plan may
be in an amount equal to no more than 1% annually.

Contingent Deferred Sales Charge - Class B Shares and Class C Shares

Class B Shares redeemed within six years of purchase may be subject to
a CDSC at the rates set forth below and Class C Shares redeemed within 12 months
of purchase may be subject to a CDSC of 1%. CDSCs are charged as a percentage of
the dollar amount subject to the CDSC. The charge will be assessed on an amount
equal to the lesser of the net asset value at the time of purchase of the shares
being redeemed or the net asset value of those shares at the time of redemption.
No CDSC will be imposed on increases in net asset value above the initial
purchase price, nor will a CDSC be assessed on redemptions of shares acquired
through reinvestments of dividends or capital gains distributions. For purposes
of this formula, the "net asset value at the time of purchase" will be the net
asset value at purchase of Class B Shares or Class C Shares of the Fund, even if
those shares are later exchanged for shares of another Delaware Group fund. In
the event of an exchange of the shares, the "net asset value of such shares at
the time of redemption" will be the net asset value of the shares that were
acquired in the exchange.

The following table sets forth the rates of the CDSC for Class B Shares
of the Fund:

Contingent Deferred
Sales Charge (as a
Percentage of
Dollar Amount
Year After Purchase Made Subject to Charge)
------------------------ ---------------------
0-2 4%
3-4 3%
5 2%
6 1%
7 and thereafter None

During the seventh year after purchase and, thereafter, until converted
automatically into Class A (GLOBAL-IEF-ABC) Shares, Class B Shares will still be
subject to the annual 12b-1 Plan expenses of up to 1% of average daily net
assets of those shares. See Automatic Conversion of Class B Shares, above.
Investors are reminded that the Class A Shares into which the Class B Shares
will convert are subject to ongoing annual 12b-1 Plan expenses of up to a
maximum of 0.30% of average daily net assets of such shares.

-30-
<PAGE>

distributions, and finally by shares held longest during the six-year period.
With respect to Class C Shares, it will be assumed that shares held for more
than 12 months are redeemed first followed by shares acquired through the
reinvestment of dividends or distributions, and finally by shares held for 12
months or less.

All investments made during a calendar month, regardless of what day of
the month the investment occurred, will age one month on the last day of that
month and each subsequent month.

The CDSC is waived on certain redemptions of Class B Shares and Class C
Shares. See Waiver of Contingent Deferred Sales Charge - Class B and Class C
Shares under Redemption and Exchange.

-31-
<PAGE>

(GLOBAL-IEF-ABC)

International Equity Fund Institutional Class
In addition to offering Class A, Class B and Class C Shares, the Fund
also offers International Equity Fund Institutional Class, which is described in
a separate prospectus and is available for purchase only by certain investors.
International Equity Fund Institutional Class shares generally are distributed
directly by the Distributor and do not have a front-end sales charge, a CDSC or
a Limited CDSC and are not subject to 12b-1 Plan distribution expenses. To
obtain the prospectus that describes International Equity Fund Institutional
Class, contact the Distributor by writing to the address or by calling the
telephone number listed on the back cover of this Prospectus.

-32-
<PAGE>

(GLOBAL-IEF-ABC)

HOW TO BUY SHARES

Purchase Amounts

Generally, the minimum initial purchase is $1,000 for Class A Shares,
Class B Shares and Class C Shares. Subsequent purchases of shares of any Class
generally must be $100 or more. For purchases under the Uniform Gifts to Minors
Act or Uniform Transfers to Minors Act or through an Automatic Investing Plan,
there is a minimum initial purchase of $250 and a minimum subsequent purchase of
$25. Minimum purchase requirements do not apply to retirement plans other than
IRAs, for which there is a minimum initial purchase of $250, and a minimum
subsequent purchase of $25, regardless of which Class is selected.

Investing through Your Investment Dealer
You can make a purchase of shares of the Fund through most investment
dealers who, as part of the service they provide, must transmit orders promptly.
They may charge for this service. If you want a dealer but do not have one, the
Delaware Group can refer you to one.

Investing by Mail
1. Initial Purchases--An Investment Application or, in the case of a retirement
account, an appropriate retirement plan application, must be completed, signed
and sent with a check, payable to International Equity Fund A Class,
International Equity Fund B Class, or International Equity Fund C Class, to
Delaware Group at 1818 Market Street, Philadelphia, PA 19103.

2. Subsequent Purchases--Additional purchases may be made at any time
by mailing a check payable to the specific Fund and Class selected. Your check
should be identified with your name(s) and account number. An investment slip
(similar to a deposit slip) is provided at the bottom of transaction
confirmations and dividend statements that you will receive from Global Funds,
Inc. Use of this investment slip can help expedite processing of your check when
making additional purchases. Your investment may be delayed if you send
additional purchases by certified mail.

1. Initial Purchases--Before you invest, telephone the Shareholder Service
Center to get an account number. If you do not call first, processing of your
investment may be delayed. In addition, you must promptly send your Investment

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Application or, in the case of a retirement account, an appropriate retirement
plan application, for the specific Fund and Class selected, to Delaware Group at
1818 Market Street, Philadelphia, PA 19103.

2. Subsequent Purchases--You may make additional investments anytime by
wiring funds to CoreStates Bank, N.A., as described above. You should advise the
Shareholder Service Center by telephone of each wire you send.

If you want to wire investments to a retirement plan account, call the
Shareholder Service Center for special wiring instructions.

Investing by Exchange
If you have an investment in another mutual fund in the Delaware Group,
you may write and authorize an exchange of part or all of your investment into
shares of the Fund. If you wish to open an account by exchange, call the
Shareholder Service Center for more information. All exchanges are subject to
the eligibility and minimum purchase requirements set forth in each fund's
prospectus. See Redemption and Exchange for more complete information concerning
your exchange privileges.

Holders of Class A Shares of the Fund may exchange all or part of their
shares for certain of the shares of other funds in the Delaware Group, including
other Class A Shares, but may not exchange their Class A Shares for Class B
Shares or Class C Shares of the Fund or of any other fund in the Delaware Group.
Holders of Class B Shares of the Fund are permitted to exchange all or part of
their Class B Shares only into Class B Shares of other Delaware Group funds.
Similarly, holders of Class C Shares of the Fund are permitted to exchange all
or part of their Class C Shares only into Class C Shares of other Delaware Group
funds. See Appendix B--Classes Offered for a list of Delaware Group funds and
the classes they offer. Class B Shares of the Fund and Class C Shares of the
Fund acquired by exchange will continue to carry the CDSC and, in the case of
Class B Shares, the automatic conversion schedule of the fund from which the
exchange is made. The holding period of Class B Shares of the Fund acquired by
exchange will be added to that of the shares that were exchanged for purposes of
determining the time of the automatic conversion into Class A Shares of the
Fund.

Permissible exchanges into Class A Shares of the Fund will be made
without a front-end sales charge, except for exchanges of shares that were not
previously subject to a front-end sales charge (unless such shares were acquired
through the reinvestment of dividends). Permissible exchanges into Class B
Shares or Class C Shares of the Fund will be made without the imposition of a
CDSC by the fund from which the exchange is being made at the time of the
exchange.

See Allied Plans under Retirement Planning for information on exchanges
by participants in an Allied Plan.

Additional Methods of Adding to Your Investment
Call the Shareholder Service Center for more information if you wish to
use the following services:

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1. Automatic Investing Plan
The Automatic Investing Plan enables you to make regular monthly
investments without writing or mailing checks. You may authorize Global Funds,
Inc. to transfer a designated amount monthly from your checking account to your
Fund account. Many shareholders use this as an automatic savings plan.
Shareholders should allow a reasonable amount of time for initial purchases and
changes to these plans to become effective.

2. Direct Deposit
You may have your employer or bank make regular investments directly to
your account for you (for example: payroll deduction, pay by phone, annuity
payments). The Fund also accepts preauthorized recurring government and private
payments by Electronic Fund Transfer, which avoids mail time and check clearing
holds on payments such as social security, federal salaries, Railroad Retirement
benefits, etc.

* * *

3. MoneyLine (sm) On Demand
Through the MoneyLine (sm) On Demand service, you or your investment
dealer may call the Fund to request a transfer of funds from your predesignated
bank account to your Fund account. See MoneyLine (sm) Services under The
Delaware Difference for additional information about this service.

4. Wealth Builder Option
You can use our Wealth Builder Option to invest in the Fund through
regular liquidations of shares in your accounts in other funds in the Delaware
Group. You may also elect to invest in other mutual funds in the Delaware Group
through the Wealth Builder Option through regular liquidations of shares in your
Fund account.

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5. Dividend Reinvestment Plan

You can elect to have your distributions (capital gains and/or dividend
income) paid to you by check or reinvested in your account. Or, you may invest
your distributions in certain other funds in the Delaware Group, subject to the
exceptions noted below as well as the eligibility and minimum purchase
requirements set forth in each fund's prospectus.

Reinvestments of distributions into Class A Shares of the Fund or of
other Delaware Group funds are made without a front-end sales charge.
Reinvestments of distributions into Class B Shares of the Fund or of other
Delaware Group funds or into Class C Shares of the Fund or of other Delaware
Group funds are also made without any sales charge and will not be subject to a
CDSC if later redeemed. See Automatic Conversion of Class B Shares under Classes
of Shares for information concerning the automatic conversion of Class B Shares
acquired by reinvesting dividends.

Holders of Class A Shares of the Fund may not reinvest their
distributions into Class B Shares or Class C Shares of any fund in the Delaware
Group, including the Fund. Holders of Class B Shares of the Fund may reinvest
their distributions only into Class B Shares of the funds in the Delaware Group
which offer that class of shares. Similarly, holders of Class C Shares of the
Fund may reinvest their distributions only into Class C Shares of the funds in
the Delaware Group which offer that class of shares. See Appendix B--Classes
Offered for a list of the funds offering those classes of shares. For more
information about reinvestments, call the Shareholder Service Center.

Delaware Group Asset Planner

To invest in Delaware Group funds using the Delaware Group Asset
Planner asset allocation service, you should complete a Delaware Group Asset
Planner Account Registration Form, which is available only from a financial
adviser or investment dealer. As previously described, the Delaware Group Asset
Planner service offers a choice of four predesigned asset allocation strategies
(each with a different risk/reward profile) in predetermined percentages in
Delaware Group funds. With the help of a financial adviser, you may also design
a customized asset allocation strategy.

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Group accounts into the Asset Planner service may be made at net asset value
under the circumstances described under Investing by Exchange, above. The
minimum initial investment per Strategy is $2,000; subsequent investments must
be at least $100. Individual fund minimums do not apply to investments made
using the Asset Planner service. Class A, Class B and Class C Shares are
available through the Asset Planner service. Generally, only shares within the
same class may be used within the same Strategy. However, Class A Shares of the
Fund and of other funds in the Delaware Group may be used in the same Strategy
with consultant class shares that are offered by certain other Delaware Group
funds. See Appendix B--Classes Offered for the funds in the Delaware Group that
offer consultant class shares.

Purchase Price and Effective Date
The offering price and net asset value of Class A, Class B and Class C
Shares are determined as of the close of regular trading on the New York Stock
Exchange (ordinarily, 4 p.m., Eastern time) on days when the Exchange is open.

The effective date of a purchase made through an investment dealer is
the date the order is received by the Fund. The effective date of a direct
purchase is the day your wire, electronic transfer or check is received, unless
it is received after the time the offering price or net asset value of shares is
determined, as noted above. Purchase orders received after such time will be
effective the next business day.

The Conditions of Your Purchase
The Fund reserves the right to reject any purchase order. If a purchase
is canceled because your check is returned unpaid, you are responsible for any
loss incurred. The Fund can redeem shares from your account(s) to reimburse
itself for any loss, and you may be restricted from making future purchases in
any of the funds in the Delaware Group. The Fund reserves the right to reject
purchase orders paid by third-party checks or checks 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, you may be subject to additional bank
charges for clearance and currency conversion.

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The Fund also reserves the right, following shareholder notification,
to charge a service fee on non-retirement accounts that, as a result of a
redemption, 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 insufficient account balance 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 CDSC
will apply to such assessments.

The Fund also reserves the right, upon 60 days' written notice, to
involuntarily redeem accounts that remain under the minimum initial purchase
amount as a result of redemptions. An investor making the minimum initial
investment may be subject to involuntary redemption without the imposition of a
CDSC or Limited CDSC if he or she redeems any portion of his or her account.

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REDEMPTION AND EXCHANGE

You can redeem or exchange your shares in a number of different ways.
The exchange service is useful if your investment requirements change and you
want an easy way to invest in other equity funds, tax-advantaged funds, bond
funds or money market funds. This service is also useful if you are anticipating
a major expenditure and want to move a portion of your investment into a fund
that has the checkwriting feature. Exchanges are subject to the requirements of
each fund and all exchanges of shares constitute taxable events. See Taxes.
Further, in order for an exchange to be processed, shares of the fund being
acquired must be registered in the state where the acquiring shareholder
resides. You may want to consult your financial adviser or investment dealer to
discuss which funds in the Delaware Group will best meet your changing
objectives, and the consequences of any exchange transaction. You may also call
the Delaware Group directly for fund information.

Your shares will be redeemed or exchanged at a price based on the net
asset value next determined after the Fund receives your request in good order,
subject, in the case of a redemption, to any applicable CDSC or Limited CDSC.
For example, redemption or exchange requests received in good order after the
time the offering price and net asset value of shares are determined will be
processed on the next business day. See Purchase Price and Effective Date under
How to Buy Shares. A shareholder submitting a redemption request may indicate
that he or she wishes to receive redemption proceeds of a specific dollar
amount. In the case of such a request, and in the case of certain redemptions
from retirement plan accounts, the Fund will redeem the number of shares
necessary to deduct the applicable CDSC in the case of Class B and Class C
Shares, and, if applicable, the Limited CDSC in the case of Class A Shares and
tender to the shareholder the requested amount, assuming the shareholder holds
enough shares in his or her account for the redemption to be processed in this
manner. Otherwise, the amount tendered to the shareholder upon redemption will
be reduced by the amount of the applicable CDSC or Limited CDSC. Redemption
proceeds will be distributed promptly, as described below, but not later than
seven days after receipt of a redemption request.

Except as noted below, for a redemption request to be in "good order,"
you must provide your account number, account registration, and the total number
of shares or dollar amount of the transaction. For exchange requests, you must
also provide the name of the fund in which you want to invest the proceeds.
Exchange instructions and redemption requests must be signed by the record
owner(s) exactly as the shares are registered. You may request a redemption or
an exchange by calling the Shareholder Service Center at 800-523-1918. The Fund
may suspend, terminate, or amend the terms of the exchange privilege upon 60
days' written notice to shareholders.

The Fund will process written and telephone redemption requests to the
extent that the purchase orders for the shares being redeemed have already
settled. The Fund will honor redemption requests as to shares for which a check
was tendered as payment, but the Fund will not mail or wire the proceeds until
it is reasonably satisfied that the purchase check has cleared, which may take

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up to 15 days from the purchase date. You can avoid this potential delay if you
purchase shares by wiring Federal Funds. The Fund reserves the right to reject a
written or telephone redemption request or delay payment of redemption proceeds
if there has been a recent change to the shareholder's address of record.

Holders of Class B Shares or Class C Shares that exchange their shares
("Original Shares") for shares of other funds in the Delaware Group (in each
case, "New Shares") in a permitted exchange, will not be subject to a CDSC that
might otherwise be due upon redemption of the Original Shares. However, such
shareholders will continue to be subject to the CDSC and, in the case of Class B
Shares, the automatic conversion schedule of the Original Shares as described in
this Prospectus and any CDSC assessed upon redemption will be charged by the
fund from which the Original Shares were exchanged. In an exchange of Class B
Shares from the Fund, the Fund's CDSC schedule may be higher than the CDSC
schedule relating to the New Shares acquired as a result of the exchange. For
purposes of computing the CDSC that may be payable upon a disposition of the New
Shares, the period of time that an investor held the Original Shares is added to
the period of time that an investor held the New Shares. With respect to Class B
Shares, the automatic conversion schedule of the Original Shares may be longer
than that of the New Shares. Consequently, an investment in New Shares by
exchange may subject an investor to the higher 12b-1 fees applicable to Class B
Shares of the Fund for a longer period of time than if the investment in New
Shares were made directly.

Written Redemption
You can write to the Fund at 1818 Market Street, Philadelphia, PA 19103
to redeem some or all of your shares. The request must be signed by all owners
of the account or your investment dealer of record. For redemptions of more than
$50,000, or when the proceeds are not sent to the shareholder(s) at the address
of record, the Fund requires a signature by all owners of the account and a
signature guarantee for each owner. Each signature guarantee must be supplied by
an eligible guarantor institution. The Fund reserves the right to reject a
signature guarantee supplied by an eligible institution based on its
creditworthiness. The Fund may require further documentation from corporations,
executors, retirement plans, administrators, trustees or guardians.

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Written Exchange
You may also write to the Fund (at 1818 Market Street, Philadelphia, PA
19103) to request an exchange of any or all of your shares into another mutual
fund in the Delaware Group, subject to the same conditions and limitations as
other exchanges noted above.

The Telephone Redemption - Check to Your Address of Record service and
the Telephone Exchange service, both of which are described below, are
automatically provided unless you notify the Fund in which you have your account
in writing that you do not wish to have such services available with respect to
your account. The Fund reserves the right to modify, terminate or suspend these
procedures upon 60 days' written notice to shareholders. It may be difficult to
reach the Fund by telephone during periods when market or economic conditions
lead to an unusually large volume of telephone requests.

Neither the Fund nor its Transfer Agent is responsible for any
shareholder loss incurred in acting upon written or telephone instructions for
redemption or exchange of Fund shares which are reasonably believed to be
genuine. With respect to such telephone transactions, the Fund will follow
reasonable procedures to confirm that instructions communicated by telephone are
genuine (including verification of a form of personal identification) as, if it
does not, such Fund or the Transfer Agent may be liable for any losses due to
unauthorized or fraudulent transactions. Instructions received by telephone are
generally tape recorded, and a written confirmation will be provided for all
purchase, exchange and redemption transactions initiated by telephone. By
exchanging shares by telephone, you are acknowledging prior receipt of a
prospectus for the fund into which your shares are being exchanged.

Telephone Redemption--Proceeds to Your Bank

Redemption proceeds of $1,000 or more can be transferred to your
predesignated bank account by wire or by check. You should authorize this
service when you open your account. If you change your predesignated bank
account, you must complete an Authorization Form and have your signature
guaranteed. For your protection, your authorization must be on file. If you
request a wire, your funds will normally be sent the next business day.
CoreStates Bank, N.A.'s fee (currently $7.50) will be deducted from your
redemption proceeds. If you ask for a check, it will normally be mailed the next
business day after receipt of your redemption request to your predesignated bank
account. There are no separate fees for this redemption method, but the mail
time may delay getting funds into your bank account. Simply call the Shareholder
Service Center prior to the time the offering price and net asset value are
determined, as noted above.

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Systematic Withdrawal Plans
1. Regular Plans
This plan provides shareholders with a consistent monthly (or
quarterly) payment. This is particularly useful to shareholders living on fixed
incomes, since it can provide them with a stable supplemental amount. With
accounts of at least $5,000, you may elect monthly withdrawals of $25 (quarterly
$75) or more. The Fund does not recommend any particular monthly amount, as each
shareholder's situation and needs vary. Payments are normally made by check. In
the alternative, you may elect to have your payments transferred from your Fund
account to your predesignated bank account through the MoneyLine (sm) Direct
Deposit Service. Your funds will normally be credited to your bank account up to
four business days after the payment date. There are no separate fees for this
redemption method. See MoneyLine (sm) Services under The Delaware
Difference for more information about this service.

* * *

Shareholders should not purchase additional shares while participating
in a Systematic Withdrawal Plan.

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For more information on Systematic Withdrawal Plans, call the
Shareholder Service Center.

Redemptions of such Class A Shares held for more than 12 months will
not be subjected to the Limited CDSC and an exchange of such Class A Shares into
another Delaware Group fund will not trigger the imposition of the Limited CDSC
at the time of such exchange. The period a shareholder owns shares into which
Class A Shares are exchanged will count towards satisfying the 12-month holding
period. The Limited CDSC is assessed if such 12-month period is not satisfied
irrespective of whether the redemption triggering its payment is of the Class A
Shares of the Fund or the Class A Shares acquired in the exchange.

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Waiver of Limited Contingent Deferred Sales Charge - Class A Shares
The Limited CDSC for Class A Shares on which a dealer's commission has
been paid will be waived in the following instances: (i) redemptions that result
from the Fund's right to liquidate a shareholder's account if the aggregate net
asset value of the shares held in the account is less than the then-effective
minimum account size; (ii) distributions to participants from a retirement plan
qualified under section 401(a) or 401(k) of the Internal Revenue Code of 1986,
as amended (the "Code"), or due to death of a participant in such a plan; (iii)
redemptions pursuant to the direction of a participant or beneficiary of a
retirement plan qualified under section 401(a) or 401(k) of the Code with
respect to that retirement plan; (iv) periodic distributions from an IRA, SIMPLE
IRA or 403(b)(7) or 457 Deferred Compensation Plan due to death, disability, or
attainment of age 59 1/2 and IRA distributions qualifying under Section 72(t) of
the Internal Revenue Code; (v) returns of excess contributions to an IRA; (vi)
distributions by other employee benefit plans to pay benefits; (vii)
distributions described in (ii), (iv), and (vi) above pursuant to a Systematic
Withdrawal Plan; and (viii) redemptions by the classes of shareholders who are
permitted to purchase shares at net asset value, regardless of the size of the
purchase (see Buying Class A Shares at Net Asset Value under Classes of Shares).

Waiver of Contingent Deferred Sales Charge - Class B and Class C Shares
The CDSC is waived on certain redemptions of Class B Shares in
connection with the following redemptions: (i) redemptions that result from the
Fund's right to liquidate a shareholder's account if the aggregate net asset
value of the shares held in the account is less than the then-effective minimum
account size; (ii) returns of excess contributions to an IRA, SIMPLE IRA,
SEP/IRA or 403(b)(7) or 457 Deferred Compensation Plan; (iii) periodic
distributions from an IRA, SIMPLE IRA, SAR/SEP, SEP/IRA, 403(b)(7) or 457
Deferred Compensation Plan and IRA distributions qualifying under Section 72(t)
of the Internal Revenue Code; and (iv) distributions from an account if the
redemption results from the death of all registered owners of the account (in
the case of accounts established under the Uniform Gifts to Minors or Uniform
Transfers to Minors Acts or trust accounts, the waiver applies upon the death of
all beneficial owners) or a total and permanent disability (as defined in
Section 72 of the Code) of all registered owners occurring after the purchase of
the shares being redeemed.

The CDSC on Class C Shares is waived in connection with the following
redemptions: (i) redemptions that result from the Fund's right to liquidate a
shareholder's account if the aggregate net asset value of the shares held in the
account is less than the then-effective minimum account size; (ii) returns of
excess contributions to an IRA, SIMPLE IRA, 403(b)(7) or 457 Deferred
Compensation Plan, Profit Sharing Plan, Money Purchase Pension Plan or 401(k)
Defined Contribution Plan; (iii) periodic distributions from a 403(b)(7) or 457
Deferred Compensation Plan upon attainment of age 59 1/2, Profit Sharing Plan,
Money Purchase Pension Plan, 401(k) Defined Contribution Plans upon attainment
of age 70 1/2, and IRA distributions qualifying under Section 72(t) of the
Internal Revenue Code; (iv) distributions from a 403(b)(7) Deferred Compensation
Plan, 457 Deferred Compensation Plan, Profit Sharing Plan, or 401(k) Defined
Contribution Plan, under hardship provisions of the plan; (v) distributions from
a 403(b)(7) Deferred Compensation Plan, 457 Deferred Compensation Plan, Profit
Sharing Plan, Money Purchase Pension Plan or a 401(k) Defined Contribution Plan
upon attainment of normal retirement age under the plan or upon separation from
service; (vi) periodic distributions from an IRA or SIMPLE IRA on or after
attainment of age 59; and (vii) distributions from an account if the redemption
results from the death of all registered owners of the account (in the case of
accounts established under the Uniform Gifts to Minors or Uniform Transfers to
Minors Acts or trust accounts, the waiver applies upon the death of all
beneficial owners) or a total and permanent disability (as defined in Section 72
of the Code) of all registered owners occurring after the purchase of the shares
being redeemed.

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DIVIDENDS AND DISTRIBUTIONS

Global Funds, Inc. declares a dividend on the Fund to all shareholders
of record of the Classes of that Fund at the time the offering price of shares
is determined. See Purchase Price and Effective Date under How to Buy Shares.
Thus, when redeeming shares, dividends continue to be credited up to and
including the date of redemption. The Fund will normally declare and make
payments from net investment income on a quarterly basis.

In addition to the dividends from net investment income and
distributions from realized securities profits that the Fund may declare and
make, as noted above, in order to satisfy certain distribution requirements of
the Tax Reform Act of 1986, the Fund may declare special year-end dividend and
capital gains distributions during October, November or December to shareholders
of record on a date in such month. Such distributions, if received by
shareholders by January 31, are deemed to have been paid by the Fund and
received by shareholders on the earlier of the date paid or December 31 of the
prior year.

Each Class of the Fund will share proportionately in the investment
income and expenses of the Fund, except that the per share dividends from net
investment income on Class A Shares, Class B Shares and Class C Shares will vary
due to the expenses under the 12b-1 Plan applicable to each Class. Generally,
the dividends per share on Class B Shares and Class C Shares can be expected to
be lower than the dividends per share on Class A Shares because the expenses
under the 12b-1 Plans relating to Class B Shares and Class C Shares will be
higher than the expenses under the 12b-1 Plan relating to Class A Shares. See
Distribution (12b-1) and Service under Management of the Fund.

Both dividends and distributions, if any, are automatically reinvested
in your account at net asset value, unless you elect otherwise. See The Delaware
Difference for more information on reinvestment options. Payment by check of
cash dividends will ordinarily be mailed within three business days after the
payable date. Payments from net realized securities profits of the Fund, if any,
will be distributed annually in the quarter following the close of the fiscal
year.

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TAXES

The Fund has qualified, and intends to continue to qualify, as a
regulated investment company under Subchapter M of the Code. As such, the Fund
will not be subject to federal income tax, or to any excise tax, to the extent
its earnings are distributed as provided in the Code.

The Fund intends to distribute substantially all of its net investment
income and net capital gains, if any. Dividends from net investment income or
net short-term capital gains will be taxable to those investors who are subject
to income taxes as ordinary income, whether received in cash or in additional
shares. It is expected that either none or only a nominal portion of the Fund's
dividends will be eligible for the dividends-received deductions for
corporations. The portion of dividends paid by the Fund that so qualifies will
be designated each year in a notice from the Fund to the Fund's shareholders.

Distributions paid by the Fund from long-term capital gains, whether
received in cash or in additional shares, are taxable to those investors who are
subject to income taxes as long-term capital gains, regardless of the length of
time an investor has owned shares in the Fund. The Fund does not seek to realize
any particular amount of capital gains during a year; rather, realized gains are
a by-product of Fund management activities. Consequently, capital gains
distributions may be expected to vary considerably from year to year. Also, for
those investors subject to tax, if purchases of shares in the Fund are made
shortly before the record date for a dividend or capital gains distribution, a
portion of the investment will be returned as a taxable distribution.

Although dividends generally will be treated as distributed when paid,
dividends which are declared in October, November, or December to shareholders
of record in such a month, but which, for operational reasons, may not be paid
to the shareholder until the following January, will be treated for tax purposes
as if paid by the Fund and received by the shareholder on December 31 of the
year declared.

The sale of shares of the Fund is a taxable event and may result in a
capital gain or loss to shareholders subject to tax. Capital gain or loss may be
realized from an ordinary redemption of shares or an exchange of shares between
the Fund and any other fund in the Delaware Group. Any loss incurred on a sale
or exchange of Fund shares that had been held for six months or less will be
treated as long-term capital loss to the extent of capital gains dividends
received with respect to such shares. All or a portion of the sales charge
incurred in acquiring the Fund's shares will be excluded from the federal tax
basis of any of such shares sold or exchanged within 90 days of their purchase
(for purposes of determining gain or loss upon sale of such shares) if the sale
proceeds are reinvested in the Fund or in another fund in the Delaware Group of
funds and a sales charge that would otherwise apply to the reinvestment is
reduced or eliminated. Any portion of such sales charge excluded from the tax
basis of the shares sold will be added to the tax basis of the shares acquired
in the reinvestment.

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The Fund may be subject to foreign withholding taxes on income from
certain of its foreign securities. If more than 50% in value of the total assets
of the Fund at the end of its fiscal year are invested in securities of foreign
corporations, the Fund may elect to pass-through to its shareholders a pro-rata
share of foreign income taxes paid by the Fund. If this election is made,
shareholders will be (i) required to include in their gross income their
pro-rata share of foreign source income (including any foreign taxes paid by the
Fund), and (ii) entitled to either deduct (as an itemized deduction in the case
of individuals) their share of such foreign taxes in computing their taxable
income or to claim a credit for such taxes against their U.S. income tax,
subject to certain limitations under the Code. Shareholders will be informed by
the Fund at the end of each calendar year regarding the availability of any
credits on and the amount of foreign source income to be included in their
income tax returns.

In addition to federal taxes, shareholders may be subject to state and
local taxes on distributions. Distributions of interest income and capital gains
realized from certain types of U.S. government securities may be exempt from
state personal income taxes. Shares of the Fund are exempt from Pennsylvania
county personal property taxes.

Each year, Global Funds, Inc. will mail to you information on the tax
status of the dividends and distributions paid by the Fund. Shareholders will
also receive each year information as to the portion of dividend income, if any,
that is derived from U.S. government securities that are exempt from state
income tax. Of course, shareholders who are not subject to tax on their income
would not be required to pay tax on amounts distributed to them by the Fund.

See Accounting and Tax Issues and Distributions and Taxes in Part B for
additional information on tax matters relating to the Fund and its shareholders.

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CALCULATION OF OFFERING PRICE AND NET ASSET VALUE PER SHARE

The net asset value ("NAV") per share is computed by adding the value
of all securities and other assets in the Fund's portfolio, deducting any
liabilities of the Fund (expenses and fees are accrued daily) and dividing by
the number of the Fund's shares outstanding. Portfolio securities for which
market quotations are available are priced at market value. Debt securities are
priced at fair value by an independent pricing service using methods approved by
Global Funds, Inc.'s Board of Directors. Short-term investments having a
maturity of less than 60 days are valued at amortized cost, which approximates
market value. All other securities are valued at their fair value as determined
in good faith and in a method approved by Global Funds, Inc.'s Board of
Directors.

The offering price and NAV are computed as of the close of regular
trading on the New York Stock Exchange (ordinarily, 4 p.m., Eastern time) on
days when the Exchange is open.

The Fund's portfolio securities, from time to time, may be listed
primarily on foreign exchanges which trade on days when the New York Stock
Exchange is closed (such as Saturday). As a result, the net asset value of the
Fund may be significantly affected by such trading on days when shareholders
have no access to the Fund.

The net asset values of all outstanding shares of each class of the
Fund will be computed on a pro-rata basis for each outstanding share based on
the proportionate participation in the Fund represented by the value of shares
of that class. All income earned and expenses incurred by the Fund will be borne
on a pro-rata basis by each outstanding share of a class, based on each class'
percentage in the Fund represented by the value of shares of such classes,
except that International Equity Fund Institutional Class, will not incur any of
the expenses under Global Funds, Inc.'s 12b-1 Plans, and Class A, Class B and
Class C Shares of the Fund alone will bear the 12b-1 Plan expenses payable under
their respective Plans. Due to the specific distribution expenses and other
costs that will be allocable to each class, the NAV of each class of the Fund
will vary.

-48-
<PAGE>

(GLOBAL-IEF-ABC)

MANAGEMENT OF THE FUND

Investment Manager
Delaware International Advisers Ltd. ("Delaware International" or the
"Manager") furnishes investment management services to the Fund. Delaware
International is affiliated with Delaware Management Company, Inc. ("Delaware").
The Manager has offices located at Veritas House, 125 Finsbury Pavement, London,
England EC2A 1NQ.

Delaware and its predecessors have been managing the funds in the
Delaware Group since 1938. On April 30, 1997, Delaware and its affiliates,
including Delaware International, were managing in the aggregate
more than $32 billion in assets in various institutional or separately managed
(approximately $20,677,606,000) and investment company (approximately
$11,935,210,000) accounts.

Delaware is an indirect, wholly owned subsidiary of Delaware Management
Holdings, Inc. ("DMH"). Delaware International is also controlled by DMH through
several subsidiaries. On April 3, 1995, a merger between DMH and a wholly owned
subsidiary of Lincoln National Corporation ("Lincoln National") was completed.
DMH, Delaware and the Manager are now indirect, wholly owned subsidiaries, and
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. In connection with the merger, a new
Investment Management Agreement between Global Funds, Inc., on behalf of
International Equity Fund, and the Manager, was executed following shareholder
approval.

The Manager manages the Fund's investments and for its services, the
Manager is paid an annual fee equal to 0.75% of the Fund's average daily net
assets, less a proportionate share of all directors' fees paid to the
unaffiliated directors by the Fund.

Beginning December 1, 1995, Delaware International elected voluntarily
to waive that portion, if any, of the annual management fees payable by
International Equity Fund and to reimburse expenses to the extent necessary to
ensure that the Total Operating Expenses (exclusive of taxes, interest,
brokerage commissions and extraordinary expenses, but inclusive of 12b-1
expenses) of Class A Shares of the Fund do not exceed 1.85% and each of the
Class B Shares and Class C Shares of the Fund do not exceed 2.55% through
November 30, 1996. This voluntary waiver has been extended through November 30,
1997. From June 1, 1994 through November 30, 1994, Delaware International
elected voluntarily to waive that portion, if any, of the annual management fees
payable by International Equity Fund and to reimburse expenses to the extent
necessary to ensure that the Total Operating Expenses (exclusive of taxes,
interest, brokerage commissions, extraordinary expenses and 12b-1 expenses) of
Class A Shares of this Fund did not exceed 1.50%. Through November 30, 1994,
this waiver and reimbursement noted above also applied to Class B Shares of this
Fund. Prior to June 1, 1994, a waiver and reimbursement commitment was in place
to ensure expenses of Class A Shares of International Equity Fund did not exceed
1.25% (exclusive of taxes, interest brokerage commissions and extraordinary
expenses, but inclusive of 12b-1 fees).

-49-
<PAGE>
(GLOBAL-IEF-ABC)

The investment management fees payable to Delaware International by the
Fund, while higher than the advisory fees paid by other mutual funds in general,
are comparable to fees paid by other mutual funds with similar objectives and
policies.

The investment management fees earned for the fiscal year ended
November 30, 1996 were 0.75% of average daily net assets, and 0.64% was paid by
International Equity Fund as a result of the voluntary waiver described above.

Clive A. Gillmore has primary responsibility for making day-to-day
investment decisions for the Fund. He has been the senior portfolio manager for
the Fund since its inception. A graduate of the University of Warwick and having
begun his career at Legal and General Investment Management, Mr. Gillmore joined
the Delaware Group in 1990 after eight years of investment experience. His most
recent position prior to joining the Delaware Group was as a Pacific Basin
equity analyst and senior portfolio manager for Hill Samuel Investment Advisers
Ltd. Mr. Gillmore completed the London Business School Investment program.

In making investment decisions for the Fund, Mr. Gillmore regularly
consults with an international equity team of nine members, five of whom
research the Pacific Basin and four of whom research the European Markets. Mr.
Gillmore also regularly consults with David G. Tilles. Mr. Tilles, who is Chief
Investment Officer for Delaware International, is a graduate of the University
of Warwick with a BS in management sciences. Before joining the Delaware Group
in 1990, he was Chief Investment Officer of Hill Samuel Investment Advisers Ltd.
He is a member of the Institute of Investment Management & Research and the
Operational Research Society.

Portfolio Trading Practices
The Fund normally will not invest for short-term trading purposes.
However, the Fund may sell securities without regard to the length of time they
have been held. The degree of portfolio activity will affect brokerage costs of
the Fund and may affect taxes payable by the Fund's shareholders to the extent
that net capital gains are realized. Given the Fund's investment objective, it
is anticipated that the portfolio turnover rate of the Fund will not exceed
100%. During the past two fiscal years, the Fund's portfolio turnover rates were
21% for 1995 and 9% for 1996.

The Manager uses its best efforts to obtain the best available price
and most favorable execution for portfolio transactions. Orders may be placed
with brokers or dealers who provide brokerage and research services to the
Manager or its advisory clients. These services may be used by the Manager in
servicing any of its respective accounts. Subject to best price and execution,
the Manager may consider a broker/dealer's sales of shares of funds in the
Delaware Group of funds in placing portfolio orders and may place orders with
broker/dealers that have agreed to defray certain expenses of such funds, such
as custodian fees.

-50-
<PAGE>
(GLOBAL-IEF-ABC)

Performance Information
From time to time, the Fund may quote total return performance of its
Classes in advertising and other types of literature. Total return will be based
on a hypothetical $1,000 investment, reflecting the reinvestment of all
distributions at net asset value and: (i) in the case of Class A Shares, the
impact of the maximum front-end sales charge at the beginning of each specified
period; and (ii) in the case of Class B Shares and Class C Shares, the deduction
of any applicable CDSC at the end of the relevant period. Each presentation will
include the average annual total return for one-, five- and ten-year or life of
fund periods, as relevant. The Fund may also advertise aggregate and average
total return information concerning a Class over additional periods of time. In
addition, the Fund may present total return information that does not reflect
the deduction of the maximum front-end sales charge or any applicable CDSC. In
this case, such total return information would be more favorable than total
return information that includes deductions of the maximum front-end sales
charge or any applicable CDSC.

Because securities prices fluctuate, investment results of the Classes
will fluctuate over time. Past performance is not considered a guarantee of
future results.

Distribution (12b-1) and Service
The Distributor, Delaware Distributors, L.P., serves as the national
distributor for the Fund under separate Distribution Agreements with Global
Funds, Inc. dated April 3, 1995, as amended on November 29, 1995.

Global Funds, Inc. has adopted a separate distribution plan under Rule
12b-1 for each of the Class A Shares, Class B Shares and Class C Shares of the
Fund (the "Plans"). Each Plan permits the Fund to pay the Distributor from the
assets of its respective Classes a monthly fee for the Distributor's services
and expenses in distributing and promoting sales of shares.

These expenses include, among other things, preparing and distributing
advertisements, sales literature, and prospectuses and reports used for sales
purposes, compensating sales and marketing personnel, holding special promotions
for specified periods of time, and paying distribution and maintenance fees to
brokers, dealers and others. In connection with the promotion of shares of the
Classes, the Distributor may, from time to time, pay to participate in
dealer-sponsored seminars and conferences, and reimburse dealers for expenses
incurred in connection with preapproved seminars, conferences and advertising.
The Distributor may pay or allow additional promotional incentives to dealers as
part of preapproved sales contests and/or to dealers who provide extra training
and information concerning a Class and increase sales of the Class. In addition,
the Fund may make payments from the 12b-1 Plan fees of its respective Classes
directly to others, such as banks, who aid in the distribution of Class shares
or provide services in respect of such Classes, pursuant to service agreements
with Global Funds, Inc.

The 12b-1 Plan expenses relating to each of the Class B Shares and
Class C Shares of the Fund are also used to pay the Distributor for advancing
the commission costs to dealers with respect to the initial sale of such shares.

The aggregate fees paid by the Fund from the assets of the respective
Classes to the Distributor and others under the Plans may not exceed (i) 0.30%
of a Class A Shares' average daily net assets in any year, and (ii) 1% (0.25% of
which are service fees to be paid by the Fund to the Distributor, dealers and
others, for providing personal service and/or maintaining shareholder accounts)
of the Fund's Class B Shares' and the Class C Shares' average daily net assets

-51-
<PAGE>
(GLOBAL-IEF-ABC)

in any year. The Fund's Class A, Class B and Class C Shares will not incur any
distribution expenses beyond these limits, which may not be increased without
shareholder approval.

While payments pursuant to the Plans may not exceed 0.30% annually with
respect to Class A Shares, and 1% annually with respect to each of the Class B
Shares and Class C Shares, the Plans do not limit fees to amounts actually
expended by the Distributor. It is therefore possible that the Distributor may
realize a profit in any particular year. However, the Distributor currently
expects that its distribution expenses will likely equal or exceed payments to
it under the Plans. The Distributor may, however, incur such additional expenses
and make additional payments to dealers from its own resources to promote the
distribution of shares of the Classes. The monthly fees paid to the Distributor
under the Plans are subject to the review and approval of Global Funds, Inc.'s
unaffiliated directors, who may reduce the fees or terminate the Plans at any
time.

The Plans do not apply to International Equity Fund Institutional Class
of shares of the Fund. Those shares are not included in calculating the Plans'
fees, and the Plans are not used to assist in the distribution and marketing of
the shares of International Equity Fund Institutional Class.

The Distributor and the Transfer Agent are also indirect, wholly owned
subsidiaries of DMH.

Expenses
The Fund is responsible for all of its own expenses other than those
borne by the Manager under the Investment Management Agreement and those borne
by the Distributor under the Distribution Agreement. For the fiscal year ended
November 30, 1996, the ratio of operating expenses to average daily net assets
for Class A Shares, Class B Shares and Class C Shares of International Equity
Fund were 1.85%, 2.55% and 2.55%, respectively. The ratios reflect the impact of
each Class' 12b-1 Plan and the voluntary waiver and payment of fees noted above.

Shares
Global Funds, Inc. is an open-end management investment company.
Commonly known as a mutual fund, Global Funds, Inc. was organized as a Maryland
corporation on May 30, 1991. Global Funds, Inc. currently offers six series of
shares - International Equity Series, International Small Cap Series, Global
Bond Series, Global Assets Series, Emerging Markets Series and Global Equity
Series. Fund shares have a par value of $.01 and when issued will be fully paid,
non-assessable, fully transferable and redeemable at the option of the holder.
The shares have no preference as to conversion, exchange, dividends, retirement
or other features and have no preemptive rights. The Fund will vote separately
on any matter which affects only that Fund. Shares of the Fund have a priority
over shares of any other fund of Global Funds, Inc. in the assets and income of
that Fund.

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<PAGE>
(GLOBAL-IEF-ABC)

In addition to Class A Shares, Class B Shares and Class C Shares,
International Equity Fund offers International Equity Fund Institutional Class.
Shares of each Class represent proportionate interests in the assets of the Fund
and have the same voting and other rights and preferences as the other classes
of the Fund, except that shares of International Equity Fund Institutional
Class, are not subject to, and may not vote on matters affecting, the
Distribution Plans under Rule 12b-1 relating to Class A, Class B and Class C
Shares. Similarly, as a general matter, the shareholders of Class A Shares,
Class B Shares and Class C Shares may vote only on matters affecting the 12b-1
Plan that relates to the class of shares that they hold. However, Class B Shares
of the Fund may vote on any proposal to increase materially the fees to be paid
by the Fund under the 12b-1 Plan relating to Class A Shares.

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<PAGE>

(GLOBAL-IEF-ABC)

OTHER INVESTMENT POLICIES AND RISK CONSIDERATIONS

Repurchase Agreements
The Fund also may use repurchase agreements that are at least 100%
collateralized by securities in which the Fund can invest directly, including
securities issued or guaranteed by the U.S. Government or its agencies or
instrumentalities. Repurchase agreements help the Fund to invest cash on a
temporary basis. The Fund may invest cash balances in joint repurchase
agreements with other Delaware Group funds. Under a repurchase agreement, the
Fund acquires ownership and possession of a security, and the seller agrees to
buy the security back at a specified time and higher price. Repurchase
agreements involve the risks of loss if a seller defaults on its obligations
under the agreements. If the seller is unable to repurchase the security, the
Fund could experience delays in liquidating the securities. To minimize this
possibility, the Manager, pursuant to direction from the Global Funds, Inc.'s
Board of Directors, considers the creditworthiness of banks and dealers when
entering into repurchase agreements.

Portfolio Loan Transactions
The Fund may loan up to 25% of its assets to qualified broker/dealers
or institutional investors for their use relating to short sales or other
security transactions.

The major risk to which the Fund would be exposed on a loan transaction
is the risk that the borrower would go bankrupt at a time when the value of the
security goes up, and the borrower would fail to return the borrowed security.
Therefore, the Fund will only enter into loan arrangements after a review of all
pertinent facts by the Manager, subject to overall supervision by the Board of
Directors, including the creditworthiness of the borrowing broker, dealer or
institution and then only if the consideration to be received from such loans
would justify the risk. In addition, the Fund will require borrowers to deliver
collateral to the Fund before lending securities. Creditworthiness will be
monitored on an ongoing basis by the Manager.

Borrowings
The Fund may borrow money as a temporary measure for extraordinary
purposes or to facilitate redemptions. The Fund will not borrow money in excess
of one-third of the value of its net assets. The Fund has no intention of
increasing its net income through borrowing. Any borrowing will be done from a
bank and, to the extent that such borrowing exceeds 5% of the value of the
Fund's net assets, asset coverage of at least 300% is required. In the event
that such asset coverage shall at any time fall below 300%, the Fund shall,
within three days thereafter (not including Sunday or holidays) or such longer
period as the U.S. Securities and Exchange Commission may prescribe by rules and
regulations, reduce the amount of its borrowings to such an extent that the
asset coverage of such borrowings shall be at least 300%. The Fund will not
pledge more than 10% of its net assets, or issue senior securities as defined in
the 1940 Act, except for notes to banks. Investment securities will not be
purchased while the Fund has an outstanding borrowing.

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<PAGE>
(GLOBAL-IEF-ABC)

Restricted and Illiquid Securities
The Fund may invest in restricted securities, including securities
eligible for resale without registration pursuant to Rule 144A ("Rule 144A
Securities") under the Securities Act of 1933. Rule 144A permits many privately
placed and legally restricted securities to be freely traded among certain
institutional buyers, such as the Fund. See Rule 144A Securities, below. The
Fund may invest no more than 10% of the value of its net assets in illiquid
securities. In the event this percentage limitation is exceeded, whether due to
changes in the market value of the Fund's illiquid holdings or because a
particular security is deemed to have become illiquid, the Manager will take
steps to remedy these circumstances in an orderly fashion.

Rule 144A Securities
While maintaining oversight, the Board of Directors of Global Funds,
Inc. has delegated to the Manager the day-to-day functions of determining
whether or not individual Rule 144A Securities are liquid for purposes of the
Fund's 10% limitation on investments in illiquid assets. The Board has
instructed the Manager to consider the following factors in determining the
liquidity of a Rule 144A Security: (i) the frequency of trades and trading
volume for the security; (ii) whether at least three dealers are willing to
purchase or sell the security and the number of potential purchasers; (iii)
whether at least two dealers are making a market in the security; and (iv) the
nature of the security and the nature of the marketplace trades (e.g., the time
needed to dispose of the security, the method of soliciting offers, and the
mechanics of transfer).

If the Manager determines that a Rule 144A Security which was
previously determined to be liquid is no longer liquid and, as a result, the
Fund's holdings of illiquid securities exceed the Fund's 10% limitation on
investments in such securities, the Manager will determine what action to take
to ensure that the Fund continues to adhere to its respective limitation.

Investment Company Securities
Any investments that the Fund makes in closed-end investment companies
will be limited by the 1940 Act, and would involve an indirect payment of a
portion of the expenses, including advisory fees, of such other investment
companies. Under the 1940 Act's limitations, the Fund may not (1) own more than
3% of the voting stock of another investment company; (2) invest more than 5% of
the Fund's total assets in the shares of any one investment company; nor (3)
invest more than 10% of the Fund's total assets in shares of other investment
companies.

Foreign Currency Transactions
Although the Fund values its assets daily in terms of U.S. dollars, it
does not intend to convert its holdings of foreign currencies into U.S. dollars
on a daily basis. The Fund will, however, from time to time, purchase or sell
foreign currencies and/or engage in forward foreign currency transactions in
order to expedite settlement of portfolio transactions and to minimize currency
value fluctuations. The Fund may conduct its foreign currency exchange
transactions on a spot (i.e., cash) basis at the spot rate prevailing in the
foreign currency exchange market or through entering into contracts to purchase
or sell foreign currencies at a future date (i.e., a "forward foreign currency"
contract or "forward" contract). A forward contract involves an obligation to
purchase or sell a specific currency at a future date, which may be any fixed
number of days from the date of the contract, agreed upon by the parties, at a
price set at the time of the contract. The Fund will convert currency on a spot
basis from time to time, and investors should be aware of the costs of currency
conversion.

-55-
<PAGE>
(GLOBAL-IEF-ABC)

The Fund may enter into forward contracts to "lock in" the price of a
security it has agreed to purchase or sell, in terms of U.S. dollars or other
currencies in which the transaction will be consummated. By entering into a
forward contract for the purchase or sale, for a fixed amount of U.S. dollars or
foreign currency, of the amount of foreign currency involved in the underlying
security transaction, the Fund will be able to protect itself against a possible
loss resulting from an adverse change in currency exchange rates during the
period between the date the security is purchased or sold and the date on which
payment is made or received.

When the Manager believes that the currency of a particular country may
suffer a significant decline against the U.S. dollar or against another
currency, the Fund may enter into a forward foreign currency contract to sell,
for a fixed amount of U.S. dollars or other appropriate currency, the amount of
foreign currency approximating the value of some or all of the Fund's securities
denominated in such foreign currency.

The Fund will not enter into forward contracts or maintain a net
exposure to such contracts where the consummation of the contracts would
obligate the Fund to deliver an amount of foreign currency in excess of the
value of the Fund's securities or other assets denominated in that currency.

At the maturity of a forward contract, the Fund may either sell the
portfolio security and make delivery of the foreign currency, or it may retain
the security and terminate its contractual obligation to deliver the foreign
currency by purchasing an "offsetting" contract with the same currency trader
obligating it to purchase, on the same maturity date, the same amount of the
foreign currency. The Fund may realize a gain or loss from currency
transactions.

The Fund also may purchase and write put and call options on foreign
currencies (traded on U.S. and foreign exchanges or over-the-counter) for
hedging purposes to protect against declines in the U.S. dollar cost of foreign
securities held by the Fund and against increases in the U.S. dollar cost of
such securities to be acquired. Call options on foreign currency written by the
Fund will be covered, which means that the Fund will own the underlying foreign
currency. With respect to put options on foreign currency written by the Fund,
the Fund will establish a segregated account with its Custodian Bank consisting
of cash, U.S. government securities or other high-grade liquid debt securities
in an amount equal to the amount the Fund will be required to pay upon exercise
of the put.

As in the case of other kinds of options, the writing of an option on
foreign currency will constitute only a partial hedge, up to the amount of the
premium received, and the Fund could be required to purchase or sell foreign
currencies at disadvantageous exchange rates, thereby incurring losses. The
purchase of an option on foreign currency may constitute an effective hedge
against fluctuations in exchange rates, although, in the event of rate movements
adverse to the Fund's position, the Fund may forfeit the entire amount of the
premium plus related transaction costs. See Special Risk Considerations.

Options
The Manager may employ options techniques in an attempt to protect
appreciation attained and to take advantage of the liquidity available in the
options market. The Fund may purchase call options on foreign or U.S. securities
and indices and enter into related closing transactions. The Fund may also
purchase put options on such securities and indices and enter into related
closing transactions.

-56-
<PAGE>
(GLOBAL-IEF-ABC)

A call option enables the purchaser, in return for the premium paid, to
purchase securities from the writer of the option at an agreed price up to an
agreed date. The advantage is that the purchaser may hedge against an increase
in the price of securities it ultimately wishes to buy or take advantage of a
rise in a particular index. The Fund will only purchase call options to the
extent that premiums paid on all outstanding call options do not exceed 2% of
its total assets.

A put option enables the purchaser of the option, in return for the
premium paid, to sell the security underlying the option to the writer at the
exercise price during the option period, and the writer of the option has the
obligation to purchase the security from the purchaser of the option. The Fund
will only purchase put options to the extent that the premiums on all
outstanding put options do not exceed 2% of its total assets. The advantage is
that the purchaser can be protected should the market value of the security
decline or should a particular index decline.

Closing transactions essentially let the Fund offset put options or
call options prior to exercise or expiration. If the Fund cannot effect closing
transactions, it may have to hold a security it would otherwise sell or deliver
a security it might want to hold.

In purchasing put and call options, the premium paid by the Fund plus
any transaction costs will reduce any benefit realized by the Fund upon exercise
of the option.

The Fund may use both Exchange-traded and over-the-counter options.
Certain over-the-counter options may be illiquid. The Fund will only invest in
such options to the extent consistent with its 10% limitation on investment in
illiquid securities. The Fund will comply with U.S. Securities and Exchange
Commission asset segregation and coverage requirements when engaging in these
types of transactions.

Futures Contracts and Options on Futures Contracts
The principal purpose of the purchase or sale of futures contracts for
the Fund is to protect the Fund against the fluctuations in interest or exchange
rates which otherwise might adversely affect the value of the Fund's portfolio
securities or adversely affect the prices of securities which the Fund intends
to purchase at a later date without actually buying or selling such securities.

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<PAGE>

(GLOBAL-IEF-ABC)

of initial margin deposits and premiums paid for open futures options would
exceed 5% of the Fund's total assets, after taking into account unrealized
profits and unrealized losses on such contracts it has entered into; provided,
however, that, in the case of an option that is in-the-money at the time of
purchase, the in-the-money amount may be excluded in calculating the 5%.

The Fund may also purchase and write options to buy or sell futures
contracts. Options on futures are similar to options on securities except that
options on futures give the purchaser the right, in return for the premium paid,
to assume a position in a futures contract, rather than actually to purchase or
sell the futures contract, at a specified exercise price at any time during the
period of the option. When the Fund enters into a futures transaction, it must
deliver to the futures commission merchant selected by the Fund an amount
referred to as "initial margin." This amount is maintained by the futures
commission merchant in an account at the Custodian Bank. Thereafter, a
"variation margin" may be paid by the Fund to, or drawn by the Fund from, such
account in accordance with controls set for such accounts, depending upon
changes in the price of the underlying securities subject to the futures
contract.

To the extent that interest or exchange rates or securities prices move
in an unexpected direction, the Fund may not achieve the anticipated benefits of
investing in futures contracts and options thereon, or may realize a loss. To
the extent that the Fund purchases an option on a futures contract and fails to
exercise the option prior to the exercise date, it will suffer a loss of the
premium paid. Further, the possible lack of a secondary market could prevent the
Fund from closing out its positions relating to futures.

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(GLOBAL-IEF-ABC)

APPENDIX A
International Equity Fund
Illustrations of Hypothetical Returns on Investments Based on Purchase Option
$10,000 Purchase
<TABLE>
<CAPTION>

Scenario 1 Scenario 2
No Redemption Redeem 1st Year
--------------------------------------- --------------------------------------
Year Class A Class B Class C Class A Class B Class C
-------- --------- ------- -------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
0 9,525 10,000 10,000 9,525 10,000 10,000
1 10,478 10,930 10,930 10,478 10,530 10,830+
2 11,525 11,946 11,946
3 12,678 13,058 13,058
4 13,946 14,272 14,272
5 15,340 15,599 15,599
6 16,874 17,050 17,050
7 18,562 18,636 18,636
8 20,418+ 20,369 20,369
9 22,459 22,405* 22,263
10 24,705 24,646* 24,333

</TABLE>

Scenario 3 Scenario 4
Redeem 3rd Year Redeem 5th Year
------------------------------------- -------------------------------------
Class A Class B Class C Class A Class B Class C
-------- -------- ------- ------- ------- --------
<S> <C> <C> <C> <C> <C>
9,525 10,000 10,000 9,525 10,000 10,000
10,478 10,930 10,930 10,478 10,930 10,930
11,525 11,946 11,946 11,525 11,946 11,946
12,678 12,758 13,058+ 12,678 13,058 13,058
13,946 14,272 14,272
15,340 15,399 15,599+
</TABLE>

* This assumes that Class B Shares were converted to Class A Shares at the
end of the eighth year.

<PAGE>

$250,000 Purchase
<TABLE>
<CAPTION>

Scenario 1 Scenario 2
No Redemption Redeem 1st Year
---------------------------------------- -------------------------------------
Year Class A Class B Class C Class A Class B Class C
------ --------- ------- --------- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
0 243,750 250,000 250,000 243,750 250,000 250,000
1 268,125 273,250 273,250 268,125 263,250 270,750+
2 294,938 298,662 298,662
3 324,431 326,438 326,438
4 356,874+ 356,797 356,797
5 392,562 389,979 389,979
6 431,818 426,247 426,247
7 475,000 465,888 465,888
8 522,500 509,215 509,215
9 574,750 560,137* 556,572
10 632,225 616,150* 608,333

</TABLE>

Scenario 3 Scenario 4
Redeem 3rd Year Redeem 5th Year
------------------------------------ ---------------------------------------
Class A Class B Class C Class A Class B Class C
------- ------- ------- ------- ------- --------
<S> <C> <C> <C> <C> <C>
243,750 250,000 250,000 243,750 250,000 250,000
268,125 273,250 273,250 268,125 273,250 273,250
294,938 298,662 298,662 294,938 298,662 298,662
324,431 318,938 326,438+ 324,431 326,438 326,438
356,874+ 356,797 356,797
392,562 384,979 389,979
</TABLE>

* This assumes that Class B Shares were converted to Class A Shares at the end
of the eighth year.

Assumes a hypothetical return for Class A of 10% per year, a hypothetical
return for Class B of 9.3% for years 1-8 and 10% for years 9-10, and a
hypothetical return for Class C of 9.3% per year.
Hypothetical returns vary due to the different expense structure for each Class
and do not represent actual performance.
Class A purchase subject to appropriate sales charge breakpoint (4.75% @
$10,000; 3.75% @ $100,000; 2.50% @ $250,000).
Class B purchase assessed appropriate CDSC upon redemption (4%-4%-3%-3%-2%-1%
in years 1-2-3-4-5-6).
Class C purchase assessed 1% CDSC upon redemption in year 1. Figures marked "+"
identify which Class offers the greater return potential based on the investment
amount, the holding period and the expense structure of each Class.

<PAGE>

(GLOBAL-IEF-ABC)

APPENDIX B -- CLASSES OFFERED
<TABLE>
<CAPTION>

Growth of Capital A Class B Class C Class Consultant Class
<S> <C> <C> <C> <C>
Aggressive Growth Fund x x x -
Trend Fund x x x -
Enterprise Fund x x x -
DelCap Fund x x x -
Value Fund x x x -
U.S. Growth Fund x x x -
Growth Stock Fund x x x -
Tax-Efficient Equity Fund x x x -

Total Return
Blue Chip Fund x x x -
Quantum Fund x x x -
Devon Fund x x x -
Decatur Total Return Fund x x x -
Decatur Income Fund x x x -
Delaware Fund x x x -

International Diversification
Emerging Markets Fund x x x -
New Pacific Fund x x x -
World Growth Fund x x x -
International Equity Fund x x x -
Global Assets Fund x x x -
Global Bond Fund x x x -

(Not Part of Prospectus)

<PAGE>

(GLOBAL-IEF-ABC)

APPENDIX B--CLASSES OFFERED - (CON'T)
<TABLE>
<CAPTION>

Money Market Funds
Delaware Cash Reserve x x x x
U.S. Government Money Fund x - - x
Tax-Free Money Fund x - - x

</TABLE>

(Not Part of Prospectus)

<PAGE>
(GLOBAL-IEF-ABC)

The Delaware Group includes funds with a wide range of investment objectives.
Stock funds, income funds, national and state-specific tax-free funds, money
market funds, global and international funds and closed-end equity funds give
investors the ability to create a portfolio that fits their personal financial
goals. For more information, contact your financial adviser or call Delaware
Group at 800-523-4640.

INVESTMENT MANAGER
Delaware International Advisers Ltd.
Veritas House
125 Finsbury Pavement
London, England EC2A 1NQ

NATIONAL DISTRIBUTOR
Delaware Distributors, L.P.
1818 Market Street
Philadelphia, PA 19103

SHAREHOLDER SERVICING,
DIVIDEND DISBURSING,
ACCOUNTING SERVICES
AND TRANSFER AGENT
Delaware Service Company, Inc.
1818 Market Street
Philadelphia, PA 19103

LEGAL COUNSEL
Stradley, Ronon, Stevens & Young, LLP
One Commerce Square
Philadelphia, PA 19103

INDEPENDENT AUDITORS
Ernst & Young LLP
Two Commerce Square
Philadelphia, PA 19103

CUSTODIAN
The Chase Manhattan Bank
4 Chase Metrotech Center
Brooklyn, NY 11245

<PAGE>

- ---------------------------------------------------------

INTERNATIONAL EQUITY FUND

- ---------------------------------------------------------

A CLASS
- ---------------------------------------------------------

B CLASS
- ---------------------------------------------------------

C CLASS
- ---------------------------------------------------------

P R O S P E C T U S

- ---------------------------------------------------------

JULY 21, 1997

DELAWARE
GROUP
============

<PAGE>

(GLOB-ABC-GEF)

GLOBAL EQUITY FUND PROSPECTUS
A CLASS SHARES JULY 21, 1997
B CLASS SHARES
C CLASS SHARES

- --------------------------------------------------------------------------------

1818 Market Street, Philadelphia, PA 19103

For Prospectus and Performance:
Nationwide 800-523-4640

Information on Existing Accounts:
(SHAREHOLDERS ONLY)
Nationwide 800-523-1918

Dealer Services:
(BROKER/DEALERS ONLY)
Nationwide 800-362-7565

Representatives of Financial Institutions:
Nationwide 800-659-2265

This Prospectus describes shares of the Global Equity Series ("Global
Equity Fund" or the "Fund") of Delaware Group Global & International Funds, Inc.
("Global Funds, Inc."), a professionally-managed mutual fund of the series type.

The investment objective of the Fund is to achieve long-term growth
without undue risk to principal. The Fund seeks to achieve this objective by
investing in global securities that provide the potential for capital
appreciation and income.

The Fund offers three retail classes of shares: "Class A Shares",
"Class B Shares" and "Class C Shares" (individually, a "Class" and collectively,
the "Classes"). These alternatives permit an investor to choose the method of
purchasing shares that is most suitable to his or her needs.

-1-

<PAGE>

The Fund also offers Global Equity Fund Institutional Class, which is
available for purchase only by certain investors. A prospectus for Global Equity
Fund Institutional Class can be obtained by writing to Delaware Distributors,
L.P. at the above address or by calling the above numbers.

TABLE OF CONTENTS

Cover Page How to Buy Shares
Synopsis Redemption and Exchange
Summary of Expenses Dividends and Distributions
Investment Objective and Policies Taxes
Suitability Calculation of Offering Price and
Investment Strategy Net Asset Value Per Share
Special Risk Considerations Management of the Fund
The Delaware Difference Other Investment Policies and
Plans and Services Risk Considerations
Retirement Planning Appendix A--Investment Illustrations
Classes of Shares Appendix B--Classes Offered

-2-

<PAGE>

(GLOB-ABC-GEF)

SYNOPSIS

Investment Objective
The investment objective of the Fund is to achieve long-term growth
without undue risk to principal. The Fund seeks to achieve this objective by
investing in global equity securities that provide the potential for capital
appreciation and income. The Fund is a global fund. As such, at least 65% of the
Fund's total assets will be invested in equity securities of issuers organized
or having a majority of their assets in or deriving a majority of their income
in at least three different countries, one of which may be the United States.
For further details, see Investment Objective and Policies and Other Investment
Policies and Risk Considerations.

Risk Factors and Special Considerations
Prospective investors should consider a number of factors:

2. The Fund has the right to engage in options and futures transactions
for hedging purposes, to counterbalance portfolio volatility. In connection with
futures transactions, the Fund will maintain certain collateral in special
accounts established with futures commission merchants directly or for their
benefit in the care of The Chase Manhattan Bank (the "Custodian Bank"). While
the Fund does not engage in options and futures for speculative purposes, there
are risks which result from the use of these instruments, and an investor should
carefully review the descriptions of these risks in this Prospectus. See Options
and Futures Contracts and Options on Futures Contracts under Other Investment
Policies and Risk Considerations.

Investment Manager, Distributor and Service Agent
Delaware International Advisers Ltd. ("Delaware International" or the
"Manager") is the investment manager for the Fund and, in that capacity,
provides investment advice to the Fund, subject to the supervision of Global
Funds, Inc.'s Board of Directors. Delaware Management Company, Inc. ("Delaware"
or the "Sub-Adviser") is the investment sub-adviser for the Fund and, in that
capacity, provides investment advice relating to U.S. securities. Delaware
Distributors, L.P. (the "Distributor") is the national distributor for the Fund
and for all of the other mutual funds in the Delaware Group. Delaware Service
Company, Inc. (the "Transfer Agent") is the shareholder servicing, dividend
disbursing, accounting services and transfer agent for the Fund and for all of
the other mutual funds in the Delaware Group. See Summary of Expenses and
Management of the Fund for further information regarding the Manager and the
Sub-Adviser and the fees payable under the Fund's Investment Management
Agreement and the Sub-Advisory Agreement on behalf of the Fund.

-3-

<PAGE>

(GLOB-ABC-GEF)

Sales Charges
The price of Class A Shares includes a maximum front-end sales charge
of 4.75% of the offering price, which is equivalent to 4.94% of the amount
invested, based on an initial net asset value of $8.50 per share. The front-end
sales charge is reduced on certain transactions of at least $100,000 but under
$1,000,000. For purchases of $1,000,000 or more, the front-end sales charge is
eliminated. Class A Shares are subject to annual 12b-1 Plan expenses for the
life of the investment.

The price of Class B Shares is equal to the net asset value per share.
Class B Shares are subject to a contingent deferred sales charge ("CDSC") of:
(i) 4% if shares are redeemed within two years of purchase; (ii) 3% if shares
are redeemed during the third or fourth year following purchase; (iii) 2% if
shares are redeemed during the fifth year following purchase; and (iv) 1% if
shares are redeemed during the sixth year following purchase. Class B Shares are
subject to annual 12b-1 Plan expenses for approximately eight years after
purchase. See Deferred Sales Charge Alternative - Class B Shares and Automatic
Conversion of Class B Shares under Classes of Shares.

The price of Class C Shares is equal to the net asset value per share.
Class C Shares are subject to a CDSC of 1% if shares are redeemed within 12
months of purchase. Class C Shares are subject to annual 12b-1 Plan expenses for
the life of the investment.

See Classes of Shares and Distribution (12b-1) and Service under
Management of the Fund.

Purchase Amounts
Generally, the minimum initial investment in any Class is $1,000.
Subsequent investments generally must be at least $100.

Class B Shares and Class C Shares may be redeemed or exchanged at the
net asset value calculated after receipt of the redemption or exchange request
subject, in the case of redemptions, to any applicable CDSC. Neither the Fund
nor the Distributor assesses any charges other than the CDSC for redemptions or
exchanges of Class B or Class C Shares. There are certain limitations on an

-4-

<PAGE>

investor's ability to exchange shares between the various classes of shares that
are offered. See Redemption and Exchange.

Open-End Investment Company
Global Funds, Inc. is an open-end, registered management investment
company. Global Equity Fund operates as a diversified fund as defined under the
Investment Company Act of 1940 (the "1940 Act"). Global Funds, Inc. was
organized as a Maryland corporation on May 30, 1991. See Shares under Management
of the Fund.

-5-

<PAGE>

(GLOB-ABC-GEF)

SUMMARY OF EXPENSES

A general comparison of the sales arrangements and other expenses
applicable to Class A, Class B and Class C Shares follows:
<TABLE>
<CAPTION>
Class A Class B Class C
Shareholder Transaction Expenses Shares Shares Shares
- -------------------------------------------------------------------------------------------------------------------

<S> <C> <C> <C>
Maximum Sales Charge Imposed
on Purchases (as a percentage
of offering price)........................................ 4.75% None None

Maximum Sales Charge Imposed on
Reinvested Dividends (as a
percentage of offering price)............................. None None None

Maximum Contingent Deferred Sales Charge
(as a percentage of original purchase price or
redemption proceeds, as applicable)......................... None* 4.00%* 1.00%*

Redemption Fees.............................................. None** None** None**
</TABLE>

* Class A purchases of $1 million or more may be made at net asset value.
However, if in connection with any such purchase a dealer commission is
paid to the financial adviser through whom such purchase is effected, a
CDSC of 1% will be imposed on certain redemptions within 12 months of
purchase ("Limited CDSC"). Class B Shares are subject to a CDSC of: (i)
4% if shares are redeemed within two years of purchase; (ii) 3% if
shares are redeemed during the third or fourth year following purchase;
(iii) 2% if shares are redeemed during the fifth year following
purchase; (iv) 1% if shares are redeemed during the sixth year
following purchase; and (v) 0% thereafter. Class C Shares are subject
to a CDSC of 1% if the shares are redeemed within 12 months of
purchase. See Contingent Deferred Sales Charge for Certain Redemptions
of Class A Shares Purchased at Net Asset Value under Redemption and
Exchange; Deferred Sales Charge Alternative - Class B Shares and Level
Sales Charge Alternative - Class C Shares under Classes of Shares.

** CoreStates Bank, N.A. currently charges $7.50 per redemption for
redemptions payable by wire.

-6-

<PAGE>

(GLOB-ABC-GEF)

<TABLE>
<CAPTION>
Annual Operating Expenses Class A Class B Class C
(as a percentage of average daily net assets) Shares Shares Shares
- -------------------------------------------------------------------------------------------------------------------

Management Fees (after voluntary waivers)..................... 0.00% 0.00% 0.00%

12b-1 Plan Expenses (including service fees)
(after voluntary waivers)..................................... 0.00%+/++ 0.00%+/++ 0.00%+/++

Other Operating Expenses
(after voluntary payments).................................... 0.80%++ 0.80%++ 0.80%++

Total Operating Expenses
(after voluntary waivers and payments).................. 0.80%++ 0.80%++ 0.80%++
</TABLE>

+ Class A Shares, Class B Shares and Class C Shares are subject to
separate 12b-1 Plans. Long-term shareholders may pay more than the
economic equivalent of the maximum front-end sales charges permitted by
rules of the National Association of Securities Dealers, Inc. (the
"NASD"). The Distributor has elected voluntarily to waive its right to
receive 12b-1 Plan fees (including service fees) from the commencement
of the public offering of the Classes through December 31, 1997. In the
absence of those waivers, 12b-1 Plan expenses would equal 0.30% for
Class A Shares and 1.00% for each of the Class B and Class C Shares.
See Distribution (12b-1) and Service under Management of the Fund.

++ "Total Operating Expenses" and "Other Operating Expenses" for the Class
A Shares, the Class B Shares and the Class C Shares are based on
estimated amounts for the first full fiscal year of the Classes, after
giving effect to the voluntary expense waiver. As noted above, the
Distributor has elected to voluntarily waive 12b-1 Plan expenses
through December 31, 1997. Also, the Manager has elected voluntarily to
waive that portion, if any, of the annual management fees payable by
the Fund and to pay certain expenses of the Fund to the extent
necessary to ensure that the Total Operating Expenses of each Class of
the Fund, excluding each such Class' 12b-1 fees, do not exceed 0.80%,
from the commencement of the public offering of the Classes through
December 31, 1997. If the voluntary expense waivers by the Distributor
and the Manager were not in effect, it is estimated that for the first
full year, the Total Operating Expenses, as a percentage of average
daily net assets, would be 2.61%, 3.31% and 3.31%, respectively, for
Class A Shares, Class B Shares and Class C Shares, reflecting
management fees of 0.80%.

For expense information about Global Equity Fund Institutional Class of
shares, see the separate prospectus relating to that class.

-7-

<PAGE>

(GLOB-ABC-GEF)

Assuming Redemption Assuming No Redemption
1 year 3 years 1 year 3 years
------ ------- ------ -------
Class A Shares $55(1) $72 $55 $72

Class B Shares(2) $48 $56 $8 $26

Class C Shares $18 $26 $8 $26

This example should not be considered a representation of past or future
expenses or performance. Actual expenses may be greater or less than those
shown.

The purpose of the above tables is to assist the investor in
understanding the various costs and expenses that an investor in each Class will
bear directly or indirectly.

-8-

<PAGE>

(GLOB-ABC-GEF)

INVESTMENT OBJECTIVE AND POLICIES

SUITABILITY
Investors considering an investment in Global Equity Fund should have a
long-term investment time frame.

Investments in foreign securities whether equity or fixed-income,
involve special risks including those related to currency fluctuations, as well
as to political, economic and social situations different from and potentially
more volatile than those in the United States. In addition, the accounting, tax
and financial reporting standards of foreign countries are different from and
may be less reliable or comprehensive than those relating to U.S. securities
issuers. See Special Risk Considerations for a complete discussion of the risk
factors affecting any international investment. For these reasons, the Fund is
not suitable for short-term investors. However, through the cautious selection
and supervision of its portfolio, the Manager and Sub-Adviser will strive to
achieve the Fund's objective.

The Fund may be suitable for investors with a long-term investment
horizon (atleast three years) who are looking for long-term growth potential
from a portfolio of international securities.

Ownership of shares of the Fund reduces the bookkeeping and
administrative inconveniences that would be involved with direct purchases of
the securities held in the Fund's portfolio.

INVESTMENT STRATEGY
The objective of Global Equity Fund is to achieve long-term growth
without undue risk to principal. The Fund seeks to achieve this objective by
investing in global equity securities that provide the potential for capital
appreciation and income. The Fund is a global fund. Under normal circumstances,
at least 65% of the Fund's total assets will be invested in equity securities of
issuers organized or having a majority of their assets in or deriving a majority
of their operating income in at least three different countries, one of which
may be the United States. The Fund will invest in a broad range of equity
securities including common stocks, preferred stocks, convertible securities and
warrants. The Fund may also invest in sponsored or unsponsored American
Depositary Receipts, European Depositary Receipts or Global Depositary Receipts
("Depositary Receipts"), which are receipts typically issued by a bank or trust
company evidencing ownership of underlying securities issued by a foreign
company.

-9-

<PAGE>

(GLOB-ABC-GEF)

country boundaries. When using a dividend discount analysis to value individual
equity markets, the Manager and Sub-Adviser will look at future anticipated
dividends and discount the value of those dividends back to what they would be
worth if they were being paid today. The Manager and Sub-Adviser will use this
technique to attempt to compare the value of different investments.

In a global portfolio, currency return is also an integral component of
an investment's total return. The Manager and Sub-Adviser will use a purchasing
power parity approach to access the value of individual currencies. Purchasing
power parity attempts to identify the amounts of goods and services that a
dollar will buy in the United States and compare that to the amount of a foreign
currency required to buy the same amount of goods and services in another
country. Eventually, currencies should trade at levels that would make it
possible for the dollar to buy the same amount of goods and services overseas as
in the United States. When the dollar buys less, the foreign currency may be
considered to be overvalued. When the dollar buys more, the currency may be
considered to be undervalued.

Simultaneous with identifying the most attractive equity markets and
currencies, the Manager will attempt to purchase undervalued securities.
Individual equity securities around the world will be selected on the basis of
an analysis of the issuing company's operations, financial statements and each
company's current valuation. In the selection process, the Manager and
Sub-Adviser will place special emphasis on present dividend yield and
expectations for dividend growth.

The Fund may purchase securities in any foreign country, developed and
underdeveloped, or emerging market countries. With respect to certain countries,
investments by an investment company may only be made through investments in
closed-end investment companies that in turn are authorized to invest in the
securities of such countries. See Investment Company Securities under Other
Investment Policies and Risk Considerations.

The Fund may also seek to achieve growth through investment of up to
35% of its assets in income producing debt securities such as U.S. or foreign
government or corporate bonds. In addition, for temporary defensive purposes,
the Fund may invest all or a substantial portion of its assets in high quality
debt instruments issued by foreign governments, their agencies,
instrumentalities or political subdivisions, the U.S. government, its agencies
or instrumentalities (and which are backed by the full faith and credit of the
U.S. government), or issued by foreign or U.S. companies. For example, the Fund
may invest in U.S. fixed-income markets when the Manager believes that the
global equity markets are excessively volatile or overvalued so that the Fund's
objective cannot be achieved in such markets. Any corporate debt obligations
will be rated AA or better by Standard & Poor's Ratings Group ("S&P"), Aa or
better by Moody's Investors Service, Inc. ("Moody's"), or have an equivalent
rating from another nationally recognized statistical rating organization, or if
unrated, will be determined to be of comparable quality by the Manager. The Fund
may also invest in the securities listed above pending investment of proceeds
from new sales of Fund shares and to maintain sufficient cash to meet redemption
requests.

Restricted and Illiquid Securities
The Fund may invest in restricted securities, including securities
eligible for resale without registration pursuant to Rule 144A ("Rule 144A
Securities") under the Securities Act of 1933 (the "1933 Act"). Rule 144A
permits many privately placed and legally restricted securities to be freely
traded among certain institutional buyers, such as the Fund. See Rule 144A
Securities under Other Investment Policies and Risk Considerations. The Fund may
invest up to 15% of the value of its net assets in illiquid securities which are

-10-

<PAGE>

(GLOB-ABC-GEF)

securities which may not be disposed of within seven days at the price at which
they are carried on the Fund's books. In the event this percentage limitation
is exceeded, whether due to changes in the market value of the Fund's illiquid
holdings or because a particular security is deemed to have become illiquid,
the Manager will take steps to remedy these circumstances in an orderly fashion.

* * *

The Fund's investment objective, Global Funds, Inc.'s designation as an
open-end investment company, the Fund's designation as a diversified fund, and
the Fund's policies concerning portfolio lending, borrowing and concentration
may not be changed unless authorized by the vote of a majority of the Fund's
outstanding voting securities. A vote of a "majority of the outstanding voting
securities" is the vote by the holders of the lesser of a) 67% or more of the
Fund's voting securities present in person or represented by proxy if the
holders of more than 50% of the outstanding voting securities of the Fund are
present or represented by proxy; or b) more than 50% of the outstanding voting
securities. Part B lists other more specific investment restrictions of the Fund
which may not be changed without a majority shareholder vote.

The remaining investment policies of the Fund not identified above are
not fundamental and may be changed by the Board of Directors of Global Funds,
Inc. without a shareholder vote. See Special Risk Considerations and Other
Investment Policies and Risk Considerations.

SPECIAL RISK CONSIDERATIONS
Shareholders should understand that all investments involve risk and
there can be no guarantee against loss resulting from an investment in the Fund,
nor can there be any assurance that the Fund's investment objective will be
attained.

Foreign securities risk. The Fund has the right to purchase securities
in any developed, underdeveloped or emerging country. Investors should consider
carefully the substantial risks involved in investing in securities issued by
companies and governments of foreign nations. These risks are in addition to the
usual risks inherent in domestic investments. There is the possibility of
expropriation, nationalization or confiscatory taxation, taxation of income
earned in foreign nations or other taxes imposed with respect to investments in
foreign nations, foreign exchange control (which may include suspension of the
ability to transfer currency from a given country), default in foreign
government securities, political or social instability or diplomatic
developments which could affect investments in securities of issuers in those
nations.

-11-

<PAGE>

(GLOB-ABC-GEF)

had the financial statements been prepared in accordance with United States
generally accepted accounting principles. Also, for an issuer that keeps
accounting records in local currency, inflation accounting rules may require for
both tax and accounting purposes, that certain assets and liabilities be
restated on the issuer's balance sheet in order to express items in terms of
currency or constant purchasing power. Inflation accounting may indirectly
generate losses or profits. Consequently, financial data may be materially
affected by restatements for inflation and may not accurately reflect the real
condition of those issuers and securities markets.

The Fund may encounter difficulty or be unable to pursue legal remedies
and obtain judgments in foreign courts. Commission rates on securities
transactions in foreign countries, which are sometimes fixed rather than subject
to negotiation as in the United States, are likely to be higher. Further, the
settlement period of securities transactions in foreign markets may be longer
than in domestic markets, and may be subject to administrative uncertainties. In
many foreign countries, there is less government supervision and regulation of
business and industry practices, stock exchanges, brokers and listed companies
than in the United States, and capital requirements for brokerage firms are
generally lower. The foreign securities markets of many of the countries in
which the Fund may invest may also be smaller, less liquid and subject to
greater price volatility than those in the United States.

Emerging Markets Securities Risk. Compared to the United States and
other developed countries, in addition to the risks described above, emerging
countries may have volatile social conditions, relatively unstable governments
and political systems, economies based on only a few industries and economic
structures that are less diverse and mature, and securities markets that trade a
small number of securities, which can result in a low or nonexistent volume of
trading. Prices in these securities markets tend to be volatile and, in the
past, securities in these countries have offered greater potential for gain (as
well as loss) than securities of companies located in developed countries. Until
recently, there has been an absence of a capital market structure or
market-oriented economy in certain emerging countries. Further, investments and
opportunities for investments by foreign investors are subject to a variety of
national policies and restrictions in many emerging countries. These
restrictions may take the form of prior governmental approval, limits on the
amount or type of securities held by foreigners, limits on the types of
companies in which foreigners may invest and prohibitions on foreign investments
in issuers or industries deemed sensitive to national interests. Additional
restrictions may be imposed at any time by these or other countries in which the
Fund invests. Also, the repatriation of both investment income and capital from
several foreign countries is restricted and controlled under certain
regulations, including, in some cases, the need for certain governmental
consents. Although these restrictions may in the future make it undesirable to
invest in emerging countries, the Manager does not believe that any current
repatriation restrictions would affect its decision to invest in such countries.
Countries such as those in which the Fund may invest have historically
experienced and may continue to experience, substantial, and in some periods
extremely high rates of inflation for many years, high interest rates, exchange
rate fluctuations or currency depreciation, large amounts of external debt,
balance of payments and trade difficulties and extreme poverty and unemployment.
Other factors which may influence the ability or willingness to service debt
include, but are not limited to, a country's cash flow situation, the
availability of sufficient foreign exchange on the date a payment is due, the
relative size of its debt service burden to the economy as a whole, its
government's policy towards the International Monetary Fund, the World Bank and
other international agencies and the political constraints to which a government
debtor may be subject.

-12-

<PAGE>

(GLOB-ABC-GEF)

With respect to investments in debt issues of foreign governments, the
ability of a foreign government or government-related issuer to make timely and
ultimate payments on its external debt obligations will also be strongly
influenced by the issuer's balance of payments, including export performance,
its access to international credits and investments, fluctuations in interest
rates and the extent of its foreign reserves. A country whose exports are
concentrated in a few commodities or whose economy depends on certain strategic
imports could be vulnerable to fluctuations in international prices of these
commodities or imports. To the extent that a country receives payment for its
exports in currencies other than dollars, its ability to make debt payments
denominated in dollars could be adversely affected. If a foreign government or
government-related issuer cannot generate sufficient earnings from foreign trade
to service its external debt, it may need to depend on continuing loans and aid
from foreign governments, commercial banks and multilateral organizations, and
inflows of foreign investment. The commitment on the part of these foreign
governments, multilateral organizations and others to make such disbursements
may be conditioned on the government's implementation of economic reforms and/or
economic performance and the timely service of its obligations. Failure to
implement such reforms, achieve such levels of economic performance or repay
principal or interest when due may curtail the willingness of such third parties
to lend funds, which may further impair the issuer's ability or willingness to
service its debts in a timely manner. The cost of servicing external debt will
also generally be adversely affected by rising international interest rates
because many external debt obligations bear interest at rates which are adjusted
based upon international interest rates. The ability to service external debt
will also depend on the level of the relevant government's international
currency reserves and its access to foreign exchange. Currency devaluations may
affect the ability of a government issuer to obtain sufficient foreign exchange
to service its external debt.

As a result of the foregoing, a foreign governmental issuer may default
on its obligations. If such a default occurs, the Fund may have limited
effective legal recourse against the issuer and/or guarantor. Remedies must, in
some cases, be pursued in the courts of the defaulting party itself, and the
ability of the holder of foreign government and government-related debt
securities to obtain recourse may be subject to the political climate in the
relevant country. In addition, no assurance can be given that the holders of
commercial bank debt will not contest payments to the holders of other foreign
government and government-related debt obligations in the event of default under
their commercial bank loan agreements.

Risks related to additional investment techniques. With respect to
forward foreign currency contracts, the precise matching of forward contract
amounts and the value of the securities involved is generally not possible since
the future value of such securities in foreign currencies will change as a
consequence of market movements in the value of those securities between the
date the forward contract is entered into and the date it matures. The
projection of short-term currency strategy is highly uncertain.

-13-

<PAGE>

(GLOB-ABC-GEF)

For additional information about the Fund's investment policies and
certain risks associated with investments in certain types of securities
including purchasing put and call options, futures contracts and options
thereon, and options on foreign currencies, see Other Investment Policies and
Risk Considerations. Part B provides more information concerning the Fund's
investment policies, restrictions and risk factors.

-14-

<PAGE>

(GLOB-ABC-GEF)

THE DELAWARE DIFFERENCE

PLANS AND SERVICES
The Delaware Difference is our commitment to provide you with superior
information and quality service on your investments in the Delaware Group of
funds.

SHAREHOLDER PHONE DIRECTORY

Investor Information Center
800-523-4640
Fund Information; Literature; Price; Yield and Performance Figures

Shareholder Service Center
800-523-1918
Information on Existing Regular Investment Accounts and Retirement Plan
Accounts; Wire Investments; Wire Liquidations; Telephone
Liquidations and Telephone Exchanges

Delaphone
800-362-FUND
(800-362-3863)

Performance Information
You can call the Investor Information Center at any time for current
performance information. Total return information may also be included in
advertisements and information given to shareholders.

Shareholder Services
During business hours, you can call the Delaware Group's Shareholder
Service Center. Our representatives can answer any questions about your account,
the Fund, various service features and other funds in the Delaware Group.

Delaphone Service
Delaphone is an account inquiry service for investors with
Touch-Tone(R) phone service. It enables you to get information on your account
faster than the mailed statements and confirmations. Delaphone also provides
current performance information on the Fund, as well as other funds in the
Delaware Group. Delaphone is available seven days a week, 24 hours a day.

-15-

<PAGE>

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Tax Information
Each year, Global Funds, Inc. will mail to you information on the tax
status of your dividends and distributions.

Dividend Payments
Dividends, capital gains and other distributions are automatically
reinvested in your account. You may, however, elect to have the dividends earned
in one fund automatically invested in another Delaware Group fund with a
different investment objective, subject to certain exceptions and limitations.

For more information, see Additional Methods of Adding to Your
Investment - Dividend Reinvestment Plan under How to Buy Shares or call the
Shareholder Service Center.

Right of Accumulation
With respect to Class A Shares, the Right of Accumulation feature
allows you to combine the value of your current holdings of Class A Shares,
Class B Shares and Class C Shares of the Fund with the dollar amount of new
purchases of Class A Shares of the Fund to qualify for a reduced front-end sales
charge on such purchases of Class A Shares. Under the Combined Purchases
Privilege, you may also include certain shares that you own in other funds in
the Delaware Group. See Classes of Shares.

Letter of Intention
The Letter of Intention feature permits you to obtain a reduced
front-end sales charge on purchases of Class A Shares by aggregating certain of
your purchases of Delaware Group fund shares over a 13-month period. See Classes
of Shares and Part B.

12-Month Reinvestment Privilege
The 12-Month Reinvestment Privilege permits you to reinvest proceeds
from a redemption of Class A Shares, within one year of the date of the
redemption, without paying a front-end sales charge. See Part B.

Exchange Privilege
The Exchange Privilege permits you to exchange all or part of your
shares into shares of other funds in the Delaware Group, subject to certain
exceptions and limitations. For additional information on exchanges, see
Investing by Exchange under How to Buy Shares and, Redemption and Exchange.

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Delaware Group Asset Planner
Delaware Group Asset Planner is an asset allocation service that gives
you, when working with a professional financial adviser, the ability to more
easily design and maintain investments in a diversified selection of Delaware
Group mutual funds. The Asset Planner service offers a choice of four
predesigned allocation strategies (each with a different risk/reward profile)
made up of separate investments in predetermined percentages of Delaware Group
funds. With the guidance of a financial adviser, you may also tailor an
allocation strategy that meets your personal needs and goals. See How to Buy
Shares.

Financial Information about the Fund
Each fiscal year, you will receive an audited annual report and an
unaudited semi-annual report. These reports provide detailed information about
each Fund's investments and performance. Global Funds, Inc.'s fiscal year ends
on November 30.

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RETIREMENT PLANNING

Under certain circumstances, an investment in the Fund may be suitable
for tax-deferred retirement plans. Among the retirement plans noted below, Class
B Shares are available for investment only by Individual Retirement Accounts,
Simplified Employee Pension Plans, Salary Reduction Simplified Employee Pension
Plans, 457 Deferred Compensation Plans and 403(b)(7) Deferred Compensation
Plans.

Certain shareholder investment services available to non-retirement
plan shareholders may not be available to retirement plan shareholders. Certain
retirement plans may qualify to purchase shares of Global Equity Fund
Institutional Class. For additional information on any of the plans and
Delaware's retirement services, call the Shareholder Service Center or see Part
B.

Individual Retirement Account ("IRA")
Individuals, even if they participate in an employer-sponsored
retirement plan, may establish their own retirement program for investments in
each of the Classes. Contributions to an IRA may be tax-deductible and earnings
are tax-deferred. The tax deductibility of IRA contributions is restricted, and
in some cases eliminated, for individuals who participate in certain
employer-sponsored retirement plans and whose annual income exceeds certain
limits. Existing IRAs and future contributions up to the IRA maximums, whether
deductible or not, still earn on a tax-deferred basis.

Salary Reduction Simplified Employee Pension Plan ("SAR/SEP")
Although new SAR/SEP plans may not be established after December 31,
1996, plans may be maintained by employers having 25 or fewer employees. An
employer may elect to make additional contributions to such existing plans.

457 Deferred Compensation Plan
Permits employees of state and local governments and certain other
entities to enter into a deferred compensation arrangement for the purchase of
shares of each of the Classes.

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SIMPLE IRA
A SIMPLE IRA combines many of the features of an IRA and a 401(k) Plan
but is easier to administer than a typical 401(k) Plan. It requires employers to
make contributions on behalf of their employees and also has a salary deferral
feature that permits employees to defer a portion of their salary into the plan
on a pre-tax basis.

Allied Plans
Class A Shares are available for purchase by participants in certain
401(k) Defined Contribution Plans ("Allied Plans") which are made available
under a joint venture agreement between the Distributor and another institution
through which mutual funds are marketed and which allow investments in Class A
Shares of designated Delaware Group funds ("eligible Delaware Group fund
shares"), as well as shares of designated classes of non-Delaware Group funds
("eligible non-Delaware Group fund shares"). Class B Shares and Class C Shares
are not eligible for purchase by Allied Plans.

With respect to purchases made in connection with an Allied Plan, the
value of eligible Delaware Group and eligible non-Delaware Group fund shares
held by the Allied Plan may be combined with the dollar amount of new purchases
by that Allied Plan to obtain a reduced front-end sales charge on additional
purchases of eligible Delaware Group fund shares. See Front-End Sales Charge
Alternative - Class A Shares under Classes of Shares.

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the exchange of eligible shares on which a sales charge was already paid or
through the reinvestment of dividends. See Investing by Exchange.

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CLASSES OF SHARES

Alternative Purchase Arrangements
Shares may be purchased at a price equal to the next determined net
asset value per share, subject to a sales charge which may be imposed, at the
election of the purchaser, at the time of the purchase for Class A Shares
("front-end sales charge alternative"), or on a contingent deferred basis for
Class B Shares ("deferred sales charge alternative") or Class C Shares ("level
sales charge alternative").

Class A Shares. An investor who elects the front-end sales charge
alternative acquires Class A Shares, which incur a sales charge when they are
purchased, but generally are not subject to any sales charge when they are
redeemed. Absent any applicable fee waiver, Class A Shares are subject to annual
12b-1 Plan expenses of up to a maximum of 0.30% of average daily net assets of
such shares. Certain purchases of Class A Shares qualify for reduced front-end
sales charges. See Front-End Sales Charge Alternative - Class A Shares, below.
See also Contingent Deferred Sales Charge for Certain Redemptions of Class A
Shares Purchased at Net Asset Value under Redemption and Exchange and
Distribution (12b-1) and Service under Management of the Fund.

Class B Shares. An investor who elects the deferred sales charge
alternative acquires Class B Shares, which do not incur a front-end sales charge
when they are purchased, but are subject to a CDSC if they are redeemed within
six years of purchase. Absent any applicable fee waiver, Class B Shares are
subject to annual 12b-1 Plan expenses of up to a maximum of 1% (0.25% of which
are service fees to be paid to the Distributor, dealers or others for providing
personal service and/or maintaining shareholder accounts) of average daily net
assets of such shares for approximately eight years after purchase. Class B
Shares permit all of the investor's dollars to work from the time the investment
is made. If no waiver of 12b-1 fees is in effect, the higher 12b-1 Plan expenses
paid by Class B Shares will cause such shares to have a higher expense ratio and
to pay lower dividends than Class A Shares. At the end of approximately eight
years after purchase, the Class B Shares will automatically be converted into
Class A Shares and, thereafter, for the remainder of the life of the investment,
the annual 12b-1 Plan fee of up to 0.30% for Class A Shares will apply. See
Automatic Conversion of Class B Shares, below.

Class C Shares. An investor who elects the level sales charge
alternative acquires Class C Shares, which do not incur a front-end sales charge
when they are purchased, but are subject to a CDSC if they are redeemed within
12 months of purchase. Absent any applicable fee waiver, Class C Shares are
subject to annual 12b-1 Plan expenses of up to a maximum of 1% (0.25% of which
are service fees to be paid to the Distributor, dealers or others for providing
personal service and/or maintaining shareholder accounts) of average daily net
assets of such shares for the life of the investment. If no waiver of 12b-1 fees
is in effect, the higher 12b-1 Plan expenses paid by Class C Shares will cause
such shares to have a higher expense ratio and to pay lower dividends than Class
A Shares. Unlike Class B Shares, Class C Shares do not convert to another class.

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being subject to a CDSC if they redeem shares within six years of purchase, or
purchase Class C Shares and have the entire initial purchase amount invested in
the Fund with their investment being subject to a CDSC if they redeem shares
within 12 months of purchase. In addition, investors should consider the level
of annual 12b-1 Plan expenses applicable to each Class. If no waiver of 12b-1
fees is in effect, the higher 12b-1 Plan expenses on Class B Shares and Class C
Shares will be offset to the extent a return is realized on the additional money
initially invested upon the purchase of such shares. However, there can be no
assurance as to the return, if any, that will be realized on such additional
money, and the effect of earning a return on such additional money will diminish
over time. In comparing Class B Shares to Class C Shares, investors should also
consider the duration of the annual 12b-1 Plan expenses to which each of the
Classes is subject and the desirability of an automatic conversion feature,
which is available only for Class B Shares.

Prospective investors should refer to Appendix A--Investment
Illustrations in this Prospectus for an illustration of the potential effect
that each of the purchase options may have on a long-term shareholder's
investment.

For the distribution and related services provided to, and the expenses
borne on behalf of, the Fund, absent any applicable fee waiver, the Distributor
and others will be paid, in the case of the Class A Shares, from the proceeds of
the front-end sales charge and 12b-1 Plan fees and, in the case of the Class B
Shares and the Class C Shares, from the proceeds of the 12b-1 Plan fees and, if
applicable, the CDSC incurred upon redemption. Financial advisers may receive
different compensation for selling Class A, Class B and Class C
Shares. Investors should understand that the purpose and function of the
respective 12b-1 Plans and the CDSCs applicable to Class B Shares and Class C
Shares are the same as those of the 12b-1 Plan and the front-end sales charge
applicable to Class A Shares in that such fees and charges are used to finance
the distribution of the respective Classes. See Distribution (12b-1) and Service
under Management of the Fund.

Dividends paid on Class A, Class B and Class C Shares, to the extent
any dividends are paid, will be calculated in the same manner, at the same time,
on the same day and will be in the same amount, except that, when assessed, the
additional amount of 12b-1 Plan expenses relating to Class B Shares and Class C
Shares will be borne exclusively by such shares. See Calculation of Offering
Price and Net Asset Value Per Share.

The NASD has adopted certain rules relating to investment company sales
charges. Global Funds, Inc. and the Distributor intend to operate in compliance
with these rules.

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Purchases of $100,000 or more carry a reduced front-end sales charge as
shown in the following table.

Global Equity Fund A Class
- --------------------------------------------------------------------------------
Dealer's
Front-End Sales Charge as % of Commission***
Offering Amount as % of
Amount of Purchase Price Invested** Offering Price
- --------------------------------------------------------------------------------

Less than $100,000 4.75% 4.94% 4.00%
$100,000 but under $250,000 3.75 3.88 3.00
$250,000 but under $500,000 2.50 2.59 2.00
$500,000 but under $1,000,000* 2.00 2.00 1.60

* There is no front-end sales charge on purchases of Class A Shares of $1
million or more but, under certain limited circumstances, a 1% Limited
CDSC may apply upon redemption of such shares.

** Based upon the initial net asset value of $8.50 per share of the Class
A Shares.

*** Financial institutions or their affiliated brokers may receive an
agency transaction fee in the percentages set forth above.
- --------------------------------------------------------------------------------

The Fund must be notified when a sale takes place which would qualify
for the reduced front-end sales charge on the basis of previous or
current purchases. The reduced front-end sales charge will be granted
upon confirmation of the shareholder's holdings by the Fund. Such
reduced front-end sales charges are not retroactive.

From time to time, upon written notice to all of its dealers, the
Distributor may hold special promotions for specified periods during
which the Distributor may reallow to dealers up to the full amount of
the front-end sales charge shown above. In addition, certain dealers
who enter into an agreement to provide extra training and information
on Delaware Group products and services and who increase sales of
Delaware Group funds may receive an additional commission of up to
0.15% of the offering price. Dealers who receive 90% or more of the
sales charge may be deemed to be underwriters under the 1933 Act.
- --------------------------------------------------------------------------------

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For initial purchases of Class A Shares of $1,000,000 or more, a dealer's
commission may be paid by the Distributor to financial advisers through whom
such purchases are made in accordance with the following schedule:

Dealer's Commission
(as a percentage of
Amount of Purchase amount purchased)
------------------ -----------------

Up to $2 million 1.00%
Next $1 million up to $3 million 0.75
Next $2 million up to $5 million 0.50
Amount over $5 million 0.25

In determining a financial adviser's eligibility for the dealer's
commission, purchases of Class A Shares of other Delaware Group funds as to
which a Limited CDSC applies may be aggregated with those of the Class A Shares
of the Fund. Financial advisers also may be eligible for a dealer's commission
in connection with certain purchases made under a Letter of Intention or
pursuant to an investor's Right of Accumulation. Financial advisers should
contact the Distributor concerning the applicability and calculation of the
dealer's commission in the case of combined purchases.

Combined Purchases Privilege
By combining your holdings of Class A Shares with your holdings of
Class B Shares and/or Class C Shares of the Fund and shares of other funds in
the Delaware Group, except those noted below, you can reduce the front-end sales
charges on any additional purchases of Class A Shares. Shares of Delaware Group
Premium Fund, Inc. beneficially owned in connection with ownership of variable
insurance products may be combined with other Delaware Group fund holdings.
Assets held in any stable value product available through the Delaware Group may
be combined with other Delaware Group fund holdings. Shares of other funds that
do not carry a front-end sales charge or CDSC may not be included unless they
were acquired through an exchange from a Delaware Group fund that does carry a
front-end sales charge or CDSC.

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Purchases of Class A Shares may also be made by clients of registered
representatives of an authorized investment dealer at net asset value within 12
months after the registered representative changes employment, if the purchase
is funded by proceeds from an investment where a front-end sales charge,
contingent deferred sales charge or other sales charge has been assessed.
Purchases of Class A Shares may also be made at net asset value by bank
employees who provide services in connection with agreements between the bank
and unaffiliated brokers or dealers concerning sales of shares of Delaware Group
funds. In addition, purchases of Class A Shares may be made by financial
institutions investing for the account of their trust customers when they are
not eligible to purchase shares of the Fund's institutional class. Officers,
directors and key employees of institutional clients of the Manager or any of
its affiliates may purchase Class A Shares at net asset value. Moreover,
purchases may be effected at net asset value for the benefit of the clients of
brokers, dealers and registered investment advisers affiliated with a broker or
dealer, if such broker, dealer or investment adviser has entered into an
agreement with the Distributor providing specifically for the purchase of Class
A Shares in connection with special investment products, such as wrap accounts
or similar fee based programs.

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The Fund must be notified in advance that an investment qualifies for
purchase at net asset value.

Group Investment Plans
Group Investment Plans (e.g., SEP/IRA, SAR/SEP, SIMPLE IRA, SIMPLE
401(k), Profit Sharing, Money Purchase Pension, 401(k) Defined Contribution
Plans, and 403(b)(7) and 457 Deferred Compensation Plans) may benefit from the
reduced front-end sales charges available on Class A Shares based on total plan
assets. If a company has more than one plan investing in the Delaware Group of
funds, then the total amount invested in all plans will be aggregated to
determine the applicable front-end sales charge reduction on each purchase, both
initial and subsequent, if, at the time of each such purchase, the company
notifies the Fund that it qualifies for the reduction. Employees participating
in such Group Investment Plans may also combine the investments held in their
plan account to determine the front-end sales charge applicable to purchases in
non-retirement Delaware Group investment accounts if, at the time of each such
purchase, they notify the Fund that they are eligible to combine purchase
amounts held in their plan account.

For additional information on retirement plans, including plan forms,
applications, minimum investments and any applicable account maintenance fees,
contact your investment dealer or the Distributor.

For other retirement plans and special services, see Retirement
Planning.

Deferred Sales Charge Alternative - Class B Shares
Class B Shares may be purchased at net asset value without a front-end
sales charge and, as a result, the full amount of the investor's purchase
payment will be invested in Fund shares. The Distributor currently anticipates
compensating dealers or brokers for selling Class B Shares at the time of
purchase from its own assets in an amount equal to no more than 4% of the dollar
amount purchased. In addition, from time to time, upon written notice to all of
its dealers, the Distributor may hold special promotions for specified periods
during which the Distributor may pay additional compensation to dealers or
brokers for selling Class B Shares at the time of purchase. As discussed below,
however, absent any applicable fee waiver, Class B Shares are subject to annual
12b-1 Plan expenses and, if redeemed within six years of purchase, a CDSC.

Proceeds from the CDSC and the annual 12b-1 Plan fees, if any, are paid
to the Distributor and others for providing distribution and related services,
and bearing related expenses, in connection with the sale of Class B Shares.
These payments support the compensation paid to dealers or brokers for selling
Class B Shares. Payments to the Distributor and others under the Class B 12b-1
Plan may be in an amount equal to no more than 1% annually. The combination of
the CDSC and the proceeds of the 12b-1 Plan fees makes it possible for the Fund
to sell Class B Shares without deducting a front-end sales charge at the time of
purchase.

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Automatic Conversion of Class B Shares

Class B Shares, other than shares acquired through reinvestment of
dividends, held for eight years after purchase are eligible for automatic
conversion into Class A Shares. Conversions of Class B Shares into Class A
Shares will occur only four times in any calendar year, on the last business day
of the second full week of March, June, September and December (each, a
"Conversion Date"). If the eighth anniversary after a purchase of Class B Shares
falls on a Conversion Date, an investor's Class B Shares will be converted on
that date. If the eighth anniversary occurs between Conversion Dates, an
investor's Class B Shares will be converted on the next Conversion Date after
such anniversary. Consequently, if a shareholder's eighth anniversary falls on
the day after a Conversion Date, that shareholder will have to hold Class B
Shares for as long as three additional months after the eighth anniversary of
purchase before the shares will automatically convert into Class A Shares.

Class B Shares of a fund acquired through a reinvestment of dividends
will convert to the corresponding Class A Shares of that fund (or, in the case
of Delaware Group Cash Reserve, Inc., Delaware Cash Reserve Consultant Class)
pro-rata with Class B Shares of that fund not acquired through dividend
reinvestment.

All such automatic conversions of Class B Shares will constitute
tax-free exchanges for federal income tax purposes. See Taxes.

Level Sales Charge Alternative - Class C Shares
Class C Shares may be purchased at net asset value without a front-end
sales charge and, as a result, the full amount of the investor's purchase
payment will be invested in Fund shares. The Distributor currently anticipates
compensating dealers or brokers for selling Class C Shares at the time of
purchase from its own assets in an amount equal to no more than 1% of the dollar
amount purchased. As discussed below, however, absent any applicable fee waiver,
Class C Shares are subject to annual 12b-1 Plan expenses and, if redeemed within
12 months of purchase, a CDSC.

Proceeds from the CDSC and the annual 12b-1 Plan fees, if any, are paid
to the Distributor and others for providing distribution and related services,
and bearing related expenses, in connection with the sale of Class C Shares.
These payments support the compensation paid to dealers or brokers for selling
Class C Shares. Payments to the Distributor and others under the Class C 12b-1
Plan may be in an amount equal to no more than 1% annually.

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Contingent Deferred Sales Charge - Class B Shares and Class C Shares

The following table sets forth the rates of the CDSC for the Class B
Shares of the Fund:

Contingent Deferred
Sales Charge (as a
Percentage of
Dollar Amount
Year After Purchase Made Subject to Charge)
------------------------ ------------------

0-2 4%
3-4 3%
5 2%
6 1%
7 and thereafter None

During the seventh year after purchase and, thereafter, until converted
automatically into Class A Shares, Class B Shares will still be subject to the
annual 12b-1 Plan expenses of up to 1% of average daily net assets of those
shares, absent any applicable fee waiver. See Automatic Conversion of Class B
Shares, above. Investors are reminded that the Class A Shares into which the
Class B Shares will convert are subject to ongoing annual 12b-1 Plan expenses of
up to a maximum of 0.30% of average daily net assets of such shares.

All investments made during a calendar month, regardless of what day of
the month the investment occurred, will age one month on the last day of that
month and each subsequent month.

The CDSC is waived on certain redemptions of Class B Shares and Class C
Shares. See Waiver of Contingent Deferred Sales Charge - Class B and Class C
Shares under Redemption and Exchange.

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Global Equity Fund Institutional Class
In addition to offering Class A, Class B and Class C Shares, the Fund
also offers Global Equity Fund Institutional Class, which is described in a
separate prospectus and is available for purchase only by certain investors.
Global Equity Fund Institutional Class shares generally are distributed directly
by the Distributor and do not have a front-end sales charge, a CDSC or a Limited
CDSC, and are not subject to 12b-1 Plan distribution expenses. To obtain the
prospectus that describes Global Equity Fund Institutional Class, contact the
Distributor by writing to the address or by calling the telephone number listed
on the back of this Prospectus.

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HOW TO BUY SHARES

Purchase Amounts
Generally, the minimum initial purchase is $1,000 for Class A Shares,
Class B Shares and Class C Shares. Subsequent purchases of shares of any Class
generally must be $100 or more. For purchases under the Uniform Gifts to Minors
Act or Uniform Transfers to Minors Act or through an Automatic Investing Plan,
there is a minimum initial purchase of $250 and a minimum subsequent purchase of
$25. Minimum purchase requirements do not apply to retirement plans other than
IRAs, for which there is a minimum initial purchase of $250, and a minimum
subsequent purchase of $25, regardless of which Class is selected.

Investing by Mail
1. Initial Purchases--An Investment Application or, in the case of a
retirement account, an appropriate retirement plan application, must be
completed, signed and sent with a check payable to Global Equity Fund A Class,
Global Equity Fund B Class or Global Equity Fund C Class, to Delaware Group at
1818 Market Street, Philadelphia, PA 19103.

2. Subsequent Purchases--Additional purchases may be made at any time by
mailing a check payable to the specific Fund and Class selected. Your check
should be identified with your name(s) and account number. An investment slip
(similar to a deposit slip) is provided at the bottom of transaction
confirmations and dividend statements that you will receive from Global Funds,
Inc. Use of this investment slip can help expedite processing of your check when
making additional purchases. Your investment may be delayed if you send
additional purchases by certified mail.

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2. Subsequent Purchases--You may make additional investments anytime by
wiring funds to CoreStates Bank, N.A., as described above. You should advise the
Shareholder Service Center by telephone of each wire you send.

If you want to wire investments to a retirement plan account, call the
Shareholder Service Center for special wiring instructions.

Investing by Exchange
If you have an investment in another mutual fund in the Delaware Group,
you may write and authorize an exchange of part or all of your investment into
shares of the Fund. If you wish to open an account by exchange, call the
Shareholder Service Center for more information. All exchanges are subject to
the eligibility and minimum purchase requirements set forth in each fund's
prospectus. See Redemption and Exchange for more complete information concerning
your exchange privileges.

Holders of Class A Shares may exchange all or part of their shares for
certain of the shares of other funds in the Delaware Group, including other
Class A Shares, but may not exchange their Class A Shares for Class B Shares or
Class C Shares of the Fund or of any other fund in the Delaware Group. Holders
of Class B Shares of the Fund are permitted to exchange all or part of their
Class B Shares only into Class B Shares of other Delaware Group funds.
Similarly, holders of Class C Shares of the Fund are permitted to exchange all
or part of their Class C Shares only into Class C Shares of other Delaware Group
funds. See Appendix B--Classes Offered for a list of Delaware Group funds and
the classes they offer. Class B Shares of the Fund and Class C Shares of the
Fund acquired by exchange will continue to carry the CDSC and, in the case of
Class B Shares, the automatic conversion schedule of the fund from which the
exchange is made. The holding period of Class B Shares of the Fund acquired by
exchange will be added to that of the shares that were exchanged for purposes of
determining the time of the automatic conversion into Class A Shares of the
Fund.

See Allied Plans under Retirement Planning for information on exchanges
by participants in an Allied Plan.

Additional Methods of Adding to Your Investment
Call the Shareholder Service Center for more information if you wish to
use the following services:

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account. Many shareholders use this as an automatic savings plan. Shareholders
should allow a reasonable amount of time for initial purchases and changes to
these plans to become effective.

2. Direct Deposit
You may have your employer or bank make regular investments directly to
your Fund account for you (for example: payroll deduction, pay by phone, annuity
payments). The Fund also accepts preauthorized recurring government and private
payments by Electronic Fund Transfer, which avoids mail time and check clearing
holds on payments such as social security, federal salaries, Railroad Retirement
benefits, etc.

* * *

3. Wealth Builder Option
You can use our Wealth Builder Option to invest in the Fund through
regular liquidations of shares in your accounts in other funds in the Delaware
Group. You may also elect to invest in other mutual funds in the Delaware Group
through the Wealth Builder Option through regular liquidations of shares in your
Fund account.

4. Dividend Reinvestment Plan
You can elect to have your distributions (capital gains and/or dividend
income) invested in your Fund account or invested in certain other funds in the
Delaware Group, subject to the exceptions noted below as well as the eligibility
and minimum purchase requirements set forth in each fund's prospectus.

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The sales charge on an investment through the Asset Planner service is
determined by the individual sales charges of the underlying funds and their
percentage allocation in the selected Strategy. Exchanges from existing Delaware
Group accounts into the Asset Planner service may be made at net asset value
under the circumstances described under Investing by Exchange, above. The
minimum initial investment per Strategy is $2,000; subsequent investments must
be at least $100. Individual fund minimums do not apply to investments made
using the Asset Planner service. Class A, Class B and Class C Shares are
available through the Asset Planner service. Generally, only shares within the
same class may be used within the same Strategy. However, Class A Shares of the
Fund and of other funds in the Delaware Group may be used in the same Strategy
with consultant class shares that are offered by certain other Delaware Group
funds. See Appendix B--Classes Offered for the funds in the Delaware Group that
offer consultant class shares.

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associated with administering the Asset Planner service, will be deducted
automatically from one of the funds within your Asset Planner account if not
paid by September 30. However, the annual maintenance fee is waived until
further notice. Investors who utilize the Asset Planner for an IRA will continue
to pay an annual IRA fee of $15 per Social Security number. See Part B.

Purchase Price and Effective Date
The offering price and net asset value of Class A, Class B and Class C
Shares are determined as of the close of regular trading on the New York Stock
Exchange (ordinarily, 4 p.m., Eastern time) on days when the Exchange is open.

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investment may be subject to involuntary redemption without the imposition of a
CDSC or Limited CDSC if he or she redeems any portion of his or her account.

REDEMPTION AND EXCHANGE

You can redeem or exchange your shares in a number of different ways.
The exchange service is useful if your investment requirements change and you
want an easy way to invest in other equity funds, bond funds, tax-advantaged
funds or money market funds. This service is also useful if you are anticipating
a major expenditure and want to move a portion of your investment into a fund
that has the checkwriting feature. Exchanges are subject to the requirements of
each fund and all exchanges of shares constitute taxable events. See Taxes.
Further, in order for an exchange to be processed, shares of the fund being
acquired must be registered in the state where the acquiring shareholder
resides. You may want to consult your financial adviser or investment dealer to
discuss which funds in the Delaware Group will best meet your changing
objectives, and the consequences of any exchange transaction. You may also call
the Delaware Group directly for fund information.

Except as noted below, for a redemption request to be in "good order,"
you must provide your account number, account registration, and the total number
of shares or dollar amount of the transaction. For exchange requests, you must
also provide the name of the fund in which you want to invest the proceeds.
Exchange instructions and redemption requests must be signed by the record
owner(s) exactly as the shares are registered. You may request a redemption or
an exchange by calling the Shareholder Service Center at 800-523-1918. The Fund
may suspend, terminate, or amend the terms of the exchange privilege upon 60
days' written notice to shareholders.

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was tendered as payment, but the Fund will not mail or wire the proceeds until
it is reasonably satisfied that the check has cleared, which may take up to 15
days from the purchase date. You can avoid this potential delay if you purchase
shares by wiring Federal Funds. The Fund reserves the right to reject a written
or telephone redemption request or delay payment of redemption proceeds if there
has been a recent change to the shareholder's address of record.

Holders of Class B Shares or Class C Shares that exchange their shares
("Original Shares") for shares of other funds in the Delaware Group (in each
case, "New Shares") in a permitted exchange, will not be subject to a CDSC that
might otherwise be due upon redemption of the Original Shares. However, such
shareholders will continue to be subject to the CDSC and, in the case of Class B
Shares, the automatic conversion schedule of the Original Shares as described in
this Prospectus and any CDSC assessed upon redemption will be charged by the
fund from which the Original Shares were exchanged. In an exchange of Class B
Shares from the Fund, the Fund's CDSC schedule may be higher than the CDSC
schedule relating to the New Shares acquired as a result of the exchange. For
purposes of computing the CDSC that may be payable upon a disposition of the New
Shares, the period of time that an investor held the Original Shares is added to
the period of time that an investor held the New Shares. With respect to Class B
Shares, the automatic conversion schedule of the Original Shares may be longer
than that of the New Shares. Consequently, an investment in New Shares by
exchange may subject an investor, absent any applicable fee waiver, to the
higher 12b-1 fees applicable to Class B Shares of the Fund for a longer period
of time than if the investment in New Shares were made directly.

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The Telephone Redemption--Check to Your Address of Record service and
the Telephone Exchange service, both of which are described below, are
automatically provided unless you notify the Fund in writing that you do not
wish to have such services available with respect to your account. The Fund
reserves the right to modify, terminate or suspend these procedures upon 60
days' written notice to shareholders. It may be difficult to reach the Fund by
telephone during periods when market or economic conditions lead to an unusually
large volume of telephone requests.

Neither the Fund nor its Transfer Agent is responsible for any
shareholder loss incurred in acting upon written or telephone instructions for
redemption or exchange of Fund shares which are reasonably believed to be
genuine. With respect to such telephone transactions, the Fund will follow
reasonable procedures to confirm that instructions communicated by telephone are
genuine (including verification of a form of personal identification) as, if it
does not, the Fund or the Transfer Agent may be liable for any losses due to
unauthorized or fraudulent transactions. Instructions received by telephone are
generally tape recorded, and a written confirmation will be provided for all
purchase, exchange and redemption transactions initiated by telephone. By
exchanging shares by telephone, you are acknowledging prior receipt of a
prospectus for the fund into which your shares are being exchanged.

Telephone Redemption--Proceeds to Your Bank
Redemption proceeds of $1,000 or more can be transferred to your
predesignated bank account by wire or by check. You should authorize this
service when you open your account. If you change your predesignated bank
account, you must complete an Authorization Form and have your signature
guaranteed. For your protection, your authorization must be on file. If you
request a wire, your funds will normally be sent the next business day.
CoreStates Bank, N.A.'s fee (currently $7.50) will be deducted from your

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(GLOB-ABC-GEF)

redemption proceeds. If you ask for a check, it will normally be mailed the next
business day after receipt of your redemption request to your predesignated bank
account. There are no separate fees for this redemption method, but the mail
time may delay getting funds into your bank account. Simply call the Shareholder
Service Center prior to the time the offering price and net asset value are
determined, as noted above.

Redemptions of such Class A Shares held for more than 12 months will
not be subjected to the Limited CDSC and an exchange of such Class A Shares into
another Delaware Group fund will not trigger the imposition of the Limited CDSC
at the time of such exchange. The period a shareholder owns shares into which
Class A Shares are exchanged will count towards satisfying the 12-month holding
period. The Limited CDSC is assessed if such 12-month period is not satisfied
irrespective of whether the redemption triggering its payment is of Class A
Shares of the Fund or Class A Shares acquired in the exchange.

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Waiver of Limited Contingent Deferred Sales Charge - Class A Shares
The Limited CDSC for Class A Shares on which a dealer's commission has
been paid will be waived in the following instances: (i) redemptions that result
from the Fund's right to liquidate a shareholder's account if the aggregate net
asset value of the shares held in the account is less than the then-effective
minimum account size; (ii) distributions to participants from a retirement plan
qualified under section 401(a) or 401(k) of the Internal Revenue Code of 1986,
as amended (the "Code"), or due to death of a participant in such a plan; (iii)
redemptions pursuant to the direction of a participant or beneficiary of a
retirement plan qualified under section 401(a) or 401(k) of the Code with
respect to that retirement plan; (iv) periodic distributions from an IRA, SIMPLE
IRA or 403(b)(7) or 457 Deferred Compensation Plan due to death, disability, or
attainment of age 59 1/2 and IRA distributions qualifying under Section 72(t) of
the Internal Revenue Code; (v) returns of excess contributions to an IRA; (vi)
distributions by other employee benefit plans to pay benefits; and (vii)
redemptions by the classes of shareholders who are permitted to purchase shares
at net asset value, regardless of the size of the purchase (see Buying Class A
Shares at Net Asset Value under Classes of Shares).

Waiver of Contingent Deferred Sales Charge - Class B and Class C Shares
The CDSC is waived on certain redemptions of Class B Shares in
connection with the following redemptions: (i) redemptions that result from the
Fund's right to liquidate a shareholder's account if the aggregate net asset
value of the shares held in the account is less than the then-effective minimum
account size; (ii) returns of excess contributions to an IRA, SIMPLE IRA,
SEP/IRA or 403(b)(7) or 457 Deferred Compensation Plans; (iii) periodic
distributions from an IRA, SIMPLE IRA, SAR/SEP, SEP/IRA, 403(b)(7) or 457
Deferred Compensation Plan and IRA distributions qualifying under Section 72(t)
of the Internal Revenue Code; and (iv) distributions from an account if the
redemption results from the death of all registered owners of the account (in
the case of accounts established under the Uniform Gifts to Minors or Uniform
Transfers to Minors Acts or trust accounts, the waiver applies upon the death of
all beneficial owners) or a total and permanent disability (as defined in
Section 72 of the Code) of all registered owners occurring after the purchase of
the shares being redeemed.

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(GLOB-ABC-GEF)

DIVIDENDS AND DISTRIBUTIONS

Global Funds, Inc. declares a dividend on to all shareholders of record
of each Class of the Fund at the time the offering price of shares is
determined. See Purchase Price and Effective Date under How to Buy Shares. Thus,
when redeeming shares, dividends continue to be credited up to and including the
date of redemption.

Global Equity Fund will normally declare and make payments from net
investment income on an annual basis. Both dividends and distributions, if any,
are automatically reinvested in your account at net asset value.

Each class of the Fund will share proportionately in the investment
income and expenses of the Fund, except that, absent any applicable fee waiver,
the per share dividends from net investment income on Class A Shares, Class B
Shares and Class C Shares will vary due to the expenses under the 12b-1 Plan
applicable to each Class. Generally, the dividends per share on Class B Shares
and Class C Shares can be expected to be lower than the dividends per share on
Class A Shares because the expenses under the 12b-1 Plans relating to Class B
and Class C Shares will be higher than the expenses under the 12b-1 Plan
relating to Class A Shares. See Distribution (12b-1) and Service under
Management of the Fund.

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(GLOB-ABC-GEF)

TAXES

The Fund intends to qualify as a regulated investment company under
Subchapter M of the Code. As such, the Fund will not be subject to federal
income tax, or to any excise tax, to the extent its earnings are distributed as
provided in the Code.

The sale of shares of the Fund is a taxable event and may result in a
capital gain or loss to shareholders subject to tax. Capital gain or loss may be
realized from an ordinary redemption of shares or an exchange of shares between
the Fund and any other fund in the Delaware Group. Any loss incurred on a sale
or exchange of Fund shares that had been held for six months or less will be
treated as long-term capital loss to the extent of capital gains dividends
received with respect to such shares. All or a portion of the sales charge
incurred in acquiring a Fund's shares will be excluded from the federal tax
basis of any of such shares sold or exchanged within 90 days of their purchase
(for purposes of determining gain or loss upon sale of such shares) if the sale
proceeds are reinvested in such Fund or in another fund in the Delaware Group of
funds and a sales charge that would otherwise apply to the reinvestment is
reduced or eliminated. Any portion of such sales charge excluded from the tax
basis of the shares sold will be added to the tax basis of the shares acquired
in the reinvestment.

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(GLOB-ABC-GEF)

corporations, the Fund may elect to pass-through to its shareholders a pro-rata
share of foreign income taxes paid by the Fund. If this election is made,
shareholders will be (i) required to include in their gross income their
pro-rata share of foreign source income (including any foreign taxes paid by the
Fund), and (ii) entitled to either deduct (as an itemized deduction in the case
of individuals) their share of such foreign taxes in computing their taxable
income or to claim a credit for such taxes against their U.S. income tax,
subject to certain limitations under the Code. Shareholders will be informed by
a Fund at the end of each calendar year regarding the availability of any
credits on and the amount of foreign source income to be included in their
income tax returns.

In addition to federal taxes, shareholders may be subject to state and
local taxes on distributions. Distributions of interest income and capital gains
realized from certain types of U.S. government securities may be exempt from
state personal income taxes. Shares of the Fund are exempt from Pennsylvania
county personal property taxes.

See Accounting and Tax Issues and Distributions and Taxes in Part B for
additional information on tax matters relating to the Fund and its shareholders.

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(GLOB-ABC-GEF)

CALCULATION OF OFFERING PRICE AND NET ASSET VALUE PER SHARE

The offering price and NAV are computed as of the close of regular
trading on the New York Stock Exchange (ordinarily, 4 p.m., Eastern time) on
days when the Exchange is open.

The net asset values of all outstanding shares of each class of a Fund
will be computed on a pro-rata basis for each outstanding share based on the
proportionate participation in that Fund represented by the value of shares of
that class. All income earned and expenses incurred by a Fund will be borne on a
pro-rata basis by each outstanding share of a class, based on each class'
percentage in that Fund represented by the value of shares of such classes,
except that Global Equity Fund Institutional Class will not incur any of the
expenses under Global Funds, Inc.'s 12b-1 Plans, and Class A, Class B and Class
C Shares of each Fund alone will bear the 12b-1 Plan expenses payable under
their respective Plans. Due to the specific distribution expenses and other
costs that will be allocable to each class, the NAV of each class of the Fund
will vary.

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(GLOB-ABC-GEF)

MANAGEMENT OF THE FUND

Investment Manager and Sub-Adviser
Delaware International Advisers Ltd. ("Delaware International" or the
"Manager") furnishes investment management services to the Fund. Delaware
International is affiliated with Delaware Management Company, Inc. ("Delaware"
or the "Sub-Adviser") which manages the U.S. securities portion of the Fund. The
Manager has offices located at Veritas House, 125 Finsbury Pavement, London,
England EC2A 1NQ.

Delaware and its predecessors have been managing the funds in the
Delaware Group since 1938. On April 30, 1997, Delaware and its affiliates within
the Delaware Group, including Delaware International, were managing in the
aggregate more than $32 billion in assets in various institutional or separately
managed (approximately $20,677,606,000) and investment company (approximately
$11,935,210,000) accounts.

Under the Investment Management Agreement between the Manager and
Global Funds, Inc. on behalf of Global Equity Fund, the Manager is paid an
annual fee equal to 0.80% of the Fund's average daily net assets.

As noted below, the Distributor has temporarily elected to voluntarily
waive its right to receive 12b-1 fees. Delaware International has also elected
voluntarily to waive that portion, if any, of the annual management fees payable
by Global Equity Fund and to pay expenses of the Fund to the extent necessary to
ensure that the Total Operating Expenses (exclusive of taxes, interest,
brokerage commissions and extraordinary expenses) of Class A Shares, Class B
Shares and Class C Shares do not exceed 0.80%.

Subject to the overall supervision of the Manager, the Sub-Adviser
manages the U.S. securities portion of Global Equity Fund's portfolio and
furnishes the Manager with investment recommendations, asset allocation advice,
research and other investment services with respect to U.S. securities. For the
services provided to the Manager, the Manager pays the Sub-Adviser a monthly fee
equal to 50% of the fee paid to the Manager under the terms of the Investment
Management Agreement.

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(GLOB-ABC-GEF)

Japanese government for two years, she began her investment career as a Pacific
Basin investment manager with Shearson Lehman Global Asset Management. Prior to
joining Delaware in the Spring of 1991, she was a Pacific Basin equity analyst
and senior portfolio manager at Hill Samuel Investment Advisers Ltd. Ms. Desmond
is a CFA charterholder. Robert L. Arnold, Vice President/Portfolio Manager for
the Fund, has responsibility for making investment decisions for the U.S. equity
portion of Global Equity Fund and has had such responsibility for the Fund since
its inception. Prior to this at the Delaware Group, he was a financial analyst
focusing on the financial services industry including banks, thrifts, insurance
companies and consumer finance companies. He holds a BS from Carnegie Mellon
University and earned an MBA from the University of Chicago. He began his
investment career as a management consultant with Arthur Young in Philadelphia.
Prior to joining Delaware Group in March 1992, Mr. Arnold was a planning analyst
with Chemical Bank in New York.

The Manager and the Sub-Adviser use their best efforts to obtain the
best available price and most favorable execution for portfolio transactions.
Orders may be placed with brokers or dealers who provide brokerage and research
services to the Manager or the Sub-Adviser or their advisory clients. These
services may be used by the Manager and the Sub-Adviser in servicing any of
their respective accounts. Subject to best price and execution, the Manager and
the Sub-Adviser may consider a broker/dealer's sales of shares of funds in the
Delaware Group of funds in placing portfolio orders and may place orders with
broker/dealers that have agreed to defray certain expenses of such funds, such
as custodian fees.

Performance Information
From time to time, the Fund may quote total return performance of its
Classes in advertising and other types of literature.

Total return will be based on a hypothetical $1,000 investment,
reflecting the reinvestment of all distributions at net asset value and: (i) in
the case of Class A Shares, the impact of the maximum front-end sales charge at
the beginning of each specified period; and (ii) in the case of Class B Shares
and Class C Shares, the deduction of any applicable CDSC at the end of the
relevant period. Each presentation will include the average annual total return
for one-, five- and ten-year or life of fund periods, as relevant. Each Fund may
also advertise aggregate and average total return information concerning a Class
over additional periods of time. In addition, the Fund may present total return
information that does not reflect the deduction of the maximum front-end sales
charge or any applicable CDSC. In this case, such total return information would
be more favorable than total return information that includes deductions of the
maximum front-end sales charge or any applicable CDSC.

Because securities prices fluctuate, investment results of the Classes
will fluctuate over time. Past performance is not considered a guarantee of
future results.

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(GLOB-ABC-GEF)

Distribution (12b-1) and Service
The Distributor, Delaware Distributors, L.P., serves as the national
distributor of the Fund's shares under a Distribution Agreement with Global
Funds, Inc. dated as of July 21, 1997.

Global Funds, Inc. has adopted a separate distribution plan under Rule
12b-1 for each of the Class A Shares, Class B Shares and Class C Shares of the
Fund (the "Plans"). The Plans permit the Fund to pay the Distributor from the
assets of the respective Classes a monthly fee for services and expenses in
distributing and promoting sales of shares.

These expenses include, among other things, preparing and distributing
advertisements, sales literature, and prospectuses and reports used for sales
purposes, compensating sales and marketing personnel, holding special promotions
for specified periods of time, and paying distribution and maintenance fees to
brokers, dealers and others. In connection with the promotion of shares of the
Classes, the Distributor may, from time to time, pay to participate in
dealer-sponsored seminars and conferences, and reimburse dealers for expenses
incurred in connection with preapproved seminars, conferences, and advertising.
The Distributor may pay or allow additional promotional incentives to dealers as
part of preapproved sales contests and/or to dealers who provide extra training
and information concerning a Class and increase sales of the Class. In addition,
the Fund may make payments from the 12b-1 Plan fees of its respective Classes
directly to others, such as banks, who aid in the distribution of Class shares
or provide services in respect of a Class, pursuant to service agreements with
Global Funds, Inc. The Distributor has elected voluntarily to waive its right to
receive 12b-1 fees (including service fees) from the commencement of the public
offering of the Classes through December 31, 1997.

Absent any applicable fee waiver, the aggregate fees paid by the Fund
from the assets of the respective Classes to the Distributor and others under
the Plans may not exceed (i) 0.30% of the Class A Shares' average daily net
assets in any year, and (ii) 1% (0.25% of which are service fees to be paid by
the Fund to the Distributor, dealers and others for providing personal service
and/or maintaining shareholder accounts) of each of the Class B Shares' and
Class C Shares' average daily net assets in any year. The Fund's Class A, Class
B and Class C Shares will not incur any distribution expenses beyond these
limits, which may not be increased without shareholder approval.

While payments, if any, pursuant to the Plans may not exceed 0.30%
annually with respect to Class A Shares, and 1% annually with respect to each of
the Class B Shares and the Class C Shares, the Plans do not limit fees to
amounts actually expended by the Distributor. It is therefore possible that the
Distributor may realize a profit in any particular year. However, the
Distributor currently expects that distribution expenses will likely equal or
exceed payments under the Plans. The Distributor may, however incur such
additional expenses and make additional payments to dealers from its own
resources to promote the distribution of shares of the Classes. The monthly fees
paid to the Distributor under the Plans are subject to the review and approval
of Global Funds, Inc.'s unaffiliated directors, who may reduce the fees or
terminate the Plans at any time.

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(GLOB-ABC-GEF)

The Plans do not apply to shares of Global Equity Fund Institutional
Class. Those shares are not included in calculating the Plans' fees, and the
Plans are not used to assist in the distribution and marketing of shares of
Global Equity Fund Institutional Class.

The Transfer Agent, Delaware Service Company, Inc., serves as the
shareholder servicing, dividend disbursing and transfer agent for the Fund
pursuant to an amended and restated agreement. The Transfer Agent also provides
accounting services to the Fund pursuant to the terms of a separate Fund
Accounting Agreement. The directors of Global Funds, Inc. annually review
service fees paid to the Transfer Agent.

The Distributor and the Transfer Agent are also indirect, wholly owned
subsidiaries of DMH.

Shares
Global Funds, Inc. is an open-end management investment company.
Commonly known as a mutual fund, Global Funds, Inc. was organized as a Maryland
corporation on May 30, 1991. Global Funds, Inc. currently offers six series of
shares - International Equity Series, Global Bond Series, Global Assets Series,
Emerging Markets Series, International Trend Series and Global Equity Series.
Fund shares have a par value of $.01 and when issued will be fully paid,
non-assessable, fully transferable and redeemable at the option of the holder.
The shares have no preference as to conversion, exchange, dividends, retirement
or other features and have no preemptive rights. Each Fund will vote separately
on any matter which affects only that Fund. Shares of each Fund have a priority
over shares of any other fund of Global Funds, Inc. in the assets and income of
that Fund.

Global Equity Fund also offers Global Equity Fund Institutional Class
of shares, as well as Class A Shares, Class B Shares and Class C Shares. Shares
of each Class represent proportionate interests in the assets of the Fund and
have the same voting and other rights and preferences as the other classes of
the Fund, except that shares of Global Equity Fund Institutional Class are not
subject to, and may not vote on matters affecting, the Distribution Plans under
Rule 12b-1 relating to Class A, Class B and Class C Shares. Similarly, as a
general matter, the shareholders of Class A Shares, Class B Shares and Class C
Shares may vote only on matters affecting the 12b-1 Plan that relates to the
class of shares that they hold. However, Class B Shares of the Fund may vote on
any proposal to increase materially the fees to be paid by the Fund under the
12b-1 Plan relating to Class A Shares.

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(GLOB-ABC-GEF)

It is expected that Lincoln National Corporation Employees' Retirement
Trust (the "Trust") will make an initial investment in the Fund, which could
result in the Trust holding up to 100% of the outstanding shares of the Fund.
Subject to certain limited exceptions, there would be no limitation on the
Trust's ability to redeem its shares of the Fund and it may elect to do so at
any time.

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OTHER INVESTMENT POLICIES AND RISK CONSIDERATIONS

Portfolio Loan Transactions
The Fund may loan up to 25% of its assets to qualified broker/dealers
or institutional investors for their use relating to short sales or other
security transactions.

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(GLOB-ABC-GEF)

purchase or sell the security and the number of potential purchasers; (iii)
whether at least two dealers are making a market in the security; and (iv) the
nature of the security and the nature of the marketplace trades (e.g., the time
needed to dispose of the security, the method of soliciting offers, and the
mechanics of transfer).

If the Manager determines that a Rule 144A Security which was
previously determined to be liquid is no longer liquid and, as a result, the
Fund's holdings of illiquid securities exceed the Fund's 15% limitation on
investments in such securities, the Manager will determine what action to take
to ensure that the Fund continues to adhere to its respective limitation.

Investment Company Securities
Any investments that the Fund makes in either closed-end or open-end
investment companies will be limited by the 1940 Act, and would involve an
indirect payment of a portion of the expenses, including advisory fees, of such
other investment companies. Under the 1940 Act's limitations, the Fund may not
(1) own more than 3% of the voting stock of another investment company; (2)
invest more than 5% of the Fund's total assets in the shares of any one
investment company; nor (3) invest more than 10% of the Fund's total assets in
shares of other investment companies. These percentage limitations also apply to
the Fund's investments in unregistered investment companies.

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(GLOB-ABC-GEF)

A call option enables the purchaser, in return for the premium paid, to
purchase securities from the writer of the option at an agreed price up to an
agreed date. The advantage is that the purchaser may hedge against an increase
in the price of securities it ultimately wishes to buy or take advantage of a
rise in a particular index. The Fund will only purchase call options to the
extent that premiums paid on all outstanding call options do not exceed 2% of
its total assets.

A put option enables the purchaser of the option, in return for the
premium paid, to sell the security underlying the option to the writer at the
exercise price during the option period, and the writer of the option has the
obligation to purchase the security from the purchaser of the option. The Fund
will only purchase put options to the extent that the premiums on all
outstanding put options do not exceed 2% of its total assets. The advantage is
that the purchaser can be protected should the market value of the security
decline or should a particular index decline.

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In purchasing put and call options, the premium paid by the Fund plus
any transaction costs will reduce any benefit realized by the Fund upon exercise
of the option.

The Fund may use both Exchange-traded and over-the-counter options.
Certain over-the-counter options may be illiquid. The Fund will only invest in
such options to the extent consistent with its 15% limitation on investment in
illiquid securities. The Fund will comply with U.S. Securities and Exchange
Commission asset segregation and coverage requirements when engaging in these
types of transactions.

Futures Contracts and Options on Futures Contracts
The principal purpose for the purchase or sale of futures contracts for
the Fund is to protect the Fund against the fluctuations in interest or exchange
rates which otherwise might adversely affect the value of the Fund's portfolio
securities or adversely affect the prices of securities which the Fund intends
to purchase at a later date without actually buying or selling such securities.

The Fund may enter into contracts for the purchase or sale for future
delivery of securities or foreign currencies. A purchase of a futures contract
means the acquisition of a contractual right to obtain delivery to the Fund of
the securities or foreign currency called for by the contract at a specified
price during a specified future month. When a futures contract is sold, the Fund
incurs a contractual obligation to deliver the securities or foreign currency
underlying the contract at a specified price on a specified date during a
specified future month. To the extent that the Fund invests in futures contracts
and options thereon for other than bona fide hedging purposes, the Fund will not
enter into such transactions if, immediately thereafter, the sum of the amount
of initial margin deposits and premiums paid for open futures options would
exceed 5% of the Fund's total assets, after taking into account unrealized
profits and unrealized losses on such contracts it has entered into; provided,
however, that, in the case of an option that is in-the-money at the time of
purchase, the in-the-money amount may be excluded in calculating the 5%.

The Fund may also purchase and write options to buy or sell futures
contracts. Options on futures are similar to options on securities except that
options on futures give the purchaser the right, in return for the premium paid,
to assume a position in a futures contract, rather than actually to purchase or
sell the futures contract, at a specified exercise price at any time during the
period of the option. When the Fund enters into a futures transaction, it must
deliver to the futures commission merchant selected by the Fund an amount
referred to as "initial margin." This amount is maintained by the futures
commission merchant directly or on its behalf in an account at the Custodian
Bank. Thereafter, a "variation margin" may be paid by the Fund to, or drawn by
the Fund from, such account in accordance with controls set for such accounts,
depending upon changes in the price of the underlying securities subject to the
futures contract.

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(GLOB-ABC-GEF)

APPENDIX A
Illustrations of Hypothetical Returns on Investments Based on Purchase Option
$10,000 Purchase

<TABLE>
<CAPTION>
Scenario 1 Scenario 2
No Redemption Redeem 1st Year
-------------------------------------- -------------------------------------
Year Class A Class B Class C Class A Class B Class C
---- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
0 9,525 10,000 10,000 9,525 10,000 10,000
1 10,478 10,930 10,930 10,478 10,530 10,830+
2 11,525 11,946 11,946
3 12,678 13,058 13,058
4 13,946 14,272 14,272
5 15,340 15,599 15,599
6 16,874 17,050 17,050
7 18,562 18,636 18,636
8 20,418+ 20,369 20,369
9 22,459 22,405* 22,263
10 24,705 24,646* 24,333
</TABLE>
[RESTUBBED FROM TABLE ABOVE]
<TABLE>
<CAPTION>
Scenario 3 Scenario 4
Redeem 3rd Year Redeem 5th Year
------------------------------------- ------------------------------------
Year Class A Class B Class C Class A Class B Class C
---- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
0 9,525 10,000 10,000 9,525 10,000 10,000
1 10,478 10,930 10,930 10,478 10,930 10,930
2 11,525 11,946 11,946 11,525 11,946 11,946
3 12,678 12,758 13,058+ 12,678 13,058 13,058
4 13,946 14,272 14,272
5 15,340 15,399 15,599+
6
7
8
9
10
*This assumes that Class B Shares were converted to Class A Shares at the end of the eighth year.
</TABLE>
<PAGE>

$250,000 Purchase

<TABLE>
<CAPTION>
Scenario 1 Scenario 2
No Redemption Redeem 1st Year
-------------------------------------- ------------------------------------
Year Class A Class B Class C Class A Class B Class C
---- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
0 243,750 250,000 250,000 243,750 250,000 250,000
1 268,125 273,250 273,250 268,125 263,250 270,750+
2 294,938 298,662 298,662
3 324,431 326,438 326,438
4 356,874+ 356,797 356,797
5 392,562 389,979 389,979
6 431,818 426,247 426,247
7 475,000 465,888 465,888
8 522,500 509,215 509,215
9 574,750 560,137* 556,572
10 632,225 616,150* 608,333
</TABLE>
[RESTUBBED FROM TABLE ABOVE]
<TABLE>
<CAPTION>
Scenario 3 Scenario 4
Redeem 3rd Year Redeem 5th Year
------------------------------------ --------------------------------------
Year Class A Class B Class C Class A Class B Class C
---- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
0 243,750 250,000 250,000 243,750 250,000 250,000
1 268,125 273,250 273,250 268,125 273,250 273,250
2 294,938 298,662 298,662 294,938 298,662 298,662
3 324,431 318,938 326,438+ 324,431 326,438 326,438
4 356,874+ 356,797 356,797
5 392,562 384,979 389,979
6
7
8
9
10

*This assumes that Class B Shares were converted to Class A Shares at the end of the eighth year.
</TABLE>
Illustrations do not reflect any applicable waiver of 12b-1 fees. If any such
fee waivers were reflected, the illustrations represented above would be
different.

Assumes a hypothetical return for Class A of 10% per year, a hypothetical return
for Class B of 9.3% for years 1-8 and 10% for years 9-10, and a hypothetical
return for Class C of 9.3% per year. Hypothetical returns vary due to the
different expense structure for each Class and do not represent actual
performance.
Class A purchase subject to appropriate sales charge breakpoint (4.75% @
$10,000; 3.75% @ $100,000; 2.50% @ $250,000).
Class B purchase assessed appropriate CDSC upon redemption (4%-4%-3%-3%-2%-1% in
years 1-2-3-4-5-6).
Class C purchase assessed 1% CDSC upon redemption in year 1.
Figures marked "+" identify which Class offers the greater return potential
based on the investment amount, the holding period and the expense structure of
each Class.

-54-

<PAGE>

(GLOB-ABC-GEF)

APPENDIX B--CLASSES OFFERED

<TABLE>
<CAPTION>
Growth of Capital A Class B Class C Class Consultant Class
<S> <C> <C> <C> <C>

Aggressive Growth Fund x x x -
Trend Fund x x x -
Enterprise Fund x x x -
DelCap Fund x x x -
Value Fund x x x -
U.S. Growth Fund x x x -
Growth Stock Fund x x x -
Tax-Efficient Equity Fund x x x -

Total Return
Blue Chip Fund x x x -
Quantum Fund x x x -
Devon Fund x x x -
Decatur Total Return Fund x x x -
Decatur Income Fund x x x -
Delaware Fund x x x -

International Diversification
Emerging Markets Fund x x x -
New Pacific Fund x x x -
World Growth Fund x x x -
International Equity Fund x x x -
Global Assets Fund x x x -
Global Bond Fund x x x -

(Not Part of Prospectus)

-55-

<PAGE>

(GLOB-ABC-GEF)

APPENDIX B--CLASSES OFFERED - (CON'T)

Money Market Funds
Delaware Cash Reserve x x x x
U.S. Government Money Fund x - - x
Tax-Free Money Fund x - - x
</TABLE>

(Not Part of Prospectus)

-56-

<PAGE>

(GLOB-ABC-GEF)

The Delaware Group includes
funds with a wide range of investment
objectives. Stock funds, income funds,
national and state-specific tax-free
funds, money market funds, global and
international funds and closed-end
equity funds give investors the ability
to create a portfolio that fits their
personal financial goals. For more
information, contact your financial
adviser or call Delaware Group at
800-523-4640.

INVESTMENT MANAGER
Delaware International Advisers Ltd.
Veritas House
125 Finsbury Pavement
London, England EC2A 1NQ

SUB-ADVISER
Delaware Management Company, Inc.
One Commerce Square
Philadelphia, PA 19103

NATIONAL DISTRIBUTORS
Delaware Distributors, L.P.
1818 Market Street
Philadelphia, PA 19103

SHAREHOLDER SERVICING,
DIVIDEND DISBURSING,
ACCOUNTING SERVICES
AND TRANSFER AGENT
Delaware Service Company, Inc.
1818 Market Street
Philadelphia, PA 19103

LEGAL COUNSEL
Stradley, Ronon, Stevens & Young, LLP
One Commerce Square
Philadelphia, PA 19103

INDEPENDENT AUDITORS
Ernst & Young LLP
Two Commerce Square
Philadelphia, PA 19103

CUSTODIAN
The Chase Manhattan Bank
4 Chase Metrotech Center
Brooklyn, NY 11245

<PAGE>

- --------------------------------------------------------------------------------

GLOBAL EQUITY FUND

- --------------------------------------------------------------------------------

A CLASS
- --------------------------------------------------------------------------------

B CLASS
- --------------------------------------------------------------------------------

C CLASS
- --------------------------------------------------------------------------------

PROSPECTUS

- --------------------------------------------------------------------------------

JULY 21, 1997

DELAWARE
GROUP
--------

<PAGE>

INTERNATIONAL SMALL CAP FUND INSTITUTIONAL PROSPECTUS
GLOBAL BOND FUND INSTITUTIONAL JULY 21, 1997
GLOBAL ASSETS FUND INSTITUTIONAL
EMERGING MARKETS FUND INSTITUTIONAL

---------------------------------------------------------------

1818 Market Street, Philadelphia, PA 19103

For more information about International Small Cap Fund Institutional Class,
Global Bond Fund Institutional Class, Global Assets Fund Institutional Class
and Emerging Markets Fund Institutional Class
call Delaware Group at 800-828-5052

This Prospectus describes the shares of the International Small Cap
Series (the "International Small Cap Fund"), the Global Bond Series (the "Global
Bond Fund"), the Global Assets Series (the "Global Assets Fund") and the
Emerging Markets Series (the "Emerging Markets Fund") (individually, a "Fund"
and collectively, the "Funds") of Delaware Group Global & International Funds,
Inc. ("Global Funds, Inc."), a professionally-managed mutual fund of the series
type.

International Small Cap Fund's investment objective is to achieve
long-term capital appreciation. This Fund seeks to achieve its objective by
investing primarily in equity securities of small non-U.S. companies, which may
include companies located or operating in established or emerging countries.
Global Bond Fund's investment objective is to achieve current income consistent
with the preservation of principal. This Fund seeks to achieve its objective by
investing primarily in fixed-income securities that may also provide the
potential for capital appreciation. Global Assets Fund's investment objective is
to achieve long-term total return. This Fund seeks to achieve its objective by
investing in securities which, in Delaware International Advisers Ltd.'s
("Delaware International" or the "Manager") opinion, will provide higher current
income than a portfolio comprised exclusively of equity securities, along with
the potential for capital growth. This Fund will invest in both equity and
fixed-income securities. Emerging Markets Fund's investment objective is to
achieve long-term capital appreciation. This Fund seeks to achieve its objective
by investing primarily in equity securities of issuers located or operating in
emerging countries. See Investment Objectives and Strategies.

Each Fund offers an Institutional Class of shares (individually, a
"Class" and collectively, the "Classes").^ This Prospectus relates only to the
Classes and sets forth information that you should read and consider before you
invest. Please retain it for future reference. The Funds' Statement of
Additional Information ("Part B" of Global Funds, Inc.'s registration
statement), dated July 21, 1997, as it may be amended from time to time,
contains additional information about the Funds and has been filed with the
Securities and Exchange Commission. Part B is incorporated by reference into
this Prospectus and is available, without charge, by writing to Delaware
Distributors, L.P. at the above address or by calling the above number. With the
exception of International Small Cap Fund, each Fund's financial statements
appear in the Annual Report of Global Funds, Inc. for the fiscal year ended
November 30, 1996, which will accompany any response to requests for Part B.
International Small Cap Fund was not offered to the public prior to the date of
this Prospectus.

Each Fund also offers Class A Shares, Class B Shares and Class C
Shares. Shares of these classes are subject to sales charges and other expenses,
which may affect their performance. A prospectus for these classes can be
obtained by writing to Delaware Distributors, L.P. at the above address or by
calling the above number.
-1-

<PAGE>

TABLE OF CONTENTS

Cover Page How to Buy Shares
Synopsis Redemption and Exchange
Summary of Expenses Dividends and Distributions
Financial Highlights Taxes
Investment Objectives and Strategies Calculation of Net Asset Value Per Share
Suitability Management of the Funds
Investment Strategy Other Investment Policies and Risk
Special Risk Considerations Considerations
Classes of Shares Appendix A -- Ratings

-2-

<PAGE>

SYNOPSIS

Investment Objectives
International Small Cap Fund--The investment objective of International
Small Cap Fund is to achieve long-term capital appreciation. This Fund seeks to
achieve its objective by investing primarily in equity securities of small
non-U.S. companies, which may include companies located or operating in
established or emerging countries. The Fund is an international fund. Under
normal market conditions, at least 65% of the Fund's total assets will be
invested in equity securities of companies organized or having a majority of
their assets in or deriving a majority of their operating income in at least
three different countries outside of the United States. The current market
capitalization of the companies in which the Fund intends to invest primarily
generally will be $1.5 billion or less (at the time of purchase).

Global Assets Fund--The investment objective of Global Assets Fund is
to achieve long-term total return. This Fund seeks to achieve its objective by
investing in securities which, in the Manager's or Sub-Adviser's opinion, will
provide higher current income than a portfolio comprised exclusively of equity
securities, along with the potential for capital growth. The Fund will invest in
both equity and fixed-income securities. The Fund is a global fund. As such, at
least 65% of the Fund's total assets will be invested in securities of issuers
organized or having a majority of their assets in or deriving a majority of
their operating income in at least three different countries, one of which may
be the United States. It is anticipated that a portion of the Fund's assets may
be invested in warrants.

For further details, see Investment Objectives and Strategies and Other
Investment Policies and Risk Considerations.

Risk Factors and Special Considerations
Prospective investors should consider a number of factors:

-3-

<PAGE>

3. The prices of equity securities, especially those of the smaller
non-U.S. companies in which International Small Cap Fund will primarily invest,
tend to fluctuate, particularly in the shorter term. Investors in International
Small Cap Fund should be willing to accept the risks associated with emerging
and growth-oriented companies, some of the securities of which may be
speculative and subject the Fund to additional investment risk. See Special Risk
Considerations and Other Investment Policies and Risk Considerations.

5. Emerging Markets Fund may invest up to 35% of its assets, and
International Small Cap Fund may invest up to 15% of its assets, in high yield,
high risk foreign fixed-income securities, including Brady Bonds, and Global
Assets Fund may invest up to 15% of its assets in high yield, high risk U.S.
fixed-income securities ("junk bonds"). Consequently, greater risks may be
involved with an investment in these Funds. See High Yield, High Risk Securities
under Investment Objectives and Strategies.

7. While Global Bond Fund, Global Assets Fund and Emerging Markets Fund
each intend to seek to qualify as a "diversified" investment company under
provisions of Subchapter M of the Internal Revenue Code, as amended (the
"Code"), none of these three Funds will be diversified under the Investment
Company Act of 1940, as amended (the "1940 Act"). Thus, 50% of these Funds'
total net assets will be divided among cash, cash items and other securities of
at least ten different issuers, with no more than 5% of a Fund's total net
assets invested with one issuer. However, this will not satisfy the 1940 Act
requirement that 75% of a Fund's assets be limited to not more than 5% per
issuer. A nondiversified portfolio is believed to be subject to greater risk
because adverse effects on any individual portfolio holdings may affect a larger
portion of the overall assets.

-4-

<PAGE>

See Summary of Expenses and Management of the Funds for further
information regarding the Manager and the Sub-Adviser and the fees payable under
each Fund's Investment Management Agreement and the Sub-Advisory Agreement on
behalf of Global Assets Fund.

Purchase Price
Shares of each Class offered by this Prospectus are available at net
asset value, without a front-end or contingent deferred sales charge and are not
subject to distribution fees under a Rule 12b-1 distribution plan.

Redemption and Exchange
Shares of each Class are redeemed or exchanged at the net asset value
calculated after receipt of the redemption or exchange request. See Redemption
and Exchange.

Open-End Investment Company
Global Funds, Inc. is an open-end, registered management investment
company. International Small Cap Fund operates as a diversified fund as defined
under the 1940 Act. Global Bond Fund, Global Assets Fund and Emerging Markets
Fund operate as nondiversified funds as defined under the 1940 Act. Global
Funds, Inc. was organized as a Maryland corporation on May 30, 1991. See Shares
under Management of the Funds.

-5-
<PAGE>

SUMMARY OF EXPENSES
A general comparison of the sales arrangements and other expenses
applicable to Class A, Class B and Class C Shares of each Fund follows. With
respect to International Small Cap Fund and Emerging Markets Fund, the amounts
set forth below under the heading "Other Operating Expenses" are based on
estimates for that Fund's initial fiscal year in which it conducts operations:
<TABLE>
<CAPTION>

International Global Global Emerging
Small Cap Fund Bond Fund Assets Fund Markets Fund
Shareholder Transaction Expenses Institutional Class Institutional Class Institutional Class Institutional Class
- -------------------------------- ------------------- ------------------- ------------------- -------------------
<S> <C> <C> <C> <C>
Maximum Sales Charge Imposed
on Purchases (as a percentage
of offering price)................. None None None None

Maximum Sales Charge Imposed
on Reinvested Dividends (as
a percentage of offering price).... None None None None

Exchange Fees...................... None* None* None* None*

* Exchanges are subject to the requirements of each fund and a front-end sales charge may apply.

Annual Operating Expenses International Global Global Emerging
(as a percentage of average Small Cap Fund Bond Fund Assets Fund Markets Funds
daily net assets) Institutional Class Institutional Class Institutional Class Institutional Class
- ----------------- ------------------- ------------------- ------------------- -------------------

Management Fees
(after voluntary waivers)...... 0.08%** 0.00%** 0.00%** 0.00%**

12b-1 Expenses
(including service fees)........... None None None None

Other Operating Expenses
(after any voluntary payments)..... 1.62%** 0.95%** 0.95%** 1.70%**

Total Operating Expenses (after
voluntary waivers and payments) ... 1.70%** 0.95%** 0.95%** 1.70%**

</TABLE>

** All expense figures for International Small Cap Fund and Emerging Markets
Fund are estimates. Delaware International has elected voluntarily to waive
that portion, if any, of the annual management fees payable by
International Small Cap Fund, Global Bond Fund, Global Assets Fund and
Emerging Markets Fund and to pay a respective Fund's expenses to the extent
necessary to ensure that the Total Operating Expenses (after voluntary
waivers and payments) of the Institutional Class shares of both
International Small Cap and Emerging Markets Funds do not exceed 1.70%, and
also to the extent necessary to ensure that the Total Operating Expenses
(after voluntary waivers and payments) of the Institutional Class shares of
both Global Bond and Global Assets Funds do not exceed 0.95%, all on an
annualized basis (exclusive of taxes, interest, brokerage commissions and
extraordinary expenses) during the period from the commencement of the
public offering of the Classes of each Fund through November 30, 1997
(except that the waivers and payments for International Small Cap Fund will
initially be in place through December 31, 1997). Absent the voluntary fee
waivers and payments, the Total Operating Expenses and Management Fees as a
percentage of average daily net assets for International Small Cap Fund and
Emerging Markets Fund are expected to be, and the Total Operating Expenses
and Management Fees for Global Bond Fund and Global Assets Fund for the
fiscal year ended November 30, 1996 were, as follows:

-6-
<PAGE>

Total Operating Expenses Management Fees
Institutional Class Institutional Class
------------------------ -------------------
International Small Cap Fund 2.87% 1.25%
Global Bond Fund 4.70% 0.70%
Global Assets Fund 2.42% 0.73%
Emerging Markets Fund 3.80% 1.25%

For expense information about each Fund's A Class, B Class and C Class,
see the separate prospectus relating to those classes.

The following example illustrates the expenses that an investor would
pay on a $1,000 investment over various time periods, assuming (1) a 5% annual
rate of return, and (2) redemption at the end of each time period. As noted in
the tables above, Global Funds, Inc. charges no redemption fees. The following
example assumes the voluntary waiver of the management fee and/or other payments
of expenses by the Manager as discussed in this Prospectus.
<TABLE>
<CAPTION>

International Small Cap Fund
Institutional Class 1 year 3 years 5 years 10 years
$17 $54 N/A N/A

Global Bond Fund
Institutional Class 1 year 3 years 5 years 10 years
$10 $30 $53 $117

Global Assets Fund
Institutional Class 1 year 3 years 5 years 10 years
$10 $30 $53 $117

Emerging Markets Fund
Institutional Class 1 year 3 years 5 years 10 years
$17 $54 N/A N/A
</TABLE>
This example should not be considered a representation of past or future
expenses or performance. Actual expenses may be greater or less than those
shown.

The purpose of the above tables is to assist the investor in
understanding the various costs and expenses that an investor in any of the
Classes will bear directly or indirectly.

-7-
<PAGE>

- --------------------------------------------------------------------------------

FINANCIAL HIGHLIGHTS

-8-
<PAGE>
<TABLE>
<CAPTION>

Global Bond Fund Global Assets Fund Emerging Markets
Institutional Class Institutional Class Institutional Class
------------------- ------------------- -------------------
Period Period Period
Year 12/27/94(1) Year 12/27/94(1) 6/15/96(1)
Ended through Ended through through
11/30/96 11/30/95 11/30/96 11/30/95 11/30/96

<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period............. $11.270 $10.000 $11.930 $10.000 $10.000

Income From Investment Operations
- ---------------------------------
Net Investment Income............................ 0.788(3) 0.782 0.567 0.473 0.047(3)
Net Gains (Losses) on Securities
both realized and unrealized).............. 0.732 1.088 1.533 1.697 (0.057)
------- ------- ------- ------- -------
Total From Investment Operations........... 1.520 1.870 2.100 2.170 (0.010)
------- ------- ------- ------- -------

Less Distributions
- ------------------
Dividends From Net Investment Income............. (0.910) (0.600) (0.420) (0.240) none
Distributions From Capital Gains................. (0.360) none (0.270) none none
------- ------- ------- ------- -------
Total Distributions...................... (1.270) (0.600) (0.690) (0.240) none
------- ------- ------- ------- -------

Net Asset Value, End of Period................... $11.520 $11.270 $13.340 $11.930 $9.990
======= ======= ======= ======= ======
- -------------------------------

Total Return(2).................................. 14.68%(2) 19.21%(2) 18.38%(2) 21.88%(2) (0.10%)(2)
- ---------------

Ratios/Supplemental Data
- ------------------------
Net Assets, End of Period (000's omitted)........ $6,707 $897 $2,203 $2,191 $3,717
Ratio of Expenses to Average Daily Net Assets 0.95% 0.95% 0.95% 0.95% 1.70%
Ratio of Expenses to Average Daily Net Assets
Prior to Expense Limitation................ 4.70% 12.04% 2.42% 7.25% 3.80%
Ratio of Net Investment Income to Average Daily
Net Assets................................. 7.12% 8.00% 4.43% 5.05% 0.47%
Ratio of Net Investment Income to Average Daily
Net Assets Prior to Expense Limitation..... 3.37% (3.09%) 2.96% (1.25%) (1.63%)
Portfolio Turnover Rate.......................... 42% 98% 34% 57% 36%
Average Commission Rate Paid..................... N/A N/A $0.0271 N/A $0.0073

</TABLE>
- ----------
(1) Date of initial public offering; ratios have been annualized but total
return has not been annualized.
(2) Total return reflects the voluntary fee waiver described under Summary of
Expenses and Management of the Funds.
(3) The year ended November 30, 1996 per share information was based on the
average share outstanding method.

-9-
<PAGE>

INVESTMENT OBJECTIVES AND STRATEGIES

SUITABILITY
Investors considering any of the Funds within Global Funds, Inc. should
have a long-term investment time frame.

Investors for whom each Fund is suitable are as set forth below:

Emerging Markets Fund -- The Fund may be suitable for investors who are
seeking long-term growth for that portion of an investor's assets that have been
designated for aggressive investments. The Fund will invest primarily in the
securities of emerging markets which may offer high return potential but are
potentially more risky than investments in either the U.S. or established
foreign countries due, among other things, to less well-developed political and
economic systems.

* * *

Ownership of shares of each Fund reduces the bookkeeping and
administrative inconveniences that would be involved with direct purchases of
the securities held in each Fund's portfolio.

-10-
<PAGE>

In selecting investments for the Fund, the Manager will employ a
dividend discount analysis across country boundaries and will also use a
purchasing power parity approach to identify currencies and markets that are
overvalued or undervalued relative to the U.S. dollar. The Manager uses the
dividend discount analysis to compare the value of different investments. Using
this technique, the Manager looks at future anticipated dividends and discounts
the value of those dividends back to what they would be worth if they were being
paid today. With a purchasing parity approach, the Manager attempts to identify
the amount of goods and services that a dollar will buy in the United States and
compare that to the amount of a foreign currency required to buy the same amount
of goods and services in another country. Eventually, currencies should trade at
levels that should make it possible for the dollar to buy the same amount of
goods and services overseas as in the United States. When the dollar buys less,
the foreign currency may be considered to be overvalued. When the dollar buys
more, the currency may be considered to be undervalued.

-11-
<PAGE>

The Fund may invest up to 15% of its net assets in fixed-income
securities issued by emerging country companies, and foreign governments, their
agencies, instrumentalities or political subdivisions, all of which may be high
yield, high risk fixed-income securities rated lower than BBB by Standard &
Poor's Ratings Group ("S&P") and Baa by Moody's Investors Service, Inc.
("Moody's") or, if unrated, are considered by the Manager to be of equivalent
quality and which present special investment risks. The Fund may also invest in
Brady Bonds. See High Yield, High Risk Securities and Special Risk
Considerations.

-12-
<PAGE>

Bank. For increased safety, the Fund currently anticipates that a large
percentage of its assets will be invested in securities of supranational
entities, and in U.S. and foreign government securities.

From time to time, the Fund may find opportunities to pursue its
objective outside of the fixed-income markets, but in no event will such
investments exceed 5% of the Fund's net assets.

The Fund will attempt to achieve its objective by investing in a broad
range of equity and fixed-income securities. In selecting securities investments
for the Fund, the Manager will consider an issuer's competitive position, cost
structure and liquidity. Equity securities in which the Fund may invest include
convertible securities, common stocks, preferred stocks and warrants issued in
foreign countries or in the United States. In selecting equity securities in
which the Fund may invest, the Manager will use a dividend discount analysis and
a purchasing power parity approach.

-13-
<PAGE>

The Fund may invest in zero coupon bonds and in the debt securities of
supranational entities denominated in any currency. See Investment
Strategy--Global Bond Fund.

The Fund considers an "emerging country" to be any country which is
generally recognized to be an emerging or developing country by the
international financial community, including the World Bank and the
International Finance Corporation, as well as countries that are classified by
the United Nations or otherwise regarded by their authorities as developing. In
addition, any country that is included in the IFC Free Index or MSCI EMF Index
will be considered to be an "emerging country." As of the date of this
Prospectus, there are more than 130 countries which, in the Manager's judgment,
are generally considered to be emerging or developing countries by the
international financial community, approximately 40 of which currently have
stock markets. Within this group of developing or emerging countries are
included almost every nation in the world, except the United States, Canada,
Japan, Australia, New Zealand and most nations located in Western and Northern
Europe.

Currently, investing in many emerging countries is not feasible, or
may, in the Manager's opinion, involve unacceptable political risks. The Fund
will focus its investments in those emerging countries where the Manager
considers the economies to be developing strongly and where the markets are
becoming more sophisticated. The Manager believes that investment opportunities
may result from an evolving long-term international trend favoring more
market-oriented economies, a trend that may particularly benefit certain
countries having developing markets. This trend may be facilitated by local or
international political, economic or financial developments that could benefit
the capital markets in such countries.

-14-
<PAGE>

currently anticipated that the countries in which the Fund may invest will
include, but not be limited to, Argentina, Botswana, Brazil, Chile, China,
Columbia, Greece, Hong Kong, Hungary, India, Indonesia, Jamaica, Jordan, Kenya,
Korea, Malaysia, Mexico, Nigeria, Pakistan, Peru, the Philippines, Poland,
Portugal, Russia, South Africa, Sri Lanka, Taiwan, Thailand, Turkey, Venezuela
and Zimbabwe. As markets in other emerging countries develop, the Manager
expects to expand and further diversify the countries in which the Fund invests.

The Fund may invest up to 35% of its net assets in the type of high
yield, high risk fixed-income securities described with respect to International
Small Cap Fund, and may also invest in Brady Bonds and zero coupon securities.
See High Yield, High Risk Securities and Special Risk Considerations. For
temporary defensive purposes, the Fund may invest all or a substantial portion
of its assets in the same high quality debt instruments in which International
Small Cap Fund may invest. See Investment Objectives and
Strategies-International Fund.

Restricted and Illiquid Securities
Each Fund may invest in restricted securities, including securities
eligible for resale without registration pursuant to Rule 144A ("Rule 144A
Securities") under the Securities Act of 1933 (the "1933 Act"). Rule 144A
permits many privately placed and legally restricted securities to be freely
traded among certain institutional buyers, such as the Funds. See Rule 144A
Securities under Other Investment Policies and Risk Considerations.
International Small Cap Fund and Emerging Markets Fund may invest up to 15% of
the value of their net assets in illiquid securities, which are securities which
may not be disposed of within seven days at the price at which they are carried
on the Fund's books, while Global Assets Fund and Global Bond Fund may invest no
more than 10% of their net assets in such securities. In the event a Fund's
percentage limitation is exceeded, whether due to changes in the market value of
the Fund's illiquid holdings or because a particular security is deemed to have
become illiquid, the manager will take steps to remedy these circumstances in an
orderly fashion.

High Yield, High Risk Securities
International Small Cap Fund may invest up to 15% of its net assets,
and Emerging Markets Fund may invest up to 35% of its net assets, in high yield,
high risk foreign fixed-income securities, including so-called Brady Bonds. See
Foreign Government Securities Risks under Special Risk Considerations. Global
Assets Fund may invest up to 15% of its net assets in high yield, high risk U.S.
fixed-income securities (commonly known as junk bonds). In the past, in the
opinion of Delaware International and Delaware, the high yields from these bonds
have more than compensated for their higher default rates. There can be no
assurance, however, that yields will continue to offset default rates on these
bonds in the future. Delaware International and Delaware intend to maintain an
adequately diversified portfolio of these bonds. While diversification can help
to reduce the effect of an individual default on the Funds, there can be no
assurance that diversification will protect the Funds from widespread bond
defaults brought about by a sustained economic downturn.

-15-
<PAGE>

* * *

Each Fund may invest in securities issued in any currency and may hold
foreign currency. Securities of issuers within a given country may be
denominated in the currency of another country or in multinational currency
units such as the European Currency Unit ("ECU"). For purposes of the 1940 Act,
International Small Cap Fund will operate as a diversified fund, and Global Bond
Fund, Global Assets Fund and Emerging Markets Fund will each operate as a
nondiversified fund. No Fund will concentrate its investments in any particular
industry, which means that no Fund will invest 25% or more of its total assets
in any one industry.

Each Fund's investment objective, Global Funds, Inc.'s designation as
an open-end investment company, International Small Cap Fund's designation as a
diversified fund, Global Bond, Global Assets and Emerging Markets Funds'
designations as nondiversified funds, and each of the Funds' policies concerning
portfolio lending, borrowing and concentration are "fundamental" and may not be
changed unless authorized by the vote of a majority of that Fund's outstanding
voting securities. A vote of a "majority of the outstanding voting securities"
is the vote by the holders of the lesser of a) 67% or more of a Fund's voting
securities present in person or represented by proxy if the holders of more than
50% of the outstanding voting securities of such Fund are present or represented
by proxy; or b) more than 50% of the outstanding voting securities. Part B lists
other more specific investment restrictions of the Funds which may not be
changed without a majority shareholder vote. A brief discussion of those factors
that materially affected each Fund's performance during its most recently
completed fiscal year (except International Small Cap Fund, which had not
commenced operations) appears in Global Funds Inc.'s Annual Report.

SPECIAL RISK CONSIDERATIONS
Shareholders should understand that all investments involve risk and
there can be no guarantee against loss resulting from an investment in a Fund,
nor can there be any assurance that the Fund's investment objective will be
attained.

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<PAGE>

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Emerging Markets Fund will primarily invest, have historically experienced and
may continue to experience, substantial, and in some periods extremely high
rates of inflation for many years, high interest rates, exchange rate
fluctuations or currency depreciation, large amounts of external debt, balance
of payments and trade difficulties and extreme poverty and unemployment. Other
factors which may influence the ability or willingness to service debt include,
but are not limited to, a country's cash flow situation, the availability of
sufficient foreign exchange on the date a payment is due, the relative size of
its debt service burden to the economy as a whole, its government's policy
towards the International Monetary Fund, the World Bank and other international
agencies and the political constraints to which a government debtor may be
subject.

As a result of the foregoing, a foreign governmental issuer may default
on its obligations. If such a default occurs, a Fund may have limited effective
legal recourse against the issuer and/or guarantor. Remedies must, in some
cases, be pursued in the courts of the defaulting party itself, and the ability
of the holder of foreign government and government-related debt securities to
obtain recourse may be subject to the political climate in the relevant country.
In addition, no assurance can be given that the holders of commercial bank debt
will not contest payments to the holders of other foreign government and
government-related debt obligations in the event of default under their
commercial bank loan agreements.

Among the foreign government and government related issuers in which
the Emerging Markets Fund and the International Small Cap Fund may invest are
certain high-yield securities, including so-called Brady Bonds. The issuers of
the foreign government and government-related high yield securities, including
Brady Bonds, in which the Emerging Markets Fund and the International Small Cap
Fund expect to invest have in the past experienced substantial difficulties in
servicing their external debt obligations, which have led to defaults on certain
obligations and the restructuring of certain indebtedness. Restructuring
arrangements have included, among other things,reducing and rescheduling
interest and principal payments by negotiating new or amended credit agreements
or converting outstanding principal and unpaid interest to Brady Bonds, and
obtaining new credit to finance interest payments. Holders of certain foreign
government and government-related high yield securities may be requested to
participate in the restructuring of such obligations and to extend further loans
to their issuers. There can be no assurance that the Brady Bonds and other
foreign government and government-related high yield securities in which the
Emerging Markets Fund and the International Small Cap Fund may invest will not
be subject to similar defaults or restructuring arrangements which may adversely
affect the value of such investments. Furthermore, certain participants in the
secondary market for such debt may be directly involved in negotiating the terms
of these arrangements and may therefore have access to information not available
to other market participants.

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<PAGE>

Small Company Investment Risks. Investments in common stocks in general
are subject to market, economic and business risks that will cause their price
to fluctuate over time. The securities of companies with smaller revenues and
capitalizations in which the International Small Cap Fund may invest may offer
greater opportunity for capital appreciation than larger companies, but
investment in such companies presents greater risks than securities of larger,
more established companies. Historically, smaller capitalization stocks have
been more volatile in price than larger capitalization stocks. Among the reasons
for the greater price volatility of these securities are the lower degree of
liquidity in the markets for such stocks, and the potentially greater
sensitivity of such small companies to changes in or failure of management, and
in many other changes in competitive, business, industry and economic
conditions, including risks associated with limited production, markets,
management depth, or financial resources. Investors should therefore expect that
the value of International Small Cap Fund's shares will be more volatile than
the shares of a fund that invests in larger capitalization stocks.

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Fund may invest up to 15% of its net assets in high yield, high risk U.S.
fixed-income securities. These securities are rated lower than BBB by S&P and
Baa by Moody's or, if unrated, are considered by Delaware International or
Delaware, in the case of Global Assets Fund, to be of equivalent quality. See
Investment Objectives and Strategies--International Small Cap Fund, Global
Assets Fund and Emerging Markets Fund and High Yield, High Risk Securities. No
Fund will purchase securities rated lower than C by S&P or Ca by Moody's, or, if
unrated, considered to be of an equivalent quality to such ratings by Delaware
International or Delaware. See Appendix A -Ratings to this Prospectus for more
rating information. Fixed-income securities of this type are considered to be of
poor standing and predominantly speculative. Such securities are subject to a
substantial degree of credit risk.

For additional information about each Fund's investment policies and
certain risks associated with investments in certain types of securities
including purchasing put and call options, futures contracts and options
thereon, and options on foreign currencies, see Other Investment Policies and
Risk Considerations. Part B provides more information concerning each Fund's
investment policies, restrictions and risk factors.

CLASSES OF SHARES

The Distributor serves as the national distributor for each Fund.
Shares of each Class may be purchased directly by contacting a Fund or its agent
or through authorized investment dealers. All purchases of shares of each Class
are made at net asset value. There is no front-end or contingent deferred sales
charge.

Investment instructions given on behalf of participants in an
employer-sponsored retirement plan are made in accordance with directions
provided by the employer. Employees considering purchasing shares of a Class as
part of their retirement program should contact their employer for details.

Shares of each Class are available for purchase only by: (a) retirement
plans introduced by persons not associated with brokers or dealers that are
primarily engaged in the retail securities business and rollover individual
retirement accounts from such plans; (b) tax-exempt employee benefit plans of
Delaware or its affiliates and securities dealer firms with a selling agreement
with the Distributor; (c) institutional advisory accounts of Delaware or its
affiliates and those having client relationships with Delaware Investment
Advisers, a division of Delaware or its affiliates and their corporate sponsors,
as well as subsidiaries and related employee benefit plans and rollover
individual retirement accounts from such institutional advisory accounts; (d) a
bank, trust company and similar financial institution investing for its own
account or for the account of its trust customers for whom such financial
institution is exercising investment discretion in purchasing shares of a Class,
except where the investment is part of a program that requires payment to the
financial institution of a Rule 12b-1 Plan fee; and (e) registered investment
advisers investing on behalf of clients that consist solely of institutions and
high net-worth individuals having at least $1,000,000 entrusted to the adviser
for investment purposes, but only if the adviser is not affiliated or associated
with a broker or dealer and derives compensation for its services exclusively
from its clients for such advisory services.

Class A Shares, Class B Shares and Class C Shares
In addition to offering International Small Cap Fund Institutional
Class, Global Bond Fund Institutional Class, Global Assets Fund Institutional
Class and Emerging Markets Fund Institutional Class of shares, the respective
Funds also offer: International Small Cap Fund A Class, International Small Cap
Fund B Class and International Small Cap Fund C Class; Global Bond Fund A Class,
Global Bond Fund B Class and Global Bond Fund C Class; Global Assets Fund A
Class, Global Assets Fund B Class and Global Assets Fund C Class; and Emerging
Markets Fund A Class, Emerging Markets Fund B Class and Emerging Markets Fund C
Class, which are described in a separate prospectus. Shares of such classes may
be purchased through authorized investment dealers or directly by contacting
each Fund or its Distributor. Class A

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<PAGE>

Shares carry a front-end sales charge and have annual 12b-1 expenses equal to a
maximum of 0.30%. The maximum front-end sales charge as a percentage of the
offering price of Class A Shares is 4.75% and is reduced on certain transactions
of $100,000 or more. Class B Shares and Class C Shares have no front-end sales
charge but are subject to annual 12b-1 expenses equal to a maximum of 1%. Class
B Shares and Class C Shares and certain Class A Shares may be subject to a
contingent deferred sales charge upon redemption. To obtain a prospectus
relating to such classes, contact the Distributor by writing to the address or
by calling the phone number listed on the back cover of this Prospectus.

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<PAGE>

HOW TO BUY SHARES

Each Fund makes it easy to invest by mail, by wire, by exchange and by
arrangement with your investment dealer. In all instances, investors must
qualify to purchase shares of the Classes.

Investing Directly by Mail
1. Initial Purchases--An Investment Application or, in the case of a retirement
account, an appropriate retirement plan application, must be completed, signed
and sent with a check payable to the specific Fund and Class selected, to
Delaware Group at 1818 Market Street, Philadelphia, PA 19103.

Investing Directly by Wire
You may purchase shares by requesting your bank to transmit funds by
wire to CoreStates Bank, N.A., ABA #031000011, account number 1412893401
(include your name(s) and your account number for the Fund and Class in which
you are investing).

1. Initial Purchases--Before you invest, telephone the Client Services
Department to get an account number at 800-828-5052. If you do not call first,
it may delay processing your investment. In addition, you must promptly send
your Investment Application or, in the case of a retirement account, an
appropriate retirement plan application, to the Fund and Class selected by you,
to Delaware Group at 1818 Market Street, Philadelphia, PA 19103.

2. Subsequent Purchases--You may make additional investments anytime by wiring
funds to CoreStates Bank, N.A., as described above. You must advise your Client
Services Representative by telephone at 800-828-5052 prior to sending your
wire.

Investing by Exchange
If you have an investment in another mutual fund in the Delaware Group
and you qualify to purchase shares of the Classes, you may write and authorize
an exchange of part or all of your investment into a Fund. However, Class B
Shares and Class C Shares of each Fund and Class B Shares and Class C Shares of
the other funds in the Delaware Group offering such a class of shares may not be
exchanged into the Classes. If you wish to open an account by exchange, call
your Client Services Representative at 800-828-5052 for more information. See
Redemption and Exchange for more complete information concerning your exchange
privileges.

Investing through Your Investment Dealer
You can make a purchase of Fund shares through most investment dealers
who, as part of the service they provide, must transmit orders promptly to the
Fund. They may charge for this service.

Purchase Price and Effective Date
The purchase price (net asset value) of each Class is determined as of
the close of regular trading on the New York Stock Exchange (ordinarily, 4 p.m.,
Eastern time) on days when the Exchange is open.

The effective date of a purchase made through an investment dealer is
the date the order is received by the Fund in which the shares are being
purchased. The effective date of a direct purchase is the day your wire,
electronic transfer or check is received, unless it is received after the time
the share price is determined, as noted above. Purchase orders received after
such time will be effective the next business day.

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The Conditions of Your Purchase
Each Fund reserves the right to reject any purchase order. If a
purchase is canceled because your check is returned unpaid, you are responsible
for any loss incurred. A Fund can redeem shares from your account(s) to
reimburse itself for any loss, and you may be restricted from making future
purchases in any of the funds in the Delaware Group. Each Fund reserves the
right to reject purchases by third-party checks or checks 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, you may be subject to additional
bank charges for clearance and currency conversion.

Each Fund also reserves the right, upon 60 days' written notice, to
involuntarily redeem accounts that remain under $250 as a result of redemptions.

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REDEMPTION AND EXCHANGE

Redemption and exchange requests made on behalf of participants in an
employer-sponsored retirement plan are made in accordance with directions
provided by the employer. Employees should therefore contact their employer for
details.

Your shares will be redeemed or exchanged at a price based on the net
asset value next determined after a Fund receives your request in good order.
For example, redemption or exchange requests received in good order after the
time the net asset value of shares is determined^ will be processed on the next
business day. See Purchase Price and Effective Date under How to Buy Shares.
Except as otherwise noted below, for a redemption request to be in "good order,"
you must provide your account number, account registration, and the total number
of shares or dollar amount of the transaction. With regard to exchanges, you
must also provide the name of the fund you want to receive the proceeds.
Exchange instructions and redemption requests must be signed by the record
owner(s) exactly as the shares are registered. You may request a redemption or
an exchange by calling a Fund at 800-828-5052. Redemption proceeds will be
distributed promptly, as described below, but not later than seven days after
receipt of a redemption request.

Each Fund will process written and telephone redemption requests to the
extent that the purchase orders for the shares being redeemed have already
settled. No Fund will honor redemption requests as to shares for which a check
was tendered as payment until the Fund is reasonably satisfied that the check
has cleared, which may take up to 15 days from the purchase date. You can avoid
this potential delay if you purchase shares by wiring Federal Funds. Each Fund
reserves the right to reject a written or telephone redemption request or delay
payment of redemption proceeds if there has been a recent change to the
shareholder's address of record.

Shares of a Class may be exchanged into any other Delaware Group mutual
fund provided: (1) the investment satisfies the eligibility and other
requirements set forth in the prospectus of the fund being acquired, including
the payment of any applicable front-end sales charge; and (2) the shares of the
fund being acquired are in a state where that fund is registered. If exchanges
are made into other shares that are eligible for purchase only by those
permitted to purchase shares of a Class, such shares will be exchanged at net
asset value. Shares of a Class may not be exchanged into Class B Shares or Class
C Shares of the funds in the Delaware Group. Each Fund may suspend, terminate or
amend the terms of the exchange privilege upon 60 days' written notice to
shareholders.

Various redemption and exchange methods are outlined below. No fee is
charged by the Funds or the Distributor for redeeming or exchanging your shares,
although, in the case of an exchange, a sales charge may apply. You may also
have your investment dealer arrange to have your shares redeemed or exchanged.
Your investment dealer may charge for this service.

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<PAGE>

Written Redemption and Exchange
You can write to a Fund at 1818 Market Street, Philadelphia, PA 19103
to redeem some or all of your shares or to request an exchange of any or all
your shares into another mutual fund in the Delaware Group, subject to the same
conditions and limitations as other exchanges noted above. The request must be
signed by all owners of the account or your investment dealer of record.

For redemptions of more than $50,000, or when the proceeds are not sent
to the shareholder(s) at the address of record, each Fund requires a signature
by all owners of the account and may require a signature guarantee. Each
signature guarantee must be supplied by an eligible guarantor institution. Each
Fund reserves the right to reject a signature guarantee supplied by an eligible
institution based on its creditworthiness. A Fund may require further
documentation from corporations, executors, retirement plans, administrators,
trustees or guardians.

Payment is normally mailed the next business day after receipt of your
redemption request. Certificates are issued for shares only if you submit a
specific request. If your shares are in certificate form, the certificate(s)
must accompany your request and also be in good order.

You also may submit your written request for redemption or exchange by
facsimile transmission at the following number: 215-255-8864.

Telephone Redemption and Exchange
To get the added convenience of the telephone redemption and exchange
methods, you must have the Transfer Agent hold your shares (without charge) for
you. If you choose to have your shares in certificate form, you may redeem or
exchange only by written request and you must return your certificates.

The Telephone Redemption - Check to Your Address of Record service and
the Telephone Exchange service, both of which are described below, are
automatically provided unless you notify the Fund in which you have your account
in writing that you do not wish to have such services available with respect to
your account. Each Fund reserves the right to modify, terminate or suspend these
procedures upon 60 days' written notice to shareholders. It may be difficult to
reach a Fund by telephone during periods when market or economic conditions lead
to an unusually large volume of telephone requests.

Neither the Funds nor their Transfer Agent is responsible for any
shareholder loss incurred in acting upon written or telephone instructions for
redemption or exchange of Fund shares which are reasonably believed to be
genuine. With respect to such telephone transactions, a Fund will follow
reasonable procedures to confirm that instructions communicated by telephone are
genuine (including verification of a form of personal identification) as, if it
does not, such Fund or the Transfer Agent may be liable for any losses due to
unauthorized or fraudulent transactions. A written confirmation will be provided
for all purchase, exchange and redemption transactions initiated by telephone.
By exchanging shares by telephone, you are acknowledging prior receipt of a
prospectus for the fund into which your shares are being exchanged.

Telephone Redemption-Check to Your Address of Record
You or your investment dealer of record can have redemption proceeds of
$50,000 or less mailed to you at your address of record. Checks will be payable
to the shareholder(s) of record. Payment is normally mailed the next business
day after receipt of the redemption request.

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<PAGE>

Telephone Redemption-Proceeds to Your Bank
Redemption proceeds of $1,000 or more can be transferred to your
predesignated bank account by wire or by check. You should authorize this
service when you open your account. If you change your predesignated bank
account, you must submit a written authorization and you may need to have your
signature guaranteed. For your protection, your authorization must be on file.
If you request a wire, your funds will normally be sent the next business day.
If you ask for a check, it will normally be mailed the next business day after
receipt of your redemption request to your predesignated bank account. There are
no fees for this redemption method, but the mail time may delay getting funds
into your bank account. Simply call your Client Services Representative prior to
the time the net asset value is determined, as noted above.

Telephone Exchange
You or your investment dealer of record can exchange shares into any
fund in the Delaware Group under the same registration. As with the written
exchange service, telephone exchanges are subject to the same conditions and
limitations as other exchanges noted above. Telephone exchanges may be subject
to limitations as to amounts or frequency.

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<PAGE>

DIVIDENDS AND DISTRIBUTIONS

Each class of a Fund will share proportionately in the investment
income and expenses of that Fund, except that the Classes will not incur any
distribution fee under Global Funds, Inc.'s 12b-1 Plans which apply to Class A
Shares, Class B Shares and Class C Shares.

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<PAGE>

TAXES

The tax discussion set forth below is included for general information
only. Investors should contact their own tax advisers concerning the federal,
state, local or foreign tax consequences of an investment in a Fund.

Although dividends generally will be treated as distributed when paid,
dividends which are declared in October, November, or December to shareholders
of record in such a month, but which, for operational reasons, may not be paid
to the shareholder until the following January, will be treated for tax purposes
as if paid by a Fund and received by the shareholder on December 31 of the year
declared.

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<PAGE>

See Accounting and Tax Issues and Distributions and Taxes in Part B for
additional information on tax matters relating to each Fund and its
shareholders.

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<PAGE>

CALCULATION OF NET ASSET VALUE PER SHARE

The purchase and redemption price of Class shares is the net asset
value ("NAV") per share of Class shares next computed after the order is
received. The NAV is computed as of the close of regular trading on the New York
Stock Exchange (ordinarily, 4 p.m., Eastern time) on days when the Exchange is
open.

The NAV per share is computed by adding the value of all securities and
other assets in a Fund's portfolio, deducting any liabilities of that Fund
(expenses and fees are accrued daily) and dividing by the number of that Fund's
shares outstanding. Portfolio securities for which market quotations are
available are priced at market value. Debt securities are priced at fair value
by an independent pricing service using methods approved by Global Funds, Inc.'s
Board of Directors. Short-term investments having a maturity of less than 60
days are valued at amortized cost, which approximates market value. All other
securities are valued at their fair value as determined in good faith and in a
method approved by Global Funds, Inc.'s Board of Directors.

The net asset values of all outstanding shares of each class of a Fund
will be computed on a pro-rata basis for each outstanding share based on the
proportionate participation in that Fund represented by the value of shares of
that class. All income earned and expenses incurred by a Fund will be borne on a
pro-rata basis by each outstanding share of a class, based on each class'
percentage in that Fund represented by the value of shares of such classes,
except that the Classes will not incur any of the expenses under the Fund's
12b-1 Plans and Class A, Class B and Class C Shares of each Fund alone will bear
the 12b-1 Plan expenses payable under their respective 12b-1 Plans. Due to the
specific distribution expenses and other costs that will be allocable to each
class, the net asset value of each class of a particular Fund will vary.

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MANAGEMENT OF THE FUNDS

Delaware International has elected voluntarily to waive that portion,
if any, of the annual management fees payable by International Small Cap Fund
and Emerging Markets Fund and to reimburse expenses to the extent necessary to
ensure that the Total Operating Expenses (exclusive of taxes, interest,
brokerage commissions and extraordinary expenses) of each of the Classes of
these Funds does not exceed 1.70%. This voluntary waiver, originally in place
through November 30, 1996 for Emerging Markets Fund, has been extended through
November 30, 1997, and will initially be in place for International Small Cap
Fund through December 31, 1997.

Delaware International has elected voluntarily to waive that portion,
if any, of the annual management fees payable by Global Bond Fund and Global
Assets Fund and to reimburse expenses to the extent necessary to ensure that the
Total Operating Expenses (exclusive of taxes, interest, brokerage commissions
and extraordinary expenses, but inclusive of 12b-1 fees) of each of the Classes
of these Funds do not exceed 0.95% through November 30, 1996. This voluntary
waiver has been extended through November 30, 1997.

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<PAGE>

With respect to Global Bond Fund, Global Assets Fund and Emerging
Markets Fund, the investment management fees earned for the fiscal year ended
November 30, 1996 were 0.70%, 0.73% and 0.58% (annualized) of average daily net
assets and no fees were paid as a result of the voluntary waivers. The fees
earned for the Emerging Markets Fund were for the period June 10, 1996 (date of
initial public offering) through November 30, 1996. No fees were earned with
respect to International Small Cap Fund, which has not commenced investment
operations.

In making investment decisions for Global Assets Fund and Emerging
Markets Fund, Mr. Gillmore regularly consults with an international equity team
of nine members, five of whom research the Pacific Basin and four of whom
research the European Markets. Mr. Gillmore also regularly consults with David
G. Tilles. Mr. Tilles, who is Chief Investment Officer for Delaware
International, is a graduate of the University of Warwick with a BS in
management sciences. Before joining the Delaware Group in 1990, he was Chief
Investment Officer of Hill Samuel Investment Advisers Ltd. He is a member of the
Institute of Investment Management & Research and the Operational Research
Society. In addition to the above team, Mr. Gillmore consults regularly with
Robert Akester. Prior to joining Delaware in 1996 as a Senior Portfolio Manager,
Mr. Akester, who began his investment career in 1969, was most recently a
Director of Hill Samuel Investment Advisers Ltd., which he joined in 1985. His
prior experience included working as a Senior Analyst and head of the South-East
Asian Research team at James Capel, and as a Fund Manager at Prudential
Assurance Co., Ltd. Mr. Akester holds a BS in Statistics and Economics from
University College, London and is an associate of the Institute of Actuaries,
with a certificate in Finance and Investment. In making investment decisions for
International Small Cap Fund, Mr. Gillmore and Mr. Sanderson regularly consult
with Fiona A. Barwick. Ms. Barwick, a portfolio manager, joined the Delaware
Group in 1993 to cover the Pacific Basin markets. Prior to this, she spent three
years at Touche Remnant & Co. in London as an assistant portfolio manager and
research analyst. She is a graduate of University College, London.

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<PAGE>

In making investment decisions for this Fund, Mr. Matlack and Mr.
Nichols regularly consult with Paul E. Suckow. Mr. Suckow is Delaware's Chief
Investment Officer for Fixed-Income. He is a CFA charterholder and a graduate of
Bradley University with an MBA from Western Illinois University. Mr. Suckow was
a fixed-income portfolio manager at the Delaware Group from 1981 to 1985. He
returned to the Delaware Group in 1993 after eight years with Oppenheimer
Management Corporation, where he served as Executive Vice President and Director
of Fixed Income.

Ian G. Sims and Christopher A. Moth have primary responsibility for
making day-to-day investment decisions for Global Bond Fund. Mr. Sims has been
the senior portfolio manager for this Fund since its inception. Mr. Sims is a
graduate of the University of Newcastle-Upon-Tyne. He joined Delaware
International in 1990 as a senior international fixed-income and currency
manager. Mr. Sims began his investment career with the Standard Life Assurance
Co., and subsequently moved to the Royal Bank of Canada Investment Management
International Company, where he was an international fixed-income manager. Prior
to joining Delaware International, he was a senior fixed-income and currency
portfolio manager with Hill Samuel Investment Advisers Ltd. Mr. Moth became
Co-Manager of this Fund in January 1997. Mr. Moth is a graduate of The City
University London. Mr. Moth joined Delaware in 1992. He previously worked at the
Guardian Royal Exchange in an actuarial capacity where he was responsible for
technical analysis, quantitative models and projections. Mr. Moth has been
awarded the certificate in Finance & Investment from the Institute of Actuaries
in London.

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<PAGE>

Management responsible for over $500 million in multi-currency fixed interest
accounts. His prior experience included working as an economic adviser for
Credit Suisse and the Economic Intelligence Unit. Mr. Morgan started his
business career as a Corporate Economist & Strategist at Ford of Europe and Esso
Petroleum.

November 30
1996 1995
---- ----
Global Bond Fund 42% 98%*
Global Assets Fund 34% 57%*
Emerging Markets Fund 36%* N/A

- ---------------
* Annualized.

Total return will be based on a hypothetical $1,000 investment,
reflecting the reinvestment of all distributions at net asset value. Each
presentation will include the average annual total return for one-, five- and
ten-year (or life of fund, if applicable) periods. Each Fund may also advertise
aggregate and average total return information concerning a Class over
additional periods of time. In addition, each Fund may present total return
information that does not reflect the deduction of the maximum front-end sales
charge or any applicable CDSC. In this case, such total return information would
be more favorable than total return information that includes deductions of the
maximum front-end sales charge or any applicable CDSC.

Because securities prices fluctuate, investment results of the Classes
will fluctuate over time. Past performance is not considered a guarantee of
future results.

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<PAGE>

Distribution and Service
The Distributor, Delaware Distributors, L.P., serves as the national
distributor for each Fund's shares under separate Distribution Agreements dated
April 3, 1995, as amended on November 29, 1995. Delaware Distributors L.P.
serves as the national distributor of Emerging Markets Fund's shares and
International Small Cap Fund's shares under Distribution Agreements with Global
Funds, Inc. dated May 1, 1996 and July 21, 1997, respectively.

The Transfer Agent, Delaware Service Company, Inc., serves as the
shareholder servicing, dividend disbursing and transfer agent for each Fund
under an amended and restated agreement. The Transfer Agent also provides
accounting services to the Funds pursuant to the terms of a separate Fund
Accounting Agreement. The directors annually review service fees paid to the
Transfer Agent. Certain recordkeeping services and other shareholder services
that otherwise would be performed by the Transfer Agent may be performed by
certain other entities and the Transfer Agent may elect to enter into an
agreement to pay such other entities for those services. In addition,
participant account maintenance fees may be assessed for certain recordkeeping
services provided as part of retirement plan and administration service
packages. These fees are based on the number of participants in the plan and the
various services selected. Fees will be quoted upon request and are subject to
change.

The Distributor and the Transfer Agent are indirect, wholly owned
subsidiaries of DMH.

Expenses
Each Fund is responsible for all of its own expenses other than those
borne by the Manager under the Investment Management Agreements and those borne
by the Distributor under the Distribution Agreements. For the fiscal year ended
November 30, 1996, the ratios of operating expenses to average daily net assets
for Global Bond Fund Institutional Class and Global Assets Fund Institutional
Class were both 0.95%. The ratios of operating expenses to average daily net
assets for Class A Shares, Class B Shares and Class C Shares of International
Small Cap Fund Institutional Class and Emerging Markets Fund Institutional Class
are each expected to be 1.70%.

The ratios reflect the voluntary waiver and payment of fees noted
above.

Shares
Global Funds, Inc. is an open-end management investment company.
Commonly known as a mutual fund, Global Funds, Inc. was organized as a Maryland
corporation on May 30, 1991. Global Funds, Inc. currently offers six series of
shares - International Equity Series, International Small Cap Series, Global
Bond Series, Global Assets Series, Emerging Markets Series^ and Global Equity
Series. Fund shares have a par value of $.01 and when issued will be fully paid,
non-assessable, fully transferable and redeemable at the option of the holder.
The shares have no preference as to conversion, exchange, dividends, retirement
or other features and

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<PAGE>

have no preemptive rights. Each Fund will vote separately on any matter which
affects only that Fund. Shares of each Fund have a priority over shares of any
other fund of Global Funds, Inc. in the assets and income of that Fund.

In addition to Institutional Class shares, International Small Cap Fund
offers International Small Cap Fund A Class, International Small Cap Fund B
Class and International Small Cap Fund C Class; Global Bond Fund offers Global
Bond Fund A Class, Global Bond Fund B Class and Global Bond Fund C Class; Global
Assets Fund offers Global Assets Fund A Class, Global Assets Fund B Class and
Global Assets Fund C Class and Emerging Markets Fund offers Emerging Markets
Fund A Class, Emerging Markets Fund B Class^ and Emerging Markets Fund C Class.
Shares of each Class represent proportionate interests in the assets of the
respective Fund and have the same voting and other rights and preferences as the
other classes of that Fund, except that shares of the Classes are not subject
to, and may not vote on matters affecting, the Distribution Plans under Rule
12b-1 relating to Class A, Class B and Class C Shares.

-36-
<PAGE>

OTHER INVESTMENT POLICIES AND RISK CONSIDERATIONS

Portfolio Loan Transactions
Each Fund may loan up to 25% of its assets to qualified broker/dealers
or institutional investors for their use relating to short sales or other
security transactions.

Rule 144A Securities
While maintaining oversight, the Board of Directors of Global Funds,
Inc. has delegated to the Manager the day-to-day functions of determining
whether or not individual Rule 144A Securities are liquid for purposes of each
Fund's limitation on investments in illiquid assets (10% for Global Bond and
Global Assets Funds, and 15% for International Small Cap and Emerging Markets
Funds). The Board has instructed the Manager to consider the following factors
in determining the liquidity of a Rule 144A Security: (i) the frequency of
trades and trading volume for the security; (ii) whether at least three dealers
are willing to purchase or sell the security and the number of potential
purchasers; (iii) whether at least two dealers are making a market in the
security; and (iv) the nature of the security and the nature of the marketplace
trades (e.g., the time needed to dispose of the security, the method of
soliciting offers, and the mechanics of transfer).

-37-
<PAGE>

Foreign Currency Transactions
Although the Funds value their assets daily in terms of U.S. dollars,
they do not intend to convert their holdings of foreign currencies into U.S.
dollars on a daily basis. Each Fund will, however, from time to time, purchase
or sell foreign currencies and/or engage in forward foreign currency
transactions in order to expedite settlement of portfolio transactions and to
minimize currency value fluctuations. Each Fund may conduct its foreign currency
exchange transactions on a spot (i.e., cash) basis at the spot rate prevailing
in the foreign currency exchange market or through entering into contracts to
purchase or sell foreign currencies at a future date (i.e., a "forward foreign
currency" contract or "forward" contract). A forward contract involves an
obligation to purchase or sell a specific currency at a future date, which may
be any fixed number of days from the date of the contract, agreed upon by the
parties, at a price set at the time of the contract. The Funds will convert
currency on a spot basis from time to time, and investors should be aware of the
costs of currency conversion.

-38-
<PAGE>

sell, for a fixed amount of U.S. dollars or other appropriate currency, the
amount of foreign currency approximating the value of some or all of the Fund's
securities denominated in such foreign currency.

-39-
<PAGE>

In purchasing put and call options, the premium paid by a Fund plus any
transaction costs will reduce any benefit realized by the Fund upon exercise of
the option.

Each Fund may use both Exchange-traded and over-the-counter options.
Certain over-the-counter options may be illiquid. A Fund will only invest in
such options to the extent consistent with its 10% limitation (or, in the case
of International Small Cap and Emerging Markets Fund, its 15% limitation) on
investment in illiquid securities. The Funds will comply with U.S. Securities
and Exchange Commission asset segregation and coverage requirements when
engaging in these types of transactions.

Each Fund may enter into contracts for the purchase or sale for future
delivery of securities or foreign currencies. A purchase of a futures contract
means the acquisition of a contractual right to obtain delivery to a Fund of the
securities or foreign currency called for by the contract at a specified price
during a specified future month. When a futures contract is sold, a Fund incurs
a contractual obligation to deliver the securities or foreign currency
underlying the contract at a specified price on a specified date during a
specified future month. To the extent that a Fund invests in futures contracts
and options thereon for other than bona fide hedging purposes, the Fund will not
enter into such transactions if, immediately thereafter, the sum of the amount
of initial margin deposits and premiums paid for open futures options would
exceed 5% of the Fund's total assets, after taking into account unrealized
profits and unrealized losses on such contracts it has entered into; provided,
however, that, in the case of an option that is in-the-money at the time of
purchase, the in-the-money amount may be excluded in calculating the 5%.

-40-
<PAGE>

to the exercise date, it will suffer a loss of the premium paid. Further, the
possible lack of a secondary market could prevent the Fund from closing out its
positions relating to futures.

-41-
<PAGE>

The Fund may enter into interest rate swaps on either an asset-based or
liability-based basis, depending upon whether it is hedging its assets or its
liabilities, and will usually enter into interest rate swaps on a net basis,
i.e., the two payment streams are netted out, with the Fund receiving or paying,
as the case may be, only the net amount of the two payments. Inasmuch as these
hedging transactions are entered into for non-speculative purposes and not for
the purpose of leveraging the Fund's investments, the Manager and the Fund
believe such obligations do not constitute senior securities and, accordingly,
will not treat them as being subject to its borrowing restrictions. The net
amount of the excess, if any, of the Fund's obligations over its entitlement
with respect to each interest rate swap will be accrued on a daily basis and an
amount of cash or high-quality liquid securities having an aggregate net asset
value at least equal to the accrued excess will be maintained in a segregated
account by the Custodian Bank. If the Fund enters into an interest rate swap on
other than a net basis, the Fund would maintain a segregated account in the full
amount accrued on a daily basis of the Fund's obligations with respect to the
swap.

-42-
<PAGE>

APPENDIX A--RATINGS

Average Weighted
Percentage of Portfolio
Rating Moody's of Global Assets Fund
-------------- ---------------------
Ba/BB 3.34%
B/B 4.10%
Not Rated/Other 0.10%

General Rating Information

Bonds
Excerpts from Moody's description of its bond ratings: Aaa--judged to
be the best quality. They carry the smallest degree of investment risk;
Aa--judged to be of high quality by all standards; A--possess favorable
attributes and are considered "upper medium" grade obligations; Baa--considered
as medium grade obligations. Interest payments and principal security appear
adequate for the present but certain protective elements may be lacking or may
be characteristically unreliable over any great length of time; Ba--judged to
have speculative elements; their future cannot be considered as well assured.
Often the protection of interest and principal payments may be very moderate and
thereby not well safeguarded during both good and bad times over the future.
Uncertainty of position characterizes bonds in this class; B--generally lack
characteristics of the desirable investment. Assurance of interest and principal
payments or of maintenance of other terms of the contract over any long period
of time may be small; Caa--are of poor standing. Such issues may be in default
or there may be present elements of danger with respect to principal or
interest; Ca--represent obligations which are speculative in a high degree. Such
issues are often in default or have other marked shortcomings; C--the lowest
rated class of bonds and issues so rated can be regarded as having extremely
poor prospects of ever attaining any real investment standing.

Excerpts from S&P's description of its bond ratings: AAA--highest grade
obligations. They possess the ultimate degree of protection as to principal and
interest; AA--also qualify as high grade obligations, and in the majority of
instances differ from AAA issues only in a small degree; A--strong ability to
pay interest and repay principal although more susceptible to changes in
circumstances; BBB--regarded as having an adequate capacity to pay interest and
repay principal; BB, B, CCC, CC--regarded, on balance, as predominantly
speculative with respect to capacity to pay interest and repay principal in
accordance with the terms of the obligation. BB indicates the lowest degree of
speculation and CC the highest degree of speculation. While such debt will
likely have some quality and protective characteristics, these are outweighed by
large uncertainties or

-43-
<PAGE>

major risk exposures to adverse conditions; C--reserved for income bonds on
which no interest is being paid; D--in default, and payment of interest and/or
repayment of principal is in arrears.

-44-
<PAGE>

For more information, call
Delaware Group at 800-828-5052. ---------------------------------
INTERNATIONAL SMALL CAP FUND
INSTITUTIONAL
GLOBAL BOND FUND INSTITUTIONAL
GLOBAL ASSETS FUND INSTITUTIONAL
EMERGING MARKETS FUND
INVESTMENT MANAGER INSTITUTIONAL
Delaware International Advisers Ltd. ---------------------------------
Veritas House
125 Finsbury Pavement
London, England EC2A 1NQ

SUB-ADVISER
Delaware Management Company, Inc.
One Commerce Square
Philadelphia, PA 19103

NATIONAL DISTRIBUTOR
Delaware Distributors, L.P.
1818 Market Street
Philadelphia, PA 19103

SHAREHOLDER SERVICING,
DIVIDEND DISBURSING,
ACCOUNTING SERVICES
AND TRANSFER AGENT
Delaware Service Company, Inc.
1818 Market Street
Philadelphia, PA 19103 P R O S P E C T U S

LEGAL COUNSEL ---------------------------------
Stradley, Ronon, Stevens & Young, LLP
One Commerce Square
Philadelphia, PA 19103
JULY 21, 1997
INDEPENDENT AUDITORS
Ernst & Young LLP
Two Commerce Square
Philadelphia, PA 19103

CUSTODIAN
The Chase Manhattan Bank
4 Chase Metrotech Center
Brooklyn, NY 11245

DELAWARE
GROUP
=========

-45-

<PAGE>

(GLOBAL-IEF-IC)

INTERNATIONAL EQUITY FUND INSTITUTIONAL PROSPECTUS
JULY 21, 1997
------------------------------------------------------

1818 Market Street, Philadelphia, PA 19103

For more information about
International Equity Fund Institutional Class
call Delaware at 800-828-5052

This Prospectus describes the shares of the International Equity Series
(the "Fund" or the "International Equity Fund") of Delaware Group Global &
International Funds, Inc. ("Global Funds, Inc."), a professionally-managed
mutual fund of the series type.

International Equity Fund's investment objective is to achieve
long-term growth without undue risk to principal. The Fund seeks to achieve its
objective by investing primarily in securities that provide the potential for
capital appreciation and income. See Investment Objectives and Strategy.

The Fund offers International Equity Fund Institutional Class of shares
(the "Class"). This Prospectus relates only to the Class and sets forth
information that you should read and consider before you invest. Please retain
it for future reference. The Fund's Statement of Additional Information ("Part
B" of Global Funds, Inc.'s registration statement), dated July 21, 1997, as it
may be amended from time to time, contains additional information about the Fund
and has been filed with the Securities and Exchange Commission. Part B is
incorporated by reference into this Prospectus and is available, without charge,
by writing to Delaware Distributors, L.P. at the above address or by calling the
above number. The Fund's financial statements appear in the Annual Report of
Global Funds, Inc. for the fiscal year ended November 30, 1996, which will
accompany any response to requests for Part B.

The Fund also offers Class A Shares, Class B Shares and Class C Shares.
Shares of these classes are subject to sales charges and other expenses, which
may affect their performance. A prospectus for these classes can be obtained by
writing to Delaware Distributors, L.P. at the above address or by calling the
above number.

-1-

<PAGE>

(GLOBAL-IEF-IC)

TABLE OF CONTENTS

Cover Page How to Buy Shares
Synopsis Redemption and Exchange
Summary of Expenses Dividends and Distributions
Financial Highlights Taxes
Investment Objective and Strategy Calculation of Net Asset Value Per Share
Suitability Management of the Fund
Investment Strategy Other Investment Policies and Risk
Special Risk Considerations Considerations
Classes of Shares

-2-

<PAGE>

(GLOBAL-IEF-IC)

SYNOPSIS

Investment Objective The investment objective of International Equity
Fund is to achieve long-term growth without undue risk to principal. This Fund
seeks to achieve its objective by investing primarily in equity securities that
provide the potential for capital appreciation and income. The Fund is an
international fund. As such, at least 65% of the Fund's total assets will be
invested in equity securities of issuers organized or having a majority of their
assets in or deriving a majority of their operating income in at least three
different countries outside of the United States.

For further details, see Investment Objectives and Strategy and Other
Investment Policies and Risk Considerations.

Risk Factors and Special Considerations
Prospective investors should consider a number of factors:

-3-

<PAGE>

(GLOBAL-IEF-IC)

See Summary of Expenses and Management of the Fund for further
information regarding the Manager and the fees payable under the Fund's
Investment Management Agreement.

Purchase Price
Shares offered by this Prospectus are available at net asset value,
without a front-end or contingent deferred sales charge, and are not subject to
distribution fees under a Rule 12b-1 Distribution Plan.

Redemption and Exchange
Shares of the Fund are redeemed or exchanged at the net asset value
calculated after receipt of the redemption or exchange request. See Redemption
and Exchange.

Open-End Investment Company
Global Funds, Inc. is an open-end, registered management investment
company and International Equity Fund operates as a diversified fund as defined
under the Investment Company Act of 1940 (the "1940 Act"). Global Funds, Inc.
was organized as a Maryland corporation on May 30, 1991. See Shares under
Management of the Fund.

-4-

<PAGE>

(GLOBAL-IEF-IC)

SUMMARY OF EXPENSES
<TABLE>
<CAPTION>
International Equity Fund
Shareholder Transaction Expenses Institutional Class
- -------------------------------- -------------------
<S> <C>
Maximum Sales Charge Imposed
on Purchases (as a percentage
of offering price).......................................................... None

Maximum Sales Charge Imposed
on Reinvested Dividends (as
a percentage of offering price)............................................. None

Exchange Fees............................................................... None*
</TABLE>
* Exchanges are subject to the requirements of each fund and a front-end sales
charge may apply.

Annual Operating Expenses (as a International Equity Fund
percentage of average daily net assets) Institutional Class
- --------------------------------------- -------------------
<S> <C>
Management Fees
(after voluntary waivers).................................................... 0.64%**

12b-1 Expenses.............................................................. None

Other Operating Expenses ................................................... 0.91%**
-----
Total Operating Expenses
(after voluntary waivers)................................................. 1.55%**
=====

</TABLE>

** Delaware International has elected voluntarily to waive that portion,
if any, of the annual management fees payable by the Fund and to pay
the Fund's expenses to the extent necessary to ensure that the Total
Operating Expenses (after voluntary waivers and payments) of
International Equity Fund Institutional Class does not exceed 1.55% on
an annualized basis (exclusive of taxes, interest, brokerage
commissions and extraordinary expenses) through November 30, 1997.
Total Operating Expenses assume that the voluntary waiver has been in
effect. Absent the voluntary fee waiver and payments, Total Operating
Expenses (as a percentage of average daily net assets) for the fiscal
year ended November 30, 1996 were 1.65%, reflecting Management Fees of
0.75%.

For expense information about the Fund's A Class, B Class and C Class,
see the separate prospectus relating to those classes.

-5-

<PAGE>

(GLOBAL-IEF-IC)

The following example illustrates the expenses that an investor would
pay on a $1,000 investment over various time periods, assuming (1) a 5% annual
rate of return and (2) redemption at the end of each time period. The following
example assumes the voluntary waiver of the management fee and/or other payment
of expenses by the Manager as discussed in this Prospectus.

International Equity 1 year 3 years 5 years 10 years
------ ------- ------- --------
<S> <C> <C> <C> <C>
Fund Institutional Class $16 $49 $84 $185

</TABLE>

This example should not be considered a representation of past or future
expenses or performance. Actual expenses may be greater or less than those
shown.

The purpose of the above tables is to assist the investor in
understanding the various costs and expenses that an investor in the Class will
bear directly or indirectly.

-6-

<PAGE>

(GLOBAL-IEF-IC)

- --------------------------------------------------------------------------------

FINANCIAL HIGHLIGHTS

The following financial highlights are derived from the financial statements of
International Equity Fund of Delaware Group Global & International Funds, Inc.
and have been audited by Ernst & Young LLP, independent auditors. The data
should be read in conjunction with the financial statements, related notes, and
the report of Ernst & Young LLP covering such financial information and
highlights, all of which are incorporated by reference into Part B. Further
information about the Fund's performance is contained in the Fund's Annual
Report to shareholders. A copy of the Fund's Annual Report (including the
report of Ernst & Young LLP) may be obtained from Global Funds, Inc. upon
request at no charge.
- --------------------------------------------------------------------------------

-7-

International Equity Fund
Institutional Class
----------------------------------------------------------------------------------
Period Period
11/9/92(1) Year 10/31/91(2)(3)
Year Ended through Ended through
11/30/96(1) 11/30/95(1) 11/30/94(1) 11/30/93(1) 11/30/92 11/30/92(2) 11/30/91

<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period..... $12.240 $11.970 $11.290 $9.590 $9.520 $9.650 $10.000

Income From Investment Operations
- ---------------------------------
Net Investment Income(6)................. 0.530 0.323 0.166 0.594 0.021 0.162 (0.004)
Net Gains (Losses) on Securities
(both realized and unrealized)........ 2.405 0.637 0.899 1.581 0.049 (0.172) (0.346)
----- ----- ----- ----- ----- ------- -------
Total From Investment Operations 2.935 0.960 1.065 2.175 0.070 (0.010) (0.350)
----- ----- ----- ----- ----- ------- -------
Less Distributions
- ------------------
Dividends From Net Investment Income..... (0.320) (0.220) (0.245) (0.475) none (0.050) none
Distributions From Capital Gains......... (0.145) (0.470) (0.140) none none none none
------- ------- ------- ---- ---- ---- ----
Total Distributions................... (0.465) (0.690) (0.385) (0.475) none (0.050) none
------ ------- ------- ------- ---- ------- ----
Net Asset Value, End of Period........... $14.710 $12.240 $11.970 $11.290 $9.590 $9.590 $9.650
======= ======== ======== ======== ====== ======= ======
_________________________________________

Total Return............................. 24.68%(4) 8.46% 9.47%(4) 23.52%(4) (0.15%)(4) (0.15%)(4)(5) (3.50%)(4)(5)
- ------------

- -------------------------------------------------

Ratios/Supplemental Data
- ------------------------
Net Assets, End of Period (000's omitted) $34,194 $11,660 $7,613 $3,959 $1,120 $4,604 $723
Ratio of Expenses to Average Daily
Net Assets............................ 1.55% 1.77% 1.26% 0.95% 0.95% 1.25% (3)
Ratio of Expenses to Average Daily Net
Assets Prior to Expense Limitation.... 1.65% 1.77% 1.52% 1.86% 5.37% 5.67% (3)
Ratio of Net Investment Income to
Average Daily Net Assets............ 4.00% 2.87% 1.52% 4.21% 2.74% 2.44% (3)
Ratio of Net Investment Income to Average
Daily Net Assets Prior to
Expense Limitation............... 3.90% 2.87% 1.26% 3.30% (1.70%) 2.00% (3)
Portfolio Turnover Rate............. 9% 21% 27% 24% 12% 12% (3)
Average Commission Rate Paid........ $0.0243 N/A N/A N/A N/A N/A N/A
</TABLE>

- -------------------------
(1) The per share data are derived from International Equity Fund Institutional
Class (formerly known as International Equity Fund (Institutional) class)
which commenced operations on November 9, 1992. Ratios for the period
November 9, 1992 through November 30, 1992 have been annualized and the
total return reflects the performance of International Equity Fund A Class
from December 1, 1991 to November 8, 1992 and the performance of
International Equity Fund Institutional Class from November 9, 1992 to
November 30, 1992.
(2) The per share data for International Equity Fund Institutional Class are
derived from International Equity Fund A Class (formerly known as
International Equity Fund class) and reflect the impact of Rule 12b-1
distribution expenses paid by International Equity Fund A Class.
International Equity Fund Institutional Class shares are not subject to Rule
12b-1 distribution expenses and, beginning November 9, 1992, the per share
data do not reflect the deduction of such expenses. Total return has been
annualized for the period ended November 30, 1991.
(3) Date of initial public offering of International Equity Fund A Class. The
ratios of expenses and net investment income to average daily net assets and
portfolio turnover have been omitted as management believes such ratios
for this relatively short period are not meaningful.
(4) Total return reflects the voluntary fee waiver described under Summary of
Expenses and Management of the Fund.
(5) Does not reflect maximum front-end sales charge that is or was in effect nor
the 1% Limited CDSC that would apply in the event of certain redemptions
within 12 months of purchase.
(6) The year ended November 30, 1996 per share information was based on the
average share outstanding method.

<PAGE>

(GLOBAL-IEF-IC)

INVESTMENT OBJECTIVE AND STRATEGY

SUITABILITY
Investors considering an investment in International Equity Fund should
have a long-term investment time frame.

Investments in foreign securities, whether equity or fixed-income,
involve special risks including those related to currency fluctuations, as well
as to political, economic and social situations different from and potentially
more volatile than those in the United States. In addition, the accounting, tax
and financial reporting standards of foreign countries are different from and
may be less reliable or comprehensive than those relating to U.S. securities
issuers. See Special Risk Considerations for a complete discussion of the risk
factors affecting any international investment. For these reasons, the Fund is
not suitable for short-term investors. However, through the cautious selection
and supervision of its portfolio, the Manager will strive to achieve the Fund's
objective.

The Fund may be suitable for investors with a long-term investment
horizon (at least three years) who are looking for long-term growth potential
from a portfolio of international securities.

* * *

Ownership of shares of the Fund reduces the bookkeeping and
administrative inconveniences that would be involved with direct purchases of
the securities held in the Fund's portfolio.

INVESTMENT STRATEGY

-8-

<PAGE>

(GLOBAL-IEF-IC)

While the Fund may purchase securities in any foreign country,
developed and underdeveloped, or emerging market countries, it is currently
anticipated that the countries in which the Fund may invest will include, but
not be limited to, Canada, Germany, the United Kingdom, France, the Netherlands,
Belgium, Spain, Switzerland, Japan, Australia, Hong Kong and Singapore/Malaysia.
With respect to certain countries, investments by an investment company may only
be made through investments in closed-end investment companies that in turn are
authorized to invest in the securities of such countries. See Investment Company
Securities under Other Investment Policies and Risk Considerations.

For temporary defensive purposes, the Fund may invest all or a
substantial portion of its assets in high quality debt instruments issued by
foreign governments, their agencies, instrumentalities or political
subdivisions, the U.S. government, its agencies or instrumentalities and which
are backed by the full faith and credit of the U.S. government, or issued by
foreign or U.S. companies. For example, the Fund may invest in U.S. fixed-income
markets when the Manager believes that the global equity markets are excessively
volatile or overvalued so that the Fund's objective cannot be achieved in such
markets. Any corporate debt obligations will be rated AA or better by Standard &
Poor's Ratings Group ("S&P"), or Aa or better by Moody's Investors Service, Inc.
("Moody's"), or if unrated, will be determined to be of comparable quality by
the Manager. The Fund may also invest in the securities listed above pending
investment of proceeds from new sales of Fund shares and to maintain sufficient
cash to meet redemption requests.

-9-

<PAGE>

(GLOBAL-IEF-IC)

present in person or represented by proxy if the holders of more than 50% of the
outstanding voting securities of the Fund are present or represented by proxy;
or b) more than 50% of the outstanding voting securities. Part B lists other
more specific investment restrictions of the Fund which may not be changed
without a majority shareholder vote. A brief discussion of those factors that
materially affected the Fund's performance during its most recently completed
fiscal year appears in Global Fund, Inc.'s Annual Report.

The investment policies of the Fund not identified above as
"fundamental" and may be changed by the Board of Directors of Global Funds, Inc.
without a shareholder vote. See Special Risk Considerations and Other Investment
Policies and Risk Considerations.

-10-

<PAGE>

(GLOBAL-IEF-IC)

markets, and may be subject to administrative uncertainties. In many foreign
countries, there is less government supervision and regulation of business and
industry practices, stock exchanges, brokers and listed companies than in the
United States, and capital requirements for brokerage firms are generally lower.
The foreign securities markets of many of the countries in which the Fund may
invest may also be smaller, less liquid and subject to greater price volatility
than those in the United States.

-11-

<PAGE>

(GLOBAL-IEF-IC)

multilateral organizations, and inflows of foreign investment. The commitment on
the part of these foreign governments, multilateral organizations and others to
make such disbursements may be conditioned on the government's implementation of
economic reforms and/or economic performance and the timely service of its
obligations. Failure to implement such reforms, achieve such levels of economic
performance or repay principal or interest when due may curtail the willingness
of such third parties to lend funds, which may further impair the issuer's
ability or willingness to service its debts in a timely manner. The cost of
servicing external debt will also generally be adversely affected by rising
international interest rates because many external debt obligations bear
interest at rates which are adjusted based upon international interest rates.
The ability to service external debt will also depend on the level of the
relevant government's international currency reserves and its access to foreign
exchange. Currency devaluations may affect the ability of a government issuer to
obtain sufficient foreign exchange to service its external debt.

-12-

<PAGE>

(GLOBAL-IEF-IC)

CLASSES OF SHARES

The Distributor serves as the national distributor for the Fund. Shares
of the Class may be purchased directly by contacting the Fund or its agent or
through authorized investment dealers. All purchases of shares of the Class are
made at net asset value. There is no front-end or contingent deferred sales
charge.

Investment instructions given on behalf of participants in an
employer-sponsored retirement plan are made in accordance with directions
provided by the employer. Employees considering purchasing shares of the Class
as part of their retirement program should contact their employer for details.

Shares of the Class are available for purchase only by: (a) retirement
plans introduced by persons not associated with brokers or dealers that are
primarily engaged in the retail securities business and rollover individual
retirement accounts from such plans; (b) tax-exempt employee benefit plans of
Delaware or its affiliates and securities dealer firms with a selling agreement
with the Distributor; (c) institutional advisory accounts of Delaware or its
affiliates and those having client relationships with Delaware Investment
Advisers, a division of Delaware or its affiliates and their corporate sponsors,
as well as subsidiaries and related employee benefit plans and rollover
individual retirement accounts from such institutional advisory accounts; (d) a
bank, trust company and similar financial institution investing for its own
account or for the account of its trust customers for whom such financial
institution is exercising investment discretion in purchasing shares of the
Class, except where the investment is part of a program that requires payment to
the financial institution of a Rule 12b-1 Plan fee; and (e) registered
investment advisers investing on behalf of clients that consist solely of
institutions and high net-worth individuals having at least $1,000,000 entrusted
to the adviser for investment purposes, but only if the adviser is not
affiliated or associated with a broker or dealer and derives compensation for
its services exclusively from its clients for such advisory services.

Class A Shares, Class B Shares and Class C Shares
In addition to offering International Equity Fund Institutional Class
of shares, International Equity Fund also offers: International Equity Fund A
Class, International Equity Fund B Class and International Equity Fund C Class,
which are described in a separate prospectus. Shares of such classes may be
purchased through authorized investment dealers or directly by contacting the
Fund or its Distributor. Class A Shares carry a front-end sales charge and have
annual 12b-1 expenses equal to a maximum of 0.30%. The maximum front-end sales
charge as a percentage of the offering price of Class A Shares is 4.75% and is
reduced on certain transactions of $100,000 or more. Class B Shares and Class C
Shares have no front-end sales charge but are subject to annual 12b-1 expenses
equal to a maximum of 1%. Class B Shares and Class C Shares and certain Class A
Shares may be subject to a contingent deferred sales charge upon redemption. To
obtain a prospectus relating to such classes, contact the Distributor by writing
to the address or by calling the phone number listed on the back cover of this
Prospectus.

-13-

<PAGE>

(GLOBAL-IEF-IC)

HOW TO BUY SHARES

The Fund makes it easy to invest by mail, by wire, by exchange and by
arrangement with your investment dealer. In all instances, investors must
qualify to purchase shares of the Class.

Investing by Exchange
If you have an investment in another mutual fund in the Delaware Group
and you qualify to purchase shares of the Class, you may write and authorize an
exchange of part or all of your investment into the Fund. However, Class B
Shares and Class C Shares of each Fund and Class B Shares and Class C Shares of
the other funds in the Delaware Group offering such a class of shares may not be
exchanged into the Class. If you wish to open an account by exchange, call your
Client Services Representative at 800-828-5052 for more information. See
Redemption and Exchange for more complete information concerning your exchange
privileges.

-14-

<PAGE>

(GLOBAL-IEF-IC)

Purchase Price and Effective Date
The purchase price (net asset value) of the Class is determined as of
the close of regular trading on the New York Stock Exchange (ordinarily, 4 p.m.,
Eastern time) on days when the Exchange is open.

The Conditions of Your Purchase
The Fund reserves the right to reject any purchase order. If a purchase
is canceled because your check is returned unpaid, you are responsible for any
loss incurred. The Fund can redeem shares from your account(s) to reimburse
itself for any loss, and you may be restricted from making future purchases in
any of the funds in the Delaware Group. The Fund reserves the right to reject
purchases by third-party checks or checks 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, you may be subject to additional bank charges
for clearance and currency conversion.

The Fund also reserves the right, upon 60 days' written notice, to
involuntarily redeem accounts that remain under $250 as a result of redemptions.

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(GLOBAL-IEF-IC)

REDEMPTION AND EXCHANGE

Your shares will be redeemed or exchanged at a price based on the net
asset value next determined after the Fund receives your request in good order.
For example, redemption or exchange requests received in good order after the
time the net asset value of shares is determined will be processed on the next
business day. See Purchase Price and Effective Date under How to Buy Shares.
Except as otherwise noted below, for a redemption request to be in "good order,"
you must provide your account number, account registration, and the total number
of shares or dollar amount of the transaction. With regard to exchanges, you
must also provide the name of the fund in which you want to invest the proceeds.
Exchange instructions and redemption requests must be signed by the record
owner(s) exactly as the shares are registered. You may request a redemption or
an exchange by calling the Fund at 800-828-5052. Redemption proceeds will be
distributed promptly, as described below, but not later than seven days after
receipt of a redemption request.

The Fund will process written and telephone redemption requests to the
extent that the purchase orders for the shares being redeemed have already
settled. The Fund will not honor redemption requests as to shares for which a
check was tendered as payment until the Fund is reasonably satisfied that the
check has cleared, which may take up to 15 days from the purchase date. You can
avoid this potential delay if you purchase shares by wiring Federal Funds. The
Fund reserves the right to reject a written or telephone redemption request or
delay payment of redemption proceeds if there has been a recent change to the
shareholder's address of record.

Shares of the Class may be exchanged into any other Delaware Group
mutual fund provided: (1) the investment satisfies the eligibility and other
requirements set forth in the prospectus of the fund being acquired, including
the payment of any applicable front-end sales charge; and (2) the shares of the
fund being acquired are in a state where that fund is registered. If exchanges
are made into other shares that are eligible for purchase only by those
permitted to purchase shares of the Class, such shares will be exchanged at net
asset value. Shares of the Class may not be exchanged into the Class B Shares or
Class C Shares of the funds in the Delaware Group. The Fund may suspend,
terminate or amend the terms of the exchange privilege upon 60 days' written
notice to shareholders.

Various redemption and exchange methods are outlined below. No fee is
charged by the Fund or the Distributor for redeeming or exchanging your shares,
although, in the case of an exchange, a sales charge may apply. You may also
have your investment dealer arrange to have your shares redeemed or exchanged.
Your investment dealer may charge for this service.

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(GLOBAL-IEF-IC)

Written Redemption and Exchange
You can write to the Fund at 1818 Market Street, Philadelphia, PA 19103
to redeem some or all of your shares or to request an exchange of any or all
your shares into another mutual fund in the Delaware Group, subject to the same
conditions and limitations as other exchanges noted above. The request must be
signed by all owners of the account or your investment dealer of record.

For redemptions of more than $50,000, or when the proceeds are not sent
to the shareholder(s) at the address of record, the Fund requires a signature by
all owners of the account and may require a signature guarantee. Each signature
guarantee must be supplied by an eligible guarantor institution. The Fund
reserves the right to reject a signature guarantee supplied by an eligible
institution based on its creditworthiness. The Fund may require further
documentation from corporations, executors, retirement plans, administrators,
trustees or guardians.

You also may submit your written request for redemption or exchange by
facsimile transmission at the following number: 215-255-8864.

Telephone Redemption and Exchange
To get the added convenience of the telephone redemption and exchange
methods, you must have the Transfer Agent hold your shares (without charge) for
you. If you choose to have your shares in certificate form, you may redeem or
exchange only by written request and you must return your certificates.

The Telephone Redemption - Check to Your Address of Record service and
the Telephone Exchange service, both of which are described below, are
automatically provided unless you notify the Fund in writing that you do not
wish to have such services available with respect to your account. The Fund
reserves the right to modify, terminate or suspend these procedures upon 60
days' written notice to shareholders. It may be difficult to reach the Fund by
telephone during periods when market or economic conditions lead to an unusually
large volume of telephone requests.

Neither the Fund nor its Transfer Agent is responsible for any
shareholder loss incurred in acting upon written or telephone instructions for
redemption or exchange of Fund shares which are reasonably believed to be
genuine. With respect to such telephone transactions, the Fund will follow
reasonable procedures to confirm that instructions communicated by telephone are
genuine (including verification of a form of personal identification) as, if it
does not, the Fund or the Transfer Agent may be liable for any losses due to
unauthorized or fraudulent transactions. A written confirmation will be provided
for all purchase, exchange and redemption transactions initiated by telephone.
By exchanging shares by

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(GLOBAL-IEF-IC)

telephone, you are acknowledging prior receipt of a prospectus for the fund into
which your shares are being exchanged.

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(GLOBAL-IEF-IC)

DIVIDENDS AND DISTRIBUTIONS

Global Funds, Inc. declares a dividend on the Fund to all shareholders
of record of the Class of that Fund at the time the offering price of shares is
determined. See Purchase Price and Effective Date under How to Buy Shares. Thus,
when redeeming shares, dividends continue to be credited up to and including the
date of redemption. The Fund will normally declare and make payments from net
investment income on a quarterly basis.

The Class will share proportionately in the investment income and
expenses of the Fund, except that the Class will not incur any distribution fee
under Global Funds, Inc.'s 12b-1 Plans which apply to Class A Shares, Class B
Shares and Class C Shares.

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(GLOBAL-IEF-IC)

TAXES

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<PAGE>

(GLOBAL-IEF-IC)

such taxes against their U.S. income tax, subject to certain limitations under
the Code. Shareholders will be informed by the Fund at the end of each calendar
year regarding the availability of any credits on and the amount of foreign
source income to be included in their income tax returns.

In addition to federal taxes, shareholders may be subject to state and
local taxes on distributions. Distributions of interest income and capital gains
realized from certain types of U.S. government securities may be exempt from
state personal income taxes. Shares of the Fund are exempt from Pennsylvania
county personal property taxes.

The Fund is required to withhold 31% of taxable dividends, capital
gains distributions, and redemptions paid to shareholders who have not complied
with IRS taxpayer identification regulations. You may avoid this withholding
requirement by certifying on your Investment Application your proper Taxpayer
Identification Number and by certifying that you are not subject to backup
withholding.

See Accounting and Tax Issues and Distributions and Taxes in Part B for
additional information on tax matters relating to the Fund and its shareholders.

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(GLOBAL-IEF-IC)

CALCULATION OF NET ASSET VALUE PER SHARE

The NAV per share is computed by adding the value of all securities and
other assets in the Fund's portfolio, deducting any liabilities of the Fund
(expenses and fees are accrued daily) and dividing by the number of the Fund's
shares outstanding. Portfolio securities for which market quotations are
available are priced at market value. Debt securities are priced at fair value
by an independent pricing service using methods approved by Global Funds, Inc.'s
Board of Directors. Short-term investments having a maturity of less than 60
days are valued at amortized cost, which approximates market value. All other
securities are valued at their fair value as determined in good faith and in a
method approved by Global Funds, Inc.'s Board of Directors.

The net asset values of all outstanding shares of each class of the
Fund will be computed on a pro-rata basis for each outstanding share based on
the proportionate participation in the Fund represented by the value of shares
of that class. All income earned and expenses incurred by the Fund will be borne
on a pro-rata basis by each outstanding share of a class, based on each class'
percentage in the Fund represented by the value of shares of such classes,
except that the Class will not incur any of the expenses under the Fund's 12b-1
Plans and Class A, Class B and Class C Shares of the Fund alone will bear the
12b-1 Plan expenses payable under their respective 12b-1 Plans. Due to the
specific distribution expenses and other costs that will be allocable to each
class, the net asset value of each class of the Fund will vary.

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(GLOBAL-IEF-IC)

MANAGEMENT OF THE FUND

Delaware is an indirect, wholly owned subsidiary of Delaware Management
Holdings, Inc. ("DMH"). Delaware International is also controlled by DMH through
several subsidiaries. On April 3, 1995, a merger between DMH and a wholly owned
subsidiary of Lincoln National Corporation ("Lincoln National") was completed.
DMH, Delaware and the Manager are now indirect, wholly owned subsidiaries, and
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. In connection with the merger, a new
Investment Management Agreement between Global Funds, Inc., on behalf of
International Equity Fund, and the Manager, was executed following shareholder
approval.

Beginning December 1, 1995, Delaware International elected voluntarily
to waive that portion, if any, of the annual management fees payable by
International Equity Fund and to reimburse expenses to the extent necessary to
ensure that the Total Operating Expenses (exclusive of taxes, interest,
brokerage commissions and extraordinary expenses) of the Class do not exceed
1.55% through November 30, 1996. This voluntary waiver has been extended through
November 30, 1997. From June 1, 1994 through November 30, 1994, Delaware
International elected voluntarily to waive that portion, if any, of the annual
management fees payable by International Equity Fund and to reimburse expenses
to the extent necessary to ensure that the Total Operating Expenses (exclusive
of taxes, interest, brokerage commission and extraordinary expenses) of the
Class did not exceed 1.50%. Prior to June 1, 1994, a waiver and reimbursement
commitment was in place to ensure expenses of the Class did not exceed 0.95%
(exclusive of taxes, interest brokerage commissions and extraordinary expenses).

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(GLOBAL-IEF-IC)

Performance Information
From time to time, the Fund may quote total return performance of the
Class in advertising and other types of literature. Total return will be based
on a hypothetical $1,000 investment, reflecting the reinvestment of all
distributions at net asset value. Each presentation will include the average
annual total

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(GLOBAL-IEF-IC)

return for one-, five- and ten-year (or life of fund, if applicable) periods.
The Fund may also advertise aggregate and average total return information
concerning the Class over additional periods of time.

Because securities prices fluctuate, investment results of the Class
will fluctuate over time. Past performance is not considered a guarantee of
future results.

Distribution and Service
The Distributor, Delaware Distributors, L.P., serves as the national
distributor of the Fund's shares, under a Distribution Agreement with Global
Funds, Inc. dated April 3, 1995, as amended on November 29, 1995. The
Distributor bears all of the costs of promotion and distribution.

The Transfer Agent, Delaware Service Company, Inc., serves as the
shareholder servicing, dividend disbursing and transfer agent for the Fund under
an amended and restated agreement. The Transfer Agent also provides accounting
services to the Fund pursuant to the terms of a separate Fund Accounting
Agreement. The directors annually review service fees paid to the Transfer
Agent. Certain recordkeeping services and other shareholder services that
otherwise would be performed by the Transfer Agent may be performed by certain
other entities and the Transfer Agent may elect to enter into an agreement to
pay such other entities for those services. In addition, participant account
maintenance fees may be assessed for certain recordkeeping services provided as
part of retirement plan and administration service packages. These fees are
based on the number of participants in the plan and the various services
selected. Fees will be quoted upon request and are subject to change.

The Distributor and the Transfer Agent are indirect, wholly owned
subsidiaries of DMH.

Expenses
The Fund is responsible for all of its own expenses other than those
borne by the Manager under the Investment Management Agreement and those borne
by the Distributor under the Distribution Agreement. For the fiscal year ended
November 30, 1996, the ratio of operating expenses to average daily net assets
for the Class was 1.55%. The ratio reflects the impact of the voluntary waiver
and payment of fees noted above.

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(GLOBAL-IEF-IC)

Global Funds, Inc. is an open-end management investment company.
Commonly known as a mutual fund, Global Funds, Inc. was organized as a Maryland
corporation on May 30, 1991. Global Funds, Inc. currently offers six series of
shares - International Equity Series, Global Bond Series, Global Assets Series,
Emerging Markets Series, International Small Cap Series and Global Equity
Series. Fund shares have a par value of $.01 and when issued will be fully paid,
non-assessable, fully transferable and redeemable at the option of the holder.
The shares have no preference as to conversion, exchange, dividends, retirement
or other features and have no preemptive rights. The Fund will vote separately
on any matter which affects only the Fund. Shares of the Fund have a priority
over shares of any other fund of Global Funds, Inc. in the assets and income of
the Fund.

In addition to Institutional Class shares, International Equity Fund
offers International Equity Fund A Class, International Equity Fund B Class and
International Equity Fund C Class. Shares of each class represent proportionate
interests in the assets of the Fund and have the same voting and other rights
and preferences as the other classes of the Fund, except that shares of the
Class are not subject to, and may not vote on matters affecting, the
Distribution Plans under Rule 12b-1 relating to Class A, Class B and Class C
Shares.

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(GLOBAL-IEF-IC)

OTHER INVESTMENT POLICIES AND RISK CONSIDERATIONS

Portfolio Loan Transactions
The Fund may loan up to 25% of its assets to qualified broker/dealers
or institutional investors for their use relating to short sales or other
security transactions.

Restricted and Illiquid Securities

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(GLOBAL-IEF-IC)

The Fund may invest in restricted securities, including securities
eligible for resale without registration pursuant to Rule 144A ("Rule 144A
Securities") under the Securities Act of 1933. Rule 144A permits many privately
placed and legally restricted securities to be freely traded among certain
institutional buyers, such as the Fund. See Rule 144A Securities, below. The
Fund may invest no more than 10% of the value of its net assets in illiquid
securities. In the event this percentage limitation is exceeded, whether due to
to changes in market values, because a security becomes illiquid or otherwise,
the Manager will take steps to remedy these circumstances in an orderly fashion.

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<PAGE>

(GLOBAL-IEF-IC)

time of the contract. The Fund will convert currency on a spot basis from time
to time, and investors should be aware of the costs of currency conversion.

Options

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(GLOBAL-IEF-IC)

The Manager may employ options techniques in an attempt to protect
appreciation attained and to take advantage of the liquidity available in the
options market. The Fund may purchase call options on foreign or U.S. securities
and indices and enter into related closing transactions. The Fund may also
purchase put options on such securities and indices and enter into related
closing transactions.

A call option enables the purchaser, in return for the premium paid, to
purchase securities from the writer of the option at an agreed price up to an
agreed date. The advantage is that the purchaser may hedge against an increase
in the price of securities it ultimately wishes to buy or take advantage of a
rise in a particular index. The Fund will only purchase call options to the
extent that premiums paid on all outstanding call options do not exceed 2% of
its total assets.

A put option enables the purchaser of the option, in return for the
premium paid, to sell the security underlying the option to the writer at the
exercise price during the option period, and the writer of the option has the
obligation to purchase the security from the purchaser of the option. The Fund
will only purchase put options to the extent that the premiums on all
outstanding put options do not exceed 2% of its total assets. The advantage is
that the purchaser can be protected should the market value of the security
decline or should a particular index decline.

In purchasing put and call options, the premium paid by the Fund plus
any transaction costs will reduce any benefit realized by the Fund upon exercise
of the option.

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(GLOBAL-IEF-IC)

to deliver the securities or foreign currency underlying the contract at a
specified price on a specified date during a specified future month. To the
extent that the Fund invests in futures contracts and options thereon for other
than bona fide hedging purposes, the Fund will not enter into such transactions
if, immediately thereafter, the sum of the amount of initial margin deposits and
premiums paid for open futures options would exceed 5% of the Fund's total
assets, after taking into account unrealized profits and unrealized losses on
such contracts it has entered into; provided, however, that, in the case of an
option that is in-the-money at the time of purchase, the in-the-money amount may
be excluded in calculating the 5%.

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<PAGE>

(GLOBAL-IEF-IC)

For more information, call Delaware Group at
800-828-5052.

INVESTMENT MANAGER
Delaware International Advisers Ltd.
Veritas House
125 Finsbury Pavement
London, England EC2A 1NQ

NATIONAL DISTRIBUTOR
Delaware Distributors, L.P.
1818 Market Street
Philadelphia, PA 19103

SHAREHOLDER SERVICING,
DIVIDEND DISBURSING,
ACCOUNTING SERVICES
AND TRANSFER AGENT
Delaware Service Company, Inc.
1818 Market Street
Philadelphia, PA 19103

LEGAL COUNSEL
Stradley, Ronon, Stevens & Young, LLP
One Commerce Square
Philadelphia, PA 19103

INDEPENDENT AUDITORS
Ernst & Young LLP
Two Commerce Square
Philadelphia, PA 19103

CUSTODIAN
The Chase Manhattan Bank
4 Chase Metrotech Center
Brooklyn, NY 11245

<PAGE>

- -----------------------------------------------------------------------

INTERNATIONAL EQUITY FUND
INSTITUTIONAL

- ------------------------------------------------------------------------

P R O S P E C T U S

- -----------------------------------------------------------------------

JULY 21 , 1997

DELAWARE
GROUP
-------

<PAGE>

(GLOBAL-GEF-IC)

GLOBAL EQUITY FUND INSTITUTIONAL

PROSPECTUS
JULY 21, 1997

----------------------------------------

1818 Market Street, Philadelphia, PA 19103

For more information about
Global Equity Fund Institutional Class
call Delaware at 800-828-5052

This Prospectus describes shares of the Global Equity Series (the
"Fund" or "Global Equity Fund") of Delaware Group Global & International Funds,
Inc. ("Global Funds, Inc."), a professionally-managed mutual fund of the series
type.

Global Equity Fund's investment objective is to achieve long-term
growth without undue risk to principal. The Fund seeks to achieve this objective
by investing in global securities that provide the potential for capital
appreciation and income. See Investment Objective and Strategy.

The Fund offers Global Equity Fund Institutional Class of shares (the
"Class"). This Prospectus relates only to the Class and sets forth information
that you should read and consider before you invest. Please retain it for future
reference. The Fund's Statement of Additional Information ("Part B" of Global
Funds, Inc.'s registration statement), dated July 21, 1997, as it may be amended
from time to time, contains additional information about the Fund and has been
filed with the Securities and Exchange Commission. Part B is incorporated by
reference into this Prospectus and is available, without charge, by writing to
Delaware Distributors, L.P. at the above address or by calling the above
telephone number.

The Fund also offers Class A Shares, Class B Shares and Class C Shares.
Shares of these classes are subject to sales charges and other expenses, which
may affect their performance. A prospectus for those classes can be obtained by
writing to Delaware Distributors, L.P. at the above address or by calling the
above number.

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(GLOBAL-GEF-IC)

TABLE OF CONTENTS

Cover Page How to Buy Shares
Synopsis Redemption and Exchange
Summary of Expenses Dividends and Distributions
Investment Objective and Strategy Taxes
Suitability Calculation of Net Asset Value Per Share
Investment Strategy Management of the Fund
Special Risk Considerations Other Investment Policies and
Classes of Shares Risk Considerations

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(GLOBAL-GEF-IC)

SYNOPSIS

Investment Objective

The investment objective of the Fund is to achieve long-term growth
without undue risk to principal. The Fund seeks to achieve this objective by
investing in global equity securities that provide the potential for capital
appreciation and income. The Fund is a global fund. As such, at least 65% of the
Fund's total assets will be invested in equity securities of issuers organized
or having a majority of their assets in or deriving a majority of their income
in at least three different countries, one of which may be the United States.
For further details, see Investment Objective and Strategy and Other Investment
Policies and Risk Considerations.

Risk Factors and Special Considerations

Prospective investors should consider a number of factors:

2. The Fund has the right to engage in options and futures transactions
for hedging purposes, to counterbalance portfolio volatility. In connection with
futures transactions, the Fund will maintain certain collateral in special
accounts established with futures commission merchants directly or for their
benefit in the care of The Chase Manhattan Bank (the "Custodian Bank"). While
the Fund does not engage in options and futures for speculative purposes, there
are risks which result from the use of these instruments, and an investor should
carefully review the descriptions of these risks in this Prospectus. See Options
and Futures Contracts and Options on Futures Contracts under Other Investment
Policies and Risk Considerations.

Investment Manager, Sub-Adviser, Distributor and Service Agent
Delaware International Advisers Ltd. ("Delaware International" or the
"Manager") is the investment manager for the Fund and, in that capacity,
provides investment advice to the Fund, subject to the supervision of Global
Funds, Inc.'s Board of Directors. Delaware Management Company, Inc. ("Delaware"
or the "Sub-Adviser") is the investment sub-adviser for the Fund and, in that
capacity, provides investment advice relating to U.S. securities. Delaware
Distributors, L.P. (the "Distributor") is the national distributor for the Fund
and for all of the other mutual funds in the Delaware Group. Delaware Service
Company, Inc. (the "Transfer Agent") is the shareholder servicing, dividend
disbursing, accounting services and transfer agent for the Fund and for all of
the other mutual funds in the Delaware Group.

See Summary of Expenses and Management of the Fund for further
information regarding the Manager and the Sub-Adviser and the fees payable under
the Fund's Investment Management Agreement and the Sub-Advisory Agreement on
behalf of the Fund.

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<PAGE>
(GLOBAL-GEF-IC)

Redemption and Exchange

Shares of the Class are redeemed or exchanged at the net asset value
calculated after receipt of the redemption or exchange request. See Redemption
and Exchange.

Open-End Investment Company
Global Funds, Inc. is an open-end, registered management investment
company and Global Equity Fund operates as a diversified fund as defined under
the Investment Company Act of 1940 (the "1940 Act"). Global Funds, Inc. was
organized as a Maryland corporation on May 30, 1991. See Shares under Management
of the Fund.

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<PAGE>

(GLOBAL-GEF-IC)

SUMMARY OF EXPENSES
<TABLE>
<CAPTION>

Global Equity Fund
Shareholder Transaction Expenses Institutional Class
- --------------------------------- -------------------
<S> <C>
Maximum Sales Charge Imposed on Purchases
(as a percentage of offering price)............................................ None

Maximum Sales Charge Imposed on Reinvested Dividends
(as a percentage of offering price)............................................ None

Exchange Fees.................................................................. None*
</TABLE>

* Exchanges are subject to the requirements of each fund and a front-end
sales charge may apply.

Annual Operating Expenses Global Equity Fund
(as a percentage of average daily net assets) Institutional Class
- --------------------------------------------- -------------------

<S> <C>
Management Fees (after voluntary waivers)...................................... 0.00%**

12b-1 Plan Expenses............................................................ None

Other Operating Expenses (after voluntary payments)............................ 0.80%**

Total Operating Expenses
(after voluntary waivers and payments).................................... 0.80%**

</TABLE>

- -----------------

** "Other Operating Expenses" and "Total Operation Expenses" for the Class are
based on estimated amounts for the first full fiscal year of the Class,
after giving effect to voluntary fee waiver and expense payments. Delaware
International has elected voluntarily to waive that portion, if any, of the
annual management fees payable by the Fund and to pay certain expenses of
the Fund to the extent necessary to ensure that the Total Operating Expenses
of the Class do not exceed 0.80%, from the commencement of the public
offering of the Class through December 31, 1997. Absent the voluntary fee
waiver and payments, it is estimated that for the first full year, the Total
Operating Expenses (as a percentage of average daily net assets) would be
2.31%, reflecting management fees of 0.80%.

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(GLOBAL-GEF-IC)

For expense information about the Fund's A Class, B Class and C Class,
see the separate prospectus relating to those classes.

The following example illustrates the expenses that an investor would
pay on a $1,000 investment over various time periods, assuming (1) a 5% annual
rate of return and (2) redemption at the end of each time period. The following
example assumes the voluntary waiver of the management fee and/or other payments
of expenses by the Manager as discussed in this Prospectus.

1 year 3 years
------ -------
Institutional Global Equity
Fund Institutional Class $8 $26

This example should not be considered a representation of past or future
expenses or performance. Actual expenses may be greater or less than those
shown.

The purpose of the above tables is to assist the investor in
understanding the various costs and expenses that an investor in the Class will
bear directly or indirectly.

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<PAGE>
(GLOBAL-GEF-IC)

INVESTMENT OBJECTIVE AND STRATEGY

SUITABILITY
Investors considering an investment in Global Equity Fund should have a
long-term investment time frame.

The Fund may be suitable for investors with a long-term investment
horizon (at least 3 years) who are looking for long-term growth potential from a
portfolio of international securities.

Ownership of shares of the Fund reduces the bookkeeping and
administrative inconveniences that would be involved with direct purchases of
the securities held in the Fund's portfolio.

The Fund will attempt to achieve its objective by investing in
securities traded in equity markets and currencies that the Manager and
Sub-Adviser believe offer the best relative value within the global investment
universe. A dividend discount model will be employed to assess value across
country boundaries. When using a dividend discount analysis to value individual
equity markets, the Manager and Sub-Adviser will look at future anticipated

-7-
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(GLOBAL-GEF-IC)

dividends and discount the value of those dividends back to what they would be
worth if they were being paid today. The Manager and Sub-Adviser will use this
technique to attempt to compare the value of different investments.

The Fund may also seek to achieve growth through investment in income
producing debt securities such as U.S. or foreign government or corporate bonds.
In addition, for temporary defensive purposes, the Fund may invest all or a
substantial portion of its assets in high quality debt instruments issued by
foreign governments, their agencies, instrumentalities or political
subdivisions, the U.S. government, its agencies or instrumentalities (and which
are backed by the full faith and credit of the U.S. government), or issued by
foreign or U.S. companies. For example, the Fund may invest in U.S. fixed-income
markets when the Manager believes that the global equity markets are excessively
volatile or overvalued so that the Fund's objective cannot be achieved in such
markets. Any corporate debt obligations will be rated AA or better by Standard &
Poor's Ratings Group ("S&P"), Aa or better by Moody's Investors Service, Inc.
("Moody's") or have an equivalent rating from another nationally recognized
statistical rating organization, or if unrated, will be determined to be of
comparable quality by the Manager. The Fund may also invest in the securities
listed above pending investment of proceeds from new sales of Fund shares and to
maintain sufficient cash to meet redemption requests.

Restricted and Illiquid Securities

The Fund may invest in restricted securities, including securities
eligible for resale without registration pursuant to Rule 144A ("Rule 144A
Securities") under the Securities Act of 1933 (the "1933 Act"). Rule 144A
permits many privately placed and legally restricted securities to be freely
traded among certain institutional buyers, such as the Fund. See Rule 144A
Securities under Other Investment Policies and Risk Considerations. The Fund may
invest up to 15% of the value of its net assets in illiquid securities which are
securities which may not be disposed of within seven days at the price at which
they are carried on the Fund's books. In the event this percentage limitation
is exceeded, whether due to changes in the market value of the Fund's illiquid
holdings or because a particular security is deemed to have become illiquid, the
Manager will take steps to remedy these circumstances in an orderly fashion.

* * *

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<PAGE>
(GLOBAL-GEF-IC)

Foreign Securities Risk. The Fund has the right to purchase securities
in any developed, underdeveloped or emerging country. Investors should consider
carefully the substantial risks involved in investing in securities issued by
companies and governments of foreign nations. These risks are in addition to the
usual risks inherent in domestic investments. There is the possibility of
expropriation, nationalization or confiscatory taxation, taxation of income
earned in foreign nations or other taxes imposed with respect to investments in
foreign nations, foreign exchange control (which may include suspension of the
ability to transfer currency from a given country), default in foreign
government securities, political or social instability or diplomatic
developments which could affect investments in securities of issuers in those
nations.

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<PAGE>
(GLOBAL-GEF-IC)

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<PAGE>
(GLOBAL-GEF-IC)

may be conditioned on the government's implementation of economic reforms and/or
economic performance and the timely service of its obligations. Failure to
implement such reforms, achieve such levels of economic performance or repay
principal or interest when due may curtail the willingness of such third parties
to lend funds, which may further impair the issuer's ability or willingness to
service its debts in a timely manner. The cost of servicing external debt will
also generally be adversely affected by rising international interest rates
because many external debt obligations bear interest at rates which are adjusted
based upon international interest rates. The ability to service external debt
will also depend on the level of the relevant government's international
currency reserves and its access to foreign exchange. Currency devaluations may
affect the ability of a government issuer to obtain sufficient foreign exchange
to service its external debt.

-11-
<PAGE>

(GLOBAL-GEF-IC)

CLASSES OF SHARES

Investment instructions given on behalf of participants in an
employer-sponsored retirement plan are made in accordance with directions
provided by the employer. Employees considering purchasing shares of the Class
as part of their retirement program should contact their employer for details.

Class A Shares, Class B Shares and Class C Shares
In addition to offering Global Equity Fund Institutional Class of
shares, Global Equity Fund also offers: Global Equity Fund A Class, Global
Equity Fund B Class and Global Equity Fund C Class, which are described in a
separate prospectus. Shares of such classes may be purchased through authorized
investment dealers or directly by contacting the Fund or its Distributor. Class
A Shares carry a front-end sales charge and have annual 12b-1 expenses equal to
a maximum of 0.30%. The maximum front-end sales charge as a percentage of the
offering price of Class A Shares is 4.75% and is reduced on certain transactions
of $100,000 or more. Class B Shares and Class C Shares have no front-end sales
charge but are subject to annual 12b-1 expenses equal to a maximum of 1%. Class
B Shares and Class C Shares and certain Class A Shares may be subject to a
contingent deferred sales charge upon redemption. To obtain a prospectus
relating to such classes, contact the Distributor by writing to the address or
by calling the phone number listed on the back cover of this Prospectus.

-12-
<PAGE>

(GLOBAL-GEF-IC)

HOW TO BUY SHARES

The Fund makes it easy to invest by mail, by wire, by exchange and by
arrangement with your investment dealer. In all instances, investors must
qualify to purchase shares of the Class.

2. Subsequent Purchases--You may make additional investments anytime
by wiring funds to CoreStates Bank, N.A., as described above. You must advise
your Client Services Representative by telephone at 800-828-5052 prior to
sending your wire.

Investing by Exchange
If you have an investment in another mutual fund in the Delaware Group
and you qualify to purchase shares of the Class, you may write and authorize an
exchange of part or all of your investment into the Fund. However, Class B
Shares and Class C Shares of the Fund and Class B Shares and Class C Shares of
the other funds in the Delaware Group offering such a class of shares may not be
exchanged into the Class. If you wish to open an account by exchange, call your
Client Services Representative at 800-828-5052 for more information. See
Redemption and Exchange for more complete information concerning your exchange
privileges.

-13-
<PAGE>
(GLOBAL-GEF-IC)

electronic transfer or check is received, unless it is received after the time
the share price is determined, as noted above. Purchase orders received after
such time will be effective the next business day.

The Conditions of Your Purchase
The Fund reserves the right to reject any purchase order. If a purchase
is canceled because your check is returned unpaid, you are responsible for any
loss incurred. The Fund can redeem shares from your account(s) to reimburse
itself for any loss, and you may be restricted from making future purchases in
any of the funds in the Delaware Group. The Fund reserves the right to reject
purchases by third-party checks or checks 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, you may be subject to additional bank charges
for clearance and currency conversion.

The Fund also reserves the right, upon 60 days' written notice, to
involuntarily redeem accounts that remain under $250 as a result of redemptions.

-14-
<PAGE>

(GLOBAL-GEF-IC)

REDEMPTION AND EXCHANGE

Shares of the Class may be exchanged into any other Delaware Group
mutual fund provided: (1) the investment satisfies the eligibility and other
requirements set forth in the prospectus of the fund being acquired, including
the payment of any applicable front-end sales charge; and (2) the shares of the
fund being acquired are in a state where that fund is registered. If exchanges
are made into other shares that are eligible for purchase only by those
permitted to purchase shares of the Class, such shares will be exchanged at net
asset value. Shares of the Class may not be exchanged into Class B Shares or
Class C Shares of the funds in the Delaware Group. The Fund may suspend,
terminate or amend the terms of the exchange privilege upon 60 days' written
notice to shareholders.

-15-
<PAGE>
(GLOBAL-GEF-IC)

You also may submit your written request for redemption or exchange by
facsimile transmission at the following number: 215-255-8864.

Telephone Redemption and Exchange
To get the added convenience of the telephone redemption and exchange
methods, you must have the Transfer Agent hold your shares (without charge) for
you. If you choose to have your shares in certificate form, you may redeem or
exchange only by written request and you must return your certificates.

The Telephone Redemption - Check to Your Address of Record service and
the Telephone Exchange service, both of which are described below, are
automatically provided unless you notify the Fund in writing that you do not
wish to have such services available with respect to your account. The Fund
reserves the right to modify, terminate or suspend these procedures upon 60
days' written notice to shareholders. It may be difficult to reach the Fund by
telephone during periods when market or economic conditions lead to an unusually
large volume of telephone requests.

Neither the Fund nor its Transfer Agent is responsible for any
shareholder loss incurred in acting upon written or telephone instructions for
redemption or exchange of Fund shares which are reasonably believed to be
genuine. With respect to such telephone transactions, the Fund will follow
reasonable procedures to confirm that instructions communicated by telephone are
genuine (including verification of a form of personal identification) as, if it
does not, the Fund or the Transfer Agent may be liable for any losses due to
unauthorized or fraudulent transactions. A written confirmation will be provided
for all purchase, exchange and redemption transactions initiated by telephone.
By exchanging shares by telephone, you are acknowledging prior receipt of a
prospectus for the fund into which your shares are being exchanged.

-16-
<PAGE>

(GLOBAL-GEF-IC)

-17-
<PAGE>

(GLOBAL-GEF-IC)

DIVIDENDS AND DISTRIBUTIONS

Global Funds, Inc. declares a dividend on the Fund to all shareholders
of record of the Class at the time the offering price of shares is determined.
See Purchase Price and Effective Date under How to Buy Shares. Thus, when
redeeming shares, dividends continue to be credited up to and including the date
of redemption.

-18-
<PAGE>

(GLOBAL-GEF-IC)

TAXES

-19-
<PAGE>
(GLOBAL-GEF-IC)

In addition to federal taxes, shareholders may be subject to state and
local taxes on distributions. Distributions of interest income and capital gains
realized from certain types of U.S. government securities may be exempt from
state personal income taxes. Shares of the Fund are exempt from Pennsylvania
county personal property taxes.

See Accounting and Tax Issues and Distributions and Taxes in Part B for
additional information on tax matters relating to the Fund and its shareholders.

-20-
<PAGE>

(GLOBAL-GEF-IC)

CALCULATION OF NET ASSET VALUE PER SHARE

The net asset values of all outstanding shares of each class of the
Fund will be computed on a pro-rata basis for each outstanding share based on
the proportionate participation in the Fund represented by the value of shares
of that class. All income earned and expenses incurred by the Fund will be borne
on a pro-rata basis by each outstanding share of a class, based on each class'
percentage in the Fund represented by the value of shares of such classes,
except that the Class will not incur any of the expenses under the Fund's 12b-1
Plans and Class A, Class B and Class C Shares of the Fund alone will bear the
12b-1 Plan expenses payable under their respective 12b-1 Plans. Due to the
specific distribution expenses and other costs that will be allocable to each
class, the net asset value of each class of the Fund will vary.

-21-
<PAGE>

(GLOBAL-GEF-IC)

MANAGEMENT OF THE FUND

Delaware and its predecessors have been managing the funds in the
Delaware Group since 1938. On April 30, 1997, Delaware and its affiliates within
the Delaware Group, including Delaware International, were managing in the
aggregate more than $32 billion in assets in various institutional or separately
managed (approximately $20,676,606,000) and investment company (approximately
$11,935,210,000) accounts.

Delaware International has elected voluntarily to waive that portion,
if any, of the annual management fees payable by Global Equity Fund and to pay
expenses of the Fund to the extent necessary to ensure that the Total Operating
Expenses (exclusive of taxes, interest, brokerage commissions and extraordinary
expenses) of the Class do not exceed 0.80% through December 31, 1997.

Elizabeth Desmond has primary responsibility for making day-to-day
investment decisions for the Fund and has had such responsibility since its
inception. Ms. Desmond is a graduate of Wellesley College and the masters
program in East Asian studies at Stanford University. After working for the
Japanese government for two years, she began her investment career as a Pacific
Basin investment manager with Shearson Lehman Global Asset Management. Prior to
joining Delaware in the Spring of 1991, she was a Pacific Basin equity analyst
and senior portfolio manager at Hill Samuel Investment Advisers Ltd. Ms. Desmond
is a CFA charterholder. Robert L. Arnold, Vice President/Portfolio Manager for
the Fund, has responsibility for making investment decisions for the U.S. equity
portion of Global Equity Fund and has had such responsibility for the Fund since

-22-
<PAGE>
(GLOBAL-GEF-IC)

its inception. Prior to this at the Delaware Group, he was a financial analyst
focusing on the financial services industry including banks, thrifts, insurance
companies and consumer finance companies. He holds a BS from Carnegie Mellon
University and earned an MBA from the University of Chicago. He began his
investment career as a management consultant with Arthur Young in Philadelphia.
Prior to joining Delaware Group in March 1992, Mr. Arnold was a planning analyst
with Chemical Bank in New York.

The Manager and the Sub-Adviser use their best efforts to obtain the
best available price and most favorable execution for portfolio transactions.
Orders may be placed with brokers or dealers who provide brokerage and research
services to the Manager or the Sub-Adviser or their advisory clients. These
services may be used by the Manager and the Sub-Adviser in servicing any of
their respective accounts. Subject to best price and execution, the Manager and
the Sub-Adviser may consider a broker/dealer's sales of shares of funds in the
Delaware Group of funds in placing portfolio orders and may place orders with
broker/dealers that have agreed to defray certain expenses of such funds, such
as custodian fees.

Performance Information
From time to time, the Fund may quote total return performance of the
Class in advertising and other types of literature.

Because securities prices fluctuate, investment results of the Class
will fluctuate over time. Past performance is not considered a guarantee of
future results.

-23-
<PAGE>
(GLOBAL-GEF-IC)

The Distributor and the Transfer Agent are indirect, wholly owned
subsidiaries of DMH.

Global Funds, Inc. is an open-end management investment company.
Commonly known as a mutual fund, Global Funds, Inc. was organized as a Maryland
corporation on May 30, 1991. Global Funds, Inc. currently offers six series of
shares - International Equity Series, Global Bond Series, Global Assets Series,
Emerging Markets Series, International Small Cap Series and Global Equity
Series. Fund shares have a par value of $.01 and when issued will be fully paid,
non-assessable, fully transferable and redeemable at the option of the holder.
The shares have no preference as to conversion, exchange, dividends, retirement
or other features and have no preemptive rights. The Fund will vote separately
on any matter which affects only that Fund. Shares of the Fund have a priority
over shares of any other fund of Global Funds, Inc. in the assets and income of
the Fund.

In addition to Institutional Class shares, Global Equity Fund offers
Global Equity Fund A Class, Global Equity Fund B Class and Global Equity Fund C
Class. Shares of each class represent proportionate interests in the assets of
the Fund and have the same voting and other rights and preferences as the other
classes of the Fund, except that shares of the Class are not subject to, and may
not vote on matters affecting, the Distribution Plans under Rule 12b-1 relating
to Class A, Class B and Class C Shares.

-24-
<PAGE>

(GLOBAL-GEF-IC)

OTHER INVESTMENT POLICIES AND RISK CONSIDERATIONS

Portfolio Loan Transactions
The Fund may loan up to 25% of its assets to qualified broker/dealers
or institutional investors for their use relating to short sales or other
security transactions.

Rule 144A Securities
While maintaining oversight, the Board of Directors of Global Funds,
Inc. has delegated to the Manager the day-to-day functions of determining
whether or not individual Rule 144A Securities are liquid for purposes of the
Fund's 15% limitation on investments in illiquid assets. The Board has
instructed the Manager to consider the following factors in determining the
liquidity of a Rule 144A Security: (i) the frequency of trades and trading
volume for the security; (ii) whether at least three dealers are willing to
purchase or sell the security and the number of potential purchasers; (iii)
whether at least two dealers are making a market in the security; and (iv) the
nature of the security and the nature of the marketplace trades (e.g., the time
needed to dispose of the security, the method of soliciting offers, and the
mechanics of transfer).

-25-
<PAGE>
(GLOBAL-GEF-IC)

If the Manager determines that a Rule 144A Security which was
previously determined to be liquid is no longer liquid and, as a result, the
Fund's holdings of illiquid securities exceed the Fund's 15% limitation on
investments in such securities, the Manager will determine what action to take
to ensure that the Fund continues to adhere to its respective limitation.

-26-
<PAGE>
(GLOBAL-GEF-IC)

foreign currency. The Fund may realize a gain or loss from currency
transactions.

A call option enables the purchaser, in return for the premium paid, to
purchase securities from the writer of the option at an agreed price up to an
agreed date. The advantage is that the purchaser may hedge against an increase
in the price of securities it ultimately wishes to buy or take advantage of a
rise in a particular index. The Fund will only purchase call options to the
extent that premiums paid on all outstanding call options do not exceed 2% of
its total assets.

A put option enables the purchaser of the option, in return for the
premium paid, to sell the security underlying the option to the writer at the
exercise price during the option period, and the writer of the option has the
obligation to purchase the security from the purchaser of the option. The Fund
will only purchase put options to the extent that the premiums on all
outstanding put options do not exceed 2% of its total assets. The advantage is
that the purchaser can be protected should the market value of the security
decline or should a particular index decline.

-27-
<PAGE>
(GLOBAL-GEF-IC)

In purchasing put and call options, the premium paid by the Fund plus
any transaction costs will reduce any benefit realized by the Fund upon exercise
of the option.

The Fund may use both Exchange-traded and over-the-counter options.
Certain over-the-counter options may be illiquid. The Fund will only invest in
such options to the extent consistent with its 15% limitation on investment in
illiquid securities. The Fund will comply with U.S. Securities and Exchange
Commission asset segregation and coverage requirements when engaging in these
types of transactions.

The Fund may also purchase and write options to buy or sell futures
contracts. Options on futures are similar to options on securities except that
options on futures give the purchaser the right, in return for the premium paid,
to assume a position in a futures contract, rather than actually to purchase or
sell the futures contract, at a specified exercise price at any time during the
period of the option. When the Fund enters into a futures transaction, it must
deliver to the futures commission merchant selected by the Fund an amount
referred to as "initial margin." This amount is maintained by the futures
commission merchant directly or on its behalf in an account at the Custodian
Bank. Thereafter, a "variation margin" may be paid by the Fund to, or drawn by
the Fund from, such account in accordance with controls set for such accounts,
depending upon changes in the price of the underlying securities subject to the
futures contract.

-28-
<PAGE>

(GLOBAL-GEF-IC)

For more information, call Delaware Group at 800-828-5052.

INVESTMENT MANAGER
Delaware International Advisers Ltd.
Veritas House
125 Finsbury Pavement
London, England EC2A 1NQ

SUB-ADVISER
Delaware Management Company, Inc.
One Commerce Square
Philadelphia, PA 19103

NATIONAL DISTRIBUTOR
Delaware Distributors, L.P.
1818 Market Street
Philadelphia, PA 19103

SHAREHOLDER SERVICING,
DIVIDEND DISBURSING,
ACCOUNTING SERVICES
AND TRANSFER AGENT
Delaware Service Company, Inc.
1818 Market Street
Philadelphia, PA 19103

LEGAL COUNSEL
Stradley, Ronon, Stevens & Young, LLP
One Commerce Square
Philadelphia, PA 19103

INDEPENDENT AUDITORS
Ernst & Young LLP
Two Commerce Square
Philadelphia, PA 19103

CUSTODIAN
The Chase Manhattan Bank
4 Chase Metrotech Center
Brooklyn, NY 11245

<PAGE>

- --------------------------------------------------

GLOBAL EQUITY FUND INSTITUTIONAL

- --------------------------------------------------

PROSPECTUS

- --------------------------------------------------

JULY 21, 1997

DELAWARE
GROUP
===========

<PAGE>
(SAI-DGG&I/PART B)

- --------------------------------------------------------------------------------

PART B--STATEMENT OF ADDITIONAL INFORMATION
JULY 21, 1997
- --------------------------------------------------------------------------------

DELAWARE GROUP GLOBAL & INTERNATIONAL FUNDS, INC.

- --------------------------------------------------------------------------------

1818 Market Street
Philadelphia, PA 19103

- --------------------------------------------------------------------------------

For more information about Institutional Classes: 800-828-5052

For Prospectus and Performance of Class A Shares,
Class B Shares and Class C Shares:
Nationwide 800-523-4640

Information on Existing Accounts of Class A Shares,
Class B Shares and Class C Shares:
(SHAREHOLDERS ONLY) Nationwide 800-523-1918

Dealer Services: (BROKER/DEALERS ONLY) Nationwide 800-362-7500
- --------------------------------------------------------------------------------

TABLE OF CONTENTS

- --------------------------------------------------------------------------------

Cover Page
- --------------------------------------------------------------------------------

Investment Policies and Portfolio Techniques
- --------------------------------------------------------------------------------

Accounting and Tax Issues
- --------------------------------------------------------------------------------

Performance Information
- --------------------------------------------------------------------------------

Trading Practices and Brokerage
- --------------------------------------------------------------------------------

Purchasing Shares
- --------------------------------------------------------------------------------

Investment Plans
- --------------------------------------------------------------------------------

Determining Offering Price and Net Asset Value
- --------------------------------------------------------------------------------

Redemption and Repurchase
- --------------------------------------------------------------------------------

Distributions
- --------------------------------------------------------------------------------

Investment Management Agreements and Sub-Advisory Agreements
- --------------------------------------------------------------------------------

Officers and Directors
- --------------------------------------------------------------------------------

Exchange Privilege
- --------------------------------------------------------------------------------

General Information
- --------------------------------------------------------------------------------

Appendix A -- IRA Information
- --------------------------------------------------------------------------------

Financial Statements
- --------------------------------------------------------------------------------

-1-

<PAGE>

(SAI-DGG&I/PART B)

Delaware Group Global & International Funds, Inc. ("Global Funds,
Inc.") is a professionally-managed mutual fund of the series type. This
Statement of Additional Information ("Part B" of the registration statement)
describes the International Equity Series ("International Equity Fund"),
International Small Cap Series ("International Small Cap Fund"), Global Bond
Series ("Global Bond Fund"), Global Assets Series ("Global Assets Fund"),
Emerging Markets Series ("Emerging Markets Fund") and Global Equity Series
("Global Equity Fund") (individually, a "Fund" and collectively, the "Funds") of
Global Funds, Inc. International Equity Fund, International Small Cap Fund,
Global Bond Fund, Global Assets Fund, Emerging Markets Fund and Global Equity
Fund offer, respectively, International Equity Fund A Class, International
Small Cap Fund A Class, Global Bond Fund A Class, Global Assets Fund A Class,
Emerging Markets Fund A Class and Global Equity Fund A Class ("Class A
Shares"), International Equity Fund B Class, International Small Cap Fund B
Class, Global Bond Fund B Class, Global Assets Fund B Class, Emerging Markets
Fund B Class and Global Equity Fund B Class ("Class B Shares"), and
International Equity Fund C Class, International Small Cap Fund C Class, Global
Bond Fund C Class, Global Assets Fund C Class, Emerging Markets Fund C Class and
Global Equity Fund C Class ("Class C Shares") (Class A Shares, Class B Shares
and Class C Shares together, the "Fund Classes") and International Equity Fund
Institutional Class, International Small Cap Fund Institutional Class, Global
Bond Fund Institutional Class, Global Assets Fund Institutional Class, Emerging
Markets Fund Institutional Class and Global Equity Fund Institutional Class (the
"Institutional Classes").

Class B Shares, Class C Shares and Institutional Class shares of a Fund
may be purchased at a price equal to the next determined net asset value per
share. Class A Shares may be purchased at the public offering price, which is
equal to the next determined net asset value per share, plus a front-end sales
charge. Class A Shares are subject to a maximum front-end sales charge of 4.75%
and annual 12b-1 Plan expenses of up to 0.30%, which are assessed against Class
A Shares for the life of the investment. Class B Shares are subject to a
contingent deferred sales charge ("CDSC") which may be imposed on redemptions
made within six years of purchase and annual 12b-1 Plan expenses of up to 1%,
which are assessed against Class B Shares for approximately eight years after
purchase. See Automatic Conversion of Class B Shares under Classes of Shares in
the Prospectuses for the Fund Classes. Class C Shares are subject to a CDSC
which may be imposed on redemptions made within 12 months of purchase and annual
12b-1 Plan expenses of up to 1%, which are assessed against Class C Shares for
the life of the investment. All references to "shares" in this Part B refer to
all Classes of shares of each Fund, except where noted.

This Part B supplements the information contained in the current
Prospectuses for the Fund Classes dated July 21, 1997, and the current
Prospectuses for the Institutional Classes dated July 21, 1997, as they may be
amended from time to time. Part B should be read in conjunction with the
respective class' Prospectus. Part B is not itself a prospectus but is, in its
entirety, incorporated by reference into each class' Prospectus. Prospectuses
relating to the Fund Classes and Prospectuses relating to the Institutional
Classes may be obtained by writing or calling your investment dealer or by
contacting the Funds' national distributor, Delaware Distributors, L.P. (the
"Distributor"), 1818 Market Street, Philadelphia, PA 19103.

-2-

<PAGE>

(SAI-DGG&I/PART B)

INVESTMENT POLICIES AND PORTFOLIO TECHNIQUES

Investment Restrictions
Global Funds, Inc. has adopted the following restrictions for each Fund
(except where otherwise noted) which, along with its investment objective,
cannot be changed without approval by the holders of a "majority" of the
respective Fund's outstanding shares, which is a vote by the holders of the
lesser of a) 67% or more of the voting securities present in person or by proxy
at a meeting, if the holders of more than 50% of the outstanding voting
securities are present or represented by proxy; or b) more than 50% of the
outstanding voting securities. The percentage limitations contained in the
restrictions and policies set forth herein apply at the time of purchase of
securities.

Each Fund (other than International Small Cap Fund and Global Equity
Fund) shall not:
1. For International Equity Fund and Global Equity Fund, as to
75% of their respective total assets, and for Global Bond, Global Assets and
Emerging Markets Funds, as to 50% of their respective total assets, invest more
than 5% of their respective total assets in the securities of any one issuer
(other than obligations issued, or guaranteed by, the U.S. government, its
agencies or instrumentalities).

2. For International Equity, Global Bond and Global Assets Funds,
invest in securities of other open-end investment companies, except as part of a
merger, consolidation or other acquisition. This limitation does not prohibit a
Fund from investing in the securities of closed-end investment companies at
customary brokerage commission rates. Emerging Markets Fund may invest in
securities of open-end, closed-end and unregistered investment companies, in
accordance with the limitations contained in the Investment Company Act of 1940,
as amended (the "1940 Act").

3. Make loans, except to the extent that purchases of debt obligations
(including repurchase agreements) in accordance with a Fund's investment
objective and policies, are considered loans and except that the Fund may loan
up to 25% of its assets to qualified broker/dealers or institutional investors
for their use relating to short sales or other security transactions.

4. Purchase or sell real estate or real estate limited partnerships,
but this shall not prevent a Fund from investing in securities secured by real
estate or interests therein.

5. For International Equity Fund, purchase more than 10% of the
outstanding voting securities of any issuer, or invest in companies for the
purpose of exercising control or management.

6. Engage in the underwriting of securities of other issuers, except
that, in connection with the disposition of a security, the Fund may be deemed
to be an "underwriter" as that term is defined in the Securities Act of 1933
(the "1933 Act").

7. Make any investment which would cause 25% or more of its total
assets to be invested in the securities of issuers all of which conduct their
principal business activities in the same industry. This restriction does not
apply to obligations issued or guaranteed by the U.S. government, its agencies
or instrumentalities.

8. For International Equity Fund, write, purchase or sell options,
puts, calls or combinations thereof, except that such Fund may: (a) purchase
call options to the extent that the premiums paid on all outstanding call
options do not exceed 2% of such Fund's total assets; (b) write secured put
options; (c) write covered call options; and (d) purchase put options if such
Fund owns the security covered by the put option at

-3-

<PAGE>

(SAI-DGG&I/PART B)

the time of purchase, and provided that premiums paid on all put options
outstanding do not exceed 2% of its total assets. Such Fund may sell put or call
options previously purchased and enter into closing transactions with respect to
the activities noted above.

9. Purchase or sell commodities or commodity contracts, except that
each Fund may enter into futures contracts and options on futures contracts in
accordance with its respective prospectuses, subject to investment restriction
10 below.

10. Enter into futures contracts or options thereon, except that a Fund
may enter into futures contracts and options thereon to the extent that not more
than 5% of the Fund's assets are required as futures contract margin deposits
and premiums on options and only to the extent that obligations under such
contracts and transactions represent not more than 20% of the Fund's assets.

11. Make short sales of securities, or purchase securities on margin,
except that a Fund may satisfy margin requirements with respect to futures
transactions.

12. For International Equity Fund, invest more than 5% of the value of
its total assets in securities of companies less than three years old. Such
three-year period shall include the operation of any predecessor company or
companies.

13. For International Equity Fund, purchase or retain the securities of
any issuer which has an officer, director or security holder who is a director
or officer of Global Funds, Inc. or of its investment manager if or so long as
the directors and officers of Global Funds, Inc. and of its investment manager
together own beneficially more than 5% of any class of securities of such
issuer.

14. For International Equity Fund, invest in interests in oil, gas or
other mineral exploration or development programs or leases.

15. For International Equity Fund, invest more than 10% of the Fund's
total assets in repurchase agreements maturing in more than seven days and other
illiquid assets, and for Emerging Markets Fund, invest more than 15% of the
Fund's total assets in repurchase agreements maturing in more than seven days
and other illiquid assets.

16. Borrow money in excess of one-third of the value of its net assets
and then only as a temporary measure for extraordinary purposes or to facilitate
redemptions. Any borrowing will be done from a bank and to the extent that such
borrowing exceeds 5% of the value of a Fund's net assets, asset coverage of at
least 300% is required. In the event that such asset coverage shall at any time
fall below 300%, a Fund shall, within three days thereafter (not including
Sunday or holidays) or such longer period as the Securities and Exchange
Commission (the "SEC") may prescribe by rules and regulations, reduce the amount
of its borrowings to such an extent that the asset coverage of such borrowings
shall be at least 300%. A Fund will not pledge more than 10% of its net assets.
A Fund will not issue senior securities as defined in the 1940 Act, except for
notes to banks.

Although not considered to be a fundamental policy, restriction 5 above
will apply to each of the Funds of Global Funds, Inc. as a whole. In addition,
although not considered a fundamental policy, for purposes of restriction 15
above, securities of foreign issuers which are not listed on a recognized
domestic or foreign exchange or for which a bona fide market does not exist at
the time of purchase or subsequent valuation are

-4-

<PAGE>

(SAI-DGG&I/PART B)

included in the category of illiquid assets. As to International Equity Fund,
Global Assets Fund and Emerging Markets Fund, although not considered to be a
fundamental investment restriction, each Fund will invest no more than 5% of its
respective assets in warrants. Investment restrictions 5, 8, 12, 13, 14 and 15
above are nonfundamental policies of Global Bond Fund, Global Assets Fund and
Emerging Markets Fund. Investment restrictions 1 and 2 above are nonfundamental
policies of Emerging Markets Fund.

Global Funds, Inc. has adopted the following restrictions for
International Small Cap Fund and Global Equity Fund which, along with their
investment objectives, cannot be changed without the approval by a "majority" of
each Fund's outstanding shares, as described above. The percentage limitations
contained in these restrictions and policies apply at the time the Fund
purchases securities.

International Small Cap Fund and Global Equity Fund shall not:

1. As to 75% of its total assets, invest more than 5% of its total
assets in the securities of any one issuer (other than obligations issued, or
guaranteed by, the U.S. government, its agencies or instrumentalities).

2. Invest 25% or more of its total assets in any one industry provided
that there is no limitation with respect to investments in obligations issued or
guaranteed as to principal or interest by the U.S. Government, its agencies or
instrumentalities.

3. Make loans other than by the purchase of all or a portion of a
publicly or privately distributed issue of bonds, debentures or other debt
securities of the types commonly offered publicly or privately and purchased by
financial institutions (including repurchase agreements), whether or not the
purchase was made upon the original issuance of the securities, and except that
the Fund may loan its assets to qualified broker/dealers or institutional
investors.

4. Engage in underwriting of securities of other issuers, except that
portfolio securities, including securities purchased in private placements, may
be acquired under circumstances where, if sold, the Fund might be deemed to be
an underwriter under the Securities Act of 1933. No limit is placed on the
proportion of the Fund's assets which may be invested in such securities.

5. Borrow money or issue senior securities, except to the extent
permitted by the 1940 Act or any rule or order thereunder or interpretation
thereof. Subject to the foregoing, the Fund may engage in short sales, purchase
securities on margin, and write put and call options.

6. Purchase or sell physical commodities or physical commodity
contracts, including physical commodity options or futures contracts in a
contract market or other futures market.

7. Purchase or sell real estate; provided that the Fund may invest in
securities secured by real estate or interests therein or issued by companies
which invest in real estate or interests therein.

Foreign Securities
Investors should recognize that investing in foreign issuers involves
certain considerations, including those set forth in the Funds' Prospectuses,
which are not typically associated with investing in United States issuers.
Since the stocks of foreign companies are frequently denominated in foreign
currencies, and since a Fund may temporarily hold uninvested reserves in bank
deposits in foreign currencies, a Fund will be affected favorably or unfavorably
by changes in currency rates and in exchange control regulations, and may incur
costs

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(SAI-DGG&I/PART B)

in connection with conversions between various currencies. The investment
policies of each Fund permit it to enter into forward foreign currency exchange
contracts in order to hedge each Fund's holdings and commitments against changes
in the level of future currency rates. Such contracts involve an obligation to
purchase or sell a specific currency at a future date at a price set at the time
of the contract.

There has been in the past, and there may be again in the future, an
interest equalization tax levied by the United States in connection with the
purchase of foreign securities such as those purchased by a Fund. Payment of
such interest equalization tax, if imposed, would reduce a Fund's rate of return
on its investment. Dividends paid by foreign issuers may be subject to
withholding and other foreign taxes which may decrease the net return on such
investments as compared to dividends paid to a Fund by United States
corporations. Special rules govern the federal income tax treatment of certain
transactions denominated in terms of a currency other than the U.S. dollar or
determined by reference to the value of one or more currencies other than the
U.S. dollar. The types of transactions covered by the special rules generally
include the following: (i) the acquisition of, or becoming the obligor under, a
bond or other debt instrument (including, to the extent provided in Treasury
Regulations, preferred stock); (ii) the accruing of certain trade receivables
and payables; and (iii) the entering into or acquisition of any forward
contract, futures contract, option and similar financial instruments other than
any "regulated futures contract" or "nonequity option" marked to market. The
disposition of a currency other than the U.S. dollar by a U.S. taxpayer is also
treated as a transaction subject to the special currency rules. However, foreign
currency-related regulated futures contracts and nonequity options are generally
not subject to the special currency rules, if they are or would be treated as
sold for their fair market value at year-end under the marking to market rules
applicable to other futures contracts, unless an election is made to have such
currency rules apply. With respect to transactions covered by the special rules,
foreign currency gain or loss is calculated separately from any gain or loss on
the underlying transaction and is normally taxable as ordinary gain or loss. A
taxpayer may elect to treat as capital gain or loss foreign currency gain or
loss arising from certain identified forward contracts, futures contracts and
options that are capital assets in the hands of the taxpayer and which are not
part of a straddle. Certain transactions subject to the special currency rules
that are part of a "section 988 hedging transaction" (as defined in the Internal
Revenue Code of 1986, as amended (the "Code"), and the Treasury Regulations)
will be integrated and treated as a single transaction or otherwise treated
consistently for purposes of the Code. The income tax effects of integrating and
treating a transaction as a single transaction are generally to create a
synthetic debt instrument that is subject to the original discount provisions.
It is anticipated that some of the non-U.S. dollar denominated investments and
foreign currency contracts each Fund may make or enter into will be subject to
the special currency rules described above.

Repurchase Agreements
While each Fund is permitted to do so, it normally does not invest in
repurchase agreements, except to invest cash balances.

The funds in the Delaware Group have obtained an exemption from the
joint-transaction prohibitions of Section 17(d) of the 1940 Act to allow the
Delaware Group funds jointly to invest cash balances. Each Fund may invest cash
balances in a joint repurchase agreement in accordance with the terms of the
Order and subject generally to the conditions described below.

A repurchase agreement is a short-term investment by which the
purchaser acquires ownership of a debt security and the seller agrees to
repurchase the obligation at a future time and set price, thereby determining
the yield during the purchaser's holding period. Should an issuer of a
repurchase agreement fail to repurchase the underlying security, the loss to a
Fund, if any, would be the difference between the repurchase price and the
market value of the security. Each Fund will limit its investments in repurchase
agreements to those which

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(SAI-DGG&I/PART B)

Delaware International Advisers Ltd. (the "Manager"), under the guidelines of
the Board of Directors, determines to present minimal credit risks and which are
of high quality. In addition, a Fund must have collateral of at least 100% of
the repurchase price, including the portion representing a Fund's yield under
such agreements which is monitored on a daily basis.

Portfolio Loan Transactions
Each Fund may loan up to 25% of its assets to qualified broker/dealers
or institutional investors for their use relating to short sales or other
security transactions.

It is the understanding of the Manager that the staff of the SEC
permits portfolio lending by registered investment companies if certain
conditions are met. These conditions are as follows: 1) each transaction must
have 100% collateral in the form of cash, short-term U.S. government securities,
or irrevocable letters of credit payable by banks acceptable to Global Funds,
Inc. from the borrower; 2) this collateral must be valued daily and should the
market value of the loaned securities increase, the borrower must furnish
additional collateral to the Fund; 3) the Fund must be able to terminate the
loan after notice, at any time; 4) the Fund must receive reasonable interest on
any loan, and any dividends, interest or other distributions on the lent
securities, and any increase in the market value of such securities; 5) the Fund
may pay reasonable custodian fees in connection with the loan; and 6) the voting
rights on the lent securities may pass to the borrower; however, if the
directors of Global Funds, Inc. know that a material event will occur affecting
an investment loan, they must either terminate the loan in order to vote the
proxy or enter into an alternative arrangement with the borrower to enable the
directors to vote the proxy.

The major risk to which a Fund would be exposed on a loan transaction
is the risk that the borrower would go bankrupt at a time when the value of the
security goes up. Therefore, each Fund will only enter into loan arrangements
after a review of all pertinent facts by the Manager, under the supervision of
the Board of Directors, including the creditworthiness of the borrowing broker,
dealer or institution and then only if the consideration to be received from
such loans would justify the risk. Creditworthiness will be monitored on an
ongoing basis by the Manager.

Foreign Currency Transactions
A Fund may purchase or sell currencies and/or engage in forward foreign
currency transactions in order to expedite settlement of portfolio transactions
and to minimize currency value fluctuations.

Forward foreign currency contracts are traded in the interbank market
conducted directly between currency traders (usually large commercial banks) and
their customers. A forward contract generally has no deposit requirement, and no
commissions are charged at any stage for trades. A Fund will account for forward
contracts by marking to market each day at daily exchange rates.

When a Fund enters into a forward contract to sell, for a fixed amount
of U.S. dollars or other appropriate currency, the amount of foreign currency
approximating the value of some or all of a Fund's assets denominated in such
foreign currency, the Fund's Custodian Bank or subcustodian will place cash or
liquid high grade debt securities in a separate account of the Fund in an amount
not less than the value of the Fund's total assets committed to the consummation
of such forward contracts. If the additional cash or securities placed in the
separate account declines, additional cash or securities will be placed in the
account on a daily basis so that the value of the account will equal the amount
of a Fund's commitments with respect to such contracts.

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(SAI-DGG&I/PART B)

Options
Each Fund may purchase call options or purchase put options and will
not engage in option strategies for speculative purposes.

Each Fund may invest in options that are either listed on U.S. or
recognized foreign exchanges or traded over-the-counter. Certain
over-the-counter options may be illiquid. Thus, it may not be possible to close
options positions and this may have an adverse impact on a Fund's ability to
effectively hedge its securities. A Fund will not, however, invest more than 10%
(or, in the case of International Small Cap, Emerging Markets, or Global
Equity Funds, 15%) of its assets in illiquid securities.

Purchasing Call Options--Each Fund may purchase call options to the
extent that premiums paid by the Fund do not aggregate more than 2% of the
Fund's total assets. When a Fund purchases a call option, in return for a
premium paid by a Fund to the writer of the option, the Fund obtains the right
to buy the security underlying the option at a specified exercise price at any
time during the term of the option. The writer of the call option, who receives
the premium upon writing the option, has the obligation, upon exercise of the
option, to deliver the underlying security against payment of the exercise
price. The advantage of purchasing call options is that a Fund may alter
portfolio characteristics and modify portfolio maturities without incurring the
cost associated with portfolio transactions.

A Fund may, following the purchase of a call option, liquidate its
position by effecting a closing sale transaction. This is accomplished by
selling an option of the same series as the option previously purchased. A Fund
will realize a profit from a closing sale transaction if the price received on
the transaction is more than the premium paid to purchase the original call
option; a Fund will realize a loss from a closing sale transaction if the price
received on the transaction is less than the premium paid to purchase the
original call option.

Although a Fund will generally purchase only those call options for
which there appears to be an active secondary market, there is no assurance that
a liquid secondary market on an Exchange will exist for any particular option,
or at any particular time, and for some options no secondary market on an
Exchange may exist. In such event, it may not be possible to effect closing
transactions in particular options, with the result that a Fund would have to
exercise its options in order to realize any profit and would incur brokerage
commissions upon the exercise of such options and upon the subsequent
disposition of the underlying securities acquired through the exercise of such
options. Further, unless the price of the underlying security changes
sufficiently, a call option purchased by a Fund may expire without any value to
the Fund.

Purchasing Put Options--Each Fund may invest up to 2% of its total
assets in the purchase of put options. A Fund will, at all times during which it
holds a put option, own the security covered by such option.

A put option purchased by a Fund gives it the right to sell one of its
securities for an agreed price up to an agreed date. A Fund intends to purchase
put options in order to protect against a decline in the market value of the
underlying security below the exercise price less the premium paid for the
option ("protective puts"). The ability to purchase put options will allow a
Fund to protect unrealized gain in an appreciated security in its portfolio
without actually selling the security. If the security does not drop in value, a
Fund will lose the value of the premium paid. A Fund may sell a put option which
it has previously purchased prior to the sale of the securities underlying such
option. Such sale will result in a net gain or loss depending on whether the
amount received on the sale is more or less than the premium and other
transaction costs paid on the put option which is sold.

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<PAGE>

(SAI-DGG&I/PART B)

A Fund may sell a put option purchased on individual portfolio
securities. Additionally, a Fund may enter into closing sale transactions. A
closing sale transaction is one in which a Fund, when it is the holder of an
outstanding option, liquidates its position by selling an option of the same
series as the option previously purchased.

Futures
Each Fund may enter into contracts for the purchase or sale for future
delivery of securities or foreign currencies. While futures contracts provide
for the delivery of securities, deliveries usually do not occur. Contracts are
generally terminated by entering into an offsetting transaction. When a Fund
enters into a futures transaction, it must deliver to the futures commission
merchant selected by the Fund an amount referred to as "initial margin." This
amount is maintained by the futures commission merchant in an account at the
Fund's Custodian Bank. Thereafter, a "variation margin" may be paid by a Fund
to, or drawn by the Fund from, such account in accordance with controls set for
such accounts, depending upon changes in the price of the underlying securities
subject to the futures contract.

In addition, when a Fund engages in futures transactions, to the extent
required by the SEC, it will maintain with its Custodian Bank, assets in a
segregated account to cover its obligations with respect to such contracts,
which assets will consist of cash, cash equivalents or high quality debt
securities from its portfolio in an amount equal to the difference between the
fluctuating market value of such futures contracts and the aggregate value of
the margin payments made by a Fund with respect to such futures contracts.

Each Fund may enter into such futures contracts to protect against the
adverse affects of fluctuations in interest or foreign exchange rates without
actually buying or selling the securities or foreign currency. For example, if
interest rates are expected to increase, a Fund might enter into futures
contracts for the sale of debt securities. Such a sale would have much the same
effect as selling an equivalent value of the debt securities owned by a Fund. If
interest rates did increase, the value of the debt securities in the portfolio
would decline, but the value of the futures contracts to a Fund would increase
at approximately the same rate, thereby keeping the net asset value of the Fund
from declining as much as it otherwise would have. Similarly, when it is
expected that interest rates may decline, futures contracts may be purchased to
hedge in anticipation of subsequent purchases of securities at higher prices.
Since the fluctuations in the value of futures contracts should be similar to
those of debt securities, a Fund could take advantage of the anticipated rise in
value of debt securities without actually buying them until the market had
stabilized. At that time, the futures contracts could be liquidated and the Fund
could then buy debt securities on the cash market.

With respect to options on futures contracts, when a Fund is not fully
invested, it may purchase a call option on a futures contract to hedge against a
market advance due to declining interest rates. The purchase of a call option on
a futures contract is similar in some respects to the purchase of a call option
on an individual security. Depending on the pricing of the option compared to
either the price of the futures contract upon which it is based, or the price of
the underlying debt securities, it may or may not be less risky than ownership
of the futures contract or underlying debt securities. As with the purchase of
futures contracts, when a Fund is not fully invested, it may purchase a call
option on a futures contract to hedge against a market advance due to declining
interest rates.

The writing of a call option on a futures contract constitutes a
partial hedge against the declining price of the security or foreign currency
which is deliverable upon exercise of the futures contract. If the futures price
at the expiration of the option is below the exercise price, a Fund will retain
the full amount of the option premium which provides a partial hedge against any
decline that may have occurred in the Fund's portfolio

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<PAGE>

(SAI-DGG&I/PART B)

holdings. The writing of a put option on a futures contract constitutes a
partial hedge against the increasing price of the security or foreign currency
which is deliverable upon exercise of the futures contract. If the futures price
at the expiration of the option is higher than the exercise price, the Fund will
retain the full amount of the option premium which provides a partial hedge
against any increase in the price of securities which the Fund intends to
purchase.

If a put or call option a Fund has written is exercised, the Fund will
incur a loss which will be reduced by the amount of the premium it receives.
Depending on the degree of correlation between changes in the value of its
portfolio securities and changes in the value of its futures positions, a Fund's
losses from existing options on futures may, to some extent, be reduced or
increased by changes in the value of portfolio securities. The purchase of a put
option on a futures contract is similar in some respects to the purchase of
protective puts on portfolio securities. For example, a Fund will purchase a put
option on a futures contract to hedge the Fund's portfolio against the risk of
rising interest rates.

To the extent that interest rates move in an unexpected direction, a
Fund may not achieve the anticipated benefits of futures contracts or options on
futures contracts or may realize a loss. For example, if a Fund is hedged
against the possibility of an increase in interest rates which would adversely
affect the price of securities held in its portfolio and interest rates decrease
instead, the Fund will lose part or all of the benefit of the increased value of
its securities which it has because it will have offsetting losses in its
futures position. In addition, in such situations, if the Fund had insufficient
cash, it may be required to sell securities from its portfolio to meet daily
variation margin requirements. Such sales of securities may, but will not
necessarily, be at increased prices which reflect the rising market. A Fund may
be required to sell securities at a time when it may be disadvantageous to do
so.

Further, with respect to options on futures contracts, a Fund may seek
to close out an option position by writing or buying an offsetting position
covering the same securities or contracts and have the same exercise price and
expiration date. The ability to establish and close out positions on options
will be subject to the maintenance of a liquid secondary market, which cannot be
assured.

Options on Foreign Currencies
Each Fund may purchase and write options on foreign currencies for
hedging purposes in a manner similar to that in which futures contracts on
foreign currencies, or forward contracts, will be utilized. For example, a
decline in the dollar value of a foreign currency in which portfolio securities
are denominated will reduce the dollar value of such securities, even if their
value in the foreign currency remains constant. In order to protect against such
diminutions in the value of portfolio securities, a Fund may purchase put
options on the foreign currency. If the value of the currency does decline, a
Fund will have the right to sell such currency for a fixed amount in dollars and
will thereby offset, in whole or in part, the adverse effect on its portfolio
which otherwise would have resulted.

Conversely, where a rise in the dollar value of a currency in which
securities to be acquired are denominated is projected, thereby increasing the
cost of such securities, a Fund may purchase call options thereon. The purchase
of such options could offset, at least partially, the effects of the adverse
movement in exchange rates. As in the case of other types of options, however,
the benefit to a Fund deriving from purchases of foreign currency options will
be reduced by the amount of the premium and related transaction costs. In
addition, where currency exchange rates do not move in the direction or to the
extent anticipated, a Fund could sustain losses on transactions in foreign
currency options which would require it to forego a portion or all of the
benefits of advantageous changes in such rates.

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(SAI-DGG&I/PART B)

A Fund may write options on foreign currencies for the same types of
hedging purposes. For example, where a Fund anticipates a decline in the dollar
value of foreign currency denominated securities due to adverse fluctuations in
exchange rates, it could, instead of purchasing a put option, write a call
option on the relevant currency. If the expected decline occurs, the option will
most likely not be exercised, and the diminution in the value of portfolio
securities will be offset by the amount of the premium received.

Similarly, instead of purchasing a call option to hedge against an
anticipated increase in the dollar cost of securities to be acquired, a Fund
could write a put option on the relevant currency which, if rates move in the
manner projected, will expire unexercised and allow a Fund to hedge such
increased cost up to the amount of the premium. As in the case of other types of
options, however, the writing of a foreign currency option will constitute only
a partial hedge up to the amount of the premium, and only if rates move in the
expected direction. If this does not occur, the option may be exercised and the
Fund would be required to purchase or sell the underlying currency at a loss
which may not be offset by the amount of the premium. Through the writing of
options on foreign currencies, a Fund also may be required to forego all or a
portion of the benefit which might otherwise have been obtained from favorable
movements in exchange rates.

Each Fund intends to write covered call options on foreign currencies.
A call option written on a foreign currency by a Fund is "covered" if the Fund
owns the underlying foreign currency covered by the call or has an absolute and
immediate right to acquire that foreign currency without additional cash
consideration (or for additional cash consideration held in a segregated account
by the Custodian Bank) upon conversion or exchange of other foreign currency
held in its portfolio. A call option is also covered if the Fund has a call on
the same foreign currency and in the same principal amount as the call written
where the exercise price of the call held (a) is equal to or less than the
exercise price of the call written, or (b) is greater than the exercise price of
the call written if the difference is maintained by the Fund in cash, U.S.
government securities or other high-grade liquid debt securities in a segregated
account with its Custodian Bank.

With respect to writing put options, at the time the put is written, a
Fund will establish a segregated account with its Custodian Bank consisting of
cash, U.S. government securities or other high-grade liquid debt securities in
an amount equal in value to the amount the Fund will be required to pay upon
exercise of the put. The account will be maintained until the put is exercised,
has expired, or the Fund has purchased a closing put of the same series as the
one previously written.

In order to comply with the securities laws of one state, a Fund will
not write put or call options if the aggregate value of the securities
underlying the calls or obligations underlying the puts determined as of the
date the options are sold exceed 25% of the Fund's net assets. Should state laws
change or Global Funds, Inc. receive a waiver of their application for a Fund,
the Funds reserve the right to increase this percentage.

Options on Stock Indices
A stock index assigns relative values to the common stocks included in
the index with the index fluctuating with changes in the market values of the
underlying common stock.

Options on stock indices are similar to options on stocks but have
different delivery requirements. Stock options provide the right to take or make
delivery of the underlying stock at a specified price. A stock index option
gives the holder the right to receive a cash "exercise settlement amount" equal
to (i) the amount by which the fixed exercise price of the option exceeds (in
the case of a put) or is less than (in the case of a call) the closing value of
the underlying index on the date of exercise, multiplied by (ii) a fixed "index
multiplier." Receipt of this cash amount will depend upon the closing level of
the stock index upon which the option is

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(SAI-DGG&I/PART B)

based being greater than (in the case of a call) or less than (in the case of a
put) the exercise price of the option. The amount of cash received will be equal
to such difference between the closing price of the index and exercise price of
the option expressed in dollars times a specified multiple. The writer of the
option is obligated, in return for the premium received, to make delivery of
this amount. Gain or loss to a Fund on transactions in stock index options will
depend on price movements in the stock market generally (or in a particular
industry or segment of the market) rather than price movements of individual
securities.

As with stock options, a Fund may offset its position in stock index
options prior to expiration by entering into a closing transaction on an
Exchange or it may let the option expire unexercised.

A stock index fluctuates with changes in the market values of the stock
so included. Some stock index options are based on a broad market index such as
the Standard & Poor's 500 or the New York Stock Exchange Composite Index, or a
narrower market index such as the Standard & Poor's 100. Indices are also based
on an industry or market segment such as the AMEX Oil and Gas Index or the
Computer and Business Equipment Index. Options on stock indices are currently
traded on domestic exchanges such as: The Chicago Board Options Exchange, the
New York Stock Exchange and American Stock Exchange as well as on foreign
exchanges.

A Fund's ability to hedge effectively all or a portion of its
securities through transactions in options on stock indices depends on the
degree to which price movements in the underlying index correlate with price
movements in the Fund's portfolio securities. Since a Fund's portfolio will not
duplicate the components of an index, the correlation will not be exact.
Consequently, a Fund bears the risk that the prices of the securities being
hedged will not move in the same amount as the hedging instrument. It is also
possible that there may be a negative correlation between the index or other
securities which would result in a loss on both such securities and the hedging
instrument.

Positions in stock index options may be closed out only on an Exchange
which provides a secondary market. There can be no assurance that a liquid
secondary market will exist for any particular stock index option. Thus, it may
not be possible to close such an option. The inability to close options
positions could have an adverse impact on a Fund's ability effectively to hedge
its securities. A Fund will enter into an option position only if there appears
to be a liquid secondary market for such options.

A Fund will not engage in transactions in options on stock indices for
speculative purposes but only to protect appreciation attained and to take
advantage of the liquidity available in the option markets.

Rule 144A Securities
A Fund may invest in restricted securities, including unregistered
securities eligible for resale without registration pursuant to Rule 144A ("Rule
144A Securities") under the 1933 Act. Rule 144A Securities may be freely traded
among qualified institutional investors without registration under the 1933 Act.

Investing in Rule 144A Securities could have the effect of increasing
the level of a Fund's illiquidity to the extent that qualified institutional
buyers become, for a time, uninterested in purchasing these securities. After
the purchase of a Rule 144A Security, however, the Board of Directors and the
Manager will continue to monitor the liquidity of that security to ensure that a
Fund has no more than 10% (or, in the case of International Small Cap,
Emerging Markets and Global Equity Funds, 15%) of its net assets in illiquid
securities.

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(SAI-DGG&I/PART B)

Non-Traditional Equity Securities
International Small Cap Fund and Emerging Markets Fund may each
invest in convertible preferred stocks that offer enhanced yield features, such
as Preferred Equity Redemption Cumulative Stock ("PERCS"), which provide an
investor, such as the Funds, with the opportunity to earn higher dividend income
than is available on a company's common stock. A PERCS is a preferred stock
which generally features a mandatory conversion date, as well as a capital
appreciation limit which is usually expressed in terms of a stated price. Upon
the conversion date, most PERCS convert into common stock of the issuer (PERCS
are generally not convertible into cash at maturity). Under a typical
arrangement, if after a predetermined number of years the issuer's common stock
is trading at a price below that set by the capital appreciation limit, each
PERCS would convert to one share of common stock. If, however, the issuer's
common stock is trading at a price above that set by the capital appreciation
limit, the holder of the PERCS would receive less than one full share of common
stock. The amount of that fractional share of common stock received by the PERCS
holder is determined by dividing the price set by the capital appreciation limit
of the PERCS by the market price of the issuer's common stock. PERCS can be
called at any time prior to maturity, and hence do not provide call protection.
However, if called early, the issuer may pay a call premium over the market
price to the investor. This call premium declines at a preset rate daily, up to
the maturity date of the PERCS.

International Small Cap Fund and Emerging Markets Fund may also
invest in other enhanced convertible securities. These include but are not
limited to ACES (Automatically Convertible Equity Securities), PEPS
(Participating Equity Preferred Stock), PRIDES (Preferred Redeemable Increased
Dividend Equity Securities), SAILS (Stock Appreciation Income Linked
Securities), TECONS (Term Convertible Notes), QICS (Quarterly Income Cumulative
Securities) and DECS (Dividend Enhanced Convertible Securities). ACES, PEPS,
PRIDES, SAILS, TECONS, QICS, and DECS all have the following features: they are
company-issued convertible preferred stock; unlike PERCS, they do not have
capital appreciation limits; they seek to provide the investor with high current
income, with some prospect of future capital appreciation; they are typically
issued with three to four-year maturities; they typically have some built-in
call protection for the first two to three years; investors have the right to
convert them into shares of common stock at a preset conversion ratio or hold
them until maturity; and upon maturity, they will automatically convert to
either cash or a specified number of shares of common stock.

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(SAI-DGG&I/PART B)

ACCOUNTING AND TAX ISSUES

When a Fund writes a call, or purchases a put option, an amount equal
to the premium received or paid by it is included in the Fund's assets and
liabilities as an asset and as an equivalent liability.

In writing a call, the amount of the liability is subsequently "marked
to market" to reflect the current market value of the option written. The
current market value of a written option is the last sale price on the principal
Exchange on which such option is traded or, in the absence of a sale, the mean
between the last bid and asked prices. If an option which a Fund has written
expires on its stipulated expiration date, the Fund recognizes a capital gain.
If a Fund enters into a closing purchase transaction with respect to an option
which the Fund has written, the Fund realizes a gain (or loss if the cost of the
closing transaction exceeds the premium received when the option was sold)
without regard to any unrealized gain or loss on the underlying security, and
the liability related to such option is extinguished. If a call option which a
Fund has written is exercised, the Fund realizes a capital gain or loss from the
sale of the underlying security and the proceeds from such sale are increased by
the premium originally received.

The premium paid by a Fund for the purchase of a put option is recorded
in the Fund's assets and liabilities as an investment and subsequently adjusted
daily to the current market value of the option. For example, if the current
market value of the option exceeds the premium paid, the excess would be
unrealized appreciation and, conversely, if the premium exceeds the current
market value, such excess would be unrealized depreciation. The current market
value of a purchased option is the last sale price on the principal Exchange on
which such option is traded or, in the absence of a sale, the mean between the
last bid and asked prices. If an option which a Fund has purchased expires on
the stipulated expiration date, the Fund realizes a short-term or long-term
capital loss for federal income tax purposes in the amount of the cost of the
option. If a Fund exercises a put option, it realizes a capital gain or loss
(long-term or short-term, depending on the holding period of the underlying
security) from the sale of the underlying security and the proceeds from such
sale will be decreased by the premium originally paid.

Options on Certain Stock Indices
Accounting for options on certain stock indices will be in accordance
with generally accepted accounting principles. The amount of any realized gain
or loss on closing out such a position will result in a realized gain or loss
for tax purposes. Such options held by a Fund at the end of each fiscal year on
a broad-based stock index will be required to be "marked to market" for federal
income tax purposes. Generally, 60% of any net gain or loss recognized on such
deemed sales or on any actual sales will be treated as long-term capital gain or
loss, and the remainder will be treated as short-term capital gain or loss.

Other Tax Requirements
Each Fund, other than Global Equity Fund and International Small Cap
Fund, has qualified, and intends to continue to qualify, as a regulated
investment company under Subchapter M of the Code. Global Equity Fund and
International Small Cap Fund intend to qualify as a regulated investment
company under Subchapter M of the Code. Each Fund of Global Funds, Inc. must
meet several requirements to maintain its status as a regulated investment
company. Among these requirements are that at least 90% of its investment
company taxable income be derived from dividends, interest, payment with respect
to securities loans and gains from the sale or disposition of securities; that
at the close of each quarter of its taxable year at least 50% of the value of
its assets consist of cash and cash items, government securities, securities of
other regulated investment

-14-

<PAGE>

(SAI-DGG&I/PART B)

companies and, subject to certain diversification requirements, other
securities; and that less than 30% of its gross income be derived from sales of
securities held for less than three months.

The requirement that not more than 30% of a Fund's gross income be
derived from gains from the sale or other disposition of securities held for
less than three months may restrict a Fund in its ability to write covered call
options on securities which it has held less than three months, to write options
which expire in less than three months, to sell securities which have been held
less than three months and to effect closing purchase transactions with respect
to options which have been written less than three months prior to such
transactions. Consequently, in order to avoid realizing a gain within the
three-month period, a Fund may be required to defer the closing out of a
contract beyond the time when it might otherwise be advantageous to do so. A
Fund may also be restricted in the sale of purchased put options and the
purchase of put options for the purpose of hedging underlying securities because
of the application of the short sale holding period rules with respect to such
underlying securities.

The straddle rules of Section 1092 may apply. Generally, the straddle
provisions require the deferral of losses to the extent of unrecognized gains
related to the offsetting positions in the straddle. Excess losses, if any, can
be recognized in the year of loss. Deferred losses will be carried forward and
will be subject to the same limitation in subsequent years.

The federal income tax rules governing the taxation of interest rate
swaps are not entirely clear and may require Global Bond Fund to treat payments
received under such arrangements as ordinary income and to amortize such
payments under certain circumstances. Global Bond Fund will limit its activity
in this regard in order to maintain its qualification as a regulated investment
company.

-15-

<PAGE>

(SAI-DGG&I/PART B)

PERFORMANCE INFORMATION

From time to time, each Fund may state its Classes' total return in
advertisements and other types of literature. Any statement of total return
performance data for a Class will be accompanied by information on the average
annual compounded rate of return for that Class over, as relevant, the most
recent one-, five- and ten-year (or life of fund, if applicable) periods. Each
Fund may also advertise aggregate and average total return information for its
Classes over additional periods of time.

In presenting performance information for Class A Shares, the Limited
CDSC, applicable only to certain redemptions of those shares, will not be
deducted from any computation of total return. See the Prospectuses for the Fund
Classes for a description of the Limited CDSC and the limited instances in which
it applies. All references to a CDSC in this Performance Information section
will apply to Class B Shares or Class C Shares.

The average annual total rate of return for each Class is based on a
hypothetical $1,000 investment that includes capital appreciation and
depreciation during the stated periods. The following formula will be used for
the actual computations:
n
P(1 + T) = ERV

Where: P = a hypothetical initial purchase order of $1,000 from which, in
the case of only Class A Shares, the maximum front-end sales
charge is deducted;

T = average annual total return;

n = number of years;

ERV = redeemable value of the hypothetical $1,000 purchase at the end of
the period after the deduction of the applicable CDSC, if any,
with respect to Class B Shares and Class C Shares.

Aggregate or cumulative total return is calculated in a similar manner,
except that the results are not annualized. Each calculation assumes the maximum
front-end sales charge, if any, is deducted from the initial $1,000 investment
at the time it is made with respect to Class A Shares and that all distributions
are reinvested at net asset value, and, with respect to Class B Shares and Class
C Shares, reflects the deduction of the CDSC that would be applicable upon
complete redemption of such shares. In addition, each Fund may present total
return information that does not reflect the deduction of the maximum front-end
sales charge or any applicable CDSC.

The performance of the Classes of the Funds, as shown below, is the
average annual total return or aggregate total return quotations, as applicable,
through November 30, 1996.

The total return for Class A Shares at offer reflects the maximum
front-end sales charge of 4.75% paid on the purchase of shares. The total return
for Class A Shares at net asset value (NAV) does not reflect the payment of any
front-end sales charge. The total return for Class B Shares and Class C Shares
including

-16-

<PAGE>

(SAI-DGG&I/PART B)

deferred sales charge reflects the deduction of the applicable CDSC that would
be paid if the shares were redeemed on November 30, 1996. The total return for
Class B Shares and Class C Shares excluding deferred sales charge assumes the
shares were not redeemed on November 30, 1996 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.
Performance information for International Small Cap Fund and Global Equity
Fund is not provided because those Funds were not operating prior to the date of
this Statement of Additional Information.

Average Annual Total Return(1)

International Equity International Equity International Equity
Fund A Class Fund A Class Fund Institutional
(at Offer)(2) (at NAV) Class (3)
1 year ended
11/30/96 18.29% 24.22% 24.68%

3 years ended
11/30/96 11.82% 13.64% 13.97%

5 years ended
11/30/96 11.43% 12.52% 12.79%

Period 10/31/91(4)
through 11/30/96 10.45% 11.51% 11.78%

(1) Beginning December 1, 1995, the Manager had elected voluntarily to
waive that portion, if any, of the annual management fees payable by
International Equity Fund and to pay the Fund's expenses to the
extent necessary to ensure that the Total Operating Expenses of
International Equity Fund A Class and International Equity Fund
Institutional Class do not exceed 1.85% and 1.55%, respectively
(exclusive of taxes, interest, brokerage commissions and
extraordinary expenses, but inclusive of applicable 12b-1 expenses),
through November 30, 1997. From June 1, 1994 through November 30,
1994, a waiver and reimbursement commitment was in place to ensure
that Total Operating Expenses of International Equity Fund A Class
and 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.
Prior to June 1, 1994, a waiver and reimbursement commitment was in
place to ensure that expenses did not exceed 0.95% (exclusive of
taxes, interest, brokerage commissions, extraordinary expenses, and
12b-1 expenses) for International Equity Fund A Class and
International Equity Fund Institutional Class. In the absence of such
waiver, performance would have been affected negatively.

(2) Prior to November 29, 1995, the maximum front-end sales charge was
5.75%. Effective November 29, 1995, the maximum front-end sales
charge was reduced to 4.75%. The above performance numbers are
calculated using 4.75% as the applicable sales charge, and are more
favorable than they would have been had they been calculated using
the former front-end sales charge.

(3) Date of initial public offering of International Equity Fund
Institutional Class was November 9, 1992. Pursuant to applicable
regulation, total return shown for International Equity Fund
Institutional Class for the periods prior to the commencement of
operations of such Class is calculated by taking the performance of
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.

(4) Date of initial public offering of International Equity Fund A Class.

-17-

<PAGE>

(SAI-DGG&I/PART B)

Average Annual Total Return (1)

International Equity International Equity
Fund B Class Fund B Class
(Including (Excluding
Deferred Sales Deferred Sales
Charge) Charge)

1 year ended
11/30/96 19.38% 23.38%

Period 9/6/94(2)
through 11/30//96 8.49% 9.70%

(2) Date of initial public offering of International Equity Fund B Class.

Average Annual Total Return(1)

International Equity International Equity
Fund C Class Fund C Class
(Including Deferred (Excluding Deferred
Sales Charge) Sales Charge)

1 year ended
11/30/96 22.39% 23.39%

Period 11/29/95 (2) 22.75% 22.75%
through 11/30/96

(1) The Manager had elected voluntarily to waive that portion, if any, of
the annual management fees payable by International Equity Fund and
to pay the Fund's expenses to the extent necessary to ensure that the
Total Operating Expenses of International Equity Fund C Class do not
exceed 2.55% (exclusive of taxes, interest, brokerage commissions and
extraordinary expenses, but inclusive of applicable 12b-1 expenses)
through November 30, 1997. In the absence of such waiver,
performance would have been affected negatively.

(2) Date of initial public offering of International Equity Fund C Class.

-18-

<PAGE>

(SAI-DGG&I/PART B)

Average Annual Total Return(1)

Global Bond Global Bond Global Bond Fund
Fund A Class Fund A Class Institutional
(at Offer) (at NAV) Class
1 year ended
11/30/96 8.92% 14.35% 14.68%

Period 12/27/94(2)
through 11/30/96 14.29% 17.21% 17.60%

(1) The Manager had elected to voluntarily waive that portion, if any, of
the annual management fees payable by Global Bond Fund and to pay the
Fund's expenses to ensure that the Total Operating Expenses of Class
A Shares and Institutional Class shares of this Fund, respectively,
do not exceed 1.25% and 0.95% (in each case, exclusive of taxes,
interest, brokerage commissions and extraordinary expenses, but
inclusive of applicable 12b-1 expenses) through November 30, 1997. In
the absence of such waiver, performance would have been affected
negatively.

(2) Date of initial public offering of Global Bond Fund A Class and
Global Bond Fund Institutional Class.

Average Annual Total Return (1)

Global Bond Global Bond
Fund B Class Fund B Class
(Including (Excluding
Deferred Sales Deferred Sales
Charge) Charge)
1 year ended
11/30/96 9.51% 13.51%

Period 12/27/94(2)
through 11/30/96 14.66% 16.47%

(1) The Manager had elected to voluntarily waive that portion, if any, of
the annual management fees payable by Global Bond Fund and to pay the
Fund's expenses to ensure that the Total Operating Expenses of Class
B Shares of this Fund do not exceed 1.95% (exclusive of taxes,
interest, brokerage commissions and extraordinary expenses, but
inclusive of applicable 12b-1 expenses) through November 30, 1997.
In the absence of such waiver, performance would have been affected
negatively.

(2) Date of initial public offering of Global Bond Fund B Class.

-19-

<PAGE>

(SAI-DGG&I/PART B)

Average Annual Total Return(1)

Global Bond Global Bond
Fund C Class Fund C Class
(Including Deferred (Excluding Deferred
Sales Charge) Sales Charge)
1 year ended
11/30/96(2) 12.51% 13.51%

(1) The Manager had elected to voluntarily waive that portion, if any, of
the annual management fees payable by Global Bond Fund and to pay the
Fund's expenses to ensure that the Total Operating Expenses of Class C
Shares of this Fund do not exceed 1.95% (exclusive of taxes, interest,
brokerage commissions and extraordinary expenses, but inclusive of
applicable 12b-1 expenses) through November 30, 1997. In the absence
of such waiver, performance would have been affected negatively.

(2) Date of initial public offering of Global Bond Fund C Class was
November 29, 1995.

Average Annual Total Return(1)

Global Assets
Global Assets Global Assets Fund
Fund A Class Fund A Class Institutional
(at Offer)(2) (at NAV) Class
1 year ended
11/30/96 12.59% 18.17% 18.38%

Period 12/27/94(3)
through 11/30/96 17.60% 20.62% 20.93%

(1) The Manager had elected to voluntarily waive that portion, if any, of
the annual management fees payable by Global Assets Fund and to pay
the Fund's expenses to ensure that the Total Operating Expenses of
Class A Shares and Institutional Class shares, respectively, do not
exceed 1.25% and 0.95%, respectively, (in each case, exclusive of
taxes, interest, brokerage commissions and extraordinary expenses,
but inclusive of applicable 12b-1 expenses) through November 30,
1997. In the absence of such waiver, performance would have been
affected negatively.

(3) Date of initial public offering of Global Assets Fund A Class and
Institutional Class.

-20-

<PAGE>

(SAI-DGG&I/PART B)

Average Annual Total Return(1)

Global Assets Global Assets
Fund B Class Fund B Class
(Including (Excluding
Deferred Sales Deferred Sales
Charge) Charge)
1 year ended
11/30/96 13.32% 17.32%

Period 12/27/94(2)
through 11/30/96 18.01% 19.78%

(1) The Manager had elected to voluntarily waive that portion, if any, of
the annual management fees payable by Global Assets Fund and to pay
the Fund's expenses to ensure that the Total Operating Expenses of
Class B Shares do not exceed 1.95% (exclusive of taxes, interest,
brokerage commissions and extraordinary expenses, but inclusive of
applicable 12b-1 expenses) through November 30, 1997.

(2) Date of initial public offering of Global Assets Fund B Class.

Average Annual Total Return(1)

Global Assets Global Assets
Fund C Class Fund C Class
(Including Deferred (Excluding Deferred
Sales Charge) Sales Charge)
1 year ended
11/30/96(2) 16.33% 17.33%

(1) The Manager had elected to voluntarily waive that portion, if any, of
the annual management fees payable by Global Assets Fund and to pay
the Fund's expenses to ensure that the Total Operating Expenses of
Class C Shares of this Fund do not exceed 1.95% (exclusive of taxes,
interest, brokerage commissions and extraordinary expenses, but
inclusive of applicable 12b-1 expenses) through November 30, 1997.
In the absence of such waiver, performance would have been affected
negatively.

(2) Date of initial public offering of Global Assets Fund C Class was
November 29, 1995.

-21-

<PAGE>

(SAI-DGG&I/PART B)
Aggregate Total Return(1)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Emerging Markets
Emerging Markets Emerging Markets Fund
Fund A Class Fund A Class Institutional
(at Offer) (at NAV) Class
Period 6/10/96(2)
through 11/30/96 (5.05%) (0.30%) (0.10%)
</TABLE>

(1) The Manager had elected to voluntarily waive that portion, if any, of
the annual management fees payable by Emerging Markets Fund and to
pay the Fund's expenses to ensure that the Total Operating Expenses
of Class A Shares and Institutional Class shares, respectively, do
not exceed 2.00% and 1.70%, respectively (in each case, exclusive of
taxes, interest, brokerage commissions and extraordinary expenses,
but inclusive of applicable 12b-1 expenses), through November 30,
1997. In the absence of such waiver, performance would have been
affected negatively.

(2) Date of initial public offering of Emerging Markets Fund A Class and
Emerging Markets Fund Institutional Class; total return for this
short of a time period may not be representative of longer term
results.

Aggregate Total Return(1)

Emerging Markets Emerging Markets
Fund B Class Fund B Class
(Including Deferred (Excluding Deferred
Sales Charge) Sales Charge)
Period 6/10/96(2)
through 11/30/96 (4.58%) (0.60%)

(1) The Manager had elected to voluntarily waive that portion, if any, of
the annual management fees payable by Emerging Markets Fund and to
pay the Fund's expenses to ensure that the Total Operating Expenses
of Class B Shares of this Fund do not exceed 2.70% (exclusive of
taxes, interest, brokerage commissions and extraordinary expenses,
but inclusive of applicable 12b-1 expenses) through November 30,
1997. In the absence of such waiver, performance would have been
affected negatively.

(2) Date of initial public offering of Emerging Markets Fund B Class;
total return for this short of a time period may not be
representative of longer term results.

Aggregate Total Return(1)

Emerging Markets Emerging Markets
Fund C Class Fund C Class
(Including Deferred (Excluding Deferred
Sales Charge) Sales Charge)
Period 6/10/96(2)
through 11/30/96 (1.59%) (0.60%)

(1) The Manager had elected to voluntarily waive that portion, if any, of
the annual management fees payable by Emerging Markets Fund and to
pay the Fund's expenses to ensure that the Total Operating Expenses
of Class C Shares of this Fund do not exceed 2.70% (exclusive of
taxes, interest, brokerage commissions and extraordinary expenses,
but inclusive of applicable 12b-1 expenses) through November 30,
1997. In the absence of such waiver, performance would have been
affected negatively.

(2) Date of initial public offering of Emerging Markets Fund C Class;
total return for this short of a time period may not be
representative of longer term results.

-22-

<PAGE>
(SAI-DGG&I/PART B)

Each Fund may also state total return performance for its Classes in
the form of an average annual return. This average annual return figure will be
computed by taking the sum of a Class' annual returns, then dividing that figure
by the number of years in the overall period indicated. The computation will
reflect the impact of the maximum front-end sales charge or CDSC, if any, paid
on the illustrated investment amount against the first year's return. From time
to time, each Fund may quote actual total return performance for its Classes in
advertising and other types of literature compared to indices or averages of
alternative financial products available to prospective investors. For example,
the performance comparisons may include the average return of various bank
instruments, some of which may carry certain return guarantees offered by
leading banks and thrifts as monitored by Bank Rate Monitor, and those of
generally-accepted corporate bond and government security price indices of
various durations prepared by Lehman Brothers and Salomon Brothers, Inc. These
indices are not managed for any investment goal.

Total return performance for a Class will be computed by adding all
reinvested income and realized securities profits distributions plus the change
in net asset value during a specific period and dividing by the offering price
at the beginning of the period. It will also reflect, as applicable, the maximum
front-end sales charge or CDSC paid with respect to the illustrated investment
amount, but not any income taxes payable by shareholders on the reinvested
distributions included in the calculation. Because securities prices fluctuate,
past performance should not be considered as a representation of the results
which may be realized from an investment in a Fund in the future.

From time to time, each Fund may also quote its Classes' actual total
return performance, dividend results and other performance information in
advertising and other types of literature and may compare that information to,
or may separately illustrate similar information reported by, the Standard &
Poor's 500 Stock Index and the Dow Jones Industrial Average and other unmanaged
indices.

The Standard & Poor's 500 Stock Index and the Dow Jones Industrial
Average are industry-accepted unmanaged indices of generally-conservative
securities used for measuring general market performance. The total return
performance reported for these indices will reflect the reinvestment of all
distributions on a quarterly basis and market price fluctuations. The indices do
not take into account any sales charges or other fees.

As stated in the Prospectuses, Global Bond Fund may also quote the
current yield of each of its Classes in advertisements and investor
communications.

-23-

<PAGE>

(SAI-DGG&I/PART B)

The yield computation is determined by dividing the net investment
income per share earned during the period by the maximum offering price per
share on the last day of the period and annualizing the resulting figure,
according to the following formula.

a-b 6
YIELD = 2[( ----- + 1) - 1]
cd

Where: a = dividends and interest earned during the period;

b = expenses accrued for the period (net of reimbursements);

c = the average daily number of shares outstanding during the
period that were entitled to receive dividends;

d = the maximum offering price per share on the last day of the
period.

The above formula will be used in calculating quotations of yield,
based on specific 30-day periods identified in advertising by Global Bond Fund.
Yield assumes the maximum front-end sales charge, if any, and does not reflect
the deduction of any CDSC or Limited CDSC. The yields of Global Bond Fund A
Class, Global Bond Fund B Class, Global Bond Fund C Class and Global Bond Fund
Institutional Class as of November 30, 1996 were 4.82%, 4.34%, 4.34% and 5.34%,
respectively, reflecting the waiver of fees by the Manager. Actual yield may be
affected by variations in sales charges on investments.

Past performance, such as reflected in quoted yields, should not be
considered as representative of the results which may be realized from an
investment in a Fund in the future. Investors should note that the income earned
and dividends paid by Global Bond Fund and Global Assets Fund will vary with the
fluctuation of interest rates and performance of the portfolio to the extent of
a Fund's investments in debt securities. The net asset value of any Fund may
change. Unlike money market funds, the Funds invest in longer-term securities
that fluctuate in value and do so in a manner inversely correlated with changing
interest rates. A Fund's net asset value will tend to rise when interest rates
fall. Conversely, a Fund's net asset value will tend to fall as interest rates
rise. Normally, fluctuations in interest rates have a greater effect on the
prices of longer-term bonds. The value of the securities held in a Fund will
vary from day to day and investors should consider the volatility of a Fund's
net asset value as well as its yield before making a decision to invest.

-24-

<PAGE>

(SAI-DGG&I/PART B)

Statistical and performance information and various indices compiled
and maintained by organizations such as the following, may also be used in
preparing exhibits comparing certain industry trends to comparable activity and
performance of the Funds and in illustrating general financial planning
principles. Any indices used are not managed for any investment goal.

CDA Technologies, Inc. is a performance evaluation service that
maintains a statistical database of performance, as reported by a
diverse universe of independently-managed mutual funds.

Ibbotson Associates, Inc. is a consulting firm that provides a variety
of historical data including total return, capital appreciation and
income on the stock market as well as other investment asset classes,
and inflation. With their permission, this information will be used
primarily for comparative purposes and to illustrate general financial
planning principles.

Interactive Data Corporation is a statistical access service that
maintains a database of various international industry indicators, such
as historical and current price/earning information, individual equity
and fixed-income price and return information.

Compustat Industrial Databases, a service of Standard & Poor's, may
also be used in preparing performance and historical stock and bond
market exhibits. This firm maintains fundamental databases that provide
financial, statistical and market information covering more than 7,000
industrial and non-industrial companies.

Russell Indexes is an investment analysis service that provides both
current and historical stock performance information, focusing on the
business fundamentals of those firms issuing the security.

Morgan Stanley Capital International is a statistical and research firm
that maintains a statistical database of international securities. This
firm also compiles and maintains a number of unmanaged indices of
international securities. These indices are designed to measure the
performance of the stock markets of the USA, Europe, Canada, Mexico,
Australia and the Far East, and that of international industry groups.

FT-Actuaries World Indices are jointly compiled by The Financial Times,
Ltd.; Goldman, Sachs & Co.; and Wood Mackenzie & Co., Ltd. in
conjunction with the Institute of Actuaries and the Faculty of
Actuaries. Indices maintained by this group primarily focus on
compiling statistical information on international financial markets
and industry sectors, stock and bond issues and certain fundamental
information about the companies issuing the securities. Statistical
information on international currencies is also maintained.

-25-

<PAGE>

(SAI-DGG&I/PART B)

Salomon Brothers is a statistical research firm that maintains
databases of international markets and bond markets (corporate and
government-issued securities). This information, as well as unmanaged
indices compiled and maintained by Salomon, will be used in preparing
comparative illustrations. In addition, the performance of multiple
indices compiled and maintained by these firms may be combined to
create a blended performance result for comparative performances.
Generally, the indices selected will be representative of the types of
securities in which the Funds may invest and the assumptions that were
used in calculating the blended performance will be described.

Comparative information on the Consumer Price Index may also be
included. The Consumer Price Index, as prepared by the U.S. Bureau of Labor
Statistics, is the most commonly used measure of inflation. It indicates the
cost fluctuations of a representative group of consumer goods. It does not
represent a return from an investment.

Current interest rate and yield information on government debt
obligations of various durations, as reported weekly by the Federal Reserve
(Bulletin H.15), may also be used. As well, current industry rate and yield
information on all industry available fixed-income securities, as reported
weekly by The Bond Buyer, may also be used in preparing comparative
illustrations.

Each Fund may also promote its Classes' yield and/or total return
performance and use comparative performance information computed by and
available from certain industry and general market research and publications,
such as Lipper Analytical Services, Inc., IBC/Donoghue's Money Market Report and
Morningstar, Inc.

The following tables are examples, for purposes of illustration only,
of cumulative total return performance for Class A Shares, Class B Shares, Class
C Shares and the Institutional Class of each Fund through November 30, 1996. The
calculations assume the reinvestment of any realized securities profits,
distributions and income dividends paid during the indicated periods. The
performance also reflects maximum sales charges, if any, but not any income
taxes payable by shareholders on the reinvested distributions included in the
calculations. The performance of Class A Shares may also be shown without
reflecting the impact of any front-end sales charge. The performance of Class B
Shares and Class C Shares is calculated both with the applicable CDSC included
and excluded. The net asset value of a class fluctuates so shares, when
redeemed, may be worth more or less than the original investment, and a class'
results should not be considered as representative of future performance.

-26-

<PAGE>

(SAI-DGG&I/PART B)

Cumulative Total Return(1)

International International
Equity Fund Equity Fund
A Class Institutional
(at Offer)(2) Class(3)
3 months ended
11/30/96 5.18% 10.51%

6 months ended
11/30/96 5.79%(4) 11.26%

9 months ended
11/30/96 10.00% 15.79%

1 year ended
11/30/96 18.29% 24.68%

3 years ended
11/30/96 39.80% 48.03%

5 years ended
11/30/96 71.82% 82.57%

Period 10/31/91(5)
through 11/30/96 65.77% 76.18%

(1) Beginning December 1, 1995, the Manager had elected voluntarily to
waive that portion, if any, of the annual management fees payable by
International Equity Fund and to pay the Fund's expenses to the
extent necessary to ensure that the Total Operating Expenses of
International Equity Fund A Class and International Equity Fund
Institutional Class do not exceed 1.85% and 1.55%, respectively
(exclusive of taxes, interest, brokerage commissions and
extraordinary expenses, but inclusive of applicable 12b-1 expenses),
through November 30, 1997. From June 1, 1994 through November 30,
1994, a waiver and reimbursement commitment was in place to ensure
that Total Operating Expenses of International Equity Fund A Class
and 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.
Prior to June 1, 1994, a waiver and reimbursement commitment was in
place to ensure that expenses did not exceed 0.95% (exclusive of
taxes, interest, brokerage commissions, extraordinary expenses, and
12b expenses) for International Equity Fund A Class and International
Equity Fund Institutional Class. In the absence of such waiver,
performance would have been affected negatively.

(4) For the six months ended November 30, 1996, cumulative total return
for International Equity Fund A Class at net asset value was 11.07%.

(5) Date of initial public offering of International Equity Fund A Class.

-27-

<PAGE>

(SAI-DGG&I/PART B)

Cumulative Total Return (1)

International Equity International Equity
Fund B Class Fund B Class
(Including (Excluding
Deferred Sales Deferred Sales
Charge) Charge)
3 months ended
11/30/96 6.30% 10.30%

6 months ended
11/30/96 6.72% 10.72%

9 months ended
11/30/96 10.98% 14.98%

1 year ended
11/30/96 19.38% 23.38%

Period 9/6/94(2)
through 11/30/96 19.99% 22.99%

(2) Date of initial public offering of International Equity Fund B Class.

Cumulative Total Return (1)

International Equity International Equity
Fund C Class Fund C Class
(Including Deferred (Excluding Deferred
Sales Charge) Sales Charge)
3 months ended
11/30/96 9.23% 10.23%

6 months ended
11/30/96 9.73% 10.73%

9 months ended
11/30/96 13.92% 14.92%

1 year ended
11/30/96(2) 22.39% 23.39%

(2) Date of initial public offering of International Equity Fund C Class
was November 29, 1995.

-28-

<PAGE>
(SAI-DGG&I/PART B)

Cumulative Total Return(1)
<TABLE>
<CAPTION>
Global Bond Global Bond
Fund B Class Fund B Class
Global Bond (Including (Excluding
Global Bond Fund Deferred Deferred
Fund A Class Institutional Sales Sales
(at Offer) Class Charge) Charge)
<S> <C> <C> <C> <C>
3 months ended
11/30/96 1.25% 6.50% 2.15% 6.15%

6 months ended
11/30/96 6.07%(2) 11.52% 6.98% 10.98%

9 months ended
11/30/96 6.72% 12.35% 7.52% 11.52%

1 year ended
11/30/96 8.92% 14.68% 9.51% 13.51%

Period 12/27/94(3)
through 11/30/96 29.38% 36.71% 30.20% 34.20%
</TABLE>

(1) The Manager had elected to voluntarily waive that portion, if any, of
the annual management fees payable by Global Bond Fund and to pay the
Fund's expenses to the extent necessary to ensure that the Total
Operating Expenses of the Class A Shares, Class B Shares and
Institutional Class shares, respectively, do not exceed 1.25%, 1.95% and
0.95% (in each case, exclusive of taxes, interest, brokerage commissions
and extraordinary expenses, but inclusive of applicable 12b-1 expenses)
through November 30, 1997. In the absence of such waiver, performance
would have been affected negatively.

(2) For the six months ended November 30, 1996, cumulative total return for
Global Bond Fund A Class at net asset value was 11.35%.

(3) Date of initial public offering of Global Bond Fund A Class, Global Bond
Fund Institutional Class and Global Bond Fund B Class.

Cumulative Total Return(1)
<TABLE>
<CAPTION>
<S> <C> <C>
Global Bond Global Bond
Fund C Class Fund C Class
(Including Deferred (Excluding Deferred
Sales Charge) Sales Charge)
3 months ended
11/30/96 5.18% 6.18%

6 months ended
11/30/96 9.93% 10.93%

9 months ended
11/30/96 10.47% 11.47%

1 year ended
11/30/96(2) 12.51% 13.51%
</TABLE>

(1) The Manager had elected voluntarily to waive that portion, if any, of
the annual management fees payable by Global Bond Fund and to pay the
Fund's expenses to the extent necessary to ensure that the Total
Operating Expenses of Global Bond Fund C Class do not exceed 1.95%
(exclusive of taxes, interest, brokerage commissions and
extraordinary expenses, but inclusive of applicable 12b-1 expenses)
through November 30, 1997. In the absence of such waiver,
performance would have been affected negatively.

(2) Date of initial public offering of Global Bond Fund C Class was
November 29, 1995.

-29-

<PAGE>
(SAI-DGG&I/PART B)
Cumulative Total Return(1)
<TABLE>
<CAPTION>
Global Assets Global Assets
Fund B Class Fund B Class
Global Assets (Including (Excluding
Global Assets Fund Deferred Deferred
Fund A Class Institutional Sales Sales
(at Offer)(2) Class Charge) Charge)
<S> <C> <C> <C> <C>
3 months ended
11/30/96 3.20% 8.35% 4.21% 8.21%

6 months ended
11/30/96 4.76%(3) 10.03% 5.62% 9.62%

9 months ended
11/30/96 7.12% 12.60% 7.81% 11.81%

1 year ended
11/30/96 12.59% 18.38% 13.32% 17.32%

Period 12/27/96(4)
through 11/30/96 36.72% 44.28% 37.64% 41.64%
</TABLE>

(1) The Manager had elected to voluntarily waive that portion, if any, of
the annual management fees payable by Global Assets Fund and to pay the
Fund's expenses to the extent necessary to ensure that the Total
Operating Expenses of the Class A Shares, Class B Shares and
Institutional Class shares, respectively, do not exceed 1.25%, 1.95% and
0.95% (in each case, exclusive of taxes, interest, brokerage commissions
and extraordinary expenses, but inclusive of applicable 12b-1 expenses)
through November 30, 1997. In the absence of such waiver, performance
would have been affected negatively.

(2) Prior to November 29, 1995, the maximum front-end sales charge was
5.75%. Effective November 29, 1995, the maximum front-end sales charge
was reduced to 4.75%. The above performance numbers are calculated using
4.75% as the applicable sales charge, and are more favorable than they
would have been had they been calculated using the former front-end
sales charge.

(3) For the six months ended November 30, 1996, cumulative total return for
Global Assets Fund A Class at net asset value was 9.97%.

(4) Date of initial public offering of Global Assets Fund A Class, Global
Assets Fund Institutional Class and Global Assets Fund B Class.

Cumulative Total Return(1)
<TABLE>
<CAPTION>
Global Assets Global Assets
Fund C Class Fund C Class
(Including Deferred (Excluding Deferred
Sales Charge) Sales Charge)
<S> <C> <C>
3 months ended
11/30/96 7.15% 8.15%

6 months ended
11/30/96 8.48% 9.48%

9 months ended
11/30/96 10.77% 11.77%

1 year ended
11/30/96(2) 16.33% 17.33%
</TABLE>

(1) The Manager had elected voluntarily to waive that portion, if any, of
the annual management fees payable by Global Assets Fund and to pay
the Fund's expenses to the extent necessary to ensure that the Total
Operating Expenses of Global Assets Fund C Class do not exceed 1.95%
(exclusive of taxes, interest, brokerage commissions and
extraordinary expenses, but inclusive of applicable 12b-1 expenses)
through November 30, 1997. In the absence of such waiver,
performance would have been affected negatively.

(2) Date of initial public offering of Global Assets Fund C Class was
November 29, 1995.

-30-

<PAGE>

(SAI-DGG&I/PART B)
Cumulative Total Return(1)
<TABLE>
<CAPTION>

Emerging Markets Emerging Markets Emerging Market
Emerging Markets Fund Institutional Fund B Class Fund B Class
Fund A Class Class (Including Deferred (Excluding Deferred
(at Offer) (at Offer) Sales Charge) Sales Charge)
<S> <C> <C> <C> <C>
3 months ended
11/30/96 (5.41%) (0.60%) (4.86%) (0.90%)

Period 6/10/96(2)
through 11/30/96 (5.05%) (0.10%) (4.58%) (0.60%)
</TABLE>

(1) The Manager had elected to voluntarily waive that portion, if any, of
the annual management fees payable by Emerging Markets Fund and to
pay the Fund's expenses to ensure that the Total Operating Expenses
of the Class A Shares, Class B Shares and Institutional Class shares,
respectively, do not exceed 2.00%, 2.70% and 1.70%, respectively, (in
each case, exclusive of taxes, interest, brokerage commissions and
extraordinary expenses, but inclusive of applicable 12b-1 expenses)
through November 30, 1997. In the absence of such waiver,
performance would have been affected negatively.

(2) Date of initial public offering of Emerging Markets Fund A Class,
Emerging Markets Fund Institutional Class and Emerging Markets Fund B
Class; total return for this short of a time period may not be
representative of longer term results.

Cumulative Total Return(1)

Emerging Markets Emerging Markets
Fund C Class Fund C Class
(Including Deferred (Excluding Deferred
Sales Charge) Sales Charge)
3 months ended
11/30/96 (1.89%) (0.90%)

Period 6/10/96(2)
through 11/30/96 (1.59%) (0.60%)

(1) The Manager had elected to voluntarily waive that portion, if any, of
the annual management fees payable by Emerging Markets Fund and to
pay the Fund's expenses to ensure that the Total Operating Expenses
of the Class C Shares of this Fund do not exceed 2.70% (exclusive of
taxes, interest, brokerage commissions and extraordinary expenses,
but inclusive of applicable 12b-1 expenses) through November 30,
1997. In the absence of such waiver, performance would have been
affected negatively.

(2) Date of initial public offering of Emerging Markets Fund C Class;
total return for this short of a time period may not be
representative of longer term results.

Because every investor's goals and risk threshold are different, the
Distributor, as distributor for Global Funds, Inc. and other mutual funds in the
Delaware Group, will provide general information about investment alternatives
and scenarios that will allow investors to assess their personal goals. This
information will include general material about investing as well as materials
reinforcing various industry-accepted principles of prudent and responsible
personal financial planning. One typical way of addressing these issues is to
compare an individual's goals and the length of time the individual has to
attain these goals to his or her risk threshold. In addition, the Distributor
may also provide information that discusses the overriding investment philosophy
of Delaware Management Company, Inc. ("Delaware" or the "Sub-Adviser"), Delaware
Investment Advisers, a division of Delaware, and the Manager, an affiliate of
Delaware, and how that philosophy impacts Fund investment disciplines and
strategies employed in seeking each Fund's objectives. The Distributor may also

-31-

<PAGE>

(SAI-DGG&I/PART B)

from time to time cite general or specific information about the institutional
clients of Delaware, including the number of such clients serviced by Delaware.

Dollar-Cost Averaging
For many people, deciding when to invest can be a difficult decision.
Security prices tend to move up and down over various market cycles and logic
says to invest when prices are low. However, even experts can't always pick the
highs and the lows. By using a strategy known as dollar-cost averaging, you
schedule your investments ahead of time. If you invest a set amount on a regular
basis, that money will always buy more shares when the price is low and fewer
when the price is high. You can choose to invest at any regular interval--for
example, monthly or quarterly--as long as you stick to your regular schedule.
Dollar-cost averaging looks simple and it is, but there are important things to
remember.

Dollar-cost averaging works best over longer time periods, and it
doesn't guarantee a profit or protect against losses in declining markets. If
you need to sell your investment when prices are low, you may not realize a
profit no matter what investment strategy you utilize. That's why dollar-cost
averaging can make sense for long-term goals. Since the potential success of a
dollar-cost averaging program depends on continuous investing, even through
periods of fluctuating prices, you should consider your dollar-cost averaging
program a long-term commitment and invest an amount you can afford and probably
won't need to withdraw. You also should consider your financial ability to
continue to purchase shares during periods of low fund share prices. Delaware
Group offers three services -- Automatic Investing Program, Direct Deposit
Program and the Wealth Builder Option -- that can help to keep your regular
investment program on track. See Investing by Electronic Fund Transfer - Direct
Deposit Purchase Plan and Automatic Investing Plan under Investment Plans and
Wealth Builder Option under Investment Plans for a complete description of these
services, including restrictions or limitations.

The example below illustrates how dollar-cost averaging can work. In a
fluctuating market, the average cost per share over a period of time will be
lower than the average price per share for the same time period.

Number
Investment Price Per of Shares
Amount Share Purchased

Month 1 $100 $10.00 10
Month 2 $100 $12.50 8
Month 3 $100 $ 5.00 20
Month 4 $100 $10.00 10
------------------------------------------------------------
$400 $37.50 48

Total Amount Invested: $400
Total Number of Shares Purchased: 48
Average Price Per Share: $9.38 ($37.50/4)
Average Cost Per Share: $8.33 ($400/48 shares)

This example is for illustration purposes only. It is not intended to
represent the actual performance of any Fund.

-32-

<PAGE>

(SAI-DGG&I/PART B)

THE POWER OF COMPOUNDING
When you opt to reinvest your current income for additional shares in a
Fund, your investment is given yet another opportunity to grow. It's called the
Power of Compounding and the following charts illustrate just how powerful it
can be.

Compounded Returns
Results for various assumed fixed rates of return on a $10,000 investment
compounded monthly for 10 years:

6% 8% 10% 12%
Rate of Rate of Rate of Rate of
Return Return Return Return
------ ------ ------ ------

1 Year $10,617 $10,830 $11,047 $11,268
2 Years $11,272 $11,729 $12,204 $12,697
3 Years $11,967 $12,702 $13,482 $14,308
4 Years $12,705 $13,757 $14,894 $16,122
5 Years $13,488 $14,898 $16,453 $18,167
6 Years $14,320 $16,135 $18,176 $20,471
7 Years $15,203 $17,474 $20,079 $23,067
8 Years $16,141 $18,924 $22,182 $25,993
9 Years $17,137 $20,495 $24,504 $29,290
10 Years $18,194 $22,196 $27,070 $33,004

Results for various assumed fixed rates of return on a $10,000 investment
compounded quarterly for 10 years:

6% 8% 10% 12%
Rate of Rate of Rate of Rate of
Return Return Return Return
------ ------ ------ ------

1 Year $10,614 $10,824 $11,038 $11,255
2 Years $11,265 $11,717 $12,184 $12,668
3 Years $11,956 $12,682 $13,449 $14,258
4 Years $12,690 $13,728 $14,845 $16,047
5 Years $13,468 $14,859 $16,386 $18,061
6 Years $14,295 $16,084 $18,087 $20,328
7 Years $15,172 $17,410 $19,965 $22,879
8 Years $16,103 $18,845 $22,038 $25,751
9 Years $17,091 $20,399 $24,326 $28,983
10 Years $18,140 $22,080 $26,851 $32,620

The figures are calculated assuming a fixed constant investment return
and assume no fluctuation in the value of principal. These figures, which do not
reflect payment of applicable taxes or sales charges, are not intended to be a
projection of investment results and do not reflect the actual performance
results of any of the Classes.

-33-

<PAGE>

(SAI-DGG&I/PART B)

TRADING PRACTICES AND BROKERAGE

The Manager selects brokers or dealers to execute transactions on
behalf of each Fund for the purchase or sale of portfolio securities on the
basis of its judgment of their professional capability to provide the service.
The Sub-Adviser performs this function with respect to transactions on behalf of
Global Assets Fund and Global Equity Fund for the purchase and sale of U.S.
securities. The primary consideration is to have brokers or dealers execute
transactions at best price and execution. Best price and execution refers to
many factors, including the price paid or received for a security, the
commission charged, the promptness and reliability of execution, the
confidentiality and placement accorded the order and other factors affecting the
overall benefit obtained by the account on the transaction. A number of trades
are made on a net basis where a Fund either buys securities directly from the
dealer or sells them to the dealer. In these instances, there is no direct
commission charged but there is a spread (the difference between the buy and
sell price) which is the equivalent of a commission. When a commission is paid,
the Fund involved pays reasonably competitive brokerage commission rates based
upon the professional knowledge of the Manager or the Sub-Adviser as to rates
paid and charged for similar transactions throughout the securities industry. In
some instances, the Fund may pay a minimal share transaction cost when the
transaction presents no difficulty.

During the past three fiscal years, the aggregate dollar amounts of
brokerage commissions paid by International Equity Fund, Global Assets Fund and
Emerging Markets Fund were as follows:

November 30,
1996 1995 1994
-------- ------- --------
International Equity Fund $142,445 $85,113 $137,192
Global Assets Fund(1) 21,197 5,155 N/A
Emerging Markets Fund(2) 28,013 N/A N/A

(1) Date of initial offering of Global Assets Fund was December 27, 1994.
(2) Date of initial public offering of Emerging Markets Fund was June 10,
1996.

The Manager or the Sub-Adviser may allocate out of all commission
business generated by all of the funds and accounts under its management,
brokerage business to brokers or dealers who provide brokerage and research
services. These services include advice, either directly or through publications
or writings, as to the value of securities, the advisability of investing in,
purchasing or selling securities, and the availability of securities or
purchasers or sellers of securities; furnishing of analyses and reports
concerning issuers, securities or industries; providing information on economic
factors and trends; assisting in determining portfolio strategy; providing
computer software and hardware used in security analyses; and providing
portfolio performance evaluation and technical market analyses. Such services
are used by the Manager or the Sub-Adviser in connection with its investment
decision-making process with respect to one or more funds and accounts managed
by it, and may not be used, or used exclusively, with respect to the fund or
account generating the brokerage.

-34-

<PAGE>

(SAI-DGG&I/PART B)

During the fiscal year ended November 30, 1996, portfolio transactions
of the following Funds in the amounts listed below, resulting in brokerage
commissions in the amounts listed below were directed to brokers for brokerage
and research services provided:

Portfolio Brokerage
Transactions Commissions
Amounts Amounts
------------ -----------

International Equity Fund $6,430,845 $15,901
Global Assets Fund $2,777,479 $4,928
Emerging Markets Fund(1) -0- -0-

(1) Date of initial public offering of Emerging Markets Fund was June 10, 1996.

As provided in the Securities Exchange Act of 1934 (the "1934 Act") and
each Fund's Investment Management Agreement, higher commissions are permitted to
be paid to broker/dealers who provide brokerage and research services than to
broker/dealers who do not provide such services if such higher commissions are
deemed reasonable in relation to the value of the brokerage and research
services provided. Although transactions are directed to broker/dealers who
provide such brokerage and research services, the Funds believe that the
commissions paid to such broker/dealers are not, in general, higher than
commissions that would be paid to broker/dealers not providing such services and
that such commissions are reasonable in relation to the value of the brokerage
and research services provided. In some instances, services may be provided to
the Manager or the Sub-Adviser which constitute in some part brokerage and
research services used by the Manager or the Sub-Adviser in connection with its
investment decision-making process and constitute in some part services used by
the Manager or the Sub-Adviser in connection with administrative or other
functions not related to its investment decision-making process. In such cases,
the Manager or the Sub-Adviser will make a good faith allocation of brokerage
and research services and will pay out of its own resources for services used by
the Manager or the Sub-Adviser in connection with administrative or other
functions not related to its investment decision-making process. In addition, so
long as no fund is disadvantaged, portfolio transactions which generate
commissions or their equivalent are allocated to broker/dealers who provide
daily portfolio pricing services to a Fund and to other funds in the Delaware
Group. Subject to best price and execution, commissions allocated to brokers
providing such pricing services may or may not be generated by the funds
receiving the pricing service.

The Manager or the Sub-Adviser may place a combined order for two or
more accounts or funds engaged in the purchase or sale of the same security if,
in its judgment, joint execution is in the best interest of each participant and
will result in best price and execution. Transactions involving commingled
orders are allocated in a manner deemed equitable to each account or fund. When
a combined order is executed in a series of transactions at different prices,
each account participating in the order may be allocated an average price
obtained from the executing broker. It is believed that the ability of the
accounts to participate in volume transactions will generally be beneficial to
the accounts and funds. Although it is recognized that, in some cases, the joint
execution of orders could adversely affect the price or volume of the security
that a particular account or fund may obtain, it is the opinion of the Manager,
the Sub-Adviser and Global Funds, Inc.'s Board of Directors that the advantages
of combined orders outweigh the possible disadvantages of separate transactions.

-35-

<PAGE>

(SAI-DGG&I/PART B)

Consistent with the Rules of Fair Practice of the National Association
of Securities Dealers, Inc. (the "NASD"), and subject to seeking best price and
execution, the Funds may place orders with broker/dealers that have agreed to
defray certain expenses of the funds in the Delaware Group of funds such as
custodian fees, and may, at the request of the Distributor, give consideration
to sales of a Fund's shares as a factor in the selection of brokers and
dealers to execute Fund portfolio transactions.

Portfolio Turnover
A Fund is free to dispose of portfolio securities at any time, subject
to complying with the Code and the 1940 Act, when changes in circumstances or
conditions make such a move desirable in light of its investment objective. A
Fund will not attempt to achieve or be limited to a predetermined rate of
portfolio turnover, such a turnover always being incidental to transactions
undertaken with a view to achieving a Fund's investment objective.

The degree of portfolio activity may affect brokerage costs of a Fund
and taxes payable by a Fund's shareholders. A turnover rate of 100% would occur,
for example, if all the investments in the Fund's portfolio at the beginning of
the year were replaced by the end of the year. In investing for capital
appreciation, a Fund may hold securities for any period of time. Portfolio
turnover will also be increased if a Fund writes a large number of call options
which are subsequently exercised. To the extent a Fund realizes gains on
securities held for less than six months, such gains are taxable to the
shareholder or to the Fund at ordinary income tax rates. The turnover rate also
may be affected by cash requirements from redemptions and repurchases of Fund
shares. Total brokerage costs generally increase with higher portfolio turnover
rates.

Under certain market conditions, a Fund may experience a rate of
portfolio turnover which could exceed 100%. Each Fund's portfolio turnover rate
is calculated by dividing the lesser of purchases or sales of portfolio
securities for the particular fiscal year by the monthly average of the value of
the portfolio securities owned by the Fund during the particular fiscal year,
exclusive of securities whose maturities at the time of acquisition are one year
or less.

During the past two fiscal years, the portfolio turnover rates of the
Funds were as follows:

November 30,
1996 1995
---- ----
International Equity Fund 9% 21%
Global Bond Fund 42% 98%*
Global Assets Fund 34% 57%*
Emerging Markets Fund 36%* N/A

*Annualized

-36-

<PAGE>

(SAI-DGG&I/PART B)

PURCHASING SHARES

The Distributor serves as the national distributor for each Fund's four
classes of shares - Class A Shares, Class B Shares, Class C Shares and the
Institutional Class, and has agreed to use its best efforts to sell shares of
each Fund. See the Prospectuses for additional information on how to invest.
Shares of each Fund are offered on a continuous basis and may be purchased
through authorized investment dealers or directly by contacting Global Funds,
Inc. or the Distributor.

The minimum initial investment generally is $1,000 for Class A Shares,
Class B Shares and Class C Shares. Subsequent purchases of such Classes
generally must be at least $100. The initial and subsequent investment minimums
for Class A Shares will be waived for purchases by officers, directors and
employees of any Delaware Group fund, the Manager or the Sub-Adviser or any of
their affiliates if the purchases are made pursuant to a payroll deduction
program. Shares purchased pursuant to the Uniform Gifts to Minors Act or Uniform
Transfers to Minors Act and shares purchased in connection with an Automatic
Investing Plan are subject to a minimum initial purchase of $250 and a minimum
subsequent purchase of $25. Accounts opened under the Delaware Group Asset
Planner service are subject to a minimum initial investment of $2,000 per Asset
Planner Strategy selected. There are no minimum purchase requirements for the
Institutional Classes, but certain eligibility requirements must be satisfied.

Each purchase of Class B Shares is subject to a maximum purchase
limitation of $250,000. For Class C Shares, each purchase must be in an amount
that is less than $1,000,000. See Investment Plans for purchase limitations
applicable to retirement plans. Global Funds, Inc. will reject any purchase
order for more than $250,000 of Class B Shares and $1,000,000 or more of Class C
Shares. An investor may exceed these limitations by making cumulative purchases
over a period of time. In doing so, an investor should keep in mind, however,
that reduced front-end sales charges apply to investments of $100,000 or more in
Class A Shares, and that Class A Shares are subject to lower annual 12b-1 Plan
expenses than Class B Shares and Class C Shares and generally are not subject to
a CDSC.

Selling dealers are responsible for transmitting orders promptly.
Global Funds, Inc. reserves the right to reject any order for the purchase of
its shares of a Fund if in the opinion of management such rejection is in such
Fund's best interest.

The NASD has adopted Rules of Fair Practice, as amended, relating to
investment company sales charges. Global Funds, Inc. and the Distributor intend
to operate in compliance with these rules.

Class A Shares are purchased at the offering price which reflects a
maximum front-end sales charge of 4.75%; however, lower front-end sales charges
apply for larger purchases. See the table below. Class A Shares are also subject
to annual 12b-1 Plan expenses.

Class B Shares are purchased at net asset value and are subject to a
CDSC of: (i) 4% if shares are redeemed within two years of purchase; (ii) 3% if
shares are redeemed during the third or fourth year following purchase; (iii) 2%
if shares are redeemed during the fifth year following purchase; and (iv) 1% if
shares are redeemed during the sixth year following purchase. Class B Shares are
also subject to annual 12b-1 Plan expenses which are higher than those to which
Class A Shares are subject and are assessed against Class B Shares for
approximately eight years after purchase. See Automatic Conversion of Class B
Shares under Classes of Shares in the Fund Classes' Prospectus.

-37-

<PAGE>

(SAI-DGG&I/PART B)

Class C Shares are purchased at net asset value and are subject to a
CDSC of 1% if shares are redeemed within 12 months following purchase. Class C
Shares are also subject to annual 12b-1 Plan expenses for the life of the
investment which are equal to those to which Class B Shares are subject.

Institutional Class shares are purchased at the net asset value per
share without the imposition of a front-end or contingent deferred sales charge
or 12b-1 Plan expenses. See Determining Offering Price and Net Asset Value and
Plans Under Rule 12b-1 for the Fund Classes in this Part B.

Class A Shares, Class B Shares, Class C Shares and Institutional Class
shares represent a proportionate interest in a Fund's assets and will receive a
proportionate interest in that Fund's income, before application, as to Class A,
Class B and Class C Shares, of any expenses under that Fund's 12b-1 Plans.

Certificates representing shares purchased are not ordinarily issued
unless, in the case of Class A Shares or Institutional Class shares, a
shareholder submits a specific request. Certificates are not issued in the case
of Class B Shares or Class C Shares or in the case of any retirement plan
account including self-directed IRAs. However, purchases not involving the
issuance of certificates are confirmed to the investor and credited to the
shareholder's account on the books maintained by Delaware Service Company, Inc.
(the "Transfer Agent"). The investor will have the same rights of ownership with
respect to such shares as if certificates had been issued. An investor that is
permitted to obtain a certificate may receive a certificate representing full
share denominations purchased by sending a letter signed by each owner of the
account to the Transfer Agent requesting the certificate. No charge is assessed
by Global Funds, Inc. for any certificate issued. A shareholder may be subject
to fees for replacement of a lost or stolen certificate under certain
conditions, including the cost of obtaining a bond covering the lost or stolen
certificate. Please contact the Funds for further information. Investors who
hold certificates representing any of their shares may only redeem those shares
by written request. The investor's certificate(s) must accompany such request.

Alternative Purchase Arrangements
The alternative purchase arrangements of Class A, Class B and Class C
Shares permit investors to choose the method of purchasing shares that is most
suitable for their needs given the amount of their purchase, the length of time
they expect to hold their shares and other relevant circumstances. Investors
should determine whether, given their particular circumstances, it is more
advantageous to purchase Class A Shares and incur a front-end sales charge and
annual 12b-1 Plan expenses of up to a maximum of 0.30% of the average daily net
assets of Class A Shares, or to purchase either Class B or Class C Shares and
have the entire initial purchase amount invested in the Fund with the investment
thereafter subject to a CDSC and annual 12b-1 Plan expenses. Class B Shares are
subject to a CDSC if the shares are redeemed within six years of purchase, and
Class C Shares are subject to a CDSC if the shares are redeemed within 12 months
of purchase. Class B and Class C Shares are each subject to annual 12b-1 Plan
expenses of up to a maximum of 1% (0.25% of which are service fees to be paid to
the Distributor, dealers or others for providing personal service and/or
maintaining shareholder accounts) of average daily net assets of the respective
Class. Class B Shares will automatically convert to Class A Shares at the end of
approximately eight years after purchase and, thereafter, be subject to annual
12b-1 Plan expenses of up to a maximum of 0.30% of average daily net assets of
such shares. Unlike Class B Shares, Class C Shares do not convert to another
Class.

Class A Shares - International Equity Fund, International Small Cap Fund,
Global Bond Fund, Global Assets Fund, Emerging Markets Fund and Global Equity
Fund
Purchases of $100,000 or more of Class A Shares at the offering price
carry reduced front-end sales charges as shown in the accompanying table, and
may include a series of purchases over a 13-month period under a Letter of
Intention signed by the purchaser. See Special Purchase Features - Class A
Shares, below, for

-38-

<PAGE>

(SAI-DGG&I/PART B)

more information on ways in which investors can avail themselves of reduced
front-end sales charges and other purchase features.

International Equity Fund A Class
International Small Cap Fund A Class
Global Bond Fund A Class
Global Assets Fund A Class
Emerging Markets Fund A Class
Global Equity Fund A Class

<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Front End Dealer's
Sales Commission***
Charge as as % of
a % of Offering Price
Offering Front End Sales Charge as a % of
Amount of Purchase Price Amount Invested**
- -----------------------------------------------------------------------------------------------------------------------------------
Inter- Inter- Global Global Emerging Global
national national Bond Assets Markets Equity
Equity Small Fund Fund Fund Fund
Fund Cap Fund
<S> <C> <C> <C> <C> <C> <C> <C>
Less than $100,000 4.75% 4.99% 4.94% 4.97% 4.96% 5.02% 4.94% 4.00%

$100,000 but $250,000 3.75% 3.90% 3.88% 3.92% 3.91% 3.92% 3.88% 3.00%

$250,000 but under $500,000 2.50% 2.60% 2.59% 2.53% 2.56% 2.61% 2.59% 2.00%

$500,000 but under $1,000,000* 2.00% 2.05% 2.00% 2.01% 2.03% 2.01% 2.00% 1.60%

- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

* There is no front-end sales charge on purchases of $1 million or more
of Class A Shares but, under certain limited circumstances, a 1%
contingent deferred sales charge may apply upon redemption of such
shares. The contingent deferred sales charge ("Limited CDSC") that may
be applicable arises only in the case of certain shares that were
purchased at net asset value and triggered the payment of a dealer's
commission.

** Based on the net asset values per share of the respective Fund's Class
A Shares as of the end of Global Funds, Inc.'s most recent fiscal year,
except that International Small Cap Fund A Class and Global Equity
Fund A Class are based on an initial net asset value of $8.50 per
share.

*** Financial institutions or their affiliated brokers may receive an
agency transaction fee in the percentages set forth above.
- --------------------------------------------------------------------------------

A Fund must be notified when a sale takes place which would qualify for
the reduced front-end sales charge on the basis of previous or current
purchases. The reduced front-end sales charge will be granted upon
confirmation of the shareholder's holdings by such Fund. Such reduced
front-end sales charges are not retroactive.

From time to time, upon written notice to all of its dealers, the
Distributor may hold special promotions for specified periods during
which the Distributor may reallow to dealers up to the full amount of
the front-end sales charges shown above. Dealers who receive 90% or
more of the sales charge may be deemed to be underwriters under the
1933 Act.
- --------------------------------------------------------------------------------

-39-

<PAGE>
(SAI-DGG&I/PART B)

Certain dealers who enter into an agreement to provide extra training
and information on Delaware Group products and services and who increase sales
of Delaware Group funds may receive an additional commission of up to 0.15% of
the offering price in connection with sales of Class A Shares. Such dealers must
meet certain requirements in terms of organization and distribution capabilities
and their ability to increase sales. The Distributor should be contacted for
further information on these requirements as well as the basis and circumstances
upon which the additional commission will be paid. Participating dealers may be
deemed to have additional responsibilities under the securities laws.

Dealer's Commission
For initial purchases of Class A Shares of $1,000,000 or more, a
dealer's commission may be paid by the Distributor to financial advisers through
whom such purchases are effected in accordance with the following schedule:

Dealer's Commission
(as a percentage of
Amount of Purchase amount purchased)
------------------ -------------------
Up to $2 million 1.00%
Next $1 million up to $3 million 0.75
Next $2 million up to $5 million 0.50
Amount over $5 million 0.25

In determining a financial adviser's eligibility for the dealer's
commission, purchases of Class A Shares of other Delaware Group funds as to
which a Limited CDSC applies (see Contingent Deferred Sales Charge for Certain
Redemptions of Class A Shares Purchased at Net Asset Value under Redemption and
Exchange in the Fund Classes' Prospectus) may be aggregated with those of
Class A Shares of a Fund. Financial advisers also may be eligible for a dealer's
commission in connection with certain purchases made under a Letter of Intention
or pursuant to an investor's Right of Accumulation. Financial advisers should
contact the Distributor concerning the applicability and calculation of the
dealer's commission in the case of combined purchases.

Contingent Deferred Sales Charge - Class B Shares and Class C Shares
Class B Shares and Class C Shares are purchased without a front-end
sales charge. Class B Shares redeemed within six years of purchase may be
subject to a CDSC at the rates set forth below, and Class C Shares redeemed
within 12 months of purchase may be subject to a CDSC of 1%. CDSCs are charged
as a percentage of the dollar amount subject to the CDSC. The charge will be
assessed on an amount equal to the lesser of the net asset value at the time of
purchase of the shares being redeemed or the net asset value of those shares at
the time of redemption. No CDSC will be imposed on increases in net asset value
above the initial purchase price, nor will a CDSC be assessed on redemptions of
shares acquired through reinvestment of dividends or capital gains
distributions. See Waiver of Contingent Deferred Sales Charge--Class B and Class
C Shares under Redemption and Exchange in the Prospectus for the Fund Classes
for a list of the instances in which the CDSC is waived.

-40-

<PAGE>

(SAI-DGG&I/PART B)

The following table sets forth the rates of the CDSC for Class B Shares
of each Fund:

Contingent Deferred
Sales Charge
(as a Percentage
of Dollar Amount
Year After Purchase Made Subject to Charge)
------------------------ --------------------
0-2 4%
3-4 3%
5 2%
6 1%
7 and thereafter None

During the seventh year after purchase and, thereafter, until converted
automatically into Class A Shares, Class B Shares will still be subject to the
annual 12b-1 Plan expenses of up to 1% of average daily net assets of those
shares. At the end of approximately eight years after purchase, the investor's
Class B Shares will be automatically converted into Class A Shares of the same
Fund. See Automatic Conversion of Class B Shares under Classes of Shares in the
Fund Classes' Prospectus. Such conversion will constitute a tax-free exchange
for federal income tax purposes. See Taxes in the Prospectus for the Fund
Classes.

Plans Under Rule 12b-1 for the Fund Classes
Pursuant to Rule 12b-1 under the 1940 Act, Global Funds, Inc. has
adopted a separate plan for each of the Class A Shares, the Class B Shares and
the Class C Shares of a Fund (the "Plans"). Each Plan permits the relevant Fund
to pay for certain distribution, promotional and related expenses involved in
the marketing of only the class of shares to which the Plan applies. The Plans
do not apply to Institutional Classes of shares. Such shares are not included
in calculating the Plans' fees, and the Plans are not used to assist in the
distribution and marketing of shares of the Institutional Classes. Shareholders
of the Institutional Classes may not vote on matters affecting the Plans.

The Plans permit a Fund, pursuant to its Distribution Agreement, to pay
out of the assets of the Class A Shares, Class B Shares and Class C Shares
monthly fees to the Distributor for its services and expenses in distributing
and promoting sales of shares of such classes. These expenses include, among
other things, preparing and distributing advertisements, sales literature and
prospectuses and reports used for sales purposes, compensating sales and
marketing personnel, and paying distribution and maintenance fees to securities
brokers and dealers who enter into dealer's agreements with the Distributor. The
Plan expenses relating to Class B and Class C Shares are also used to pay the
Distributor for advancing the commission costs to dealers with respect to the
initial sale of such shares.

In addition, each Fund may make payments out of the assets of Class A
Shares, Class B Shares and Class C Shares directly to other unaffiliated
parties, such as banks, who either aid in the distribution of shares of, or
provide services to, such classes.

The maximum aggregate fee payable by a Fund under its Plans and a
Fund's Distribution Agreement, is on an annual basis up to 0.30% of the Class A
Shares' average daily net assets for the year, and up to 1% (0.25% of which are
service fees to be paid to the Distributor, dealers and others for providing
personal service and/or maintaining shareholder accounts) of Class B Shares' and
Class C Shares' average daily net assets for the year. Global Funds, Inc.'s
Board of Directors may reduce these amounts at any time.

-41-

<PAGE>

(SAI-DGG&I/PART B)

All of the distribution expenses incurred by the Distributor and
others, such as broker/dealers, in excess of the amount paid on behalf of Class
A, Class B and Class C Shares would be borne by such persons without any
reimbursement from such classes. Subject to seeking best price and execution, a
Fund may, from time to time, buy or sell portfolio securities from or to firms
which receive payments under the Plans.

From time to time, the Distributor may pay additional amounts from its
own resources to dealers for aid in distribution or for aid in providing
administrative services to shareholders.

The Plans and the Distribution Agreements, as amended, have all been
approved by the Board of Directors of Global Funds, Inc., including a majority
of the directors who are not "interested persons" (as defined in the 1940 Act)
of Global Funds, Inc. and who have no direct or indirect financial interest in
the Plans, by vote cast in person at a meeting duly called for the purpose of
voting on the Plans and such Agreements. Continuation of the Plans and the
Distribution Agreements, as amended, must be approved annually by the Board of
Directors in the same manner as specified above.

Each year, the directors must determine whether continuation of the
Plans is in the best interest of shareholders of, respectively, Class A Shares,
Class B Shares and Class C Shares of the respective Funds and that there is a
reasonable likelihood of the Plan relating to a Fund Class providing a benefit
to that class. The Plans and the Distribution Agreements, as amended, may be
terminated at any time without penalty by a majority of those directors who are
not "interested persons" or by a majority vote of the outstanding voting
securities of the relevant Fund Class. Any amendment materially increasing the
percentage payable under a Plan must likewise be approved by a majority vote of
the outstanding voting securities of the relevant Fund Class, as well as by a
majority vote of those directors who are not "interested persons." With respect
to each Class A Shares' Plans any material increase in the maximum percentage
payable thereunder must be approved by a majority of the outstanding voting
securities of Class B Shares of the same Fund. Also, any other material
amendment to the Plans must be approved by a majority vote of the directors
including a majority of the noninterested directors of Global Funds, Inc. having
no interest in the Plans. In addition, in order for the Plans to remain
effective, the selection and nomination of directors who are not "interested
persons" of Global Funds, Inc. must be effected by the directors who themselves
are not "interested persons" and who have no direct or indirect financial
interest in the Plans. Persons authorized to make payments under the Plans must
provide written reports at least quarterly to the Board of Directors for its
review.

-42-

<PAGE>

(SAI-DGG&I/PART B)

For the fiscal year ended November 30, 1996, payments from Class A
Shares, Class B Shares and Class C Shares of International Equity Fund amounted
to $228,319, $64,523 and $5,409, respectively. Such amounts were used for the
following purposes:

<TABLE>
<CAPTION>
International International International
Equity Fund Equity Fund Equity Fund
A Class B Class C Class
----------- ----------- -----------
<S> <C> <C> <C>
Advertising --- --- ---
Annual/Semi-Annual Reports $5,565 --- ---
Broker Trails $180,704 $15,882 ---
Broker Sales Charges --- $26,538 $5,073
Dealer Service Expenses --- --- ---
Interest on Broker Sales Charges --- $18,627 $336
Commissions to Wholesalers $1,316 $2,887 ---
Promotional-Broker Meetings $560 $589 ---
Promotional-Other $34,629 --- ---
Prospectus Printing $5,545 --- ---
Telephone --- --- ---
Wholesaler Expenses --- --- ---
Other --- --- ---
</TABLE>

For the fiscal year ended November 30, 1996, payments from Class A
Shares, Class B Shares and Class C Shares of Global Bond Fund amounted to
$5,484, $3,838 and $620, respectively. Such amounts were used for the following
purposes:
<TABLE>
<CAPTION>

Global Bond Fund Global Bond Fund Global Bond Fund
A Class B Class C Class
---------------- ---------------- ----------------
<S> <C> <C> <C>
Advertising --- --- ---
Annual/Semi-Annual Reports $181 --- ---
Broker Trails $4,160 $277 ---
Broker Sales Charges --- $1,589 $464
Dealer Service Expenses --- $39 $3
Interest on Broker Sales Charges --- $1,096 $40
Commissions to Wholesalers --- $608 $107
Promotional-Broker Meetings --- $40 $2
Promotional-Other --- --- ---
Prospectus Printing $1,035 $7 ---
Telephone $108 $182 ---
Wholesaler Expenses --- --- $4
Other --- --- ---
</TABLE>

-43-

<PAGE>

(SAI-DGG&I/PART B)

For the fiscal year ended November 30, 1996, payments from Class A
Shares, Class B Shares and Class C Shares of Global Assets Fund amounted to
$23,324, $26,341 and $4,989, respectively. Such amounts were used for the
following purposes:
<TABLE>
<CAPTION>

Global Global Global
Assets Fund Assets Fund Assets Fund
A Class B Class C Class
----------- ----------- -----------
<S> <C> <C> <C>
Advertising --- --- ---
Annual/Semi-Annual Reports $473 --- ---
Broker Trails $19,128 $6,663 ---
Broker Sales Charges --- $11,249 $4,695
Dealer Service Expenses --- --- ---
Interest on Broker Sales Charges --- $7,189 $294
Commissions to Wholesalers --- $974 ---
Promotional-Broker Meetings $1 $266 ---
Promotional-Other $3,282 --- ---
Prospectus Printing $440 --- ---
Telephone --- --- ---
Wholesaler Expenses --- --- ---
Other --- --- ---
</TABLE>

For the period June 10, 1996 (date of initial public offering) through
November 30, 1996, payments from Class A Shares, Class B Shares and Class C
Shares of Emerging Markets Fund amounted to $3,206, $652 and $831, respectively.
Such amounts were used for the following purposes:
<TABLE>
<CAPTION>

Emerging Emerging Emerging
Markets Fund Markets Fund Markets Fund
A Class B Class C Class
------------ ------------ ------------
<S> <C> <C> <C>
Advertising --- --- ---
Annual/Semi-Annual Reports --- --- ---
Broker Trails $2,508 $163 ---
Broker Sales Charges --- $242 $418
Dealer Service Expenses --- --- $1
Interest on Broker Sales Charges --- $215 $21
Commissions to Wholesalers $70 $24 $354
Promotional-Broker Meetings --- $8 $8
Promotional-Other $628 --- ---
Prospectus Printing --- --- ---
Telephone --- --- $1
Wholesaler Expenses --- --- $28
Other --- --- ---
</TABLE>

The staff of the SEC has proposed amendments to Rule 12b-1 and other
related regulations that could impact Rule 12b-1 Distribution Plans. Global
Funds, Inc. intends to amend the Plans, if necessary, to comply with any new
rules or regulations the SEC may adopt with respect to Rule 12b-1.

-44-

<PAGE>

(SAI-DGG&I/PART B)

Other Payments to Dealers - Class A, Class B and Class C Shares
From time to time, at the discretion of the Distributor, all registered
broker/dealers whose aggregate sales of Fund Classes exceed certain limits as
set by the Distributor, may receive from the Distributor an additional payment
of up to 0.25% of the dollar amount of such sales. The Distributor may also
provide additional promotional incentives or payments to dealers that sell
shares of the Delaware Group of funds. In some instances, these incentives or
payments may be offered only to certain dealers who maintain, have sold or may
sell certain amounts of shares. The Distributor may also pay a portion of the
expense of preapproved dealer advertisements promoting the sale of Delaware
Group fund shares.

Special Purchase Features - Class A Shares

Buying Class A Shares at Net Asset Value
Class A Shares may be purchased without a front-end sales charge under
the Dividend Reinvestment Plan and, under certain circumstances, the Exchange
Privilege and the 12-Month Reinvestment Privilege.

Current and former officers, directors and employees of Global Funds,
Inc., any other fund in the Delaware Group, the Sub-Adviser, including the
Manager, the Sub-Adviser's affiliates, or any of the Sub- Adviser'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 of the Funds and any
such Class of shares of any of the other funds in the Delaware Group, including
any fund that may be created, at the net asset value per share. Family members
of such persons at their direction, and any employee benefit plan established by
any of the foregoing funds, corporations, counsel or broker/dealers may also
purchase Class A Shares at net asset value. Class A Shares may also be purchased
at net asset value by current and former officers, directors and employees (and
members of their families) of the Dougherty Financial Group LLC.

Purchases of Class A Shares may also be made by clients of registered
representatives of an authorized investment dealer at net asset value within 12
months after the registered representative changes employment, if the purchase
is funded by proceeds from an investment where a front-end sales charge,
contingent deferred sales charge or other sales charge has been assessed.
Purchases of Class A Shares may also be made at net asset value by bank
employees who provide services in connection with agreements between the bank
and unaffiliated brokers or dealers concerning sales of shares of Delaware Group
funds. In addition, purchases of Class A Shares may be made by financial
institutions investing for the account of their trust customers when they are
not eligible to purchase shares of a Fund's Institutional Class. Officers,
directors and key employees of institutional clients of the Manager, the
Sub-Adviser or any of their affiliates may purchase Class A Shares at net asset
value. Moreover, purchases may be effected at net asset value for the benefit of
the clients of brokers, dealers and registered investment advisers affiliated
with a broker or dealer, if such broker, dealer or investment adviser has
entered into an agreement with the Distributor providing specifically for the
purchase of Class A Shares in connection with special investment products, such
as wrap accounts or similar fee based programs. Such purchasers are required to
sign a letter stating that the purchase is for investment only and that the
securities may not be resold except to the issuer. Such purchasers may also be
required to sign or deliver such other documents as Global Funds, Inc. may
reasonably require to establish eligibility for purchase at net asset value.

Purchases of Class A Shares at net asset value may also be made by the
following: financial institutions investing for the account of their customers
when they are not eligible to purchase shares of the institutional class of the
fund; and any group retirement plan (excluding defined benefit pension plans),
or such plans of the same employer, for which plan participant records are
maintained on the Delaware Investment & Retirement Services, Inc. ("DIRSI")
proprietary record keeping system that (i)

-45-
<PAGE>

(SAI-DGG&I/PART B)

has in excess of $500,000 of plan assets invested in Class A Shares of Delaware
Group funds and in any stable value product available through the Delaware
Group, or (ii) is sponsored by an employer that has at any point after May 1,
1997 more than 100 employees while such plan has held Class A Shares of a
Delaware Group fund and such employer has properly represented to DIRSI in
writing that it has the requisite number of employees and has received written
confirmation back from DIRSI.

Purchases of Class A Shares of the International Equity Fund at net
asset value may also be made by bank sponsored retirement plans that are no
longer eligible to purchase Institutional Class Shares as a result of a change
in the distribution arrangements.

The Funds must be notified in advance that the trade qualifies for
purchase at net asset value.

Letter of Intention
The reduced front-end sales charges described above with respect to
Class A Shares are also applicable to the aggregate amount of purchases made
within a 13-month period pursuant to a written Letter of Intention provided by
the Distributor and signed by the purchaser, and not legally binding on the
signer or Global Funds, Inc., which provides for the holding in escrow by the
Transfer Agent of 5% of the total amount of Class A Shares intended to be
purchased until such purchase is completed within the 13-month period. A Letter
of Intention may be dated to include shares purchased up to 90 days prior to the
date the Letter is signed. The 13-month period begins on the date of the
earliest purchase. If the intended investment is not completed, except as noted
below, the purchaser will be asked to pay an amount equal to the difference
between the front-end sales charge on Class A Shares purchased at the reduced
rate and the front-end sales charge otherwise applicable to the total shares
purchased. If such payment is not made within 20 days following the expiration
of the 13-month period, the Transfer Agent will surrender an appropriate number
of the escrowed shares for redemption in order to realize the difference. Such
purchasers may include the value (at offering price at the level designated in
their Letter of Intention) of all their shares of a Fund and of any class of any
of the other mutual funds in the Delaware Group (except shares of any Delaware
Group fund which do not carry a front-end sales charge, CDSC or Limited CDSC,
other than shares of Delaware Group Premium Fund, Inc. beneficially owned in
connection with the ownership of variable insurance products, unless they were
acquired through an exchange from a Delaware Group fund which carried a
front-end sales charge, CDSC or Limited CDSC) previously purchased and still
held as of the date of their Letter of Intention toward the completion of such
Letter. For purposes of satisfying an investor's obligation under a Letter of
Intention, Class B Shares and Class C Shares of a Fund and the corresponding
classes of shares of other Delaware Group funds which offer such shares may be
aggregated with Class A Shares of the Fund and the corresponding class of shares
of the other Delaware Group funds.

Employers offering a Delaware Group retirement plan may also complete a
Letter of Intention to obtain a reduced front-end sales charge on investments of
Class A Shares made by the plan. The aggregate investment level of the Letter of
Intention will be determined and accepted by the Transfer Agent at the point of
plan establishment. The level and any reduction in front-end sales charge will
be based on actual plan participation

-46-

<PAGE>

(SAI-DGG&I/PART B)

and the projected investments in Delaware Group funds that are offered with a
front-end sales charge, CDSC or Limited CDSC for a 13-month period. The Transfer
Agent reserves the right to adjust the signed Letter of Intention based on this
acceptance criteria. The 13-month period will begin on the date this Letter of
Intention is accepted by the Transfer Agent. If actual investments exceed the
anticipated level and equal an amount that would qualify the plan for further
discounts, any front-end sales charges will be automatically adjusted. In the
event this Letter of Intention is not fulfilled within the 13-month period, the
plan level will be adjusted (without completing another Letter of Intention) and
the employer will be billed for the difference in front-end sales charges due,
based on the plan's assets under management at that time. Employers may also
include the value (at offering price at the level designated in their Letter of
Intention) of all their shares intended for purchase that are offered with a
front-end sales charge, CDSC or Limited CDSC of any class. Class B Shares and
Class C Shares of a Fund and other Delaware Group funds which offer
corresponding classes of shares may also be aggregated for this purpose.

Combined Purchases Privilege
In determining the availability of the reduced front-end sales charge
previously set forth with respect to Class A Shares, purchasers may combine the
total amount of any combination of Class A Shares, Class B Shares and/or Class C
Shares of the Funds, as well as shares of any other class of any of the other
Delaware Group funds (except shares of any Delaware Group fund which do not
carry a front-end sales charge, CDSC or Limited CDSC, other than shares of
Delaware Group Premium Fund, Inc. beneficially owned in connection with the
ownership of variable insurance products, unless they were acquired through an
exchange from a Delaware Group fund which carried a front-end sales charge, CDSC
or Limited CDSC).

The privilege also extends to all purchases made at one time by an
individual; or an individual, his or her spouse and their children under 21; or
a trustee or other fiduciary of trust estates or fiduciary accounts for the
benefit of such family members (including certain employee benefit programs).

Right of Accumulation
In determining the availability of the reduced front-end sales charge
with respect to Class A Shares, purchasers may also combine any subsequent
purchases of Class A Shares, Class B Shares and Class C Shares of a Fund as well
as shares of any other class of any of the other Delaware Group funds which
offer such classes (except shares of any Delaware Group fund which do not carry
a front-end sales charge, CDSC or Limited CDSC, other than shares of Delaware
Group Premium Fund, Inc. beneficially owned in connection with the ownership of
variable insurance products, unless they were acquired through an exchange from
shares from a Delaware Group fund which carried a front-end sales charge, CDSC
or Limited CDSC). If, for example, any such purchaser has previously purchased
and still holds Class A Shares and/or shares of any other of the classes
described in the previous sentence with a value of $40,000 and subsequently
purchases $60,000 at offering price of additional shares of Class A Shares, the
charge applicable to the $60,000 purchase would currently be 3.75%. For the
purpose of this calculation, the shares presently held shall be valued at the
public offering price that would have been in effect were the shares purchased
simultaneously with the current purchase. Investors should refer to the table of
sales charges for Class A Shares to determine the applicability of the Right of
Accumulation to their particular circumstances.

12-Month Reinvestment Privilege
Holders of Class A Shares of a Fund (and of the Institutional Classes
holding shares which were acquired through an exchange from one of the other
mutual funds in the Delaware Group offered with a front-end sales charge) who
redeem such shares have one year from the date of redemption to reinvest all or
part of their redemption proceeds in Class A Shares of that Fund or in Class A
Shares of any of the other funds in the Delaware Group, subject to applicable
eligibility and minimum purchase requirements, in states where shares of such
other funds may be sold, at net asset value without the payment of a front-end
sales charge. This privilege

-47-
<PAGE>

(SAI-DGG&I/PART B)

does not extend to Class A Shares where the redemption of the shares triggered
the payment of a Limited CDSC. Persons investing redemption proceeds from direct
investments in mutual funds in the Delaware Group offered without a front-end
sales charge will be required to pay the applicable sales charge when purchasing
Class A Shares. The reinvestment privilege does not extend to a redemption of
either Class B Shares or Class C Shares.

Any such reinvestment cannot exceed the redemption proceeds (plus any
amount necessary to purchase a full share). The reinvestment will be made at the
net asset value next determined after receipt of remittance. A redemption and
reinvestment could have income tax consequences. It is recommended that a tax
adviser be consulted with respect to such transactions. Any reinvestment
directed to a fund in which the investor does not then have an account will be
treated like all other initial purchases of a Fund's shares. Consequently, an
investor should obtain and read carefully the prospectus for the fund in which
the investment is intended to be made before investing or sending money. The
prospectus contains more complete information about the fund, including charges
and expenses.

Investors should consult their financial advisers or the Transfer
Agent, which also serves as the Funds' shareholder servicing agent, about the
applicability of the Limited CDSC (see Contingent Deferred Sales Charge for
Certain Redemptions of Class A Shares Purchased at Net Asset Value under
Redemption and Exchange in the Fund Classes' Prospectus) in connection with the
features described above.

Group Investment Plans
Group Investment Plans that are not eligible to purchase shares of the
Institutional Classes may also benefit from the reduced front-end sales charges
for investments in Class A Shares set forth in the table on page 00, based on
total plan assets. If a company has more than one plan investing in the Delaware
Group of funds, then the total amount invested in all plans would be used in
determining the applicable front-end sales charge reduction upon each purchase,
both initial and subsequent, upon notification to the Fund in which the
investment is being made at the time of each such purchase. Employees
participating in such Group Investment Plans may also combine the investments
made in their plan account when determining the applicable front-end sales
charge on purchases to non-retirement Delaware Group investment accounts if they
so notify the Fund in which the investment is being made in connection with each
purchase. For other retirement plans and special services, see Retirement Plans
for the Fund Classes under Investment Plans.

The Institutional Classes
Each Fund's Institutional Class is available for purchase only by: (a)
retirement plans introduced by persons not associated with brokers or dealers
that are primarily engaged in the retail securities business and rollover
individual retirement accounts from such plans; (b) tax-exempt employee benefit
plans of the Manager, the Sub-Adviser or their affiliates and securities dealer
firms with a selling agreement with the Distributor; (c) institutional advisory
accounts of the Manager, the Sub-Adviser or their affiliates and those having
client relationships with Delaware Investment Advisers, a division of the
Sub-Adviser, or its affiliates and their corporate sponsors, as well as
subsidiaries and related employee benefit plans and rollover individual
retirement accounts from such institutional advisory accounts; (d) a bank, trust
company and similar financial institution investing for its own account or for
the account of its trust customers for whom such financial institution is
exercising investment discretion in purchasing shares of the Class, except where
the investment is part of a program that requires payment to the financial
institution of a Rule 12b-1 Plan fee; and (e) registered investment advisers
investing on behalf of clients that consist solely of institutions and high
net-worth individuals having at least $1,000,000 entrusted to the adviser for
investment purposes, but only if the adviser is not affiliated or associated
with a broker or dealer and derives compensation for its services exclusively
from its clients for such advisory services.

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(SAI-DGG&I/PART B)

Shares of the Institutional Classes are available for purchase at net
asset value, without the imposition of a front-end or contingent deferred sales
charge and are not subject to Rule 12b-1 expenses.

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(SAI-DGG&I/PART B)

INVESTMENT PLANS

Reinvestment Plan/Open Account
With the exception of Global Equity Fund, unless otherwise designated
by shareholders in writing, dividends from net investment income and
distributions from realized securities profits, if any, will be automatically
reinvested in additional shares of the respective Fund Class in which an
investor has an account (based on the net asset value in effect on the
reinvestment date) and will be credited to the shareholder's account on that
date. All dividends and distributions of each Class of Global Equity Fund and
the Institutional Classes of the other Funds are reinvested in the accounts of
the holders of such shares (based on the net asset value in effect on the
reinvestment date). A confirmation of each dividend payment from net investment
income and of distributions from realized securities profits, if any, will be
mailed to shareholders in the first quarter of the fiscal year.

Under the Reinvestment Plan/Open Account, shareholders may purchase and
add full and fractional shares to their plan accounts at any time either through
their investment dealers or by sending a check or money order to the specific
Fund and Class in which the shares are being purchased. Such purchases, which
must meet the minimum subsequent purchase requirements set forth in the
Prospectuses and this Part B, are made, for Class A Shares at the public
offering price, and for Class B Shares, Class C Shares and Institutional Class
shares at the net asset value, at the end of the day of receipt. A reinvestment
plan may be terminated at any time. This plan does not assure a profit nor
protect against depreciation in a declining market.

Reinvestment of Dividends in Other Delaware Group Funds
Subject to applicable eligibility and minimum initial purchase
requirements and the limitations set forth below, holders of Class A, Class B
and Class C Shares may automatically reinvest dividends and/or distributions in
any of the mutual funds in the Delaware Group, including the Funds, in states
where their shares may be sold. Such investments will be at net asset value at
the close of business on the reinvestment date without any front-end sales
charge or service fee. The shareholder must notify the Transfer Agent in writing
and must have established an account in the fund into which the dividends and/or
distributions are to be invested. Any reinvestment directed to a fund in which
the investor does not then have an account will be treated like all other
initial purchases of a fund's shares. Consequently, an investor should obtain
and read carefully the prospectus for the fund in which the investment is
intended to be made before investing or sending money. The prospectus contains
more complete information about the fund, including charges and expenses. See
also Additional Methods of Adding to Your Investment - Dividend Reinvestment
Plan under How to Buy Shares in the Prospectus for the Fund Classes.

Subject to the following limitations, dividends and/or distributions
from other funds in the Delaware Group may be invested in shares of the Funds,
provided an account has been established. Dividends from Class A Shares may not
be directed to Class B Shares or Class C Shares. Dividends from Class B Shares
may only be directed to other Class B Shares and dividends from Class C Shares
may only be directed to other Class C Shares. See Appendix B--Classes Offered in
the Fund Classes' Prospectus for the funds in the Delaware Group that are
eligible for investment by holders of Fund shares.

This option is not available to participants in the following plans:
SAR/SEP, SEP/IRA, Profit Sharing and Money Purchase Pension Plans, 401(k)
Defined Contribution Plans, 403(b)(7) Deferred Compensation Plans or 457
Deferred Compensation Plans.

Investing by Electronic Fund Transfer
Direct Deposit Purchase Plan--Investors may arrange for any Fund to
accept for investment in Class A, Class B or Class C Shares, through an agent
bank, preauthorized government or private recurring payments.

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(SAI-DGG&I/PART B)

This method of investment assures the timely credit to the shareholder's account
of payments such as social security, veterans' pension or compensation benefits,
federal salaries, Railroad Retirement benefits, private payroll checks,
dividends, and disability or pension fund benefits. It also eliminates lost,
stolen and delayed checks.

Automatic Investing Plan--Shareholders of Class A, Class B and Class C
Shares may make automatic investments by authorizing, in advance, monthly
payments directly from their checking account for deposit into their Fund
account. This type of investment will be handled in either of the following
ways. (1) If the shareholder's bank is a member of the National Automated
Clearing House Association ("NACHA"), the amount of the investment will be
electronically deducted from his or her account by Electronic Fund Transfer
("EFT"). The shareholder's checking account will reflect a debit each month at a
specified date although no check is required to initiate the transaction. (2) If
the shareholder's bank is not a member of NACHA, deductions will be made by
preauthorized checks, known as Depository Transfer Checks. Should the
shareholder's bank become a member of NACHA in the future, his or her
investments would be handled electronically through EFT.

* * *

Initial investments under the Direct Deposit Purchase Plan and the
Automatic Investing Plan must be for $250 or more and subsequent investments
under such plans must be for $25 or more. An investor wishing to take advantage
of either service must complete an authorization form. Either service can be
discontinued by the shareholder at any time without penalty by giving written
notice.

Payments to a Fund from the federal government or its agencies on
behalf of a shareholder may be credited to the shareholder's account after such
payments should have been terminated by reason of death or otherwise. Any such
payments are subject to reclamation by the federal government or its agencies.
Similarly, under certain circumstances, investments from private sources may be
subject to reclamation by the transmitting bank. In the event of a reclamation,
a Fund may liquidate sufficient shares from a shareholder's account to reimburse
the government or the private source. In the event there are insufficient shares
in the shareholder's account, the shareholder is expected to reimburse the Fund.

Direct Deposit Purchases by Mail
Shareholders may authorize a third party, such as a bank or employer,
to make investments directly to their Fund accounts. A Fund will accept these
investments, such as bank-by-phone, annuity payments and payroll allotments, by
mail directly from the third party. Investors should contact their employers or
financial institutions who in turn should contact Global Funds, Inc. for proper
instructions.

Wealth Builder Option
Shareholders can use the Wealth Builder Option to invest in the Fund
Classes through regular liquidations of shares in their accounts in other mutual
funds in the Delaware Group. Shareholders of the Fund Classes may elect to
invest in one or more of the other mutual funds in the Delaware Group through
the Wealth Builder Option. See Wealth Builder Option and Redemption and Exchange
in the Prospectus for the Fund Classes.

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(SAI-DGG&I/PART B)

Under this automatic exchange program, shareholders can authorize
regular monthly investments (minimum of $100 per fund) to be liquidated from
their account and invested automatically into other mutual funds in the Delaware
Group, subject to the conditions and limitations set forth in the Fund Classes'
Prospectus. The investment will be made on the 20th day of each month (or, if
the fund selected is not open that day, the next business day) at the public
offering price or net asset value, as applicable, of the fund selected on the
date of investment. No investment will be made for any month if the value of the
shareholder's account is less than the amount specified for investment.

Periodic investment through the Wealth Builder Option does not insure
profits or protect against losses in a declining market. The price of the fund
into which investments are made could fluctuate. Since this program involves
continuous investment regardless of such fluctuating value, investors selecting
this option should consider their financial ability to continue to participate
in the program through periods of low fund share prices. This program involves
automatic exchanges between two or more fund accounts and is treated as a
purchase of shares of the fund into which investments are made through the
program. See Exchange Privilege for a brief summary of the tax consequences of
exchanges. Shareholders can terminate their participation at any time by giving
written notice to their Fund.

Retirement Plans for the Fund Classes
An investment in a Fund may be suitable for tax-deferred retirement
plans. Among the retirement plans noted below, Class B Shares are available for
investment only by Individual Retirement Accounts, Simplified Employee Pension
Plans, 457 Deferred Compensation Plans and 403(b)(7) Deferred Compensation
Plans. The CDSC may be waived on certain redemptions of Class B Shares and Class
C Shares. See Waiver of Contingent Deferred Sales Charge - Class B and Class C
Shares under Redemption and Exchange in the Prospectus for the Fund Classes for
a list of the instances in which the CDSC is waived.

Purchases of Class B Shares are subject to a maximum purchase
limitation of $250,000 for retirement plans. Purchases of Class C Shares must be
in an amount that is less than $1,000,000 for such plans. The maximum purchase
limitations apply only to the initial purchase of shares by the retirement plan.

Minimum investment limitations generally applicable to other investors
do not apply to retirement plans other than Individual Retirement Accounts, for
which there is a minimum initial purchase of $250 and a minimum subsequent
purchase of $25, regardless of which Class is selected. Retirement plans may be
subject to plan establishment fees, annual maintenance fees and/or other
administrative or trustee fees. Fees are based upon the number of participants
in the plan as well as the services selected. Additional information about fees
is included in retirement plan materials. Fees are quoted upon request. Annual
maintenance fees may be shared by Delaware Management Trust Company, the
Transfer Agent, other affiliates of the Manager and others that provide services
to such plans.

Certain shareholder investment services available to non-retirement
plan shareholders may not be available to retirement plan shareholders. Certain
retirement plans may qualify to purchase shares of the Institutional Classes.
See The Institutional Classes above. For additional information on any of the
plans and Delaware's retirement services, call the Shareholder Service Center
telephone number.

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(SAI-DGG&I/PART B)

IT IS ADVISABLE FOR AN INVESTOR CONSIDERING ANY ONE OF THE RETIREMENT
PLANS DESCRIBED BELOW TO CONSULT WITH AN ATTORNEY, ACCOUNTANT OR A QUALIFIED
RETIREMENT PLAN CONSULTANT. FOR FURTHER DETAILS, INCLUDING APPLICATIONS FOR ANY
OF THESE PLANS, CONTACT YOUR INVESTMENT DEALER OR THE DISTRIBUTOR.

Taxable distributions from the retirement plans described below may be
subject to withholding.

Please contact your investment dealer or the Distributor for the
special application forms required for the plans described below.

Prototype Profit Sharing or Money Purchase Pension Plans
Prototype Plans are available for self-employed individuals,
partnerships and corporations. These plans can be maintained as Section 401(k),
profit sharing or money purchase pension plans. Contributions may be invested
only in Class A and Class C Shares.

Individual Retirement Account ("IRA")
A document is available for an individual who wants to establish an IRA
and make contributions which may be tax-deductible, even if the individual is
already participating in an employer-sponsored retirement plan. Even if
contributions are not deductible for tax purposes, as indicated below, earnings
will be tax-deferred. In addition, an individual may make contributions on
behalf of a spouse who has no compensation for the year or, for years prior to
1997, elects to be treated as having no compensation for the year. Investments
in each of the Fund Classes are permissible.

An individual can contribute up to $2,000 to his or her IRA each year.
Contributions may or may not be deductible depending upon the taxpayers adjusted
gross income and whether the taxpayer or his or her spouse is an active
participant in an employer-sponsored retirement plan. Even if a taxpayer (or his
or her spouse) is an active participant in an employer-sponsored retirement
plan, the full $2,000 deduction is still available if the taxpayer's adjusted
gross income is below $25,000 ($40,000 for taxpayers filing joint returns). A
partial deduction is allowed for married couples with incomes between $40,000
and $50,000, and for single individuals with incomes between $25,000 and
$35,000. No deductions are available for contributions to IRAs by taxpayers
whose adjusted gross income before IRA deductions exceeds $50,000 ($35,000 for
singles) and who are active participants in an employer-sponsored retirement
plan. Taxpayers who are not allowed deductions on IRA contributions still can
make nondeductible IRA contributions of as much as $2,000 for each working
spouse ($2,250 for one-income couples for years prior to 1997), and defer taxes
on interest or other earnings from the IRAs. Special rules apply for determining
the deductibility of contributions made by married individuals filing separate
returns.

Effective for tax years beginning after 1996, one-income couples can
contribute up to $2,000 to each spouse's IRA provided the combined compensation
of both spouses is at least equal to the total contributions for both spouses.
If the working spouse is an active participant in an employer-sponsored
retirement plan and earns over $40,000, the maximum deduction limit is reduced
in the same way that the limit is reduced for contributions to a non-spousal
IRA.

A company or association may establish a Group IRA for employees or
members who want to purchase shares of a Fund. Purchases of $1 million or more
of Class A Shares qualify for purchase at net asset value but may, under certain
circumstances, be subject to a Limited CDSC. See Purchasing Shares for
information on reduced front-end sales charges applicable to Class A Shares.

Investments generally must be held in the IRA until age 59 1/2 in order
to avoid premature distribution penalties, but distributions generally must
commence no later than April 1 of the calendar year following the

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(SAI-DGG&I/PART B)

year in which the participant reaches age 70 1/2. Individuals are entitled to
revoke the account, for any reason and without penalty, by mailing written
notice of revocation to Delaware Management Trust Company within seven days
after the receipt of the IRA Disclosure Statement or within seven days after the
establishment of the IRA, except, if the IRA is established more than seven days
after receipt of the IRA Disclosure Statement, the account may not be revoked.
Distributions from the account (except for the pro-rata portion of any
nondeductible contributions) are fully taxable as ordinary income in the year
received. Excess contributions removed after the tax filing deadline, plus
extensions, for the year in which the excess contributions were made are subject
to a 6% excise tax on the amount of excess. Premature distributions
(distributions made before age 59 1/2, except for death, disability and certain
other limited circumstances) will be subject to a 10% excise tax on the amount
prematurely distributed, in addition to the income tax resulting from the
distribution. See Alternative Purchase Arrangements - Class B Shares and Class C
Shares under Classes of Shares, Contingent Deferred Sales Charge - Class B
Shares and Class C Shares under Classes of Shares, and Waiver of Contingent
Deferred Sales Charge - Class B and Class C Shares under Redemption and Exchange
in the Fund Classes' Prospectus concerning the applicability of a CDSC upon
redemption.

Effective January 1, 1997, the 10% premature distribution penalty will
not apply to distributions from an IRA that are used to pay medical expenses in
excess of 7.5% of adjusted gross income or to pay health insurance premiums by
an individual who has received unemployment compensation for 12 consecutive
weeks.

See Appendix A for additional IRA information.

Salary Reduction Simplified Employee Pension Plan ("SAR/SEP")
Although new SAR/SEP plans may not be established after December 31,
1996, existing plans may be maintained by employers having 25 or fewer
employees . An employer may elect to make additional contributions to such
existing plans.

Prototype 401(k) Defined Contribution Plan
Section 401(k) of the Code permits employers to establish qualified
plans based on salary deferral contributions. Plan documents are available to
enable employers to establish a plan. An employer may also elect to make profit
sharing contributions and/or matching contributions with investments in only
Class A Shares and Class C Shares or certain other funds in the Delaware Group.
Purchases under the plan may be combined for purposes of computing the reduced
front-end sales charge applicable to Class A Shares as set forth in the table on
page 00.

Deferred Compensation Plan for Public Schools and Non-Profit Organizations
("403(b)(7)")
Section 403(b)(7) of the Code permits public school systems and certain
non-profit organizations to use mutual fund shares held in a custodial account
to fund deferred compensation arrangements for their employees. A custodial
account agreement is available for those employers who wish to purchase any of
the Fund Classes in conjunction with such an arrangement. Applicable front-end
sales charges with respect to Class A Shares for such purchases are set forth in
the table on page 00.

Deferred Compensation Plan for State and Local Government Employees ("457")
Section 457 of the Code permits state and local governments, their
agencies and certain other entities to establish a deferred compensation plan
for their employees who wish to participate. This enables employees to

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(SAI-DGG&I/PART B)

defer a portion of their salaries and any federal (and possibly state) taxes
thereon. Such plans may invest in shares of any of the Fund Classes. Although
investors may use their own plan, there is available a Delaware Group 457
Deferred Compensation Plan. Interested investors should contact the Distributor
or their investment dealers to obtain further information. Applicable front-end
sales charges for such purchases of Class A Shares are set forth in the table on
page 00.

SIMPLE IRA
A SIMPLE IRA combines many of the features of an Individual Retirement
Account (IRA) and a 401(k) Plan but is easier to administer than a typical
401(k) Plan. It requires employers to make contributions on behalf of their
employees and also has a salary deferral feature that permits employees to defer
a portion of their salary into the plan on a pre-tax basis.

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(SAI-DGG&I/PART B)

DETERMINING OFFERING PRICE AND NET ASSET VALUE

Orders for purchases of Class A Shares are effected at the offering
price next calculated by the Fund in which shares are being purchased after
receipt of the order by the Fund or its agent. Orders for purchases of Class B
Shares, Class C Shares and Institutional Class shares are effected at the net
asset value per share next calculated by the Fund in which shares are being
purchased after receipt of the order by the Fund or its agent. Selling dealers
are responsible for transmitting orders promptly.

The offering price for Class A Shares consists of the net asset value
per share plus any applicable front-end sales charges. Offering price and net
asset value are computed as of the close of regular trading on the New York
Stock Exchange (ordinarily, 4 p.m., Eastern time) on days when the Exchange is
open. The New York Stock Exchange is scheduled to be open Monday through Friday
throughout the year except for New Year's Day, Presidents' Day, Good Friday,
Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas. When the
New York Stock Exchange is closed, the Funds will generally be closed, pricing
calculations will not be made and purchase and redemption orders will not be
processed.

An example showing how to calculate the net asset value per share and,
in the case of Class A Shares, the offering price per share, is included in the
Funds' financial statements which are incorporated by reference into this Part
B.

Each Fund's net asset value per share is computed by adding the value
of all the securities and other assets in the Fund's portfolio, deducting any
liabilities of the Fund, and dividing by the number of Fund shares outstanding.
Expenses and fees are accrued daily. In determining a Fund's total net assets,
portfolio securities primarily listed or traded on a national or foreign
securities exchange, except for bonds, are valued at the last sale price on that
exchange. Exchange traded options are valued at the last reported sale price or,
if no sales are reported, at the mean between bid and asked prices. Non-exchange
traded options are valued at fair value using a mathematical model. Futures
contracts are valued at their daily quoted settlement price. For valuation
purposes, foreign securities initially expressed in foreign currency values will
be converted into U.S. dollar values at the mean between the bid and offered
quotations of such currencies against U.S. dollars as last quoted by any
recognized dealer or major bank which is a regular participant in the
institutional foreign exchange markets. Securities not traded on a particular
day, over-the-counter securities, and government and agency securities are
valued at the mean value between bid and asked prices. Money market instruments
having a maturity of less than 60 days are valued at amortized cost. Debt
securities (other than short-term obligations) are valued on the basis of
valuations provided by a pricing service when such prices are believed to
reflect the fair value of such securities. Use of a pricing service has been
approved by the Board of Directors. Prices provided by a pricing service take
into account appropriate factors such as institutional trading in similar groups
of securities, yield, quality, coupon rate, maturity, type of issue, trading
characteristics and other market data. Subject to the foregoing, securities for
which market quotations are not readily available and other assets are valued at
fair value as determined in good faith and in a method approved by the Board of
Directors.

Each class of a Fund will bear, pro-rata, all of the common expenses of
that Fund. The net asset values of all outstanding shares of each class of a
Fund will be computed on a pro-rata basis for each outstanding share based on
the proportionate participation in that Fund represented by the value of shares
of that class. All income earned and expenses incurred by a Fund will be borne
on a pro-rata basis by each outstanding share of a class, based on each class'
percentage in that Fund represented by the value of shares of such classes,
except that the Institutional Classes will not incur any of the expenses under
Global Funds, Inc.'s 12b-1 Plans and Class A, Class B and Class C Shares alone
will bear the 12b-1 Plan fees payable under their respective Plans. Due to the
specific distribution expenses and other costs that will be allocable to each
class, the net asset value of each

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(SAI-DGG&I/PART B)

class of a Fund will vary. During the period the current waivers of 12b-1 Plan
expenses by the Distributor in connection with the distribution of Class A,
Class B and Class C Shares of Global Equity Fund remain applicable no such
variance shall arise.

REDEMPTION AND REPURCHASE

Any shareholder may require a Fund to redeem shares by sending a
written request, signed by the record owner or owners exactly as the shares are
registered, to the Fund, at 1818 Market Street, Philadelphia, PA 19103. In
addition, certain expedited redemption methods described below are available
when stock certificates have not been issued. Certificates are issued for Class
A Shares and Institutional Class shares only if a shareholder specifically
requests them. Certificates are not issued for Class B Shares or Class C Shares.
If stock certificates have been issued for shares being redeemed, they must
accompany the written request. For redemptions of $50,000 or less paid to the
shareholder at the address of record, the request must be signed by all owners
of the shares or the investment dealer of record, but a signature guarantee is
not required. When the redemption is for more than $50,000, or if payment is
made to someone else or to another address, signatures of all record owners are
required and a signature guarantee may be required. Each signature guarantee
must be supplied by an eligible guarantor institution. Each Fund reserves the
right to reject a signature guarantee supplied by an eligible institution based
on its creditworthiness. The Funds may request further documentation from
corporations, retirement plans, executors, administrators, trustees or
guardians.

In addition to redemption of Fund shares, the Distributor, acting as
agent of the Funds, offers to repurchase Fund shares from broker/dealers acting
on behalf of shareholders. The redemption or repurchase price, which may be more
or less than the shareholder's cost, is the net asset value per share next
determined after receipt of the request in good order by the respective Fund or
its agent, subject to any applicable CDSC or Limited CDSC. This is computed and
effective at the time the offering price and net asset value are determined. See
Determining Offering Price and Net Asset Value. The Funds and the Distributor
end their business days at 5 p.m., Eastern time. This offer is discretionary and
may be completely withdrawn without further notice by the Distributor.

Orders for the repurchase of Fund shares which are submitted to the
Distributor prior to the close of its business day will be executed at the net
asset value per share computed that day (subject to the applicable CDSC or
Limited CDSC), if the repurchase order was received by the broker/dealer from
the shareholder prior to the time the offering price and net asset value are
determined on such day. The selling dealer has the responsibility of
transmitting orders to the Distributor promptly. Such repurchase is then settled
as an ordinary transaction with the broker/dealer (who may make a charge to the
shareholder for this service) delivering the shares repurchased.

Certain redemptions of Class A Shares purchased at net asset value may
result in the imposition of a Limited CDSC. See Contingent Deferred Sales Charge
for Certain Redemptions of Class A Shares Purchased at Net Asset Value under
Redemption and Exchange in the Prospectus for the Fund Classes. Class B Shares
are subject to a CDSC of: (i) 4% if shares are redeemed within two years of
purchase; (ii) 3% if shares are redeemed during the third or fourth year
following purchase; (iii) 2% if shares are redeemed during the fifth year
following purchase; and (iv) 1% if shares are redeemed during the sixth year
following purchase. Class C Shares are subject to a CDSC of 1% if shares are
redeemed within 12 months following purchase. See Contingent Deferred Sales
Charge - Class B Shares and Class C Shares under Classes of Shares in the
Prospectus for the Fund Classes. Except for the applicable CDSC or Limited CDSC
and, with respect to the expedited payment by wire described below for which, in
the case of the Fund Classes, there is currently a $7.50 bank wiring cost,
neither the Funds nor the Distributor charges a fee for redemptions or
repurchases, but such fees could be charged at any time in the future.

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(SAI-DGG&I/PART B)

Payment for shares redeemed will ordinarily be mailed the next business
day, but in no case later than seven days, after receipt of a redemption request
in good order; provided, however, that each commitment to mail or wire
redemption proceeds by a certain time, as described below, is modified by the
qualifications described in the next paragraph.

Each Fund will process written or telephone redemption requests to the
extent that the purchase orders for the shares being redeemed have already been
settled. A Fund will honor the redemption requests as to shares for which a
check was tendered as payment, but a Fund will not mail or wire the proceeds
until it is reasonably satisfied that the check has cleared. This potential
delay can be avoided by making investments by wiring Federal Funds.

If a shareholder has been credited with a purchase by a check which is
subsequently returned unpaid for insufficient funds or for any other reason, the
Fund involved will automatically redeem from the shareholder's account the
shares purchased by the check plus any dividends earned thereon. Shareholders
may be responsible for any losses to a Fund or to the Distributor.

In case of a suspension of the determination of the net asset value
because the New York Stock Exchange is closed for other than weekends or
holidays, or trading thereon is restricted or an emergency exists as a result of
which disposal by a Fund of securities owned by it is not reasonably practical,
or it is not reasonably practical for a Fund fairly to value its assets, or in
the event that the Securities and Exchange Commission has provided for such
suspension for the protection of shareholders, a Fund may postpone payment or
suspend the right of redemption or repurchase. In such case, the shareholder may
withdraw the request for redemption or leave it standing as a request for
redemption at the net asset value next determined after the suspension has been
terminated.

Payment for shares redeemed or repurchased may be made either in cash
or kind, or partly in cash and partly in kind. Any portfolio securities paid or
distributed in kind would be valued as described in Determining Offering Price
and Net Asset Value. Subsequent sale by an investor receiving a distribution in
kind could result in the payment of brokerage commissions. However, Global
Funds, Inc. has elected to be governed by Rule 18f-1 under the 1940 Act pursuant
to which each Fund is obligated to redeem shares solely in cash up to the lesser
of $250,000 or 1% of the net asset value of such Fund during any 90-day period
for any one shareholder.

The value of a Fund's investments is subject to changing market prices.
Thus, a shareholder reselling shares to a Fund may sustain either a gain or
loss, depending upon the price paid and the price received for such shares.

Small Accounts
Before a Fund involuntarily redeems shares from an account that, under
the circumstances listed in the relevant Prospectus, has remained below the
minimum amounts required by Global Funds, Inc.'s Prospectuses and sends the
proceeds to the shareholder, the shareholder will be notified in writing that
the value of the shares in the account is less than the minimum required and
will be allowed 60 days from the date of notice to make an additional investment
to meet the required minimum. See The Conditions of Your Purchase under How to
Buy Shares in Global Funds, Inc.'s Prospectuses. Any redemption in an inactive
account established with a minimum investment may trigger mandatory redemption.
No CDSC or Limited CDSC will apply to redemptions described in this paragraph.

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(SAI-DGG&I/PART B)

With respect to International Equity Fund and Global Assets Fund only,
effective November 29, 1995, the minimum initial investment in Class A Shares
was increased from $250 to $1,000. Class A accounts that were established prior
to November 29, 1995 and maintain a balance in excess of $250 will not presently
be subject to the $9 quarterly service fee that may be assessed on accounts with
balances below the stated minimum nor be subject to involuntary redemption.

* * *
Each Fund has made available certain redemption privileges, as
described below. The Funds reserve the right to suspend or terminate these
expedited payment procedures upon 60 days' written notice to shareholders.

Expedited Telephone Redemptions
Shareholders of the Fund Classes or their investment dealers of record
wishing to redeem any amount of shares of $50,000 or less for which certificates
have not been issued may call the Shareholder Service Center at 800-523-1918 or,
in the case of shareholders of the Institutional Classes, their Client Services
Representative at 800-828-5052 prior to the time the offering price and net
asset value are determined, as noted above, and have the proceeds mailed to them
at the address of record. Checks payable to the shareholder(s) of record will
normally be mailed the next business day, but no later than seven days, after
the receipt of the redemption request. This option is only available to
individual, joint and individual fiduciary-type accounts.

In addition, redemption proceeds of $1,000 or more can be transferred
to your predesignated bank account by wire or by check by calling the phone
numbers listed above. An authorization form must have been completed by the
shareholder and filed with the relevant Fund before the request is received.
Payment will be made by wire or check to the bank account designated on the
authorization form as follows:

1. Payment by Wire: Request that Federal Funds be wired to the bank
account designated on the authorization form. Redemption proceeds will normally
be wired on the next business day following receipt of the redemption request.
There is a $7.50 wiring fee (subject to change) charged by CoreStates Bank, N.A.
which will be deducted from the withdrawal proceeds each time the shareholder
requests a redemption from Class A Shares, Class B Shares and Class C Shares. If
the proceeds are wired to the shareholder's account at a bank which is not a
member of the Federal Reserve System, there could be a delay in the crediting of
the funds to the shareholder's bank account.

2. Payment by Check: Request a check be mailed to the bank account
designated on the authorization form. Redemption proceeds will normally be
mailed the next business day, but no later than seven days, from the date of the
telephone request. This procedure will take longer than the Payment by Wire
option (1 above) because of the extra time necessary for the mailing and
clearing of the check after the bank receives it.

Redemption Requirements: In order to change the name of the bank and
the account number it will be necessary to send a written request to the
relevant Fund and a signature guarantee may be required. Each signature
guarantee must be supplied by an eligible guarantor institution. The Funds
reserve the right to reject a signature guarantee supplied by an eligible
institution based on its creditworthiness.

To reduce the shareholder's risk of attempted fraudulent use of the
telephone redemption procedure, payment will be made only to the bank account
designated on the authorization form.

-59-
<PAGE>

(SAI-DGG&I/PART B)

If expedited payment under these procedures could adversely affect a
Fund, such Fund may take up to seven days to pay the shareholder.

Neither the Funds nor the Funds' Transfer Agent is responsible for any
shareholder loss incurred in acting upon written or telephone instructions for
redemption or exchange of Fund shares which are reasonably believed to be
genuine. With respect to such telephone transactions, each Fund will follow
reasonable procedures to confirm that instructions communicated by telephone are
genuine (including verification of a form of personal identification) as, if it
does not, such Fund or the Transfer Agent may be liable for any losses due to
unauthorized or fraudulent transactions. Telephone instructions received by
shareholders of the Fund Classes are generally tape recorded. A written
confirmation will be provided for all purchase, exchange and redemption
transactions initiated by telephone.

Systematic Withdrawal Plans
Shareholders of Class A, Class B and Class C Shares who own or purchase
$5,000 or more of shares at the offering price, or net asset value, as
applicable, for which certificates have not been issued may establish a
Systematic Withdrawal Plan for monthly withdrawals of $25 or more, or quarterly
withdrawals of $75 or more, although the Funds do not recommend any specific
amount of withdrawal. This $5,000 minimum does not apply for a Fund's prototype
retirement plans. Shares purchased with the initial investment and through
reinvestment of cash dividends and realized securities profits distributions
will be credited to the shareholder's account and sufficient full and fractional
shares will be redeemed at the net asset value calculated on the third business
day preceding the mailing date.

Checks are dated either the 1st or the 15th of the month, as selected
by the shareholder (unless such date falls on a holiday or a weekend) and are
normally mailed within two business days. Both ordinary income dividends and
realized securities profits distributions will be automatically reinvested in
additional shares of a Class at net asset value. This plan is not recommended
for all investors and should be started only after careful consideration of its
operation and effect upon the investor's savings and investment program. To the
extent that withdrawal payments from the plan exceed any dividends and/or
realized securities profits distributions paid on shares held under the plan,
the withdrawal payments will represent a return of capital and the share balance
may in time be depleted, particularly in a declining market.

The sale of shares for withdrawal payments constitutes a taxable event
and a shareholder may incur a capital gain or loss for federal income tax
purposes. This gain or loss may be long-term or short-term depending on the
holding period for the specific shares liquidated. Premature withdrawals from
retirement plans may have adverse tax consequences.

Withdrawals under this plan made concurrently with the purchases of
additional shares of the same Fund may be disadvantageous to the shareholder.
Purchases of Class A Shares through a periodic investment program in a fund
managed by the Manager must be terminated before a Systematic Withdrawal Plan
with respect to such shares can take effect, except if the shareholder is a
participant in one of our retirement plans or is investing in Delaware Group
funds which do not carry a sales charge. Redemptions of Class A Shares pursuant
to a Systematic Withdrawal Plan may be subject to a Limited CDSC if the purchase
was made at net asset value and a dealer's commission has been paid on that
purchase. Redemptions of Class B Shares or Class C Shares pursuant to a
Systematic Withdrawal Plan may be subject to a CDSC, unless the annual amount
selected to be withdrawn is less than 12% of the account balance on the date
that the Systematic Withdrawal Plan was established. See Waiver of Contingent
Deferred Sales Charge - Class B and Class C Shares and Waiver of Limited
Contingent Deferred Sales Charge - Class A Shares under Redemption and Exchange
in the Prospectus for the Fund Classes. Shareholders should consult their
financial advisers to determine whether a Systematic Withdrawal Plan would be
suitable for them.

-60-
<PAGE>

(SAI-DGG&I/PART B)

An investor wishing to start a Systematic Withdrawal Plan must complete an
authorization form. If the recipient of Systematic Withdrawal Plan payments is
other than the registered shareholder, the shareholder's signature on this
authorization must be guaranteed. Each signature guarantee must be supplied by
an eligible guarantor institution. The Funds reserve the right to reject a
signature guarantee supplied by an eligible institution based on its
creditworthiness. This plan may be terminated by the shareholder or the Transfer
Agent at any time by giving written notice.

The Systematic Withdrawal Plan is not available for the Institutional
Classes, currently, any of the Fund Classes of Global Equity Fund.

-61-

<PAGE>

(SAI-DGG&I/PART B)

DISTRIBUTIONS

International Equity Fund and Global Assets Fund will normally declare and
make payments from net investment income on a quarterly basis. Global Bond Fund
will normally declare and make payments from net investment income on a monthly
basis. International Small Cap, Emerging Markets and Global Equity Funds
each will normally declare and make payments from net investment income on an
annual basis.

Payments from net realized securities profits of a Fund, if any, will be
distributed annually in the quarter following the close of the fiscal year.

Dividend payments of $1.00 or less will be automatically reinvested,
notwithstanding a shareholder's election to receive dividends in cash. If such a
shareholder's dividends increase to greater than $1.00, the shareholder would
have to file a new election in order to begin receiving dividends in cash again.
Any check in payment of dividends or other distributions which cannot be
delivered by the United States Post Office or which remains uncashed for a
period of more than one year may be reinvested in the shareholder's account at
the then-current net asset value and the dividend option may be changed from
cash to reinvest. A Fund may deduct from a shareholder's account the costs of
the Fund's effort to locate a shareholder if a shareholder's mail is returned by
the U.S. Post Office or the Fund is otherwise unable to locate the shareholder
or verify the shareholder's mailing address. These costs may include a
percentage of the account when a search company charges a percentage fee in
exchange for their location services. See also Other Tax Requirements under
Accounting and Tax Issues.

Each class of shares of a Fund will share proportionately in the
investment income and expenses of that Fund, except that, absent any applicable
fee waiver, Class A Shares, Class B Shares and Class C Shares alone will incur
distribution fees under their respective 12b-1 Plans. See Plans Under Rule 12b-1
for the Fund Classes.

-62-

<PAGE>

(SAI-DGG&I/PART B)

INVESTMENT MANAGEMENT AGREEMENTS AND SUB-ADVISORY AGREEMENT

Delaware International Advisers Ltd. ("Delaware International" or the
"Manager"), located at Veritas House, 125 Finsbury Pavement, London, England
EC2A 1NQ, furnishes investment management services to each Fund, subject to the
supervision and direction of Global Funds, Inc.'s Board of Directors. Delaware
International is affiliated with Delaware Management Company, Inc. ("Delaware").
Delaware International has entered into separate Sub-Advisory Agreements with
Delaware for Global Assets Fund and Global Equity Fund.

Delaware and its predecessors have been managing the funds in the Delaware
Group since 1938. On April 30, 1997, Delaware and its affiliates within the
Delaware Group, including Delaware International, were managing in the aggregate
more than $32 billion in assets in the various institutional or separately
managed (approximately $20,677,606,000) and investment company (approximately
$11,935,210,000) accounts.

The Investment Management Agreement for each Fund, with the exception of
International Small Cap, Emerging Markets and Global Equity Funds, and the
Sub-Advisory Agreement for Global Assets Fund are dated April 3, 1995 and were
approved by shareholders on March 29, 1995. The Investment Management Agreement
for Emerging Markets Fund is dated May 1, 1996 and was approved by shareholders
on April 30, 1996. The Investment Management Agreements for International
Small Cap Fund and Global Equity Fund, and the Sub-Advisory Agreement for Global
Equity Fund are each dated July 21, 1997 and were approved by the initial
shareholder on July 18, 1997.

The Agreements have an initial term of two years and may be further
renewed after their initial terms only so long as such renewal and continuance
are specifically approved at least annually by the Board of Directors or by vote
of a majority of the outstanding voting securities of the Fund to which the
Agreement relates, and only if the terms of the renewal thereof have been
approved by the vote of a majority of the directors of Global Funds, Inc. who
are not parties thereto or interested persons of any such party, cast in person
at a meeting called for the purpose of voting on such approval. The Agreements
are terminable without penalty on 60 days' notice by the directors of Global
Funds, Inc. or by the Manager. The Agreements will terminate automatically in
the event of their assignment.

The Manager manages each Fund's investments. The compensation paid by
International Equity, Global Bond and Global Assets Funds for investment
management services is equal to (on an annual basis) 0.75% of each Fund's
respective average daily net assets, less all directors' fees paid to the
unaffiliated directors by the Fund. The compensation paid by International
Small Cap Fund and Emerging Markets Fund for investment management services is
equal to (on an annual basis) 1.25% of the Fund's average daily net assets and
the investment management compensation paid by Global Equity Fund, is equal to
(on an annual basis) 0.80% of the Fund's average daily net assets. The fees paid
to Delaware International, while higher than the advisory fees paid to other
mutual funds in general, are comparable to fees paid by other mutual funds with
similar objectives and policies.

Under the separate Sub-Advisory Agreements for Global Assets Fund and
Global Equity Fund, Delaware manages the Funds' investments in U.S. securities.
Delaware will receive from the Manager, 25% of the investment management fees
under the Manager's Investment Management Agreement with Global Funds, Inc. on
behalf of Global Assets Fund and 50% of the investment management fees under the
Investment Management Agreement for Global Equity Fund.

-63-

<PAGE>

(SAI-DGG&I/PART B)

On November 30, 1996, the total net assets of Global Funds, Inc. were
$173,937,190, broken down as follows:

International Equity Fund $136,158,064
Global Bond Fund $10,999,283
Global Assets Fund $20,063,476
Emerging Markets Fund $6,716,367

Beginning December 1, 1995, Delaware International had elected
voluntarily to waive that portion, if any, of the annual management fees payable
by International Equity Fund, Global Bond Fund and Global Assets Fund and to
reimburse the Fund's expenses to the extent necessary to ensure that the Total
Operating Expenses (i) of Class A Shares of those Funds do not exceed 1.85%,
1.25% and 1.25%, respectively, (ii) of Class B Shares of those Funds do not
exceed 2.55%, 1.95% and 1.95%, respectively, and (iii) of Institutional
Class of shares of those Funds do not exceed 1.55%, 0.95% and 0.95%,
respectively (in each case, exclusive of taxes, interest, brokerage commissions
and extraordinary expenses, but inclusive of 12b-1 expenses) through November
30, 1996. Delaware International had elected to voluntarily waive that portion,
if any, of the annual management fees payable by Emerging Markets Fund and to
reimburse the Fund's expenses to ensure that the Total Operating Expenses of the
Class A Shares, Class B Shares, Class C Shares and the Institutional Class of
this Fund do not exceed 2.00%, 2.70%, 2.70% and 1.70% (exclusive of taxes,
interest, brokerage commissions and extraordinary expenses, but inclusive of
applicable 12b-1 expenses) from the date of initial public offering through
November 30, 1996. The voluntary waivers for each of these Funds have been
extended through November 30, 1997.

Beginning with the commencement of operations of International Small
Cap Fund through December 31, 1997, Delaware International has voluntarily
elected to waive that portion, if any, of the annual management fees payable by
International Small Cap Fund and to reimburse the Fund's expenses to the
extent necessary to ensure that the Total Operating Expenses of the Class A
Shares, Class B Shares, Class C Shares and the Institutional Class of this Fund
do not exceed 2.00%, 2.70%, 2.70% and 1.70%, respectively (exclusive of taxes,
interest, brokerage commissions and extraordinary expenses, but inclusive of
applicable 12b-1 expenses).

Beginning with the commencement of operations of Global Equity Fund
through December 31, 1997, the Distributor has elected to voluntarily waive
12b-1 expenses and Delaware International has elected to voluntarily waive that
portion, if any, of the annual management fees payable by Global Equity Fund and
to reimburse the Fund's expenses to the extent necessary to ensure that the
Total Operating Expenses of each Class of the Fund do not exceed 0.80% on an
annualized basis.

From June 1, 1994 through November 30, 1994, Delaware International
elected voluntarily to waive that portion, if any, of the annual management fees
payable by International Equity Fund and to reimburse the Fund's expenses to the
extent necessary to ensure that the Total Operating Expenses of International
Equity Fund A Class and International Equity Fund Institutional Class did not
exceed 1.50% (exclusive of taxes, interest, brokerage commissions, extraordinary
expenses and, in the case of International Equity Fund A Class, 12b-1 expenses).
Through November 30, 1994, the waiver and reimbursement noted above with respect
to International Equity Fund A Class also applied to International Equity Fund B
Class. Prior to June 1, 1994, a waiver and reimbursement commitment was in place
to ensure expenses did not exceed 1.25% (exclusive of taxes, interest, brokerage
commissions and extraordinary expenses, but inclusive of 12b-1 expenses) and
0.95% (exclusive of taxes, interest, brokerage commissions and extraordinary
expenses) for International Equity Fund A Class and International Equity Fund
Institutional Class, respectively. Delaware International had also elected to
voluntarily waive that portion, if any, of the annual management fees payable by
Global Bond Fund and

-64-

<PAGE>

(SAI-DGG&I/PART B)

Global Assets Fund and to reimburse a Fund's expenses to ensure that the Total
Operating Expenses of these Funds (exclusive of taxes, interest, brokerage
commissions, extraordinary expenses and, in the case of Global Bond Fund A
Class, Global Bond Fund B Class, Global Assets Fund A Class and Global Assets
Fund B Class, 12b-1 expenses) did not exceed 0.95% through November 30, 1995.

Investment management fees incurred for the last three fiscal years
with respect to each Fund which was operational at the end of the last fiscal
year follows:

<TABLE>
<CAPTION>
Fund November 30, 1996 November 30, 1995 November 30, 1994
- ---- ----------------- ----------------- -----------------

<S> <C> <C> <C>
International Equity Fund $792,625 earned $512,638 paid $415,544 earned
$683,170 paid $266,273 paid
$109,455 waived $149,271 waived

Global Bond Fund(1) $29,065 earned $4,777 earned N/A
-$0- paid -$0- paid N/A
$29,065 waived $4,777 waived N/A

Global Assets Fund(1) $95,908 paid $12,907 earned N/A
-$0- paid -$0- paid N/A
$95,908 waived $12,907 waived N/A

Emerging Markets Fund(2) $35,197 earned N/A N/A
-$0- paid N/A N/A
$35,197 waived N/A N/A
</TABLE>

(1) Date of initial public offering was December 27, 1994.
(2) Date of initial public offering was June 10, 1996.

Delaware International and Delaware are controlled and indirectly,
wholly owned by Delaware Management Holdings, Inc.

Except for those expenses borne by the Manager under the Investment
Management Agreements and the Distributor under the Distribution Agreements,
each Fund is responsible for all of its own expenses. Among others, these
include each Fund's proportionate share of rent and certain other administrative
expenses; the investment management fees; transfer and dividend disbursing agent
fees and costs; custodian expenses; federal and state securities registration
fees; proxy costs; and the costs of preparing prospectuses and reports sent to
shareholders.

-65-

<PAGE>

(SAI-DGG&I/PART B)

The ratios of expenses to average net assets for the fiscal year ended
November 30, 1996 for each Class of International Equity Fund, Global Bond Fund
and Global Assets Fund were as follows:

<TABLE>
<CAPTION>
Institutional
Class A Shares Class B Shares Class C Shares Class
-------------- -------------- -------------- -----

<S> <C> <C> <C> <C>
International Equity Fund 1.85% 2.55% 2.55% 1.55%
Global Bond Fund 1.25% 1.95% 1.95% 0.95%
Global Assets Fund 1.25% 1.95% 1.95% 0.95%
</TABLE>

The ratios for Class A Shares, Class B Shares and Class C Shares
reflect the impact of 12b-1 Plan fees and the ratios for each Class reflect the
voluntary waiver of fees by the Manager noted above. The ratios of expenses to
average daily net assets for Class A Shares, Class B Shares, Class C Shares and
Institutional Class of International Small Cap Fund and Emerging Markets Fund
are expected to equal, on an annual basis, 2.00%, 2.70%, 2.70% and 1.70%,
respectively, reflecting the 12b-1 Plan fees in the case of Class A Shares,
Class B Shares and Class C Shares, and the waiver of fees by the Manager noted
above. The ratios of expenses to average daily net assets on an annualized basis
for all Classes of Global Equity Fund are each expected to equal 0.80%,
reflecting the waivers of investment management and 12b-1 Plan fees, and the
reimbursement of expenses, all as described below.

Distribution and Service
The Distributor, Delaware Distributors, L.P. (which formerly conducted
business as Delaware Distributors, Inc.), located at 1818 Market Street, serves
as the national distributor of the shares of International Equity, Global Bond
and Global Assets Funds, under separate Distribution Agreements dated April 3,
1995, as amended on November 29, 1995. The Distributor serves as the national
distributor of Emerging Markets Fund's shares under a Distribution Agreement
dated May 1, 1996 and also serves in the same capacity for International Small
Cap Fund and Global Equity Fund under separate Distribution Agreements July
21, 1997. The Distributor is an affiliate of the Manager and bears all of the
costs of promotion and distribution, except for payments by each Fund on behalf
of its respective Class A Shares, Class B Shares and Class C Shares under the
12b-1 Plan for each class. Prior to January 3, 1995, Delaware Distributors, Inc.
("DDI") served as the national distributor of each Fund's shares. On that date,
Delaware Distributors, L.P., a newly formed limited partnership, succeeded to
the business of DDI. All officers and employees of DDI became officers and
employees of Delaware Distributors, L.P. DDI is the corporate general partner of
Delaware Distributors, L.P. and both DDI and Delaware Distributors, L.P. are
indirect, wholly owned subsidiaries of Delaware Management Holdings, Inc.

The Transfer Agent, Delaware Service Company, Inc., another affiliate
of the Manager located at 1818 Market Street, Philadelphia, PA 19103, serves as
the shareholder servicing, dividend disbursing and transfer agent for each
Fund under an amended and restated agreement dated July 21, 1997. The Transfer
Agent provides accounting services to the Funds pursuant to the terms of a
separate Fund Accounting Agreement. The Transfer Agent is also an indirect,
wholly owned subsidiary of Delaware Management Holdings, Inc.

-66-

<PAGE>

(SAI-DGG&I/PART B)

OFFICERS AND DIRECTORS

The business and affairs of Global Funds, Inc. are managed under the
direction of its Board of Directors.

Certain officers and directors of Global Funds, Inc. hold identical
positions in each of the other funds in the Delaware Group. As of June 30,
1997, the officers and directors of Global Funds, Inc., as a group, owned less
than 1% of the outstanding shares of Class A, Class B and Class C Shares of
International Equity Fund, Global Assets Fund, Global Bond Fund and Emerging
Markets Fund and 2.60% of the outstanding share of International Equity Fund
Institutional Class; and 6.44% of the outstanding shares of Global Bond Fund
Institutional Class; and 15.17% of the outstanding shares of Global Assets
Fund Institutional Class.

As of June 30, 1997, management believes the following accounts held
5% or more of a Class of shares of a Fund:

<S> <C> <C> <C>
Class Name and Address of Account Share Amount Percentage
- ----- --------------------------- ------------ ----------

International Merrill Lynch, Pierce, Fenner & Smith
Equity Fund B Class For the Sole Benefit of its Customers
Attention: Fund Administration
4800 Deer Lake Drive East - 3rd Floor
Jacksonville, FL 32246 304,902 19.00%

International Merrill Lynch, Pierce Fenner & Smith
Equity Fund C Class For the Sole Benefit of its Customers
Attention: Fund Administration
4800 Deer Lake Drive East - 3rd Floor
Jacksonville, FL 32246 226,064 45.89%

International Equity Northern Telecom, Inc.
Fund Institutional Class Long Term Investment Plan
c/o BTNY Service
Attention: Gina Anzalone
34 Exchange Place MS 3064
Jersey City, NJ 07302 1,463,915 45.43%

RS 401(k) Plan
Price Waterhouse LLP Savings Plan
1410 North Westshore Blvd.
P.O. Box 30004
Tampa, FL 33630 821,449 25.49%

</TABLE>

-67-
<PAGE>

(SAI-DGG&I/PART B)

<S> <C> <C> <C>
Class Name and Address of Account Share Amount Percentage
- ----- --------------------------- ------------ ----------

International Equity RS DMC Employee Profit Sharing Plan
Fund Institutional Class Delaware Management Company
Employee Profit Sharing Trust
c/o Rick Seidel
1818 Market Street
Philadelphia, PA 19103 318,624 9.89%

Charles Schwab & Co. Inc.
Attention: Mutual Fund Dept.
101 Montgomery Street
San Francisco, CA 94104 253,310 7.86%

Global Assets Fund Richard H. Hoffman
A Class and Merris Ann Hoffman
1811 Lesher Mill Road
Palm, PA 18070 29,804 6.58%

Global Assets Fund Merrill Lynch, Pierce, Fenner & Smith
B Class For the Sole Benefit of its Customers
Attention: Fund Administration
4800 Deer Lake Drive East - 3rd Floor
Jacksonville, FL 32246 107,031 39.28%

Global Assets Fund Merrill Lynch, Pierce, Fenner & Smith
C Class For the Sole Benefit of its Customers
Attention: Fund Administration
4800 Deer Lake Drive East - 3rd Floor
Jacksonville, FL 32246 119,422 60.54%

Emery Jahnke
Ann Jahnke JT TEN
2402 Lilac Lane
Fargo, ND 58102 18,294 9.27%

Global Assets Fund Delaware Management Co.
Institutional Class c/o Joseph H. Hastings
1818 Market Street - 17th Floor
Philadelphia, PA 19103 89,319 53.20%

RS DMC Employee Profit Sharing Plan
Delaware Management Company
Employee Profit Sharing Trust
c/o Rick Seidel
1818 Market Street
Philadelphia, PA 19103 68,694 40.91%
</TABLE>

-68-

<PAGE>

(SAI-DGG&I/PART B)

<S> <C> <C> <C>
Class Name and Address of Account Share Amount Percentage
- ----- --------------------------- ------------ ----------

Global Bond Fund B Class Merrill Lynch, Pierce, Fenner & Smith
For the Sole Benefit of its Customers
Attention: Fund Administration
4800 Deer Lake Drive East - 3rd Floor
Jacksonville, FL 32246 10,755 10.32%

NFSC/FEBO
Bodil B. Ottesen
6004 Hunt Ridge Road #2631
Baltimore, MD 21210 9,309 8.93%

NFSC/FMTC IRA
FBO Jennifer J. Thomas
12603 Mt. Laurel Court
Reisterstown, MD 21136 9,197 8.81%

Bruce A. Baker and Claire B. Baker
3 Nolen Lane
Darien, CT 06820 8,546 8.20%

Global Bond Fund C Class NFSC/FMTC IRA Rollover
FBO Lester C. Gilman, Jr.
1485 Kathleen Place
Englewood, FL 34223 21,656 38.42%

Prudential Securities, Inc.
FBO Cline G. Hickok
120 Nature Valley Place
Owatonna, MN 55060 9,726 17.26%

Donaldson Lufkin Jenrette
Securities Corporation, Inc.
P.O. Box 2052
Jersey City, NJ 07303 3,106 5.51%

NFSC/FEBO
John S. McNally
Charlotte McNally
457 Glenview Drive
Lower Burrell, PA 15068 2,978 5.28%

Global Bond Fund Lincoln National Life Insurance Co.
Institutional Class Attention: Karen Gerke 4CO1
1300 S. Clinton Street
Fort Wayne, IN 46802 203,038 22.53%

</TABLE>

-69-
<PAGE>

(SAI-DGG&I/PART B)

<S> <C> <C> <C>
Class Name and Address of Account Share Amount Percentage
- ----- --------------------------- ------------ ----------

Global Bond Fund Delaware Management Co.
Institutional Class c/o Joseph H. Hastings
1818 Market Street - 17th Floor
Philadelphia, PA 19103 44,810 5.53%

DMC Employee Profit Sharing Plan
Delaware Management Company, Inc.
Employee Profit Sharing Trust
c/o Rick Seidel
1818 Market Street
Philadelphia, PA 19103 48,605 5.39%

Emerging Markets Fund John B. Delander
A Class P.O. Box 2873
Clearwater, FL 34617 50,000 5.42%

Emerging Markets Fund Merrill Lynch, Pierce, Fenner & Smith
C Class For the Sole Benefit of its Customers
Attention: Fund Administration
4800 Deer Lake Drive East - 3rd Floor
Jacksonville, FL 32246 24,674 27.52%

NFSC/FMTC IRA Rollover
FBO Lester C. Gilman, Jr.
1485 Kathleen Place
Englewood, FL 34223 5,472 6.10%

Emerging Markets Fund Prudential Securities, Inc.
C Class FBO Cline G. Hickok &
Dianne R. Hickok JT TEN
120 Nature Valley Place
Owatonna, MN 55060 5,417 6.04%

Emerging Markets Fund RS DMC Employee Profit Sharing Plan
Institutional Class Delaware Management Company
Employee Profit Sharing Trust
c/o Rick Seidel
1818 Market Street
Philadelphia, PA 19103 119,053 67.78%

Bost & Co.
Mutual Funds Operations
P.O. Box 3198
Pittsburgh, PA 15230 29,661 16.89%

</TABLE>

-70-

<PAGE>

(SAI-DGG&I/PART B)

DMH Corp., Delaware Voyageur Holdings, Inc., Delaware Management
Company, Inc., Delaware Distributors, L.P., Delaware Distributors, Inc.,
Delaware Service Company, Inc., Delaware Management Trust Company, Delaware
International Holdings Ltd., Founders Holdings, Inc., Delaware International
Advisers Ltd., Delaware Capital Management, Inc. and Delaware Investment &
Retirement Services, Inc. are direct or indirect, wholly owned subsidiaries of
Delaware Management Holdings, Inc. ("DMH"). On April 3, 1995, a merger between
DMH and a wholly owned subsidiary of Lincoln National Corporation ("Lincoln
National") was completed. In connection with the merger, new Investment
Management Agreements between Global Funds, Inc. on behalf of each Fund, with
the exception of International Small Cap Fund, Emerging Markets Fund and
Global Equity Fund, and the Manager, and a new Sub-Advisory Agreement between
the Manager and the Sub-Adviser on behalf of Global Assets Fund were executed
following shareholder approval. DMH, the Manager and the Sub-Adviser are now
indirect, wholly owned subsidiaries, and 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.

Certain officers and directors of Global Funds, Inc. hold identical
positions in each of the other funds in the Delaware Group. Directors and
principal officers of Global Funds, Inc. are noted below along with their ages
and their business experience for the past five years. Unless otherwise noted,
the address of each officer and director is One Commerce Square, Philadelphia,
PA 19103.

*Wayne A. Stork (60)
Chairman, President, Chief Executive Officer, Director and/or Trustee
of Global Funds, Inc., 32 other investment companies in the
Delaware Group, Delaware Management Holdings, Inc., DMH
Corp., Delaware International Holdings Ltd. and Founders
Holdings, Inc.
Chairman and Director of Delaware Distributors, Inc. and Delaware
Capital Management, Inc.
Chairman, President, Chief Executive Officer, Chief Investment Officer
and Director of Delaware Management Company, Inc.
Chairman, Chief Executive Officer and Director of Delaware
International Advisers Ltd.
Director of Delaware Service Company, Inc. and Delaware Investment &
Retirement Services, Inc.
During the past five years, Mr. Stork has served in various executive
capacities at different times within the Delaware
organization.

Richard G. Unruh, Jr. (57)
Executive Vice President of Global Funds, Inc. and each of the other
32 investment companies in the Delaware Group.
Executive Vice President and Director of Delaware Management
Company, Inc.
Senior Vice President of Delaware Management Holdings, Inc. and
Delaware Capital Management, 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.

*Director affiliated with the Funds' investment manager and considered an
"interested person" as defined in the 1940 Act.

-71-

<PAGE>

(SAI-DGG&I/PART B)

Paul E. Suckow (49)
Executive Vice President/Chief Investment Officer, Fixed Income of
Global Funds, Inc., each of the other 32 investment
companies in the Delaware Group and Delaware Management
Company, Inc.
Executive Vice President/Chief Investment Officer, Fixed Income and
Director of Founders Holdings, Inc.
Senior Vice President/Chief Investment Officer, Fixed Income of
Delaware Management Holdings, Inc.
Senior Vice President of Delaware Capital Management, Inc.
Director of Founders CBO Corporation.
Director of HYPPCO Finance Company Ltd.
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.

Walter P. Babich (69)
Director and/or Trustee of Global Funds, Inc. and each of the other
32 investment companies 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 (58)
Director and/or Trustee of Global Funds, Inc. and each of the other 32
investment companies in the Delaware Group.
500 Fifth Avenue, New York, NY 10110.
Founder and Managing Director, 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 (56)
Director and/or Trustee of Global Funds, Inc. and each of the other
32 investment companies 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 1992, she was Adjunct Professor of Columbia Business
School.

W. Thacher Longstreth (76)
Director and/or Trustee of Global Funds, Inc. and each of the other
32 investment companies in the Delaware Group.
City Hall, Philadelphia, PA 19107.
Philadelphia City Councilman.

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(SAI-DGG&I/PART B)

Thomas F. Madison (61)
Director and/or Trustee of Global Funds, Inc. and 32 other investment
companies in the Delaware Group.
President and Chief Executive Officer, MLM Partners, Inc.
200 South Fifth Street, Suite 2100, Minneapolis, Minnesota 55402.
Mr. Madison has also been Chairman of the Board of Communications
Holdings, Inc. since 1996. From February to September 1994,
Mr. Madison served as Vice Chairman--Office of the CEO of The
Minnesota Mutual Life Insurance Company and from 1988 to 1993,
he was President of U.S. WEST Communications--Markets.

* Jeffrey J. Nick (44)
Director and/or Trustee of Global Funds, Inc. and 32 other investment
companies in the Delaware Group.
President, Chief Executive Officer and Director of Lincoln National
Investment Companies, Inc. From 1992 to 1996, Mr. Nick was
Managing Director of Lincoln National UK plc and from 1989 to
1992, he was Senior Vice President responsible for corporate
planning and development for Lincoln National Corporation.

Charles E. Peck (71)
Director and/or Trustee of Global Funds, Inc. and each of the other
32 investment companies in the Delaware Group.
P.O. Box 1102, Columbia, MD 21044.
Secretary/Treasurer, Enterprise Homes, Inc.
From 1981 to 1990, Mr. Peck was Chairman and Chief Executive
Officer of The Ryland Group, Inc., Columbia, MD.

- -----------------
*Director affiliated with the Funds' investment manager and considered an
"interested person" as defined in the 1940 Act.

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<PAGE>

(SAI-DGG&I/PART B)

David K. Downes (57)
Executive Vice President/Chief Operating Officer/Chief Financial
Officer of Global Funds, Inc., each of the other 32 investment
companies in the Delaware Group, Delaware Management Holdings,
Inc. and Delaware Capital Management, Inc. Executive Vice
President, Chief Operating Officer, Chief Financial Officer
and Director of Delaware Management Company, Inc., DMH Corp.,
Delaware Distributors, Inc., Founders Holdings, Inc. and
Delaware International Holdings Ltd. Chairman and Director of
Delaware Management Trust Company. Chairman and Director of
Delaware Investment & Retirement Services, Inc.
President/Chief Executive Officer/Chief Financial Officer and Director
of Delaware Service Company, Inc.
Senior Vice President/Chief Administrative Officer/ Chief Financial
Officer of Delaware Distributors, L.P.
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.

George M. Chamberlain, Jr. (50)
Senior Vice President and Secretary of Global Funds, Inc., each of
the other 32 investment companies in the Delaware Group,
Delaware Management Holdings, Inc. and Delaware Distributors,
L.P.
Executive Vice President, Secretary and Director of Delaware Management
Trust Company.
Senior Vice President, Secretary and Director of DMH Corp., Delaware
Management Company, Inc., Delaware Distributors, Inc.,
Delaware Service Company, Inc., Founders Holdings, Inc.,
Delaware Investment & Retirement Services, Inc. and Delaware
Capital Management, 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.

George H. Burwell (35)
Vice President/Senior Portfolio Manager of Global Funds, Inc., of
seven other investment companies 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 (37)
Vice President/Senior Portfolio Manager of Global Funds, Inc., of
11 other investment companies 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. Matlack has served in various
capacities at different times within the Delaware
organization.

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(SAI-DGG&I/PART B)

Gerald T. Nichols (39)
Vice President/Senior Portfolio Manager of Global Funds, Inc., of
11 other investment companies in the Delaware Group and of
Delaware Management Company, Inc.
Vice President of Founders Holdings, Inc.
Assistant Secretary, 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.

Joseph H. Hastings (47)
Vice President/Corporate Controller of Global Funds, Inc., each of
the other 32 investment companies in the Delaware Group,
Delaware Distributors, L.P., Delaware Service Company, Inc.
and Delaware International Holdings Ltd.
Senior Vice President/Corporate Controller/Treasurer of Delaware
Management Holdings, Inc., DMH Corp. and Delaware Management
Company, Inc.
Senior Vice President/Treasurer of Delaware Distributors, Inc.
Senior Vice President/Corporate Controller of Founders Holdings, Inc.
Vice President/Treasurer of Delaware Capital Management, Inc.
Chief Financial Officer/Treasurer of Delaware Investment & Retirement
Services, Inc.
Executive Vice President/Chief Financial Officer/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.

Michael P. Bishof (34)
Vice President/Treasurer of Global Funds, Inc., each of the other
32 investment companies in the Delaware Group, Delaware
Distributors, L.P. , Delaware Service Company, Inc. and
Founders Holdings, Inc.
Senior Vice President of Delaware Management Company, Inc. and
Delaware Distributors, Inc.
Vice President/Manager of Investment Accounting of Delaware
International Holdings Ltd.
Assistant Treasurer of Founders CBO Corporation.
Before joining the Delaware Group in 1995, Mr. Bishof was a Vice
President for Bankers Trust, New York, NY from 1994 to 1995,
a Vice President for CS First Boston Investment Management,
New York, NY from 1993 to 1994 and an Assistant Vice President
for Equitable Capital
Management Corporation, New York, NY from 1987 to 1993.

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(SAI-DGG&I/PART B)

The following is a compensation table listing for each director
entitled to receive compensation, the aggregate compensation received from
Global Funds, Inc. and the total compensation received from all Delaware Group
funds for the fiscal year ended November 30, 1996 and an estimate of annual
benefits to be received upon retirement under the Delaware Group Retirement Plan
for Directors/Trustees as of November 30, 1996.

<TABLE>
<CAPTION>
Pension or
Retirement Total
Benefits Estimated Compensation
Aggregate Accrued Annual from all 18
Compensation as Part of Benefits Delaware Group
from Global Global Funds, Upon Investment
Name Funds, Inc. Inc. Expenses Retirement* Companies

<S> <C> <C> <C> <C>
W. Thacher Longstreth $1,447 None $30,000 $45,145
Ann R. Leven $1,700 None $30,000 $53,280
Walter P. Babich $1,523 None $30,000 $49,144
Anthony D. Knerr $1,681 None $30,000 $52,280
Charles E. Peck $1,607 None $30,000 $48,280
Thomas F. Madison** N/A None $30,000 N/A
</TABLE>

* Under the terms of the Delaware Group Retirement Plan for
Directors/Trustees, each disinterested director who, at the time of his or
her retirement from the Board, has attained the age of 70 years and served
on the Board for at least five continuous years, is entitled to receive
payments from each fund in the Delaware Group for a period equal to the
lesser of the number of years that such person served as a director or the
remainder of such person's life. The amount of such payments will be equal,
on an annual basis, to the amount of the annual retainer that is paid to
directors of each fund at the time of such person's retirement. If an
eligible director retired as of November 30, 1996, he or she would be
entitled to annual payments totaling $30,000, in the aggregate, from all of
the funds in the Delaware Group, based on the number of funds in the
Delaware Group as of that date.

** Thomas F. Madison joined Global Funds, Inc's Board of Directors on April 30,
1997.

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<PAGE>

(SAI-DGG&I/PART B)

EXCHANGE PRIVILEGE

The exchange privileges available for shareholders of the Fund's classes and
for shareholders of classes of other funds in the Delaware Group are set forth
in the relevant prospectuses for such classes. The following supplements that
information. Each Fund may modify, terminate or suspend the exchange privilege
upon 60 days' notice to shareholders.

All exchanges involve a purchase of shares of the fund into which the
exchange is made. As with any purchase, an investor should obtain and carefully
read that fund's prospectus before buying shares in an exchange. The prospectus
contains more complete information about the fund, including charges and
expenses. A shareholder requesting an exchange will be sent a current prospectus
and an authorization form for any of the other mutual funds in the Delaware
Group. Exchange instructions must be signed by the record owner(s) exactly as
the shares are registered.

An exchange constitutes, for tax purposes, the sale of one fund and the
purchase of another. The sale may involve either a capital gain or loss to the
shareholder for federal income tax purposes.

In addition, investment advisers and dealers may make exchanges between
funds in the Delaware Group on behalf of their clients by telephone or other
expedited means. This service may be discontinued or revised at any time by the
Transfer Agent. Such exchange requests may be rejected if it is determined that
a particular request or the total requests at any time could have an adverse
effect on any of the funds. Requests for expedited exchanges may be submitted
with a properly completed exchange authorization form, as described above.

Telephone Exchange Privilege
Shareholders owning shares for which certificates have not been issued or
their investment dealers of record may exchange shares by telephone for shares
in other mutual funds in the Delaware Group. This service is automatically
provided unless the relevant Fund receives written notice from the shareholder
to the contrary.

Shareholders or their investment dealers of record may contact the
Shareholder Service Center at 800-523- 1918 or, in the case of shareholders of
the Institutional Classes, their Client Services Representative at 800-828-
5052, to effect an exchange. The shareholder's current Fund account number must
be identified, as well as the registration of the account, the share or dollar
amount to be exchanged and the fund into which the exchange is to be made.
Requests received on any day after the time the offering price and net asset
value are determined will be processed the following day. See Determining
Offering Price and Net Asset Value. Any new account established through the
exchange will automatically carry the same registration, shareholder information
and dividend option as the account from which the shares were exchanged. The
exchange requirements of the fund into which the exchange is being made, such as
sales charges, eligibility and investment minimums, must be met. (See the
prospectus of the fund desired or inquire by calling the Transfer Agent or, as
relevant, your Client Services Representative.) Certain funds are not available
for retirement plans.

The telephone exchange privilege is intended as a convenience to
shareholders and is not intended to be a vehicle to speculate on short-term
swings in the securities market through frequent transactions in and out of the
funds in the Delaware Group. Telephone exchanges may be subject to limitations
as to amounts or frequency. The Transfer Agent and each Fund reserve the right
to record exchange instructions received by telephone and to reject exchange
requests at any time.

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(SAI-DGG&I/PART B)

As described in the Funds' Prospectuses, neither the Funds nor their
Transfer Agent is responsible for any shareholder loss incurred in acting upon
written or telephone instructions for redemption or exchange of Fund shares
which are reasonably believed to be genuine.

Right to Refuse Timing Accounts
With regard to accounts that are administered by market timing services
("Timing Firms") to purchase or redeem shares based on changing economic and
market conditions ("Timing Accounts"), each Fund will refuse any new timing
arrangements, as well as any new purchases (as opposed to exchanges) in Delaware
Group funds from Timing Firms. A Fund reserves the right to temporarily or
permanently terminate the exchange privilege or reject any specific purchase
order for any person whose transactions seem to follow a timing pattern who: (i)
makes an exchange request out of the Fund within two weeks of an earlier
exchange request out of the Fund, or (ii) makes more than two exchanges out of
the Fund per calendar quarter, or (iii) exchanges shares equal in value to at
least $5 million, or more than 1/4 of 1% of the Fund's net assets. Accounts
under common ownership or control, including accounts administered so as to
redeem or purchase shares based upon certain predetermined market indicators,
will be aggregated for purposes of the exchange limits.

Restrictions on Timed Exchanges
Timing Accounts operating under existing timing agreements may only execute
exchanges between the following eight Delaware Group funds: (1) Decatur Income
Fund, (2) Decatur Total Return Fund, (3) Delaware Fund, (4) Limited-Term
Government Fund, (5) Tax-Free USA Fund, (6) Delaware Cash Reserve, (7)
Delchester Fund and (8) Tax-Free Pennsylvania Fund. No other Delaware Group
funds are available for timed exchanges. Assets redeemed or exchanged out of
Timing Accounts in Delaware Group funds not listed above may not be reinvested
back into that Timing Account. Each Fund reserves the right to apply these same
restrictions to the account(s) of any person whose transactions seem to follow a
timing pattern (as described above).

Each Fund also reserves the right to refuse the purchase side of an exchange
request by any Timing Account, person, or group if, in the Manager's judgment,
the Fund would be unable to invest effectively in accordance with its investment
objectives and policies, or would otherwise potentially be adversely affected. A
shareholder's purchase exchanges may be restricted or refused if a Fund receives
or anticipates simultaneous orders affecting significant portions of the Fund's
assets. In particular, a pattern of exchanges that coincide with a "market
timing" strategy may be disruptive to a Fund and therefore may be refused.

Except as noted above, only shareholders and their authorized brokers of
record will be permitted to make exchanges or redemptions.

* * *

Following is a summary of the investment objectives of the other Delaware
Group funds:

Delaware Fund seeks long-term growth by a balance of capital appreciation,
income and preservation of capital. It uses a dividend-oriented valuation
strategy to select securities issued by established companies that are believed
to demonstrate potential for income and capital growth. Devon Fund seeks current
income and capital appreciation by investing primarily in income-producing
common stocks, with a focus on common stocks the Manager believes have the
potential for above average dividend increases over time.

Trend Fund seeks long-term growth by investing in common stocks issued by
emerging growth companies exhibiting strong capital appreciation potential.

Value Fund seeks capital appreciation by investing primarily in common
stocks whose market values appear low relative to their underlying value or
future potential.
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<PAGE>

(SAI-DGG&I/PART B)

DelCap Fund seeks long-term capital growth by investing in common stocks and
securities convertible into common stocks of companies that have a demonstrated
history of growth and have the potential to support continued growth.

Decatur Income Fund seeks the highest possible current income by investing
primarily in common stocks that provide the potential for income and capital
appreciation without undue risk to principal. Decatur Total Return Fund seeks
long-term growth by investing primarily in securities that provide the potential
for income and capital appreciation without undue risk to principal. Blue Chip
Fund seeks to achieve long-term capital appreciation. Current income is a
secondary objective. It seeks to achieve these objectives by investing primarily
in equity securities and any securities that are convertible into equity
securities. Quantum Fund seeks to achieve long-term capital appreciation. It
seeks to achieve this objective by investing in equity securities of medium-to
large-sized companies expected to grow over time that meet the Fund's "Social
Criteria" strategy.

Delchester Fund seeks as high a current income as possible by investing
principally in high yield, high risk corporate bonds, and also in U.S.
government securities and commercial paper. Strategic Income Fund seeks to
provide investors with high current income and total return by using a
multi-sector investment approach, investing principally in three sectors of the
fixed-income securities markets: high yield, higher risk securities, investment
grade fixed-income securities and foreign government and other foreign
fixed-income securities.

U.S. Government Fund seeks high current income by investing primarily in
long-term U.S. government debt obligations issued or guaranteed by the U.S.
government, its agencies or instrumentalities.

Limited-Term Government Fund seeks high, stable income by investing
primarily in a portfolio of short-and intermediate-term securities issued or
guaranteed by the U.S. government, its agencies or instrumentalities and
instruments secured by such securities. U.S. Government Money Fund seeks maximum
current income with preservation of principal and maintenance of liquidity by
investing only in short-term securities issued or guaranteed as to principal and
interest by the U.S. government, its agencies or instrumentalities, and
repurchase agreements collateralized by such securities, while maintaining a
stable net asset value.

Delaware Cash Reserve seeks the highest level of income consistent with the
preservation of capital and liquidity through investments in short-term money
market instruments, while maintaining a stable net asset value.

Tax-Free USA Fund seeks high current income exempt from federal income tax
by investing in municipal bonds of geographically-diverse issuers. Tax-Free
Insured Fund invests in these same types of securities but with an emphasis on
municipal bonds protected by insurance guaranteeing principal and interest are
paid when due. Tax-Free USA Intermediate Fund seeks a high level of current
interest income exempt from federal income tax, consistent with the preservation
of capital by investing primarily in municipal bonds.

Tax-Free Money Fund seeks high current income, exempt from federal income
tax, by investing in short-term municipal obligations, while maintaining a
stable net asset value.

Tax-Free Pennsylvania Fund seeks a high level of current interest income
exempt from federal and, to the extent possible, certain Pennsylvania state and
local taxes, consistent with the preservation of capital.

Enterprise Fund seeks to provide maximum appreciation of capital by
investing in medium-sized companies which have a dominant position within their
industry, are undervalued, or have potential for growth in earnings. U.S. Growth
Fund seeks to maximize capital appreciation by investing in companies of all
sizes
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<PAGE>

(SAI-DGG&I/PART B)

which have low dividend yields, strong balance sheets and high expected earnings
growth rates relative to their industry. World Growth Fund seeks to maximize
total return (capital appreciation and income), principally through investments
in an internationally diversified portfolio of equity securities. New Pacific
Fund seeks long-term capital appreciation by investing primarily in companies
which are domiciled in or have their principal business activities in the
Pacific Basin. Federal Bond Fund seeks to maximize current income consistent
with preservation of capital. The fund attempts to achieve this objective by
investing primarily in securities issued by the U.S. government, its agencies
and instrumentalities. Corporate Income Fund seeks to provide high current
income consistent with preservation of capital. The fund attempts to achieve
this objective primarily by investing in a diversified portfolio of investment
grade fixed-income securities issued by U.S. corporations.

Delaware Group Premium Fund, Inc. offers fifteen funds available
exclusively as funding vehicles for certain insurance company separate accounts.
Decatur Total Return Series (formerly known as Equity/Income Series) seeks the
highest possible total rate of return by selecting issues that exhibit the
potential for capital appreciation while providing higher than average dividend
income. Delchester Series (formerly know as High Yield Series) seeks as high a
current income as possible by investing in rated and unrated corporate bonds,
U.S. government securities and commercial paper. Capital Reserves Series seeks a
high stable level of current income while minimizing fluctuations in principal
by investing in a diversified portfolio of short-and intermediate-term
securities. Cash Reserve Series (formerly known as Money Market Series) seeks
the highest level of income consistent with preservation of capital and
liquidity through investments in short-term money market instruments. DelCap
Series (formerly known as Growth Series) seeks long-term capital appreciation by
investing its assets in a diversified portfolio of securities exhibiting the
potential for significant growth. Delaware Series (formerly known as Multiple
Strategy Series) seeks a balance of capital appreciation, income and
preservation of capital. It uses a dividend-oriented valuation strategy to
select securities issued by established companies that are believed to
demonstrate potential for income and capital growth. International Equity Series
seeks long-term growth without undue risk to principal by investing primarily in
equity securities of foreign issuers that provide the potential for capital
appreciation and income. Value Series seeks capital appreciation by investing in
small- to mid-cap common stocks whose market value appears low relative to their
underlying value or future earnings and growth potential. Emphasis will also be
placed on securities of companies that may be temporarily out of favor or whose
value is not yet recognized by the market. Trend Series (formerly known as
Emerging Growth Series) seeks long-term capital appreciation by investing
primarily in small-cap common stocks and convertible securities of emerging and
other growth- oriented companies. These securities will have been judged to be
responsive to changes in the market place and to have fundamental
characteristics to support growth. Income is not an objective. Global Bond
Series seeks to achieve current income consistent with the preservation of
principal by investing primarily in global fixed-income securities that may also
provide the potential for capital appreciation. Strategic Income Series seeks
high current income and total return by using a multi-sector investment
approach, investing primarily in three sectors of the fixed-income securities
markets: high-yield, higher risk securities; investment grade fixed-income
securities; and foreign government and other foreign fixed-income securities.
Devon Series seeks current income and capital appreciation by investing
primarily in income-producing common stocks, with a focus on common stocks that
the investment manager believes have the potential for above-average dividend
increases over time. Emerging Markets Series seeks to achieve long-term capital
appreciation by investing primarily in equity securities of issuers located or
operating in emerging countries. Convertible Securities Series seeks a high
level of total return on its assets through a combination of capital
appreciation and current income by investing primarily in convertible
securities. Quantum Series seeks to achieve long-term capital appreciation by
investing primarily in equity securities of medium to large-sized companies
expected to grow over time that meet the Series' "Social Criteria" strategy.

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<PAGE>
(SAI-DGG&I/PART B)

Delaware-Voyageur US Government Securities Fund seeks to provide a high
level of current income consistent with the prudent investment risk by investing
in U.S. Treasury bills, notes, bonds, and other obligations issued or
unconditionally guaranteed by the full faith and credit of the U.S. Treasury,
and repurchase agreements fully secured by such obligations.

Delaware-Voyageur Tax-Free Arizona Insured Fund seeks to provide a high
level of current income exempt from federal income tax and the Arizona personal
income tax, consistent with the preservation of capital. Delaware-Voyageur
Minnesota Insured Fund seeks to provide a high level of current income exempt
from federal income tax and the Minnesota personal income tax, consistent with
the preservation of capital.

Delaware-Voyageur Tax-Free Minnesota Intermediate Fund seeks to provide a
high level of current income exempt from federal income tax and the Minnesota
personal income tax, consistent with preservation of capital. The Fund seeks to
reduce market risk by maintaining an average weighted maturity from five to ten
years.

Delaware-Voyageur Tax-Free California Insured Fund seeks to provide a high
level of current income exempt from federal income tax and the California
personal income tax, consistent with the preservation of capital.
Delaware-Voyageur Tax-Free Florida Insured Fund seeks to provide a high level of
current income exempt from federal income tax, consistent with the preservation
of capital. The Fund will seek to select investments that will enable its shares
to be exempt from the Florida intangible personal property tax.
Delaware-Voyageur Tax-Free Florida Fund seeks to provide a high level of current
income exempt from federal income tax, consistent with the preservation of
capital. The Fund will seek to select investments that will enable its shares to
be exempt from the Florida intangible personal property tax. Delaware-Voyageur
Tax-Free Kansas Fund seeks to provide a high level of current income exempt from
federal income tax, the Kansas personal income tax and the Kansas Intangible
personal property tax, consistent with the preservation of capital.
Delaware-Voyageur Tax-Free Missouri Insured Fund seeks to provide a high level
of current income exempt from federal income tax and the Missouri personal
income tax, consistent with the preservation of capital. Delaware-Voyageur
Tax-Free New Mexico Fund seeks to provide a high level of current income exempt
from federal income tax and the New Mexico personal income tax, consistent with
the preservation of capital. Delaware-Voyageur Tax-Free Oregon Insured Fund
seeks to provide a high level of current income exempt from federal income tax
and the Oregon personal income tax, consistent with the preservation of capital.
Delaware-Voyageur Tax-Free Utah Fund seeks to provide a high level of current
income exempt from federal income tax, consistent with the preservation of
capital. Delaware-Voyageur Tax-Free Washington Insured Fund seeks to provide a
high level of current income exempt from federal income tax, consistent with the
preservation of capital.

Delaware-Voyageur Tax-Free Florida Intermediate Fund seeks to provide a high
level of current income exempt from federal income tax, consistent with the
preservation of capital. The Fund will seek to select investments that will
enable its shares to be exempt from the Florida intangible personal property
tax. The Fund seeks to reduce market risk by maintaining an average weighted
maturity from five to ten years.

Delaware-Voyageur Tax-Free Arizona Fund seeks to provide a high level of
current income exempt from federal income tax and the Arizona personal income
tax, consistent with the preservation of capital. Delaware-Voyageur Tax-Free
California Fund seeks to provide a high level of current income exempt from
federal income tax and the California personal income tax, consistent with the
preservation of capital. Delaware-Voyageur Tax-Free Iowa Fund seeks to provide a
high level of current income exempt

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<PAGE>
(SAI-DGG&I/PART B)

from federal income tax and the Iowa personal income tax, consistent with the
preservation of capital. Delaware-Voyageur Tax-Free Idaho Fund seeks to provide
a high level of current income exempt from federal income tax and the Idaho
personal income tax, consistent with the preservation of capital.
Delaware-Voyageur Minnesota High Yield Municipal Bond Fund seeks to provide a
high level of current income exempt from federal income tax and the Minnesota
personal income tax primarily through investment in medium and lower grade
municipal obligations. National High Yield Municipal Fund seeks to provide a
high level of income exempt from federal income tax, primarily through
investment in medium and lower grade municipal obligations. Delaware-Voyageur
Tax-Free New York Fund seeks to provide a high level of current income exempt
from federal income tax and the personal income tax of the state of New York and
the city of New York, consistent with the preservation of capital. Delaware-
Voyageur Tax-Free Wisconsin Fund seeks to provide a high level of current income
exempt from federal income tax and the Wisconsin personal income tax, consistent
with the preservation of capital.

Delaware-Voyageur Tax-Free Colorado Fund seeks to provide a high level of
current income exempt from federal income tax and the Colorado personal income
tax, consistent with the preservation of capital.

Aggressive Growth Fund seeks long-term capital appreciation, which the Fund
attempts to achieve by investing primarily in equity securities believed to have
the potential for high earnings growth. Although the Fund, in seeking its
objective, may receive current income from dividends and interest, income is
only an incidental consideration in the selection of the Fund's investments.
Growth Stock Fund has an objective of long-term capital appreciation. The Fund
seeks to achieve its objective from equity securities diversified among
individual companies and industries. Tax-Efficient Equity Fund seeks to obtain
for taxable investors a high total return on an after-tax basis. The Fund will
attempt to achieve this objective by seeking to provide a high long-term
after-tax total return through managing its portfolio in a manner that will
defer the realization of accrued capital gains and minimize dividend income.

Delaware-Voyageur Tax-Free Minnesota Fund seeks to provide a high level of
current income exempt from federal income tax and the Minnesota personal income
tax, consistent with the preservation of capital. Delaware-Voyageur Tax-Free
North Dakota Fund seeks to provide a high level of current income exempt from
federal income tax and the North Dakota personal income tax, consistent with the
preservation of capital.

For more complete information about any of the Delaware Group funds,
including charges and expenses, you can obtain a prospectus from the
Distributor. Read it carefully before you invest or forward funds.

Each of the summaries above is qualified in its entirety by the information
contained in each fund's prospectus(es).

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<PAGE>

(SAI-DGG&I/PART B)

GENERAL INFORMATION

Delaware International is the investment manager of each Fund of Global
Funds, Inc. and Delaware is the sub-adviser to Global Assets Fund and Global
Equity Fund. Delaware International, or its affiliate Delaware, also manages the
other funds in the Delaware Group. Delaware, through a separate division, also
manages private investment accounts. While investment decisions of each Fund are
made independently from those of the other funds and accounts, investment
decisions for such other funds and accounts may be made at the same time as
investment decisions for a Fund.

Delaware International, or its affiliate Delaware also manages the
investment options for Delaware Medallion(sm) III Variable Annuity. Medallion is
issued by Allmerica Financial Life Insurance and Annuity Company (First
Allmerica Financial Life Insurance Company in New York and Hawaii). Delaware
Medallion offers fifteen different investment series ranging from domestic
equity funds, international equity and bond funds and domestic fixed income
funds. Each investment series available through Medallion utilizes an investment
strategy and discipline the same as or similar to one of the Delaware Group
mutual funds available outside the annuity. See Delaware Group Premium Fund,
Inc., above.

Access persons and advisory persons of the Delaware Group of funds, as those
terms are defined in SEC Rule 17j-1 under the 1940 Act, who provide services to
Delaware, Delaware International or their affiliates, are permitted to engage in
personal securities transactions subject to the exceptions set forth in Rule
17j-1 and the following general restrictions and procedures: (1) certain
blackout periods apply to personal securities transactions of those persons; (2)
transactions must receive advance clearance and must be completed on the same
day as the clearance is received; (3) certain persons are prohibited from
investing in initial public offerings of securities and other restrictions apply
to investments in private placements of securities; (4) opening positions may
only be closed-out at a profit after a 60-day holding period has elapsed; and
(5) the Compliance Officer must be informed periodically of all securities
transactions and duplicate copies of brokerage confirmations and account
statements must be supplied to the Compliance Officer.

The Distributor acts as national distributor for each of the Funds and for
the other mutual funds in the Delaware Group. As previously described, prior to
January 3, 1995, DDI served as the national distributor for the Funds. The
Distributor ("DDLP") (for all periods after January 3, 1995) and, in its
capacity as such, DDI (prior to January 3, 1995) received net commissions from
each Fund on behalf of Class A Shares, after reallowances to dealers, as
follows:
International Equity Fund
Class A Shares
<TABLE>
<CAPTION>
Total
Amount of
Fiscal Under- Amounts Net
Year writing Reallowed Commission
Ended Commissions to Dealers to DDLP/DDI
----- ----------- ---------- -----------

<S> <C> <C> <C> <C>
11/30/96 $279,857 $231,351 $48,506
11/30/95 299,368 259,217 40,151
11/30/94 653,278 564,877 88,401

</TABLE>
-83-

<PAGE>

(SAI-DGG&I/PART B)

Global Bond Fund
Class A Shares
<TABLE>
<CAPTION>
Total
Amount of
Fiscal Under- Amounts Net
Year writing Reallowed Commission
Ended Commissions to Dealers to DDLP/DDI
----- ----------- ---------- -----------

<S> <C> <C> <C>
11/30/96 $22,383 $18,968 $3,415
11/30/95(1) 5,712 4,661 1,051

</TABLE>
(1) Date of initial public offering was December 27, 1994.

Global Assets Fund
Class A Shares
Total
<TABLE>
<CAPTION>
Amount of
Fiscal Under- Amounts Net
Year writing Reallowed Commission
Ended Commissions to Dealers to DDLP/DDI
----- ----------- ---------- -----------
<S> <C> <C> <C>
11/30/96 $76,066 $63,246 $12,820
11/30/95(1) 27,931 24,095 3,836

</TABLE>
(1) Date of initial public offering was December 27, 1994.

Emerging Markets Fund
Class A Shares
Total
<TABLE>
<CAPTION>
Fiscal Amount of Amounts Net
Year Underwriting Reallowed Commission
Ended Commissions to Dealers to Distributor
----- ----------- ---------- --------------
<S> <C> <C> <C>
11/30/96(1) $21,927 $18,174 $3,753

</TABLE>

(1) Date of initial public offering was June 10, 1996.

-84-
<PAGE>
(SAI-DGG&I/PART B)

The Distributor and, in its capacity as such, DDI received in the
aggregate Limited CDSC payments with respect to Class A Shares of each Fund as
follows:

Limited CDSC Payments
<TABLE>
<CAPTION>
Fiscal
Year International Equity Global Bond Global Assets Emerging Markets
Ended Fund A Class Fund A Class (1) Fund A Class (1) Fund A Class (1)
----- ------------ ---------------- ---------------- ----------------

(1) Date of initial public offering of Global Bond Fund A Class and Global
Assets Fund A Class was December 27, 1994. Date of initial public
offering of Emerging Markets Fund A Class was June 10, 1996.

The Distributor and, in its capacity as such, DDI received in the
aggregate CDSC payments with respect to Class B Shares of each Fund as follows:

CDSC Payments
<TABLE>
<CAPTION>
Fiscal
Year International Equity Global Bond Global Assets Emerging Markets
Ended Fund B Class Fund B Class (1) Fund B Class (1) Fund B Class (1)
----- ------------ ---------------- ---------------- ----------------

(1) Date of initial public offering of Global Bond Fund B Class and Global
Assets Fund B Class was December 27, 1994. Date of initial public
offering of Emerging Markets Fund B Class was June 10, 1996.

-85-

<PAGE>

(SAI-DGG&I/PART B)

The Distributor and, in its capacity as such, DDI received in the
aggregate CDSC payments with respect to Class C Shares of each Fund as follows:

CDSC Payments
<TABLE>
<CAPTION>
Fiscal
Year International Equity Global Bond Global Assets Emerging Markets
Ended Fund C Class (1) Fund C Class (1) Fund C Class (1) Fund C Class (1)
----- ---------------- ---------------- ---------------- ----------------
<C> <C> <C> <C> <C>
11/30/96 $127 --- $580 ---
11/30/95 --- --- --- N/A
</TABLE>

(1) Date of initial public offering of International Equity Fund C Class,
Global Bond Fund C Class and Global Assets Fund C Class was November
29, 1995. Date of initial public offering of Emerging Markets Fund C
Class was June 10, 1996.

Effective as of January 3, 1995, all such payments described above have
been paid to the Distributor.

The Transfer Agent, an affiliate of Delaware International and
Delaware, acts as shareholder servicing, dividend disbursing and transfer agent
for each Fund and for the other mutual funds in the Delaware Group. The Transfer
Agent is paid a fee by each Fund for providing these services consisting of an
annual per account charge of $5.50 for each Fund plus transaction charges for
particular services according to a schedule. Compensation is fixed each year and
approved by the Board of Directors, including a majority of the unaffiliated
directors. The Transfer Agent also provides accounting services to each Fund.
Those services include performing all functions related to calculating each
Fund's net asset value and providing all financial reporting services,
regulatory compliance testing and the related accounting services. For its
services, the Transfer Agent is paid a fee based on total assets of all funds in
the Delaware Group for which it provides such accounting services. Such fee is
equal to 0.25% multiplied by the total amount of assets in the complex for which
the Transfer Agent furnishes accounting services, where such aggregate complex
assets are $10 billion or less, and 0.20% of assets if such aggregate complex
assets exceed $10 billion. The fees are charged to each fund, including each
Fund, on an aggregate pro-rata basis. The asset-based fee payable to the
Transfer Agent is subject to a minimum fee calculated by determining the total
number of investment portfolios and associated classes.

Delaware and its affiliates own the name "Delaware Group." Under
certain circumstances, including the termination of Global Funds, Inc.'s
advisory relationship with Delaware International and Delaware or its
distribution relationship with the Distributor, Delaware and its affiliates
could cause Global Funds, Inc. to delete the words "Delaware Group" from Global
Funds, Inc.'s name.

The Chase Manhattan Bank ("Chase"), 4 Chase Metrotech Center, Brooklyn,
NY 11245, is custodian of each Fund's securities and cash. As custodian for the
Fund, Chase maintains a separate account or accounts for each Fund; receives,
holds and releases portfolio securities on account of each Fund; receives and
disburses money on behalf of each Fund; and collects and receives income and
other payments and distributions on account of each Fund's portfolio securities.

The legality of the issuance of the shares offered hereby, registered
pursuant to Rule 24f-2 under the 1940 Act, has been passed upon for Global
Funds, Inc. by Stradley, Ronon, Stevens & Young, LLP, Philadelphia,
Pennsylvania.

-86-
<PAGE>
(SAI-DGG&I/PART B)

Capitalization
Global Funds, Inc. has a present authorized capitalization of one
billion shares of capital stock with a $0.01 par value per share.

The Board of Directors has allocated fifty million shares to each of
the Fund's Class A Shares and Institutional Class, and has allocated twenty-five
million shares to each of the Fund's Class B Shares and Class C Shares.

While shares of Global Funds, Inc. have equal voting rights, except as
noted below, on matters affecting the Funds, each Fund would vote separately on
any matter it is directly affected by, such as any change in its fundamental
investment policies and as otherwise prescribed by the 1940 Act. Shares of each
Fund have a priority in that Fund's assets, and in gains on and income from the
portfolio of that Fund. All shares have no preemptive rights, are fully
transferable and, when issued, are fully paid and nonassessable.

Shares of each Class of shares of a Fund represent a proportionate
interest in the assets of such Fund, and have the same voting and other rights
and preferences as the other classes of that Fund, except that shares of a
Fund's Institutional Class may not vote on any matter affecting the Fund
Classes' Plans under Rule 12b-1. Similarly, as a general matter, shareholders of
Class A Shares, Class B Shares and Class C Shares of a Fund may vote only on
matters affecting the 12b-1 Plan that relates to the class of shares that they
hold. However, Class B Shares of a Fund may vote on any proposal to increase
materially the fees to be paid by a Fund under the 12b-1 Plan relating to its
Class A Shares. General expenses of a Fund will be allocated on a pro-rata basis
to the respective classes according to asset size, except that expenses of the
12b-1 Plans of each Fund's Class A Shares, Class B Shares and Class C Shares
will be allocated solely to those Classes.

The Registration Statements of the Funds and Classes of Global Funds,
Inc. became effective on the following dates:
<TABLE>
<CAPTION>
<S> <C>
International Equity Fund October 30, 1991
International Equity Fund A Class October 30, 1991
International Equity Fund B Class September 6, 1994
International Equity Fund C Class November 29, 1995
International Equity Fund Institutional Class November 9, 1992

Global Assets Fund October 30, 1991
Global Assets Fund A Class October 30, 1991
Global Assets Fund B Class December 27, 1994
Global Assets Fund C Class November 29, 1995
Global Assets Fund Institutional Class November 9, 1992

Global Bond Fund October 30, 1991
Global Bond Fund A Class October 30, 1991
Global Bond Fund B Class December 27, 1994
Global Bond Fund C Class November 29, 1995
Global Bond Fund Institutional Class November 9, 1992
</TABLE>

-87-
<PAGE>
(SAI-DGG&I/PART B)
<TABLE>
<CAPTION>

<S> <C>
Emerging Markets Fund
Emerging Markets Fund A Class May 1, 1996
Emerging Markets Fund B Class May 1, 1996
Emerging Markets Fund C Class May 1, 1996
Emerging Markets Fund Institutional Class May 1, 1996

International Small-Cap Fund
International Small-Cap Fund A Class July 21, 1997
International Small-Cap Fund B Class July 21, 1997
International Small-Cap Fund C Class July 21, 1997
International Small-Cap Fund Institutional Class July 21, 1997

Global Equity Fund
Global Equity Fund A Class July 21, 1997
Global Equity Fund B Class July 21, 1997
Global Equity Fund C Class July 21, 1997
Global Equity Fund Institutional Class July 21, 1997
</TABLE>

Prior to September 6, 1994, International Equity Fund A Class was known
as International Equity Fund class and International Equity Fund Institutional
Class was known as International Equity Fund (Institutional) class.

Noncumulative Voting
Global Funds, Inc. shares have noncumulative voting rights which means
that the holders of more than 50% of the shares of Global Funds, Inc. voting for
the election of directors can elect all the directors if they choose to do so,
and, in such event, the holders of the remaining shares will not be able to
elect any directors.

This Part B does not include all of the information contained in the
Registration Statement which is on file with the SEC.

-88-

<PAGE>
(SAI-DGG&I/PART B)

APPENDIX A--IRA INFORMATION

An individual can contribute up to $2,000 to his or her IRA each year.
Contributions may or may not be deductible depending upon the taxpayer's
adjusted gross income and whether the taxpayer or his or her spouse is an active
participant in an employer-sponsored retirement plan. Even if a taxpayer (or his
or her spouse) is an active participant in an employer-sponsored retirement
plan, the full $2,000 deduction is still available if the taxpayer's adjusted
gross income is below $25,000 ($40,000 for taxpayers filing joint returns). A
partial deduction is allowed for married couples with incomes between $40,000
and $50,000, and for single individuals with incomes between $25,000 and
$35,000. No deductions are available for contributions to IRAs by taxpayers
whose adjusted gross income before IRA deductions exceeds $50,000 ($35,000 for
singles) and who are active participants in an employer-sponsored retirement
plan. Taxpayers who were not allowed deductions on IRA contributions still can
make nondeductible IRA contributions of as much as $2,000 for each working
spouse ($2,250 for one-income couples for years prior to 1997), and defer taxes
on interest or other earnings from the IRAs. Special rules apply for determining
the deductibility of contributions made by married individuals filing separate
returns.

As illustrated in the following tables, maintaining an IRA remains a
valuable opportunity.

For many, an IRA will continue to offer both an up-front tax break with
its tax deduction each year and the real benefit that comes with tax-deferred
compounding. For others, losing the tax deduction will impact their taxable
income status each year. Over the long term, however, being able to defer taxes
on earnings still provides an impressive investment opportunity--a way to have
money grow faster due to tax-deferred compounding.

Even if your IRA contribution is no longer deductible, the benefits of
saving on a tax-deferred basis can be substantial. Additional exhibits found in
this Appendix A illustrate the benefits of tax-deferred versus taxable
compounding. For illustration purposes, each reflects a constant 10% rate of
return, with the reinvestment of all proceeds compounded at a frequency
indicated at the top of each exhibit. When used in advertising and other
promotional materials, the rate of return and compounding frequency used
(monthly compounding for Global Bond Fund, quarterly for the Global Assets and
International Equity Fund and annually for Emerging Markets Fund,
International Small-Cap Fund and Global Equity Fund) will reflect the actual
annualized return experienced by each Fund or a representative average return of
each Fund's peer mutual funds. The tables do not take into account any sales
charges or fees. Of course, earnings accumulated in your IRA will be subject to
tax upon withdrawal.

-89-
<PAGE>
(SAI-DGG&I/PART B)

The first table reflects a constant 10% rate of return, compounded
annually, with the reinvestment of all proceeds. The tables do not take into
account any sales charges or fees. If you choose a mutual fund with a
fluctuating net asset value, like any Fund of Global Funds, Inc., your bottom
line at retirement could be lower-- it could also be much higher.

$2,000 Invested Annually Assuming a 10% Annualized Return

15% Tax Bracket Single - $0-$24,650
Joint - $0-$41,200
<TABLE>
<CAPTION>
How Much You
End of Cumulative How Much You Have With Full
Year Investment Amount Have Without IRA IRA Deduction
---- ----------------- ---------------- -------------
<S> <C> <C> <C> <C>
1 $ 2,000 $ 1,844 $ 2,200
5 10,000 10,929 13,431
10 20,000 27,363 35,062
15 30,000 52,074 69,899
20 40,000 89,231 126,005
25 50,000 145,103 216,364
30 60,000 229,114 361,887
35 70,000 355,438 596,254
40 80,000 545,386 973,704
</TABLE>

[Without IRA--investment of $1,700 ($2,000 less 15%) earning 8.5%
(10% less 15%)]

28% Tax Bracket Single - $24,651-$59,750
Joint - $41,201-$99,600
<TABLE>
<CAPTION>
End of Cumulative How Much You How Much You Have with Full IRA
Year Investment Amount Have Without IRA No Deduction Deduction
---- ----------------- ---------------- ------------ ---------

[Without IRA--investment of $1,440 ($2,000 less 28%) earning 7.2% (10% less
28%)]
[With IRA--No Deduction--investment of $1,440 ($2,000 less 28%) earning
10%]

-90-
<PAGE>
(SAI-DGG&I/PART B)

31% Tax Bracket Single - $59,751-$124,650
Joint - $99,601-$151,750
<TABLE>
<CAPTION>

End of Cumulative How Much You How Much You Have with Full IRA
Year Investment Amount Have Without IRA No Deduction Deduction
---- ----------------- ---------------- ------------ ---------

[Without IRA--investment of $1,380 ($2,000 less 31%) earning 6.9% (10% less
31%)]
[With IRA--No Deduction--investment of $1,380 ($2,000 less 31%) earning
10%]

36% Tax Bracket Single - $124,651-$271,050
Joint - $151,751-$271,050
<TABLE>
<CAPTION>

End of Cumulative How Much You How Much You Have with Full IRA
Year Investment Amount Have Without IRA No Deduction Deduction
---- ----------------- ---------------- ------------ ---------

[Without IRA--investment of $1,280 ($2,000 less 36%) earning 6.4% (10% less
36%)]
[With IRA--No Deduction--investment of $1,280 ($2,000 less 36%) earning
10%]

-91-
<PAGE>
(SAI-DGG&I/PART B)

39.6% Tax Bracket* Single - over $271,050
----------------- Joint - over $271,050
<TABLE>
<CAPTION>

End of Cumulative How Much You How Much You Have with Full IRA
Year Investment Amount Have Without IRA No Deduction Deduction
---- ----------------- ---------------- ------------ ---------

[Without IRA--investment of $1,208 ($2,000 less 39.6%) earning 6.04% (10% less
39.6%)]
[With IRA--No Deduction--investment of $1,208 ($2,000 less 39.6% earning
10%]

* For tax years beginning after 1992, a 36% tax rate applies to all taxable
income in excess of the maximum dollar amounts subject to the 31% tax rate.
In addition, a 10% surtax (not applicable to capital gains) applies to
certain high-income taxpayers. It is computed by applying a 39.6% rate to
taxable income in excess of $271,050. The above tables do not reflect the
personal exemption phaseout nor the limitations of itemized deductions that
may apply.

-92-
<PAGE>
(SAI-DGG&I/PART B)
$2,000 SINGLE INVESTMENT AT A RETURN OF 10% COMPOUNDED MONTHLY
<TABLE>
<CAPTION>

$2,000 INVESTED ANNUALLY AT A RETURN OF 10% COMPOUNDED MONTHLY
<TABLE>
<CAPTION>

TAXABLE - TAXABLE - TAXABLE - TAXABLE - TAXABLE - TAX
YEARS 39.6%* 36%* 31% 28% 15% DEFERRED
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
10 $ 28,276 $ 28,891 $ 29,773 $ 30,317 $ 32,819 $ 36,018
15 50,241 51,913 54,348 55,875 63,110 72,877
20 79,928 83,590 89,014 92,468 109,373 133,521
30 174,276 187,150 206,891 219,878 287,948 397,466
40 346,618 383,214 441,441 481,071 704,501 1,111,974

</TABLE>

-93-
<PAGE>
(SAI-DGG&I/PART B)

$2,000 SINGLE INVESTMENT AT A RETURN OF 10% COMPOUNDED QUARTERLY
<TABLE>
<CAPTION>

TAXABLE - TAXABLE - TAXABLE - TAXABLE - TAXABLE - TAX
YEARS 39.6%* 36%* 31% 28% 15% DEFERRED
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
10 $ 3,642 $ 3,774 $ 3,964 $ 4,083 $ 4,638 $ 5,370
15 4,915 5,184 5,581 5,833 7,062 8,800
20 6,633 7,121 7,857 8,334 10,755 14,419
30 12,081 13,436 15,572 17,012 24,939 38,716
40 22,001 25,352 30,865 34,728 57,831 103,956
</TABLE>

$2,000 INVESTED ANNUALLY AT A RETURN OF 10% COMPOUNDED QUARTERLY
<TABLE>
<CAPTION>

TAXABLE - TAXABLE - TAXABLE - TAXABLE - TAXABLE - TAX
YEARS 39.6%* 36%* 31% 28% 15% DEFERRED
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
10 $ 28,226 $ 28,833 $ 29,702 $ 30,239 $ 32,699 $ 35,834
15 50,104 51,753 54,152 55,654 62,755 72,298
20 79,629 83,239 88,573 91,966 108,525 132,049
30 173,245 185,894 205,256 217,971 284,358 390,394
40 343,773 379,596 436,523 475,187 692,097 1,084,066

</TABLE>

-94-
<PAGE>
(SAI-DGG&I/PART B)

$2,000 SINGLE INVESTMENT AT A RETURN OF 10% COMPOUNDED ANNUALLY
<TABLE>
<CAPTION>

TAXABLE - TAXABLE - TAXABLE - TAXABLE - TAXABLE - TAX
YEARS 39.6%* 36%* 31% 28% 15% DEFERRED
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
10 $ 3,595 $ 3,719 $ 3,898 $ 4,008 $ 4,522 $ 5,187
15 4,820 5,072 5,441 5,675 6,799 8,354
20 6,463 6,916 7,596 8,034 10,224 13,455
30 11,618 12,861 14,803 16,102 23,117 34,899
40 20,884 23,916 28,849 32,272 52,266 90,519

</TABLE>

$2,000 INVESTED ANNUALLY AT A RETURN OF 10% COMPOUNDED ANNUALLY

TAXABLE - TAXABLE - TAXABLE - TAXABLE - TAXABLE - TAX
YEARS 39.6%* 36%* 31% 28% 15% DEFERRED
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
10 $ 28,006 $ 28,581 $ 29,400 $ 29,904 $ 32,192 $ 35,062
15 49,514 51,067 53,314 54,714 61,264 69,899
20 78,351 81,731 86,697 89,838 104,978 126,005
30 168,852 180,566 198,360 209,960 269,546 361,887
40 331,537 364,360 415,973 450,711 641,631 973,704

</TABLE>

-95-
<PAGE>
(SAI-DGG&I/PART B)

THE VALUE OF STARTING YOUR IRA EARLY

The following illustrates how much more you would have contributing $2,000
each January--the earliest opportunity--compared to contributing on April 15th
of the following year--the latest, for each tax year.

After 5 years $3,528 more
10 years $6,113
20 years $17,228
30 years $47,295

Compounded returns for the longest period of time is the key. The above
illustration assumes a 10% rate of return and the reinvestment of all proceeds.

And it pays to shop around. If you get just 2% more per year, it can make
a big difference when you retire. A constant 8% versus 10% return, both
compounded monthly, illustrates the point. This chart is based on a yearly
investment of $2,000 on January 1. After 30 years the difference can mean as
much as 50% more!

8% Return 10% Return
--------- ----------
10 Years $ 31,828 $ 36,018
20 Years 102,476 133,521
30 Years 259,288 397,466

The statistical exhibits above are for illustration purposes only and do not
reflect the actual Fund performance for the Funds either in the past or in the
future.

-96-

<PAGE>
(SAI-DGG&I/PART B)

FINANCIAL STATEMENTS

Ernst & Young LLP serves as the independent auditors for Delaware Group
Global & International Funds, Inc. and, in its capacity as such, audits the
annual financial statements of the Funds. International Equity Fund's, Global
Bond Fund's, Global Assets Fund's and Emerging Markets Fund's Statements of Net
Assets, Statements of Assets and Liabilities, Statements of Operations,
Statements of Changes in Net Assets and Notes to Financial Statements, as well
as the report of Ernst & Young LLP, independent auditors, for the fiscal year
ended November 30, 1996 are included in Delaware Group Global & International
Funds, Inc.'s Annual Report to shareholders. The financial statements, the notes
relating thereto and the report of Ernst & Young LLP listed above are
incorporated by reference from the Annual Report into this Part B.

-97-

<PAGE>
(SAI-DGG&I/PART B)

The Delaware Group includes funds with a wide range of investment
objectives. Stock funds, income funds, national and state-specific tax-free
funds, money market funds, global and international funds and closed-end equity
funds give investors the ability to create a portfolio that fits their personal
financial goals. For more information, shareholders of the Fund Classes should
contact their financial adviser or call Delaware Group at 800-523- 4640 and
shareholders of the Institutional Classes should contact Delaware Group at
800-828-5052.

INVESTMENT MANAGER
Delaware International Advisers Ltd.
Veritas House
125 Finsbury Pavement
London, England EC2A 1NQ

SUB-ADVISER
Delaware Management Company, Inc.
One Commerce Square
Philadelphia, PA 19103

NATIONAL DISTRIBUTOR
Delaware Distributors, L.P.
1818 Market Street
Philadelphia, PA 19103

SHAREHOLDER SERVICING,
DIVIDEND DISBURSING,
ACCOUNTING SERVICES
AND TRANSFER AGENT
Delaware Service Company, Inc.
1818 Market Street
Philadelphia, PA 19103

LEGAL COUNSEL
Stradley, Ronon, Stevens & Young, LLP
One Commerce Square
Philadelphia, PA 19103

INDEPENDENT AUDITORS
Ernst & Young LLP
Two Commerce Square
Philadelphia, PA 19103

CUSTODIAN
The Chase Manhattan Bank
4 Chase Metrotech Center
Brooklyn, NY 11245

- --------------------------------------------------------------------------------
DELAWARE GROUP
- --------------------------------------------------------------------------------
GLOBAL & INTERNATIONAL FUNDS, INC.
- --------------------------------------------------------------------------------

INTERNATIONAL SMALL CAP FUND

- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY SERIES
- --------------------------------------------------------------------------------
GLOBAL BOND SERIES
- --------------------------------------------------------------------------------
GLOBAL ASSETS SERIES
- --------------------------------------------------------------------------------
EMERGING MARKETS SERIES
- --------------------------------------------------------------------------------
GLOBAL EQUITY SERIES
- --------------------------------------------------------------------------------
PART B

STATEMENT OF
ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------

JULY 21, 1997

DELAWARE
GROUP
--------