DELAWARE GROUP GLOBAL & INTERNATIONAL FUNDS INC, N-30D, 1997-02-06

DELAWARE GROUP GLOBAL & INTERNATIONAL FUNDS INC
N-30D, 1997-02-06

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<PAGE>
For International Diversification

DELAWARE GROUP
Global &
International Funds

(VARIOUS PHOTOS DEMONSTRATING SERVICE AND
GUIDENCE, PROFESSIONAL MANAGEMENT AND GOALS)

service and guidance

professional management

1996
Annual
Report

goals

International Equity Fund

Global Bond Fund

Global Assets Fund

Emerging Markets Fund

DELAWARE
GROUP

<PAGE>

A Commitment
To Our
Investors

The Delaware Group investing tradition dates back to 1929. We have a
distinguished history of helping individuals and institutions -- including some
of the world's largest public and private pension funds -- reach their financial
goals.
Headquartered in Philadelphia, Delaware Group's first mutual fund was
established in 1938. Delaware International Advisers Ltd., our international
affiliate, was established in 1990 and is headquartered in London, a global
finance center for more than three centuries.
Today Delaware Group offers a full range of domestic and international
investments. We also manage annuity investments, closed-end funds, and offer
retirement plan services for individuals and global organizations.
Delaware manages more than $32 billion in mutual fund assets and
institutional advisory accounts, including $4.5 billion in international
investments. We're part of a global financial services and investment management
business owned by Lincoln National Corp., whose subsidiaries manage more than
$100 billion in assets, with operations in Europe, Latin America and the Far
East.

(PHOTO OF GLASSES, PEN AND KEYBOARD)

A TRADITION OF SOUND INVESTING

international
diversification

Global & International
Funds' Objectives

International Equity Fund
To seek long-term growth without undue risk to principal by investing primarily
in international equities with the potential for capital appreciation and
income.

Global Bond Fund
To seek current income consistent with the preservation of principal by
investing primarily in international bonds that may also provide the potential
for capital appreciation.

Global Assets Fund
To seek long-term total return by investing in securities, including U.S.
stocks and bonds and foreign stocks and bonds, 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.

Emerging Markets Fund
To seek capital appreciation by investing primarily in equity securities of
issuers located or operating in emerging market countries.

(PHOTO OF ILLUSTRATION FROM GLOBAL AND INTERNATIONAL FUND SALES BROCHURE)

commitment

<PAGE>

professional management

More Than 68 Years Of Investment Experience
has taught us that disciplined strategies and prudent risk management are a
sound approach to any market environment.

(VARIOUS PHOTOS DEMONSTRATING SERVICE AND GUIDANCE, PROFESSIONAL
MANAGEMENT AND GOALS)

goals

Whatever Your Goals,
the years ahead will be shaped by choices you make today. Delaware offers many
options that can be an appropriate part of a sound investment plan.

service and guidance

Delaware Believes That The Guidance of a professional financial adviser is
vital to your long-term success. We are committed to providing you and your
adviser with the highest quality information and service.

<PAGE>

- --------------------------------------------------------------------------------
December 16, 1996

Dear Shareholder:

(PHOTO OF WAYNE A. STORK, CHAIRMAN)

DELAWARE INTERNATIONAL'S CONSISTENT, INCOME-ORIENTED APPROACH FOR EVALUATING
STOCKS AND BONDS ACROSS THE WORLD HELPED ALL OF OUR INTERNATIONAL FUNDS
OUTPERFORM THE AVERAGE OF THEIR PEERS IN 1996.

Many overseas equity markets provided attractive returns in fiscal 1996 as
interest rates declined around the globe. International bond markets, meanwhile,
provided results superior to fixed-income investments in the U.S.
We are pleased that each of Delaware's four global and international
funds outperformed the average of its peers as of November 30, 1996, as shown on
page 2.
This year we marked two important milestones. International Equity Fund
completed its fifth year of operation and provided the highest annual return in
its history. Delaware also introduced an Emerging Markets Fund that has thus far
held up admirably in the face of short-term global market volatility.

Your portfolio managers rely on a consistent, income-oriented approach
to evaluate stocks and bonds across the globe. During 1996, this was especially
helpful in the United Kingdom and "dollar-based" economies -- countries such as
Australia that use a local "dollar" as the basic unit of currency. Generally,
these countries enjoyed low inflation, helping both bonds and stocks.
Five years after the collapse of the Soviet Union, most of the world is
in the midst of an economic Renaissance. We are enjoying an unprecedented period
of growth in free market economies. Governments in both established and emerging
countries are reforming fiscal policy and privatizing state-run enterprises.
This year in the U.S., the stock market provided robust returns despite
a passing fear of inflation that evaporated as economic growth slowed.
Historically, there has been limited direct correlation between the
performance of U.S. markets and those overseas. For U.S. investors, this
provides an opportunity because an investment program that combines domestic and
foreign securities may be less volatile than either investment alone.

1996 annual report
1

<PAGE>

AVERAGE ANNUAL TOTAL RETURN
- --------------------------------------------------------------------------------
One Year Five Years
Periods Ended November 30, 1996
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND A CLASS +24.22% +12.52%
Lipper International Equity Fund Average +14.52% (322 funds) +11.71% (71 funds)
Morgan Stanley Europe Australia Far East (EAFE) Index +12.09% +7.74%
- --------------------------------------------------------------------------------
One Year Lifetime
Periods Ended November 30, 1996
GLOBAL BOND FUND A CLASS +14.35% +17.21%
Lipper General World Income
Fund Average +13.21% (124 funds) +14.94% (104 funds)
Salomon Brothers World Government
Bond Index +11.47% +15.41%
- --------------------------------------------------------------------------------
GLOBAL ASSETS A CLASS +18.17% +20.70%
Lipper Global Flexible
Portfolio Average +16.03% (73 funds) +16.40% (54 funds)
Morgan Stanley World Index +19.24% +19.02%
- --------------------------------------------------------------------------------
EMERGING MARKETS FUND A CLASS -0.30%
Lipper Emerging Markets Fund Average -2.05% (110 funds)
Morgan Stanley Emerging Markets Index -4.62%
- --------------------------------------------------------------------------------
Results are at net asset value and assume reinvestment of dividends and capital
gains, if any. For complete performance information, see pages 8 to 11.
Performance for the Emerging Markets Fund are aggregate results for the very
short time period since June 10, 1996, and should not be viewed as
representative of long-term results. The Morgan Stanley World Index includes
U.S. stock market performance. All returns stated in U.S. dollars.

discipline

International diversification cannot eliminate risk, of course. The
value of currencies fluctuates, and the world has diverse political systems,
accounting standards and securities laws. Your Funds' portfolio managers take
these risk factors into account when selecting securities.
Investing overseas is a long-term commitment, and investors should take
a "long view" of world progress. We are fortunate to be living at a time when
the world is benefiting from the sacrifices made earlier in the 20th century.
For mutual fund investors with vision and patience, the next millennium could
offer a wide variety of investments with capital appreciation and income
potential. Delaware will be there, seeking out these opportunities.

Sincerely,

Wayne A. Stork

Wayne A. Stork
Chairman, President and Chief Executive Officer

1996 annual report
2

<PAGE>

Portfolio Managers' Review

International Equity Fund

Investment Strategy
International Equity Fund invests for long-term growth using a "value" style. We
typically buy dividend-paying stocks in established markets with a four- to
five-year investment horizon in mind. The Fund looks for companies whose stocks
we believe

WE GENERALLY FAVORED BANKING, INDUSTRIAL, UTILITY AND NATURAL RESOURCE COMPANIES
THAT MET OUR DIVIDEND-ORIENTED INVESTMENT GUIDLINES.

offer superior long-term capital appreciation and income potential after taking
into account the potential effects of a country's currency fluctuations,
inflation, local economy and political issues.

Our Country Allocation Augmented Returns
During the past year, your Fund held an above-average concentration of stocks of
companies based in the United Kingdom and other Western Europe countries.
This positioning served shareholders well.
London's unmanaged Financial Times-Stock Exchange (FT-SE) 100 Index, a
United Kingdom market benchmark, rose +16.33% in U.S. dollar terms,
significantly more than the unmanaged Morgan Stanley Europe Australia Far East
(EAFE) Index, a benchmark of stocks in established global markets outside the
U.S.
The EAFE Index was affected by the weak performance of the Japanese
stock market during the second half of fiscal 1996. Japan's financial sector is
still grappling with the effects of the early 1990s recession, and recent
economic growth has been less than expected.
Your Fund benefited from the fact that only 12.4% of net assets were
invested in Japan (compared to 34.7% of the EAFE Index) as of November 30, 1996.
As of this writing, we still believe that the capital appreciation potential of
the Japanese market is

Stocks In Europe
Made Up More Than Half of Your Fund's Portfolio
(November 30, 1996)
<TABLE>
<CAPTION>

International Equity Fund Morgan Stanley EAFE Index
<S> <C> <C>
United Kingdom 26.9% 18.5%
Japan 12.4% 34.7%
Australia/New Zealand 13.8% 3.4%
Hong Kong/Other Pacific 9.0% 7.7%
Spain 6.2% 2.1%
France 7.9% 6.9%
Other Western Europe 14.1% 26.8%
</TABLE>

1996 annual report

<PAGE>

limited. We did find some stocks that met our value criteria, however. One
example, Matsushita Electrical Industrial Corp., which markets Panasonic brand
consumer electronics in the U.S., was one of our top 10 holdings at year's end.
Returns from any portfolio of international stocks are influenced by
three primary factors - circumstances in a particular country's market, a fund
manager's choice of stocks and the relationship of the local currency to the
investor's home currency, in our case the U.S. dollar.
In 1996, your Fund helped protect the dollar value of its holdings by
purchasing currency contracts in five countries, including Japan and Germany.
When the U.S. dollar rose in value against the yen and deutschemark this year,
the rise in the value of our currency contracts more than offset the decline in
the U.S. dollar value of our Japanese and European stocks.
Around the world, we generally favored banking, industrial, utility and
natural resource companies that met our dividend-oriented and growth investment
goals. More than half of the portfolio was invested in Western Europe, a region
we believe offers superior values for investors. We added to our holdings in
France and Spain, where we believe government reform and interest rate cuts may
spur economic growth.
Our Fund's stock selection criteria led us to many large diversified
multinational companies. Australian National Bank, your Fund's largest holding
(3.6% of net assets), owns Michigan National Bank, a large lender in the
Midwest, for example.
One company we added in 1996 was Boots Co. plc, a retail drug store
chain that occupies a leading market position in Britain that's analogous to
RiteAid Corp.'s position in the U.S. Boots (2.7% of net assets) has been
expanding in Europe and selling off non-core businesses.

OUTLOOK
In the coming months, the Fund expects to maintain a higher concentration of
stocks in selected Western European countries than the Morgan Stanley EAFE
Index. We are likely to continue to underweight Japan. Interest rates in Japan
are more likely to rise than not, and in

(Photo of family on beach)

Q. Why is it important to consider a country's inflation rate when investing
abroad?
A. High inflation can reduce the value of a country's currency relative to
the U.S. dollar. That can reduce returns on foreign stocks and bonds for
U.S. investors.

1996 annual report
4
<PAGE>

our opinion there are no clear signs that the Japanese economy is poised for a
sustained expansion.

In the early 1990s in the U.S., many companies restructured operations
to become more competitive and increase returns for shareholders. A similar
process is underway in several European countries, notably France and Germany.
Central banks in several European countries, meanwhile, are making it easier for
businesses to expand by reducing interest rates.

Despite the short-term negative effect that Federal Reserve Board
chairman Alan Greenspan's December comments had on some overseas markets, we
believe international markets generally do not move "in sync" with the U.S. In
our opinion, as the U.S. economy slows in 1997, superior values and capital
appreciation potential may be found overseas.

Gobal Bond Fund Portfolio Highlights
November 30, 1996
- -----------------------------------------------------------------------------
30-Day Yield 4.82%*
Region of Highest Concentration
Western Europe 41.6% of net assets
Average Effective Duration 4.2 years
Average Effective Maturity 5.3 years
Average Quality AAA

*For Class A shares, measured according to Securities and Exchange Commission
guidelines. Thirty-day SEC yield was 4.34% for Class B and Class C shares as of
November 30, 1996.

Global Bond Fund

Investment Strategy
Global Bond Fund relies on real income potential as a key measure of value when
selecting bonds around the world. Our research focuses on long-term factors that
can be analyzed with reasonable certainty and which we believe will have a
fundamental effect on long-term returns, such as inflation trends.

The Funds' portfolio managers place great importance on quality and
select only those bonds rated A or better by rating agencies. Generally, the
Fund's holdings will have an average maturity in the five- to 10-year range,
which we believe offers attractive income potential relative to the risk to
principal from fluctuating interest rates.

International Bonds Outperformed US Bonds
There was a world of contrast between the performance of the U.S. bond market
and that of overseas bond markets in fiscal 1996. While income was the dominant
component of total return from domestic bonds, selected European government
bonds provided substantial capital appreciation.

As of November 30, 1996, the yield on 30-year U.S. Treasury Bonds was
6.36%, about 0.25% higher than a year earlier. From February to

1996 annual report
5
<PAGE>

mid-summer, U.S. investors were preoccupied with a fear of inflation which
proved unjustified, as U.S. economic growth slowed, consumer spending remained
tepid and American voters endorsed the "status quo."
Global Bond Fund reduced its exposure to U.S. bonds during the fall of
1995 after benefiting from the strongest price rally in the U.S. market in a
decade. This positioning, coupled with positive returns from our holdings in
selected European bonds, helped your Fund mitigate the effect of rising interest
rates in the U.S. and outperform the unmanaged Salomon Brothers World Government
Bond Index.
During the year, the U.S. dollar rose in value against many currencies,
notably the Japanese yen. This had a negative effect on investment returns from
some markets. Your Fund's performance benefited from not having any Japanese
bonds during fiscal 1996, and we expect to continue to avoid this market in
1997.

Outlook
In recent months, we have continued to emphasize bonds denominated in non-U.S.
dollar currencies that is, countries such as Canada and New Zealand whose basic
unit of exchange is a local "dollar." As you can see from the yield comparison
chart, long-term Canadian bonds offered between 40 and 70 basis points (0.40% to
0.70%) of additional yield at year's end, relative to comparable maturity U.S.
Treasuries.
At year's end, your Fund held more Canadian bonds than those of any
other country (see page 21). In Europe, we also had substantial holdings of
German and Danish bonds. Many European countries have tight fiscal policies in
place so they can qualify for the forthcoming European Monetary Union, and this
has helped the European bond market.

We Search the World For High Income Potential
(Yields Measured in U.S. Dollars)
<TABLE>
<CAPTION>

U.S. Treasuries Danish Government German Government Canadian Government
Bonds Bonds Bonds
<S> <C> <C> <C> <C>
3 Month 4.99% 5.23% 5.34% 5.24%
6 Month 5.19% 4.47% 5.43% 5.40%
1 Year 5.42% 5.06% 5.67% 5.61%
2 Year 5.68% 5.74% 5.86% 5.80%
3 Year 5.79% 5.81% 5.98% 5.85%
5 Year 5.96% 6.24% 5.85% 5.96%
10 Year 6.19% 7.12% 6.55% 6.61%
30 Year 6.47% 7.82% 7.10% 7.17%

</TABLE>

yield maturity

The above illustration is not intended to represent the yield of Global Bond
Fund. Past performance does not guarantee future results. Unlike U.S.
Treasuries, foreign bonds have currency, political and economic risks and are
not guaranteed by the U.S. government.

Canadian, German and Danish bonds each provided higher yields in U.S. dollars
for U.S. investors as of November 30, 1996. Bonds from these three countries
represented more than one-third of your Fund's net assets at year's end.

1996 annual report
6
<PAGE>
A country's politics affect the returns of any government bond
investment. Fiscal 1996 may have been a watershed year for the U.S., given the
Federal Reserve's successful anti-inflation monetary policy and the apparent
consensus among elected leaders regarding welfare and other fiscal policies.
However, we believe better bond values can generally be found abroad at
the present time, even after factoring in overseas currency fluctuations. During
November, U.S. bond prices rose substantially and we took advantage of the
strong performance to reduce our position. At month's end, U.S. high-yield bonds
and cash represented 12.3% of the Fund's net assets.

Global Assets Fund

Investment Strategy
Global Assets Fund has provided a strong total return in fiscal 1996 that
resulted from the Fund's ability to diversify among four asset classes in both
the U.S. and foreign markets. More than half the Fund's net assets were invested
abroad at year's end. We believe our stock and bond mix gave the Fund the
performance characteristics of a global "balanced fund."
Using the same income-oriented approach as International Equity Fund
and Global Bond Fund, we are able to compare stocks to bonds within a country as
well as across countries with a consistent yardstick. And, of course, we take
inflation into account when we evaluate both U.S. and foreign stocks and bonds.
From this we can evaluate what countries and what asset classes offer the most
attractive risk/reward profile.

* International Stocks
Following the same strategy as the International Equity Fund (see page 3),
Global Assets had a high concentration of stocks in Europe, particularly in the
United Kingdom. These markets outperformed others, and our stock selections did
exceptionally well. During the year, the Fund added to its holdings in Spain and
France and reduced its stake in Belgian stocks, a market that more than met our
expectations and where selected stocks appear to be fully valued. Our largest
holding at year's end was Powergen plc, a major electric utility in Britain that
also owns oil and gas interests in the North Sea.

Stocks Make Up More Than Half
of Global Assets' Portfolio
Asset Mix November 30, 1996
<TABLE>
<CAPTION>

Foreign Stocks U.S. Stocks Foreign Bonds U.S. High-Yield Bonds Cash
<S> <C> <C> <C> <C>
33.7% 23.2% 22.7% 7.6% 12.8%

</TABLE>

(Pie Chart Goes Here)

1996 annual report

7
<PAGE>

* U.S. Stocks
We focus on stocks that have strong potential to increase dividends, and in
recent months have been emphasizing global consumer growth companies in
industries such as financial services, food processing, tobacco and
pharmaceuticals. Some of our selections have enjoyed substantial price
appreciation during the year as concern over possible government regulatory
actions abated.

WE ARE ABLE TO COMPARE STOCKS TO BONDS WITHIN A COUNTRY AS WELL AS ACROSS
COUNTRIES WITH A CONSISTENT YARDSTICK.

Generally, the stocks of larger U.S. companies outperformed the stocks
of smaller companies during 1996, partly because more investors sought "quality"
businesses that have the potential to report higher earnings even if the U.S.
economy should slow. Your Fund's largest domestic stock holding was American
International Group, an insurance company we believe stands to benefit from
growth overseas.
We focus on companies that we believe are well-positioned to increase
dividends, particularly consumer growth stocks. Since 1970, according to Smith
Barney, consumer growth companies have increased dividends to a greater degree
and their stocks have generally provided greater capital appreciation potential
than the stocks of companies whose profits are tied to the cyclical fortunes of
the U.S. economy.

* Global Bonds
The Fund's holdings include high-quality foreign government and corporate bonds
managed in the same style as Global Bond Fund.
We have substantial holdings of New Zealand bonds, a country where we
believe inflation is likely to remain low and which offers the best long-term
value within the "dollar block" countries that is, those non-U.S. countries such
as New Zealand and Canada that also denominate their currency in dollars.
In Europe, we believe the bond markets providing the best value are
those in Sweden, Italy, Spain and Denmark, and have emphasized these markets in
our portfolio. Overall, we will remain focused on bonds in established markets,
although we expect to generally avoid Japanese bonds, a market we believe is
overvalued.

1996 annual report
8
<PAGE>

* High-Yield U.S. Bonds
High-yield bonds have outperformed other segments of the U.S. bond market since
November and contributed significantly to your Fund's investment income during
the year.
As U.S. economic growth has slowed, we have modestly shifted our focus
to the highest quality tier (bonds rated BB) within the high-yield market. As of
year's end, the average effective maturity of our high-yield bonds was 6.7
years, with an effective duration of 4.4 years. While companies that issue bonds
with this rating generally have a stronger ability to meet interest payments and
repay principal than those whose bonds have lower ratings, such bonds are also
more sensitive to changes in interest rates than other high-yield bonds.
During the year, our high-yield bonds provided income that contributed
to your Fund's performance. Meanwhile, high-yield bond principal values were
generally more stable than U.S. Treasury bonds with comparable maturities.
Historically, the income generated by high-yield bonds has more than
compensated many investors for the added risks that are not present in U.S.
Treasuries, which are guaranteed. We believe this pattern of outperformance by
the high-yield market has the potential to continue in 1997.

(Photo of Desk and Globes)

Outlook
In fiscal 1996, we reduced Global Assets' bond holdings in the U.S. and abroad
from 37% of net assets to 30.3% as of November 30, 1996, to more fully
participate in the capital appreciation potential of world equity markets.
While overseas bonds may provide additional capital appreciation in the
coming months, we believe that the amount of short-term potential for U.S. bonds
is not

WE ARE PLEASED WITH GLOBAL ASSETS FUND'S RESULTS, WHICH HAVE OUTPACED THE
AVERAGE OF COMPARABLE MUTUAL FUNDS FOR BOTH THE FUND'S LIFETIME AND FISCAL
1996.

nearly as robust as it was two years ago, when the Fund began operations.
During the second half of 1996, we allocated 2.2% of the Fund's net
assets to stocks in emerging markets to provide an additional element of
diversification. This may help the Fund to benefit from the potential for
above-average economic growth of regions such as the Pacific Rim.

1996 annual report
9
<PAGE>

Within Global Assets Fund, we utilize our income-oriented investment
discipline to evaluate stocks in emerging countries just as we do in established
markets.
Although two years of operation is a short time for a fund that invests
worldwide, we are pleased with Global Assets Fund's results, which have outpaced
the Lipper average of comparable mutual funds for both the Fund's lifetime and
fiscal 1996. We believe the combination of diverse asset classes can make the
Fund an attractive choice for investors who want to participate in global growth
and income opportunities.

Emerging Markets Fund

Investment Strategy
During the six months Emerging Markets Fund has been operating, we believe it
has performed relatively well in the face of lackluster short-term results
provided by many developing countries around the globe.
Since June 1996, we have been building a long-term oriented portfolio
that at the fiscal year's end included Russia's largest oil company, a Turkish
telecommunications company, South African and Thai banks, Mexican and Egyptian
cement companies and a Brazilian elevator manufacturer. Overall, we were
invested in more than 60 stocks in 27 countries. Our holdings had an average
market capitalization of more than $4 billion.
We had a greater share of Fund assets in Brazil than any other country
(7.6% of net assets) at year end. This reflected our optimism concerning
Brazil's growth prospects.
Some of our holdings trade in the U.S. as American Depository Receipts
(ADRs). ADRs are typically issued by banks who hold a certain amount of the
foreign company's stock in trust. An ADR share can represent several shares of a
foreign stock.
Owning ADRs rather than buying the underlying securities directly in a

Emerging Markets Fund: A World of Opportunity
Country/Region Allocation
(November 30, 1996)

South Africa 6.2%
Malaysia 5.9%
Czech Republic 4.0%
Greece 4.7%
China (Hong Kong) 4.7%
Other Pacific Rim (Indonesia, Australia,
South Korea, Thailand, Philippines) 15.5%
South America (Chile, Peru, Argentina,
Brazil, Uruguay, Venezuela) 23.9%
Mexico 5.7%
Other Europe (Hungary, Bosnia, Portugal) 6.5%
Russia 4.9%
Turkey/Egypt 3.3%
India 5.1%
U.S. Cash 9.6%
100%

*Hong Kong becomes part of China in June 1997
Chart reflects countries where companies that are Fund holdings have primary
operations or investments, not necessarily the markets where securities are
listed.

Compared to the Morgan Stanley Emerging Markets Index, at year's end Emerging
Markets Fund had a greater concentration of stocks in Latin America, Russia and
Eastern Europe and a lower concentration of stocks in Pacific Rim countries such
as Malaysia. We were on every continent except Antarctica.

1996 annual report
10

<PAGE>

foreign market helps your Fund in two ways. It cuts transaction costs since
trading can be more expensive in many foreign stock markets than in the U.S. and
may increase liquidity, which can help your Fund gain a better price when
selling investments.
Your Fund also owned several closed-end, single country funds such as
The India Fund and Five Arrows Chile Investment Trust as of November 30. Again,
we believe it can be more efficient for us to invest this way in certain
countries. It helps us provide additional diversification.
As we have done with International Equity Fund, we use a "value"
approach to invest in emerging markets. We believe it is important to analyze
cash flow and growth of cash flow when evaluating companies in developing
countries.
The risks of investing in emerging markets are considerably greater
than investing in established overseas markets, but we believe the potential
long-term rewards are greater as well. One should anticipate that the potential
fruits of an emerging market investment strategy employed today may not be
realized until the 21st century.

value

In recent years, many U.S. investors, with the help of their financial
advisers, have seen the benefits of allocating a portion of their investment
dollars overseas in both established and emerging markets. At Delaware, we
believe our expertise in both London and Philadelphia, two global centers of
finance and commerce for more than 250 years, gives us a unique perspective on
an ever-changing world.

ROBERT AKESTER
Delaware International Advisers Ltd.
Emerging Markets Fund

GEORGE H. BURWELL
Delaware Management Company
Global Assets Fund, U.S. Stocks

CLIVE A. GILLMORE
Delaware International Advisers Ltd.
International Equity Fund
Global Assets Fund,
Asset Allocation
and International Equities
Emerging Markets Fund

PAUL A. MATLACK
Delaware Management Company
Global Bond Fund
and Global Assets Fund,
U.S. High-Yield Bonds

IAN G. SIMS
Delaware International Advisers Ltd.
Global Bond Fund
Global Assets Fund, Foreign Bonds

December 16, 1996

1996 annual report
11
<PAGE>
Performance Summary

International Equity Fund marked its fifth anniversary on October 31, 1996, and
as you can see below, the Fund has done well relative to its peers over its
lifetime (with dividends and capital gains reinvested). During the two years
since Global Bond and Global Assets Fund have been operating, each Fund has
outperformed comparable mutual funds with dividends and capital gains
reinvested.

International Equity Fund's Lifetime Performance
Growth of a $10,000 Investment, Distributions Reinvested
October 31, 1991 to November 30, 1996
<TABLE>
<CAPTION>
International Equity Morgan Stanley Europe Australia Lipper International
Fund A and Far East Index Fund Average
<S> <C> <C> <C>
Oct. '91 $ 9,525 $10,000 $10,000
Nov. '91 $ 9,192 $ 9,536 $ 9,888
Dec-91 $ 9,630 $10,032 $10,049
Jan-92 $ 9,773 $ 9,820 $10,074
Feb-92 $ 9,735 $ 9,472 $10,070
Mar-92 $ 9,496 $ 8,849 $ 9,938
Apr-92 $ 9,982 $ 8,894 $10,031
May-92 $10,277 $ 9,491 $10,221
Jun-92 $ 9,982 $ 9,044 $10,112
Jul-92 $ 9,494 $ 8,815 $ 9,963
Aug-92 $ 9,437 $ 9,372 $10,004
Sep-92 $ 9,458 $ 9,190 $ 9,914
Oct-92 $ 9,169 $ 8,710 $ 9,783
Nov-92 $ 9,178 $ 8,795 $ 9,811
Dec-92 $ 9,489 $ 8,843 $ 9,870
Jan-93 $ 9,499 $ 8,845 $ 9,885
Feb-93 $ 9,748 $ 9,114 $ 9,996
Mar-93 $10,366 $ 9,912 $10,278
Apr-93 $10,605 $10,856 $10,541
May-93 $10,625 $11,088 $10,658
Jun-93 $10,545 $10,917 $10,539
Jul-93 $10,896 $11,301 $10,718
Aug-93 $11,356 $11,914 $11,084
Sep-93 $11,256 $11,648 $11,048
Oct-93 $11,688 $12,009 $11,325
Nov-93 $11,297 $10,962 $11,064
Dec-93 $12,165 $11,756 $11,661
Jan-94 $12,936 $12,756 $12,091
Feb-94 $12,699 $12,720 $11,934
Mar-94 $12,309 $12,174 $11,608
Apr-94 $12,824 $12,694 $11,801
May-94 $12,618 $12,624 $11,774
Jun-94 $12,463 $12,806 $11,688
Jul-94 $12,897 $12,931 $11,915
Aug-94 $13,310 $13,240 $2,166
Sep-94 $12,629 $12,826 $11,942
Oct-94 $12,939 $13,255 $12,120
Nov-94 $12,339 $12,622 $11,651
Dec-94 $12,366 $12,704 $11,559
Jan-95 $12,127 $12,219 $11,090
Feb-95 $12,235 $12,187 $11,096
Mar-95 $12,618 $12,951 $11,395
Apr-95 $12,844 $13,442 $11,706
May-95 $12,932 $12,385 $11,786
Jun-95 $12,823 $13,055 $11,782
Jul-95 $13,642 $13,871 $12,325
Aug-95 $13,292 $13,345 $12,121
Sep-95 $13,391 $13,609 $12,277
Oct-95 $13,172 $13,247 $12,053
Nov-95 $13,347 $13,619 $12,166
Dec-95 $13,790 $14,171 $12,488
Jan-96 $14,431 $14,232 $12,739
Feb-96 $14,352 $14,283 $12,789
Mar-96 $14,577 $14,590 $12,991
Apr-96 $14,972 $15,018 $13,379
May-96 $14,927 $14,744 $13,347
Jun-96 $15,073 $14,831 $13,432
Jul-96 $14,610 $14,401 $12,969
Aug-96 $15,017 $14,436 $13,104
Sep-96 $15,458 $14,823 $13,370
Oct-96 $15,741 $14,675 $13,279
Nov-96 $16,577 $15,262 $13,807
</TABLE>
Chart assumes $10,000 invested on October 31, 1991, and includes the effect of
the 4.75% sales charge and the reinvestment of all dividends and capital gains.
Performance of other classes of International Equity Fund will vary due to
differing charges and expenses. <PAGE>

performance

International Equity Fund
Average Annual Total Return Through November 30, 1996
- --------------------------------------------------------------------------------

Lifetime Five Years One Year
- --------------------------------------------------------------------------------
Class A (Est.1991) +10.45% +11.43% +18.29%
- --------------------------------------------------------------------------------
Class B (Est.1994)
Excluding sales charge +9.70% +23.38%
Including sales charge +8.49% +19.38%
- --------------------------------------------------------------------------------
Class C (Est.1995)
Excluding sales charge +22.75% +23.39%
Including sales charge +22.75% +22.39%

1996 annual report
12
<PAGE>

Global Bond Fund's Lifetime Performance
Growth of a $10,000 Investment, Distributions Reinvested
December 27, 1994 to November 30, 1996

Global Bond Salomon Brothers World Lipper World
Fund A Government Bond Index Income Fund Average
Dec-94 $ 9,525 $10,000 $10,000
Jan-95 $ 9,573 $10,210 $ 9,989
Feb-95 $ 9,744 $10,471 $10,083
Mar-95 $ 9,773 $11,093 $10,263
Apr-95 $10,004 $11,299 $10,515
May-95 $10,334 $11,616 $10,826
Jun-95 $10,334 $11,685 $10,822
Jul-95 $10,540 $11,713 $10,905
Aug-95 $10,678 $11,310 $10,882
Sep-95 $10,935 $11,562 $11,055
Oct-95 $11,155 $11,649 $11,140
Nov-95 $11,315 $11,780 $11,299
Dec-95 $11,513 $11,904 $11,520
Jan-96 $11,545 $11,756 $11,664
Feb-96 $11,545 $11,696 $11,480
Mar-96 $11,545 $11,680 $11,491
Apr-96 $11,588 $11,633 $11,589
May-96 $11,621 $11,636 $11,633
Jun-96 $11,795 $11,728 $11,729
Jul-96 $12,004 $11,953 $11,858
Aug-96 $12,169 $11,999 $11,970
Sep-96 $12,358 $12,049 $12,176
Oct-96 $12,681 $12,274 $12,389
Nov-96 $12,939 $12,436 $12,665

Chart assumes $10,000 invested on December 27, 1994, and includes the effect of
the 4.75% sales charge and the reinvestment of all dividends and capital gains.
Performance of other classes of Global Bond Fund will vary due to differing
charges and expenses.

Global Bond Fund
Average Annual Total Return through November 30, 1996
- --------------------------------------------------------------------------------
Lifetime One Year
- --------------------------------------------------------------------------------
Class A (Est.1994) +14.29% +8.92%
- --------------------------------------------------------------------------------
Class B (Est.1994)
Excluding sales charge +16.47% +13.51%
Including sales charge +14.66% +9.51%
- --------------------------------------------------------------------------------
Class C (Est.1995)
Excluding sales charge +13.07% +13.51%
Including sales charge +13.07% +12.51%

Return and share value for each Fund fluctuates so that shares, when redeemed,
may be worth more or less than their original cost. Past performance is not a
guarantee of future results. Returns for all Funds reflect reinvestment of any
distributions and any applicable sales charges as noted below. B and C Class
results excluding sales charges assume the investment was not redeemed.

Voluntary expense limitations of 0.95% are in effect for Global Bond Fund and
Global Assets Fund. There is a 1.55% expense limitation for International Equity
Fund and 1.70% for Emerging Markets Fund. Class B and C of Emerging Markets Fund
were initially offered on June 10, 1996.

Class A returns reflect the effect of the current 4.75% maximum front-end sales
charge and 12b-1 fees. Class B shares, initially offered September 6, 1994, do
not carry a front-end sales charge, but are subject to a 1% annual distribution
and service fee. They are subject to a deferred sales charge if redeemed before
the end of the sixth year. Class C shares, initially offered on November 29,
1995, have an annual 1% service and distribution fee and a 1% contingent sales
charge if redeemed within 12 months of purchase.

Institutional Class shares for each Fund, which are available without sales or
asset-based distribution charges only to certain eligible institutional
accounts, provided the following returns for the listed period ended November
30, 1996.
Lifetime Five Years One Year
International Equity Fund* +11.78% +12.79% +24.68%
Global Bond Fund** +17.60% _ +14.68%
Global Assets Fund** +20.93% _ +18.38%
Emerging Markets Fund *** -0.10% _ _

*Initially offered on November 9, 1992. Performance prior to this date is based
on Class A performance, adjusted to eliminate the sale charges, but not the
asset-based distribution charge.
**Initially offered on December 27, 1994. *** Initially offered June
10, 1996.
1996 annual report
13
<PAGE>

Global Assets Fund's Lifetime Performance
Growth of a $10,000 Investment, Distributions Reinvested
December 27, 1994 to November 30, 1996
<TABLE>
<CAPTION>

Global Assets Salomon Brothers World Morgan Stanley Lipper Global Flexible
Fund A Government Bond Index World Index Portfolio Average
<S> <C> <C> <C> <C>
Dec-94 $ 9,525 $10,000 $10,000 $10,000
Jan-95 $ 9,487 $10,210 $ 9,852 $ 9,923
Feb-95 $ 9,830 $10,471 $ 9,998 $10,037
Mar-95 $10,192 $11,093 $10,482 $10,206
Apr-95 $10,413 $11,299 $10,849 $10,399
May-95 $10,663 $11,616 $10,943 $10,585
Jun-95 $10,817 $11,685 $10,942 $10,660
Jul-95 $11,262 $11,713 $11,491 $10,935
Aug-95 $11,184 $11,310 $11,237 $10,901
Sep-95 $11,436 $11,562 $11,566 $11,056
Oct-95 $11,436 $11,649 $11,386 $10,972
Nov-95 $11,582 $11,780 $11,783 $11,135
Dec-95 $11,880 $11,904 $12,130 $11,329
Jan-96 $12,092 $11,756 $12,352 $11,514
Feb-96 $12,173 $11,696 $12,430 $11,538
Mar-96 $12,223 $11,680 $12,638 $11,622
Apr-96 $12,375 $11,633 $12,938 $11,807
May-96 $12,447 $11,636 $12,951 $11,900
Jun-96 $12,548 $11,758 $13,018 $11,906
Jul-96 $12,436 $11,953 $12,560 $11,629
Aug-96 $12,630 $11,999 $12,707 $11,824
Sep-96 $12,928 $12,046 $13,206 $12,111
Oct-96 $13,122 $12,274 $13,301 $12,213
Nov-96 $13,687 $12,436 $14,049 $12,639
</TABLE>

Unlike Global Assets Fund, the unmanaged Morgan Stanley World Index is made
up entirely of equities. One-third of the index is U.S. stocks. Only 22% of
Global Assets Fund's net assets were U.S. stocks as of November 30, 1996.

Chart assumes $10,000 invested on December 27, 1994, and includes the effect of
the 4.75% sales charge and the reinvestment of all dividends and capital gains.
Performance of other classes of Global Assets Fund will vary due to differing
charges and expenses. performance

Global Assets Fund
Average Annual Total Return through November 30, 1996
- --------------------------------------------------------------------------------
Lifetime One Year
- --------------------------------------------------------------------------------
Class A (Est.1994) +17.60% +12.59%
- --------------------------------------------------------------------------------
Class B (Est.1994)
Excluding sales charge +19.78% +17.32%
Including sales charge +18.01% +13.32%
- --------------------------------------------------------------------------------
Class C (Est.1995)
Excluding sales charge +16.74% +17.33%
Including sales charge +16.74% +16.33%

See page 13 for important additional information and institutional class
performance. Return and share value for each Fund fluctuate so that shares, when
redeemed, may be worth more or less than their original cost. Past performance
is not a guarantee of future results.

1996 annual report
14

<PAGE>

Emerging Markets Fund's Initial Performance
Growth of a $10,000 Investment, Distributions Reinvested
June 10, 1996 to November 30, 1996

Emerging Markets Lipper Emerging Morgan Stanley Emerging
Fund A Markets Fund Average Markets Index
Jun-96 $9,525 $10,000 $10,000
Jul-96 $9,117 $ 9,431 $ 9,321
Aug-96 $9,516 $ 9,682 $ 9,527
Sep-96 $9,544 $ 9,743 $ 9,609
Oct-96 $9,364 $ 9,506 $ 9,337
Nov-96 $9,496 $ 9,708 $ 9,505

Many financial professionals suggest that the performance of investments in
emerging markets should be evaluated over a period of at least seven years.
Performance of Emerging Markets Fund for the initial six-and-a-half months shown
here may not be representative of longer term results.

Chart assumes $10,000 invested on June 10, 1996, and includes the effect of the
4.75% sales charge and the reinvestment of all dividends and capital gains.
Performance of other classes of Emerging Markets Fund will vary due to differing
charges and expenses.

Emerging Markets Fund
Total Return June 10, 1996 through November 30, 1996
- --------------------------------------------------------------------------------
Lifetime
- --------------------------------------------------------------------------------
Class A (Est.1996) -5.05%
- --------------------------------------------------------------------------------
Class B (Est.1996)
Excluding sales charge -0.60%
Including sales charge -4.58%
- --------------------------------------------------------------------------------
Class C (Est.1996)
Excluding sales charge -0.60%
Including sales charge -1.59%

1996 annual report

<PAGE>
Financial Statements
Delaware Group Global & International Funds, Inc. _
International Equity Series
Statement of Net Assets
November 30, 1996

Number Market Value
of Shares (U.S. $)
-----------------------------
COMMON STOCK - 91.50%
Australia - 10.16%
Amcor .................................... 510,000 $ 3,153,034
CSR Limited .............................. 1,162,874 3,817,871
National Australia Bank .................. 390,408 4,878,347
Pacific Dunlop ........................... 864,192 1,990,315
-----------
13,839,567
-----------
Belgium - 2.11%
Electrabel ............................... 12,290 2,878,139
-----------
2,878,139
-----------
Canada - 1.41%
BC Telecom ............................... 84,079 1,924,119
-----------
1,924,119
-----------
France - 7.91%
Alcatel Alsthom .......................... 11,531 1,047,831
Campagnie de Saint Gobain ................ 26,591 3,821,979
Elf Aquitaine ............................ 44,376 3,873,664
Societe Television Francaise ............. 20,500 2,020,574
-----------
10,764,048
-----------
Germany - 5.43%
Bayer .................................... 80,090 3,216,821
Continental .............................. 119,500 2,054,252
Siemens .................................. 43,900 2,117,038
-----------
7,388,111
-----------
Hong Kong - 3.19%
Hong Kong Electric ....................... 407,000 1,305,432
Wharf Holdings ........................... 587,000 3,036,730
-----------
4,342,162
-----------
Indonesia - 1.72%
PT Bank Dagang Nasional .................. 1,137,500 1,127,801
PT Semen Gresik .......................... 400,000 1,219,618
-----------
2,347,419
-----------
Japan - 12.44%
Amano .................................... 202,000 2,288,802
Canon Electronics ........................ 141,000 2,972,333
Eisai .................................... 140,000 2,754,502
Kinki Coca-Cola Bottling ................. 183,000 2,491,437
Koito Manufacturing ...................... 58,000 419,780
Matsushita Electric ...................... 196,000 3,391,481
Senko .................................... 452,000 2,294,739
West Japan Railway ....................... 99 329,565
-----------
16,942,639
-----------
- --------
TOP 10 HOLDINGS, REPRESENTING 27.68% OF NET ASSETS, ARE PRINTED IN BLUE.

<PAGE>
Number Market Value
of Shares (U.S. $)
-----------------------------
COMMON STOCK - (Continued)

Malaysia - 1.94%
Oriental Holdings Berhad ....................... 200,000 $ 1,408,785
Sime Darby Berhad .............................. 330,000 1,234,072
-----------
2,642,857
-----------
Netherlands - 6.57%
Elsevier ....................................... 148,000 2,520,535
Koninklijke Van Ommeren ........................ 36,000 1,564,039
Royal Dutch Petroleum .......................... 9,820 1,654,206
Unilever NV-CVA ................................ 18,530 3,203,008
-----------
8,941,788
-----------
New Zealand - 3.62%
Carter Holt Harvey ............................. 717,300 1,656,236
Telecom Corp. of New Zealand ................... 619,920 3,273,634
-----------
4,929,870
-----------
Philippines - 0.80%
Philippine Long Distance Telephone
Company ADR.................................... 18,900 1,086,750
-----------
1,086,750
-----------
Singapore - 1.10%
Jardine Matheson Holdings Limited .............. 226,287 1,493,494
-----------
1,493,494
-----------
Spain - 6.20%
Banco Central Hispanoamericano SA .............. 113,452 2,822,079
Iberdrola S.A. ................................. 215,000 2,479,173
Telefonica de Espana ........................... 143,500 3,143,384
-----------
8,444,636
-----------
United Kingdom - 26.90%
Bass ........................................... 245,000 3,229,685
Blue Circle Industries ......................... 617,000 3,861,741
Boots .......................................... 347,500 3,712,646
British Airways ................................ 344,000 3,403,226
British Gas .................................... 835,000 3,069,679
Cable & Wireless ............................... 435,000 3,483,785
GKN ............................................ 182,900 3,443,490
Great Universal Stores ......................... 275,200 3,176,345
RTZ ............................................ 184,700 3,110,685
Taylor Woodrow ................................. 1,130,825 2,853,920
Unigate ........................................ 446,000 3,275,474
-----------
36,620,676
-----------
Total Common Stock (cost $102,460,048) ......... 124,586,275
-----------

1996 annual report
16

<PAGE>
International Equity Series
Statement of Net Assets (Continued)
- --------------------------------------------------------------------------------
Principal Market Value
Amount (U.S. $)
-----------------------------
REPURCHASE AGREEMENTS - 6.01%
With Chase Manhattan 5.60% 12/2/96 (dated
11/29/96, collateralized by $2,782,000 U.S. .....
Treasury Notes 6.125% due 8/31/98 market
value $2,846,860) .............................. $2,782,000 $2,782,000
With JP Morgan Securities 5.60% 12/2/96
(dated 11/29/96, collateralized by $437,000
U.S. Treasury Notes 5.75% due 10/31/00
market value $437,436 and $2,233,000
U.S. Treasury Notes 6.375% due 3/31/01
market value $2,300,659) ........................ 2,680,000 2,680,000
With PaineWebber 5.60% 12/2/96 (dated
11/29/96, collateralized by $2,719,000
U.S. Treasury Notes 6.125% due 8/31/98
market value $2,781,902) ........................ 2,725,000 2,725,000
----------
Total Repurchase Agreements
(cost $8,187,000) .............................. 8,187,000
----------

TOTAL MARKET VALUE OF SECURITIES - 97.51%
(cost $110,647,048) ........................................... 132,773,275
RECEIVABLES AND OTHER ASSETS NET OF LIABILITIES - 2.49% ......... 3,384,789
------------
NET ASSETS APPLICABLE TO 9,296,399 SHARES
($.01 PAR VALUE) OUTSTANDING - 100.00% ......................... $136,158,064
============

NET ASSET VALUE - INTERNATIONAL EQUITY SERIES A CLASS
($89,177,460 / 6,092,588 shares) .............................. $14.64
============
NET ASSET VALUE - INTERNATIONAL EQUITY SERIES B CLASS
($10,877,526 / 747,288 shares) ................................ $14.56
============
NET ASSET VALUE - INTERNATIONAL EQUITY SERIES C CLASS
($1,909,150 / 131,320 shares) ................................. $14.54
============
NET ASSET VALUE - INTERNATIONAL EQUITY SERIES
INSTITUTIONAL CLASS
($34,193,928 / 2,325,203 shares) .............................. $14.71
============
COMPONENTS OF NET ASSETS AT November 30, 1996:
Common stock, $.01 par value, 500,000,000 shares authorized
to the Fund with 50,000,000 shares allocated to International
Equity Series A Class, 25,000,000 shares allocated to
International Equity Series B Class, 25,000,000 shares allocated to
International Equity Series C Class, and 50,000,000 shares allocated to
International Equity Series Institutional Class ................ 110,719,838
Accumulated undistributed:
Net investment income .......................................... 2,985,419
Net realized gain on investments ............................... 182,113
Net unrealized appreciation of investments and foreign currencies 22,270,694
------------
Total net assets ................................................ $136,158,064
============

See accompanying notes

<PAGE>

Delaware Group
Global & International Funds, Inc. _
Global Assets Series
Statement of Net Assets
November 30, 1996

Number Market Value
of Shares (U.S. $)
-----------------------------
Common Stock - 56.91%
Australia - 3.72%
Amcor Limited ........................................ 27,500 $170,017
CSR Limited .......................................... 71,150 233,595
National Australia Bank .............................. 16,683 208,463
Pacific Dunlop Limited ............................... 12,175 28,040
Southcorp Holdings Limited ........................... 32,000 105,583
--------
745,698
--------
Belgium - 0.89%
Electrabel ........................................... 760 177,981
--------
177,981
--------
Canada - 0.29%
BC Telecom ........................................... 2,501 57,235
--------
57,235
--------
France - 2.82%
Campagnie de Saint Gobain ............................ 1,120 160,980
Elf Aquitaine ........................................ 2,896 252,797
Societe Television Francaise ......................... 1,550 152,775
--------
566,552
--------
Germany - 2.16%
Bayer ................................................ 4,400 176,726
RWE .................................................. 4,350 192,105
Siemens .............................................. 1,350 65,103
--------
433,934
--------
Hong Kong - 1.08%
Hong Kong Electric ................................... 41,500 133,109
Wharf Holdings ....................................... 16,000 82,773
--------
215,882
--------
Indonesia - 1.05%
PT Bank Dagang Nasional .............................. 150,000 148,721
PT Semen Gresik ...................................... 20,000 60,981
--------
209,702
--------
Japan - 4.38%
Canon Electronics .................................... 5,000 105,402
Chiyoda Fire and Marine .............................. 12,000 61,871
Eisai ................................................ 11,000 216,425
Hitachi .............................................. 26,000 242,073
Koito Manufacturing .................................. 3,000 21,713
Matsushita Electric .................................. 9,000 155,731
West Japan Railway ................................... 6 19,974
Yokohama Reito ....................................... 5,000 56,214
--------
879,403
--------
1996 annual report

17
<PAGE>
Global Assets Series
Statement of Net Assets (Continued)
-------------------------------------------------------------------------------
Number Market Value
of Shares (U.S. $)
-----------------------------
COMMON STOCK (Continued)
Netherlands - 2.46%
Elsevier .......................................... 9,150 $ 155,830
Koninklijke Van Ommeren ........................... 2,515 109,265
Royal Dutch Petroleum ............................. 1,360 229,096
----------
494,191
----------
New Zealand - 1.25%
Carter Holt Harvey ................................ 32,800 75,735
Telecom Corp. of New Zealand ...................... 33,100 174,792
----------
250,527
----------
Philippines - 0.54%
Philippine Long Distance Telephone Company ADR .... 1,900 109,250
----------
109,250
----------
Singapore/Malaysia - 0.90%
Jardine Matheson Holdings Limited ................. 22,627 149,338
Sime Darby Berhad ................................. 8,300 31,039
----------
180,377
----------
South Korea - 0.49%
Cho Hung Bank GDR ................................. 11,420 97,641
----------
97,641
----------
Spain - 2.10%
Banco Central Hispanoamericano SA ................. 6,135 152,606
Iberdrola S.A. .................................... 9,000 103,779
Telefonica de Espana .............................. 7,575 165,931
----------
422,316
----------
United Kingdom - 9.56%
Bass .............................................. 10,300 135,779
Blue Circle Industries ............................ 20,900 130,811
Boots ............................................. 22,100 236,114
British Airways ................................... 23,900 236,445
British Gas ....................................... 8,000 29,410
Cable & Wireless .................................. 29,000 232,252
GKN ............................................... 8,800 165,679
Glaxo Wellcome .................................... 14,320 235,694
Powergen .......................................... 28,000 273,474
RTZ ............................................... 8,650 145,682
Taylor Woodrow .................................... 38,600 97,417
----------
1,918,757
----------
United States - 23.22%
Alltel ............................................ 3,300 105,188
American Home Products ............................ 800 51,400
American International Group ...................... 1,800 207,000
Banta ............................................. 2,400 57,300
Baxter International .............................. 2,000 85,000
Chubb ............................................. 2,200 119,350
CMS Energy ........................................ 2,700 87,750
Colonial Properties Trust ......................... 1,000 26,875
Columbia/HCA Healthcare ........................... 4,400 176,000
ConAgra ........................................... 3,200 170,000
Danaher ........................................... 2,100 93,975

<PAGE>

Number Market Value
of Shares (U.S. $)
-----------------------------
COMMON STOCK (Continued)
United States (Continued)
Developers Diversified Realty .................... 1,000 $ 33,625
DiMon ............................................ 3,000 62,250
DQE .............................................. 2,500 73,750
Exxon ............................................ 900 85,163
Federal Home Loan ................................ 600 68,550
Foster Wheeler ................................... 3,200 115,600
GenCorp .......................................... 4,800 88,800
General Electric ................................. 800 83,200
General Signal Corporation ....................... 1,500 64,688
Hanna (M.A.) .................................... 3,000 63,375
Hewlett-Packard .................................. 1,200 64,650
Hillenbrand Industries ........................... 1,700 62,688
Illinova ......................................... 2,400 63,600
Kerr-McGee ....................................... 1,400 98,000
Lockheed Martin .................................. 1,100 99,688
Masco ............................................ 300 10,950
May Department Stores ............................ 2,000 97,500
Miller ........................................... 2,400 113,400
Nationwide Health Properties ..................... 2,300 51,175
Pentair Inc. ..................................... 2,600 75,400
Pharmacia & Upjohn ............................... 2,500 96,563
Philip Morris .................................... 1,800 185,625
Procter & Gamble ................................. 800 87,000
Raychem .......................................... 1,100 93,775
Reynolds & Reynolds Class A ...................... 3,400 94,350
Rite Aid ......................................... 2,000 79,250
Schering-Plough .................................. 2,600 185,250
Service International ............................ 2,200 66,275
SmithKline Beecham ............................... 2,000 137,750
Southern National ................................ 3,300 121,275
State Street Boston .............................. 2,000 135,250
Sun Communities .................................. 2,300 73,313
Teleflex ......................................... 1,400 69,300
Tompkins plc-ADR ................................. 4,200 70,875
Tyco International ............................... 3,000 164,250
Unum ............................................. 1,400 99,575
Wallace Computer Services ........................ 5,200 182,000
Witco ............................................ 2,000 60,750
----------
4,658,316
----------
Total Common Stock (cost S9,881,784) ............. 11,417,762
----------

Principal
Amount*
BONDS - 30.31%
Australia - 2.65%
Australian Government 9.500% 08/15/03 .............. A$200,000 184,279
Australian Government 10.000% 02/15/06 ............. 100,000 96,981
New South Wales International
7.000% 04/01/04 .................................. 100,000 80,665
Queensland Treasury Global 8.000% 08/14/01 ......... 100,000 84,902

1996 annual report

18
<PAGE>
Global Assets Series
Statement of Net Assets (Continued)
-------------------------------------------------------------------------------
Principal Market Value
Amount (U.S. $)
-----------------------------
BONDS (Continued)
Austrailia (Continued)
Queensland Treasury-Global 8.000% 05/14/03 ...... A$100,000 $ 84,994
-----------
531,821
-----------
Canada - 3.01%
Autobahn Schnell 8.500% 03/03/03 ................ C$ 50,000 42,191
Export-Inport Bank of Japan 7.750% 10/08/02 ..... 50,000 40,756
GMAC Canada 6.750% 12/14/01 ..................... 150,000 116,784
Government of Canada 9.000% 12/01/04 ............ 200,000 177,957
Government of Canada 10.250% 03/15/14 ........... 100,000 102,097
KFW International Finance 6.500% 12/28/01 ....... 50,000 38,882
Kingdom of Norway 8.375% 01/27/03 ............... 50,000 41,914
Ontario Hydro 10.000% 03/19/01 .................. 50,000 43,996
-----------
604,577
-----------
Denmark - 3.52%
Kingdom of Denmark 8.000% 11/15/01 .............. Dk 1,800,000 336,818
Kingdom of Denmark 8.000% 03/15/06 .............. 2,000,000 370,173
-----------
706,991
-----------
Germany - 4.11%
Bundesrepblik Deutscheland 5.750% 08/22/00 ...... Dem 50,000 34,092
Bundesrepblik Deutscheland 8.375% 05/21/01 ...... 640,000 478,258
Bundesrepblik Deutschland 6.500% 07/15/03 ....... 250,000 173,269
Baden Wurt L-Finance NV 6.625% 08/20/03 ......... 200,000 138,303
-----------
823,922
-----------
New Zealand - 3.65%
Government of New Zealand 6.500% 02/15/00 ....... NZ$260,000 183,251
Government of New Zealand 8.000% 02/15/01 ....... 180,000 133,434
Government of New Zealand 8.000% 04/15/04 ....... 350,000 262,847
Government of New Zealand 8.000% 11/15/06 ....... 200,000 152,194
-----------
731,726
-----------
Spain - 2.38%
Spanish Government 12.250% 03/25/00 ............. Sp 22,000,000 200,435
Spanish Government 10.300% 06/15/02 ............. 10,000,000 90,459
Spanish Government 10.500% 10/30/03 ............. 20,000,000 185,654
-----------
476,548
-----------
Sweden - 0.55%
Swedish Government 13.000% 06/15/01 ............. Sk 400,000 75,602
Swedish Government 9.000% 04/20/09 .............. 200,000 34,164
-----------
109,766
-----------
United Kingdom - 2.90%
Abbey National Treasury 8.000% 04/02/03 ......... Gbp 60,000 102,843
Barclays Bank 6.500% 02/16/04 ................... 70,000 110,709
Depfa Finance 7.125% 11/11/03 ................... 80,000 131,067
Glaxo Wellcome 8.750% 12/01/05 .................. 70,000 123,885
Ontario Province 6.875% 09/15/00 ................ 25,000 41,642
UK Conversion S47 Stock Guilt 9.000% 03/03/00 ... 40,000 71,359
-----------
581,505
-----------
United States - 7.54%
Abbey Healthcare 9.500% 11/01/02 ................ $ 25,000 26,188
Adelphia Communications 12.500% 05/15/02 ........ 25,000 25,188

<PAGE>

Principal Market Value
Amount (U.S. $)
-----------------------------
BONDS (Continued)
United States (Continued)
Adelphia Communications 11.875% 09/15/04 ........... $25,000 $24,688
Advanced Micor Devices
Notes 11.000% 08/01/03 ........................... 25,000 27,094
Aetna Industries 11.875% 10/01/06 .................. 25,000 26,313
AK Steel 10.750% 04/01/04 .......................... 25,000 26,938
American Safety Razor 9.875% 08/01/05 .............. 25,000 26,563
American Standard 10.875% 05/15/99 ................. 25,000 26,813
AMF GROUP 10.875% 03/15/06 ......................... 25,000 26,344
Aztar 11.000% 10/01/02 ............................ 25,000 23,000
Bell & Howell 9.250% 07/15/00 ...................... 25,000 25,438
Buckeye Cellulose 8.500% 12/15/05 .................. 25,000 24,813
California Energy 9.875% 06/30/03 .................. 25,000 26,281
**Calpine 144A 10.500% 05/15/06 ...................... 25,000 26,250
Century Communications 9.750% 02/15/02 ............. 25,000 25,375
Cinemark USA 9.625% 08/01/08 ....................... 25,000 25,313
Clark-Schwebel 10.500% 04/15/06 .................... 25,000 26,563
Commonwealth Aluminum 10.750% 10/01/06 ............. 25,000 25,625
Container Corporation of America
11.250% 05/01/04 ................................. 25,000 27,063
Core-Mark 11.375% 09/15/03 ......................... 25,000 25,500
Costilla Energy Notes 10.250% 10/01/06 ............. 25,000 25,938
Dade International 11.125% 05/01/06 ................ 25,000 27,188
Exide Corp 10.750% 12/15/02 ........................ 25,000 26,250
First Nationwide Holdings 9.125% 01/15/03 .......... 25,000 25,313
Fleming 10.625% 12/15/01 ........................... 25,000 25,250
Four M 12.000% 06/01/06 ........................... 25,000 25,813
Gaylord Container 11.500% 05/15/01 ................. 25,000 26,625
Graphic Controls 12.000% 09/15/05 .................. 25,000 27,500
Healthsouth Rehabilitation 9.500% 04/01/01 ......... 25,000 26,688
Host Mar Travel Plaza 9.500% 05/15/05 .............. 25,000 25,813
IMO Industries 11.750% 05/01/06 .................... 25,000 23,938
ISP Holdings 9.750% 02/15/02 ....................... 16,000 16,800
Jitney-Jungle Stores 12.000% 03/01/06 .............. 25,000 26,625
Jones Intercable 9.625% 03/15/02 ................... 25,000 25,844
Lifestyle Furnishings 10.875% 08/01/06 ............. 25,000 26,625
Mark IV Industries 8.750% 04/01/03 ................. 25,000 26,125
Mesa Operating 10.625% 07/01/06 .................... 25,000 27,000
MGM Grand Hotel 12.000% 05/01/02 ................... 25,000 27,125
Muzak LP/Muzak Capital 10.000% 10/01/03 ............ 25,000 25,281
NL Industries 11.750% 10/15/03 ..................... 25,000 25,688
NS Group 13.500% 07/15/03 .......................... 25,000 25,000
Owens-Illinois 11.000% 12/01/03 .................... 25,000 27,688
Pacific Lumber 10.500% 03/01/03 .................... 25,000 25,125
PMI Acquisition 10.250% 09/01/03 ................... 25,000 25,500
Primark 8.750% 10/15/00 ........................... 25,000 25,156
Ralphs Grocery 10.450% 06/15/04 .................... 25,000 26,000
Repap Wisconsin 9.250% 02/01/02 .................... 25,000 24,438
Riverwood International 10.875% 04/01/08 ........... 25,000 22,750
Rogers Cable Systems 9.625% 08/01/02 ............... 25,000 26,125
Speedy Muffler King 10.875% 10/01/06 ............... 25,000 26,563

1996 annual report
19
<PAGE>
Global Assets Series
Statement of Net Assets (Continued)
-------------------------------------------------------------------------------
Principal Market Value
Amount (U.S. $)
-----------------------------
BONDS (Continued)
United States (Continued)
Sterling Chemicals 11.750% 08/15/06 ............... $ 25,000 $ 25,656
Stone Container 11.500% 10/01/04 .................. 25,000 26,250
Teekay Shipping 8.320% 02/01/08 ................... 20,000 20,000
Tenet Healthcare 10.125% 03/01/05 ................. 25,000 27,688
Trump-Atlantic City 11.250% 05/01/06 .............. 25,000 23,500
Unisys Notes 11.750% 10/15/04 ..................... 25,000 26,188
Viacom International 10.250% 09/15/01.............. 25,000 27,281
Viridian 9.750% 04/01/03 .......................... 25,000 27,125
Westinghouse Air Brakes 9.375% 06/15/05 ........... 25,000 25,625
----------
1,514,437
----------
Total Bonds (cost $5,732,290) ..................... 6,081,293
----------

REPURCHASE AGREEMENTS - 11.49%
With Chase Manhattan 5.60% 12/2/96 (dated
11/29/96, collateralized by $784,000 U.S.
Treasury Notes 6.125% due 8/31/98 market
value $802,278) ................................. 784,000 784,000
With JP Morgan Securities 5.60% 12/2/96 (dated
11/29/96, collateralized by $122,000 U.S.
Treasury Notes 5.75% due 10/31/00 market
value $122,646 and $630,000 U.S. .................
Treasury Notes 6.375% due 3/31/01 market
value $648,720) ................................. 755,000 755,000
With Paine Webber 5.60% 12/2/96 (dated
11/29/96, collateralized by $765,000 U.S.
Treasury Notes 6.125% due 8/31/98 market
value $783,016) ................................. 767,000 767,000
----------
Total Repurchase Agreements
(cost $2,306,000) ................................ 2,306,000
-----------

TOTAL MARKET VALUE OF SECURITIES - 98.71%
(cost $17,920,074) ........................................ 19,805,055
RECEIVABLES AND OTHER ASSETS NET OF LIABILITIES - 1.29% ..... 258,421
-----------
NET ASSETS APPLICABLE TO 1,508,000 SHARES
($.01 PAR VALUE) OUTSTANDING - 100.00% ..................... $20,063,476
===========

NET ASSET VALUE - GLOBAL ASSETS SERIES A CLASS
($11,877,847 / 892,715 shares) ............................ $13.31
===========
NET ASSET VALUE - GLOBAL ASSETS SERIES B CLASS
($4,796,904 / 360,736 shares) ............................. $13.30
===========
NET ASSET VALUE - GLOBAL ASSETS SERIES C CLASS
($1,185,400 / 89,438 shares) .............................. $13.25
===========
NET ASSET VALUE - GLOBAL ASSETS SERIES
INSTITUTIONAL CLASS
($2,203,325 / 165,111 shares) ............................. $13.34
===========

<PAGE>

Market Value
(U.S. $)
----------------
COMPONENTS OF NET ASSETS AT NOVEMBER 30,1996:
Common stock, $.01 par value, 500,000,000 shares
authorized to the Fund with 50,000,000 shares
allocated to Global Assets Series A Class, 25,000,000
shares allocated to Global Assets Series B Class,
25,000,000 shares allocated to Global Assets Series
C Class, and 50,000,000 shares allocated to Global Assets
Series Institutional Class .............................. $17,865,966
Accumulated undistributed:
Net investment income ................................... 238,057
Net realized gain on investments ........................ 73,336
Net unrealized appreciation of investments
and foreign currencies ................................. 1,886,117
-----------
Total net assets ......................................... $20,063,476
===========
- -----------------------
*Principal amount is stated in the currency in which
each bond is denominated.

A$ _ Australian Dollars NZ$ _ New Zealand Dollars
Gbp _ British Pounds Sp _ Spanish Peseta
C$ _ Canadian Dollars Sk _ Swedish Kroner
Dk _ Danish Kroner $ _ U.S. Dollars
Dem _ German Deutsche Mark

**This security is exempt from registration under rule 144A of Securities Act of
1933. This security may be resold in transactions exempt from registration,
normally to qualified institutional buyers. At November 30, 1996, these
securities amounted to $26,250 or 0.13% of net assets.

See accompanying notes

Delaware Group
Global & International Funds, Inc. -
Global Bond Series
Statement of Net Assets
November 30, 1996

Principal Market Value
Amount* (U.S. $)
BONDS - 90.28%
Australia _ 15.04%
Australian Government 6.25% 03/15/99 ............. A$ 700,000 $ 568,140
Australian Government 9.50% 08/15/03 ............. 350,000 322,487
Australian Government 10.00% 02/15/06 ............ 100,000 96,981
New South Wales International 7.00% 04/01/04 ..... 300,000 241,995
Queensland Treasury 8.00% 08/14/01 ............... 250,000 212,254
Queensland Treasury 8.00% 05/14/03 ............... 250,000 212,485
----------
1,654,342
----------
Austria - 1.66%
Republic of Austria 5.625% 12/14/00 .............. Ast 1,900,000 182,903
----------
182,903
----------
Canada - 11.15%
Autobahn Schnell 8.50% 03/03/03 .................. C$ 60,000 50,630
Deutsche Bank 7.00% 01/07/04 ..................... 200,000 156,638

1996 annual report
20

<PAGE>

Global Bond Series
Statement of Net Assets (Continued)
- --------------------------------------------------------------------------------
Principal Market Value
Amount* (U.S. $)
- --------------------------------------------------------------------------------
BONDS (Continued)

Canada (Continued)
Export-Inport Bank of Japan 7.75% 10/08/02 ....... C$ 270,000 $ 220,084
General Electric Capital of Canada
7.125% 02/12/04 ................................ 80,000 63,062
Government of Canada 7.25% 06/01/03 .............. 250,000 201,898
Government of Canada 10.25% 03/15/14 ............. 100,000 102,097
KFW International Finance 6.50% 12/28/01 ......... 120,000 93,316
Kingdom of Norway 8.375% 01/27/03 ................ 120,000 100,592
Ontario Hydro 10.00% 03/19/01 .................... 270,000 237,581
----------
1,225,898
----------
Denmark - 11.02%
Kingdom of Denmark 8.00% 11/15/01 ................ Dk2,000,000 374,242
Kingdom of Denmark 8.00% 05/15/03 ................ 2,300,000 430,496
Kingdom of Denmark 8.00% 03/15/06 ................ 2,200,000 407,190
----------
1,211,928
----------
Germany - 10.34%
Baden Wurt L-Finance NV 6.625% 08/20/03 .......... Dem 75,000 51,864
Bundesrepblik Deutscheland 5.75% 08/22/00......... 80,000 54,547
Bundesrepblik Deutscheland 8.375% 05/21/01........ 490,000 366,166
Deutsche Pfandbrief & Hypotheken
5.625% 02/07/03.................................. 200,000 132,350
International Bank Reconstruction & Development
6.125% 09/27/02.................................. 600,000 411,205
Republic of Finland 5.50% 02/09/01................ 180,000 120,729
----------
1,136,861
----------
Netherlands - 1.21%
Netherlands Government 9.00% 05/15/00............. Nlg 200,000 133,233
----------
133,233
----------
New Zealand - 11.14%
Government of New Zealand 6.50% 02/15/00.......... NZ$ 200,000 140,962
Government of New Zealand 8.00% 02/15/01.......... 900,000 667,169
Government of New Zealand 8.00% 04/15/04 ......... 200,000 150,198
Government of New Zealand 8.00% 11/15/06 ......... 350,000 266,339
----------
1,224,668
----------
Spain - 8.78%
Spanish Government 12.25% 03/25/00 ............... Sp10,000,000 91,107
Spanish Government 11.30% 01/15/02 ............... 13,000,000 121,176
Spanish Government 10.30% 06/15/02 ............... 32,000,000 289,468
Spanish Government 10.50% 10/30/03 ............... 50,000,000 464,134
----------
965,885
----------
Sweden - 2.23%
Swedish Government 13.00% 06/15/01................ Sk 1,300,000 245,706
----------
245,706
----------
United Kingdom - 8.57%
Abbey National Treasury 8.00% 04/02/03............ Gbp 40,000 68,562
Barclays Bank plc 6.50% 02/16/04 ................. 50,000 79,078
Depfa Finance 7.125% 11/11/03..................... 220,000 360,434

<PAGE>
- --------------------------------------------------------------------------------
Principal Market Value
Amount* (U.S. $)
- --------------------------------------------------------------------------------
BONDS (Continued)

United Kingdom (Continued)
Glaxo Wellcome plc 8.75% 12/01/05................. Gbp 80,000 $ 141,582
Ontario Province 6.875% 09/15/00.................. 85,000 141,582
UK Conversion S47 Stock Gilt 9.00% 03/03/00....... 85,000 151,638
-----------
942,876
-----------
United States - 9.14%
U.S. Treasury Bonds 13.375% 08/15/01.............. $ 640,000 838,150
U.S. Treasury Note 7.875% 11/15/04 ............... 150,000 167,473
-----------
1,005,623
-----------
Total Bonds (cost $9,496,111)..................... 9,929,923
-----------

REPURCHASE AGREEMENTS - 6.53%
With Chase Manhattan 5.60% 12/2/96 (dated
11/29/96, collateralized by $244,000 U.S.
Treasury Notes 6.125% due 8/31/98 market
value $249,689).................................. 244,000 244,000
With JP Morgan Securities 5.60% 12/2/96 (dated
11/29/96, collateralized by $38,000 U.S.
Treasury Notes 5.75% due 10/31/00 market
value $37,816 and $196,000 U.S. Treasury
Notes 6.375% due 3/31/01 market value
$202,278) ....................................... 235,000 235,000
With PaineWebber 5.60% 12/2/96 (dated
11/29/96, collateralized by $238,000 U.S.
Treasury Notes 6.125% due 8/31/98 market
value $243,991) ................................. 239,000 239,000
-----------
Total Repurchase Agreements (cost $718,000)....... 718,000
-----------

TOTAL MARKET VALUE OF SECURITIES - 96.81%
(cost $10,214,111)............................... 10,647,923
RECEIVABLES AND OTHER ASSETS NET OF
LIABILITIES - 3.19% ............................. 351,360
-----------
NET ASSETS APPLICABLE TO 956,354 SHARES ($.01 PAR
VALUE) OUTSTANDING - 100.00% .................... $10,999,283
===========

NET ASSET VALUE - GLOBAL BOND SERIES A CLASS
($3,467,008 / 302,034 shares) ................... $11.48
======
NET ASSET VALUE - GLOBAL BOND SERIES B CLASS
($707,452 / 61,571 shares) ...................... $11.49
======
NET ASSET VALUE - GLOBAL BOND SERIES C CLASS
($117,989 / 10,313 shares)....................... $11.44
======
NET ASSET VALUE - GLOBAL BOND SERIES INSTITUTIONAL
CLASS ($6,706,834 / 582,436 shares).............. $11.52
======

21
<PAGE>
Global Bond Series
Statement of Net Assets (Continued)
- --------------------------------------------------------------------------------
Market Value
(U.S. $)
- --------------------------------------------------------------------------------

COMPONENTS OF NET ASSETS AT NOVEMBER 30, 1996:
Common stock, $.01 par value, 500,000,000 shares authorized to the
Fund with 50,000,000 shares allocated to Global Bond Series A Class,
25,000,000 shares allocated to Global Bond Series B Class,
25,000,000 shares allocated to Global Bond Series C Class, and
50,000,000 shares allocated to Global Bond Series
Institutional Class........................................... $10,502,998
Accumulated undistributed:
**Net investment income........................................ (15,486)
Net realized gain on investments............................. 41,730
Net unrealized appreciation of investments and foreign
currencies ................................................. 470,041
-----------
Total net assets .............................................. $10,999,283
===========

For Federal Income Tax purposes the Fund had an undistributed net income of
$109,211.
- -------
* Principal amount is stated in the currency in which each bond is
denominated.

A$ - Australian Dollars Nlg - Netherlands
Ast - Austrian Schillings NZ$ - New Zealand Dollars
Gbp - British Pounds Sp - Spanish Peseta
C$ - Canadian Dollars Sk - Swedish Krone
Dk - Danish Krona $ - U.S. Dollars
Dem - German Deutsche Marks

See accompanying notes

Delaware Group
Global & International Funds, Inc.-
Emerging Markets Series
Statement of Net Assets
November 30, 1996

Number Market Value
of Shares (U.S. $)
COMMON STOCK - 90.37%
Australia 0.16%
*Orogen Minerals ................................. 5,000 $ 10,740
-----------
10,740
-----------
Argentina - 3.53%
Central Puerto S.A. - Class B ................... 31,000 93,039
Transportadora de Gas del sur, S.A. - Class B.... 19,600 48,432
YPF Sociedad Anonima - ADR....................... 4,100 95,325
-----------
236,796
-----------
Brazil - 7.57%
Aracruz Celulose SA - ADR ....................... 13,300 103,075
*Centrais Electricas de Santa Catarina SA - GDR... 1,000 81,030
Companhia Energetica de Minas Gerais - ADR ...... 2,550 81,473
*Elevadores Atlas SA ............................. 6,000 64,491
*Telecommunicacoes Brasileiras SA - ADR .......... 1,200 90,900
Usinas Siderurgicas de Minas Gerais SA - ADR .... 8,700 87,609
-----------
508,578
-----------
Chile - 3.25%
Administradora de Fondos de Pensiones
Provida S.A. - ADR ............................. 2,600 51,350
*Banco BHIF - ADR ................................ 5,000 84,375
Cia. de Telecomunicaciones de Chile S.A. - ADR... 480 45,660

- --------------
TOP 10 HOLDINGS, REPRESENTING 22.80% OF NET ASSETS, ARE PRINTED IN BLUE.

<PAGE>
Emerging Markets Series
Statement of Net Assets (Continued)
- --------------------------------------------------------------------------------
Number Market Value
of Shares (U.S. $)
- --------------------------------------------------------------------------------
COMMON STOCK (Continued)
Chile (Continued
Empresa Nacional Electricidad S.A. - ADR ........ 2,250 $ 37,125
-----------
218,510
-----------
China - 1.79%
Northeast Electrical Transmission & Transformation
Machinery Manufacturing Ltd. .................. 930,000 120,279
-----------
120,279
-----------
Czech Republic - 3.99%
*Elektrarny Opatovice, a.s. ...................... 520 83,756
*Inzenyrske a Prumyslove Stavby a.s............... 9,570 97,819
*Telekomunikacni Montaze Praha a.s................ 900 86,347
-----------
267,922
-----------
Egypt - 2.30%
*Commercial International Bank - GDR ............. 3,910 58,924
*Suez Cement - GDR................................ 6,000 95,700
-----------
154,624
-----------
Germany - 0.95%
*EGIS Rt.......................................... 1,150 63,530
-----------
63,530
-----------
Greece - 4.71%
Attica Enterprises S.A........................... 15,650 106,176
Ergo Bank S.A.................................... 2,140 110,661
Helenic Bottling Company S.A..................... 3,440 99,331
-----------
316,168
-----------
Hong Kong - 2.87%
Guangdong Investments............................ 98,000 81,751
Guangdong Kelon Electric Holding................. 229,000 111,064
-----------
192,815
-----------
Hungary - 2.19%
MOL Magyar Olaj-es Gazipari Rt - GDR............. 5,350 61,258
Richter Gedeon Rt - GDR.......................... 1,550 85,638
-----------
146,896
-----------
India - 3.72%
*BSES Ltd - GDR................................... 5,000 98,750
Gujarat Ambuja Cement - GDR...................... 10,600 87,450
Tata Engineering & Locomotive Ltd. - GDR ........ 5,720 63,635
-----------
249,835
-----------
Indonesia - 6.82%
PT Bank Dagang Nasional.......................... 136,500 135,336
PT Semen Gresik.................................. 52,000 158,550
PT United Tractors............................... 77,000 164,179
-----------
458,065
-----------
Luxemburg - 1.85%
Quilmes Industrial SA - ADR...................... 12,000 124,500
-----------
124,500
-----------
Malaysia - 5.93%
Leader Universal Holdings Berhad................. 28,000 63,158
Nestle Berhad.................................... 8,000 62,683
Petronas Dagangan Berhad......................... 17,000 45,073
Public Finance Berhad............................ 47,000 84,812
Resorts World Berhad............................. 15,000 75,386
Sime Darby Berhad................................ 18,000 67,313
-----------
398,425
22 -----------

<PAGE>
Emerging Markets Series
Statement of Net Assets (Continued)
- --------------------------------------------------------------------------------
Number Market Value
of Shares (U.S. $)
- --------------------------------------------------------------------------------
COMMON STOCK (Continued)
Mexico - 5.65%
ALFA, S.A. de C.V. - Class A .................... 22,015 $ 98,381
Cemex, S.A. de C.V. - Class B.................... 20,000 72,642
*Controladora Comercial Mexicana SA de CV -
GDR ............................................ 2,000 36,000
Telefonos De Mexico SA........................... 3,120 94,770
Vitro SA - ADR................................... 14,500 77,938
-----------
379,731
-----------
Peru - 3.13%
*Banco de Credito del Peru........................ 30,618 43,850
Cementos Lima S.A................................ 6,300 89,007
Telefonica del Peru, S.A. - ADR.................. 4,000 77,500
-----------
210,357
-----------
Philippines - 2.04%
Philippine Long Distance Telephone Company
ADR.............................................. 2,380 136,850
-----------
136,850
-----------
Portugal - 2.31%
Portugal Telecom SA.............................. 5,840 154,931
-----------
154,931
-----------
Russia - 4.90%
+*Gazprom - ADR (144A)............................. 10,000 182,500
Lukoil Holding - ADR............................. 1,800 76,158
+Mosenergo - ADR (144A)........................... 2,400 70,776
-----------
329,434
-----------
South Africa - 6.23%
Amalgamated Banks of South Africa ............... 23,500 127,371
AngloAmerican Corporation of South Africa Ltd.... 2,150 122,358
Sappi Ltd........................................ 8,480 73,723
Sasol Ltd........................................ 7,700 95,154
-----------
418,606
-----------
South Korea - 2.90%
*Cho Hung Bank - GDR.............................. 9,850 84,218
Korea Electric Power - ADR ...................... 4,170 74,351
Pohang Iron & Steel Ltd.- ADR ................... 1,800 36,225
-----------
194,794
-----------
Thailand - 3.55%
Ayudhya Life Insurance........................... 24,000 93,952
Ruang Khao 2 Fund................................ 376,000 144,247
-----------
238,199
-----------
Turkey - 0.95%
Netas-Northern Eleckrik Telekomunikayson A.S..... 300,000 63,749
-----------
63,749
-----------
United Kingdom - 4.19%
Five Arrows Chile Investment Trust............... 72,000 203,040
*Zagrebacka Banka - GDR........................... 4,000 78,240
-----------
281,280
-----------
United States - 1.38%
*India Fund, (The)............................... 13,700 92,475
-----------
92,475
-----------
Venezuela - 1.51%
*Compania Anonima Nacional Telefonos de
Venezuela...................................... 4,000 101,500
-----------
101,500
-----------
Total Common Stock (cost $6,143,410) ............ 6,069,589
-----------

<PAGE>
- --------------------------------------------------------------------------------
Principal Market Value
Amount (U.S. $)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 3.86%
With Chase Manhattan 5.60% 12/2/96 (dated 11/29/96,
collateralized by $88,000 U.S. Treasury Notes
6.125% due 8/31/98 market value $90,052)......... $88,000 $ 88,000
With JP Morgan Securities 5.60% 12/2/96 (dated
11/29/96, collateralized by $14,000 U.S.
Treasury Notes 5.75% due 10/31/00 market
value $14,309 and $70,000 U.S. Treasury
Notes 6.375% due 3/31/01 market value
$72,534)......................................... 85,000 85,000
With PaineWebber 5.60% 12/2/96 (dated
11/29/96, collateralized by $86,000 U.S.
Treasury Notes 6.125% due 8/31/98 market
value $87,796)................................... 86,000 86,000
-----------
Total Repurchase Agreement (cost $259,000)....... 259,000
-----------

TOTAL MARKET VALUE OF SECURITIES - 94.23%
(cost $6,402,410)............................... 6,328,589
RECEIVABLES AND OTHER ASSETS NET OF LIABILITIES - 5.77% 387,778
-----------
NET ASSETS APPLICABLE TO 672,964 SHARES ($.01 PAR VALUE)
OUTSTANDING - 100.00%........................... $6,716,367
===========

NET ASSET VALUE - EMERGING MARKETS SERIES A CLASS
($2,518,517 / 252,595 shares)................... $9.97
===========
NET ASSET VALUE - EMERGING MARKETS SERIES B CLASS
($281,762 / 28,337 shares)...................... $9.94
===========
NET ASSET VALUE - EMERGING MARKETS SERIES C CLASS
($199,485 / 20,065 shares)...................... $9.94
===========

NET ASSET VALUE - EMERGING MARKETS SERIES INSTITUTIONAL CLASS
($3,716,603 / 371,967 shares)................... $9.99
===========

COMPONENTS OF NET ASSETS AT NOVEMBER 30, 1996:
Common stock, $.01 par value, 500,000,000 shares authorized to the
Fund with 50,000,000 shares allocated to Emerging Markets Series
A Class, 25,000,000 shares allocated to Emerging Markets Series B
Class, 25,000,000 shares allocated to Emerging Markets Series C Class,
and 50,000,000 shares allocated to Emerging Markets Series
Institutional Class............................................. 6,729,331
Accumulated undistributed:
Net investment income........................................... 9,077
Net realized gain on investments................................ 52,009
Net unrealized depreciation of investments and foreign
currencies.................................................. (74,050)
-----------
Total net assets............................................... $6,716,367
===========
- ---------------

* Non-income producing security for the year ended November 30, 1996
+ These securities are exempt from registration under rule 144A of the
Securities Act of 1933. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers. At November
30, 1996 these securities amounted to $253,276 or 3.77% of net assets.

ADR - American Depository Receipt GDR - Global Depository Receipt

See accompanying notes

23
<PAGE>

Delaware Group Global & International Funds, Inc. -
Statement of Assets and Liabilities
November 30, 1996
<TABLE>
<CAPTION>

International Global Global Emerging
Equity Assets Bond Markets
Series Series Series Series
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments at market. . . . . . . . . . . . . . . . $132,773,275 $19,805,055 $10,647,923 $6,328,589
Cash and foreign currencies. . . . . . . . . . . . . 3,232,962 81,604 -- 275,170
Dividends and interest receivable. . . . . . . . . . 608,390 211,322 269,399 23,734
Subscriptions receivable. . . . . . . . . . . . . . 317,245 140,119 77,412 71,847
Receivable for securities sold. . . . . . . . . . . 408,958 7,240 -- 228,555
Other assets. . . . . . . . . . . . . . . . . . . . 185,665 37,379 53,842 56,646
------------ ----------- ----------- ----------
Total assets. . . . . . . . . . . . . . . . . . 137,526,495 20,282,719 11,048,576 6,984,541
------------ ----------- ----------- ----------

LIABILITIES:
Liquidations payable. . . . . . . . . . . . . . . . 435,115 28,934 -- 168,778
Payable for securities purchased. . . . . . . . . . 408,924 113,118 -- --
Other accounts payable and accrued expenses. . . . . 524,392 77,191 49,293 99,396
------------ ----------- ----------- ----------
Total liabilities. . . . . . . . . . . . . . . . 1,368,431 219,243 49,293 268,174
------------ ----------- ----------- ----------

TOTAL NET ASSETS. . . . . . . . . . . . . . . . . . $136,158,064 $20,063,476 $10,999,283 $6,716,367
============ =========== =========== ==========
</TABLE>

See accompanying notes

24
<PAGE>
Delaware Group Global & International Funds, Inc.
Statement of Operations
<TABLE>
<CAPTION>
6/10/96*
to
Year Ended 11/30/96 11/30/96
------------------------------------------------------------------------
International Equity Global Assets Global Bond Emerging Markets
Series Series Series Series
------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest ................................ $ 412,003 $ 481,477 $ 328,079 $ 36,955
Dividends ............................... 3,577,928 212,588 -- 52,421
----------- ----------- ----------- -----------
3,989,931 694,065 328,079 89,376
----------- ----------- ----------- -----------
EXPENSES:
Management fees ......................... 792,625 95,908 29,065 35,197
Dividend disbursing and
transfer agent fees and expenses ....... 566,256 54,112 14,318 10,225
Distribution expense .................... 298,260 54,657 9,949 4,688
Registration fees ....................... 76,400 43,645 41,318 16,504
Custodian fees .......................... 107,995 25,480 8,304 17,033
Reports and statements to
shareholders ........................... 81,141 1,899 1,923 4,380
Professional fees ....................... 35,220 6,225 16,792 6,068
Accounting fees and salaries ............ 29,173 3,812 1,440 512
Taxes (other than taxes on income) ..... 23,714 4,950 3,495 623
Directors' fees ......................... 3,125 2,303 2,239 979
Amortization of organization and
registration expenses .................. 3,527 69,569 69,610 14,289
Other ................................... 29,341 9,204 7,404 4,115
----------- ----------- ----------- -----------
2,046,777 371,764 205,857 114,613
Less expenses absorbed by
Delaware International
Advisers Ltd. ........................... 109,455 192,824 156,537 60,739
----------- ----------- ----------- -----------
1,937,322 178,940 49,320 53,874
----------- ----------- ----------- -----------
NET INVESTMENT INCOME BEFORE
FOREIGN TAX WITHHELD ....................... 2,052,609 515,125 278,759 35,502
FOREIGN TAX WITHHELD .................... 311,155 13,160 326 3,198
----------- ----------- ----------- -----------
NET INVESTMENT INCOME ...................... 1,741,454 501,965 278,433 32,304
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND FOREIGN
CURRENCIES:
Net realized gain (loss) on:
Investment transactions ............. 186,166 74,967 41,539 52,009
Foreign currencies .................. 2,211,480 24,306 8,833 (23,227)
----------- ----------- ----------- -----------
Net realized gain ................... 2,397,646 99,273 50,372 28,782
Net unrealized appreciation
(depreciation) of investment and
foreign currencies ........................ 18,843,223 1,712,261 400,732 (74,050)
----------- ----------- ----------- -----------
<PAGE>

NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS
AND FOREIGN CURRENCIES .................... 21,240,869 1,811,534 451,104 (45,268)
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS .......... $22,982,323 $ 2,313,499 $ 729,537 $ (12,964)
=========== =========== =========== ===========
NET ASSET VALUE AND OFFERING PRICE PER SHARE -
A CLASS INTERNATIONAL EQUITY SERIES, GLOBAL
ASSETS SERIES, GLOBAL BOND SERIES AND EMERGING
MARKETS SERIES, RESPECTIVELY:
Net asset value A Class (A) ............ $ 14.64 $ 13.31 $ 11.48 $ 9.97
Sales charge (4.75% of offering
price or 4.99%, 4.96%, 4.97%
and 5.02% of the amount
invested per share for
International Equity Series,
Global Assets Series, Global Bond
Series and Emerging Market Series,
respectively)(B) ....................... .73 .66 .57 .50
----------- ----------- ----------- -----------
Offering price .......................... $ 15.37 $ 13.97 $ 12.05 $ 10.47
=========== =========== =========== ===========
</TABLE>
------------------
* Date of initial public offering.

(A) Net asset value per share, as illustrated, is the estimated amount which
would be paid upon the redemption or repurchase of shares.

(B) See Buying Shares in the current Prospectus for purchases of $100,000 or
more.
See accompanying notes
1996 annual report
25

<PAGE>
Delaware Group Global & International Fund, Inc.
Statement of Changes in Net Assets
Year Ended November 30, 1996
<TABLE>
<CAPTION>
6/10/96*
to
Year Ended 11/30/96 11/30/96
------------------------------------------------------ -----------------
International Equity Global Assets Global Bond Emerging Markets
Series Series Series Series
-------------------- ------------- ----------- ----------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income ............... $ 1,741,454 $ 501,965 $ 278,433 $ 32,304
Net realized gain on investments
and foreign currencies ............. 2,397,646 99,273 50,372 28,782
Net unrealized appreciation
(depreciation) of investments
and foreign currencies ............. 18,843,223 1,712,261 400,732 (74,050)
------------ ------------ ------------- -------------
Net increase (decrease)
in net assets resulting
from operations .................... 22,982,323 2,313,499 729,537 (12,964)
------------ ------------ ------------- -------------

DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
A Class ...................... (1,501,747) (212,365) (139,610) --
B Class ...................... (74,702) (51,947) (25,740) --
C Class ...................... (3,258) (9,120) (4,004) --
Institutional Class .......... (392,431) (75,192) (152,736) --
Net realized gain from security transactions:
A Class ...................... (745,692) (74,656) (29,823) --
B Class ...................... (44,400) (16,187) (3,812) --
C Class ...................... (178) (183) (227) --
Institutional Class .......... (141,939) (53,001) (32,515) --
------------ ------------ ------------- -------------
(2,904,347) (492,651) (388,467) --
------------ ------------ ------------- -------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold:
A Class ...................... 38,422,216 8,438,344 2,975,307 3,468,879
B Class ...................... 6,523,042 4,060,119 604,051 280,706
C Class ...................... 1,845,151 1,143,923 103,594 215,531
Institutional Class .......... 26,182,932 331,779 6,958,524 3,760,583
Net asset value of shares issued upon
reinvestment of dividends from net
investment income and net realized
gain from security transactions:
A Class ...................... 2,118,387 282,156 155,552 --
B Class ...................... 111,164 65,864 17,929 --
C Class ...................... 3,130 8,954 3,929 --
Institutional Class .......... 528,525 128,194 183,302 --
------------ ------------ ------------- -------------
75,734,547 14,459,333 11,002,188 7,725,699
------------ ------------ ------------- -------------
Cost of shares repurchased:
A Class ...................... (27,755,641) (1,051,829) (670,947) (939,883)
B Class ...................... (521,619) (348,362) (59,739) --
C Class ...................... (74,679) (64,066) (247) (14,851)
Institutional Class .......... (8,689,470) (683,685) (1,518,887) (41,634)
------------ ------------ ------------- -------------
(37,041,409) (2,147,942) (2,249,820) (996,368)
------------ ------------ ------------- -------------
Increase in net assets derived from
capital share transactions .......... 38,693,138 12,311,391 8,752,368 6,729,331
NET INCREASE IN NET ASSETS ........... 58,771,114 14,132,239 9,093,438 6,716,367
NET ASSETS:
Beginning of period .............. 77,386,950 5,931,237 1,905,845 --
------------ ------------ ------------- -------------
End of period .................... $136,158,064 $ 20,063,476 $ 10,999,283 $ 6,716,367
============ ============ ============= =============

Undistributed net investment
income ...................... $ 2,985,419 $ 238,057 $ (15,486) $ 9,077
============ ============ ============= =============
</TABLE>
- ------------------
* Date of initial public offering.

See accompanying notes

1996 annual report
26
<PAGE>
Delaware Group Global & International Fund, Inc.
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Year Ended
11/30/95 12/27/94* to 11/30/95
------------ ----------------------------
International Global Global
Equity Series Assets Series Bond Series
------------ ------------ ------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income .................. $ 1,416,220 $ 107,110 $ 89,039
Net realized gain on investments and
foreign currencies .................... 1,303,387 147,186 73,261
Net unrealized appreciation of
investments and foreign currencies .... 2,648,697 173,856 69,309
------------ ------------ ------------
Net increase in net assets resulting
from operations ....................... 5,368,304 428,152 231,609
------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
A Class .............................. (877,255) (11,935) (28,103)
B Class .............................. (15,484) (1,244) (2,188)
C Class .............................. -- -- --
Institutional Class .................. (160,418) (38,311) (46,103)
Net realized gain from security
transactions:
A Class .............................. (2,121,203) -- --
B Class .............................. (29,909) -- --
C Class .............................. -- -- --
Institutional Class .................. (303,387) -- --
------------ ------------ ------------
(3,507,656) (51,490) (76,394)
------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold:
A Class .............................. 31,339,753 3,199,375 824,105
B Class .............................. 2,885,729 613,034 110,282
C Class .............................. 5,029 5,032 5,028
Institutional Class .................. 7,333,145 1,975,200 810,404
Net asset value of shares issued upon
reinvestment of dividends from net
investment income and net realized gain
from security transactions:
A Class .............................. 2,847,228 11,496 26,638
B Class .............................. 42,926 1,244 647
C Class .............................. -- -- --
Institutional Class .................. 418,400 38,311 46,103
------------ ------------ ------------
44,872,210 5,843,692 1,823,207
------------ ------------ ------------
Cost of shares repurchased:
A Class .............................. (27,127,040) (209,669) (50,545)
B Class .............................. (148,317) (8,549) --
C Class .............................. -- -- --
Institutional Class .................. (4,043,275) (105,899) (57,032)
------------ ------------ ------------
(31,318,632) (324,117) (107,577)
------------ ------------ ------------
Increase in net assets derived from
capital share transactions ............ 13,553,578 5,519,575 1,715,630
NET INCREASE IN NET ASSETS ............. 15,414,226 5,896,237 1,870,845
NET ASSETS:
Beginning of period .................... 61,972,724 35,000 35,000
------------ ------------ ------------
End of period .......................... $ 77,386,950 $ 5,931,237 $ 1,905,845
============ ============ ============

Undistributed net investment income .... $ 1,004,623 $ 60,410 $ 19,338
============ ============ ============
</TABLE>
- ------------
* Date of initial public offering
See accompanying notes

1996 annual report
27
<PAGE>

Delaware Group Global & International Funds, Inc.
Notes to Financial Statements
November 30, 1996

Delaware Group Global & International Funds, Inc. (the "Fund") is registered as
a Maryland corporation and offers four series, The International Equity Series,
The Global Assets Series, The Global Bond Series and The Emerging Markets Series
(the "Series"). Each Series offers four classes of shares. The International
Equity Series is registered as a diversified open-end investment company and The
Global Assets Series, The Global Bond Series and The Emerging Markets Series are
registered as non-diversified open-ended investment companies under the
Investment Company Act of 1940.

The investment objective of each Series is as follows:

International Equity Series: To achieve long-term growth without undue risk to
principal by investing primarily in equities that provide the potential for
capital appreciation and income.

Global Assets Series: To achieve long-term total return by investing in
securities, including U.S. stocks and bonds foreign stocks and bonds, 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.

Global Bond Series: To provide current income consistent with the preservation
of principal by investing primarily in fixed-income securities that may also
provide the potential for capital appreciation.

Emerging Markets Series: To seek capital appreciation by investing primarily
in equity securities of issuers located or operating in emerging market
countries.

1. Significant Accounting Policies
The following accounting policies are in accordance with general accounting
principles and are consistently followed by the Fund :

Security Valuation - Securities listed on an exchange are valued at the last
quoted sales price as of 4:00 pm EST on the valuation date. Securities not
traded and securities not listed on an exchange are valued at the mean of the
last quoted bid and asked prices. Securities listed on a foreign exchange are
valued at the last quoted sale price before the time when the Fund is valued.
Money market instruments having less than 60 days to maturity are valued at
amortized cost which approximates market value.

Federal Income Taxes - Each Series intends to continue to qualify as a regulated
investment company and make the requisite distributions to shareholders.
Accordingly, no provision for federal income taxes is required in the financial
statements.

Repurchase Agreements - Each Series may invest in a pooled cash account along
with other members of the Delaware Group of Funds. The aggregated daily balance
of the pooled cash account is invested in repurchase agreements secured by
obligations of the U.S. Government. The respective collateral is held by the
Series' custodian bank until the maturity of the respective repurchase
agreements. Each repurchase agreement is 100% collateralized. However, in the
event of default or bankruptcy by the counterparty to the agreement, realization
of the collateral may be subject to legal proceedings.

Class Accounting - Investment income, common expenses and gains (losses) on
investments are allocated to the various classes of each Series on the basis of
daily net assets of each class. Distribution expenses relating to a specific
class are charged directly to that class.

Foreign Currencies - The value of all assets and liabilities denominated in
foreign currencies are translated into the U.S. dollars at the exchange rate of
such currencies against the U.S. dollar as of 3:00 pm EST. Forward foreign
currency contracts are valued at the mean between the bid and asked prices of
the contracts. Interpolated values are derived when the settlement date of the
contract is an interim date for which quotations are not available.

Other - Expenses common to all Funds within the Delaware Group of Funds are
allocated amongst the funds on the basis of average net assets. Security
transactions are recorded on the date the securities are purchase or sold (trade
date). Costs used in calculating realized gains and losses on the sale of
investment securities are those of the specific securities sold. Dividend income
is recorded on the ex-divided date and interest income is recorded on the
accrual basis. Original issue discounts are accreted to interest income over the
lives of the respective securities.

<PAGE>
Organization and registration costs are amortized over a five-and two-year
period, respectively, beginning on the date of commencement of operations. The
balance of organization and registration costs at November 30, 1996, were $56,
$17,250, $17,255 and $56,646 and amortization expense for the period ended
November 30, 1996, were $3,527, $69,569, $69,610 and $14,289 for the
International Equity Series, the Global Assets Series, the Global Bond Series
and the Emerging Markets Series, respectively.

Certain fund expenses are paid directly by brokers. The amount of these expenses
is less than 0.01% of each Series' average net assets.

2. Investment Management and Distribution Agreements
In accordance with the terms of the Investment Management Agreement, the Fund
pays Delaware International Advisers Ltd. (DIAL), the investment manager, an
annual fee which is calculated daily at the rate of 0.75% of the net assets for
the International Equity Series, the Global Assets Series and the Global Bond
Series less fees paid to the independent directors. The fee for the Emerging
Markets Series is calculated daily at the rate of 1.25% of the net assets less
fees paid to the independent directors. DIAL has entered into a sub-advisory
agreement with Delaware Management Company, Inc. (DMC) with respect to the
management of the Global Assets Series' investments in U.S. securities. DMC will
receive from DIAL 25% of the investment management fees and other expenses for
the Global Assets Series. At November 30, 1996, the International Equity Series
had a liability for Investment Management fees and other expenses payable to
DIAL for $277,797.

DIAL has elected voluntarily to waive that portion, if any, of the annual
management fees payable for the International Equity Series, the Global Assets
Series, the Global Bond Series, and the Emerging Markets Series to the extent
necessary to ensure that the annual operating expenses exclusive of taxes,
interest, brokerage commissions, extraordinary expenses and 12b-1 expenses do
not exceed 1.55% for each class of the International Equity Series 0.95% for
each class of the Global Assets and the Global Bond Series and 1.70% for each
class of the Emerging Markets Series through May 31, 1997. Total expenses
absorbed by DIAL were $109,455, $192,824, $156,537 and $60,739 for the
International Equity Series, the Global Assets Series, the Global Bond Series
and the Emerging Markets Series, respectively.

Pursuant to the Distribution Agreement, the Fund pays Delaware Distributors L.P.
(DDLP), the Distributor and an affiliate of DMC, an annual fee of 0.30% of the
average daily net assets of the A Class and 1.00% of the average daily net
assets of the B Class and the C Class. No distribution expenses are paid by the
Institutional Class. At November 30, 1996, the International Equity Series, the
Global Assets Series and the Emerging Markets Series had liabilities for
distribution fees and other expenses payable to DDLP for $6,269, $8,654 and
$61,299, respectively. For the year ended November 30, 1996, the Fund paid DDLP
$48,506, $12,820, $3,415 and $3,753 for commissions earned on sales of A Class
shares for the International Equity Series, the Global Assets Series,the Global
Bond Series and the Emerging Markets Series, respectively.

The Fund has engaged Delaware Service Company, Inc. (DSC), an affiliate of DMC
to serve as dividend disbursing and transfer agent for the Fund. For the year
ended November 30, 1996, the amounts expensed for these services were $566,256,
$54,112, $14,318 and $10,225 for the International Equity Series, the Global
Assets Series, the Global Bond Series and the Emerging Markets Series,
respectively. Effective August 19, 1996, the Fund also engaged DSC to provide
accounting services for the Fund. For the period from August 19, 1996 to
November 30, 1996, the Fund has expensed $7,708, $1,386, $747 and $145 for the
International Equity Series, the Global Assets Series, the Global Bond Series
and the Emerging Market Series, respectively, for these services. Previously
Fund personnel provided these services and the related cost were recorded in
salaries and other expense categories in the statement of operations. At
November 30, 1996, the International Equity Series and the Emerging Markets
Series had a liability for these and other expenses payable to DSC for $18,601
and $8,865, respectively.

Certain officers of the Investment Manager are officers, directors and/or
employees of the Fund. These officers, directors and employees are paid no
compensation by each Series.

1996 annual report
28
<PAGE>

Notes to Financial Statements (Continued)
3. Investments
During the year ended November 30, 1996, the Fund made purchases and sales of
investment securities other than U.S. government securities and temporary cash
investments as follows:
<TABLE>
<CAPTION>

International Global Global Emerging
Equity Assets Bond Markets
Series Series Series Series
-------------------------------------------------------
<S> <C> <C> <C> <C>
Purchases. . . . . . . . . . $41,497,141 $14,270,345 $9,324,192 $7,054,930
Sales. . . . . . . . . . . . $ 8,519,870 $ 3,635,002 $1,637,260 $ 946,111
</TABLE>

Investment securities based on cost for federal income tax purposes at November
30, 1996, are as follows:
<TABLE>
<CAPTION>

International Global Global Emerging
Equity Assets Bond Markets
Series Series Series Series
-------------------------------------------------------
<S> <C> <C> <C> <C>
Cost of Investments. . . . . . . $110,647,048 $17,920,074 $10,214,111 $6,402,410
Aggregated unrealized appreciation 26,044,331 2,025,000 455,001 358,474
Aggregate unrealized depreciation. . (3,918,104) (140,019) (21,189) (432,295)
------------ ----------- ----------- ----------
Market value of investments. . . . . $132,773,275 $19,805,054 $10,647,923 $6,328,589
------------ ----------- ----------- ----------
</TABLE>

The realized gain for financial reporting and federal income tax purposes for
the year ended November 30, 1996, were $186,166, $74,967, $41,539 and $52,009
for the International Equity Series, the Global Assets Series,the Global Bond
Series and the Emerging Market Series, respectively.
<PAGE>

4. Capital Stock
Transactions in capital stock shares were as follows:
<TABLE>
<CAPTION>

International Global Assets Global Bond Emerging
Equity Series Series Series Markets Series
----------------------------------------------------------------------------------------------
Year Year Year 12/27/94* Year 12/27/94* 6/10/96*
Ended Ended Ended to Ended to to
11/30/96 11/30/95 11/30/96 11/30/95 11/30/96 11/30/95 11/30/96
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Shares sold:
A Class ....................... 2,918,393 2,658,163 691,976 276,141 269,530 77,795 347,106
B Class ....................... 491,774 242,649 331,355 52,254 54,768 10,144 28,337
C Class ....................... 136,101 413 93,322 423 9,529 447 21,568
Institutional Class ........... 1,980,425 616,386 27,341 190,085 623,108 80,792 376,121

Shares issued upon reinvestment of
dividends from net investment
income and net realized gain from
security transactions:
A Class ....................... 169,454 249,089 23,328 1,006 14,232 2,460 --
B Class ....................... 8,890 3,744 5,419 107 2,094 59 --
C Class ....................... 237 -- 725 -- 359 -- --
Institutional Class ........... 41,888 36,453 10,755 3,408 16,587 4,320 --
---------- ---------- ---------- ---------- ---------- ---------- ----------
5,747,162 3,806,897 1,184,221 523,424 990,207 176,017 773,132
---------- ---------- ---------- ---------- ---------- ---------- ----------

Shares repurchased:
A Class ....................... (2,103,224) (2,308,726) (85,002) (18,234) (60,913) (4,570) (94,511)
B Class ....................... (39,613) (12,563) (27,670) (729) (5,494) -- --
C Class ....................... (5,431) -- (5,032) -- (23) -- (1,503)
Institutional Class ........... (649,384) (336,513) (56,667) (9,811) (136,850) (5,521) (4,154)
---------- ---------- ---------- ---------- ---------- ---------- ----------
(2,797,652) (2,657,802) (174,371) (28,774) (203,280) (10,091) (100,168)
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net increase .................... 2,949,510 1,149,095 1,009,850 494,650 786,927 165,926 672,964
========== ========== ========== ========== ========== ========== ==========
- ------------------
* Date of initial public offering
</TABLE>
1996 annual report
29

<PAGE>

Notes to Financial Statements (Continued)

4. Capital Stock (Continued)
The International Equity Series declared distributions from net realized gains
on security transactions in the amount of $0.020 per share for all Classes. In
addition, the Series declared dividends from net investment income in the amount
of $0.345, $0.280, $0.280 and $0.385 per share for the International Equity
Series A Class, International Equity Series B Class, International Equity Series
C and International Equity Series Institutional Class, respectively, payable on
December 27, 1996, to shareholders of record on December 19, 1996. The
ex-dividend date was December 20, 1996.

The Global Assets Series declared distributions from net realized gains on
security transactions in the amount of $0.050 per share for all Classes. In
addition, the Series declared dividends from net investment income in the amount
of $0.250, $0.220, $0.220 and $0.285 per share for the Global Assets Series A
Class, Global Assets Series B Class, Global Assets Series C Class and Global
Assets Series Institutional Class, respectively, payable on December 27, 1996,
to shareholders of record on December 19, 1996. The ex-dividend date was
December 20, 1996.

The Global Bond Series declared distribution from net realized gains on security
transactions in the amount of $0.040 per share for all Classes. In addition, the
Series declared dividends from net investment income in the amount of $0.155,
$0.150, $0.150 and $0.190 per share for the Global Bond Series A Class, Global
Bond Series B Class, Global Bond Series C Class and Global Bond Series
Institutional Class, respectively, payable on December 27, 1996, to shareholders
of record on December 19, 1996. The ex-dividend date was December 20, 1996.

The Emerging Markets Series declared distributions from net realized gains on
security transactions in the amount of $0.075 per share for all Classes. In
addition, the Series declared dividends from net investment income in the amount
of $0.010 per share for the Emerging Markets Series A Class and $0.025 per share
for the Emerging Markets Series Institutional Class, payable on December 27,
1996 to shareholders of record on December 19, 1996. The ex-dividend date was
December 20, 1996.
<PAGE>

5. Foreign Currency Forward Contracts
The following currency forward contracts were outstanding at November 30, 1996:
<TABLE>
<CAPTION>

International Equity Contract to In Exchange Settlement Unrealized
Series Deliver For Date Gain/(Loss)
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
65,587,500 Belgian Francs $2,067,050 12/2/96 $(197)
261,808 Swedish Kroner 38,994 12/3/96 63
82,422,800 Belgian Francs 2,635,000 2/28/97 36,971
8,008,819 Deutsche Marks 5,270,000 2/28/97 35,739
8,980,080 Dutch Guilders 5,270,000 2/28/97 36,425
27,156,310 French Francs 5,270,000 2/28/97 46,088
737,421,000 Japanese Yen 6,590,000 2/28/97 29,758
--------
$184,847
========

International Equity Contract to In Exchange Settlement Unrealized
Series Purchase For Date Gain/(Loss)
- -------------------------------------------------- ------------ ------------ -----------
4,535,425 Japanese Yen $39,872 12/2/96 $(28)
====

Contract to In Exchange Settlement Unrealized
Global Assets Series Purchase For Date Gain/(Loss)
- -------------------------------------------------- ------------ ------------ -----------

362,862 Belgian Francs $11,450 12/02/96 $13
5,224 Canadian Dollars 3,873 12/02/96 4
905 Deutsche Mark 590 12/02/96 2
13,797 Swedish Kroner 2,058 12/02/96 6
--------
$25
========
Contract to In Exchange Settlement Unrealized
Global Assets Series Deliver For Date Gain/(Loss)
- -------------------------------------------------- ------------ ------------ -----------

1,960,000 Austrian Schillings $186,489 2/28/97 $4,585
1,735,000 Deutsche Marks 1,161,312 2/28/97 27,382
230,000 Dutch Guilders 137,395 2/28/97 3,351
---------
$35,318
=========
</TABLE>

6. Concentration of Risk
The Fund may invest in high-yield fixed-income securities which carry ratings of
BB or lower by Standard & Poor's and/or Baa of lower by Moody's. Investments in
these higher yielding securities may be accompanied by a greater degree of
credit risk than higher rated securities. Additionally, lower-rated securities
may be more susceptible to adverse economic and competitive industry conditions
than investment grade securities.

With the exception of the Emerging Markets Series, each series may invest up to
10% of its total net assets in illiquid securities which include securities with
contractual restrictions on resale, securities exempt from registration under
Rule 144A of the Securities Act of 1933, as amended, and other securities which
may not be readily marketable. The Emerging Markets Series may invest up to 15%
in such securities. The relative illiquidity of some of these securities may
adversely affect the Fund's ability to dispose of such securities in a timely
manner and at a fair price when it is necessary to liquidate such securities.
These securities have been denoted in the Statement of Net Assets.

7. Lines of Credit
The International Equity Series has a committed line of credit for $1 million.
No amount was outstanding at November 30, 1996 or at any time during the last
fiscal year.

1996 annual report
30
<PAGE>

Notes to Financial Statements (Continued)

8. Financial Highlights
Selected data for each share of the Series outstanding throughout each period
were as follows:
<TABLE>
<CAPTION>

International Equity Series A Class
----------------------------------------------------------
Year Ended
11/30/96 11/30/95 11/30/94 11/30/93 11/30/92

<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period. . $12.190 $11.920 $11.250 $9.590 $9.650

Income from investment operations:
Net investment income(2). . . . . . 0.490 0.297 0.140 0.499 0.162
Net realized and unrealized gain
(loss) from security transactions 2.385 0.628 0.895 1.636 (0.172)
--------- -------- ------- -------- --------
Total from investment operations. . . . 2.875 0.925 1.035 2.135 (0.010)

Less distributions:
Dividends from net investment income (0.280) (0.185) (0.225) (0.475) (0.050)
Distribution from net realized gain
on security transactions. . . . . . (0.145) (0.470) (0.140) none none
--------- -------- ------- -------- --------
Total distributions. . . . . . . . . . (0.425) (0.655) (0.365) (0.475) (0.050)
Net asset value, end of period. . . . $14.640 $12.190 $11.920 $11.250 $9.590
========= ======== ======= ======== ========
Total return(1). . . . . . . . . . . . 24.22% 8.17% 9.23% 23.08% (0.15%)

Ratios/supplemental data:
Net assets, end of period (000 omitted) $89,177 $62,251 $53,736 $31,673 $4,604
Ratio of expenses to average net assets 1.85% 2.07% 1.56% 1.25% 1.25%
Ratio of expenses to average net assets
prior to expense limitation. . . . . . 1.95% 2.07% 1.82% 2.16% 5.67%
Ratio of net investment income
to average net assets. . . . . . . . . 3.70% 2.57% 1.22% 3.91% 2.44%
Ratio of net investment income to average
net assets prior to expense limitation 3.60% 2.57% 0.96% 3.00% (2.00%)
Portfolio Turnover. . . . . . . . . . . 9% 21% 27% 24% 12%
Average commission rate. . . . . . . . . $0.0243 NA NA NA NA
</TABLE>

- ------------------
1 Does not include maximum sales charge of 4.75% nor the 1% limited contingent
deferred sales charge that would apply in the event of certain redemptions
within 12 months of purchase.
2 The year ended November 30, 1996 per share information was based on the
average shares outstanding method.

1996 annual report
31
<PAGE>

Notes to Financial Statements (Continued)

8. Financial Highlights (Continued)
<TABLE>
<CAPTION>

International International International
Equity Series Equity Series Equity Series
B Class C Class Institutional Class
--------------------------------------------------------------------------------------------------------
Year Year 9/6/94(1) Year 11/29/95(2) Year 11/9/92(1)
Ended Ended to Ended to Ended to
11/30/96 11/30/95 11/30/94 11/30/96 11/30/95 11/30/96 11/30/95 11/30/94 11/30/93 11/30/92
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net assets value,
beginning of period... $12.130 $11.900 $12.860 $12.190 $12.240 $12.240 $11.970 $11.290 $9.590 $9.520

Income from investment
operations:
Net investment income(3) 0.398 0.278 0.036 0.400 none 0.530 0.323 0.166 0.594 0.021
Net realized and
unrealized gain
(loss) from security
transactions ......... 2.377 0.567 (0.966) 2.375 (0.050) 2.405 0.637 0.899 1.581 0.049
------- ------- ------- ------- ------- ------- ------ ------- ------ ------
Total from investment
operations 2.775 0.845 (0.930) 2.775 (0.050) 2.935 0.960 1.065 2.175 0.070

Less distributions:
Dividends from net
investment income (0.200) (0.145) (0.030) (0.280) none (0.320) (0.220) (0.245) (0.475) none
Distributions from net
realized gain on
security transactions (0.145) (0.470) none (0.145) none (0.145) (0.470) (0.140) none none
------- ------- ------- ------- ------- ------- ------ ------- ------ ------
Total distributions. . (0.345) (0.615) (0.030) (0.425) none (0.465) (0.690) (0.385) (0.475) none
Net asset value, end of
period ............... $14.560 $12.130 $11.900 $14.540 $12.190 $14.710 $12.240 $11.970 $11.290 $9.590
======= ======= ======= ======= ======= ======= ======= ======= ======= ======
Total return(4).. . . . 23.38% 7.46% (7.24%) 23.39% 5 24.68% 8.46% 9.47% 23.52% (0.15%)
Ratios/supplemental data:
Net assets, end of
period (000 omitted) $10,878 $3,471 $624 $1,909 $5 $34,194 $11,660 $7,613 $3,959 $1,120
Ratio of expenses to
average net assets .. 2.55% 2.77% 2.26% 2.55% 5 1.55% 1.77% 1.26% 0.95% 0.95%
Ratio of expenses to
average net assets prior
to expense limitation.. 2.65% 2.77% 2.52% 2.65% 5 1.65% 1.77% 1.52% 1.86% --
Ratio of net investment
income to average net
assets .............. 3.00% 1.87% 0.52% 3.00% 5 4.00% 2.87% 1.52% 4.21% 2.74%
Ratio of net investment
income to average net
assets prior to expense
limitation............ 2.90% 1.87% 0.26% 2.90% 5 3.90% 2.87% 1.26% 3.30% --
Portfolio turnover 9% 21% 27% 9% 5 9% 21% 27% 24% 12%
Average commission rate $0.0243 NA NA $0.0243 NA $0.0243 NA NA NA NA
</TABLE>
- ------------------
1 Date of initial public offering; ratios have been annualized and total return
has not been annualized.
2 Date of initial public offering.
3 The year ended November 30, 1996 per share information was based on the
average shares outstanding method.
4 Does not include contingent deferred sales charge which varies from 1% - 4%
depending upon the holding period for International Equity Series B Class and
1% for International Equity Series C Class.
5 The ratios of expenses and net investment income to average net assets,
portfolio turnover and total return have been omitted as management believes
that such ratios and total return for this relatively short period are not
meaningful.

1996 annual report
32
<PAGE>
Notes to Financial Statements (Continued)

8. Financial Highlights (Continued)
<TABLE>
<CAPTION>

Global Assets Series Global Assets Series Global Assets Series Global Assets Series
A Class B Class C Class Institutional Class
----------------------------------------------------------------------------------------------------------
Year 12/27/94(1) Year 12/27/94(1) Year 11/29/95(2) Year 12/27/94(1)
Ended to Ended to Ended to Ended to
11/30/96 11/30/95 11/30/96 11/30/95 11/30/96 11/30/95 11/30/96 11/30/95
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net assets value,
beginning of period .... $11.900 $10.000 $11.880 $10.000 $11.890 $11.940 $11.930 $10.000
Income from investment
operations:
Net investment
income ................ 0.493 0.301 0.379 0.212 0.446 none 0.567 0.473
Net realized and
unrealized gain
(loss) from security
transactions .......... 1.572 1.839 1.606 1.848 1.534 (0.050) 1.533 1.697
-------- -------- ------- ------- -------- -------- ----- -----
Total from investment
operations ............ 2.065 2.140 1.985 2.060 1.980 (0.050) 2.100 2.170
-------- -------- ------- ------- -------- -------- ----- -----
Less distributions:
Dividends from net
investment income on
security transactions.. (0.385) (0.240) (0.295) (0.180) (0.350) none (0.420) (0.240)
Distribution from
net realized gain on
security transactions . (0.270) none (0.270) none (0.270) none (0.270) none
-------- -------- ------- ------- -------- -------- ----- -----
Total distributions ..... (0.655) (0.240) (0.565) (0.180) (0.620) none (0.690) (0.240)
-------- -------- ------- ------- -------- -------- ----- -----
Net asset value, end of
period ................. $13.310 $11.900 $13.300 $11.880 $13.250 $11.890 $13.340 $11.930
-------- -------- ------- ------- -------- -------- ----- -----

Total return(3).......... 18.17% 21.48% 17.32% 20.73% 17.33% 4 18.38% 21.88%

Ratios/supplemental data:
Net assets, end of
period (000 omitted)... $11,878 $3,122 $4,796 $613 $1,185 $5 $2,203 $2,191
Ratio of expenses
to average net assets.. 1.25% 1.25% 1.95% 1.95% 1.95% 4 0.95% 0.95%
Ratio of expenses
to average net
assets prior to
expense limitation .... 2.72% 7.55% 3.42% 8.25% 3.42% 4 2.42% 7.25%
Ratio of net
investment income to
average net assets .... 4.13% 4.75% 3.43% 4.05% 3.43% 4 4.43% 5.05%
Ratio of net
investment income to
average net assets
prior to expense
limitation ............ 2.66% (1.55%) 1.96% (2.25%) 1.96% 4 2.96% (1.25%)
Portfolio turnover ..... 34% 57% 34% 57% 34% 4 34% 57%
Average commission rate $0.0271 NA $0.0271 NA $0.0271 NA $0.0271 NA
</TABLE>
- ------------------
1 Date of initial public offering; ratios have been annualized and total return
has not been annualized.
2 Date of initial public offering.
3 Does not include maximum sales charge of 4.75% for A Class nor the limited
contingent deferred sales charge which varies from 1% - 4% for B Class and 1%
for C Class depending upon the holding period.
4 The ratios of expenses and net investment income to average net assets,
portfolio turnover and total return have been omitted as management believes
that such ratios and total return for this relatively short period are not
meaningful.

1996 annual report
33
<PAGE>

Notes to Financial Statements (Continued)

8. Financial Highlights (Continued)
<TABLE>
<CAPTION>

Global Bond Series Global Bond Series Global Bond Series Global Bond Series
A Class B Class C Class Institutional Class
----------------------------------------------------------------------------------------------------------
Year 12/27/94(1) Year 12/27/94(1) Year 11/29/95(2) Year 12/27/94(1)
Ended to Ended to Ended to Ended to
11/30/96 11/30/95 11/30/96 11/30/95 11/30/96 11/30/95 11/30/96 11/30/95
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net assets value,
beginning of period .... $11.230 $10.000 $11.230 $10.000 $11.240 $11.330 $11.270 $10.000
Income from investment
operations:
Net investment
income(5).............. 0.755 0.659 0.679 0.565 0.680 none 0.788 0.782
Net realized and
unrealized gain
(loss) from security
transactions .......... 0.730 1.171 0.735 1.205 0.719 (0.036) 0.732 1.088
-------- -------- ------- ------- -------- -------- ----- -----
Total from investment
operations ............ 1.485 1.830 1.414 1.770 1.399 (0.036) 1.520 1.870

Less distributions:
Dividends from net
investment income on
security transactions.. (0.875) (0.600) (0.794) (0.540) (0.839) (0.054) (0.910) (0.600)
Distribution from
net realized gain on
security transactions . (0.360) none (0.360) none (0.360) none (0.360) none
-------- -------- ------- ------- -------- -------- ----- -----
Total distributions ..... (1.235) (0.600) (1.154) (0.540) (1.199) (0.054) (1.270) (0.600)
Net asset value, end of
period ................. $11.480 $11.230 $11.490 $11.230 $11.440 $11.240 $11.520 $11.270
======== ======== ======= ======= ======== ======== ===== =====

Total return(3).......... 14.35% 18.79% 13.51% 18.23% 13.51% 4 14.68% 19.21%

Ratios/supplemental data:
Net assets, end of
period (000 omitted)... $3,467 $889 $707 $115 $118 $5 $6,707 $897
Ratio of expenses
to average net assets.. 1.25% 1.25% 1.95% 1.95% 1.95% 4 0.95% 0.95%
Ratio of expenses
to average net
assets prior to
expense limitation .... 5.00% 12.34% 5.70% 13.04% 5.70% 4 4.70% 12.04%
Ratio of net
investment income to
average net assets .... 6.82% 7.70% 6.12% 7.00% 6.12% 4 7.12% 8.00%
Ratio of net
investment income to
average net assets
prior to expense
limitation ............ 3.07% (3.39%) 2.37% (4.09%) 2.37% 4 3.37% (3.09%)
Portfolio turnover ..... 42% 98% 42% 98% 42% 4 42% 98%
Average commission rate NA NA NA NA NA NA NA NA
</TABLE>
- ------------------
1 Date of initial public offering; ratios have been annualized and total return
has not been annualized.
2 Date of initial public offering.
3 Does not include maximum sales charge of 4.75% for A Class nor the limited
contingent deferred sales charge which varies from 1% - 4% for B Class and 1%
for C Class depending upon the holding period.
4 The ratios of expenses and net investment income to average net assets,
portfolio turnover and total return have been omitted as management believes
that such ratios and total return for this relatively short period are not
meaningful.
5 The year ended November 30, 1996 per share information was based on the
average shares outstanding method.

1996 annual report
34
<PAGE>

Notes to Financial Statements (Continued)

8. Financial Highlights (Continued)
<TABLE>
<CAPTION>

Emerging Markets Emerging Markets Emerging Markets Emerging Markets
Series Series Series Series
A Class B Class C Class Institutional Class
----------------------------------------------------------------------------
6/10/961 6/10/961 6/10/961 6/10/96(1)
to to to to
11/30/96 11/30/96 11/30/96 11/30/96

<S> <C> <C> <C> <C>
Net assets value, beginning of period. . . . $10.000 $10.000 $10.000 $10.000
Income from investment operations:
Net investment income (loss)(3) . . . . . . 0.018 (0.051) (0.051) 0.047
Net realized and unrealized (loss)
from security transactions . . . . . . (0.048) (0.009) (0.009) (0.057)
----------- -------------- ----------- ------------
Total from investment operations. . . . . . . (0.030) (0.060) (0.060) (0.010)

Less distributions:
Dividends from net investment income on
security transactions . . . . . . . . . none none none none
Distribution from net realized gain on
security transactions . . . . . . . . .. none none none none
----------- -------------- ----------- ------------
Total distributions. . . . . . . . . . . . none none none none
Net asset value, end of period. . . . . . . . $9.970 $9.940 $9.940 $9.990
=========== ============== =========== ============

Total return(2). . . . . . . . . . . . . . (0.30%) (0.60%) (0.60%) (0.10%)

Ratios/supplemental data:
Net assets, end of period (000 omitted). $2,518 $282 $199 $3,717
Ratio of expenses to average net assets. 2.00% 2.70% 2.70% 1.70%
Ratio of expenses to average net assets
prior to expense limitation . . . . . . . 4.10% 4.80% 4.80% 3.80%
Ratio of net investment income to average
net assets . . . . . . . . . . . . . . . 0.17% (0.53%) (0.53%) 0.47%
Ratio of net investment income to average
net assets prior to expense limitation . . (1.93%) (2.63%) (2.63%) (1.63%)
Portfolio turnover. . . . . . . . . . . . 36% 36% 36% 36%
Average commission rate. . . . . . . . . $0.0073 $0.0073 $0.0073 $0.0073
</TABLE>

- ------------------
1 Date of initial public offering; ratios have been annualized and total return
has not been annualized.
2 Does not include maximum sales charge of 4.75% for A Class nor the limited
contingent deferred sales charge which varies from 1% - 4% for B Class and 1%
for C Class depending upon the holding period.
3 The year ended November 30, 1996 per share information was based on the
average shares outstanding method.

1996 annual report
35
<PAGE>

Delaware Group Global & Internationl Funds, Inc.
Report of Independent Auditors

To the Shareholders and Board of Directors
Delaware Group Global & International Funds, Inc.

We have audited the accompanying statements of net assets and statements of
assets and liabilities of Delaware Group Global & International Funds, Inc.
(comprising, respectively, the International Equity Series, Global Assets
Series, Global Bond Series, and Emerging Markets Series) (the "Fund") as of
November 30, 1996, and the related statements of operations, the statements of
changes in net assets, and the financial highlights for each of the periods
indicated therein. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
November 30, 1996, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.

In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Delaware Group Global & International Funds, Inc. at November 30, 1996, and the
results of their operations, the changes in their net assets, and the financial
highlights for each of the periods indicated therein, in conformity with
generally accepted accounting principles.

Ernst & Young LLP

Philadelphia, Pennsylvania
January 13, 1997

1996 annual report
36

<PAGE>

DELAWARE GROUP OF FUNDS

FOR GROWTH OF CAPITAL
Trend Fund
Enterprise Fund
DelCap Fund
Value Fund
U.S. Growth Fund

FOR TOTAL RETURN
Devon Fund
Decatur Total Return Fund
Decatur Income Fund
Delaware Fund

FOR INTERNATIONAL DIVERSIFICATION
Emerging Markets Fund
New Pacific Fund
World Growth Fund
International Equity Fund
Global Assets Fund
Global Bond Fund

FOR CURRENT INCOME
Delchester Fund
Strategic Income Fund
Corporate Income Fund
Federal Bond Fund
U.S. Government Fund
Limited-Term Government Fund

FOR TAX-FREE CURRENT INCOME
Tax-Free Pennsylvania Fund
Tax-Free USA Fund
Tax-Free Insured Fund
Tax-Free USA Intermediate Fund

MONEY MARKET FUNDS
Delaware Cash Reserve
U.S. Government Money Fund
Tax-Free Money Fund

CLOSED-END INCOME*
Dividend and Income Fund
Global Dividend and Income Fund

* Listed on the New York Stock Exchange

funds

(PHOTO OF COMPUTER KEYBOARD)

<PAGE>

This annual report is for the information of Global & International Funds
shareholders, but it may be used with prospective investors when preceded or
accompanied by a current Prospectus for Global & International Funds, which
sets forth details about charges, expenses, investment objectives and operating
policies of each Fund. You should read the prospectus carefully before you
invest. Summary investment results are documented in the Fund's current
Statement of Additional Information. The figures in this report represent past
results which are not a guarantee of future results. Return and principal value
will fluctuate so that shares, when redeemed, may be worth more or less than
their original cost.

Board of Directors

WAYNE A. STORK
Chairman, President and Chief Executive Officer
Delaware Group of Funds
Philadelphia, PA

WALTER P. BABICH
Board Chairman, Citadel Constructors, Inc.
King of Prussia, PA

ANTHONY D. KNERR
Consultant, Anthony Knerr & Associates
New York, NY

ANN R. LEVEN
Treasurer, National Gallery of Art
Washington, DC

W. THACHER LONGSTRETH
City Councilman
Philadelphia, PA

CHARLES E. PECK
Secretary/Treasurer, Enterprise Homes, Inc.
Fredericksburg, VA

Affiliated Officers

GEORGE M. CHAMBERLAIN, JR.
Senior Vice President and Secretary,
Delaware Group of Funds
Philadelphia, PA

DAVID K. DOWNES
Senior Vice President, Chief Financial Officer and
Chief Administrative
Officer
Delaware Group of Funds
Philadelphia, PA

BRUCE D. BARTON
President and CEO,
Delaware Distributors, L.P.
Philadelphia, PA

(PHOTO OF GLOBES)

directors & officers
---------------------------------------------------------------------------

INVESTMENT MANAGER
Delaware Management Company, Inc.
Philadelphia, Pennsylvania

INTERNATIONAL AFFILIATE
Delaware International Advisers Ltd.
London, England

NATIONAL DISTRIBUTOR
Delaware Distributors, L.P.
Philadelphia, Pennsylvania

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

1818 Market Street
Philadelphia, PA 19103-3682

<PAGE>

This report must be preceded or accompanied by a current Global & International
Funds prospectus and the Delaware Group Fund Performance Update for the most
recently completed calendar quarter. For a prospectus of any other Delaware
Group fund, contact your financial adviser or Delaware Group.

(photo of globes)

FOR SHAREHOLDERS
1.800.523.1918

FOR SECURITIES DEALERS
1.800.362.7500

FOR FINANCIAL INSTITUTIONS REPRESENTATIVES ONLY
1.800.659.2265

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,
AND INVOLVE INVESTMENT RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL. SHARES
OF THE FUND ARE NOT BANK OR CREDIT UNION DEPOSITS.

Copy Rights Delaware Distributors, L.P.

DELAWARE
GROUP
---------------------
Philadelphia o London

Printed in the USA
on recycled paper

AR-034[11/96]TKO1/97
AA-63