<PAGE>
FOR GLOBAL DIVERSIFICATION
DELAWARE GROUP
Global &
International Funds
1997
Semi-Annual
Report
professional management
service and guidance
goals
INTERNATIONAL EQUITY FUND
GLOBAL BOND FUND
GLOBAL ASSETS FUND
EMERGING MARKETS FUND
DELAWARE
GROUP
- --------
<PAGE>
JUNE 20, 1997
Dear Shareholder:
Although the U.S. stock market provided a significant level of capital
appreciation since November, many international equity markets, particularly
those of emerging countries, have been equally if not even more dynamic.
We are pleased to report that each of Delaware Group's Global &
International funds has kept pace with its unmanaged benchmark for each
Fund's respective lifetime period. Our flagship International Equity Fund's
return was more than double that of the unmanaged Morgan Stanley Europe
Australia Far East Index for the six months ended May 31, 1997.
In addition, our Emerging Markets Fund has provided superb results
since it was initially offered a year ago. To analyze the additional risks of
investing in emerging markets, the Fund's portfolio managers use a
value-oriented discipline similar to that used by International Equity.
SINCE AUTUMN, WORLD EVENTS HAVE ILLUSTRATED THE COMPLEXITY AND RISKS OF OVERSEAS
MARKETS. OVERALL, DELAWARE'S CONSISTENT, INCOME AND INFLATION-SAVVY METHOD OF
EVALUATING STOCKS AND BONDS ACROSS THE WORLD WAS ESPECIALLY USEFUL IN THIS
ENVIRONMENT.
During the first half of fiscal 1997, international bond markets lost
ground, but generally fared better than the U.S. bond market, which was
negatively affected by a modest increase in short-term interest rates and
uncertainty about inflation. Our Funds' portfolio managers had the
flexibility to reallocate assets to markets which appeared undervalued.
Since autumn, world events have illustrated the complexity and risks of
overseas markets. Governments in the United Kingdom and France changed hands.
Currency fluctuations reduced the returns available to U.S. investors from the
German stock market, which performed well when measured in Deutschemarks.
Accounting issues rocked Thailand's and Japan's financial sectors. Overall,
Delaware's consistent, income and inflation-savvy method of evaluating stocks
and bonds across the world was especially useful in this environment.
Delaware's 17 investment professionals in London, together with their
colleagues here in Philadelphia, go beyond office research to keep abreast of
what's happening in established and
2 1 9 9 7 s e m i - a n n u a l r e p o r t
<PAGE>
emerging markets. During the period, our portfolio managers and analysts
traveled from the streets of Beirut to the grasslands of Kenya to evaluate
investment opportunities
More than 80 years ago, the British general Earl Kitchener advised
his troops that going overseas required courage, energy and patience. Today
these virtues are required of global investment professionals. We believe it
is our duty to you as shareholders to act with discipline and steadiness
under fire.
I encourage you to read the performance discussions for our Funds, as
well as our managers' outlooks for the world's stock and bond markets. As
always, Delaware is there for you and your financial adviser, ready to help
you build a diversified investment program with the potential to
meet your goals.
Sincerely,
/s/ Wayne A. Stork
Wayne A. Stork
CHAIRMAN, PRESIDENT AND CHIEF EXECUTIVE OFFICER
global
discipline
TOTAL RETURN
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------
DECEMBER
1, 1996
TO
MAY 31, 1997 LIFETIME*
- ----------------------------------------------------------------------------------------------------
<S> <C> <C>
International Equity A Class (Est. 10/31/91) +8.78% +12.11%
Lipper International Equity Fund Average (401/69 funds) +7.87% +10.69%
Morgan Stanley Europe Australia Far East (EAFE) Index +4.19% +8.67%
- ----------------------------------------------------------------------------------------------------
Global Bond Fund A Class (Est. 12/27/94) -2.04% +12.49%
Lipper General World Income Fund Average (140/101 funds) -0.64% +11.54%
Salomon Brothers World Government Bond Index -3.18% +7.98%
- ----------------------------------------------------------------------------------------------------
Global Assets A Class (Est. 12/27/94) +6.44% +19.08%
Lipper Global Flexible Portfolio Average (80/54 funds) +5.91% +15.33%
Morgan Stanley World Index +8.77% +17.53%
- ----------------------------------------------------------------------------------------------------
Emerging Markets Fund A Class (Est. 6/10/96) +21.40% +21.03%
Lipper Emerging Markets Fund Average (122/107 funds) +16.74% +13.63%
Morgan Stanley Emerging Markets Index +12.28% +7.09%
</TABLE>
*AVERAGE ANNUAL TOTAL RETURN FOR EACH FUND EXCEPT EMERGING MARKETS FUND,
WHICH IS EXPRESSED AS AN AGGREGATE RETURN. RESULTS ARE AT NET ASSET VALUE AND
ASSUME REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. FOR COMPLETE PERFORMANCE,
SEE PAGES 12 TO 15. MORGAN STANLEY WORLD INDEX AND THE SALOMON BROTHERS WORLD
GOVERNMENT BOND INDEX INCLUDE U.S. MARKET PERFORMANCE. ALL RETURNS STATED IN
U.S. DOLLARS. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. LIPPER
RESULTS SHOW HOW MANY FUNDS WERE IN THE AVERAGES FOR EACH RESPECTIVE PERIOD.
1 9 9 7 s e m i - a n n u a l r e p o r t 3
<PAGE>
Portfolio Managers' Review
INTERNATIONAL EQUITY FUND
INVESTMENT STRATEGY
Delaware Group's 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. We believe your Fund's
exceptionally low 4% turnover rate during the first half of fiscal 1997 was
reflective of our approach.
STRATEGIC POSITIONING
AND OUTLOOK
In general, your Fund's stock selections performed well during the first half
of fiscal 1997, even amid political change in the United Kingdom and France.
value
WE'RE OPTIMISTIC ABOUT WHAT'S HAPPENING IN LONDON BECAUSE THE NEW GOVERNMENT
OF TONY BLAIR HAS TAKEN STEPS TO MAKE THE BANK OF ENGLAND -- THE UK'S CENTRAL
BANK -- MORE INDEPENDENT, LIKE THE U.S. FEDERAL RESERVE BOARD.
We continue to have significant holdings in both countries, and our weighting
in the United Kingdom remains substantially higher than that of the unmanaged
Morgan Stanley Europe Australia Far East (EAFE) Index. (See chart on page 5).
Both the United Kingdom and France elected more liberal governments
this past spring, a response to economic change resulting from pending
European monetary union and the increasing privatization of state industries.
We're optimistic about what's happening in London because the new government
of Tony Blair has taken steps to make the Bank of England the UK's central
bank more independent, like the U.S. Federal Reserve Board. We take this as
a sign that inflation is likely to remain tame.
In Paris, we maintained holdings such as ELF AQUITAINE, a French oil
company, and COMPAGNIE DE SAINT GOBAIN each appears well-positioned because
of diverse international operations and positive internal changes.
During the fall of 1996, the EAFE Index was adversely affected by the
weak performance of the Japanese stock market. 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 has benefited from being underweighted in Japan for several
years. As of this writing, we still believe the capital appreciation
potential of the Japanese market is limited. Most of the Fund's Japanese
stocks contributed
4 1 9 9 7 s e m i - a n n u a l r e p o r t
<PAGE>
handsomely to total return during the first half. However, we were disappointed
by the negative returns of KINKI COCA-COLA BOTTLING during the period
Returns from any portfolio of international stocks are influenced by
three primary factors a fund manager's choice of stocks, circumstances in a
particular country and the relationship of the local currency to the investor's
home currency, in our case the U.S. dollar.
We see nothing on the horizon that alters our long-term positive view
of selected stocks within selected European markets. Many companies continue
to restructure operations or merge to become more competitive and increase
returns for shareholders. Through fundamental analysis of individual
companies' inflation-adjusted earnings potential, we believe we can uncover
superior long-term capital appreciation potential.
GLOBAL BOND FUND
INVESTMENT STRATEGY
Global Bond Fund relies on income potential as a key measure of value when
selecting bonds. Our research focuses on long-term factors such as inflation
and trends that can be analyzed with reasonable certainty.
The Funds' portfolio managers place great importance on quality and
select only those bonds rated "A" or better by Standard & Poor's. Generally,
the Fund's holdings will have an average maturity in the five to 10-year
range, the range we believe offers attractive income potential relative to
the risk to principal from fluctuating interest rates.
diversity
INTERNATIONAL EQUITY FUND'S COUNTRY ALLOCATION
May 31, 1997
International Morgan Stanley
Equity Fund EAFE Index
United Kingdom 27.10% 9.0%
Japan 14.20% 24.6%
Australia/New Zealand 14.90% 3.0%
Hong Kong/Other Pacific 8.70% 5.1%
Germany 7.80% 21.5%
France 7.30% 11.1%
Other Western Europe 13.80% 29.7%
1 9 9 7 s e m i - a n n u a l r e p o r t 5
<PAGE>
WE SEARCH THE WORLD FOR HIGH INCOME POTENTIAL
(Yields Measured in U.S. dollars)
New Zealand and British government bonds each provided higher yields than U.S.
Treasuries for U.S. investors as of May 31, 1997. Bonds from these countries
represented about 23% of your Fund's net assets.
<TABLE>
<CAPTION>
British Government Bonds New Zealand Government Bonds U.S. Treasuries
<S> <C> <C> <C>
3 months 6.48% 6.81% 4.95%
6 months 6.82% 5.41%
9 months
1 year 6.66% 6.95% 5.77%
2 years 6.84% 6.21%
3 years 7.18% 6.35%
4 years 7.03% 7.25%
5 years 7.05% 7.39% 6.5%
6 years 7.13%
7 years 7.14% 7.52%
8 years 7.2%
9 years 7.2%
10 years 7.19% 7.49% 6.66%
15 years 7.3%
20 years 7.27%
30 years 7.26% 6.91%
</TABLE>
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.
STRATEGIC POSITIONING
AND OUTLOOK
The first six months of fiscal 1997 has been a volatile period for U.S.
bonds. After seeing signs of strong U.S. economic growth, the Federal Reserve
Board raised its target for short-term U.S. interest rates. Domestic bond
prices subsequently slumped, with yields on 30-year U.S. Treasury securities
rising to 7.18% before settling down to 6.91% as of May 31.
Global Bond Fund's positioning which included a 13.7% weighting in U.S.
bonds helped your Fund modestly outperform the unmanaged Salomon Brothers World
Government Bond Index. Our results were negatively affected by a rise in the
dollar's value relative to some European currencies.
Your Fund's largest country weighting outside the U.S. was
New Zealand (11.8% of net assets). In our opinion, New Zealand bonds remain
attractive because the government has been operating at a budget surplus and,
unlike the United States, is actually reducing its total debt burden.
As of May 31, intermediate-term Japanese government bonds represented
8.6% of your Fund's net assets. Since November, we have become more
optimistic about Japanese bonds. A gradual economic recovery and an increase
in interest rates in Japan created what we believe were attractive yields
relative to Japan's very low 1% annual inflation rate. At the start of fiscal
1997, the Fund did not have any investments in Japan.
Another change in your Fund's portfolio is that we reduced our weighting
in several countries, including Canada, Denmark and Australia. Part of the
reason is that the income potential in these countries became less attractive.
The effect of the rising value of the dollar relative to these countries'
currencies also weighed in our decision.
6 1 9 9 7 s e m i - a n n u a l r e p o r t
<PAGE>
PORTFOLIO HIGHLIGHTS - GLOBAL BOND FUND
- --------------------------------------------------------------------------------
May 31, 1997
- --------------------------------------------------------------------------------
Yield 4.99%*
Region of Highest Concentration
Western Europe 39% of net assets
Average Effective Duration 3.9 years
Average Effective Maturity 4.7 years
Average Quality AA+
*FOR CLASS A SHARES, MEASURED ACCORDING TO SECURITIES AND EXCHANGE COMMISSION
GUIDELINES. THIRTY-DAY SEC YIELD WAS 4.52% AND 4.55% FOR CLASS B AND CLASS C
SHARES, RESPECTIVELY, AS OF MAY 31, 1997.
In the coming months, we believe investment grade bond values will
continue to be better abroad than in the U.S., even after factoring in
overseas currency fluctuations. In our opinion, consumer prices will be
relatively tame in the U.S. However, the extent to which the Federal Reserve
will have to raise interest rates to preserve a benign inflation environment
remains unclear.
IN THE COMING MONTHS, WE BELIEVE INVESTMENT GRADE BOND VALUES WILL CONTINUE
TO BE BETTER ABROAD THAN IN THE U.S., EVEN AFTER FACTORING IN OVERSEAS
CURRENCY FLUCTUATIONS.
GLOBAL ASSETS FUND
INVESTMENT STRATEGY
Global Assets Fund has provided a competitive total return since November that
reflected the Fund's ability to diversify among four asset classes in both the
U.S. and foreign markets. Nearly half the Fund's net assets were invested abroad
as of May 31. Overall, we had a 61.3% equity, 31.3% bond, 7.4% cash mix.
Using the same income-oriented approach as International Equity Fund
and Global Bond Fund, we 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 evaluating both US. and foreign stocks and bonds.
From this we can decide what countries and what asset classes offer the most
attractive risk/reward profile.
STRATEGIC POSITIONING
* INTERNATIONAL STOCKS
Following the same strategy as the International Equity Fund (see page 4),
Global Assets had a high concentration of stocks in Europe, particularly in the
United Kingdom. Stock selections there performed well despite a changing
political environment. As of May 31, the single largest foreign stock holding in
the Fund's portfolio was BANK DAGANG NASIONAL of Indonesia, amounting to 1.7% of
net assets.
1 9 9 7 s e m i - a n n u a l r e p o r t 7
<PAGE>
In the coming months, we expect to maintain our concentration on
selected European markets. To remain competitive globally as well as increase
returns for shareholders, many European companies are restructuring operations
or merging. We believe Europe continues to offer attractive, risk-adjusted
long-term capital appreciation potential relative to other parts of the
established world.
* U.S. STOCKS
In our opinion, investors will pay more for strong U.S. companies that are
expected to increase cash dividends at an above average rate. When we select
domestic stocks, we also look for dividend growth potential and other
indicators of capital appreciation potential, including:
* VALUE - attractive earnings growth at discount prices;
* CONSISTENCY - steady growth in a relatively stable industry;
* CASH FLOW - substantial resources to reinvest in the business or raise
dividends;
* CATALYSTS - improving operations or expansion by acquisition; and
* UNDISCOVERED POTENTIAL - the company's potential hasn't been recognized by
the market.
Market appreciation, especially in the consumer goods and
pharmaceutical sectors, caused the Fund's weighting in U.S. stocks to
increase during the first half of fiscal 1997. We retained our drug stock
holdings because we believe this consumer growth industry has more potential.
We believe this helps us maximize total return with only a modest increase in
risk. Compared to November, we've slightly increased our weighting in midcap
companies, adding stocks of capital goods makers in areas such as office
furniture that subsequently performed well.
Among U.S. stocks, we had a few disappointments since autumn. The
most significant of these was COLUMBIA/HCA HEALTHCARE. The company's share
price suffered after Columbia, the nation's largest hospital chain, became a
target of federal regulators who question the
GLOBAL ASSETS FUND
A Diverse Asset Mix
May 31, 1997
High Yield U.S. Bonds 12.50%
U.S. Stocks 29.1%
Foreign Bonds 18.80%
Foreign Stocks 32.3%
Cash 7.30%
8 1 9 9 7 s e m i - a n n u a l r e p o r t
<PAGE>
company's billing practices. We've retained our position because we believe the
company's business is fundamentally sound and that a settlement can be reached.
* GLOBAL BONDS
At the start of fiscal 1997, the Fund did not have any investments in Japan.
By May 31, Japanese bonds were the Fund's largest foreign country weighting
(3.7% of net assets). We sold our Danish bonds and most of our Swedish bonds
after the total return potential from these countries became more limited.
Overall, we reduced the portion of your Fund's net assets allocated to
foreign bonds from 22.7% to 18.8% during the first half.
The Fund's holdings include high quality foreign government and
corporate bonds managed in the same style as Global Bond Fund. Our change in
outlook about Japan reflects that country's gradual economic recovery as well as
attractive yields relative to Japan's annual inflation rate of less than 1%.
* HIGH-YIELD U.S. BONDS
High-yield bonds provided a higher total return than other segments of the
U.S. bond market since November, and have contributed significantly to your
Fund's investment income during the year. We increased the portion of your
Fund's net assets devoted to this sector from 7.6% at the start of fiscal
1997 to 12.5% as of May 31.
For nearly three years, high-yield bonds have generally performed
well compared to other fixed-income securities as a healthy U.S. economy
allowed corporations to meet obligations to bondholders. The default rate on
high-yield debt has remained well below 2%, according to CS First Boston.
DURING THE FIRST HALF OF FISCAL 1997, THE HIGH-YIELD BONDS IN YOUR FUND'S
PORTFOLIO ACTED LIKE A SHOCK ABSORBER OF BROAD MARKET VOLATILITY - PROVIDING
HIGH INCOME THAT OFFSET SOME OF THE EFFECTS OF THE LARGEST SHORT-TERM U.S.
STOCK MARKET CORRECTION IN SEVEN YEARS.
During the first half of fiscal 1997, the high-yield bonds in your
Fund's portfolio acted like a shock absorber of broad market volatility -
providing high income that offset some of the effects of the largest short-term
U.S. stock market correction in seven years. As of May 31, your Fund's
high-yield component had an average effective maturity of 7.2 years and an
effective duration of 4.8 years. Duration indicates the approximate percentage
of change in a bond's price given a 1% change in interest rates.
Historically, the income generated by high-yield bonds has more than
compensated investors for the additional risks. While there can be no
guarantees, we expect this pattern to continue for the balance of 1997.
1 9 9 7 s e m i - a n n u a l r e p o r t 9
<PAGE>
OUTLOOK
With the Dow Jones Industrial Average rocketing past 7,700 points in early June
and other unmanaged equity market benchmarks at historical highs, we believe
that the short-term growth potential of U.S. stocks is less robust than two and
a half years ago, when Global Assets Fund began operations.
As such, we are seeking more compelling equity values overseas.
However, we will continue to take a multi-sector worldwide approach to asset
allocation. During these ebullient times, keep in mind that since 1973, a
global mix of stocks and bonds would have provided just as high a total
return for a U.S. investor as the unmanaged S&P 500 Index with one-third LESS
risk, according to the University of Pennsylvania's Wharton School of
Business. Although the future cannot be guaranteed, balance can make sense
for investors who can appreciate the risks of international markets.
EMERGING MARKETS FUND
STRATEGIC POSITIONING
AND OUTLOOK
Prudent individual stock and country selection helped Emerging Markets Fund
provide exceptional results during the first half of fiscal 1997. We
benefited from holdings in Brazil, Russia and Greece, three of the world's
most dynamic developing markets. Capital appreciation from telephone and
economically sensitive stocks such as construction companies and banks
SINCE NOVEMBER, EMERGING MARKETS FUND HAS BENEFITED FROM HOLDINGS IN BRAZIL,
RUSSIA AND GREECE, THREE OF THE WORLD'S MOST DYNAMIC DEVELOPING MARKETS.
contributed to our returns.
One top performer was TELEBRAS, a Brazilian telecommuncations company
that nearly doubled in value. Shares of banks in Indonesia and Greece also
did well, as did a Malaysian tractor company and GUANGDONG KELON ELECTRIC,
the leading refrigerator maker in China.
EMERGING MARKETS FUND: A WORLD OF OPPORTUNITY
- --------------------------------------------------------------------------------
Country/Region Allocation
May 31, 1997
Other Pacific Rim 18.20%
Hong Kong/China 5.70%
Brazil 9.20%
Other South America 12.50%
India 5.30%
Middle East 8.80%
South Africa 5.10%
Cash 9.00%
Mexico 7.10%
Greece/Portugal 5.30%
Eastern Europe & Russia 7.80%
Singapore/Malaysia 6.00%
CHART REFLECTS SECURITIES' COUNTRY OF ORIGIN.
*INDONESIA, TAIWAN, SOUTH KOREA, PHILIPPINES, THAILAND AND AUSTRALIA
**ARGENTINA, CHILE, VENEZUELA AND PERU ***ISRAEL, LEBANON, TURKEY, EGYPT
10 1 9 9 7 s e m i - a n n u a l r e p o r t
<PAGE>
As we do with International Equity Fund, we use a value approach to
invest in emerging markets. Since many companies in emerging markets do not
provide cash dividends, we pay a lot of attention to cash flow and growth of
cash flow as measures of value
The performance of developing markets has varied widely since November,
even among countries in the same region of the world. Hungary's stock market in
Budapest did well, while a few hundred miles away in Prague in the Czech
Republic, stocks fared poorly amid a slowdown in private sector growth. Such
variation made it imperative to carefully monitor political and economic
developments as well as analyze the fundamental growth potential of specific
companies.
While many of our Pacific Rim choices enjoyed positive returns, Thailand
was a weak spot for the Fund. One bank stock in our portfolio performed well
despite that country's financial turmoil, but the balance of our holdings (about
4.1% of the Fund's net assets) did not meet expectations.
The Middle East has attracted our attention this year; we believe it
offers superior capital appreciation potential. In our opinion, gradual
settlement of hostilities is paving the way for greater economic growth. We've
committed about 9% of the Fund's net assets to a regional mix that includes
Egyptian cement and beverage firms, Israeli and Lebanese banks and Turkish
telecom equipment and truck manufacturers.
Overall, we invested in 85 stocks in 28 countries, with Brazil being our
largest single country position (9% of net assets). Such diversification is
prudent, given that the risks of investing in emerging markets are considerably
greater than those of established nations. Of course, we believe the potential
long-term rewards are greater as well.
Clive A. Gillmore
Delaware International Advisers Ltd.
INTERNATIONAL EQUITY FUND
GLOBAL ASSETS FUND, ASSET ALLOCATION
AND INTERNATIONAL EQUITIES
EMERGING MARKETS FUND
Ian G. Sims
Delaware International Advisers Ltd.
GLOBAL BOND FUND
George H. Burwell
Delaware Management Company, Inc.
GLOBAL ASSETS FUND, U.S. STOCKS
Robert Akester
Delaware International Advisers Ltd.
EMERGING MARKETS FUND
Paul A. Matlack
Delaware Management Company, Inc.
GLOBAL BOND FUND, U.S. HIGH
YIELD BONDS
June 20, 1997
1 9 9 7 s e m i - a n n u a l r e p o r t 11
<PAGE>
Performance Summary
On the following four pages, you'll see that each of Delaware Group's global and
international funds has outperformed its peers for its respective lifetime
period. In addition, International Equity Fund, Global Bond Fund and Emerging
Markets Fund have also outdistanced their unmanaged benchmarks.
INTERNATIONAL EQUITY FUND'S PERFORMANCE
October 31, 1991, to May 31, 1997
Growth of a $10,000 Investment, Distributions Reinvested
<TABLE>
<CAPTION>
International Equity Fund A Morgan Stanley Europe Australia Lipper International Fund Average
and Far East Index (69 Funds)
<S> <C> <C> <C>
Oct-91 $ 9,525 $10,000 $10,000
May-92 $10,277 $ 9,491 $10,574
May-93 $10,625 $11,086 $11,266
May-94 $12,618 $12,624 $13,317
May-95 $12,932 $13,284 $13,348
May-96 $14,927 $14,746 $15,340
May-97 $18,034 $15,905 $17,177
</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.
INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
Average Annual Total Return Through May 31, 1997
LIFETIME FIVE YEARS ONE YEAR
- --------------------------------------------------------------------------------
Class A (Est. 10/31/91)
Excluding Sales Charge +12.11% +11.90% +20.82%
Including Sales Charge +11.13% +10.82% +15.08%
- --------------------------------------------------------------------------------
Class B (Est. 9/6/94)
Excluding Sales Charge +11.09% +20.01%
Including Sales Charge +10.17% +16.01%
- --------------------------------------------------------------------------------
Class C (Est. 11/29/95)
Excluding Sales Charge +20.98% +20.04%
Including Sales Charge +20.98% +19.04%
12 1 9 9 7 s e m i - a n n u a l r e p o r t
<PAGE>
GLOBAL BOND FUND'S PERFORMANCE
December 27, 1994, to May 31, 1997
Growth of a $10,000 Investment, Distributions Reinvested
<TABLE>
<CAPTION>
Global Bond Fund A Salomon Brothers World Government Lipper General World
Bond Index Income Fund Average (101 Funds)
<S> <C> <C> <C>
Dec-94 $ 9,525 $10,000 $10,000
May-95 $10,334 $11,943 $10,955
May-96 $11,624 $11,736 $11,892
May-97 $12,676 $11,910 $12,938
</TABLE>
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 May 31, 1997
LIFETIME ONE YEAR
Class A (Est. 12/27/94)
Excluding Sales Charge +12.49% +9.08%
Including Sales Charge +10.25% +3.91%
- --------------------------------------------------------------------------------
Class B (Est. 12/27/94)
Excluding Sales Charge +11.78% +8.37%
Including Sales Charge +10.72% +4.37%
- --------------------------------------------------------------------------------
Class C (Est. 12/27/94)
Excluding Sales Charge +6.78% +8.21%
Including Sales Charge +6.78% +7.21%
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. RETURNS 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.
CLASS A SHARES HAVE A 4.75% FRONT-END SALES CHARGE AND 12B-1 FEES. VOLUNTARY
EXPENSE LIMITATIONS ARE IN EFFECT FOR EACH SERIES, 1.55% FOR THE
INTERNATIONAL EQUITY FUND, 0.95% FOR THE GLOBAL BOND FUND AND THE GLOBAL
ASSETS FUND AND 1.70% FOR THE EMERGING MARKETS FUND.
CLASS B SHARES 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 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 PERIODS ENDED MAY 31,
1997:
INSTITUTIONAL CLASSES
- --------------------------------------------------------------------------------
Average Annual Total Return
LIFETIME ONE YEAR SIX MONTHS+
- --------------------------------------------------------------------------------
International Equity Fund* +12.38% +21.17% +8.91%
Global Bond Fund** +12.86% +9.40% -1.89%
Global Assets Fund** +19.46% +17.42% +6.71%
Emerging Markets Fund*** +21.62% +21.74%
* 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.
+ AGGREGATE RETURN.
1 9 9 7 s e m i - a n n u a l r e p o r t 13
<PAGE>
GLOBAL ASSETS FUND'S PERFORMANCE
December 27, 1994, to May 31, 1997
Growth of a $10,000 Investment, Distributions Reinvested
<TABLE>
<CAPTION>
Global Assets Fund A Morgan Stanley World Index Salomon Brothers World Lipper Global Flexible Portfolio
Government Bond Index Average (54 Funds)
<S> <C> <C> <C> <C>
Dec-94 $ 9,525 $10,000 $10,000 $10,000
May-95 $10,663 $10,943 $11,943 $10,758
May-96 $12,447 $12,953 $11,736 $12,453
May-97 $14,568 $15,228 $11,910 $14,142
</TABLE>
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. THE MORGAN STANLEY WORLD INDEX IS COMPOSED
ENTIRELY OF EQUITIES.
performance
GLOBAL ASSETS FUND
- --------------------------------------------------------------------------------
Average Annual Total Return Through May 31, 1997
LIFETIME ONE YEAR
- --------------------------------------------------------------------------------
Class A (Est. 12/27/94)
Excluding Sales Charge +19.08% +17.05%
Including Sales Charge +16.71% +11.50%
- --------------------------------------------------------------------------------
Class B (Est. 12/27/94)
Excluding Sales Charge +18.27% +16.32%
Including Sales Charge +17.30% +12.32%
- --------------------------------------------------------------------------------
Class C (Est. 11/29/95)
Excluding Sales Charge +15.36% +16.19%
Including Sales Charge +15.36% +15.19%
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.
14 1 9 9 7 s e m i - a n n u a l r e p o r t
<PAGE>
EMERGING MARKETS FUND'S PERFORMANCE
June 10, 1996, to May 31, 1997
Growth of a $10,000 Investment, Distributions Reinvested
<TABLE>
<CAPTION>
Emerging Markets Fund A Morgan Stanley Emerging Markets Index Lipper Emerging Markets Fund Average (107 Funds)
<S> <C> <C> <C>
Jun-96 $ 9,525 $10,000 $10,000
Jul-96 $ 9,117 $ 9,298 $ 9,408
Aug-96 $ 9,516 $ 9,523 $ 9,663
Sep-96 $ 9,544 $ 9,592 $ 9,725
Oct-96 $ 9,364 $ 9,329 $ 9,476
Nov-96 $ 9,449 $ 9,530 $ 9,685
Dec-96 $ 9,597 $ 9,507 $ 9,853
Jan-97 $10,515 $10,147 $10,644
Feb-97 $10,955 $10,575 $11,042
Mar-97 $10,754 $10,271 $10,815
Apr-97 $11,031 $10,253 $10,882
May-97 $11,572 $10,518 $11,322
</TABLE>
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. INVESTMENTS IN EMERGING MARKETS SHOULD BE
EVALUATED OVER A MULTI-YEAR PERIOD. PERFORMANCE FOR THE 11-MONTH PERIOD SHOWN
ABOVE MAY NOT BE REPRESENTATIVE OF LONGER TERM RESULTS.
EMERGING MARKETS FUND
- --------------------------------------------------------------------------------
Aggregate Total Return Through May 31, 1997
LIFETIME
- --------------------------------------------------------------------------------
Class A (Est. 6/10/96)
Excluding Sales Charge +21.03%
Including Sales Charge +15.27%
- --------------------------------------------------------------------------------
Class B (Est. 6/10/96)
Excluding Sales Charge +20.31%
Including Sales Charge +16.31%
- --------------------------------------------------------------------------------
Class C (Est. 6/10/96)
Excluding Sales Charge +20.31%
Including Sales Charge +19.31%
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.
1 9 9 7 s e m i - a n n u a l r e p o r t 15
<PAGE>
Financial Statements
DELAWARE GROUP GLOBAL & INTERNATIONAL FUNDS, INC. --
INTERNATIONAL EQUITY SERIES
STATEMENT OF NET ASSETS --
MAY 31, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
NUMBER VALUE
OF SHARES (U.S. $)
- --------------------------------------------------------------------------------
COMMON STOCK - 93.60%
AUSTRALIA - 11.20%
Amcor .............................................. 980,000 $ 6,482,744
CSR ................................................ 1,562,874 5,727,757
National Australia Bank ............................ 462,238 6,600,469
Pacific Dunlop ..................................... 864,192 2,411,514
-----------
21,222,484
-----------
BELGIUM - 2.62%
Electrabel ......................................... 22,090 4,953,182
-----------
4,953,182
-----------
GERMANY - 7.74%
Bayer .............................................. 92,090 3,600,869
Continental ........................................ 119,500 2,735,052
Rheinisch Westfaelisches Elek ...................... 62,000 2,672,257
Siemens ............................................ 99,900 5,659,028
-----------
14,667,206
-----------
FRANCE - 7.25%
Alcatel Alsthom .................................... 11,531 1,251,780
Campagnie de Saint Gobain .......................... 41,091 5,688,348
Elf Aquitaine ...................................... 44,376 4,447,389
Societe Television Francaise ....................... 24,500 2,349,018
-----------
13,736,535
-----------
HONG KONG - 3.53%
Hong Kong Electric ................................. 632,000 2,275,640
Wharf Holdings ..................................... 987,000 4,420,068
-----------
6,695,708
-----------
INDONESIA - 1.64%
PT Bank Dagang Nasional ............................ 1,990,625 2,147,270
PT Semen Gresik .................................... 400,000 953,358
-----------
3,100,628
-----------
JAPAN - 14.24%
Amano .............................................. 194,000 2,069,333
Canon Electronics .................................. 178,000 4,516,989
Eisai .............................................. 264,000 5,314,064
Kinki Coca-Cola Bottling ........................... 183,000 2,361,290
Koito Manufacturing ................................ 269,000 2,075,638
Matsushita Electric ................................ 236,000 4,445,935
Senko .............................................. 452,000 1,850,770
West Japan Railway ................................. 1,160 4,350,623
-----------
26,984,642
-----------
MALAYSIA - 1.78%
Oriental Holdings Berhad ........................... 200,000 1,520,095
Sime Darby Berhad .................................. 566,000 1,846,876
-----------
3,366,971
-----------
<PAGE>
INTERNATIONAL EQUITY SERIES
STATEMENT OF NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
MARKET
NUMBER VALUE
OF SHARES (U.S. $)
- --------------------------------------------------------------------------------
COMMON STOCK (CONTINUED)
NETHERLANDS - 6.20%
Elsevier ........................................... 238,000 $ 4,032,006
Koninklijke Van Ommeren ............................ 36,000 1,461,843
Royal Dutch Petroleum .............................. 13,820 2,673,375
Unilever NV-CVA .................................... 18,530 3,569,034
-----------
11,736,258
-----------
NEW ZEALAND - 3.65%
Carter Holt Harvey ................................. 717,300 1,721,257
Telecom Corporation of New Zealand ................. 1,079,920 5,190,272
-----------
6,911,529
-----------
PHILIPPINES - 0.85%
Philippine Long Distance Telephone
Company ADR ........................................ 27,900 1,614,712
-----------
1,614,712
-----------
SINGAPORE - 0.81%
Jardine Matheson Holdings Limited .................. 226,287 1,538,752
-----------
1,538,752
-----------
SPAIN - 5.01%
Banco Central Hispanoamer SA ....................... 113,452 3,663,922
Iberdrola SA ....................................... 215,000 2,641,917
Telefonica de Espana ............................... 110,500 3,189,927
-----------
9,495,766
-----------
UNITED KINGDOM - 27.08%
BG ................................................. 935,000 3,137,141
Bass ............................................... 461,000 5,997,956
Blue Circle Industries ............................. 617,000 4,266,895
Boots .............................................. 422,500 4,911,292
British Airways .................................... 474,000 5,529,389
Cable & Wireless ................................... 550,000 4,502,901
*Centrica .......................................... 935,000 981,795
GKN ................................................ 282,900 4,917,712
Great Universal Stores ............................. 390,200 4,142,101
RTZ ................................................ 289,700 4,986,010
Taylor Woodrow ..................................... 1,280,825 4,339,493
Unigate ............................................ 446,000 3,600,221
-----------
51,312,906
-----------
Total Common Stock (cost $144,621,093 .............. 177,337,279
-----------
WARRANTS - 0.06%
INDONESIA - 0.06%
*PT Bank Dagang Nasional 2/14/00 ................... 284,375 115,690
-----------
Total Warrants (cost $0) .......................... 115,690
-----------
- ----------
Top 10 stock holdings, representing 30.18% of net assets are in boldface.
16 1 9 9 7 s e m i - a n n u a l r e p o r t
<PAGE>
INTERNATIONAL EQUITY SERIES
STATEMENT OF NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
MARKET
PRINCIPAL VALUE
AMOUNT (U.S. $)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 5.04%
With Chase Manhattan 5.45% 6/2/97
(dated 5/30/97, collateralized by $1,070,000
U.S. Treasury Notes 6.25% due 7/31/98
market value $1,096,076) ....................... $1,074,000 $1,074,000
With JP Morgan Securities 5.50% 6/2/97
(dated 5/30/97, collateralized by
$2,907,000 U.S. Treasury Notes 5.125%
due 2/28/98 market value $2,928,032) ............ 2,867,000 2,867,000
With PaineWebber 5.50% 6/2/97
(dated 5/30/97, collateralized by
$1,790,000 U.S. Treasury Notes
5.625% due 11/30/98 market value
$1,828,886 and $1,018,000 U.S. Treasury
Notes 5.625% due 11/30/00 market
value $1,021,315) .............................. 2,792,000 2,792,000
With Prudential Securities 5.53% 6/2/97
(dated 5/30/97, collateralized by $524,000
U.S. Treasury Notes 6.25% due 6/30/98
market value $539,303 and $2,255,000 U.S.
Treasury Notes 8.875% due 11/15/98
market value $2,350,251) ....................... 2,829,000 2,829,000
----------
Total Repurchase Agreements
(cost $9,562,000) .............................. 9,562,000
----------
- --------------------------------------------------------------------------------
MARKET
VALUE
(U.S. $)
- --------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES - 98.70%
(cost $154,183,093) .......................................... $187,014,969
RECEIVABLES AND OTHER ASSETS NET OF
LIABILITIES - 1.30% .......................................... 2,453,841
------------
NET ASSETS APPLICABLE TO 12,228,626 SHARES
($.01 PAR VALUE OUTSTANDING) - 100.00%......................... $189,468,810
============
NET ASSET VALUE - INTERNATIONAL EQUITY SERIES A CLASS
($112,908,551 / 7,289,126 shares) ............................ $15.49
======
NET ASSET VALUE - INTERNATIONAL EQUITY SERIES B CLASS
($22,203,380 / 1,438,933 shares) ............................. $15.43
======
NET ASSET VALUE - INTERNATIONAL EQUITY SERIES C CLASS
($6,003,568 / 389,548 shares) ................................ $15.41
======
NET ASSET VALUE - INTERNATIONAL EQUITY SERIES
INSTITUTIONAL CLASS
($48,353,311 / 3,111,019 shares) ............................. $15.54
======
COMPONENTS OF NET ASSETS AT May 31, 1997:
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 ............................. $153,392,065
Accumulated undistributed:
Net investment income ......................................... 2,485,701
Net realized gain on investments .............................. 784,974
Net unrealized appreciation of investments and
foreign currencies ........................................... 32,806,070
------------
Total net assets .............................................. $189,468,810
============
- ----------
*Non-income producing security.
ADR - American Depository Receipt
See accompanying notes
1 9 9 7 s e m i - a n n u a l r e p o r t 17
<PAGE>
DELAWARE GROUP GLOBAL & INTERNATIONAL FUNDS, INC. --
GLOBAL ASSETS SERIES
STATEMENT OF NET ASSETS --
MAY 31, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
NUMBER VALUE
OF SHARES (U.S. $)
- --------------------------------------------------------------------------------
COMMON STOCK - 60.76%
AUSTRALIA - 3.54%
Amcor Limited ........................................ 13,900 $ 91,949
CSR Limited .......................................... 28,650 104,999
National Australia Bank .............................. 10,588 151,190
Pacific Dunlop Limited ............................... 12,175 33,974
Southcorp Holdings Limited ........................... 32,000 119,223
--------
501,335
--------
BELGIUM - 0.90%
Electrabel ........................................... 570 127,810
--------
127,810
--------
FRANCE - 2.67%
Campagnie de Saint Gobain ............................ 1,120 155,045
Elf Aquitaine ........................................ 1,796 179,996
Societe Television Francaise ......................... 450 43,145
--------
378,186
--------
GERMANY - 2.30%
Bayer ................................................ 2,100 82,113
Continental .......................................... 3,800 86,972
RWE .................................................. 1,850 79,737
Siemens .............................................. 1,350 76,473
--------
325,295
--------
HONG KONG - 0.78%
Hong Kong Electric ................................... 11,000 39,608
Wharf Holdings ....................................... 16,000 71,653
--------
111,261
--------
INDONESIA - 1.65%
PT Bank Dagang Nasional .............................. 216,724 233,778
--------
233,778
--------
JAPAN - 5.11%
Canon Electronics .................................... 5,000 126,882
Chiyoda Fire and Marine .............................. 12,600 50,942
Eisai ................................................ 5,000 100,645
Hitachi .............................................. 10,000 106,667
Koito Manufacturing .................................. 10,000 77,161
Matsushita Electric .................................. 7,000 131,871
West Japan Railway ................................... 20 75,011
Yokohama Reito ....................................... 5,000 54,194
--------
723,373
--------
NETHERLANDS - 2.17%
Elsevier ............................................. 5,150 87,247
Koninklijke Van Ommeren .............................. 2,515 102,126
Royal Dutch Petroleum ................................ 610 118,000
--------
307,373
--------
NEW ZEALAND - 1.29%
Carter Holt Harvey Limited ........................... 32,800 78,708
Telecom Corporation of New Zealand ................... 21,600 103,813
--------
182,521
--------
<PAGE>
- --------------------------------------------------------------------------------
MARKET
NUMBER VALUE
OF SHARES (U.S. $)
- --------------------------------------------------------------------------------
COMMON STOCK (CONTINUED)
PHILIPPINES - 0.29%
Philippine Long Distance Telephone
Company ADR ......................................... 700 $ 40,513
----------
40,513
----------
MALAYSIA - 0.19%
Sime Darby Berhad .................................... 8,300 27,083
----------
27,083
----------
SINGAPORE - 0.34%
Jardine Matheson Holdings Limited .................... 7,027 47,784
----------
47,784
----------
SOUTH KOREA - 0.43%
Cho Hung Bank-GDR .................................... 11,420 61,383
----------
61,383
----------
SPAIN - 1.46%
Banco Central Hispanoamericano SA .................... 1,635 52,802
Iberdrola S.A ........................................ 6,000 73,728
Telefonica de Espana ................................. 2,775 80,109
----------
206,639
----------
UNITED KINGDOM - 9.07%
BG ................................................... 8,000 26,842
Bass ................................................. 6,600 85,871
Blue Circle Industries ............................... 13,100 90,594
Boots ................................................ 11,200 130,193
British Airways ...................................... 6,200 72,325
Cable & Wireless ..................................... 16,400 134,268
*Centrica ............................................ 8,000 8,400
GKN .................................................. 8,800 152,972
Glaxo Wellcome ....................................... 7,320 146,761
Powergen ............................................. 13,700 156,781
RTZ .................................................. 8,650 148,875
Taylor Woodrow ....................................... 38,600 130,779
----------
1,284,661
----------
UNITED STATES - 28.57%
Alltel ............................................... 2,200 72,325
American International Group ......................... 1,200 162,450
Banta ................................................ 1,600 44,200
Baxter International ................................. 1,300 68,575
BB&T Corporation ..................................... 1,300 52,000
Chubb ................................................ 1,100 67,100
CMS Energy ........................................... 1,800 60,525
Colonial Properties Trust ............................ 700 20,475
Columbia/HCA Healthcare .............................. 2,900 106,213
ConAgra .............................................. 2,300 138,288
D.R. Horton .......................................... 1,300 12,513
Danaher .............................................. 2,200 106,700
Developers Diversified Realty ........................ 700 26,075
DQE .................................................. 1,600 45,000
Ecolab ............................................... 1,900 79,088
Equifax .............................................. 2,200 68,750
- ----------
Top 10 stock holdings, representing 12.37% of net assets are in boldface.
18 1 9 9 7 s e m i - a n n u a l r e p o r t
<PAGE>
Global Assets Series
Statement of Net Assets (Continued)
- --------------------------------------------------------------------------------
MARKET
NUMBER VALUE
OF SHARES (U.S. $)
- --------------------------------------------------------------------------------
COMMON STOCK (CONTINUED)
UNITED STATES (CONTINUED)
Exxon .............................................. 1,200 $ 71,100
Federal Home Loan .................................. 1,600 52,800
Federal National Mortgage .......................... 1,800 78,525
Foster Wheeler ..................................... 2,400 93,000
GenCorp ............................................ 3,900 82,388
General Electric ................................... 1,000 60,375
Hewlett-Packard .................................... 1,100 56,650
Hillenbrand Industries ............................. 1,900 89,538
Hon Industries ..................................... 2,000 97,000
Illinova ........................................... 1,600 35,000
Johnson & Johnson .................................. 1,600 95,800
Kerr-McGee ......................................... 900 58,275
Kilroy Realty ...................................... 1,600 38,400
Lockheed Martin .................................... 700 65,538
Masco .............................................. 4,500 174,938
May Department Stores .............................. 1,300 61,263
Miller ............................................. 2,200 78,375
Motorola ........................................... 1,000 66,375
Nationwide Financial Services-A .................... 2,800 78,750
Nationwide Health Properties ....................... 1,500 32,250
Penncorp Financial Group ........................... 1,400 47,775
Pentair ............................................ 2,000 65,750
Philip Morris ...................................... 3,600 158,400
Reynolds & Reynolds Class A ........................ 4,500 105,188
Rite Aid ........................................... 2,500 116,250
Schering-Plough .................................... 1,700 154,275
SmithKline Beecham ................................. 1,300 113,750
State Street Bank .................................. 5,000 223,125
Sun Communities .................................... 1,500 48,938
Teleflex ........................................... 900 55,463
Tompkins plc-ADR ................................... 2,800 50,750
Tyco International ................................. 2,000 127,000
Unum ............................................... 900 71,213
Valspar ............................................ 400 11,200
Wallace Computer Services .......................... 3,600 100,800
----------
4,046,494
----------
Total Common Stock (cost $7,109,088) ............... 8,605,489
----------
PREFERRED STOCK - 0.38%
UNITED STATES - 0.38%
Chancellor Radio Broadcast ......................... 500 53,875
----------
Total Preferred Stock (cost $50,000) ............... 53,875
----------
WARRANTS - 0.11%
INDONESIA - 0.11%
*PT Bank Dagang Nasional
Warrants 2/14/00 .................................. 37,500 15,256
----------
Total Warrants (cost $0) .......................... 15,256
----------
<PAGE>
- --------------------------------------------------------------------------------
MARKET
PRINCIPAL VALUE
AMOUNT** (U.S. $)
- --------------------------------------------------------------------------------
BONDS - 31.30%
AUSTRALIA - 2.81%
Australian Government 9.50% 08/15/03 ...........A$ 100,000 $ 85,141
Commerzbank 10.50% 01/19/00 ...................... 50,000 41,415
New South Wales International
7.00% 04/01/04 ................................. 100,000 72,785
Queensland Treasury Global
8.00% 08/14/01 ................................. 50,000 39,820
Queensland Treasury-Global
8.00% 05/14/03 ................................. 200,000 158,281
--------
397,442
--------
CANADA - 2.52%
Export-Inport Bank of Japan
7.75% 10/08/02 ................................C$ 50,000 38,590
GMAC Canada 6.75% 12/14/01 ....................... 100,000 73,823
Government of Canada
9.00% 12/01/04 ................................. 150,000 126,712
KFW International Finance
6.50% 12/28/01 ................................. 50,000 37,025
Kingdom of Norway 8.38% 01/27/03 ................. 50,000 39,657
Ontario Hydro 10.00% 03/19/01 .................... 50,000 41,517
--------
357,324
--------
DENMARK - 1.32%
Kingdom of Denmark 8.00% 11/15/01 ..............Dk 600,000 102,603
Kingdom of Denmark 8.00% 03/15/06 ................ 500,000 84,948
--------
187,551
--------
GERMANY - 3.30%
Baden Wurt L-Finance NV
6.63% 08/20/03 ...............................Dem 150,000 93,415
Bundesrepblik Deutscheland
5.75% 08/22/00 ................................. 350,000 214,294
Bundesrepblik Deutscheland
8.375% 05/21/01 ................................ 240,000 159,977
--------
467,686
--------
JAPAN - 3.70%
Japan Government
5.00% 09/21/98 ...............................Jpy 20,000,000 181,127
Japan Government
4.80% 06/21/99 ................................. 18,000,000 166,281
Japan Government
6.40% 03/20/00 ................................. 18,000,000 176,222
--------
523,630
--------
NEW ZEALAND - 1.43%
Government of New Zealand
6.50% 02/15/00 ...............................NZ$ 100,000 67,886
Government of New Zealand
8.00% 04/15/04 ................................. 190,000 134,604
--------
202,490
--------
SWEDEN - 0.66%
Swedish Government 13.00% 06/15/01 .............Sk 400,000 64,441
Swedish Government 9.00% 04/20/09 ................ 200,000 29,467
--------
93,908
--------
1 9 9 7 s e m i - a n n u a l r e p o r t 19
<PAGE>
Global Assets Series
Statement of Net Assets (Continued)
- --------------------------------------------------------------------------------
MARKET
PRINCIPAL VALUE
AMOUNT** (U.S. $)
- --------------------------------------------------------------------------------
BONDS (CONTINUED)
UNITED KINGDOM - 3.07%
Abbey National Treasury
8.00% 04/02/03 .............................Gbp 40,000 $ 66,735
Barclays Bank 6.50% 02/16/04 ................... 50,000 77,574
Depfa Finance 7.13% 11/11/03 ................... 60,000 95,673
Glaxo Wellcome 8.75% 12/01/05 .................. 50,000 86,803
Ontario Province 6.88% 09/15/00 ................ 25,000 40,402
UK Treasury Notes 8.00% 12/07/00 ............... 40,000 67,535
--------
434,722
--------
UNITED STATES - 12.49%
Adelphia Communications
11.88% 09/15/04 .............................. $ 25,000 26,313
+AFC Enterprises 10.25% 05/15/07 ................ 25,000 25,125
Albritton Communications
9.75% 11/30/07 ............................... 25,000 24,500
+American Builders & Contractors
10.63% 05/15/07 .............................. 25,000 25,750
American Safety Razor
9.88% 08/01/05 ............................... 25,000 26,125
American Standard 10.88% 05/15/99 .............. 25,000 26,625
+Atrium 10.50% 11/15/06 ........................ 25,000 25,687
Bell & Howell 9.25% 07/15/00 ................... 25,000 25,750
Buckeye Cellulose 8.50% 12/15/05 ............... 25,000 24,625
Calpine 10.50% 05/15/06 ........................ 25,000 26,500
Century Communications
9.75% 02/15/02 ............................... 25,000 26,000
+CFP Holdings 11.63% 01/15/04 ................... 50,000 51,125
Cinemark 9.63% 08/01/08 ........................ 25,000 25,563
Clark-Schwebel 10.50% 04/15/06 ................. 25,000 26,813
Clark Materials Handling
10.75% 11/15/06 .............................. 25,000 26,438
Cole National Group 9.88% 12/31/06 ............. 25,000 26,188
Comcast 9.13% 10/15/06 ........................ 25,000 25,625
Commonwealth Aluminum
10.75% 10/01/06 .............................. 25,000 26,125
+Consumers International
10.25% 04/01/05 .............................. 50,000 53,000
Core-Mark 11.38% 09/15/03 ...................... 25,000 26,125
Costilla Energy Notes
10.25% 10/01/06 .............................. 25,000 25,875
Delta Beverage Group
9.75% 12/15/03 ............................... 25,000 26,125
+Dyncorp 9.50% 03/01/07 ........................ 25,000 25,000
Exide Corp 10.75% 12/15/02 ..................... 25,000 26,281
First Nationwide Holdings
9.13% 01/15/03 ............................... 25,000 25,750
Fleming 10.63% 12/15/01 ........................ 50,000 52,313
Four M 12.00% 06/01/06 ........................ 25,000 25,375
<PAGE>
- --------------------------------------------------------------------------------
MARKET
PRINCIPAL VALUE
AMOUNT** (U.S. $)
- --------------------------------------------------------------------------------
BONDS (CONTINUED)
UNITED STATES (CONTINUED)
Gaylord Container 11.50% 05/15/01 ............ $ 25,000 $ 26,438
Graphic Controls 12.00% 09/15/05 ............. 25,000 27,563
+Hawk 10.25% 12/01/03 ........................ 25,000 25,688
+HCC Industries 10.75% 05/15/07 ............... 25,000 26,063
Healthsouth Rehabilitation
9.50% 04/01/01 ............................. 25,000 26,344
Hollinger International Publishing
9.25% 3/15/07 .............................. 25,000 25,313
Host Mar Travel Plaza
9.50% 05/15/05 ............................. 25,000 26,000
IMO Industries 11.75% 05/01/06 ............... 25,000 25,125
ISP Holdings 9.75% 02/15/02 .................. 16,000 16,800
ISP Holdings 9.00% 10/15/03 .................. 25,000 25,563
Jones Intercable 9.63% 03/15/02 .............. 25,000 26,250
Lamar Advertising 9.63% 12/01/06 ............. 25,000 25,563
Lenfest Communications
8.38% 11/01/05 ............................. 25,000 24,375
+Loomis Fargo & Co 10.00% 01/15/04 ............ 50,000 51,625
Mark IV Industries 8.75% 04/01/03 ............ 25,000 25,563
Mesa Operating 10.63% 07/01/06 ............... 25,000 28,188
+Motors and Gears Nts
10.75% 11/15/06 ............................ 50,000 51,813
Muzak LP/Muzak Capital
10.00% 10/01/03 ............................ 25,000 26,063
+Nortek 9.25% 03/15/07 ........................ 25,000 25,438
Olympic Financial 11.50% 03/15/07 ............ 50,000 49,750
Pacific Lumber 10.50% 03/01/03 ............... 25,000 25,625
+Petro Stopping Centers
10.50% 02/01/07 ............................ 25,000 26,000
PMI Acquisition 10.25% 09/01/03 .............. 25,000 26,188
Portola Packaging 10.75% 10/01/05 ............ 25,000 25,250
Pride Petroleum Services
9.38% 05/01/07 ............................. 25,000 25,938
Primark 8.75% 10/15/00 ...................... 25,000 25,250
Ralphs Grocery 10.45% 06/15/04 ............... 50,000 54,813
Rogers Cable Systems
9.63% 08/01/02 ............................. 25,000 26,063
Ryder Transportation Notes
10.00% 12/01/06 ............................ 25,000 25,687
Speedy Muffler King
10.88% 10/01/06 ............................ 25,000 26,188
Teekay Shipping 8.32% 02/01/08 ............... 20,000 20,050
Trump-Atlantic City 11.25% 05/01/06 .......... 50,000 49,000
Westinghouse Air Brakes
9.38% 06/15/05 ............................. 25,000 25,250
William Carter Notes
10.38% 12/01/06 ............................ 25,000 25,875
----------
1,769,423
----------
Total Bonds (cost $4,365,118) ................ 4,434,176
----------
20 1 9 9 7 s e m i - a n n u a l r e p o r t
<PAGE>
Global Assets Series
Statement of Net Assets (Continued)
- --------------------------------------------------------------------------------
MARKET
PRINCIPAL VALUE
AMOUNT** (U.S. $)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 7.29%
With Chase Manhattan Bank 5.45%
6/2/97 (dated 5/30/97,
collateralized by $116,000 U.S.
Treasury Notes 6.25% due 7/31/98
market value $118,296) ........................... $ 116,000 $ 116,000
With JP Morgan 5.50%
6/2/97 (dated 5/30/97, collateralized by
$311,000 U.S. Treasury Notes 5.125%
due 2/28/98 market value $316,014) ................ 310,000 310,000
With Paine Webber 5.50%
6/2/97 (dated 5/30/97, collateralized by
$110,000 U.S. Treasury Notes 5.625%
due 11/30/00 market value $110,228
and $193,000 U.S. Treasury Notes 5.625%
due 11/30/98 market value $197,387) ............... 301,000 301,000
With Prudential Securities 5.53%
6/2/97 (dated 5/30/97, collateralized by
$57,000 U.S. Treasury Notes 6.25%
due 6/30/98 market value $58,025
and $243,000 U.S. Treasury Notes 8.875%
due 11/15/98 market value $253,656 ................ 305,000 305,000
---------
Total Repurchase Agreements
(cost $1,032,000) .............................................. 1,032,000
---------
TOTAL MARKET VALUE OF SECURITIES - 99.84%
(cost $12,556,206) ............................................. 14,140,796
RECEIVABLES AND OTHER ASSETS NET OF
LIABILITIES - 0.16% ............................................ 23,112
-----------
NET ASSETS APPLICABLE TO 1,029,664 SHARES
(.01 PAR VALUE) OUTSTANDING - 100.00% ........................... $14,163,908
===========
NET ASSET VALUE - GLOBAL ASSET SERIES
A CLASS ($6,072,649 / 441,286 shares) ........................... $13.76
======
NET ASSET VALUE - GLOBAL ASSET SERIES
B CLASS ($3,545,652 / 257,770 shares) ........................... $13.76
======
NET ASSET VALUE - GLOBAL ASSET SERIES
C CLASS ($2,232,030 / 162,786 shares) ........................... $13.71
======
NET ASSET VALUE - GLOBAL ASSET SERIES
INSTITUTIONAL CLASS ($2,313,559 / 167,822 shares) ............... $13.79
======
<PAGE>
- --------------------------------------------------------------------------------
MARKET
VALUE
(U.S. $)
- --------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS AT MAY 31, 1997
Common Stock $.01 par value 500,000,000 shares authorized
to the Fund with 50,000,000 shares allocated to the Global
Assets Series A Class, 25,000,000 shares allocated to the
Global Assets Series B Class, 25,000,000 shares allocated
to the Global Assets Series C Class, and 50,000,000
allocated to the Global Assets
Series Institutional Class .................................... $11,664,339
Accumulated undistributed Income:
Net investment income ......................................... 57,218
Net realized gain on investments .............................. 859,278
Net unrealized appreciation on investments and
foreign currencies ........................................... 1,583,073
-----------
Total net assets .............................................. $14,163,908
===========
*Non-Income producing security.
**Principal amount is stated in the currency in which each bond is
denominated.
A$ - Australian Dollars Jpy - Japanese Yen
Gbp - British Pounds NZ$ - New Zealand Dollars
C$ - Canadian Dollars Sp - Spanish Peseta
Dk - Danish Kroner Sk - Swedish Kroner
Dem - German Deutsche Mark $ - U.S. Dollars
+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 May 31, 1997,
these securities amounted to $412,314 or 2.91% of net assets.
ADR - American Depository Receipt
GDR - Global Depository Receipt
See accompanying notes
1 9 9 7 s e m i - a n n u a l r e p o r t 21
<PAGE>
DELAWARE GROUP GLOBAL & INTERNATIONAL FUNDS, INC. --
GLOBAL BOND SERIES
STATEMENT OF NET ASSETS --
MAY 31, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
PRINCIPAL VALUE
AMOUNT* (U.S. $)
- --------------------------------------------------------------------------------
BONDS - 89.26%
AUSTRALIA - 9.89%
Australian Government
6.250% 03/15/99..............................A$ 700,000 $ 537,429
Australian Government
9.500% 08/15/03 .............................. 350,000 297,993
Australian Government
10.000% 02/15/06 ............................. 100,000 88,389
New South Wales International
7.000% 04/01/04 .............................. 300,000 218,354
Queensland Treasury
8.000% 08/14/01 .............................. 250,000 199,100
Queensland Treasury
8.000% 05/14/03 .............................. 250,000 197,851
----------
1,539,116
----------
CANADA - 5.62%
Autobahn Schnell
8.500% 03/03/03 C$ ............................ 60,000 47,915
Deutsche Bank 7.000% 01/07/04 .................. 200,000 149,461
Export-Inport Bank of Japan
7.750% 10/08/02 ............................... 270,000 208,388
General Electric Capital of Canada
7.125% 02/12/04 ............................... 80,000 59,930
KFW International Finance
6.500% 12/28/01 ............................... 120,000 88,860
Kingdom of Norway
8.375% 01/27/03 ............................... 120,000 95,176
Ontario Hydro 10.000% 03/19/01 ................. 70,000 224,191
----------
873,921
----------
DENMARK - 4.73%
Kingdom of Denmark
8.000% 11/15/01 Dk ............................ 3,500,000 598,516
Kingdom of Denmark
8.000% 05/15/03 ............................... 800,000 137,074
----------
735,590
----------
GERMANY - 11.35%
Baden Wurt L-Finance NV
6.625% 08/20/03 Dem ........................... 75,000 46,707
Bundesrepblik Deutscheland
8.375% 05/21/01 ............................... 490,000 326,619
Deutsche Pfandbrief Hypotheken
5.625% 02/07/03 ............................... 200,000 119,627
Euro Bank Reconstruction & Development
4.875% 02/28/01 ............................... 600,000 358,002
International Bank Reconstruction
& Development 6.125% 09/27/02 ................. 600,000 369,612
Republic of Finland 5.500% 02/09/01 ............ 900,000 544,919
----------
1,765,486
----------
<PAGE>
- --------------------------------------------------------------------------------
MARKET
PRINCIPAL VALUE
AMOUNT* (U.S. $)
- --------------------------------------------------------------------------------
BONDS (CONTINUED)
ITALY - 8.76%
Italian Government
9.500% 02/01/01 ......................Itl 1,000,000,000 $ 641,670
Italian Government
12.000% 01/01/03 ........................ 1,000,000,000 720,598
----------
1,362,268
----------
JAPAN - 8.61%
Japan Government
4.800% 06/21/99 ......................Jpy 50,000,000 461,892
Japan Government
6.400% 03/20/00 ......................... 50,000,000 489,505
Japan Highway 7.875% 09/27/02 ............ 500,000 387,945
----------
1,339,342
----------
NEW ZEALAND - 11.80%
Government of New Zealand
6.500% 02/15/00 ......................NZ$ 200,000 135,772
Government of New Zealand
8.000% 02/15/01 ......................... 900,000 636,358
Government of New Zealand
8.000% 04/15/04 ......................... 1,500,000 1,062,666
----------
1,834,796
----------
SWEDEN - 3.31%
Swedish Government
13.000% 06/15/01 ......................Sk 1,300,000 209,432
Swedish Government
10.250% 05/05/03 ........................ 2,000,000 304,963
----------
514,395
----------
UNITED KINGDOM - 11.47%
Abbey National Treasury
8.000% 04/02/03 ......................Gbp 40,000 66,735
Barclays Bank 6.500% 02/16/04 ............ 50,000 77,574
Depfa Finance 7.125% 11/11/03 ............ 220,000 350,802
Glaxo Wellcome 8.750% 12/01/05 ........... 230,000 399,295
Ontario Province 6.875% 09/15/00 ......... 85,000 137,368
SmithKline Beecham Notes
8.375% 12/29/00 ......................... 150,000 252,258
UK Conversion S47 Stock Guilt
9.000% 03/03/00 ......................... 85,000 146,258
UK Treasury 8.500% 12/07/05 .............. 200,000 354,648
----------
1,784,938
----------
UNITED STATES - 13.72%
U.S. Treasury Bonds
13.375% 08/15/01 ........................ $ 500,000 626,000
U.S. Treasury Note
5.625% 11/30/98 ......................... 300,000 298,242
22 1 9 9 7 s e m i - a n n u a l r e p o r t
<PAGE>
Global Bonds Series
Statement of Net Assets (Continued)
- --------------------------------------------------------------------------------
MARKET
PRINCIPAL VALUE
AMOUNT* (U.S. $)
- --------------------------------------------------------------------------------
BONDS (CONTINUED)
UNITED STATES (CONTINUED)
U.S. Treasury Note
6.250% 02/15/03 ............................... $ 700,000 $ 690,704
U.S.Treasury Note
7.500% 11/15/01 .............................. 500,000 519,235
----------
2,134,181
----------
Total Bonds (cost $14,060,853) ................. 13,884,033
----------
REPURCHASE AGREEMENTS - 8.62%
With Chase Manhattan 5.45% 6/2/97
(dated 5/30/97, collateralized by $150,000
U.S. Treasury Notes 6.25% due 7/31/98
market value $153,717) ........................ 151,000 151,000
With JP Morgan Securities 5.50% 6/2/97
(dated 5/30/97, collateralized by $408,000
U.S. Treasury Notes 5.125% due 2/28/98
market value $410,635) ........................ 402,000 402,000
With PaineWebber 5.50% 6/2/97
(dated 5/30/97, collateralized by $251,000
U.S. Treasury Notes 5.625% due 11/30/98
market value $256,488 and $143,000
U.S. Treasury Notes 5.625% due 11/30/00
market value $143,232) ........................ 391,000 391,000
With Prudential Securities 5.53% 6/2/97
(dated 5/30/97, collateralized by $73,000
U.S. Treasury Notes 6.25% due 6/30/98
market value $75,633 and $316,000
U.S. Treasury Notes 8.875%
due 11/15/98
market value $329,605) ........................ 397,000 397,000
----------
Total Repurchase Agreements
(cost $1,341,000) ............................ 1,341,000
----------
<PAGE>
- --------------------------------------------------------------------------------
MARKET
VALUE
(U.S. $)
- --------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES - 97.88% ..................... $ 15,225,033
(cost $15,401,853)
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES - 2.12% .................................. 329,365
------------
NET ASSETS APPLICABLE TO 1,445,665 SHARES
($.01 PAR VALUE OUTSTANDING) - 100.00% ....................... $ 15,554,398
============
NET ASSET VALUE - GLOBAL BOND SERIES A CLASS
($4,600,014 / 427,797 shares) ............................... $10.75
======
NET ASSET VALUE - GLOBAL BOND SERIES B CLASS
($1,111,208 / 103,299 shares) ............................... $10.76
======
NET ASSET VALUE - GLOBAL BOND SERIES C CLASS
($594,259 / 55,518 shares) .................................. $10.70
======
NET ASSET VALUE - GLOBAL BOND SERIES
INSTITUTIONAL CLASS
($9,248,917 / 859,051 shares) ............................... $10.77
======
COMPONENTS OF NET ASSETS AT MAY 31, 1997:
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 ........................................... $ 15,853,795
Accumulated undistributed :
Net investment (loss) ....................................... (20,966)
Net realized (loss) on investments ........................... (94,523)
Net unrealized (depreciation) of investments
and foreign currencies ...................................... (183,908)
------------
Total net assets ............................................. $ 15,554,398
============
* Principal amount is stated in the currency in which each bond is
denominated.
A$ - Australian Dollars Itl - Italian Lire
Gbp - British Pounds Jpy - Japanese Yen
C$ - Canadian Dollars NZ$ - New Zealand Dollars
Dk - Danish Krona Sk - Swedish Kroner
Dem - German Deutsche Marks $ - U.S. Dollars
See accompanying notes
1 9 9 7 s e m i - a n n u a l r e p o r t 23
<PAGE>
DELAWARE GROUP GLOBAL & INTERNATIONAL FUNDS, INC. --
EMERGING MARKETS SERIES
STATEMENT OF NET ASSETS --
MAY 31, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
NUMBER VALUE
OF SHARES (U.S. $)
- --------------------------------------------------------------------------------
COMMON STOCK - 88.87%
AUSTRALIA - 1.67%
Orogen Minerals .................................. 5,000 $ 13,534
Quilmes Industrial SA - ADR ...................... 19,700 229,013
----------
242,547
----------
ARGENTINA - 2.76%
Central Puerto S.A. - Class B .................... 31,000 99,249
Transportadora de Gas del sur, S.A. - Class B .... 70,600 177,999
YPF Sociedad Anonima - ADR ....................... 4,100 123,000
----------
400,248
----------
BRAZIL - 9.16%
Aracruz Celulose S.A. - ADR ...................... 11,250 229,219
*Centrais Electricas
de Santa Catarina SA - GDR ...................... 1,000 122,880
Companhia Energetica de Minas Gerais - ADR ....... 2,550 112,914
Elevadores Atlas S.A ............................. 6,000 76,812
Lojas Renner S.A ................................. 4,100,000 229,874
Metalurgica Gerdau ............................... 4,910,000 183,526
Telecommunicacoes Brasileiras S/A - ADR .......... 1,750 240,406
Usinas Siderurgicas
de Minas Gerais S/A - ADR ....................... 12,400 135,160
----------
1,330,791
----------
CHILE - 4.94%
Administradora de Fondos
de Pensiones Provida S.A. - ADR ................. 10,100 207,050
*Banco BHIF - ADR ................................ 8,200 171,175
Cia. de Telecomunicaciones
de Chile S.A. - ADR ............................. 5,540 189,745
Empresa Nacional Electricidad SA - ADR ........... 6,650 149,625
----------
717,595
----------
CZECH REPUBLIC - 1.41%
*Inzenyrske a Prumyslove Stavby a.s .............. 6,000 39,539
*Telekomunikacni Montaze Praha a.s ............... 900 55,005
*SPT Telecom a.s ................................. 1,200 110,305
----------
204,849
----------
EGYPT - 1.68%
Al-Ahram Beverages - GDR ......................... 3,500 60,113
*Commercial International Bank - GDR ............. 3,910 76,949
*Suez Cement - GDR ............................... 6,000 106,800
----------
243,862
----------
GERMANY - 0.47%
*EGIS Rt ......................................... 1,150 67,774
----------
67,774
----------
GREECE - 3.71%
Attica Enterprises S.A ........................... 15,650 140,763
Ergo Bank S.A .................................... 2,889 204,168
Helenic Bottling Company S.A ..................... 5,140 194,361
----------
539,292
----------
- ----------
Top 10 stock holdings, representing 17.52% of net assets are in boldface.
<PAGE>
- --------------------------------------------------------------------------------
MARKET
NUMBER VALUE
OF SHARES (U.S. $)
- --------------------------------------------------------------------------------
COMMON STOCK (CONTINUED)
HONG KONG - 5.66%
Guangdong Investments ................................ 148,000 $ 195,780
Guangdong Kelon Electric Holding ..................... 229,000 239,388
Northeast Electrical Transmission & Transformation
Machinery Manufacturing Ltd. ........................ 1,220,000 218,855
Shenzhen Expressway Co Ltd ........................... 500,000 167,774
----------
821,797
----------
HUNGARY - 2.06%
MOL Magyar Olaj-es Gazipari Rt - GDR ................. 9,150 170,876
Richter Gedeon Rt - GDR .............................. 1,550 128,650
----------
299,526
----------
INDIA - 5.33%
*BSES Ltd - GDR ...................................... 5,000 124,375
Gujarat Ambuja Cement - GDR .......................... 14,600 142,350
*India Fund, (The) .................................. 22,200 188,700
Larsen & Toubro - GDR ................................ 10,800 141,750
Tata Engineering & Locomotive Ltd. - GDR ............. 14,000 176,400
----------
773,575
----------
INDONESIA - 4.29%
PT Bank Dagang Nasional .............................. 238,875 257,672
PT Semen Gresik ...................................... 52,000 123,936
PT United Tractors ................................... 77,000 242,058
----------
623,666
----------
ISRAEL - 1.73%
Bank Hapoalim ........................................ 59,200 133,959
Israel Chemicals Limited ............................. 95,581 117,435
----------
251,394
----------
LUXEMBOURG - 1.31%
*Banque Libanaise - GDR .............................. 10,000 190,000
----------
190,000
----------
MALAYSIA - 6.03%
Leader Universal Holdings Berhad ..................... 55,000 119,280
Nestle Berhad ........................................ 23,000 171,150
Petronas Dagangan Berhad ............................. 55,000 130,223
Public Finance Berhad ................................ 105,000 167,131
Resorts World Berhad ................................. 47,000 157,103
Sime Darby Berhad .................................... 40,000 130,521
----------
875,408
----------
MEXICO - 7.09%
ALFA, S.A. de C.V. - Class A ......................... 30,015 175,099
Cemex, S.A. de C.V. - Class B ........................ 45,000 183,250
Controladora Comercial Mexicana
SA de CV - GDR ...................................... 2,000 31,250
Grupo Minsa SA - Class C ............................. 52,000 64,347
Grupo Minsa - ADR .................................... 13,000 162,500
Telefonos De Mexico SA ............................... 3,120 138,450
Vitro SA - ADR ....................................... 31,900 275,138
----------
1,030,034
----------
24 1 9 9 7 s e m i - a n n u a l r e p o r t
<PAGE>
Emerging Market Series
Statement of Net Assets (Continued)
- --------------------------------------------------------------------------------
MARKET
NUMBER VALUE
OF SHARES (U.S. $)
- --------------------------------------------------------------------------------
COMMON STOCK (CONTINUED)
PERU - 3.04%
Banco de Credito del Peru .......................... 83,618 $159,929
Cementos Lima S.A .................................. 7,015 136,801
Telefonica del Peru, S.A. - ADR .................... 5,700 144,638
--------
441,368
--------
PHILIPPINES - 1.74%
Philippine Long Distance
Telephone Company ADR ............................. 4,380 253,493
--------
253,493
--------
POLAND - 1.04%
Elektrim SA ........................................ 17,000 151,641
--------
151,641
--------
PORTUGAL - 1.54%
Portugal Telecom SA ................................ 5,840 224,363
--------
224,363
--------
RUSSIA - 1.99%
+*Gazprom - ADR .................................... 5,000 90,000
Lukoil Holding - ADR ............................... 1,800 107,982
+Mosenergo - ADR ................................... 2,400 91,008
--------
288,990
--------
SLOVENIA - 0.91%
SKB Banka - GDR .................................... 4,000 132,000
--------
132,000
--------
SOUTH AFRICA - 5.05%
Amalgamated Banks of South Africa .................. 34,000 210,050
AngloAmerican Corporation
of South Africa Ltd. .............................. 3,050 178,528
Sappi Ltd. ......................................... 16,880 154,914
Sasol Ltd. ......................................... 15,500 189,955
--------
733,447
--------
SOUTH KOREA - 4.55%
Cho Hung Bank - GDR ................................ 9,850 52,944
Korea Electric Power - ADR ......................... 12,470 227,453
Pohang Iron & Steel Ltd. - ADR ..................... 4,060 300,229
Shinhan Bank ....................................... 6,950 81,076
--------
661,702
--------
TAIWAN - 1.70%
*Yageo - GDR ....................................... 15,000 247,500
--------
247,500
--------
THAILAND - 4.12%
Ayudhya Life Insurance ............................. 33,000 62,570
Hana Microelectronics Ltd - Local .................. 13,700 67,071
Hana Microelectronics Ltd - Alein .................. 33,000 164,205
Ruang Khao 2 Fund .................................. 611,000 176,533
Thai Reinsurance Co Ltd. ........................... 43,000 127,689
--------
598,068
--------
TURKEY - 2.10%
Anadolu Isuzu Otomotiv Sanay ....................... 220,000 130,838
Netas-Northern Eleckrik
Telekomunikayson A.S .............................. 520,000 174,876
--------
305,714
--------
<PAGE>
- --------------------------------------------------------------------------------
MARKET
NUMBER VALUE
OF SHARES (U.S. $)
- --------------------------------------------------------------------------------
COMMON STOCK (CONTINUED)
VENEZUELA - 1.79%
*Compania Anonima Nacional
Telefonos de Venezuela ...................... 7,000 $ 259,875
----------
259,875
----------
Total Common Stock
(cost $11,361,875) ......................... 12,910,519
----------
WARRANTS - 0.09%
INDONESIA - 0.09%
*PT Bank Dagang Nasional 2/14/00 ............. 34,125 13,883
----------
Total Warrants (cost $0) ..................... 13,883
----------
RIGHTS - 0.10%
GREECE - 0.10%
Attica Enterprises S.A. - Rights ............. 15,650 9,250
Ergo Bank S.A. - Rights ...................... 71 5,018
----------
Total Rights (cost $0) ....................... 14,268
----------
PRINCIPAL
AMOUNT++
BONDS - 1.99%
TURKEY - 1.99%
Turkey Government Treasury Bill
.000% 02/25/1998 .........................Tkl 74,000,000,000 288,612
---------
Total Bonds (cost $296,077) .................. 288,612
---------
REPURCHASE AGREEMENTS - 11.40%
With Chase Manhattan 5.45% 6/2/97
(dated 5/30/97, collateralized by
$185,000 U.S. Treasury Notes 6.25%
due 7/31/98 market value
$189,824) .................................. $186,000 186,000
With JP Morgan Securities 5.50% 6/2/97
(dated 5/30/97, collateralized by
$503,000 U.S. Treasury Notes 5.125%
due 2/28/98 market value
$507,093) .................................. 497,000 497,000
With PaineWebber 5.50% 6/2/97
(dated 5/30/97, collateralized by
$310,000 U.S. Treasury Notes 5.625%
due 11/30/98 market value $316,737
and $176,000 U.S. Treasury Notes 5.625%
due 11/30/00 market value
$176,877) .................................. 483,000 483,000
With Prudential Securities 5.53% 6/2/97
(dated 5/30/97, collateralized by
$91,000 U.S. Treasury Notes 6.25% due
6/30/98 market value $93,399 and
$391,000 U.S. Treasury Notes 8.875% due
11/15/98 market value $407,029) ............. 490,000 490,000
---------
Total Repurchase Agreements
(cost $1,656,000) .......................... 1,656,000
---------
1 9 9 7 s e m i - a n n u a l r e p o r t 25
<PAGE>
Emerging Market Series
Statement of Net Assets (Continued)
- --------------------------------------------------------------------------------
MARKET
VALUE
(U.S.$)
- --------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES - 102.45%
(cost $13,313,952) ...................................... $ 14,883,282
LIABILITIES NET OF RECEIVABLES
AND OTHER ASSETS - (2.45%) .............................. (355,984)
--------------
NET ASSETS APPLICABLE TO 1,211,405 SHARES
($.01 PAR VALUE) OUTSTANDING - 100.00% $ 14,527,298
==============
NET ASSET VALUE - EMERGING MARKETS SERIES A CLASS
($9,360,123 / 779,896 shares) ........................... $12.00
======
NET ASSET VALUE - EMERGING MARKETS SERIES B CLASS
($2,428,290 / 203,352 shares) ........................... $11.94
======
NET ASSET VALUE - EMERGING MARKETS SERIES C CLASS
($879,599 / 73,674 shares) .............................. $11.94
======
NET ASSET VALUE - INTERNATIONAL EQUITY
SERIES INSTITUTIONAL CLASS
($1,859,286 / 154,483 shares) ........................... $12.04
======
- --------------------------------------------------------------------------------
MARKET
VALUE
(U.S.$)
- --------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS AT MAY 31, 1997:
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 ............................................. $12,857,258
Accumulated undistributed:
Net investment income ........................................... 20,097
Net realized gain on investments ................................ 80,637
Net unrealized appreciation of investments
and foreign currencies ......................................... 1,569,306
-----------
Total net assets ................................................ $14,527,298
===========
- ----------
*Non-income producing security.
+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 May 31,
1997, these securities amounted to $181,008 or 1.28% of net assets.
++Principal amount is stated in the currency in which each bond is
denominated.
Tkl - Turkish Lira
$ - U.S. Dollar
ADR - American Depository Receipt
GDR - Global Depository Receipt
See accompanying notes
26 1 9 9 7 s e m i - a n n u a l r e p o r t
<PAGE>
DELAWARE GROUP GLOBAL & INTERNATIONAL FUNDS, INC. --
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MAY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
International Equity Global Assets Global Bond Emerging Markets
Series Series Series Series
----------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest ..................................................... $ 248,163 $ 284,060 $ 465,144 $ 24,864
Dividends .................................................... 2,265,348 128,253 -- 104,018
Foreign tax withheld ......................................... (264,535) (8,722) -- (6,965)
------------ ------------ ------------ ------------
2,248,976 403,591 465,144 121,917
------------ ------------ ------------ ------------
EXPENSES:
Management fees .............................................. 577,404 67,522 48,762 60,377
Custodian fees ............................................... 66,860 14,174 6,902 14,665
Dividend disbursing and transfer agent fees and expenses ..... 357,865 31,499 14,920 16,445
Distribution expense ......................................... 239,729 44,465 14,442 14,356
Registration fees ............................................ 35,028 20,050 26,370 29,860
Reports and statements to shareholders ....................... 34,480 1,040 4,070 6,912
Accounting fees and salaries ................................. 31,444 3,356 2,607 1,287
Professional fees ............................................ 16,140 5,292 8,496 9,096
Directors' fees .............................................. 1,850 868 817 788
Taxes (other than taxes on income) ........................... 4,500 1,245 265 170
Amortization of organization expenses ........................ 56 7,381 7,552 14,571
Other ........................................................ 20,331 3,254 5,143 3,740
------------ ------------ ------------ ------------
1,385,687 200,146 140,346 172,267
Less expenses absorbed by Delaware International Advisers Ltd. 12,818 69,182 65,258 77,305
------------ ------------ ------------ ------------
1,372,869 130,964 75,088 94,962
------------ ------------ ------------ ------------
NET INVESTMENT INCOME ........................................ 876,107 272,627 390,056 26,955
------------ ------------ ------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on:
Investment transactions ..................................... 791,192 862,367 (96,626) 80,387
Foreign currencies .......................................... 2,223,115 (8,667) 161,547 (3,997)
------------ ------------ ------------ ------------
Net realized gain (loss) .................................... 3,014,307 853,700 64,921 76,390
Net increase (decrease) in unrealized appreciation
(depreciation) during the period:
Investment transactions ..................................... 10,705,649 (300,391) (610,632) 1,643,151
Foreign currencies .......................................... (170,273) (2,653) (43,317) 205
------------ ------------ ------------ ------------
Net increase (decrease) in unrealized appreciation
(depreciation) .............................................. 10,535,376 (303,044) (653,949) 1,643,356
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCIES ....................... 13,549,683 550,656 (589,028) 1,719,746
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS ............................................. $ 14,425,790 $ 823,283 $ (198,972) $ 1,746,701
============ ============ ============ ============
</TABLE>
See accompanying notes
1 9 9 7 s e m i - a n n u a l r e p o r t 27
<PAGE>
DELAWARE GROUP GLOBAL & INTERNATIONAL FUNDS, INC. --
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED MAY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
International Equity Global Assets Global Bond Emerging Markets
Series Series Series Series
---------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income ............................................... $ 876,107 $ 272,627 $ 390,056 $ 26,955
Net realized gain on investments and foreign currencies ............. 3,014,307 853,700 64,921 76,390
Net increase (decrease) in unrealized appreciation (depreciation)
during the period .................................................. 10,535,376 (303,044) (653,949) 1,643,356
------------- ------------- ------------- -------------
Net increase (decrease) in net assets resulting from operations ..... 14,425,790 823,283 (198,972) 1,746,701
------------- ------------- ------------- -------------
DISTRIBUTION TO SHAREHOLDERS FROM:
Net investment income:
A Class ............................................................ (2,342,406) (262,665) (166,665) (2,696)
B Class ............................................................ (239,049) (93,364) (33,936) --
C Class ............................................................ (43,715) (28,335) (14,153) --
Institutional Class ................................................ (973,770) (60,435) (342,329) (9,242)
Net realized gain from security transactions:
A Class ............................................................ (123,938) (45,735) (12,933) (20,222)
B Class ............................................................ (15,415) (17,933) (2,428) (2,270)
C Class ............................................................ (2,682) (4,527) (424) (1,540)
Institutional Class ................................................ (46,296) (8,230) (23,842) (27,727)
------------- ------------- ------------- -------------
(3,787,271) (521,224) (596,710) (63,697)
------------- ------------- ------------- -------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold:
A Class ............................................................ 42,896,858 2,318,435 1,827,469 6,534,515
B Class ............................................................ 10,823,261 1,219,730 597,426 2,001,607
C Class ............................................................ 4,202,424 998,826 484,329 608,676
Institutional Class ................................................ 15,842,882 111,732 3,183,571 1,364,466
Net asset value of shares issued upon reinvestment of dividends
from net investment income and net realized gain on security
transactions:
A Class ............................................................ 2,354,931 304,469 148,991 22,478
B Class ............................................................ 231,801 107,681 26,158 2,081
C Class ............................................................ 45,546 31,660 14,131 1,540
Institutional Class ................................................ 1,013,525 68,664 365,978 36,969
------------- ------------- ------------- -------------
77,411,228 5,161,197 6,648,053 10,572,332
------------- ------------- ------------- -------------
Cost of shares repurchased:
A Class ............................................................ (27,905,595) (8,486,954) (601,618) (594,866)
B Class ............................................................ (989,252) (2,661,940) (166,402) (17,076)
C Class ............................................................ (501,484) (67,139) (3,019) (955)
Institutional Class ................................................ (5,342,670) (146,791) (526,217) (3,831,508)
------------- ------------- ------------- -------------
(34,739,001) (11,362,824) (1,297,256) (4,444,405)
------------- ------------- ------------- -------------
Increase (decrease) in assets derived from capital share transactions 42,672,227 (6,201,627) 5,350,797 6,127,927
------------- ------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS ............................... 53,310,746 (5,899,568) 4,555,115 7,810,931
NET ASSETS:
Beginning of year ................................................... 136,158,064 20,063,476 10,999,283 6,716,367
------------- ------------- ------------- -------------
End of year ......................................................... $ 189,468,810 $ 14,163,908 $ 15,554,398 $ 14,527,298
============= ============= ============= =============
</TABLE>
See accompanying notes
28 1 9 9 7 s e m i - a n n u a l r e p o r t
<PAGE>
Statements of Changes in Net Assets (Continued)
<TABLE>
<CAPTION>
6/10/96*
YEAR ENDED YEAR ENDED YEAR ENDED TO
11/30/96 11/30/96 11/30/96 11/30/96
INTERNATIONAL EQUITY GLOBAL ASSETS GLOBAL BOND MERGING MARKETS
SERIES SERIES SERIES SERIES
----------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
<S> <C> <C> <C> <C>
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 increase (decrease) in unrealized appreciation (depreciation) . . . 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)
---------- --------- -------- --------
DISTRIBUTION 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 on 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 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 year. . . . . . . . . . . . . . . . . . . . . . . . . . . 77,386,950 5,931,237 1,905,845 -
------------ ----------- ----------- ----------
End of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$136,158,064 $20,063,476 $10,999,283 $6,716,367
============ =========== =========== ==========
</TABLE>
- ----------
*Date of initial public offering
See accompanying notes
1 9 9 7 s e m i - a n n u a l r e p o r t 29
<PAGE>
Delaware Group Global & International Funds, Inc.
Financial Highlights May 31, 1997
Selected data for each share of the Fund outstanding throughout each period
were as follows:
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY SERIES A CLASS
------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED
5/31/97 11/30/96 11/30/95 11/30/94 11/30/93 11/30/92
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..................... $14.640 $12.190 $11.920 $11.250 $9.590 $9.650
Income from investment operations:
Net investment income\1 ................................. 0.071 0.490 0.297 0.140 0.499 0.162
Net realized and unrealized gain (loss) from investments
& foreign currencies ................................... 1.174 2.385 0.628 0.895 1.636 (0.172)
------- ------- ------- ------- ------ ------
Net increase (decrease) in net assets from
investment operations ................................... 1.245 2.875 0.925 1.035 2.135 (0.010)
------- ------- ------- ------- ------ ------
Less dividends and distributions:
Dividends from net investment income .................... (0.375) (0.280) (0.185) (0.225) (0.475) (0.050)
Distributions from net realized
gain on security transactions. . ....................... (0.020) (0.145) (0.470) (0.140) none none
------- ------- ------- ------- ------ ------
Total dividends and distributions ....................... (0.395) (0.425) (0.655) (0.365) (0.475) (0.050)
------- ------- ------- ------- ------ ------
Net asset value, end of period. .......................... $15.490 $14.640 $12.190 $11.920 $11.250 $9.590
======= ======= ======= ======= ======= ======
Total Return\2 ........................................... 8.78% 24.22% 8.17% 9.23% 23.08% (0.15%)
Ratios and supplemental data:
Net assets, end of period (000 omitted) ................. $112,909 $89,177 $62,251 $53,736 $31,673 $4,604
Ratio of expenses to average net assets ................. 1.77% 1.85% 2.07% 1.56% 1.25% 1.25%
Ratio of expenses to average net assets
prior to expense limitation ............................ 1.79% 1.95% 2.07% 1.82% 2.16% 5.67%
Ratio of net investment income to average net assets .... 1.15% 3.70% 2.57% 1.22% 3.91% 2.44%
Ratio of net investment income to average net assets
prior to expense limitation ............................ 1.13% 3.60% 2.57% 0.96% 3.00% (2.00%)
Portfolio turnover ...................................... 4% 9% 21% 27% 24% 12%
Average commission rate paid\3 .......................... $0.0253 $0.0243 NA NA NA NA
</TABLE>
\1 The year ended November 30, 1996 per share information was based on the
average shares outstanding method.
\2 Does not include maximum sales charge of 4.75% nor the 1% limited
contingent deferred sales charge that would apply in the event of certain
redemptions within 12 months of purchase.
\3 Computed by dividing the total amount of commissions paid by the toal
number of shares purchased and sold during the period for which there was a
commission charged.
See accompanying notes
30 1 9 9 7 s e m i - a n n u a l r e p o r t
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each period were
as follows:
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY SERIES B CLASS INTERNATIONAL EQUITY SERIES C CLASS
------------------------------------------------------------------------------------------
SIX MONTHS 9/6/94(1) SIX MONTHS YEAR 11/29/95(2)
ENDED YEAR ENDED TO ENDED ENDED TO
5/31/97 11/30/96 11/30/95 11/30/94 5/31/97 11/30/96 11/30/95
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period................................ $14.560 $12.130 $11.900 $12.860 $14.540 $12.190 $12.240
Income from investment operations:
Net investment income(3).............. 0.058 0.398 0.278 0.036 0.023 0.400 none
Net realized and unrealized gain
(loss) from investments & foreign
currencies........................... 1.132 2.377 0.567 (0.966) 1.167 2.375 (0.050)
------- ------- ------- ------- ------- ------- -------
Net increase (decrease) in net assets
from investment operations........... 1.190 2.775 0.845 (0.930) 1.190 2.775 (0.050)
------- ------- ------- ------- ------- ------- -------
Less dividends and distributions:
Dividends from net investment income.. (0.300) (0.200) (0.145) (0.030) (0.300) (0.280) none
Distributions from net realized gain
on security transactions............. (0.020) (0.145) (0.470) none (0.020) (0.145) none
------- ------- ------- ------- ------- ------- -------
Total dividends and distributions..... (0.320) (0.345) (0.615) (0.030) (0.320) (0.425) none
------- ------- ------- ------- ------- ------- -------
Net asset value, end of period......... $15.430 $14.560 $12.130 $11.900 $15.410 $14.540 $12.190
======= ======= ======= ======= ======= ======= =======
Total Return(4)........................ 8.39% 23.38% 7.46% (7.24%) 8.40% 23.39% (5)
Ratios and supplemental data:
Net assets, end of period
(000 omitted).......................... $22,203 $10,878 $3,471 $624 $6,004 $1,909 $5
Ratio of expenses to average
net assets............................ 2.47% 2.55% 2.77% 2.26% 2.47% 2.55% (5)
Ratio of expenses to average net assets
prior to expense limitation........... 2.49% 2.65% 2.77% 2.52% 2.49% 2.65% (5)
Ratio of net investment income to
average net assets.................... 0.45% 3.00% 1.87% 0.52% 0.47% 3.00% (5)
Ratio of net investment income to
average net assets prior to expense
limitation............................ 0.43% 2.90% 1.87% 0.26% 0.49% 2.90% (5)
Portfolio turnover..................... 4% 9% 21% 27% 4% 9% (5)
Average commission rate paid(6)........ $0.0253 $0.0243 NA NA $0.0253 $0.0243 NA
</TABLE>
- -----------------------
(1) Date of commencement of trading; ratios have been annualized and total
return has not been annualized.
(2) Date of commencement of trading.
(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.
(6) Computed by dividing the total amount of commissions paid by the total
number of shares purchased and sold during the period for which there was a
commission charged.
See accompanying notes
1 9 9 7 s e m i - a n n u a l r e p o r t 31
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each period were
as follows:
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY SERIES INSTITUTIONAL CLASS
----------------------------------------------------------------------------
SIX MONTHS 11/9/92(1)
ENDED YEAR ENDED TO
5/31/97 11/30/96 11/30/95 11/30/94 11/30/93 11/30/92
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.......... $14.710 $12.240 $11.970 $11.290 $9.590 $9.520
Income from investment operations:
Net investment income(2)..................... 0.114 0.530 0.323 0.166 0.594 0.021
Net realized and unrealized gain from
investments & foreign currencies............ 1.151 2.405 0.637 0.899 1.581 0.049
------- ------- ------- ------- ------- ------
Net increase in net assets
from investment operations.................. 1.265 2.935 0.960 1.065 2.175 0.070
------- ------- ------- ------- ------- ------
Less dividends and distributions:
Dividends from net investment income......... (0.415) (0.320) (0.220) (0.245) (0.475) none
Distributions from net realized gain on
security transactions....................... (0.020) (0.145) (0.470) (0.140) none none
------- ------- ------- ------- ------- ------
Total dividends and distributions............ (0.435) (0.465) (0.690) (0.385) (0.475) none
------- ------- ------- ------- ------- ------
Net asset value, end of period................ $15.540 $14.710 $12.240 $11.970 $11.290 $9.590
======= ======= ======= ======= ======= ======
Total Return.................................. 8.91% 24.68% 8.46% 9.47% 23.52% (0.15%)
Ratios and supplemental data:
Net assets, end of period (000 omitted)...... $48,353 $34,194 $11,660 $7,613 $3,959 $1,120
Ratio of expenses to average net assets...... 1.47% 1.55% 1.77% 1.26% 0.95% 0.95%
Ratio of expenses to average net assets
prior to expense limitation................. 1.49% 1.65% 1.77% 1.52% 1.86% -
Ratio of net investment income to average
net assets.................................. 1.45% 4.00% 2.87% 1.52% 4.21% 2.74%
Ratio of net investment income to average
net assets prior to expense limitation...... 1.43% 3.90% 2.87% 1.26% 3.30% -
Portfolio turnover........................... 4% 9% 21% 27% 24% 12%
Average commission rate paid(3).............. $0.0253 $0.0243 NA NA NA NA
</TABLE>
- -----------------
(1) Date of commencement of trading; ratios have been annualized and total
return has not been annualized.
(2) The year ended November 30, 1996 per share information was based on the
average shares outstanding method.
(3) Computed by dividing the total amount of commissions paid by the total
number of shares purchased and sold during the period for which there was a
commission charged.
32 1 9 9 7 s e m i - a n n u a l r e p o r t
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each period
were as follows:
<TABLE>
<CAPTION>
GLOBAL ASSETS SERIES A CLASS GLOBAL ASSETS SERIES B CLASS
---------------------------------------------------------------------------------
SIX MONTHS YEAR 12/27/94(1) SIX MONTHS YEAR 12/27/94(1)
ENDED ENDED TO ENDED ENDED TO
5/31/97 11/30/96 11/30/95 5/31/97 11/30/96 11/30/95
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........... $13.310 $11.900 $10.000 $13.300 $11.880 $10.000
Income from investment operations:
Net investment income (loss)................... 0.238 0.493 0.301 0.177 0.379 0.212
Net realized and unrealized gain (loss)
from investments & foreign currencies......... 0.592 1.572 1.839 0.613 1.606 1.848
------- ------- ------- ------- ------- -------
Net increase (decrease) in net assets from
investment operations......................... 0.830 2.065 2.140 0.790 1.985 2.060
------- ------- ------- ------- ------- -------
Less dividends and distributions:
Dividends from net investment income........... (0.330) (0.385) (0.240) (0.280) (0.295) (0.180)
Distributions from net realized gain on
security transactions......................... (0.050) (0.270) none (0.050) (0.270) none
------- ------- ------- ------- ------- -------
Total dividends and distributions.............. (0.380) (0.655) (0.240) (0.330) (0.565) (0.180)
------- ------- ------- ------- ------- -------
Net asset value, end of period.................. $13.760 $13.310 $11.900 13.760 $13.300 $11.880
======= ======= ======= ======= ======= =======
Total Return(2)................................. 6.44% 18.17% 21.48% 6.11% 17.32% 20.73%
Ratios and supplemental data:
Net assets, end of period (000 omitted)........ $6,073 $11,878 $3,122 $3,546 $4,796 $613
Ratio of expenses to average net assets........ 1.25% 1.25% 1.25% 1.95% 1.95% 1.95%
Ratio of expenses to average net assets
prior to expense limitation................... 2.01% 2.72% 7.55% 2.71% 3.42% 8.25%
Ratio of net investment income to average
net assets.................................... 3.20% 4.13% 4.75% 2.50% 3.43% 4.05%
Ratio of net investment income to average
net assets prior to expense limitation........ 2.44% 2.66% (1.55%) 1.74% 1.96% (2.25%)
Portfolio turnover............................. 68% 34% 57% 68% 34% 57%
Average commission rate paid(3)................ $0.0278 0.0271 NA $0.0278 0.0271 NA
</TABLE>
- -----------------
(1) Date of commencement of trading; ratios and total return have been
annualized.
(2) Does not include maximum sales charge of 4.75% nor the 1% limited
contingent deferred sales charge that would apply in the event of certain
redemptions within 12 months of purchase of A Class shares. Does not include
contingent deferred sales charge which varies from 1-4% depending upon the
holding period for Class B.
(3) Computed by dividing the total amount of commissions paid by the total
number of shares purchased and sold during the period for which there was a
commission charged.
See accompanying notes
1 9 9 7 s e m i - a n n u a l r e p o r t 33
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each period were
as follows:
<TABLE>
<CAPTION>
GLOBAL ASSETS SERIES C CLASS GLOBAL ASSETS SERIES INSTITUTIONAL CLASS
---------------------------------------------------------------------------------
SIX MONTHS YEAR 12/27/94(1) SIX MONTHS YEAR 12/27/94(1)
ENDED ENDED TO ENDED ENDED TO
5/31/97 11/30/96 11/30/95 5/31/97 11/30/96 11/30/95
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period............ $13.250 $11.890 $11.940 $13.340 $11.930 $10.000
Income from investment operations:
Net investment income (loss)................... 0.188 0.446 none 0.232 0.567 0.473
Net realized and unrealized gain (loss)
from investments & foreign currencies......... 0.602 1.534 (0.050) 0.633 1.533 1.697
------- ------- ------- ------- ------- -------
Net increase (decrease) in net assets from
investment operations......................... 0.790 1.980 (0.050) 0.865 2.100 2.170
------- ------- ------- ------- ------- -------
Less dividends and distributions:
Dividends from net investment income........... (0.280) (0.350) none (0.365) (0.420) (0.240)
Distributions from net realized gain on
security transactions......................... (0.050) (0.270) none (0.050) (0.270) none
------- ------- ------- ------- ------- -------
Total dividends and distributions.............. (0.330) (0.620) none (0.415) (0.690) (0.240)
------- ------- ------- ------- ------- -------
Net Asset Value, End of Period.................. $13.710 $13.250 $11.890 $13.790 $13.340 $11.930
======= ======= ======= ======= ======= =======
Total Return(2)................................. 6.13% 17.33% (4) 6.71% 18.38% 21.88%
Ratios and supplemental data:
Net assets, end of period (000 omitted)........ $2,232 $1,185 $5 $2,313 $2,203 $2,191
Ratio of expenses to average net assets........ 1.95% 1.95% (4) 0.95% 0.95% 0.95%
Ratio of expenses to average net assets
prior to expense limitation................... 2.71% 3.42% (4) 1.71% 2.42% 7.25%
Ratio of net investment income to average
net assets.................................... 2.50% 3.43% (4) 3.50% 4.43% 5.05%
Ratio of net investment income to average
net assets prior to expense limitation........ 1.74% 1.96% (4) 2.74% 2.96% 1.25%
Portfolio turnover............................. 68% 34% (4) 68% 34% 57%
Average commission rate paid(3)................ $0.0278 0.0271 NA $0.0278 0.0271 NA
</TABLE>
- -------------------
(1) Date of commencement of trading; ratios and total return have been
annualized.
(2) Does not include contingent deferred sales charge of 1% for the Global
Assets Series C Class.
(3) Computed by dividing the total amount of commissions paid by the total
number of shares purchased and sold during the period for which there was a
commission charged.
(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.
See accompanying notes
34 1 9 9 7 s e m i - a n n u a l r e p o r t
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each period were
as follows:
<TABLE>
<CAPTION>
GLOBAL BOND SERIES A CLASS GLOBAL BOND SERIES B CLASS
---------------------------------------------------------------------------------
SIX MONTHS YEAR 12/27/94(1) SIX MONTHS YEAR 12/27/94(1)
ENDED ENDED TO ENDED ENDED TO
5/31/97 11/30/96 11/30/95 5/31/97 11/30/96 11/30/95
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period............ $11.480 $11.230 $10.000 $11.490 $11.230 $10.000
Income from investment operations:
Net investment income(2)....................... 0.316 0.755 0.659 0.278 0.679 0.565
Net realized and unrealized gain (loss) from
investments & foreign currencies.............. (0.551) 0.730 1.171 (0.548) 0.735 1.205
------- ------- ------- ------- ------- -------
Net increase (decrease) in net assets from
investment operations......................... (0.235) 1.485 1.830 (0.270) 1.414 1.770
------- ------- ------- ------- ------- -------
Less dividends and distributions:
Dividends from net investment income........... (0.455) (0.875) (0.600) (0.420) (0.794) (0.540)
Distributions from net realized gain on
security transactions......................... (0.040) (0.360) none (0.040) (0.360) none
------- ------- ------- ------- ------- -------
Total dividends and distributions.............. (0.495) (1.235) (0.600) (0.460) (1.154) (0.540)
------- ------- ------- ------- ------- -------
Net asset value, end of period.................. $10.750 $11.480 $11.230 $10.760 $11.490 $115
======= ======= ======= ======= ======= =======
Total Return(3)................................. (2.04%) 14.35% 18.79% (2.35%) 13.51% 18.23%
Ratios and supplemental data:
Net assets, end of period (000 omitted)........ $4,600 $3,467 $889 $1,111 $707 $115
Ratio of expenses to average net assets........ 1.25% 1.25% 1.25% 1.95% 1.95% 1.95%
Ratio of expenses to average net assets
prior to expense limitation................... 2.24% 5.00% 12.34% 2.94% 5.70% 13.04%
Ratio of net investment income to average
net assets.................................... 5.81% 6.82% 7.70% 5.11% 6.12% 7.00%
Ratio of net investment income to average
net assets prior to expense limitation........ 4.82% 3.07% (3.39%) 4.12% 2.37% (4.09%)
Portfolio turnover............................. 83% 42% 98% 83% 42% 98%
Average commission rate paid................... NA NA NA NA NA NA
</TABLE>
- -------------------
(1) Date of commencement of trading; ratios have been annualized and total
return has not been annualized.
(2) The year ended November 30, 1996 and the six months ended May 31,1997 per
share information was based on the average shares outstanding method.
(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
depending upon the holding period.
See accompanying notes
1 9 9 7 s e m i - a n n u a l r e p o r t 35
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each period were
as follows:
<TABLE>
<CAPTION>
GLOBAL BOND SERIES C CLASS GLOBAL BOND SERIES INSTITUTIONAL CLASS
---------------------------------------------------------------------------------
SIX MONTHS YEAR 12/27/94(2) SIX MONTHS YEAR 12/27/94(1)
ENDED ENDED TO ENDED ENDED TO
5/31/97 11/30/96 11/30/95 5/31/97 11/30/96 11/30/95
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period............ $11.440 $11.240 $11.330 $11.520 $11.270 $10.000
Income from investment operations:
Net investment income(3)....................... 0.279 0.680 none 0.332 0.788 0.782
Net realized and unrealized gain (loss) from
investments & foreign currencies.............. (0.559) 0.719 (0.036) (0.552) 0.732 1.088
------- ------- ------- ------- ------- -------
Net increase (decrease) in net assets from
investment operations......................... (0.280) 1.399 (0.036) (0.220) 1.520 1.870
------- ------- ------- ------- ------- -------
Less dividends and distributions:
Dividends from net investment income........... (0.420) (0.839) (0.054) (0.490) (0.910) (0.600)
Distributions from net realized gain on
security transactions......................... (0.040) (0.360) none (0.040) (0.360) none
------- ------- ------- ------- ------- -------
Total dividends and distributions.............. (0.460) (1.199) (0.054) (0.530) (1.270) (0.600)
------- ------- ------- ------- ------- -------
Net asset value, end of period.................. $10.700 $11.440 $11.240 $10.770 $11.520 $11.270
======= ======= ======= ======= ======= =======
Total Return(4)................................. (2.45%) 13.51% (5) (1.89%) 14.68% 19.21%
Ratios and supplemental data:
Net assets, end of period (000 omitted)........ $594 $118 $5 $ 9,249 $ 6.707 $ 897
Ratio of expenses to average net assets........ 1.95% 1.95% (5) 0.95% 0.95% 0.95%
Ratio of expenses to average net assets prior
to expense limitation......................... 2.94% 5.70% (5) 1.94% 4.70% 12.04%
Ratio of net investment income to average
net assets.................................... 5.11% 6.12% (5) 6.11% 7.12% 8.00%
Ratio of net investment income to average
net assets prior to expense limitation........ 4.12% 2.37% (5) 5.12% 3.37% (3.09%)
Portfolio turnover............................. 83% 42% (5) 83% 42% 98%
Average commission rate paid................... NA NA NA NA NA NA
</TABLE>
- ------------------
(1) Date of commencement of trading; ratios have been annualized and total
return has not been annualized.
(2) Date of commencement of trading.
(3) The year ended November 30, 1996 and the six months ended May 31,1997 per
share information was based on the average shares outstanding method.
(4) Does not include the contingent deferred sales charge of 1% for the Global
Bond 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.
See accompanying notes
36 1 9 9 7 s e m i - a n n u a l r e p o r t
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
Selected data for each share of the Fund outstanding throughout each period were
as follows:
<TABLE>
<CAPTION>
EMERGING MARKETS SERIES EMERGING MARKETS SERIES
A CLASS B CLASS
----------------------------------------------------------
SIX MONTHS 6/10/96(1) SIX MONTHS 6/10/96(1)
ENDED TO ENDED TO
5/31/97 11/30/96 5/31/97 11/30/96
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value, beginning of period.... $9.970 $10.000 $9.940 $10.000
Income from investment operations:
Net investment income (loss)(2)........ 0.030 0.018 0.033 (0.051)
Net realized and unrealized
gain (loss) from investments &
foreign currencies.................... 2.085 (0.048) 2.042 (0.009)
------- ------- ------- -------
Net increase (decrease) in net assets
from investment operations............ 2.115 (0.030) 2.075 (0.060)
------- ------- ------- -------
Less dividends and distributions:
Dividends from net investment
income................................ (0.010) none none none
Distributions from net realized gain
on security transactions.............. (0.075) none (0.075) none
------- ------- ------- -------
Total dividends and distributions...... (0.085) none (0.075) none
------- ------- ------- -------
Net asset value, end of period.......... $12.000 $9.970 $11.940 $9.940
======= ======= ======= =======
Total Return(3)......................... 21.40% (0.30%) 21.03% (0.60%)
Ratios and supplemental data:
Net assets, end of period
(000 omitted)......................... $9,360 $2,518 $2,428 $282
Ratio of expenses
to average net assets................. 2.00% 2.00% 2.70% 2.70%
Ratio of expenses to average net assets
prior to expense limitation........... 3.61% 4.10% 4.31% 4.80%
Ratio of net investment income to
average net assets.................... 0.54% 0.17% (0.16%) (0.53%)
Ratio of net investment income to
average net assets prior to
expense limitation.................... (1.07%) (1.93%) (1.77%) (2.63%)
Portfolio turnover..................... 15% 36% 15% 36%
Average commission rate paid(4)........ $0.0032 $0.0073 $0.0032 $0.0073
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EMERGING MARKETS SERIES EMERGING MARKETS SERIES
C CLASS INSTITUTIONAL CLASS
---------------------------------------------------------
SIX MONTHS 6/10/96(1) SIX MONTHS 6/10/96(1)
ENDED TO ENDED TO
5/31/97 11/30/96 5/31/97 11/30/96
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value, beginning of period.... $9.940 $10.000 $9.990 $10.000
Income from investment operations:
Net investment income (loss)(2)........ (0.008) (0.051) 0.020 0.047
Net realized and unrealized
gain (loss) from investments &
foreign currencies.................... 2.083 (0.009) 2.130 (0.057)
------- ------- ------- -------
Net increase (decrease) in net assets
from investment operations............ 2.075 (0.060) 2.150 (0.010)
------- ------- ------- -------
Less dividends and distributions:
Dividends from net investment
income................................ none none (0.025) none
Distributions from net realized gain
on security transactions.............. (0.075) none (0.075) none
------- ------- ------- -------
Total dividends and distributions...... (0.075) none (0.100) none
------- ------- ------- -------
Net asset value, end of period.......... $11.940 $9.940 $12.040 $9.990
======= ======= ======= =======
Total Return(3)......................... 21.03% (0.60%) 21.74% (0.10%)
Ratios and supplemental data:
Net assets, end of period
(000 omitted)......................... $880 $199 $1,859 $3,717
Ratio of expenses
to average net assets................. 2.70% 2.70% 1.70% 1.70%
Ratio of expenses to average net assets
prior to expense limitation........... 4.31% 4.80% 3.31% 3.80%
Ratio of net investment income to
average net assets.................... (0.16%) (0.53%) 0.84% 0.47%
Ratio of net investment income to
average net assets prior to
expense limitation.................... (1.77%) (2.63%) (0.77%) (1.63%)
Portfolio turnover..................... 15% 36% 15% 36%
Average commission rate paid(4)........ $0.0032 $0.0073 $0.0032 $0.0073
</TABLE>
- --------------------
(1) Date of commencement of trading; ratios have been annualized and total
return has not been annualized.
(2) The year ended November 30, 1996 per share information was based on the
average shares outstanding method.
(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) Computed by dividing the total amount of commissions paid by the total
number of shares purchased and sold during the period for which there was a
commission charged.
See accompanying notes
1 9 9 7 s e m i - a n n u a l r e p o r t 37
<PAGE>
DELAWARE GROUP GLOBAL & INTERNATIONAL FUNDS, INC. --
NOTES TO FINANCIAL STATEMENTS --
MAY 31, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
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. 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.
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 generally accepted
accounting principles and are consistently followed by the Fund.
Security Valuation - Securities listed on an exchange are valued at the lasted
quoted sales price as of the close of the NYSE on the valuation date. Securities
not traded or 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 sales price before the Fund is valued. Long-term debt
securities are valued by an independent pricing service and such prices are
believed to reflect the fair value of such securities. Money market instruments
having less than 60 days to maturity are valued at amortized cost which
approximates market value. Other securities and assets for which market
quotations are not readily available are valued at fair value as determined in
good faith by or under the direction of the Fund's Board of Directors.
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 has been made in the
financial statements. Income and capital gain distributions are determined in
accordance with federal income tax regulations which may differ from generally
accepted accounting principles.
Class Accounting - Investment income, common expenses and realized and
unrealized gain (loss) on investments are allocated to the various classes of
the Series on the basis of daily net assets of each class. Distribution expenses
relating to a specific class are charged directly to that class.
Repurchase Agreements - Each Series may invest in a pooled cash account along
with other members of the Delaware Group of Funds. The aggregate daily balance
of the pooled cash account is invested in repurchase agreements secured by
obligations of the
<PAGE>
U.S. government. The respective collateral is held by the custodian bank until
the maturity of the respective repurchase agreements. Each repurchase agreement
is at least 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.
Foreign Currency Transactions - Transactions denominated in foreign currencies
are recorded at the current prevailing exchange rates. The value of all assets
and liabilities denominated in foreign currencies are translated into U.S.
dollars at the exchange rate of such currencies against the U.S. dollar as of
3:00 PM EST. Transaction gains or losses resulting from changes in exchange
rates during the reporting period or upon settlement of the foreign currency
transaction are reported in operations for the current period. It is not
practical to isolate that portion of both realized and unrealized gains and
losses on investments in equity securities in the statement of operations that
result from fluctuations in foreign currency exchange rates. The Funds do
isolate that portion of gains and losses on investments in debt securities which
are due to changes in the foreign exchange rate from that which are due to
changes in market prices of debt securities. The Series reports certain foreign
currency related transactions as components of realized gains for financial
reporting purposes, whereas such components are treated as ordinary income
(loss) for federal income tax purposes.
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 purchased or sold
(trade date). Costs used in calculating realized gains and losses on the sale of
investment securities are those of the specific securities sold. Dividend income
is recorded on the ex-dividend date and interest income is recorded on the
accrual basis. Foreign dividends are also recorded on the ex-dividend date or as
soon after the ex-dividend date that the Funds are aware of such dividends, net
of all non-rebatable tax withholdings. Original issue discounts are accreted to
interest income over the lives of the respective securities. Withholding taxes
on foreign dividends have been provided for in accordance with the Fund's
understanding of the applicable country's tax rules and rates. The Series
declares and pays dividends from net investment income and capital gains
annually.
Certain Fund expenses are paid through "soft dollar" arrangements with brokers.
The amount of these expenses is less than 0.01% of the Fund's average daily net
assets.
Use of Estimates - The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
2. Investment Management and Other Transactions with Affiliates 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 on the average daily net assets of each Series less
the fees paid to the unaffiliated directors of the International Equity Series,
the Global Assets Series and the Global Bond Series. The management fee for the
Emerging Markets Series are calculated daily on the net assets without
consideration of amounts paid to unaffiliated 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' investment in U.S. securities.
DMC will receive from DIAL 25% of the investment management fees and other
expenses for the Global Assets Series. The management fee rates are as follows:
38 1997 semi-annual report
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL GLOBAL GLOBAL EMERGING
EQUITY ASSETS BOND MARKETS
SERIES SERIES SERIES SERIES
------------- ------ ------ ------
<S> <C> <C> <C> <C>
Management fee as a
percentage of average
daily net assets (per annum). . . . . . 0.75% 0.75% 0.75% 1.25%
</TABLE>
DIAL have elected to waive their fees and reimburse each Series to the extent
that annual operating expenses exclusive of taxes, interest, brokerage
commissions and extraordinary expenses, 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, of
the average daily net assets for each Series through November 30, 1997. Total
expenses absorbed by and DIAL for the six months ended May 31, 1997 are as
follows:
<TABLE>
<CAPTION>
INTERNATIONAL GLOBAL GLOBAL EMERGING
EQUITY ASSETS BOND MARKETS
SERIES SERIES SERIES SERIES
------------- ------ ------ ------
<S> <C> <C> <C> <C>
Total expenses absorbed by DIAL . . . . $12,818 $69,182 $65,258 $77,305
</TABLE>
The Fund has engaged Delaware Service Company, Inc. (DSC), an affiliate of DMC,
to serve as dividend disbursing and transfer agent for the Fund. Effective
August 19, 1996, the Fund also engaged DSC to provide accounting services for
the Series. Previously, Fund personnel provided this service and the related
costs were recorded in salaries and other expense categories in the statement of
operations. For the six months ended May 31, 1997, the amounts expensed for each
Series were as follows:
<TABLE>
<CAPTION>
INTERNATIONAL GLOBAL GLOBAL EMERGING
EQUITY ASSETS BOND MARKETS
SERIES SERIES SERIES SERIES
------------- ------ ------ ------
<S> <C> <C> <C> <C>
Dividend disbursing, transfer agent
fees and other expenses . . . . . . $357,865 $31,499 $14,920 $16,445
Accounting fees. . . . . . . . . . . 25,028 2,702 2,058 889
</TABLE>
On May 31, 1997, the Fund had payables to affiliates as follows:
<TABLE>
<CAPTION>
INTERNATIONAL GLOBAL GLOBAL EMERGING
EQUITY ASSETS BOND MARKETS
SERIES SERIES SERIES SERIES
------------- ------ ------ ------
<S> <C> <C> <C> <C>
Investment Management fee payable to
DIAL . . . . . . . . . . . . . . . $213,981 $ -- $ -- $ --
Dividend disbursing, transfer agent
fees, accounting fees and other
expenses payable to DSC. . . . . . 23,603 43,585 10,335 28,823
Other expenses payable to DMC and
affiliates . . . . . . . . . . . . 2,852 2,660 -- --
</TABLE>
Pursuant to the Distribution Agreement, the Fund pays Delaware Distributors,
L.P. (DDLP), the Distributor and an affiliate of DMC, an annual fee not to
exceed 0.30% of the average daily net assets of the A Class and 1.00% of the
average daily net assets of the B and C Class for each Series. For the six
months ended May 31, 1997, DDLP earned commissions on sales of the Fund A Class
shares for each Series as follows:
<PAGE>
<TABLE>
<CAPTION>
INTERNATIONAL GLOBAL GLOBAL EMERGING
EQUITY ASSETS BOND MARKETS
SERIES SERIES SERIES SERIES
------------- ------ ------ ------
<S> <C> <C> <C> <C>
$49,061 $47,462 $5,142 $5,756
</TABLE>
Certain officers of DMC, DSC and DDLP are officers, directors and/or employees
of the Fund. These officers, directors and employees are paid no compensation by
the Fund.
1997 semi-annual report 39
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
- --------------------------------------------------------------------------------
3. Investments
During the six months ended May 31, 1997, the Fund made purchases and sales of
investment securities other than U.S. government securities and temporary cash
investments for each Series as follows:
<TABLE>
<CAPTION>
INTERNATIONAL GLOBAL GLOBAL EMERGING
EQUITY ASSETS BOND MARKETS
SERIES SERIES SERIES SERIES
------------- ------ ------ ------
<S> <C> <C> <C> <C>
Purchases . . . . . . . . . . . . . $43,566,505 $5,554,917 $9,685,071 $6,060,319
Sales . . . . . . . . . . . . . . . 2,725,986 10,509,185 5,024,599 687,888
</TABLE>
At May 31, 1997, the aggregate cost of securities and unrealized appreciation
(depreciation) for federal income tax purposes for each Series were as follows:
<TABLE>
<CAPTION>
INTERNATIONAL GLOBAL GLOBAL EMERGING
EQUITY ASSETS BOND MARKETS
SERIES SERIES SERIES SERIES
------------- ------ ------ ------
<S> <C> <C> <C> <C>
Cost of Investments . . . . . . . . $154,183,093 $12,556,198 $15,401,853 $13,313,952
============ =========== =========== ===========
Aggregate unrealized appreciation . 36,448,163 1,728,319 170,021 2,138,697
Aggregate unrealized depreciation . (3,616,286) (160,465) (362,254) (569,367)
------------ ----------- ----------- -----------
Net unrealized appreciation
(depreciation) . . . . . . . . . . $32,831,877 $1,567,854 ($192,233) $1,569,330
=========== ========== =========== ===========
</TABLE>
4. Capital Stock
Transactions in capital stock shares were as follows:
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY SERIES GLOBAL ASSETS SERIES GLOBAL BOND SERIES EMERGING MARKET SERIES
--------------------------- -------------------- ------------------ ----------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS 6/10/96*
ENDED ENDED ENDED ENDED ENDED ENDED ENDED TO
5/31/97 11/30/96 5/31/97 11/30/96 5/31/97 11/30/96 5/31/97 11/30/96
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold:
A Class. . . . . . . . 2,931,751 2,918,393 176,513 691,976 166,550 269,530 577,633 347,106
B Class. . . . . . . . 743,230 491,774 93,168 331,355 54,289 54,768 176,283 28,337
C Class. . . . . . . . 289,563 136,101 76,098 93,322 44,176 9,529 53,537 21,568
Institutional Class. . 1,083,254 1,980,425 8,440 27,341 291,340 623,108 117,642 376,121
Shares issued upon
reinvestment of dividends
from net investment income
and net realized gains
from security
transactions: . . . .
A Class . . . . . . . 167,170 169,454 23,605 23,328 13,686 14,232 2,273 -
B Class . . . . . . . 16,473 8,890 8,335 5,419 2,406 2,094 211 -
C Class . . . . . . . 3,237 237 2,456 725 1,312 359 156 -
Institutional Class . 71,788 41,888 5,317 10,755 33,550 16,587 3,734 -
--------- --------- ------- --------- ------- ------- ------- -------
5,306,466 5,747,162 393,932 1,184,221 607,309 990,207 931,469 773,132
--------- --------- ------- --------- ------- ------- ------- -------
Shares repurchased:
A Class. . . . . . . (1,902,383) (2,103,224) (651,547) (85,002) (54,473 (60,913) (52,605) (94,511)
B Class. . . . . . . (68,058) (39,613) (204,469) (27,670) (14,967) (5,494) (1,479) -
C Class. . . . . . . (34,572) (5,431) (5,206) (5,032) (283) (23) (84) (1,503)
Institutional Class. (369,226) (649,384) (11,046) (56,667) (48,275) (136,850) (338,860) (4,154)
--------- --------- ------- --------- ------- ------- ------- -------
(2,374,239) (2,797,652) (872,268) (174,371) (117,998) (203,280) (393,028) (100,168)
--------- --------- ------- --------- ------- ------- ------- -------
Net Increase (Decrease). 2,932,227 2,949,510 (478,336) 1,009,850 489,311 786,927 538,441 672,964
========= ========= ======= ========= ======= ======= ======= =======
</TABLE>
- --------------------------
*Date of initial public offering
40 1997 semi-annual report
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
- --------------------------------------------------------------------------------
5. Lines of Credit
The Fund has a committed line of credit for $6.8 million for the International
Equity Series, $1 million for the Global Assets Series, $200,000 for the Global
Bond Series and $400,000 for the Emerging Markets Series. No amount was
outstanding at May 31, 1997, or at any time during the fiscal year.
6. Foreign Exchange Contracts
The Fund will generally enter into forward foreign currency contracts as a way
of managing foreign exchange rate risk. A fund may enter into these contracts to
fix the U.S. dollar value of a security that it has agreed to buy or sell for
the period between the date the trade was entered into and the date the security
is delivered and paid for. A fund may also use these contracts to hedge the U.S.
dollar value of securities it already owns denominated in foreign currencies.
Forward foreign currency contracts are valued at the mean between the bid and
asked prices of the contracts and are marked-to-market daily. Interpolated
values are derived when the settlement date of the contract is an interim date
for which quotations are not available. The change in market value is recorded
by the Fund as an unrealized gain or loss. When the contract is closed, the Fund
records a realized gain or loss equal to the difference between the value of the
contract at the time it was opened and the value at the time it was closed.
The use of forward foreign currency contracts does not eliminate fluctuations in
the underlying prices of the Fund's securities, but it does establish a rate of
exchange that can be achieved in the future. Although forward foreign currency
contracts limit the risk of loss due to a decline in the value of the hedged
currency, they also limit any potential gain that might result should the value
of the currency increase. In addition, the Fund could be exposed to risks if the
counter parties to the contracts are unable to meet the terms of their
contracts.
The following forward foreign currency contracts were outstanding at May 31,
1997 for each of the Series:
<TABLE>
<CAPTION>
Unrealized
Contracts to In Exchange Contract Settlement Appreciation
International Equity Series Deliver For Value Date (Depreciation)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
14,097,000 Dutch Guilders $7,400,000 $7,395,210 8/29/97 $4,790
42,365,000 French Francs 7,400,000 7,399,773 8/29/97 227
7,906,977 New Zealand Dollars 5,440,000 5,437,127 8/29/97 2,873
------
$7,890
======
</TABLE>
<TABLE>
<CAPTION>
Unrealized
Contracts to In Exchange Contract Settlement Appreciation
Deliver For Value Date (Depreciation)
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
31,514,058 Belgian Francs $901,690 $895,604 6/2/97 ($6,086)
======
</TABLE>
<TABLE>
<CAPTION>
Unrealized
Contracts to In Exchange Contract Settlement Appreciation
Global Bond Series Deliver For Value Date (Depreciation)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
890,000 Canadian Dollars $647,723 $650,316 8/29/97 ($3,043)
2,600,000 New Zealand Dollars $1,788,020 $1,787,855 8/29/97 165
------
($2,878)
======
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Unrealized
Contracts to In Exchange Contract Settlement Appreciation
Emerging Markets Series Deliver For Value Date (Depreciation)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
560,877 Czech Korunas $17,295 $17,191 6/2/1997 $104
------
</TABLE>
<TABLE>
<CAPTION>
Unrealized
Contracts to In Exchange Contract Settlement Appreciation
Deliver For Value Date (Depreciation)
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
531,292 Hong Kong Dollars $68,589 $68,566 6/2/1997 ($23)
294,942 South African Rand 66,012 65,980 6/3/1997 (32)
276,999 Malaysian Riggit 110,248 110,161 6/9/1997 (87)
------
($142)
======
</TABLE>
1997 semi-annual report 41
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
- --------------------------------------------------------------------------------
7. Concentrations of Credit Risk
Some countries in which the Funds may invest require governmental approval for
the repatriation of investment income, capital or the proceeds of sales of
securities by foreign investors. In addition, if there is a deterioration in a
country's balance of payments or for other reasons, a country may impose
temporary restrictions on foreign capital remittances abroad.
The securities exchanges of certain foreign markets are substantially smaller,
less liquid and more volatile than the major securities markets in the United
States. Consequently, acquisition and disposition of securities by the Fund may
be inhibited. In addition, a significant proportion of the aggregate market
value of equity securities listed on the major securities exchanges in emerging
markets are held by a smaller number of investors. This may limit the number of
shares available for acquisition or disposition of the Fund.
The Fund may invest in high-yield fixed income securities which carry ratings of
BB or lower by S&P and/or Ba or lower by Moody's. Investments in these higher
yielding securities 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.
The Fund may invest in securities whose value is derived from an underlying pool
of mortgages or consumer loans. Prepayment of these loans may shorten the stated
maturity of the respective obligation and may result in a loss of premium, if
any has been paid.
With the exception of the Emerging Markets Series, each series may invest up to
10% of its total assets in illiquid securities which may include securities with
contractual restrictions on resale, securities exempt from registration under
Rule 144A of the Securities Act of 1933, as amended, and other securities which
may not be readily marketable. The 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, if any, have been denoted in the Statement of Net Assets.
42 1997 semi-annual report
<PAGE>
DELAWARE GROUP OF FUNDS
For Growth of Capital
Aggressive Growth Fund
Trend Fund
DelCap Fund
Small Cap Value Fund
U.S. Growth Fund
Tax-Efficient Equity Fund
Growth Stock Fund
For Total Return
Quantum Fund
Blue Chip Fund
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
U.S. Government Fund
U.S. Government Securities Fund
Limited-Term Government Fund
For Tax-Exempt Current Income
National High Yield Municipal Bond Fund
Tax-Free USA Fund
Tax-Free Insured Fund
Tax-Free USA Intermediate Fund
State Tax-Free Funds*
Money Market Funds
Delaware Cash Reserve
U.S. Government Money Fund
Tax-Free Money Fund
* Available for the following states: AZ, CA, CO, FL, ID, IA, KS, MN, MO,
NM, NY, ND, OR, PA, UT, WA, WI.
funds
<PAGE>
THIS SEMI-ANNUAL REPORT IS FOR THE INFORMATION OF GLOBAL & INTERNATIONAL FUND
SHAREHOLDERS, BUT IT MAY BE USED WITH PROSPECTIVE INVESTORS WHEN PRECEDED OR
ACCOMPANIED BY A CURRENT PROSPECTUS FOR GLOBAL & INTERNATIONAL FUND, WHICH SETS
FORTH DETAILS ABOUT CHARGES, EXPENSES, INVESTMENT OBJECTIVES AND OPERATING
POLICIES OF THE FUND. INTERNATIONAL INVESTING HAS SPECIAL RISKS THAT INCLUDE
LESS STABLE ECONOMIES AND GOVERNMENTS, CURRENCY FLUCTUATIONS AND DIFFERENT
ACCOUNTING STANDARDS. 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. THE RETURN AND PRINCIPAL
VALUE OF AN INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED,
MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
INVESTMENT MANAGER
Delaware Management Company, Inc.
Philadelphia, Pennsylvania
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
FOR SHAREHOLDERS
1.800.523.1918
FOR SECURITIES DEALERS
1.800.362.7500
FOR FINANCIAL INSTITUTIONS
REPRESENTATIVES
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 the principal amount
invested. 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
(6735)
SA-034 [5/97] PP7/97
