<PAGE>
January 7, 1998
Dear Shareholder:
Delaware Group Global & International Funds, Inc. - Global Equity Fund
began operations during a difficult period for international and large-cap
domestic stocks, and the Fund's returns mirrored the challenges of a volatile
market environment.
From its inception on July 22, 1997 through November 30, 1997, your Fund
provided a total return of -3.18% (capital change plus reinvested dividends at
net asset value). While these short-term results are disappointing, your Fund
preserved capital to a greater extent than the unmanaged Morgan Stanley World
Index, which lost 4.53% of its value during the period.
The Fund invests in a combination of U.S. stocks and stocks in
established overseas markets using a consistent global discipline. During fiscal
1997, commercial bank stocks in the U.S. provided positive results. However,
this was offset by weakness in many of our overseas selections, particularly
outside of Europe. As of November 30, 1997, foreign stocks represented 59% of
your Fund's net assets, and were selling at prices that, on average, were about
8% less than our purchase prices.
Strategic Positioning & Outlook
Delaware International uses an income-oriented and inflation-savvy
method of evaluating stocks across the world. We believe this approach could be
especially effective in 1998. This strategy, known as a dividend discount model,
led us to underweight some troubled Pacific Rim markets such as Japan, and that
helped your Fund preserve principal since the summer.
In the U.S., economic indicators remain positive. Despite the lowest
unemployment rate since before the first oil crisis of the 1970s, inflation has
remained modest, just 1.8% for the 12 months ended November 30, 1997. This has
provided a healthy climate for financial assets, especially interest-rate
sensitive companies such as banks.
In addition, many U.S. industrial companies are finding new ways to
boost profits through new technology, mergers and restructuring. Our investment
research continues to lead us to undervalued multinational companies with
promising product pipelines.
This contrasts sharply with the Pacific Rim. The financial crisis in
Japan has continued to undermine economic growth while the devaluation of Asian
currencies has resulted in a significant deterioration in value throughout Asia.
Against this backdrop, we plan to underweight the Japanese and Asian Pacific Rim
markets in 1998.
In their place, we are focusing on those markets we consider
significantly undervalued: the United Kingdom, Australia and New Zealand. We are
also taking a very selective approach to Continental Europe, where Delaware is
seeking to identify stocks poised to do well as the region draws closer to
monetary union.
We thank you for becoming Global Equity Fund's charter shareholders.
As of November 30, the Fund had $2.9 million in net assets.
Wayne A. Stork Robert Arnold, domestic stocks
Chairman Delaware Management Company
Jeffrey J. Nick Elizabeth A. Desmond, overseas stocks
President and Chief Executive Officer Delaware International
AR-169[12/97]1/98
<PAGE>
Global Equity Fund Performance
Growth of a $10,000 Investment
July 22, 1997 to November 30, 1997
Global Equity Fund (A & Institutional Classes, excluding sales charges)
Global Equity Fund (A Class, including sales charges)
Morgan Stanley World Index
<TABLE>
<CAPTION>
Global Equity Fund A
& Institutional Classes Global Equity Fund A Morgan Stanley
Excluding Sales Charge Class Including Sales Charge World Index
<S> <C> <C> <C>
7/22/97 $10,000 $9,525 $10,000
8/31/97 $ 9,612 $9,159 $ 9,333
9/30/97 $10,247 $9,765 $ 9,841
10/31/97 $ 9,588 $9,137 $ 9,325
11/30/97 $ 9,682 $9,226 $ 9,491
</TABLE>
Chart assumes $10,000 invested on July 22, 1997 and reinvestment of
distributions. The maximum sales charge for A Class shares is 4.75%. Shares may
be purchased at net asset value under certain circumstances. Class A shares have
a 12b-1 fee of 0.30% that has been waived since inception. A voluntary expense
cap of 0.80% has been in effect. The unmanaged Morgan Stanley World Index
includes U.S. stocks. Returns are in U.S. dollars.
Global Equity Fund Performance
Cumulative Total Return (July 22, 1997 To November 30, 1997)
Lifetime
Class A
Excluding Sales Charge -3.18%
Including Sales Charge -7.74%
Institutional Class -3.18%
Global Equity Fund invests in international stocks, which involves greater risks
than investing in U.S. stocks. Return and share value will fluctuate with rising
and falling interest rates so that shares when redeemed may be worth more or
less than the original cost. All results include reinvestment of distributions.
Past performance is not a guarantee of future results.
<PAGE>
Delaware Group Global & International Funds, Inc -
Global Equity Series
Statement of Net Assets
November 30, 1997
Market
Number Value
of shares (U.S. $)
------------- -----------
COMMON STOCK - 96.25%
Australia - 7.90%
Amcor Limited 11,410 50,895
CSR Limited 19,460 63,611
Foster's Brewing Group 31,440 58,023
National Australia Bank 3,920 51,709
Telstra 3,099 5,550
----------
229,788
----------
Belgium - 2.69%
Electrabel 350 78,265
----------
78,265
----------
France 5.24%
Alcatel Alsthom 200 25,059
Compagnie de Saint Gobain 250 33,948
Elf Aquitaine 502 58,222
Societe Generale 268 35,212
----------
152,441
----------
Germany - 6.18%
Bayer 1,460 53,828
Rheinisch Westfaelisches Elek 1,180 57,935
Siemens 1,150 68,132
----------
179,895
----------
Hong Kong - 1.74%
Hong Kong Electric 9,500 32,137
Wharf (Holdings) Limited 9,000 18,337
----------
50,474
----------
Indonesia - 0.11%
PT Bank Internasional 25,500 3,309
----------
3,309
----------
Japan - 3.32%
Canon Electronics 1,000 24,095
Eisai 1,000 14,551
Koito Manufacturing 5,000 25,152
West Japan Railway 10 32,857
----------
96,655
----------
Malaysia - 0.52%
Sime Darby Berhad 15,000 14,957
----------
14,957
----------
Netherlands - 1.38%
Royal Dutch Petroleum 770 40,078
----------
40,078
----------
New Zealand - 3.40%
Carter Holt Harvey 20,160 29,188
Telecom Corporation of New Zealand 13,620 69,815
----------
99,003
----------
Singapore - 1.24%
Jardine Matheson Holdings Limited 6,800 36,040
----------
36,040
----------
See accompanying notes
<PAGE>
GLOBAL EQUITY SERIES
STATEMENT OF NET ASSETS (CONTINUED)
Market
Number Value
of shares (U.S. $)
------------- -----------
COMMON STOCK (CONTINUED)
Spain - 2.18%
Iberdrola 2,420 $ 30,930
Telefonica de Espana 1,130 32,600
------------
63,530
------------
United Kingdom - 23.11%
Associated British Food 4,500 41,575
Bass 5,270 75,481
Blue Circle Industries 10,251 59,300
Boots 6,000 88,267
Cable & Wireless 7,880 69,408
Glaxo Wellcome 3,660 84,999
GKN 4,420 96,527
PowerGen 7,000 90,801
Taylor Woodrow 22,500 66,124
------------
672,482
------------
United States - 37.24%
American Home Products 700 48,913
Aon 600 31,763
Bausch & Lomb 1,000 39,625
Baxter International 700 35,438
Chase Manhattan 600 65,175
CoreStates Financial 500 38,656
Eastman Kodak 800 48,500
Eaton 500 47,219
Federal National Mortgage 900 47,531
Frontier 1,800 44,100
General Motors 900 54,900
Heinz (H.J.) 800 40,050
May Department Stores 1,000 53,750
McGraw-Hill 800 54,750
Mellon Bank 1,000 56,688
Olin 1,100 54,450
Philip Morris 1,000 43,500
Pitney Bowes 800 67,250
Summit Bancorp 1,500 69,938
Ultramar Diamond Shamrock 1,400 42,613
Union Pacific 900 54,000
USX-Marathon Group 1,300 44,525
------------
1,083,334
------------
Total Common Stock (cost $2,920,513 ) 2,800,251
============
Principal
Amount
---------
REPURCHASE AGREEMENTS - 3.40%
With PaineWebber 5.68% 12/01/97
(dated 11/28/97, collateralized by $32,000
U.S. Treasury Notes 6.25% due 06/30/98
market value $33,340) $ 33,000 $ 33,000
See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
GLOBAL EQUITY SERIES Market
STATEMENT OF NET ASSETS (CONTINUED) Principal Value
Amount (U.S. $)
---------- ----------
<S> <C> <C>
REPURCHASE AGREEMENTS
With J.P. Morgan Securities 5.70% 12/01/97
(dated 11/28/97, collateralized by $12,000
U.S. Treasury Notes 5.125% due 04/30/98
market value $12,417 and $21,000 U.S. Treasury
Notes 5.125% due 02/28/98 market value $20,907) 33,000 33,000
With Chase Manhattan 5.68% 12/01/97
(dated 11/28/97, collateralized by $33,000
U.S. Treasury Notes 8.25% due 07/15/98
market value $34,418) 33,000 33,000
----------
Total Repurchase Agreements (cost $99,000) 99,000
----------
TOTAL MARKET VALUE OF SECURITIES - 99.65%
(cost $3,019,513) $2,899,251
RECEIVABLES AND OTHER ASSETS NET OF LIABILITIES - 0.35% 10,126
----------
NET ASSETS APPLICABLE TO 353,683 SHARES
($.01 PAR VALUE) OUTSTANDING - 100.00% $2,909,377
==========
NET ASSET VALUE - GLOBAL EQUITY SERIES A CLASS
($6,091 / 740 shares) $ 8.23
===========
NET ASSET VALUE - GLOBAL EQUITY SERIES INSTITUTIONAL CLASS
($2,903,286 / 352,943 shares) $ 8.23
===========
COMPONENTS OF NET ASSETS AT NOVEMBER 30, 1997:
Common stock, $.01 par value, 200,000,000 shares
authorized to the Series with 100,000,000 shares allocated to Global Equity
Series A Class, 25,000,000 shares allocated to Global Equity Series B
Class, 25,000,000 shares allocated to Global Equity Series C Class and
50,000,000 shares allocated to Global Equity Series Institutional Class $3,006,317
Undistributed net investment income 31,877
Accumulated net realized gain on investments (8,445)
Net unrealized depreciation of investments (120,372)
----------
Total net assets $2,909,377
==========
* Non income producing securities.
** Undistributed net investment income includes net realized gain on foreign
currencies.
NET ASSET VALUE AND OFFERING PRICE PER SHARE -
GLOBAL EQUITY SERIES
Net asset value A Class (A) $ 8.23
Sales charge (4.75% of offering price or 4.98% of the amount invested per share)(B) 0.41
----------
Offering price $ 8.64
==========
</TABLE>
(A) Net asset value per share, as illustrated, is the estimated amount which
would be paid upon redemption or repurchase of shares.
(B) See Buying Shares in the current prospectus for purchases of $100,000 or
more.
See accompanying notes
<PAGE>
DELAWARE GROUP GLOBAL & INTERNATIONAL FUNDS, INC -
GLOBAL EQUITY SERIES
STATEMENT OF OPERATIONS
FOR THE PERIOD JULY 22, 1997* TO NOVEMBER 30, 1997
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest $ 5,722
Dividends 23,776
Foreign tax withheld (983) $ 28,515
---------- -----------
EXPENSES:
Management fees 8,529
Custodian fees 3,414
Registration fees 3,177
Professional fees 2,077
Accounting fees and salaries 827
Reports and statements to shareholders 539
Dividend disbursing and transfer agent fees and expenses 475
Directors' fees 388
Taxes (other than taxes on income) 232
Other 277
----------
19,935
Less expenses absorbed by Delaware International
Advisers Ltd (11,404) 8,531
---------- -----------
NET INVESTMENT INCOME 19,984
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on:
Investment transactions (8,445)
Foreign currencies 11,893
-----------
Net realized gain 3,448
Net unrealized depreciation of investment and foreign currencies during the period (120,372)
-----------
NET REALIZED AND UNREALIZED LOSS
ON INVESTMENTS AND FOREIGN CURRENCIES (116,924)
-----------
NET (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $ (96,940)
===========
</TABLE>
- ------------
*Date of commencement of trading.
See accompanying notes
<PAGE>
DELAWARE GROUP GLOBAL & INTERNATIONAL FUNDS, INC-
GLOBAL EQUITY SERIES
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD JULY 22, 1997* TO NOVEMBER 30, 1997
<TABLE>
<S> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income $ 19,984
Net realized gain on investments and foreign currencies 3,448
Net unrealized depreciation of investments and foreign currencies during the period (120,372)
-----------
Net decrease in net assets resulting from operations (96,940)
-----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold:
Global Equity Series A Class 6,308
Global Equity Series Institutional Class 3,000,009
-----------
3,006,317
Cost of shares repurchased:
Global Equity Series A Class --
Global Equity Series Institutional Class --
-----------
--
-----------
Increase in net assets derived from capital
share transactions 3,006,317
-----------
NET INCREASE IN NET ASSETS 2,909,377
NET ASSETS:
Beginning of period --
-----------
End of period $ 2,909,377
===========
</TABLE>
- ------------
* Date of commencement of trading.
See accompanying notes
<PAGE>
DELAWARE GROUP GLOBAL & INTERNATIONAL FUNDS, INC -
GLOBAL EQUITY SERIES
Financial Highlights
Selected data for each share of the Series outstanding throughout the period
were as follows:
<TABLE>
<CAPTION>
Global Equity
Series
------------------------------------
A Class Institutional Class
7/22/1997 (1) 7/22/1997 (1)
to to
11/30/97 11/30/97
------------ -----------------
<S> <C> <C>
Net asset value, beginning of period $ 8.500 $ 8.500
Income (loss) from investment operations:
Net investment income (2) 0.056 0.056
Net realized and unrealized (loss) on investments and foreign currencies (0.326) (0.326)
------------ -----------------
Total from investment operations (0.270) (0.270)
------------ -----------------
Less dividends and distributions:
Dividends from net investment income -- --
Distributions from net realized gain on investment transactions -- --
------------ -----------------
Total dividends and distributions -- --
------------ -----------------
Net asset value, end of period $ 8.230 $ 8.230
============ =================
Total return (3) (3.18%) (3.18%)
Ratios and supplemental data:
Net assets, end of period (000 omitted) $ 6 $ 2,903
Ratio of expenses to average net assets 0.80% 0.80%
Ratio of expenses to average net assets prior to expense
limitation 1.86% 1.86%
Ratio of net investment income to average net assets 2.16% 1.86%
Ratio of net investment income to average net assets prior
to expense limitation 0.50% 0.80%
Portfolio turnover 25% 25%
Average commission rate paid (4) $ 0.0260 $ 0.0260
</TABLE>
- ----------------
(1) Date of commencement of trading; ratios have been annualized and total
returns have not been annualized.
(2) Per share information was based on the average shares outstanding method.
(3) Does not include maximum sales charge of 4.75% nor the 1% limited contingent
deferred sales charge that would apply in the event of certain redemptions
within 12 months of purchase of A Class shares.
(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.
<PAGE>
DELAWARE GROUP GLOBAL & INTERNATIONAL FUNDS, INC. -
GLOBAL EQUITY SERIES
NOTES TO FINANCIAL STATEMENTS
NOVEMBER 30, 1997
Delaware Group Global & International Funds, Inc. (the "Co.") is registered as a
Maryland corporation and offers six series, The International Equity Series, The
Global Assets Series, The Global Bond Series, The Emerging Markets Series, The
Global Equity Series and The International Small Cap Series. These financial
statements and related notes pertain to The Global Equity Series (the "Series").
The Global Equity Series is registered as a diversified open-ended investment
company. The A Class carries a front-end sales charge of 4.75%, the B Class
carries a back-end deferred sales charge, the C Class carries a level load sales
charge and the Institutional Class has no sales charge. As of November 30, 1997
only the Global Equity Series A Class and Institutional Class have commenced
operations.
The objective of the series is to achieve long-term growth without undue risk to
principal by investing in U.S. and foreign equities that provide the potential
for capital appreciation and income.
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 last
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 Series is valued. 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- The 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.
<PAGE>
Repurchase Agreements- The 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 U.S. government. The respective collateral is held by the Series'
custodian bank until the maturity of the respective repurchase agreements. Each
repurchase agreement is 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 that result from fluctuations in
foreign currency exchange rates in the statement of operations. 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 Series is aware of such dividends, net
of all non-rebatable tax withholdings. Withholding taxes on foreign dividends
have been provided for in accordance with the Series' 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 each Series' 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 Series
pays Delaware International Advisers Ltd. (DIAL), the investment manager of the
Series, an annual fee of 0.80% which is based on the daily net assets of the
Series without consideration of amounts paid to unaffiliated directors.
<PAGE>
DIAL has elected to waive that portion, if any, of the management fee and
reimburse the Series to the extent that annual operating expenses, exclusive of
taxes, interest, brokerage commission, extraordinary expenses and distribution
fees, exceed 0.80% of average daily net assets of the Series through June 30,
1998. Total expenses absorbed by DIAL for the period ended November 30, 1997
were $11,404.
The Series has engaged Delaware Service Company, Inc. (DSC) and Delaware
Investment Retirement Services, Inc. (DIRSI), affiliates of DIAL, to provide
dividend disbursing and transfer agent services for the Series. The Series has
also engaged DSC to provide accounting services. For the period ended November
30, 1997, the Series expensed $475 for dividend disbursing and transfer agent
services and $827 for accounting services.
Pursuant to the Distribution Agreement, the Series pays Delaware Distributors,
L.P. (DDLP), the Distributor and an affiliate of DIAL, 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. DDLP has elected voluntarily to
waive its rights to receive 12B-1 Plan fees (including service fees) from
commencement of operations of A class shares of the Series through June 30,
1998. At November 30, 1997 the Series had a liability to DDLP of $385.
Certain officers of Delaware Management Company (DMC), DIAL and DSC are
officers, directors and/or employees of the Series. These officers, directors
and employees are paid no compensation by the Series.
3. Investments
During the year ended November 30, 1997, the Fund made purchases of $ 3,190,992
and sales of $262,034 of investment securities other than U.S. government
securities and temporary cash investments.
At November 30, 1997, the aggregate cost of securities for federal income tax
purposes was $3,019,513.
At November 30, 1997, net unrealized depreciation for federal income tax
purposes aggregated ($120,262) of which $132,929 related to unrealized
appreciation of securities and $253,191 related to unrealized depreciation of
securities.
For federal income tax purposes the Series had accumulated capital losses at
November 30, 1997 of $8,445, which may be carried forward and applied against
future capital gains. The capital loss carryforward expires in 2005.
<PAGE>
4. Capital Stock
Transactions in capital stock were as follows:
07/22/97 *
to
11/30/97
--------
Shares sold:
Global Equity Series A Class 740
Global Equity Series Institutional Class 352,943
-------
353,683
-------
Net Increase 353,683
=======
* Date of commencement of trading.
5. Market and Credit Risks
Some countries in which the Series 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 Series
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 Series.
6. Subsequent Event
The Series declared a distribution of $0.11 per share from net investment income
for A Class and Institutional Class payable on December 30, 1997 to shareholders
of record December 19, 1997. The ex-dividend date was December 22, 1997.
<PAGE>
Report of Independent Auditors
To the Shareholders and Board of Directors
Delaware Group Global & International Funds, Inc. - Global Equity Series
We have audited the accompanying statement of net assets of Delaware Group
Global & International Funds, Inc. - Global Equity Series as of November 30,
1997, and the related statement of operations, the statement of changes in net
assets, and the financial highlights for the period July 22, 1997 (commencement
of operations) to November 30, 1997. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and financial highlights are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements and
financial highlights. Our procedures included confirmation of securities owned
as of November 30, 1997, by correspondence with the custodian and brokers. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Delaware Group Global & International Funds, Inc. - Global Equity Series at
November 30, 1997, and the results of its operations, the changes in its net
assets, and the financial highlights for the period July 22, 1997 (commencement
of operations) to November 30, 1997, in conformity with generally accepted
accounting principles.
Philadelphia, Pennsylvania
January 5, 1998
