DELAWARE GROUP GLOBAL & INTERNATIONAL FUNDS INC, N-30D, 1998-02-04

DELAWARE GROUP GLOBAL & INTERNATIONAL FUNDS INC
N-30D, 1998-02-04

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<PAGE>

DELAWARE GROUP

Global &
International Funds

(various photos demonstrating service and guidance, professional management and
goals)

service and guidance

professional management

goals

1997
Annual
Report

International Equity Fund
Global Bond Fund
Global Assets Fund
Emerging Markets Fund

<PAGE>

A TRADITION OF SOUND INVESTING

commitment

(Photo of keyboard)
(Photo of illustration from brochure)

A Commitment
To Our Investors

Delaware Group's investment tradition dates back to 1929. We have a long and
distinguished history of helping individuals and institutions - including
some of America's largest pension funds - reach their financial goals.

Headquartered in Philadelphia, a block from the nation's oldest stock
exchange, Delaware Group's first mutual fund was established in 1938.
Delaware International Advisers Ltd., our international affiliate, was
established in 1990 and is headquartered in London, a global finance center
for more than three centuries.

Today, Delaware Group offers a full range of domestic and
international investments. We also manage variable annuity investments, unit
investment trusts and closed-end funds, and offer retirement plan services for
individuals and global organizations.

Delaware manages more than $40 billion in mutual fund assets and
institutional advisory accounts, including $7 billion in international
investments. We're part of a global financial service and investment
management business owned by Lincoln National Corporation, whose subsidiaries
manage more than $120 billion in assets, with operations in Europe, Latin
America and the Far East.

Global & International
Funds' Objectives

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

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

Global Assets Fund
To seek long-term total return by investing in securities, including U.S.
stocks and bonds and foreign stocks and bonds, which, in the Manager's or
Subadviser's opinion, will provide higher current income than a portfolio
comprised solely of equity securities, along with the potential for capital
growth.

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

international
diversification

<PAGE>

December 15, 1997
for international
diversification
1

Dear Shareholder:

Fiscal 1997 was a turbulent year for international investors. In Asia, weak
fiscal policies and high levels of private sector debt precipitated financial
and currency problems with global repercussions.
Our concentration on stocks and bonds in Europe, the Americas and Pacific
Rim countries such as Australia and New Zealand reduced volatility and helped
most of Delaware Group's Global & International Funds outperform their
unmanaged benchmarks for the 12 months ended November 30, 1997.
Still, fiscal 1997 was a time of disappointment. International stocks,
particularly in emerging markets, generally offered strong returns during the
year's first half, but market weakness during the second half erased most of
the gains. Also, returns from overseas bonds were reduced by a strong U.S.
dollar. Such results illustrate the need for patience and a long-term
perspective when investing overseas.
Each of Delaware Group's four international Funds has outperformed its
peers for its respective lifetime period, as shown below. In our opinion, this
is evidence of the long-term effectiveness of Delaware's consistent, value
investment discipline.
During fiscal 1997, telecommunications, utility and credit-sensitive
stocks such as banks had the biggest impact on the returns of International
Equity Fund and Emerging Markets Fund. Results were generally positive in
established markets but mixed in emerging markets. For Global Bond Fund and
Global Assets Fund, our weighting in U.S. investment-grade and high-yield
securities, respectively, made strong contributions to total return.
<TABLE>
<CAPTION>

Average Annual Total Return
- --------------------------------------------------------------------------------------------------------------
Periods Ended November 30, 1997
12-Month Lifetime
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
International Equity Fund A Class (Est.10/31/91) +3.27% +10.12%
Lipper International Equity Fund Average +4.88% (410 funds) +9.36% (69 funds)
Morgan Stanley Europe Australia Far East (EAFE) Index -0.12% +7.18%
- --------------------------------------------------------------------------------------------------------------
Global Bond Fund A Class (Est.12/27/94) +1.24% +11.49%
Lipper Global Income Fund Average +2.26% (137 funds) +10.41% (96 funds)
Salomon Brothers World Government Bond Index -0.28% +7.66%
- --------------------------------------------------------------------------------------------------------------
Global Assets Fund A Class (Est.12/27/94) +9.91% +16.85%
Lipper Global Flexible Portfolio Average +10.19% (78 funds) +14.34% (54 funds)
Morgan Stanley World Index +12.99% +16.65%
- --------------------------------------------------------------------------------------------------------------
Emerging Markets Fund A Class (Est. 6/10/96) +3.19% +1.94%
Lipper Emerging Markets Fund Average -2.31% (128 funds) -5.27% (109 funds)
Morgan Stanley Emerging Markets Free Index -13.28% -12.53%
- --------------------------------------------------------------------------------------------------------------
</TABLE>

Results are at net asset value and assume reinvestment of dividends and
capital gains. For complete Fund performance and information about fee
waivers and expenses for all Classes, see pages 13 to 16. The unmanaged
Morgan Stanley World Index and 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.

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for international
diversification
2

Our concentration on Europe, the Americas and Pacific Rim countries such
as Australia and New Zealand reduced volatility and helped most of Delaware
Group's Global & International funds outperform their unmanaged benchmarks
in 1997.

global discipline

We believe Delaware's income-oriented and inflation-savvy method of
evaluating stocks and bonds could be especially useful in the current,
volatile global investing environment. In 1997, our value approach led us to
underweight some troubled Pacific Rim markets, such as Japan. That helped your
Funds preserve principal.
Keep in mind that international markets are diverse. One corner of
the world may be in turmoil at the same time opportunity unfolds elsewhere.
For example, while we expect Southeast Asia to remain a relatively
unattractive region for investment in 1998, our outlook for Europe and parts
of Latin America remains positive.
Delaware's 20 investment professionals in London, together with their
colleagues in Philadelphia, continuously assess the special risks of global
investing, keeping in mind the perspective of U.S. investors. Through
fundamental research of individual securities, country analysis and defensive
hedging, we strive to reduce portfolio risks.
We encourage you to review the performance discussions for your Fund
or Funds, as well as our managers' outlooks for the world's stock and bond
markets. We wish to thank you for being among the thousands of investors who
have helped make Delaware's overseas operations the fastest growing part of
our company.

Sincerely,

/s/ Wayne A. Stork
- -----------------------------------
Wayne A. Stork
Chairman

/s/ Jeffrey J. Nick
- -----------------------------------
Jeffrey J. Nick
President and Chief Executive Officer

New President and CEO
On October 13, 1997, Jeffrey J. Nick was named President and Chief Executive
Officer for the Delaware Group of Funds. Mr. Nick has been CEO of Lincoln
National Investment Companies since October 1996. He joined Lincoln National,
Delaware's indirect parent, in April 1990, and from 1992 to 1996 he managed
Lincoln's operations in the United Kingdom. Mr. Nick holds an MBA from the
University of Chicago and a bachelor of arts degree from Princeton
University.

<PAGE>

for international
diversification
3
strategy

Portfolio Managers' Reviews

International Equity Fund

Investment Strategy
Since the Fund's inception in October 1991, International Equity Fund has
invested for long-term growth using a value discipline. We focus on
dividend-paying stocks in established markets, primarily in Western Europe.
This is complemented by selected holdings in the Pacific Rim that meet our
strict value criteria. We seek stocks that appear to be selling below their
intrinsic value, and we tend to hold our selections for four to five years or
more.
Our selection process begins with an evaluation of the potential
effects of a country's currency fluctuations, inflation, local economy and
political issues. From there, we seek companies whose stocks appear to offer
superior income and capital appreciation potential. We are pleased to report
that our style, known as a dividend discount approach, has historically led
to a lower risk profile than many other international funds, as shown below.
Another way we seek to reduce risk is through defensive currency
hedging, designed strictly to protect the dollar value of our investments. As
of year's end, we held positions in the British pound and Spanish peseta. The
Fund will generally use forward currency contracts, which can limit the risk
of loss should the value of the hedged currency decline. We believe reducing
exchange risk is, at times, a more important consideration than maximizing
potential capital gains.

(Photo of family on beach)

Strategic Positioning
International Equity Fund's positive return of +3.27% (for Class A shares at
net asset value with distributions reinvested) in fiscal 1997 contrasted with
a modest decline in the value of the unmanaged Morgan Stanley EAFE Index as
shown on page 1.
We outperformed our benchmark primarily because the Fund's weighting
in Japan, one of the worst performing established markets during fiscal 1997,
was less than half that of the EAFE index. Japan's stock market, as measured
by the Nikkei Index, fell 20.2% for the 12 months ended November 30, 1997.
During calendar 1997, the Pacific Rim's emerging markets suffered
even more. As of mid-December, the Thai and South Korean

Your Fund's Attractive Risk Profile
Morningstar Risk Scores
- -------------------------------------------------------------------------------
Periods Ended September 30, 1997

International Equity Fund Foreign Stock Fund
A Class Average
- -------------------------------------------------------------------------------
Three Years (269 funds) 0.58 0.77
Five Years (114 funds) 0.67 0.78
- -------------------------------------------------------------------------------
The average Morningstar risk factor for all equity funds equals 1.00. Numbers
greater than 1.00 indicate more relative risk, less than 1.00 indicates lower
relative risk. Past performance does not guarantee future results. To
calculate risk, Morningstar concentrates on those months during which a fund
underperformed the average return of a three-month U.S. Treasury bill. It
adds up the amounts by which a fund fell short of a Treasury bill's return
and divides the result by the total number of months in the rating period.
The above information represents the latest available data.

<PAGE>

for international
diversification
4

In 1997, International Equity Fund had a strong position in stocks based in
the United Kingdom and this helped the Fund's results.

stock markets had each plunged 75% from a year earlier, as investment
professionals weighed the longer term impact of currency devaluations, bank
failures and industrial bankruptcies throughout Asia.
Your Fund didn't have any holdings in Thailand or South Korea during
the year, and only 5.9% of net assets were invested in Pacific Rim emerging
markets as of November 30, 1997. This positioning, which was lower than many
international mutual funds, helped us preserve principal during the latter
months of fiscal 1997. Nearly all of our holdings in Asian countries,
including most of our Japanese securities, were selling below our average
purchase price as of year's end.
Unrealized losses in Asia were offset by strong stock performance in
New Zealand, Australia and some countries in Europe, where governments appear
to be enacting much more prudent fiscal policies and where private sector
businesses use more conservative accounting practices, at least relative to
most Asian countries. Your Fund's largest holding as of November 30, 1997,
was Telecom Corp. of New Zealand (3.6% of net assets), a telephone company
that split its shares and raised its dividend during the year.
In 1997, your Fund had a strong position in stocks based in the
United Kingdom and this helped our results. The Fund's biggest holdings in
the UK were two retailers - Boots Company and Great Universal Stores. Each
company's sales and earnings benefited from the island nation's relatively
strong economy.
We remain optimistic about fiscal policy in the United Kingdom
because this past spring the newly elected Blair government took 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.
As the European Monetary Union draws closer to reality, the economic
environment across Continental Europe has also improved, leading to a general
investor consensus that corporate profits will improve in fiscal 1998. Many
companies continue to restructure operations or merge to become more
competitive and increase returns for shareholders.
The Fund's positions in The Netherlands, Belgium and Spain helped our
performance this past year. However, our value investment parameters did not
allow us to participate in the robust capital

Your Fund's Low Turnover Approach
- ------------------------------------------------------------
Average Annual Turnover 1993-1997

International Morningstar Foreign
Equity Fund Stock Fund Category
- ------------------------------------------------------------
1993 24% 54% (161 funds)
1994 27% 55% (269 funds)
1995 21% 62% (345 funds)
1996 9% 63% (414 funds)
1997 8% 65% (439 funds)*
- ------------------------------------------------------------
*Through September 30, 1997 for Morningstar average.
Source: Morningstar Inc.
<PAGE>

for international
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5
outlook

appreciation available in markets such as Switzerland and Sweden. We
underperformed our peers during fiscal 1997 because the Fund was
underweighted in several European stock markets where stocks rose sharply
in value.

OUTLOOK
Your Fund has benefited from being underweighted in Japan for several years,
and despite the sharp decline in Japanese stock prices in 1997, we see
nothing on the horizon that makes us want to increase our position in this
still overvalued market.
Japan's financial sector is grappling with bad loans, mismanagement
and high debt levels. Although the Tokyo government is beginning to let
market forces take hold, taxpayers may have to foot the bill to guarantee
savings at failed institutions. A November report in the Financial Times
estimated that Japan may have to spend as much as U.S. taxpayers did for the
savings & loan bailout, in an economy that's only half as large as that of
the United States.
In 1997, a few export-oriented Japanese stocks such as Canon
Electronics, the photocopier maker, contributed to your Fund's total return
and seem well-positioned for the year ahead. We expect to continue to seek
such Asian companies.
Returns from any portfolio of international stocks are generally
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.
Through fundamental analysis of individual companies'
inflation-adjusted earnings potential, we believe we can uncover superior
long-term capital appreciation potential. In our opinion, it is an approach
that may be especially useful should global markets remain volatile in 1998.

Global & Int'l chart data

International Equity Fund's Country Allocation vs.
Morgan Stanley Europe Australia Far East Index
November 30, 1997

International Equity Fund Morgan Stanley EAFE Index
------------------------- -------------------------
<S> <C> <C>
United Kingdom 29.6% 21.3%
Australia/New Zealand 14.4% 2.9%
Japan 12.0% 27.1%
Netherlands/Belgium 9.6% 6.8%
Germany 9.2% 9.6%
France 7.3% 7.9%
Asian Pacific Rim* 5.9% 4.7%
Spain 5.5% 2.6%
</TABLE>

* Hong Kong, Singapore, Malaysia, Philippines and Indonesia.
The Philippines and Indonesia are not in the Morgan Stanley EAFE Index.

<PAGE>

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strategic positioning

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 Fund's portfolio managers place great importance on quality and
select only those bonds rated "A" or better by Standard & Poor's or Moody's
Investors Services. 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.

Strategic Positioning
Generally, better bond values could be found overseas in 1997, especially in
Europe. We believe that the sale of gold reserves by Australia, Switzerland,
Argentina and other countries during the year resulted from a growing
confidence in the ability of foreign central bankers to maintain stable
monetary conditions.
Of course, most Asian countries did not enjoy stable economic
conditions or currency values. In our opinion, much of the Pacific Rim's
market volatility reflected lax, and, in some cases, irresponsible government
fiscal policies, as well as high levels of private sector debt in countries
such as Thailand, Malaysia, South Korea and Japan.
Global Bond Fund's positioning - which included a 26.8% weighting in
U.S. bonds - helped your Fund modestly outperform the unmanaged Salomon
Brothers World Government Bond Index. As of November 30, 1997, the yield on
30-year U.S. Treasury Bonds was 6.04%, a decline of 32 basis points (0.32%)
from a year earlier as bond prices rose.
During the year, we had a preference for "dollar-zone" markets, that
is non-Asian countries that denominate their currency in dollars. Your Fund's
largest weighting in dollar zone markets as of year's end were New Zealand
government securities (9.5% of net assets). In our opinion, the country was
an island of value amid a sea of Pacific Rim turmoil.
As of year's end, New Zealand bonds, on average, provided an extra
100 basis points (1%) of yield relative to U.S. Treasury securities with
comparable maturities. Unlike in most Asian countries, the Kiwi government
operates at a budget surplus and has begun paying down its overall
indebtedness.

GLOBAL BOND FUND
Portfolio Highlights
- --------------------------------------------------------------------
November 30, 1997

Current 30-Day SEC Yield 4.25%*
Highest Concentration - Western Europe 43.5% of net assets
Average Effective Duration 4.5 years
Average Effective Maturity 6.1 years
Average Quality A
- --------------------------------------------------------------------
* For Class A shares, measured according to Securities and Exchange
Commission guidelines. SEC yield was 3.76% for both Class B and Class C
shares as of November 30, 1997.

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for international
diversification
7
outlook

We Search the World
For High Income and Relative Stability
- -------------------------------------------------------------------------------
(Yields measured in U.S. dollars)

New Zealand Government Bonds Canadian Provincial Bonds (Ontario)
Italian Government Bonds U.S. Treasuries

Canadian Provincial Italian New Zealand
Bonds (Ontario) Government Bonds U.S. Treasuries Government Bonds
--------------- ---------------- --------------- ----------------
<S> <C> <C> <C> <C>
3 Month 5.91% 5.20% 7.15%
6 Month 5.69% 5.43% 7.31%
1 Year 5.43% 5.50% 7.26%
2 Year 4.37% 5.25% 5.74% 6.88%
3 Year 4.97% 5.15% 5.81% 6.87%
4 Year 5.11% 5.43% 6.86%
5 Year 5.33% 5.49% 5.84%
6 Year 5.46% 5.71% 6.81%
7 Year 5.56% 5.81%
8 Year 5.64% 5.88%
9 Year 5.77% 5.90%
10 Year 5.78% 5.95% 5.88% 6.74
15 Year 6.74
20 Year 6.09%
30 Year 6.29% 6.49% 6.06%

</TABLE>

Source: Bloomberg Business News. The above illustration is not intended to
represent the yield of Global Bond Fund. Unlike U.S. Treasuries, foreign
bonds have currency, political and economic risks and are not guaranteed by
the U.S. government. New Zealand does not offer 30-year bonds.

Selected New Zealand, Italian and Canadian bonds each provided higher yields
in U.S. dollars for U.S. investors as of November 30, 1997.

Outlook
When we invest in overseas bonds, we strive to obtain a rate of return that
is meaningfully greater than the rate of inflation in the U.S. We also seek
to preserve capital in times of weakness.
In fiscal 1997, world bond markets provided positive returns in local
currency terms. However, returns to U.S. dollar investors were eroded by an
increase in the dollar's value relative to other currencies. Among major
established countries, only the British pound matched the U.S. dollar's
currency performance during fiscal 1997.
Consequently, overseas bonds provided lower returns than domestic
U.S. debt during fiscal 1997. Our strategy of hedging our European, New
Zealand and Canadian currency exposure into the U.S. dollar during the year
helped our performance relative to the unmanaged Salomon Brothers World
Government Bond Index. However, these hedges were gradually reduced as the
U.S. dollar rose in value.
With relatively modest inflation trends in many established markets,
our outlook for overseas bonds is positive for the year ahead. However, our
optimism is tempered by the fact that the U.S. dollar may continue to be
strong, especially as Asian investors seek a safe haven from currency woes
along the Pacific Rim. Going forward, we expect to remain underweighted in
Asian Pacific Rim bonds. We anticipate maintaining a strong weighting in
Canadian and New Zealand bonds, where real yields remain attractive.

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for international
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8

Global Assets Fund

Investment Strategy
Global Assets Fund has provided a competitive total return during fiscal 1997
that reflected the Fund's ability to diversify among four asset classes in
both the U.S. and foreign markets. We believe our allocation to stocks and
bonds gave the Fund the performance characteristics of a global balanced
fund.
Slightly more than half of the Fund's net assets were invested in the
U.S. as of November 30, 1997. Overall, we had a 55.7% stock, 31.3% bond, 13%
cash mix. This reflected a modest one percentage point shift from stocks into
bonds compared to a year earlier.
Using the same income-oriented approach as International Equity Fund
and Global Bond Fund, we compare stocks and bonds within a country as well as
across countries, all using a consistent yardstick. And, of course, we take
inflation into account when evaluating both U.S. 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 3),
Global Assets had a high concentration of stocks in Europe, particularly in
the United Kingdom. Stock selections there performed well amid a change in
government leadership. As of November 30, the single largest foreign stock
holding in the Fund's portfolio was GKN, a British engineering company,
amounting to 1.1% of the Fund's net assets.
Only 1.6% of net assets were invested in Pacific Rim emerging markets
as of year's end. This positioning, which was lower than many global-oriented
mutual funds, helped us preserve principal during the latter months of fiscal
1997.
In our opinion, the Japanese investors are expecting future levels of
profitability that are much higher than can be reasonably anticipated, and we
plan to significantly underweight this market and either avoid or minimize
our exposure to emerging Asian markets.
For 1998, 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
Despite volatile market conditions, fiscal 1997 was a rewarding period for
investors who could uncover undervalued U.S. stocks and make them the
cornerstones of a diversified portfolio.

Global Assets Fund Asset Mix
- --------------------------------------------------------------------------
November 30, 1997

High-Yield U.S. Bonds 11.8%
Foreign Bonds 19.5%
U.S. Stocks 30.5%
Foreign Stocks 25.3%
Cash Equivalents 12.9%

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for international
diversification
9
value

For much of the period, stocks of large, high profile companies
tended to outperform the rest of the equity market, as investors focused on
businesses with consistent earnings and stocks offering dividend growth
potential. We successfully rode a wave of investor enthusiasm that lifted the
prices of many pharmaceutical, banking, insurance and capital goods
companies.
But we also applied a strict value discipline that forced us to sell
or reduce some of our positions in large multinational consumer companies
well before the wave broke in late October. This enabled us to preserve
capital to a greater degree than our peers between August, when the stock
market peaked, and the fiscal year's end.
Over time, investors tend to pay more for companies whose earnings
and dividends are likely to grow at a steady rate, in our opinion. When we
select stocks, we look for:

* Value - attractive 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 through acquisition; and,
* Undiscovered Potential - the company's potential hasn't been recognized
by the market.

Compared to a year ago, we've slightly increased our weighting in
mid-cap companies, adding niche service companies such as Ecolab Inc., which
provides sanitary services to the hospitality industry, and Masco Corp., a
building supplies and faucet maker. During fiscal 1997, we also reduced our
weighting in health care stocks. Most of these performed well, with one
important exception Columbia/HCA Healthcare, the nation's largest hospital
chain.

(Photo of Keyboard)

* Global Bonds
During fiscal 1997, we substantially reduced the portion of your Fund's net
assets allocated to foreign bonds from 22.7% to 19.5%. We were concerned
about the impact of a rising U.S. dollar on returns from overseas bonds.
The Fund's holdings include high-quality foreign government and
corporate bonds managed in the same style as Global Bond Fund. Our largest
position as of year end was in Germany (4.6% of net assets), where we have
confidence that the Kohl government can act with fiscal discipline as the
country prepares to enter the European Monetary Union. As in Global Bond
Fund, we also had substantial positions in New Zealand and Canada and had
minimal exposure to Asian Pacific Rim securities.
Within selected established markets, we are generally optimistic
about the long-term prospects for bonds. We believe the sale of gold reserves
by Australia, Switzerland and other countries during 1997 showed a growing
confidence in the ability of some foreign central bankers to maintain stable
monetary conditions and fight inflation. Some European countries' bonds could
look increasingly attractive as gold loses credibility as a store of value
and hedge against inflation.

* High-Yield U.S. Bonds
High-yield bonds provided a higher total return than other segments of the
U.S. bond market during fiscal 1997, and 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 11.8% as of November 30.

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outlook

THE HIGH-YIELD U.S. 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 GLOBAL VOLATILITY AS WELL AS THE LARGEST SHORT-TERM U.S.
STOCK MARKET CORRECTION IN SEVEN YEARS.

For three years, high-yield bonds have 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 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 November 30, your Fund's high-yield
component had an average effective maturity of 6.3 years and an effective
duration of 4.4 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. We expect this pattern to
continue in 1998.

Outlook
Although volatility increased on a global basis during 1997, we firmly
believe that our disciplined, diversified approach to both stocks and bonds
can be an effective tool for securities selection and portfolio management.
In our opinion, the short-term growth and income potential of U.S.
stocks and bonds is not nearly as robust as it was three years ago when
Global Assets Fund began operations. Nevertheless, our analysis suggests
economic conditions are likely to remain considerably more stable in the U.S.
than in other regions, particularly the Pacific Rim. Thus, we plan to invest
a substantial portion, if not a majority, of your Fund's assets in U.S.
securities in 1998.
One bright spot overseas is western Europe. After several years of
stagnation, economic growth is picking up. In many countries, both the
private and public sectors are implementing prudent fiscal policies likely to
benefit long-term investors, and generally avoid the painful challenges now
facing the Pacific Rim.

Emerging Markets Fund

Investment Strategy
We are pleased to report that during fiscal 1997 Emerging Markets Fund was
able to preserve capital to a greater extent than its peers during an
exceptionally difficult period for developing countries along the Pacific
Rim.
Consistent with International Equity Fund's style, 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 a measure of value.
Overall, we invested in 73 stocks in 23 countries, with Brazil being
our largest single country position (12.7% 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.

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investment strategy

Strategic Positioning
and Outlook
As a currency crisis that began in Thailand spread to other countries during
the second and third calendar quarters of 1997, our substantial
underweighting of Pacific Rim markets benefited overall performance.
As you can see in the chart below, more than two-thirds of your
Fund's assets were invested outside of Asia as of November 30. Another 15% of
assets were invested in India and domestic-oriented Chinese companies, two
market segments where stocks held up much better than in Thailand, South
Korea or Malaysia.
We believe our value-oriented stock selection process made a positive
difference because Pacific Rim investors tended to gravitate toward companies
whose operations are characterized by strong positive cash flows that are
unlikely to be seriously affected by a local recession.
In Malaysia, ROTHMANS, a tobacco company whose shares we owned (3.1%
of the Fund's net assets as of Nov. 30), enjoyed more than 15% capital
appreciation during November, a time when the stock market in Kuala Lumpur
slumped amid concerns about a declining currency, government spending and
fiscal policies.
Likewise, our Chinese stocks suffered less than the overall stock
market in Hong Kong this past fall. Emerging Markets Fund has been focusing
on so-called "Red Chip" companies - mainland Chinese businesses whose shares
are traded on Hong Kong's Hang Seng Exchange.
We are generally optimistic about mainland China for the long term
because internal rather than export-dependent growth is driving the nation's
economy. Our stock selections have virtually no exposure to Hong Kong's
overvalued property market. Even with an economic slowdown in other parts of
Asia, we estimate that China's gross domestic product can still grow at an
attractive 6% annual rate for the next several years. That's about twice the
long-term growth rate of the U.S. economy.
Several months ago, China's central bank cut interest rates. In our
view, that should help companies such as GUANGDONG KELON ELECTRIC, which
makes

Emerging Markets Fund: Focusing on Latin America and Europe
- ----------------------------------------------------------------
Country/Region Allocation (November 30, 1997)

Other Pacific Rim* 5.1%
Middle East*** 8.1%
Eastern Europe & Russia 11.8%
China (Hong Kong) 6.4%
South Africa 6.0%
Malaysia 8.4%
U.S. Cash Equivalents 8.3%
Thailand 3.9%
Latin America** 32.2%
India 8.8%

*Indonesia, Taiwan, South Korea.
**Brazil, Mexico, Argentina, Chile and Peru.
***Israel, Turkey, Egypt.

<PAGE>

for international
diversification
12

EMERGING MARKETS FUND WAS ABLE TO PRESERVE CAPITAL TO A GREATER EXTENT THAN
ITS PEERS BY MAINTAINING A DIVERSE PORTFOLIO THAT INCLUDED STOCKS IN LATIN
AMERICA, EUROPE AND THE MIDDLE EAST.

refrigerators for local consumers (1.5% of the Fund's net assets as of
Nov. 30). Its shares have more than doubled in price since we took a
position.
Hong Kong's sharp stock market decline in October 1997 was due in
part to its increasingly uncompetitive economic position relative to its
neighbors. Labor costs are high while property prices are the world's
highest. These problems have been compounded by the strength of the U.S.
dollar.
Elsewhere in the world in fiscal 1997, your Fund benefited from
holdings in energy stocks in Russia such as Lukoil Oil Co., Mexican stocks,
as well as holdings in Turkey and Greece. Capital appreciation from telephone
and economically sensitive stocks such as construction companies and banks
contributed to our returns, offsetting losses elsewhere.
Overall, however, we have to say that 1997's +3.19% return (for Class
A shares at net asset value with dividends reinvested) was disappointing,
especially considering that the Fund posted double digit positive returns
during the first half. In our opinion, the Pacific Rim's problems unfairly
dragged down emerging markets across the globe.
As of year's end, stocks in the Fund's portfolio were priced at an
average of 86% of what the Fund paid for them, indicating a substantial
amount of unrealized losses, which, if realized, we can use to offset any
future realized gains. We believe pockets of value have emerged in Asia as a
result of this past autumn's declines, and we hope to exploit them in the
coming months.
In 1998, we expect to continue to focus on Eastern and Mediterranean
Europe, particularly Russia, Greece and Hungary, as a source of investment
opportunities. At the same time, we anticipate having a strong presence in
Latin America.
Your Fund tends to emphasize stocks with low price-to-earnings ratios
relative to stocks in our benchmark, the Morgan Stanley Emerging Markets Free
Index. We believe this strategy has particular advantages during periods of
market volatility, and believe it will serve shareholders well over the next
several years.

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
Global Assets Fund, International Bonds

George H. Burwell
Delaware Management Company
Global Assets Fund, U.S. Stocks

Robert Akester
Delaware International Advisers Ltd.
Emerging Markets Fund

Paul A. Matlack
Delaware Management Company
Global Assets Fund, U.S. High Yield Bonds

December 15, 1997

<PAGE>

for international
diversification
13

On the following four pages, you'll see that each of Delaware Group's
international funds has provided a competitive return relative to its peers
for each Fund's respective lifetime period. In addition, International Equity
Fund has outdistanced its unmanaged benchmark, even after taking sales
charges into account.

International Equity Fund's Performance
- -------------------------------------------------------------------------------
Growth of a $10,000 Investment, Distributions Reinvested
October 31, 1991, to November 30, 1997

Morgan Stanley Lipper International
International Equity Europe Australia Fund Average
Fund A Class and Far East Index (69 funds)
-------------------- ------------------ --------------------
<S> <C> <C> <C>
Oct. 31 '91 $ 9,524 $10,000 $10,000
Nov. 30 '91 $ 9,190 $ 9,533 $ 9,659
Nov. 30 '92 $ 9,177 $ 8,760 $ 9,572
Nov. 30 '93 $11,295 $10,886 $12,028
Nov. 30 '94 $12,337 $12,502 $13,170
Nov. 30 '95 $13,345 $13,448 $13,873
Nov. 30 '96 $16,577 $15,029 $15,947
Nov. 30 '97 $17,118 $14,996 $16,679
</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 November 30, 1997
Lifetime Five Years One Year
- -----------------------------------------------------------------------
Class A (Est. 10/31/91)
Excluding Sales Charge +10.12% +13.28% +3.27%
Including Sales Charge +9.24% +12.18% -1.64%
- -----------------------------------------------------------------------
Class B (Est. 9/6/94)
Excluding Sales Charge +7.43% +2.54%
Including Sales Charge +6.64% -1.46%
- -----------------------------------------------------------------------
Class C (Est. 11/29/95)
Excluding Sales Charge +12.22% +2.54%
Including Sales Charge +12.22% +1.54%

See page 14 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.

<PAGE>

for international
diversification
14

Global Bond Fund's Performance
- ---------------------------------------------------------------------------
Growth of a $10,000 Investment, Distributions Reinvested
December 27, 1994, to November 30, 1997

Lipper Global Income Fund Average (96 funds)
Global Bond Fund A
Salomon Brothers World Government Bond Index
<TABLE>
<CAPTION>

Salomon Brothers Lipper Global
Global Bond World Government Income Fund
Fund A Class Bond Index Average (96 funds)
------------ ---------------- ------------------
<S> <C> <C> <C>
Dec. 27, '94 $ 9,524 $10,000 $10,000
Jan. 31, '95 $ 9,571 $10,223 $ 9,999
Feb. 28, '95 $ 9,743 $10,512 $10,111
Mar. 31, '95 $ 9,772 $11,449 $10,334
Apr. 28, '95 $10,003 $11,694 $10,617
May 31, '95 $10,332 $11,949 $10,974
June 30, '95 $10,332 $12,009 $10,968
July 31, '95 $10,538 $12,072 $11,059
Aug. 31, '95 $10,676 $11,382 $11,036
Sept. 30, '95 $10,934 $11,718 $11,230
Oct. 31, '95 $11,153 $11,755 $11,336
Nov. 30, '95 $11,314 $11,857 $11,528
Dec. 31, '95 $11,512 $11,961 $11,775
Jan. 31, '96 $11,544 $11,696 $11,935
Feb. 29, '96 $11,544 $11,730 $11,728
Mar. 31, '96 $11,544 $11,759 $11,741
Apr. 30, '96 $11,587 $11,736 $11,845
May 31, '96 $11,619 $11,742 $11,886
June 30, '96 $11,794 $11,808 $11,993
July 31, '96 $12,002 $12,133 $12,130
Aug. 31, '96 $12,168 $12,215 $12,247
Sept. 30, '96 $12,356 $12,192 $12,464
Oct. 31, '96 $12,680 $12,398 $12,702
Nov. 30, '96 $12,938 $12,540 $13,001
Dec. 31, '96 $12,878 $12,451 $12,957
Jan. 31, '97 $12,579 $11,946 $12,830
Feb. 28, '97 $12,637 $11,807 $12,839
Mar. 31, '97 $12,498 $11,731 $12,661
Apr. 30, '97 $12,428 $11,493 $12,684
May 31,'97 $12,674 $11,916 $12,886
June 30, '97 $12,827 $12,063 $13,037
July 31, '97 $12,768 $11,748 $13,127
Aug. 31, '97 $12,732 $11,801 $13,056
Sept. 30, '97 $13,074 $12,088 $13,347
Oct. 31, '97 $13,201 $12,358 $13,300
Nov. 30, '97 $13,097 $12,042 $13,296

</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.

<PAGE>

Global Bond Fund
- --------------------------------------------------------------------
Average Annual Total Return Through November 30, 1997
Lifetime One Year
- --------------------------------------------------------------------
Class A (Est.12/27/94)
Excluding Sales Charge +11.49% +1.24%
Including Sales Charge +9.65% -3.55%
- --------------------------------------------------------------------
Class B (Est.12/27/94)
Excluding Sales Charge +10.75% +0.48%
Including Sales Charge +9.90% -3.27%
- --------------------------------------------------------------------
Class C (Est.11/29/95)
Excluding Sales Charge +6.61% +0.49%
Including Sales Charge +6.61% -0.45%

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. Performance excluding sales
charges for B and C Classes assumes contingent sales charges did not apply or
the investment was not redeemed.

Voluntary expense limitations of 0.95% are in effect for Global Bond Fund and
Global Assets Fund. There is a 1.55% expense limitation for International
Equity Fund and 1.70% for Emerging Markets Fund.

Class A shares have a maximum 4.75% front-end sales charge and a 12b-1 fee of
0.30%.
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 of up to 4% 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 Nov.
30, 1997.

Lifetime Five Years One Year
International Equity Fund* +10.38% +13.62% +3.55%
Global Bond Fund** +11.81% +1.45%
Global Assets Fund** +17.20% +10.34%
Emerging Markets Fund *** +2.38% +3.64%

* Initially offered on 11/9/92. Lifetime performance commenced 10/31/91. For
periods prior to 11/9/92, performance is based on Class A performance,
adjusted to eliminate the sales charges, but not the asset-based distribution
charge. ** Initially offered on 12/27/94. *** Initially offered 6/10/96.

<PAGE>

for international
diversification
15

Global Assets Fund's Performance
- ------------------------------------------------------------------------
Growth of a $10,000 Investment, Distributions Reinvested
December 27, 1994, to November 30, 1997
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>

Salomon Brothers Lipper Global
Global Assets Morgan Stanley World Government Flexible Portfolio
Fund A Class World Index Bond Index (54 funds)
------------ ----------- ---------- ----------

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.

Global Assets Fund
- ---------------------------------------------------------------------------
Average Annual Total Return Through November 30, 1997
Lifetime One Year
- ---------------------------------------------------------------------------
Class A (Est.12/27/94)
Excluding Sales Charge +16.85% +9.91%
Including Sales Charge +14.92% +4.71%
- ---------------------------------------------------------------------------
Class B (Est.12/27/94)
Excluding Sales Charge +16.05% +9.18%
Including Sales Charge +15.28% +5.18%
- ---------------------------------------------------------------------------
Class C (Est.11/29/95)
Excluding Sales Charge +12.92% +9.21%
Including Sales Charge +12.92% +8.21%
- ---------------------------------------------------------------------------

<PAGE>

for international
diversification
16

Emerging Markets Fund's Performance
- ---------------------------------------------------------------------------
Production: Monthly Plot Points on this chart only
Growth of a $10,000 Investment, Distributions Reinvested
June 10, 1996, to November 30, 1997

Lipper
Emerging Markets Morgan Stanley Emerging Markets Fund
Fund A Class Emerging Markets Free Index Average (109 Funds)
---------------- --------------------------- ---------------------

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.

Emerging Markets Fund
- --------------------------------------------------------------------------
Average Annual Total Return Through November 30, 1997
Lifetime One Year
- --------------------------------------------------------------------------
Class A (Est. 6/10/96)
Excluding Sales Charge +1.94% +3.19%
Including Sales Charge -1.37% -1.74%
- --------------------------------------------------------------------------
Class B (Est. 6/10/96)
Excluding Sales Charge +1.26% +2.48%
Including Sales Charge -1.45% -1.52%
- --------------------------------------------------------------------------
Class C (Est. 6/10/96)
Excluding Sales Charge +1.26% +2.48%
Including Sales Charge +1.26% +1.48%
- --------------------------------------------------------------------------
See page 14 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.

<PAGE>

for international diversification 17

Financial Statements
Delaware Group Global & International Funds, Inc. -
International Equity Series
Statement of Net Assets
November 30, 1997 Number Market Value
of Shares (U.S. $)
---------- -----------
COMMON STOCK - 93.62%
Australia - 10.14%
+Amcor ................................... 980,000 $ 4,371,339
CSR ..................................... 1,862,874 6,089,362
Foster's Brewing Group .................. 2,561,165 4,726,656
+NATIONAL AUSTRALIA BANK ................. 542,238 7,152,645
*Telstra ................................. 395,840 708,961
-----------
23,048,963
-----------
Belgium - 3.24%
+ELECTRABEL .............................. 32,890 7,354,668
-----------
7,354,668
-----------
France - 7.33%
Alcatel Alsthom ......................... 35,531 4,451,790
Compagnie de Saint Gobain ............... 29,975 4,070,325
Elf Aquitaine ........................... 33,865 3,927,690
Societe Television Francaise ............ 32,118 4,219,935
-----------
16,669,740
-----------
Germany - 9.18%
Bayer ................................... 142,090 5,238,605
Continental ............................. 119,500 2,980,979
+RHEINISCH WESTFAELISCHES ELEK ........... 137,000 6,726,309
Siemens ................................. 99,900 5,918,615
-----------
20,864,508
-----------
Hong Kong - 2.89%
Hong Kong Electric ...................... 932,000 3,152,763
Wharf Holdings .......................... 1,680,000 3,422,894
-----------
6,575,657
-----------
Indonesia - 0.42%
PT Bank Dagang Nasional ................. 6,385,250 697,831
PT Semen Gresik ......................... 360,000 253,275
-----------
951,106
-----------
Japan - 11.96%
Amano ................................... 194,000 1,654,294
Canon Electronics ....................... 233,000 5,614,241
+Eisai ................................... 314,000 4,569,062
+Kinki Coca-Cola Bottling ................ 183,000 1,961,354
Koito Manufacturing ..................... 679,000 3,415,585
Matsushita Electric ..................... 334,000 5,199,768
Senko ................................... 452,000 961,815
West Japan Railway ...................... 1,160 3,811,463
-----------
27,187,582
-----------
Malaysia - 0.64%
Oriental Holdings Berhad ................ 320,000 483,191
Sime Darby Berhad ....................... 966,000 963,248
-----------
1,446,439
-----------
- --------
Top 10 stock holdings, representing 30.8% of net assets, are in boldface.

<PAGE>
Common Stock (Continued)

Number Market Value
of Shares (U.S. $)
---------- ------------
Netherlands - 6.39%
Elsevier ........................................ 238,000 $ 4,021,524
Koninklijke Van Ommeren ......................... 66,000 2,290,168
Royal Dutch Petroleum ........................... 75,280 3,918,270
+Unilever NV-CVA ................................. 74,120 4,308,912
-----------
14,538,874
-----------
New Zealand - 4.27%
Carter Holt Harvey .............................. 1,117,300 1,617,666
+TELECOM CORPORATION OF NEW ZEALAND .............. 1,579,920 8,098,594
-----------
9,716,260
-----------
Philippines - 0.94%
Philippine Long Distance Telephone Company
ADR ............................................ 85,800 2,128,912
-----------
2,128,912
-----------
Singapore - 1.05%
Jardine Matheson Holdings Limited ............... 452,287 2,397,121
-----------
2,397,121
-----------
Spain - 5.53%
Banco Central Hispanoamericano SA ............... 226,904 4,353,879
+Iberdrola SA .................................... 215,000 2,747,904
Telefonica de Espana ............................ 189,500 5,466,959
-----------
12,568,742
-----------
United Kingdom - 29.64%
BG .............................................. 825,000 3,915,524
BASS ............................................ 461,000 6,602,774
Blue Circle Industries .......................... 953,254 5,514,408
BOOTS ........................................... 507,500 7,465,929
British Airways ................................. 654,000 6,014,580
Cable & Wireless ................................ 670,000 5,901,450
*Centrica ........................................ 935,000 1,366,021
GKN ............................................. 282,900 6,178,188
GREAT UNIVERSAL STORES .......................... 620,200 7,322,149
Rio Tinto ....................................... 439,700 5,361,957
Taylor Woodrow .................................. 1,580,825 4,645,823
UNIGATE ......................................... 726,000 7,093,648
-----------
67,382,451
-----------
Total Common Stock (cost $198,035,390) .......... 212,831,023
-----------

WARRANTS - 0.01%
Indonesia - 0.01%
*PT Bank Dagang Nasional 2/14/00 ................. 568,750 7,459
-----------
Total Warrants (cost $0) ........................ 7,459
-----------
<PAGE>

18 for international diversification

International Equity Series
Statement of Net Assets (Continued)

Statement of Net Assets
November 30, 1997 Principal Market Value
Amount (U.S. $)
---------- -----------

REPURCHASE AGREEMENTS - 4.98%
With Chase Manhattan 5.68% 12/01/97
(dated 11/28/97, collateralized by
$3,766,000 U.S. Treasury Notes 8.25% due
07/15/98 market value $3,939,282) ............. $3,858,000 $3,858,000
With JP Morgan Securities 5.70%
12/01/97 (dated 11/28/97, collateralized
by $2,365,000 U.S. Treasury Notes 5.125% due
02/28/98 market value $2,392,852 and
$1,418,000 U.S. Treasury Notes 5.125% due
04/30/98 market value $1,421,226) ............. 3,737,000 3,737,000
With PaineWebber 5.68% 12/01/97 (dated
11/28/97, collateralized by $3,707,000
U.S. Treasury Notes 6.25% due 06/30/98
market value $3,815,951 ) ..................... 3,736,000 3,736,000
------------
Total Repurchase Agreements
(cost $11,331,000) ............................ 11,331,000
------------

TOTAL MARKET VALUE OF SECURITIES - 98.61%
(cost $209,366,390) .......................................... $224,169,482
RECEIVABLES AND OTHER ASSETS NET OF LIABILITIES - 1.39% ....... 3,157,237
------------
NET ASSETS APPLICABLE TO 15,514,830 SHARES ($.01 PAR
VALUE) OUTSTANDING - 100.00% ................................. $227,326,719
============

NET ASSET VALUE - INTERNATIONAL EQUITY SERIES A CLASS
($112,424,901 / 7,675,281 shares) ............................ $14.65
============
NET ASSET VALUE - INTERNATIONAL EQUITY SERIES B CLASS
($31,914,063 / 2,192,139 shares) ............................. $14.56
============
NET ASSET VALUE - INTERNATIONAL EQUITY SERIES C CLASS
($11,810,719 / 812,230 shares) ............................... $14.54
============
NET ASSET VALUE - INTERNATIONAL EQUITY SERIES INSTITUTIONAL
CLASS ($71,177,036 / 4,835,180 shares) ....................... $14.72
============

COMPONENTS OF NET ASSETS AT NOVEMBER 30, 1997:
Common stock, $.01 par value, 500,000,000 shares authorized
to the Series 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 ......................................... $205,086,677
Undistributed net investment income** ........................ 5,057,793
Accumulated net realized gain on investments ................. 2,394,928
Net unrealized appreciation of investments and foreign currencies 14,787,321
------------
Total net assets ............................................. $227,326,719
============
------------------
* Non-income producing securities.
**Undistributed net investment income includes net realized gains
(losses) on foreign currencies. Net realized gains on foreign currencies
are distributed as net investment income in accordance with provisions of
the Internal Revenue Code.
+ Security is partially or fully on loan.
ADR - American Depository Receipt

NET ASSET VALUE AND OFFERING PRICE PER SHARE -
INTERNATIONAL EQUITY SERIES
Net asset value A Class (A) ........................................... $14.65
Sales charge (4.75% of offering price or 4.98% of the amount invested
per share)(B) 0.73
--------
Offering price ........................................................ $15.38
========
------------------
(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>

for international diversification 19
Global Assets Series
Statement of Net Assets
November 30, 1997

Number Market Value
of Shares (U.S. $)
--------- --------
COMMON STOCK - 55.74%
Australia - 3.01%
Amcor ............................................. 13,900 $ 62,002
CSR ............................................... 28,650 93,651
Foster's Brewing Group ............................ 52,239 96,408
National Australia Bank ........................... 10,588 139,666
Southcorp Holdings ................................ 32,000 98,282
*Telstra ........................................... 9,018 16,152
--------
506,161
--------
Belgium - 0.76%
Electrabel ........................................ 570 127,460
--------
127,460
--------
France - 2.37%
Compagnie de Saint Gobain ......................... 1,120 152,086
Elf Aquitaine ..................................... 1,232 142,888
Societe Generale .................................. 779 102,352
--------
397,326
--------
Germany - 2.04%
Bayer ............................................. 2,100 77,423
Continental ....................................... 3,800 94,793
Rheinisch Westfaelisches Elektric ................. 1,850 90,830
Siemens ........................................... 1,350 79,981
--------
343,027
--------
Hong Kong - 0.65%
Hong Kong Electric ................................ 11,000 37,211
Wharf Holdings .................................... 35,000 71,310
--------
108,521
--------
Indonesia - 0.28%
PT Bank Dagang Nasional ........................... 427,448 46,715
--------
46,715
--------
Japan - 3.37%
Canon Electronics ................................. 5,000 120,477
Chiyoda Fire and Marine ........................... 12,000 35,768
Eisai ............................................. 5,000 72,756
Hitachi ........................................... 10,000 70,800
Koito Manufacturing ............................... 10,000 50,303
Matsushita Electric ............................... 7,000 108,977
West Japan Railway ................................ 20 65,715
Yokohama Reito .................................... 5,000 40,289
--------
565,085
--------
Malaysia - 0.05%
Sime Darby Berhad ................................. 8,300 8,276
--------
8,276
--------
Netherlands - 1.79%
Elsevier .......................................... 5,150 87,020
Koninklijke Van Ommeren ........................... 2,515 87,269
Royal Dutch Petroleum ............................. 2,440 127,000
--------
301,289
--------
- --------
Top 10 stock holdings, representing 12.2% of net assets, are in boldface.

<PAGE>
Common Stock (Continued)

Number Market Value
of Shares (U.S. $)
---------- ------------
New Zealand - 0.94%
Carter Holt Harvey ................................ 32,800 $ 47,489
Telecom Corporation of New Zealand ................ 21,600 110,721
----------
158,210
----------
Philippines - 0.21%
Philippine Long Distance Telephone Company ADR .... 1,400 34,738
----------
34,738
----------
Singapore - 0.41%
Jardine Matheson Holdings Limited ................. 13,027 69,043
----------
69,043
----------
South Korea - 0.07%
Cho Hung Bank - GDR ............................... 4,580 10,992
----------
10,992
----------
Spain - 1.31%
Banco Central Hispanoamericano SA ................. 3,270 62,745
Iberdrola SA ...................................... 6,000 76,686
Telefonica de Espana .............................. 2,775 80,057
----------
219,488
----------
United Kingdom - 7.99%
BG ................................................ 7,059 33,502
BASS .............................................. 6,600 94,530
Blue Circle Industries ............................ 13,256 76,684
Boots ............................................. 11,200 164,765
British Airways ................................... 6,200 57,019
Cable & Wireless .................................. 16,400 144,453
*Centrica .......................................... 8,000 11,688
GKN ............................................... 8,800 192,181
GLAXO WELLCOME .................................... 7,320 169,998
POWERGEN .......................................... 13,700 177,710
Rio Tinto ......................................... 8,650 105,483
Taylor Woodrow .................................... 38,600 113,440
----------
1,341,453
----------
United States - 30.49%
Alltel ............................................ 2,200 87,450
AMERICAN HOME PRODUCTS ............................ 2,900 202,638
American International Group ...................... 950 95,772
BB&T .............................................. 1,300 70,850
Chubb ............................................. 1,100 78,031
CMS Energy ........................................ 1,800 70,875
CONAGRA ........................................... 5,400 194,063
Danaher ........................................... 2,200 129,250
Developers Diversified Realty ..................... 700 27,256
Ecolab ............................................ 3,000 153,000
Equifax ........................................... 4,500 153,563
Exxon ............................................. 1,200 73,200
Federal Home Loan ................................. 1,600 66,000
Federal National Mortgage ......................... 1,200 63,375
Foster Wheeler .................................... 1,900 58,544
<PAGE>
20 for international diversification

Global Assets Series
Statement of Net Assets (Continued)

Common Stock (Continued)
United States (Continued)

Number Market Value
of Shares (U.S. $)
---------- ------------

Freeport-McMoRan Copper & Gold .................. 3,000 $ 68,438
Fuller (HB) .................................... 1,300 64,025
GenCorp ......................................... 1,700 42,606
General Electric ................................ 500 36,875
Hershey Foods ................................... 1,000 61,375
Hewlett-Packard ................................. 1,200 73,275
Hillenbrand Industries .......................... 2,600 115,863
HON Industries .................................. 1,600 85,700
Intel ........................................... 1,600 124,250
Johnson & Johnson ............................... 2,400 151,050
Kerr-McGee ...................................... 900 59,681
MASCO ........................................... 4,900 230,913
May Department Stores ........................... 1,300 69,875
Miller .......................................... 1,100 55,688
Nationwide Financial Services - A ............... 2,800 95,725
Nationwide Health Properties .................... 1,500 35,438
Pentair ......................................... 2,300 86,825
PHILIP MORRIS ................................... 5,000 217,500
PMI Group ....................................... 1,800 117,000
Provident ....................................... 3,400 111,563
Ralston-Purina Group ............................ 1,500 139,500
Reynolds & Reynolds Class A ..................... 3,000 57,375
RITE AID ........................................ 4,300 282,725
Rockwell International .......................... 1,000 48,750
SAFECO .......................................... 1,500 73,594
Service International ........................... 2,800 102,375
Sherwin-Williams ................................ 4,600 131,388
Sun Communities ................................. 1,500 54,656
Teleflex ........................................ 1,800 68,850
TYCO INTERNATIONAL .............................. 5,600 219,800
Universal Foods ................................. 1,400 58,100
Unum ............................................ 1,800 85,388
Valspar ......................................... 1,800 54,675
W.R. Grace & Company ............................ 1,400 101,850
Wallace Computer Services ....................... 3,900 135,769
Zeneca Group plc ADR ............................ 800 76,950
----------
5,119,277
----------
Total Common Stock (cost $8,101,721) ............ 9,357,061
----------

WARRANTS - 0.01%
Indonesia - 0.01%
*PT Bank Dagang Nasional Warrants 02/14/00 ....... 75,000 984
----------
Total Warrants (cost $0) ........................ 984
----------

Principal
Amount**
BONDS - 31.29%
Canada - 2.11%
Export-Import Bank of Japan 7.75%
10/08/02 ....................................... C$ 50,000 38,225
GMAC Canada 6.75% 12/14/01 ....................... 100,000 72,719
Government of Canada 9.00% 12/01/04 .............. 150,000 127,063

<PAGE>

BONDS (Continued)
Canada (Continued)

Principal Market Value
Amount (U.S. $)
---------- -----------
KFW International Finance 6.50% 12/28/01 ............ C$ 50,000 $ 36,403
Kingdom of Norway 8.38% 01/27/03 .................... 50,000 39,409
Ontario Hydro 10.00% 03/19/01 ....................... 50,000 40,199
-----------
354,018
-----------
Germany - 4.61%
Baden Wurt L-Finance NV 6.63% 08/20/03 .............. Dem 150,000 90,356
Bayerische Vereinsbank 6.50% 06/06/05 ............... 200,000 120,248
Bundesrepblik Deutscheland 5.75% 08/22/00 ........... 350,000 204,381
Bundesrepblik Deutscheland 6.50% 07/15/03 ........... 150,000 90,501
Bundesrepblik Deutscheland 8.38% 05/21/01 ........... 240,000 151,386
DSL Finance NV 6.00% 02/21/06 ....................... 200,000 116,222
-----------
773,094
-----------
Italy - 1.76%
Italian Government 12.00% 01/01/03 .................. Itl 400,000,00 295,750
-----------
295,750
-----------
Japan - 2.94%
Federal National Mortgage Association 2.00%
12/20/99. . . . . . . . . . . . . . . Jpy 40,000,000 322,114
International Bank of Reconstruction & Development
4.50% 06/20/00 .................................... 10,000,000 85,957
Republic of Italy 3.50% 06/20/01 .................... 10,000,000 85,028
-----------
493,099
-----------
Netherlands - 2.39%
Netherlands Government 7.50% 01/15/23 ............... Nlg 300,000 180,587
Netherlands Government 9.00% 05/15/00 ............... 400,000 221,372
-----------
401,959
-----------
New Zealand - 1.92%
Government of New Zealand 6.50% 02/15/00............. NZ$ 100,000 61,136
Government of New Zealand 8.00% 04/15/04 ............ 190,000 124,340
Government of New Zealand 10.00% 03/15/02 ........... 200,000 137,525
-----------
323,001
-----------
Sweden - 2.19%
Sweden (Kingdom of) 5.50% 04/12/02 .................. Sk 1,000,000 127,440
Swedish Government 8.00% 08/15/07 ................... 1,000,000 145,773
Swedish Government 9.00% 04/20/09 ................... 200,000 31,428
Swedish Government 13.00% 06/15/01 .................. 400,000 63,314
-----------
367,955
-----------
United Kingdom - 1.57%
Abbey National Treasury 8.00% 04/02/03 .............. Gbp 40,000 69,502
Depfa Finance 7.13% 11/11/03 ........................ 60,000 100,960
Glaxo Wellcome 8.75% 12/01/05 ....................... 50,000 92,156
-----------
262,618
-----------
United States - 11.80%
Adelphia Communications 11.88% 09/15/04 ............. $ 25,000 27,250
AFC Enterprises 10.25% 05/15/07 ..................... 25,000 26,250
Albritton Communications 9.75% 11/30/07 ............. 25,000 25,313
American Builders and Contractors 10.63%
05/15/07 .......................................... 25,000 26,063
American Safety Razor 9.88% 08/01/05 ................ 25,000 26,750
American Standard 10.88% 05/15/99 ................... 25,000 26,438

<PAGE>
for international diversification 21

Global Assets Series
Statement of Net Assets (Continued)

BONDS (Continued)
United States (Continued)
Principal Market Value
Amount (U.S. $)
---------- ------------
Atrium 10.50% 11/15/06 ......................... $ 25,000 $ 26,250
Calpine 10.50% 05/15/06 ........................ 25,000 27,000
Century Communications 9.75% 02/15/02 .......... 25,000 26,313
Cinemark 9.63% 08/01/08 ........................ 25,000 25,875
Clark Materials Handling 10.75% 11/15/06 ....... 25,000 26,688
Cole National Group 9.88% 12/31/06 ............. 25,000 26,688
Commonwealth Aluminum 10.75% 10/01/06 .......... 25,000 26,875
Consumers International 10.25% 04/01/05 ........ 50,000 54,250
Costilla Energy Notes 10.25% 10/01/06 .......... 25,000 26,250
Decisionone Holdings 0.00% 08/01/08 ............ 25,000 16,500
Decisionone Notes 9.75% 08/01/07 ............... 25,000 26,188
Delta Beverage Group 9.75% 12/15/03 ............ 25,000 26,438
DiGiorgio 10.00% 06/15/07 ...................... 100,000 99,250
Dyncorp 9.50% 03/01/07 ......................... 25,000 25,438
Exide Corp 10.75% 12/15/02 ..................... 25,000 26,375
First Nationwide Holdings 9.13% 01/15/03 ....... 25,000 26,125
Fleming 10.63% 12/15/01 ........................ 50,000 53,000
Four M 12.00% 06/01/06 ......................... 25,000 26,813
Graphic Controls 12.00% 09/15/05 ............... 25,000 27,938
Harris Chemical 10.75% 10/15/03 ................ 100,000 104,250
Hawk 10.25% 12/01/03 ........................... 25,000 26,563
HCC Industries 10.75% 05/15/07 ................. 25,000 26,188
Healthsouth Rehabilitation 9.50% 04/01/01 ...... 25,000 26,313
Hollinger International Publishing 9.25%
03/15/07 ....................................... 25,000 25,875
Hollywood Theaters 10.63% 08/01/07 ............. 25,000 26,688
Host Mar Travel Plaza 9.50% 05/15/05 ........... 25,000 26,313
Huntsman 9.50% 07/01/07 ........................ 25,000 26,250
Hydrochem Industrial Services 10.38%
08/01/07 ....................................... 25,000 26,000
IMO Industries 11.75% 05/01/06 ................. 25,000 27,625
Insilco 10.25% 08/15/07 ........................ 50,000 51,875
Lamar Advertising 9.63% 12/01/06 ............... 25,000 26,688
Lenfest Communications 8.38% 11/01/05 .......... 25,000 25,125
Loomis Fargo 10.00% 01/15/04 ................... 50,000 50,375
Motors and Gears 10.75% 11/15/06 ............... 50,000 53,125
Muzak LP/Muzak Capital 10.00% 10/01/03 ......... 25,000 26,125
Nortek 9.25% 03/15/07 .......................... 25,000 25,438
Petro Stopping Centers 10.50% 02/01/07 ......... 25,000 26,375
PMI Acquisition 10.25% 09/01/03 ................ 25,000 26,500
Portola Packaging 10.75% 10/01/05 .............. 25,000 26,313
Precise Technology 11.13% 06/15/07 ............. 50,000 51,750
Pride Petroleum Services 9.38% 05/01/07 ........ 25,000 26,938
Primark 8.75% 10/15/00 ......................... 25,000 25,438
Ralphs Grocery 10.45% 06/15/04 ................. 50,000 56,250
Reliant Building 10.88% 05/01/04 ............... 100,000 104,000
Rogers Cable Systems 9.63% 08/01/02 ............ 25,000 26,500
Rogers Communications 8.88% 07/15/07 ........... 25,000 25,063
Trump-Atlantic City 11.25% 05/01/06 ............ 50,000 49,625
United Refining 10.75% 06/15/07 ................ 100,000 105,000
Westinghouse Air Brakes 9.38% 06/15/05 ......... 25,000 26,188
William Carter 10.38% 12/01/06 ................. 25,000 26,188
----------
1,981,262
----------
Total Bonds (cost $5,226,751) .................. 5,252,756
----------
<PAGE>
Principal Market Value
Amount (U.S. $)
---------- ------------
REPURCHASE AGREEMENTS - 12.20%
With Chase Manhattan Bank 5.68% 12/01/97
(dated 11/28/97, collateralized by
$681,000 U.S. Treasury Notes 8.25%
due 07/15/98, market value $712,346) .......... $ 697,000 $ 697,000
With JP Morgan Securities 5.70% 12/01/97
(dated 11/28/97, collateralized by
$428,000 U.S. Treasury Notes 5.125%
due 02/28/98, market value $432,703
and $256,000 U.S. Treasury Notes
5.125% due 04/30/98, market
value $257,002) .............................. 676,000 676,000
With PaineWebber 5.68% 12/01/97
(dated 11/28/97, collateralized by
$670,000 U.S. Treasury Notes 6.25%
due 06/30/98, market value $690,044) .......... 676,000 676,000
----------
Total Repurchase Agreements
(cost $2,049,000) ............................ 2,049,000
----------

TOTAL MARKET VALUE OF SECURITIES - 99.24%
(cost $15,377,472) ......................................... $16,659,801
RECEIVABLES AND OTHER ASSETS NET OF LIABILITIES - 0.76% ..... 128,401
-----------
NET ASSETS APPLICABLE TO 1,195,382 SHARES ($.01 PAR VALUE)
OUTSTANDING - 100.00% ....................................... $16,788,202
===========
NET ASSET VALUE - GLOBAL ASSETS SERIES
A CLASS ($6,939,413 / 493,775 shares) ...................... $14.05
======
NET ASSET VALUE - GLOBAL ASSETS SERIES
B CLASS ($4,445,309 / 316,677 shares) ...................... $14.04
======
NET ASSET VALUE - GLOBAL ASSETS SERIES
C CLASS ($3,093,857 / 221,134 shares) ...................... $13.99
======
NET ASSET VALUE - GLOBAL ASSETS SERIES
INSTITUTIONAL CLASS ($2,309,623 / 163,796 shares) .......... $14.10
======
<PAGE>

22 for international diversification

Global Assets Series
Statement of Net Assets (Continued)
Market Value
(U.S. $)
COMPONENTS OF NET ASSETS AT NOVEMBER 30, 1997:
Common stock, $.01 par value, 500,000,000 shares authorized
to the Series with 50,000,000 shares allocated to Global
Assets Series A Class, 25,000,000 shares allocated to
Global Assets Series B Class, 25,000,000 shares allocated
to Global Assets Series C Class, and 50,000,000 shares
allocated to Global Assets Series Institutional Class .......... $14,016,067
Undistributed net investment income ............................. 30,654
Accumulated net realized gain on investments .................... 1,460,656
Net unrealized appreciation of investments and foreign currencies 1,280,825
-----------
Total net assets ................................................ $16,788,202
-----------
- ------------------
* Non-income producing securities.
** Principal amount is stated in the currency in which each bond is
denominated.

Gbp - British Pounds Jpy - Japanese Yen
C$ - Canadian Dollars NZ$ - New Zealand Dollar
Nlg - Dutch Gilders Sk - Swedish Kroner
Dem - German Deutsche Marks $ - U.S. Dollars
Itl - Italian Lira

+ Undistributed net investment income includes net realized gains (losses)
on foreign currencies. Net realized gains on foreign currencies are
distributed as net investment income in accordance with provisions of the
Internal Revenue Code.
ADR - American Depository Receipt
GDR - Global Depository Receipt

NET ASSET VALUE AND OFFERING PRICE PER SHARE -
GLOBAL ASSETS SERIES
Net asset value A Class (A) ......................................... $14.05
Sales charge (4.75% of offering price or 4.98% of the amount invested
per share)(B) ...................................................... 0.70
------
Offering price ...................................................... $14.75
======
- ------------------
(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 Bond Series
Statement of Net Assets
November 30, 1997
Principal Market Value
Amount* (U.S. $)
BONDS - 93.54%
Canada - 8.53%
Autobahn Schnell 8.50% 3/3/03 ................ C$60,000 $ 47,476
Deutsche Bank 7.00% 1/7/04 200,000 149,563
Export-Inport Bank of Japan 7.75% 10/8/02 .... 270,000 206,413
General Electric Capital of Canada 7.125%
2/12/04 ..................................... 80,000 60,176
Government of Canada 10.25% 3/15/14 .......... 250,000 257,092
Japan Highway 7.875% 9/27/02 ................. 500,000 384,001
KFW International Finance 6.50% 12/28/01 ..... 120,000 87,368
Kingdom of Norway 8.375% 1/27/03 ............. 120,000 94,583
Ontario Hydro 10.00% 3/19/01 ................. 270,000 217,077
----------
1,503,749
----------
Denmark - 1.82%
Kingdom of Denmark 7.00% 11/15/07 ............ Dk2,000,000 321,405
----------
321,405
----------
Germany - 13.02%
Abbey National Treasury 5.625% 9/30/02 ....... Dem 500,000 290,274
Baden Wurt L-Finance NV 5.25% 9/26/01 ........ 600,000 344,417
Baden Wurt L-Finance NV 6.625% 8/20/03 ....... 75,000 45,178
Bundesrepblik Deutscheland 8.375% 5/21/01 .... 490,000 309,082
Deutsche Pfandbrief Hypotheken 5.625%
2/7/03 ...................................... 200,000 115,259
International Bank Reconstruction &
Development 6.125% 9/27/02 ................... 600,000 354,690
Republic of Austria 7.25% 5/3/07 ............. 500,000 315,928
Republic of Finland 5.50% 2/9/01 ............. 900,000 520,197
----------
2,295,025
----------
Italy - 7.87%
Italian Government 9.50% 2/1/01 ..............Itl 1,000,000,000 648,135
Italian Government 12.00% 1/1/03 ............. 1,000,000,000 739,377
----------
1,387,512
----------
Japan - 5.16%
Federal National Mortgage Association 2.00%
12/20/99 .................................... Jpy 60,000,000 483,180
International Bank of Reconstruction &
Development 4.50% 6/20/00 .................... 25,000,000 214,894
Republic of Italy 3.50% 6/20/01 .............. 25,000,000 212,571
----------
910,645
----------
Netherlands - 7.92%
Netherlands Government 9.00% 5/15/00 ......... Nlg 1,000,000 553,432
Netherlands Government 7.50% 1/15/23 ......... 1,400,000 842,746
----------
1,396,178
----------
New Zealand - 9.51%
Government of New Zealand 6.50% 2/15/00 ...... NZ$ 200,000 122,271
Government of New Zealand 8.00% 2/15/01 ...... 900,000 572,677
Government of New Zealand 8.00% 4/15/04 ...... 1,500,000 981,632
----------
1,676,580
----------

<PAGE>
for international diversification 23

Global Bond Series
Statement of Net Assets (Continued)
BONDS (Continued)

Principal Market Value
Amount* (U.S. $)
---------- ------------

Spain - 2.86%
Bonos Y Obligation del Estado 0.0% 1/31/01 ..... Sp25,000,000 $ 166,605
Bonos Y Obligation Del Estado 0.0% 1/31/08 ..... 50,000,000 337,873
-----------
504,478
-----------
Sweden - 2.87%
Swedish Government 13.00% 6/15/01 .............. Sk 1,300,000 205,769
Swedish Government 10.25% 5/5/03 ............... 1,000,000 154,432
Swedish Government 8.00% 8/15/07 ............... 1,000,000 145,774
-----------
505,975
-----------
United Kingdom - 7.17%
Abbey National Treasury 8.00% 4/2/03 ........... Gbp 40,000 69,502
Depfa Finance 7.125% 11/11/03 .................. 220,000 370,187
Glaxo Wellcome 8.75% 12/1/05 ................... 230,000 423,918
Ontario Province 6.875% 9/15/00 ................ 85,000 141,501
SmithKline Beecham Notes 8.375% 12/29/00 ....... 150,000 259,050
-----------
1,264,158
-----------
United States - 26.81%
J. Sainsbury 6.25% 3/27/02 ..................... $ 100,000 99,250
Korea Electric Power 6.375% 12/1/03 ............ 200,000 179,250
Matsushita Electric 7.25% 8/1/02 ............... 200,000 206,875
Republic of Finland 7.875% 7/28/04 ............. 200,000 218,125
U.S. Treasury Bonds 13.375% 8/15/01 ............ 1,500,000 1,875,960
U.S. Treasury Note 5.625% 11/30/98 ............. 300,000 299,754
U.S. Treasury Note 7.50% 11/15/01 .............. 500,000 528,735
U.S. Treasury Note 6.25% 2/15/03 ............... 700,000 712,334
U.S. Treasury Note 6.25% 2/15/07 ............... 200,000 204,894
U.S. Treasury Inflation Index 3.375% 1/15/07 ... 405,968 400,638
-----------
4,725,815
-----------
Total Bonds (cost $16,674,985) ................. 16,491,520
-----------

REPURCHASE AGREEMENTS - 3.57%
With Chase Manhattan 5.68% 12/01/97
dated 11/28/97, collateralized by
$209,000 U.S. Treasury Notes 8.25% due
07/15/98 market value $218,675) ................... 214,000 214,000
With JP Morgan Securities 5.70% 12/01/97
(dated 11/28/97, collateralized by
$131,000 U.S. Treasury Notes 5.125% due
02/28/98 market value $132,831
and $79,000 U.S. Treasury Notes 5.125% due
04/30/98 market value $78,894) .................... 208,000 208,000
With PaineWebber 5.68% 12/01/97 (dated
11/28/97, collateralized by $206,000 U.S. .........
Treasury Notes 6.25% due 06/30/98 market
value $211,829 ) ................................. 207,000 207,000
-------
Total Repurchase Agreements (cost $629,000) ........ 629,000
-------

<PAGE>

TOTAL MARKET VALUE OF SECURITIES - 97.11%
(cost $17,303,985) ........................................ $17,120,520
RECEIVABLES AND OTHER ASSETS NET OF LIABILITIES - 2.89% .... 508,906
-----------
NET ASSETS APPLICABLE TO 1,632,202 SHARES ($.01 PAR
VALUE) OUTSTANDING - 100.00% .............................. $17,629,426
===========

NET ASSET VALUE - GLOBAL BOND SERIES A CLASS
($4,567,271 / 423,343 shares) ............................. $10.79
======
NET ASSET VALUE - GLOBAL BOND SERIES B CLASS
($1,080,843 / 100,165 shares) ............................. $10.79
======
NET ASSET VALUE - GLOBAL BOND SERIES C CLASS
($702,857 / 65,470 shares) ................................ $10.74
======
NET ASSET VALUE - GLOBAL BOND SERIES INSTITUTIONAL CLASS
($11,278,455 / 1,043,224 shares) .......................... $10.81
======

COMPONENTS OF NET ASSETS AT NOVEMBER 30, 1997:
Common stock, $.01 par value, 500,000,000 shares
authorized to the Series 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 ......................................... $ 17,870,968
Distributions in excess of net investment income ............. (104,026)
Accumulated net realized gain on investments ................. 40,498
Net unrealized depreciation of investments and foreign
currencies .................................................. (178,014)
------------
Total net assets ............................................. $ 17,629,426
============
- --------------
* Principal amount is stated in the currency in which each bond is
denominated.

Gbp - British Pounds Jpy - Japanese Yen
C$ - Canadian Dollars NZ$ - New Zealand Dollars
Dk - Danish Krona Sp - Spanish Pesetas
Nlg - Dutch Gilders Sk - Swedish Kroner
Dem - German Deutsche Marks $ - U.S. Dollars
Itl - Italian Lire

NET ASSET VALUE AND OFFERING PRICE
PER SHARE - GLOBAL BOND SERIES
Net asset value A Class (A) ....................................... $10.79
Sales charge (4.75% of offering price or 5.00% of the amount
invested per share)(B) ............................................ 0.54
------
Offering price .................................................... $11.33
======
- --------------
(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>
24 for international diversification

Delaware Group Global & International Funds, Inc.
Emerging Markets Series
Statement of Net Assets
November 30, 1997

Number Market Value
of Shares (U.S. $)
--------- ------------
COMMON STOCK - 91.70%
Argentina - 4.24%
Central Puerto S.A. Class B ..................... 80,000 $ 216,479
Transportadora de Gas del sur,S.A. Class B ...... 70,600 151,845
YPF Sociedad Anonima ............................ 10,000 335,625
-----------
703,949
-----------
Brazil - 12.70%
Aracruz Celulose S.A. ADR ....................... 11,250 161,719
Centrais Electricas de Santa Catarina S.A. GDR .. 1,000 104,000
COMPANHIA ENERGETICA DE MINAS GERAIS S.A. GDR ... 7,550 363,910
Companhia Paranaense de Energia Copel S.A. ADR .. 7,878 118,662
Elevadores Atlas S.A ............................ 18,000 235,337
Lojas Renner S.A ................................ 4,100,000 121,811
Metalurgica Gerdau .............................. 110,387,018 309,142
*Rossi Residential GDR ........................... 24,800 151,900
TELECOMMUNICACOES BRASILEIRAS S.A. ADR .......... 4,350 454,031
Usinas Siderurgicas de Minas Gerais S.A. ADR .... 13,370 86,103
-----------
2,106,615
-----------
Chile - 4.48%
Administradora de Fondos de Pensiones Provida
S.A. ADR ........................................ 15,100 258,588
Banco BHIF ADR .................................. 13,000 224,250
Empresa Nacional Electricidad S.A. ADR .......... 14,050 260,803
-----------
743,641
-----------
Egypt - 1.93%
*Paints and Chemical GDR ......................... 32,000 320,000
-----------
320,000
-----------
Germany - 0.30%
*Egis RT ......................................... 1,150 48,899
-----------
48,899
-----------
Greece - 3.33%
Attica Enterprises S.A .......................... 28,775 309,347
Hellenic Bottling Company S.A ................... 10,280 242,206
-----------
551,553
-----------
Hong Kong - 6.35%
*First Tractor ................................... 434,000 258,256
*Guangdong Kelon Electric Holding ................ 229,000 254,764
*Guangshen Railway ............................... 1,150,000 245,463
*Shenzhen Expressway ............................. 1,674,000 294,509
-----------
1,052,992
-----------
Hungary - 2.10%
*Magyar Tavkozlesi ADR ........................... 7,725 156,431
Mol Magyar Olaj-es GDR .......................... 9,150 192,150
-----------
348,581
-----------
India - 8.75%
Gujarat Ambuja Cement GDR ....................... 14,600 116,800
India Fund, (The) .............................. 50,560 341,280
Larsen & Toubro GDR ............................. 16,200 159,975

- --------
Top 10 stock holdings, representing 24.6% of net assets, are in boldface.

<PAGE>
Common Stock (Continued)

Number Market Value
of Shares (U.S. $)
--------- ------------
India (Continued)
TATA ENGINEERING & LOCOMOTIVE LIMITED GDR ..... 48,300 $ 468,510
*VIDESH SANCHAR NIGAM LIMITED .................. 27,500 364,375
----------
1,450,940
----------
Indonesia - 0.91%
*PT Bank Dagang National ....................... 716,750 78,332
PT Semen Gresik ............................... 52,000 36,584
PT United Tractors ............................ 77,000 35,764
----------
150,680
----------
Israel - 4.13%
Bank Hapoalim ................................. 120,000 293,167
ISRAEL CHEMICALS LIMITED ...................... 298,581 392,586
----------
685,753
----------
Malaysia - 8.45%
Leader Universal Holdings ..................... 89,000 30,427
Petronas Dagangan Berhad ...................... 306,000 294,667
Public Finance Berhad ......................... 105,000 34,701
Resorts World Berhad .......................... 224,000 319,088
ROTHMANS OF PALL MALL BERHAD .................. 58,000 512,251
Sime Darby Berhad ............................. 210,000 209,402
----------
1,400,536
----------
Mexico - 7.14%
ALFA, S.A. DE C.V. CLASS A .................... 55,015 413,466
Cemex S.A. de C.V. Class B .................... 36,000 177,308
*Grupo Minsa ADR ............................... 13,000 97,500
*Grupo Minsa S.A. Class C ...................... 117,000 82,525
VITRO S.A. ADR ................................ 31,900 412,706
----------
1,183,505
----------
Peru - 3.65%
Banco de Credito del Peru ..................... 113,380 129,149
Cementos Lima S.A ............................. 14,085 279,475
Creditcorp Limited ............................ 10,750 196,188
----------
604,812
----------
Poland - 2.12%
ELEKTRIM SPOLKA AKCYJNA ....................... 36,500 351,409
----------
351,409
----------
Russia - 4.12%
Gazprom ADR ................................... 5,000 106,875
Gazprom ADR Reg. S ............................ 4,200 89,754
Lukoil Holding ADR ............................ 3,100 249,736
*Mosenergo ADR ................................. 6,600 237,138
----------
683,503
----------
Slovenia - 0.79%
*Blagovno Trgovinski Center GDR ................ 9,615 75,959
SKB Banka GDR ................................. 4,000 55,500
----------
131,459
----------

<PAGE>
for international diversification 25

Emerging Markets Series
Statement of Net Assets (Continued)
Common Stock (Continued)

Number Market Value
of Shares (U.S. $)
--------- ------------
South Africa - 6.05%
Amalgamated Banks of South Africa ............. 34,000 $ 209,500
Anglo American Corporation of South
Africa Limited ................................ 7,500 312,210
Sappi Limited ................................. 39,600 221,564
Sasol Limited ................................. 25,800 260,260
----------
1,003,534
----------
South Korea - 1.01%
Cho Hung Bank Limited GDR ..................... 3,955 9,492
Pohang Iron & Steel Limited ADR ............... 4,060 157,957
----------
167,449
----------
Taiwan - 3.14%
Asia Cement GDR ............................... 24,000 276,000
*Yageo GDR ..................................... 21,000 244,230
----------
520,230
----------
Thailand - 3.95%
Hana Microelectronics Public Co. Limited ...... 94,200 245,337
K.R. Precision ................................ 21,100 132,717
*Ruang Khao 2 Fund ............................. 1,003,100 118,302
Thai Reinsurance Public Co. Limited ........... 86,000 158,477
----------
654,833
----------
Turkey - 2.06%
*NETAS-NORTHERN ELECKRIK TELEKOMUNIKAYSON A.S .. 870,000 342,319
----------
342,319
----------
Total Common Stock (cost $18,005,344) ......... 15,207,192
----------

WARRANTS - 0.02%
Hong Kong - 0.01%
*Guangdong Investment 7/99 ..................... 14,800 2,144
----------
2,144
----------
Indonesia - 0.01%
*PT Bank Dagang Nasional 2/14/00 ............... 68,250 895
----------
895
----------
Total Warrants (cost $0) ...................... 3,039
----------

Principal
Amount
REPURCHASE AGREEMENTS - 6.84%
With Chase Manhattan 5.68% 12/01/97
(dated 11/28/97, collateralized by
$377,000 U.S. Treasury Notes 8.25% due
07/15/98 market value $394,589) ................. $ 387,000 387,000
With JP Morgan Securities 5.70% 12/01/97
(dated 11/28/97, collateralized by
$237,000 U.S. Treasury Notes 5.125%
due 02/28/98 market value $239,686
and $142,000 U.S. Treasury Notes 5.125%
due 04/30/98 market value $142,361) ............. 374,000 374,000
With PaineWebber 5.68% 12/01/97
(dated 11/28/97, collateralized by
$371,000 U.S. Treasury Notes 6.25% due
06/30/98 market value $382,235) ................. 374,000 374,000
----------
Total Repurchase Agreements (cost $1,135,000) .... 1,135,000
----------

<PAGE>

TOTAL MARKET VALUE OF SECURITIES - 98.56%
(cost $19,140,344) ........................................ $16,345,231
RECEIVABLES AND OTHER ASSETS NET OF LIABILITIES - 1.44% ..... 238,856
-----------
NET ASSETS APPLICABLE TO SHARES 1,628,993 ($.01 PAR VALUE)
OUTSTANDING - 100.00% ..................................... $16,584,087
===========

NET ASSET VALUE - EMERGING MARKETS SERIES A CLASS
($9,664,905 / 947,271 shares) .............................. $10.20
======
NET ASSET VALUE - EMERGING MARKETS SERIES B CLASS
($3,483,897 / 344,478 shares) .............................. $10.11
======
NET ASSET VALUE - EMERGING MARKETS SERIES C CLASS
($1,518,645 / 150,168 shares) .............................. $10.11
======
NET ASSET VALUE - EMERGING MARKETS SERIES INSTITUTIONAL CLASS
($1,916,640 / 187,076 shares) .............................. $10.25
======

COMPONENTS OF NET ASSETS AT NOVEMBER 30, 1997:
Common stock, $.01 par value, 500,000,000 shares
authorized to the Series 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 ............................................ $ 18,563,263
Accumulated net realized gain on investments .................... 817,175
Net unrealized depreciation of investments and foreign currencies (2,796,351)
------------
Total net assets ................................................ $ 16,584,087
============
- ------------
* Non-income producing securities
ADR - American Depository Receipt
GDR - Global Depository Receipt

NET ASSET VALUE AND OFFERING PRICE PER SHARE -
EMERGING MARKETS SERIES
Net asset value A Class (A) ....................................... $10.20
Sales charge (4.75% of offering price or 5.00% of the amount
invested per share)(B) ............................................ 0.51
------
Offering price ..................................................... $10.71
======
- ----------
(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>
26 for international diversification

Delaware Group Global & International Funds, Inc.
Statements of Operations
Year Ended November 30, 1997

<TABLE>
<CAPTION>
International Equity Global Assets Global Bond Emerging Markets
Series Series Series Series
-------------------- ------------- ----------- ----------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest ............................................. $ 737,338 $ 527,224 $ 1,054,746 $ 105,525
Dividends ............................................ 5,762,848 249,914 -- 289,369
Foreign tax withheld ................................. (525,444) (13,954) (1,657) (20,260)
----------- ----------- ----------- -----------
5,974,742 763,184 1,053,089 374,634
----------- ----------- ----------- -----------

EXPENSES:
Management fees ...................................... 1,412,913 126,579 111,059 185,509
Custodian fees ....................................... 108,748 37,872 15,488 29,155
Dividend disbursing and transfer agent
fees and expenses ................................ 853,597 69,581 34,639 70,172
Distribution expense ................................. 614,964 89,193 31,013 57,194
Registration fees .................................... 84,273 36,300 59,777 51,271
Reports and statements to shareholders ............... 68,021 7,437 6,080 11,285
Accounting fees and salaries ......................... 98,192 8,136 7,392 8,262
Professional fees .................................... 12,999 10,584 2,825 13,827
Directors' fees ...................................... 4,255 1,641 1,599 1,587
Taxes (other than taxes on income) ................... 1,735 1,917 81 949
Amortization of organization expenses ................ 56 9,236 9,439 29,599
Other ................................................ 34,890 10,200 10,292 4,419
----------- ----------- ----------- -----------
3,294,643 408,676 289,684 463,229
Less expenses absorbed by Delaware International
Advisers Ltd. ....................................... (12,818) (155,671) (118,348) (151,196)
----------- ----------- ----------- -----------
Total Expenses ....................................... 3,281,825 253,005 171,336 312,033
----------- ----------- ----------- -----------
NET INVESTMENT INCOME .............................. 2,692,917 510,179 881,753 62,601
----------- ----------- ----------- -----------

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCIES:
Net realized gain (loss) on:
Investment transactions .......................... 2,401,146 1,463,745 38,395 821,896
Foreign currencies ............................... 3,768,554 (113,295) 81,258 (64,711)
----------- ----------- ----------- -----------
Net realized gain ................................ 6,169,700 1,350,450 119,653 757,185

Net change in unrealized appreciation/depreciation of
investments and foreign currencies during the year (7,483,373) (605,292) (648,055) (2,722,301)
----------- ----------- ----------- -----------

NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCIES ............ (1,313,673) 745,158 (528,402) (1,965,116)
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ........................................... $ 1,379,244 $ 1,255,337 $ 353,351 $(1,902,515)
=========== =========== =========== ===========
</TABLE>

See accompanying notes

<PAGE>

for international diversification 27

Delaware Group Global & International Funds, Inc.
Statements Of Changes In Net Assets

<TABLE>
<CAPTION>
Year Ended Year Ended
11/30/97 11/30/96 11/30/97 11/30/96
--------------------------------- ---------------------------------
International Equity Series Global Assets Series
--------------------------------- ---------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS:
Net investment income ............... $ 2,692,917 $ 1,741,454 $ 510,179 $ 501,965
Net realized gain on investments
and foreign currencies ............. 6,169,700 2,397,646 1,350,450 99,273
Net change in unrealized
appreciation/depreciation
on investments and foreign
currencies during the period ....... (7,483,373) 18,843,223 (605,292) 1,712,261
------------- ------------- ------------- -------------
Net increase (decrease) in net
assets resulting from operations ... 1,379,244 22,982,323 1,255,337 2,313,499
------------- ------------- ------------- -------------

DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
A Class ............................ (2,797,661) (1,501,747) (336,743) (212,365)
B Class ............................ (314,247) (74,702) (127,562) (51,947)
C Class ............................ (67,804) (3,258) (52,779) (9,120)
Institutional Class ................ (1,209,385) (392,431) (87,203) (75,192)
Net realized gain on
investment transactions:
A Class ............................ (123,938) (745,692) (45,735) (74,656)
B Class ............................ (15,415) (44,400) (17,933) (16,187)
C Class ............................ (2,682) (178) (4,527) (183)
Institutional Class ................ (46,296) (141,939) (8,230) (53,001)
------------- ------------- ------------- -------------
(4,577,428) (2,904,347) (680,712) (492,651)
------------- ------------- ------------- -------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold:
A Class ............................ 95,608,942 38,422,216 3,460,095 8,438,344
B Class ............................ 50,802,495 6,523,042 2,221,214 4,060,119
C Class ............................ 19,377,282 1,845,151 1,859,189 1,143,923
Institutional Class ................ 54,385,504 26,182,932 213,172 331,779
Net asset value of shares issued upon
reinvestment of dividends from net
investment income and net realize
gain on investment transactions:
A Class ............................ 2,781,683 2,118,387 375,195 282,156
B Class ............................ 301,251 111,164 140,100 65,864
C Class ............................ 67,923 3,130 53,622 8,954
Institutional Class ................ 1,248,194 528,525 95,433 128,194
------------- ------------- ------------- -------------
224,573,274 75,734,547 8,418,020 14,459,333
------------- ------------- ------------- -------------
Cost of shares repurchased:
A Class ............................ (75,048,166) (27,755,641) (8,950,771) (1,051,829)
B Class ............................ (29,347,424) (521,619) (2,858,059) (348,362)
C Class ............................ (9,214,761) (74,679) (124,369) (64,066)
Institutional Class ................ (16,596,084) (8,689,470) (334,720) (683,685)
------------- ------------- ------------- -------------
(130,206,435) (37,041,409) (12,267,919) (2,147,942)
------------- ------------- ------------- -------------
Increase (decrease) in net
assets derived from capital
share transactions ................. 94,366,839 38,693,138 (3,849,899) 12,311,391
------------- ------------- ------------- -------------
NET INCREASE (DECREASE)
IN NET ASSETS ...................... 91,168,655 58,771,114 (3,275,274) 14,132,239

NET ASSETS:
Beginning of period ................. 136,158,064 77,386,950 20,063,476 5,931,237
------------- ------------- ------------- -------------
End of period ....................... $ 227,326,719 $ 136,158,064 $ 16,788,202 $ 20,063,476
============= ============= ============= =============
</TABLE>

<PAGE>

RESTUBBED FROM TABLE ABOVE

<TABLE>
<CAPTION>
6/10/96*
Year Ended Year Ended to
11/30/97 11/30/96 11/30/97 11/30/96
------------------------------- -------------------------------
Global Bond Series Emerging Markets Series
------------------------------- -------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income ............... $ 881,753 $ 278,433 $ 62,601 $ 32,304
Net realized gain on investments
and foreign currencies ............. 119,653 50,372 757,185 28,782
Net change in unrealized
appreciation/depreciation
on investments and foreign
currencies during the period ....... (648,055) 400,732 (2,722,301) (74,050)
------------ ------------ ------------ ------------
Net increase (decrease) in net
assets resulting from operations ... 353,351 729,537 (1,902,515) (12,964)
------------ ------------ ------------ ------------

DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
A Class ............................ (305,700) (139,610) (2,696) --
B Class ............................ (63,377) (25,740) -- --
C Class ............................ (31,300) (4,004) -- --
Institutional Class ................ (651,174) (152,736) (9,242) --
Net realized gain on
investment transactions:
A Class ............................ (12,933) (29,823) (20,222) --
B Class ............................ (2,428) (3,812) (2,270) --
C Class ............................ (424) (227) (1,540) --
------------ ------------ ------------ ------------
Institutional Class ................ (23,842) (32,515) (27,727) --
------------ ------------ ------------ ------------
(1,091,178) (388,467) (63,697) --
------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold:
A Class ............................ 2,749,127 2,975,307 16,953,861 3,468,879
B Class ............................ 716,211 604,051 5,637,884 280,706
C Class ............................ 601,901 103,594 1,675,859 215,531
Institutional Class ................ 5,493,756 6,958,524 2,304,964 3,760,583
Net asset value of shares issued upon
reinvestment of dividends from net
investment income and net realize
gain on investment transactions:
A Class ............................ 261,143 155,552 22,478 --
B Class ............................ 48,687 17,929 2,081 --
C Class ............................ 30,822 3,929 1,540 --
Institutional Class ................ 674,758 183,302 36,969 --
------------ ------------ ------------ ------------
10,576,405 11,002,188 26,635,636 7,725,699
------------ ------------ ------------ ------------
Cost of shares repurchased:
A Class ............................ (1,684,418) (670,947) (8,593,077) (939,883)
B Class ............................ (341,785) (59,739) (1,724,911) --
C Class ............................ (30,665) (247) (128,601) (14,851)
Institutional Class ................ (1,151,567) (1,518,887) (4,355,115) (41,634)
------------ ------------ ------------ ------------
(3,208,435) (2,249,820) (14,801,704) (996,368)
------------ ------------ ------------ ------------
Increase (decrease) in net
assets derived from capital
share transactions ................. 7,367,970 8,752,368 11,833,932 6,729,331
------------ ------------ ------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS ...................... 6,630,143 9,093,438 9,867,720 6,716,367

NET ASSETS:
Beginning of period ................. 10,999,283 1,905,845 6,716,367 --
------------ ------------ ------------ ------------
End of period ....................... $ 17,629,426 $ 10,999,283 $ 16,584,087 $ 6,716,367
============ ============ ============ ============
</TABLE>

- ------------------
*Date of commencement of trading.
See accompanying notes

<PAGE>

28 for international diversification

Delaware Group Global & International Funds, Inc.
Financial Highlights

Selected data for each share of the Series outstanding throughout each
period were as follows:

<TABLE>
<CAPTION>
International Equity Series A Class
------------------------------------------------
Year Ended
11/30/97 11/30/96 11/30/95 11/30/94 11/30/93
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ...................................... $14.640 $12.190 $11.920 $11.250 $9.590

Income from investment operations:
Net investment income(1) .............................................. 0.220 0.490 0.297 0.140 0.499
Net realized and unrealized gain on investments and foreign currencies 0.245 2.385 0.628 0.895 1.636
-------- -------- -------- -------- --------
Total from investment operations ...................................... 0.465 2.875 0.925 1.035 2.135
-------- -------- -------- -------- --------

Less dividends and distributions:
Dividends from net investment income .................................. (0.435) (0.280) (0.185) (0.225) (0.475)
Distributions from net realized gain on investment transactions ....... (0.020) (0.145) (0.470) (0.140) none
-------- -------- -------- -------- --------
Total dividends and distributions ..................................... (0.455) (0.425) (0.655) (0.365) (0.475)
-------- -------- -------- -------- --------
Net asset value, end of period ............................................ $14.650 $14.640 $12.190 $11.920 $11.250
======== ======== ======== ======== ========

Total return(2) ........................................................... 3.27% 24.22% 8.17% 9.23% 23.08%

Ratios and supplemental data:
Net assets, end of period (000 omitted) ............................... $112,425 $89,177 $62,251 $53,736 $31,673
Ratio of expenses to average net assets ............................... 1.70% 1.85% 2.07% 1.56% 1.25%
Ratio of expenses to average net assets prior to expense limitation ... 1.71% 1.95% 2.07% 1.82% 2.16%
Ratio of net investment income to average net assets .................. 1.46% 3.70% 2.57% 1.22% 3.91%
Ratio of net investment income to average net assets prior to expense
limitation ......................................................... 1.45% 3.60% 2.57% 0.96% 3.00%
Portfolio turnover .................................................... 8% 9% 21% 27% 24%
Average commission rate paid(3) ....................................... $0.0198 $0.0243 NA NA NA
</TABLE>
- ------------------
(1) Per share information for the years ended November 30, 1996, and 1997,
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 total
number of shares purchased and sold during the period for which there was a
commission charged.

<PAGE>

for international diversification 29

Financial Highlights (Continued)

<TABLE>
<CAPTION>
International Equity Series International Equity Series
B Class C Class
-------------------------------------- ----------------------------
9/6/94(1) 11/29/95(2)
Year Ended to Year Ended to
11/30/97 11/30/96 11/30/95 11/30/94 11/30/97 11/30/96 11/30/95
<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) ....................... 0.114 0.398 0.278 0.036 0.114 0.400 none
Net realized and unrealized gain (loss)
on investments and foreign currencies ......... 0.246 2.377 0.567 (0.966) 0.246 2.375 (0.050)
-------- -------- -------- -------- -------- -------- --------
Total from investment operations ............... 0.360 2.775 0.845 (0.930) 0.360 2.775 (0.050)
-------- -------- -------- -------- -------- -------- --------

Less dividends and distributions:
Dividends from net investment income ........... (0.340) (0.200) (0.145) (0.030) (0.340) (0.280) none
Distributions from net realized gain on investment
transactions .................................. (0.020) (0.145) (0.470) none (0.020) (0.145) none
-------- -------- -------- -------- -------- -------- --------
Total dividends and distributions .............. (0.360) (0.345) (0.615) (0.030) (0.360) (0.425) none
-------- -------- -------- -------- -------- -------- --------
Net asset value, end of period ..................... $14.560 $14.560 $12.130 $11.900 $14.540 $14.540 $12.190
======== ======== ======== ======== ======== ======== ========

Total return(4) .................................... 2.54% 23.38% 7.46% (7.24%) 2.54% 23.39% (5)

Ratios and supplemental data:
Net assets, end of period (000 omitted) ........ $31,914 $10,878 $3,471 $624 $11,811 $1,909 $5
Ratio of expenses to average net assets ........ 2.40% 2.55% 2.77% 2.26% 2.40% 2.55% (5)
Ratio of expenses to average net assets
prior to expense limitation ................... 2.41% 2.65% 2.77% 2.52% 2.41% 2.65% (5)
Ratio of net investment income to average
net assets .................................... 0.76% 3.00% 1.87% 0.52% 0.76% 3.00% (5)
Ratio of net investment income to average
net assets prior to expense limitation ........ 0.75% 2.90% 1.87% 0.26% 0.75% 2.90% (5)
Portfolio turnover ............................. 8% 9% 21% 27% 8% 9% (5)
Average commission rate paid(6) ................ $0.0198 $0.0243 NA NA $0.0198 $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) Per share information for the years ended November 30, 1996, and 1997,
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 Class B and 1% for Class C shares.
(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.

<PAGE>

30 for international diversification

Financial Highlights (Continued)

<TABLE>
<CAPTION>
International Equity Series Institutional Class
-----------------------------------------------
Year Ended
11/30/97 11/30/96 11/30/95 11/30/94 11/30/93

<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ...................................... $14.710 $12.240 $11.970 $11.290 $9.590

Income from investment operations:
Net investment income(1) .............................................. 0.267 0.530 0.323 0.166 0.594
Net realized and unrealized gain on investments and foreign currencies 0.238 2.405 0.637 0.899 1.581
-------- -------- -------- -------- --------
Total from investment operations ...................................... 0.505 2.935 0.960 1.065 2.175
-------- -------- -------- -------- --------

Less dividends and distributions:
Dividends from net investment income .................................. (0.475) (0.320) (0.220) (0.245) (0.475)
Distributions from net realized gain on investment transactions ....... (0.020) (0.145) (0.470) (0.140) none
-------- -------- -------- -------- --------
Total dividends and distributions ..................................... (0.495) (0.465) (0.690) (0.385) (0.475)
-------- -------- -------- -------- --------
Net asset value, end of period ............................................ $14.720 $14.710 $12.240 $11.970 $11.290
======== ======== ======== ======== ========

Total return .............................................................. 3.55% 24.68% 8.46% 9.47% 23.52%

Ratios and supplemental data:
Net assets, end of period (000 omitted) ............................... $71,177 $34,194 $11,660 $7,613 $3,959
Ratio of expenses to average net assets ............................... 1.40% 1.55% 1.77% 1.26% 0.95%
Ratio of expenses to average net assets prior to expense limitation ... 1.41% 1.65% 1.77% 1.52% 1.86%
Ratio of net investment income to average net assets .................. 1.76% 4.00% 2.87% 1.52% 4.21%
Ratio of net investment income to average net assets prior to expense
limitation ........................................................... 1.75% 3.90% 2.87% 1.26% 3.30%
Portfolio turnover .................................................... 8% 9% 21% 27% 24%
Average commission rate paid(2) ....................................... $0.0198 $0.0243 NA NA NA
</TABLE>
- ------------------
(1) Per share information for the years ended November 30, 1996, and 1997,
was based on the average shares outstanding method.
(2) 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>

for international diversification 31

Financial Highlights (Continued)

<TABLE>
<CAPTION>
Global Assets Series A Class Global Assets Series B Class
---------------------------- ----------------------------
12/27/94(1) 12/27/94(1)
Year Ended to Year Ended to
11/30/97 11/30/96 11/30/95 11/30/97 11/30/96 11/30/95
<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(2) .............................. 0.437 0.493 0.301 0.342 0.379 0.212
Net realized and unrealized gain on investments and
foreign currencies ................................... 0.843 1.572 1.839 0.848 1.606 1.848
-------- -------- -------- -------- -------- --------
Total from investment operations ...................... 1.280 2.065 2.140 1.190 1.985 2.060
-------- -------- -------- -------- -------- --------

Less dividends and distributions:
Dividends from net investment income .................. (0.490) (0.385) (0.240) (0.400) (0.295) (0.180)
Distributions from net realized gain on investment
transactions ......................................... (0.050) (0.270) none (0.050) (0.270) none
-------- -------- -------- -------- -------- --------

Total dividends and distributions ..................... (0.540) (0.655) (0.240) (0.450) (0.565) (0.180)
-------- -------- -------- -------- -------- --------
Net asset value, end of period ............................ $14.050 $13.310 $11.900 $14.040 $13.300 $11.880
======== ======== ======== ======== ======== ========

Total return(3) ........................................... 9.91% 18.17% 21.48% 9.18% 17.32% 20.73%

Ratios and supplemental data:
Net assets, end of period (000 omitted) ............... $6,939 $11,878 $3,122 $4,445 $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 ................................ 2.16% 2.72% 7.55% 2.86% 3.42% 8.25%
Ratio of net investment income to average net assets .. 3.24% 4.13% 4.75% 2.54% 3.43% 4.05%
Ratio of net investment income (loss) to average net
assets prior to expense limitation ................... 2.33% 2.66% (1.55%) 1.63% 1.96% (2.25%)
Portfolio turnover .................................... 74% 34% 57% 74% 34% 57%
Average commission rate paid(4) ....................... $0.0276 $0.0271 NA $0.0276 $0.0271 NA
</TABLE>
- ------------------
(1) Date of commencement of trading; ratios and total return have been
annualized.
(2) Per share information for the year ended November 30, 1997, 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 Class A shares. Does not include contingent
deferred sales charge which varies from 1% - 4% depending upon the holding
period for Class B 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>

32 for international diversification

Financial Highlights (Continued)

<TABLE>
<CAPTION>
Global Assets Series
Global Assets Series C Class Institutional Class
---------------------------- ----------------------------
11/29/95(1) 12/27/94(2)
Year Ended to Year Ended to
11/30/97 11/30/96 11/30/95 11/30/97 11/30/96 11/30/95

<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(3) ................................ 0.341 0.446 none 0.478 0.567 0.473
Net realized and unrealized gain (loss) on investments
and foreign currencies ................................. 0.849 1.534 (0.050) 0.857 1.533 1.697
-------- -------- -------- -------- -------- --------
Total from investment operations ........................ 1.190 1.980 (0.050) 1.335 2.100 2.170
======== ======== ======== ======== ======== ========

Less dividends and distributions:
Dividends from net investment income .................... (0.400) (0.350) none (0.525) (0.420) (0.240)
Distributions from net realized gain on investment
transactions ........................................... (0.050) (0.270) none (0.050) (0.270) none
-------- -------- -------- -------- -------- --------
Total dividends and distributions ....................... (0.450) (0.620) none (0.575) (0.690) (0.240)
-------- -------- -------- -------- -------- --------
Net asset value, end of period .............................. $13.990 $13.250 $11.890 $14.100 $13.340 $11.930
======== ======== ======== ======== ======== ========

Total return(4) ............................................. 9.21% 17.33% (5) 10.34% 18.38% 21.88%

Ratios and supplemental data:
Net assets, end of period (000 omitted) ................. $3,094 $1,185 $5 $2,310 $2,203 $2,191
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 ............................................. 2.86% 3.42% (5) 1.86% 2.42% 7.25%
Ratio of net investment income to average net assets .... 2.54% 3.43% (5) 3.54% 4.43% 5.05%
Ratio of net investment income (loss) to average net assets
prior to expense limitation ............................ 1.63% 1.96% (5) 2.63% 2.96% (1.25%)
Portfolio turnover ...................................... 74% 34% (5) 74% 34% 57%
Average commission rate paid(6) ......................... $0.0276 $0.0271 NA $0.0276 $0.0271 NA
</TABLE>
- ------------------
(1) Date of commencement of trading.
(2) Date of commencement of trading; ratios and total return have not been
annualized.
(3) Per share information for the year ended November 30, 1997, was based on the
average shares outstanding method.
(4) Does not include the contingent deferred sales charge of 1% for Class C
shares.
(5) The ratios of expenses and net investment income to average net assets,
portfolio turnover and total return have been omitted as management believes
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.

<PAGE>

for international diversification 33
Financial Highlights (Continued)

<TABLE>
<CAPTION>
Global Bond Series A Class Global Bond Series B Class
-------------------------- --------------------------

12/27/94(1) 12/27/94(1)
Year Ended to Year Ended to
11/30/97 11/30/96 11/30/95 11/30/97 11/30/96 11/30/95
<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) ................................ 0.625 0.755 0.659 0.550 0.679 0.565
Net realized and unrealized gain (loss) on investments
and foreign currencies ................................. (0.505) 0.730 1.171 (0.511) 0.735 1.205
-------- -------- -------- -------- -------- --------
Total from investment operations ........................ 0.120 1.485 1.830 0.039 1.414 1.770
======== ======== ======== ======== ======== ========

Less dividends and distributions:
Dividends from net investment income .................... (0.770) (0.875) (0.600) (0.699) (0.794) (0.540)
Distributions from net realized gain on investment
transactions ........................................... (0.040) (0.360) none (0.040) (0.360) none
-------- -------- -------- -------- -------- --------
Total dividends and distributions ....................... (0.810) (1.235) (0.600) (0.739) (1.154) (0.540)
-------- -------- -------- -------- -------- --------
Net asset value, end of period .............................. $10.790 $11.480 $11.230 $10.790 $11.490 $11.230
======== ======== ======== ======== ======== ========

Total return(3) ............................................. 1.24% 14.35% 18.79% 0.48% 13.51% 18.23%

Ratios and supplemental data:
Net assets, end of period (000 omitted) ................. $4,567 $3,467 $889 $1,081 $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 ..................................... 2.04% 5.00% 12.34% 2.74% 5.70% 13.04%
Ratio of net investment income to average net assets .... 5.76% 6.82% 7.70% 5.06% 6.12% 7.00%
Ratio of net investment income (loss) to average net
assets prior to expense limitation ..................... 4.97% 3.07% (3.39%) 4.27% 2.37% (4.09%)
Portfolio turnover ...................................... 76% 42% 98% 76% 42% 98%
</TABLE>
- ------------------
(1) Date of commencement of trading; ratios have been annualized and total
return has not been annualized.
(2) Per share information for the years ended November 30, 1996, and 1997, 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 for Class A shares and does not include
contingent deferred sales charge which varies from 1% - 4% depending upon
the holding period for Class B shares.

<PAGE>

34 for international diversification

Financial Highlights (Continued)
<TABLE>
<CAPTION>
Global Bond Series
Global Bond Series C Class Institutional Class
-------------------------- -------------------

11/29/95(1) 12/27/94(2)
Year Ended to Year Ended to
11/30/97 11/30/96 11/30/95 11/30/97 11/30/96 11/30/95
<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) .................... 0.551 0.680 none 0.658 0.788 0.782
Net realized and unrealized gain (loss) on
investments and foreign currencies ......... (0.512) 0.719 (0.036) (0.515) 0.732 1.088
------- ------- ------- ------- ------- -------
Total from investment operations ............ 0.039 1.399 (0.036) 0.143 1.520 1.870
------- ------- ------- ------- ------- -------

Less dividends and distributions:
Dividends from net investment income ........ (0.699) (0.839) (0.054) (0.813) (0.910) (0.600)
Distributions from net realized gain on
investment transactions .................... (0.040) (0.360) none (0.040) (0.360) none
------- ------- ------- ------- ------- -------
Total dividends and distributions ........... (0.739) (1.199) (0.054) (0.853) (1.270) (0.600)
------- ------- ------- ------- ------- -------
Net asset value, end of period ................ $10.740 $11.440 $11.240 $10.810 $11.520 $11.270
======= ======= ======= ======= ======= =======

Total return(4) ............................... 0.49% 13.51% (5) 1.45% 14.68% 19.21%

Ratios and supplemental data:
Net assets, end of period (000 omitted) ....... $703 $118 $5 $11,278 $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 ........................... 2.74% 5.70% (5) 1.74% 4.70% 12.04%
Ratio of net investment income to average
net assets ................................... 5.06% 6.12% (5) 6.06% 7.12% 8.00%
Ratio of net investment income (loss) to average
net assets prior to expense limitation ....... 4.27% 2.37% (5) 5.27% 3.37% (3.09%)
Portfolio turnover ............................ 76% 42% (5) 76% 42% 98%
</TABLE>
- ------------------
(1) Date of commencement of trading.
(2) Date of commencement of trading; ratios have been annualized and total
return has not been annualized.
(3) Per share information for the years ended November 30, 1996, and 1997, was
based on the average shares outstanding method.
(4) Does not include the contingent deferred sales charge of 1% for C Class
shares.
(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.

<PAGE>
for international diversification 35

Financial Highlights (Continued)

<TABLE>
<CAPTION>
Emerging Markets Series
---------------------------------------------------------------------------------------
A Class B Class C Class Institutional Class
------------------- ------------------- ------------------- -------------------
6/10/96(1) 6/10/96(1) 6/10/96(1) 6/10/96(1)
Year Ended to Year Ended to Year Ended to Year Ended to
11/30/97 11/30/96 11/30/97 11/30/96 11/30/97 11/30/96 11/30/97 11/30/96
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..... $9.970 $10.000 $9.940 $10.000 $9.940 $10.000 $9.990 $10.000

Income from investment operations:
Net investment income (loss)(2) ........ 0.062 0.018 (0.020) (0.051) (0.019) (0.051) 0.098 0.047
Net realized and unrealized gain (loss)
on investments and foreign currencies . 0.253 (0.048) 0.265 (0.009) 0.264 (0.009) 0.262 (0.057)
------- ------ ------- ------ ------- ------ ------- ------
Total from investment operations ....... 0.315 (0.030) 0.245 (0.060) 0.245 (0.060) 0.360 (0.010)
------- ------ ------- ------ ------- ------ ------- ------

Less dividends and distributions:
Dividends from net investment income ... (0.010) none none none none none (0.025) none
Distributions from net realized gain
on investment transactions ........... (0.075) none (0.075) none (0.075) none (0.075) none
------- ------ ------- ------ ------- ------ ------- ------
Total dividends and distributions ...... (0.085) none (0.075) none (0.075) none (0.100) none
------- ------ ------- ------ ------- ------ ------- ------
Net asset value, end of period ...........$10.200 $9.970 $10.110 $9.940 $10.110 $9.940 $10.250 $9.990
======= ====== ======= ====== ======= ====== ======= ======

Total return(3) .......................... 3.19% (0.30%) 2.48% (0.60%) 2.48% (0.60%) 3.64% (0.10%)

Ratios and supplemental data:
Net assets, end of period (000 omitted) $9,665 $2,518 $3,484 $282 $1,519 $199 $1,916 $3,717
Ratio of expenses to average net assets 2.00% 2.00% 2.70% 2.70% 2.70% 2.70% 1.70% 1.70%
Ratio of expenses to average net assets
prior to expense limitation ........... 3.02% 4.10% 3.72% 4.80% 3.72% 4.80% 2.72% 3.80%
Ratio of net investment income (loss)
to average net assets ................ 0.52% 0.17% (0.18%) (0.53%) (0.18%) (0.53%) 0.82% 0.47%
Ratio of net investment income (loss)
to average net assets prior to
expense limitation .................... (0.50%) (1.93%) (1.20%) (2.63%) (1.20%) (2.63%) (0.20%) (1.63%)
Portfolio turnover ..................... 65% 36% 65% 36% 65% 36% 65% 36%
Average commission rate paid(4) ........ $0.0038 $0.0073 $0.0038 $0.0073 $0.0038 $0.0073 $0.0038 $0.0073
</TABLE>
- ------------------
(1) Date of commencement of trading; ratios have been annualized and total
return has not been annualized.
(2) Per share information for the years ended November 30, 1996, and 1997, 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 Class A shares. Does not include the
contingent deferred sales charge which varies from 1% - 4% depending upon
the holding period for Class B and 1% for Class C 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>
36 for international diversification

DELAWARE GROUP GLOBAL & INTERNATIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS
NOVEMBER 30, 1997
- -------------------------------------------------------------------------------

Delaware Group Global & International Funds, Inc. (the "Fund") 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 the related notes pertain to: 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-end investment companies under the Investment Company Act of 1940. 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.

The investment objective of each Series is as follows:

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

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

Emerging Markets Series: To seek long-term 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 Series.

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. 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.

<PAGE>

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 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 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 report 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 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 Series' understanding of the applicable country's tax rules and
rates. Each Series declares and pays dividends from capital gains annually and
from net investment income as follows: the International Equity Series and the
Global Assets Series, quarterly; the Global Bond Series, monthly; the Emerging
Markets Series, 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, each
Series' pays Delaware International Advisers Ltd. (DIAL), the investment
manager, an annual fee which is based on its net assets less the fees paid
to the unaffiliated directors for the International Equity Series, the
Global Assets Series and the Global Bond Series. The management fee for the
Emerging Markets Series is calculated without consideration of amounts paid
to unaffiliated directors. DIAL has entered

<PAGE>
for international diversification 37

Notes To Financial Statements (Continued)

2.Investment Management and Other Transactions with Affiliates
(Continued)
into a sub-advisory agreement with Delaware Management Company, Inc.
(DMC), an affiliate, 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:

International Global Global Emerging
Equity Series Assets Series Bond Series Markets Series
------------- ------------- ----------- --------------
<S> <C> <C> <C> <C>
Management fee as a percentage of average
daily net assets (per annum) .75% .75% .75% 1.25%
</TABLE>

DIAL has elected to waive its fees and reimburse each Series to the
extent that annual operating expenses, exclusive of taxes, interest,
brokerage commissions, extraordinary expense and distribution 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 May 31, 1998. Total expenses absorbed by DIAL for
the year ended November 30, 1997 were as follows:

International Global Global Emerging
Equity Series Assets Series Bond Series Markets Series
------------- ------------- ----------- --------------
<S> <C> <C> <C> <C>

Total expenses absorbed
by DIAL . . . . . . . . $12,818 $155,671 $118,348 $151,196
</TABLE>

The Series have engaged Delaware Service Company, Inc. (DSC) and Delaware
Investment Retirement Services, Inc. (DIRSI), affiliates of DMC, to provide
dividend disbursing and transfer agent services for the Series. The Series
have also engaged DSC to provide accounting services. For the year ended
November 30, 1997, the amounts expensed for each Series were as follows:

International Global Global Emerging
Equity Series Assets Series Bond Series Markets Series
------------- ------------- ----------- --------------
<S> <C> <C> <C> <C>
Dividend disbursing, transfer agent
fees and expenses . . . . . . . . $853,597 $69,581 $34,639 $70,172
Accounting fees . . . . . . . . . 67,410 5,726 5,004 5,646
</TABLE>

<PAGE>

On November 30, 1997, the Series had payables to affiliates as follows:

International Global Global Emerging
Equity Series Assets Series Bond Series Markets Series
------------- ------------- ----------- --------------
<S> <C> <C> <C> <C>

Investment management fee payable
to DIAL . . . . . . . . . . . . . . . . . . . . $142,966 $0 $6,449 $9,749
Dividend disbursing, transfer agent
fees, accounting fees and
other expenses payable to DSC . . . . . . . . . 23,858 0 10,273 93,871
Other expenses payable to DMC and affiliates . . 69,784 34,263 20,197 202,464

</TABLE>

Pursuant to the Distribution Agreement, each Series 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 the year ended November 30, 1997, DDLP earned commissions on sales of the
Class A shares for each Series as follows:

International Global Global Emerging
Equity Series Assets Series Bond Series Markets Series
------------- ------------- ----------- --------------
<S> <C> <C> <C> <C>

$108,742 $12,750 $7,553 $14,310
</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 Series.

3. Investments
During the year ended November 30, 1997, each Series made purchases and
sales of investment securities other than U.S. government securities and
temporary cash investments as follows:
<TABLE>
<CAPTION>

International Global Global Emerging
Equity Series Assets Series Bond Series Markets Series
------------- ------------- ----------- --------------
<S> <C> <C> <C> <C>
Purchases . . . . . . . $106,717,476 $11,218,339 $17,659,039 $19,652,312
Sales . . . . . . . . . . . 13,558,256 14,877,817 10,519,605 8,624,285
</TABLE>

At November 30, 1997, the aggregate cost of securities and unrealized
appreciation (depreciation) for federal income tax purposes for each Series
were as follows:

International Global Global Emerging
Equity Series Assets Series Bond Series Markets Series
------------- ------------- ----------- --------------
<S> <C> <C> <C> <C>
Cost of Investments . . . . . . . . . . . . . $209,366,390 $15,393,649 $17,319,398 $ 19,272,334
Aggregate unrealized appreciation . . . . . . $ 33,504,416 $ 1,837,763 $ 274,727 $ 1,196,255
Aggregate unrealized depreciation . . . . . . (18,701,324) (571,611) (473,605) (4,123,358)
Net unrealized appreciation (depreciation). . $ 14,803,092 $ 1,266,152 $ (198,878) $ (2,927,103)

</TABLE>

<PAGE>
38 for international diversification

Notes To Financial Statements (Continued)

4. Capital Stock
Transactions in capital stock shares were as follows:

International Equity Series Global Assets Series Global Bond Series Emerging Markets Series
-----------------------------------------------------------------------------------------------------
Year 6/10/96*
Year Ended Year Ended Year Ended Ended to
11/30/97 11/30/96 11/30/97 11/30/96 11/30/97 11/30/96 11/30/97 11/30/96
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold:
A Class. . . . . . . 6,322,583 2,918,393 256,603 691,976 251,836 269,530 1,427,852 347,106
B Class. . . . . . . 3,317,692 491,774 163,601 331,355 65,290 54,768 469,643 28,337
C Class. . . . . . . 1,288,076 136,101 136,936 93,322 55,133 9,529 140,946 21,568
Institutional Class 3,519,724 1,980,425 15,591 27,341 504,713 623,108 193,572 376,121

Shares issued upon
reinvestment of
dividends from net
investment income
and net realized gain
on investment
transactions:
A Class. . . . . . . 193,856 169,454 28,560 23,328 24,085 14,232 2,273 --
B Class. . . . . . . 20,835 8,890 10,606 5,419 4,494 2,094 211 --
C Class. . . . . . . 4,643 237 3,999 725 2,867 359 156 --
Institutional Class 86,399 41,888 7,188 10,755 62,112 16,587 3,734 --
---------- ---------- -------- --------- -------- -------- ---------- --------
14,753,808 5,747,162 623,084 1,184,221 970,530 990,207 2,238,387 773,132
---------- ---------- -------- --------- -------- -------- ---------- --------

Shares repurchased:
A Class. . . . . . . (4,933,746) (2,103,224) (684,103) (85,002) (154,612) (60,913) (735,449) (94,511)
B Class. . . . . . . (1,893,676) (39,613) (218,266) (27,670) (31,190) (5,494) (153,713) --
C Class. . . . . . . (611,809) (5,431) (9,239) (5,032) (2,843) (23) (10,999) (1,503)
Institutional Class (1,096,146) (649,384) (24,094) (56,667) (106,037) (136,850) (382,197) (4,154)
---------- ---------- -------- --------- -------- -------- ---------- --------
(8,535,377) (2,797,652) (935,702) (174,371) (294,682) (203,280) (1,282,358) (100,168)
---------- ---------- -------- --------- -------- -------- ---------- --------
Net Increase (Decrease) 6,218,431 2,949,510 (312,618) 1,009,850 675,848 786,927 956,029 672,964
========== ========== ======== ========= ======== ======== ========== ========
</TABLE>

- -------------------
*Date of commencement of trading.

5. Lines of Credit
The Fund has committed lines of credit of $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 November 30, 1997, or at any time during the fiscal year.

6. Foreign Exchange Contracts
A Series will generally enter into forward foreign currency contracts as a way
of managing foreign exchange rate risk. A Series 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 Series 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 as an unrealized gain or loss. When the contract
is closed, 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 is recorded.

The use of forward foreign currency contracts does not eliminate
fluctuations in the underlying prices of the 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, a
Series could be exposed to risks if the counterparties to the contracts are
unable to meet the terms of their contracts.

<PAGE>
for international diversification 39

Notes To Financial Statements (Continued)

6.Foreign Exchange Contracts (Continued)
The following forward foreign currency contracts were outstanding at November
30, 1997 for each of the Series:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>

In Exchange Contract Settlement Unrealized
International Equity Series Contract to Receive For Value Date (Depreciation)
- ----------------------------------------------------------------------------------------------------------------------
1,746,850 Hong Kong Dollars $225,999 $225,974 12/1/97 ($25)

In Exchange Contract Settlement Unrealized
Global Assets Series Contract to Receive For Value Date (Depreciation)
- ----------------------------------------------------------------------------------------------------------------------
47,642 Hong Kong Dollars $6,163 $6,163 12/1/97 ($0)

In Exchange Contract Settlement Unrealized
Global Bond Series Contract to Deliver For Value Date Appreciation
- ----------------------------------------------------------------------------------------------------------------------
3,099,937 German Deutsche Marks $1,772,000 $1,766,793 2/27/98 $5,207
</TABLE>

7. 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 by the Series.

The Series 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 Series 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 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 Series' ability to dispose of such
securities in a timely manner and at a fair price when it is necessary to
liquidate such securities.

8. Securities Lending
Securities on loan are required at all times to be secured by collateral
at least equal to 102% of the market value of securities issued in the U.S.
and 105% of the market value of securities issued outside of the United
States. However, in the event of default or bankruptcy by the other party
to the agreement, realization and/or retention of the collateral may be
subject to legal proceedings. In the event that the borrower fails to return
loaned securities, and cash collateral being maintained by the borrower is
insufficient to cover the value of loaned securities, and provided such
collateral insufficiency is not the result of investment losses, the lending
agent has agreed to pay the amount of the shortfall to the Series or, at the
option of the lending agent, replace the loaned securities. The market value
of securities on loan to brokers and the related cash collateral received at
November 30, 1997, for the Series was as follows:

Market value of securities on loan cash collateral
- -------------------------------------------------------------------------------
International Equity Series $37,454,469 $40,083,850

<PAGE>

9. Subsequent Event
Each Series declared dividends from net investment income and distributions
from net realized gain on investment transactions payable December 30, 1997,
to shareholders of record December 19, 1997. Dividends per share from net
investment income were as follows:

International Global Global Emerging
Equity Series Assets Series Bond Series Markets Series
- --------------------------------------------------------------------------------
Class A $0.335 $0.125 $0.040 $0.020
Class B 0.255 0.085 0.030 --
Class C 0.255 0.085 0.030 --
Institutional Class 0.385 0.165 0.070 0.055

Distributions from net realized gain on investment transactions for all
classes were as follows:

International Global Global Emerging
Equity Series Assets Series Bond Series Markets Series
- -----------------------------------------------------------------------------
$0.155 $1.230 $0.030 $0.605

<PAGE>
40 for international diversification

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

We have audited the accompanying statements of net assets of Delaware
Group Global & International Funds, Inc. (International Equity Series,
Global Assets Series, Global Bond Series, and Emerging Markets Series) as
of November 30, 1997, and the related statements of operations for the year
then ended, and the statements of changes in net assets and the financial
highlights for each of the periods indicated therein. These financial
statements and financial highlights are the responsibility of the Fund's man
agement. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements and financial highlights. Our procedures
included confirmation of securities owned as of November 30, 1997, by corres
pondence with the custodian and brokers. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of each of the respective Series of Delaware Group Global &
International Funds, Inc. at November 30, 1997, the results of their
operations for the year then ended, and the changes in their net assets and
their financial highlights for each of the periods indicated therein, in
conformity with generally accepted accounting principles.

/s/ ERNST & YOUNG LLP

Philadelphia, Pennsylvania
January 5, 1998

<PAGE>

This annual report is for the information of Global & International Funds'
shareholders, but it may be used with prospective investors when preceded
or accompanied by current Prospectuses for International Equity Fund and
Global & International Funds, which set forth details about charges,
expenses, investment objectives and operating policies of each Fund. You
should read each prospectus carefully before you invest. Summary investment
results are documented in each Funds' 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.

Board of Directors
Wayne A. Stork
Chairman
Delaware Group of Funds
Philadelphia, PA

Jeffrey J. Nick
President and Chief Executive Officer
Delaware Group of Funds
Philadelphia, PA

Walter P. Babich
Board Chairman, Citadel Constructors, Inc.
King of Prussia, PA

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

Ann R. Leven
Treasurer, National Gallery of Art
Washington, DC

W. Thacher Longstreth
City Councilman
Philadelphia, PA

Thomas F. Madison
President and Chief Executive Officer
MLM Partners, Inc.
Minneapolis, MN

Charles E. Peck
Secretary/Treasurer, Enterprise Homes, Inc.
Fredericksburg, VA

Affiliated Officers

David K. Downes
Executive Vice President, Chief Financial Officer and Chief Operating Officer
Delaware Group of Funds
Philadelphia, PA
George M. Chamberlain, Jr.
Senior Vice President, Secretary
and General Counsel
Delaware Group of Funds
Philadelphia, PA

Bruce D. Barton
President and Chief Executive Officer
Delaware Distributors, L.P.
Philadelphia, PA

directors
& officers

Investment Manager
Delaware Management Company, Inc.
Philadelphia, Pennsylvania
International Affiliate
Delaware International Advisers Ltd.
London, England

National Distributor
Delaware Distributors, L.P.
Philadelphia, Pennsylvania

Shareholder Servicing,
Dividend Disbursing
and Transfer Agent
Delaware Service Company, Inc.
Philadelphia, Pennsylvania

1818 Market Street
Philadelphia, PA 19103-3682
<PAGE>

This report must be preceded or accompanied by current Global & International
Funds and International Equity Fund prospectus and the Delaware Group Fund
Performance Update for the most recently completed calendar quarter.
International investing has special risks that include less stable economies
and governments, currency fluctuations and different accounting standards.
For a prospectus of any other Delaware Group fund, contact your financial
adviser or Delaware Group.

For Shareholders
1.800.523.1918

For Securities Dealers
1.800.362.7500

For Financial Institutions
Representatives Only
1.800.659.2265

Be sure to consult your financial adviser when making investments. Mutual
funds can be a valuable part of your financial plan; however, shares of the
Funds 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 Funds are not bank or credit union
deposits.

DELAWARE
GROUP
=====================
Philadelphia o London

Copy Rights Delaware Distributors, L.P.

Printed in the USA
on recycled paper

(416)
AR-034[11/97]TKO1/98

(Photo of Globes)