<PAGE>
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Dear Shareholder,
The first six months of Global Dividend and Income Fund's second fiscal
year, December 1, 1994, through May 31, 1995, saw a dramatic shift in the
financial markets. The U.S. Federal Reserve raised interest rates just once
in this six-month period, compared to six increases that occurred in fiscal
1994. Long-term interest rates have declined steadily, and the U.S. stock
market has responded positively to a slower growth, lower interest rate
environment.
As you can see in the chart below, the Fund's market price responded
favorably to recent conditions. And, the Fund's six-month net asset value
return of +10.10% is a welcome improvement over our 1994 fiscal period, when
sharply rising interest rates severely impacted high-yielding,
income-oriented investments in the U.S. and abroad. We are pleased to report
that Global Dividend and Income Fund continued to meet its primary objective
for shareholders -- providing high current income. Effective January 1995, the
Fund's monthly dividend increased 5.7% from $0.088 to $0.093 per share.
During the first six months of the 1995 fiscal year, the Fund paid a total of
$0.713 per share from net investment income. As of May 31, 1995, the Fund's
distribution yield was 8.58% based on a market price of $13.00.
- -------------------------------------------------------------------------------
Total Return (Capital + Income)
December 1, 1994 - May 31, 1995
Based on Based on
Performance at Market
Net Asset Value Performance
- -------------------------------------------------------------------------------
Global Dividend and Income Fund
(NYSE Symbol: DGF) +10.10% +17.15%
- -------------------------------------------------------------------------------
S&P 500 Index +19.20%
- -------------------------------------------------------------------------------
MSCI Europe Australia and South East Asia Index +11.77%
- -------------------------------------------------------------------------------
Lipper Closed-End Income Fund Average +16.99%
- -------------------------------------------------------------------------------
The S&P 500 is an unmanaged index. The Lipper Closed-End Income Fund average
included 11 funds during this period.
- -------------------------------------------------------------------------------
International equity markets have been quite volatile over the past
six months, as uncertainty surrounded Latin American and other emerging
markets in the wake of Mexico's peso devaluation. Fortunately, we had minimal
exposure to emerging markets, though international holdings, in general, were
affected by the volatility.
The U.S. bond market rallied as interest rates declined, leading to
strong performance from high-yield corporate bonds. Our focus remained on the
higher quality tiers in this market due to the uncertainty of continued
economic growth. The performance of these bonds was satisfactory, though the
market's riskier, lower quality bonds actually provided the best returns in
this period. As for global bonds, in general, the fiscal half was very strong;
however, currency changes led to disparate returns from individual foreign
markets. Our avoidance of markets we believed to be overvalued, namely Japan
and Germany, prevented us from capturing the full breadth of the rally in
global bonds.
The remainder of this report contains a more in-depth review of both
market conditions and the portfolio positioning that contributed to your
Fund's return so far this fiscal year. As always, we thank you for your
confidence in the Delaware Group.
Sincerely,
/s/ Wayne A. Stork /s/ Brian F. Wruble
- ----------------------------------- ---------------------------------------
Wayne A. Stork Brian F. Wruble
Chairman, Board of Directors President and Chief Executive Officer
Delaware Group Delaware Group
Global Dividend and Income Fund, Inc. Global Dividend and Income Fund, Inc.
<PAGE>
Capital Appreciation Drives U.S. Stock Market in 1995
High-yielding stocks are generally less volatile than the overall market,
represented by the S&P 500 Index. One reason for this is that in times of
market declines, the yield on these stocks may provide underlying support for
stock prices. In a strongly rising market like we have enjoyed to date in 1995,
where capital appreciation is the dominant component of total return, we
would expect such stocks to rise in value, but not as much as the broad
market. Nonetheless, over time, we expect dividends to be a significant
component of total return and a key source of income for this Fund, and
therefore remain committed to high-yielding equity securities.
Within the U.S. equity portion of the portfolio, emphasis is on real
estate investment trusts and utilities, which generally provide the highest
income of the sectors we invest in.
REAL ESTATE INVESTMENT TRUSTS
Real Estate Investment Trusts (REITs) -- companies that own real
estate in a variety of sectors including apartments, office and industrial
space, and shopping malls -- have shown improving fundamentals; however,
some investors seem to believe that a slowing economy might hinder the real
estate recovery. As a result, this sector has seen only mild appreciation so
far this year and therefore, in our view, still offers attractive yields and
values.
We are optimistic about the future potential of the REIT holdings in
the portfolio. We see continued absorption of the office and industrial
space created by the over-building of the '80s. This results in higher
occupancies, greater demand, and consequently, potential growth of rental
income. REITs pass income from rent increases to shareholders (i.e., your
Fund) in the form of dividend increases. From 1992 through 1994, REIT
dividend growth averaged 7% annually, compared to a 0% growth rate from 1987
through 1991. We believe this dividend growth will be a key factor in future
price appreciation of these securities, as well as increasing the income
potential of the portfolio.
(Photo of Bernie Schaffer)
Bernie Schaffer
Senior Portfolio Manager
U.S. Equities
UTILITIES
We have maintained a small position in electric utilities, which
offer attractive income potential, but also face increasing competitive
pressure as a result of government deregulation. We did increase our
position in Entergy which came under some price pressure as a result of
rallying interest rates, restructuring charges and rate reduction and
consequently reached a level at which we considered it undervalued. Since
then, as interest rates declined and the merger has improved cost-cutting
efforts, the stock has appreciated.
2
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CONVERTIBLE SECURITIES
The principal advantage of convertible securities in this Fund is the
opportunity to participate in the capital appreciation of the underlying
common stock while earning a fixed income payment. If a company's common
stock does not meet our minimum dividend yield guidelines, we can include
these companies in the portfolio, through their convertible securities.
This ability can be beneficial in a market such as we've seen this year,
when many lower yielding common stocks; which we typically would not
purchase are experiencing very strong returns.
(Graphic Pie Chart, Plot Points listed below)
Global Dividend and Income Fund Portfolio
Foreign Fixed Income 25%
Foreign Equities 14%
U.S. Equities 35%
U.S. Fixed Income 26%
Based on net assets at May 31, 1995
Earlier last year, a rising interest rate environment made convertible
securities relatively less attractive and we reduced our allocation to
convertibles in favor of common stocks. Late in 1994, as we believed that
long-term interest rates were peaking and that further rate increases would
be minimal, convertibles became increasingly attractive to us; they were
selling below what we saw as true value and offered good risk/reward
characteristics.
U.S. High-Yield Bond Strategy Focuses on Higher Quality Tiers
U.S. high-yield bonds, representing 23% of net assets of the Fund,
are an important part of our strategy because of their high income and their
low correlation with the other asset classes in this Fund, which makes them
valuable for diversification purposes. As was explained in the opening letter,
our strategy has generally been to focus on the higher quality tiers of the
high-yield market. We believe that, over time, this prudent approach will
help the Fund continue to meet its objective of high current income.
(photo of Paul Matlack)
Paul Matlack
Senior Portfolio Manager
U.S. High-Yield Corporate Bonds
Over the past six months, with lower interest rates and only a slight
slowing in the economy, "CCC" rated bonds have been the best performing
segment of the high-yield market. However, "CCC" rated bonds involve
substantially more credit risk than the higher quality tiers which we
primarily own and, in the past, their returns have not fully compensated
investors for that added risk. In the face of the short-term outperformance
of these lower rated bonds, our focus on "B" and "BB" rated bonds has
constrained the Fund's participation in the market rise, though in this
market, it did help to reduce the Fund's volatility. We believe the economy
may continue to slow and that our higher quality holdings, though still
subject to the credit risk of the high-yield market, will better withstand
the financial pressures put on lesser quality credits in any economic
slowdown.
3
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(photo of Clive Gillmore)
Clive Gillmore
Senior Portfolio Manager
Foreign Stocks
FOREIGN STOCK PORTFOLIO REMAINS FOCUSED ON CORE MARKETS
In line with our strategy of focusing on stocks with attractive yet
sustainable yields and good long-term growth prospects, we are currently
focusing on investments in the United Kingdom, Australia, Hong Kong, France,
New Zealand and Spain. In spite of the dollar's weakness relative to the yen,
the Japanese market remains weak from the perspective of American investors.
It has a very low yield, is expensive based on our dividend discount
methodology and, in our opinion, its currency is overvalued and vulnerable
at current levels. Early in our fiscal period, the Japanese market suffered
from poor economic news and sentimentally negative emotional factors such as
the Kobe earthquake. We still believe that the Japanese market offers poor
potential relative to other opportunities around the world and, accordingly,
are significantly underweighted.
Changes in our strategy over the last six months have focused on
investing in some of the previously weak, smaller Asian markets such as
Indonesia. This reallocation was accomplished by halving our position in
Canada. Though the international equity portfolio underperformed its
benchmark, given its risk-averse profile and the fact that high-yield
international stocks continued to struggle during this period it has done
well. We believe the international portfolio of the Fund is now positioned
to do well in an environment of improving sentiment toward the U.S. dollar.
(photo of Ian Sims)
Ian Sims
Senior Portfolio Manager
Foreign Fixed Income
FOREIGN BONDS
Returns from most world bond markets, which hovered around 10% in
local terms during the first half, were significantly affected by currency
changes. The dollar weakened against the Japanese yen and the German mark
while the Italian lira and the Australian dollar both fell relative to the
U.S. dollar. As a result, bond returns in U.S. dollars ranged from over 31%
for Japan to only 4% for Italy.
Currency uncertainty affected the bond markets as well. Just as the
yen rose because the Japanese did not invest their current account surplus
abroad, so did the value of their bonds. On the other hand, companies with
high government debt like Italy or Sweden, or with trade balance problems
like Australia, experienced weak bond markets.
This year has been difficult for value-oriented foreign bond
investors because the best performing markets were those that looked the
riskiest at the turn of the year. Our approach to currency management is
primarily to limit holdings in those countries whose currency appears
significantly overvalued, i.e. risky. Therefore, we had no exposure to bonds
denominated in Japanese yen or in German marks, markets that performed very
well in this period. We also had no exposure to bonds denominated in Italian
lira, which worked in our favor, as those bonds were weak. However, we believe
that going forward higher yielding markets like Italy, Canada and Sweden,
which have made great strides with their fiscal problems and now appear
undervalued, will offer greater opportunities than the markets that have led
so far this year.
4
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Outlook for the Remainder of the Fiscal Year
With about one-half of net assets in high-yielding equities (35% U.S. and
14% foreign) and the remaining assets in bonds and short-term reserves, we
believe the Fund is well-diversified and well-positioned for the balance of
our fiscal year to produce a high level of current income while participating
in the attractive equity markets at home and abroad.
Portfolio Leverage Strengthens Income Potential
As we've explained in the past, the Global Dividend and Income Fund
has the ability to leverage its portfolio -- that is, to borrow money for
additional investment -- up to 25% of the Fund's market value including
leverage. This is a tool that is not available to open-end funds and one that
can be an important contributor to a Fund's income and total return
potential. Leverage can be a useful tool when the interest rate environment
is such that what we expect to earn from the investments is greater than what
we must pay to borrow money. Though your Fund's management delayed leveraging
the portfolio in the wake of last year's interest rate increases and market
turbulance, we are actively evaluating economic and market conditions to
determine when the use of leverage is appropriate.
As with any investment, increased return potential can add to
potential risk. Leveraging could result in a higher degree of principal
volatility since the Fund will be more sensitive to market moves on both
the upside and the downside. We believe this risk is reasonable given the
potential benefits brought on by the use of leverage.
Delaware Merges with Lincoln National
We are pleased to tell you that the merger between the parent company
of your Fund's investment manager, Delaware Management Holdings, Inc. and a
subsidiary of Lincoln National Corporation, which was outlined in your Fund's
last shareholder report, was completed on April 3, 1995. Delaware Management
Holdings, Inc. is now a wholly-owned subsidiary of Lincoln National
Corporation, a diversified financial services company, headquartered in Fort
Wayne, Indiana. This merger provides the Delaware Group with opportunities
to meet the challenges of increasingly complex markets with our existing
team of portfolio managers and analysts, while remaining committed to our
fundamental investment philosophies.
5
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Reinvesting Dividends
If you don't need the monthly income for living expenses, we strongly
recommend that you consider having the dividends from Global Dividend and
Income Fund automatically reinvested. Here's why: let's say you invest
$10,000 into a fund that pays a hypothetical 10% dividend per year -- and
you don't reinvest it. At the end of the first year, you'd get a check for
$1,000. Assuming the fund's value stays constant at $10,000, you'd get
another check for $1,000 at the end of Year 2, Year 3 and so on. But if you
reinvest the $1,000 instead of spending it, in Year 2 you would have an
investment worth $11,000 and your dividend would be $1,100. Reinvesting that
$1,100 instead of spending it would give you an investment worth $12,100 in
Year 3 and a dividend of $1,210. In Year 4, your dividend would be $1,331,
and so on. As you can see from the chart below, your income can grow year by
year.
If you want to reinvest your dividends, and your shares are registered in
your name, call Investors Fiduciary Trust Company (IFTC) at 1-800-596-8396 and
tell the customer service representative your preference. You will probably
be asked to put your request in writing. If you have shares registered in
"Street" name, call your bank, broker or other nominee who holds the shares
to see if you are able to participate in our dividend reinvestment plan.
Share Repurchase Program Implemented
As was explained in the Fund's annual report, the Global Dividend and
Income Fund Board of Directors has approved an open market Share Repurchase
Program that authorizes the Fund's manager to purchase up to 10% of
outstanding shares on the floor of the New York Stock Exchange. We believe
this program could add to shareholder value in two ways. First, the
simultaneous increase in demand and decrease in supply of outstanding shares
could have a positive impact on the Fund's market price. Second, since the
share purchases are likely to be made at a time when the market price is less
than the underlying value of the assets, the result could be a higher net
asset value per share. There is, of course, no guarantee that these results
will occur.
During the past six months, we repurchased 56,800 shares (about 1% of
total outstanding on November 30, 1994) and believe the program was modestly
successful in impacting the Fund's market price. We may continue to utilize
this tool in the future depending on market conditions.
A STRATEGY TO INCREASE YOUR FUTURE INCOME:
REINVESTMENT OF DIVIDEND AND CAPITAL GAIN DISTRIBUTIONS
Annual Annual
Dividend with Dividend with
Dividends and Dividends and
Capital Gains Capital Gains
Reinvested in Cash
------------- --------------
Year 1 $1,000 $1,000
Year 2 $1,100 $1,000
Year 3 $1,210 $1,000
Year 4 $1,331 $1,000
Year 5 $1,464 $1,000
Year 6 $1,611 $1,000
Year 7 $1,772 $1,000
Year 8 $1,949 $1,000
Year 9 $2,144 $1,000
Year 10 $2,358 $1,000
Assumes $10,000 initial investment, 10% annual dividend and capital
gain distribution and does not include impact of income taxes.
This illustration shows only the potential impact of dividend reinvestment
on returns and does not reflect the past or future performance
of this or any other Fund.
6
<PAGE>
Financial Statements
DELAWARE GROUP GLOBAL DIVIDEND AND
INCOME FUND, INC.
STATEMENT OF NET ASSETS
May 31, 1995
(Unaudited)
NUMBER MARKET
OF SHARES VALUE
COMMON STOCK - 30.08%
AUTOMOTIVES AND AUTOMOTIVE PARTS - 0.91%
GKN plc.......................................... 51,000 $ 507,987
Turner & Newell plc.............................. 116,000 311,429
---------
819,416
---------
BANKING, FINANCE & INSURANCE - 2.33%
Aetna Life & Casualty............................ 15,000 894,375
Banco Popular Espanol ........................... 3,500 523,554
National Australia Bank.......................... 66,000 563,406
PT Bank Dagang Nasional.......................... 73,000 127,053
---------
2,108,388
---------
CHEMICALS - 0.54%
Jilin Chemical Industrial........................ 23,200 493,000
---------
493,000
---------
ENERGY - 1.22%
Elf Gabon........................................ 2,200 419,571
Royal Dutch Petroleum............................ 4,050 454,504
Santos........................................... 92,250 227,747
---------
1,101,822
---------
FOOD, BEVERAGE & TOBACCO - 4.08%
Dalgety plc ..................................... 73,750 521,359
Philip Morris Companies.......................... 22,000 1,603,250
S.A. Brewing Holdings Ltd........................ 170,000 346,280
Unigate.......................................... 77,000 477,057
UST.............................................. 25,000 746,875
---------
3,694,821
---------
HEALTHCARE & PHARMACEUTICALS - 0.73%
Bristol-Myers Squibb............................. 10,000 663,750
---------
663,750
---------
MEDIA, LEISURE & ENTERTAINMENT - 0.55%
Bass plc......................................... 54,000 500,123
---------
500,123
---------
METALS & MINING - 0.16%
Hartebeestfontein................................ 49,600 148,275
---------
148,275
---------
REAL ESTATE - 9.15%
Bay Apartment Communities........................ 45,000 821,250
Crown American Realty Trust ..................... 50,000 593,750
Evans Withycombe Residential .................... 27,800 559,475
FelCor Suite Hotels.............................. 25,000 634,375
JDN Realty REIT.................................. 47,000 945,875
Macerich Company (The)........................... 30,000 592,500
Oasis Residential................................ 25,000 553,125
<PAGE>
NUMBER MARKET
OF SHARES VALUE
COMMON STOCK (CONTINUED)
REAL ESTATE (CONTINUED)
Prime Residential................................ 52,500 $777,656
Reckson Associates Realty........................ 11,400 277,875
ROC Communities.................................. 35,000 765,625
Simon Property Group............................. 31,000 771,125
Smith (Charles E.) Residential Realty ........... 10,000 232,500
Sun Communities.................................. 20,000 477,500
Union Du Credit Bail Immobil .................... 2,700 281,364
---------
8,283,995
---------
RETAIL - 0.81%
Dickson Concepts................................. 600,000 339,364
Sime Darby - Hong Kong........................... 300,000 391,723
---------
731,087
---------
TECHNOLOGY - 0.36%
B.I.C.C.......................................... 62,000 329,952
---------
329,952
---------
TRANSPORTATION - 0.97%
Brambles Industries.............................. 42,000 414,155
Ocean Group plc.................................. 89,000 463,744
---------
877,899
---------
UTILITIES - 6.22%
British Columbia Telecom......................... 22,000 379,656
British Gas plc.................................. 91,000 437,302
Electrabel NPV................................... 3,150 662,036
Entergy.......................................... 20,000 495,000
Iberdrola........................................ 56,000 391,681
IPALCO Enterprises............................... 20,400 668,100
New England Electric System .................... 20,000 690,000
North West Water plc............................. 53,000 493,387
Rochester Gas & Electric......................... 40,000 855,000
Telecom Corp of New Zealand ..................... 139,000 554,000
---------
5,626,162
---------
MISCELLANEOUS - 2.05%
Ceramco Corporation Ltd.......................... 116,000 204,196
Cie De Navigation Mixte.......................... 1,950 380,523
Eridania Beghin-Say.............................. 2,550 386,800
Jardine Matheson Holdings Ltd ................... 64,800 508,680
Pacific Dunlop Ltd............................... 175,000 375,359
----------
1,855,558
----------
TOTAL COMMON STOCK (COST $27,264,265) 27,234,248
----------
7
<PAGE>
NUMBER MARKET
OF SHARES VALUE
CONVERTIBLE PREFERRED STOCK - 8.59%
BANKING, FINANCE & INSURANCE - 1.44%
Allstate 6.7647% pfd cv... ...................... 21,200 $824,150
American General Delaware $3.00 pfd cv "A" ...... 7,000 358,750
California Federal Bank 7.75% pfd cv "A" ........ 5,100 116,662
---------
1,299,562
---------
BUILDINGS, HOUSING & MATERIALS - 0.93%
Blue Circle Industries 7.625% pfd cv ............ 150,000 372,924
Kaufman & Broad Homes $1.52 pfd cv "B" .......... 30,500 468,938
---------
841,862
---------
CHEMICALS - 0.83%
ARCO 9.01% "Lyondell" Notes "DECS" .............. 29,700 746,213
---------
746,213
---------
INDUSTRIAL MACHINERY - 0.61%
MascoTech $1.20 pfd cv "DECS" ................... 40,000 555,000
---------
555,000
---------
METALS & MINING - 1.31%
AK Steel Holding 7.00% pfd cv ................... 26,600 724,850
Kaiser Aluminum $0.65 pfd cv "A" ................ 50,000 456,250
---------
1,181,100
---------
PAPER & FOREST PRODUCTS - 1.04%
*Stone Container Equity Linked
Indexed notes................................... 52,714 942,258
---------
942,258
---------
REAL ESTATE - 0.97%
Prime Retail 8.50% pfd cv "B" ................... 50,000 881,250
---------
881,250
---------
TECHNOLOGY - 0.82%
+Westinghouse Electric $1.30 pfd cv "C" ......... 50,000 743,750
---------
743,750
---------
UTILITIES - 0.64%
First Chicago 5.50% pfd cv "DECS"................ 35,000 581,875
---------
581,875
---------
TOTAL CONVERTIBLE PREFERRED STOCK
(COST $8,446,280)................................ 7,772,870
---------
PRINCIPAL
AMOUNT
NON-CONVERTIBLE BONDS - 47.74%
AEROSPACE & DEFENSE - 0.31%
K & F Industries sr sub deb
13.75% 2001................................US$ 270,000 279,450
---------
279,450
---------
<PAGE>
PRINCIPAL MARKET
AMOUNT VALUE
NON-CONVERTIBLE BONDS (CONTINUED)
AUTOMOTIVES AND AUTOMOTIVE PARTS - 0.87%
Exide sr notes 10.75% 2002 ..................US$ 400,000 $ 425,000
+Penda Industries sr notes 10.75% 2004 ......US$ 400,000 364,000
---------
789,000
---------
BANKING, FINANCE & INSURANCE - 10.10%
Abbey National Treasury
unsub deb 15.75% 1997.....................GRD 100,000,000 429,580
Aim Management Group sr sec notes
9.00% 2003................................US$ 51,000 50,490
Bank of Austria 10.875% 2004.................AUD 1,000,000 784,547
Bank of Greece matador bonds
12.50% 1997...............................ESP 80,000,000 649,297
Commonwealth Bank of Australia
unsec unsub 13.75% 1999...................AUD 500,000 424,213
Eurofima sr unsec unsub deb
9.875% 2007...............................AUD 2,000,000 1,505,215
European Bank for Reconstruction &
Development sr unsub marathon bonds
15.25% 1998...............................GRD 100,000,000 421,392
European Investment Bank deb
17.50% 1999...............................GRD 50,000,000 221,613
European Investment Bank
marathon bonds 14.00% 2001 ...............ESP 80,000,000 719,810
International Bank for Reconstruction &
Development sr unsub 15.50% 1997 ............GRD 700,000,000 3,041,447
International Finance marathon bonds
15.25% 1999...............................GRD 150,000,000 623,901
Mutual Group unsec sub deb
7.25% 2004................................GBP 200,000 274,431
---------
9,145,936
---------
BUILDINGS, HOUSING & MATERIALS - 0.66%
American Standard sr notes
10.875% 1999..............................US$ 450,000 486,000
Schuller International Group sr notes
10.875% 2004..............................US$ 100,000 110,250
---------
596,250
---------
CHEMICALS - 2.79%
Atlantis Group sr notes 11.00% 2003 ........US$ 400,000 408,000
Berry Plastics sr sub notes
12.25% 2004...............................US$ 600,000 618,000
Harris Chemical of North America
sr sub notes 10.75% 2003..................US$ 400,000 390,000
8
<PAGE>
PRINCIPAL MARKET
AMOUNT VALUE
NON-CONVERTIBLE BONDS (CONTINUED)
CHEMICALS (CONTINUED)
NL Industries sr sec notes
11.75% 2003...............................US$ 265,000 $ 282,225
+Polymer Group sr notes 12.75% 2002 .........US$ 400,000 408,000
Uniroyal Chemical Acquistion sr sub notes
11.00% 2003...............................US$ 400,000 420,000
---------
2,526,225
---------
CONSUMER PRODUCTS - 0.70%
Calmar sr sec notes 12.00% 1997 .............US$ 400,000 412,000
+Remington Arms sr sub notes
10.00% 2003...............................US$ 250,000 223,750
---------
635,750
---------
ENERGY - 0.54%
Ferrellgas sr sub notes 10.00% 2001 .........US$ 200,000 210,500
Global Marine sr sec notes
12.75% 1999...............................US$ 250,000 276,250
---------
486,750
---------
ENVIRONMENTAL SERVICES - 0.46%
Allied Waste Industries sr sub notes
10.75% 2004...............................US$ 400,000 418,000
---------
418,000
---------
FOOD, BEVERAGE & TOBACCO - 0.40%
Chiquita Brands sr notes
9.625% 2004...............................US$ 70,000 68,600
Purina Mills 10.25% 2003 ....................US$ 100,000 103,750
Specialty Foods sr sub notes
11.25% 2003...............................US$ 190,000 190,950
---------
363,300
---------
FOREIGN GOVERNMENT - 13.03%
National Bank of Hungary deb
10.00% 2003............. .................GBP 400,000 540,124
Poland Global 2.75% 2024 ....................US$ 2,000,000 785,000
Republic of Argentina 5.00% 2023 ............US$ 1,500,000 751,875
Republic of South Africa
10.75% 1998............. .................ZAL 8,000,000 1,838,164
Republic of South Africa
11.50% 2000...............................ZAL 8,000,000 1,786,214
Republic of Turkey unsec deb
9.00% 2003................................GBP 400,000 525,032
Spanish Government 10.50% 2003 ..............ESP 120,000,000 934,009
Swedish Government 9.00% 2009 ...............SEK 20,000,000 2,366,246
<PAGE>
PRINCIPAL MARKET
AMOUNT VALUE
NON-CONVERTIBLE BONDS (CONTINUED)
FOREIGN GOVERNMENT (CONTINUED)
Treasury Corp of Victoria
10.50% 2003...............................AUD 1,500,000 $1,154,553
**United Mexican States 6.25% 2019 ..........US$ 2,000,000 1,113,126
---------
11,794,343
----------
HEALTHCARE & PHARMACEUTICALS - 1.40%
HEALTHSOUTH Rehabilitation sr sub notes
9.50% 2001................................US$ 800,000 822,000
National Medical Enterprises sr sub notes
10.125% 2005..............................US$ 420,000 446,250
---------
1,268,250
---------
MEDIA, LEISURE & ENTERTAINMENT - 4.24%
Bally's Park Place Funding 1st mtg notes
9.25% 2004................................US$ 400,000 372,000
Century Communications sr notes
9.75% 2002................................US$ 600,000 610,500
Cinemark USA sr notes 12.00% 2002 ...........US$ 400,000 433,000
Four Seasons Hotel deb
11.05% 1996...............................CAD 800,000 588,638
Infinity Broadcasting sr sub notes
10.375% 2002..............................US$ 200,000 211,500
Jones Intercable sr notes
9.625% 2002...............................US$ 300,000 309,000
K - III Communications sr sec notes
10.625% 2002..............................US$ 400,000 421,000
Kloster Cruise Ltd. sr notes
13.00% 2003...............................US$ 185,000 157,250
Rogers Cablesystems sr sec notes
9.625% 2002...............................US$ 400,000 409,500
Santa Fe Hotel 1st sr sec mtg notes
11.00% 2000...............................US$ 112,000 101,360
Viacom International deb
10.25% 2001...............................US$ 200,000 223,000
---------
3,836,748
---------
METALS & MINING - 0.99%
Armco sr notes 11.375% 1999 ................US$ 250,000 261,250
G.S. Technologies sr notes
12.00% 2004...............................US$ 400,000 411,000
Inland Steel unsec notes 12.75% 2002 ........US$ 200,000 225,000
---------
897,250
---------
9
<PAGE>
PRINCIPAL MARKET
AMOUNT VALUE
NON-CONVERTIBLE BONDS (CONTINUED)
PAPER & FOREST PRODUCTS - 3.90%
Anchor Glass Container 10.25% 2002 ..........US$ 500,000 $ 510,000
Domtar deb 10.85% 2017.......................CAD 1,000,000 734,110
Domtar sr notes 11.75% 1999 .................US$ 400,000 445,000
Owens-Illinois sr amort deb
11.00% 2003...............................US$ 900,000 1,000,125
Rainy River Forest Product sr sec notes
10.75% 2001...............................US$ 300,000 318,000
Repap Wisconsin sr sec notes
9.25% 2002................................US$ 400,000 395,000
Sweetheart Cup sr sec notes
9.625% 2000...............................US$ 125,000 124,688
---------
3,526,923
---------
RETAIL - 2.27%
ASDA-MFI Group unsec unsub deb
10.875% 2010..............................GBP 500,000 879,687
Di Giorgio sr notes 12.00% 2003 .............US$ 350,000 264,250
Fleming Companies sr sub notes
10.625% 2001..............................US$ 300,000 317,250
Food 4 Less Supermarkets sr sub notes
13.75% 2001..............................US$ 350,000 381,500
Penn Traffic sr notes 10.65% 2004 ...........US$ 200,000 210,750
---------
2,053,437
---------
TECHNOLOGY - 0.82%
ADT Operations sr sub notes
9.25% 2003................................US$ 500,000 515,000
Unisys credit-sensitive notes
13.50% 1997...............................US$ 200,000 223,000
---------
738,000
---------
TRANSPORTATION - 0.99%
Eletson Holdings 1st pfd mtg notes
9.25% 2003................................US$ 200,000 195,500
Trans Ocean Container sr sub notes
12.25% 2004 ..............................US$ 500,000 507,500
Viking Star Shipping 1st pfd ship mtg notes
9.625% 2003 ............. ................US$ 200,000 196,000
---------
899,000
---------
UTILITIES - 1.40%
Comcast Cellular sr notes 0.00% 2000 ........US$ 600,000 441,000
Dial Page sr notes 12.25% 2000 ..............US$ 400,000 414,000
Midland Funding II deb 11.75% 2005 ..........US$ 400,000 416,940
---------
1,271,940
---------
<PAGE>
PRINCIPAL MARKET
AMOUNT VALUE
NON-CONVERTIBLE BONDS (CONTINUED)
MISCELLANEOUS - 1.87%
Cort Furniture Rental sr notes
12.00% 2000...............................US$ 350,000 $346,500
IMO Industries sr sub deb 12.25% 1997 .......US$ 294,000 298,410
Lamar Advertising sr sec notes
11.00% 2003...............................US$ 400,000 403,000
Scott's Hospitality unsec deb
10.95% 2001...............................CAD 800,000 644,994
---------
1,692,904
---------
TOTAL NON-CONVERTIBLE BONDS
(COST $42,046,104)........................ 43,219,456
CONVERTIBLE BONDS - 10.63%
BUILDINGS & MATERIALS - 0.63%
Schuler Homes sub deb 6.50% 2003 ............US$ 700,000 570,500
---------
570,500
---------
HEALTHCARE & PHARMACEUTICALS - 1.03%
Careline sr sub notes 8.00% 2001 ............US$ 500,000 455,000
+Columbia HCA Healthcare sub deb
6.75% 2006................................US$ 500,000 475,000
---------
930,000
---------
MEDIA, LEISURE & ENTERTAINMENT - 1.71%
Time Warner sr notes 8.75% 2015 .............US$ 1,500,000 1,554,375
---------
1,554,375
---------
METALS & MINING - 0.59%
MascoTech sub deb 4.50% 2003 ................US$ 750,000 534,375
---------
534,375
---------
PAPER & FOREST PRODUCTS - 0.23%
Repola Ltd sub deb 6.50% 2004 ...............FIM 1,000,000 206,587
---------
206,587
---------
REAL ESTATE - 6.44%
Developers Diversified Realty sub deb
7.00% 1999................................US$ 600,000 590,250
IRT Property sub deb 7.30% 2003 .............US$ 1,200,000 1,095,000
Liberty Property Trust sub deb
8.00% 2001................................US$ 1,000,000 986,250
LTC Properties sub deb 8.50% 2000 ...........US$ 500,000 497,500
Malan Realty Investors sub deb
9.50% 2004................................US$ 800,000 722,000
Mid-Atlantic Realty Trust sub deb
7.625% 2003...............................US$ 1,000,000 868,750
10
<PAGE>
PRINCIPAL MARKET
AMOUNT VALUE
CONVERTIBLE BONDS (CONTINUED)
REAL ESTATE (CONTINUED)
Sizeler Property Investors sub deb
8.00% 2003................................US$ 1,200,000 $ 1,069,500
---------
5,829,250
---------
TOTAL CONVERTIBLE BONDS (COST $9,961,097) 9,625,087
---------
SHORT-TERM SECURITIES - 2.73%
U.S. Treasury Bill 5.54% 06/08/1995 ........US$ 555,000 554,402
U.S. Treasury Bill 5.56% 06/08/1995 ........US$ 1,500,000 1,498,378
U.S. Treasury Bill 5.58% 06/08/1995 ........US$ 170,000 169,816
U.S. Treasury Bill 5.59% 06/08/1995 ........US$ 245,000 244,734
---------
TOTAL SHORT-TERM SECURITIES
(COST $2,467,330)............................ 2,467,330
---------
TOTAL MARKET VALUE OF SECURITIES
OWNED - 99.77% (COST $90,185,076)............ $90,318,991
UNREALIZED DEPRECIATION ON
FORWARD FOREIGN EXCHANGE
CONTRACTS++ - (0.02%)........................ (17,253)
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES - 0.25% .................. 227,957
---------
NET ASSETS APPLICABLE TO
6,650,647 SHARES ($0.01 PAR VALUE)
OUTSTANDING; EQUIVALENT TO
$13.61 PER SHARE - 100.00% .................. $90,529,695
===========
- ------------
DECS - Dividend Enhanced Convertible Security
REIT - Real Estate Investment Trust
*Restricted Securities - Investment in securities not registered under the
Securities Act of 1933. These securities have contractual restrictions on
resale (See Note 5).
** There are 2,000,000 rights attached to these bonds which carry no cost or
value to the Fund.
+ Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers (See Note 5).
++ See footnote 4 for detail of forward foreign exchange contracts.
US$ - U.S. dollars GRD - Greek drachmas
GBP - British pounds ZAL - South African rand
CAD - Canadian dollars SEK - Swedish kronas
ESP - Spanish pesetas FIM - Finnish markka
AUD - Australian dollars
<PAGE>
COMPONENTS OF NET ASSETS AT MAY 31, 1995:
Common stock, $0.01 par value, 500,000,000 shares
authorized to the Fund..................................... $93,204,226
Accumulated undistributed income (loss):
Net investment loss*....................................... (44,672)
Net realized loss on investments
and foreign currencies.................................. (2,737,191)
Net unrealized appreciation of investments
and foreign currencies.................................. 107,332
----------
Total net assets applicable to 6,650,647
shares of common stock; equivalent to
$13.61 per share........................................... $90,529,695
-----------
- ------------
*Net investment loss was calculated without consideration of net realized
gains on foreign currencies. Net realized gains on foreign currencies;
however, are distributed as net investment income in accordance with
provisions of the Internal Revenue Code.
See accompanying notes
11
<PAGE>
Delaware Group Global Dividend and
Income Fund, Inc.
Statement of Operations
For the Six Months Ended May 31, 1995
(Unaudited)
INVESTMENT INCOME:
Interest......................................... $3,234,600
Dividends........................................ 1,156,467 $4,391,067
---------
EXPENSES:
Management fees ................................. 307,202
Administrative fees.............................. 92,161
Reports to shareholders ......................... 26,321
Custodian fees .................................. 20,866
Directors' fees ................................. 12,545
Amortization of organization expenses ........... 12,376
Auditing ........................................ 10,913
Transfer agent fees ............................. 10,000
Taxes, other than taxes on income ............... 8,456
NYSE fees ....................................... 8,086
Other ........................................... 25,026 533,952
--------- ----------
NET INVESTMENT INCOME BEFORE
FOREIGN TAX WITHHELD.......................... 3,857,115
FOREIGN TAX WITHHELD............................. (40,029)
----------
NET INVESTMENT INCOME............................ 3,817,086
NET REALIZED LOSS AND UNREALIZED
GAIN ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on:
Investment transactions....................... (1,743,553)
Foreign currencies............................ 147,299
---------
Net realized loss................................ (1,596,254)
Net unrealized appreciation on investments and
foreign currencies during the period.......... 6,010,500
----------
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS
AND FOREIGN CURRENCIES........................ 4,414,246
----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS. ................... $8,231,332
==========
See accompanying notes
<PAGE>
Delaware Group Global Dividend and
Income Fund, Inc.
Statement of Changes in Net Assets
Six Months Ended For the Period
May 31, 1995 March 4, 1994* to
(Unaudited) November 30, 1994
OPERATIONS:
Net investment income ........................... $ 3,817,086 $ 5,628,333
Net realized loss on investments
and foreign currencies........................ (1,596,254) (1,140,937)
Net unrealized appreciation
(depreciation) on investments
and foreign currencies during the period ..... 6,010,500 (5,903,168)
----------- -----------
Net increase (decrease) in net assets resulting
from operations............................... 8,231,332 (1,415,772)
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income............................ (4,768,050) (4,722,041)
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from initial public offering
of shares (net of $765,151 offering costs) ... -- 93,813,021
Cost of shares repurchased ...................... (713,795) --
----------- -----------
Increase (decrease) in net assets derived from
capital share transactions ................... (713,795) 93,813,021
----------- -----------
NET INCREASE IN NET ASSETS ...................... 2,749,487 87,675,208
NET ASSETS:
Beginning of period....... ...................... 87,780,208 105,000
----------- -----------
End of period (including (over)/under
distributed net investment income of
($44,672)+ and $906,292, respectively) ....... $90,529,695 $87,780,208
=========== ===========
- -------------
* Commencement of operations.
+ Overdistributed net investment income was calculated without consideration
of net realized gains on foreign currencies. Net realized gains on foreign
currencies; however, are distributed as net investment income in accordance
with provisions of the Internal Revenue Code.
See accompanying notes
12
<PAGE>
Delaware Group Global Dividend and
Income Fund, Inc.
Notes to Financial Statements
May 31, 1995
(Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES
Delaware Group Global Dividend and Income Fund, Inc. (the "Fund") is a
diversified, closed-end management investment company organized under the
laws of Maryland and is registered under the Investment Company Act of 1940,
as amended. The Fund had no operations prior to March 4, 1994, other than the
sale of 7,447 shares of common stock for $105,000 to Delaware Management
Company, Inc., the investment manager of the Fund, on February 18, 1994.
Portfolio securities listed or traded on a national securities exchange,
except for debt securities, are valued at the last sale price on the exchange
where they are primarily traded. Securities listed on a foreign exchange are
valued at the last quoted sale price before the time when the Fund is valued.
Securities not traded on a particular day, over-the-counter securities and
government and agency securities are valued at the mean value between bid and
asked prices. Short-term instruments having a maturity of less than 60 days
are valued at amortized cost. Debt securities (other than short-term
obligations) are valued on the basis of valuations provided by a pricing
service when such prices are believed to reflect the fair value of such
securities. All assets and liabilities that are expressed in foreign
currencies are valued and translated into U.S. dollars at the exchange rate
of such currencies against the U.S. dollar as provided by the pricing service
as of 3:30 pm New York time; this constitutes a change from the times recited
in the Fund's prospectus for the valuation of securities and translation of
foreign currencies into U.S. dollars. Forward foreign currency contracts are
valued at the mean between the bid an asked prices of the contracts.
Interpolated values are derived when the settlement date of the contract is
on an interim date for which quotations are not available.
Security transactions are accounted for on the date the securities are
purchased or sold (trade date). Gains and losses are based upon the specific
identification method for both financial statement and federal tax purposes.
Dividend income and distributions to shareholders are recorded on the
ex-dividend date. Foreign dividends are also recorded on the ex-dividend date
or as soon after the ex-dividend date that the Fund is aware of such
dividends, net of all non-rebatable tax withholdings. Interest income and
expenses are recorded on the accrual basis.
A total of $124,000 was incurred in connection with organization of the Fund.
These costs were deferred and are being amortized ratably over a five-year
period from the date the Fund commenced operations.
No provision for federal income taxes has been made since it is the intention
of the Fund to comply with the provisions of the Internal Revenue Code
available to regulated investment companies and to make requisite
distributions to shareholders.
<PAGE>
2. INVESTMENT MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
In accordance with the terms of the Investment Management Agreement, the
compensation paid to Delaware Management Company, Inc. (DMC) is equal to (on
an annual basis) 0.70% of the Fund's average weekly net assets. The Fund has
also entered into an advisory agreement with Delaware International Advisers
Ltd. (DIAL) (the "Sub-Adviser"). For the services provided to the Manager,
the Manager pays the Sub-Adviser a monthly fee equal to 40% of the fee paid
to the Manager under the terms of the Investment Management Agreement. The
Fund has also entered into an Administration Agreement with Middlesex
Administrators L.P., the administrator of the Fund, which provides for
payment, subject to an annual minimum fee of $150,000, of a monthly fee
computed at the annual rate of 0.21% of the Fund's average weekly net
assets.
Certain officers, directors and shareholders of DMC are officers and/or
directors of the Fund. Officers, directors and employees of DMC, who are
also officers, directors and/or employees of the Fund, do not receive any
compensation from the Fund.
On May 31, 1995, the Fund had investment management fees payable to DMC of
$52,452. In addition, the Fund had administrative fees payable to Middlesex
Administrators L.P. of $15,736.
On April 3, 1995, Delaware Management Holdings, Inc., the indirect parent of
DMC and DIAL, through a merger transaction (the "Merger") became a
wholly-owned subsidiary of Lincoln National Corporation. Other than the
resulting change in ownership, the Merger will not materially change the
manner in which DMC and DIAL have heretofore conducted their relationship
with the Fund.
An annual meeting of shareholders was held on March 29, 1995. The matters
submitted to a vote of shareholders were the election of directors, the
approval of a new investment management agreement and a new sub-advisory
agreement, and the ratification of the selection of Ernst & Young LLP as
independent auditors of the Fund. The new investment management agreement and
sub-advisory agreement were submitted for shareholder approval in connection
with the Merger noted above because the Investment Company Act of 1940
requires shareholders to vote on new investment management and sub-advisory
agreements whenever there is a change in control of an investment manager.
13
<PAGE>
The names of each director elected at the meeting along with the final vote
tabulation with respect to each nominee and each matter were as follows:
NUMBER OF VOTES
-----------------------------------------
FOR AGAINST/WITHHELD ABSTENTIONS
--- ---------------- -----------
Election of Directors:
Wayne A. Stork 4,966,637 81,204 --
Walter P. Babich 4,967,217 80,624 --
Anthony D. Knerr 4,966,407 81,434 --
Ann R. Leven 4,966,857 80,984 --
W.Thacher Longstreth 4,966,580 81,262 --
Charles E. Peck 4,966,957 80,884 --
Approval of the New Investment
Management Agreement 4,834,631 74,911 138,300
Approval of the New
Sub-Advisory Agreement 4,822,662 74,628 150,552
Selection of Ernst & Young LLP as
Independent Auditors 4,942,385 30,592 84,865
3. INVESTMENTS
Investment securities based on cost for federal income tax purposes at
May 31, 1995, are as follows:
Cost of investments.................................... $90,185,076
Aggregate unrealized appreciation ..................... 3,746,710
Aggregate unrealized depreciation ..................... (3,612,795)
-----------
Market value of investments ........................... $90,318,991
===========
Net realized loss based on cost of specific certificate or bond for federal
income tax purposes was $1,743,553 for the six months ended May 31, 1995.
For federal income tax purposes, the Fund had accumulated net capital losses
at November 30, 1994, of $1,314,888 which may be carried forward and applied
against future capital gains. The capital loss carryforward expires in 2002.
During the six months ended May 31, 1995, the Fund had purchases of
$27,993,120 and sales of $29,992,639 of investment securities, other than
U.S. Government securities and short-term debt securities having maturities
of one year or less.
On May 31, 1995, the Fund had a receivable for investment securities sold of
$368,897 and a payable for investment securities purchased of $2,283,592.
<PAGE>
4. FORWARD FOREIGN EXCHANGE CONTRACTS
The Fund will, from time to time, enter into foreign currency exchange
contracts. There are costs and risks associated with such currency
transactions. No type of foreign currency transaction will eliminate
fluctuations in the prices of the Fund's foreign securities or will prevent
loss if the prices of such securities should decline. Forward foreign
exchange contracts as of May 31, 1995, are as follows:
IN
UNREALIZED EXCHANGE
CONTRACT TO DELIVER SETTLEMENT DATE DEPRECIATION FOR
18,000,000 Swedish Kronas 7/31/95 $(17,253) $2,434,011
5. CONCENTRATION OF CREDIT RISK
The Fund may invest in high-yield fixed income securities which carry ratings
of CCC or lower by S&P and/or Caa or lower by Moody's. Investments in these
higher yielding securities may be accompanied by a greater degree of credit
risk than higher rated securities. Additionally, lower rated securities may
be more susceptible to adverse economic and competitive industry conditions
than investment grade securities.
The Fund may invest in securities whose value is derived from an underlying
pool of mortgages or consumer loans. Prepayment of these loans may shorten
the stated maturity of the respective obligation and may result in a loss of
premium, if any has been paid.
The Fund may invest up to 10% of its total assets in illiquid securities
which include securities with contractual restrictions on resale, securities
exempt from registration under Rule 144A of the Securities Act of 1933, as
amended, and other securities which may not be readily marketable. The
relative illiquidity of some of these securities may adversely affect the
Fund's ability to dispose of such securities in a timely manner and at a fair
price when it is necessary to liquidate such securities. These securities
have been denoted in the Statement of Net Assets.
14
<PAGE>
6. GEOGRAPHIC DISCLOSURE
As of May 31, 1995, the Fund's geographic diversification was as follows:
PERCENTAGE OF
TOTAL SECURITIES
COUNTRY* AT VALUE
United States............. 63.15%
United Kingdom............ 7.35%
Australia................. 6.42%
Greece.................... 5.25%
South Africa.............. 4.18%
Spain..................... 3.56%
Sweden.................... 2.62%
Canada.................... 2.60%
France.................... 1.62%
New Zealand............... 0.84%
Hong Kong................. 0.81%
Belgium................... 0.73%
Netherlands............... 0.50%
Finland................... 0.23%
Indonesia................. 0.14%
------
Total..................... 100.00%
======
Like any investment in securities, the value of the portfolio may be subject
to risk or loss from market, currency, economic and political factors which
occur in the countries where the Fund is invested.
* Based on the country of the currency in which each security is denominated.
7. CAPITAL STOCK
There are 500,000,000 shares of $0.01 par value capital stock authorized.
The Fund sold 6,700,000 shares in its initial public offering.
Under the Share Repurchase Program, the Fund repurchased 56,800 shares at a
weighted average discount of 4.29% per share during the six months ended
May 31, 1995.
On June 2, 1995, the Fund declared its monthly dividend in the amount of
$0.093 per share. This dividend is payable June 30, 1995, to stockholders of
record at the close of business on June 16, 1995. The ex-dividend date was
June 14, 1995.
Shares issuable under the Fund's dividend reinvestment plan are purchased by
the Fund's transfer agent, IFTC in the open market.
<PAGE>
8. FINANCIAL HIGHLIGHTS
Selected data for each share outstanding throughout the period were as
follows:
SIX MONTHS ENDED FOR THE PERIOD
MAY 31, 1995 MARCH 4, 1994*
(UNAUDITED) TO NOVEMBER 30, 1994
Net asset value, beginning of period ...... $ 13.09 $ 14.00+
-------- --------
Income from investment operations:
Net investment income.................... 0.59 0.84
Net realized and unrealized gain/(loss)
on securities........................... 0.64 (1.05)
-------- --------
Net increase (decrease) in net assets
from investment operations ............. 1.23 (0.21)
-------- --------
Less distributions:
Dividends from net investment income .... (0.71) (0.70)
-------- --------
Total distributions...................... (0.71) (0.70)
-------- --------
Net asset value, end of period ............ $ 13.61 $ 13.09
======== ========
Market value, end of period ............... $ 13.00 $ 11.75
======== ========
Total investment return based on: (1)
Market value............................. 17.15% (17.15%)
======== ========
Net asset value.......................... 10.10% (1.11%)
======== ========
Ratios/Supplemental Data:
Net assets, end of period (000's
omitted) ............................... $90,530 $87,780
======== ========
Ratio of expenses to average
net assets.............................. 1.22%** 1.32%**
Ratio of net investment income
to average net assets................... 8.73%** 8.54%**
Portfolio turnover......................... 33% 86%
* Commencement of operations.
** Annualized.
+ Net of offering costs of $0.10 charged to paid-in capital with respect to
issuance of common shares.
(1) Total investment return is calculated assuming a purchase of common stock
on the opening of the first day and a sale on the closing of the last day of
each period reported. Dividends and distributions, if any, are assumed for
the purposes of this calculation, to be reinvested at prices obtained under
the Fund's dividend reinvestment plan. Generally, total investment return
based on net asset value will be higher than total investment return based on
market value in periods where there is an increase in the discount or a
decrease in the premium of the market value to the net asset value from the
beginning to the end of such periods. Conversely, total investment return
based on net asset value will be lower than total investment return based on
market value in periods where there is a decrease in the discount or an
increase in the premium of the market value to the net asset value from the
beginning to the end of such periods. The total investment returns based on
market value and net asset value have not been annualized.
15
<PAGE>
9. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>
NET REALIZED AND NET INCREASE
UNREALIZED GAIN(LOSS) (DECREASE) IN
INVESTMENT NET INVESTMENT ON INVESTMENTS AND NET ASSETS RESULTING MARKET PRICE
QUARTER ENDED INCOME INCOME FOREIGN CURRENCIES FROM OPERATIONS ON NYSE+
- ------------ ----------------- ---------------- -------------------- --------------------- ---------------
TOTAL PER TOTAL PER TOTAL PER TOTAL PER
(000) SHARE (000) SHARE (000) SHARE (000) SHARE HIGH LOW
------- ----- ------ ----- ------- ------ ------- ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
May 31, 1994 *..... $2,078 $0.31 $1,794 $0.27 ($3,661) ($0.54) ($1,867) ($0.27) $15.13 $11.88
August 31, 1994 .. 2,231 0.33 1,930 0.29 491 0.07 2,421 0.36 13.13 12.13
November 30, 1994 . 2,245 0.34 1,904 0.28 (3,874) (0.58) (1,970) (0.30) 12.88 11.63
------- ----- ------ ----- ------- ------ ------- ------
$6,554 $0.98 $5,628 $0.84 ($7,044) ($1.05) ($1,416) ($0.21)
======= ===== ====== ===== ====== ===== ======= ======
February 28, 1995 . $2,146 $0.32 $1,837 $0.27 $1,362 $0.20 $3,199 $0.47 $12.50 $11.50
May 31, 1995....... 2,245 0.34 1,980 0.30 3,052 0.46 5,032 0.76 13.00 12.25
------- ----- ------ ----- ------- ------ ------- ------
$4,391 $0.66 $3,817 $0.57 $4,414 $0.66 $8,231 $1.23
======= ===== ====== ===== ====== ===== ======= ======
</TABLE>
- -------------
* The Fund commenced operations on March 4, 1994.
+ As reported on the New York Stock Exchange
16
<PAGE>
Board of Directors
WAYNE A. STORK*
Chairman
Delaware Group of Funds
Dividend and Income Fund
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
Deputy Treasurer
National Gallery of Art
Washington, DC
W. THACHER LONGSTRETH
Vice Chairman
Packquisition Corp.
Philadelphia, PA
CHARLES E. PECK
Secretary,
Enterprise Homes, Inc.
Columbia, MD
Audit Committee
WALTER P. BABICH
ANN R. LEVEN
ANTHONY D. KNERR
Executive Officers
BRIAN F. WRUBLE
President and CEO
WINTHROP S. JESSUP
Executive Vice President
DAVID K. DOWNES
Senior Vice President/Chief Administrative
Officer/Chief Financial Officer
GEORGE M. CHAMBERLAIN, JR.
Senior Vice President/Secretary
*Officer and Director
<PAGE>
Delaware Group of Funds
FOR GROWTH OF CAPITAL
Trend Fund
DelCap Fund
Value Fund
FOR TOTAL RETURN
Dividend Growth Fund
Decatur Total Return Fund
Decatur Income Fund
Delaware Fund
FOR GLOBAL
DIVERSIFICATION
International Equity Fund
Global Assets Fund
Global Bond Fund
FOR CURRENT INCOME
Delchester Fund
U.S. Government Fund
Treasury Reserves
Intermediate Fund
FOR TAX-FREE
CURRENT INCOME
Tax-Free USA Fund
Tax-Free Insured Fund
Tax-Free USA
Intermediate Fund
Tax-Free Pennsylvania Fund
MONEY MARKET FUNDS
Delaware Cash Reserve
U.S. Government Money Fund
Tax-Free Money Fund
CLOSED-END EQUITY/INCOME
Dividend and Income Fund
Global Dividend and
Income Fund
<PAGE>
The Delaware Group includes funds with a wide
range of investment objectives. Stock funds,
income funds, tax-free funds, money market funds,
closed-end equity/income funds and global funds
give investors the ability to create a portfolio that
fits their personal financial goals. For more
information, including a prospectus of any
Delaware Group fund, contact your financial
adviser or call the Delaware Group at
800-523-4640 or 215-988-1333 in Philadelphia.
Read the Prospectus carefully before investing.
BE SURE TO CONSULT YOUR FINANCIAL ADVISER
WHEN MAKING INVESTMENTS. FUNDS CAN BE A
VALUABLE PART OF YOUR FINANCIAL PLAN; HOWEVER,
SHARES OF THE FUND ARE NOT FDIC OR NCUSIF INSURED,
ARE NOT GUARANTEED BY ANY BANK OR ANY CREDIT UNION,
ARE NOT OBLIGATIONS OF ANY BANK OR ANY CREDIT UNION,
AND INVOLVE INVESTMENT RISK, INCLUDING THE POSSIBLE
LOSS OF PRINCIPAL. SHARES OF THE FUND ARE NOT
BANK OR CREDIT UNION DEPOSITS.
PRINCIPAL OFFICE OF THE FUND
1818 Market Street
Philadelphia, PA 19103
INVESTMENT MANAGER
Delaware Management Company, Inc.
Philadelphia
SUB-ADVISER
Delaware International Advisers Ltd.
London
INDEPENDENT AUDITORS
Ernst & Young LLP
2001 Market Street
Philadelphia, PA 19103
REGISTRAR AND STOCK TRANSFER AGENT
Investors Fiduciary Trust Company
210 West 10th Street
Kansas City, MO 64105
800-596-8396
NUMBER OF RECORDHOLDERS
AS OF MAY 31, 1995
392
GDIF-02[5/95]PP795
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DELAWARE GROUP
A TRADITION OF SOUND INVESTING SINCE 1929
PHOTO OF
COLONIAL OBJECTS
|
1995 |
|
SEMI- |
|
ANNUAL |
|
REPORT | DELAWARE
| GROUP
| ========
| Global Dividend and
| Income Fund
|
|
