<PAGE>
The Fund's
- --------------------
Investment
- --------------------
Objectives and
- --------------------
Strategies
- --------------------
Delaware Group Global Dividend and Income Fund's primary objective is to provide
a high level of current income with a secondary goal of capital appreciation. To
achieve this, the Fund diversifies assets among several asset classes -- U.S.
stocks and high-yield bonds as well as foreign stocks and bonds. The
concentration in each asset class depends on the manager's assessment of the
relative risks and rewards of a particular market.
U.S. AND FOREIGN COMMON STOCKS
WITH HIGHER-THAN-AVERAGE YIELDS
Yield is the relationship between a stock's dividend and its price.
High-yield stocks pay high income relative to their share price, which helps the
Fund meet its primary investment objective.
A high yield can also point the Fund to strong companies selling for
less than they may be worth. Generally, when a stock's yield is high, its price
has fallen. A strong company's stock may have a high yield relative to the
average stock yield in its market because of a temporary negative outlook for an
industry or the company. If the outlook for the company or its industry changes
or if the yield attracts income investors -- particularly during periods of low
interest rates -- capital appreciation may result. Finally, a high yield can
help cushion a portfolio's total return during periods of price declines.
In evaluating foreign stocks, the Fund's management takes into account
risks that include a country's inflation outlook, economy, politics, different
accounting standards, tax policies and the effect of currency fluctuations. The
value of the company's projected dividend stream is "discounted" for these risks
so that management has a consistent yardstick to compare stocks around the
globe.
CONVERTIBLE STOCKS AND BONDS
The Fund invests in both convertible preferred stock and convertible
bonds. Both pay fixed rates of income, but because they can be converted into a
certain number of shares of common (or sometimes preferred) stock, they are
indirectly tied to the common stock's performance. As a result, convertible
securities generally offer higher income than common stocks and an opportunity
for price appreciation when the value of the underlying security rises. We often
buy convertibles when the underlying common stock offers strong growth
potential, but only a relatively low yield.
U.S. HIGH-YIELD CORPORATE BONDS
High-yield bonds are non-investment grade bonds issued by companies
across the broad spectrum of corporate America. Because these bonds have greater
credit risk than higher rated bonds, they tend to pay income at higher rates,
making them attractive to income-oriented investors.
FOREIGN BONDS
Your Fund invests in foreign government and corporate bonds whose
income potential relative to currency, political and economic risk, appears
attractive. In order to reduce currency risk, the Fund may buy foreign bonds
denominated in U.S. dollars rather than the currency of the country issuing the
bonds.
The Fund invests in bonds issued by countries with established
securities markets such as those of Europe and developed Pacific Basin markets
such as Australia. The Fund also owns bonds in emerging markets where management
believes the income and capital appreciation potential justifies the risks.
<PAGE>
December 29, 1995
Dear
- --------------------
Shareholder:
- --------------------
For selected stock and bond markets around the world, the 12 months ended
November 30, 1995, was a period of exceptional performance. In the U.S., subdued
inflation, higher-than-expected corporate earnings and sharply reduced interest
rates paved the way for the strongest year for stocks and bonds in nearly two
decades.
Favorable interest rate and inflation environments prevailed in most
of the developed world during the past year, and bond markets in Western Europe,
Canada and Australia generally provided strong double digit returns. However,
few of the world's major stock markets kept pace with soaring U.S.
equity prices.
- -------------------------------------------------------------------------------
TOTAL RETURN
DECEMBER 1, 1994 - NOVEMBER 30, 1995
Performance Performance
Based on Based On
Net Asset Value Market Price
--------------- ------------
Global Dividend and Income Fund +19.08% +29.74%
(NYSE Symbol: DGF)
Standard & Poor's 500 Index +36.91%
Morgan Stanley Europe Australia
and South East Asia (EASEA) Index +13.80%
Lipper Closed-End Income
Fund Average +27.16%
The Fund's total return assumes reinvestment of monthly dividends. The Morgan
Stanley Index shown above is an index of foreign stocks that does not include
Japanese stocks. Total return is measured in U.S. dollars. There are 11
closed-end funds in the Lipper Closed-End Income Fund Average, most of which
are domestic-oriented funds.
- -------------------------------------------------------------------------------
Though designed to provide high current income, your Fund benefited
from the 1995 appreciation of stocks and bonds around the world. As you can see
from the chart above, the Fund's net asset value return over the fiscal year was
+19.08% (with dividends reinvested). The Fund achieved more than half of the
total return of the unmanaged Standard & Poor's 500 Index even though only
one-third of the Fund's portfolio was common stocks.
Your Fund significantly outperformed the unmanaged Morgan Stanley EASEA
Index because of its more than 50% positioning in U.S. common stocks, high-yield
bonds and convertible securities. The Fund also benefited from having only
modest portfolio exposure to volatile emerging markets and no exposure to Japan,
whose stock and bond markets performed poorly during much of 1995.
As you can see below, the Fund's market performance was even greater
than the Fund's growth in net asset value. The Fund's shares began the fiscal
year at a 10.2% discount to net asset value and ended at a modest discount of
2.2%, attributable, in part we believe, to the managed distribution policy which
the Fund's Board of Directors adopted on July 20, 1995. Please see page 5 for a
full description of this new program.
In connection with the managed distribution policy, the Fund's monthly
dividend rate was increased from $0.1042 to $0.125 per share, effective with the
December 1995 dividend payment. This new monthly dividend rate represents a
total increase of 42% and was the third dividend increase announced in the past
fiscal year.
On the pages that follow, we provide an in-depth review of worldwide
market conditions and the Fund's portfolio positioning. Overall, we believe that
while U.S. economy may slow further in the coming months, global opportunities
abound. It is our opinion that many markets may favor the "value"-oriented,
dividend-paying companies the Fund emphasizes and that interest rates in places
such as Europe may continue to fall, allowing bond prices to move higher.
Thank you for your confidence in the Delaware Group and our best wishes
for the coming year.
Sincerely,
/s/ Wayne A. Stork
- ------------------
Wayne A. Stork
Chairman
<PAGE>
Portfolio
- --------------------
Managers'
- --------------------
Review
- --------------------
OUR LARGEST STOCK FOCUS:
BANKS, UTILITIES AND REITS
It was a great year for the U.S. stock market, with the Standard & Poor's 500
Index rising 36.91% to a new record high by the end of November. The American
market's performance was generally better than most other major world markets in
1995.
In the U.S., the Fund bought common stocks in the financial services
sector because early in the fiscal year we saw value in terms of price, yield,
underlying fundamental strengths and possible merger activity. In fact, three
banking stocks we held as of November 30 were involved in mergers in the
northeast U.S. -- CoreStates Financial Corp., Fleet Financial Group. and UJB
Financial Corp. CoreStates was our largest bank stock holding.
Two high-yielding sectors where we had large holdings of both foreign
and domestic common stocks were electric utilities and telephone companies.
Investors often turn to utilities for income, and these stocks benefited over
the course of the year as falling interest rates reduced the yields
available from most areas of the bond market. We had holdings of utilities in
Europe and the southwest U.S. The Fund's single largest stock holding in
utilities was Texas Utilities.
- ---------------------------------------------
Asset Allocation
PERCENT OF NET ASSETS AS OF NOVEMBER 30, 1995
Non-Convertible Bonds 45.08%
Cash and Other Assets 3.38%
Convertible Preferred Stocks 8.72%
Common Stocks 33.59%
Convertible Bonds 9.23%
- ---------------------------------------------
An area of the stock market that did not perform as well as the
majority of stocks was Real Estate Investment Trusts (REITs), the largest
component of the Fund's common stock portfolio. We invest in REITs primarily for
income, and for that purpose they served the Fund well.
REITs can own mortgages, income-producing real estate, or both. As of
November 30, 1995, the Fund focused exclusively on those REITs that owned
income-producing property, a strategy we believe helps reduce the Fund's
exposure to interest rate risks. REITs are also affected by the risks of owning
commercial real estate -- such as changes in office and apartment rental demand,
the creditworthiness of tenants and property taxes.
In 1995, REITs did not keep pace with the more growth-oriented areas of
the stock market. However, we believe these stocks can perform better in the
coming months as low interest rates bolster housing and commercial construction
demand.
<PAGE>
A STRONG YEAR FOR HIGH-YIELD BONDS
High-yield corporate bonds were one of the best performing sectors in
the bond market during the 12 months ended November 30. They benefited from
increased demand for high income amid the past year's interest rate declines.
Economic growth, though it was slower, remained steady, and earnings at many of
the companies that issue high-yield bonds remained strong, bolstering bond
prices.
Your Fund balanced opportunities for high current income with a
relatively conservative approach to potential credit risk. During the year, the
high-yield portion of the portfolio consisted primarily of bonds rated BB and B,
the highest non-investment grade ratings. We reduced average maturity and
average duration, or price sensitivity to changes in interest rates. After the
past year's extremely strong bond market, we believed the appreciation potential
to be gained from extending maturities was limited.
High-yield bond sectors that provided good returns for the Fund in 1995
included cable, media, publishing, leisure and lodging businesses as well as
chemical, paper and forest products companies, which we acquired at depressed
prices in 1994.
CONVERTIBLES PROVIDED INCOME AND GROWTH
In 1995, convertible securities provided regular dividend income and
generally allowed us to participate in the capital appreciation of
"growth"-oriented stocks.
Declining interest rates and rising common stock prices helped provide
a +23.52% total return for convertibles, as measured by the Merrill Lynch
Convertible Index. An example of the type of convertible bond we generally buy
is a bond issued by Career Horizons Inc., a Woodbury, N.Y.-based temporary help
business with a market capitalization of about $200 million. The company's
common shares, which do not pay a dividend and thus did not fall within our
income guidelines, more than doubled in value in the past year. The bond, issued
at an interest rate of 7%, allowed us to benefit from the underlying stock's
appreciation while providing above-average income.
Convertibles were somewhat less attractive in terms of price at the end
of the fiscal year compared to a year earlier. During 1995, we slightly reduced
our holdings as some of these stocks and bonds reached our price targets.
- -------------------------------------------------------------------------------
Geographic Diversification
PERCENT OF NET ASSETS AS OF NOVEMBER 30, 1995
Pacific Basin 8.3%
Canada 2.7%
Europe 21.8%
South Africa 4.6%
USA* 62.6%
*NOTE: USA includes foreign bonds in Europe and Latin America denominated in
U.S. dollars.
- -------------------------------------------------------------------------------
<PAGE>
A SLIGHTLY HIGHER FOCUS ON FOREIGN BONDS
We focused on bonds issued by foreign governments and financial
institutions that provided a high level of income. These bonds and the income
they provided were generally denominated in Western European currencies and U.S.
dollars. They included bonds issued in European countries such as Sweden, Spain,
Hungary, Greece, Austria and Poland. At the start of the fiscal year, our
largest holding was Swedish government bonds. These performed very well, and we
sold them after they appreciated.
The Fund's holdings as of November 30 also included a limited amount of
European and Latin American bonds such as Mexican and Argentine government bonds
denominated in U.S. dollars. These so-called Brady Bonds were acquired at a
substantial discount to their face value. We believe that as the economies of
these countries improve, these bonds will offer both income and capital
appreciation potential without the currency risk normally associated with
investments in Latin America.
By year's end, the Fund's holdings of foreign government bonds had
increased to 13.9% of net assets from 10% as of November 30, 1994. We believe
interest rates may decline in the coming months. Our expectation is that central
banks of foreign governments will follow the recent lead of the Federal Reserve
Board and cut short-term interest rates.
INVESTMENT OUTLOOK
In common stocks, we expect our focus to be on sectors where we believe
there is still a measure of value -- a feature that should attract investors at
this time of relatively high stock prices. We believe the financial sector
continues to offer opportunities both in terms of income and appreciation
potential. Utilities and REITs should continue to help the Fund provide high
current income, in our opinion.
One strategy we have begun to implement and which we may make greater
use of in the coming months is writing covered call options on U.S. stocks.
(Writing a covered call indicates that the Fund is selling a call option on a
stock it owns.)
We believe this strategy can be a mechanism to help the Fund minimize
the effect of market declines. It also allows the Fund to hold stocks that we
believe have promising long-term potential but somewhat limited short-term
prospects.
We may reduce our holdings in convertible securities over the coming
year. Because these securities appreciated so much last year, we believe they
may offer only limited future appreciation potential. One area where convertible
securities remain attractive, however, is in industry groups such as business
services whose growth rate is faster than the economy as a whole.
In high-yield bonds, we remain somewhat conservative. We are focusing
on the higher rated issues among non-investment grade bonds, which again is an
effort to counter any potential negative effects a slow-growth economy could
have on corporate profits and therefore a company's ability to pay interest and
repay principal.
/s/ Clive Gillmore
- ------------------------
Clive Gillmore
Senior Portfolio Manager
Foreign Stocks
/s/ Ian G. Sims
- ------------------------
Ian G. Sims
Senior Portfolio Manager
Foreign Fixed-Income
/s/ Bernard P. Schaffer
- ------------------------
Bernard P. Schaffer
Senior Portfolio Manager
U.S. Equities
/s/ Paul A. Matlack
- ------------------------
Paul A. Matlack
Senior Portfolio Manager
U.S. Fixed-Income
<PAGE>
Fund
- --------------------
Updates
- --------------------
MANAGED DISTRIBUTION POLICY
On July 20, 1995, Global Dividend and Income Fund's Board of Directors
adopted a managed distribution policy. The policy's purpose is to make the Fund
more attractive to income-oriented investors, thereby, we believe, encouraging
share purchases which should help the Fund's market price more accurately
reflect the value of its holdings.
Under the new policy, the Fund will now be managed with a goal of
generating as much of the dividend as possible from ordinary income. However,
the balance of the dividend will come from short-term capital gains and, if
necessary, a return of capital. The final calendar year dividend payment may
include a distribution from net long-term capital gains. For tax purposes, a
final audited figure showing the sources of all distributions will be provided
on your 1099-DIV statement at the end of each year.
LEVERAGING PROGRAM AUTHORIZED
On November 16, 1995, the Fund's Board of Directors authorized a
program to leverage the Fund's common stock through a bank loan of $25 million.
This borrowed money will be invested with the objective of increasing the Fund's
net investment income. We hope to implement the leveraging program in the first
quarter of 1996.
Leverage is a tool that is not available to open-end funds and one that
can be an important contributor to the Fund's income potential. As interest
rates have declined, the difference between what the Fund will pay to borrow
money, an amount tied to short-term interest rates, and the amount we can expect
to receive from our investments can be attractive. The use of leverage may
enhance your Fund's potential to earn income.
However, as with any investment, increased return potential can add to
potential risk. Leveraging could result in a higher degree of volatility because
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 of
higher income.
- -------------------------------------------------------------------------------
Global Dividend & Income Fund
Monthly Dividend History
(Dividends Paid Per Share)
5/94 - 12/94 $0.088
1/95 - 7/95 $0.093
8/95 - 11/95 $0.104
12/95 $0.125
- -------------------------------------------------------------------------------
<PAGE>
DELAWARE MERGES WITH LINCOLN NATIONAL CORP.
As was noted in the semi-annual report, the merger between Delaware
Management Holdings, Inc., the parent company of your Fund's investment manager,
and a newly created, wholly owned subsidiary of Lincoln National Corp. was
completed on April 3, 1995. Delaware Management Holdings, Inc. is now a wholly
owned subsidiary of Lincoln National Corp., a diversified financial services
company headquartered in Fort Wayne, Indiana. This merger provides Delaware 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.
STOCK REPURCHASE PROGRAM IMPLEMENTED
The Global Dividend and Income Fund Board of Directors has in place an
open market Share Repurchase Program that authorizes the Fund's manager to
purchase up to 10% of the outstanding shares on the floor of the New York Stock
Exchange. Your Fund's manager bought back 56,800 shares under this program --
nearly 1% of the Fund's outstanding shares -- during the first six months of the
1995 fiscal year, when the Fund's shares traded at a significant discount to net
asset value. In the past six months, as the discount narrowed, repurchasing
opportunities were not as attractive. The program, however, remains in effect
and we may continue to use it from time to time as circumstances warrant.
Over the long term, we believe that this program could add to
shareholder value in two ways, though there is no guarantee that these results
will be met. First, the simultaneous increase in demand and decrease in supply
of outstanding shares could have a positive impact on the Fund's stock price.
Second, since the share purchases are likely to be made a time when they are
trading for less than the underlying value of the assets, the result could be a
higher net asset value per share.
A REPORT ON GLOBAL DIVIDEND AND INCOME FUND'S ANNUAL MEETING
At an annual meeting of shareholders held on March 29, 1995, the
following matters were submitted for shareholder vote: the election of
directors, the ratification of the selection of Ernst & Young LLP as independent
auditors of the Fund and the approval of a new investment management agreement
and a new sub-advisory agreement. The new investment management agreement and
the new sub-advisory agreement were proposed in connection with the April 3,
1995, merger of Delaware Management Holdings, Inc. (the parent of Delaware
Management Company, Inc. and Delaware International Advisors Ltd.) and a
subsidiary of Lincoln National Corporation. Whenever there is a change in
control of an investment manager, the Investment Company Act of 1940 requires
shareholders to vote on a new investment management agreement.
Below are the names of each director elected at the meeting as well as the
results of the other matters voted on by shareholders.
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. Thatcher 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
* Please note that the results of this meeting were not audited by Ernst &
Young LLP.
<PAGE>
Automatic
- --------------------
Reinvestment
- --------------------
Provides Greater
- --------------------
Potential for
- --------------------
Dividend Growth
- --------------------
If you don't plan to use your dividend income from Global Dividend and
Income Fund for current expenses, we recommend that you consider reinvesting
your dividends from the Fund automatically. This increases your total number of
shares, which in turn earn any subsequent dividends, compounding your income
potential. Though dividend reinvestment does not guarantee a profit, it can add
to your growth potential, as you can see from the hypothetical illustration on
this page.
If you would like to reinvest your dividends and your shares are
registered in your name, please call Investors Fiduciary Trust Co. at
1-800-596-8396 and tell the Customer Service Representative your decision. You
will be asked to put your request in writing. If you have shares registered in
"street" name, contact your bank, broker or other nominee who holds the shares
to see if you are able to participate in a dividend reinvestment plan. (Shares
of Global Dividend and Income Fund are listed on the New York Stock Exchange
under the symbol DGF.)
- -------------------------------------------------------------------------------
A Strategy to Increase Your Future Income:
Reinvestment of Dividends and Capital Gain Distributions
Annual Dividend with Annual Dividend with
Dividends and Capital Dividends and Capital
Gains in Cash Gains Reinvested
--------------------- ---------------------
Year 1 $1,000 $1,000
Year 2 $1,000 $1,100
Year 3 $1,000 $1,210
Year 4 $1,000 $1,331
Year 5 $1,000 $1,464
Year 6 $1,000 $1,611
Year 7 $1,000 $1,772
Year 8 $1,000 $1,949
Year 9 $1,000 $2,144
Year 10 $1,000 $2,358
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. The
illustration assumes there is no additional return on distributions taken in
cash.
- -------------------------------------------------------------------------------
<PAGE>
Financial
Statements
DELAWARE GROUP
GLOBAL DIVIDEND AND INCOME FUND, INC.
STATEMENT OF NET ASSETS
NOVEMBER 30, 1995
Number Market
of Shares Value
COMMON STOCK - 33.59%
Automobiles - 0.92%
GKN plc ......................................... 51,000 $ 628,716
Turner & Newell plc ............................. 116,000 231,536
----------
860,252
----------
Banking, Finance & Insurance - 5.47%
Beneficial ...................................... 5,800 294,350
CoreStates Financial ............................ 40,000 1,550,000
Fleet Financial Group ........................... 12,300 513,525
Great Western Financial ......................... 50,000 1,275,000
National Australia Bank ......................... 66,000 576,083
PT Bank Dagang Nasional ......................... 127,750 106,295
UJB Financial ................................... 24,000 804,000
----------
5,119,253
----------
Computers & Technology - 0.29%
B.I.C.C. ........................................ 62,000 269,314
----------
269,314
----------
Energy - 0.87%
Elf Gabon ....................................... 2,200 333,565
Royal Dutch Petroleum ........................... 4,050 481,010
----------
814,575
----------
Food, Beverage & Tobacco - 2.34%
Dalgety plc ..................................... 73,750 438,794
Philip Morris Companies ......................... 10,000 877,500
Southcorp Holdings Ltd. ......................... 170,000 377,914
Unigate ......................................... 77,000 491,107
----------
2,185,315
Healthcare & Pharmaceuticals - 0.86%
Bristol-Myers Squibb ............................ 10,000 802,500
----------
802,500
----------
Leisure & Lodging - 0.61%
Bass plc ........................................ 54,000 569,892
----------
569,892
----------
<PAGE>
Number Market
of Shares Value
COMMON STOCK (Continued)
Metals & Mining - 0.67%
Hartebeestfontein ............................... 49,600 $ 128,497
RTZ Corporation plc ............................. 35,000 502,135
----------
630,632
----------
Real Estate - 11.53%
American Health Properties ...................... 25,000 496,875
Bay Apartment Communities ....................... 45,000 978,750
Evans Withycombe Residential .................... 27,800 528,200
Glimcher Realty Trust ........................... 30,000 525,000
JDN Realty ...................................... 47,000 963,500
Macerich Company (The) ......................... 50,000 987,500
Oasis Residential ............................... 25,000 521,875
Patriot American Hospitality .................... 38,000 902,500
Reckson Associates Realty ....................... 22,000 613,250
ROC Communities ................................. 28,700 642,163
Simon Property Group ............................ 20,000 465,000
Smith (Charles E.) Residential Realty ........... 10,000 230,000
Sovran Self Storage ............................. 25,000 621,875
Starwood Lodging Trust .......................... 30,000 828,750
Storage Trust Realty ............................ 20,800 418,600
Sun Communities ................................. 20,000 500,000
Union Du Credit Bail Immobil .................... 2,700 268,399
Walden Residential Properties ................... 16,000 286,000
----------
10,778,237
----------
Retail - 0.79%
Dickson Concepts ................................ 600,000 434,381
Sime Darby - Hong Kong .......................... 300,000 308,333
----------
742,714
----------
Transportation - 0.49%
Brambles Industries ............................. 42,000 459,028
----------
459,028
----------
Utilities - 6.96%
British Columbia Telecom ........................ 22,000 386,812
British Gas plc ................................. 91,000 338,914
Electrabel NPV .................................. 3,150 718,271
GTE ............................................. 15,700 669,213
Iberdrola ....................................... 56,000 473,400
North West Water plc ............................ 53,000 483,949
Oklahoma Gas & Electric ......................... 12,000 486,000
Royal PTT Nederland NV ADR ...................... 17,900 633,213
Telecom Corp. of New Zealand .................... 139,000 581,759
Telefonica de Espana ............................ 42,000 580,370
Texas Utilities ................................. 30,000 1,155,000
----------
6,506,901
----------
Miscellaneous - 1.79%
Ceramco Corporation Ltd. ........................ 116,000 150,724
Cie De Navigation Mixte ......................... 1,950 293,702
<PAGE>
Number Market
of Shares Value
COMMON STOCK (Continued)
Miscellaneous (Continued)
Eridania Beghin-Say ............................. 2,550 $ 416,334
Jardine Matheson Holdings Ltd.................... 64,800 392,040
Pacific Dunlop Ltd. ............................. 175,000 418,952
----------
1,671,752
----------
Total Common Stock
(cost $31,926,973) ............................. 31,410,365
----------
CONVERTIBLE PREFERRED STOCK - 8.72%
Banking, Finance & Insurance - 1.57%
Advanta 6.75% pfd cv ............................ 16,500 635,250
California Federal Bank 7.75% pfd cv "A" ........ 33,800 828,100
----------
1,463,350
----------
Buildings & Materials - 0.41%
Blue Circle Industries 7.625% pfd cv ............ 150,000 384,287
----------
384,287
----------
Chemicals - 0.79%
ARCO 9.01% "Lyondell" Notes "DECS" .............. 29,700 742,500
----------
742,500
----------
Electronics - 0.71%
+Westinghouse Electric $1.30 pfd cv "C" ......... 40,000 660,000
----------
660,000
----------
Food, Beverage & Tobacco - 1.26%
RJR Nabisco Holdings $0.60 pfd cv
"C" "PERCS" .................................. 200,000 1,175,000
----------
1,175,000
----------
Metals & Mining - 0.54%
MascoTech $1.20 pfd cv "DECS" .................. 40,000 505,000
----------
505,000
----------
Paper & Forest Products - 2.45%
+International Paper 5.25% pfd cv ............... 34,000 1,547,000
James River Corp 9.00% pfd cv
"P" "DECS" ................................... 25,000 750,000
----------
2,297,000
----------
Real Estate - 0.99%
Prime Retail 8.50% pfd cv "B" .................. 50,000 928,125
----------
928,125
----------
Total Convertible Preferred Stock
(cost $8,689,257) ............................ 8,155,262
----------
Principal
Amount
NON-CONVERTIBLE BONDS - 45.08%
Aerospace & Defense - 0.73%
American General sr notes
12.875% 2002 ..............................US$ 400,000 399,000
K & F Industries sr sub deb
13.75% 2001 .................................US$ 270,000 282,150
----------
681,150
----------
<PAGE>
Principal Market
Amount Value
NON-CONVERTIBLE BONDS (Continued)
Automobiles & Auto Equipment - 0.46%
Exide sr notes 10.75% 2002 .................US$ 400,000 $432,000
----------
432,000
----------
Banking, Finance & Insurance - 9.45%
Bank of Austria 10.875% 2004 ...............AUS 1,000,000 832,704
Bank of Greece matador bonds
12.50% 1997 ...............................ESP 80,000,000 668,157
Commonwealth Bank of Australia
unsec unsub 13.75% 1999 ...................AUD 500,000 440,515
Eurofima sr unsec unsub deb
9.875% 2007 ...............................AUD 2,000,000 1,621,729
European Bank for Reconstruction &
Development sr unsub
marathon bonds 15.25% 1998 ................GRD 100,000,000 425,796
European Investment Bank
deb 17.50% 1999 ..........................GRD 50,000,000 222,886
European Investment Bank
marathon bonds 14.00% 2001.................ESP 80,000,000 755,131
International Bank for
Reconstruction & Development sr
unsub 15.50% 1997 ........................GRD 700,000,000 2,951,133
International Finance
marathon bonds 15.25% 1999 ................GRD 150,000,000 637,117
Mutual Group unsec sub deb
7.25% 2004 ...............................GBP 200,000 280,472
----------
8,835,640
----------
Buildings & Materials - 0.64%
American Standard sr notes
10.875% 1999 ..............................US$ 450,000 490,500
Schuller International Group sr notes
10.875% 2004 ..............................US$ 100,000 112,000
----------
602,500
----------
Cable, Media & Publishing - 2.51%
Century Communications sr notes
9.75% 2002 ...............................US$ 600,000 618,000
Cinemark USA sr notes
12.00% 2002 ..............................US$ 400,000 437,000
Infinity Broadcasting sr sub notes
10.375% 2002 .............................US$ 200,000 215,750
Jones Intercable sr notes
9.625% 2002 ..............................US$ 300,000 320,250
Rogers Cablesystems sr sec notes
10.00% 2005 ..............................US$ 300,000 313,500
Rogers Cablesystems sr sec deb
10.00% 2007 ..............................US$ 140,000 144,900
<PAGE>
Principal Market
Amount Value
NON-CONVERTIBLE BONDS (Continued)
Cable, Media & Publishing (Continued)
Rogers Cablesystems sr sec deb
11.00% 2015 ..............................US$ 90,000 $ 93,150
+Sullivan Graphics sr sub notes
12.75% 2005 ..............................US$ 200,000 200,250
----------
2,342,800
----------
Chemicals - 1.86%
Berry Plastics sr sub notes
12.25% 2004 ..............................US$ 600,000 636,000
NL Industries sr sec notes
11.75% 2003 ..............................US$ 265,000 282,225
Polymer Group sr notes
12.25% 2002 ..............................US$ 400,000 414,000
Uniroyal Chemical Acquistion
sr sub notes 11.00% 2003 ..................US$ 400,000 405,000
----------
1,737,225
----------
Computers & Technology - 0.21%
Unisys credit-sensitive notes
13.50% 1997 ..............................US$ 200,000 197,000
----------
197,000
----------
Consumer Products - 0.46%
American Safety Razor sr notes
9.875% 2005 ..............................US$ 200,000 199,000
+Remington Arms sr sub notes
10.00% 2003 ..............................US$ 250,000 234,375
----------
433,375
----------
Electronics - 0.81%
ADT Operations sr sub notes
9.25% 2003 ...............................US$ 250,000 265,938
+Pronet sr sub notes 11.875% 2005 ...........US$ 450,000 487,125
----------
753,063
----------
Energy - 0.23%
Ferrellgas sr sub notes 10.00% 2001 ........US$ 200,000 210,500
----------
210,500
----------
Environmental Services - 0.46%
Allied Waste Industries sr sub notes
12.00% 2004 ..............................US$ 400,000 430,000
----------
430,000
----------
Food, Beverage & Tobacco - 0.30%
Purina Mills sr sub notes
10.25% 2003 ..............................US$ 100,000 103,000
Specialty Foods sr notes
11.125% 2002 .............................US$ 190,000 180,500
----------
283,500
----------
Foreign Government - 13.92%
National Bank of Hungary
deb 10.00% 2002 ..........................GBP 400,000 582,740
<PAGE>
Principal Market
Amount Value
NON-CONVERTIBLE BONDS (Continued)
Foreign Government (Continued)
Poland Global 2.75% 2024 ....................US$ 2,000,000 $ 895,000
Republic of Argentina 5.00% 2023 ............US$ 1,500,000 785,625
Republic of South Africa
12.50% 2002 ...............................ZAL 16,000,000 4,042,923
Republic of Turkey unsec deb
9.00% 2003 ................................GBP 400,000 525,383
Spanish Government 10.50% 2003 ..............ESP 120,000,000 982,239
Spanish Government 11.30% 2002 ..............ESP 320,000,000 2,723,348
Treasury Corp of Victoria
10.50% 2003 ...............................AUD 1,500,000 1,230,934
*United Mexican States
6.25% 2019 ................................US$ 2,000,000 1,247,500
----------
13,015,692
----------
Healthcare & Pharmaceuticals - 0.37%
HEALTHSOUTH Rehabilitation sr sub notes
9.50% 2001 ................................US$ 200,000 213,500
Tenet Healthcare sr sub notes
10.125% 2005 ..............................US$ 120,000 130,800
----------
344,300
----------
Leisure & Lodging - 1.36%
Four Seasons Hotel deb
11.05% 1996 ...............................CAD 800,000 594,202
Scott's Hospitality unsec deb
10.95% 2001 ...............................CAD 800,000 673,837
----------
1,268,039
----------
Metals & Mining - 1.85%
AK Steel sr notes 10.75% 2004 ..............US$ 500,000 553,125
Armco sr notes 11.375% 1999 .................US$ 250,000 259,375
G.S. Technologies sr notes
12.00% 2004 ...............................US$ 400,000 399,000
G.S. Technologies sr notes
12.25% 2005 ...............................US$ 300,000 300,000
Inland Steel unsec notes
12.75% 2002 ...............................US$ 200,000 222,500
----------
1,734,000
----------
Packaging & Containers - 0.60%
Anchor Glass Container 10.25% 2002 ..........US$ 480,000 352,800
Container Corp. of America sr notes
11.25% 2004 ...............................US$ 200,000 208,000
----------
560,800
----------
Paper & Forest Products - 3.05%
Crown Paper sr sub notes
11.00% 2005 ...............................US$ 200,000 189,000
Domtar deb 10.85% 2017 .....................CAD 1,000,000 835,853
Domtar sr notes 11.75% 1999 ................US$ 400,000 445,000
<PAGE>
Principal Market
Amount Value
NON-CONVERTIBLE BONDS (Continued)
Paper & Forest Products (Continued)
Owens-Illinois sr amort deb
11.00% 2003 ............................. US$ 600,000 $ 670,500
Rainy River Forest Products sr sec notes
10.75% 2001 ............................. US$ 300,000 329,250
Repap Wisconsin sr sec notes
9.25% 2002 .............................. US$ 400,000 386,000
-----------
2,855,603
-----------
Retail - 2.15%
ASDA-MFI Group unsec unsub deb
10.875% 2010 ............................ GBP 500,000 872,771
Cort Furniture Rental sr notes
12.00% 2000 ............................. US$ 247,000 264,290
Fleming Companies sr sub notes
10.625% 2001 ............................ US$ 300,000 315,000
Penn Traffic sr notes 10.65% 2004 ......... US$ 200,000 185,750
Ralph's Grocery sr sub notes
13.75% 2005 ............................. US$ 350,000 371,000
-----------
2,008,811
-----------
Transportation - 0.99%
Eletson Holdings 1st pfd mtg notes
9.25% 2003 .............................. US$ 200,000 199,000
Trans Ocean Container sr sub notes
12.25% 2004 .............................. US$ 500,000 521,250
Viking Star Shipping 1st pfd ship mtg notes
9.625% 2003 ............................. US$ 200,000 205,000
-----------
925,250
-----------
Utilities - 0.93%
Comcast Cellular sr notes
0.00% 2000 .............................. US$ 600,000 459,000
Midland Funding II deb
11.75% 2005 ............................. US$ 400,000 414,716
-----------
873,716
-----------
Miscellaneous - 1.74%
+Graphic Controls sr sub notes
12.00% 2005 ............................. US$ 1,000,000 1,021,250
IMO Industries sr sub deb
12.25% 1997 ............................. US$ 187,000 188,400
Lamar Advertising sr sec notes
11.00% 2003 ............................. US$ 400,000 415,000
-----------
1,624,650
-----------
Total Non-Convertible Bonds
(cost $40,526,561) ...................... 42,149,614
-----------
<PAGE>
Principal Market
Amount Value
CONVERTIBLE BONDS - 9.23%
Banking - 1.53%
+Alfa S.A. De C.V. sub notes
8.00% 2000 ......................... US$ 1,500,000 $1,434,375
----------
1,434,375
----------
Computers & Technology - 0.49%
Unisys sub notes 8.25% 2000 .......... US$ 500,000 458,750
----------
458,750
----------
Electronics - 0.30%
VLSI Technology sub notes
8.25% 2005 ......................... US$ 300,000 282,750
----------
282,750
----------
Healthcare - 0.60%
Theratx sub deb 8.00% 2002 ........... US$ 600,000 561,000
----------
561,000
----------
Paper & Forest Products - 0.24%
Repola Ltd sub deb 6.50% 2004 ........ FIM 1,000,000 221,211
----------
221,211
----------
Real Estate - 5.51%
IRT Property sub deb 7.30% 2003 ...... US$ 1,200,000 1,113,000
Liberty Property Trust sub deb
8.00% 2001 ......................... US$ 1,000,000 997,500
LTC Properties sub deb
8.50% 2000 ......................... US$ 500,000 505,625
Malan Realty Investors sub deb
9.50% 2004 ......................... US$ 800,000 646,000
Mid-Atlantic Realty Trust sub deb
7.625% 2003 ........................ US$ 1,000,000 860,000
Sizeler Property Investors sub deb
8.00% 2003 ......................... US$ 1,200,000 1,029,000
----------
5,151,125
----------
Miscellaneous - 0.56%
+Career Horizons 7.00% 2002 ........... US$ 500,000 520,625
----------
520,625
----------
Total Convertible Bonds
(cost $9,276,128) .................. 8,629,836
----------
SHORT-TERM SECURITIES - 0.45%
**U.S. Treasury Bills 5.56%
12/21/1995 .......................... US$ 420,000 418,703
----------
Total Short-Term Securities
(cost $418,703) ..................... 418,703
----------
<PAGE>
Market
Value
TOTAL MARKET VALUE OF SECURITIES
OWNED - 97.07% (cost $90,837,622) ............................ $90,763,780
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES - 2.93% ................................... 2,736,493
-----------
NET ASSETS APPLICABLE TO
6,650,647 SHARES ($0.01 par value)
OUTSTANDING; EQUIVALENT TO
$14.06 PER SHARE - 100.00% ................................... $93,500,273
===========
DECS - Dividend Enhanced Convertible Security
PERCS - Preferred Equity Redemption Cumulative Stock
*There are 2,000,000 rights attached to these bonds which carry no cost or
value to the Fund.
**U.S. Treasury Bills are traded on a discount basis; the interest rates shown
are the discount rates paid at the time of purchase by the Fund.
+Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from registration,
normally to qualified institutional buyers (See Note 5).
US$ - U.S. dollars AUS - Austrian schillings
GBP - British pounds GRD - Greek drachmas
CAD - Canadian dollars ZAL - South African rand
ESP - Spanish pesetas FIM - Finnish markka
AUD - Australian dollars
COMPONENTS OF NET ASSETS AT NOVEMBER 30, 1995:
Common stock, $0.01 par value, 500,000,000 shares
authorized to the Fund ....................................... $ 93,096,054
Accumulated undistributed income (loss):
Net investment income++....................................... 449,104
Net realized gain on investments++............................ 45,906
Net unrealized depreciation of investments
and foreign currencies .................................... (90,791)
------------
Total net assets applicable to 6,650,647
shares of common stock;
equivalent to $14.06 per share ............................... $ 93,500,273
============
++Accumulated net investment income includes net realized gain on foreign
currencies. During the current fiscal year, the Fund reclassified $173,951 of
permanent book and tax basis differences that occurred during the fiscal
period ended November 30, 1994, from accumulated net realized gain on
investments and foreign currencies to accumulated net investment income. Net
realized gains on foreign currencies are distributed as net investment income
in accordance with provisions of the Internal Revenue Code. The prior year
undistributed net investment income noted in the Statements of Changes in Net
Assets, and Notes 8 and 9 have been adjusted to reflect this reclassification.
See accompanying notes
<PAGE>
DELAWARE GROUP
Global Dividend and Income Fund, Inc.
Statement of Operations
For the Year Ended November 30, 1995
INVESTMENT INCOME:
Interest ........................................ $ 6,135,195
Dividends ....................................... 2,547,668 $ 8,682,863
------------
EXPENSES:
Management fees ................................. 631,472
Administrative fees ............................. 189,442
Reports to shareholders ......................... 57,641
Custodian fees .................................. 29,954
Amortization of organization expenses ........... 24,820
Transfer agent fees ............................. 22,000
Directors' fees ................................. 21,873
NYSE fees ....................................... 16,171
Professional fees ............................... 14,196
Taxes, other than taxes on income ............... 11,489
Other ........................................... 531 1,019,589
------------ -----------
NET INVESTMENT INCOME BEFORE
FOREIGN TAXES WITHHELD ........................ 7,663,274
FOREIGN TAXES WITHHELD .......................... (101,037)
------------
NET INVESTMENT INCOME ........................... 7,562,237
------------
NET REALIZED AND UNREALIZED
GAIN ON SECURITIES AND
FOREIGN CURRENCIES:
Net realized gain on:
Security transactions .......................... 1,360,794
Foreign currencies ............................. 583,684
------------
Net realized gain .............................. 1,944,478
Net change in unrealized depreciation on
securities and foreign currencies .............. 5,812,377
------------
NET REALIZED AND UNREALIZED
GAIN ON SECURITIES
AND FOREIGN CURRENCIES ......................... 7,756,855
------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ...................... $ 15,319,092
============
See accompanying notes
DELAWARE GROUP
Global Dividend and Income Fund, Inc.
Statements of Changes in Net Assets
Year For the Period
Ended March 4, 1994* to
November 30, 1995 November 30, 1994
OPERATIONS:
Net investment income ...................... $ 7,562,237 $ 5,628,333
Net realized gain (loss) on securities
and foreign currencies .................... 1,944,478 (1,140,937)
Net change in unrealized appreciation
(depreciation) on securities
and foreign currencies .................... 5,812,377 (5,903,168)
----------- -----------
Net increase (decrease) in net assets
resulting from operations .................. 15,319,092 (1,415,772)
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ...................... (8,777,060) (4,722,041)
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from initial public offering of
shares (net of $656,979 offering costs) ... -- 93,813,021
Cost of shares repurchased ................. (713,795) --
Additional offering costs charged
to paid-in capital ........................ (108,172) --
----------- -----------
Increase (decrease) in net assets derived
from capital share transactions ........... (821,967) 93,813,021
----------- -----------
NET INCREASE IN NET ASSETS ................. 5,720,065 87,675,208
NET ASSETS:
Beginning of period ........................ 87,780,208 105,000
----------- -----------
End of period (including undistributed
net investment income of $449,104
and $1,080,243, respectively .............. $93,500,273 $87,780,208
=========== ===========
- ----------
* Commencement of operations.
See accompanying notes
<PAGE>
DELAWARE GROUP
GLOBAL DIVIDEND AND INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS
NOVEMBER 30, 1995
Delaware Group Global Dividend and Income Fund, Inc. (the "Fund") is
registered as a diversified, closed-end management investment company
under the Investment Company Act of 1940. The Fund is organized as a
Maryland corporation.
1. Significant Accounting Policies
The following accounting policies are in accordance with generally accepted
accounting principles and are consistently followed by the Fund:
Security Valuation - Securities listed or traded on a national 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.
Exchange-traded options are valued at the last reported sale price or, if no
sales are reported, at the mean between the last reported bid and asked prices.
Non-exchange-traded options are valued using a mathematical model. Short-term
instruments having a maturity date of less than 60 days are valued at amortized
cost. Debt securities are valued by an independent 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 and
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.
Federal Income Taxes - The Fund intends to continue to qualify as a regulated
investment company and make the requisite distributions to shareholders.
Accordingly, no provision for federal income taxes is required in the
financial statements.
Other - 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 and distributions 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 an
accrual basis.
A total of $124,000 was incurred in connection with the 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.
Certain fund expenses are paid directly by brokers. The amount of these expenses
is less than 0.01% of the Fund's average weekly net assets.
2. Investment Management Fee and Other Transactions with Affiliates
In accordance with the terms of the Investment Management Agreement, the Fund
pays Delaware Management Company, Inc. (DMC), the Investment Manager of the
Fund, an annual fee equal to 0.70% of the Fund's adjusted average weekly net
assets. At November 30, 1995, the Fund had a liability for Investment Management
fees of $108,939.
The Fund has also entered into a advisory agreement with Delaware International
Advisers Ltd. (DIAL) (the "Sub-Adviser"). For the services provided to DMC, DMC
pays the Sub-Adviser a monthly fee equal to 40% of the fee paid to DMC 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 adjusted average weekly net assets. At
November 30, 1995, the Fund had a liability for administration fees of $32,682.
Officers, directors and employees of DMC, who are also officers, directors and
employees of the Fund, do not receive any compensation from the Fund.
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 relationships with the Fund.
3. Investments
During the year ended November 30, 1995, the Fund made purchases of $88,591,535
and sales of $91,474,840 of investment securities other than U.S. government
securities and temporary cash investments.
At November 30, 1995, net unrealized depreciation for federal income tax
purposes aggregated $73,842 of which $3,682,235 related to unrealized
appreciation of securities and $3,756,077 to unrealized depreciation of
securities.
The realized gain for federal income tax purposes was $45,906 for the year ended
November 30, 1995.
Of the ordinary income distributions paid by the Fund during its taxable year
ended November 30, 1995, 14% qualifies for the dividends received deduction for
corporations. Additionally, there were no long-term capital gain distributions
paid by the Fund during the year.
Transactions in options written for the year ended November 30, 1995, were as
follows:
<PAGE>
Options Terminated
---------------------------------
Number Proceeds from Cost Net
of Premiums Sale of of Realized
Contracts Received Investments Investments Gain
Options outstanding
November 30, 1994 ........ -- $ --
Contracts written ......... 335 18,340
Contracts terminated:
Exercised ................ 335 18,340 $836,802 $801,822 $53,320
--- ------ -------- -------- -------
Total contracts terminated 335 18,340 $836,802 $801,822 $53,320
Contracts outstanding ======== ======== =======
November 30, 1995 ........ -- $ --
--- ------
4. Forward Foreign Currency Contracts
The Fund will, from time to time, enter into forward foreign currency 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. No forward foreign currency contracts were outstanding as of
November 30, 1995.
5. Concentration of Credit Risk
The Fund may invest in high-yield fixed income securities which carry ratings of
BB or lower by S&P and/or Ba or lower by Moody's. Investments in these higher
yielding securities may be accompanied by a greater degree of credit risk than
higher rated securities. Additionally, lower rated securities may be more
susceptible to adverse economic and competitive industry conditions than
investment grade securities.
The Fund may invest in securities whose value is derived from an underlying pool
of mortgages or consumer loans. Prepayment of these loans may shorten the stated
maturity of the respective obligation and may result in a loss of premium, if
any has been paid.
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.
6. Geographic Disclosure
As of November 30, 1995, the Fund's geographic diversification was as follows:
Percentage of
Total Securities
Country* Market Value at Value
- -------- ------------ ----------------
United States $56,810,226 62.59%
United Kingdom 6,600,013 7.27%
Spain 6,182,644 6.81%
Australia 5,957,861 6.56%
Greece 4,236,930 4.67%
South Africa 4,171,418 4.60%
Canada 2,490,703 2.74%
France 1,312,001 1.45%
Hong Kong 742,714 0.82%
New Zealand 732,483 0.81%
Belgium 718,271 0.79%
Netherlands 481,010 0.53%
Finland 221,211 0.24%
Indonesia 106,295 0.12%
----------- -------
Total $90,763,780 100.00%
=========== =======
*Based on the country of the currency in which each security is denominated.
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.
7. Capital Stock
There are 500,000,000 shares of $0.01 par value capital stock authorized.
Under the Share Repurchase Program, the Fund repurchased 56,800 shares at a
weighted average discount rate of 4.29% per share during the year ended November
30, 1995.
On December 1, 1995, the Fund declared its monthly dividend in the amount of
$0.125 per share. This dividend was payable December 29, 1995, to stockholders
of record at the close of business on December 15, 1995. The ex-dividend date
was December 13, 1995.
Shares issuable under the Fund's dividend reinvestment plan are purchased by the
Fund's transfer agent, IFTC, in the open market.
<PAGE>
Notes to Financial Statements (Continued)
8. Financial Highlights
Selected data for each share of the Fund outstanding throughout each period were
as follows:
<TABLE>
<CAPTION>
For the Period
Year Ended March 4, 1994* to
November 30, 1995 November 30, 1994
----------------- -------------------
<S> <C> <C>
Net asset value, beginning of period ............................... $13.09 $ 14.00+
Income from investment operations:
Net investment income ............................................ 1.23 0.86
Net realized and unrealized gain (loss) from security transactions 1.06 (1.07)
-------- --------
Net increase (decrease) in net assets from investment operations . 2.29 (0.21)
-------- --------
Less dividends and distributions:
Dividends from net investment income ............................. (1.32) (0.70)
Distributions from net realized gain on security transactions .... -- --
-------- --------
Total dividends and distributions ................................ (1.32) (0.70)
-------- --------
Net asset value, end of period ..................................... $ 14.06 $ 13.09
======== ========
Market value, end of period ........................................ $ 13.75 $ 11.75
======== ========
Total investment return based on: (1)
Market value ..................................................... 29.74% (17.15)%
======== ========
Net asset value .................................................. 19.08% (1.11)%
======== ========
Ratios and supplemental data:
Net assets, end of period (000 omitted) .......................... $93,500 $87,780
======== ========
Ratio of expenses to average net assets .......................... 1.13% 1.32%**
Ratio of net investment income to average net assets ............. 8.39% 8.54%**
Portfolio turnover ............................................... 101% 86%
</TABLE>
- --------
* 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 return based on
market value and net asset value have not been annualized for the period
ended November 30, 1994.
<PAGE>
Notes to Financial Statements (Continued)
9. Quarterly Results of Operations
(Unaudited)
<TABLE>
<CAPTION>
Net Realized and
Unrealized
Gain(Loss)
on Investments and Net Increase
Net Unrealized (Decrease) in
Investment Net Investment Gain (Loss) on 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> <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 2,078 0.30 (4,048) (0.60) (1,970) (0.30) 12.88 11.63
------ ----- ------ ----- ------- ------ ------- ------
$6,554 $0.98 $5,802 $0.86 $(7,218) $(1.07) $(1,416) $(0.21)
====== ===== ====== ===== ======= ====== ======= ======
February 28, 1995 ........ $2,316 $0.38 $2,007 $0.33 $1,192 $ 0.15 $ 3,199 $ 0.48 $12.50 $11.50
May 31, 1995 ............. 2,223 0.33 1,958 0.29 3,074 0.46 5,032 0.75 13.00 12.25
August 31, 1995 .......... 2,066 0.27 1,788 0.24 2,104 0.35 3,892 0.59 13.25 12.25
November 30, 1995 ........ 2,662 0.41 2,393 0.37 803 0.10 3,196 0.47 13.75 12.75
------ ----- ------ ----- ------- ------ ------- ------
$9,267 $1.39 $8,146 $1.23 $ 7,173 $ 1.06 $15,319 $ 2.29
====== ===== ====== ===== ======= ====== ======= ======
</TABLE>
* The Fund commenced operations on March 4, 1994.
+ As reported on the New York Stock Exchange
- ------------------------------------------------------------------------------
DELAWARE GROUP GLOBAL DIVIDEND AND INCOME FUND, INC.
REPORT OF INDEPENDENT AUDITORS
TO THE SHAREHOLDERS AND BOARD OF DIRECTORS
DELAWARE GROUP GLOBAL DIVIDEND AND
INCOME FUND, INC.
We have audited the accompanying statement of net assets of Delaware Group
Global Dividend and Income Fund, Inc. as of November 30, 1995, and the related
statement of operations for the year then ended and the statements of changes in
net assets and financial highlights for the year ended November 30, 1995, and
for the period March 4, 1994, (commencement of operations) to November 30, 1994.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
November 30, 1995, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and the financial highlights referred
to above present fairly, in all material respects, the financial position of
Delaware Group Global Dividend and Income Fund, Inc. at November 30, 1995, and
the results of its operations for the year then ended and the changes in its net
assets and the financial highlights for the year ended November 30, 1995, and
for the period March 4, 1994, (commencement of operations) to November 30, 1994,
in conformity with generally accepted accounting principles.
ERNST & YOUNG LLP
Philadelphia, Pennsylvania
January 16, 1996
<PAGE>
<TABLE>
<CAPTION>
Board of Executive
- ------------------ --------------------
Directors Officers
- ------------------ --------------------
<S> <C> <C>
MR. WAYNE A. STORK MS. ANN R. LEVEN MR. WAYNE A. STORK
Chairman, President and Deputy Treasurer Chairman, President and
Chief Executive Officer National Gallery of Art Chief Executive Officer
Delaware Group of Funds Washington, DC Delaware Group of Funds
Philadelphia, PA Philadelphia, PA
MR. W. THACHER LONGSTRETH
MR. WALTER P. BABICH Vice Chairman MR. WINTHROP S. JESSUP
Board Chairman Packquisition Corp. Executive Vice President
Citadel Constructors, Inc. Philadelphia, PA
King of Prussia, PA MR. RICHARD G. UNRUH, JR.
MR. CHARLES E. PECK Executive Vice President
MR. ANTHONY D. KNERR Secretary,
Consultant Enterprise Homes, Inc. MR. PAUL E. SUCKOW
Anthony Knerr & Associates Columbia, MD Senior Vice President/Chief
New York, NY Investment Officer, Fixed-Income
MR. DAVID K. DOWNES
Senior Vice President/Chief
Administrative Officer/Chief
Financial Officer
MR. GEORGE M. CHAMBERLAIN, JR.
Senior Vice President/Secretary
Audit MR. JOSEPH H. HASTINGS
- ------------------ Vice President/Corporate Controller
Committee
- ------------------ MR. MICHAEL P. BISHOF
Vice President/Treasurer
MR. WALTER P. BABICH
MS. ANN R. LEVEN
MR. ANTHONY D. KNERR
</TABLE>
<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. 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.
NOTICE IS HEREBY GIVEN IN ACCORDANCE WITH SECTION 23(C) OF THE INVESTMENT ACT OF
1940 THAT THE FUND MAY PURCHASE AT MARKET PRICES FROM TIME TO TIME SHARES OF ITS
COMMON STOCK IN THE OPEN MARKET.
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 NOVEMBER 30, 1995
383
GDIF002[11/95]PP1/96
<PAGE>
====================
GLOBAL
DIVIDEND
AND INCOME
FUND
===================
1995
ANNUAL
REPORT
A Tradition of Sound Investing Since 1929
DGF DELAWARE
Listed GROUP
NYSE =====================
Philadelphia o London
