<PAGE>
DELAWARE GROUP
Global Dividend
and Income Fund
[various photos demonstrating service and guidance,
professional management and goals]
service and guidance
professional management
goals
1997
Annual
Report
DELAWARE
GROUP
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<PAGE>
A TRADITION OF SOUND INVESTING
commitment
Investment Objectives and Strategies
(photo of keyboard)
(photo of family on beach)
Delaware Group Global Dividend and Income Fund's Objective is to provide high
current income, and secondarily, capital appreciation. To achieve this, the
Fund is diversified among different asset classes as described below. Asset
class concentration depends on the manager's assessment of each market's
relative risks and rewards.
U.S. Common Stocks with Above-Average Yields
The Fund's management focuses on stocks that pay high dividends relative to
their share price at the time of purchase. Such high-yield stocks can point
the Fund to strong companies whose stocks have capital appreciation
potential. The dividend income from these stocks has the potential to add to
total return.
Convertible Preferred
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 common
stock, they are indirectly tied to the common stock's performance.
Convertible securities generally offer higher income than common stocks and
an opportunity for price appreciation when the value of the underlying
security rises. The Fund may buy convertibles when the underlying common
stock offers strong growth potential but a low yield.
High-Yield Corporate Bonds
High-yield bonds, those rated BB or lower, have greater default risk than
bonds with higher quality ratings. However, they historically have provided a
greater level of income that has historically compensated investors for the
additional risks. Prices of high-yield bonds may also be less sensitive to
changes in interest rates than higher rated bonds.
Foreign Stocks
In evaluating foreign stocks, the Fund's management takes into account
special risks that include a country's inflation outlook, economy, politics,
different accounting standards, tax policies and 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.
Foreign Bonds
The Fund invests in foreign government and corporate bonds whose total return
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.
Leveraging
Approximately $25 million of your Fund's net assets were leveraged as of Novem
ber 30, 1997. Leveraging is a tool that is not usually used by open-end
mutual funds and one that can be an important contributor to your Fund's
income and capital appreciation potential. Of course, there is no guarantee
that leveraging will be successful. Leveraging could result in a higher
degree of volatility because the Fund's net asset value could be more
sensitive to fluctuations in short-term interest rates and equity prices. We
believe this risk is reasonable given the potential benefits of higher
income.
<PAGE>
December 8, 1997
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Dear Shareholder:
Financial problems in Asia made fiscal 1997 a challenging year for investors.
Global Dividend and Income Fund had the good fortune to be both well
positioned to take advantage of opportunities in U.S. stocks and bonds and
minimally exposed to volatile Pacific Rim markets.
For the 12 months ended November 30, 1997, your Fund had
a total return of +18.98%, based on market price with dividends reinvested.
The Fund outperformed both its peers as well as the unmanaged Merrill Lynch
High-Yield Bond Index, as shown below.
In our opinion, the Fund's strong performance is the result of an
effective asset allocation strategy which emphasized large capitalization
dividend paying stocks in established markets, high-yield corporate bonds and
convertible securities.
During fiscal 1997, the Fund also benefited from prudent use of
leveraging. The Fund's average cost of borrowing was 6.26% as explained on
page 18.
The U.S. stock market suffered two brief corrections in 1997 - one as
a result of the Federal Reserve Board modestly raising short-term interest
rates in the spring, and the other as a result of financial uncertainty in
several Asian countries. Low inflation and the fundamental strength of the
U.S. economy allowed the market to shrug off these temporary setbacks and
forge ahead.
Most Pacific Rim countries did not fare well in 1997. Currency and
banking system troubles began in Thailand and spread like a brush fire to
surrounding countries. Unmanaged equity indexes in Tokyo and Hong Kong
plunged. For the year ended November 30, 1997, the Nikkei Index dropped
20.86% while Hong Kong's Hang Seng Index fell 18.76%.
Europe fared substantially better as governments generally adopted
tighter fiscal controls in order to qualify for the forthcoming European
Monetary Union. The United Kingdom's unmanaged Financial Times-Stock Exchange
Index rose +17.32% for the 12 months ended November 30.
Total Return
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
December 1, 1996 to November 30, 1997
Based On Premium/Discount
Net Asset Value as of November 30, 1997
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Global Dividend and Income Fund (NYSE Symbol: DGF) +17.93% +1.30%
Standard & Poor's 500 Index +28.51%
Merrill Lynch High-Yield Bond Index +12.62%
Morgan Stanley Europe Australia and South East Asia (EASEA) Index +13.16%
Salomon Brothers World Government Bond Index -0.28%
Lipper Closed-End Income Fund Average (11 funds) +15.91% -4.92%
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
The Fund's total return and the returns of unmanaged indexes shown above
assumes reinvestment of dividends and distributions.
Past performance does not guarantee future results. All returns are in U.S.
dollars.
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Opportunity is often found in moments of crises, and we believe that
currency devaluation and recession along the Pacific Rim present a financial
yin and yang for investors in large multinational companies and fixed-income
securities.
On the one hand, some large cap U.S. companies may derive lower
profits from the region, resulting in a more moderate U.S. growth rate in
1998, according to economists at the Federal Reserve. However, these same
analysts also believe that domestic inflation is likely to remain benign
because the cost of imports to the U.S. from Asia is expected to drop.
Continued low inflation would be encouraging news for bond investors, and
higher bond values have historically helped support equity prices.
During the 12 months ended November 30, 1997, the yield on 30-year
U.S. Treasury bonds dropped 32 basis points (0.32%) to 6.04%. This bullish
bond environment, coupled with a growing economy, helped both stocks and
bonds, particularly those of financial firms and real estate investment
trusts (REITs).
On the pages that follow, the Fund's U.S. portfolio managers - Babak
Zenouzi and Paul A. Matlack, based in Philadelphia, along with their
international counterparts - Clive A. Gillmore and Ian G. Sims, based in
London, review fiscal 1997's performance and provide the outlook for 1998.
In our opinion, successful global investing requires a keen
understanding of regional politics, economics and management practices. To
meet these challenges, your Fund's management team plans to use the same
disciplined investment strategy that has helped Global Dividend and Income
Fund consistently outpace its peers.
On behalf of Delaware, we wish you a joyous and prosperous New Year.
Sincerely,
/s/ Wayne A. Stork
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Wayne A. Stork
Chairman
/s/ Jeffrey J. Nick
- -------------------
Jeffrey J. Nick
President and Chief Executive Officer
discipline
Average Annual Total Return
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
Based on Net Asset Value for Periods Ended November 30, 1997
One Year Lifetime*
- -----------------------------------------------------------------------------------------------------
<S> <C> <C>
Global Dividend and Income Fund (DGF) +17.93% +15.65%
Lipper Closed-End Income Fund Average +15.91% +10.15%
DGF Rank 2 1
Number of funds in category 11 11
- -----------------------------------------------------------------------------------------------------
</TABLE>
* Fund's inception date was March 4, 1994. Past performance does not
guarantee future results. All performance assumes dividends and distributions
reinvested. The #1 ranked fund for the year ended November 30, 1997, was
Delaware Group Dividend and Income Fund, your Fund's domestic oriented
counterpart.
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Portfolio Managers' Review
During fiscal 1997, Global Dividend and Income Fund invested in an attractive
mix of domestic and foreign stocks and bonds that helped us attain our goal of
providing high current income with capital appreciation.
Common stocks made up 61.3% of your Fund's net assets as of November
30, 1997, an increase of three percentage points from a year ago. This
resulted from primarily robust capital appreciation in the U.S. stock market.
The balance of your Fund's portfolio as of year end was allocated to
preferred stocks and fixed-income securities, as shown on page 4.
Fiscal 1997 was a challenging year for income-oriented investors. In
the U.S., the Federal Reserve Board's modest interest rate increase in March
provided the medicine for the U.S. economy to keep inflation from reaching a
feverish pace. Bond prices subsequently rose while the yield on 30-year
Treasury Bonds stood at just above 6% as of year end.
Generally, better bond values could be found overseas in 1997,
especially in Europe. We believe that the sale of gold reserves by Australia,
Switzerland, Argentina and other countries during the year reflected a growing
confidence in the ability of foreign central bankers to maintain stable monetary
conditions.
Of course, most Asian countries did not enjoy stable economic
conditions or currency values. In our opinion, much of the Pacific Rim's
market volatility reflected lax, and, in some cases, irresponsible government
fiscal policies as well as high levels of private sector debt in countries
such as Thailand, Indonesia, South Korea and Japan.
Your Fund is managed with a goal of generating as much of its $0.125
monthly dividend as possible from ordinary income. The balance of the
dividend comes from short-term and long-term capital gains and, if necessary,
a return of capital. We are pleased to report since its inception, the Fund
has not had to provide a return of capital to meet its dividend.
We believe that the sale of gold reserves by several established countries in
1997 reflected a growing confidence in the ability of foreign central bankers
outside of Asia to maintain stable monetary conditions.
New President and CEO
On October 13, 1997, Jeffrey J. Nick was named President and Chief Executive
Officer of the Delaware Group of Funds. Mr. Nick has been CEO of Lincoln
National Investment Companies, Delaware's indirect parent, since October
1996. He joined Lincoln National in April 1990, and from 1992 to 1996 he
managed Lincoln's operations in the United Kingdom. Mr. Nick holds an MBA
from the University of Chicago and a bachelor's degree from Princeton
University.
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ASSET ALLOCATION
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November 30, 1997
Common and Preferred Stocks 61.8%
Non-Convertible U.S. Corporate Bonds 26.5%
Foreign Bonds 14.0%
Convertible U.S. Bonds 8.3%
Convertible Preferred Stocks 10.4%
The chart above adds up to more than 100% because the portfolio is leveraged.
Financial Stocks In Established Markets Performed Well
The largest contributors to your Fund's total return in fiscal 1997 were our
U.S. bank and real estate investment trust (REIT) holdings. These two
sectors, which represented a combined 30.8% of your Fund's net assets
as of November 30, benefited from internal expansion, restructuring and
merger activity.
The Fund's largest equity holding as of November 30 was KeyCorp, a
regional banking company based in Cleveland. (1.2% of net assets). Investors
recognized the value of the company's 1996 restructuring, an effort that
reduced operating costs. We believe this sector offers further capital
appreciation potential as the banking industry continues to consolidate.
Our largest foreign stock holding as of November 30, 1997, was
National Australia Bank (NAB). Unlike some British and Japanese banking
companies, that during the past year announced plans to sell their U.S.
operations, NAB has been seeking to expand its presence in America.
In the U.S., we are attracted to the real estate sector because we
believe the industry is undergoing a positive fundamental transformation that
we believe makes certain stocks attractive for both their income and total
return potential. We believe many REITs are undervalued compared to the
overall U.S. stock market, and that the industry is benefiting from an
increasing level of public ownership and from stronger and more sophisticated
management.
During 1997, we substantially reduced our weighting in telephone
stocks in the U.S. while maintaining our overseas weighting in this sector.
We sold our NYNEX Corp. position after the stock reached our price target
following regulatory approval of its merger with Bell Atlantic Corp. We were
disappointed, however, with Frontier Corp. and liquidated our position at a
loss. In our opinion, increasing industry competition in the U.S. has made
the industry's prospects less than clear.
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strategy
A Positive Environment for U.S. High-Yield Bonds
Fiscal 1997 was an exceptional year for the U.S. high-yield bond market.
Default rates by corporate issuers fell to historic lows, while both the
supply and demand for high-yield bonds from investors increased.
Global Dividend and Income Fund's approach to high-yield bond
investing emphasizes income and stresses capital preservation over
appreciation. We strive to achieve this by investing in bonds issued
primarily by U.S. based corporations, which are rated either B or BB, the two
highest non-investment grade ratings.
During the past year, the Fund's high-yield bond component focused on
bonds rated B with a relatively high average coupon (interest rate at the
time the bond was issued), an approach we plan to continue to follow in the
year ahead. This reflects our belief that the current healthy U.S. economic
expansion is likely to reduce default risks for many high-yield bond issuers
in 1998.
One high-yield sector that performed well beyond our expectations in
1997 was media bonds. Many of our selections exceeded our price targets during
the second half amid industry merger activity, credit quality upgrades and a
rise in advertising revenue. For example, our Cablevision Systems bonds
doubled in value - a highly unusual occurrence for any type of domestic
fixed-income security.
As of November 30, your Fund's high-yield bond component had an
average effective maturity of 8.7 years and an effective duration of 3.7
years. Duration indicates the approximate percentage change in a bond's price
given a 1% change in interest rates, although high-yield bonds tend to be
less affected by interest rates than high quality, investment grade bonds.
Seeking Stability and Value
in Foreign Bonds
During the year, we had a preference for "dollar-zone" markets, that is,
non-Asian countries that link their currency to the U.S. dollar. One of your
Fund's largest weightings in foreign bonds as of year's end were New Zealand
government securities. In our opinion, the country was an island of stability
amid a sea of Pacific Rim chaos.
GEOGRAPHIC DIVERSIFICATION
- ------------------------------------------------
November 30, 1997
United States 61.3%
Continental Europe 12.1%
United Kingdom 8.4%
Australia / New Zealand 6.7%
Latin America 3.2%
South Africa 2.9%
Canada 2.4%
Turkey 2.0%
Asian Pacific Rim 1.0%
Chart reflects securities' country of origin. Table on page 19 reflects the
currency in which the security is denominated.
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As of November 30, 1997, New Zealand bonds, on average, provided an
extra 100 basis points (1%) of yield relative to U.S. Treasury securities with
comparable maturities. Unlike here in the U.S. and in most Asian countries,
the Kiwi government had a budget surplus and has begun paying down its
overall indebtedness. Of course, the principal and interest of New Zealand
securities are not guaranteed by the U.S. government.
When we invest in overseas bonds, your Fund strives to obtain a rate
of return that is meaningfully greater than the rate of inflation in the U.S.
We also seek to preserve capital in times of weakness.
We had only limited exposure to Asian bonds in fiscal 1997. However,
two positions we held in Indonesia and South Korea (see page 12) performed
poorly, reducing the Fund's net asset value by $0.25 per share for the
calendar year.
Our emerging markets exposure was concentrated in Mediterranean Europe
and South Africa, our largest country weighting. As of year's end, long-term
South African bonds offered yields in excess of 14%. This appeared
exceptionally attractive given what we believe is the country's improving
political climate and relatively moderate inflation environment.
A Way to Add Growth and Income: Convertible Stocks and Bonds
Global Dividend and Income Fund increased its position in convertible
securities during fiscal 1997, from 13.17% of net assets a year ago to 18.67%
as of November 30, 1997.
Convertible securities tend to provide a better dividend or bond
yield than common stocks while offering somewhat less capital appreciation
potential. We typically buy convertibles to participate in the capital
appreciation of growth-oriented stocks that either do not pay a dividend or
have a dividend yield lower than the S&P 500 Index.
A particular preferred stock that performed well for us in 1997 was
We Search the World For Bonds With High Income Potential and Relative Stability
South African Government Bonds
New Zealand Government Bonds
U.S. Treasuries
<TABLE>
<CAPTION>
Canadian
Provincial South Africa New Zealand U.S.
Bonds (Quebec) Government Bonds Government Bonds Treasuries
<S> <C> <C> <C> <C>
3 Month 15.60% 7.15% 5.20%
6 Month 15.20% 7.31% 5.43%
1 Year 4.33% 15.35% 7.26% 5.50%
2 Year 4.76% 6.88% 5.74%
3 Year 5.28% 14.32% 6.87% 5.81%
4 Year 5.38% 6.86%
5 Year 5.49% 14.29% 5.84%
6 Year 5.66% 14.27% 6.81%
7 Year 5.78%
8 Year 5.92% 14.25%
9 Year 5.89%
10 Year 6.04% 14.31% 6.74% 5.88%
15 Year 6.32% 14.32% 6.74%
20 Year 14.36%
30 Year 6.48% 6.06%
Yield
</TABLE>
Source: Bloomberg Business News. The above illustration is not intended to
represent the yield of Global Dividend and Income Fund. Unlike U.S.
Treasuries, foreign bonds have currency, political and economic risks and are
not guaranteed by the U.S. government. South Africa and New Zealand do not
offer 30-year bonds.
South African, New Zealand and selected Canadian bonds each provided higher
yields in U.S. dollars for U.S. investors as of November 30, 1997.
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CHART: GLOBAL DIVIDEND AND INCOME FUND
MARKET PRICE VS. NET ASSET VALUE
DECEMBER 1, 1996, TO NOVEMBER 30, 1997
DOLLARS PER SHARE
Market Price NAV
Nov. 30, '96 $15.875 $15.810
Dec. 6, '96 $15.750 $15.680
Dec. 13, '96 $15.125 $15.550
Dec. 20, '96 $15.500 $15.770
Dec. 27, '96 $16.000 $15.830
Jan. 3, '97 $16.125 $15.770
Jan. 10, '97 $16.375 $15.910
Jan. 17, '97 $16.375 $16.130
Jan. 24, '97 $16.250 $16.050
Jan. 31, '97 $16.625 $16.050
Feb. 7, '97 $16.875 $16.160
Feb. 14, '97 $16.875 $16.230
Feb. 21, '97 $16.750 $16.290
Feb. 28, '97 $17.000 $16.220
Mar. 7, '97 $17.000 $16.460
Mar. 14, '97 $16.750 $16.220
Mar. 21, '97 $15.500 $15.900
Mar. 28, '97 $16.000 $15.990
Apr. 4, '97 $16.125 $15.590
Apr. 11, '97 $16.125 $15.400
Apr. 18, '97 $16.750 $15.580
Apr. 25, '97 $16.625 $15.450
May 2, '97 $16.750 $15.860
May 9, '97 $16.625 $16.120
May 16, '97 $16.375 $16.090
May 23, '97 $16.625 $16.270
May 30, '97 $16.625 $16.280
June 6, '97 $17.250 $16.450
June 13, '97 $17.250 $16.650
June 20, '97 $17.500 $16.820
June 27, '97 $17.500 $16.800
July 4, '97 $18.000 $17.140
July 11, '97 $17.625 $17.010
July 18, '97 $17.500 $16.990
July 25, '97 $17.625 $17.120
Aug. 1, '97 $17.875 $17.240
Aug. 8, '97 $18.000 $17.150
Aug. 15, '97 $17.875 $16.880
Aug. 22, '97 $17.625 $16.870
Aug. 29, '97 $17.625 $16.810
Sep. 5, '97 $18.063 $17.080
Sep. 12, '97 $17.938 $17.050
Sep. 19, '97 $18.125 $17.430
Sep. 26, '97 $17.938 $17.670
Oct. 3, '97 $18.500 $17.900
Oct. 10, '97 $17.873 $17.730
Oct. 17, '97 $18.438 $17.530
Oct. 24, '97 $18.875 $17.300
Oct. 31, '97 $17.938 $16.960
Nov. 7, '97 $18.500 $17.050
Nov. 14, '97 $18.250 $16.780
Nov. 21, '97 $17.875 $17.150
Nov. 30, '97 $17.313 $17.090
Source: Bloomberg Business News. Past performance does not guarantee future
results.
SunAmerica, an insurance company that provides retirement products
such as life insurance, annuities and trust services.
<PAGE>
Overall, the convertibles market significantly underperformed the S&P
500 Index during fiscal 1997. The total return of the Merrill Lynch
Convertibles Index was +17.89% for the 12 months ended November 30, 1997,
more than 900 basis points (9%) less than the S&P 500. As with other asset
classes the Fund invests in, we take a diversified approach to convertibles
and are not heavily weighted in any one industry.
Outlook
In the coming year, we expect to look carefully at telecommunications and
utility stocks. As both industries continue to be deregulated on a global
basis, we think well-managed companies will thrive and expand at the expense
of less efficient operations. One of our holdings that performed well in 1997
and we believe has further potential is Telefonica de Espana. The Spanish
company is aggressively pursuing contracts to construct information networks
in Latin America.
In 1998, we will continue to monitor developments in Asia, where some
value-oriented investment opportunities may develop. Generally, we expect to
remain focused on Europe as the primary area for foreign stock selection for
the Fund.
Within the U.S., we believe increasing competition in the electric
utility industry in states such as California and Massachusetts may present
intriguing investment opportunities. Although competition could increase
utility stock price volatility in the coming years, we believe this sector
offers attractive dividend yields. Stocks of companies who can effectively
compete may also offer capital appreciation potential.
We expect financial stocks such as banks and REITs to continue to
play an important role in your Fund's portfolio in 1998. Banks have begun to
offer more innovative products and services and are at
outlook
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Top 10 Common Stock Holdings
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November 30, 1997
<TABLE>
<CAPTION>
Company Industry Percent of Net Assets
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C>
KeyCorp Banking 1.3%
Patriot American Hospitality REIT 1.2
Summit Bancorp Banking 1.1
National Australia Bank Banking 1.0
Mellon Bank Banking 1.0
Texaco Oil 1.0
Prentiss Properties Trust REIT 1.0
GKN pic UK Engineering 1.0
Cali Realty REIT 0.9
Brambles Industries Australian Transportation 0.9%
- ---------------------------------------------------------------------------------------------------------
Total 10.4%
</TABLE>
the same time increasing profit margins through increased economies of scale.
In addition, more banks are deriving a greater percentage of revenue from
services, which tend to be more profitable than loans.
Since technology stocks typically do not meet our income
requirements, we anticipate that we will remain underweighted in this
volatile sector.
Overall, many domestic economic indicators remain positive. Despite
the lowest unemployment rate in 24 years, U.S. inflation was just 1.7% for
the 12 months ended November 30, 1997, providing a healthy climate for
financial assets, especially interest-rate sensitive companies. In addition,
many industrial companies are finding new ways to boost profits through new
technology, mergers and restructuring.
By providing income from several asset classes, we believe Global
Dividend and Income Fund can offer investors portfolio diversification and
potential risk reduction. We are pleased to report that during October 1997,
the Fund's share price reached a record premium of 9.1% to its net asset
value, as shown in the chart on page 7. We take this as a sign of continuing
confidence in our consistent investment discipline.
Babak Zenouzi
Vice President and Senior Portfolio Manager - U.S. Equities
Paul A. Matlack
Vice President and Senior Portfolio Manager - U.S. Fixed-Income
Clive A. Gillmore
Director and Senior Portfolio Manager - Foreign Equities
Ian G. Sims
Director and Senior Portfolio Manager - Foreign Fixed-Income
December 8, 1997
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Fund Performance
GLOBAL DIVIDEND AND INCOME FUND - GROWTH OF A $10,000 INVESTMENT
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MARCH 4, 1994 TO NOVEMBER 30, 1997
Dividend and Income Fund $17,230
Lipper Closed-End Income Fund Average (9 Funds) $15,295
Above performance assumes reinvestment of distributions. Past performance
does not guarantee future results. DGF shares were initially offered with a
sales charge of 6%. Performance since inception does not include this or any
brokerage commissions for purchases made since inception.
A $10,000 Investment in Global Dividend and Income Fund when the fund began
operating on March 4, 1994, would have grown to $17,230 as of November 30,
1997, based on net asset value with dividends and distributions reinvested.
That's nearly 20% higher than the average of the Fund's peers during the same
period.
About Our Share Buyback Program
In 1994, Global Dividend and Income Fund's board of directors
authorized a share repurchase program that authorizes the Fund's lead manager
to purchase up to 10% of the Fund's outstanding shares on the floor of the New
York Stock Exchange. During fiscal 1997, the Fund did not utilize this option
because, given the Fund's market price, we believed there were more effective
ways of enhancing shareholder value.
Your Reinvestment Options
If your shares are not held in "street" name and you are not already
reinvesting dividends, Global Dividend and Income Fund offers an automatic
dividend reinvestment program. If you would like to reinvest dividends and
shares are registered in your name, contact Investors Fiduciary Trust Co. at
1.800.596.8396. You will be asked to put your request in writing. If you have
shares registered in "street" name, contact the broker/dealer holding the
shares or your financial adviser.
<PAGE>
10 closed-end income
Financial Statements
Delaware Group Global Dividend And Income Fund, Inc.
Statement Of Net Assets
November 30, 1997 Number Market
of Shares Value
COMMON STOCK - 61.29%
Automobiles & Auto Equipment - 3.59%
Chrysler ......................................... 25,000 $ 857,812
Continental AG ................................... 26,000 648,589
General Motors ................................... 16,000 976,000
GKN .............................................. 51,000 1,111,008
T & N ............................................ 116,000 489,569
-----------
4,082,978
-----------
Banking, Finance & Insurance - 8.89%
Cho Hung Bank - GDR Reg. S Shares ................ 17,066 40,532
Commonwealth Bank of Australia ................... 52,000 617,355
CoreStates Financial ............................. 10,000 773,125
First Chicago NBD ................................ 13,000 1,017,250
Fleet Financial Group ............................ 12,300 812,569
ING Groep NV ..................................... 16,000 650,318
KeyCorp .......................................... 21,000 1,416,187
Mellon Bank ...................................... 20,000 1,133,750
National Australia Bank .......................... 88,000 1,166,325
National Mutual Holdings ......................... 35,000 55,081
PT Bank Dagang Nasional Indonesia ................ 1,475,124 161,768
PT Bank Dagang Nasional Indonesia Warrants (a) ... 213,874 2,815
Summit Bancorp ................................... 27,000 1,258,875
Washington Mutual ................................ 14,500 1,002,312
-----------
10,108,262
-----------
Buildings & Materials - 0.38%
Compagnie de Saint-Gobain ........................ 3,200 434,726
-----------
434,726
-----------
Cable, Media & Publishing - 0.44%
Elsevier NV ...................................... 29,500 498,604
-----------
498,604
-----------
Chemicals - 0.67%
Bayer AG ......................................... 20,750 765,024
-----------
765,024
-----------
Electronics - 1.10%
AMP .............................................. 14,200 616,812
Siemens AG ....................................... 10,750 636,895
-----------
1,253,707
-----------
Energy - 4.36%
Centrica ......................................... 91,000 132,619
Duke Energy ...................................... 10,000 520,000
Elf Gabon SA ..................................... 2,200 405,828
El Paso Natural Gas .............................. 15,000 920,625
PacifiCorp ....................................... 20,000 466,250
Royal Dutch Petroleum ............................ 16,200 843,431
RWE AG ........................................... 11,000 540,075
Texaco ........................................... 20,000 1,130,000
-----------
4,958,828
-----------
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Number Market
of Shares Value
COMMON STOCK (Continued)
Food, Beverage & Tobacco - 3.87%
Fortune Brands ................................. 15,900 $ 575,381
Foster's Brewing Group ......................... 291,542 540,602
Philip Morris Companies ........................ 20,000 870,000
RJR Nabisco Holdings ........................... 24,000 874,500
Southcorp ...................................... 255,000 786,908
Unigate ........................................ 77,000 750,486
-----------
4,397,877
-----------
Healthcare & Pharmaceuticals - 1.25%
Baxter International ........................... 10,000 506,250
Glaxo Wellcome ................................. 39,370 912,046
-----------
1,418,296
-----------
Leisure, Lodging & Entertainment - 0.68%
Bass ........................................... 54,000 771,504
-----------
771,504
-----------
Metals & Mining - 0.52%
Rio Tinto ...................................... 49,000 596,049
-----------
596,049
-----------
Packaging & Containers - 0.26%
Amcor .......................................... 66,000 295,796
-----------
295,796
-----------
Paper & Forest Products - 0.88%
Carter Holt Harvey ............................. 200,000 289,877
Georgia-Pacific ................................ 8,300 708,612
-----------
998,489
-----------
Real Estate - 24.27%
Alexandria Real Estate Equities ................ 20,700 644,287
Apartment Investment & Management .............. 24,700 873,762
Brandywine Realty Trust ........................ 30,300 732,881
Burnham Pacific Properties ..................... 45,000 644,063
Cali Realty .................................... 27,000 1,071,563
Camden Property Trust .......................... 25,000 817,188
CarrAmerica Realty ............................. 30,000 903,750
Duke Realty Investments ........................ 38,000 874,000
Equity Residential Properties Trust ............ 20,000 1,000,000
Essex Property Trust ........................... 27,000 975,375
Excel Realty Trust ............................. 32,000 976,000
FelCor Suite Hotels ............................ 22,000 798,875
First Industrial Realty Trust .................. 23,000 812,188
Glenborough Realty Trust ....................... 30,300 818,100
Golf Trust of America .......................... 33,400 901,800
Grove Property Trust ........................... 50,000 543,750
Health Care REIT ............................... 24,750 632,672
JDN Realty ..................................... 29,000 900,813
Kilroy Realty .................................. 24,200 635,250
Kimco Realty ................................... 12,900 443,438
Lexington Corporate Properties ................. 39,900 581,044
______
Top 10 common stock holdings, representing 10.36% of net assets, are in
boldface.
<PAGE>
closed-end income 11
Statement of Net Assets (Continued)
Number Market
of Shares Value
COMMON STOCK (Continued)
Real Estate (Continued)
Liberty Property Trust ........................... 31,142 $ 870,030
Macerich Company (The) .......................... 36,000 976,500
Pacific Gulf Properties .......................... 45,000 1,006,875
Pan Pacific Retail Properties .................... 33,800 692,900
Patriot American Hospitality ..................... 42,000 1,312,500
Prentiss Properties Trust ........................ 43,508 1,125,770
Public Storage ................................... 32,000 884,000
Reckson Associates Realty ........................ 39,000 1,035,937
Sovran Self Storage .............................. 20,000 610,000
Spieker Properties ............................... 25,000 1,015,625
Sun Communities .................................. 20,000 728,750
Trammell Crow .................................... 16,700 367,400
Union du Credit-Bail Immobilier .................. 2,700 259,779
Wharf (Holdings) ................................ 59,000 120,209
-----------
27,587,074
-----------
Retail - 0.84%
Boots ............................................ 65,000 953,850
-----------
953,850
-----------
Telecommunications - 2.16%
GTE .............................................. 15,700 793,831
Telecom Corporation of New Zealand ............... 189,000 969,841
Telefonica de Espana ............................. 21,000 605,532
Telstra .......................................... 46,046 82,862
-----------
2,452,066
-----------
Transportation & Shipping - 1.33%
Brambles Industries .............................. 55,000 1,053,991
British Airways .................................. 50,000 458,687
-----------
1,512,678
-----------
Utilities - 5.15%
BG ............................................... 80,294 380,135
Cable & Wireless ................................. 88,000 773,189
Electrabel SA .................................... 2,950 659,879
Hong Kong Electric Holdings ...................... 200,000 676,559
IberdrolaSA ...................................... 56,000 715,373
OGE Energy ....................................... 12,000 610,500
Rochester Gas & Electric ......................... 20,000 550,000
Texas Utilities .................................. 20,000 800,000
United Utilities ................................. 53,000 683,102
-----------
5,848,737
-----------
Miscellaneous - 0.65%
Eridania Beghin-Say SA ........................... 2,550 396,528
Jardine Matheson Holdings ........................ 64,800 343,440
-----------
739,968
-----------
Total Common Stock (cost $54,544,970) ............ 69,674,513
-----------
CONVERTIBLE PREFERRED STOCK - 10.38%
Automobiles & Auto Equipment - 0.57%
+BTI Cap Trust 6.50% ............................ 12,500 645,312
-----------
645,312
-----------
<PAGE>
Number Market
of Shares Value
CONVERTIBLE PREFERRED STOCK (Continued)
Banking, Finance & Insurance - 1.95%
Salomon 7.625% series FSA "DECS" ............... 30,000 $1,173,750
SunAmerica $3.188 "PERCS" ...................... 22,500 1,046,250
-----------
2,220,000
-----------
Buildings & Materials - 0.40%
Blue Circle Industries 7.625% .................. 150,000 453,633
-----------
453,633
-----------
Cable, Media & Publishing - 3.93%
Cablevision Systems Series I 8.50% ............. 33,000 1,159,125
Chancellor Media 7.00% ........................ 14,000 1,240,750
+Evergreen Media $3.00 ......................... 17,000 1,126,250
Metromedia Intl Group 7.25% .................... 20,500 943,000
-----------
4,469,125
-----------
Energy - 0.68%
+CalEnergy Capital Trust 3 6.50% ................ 16,000 768,000
-----------
768,000
-----------
Healthcare & Pharmaceuticals - 0.43%
Medpartners 6.50% "TAPS" ....................... 20,200 484,800
-----------
484,800
-----------
Metals & Mining - 0.31%
Worthington Industries 7.25% "DECS" ............ 23,100 358,050
-----------
358,050
-----------
Telecommunications - 0.73%
+Loral Space & Communication 6.00% .............. 13,000 828,750
-----------
828,750
-----------
Transportation & Shipping - 0.65%
+Greyhound Lines 8.50% ......................... 26,500 742,000
-----------
742,000
-----------
Utilities - 0.73%
Houston Industries 7.00% "ACES" ................ 15,000 832,500
-----------
832,500
-----------
Total Convertible Preferred Stock
(cost $9,673,635) ............................ 11,802,170
-----------
PREFERRED STOCK - 0.52%
Cable, Media & Publishing - 0.52%
American Radio Systems Series B 11.375% ........ 73 8,614
Granite Broadcasting 12.75% .................... 542 577,230
-----------
585,844
-----------
Total Preferred Stock (cost $507,562) .......... 585,844
-----------
Principal
Amount
NON-CONVERTIBLE BONDS - 40.50%
Aerospace & Defense - 0.28%
Derlan Manufacturing sr notes 10.00% 2007 ........ US$300,000 315,000
-----------
315,000
-----------
Automobiles & Auto Equipment - 1.20%
Collins & Aikman
Series B sr sub notes 10.00% 2007 ............... US$275,000 288,750
<PAGE>
12 closed-end income
Statement of Net Assets (Continued)
Principal Market
Amount Value
NON-CONVERTIBLE BONDS (Continued)
Automobiles & Auto Equipment (Continued)
Exide sr notes 10.75% 2002 ..................... US$ 400,000 $ 422,000
Motors and Gears Series B sr notes 10.75% 2006 . US$ 200,000 212,500
Venture Holdings Trust sr sub notes 9.75% 2004 . US$ 457,000 441,576
-----------
1,364,826
-----------
Banking, Finance & Insurance -2.98%
Banco Nacional de Comercia Exterior
unsec deb 7.25% 2004 ......................... US$ 750,000 690,937
Bank of Greece Series RG
unsec deb (loan stock) 10.75% 2010 ............ GBP 120,000 253,731
DVI unsec sr notes 9.875% 2004 ................. US$ 275,000 286,000
European Bank for Reconstruction & Development
unsec marathon bonds 15.25% 1998 .............. GRD100,000,000 361,969
European Investment Bank deb 17.50% 1999 ....... GRD 50,000,000 190,129
First Nationwide Holdings
sr sub notes 9.125% 2003 ...................... US$ 300,000 313,500
International Finance
unsec marathon bonds 15.25% 1999 .............. GRD150,000,000 559,550
National Bank of Hungary sr deb 10.00% 2003 .... GBP 400,000 737,522
-----------
3,393,338
-----------
Buildings & Materials - 0.79%
American Builders and Contractors Series B
sr unsec sub notes 10.625% 2007 ............... US$ 275,000 286,687
American Standard sr notes 10.875% 1999 ........ US$ 450,000 475,875
Atrium Companies sr sub notes 10.50% 2006 ...... US$ 125,000 131,250
-----------
893,812
-----------
Cable, Media & Publishing - 1.16%
Century Communications sr notes 9.75% 2002 ..... US$ 600,000 631,500
Granite Broadcasting sr sub notes 9.375% 2005 .. US$ 500,000 498,750
Muzak LP/Capital sr unsec notes 10.00% 2003 .... US$ 80,000 83,600
Rogers Cablesystems
sr unsec sub deb 11.00% 2015 .................. US$ 90,000 102,600
-----------
1,316,450
-----------
Chemicals - 0.62%
BPC Holding Series B sr sec notes 12.50% 2006 .. US$ 250,000 275,312
UCC Investors sr sub notes 11.00% 2003 ......... US$ 400,000 426,000
-----------
701,312
-----------
Computers & Technology - 0.11%
Unisys sr unsec notes 11.75% 2004 .............. US$ 105,000 119,700
-----------
119,700
-----------
Consumer Products - 0.78%
American Safety Razor Series B
sr notes 9.875% 2005 ......................... US$ 475,000 508,250
+Fedders North America
sr sub notes 9.375% 2007 ....................... US$ 250,000 255,625
Pen-Tab Industries Series B
sr unsec sub notes 10.875% 2007 ............... US$ 125,000 118,437
-----------
882,312
-----------
Electronics - 0.32%
+HCC Industries sr sub notes 10.75% 2007 ........ US$ 250,000 261,875
<PAGE>
Principal Market
Amount Value
NON-CONVERTIBLE BONDS (Continued)
ELECTRONICS (Continued)
+Insilco sr sub notes 10.25% 2007 ............ US$ 100,000 $ 103,750
-----------
365,625
-----------
Energy - 0.65%
Falcon Drilling Series B sr notes 8.875% 2003 US$ 500,000 527,500
Trizec Hahn Series B sr notes 10.875% 2005 .. US$ 200,000 217,000
-----------
744,500
-----------
Food, Beverage & Tobacco - 0.88%
AFC Enterprises
sr unsec sub notes 10.25% 2007 ............. US$ 250,000 262,500
Core-Mark International
sr sub notes 11.375% 2003US$ 100,000105,500
Delta Beverage sr notes 9.75% 2003 .......... US$ 500,000 528,750
PMI Acquisition sr sub notes 10.25% 2003 .... US$ 100,000 106,000
-----------
1,002,750
-----------
Foreign Currency Linked Notes - 2.38%
IDR Currency Linked Notes 0.00% 1998 ........ US$ 2,000,000 1,379,698
South Korean Won Currency
Linked Notes 0.00% 1998 .................... US$ 2,000,000 1,328,348
-----------
2,708,046
-----------
Foreign Government - 15.05%
Argentina Global Bond 9.75% 2027 ............ US$ 369,000 339,480
Hellenic Republic 11.00% 1999 ............... GRD 150,000,000 535,163
Hydro-Quebec (loan stock) 12.75% 2015 ....... GBP 160,000 416,483
Mexican United States
Global Bond 9.875% 2007 .................... US$ 50,000 778,594
Mexican Cetes (T-Bills) 0.00% 1998 .......... MXN 1,500,000 1,538,104
New Zealand Government 8.00% 2001 ........... NZD 2,000,000 1,273,859
New Zealand Government 8.00% 2004 ........... NZD 2,000,000 1,310,803
*Poland Global par bond 3.00% 2024 (b) ....... US$ 2,000,000 1,215,000
Republic of Argentina Series BGLO
sr unsec unsub 8.375% 2003 ................. US$ 500,000 471,250
*Republic of Brazil - IDU Series A
deb 6.8125% 2001 (b) ...................... US$ 392,500 362,081
Republic of Columbia
unsec unsub 7.625% 2007 .................... US$ 1,000,000 923,125
Republic of South Africa
Series 160 10.75% 1998 ..................... ZAR 2,500,000 496,107
Republic of South Africa
Series 162 12.50% 2002 ..................... ZAR 14,000,000 2,725,364
Republic of Turkey
unsec deb 9.00% 2003 ...................... GBP 400,000 625,061
Russian Ministry of Finance
unsec unsub 9.25% 2001 ..................... US$ 500,000 478,750
Spanish Government 11.30% 2002 .............. ESP 170,000,000 1,392,205
Turkish T-Bill 0.00% 1998 ................... TRL80,000,000,000 2,226,323
-----------
17,107,752
-----------
Healthcare & Pharmaceuticals - 0.37%
Healthsouth sr sub notes 9.50% 2001 ......... US$ 200,000 210,500
Paracelsus Healthcare
sr unsec sub notes 10.00% 2006 ............. US$ 200,000 208,500
-----------
419,000
-----------
<PAGE>
closed-end income 13
Statement of Net Assets (Continued)
Principal Market
Amount Value
Industrials - 0.53%
Hawk sr notes 10.25% 2003 ........................ US$ 150,000 $ 159,375
IMO Industries sr sub notes 11.75% 2006 .......... US$ 400,000 442,000
----------
601,375
----------
Leisure, Lodging & Entertainment - 1.55%
+Alliance Gaming
sr sub notes 10.00% 2007 ........................ US$ 200,000 201,500
Cinemark USA Series B
sr sub notes 9.625% 2008 ........................ US$ 500,000 517,500
Scott's Hospitality Series A
unsec deb 10.95% 2001 .......................... CAD 800,000 650,529
Trump Atlantic City Associates Funding
sec 1st mtg notes 11.25% 2006 ................... US$ 400,000 397,000
----------
1,766,529
----------
Metals & Mining - 1.34%
Commonwealth Aluminum
sr sub notes 10.75% 2006 ........................ US$ 200,000 215,000
+Keystone Consolidated Industries
sr sec notes 9.625% 2007 ........................ US$ 600,000 616,500
Oregon Steel Mills
sec 1st mtg notes 11.00% 2003 ................... US$ 200,000 217,000
Weirton Steel sr notes 11.375% 2004 .............. US$ 450,000 478,125
----------
1,526,625
----------
Packaging & Containers - 0.51%
Container Corporation of America Series A
sr notes 11.25% 2004 ........................... US$ 200,000 218,500
Pierce Leahy sr sub notes 11.125% 2006 ........... US$ 129,000 146,092
Pierce Leahy sr sub notes 9.125% 2007 ............ US$ 200,000 210,000
----------
574,592
----------
Paper & Forest Products - 1.02%
Domtar deb 10.85% 2017 .......................... CAD1,000,000 949,774
Four M Series B sr sec notes 12.00% 2006 ......... US$ 100,000 107,250
Pacific Lumber sr unsec notes 10.50% 2003 ........ US$ 100,000 103,875
----------
1,160,899
----------
Retail - 3.14%
ASDA Group unsec unsub deb 10.875% 2010 .......... GBP 500,000 1,081,431
Cole National Group sr sub notes 9.875% 2006 ..... US$ 500,000 533,750
Cort Furniture Rental sr notes 12.00% 2000 ....... US$ 142,000 156,555
Fleming Companies sr notes 10.625% 2001 .......... US$ 400,000 424,000
Provigo Series 1991 deb 11.25% 2001 .............. CAD 800,000 651,591
Ralph's Grocery sr notes 10.45% 2004 ............. US$ 400,000 450,000
+Wilsons Leather sr notes 11.25% 2004 ............. US$ 275,000 274,312
----------
3,571,639
----------
Telecommunications - 1.11%
Jacor Communications
sr unsec sub notes 9.75% 2006 ................... US$ 500,000 532,500
Outdoor Communications
sr sub notes 9.25% 2007 ........................ US$ 225,000 226,125
Rogers Communications
sr unsec notes 8.875% 2007 ...................... US$ 500,000 501,250
----------
1,259,875
----------
<PAGE>
Principal Market
Amount Value
NON-CONVERTIBLE BONDS (Continued)
Textiles - 0.48%
GFSI Series B sr unsec sub notes 9.625% 2007 .. US$ 200,000 $ 205,000
Synthetic Industries Series B
sr sub notes 9.25% 2007 ..................... US$ 325,000 340,438
----------
545,438
----------
Transportation & Shipping- 0.65%
+Atlantic Express sr sec notes 10.75% 2004 ..... US$ 300,000 315,000
Blue Bird Body Series B
sr sub notes 10.75% 2006 ..................... US$ 200,000 214,250
Teekay Shipping 1st
pfd ship mtg notes 9.625% 2003 ............... US$ 198,000 207,653
----------
736,903
----------
Utilities - 1.16%
AES sr unsec sub notes 10.25% 2006 ............ US$ 400,000 430,000
Calpine sr notes 10.50% 2006 .................. US$ 400,000 432,000
Midland Funding II Series A deb 11.75% 2005 ... US$ 400,000 460,000
----------
1,322,000
----------
Miscellaneous - 1.44%
Graphic Controls Series A
sr sub notes 12.00% 2005 ..................... US$1,000,000 1,117,500
+Huntsman sr sub notes 9.50% 2007 .............. US$ 500,000 525,000
----------
1,642,500
----------
Total Non-Convertible Bonds
(cost $46,412,310) .......................... 46,042,798
----------
CONVERTIBLE BONDS - 8.29%
Aerospace and Defense - 0.88%
+Kellstrom Industries sub notes 5.75% 2002 ..... US$ 875,000 995,312
----------
995,312
----------
Business Services - 0.76%
Corestaff sub notes 2.94% 2004 ................ US$ 700,000 595,875
+Personnel Group of America sub notes 5.75% 2004 US$ 220,000 265,100
----------
860,975
----------
Electronics - 1.17%
+Atmel SA 3.25% 2002 (b) ...................... US$ 500,000 482,500
+Integrated Process Equipment
sub notes 6.25% 2004 ........................ US$ 700,000 655,375
Kent Electronics sub notes 4.50% 2004 ......... US$ 210,000 195,563
----------
1,333,438
----------
Healthcare & Pharmaceuticals - 0.82%
+Sunrise Assisted Living sub notes 5.50% 2002 .. US$ 800,000 932,000
----------
932,000
----------
Industrials - 0.76%
+Thermo Fibertek sub notes 4.50% 2004 .......... US$ 835,000 868,400
----------
868,400
----------
Leisure, Lodging & Entertainment - 0.58%
Capstar Hotel sub notes 4.75% 2004 ............ US$ 640,000 664,000
----------
664,000
----------
<PAGE>
14 closed-end income
Statement of Net Assets (Continued)
Principal Market
Amount Value
CONVERTIBLE BONDS (Continued)
Paper & Forest Products - 0.17%
Repola unsec sub deb 6.50% 2004 ................ FIM 1,000,000 $ 196,958
-------------
196,958
-------------
Real Estate - 1.80%
+Atria Communities sub notes 5.00% 2002 ......... US$ 475,000 481,531
IRT Property sub deb 7.30% 2003 ................ US$ 500,000 551,250
LTC Properties sub deb 8.50% 2000 .............. US$ 500,000 681,250
LTC Properties sub deb 8.50% 2001 .............. US$ 250,000 329,375
-------------
2,043,406
-------------
Telecommunications - 1.35%
+Smartalk Teleservices sub notes 5.75% 2004 ..... US$ 855,000 867,825
+Tel-Save Holdings sub notes 4.50% 2002 ......... US$ 615,000 664,969
-------------
1,532,794
-------------
Total Convertible Bonds (cost $8,848,037) ...... 9,427,283
-------------
TOTAL MARKET VALUE OF SECURITIES OWNED - 120.98%
(cost $119,986,514) ....................................... 137,532,608
LIABILITIES NET OF RECEIVABLES AND OTHER ASSETS - (20.98)% . (23,848,092)
-------------
NET ASSETS APPLICABLE TO 6,650,647 SHARES ($0.01 par value)
OUTSTANDING; EQUIVALENT TO $17.09 PER SHARE - 100.00% ..... $ 113,684,516
=============
______
GDR - Global Depository Receipt
DECS - Dividend Enhanced Convertible Stock
PERCS - Preferred Equity Redemption Cumulative Stock
TAPS - Threshold Appreciation Price Security
ACES - Automatic Common Exchange Security
+ Securities exempt from registration under Rule 144A of the Securities Act
of 1933, as amended. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers. At November
30, 1997, these securities amounted to $12,876,886 or 11.33% of net
assets.
* Sovereign debt obligations issued as part of debt restructuring that are
collateralized in full as to principal due at maturity by U.S. Treasury
zero coupon obligations which have the same maturity as the Brady Bond.
(a) The warrants enable the holder to subscribe to one ordinary share for
every one warrant held at IDR 725 per share until February 14, 2000.
(b) Coupon will increase periodically based upon a predetermined schedule.
Stated interest rate in effect at November 30, 1997.
CAD - Canadian dollar MXN - Mexican peso
ESP - Spanish peseta NZD - New Zealand dollar
FIM - Finnish markka TRL - Turkish lira
GBP - British pound US$ - U.S. dollar
GRD - Greek drachma ZAR - South African rand
HKD - Hong Kong Dollar
COMPONENTS OF NET ASSETS AT NOVEMBER 30, 1997:
Common stock, $0.01 par value, 500,000,000 shares
authorized to the Fund ..................................... $ 93,096,054
Accumulated net realized gain on investments ................ 3,048,287
Net unrealized appreciation of investments and foreign
currencies ................................................. 17,540,175
------------
Total net assets ............................................ $113,684,516
============
<PAGE>
Delaware Group
Global Dividend and Income Fund, Inc.
Statement of Operations
Year Ended November 30, 1997
INVESTMENT INCOME:
Interest (net of foreign taxes
withheld of $3,031) ........................ $ 5,948,148
Dividends (net of foreign taxes
withheld of $103,001) ...................... 3,651,662 $ 9,599,810
------------ ------------
EXPENSES:
Management fees ............................... 943,458
Administrative fees ........................... 208,640
Amortization of line of credit organization
expenses ..................................... 36,631
Reports to shareholders ....................... 34,184
Professional fees ............................. 32,678
Custodian fees ................................ 30,500
Amortization of organization expenses ......... 24,820
Transfer agent fees ........................... 18,750
Taxes, other than taxes on income ............. 12,932
NYSE fees ..................................... 12,131
Directors' fees ............................... 7,588
Other ......................................... 18,658
------------
Total operating expenses
(before interest expense) ................... 1,380,970
Interest expense .............................. 1,564,923
------------
Total expenses ................................ 2,945,893
------------
NET INVESTMENT INCOME ......................... 6,653,917
------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on:
Investment transactions ..................... 5,606,097
Foreign currencies .......................... (308,354)
------------
Net realized gain ............................. 5,297,743
Net change in unrealized appreciation on
investments and foreign currencies .......... 6,588,624
------------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS AND FOREIGN CURRENCIES ....... 11,886,367
------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ............................. $ 18,540,284
============
See accompanying notes
<PAGE>
closed-end income 15
Delaware Group
Global Dividend and Income Fund, Inc.
Statements of Changes In Net Assets
Year Ended Year Ended
11/30/97 11/30/96
OPERATIONS:
Net investment income .................... $ 6,653,917 $ 6,538,717
Net realized gain on investments
and foreign currencies .................. 5,297,743 4,014,840
Net change in unrealized appreciation
on investments and foreign currencies ... 6,588,624 11,042,342
------------- -------------
Net increase in net assets
resulting from operations ............... 18,540,284 21,595,899
------------- -------------
DIVIDENDS AND DISTRIBUTIONS
TO SHAREHOLDERS FROM:
Net investment income .................... (6,345,563) (6,803,835)
Net realized gains on investment
transactions ............................ (3,630,467) (3,172,135)
------------- -------------
(9,975,970) (9,975,970)
------------- -------------
NET INCREASE IN NET ASSETS ............... 8,564,314 11,619,929
NET ASSETS:
Beginning of year ........................ 105,120,202 93,500,273
------------- -------------
End of year .............................. $ 113,684,516 $ 105,120,202
============= =============
See accompanying notes
<PAGE>
Delaware Group
Global Dividend and Income Fund, Inc.
Statement of Cash Flows
Year Ended November 30, 1997
Increase (Decrease) in Cash:
(Including Foreign Currency)
Cash flows provided by operating activities:
Interest and dividends received (excluding
amortization of $771,502) ............................... $ 9,356,856
Operating expenses paid .................................... (936,366)
Interest expenses paid ..................................... (1,553,465)
Sale of short-term portfolio investments, net .............. 1,214,330
Purchase of long-term portfolio investments ................ (92,188,367)
Proceeds from disposition of long-term
portfolio investments .................................... 93,646,524
------------
Net cash provided by operating activities .................. 9,539,512
------------
Cash flows used for financing activities:
Cash dividends paid ........................................ (9,975,970)
------------
Net cash used for financing activities ..................... (9,975,970)
------------
Effect of exchange rates on cash ........................... (124,928)
------------
Net decrease in cash ....................................... (561,386)
Cash at beginning of year .................................. 561,386
------------
Cash at end of year ........................................ $ 0
============
Reconciliation of Net Increase in Net Assets
Resulting from Operations to Net Cash (Including
Foreign Currency) Provided by Operating Activities:
Net increase in net assets resulting from operations ....... $ 18,540,284
------------
Decrease in investments .................................. 1,969,233
Net realized gain from investment transactions ........... (5,606,097)
Net realized foreign exchange losses ..................... 308,354
Net change in unrealized appreciation of
investments and foreign currencies ...................... (6,588,624)
Decrease in receivable for investments sold .............. 2,050,445
Decrease in interest and dividends receivable ............ 528,548
Decrease in deferred organizational expenses ............. 61,451
Decrease in payable for investments purchased ............ (2,118,693)
Increase in interest payable ............................. 11,458
Increase in accrued expenses and other liabilities ....... 383,153
------------
Total adjustments ........................................ (9,000,772)
------------
Net cash provided by operating activities .................. $ 9,539,512
============
See accompanying notes
<PAGE>
16 closed-end income
Delaware Group
Global Dividend and Income Fund, Inc.
Financial Highlights
November 30, 1997
Selected data for each share of the Fund outstanding throughout each period
were as follows:
<TABLE>
<CAPTION>
For the Period
Year Ended Year Ended Year Ended 3/4/94* to
11/30/97 11/30/96++ 11/30/95++ 11/30/94++
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ........................................... $15.81 $14.06 $13.09 $14.00
Income (loss) from investment operations:
Net investment income ...................................................... 1.00 0.98 1.14 0.84
Net realized and unrealized gain (loss) on investments and
foreign currencies ...................................................... 1.78 2.27 1.15 (1.05)
-------- -------- ------- -------
Total from investment operations ........................................... 2.78 3.25 2.29 (0.21)
-------- -------- ------- -------
Less dividends and distributions:
Dividends from net investment income ....................................... (0.95) (1.02) (1.32) (0.70)
Distributions from net realized gains on investment transactions ........... (0.55) (0.48) -- --
-------- -------- ------- -------
Total dividends and distributions .......................................... (1.50) (1.50) (1.32) (0.70)
-------- -------- ------- -------
Net asset value, end of period ................................................. $17.09 $15.81 $14.06 $13.09
======== ======== ======= =======
Market value, end of period .................................................... $17.31 $15.88 $13.75 $11.75
======== ======== ======= =======
Total return based on:1
Market value ............................................................... 18.98% 27.42% 29.74% (17.15%)
======== ======== ======= =======
Net asset value ............................................................ 17.93% 24.10% 19.08% (1.11%)
======== ======== ======= =======
Ratios and supplemental data:
Net assets, end of period (000 omitted) .................................... $113,685 $105,120 $93,500 $87,780
======== ======== ======= =======
Ratio of total operating expenses to adjusted average weekly net assets
(before interest expense) ............................................... 1.02% 1.09% 1.13% 1.32%**
Ratio of interest expense to adjusted average weekly net assets ............ 1.16% 1.06% N/A N/A
Ratio of net investment income to adjusted average weekly net assets ....... 4.93% 5.59% 8.39% 8.54%**
Portfolio turnover ......................................................... 68% 88% 101% 86%
Average commission rate paid ............................................... $0.0381 $0.0390 N/A N/A
Leverage analysis:
Debt outstanding at end of period (000 omitted). . ......................... $25,000 $25,000 N/A N/A
Average daily balance of debt outstanding (000 omitted) .................... $25,000 $20,355 N/A N/A
Average daily balance of shares outstanding (000 omitted) .................. 6,651 6,651 N/A N/A
Average debt per share ..................................................... $3.76 $3.06 N/A N/A
</TABLE>
______
* Commencement of operations.
** Annualized.
+ Net of underwriter's discount of $0.90 and offering costs of
$0.10 charged to paid-in capital with respect to issuance of common
shares.
++ Certain prior year information has been reclassified to
conform with current year presentation.
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
calculated based on market value and net asset value for a period of less
than one year have not been annualized.
See accompanying notes
<PAGE>
closed-end income 17
DELAWARE GROUP
GLOBAL DIVIDEND AND INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS
NOVEMBER 30, 1997
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, as amended. The Fund is organized as a
Maryland corporation. The primary investment objective is to seek high current
income. Capital appreciation is a secondary objective.
1. Significant Accounting Policies
The following accounting policies are in accordance with generally accepted
accounting principles and are consistently followed by the Fund.
Security Valuation - Securities listed on an exchange are valued at the last
quoted sales price as of the close of the NYSE on the valuation date.
Securities not traded or securities not listed on an exchange are valued at
the mean of the last quoted bid and asked prices. Securities listed on a
foreign exchange are valued at the last quoted sales price before the Fund is
valued. Long-term debt securities are valued by an independent pricing service
and such prices are believed to reflect the fair value of such securities.
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. Short-term instruments having less than 60 days to maturity are valued
at amortized cost which approximates market value. Other securities and assets
for which market quotations are not readily available are valued at fair value
as determined in good faith by or under the direction of the Fund's Board of
Directors.
Federal Income Taxes - The 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 has been made in the
financial statements. Income and capital gain distributions are determined in
accordance with federal income tax regulations which may differ from generally
accepted accounting principles.
Distributions - In December 1995, the Fund implemented a managed distribution
policy. Under the policy, the Fund declares and pays monthly dividends at an
annual rate of not less than $1.50 per share and is managed with a goal of
generating as much of the dividend as possible from ordinary income (net
investment income and short-term capital gains). The balance of the dividend
then comes from long-term capital gains (once a year) and, if necessary, a
return of capital. No dividends were designated as a return of capital for the
year ended November 30, 1997.
Borrowings - The Fund has entered into a Line of Credit Agreement with Societe
Generale for $25,000,000. A total of $120,000 was incurred in connection with
the start-up of the Line of Credit. These costs were deferred and are being
amortized ratably over a period of three years from the date of the first
borrowing (See Note 5).
Foreign Currency Transactions - Transactions denominated in foreign currencies
are recorded at the current prevailing exchange rates. The value of all assets
and liabilities denominated in foreign currencies are translated into U.S.
dollars at the exchange rate of such currencies against the U.S. dollar as of
3:00 PM EST. Transaction gains or losses resulting from changes in exchange
rates during the reporting period or upon settlement of the foreign currency
transaction are reported in operations for the current period. It is not
practical to isolate that portion of both realized and unrealized gains and
losses on investments in equity securities in the statement of operations that
result from fluctuations in foreign currency exchange rates. The Fund does
isolate that portion of gains and losses on investments in debt securities
which -- are due to changes in the foreign exchange rate from that which are
due to changes in market prices of debt securities. The Fund reports certain
foreign currency related transactions as components of realized gains for
financial reporting purposes, whereas such components are treated as ordinary
income (loss) for federal income tax purposes.
Other - Security transactions are recorded on the date the securities are
purchased or sold (trade date). Costs used in calculating realized gains and
losses on the sale of investment securities are those of the specific
securities sold. Dividend income is recorded on the ex-dividend date and
interest income is recorded on the accrual basis. Foreign dividends are also
recorded on the ex-dividend date or as soon after the ex-dividend date that
the Fund is aware of such dividends, net of all non-rebatable tax with-
holdings. Original issue discounts are accreted to interest income over the
lives of the respective securities. Withholding taxes on foreign dividends
have been provided for in accordance with the Fund's understanding of the
applicable country's tax rules and rates.
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 prior year information has been reclassified to conform with current
year presentation.
Use of Estimates - The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
2. Investment Management, Administration Agreements 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, 1997, the Fund had a liability for Investment
Management fees of $80,538.
The Fund has also entered into an Advisory Agreement with Delaware
International Advisers Ltd. (DIAL) (the "Subadviser"), an affiliate of DMC.
For the services provided to DMC, DMC pays the Subadviser 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 Princeton
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 0.15% of the Fund's adjusted average weekly net
assets.
For purposes of the calculation of investment management fees and
administration fees, adjusted average weekly net assets do not include the
Line of Credit liability.
Officers, directors and employees of DMC, who are also officers, directors and
employees of the Fund, do not receive any compensation from the Fund.
-------------------------------------------------------
<PAGE>
18 closed-end income
Notes to Financial Statements (Continued)
3. Investments
During the year ended November 30, 1997, the Fund made purchases of
$90,069,674 and sales of $91,336,993 of investment securities other than U.S.
government securities and temporary cash investments.
At November 30, 1997, the aggregate cost of securities and unrealized
appreciation (depreciation) for federal income tax purposes for the Fund was
as follows:
Cost of Investments .................................. $ 119,986,514
=============
Aggregate unrealized appreciation .................... $ 21,706,160
Aggregate unrealized depreciation .................... (4,160,066)
-------------
Net unrealized appreciation .......................... $ 17,546,094
=============
4. Capital Stock
There are 500,000,000 shares of $0.01 par value capital stock authorized.
The Fund did not repurchase any shares under the Share Repurchase Program
during the year ended November 30, 1997.
Shares issuable under the Fund's dividend reinvestment plan are purchased by
the Fund's transfer agent, IFTC, in the open market.
5. Line of Credit
In February 1996, the Fund entered into a Line of Credit Agreement with
Societe Generale for $25,000,000. At November 30, 1997, the par value of loans
outstanding was $25,000,000 at a variable interest rate of 6.375%. During the
year ended November 30, 1997, the average daily balance of loans outstanding
was $25,000,000 at a weighted average interest rate of approximately 6.26%.
The maximum amount of loans outstanding at any time during the period was
$25,000,000. The loan is collateralized by the Fund's portfolio.
6. Foreign Exchange Contracts
The Fund will generally enter into forward foreign currency contracts as a way
of managing foreign exchange rate risk. The Fund may enter into these
contracts to fix the U.S. dollar value of a security that it has agreed to buy
or sell for the period between the date the trade was entered into and the
date the security is delivered and paid for. The Fund may also use these
contracts to hedge the U.S. dollar value of securities it already owns
denominated in foreign currencies.
Forward foreign currency contracts are valued at the mean between the bid and
asked prices of the contracts and are marked-to-market daily. Interpolated
values are derived when the settlement date of the contract is an interim date
for which quotations are not available. The change in market value is recorded
by the Fund as an unrealized gain or loss. When the contract is closed, the
Fund records a realized gain or loss equal to the difference between the value
of the contract at the time it was opened and the value at the time it was
closed. The use of forward foreign currency contracts does not eliminate
fluctuations in the underlying prices of the Fund's securities, but it does
establish a rate of exchange that can be achieved in the future. Although
forward foreign currency contracts limit the risk of loss due to a decline in
the value of the hedged currency, they also limit any potential gain that
might result should the value of the currency increase. In addition, the Fund
could be exposed to risks if the counterparties to the contracts are unable to
meet the terms of their contracts. Foreign currency exchange contracts
outstanding as of November 30, 1997, were as follows:
Contracts In
to Exchange Settlement Net Unrealized
Deliver For Date Value Depreciation
_________ ___________ _________ ________ ____________
GBP 94,825 $159,343 12/4/97 $159,761 ($417)
HKD 142,925 $ 18,490 12/1/97 $ 18,489 ($ 1)
-----
($418)
=====
7. Market and Credit Risks
Some countries in which the Fund may invest require governmental approval for
the repatriation of investment income, capital or the proceeds of sales of
securities by foreign investors. In addition, if there is a deterioration in a
county's balance of payments or for other reasons, a country may impose
temporary restrictions on foreign capital remittances abroad.
The securities exchanges of certain foreign markets are substantially smaller,
less liquid and more volatile than the major securities markets in the United
States. Consequently, acquisition and disposition of securities by the Fund
may be inhibited. In addition, a significant proportion of the aggregate
market value of equity securities listed on the major securities exchanges in
emerging markets are held by a smaller number of investors. This may limit the
number of shares available for acquisition or disposition by the Fund.
The Fund may invest in high-yield fixed income securities which carry ratings
of BB or lower by S&P and/or Ba or lower by Moody's. Investments in these
higher yielding securities may be accompanied by a greater degree of credit
risk than higher rated securities. Additionally, lower rated securities may be
more susceptible to adverse economic and competitive industry conditions than
investment grade securities.
The Fund may invest up to 10% of its total assets in illiquid securities which
may include securities with contractual restrictions on resale, securities
exempt from registration under Rule 144A of the Securities Act of 1933, as
amended, and other securities which may not be readily marketable. The
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.
<PAGE>
closed-end income 19
Notes to Financial Statements (Continued)
8. Geographic Disclosure
As of November 30, 1997, the Fund's geographic diversification was as follows:
Percentage of
Total Securities
Country* Market Value at Value
-------- ------------ --------
United States ................ $96,013,508 69.81%
United Kingdom ............... 11,580,105 8.42
Australia .................... 4,598,921 3.34
New Zealand .................. 3,844,378 2.80
South Africa ................. 3,221,470 2.34
Spain ........................ 2,713,110 1.97
Germany ...................... 2,590,583 1.88
Canada ....................... 2,251,894 1.64
Turkey ....................... 2,226,323 1.62
Netherlands .................. 1,992,353 1.45
Greece ....................... 1,646,810 1.20
Mexico ....................... 1,538,105 1.12
France ....................... 1,496,860 1.09
Hong Kong .................... 796,768 0.58
Belgium ...................... 659,879 0.48
Finland ...................... 196,958 0.14
Indonesia .................... 164,583 0.12
------------ ------
Total ........................ $137,532,608 100.00%
------------ ------
____________
* Based on the currency in which each security is denominated.
Like any investment in securities, the value of the portfolio may be subject
to risk of loss from market, currency, economic and political factors which
occur in the countries where the Fund is invested.
9. Written Options
When the Fund writes an option, an amount equal to the premium received by the
Fund is recorded as a liability and is subsequently adjusted to the current
market value of the option written. Premiums received from writing options
that expire unexercised are treated by the Fund on the expiration date as
realized gains from investments. The difference between the premium and the
amount paid on effecting a closing purchase transaction, including brokerage
commissions, is also treated as a realized gain, or if the premium is less
than the amount paid for the closing purchase transaction, as a realized loss.
If a call option is exercised, the premium is added to the proceeds from the
sale of the underlying security or currency in determining whether the Fund
has realized a gain or loss. If a put option is exercised, the premium reduces
the cost basis of the securities purchased by the Fund. The Fund as writer of
an option bears the market risk of an unfavorable change in the price of the
security underlying the written option.
Transactions in options written during the year ended November 30, 1997, were
as follows:
Number of Premiums
Contracts Received
--------- --------
Options outstanding at November 30, 1996 ... 340 $67,440
Options exercised .......................... 340 67,440
---- -------
Options outstanding at November 30, 1997 ... -- $ --
---- -------
<PAGE>
Delaware Group Global Dividend & 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, 1997, and
the related statements of operations and cash flows for the year then
ended, the statements of changes in net assets for each of the two years in
the period then ended, and the financial highlights for each of the three
years in the period then ended 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 and financial highlights. Our procedures included
confirmation of securities owned as of November 30, 1997 by correspondence
with the custodian and brokers. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Delaware Group Global Dividend and Income Fund, Inc. at
November 30, 1997, the results of its operations and its cash flows for the
year then ended, the changes in its net assets for each of the two years in
the period then ended, and the financial highlights for each of the three
years in the period then ended and for the period March 4, 1994 (commencement
of operations) to November 30, 1994, in conformity with generally accepted
accounting principles.
Philadelphia, Pennsylvania
January 13, 1998
<PAGE>
20 closed-end income
Proxy Results (unaudited)
During the year ended November 30, 1997, The Delaware Group Global Dividend
and Income Fund shareholders voted on the following proposals at the annual
meeting of shareholders on July 15, 1997. The description of each proposal and
number of shares voted are as follows:
Shares Shares Voted
Voted Withheld
For Authority
--------- ------
1. To elect the Fund's Board of Directors:
Wayne A. Stork ......................... 4,673,354 53,692
Walter P. Babich ....................... 4,673,755 53,291
Anthony D. Knerr ....................... 4,674,807 52,239
Ann R. Leven ........................... 4,676,588 50,488
W. Thacher Longstreth .................. 4,675,295 51,751
Charles E. Peck ........................ 4,673,517 53,529
Thomas F. Madison ...................... 4,674,507 52,539
Jeffrey J. Nick ........................ 4,674,507 52,539
Shares Shares Shares
Voted Voted Voted
For Against Abstain
--------- ------ ------
2. To ratify the appointment of
Ernst & Young LLP as the
Fund's independent auditors ...... 4,654,140 12,564 60,342
Tax Information (unaudited)
Of the ordinary income distributions paid by the Fund during its taxable year
ended November 30, 1997, 17.71% qualifies for the dividends received deduction
for corporations. Additionally, the Fund distributed long-term capital gains
of $0.125 per share and $0.01169 per share to shareholders of record on December
31, 1996, and February 14, 1997, respectively.
<PAGE>
This annual report is for the information of Global Dividend and Income Fund
shareholders.
It sets forth details about charges, expenses, investment
objectives and operating policies of the Fund. You should read the prospectus
carefully before you invest. The return and principal value of an investment
in the Fund will fluctuate so that shares, when redeemed, may be worth more or
less than their original cost.
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.
Board of Directors
Wayne A. Stork
Chairman
Delaware Group of Funds
Philadelphia, PA
Jeffrey J. Nick
President and Chief Executive Officer
Delaware Group of Funds
Philadelphia, PA
Walter P. Babich+
Board Chairman, Citadel Constructors, Inc.
King of Prussia, PA
Anthony D. Knerr+
Consultant, Anthony Knerr & Associates
New York, NY
Ann R. Leven+
Treasurer, National Gallery of Art
Washington, DC
W. Thacher Longstreth
City Councilman
Philadelphia, PA
Thomas F. Madison*
President and Chief Executive Officer
MLM Partners, Inc.
Minneapolis, MN
*Appointed June 19, 1997
Charles E. Peck
Secretary/Treasurer, Enterprise Homes, Inc.
Fredericksburg, VA
+Audit Committee Member
Executive Officers
Wayne A. Stork
Chairman
Delaware Group of Funds
Philadelphia, PA
Jeffrey J. Nick
President and Chief Executive Officer
Delaware Group of Funds
Philadelphia, PA
Richard G. Unruh, Jr.
Executive Vice President
Philadelphia, PA
Paul E. Suckow
Senior Vice President/Chief Investment Officer, Fixed-Income
Philadelphia, PA
David K. Downes
Senior Vice President/
Chief Administrative Officer/
Chief Financial Officer
Philadelphia, PA
George M. Chamberlain, Jr.
Senior Vice President/
Secretary General Counsel
Philadelphia, PA
<PAGE>
Joseph H. Hastings
Senior Vice President/
Corporate Controller
Philadelphia, PA
Michael P. Bishof
Senior Vice President/Treasurer
Philadelphia, PAdirectors
& officers
Investment Manager
Delaware Management Company, Inc.
Philadelphia, Pennsylvania
International Affiliate
Delaware International Advisers Ltd.
London, England
Principal Office of the Fund
1818 Market Street
Philadelphia, PA 19103-3682
Independent Auditors
Ernst & Young LLP
2001 Market Street
Philadelphia, PA
<PAGE>
Registrar and Stock
Transfer Agent
Investors Fiduciary Trust Company
210 West 10th Street
Kansas City, MO 64105
1.800.596.8396
For Securities Dealers
1.800.362.7500
Financial Institutions Representatives Only
1.800.659.2265
Recordholders as of November 30, 1997: 294
Copy Rights Delaware Distributors, L.P.
DGF
Listed
NYSE
THE NEW YORK STOCK EXCHANGE
DELAWARE
GROUP
- --------
Philadelphia - London
Printed in the USA
on recycled paper
(418)
AR-DGF(11/97)TKO1/98
