<PAGE>
DELAWARE(SM)
INVESTMENTS
- ------------
Delaware Group Global Dividend and Income Fund
Closed-End
Income
1999 annual report
[Total Return Artwork]
<PAGE>
A TRADITION OF SOUND INVESTING SINCE 1929
Table of Contents
- -----------------
Letter to Shareholders 1
Portfolio Management
Review 3
Performance Summary 7
Financial Statements
Statement of Net Assets 8
Financial Highlights 15
A Commitment To Our Investors
Experienced
o Our seasoned investment professionals average more than 15 years' experience.
o For over 70 years, we have managed money in a variety of investment styles
that have weathered a full range of economic and market environments.
Disciplined
o We follow strict investment policies and clear buy/sell guidelines.
o We strive to balance risk and reward in order to provide relatively
conservative investment alternatives within any given asset class.
Consistent
o We believe consistent processes are the best way to seek consistent
investment performance.
o Our commitment to style consistency has earned us the confidence of
discriminating institutional and individual investors to manage approximately
$47 billion in assets as of December 31, 1999.
Funds are not FDIC insured and are not guaranteed. It is possible to lose the
principal amount invested.
(C)Delaware Distributors, L.P.
<PAGE>
Investment Objectives and Strategies
Delaware Group Global Dividend and Income Fund's Objective
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 portfolio managers' assessment
of each market's relative risks and rewards.
Global Common Stocks with Above-Average Yields
The Fund's management focuses on U.S. and foreign stocks that pay high dividends
relative to their share price. Such high yields 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 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. 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. 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, but provide a greater level of income to compensate
investors for the additional risks. Prices of high-yield bonds tend to 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 risks
that include a country's inflation outlook, economy, politics, different
accounting standards, tax policies and effect of currency fluctuations. The
value of a 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
About $25 million (27%) of your Fund's net assets were leveraged as of November
30, 1999. Leveraging is a tool that is generally not available to open-end
mutual funds and one that can be an important contributor to your Fund's income
and capital appreciation. Of course, there is no guarantee that the Fund will
achieve its objective by using leveraging. 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.
1
<PAGE>
Dear Shareholder
OVER THE LAST FISCAL YEAR, GLOBAL INVESTORS FOUND CAUSE FOR OPTIMISM AS
FINANCIAL TURBULENCE AROUND THE WORLD BEGAN TO STABILIZE. AROUND THE GLOBE, AS
IN THE UNITED STATES, LOWER INTEREST RATES HELPED TURN THE TIDE.
[Total Return Artwork]
- --------------------------------------------------------------------------------
December 7, 1999
Recap of Events -- Over the last fiscal year, global investors found cause for
optimism as financial turbulence around the world began to stabilize. Around the
globe, as in the United States, lower interest rates helped turn the tide.
Last December, at the start of your Fund's fiscal year, the central banks of 11
euro-zone nations cut rates to a uniform 3.0%. Many other nations abroad,
including the United Kingdom, New Zealand and countries in the Pacific Rim,
followed suit. Lower borrowing costs helped ease a credit crunch in world
markets, allowed businesses to expand and operate more profitably and reduced
concerns about global economic stability.
Emerging markets bounced back strongly from their disappointing 1998
performance. Brazil, in particular, demonstrated steady improvement after
devaluing its currency early in 1999, suggesting to us that the country may be
through the worst of its problems. Within Europe, we were cautious about the
prospects for the euro, and focused on the United Kingdom, for example, and very
select countries in Europe.
After months of weakness, the economies in eastern Asia appear to be
strengthening. Many corporations in the area have restructured and are operating
more efficiently. Governments have adopted pro-business policy changes that are
stimulating economic growth in the region.
Average Annual Total Return
At Net Asset Value for Periods Ended November 30, 1999
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
Premium (+) / Discount (-)
One Year Lifetime As of 11/30/99
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Delaware Group Global Dividend and Income
Fund (Est. 3/4/94) -0.57% +10.24% -15.58%
Standard & Poor's 500 Index +19.37% +20.87%
Merrill Lynch High-Yield Bond Index +1.07% +7.97%
Morgan Stanley Europe, Australia
and South East Asia (EASEA) Index +11.58% +15.22%
Salomon Brothers Non-U.S. World
Government Bond Index -2.30% +6.07%
Lipper Closed-End Income Funds Average -4.34% (11 funds) +8.04% (10 funds)
</TABLE>
All performance is at net asset value and assumes reinvestment of distributions.
The S&P 500 is an unmanaged composite of large company stocks. The Merrill Lynch
High-Yield Bond Index holds domestic and international high-yield bonds. The
Morgan Stanley Europe, Australia and South East Asia Index includes stocks in
Europe, Australia and South East Asia, excluding Japan. The Salomon Brothers
Non-U.S. World Government Bond Index holds non-U.S. fixed-income securities. The
Lipper Closed-End Income Fund Average represents a peer group of closed-end
mutual funds tracked by Lipper Analytical. Past performance does not guarantee
future results. You cannot invest directly in an index. The Premium/Discount
reflects the Fund's price per share relative to its net asset value. Source:
Bloomberg.
2
<PAGE>
[Total Return Artwork]
WE BELIEVE DELAWARE GROUP GLOBAL DIVIDEND AND INCOME FUND IS POSITIONED TO
BENEFIT IF INTEREST IN UNDERVALUED INVESTMENTS GROWS AGAIN.
- --------------------------------------------------------------------------------
The improved economic environment in Asia and around the globe pushed the Dow
Jones Industrial Average to new all-time highs of both 10,000 and 11,000 in the
spring and summer of 1999. This did, however, heighten inflationary concerns.
The Federal Reserve responded by raising interest rates on June 30th, August
24th and November 16th. As of this writing, the Federal funds target rate on
overnight loans between banks stands at 5.50%. These three increases took back
the three reductions made in the fall of 1998 in response to the global
financial crisis and returned the rate to its level of 14 months ago.
Delaware Group Global Dividend and Income Fund provided a slightly negative
total return of -0.57% for the one year ended November 30, 1999. Although this
return was not consistent with your Fund's lifetime average of +10.24%, it did
outpace the return of its peers, represented by the Lipper Closed-End Income
Funds Average. In spite of the brightening global economic landscape, "value"
investments, stocks or bonds that appear to be selling for less than their true
worth, took a back seat to more expensive "growth" investments, mirroring what
we've seen in the U.S. This is a key reason why Delaware Global Dividend and
Income Fund, which has a strong value approach, provided a negative total
return.
Market Outlook -- Investor bias toward growth companies began to shift in the
spring of 1999, supported by the remarkable performance of cyclical stocks,
long-overlooked investments that are often a staple of value funds.
Unfortunately, this bias towards value investments was short-lived and did not
carry through the remainder of 1999. We believe Delaware Group Global Dividend
and Income Fund is positioned to benefit if interest in undervalued investments
grows again. We believe our disciplined and consistent approach to global
investing provides valuable portfolio diversification and attractive wealth
building opportunities. With many opportunities still ahead, we look forward to
working with you to make the most of your investments. Thank you for your
continued confidence in Delaware Investments.
Sincerely,
/s/ Wayne A. Stork /s/ David K. Downes
- ------------------------------------ --------------------------------------
Wayne A. Stork David K. Downes
Chairman, President and Chief Executive Officer,
Delaware Investments Family of Funds Delaware Investments Family of Funds
3
<PAGE>
PORTFOLIO MANAGEMENT REVIEW
- ---------------------------
Your Fund Managers
Joanna Bates
Senior Portfolio Manager
Foreign Fixed Income
Delaware Investment Advisers
Michael Dugan
Senior Portfolio Manager
U.S. Equities
Delaware Management Company
Clive A. Gilmore
Senior Portfolio Manager
Foreign Equities
Delaware Investment Advisers
Paul A. Matlack
Senior Portfolio Manager
U.S. Fixed Income
Delaware Management Company
Christopher A. Moth
Senior Portfolio Manager
Foreign Fixed Income
Delaware Investment Advisers
[Total Return Artwork]
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The Fund's Results
Delaware Group Global Dividend and Income Fund provided a disappointing total
return of -0.57% for the one-year period ended November 30, 1999 (shares at net
asset value with distributions reinvested). Although your Fund's return was
negative for this period, it did outperform a peer group of closed-end funds
with similar investment objectives, tracked by Lipper Analytical Services. One
of the key reasons for our underperformance was the preference for growth over
value investment styles in domestic and international markets. Since we employ a
value approach in your portfolio, your Fund lagged its benchmarks in
performance.
Portfolio Highlights
U.S. Stocks
As of December 31, 1999, Delaware Group Global Dividend and Income Fund's
allocation to U.S. common stocks was 42.9% of adjusted net assets. Our strategy
has been to position the Fund in economically sensitive or cyclical stocks that
might benefit from continued U.S. economic growth. We benefited from our
holdings in basic industry and energy, while REITs, health care and financial
services were laggards.
Basic Industry: Chemical and metal companies have performed extremely well since
investors got a glimpse of first quarter 1999 economic and earnings data.
Individual companies that contributed positively to the Fund's performance
during the year included: DuPont, the leading chemical firm, and ALCOA, the
world's premier aluminum manufacturer.
Energy: A continuing rise in oil prices began in January 1999. Our holdings of
Chevron delivered our best returns in the sector.
REITs: Despite their attractive yield and low valuations, REIT stocks continued
to lose ground through the end of your Fund's fiscal year. Investors originally
soured on REITS in mid-1998 over concerns of paired-share REIT legislation,
overbuilding and a widespread lack of interest in conservative, income-oriented
investments. Overall, we continue to stay the course in REITs primarily to take
advantage of strong dividend yields and sound fundamentals.
Health Care: We believe this area became overvalued in the growth stock mania of
this past fiscal year and then eventually declined significantly. Unfortunately,
our global pharmaceutical holdings stumbled with their peers in fiscal 1999. We
are, however, optimistic about this sector's recovery in fiscal 2000.
Financial Services: The overriding fear of higher interest rates hurt financial
stocks in the spring of 1999. Historically, banks have been less successful at
generating earnings in a rising rate environment. Consequently, our holdings in
this sector largely suffered.
4
<PAGE>
[Total Return Artwork]
Delaware Group
Global Dividend and Income Fund's
Asset Mix
November 30, 1999
South Africa 5.4%
New Zealand 3.4%
Germany 2.9%
Other Assets & Cash 21.5%
[Graphic Omitted]
United States 55.6%
United Kingdom 7.8%
Australia 3.4%
- --------------------------------------------------------------------------------
Foreign Stocks
In terms of foreign stocks, we invest primarily in developed countries,
concentrating on Western Europe and select Pacific Rim nations that meet the
Fund's income and value standards. Value stocks are those that appear to be
selling for less than their true worth, and have strong prospects for future
growth.
The United Kingdom remained the Fund's largest country allocation overseas. We
think the U.K. is currently undervalued and will show significantly more promise
in the first half of fiscal 2000. In general, we have been reducing positions in
Continental Europe, while emphasizing selected European markets that we believe
offer the potential for long-term reward.
We also invested heavily in companies from Australia and New Zealand, which
benefited from growing investor interest in commodity-based stocks. Our
investments in Australia and New Zealand provided substantial gains for the
Fund.
We have historically kept your Fund's investments in Japanese stocks to a
minimum. We continue to believe that many Japanese stocks are overpriced. Over
the last year, faster-than-expected economic growth signaled an improving
outlook for the Japanese economy and helped generate stronger investment
returns. Nevertheless, we still view the Japanese market as overvalued and
expect the economic recovery in the country to be slow and difficult.
Higher oil prices resulted from rising demand from the recovering world markets
and from the intervention of OPEC, an intergovernmental organization that works
to bring stability to the petroleum market. This helped support higher prices
for the Fund's holdings of ELF Acquitaine, a French company that produces,
refines and distributes oil. Stronger global demand for commodities also
benefited the Fund's holdings of CSR, a diversified Australian company producing
a wide range of products including building materials and aluminum.
High Yield Bonds
U.S. high-yield bonds have been gradually recovering from a lack of demand that
pushed prices lower early in your Fund's fiscal year. At that time, U.S.
Treasuries led fixed-income performance as investors fled riskier investments in
stocks and non-government bonds for the safety and liquidity of Treasuries.
Once, however, it seemed that global economic troubles were contained, investor
sentiment slowly shifted back in favor of high-yield corporate bonds.
Rising Treasury bond yields since January 1999 have caused the yield difference
between U.S. Treasury bonds and high-yield bonds to narrow. Typically, the
larger the difference, the more attractive high-yield bonds appear to investors.
The
5
<PAGE>
International Diversification
Your Reinvestment Options
If your shares are not held in "street" name and you are not already reinvesting
dividends, Delaware Group 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 EquiServe at 1.800.426.5523. You will be asked
to submit your request in writing. If you have shares registered in "street"
name, contact the broker/dealer holding the shares or your financial adviser.
[Total Retrun Artwork]
- --------------------------------------------------------------------------------
smaller the difference, the less willing investors are to take on the added risk
of high-yield bonds. Consequently, for the majority of the past ten months,
demand for high-yield bonds has not kept pace with the high volume of new
supply. High yield bond prices subsequently declined and this downturn helped
contribute slightly to your Fund's negative return during the fiscal year.
For the most part, our U.S. high-yield bond holdings generated enough income to
make up for price declines. We continue to focus our selection on bonds rated BB
and B, in the high-yield bond credit quality range.
Foreign Bonds
Foreign bond investors faced a difficult environment as international bond
markets took a back seat to international equities this past year. In Europe,
progress toward currency union over the past two years originally helped bond
performance in countries with historically weak currencies and higher than
average inflation like Italy and Spain. However, since the euro was introduced
in January, the value of the new currency depreciated over 11.2% as of November
30, 1999 (Source: Bloomberg). We did not hold bonds in any euro-denominated
markets during the past year because of this. This proved to be a sound strategy
in light of the euro's constant weakness. Still, we believe the euro is now
significantly undervalued. For this reason, we may shift some of our holdings
into European bonds going forward.
As we did in the first half of fiscal 1999, we continued to take advantage of
the generous yields available in South Africa, Greece and Poland, whose
currencies were at attractive valuations and provided encouraging positive
returns. During the summer, we added a position in Turkey and sold some of our
South American debt. This provided positive returns for your Fund over the
course of its fiscal year.
Outlook
For the first half of fiscal 2000, we may slightly increase Delaware Group
Global Dividend and Income Fund's U.S. stock allocation, with an emphasis on
cyclical stocks -- including aluminum, paper, metals, capital-spending related
companies and energy companies. We believe these companies may benefit the most
from improving worldwide economic growth.
We think that Delaware Group Global Dividend and Income Fund, which invests in a
combination of U.S. and foreign stocks and bonds, continues to offer the
potential for attractive long-term total return. We are hopeful that the events
of this past spring and summer signal a more prolonged period of improving
performance for value-oriented styles of investing like the one we follow for
the Delaware Group Global Dividend and Income Fund.
6
<PAGE>
Delaware Group Global Dividend and Income Fund
Fund Basics
- -----------
Fund Objective
Seeks to achieve current income and secondarily, capital appreciation.
Assets Under Management
$92.6 million
Number of Holdings
161
Fund Start Date
March 4, 1994
NYSE Symbol
DGF
- --------------------------------------------------------------------------------
FUND PERFORMANCE
- ----------------
Growth of a $10,000 Investment
March 4, 1994 - November 30, 1999
<TABLE>
<CAPTION>
Mar-94 Nov-94 Nov-95 Nov-96 Nov-97 Nov-98 Nov-99
<S> <C> <C> <C> <C> <C> <C> <C>
Lipper Closed-End Income Fund Average (10 funds) at Market Value $10,000 $9,060 $11,694 $13,431 $15,346 $16,697 $14,232
Delaware Group Global Dividend and Income Fund at Market Value $10,000 $8,285 $10,748 $13,696 $16,296 $16,630 $13,803
Lipper Closed-End Income Fund Average (10 funds) at Net Asset Value $10,000 $9,184 $11,641 $13,136 $15,259 $16,370 $15,616
Delaware Group Global Dividend and Income Fund at Net Asset Value $10,000 $8,288 $10,767 $13,740 $16,396 $16,770 $13,949
</TABLE>
Chart assumes $10,000 invested on March 4, 1994 and reinvestment of
distributions at market value. Performance of the Fund and the index at market
value are based on market performance during the period. Performance of the Fund
and the index at net asset value are based on the fluctuations in net asset
value during the period. Delaware Group Global Dividend and Income Fund was
initially offered with a sales charge of 6.0%. Performance since inception does
not include fees or any brokerage commissions for purchases made since
inception. Investments in the Fund are not available at net asset value. The
Lipper Closed-End Income Fund Average represents a peer group of closed-end
mutual funds tracked by Lipper Analytical. Past performance does not guarantee
future results. You cannot invest directly in an index or average.
Your Fund's Buyback Program
Your Fund's board of directors approved a share repurchase program in 1994 that
authorized Delaware Group Global Dividend and Income Fund's lead manager to
purchase up to 10% of the Fund's outstanding shares on the floor of the New York
Stock Exchange. Through November 30, 1999 we did not make use of this option
since we did not see this as the most effective way to add value to the
portfolio.
7
<PAGE>
Statement of Net Assets
DELAWARE GROUP GLOBAL DIVIDEND AND INCOME FUND, INC.
Number Market
November 30, 1999 of Shares Value
- --------------------------------------------------------------------------------
Common Stock - 68.13%
Aerospace & Defense - 0.47%
Lockheed Martin ....................................... 22,000 $ 437,250
----------
437,250
----------
Automobiles & Automotive Parts - 4.03%
Continental ........................................... 26,000 513,906
Dana .................................................. 23,000 638,250
Ford Motor ............................................ 18,000 909,000
General Motors ........................................ 11,000 792,000
GKN ................................................... 56,000 879,990
----------
3,733,146
----------
Banking, Finance & Insurance - 9.03%
Bayerische Verelnsbank ................................ 7,800 484,540
Block (H&R) ........................................... 11,000 473,000
Financial Security Assurance
Holdings Limited ................................... 18,853 995,674
First Union ........................................... 17,200 665,425
ING Groep NV .......................................... 16,507 929,706
KeyCorp ............................................... 26,000 702,000
Mellon Bank ........................................... 21,000 765,188
National Australia Bank ............................... 75,430 1,090,282
National City ......................................... 25,000 623,438
Sanlam Limited ........................................ 303,000 354,595
St. Paul .............................................. 25,000 754,688
Summit Bancorp ........................................ 16,000 522,000
----------
8,360,536
----------
Buildings & Materials - 1.37%
Blue Circle. .......................................... 77,922 449,597
Compagnie de Saint-Gobain ............................. 3,200 545,370
Wharf (Holdings) Limited .............................. 107,000 271,395
----------
1,266,362
----------
Chemicals - 2.28%
Bayer ................................................. 20,750 875,725
Dow Chemical .......................................... 8,000 937,000
Orica ................................................. 56,800 295,705
----------
2,108,430
----------
Computers & Technology - 0.90%
Pitney Bowes .......................................... 10,000 479,375
Xerox ................................................. 13,000 351,813
----------
831,188
----------
Consumer Products - 1.16%
Siemens ............................................... 10,750 1,075,411
----------
1,075,411
----------
Electronics & Electrical Equipment - 2.97%
Eaton ................................................. 14,000 1,084,125
Rockwell International ................................ 17,000 843,625
Thomas & Betts ........................................ 20,000 820,000
----------
2,747,750
----------
<PAGE>
Number Market
of Shares Value
- --------------------------------------------------------------------------------
Common Stock (Continued)
Energy - 4.53%
Chevron ............................................... 14,000 $1,239,875
Conoco Class B ........................................ 21,000 549,938
RWE ................................................... 11,000 419,314
Royal Dutch Petroleum ................................. 16,200 954,564
Sasol Ltd. ............................................ 23,700 179,726
Texaco ................................................ 14,000 853,125
----------
4,196,542
----------
Food, Beverage & Tobacco - 5.05%
Bass .................................................. 48,214 542,879
Foster's Brewing Group ................................ 329,542 884,878
Goodman Fielder Limited ............................... 970,000 870,883
Heinz (H.J.) .......................................... 14,000 586,250
Philip Morris Companies ............................... 20,000 526,250
RJ Reynolds Tobacco Holdings .......................... 29,000 618,062
RJR Nabisco Holdings .................................. 24,000 277,500
Unigate ............................................... 77,000 370,385
----------
4,677,087
----------
Healthcare & Pharmaceuticals - 1.28%
Glaxo Wellcome ........................................ 39,370 1,182,546
LTC Healthcare ........................................ 1,612 2,317
----------
1,184,863
----------
Industrial Machinery - 1.94%
Caterpillar ........................................... 11,000 510,125
Deere & Co. ........................................... 30,000 1,288,125
----------
1,798,250
----------
Metals & Mining - 2.56%
Alcan Aluminum ........................................ 30,000 1,020,000
Rio Tinto ............................................. 33,000 648,669
Duke Realty Investments ............................... 38,000 703,000
----------
2,371,669
----------
Packaging & Containers - 1.52%
Amcor Limited ......................................... 170,100 739,549
Crown Cork & Seal ..................................... 33,000 672,375
----------
1,411,924
----------
Paper & Forest Products - 2.42%
Carter Holt Harvey .................................... 200,000 242,784
Georgia-Pacific Timber Group .......................... 38,300 950,319
International Paper ................................... 20,000 1,043,750
----------
2,236,853
----------
Real Estate - 14.13%
Apartment Investment & Management ..................... 19,700 732,594
Camden Property Trust ................................. 10,000 267,500
Capital Automotive .................................... 6,500 88,359
Corporate Office Properties ........................... 30,700 237,925
Duke Energy ........................................... 30,000 1,520,625
Equity Office Properties Trust ........................ 25,000 548,438
Essex Property Trust .................................. 13,000 421,688
Franchise Finance ..................................... 40,000 890,000
8
<PAGE>
Statement of Net Assets (Continued)
Number Market
of Shares Value
- --------------------------------------------------------------------------------
Common Stock (Continued)
Real Estate (Continued)
General Growth Properties ............................. 15,100 $ 452,056
Grove Property Trust .................................. 50,000 650,000
JDN Realty ............................................ 43,500 715,031
Liberty Property Trust ................................ 31,142 710,427
Macerich .............................................. 36,000 715,500
MeriStar Hospitality .................................. 50,272 779,216
Pan Pacific Retail Properties ......................... 33,800 574,600
Philips International Realty .......................... 30,000 491,250
Prentiss Properties Trust ............................. 43,508 881,037
Public Storage ........................................ 32,000 730,000
Reckson Associates Realty ............................. 34,000 686,375
Spieker Properties .................................... 11,100 388,500
Sun Communities ....................................... 20,000 607,500
----------
13,088,621
----------
Retail - 0.72%
Boots ................................................. 65,000 663,271
----------
663,271
----------
Telecommunications - 2.93%
Cable & Wireless ...................................... 88,000 1,123,866
GTE ................................................... 10,700 781,100
Telecom Corporation of New Zealand .................... 189,000 807,827
----------
2,712,793
----------
Transportation & Shipping - 1.41%
British Airways ....................................... 93,000 557,791
Norfolk Southern ...................................... 35,000 748,125
----------
1,305,916
----------
Utilities - 7.43%
BG .................................................... 131,494 694,028
Electrabel ............................................ 1,689 539,597
Hong Kong Electric Holdings ........................... 200,000 630,882
Iberdrola ............................................. 56,000 781,589
PowerGen .............................................. 82,300 714,754
Scottish Power ........................................ 26,100 911,869
Southern .............................................. 25,000 584,375
Telefonica de Espana .................................. 72,932 1,520,979
United Utilities ...................................... 53,000 501,404
----------
6,879,477
----------
Total Common Stock
(cost $60,353,077) ................................. 63,087,339
----------
Convertible Preferred Stock - 5.84%
Banking, Finance & Insurance - 0.79%
Sovereign Capital Trust II 7.50% ...................... 13,000 728,000
----------
728,000
----------
Buildings & Materials - 0.61%
Ingersoll Rand 6.75% "PRIDES" ......................... 24,000 561,000
----------
561,000
----------
<PAGE>
Number Market
of Shares Value
- --------------------------------------------------------------------------------
Convertible Preferred Stock (Continued)
Cable, Media & Publishing - 0.60%
Metromedia Intl Group 7.25% ........................... 14,600 $ 553,431
----------
553,431
----------
Paper & Forest Products - 1.04%
Georgia-Pacific Units 7.50% ........................... 22,500 963,281
----------
963,281
----------
Metals & Mining - 0.13%
Rouge Steel 7.25% ..................................... 14,800 118,400
----------
118,400
----------
Real Estate - 1.15%
General Growth Properties 7.25% ....................... 18,700 391,531
SL Green Realty 8.00% ................................. 30,000 671,250
----------
1,062,781
----------
Transportation & Shipping - 1.52%
Greyhound Lines 8.50% ................................. 26,500 883,245
Union Pacific Cap Trust 6.25% "TIDES" ................. 12,000 534,000
----------
1,417,245
----------
Total Convertible Preferred Stock
(cost $5,671,288) .................................. 5,404,138
----------
Preferred Stock - 0.73%
Granite Broadcasting 12.75% ........................... 6,925 678,670
----------
Total Preferred Stock
(cost $616,866) .................................... 678,670
----------
Principal
Amount++
---------
Non-Convertible Bonds - 36.61%
Banking and Finance - 1.76%
Banco Nacional de Comercia Exterior
unsec deb 7.25% 2004 ............................ US$ 750,000 701,850
Bank of Greece Series RG unsec deb
(loan stock) 10.75% 2010 .......................... GBP 120,000 248,512
National Bank of Hungary sr deb
10.00% 2003 ....................................... GBP 400,000 682,720
----------
1,633,082
----------
Buildings & Materials - 0.99%
American Standard sr notes
7.375% 2008 ....................................... US$1,000,000 920,000
----------
920,000
----------
Cable, Media & Publishing - 1.06%
Charter Communications 8.63% 2009 .................... US$ 500,000 474,375
Granite Broadcasting sr sub notes
9.375% 2005 ....................................... US$ 500,000 503,750
----------
978,125
----------
Chemicals - 0.25%
BPC Holding Series B sr sec notes
12.50% 2006 ...................................... US$ 250,000 230,625
----------
230,625
----------
9
<PAGE>
Statement of Net Assets (Continued)
Principal Market
Amount++ Value
- --------------------------------------------------------------------------------
Non-Convertible Bonds (Continued)
Computers & Technology - 0.13%
Unisys sr unsec notes 11.75% 2004 ............... US$ 105,000 $ 116,025
-----------
116,025
-----------
Consumer Products - 1.04%
American Safety Razor Series B
sr notes 9.875% 2005 .......................... US$ 475,000 479,750
Fedders North America sr sub notes
9.375% 2007 ................................... US$ 250,000 241,875
Fisher Scientific International
9.00% 2008 .................................... US$ 250,000 237,500
-----------
959,125
-----------
Food, Beverage & Tobacco - 0.54%
Core - Mark International
sr sub notes 11.375% 2003 ..................... US$ 500,000 500,000
-----------
500,000
-----------
Foreign Government - 21.32%
Argentina Global Bond 9.75% 2027 ................ US$ 369,000 311,270
Hellenic Republic 8.60% 2008 .................... GRD250,000,000 858,273
Hellenic Republic 8.70% 2005 .................... GRD350,000,000 1,167,758
Hellenic Republic 9.20% 2002 .................... GRD100,000,000 318,765
Hydro-Quebec (loan stock)
12.75% 2015 ................................... GBP 160,000 425,681
New Zealand Government
8.00% 2001 .................................... NZD 2,000,000 1,044,011
New Zealand Government
8.00% 2004 .................................... NZD 3,400,000 1,805,982
*Poland Global par bond
3.00% 2024 (a) ................................ US$ 2,000,000 1,251,200
Poland Government Bond 12.00% 2003 .............. PLZ 5,500,000 1,266,200
Republic of Argentina Series
sr unsec unsub 11.00% 2006 .................... US$ 1,500,000 1,440,000
*Republic of Brazil - IDU Series A
deb 6.75% 2001 ................................ US$ 184,500 181,271
Republic of Columbia
unsec unsub 7.625% 2007 ....................... US$ 1,000,000 806,900
Republic of Korea unsub notes
8.875% 2008 ................................... US$ 1,000,000 1,061,300
Republic of South Africa Series 162
12.50% 2002 ................................... ZAR 14,000,000 2,244,333
Republic of South Africa Series 177
9.50% 2007 .................................... ZAR 13,000,000 1,642,579
Republic of South Africa Series 153
13.00% 2010 ................................... ZAR 11,000,000 1,652,524
Republic of Turkey unsec deb
9.00% 2003 .................................... GBP 400,000 582,054
Russian Ministry of Finance
unsec unsub 9.25% 2001 ....................... US$ 500,000 371,900
United Mexican States Global
Bonds 8.25% 2009 ............................. US$ 2,500,000 1,303,532
-----------
19,735,533
-----------
<PAGE>
Principal Market
Amount++ Value
- --------------------------------------------------------------------------------
Non-Convertible Bonds (Continued)
Healthcare & Pharmaceuticals - 0.34%
Healthsouth sr sub notes
9.50% 2001 .................................... US$ 200,000 $ 196,500
Paracelsus Healthcare sr unsec sub
notes 10.00% 2006 ............................. US$ 200,000 122,000
-----------
318,500
-----------
Leisure, Lodging & Entertainment - 1.45%
AFC Enterprises sr sub notes
10.25% 2007 ................................... US$ 250,000 250,625
Hollywood Casino sr sec notes
11.25% 2007 ................................... US$ 500,000 517,500
Scott's Hospitality Series A
unsec deb 10.95% 2001 ......................... CAD 800,000 571,828
-----------
1,339,953
-----------
Metals & Mining - 0.94%
Weirton Steel sr notes
11.375% 2004 .................................. US$ 950,000 869,250
-----------
869,250
-----------
Packaging & Containers - 0.42%
Container Corporation of America
Series A sr notes 11.25% 2004 ................. US$ 200,000 209,000
Pierce Leahy sr sub notes
9.13% 2008 .................................... US$ 200,000 183,750
-----------
392,750
-----------
Paper & Forest Products - 0.88%
Domtar deb 10.85% 2017 ........................... CAD1,000,000 819,375
-----------
819,375
-----------
Retail - 1.92%
ASDA Group unsec unsub deb
10.875% 2010 .................................. GBP 250,000 522,884
Fleming Companies sr notes
10.625% 2001 .................................. US$ 400,000 405,000
Provigo Series 1991 deb
11.25% 2001 ................................... CAD 800,000 578,646
Wilsons Leather sr unsec notes
11.25% 2004 ................................... US$ 275,000 275,000
-----------
1,781,530
-----------
Textiles - 0.54%
GFSI Series B sr unsec sub notes
9.625% 2007 ................................... US$ 200,000 152,000
Synthetic Industries Series B sr sub
notes 9.25% 2007 .............................. US$ 325,000 351,000
-----------
503,000
-----------
Transportation & Shipping - 0.95%
Atlantic Express sr sec notes
10.75% 2004 .................................. US$ 300,000 291,000
Worldwide Flight 12.25% 2007 .................... US$ 600,000 588,000
-----------
879,000
-----------
10
<PAGE>
Statement of Net Assets (Continued)
Principal Market
Amount++ Value
- --------------------------------------------------------------------------------
Non-Convertible Bonds
(Continued)
Utilities - 1.94%
AES sr unsec sub notes
10.25% 2006 ......................... US$ 400,000 $ 406,000
Korea Electric unsub notes
6.375% 2003 ......................... US$ 1,000,000 949,700
Midland Funding II Series A deb
11.75% 2005 ......................... US$ 400,000 437,000
-----------
1,792,700
-----------
Miscellaneous - 0.14%
Larouche Industries sr sub notes
9.50% 2007 .......................... US$ 500,000 130,000
-----------
130,000
-----------
Total Non-Convertible Bonds
(cost $36,334,699) .................. 33,898,573
-----------
Convertible Bonds - 2.93%
Automobiles & Automotive Equipment - 0.72%
Mascotech sub debt 4.50% 2003 .......... US$ 900,000 669,375
-----------
669,375
-----------
Banking, Finance & Insurance - 0.43%
Bell Atlantic Financial sr unsec
deb 5.75% 2003 ...................... US$ 400,000 398,000
-----------
398,000
-----------
Cable, Media & Publishing - 1.11%
Clear Channel Communications
1.50% 2002 .......................... US$ 1,030,000 1,024,850
-----------
1,024,850
-----------
Real Estate - 0.67%
IRT Property sub deb 7.30% 2003 ........ US$ 500,000 465,625
LTC Properties 8.50% 2001 .............. US$ 250,000 156,250
-----------
621,875
Total Convertible Bonds
(cost $2,956,055) ................... 2,714,100
-----------
Short-Term Securities - 7.93%
Turkish Treasury Bill 0.00%
due 06/07/00 ........................ TRL1,700,000,000,000 2,342,634
**U.S. Treasury Bills 4.70%
due 12/23/99 ........................ US$ 5,015,000 5,001,667
-----------
Total Short-Term Securities
(cost $7,967,918) ................... 7,344,301
-----------
<PAGE>
Total Market Value Of Securities - 122.17%
(cost $113,899,903) ....................................... $113,127,121
Liabilities Net of Receivables and
Other Assets - (22.17%)+ .................................. (20,526,246)
-----------
Net Assets Applicable to 6,650,647 Shares
($0.01 par value) Outstanding; Equivalent to
$13.92 Per Share - 100.00% ................................ $92,600,875
-----------
- --------------
IDU - "Interest Due and Unpaid" Bond
PRIDES - Preferred Redeemable Increased Dividend Securities
TIDES - Term Income Deferrable Equity Securities
deb - debentures
sec - secured
sr - senior
sub - subordinated
unsec - unsecured
unsub - unsubordinated
* 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.
** U.S. Treasury Bills are traded on a discount basis; the interest rate shown
is the effective yield at the time of purchase by the Fund.
(a) Coupon will increase periodically based upon a predetermined schedule.
Stated interest rate is the rate in effect at November 30, 1999.
+ Of this amount, $25,000,000 represents borrowings under the Fund's Line of
Credit. See Note 5 in "Notes to Financial Statements."
++ Principal amount is stated in the currency in which each bond is
denominated.
CAD - Canadian dollar
GBP - British pound
GRD - Greek drachma
NZD - New Zealand dollar
PLZ - Polish Zlotty
TRL - Turkish Lira
US$ - U.S. dollar
ZAR - South African rand
Components Of Net Assets At November 30, 1999:
Common stock, $0.01 par value, 500,000,000 shares
authorized to the Fund ....................................... $93,096,054
Accumulated net realized gain on investments,
foreign currencies and options written ....................... 287,138
Net unrealized depreciation of investments,
foreign currencies and options written ....................... (782,317)
------------
Total net assets ................................................ $92,600,875
------------
See accompanying notes
11
<PAGE>
Statement of Operations
DELAWARE GROUP GLOBAL DIVIDEND AND INCOME FUND, INC.
Year Ended November 30, 1999
- --------------------------------------------------------------------------------
Investment Income
Interest (net of foreign taxes withheld of $11,347) ...$5,519,950
Dividends (net of foreign taxes withheld of $73,485) .. 3,376,518 $ 8,896,468
---------- -----------
Expenses:
Management fees ....................................... 881,549
Accounting and administration fees .................... 100,000
Professional fees ..................................... 80,711
Reports to shareholders ............................... 61,950
Transfer agent fees ................................... 24,600
Custodian fees ........................................ 20,516
Taxes (other than taxes on income) .................... 12,402
Directors' fees ....................................... 8,646
Amortization of organization expenses ................. 13,970
Other ................................................. 55,982
----------
Total operating expenses (before interest expense) .... 1,260,326
Interest expense ...................................... 1,444,857
-----------
Total operating expenses (after interest expense) ..... 2,705,183
Less expenses paid indirectly ......................... (2,521)
-----------
Total expenses ........................................ 2,702,662
-----------
Net Investment Income ................................. 6,193,806
-----------
Net Realized and Unrealized Gain (Loss) on Investments,
Foreign Currencies, and Options Written:
Net realized gain (loss) on:
Investment transactions ............................ 4,100,169
Options written .................................... 36,135
Foreign currencies ................................. (461,755)
-----------
Net realized gain ..................................... 3,674,549
Net change in unrealized appreciation/depreciation
of investments, foreign currencies, and options
written ............................................ (10,773,534)
-----------
Net Realized And Unrealized Loss On Investments,
Foreign Currencies, and Options Written ............ (7,098,985)
-----------
Net Decrease In Net Assets Resulting From Operations .. $(905,179)
-----------
See accompanying notes
12
<PAGE>
Statements of Changes in Net Assets
DELAWARE GROUP GLOBAL DIVIDEND AND INCOME FUND, INC.
Year Ended Year Ended
11/30/99 11/30/98
- --------------------------------------------------------------------------------
Operations:
Net investment income ............................... $6,193,806 $ 7,238,500
Net realized gain on investments,foreign
currencies and options written ................... 3,674,549 2,903,134
Net change in unrealized appreciation/depreciation
of investments, foreign currencies and options
written .......................................... (10,773,534) (7,548,958)
----------- ------------
Net increase (decrease) in net assets resulting
from operations ................................... (905,179) 2,592,676
----------- ------------
Dividends and Distributions to Shareholders From:
Net investment income ............................... (5,732,051) (5,813,835)
Net realized gain on investments .................... (5,207,792) (6,017,460)
----------- ------------
.................................................... (10,939,843) (11,831,295)
----------- ------------
Net Decrease In Net Assets .......................... (11,845,022) (9,238,619)
Net Assets:
Beginning of year ................................... 104,445,897 113,684,516
----------- ------------
End of year ......................................... $92,600,875 $104,445,897
----------- ------------
See accompanying notes
13
<PAGE>
Statements of Cash Flows
DELAWARE GROUP GLOBAL DIVIDEND AND INCOME FUND, INC.
Year Ended November 30, 1999
- --------------------------------------------------------------------------------
Net Cash (Including Foreign Currency) Provided by
Operating Activities:
Net decrease in net assets resulting from operations ............ $ (905,179)
------------
Adjustments to reconcile net decrease in net assets
from operations to cash provided by operating activities:
Amortization of organizational expenses ..................... 13,790
Amortization of discount on securities ...................... (1,438,395)
Net proceeds from investment transactions ................... 13,279,515
Net realized gain on investments ............................ (4,136,304)
Net realized foreign exchange losses ........................ 461,755
Net change in unrealized depreciation of investments
and foreign currencies .................................... 10,773,534
Decrease in receivable for investments sold ................. 653,651
Decrease in interest and dividends receivable ............... 445,358
Decrease in payable for investments purchased ............... (5,744,589)
Increase in interest payable ................................ 38,360
Decrease in accrued expenses and other liabilities .......... (262,576)
------------
Total adjustments ........................................... 14,084,099
------------
Net cash provided by operating activities ....................... 13,178,920
------------
Cash flows used for financing activities:
Proceeds from line of credit (Note 5) ........................ 25,000,000
Principal repayment on line of credit (Note 5) ............... (25,000,000)
Cash dividends paid .......................................... (10,939,843)
------------
Net cash used for financing activities .......................... (10,939,843)
------------
Effect of exchange rates on cash ................................ (142,442)
------------
Net increase in cash ............................................ 2,096,635
Cash at beginning of year ....................................... 742,036
------------
Cash at end of year ............................................. $ 2,838,671
------------
Cash paid for interest .......................................... $ 1,406,497
------------
See accompanying notes
14
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Selected data for each share of the Fund outstanding
throughout each year was as follows: Delaware Group Global Dividend And Income Fund, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
11/30/99 11/30/98 11/30/97 11/30/96 11/30/95
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year ......................... $15.70 $17.09 $15.81 $14.06 $13.09
Income (loss) from investment operations:
Net investment income ................................... 0.93 1.09 1.00 0.98 1.14
Net realized and unrealized gain (loss) on
investments, foreign currencies and options written ... (1.07) (0.70) 1.78 2.27 1.15
------ ------ ------ ------ ------
Total from investment operations ........................ (0.14) 0.39 2.78 3.25 2.29
------ ------ ------ ------ ------
Less dividends and distributions:
Dividends from net investment income .................... (0.86) (1.38) (0.95) (1.02) (1.32)
Distributions from net realized gains on investments .... (0.78) (0.40) (0.55) (0.48) --
------ ------ ------ ------ ------
Total dividends and distributions ....................... (1.64) (1.78) (1.50) (1.50) (1.32)
------ ------ ------ ------ ------
Net asset value, end of year ............................... $13.92 $15.70 $17.09 $15.81 $14.06
------ ------ ------ ------ ------
Market value, end of year .................................. $11.75 $15.88 $17.31 $15.88 $13.75
------ ------ ------ ------ ------
Total return based on:1
Market value ............................................ (17.00%) 2.05% 18.98% 27.42% 29.74%
------ ------ ------ ------ ------
Net asset value ......................................... (0.57%) 2.19% 17.93% 24.10% 19.08%
------ ------ ------ ------ ------
Ratios and supplemental data:
Net assets, end of year (000 omitted) ................... $92,601 $104,446 $113,685 $105,120 $93,500
Ratio of total operating expenses to average net assets . 2.69% 2.69% 2.67% 2.61% 1.13%
Ratio of total operating expenses to adjusted average
net assets (before interest expense)(2) ............... 1.00% 1.03% 1.02% 1.09% N/A
Ratio of interest expense to adjusted average net
assets(2) ............................................. 1.15% 1.16% 1.16% 1.06% N/A
Ratio of net investment income to average net assets .... 6.14% 6.63% 6.03% 6.80% 8.39%
Ratio of net investment income to adjusted average net
assets(2) ............................................. 4.92% 5.38% 4.93% 5.59% N/A
Portfolio turnover ...................................... 58% 51% 68% 88% 101%
Leverage analysis:
Debt outstanding at end of year (000 omitted) ........... $25,000 $25,000 $25,000 $25,000 N/A
Average daily balance of debt outstanding
(000 omitted) ......................................... $25,000 $25,000 $25,000 $20,355 N/A
Average daily balance of shares outstanding
(000 omitted) ......................................... 6,651 6,651 6,651 6,651 N/A
Average debt per share .................................. $3.76 $3.76 $3.76 $3.06 N/A
</TABLE>
- ----------------
(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 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.
(2) Adjusted net assets excludes debt outstanding.
See accompanying notes
15
<PAGE>
Notes To Financial Statements
DELAWARE GROUP GLOBAL DIVIDEND AND INCOME FUND, INC.
November 30, 1999
- -------------------------------------------------------------------------------
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, 1999.
Borrowings - A total of $120,000 was incurred in connection with the start-up of
the Line of Credit in 1996. These costs were deferred and amortized ratably over
a period of three years from the date of the first borrowing.
Foreign Currency Transactions - Transactions denominated in foreign currencies
are recorded at the current prevailing exchange rates. The value of all assets
<PAGE>
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.
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.
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 withholdings. Original issue
discounts are accreted to interest income over the lives of the respective
securities. Withholding taxes on foreign dividends have been provided for in
accordance with the Fund's understanding of the applicable country's tax rules
and rates.
Certain expenses of the Fund are paid through "soft dollar" arrangements with
brokers. These transactions are done subject to the best price and execution.
The amount of these expenses was approximately $2,521 for the year ended
November 30, 1999. The Fund may receive earnings credits from its custodian when
positive cash balances are maintained, which are used to offset custody fees.
There were no earnings credits for the year ended November 30, 1999. The
expenses paid under the above arrangements are included in their respective
expense captions on the Statement of Operations with the corresponding expense
offset shown as "expenses paid indirectly."
Organization Costs - A total of $124,000 was incurred in connection with the
organization of the Fund. These costs were deferred and amortized ratably over a
five year period from the date the Fund commenced operations.
16
<PAGE>
Notes to Financial Statements (Continued)
- -------------------------------------------------------------------------------
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 (DMC), the Investment Manager of the Fund, an
annual fee which is calculated daily at the rate of 0.70% of the adjusted
average daily net assets. At November 30, 1999, the Fund had a liability for
Investment Management fees and other expenses payable to DMC of $70,198.
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 engaged Delaware Service Company, Inc. (DSC), an affiliate of DMC,
to provide accounting and administration services. The Fund pays DSC a monthly
fee computed at the annual rate of 0.05% of the Fund's adjusted average daily
net assets subject to an annual minimum fee of $100,000. At November 30, 1999,
the Fund had a liability for such fees and other expenses payable to DSC of
$9,596.
For purposes of the calculation of investment management fees and accounting and
administration fees, adjusted average daily net assets does not include the Line
of Credit liability.
Officers, directors and employees of DMC and DSC, who are also officers,
directors and employees of the Fund, do not receive any compensation from the
Fund.
3. Investments
During the year ended November 30, 1999, the Fund made purchases of $68,744,513
and sales of $83,254,932 of investment securities other than U.S. government
securities and temporary cash investments.
At November 30, 1999, the aggregate cost of securities and unrealized
appreciation (depreciation) for federal income tax purposes for the Fund were as
follows:
Cost of Investments $113,980,194
------------
Aggregate unrealized appreciation $10,421,154
Aggregate unrealized depreciation (11,274,227)
------------
Net unrealized depreciation $(853,073)
------------
<PAGE>
4. Capital Stock
The Fund did not repurchase any shares under the Share Repurchase Program during
the year ended November 30, 1999.
Shares issuable under the Fund's dividend reinvestment plan are purchased by the
Fund's transfer agent, Boston Equi-service, in the open market.
5. Line of Credit
Effective January 29, 1999, the Fund had entered into a Line of Credit Agreement
with Chase Manhattan Bank for $25,000,000. Prior to January 29, 1999, the Fund
had a Line of Credit Agreement with Societe Generale. At November 30, 1999, the
par value of loans outstanding was $25,000,000 at a variable interest rate of
6.70%. During the year ended November 30, 1999, the average daily balance of
loans outstanding was $25,000,000 at a weighted average interest rate of
approximately 5.72%. The maximum amount of loans outstanding at any time during
the year 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 and
forward foreign cross currency contracts as a way of managing foreign exchange
rate risk. A 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. A
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 and forward foreign cross 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.
17
<PAGE>
Notes to Financial Statements (Continued)
- -------------------------------------------------------------------------------
6. Foreign Exchange Contracts (Continued)
The following forward foreign currency contracts and forward foreign cross
currency contracts were outstanding at November 30, 1999:
Contracts In Net Unrealized
To Exchange Settlement Appreciation
Receive For Date (Depreciation)
- --------- -------- ---------- ---------------
EUR 2,457,080 GBP 1,560,000 2/29/00 ($1,640)
$ 277,087 EUR 273,958 12/1/99 814
7. Options Written
During the year ended November 30, 1999, the Fund entered into options contracts
in accordance with its investment objectives. When the Fund writes an option, a
premium is received and a liability is recorded and adjusted on a daily basis to
reflect 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 received and the amount paid on effecting a closing purchase
transaction, including brokerage commissions, is treated as a realized gain or
loss. If a call option is exercised, the premium is added to the proceeds from
the sale of the underlying security 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, 1999 for the
Fund were as follows:
Number Premiums
Of Contracts Received
------------ ---------
Options outstanding at
November 30, 1998 ........................ 0 $ --
Options written .............................. 594 81,109
Options terminated in closing
purchase transaction ...................... (247) (34,814)
Options expired .............................. (100) (7,825)
----- --------
Options written outstanding at
November 30, 1999 ........................ 247 $38,470
----- --------
<PAGE>
The following written options were outstanding at November 30, 1999:
Number of Exercise Expiration Net
Description Contracts Price Date Appreciation
- ------------- --------- -------- ------------- ------------
GTE Call Option ... 107 $ 80 December 1999 $11,716
Chevron Call
Option .......... 140 $100 December 1999 $21,454
8. Credit and Market 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
country's balance of payments or for other reasons, a country may impose
temporary restrictions on foreign capital remittances abroad.
The securities exchanges of certain foreign markets are substantially smaller,
less liquid and more volatile than the major securities markets in the United
States. Consequently, acquisition and disposition of securities by the Fund may
be inhibited. In addition, a significant portion 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.
18
<PAGE>
Notes to Financial Statements (Continued)
- -------------------------------------------------------------------------------
9. Geographic Disclosure
As of November 30, 1999, the Fund's geographic diversification* was as follows:
United States ............................... $ 62,946,324.00 55.64%
United Kingdom .............................. 8,852,064.00 7.82%
Australia ................................... 3,881,296.00 3.43%
South Africa ................................ 6,073,757.00 5.37%
New Zealand ................................. 3,900,604.00 3.45%
Greece ...................................... 2,593,308.00 2.29%
Germany ..................................... 3,368,895.00 2.98%
Poland ...................................... 2,517,400.00 2.23%
Netherlands ................................. 1,884,270.00 1.67%
Turkey ...................................... 2,924,687.00 2.59%
Canada ...................................... 2,395,530.00 2.12%
South Korea ................................. 2,011,000.00 1.78%
Spain ....................................... 2,302,568.00 2.04%
Mexico ...................................... 2,005,382.00 1.77%
Argentina ................................... 1,440,000.00 1.27%
France ...................................... 545,370.00 0.48%
Hong Kong ................................... 902,278.00 0.80%
Colombia .................................... 806,900.00 0.71%
Belgium ..................................... 539,597.00 0.48%
Russia ...................................... 371,900.00 0.33%
Brazil ...................................... 181,271.00 0.16%
Hungary ..................................... 682,720.00 0.60%
--------------- ------
Total ....................................... $113,127,121.00 100.00%
--------------- ------
- --------------------------
* 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 or loss from market, currency, economic and political factors which occur
in the countries where the Fund is invested.
<PAGE>
10. Tax Information (unaudited)
The information set forth below is for the Fund's fiscal year as required by
federal laws. Shareholders, however, must report distributions on a calendar
year basis for income tax purposes, which may include distributions for portions
of two fiscal years of a fund. Accordingly, the information needed by
shareholders for income tax purposes will be sent to them in early 2000. Please
consult your tax advisor for proper treatment of this information.
For the fiscal year ended November 30, 1999, the Fund designated as long-term
capital gains and ordinary income distributions paid during the year as follows:
(A) (B) (C) (D)
Long-Term Ordinary
Capital Gains Income Total
Distributions Distributions Distribution Qualifying
(Tax Basis) (Tax Basis) (Tax Basis) Dividends(1)
- ------------- ------------- ------------ ------------
22% 78% 100% 31%
- --------------------------
* Items (A) and (B) are based on a percentage of the Fund total distributions.
** Item (D) is based on a percentage of ordinary income of the Fund.
(1) Qualifying dividends represent dividends which qualify for the corporate
dividends received deduction.
11. Year 2000 (unaudited)
As with other mutual funds, financial and business organizations and individuals
around the world, the Fund could be adversely affected if the computer systems
used by its service providers do not properly process and calculate date-related
information from and after January 1, 2000. This is commonly known as the "Year
2000 Problem." The Fund has taken steps to obtain satisfactory assurances that
its major service providers have taken steps reasonably designed to address the
Year 2000 Problem on the computer systems that the service providers use.
However, there can be no assurance that these steps will be sufficient to avoid
any adverse impact on the business of the Fund. Consistent with the investment
process utilized for the selection of securities for the Fund, the portfolio
managers focus solely on the quantitative characteristics of the equity
securities in which the Fund invests. This process assumes that the effect of
the Year 2000 problem on each company is already reflected in those
characteristics. Accordingly, except for surveying the widely reported
information regarding the companies in which the Fund invests, no additional
Year 2000 due diligence is performed. However, there can be no guarantees that,
even with these efforts, they will be able to predict the effect of Year 2000 on
any company or the performance of its securities.
19
<PAGE>
Report of Independent Auditors
DELAWARE GROUP GLOBAL DIVIDEND AND INCOME FUND, INC.
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. (the "Fund") as of November 30, 1999, 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 five years in the period
then ended. 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, 1999, 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, 1999, 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 its financial highlights for each of the five years in the period then
ended, in conformity with generally accepted accounting principles.
/s/ Ernst & Young LLP
---------------------
Ernst & Young LLP
Philadelphia, Pennsylvania
January 7, 2000
Proxy Results (Unaudited)
- -------------------------------------------------------------------------------
During the year ended November 30, 1999, The Delaware Group Global Dividend and
Income Fund shareholders voted on the following proposals at the annual meeting
of shareholders on September 16, 1999. The description of each proposal and
number of shares voted are as follows.
1. To elect the Fund's Board of Directors:
Shares Shares Voted
Voted For Withheld Authority
--------- ------------------
Wayne A. Stork ............................ 6,238,237 204,328
Dave K. Downes ............................ 6,238,237 204,328
Walter P. Babich .......................... 6,236,878 205,687
John H. Durham ............................ 6,238,597 203,968
Anthony D. Knerr .......................... 6,237,997 204,568
Ann R. Leven .............................. 6,238,597 203,968
Thomas F. Madison ......................... 6,237,997 204,568
Charles E. Peck ........................... 6,236,878 205,687
Janet L. Yeomans .......................... 6,238,597 203,968
2. To ratify the selection of Ernst & young LLP, as independent auditors for the
Company.
For Against Abstain
---------- ------- -------
6,286,617 91,407 64,541
20
<PAGE>
DELAWARE INVESTMENTS FAMILY OF FUNDS
Complete information on any fund offered by Delaware Investments can be found in
each fund's current prospectus. Prospectuses for all funds offered by Delaware
Investments are available from your financial adviser. Please read the
prospectus carefully before you invest or send money.
[GRAPHIC OMITTED: BUILDING BLOCKS OF A DIVERSIFIED PORTFOLIO "HOUSE"]
GROWTH OF CAPITAL
Aggressive Growth Equity Funds
Growth Equity Funds
o Select Growth Fund
o Trend Fund
o DelCap Fund
o Small Cap Value Fund
o U.S. Growth Fund
o Growth Stock Fund
o Tax-Efficient Equity Fund
o Social Awareness Fund
TOTAL RETURN
Moderate Growth Equity Funds
o Blue Chip Fund
o Devon Fund
o Growth and Income Fund
o Decatur Equity Income Fund
o REIT Fund
o Balanced Fund
INTERNATIONAL AND GLOBAL
International and Global Funds
o Emerging Markets Fund
o New Pacific Fund
o Overseas Equity Fund
o International Equity Fund
o Global Equity Fund
o Global Bond Fund
CURRENT INCOME
Taxable Bond Funds
o Delchester Fund
o High-Yield Opportunities Fund
o Strategic Income Fund
o Corporate Bond Fund
o Extended Duration Bond Fund
o American Government Bond Fund
<PAGE>
o U.S. Government Securities Fund
o Limited-Term Government Fund
TAX-EXEMPT INCOME
Tax-Exempt Bond Funds
o National High Yield Municipal Bond Fund
o Tax-Free USA Fund
o Tax-Free Insured Fund
o Tax-Free USA Intermediate Fund
o State Tax-Free Funds*
STABILITY OF PRINCIPAL
Stability of Principal
o Cash Reserve
o Tax-Free Money Fund
ASSET ALLOCATION
Asset Allocation Funds
(varying levels of income and growth potential)
o Foundation Funds
Growth Portfolio
Balanced Portfolio
Income Portfolio
* Available for the following states: Arizona, California, Colorado, Florida,
Idaho, Iowa, Kansas, Minnesota, Missouri, Montana, North Dakota, New Jersey,
New Mexico, New York, Ohio, Oregon, Pennsylvania and Wisconsin. Insured and
Intermediate Funds are available in selected states.
<PAGE>
DELAWARE(SM) DGF
INVESTMENTS Listed
=========== NYSE
Philadelphia o London THE NEW YORK STOCK EXCHANGE
Registrar and Stock Transfer Agent
EquiServe
P.O. Box 8040
Boston, MA 02266-8040
1.800.426.5523
For Securities Dealers
1.800.362.7500
For Financial Institutions
Representatives Only
1.800.659.2265
www.delawareinvestments.com
This annual report is for the information of Delaware Group Global Dividend and
Income Fund shareholders. It sets forth details about charges, expenses,
investment objectives and operating policies of each Fund. You should read it
carefully before you invest. The return and principal value of an investment in
the Fund will fluctuate so that shares, when resold, 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 from time to time purchase shares of its Common Stock on
the open market at market prices.
- -------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
BOARD OF DIRECTORS Charles E. Peck Joseph H. Hastings
Retired Senior Vice President/Corporate Controller
Wayne A. Stork Fredericksburg, VA Philadelphia, PA
Chairman
Delaware Investments Family of Funds Jan L. Yeomans Michael P. Bishof
Philadelphia, PA Vice President and Treasurer Senior Vice President/Treasurer
3M Corporation Philadelphia, PA
Walter P. Babich+ St. Paul, Minnesota
Board Chairman, Citadel Constructors, Inc. Lisa Brinkley
King of Prussia, PA EXECUTIVE OFFICERS Senior Vice President/Compliance Director
Philadelphia, PA
David K. Downes David K. Downes
President and Chief Executive Officer President/Chief Executive Officer Investment Manager
Delaware Investments Family of Funds Philadelphia, PA Delaware Management Company
Philadelphia, PA Philadelphia, Pennsylvania
Richard J. Flannery
John H. Durham Executive Vice President/General Counsel International Affiliate
Private Investor Philadelphia, PA Delaware International Advisers Ltd.
Horsham, PA London, England
H. Thomas McMeekin
Anthony D. Knerr+ Executive Vice President/Chief Principal Office of the Fund
Consultant, Anthony Knerr & Associates Investment Officer, Fixed Income 1818 Market Street
New York, NY Philadelphia, PA Philadelphia, PA 19103-3682
Ann R. Leven+ Eric E. Miller Independent Auditors
Former Treasurer, National Gallery of Art Senior Vice President/Secretary Ernst & Young LLP
Washington, DC Philadelphia, PA 2001 Market Street
Philadelphia, PA
Thomas F. Madison Richard G. Unruh, Jr.
President and Chief Executive Officer Executive Vice President/
MLM Partners, Inc. Chief Investment Officer, Equity
Minneapolis, MN Philadelphia, PA
+Audit Committee Member
Printed in the USA
(2539) (J5449)
AR-DGF [11/99] PPL1/00 Recordholders as of November 30, 1999: 287
</TABLE>
