UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number: 811-8246
Exact name of registrant as specified in charter:
Delaware Investments Global Dividend and Income Fund, Inc.
Address of principal executive offices:
2005 Market Street
Philadelphia, PA 19103
Name and address of agent for service:
Richelle S. Maestro, Esq.
2005 Market Street
Philadelphia, PA 19103
Registrant's telephone number, including area code: (800) 523-1918
Date of fiscal year end: 11/30
Date of reporting period: 5/31
Item 1. Reports to Stockholders
Delaware
Investments(SM)
--------------------------------------
CLOSED-END A member of Lincoln Financial Group(R)
Semiannual Report 2003
- --------------------------------------------------------------------------------
DELAWARE INVESTMENTS GLOBAL
DIVIDEND AND INCOME FUND, INC.
[Graphic Omitted: Logo] POWERED BY RESEARCH.(SM)
Table
OF CONTENTS
- ---------------------------------------------------
FINANCIAL STATEMENTS:
Statement of Net Assets 1
Statement of Operations 8
Statements of Changes in Net Assets 9
Statement of Cash Flows 9
Financial Highlights 10
Notes to Financial Statements 11
- ---------------------------------------------------
Funds are not FDIC insured and are not guaranteed. It is possible to lose the
principal amount invested.
Mutual fund advisory services provided by Delaware Management Company, a series
of Delaware Management Business Trust, which is a registered investment advisor.
(C)2003 Delaware Distributors, L.P.
Statement Delaware Investments Global Dividend and Income Fund, Inc.
OF NET ASSETS May 31, 2003 (Unaudited)
Number of Market
Shares Value (U.S.$)
- --------------------------------------------------------------------------------
Common Stock - 60.43%
- --------------------------------------------------------------------------------
Aerospace & Defense - 0.69%
Raytheon 14,500 $ 464,580
----------
464,580
----------
Automobiles & Automotive Parts - 0.82%
General Motors 10,200 360,366
GKN 56,000 186,998
----------
547,364
----------
Banking, Finance & Insurance - 10.79%
Aviva 40,981 298,544
Banco Santander Central Hispano 39,771 318,412
Bank of America 8,300 615,860
Bayerische Hypo Vereinsbank 13,011 178,279
Friedman Billings Ramsey Group 25,940 345,002
HBOS 38,912 453,220
ING Groep NV 21,489 344,079
IntesaBci 173,225 550,906
J.P. Morgan Chase 17,900 588,194
Lloyds TSB Group 51,257 374,511
Mellon Financial 20,700 562,419
Morgan Stanley & Co. 15,800 722,850
National Australia Bank 23,285 504,870
Sanlam 243,434 198,134
Societe Generale - Class A 7,479 456,240
Wells Fargo 15,100 729,329
----------
7,240,849
----------
Building & Materials - 1.30%
Compagnie de Saint Gobain 12,800 485,319
CSR 45,172 54,752
Rinker Group 12,746 38,207
Wharf Holdings 153,000 295,171
----------
873,449
----------
Chemicals - 2.81%
Air Products & Chemicals 11,000 479,490
Bayer 16,433 335,395
Dow Chemical 25,500 810,900
Orica 39,363 257,763
----------
1,883,548
----------
Computers & Technology - 1.48%
International Business Machines 5,100 449,004
Pitney Bowes 14,100 541,581
----------
990,585
----------
Consumer Products - 1.35%
Kimberly-Clark 10,000 519,300
Procter & Gamble 4,200 385,644
----------
904,944
----------
Electronics & Electrical Equipment - 1.77%
Canon 6,000 255,490
Emerson Electric 10,000 523,000
Hong Kong Electric 103,000 410,745
----------
1,189,235
----------
Number of Market
Shares Value (U.S.$)
- --------------------------------------------------------------------------------
Common Stock (continued)
- --------------------------------------------------------------------------------
Energy - 3.50%
ChevronTexaco 8,300 $ 588,803
ConocoPhillips 9,821 530,039
Kerr-McGee 11,600 551,928
Royal Dutch Petroleum 9,230 420,384
Sasol 22,137 260,125
----------
2,351,279
----------
Food, Beverage & Tobacco - 4.73%
Foster's Group 178,521 499,404
*General Mills 14,300 668,954
Heinz (H.J.) 22,000 727,540
Kellogg 14,500 510,400
++Mitchells & Butlers 41,125 142,166
PepsiCo 14,200 627,640
----------
3,176,104
----------
Healthcare & Pharmaceuticals - 5.13%
Abbott Laboratories 12,500 556,875
Biomet 15,900 437,250
Bristol-Myers Squibb 22,200 568,320
Eisai Co. 9,700 202,249
GlaxoSmithKline 24,406 486,895
Merck & Co. 10,400 578,032
Wyeth 14,000 613,900
----------
3,443,521
----------
Industrial Machinery - 1.13%
Brambles Industries 71,495 185,624
*Caterpillar 11,000 573,650
----------
759,274
----------
Investment Companies - 0.83%
*Gladstone Capital 29,200 560,348
----------
560,348
----------
Leisure, Lodging & Entertainment - 0.43%
++Intercontinental Hotels 41,125 291,238
----------
291,238
----------
Metals & Mining - 0.56%
Rio Tinto 18,880 373,648
----------
373,648
----------
Paper & Forest Products - 2.11%
Amcor 78,646 422,555
Carter Holt Harvey 18,731 17,213
International Paper 16,400 601,388
*Weyerhaeuser 7,500 377,850
----------
1,419,006
----------
Real Estate - 9.97%
AMB Property 18,300 501,603
Apartment Investment & Management 14,500 510,835
Camden Property Trust 10,000 347,400
Duke Realty 26,000 737,879
Liberty Property Trust 21,042 700,067
1
Statement Delaware Investments Global Dividend
OF NET ASSETS (CONTINUED) and Income Fund, Inc.
Number of Market
Shares Value (U.S.$)
- --------------------------------------------------------------------------------
Common Stock (continued)
- --------------------------------------------------------------------------------
Common Stock (continued)
Real Estate (continued)
*Macerich 18,000 $ 621,000
Pan Pacific Retail Properties 17,600 691,504
Prentiss Properties Trust 21,308 614,949
Ramco-Gershenson Properties 18,400 430,376
*Reckson Associates Realty 28,100 569,025
*Simon Property Group 8,000 300,960
Starwood Hotels & Resorts Worldwide 17,000 492,660
Sun Communities 4,400 173,404
-----------
6,691,662
-----------
Retail - 2.28%
Boots Group 55,874 564,581
Coles Myer 91,055 398,668
GUS 52,478 540,649
*++Kmart Holdings 1,602 25,472
-----------
1,529,370
-----------
Telecommunications - 3.65%
*BellSouth 12,000 318,120
Cable & Wireless 50,300 84,057
Telecom Corporation of New Zealand 189,000 579,830
++Telefonica 45,877 519,832
Telstra 153,982 454,217
Verizon Communications 13,054 494,094
-----------
2,450,150
-----------
Transportation & Shipping - 1.57%
++British Airways 93,000 214,958
Union Pacific 10,000 609,900
West Japan Railway 63 227,479
-----------
1,052,337
-----------
Utilities - 3.53%
BG Group 113,689 506,004
Dominion Resources 8,900 560,701
Electrabel 1,237 314,861
Endesa 5,134 82,359
Iberdrola 29,226 510,800
RWE 13,740 398,351
-----------
2,373,076
-----------
Total Common Stock
(cost $40,220,885) 40,565,567
-----------
- --------------------------------------------------------------------------------
Convertible Preferred Stock - 5.77%
- --------------------------------------------------------------------------------
Aerospace & Defense - 0.57%
*Northrop Grumman 7.25% 3,850 384,808
-----------
384,808
-----------
Banking, Finance & Insurance - 2.13%
*Sovereign Bancorp 7.50% 13,000 1,131,000
Travelers Property Casualty 4.50% 12,000 299,400
-----------
1,430,400
-----------
Number of Market
Shares Value (U.S.$)
- --------------------------------------------------------------------------------
Convertible Preferred Stock (continued)
- --------------------------------------------------------------------------------
Environmental Services - 0.35%
Allied Waste Industries 6.25% 4,000 $ 236,000
----------
236,000
----------
Real Estate - 2.11%
General Growth Properties 7.25% 38,700 1,416,033
----------
1,416,033
----------
Transportation & Shipping - 0.61%
+Union Pacific Capital Trust
TIDES 144A 6.25% 7,891 408,359
----------
408,359
----------
Total Convertible Preferred Stock
(cost $2,828,250) 3,875,600
----------
- --------------------------------------------------------------------------------
Preferred Stock - 2.17%
- --------------------------------------------------------------------------------
Cable, Media & Publishing - 0.12%
*CSC Holdings 11.75% 800 83,800
----------
83,800
----------
Metals & Mining - 0.01%
++Weirton Steel 8,550 4,361
----------
4,361
----------
Real Estate - 1.42%
LaSalle Hotel Properties 10.25% 23,500 646,285
Ramco-Gershenson Properties 9.50% 11,500 307,510
----------
953,795
----------
Utilities - 0.62%
Public Service Enterprise Group 10.25% 6,800 413,100
----------
413,100
----------
Total Preferred Stock (cost $1,344,610) 1,455,056
----------
Principal
Amount**
- --------------------------------------------------------------------------------
Convertible Bonds - 4.81%
- --------------------------------------------------------------------------------
Automobiles & Automotive Parts - 1.30%
MascoTech 4.50% 12/15/03 USD 900,000 868,499
----------
868,499
----------
Computers & Technology - 0.41%
+Mercury Interactive 144A 4.75% 7/1/07 275,000 275,688
----------
275,688
----------
Energy - 0.31%
Duke Energy 1.75% 5/15/23 200,000 209,000
----------
209,000
----------
Leisure, Lodging & Entertainment - 0.20%
+Regal Entertainment
144A 3.75% 5/15/08 130,000 136,175
----------
136,175
----------
2
Statement Delaware Investments Global Dividend
OF NET ASSETS (CONTINUED) and Income Fund, Inc.
Principal Market
Amount** Value (U.S.$)
- --------------------------------------------------------------------------------
Convertible Bonds (continued)
- --------------------------------------------------------------------------------
Miscellaneous - 0.16%
*+Tyco International Group
144A 2.75% 1/15/18 USD 100,000 $ 107,375
----------
107,375
----------
Retail - 0.99%
+Gap 144A 5.75% 3/15/09 500,000 665,000
----------
665,000
----------
Telecommunications - 0.30%
+Nextel Partners 144A 1.50% 11/15/08 200,000 203,500
----------
203,500
----------
Transportation & Shipping - 0.80%
Continental Airlines 4.50% 2/1/07 750,000 537,188
----------
537,188
----------
Utilities - 0.34%
+Centerpoint Energy 144A 3.75% 5/15/23 200,000 227,000
----------
227,000
----------
Total Convertible Bonds (cost $3,094,913) 3,229,425
----------
- --------------------------------------------------------------------------------
Non-Convertible Bonds - 14.68%
- --------------------------------------------------------------------------------
Automobiles & Automotive Parts - 0.18%
+Advanced Accessory Systems
144A 10.75% 6/15/11 40,000 41,000
CSK Auto 12.00% 6/15/06 70,000 77,350
----------
118,350
----------
Banking, Finance & Insurance - 0.56%
Athena Nuerosciences Finance
7.25% 2/21/08 85,000 68,851
+Bluewater Finance 144A 10.25% 2/15/12 30,000 30,450
+Crum & Forster 144A 10.375% 6/15/13 40,000 39,100
+Farmers Exchange Capital
144A 7.20% 7/15/48 30,000 24,284
+Farmers Insurance Exchange
144A 8.625% 5/1/24 15,000 13,838
Finova Group 7.50% 11/15/09 130,000 53,625
+Gemstone Investor 144A 7.71% 10/31/04 45,000 44,100
+Interline Brands 144A 11.50% 5/15/11 35,000 36,050
Tig Holdings 8.125% 4/15/05 55,000 51,975
+Zurich Capital Trust I 144A
8.376% 6/1/37 15,000 16,445
----------
378,718
----------
Building & Materials - 0.63%
*Foster Wheeler 6.75% 11/15/05 105,000 75,075
*K Hovnanian Enterprises 7.75% 5/15/13 55,000 56,238
+Lone Star Industries
144A 8.85% 6/15/05 60,000 59,100
Schuler Homes 10.50% 7/15/11 55,000 61,875
Standard Pacific 9.25% 4/15/12 55,000 59,400
Technical Olympic USA 10.375% 7/1/12 60,000 63,000
*United States Steel 9.75% 5/15/10 50,000 49,750
----------
424,438
----------
Principal Market
Amount** Value (U.S.$)
- --------------------------------------------------------------------------------
Non-Convertible Bonds (continued)
- --------------------------------------------------------------------------------
Cable, Media & Publishing - 2.23%
American Media Operation
10.25% 5/1/09 USD 55,000 $ 59,813
Charter Communications
*10.75% 10/1/09 205,000 150,674
#13.50% 1/15/11 330,000 160,049
CSC Holdings 10.50% 5/15/16 135,000 150,862
*Dex Media East LLC 12.125% 11/15/12 95,000 111,624
+DirecTV Holdings 144A 8.375% 3/15/13 55,000 61,188
Echostar DBS 10.375% 10/1/07 90,000 99,788
+Hollinger 144A 11.875% 3/1/11 45,000 47,475
+Lamar Media 144A 7.25% 1/1/13 35,000 36,281
*Lodgenet Entertainment 10.25% 12/15/06 85,000 86,700
Mediacom Broadband 11.00% 7/15/13 70,000 77,350
Nextmedia Operating 10.75% 7/1/11 75,000 82,500
PanAmSat 8.50% 2/1/12 45,000 48,375
+PEI Holdings 144A 11.00% 3/15/10 45,000 49,275
+RH Donnelley Finance 144A
10.875% 12/15/12 30,000 34,125
Vertis
10.875% 6/15/09 85,000 82,450
+144A 9.75% 4/1/09 45,000 46,238
+Vivendi Universal 144A 9.25% 4/15/10 40,000 45,650
#XM Satellite Radio 14.00% 12/31/09 95,000 69,113
----------
1,499,530
----------
Chemicals - 0.93%
*+Huntsman International
144A 9.875% 3/1/09 100,000 102,500
IMC Global
6.55% 1/15/05 25,000 25,000
7.625% 11/1/05 70,000 71,050
*Lyondell Chemical 9.50% 12/15/08 45,000 43,313
MacDermid 9.125% 7/15/11 60,000 66,900
+Omnova Solutions 144A 11.25% 6/1/10 105,000 109,725
+Polyone Corporate 144A
10.625% 5/15/10 35,000 33,425
*+Rhodia SA 144A 8.875% 6/1/11 65,000 65,650
SOI Funding 11.25% 7/15/09 55,000 45,375
*Solutia 6.72% 10/15/37 85,000 62,475
----------
625,413
----------
Computers & Technology - 0.06%
+Amkor Technologies 144A
7.75% 5/15/13 25,000 23,844
Asat Finance 12.50% 11/1/06 22,750 18,314
----------
42,158
----------
Consumer Products - 0.65%
*American Greetings 11.75% 7/15/08 110,000 128,013
+Jafra Cosmetics 144A 10.75% 5/15/11 75,000 76,875
+Levi Strauss 144A 12.25% 12/15/12 55,000 46,200
+Phillips Van Heusen 144A 8.125% 5/1/13 35,000 36,050
*Salton 12.25% 4/15/08 95,000 89,775
Samsonite 10.75% 6/15/08 55,000 55,275
Venture Holdings Trust 12.00% 6/1/09 95,000 1,900
----------
434,088
----------
3
Statement Delaware Investments Global Dividend
OF NET ASSETS (CONTINUED) and Income Fund, Inc.
Principal Market
Amount** Value (U.S.$)
- --------------------------------------------------------------------------------
Non-Convertible Bonds (continued)
- --------------------------------------------------------------------------------
Consumer Services - 0.27%
Alderwoods Group 12.25% 1/2/09 USD 80,000 $ 83,600
+Brickman Group 144A 11.75% 12/15/09 30,000 33,525
Corrections Corporate 7.50% 5/1/11 65,000 66,788
----------
183,913
----------
Electronics & Electrical Equipment - 0.23%
+Sanmina - SCI Corp
144A 10.375% 1/15/10 140,000 156,100
----------
156,100
----------
Energy - 1.80%
+Citgo Petroleum 144A 11.375% 2/1/11 105,000 117,600
Dynegy Holdings
*6.75% 12/15/05 30,000 27,450
6.875% 4/1/11 30,000 24,150
*El Paso 7.00% 5/15/11 45,000 38,925
El Paso Natural Gas
6.75% 11/15/03 40,000 40,250
+144A 8.375% 6/15/32 30,000 30,750
*+El Paso Production 144A 7.75% 6/1/13 135,000 134,662
+Frontier Escrow 144A 8.00% 4/15/13 75,000 77,438
*Hanover Equipment Trust 8.50% 9/1/08 55,000 56,375
Key Energy Service 6.375% 5/1/13 120,000 122,099
+++Petroleum Geo-Services 6.25% 11/19/03 60,000 36,300
+Semco Energy 144A 7.75% 5/15/13 55,000 58,300
+Southern Natural Gas
144A 8.875% 3/15/10 35,000 38,150
Tennessee Gas Pipeline 8.375% 6/15/32 70,000 71,750
*+Tesoro Pete 144A 8.00% 4/15/08 95,000 95,475
Transcontinental Gas Pipeline
6.125% 1/15/05 35,000 35,350
6.25% 1/15/08 45,000 44,775
8.875% 7/15/12 75,000 83,250
*Williams - Series A 7.50% 1/15/31 40,000 34,000
*Williams Companies 6.625% 11/15/04 40,000 39,400
----------
1,206,449
----------
Environmental Services - 0.23%
+Casella Waste Systems
144A 9.75% 2/1/13 45,000 47,475
*IESI 10.25% 6/15/12 100,000 105,000
----------
152,475
----------
Food, Beverage & Tobacco - 0.59%
B&G Foods 9.625% 8/1/07 115,000 118,306
Denny's Corp/Denny's Holdings
12.75% 9/30/07 115,000 118,450
DiGiorgio 10.00% 6/15/07 95,000 94,525
National Wine & Spirits 10.125% 1/15/09 75,000 67,125
----------
398,406
----------
Healthcare & Pharmaceuticals - 0.20%
+Ameripath 144A 10.50% 4/1/13 35,000 36,575
[]+HMP Equity 144A
15.433% 5/15/08 30,000 14,400
Team Health 12.00% 3/15/09 80,000 82,000
----------
132,975
----------
Principal Market
Amount** Value (U.S.$)
- --------------------------------------------------------------------------------
Non-Convertible Bonds (continued)
- --------------------------------------------------------------------------------
Industrial Machinery - 0.09%
*Amkor Technology 9.25% 2/15/08 USD 55,000 $ 57,475
----------
57,475
----------
Leisure, Lodging & Entertainment - 1.18%
Alliance Gaming Series B 10.00% 8/1/07 45,000 46,913
Extended Stay America 9.875% 6/15/11 45,000 47,138
+Hard Rock Hotel 144A 8.875% 6/1/13 55,000 56,788
Herbst Gaming 10.75% 9/1/08 75,000 82,312
*MeriStar Hospitality Operating
Partnership 10.50% 6/15/09 55,000 53,763
Penn National Gaming 11.125% 3/1/08 60,000 66,000
*Regal Cinemas 9.375% 2/1/12 120,000 131,099
*Royal Caribbean 8.75% 2/2/11 150,000 151,499
*Six Flags 9.75% 6/15/07 55,000 55,413
+Town Sports International
144A 9.625% 4/15/11 25,000 26,125
+Turning Stone Casino Resort
Enterprise 144A 9.125% 12/15/10 70,000 74,112
----------
791,162
----------
Metals & Mining - 0.14%
Earle M. Jorgensen 9.75% 6/1/12 40,000 41,800
+++Weirton Steel 10% 4/1/08 522,500 54,863
----------
96,663
----------
Packaging & Containers - 0.46%
*AEP Industries 9.875% 11/15/07 85,000 82,875
Consolidated Container 10.125% 7/15/09 85,000 52,275
+Graham Packaging 144A 8.75% 1/15/08 55,000 54,450
Portola Packaging 10.75% 10/1/05 25,000 25,625
+Radnor Holdings 144A 11.00% 3/15/10 90,000 91,350
----------
306,575
----------
Paper & Forest Products - 0.34%
Georgia-Pacific
*9.875% 11/1/21 205,000 201,925
+144A 7.375% 7/15/08 25,000 24,875
----------
226,800
----------
Real Estate - 0.27%
Forest City Enterprises 7.625% 6/1/15 105,000 108,413
Tanger Properties 9.125% 2/15/08 70,000 72,625
----------
181,038
----------
Restaurants - 0.03%
Avado Brands 9.75% 6/1/06 45,000 20,925
----------
20,925
----------
Retail - 0.53%
*J Crew Operating 10.375% 10/15/07 100,000 94,500
*Office Depot 10.00% 7/15/08 100,000 117,500
*Petco Animal Supplies 10.75% 11/1/11 45,000 50,738
+Remington Arms 144A 10.50% 2/1/11 60,000 60,450
*Saks 7.25% 12/1/04 30,000 31,275
----------
354,463
----------
4
Statement Delaware Investments Global Dividend
OF NET ASSETS (CONTINUED) and Income Fund, Inc.
Principal Market
Amount** Value (U.S.$)
- --------------------------------------------------------------------------------
Non-Convertible Bonds (continued)
- --------------------------------------------------------------------------------
Telecommunications - 1.34%
[]+American Tower Escrow
144A 10.886% 8/1/08 USD 35,000 $ 22,050
Crown Castle International
#10.625% 11/15/07 50,000 53,125
*10.75% 8/1/11 85,000 89,675
Insight Midwest
9.75% 10/1/09 25,000 26,250
10.50% 11/1/10 45,000 48,825
*Nextel Communications 9.375% 11/15/09 60,000 64,650
Nextel Partners
*12.50% 11/15/09 30,000 33,750
#14.00% 2/1/09 70,000 71,225
Nortel Networks Capital 7.40% 6/15/06 60,000 59,100
Qwest 7.20% 11/1/04 35,000 35,919
+Qwest Services 144A 13.50% 1/1/08 135,000 154,237
Star Choice Communications
13.00% 12/15/05 45,000 47,700
Time Warner Telecommunications
9.75% 7/15/08 215,000 190,274
----------
896,780
----------
Textiles, Apparel & Furniture - 0.14%
+Oxford Industry 144A 8.875% 6/1/11 95,000 95,950
----------
95,950
----------
Transportation & Shipping - 0.47%
Hornbeck Offshore Services
10.625% 8/1/08 50,000 54,500
Kansas City Southern Railway
9.50% 10/1/08 85,000 91,375
+Overseas Shipholding Group
144A 8.25% 3/15/13 95,000 97,850
Stena AB 9.625% 12/1/12 65,000 70,931
----------
314,656
----------
Utilities - 1.13%
Avista 9.75% 6/1/08 100,000 111,000
Calpine 10.50% 5/15/06 85,000 70,125
Homer City Fund 8.137% 10/1/19 40,000 41,500
+Illinois Power 144A 11.50% 12/15/10 20,000 22,050
Midland Funding II 11.75% 7/23/05 100,000 108,250
Midwest Generation 8.30% 7/2/09 70,000 68,725
Mirant Americas Generation
*7.625% 5/1/06 35,000 25,988
8.30% 5/1/11 40,000 25,200
+Nevada Power 144A 10.875% 10/15/09 35,000 38,763
Orion Power Holdings 12.00% 5/1/10 65,000 70,525
+PSEG Energy Holdings 144A
7.75% 4/16/07 50,000 53,178
+Williams Gas Pipelines Central
144A 7.375% 11/15/06 120,000 126,600
----------
761,904
----------
Total Non-Convertible Bonds
(cost $9,756,014) 9,857,404
----------
Principal Market
Amount** Value (U.S.$)
- --------------------------------------------------------------------------------
Foreign Bonds - 41.01%
- --------------------------------------------------------------------------------
Australia - 3.39%
*Normandy Yandal Operations
8.875% 4/1/08 USD 95,000 $ 54,150
Queensland Treasury
6.00% 7/14/09 AUD 2,800,000 1,937,186
Telstra 6.375% 6/29/11 EUR 210,000 284,954
----------
2,276,290
----------
Austria - 0.83%
Republic of Austria 4.00% 7/15/09 450,000 555,202
----------
555,202
----------
Belgium - 2.41%
Belgium Government 5.75% 9/28/10 1,200,000 1,615,324
----------
1,615,324
----------
British Virgin Islands - 0.10%
*ChipPAC International
12.75% 8/1/09 USD 60,000 67,650
----------
67,650
----------
Canada - 1.08%
Ainsworth Lumber
12.50% 7/15/07 75,000 83,625
13.875% 7/15/07 20,000 22,500
CP Ships 10.375% 7/15/12 55,000 61,600
*Fairfax Financial Holdings
7.75% 12/15/03 115,000 115,000
Rogers Cablesystems 10.00% 3/15/05 175,000 188,125
*Tembec Industries 8.50% 2/1/11 155,000 154,225
Western Oil Sands 8.375% 5/1/12 95,000 103,075
----------
728,150
----------
Dominican Republic - 0.11%
+Dominican Republic 144A 9.04% 4/1/13 75,000 71,438
----------
71,438
----------
France - 2.46%
France Government Bond O.A.T.
5.50% 4/25/10 EUR 1,000,000 1,332,578
4.00% 10/25/09 260,000 319,652
----------
1,652,230
----------
Germany - 4.36%
Deutschland Republic
5.00% 7/4/11 1,300,000 1,683,737
6.25% 1/4/24 850,000 1,244,861
----------
2,928,598
----------
Greece - 0.44%
Hellenic Republic 8.60% 3/26/08 200,000 293,963
----------
293,963
----------
Ireland - 0.16%
MDP Acquisitions
9.625% 10/1/12 USD 20,000 21,625
+144A 9.625% 10/1/12 80,000 86,500
----------
108,125
----------
5
Statement Delaware Investments Global Dividend
OF NET ASSETS (CONTINUED) and Income Fund, Inc.
Principal Market
Amount** Value (U.S.$)
- --------------------------------------------------------------------------------
Foreign Bonds (continued)
- --------------------------------------------------------------------------------
Mexico - 4.58%
United Mexican States Global
7.375% 3/13/08 EUR 1,000,000 $ 1,334,701
8.25% 2/24/09 DEM 2,500,000 1,740,442
-----------
3,075,143
-----------
Netherlands - 0.40%
RWE Finance 6.125% 10/26/12 EUR 200,000 266,353
-----------
266,353
-----------
New Zealand - 5.72%
New Zealand Government
6.00% 11/15/11 NZD 3,000,000 1,811,994
7.00% 7/15/09 2,000,000 1,260,889
8.00% 4/15/04 1,300,000 770,159
-----------
3,843,042
-----------
Norway - 2.52%
Kingdom of Norway
6.00% 5/16/11 NOK 3,300,000 538,199
6.50% 5/15/13 3,200,000 544,768
6.75% 1/15/07 3,300,000 535,733
Ocean Rig Norway
10.25% 6/1/08 USD 85,000 70,975
-----------
1,689,675
-----------
Peru - 0.21%
Republic of Peru 4.00% 3/7/17 170,000 141,586
-----------
141,586
-----------
Poland - 3.93%
Poland Government
5.00% 10/24/13 PLZ 6,500,000 1,747,614
8.50% 2/12/05 1,200,000 342,572
12.00% 10/12/03 2,000,000 551,641
-----------
2,641,827
-----------
South Africa - 2.19%
Republic of South Africa
Series 153 13.00% 8/31/10 ZAR 10,000,000 1,469,849
-----------
1,469,849
-----------
Sweden - 6.00%
Sweden Government
5.00% 1/28/09 SEK 18,000,000 2,465,270
5.50% 10/8/12 5,000,000 707,316
6.75% 5/5/14 5,500,000 855,618
-----------
4,028,204
-----------
United Kingdom - 0.12%
British Telecom 6.875% 2/15/11 EUR 60,000 81,772
-----------
81,772
-----------
Total Foreign Bonds
(cost $22,594,118) 27,534,421
-----------
Number of Market
Shares Value (U.S.$)
- --------------------------------------------------------------------------------
Warrants - 0.04%
- --------------------------------------------------------------------------------
+++American Tower 144A 35 $ 3,955
++Solutia 130 1
++XM Satellite Radio 30 21,075
-----------
Total Warrants (cost $20,044) 25,031
-----------
Principal
Amount**
- --------------------------------------------------------------------------------
Short-Term Securities - 1.85%
- --------------------------------------------------------------------------------
***U.S. Treasury Bills
1.055% 6/26/03 USD 1,245,000 1,244,085
-----------
Total Short-Term Securities
(cost $1,244,085) 1,244,085
-----------
Total Market Value of Securities - 130.76%
(cost $81,102,919) 87,786,589
Short-Term Investments Held as Collateral
for Loaned Securities - 11.40%
(cost $7,651,588) (a) 7,651,588
Obligation to Return Securities
Lending Collateral - (11.40%) (a) (7,651,588)
Borrowings Under Line of Credit - (31.28%) (21,000,000)
Receivables and Other Assets
Net of Liabilities - 0.52% 349,925
-----------
Net Assets Applicable to 5,985,582
Shares ($0.01 par value) Outstanding;
Equivalent to $11.22 per share - 100.00% $67,136,514
===========
6
Statement Delaware Investments Global Dividend
OF NET ASSETS (CONTINUED) and Income Fund, Inc.
- --------------------------------------------------------------------------------
Components of Net Assets at May 31, 2003:
Common stock, $0.01 par value, 500,000,000
shares authorized to the Fund $76,172,983
Treasury stock, 665,065 shares at cost (8,599,291)
Distributions in excess of net investment income(b) (1,453,769)
Accumulated net realized loss on investments
and foreign currencies (5,641,644)
Net unrealized appreciation of investments
and foreign currencies 6,658,235
-----------
Total net assets $67,136,514
===========
+Security exempt from registration under Rule 144A of the Securities Act of
1933. See Note 9 in "Notes to Financial Statements".
++Non-income producing security for the period ended May 31, 2003.
Non-income producing security. Security is currently in default.
*Fully or partially on loan.
**Principal amount is stated in the currency in which each bond is denominated.
***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.
#Step coupon bond.
[]Zero coupon bond. The interest rate shown is the yield at the time of
purchase.
(a)See Note 8 in "Notes to Financial Statements".
(b)Undistributed net investment income includes net realized gains (losses)
on foreign currencies. Net realized gains (losses) on foreign currencies are
treated as net investment income in accordance with provisions of the
Internal Revenue Code.
Summary of Abbreviations
TIDES - Term Income Deferred Equity Securities
AUD - Australian Dollar
DEM - German Mark
EUR - European Monetary Unit
NOK - Norwegian Kroner
NZD - New Zealand Dollar
PLZ - Polish Zloty
SEK - Swedish Krona
USD - U.S. Dollar
ZAR - South African Rand
See accompanying notes
7
Statement Delaware Investments Global Dividend and Income Fund, Inc.
OF OPERATIONS Six Months Ended May 31, 2003 (Unaudited)
Investment Income:
Interest $1,430,587
Dividends (net of foreign taxes withheld of $40,478) 937,885
Security lending income 6,466 $ 2,374,938
---------- -----------
Expenses:
Management fees 285,301
Professional fees 70,822
Accounting and administration expenses 50,000
Reports to shareholders 37,980
Custodian fees 28,120
Transfer agent fees 22,922
NYSE fees 18,248
Directors' fees 5,822
Other 31,718
----------
Total operating expenses (before interest expense) 550,933
Interest expense 208,662
-----------
Total operating expenses (after interest expense) 759,595
Less expenses paid indirectly (725)
-----------
Total expenses 758,870
-----------
Net Investment Income 1,616,068
-----------
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currencies:
Net realized gain (loss) on:
Investments (593,529)
Foreign currencies 271,580
-----------
Net realized loss (321,949)
Net change in unrealized appreciation/depreciation of investments and foreign currencies 9,686,899
-----------
Net Realized and Unrealized Gain on Investments and Foreign Currencies 9,364,950
-----------
Net Increase in Net Assets Resulting from Operations $10,981,018
===========
See accompanying notes
8
Statements Delaware Investments Global Dividend and Income Fund, Inc.
OF CHANGES IN NET ASSETS
Six Months Year
Ended Ended
5/31/03 11/30/02
(Unaudited)
Increase (Decrease) in Net Assets from Operations:
Net investment income $ 1,616,068 $ 2,981,703
Net realized loss on investments and foreign currencies (321,949) (4,643,149)
Net change in unrealized appreciation/depreciation of investments and foreign currencies 9,686,899 3,106,527
----------- -----------
Net increase in net assets resulting from operations 10,981,018 1,445,081
----------- -----------
Dividends and Distributions to Shareholders from:
Net investment income (3,367,162) (2,182,468)
Return of capital -- (6,609,672)
----------- -----------
(3,367,162) (8,792,140)
----------- -----------
Net Increase (Decrease) in Net Assets 7,613,856 (7,347,059)
Net Assets:
Beginning of period 59,522,658 66,869,717
----------- -----------
End of period $67,136,514 $59,522,658
=========== ===========
See accompanying notes
Statement Delaware Investments Global Dividend and Income Fund, Inc.
OF CASH FLOWS Six Months Ended May 31, 2003 (Unaudited)
Net Cash (Including Foreign Currency) Provided by Operating Activities:
Net increase in net assets resulting from operations $10,981,018
-----------
Adjustments to reconcile net increase in net assets from operations to cash provided by operating activities:
Amortization of premium and discount on securities 188,188
Net proceeds from investment transactions 906,188
Net realized loss on investments 593,529
Net realized gain on foreign currencies (271,580)
Net change in unrealized appreciation/depreciation of investments and foreign currencies (9,686,899)
Increase in receivable for investments sold (1,341,023)
Increase in interest and dividends receivable (22,063)
Increase in other assets (209)
Increase in payable for investments purchased 1,866,167
Decrease in interest payable (13,990)
Increase in accrued expenses and other liabilities 18,842
-----------
Total adjustments (7,762,850)
-----------
Net cash provided by operating activities 3,218,168
-----------
Cash flows used for financing activities:
Cash dividends and distributions paid (3,367,162)
-----------
Net cash used for financing activities (3,367,162)
-----------
Effect of exchange rates on cash 22,887
-----------
Net decrease in cash (126,107)
Cash at beginning of period 88,253
-----------
Cash at end of period $ (37,854)
===========
Cash paid for interest $ 378,626
===========
See accompanying notes
9
Financial
HIGHLIGHTS
Selected data for each share of the Fund outstanding
throughout each period were as follows:
Delaware Investments Global Dividend and Income Fund, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Ended
5/31/03(5) 11/30/02(3) 11/30/01 11/30/00 11/30/99 11/30/98
(Unaudited)
Net asset value, beginning of period $ 9.940 $11.170 $11.770 $13.920 $15.700 $17.090
Income (loss) from investment operations:
Net investment income4 0.270 0.499 0.620 0.700 0.930 1.090
Net realized and unrealized gain (loss) on
investments and foreign currencies 1.573 (0.260) 0.280 (1.350) (1.070) (0.700)
------- ------- ------- ------- ------- -------
Total from investment operations 1.843 0.239 0.900 (0.650) (0.140) 0.390
------- ------- ------- ------- ------- -------
Less dividends and distributions from:
Net investment income (0.563) (0.365) (0.195) (0.530) (0.860) (1.380)
Net realized gains on investment transactions -- -- (0.084) (0.470) (0.780) (0.400)
Return of capital -- (1.104) (1.221) (0.500) -- --
------- ------- ------- ------- ------- -------
Total dividends and distributions (0.563) (1.469) (1.500) (1.500) (1.640) (1.780)
------- ------- ------- ------- ------- -------
Net asset value, end of period $11.220 $ 9.940 $11.170 $11.770 $13.920 $15.700
======= ======= ======= ======= ======= =======
Market value, end of period $11.950 $10.400 $12.400 $10.380 $11.750 $15.880
======= ======= ======= ======= ======= =======
Total return based on:(1)
Market value 21.04% (5.49%) 34.52% 0.29% (17.00%) 2.05%
Net asset value 18.90% 0.28% 6.91% (4.04%) (0.57%) 2.19%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $67,137 $59,523 $66,870 $70,420 $92,601 $104,446
Ratio of total operating expenses to average net assets 2.51% 2.26% 3.31% 3.45% 2.69% 2.69%
Ratio of total operating expenses to adjusted
average net assets (before interest expense)(2) 1.35% 1.06% 1.10% 1.04% 1.00% 1.03%
Ratio of interest expense to adjusted average net
assets(2) 0.51% 0.64% 1.35% 1.62% 1.15% 1.16%
Ratio of net investment income to average net assets 5.35% 4.69% 5.18% 5.34% 6.14% 6.63%
Ratio of net investment income to adjusted average
net assets(2) 3.97% 3.53% 3.84% 4.11% 4.92% 5.38%
Portfolio turnover 120% 69% 47% 43% 58% 51%
Leverage analysis:
Debt outstanding at end of period (000 omitted) $21,000 $21,000 $25,000 $25,000 $25,000 $25,000
Average daily balance of debt outstanding (000 omitted) $21,000 $21,603 $25,000 $25,000 $25,000 $25,000
Average daily balance of shares outstanding (000 omitted) 5,986 5,986 5,986 6,389 6,651 6,651
Average debt per share $3.51 $3.61 $4.18 $3.91 $3.76 $3.76
(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.
(2) Adjusted average net assets excludes debt outstanding.
(3) As required, effective December 1, 2001, the Fund has adopted the provisions
of the AICPA Audit and Accounting Guide for Investment Companies that
require amortization of all premium and discounts on debt securities. The
effect of this change for the year ended November 30, 2002 was a decrease in
net investment income per share of $0.024, an increase in net realized and
unrealized gain (loss) per share of $0.024, a decrease in the ratio of net
investment income to average net assets of 0.23%, and a decrease in the
ratio of net investment income to adjusted average net assets of 0.17%. Per
share data and ratios for periods prior to December 1, 2001 have not been
restated to reflect this change in accounting.
(4) The average shares outstanding method has been applied for per share
information.
(5) Ratios and portfolio turnover have been annualized and total return has not
been annualized.
See accompanying notes
10
Notes Delaware Investments Global Dividend and Income
TO FINANCIAL STATEMENTS Fund, Inc.
May 31, 2003 (Unaudited)
Delaware Investments Global Dividend and Income Fund, Inc. (the "Fund") is
organized as a Maryland corporation and is a diversified closed-end management
investment company under the Investment Company Act of 1940, as amended. The
Fund's shares trade on the New York Stock Exchange under the symbol DGF.
The investment objective of the Fund is to seek high current income. Capital
appreciation is a secondary objective.
1. Significant Accounting Policies
The following accounting policies are in accordance with accounting principles
generally accepted in the United States and are consistently followed by the
Fund.
Security Valuation - All domestic equity securities are valued at the last
quoted sales price as of time of the regular close of the New York Stock
Exchange (NYSE) on the valuation date. If on a particular day an equity security
does not trade, then the mean between the bid and asked prices will be used.
Securities listed on a foreign exchange are normally valued at the last quoted
sales price before the Fund is valued. If on a particular day a security does
not trade, then the mean between the bid and the asked prices will normally be
used. U.S. government and agency securities are valued at the mean between the
bid and asked prices. Long-term debt securities are valued by an independent
pricing service and such prices are believed to reflect the fair value of such
securities. Short-term debt securities 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 under the direction of the Fund's Board of
Directors. In determining whether market quotations are readily available or
fair valuation will be used, various factors will be taken into consideration,
such as market closures, or with respect to foreign securities, aftermarket
trading or significant events after local market trading (e.g., government
actions or pronouncements, trading volume or volatility on markets, exchanges
among dealers, or news events).
Federal Income Taxes - The Fund intends to continue to qualify for federal
income tax purposes 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.
Distributions - The Fund has a managed distribution policy. Under the policy,
the Fund declares and pays monthly distributions and is managed with a goal of
generating as much of the distribution as possible from ordinary income (net
investment income and short-term capital gains). The balance of the distribution
then comes from long-term capital gains and, if necessary, a return of capital.
The current annualized rate is $1.125 per share. The Fund continues to evaluate
its monthly distribution in light of ongoing economic and market conditions and
may change the amount of the monthly distributions in the future.
Foreign Currency Transactions - Transactions denominated in foreign currencies
are recorded at the prevailing exchange rates on the valuation date. The values
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 daily. 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. The Fund isolates
that portion of realized gains and losses on investments in debt securities,
which are due to changes in foreign exchange rates from that which are due to
changes in market prices of debt securities. For foreign equity securities,
these changes are included in realized gains (losses) on investments. The Fund
reports certain foreign currency related transactions as components of realized
gains (losses) for financial reporting purposes, where such components are
treated as ordinary income (loss) for federal income tax purposes.
Use of Estimates - The preparation of financial statements in conformity with
accounting principles generally accepted in the United States 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 - Expenses common to all funds within the Delaware Investments Family of
Funds are allocated amongst the funds on the basis of average net assets.
Security transactions are recorded on the date the securities are purchased or
sold (trade date). Costs used in calculating realized gains and losses on the
sale of investment securities are those of the specific securities sold.
Dividend income is recorded on the ex-dividend date and interest income is
recorded on the accrual basis. Discounts and premiums are amortized to interest
income over the lives of the respective securities. 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.
Withholding taxes on foreign dividends have been recorded in accordance with the
Fund's understanding of the applicable country's tax rules and rates.
Distributions received from Real Estate Investment Trusts are recorded as
dividend income on ex-dividend date, subject to reclassification upon notice of
the character of such distributions by the issuer.
Certain expenses of the Fund are paid through commission arrangements with
brokers. These transactions are done subject to best execution. The amount of
these expenses was approximately $725 for the six months ended May 31, 2003. In
addition, 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 six months ended May 31, 2003. 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".
2. Investment Management, Administration Agreements and Other Transactions with
Affiliates
In accordance with the terms of its investment management agreement, the Fund
pays Delaware Management Company (DMC), a series of Delaware Management Business
Trust and the investment manager, an annual fee of 0.70%, which is calculated
daily based on the adjusted average weekly net assets.
DMC has entered into a sub-advisory agreement with Delaware International
Advisers Ltd. (DIAL), an affiliate of DMC, related to the foreign securities
portion of the Fund. For the services provided, DMC pays DIAL a monthly fee
which is equal to 40% of the fee paid to DMC under the terms of the Investment
Management Agreement. The Fund does not pay any fees directly to DIAL.
The Fund has engaged Delaware Service Company, Inc. (DSC), an affiliate of DMC
and DIAL, 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
weekly net assets, subject to an annual minimum of $100,000.
11
Notes Delaware Investments Global Dividend and
TO FINANCIAL STATEMENTS (CONTINUED) Income Fund, Inc.
2. Investment Management, Administration Agreements and Other Transactions with
Affiliates (continued)
For purposes of the calculation of investment management fees and administration
fees, adjusted average weekly net assets does not include the line of credit
liability. At May 31, 2003, the Fund had liabilities payable to affiliates as
follows:
Investment Accounting, Other expenses
management fee administration and other payable to DMC
payable to DMC expenses payable to DSC and affiliates
-------------- ------------------------ --------------
$10,633 $14,377 $2,599
Certain officers of DMC, DIAL and DSC are officers and/or directors of the Fund.
These officers and directors are paid no compensation by the Fund.
3. Investments
For the six months ended May 31, 2003, the Fund made purchases of $47,193,093
and sales of $48,331,621 of investment securities other than U.S. government
securities and short-term investments.
At May 31, 2003, the cost of investments for federal income tax purposes has
been estimated since the final tax characteristics cannot be determined until
fiscal year end. At May 31, 2003, the cost of investments was $81,028,730. At
May 31, 2003, the net unrealized appreciation was $6,757,859 of which
$12,777,424 related to unrealized appreciation of investments and $6,019,565
related to unrealized depreciation of investments.
4. Dividend and Distribution Information
Income and long-term capital gain distributions are determined in accordance
with federal income tax regulations, which may differ from accounting principles
generally accepted in the United States. The tax character of dividends and
distributions paid during the six months ended May 31, 2003 and year ended
November 30, 2002 was as follows:
Six Months Year
Ended Ended
5/31/03* 11/30/02
---------- --------
Ordinary income $3,367,162 $2,182,468
Return of capital -- 6,609,672
---------- ----------
Total $3,367,162 $8,792,140
========== ==========
*Tax information for the six months ended May 31, 2003 is an estimate and a
portion of the ordinary income will be redesignated as return of capital at
fiscal year end.
The components of net assets are estimated since final tax characteristics
cannot be determined until fiscal year end. As of May 31, 2003, the estimated
components of net assets on a tax basis were as follows:
Shares of beneficial interest $67,573,692
Distributions in excess of ordinary income (1,453,769)
Net realized capital losses on investments (550,012)
Capital loss carryforwards (5,080,199)
Unrealized appreciation/depreciation on investments 6,646,802
-----------
Net assets $67,136,514
===========
For federal income tax purposes, capital loss carryforwards may be carried
forward and applied against future capital gains. Such capital loss
carryforwards expire as follows: $1,093,240 expires in 2009 and $3,986,959
expires in 2010.
5. Capital Stock
The Fund did not repurchase any shares under the Share Repurchase Program or
have any transactions in common shares during the six months ended May 31, 2003.
Shares issuable under the Fund's dividend reinvestment plan are purchased by the
Fund's transfer agent, Mellon Investor Services, LLC, in the open market.
6. Line of Credit
The Fund has entered into a Line of Credit Agreement with J.P. Morgan Chase for
$21,000,000. At May 31, 2003, the par value of loans outstanding was $21,000,000
at a variable interest rate of 1.82%. During the period, the average daily
balance of loans outstanding was $21,000,000 at a weighted average interest rate
of approximately 1.98%. The maximum amount of loans outstanding at any time
during the year was $21,000,000. The loan is collateralized by the Fund's
portfolio.
7. Foreign Exchange Contracts
The Fund may enter into forward foreign currency exchange 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 that are denominated in foreign
currencies.
Forward foreign currency exchange contracts are valued at the mean between the
bid and asked prices of the contracts and are marked-to-market daily.
Interpolated values are derived when the settlement date of the contract is an
interim date for which quotations are not available. The change in market value
is recorded as an unrealized gain or loss. When the contract is closed, a
realized gain or loss is recorded 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 exchange contracts does not eliminate
fluctuations in the underlying prices of the securities, but does establish a
rate of exchange that can be achieved in the future. Although forward foreign
currency exchange 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.
The following foreign currency exchange contracts were outstanding at May 31,
2003:
Settlement Unrealized
Contracts to Deliver In Exchange for Date Depreciation
- -------------------- --------------- ---------- ------------
2,230,764 $1,620,370 6/2/2003 ($3,916)
Canadian Dollars
Settlement Unrealized
Contracts to Deliver In Exchange for Date Depreciation
- -------------------- --------------- ---------- ------------
10,855,180 $1,624,419 6/3/2003 ($2,804)
Norwegian Kroner
12
Notes Delaware Investments Global Dividend and
TO FINANCIAL STATEMENTS (CONTINUED) Income Fund, Inc.
8. Securities Lending
The Fund, along with other funds in the Delaware Investments Family of Funds,
may lend its securities pursuant to a security lending agreement (Lending
Agreement) with J.P. Morgan Chase. Initial security loans made pursuant to the
Lending Agreement are required to be secured by U.S. Treasury obligations and/or
cash collateral not less than 102% of the market value of the securities issued
in the United States and 105% of the market value of securities issued outside
the United States. With respect to each loan, if the aggregate market value of
the collateral held on any business day is less than the aggregate market value
of the securities which are the subject of such loan, the borrower will be
notified to provide additional collateral not less than the applicable
collateral requirements.
Cash collateral received is invested in fixed-income securities, with a weighted
average maturity not to exceed 90 days, rated in one of the top two tiers by
Standard & Poor's Ratings Group or Moody's Investors Service, Inc. or repurchase
agreements collateralized by such securities. However, in the event of default
or bankruptcy by the lending agent, realization and/or retention of the
collateral may be subject to legal proceedings.
In the event the borrower fails to return loaned securities and the collateral
received is insufficient to cover the value of the loaned securities and
provided such collateral shortfall is not the result of investment losses, the
lending agent has agreed to pay the amount of the shortfall to the Fund, or at
the discretion of the lending agent, replace the loaned securities. At May 31,
2003, the market value of securities on loan was $7,633,340.
The securities on loan were collateralized by the following:
Description Market Value
- ----------- ------------
Morgan Stanley Dean Witter Discover 1.41% 6/1/04 $ 86,721
Canadian Imperial Bank NY 1.4095% 10/9/03 43,350
Racers Series 2002-35-C 1.60855% 4/15/04 215,928
Goldman Sachs Group LP 1.515% 7/14/03 303,524
Wilmington Trust Company 1.26% 7/21/03 217,471
Fannie Mae 1.314945% 1/29/04 2,167,944
Barclays London 1.27% 6/17/03 347,347
Merrill Lynch Mortgage Capital 1.475% 6/6/03 216,803
UBS Warburg LLC 1.375% 6/2/03 4,052,500
----------
$7,651,588
==========
9. 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 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 invests in high-yield fixed income securities, which carry ratings of
BB or lower by Standard & Poor's Ratings Group and/or Ba or lower by Moody's
Investors Service. Investments in these higher yielding securities are generally
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 these securities may impair the Fund from disposing of them in a
timely manner and at a fair price when it is necessary or desirable to do so.
The Fund invests in real estate investment trusts (REITs) and is subject to some
of the risks associated with that industry. If the Fund holds real estate
directly as a result of defaults or receives rental income directly from real
estate holdings, its tax status as a regulated investment company may be
jeopardized. There were no direct holdings during the six months ended May 31,
2003. The Fund's REIT holdings are also affected by interest rate changes,
particularly if the REITs it holds use floating rate debt to finance their
ongoing operations.
10. Industry Allocation
As of May 31, 2003, the foreign bond holdings of the Fund, classified by type of
business, were as follows:
Percentage
Industry of Net Assets
- -------------------------------------------------------------------------
Banking, Finance & Insurance 0.17%
- -------------------------------------------------------------------------
Building & Materials 0.31%
- -------------------------------------------------------------------------
Cable, Media & Publishing 0.28%
- -------------------------------------------------------------------------
Computers & Technology 0.10%
- -------------------------------------------------------------------------
Energy 0.11%
- -------------------------------------------------------------------------
Government 38.54%
- -------------------------------------------------------------------------
Mining 0.08%
- -------------------------------------------------------------------------
Paper & Forest Products 0.39%
- -------------------------------------------------------------------------
Telecommunications 0.55%
- -------------------------------------------------------------------------
Transportation 0.09%
- -------------------------------------------------------------------------
Utilities 0.40%
- -------------------------------------------------------------------------
Total 41.01%
- -------------------------------------------------------------------------
Like any investment in securities, the value of the Fund may be subject to risk
or loss from market, currency, economic and political factors which may occur in
the countries where the Fund is invested.
13
Delaware
Investments(SM) [LOGO]
- --------------------------------------
A member of Lincoln Financial Group(R)
This semiannual report is for the information of Delaware Investments Global
Dividend and Income Fund, Inc. shareholders. 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.
Board of Directors Affiliated Officers Contact Information
Walter P. Babich Jude T. Driscoll Investment Manager
Board Chairman Chairman Delaware Management Company
Citadel Construction Corporation Delaware Investments Family of Funds Philadelphia, PA
King of Prussia, PA Philadelphia, PA
International Affiliate
David K. Downes Michael P. Bishof Delaware International Advisers Ltd.
President and Chief Executive Officer Senior Vice President and Treasurer London, England
Delaware Investments Family of Funds Delaware Investments Family of Funds
Philadelphia, PA Philadelphia, PA Principal Office of the Fund
2005 Market Street
John H. Durham Richelle S. Maestro Philadelphia, PA 19103
Private Investor Senior Vice President,
Gwynedd Valley, PA General Counsel and Secretary Independent Auditors
Delaware Investments Family of Funds Ernst & Young LLP
John A. Fry Philadelphia, PA 2001 Market Street
President Philadelphia, PA 19103
Franklin & Marshall College
Lancaster, PA Registrar and Stock Transfer Agent
Mellon Investor Services, LLC
Anthony D. Knerr Overpeck Centre
Managing Director 85 Challenger Road
Anthony Knerr & Associates Ridgefield, NJ 07660
New York, NY 800 851-9677
Ann R. Leven* For Securities Dealers and Financial
Former Treasurer/Chief Fiscal Officer Institutions Representatives Only
National Gallery of Art 800 362-7500
Washington, DC
Web site
Thomas F. Madison* www.delawareinvestments.com
President and Chief Executive Officer
MLM Partners, Inc.
Minneapolis, MN
Janet L. Yeomans*
Vice President/Mergers & Acquisitions
3M Corporation
St. Paul, MN
*Audit Committee Member
- --------------------------------------------------------------------------------
Your Reinvestment Options
Delaware Investments Global Dividend and Income Fund, Inc. offers an automatic
dividend reinvestment program. If you would like to reinvest dividends, and
shares are registered in your name, contact Mellon Investor Services, LLC at 800
851-9677. 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 advisor.
- --------------------------------------------------------------------------------
(7910) Printed in the USA
SA-DGF [5/03] IVES 7/03 J9272
Item 2. Code of Ethics
Not applicable.
Item 3. Audit Committee Financial Expert
Not applicable.
Item 4. Principal Accountant Fees and Services
Not applicable.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. [Reserved]
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies
Not applicable.
Item 8. [Reserved]
Item 9. Controls and Procedures
The registrant's principal executive officer and principal financial
officer have evaluated the registrant's disclosure controls and procedures
within 90 days of the filing of this report and have concluded that they are
effective in ensuring that the information required to be disclosed by the
registrant in its reports or statements filed under the Securities Exchange Act
of 1934 is recorded, processed, summarized and reported within the time periods
specified in the rules and forms of the Securities and Exchange Commission.
There were no significant changes in the registrant's internal controls
or in other factors that could significantly affect these controls subsequent to
the date of their last evaluation, including any corrective actions with regard
to significant deficiencies and material weaknesses.
Exhibits
(a) Code of Ethics
Not applicable.
(b) (1) Certifications of Principal Executive Officer and Principal Financial
Officer pursuant to Rule 30a-2 under the Investment Company Act of 1940 are
attached hereto as Exhibit 99.CERT.
(2) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of
2002 are attached hereto as Exhibit 99.906CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf, by the undersigned, thereunto duly authorized.
Delaware Investments Global Dividend and Income Fund, Inc.:
Jude T. Driscoll
- ---------------------------
By: Jude T. Driscoll
Title: Chairman
Date: August 4, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
Jude T. Driscoll
- ---------------------------
By: Jude T. Driscoll
Title: Chairman
Date: August 4, 2003
Michael P. Bishof
- ---------------------------
By: Michael P. Bishof
Title: Treasurer
Date: August 4, 2003