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: November 30
Date of reporting period: November 30, 2003
Item 1. Reports to Stockholders
Delaware
Investments(SM)
--------------------------------------
A member of Lincoln Financial Group(R)
CLOSED-END
Annual Report 2003
- --------------------------------------------------------------------------------
DELAWARE INVESTMENTS GLOBAL
DIVIDEND AND INCOME FUND, INC.
[LOGO]
POWERED BY RESEARCH.(SM)
Table
OF CONTENTS
- ------------------------------------------------------------------
PORTFOLIO MANAGEMENT REVIEW 1
- ------------------------------------------------------------------
PERFORMANCE SUMMARY 3
- ------------------------------------------------------------------
FINANCIAL STATEMENTS:
Statement of Net Assets 5
Statement of Operations 11
Statements of Changes in Net Assets 12
Statement of Cash Flows 12
Financial Highlights 13
Notes to Financial Statements 14
- ------------------------------------------------------------------
REPORT OF INDEPENDENT AUDITORS 17
- ------------------------------------------------------------------
BOARD OF DIRECTORS/OFFICERS 18
- ------------------------------------------------------------------
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 and Delaware International Advisers Ltd.,
which are both registered investment advisors.
(C) 2004 Delaware Distributors, L.P.
Portfolio Delaware Investments Global Dividend and Income Fund, Inc.
MANAGEMENT REVIEW December 10, 2003
Fund Managers
Damon J. Andres
Senior Portfolio Manager
Equities
Delaware Management Company
Nancy M. Crouse
Senior Portfolio Manager
Equities
Delaware Management Company
Timothy L. Rabe
Senior Portfolio Manager
Fixed Income
Delaware Management Company
Joanna Bates
Senior Portfolio Manager
Foreign Fixed Income
Delaware Investment Advisers, Ltd.
Clive A. Gillmore
Senior Portfolio Manager
Foreign Equities
Delaware Investment Advisers, Ltd.
Christopher A. Moth
Senior Portfolio Manager
Foreign Fixed Income
Delaware Investment Advisers, Ltd.
Q: How did the Fund perform for the 12-month period ended November 30, 2003?
A: Delaware Investments Global Dividend and Income Fund, Inc. gained +32.63% (at
net asset value with distributions reinvested) for the fiscal year. In
comparison, its benchmark, the Standard & Poor's (S&P) 500 Index, gained +15.08%
for the same time period. The Fund's peer group, as measured by the Lipper
Closed-End Income and Preferred Stock Funds Average, rose +23.93% for the fiscal
year.
Q: How would you describe your domestic equity outlook at the beginning of the
fiscal year?
A: Our outlook for common stocks was generally optimistic. We believed the
economic recovery would likely gather steam in 2003, to the benefit of corporate
profitability. We also experienced an environment marked by attractive stock
valuations, which favors our value-oriented style of investing.
Q: How would you describe your equity investment strategy during the fiscal
year?
A: We favored market sectors such as financials. We viewed J.P. Morgan Chase as
a sound holding, given its strong balance sheet and a dividend yield that we
believed was both robust and durable. We also leaned our security weightings
toward economically sensitive companies, such as Weyerhaeuser. The producer of
wood-related products also generated an attractive income stream and was well
positioned, in our opinion, to benefit from the economy's improvement.
Q: Did any common stocks within the Fund underperform relative to your
expectations?
A: Some of our healthcare positions turned in performances that we believe did
not reflect the quality of their underlying companies. We credit this
circumstance, in part, to investor uncertainty regarding proposed changes in
Medicare legislation, as well as concerns regarding patent expirations.
Q: What caused the solid performance of high-yield bonds during the 12-month
period?
A: A primary cause for the high-yield bond market rebound was the Federal
Reserve's push to add liquidity to the economy. By lowering short-term interest
rates, the Fed was attempting to provide incentive for greater bank lending,
which in turn puts more money to work in the economy and tends to foster
economic expansion. When the prospects for a stronger economy became apparent,
investors directed their assets toward securities that particularly benefit from
such an environment, including high-yield corporate bonds -- and high-yield bond
mutual funds. High-yield bonds also benefited from generally improving
operational conditions throughout the business community. Companies issuing
high-yield bonds tended to extend their debt and experienced declining default
rates, from as high as double-digit levels to roughly the five-to-six percent
range of late.
Q: How did you manage the Fund's high-yield bond allocation during the fiscal
year?
A: We saw no reason to alter the manner in which we strategically managed the
portfolio during the 12-month period. We continued to focus on the lower-rated
securities within this asset class, given the availability of attractive yields,
as well as the general prospect for rising bond prices. Compared to our
high-yield benchmark, the Citigroup High Yield Cash Pay Index, we tended to hold
a greater weighting in utility bonds, due in part to the presence of "fallen
angels" -- high-grade bonds that were downgraded to high-yield status. Given
Delaware's strong commitment to fundamental research capabilities, we believe we
could identify attractive candidates for acquisition among such bonds.
1
Q: Please describe some high-yield securities that impacted Fund performance
during the 12-month period.
A: High-yield issues that provided sound performance for the Fund included
Charter Communications. While our overall return was strong, we held some
underperforming securities, too. One was DiGiorgio Foods, which declined in
value after losing one of its larger customers.
Q: How did real estate investment trusts (REITs) impact Fund performance during
the fiscal year?
A: As an asset class, REITs turned in a strong performance. Specifically, the
Fund benefitted from its exposure to the retail sector, which included regional
malls and shopping centers. The Fund also gained a measure of performance versus
our REIT benchmark by being less heavily weighted in the multi-family sector,
where apartment vacancies rose during the 12-month period. Conversely, the Fund
lost performance with its overweighting in the travel sector, a position we
developed in anticipation of speedy economic recovery but which suffered from
industry volatility. Performance was also impeded somewhat from an overweighting
in the office sector. Like the multi-family sector, this area of the REIT market
suffered from falling occupancy rates.
Q: What role did convertible securities play for the
12-month period?
A: As a percentage of net assets, convertible securities represent a smaller
portion of your Fund. However, we believe they play a beneficial role in adding
diversification to the portfolio, and generate both income and capital
appreciation potential. Our approach to managing the portfolio's convertible
securities did not change over the 12-month period. Our research focused on
identifying companies selling at attractive valuations that feature strong cash
flows and balance sheets. Convertible securities' performance within the Fund
was in line with the broad equity market, yet with less volatility and a greater
income stream.
Q: What was the environment for international stock investing during the fiscal
year?
A: Non-domestic equities largely rose in unison with their U.S. counterparts,
owing to investors' generally optimisism on global economic renewal and its
positive impact on corporate earnings moving forward. During the period, we
focused on well-managed, larger-size companies that we believed were undervalued
in terms of dividends and growth potential. We gained a measure of added
performance during the period as a result of the declining U.S. dollar, which
helped lift most major foreign currencies. Q: What was the international equity
portfolio's general composition for the 12-month period? A: Regionally, we
favored overweighted positions in Australia and New Zealand, while electing to
be less heavily weighted in Japan. The Japanese market rebounded somewhat during
the fiscal year, owing in part to increased private spending versus the wasteful
public works programs of prior years. We remain cautious of the island nation,
however, due to lingering attempts at reflation and structural reform. In
Europe, we held an overweighted exposure in the U.K., which has benefited from
internal expansion and its separation from the European Union (EU). That body
came under scrutiny late in the period as its largest member, Germany, suspended
the very initiative it advocated years earlier -- to have member states curb
fiscal deficits to prescribed limits. France has followed suit, leaving open the
prospect for EU states to run higher-than-anticipated deficits. This would place
upward pressure on interest rates, which in turn may limit future stock price
appreciation.
Q: How did the Fund's exposure to international fixed income contribute to
fiscal-year performance?
A: Non-U.S. bonds performed reasonably well during the 12-month period, owing in
part to generally declining interest rates. Non-government debt further
benefited from improving business conditions around the globe, driven by
continued economic strengthening. While in some cases government spending
initiatives contributed to the expansion, stepped-up business expenditures
appeared to do the trick, as was the case for Japan during the second half of
the Fund's fiscal year.
2
Delaware
INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC.
Fund Basics Fund Performance
As of November 30, 2003 Average Annual Total Returns
- ---------------------------------------------- Through November 30, 2003 Lifetime Five Years One Year
Fund Objectives: ---------------------------------------------------------------------
The Fund seeks to achieve high current income. At Market Price +8.50% +5.91% +25.92%
Capital appreciation is a secondary objective. At Net Asset Value +9.35% +6.29% +32.63%
- ---------------------------------------------- ---------------------------------------------------------------------
Total Fund Net Assets:
$71.69 million Returns reflect reinvestment of all distributions. Shares of the Fund were
- ---------------------------------------------- initially offered with a sales charge of 6.0%. Performance since inception does
Number of Holdings: not include the sales charge or any brokerage commissions for purchases made
297 since inception. Past performance is not a guarantee of future results.
- ----------------------------------------------
Fund Start Date: The performance table and graphs on the following page do not reflect the
March 4, 1994 deduction of taxes the shareholder would pay on Fund distributions or
- ---------------------------------------------- redemptions of Fund shares.
Your Fund Managers:
Damon J. Andres earned a bachelor's degree in Joanna Bates is a graduate of London
business administration with an emphasis in University, and is an associate of the
finance and accounting from the University of Institute of Investment Management and
Richmond. Prior to joining Delaware Research. She joined Delaware Investment's
Investments in 1994, Mr. Andres performed Fixed Income team in 1997, before which she
investment-consulting services with Cambridge was Associate Director, Fixed Interest at Hill
Associates, Inc. in Arlington, Virginia. Mr. Samuel Investment Management. She has also
Andres is a CFA charterholder. worked for Fidelity International and Save &
Prosper as a fund manager and analyst for
Nancy M. Crouse has a bachelor's degree from global bond markets.
Lafayette College and an MBA from the
University of Pittsburgh. She is the consumer Clive A. Gillmore is a graduate of the
growth and consumer staples team leader, a University of Warwick. Mr. Gillmore joined
member of the portfolio review team and a Delaware Investments in 1990 after serving in
co-manager of open- and closed-end mutual the investment management field for eight
funds. Ms. Crouse began her career in finance years. He previously was Senior Portfolio
at Philadelphia National Bank. Before joining Manager at Hill Samuel Investment Management.
Delaware Investments in 1993, she served as
Vice President at CoreStates Investment Christopher A. Moth is an actuarial graduate
Advisers, where she performed securities from The City University in London, and was
analysis and managed balanced portfolios. Ms. later awarded the Certificate in Finance &
Crouse is a CFA charterholder and a member of Investment from the London Institute of
the Philadelphia Society of Financial Actuaries. Mr. Moth joined Delaware
Analysts. Investments in 1992, after working for the GRE
insurance company where he was responsible for
Timothy L. Rabe is Senior Vice-President/ quantitative models and projections.
Senior Portfolio Manager of Delaware's -----------------------------------------------
high-yield funds. Mr. Rabe received a NYSE Symbol:
bachelor's degree in finance from the DGF
University of Illinois. Prior to joining
Delaware Investments in 2000, Mr. Rabe was a
high-yield portfolio manager for Conseco
Capital Management. Before that, he worked as
a tax analyst for The Northern Trust Company.
Mr. Rabe is a CFA charterholder.
3
Market Price vs. Net Asset Value
November 30, 2002 through November 30, 2003
- -- Delaware Investments Global Dividend and Income Fund, Inc. @ NAV
- -- Delaware Investments Global Dividend and Income Fund, Inc. @ Market Price
Delaware Investments Global Dividend & Income Fund Inc. - Peformance of $10,000
investment chart
Delaware Investments
Global Dividend & Delaware Investments
Income Fund, Inc. - Global Dividend &
Market Price Income Fund, Inc. - NAV
11/30/2002 $10.40 $9.94
12/31/2002 $10.38 $10.00
1/31/2003 $10.39 $9.89
2/28/2003 $10.27 $9.81
3/31/2003 $10.30 $9.84
4/30/2003 $11.31 $10.64
5/31/2003 $11.95 $11.22
6/30/2003 $12.30 $11.28
7/31/2003 $12.19 $11.28
8/31/2003 $11.47 $11.16
9/30/2003 $11.30 $11.43
10/31/2003 $11.82 $11.73
11/30/2003 $11.90 $11.98
Past performance is not a guarantee of future results.
Performance of a $10,000 Investment
March 4, 1994 (Fund's inception) to November 30, 2003
- -- Delaware Investments Global Dividend and Income Fund, Inc. @ NAV
- -- Lipper Closed-End Income and Preferred Stock Funds Average (28 funds)
@ Market Price
- -- Delaware Investments Global Dividend and Income Fund, Inc. @ Market Price
- -- Lipper Closed-End Income and Preferred Stock Funds Average (28 funds)
@ NVA
Delaware Delaware Lipper Closed-end
Investments Global Investments Global Lipper Closed-end Income & Preferred
Dividend & Income Dividend & Income Income & Preferred stock funds avg @
Fund, Inc. @ NAV Fund, Inc. @ Market Price stock funds avg @ (NAV) (Market Price)
03/04/94 $10,000 $10,000 $10,000 $10,000
11/30/94 $ 9,889 $ 8,285 $ 9,543 $ 9,096
11/30/95 $11,776 $10,749 $12,103 $11,738
11/30/96 $14,614 $13,696 $13,652 $13,603
11/30/97 $17,234 $16,296 $15,860 $15,730
11/30/98 $17,611 $16,630 $17,020 $17,113
11/30/99 $17,511 $13,803 $16,219 $14,667
11/30/00 $16,804 $13,843 $17,303 $15,863
11/30/01 $17,965 $18,621 $18,615 $20,079
11/30/02 $18,015 $17,599 $17,429 $19,238
11/30/03 $23,394 $22,161 $19,729 $23,842
Chart assumes $10,000 invested on March 4, 1994, and reflects the reinvestment
of all distributions at market value. Performance of the Fund and the Lipper
peer group at market value are based on market performance during the period.
Performance of the Fund and the Lipper peer group at net asset value are based
on the fluctuations in net asset value during the period. The chart also assumes
$10,000 invested in the Lipper Closed-End Income and Preferred Stock Funds
Average at Market Price and at Net Asset Value at that month's end, March 31,
1994. After March 31, 1994, returns plotted were as of the last day of each
month shown. Delaware Investments Global Dividend and Income Fund, Inc. was
initially offered with a sales charge of 6.0%. Performance since inception does
not include fees, the initial sales charge or any brokerage commissions for
purchases made since inception. Investments in the Fund are not available at net
asset value. The Lipper Closed-End Income and Preferred Stock Funds Average
represents the average return of closed-end income and preferred stock mutual
funds tracked by Lipper (Source: Lipper Inc.). You cannot invest directly in an
index. Past performance is not a guarantee of future results.
4
Statement Delaware Investments Global Dividend and Income Fund, Inc.
OF NET ASSETS November 30, 2003
Number of Market
Shares Value (U.S.$)
Common Stock - 69.16%
Aerospace & Defense - 0.56%
Raytheon 14,500 $ 401,795
-----------
401,795
-----------
Automobiles & Automotive Parts - 0.97%
General Motors 10,200 436,356
GKN 56,000 257,152
-----------
693,508
-----------
Banking, Finance & Insurance - 14.82%
Aviva 62,582 501,025
Banco Santander Central Hispano 39,771 413,329
Bank of America 8,300 626,069
Friedman Billings Ramsey Group 25,940 553,819
HBOS 54,179 680,212
ING Groep NV 27,494 588,943
IntesaBci 116,992 440,348
JP Morgan Chase 10,900 385,424
Keycorp 17,600 489,104
Lloyds TSB Group 87,256 616,776
Mellon Financial 20,700 596,160
Morgan Stanley 15,800 873,424
National Australia Bank 25,655 536,870
Overseas Chinese Banking 41,000 283,013
Societe Generale Class A 7,479 598,867
Sovereign Bancorp 69,361 1,571,720
Wells Fargo 15,100 865,683
-----------
10,620,786
-----------
Building & Materials - 1.33%
Compagnie de Saint Gobain 12,800 572,614
Wharf Holdings 153,000 382,190
-----------
954,804
-----------
Business Services - 0.58%
+++Fieldstone Investments 144A 25,000 412,500
-----------
412,500
-----------
Chemicals - 3.44%
Air Products & Chemicals 11,000 527,340
Bayer 22,875 615,585
Dow Chemical 25,500 957,525
++Orica 39,363 366,862
-----------
2,467,312
-----------
Computers & Technology - 0.78%
Pitney Bowes 14,100 560,475
-----------
560,475
-----------
Consumer Products - 1.32%
Kimberly-Clark 10,000 542,200
Procter & Gamble 4,200 404,208
-----------
946,408
-----------
Electronics & Electrical Equipment - 1.43%
Emerson Electric 10,000 610,400
Hong Kong Electric 103,000 412,462
-----------
1,022,862
-----------
Energy - 4.96%
BP Amoco 51,154 356,968
ChevronTexaco 8,300 623,329
ConocoPhillips 9,821 557,244
Kerr-McGee 11,600 487,084
++Petro Geo Services ADR 398 14,721
Number of Market
Shares Value (U.S.$)
Common Stock (continued)
Energy (continued)
Royal Dutch Petroleum 13,709 $ 615,907
Sasol 27,194 344,738
Total Fina Elf 3,440 555,852
----------
3,555,843
----------
Food, Beverage & Tobacco - 4.38%
Foster's Group 178,521 568,382
General Mills 14,300 643,643
*Heinz (H.J.) 15,600 563,160
Kellogg 14,500 518,665
++Mitchells & Butlers 41,125 164,975
PepsiCo 14,200 683,304
----------
3,142,129
----------
Healthcare & Pharmaceuticals - 5.25%
Abbott Laboratories 12,500 552,500
Biomet 15,900 568,743
Bristol-Myers Squibb 22,200 584,971
Eisai Limited 11,900 301,520
GlaxoSmithKline 24,406 551,127
++Medco Health Solutions 1,254 45,683
Merck & Co. 10,400 422,240
Takeda Chemical Industries 7,900 302,958
Wyeth 11,000 433,400
----------
3,763,142
----------
Industrial Machinery - 1.47%
Brambles Industries 71,495 214,874
Caterpillar 11,000 836,550
----------
1,051,424
----------
Investment Companies - 0.87%
*Gladstone Capital 29,200 625,756
----------
625,756
----------
Leisure, Lodging & Entertainment - 0.53%
Intercontinental Hotels 41,125 379,991
----------
379,991
----------
Metals & Mining - 0.63%
Rio Tinto 18,880 452,318
----------
452,318
----------
Paper & Forest Products - 2.10%
Amcor 78,646 470,062
International Paper 16,400 610,244
Weyerhaeuser 7,500 427,500
----------
1,507,806
----------
Real Estate - 12.79%
AMB Property 18,300 575,718
Apartment Investment & Management 14,500 493,725
Camden Property Trust 10,000 420,400
Duke Realty 26,000 800,800
General Growth Properties 24,370 1,964,221
Liberty Property Trust 21,042 796,019
Pan Pacific Retail Properties 17,600 817,520
Prentiss Properties Trust 21,308 676,529
Ramco-Gershenson Properties 31,300 815,365
Reckson Associates Realty 28,100 674,400
Simon Property Group 8,000 379,600
Starwood Hotels & Resorts Worldwide 17,000 585,990
Sun Communities 4,400 165,132
----------
9,165,419
----------
5
Statement Delaware Investments Global Dividend and Income Fund, Inc.
OF NET ASSETS (CONTINUED)
Number of Market
Shares Value (U.S.$)
Common Stock (continued)
Retail - 2.31%
Boots 44,819 $ 548,438
Coles Myer 91,055 490,202
GUS 43,481 567,026
++*Kmart Holdings 1,553 47,289
----------
1,652,955
----------
Telecommunications - 3.59%
BellSouth 12,000 312,360
Telecom Corporation of New Zealand 189,000 628,008
Telefonica 45,877 593,923
Telstra 172,136 614,069
Verizon Communications 13,054 427,780
----------
2,576,140
----------
Transportation & Shipping - 1.22%
Union Pacific 10,000 636,800
West Japan Railway 63 238,724
----------
875,524
----------
Utilities - 3.83%
BG Group 113,689 534,769
Dominion Resources 8,900 536,403
Electrabel 1,376 404,106
Hong Kong & China Gas 104,000 156,007
Iberdrola 29,226 504,128
RWE 19,081 613,666
----------
2,749,079
----------
Total Common Stock (cost $41,807,883) 49,577,976
----------
Convertible Preferred Stock - 1.77%
Aerospace & Defense - 0.55%
Northrop Grumman 7.25% 3,850 394,279
----------
394,279
----------
Banking, Finance & Insurance - 0.55%
Chubb 7.00% 4,000 110,000
Travelers Property Casualty 4.50% 12,000 285,720
----------
395,720
----------
Environmental Services - 0.39%
Allied Waste Industries 6.25% 4,000 282,560
----------
282,560
----------
Transportation & Shipping - 0.28%
+Union Pacific Capital Trust
TIDES 144A 6.25% 3,926 199,735
----------
199,735
----------
Total Convertible Preferred Stock
(cost $1,181,300) 1,272,294
----------
Preferred Stock - 2.40%
Cable, Media & Publishing - 0.12%
*CSC Holdings 11.75% 800 84,600
----------
84,600
----------
Metals & Mining - 0.01%
++Weirton Steel 8,550 7,439
----------
7,439
----------
Real Estate - 1.72%
Equity Inns Series B 8.75% 10,000 266,500
LaSalle Hotel Properties 10.25% 23,500 652,161
Number of Market
Shares Value (U.S.$)
Preferred Stock (continued)
Real Estate (continued)
Ramco-Gershenson Properties 9.50% 11,500 $ 316,538
-----------
1,235,199
-----------
Utilities - 0.55%
Public Service Enterprise Group 10.25% 6,800 394,400
-----------
394,400
-----------
Total Preferred Stock (cost $1,594,609) 1,721,638
-----------
Principal
Amount
Convertible Bonds - 3.19%
Computers & Technology - 0.39%
+Mercury Interactive 144A 4.75% 7/1/07 USD 275,000 277,063
-----------
277,063
-----------
Consumer Products - 0.08%
Eastman Kodak 3.375% 10/15/33 USD 50,000 54,250
-----------
54,250
-----------
Leisure, Lodging & Entertainment - 0.20%
+Regal Entertainment
144A 3.75% 5/15/08 USD 130,000 146,575
-----------
146,575
-----------
Miscellaneous - 0.16%
+Tyco International Group
144A 2.75% 1/15/18 USD 100,000 116,500
-----------
116,500
-----------
Real Estate - 0.48%
Meristar Hospitality 9.50% 4/1/10 USD 300,000 347,625
-----------
347,625
-----------
Retail - 1.02%
+Gap 144A 5.75% 3/15/09 USD 500,000 733,125
-----------
733,125
-----------
Telecommunications - 0.48%
+Nextel Partners 144A 1.50% 11/15/08 USD 200,000 342,750
-----------
342,750
-----------
Transportation & Shipping - 0.08%
+Expressjet Holdings 144A 4.25% 8/1/23 USD 50,000 57,375
-----------
57,375
-----------
Utilities - 0.30%
+Centerpoint Energy 144A 3.75% 5/15/23 USD 200,000 213,250
-----------
213,250
-----------
Total Convertible Bonds (cost $1,804,663) 2,288,513
-----------
Bonds - 42.64%
Aerospace & Defense - 0.13%
+Armor Holdings 144A 8.25% 8/15/13 USD 90,000 96,300
-----------
96,300
-----------
Agency Obligations - 1.62%
Fannie Mae Global 2.125% 10/9/07 JPY 120,000,000 1,164,840
-----------
1,164,840
-----------
Automobiles & Automotive Parts - 0.48%
+Advanced Accessory Systems
144A 10.75% 6/15/11 USD 40,000 43,400
General Motors 8.375% 7/15/33 USD 65,000 71,013
+Metaldyne 144A 10.00% 11/1/13 USD 50,000 48,250
6
Statement Delaware Investments Global Dividend and Income Fund, Inc.
OF NET ASSETS (CONTINUED)
Principal Market
Amount Value (U.S.$)
Bonds (continued)
Automobiles & Automotive Parts (continued)
+*UIS 144A 9.375% 6/15/13 USD 170,000 $ 181,900
[CHECK MARK]Venture Holdings Trust 12.00% 6/1/09 USD 95,000 475
---------
345,038
---------
Banking, Finance & Insurance - 2.49%
+Crum & Forster 144A 10.375% 6/15/13 USD 60,000 65,700
+Eircom Funding 144A 8.25% 8/15/13 USD 40,000 43,600
+Farmers Exchange Capital
144A 7.20% 7/15/48 USD 70,000 61,289
Finova Group 7.50% 11/15/09 USD 40,000 22,400
Oesterreich Kontrollbank
1.80% 3/22/10 JPY 150,000,000 1,457,418
+Poster Financial Group
144A 8.75% 12/1/11 USD 60,000 61,725
Qwest Capital Funding 5.875% 8/3/04 USD 45,000 45,225
TIG Holdings 8.125% 4/15/05 USD 35,000 35,744
---------
1,793,101
---------
Building & Materials - 0.74%
+Beazer Homes USA
144A 6.50% 11/15/13 USD 20,000 20,000
DR Horton 9.75% 9/15/10 USD 45,000 53,213
+Lone Star Industries
144A 8.85% 6/15/05 USD 60,000 62,925
Schuler Homes 10.50% 7/15/11 USD 115,000 132,106
Standard Pacific 9.25% 4/15/12 USD 75,000 83,625
*Technical Olympic USA
10.375% 7/1/12 USD 105,000 117,075
WCI Communities 10.625% 2/15/11 USD 55,000 61,875
---------
530,819
---------
Business Services - 0.08%
Brickman Group 11.75% 12/15/09 USD 50,000 57,750
---------
57,750
---------
Cable, Media & Publishing - 2.01%
Charter Communications
10.75% 10/1/09 USD 320,000 275,200
*CSC Holdings 10.50% 5/15/16 USD 150,000 166,500
+Hollinger 144A 11.875% 3/1/11 USD 40,000 44,000
Insight Communications
12.25% 2/15/10 USD 215,000 171,731
Insight Midwest 10.50% 11/1/10 USD 10,000 10,950
*Lodgenet Entertainment
9.50% 6/15/13 USD 115,000 125,638
*Mediacom Broadband 11.00% 7/15/13 USD 120,000 129,300
*PanAmSat 8.50% 2/1/12 USD 85,000 92,863
PEI Holdings 11.00% 3/15/10 USD 45,000 52,481
Rogers Cablesystems 10.00% 3/15/05 USD 100,000 109,000
+Sheridan Acquisition 144A
10.25% 8/15/11 USD 65,000 68,900
Vertis
10.875% 6/15/09 USD 45,000 46,350
13.50% 12/7/09 USD 25,000 23,500
XM Satellite Radio 12.00% 6/15/10 USD 110,000 123,200
---------
1,439,613
---------
Chemicals - 0.78%
*Huntsman International
9.875% 3/1/09 USD 50,000 53,875
10.125% 7/1/09 USD 70,000 70,175
+*Johnsondiversey 144A 10.67% 5/15/13 USD 85,000 64,813
Lyondell Chemical 9.625% 5/1/07 USD 60,000 62,100
Principal Market
Amount Value (U.S.$)
Bonds (continued)
Chemicals (continued)
+*Rhodia SA 144A 8.875% 6/1/11 USD 155,000 $137,950
Solutia
*6.72% 10/15/37 USD 200,000 155,000
11.25% 7/15/09 USD 15,000 13,575
--------
557,488
--------
Computers & Technology - 0.59%
*Amkor Technologies 7.75% 5/15/13 USD 40,000 43,000
*ChipPac International 12.75% 8/1/09 USD 30,000 33,450
Cooperative Computing
10.50% 6/15/11 USD 45,000 49,050
Lone Star Technologies 9.00% 6/1/11 USD 30,000 29,250
Northern Telecom Capital
7.875% 6/15/26 USD 185,000 182,225
+Stratus Technologies
144A 10.375% 12/1/08 USD 85,000 87,550
--------
424,525
--------
Consumer Products - 0.58%
*American Greetings 11.75% 7/15/08 USD 110,000 128,150
+Hines Nurseries 144A 10.25% 10/1/11 USD 40,000 43,500
Jafra Cosmetics 10.75% 5/15/11 USD 75,000 80,625
*Remington Arms 10.50% 2/1/11 USD 50,000 52,250
Salton 10.75% 12/15/05 USD 105,000 108,150
--------
412,675
--------
Consumer Services - 0.22%
*Alderwoods Group 12.25% 1/2/09 USD 100,000 112,500
Corrections Corporation of America
*7.50% 5/1/11 USD 10,000 10,525
+144A 7.50% 5/1/11 USD 30,000 31,575
--------
154,600
--------
Energy - 0.89%
*Bluewater Finance 10.25% 2/15/12 USD 60,000 61,350
Citgo Petroleum 11.375% 2/1/11 USD 90,000 104,400
+*Dynegy Holdings
144A 10.125% 7/15/13 USD 150,000 166,124
Hanover Equipment Trust
8.50% 9/1/08 USD 55,000 56,375
+Hilcorp Energy/Finance
144A 10.50% 9/1/10 USD 45,000 49,275
+Massey Energy
144A 6.625% 11/15/10 USD 60,000 60,900
Petro Gas Services
8.00% 11/5/06 USD 7,032 7,173
10.00% 11/5/10 USD 50,982 53,786
*Sonat 7.625% 7/15/11 USD 35,000 30,450
Transcontinental Gas Pipeline
6.25% 1/15/08 USD 45,000 46,688
--------
636,521
--------
Environmental Services - 0.25%
Casella Waste 9.75% 2/1/13 USD 45,000 50,625
IESI 10.25% 6/15/12 USD 115,000 125,350
--------
175,975
--------
Food, Beverage & Tobacco - 1.03%
B&G Foods 9.625% 8/1/07 USD 145,000 150,074
+Commonwealth Brands
144A 10.625% 9/1/08 USD 125,000 135,625
*DiGiorgio Foods 10.00% 6/15/07 USD 95,000 90,013
+Le-Natures 144A 9.00% 6/15/13 USD 60,000 62,400
7
Statement Delaware Investments Global Dividend and Income Fund, Inc.
OF NET ASSETS (CONTINUED)
Principal Market
Amount Value (U.S.$)
Bonds (continued)
Food, Beverage & Tobacco (continued)
+National Beef Packing
144A 10.50% 8/1/11 USD 100,000 $ 110,000
+*Pinnacle Foods 144A 8.25% 12/1/13 USD 110,000 113,300
+Seminis Vegtable
144A 10.25% 10/1/13 USD 70,000 74,638
-----------
736,050
-----------
Foreign Government - 22.78%
Belgium Government
5.75% 9/28/10 EUR 1,200,000 1,576,496
Canadian Government
0.70% 3/20/06 JPY 150,000,000 1,387,362
Deutschland Republic
5.00% 7/4/11 EUR 1,550,000 1,948,390
6.25% 1/4/24 EUR 350,000 488,164
6.50% 10/14/05 EUR 200,000 255,163
France Government Bond O.A.T
4.00% 10/25/09 EUR 260,000 312,191
4.00% 4/25/13 EUR 900,000 1,043,774
5.50% 4/25/10 EUR 1,000,000 1,294,875
Hellenic Republic 8.60% 3/26/08 EUR 200,000 285,950
Poland Government
5.00% 10/24/13 PLZ 5,100,000 1,095,469
5.75% 6/24/08 PLZ 700,000 166,619
8.50% 2/12/05 PLZ 1,200,000 313,647
Queensland Treasury
6.00% 7/14/09 AUD 1,050,000 753,089
6.00% 8/14/13 AUD 600,000 432,448
Republic of Austria 4.00% 7/15/09 EUR 450,000 541,705
Republic of Italy 3.75% 6/8/05 JPY 150,000,000 1,445,522
Republic of Peru 8.75% 11/21/33 USD 65,000 64,448
Sweden Government
5.00% 1/28/09 SEK 7,000,000 949,063
5.50% 10/8/12 SEK 5,000,000 690,518
6.75% 5/5/14 SEK 1,650,000 249,106
United Mexican States Global
7.375% 3/13/08 EUR 800,000 1,047,185
-----------
16,341,184
-----------
Healthcare & Pharmaceuticals - 0.25%
*Alliance Imaging 10.375% 4/15/11 USD 65,000 67,763
Team Health 12.00% 3/15/09 USD 100,000 108,750
-----------
176,513
-----------
Industrial Machinery - 0.09%
*Foster Wheeler 6.75% 11/15/05 USD 105,000 63,000
-----------
63,000
-----------
Leisure, Lodging & Entertainment - 0.61%
+Gaylord Entertainment
144A 8.00% 11/15/13 USD 55,000 57,475
+Hard Rock Hotel 144A 8.875% 6/1/13 USD 60,000 63,600
Herbst Gaming 10.75% 9/1/08 USD 65,000 73,125
+Host Marriott 144A 7.125% 11/1/13 USD 25,000 24,875
+Imax 144A 9.625% 12/1/10 USD 60,000 62,400
Royal Caribbean Cruises
6.875% 12/1/13 USD 35,000 35,088
7.50% 10/15/27 USD 125,000 119,843
-----------
436,406
-----------
Metals & Mining - 0.28%
*AK Steel 7.75% 6/15/12 USD 70,000 47,600
United States Steel 10.75% 8/1/08 USD 50,000 55,875
Principal Market
Amount Value (U.S.$)
Bonds (continued)
Metals & Mining (continued)
#*Weirton Steel 10.00% 4/1/08 USD 522,500 $ 99,275
--------
202,750
--------
Packaging & Containers - 0.44%
AEP Industries 9.875% 11/15/07 USD 50,000 50,000
Portola Packaging 10.75% 10/1/05 USD 25,000 24,875
Radnor Holdings 11.00% 3/15/10 USD 60,000 55,050
+Silgan Holdings 144A 6.75% 11/15/13 USD 110,000 110,550
+Tekni-Plex 144A 8.75% 11/15/13 USD 70,000 71,925
--------
312,400
--------
Paper & Forest Products - 0.95%
Ainsworth Lumber
12.50% 7/15/07 USD 95,000 110,675
13.875% 7/15/07 USD 20,000 23,100
Consolidated Container
10.125% 7/15/09 USD 90,000 54,450
Georgia Pacific
8.125% 6/15/23 USD 70,000 69,125
8.625% 4/30/25 USD 55,000 56,100
9.875% 11/1/21 USD 45,000 46,800
+Millar Western 144A 7.75% 11/15/13 USD 125,000 127,655
Pacifica Papers 10.00% 3/15/09 USD 35,000 37,188
Smurfit Capital 7.50% 11/20/25 USD 125,000 120,000
Tembec Industries 8.625% 6/30/09 USD 35,000 34,913
--------
680,006
--------
Real Estate - 0.11%
Tanger Properties 9.125% 2/15/08 USD 70,000 76,825
--------
76,825
--------
Restaurants - 0.19%
Avado Brands 9.75% 6/1/06 USD 45,000 19,575
*Denny's 12.75% 9/30/07 USD 50,000 51,750
+O'Charleys 144A 9.00% 11/1/13 USD 65,000 65,488
--------
136,813
--------
Retail - 0.39%
*J Crew 10.375% 10/15/07 USD 100,000 103,750
*Office Depot 10.00% 7/15/08 USD 100,000 120,000
Petco Animal Supplies 10.75% 11/1/11 USD 45,000 53,325
--------
277,075
--------
Telecommunications - 1.31%
+Alaska Communications Systems
144A 9.875% 8/15/11 USD 75,000 79,125
+American Tower 144A 7.25% 12/1/11 USD 60,000 60,450
+Centennial Cellular Operating
144A 10.125% 6/15/13 USD 95,000 100,700
+Cincinnati Bell 144A
7.25% 7/15/13 USD 45,000 47,025
8.375% 1/15/14 USD 25,000 26,313
Crown Castle International
*10.75% 8/1/11 USD 40,000 45,000
+144A 7.50% 12/1/13 USD 50,000 49,750
+Level 3 Finance 144A 10.75% 10/15/11 USD 75,000 78,750
+*MetroPCS 144A 10.75% 10/1/11 USD 80,000 78,400
Nextel Partners 12.50% 11/15/09 USD 30,000 34,800
+*Qwest Services 144A 13.50% 12/15/10 USD 65,000 76,781
Time Warner Telecommunications
9.75% 7/15/08 USD 215,000 218,225
Western Wireless 9.25% 7/15/13 USD 40,000 41,800
--------
937,119
--------
8
Statement Delaware Investments Global Dividend and Income Fund, Inc.
OF NET ASSETS (CONTINUED)
Principal Market
Amount Value (U.S.$)
Bonds (continued)
Textiles, Apparel & Furniture - 0.14%
+Warnaco 144A 8.875% 6/15/13 USD 100,000 $ 102,000
-----------
102,000
-----------
Transportation & Shipping - 0.85%
Hornbeck Offshore Services
10.625% 8/1/08 USD 50,000 55,125
Kansas City Southern Railway
9.50% 10/1/08 USD 85,000 95,731
Ocean Rig Norway 10.25% 6/1/08 USD 65,000 59,475
+OMI 144A 7.625% 12/1/13 USD 60,000 60,600
*Overseas Shipholding Group
8.25% 3/15/13 USD 95,000 101,769
+Seabulk International
144A 9.50% 8/15/13 USD 100,000 104,750
Stena AB 9.625% 12/1/12 USD 120,000 134,400
-----------
611,850
-----------
Utilities - 2.36%
+Allegheny Energy Supply
Statutory Trust 2001 144A
Series A 10.25% 11/15/07 USD 75,000 78,000
Aquila 7.95% 2/1/11 USD 60,000 64,200
Avista 9.75% 6/1/08 USD 100,000 117,499
Calpine
8.25% 8/15/05 USD 40,000 37,600
*10.50% 5/15/06 USD 110,000 102,850
+144A 8.75% 7/15/13 USD 120,000 111,300
Cogentrix Energy 8.75% 10/15/08 USD 85,000 86,169
Edison Mission 9.875% 4/15/11 USD 40,000 40,600
El Paso Natural Gas
7.625% 8/1/10 USD 65,000 65,650
*7.875% 6/15/12 USD 60,000 53,100
Elwood Energy 8.159% 7/5/26 USD 33,090 33,627
+Gemstone Investor
144A 7.71% 10/31/04 USD 45,000 45,280
Homer City Fund 8.137% 10/1/19 USD 40,000 42,350
Illinois Power 7.50% 6/15/09 USD 100,000 109,000
Midland Funding II 11.75% 7/23/05 USD 27,493 29,830
Midwest Generation 8.30% 7/2/09 USD 100,000 102,000
[CHECK MARK]Mirant Americas Generation
7.625% 5/1/06 USD 80,000 68,000
+MSW Energy Holdings/Finance II
144A 7.375% 9/1/10 USD 60,000 62,100
Orion Power Holdings 12.00% 5/1/10 USD 65,000 76,050
PSEG Energy Holdings 7.75% 4/16/07 USD 50,000 51,813
+Reliant Resource 144A 9.50% 7/15/13 USD 50,000 50,750
Southern Natural Gas 8.875% 3/15/10 USD 35,000 38,763
Tennessee Gas Pipeline
8.375% 6/15/32 USD 70,000 73,325
+USGen New England
144A 7.459% 1/2/15 USD 50,000 22,185
*Williams Companies 8.125% 3/15/12 USD 120,000 130,199
-----------
1,692,240
-----------
Total Bonds
(cost $28,201,241) 30,571,476
-----------
Principal Market
Amount Value (U.S.$)
Municipal Bonds - 0.07%
New Jersey Economic Development
Authority Continental Airlines Project
6.25% 9/15/29 USD 60,000 $ 51,068
----------
Total Municipal Bonds (cost $50,884) 51,068
----------
Number of
Shares
Warrants - 0.06%
+++American Tower 144A 35 4,497
+++Solutia 144A 130 2,405
++XM Satellite Radio 20 36,000
----------
Total Warrants (cost $17,994) 42,902
----------
Principal
Amount
Short-Term Securities - 10.16%
**U.S. Treasury Bills 0.905% 1/8/04 USD 7,290,000 7,283,257
----------
Total Short-Term Securities
(cost $7,283,257) 7,283,257
----------
Total Market Value of Securities Before
Securities Lending Collateral - 129.45%
(cost $81,941,831) 92,809,124
----------
Securities Lending Collateral*** - 5.02%
Short-Term Investments
ABN AMRO Bank Chicago
1.06% 6/07/04 136,585 136,577
ABN AMRO Bank Tokyo
1.10% 1/13/04 39,025 39,025
Allied Irish Dublin 1.12% 1/20/04 156,098 156,101
Credit Suisse First Boston
1.60% 12/13/04 156,101 156,101
Deutsche Bank Financial
1.071% 1/16/04 156,126 156,156
FHLMC 1.12% 1/15/04 88,144 88,372
FNMA 1.035% 1/29/04 975,666 975,616
General Electric Capital
1.13% 10/04/04 58,589 58,689
Goldman Sachs Group LP
1.193% 12/15/03 136,589 136,588
HBOS Treasury Services PLC
1.09%12/12/03 156,099 156,101
Keybank NA 1.146% 1/26/04 78,063 78,089
Marsh & McLennan 1.291% 6/15/04 100,382 103,239
Merrill Lynch Mortgage Capital
1.163% 12/08/03 156,101 156,101
Morgan Stanley Dean Witter
1.10% 12/01/03 653,013 653,012
1.22% 12/28/04 38,962 39,025
1.30% 3/19/04 97,500 97,563
Swiss Re Financial 1.103% 1/15/04 97,424 97,292
Wachovia Bank NA 1.127% 11/15/04 156,104 156,239
Wilmington Trust 1.11% 1/22/04 156,097 156,101
----------
Total Securities Lending Collateral
(cost $3,595,987) 3,595,987
----------
9
Statement Delaware Investments Global Dividend and Income Fund, Inc.
OF NET ASSETS (CONTINUED)
Total Market Value of Securities - 134.47%
(cost $85,537,818) $96,405,111
Obligation to Return Securities
Lending Collateral - (5.02%)*** (3,595,987)
Borrowing under Line of Credit - (29.29%) (21,000,000)
Liabilities Net of Receivables and
Other Assets - (0.16%) (116,215)
-----------
Net Assets Applicable to 5,985,582
Shares Outstanding; Equivalent
to $11.98 per share - 100.00% $71,692,909
===========
Components of Net Assets at November 30, 2003:
Common stock, $0.01 par value, 500,000,000
shares authorized to the Fund $75,178,870
Treasury stock, 665,065 shares at cost (8,599,291)
Undistributed net investment income (a) 31,885
Accumulated net realized loss on investments (5,771,372)
Net unrealized appreciation of investments
and foreign currencies 10,852,817
-----------
Total net assets $71,692,909
===========
(a) Undistributed net investment income includes net realized gains (losses) on
foreign currencies. Net realized gains (losses) on foreign currencies are
taxable as net investment income in accordance with provisions of the
Internal Revenue Code.
++Non-income producing security for the year ended November 30, 2003.
[CHECK MARK]Non-income producing security. Security is currently in default.
+Security exempt from registration under Rule 144A of the Securities Act of
1933. See Note 9 in "Notes to Financial Statements."
#Step coupon bond.
*Fully or partially on loan.
**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.
***See Note 8 in "Notes to Financial Statements."
Includes $3,546,993 of securities loaned.
+++Principal amount is stated in the currency in which each bond is denominated.
Summary of Abbreviations:
ADR - American Depositary Receipts
AUD - Australian Dollar
EUR - European Monetary Unit
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
JPY - Japanese Yen
PLZ - Polish Zloty
SEK - Swedish Krona
TIDES - Term Income Deferred Equity Securities
USD - U.S. Dollar
10
Statement Delaware Investments Global Dividend and Income Fund, Inc.
OF OPERATIONS Year Ended November 30, 2003
Investment Income:
Interest $2,707,512
Dividends 1,978,884
Securities lending income 14,351
Foreign tax withheld (64,031) $ 4,636,716
---------- -----------
Expenses:
Management fees 599,107
Accounting and administration expenses 100,000
Professional fees 66,901
Reports to shareholders 50,880
Custodian fees 41,870
NYSE fees 25,123
Transfer agent fees and expenses 18,554
Directors' fees 8,520
Other 17,105
----------
Total operating expenses (before interest expense) 928,060
Interest expense 391,704
-----------
Total operating expenses (after interest expense) 1,319,764
Less expenses paid indirectly (1,549)
-----------
Total expenses 1,318,215
-----------
Net Investment Income 3,318,501
-----------
Net Realized and Unrealized Gain (Loss) on Investments
and Foreign Currencies:
Net realized gain (loss) on:
Investments (522,616)
Foreign currencies 1,979,966
-----------
Net realized gain 1,457,350
Net change in unrealized appreciation/depreciation of
investments and foreign currencies 13,881,480
-----------
Net Realized and Unrealized Gain on Investments and
Foreign Currencies 15,338,830
-----------
Net Increase in Net Assets Resulting from Operations $18,657,331
===========
See accompanying notes
11
Statements Delaware Investments Global Dividend and Income Fund, Inc.
OF CHANGES IN NET ASSETS
Year Ended
11/30/03 11/30/02
Increase (Decrease) in Net Assets from Operations:
Net investment income $ 3,318,501 $ 2,981,703
Net realized gain (loss) on investments and foreign currencies 1,457,350 (4,643,149)
Net change in unrealized appreciation/depreciation of investments and foreign currencies 13,881,480 3,106,527
----------- -----------
Net increase in net assets resulting from operations 18,657,331 1,445,081
----------- -----------
Dividends and Distributions to Shareholders from:
Net investment income (5,492,967) (2,182,468)
Return of capital (994,113) (6,609,672)
----------- -----------
(6,487,080) (8,792,140)
----------- -----------
Net Increase (Decrease) in Net Assets 12,170,251 (7,347,059)
Net Assets:
Beginning of year 59,522,658 66,869,717
----------- -----------
End of year $71,692,909 $59,522,658
=========== ===========
See accompanying notes
Statement Delaware Investments Global Dividend and Income Fund, Inc.
OF CASH FLOWS Year Ended November 30, 2003
Net Cash (Including Foreign Currency) Provided by Operating Activities:
Net increase in net assets resulting from operations $ 18,657,331
------------
Adjustments to reconcile net increase in net assets from operations to cash provided by operating activities:
Amortization of premium and discount on investments (222,241)
Net proceeds from investment transactions 2,145,995
Net realized loss on investment transactions 522,616
Net realized gain on foreign currencies (1,979,966)
Net change in unrealized appreciation/depreciation of investments and foreign currencies (13,881,480)
Decrease in receivable for investments sold 593,282
Decrease in interest and dividends receivable 113,934
Decrease in payable for investments purchased (190,054)
Increase in distribution payable 478,282
Decrease in interest payable (6,328)
Increase in accrued expenses and other liabilities 16,411
------------
Total adjustments (12,409,549)
------------
Net cash provided by operating activities 6,247,782
------------
Cash flows used for financing activities:
Cash dividends and distributions paid (6,487,080)
------------
Net cash used for financing activities (6,487,080)
------------
Effect of exchange rates on cash 125,795
------------
Net decrease in cash (113,503)
Cash at beginning of year 88,253
------------
Cash (overdraft) at end of year $ (25,250)
============
Cash paid for interest $ 398,032
============
See accompanying notes
12
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.
- --------------------------------------------------------------------------------------------------------------------------------
Year Ended
11/30/03 11/30/02(3) 11/30/01 11/30/00 11/30/99
Net asset value, beginning of period $ 9.940 $11.170 $11.770 $13.920 $15.700
Income (loss) from investment operations:
Net investment income(4) 0.554 0.499 0.620 0.700 0.930
Net realized and unrealized gain (loss) on
investments and foreign currencies 2.570 (0.260) 0.280 (1.350) (1.070)
------- ------- ------- ------- -------
Total from investment operations 3.124 0.239 0.900 (0.650) (0.140)
------- ------- ------- ------- -------
Less dividends and distributions from:
Net investment income (0.918) (0.365) (0.195) (0.530) (0.860)
Net realized gain on investments -- -- (0.084) (0.470) (0.780)
Return of capital (0.166) (1.104) (1.221) (0.500) --
------- ------- ------- ------- -------
Total dividends and distributions (1.084) (1.469) (1.500) (1.500) (1.640)
------- ------- ------- ------- -------
Net asset value, end of period $11.980 $ 9.940 $11.170 $11.770 $13.920
======= ======= ======= ======= =======
Market value, end of period $11.900 $10.400 $12.400 $10.380 $11.750
======= ======= ======= ======= =======
Total return based on:(1)
Market value 25.92% (5.49%) 34.52% 0.29% (17.00%)
Net asset value 32.63% 0.28% 6.91% (4.04%) (0.57%)
Ratios and supplemental data:
Net assets, end of period (000 omitted) $71,693 $59,523 $66,870 $70,420 $92,601
Ratio of expenses to average net assets 2.04% 2.26% 3.31% 3.45% 2.69%
Ratio of expenses to adjusted average
net assets (before interest expense)(2) 1.08% 1.06% 1.10% 1.04% 1.00%
Ratio of interest expense to adjusted average net assets(2) 0.46% 0.64% 1.35% 1.62% 1.15%
Ratio of net investment income to average net assets 5.14% 4.69% 5.18% 5.34% 6.14%
Ratio of net investment income to adjusted average net assets(2) 3.88% 3.53% 3.84% 4.11% 4.92%
Portfolio turnover 99% 69% 47% 43% 58%
Leverage Analysis:
Debt outstanding at end of period (000 omitted) $21,000 $21,000 $25,000 $25,000 $25,000
Average daily balance of debt outstanding (000 omitted) $21,000 $21,603 $25,000 $25,000 $25,000
Average daily balance of shares outstanding (000 omitted) 5,986 5,986 5,986 6,389 6,651
Average debt per share $3.51 $3.61 $4.18 $3.91 $3.76
Asset coverage per $1,000 of debt outstanding at end of period $4,414 $3,834 $3,675 $3,817 $4,704
(1) Total investment return is calculated assuming a purchase of common stock on
the opening of the first day and a sale on the closing of the last day of
each period reported. Dividends and distributions, if any, are assumed for
the purpose 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
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 adopted the provisions of
the AICPA Audit and Accounting Guide for Investment Companies that requires
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 shares 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 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.
See accompanying notes.
13
Notes Delaware Investments Global Dividend and
TO FINANCIAL STATEMENTS Income Fund, Inc.
November 30, 2003
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 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. Securities traded on the Nasdaq Stock Market, Inc. (NASDAQ)
are valued in accordance with the NASDAQ Official Closing Price, which may not
be the last sales price. 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 by or 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.
Effective September 1, 2003, the current annualized rate is $0.96 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 provided for 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. The amount of these expenses was approximately $1,549 for the year
ended November 30, 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 year ended November
30, 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 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.
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 November 30, 2003, the Fund had liabilities payable to affiliates as follows:
Investment management fee payable to DMC $13,735
Accounting, administration and
other expenses payable to DSC 9,316
Other expenses payable to DMC and affiliates* 27,679
*DMC, as part of its administrative services, pays Fund operating expenses on
behalf of the Fund and is reimbursed on a periodic basis. Such expenses include
items such as printing of shareholder reports, professional fees, stock
exchange fees, custodian fees and directors fees.
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.
14
Notes Delaware Investments Global Dividend and Income Fund, Inc.
TO FINANCIAL STATEMENTS (CONTINUED)
3. Investments
For the year ended November 30, 2003, the Fund made purchases of $81,548,560 and
sales of $89,622,589 of investment securities other than U.S. government
securities and short-term investments.
At November 30, 2003, the cost for federal income taxes purposes was
$81,911,191. At November 30, 2003, the net unrealized appreciation was
$10,897,933 of which $14,453,167 related to unrealized appreciation of
investments and $3,555,234 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 years ended November 30, 2003 and 2002 were as
follows:
2003 2002
Ordinary Income $5,492,967 $2,182,468
Return of capital 994,113 6,609,672
---------- ----------
Total $6,487,080 $8,792,140
========== ==========
As of November 30, 2003, the components of net assets on a tax basis were as
follows:
Shares of beneficial interest $66,579,579
Capital loss carryforwards (5,802,012)
Unrealized appreciation on
investments and foreign currencies 10,915,342
-----------
Net assets $71,692,909
===========
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, $3,986,959 expires
in 2010 and $721,813 expires in 2011.
5. Capital Stock
The Fund did not have any transactions in common shares during the year ended
November 30, 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
$25,000,000 that expires on January 23, 2004. The Fund intends on renewing the
Agreement for another year. At November 30, 2003, the par value of loans
outstanding was $21,000,000 at a variable interest rate of 1.65%. During the
year, the average daily balance of loans outstanding was $21,000,000 at a
weighted average interest rate of approximately 1.84%. The maximum amount of
loans outstanding at any time during the year was $21,000,000. Interest on
borrowings is based on market rates in effect at the time of borrowing. The
commitment fee is computed at the rate of 0.15% per annum on the unused balance.
For the year ended November 30, 2003, the Fund was charged a commitment fee of
$6,000 which is included in "custodian fees" on the Statement of Operations.
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 November
30, 2003:
Settlement Unrealized
Contracts to Deliver In Exchange for Date Depreciation
- -------------------- --------------- ---------- ------------
1,448,000 US $2,446,345 1/30/04 ($31,885)
British Pounds
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. The Fund continues to
record dividends on the securities loaned and is subject to change in fair value
of the securities loaned that may occur during the term of the loan. The Fund
has the right under the Lending Agreement to recover the securities from the
borrower on demand. The security lending agent and the borrower retain a portion
of the earnings from the collateral investments. The Fund records security
lending income net of such allocation.
At November 30, 2003, the market value of securities on loan was $3,546,993, for
which cash collateral was received and invested in accordance with the Lending
Agreement. Such investments are presented on the Statement of Net Assets under
the caption "Securities Lending Collateral."
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
15
Notes Delaware Investments Global Dividend and Income Fund, Inc.
TO FINANCIAL STATEMENTS (CONTINUED)
9. Credit and Market Risks (continued)
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, Inc. 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 year ended November 30,
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. Geographic Disclosure
As of November 30, 2003, the Fund's geographic diversification (based on the
issuer of each security's domicile) of its investments portfolio before
securities lending collateral was as follows:
Percentage
Country Market Value of Net Assets
- --------------------------------------------------------------------------------
United States $55,471,143 59.77%
- --------------------------------------------------------------------------------
Japan 6,298,345 6.79%
- --------------------------------------------------------------------------------
Britain 5,825,651 6.28%
- --------------------------------------------------------------------------------
France 4,378,173 4.72%
- --------------------------------------------------------------------------------
Australia 4,231,983 4.56%
- --------------------------------------------------------------------------------
Germany 3,920,968 4.22%
- --------------------------------------------------------------------------------
Belgium 1,980,603 2.13%
- --------------------------------------------------------------------------------
Sweden 1,888,686 2.04%
- --------------------------------------------------------------------------------
Poland 1,575,735 1.70%
- --------------------------------------------------------------------------------
Spain 1,511,379 1.63%
- --------------------------------------------------------------------------------
Netherlands 1,204,851 1.30%
- --------------------------------------------------------------------------------
Mexico 1,047,185 1.13%
- --------------------------------------------------------------------------------
Hong Kong 950,659 1.02%
- --------------------------------------------------------------------------------
New Zealand 628,009 0.68%
- --------------------------------------------------------------------------------
Austria 541,705 0.58%
- --------------------------------------------------------------------------------
Italy 440,348 0.47%
- --------------------------------------------------------------------------------
South Africa 344,738 0.37%
- --------------------------------------------------------------------------------
Greece 285,950 0.31%
- --------------------------------------------------------------------------------
Singapore 283,013 0.30%
- --------------------------------------------------------------------------------
Total $92,809,124 100.00%
- --------------------------------------------------------------------------------
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.
11. 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 January of each
year. Please consult your tax advisor for proper treatment of this information.
For the fiscal year ended November 30, 2003, the Fund designates distributions
paid during the year as follows:
(A) (B)
Long-Term Ordinary (C)
Capital Gains Income Return of Total (D)
Distributions Distributions Capital Distribution Qualifying
(Tax Basis) (Tax Basis) (Tax Basis) (Tax Basis) Dividends(1)
- ------------- ------------- ---------- ------------ ------------
-- 85% 15% 100% 5%
(A) (B) and (C) are based on a percentage of the Fund's total distributions.
(D) is based on a percentage of ordinary income of the Fund.
(1) Qualifying dividends represent dividends which qualify for the corporate
dividends received deductions.
For the fiscal year ended November 30, 2003 certain dividends may be subject to
a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief
Reconciliation Act of 2003. The Fund intends to designate $961,420 to be taxed
at a maximum rate of 15%. Complete information will be computed and reported in
conjunction with your 2003 Form 1099-DIV.
12. Proxy Results (Unaudited)
The Fund held its Annual Meeting of Shareholders on August 14, 2003. At the
Annual Meeting, the Fund's shareholders elected nine Directors. The results of
the voting at the meeting were as follows:
Shares Shares Shares
Nominee Voted For Voted Against Voted Abstain
- --------------------------------------------------------------------------------
Jude T. Driscoll 5,278,424 73,178 --
- --------------------------------------------------------------------------------
David K. Downes 5,279,392 72,210 --
- --------------------------------------------------------------------------------
Walter P. Babich 5,273,322 78,280 --
- --------------------------------------------------------------------------------
John H. Durham 5,276,873 74,729 --
- --------------------------------------------------------------------------------
John A. Fry 5,278,727 72,875 --
- --------------------------------------------------------------------------------
Anthony D. Knerr 5,279,199 72,403 --
- --------------------------------------------------------------------------------
Ann R. Leven 5,277,993 73,609 --
- --------------------------------------------------------------------------------
Thomas F. Madison 5,278,199 73,403 --
- --------------------------------------------------------------------------------
Janet L. Yeomans 5,278,937 72,665 --
- --------------------------------------------------------------------------------
16
Report
OF INDEPENDENT AUDITORS
To the Shareholders and Board of Directors
Delaware Investments Global Dividend and Income Fund, Inc.
We have audited the accompanying statement of net assets of Delaware Investments
Global Dividend and Income Fund, Inc. (the "Fund") as of November 30, 2003, 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 auditing standards generally accepted
in the United States. 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, 2003, by correspondence with
the custodian and brokers or by other appropriate auditing procedures where
replies from brokers were not received.
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 Investments Global Dividend and Income Fund, Inc. at November 30, 2003,
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 accounting principles generally accepted in the United
States.
Ernst & Young LLP
Philadelphia, Pennsylvania
January 16, 2004
17
Delaware Investments Family of Funds
BOARD OF DIRECTORS AND OFFICERS ADDENDUM
A mutual fund is governed by a Board of Directors which has oversight
responsibility for the management of a fund's business affairs. Directors
establish procedures and oversee and review the performance of the investment
manager, the distributor and others that perform services for the fund. The
independent fund Directors, in particular, are advocates for shareholder
interests. The following is a list of the Directors/Officers and certain
background and related information.
Number of Other
Principal Portfolios in Fund Directorships
Name, Position(s) Occupation(s) Complex Overseen Held by
Address Held with Length of Time During by Director Director
and Birthdate Fund(s) Served Past 5 Years or Officer or Officer
- -----------------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEES
Jude T. Driscoll(2) Chairman and 3 Years - Since August 2000, 83 None
2005 Market Street Director(4) Executive Officer Mr. Driscoll has served in
Philadelphia, PA various executive capacities
19103 Director since at different times at
May 15, 2003 Delaware Investments(1)
March 10, 1963
Senior Vice President and
Director of Fixed-Income Process -
Conseco Capital Management
(June 1998 - August 2000)
Managing Director -
NationsBanc Capital Markets
(February 1996 - June 1998)
- -----------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
Walter P. Babich Director 15 Years Board Chairman - 101 None
2005 Market Street Citadel Construction Corporation
Philadelphia, PA (1989 - Present)
19103
October 1, 1927
John H. Durham Director 24 Years(3) Private Investor 101 Trustee - Abington
2005 Market Street Memorial Hospital
Philadelphia, PA
19103
August 7, 1937 President/Director -
22 WR Corporation
John A. Fry Director(4) 2 Years President - 83 None
2005 Market Street Franklin & Marshall College
Philadelphia, PA (June 2002 - Present)
19103
Executive Vice President -
University of Pennsylvania
May 28, 1960 (April 1995 - June 2002)
Anthony D. Knerr Director 10 Years Founder/Managing Director - 101 None
2005 Market Street Anthony Knerr & Associates
Philadelphia, PA (Strategic Consulting)
19103 (1990 - Present)
December 7, 1938
18
Number of Other
Principal Portfolios in Fund Directorships
Name, Position(s) Occupation(s) Complex Overseen Held by
Address Held with Length of Time During by Director Director
and Birthdate Fund(s) Served Past 5 Years or Officer or Officer
- -----------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES (CONTINUED)
Ann R. Leven Director 14 Years Treasurer/Chief Fiscal Officer - 101 Director - Andy
2005 Market Street National Gallery of Art Warhol Foundation
Philadelphia, PA (1994 - 1999)
19103 Director -
Systemax Inc.
November 1, 1940
Thomas F. Madison Director 9 Years President/Chief 101 Director -
2005 Market Street Executive Officer - CenterPoint Energy
Philadelphia, PA MLM Partners, Inc.
19103 (Small Business Investing Director - Digital
and Consulting) River Inc.
(January 1993 - Present)
February 25, 1936 Director - Rimage
Corporation
Director - Valmont
Industries, Inc.
Janet L. Yeomans Director 4 Years Vice President/Mergers & 101 None
2005 Market Street Acquisitions - 3M Corporation
Philadelphia, PA (January 2003 - Present)
19103
Ms. Yeomans has held
July 31, 1948 various management
positions at 3M Corporation
since 1983.
- -----------------------------------------------------------------------------------------------------------------------------------
OFFICERS
Joseph H. Hastings Executive Executive Mr. Hastings has served in 101 None
2005 Market Street Vice President Vice President various executive capacities
Philadelphia, PA and and at different times at
19103 Chief Financial Chief Financial Delaware Investments.
Officer Officer since
August 21, 2003
December 19, 1999
Richelle S. Maestro Senior Vice President, Chief Legal Ms. Maestro has served in 101 None
2005 Market Street Chief Legal Officer Officer since various executive capacities
Philadelphia, PA and Secretary March 17, 2003 at different times at
19103 Delaware Investments.
November 26, 1957
Michael P. Bishof Senior Vice President 7 Years Mr. Bishof has served in 101 None
2005 Market Street and Treasurer various executive capacities
Philadelphia, PA at different times at
19103 Delaware Investments.
August 18, 1962
(1) Delaware Investments is the marketing name for Delaware Management Holdings,
Inc. and its subsidiaries, including the Registrant's investment advisor.
(2) Mr. Driscoll is considered to be an "Interested Director" because he is an
executive officer of the Fund's manager.
(3) Mr. Durham served as a Director Emeritus from 1995 through 1998.
(4) Mr. Driscoll and Mr. Fry are not Trustees of the portfolios of Voyageur
Insured Funds, Voyageur Intermediate Tax Free Funds, Voyageur Investment
Trust, Voyageur Mutual Funds, Voyageur Mutual Funds II, Voyageur Mutual
Funds III and Voyageur Tax Free Funds.
19
Delaware DDF
Investments(SM) List
- -------------------------------------- NYSE
A member of Lincoln Financial Group(R) THE NEW YORK STOCK EXCHANGE
This annual report is for the information of Delaware Investments Global
Dividend and Income Fund, Inc. shareholders. The figures in this report
represent past results which are not a guarantee of future results. The return
and principal value of an investment in the Fund will fluctuate so that shares,
when sold, may be worth more or less than their original cost.
Notice is hereby given in accordance with Section 23(c) of the Investment
Company 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
Jude T. Driscoll Joseph H. Hastings Investment Manager
Chairman Executive Vice President and Delaware Management Company
Delaware Investments Family of Funds Chief Financial Officer Philadelphia, PA
Philadelphia, PA Delaware Investments Family of Funds
Philadelphia, PA International Affiliate
Walter P. Babich Delaware International Advisers Ltd.
Board Chairman Richelle S. Maestro London, England
Citadel Construction Corporation Senior Vice President,
King of Prussia, PA Chief Legal Officer and Secretary Principal Office of the Fund
Delaware Investments Family of Funds 2005 Market Street
John H. Durham Philadelphia, PA Philadelphia, PA 19103
Private Investor
Gwynedd Valley, PA Michael P. Bishof Independent Auditors
Senior Vice President and Treasurer Ernst & Young LLP
John A. Fry Delaware Investments Family of Funds 2001 Market Street
President Philadelphia, PA Philadelphia, PA 19103
Franklin & Marshall College
Lancaster, PA Registrant 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 Your Reinvestment Options
St. Paul, MN Delaware Investments Global Dividend and
- -------------------------------------------------------------------------------- Income Fund, Inc. offers an automatic
A description of the policies and procedures that the Fund uses to determine how dividend reinvestment program. If you
to vote proxies (if any) relating to portfolio securities is available without would like to reinvest dividends, and
charge (i) upon request, by calling 800-523-1918; (ii) on the Fund's website at shares are registered in your name,
http://www.delawareinvestments.com; and (iii) on the Commission's website at contact Mellon Investor Services, LLC at
http://www.sec.gov.; and beginning no later than August 31, 2004, information 800 851-9677. You will be asked to put
(if any) regarding how the Fund voted proxies relating to portfolio securities your request in writing. If you have
during the most recent 12-month period ended June 30 is available without charge shares registered in "street" name,
(i) through the Fund's website at http://www.delawareinvestments.com; and (ii) contact the broker/dealer holding the
on the Commission's website at http://www.sec.gov. shares or your financial advisor.
- -------------------------------------------------------------------------------- ----------------------------------------
+Audit Committee Member
(8457) Printed in the USA
AR-DGF [11/03] IVES 1/04 J9520 EXP: 1/05
Item 2. Code of Ethics
The registrant has adopted a code of ethics that applies to the
registrant's principal executive officer, principal financial officer, principal
accounting officer or controller, or persons performing similar functions,
regardless of whether these individuals are employed by the registrant or a
third party. A copy of the registrant's Code of Business Ethics has been posted
on Delaware Investments' internet website at www.delawareinvestments.com. Any
amendments to the Code of Business Ethics, and information on any waiver from
its provisions granted by the registrant, will also be posted on this website
within five business days of such amendment or waiver and will remain on the
website for at least 12 months.
Item 3. Audit Committee Financial Expert
The registrant's Board of Trustees/Directors has determined that each
member of the registrant's Audit Committee is an audit committee financial
expert, as defined below. For purposes of this item, an "audit committee
financial expert" is a person who has the following attributes:
a. An understanding of generally accepted accounting principles and
financial statements;
b. The ability to assess the general application of such principles in
connection with the accounting for estimates, accruals, and reserves;
c. Experience preparing, auditing, analyzing, or evaluating financial
statements that present a breadth and level of complexity of accounting issues
that are generally comparable to the breadth and complexity of issues that can
reasonably be expected to be raised by the registrant's financial statements, or
experience actively supervising one or more persons engaged in such activities;
d. An understanding of internal controls and procedures for financial
reporting; and
e. An understanding of audit committee functions.
An "audit committee financial expert" shall have acquired such attributes
through:
a. Education and experience as a principal financial officer, principal
accounting officer, controller, public accountant, or auditor or experience in
one or more positions that involve the performance of similar functions;
b. Experience actively supervising a principal financial officer,
principal accounting officer, controller, public accountant, auditor, or person
performing similar functions;
c. Experience overseeing or assessing the performance of companies or
public accountants with respect to the preparation, auditing, or evaluation of
financial statements; or
d. Other relevant experience.
The registrant's Board of Trustees/Directors has also determined that
each member of the registrant's Audit Committee is independent. In order to be
"independent" for purposes of this item, the Audit Committee member may not: (i)
other than in his or her capacity as a member of the Board of Trustees/Directors
or any committee thereof, accept directly or indirectly any consulting, advisory
or other compensatory fee from the issuer; or (ii) be an "interested person" of
the registrant as defined in Section 2(a)(19) of the Investment Company Act of
1940.
The names of the audit committee financial experts on the registrant's
Audit Committee are set forth below:
Ann R. Leven
Thomas F. Madison
Janet L. Yeomans(1)
Item 4. Principal Accountant Fees and Services
Required only for fiscal years ending after December 15, 2003.
Not applicable.
Item 5. Audit Committee of Listed Registrants
The registrant has a separately-designated standing Audit Committee
established in accordance with Section 3(a)(58)(A) of the Securities Exchange
Act of 1934. The members of the registrant's Audit Committee are Ann R. Leven,
Thomas F. Madison and Janet L. Yeomans.
_______________________
(1) The instructions to Form N-CSR require disclosure on the relevant experience
of persons who qualify as audit committee financial experts based on "other
relevant experience." The Board of Trustees/Directors has determined that Ms.
Yeomans qualifies as an audit committee financial expert by virtue of her
education and experience as the Treasurer of a large global corporation.
Item 6. [Reserved]
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies
The registrant has formally delegated to its investment adviser(s)
(including any sub-adviser) (the "Adviser") the ability to make all proxy voting
decisions in relation to portfolio securities held by the registrant. If and
when proxies need to be voted on behalf of the registrant, the Adviser will vote
such proxies pursuant to its Proxy Voting Policies and Procedures (the
"Procedures"). The Adviser has established a Proxy Voting Committee (the
"Committee") which is responsible for overseeing the Adviser's proxy voting
process for the registrant. One of the main responsibilities of the Committee is
to review and approve the Procedures to ensure that the Procedures are designed
to allow the Adviser to vote proxies in a manner consistent with the goal of
voting in the best interests of the registrant.
In order to facilitate the actual process of voting proxies, the
Adviser has contracted with Institutional Shareholder Services ("ISS") to
analyze proxy statements on behalf of the registrant and other Adviser clients
and vote proxies generally in accordance with the Procedures. The Committee is
responsible for overseeing ISS's proxy voting activities. If a proxy has been
voted for the registrant, ISS will create a record of the vote. Beginning no
later than August 31, 2004, information (if any) regarding how the registrant
voted proxies relating to portfolio securities during the most recent 12-month
period ended June 30 is available without charge (i) through the registrant's
website at http://www.delawareinvestments.com; and (ii) on the Commission's
website at http://www.sec.gov.
The Procedures contain a general guideline that recommendations of
company management on an issue (particularly routine issues) should be given a
fair amount of weight in determining how proxy issues should be voted. However,
the Adviser will normally vote against management's position when it runs
counter to its specific Proxy Voting Guidelines (the "Guidelines"), and the
Adviser will also vote against management's recommendation when it believes that
such position is not in the best interests of the registrant.
As stated above, the Procedures also list specific Guidelines on how to
vote proxies on behalf of the registrant. Some examples of the Guidelines are as
follows: (i) generally vote for shareholder proposals asking that a majority or
more of directors be independent; (ii) generally vote against proposals to
require a supermajority shareholder vote; (iii) votes on mergers and
acquisitions should be considered on a case-by-case basis, determining whether
the transaction enhances shareholder value; (iv) generally vote against
proposals to create a new class of common stock with superior voting rights; (v)
generally vote re-incorporation proposals on a case-by-case basis; (vi) votes
with respect to management compensation plans are determined on a case-by-case
basis; and (vii) generally vote for reports on the level of greenhouse gas
emissions from a company's operations and products.
Because the registrant has delegated proxy voting to the Adviser, the
registrant is not expected to encounter any conflict of interest issues
regarding proxy voting and therefore does not have procedures regarding this
matter. However, the Adviser does have a section in its Procedures that
addresses the possibility of conflicts of interest. Most proxies which the
Adviser receives on behalf of the registrant are voted by ISS in accordance with
the Procedures. Because almost all registrant proxies are voted by ISS pursuant
to the pre-determined Procedures, it normally will not be necessary for the
Adviser to make an actual determination of how to vote a particular proxy,
thereby largely eliminating conflicts of interest for the Adviser during the
proxy voting process. In the very limited instances where the Adviser is
considering voting a proxy contrary to ISS's recommendation, the Committee will
first assess the issue to see if there is any possible conflict of interest
involving the Adviser or affiliated persons of the Adviser. If a member of the
Committee has actual knowledge of a conflict of interest, the Committee will
normally use another independent third party to do additional research on the
particular proxy issue in order to make a recommendation to the Committee on how
to vote the proxy in the best interests of the registrant. The Committee will
then review the proxy voting materials and recommendation provided by ISS and
the independent third party to determine how to vote the issue in a manner which
the Committee believes is consistent with the Procedures and in the best
interests of the registrant.
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 providing reasonable assurance 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 control
over financial reporting that occurred during the registrant's last fiscal
half-year (the registrant's second fiscal half-year in the case of an annual
report) that have materially affected, or are reasonably likely to materially
affect, the registrant's internal control over financial reporting.
Item 10. Exhibits
(a) (1) Code of Ethics
Not applicable.
(2) 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.
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are
furnished herewith 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.
Name of Registrant: Delaware Investments Global Dividend and Income Fund, Inc.
JUDE T. DRISCOLL
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By: Jude T. Driscoll
Title: Chairman
Date: 2/2/04
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: 2/2/04
JOSEPH H. HASTINGS
- -------------------------------
By: Joseph H. Hastings
Title: Chief Financial Officer
Date: 2/2/04