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, 2004
Item 1. Reports to Stockholders
Delaware
Investments(SM)
--------------------------------------
A member of Lincoln Financial Group(R)
CLOSED-END
ANNUAL REPORT NOVEMBER 30, 2004
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DELAWARE INVESTMENTS
GLOBAL DIVIDEND AND INCOME FUND, INC.
[LOGO] POWERED BY RESEARCH.(SM)
TABLE
OF CONTENTS
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PORTFOLIO MANAGEMENT REVIEW 1
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PERFORMANCE SUMMARY 4
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SECTOR ALLOCATION 6
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FINANCIAL STATEMENTS:
Statement of Net Assets 7
Statement of Operations 14
Statements of Changes in Net Assets 15
Statement of Cash Flows 15
Financial Highlights 16
Notes to Financial Statements 17
- -----------------------------------------------------
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM 21
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OTHER FUND INFORMATION 22
- -----------------------------------------------------
BOARD OF DIRECTORS/OFFICERS 23
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Funds are not FDIC insured and are not guaranteed. It is possible to lose the
principal amount invested.
Mutual fund advisory services provided by Delaware Management Company, a series
of Delaware Management Business Trust, which is a registered investment advisor.
PORTFOLIO DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC.
MANAGEMENT REVIEW December 10, 2004
FUND MANAGERS
Damon J. Andres
Senior Portfolio Manager
Nancy M. Crouse
Senior Portfolio Manager
Philip R. Perkins
Senior Portfolio Manager
Timothy L. Rabe
Senior Portfolio Manager
Q: PLEASE DISCUSS HOW THE MARKETS PERFORMED DURING THE
FISCAL YEAR ENDED NOVEMBER 30, 2004.
A: The 12-month period began on a positive note for the
U.S. stock market, with prices increasing until early April.
The market then undertook a rather lengthy period of choppiness, owing to
investor uncertainty that stemmed from the political environment, rapidly rising
oil prices, ongoing geopolitical unrest, and the potential for slowing economic
growth, among other key factors (source: Lipper Inc.).
With the recent conclusion of the presidential election, at least one element of
uncertainty has been effectively removed, which is encouraging. Recent data
suggest that continued economic growth appears to be intact and that job growth
has accelerated (source: U.S. Bureau of Labor Statistics). Also, oil prices
reached the lofty level of $55 per barrel range in October, but retreated
somewhat in the final month of the period. In general, higher energy prices have
neither caused a spike in overall inflation in the U.S., nor have they held back
consumer spending (source: Bloomberg L.P.). Lastly, the Federal Reserve has
managed the increase in short-term interest rates in a way that has not seemed
to have had a negative impact on the stock market.
On the international front, economic expansion continued in most developed
nations, to the general benefit of their equity and debt markets. The falling
dollar only helped to boost returns among international holdings for the
12-month period. The prospects of further deterioration in the dollar's value
will no doubt hold investor interest, particularly if framed against potentially
decreasing asset flows into domestic markets.
During the 12-month period, some of the best-performing sectors of the S&P 500
Index were those typically preferred by investors for their defensive
characteristics, such as the utilities group. Aggressive stocks, like those
found in the technology sector, trailed the broad market in 2004, which we take
as an indication of the risk aversion present in the market.
Q: HOW DID THE FUND PERFORM VERSUS ITS BENCHMARK INDEX
AND FUND PEER GROUP FOR THE 12-MONTH PERIOD ENDED NOVEMBER 30, 2004?
A: Delaware Investments Global Dividend and Income Fund, Inc. returned +22.92%
(at net asset value with distributions reinvested) for the fiscal year ended
November 30, 2004. For the same time period, the Fund's equity benchmark, the
Standard & Poor's 500 Index, appreciated +12.85%. Also, the Fund's peer group,
as measured by the Lipper Closed-End Income and Preferred Stock Funds average,
appreciated +12.61% for the 12-month period (source: Lipper Inc.).
Q: HOW DID THE FUND'S FIXED-INCOME INVESTMENTS PERFORM
FOR THE 12-MONTH PERIOD ENDED NOVEMBER 30, 2004?
A: The Fund invests in high-yield corporate bonds, a market not to be left out
of the generally favorable investment climate for the fiscal year ended November
30, 2004. Given the typically low yields associated with many income-oriented
securities during 2004, high-yield corporate bonds appealed to investors,
particularly given the generally strengthening nature of corporate balance
sheets (source: U.S. Bureau of Economic Analysis). The Bear Stearns High Yield
Index, our benchmark for this portion of the Fund, gained a solid +12.02% for
the 12-month period (source: Bloomberg L.P.).
We generated excess return across many areas of the high-yield corporate bond
market, which we credit to our focus on stringent market and securities
research, intended to attempt to identify securities with appealing fundamentals
and attractive valuations. We have continued to dig deeply into both new issue
niche credits and battered issues that we believe may recover. Also, we have
continued to focus on some smaller companies, which have generally been out of
favor but tend to possess solid fundamentals and favorable relative value.
During the 12-month period, we favored the cable, chemical, and packaging
sectors while we remained cautious of bonds issued by airline, broadcasting, and
lodging companies.
1
Q: PLEASE DESCRIBE THE PERFORMANCE OF THE FUND'S STOCKS
FOR THE FISCAL YEAR ENDED NOVEMBER 30, 2004.
A: In general, Fund performance benefited from the general shift in investor
preference from more aggressive types of common stocks, as with those associated
with technology and those with more stable operations and a general orientation
toward paying dividends. Specifically, the Fund's common stocks trailed the
Russell 1000 Value Index, with our security selection and sector allocations
impacting Fund return (source: Wilshire Associates Inc.).
Outside the U.S., we observed strong stock performance against a backdrop of
continued economic expansion. Japan performed well early on, based on the
general perception that its economy had recovered. By year-end, however,
Japanese stocks relinquished many of those gains, as domestic demand was
somewhat weak. Elsewhere in Asia, developed economies fared quite well, helped
by the economic dynamo of Chinese demand for goods and services. Results in
Europe were mixed (source: MSCI Inc.).
Sector allocation and security selection were positive influences on the Fund's
international stock positions, while currency selection impeded relative
performance. Our analysis revealed favorable valuations in Australia, Hong Kong,
New Zealand, Spain, and Belgium. All of these markets outperformed the MSCI EAFE
Index. Our absence of exposure in Switzerland, an underweighting in Japan, and
exposure to non-dollar sovereign bonds also benefited return.
Among preferred securities, a light fall calendar kept investors focused on
secondary issues, with the bank sector being rather strong. Agency-related
preferred securities exhibited volatility due to ongoing concerns about the
status of such government-sponsored enterprises (source: Citigroup Global
Markets Inc.).
Q: WHAT IS THE FUND'S POSITION ON REAL ESTATE INVESTMENT TRUSTS?
A: The Fund invests in real estate investment trusts (REITs), which rebounded
nicely from the slump they experienced in the second quarter of 2004. During
April, REITs were treated unfairly in our opinion, with many investors wrongly
treating them just like bonds due to their competitive income streams. REITs got
caught up in a general decline in bond prices, which began when economic data
signaled that interest rates might move higher. When the interest rate
environment calmed and the economy continued on its expansionary path, investor
interest in REITs resumed, leading to strong performances for the 12-month
period; the NAREIT Equity REIT Index appreciated +29.88% for the fiscal year
(source: NAREIT, Inc.).
Q: WHICH INDIVIDUAL BONDS PERFORMED WELL AND WHICH ONES
DISAPPOINTED DURING THE 12-MONTH PERIOD?
A: Portola Packaging faced short-term financing challenges during the 12 months
while Advanced Accessory Holdings experienced weakness that typified the
automotive sector. The bonds of chemical manufacturer Rhodia, while struggling
through much of the period, exhibited a measure of strength in the closing
months of the fiscal year. We believe these bonds continue to hold upside
potential, and we thus held them in the portfolio as of fiscal year-end. J. Crew
was a bond that exhibited strength during the period. Also, we saw our exposure
to Gold Kist appreciate, as the poultry producer announced an initial public
offering during the period and benefited from rising chicken prices, given
health-related concerns involving beef.
International sovereign bonds performed well versus Treasury securities for the
12-month period ended November 30, 2004. A major cause was foreign currency
appreciation versus the domestic dollar, which slid lower in relative value as
the U.S. moved steadily toward a record current account deficit. Investors
generally anticipate further dollar weakness, due in part to expectations for
modest monetary tightening on the part of the Federal Reserve, as well as
potential slowing of investment inflows into domestic securities. The prospect
for higher Treasury yields may close the yield advantage of nondollar
sovereigns, placing added focus on security selection and allocation as a means
of seeking market outperformance moving forward.
2
Q: PLEASE NAME SOME REIT INVESTMENTS THAT PERFORMED
WELL DURING THE FISCAL YEAR AND SOME WHICH DID NOT.
A: We underperformed in the apartment sector. Our position in Apartment
Investment and Management Company (AIMCO) gained nearly 10 percent during the
fiscal year, yet trailed the market due to continued sector weakness brought
about by aggressive multifamily construction and the attractiveness of low
mortgage rates for potential renters. We sold this position during the period.
Within this same sector, we conversely experienced a solid gain in Simon
Property Group, which largely manages higher-end retail properties. Appreciating
37 percent for the fiscal year, we maintained our position in Simon Property at
period-end, as we did Ramco-Gershenson Properties, a strip mall manager that
modestly underperformed the market due to a convertible security issuance and
investor concern for the prospects of the stores that anchor Ramco's properties.
In the industrial/office space, we benefited from a position in Reckson
Associates, which gained 42 percent for the fiscal year. Rising a similar amount
was MortgageIT Holdings, a company that performed well due to the solid housing
environment.
Q: PLEASE LIST SOME COMMON STOCKS THAT UNDERPERFORMED THE BENCHMARK.
A: We lost a measure of performance with consumer growth stocks, which had the
greatest downside influence on Fund performance. Big name pharmaceuticals
struggled during the period, and our positions in Merck and Pfizer experienced
poor performance. Consumer staple names also did not experience a favorable
environment for the period, and our overweighting in underperforming food and
beverage stocks also caused a drag on Fund return. Conversely, we gained excess
return in banking stocks, among which Bank of America led the way with a 27
percent appreciation for the 12-month period. Our communication services stocks
also outpaced their benchmark peers and added positive return to the Fund.
In Australia, shares of National Australia Bank (NAB) suffered from a case of
fraud associated with foreign exchange during the fiscal year, prompting
sweeping changes in management and operations. With profit expectations
downgraded, the stock underperformed. Another company that did not perform to
our expectations was Amcor, an Australian packaging firm. Amcor downgraded
profit expectations during the year, resulting in a disappointing return.
Because Amcor's management is focusing on cost reduction, we remain comfortable
with its long-term outlook.
Q: CONVERSELY, COULD YOU IDENTIFY SOME ISSUES THAT
GENERATED EXCESS RETURN FOR THE FUND?
A: We enjoyed sound performance with Starwood Hotels and Resorts, which rose 55
percent for the fiscal year due to a resurgence in travel and leisure-related
activities. The dramatic run up in petroleum prices during the period greatly
affected energy-related companies, with Kerr-McGee and ChevronTexaco gaining 53
percent and 50 percent for the fiscal year, respectively. Our belief that the
economy's continued expansion might benefit the basic materials group resulted
in solid gains for Dow Chemical, which appreciated 38 percent for the fiscal
year.
Among non-U.S. stocks, the German utility Rheinisch Westfaelisches Elek AG (RWE)
benefited from positive news about electricity prices. There is also a sense of
confidence among investors about the company's new CEO and his programs for
restructuring, which have brought financial discipline and increased operating
efficiency. Also in Europe, Mitchells & Butlers, a U.K.-branded operator of bars
and restaurants, performed extremely well during the 12-month period as the
company launched a securitization program that has helped its balance sheet
efficiency.
3
DELAWARE INVESTMENTS
GLOBAL DIVIDEND AND INCOME FUND, INC.
The performance data quoted represent past performance; past performance does
not guarantee future results. Investment return and principal value will
fluctuate so your shares, when sold, may be worth more or less than their
original cost. Current performance may be lower or higher than the performance
data quoted. A rise/fall in interest rates can have a significant impact on bond
prices and the net asset value (NAV) of the Fund. Funds that invest in bonds can
lose their value as interest rates can rise and an investor can lose principal.
Instances of high double-digit returns are highly unusual and cannot be
sustained, and were achieved primarily during favorable market conditions.
FUND PERFORMANCE
Average Annual Total Returns
Through November 30, 2004 Lifetime 10 Years Five Years One Year
- --------------------------------------------------------------------------------
At Market Price +8.82% +11.59% +12.45% +12.01%
At Net Asset Value +10.55% +11.50% +10.88% +22.92%
- --------------------------------------------------------------------------------
Returns reflect reinvestment of all distributions. Shares of the Fund were
initially offered with a sales charge of 6.0%. Performance since inception does
not include the sales charge or any brokerage commissions for purchases made
since inception. Past performance does not guarantee of future results.
The performance table does not reflect the deduction of taxes the shareholder
would pay on Fund distributions or sales of Fund shares.
FUND BASICS
As of November 30, 2004
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Fund Objective:
The Fund seeks to achieve high current income and, secondarily, capital
appreciation.
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Total Fund Net Assets:
$81.32 million
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Number of Holdings:
306
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Fund Start Date:
March 4, 1994
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Your Fund Managers:
Damon J. Andres earned a bachelor's degree in business administration with an
emphasis in finance and accounting from the University of Richmond. Prior to
joining Delaware Investments in 1994, he performed investment consulting
services as a Consulting Associate with Cambridge Associates, Inc. in Arlington,
Virginia. Mr. Andres is a CFA charterholder.
Nancy M. Crouse earned a bachelor's degree from Lafayette College and an MBA
from the University of Pittsburgh. Before joining Delaware Investments in 1993,
she served as vice president at CoreStates Investment Advisers, where she
performed securities analysis and managed balanced portfolios. Ms. Crouse is a
CFA charterholder. In September 2004, Ms. Crouse and Mr. Andres began managing
the Fund's foreign equity allocation in addition to their prior role managing
the Fund's domestic equity allocation. Ms. Crouse and Mr. Andres replaced Clive
Gillmore of Mondrian Investment Partners Limited, previously Delaware
International Advisors Ltd. in managing foreign equities.
Philip R. Perkins has been co-managing the Fund since September 2004. He
replaced Joanna Bates and Christopher Moth of Mondrian Investment Partners
Limited, previously Delaware International Advisors Ltd., in managing the
foreign fixed income portion of the Fund. Mr. Perkins holds a BA from the
University of Notre Dame. Before joining Delaware Investments in 2004, he was a
managing director of global markets with Deutsche Bank A.G. Before that, he was
chief executive officer of Dinner Key Advisors Inc.
Timothy L. Rabe received a bachelor's degree in finance from the University of
Illinois. Prior to joining Delaware Investments in 2000, he 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.
- --------------------------------------------------------------------------------
NYSE Symbol:
DGF
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4
DELAWARE INVESTMENTS
GLOBAL DIVIDEND AND INCOME FUND, INC.
MARKET PRICE VS. NET ASSET VALUE (NAV)
November 30, 2003 through November 30, 2004
DELAWARE INVESTMENTS DELAWARE INVESTMENTS
GLOBAL DIVIDEND & GLOBAL DIVIDEND &
INCOME FUND, INC. - MARKET PRICE INCOME FUND, INC. - NAV
-------------------------------- -----------------------
11/30/2003 $11.90 $11.98
12/31/2003 $12.38 $12.75
1/31/2004 $12.40 $12.75
2/29/2004 $12.48 $12.87
3/31/2004 $12.41 $12.85
4/30/2004 $11.25 $12.11
5/31/2004 $11.24 $12.24
6/30/2004 $11.11 $12.43
7/31/2004 $11.04 $12.25
8/31/2004 $11.74 $12.43
9/30/2004 $11.73 $12.68
10/31/2004 $12.08 $12.97
11/30/2004 $12.30 $13.59
Past performance is not a guarantee of future results.
PERFORMANCE OF A $10,000 INVESTMENT
November 30, 1994 through November 30, 2004
DELAWARE INVESTMENTS DELAWARE INVESTMENTS LIPPER CLOSED-END LIPPER CLOSED-END
GLOBAL DIVIDEND & GLOBAL DIVIDEND & INCOME & PREFERRED INCOME & PREFERRED
INCOME FUND, INC. INCOME FUND, INC. STOCK FUNDS AVG STOCK FUNDS AVG
@ NAV @ MARKET PRICE @ (NAV) @ (MARKET PRICE)
-------------------- -------------------- ------------------ -------------------
11/30/94 $10,000 $10,000 $10,000 $10,000
11/30/95 $11,908 $12,974 $12,036 $12,874
11/30/96 $14,778 $16,531 $13,483 $14,640
11/30/97 $17,427 $19,669 $15,667 $16,575
11/30/98 $17,809 $20,072 $16,869 $18,164
11/30/99 $17,708 $16,660 $16,067 $15,742
11/30/00 $16,992 $16,708 $17,303 $17,157
11/30/01 $18,166 $22,476 $18,614 $21,718
11/30/02 $18,217 $21,242 $17,429 $20,808
11/30/03 $24,162 $26,748 $19,729 $25,787
11/30/04 $29,699 $29,961 $22,253 $28,064
Chart assumes $10,000 invested on November 30, 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 as of November 30, 1994.
Returns on the chart 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 a peer
group of closed-end mutual funds tracked by Lipper Inc. You cannot invest
directly in an index. Past performance is not a guarantee of future results.
5
SECTOR ALLOCATION As of November 30, 2004
DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC.
The SEC adopted a requirement that all funds present their categories of
portfolio holdings in a table, chart or graph format in their annual and
semiannual shareholder reports, whether or not a schedule of investments is
utilized. The following chart lists the Fund's categories of portfolio holdings
as a percentage of total net assets and is provided in compliance with such
requirement.
PERCENTAGE
SECTOR OF NET ASSETS
- --------------------------------------------------------------------------------
COMMON STOCK 75.48%
- --------------------------------------------------------------------------------
Aerospace & Defense 0.51%
Automobiles & Automotive Parts 1.80%
Banking, Finance & Insurance 13.72%
Building & Materials 1.36%
Chemicals 2.76%
Computers & Technology 1.57%
Consumer Cyclical 0.05%
Consumer Products 0.55%
Electronics & Electrical Equipment 2.26%
Energy 5.76%
Food, Beverage & Tobacco 4.60%
Healthcare REITs 0.12%
Healthcare & Pharmaceuticals 5.02%
Industrial Machinery 0.44%
Industrial REITs 0.90%
Investment Companies 0.88%
Leisure, Lodging & Entertainment 1.51%
Mall REITs 3.70%
Manufactured Housing REITs 0.21%
Media 0.04%
Metals & Mining 0.68%
Mortgage REITs 3.46%
Multifamily REITs 0.82%
Office/Industrial REITs 4.14%
Paper & Forest Products 2.39%
Real Estate Operating Companies 1.40%
Retail 2.11%
Retail Strip Centers REITs 1.17%
Technology 0.63%
Telecommunications 5.55%
Transportation & Shipping 0.32%
Utilities 5.05%
- --------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCK 1.07%
- --------------------------------------------------------------------------------
Banking, Finance & Insurance 0.17%
Building & Materials 0.03%
Environmental Services 0.26%
Metals & Mining 0.01%
Telecommunications 0.60%
PERCENTAGE
SECTOR OF NET ASSETS
- --------------------------------------------------------------------------------
PREFERRED STOCK 3.22%
- --------------------------------------------------------------------------------
Leisure, Lodging & Entertainment 0.50%
Real Estate 2.23%
Utilities 0.49%
- --------------------------------------------------------------------------------
AGENCY OBLIGATIONS 1.38%
- --------------------------------------------------------------------------------
CONVERTIBLE BONDS 3.17%
- --------------------------------------------------------------------------------
Capital Goods -- Manufacturing 0.19%
Consumer Cyclical 1.67%
Media 0.03%
Technology 0.34%
Telecommunications 0.60%
Transportation & Shipping 0.06%
Utilities 0.28%
- --------------------------------------------------------------------------------
CORPORATE BONDS 17.31%
- --------------------------------------------------------------------------------
Basic Materials 1.61%
Capital Goods - Manufacturing 1.16%
Consumer Cyclical 3.18%
Consumer Non-Cyclical 1.28%
Energy 0.64%
Finance 3.54%
Media 1.97%
Technology 0.29%
Telecommunications 1.29%
Transportation & Shipping 0.77%
Utilities 1.58%
- --------------------------------------------------------------------------------
MUNICIPAL BONDS 0.06%
- --------------------------------------------------------------------------------
SOVEREIGN DEBT 22.42%
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS 5.88%
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WARRANTS 0.01%
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SECURITIES LENDING COLLATERAL 8.28%
- --------------------------------------------------------------------------------
TOTAL MARKET VALUE OF SECURITIES 138.28%
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OBLIGATION TO RETURN SECURITIES LENDING COLLATERAL (8.28%)
- --------------------------------------------------------------------------------
RECEIVABLES AND OTHER ASSETS NET OF LIABILITIES 0.74%
- --------------------------------------------------------------------------------
BORROWING UNDER LINE OF CREDIT (30.74%)
- --------------------------------------------------------------------------------
TOTAL NET ASSETS 100.00%
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6
STATEMENT DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC.
OF NET ASSETS November 30, 2004
Number of Market
Shares Value (U.S.$)
COMMON STOCK - 75.48%***
Aerospace & Defense - 0.51%
Northrop Grumman 7,380 $ 415,715
-----------
415,715
-----------
Automobiles & Automotive Parts - 1.80%
General Motors 10,200 393,618
GKN 75,215 324,928
Goodrich (B.F.) 23,500 746,125
-----------
1,464,671
-----------
Banking, Finance & Insurance - 13.72%
Aviva 62,582 693,828
Banca Intesa 122,698 543,029
Banco Santander Central Hispano 39,771 477,833
Bank of America 16,600 768,082
#Fieldstone Investments 144A 25,000 431,250
+Fortis 18,386 484,809
^Friedman Billings Ramsey Group Class A 25,940 495,973
HBOS 54,179 758,600
ING Groep NV 27,494 756,397
J.P. Morgan Chase 14,500 545,925
Lloyds TSB Group 87,256 703,436
MBNA 36,400 966,783
Mellon Financial 20,700 604,854
Morgan Stanley 15,800 801,850
^National Australia Bank 27,457 597,787
Oversea-Chinese Banking 41,000 335,675
^Societe Generale Class A 5,086 491,081
Wells Fargo 11,400 704,178
-----------
11,161,370
-----------
Building & Materials - 1.36%
^Compagnie de Saint-Gobain 12,800 728,277
^+Foster Wheeler 138 1,968
Wharf Holdings 106,000 377,600
-----------
1,107,845
-----------
Chemicals - 2.76%
Bayer 22,875 725,696
BOC Group 10,290 184,203
Dow Chemical 25,500 1,286,986
Wesfarmers 1,686 49,972
-----------
2,246,857
-----------
Computers & Technology - 1.57%
+Intuit 15,700 656,888
Pitney Bowes 14,100 617,157
-----------
1,274,045
-----------
Consumer Cyclical - 0.05%
^+Kmart Holding 400 41,132
-----------
41,132
-----------
Consumer Products - 0.55%
Procter & Gamble 8,400 449,232
-----------
449,232
-----------
Electronics & Electrical Equipment - 2.26%
Emerson Electric 10,000 668,200
General Electric 20,100 710,736
Hong Kong Electric 103,000 462,284
-----------
1,841,220
-----------
Number of Market
Shares Value (U.S.$)
COMMON STOCK (continued)
Energy - 5.76%
BP 51,154 $ 522,639
ChevronTexaco 16,600 906,359
Exxon Mobil 11,800 604,750
Kerr-McGee 11,600 721,868
^+Petroleum Geo-Services ADR 397 21,988
Royal Dutch Petroleum 13,709 785,280
Sasol 18,841 375,536
^Total 3,440 752,997
----------
4,691,417
----------
Food, Beverage & Tobacco - 4.60%
Anheuser-Busch 15,500 776,395
Foster's Group 191,687 803,141
General Mills 14,300 650,507
Kellogg 14,500 633,650
Mitchells & Butlers 29,029 167,993
PepsiCo 14,200 708,722
----------
3,740,408
----------
Health Care REITs - 0.12%
#Medical Properties Trust 144A 9,400 94,000
----------
94,000
----------
Healthcare & Pharmaceuticals - 5.02%
Abbott Laboratories 12,500 524,500
Eisai 7,900 235,936
GlaxoSmithKline 34,722 731,409
Merck 10,400 291,408
Pfizer 17,200 477,644
Takeda Pharmaceutical 10,100 497,164
+Tenet Healthcare 54,700 593,495
Wyeth 18,300 729,621
----------
4,081,177
----------
Industrial Machinery - 0.44%
Brambles Industries 71,495 356,348
----------
356,348
----------
Industrial REITs - 0.90
AMB Property 18,300 731,085
----------
731,085
----------
Investment Companies - 0.88%
^Gladstone Capital 29,200 716,276
----------
716,276
----------
Leisure, Lodging & Entertainment - 1.51%
Intercontinental Hotels Group 41,125 524,725
+Jameson Inns 400,000 700,000
----------
1,224,725
----------
Mall REITs - 3.70%
General Growth Properties 73,110 2,508,404
Simon Property Group 8,000 496,640
----------
3,005,044
----------
Manufactured Housing REITs - 0.21%
Sun Communities 4,400 173,492
----------
173,492
----------
7
STATEMENT DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC.
OF NET ASSETS (CONTINUED)
Number of Market
Shares Value (U.S.$)
COMMON STOCK (continued)
Media - 0.04%
^+XM Satellite Radio Holdings Class A 850 $ 31,374
----------
31,374
----------
Metals & Mining - 0.68%
Rio Tinto 18,880 553,246
----------
553,246
----------
Mortgage REITs - 3.46%
American Home Mortgage Investment 28,000 916,720
+#KKR Financial 144A 49,200 499,380
^MortgageIT Holdings 52,100 890,910
Saxon Capital 8,000 181,600
Sunset Financial Resources 31,200 323,856
----------
2,812,466
----------
Mulitfamily REITs - 0.82%
BRE Properties Class A 11,100 451,104
Camden Property Trust 4,400 215,732
----------
666,836
----------
Office/Industrial REITs - 4.14%
Duke Realty 26,000 898,300
Liberty Property Trust 21,042 862,722
Prentiss Properties Trust 21,308 796,706
Reckson Associates Realty 25,000 809,500
----------
3,367,228
----------
Paper & Forest Products - 2.39%
Amcor 78,646 452,169
International Paper 16,400 680,928
UPM-Kymmene 13,900 313,131
Weyerhaeuser 7,500 495,000
----------
1,941,228
----------
Real Estate Operating Companies - 1.40%
Starwood Hotels & Resorts Worldwide 21,700 1,134,693
----------
1,134,693
----------
Retail - 2.11%
Boots Group 44,819 540,587
Coles Myer 91,055 705,083
GUS 28,285 472,544
----------
1,718,214
----------
Retail Strip Centers REITs - 1.17%
Ramco-Gershenson Properties 31,300 952,459
----------
952,459
----------
Technology - 0.63%
Intel 22,900 511,815
----------
511,815
----------
Telecommunications - 5.55%
Alltel 19,600 1,111,124
BCE 46,200 1,120,350
Telecom Corporation of New Zealand 189,000 817,871
Telefonica 45,877 806,062
Telstra 172,136 658,452
----------
4,513,859
----------
Number of Market
Shares Value (U.S.$)
COMMON STOCK (continued)
Transportation & Shipping - 0.32%
West Japan Railway 63 $ 257,406
-----------
257,406
-----------
Utilities - 5.05%
BG Group 66,367 460,821
Dominion Resources 8,900 582,683
Electrabel 1,376 554,667
FPL Group 13,100 921,323
^Iberdrola 29,226 686,741
RWE 16,967 903,127
-----------
4,109,362
-----------
TOTAL COMMON STOCK
(cost $46,347,070) 61,386,245
-----------
CONVERTIBLE PREFERRED STOCK - 1.07%***
Banking, Finance & Insurance - 0.17%
Chubb 7.00% 4,000 117,480
Lehman Brothers Holdings 6.25% 750 19,500
-----------
136,980
-----------
Building & Materials - 0.03%
Foster Wheeler Series B 0.00% 26 24,254
-----------
24,254
-----------
Environmental Services - 0.26%
Allied Waste Industries 6.25% 4,000 209,960
-----------
209,960
-----------
Metals & Mining - 0.01%
^&Weirton Steel Series C 0.00% 8,550 4,361
-----------
4,361
-----------
Telecommunications - 0.60%
Lucent Technologies Capital Trust I 7.75% 400 486,776
-----------
486,776
-----------
TOTAL CONVERTIBLE PREFERRED STOCK
(cost $910,995) 862,331
-----------
PREFERRED STOCK - 3.22%***
Leisure, Lodging & Entertainment - 0.50%
WestCoast Hospitality Capital Trust 9.50% 15,700 408,200
-----------
408,200
-----------
Real Estate - 2.23%
^Equity Inns Series B 8.75% 10,000 267,000
LaSalle Hotel Properties 10.25% 23,500 660,585
Ramco-Gershenson Properties 9.50% 11,500 317,515
^SL Green Realty 7.625% 22,000 570,625
-----------
1,815,725
-----------
Utilities - 0.49%
Public Service Enterprise Group 10.25% 6,800 396,440
TNP Enterprises PIK 14.50% 1 940
-----------
397,380
-----------
TOTAL PREFERRED STOCK
(cost $2,416,523) 2,621,305
-----------
8
STATEMENT DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC.
OF NET ASSETS (CONTINUED)
Principal Market
Amount** Value (U.S.$)
AGENCY OBLIGATIONS - 1.38%***
Fannie Mae Global 1.75% 3/26/08 JPY 110,000,000 $ 1,119,754
-----------
TOTAL AGENCY OBLIGATIONS
(cost $1,046,106) 1,119,754
-----------
Convertible Bonds - 3.17%***
Capital Goods - Manufacturing - 0.19%
#Tyco International Group 144A
2.75% 1/15/18 USD 100,000 153,250
-----------
153,250
-----------
Consumer Cyclical - 1.67%
#Gap 144A 5.75% 3/15/09 USD 500,000 691,250
Meristar Hospitality 9.50% 4/1/10 USD 300,000 363,375
#Regal Entertainment Group 144A
3.75% 5/15/08 USD 130,000 178,913
#Saks 144A 2.00% 3/15/24 USD 125,000 119,375
-----------
1,352,913
-----------
Media - 0.03%
#Charter Communications 144A
5.875% 11/16/09 USD 25,000 26,750
-----------
26,750
-----------
Technology - 0.34%
#Mercury Interactive 144A
4.75% 7/1/07 USD 275,000 276,031
-----------
276,031
-----------
Telecommunications - 0.60%
#Nextel Partners 144A
1.50% 11/15/08 USD 200,000 491,500
-----------
491,500
-----------
Transportation & Shipping - 0.06%
#ExpressJet Holdings 144A
4.25% 8/1/23 USD 50,000 49,250
-----------
49,250
-----------
Utilities - 0.28%
#CenterPoint Energy 144A
3.75% 5/15/23 USD 200,000 228,500
-----------
228,500
-----------
TOTAL CONVERTIBLE BONDS
(cost $1,904,663) 2,578,194
-----------
CORPORATE BONDS - 17.31%***
Basic Materials - 1.61%
Abitibi-Consolidated
6.95% 12/15/06 USD 10,000 10,387
#Boise Cascade 144A
7.125% 10/15/14 USD 55,000 57,750
Fort James 7.75% 11/15/23 USD 240,000 278,399
^#Huntsman 144A 11.75% 7/15/12 USD 105,000 124,162
Ispat Inland 9.75% 4/1/14 USD 20,000 24,250
^Lyondell Chemical 9.875% 5/1/07 USD 55,000 58,163
^Nalco 8.875% 11/15/13 USD 55,000 60,981
^#Newark Group 144A
9.75% 3/15/14 USD 95,000 101,175
Principal Market
Amount** Value (U.S.$)
CORPORATE BONDS (continued)
#Port Townsend Paper 144A
11.00% 4/15/11 USD 100,000 $ 106,500
Potlatch 12.50% 12/1/09 USD 95,000 117,397
^Rhodia 8.875% 6/1/11 USD 130,000 128,050
Smurfit Capital Funding
7.50% 11/20/25 USD 90,000 90,000
^+Solutia 6.72% 10/15/37 USD 150,000 101,250
Witco 6.875% 2/1/26 USD 50,000 45,250
----------
1,303,714
----------
Capital Goods - Manufacturing - 1.16%
Aearo 8.25% 4/15/12 USD 40,000 41,400
^AEP Industries 9.875% 11/15/07 USD 50,000 50,875
Armor Holdings 8.25% 8/15/13 USD 70,000 78,575
Cenveo 7.875% 12/1/13 USD 30,000 28,500
^#Flextronics International 144A
6.25% 11/15/14 USD 30,000 29,475
^Foster Wheeler 10.359% 9/15/11 USD 45,000 47,925
#Geo Sub 144A 11.00% 5/15/12 USD 90,000 90,450
#Graham Packaging 144A
9.875% 10/15/14 USD 65,000 68,250
IESI 10.25% 6/15/12 USD 105,000 122,587
#IMCO Recycling 144A
9.00% 11/15/14 USD 35,000 36,313
Interline Brands 11.50% 5/15/11 USD 100,000 111,999
*Mueller Holdings 14.75% 4/15/14 USD 65,000 44,200
#Owens-Brockway 144A
6.75% 12/1/14 USD 55,000 55,413
#Park-Ohio Industries 144A
8.375% 11/15/14 USD 35,000 35,088
Portola Packaging 8.25% 2/1/12 USD 30,000 22,875
Radnor Holdings 11.00% 3/15/10 USD 35,000 28,875
=#Radnor Holdings 144A
8.82% 4/15/09 USD 50,000 50,750
----------
943,550
----------
Consumer Cyclical - 3.18%
Adesa 7.625% 6/15/12 USD 40,000 42,200
*Advanced Accessory Holdings
13.25% 12/15/11 USD 130,000 59,150
^Advanced Accessory Systems
10.75% 6/15/11 USD 45,000 42,975
Ameristar Casinos 10.75% 2/15/09 USD 155,000 172,825
+Avado Brands 9.75% 6/1/06 USD 45,000 16,425
Boyd Gaming 9.25% 8/1/09 USD 165,000 178,406
Caesars Entertainment
9.375% 2/15/07 USD 25,000 27,563
^#Collins & Aikman Products 144A
12.875% 8/15/12 USD 90,000 77,850
^#Denny's 144A 10.00% 10/1/12 USD 60,000 63,300
Gaylord Entertainment
8.00% 11/15/13 USD 35,000 37,975
#Gaylord Entertainment 144A
6.75% 11/15/14 USD 50,000 50,250
Interface 10.375% 2/1/10 USD 75,000 86,625
J Crew Operating
10.375% 10/15/07 USD 100,000 102,500
#Loehmanns Capital 144A
13.00% 10/1/11 USD 15,000 14,550
#Lone Star Industries 144A
8.85% 6/15/05 USD 60,000 61,382
9
STATEMENT DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC.
OF NET ASSETS (CONTINUED)
Principal Market
Amount** Value (U.S.$)
CORPORATE BONDS (continued)
Consumer Cyclical (continued)
Mandalay Resort Group
10.25% 8/1/07 USD 110,000 $ 125,125
MGM Mirage 9.75% 6/1/07 USD 125,000 139,219
O'Charleys 9.00% 11/1/13 USD 90,000 94,725
^Office Depot 10.00% 7/15/08 USD 100,000 120,000
Penn National Gaming
11.125% 3/1/08 USD 120,000 128,850
PETCO Animal Supplies
10.75% 11/1/11 USD 45,000 52,875
Royal Caribbean Cruises
7.25% 3/15/18 USD 75,000 81,563
*Town Sports International
11.00% 2/1/14 USD 85,000 47,600
Venetian Casino Resort
11.00% 6/15/10 USD 160,000 183,199
+Venture Holdings 12.00% 6/1/09 USD 95,000 594
^VICORP Restaurant
10.50% 4/15/11 USD 55,000 55,000
Warnaco 8.875% 6/15/13 USD 100,000 110,750
Wheeling Island Gaming
10.125% 12/15/09 USD 110,000 118,525
^Wynn Las Vegas 12.00% 11/1/10 USD 140,000 177,100
#Wynn Las Vegas 144A
6.625% 12/1/14 USD 115,000 113,563
----------
2,582,664
----------
Consumer Non-Cyclical - 1.28%
Ameripath 10.50% 4/1/13 USD 75,000 77,625
^#Commonwealth Brands 144A
10.625% 9/1/08 USD 95,000 99,275
Corrections Corporation of America
9.875% 5/1/09 USD 25,000 28,250
Cott Beverages 8.00% 12/15/11 USD 10,000 10,925
Gold Kist 10.25% 3/15/14 USD 8,000 9,320
HCA 5.50% 12/1/09 USD 45,000 44,832
#Jean Coutu Group 144A
8.50% 8/1/14 USD 60,000 61,200
#Le-Natures 144A 10.00% 6/15/13 USD 105,000 116,550
#Mariner Health Care 144A
8.25% 12/15/13 USD 145,000 174,282
Province Healthcare 7.50% 6/1/13 USD 130,000 146,900
^True Temper Sports
8.375% 9/15/11 USD 40,000 35,800
Universal Hospital Services
10.125% 11/1/11 USD 60,000 63,600
#US Oncology 144A
10.75% 8/15/14 USD 75,000 86,063
*#Vanguard Health 144A
11.25% 10/1/15 USD 135,000 85,050
----------
1,039,672
----------
Principal Market
Amount** Value (U.S.$)
CORPORATE BONDS (continued)
Energy - 0.64%
El Paso Production Holding
7.75% 6/1/13 USD 115,000 $ 120,463
#Hilcorp Energy 144A
10.50% 9/1/10 USD 85,000 96,900
#Hornbeck Offshore 144A
6.125% 12/1/14 USD 105,000 104,213
Petroleum Geo-Services
8.00% 11/5/06 USD 40,031 40,832
10.00% 11/5/10 USD 109,981 125,927
=#Secunda International 144A
9.76% 9/1/12 USD 30,000 29,700
-----------
518,035
-----------
Finance - 3.54%
#BCP Caylux Holdings 144A
9.625% 6/15/14 USD 45,000 50,738
BF Saul REIT 7.50% 3/1/14 USD 25,000 25,750
^Bluewater Finance
10.25% 2/15/12 USD 55,000 59,950
^#E TRADE Financial 144A
8.00% 6/15/11 USD 110,000 117,974
#Farmers Exchange Capital 144A
7.20% 7/15/48 USD 55,000 54,741
FINOVA Group 7.50% 11/15/09 USD 167,900 81,432
KFW International Finance
1.75% 3/23/10 JPY 105,000,000 1,079,309
Labranche & Company
11.00% 5/15/12 USD 55,000 59,125
Midland Funding II 11.75% 7/23/05 USD 10,325 10,838
Oesterreichesche Kontrollbank
1.80% 3/22/10 JPY 122,000,000 1,257,781
Tanger Properties 9.125% 2/15/08 USD 70,000 78,750
-----------
2,876,388
-----------
Media - 1.97%
+Adelphia Communications
8.125% 7/15/06 USD 110,000 97,900
American Media Operation
10.25% 5/1/09 USD 40,000 42,000
Avalon Cable 11.875% 12/1/08 USD 103,985 108,924
Charter Communications Holdings
^*12.125% 1/15/12 USD 330,000 204,600
10.75% 10/1/09 USD 35,000 30,450
^CSC Holdings 10.50% 5/15/16 USD 155,000 176,313
Dex Media West 9.875% 8/15/13 USD 25,000 29,000
Insight Midwest 10.50% 11/1/10 USD 215,000 236,499
^Lodgenet Entertainment
9.50% 6/15/13 USD 100,000 111,000
Mediacom Capital 8.50% 4/15/08 USD 65,000 66,625
Nextmedia Operating
10.75% 7/1/11 USD 55,000 61,806
PEI Holdings 11.00% 3/15/10 USD 85,000 99,025
Rogers Cablesystems
10.00% 3/15/05 USD 145,000 147,900
Sheridan Acquisition
10.25% 8/15/11 USD 65,000 71,338
XM Satellite Radio
12.00% 6/15/10 USD 100,000 119,000
-----------
1,602,380
-----------
10
STATEMENT DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC.
OF NET ASSETS (CONTINUED)
Principal Market
Amount** Value (U.S.$)
CORPORATE BONDS (continued)
Technology - 0.29%
^Chippac International
12.75% 8/1/09 USD 100,000 $ 106,920
#Stats Chippac 144A
6.75% 11/15/11 USD 65,000 64,188
Stratus Technologies
10.375% 12/1/08 USD 75,000 67,500
----------
238,608
----------
Telecommunications - 1.29%
=#AirGate PCS 144A 5.85% 10/15/11 USD 35,000 35,963
Alaska Communications Systems
Holdings 9.875% 8/15/11 USD 20,000 21,100
Centennial Cellular Operating
10.125% 6/15/13 USD 105,000 114,975
^Cincinnati Bell 8.375% 1/15/14 USD 130,000 130,325
Citizens Communications
8.50% 5/15/06 USD 20,000 21,525
^*#Inmarsat Finance 144A
10.375% 11/15/12 USD 70,000 48,650
Intelsat 6.50% 11/1/13 USD 75,000 64,040
#iPCS Escrow 144A
11.50% 5/1/12 USD 40,000 44,200
MCI
5.908% 5/1/07 USD 50,000 50,750
6.688% 5/1/09 USD 50,000 50,500
^MetroPCS 10.75% 10/1/11 USD 45,000 47,475
#New Skies Satellite 144A
9.125% 11/1/12 USD 85,000 87,125
#Qwest 144A 7.875% 9/1/11 USD 15,000 16,088
#Qwest Services 144A
14.00% 12/15/10 USD 110,000 130,899
#UbiquiTel Operating 144A
9.875% 3/1/11 USD 40,000 44,100
=^#US LEC 144A
10.67% 10/1/09 USD 45,000 44,775
^US Unwired 10.00% 6/15/12 USD 90,000 99,675
----------
1,052,165
----------
Transportation & Shipping - 0.77%
#Horizon Lines 144A
9.00% 11/1/12 USD 65,000 71,338
^Kansas City Southern Railway
9.50% 10/1/08 USD 150,000 170,625
OMI 7.625% 12/1/13 USD 80,000 86,500
Seabulk International
9.50% 8/15/13 USD 100,000 108,000
#Stena AB 144A 7.00% 12/1/16 USD 20,000 19,700
Stena AB 9.625% 12/1/12 USD 75,000 85,125
^#Ultrapetrol 144A 9.00% 11/24/14 USD 95,000 95,475
----------
636,763
----------
Principal Market
Amount** Value (U.S.$)
CORPORATE BONDS (continued)
Utilities - 1.58%
Avista 9.75% 6/1/08 USD 100,000 $ 116,677
^Calpine 10.50% 5/15/06 USD 75,000 74,625
#Calpine 144A
=7.82% 7/15/07 USD 44,438 39,660
9.625% 9/30/14 USD 45,000 44,944
#Dynegy Holdings 144A
10.125% 7/15/13 USD 150,000 175,874
^El Paso Natural Gas
7.625% 8/1/10 USD 45,000 49,050
Elwood Energy 8.159% 7/5/26 USD 81,788 88,944
Midwest Generation
8.30% 7/2/09 USD 100,000 108,250
8.75% 5/1/34 USD 90,000 102,488
+Mirant Americas Generation
7.625% 5/1/06 USD 80,000 83,000
^#NRG Energy 144A 8.00% 12/15/13 USD 110,000 122,100
Orion Power Holdings
12.00% 5/1/10 USD 50,000 63,250
PSEG Energy Holdings
7.75% 4/16/07 USD 50,000 53,750
^Reliant Energy 9.50% 7/15/13 USD 50,000 57,625
Tennessee Gas Pipeline
8.375% 6/15/32 USD 70,000 77,263
+#USGen New England 144A
7.459% 1/2/15 USD 50,000 32,000
-----------
1,289,500
-----------
TOTAL CORPORATE BONDS
(cost $13,479,057) 14,083,439
-----------
MUNICIPAL BONDS - 0.06%***
New Jersey Economic Development
Authority Special Facility Revenue
(Continental Airlines Project)
6.25% 9/15/29 (AMT) USD 60,000 46,200
-----------
TOTAL MUNICIPAL BONDS (cost $50,912) 46,200
-----------
11
STATEMENT DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC.
OF NET ASSETS (CONTINUED)
Principal Market
Amount** Value (U.S.$)
SOVEREIGN DEBT - 22.42%
Deutsche Republic
4.50% 1/4/13 EUR 1,194,000 $ 1,690,434
4.75% 7/4/34 EUR 632,500 889,881
5.00% 7/4/11 EUR 907,000 1,321,040
Development Bank of Japan
1.75% 6/21/10 JPY 95,000,000 976,334
European Investment Bank
2.125% 9/20/07 JPY 47,000,000 481,044
France Government
4.00% 4/25/13 EUR 1,162,000 1,586,036
5.00% 1/12/06 EUR 198,000 270,937
Government of Belgium
5.75% 3/28/08 EUR 400,000 582,368
5.75% 9/28/10 EUR 277,000 416,981
Inter-American Development Bank
1.90% 7/8/09 JPY 69,000,000 712,290
International Bank for
Reconstruction & Development
2.00% 2/18/08 JPY 51,200,000 524,883
Italy Bouni Poliennali Del Tesoro
5.00% 8/1/34 EUR 315,000 449,129
Japan Bank Cooperative
0.35% 3/19/08 JPY 88,000,000 856,608
Netherlands Government
5.75% 2/15/07 EUR 359,000 510,423
Ontario Province 1.875% 1/25/10 JPY 78,000,000 805,464
Poland Government
5.00% 10/24/13 PLZ 1,805,000 517,132
6.00% 5/24/09 PLZ 2,816,000 869,829
Queensland Treasury
6.00% 6/14/11 AUD 889,000 714,538
6.00% 8/14/13 AUD 143,000 115,462
Republic of Austria 5.25% 1/4/11 EUR 175,000 257,753
Republic of Finland 5.75% 2/23/11 EUR 396,000 598,281
Republic of Italy
0.65% 3/20/09 JPY 80,400,000 788,218
3.80% 3/27/08 JPY 62,000,000 672,315
5.75% 7/25/16 EUR 298,000 459,908
U.K. Treasury
4.00% 3/7/09 GBP 505,950 948,677
8.00% 9/27/13 GBP 90,000 214,220
-----------
TOTAL SOVEREIGN DEBT
(cost $16,717,488) 18,230,185
-----------
U.S. TREASURY OBLIGATIONS- 5.88%***
&U.S. Treasury Bill 1.90% 12/9/04 USD 4,780,000 4,778,008
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(cost $4,778,008) 4,778,008
-----------
Number of Market
Shares Value (U.S.$)
WARRANTS - 0.01%
+#American Tower Warrants 144A,
exercise price $0.01,
expiration date 8/1/08 35 $7,998
+#Solutia Warrants 144A,
exercise price $7.59,
expiration date 7/15/09 130 1
------------
TOTAL WARRANTS (cost $13,894) 7,999
------------
TOTAL MARKET VALUE OF SECURITIES BEFORE
SECURITIES LENDING COLLATERAL - 130.00%
(cost $87,664,716) 105,713,660
------------
Principal
Amount
SECURITIES LENDING COLLATERALo - 8.28%
Banc of America Securities LLC
2.08% 12/1/04 $1,086,484 1,086,484
Barclays London 1.92% 1/31/05 51,323 51,304
Bear Stearns 2.12% 3/18/05 231,168 231,362
Beta Finance 2.30% 2/11/05 220,476 219,469
BNP Paribus 2.21% 1/25/05 51,824 51,747
Calyon 2.07% 4/19/05 256,502 256,491
Credit Swiss First Boston NY
1.60% 12/13/04 205,231 205,214
Deutsche Bank Financial 2.13% 2/22/05 51,302 51,316
Deutsche Bank London 1.96% 12/31/04 205,237 205,214
Fannie Mae 1.94% 12/29/04 204,595 204,266
General Electric Capital 2.12% 2/3/05 76,959 76,991
Goldman Sachs Group LP
1.80% 12/21/04 118,010 117,998
2.24% 12/8/04 120,557 120,563
IXIS Corporate & Investment Bank
2.19% 12/31/04 256,517 256,518
Landesbank Hessen 2.19% 12/30/04 259,005 258,801
Lehman Holdings 2.13% 12/23/05 257,746 257,746
Merrill Lynch Mortgage Capital
2.16% 1/12/05 205,214 205,214
Morgan Stanley
2.14% 3/10/05 205,214 205,214
2.21% 1/2/06 51,223 51,304
Nordea Bank New York 2.07% 5/13/05 256,507 256,482
Pfizer 2.02% 1/2/06 246,150 246,257
Proctor and Gamble 1.83% 1/2/06 256,379 256,518
Rabobank, New York 2.15% 3/2/05 256,516 256,486
Royal Bank of Canada 2.14% 6/27/05 256,550 256,473
Sigma Finance 1.97% 9/30/05 241,156 241,072
Societe Generale
2.06% 6/14/05 128,734 128,697
2.15% 12/8/04 205,197 205,201
Union Bank of Switzerland 1.13% 12/20/04 256,594 256,518
Wells Fargo 2.06% 1/2/06 256,518 256,518
Wilmington Trust 2.05% 1/5/05 256,543 256,528
----------
TOTAL SECURITIES LENDING COLLATERAL
(cost $6,729,965) 6,729,965
----------
12
STATEMENT DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC.
OF NET ASSETS (CONTINUED)
TOTAL MARKET VALUE OF SECURITIES - 138.28%
(cost $94,394,681) $112,443,625++
OBLIGATION TO RETURN SECURITIES
LENDING COLLATERAL - (8.28)o (6,729,965)
RECEIVABLES AND OTHER ASSETS
NET OF LIABILITIES - 0.74% 607,648
BORROWING UNDER LINE OF CREDIT - (30.74%) (25,000,000)
------------
NET ASSETS APPLICABLE TO 5,985,582 SHARES
OUTSTANDING; EQUIVALENT TO $13.59 PER
SHARE - 100.00% $ 81,321,308
------------
COMPONENTS OF NET ASSETS AT NOVEMBER 30, 2004(a):
Common stock, $0.01 par value, 500,000,000 shares
authorized to the Fund $ 74,311,525
Treasury stock, 665,065 shares at cost (8,599,291)
Accumulated net realized loss on investments (2,468,796)
Net unrealized appreciation of investments
and foreign currencies 18,077,870
------------
Total net assets $ 81,321,308
============
*Step coupon bond. Indicates security that has a zero coupon that remains
in effect until a predetermined date at which time the stated interest rate
becomes effective.
&Zero coupon security. The interest rate shown is the yield at the time of
purchase.
#Security exempt from registration under Rule 144A of the Securities Act
of 1933. See Note 10 in "Notes to Financial Statements."
+Non-income producing security for the year ended November 30, 2004.
^Fully or partially on loan.
++Includes $6,543,129 of securities loaned.
+Non-income producing security. Security is currently in default.
=Variable Rate Note. The interest rate shown is the rate as of
November 30, 2004.
oSee Note 8 in "Notes to Financial Statements."
(a)See Note 4 in "Notes to Financial Statements."
***Securities have been classified by type of business. Classification by
country of origin has been presented in Note 9 in "Notes to Financial
Statements."
**Principal amount is stated in the currency in which each bond is denominated.
AUD - Australian Dollar
EUR - European Monetary Unit
GBP - Great British Pound
JPY - Japanese Yen
PLZ - Polish Zloty
USD - U.S. Dollar
SUMMARY OF ABBREVIATIONS:
ADR - American Depositary Receipt
AMT - Subject to Alternative Minimum Tax
PIK - Pay-in-Kind
REIT - Real Estate Investment Trust
13
STATEMENT DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC.
OF OPERATIONS Year Ended November 30, 2004
INVESTMENT INCOME:
Dividends $2,198,183
Interest 1,809,434
Securities lending income 19,383
Foreign tax withheld (89,681) $ 3,937,319
---------- ------------
EXPENSES:
Management fees 698,961
Accounting and administration expenses 100,000
Legal and professional fees 49,911
Transfer agent fees 31,979
Custodian fees 27,745
NYSE fees 25,000
Reports to shareholders 14,608
Pricing fees 13,414
Taxes (other than taxes on income) 13,188
Directors' fees 7,943
Other 5,133
----------
Total operating expenses (before interest expense) 987,882
Interest expense 457,393
-----------
Total operating expenses (after interest expense) 1,445,275
Less expense paid indirectly (151)
-----------
Total expenses 1,445,124
-----------
NET INVESTMENT INCOME 2,492,195
-----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain on:
Investments 3,605,072
Foreign currencies 2,053,631
-----------
Net realized gain 5,658,703
Net change in unrealized appreciation/depreciation of investments and foreign currencies 7,225,053
-----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND FOREIGN CURRENCIES 12,883,756
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $15,375,951
===========
See accompanying notes
14
STATEMENTS DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC.
OF CHANGES IN NET ASSETS
Year Ended
11/30/04 11/30/03
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment income $ 2,492,195 $ 3,318,501
Net realized gain on investments and foreign currencies 5,658,703 1,457,350
Net change in unrealized appreciation/depreciation of investments and foreign currencies 7,225,053 13,881,480
----------- -----------
Net increase in net assets resulting from operations 15,375,951 18,657,331
----------- -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM (SEE NOTE 4):
Net investment income (4,880,207) (5,492,967)
Net realized gains (867,345) --
Return of capital -- (994,113)
----------- -----------
(5,747,552) (6,487,080)
----------- -----------
NET INCREASE IN NET ASSETS 9,628,399 12,170,251
NET ASSETS:
Beginning of year 71,692,909 59,522,658
----------- -----------
End of year (there is no undistributed net investment income at either year end) $81,321,308 $71,692,909
=========== ===========
See accompanying notes
STATEMENT DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC.
OF CASH FLOWS Year Ended November 30, 2004
NET CASH (INCLUDING FOREIGN CURRENCY) PROVIDED BY OPERATING ACTIVITIES:
Net increase in net assets resulting from operations $ 15,375,951
------------
Adjustments to reconcile net increase in net assets from operations to cash provided by operating activities:
Amortization of premium and discount on investments 93,537
Net proceeds from investment transactions 24,733
Net realized gain on investment transactions (3,605,072)
Net realized gain on foreign currencies (2,053,631)
Net change in unrealized appreciation/depreciation of investments and foreign currencies (7,225,053)
Increase in receivable for investments sold (723,122)
Increase in interest and dividends receivable (3,490)
Increase in payable for investments purchased 697,367
Increase in interest payable 24,527
Decrease in distribution payable (478,282)
Decrease in accrued expenses and other liabilities (26,875)
------------
Total adjustments (13,275,361)
------------
Net cash provided by operating activities 2,100,590
------------
CASH FLOWS USED FOR FINANCING ACTIVITIES:
Increase in principal on line of credit 4,000,000
Cash dividends and distributions paid (5,747,552)
------------
Net cash used for financing activities (1,747,552)
------------
Effect of exchange rates on cash (174,837)
------------
Net increase in cash 178,201
Cash at beginning of year --
------------
Cash at end of year $ 178,201
============
Cash paid for interest $ 432,866
============
See accompanying notes
15
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
11/30/04 11/30/03 11/30/02(3) 11/30/01 11/30/00
NET ASSET VALUE, BEGINNING OF PERIOD $11.980 $9.940 $11.170 $11.770 $13.920
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(4) 0.416 0.554 0.499 0.620 0.700
Net realized and unrealized gain (loss) on investments
and foreign currencies 2.154 2.570 (0.260) 0.280 (1.350)
------- ------- ------- ------- -------
Total from investment operations 2.570 3.124 0.239 0.900 (0.650)
------- ------- ------- ------- -------
LESS DIVIDENDS AND DISTRIBUTIONS FROM:
Net investment income (0.815) (0.918) (0.365) (0.195) (0.530)
Net realized gain on investments (0.145) -- -- (0.084) (0.470)
Return of capital -- (0.166) (1.104) (1.221) (0.500)
------- ------- ------- ------- -------
Total dividends and distributions (0.960) (1.084) (1.469) (1.500) (1.500)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $13.590 $11.980 $9.940 $11.170 $11.770
======= ======= ======= ======= =======
MARKET VALUE, END OF PERIOD $12.300 $11.900 $10.400 $12.400 $10.380
======= ======= ======= ======= =======
TOTAL RETURN BASED ON:(1)
Market value 12.01% 25.92% (5.49%) 34.52% 0.29%
Net asset value 22.92% 32.63% 0.28% 6.91% (4.04%)
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $81,321 $71,693 $59,523 $66,870 $70,420
Ratio of expenses to average net assets 1.92% 2.04% 2.26% 3.31% 3.45%
Ratio of expenses to adjusted average net assets
(before interest expense)(2) 0.98% 1.08% 1.06% 1.10% 1.04%
Ratio of interest expense to adjusted average net assets(2) 0.46% 0.46% 0.64% 1.35% 1.62%
Ratio of net investment income to average net assets 3.31% 5.14% 4.69% 5.18% 5.34%
Ratio of net investment income to adjusted average net assets(2) 2.48% 3.88% 3.53% 3.84% 4.11%
Portfolio turnover 78% 99% 69% 47% 43%
LEVERAGE ANALYSIS:
Debt outstanding at end of period at par (000 omitted) $25,000 $21,000 $21,000 $25,000 $25,000
Average daily balance of debt outstanding (000 omitted) $24,410 $21,000 $21,603 $25,000 $25,000
Average daily balance of shares outstanding (000 omitted) 5,986 5,986 5,986 5,986 6,389
Average debt per share $4.08 $3.51 $3.61 $4.18 $3.91
Asset coverage per $1,000 of debt outstanding at end of period $4,253 $4,414 $3,834 $3,675 $3,817
(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 premiums and discounts on debt securities. The effect of
this change for the year ended November 30, 2002 was a decrease in net
investment income per share of $0.024, an increase in net realized and
unrealized gain (loss) per share of $0.024, a decrease in the ratio of net
investment income to average net assets of 0.23%, and a decrease in the
ratio of net investment income to adjusted net assets of 0.17%. Per share
data and ratios for the 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
16
NOTES DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC.
TO FINANCIAL STATEMENTS November 30, 2004
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 U.S. generally accepted
accounting principles and are consistently followed by the Fund.
Security Valuation -- Equity securities, except those traded on the Nasdaq Stock
Market, Inc. (NASDAQ), 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 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. 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. Other
securities and assets for which market quotations are not readily available are
valued at fair value as determined in good faith under the direction of the
Fund's Board of Directors. In determining whether market quotations are readily
available or fair valuation will be used, various factors will be taken into
consideration, such as market closures, or with respect to foreign securities,
aftermarket trading or significant events after local market trading (e.g.,
government actions or pronouncements, trading volume or volatility on markets,
exchanges among dealers, or news events).
Federal Income Taxes -- The Fund intends to continue to qualify for federal
income tax purposes as a regulated investment company and make the requisite
distributions to shareholders. Accordingly, no provision for federal income
taxes has been made in the financial statements.
Distributions -- The Fund has a managed distribution policy. Under the policy,
the Fund declares and pays monthly distributions and is managed with a goal of
generating as much of the distribution as possible from ordinary income (net
investment income and short-term capital gains). The balance of the distribution
then comes from long-term capital gains and if necessary, a return of capital.
The current annualized rate is $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 value
of all assets and liabilities denominated in foreign currencies are translated
into U.S. dollars at the exchange rate of such currencies against the U.S.
dollar 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
U.S. generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results could differ
from those estimates.
Other -- 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. Premiums and discounts on
non-convertible debt securities 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.
Through December 31, 2003, certain expenses of the Fund were paid through
commission arrangements with brokers. The amount of these expenses was $151 for
the year ended November 30, 2004. The expense paid under the above arrangement
is included on the Statement of Operations with the corresponding expense offset
shown as "expense 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. Adjusted average weekly
net assets does not include the line of credit liability.
Prior to September 24, 2004, DMC had 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 paid DIAL
a monthly fee which was equal to 40% of the fee paid to DMC under the terms of
the Investment Management Agreement. The Fund did not pay any fees directly to
DIAL.
On September 24, 2004, DIAL was acquired by a venture comprised of certain
members of Delaware International's management and a private equity firm,
Hellman & Friedman, LLC. Immediately following this acquisition, Delaware
International Advisers Ltd. was renamed Mondrian Investment Partners Limited.
DMC had previously informed the Board of Directors of the Fund that it would not
seek to continue the Sub-Advisory Agreement with DIAL and terminated this
Agreement with DIAL shortly before its acquisition. DMC has assumed full day to
day management of the Fund.
The Fund has engaged Delaware Service Company, Inc. (DSC), an affiliate of DMC,
to provide accounting and administration services. The Fund pays DSC a monthly
fee computed at the annual rate of 0.05% of the Fund's adjusted average weekly
net assets, subject to an annual minimum of $100,000.
17
NOTES DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC.
TO FINANCIAL STATEMENTS (CONTINUED)
2. INVESTMENT MANAGEMENT, ADMINISTRATION AGREEMENTS AND OTHER TRANSACTIONS WITH
AFFILIATES (CONTINUED)
At November 30, 2004, the Fund had liabilities payable to affiliates as follows:
Investment management fee payable to DMC $60,434
Accounting and administration fees
and other expenses payable to DSC 19,397
Other expenses payable to DMC and affiliates* 8,994
*DMC, as part of its administration services, pays operating expenses on behalf
of the Fund and is reimbursed on a periodic basis. Such expenses include items
such as printing of shareholder reports, fees for audit, legal and tax
services, stock exchange fees, custodian fees and directors fees.
As provided in the investment management agreement, the Fund bears the cost of
certain legal services expenses, including internal legal services provided to
the Fund by DMC employees. For the year ended November 30, 2004, the Fund was
charged $4,279 for internal legal services provided by DMC.
Certain officers of DMC and DSC are officers and/or directors the Fund. These
officers and directors are paid no compensation by the Fund.
3. INVESTMENTS
For the year ended November 30, 2004, the Fund made purchases of $70,046,963 and
sales of $67,205,309 of long-term investment securities other than long-term
U.S. government securities. For year ended November 30, 2004, the Fund made
purchases of $75,395,367 and sales of $77,970,269 of long-term U.S. government
securities.
At November 30, 2004, the cost of investments for federal income tax purposes
was $94,465,788. At November 30, 2004, the net unrealized appreciation was
$17,977,837, of which $19,827,214 related to unrealized appreciation of
investments and $1,849,377 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 U.S. generally
accepted accounting principles. Additionally, gains (losses) on foreign currency
transaction are treated as ordinary income for federal income tax purposes. The
distributions made by the Fund during the fiscal year ended November 30, 2004
were in excess of the net investment income earned by the Fund for financial
reporting purposes. This was offset by realized gains and therefore there was
not a return of capital for federal income tax purposes. The tax character of
dividends and distributions paid during the years ended November 30, 2004 and
2003 was as follows:
Year Ended
11/30/04 11/30/03
Ordinary Income $5,747,552 $5,492,967
Return of capital -- 994,113
---------- ----------
Total $5,747,552 $6,487,080
========== ==========
As of November 30, 2004, the components of net assets on a tax basis were as
follows:
Shares of beneficial interest $65,712,234
Capital loss carryforwards (2,397,689)
Unrealized appreciation on
investments and foreign currencies 18,006,763
-----------
Net assets $81,321,308
===========
The differences between book basis and tax basis components of net assets are
primarily attributable to tax deferral of losses on wash sales and tax treatment
of market discount and premium on debt instruments.
For financial reporting purposes, capital accounts are adjusted to reflect
the tax character of permanent book/tax differences. For the year ended November
30, 2004, the Fund recorded the following permanent reclassifications.
Reclassifications are primarily due to tax treatment of market discounts and
premiums on certain debt instruments and distributions from net realized gains.
Results of operations and net assets were not affected by these
reclassifications.
Undistributed net investment income $302,496
Accumulated net realized gain (loss) 564,849
Paid-in capital (867,345)
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: $1,675,876 expires in 2010 and $721,813 expires
in 2011. In 2004, the Fund utilized capital loss carryforwards of $3,404,323.
5. CAPITAL STOCK
The Fund did not repurchase any shares under the Share Repurchase Program or
have any transactions in common shares during the year ended November 30, 2004.
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 20, 2005. The Fund intends on extending the
Line of Credit Agreement expiration date to January 19, 2006. At November 30,
2004, the par value of loans outstanding was $25,000,000 at a variable interest
rate of 2.57%. During the year ended November 30, 2004, the average daily
balance of loans outstanding was $24,409,836 at a weighted average interest rate
of approximately 1.87%. The maximum amount of loans outstanding at any time
during the year was $25,000,000. Interest on borrowings is based on market rates
in effect at the time of borrowing. The commitment fee is computed at a rate of
0.15% per annum on the unused balance. For the year ended November 30, 2004, the
Fund was charged fees of $894, which are 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.
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.
No forward foreign currency exchange contracts were outstanding as of November
30, 2004.
18
NOTES DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC.
TO FINANCIAL STATEMENTS (CONTINUED)
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. government 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 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, 2004, the market value of securities on loan was $6,543,129 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. GEOGRAPHIC DISCLOSURE
As of November 30, 2004, the Fund's geographic diversification (based on the
issuer of each security's domicile) of its investments portfolio before security
lending collateral was as follows:
PERCENTAGE
COUNTRY MARKET VALUE OF NET ASSETS
- ----------------------------------------------------------------------
United States $ 60,737,646 74.69%
- ----------------------------------------------------------------------
Britain 8,206,854 10.09%
- ----------------------------------------------------------------------
Germany 5,530,178 6.80%
- ----------------------------------------------------------------------
Australia 4,096,604 5.04%
- ----------------------------------------------------------------------
France 3,957,378 4.87%
- ----------------------------------------------------------------------
Italy 2,912,599 3.58%
- ----------------------------------------------------------------------
Japan 2,823,448 3.47%
- ----------------------------------------------------------------------
Canada 2,199,252 2.70%
- ----------------------------------------------------------------------
Netherlands 2,139,225 2.63%
- ----------------------------------------------------------------------
Belgium 2,038,825 2.51%
- ----------------------------------------------------------------------
Spain 1,970,636 2.42%
- ----------------------------------------------------------------------
Supranational 1,718,217 2.11%
- ----------------------------------------------------------------------
Austria 1,515,534 1.86%
- ----------------------------------------------------------------------
Poland 1,386,961 1.71%
- ----------------------------------------------------------------------
Finland 911,412 1.12%
- ----------------------------------------------------------------------
Hong Kong 839,884 1.03%
- ----------------------------------------------------------------------
New Zealand 817,871 1.01%
- ----------------------------------------------------------------------
Singapore 429,338 0.53%
- ----------------------------------------------------------------------
South Africa 375,536 0.46%
- ----------------------------------------------------------------------
Luxembourg 203,988 0.25%
- ----------------------------------------------------------------------
Norway 188,747 0.23%
- ----------------------------------------------------------------------
British Virgin Islands 106,920 0.13%
- ----------------------------------------------------------------------
Sweden 104,825 0.13%
- ----------------------------------------------------------------------
Bahamas 95,475 0.12%
- ----------------------------------------------------------------------
Ireland 90,000 0.11%
- ----------------------------------------------------------------------
Bermuda 88,294 0.11%
- ----------------------------------------------------------------------
Marshall Island 86,500 0.11%
- ----------------------------------------------------------------------
Liberia 81,563 0.10%
- ----------------------------------------------------------------------
Cayman Islands 59,950 0.08%
- ----------------------------------------------------------------------
TOTAL $105,713,660 130.00%
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 occur in
the countries where the Fund is invested.
19
NOTES DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC.
TO FINANCIAL STATEMENTS (CONTINUED)
10. CREDIT AND MARKET RISKS
Some countries in which the Fund may invest require governmental approval for
the repatriation of investment income, capital or the proceeds of sales of
securities by foreign investors. In addition, if there is deterioration in a
country's balance of payments or for other reasons, a country may impose
temporary restrictions on foreign capital remittances abroad.
The securities exchanges of certain foreign markets are substantially smaller,
less liquid and more volatile than the major securities markets in the United
States. Consequently, acquisition and disposition of securities by the Fund may
be inhibited. In addition, a significant portion of the aggregate market value
of equity securities listed on the major securities exchanges in emerging
markets are held by a smaller number of investors. This may limit the number of
shares available for acquisition or disposition by the Fund.
The Fund invests in high-yield fixed income securities, which carry ratings of
BB or lower by Standard & Poor's Ratings Group and/or Ba or lower by Moody's
Investors Service. Investments in these higher yielding securities are generally
accompanied by a greater degree of credit risk than higher rated securities.
Additionally, lower rated securities may be more susceptible to adverse economic
and competitive industry conditions than investment grade securities.
The Fund may invest up to 10% of its total assets in illiquid securities, which
may include securities with contractual restrictions on resale, securities
exempt from registration under Rule 144A of the Securities Act of 1933, as
amended, and other securities which may not be readily marketable. The relative
illiquidity of these securities may impair the Fund from disposing of them in a
timely manner and at a fair price when it is necessary or desirable to do so.
The Fund invests in real estate investment trusts (REITs) and is subject to some
of the risks associated with that industry. If the Fund holds real estate
directly as a result of defaults or receives rental income directly from real
estate holdings, its tax status as a regulated investment company may be
jeopardized. There were no direct holdings during the year ended November 30,
2004. 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.
11. CONTRACTUAL OBLIGATIONS
The Fund enters into contracts in the normal course of business that contain a
variety of indemnifications. The Fund's maximum exposure under these
arrangements is unknown. However, the Fund has not had prior claims or losses
pursuant to these contracts. Management has reviewed the Fund's existing
contracts and expects the risk of loss to be remote.
20
REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
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 the Delaware
Investments Global Dividend and Income Fund, Inc. (the "Fund") as of November
30, 2004, 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 the standards of the Public Company
Accounting Oversight Board (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, 2004, 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 the
Delaware Investments Global Dividend and Income Fund, Inc. at November 30, 2004,
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 U.S. generally accepted accounting principles.
/s/ Ernst & Young LLP
Philadelphia, Pennsylvania
January 11, 2005
21
OTHER DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC.
FUND INFORMATION
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, 2004, 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)
- ------------- ------------- ----------- ------------ ------------
-- 100% -- 100% 15%
(A) (B) and (C) are based on a percentage of the Fund's total distributions.
(D) is based on a percentage of the Fund's ordinary income distributions.
(1) Qualifying dividends represent dividends which qualify for the corporate
dividends received deduction.
For the fiscal year ended November 30, 2004, 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 up to a maximum amount
of $5,747,552 to be taxed at a maximum rate of 15%. Complete information will be
computed and reported in conjunction with your 2004 Form 1099-DIV.
CHANGE TO FUND'S INVESTMENT OBJECTIVES AND POLICIES (UNAUDITED)
As approved by the Fund's Board of Directors, the Fund will consider American
Depositary Receipts ("ADRs") purchased by the Fund to be foreign securities
under the Fund's investment objectives and policies.
CORPORATE GOVERNANCE (UNAUDITED)
The Fund's audit committee charter is available on its web site at
http://www.delawareinvestments.com, and the charter is also available in print
to any shareholder who requests it. The Fund submitted its Annual CEO
certification for 2004 to the NYSE on September 17, 2004 stating that the CEO
was not aware of any violation by the Fund of the NYSE's corporate governance
listing standards. In addition, the Fund has filed the required CEO/CFO
certifications regarding the quality of the Fund's public disclosure as exhibits
to the Form N-CSRs and Form N-Qs filed by the Fund over the past fiscal year.
The Fund's Form N-CSR and Form N-Q filings are available on the Commission's web
site at http://www.sec.gov.
PROXY RESULTS (UNAUDITED)
The Fund held its Annual Meeting of Shareholders on August 19, 2004.
At the Annual Meeting, the Fund's shareholders elected eight 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 4,580,004 93,096 --
- --------------------------------------------------------------------------------
Walter P. Babich 4,573,434 99,666 --
- --------------------------------------------------------------------------------
John H. Durham 4,578,623 94,477 --
- --------------------------------------------------------------------------------
John A. Fry 4,580,804 92,296 --
- --------------------------------------------------------------------------------
Anthony D. Knerr 4,580,123 92,977 --
- --------------------------------------------------------------------------------
Ann R. Leven 4,579,204 93,896 --
- --------------------------------------------------------------------------------
Thomas F. Madison 4,578,766 94,334 --
- --------------------------------------------------------------------------------
Janet L. Yeomans 4,579,454 93,646 --
- --------------------------------------------------------------------------------
22
BOARD OF DIRECTORS AND OFFICERS ADDENDUM
A 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 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 and Officers with 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 Served Past 5 Years or Officer or Officer
- -----------------------------------------------------------------------------------------------------------------------------------
INTERESTED DIRECTOR
JUDE T. DRISCOLL(2) Chairman, President 4 Years - Since August 2000, 75 None
2005 Market Street Chief Executive Officer Executive Officer Mr. Driscoll has served in
Philadelphia, PA and Director(4) various executive capacities
19103 1 year - at different times at
Trustee Delaware Investments(1)
March 10, 1963
Senior Vice President and
Director of Fixed-Income Process -
Conseco Capital Management
(June 1998 - August 2000)
- -----------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT DIRECTORS
WALTER P. BABICH Director 16 Years Board Chairman - 92 None
2005 Market Street Citadel Construction Corporation
Philadelphia, PA (1989 - Present)
19103
October 1, 1927
JOHN H. DURHAM Director 25 Years(3) Private Investor 92 Trustee - Abington
2005 Market Street Memorial Hospital
Philadelphia, PA
19103
August 7, 1937 President/Director -
22 WR Corporation
JOHN A. FRY Director(4) 3 Years President - 75 Director -
2005 Market Street Franklin & Marshall College Community Health
Philadelphia, PA (June 2002 - Present) Systems
19103
Executive Vice President -
University of Pennsylvania
May 28, 1960 (April 1995 - June 2002)
ANTHONY D. KNERR Director 11 Years Founder/Managing Director - 92 None
2005 Market Street Anthony Knerr & Associates
Philadelphia, PA (Strategic Consulting)
19103 (1990 - Present)
December 7, 1938
23
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 Served Past 5 Years or Officer or Officer
- -----------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT DIRECTORS (CONTINUED)
ANN R. LEVEN Director 15 Years Treasurer/Chief Fiscal Officer - 92 Director and
2005 Market Street National Gallery of Art Audit Committee
Philadelphia, PA (1994 - 1999) Chairperson - Andy
19103 Warhol Foundation
Director -
Systemax Inc.
November 1, 1940
THOMAS F. MADISON Director 10 Years President/Chief 92 Director -
2005 Market Street Executive Officer - Banner Health
Philadelphia, PA MLM Partners, Inc.
19103 (Small Business Investing Director -
and Consulting) CenterPoint Energy
(January 1993 - Present)
February 25, 1936 Director -
Digital River Inc.
Director - Rimage
Corporation
Director - Valmont
Industries, Inc.
JANET L. YEOMANS Director 5 Years Vice President/Mergers & 92 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 1 Year Mr. Hastings has served in 92 None(5)
2005 Market Street Vice President various executive capacities
Philadelphia, PA and at different times at
19103 Chief Financial Delaware Investments.
Officer
Decenber 19, 1949
RICHELLE S. MAESTRO Executive Vice President, 1 Year Ms. Maestro has served in 92 None(5)
2005 Market Street Chief Legal Officer various executive capacities
Philadelphia, PA and Secretary at different times at
19103 Delaware Investments.
November 26, 1957
MICHAEL P. BISHOF Senior Vice President 8 Years Mr. Bishof has served in 92 None(5)
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 and
its administrator.
(2) Mr. Driscoll is considered to be an "Interested Trustee" 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 funds 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.
(5) Mr. Hastings, Mr. Bishof and Ms. Maestro also serve in similar capacities
for the six portfolios of the Optimum Fund Trust, which have the same
investment advisor and administrator as the registrant.
24
Delaware [LOGO OMITTED]
Investments(SM)
- --------------------------------------
A member of Lincoln Financial Group(R)
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 PRINCIPAL OFFICE OF THE FUND
WALTER P. BABICH 2005 Market Street
Board Chairman RICHELLE S. MAESTRO Philadelphia, PA 19103
Citadel Construction Corporation Executive Vice President,
King of Prussia, PA Chief Legal Officer and Secretary INDEPENDENT REGISTERED PUBLIC
Delaware Investments Family of Funds ACCOUNTING FIRM
JOHN H. DURHAM Philadelphia, PA Ernst & Young LLP
Private Investor 2001 Market Street
Gwynedd Valley, PA MICHAEL P. BISHOF Philadelphia, PA 19103
Senior Vice President and Treasurer
JOHN A. FRY Delaware Investments Family of Funds REGISTRANT AND STOCK TRANSFER AGENT
President Philadelphia, PA Mellon Investor Services, LLC
Franklin & Marshall College Overpeck Centre
Lancaster, PA +-----------------------------------------+ 85 Challenger Road
| The Fund files its complete schedule | Ridgefield, NJ 07660
ANTHONY D. KNERR | of portfolio holdings with the | 800 851-9677
Managing Director | Securities and Exchange Commission for |
Anthony Knerr & Associates | the first and third quarters of each | FOR SECURITIES DEALERS AND FINANCIAL
New York, NY | fiscal year on Form N-Q. The Fund's | INSTITUTIONS REPRESENTATIVES ONLY
| Forms N-Q, as well as a description of | 800 362-7500
ANN R. LEVEN+ | the policies and procedures that the |
Former Treasurer/Chief Fiscal Officer | Fund uses to determine how to vote | WEB SITE
National Gallery of Art | proxies (if any) relating to portfolio | www.delawareinvestments.com
Washington, DC | securities is available without charge |
| (i) upon request, by calling 800 |
THOMAS F. MADISON+ | 523-1918; (ii) on the Fund's Web site |
President and Chief Executive Officer | at http://www.delawareinvestments.com; |
MLM Partners, Inc. | and (iii) on the Commission's Web site |
Minneapolis, MN | at http://www.sec.gov. The Fund's |
| Forms N-Q may be reviewed and copied |
JANET L. YEOMANS+ | at the Commission's Public Reference |
Vice President/Mergers & Acquisitions | Room in Washington, DC; information on | +----------------------------------------+
3M Corporation | the operation of the Public Reference | | YOUR REINVESTMENT OPTIONS |
St. Paul, MN | Room may be obtained by calling | | Delaware Investments Global Dividend |
| 1-800-SEC-0330. | | and Income Fund, Inc. offers an |
| | | automatic dividend reinvestment |
| Information (if any) regarding how the | | program. If you would like to reinvest |
| Fund voted proxies relating to | | dividends, and shares are registered |
| portfolio securities during the most | | in your name, contact Mellon Investor |
| recently disclosed 12-month period | | Services, LLC at 800 851-9677. You |
| ended June 30 is available without | | will be asked to put your request in |
| charge (i) through the Fund's Web site | | writing. If you have shares registered |
| at http://www.delawareinvestments.com; | | in "street" name, contact the broker/ |
| and (ii) on the Commission's Web site | | dealer holding the shares or your |
| at http://www.sec.gov. | | financial advisor. |
+-----------------------------------------+ +----------------------------------------+
+ Audit Committee Member
(9099) Printed in the USA
AR-DGF [11/04] IVES 1/05 J9930
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
(a) Audit fees.
The aggregate fees billed for services provided to the Registrant by
its independent auditors for the audit of the Registrant's annual financial
statements and for services normally provided by the independent auditors in
connection with statutory and regulatory filings or engagements were $29,250 for
the fiscal year ended November 30, 2004.
The aggregate fees billed for services provided to the Registrant by
its independent auditors for the audit of the Registrant's annual financial
statements and for services normally provided by the independent auditors in
connection with statutory and regulatory filings or engagements were $26,025 for
the fiscal year ended November 30, 2003.
_______________________
(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.
(b) Audit-related fees.
The aggregate fees billed by the Registrant's independent auditors for
services relating to the performance of the audit of the Registrant's financial
statements and not reported under paragraph (a) of this Item were $0 for the
fiscal year ended November 30, 2004. The percentage of these fees relating to
services approved by the Registrant's Audit Committee pursuant to the de minimis
exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of
Regulation S-X was 0%.
The aggregate fees billed by the Registrant's independent auditors for
services relating to the performance of the audit of the financial statements of
the Registrant's investment adviser(s) and other service providers under common
control with the adviser(s) and that relate directly to the operations or
financial reporting of the Registrant were $21,350 for the Registrant's fiscal
year ended November 30, 2004. The percentage of these fees relating to services
approved by the Registrant's Audit Committee pursuant to the de minimis
exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of
Regulation S-X was 0%. These audit-related services were as follows: issuance of
agreed upon procedures reports to the Registrant's Board in connection with the
annual fund accounting service agent contract renewal and the pass-through of
internal legal cost relating to the operations of the Registrant.
The aggregate fees billed by the Registrant's independent auditors for
services relating to the performance of the audit of the Registrant's financial
statements and not reported under paragraph (a) of this Item were $0 for the
fiscal year ended November 30, 2003. The percentage of these fees relating to
services approved by the Registrant's Audit Committee pursuant to the de minimis
exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of
Regulation S-X was 0%.
The aggregate fees billed by the Registrant's independent auditors for
services relating to the performance of the audit of the financial statements of
the Registrant's investment adviser(s) and other service providers under common
control with the adviser(s) and that relate directly to the operations or
financial reporting of the Registrant were $15,750 for the Registrant's fiscal
year ended November 30, 2003. The percentage of these fees relating to services
approved by the Registrant's Audit Committee pursuant to the de minimis
exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of
Regulation S-X was 0%. These audit-related services were as follows: issuance of
agreed upon procedures reports to the Registrant's Board in connection with the
annual fund accounting service agent contract renewal and the pass-through of
internal legal cost relating to the operations of the Registrant.
(c) Tax fees.
The aggregate fees billed by the Registrant's independent auditors for
tax-related services provided to the Registrant were $1,750 for the fiscal year
ended November 30, 2004. The percentage of these fees relating to services
approved by the Registrant's Audit Committee pursuant to the de minimis
exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of
Regulation S-X was 0%. These tax-related services were as follows: review of
income tax returns and review of annual excise distribution calculations.
The aggregate fees billed by the Registrant's independent auditors for
tax-related services provided to the Registrant's investment adviser(s) and
other service providers under common control with the adviser(s) and that relate
directly to the operations or financial reporting of the Registrant were $0 for
the Registrant's fiscal year ended November 30, 2004. The percentage of these
fees relating to services approved by the Registrant's Audit Committee pursuant
to the de minimis exception from the pre-approval requirement in Rule
2-01(c)(7)(i)(C) of Regulation S-X was 0%.
The aggregate fees billed by the Registrant's independent auditors for
tax-related services provided to the Registrant were $1,250 for the fiscal year
ended November 30, 2003. The percentage of these fees relating to services
approved by the Registrant's Audit Committee pursuant to the de minimis
exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of
Regulation S-X was 0%. These tax-related services were as follows: review of
income tax returns and review of annual excise distribution calculations.
The aggregate fees billed by the Registrant's independent auditors for
tax-related services provided to the Registrant's adviser(s) and other service
providers under common control with the adviser(s) and that relate directly to
the operations or financial reporting of the Registrant were $0 for the
Registrant's fiscal year ended November 30, 2003. The percentage of these fees
relating to services approved by the Registrant's Audit Committee pursuant to
the de minimis exception from the pre-approval requirement in Rule
2-01(c)(7)(i)(C) of Regulation S-X was 0%.
(d) All other fees.
The aggregate fees billed for all services provided by the independent
auditors to the Registrant other than those set forth in paragraphs (a), (b) and
(c) of this Item were $0 for the fiscal year ended November 30, 2004. The
percentage of these fees relating to services approved by the Registrant's Audit
Committee pursuant to the de minimis exception from the pre-approval requirement
in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%.
The aggregate fees billed for all services other than those set forth
in paragraphs (b) and (c) of this Item provided by the Registrant's independent
auditors to the Registrant's adviser(s) and other service providers under common
control with the adviser(s) and that relate directly to the operations or
financial reporting of the Registrant were $0 for the Registrant's fiscal year
ended November 30, 2004. The percentage of these fees relating to services
approved by the Registrant's Audit Committee pursuant to the de minimis
exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of
Regulation S-X was 0%.
The aggregate fees billed for all services provided by the independent
auditors to the Registrant other than those set forth in paragraphs (a), (b) and
(c) of this Item were $0 for the fiscal year ended November 30, 2003. The
percentage of these fees relating to services approved by the Registrant's Audit
Committee pursuant to the de minimis exception from the pre-approval requirement
in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%.
The aggregate fees billed for all services other than those set forth
in paragraphs (b) and (c) of this Item provided by the Registrant's independent
auditors to the Registrant's adviser(s) and other service providers under common
control with the adviser(s) and that relate directly to the operations or
financial reporting of the Registrant were $0 for the Registrant's fiscal year
ended November 30, 2003. The percentage of these fees relating to services
approved by the Registrant's Audit Committee pursuant to the de minimis
exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of
Regulation S-X was 0%.
(e) The Registrant's Audit Committee has not established pre-approval
policies and procedures as permitted by Rule 2-01(c)(7)(i)(B) of Regulation S-X.
(f) Not applicable.
(g) The aggregate non-audit fees billed by the Registrant's independent
auditors for services rendered to the Registrant and to its investment
adviser(s) and other service providers under common control with the adviser(s)
were $340,584 and $218,805 for the Registrant's fiscal years ended November 30,
2004 and November 30, 2003, respectively.
(h) In connection with its selection of the independent auditors, the
Registrant's Audit Committee has considered the independent auditors' provision
of non-audit services to the Registrant's investment adviser(s) and other
service providers under common control with the adviser(s) that were not
required to be pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X.
The Audit Committee has determined that the independent auditors' provision of
these services is compatible with maintaining the auditors' independence.
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.
Item 6. Schedule of Investments
Included as part of report to shareholders filed under Item 1 of this
Form N-CSR.
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 generally determined on a
case-by-case basis; (vii) generally vote for reports on the level of greenhouse
gas emissions from a company's operations and products; and (viii) generally
vote for proposals requesting the company to report on its policies and
practices related to social, environmental and economic sustainability.
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. Portfolio Managers of Closed-End Management Investment Companies
Applicable to Form N-CSRs filed for fiscal years ending on or after
December 31, 2005.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Companies and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
Not applicable.
Item 11. 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 second fiscal quarter of the
period covered by the report to stockholders included herein (i.e., the
registrant's fourth fiscal quarter) that have materially affected, or are
reasonably likely to materially affect, the registrant's internal control over
financial reporting.
Item 12. 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.
(3) Written solicitations to purchase securities pursuant to Rule 23c-1
under the Securities Exchange Act of 1934.
Not applicable.
(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
- ---------------------------------
By: Jude T. Driscoll
Title: Chairman
Date: 2/1/05
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: 2/1/05
JOSEPH H. HASTINGS
- ---------------------------------
By: Joseph H. Hastings
Title: Chief Financial Officer
Date: 2/1/05