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: David F. Connor, 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, 2005
Item 1. Reports to Stockholders
Delaware
Investments(R)
------------------------------------
A member of Lincoln Financial Group
CLOSED-END
ANNUAL REPORT NOVEMBER 30, 2005
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DELAWARE INVESTMENTS
GLOBAL DIVIDEND AND INCOME FUND, INC.
[GRAPHIC OMITTED] POWERED BY RESEARCH(R)
TABLE
OF CONTENTS
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PORTFOLIO MANAGEMENT REVIEW 1
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PERFORMANCE SUMMARY 4
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SECTOR/COUNTRY ALLOCATION 6
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FINANCIAL STATEMENTS:
Statement of Net Assets 8
Statement of Operations 15
Statements of Changes in Net Assets 16
Statement of Cash Flows 17
Financial Highlights 18
Notes to Financial Statements 19
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REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM 23
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OTHER FUND INFORMATION 24
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BOARD OF TRUSTEES/DIRECTORS AND OFFICERS 27
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ABOUT THE ORGANIZATION 29
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Funds are not FDIC insured and are not guaranteed. It is possible to lose
the principal amount invested.
Investment advisory services provided by Delaware Management Company, a
series of Delaware Management Business Trust, which is a registered
investment advisor.
(C) 2006 Delaware Distributors, L.P.
PORTFOLIO DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC.
MANAGEMENT REVIEW December 13, 2005
FUND MANAGERS
Zoe Neale Timothy L. Rabe
Co-Manager Co-Manger
D. Tysen Nutt, Jr. Damon J. Andres
Co-Manager Co-Manager
Anthony A. Lombardi Philip R. Perkins
Co-Manager Co-Manager
Jordan L. Irving Edward Gray
Co-Manager Co-Manager
Robert A. Vogel, Jr.
Co-Manager
During the fiscal year ended November 30, 2005, D. Tysen Nutt, Jr., Jordan L.
Irving, Anthony A. Lombardi, and Robert A. Vogel, Jr. (the "New Equity Team")
were appointed co-portfolio managers of the Fund. The New Equity Team replaced
Nancy M. Crouse, and will work with Damon J. Andres with respect to managing the
U.S. equity portion of the Fund. In addition, on June 21, 2005, Zoe Neale and
Edward A. Gray (the "New International Team") were appointed as co-portfolio
managers of the Fund. The New International Team replaced Mr. Andres in managing
the international equity portion of the Fund. The New International Team and the
New Equity Team will work with Mr. Andres and Mr. Rabe in making day-to-day
decisions for the Fund.
PLEASE DISCUSS THE INVESTMENT ENVIRONMENT DURING THE YEAR.
The global economy was generally strong during the year ended November 30,
2005. We believe increased demand for energy and other commodities, rising
interest rates, and election surprises often drove the direction of many
international equity markets. The continued robust growth of the Chinese economy
was an important factor in evaluating global economic conditions.
In the U.S., the Federal Reserve steadily increased short term interest rates in
the form of the fed funds rate--a factor which has had a significant impact on
equity and fixed income markets.
Q: HOW DID THE FUND PERFORM VERSUS ITS BENCHMARK INDEX
AND FUND PEER GROUP FOR THE ONE-YEAR PERIOD ENDED NOVEMBER 30, 2005?
A: Delaware Investments Global Dividend and Income Fund, Inc., a diversified
closed-end fund, returned +4.43% at net asset value and +17.22% at market price
(both figures reflect all distributions reinvested) for the fiscal year ended
November 30, 2005. For complete, annualized performance, please see the table on
page 4. During the same 12-month period, the Fund's equity benchmark, the S&P
500 Index, returned 8.44%. Funds in the Lipper Closed-End Income and Preferred
Stock Funds category averaged gains of 5.92% at net asset value (source: Lipper,
Inc.).
PLEASE DISCUSS THE FUND'S PERFORMANCE WITH REGARD TO U.S. EQUITY INVESTMENTS.
In March 2005, the Delaware Investments(R) Large-Cap Value Equity Team of Ty
Nutt, Jordan Irving, Anthony Lombardi, and Robert Vogel took over day-to-day
operations of the U.S.-based equity investments within Delaware Investments
Global Dividend and Income Fund, Inc. In July 2005, Zoe Neale and Edward Gray
were added to the Fund as co-managers of non-U.S. equities.
As stock investors, both teams consider themselves long-term, buy-and-hold
investors. However, these transitions resulted in a higher-than-average annual
turnover rate for the Fund for its fiscal year, as the equity allocations were
adjusted shortly after the management change. We do expect the Fund's turnover
level to be much lower going forward.
During the 12-month period, the Fund's common stocks trailed its collective
equity benchmark, the S&P 500 Index. We attribute performance to individual
security selection and sector allocations. The strongest returns came from the
industrial sector. We also benefited from our positioning in the information
technology sector. Hewlett-Packard, one of our strongest holdings in this group,
was the beneficiary of a successful corporate restructuring that included
management changes. The company benefited in particular from its imaging
business. Overall, we remain confident about Hewlett-Packard's long-term
prospects. The company offers investors a fairly diversified line of businesses,
and we believe that its improved efficiency and earnings were reflected in
attractive valuations at the close of the period.
1
Another positive contributor to performance was Boeing, which has undergone a
series of restructuring steps and installed a new management team to improve
efficiency and productivity. The strong performance in Boeing's commercial
aircraft division was boosted by orders for its new 787 Dreamliner and increased
travel in Asia.
Our holdings in the consumer staples and healthcare sectors hurt performance.
The stock performance of both Pfizer and Merck, in particular, proved
disappointing during the fiscal year. Growing concern about the number of drugs
coming off patent and the impact of generic competition was compounded by an
unfavorable outlook for new product development. In addition, potential legal
liabilities related to the withdrawal of Merck's Vioxx in 2004 and Pfizer's
Bextra in April 2005 had a significant impact on valuations. We believe that
these companies have suffered unfairly, and remain optimistic that they will
benefit from strong franchises, healthy balance sheets, improving cash flow, and
attractive dividend generation over the next three to five years.
Results for the Fund internationally were, in our opinion, generally mixed.
Other positive performers held included Mitsubishi Tokyo Financial, Australian
mining company Rio Tinto, and Mexico's Cemex. Conversely, Metro was among the
Fund's international holdings that detracted from performance.
Q: HOW DID THE FUND'S REIT INVESTMENTS PERFORM?
A: The Fund's REIT investments contributed positively to overall performance as
this asset class turned in another strong year. During the period, we had
exposure to mortgage REITs, which underperformed due to concerns about consumer
credit and the housing market. Our investment strategy is focused on identifying
high-quality securities with attractive dividend yields, while avoiding rich
valuations and stressed balance sheets.
PLEASE DISCUSS SOME REITS OR REIT SECTORS THAT PERFORMED WELL AND SOME
THAT DID NOT.
The Fund benefited from Simon Property Group, a regional mall company with
strong internal growth that during the year acquired Chelsea Property Group, the
world's largest owner and operator of outlet centers. This acquisition
represents an attractive complement to Simon's overall business strategy and
development line.
The portfolio's position in Great Wolf Resorts, an entertainment resort company
in the consumer discretionary sector, generated disappointing performance. We
were adversely impacted by a variety of factors, including earnings
misrepresentation and poor corporate management. As investors, we believe a
buyout may be imminent for the company, which could lead to brighter long-term
prospects. A light weighting in the multifamily housing sector, which performed
well, also served as a drag on the performance of our REIT allocation compared
to the NAREIT Equity REIT Index. We maintained lesser exposure than the NAREIT
Equity REIT Index in this sector due to our concerns about the long-term
prospects for new home and condominium construction.
2
Q: HOW DID THE PORTFOLIO'S FIXED INCOME INVESTMENTS FARE DURING THE YEAR?
A: Overall, the Fund's investments in high yield corporate bonds performed
positively on an absolute basis, despite a difficult environment for the sector.
Credit ratings downgrades to General Motors and Ford Motor Company were a big
story and had a negative impact on the market for non-investment grade bonds in
general. That sector was further penalized by several high profile corporate
bankruptcy filings by Northwest, Delta, and Delphi, which occurred prior to
sweeping bankruptcy reform. Though defaults among issuers in the sector remained
low, the negative effect of the Treasury market and tightening spreads created a
drag on performance.
Within these markets, we continued to thoroughly research new offerings - and
especially first-time issuers - before investing. We have been especially
cautious about deals that may be used solely for a dividend.
During the fiscal year, high yield bonds, as measured by the Bear Stearns High
Yield Index, gained 6.52%, a return that trailed the S&P 500 Index. Overall
performance in the Fund benefited when issuers of certain securities we held
were acquired during the period.
Conversely, we experienced disappointing performance from embattled power
producer Calpine, which teetered on the verge of bankruptcy. Our position in
Charter Communications, a highly leveraged broadband communications company,
also suffered from weakening valuations.
3
PERFORMANCE SUMMARY
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 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, 2005 Lifetime Ten Years Five Years One Year
- -------------------------------------------------------------------------------------------------------------
At Market Value +9.51% +10.47% +16.01% +17.22%
At Net Asset Value +10.01% +10.05% +12.79% +4.43%
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Returns reflect reinvestment of all distributions. 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 policy. 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 is not a guarantee of future
results.
The performance table and graphs on the following page do not reflect the
deductions of taxes the shareholder would pay on Fund distributions or sale of
Fund shares.
FUND BASICS
As of November 30, 2005
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FUND OBJECTIVES:
The Fund seeks to achieve high current income and,
secondarily, capital appreciation. total fund
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NET ASSETS:
$72 million
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NUMBER OF HOLDINGS:
343
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FUND START DATE:
March 4, 1994
YOUR FUND MANAGERS:
Zoe Neale joined Delaware Investments in June 2005 to develop Delaware
Investments' new International Value Equity team. She came from Arborway
Capital, which she founded in January 2005. Ms. Neale co-manages the
international equity portion of the Fund. Previously, she led the International
Value Strategies business at Thomas Weisel Asset Management (TWAM), joining TWAM
when it acquired ValueQuest/TA in 2002. Ms. Neale spent six years at ValueQuest
as a senior investment professional with portfolio management and global
research responsibilities for several sectors. She was an assistant vice
president and portfolio manager for Anchor Capital Advisors, with generalist
research responsibilities. Ms. Neale received her bachelor's degree in economics
at the University of Texas, Austin, and an MBA from Northeastern University
(Mass.).
D. Tysen Nutt joined Delaware Investments in 2004. Mr. Nutt began his investment
career in 1983 at Dean Witter Reynolds where he advanced to vice president,
Investments. In 1988, he joined investment advisor Van Deventer & Hoch (V&H),
where he managed large cap value portfolios for both institutions and private
clients. As a senior vice president at V&H, he was a member of the firm's
Management Committee and directed new business development in addition to his
portfolio management duties. Mr. Nutt moved to Merrill Lynch Investment Managers
in 1994 and later served as leader of the U.S. Active Large Cap Value Team,
managing mutual funds and separate accounts for institutions and private
clients. He is a member of the New York Society of Security Analysts and the CFA
Institute. Mr. Nutt graduated from Dartmouth College with a BA.
Anthony A. Lombardi joined Delaware Investments in 2004. Mr. Lombardi's first
financial services position was as an Investment Analyst with Crossland Savings,
FSB, Brooklyn, NY from 1989-1990. He started at Dean Witter Reynolds, Inc. as a
research assistant in 1990 and rose to the position of vice president, research
analyst, which he held from 1993-1997. He then moved to Merrill Lynch Investment
Managers (MLIM) in 1998, joining the Capital Management Group, and became a
portfolio manager with the U.S. Active Large Cap Value Team in 2000. He departed
MLIM as a director. He is a Chartered Financial Analyst and a member of the New
York Society of Security Analysts and the CFA Institute. Mr. Lombardi graduated
from Hofstra University with a BBA and MBA in Finance.
Robert A. Vogel, Jr. joined Delaware Investments in 2004. Prior to that, Mr.
Vogel started his financial services career as a financial consultant with
Merrill Lynch in 1992. He then moved to Merrill Lynch Investment Managers (MLIM)
in 1997, joining the Capital Management Group, and became a portfolio manager
with the U.S. Active Large Cap Value Team in 1998. He departed MLIM as a
Director. In 2004, Mr. Vogel joined Delaware Investments as vice president,
senior portfolio manager. Mr. Vogel is a Chartered Financial Analyst and a
member of the New York Society of Security Analysts and the CFA Institute. Mr.
Vogel graduated from Loyola College in Maryland earning both his BBA and MS in
Finance. He earned his MBA with a concentration in Finance at the Wharton School
of Business at the University of Pennsylvania.
Timothy L. Rabe joined Delaware Investments in 2000. Mr. Rabe was a high-yield
portfolio manager for Conseco Capital Management. Before that, he worked as a
tax analyst for The Northern Trust Company. Mr. Rabe received a bachelor's
degree in finance from the University of Illinois. He is a CFA charterholder.
Damon J. Andres joined Delaware Investments in 1994. Previously, Mr. Andres
performed investment consulting services with Cambridge Associates, Inc. in
Arlington, Virginia. Mr. Andres earned a bachelor's degree in Business
Administration with an emphasis in finance and accounting from the University of
Richmond. He is also co-manager of Delaware REIT Fund.
Philip R. Perkins joined Delaware Investments from Deutsche Bank A.G., where he
served as a managing director in Global Markets. He was COO for the Bank's
Emerging Markets Division, based in London. From 1998 to 2001, he was based in
Moscow and responsible for Local Markets Trading.
4
Prior to that, Mr. Perkins was chief executive officer of Dinner Key Advisors
Inc., a registered broker-dealer founded to trade derivative mortgage backed
bonds with institutional clients. He began his career at Salomon Brothers, where
he was a mortgage/CMO trader from 1985 to 1990. Mr. Perkins holds a B.A. from
the University of Notre Dame.
Edward A. Gray, CFA, joined Delaware Investments in June 2005 as
co-portfolio manager on the International Value Equity team. An 18-year industry
veteran, he co-founded Arborway Capital with Ms. Neale and co-manages the
international equity portion of the closed-end Delaware Investments Global
Dividend and Income Fund, Inc. Mr. Gray was also the co-portfolio manager for
International Equity at TWAM and ValueQuest/TA. He also served as a research
analyst at the Center for Competitive Analysis. Mr. Gray received his bachelor's
degree from Reed College, Portland, and his MALD (master's of arts in Law and
Diplomacy) from Tufts University's Fletcher School of Law and Diplomacy.
Jordan L. Irving joined Delaware Investments in 2004. He joined Merrill Lynch
Investment Managers (MLIM) as a portfolio manager in 1998. In 2004, Mr. Irving
joined Delaware Investments as vice president, senior portfolio manager. Mr.
Irving graduated from Yale University with a BA in American Studies and earned a
Special Diploma in Social Studies at Oxford University the following year.
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NYSE SYMBOL:
DGF
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MARKET PRICE VS. NET ASSET VALUE
November 30, 2004 through November 30, 2005
Delaware Dividend & Delaware Dividend &
Income Fund, Inc.- Market Price Income Fund, Inc.- NAV
- ------------------------------------------------------------------------------------
11/30/2004 $11.76 $12.97
12/31/2004 $12.13 $13.38
1/31/2005 $12.31 $12.95
2/28/2005 $12.17 $13.19
3/31/2005 $11.43 $12.81
4/30/2005 $11.57 $12.60
5/31/2005 $11.99 $12.72
6/30/2005 $12.51 $13.04
7/31/2005 $12.73 $13.52
8/31/2005 $12.86 $13.12
9/30/2005 $12.34 $12.98
10/31/2005 $12.25 $12.41
11/30/2005 $12.55 $12.65
Past performance is not a guarantee of future results.
PERFORMANCE OF A $10,000 INVESTMENT
November 30, 1995 through November 30, 2005
Lipper Closed-
Delaware Lipper Closed- End
Delaware Investments End Income and
Investments Global Dividend Income and Preferred
Global Dividend and Income Fund, Preferred Stock Funds
and Income Fund, Inc. @ Market Stock Funds Average @ Market
Inc. @ NAV Price Average @ NAV Price
- ------------------------------------------------------------------------------------------------------------
11/30/95 10,000 10,000 10,000 10,000
11/30/96 12,410 12,742 11,273 11,494
11/30/97 14,635 15,160 13,202 13,336
11/30/98 14,956 15,471 14,320 14,737
11/30/99 14,870 12,841 13,591 12,548
11/30/00 14,270 12,878 14,636 13,815
11/30/01 15,256 17,324 15,746 17,386
11/30/02 15,298 16,373 14,743 16,657
11/30/03 20,290 20,617 18,271 20,816
11/30/04 24,941 23,093 20,611 22,655
11/30/05 26,046 27,069 21,831 22,840
Chart assumes $10,000 invested in the Fund on November 30, 1995 and reflects the
reinvestment of all distributions at market value. 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. Performance of the Fund and the
Lipper peer group at market value is based on market performance during the
period. Performance of the Fund and the Lipper peer group at net asset value is
based on the fluctuations in net asset value during the period. Returns plotted
were as of the last day of each month shown. Investments in the Fund are not
available at net asset value. The Lipper Closed-End Income and Preferred Stock
Funds Average represents the average return of closed-end income and preferred
stock mutual funds tracked by Lipper Inc. (Source: Lipper Inc.). You cannot
invest directly in an index. Past performance is not a guarantee of future
results.
5
SECTOR/COUNTRY ALLOCATION As of November 30, 2005
DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC.
Sector designations may be different than the sector designations presented in
other Fund materials.
PERCENTAGE
SECTOR/COUNTRY OF NET ASSETS
- -------------------------------------------------------------------------
COMMON STOCK 71.94%
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Consumer Discretionary 7.28%
Consumer Staples 4.62%
Energy 3.99%
Financials 15.35%
Health Care 8.76%
Health Care REITs 0.12%
Industrial REITs 1.02%
Industrials 5.24%
Information Technology 6.20%
Lodging/Resort REITs 1.62%
Mall REITs 0.43%
Materials 3.51%
Mortgage REITs 4.80%
Multifamily REITs 0.21%
Office/Industrial REITs 1.05%
Office REITs 2.13%
Shopping Center REITs 0.19%
Telecommunications 4.43%
Utilities 0.99%
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CONVERTIBLE PREFERRED STOCK 1.98%
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Banking, Finance & Insurance 0.98%
Basic Industries 0.28%
Energy 0.27%
Environmental Services 0.27%
Media 0.18%
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PREFERRED STOCK 2.99%
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Leisure, Lodging & Entertainment 0.57%
Real Estate 2.42%
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WARRANT 0.00%
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AGENCY OBLIGATIONS 0.48%
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COMMERCIAL MORTGAGE-BACKED SECURITIES 0.12%
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PERCENTAGE
SECTOR/COUNTRY OF NET ASSETS
- -------------------------------------------------------------------------
CONVERTIBLE BONDS 3.83%
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Capital Goods - Manufacturing 0.45%
Consumer Cyclical 1.29%
Consumer Non-Cyclical 0.65%
Energy 0.27%
Technology 0.55%
Telecommunications 0.15%
Transportation 0.06%
Utilities 0.41%
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CORPORATE BONDS 20.32%
- -------------------------------------------------------------------------
Banking 0.13%
Basic Industries 2.86%
Brokerage 0.50%
Capital Goods 1.10%
Consumer Cyclical 1.15%
Consumer Non-Cyclical 1.79%
Energy 1.17%
Finance & Investments 0.58%
Media 2.46%
Real Estate 0.42%
Services Cyclical 2.67%
Services Non-cyclical 1.43%
Technology & Electronics 0.42%
Telecommunications 2.36%
Utilities 1.28%
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FOREIGN AGENCIES 2.97%
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Austria 1.19%
Canada 0.50%
Germany 0.52%
United States 0.76%
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FOREIGN MUNICIPAL BONDS 0.15%
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REGIONAL AGENCY 0.56%
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REGIONAL AUTHORITY 2.73%
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SOVEREIGN AGENCY 0.18%
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6
SECTOR/COUNTRY ALLOCATION (CONTINUED)
DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC.
Sector designations may be different than sector designations presented in other
Fund materials.
PERCENTAGE
SECTOR/COUNTRY OF NET ASSETS
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SOVEREIGN DEBT 12.26%
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Austria 1.05%
France 0.67%
Germany 2.29%
Netherlands 0.90%
Norway 0.45%
Poland 1.22%
Portugal 0.40%
Spain 0.66%
Sweden 3.46%
United Kingdom 1.16%
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SUPRANATIONAL BANKS 2.36%
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U.S. TREASURY OBLIGATIONS 1.03%
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REPURCHASE AGREEMENTS 7.63%
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SECURITIES LENDING COLLATERAL 14.84%
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TOTAL MARKET VALUE OF SECURITIES 146.37%
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OBLIGATIONS TO RETURN SECURITIES LENDING COLLATERAL (14.84%)
- -------------------------------------------------------------------------
BORROWING UNDER LINE OF CREDIT (31.91%)
- -------------------------------------------------------------------------
RECEIVABLES AND OTHER ASSETS NET OF LIABILITIES 0.38%
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TOTAL NET ASSETS 100.00%
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7
STATEMENT DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC.
OF NET ASSETS November 30, 2005
Number of Market
Shares Value (U.S.$)
COMMON STOCK - 71.94%V
Consumer Discretionary - 7.28%
DSG International 71,000 $ 187,293
Esprit Holdings 49,500 348,371
*+Great Wolf Resorts 19,000 184,680
Honda 8,500 472,830
Kesa Electricals 89,300 380,612
*Lagardere Groupe 6,450 455,690
Limited Brands 28,900 643,025
Mattel 37,500 624,375
Michelin 7,440 404,096
Nissan 38,700 397,103
Sony 6,000 221,910
*Volkswagen 7,500 392,189
WPP Group 53,500 525,651
*+XM Satellite Radio Holdings Class A 400 11,704
----------
5,249,529
----------
Consumer Staples - 4.62%
Archer-Daniels-Midland 21,000 494,970
B&G Foods 2,500 36,375
ConAgra Foods 31,000 666,500
Kao 17,000 399,000
Kimberly-Clark 11,000 648,780
Metro 8,440 377,680
Safeway 30,300 704,475
----------
3,327,780
----------
Energy - 3.99%
Chevron 11,800 676,258
ConocoPhillips 11,300 683,763
Exxon Mobil 11,500 667,345
*+Petroleum Geo-Services ADR 1,191 33,705
*Total 3,270 815,977
----------
2,877,048
----------
Financials - 15.35%
Allstate 11,300 633,930
Aon 20,400 742,764
AXA 13,900 417,512
Chubb 8,000 774,721
Citic International Financial 695,000 261,623
Dexia 19,800 430,917
Hartford Financial Services 8,800 768,856
HBOS 23,800 358,214
Huntington Bancshares 28,400 680,464
ING Groep 17,300 558,975
Kookmin Bank ADR 7,500 494,925
Mitsubishi Tokyo Financial 36 452,221
Morgan Stanley 13,300 745,199
Nordea Bank AB 49,600 483,731
Royal & Sun Alliance Insurance 235,700 462,436
Royal Bank of Scotland Group 17,200 489,556
Standard Chartered 22,000 469,805
Wachovia 13,800 736,920
Washington Mutual 16,800 691,992
Westpac Banking 24,800 407,596
----------
11,062,357
----------
Health Care - 8.76%
Abbott Laboratories 15,000 565,650
Baxter International 18,000 700,020
Bristol-Myers Squibb 27,400 591,566
Merck 23,000 676,200
Number of Market
Shares Value (U.S.$)
COMMON STOCK (continued)
Health Care (continued)
Novartis 8,500 $ 444,344
Novo Nordisk 7,900 424,317
Pfizer 26,500 561,800
Sanofi-Aventis 5,800 466,541
Shire Pharmaceuticals Group 38,700 472,273
Stada Arzneimittel 10,500 336,160
Terumo 15,600 430,972
Wyeth 15,600 648,336
----------
6,318,179
----------
Health Care REITs - 0.12%
Medical Properties Trust 9,400 85,916
----------
85,916
----------
Industrial REITs - 1.02%
AMB Property 15,700 734,132
----------
734,132
----------
Industrials - 5.24%
Air France - KLM 15,900 295,251
Asahi Glass 29,000 332,224
Boeing 10,600 722,814
+British Airways 78,400 422,382
Compagnie de Saint-Gobain 7,440 429,153
*+Foster Wheeler 2,269 79,040
Union Pacific 9,900 757,746
Waste Management 24,700 738,777
----------
3,777,387
----------
Information Technology - 6.20%
Canon 7,400 415,129
+CGI Group 99,800 725,787
Fujitsu 67,000 488,275
Hewlett-Packard 29,200 866,364
International Business Machines 8,400 746,760
Nokia Oyj 27,800 473,916
+Xerox 52,900 751,180
----------
4,467,411
----------
Lodging/Resort REITs - 1.62%
*+Jameson Inns 400,000 836,000
*Strategic Hotel Capital 18,100 334,307
----------
1,170,307
----------
Mall REITs - 0.43%
Simon Property Group 4,000 309,240
----------
309,240
----------
Materials - 3.51%
Alcan Aluminium 11,900 456,691
Cemex 83,000 466,861
duPont (E.I.) deNemours 17,700 756,676
Lafarge SA 4,860 415,392
Rio Tinto 10,700 433,211
----------
2,528,831
----------
Mortgage REITs - 4.80%
*American Home Mortgage Investment 24,000 712,560
*Friedman Billings Ramsey Group Class A 22,240 236,634
JER Investors Trust 28,500 458,850
KKR Financial 1,500 35,625
sKKR Financial 24,600 584,250
*MortgageIT Holdings 52,100 688,762
sPeoples Choice 47,300 354,750
8
STATEMENT DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC.
OF NET ASSETS (CONTINUED)
Number of Market
Shares Value (U.S.$)
COMMON STOCK (continued)
Mortgage REITs (continued)
*Saxon Capital 32,400 $ 388,800
----------
3,460,231
----------
Multifamily REITs - 0.21%
Equity Lifestyle Properties 3,200 148,352
----------
148,352
----------
Office/Industrial REITs - 1.05%
*Duke Realty 22,300 758,200
----------
758,200
----------
Office REITs - 2.13%
Prentiss Properties Trust 18,208 746,528
*Reckson Associates Realty 21,400 786,022
----------
1,532,550
----------
Shopping Center REITs - 0.19%
*Ramco-Gershenson Properties 5,000 137,150
----------
137,150
----------
Telecommunications - 4.43%
AT&T 28,700 714,917
Deutsche Telekom 19,800 328,885
*Telefonos de Mexico ADR 20,800 466,544
Telus 13,900 532,254
Verizon Communications 22,200 709,956
Vodafone Group 203,990 439,857
----------
3,192,413
----------
Utilities - 0.99%
Progress Energy 16,000 716,480
----------
716,480
----------
TOTAL COMMON STOCK (cost $46,844,983) 51,853,493
----------
CONVERTIBLE PREFERRED STOCK - 1.98%v
Banking, Finance & Insurance - 0.98%
*Chubb 7.00%, exercise price $71.40,
expiration date 8/16/06 4,000 139,320
oCitigroup Funding 5.21%, exercise price
$29.50, expiration date 9/27/08 7,000 232,736
E TRADE Financial 6.125%, exercise price
$21.82, expiration date 11/18/08 3,500 93,555
*Lehman Brothers Holdings 6.25%, exercise
price $54.24, expiration date 10/15/07 9,250 242,813
----------
708,424
----------
Basic Industry - 0.28%
*Huntsman 5.00%, exercise price
$28.29, expiration date 2/16/08 4,600 198,950
----------
198,950
----------
Energy - 0.27%
*Chesapeake 4.50%, exercise price
$44.17, expiration date 12/31/49 2,200 197,450
----------
197,450
----------
Environmental Services - 0.27%
*Allied Waste Industries 6.25%, exercise
price $10.13, expiration date 4/1/06 4,000 192,080
----------
192,080
----------
Number of Market
Shares Value (U.S.$)
CONVERTIBLE PREFERRED STOCK (continued)
Media - 0.18%
*#Interpublic Group 144A 5.25%, exercise
price $13.66, expiration date 12/31/49 140 $ 128,205
----------
128,205
----------
TOTAL CONVERTIBLE PREFERRED STOCK
(cost $1,411,997) 1,425,109
----------
PREFERRED STOCK - 2.99%v
Leisure, Lodging & Entertainment - 0.57%
Red Lion Hotels 9.50% 15,700 413,303
----------
413,303
----------
Real Estate - 2.42%
Equity Inns Series B 8.75% 10,000 262,000
LaSalle Hotel Properties 10.25% 23,500 615,699
Ramco-Gershenson Properties 9.50% 11,500 307,108
SL Green Realty 7.625% 22,000 556,875
----------
1,741,682
----------
TOTAL PREFERRED STOCK (cost $2,067,500) 2,154,985
----------
WARRANT - 0.00%
+#Solutia 144A, exercise price $7.59,
expiration date 7/15/09 130 0
----------
TOTAL WARRANT (cost $11,059) 0
----------
Principal
Amount(degree)
AGENCY OBLIGATIONS - 0.48%v
Fannie Mae 6.375% 8/15/07 AUD 468,000 349,390
----------
TOTAL AGENCY OBLIGATIONS (cost $357,678) 349,390
----------
COMMERCIAL MORTGAGE-BACKED SECURITIES - 0.12%v
#First Union National Bank Commercial
Mortgage Series 2001-C2 L 144A
6.46% 1/12/43 USD 85,000 84,364
----------
TOTAL COMMERCIAL MORTGAGE-BACKED
SECURITIES (cost $86,272) 84,364
----------
CONVERTIBLE BONDS - 3.83%v
Capital Goods - Manufacturing - 0.45%
EDO 4.00% 11/15/25, exercise price
$34.19, expiration date 11/15/25 90,000 91,013
#L-3 Communications 144A
3.00% 8/1/35, exercise price
$102.31, expiration date 8/1/35 110,000 107,525
#Tyco International Group 144A
2.75% 1/15/18, exercise price
$22.78, expiration date 1/15/18 100,000 125,625
----------
324,163
----------
9
STATEMENT DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC.
OF NET ASSETS (CONTINUED)
Principal Market
Amount(degree) Value (U.S.$)
CONVERTIBLE BONDS (continued)
Consumer Cyclical - 1.29%
@DICK'S Sporting Goods 1.606% 2/18/24,
exercise price $58.13,
expiration date 2/18/24 USD 140,000 $ 100,625
MeriStar Hospitality 9.50% 4/1/10,
exercise price $10.18,
expiration date 4/1/10 300,000 366,374
#Playboy Enterprises 144A
3.00% 3/15/25, exercise price
$17.02, expiration date 3/15/25 160,000 163,800
#Regal Entertainment Group 144A
3.75% 5/15/08, exercise price
$15.30, expiration date 5/15/08 130,000 173,713
#Saks 144A 2.00% 3/15/24, exercise
price $18.69, expiration date 3/15/24 125,000 123,906
----------
928,418
----------
Consumer Non-Cyclical - 0.65%
Encysive Pharmaceuticals
2.50% 3/15/12, exercise price
$13.95, expiration date 3/15/12 245,000 244,081
#Nektar Therapeutics 144A
3.25% 9/28/12, exercise price
$21.52, expiration date 9/28/12 225,000 228,375
----------
472,456
----------
Energy - 0.27%
Pride International 3.25% 5/1/33, exercise
price $25.70, expiration date 5/1/33 150,000 194,438
----------
194,438
----------
Technology - 0.55%
#Mercury Interactive 144A 4.75% 7/1/07,
exercise price $111.25,
expiration date 7/1/07 275,000 264,344
#Sybase 144A 1.75% 2/22/25, exercise
price $25.22, expiration date 2/22/25 125,000 130,469
----------
394,813
----------
Telecommunications - 0.15%
#Charter Communications 144A
5.875% 11/16/09, exercise price
$2.42, expiration date 11/16/09 40,000 29,750
Qwest Communications International
3.50% 11/15/25, exercise price $5.90,
expiration date 11/15/25 70,000 76,650
----------
106,400
----------
Transportation - 0.06%
#ExpressJet Holdings 144A 4.25% 8/1/23,
exercise price $18.20,
expiration date 8/1/23 50,000 42,250
----------
42,250
----------
Utilities - 0.41%
#CenterPoint Energy 144A
3.75% 5/15/23, exercise price $11.58,
expiration price 5/15/23 200,000 241,500
++Mirant Americas 2.50% 6/15/21, exercise
price $67.95, expiration date 6/15/21 50,000 52,750
----------
294,250
----------
TOTAL CONVERTIBLE BONDS (cost $2,585,370) 2,757,188
----------
Principal Market
Amount(degree) Value (U.S.$)
CORPORATE BONDS - 20.32%v
Banking - 0.13%
Western Financial Bank
9.625% 5/15/12 USD 85,000 $ 95,838
----------
95,838
----------
Basic Industries - 2.86%
Abitibi-Consolidated 6.95% 4/1/08 30,000 30,450
AK Steel
7.75% 6/15/12 30,000 27,225
*7.875% 2/15/09 55,000 52,800
BCP Caylux 9.625% 6/15/14 1,000 1,114
Bowater 9.50% 10/15/12 150,000 155,249
Donohue Forest Products
7.625% 5/15/07 65,000 67,113
Fort James 7.75% 11/15/23 195,000 245,699
Georgia-Pacific
*8.875% 5/15/31 45,000 45,225
9.50% 12/1/11 50,000 53,563
Gold Kist 10.25% 3/15/14 60,000 68,100
*Huntsman International 10.125% 7/1/09 25,000 25,875
*#Huntsman International 144A
7.375% 1/1/15 85,000 82,556
Lyondell Chemical 10.50% 6/1/13 10,000 11,413
*#Nell AF Sarl 144A 8.375% 8/15/15 75,000 73,875
*Newpage 10.00% 5/1/12 75,000 74,250
Norske Skog 8.625% 6/15/11 175,000 171,937
#Novelis 144A 7.50% 2/15/15 30,000 28,200
#Port Townsend Paper 144A
12.00% 4/15/11 100,000 68,000
Potlatch 13.00% 12/1/09 95,000 114,018
*Rhodia
8.875% 6/1/11 105,000 107,100
10.25% 6/1/10 25,000 27,563
Smurfit Capital Funding 7.50% 11/20/25 150,000 132,000
++Solutia 6.72% 10/15/37 155,000 111,600
Stone Container 9.75% 2/1/11 115,000 117,013
Tembec Industries 8.625% 6/30/09 170,000 113,050
Witco 6.875% 2/1/26 60,000 56,700
----------
2,061,688
----------
Brokerage - 0.50%
E Trade Financial 8.00% 6/15/11 145,000 148,987
#E Trade Financial 144A 8.00% 6/15/11 15,000 15,413
LaBranche & Co.
9.50% 5/15/09 90,000 94,950
11.00% 5/15/12 90,000 99,675
----------
359,025
----------
Capital Goods - 1.10%
++Anchor Glass 11.00% 2/15/13 50,000 36,500
*Armor Holdings 8.25% 8/15/13 125,000 135,625
*Graham Packaging 9.875% 10/15/14 110,000 106,975
Interface 10.375% 2/1/10 100,000 108,000
Interline Brands 11.50% 5/15/11 120,000 133,800
Intertape Polymer 8.50% 8/1/14 115,000 108,168
@Mueller Holdings 14.75% 4/15/14 60,000 45,450
*#Panolam Industrial 144A 10.75% 10/1/13 45,000 43,425
*Trimas 9.875% 6/15/12 95,000 78,375
----------
796,318
----------
Consumer Cyclical - 1.15%
Accuride 8.50% 2/1/15 80,000 78,800
=++Avado Brands 9.75% 6/1/06 45,000 4,275
10
STATEMENT DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC.
OF NET ASSETS (CONTINUED)
Principal Market
Amount(degree) Value (U.S.$)
CORPORATE BONDS (continued)
Consumer Cyclical (continued)
Brickman Group 11.75% 12/15/09 USD 125,000 $ 138,750
General Motors Acceptance Corporation
6.875% 9/15/11 35,000 31,660
*8.00% 11/1/31 35,000 34,414
*Landry's Restaurant 7.50% 12/15/14 60,000 56,700
*#Metaldyne 144A 11.00% 11/1/13 120,000 108,000
*#Neiman Marcus 144A 10.375% 10/15/15 80,000 81,300
*O'Charleys 9.00% 11/1/13 50,000 51,750
#Uno Restaurant 144A 10.00% 2/15/11 80,000 70,400
++Venture Holdings 12.00% 6/1/09 95,000 119
Visteon
*7.00% 3/10/14 20,000 16,175
8.25% 8/1/10 55,000 48,125
Warnaco 8.875% 6/15/13 100,000 108,750
----------
829,218
----------
Consumer Non-Cyclical - 1.79%
Biovail 7.875% 4/1/10 140,000 145,950
#Commonwealth Brands 144A
9.75% 4/15/08 50,000 55,563
10.625% 9/1/08 95,000 108,894
Constellation Brands 8.125% 1/15/12 165,000 172,424
Cott Beverages 8.00% 12/15/11 110,000 113,300
#Doane Pet Care 144A 10.625% 11/15/15 45,000 45,956
#Le-Natures 144A 10.00% 6/15/13 105,000 108,675
*National Beef Packing 10.50% 8/1/11 105,000 108,938
Pilgrim's Pride 9.625% 9/15/11 90,000 95,625
Playtex Products 9.375% 6/1/11 100,000 105,875
Spectrum Brands 8.50% 10/1/13 45,000 41,006
#Warner Chilcott 144A 8.75% 2/1/15 180,000 164,700
#Williams Scotsman 144A 8.50% 10/1/15 25,000 25,875
----------
1,292,781
----------
Energy - 1.17%
*Bluewater Finance 10.25% 2/15/12 55,000 58,988
*#Compton Petroleum 144A 7.625% 12/1/13 40,000 40,800
El Paso Natural Gas 7.625% 8/1/10 45,000 47,050
El Paso Production Holding 7.75% 6/1/13 100,000 103,000
*#Hilcorp Energy I 144A
7.75% 11/1/15 30,000 30,525
10.50% 9/1/10 22,000 24,475
Inergy 6.875% 12/15/14 50,000 46,875
Petroleum Geo-Services 10.00% 11/5/10 109,981 124,691
Schlumberger 2.125% 6/1/23 140,000 180,424
oSecunda International 12.15% 9/1/12 55,000 58,025
Tennessee Gas Pipeline 8.375% 6/15/32 70,000 78,653
Whiting Petroleum 7.25% 5/1/13 50,000 50,875
----------
844,381
----------
Finance & Investments - 0.58%
FINOVA Group 7.50% 11/15/09 162,450 59,294
SLM 6.50% 6/15/10 NZD 520,000 357,026
----------
416,320
----------
Media - 2.46%
JAdelphia Communications
8.125% 7/15/06 USD 110,000 66,000
#CCH I 144A 11.00% 10/1/15 209,000 180,262
Cenveo 9.625% 3/15/12 65,000 70,363
Charter Communications Holdings
*11.125% 1/15/11 95,000 57,950
@13.50% 1/15/11 150,000 104,250
Principal Market
Amount(degree) Value (U.S.$)
CORPORATE BONDS (continued)
Media (continued)
*#Charter Communications Operating
144A 8.375% 4/30/14 USD 100,000 $ 100,000
*CSC Holdings 10.50% 5/15/16 105,000 112,613
Dex Media East 12.125% 11/15/12 75,000 87,750
Insight Midwest 10.50% 11/1/10 205,000 216,530
*Lodgenet Entertainment 9.50% 6/15/13 140,000 153,299
*Mediacom Capital 9.50% 1/15/13 155,000 153,063
Rogers Cablesystems 11.00% 12/1/15 55,000 58,163
*Sheridan Acquisition Group
10.25% 8/15/11 40,000 41,800
#Sirius Satellite 144A 9.625% 8/1/13 115,000 112,988
*Vertis 10.875% 6/15/09 50,000 48,875
Warner Music Group 7.375% 4/15/14 120,000 117,000
*XM Satellite Radio 12.00% 6/15/10 81,000 91,530
----------
1,772,436
----------
Real Estate - 0.42%
American Real Estate Partners
8.125% 6/1/12 65,000 66,625
#American Real Estate Partners 144A
7.125% 2/15/13 30,000 29,625
BF Saul REIT 7.50% 3/1/14 110,000 113,025
Tanger Properties 9.125% 2/15/08 90,000 96,739
----------
306,014
----------
Services Cyclical - 2.67%
Adesa 7.625% 6/15/12 105,000 105,000
*#CCM Merger 144A 8.00% 8/1/13 75,000 72,938
Corrections Corporation of America
7.50% 5/1/11 100,000 104,500
*Foster Wheeler 10.359% 9/15/11 19,000 21,470
#FTI Consulting 144A 7.625% 6/15/13 90,000 93,150
*Gaylord Entertainment 6.75% 11/15/14 65,000 63,050
@H-Lines Finance Holdings 11.00% 4/1/13 88,000 73,040
Horizon Lines 9.00% 11/1/12 39,000 41,291
Kansas City Southern Railway
9.50% 10/1/08 175,000 189,875
#Knowledge Learning 144A 7.75% 2/1/15 65,000 61,750
Mandalay Resort Group 10.25% 8/1/07 200,000 214,499
OMI 7.625% 12/1/13 130,000 131,950
Penn National Gaming 8.875% 3/15/10 205,000 215,762
Royal Caribbean Cruises 7.25% 3/15/18 85,000 90,738
Seabulk International 9.50% 8/15/13 50,000 56,375
Stena 9.625% 12/1/12 175,000 191,625
@Town Sports International 11.00% 2/1/14 65,000 43,550
United Air Lines 7.73% 7/1/10 24,981 24,565
Wheeling Island Gaming
10.125% 12/15/09 120,000 126,300
----------
1,921,428
----------
Services Non-cyclical - 1.43%
Aleris International 9.00% 11/15/14 110,000 115,225
Allied Waste North America 9.25% 9/1/12 130,000 142,025
Casella Waste Systems 9.75% 2/1/13 150,000 159,749
Geo Subordinate 11.00% 5/15/12 95,000 91,913
*Healthsouth 10.75% 10/1/08 155,000 149,575
NDCHealth 10.50% 12/1/12 130,000 148,525
US Oncology 10.75% 8/15/14 131,000 145,738
@Vanguard Health 11.25% 10/1/15 110,000 79,200
----------
1,031,950
----------
11
STATEMENT DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC.
OF NET ASSETS (CONTINUED)
Principal Market
Amount(degree) Value (U.S.$)
CORPORATE BONDS (continued)
Technology & Electronics - 0.42%
#Avago Technologies Finance
144A 10.125% 12/1/13 USD 10,000 $ 10,250
*#Ikon Office Solutions 144A
7.75% 9/15/15 50,000 48,000
*Magnachip Semiconductor
8.00% 12/15/14 95,000 88,350
Sanmina-SCI 10.375% 1/15/10 65,000 71,338
*#Sunguard Data 144A 10.25% 8/15/15 80,000 81,200
----------
299,138
----------
Telecommunications - 2.36%
Alaska Communications Systems
9.875% 8/15/11 75,000 81,656
American Cellular 10.00% 8/1/11 60,000 65,250
American Tower 7.125% 10/15/12 75,000 77,813
Centennial Cellular Operating
10.125% 6/15/13 65,000 72,800
Cincinnati Bell 8.375% 1/15/14 120,000 118,200
@Inmarsat Finance 10.375% 11/15/12 175,000 143,499
iPCS 11.50% 5/1/12 115,000 133,113
Iwo Escrow Company
o7.90% 1/15/12 15,000 15,600
@10.75% 1/15/15 15,000 10,838
Qwest 7.875% 9/1/11 35,000 37,713
o#Qwest 144A 7.12% 6/15/13 65,000 70,363
*Rural Cellular
9.625% 5/15/08 50,000 51,063
9.875% 2/1/10 75,000 78,844
o#Rural Cellular 144A 10.041% 11/1/12 50,000 49,750
*#Telcordia Technologies 144A
10.00% 3/15/13 160,000 139,999
*Time Warner Telecommunications
9.75% 7/15/08 70,000 71,663
*Triton Communications 9.375% 2/1/11 315,000 237,824
*oUS LEC 12.716% 10/1/09 45,000 48,600
Valor Telecom 7.75% 2/15/15 95,000 93,575
#Wind Acquisition 144A 10.75% 12/1/15 100,000 104,500
----------
1,702,663
----------
Utilities - 1.28%
Avista 9.75% 6/1/08 100,000 109,878
Calpine
*7.625% 4/15/06 70,000 23,800
10.50% 5/15/06 55,000 18,700
o#Calpine 144A 9.90% 7/15/07 68,425 53,372
#Dynegy Holdings 144A 10.125% 7/15/13 155,000 174,374
Elwood Energy 8.159% 7/5/26 108,379 119,894
Midwest Generation
8.30% 7/2/09 100,000 104,000
8.75% 5/1/34 90,000 99,675
Orion Power Holdings 12.00% 5/1/10 70,000 80,150
PSE&G Energy Holdings 7.75% 4/16/07 50,000 51,250
Reliant Energy 9.50% 7/15/13 35,000 35,875
#Texas Genco 144A 6.875% 12/15/14 45,000 48,375
++=#USGen New England 144A
7.459% 1/2/15 50,000 360
----------
919,703
----------
TOTAL CORPORATE BONDS (cost $14,910,293) 14,648,901
----------
Principal Market
Amount(degree) Value (U.S.$)
FOREIGN AGENCIES - 2.97%
Austria - 1.19%
Oesterreichesche Kontrollbank
1.80% 3/22/10 JPY 98,000,000 $ 859,671
----------
859,671
----------
Canada - 0.50%
Canada Housing Trust No. 1
3.75% 3/15/10 CAD 420,000 357,132
----------
357,132
----------
Germany - 0.52%
Rentenbank 1.375% 4/25/13 JPY 44,000,000 372,678
----------
372,678
----------
United States - 0.76%
KFW International Finance
1.75% 3/23/10 JPY 63,000,000 551,307
----------
551,307
----------
TOTAL FOREIGN AGENCIES (cost $2,286,210) 2,140,788
----------
FOREIGN MUNICIPAL BONDS - 0.15%
Canada - 0.15%
Vancouver City 3.85% 10/6/12 CAD 130,000 109,336
----------
TOTAL FOREIGN MUNICIPAL BONDS
(cost $110,996) 109,336
----------
REGIONAL AGENCY - 0.56%
Australia - 0.56%
Queensland Treasury
6.00% 8/14/13 AUD 230,000 175,176
6.00% 10/14/15 AUD 300,000 229,631
----------
TOTAL REGIONAL AGENCY (cost $416,118) 404,807
----------
REGIONAL AUTHORITY - 2.73%
Canada - 2.73%
Ontario Province
1.875% 1/25/10 JPY 97,000,000 852,871
4.50% 3/8/15 CAD 398,000 347,542
5.00% 3/8/14 CAD 77,000 69,753
Quebec Province
5.00% 12/1/15 CAD 582,000 521,497
6.75% 11/9/15 NZD 250,000 174,194
----------
TOTAL REGIONAL AUTHORITY
(cost $2,021,582) 1,965,857
----------
SOVEREIGN AGENCY - 0.18%
Japan - 0.18%
Development Bank of Japan
1.70% 9/20/22 JPY 16,000,000 131,900
----------
TOTAL SOVEREIGN AGENCY (cost $136,037) 131,900
----------
SOVEREIGN DEBT - 12.26%
Austria - 1.05%
Republic of Austria
5.25% 1/4/11 EUR 237,000 307,274
9.00% 9/15/06 ISK 28,500,000 452,734
----------
760,008
----------
12
STATEMENT DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC.
OF NET ASSETS (CONTINUED)
Principal Market
Amount(degree) Value (U.S.$)
SOVEREIGN DEBT (continued)
France - 0.67%
France Government 3.50% 4/25/15 EUR 405,000 $ 479,701
----------
479,701
----------
Germany - 2.29%
Deutschland Republic
4.50% 1/4/13 EUR 440,000 558,531
4.75% 7/4/08 EUR 536,000 661,553
6.25% 1/4/24 EUR 276,000 433,658
----------
1,653,742
----------
Netherlands - 0.90%
Netherlands Government
5.75% 2/15/07 EUR 530,000 647,364
----------
647,364
----------
Norway - 0.45%
Kingdom of Norway
5.00% 5/15/15 NOK 2,000,000 322,283
----------
322,283
----------
Poland - 1.22%
Poland Government
^4.292% 4/12/07 PLZ 626,000 177,139
5.75% 9/23/22 PLZ 556,000 173,685
6.00% 5/24/09 PLZ 1,132,000 350,242
6.25% 10/24/15 PLZ 553,000 178,582
----------
879,648
----------
Portugal - 0.40%
Portugal Government 3.20% 4/15/11 EUR 245,000 288,970
----------
288,970
----------
Spain - 0.66%
Spain Government 5.50% 7/30/17 EUR 338,000 472,198
----------
472,198
----------
Sweden - 3.46%
Sweden Government
4.00% 12/1/09 SEK 5,365,000 690,619
5.00% 12/1/20 SEK 6,170,000 899,915
8.00% 8/15/07 SEK 6,700,000 905,630
----------
2,496,164
----------
United Kingdom - 1.16%
U.K. Treasury
4.75% 6/7/10 GBP 182,000 321,086
4.75% 9/7/15 GBP 122,500 220,615
8.00% 6/7/21 GBP 120,500 297,458
----------
839,159
----------
TOTAL SOVEREIGN DEBT (cost $9,182,209) 8,839,237
----------
SUPRANATIONAL BANKS - 2.36%
Asia Development Bank
0.50% 10/9/12 AUD 255,000 133,439
European Investment Bank
1.40% 6/20/17 JPY 10,600,000 86,676
4.00% 10/15/37 EUR 214,000 256,193
4.375% 7/8/15 GBP 153,000 262,588
5.375% 6/7/21 GBP 138,000 262,567
*Inter-American Development Bank
1.90% 7/8/09 JPY 80,000,000 702,744
----------
TOTAL SUPRANATIONAL BANKS
(cost $1,788,281) 1,704,207
----------
Principal Market
Amount(degree) Value (U.S.$)
U.S. TREASURY OBLIGATIONS - 1.03%v
*U.S. Treasury Notes 4.125% 8/15/10 USD 750,000 $ 740,391
----------
TOTAL U.S. TREASURY OBLIGATIONS
(cost $740,889) 740,391
----------
REPURCHASE AGREEMENTS - 7.63%
With BNP Paribas 3.92% 12/1/05
(dated 11/30/05, to be repurchased
at $3,696,402, collateralized by
$3,789,000 U.S. Treasury Bills due
1/19/06, market value $3,770,208) 3,696,000 3,696,000
With UBS Warburg 3.93% 12/1/05
(dated 11/30/05, to be repurchased
at $1,805,197, collateralized by
$1,843,000 U.S. Treasury Bills due
12/8/05, market value $1,842,094) 1,805,000 1,805,000
----------
TOTAL REPURCHASE AGREEMENTS
(cost $5,501,000) 5,501,000
----------
TOTAL MARKET VALUE OF SECURITIES BEFORE
SECURITIES LENDING COLLATERAL - 131.53%
(cost $90,458,474) 94,810,953
----------
SECURITIES LENDING COLLATERAL** - 14.84%
Short-Term Investments
oAbbey National 4.14% 1/13/06 262,445 262,481
oAustralia New Zealand 4.15% 1/2/07 354,656 354,656
oBank of New York 4.07% 4/4/06 283,725 283,725
oBank of the West 4.07% 3/2/06 354,656 354,656
oBayerische Landesbank 4.21% 8/25/06 354,656 354,656
oBear Stearns
4.14% 1/17/06 70,931 70,943
4.15% 5/31/06 425,587 425,587
oBeta Finance 4.08% 4/18/06 354,656 354,638
Calyon London 3.77% 12/30/05 248,259 249,144
oCDC Financial Products 4.16% 1/3/06 461,053 461,053
oCitigroup Global Markets
4.10% 12/1/05 904,916 904,916
4.13% 12/7/05 461,053 461,053
oCommonwealth Bank Australia 4.16% 1/2/07 354,656 354,656
oCredit Suisse First Boston New York
4.02% 12/29/05 74,478 74,479
4.12% 4/18/06 383,029 383,029
Deutsche Bank London 3.76% 12/27/05 106,397 106,410
oGoldman Sachs 4.20% 11/30/06 461,053 461,053
oLehman Holdings 4.14% 12/23/05 354,656 354,762
oManufacturers & Traders 4.18% 9/26/06 354,656 354,584
oMarshall & Ilsley Bank 3.97% 12/29/05 354,656 354,661
oMerrill Lynch Mortgage Capital
4.16% 1/12/06 461,053 461,053
oMorgan Stanley 4.24% 11/30/06 439,773 439,773
oNational City Bank 4.06% 1/23/06 404,308 404,315
oNordea Bank Norge ASA 4.10% 1/2/07 354,656 354,656
oProcter & Gamble 3.77% 1/2/07 354,656 354,656
oRoyal Bank of Scotland 4.13% 1/2/07 354,656 354,656
oSigma Finance 4.08% 3/16/06 106,397 106,404
oSociete Generale New York 4.06% 1/2/07 177,328 177,328
oToyota Motor Credit 4.05% 6/23/06 354,656 354,674
oWells Fargo 4.11% 1/2/07 354,656 354,656
Wilmington Trust Company 4.05% 1/5/06 354,656 354,656
----------
TOTAL SECURITIES LENDING COLLATERAL
(cost $10,697,969) 10,697,969
----------
13
STATEMENT DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC.
OF NET ASSETS (CONTINUED)
TOTAL MARKET VALUE OF SECURITIES - 146.37%
(cost $101,156,443) $105,508,922***
OBLIGATION TO RETURN SECURITIES
LENDING COLLATERAL - (14.84%)** (10,697,969)
BORROWING UNDER LINE OF CREDIT - (31.91%) (23,000,000)
RECEIVABLES AND OTHER ASSETS NET OF LIABILITIES - 0.38% 270,623
-------------
NET ASSETS APPLICABLE TO 5,463,746
SHARES OUTSTANDING; EQUIVALENT TO
$13.19 PER SHARE - 100.00% $ 72,081,576
-------------
COMPONENTS OF NET ASSETS AT NOVEMBER 30, 2005:
Common stock, $0.01 par value, 500,000,000
shares authorized to the Fund $ 58,693,534
Undistributed net investment income 5,103
Accumulated net realized gain on investments 9,072,086
Net unrealized appreciation of investments
and foreign currencies 4,310,853
--------------
Total net assets $ 72,081,576
--------------
(degree)Principal amount shown is stated in the currency in which each security
is denominated.
AUD - Australian Dollar
CAD - Canadian Dollar
EUR - European Monetary Unit
GBP - British Pound Sterling
ISK - Iceland Krona
JPY - Japanese Yen
NOK - Norwegian Kroner
NZD - New Zealand Dollar
PLZ - Polish Zloty
SEK - Swedish Krona
USD - U.S. Dollar
#Security exempt from registration under Rule 144A of the Securities Act of
1933. At November 30, 2005, the aggregate amount of the 144A securities
equals $4,451,714 or 6.18% of the Fund's net assets. See Note 10 in "Notes
to Financial Statements."
sRestricted Security. Investment in a security not registered under
the Securities Act of 1933. This security has certain restrictions on resale
which may limit its liquidity. At November 30, 2005, the aggregate amount
of the restricted securities equals $939,000 or 1.30% of the Fund's net
assets. See Note 10 in "Notes to Financial Statements."
*Fully or partially on loan.
**See Note 8 in "Notes to Financial Statements."
***Includes $10,381,464 of securities loaned.
oVariable rate securities. The interest rate shown is the rate as of November
30, 2005. +Non-income producing security for the year ended November 30,
2005.
++Non-income producing security. Security is currently in default.
@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.
JSecurity is currently in default. The issue has missed the maturity date.
Bankruptcy proceedings are in the process to determine distribution of
assets. The date listed is the estimate of when proceedings will be
finalized.
vSecurities have been classified by type of business. Classification by
country of origin has been presented in Note 9 in "Notes to Financial
Statements."
^Zero coupon security. The interest rate shown is the yield at the time of
purchase.
=Security is being fair valued in accordance with the Fund's fair valuation
policy. See Note 1 in "Notes to Financial Statements." At November 30, 2005,
two securities were fair valued which represented 0.01% of the Fund's net
assets.
SUMMARY OF ABBREVIATIONS:
ADR - American Depositary Receipt
REIT - Real Estate Investment Trust
The following foreign currency exchange contracts and forward foreign
cross-currency exchange contracts were outstanding at November 30, 2005:
FOREIGN CURRENCY EXCHANGE CONTRACTS AND FORWARD FOREIGN
CROSS-CURRENCY EXCHANGE CONTRACTS(1)
In Unrealized
Contracts to Exchange Settlement Appreciation
Receive (Deliver) For Date (Depreciation)
- ----------------- ------------ ---------- --------------
(486,792)
British Pounds EUR 709,000 12/19/05 $ (4,967)
(185,000) European
Monetary Units US $216,269 12/15/05 (2,053)
276,306 European
Monetary Units US $(325,781) 12/19/05 370
332,347 European
Monetary Units US $(393,689) 12/16/05 (1,456)
1,169,000 European
Monetary Units SEK (11,246,598) 12/15/05 (14,730)
(10,795,000)
Japanese Yen US $90,746 12/15/05 491
40,000
Japanese Yen US $(334) 12/01/05 --
(1,360,000)
Polish Zloty US $401,710 12/16/05 (8,098)
(2,676,700)
Swedish Krona US $328,734 12/19/05 (3,220)
--------
$(33,663)
========
EUR - European Monetary Unit
SEK - Swedish Krona
(1) See Note 7 in "Notes to Financial Statements."
14
STATEMENT DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC.
OF OPERATIONS Year Ended November 30, 2005
INVESTMENT INCOME:
Dividends $2,451,536
Interest 1,816,410
Securities lending income 39,292
Foreign tax withheld (64,781) $ 4,242,457
---------- -----------
EXPENSES:
Management fees 717,406
Reports to shareholders 104,297
Legal and professional fees 91,325
Accounting and administration expenses 67,699
Transfer agent fees 51,188
Custodian fees 34,566
NYSE fees 24,999
Taxes (other than taxes on income) 14,889
Pricing fees 14,729
Insurance fees 6,402
Directors' fees 3,920
Registration fees 533
Other 9,285
----------
Total operating expenses (before interest expense) 1,141,238
Interest Expense 883,022
----------
Total expenses 2,024,260
----------
NET INVESTMENT INCOME 2,218,197
----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on:
Investments 15,100,674
Foreign currencies (268,420)
Options on foreign currencies 32,958
----------
Net realized gain 14,865,212
Net change in unrealized appreciation/depreciation
of investments and foreign currencies (13,767,017)
----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
AND FOREIGN CURRENCIES 1,098,195
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $3,316,392
==========
See accompanying notes
15
STATEMENTS DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC.
OF CHANGES IN NET ASSETS
Year Ended
11/30/05 11/30/04
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income $ 2,218,197 $ 2,492,195
Net realized gain on investments and foreign currencies 14,865,212 5,658,703
Net change in unrealized appreciation/depreciation of
investments and foreign currencies (13,767,017) 7,225,053
------------ -----------
Net increase in net assets resulting from operations 3,316,392 15,375,951
------------ -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM (SEE NOTE 4):
Net investment income (2,295,845) (4,880,207)
Net realized gains (3,241,579) (867,345)
------------ -----------
(5,537,424) (5,747,552)
------------ -----------
CAPITAL SHARE TRANSACTIONS:
Cost of shares repurchased (see Note 5) (7,018,700) --
------------ -----------
(7,018,700) --
------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS (9,239,732) 9,628,399
NET ASSETS:
Beginning of year 81,321,308 71,692,909
------------ -----------
End of year (including undistributed net investment
income of $5,103 and $0, respectively) $72,081,576 $81,321,308
============ ===========
See accompanying notes
16
STATEMENT DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC.
OF CASH FLOWS Year Ended November 30, 2005
NET CASH (INCLUDING FOREIGN CURRENCY) PROVIDED BY OPERATING ACTIVITIES:
Net increase in net assets resulting from operations $ 3,316,392
-----------
Adjustments to reconcile net increase in net assets from operations to cash
provided by operating activities:
Amortization of premium and discount on investments 47,026
Net proceeds from investment transactions 12,445,972
Net realized gain on investment transactions (15,100,674)
Net realized loss on foreign currencies and options 235,462
Net change in unrealized appreciation/depreciation of
investments and foreign currencies 13,767,017
Increase in receivable for investments sold (273,336)
Increase in interest and dividends receivable and other assets (70,734)
Increase in payable for investments purchased 474,160
Increase in interest expense payable 56,643
Decrease in accrued expenses and other liabilities (5,191)
-----------
Total adjustments 11,576,345
-----------
Net cash provided by operating activities 14,892,737
-----------
CASH FLOWS USED FOR FINANCING ACTIVITIES:
Decrease in principal on line of credit (2,000,000)
Cash dividends and distributions paid (5,537,424)
Tender offer (7,018,700)
-----------
Net cash used for financing activities (14,556,124)
-----------
Effect of exchange rates on cash (454,072)
-----------
Net decrease in cash (117,459)
Cash at beginning of year 178,201
-----------
Cash at end of year $ 60,742
===========
Cash paid for interest $ 826,379
===========
See accompanying notes
17
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
11/30/05 11/30/04 11/30/03 11/30/02(1) 11/30/01
NET ASSET VALUE, BEGINNING OF PERIOD $13.590 $ 11.980 $ 9.940 $ 11.170 $ 11.770
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(2) 0.384 0.416 0.554 0.499 0.620
Net realized and unrealized gain (loss)
on investments and foreign currencies 0.176 2.154 2.570 (0.260) 0.280
-------- -------- -------- -------- --------
Total from investment operations 0.560 2.570 3.124 0.239 0.900
-------- -------- -------- -------- --------
LESS DIVIDENDS AND DISTRIBUTIONS FROM:
Net investment income (0.398) (0.815) (0.918) (0.365) (0.195)
Net realized gain on investments (0.562) (0.145) - - (0.084)
Return of capital - - (0.166) (1.104) (1.221)
-------- -------- -------- -------- --------
Total dividends and distributions (0.960) (0.960) (1.084) (1.469) (1.500)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $13.190 $ 13.590 $ 11.980 $ 9.940 $ 11.170
======== ======== ======== ======== ========
MARKET VALUE, END OF PERIOD $13.400 $ 12.300 $ 11.900 $ 10.400 $ 12.400
======== ======== ======== ======== ========
TOTAL RETURN BASED ON:(3)
Market value 17.22% 12.01% 25.92% (5.49%) 34.52%
Net asset value 4.43% 22.92% 32.63% 0.28% 6.91%
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $ 72,082 $ 81,321 $ 71,693 $ 59,523 $ $66,870
Ratio of expenses to average net assets 2.59% 1.92% 2.04% 2.26% 3.31%
Ratio of expenses to adjusted average net assets
(before interest expense)(4) 1.13% 0.98% 1.08% 1.06% 1.10%
Ratio of interest expense to adjusted average net assets(4) 0.87% 0.46% 0.46% 0.64% 1.35%
Ratio of net investment income to average net assets 2.84% 3.31% 5.14% 4.69% 5.18%
Ratio of net investment income to adjusted average
net assets(4) 2.19% 2.48% 3.88% 3.53% 3.84%
Portfolio turnover 121% 78% 99% 69% 47%
LEVERAGE ANALYSIS:
Debt outstanding at end of period at par (000 omitted) $ 23,000 $ 25,000 $ 21,000 $ 21,000 $ 25,000
Average daily balance of debt outstanding (000 omitted) $ 24,195 $ 24,410 $ 21,000 $ 21,603 $ 25,000
Average daily balance of shares outstanding (000 omitted) 5,777 5,986 5,986 5,986 5,986
Average debt per share $ 4.19 $ 4.08 $ 3.51 $ 3.61 $ 4.18
Asset coverage per $1,000 of debt outstanding at
end of period $ 4,134 $ 4,253 $ 4,414 $ 3,834 $ 3,675
(1) As required, effective December 1, 2001, the Fund adopted the provision 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 for the periods prior to December 1, 2001 have not been restated to
reflect this change in accounting.
(2) The average shares outstanding method has been applied for per share
information.
(3) 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.
(4) Adjusted average net assets excludes debt outstanding.
See accompanying notes
18
NOTES DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC.
TO FINANCIAL STATEMENTS November 30, 2005
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
valued at the last quoted sales price before the Fund is valued. 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. Securities lending collateral is valued
at amortized cost, which approximates market value. Forward foreign currency
exchange contracts and forward foreign cross-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 values
of all assets and liabilities denominated in foreign currencies are translated
into U.S. dollars at the exchange rate of such currencies against the U.S.
dollar daily. Transaction gains or losses resulting from changes in exchange
rates during the reporting period or upon settlement of the foreign currency
transaction are reported in operations for the current period. The Fund isolates
that portion of realized gains and losses on investments in debt securities,
which are due to changes in foreign exchange rates from that which are due to
changes in market prices of debt securities. For foreign equity securities,
these changes are included in realized gains (losses) on investments. The Fund
reports certain foreign currency related transactions as components of realized
gains (losses) for financial reporting purposes, where such components are
treated as ordinary income (loss) for federal income tax purposes.
Repurchase Agreements - The Fund may invest in a pooled cash account along with
other members of the Delaware Investments(R) Family of Funds pursuant to an
exemptive order issued by the Securities and Exchange Commission. The aggregate
daily balance of the pooled cash account is invested in repurchase agreements
secured by obligations of the U.S. government. The respective collateral is held
by the Fund's custodian bank until the maturity of the respective repurchase
agreements. Each repurchase agreement is 102% collateralized. However, in the
event of default or bankruptcy by the counterparty to the agreement, realization
of the collateral may be subject to legal proceedings.
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(R) Family
of Funds are allocated amongst the funds on the basis of average net assets.
Management fees and some other expenses are paid monthly. Security transactions
are recorded on the date the securities are purchased or sold (trade date) for
financial reporting purposes. 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 on non-convertible
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 investments in 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. The Fund may direct certain security trades to brokers who have
agreed to rebate a portion of the related brokerage commission to the Fund in
cash. There were no commission rebates during the year ended November 30, 2005.
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.
Delaware Service Company, Inc. (DSC), an affiliate of DMC, provides accounting
and administration services. Effective May 19, 2005, the Fund pays DSC a monthly
fee computed at an annual rate of 0.04% of the Fund's adjusted average weekly
net assets for accounting and administration services. Prior to May 19, 2005,
the Fund paid DSC a monthly fee computed at the annual rate of 0.05% of the
Fund's adjusted average weekly net assets, subject to annual minimum of
$100,000.
19
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, 2005, the Fund had liabilities payable to
affiliates as follows:
Investment management fee payable to DMC $55,298
Accounting and administration fees and
other expenses payable to DSC 3,117
Other expenses payable to DMC and affiliates* 14,305
*DMC, as part of its administrative 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, 2005, the Fund was
charged $4,892 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, 2005, the Fund made purchases of $113,517,853
and sales of $127,177,770 of long-term investment securities other than
long-term U.S. government securities and short-term investments. For the year
ended November 30, 2005, the Fund made purchases of $5,298,516 and sales of
$4,786,083 of long-term U.S. government securities.
At November 30, 2005, the cost of investments for federal income tax purposes
was $101,439,745. At November 30, 2005, net unrealized appreciation was
$4,069,178, of which $7,501,059 related to unrealized appreciation of
investments and $3,431,881 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
transactions and net short-term gains on sales of investment securities are
treated as ordinary income (loss) for federal income tax purposes. The tax
character of dividends and distributions paid during the years ended November
30, 2005 and 2004 was as follows:
Year Ended
11/30/05 11/30/04
Ordinary Income $2,295,845 $5,747,552
Long-Term Capital Gain 3,241,579 --
---------- ----------
Total $5,537,424 $5,747,552
========== ==========
As of November 30, 2005, the components of net assets on a tax basis were as
follows:
Shares of beneficial interest $58,693,534
Undistributed long-term capital gains 9,326,828
Unrealized appreciation of investments
and foreign currencies 4,061,214
-----------
Net assets $72,081,576
===========
The differences between book basis and tax basis components of net assets are
primarily attributable to tax deferral of losses on wash sales, tax deferral of
losses on hedging transactions, mark-to-market of forward foreign currency
contracts and tax treatment of market discount and premium on debt instruments
and treatment of contingent payment debt instruments.
For financial reporting purposes, capital accounts are adjusted to reflect the
tax character of permanent book/tax differences. Reclassifications are primarily
due to tax treatment of contingent payment debt instruments, gain (loss) on
foreign currency transactions and market discounts and premiums on certain debt
instruments. Results of operations and net assets were not affected by these
reclassifications. For the year ended November 30, 2005, the Fund recorded the
following permanent reclassifications:
Undistributed net investment income $82,751
Accumulated net realized gain (loss) (82,751)
For federal income tax purposes, $2,397,689 of capital loss carryforwards from
prior years was utilized in the year ended November 30, 2005. There are no
remaining capital loss carryforwards.
5. CAPITAL STOCK
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. There
were no shares issued under the Fund's dividend reinvestment plan.
On May 19, 2005, the Fund's Board of Directors approved a tender offer for
shares of the Fund's common stock. The tender offer authorized the Fund to
purchase up to 10% of its issued and outstanding shares at a price equal to the
Fund's net asset value at 4:00 pm. New York City time on July 1, 2005, the first
business day following expiration of the offer. The tender offer commenced on
June 3, 2005 and expired on June 30, 2005. In connection with the tender offer,
the Fund purchased 521,836 shares of capital stock at a total cost of
$7,018,700.
The Fund did not repurchase any shares under the Share Repurchase Program during
the year ended November 30, 2005.
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 19, 2006. The Fund intends on extending the
Line of Credit Agreement expiration date to January 18, 2007. At November 30,
2005, the par value of loans outstanding was $23,000,000 at a variable interest
rate of 4.67%. During the year ended November 30, 2005, the average daily
balance of loans outstanding was $24,194,521 at a weighted average interest rate
of approximately 3.62%. The maximum amount of loans outstanding at any time
during the period was $25,000,000. Effective June 24, 2005, the Fund reduced the
amount of loans outstanding to $23,000,000 in conjunction with the tender offer.
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. The loan is collateralized by the Fund's portfolio.
20
NOTES DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC.
TO FINANCIAL STATEMENTS (CONTINUED)
7. FOREIGN EXCHANGE CONTRACTS
The Fund may enter into forward foreign currency exchange contracts (and forward
foreign cross-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 and forward foreign
cross-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 and forward foreign cross-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.
8. SECURITIES LENDING
The Fund, along with other funds in the Delaware Investments(R) Family of Funds,
may lend its securities pursuant to a security lending agreement (Lending
Agreement) with J.P. Morgan Chase. Initial security loans made pursuant to the
Lending Agreement are required to be secured by U.S. Treasury obligations and/or
cash collateral not less than 102% of the market value of securities issued in
the United States and 105% of the market value of the 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, 2005, the market value of the securities on loan was
$10,381,464, 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, 2005, the Fund's geographic diversification (based on the
issuer of each security's domicile) of its investment portfolio before security
lending collateral was as follows:
PERCENTAGE
COUNTRY MARKET VALUE OF NET ASSETS
- ------- ------------ -------------
Australia $ 812,403 1.13%
Austria 1,619,679 2.25%
Belgium 430,917 0.60%
Britain 4,166,056 5.78%
Canada 4,860,746 6.74%
Cayman Islands 58,988 0.08%
Denmark 424,317 0.59%
Finland 473,916 0.66%
France 4,313,976 5.98%
Germany 3,461,334 4.80%
Hong Kong 609,994 0.85%
Ireland 132,000 0.18%
Japan 4,204,000 5.83%
Liberia 90,738 0.13%
Luxembourg 829,651 1.15%
Marshall Islands 131,950 0.18%
Mexico 933,405 1.30%
Multinational 88,350 0.12%
Netherlands Antilles 180,424 0.25%
Netherlands 1,206,339 1.67%
Norway 480,679 0.67%
Poland 879,648 1.22%
Portugal 288,970 0.40%
Singapore 10,250 0.01%
Supranational 1,704,207 2.36%
South Africa 469,805 0.65%
South Korea 494,925 0.69%
Spain 472,198 0.66%
Sweden 3,171,520 4.40%
Switzerland 444,344 0.62%
United States 57,365,224 79.58%
----------- -------
$94,810,953 131.53%
----------- -------
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.
21
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 is 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 a portion of its assets in high-yield fixed income securities,
which carry ratings of BB or lower by Standard & Poor's Ratings Group and/or Ba
or lower by Moody's Investors Service, Inc. Investments in these higher yielding
securities are generally accompanied by a greater degree of credit risk than
higher rated securities. Additionally, lower rated securities may be more
susceptible to adverse economic and competitive industry conditions than
investment grade securities.
The Fund may invest up to 10% of its total assets in illiquid securities, which
may include securities with contractual restrictions on resale, securities
exempt from registration under Rule 144A of the Securities Act of 1933, as
amended, and other securities which may not be readily marketable. The relative
illiquidity of these securities may impair the Fund from disposing of them in a
timely manner and at a fair price when it is necessary or desirable to do so.
While maintaining oversight, the Board of Directors has delegated to the
investment advisor the day-to-day functions of determining whether individual
securities are liquid for purposes of the Fund's limitation on investments in
illiquid assets. At November 30, 2005, no securities have been determined to be
illiquid under the Fund's Liquidity Procedures.
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,
2005. 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.
22
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 Delaware Investments
Global Dividend and Income Fund, Inc. (the "Fund") as of November 30, 2005, 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. We were
not engaged to perform an audit of the Fund's internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Fund's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of November 30, 2005, by correspondence with the custodian
and brokers or by other appropriate auditing procedures where replies from
brokers were not received. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Delaware Investments Global Dividend and Income Fund, Inc. at November 30, 2005,
the results of its operations and 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.
Ernst & Young LLP
Philadelphia, Pennsylvania
January 11, 2006
24
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, 2005, the Fund designates distributions
paid during the year as follows:
(A) (B)
Long-Term Ordinary
Capital Gains Income Total (C)
Distributions Distributions* Distribution Qualifying
(Tax Basis) (Tax Basis) (Tax Basis) Dividends(1)
- -------------- -------------- ------------- ------------
59% 41% 100% 19%
(A) and (B) are based on a percentage of the Fund's total distributions.
(C) is based on a percentage of ordinary income of the Fund.
(1) Qualifying dividends represent dividends which qualify for the corporate
dividends received deduction.
*For the fiscal year ended November 30, 2005, certain dividends paid by the
Fund 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 $2,295,845 to be taxed at a maximum rate of 15%.
Complete information will be computed and reported in conjunction with your
2005 Form 1099-DIV.
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 2005 to the NYSE on August 31, 2005 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
From N-Q filings are available on the Commission's web site at
http://www.sec.gov.
BY-LAWS (UNAUDITED)
The Fund recently amended and restated its By-Laws. The following provisions
were included in the Fund's Amended and Restated By-Laws.
ARTICLE II, SECTION 3. SPECIAL MEETINGS.
----------------
Special meetings of the stockholders may be called at any time by the
Chairperson, President or a majority of the members of the Board of Directors
and shall be called by the secretary of the Corporation upon the written request
of the holders of at least a majority of the shares of the capital stock of the
Corporation issued and outstanding and entitled to vote at such meeting. Upon
receipt of a written request from such holders entitled to call a special
meeting, which shall state the purpose of the meeting and the matter proposed to
be acted on at it, the secretary shall issue notice of such meeting. The cost of
preparing and mailing the notice of a special meeting of stockholders shall be
borne by the Corporation. Special meetings of the stockholders shall be held at
the principal office of the Corporation, or at such place within or without the
State of Maryland as shall be specified in the notice of such meeting.
ARTICLE III, SECTION 2. NUMBER OF DIRECTORS.
-------------------
The Board of Directors shall consist of not less than three members; provided,
however, that if there are fewer than three stockholders, then the number of
directors may be the same as the number of stockholders, but not less than one.
The Board of Directs may alter the number of directors set by these By-Laws in
accordance with applicable provisions of law; provided however, that such action
shall not affect the tenure of office of any director.
24
OTHER DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC.
FUND INFORMATION (CONTINUED)
PROXY RESULTS (UNAUDITED)
The Fund held its Annual Meeting of Shareholders on August 17, 2005. At the
Annual Meeting the Fund's shareholders elected nine Directors. The results of
the voting at the meeting were as follows:
Nominee Shares Voted For Shares Voted Against
- ------- ---------------- --------------------
Jude T. Driscoll 5,583,304 132,059
Thomas L. Bennett 5,574,886 140,477
John A. Fry 5,584,338 131,025
Anthony D. Knerr 5,580,923 134,440
Lucinda S. Landreth 5,578,156 137,207
Ann R. Leven 5,581,493 133,870
Thomas F. Madison 5,577,120 138,243
Janet L. Yeomans 5,577,433 137,930
J. Richard Zecher 5,579,441 135,922
CHANGES TO FUND'S INVESTMENT OBJECTIVES AND POLICIES (UNAUDITED)
In August 2005, the Fund's Board of Directors approved the following changes in
investment strategies. The changes became effective on November 14, 2005, after
a 60 day notice period.
NON-INCOME PRODUCING COMMON STOCKS
The Fund may invest up to 15 percent of its total assets in non-income producing
common stocks, as set forth in the following paragraph:
The Fund's primary investment objective is high current income. Capital
appreciation is a secondary objective. Under normal market conditions, the Fund
will invest at least 50% of its total assets in a wide variety of income
generating equity securities, including dividend paying common stocks,
convertible securities, preferred stocks and other equity related securities
(collectively, "Income Generating Equity Securities") of U.S. and foreign
issuers. The balance of the Fund's total assets will generally be invested in
non-convertible debt securities consisting primarily of corporate and government
bonds of U.S. and foreign issuers. The Fund may also invest up to 15% of its
total assets in non-income producing common stock. There is no assurance that
the Fund will achieve its investment objectives.
SECURITY SELECTION PROCESS
The Fund will adhere to the following policy regarding the selection of
securities:
In selecting investments for the Fund's portfolio, Delaware Management Company
(the "Manager") employs a yield-oriented and value driven approach. The Manager
analyzes economic and market conditions, and assesses the income and potential
for appreciation that can be achieved from the equity investments being
considered. The Manager will then apply fundamental analysis to identify the
equity securities that it believes can best help the Fund meet its investment
objectives. The industry sector weightings in the Income Generating Equity
Securities (as defined above) portion of the Fund's portfolio will be determined
based on the Manager's investment research efforts.
This new policy replaces the following policy regarding the selection of
securities:
In selecting investments for the Fund's portfolio, the Manager employs a
yield-oriented and value-driven approach. A preponderance of the Income
Generating Equity Securities in the Fund's portfolio will be selected by the
Manager from among the top two quintiles in terms of yield of all Income
Generating Equity Securities in each country in which the Fund invests, as
determined by the Manager. Foreign countries are selected by the Manager based
upon an evaluation of yield and total return over market cycles in the specific
country. After identifying such Income Generating Equity Securities, the manager
will then apply fundamental investment analysis and, with respect to foreign
securities, consider the effect of currency risk, to select the Fund's specific
portfolio securities. The industry sector weightings in the Income Generating
Equity Securities portion of the Fund's portfolio will be determined based on
the Manager's investment research efforts.
25
OTHER DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC.
FUND INFORMATION (CONTINUED)
CHANGES TO FUND'S INVESTMENT OBJECTIVES AND POLICIES (UNAUDITED) (CONTINUED)
DEFINITION OF COMMON STOCK
The Fund will adhere to the following definition of common stock:
Common stock is defined as shares of a corporation that entitle the holder to a
pro rata share of the profits of the corporation, if any, without a preference
over any other shareholder or class of shareholders, including holders of the
corporation's preferred stock and other senior equity. Common stock usually
carries with it the right to vote and frequently an exclusive right to do so.
Holders of common stock also have the right to participate in the remaining
assets of the corporation after all claims are paid, including those of debt
securities and preferred stock. In selecting common stocks for investment, the
Manager will generally focus on a variety of factors, including, among other
things, the earnings and cash flow potential and the asset value of the issuer.
TENDER OFFERS (UNAUDITED)
As described in Note 5 to the Financial Statements, the Fund conducted a tender
offer in 2005. There can be no assurance that a tender offer will reduce or
eliminate any spread between market price and the net asset value of the Fund's
shares. The market price of the shares will, among other things, be determined
by the relative demand for and supply of shares in the market, the Fund's
investment performance, the Fund's dividends and yields and investor perception
of the Fund's overall attractiveness as an investment as compared with other
investment alternatives. Nevertheless, the fact that a tender offer may be
conducted may result in more of a reduction in the spread between market price
and net asset value than might otherwise be the case. The Fund's Board of
Directors, consistent with its fiduciary obligations, may explore alternatives
to a tender offer to reduce or eliminate the Fund's potential market value
discount from net asset value. Therefore, the Fund cannot provide assurance that
it will make tender offers in the future.
The tender offer plan described in the Fund's prospectus contemplates that a
shareholder wishing to accept a tender offer must tender all (but not less than
all) of the Fund shares owned by the shareholder or attributed to it under
Section 318 of the Internal Revenue Code, unless the Fund has received a private
letter ruling the Internal Revenue Service that a tender of less than all of a
shareholder's shares will not cause non-tendering shareholders to realize
constructive distributions on their shares under Section 305 of the Internal
Revenue Code. The Fund has obtained such a ruling in the past. There is no
guarantee that the Fund will be able to obtain a similar ruling in the future.
Nevertheless, if the Fund determines to conduct another tender offer in the
future, the Fund may, in its discretion, choose whether or not to accept tenders
of less than all of a shareholder's shares.
DISTRIBUTION INFORMATION (UNAUDITED)
Shareholders were sent monthly notices from the Fund that set forth estimates,
on a book basis, of the source or sources from which monthly distributions were
paid. Subsequently, these estimates may have been corrected in part. Listed
below is a written statement of the sources of these monthly distributions, as
corrected, on a book basis.
Net Investment Return of Long Term Total
Income Capital Capital Gain Distribution
per share per share per share Amount
------------- --------- ------------- ------------
12/04 $0.057 $0.023 $ -- $0.080
1/05 0.021 0.059 -- 0.080
2/05 0.026 0.054 -- 0.080
3/05 0.058 -- 0.022 0.080
4/05 0.043 -- 0.037 0.080
5/05 0.038 -- 0.042 0.080
6/05 0.042 -- 0.038 0.080
7/05 0.025 -- 0.055 0.080
8/05 0.024 -- 0.056 0.080
9/05 0.032 -- 0.048 0.080
10/05 0.016 -- 0.064 0.080
11/05 0.042 -- 0.038 0.080
------ ------ ------ ------
$0.424 $0.136 $0.400 $0.960
====== ====== ====== ======
Please note that the information in the preceding chart is for book purposes
only. Shareholders should be aware that the tax treatment of distributions may
differ from their book treatment. The tax treatment of distributions will be set
forth in a Form 1099-DIV.
26
DELAWARE INVESTMENTS(R) FAMILY OF FUNDS
BOARD OF TRUSTEES/DIRECTORS AND OFFICERS ADDENDUM
A fund is governed by a Board of Trustees/Directors ("Trustees"), which has
oversight responsibility for the management of a fund's business affairs.
Trustees establish procedures and oversee and review the performance of the
investment manager and others who perform services for the fund. The independent
fund trustees, in particular, are advocates for shareholder interests. The
following is a list of the Trustees 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 TRUSTEE TRUSTEE
AND BIRTHDATE FUND(S) SERVED PAST 5 YEARS OR OFFICER OR OFFICER
- ------------------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEES
JUDE T. DRISCOLL(2) Chairman, 5 Years - Since August 2000, 87 None
2005 Market Street President, Executive Officer Mr. Driscoll has served in
Philadelphia, PA Chief Executive various executive capacities
19103 Officer and 2 Years - at different times at
Trustee Trustee Delaware Investments(1)
March 10, 1963
- ------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
THOMAS L. BENNETT Trustee Since Private Investor - 87 None
2005 Market Street March 23, 2005 (March 2004 - Present)
Philadelphia, PA
19103 Investment Manager -
Morgan Stanley & Co.
October 4, 1947 (January 1984 - March 2004)
- ------------------------------------------------------------------------------------------------------------------------------------
JOHN A. FRY Trustee 4 Years President - 87 Director -
2005 Market Street Franklin & Marshall College Community Health
Philadelphia, PA (June 2002 - Present) Systems
19103
Executive Vice President -
May 28, 1960 University of Pennsylvania
(April 1995 - June 2002)
- ------------------------------------------------------------------------------------------------------------------------------------
ANTHONY D. KNERR Trustee 12 Years Founder/Managing Director - 87 None
2005 Market Street Anthony Knerr & Associates
Philadelphia, PA (Strategic Consulting)
19103 (1990 - Present)
December 7, 1938
- ------------------------------------------------------------------------------------------------------------------------------------
LUCINDA S. LANDRETH Trustee Since Chief Investment Officer - 87 None
2005 Market Street March 23, 2005 Assurant, Inc.
Philadelphia, PA (Insurance)
19103 (2002 - 2004)
June 24, 1947
- ------------------------------------------------------------------------------------------------------------------------------------
ANN R. LEVEN Trustee 16 Years Treasurer/Chief Fiscal Officer - 87 Director and
2005 Market Street National Gallery of Art Audit Committee
Philadelphia, PA (1994 - 1999) Chairperson - Andy
19103 Warhol Foundation
November 1, 1940 Director and Audit
Committee Member -
Systemax Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
27
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 TRUSTEE TRUSTEE
AND BIRTHDATE FUND(S) SERVED PAST 5 YEARS OR OFFICER OR OFFICER
- ------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES (CONTINUED)
THOMAS F. MADISON Trustee 11 Years President/Chief 87 Director -
2005 Market Street Executive Officer - Banner Health
Philadelphia, PA MLM Partners, Inc.
19103 (Small Business Investing Director -
and Consulting) CenterPoint Energy
February 25, 1936 (January 1993 - Present)
Director and Audit
Committee Member -
Digital River Inc.
Director and Audit
Committee Member -
Rimage
Corporation
Director - Valmont
Industries, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
JANET L. YEOMANS Trustee 6 Years Vice President 87 None
2005 Market Street (January 2003 - Present)
Philadelphia, PA and Treasurer
19103 (January 2006 - Present)
3M Corporation
July 31, 1948
Ms. Yeomans has held
various management positions
at 3M Corporation since 1983.
- ------------------------------------------------------------------------------------------------------------------------------------
J. RICHARD ZECHER Trustee Since Founder - 87 Director and Audit
2005 Market Street March 23, 2005 Investor Analytics Committee Member -
Philadelphia, PA (Risk Management) Investor Analytics
19103 (May 1999 - Present)
Director and Audit
July 3, 1940 Committee Member -
Oxigene, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
OFFICERS
MICHAEL P. BISHOF Senior Chief Financial Mr. Bishof has served 87 None(3)
2005 Market Street Vice President Officer since in various executive
Philadelphia, PA and February 17, 2005 capacities at different
19103 Chief Financial times at Delaware
Officer Investments.
August 18, 1962
- ------------------------------------------------------------------------------------------------------------------------------------
DAVID F. CONNOR Vice President, Vice President since Mr. Connor has served as 87 None(3)
2005 Market Street Deputy General September 21, 2000 Vice President and Deputy
Philadelphia, PA Counsel and Secretary and Secretary General Counsel of
19103 since Delaware Investments
October 25, 2005 since 2000.
December 2, 1963
- ------------------------------------------------------------------------------------------------------------------------------------
DAVID P. O'CONNOR Senior Vice Senior Vice President, Mr. O'Connor has served 87 None(3)
2005 Market Street President, General Counsel and in various executive
Philadelphia, PA General Counsel Chief Legal Officer and legal capacities at
19103 and Chief since different times at
Legal Officer October 25, 2005 Delaware Investments.
February 21, 1966
- ------------------------------------------------------------------------------------------------------------------------------------
JOHN J. O'CONNOR Senior Vice President Treasurer Mr. O'Connor has served in 87 None(3)
2005 Market Street and Treasurer since various executive capacities
Philadelphia, PA February 17, 2005 at different times at
19103 Delaware Investments.
June 16, 1957
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Delaware Investments is the marketing name for Delaware Management
Holdings, Inc. and its subsidiaries, including the Fund's(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(s') manager and distributor.
(3) Mr. Bishof, Mr. Connor, Mr. David P. O'Connor and Mr. John J. O'Connor
serve in similar capacities for the six portfolios of the Optimum Fund
Trust, which have the same investment advisor as the registrant. Mr. John
J. O'Connor also serves in a similar capacity for Lincoln Variable
Insurance Products Trust, which has the same investment advisor as the
registrant.
28
ABOUT
THE ORGANIZATION
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 that 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 MICHAEL P. BISHOF INVESTMENT MANAGER
Chairman Senior Vice President and Delaware Management Company,
Delaware Investments(R) Family of Funds Chief Financial Officer a Series of Delaware Management Business Trust
Philadelphia, PA Delaware Investments(R) Family of Funds Philadelphia, PA
Philadelphia, PA
THOMAS L. BENNETT PRINCIPAL OFFICE OF THE FUND
Private Investor DAVID F. CONNOR 2005 Market Street
Rosemont, PA Vice President, Deputy General Counsel Philadelphia, PA 19103
and Secretary
JOHN A. FRY Delaware Investments(R) Family of Funds INDEPENDENT REGISTERED PUBLIC
President Philadelphia, PA ACCOUNTING FIRM
Franklin & Marshall College Ernst & Young LLP
Lancaster, PA DAVID P. O'CONNOR 2001 Market Street
Senior Vice President, General Counsel Philadelphia, PA 19103
ANTHONY D. KNERR and Chief Legal Officer
Managing Director Delaware Investments(R) Family of Funds REGISTRANT AND STOCK TRANSFER AGENT
Anthony Knerr & Associates Philadelphia, PA Mellon Investor Services, LLC
New York, NY 480 Washington Boulevard
JOHN J. O'CONNOR Jersey City, NJ 07310
LUCINDA S. LANDRETH Senior Vice President and Treasurer 800 851-9677
Former Chief Investment Officer Delaware Investments(R) Family of Funds
Assurant, Inc. Philadelphia, PA FOR SECURITIES DEALERS AND FINANCIAL
Philadelphia, PA INSTITUTIONS REPRESENTATIVES ONLY
+-------------------------------------+ 800 362-7500
ANN R. LEVEN | The Fund files its complete |
Former Treasurer/Chief Fiscal Officer | schedule of portfolio holdings | WEB SITE
National Gallery of Art | with the Securities and Exchange | www.delawareinvestments.com
Washington, DC | Commission for the first and |
| third quarters of each fiscal | Delaware Investments is the marketing name for
THOMAS F. MADISON | year on Form N-Q. The Fund's | Delaware Management Holdings, Inc. and
President and Chief Executive Officer | Forms N-Q, as well as a | its subsidiaries.
MLM Partners, Inc. | description of the policies and |
Minneapolis, MN | procedures that the Fund uses to |
| determine how to vote proxies (if |
JANET L. YEOMANS | any) relating to portfolio |
Vice President and Treasurer | securities is available without |
3M Corporation | charge (i) upon request, by |
St. Paul, MN | calling 800 523-1918; (ii) on the |
| Fund's Web site at |
J. RICHARD ZECHER | http://www.delawareinvestments.com; |
Founder | and (iii) on the Commission's Web |
Investor Analytics | site at http://www.sec.gov. The |
Scottsdale, AZ | Fund's Forms N-Q may be reviewed |
| and copied at the Commission's |
| Public Reference Room in |
| Washington, DC; information on | +-------------------------------------+
| the operation of the Public | | YOUR REINVESTMENT OPTIONS |
| Reference Room may be obtained by | | Delaware Investments Global |
| calling 800-SEC-0330. | | Dividend and Income Fund, Inc. |
| | | offers an automatic dividend |
| Information (if any) regarding | | reinvestment program. If you |
| how the Fund voted proxies | | would like to reinvest dividends, |
| relating to portfolio securities | | and shares are registered in your |
| during the most recently | | name, contact Mellon Investor |
| disclosed 12-month period ended | | Services, LLC at 800 851-9677. |
| June 30 is available without | | You will be asked to put your |
| charge (i) through the Fund's Web | | request in writing. If you have |
| site at | | shares registered in "street" |
| http://www.delawareinvestments.com; | | name, contact the broker/dealer |
| and (ii) on the Commission's Web | | holding the shares or your |
| site at http://www.sec.gov. | | financial advisor. |
+-------------------------------------+ +-------------------------------------+
29
Delaware DFG
Investments(R) LISTED
- ----------------------------------- NYSE
A member of Lincoln Financial Group THE NEW YORK STOCK EXCHANGE
CONTACT INFORMATION
WEB SITE
www.delawareinvestments.com
E-MAIL
service@delinvest.com
SHAREHOLDER SERVICE CENTER
800 523-1918
Call the Shareholder Service Center Monday to Friday, 8 a.m. to 7 p.m.
Eastern Time:
o For fund information, literature, price, yield and performance figures.
o For information on existing regular investment accounts and retirement
plan accounts including wire investments, wire redemptions, telephone
redemptions and telephone exchanges.
DELAPHONE SERVICE
800 362-FUND (800 362-3863)
o For convenient access to account information or current performance
information on all Delaware Investments(R) Funds seven days a week,
24 hours a day, use this Touch-Tone(R) service.
- --------------------------------------------------------------------------------
Printed in the USA
(9982) ANN-0512 GDI
AR-DGF [11/05] IVES 1/06 MF0512077 PO10661
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:
Thomas L. Bennett (1)
Thomas F. Madison
Janet L. Yeomans (1)
J. Richard Zecher
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 $11,600 for
the fiscal year ended November 30, 2005.
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.
(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, 2005.
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 and other service providers under common
control with the adviser and that relate directly to the operations or financial
reporting of the registrant were $16,350 for the registrant's fiscal year ended
November 30, 2005. 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.
- -----------------------
(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 Mr.
Bennett qualifies as an audit committee financial expert by virtue of his
education, Chartered Financial Analyst designation, and his experience as a
credit analyst, portfolio manager and the manager of other credit analysts and
portfolio managers. 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.
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 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 and other service providers under common
control with the adviser 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.
(c) Tax fees.
The aggregate fees billed by the registrant's independent auditors for
tax-related services provided to the registrant were $2,100 for the fiscal year
ended November 30, 2005. 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 return and review of annual excise distribution calculation.
The aggregate fees billed by the registrant's independent auditors for
tax-related services provided to the registrant's investment adviser and other
service providers under common control with the adviser and that relate directly
to the operations or financial reporting of the registrant were $0 for the
registrant's fiscal year ended November 30, 2005.
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 return and review of annual excise distribution calculation.
The aggregate fees billed by the registrant's independent auditors for
tax-related services provided to the registrant's adviser and other service
providers under common control with the adviser 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.
(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, 2005.
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 and other service providers under common
control with the adviser and that relate directly to the operations or financial
reporting of the registrant were $0 for the registrant's fiscal year ended
November 30, 2005
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 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 and other service providers under common
control with the adviser 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.
(e) The registrant's Audit Committee has established pre-approval
policies and procedures as permitted by Rule 2-01(c)(7)(i)(B) of Regulation
S-X (the "Pre-Approval Policy") with respect to services provided by the
registrant's independent auditors. Pursuant to the Pre-Approval Policy, the
Audit Committee has pre-approved the services set forth in the table below
with respect to the registrant up to the specified fee limits. Certain fee
limits are based on aggregate fees to the registrant and other registrants
within the Delaware Investments Family of Funds.
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SERVICE RANGE OF FEES
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AUDIT SERVICES
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Statutory audits or financial audits for new Funds up to $25,000 per Fund
- --------------------------------------------------------------------------------------------------------------------
Services associated with SEC registration statements (e.g., Form N-1A, Form
N-14, etc.), periodic reports and other documents filed with the SEC or other
documents issued in connection with securities offerings (e.g., comfort letters up to $10,000 per Fund
for closed-end Fund offerings, consents), and assistance in responding to SEC
comment letters
- --------------------------------------------------------------------------------------------------------------------
Consultations by Fund management as to the accounting or disclosure treatment of
transactions or events and/or the actual or potential impact of final or
proposed rules, standards or interpretations by the SEC, FASB, or other up to $25,000 in the aggregate
regulatory or standard-setting bodies (Note: Under SEC rules, some
consultations may be considered "audit-related services" rather than "audit
services")
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AUDIT-RELATED SERVICES
- --------------------------------------------------------------------------------------------------------------------
Consultations by Fund management as to the accounting or disclosure treatment of
transactions or events and /or the actual or potential impact of final or
proposed rules, standards or interpretations by the SEC, FASB, or other up to $25,000 in the aggregate
regulatory or standard-setting bodies (Note: Under SEC rules, some
consultations may be considered "audit services" rather than "audit-related
services")
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TAX SERVICES
- --------------------------------------------------------------------------------------------------------------------
U.S. federal, state and local and international tax planning and advice (e.g.,
consulting on statutory, regulatory or administrative developments, evaluation up to $25,000 in the aggregate
of Funds' tax compliance function, etc.)
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U.S. federal, state and local tax compliance (e.g., excise distribution up to $5,000 per Fund
reviews, etc.)
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Review of federal, state, local and international income, franchise and other up to $5,000 per Fund
tax returns
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Under the Pre-Approval Policy, the Audit Committee has also
pre-approved the services set forth in the table below with respect to the
registrant's investment adviser and other entities controlling, controlled by or
under common control with the investment adviser that provide ongoing services
to the registrant (the "Control Affiliates") up to the specified fee limit. This
fee limit is based on aggregate fees to the investment adviser and its Control
Affiliates.
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SERVICE RANGE OF FEES
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NON-AUDIT SERVICES
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Services associated with periodic reports and other documents filed with the up to $10,000 in the aggregate
SEC and assistance in responding to SEC comment letters
- --------------------------------------------------------------------------------- -----------------------------------
The Pre-Approval Policy requires the registrant's independent auditors
to report to the Audit Committee at each of its regular meetings regarding all
services initiated since the last such report was rendered, including those
services authorized by the Pre-Approval Policy.
(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
and other service providers under common control with the adviser were $207,335
and $340,584 for the registrant's fiscal years ended November 30, 2005 and
November 30, 2004, 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 and other service
providers under common control with the adviser 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 Thomas L.
Bennett, Thomas F. Madison, Janet L. Yeomans and J. Richard Zecher.
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. 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.
DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC.
JUDE T. DRISCOLL
- ------------------------------------
By: Jude T. Driscoll
Title: Chief Executive Officer
Date: February 1, 2006
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: Chief Executive Officer
Date: February 1, 2006
MICHAEL P. BISHOF
- ------------------------------------
By: Michael P. Bishof
Title: Chief Financial Officer
Date: February 1, 2006