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: May 31, 2006
Item 1. Reports to Stockholders
Semiannual Delaware Investments
Report Global Dividend and
Income Fund, Inc.
May 31, 2006
[DELAWARE LOGO] Closed-End
<page>
Table of contents
> Sector and country allocation ...............................................1
> Statement of net assets .....................................................3
> Statement of operations ....................................................14
> Statements of changes in net assets ........................................15
> Statement of cash flows ....................................................16
> Financial highlights ...................................................... 17
> Notes to financial statements ..............................................18
> Other Fund information .....................................................22
> About the organization .....................................................24
Funds are not FDIC insured and are not guaranteed. It is possible to lose the
principal amount invested.
Mutual fund advisory services provided by Delaware Management Company, a series
of Delaware Management Business Trust, which is a registered investment advisor.
(C) 2006 Delaware Distributors, L.P.
<page>
Sector and country allocation
Delaware Investments Global Dividend and Income Fund, Inc.
As of May 31, 2006
Percentage
Sector/Country of Net Assets
_______________________________________________________________________________
Common Stock 75.51%
Consumer Discretionary 10.74%
Consumer Staples 6.40%
Energy 3.07%
Financials 15.49%
Health Care 9.61%
Health Care REITs 0.41%
Industrial REITs 1.21%
Industrials 5.00%
Information Technology 7.41%
Lodging REITs 0.77%
Mall REITs 0.79%
Manufactured Housing REITs 0.20%
Materials 3.30%
Mortgage REITs 3.57%
Office/Industrial REITs 1.13%
Office REITs 1.00%
Shopping Center REITs 0.35%
Specialty REITs 0.40%
Telecommunications 3.68%
Utilities 0.98%
_______________________________________________________________________________
Convertible Preferred Stock 3.42%
Banking, Finance & Insurance 1.34%
Basic Materials 0.29%
Cable, Media & Publishing 0.20%
Consumer Products 0.26%
Energy 0.35%
Food, Beverage & Tobacco 0.28%
Telecommunications 0.11%
Utilities 0.59%
_______________________________________________________________________________
Preferred Stock 3.20%
Leisure, Lodging & Entertainment 0.62%
Real Estate 2.58%
_______________________________________________________________________________
Right 0.01%
_______________________________________________________________________________
Warrant 0.00%
_______________________________________________________________________________
Agency Obligations 0.23%
_______________________________________________________________________________
Commercial Mortgage-Backed Securities 0.12%
_______________________________________________________________________________
Convertible Bonds 5.65%
Aerospace & Defence 0.43%
Cable, Media & Publishing 0.21%
Computers & Technology 0.83%
Energy 0.82%
Health Care & Pharmaceuticals 1.01%
Leisure, Lodging & Entertainment 0.25%
Real Estate 0.48%
Retail 0.67%
Technology 0.41%
Telecommunications 0.14%
Transportation 0.07%
Utilities 0.33%
_______________________________________________________________________________
Corporate Bonds 20.48%
Banking 0.14%
Basic Industry 2.18%
Brokerage 0.48%
Capital Goods 1.05%
Consumer Cyclical 1.87%
Consumer Non-Cyclical 2.11%
Energy 1.10%
Finance & Investments 1.49%
Media 2.48%
Real Estate 0.40%
Services Cyclical 2.51%
Services Non-cyclical 1.00%
Technology & Electronics 0.37%
Telecommunications 2.12%
Utilities 1.18%
_______________________________________________________________________________
Foreign Agencies 2.66%
Austria 0.33%
Germany 1.87%
United States 0.46%
_______________________________________________________________________________
Regional Agencies 0.98%
_______________________________________________________________________________
Regional Authority 0.47%
_______________________________________________________________________________
Sovereign Agencies 1.59%
France 0.92%
Japan 0.67%
_______________________________________________________________________________
Sovereign Debt 10.07%
Austria 1.58%
Czechoslovakia 0.23%
France 1.54%
Germany 2.13%
Korea 0.69%
Malaysia 0.45%
Netherlands 0.34%
Norway 0.47%
Poland 0.46%
Sweden 1.15%
United Kingdom 1.03%
_______________________________________________________________________________
Supranational Banks 4.52%
_______________________________________________________________________________
Currency Options Purchased 0.00%
_______________________________________________________________________________
(continues) 1
<page>
Sector and country allocation
Delaware Investments Global Dividend and Income Fund, Inc.
As of May 31, 2006
Percentage
Sector/Country of Net Assets
_______________________________________________________________________________
Repurchase Agreements 4.92%
_______________________________________________________________________________
Securities Lending Collateral 23.25%
Fixed Rate Notes 6.28%
Variable Rate Notes 16.97%
_______________________________________________________________________________
Total Market Value of Securities 157.08%
_______________________________________________________________________________
Obligation to Return Securities Lending Collateral (23.25%)
_______________________________________________________________________________
Borrowing Under Line of Credit (34.39%)
_______________________________________________________________________________
Receivables and Other Assets Net of Liabilities 0.56%
_______________________________________________________________________________
Total Net Assets 100.00%
_______________________________________________________________________________
Country
_______________________________________________________________________________
Australia 2.56%
Austria 1.90%
Belgium 0.66%
Bermuda 0.24%
British Virgin Islands 0.16%
Canada 3.46%
Cayman Islands 0.08%
Denmark 0.78%
Finland 1.14%
France 8.05%
Germany 6.28%
Hong Kong 0.52%
Ireland 0.08%
Japan 7.35%
Liberia 0.04%
Luxembourg 0.93%
Malaysia 0.45%
Marshall Island 0.19%
Mexico 1.10%
Multinational 0.17%
Netherlands 1.28%
Netherlands Antilles 0.35%
Norway 1.10%
Poland 0.46%
South Africa 0.70%
South Korea 1.39%
Slovakia 0.23%
Supranational 4.52%
Sweden 2.09%
Switzerland 0.65%
United Kingdom 6.76%
United States 73.24%
_______________________________________________________________________________
Total 128.91%
_______________________________________________________________________________
2
<page>
Statement of net assets
Delaware Investments Global Dividend and Income Fund, Inc.
May 31, 2006 (Unaudited)
Number Market Value
of Shares (U.S.$)
_______________________________________________________________________________
Common Stock - 75.51%>
_______________________________________________________________________________
Consumer Discretionary - 10.74%
@=+II Avado Brands Restricted 272 $ 256
Bayerische Motoren Werke 10,200 526,059
DSG International 64,900 237,002
Esprit Holdings 43,000 345,702
Gap 35,700 649,740
*+ Great Wolf Resorts 19,000 224,580
Honda Motor 5,300 349,509
Kesa Electricals 90,300 500,380
* Lagardere Groupe 5,900 466,183
Limited Brands 28,200 765,913
Mattel 43,300 727,873
* Michelin 6,500 425,666
* Nissan 35,400 428,560
Sony 5,500 248,261
Travis Perkins 15,900 454,768
* Volkswagen 3,101 219,632
WPP Group 48,900 603,612
+ XM Satellite Radio Holdings Class A 400 5,768
____________
7,179,464
____________
Consumer Staples - 6.40%
* B&G Foods 2,500 38,500
Coca-Cola Amatil 85,838 454,013
ConAgra Foods 31,800 718,680
Greggs 932 65,456
Heinz (H.J.) 17,500 741,125
* Kao 16,000 399,236
Kimberly-Clark 10,600 643,102
* Metro 10,460 593,580
Safeway 26,600 627,228
____________
4,280,920
____________
Energy - 3.07%
Chevron 11,100 663,669
ConocoPhillips 9,400 594,926
*+ Petroleum Geo-Services ADR 691 44,051
* Total 11,560 749,902
____________
2,052,548
____________
Financials - 15.49%
Allstate 11,600 638,116
Aon 17,500 623,875
* AXA 12,700 442,021
Chubb 12,800 646,784
* Dexia 18,100 444,193
Hartford Financial Services Group 7,300 641,962
HBOS 21,800 373,015
Huntington Bancshares 26,500 623,280
* ING Groep 15,800 619,031
* Kookmin Bank ADR 5,800 466,784
Mitsubishi UFJ Financial Group 33 453,484
Morgan Stanley 11,100 661,782
Nordea Bank AB 45,300 547,007
Royal & Sun Alliance Insurance Group 206,000 495,316
Royal Bank of Scotland Group 16,700 539,036
Standard Chartered 19,000 466,272
Wachovia 11,900 636,650
Washington Mutual 14,500 665,695
Westpac Banking 21,400 372,280
____________
10,356,583
____________
Health Care - 9.61%
Abbott Laboratories 16,000 683,201
Baxter International 16,700 629,590
Bristol-Myers Squibb 27,400 672,670
Merck 19,800 659,142
Novartis 7,800 432,551
Novo Nordisk 7,200 446,374
* Ono Pharmaceutical 9,100 445,666
Pfizer 27,000 638,820
* Sanofi-Aventis 5,300 500,150
Stada Arzneimittel 4,574 183,735
* Terumo 14,300 509,463
Wyeth 13,700 626,638
____________
6,428,000
____________
Health Care REITs - 0.41%
# Medical Properties Trust 144A 9,400 113,834
Ventas 4,900 158,956
____________
272,790
____________
Industrial REITs - 1.21%
AMB Property 6,600 326,238
ProLogis 9,800 484,610
____________
810,848
____________
Industrials - 5.00%
* Asahi Glass 23,000 306,181
+ British Airways 71,700 457,758
Canadian Pacific Railway 8,800 452,163
* Compagnie de Saint-Gobain 6,800 476,579
Donnelley (R.R.) & Sons 20,100 646,818
*+ Foster Wheeler 1,769 78,292
* Macquarie Infrastructure 9,500 264,100
Waste Management 18,000 659,159
____________
3,341,050
____________
Information Technology - 7.41%
Canon 6,800 476,058
+ CGI Group 76,600 507,630
Fujitsu 48,000 356,095
Hewlett-Packard 19,600 634,647
Intel 34,800 627,096
International Business Machines 7,700 615,230
Nokia Oyj 25,400 544,805
* Tandberg 44,900 383,717
(continues) 3
<page>
Statement of net assets
Delaware Investments Global Dividend and Income Fund, Inc.
May 31, 2006 (Unaudited)
Number Market Value
of Shares (U.S.$)
_______________________________________________________________________________
Common Stock (continued)
_______________________________________________________________________________
Information Technology (continued)
TietoEnator Oyj 7,645 $ 217,347
+ Xerox 43,000 590,390
__________
4,953,015
__________
Lodging REITs - 0.77%
* Highland Hospitality 13,600 164,560
* Strategic Hotel Capital 17,000 348,840
__________
513,400
__________
Mall REITs - 0.79%
Macerich 3,000 206,730
Simon Property Group 4,000 318,520
__________
525,250
__________
Manufactured Housing REITs - 0.20%
Equity Lifestyle Properties 3,100 133,765
__________
133,765
__________
Materials - 3.30%
Alcan Aluminium 6,400 331,460
Cemex 63,500 361,018
duPont (E.I.) deNemours 14,800 629,445
Lafarge 3,728 446,997
Rio Tinto 7,900 438,144
__________
2,207,064
__________
Mortgage REITs - 3.57%
* American Home Mortgage Investment 15,600 520,572
* Gramercy Capital 19,500 510,120
JER Investors Trust 13,000 203,190
II KKR Financial 24,600 530,130
II Peoples Choice 47,300 260,150
* Saxon Capital 32,400 361,260
__________
2,385,422
__________
Office/Industrial REITs - 1.13%
* Duke Realty 22,300 756,862
__________
756,862
__________
Office REITs - 1.00%
* Brandywine Realty Trust 10,763 312,342
* Reckson Associates Realty 9,300 357,492
__________
669,834
__________
Shopping Center REITs - 0.35%
Cedar Shopping Centers 7,300 106,142
* Ramco-Gershenson Properties 5,000 130,000
__________
236,142
__________
Specialty REITs - 0.40%
* Entertainment Properties Trust 6,600 270,930
__________
270,930
__________
Telecommunications - 3.68%
AT&T 25,700 669,742
* Telefonos de Mexico ADR 19,000 376,010
Telstra 82,500 231,024
Verizon Communications 20,900 652,289
Vodafone Group 231,290 533,456
__________
2,462,521
__________
Utilities - 0.98%
+ Mirant 2,284 56,826
Progress Energy 14,300 601,172
__________
657,998
__________
Total Common Stock
(cost $43,999,710) 50,494,406
__________
_______________________________________________________________________________
Convertible Preferred Stock - 3.42%>
_______________________________________________________________________________
Banking, Finance & Insurance - 1.34%
Aspen Insurance 5.625% exercise
price $29.28, expiration date
12/31/49 3,400 164,050
Chubb 7.00% exercise price $35.70,
expiration date 8/16/06 4,100 145,591
~ Citigroup Funding 5.02% exercise
price $29.50, expiration date
9/27/08 7,000 224,420
E Trade Group 6.125% exercise price
$21.82, expiration date 11/18/08 3,500 110,250
* Lehman Brothers Holdings 6.25%
exercise price $54.24, expiration
date 10/15/07 9,250 250,906
_________
895,217
_________
Basic Materials - 0.29%
Huntsman 5.00% exercise price
$28.29, expiration date 2/16/08 4,600 192,625
_________
192,625
_________
Cable, Media & Publishing - 0.20%
*# Interpublic 5.25% 144A exercise price
$13.66, expiration date 12/31/49 140 131,425
_________
131,425
_________
Consumer Products - 0.26%
Newell Financial Trust I 5.25%
exercise price $50.69, expiration
date 12/1/27 4,030 175,809
_________
175,809
_________
Energy - 0.35%
* Chesapeake 4.50% exercise price
$44.17, expiration date 12/31/49 1,275 118,894
El Paso Energy Capital Trust 4.75%
exercise price $41.59, expiration
date 3/31/28 3,250 118,300
_________
237,194
_________
Food, Beverage & Tobacco - 0.28%
Constellation Brands 5.75% exercise
price $17.08, expiration date
9/1/06 5,200 188,500
_________
188,500
_________
Telecommunications - 0.11%
Lucent Technologies Capital Trust I
7.75% exercise price $4.84,
expiration date 3/15/17 70 70,761
_________
70,761
_________
4
<page>
Number Market Value
of Shares (U.S.$)
_______________________________________________________________________________
Convertible Preferred Stock (continued)
_______________________________________________________________________________
Utilities - 0.59%
Entergy 7.625% exercise price
$87.64, expiration date 2/17/09 3,500 $ 176,313
NRG Energy 5.75% exercise price
$60.45, expiration date 3/16/09 875 220,609
_________
396,922
_________
Total Convertible Preferred Stock
(cost $2,233,389) 2,288,453
_________
_______________________________________________________________________________
Preferred Stock - 3.20%>
_______________________________________________________________________________
Leisure, Lodging & Entertainment - 0.62%
* Red Lion Hotels 9.50% 15,700 414,166
_________
414,166
_________
Real Estate - 2.58%
Equity Inns Series B 8.75% 10,000 259,500
LaSalle Hotel Properties 10.25% 23,500 608,767
Ramco-Gershenson Properties 9.50% 11,500 294,975
SL Green Realty 7.625% 22,000 560,314
_________
1,723,556
_________
Total Preferred Stock (cost $2,067,500) 2,137,722
_________
_______________________________________________________________________________
Right - 0.01%
_______________________________________________________________________________
Arkema - Allotment Rights 2,890 10,259
_________
Total Right (cost $6,509) 10,259
_________
_______________________________________________________________________________
Warrant - 0.00%
_______________________________________________________________________________
+# Solutia 144A, exercise price $7.59,
expiration date 7/15/09 130 0
_________
Total Warrant (cost $11,059) 0
_________
Principal
Amount o
_______________________________________________________________________________
Agency Obligations - 0.23%>
_______________________________________________________________________________
Fannie Mae 6.375% 8/15/07 AUD 203,000 153,266
_________
Total Agency Obligations
(cost $155,146) 153,266
_________
_______________________________________________________________________________
Commercial Mortgage-Backed Securities - 0.12%>
_______________________________________________________________________________
# First Union National Bank
Commercial Mortgage Series
2001-C2 L 144A 6.46%
1/12/43 USD 85,000 84,472
_________
Total Commercial Mortgage-Backed
Securities (cost $86,272) 84,472
_________
_______________________________________________________________________________
Convertible Bonds - 5.65%>
_______________________________________________________________________________
Aerospace & Defense - 0.43%
# AAR 144A 1.75% 2/1/26 exercise
price $29.43, expiration date
2/1/26 90,000 90,788
EDO 4.00% 11/15/25
exercise price $34.19,
expiration date 11/15/25 USD 90,000 91,238
# L-3 Communications 144A
3.00% 8/1/35 exercise
price 102.31, expiration
date 8/1/35 110,000 107,249
_________
289,275
_________
Cable, Media & Publishing - 0.21%
# Playboy Enterprises 144A
3.00% 3/15/25 exercise
price $17.02, expiration
date 3/15/25 160,000 139,400
_________
139,400
_________
Computers & Technology - 0.83%
Hutchinson Technology
3.25% 1/15/26 exercise
price $36.43, expiration
date 1/15/26 120,000 109,200
# Informatica 144A 3.00%
3/15/26 exercise price
$20.00, expiration date
3/15/26 175,000 177,405
# Intel 144A 2.95% 12/15/35
exercise price $31.53,
expiration date 12/15/35 105,000 86,888
SanDisk 1.00% 5/15/13
exercise price $82.36,
expiration date 5/15/13 60,000 57,075
# Sybase 144A 1.75% 2/22/25
exercise price $25.22,
expiration date 2/22/25 125,000 122,813
_________
553,381
_________
Energy - 0.82%
Halliburton 3.125% 7/15/23
exercise price $37.65,
expiration date 7/15/23 100,000 202,125
Pride International 3.25%
5/1/33 exercise price
$25.70, expiration date
5/1/33 80,000 110,100
Schlumberger 2.125%
6/1/23 exercise price
$40.00, expiration date
6/1/23 140,000 233,800
_________
546,025
_________
Health Care & Pharmaceuticals - 1.01%
# Allergan 144A 1.50%
4/1/26 exercise price
$126.66, expiration date
4/1/26 150,000 142,688
(continues) 5
<page>
Statement of net assets
Delaware Investments Global Dividend and Income Fund, Inc.
May 31, 2006 (Unaudited)
Principal Market Value
Amount o (U.S.$)
_______________________________________________________________________________
Convertible Bonds (continued)
_______________________________________________________________________________
Health Care & Pharmaceuticals (continued)
# Amgen 144A 0.375%
2/1/13 exercise price
$79.48, expiration date
2/1/13 USD 60,000 $ 57,600
CV Therapeutics 3.25%
8/16/13 exercise price
$27.00, expiration date
8/16/13 45,000 41,400
Encysive Pharmaceuticals
2.50% 3/15/12 exercise
price $13.95, expiration
date 3/15/12 245,000 173,337
# Nektar Therapeutics
Convertible 144A 3.25%
9/28/12 exercise price
$21.52, expiration date
9/28/12 125,000 141,406
Teva Pharmaceutical Finance
0.25% 2/1/26 exercise
price $47.16, expiration
date 2/1/26 120,000 117,300
_________
673,731
_________
Leisure, Lodging & Entertainment - 0.25%
# Regal Entertainment Group
144A 3.75% 5/15/08
exercise price $14.97,
expiration date 5/15/08 130,000 168,350
_________
168,350
_________
Real Estate - 0.48%
MeriStar Hospitality 9.50%
4/1/10 exercise price
$10.18, expiration date
4/1/10 300,000 319,875
_________
319,875
_________
Retail - 0.67%
*{ Dick's Sporting Goods
1.606% 2/18/24 exercise
price $58.13, expiration
date 2/18/24 140,000 105,700
~ Lowe's Companies 0.861%
10/19/21 exercise price
$50.03, expiration date
10/19/21 95,000 103,550
# Saks 144A 2.00% 3/15/24
exercise price $14.92,
expiration date 3/15/24 125,000 144,219
# United Auto Group 144A
3.50% 4/1/26 exercise
price $23.69, expiration
date 4/1/26 90,000 96,750
_________
450,219
_________
Technology - 0.41%
# Mercury Interactive 144A
4.75% 7/1/07 exercise
price $111.25 expiration
date 7/1/07 275,000 274,656
_________
274,656
_________
Telecommunications - 0.14%
* Qwest Communications
International 3.50%
11/15/25 exercise price
$5.90, expiration date
11/15/25 70,000 95,288
_________
95,288
_________
Transportation - 0.07%
*# ExpressJet Holdings 144A
4.25% 8/1/23 exercise
price $18.20, expiration
date 8/1/23 50,000 45,188
_________
45,188
_________
Utilities - 0.33%
# CenterPoint Energy 144A
3.75% 5/15/23 exercise
price $11.44, expiration
date 5/15/23 200,000 224,000
_________
224,000
_________
Total Convertible Bonds
(cost $3,691,766) 3,779,388
_________
_______________________________________________________________________________
Corporate Bonds - 20.48%>
_______________________________________________________________________________
Banking - 0.14%
Western Financial Bank
9.625% 5/15/12 85,000 94,350
_________
94,350
_________
Basic Industry - 2.18%
Abitibi-Consolidated
6.95% 12/15/06 5,000 5,050
7.875% 8/1/09 50,000 49,375
* AK Steel 7.875% 2/15/09 85,000 84,788
BCP Caylux 9.625% 6/15/14 1,000 1,103
Bowater 9.50% 10/15/12 140,000 143,499
Chemtura 6.875% 6/1/16 65,000 63,375
Donohue Forest Products
7.625% 5/15/07 65,000 65,813
Georgia-Pacific
8.875% 5/15/31 15,000 15,450
9.50% 12/1/11 75,000 80,625
Gold Kist 10.25% 3/15/14 60,000 63,600
Huntsman International
10.125% 7/1/09 25,000 25,563
* Lyondell Chemical 10.50%
6/1/13 10,000 11,250
*# Nell AF Sarl 144A 8.375%
8/15/15 75,000 74,438
6
<page>
Principal Market Value
Amount o (U.S.$)
_______________________________________________________________________________
Corporate Bonds (continued)
_______________________________________________________________________________
Basic Industry (continued)
NewPage 10.00% 5/1/12 USD 50,000 $ 53,125
Norske Skog 8.625%
6/15/11 100,000 100,000
# Port Townsend Paper 144A
12.00% 4/15/11 100,000 83,000
Potlatch 13.00% 12/1/09 95,000 112,138
* Rhodia 8.875% 6/1/11 87,000 88,305
Smurfit Capital Funding
7.50% 11/20/25 55,000 51,150
*++ Solutia 6.72% 10/15/37 120,000 112,200
Tembec Industries 8.625%
6/30/09 215,000 121,474
Witco 6.875% 2/1/26 60,000 54,300
__________
1,459,621
__________
Brokerage - 0.48%
E Trade Financial 8.00%
6/15/11 120,000 124,800
LaBranche & Company
9.50% 5/15/09 90,000 96,075
11.00% 5/15/12 90,000 99,225
__________
320,100
__________
Capital Goods - 1.05%
Armor Holdings 8.25%
8/15/13 55,000 58,163
# Compression Polymer 144A
10.50% 7/1/13 30,000 31,350
* Graham Packaging 9.875%
10/15/14 65,000 66,625
Interface 10.375% 2/1/10 100,000 110,375
Interline Brands 11.50%
5/15/11 120,000 133,500
Intertape Polymer 8.50%
8/1/14 115,000 108,675
? Mueller Holdings 14.75%
4/15/14 60,000 50,700
# Panolam Industrial 144A
10.75% 10/1/13 55,000 54,450
Trimas 9.875% 6/15/12 95,000 91,200
__________
705,038
__________
Consumer Cyclical - 1.87%
* Accuride 8.50% 2/1/15 65,000 63,863
Carrols 9.00% 1/15/13 40,000 40,600
Ford Motor Credit 7.375%
10/28/09 75,000 69,132
* General Motors 8.375%
7/15/33 30,000 22,913
General Motors Acceptance
Corporation
6.875% 9/15/11 100,000 94,043
7.50% 12/1/06 NZD 354,000 219,841
*8.00% 11/1/31 USD 55,000 51,796
Landry's Restaurant 7.50%
12/15/14 75,000 70,688
* Mandalay Resort Group
9.50% 8/1/08 90,000 96,300
* Metaldyne 10.00% 11/1/13 120,000 115,799
# Neiman Marcus 144A
9.00% 10/15/15 55,000 57,544
*# NPC International 144A
9.50% 5/1/14 85,000 85,425
* O'Charleys 9.00% 11/1/13 50,000 51,375
# Uno Restaurant 144A
10.00% 2/15/11 45,000 36,450
* Visteon
7.00% 3/10/14 20,000 16,650
8.25% 8/1/10 60,000 56,100
*Warnaco 8.875% 6/15/13 100,000 103,500
__________
1,252,019
__________
Consumer Non-Cyclical - 2.11%
# Angiotech Pharmaceuticals
144A 7.75% 4/1/14 65,000 65,163
Biovail 7.875% 4/1/10 170,000 172,974
Constellation Brands
8.125% 1/15/12 165,000 170,363
Cott Beverages 8.00%
12/15/11 110,000 110,825
* Del Laboratories 8.00%
2/1/12 35,000 28,875
Doane Pet Care 10.625%
11/15/15 50,000 62,417
* Dole Food 8.875% 3/15/11 75,000 73,781
# iPayment 144A 9.75%
5/15/14 50,000 50,375
# Le-Natures 144A 10.00%
6/15/13 65,000 68,494
Marsh Supermarket 8.875%
8/1/07 10,000 9,925
National Beef Packing
10.50% 8/1/11 80,000 80,800
Pilgrim's Pride 9.625%
9/15/11 90,000 94,725
* Pinnacle Foods 8.25%
12/1/13 70,000 69,125
Playtex Products 9.375%
6/1/11 100,000 104,750
RJ Reynolds Tobacco
Holdings 7.875%
5/15/09 25,000 25,875
True Temper Sports 8.375%
9/15/11 95,000 89,300
* Warner Chilcott 8.75%
2/1/15 130,000 130,325
__________
1,408,092
__________
(continues) 7
<page>
Statement of net assets
Delaware Investments Global Dividend and Income Fund, Inc.
May 31, 2006 (Unaudited)
Principal Market Value
Amount o (U.S.$)
_______________________________________________________________________________
Corporate Bonds (continued)
_______________________________________________________________________________
Energy - 1.10%
# Basic Energy Services 144A
7.125% 4/15/16 USD 25,000 $ 24,375
* Bluewater Finance 10.25%
2/15/12 55,000 57,200
*# Brigham Exploration 144A
9.625% 5/1/14 25,000 24,906
Compton Petroleum Finance
7.625% 12/1/13 40,000 39,200
# Copano Energy 144A
8.125% 3/1/16 25,000 25,500
El Paso Natural Gas 7.625%
8/1/10 45,000 46,688
El Paso Production Holding
7.75% 6/1/13 100,000 102,500
# Hilcorp Energy I 144A
7.75% 11/1/15 30,000 29,700
10.50% 9/1/10 22,000 24,035
Inergy Finance
6.875% 12/15/14 50,000 47,375
8.25% 3/1/16 20,000 20,600
Quicksilver Resources
7.125% 4/1/16 50,000 48,000
~ Secunda International
13.068% 9/1/12 55,000 58,025
Tennessee Gas Pipeline
8.375% 6/15/32 70,000 76,961
# VeraSun Energy 144A
9.875% 12/15/12 60,000 64,800
* Whiting Petroleum 7.25%
5/1/13 50,000 49,000
__________
738,865
__________
Finance & Investments - 1.49%
ERAP 3.75% 4/25/10 EUR 100,000 128,484
FINOVA Group 7.50%
11/15/09 USD 217,300 71,166
# Hughes Network Systems
144A 9.50% 4/15/14 105,000 106,575
Residential Capital
5.125% 5/17/12 EUR 170,000 217,552
6.375% 5/17/13 GBP 80,000 150,411
SLM 6.50% 6/15/10 NZD 510,000 319,670
__________
993,858
__________
Media - 2.48%
} Adelphia Communications
8.125% 7/15/06 USD 90,000 41,850
# Affinion Group 144A
11.50% 10/15/15 35,000 35,788
* CCH I 11.00% 10/1/15 92,000 79,580
*++ Century Communications
9.50% 9/1/06 105,000 97,125
* Cenveo 9.625% 3/15/12 65,000 69,591
# Charter Communications
144A 5.875% 11/16/09 40,000 29,150
Charter Communications
Holdings
11.125% 1/15/11 55,000 34,925
? 13.50% 1/15/11 170,000 111,350
~# Cleveland Unlimited 144A
13.16% 12/15/10 40,000 42,600
* CSC Holdings 10.50%
5/15/16 125,000 131,875
Dex Media East 12.125%
11/15/12 55,000 62,288
* Insight Midwest 10.50%
11/1/10 185,000 194,943
* Lodgenet Entertainment
9.50% 6/15/13 140,000 150,499
* Mediacom Capital 9.50%
1/15/13 135,000 136,350
# RH Donnelley 144A 8.875%
1/15/16 60,000 60,600
Sheridan Group 10.25%
8/15/11 40,000 41,000
* Sirius Satellite 9.625%
8/1/13 20,000 19,000
* Vertis 10.875% 6/15/09 50,000 49,000
* Warner Music Group
7.375% 4/15/14 120,000 119,400
*# XM Satellite Radio 144A
9.75% 5/1/14 160,000 149,600
__________
1,656,514
__________
Real Estate - 0.40%
American Real Estate
Partners 8.125% 6/1/12 100,000 102,500
BF Saul REIT 7.50% 3/1/14 110,000 112,750
# Rouse 144A 6.75% 5/1/13 30,000 29,850
Tanger Properties 9.125%
2/15/08 20,000 20,968
__________
266,068
__________
Services Cyclical - 2.51%
Adesa 7.625% 6/15/12 105,000 106,050
American Airlines 7.379%
5/23/16 28,051 25,647
Brickman Group 11.75%
12/15/09 130,000 141,374
*# CCM Merger 144A 8.00%
8/1/13 85,000 82,025
Corrections Corporation of
America 7.50% 5/1/11 100,000 101,500
FTI Consulting 7.625%
6/15/13 90,000 92,925
*# Galaxy Entertainment
Finance 144A 9.875%
12/15/12 100,000 105,000
8
<page>
Principal Market Value
Amount o (U.S.$)
_______________________________________________________________________________
Corporate Bonds (continued)
_______________________________________________________________________________
Services Cyclical (continued)
* Gaylord Entertainment
8.00% 11/15/13 USD 65,000 $ 66,625
? H-Lines Finance Holdings
11.00% 4/1/13 138,000 117,990
# Hertz 144A
8.875% 1/1/14 40,000 41,800
* 10.50% 1/1/16 15,000 16,313
Horizon Lines 9.00%
11/1/12 44,000 46,200
Kansas City Southern
Railway 9.50% 10/1/08 175,000 184,624
# Knowledge Learning 144A
7.75% 2/1/15 65,000 61,994
OMI 7.625% 12/1/13 130,000 130,000
Royal Caribbean Cruises
7.25% 3/15/18 25,000 25,092
Seabulk International 9.50%
8/15/13 50,000 55,750
Stena 9.625% 12/1/12 70,000 75,425
? Town Sports International
11.00% 2/1/14 95,000 76,000
Wheeling Island Gaming
10.125% 12/15/09 120,000 125,400
___________
1,677,734
___________
Services Non-cyclical - 1.00%
Aleris International 9.00%
11/15/14 80,000 83,400
Allied Waste North America
9.25% 9/1/12 45,000 48,206
Casella Waste Systems
9.75% 2/1/13 105,000 111,431
# CRC Health 144A 10.75%
2/1/16 105,000 108,675
* Geo Subordinate 11.00%
5/15/12 95,000 96,425
* US Oncology 10.75%
8/15/14 76,000 84,455
? Vanguard Health 11.25%
10/1/15 180,000 133,201
___________
665,793
___________
Technology & Electronics - 0.37%
* Magnachip Semiconductor
8.00% 12/15/14 130,000 113,750
# Sensata Technologies BV
144A 8.00% 5/1/14 10,000 9,900
*# Sungard Data Systems 144A
10.25% 8/15/15 120,000 126,000
___________
249,650
___________
Telecommunications - 2.12%
* American Cellular 10.00%
8/1/11 60,000 64,725
* American Tower 7.125%
10/15/12 80,000 82,200
* Cincinnati Bell 8.375%
1/15/14 120,000 121,800
? Inmarsat Finance 10.375%
11/15/12 155,000 132,912
iPCS 11.50% 5/1/12 115,000 131,675
~ IWO Holdings 8.818%
1/15/12 15,000 15,638
# Nordic Telephone Company
Holdings 144A 8.875%
5/1/16 75,000 77,813
PanAmSat 9.00% 8/15/14 60,000 62,550
~ Qwest 8.16% 6/15/13 65,000 70,444
Rural Cellular 9.875%
2/1/10 75,000 79,313
*~# Rural Cellular 144A
10.899% 11/1/12 50,000 52,375
SunCom Wireless 9.375%
2/1/11 315,000 233,099
# Telcordia Technologies 144A
10.00% 3/15/13 145,000 137,387
~ US LEC 13.62% 10/1/09 45,000 48,375
*# Wind Acquisition 144A
10.75% 12/1/15 100,000 108,250
___________
1,418,556
___________
Utilities - 1.18%
++# Calpine 144A 9.90%
7/15/07 68,425 66,885
Elwood Energy 8.159%
7/5/26 104,031 112,207
Hydro Quebec 10.50%
10/15/21 CAD 55,000 78,768
Midwest Generation
8.30% 7/2/09 USD 100,000 102,500
8.75% 5/1/34 90,000 96,750
Mirant Americas 8.30%
5/1/11 125,000 125,625
NRG Energy 7.25% 2/1/14 125,000 125,313
Orion Power Holdings
12.00% 5/1/10 70,000 79,275
=++# USGen New England 144A
7.459% 1/2/15 50,000 360
___________
787,683
___________
Total Corporate Bonds
(cost $13,803,567) 13,693,941
___________
(continues) 9
<page>
Statement of net assets
Delaware Investments Global Dividend and Income Fund, Inc.
May 31, 2006 (Unaudited)
Principal Market Value
Amount o (U.S.$)
_______________________________________________________________________________
Foreign Agencies - 2.66%
_______________________________________________________________________________
Austria - 0.33%
Oesterreichische
Kontrollbank 1.80%
3/22/10 JPY 24,000,000 $ 218,409
__________
218,409
__________
Germany - 1.87%
KFW
2.05% 2/16/26 JPY 27,000,000 236,759
4.75% 12/7/10 GBP 170,000 315,591
4.95% 10/14/14 CAD 85,000 78,088
6.50% 11/15/11 NZD 249,000 157,305
Rentenbank 1.375%
4/25/13 JPY 53,000,000 462,883
__________
1,250,626
__________
United States - 0.46%
KFW International Finance
1.75% 3/23/10 JPY 34,000,000 308,853
__________
308,853
__________
Total Foreign Agencies
(cost $1,807,665) 1,777,888
__________
_______________________________________________________________________________
Regional Agencies - 0.98%
_______________________________________________________________________________
Australia - 0.98%
New South Wales Treasury
6.00% 5/1/12 AUD 255,000 192,131
Queensland Treasury
5.50% 5/14/10 AUD 416,000 309,538
6.00% 7/14/09 AUD 200,000 151,424
__________
Total Regional Agencies
(cost $665,777) 653,093
__________
_______________________________________________________________________________
Regional Authority - 0.47%
_______________________________________________________________________________
Canada - 0.47%
Ontario Province
4.50% 3/8/15 CAD 89,000 79,413
5.375% 12/2/12 CAD 81,000 76,775
Quebec Province 5.00%
12/1/15 CAD 172,000 157,480
__________
Total Regional Authority
(cost $304,521) 313,668
__________
_______________________________________________________________________________
Sovereign Agencies - 1.59%
_______________________________________________________________________________
France - 0.92%
Caisse d'Amortissement de
la Dette Sociale 3.625%
4/25/16 EUR 500,000 616,883
__________
616,883
__________
Japan - 0.67%
Development Bank of Japan
1.70% 9/20/22 JPY 21,000,000 176,671
Japan Finance Corporation
for Municipal Enterprises
2.00% 5/9/16 JPY 30,000,000 270,833
__________
447,504
__________
Total Sovereign Agencies
(cost $1,061,575) 1,064,387
__________
_______________________________________________________________________________
Sovereign Debt - 10.07%
_______________________________________________________________________________
Austria - 1.58%
# Republic of Austria 144A
4.00% 9/15/16 EUR 102,000 130,764
Republic of Austria
5.25% 1/4/11 EUR 231,000 315,318
9.00% 9/15/06 ISK 44,300,000 609,943
__________
1,056,025
__________
Czechoslovakia - 0.23%
Slovak Republic 4.00%
3/26/21 EUR 125,000 153,460
__________
153,460
__________
France - 1.54%
France Government O.A.T
3.50% 4/25/15 EUR 250,000 309,432
France Government O.A.T.
4.00% 4/25/55 EUR 192,000 231,852
French Treasury Note 2.75%
3/12/08 EUR 385,000 488,531
__________
1,029,815
__________
Germany - 2.13%
Deutschland Republic
4.75% 7/4/08 EUR 724,000 952,262
6.25% 1/4/24 EUR 294,000 472,054
__________
1,424,316
__________
Korea - 0.69%
Korea Government 4.83%
5/10/08 KRW 436,000,000 462,146
__________
462,146
__________
Malaysia - 0.45%
Malaysian Government
3.756% 4/28/11 MYR 565,000 150,450
7.00% 3/15/09 MYR 509,000 149,031
__________
299,481
__________
Netherlands - 0.34%
Netherlands Government
5.75% 2/15/07 EUR 176,000 229,505
__________
229,505
__________
Norway - 0.47%
Norwegian Government
6.00% 5/16/11 NOK 875,000 156,594
6.50% 5/15/13 NOK 827,000 155,213
__________
311,807
__________
Poland - 0.46%
Poland Government 6.00%
11/24/10 PLN 905,000 305,911
__________
305,911
__________
10
<page>
Principal Market Value
Amount o (U.S.$)
_______________________________________________________________________________
Sovereign Debt (continued)
_______________________________________________________________________________
Sweden - 1.15%
Sweden Government
1.00% 4/1/12 SEK 2,325,000 $ 311,084
5.00% 12/1/20 SEK 1,020,000 157,317
* 5.50% 10/8/12 SEK 2,000,000 304,350
__________
772,751
__________
United Kingdom - 1.03%
U.K. Treasury
4.75% 9/7/15 GBP 144,500 272,806
5.00% 3/7/12 GBP 27,000 51,393
8.00% 6/7/21 GBP 84,000 215,259
9.00% 7/12/11 GBP 67,000 149,611
__________
689,069
__________
Total Sovereign Debt
(cost $6,779,758) 6,734,286
__________
_______________________________________________________________________________
Supranational Banks - 4.52%
_______________________________________________________________________________
Asia Development Bank
0.50% 10/9/12 AUD 255,000 136,716
European Investment Bank
1.40% 6/20/17 JPY 55,300,000 468,397
1.90% 1/26/26 JPY 27,600,000 235,812
3.625% 10/15/11 EUR 243,000 308,583
4.00% 10/15/37 EUR 462,000 547,836
4.25% 12/7/10 GBP 173,000 314,772
4.375% 7/8/15 GBP 168,000 301,886
Inter-American Development
Bank 1.90% 7/8/09 JPY 51,000,000 465,088
^ International Bank for
Reconstruction &
Development 7.074%
8/20/07 NZD 412,000 240,974
__________
Total Supranational Banks
(cost $3,035,033) 3,020,064
__________
_______________________________________________________________________________
Currency Options Purchased - 0.00%
_______________________________________________________________________________
Put USD 690,000 Call JPY
75,900,000 expiration
date 08/11/06 2,363
__________
Total Currency Options
Purchased (cost $5,813) 2,363
__________
_______________________________________________________________________________
Repurchase Agreements - 4.92%
_______________________________________________________________________________
With BNP Paribas 4.88%
6/1/06 (dated 5/31/06,
to be repurchased
at $2,068,580,
collateralized by
$772,600 U.S. Treasury
Notes 2.375% due
8/31/06, market value
$772,315, $598,800
U.S. Treasury Notes
2.75% due 7/31/06,
market value $602,152,
$458,400 U.S. Treasury
Notes 2.875% due
11/30/06, market value
$453,456 and $264,500
U.S. Treasury Notes
6.50% due 2/15/10,
market value $283,053) USD 2,068,300 2,068,300
With Cantor Fitzgerald
4.88% 6/1/06
(dated 5/31/06,
to be repurchased
at $1,220,865,
collateralized by
$530,700 U.S. Treasury
Notes 2.50% due
9/30/06, market value
$528,839, $530,700 U.S.
Treasury Notes 3.50%
due 11/15/06, market
value $528,196 and
$179,800 U.S. Treasury
Notes 6.00% due
8/15/09, market value
$188,312) 1,220,700 1,220,700
___________
Total Repurchase Agreements
(cost $3,289,000) 3,289,000
___________
Total Market Value of
Securities Before Securities
Lending Collateral - 133.83%
(cost $83,004,060) 89,496,655
___________
_______________________________________________________________________________
Securities Lending Collateral** - 23.25%
_______________________________________________________________________________
Short-Term Investments
Fixed Rate Notes - 6.28%
Calyon 5.05% 6/19/06 520,398 520,398
Citigroup Global Markets
5.10% 6/1/06 2,436,817 2,436,817
(continues) 11
<page>
Statement of net assets
Delaware Investments Global Dividend and Income Fund, Inc.
May 31, 2006 (Unaudited)
Principal Market Value
Amount o (U.S.$)
_______________________________________________________________________________
Securities Lending Collateral** (continued)
_______________________________________________________________________________
Fixed Rate Notes (continued)
Deutsche Bank London
5.00% 6/29/06 USD 600,459 $ 600,459
Washington Mutual Grand
5.00% 6/30/06 640,489 640,489
____________
4,198,163
____________
~ Variable Rate Notes - 16.97%
American Honda Finance
5.07% 2/21/07 360,275 360,275
ANZ National 5.05% 7/2/07 80,061 80,061
Australia New Zealand
5.06% 7/2/07 400,306 400,306
Bank of America 5.07%
2/23/07 520,397 520,397
Bank of New York 5.07%
7/2/07 320,245 320,245
Barclays New York 5.06%
5/18/07 520,397 520,397
Bayerische Landesbank
5.10% 8/25/06 400,306 400,306
Bear Stearns 5.13%
10/30/06 480,367 480,367
BNP Paribas 5.14% 7/2/07 400,306 400,306
Canadian Imperial Bank
5.06% 5/29/07 200,153 200,153
Canadian Imperial Bank
5.07% 11/22/06 400,306 400,306
CDC Financial Products
5.16% 6/30/06 520,397 520,397
Citigroup Global Markets
5.13% 6/7/06 520,397 520,397
Commonwealth Bank
5.05% 7/2/07 400,306 400,306
Goldman Sachs 5.20%
5/31/07 520,398 520,398
Manufacturers & Traders
5.07% 9/26/06 400,304 400,273
Marshall & Ilsley Bank
5.06% 7/2/07 440,336 440,336
Merrill Lynch Mortgage
Capital 5.16% 6/7/06 360,275 360,275
Morgan Stanley 5.24%
5/31/07 496,379 496,379
National Australia Bank
5.04% 3/7/07 496,379 496,379
National City Bank 5.07%
3/2/07 480,412 480,546
National Rural Utilities
5.07% 7/2/07 632,483 632,483
Nordea Bank New York
5.06% 5/16/07 200,152 200,143
Nordea Bank Norge 5.06%
7/2/07 400,306 400,306
Royal Bank of Scotland
5.07% 7/2/07 400,306 400,306
Societe Generale 4.99%
7/2/07 200,153 200,153
Toyota Motor Credit 5.05%
6/23/06 400,307 400,309
Wells Fargo 5.07% 7/2/07 400,306 400,306
____________
11,352,811
____________
Total Securities Lending Collateral
(cost $15,550,974) 15,550,974
____________
Total Market Value of Securities - 157.08%
(cost $98,555,034) 105,047,629!
Obligation to Return Securities Lending
Collateral** - (23.25%) (15,550,974)
Borrowing Under Line of Credit - (34.39%) (23,000,000)
Receivables and Other Assets Net of
Liabilities - 0.56% 378,144
____________
Net Assets Applicable to 5,463,746 Shares
Outstanding; Equivalent to $12.24 per
Share - 100.00% $66,874,799
____________
Components of Net Assets at May 31, 2006:
Common stock, $0.01 par value, 500,000,000
shares authorized to the Fund $58,693,534
Undistributed net investment income 16,577
Accumulated net realized gain on investments 1,695,677
Net unrealized appreciation of investments and
foreign currencies 6,469,011
____________
Total net assets $66,874,799
____________
o 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
KRW - South Korean Won
MYR - Malaysian Ringgit
NOK - Norwegian Kroner
NZD - New Zealand Dollar
PLN - Polish Zloty
SEK - Swedish Krona
USD - United States Dollar
# Security exempt from registration under Rule 144A of the Securities Act of
1933, as amended. At May 31, 2006, the aggregate amount of Rule 144A
securities equaled $4,728,840, which represented 7.07% of the Fund's net
assets. See Note 9 in "Notes to Financial Statements."
II Restricted Security. Investment in a security not registered under the
Securities Act of 1933, as amended. This security has certain restrictions
on resale which may limit its liquidity. At May 31, 2006, the aggregate
amount of the restricted securities equaled $904,370 or 1.35% of the
Fund's net assets. See Note 9 in "Notes to Financial Statements."
* Fully or partially on loan.
12
<page>
** See Note 8 in "Notes to Financial Statements."
! Includes $14,898,604 of securities loaned.
~ Variable rate security. The interest rate shown is the rate as of May 31,
2006.
+ Non-income producing security for the period ended May 31, 2006.
++ 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.
{ Step coupon bond. Coupon increases/decreases periodically based on a
predetermined schedule. Stated interest rate in effect at May 31, 2006.
@ Illiquid security. At May 31, 2006, the aggregate amount of illiquid
securities equaled $256, which represented 0.00% of the Fund's net assets.
See Note 9 in "Notes to Financial Statements."
} Security is currently in default. The issue has missed the maturity date.
Bankruptcy proceedings are in process to determine distribution of assets.
The date listed is the estimate of when proceedings will be finalized.
> Securities have been classified by type of business. Classification by
country of origin has been presented on pages 1 and 2 in "Sector and Country
Allocation."
^ 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. At May 31, 2006, the aggregate amount of fair valued securities
equaled $616, which represented 0.00% of the Fund's net assets. See Note 1
in "Notes to Financial Statements."
Summary of Abbreviations:
ADR - American Depositary Receipt
O.A.T. - Obligation Assimilable au Tresor (Treasury Obligation)
REIT - Real Estate Investment Trust
The following foreign currency exchange contracts and forward foreign
cross-currency exchange contracts were outstanding at May 31, 2006:
Foreign Currency Exchange Contracts and Forward Foreign Cross-Currency Exchange
Contracts(1)
Unrealized
Contracts to Settlement Appreciation
Receive In Exchange For Date (Depreciation)
______________ _____________________ _____________ ________________
108,146 AUD USD (81,650) 6/1/06 $ (265)
38,882 EUR CAD (56,000) 6/26/06 (958)
128,254 EUR PLN (506,061) 6/26/06 (27)
163,626 EUR ISK (18,626,080) 9/15/06 (43,381)
208,845 EUR SEK (1,937,000) 6/26/06 (510)
240,453 EUR NOK (1,867,000) 6/26/06 1,157
830,211 EUR GBP (572,000) 6/26/06 (4,188)
5,375 GBP USD (10,131) 6/1/06 (80)
101,323,442 JPY NZD (1,426,100) 6/26/06 (1,528)
105,883,229 JPY AUD (1,258,900) 6/26/06 (2,584)
174,828,282 JPY EUR (1,209,000) 6/26/06 7,227
_________
$(45,137)
_________
(1)See Note 7 in "Notes to Financial Statements."
See accompanying notes.
13
<page>
Statement of operations
Delaware Investments Global Dividend and Income Fund, Inc.
Six Months Ended May 31, 2006 (Unaudited)
Investment Income:
Dividends $807,598
Interest 918,977
Securities lending income 19,037
Foreign tax withheld (26,793) $1,718,819
________ __________
Expenses:
Management fees 315,384
Legal and professional fees 25,362
Reports to shareholders 23,671
Transfer agent fees 21,656
Accounting and administration expenses 17,975
Custodian fees 16,195
NYSE fees 12,499
Pricing fees 7,230
Taxes (other than taxes on income) 2,835
Directors' fees 1,987
Insurance fees 1,344
Other 6,040
________
Total operating expenses (before interest expense) 452,178
Interest expense 585,586
__________
Total expenses 1,037,764
__________
Net Investment Income 681,055
__________
Net Realized and Unrealized Gain on Investments and Foreign Currencies:
Net realized gain on:
Investments 3,489,508
Foreign currencies 102,281
__________
Net realized gain 3,591,789
Net change in unrealized appreciation/depreciation of investments and foreign currencies 2,158,158
__________
Net Realized and Unrealized Gain on Investments and Foreign Currencies 5,749,947
__________
Net Increase in Net Assets Resulting from Operations $6,431,002
__________
See accompanying notes
14
<page>
Statements of changes in net assets
Delaware Investments Global Dividend and Income Fund, Inc.
Six Months
Ended Year
5/31/06 Ended
(Unaudited) 11/30/05
Increase (Decrease) in Net Assets from Operations:
Net investment income $ 681,055 $ 2,218,197
Net realized gain on investments and foreign currencies 3,591,789 14,865,212
Net change in unrealized appreciation/depreciation of investments and foreign currencies 2,158,158 (13,767,017)
___________ ____________
Net increase in net assets resulting from operations 6,431,002 3,316,392
__________ ____________
Dividends and Distributions to Shareholders from (See Note 4):
Net investment income (2,311,165) (2,295,845)
Net realized gains (9,326,614) (3,241,579)
___________ ____________
(11,637,779) (5,537,424)
___________ ____________
Capital Share Transactions:
Cost of shares repurchased (see Note 5) - (7,018,700)
___________ ____________
- (7,018,700)
___________ ____________
Net Decrease in Net Assets (5,206,777) (9,239,732)
Net Assets:
Beginning of period 72,081,576 81,321,308
___________ ____________
End of period (including undistributed net investment income of $16,577 and $232,005, respectively) $66,874,799 $ 72,081,576
___________ ____________
See accompanying notes
15
<page>
Statement of cash flows
Delaware Investments Global Dividend and Income Fund, Inc.
Six Months Ended May 31, 2006 (Unaudited)
Net Cash (Including Foreign Currency) Provided by Operating Activities:
Net increase in net assets resulting from operations $ 6,431,002
___________
Adjustments to reconcile net increase in net assets from operations to cash provided by operating activities
Amortization of premium and discount on investments 60,382
Net proceeds from investment transactions 10,779,768
Net realized gain on investment transactions (3,489,508)
Net realized gain on foreign currencies (102,281)
Net change in unrealized appreciation/depreciation of investments and foreign currencies (2,158,158)
Decrease in receivable for investments sold 657,780
Decrease in interest and dividends receivable and other assets 111,208
Decrease in payable for investments purchased (761,494)
Increase in interest payable 18,451
Decrease in accrued expenses and other liabilities (23,786)
___________
Total adjustments 5,092,362
___________
Net cash provided by operating activities 11,523,364
___________
Cash flows used for financing activities:
Cash dividends and distributions paid (11,637,779)
___________
Net cash used for financing activities (11,637,779)
___________
Effect of exchange rates on cash 219,901
___________
Net increase in cash 105,486
Cash at beginning of period 60,742
___________
Cash at end of period $ 166,228
___________
Cash paid for interest $ 567,135
___________
See accompanying notes
16
<page>
Financial highlights
Delaware Investments Global Dividend and Income Fund, Inc.
Selected data for each share of the Fund outstanding throughout each period were
as follows:
Six Months
Ended Year Ended
5/31/06(1) ____________________________________________________
(Unaudited) 11/30/05 11/30/04 11/30/03 11/30/02(2) 11/30/01
______________________________________________________________________________________________________________________________
Net asset value, beginning of period $13.190 $13.590 $11.980 $9.940 $11.170 $11.770
Income (loss) from investment operations:
Net investment income(3) 0.125 0.384 0.416 0.554 0.499 0.620
Net realized and unrealized gain (loss) on
investments and foreign
currencies 1.055 0.176 2.154 2.570 (0.260) 0.280
_______ _______ _______ _______ _______ _______
Total from investment operations 1.180 0.560 2.570 3.124 0.239 0.900
_______ _______ _______ _______ _______ _______
Less dividends and distributions from:
Net investment income (0.386) (0.398) (0.815) (0.918) (0.365) (0.195)
Net realized gain on investments (1.744) (0.562) (0.145) - - (0.084)
Return of capital - - - (0.166) (1.104) (1.221)
_______ _______ _______ _______ _______ _______
Total dividends and distributions (2.130) (0.960) (0.960) (1.084) (1.469) (1.500)
_______ _______ _______ _______ _______ _______
Net asset value, end of period $12.240 $13.190 $13.590 $11.980 $9.940 $11.170
_______ _______ _______ _______ _______ _______
Market value, end of period $12.380 $13.400 $12.300 $11.900 $10.400 $12.400
_______ _______ _______ _______ _______ _______
Total return based on:(4)
Market value 7.58% 17.22% 12.01% 25.92% (5.49%) 34.52%
Net asset value 8.05% 4.43% 22.92% 32.63% 0.28% 6.91%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $66,875 $72,082 $81,321 $71,693 $59,523 $66,870
Ratio of expenses to average net assets 3.10% 2.59% 1.92% 2.04% 2.26% 3.31%
Ratio of expenses to adjusted average net
assets (before interest
expense)(5) 1.01% 1.13% 0.98% 1.08% 1.06% 1.10%
Ratio of interest expense to adjusted average
net assets(5) 1.30% 0.87% 0.46% 0.46% 0.64% 1.35%
Ratio of net investment income to average net assets 2.04% 2.84% 3.31% 5.14% 4.69% 5.18%
Ratio of net investment income to adjusted average
net assets(5) 1.49% 2.19% 2.48% 3.88% 3.53% 3.84%
Portfolio turnover 85% 121% 78% 99% 69% 47%
Leverage Analysis:
Debt outstanding at end of period at par (000 omitted) $23,000 $23,000 $25,000 $21,000 $21,000 $ 25,000
Average daily balance of debt outstanding (000 omitted) $23,000 $24,195 $24,410 $21,000 $21,603 $ 25,000
Average daily balance of shares outstanding (000 omitted) 5,464 5,777 5,986 5,986 5,986 5,986
Average debt per share $4.21 $4.19 $4.08 $3.51 $3.61 $ 4.18
Asset coverage per $1,000 of debt outstanding at
end of period $ 3,908 $ 4,134 $ 4,253 $ 4,414 $ 3,834 $ 3,675
______________________________________________________________________________________________________________________________
(1)Ratios and portfolio turnover have been annualized and total return has not been annualized.
(2)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.
(3)The average shares outstanding method has been applied for per share information.
(4)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.
(5)Adjusted average net assets excludes debt outstanding.
See accompanying notes
17
<page>
Notes to financial statements
Delaware Investments Global Dividend and Income Fund, Inc.
May 31, 2006 (Unaudited)
Delaware Investments Global Dividend and Income Fund, Inc. (the "Fund") is
organized as a Maryland corporation and is a diversified closed-end management
investment company under the Investment Company Act of 1940, as amended. The
Fund's shares trade on the New York Stock Exchange under the symbol DGF.
The investment objective of the Fund is to seek high current income. Capital
appreciation is a secondary objective.
1. Significant Accounting Policies
The following accounting policies are in accordance with 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.
Other 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 the 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 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. 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. 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 distribution by the
issuer. 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.
18
<page>
1. Significant Accounting Policies (continued)
Withholding taxes on foreign dividends have been recorded in accordance with the
Fund's understanding of the applicable country's tax rules and rates.
Subject to seeking best execution, 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. Such commission rebates are included in realized
gain on securities in the accompanying financial statements and totaled $381 for
the six months ended May 31, 2006. In general, best execution refers to many
factors, including the price paid or received for a security, the commission
charged, the promptness and reliability of execution, the confidentiality and
placement accorded the order, and other factors affecting the overall benefit
obtained by the Fund on the transaction.
DMC, as defined below, and its affiliates have previously and may in the future
act as an investment advisor to mutual funds or separate accounts affiliated
with the administrator of the commission recapture program described above. In
addition, affiliates of the administrator act as consultants in helping
institutional clients choose investment advisors and may also participate in
other types of businesses and provide other services in the investment
management industry.
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. The Fund pays DSC a monthly fee computed at the
annual rate of 0.04% of the Fund's adjusted average weekly net assets for
accounting and administration services
At May 31, 2006, the Fund had liabilities payable to affiliates as follows:
Investment management fee payable to DMC $53,239
Accounting and administration fees and other expenses
payable to DSC 10,876
Other expenses payable to DMC and affiliates* 10,611
*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, including internal legal services provided to the Fund
by DMC employees. For the six months ended May 31, 2006, the Fund was charged
$1,394 for internal legal services provided by DMC.
Certain officers of DMC and DSC are officers and/or directors of the Fund. These
officers and trustees are paid no compensation by the Fund.
During the six months ended May 31, 2006, Babak Zenouzi was appointed
co-portfolio manager of the Fund. Mr. Zenouzi assumed primary responsibility for
managing the REIT and convertible securities holdings for the Fund, and consults
regularly with Damon J. Andres in this capacity. Mr. Zenouzi works with Mr.
Andres, D. Tysen Nutt, Jr., Jordan L. Irving, Anthony A. Lombardi, Robert A.
Vogel, Jr., Zoe Neale, Edward Gray, Philip R. Perkins and Timothy L. Rabe in
making day-to-day decisions for the Fund.
3. Investments
For the six months ended May 31 2006, the Fund made purchases of $36,222,569 and
sales of $40,965,635 of investment securities other than U.S. government
securities and short-term investments. For the six months ended May 31, 2006,
the Fund made purchases of $988,475 and sales of $2,089,538 of long-term U.S.
government securities.
At May 31, 2006, the cost of investments for federal income tax purposes has
been estimated since the final tax characteristics cannot be determined until
fiscal year end. At May 31, 2006, the cost of investments was $98,799,097.
At May 31, 2006, the net unrealized appreciation was $6,248,532, of which
$8,585,540 related to unrealized appreciation of investments and $2,337,008
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 for federal income tax purposes. The tax character of
dividends and distributions paid during the six months ended May 31, 2006 and
the year ended November 30, 2005 was as follows:
Six Months Year
Ended Ended
5/31/06* 11/30/05
____________ __________
Ordinary income $ 2,234,871 $2,295,845
Long-term capital gain 9,402,908 3,241,579
____________ __________
Total $ 11,637,779 $5,537,424
____________ __________
*Tax information for the period ended May 31, 2006 is an estimate and the tax
character of dividends and distributions may be redesignated at fiscal year
end.
The components of net assets are estimated since final tax characteristics
cannot be determined until fiscal year end. As of May 31, 2006, the estimated
components of net assets on a tax basis were as follows:
Shares of beneficial interest $58,693,534
Six month period realized gain 1,911,180
Unrealized appreciation of investments
and foreign currencies 6,270,085
___________
Net assets $66,874,799
___________
(continues) 19
<page>
Notes to financial statements
Delaware Investments Global Dividend and Income Fund, Inc.
May 31, 2006 (Unaudited)
4. Dividend and Distribution Information (continued)
The differences between book basis and tax basis components of net assets are
primarily attributable to tax deferral of losses on wash sales, mark-to-market
on futures contracts and 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 gain (loss) on foreign currency transactions, REIT dividend
reclassification and market discounts and premiums on certain debt instruments.
Results of operations and net assets were not affected by these
reclassifications. For the six months ended May 31, 2006, the Fund recorded an
estimate of these differences since the final tax characteristics cannot be
determined until fiscal year end.
Undistributed net investment income $ 1,641,584
Accumulated net realized gain (loss) (1,641,584)
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
For the six months ended May 31, 2006, the Fund did not have any transactions in
common shares.
The Fund did not repurchase any shares under the Share Repurchase Program during
the six months ended May 31, 2006.
6. Line of Credit
The Fund has entered into a Line of Credit Agreement with JPMorgan Chase for
$25,000,000 that expires on January 18, 2007. At May 31, 2006, the par value of
loans outstanding was $23,000,000 at a variable interest rate of 5.58%. During
the six months ended May 31, 2006, the average daily balance of loans
outstanding was $23,000,000 at a weighted average interest rate of approximately
5.04%. The maximum amount of loans outstanding at any time during the period was
$23,000,000. Interest on borrowings is based on market rates in effect at the
time of borrowing. The commitment fee is computed at a rate of 0.12% per annum
on the unused balance. The loan is collateralized by the Fund's portfolio.
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 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 JPMorgan Chase. Initial security loans made pursuant to the
Lending Agreement are required to be secured by U.S. Treasury obligations and/or
cash collateral not less than 102% of the market value of the securities issued
in the United States and 105% of the market value of 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 May 31, 2006, the market value of the securities on loan was $14,898,604, for
which cash collateral was received and invested in accordance with the Lending
Agreement. Such investments are presented on the Statement of Net Assets under
the caption "Securities Lending Collateral."
9. Credit and Market Risk
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.
20
<page>
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 Fund's Board of Trustees has delegated to DMC
the day-to-day functions of determining whether individual securities are liquid
for purposes of the Fund's limitation on investments in illiquid assets. Rule
144A and illiquid securities have been identified on the Statement of Net
Assets.
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. 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. There were no direct holdings during the six months
ended May 31, 2006.
10. 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.
21
<page>
Other Fund information
Delaware Investments Global Dividend and Income Fund, Inc.
Board consideration of Delaware Investments Global Dividend and Income Fund,
Inc. investment advisory agreement
At a meeting held on May 17-18, 2006 (the "Annual Meeting"), the Board of
Directors, including a majority of disinterested or independent Directors,
approved the renewal of the Investment Advisory Agreement for the Delaware
Investments Global Dividend and Income Fund, Inc. (the "Fund"). In making its
decision, the Board considered information furnished throughout the year at
regular Board meetings, as well as information prepared specifically in
connection with the Annual Meeting. Information furnished and discussed
throughout the year included reports detailing Fund performance, investment
strategies, expenses, compliance matters and other services provided by Delaware
Management Company ("DMC"), the investment advisor. Information furnished
specifically in connection with the Annual Meeting included materials provided
by DMC and its affiliates ("Delaware Investments") concerning, among other
things, the level of services provided to the Fund, the costs of such services
to the Fund, economies of scale and the financial condition and profitability of
Delaware Investments. In addition, in connection with the Annual Meeting, the
Board considered independent historical and comparative reports prepared by
Lipper Inc. ("Lipper"), an independent statistical compilation organization. The
Board also considered industry comparative information presented by
representatives from Lipper. The Lipper reports compared the Fund's investment
performance and expenses with those of other comparable mutual funds. The Board
also received certain supplemental information regarding management's policy
with respect to advisory fee levels and its philosophy with respect to
breakpoints; the structure of portfolio manager compensation; and any
constraints or limitations on the availability of securities in certain
investment styles which might inhibit DMC's ability to fully invest in
accordance with Fund policies.
In considering such materials, the independent Directors received assistance and
advice from and met separately with independent counsel and representatives from
Lipper. At the meeting with representatives from Lipper, Mr. Driscoll, Chairman
of the Delaware Investments (R) Family of Funds, and Chairman and Chief
Executive Officer of the investment advisor, was present to respond to questions
by Lipper and the independent Directors. While the Board considered the
Investment Advisory Agreements for all of the funds in the Delaware Investments
Family of Funds at the same Board meeting, information was provided and
considered by the Board for each fund individually. In approving the continuance
of the Investment Advisory Agreement for the Fund, the Board, including a
majority of independent Directors, determined that the existing advisory fee
structure was fair and reasonable and that the continuance of the Investment
Advisory Agreement was in the best interests of the Fund and its shareholders.
While attention was given to all information furnished, the following discusses
the primary factors relevant to the Board's deliberations and determination,
including those relating to the selection of the investment advisor and the
approval of the advisory fee.
NATURE, EXTENT AND QUALITY OF SERVICE. Consideration was given to the services
provided by Delaware Investments to the Fund and its shareholders. In reviewing
the nature, extent and quality of services, the Board emphasized reports
furnished to it throughout the year at regular Board meetings covering matters
such as the relative performance of the Fund, compliance of portfolio managers
with the investment policies, strategies and restrictions for the Fund, the
compliance of management personnel with the Code of Ethics adopted throughout
the Delaware Investments Family of Funds complex, the adherence to fair value
pricing procedures as established by the Board, and the accuracy of net asset
value calculations. The Board noted that it was pleased with the current
staffing of the Fund's investment advisor and management's efforts to strengthen
and deepen portfolio management teams during the past year, the emphasis on
research and the compensation system for advisory personnel. Favorable
consideration was given to DMC's efforts to maintain, and in some instances
increase, financial and human resources committed to fund matters. Other factors
taken into account by the Board were Delaware Investments' preparedness for, and
response to, legal and regulatory matters. The Board was satisfied with the
nature, extent and quality of the overall services provided by Delaware
Investments.
INVESTMENT PERFORMANCE. The Board considered the investment performance of DMC
and the Fund. The Board was pleased with DMC's investment performance. The Board
placed significant emphasis on the investment performance of the Fund in view of
its importance to shareholders. While consideration was given to performance
reports and discussions with portfolio managers at Board meetings throughout the
year, particular weight was given to the Lipper reports furnished for the Annual
Meeting. The Lipper reports prepared for the Fund showed the investment
performance of its shares in comparison to a group of similar funds as selected
by Lipper (the "Performance Universe"). A fund with the best performance is
ranked first, and a fund with the poorest performance is ranked last. The
highest/best performing 25% of funds in the Performance Universe make up the
first quartile; the next 25% - the second quartile; the next 25% - the third
quartile; and the poorest/worst performing 25% of funds in the Performance
Universe make up the fourth quartile. Comparative annualized performance for the
Fund was shown for the past one, three, five and 10-year periods, ended January
31, 2006. The Board noted its objective that the Fund's performance be at or
above the median of its Performance Universe. The following paragraph summarizes
the performance results for the Fund and the Board's view of such performance.
The Performance Universe for the Fund consisted of the Fund and all leveraged
closed-end income and preferred stock funds as selected by Lipper. The Lipper
report comparison showed that the Fund's total return for the one year period
was in the second quartile. The report further showed that the Fund's total
return for the three, five and 10 year periods was in the first quartile of such
Performance Universe. The Board was satisfied with such performance.
COMPARATIVE EXPENSES. The Board considered expense data for the Delaware
Investments Family of Funds. Management provided the Board with information on
pricing levels and fee structures for the Funds. The Board focused particularly
on the comparative analysis of the management fees and total expense ratios of
the Fund and the management fees and expense ratios of a group of similar
leveraged closed-end funds as selected by Lipper (the "Expense Group"). In
reviewing comparative costs, the Fund's contractual management fee and the
actual management fee incurred by the Fund were compared with the contractual
management fees (assuming all funds in the Expense Group were similar in size to
the Fund) and actual management fees (as reported by each fund) of other funds
within the Expense Group, taking into effect any applicable breakpoints and fee
waivers. The Fund's total expenses were also compared with those of its Expense
Group. The Board also considered fees paid to Delaware Investments for
non-management services. The Board noted its objective to limit the Fund's total
expense ratio to an acceptable range as compared to the median of the Expense
Group. The following paragraph summarizes the expense results for the Fund and
the Board's view of such expenses.
22
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The expense comparisons for the Fund showed that its actual management fee and
total expenses were in the quartile with the lowest expenses of its Expense
Group. The Board was satisfied with the management fees and total expenses of
the Fund in comparison to its Expense Group as shown in the Lipper report.
MANAGEMENT PROFITABILITY. The Board considered the level of profits, if any,
realized by Delaware Investments in connection with the operation of the Fund.
In this respect, the Board reviewed the Investment Management Profitability
Analysis that addressed the overall profitability of Delaware Investments'
business in providing management and other services to each of the individual
funds and the Delaware Investments (R) Family of Funds as a whole. Specific
attention was given to the methodology followed in allocating costs for the
purpose of determining profitability. Management stated that the level of
profits of Delaware Investments, to a certain extent, reflected operational cost
savings and efficiencies initiated by Delaware Investments. The Board considered
Delaware Investments' expenditures to improve services provided to fund
shareholders and to meet additional regulatory and compliance requirements
resulting from recent SEC initiatives. The Board also considered the extent to
which Delaware Investments might derive ancillary benefits from fund operations,
including the potential for procuring additional business as a result of the
prestige and visibility associated with its role as service provider to the
Delaware Investments Family of Funds, the benefits from allocation of fund
brokerage to improve trading efficiencies and the use of "soft" commission
dollars to pay for proprietary and non-proprietary research. The Board did not
find that the level of profits realized by Delaware Investments from the
relationships with the Fund and the Delaware Investments Family of Funds
required negotiation of reduction of fees.
ECONOMIES OF SCALE. As a closed-end fund, the Fund does not issue shares on a
continuous basis. Fund assets increase only to the extent that the value of the
underlying securities in the Fund increase. Accordingly, the Board determined
that the Fund was not likely to experience significant economies of scale due to
asset growth and, therefore, a fee schedule with breakpoints to pass the benefit
of such economies of scale on to shareholders was not likely to provide the
intended effect.
23
<page>
About the organization
This semiannual 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 trustees
Jude T. Driscoll
Chairman
Delaware Investments(R) Family of Funds
Philadelphia, PA
Thomas L. Bennett +
Private Investor
Rosemont, PA
John A. Fry
President
Franklin & Marshall College
Lancaster, PA
Anthony D. Knerr
Founder and Managing Director
Anthony Knerr & Associates
New York, NY
Lucinda S. Landreth
Former Chief Investment Officer
Assurant, Inc.
Philadelphia, PA
Ann R. Leven
Owner - ARL Associates,
Financial and Strategic Consultants
Washington, DC
Thomas F. Madison +
President and Chief Executive Officer
MLM Partners, Inc.
Minneapolis, MN
Janet L. Yeomans +
Vice President and Treasurer
3M Corporation
St. Paul, MN
J. Richard Zecher +
Founder
Investor Analytics
Scottsdale, AZ
+ Audit Committee Member
Affiliated officers
Michael P. Bishof
Senior Vice President and
Chief Financial Officer
Delaware Investments Family of Funds
Philadelphia, PA
David F. Connor
Vice President, Deputy General Counsel,
and Secretary
Delaware Investments Family of Funds
Philadelphia, PA
David P. O'Connor
Senior Vice President, General Counsel,
and Chief Legal Officer
Delaware Investments Family of Funds
Philadelphia, PA
John J. O'Connor
Senior Vice President and Treasurer
Delaware Investments Family of Funds
Philadelphia, PA
Contact information
Investment manager
Delaware Management Company, a series
of Delaware Management Business Trust
Philadelphia, PA
Principal Office of the Fund
2005 Market Street
Philadelphia, PA 19103
Independent Registered Public
Accounting Firm
Ernst & Young LLP
2001 Market Street
Philadelphia, PA 19103
Registrant and Stock Transfer
Agent
Mellon Investor Services, LLC
480 Washington Boulevard
Jersey City, NJ 07310
800 851-9677
For securities dealers
and financial institutions
representatives only
800 362-7500
Web site
www.delawareinvestments.com
Delaware Investments is the marketing name of Delaware Management Holdings, Inc.
and its subsidiaries.
The Fund files its complete schedule of portfolio holdings with the Securities
and Exchange Commission for the first and third quarters of each fiscal year on
Form N-Q. The Fund's Forms N-Q, as well as a description of the policies and
procedures that the Fund uses to determine how to vote proxies (if any) relating
to portfolio securities are available without charge (i) upon request, by
calling 800 523-1918; (ii) on the Fund's Web site at
http://www.delawareinvestments.com; and (iii) on the Commission's Web site at
http://www.sec.gov. The Fund's Forms N-Q may be reviewed and copied at the
Commission's Public Reference Room in Washington, D.C.; information on the
operation of the Public Reference Room may be obtained by calling 800 SEC-0330.
Information (if any) regarding how the Fund voted proxies relating to portfolio
securities during the most recently disclosed 12-month period ended June 30 is
available without charge (i) through the Fund's Web site at
http://www.delawareinvestments.com; and (ii) on the Commission's Web site at
http://www.sec.gov.
Your Reinvestment Options
Delaware Investments Global Dividend and Income Fund, Inc. offers an automatic
dividend reinvestment program. If you would like to reinvest dividends, and
shares are registered in your name, contact Mellon Investor Services, LLC at 800
851-9677. You will be asked to put your request in writing. If you have shares
registered in "street" name, contact the broker/dealer holding the shares or
your financial advisor.
24
<page>
[DELAWARE LOGO] [NYSE DGF LOGO]
(573) Printed in the USA
SA-DGF [5/06] CGI 7/06 MF-06-06-037 PO11117
Item 2. Code of Ethics
Not applicable.
Item 3. Audit Committee Financial Expert
Not applicable.
Item 4. Principal Accountant Fees and Services
Not applicable.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. 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
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Applicable to Form N-CSRs filed after fiscal years ending on or after
December 31, 2005.
Not applicable.
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
second fiscal quarter) that have materially affected, or are reasonably likely
to materially affect, the registrant's internal control over financial
reporting.
Item 12. Exhibits
(a) (1) Code of Ethics
Not applicable.
(2) Certifications of Principal Executive Officer and Principal Financial
Officer pursuant to Rule 30a-2 under the Investment Company Act of 1940 are
attached hereto as Exhibit 99.CERT.
(3) Written solicitations to purchase securities pursuant to Rule 23c-1
under the Securities Exchange Act of 1934.
Not applicable.
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
are furnished herewith as Exhibit 99.906CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf, by the undersigned, thereunto duly authorized.
Name of Registrant: Delaware Investments Global Dividend and Income Fund, Inc.
PATRICK P. COYNE
______________________________
By: Patrick P. Coyne
Title: President and Chief Executive Officer
Date: August 3, 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.
PATRICK P. COYNE
______________________________
By: Patrick P. Coyne
Title: President and Chief Executive Officer
Date: August 3, 2006
MICHAEL P. BISHOF
______________________________
By: Michael P. Bishof
Title: Chief Financial Officer
Date: August 3, 2006