UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number: 811-8246
Exact name of registrant as specified in charter:
Delaware Investments Global Dividend and Income Fund, Inc.
Address of principal executive offices:
2005 Market Street
Philadelphia, PA 19103
Name and address of agent for service:
David F. Connor, Esq.
2005 Market Street
Philadelphia, PA 19103
Registrant's telephone number, including area code: (800) 523-1918
Date of fiscal year end: November 30
Date of reporting period: November 30, 2006
Item 1. Reports to Stockholders
Annual Report Delaware
Investments
Global Dividend
and Income
Fund, Inc.
November 30, 2006
[DELAWARE INVESTMENTS LOGO] Closed-end
Table of contents
> Portfolio management review ............................................1
> Performance summary ....................................................6
> Sector and country allocations .........................................8
> Statement of net assets ...............................................10
> Statement of operations ...............................................21
> Statements of changes in net assets ...................................22
> Statement of cash flows ...............................................23
> Financial highlights ..................................................24
> Notes to financial statements .........................................25
> Report of independent registered public accounting firm ...............29
> Other Fund information ................................................30
> Board of directors/trustees and officers addendum .....................32
> About the organization ................................................34
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) 2007 Delaware Distributors, L.P.
Portfolio management review
Delaware Investments Global Dividend and Income Fund, Inc.
November 30, 2006
The managers of Delaware Investments Global Dividend and Income Fund, Inc.
provided the answers to the questions below as a review of the Fund's
activities for the fiscal year ended November 30, 2006. Please see pages 3, 4,
and 5 to learn more about the Fund managers.
Q: Can you please discuss the investment environment during the year ended
November 30, 2006?
A: On the whole, the U.S. stock market performed well and turned in higher
returns than we anticipated at the outset of the year.
Investors largely saw two different sets of conditions during the year. Roughly
through June 2006, U.S. stocks faced headwinds. Energy costs continued to rise
and put downside pressure on corporate earnings and consumer spending. Interest
rates rose as well. Stronger-than-expected inflation reports in the spring made
it more likely that the Federal Reserve Board (Fed) would continue to raise
short-term rates. The threat of a weakening economy coupled with uncertainty
about the inflation picture was a negative influence on equity prices, and
market performance was particularly weak in May and June 2006.
By July, conditions had improved noticeably. Corporate earnings, though
slowing, remained relatively solid, as did consumer spending in the face of a
weakening housing market. In addition, oil prices began declining sharply from
their historic highs and the Fed finally decided not to raise interest rates in
August and beyond, boosting performance in both the stock and bond markets
through the end of the year.
Q: How did the Fund perform during the year ended November 30, 2006?
A: Delaware Investments Global Dividend and Income Fund, Inc. returned +21.61%
at net asset value and +24.39% at market price (both figures reflect all
distributions reinvested). For complete annualized performance for Delaware
Investments Global Dividend and Income Fund, Inc., please see the table on page
6. By comparison, the Fund's benchmark - the Standard and Poor's 500 Index -
returned +14.23%, and the Fund's peer group, as measured by the Lipper
Closed-end Income and Preferred Stock Funds Average, gained 14.60% (source:
Lipper).
Delaware Investments Global Dividend and Income Fund, Inc., is invested
primarily in various types of assets: foreign and domestic large-cap value
equities, real estate investment trusts (REITs), high-yield bonds, non-U.S.
fixed income, and convertible securities, the last of which have some features
of both equity and fixed income securities. Each security type in the Fund
produces a measure of income for investors, and each may perform differently
from the others in different types of market environments.
During the year, dividend-oriented equity investors generally fared well, and
as the year progressed investors appeared to become increasingly risk averse.
Also of note, REITs strongly outperformed the broad U.S. stock market during
the year. For instance, the NAREIT Equity REIT Index, which tracks the
performance of U.S. REITs, gained 36.93%.
The Fund's equity allocation includes both U.S. and foreign stocks. During the
year, returns in established markets outside the U.S. often outpaced the
returns of the U.S. market as represented by the S&P 500 Index. Strong gains
made by global stock indices for the year ended November 30, 2006 were aided by
the effects of favorable currency conversion. With the U.S. dollar weakening,
gains made overseas are strengthened when U.S. investors convert them back to
U.S. dollars.
Q: What factors influenced performance in the Fund?
A: Expecting a slowdown in the economy and a reduced rate of corporate earnings
growth, we believed it was prudent to position the domestic equity portion of
the investment portfolio even more defensively than might be typical. As a
result, we held overweightings compared to the index in less economically
sensitive sectors, such as healthcare and consumer staples. The Fund was also
underweight in more economically sensitive areas, such as consumer
discretionary.
The views expressed are current as of the date of this report and are subject to
change.
(continues) 1
Portfolio management review
Delaware Investments Global Dividend and Income Fund, Inc.
We regularly look to invest in undervalued companies with good businesses that
we believe are priced well below their intrinsic value. During the most recent
period, we focused on companies that we believed to have particularly sound
balance sheets, strong dividend yields, and the potential to continue
generating relatively stable earnings, even in a weaker economy.
This approach led us to hold relatively small positions in the energy and
industrial sectors, both of which tend to be relatively sensitive to economic
changes. As the fiscal year progressed, however, we found an increasing number
of opportunities among technology stocks that we believed to be attractively
valued, adding a new position in Intel. More technology stocks were passing our
strict screening process, as a number of companies established
shareholder-friendly policies in the midst of successful turnarounds.
After several years of robust REIT performance, we continued to exercise
caution in this portion of the Fund, emphasizing companies with strong or
improving fundamentals and attractive valuations. We concentrated on several
key areas of the REIT market, beginning with economically sensitive holdings
such as industrial REITs. These cyclical companies generally benefit from
steady gross domestic product growth during the year.
We also were more heavily weighted than the NAREIT Equity REIT Index in REITs
with exposure to office property markets. We felt higher construction costs
would limit development in this category. In urban markets, certain office
stocks benefited during the year as increased demand drove rental rates higher.
Rising real estate prices in recent years forced many would-be homebuyers to
rent, creating what we believed were attractive prospects for apartment REITs.
We generally tried to capitalize on these and other trends.
REIT valuations have been propelled to all-time highs. Although we remained
optimistic at fiscal year end about the general long-term prospects for REITs,
we also remained skeptical about whether valuations can be sustained. By fiscal
year end, we had begun planning to focus on new opportunities only very
selectively, especially in the apartment and office sectors.
Q: Could you please name specific equity securities that influenced
performance?
A: Among domestic large-cap value stocks, several consumer discretionary stocks
were noteworthy for generating strong gains during the fiscal year. Toy
manufacturer Mattel benefited from the success of key brands and better supply
chain management, as well as from lower energy prices, which served to reduce
production costs for the company. Limited Brands performed well, in part on a
turnaround in its apparel businesses, as well as from its personal care
segment, Bath and Body Works. In healthcare, the Fund gained from its holdings
in Merck. The pharmaceutical company's stock recovered off a low, as investors'
concerns about legal liability surrounding its Vioxx pain medication abated.
Our holdings in the financial sector were often among our weakest equity
performers. For example, one stock that trailed the performance of the broad
equity market was bank company Huntington Bancshares. As with other banks,
Huntington encountered difficulty as the company's earnings suffered from less
profitable lending activities, caused by a challenging interest rate
environment. Insurance company Hartford Financial Services also underperformed
relative to the overall stock market, hindered by increased competition and a
slowdown in the growth of auto insurance premiums, among other factors.
Q: What role did other classes play in the Fund?
A: The Fund's various fixed income investments continued to provide another
source of income for shareholders as well as a measure of diversification for
the Fund. While stocks generally outperformed bonds for the year, total return
performance from U.S. high yield bonds was competitive. High yield bonds are
noninvestment grade securities issued by organizations with noninvestment grade
credit ratings. As such, they offer investors higher yields but an increased
risk of default by the issuer.
2
Especially during the late-year rally, lower-rated bonds outperformed other
types of fixed income investments, as a general search for yield could be
detected in the marketplace. As always, our approach to high yield investing
remained based on the selection of individual securities, analyzing the credits
available to us in the marketplace one bond issue at a time. Although the
economic climate and other big-picture factors were influential in the U.S.
bond market this year, we believe that company-specific characteristics
generally played a larger role in performance. We avoided making significant
sector bets, preferring to focus our research efforts on uncovering securities
that we thought offered value and yield advantages.
The Fund also held a significant position in non-U.S. stocks and bonds. At
year-end, notable international equity positions in the Fund included European
multinationals such as Total and ING Groep. We also added positions during the
year in Coca-Cola Amatil and Ono Pharmaceutical, as well as Vodafone and BMW
(Bayerische Motoren Werke). Among non-U.S. debt securities, the Fund was
invested in an array of foreign government securities in markets around the
world, including securities issued by Japan and the nations of the European
Union, among others.
Fund managers
Damon J. Andres, CFA
Vice President, Senior Portfolio Manager
Mr. Andres, who joined Delaware Investments in 1994, currently serves as a
portfolio manager for REIT investments and convertibles. From 1991 to 1994, he
performed investment-consulting services as a consulting associate with
Cambridge Associates. Mr. Andres earned a bachelor's degree in business
administration with an emphasis in finance and accounting from the University
of Richmond.
Todd A. Bassion, CFA
Vice President, Portfolio Manager, Senior Equity Analyst
Mr. Bassion joined Delaware Investments in June 2005 as a senior analyst on the
firm's International Value Equity team. He takes a lead role in generating and
researching new companies for the portfolios as well as providing input on
ongoing portfolio management. Mr. Bassion previously worked at Arborway Capital,
where he was a key part of the team that started at ValueQuest/TA and moved to
Thomas Weisel Asset Management with its acquisition of ValueQuest/TA in 2002.
Mr. Bassion, who joined ValueQuest/TA in 2000, served as a research associate
there. Mr. Bassion earned a bachelor's degree in economics from Colorado
College.
Edward A. "Ned" Gray, CFA
Vice President, Senior Portfolio Manager
Mr. Gray joined Delaware Investments in June 2005 to develop the firm's
International Value Equity team, from Arborway Capital, which he co-founded in
January 2005. He previously worked in the investment management business at
Thomas Weisel Asset Management, and ValueQuest, which was acquired by TWAM in
2002. At ValueQuest, which he joined in 1987, Mr. Gray served as a senior
investment professional with responsibilities for portfolio management,
security analysis, quantitative research, performance analysis, global
research, back office/investment information systems integration, trading, and
client and consultant relations. Prior to ValueQuest, he was a research analyst
at the Center for Competitive Analysis. Mr. Gray received his bachelor's degree
in history from Reed College and a master of arts in law and diplomacy, in
international economics, business, and law from Tufts University's Fletcher
School of Law and Diplomacy.
Jordan L. Irving
Vice President, Senior Portfolio Manager
Mr. Irving joined Delaware Investments in 2004 as a vice president, senior
portfolio manager for the firm's Large-Cap Value Focus strategy. Previously, he
worked for the U.S. Active Large-Cap Value team within Merrill Lynch Investment
Managers for six years, where he managed mutual funds and separate accounts for
institutions and private clients. Mr. Irving graduated from Yale University
with a bachelor's degree in American studies and earned a special diploma in
social studies at Oxford University. He competed for the United States National
Rowing Team, winning a gold medal at the 1997 World Rowing Championships in
Aiguebelette, France.
(continues) 3
Fund managers (continued)
Nikhil G. Lalvani, CFA
Vice President, Portfolio Manager
Mr. Lalvani is a portfolio manager with the firm's Large-Cap Value Focus team.
At Delaware Investments, Mr. Lalvani has served as both a fundamental and
quantitative analyst. Prior to joining the firm in 1997, he was a research
associate with Bloomberg. Mr. Lalvani holds a bachelor's degree in finance from
Penn State University and is a member of the CFA Society of Philadelphia.
Anthony A. Lombardi, CFA
Vice President, Senior Portfolio Manager
Mr. Lombardi joined Delaware Investments in 2004 as a vice president and senior
portfolio manager for the firm's Large-Cap Value Focus strategy. Previously,
Mr. Lombardi worked at Merrill Lynch Investment Managers from 1998 to 2004,
where he rose to the position of director and portfolio manager for the U.S.
Active Large-Cap Value team, managing mutual funds and separate accounts for
institutions and private clients. Prior to that he worked at Dean Witter
Reynolds for seven years as a sell-side equity research analyst, and he began
his career as an investment analyst with Crossland Savings in 1989. Mr.
Lombardi graduated from Hofstra University, receiving a bachelor's degree in
finance and an MBA with a concentration in finance. He is a member of the New
York Society of Security Analysts and the CFA Institute.
Zoe A. Neale
Senior Vice President, Chief Investment Officer
- - International Equity
Ms. Neale joined Delaware Investments in June 2005 to develop the firm's
International Value Equity strategies, from Arborway Capital, which she
co-founded in January 2005. Previously she ran the International Value
Strategies business at Thomas Weisel Asset Management (TWAM). She joined TWAM
when it acquired ValueQuest/TA in 2002. Ms. Neale started at ValueQuest in 1996
and served as a senior investment professional with portfolio management and
global research responsibilities for several sectors. Prior to ValueQuest, she
was an assistant vice president and portfolio manager for Anchor Capital
Advisors, with generalist research responsibilities. Ms. Neale earned a
bachelor's degree in economics from the University of Texas, Austin, and an MBA
from Northeastern University.
D. Tysen Nutt Jr.
Senior Vice President, Senior Portfolio Manager,
Team Leader - Large-Cap Value Focus Equity
Mr. Nutt joined Delaware Investments in 2004 as senior vice president and
senior portfolio manager for the firm's Large-Cap Value Focus strategy. Before
joining the firm, Mr. Nutt led the U.S. Active Large-Cap Value team within
Merrill Lynch Investment Managers (MLIM), where he managed mutual funds and
separate accounts for institutions and private clients. Mr. Nutt departed MLIM
as a managing director. Prior to joining MLIM in 1994, Mr. Nutt was with Van
Deventer & Hoch (V&H) where he managed large-cap value portfolios for
institutions and private clients. He began his investment career at Dean Witter
Reynolds, where he eventually became vice president, investments. Mr. Nutt
earned his bachelor's degree from Dartmouth College, and he is a member of the
New York Society of Security Analysts and the CFA Institute.
Philip R. Perkins
Senior Vice President, Senior Portfolio Manager
Mr. Perkins joined Delaware Investments in 2003. He leads the firm's
international bond team, where his responsibilities include managing global
bond assets across the product matrix. Prior to joining Delaware Investments,
Mr. Perkins worked at Deutsche Bank for five years. He served as a managing
director in global markets from 2001 to 2003, during that same time he was the
chief operating officer for the Bank's emerging markets division in London, and
from 1998 to 2001 he was responsible for local markets trading in Moscow. Prior
to that, Mr. Perkins was chief executive officer of Dinner Key Advisors, a
registered broker/dealer founded to trade derivative mortgage-backed bonds with
institutional clients. He began his career at Salomon Brothers, where he was a
mortgage/CMO trader from 1985 to 1990. Mr. Perkins holds a bachelor's degree in
international studies with a minor in computer science from the University of
Notre Dame.
Timothy L. Rabe, CFA
Senior Vice President, Head of High Yield Investments,
Senior Portfolio Manager
Mr. Rabe joined Delaware Investments in 2000. He is head of the High Yield
team, responsible for investing strategy for all high yield fixed income funds
and strategies at the firm. Prior to joining Delaware Investments, Mr. Rabe was
a high yield portfolio manager for Conseco Capital Management for five
4
years. Prior to that, he worked as a tax analyst for the Northern Trust
Company. Mr. Rabe received a bachelor's degree in finance from the University
of Illinois.
Robert A. Vogel Jr., CFA
Vice President, Senior Portfolio Manager
Mr. Vogel joined Delaware Investments in 2004 as a vice president, senior
portfolio manager for the firm's Large-Cap Value Focus strategy. He previously
worked at Merrill Lynch Investment Managers for more than seven years, where he
rose to the position of director and portfolio manager within the U.S. Active
Large-Cap Value team. He began his career in 1992 as a financial consultant at
Merrill Lynch. Mr. Vogel graduated from Loyola College in Maryland, earning
both bachelor's and master's degrees in finance. He also earned an MBA with a
concentration in finance from The Wharton School of the University of
Pennsylvania, and he is a member of the New York Society of Security Analysts
and the CFA Society of Philadelphia.
Nashira S. Wynn
Vice President, Portfolio Manager
Ms. Wynn is a portfolio manager with the firm's Large-Cap Value Focus team.
Prior to joining Delaware Investments in 2004, she was an equity research
analyst for Merrill Lynch Investment Managers. Ms. Wynn earned a bachelor's
degree in finance, with a minor in economics, from The College of New Jersey,
and she attended Oxford University as a presidential scholar. Ms. Wynn is also
a CFA Level I candidate.
Babak (Bob) Zenouzi
Senior Vice President, Senior Portfolio Manager
Mr. Zenouzi rejoined Delaware Investments in May 2006. He left the firm in 1999
after seven years as an analyst and portfolio manager. Currently, he leads the
firm's REIT group, including the team, its process, and its institutional and
retail products, which he created during his prior time with the firm. He also
serves as lead portfolio manager for the firm's Dividend and Income products,
which he helped create in the 1990s. Most recently, Mr. Zenouzi worked at
Chartwell Investment Partners from 1999 to 2006, where he was a partner and
senior portfolio manager on Chartwell's Small-Cap Value portfolio. He began his
career with The Boston Company, where he held several positions in accounting
and financial analysis. Mr. Zenouzi earned a master's degree in finance from
Boston College and a bachelor's degree from Babson College. He is a member of
the National Association of Real Estate Investment Trusts.
5
Performance summary
Delaware Investments Global Dividend and Income Fund, Inc.
The performance data quoted represent past performance; past performance does
not guarantee future results. Investment return and principal value will
fluctuate so your shares, when sold, may be worth more or less than their
original cost. Current performance may be lower or higher than the performance
data quoted. A rise/fall in interest rates can have a significant impact on bond
prices and the net asset value (NAV) of the Fund. Funds that invest in bonds can
lose their value as interest rates rise and an investor can lose principal.
Instances of high double-digit returns are highly unusual and cannot be
sustained, and were achieved primarily during favorable market conditions.
Please obtain the performance data for the most recent month end by calling 800
523-1918.
Fund Performance
Average annual total returns
Through November 30, 2006 1 year 5 years 10 years Lifetime
________________________________________________________________________________
At Market Price +24.39% +14.22% +10.20% +10.62%
At Net Asset Value +21.61% +15.73% +9.82% +10.88%
________________________________________________________________________________
High yielding noninvestment grade bonds involve higher risk than investment
grade bonds. Adverse conditions may affect the issuer's ability to pay interest
and principal on these securities.
Funds that invest in REITs are subject to many of the risks associated with
direct real estate ownership and, as such, may be adversely affected by declines
in real-estate values and general and local economic conditions.
Foreign investments are subject to risks not ordinarily associated with domestic
investments, such as currency, economic and political risks, and different
accounting standards.
Diversification does not assure a profit or protect against loss in a declining
market.
Returns reflect reinvestment of all distributions. Dividends and distributions,
if any, are assumed, for the purpose of this calculation, to be reinvested at
prices obtained under the Fund's dividend reinvestment policy. Shares of the
Fund were initially offered with a sales charge of 6%. Performance since
inception does not include the sales charge or any brokerage commissions for
purchases made since inception. Past performance is not a guarantee of future
results.
The performance table and graphs on the following page do not reflect the
deduction of taxes the shareholder would pay on Fund distributions or sale of
Fund shares.
Fund basics
As of November 30, 2006
________________________________________________________________________________
Fund objective
________________________________________________________________________________
The Fund seeks to achieve high current income. Capital appreciation is a
secondary objective.
________________________________________________________________________________
Total Fund net assets
________________________________________________________________________________
$73 million
________________________________________________________________________________
Number of holdings
________________________________________________________________________________
421
________________________________________________________________________________
Fund start date
________________________________________________________________________________
March 4, 1994
________________________________________________________________________________
NYSE symbols
________________________________________________________________________________
DGF
6
Market Price vs. Net Asset Value
November 30, 2005 through November 30, 2006
[MARKET PRICE VS. NET ASSET VALUE LINE GRAPH]
Past performance is not a guarantee of future results.
Performance of a $10,000 Investment
November 30, 1996 through November 30, 2006
[PERFORMANCE OF A $10,000 INVESTMENT LINE GRAPH]
Chart assumes $10,000 invested in the Fund on November 30, 1996, and reflects
the reinvestment of all distributions at market value. The chart assumes $10,000
invested in the Lipper Closed-End Income and Preferred Stock Funds Average at
Market Price and at Net Asset Value. Performance of the Fund and the Lipper peer
group at market value is based on market performance during the period.
Performance of the Fund and the Lipper peer group at net asset value is based on
the fluctuations in net asset value during the period. Delaware Investments
Global Dividend and Income Fund, Inc. was initially offered with a sales charge
of 6%. Performance does not include fees, the initial sales charge, or any
brokerage commissions for purchase. Investments in the Fund are not available at
net asset value.
The Lipper Closed-End Income and Preferred Stock Funds Average represents the
average return of closed-end income and preferred stock mutual funds tracked by
Lipper (source: Lipper). You cannot invest directly in an index.
Past performance is not a guarantee of future results.
7
Sector and country allocations
Delaware Investments Global Dividend and Income Fund, Inc.
As of November 30, 2006
Sector designations may be different than the sector designations presented in
other Fund materials.
Percentage
Sector/Country of Net Assets
________________________________________________________________________________
Common Stock 76.34%
Consumer Discretionary 9.45%
Consumer Staples 5.33%
Diversified REITs 2.09%
Energy 3.10%
Financials 14.07%
Health Care 9.06%
Health Care REITs 1.23%
Hotel REITs 0.49%
Industrial REITs 1.60%
Industrials 6.06%
Information Technology 7.72%
Mall REITs 1.90%
Manufactured Housing REITs 0.18%
Materials 2.86%
Mortgage REITs 0.50%
Multifamily REITs 0.72%
Office REITs 2.51%
Self-Storage REITs 0.72%
Shopping Center REITs 0.64%
Specialty REITs 0.47%
Telecommunications 4.57%
Utilities 1.07%
________________________________________________________________________________
Convertible Preferred Stock 2.78%
Banking, Finance & Insurance 1.40%
Basic Materials 0.27%
Cable, Media & Publishing 0.21%
Energy 0.35%
Telecommunications 0.10%
Utilities 0.45%
________________________________________________________________________________
Preferred Stock 2.40%
Leisure, Lodging & Entertainment 0.38%
Real Estate 2.02%
________________________________________________________________________________
Agency Obligations 0.21%
________________________________________________________________________________
Commercial Mortgage-Backed Securities 0.12%
________________________________________________________________________________
Convertible Bonds 5.98%
Aerospace & Defence 0.41%
Cable, Media & Publishing 0.21%
Computers & Technology 1.23%
Energy 0.75%
Health Care & Pharmaceuticals 1.13%
Leisure, Lodging & Entertainment 0.26%
Real Estate 0.42%
Retail 0.72%
Telecommunications 0.14%
Transportation 0.31%
Utilities 0.40%
________________________________________________________________________________
Corporate Bonds 22.93%
Banking 1.06%
Basic Industry 2.29%
Brokerage 0.55%
Capital Goods 1.15%
Consumer Cyclical 2.33%
Consumer Non-Cyclical 1.76%
Energy 1.36%
Finance & Investments 1.71%
Media 1.54%
Real Estate 0.28%
Services Cyclical 3.28%
Services Non-Cyclical 1.38%
Technology & Electronics 1.28%
Telecommunications 2.04%
Utilities 0.92%
________________________________________________________________________________
Foreign Agencies 2.82%
Austria 0.29%
Germany 2.26%
Luxembourg 0.27%
________________________________________________________________________________
Regional Agency 0.26%
________________________________________________________________________________
Regional Authority 0.21%
________________________________________________________________________________
Senior Secured Loan 0.06%
________________________________________________________________________________
Sovereign Agencies 0.31%
France 0.08%
Japan 0.23%
________________________________________________________________________________
Sovereign Debt 10.14%
Austria 0.79%
France 1.51%
Germany 1.04%
8
Percentage
Sector/Country of Net Assets
________________________________________________________________________________
Sovereign Debt (continued)
Japan 2.57%
Malaysia 0.41%
Norway 1.67%
Poland 0.63%
Republic of Korea 0.26%
Sweden 0.44%
United Kingdom 0.82%
________________________________________________________________________________
Supranational Banks 1.90%
________________________________________________________________________________
Warrant 0.00%
________________________________________________________________________________
Repurchase Agreements 3.10%
________________________________________________________________________________
Securities Lending Collateral 14.46%
Fixed Rate Notes 1.50%
Variable Rate Notes 12.96%
________________________________________________________________________________
Total Market Value of Securities 144.02%
________________________________________________________________________________
Obligation to Return Securities Lending Collateral (14.46%)
________________________________________________________________________________
Borrowing Under Line of Credit (31.69%)
________________________________________________________________________________
Receivables and Other Assets Net of Liabilities 2.13%
________________________________________________________________________________
Total Net Assets 100.00%
________________________________________________________________________________
Country
________________________________________________________________________________
Australia 2.03%
Austria 1.21%
Belgium 0.64%
Bermuda 0.26%
British Virgin Islands 0.15%
Canada 2.09%
Cayman Islands 0.13%
Denmark 0.72%
Finland 1.28%
France 5.82%
Germany 4.87%
Hong Kong 0.72%
Ireland 0.38%
Japan 9.85%
Luxembourg 0.75%
Malaysia 0.41%
Marshall Islands 0.11%
Mexico 1.46%
Netherlands Antilles 0.34%
Netherlands 1.74%
Norway 2.11%
Poland 0.63%
Republic of Korea 0.86%
Supranational 1.90%
Sweden 1.40%
Switzerland 0.74%
United Kingdom 7.58%
United States 79.38%
________________________________________________________________________________
Total 129.56%
________________________________________________________________________________
9
Statement of net assets
Delaware Investments Global Dividend and Income Fund, Inc.
November 30, 2006
Number of Market
Shares Value (U.S. $)
______________________________________________________________________________
Common Stock - 76.34% (
______________________________________________________________________________
Consumer Discretionary - 9.45%
@=+II Avado Brands 272 $ -
Bayerische Motoren Werke 9,583 527,829
*+ Charter Communications
Class A 3,600 10,620
Don Quijote 29,400 607,050
DSG International 60,970 233,723
Esprit Holdings 40,000 414,720
Gap 35,700 668,304
Honda Motor 10,000 354,212
+ Idearc 1,045 28,779
Kesa Electricals 71,395 500,354
Koninklijke Philips Electronics 12,677 471,597
* Lagardere Groupe 5,543 405,950
Limited Brands 23,700 751,053
Mattel 30,600 671,670
Nissan Motor 36,700 447,692
Starwood Hotels & Resorts
Worldwide 2,500 160,425
WPP Group 45,939 609,587
____________
6,863,565
____________
Consumer Staples - 5.33%
* Coca-Cola Amatil 88,248 520,782
ConAgra Foods 2,300 59,110
Greggs 1,660 129,912
Heinz (H.J.) 17,500 777,875
Kao 14,000 377,365
Kimberly-Clark 10,600 704,582
Metro 9,827 613,238
Safeway 22,200 683,982
____________
3,866,846
____________
Diversified REITs - 2.09%
* CentraCore Properties Trust 10,000 321,200
Hang Lung Properties 47,000 104,528
iStar Financial 10,700 500,653
Liberty Property Trust 4,600 235,566
Spirit Finance 9,600 117,216
* Washington Real Estate
Investment Trust 5,500 235,785
____________
1,514,948
____________
Energy - 3.10%
Chevron 11,100 802,752
ConocoPhillips 9,400 632,620
*+ Petroleum Geo-Services ADR 691 46,601
* Total 10,860 770,181
____________
2,252,154
____________
Financials - 14.07%
Allstate 11,600 736,369
Aon 19,900 710,032
AXA 11,931 451,903
Chubb 12,800 662,528
Dexia 17,004 463,896
Hartford Financial Services
Group 7,300 626,048
HBOS 20,480 419,113
Huntington Bancshares 26,500 644,215
ING Groep 14,843 632,769
* Kookmin Bank ADR 5,600 438,200
Mitsubishi UFJ Financial
Group 30 383,585
Morgan Stanley 9,200 700,672
* Nordea Bank 42,325 597,526
Royal Bank of Scotland
Group 15,690 568,150
Standard Chartered 17,849 511,941
Wachovia 11,900 644,861
Washington Mutual 14,500 633,360
Westpac Banking 20,104 387,010
____________
10,212,178
____________
Health Care - 9.06%
Abbott Laboratories 13,600 634,576
Baxter International 15,300 684,522
Bristol-Myers Squibb 28,600 710,138
Merck & Co. 16,900 752,219
Novartis 9,151 533,398
Novo-Nordisk 6,764 522,133
Ono Pharmaceutical 8,500 433,996
Pfizer 27,000 742,230
Sanofi-Aventis 4,979 437,178
Terumo 11,400 462,894
Wyeth 13,700 661,436
____________
6,574,720
____________
Health Care REITs - 1.23%
Health Care Property
Investors 7,600 275,652
* Medical Properties Trust 9,400 139,590
* Nationwide Health
Properties 7,300 216,007
Ventas 6,800 264,860
____________
896,109
____________
Hotel REITs - 0.49%
* Hersha Hospitality Trust 26,100 301,194
* Highland Hospitality 3,900 55,302
____________
356,496
____________
Industrial REITs - 1.60%
AMB Property 6,000 367,620
First Potomac Realty Trust 5,800 178,118
ProLogis 9,400 612,598
____________
1,158,336
____________
Industrials - 6.06%
* Asahi Glass 41,000 484,562
+ British Airways 52,159 505,250
Canadian Pacific Railway 1,121 62,307
Compagnie de Saint-Gobain 6,389 509,792
Donnelley (R.R.) & Sons 20,100 708,927
*+ Foster Wheeler 969 52,342
10
Number of Market
Shares Value (U.S. $)
______________________________________________________________________________
Common Stock (continued)
______________________________________________________________________________
Industrials (continued)
+ Grupo Aeroportuario del
Centro Norte Sab ADR 2,600 $ 56,030
* Macquarie Infrastructure 12,600 408,240
*+ Petrojarl ADR 691 7,910
Tomkins 79,983 375,004
Travis Perkins 14,937 509,464
Waste Management 19,700 721,216
____________
4,401,044
____________
Information Technology - 7.72%
Canon 9,600 507,577
+ CGI Group 71,962 496,898
Fujitsu 58,000 474,022
Hewlett-Packard 19,600 773,415
Intel 34,800 742,980
International Business Machines 7,700 707,784
Nokia Oyj 28,755 578,461
* Tandberg 19,243 265,537
* TietoEnator Oyj 12,201 347,567
+ Xerox 43,000 709,500
____________
5,603,741
____________
Mall REITs - 1.90%
General Growth Properties 7,600 417,544
Macerich 4,700 401,709
Simon Property Group 5,500 560,890
____________
1,380,143
____________
Manufactured Housing REITs - 0.18%
Equity Lifestyle Properties 2,500 129,925
____________
129,925
____________
Materials - 2.86%
Cemex Sab de CV 122,690 399,915
duPont (E.I.) deNemours 16,700 783,730
Lafarge 3,411 495,554
Rio Tinto 7,421 396,080
____________
2,075,279
____________
Mortgage REITs - 0.50%
* Gramercy Capital 8,300 232,483
JER Investors Trust 6,600 130,614
____________
363,097
____________
Multifamily REITs - 0.72%
American Campus
Communities 4,000 118,800
Equity Residential 7,600 404,776
____________
523,576
____________
Office REITs - 2.51%
Alexandria Real Estate Equities 2,400 247,392
Brandywine Realty Trust 10,063 353,714
* Duke Realty 10,100 439,552
Highwoods Properties 4,500 183,600
Mack-Cali Realty 2,700 147,528
* Parkway Properties 3,700 191,956
PS Business Parks 2,500 178,125
Reckson Associates Realty 1,700 82,246
____________
1,824,113
____________
Self-Storage REITs - 0.72%
Public Storage 3,300 317,724
* U-Store-It Trust 9,300 203,484
____________
521,208
____________
Shopping Center REITs - 0.64%
Cedar Shopping Centers 10,900 198,816
New Plan Excel Realty Trust 6,900 196,581
* Ramco-Gershenson Properties 1,800 66,564
____________
461,961
____________
Specialty REITs - 0.47%
* Entertainment Properties
Trust 5,600 339,920
____________
339,920
____________
Telecommunications - 4.57%
AT&T 23,200 786,712
NTT DoCoMo 295 451,102
* Telefonos de Mexico de C.V.
ADR 17,800 464,580
Telstra 77,504 230,523
Telstra - Installment Receipt 80,396 148,423
Verizon Communications 20,900 730,246
Vodafone Group 190,125 502,703
____________
3,314,289
____________
Utilities - 1.07%
+ Mirant 1,934 58,832
Progress Energy 15,100 721,327
____________
780,159
____________
Total Common Stock
(cost $43,843,188) 55,413,807
____________
______________________________________________________________________________
Convertible Preferred Stock - 2.78%
______________________________________________________________________________
Banking, Finance & Insurance - 1.40%
Aspen Insurance 5.625%,
exercise price $29.28,
expiration date 12/31/49 3,400 187,425
~ Citigroup Funding 5.02%,
exercise price $29.50,
expiration date 9/27/08 7,000 220,500
E Trade Financial 6.125%,
exercise price $21.82,
expiration date 11/18/08 3,500 108,500
* Lehman Brothers Holdings
6.25%, exercise price
$54.24, expiration date
10/15/07 9,250 254,374
* Marshall & Ilsley 6.50%,
exercise price $46.28,
expiration date 8/15/07 4,500 118,710
Sovereign Capital Trust
4.375%, exercise price
$29.05, expiration date
3/1/34 2,500 124,063
____________
1,013,572
____________
(continues) 11
Statement of net assets
Delaware Investments Global Dividend and Income Fund, Inc.
Number of Market
Shares Value (U.S. $)
______________________________________________________________________________
Convertible Preferred Stock (continued)
______________________________________________________________________________
Basic Materials - 0.27%
Freeport-McMoRan Copper
& Gold 5.50%, exercise
price $48.65, expiration
date 12/31/49 40 $ 55,900
Huntsman 5.00%, exercise
price $28.29, expiration
date 2/16/08 3,500 138,250
____________
194,150
____________
Cable, Media & Publishing - 0.21%
# Interpublic Group 5.25%
144A, exercise price
$13.66, expiration date
12/31/49 140 154,525
____________
154,525
____________
Energy - 0.35%
Chesapeake Energy 4.50%,
exercise price $44.17,
expiration date 12/31/49 1,275 130,050
El Paso Energy Capital Trust I
4.75% exercise price
$41.59, expiration date
3/31/28 3,250 125,613
____________
255,663
____________
Telecommunications - 0.10%
Lucent Technologies Capital
Trust I 7.75%, exercise
price $24.80, expiration
date 3/15/17 70 71,855
____________
71,855
____________
Utilities - 0.45%
Entergy 7.625%, exercise
price $87.64, expiration
date 2/17/09 3,500 207,813
NRG Energy 5.75%, exercise
price $60.45, expiration
date 3/16/09 440 120,230
____________
328,043
____________
Total Convertible Preferred Stock
(cost $1,889,603) 2,017,808
____________
______________________________________________________________________________
Preferred Stock - 2.40%
______________________________________________________________________________
Leisure, Lodging & Entertainment - 0.38%
Red Lion Hotels 9.50% 10,226 276,409
____________
276,409
____________
Real Estate - 2.02%
* Equity Inns Series B 8.75% 10,000 261,500
LaSalle Hotel Properties
10.25% 12,500 321,750
Ramco-Gershenson
Properties 9.50% 11,500 309,408
SL Green Realty 7.625% 22,000 569,579
____________
1,462,237
____________
Total Preferred Stock
(cost $1,655,650) 1,738,646
____________
Principal
Amount o
______________________________________________________________________________
Agency Obligations - 0.21%
______________________________________________________________________________
Fannie Mae 6.375% 8/15/07 AUD 191,000 $150,549
____________
Total Agency Obligations
(cost $145,975) 150,549
____________
______________________________________________________________________________
Commercial Mortgage-Backed Securities - 0.12%
______________________________________________________________________________
# First Union National Bank
Commercial Mortgage
Trust Series 2001-C2 L
144A 6.46% 1/12/43 USD 85,000 86,759
____________
Total Commercial Mortgage-
Backed Securities
(cost $86,272) 86,759
____________
______________________________________________________________________________
Convertible Bonds - 5.98%
______________________________________________________________________________
Aerospace & Defense - 0.41%
# AAR 144A 1.75%, 2/1/26
exercise price $29.43,
expiration date 2/1/26 90,000 98,663
EDO 4.00% 11/15/25,
exercise price $34.19,
expiration date 11/15/25 90,000 85,388
# L-3 Communications 144A
3.00%, 8/1/35 exercise
price $102.16, expiration
date 8/1/35 110,000 114,812
____________
298,863
____________
Cable, Media & Publishing - 0.21%
# Playboy Enterprises 144A
3.00%, 3/15/25 exercise
price $17.02, expiration
date 3/15/25 160,000 152,200
____________
152,200
____________
Computers & Technology - 1.23%
Fairchild Semiconductor
5.00%, 11/1/08 exercise
price $30.00, expiration
date 11/1/08 140,000 139,475
Hutchinson Technology
3.25%, 1/15/26, exercise
price $36.43, expiration
date 1/15/26 120,000 112,350
# Informatica 144A
3.00%, 3/15/26 exercise
price $20.00, expiration
date 3/15/26 175,000 173,469
# Intel 144A 2.95%, 12/15/35
exercise price $31.53,
expiration date 12/15/35 105,000 97,781
^ ON Semiconductor Series B
1.142%, 4/15/24
exercise price $9.82,
expiration date 4/15/24 200,000 181,249
SanDisk 1.00%, 5/15/13
exercise price $82.36,
expiration date 5/15/13 60,000 53,550
12
Principal Market
Amount o Value (U.S.$)
______________________________________________________________________________
Convertible Bonds (continued)
______________________________________________________________________________
Computers & Technology (continued)
# Sybase 144A 1.75%, 2/22/25
exercise price $25.22,
expiration date 2/22/25 USD 125,000 $ 138,125
____________
895,999
____________
Energy - 0.75%
Halliburton 3.125%, 7/15/23
exercise price $18.81,
expiration date 7/15/23 100,000 185,000
Pride International
3.25%, 5/1/33 exercise
price $25.70, expiration
date 5/1/33 80,000 107,300
Schlumberger
2.125%, 6/1/23 exercise
price $40.00, expiration
date 6/1/23 140,000 249,025
____________
541,325
____________
Health Care & Pharmaceuticals - 1.13%
# Allergan 144A
1.50%, 4/1/26 exercise
price $126.66, expiration
date 4/1/26 150,000 161,625
# Amgen 144A
0.375%, 2/1/13 exercise
price $79.48, expiration
date 2/1/13 60,000 60,300
~ Bristol-Myers Squibb
4.89%, 9/15/23 exercise
price $41.28, expiration
date 9/15/23 100,000 100,500
CV Therapeutics
3.25%, 8/16/13 exercise
price $27.00, expiration
date 8/16/13 45,000 37,969
*# Nektar Therapeutics 144A
3.25%, 9/28/12 exercise
price $21.52, expiration
date 9/28/12 125,000 130,156
* Teva Pharmaceutical Finance
0.25%, 2/1/26 exercise
price $47.16, expiration
date 2/1/26 120,000 115,500
~ Wyeth 5.109%, 1/15/24
exercise price $60.39,
expiration date 1/15/24 200,000 212,800
____________
818,850
____________
Leisure, Lodging & Entertainment - 0.26%
# Regal Entertainment Group
144A 3.75%, 5/15/08
exercise price $14.65,
expiration date 5/15/08 130,000 185,088
____________
185,088
____________
Real Estate - 0.42%
MeriStar Hospitality
9.50%, 4/1/10 exercise
price $10.18, expiration
date 4/1/10 300,000 307,950
____________
307,950
____________
Retail - 0.72%
*; Dick's Sporting Goods
1.606%, 2/18/24 exercise
price $58.132, expiration
date 2/18/24 140,000 137,200
^ Lowe's Companies
0.00%, 10/19/21 exercise
price $29.05, expiration
date 10/19/21 95,000 100,581
# Saks 144A 2.00%, 3/15/24
exercise price $11.97,
expiration date 3/15/24 125,000 176,563
# United Auto Group 144A
3.50%, 4/1/26 exercise
price $23.69, expiration
date 4/1/26 90,000 104,400
____________
518,744
____________
Telecommunications - 0.14%
Qwest Communications
International
3.50%, 11/15/25 exercise
price $5.90, expiration
date 11/15/25 70,000 103,600
____________
103,600
____________
Transportation - 0.31%
# ExpressJet Holdings 144A
4.25%, 8/1/23 exercise
price $18.20, expiration
date 8/1/23 50,000 47,063
JetBlue Airways
3.50%, 7/15/33 exercise
price $28.33, expiration
date 7/15/33 100,000 96,000
* 3.75%, 3/15/35 exercise
price $17.10, expiration
date 3/15/35 80,000 84,400
____________
227,463
____________
Utilities - 0.40%
# CenterPoint Energy 144A
3.75%, 5/15/23 exercise
price $11.31, expiration
date 5/15/23 200,000 288,750
____________
288,750
____________
Total Convertible Bonds
(cost $3,944,683) 4,338,832
____________
(continues) 13
Statement of net assets
Delaware Investments Global Dividend and Income Fund, Inc.
Principal Market
Amount o Value (U.S.$)
______________________________________________________________________________
Corporate Bonds - 22.93%
______________________________________________________________________________
Banking - 1.06%
Citigroup 0.80% 10/30/08 JPY 17,400,000 $ 150,146
Depfa Bank 20.00% 11/19/07 TRY 100,000 68,678
~# Resona Bank 144A
4.125% 9/29/49 EUR 100,000 129,787
Vneshtorgbank
4.25% 2/15/16 EUR 120,000 157,262
WM Covered Bond
3.875% 9/27/11 EUR 200,000 265,342
____________
771,215
____________
Basic Industry - 2.29%
Abitibi-Consolidated
6.95% 12/15/06 USD 5,000 5,000
* 7.875% 8/1/09 40,000 39,200
* AK Steel 7.875% 2/15/09 100,000 100,500
Bowater
9.00% 8/1/09 50,000 52,313
9.50% 10/15/12 75,000 76,313
CPG International I
10.50% 7/1/13 30,000 30,675
Donohue Forest Products
7.625% 5/15/07 65,000 65,325
Georgia-Pacific
9.50% 12/1/11 50,000 55,250
Gold Kist 10.25% 3/15/14 65,000 74,913
# Hexion Specialty 144A
9.75% 11/15/14 75,000 76,500
Huntsman International
10.125% 7/1/09 25,000 25,500
Lyondell Chemical
8.00% 9/15/14 60,000 62,175
8.25% 9/15/16 75,000 78,375
10.50% 6/1/13 10,000 11,050
*# Nell AF Sarl 144A
8.375% 8/15/15 75,000 77,156
NewPage
10.00% 5/1/12 100,000 105,750
* 12.00% 5/1/13 50,000 53,000
Norske Skog Canada
8.625% 6/15/11 125,000 126,874
# Port Townsend Paper 144A
11.00% 4/15/11 100,000 88,000
Potlatch 13.00% 12/1/09 85,000 99,373
# Sappi Papier Holding 144A
7.50% 6/15/32 100,000 93,200
+ Solutia 6.72% 10/15/37 100,000 89,000
Tembec Industries
8.625% 6/30/09 195,000 126,262
Witco 6.875% 2/1/26 60,000 53,700
____________
1,665,404
____________
Brokerage - 0.55%
E Trade Financial
8.00% 6/15/11 65,000 67,763
LaBranche & Co.
9.50% 5/15/09 90,000 95,175
11.00% 5/15/12 100,000 108,500
~ Lehman Brothers Capital
Funding II
3.875% 2/28/49 EUR 100,000 129,642
____________
401,080
____________
Capital Goods - 1.15%
Armor Holdings
8.25% 8/15/13 USD 50,000 52,125
# Berry Plastics Holding 144A
8.875% 9/15/14 60,000 60,825
*# Bombardier 144A
8.00% 11/15/14 75,000 75,750
* Graham Packaging
9.875% 10/15/14 125,000 124,375
Interface 10.375% 2/1/10 100,000 109,750
Intertape Polymer
8.50% 8/1/14 115,000 106,375
# Momentive Performance
Materials 144A
9.75% 12/1/14 100,000 100,750
IMueller Holdings
14.75% 4/15/14 39,000 34,515
* INTK Holdings
10.75% 3/1/14 75,000 52,125
*# RBS Global & Rexnord 144A
11.75% 8/1/16 50,000 52,875
* Trimas 9.875% 6/15/12 65,000 62,725
____________
832,190
____________
Consumer Cyclical - 2.33%
Accuride 8.50% 2/1/15 65,000 62,563
# Baker & Taylor 144A
11.50% 7/1/13 50,000 50,313
Carrols 9.00% 1/15/13 50,000 50,750
* Denny's 10.00% 10/1/12 65,000 68,494
Ford Motor Credit
4.875% 1/15/10 EUR 116,000 146,353
5.75% 1/12/09 EUR 172,000 223,973
7.375% 10/28/09 USD 75,000 74,923
9.875% 8/10/11 70,000 74,960
* General Motors
8.375% 7/15/33 60,000 54,975
General Motors Acceptance
Corporation
6.875% 9/15/11 100,000 103,061
7.50% 12/1/06 NZD 363,000 248,400
* 8.00% 11/1/31 USD 55,000 61,823
Landry's Restaurant
7.50% 12/15/14 50,000 48,875
*# Michaels Stores 144A
11.375% 11/1/16 50,000 51,500
# Mobile Services Group 144A
9.75% 8/1/14 60,000 62,700
14
Principal Market
Amount o Value (U.S.$)
______________________________________________________________________________
Corporate Bonds (continued)
______________________________________________________________________________
Consumer Cyclical (continued)
Neiman Marcus
9.00% 10/15/15 USD 55,000 $ 59,881
* 10.375% 10/15/15 20,000 22,225
*# NPC International 144A
9.50% 5/1/14 50,000 50,500
* O'Charleys 9.00% 11/1/13 50,000 52,750
# United Auto Group 144A
7.75% 12/15/16 75,000 75,000
* Visteon 8.25% 8/1/10 50,000 48,875
____________
1,692,894
____________
Consumer Non-Cyclical - 1.76%
Biovail 7.875% 4/1/10 175,000 177,187
Constellation Brands
8.125% 1/15/12 200,000 209,499
Cott Beverages
8.00% 12/15/11 75,000 76,875
Ingles Markets
8.875% 12/1/11 100,000 104,750
National Beef Packing
10.50% 8/1/11 100,000 105,000
Pilgrim's Pride
9.625% 9/15/11 90,000 94,950
* Pinnacle Foods
8.25% 12/1/13 75,000 76,875
Playtex Products
9.375% 6/1/11 105,000 109,988
Procter & Gamble
2.00% 6/21/10 JPY 17,000,000 151,109
* Swift & Co. 12.50% 1/1/10 USD 55,000 56,650
True Temper Sports
8.375% 9/15/11 45,000 40,388
Warner Chilcott
8.75% 2/1/15 70,000 72,100
____________
1,275,371
____________
Energy - 1.36%
* Bluewater Finance
10.25% 2/15/12 55,000 58,025
Chesapeake Energy
6.625% 1/15/16 20,000 19,850
# Complete Production
Services 144A
8.00% 12/15/16 50,000 50,750
Compton Petroleum Finance
7.625% 12/1/13 95,000 90,724
El Paso Natural Gas
7.625% 8/1/10 50,000 52,000
# El Paso Performance-Linked
Trust 144A
7.75% 7/15/11 45,000 46,800
El Paso Production
7.75% 6/1/13 50,000 52,063
# Hilcorp Energy I 144A
7.75% 11/1/15 20,000 19,800
*9.00% 6/1/16 75,000 79,313
Inergy Finance
6.875% 12/15/14 50,000 48,750
8.25% 3/1/16 20,000 20,950
Mariner Energy
7.50% 4/15/13 50,000 48,750
# MarkWest Energy 144A
8.50% 7/15/16 30,000 30,450
PetroHawk Energy
9.125% 7/15/13 250,000 261,562
~ Secunda International
13.374% 9/1/12 55,000 57,063
Whiting Petroleum
7.25% 5/1/13 50,000 50,250
____________
987,100
____________
Finance & Investments - 1.71%
ASIF III Jersey 0.95% 7/15/09 JPY 17,000,000 146,362
~ Fortis Capital 6.25% 6/29/49 EUR 100,000 138,807
GE Capital UK Funding
4.625% 1/18/16 GBP 64,000 120,608
General Electric Capital
5.125% 1/28/14 SEK 1,000,000 156,244
General Motors Acceptance
International Finance
4.125% 2/6/07 EUR 120,000 158,873
*# iPayment 144A
9.75% 5/15/14 USD 40,000 41,100
Red Arrow International
Leasing 8.375% 3/31/12 RUB 2,225,494 88,673
Residential Capital
5.125% 5/17/12 EUR 170,000 229,971
6.375% 5/17/13 GBP 80,000 160,287
____________
1,240,925
____________
Media - 1.54%
} Adelphia Communications
8.125% 2/1/07 USD 90,000 77,400
* CCH I Holdings
13.50% 1/15/14 75,000 70,875
*} Century Communications
9.50% 2/1/07 125,000 150,000
Charter Communication
Holdings
13.50% 1/15/11 205,000 198,850
~# Cleveland Unlimited 144A
13.64% 12/15/10 15,000 16,200
# CMP Susquehanna 144A
9.875% 5/15/14 25,000 24,688
Dex Media East
12.125% 11/15/12 55,000 61,050
# Idearc 144A 8.00% 11/15/16 45,000 45,956
Insight Communications
12.25% 2/15/11 25,000 26,344
* Lodgenet Entertainment
9.50% 6/15/13 115,000 123,625
(continues) 15
Statement of net assets
Delaware Investments Global Dividend and Income Fund, Inc.
Principal Market
Amount o Value (U.S.$)
______________________________________________________________________________
Corporate Bonds (continued)
______________________________________________________________________________
Media (continued)
Mediacom Broadband
8.50% 10/15/15 USD 45,000 $ 45,281
* Mediacom Capital
9.50% 1/15/13 150,000 154,875
* Vertis 10.875% 6/15/09 40,000 40,000
* Warner Music Group
7.375% 4/15/14 80,000 79,600
____________
1,114,744
____________
Real Estate - 0.28%
American Real Estate
Partners 8.125% 6/1/12 65,000 67,356
BF Saul REIT 7.50% 3/1/14 110,000 112,201
Rouse 7.20% 9/15/12 20,000 20,810
____________
200,367
____________
Services Cyclical - 3.28%
Adesa 7.625% 6/15/12 125,000 124,687
American Airlines
7.377% 5/23/19 33,617 32,819
Boyd Gaming 8.75% 4/15/12 95,000 99,988
Brickman Group
11.75% 12/15/09 130,000 138,774
* Continental Airlines
8.75% 12/1/11 45,000 45,506
Corrections Corporation of
America 7.50% 5/1/11 55,000 56,788
FTI Consulting 7.625% 6/15/13 100,000 103,750
*# Galaxy Entertainment
Finance 144A
9.875% 12/15/12 100,000 107,250
Gaylord Entertainment
8.00% 11/15/13 65,000 66,788
Grupo Transportacion
Ferroviaria Mexicana de C.V.
9.375% 5/1/12 100,000 107,499
12.50% 6/15/12 30,000 32,775
{ H-Lines Finance Holdings
11.00% 4/1/13 138,000 128,167
Harrah's Operating
6.50% 6/1/16 100,000 89,453
# Hertz 144A 8.875% 1/1/14 60,000 62,550
* Horizon Lines
9.00% 11/1/12 44,000 46,310
Kansas City Southern
Railway 9.50% 10/1/08 50,000 52,563
# Knowledge Learning 144A
7.75% 2/1/15 65,000 61,750
Majestic Star Casino
9.50% 10/15/10 70,000 72,625
Mandalay Resort Group
9.375% 2/15/10 120,000 128,099
9.50% 8/1/08 50,000 53,063
OMI 7.625% 12/1/13 80,000 82,100
# Penhall International 144A
12.00% 8/1/14 50,000 54,250
Penn National Gaming
6.75% 3/1/15 30,000 29,625
# Pokagon Gaming Authority
144A 10.375% 6/15/14 110,000 119,899
# Rental Services 144A
9.50% 12/1/14 95,000 96,663
Seabulk International
9.50% 8/15/13 50,000 54,438
* Stena 9.625% 12/1/12 90,000 96,638
{ Town Sports International
11.00% 2/1/14 65,000 54,438
# Turning Stone Resort Casino
144A 9.125% 9/15/14 50,000 51,375
Wheeling Island Gaming
10.125% 12/15/09 125,000 127,812
____________
2,378,442
____________
Services Non-Cyclical - 1.38%
Casella Waste Systems
9.75% 2/1/13 150,000 157,500
* CRC Health 10.75% 2/1/16 105,000 112,613
* Geo Subordinate
11.00% 5/15/12 70,000 67,900
* HCA
6.50% 2/15/16 85,000 70,763
# 144A 9.625% 11/15/16 80,000 84,200
*# Healthsouth 144A
10.75% 6/15/16 175,000 187,249
US Oncology
10.75% 8/15/14 100,000 111,000
{ Vanguard Health
11.25% 10/1/15 175,000 133,875
# WCA Waste 144A
9.25% 6/15/14 75,000 78,375
____________
1,003,475
____________
Technology & Electronics - 1.28%
# Freescale Semiconductor 144A
PIK 9.125% 12/15/14 55,000 55,275
10.125% 12/15/16 195,000 198,169
International Business
Machines 4.00% 11/11/11 EUR 200,000 265,214
* Solectron Global
8.00% 3/15/16 USD 35,000 35,700
* Sungard Data Systems
10.25% 8/15/15 55,000 58,575
# Mercury Interactive 144A
4.75% 7/1/07 275,000 278,781
# UGS Capital II PIK 144A
10.38% 6/1/11 36,766 37,226
____________
928,940
____________
16
Principal Market
Amount o Value (U.S.$)
______________________________________________________________________________
Corporate Bonds (continued)
______________________________________________________________________________
Telecommunications - 2.04%
* American Tower
7.125% 10/15/12 USD 80,000 $ 82,200
American Towers
7.25% 12/1/11 25,000 26,000
# Broadview Networks
Holdings 144A
11.375% 9/1/12 50,000 52,250
* Cincinnati Bell
8.375% 1/15/14 35,000 35,963
*# Cricket Communications
144A 9.375% 11/1/14 65,000 66,788
*# Hughes Network Systems
144A 9.50% 4/15/14 155,000 161,587
{ Inmarsat Finance
10.375% 11/15/12 140,000 128,624
~ IWO Holdings
9.124% 1/15/12 15,000 15,375
*# Level 3 Financing 144A
9.25% 11/1/14 75,000 76,219
# MetroPCS Wireless 144A
9.25% 11/1/14 35,000 35,744
Qwest
# 144A 7.50% 10/1/14 100,000 106,750
~ 8.64% 6/15/13 65,000 70,769
Rural Cellular
9.875% 2/1/10 75,000 79,688
*~ 11.121% 11/1/12 50,000 52,250
Triton Communications
8.50% 6/1/13 40,000 38,800
9.375% 2/1/11 315,000 285,074
~ US LEC 13.87% 10/1/09 50,000 53,313
*# Wind Acquisition 144A
10.75% 12/1/15 100,000 113,250
____________
1,480,644
____________
Utilities - 0.92%
++# Calpine 144A
8.496% 7/15/07 68,425 75,096
Elwood Energy
8.159% 7/5/26 102,656 108,522
Hydro Quebec
10.50% 10/15/21 CAD 55,000 79,386
Midwest Generation
8.30% 7/2/09 USD 99,175 100,911
8.75% 5/1/34 90,000 98,100
Mirant North America
7.375% 12/31/13 125,000 127,187
Orion Power 12.00% 5/1/10 70,000 79,625
=#++ USGen New England 144A
7.459% 1/2/15 1,126 760
____________
669,587
____________
Total Corporate Bonds
(cost $16,153,052) 16,642,378
____________
______________________________________________________________________________
Foreign Agencies - 2.82%
______________________________________________________________________________
Austria - 0.29%
Oesterreichische Kontrollbank
1.80% 3/22/10 JPY 24,000,000 212,822
____________
212,822
____________
Germany - 2.26%
KFW
1.75% 3/23/10 JPY 17,000,000 150,513
3.50% 7/4/21 EUR 328,000 414,721
4.75% 12/7/10 GBP 77,000 149,445
4.95% 10/14/14 CAD 85,000 78,245
8.25% 9/20/07 ISK 50,000,000 701,407
Rentenbank 1.375% 4/25/13 JPY 17,000,000 146,695
____________
1,641,026
____________
Luxembourg - 0.27%
Gazprom 4.56% 12/9/12 EUR 150,000 196,440
____________
196,440
____________
Total Foreign Agencies
(cost $2,015,074) 2,050,288
____________
______________________________________________________________________________
Regional Agency - 0.26%
______________________________________________________________________________
Australia - 0.26%
New South Wales Treasury
6.00% 5/1/12 AUD 242,000 190,110
____________
Total Regional Agency
(cost $186,212) 190,110
____________
______________________________________________________________________________
Regional Authority - 0.21%
______________________________________________________________________________
Canada - 0.21%
Ontario Province
4.50% 3/8/15 CAD 89,000 80,014
5.375% 12/2/12 CAD 81,000 76,075
____________
Total Regional Authority
(cost $152,552) 156,089
____________
______________________________________________________________________________
<< Senior Secured Loan - 0.06%
______________________________________________________________________________
HCA 8.086% 11/18/13 USD 40,000 40,288
____________
Total Senior Secured Loan
(cost $40,000) 40,288
____________
______________________________________________________________________________
Sovereign Agencies - 0.31%
______________________________________________________________________________
France - 0.08%
Caisse d'Amortissement
de la Dette Sociale
3.625% 4/25/16 EUR 44,000 57,591
____________
57,591
____________
Japan - 0.23%
Development Bank of Japan
1.70% 9/20/22 JPY 21,000,000 171,068
____________
171,068
____________
Total Sovereign Agencies
(cost $234,565) 228,659
____________
(continues) 17
Statement of net assets
Delaware Investments Global Dividend and Income Fund, Inc.
Principal Market
Amount o Value (U.S.$)
______________________________________________________________________________
Sovereign Debt - 10.14%
______________________________________________________________________________
Austria - 0.79%
Republic of Austria
# 144A 4.00% 9/15/16 EUR 350,000 $ 474,267
5.25% 1/4/11 EUR 70,000 98,310
____________
572,577
____________
France - 1.51%
France Government O.A.T.
4.00% 4/25/55 EUR 470,000 645,664
French Treasury Note
2.75% 3/12/08 EUR 345,000 451,624
____________
1,097,288
____________
Germany - 1.04%
Deutschland Republic
4.75% 7/4/08 EUR 184,000 247,647
6.25% 1/4/24 EUR 292,000 503,840
Deutschland Republic
Inflation Linked
1.50% 4/15/16 EUR 2,188 2,878
____________
754,365
____________
Japan - 2.57%
Japan Government 5 yr
Bond 1.50% 6/20/11 JPY 51,400,000 451,007
Japan Government 10 yr
Bond 1.90% 6/20/16 JPY 83,600,000 739,483
Japan Government 20 yr
Bond 2.30% 6/20/26 JPY 51,000,000 454,750
Japan Government CPI
Linked 10 yr Bond 0.80%
3/10/16 JPY 26,431,500 222,276
____________
1,867,516
____________
Malaysia - 0.41%
Malaysian Government
3.756% 4/28/11 MYR 535,000 148,207
7.00% 3/15/09 MYR 509,000 150,453
____________
298,660
____________
Norway - 1.67%
Norwegian Government
5.00% 5/15/15 NOK 4,531,000 778,628
6.00% 5/16/11 NOK 888,000 154,972
6.50% 5/15/13 NOK 1,527,000 280,541
____________
1,214,141
____________
Poland - 0.63%
Poland Government
6.00% 11/24/10 PLN 850,000 306,263
6.25% 10/24/15 PLN 410,000 153,321
____________
459,584
____________
Republic of Korea - 0.26%
Government of South Korea
4.25% 12/7/21 EUR 140,000 185,227
____________
185,227
____________
Sweden - 0.44%
Sweden Government
5.50% 10/8/12 SEK 2,000,000 321,010
____________
321,010
____________
United Kingdom - 0.82%
U.K. Treasury
4.75% 3/7/20 GBP 77,000 156,271
5.00% 3/7/12 GBP 27,000 53,755
8.00% 6/7/21 GBP 84,000 227,626
9.00% 7/12/11 GBP 67,000 154,318
____________
591,970
____________
Total Sovereign Debt
(cost $7,111,442) 7,362,338
____________
______________________________________________________________________________
Supranational Banks - 1.90%
______________________________________________________________________________
Asia Development Bank
0.50% 10/9/12 AUD 199,000 114,277
European Investment Bank
* 1.40% 6/20/17 JPY 55,300,000 466,266
4.00% 10/15/37 EUR 65,000 86,606
4.25% 12/7/10 GBP 173,000 329,744
Inter-American Development
Bank 1.90% 7/8/09 JPY 34,000,000 301,267
^ International Bank for
Reconstruction &
Development
7.122% 8/20/07 NZD 121,000 78,614
____________
Total Supranational Banks
(cost $1,347,743) 1,376,774
____________
Number of
Shares
______________________________________________________________________________
Warrant - 0.00%
______________________________________________________________________________
+# Solutia 144A, exercise price
$7.59, expiration date
7/15/09 130 -
____________
Total Warrant
(cost $11,059) -
____________
Principal
Amount
______________________________________________________________________________
Repurchase Agreements - 3.10%
______________________________________________________________________________
With BNP Paribas
5.26% 12/1/06 (dated
11/30/06, to be repurchased
at $993,045, collateralized
by $1,020,400 U.S. Treasury
Notes 2.75% due 8/15/07,
market value $1,013,439) USD 992,900 992,900
With Cantor Fitzgerald
5.26% 12/1/06 (dated
11/30/06, to be repurchased
at $605,588, collateralized
by $490,970 U.S. Treasury
Bills due 12/28/06, market
value $489,197 and
$126,020 U.S. Treasury
Notes 6.25% due 2/15/07,
market value $128,603) 605,500 605,500
18
Principal Market
Amount o Value (U.S.$)
______________________________________________________________________________
Repurchase Agreements (continued)
______________________________________________________________________________
With UBS Warburg
5.26% 12/1/06 (dated
11/30/06, to be
repurchased at $654,696,
collateralized by $684,140
U.S. Treasury Bills due
5/24/07, market value
$668,138) USD 654,600 $ 654,600
Total Repurchase Agreements
(cost $2,253,000) 2,253,000
Total Market Value of Securities Before
Securities Lending Collateral - 129.56%
(cost $81,070,070) 94,046,325
____________
______________________________________________________________________________
Securities Lending Collateral ** - 14.46%
______________________________________________________________________________
Short-Term Investments - 14.46%
Fixed Rate Notes - 1.50%
Citigroup Global Markets
5.32% 12/1/06 640,377 640,377
Credit Suisse First Boston
5.29% 12/13/06 444,756 444,756
____________
1,085,133
____________
~ Variable Rate Notes - 12.96%
American Honda Finance
5.32% 2/21/07 285,915 285,915
ANZ National
5.32% 12/31/07 63,537 63,537
Australia New Zealand
5.32% 12/31/07 317,683 317,683
Bank of America
5.32% 2/23/07 412,988 412,988
Bank of New York
5.31% 12/31/07 254,146 254,146
Barclays New York
5.31% 5/18/07 412,988 412,988
Bayerische Landesbank
5.37% 12/31/07 317,683 317,683
Bear Stearns 5.38% 5/31/07 381,220 381,220
BNP Paribas 5.35% 12/31/07 317,683 317,683
Canadian Imperial Bank
5.30% 12/31/07 158,842 158,842
CDC Financial 5.36% 1/2/07 412,988 412,988
Citigroup Global Markets
5.38% 12/7/06 412,988 412,988
Commonwealth Bank
5.32% 12/31/07 317,683 317,683
Deutsche Bank
5.34% 2/23/07 381,220 381,220
Dexia Bank 5.33% 9/28/07 444,741 444,669
Goldman Sachs
5.45% 11/30/07 412,988 412,988
Marshall & Ilsley Bank
5.30% 12/31/07 349,451 349,451
Merrill Lynch Mortgage
Capital 5.41% 1/8/07 412,988 412,988
Morgan Stanley
5.49% 12/31/07 412,988 412,988
National Australia Bank
5.29% 3/7/07 393,927 393,927
National City Bank
5.32% 3/2/07 381,254 381,289
National Rural Utilities
5.31% 12/31/07 501,939 501,939
Nordea Bank New York
5.31% 5/16/07 158,841 158,838
Nordea Bank Norge
5.33% 12/31/07 317,683 317,683
Royal Bank of Scotland
5.31% 12/31/07 317,683 317,683
Societe Generale
5.29% 12/31/07 158,842 158,841
Toronto Dominion
5.32% 5/29/07 381,220 381,220
Wells Fargo 5.33% 12/31/07 317,683 317,683
____________
9,409,751
____________
Total Securities Lending Collateral
(cost $10,494,884) 10,494,884
____________
Total Market Value of Securities - 144.02%
(cost $91,564,954) 104,541,209 !
Obligation to Return Securities Lending
Collateral ** - (14.46%) (10,494,884)
Borrowing Under Line of Credit - (31.69%) (23,000,000)
Receivables and Other Assets Net
of Liabilities - 2.13% 1,543,894
____________
Net Assets Applicable to 5,463,746
Shares Outstanding; Equivalent to $13.29
per Share - 100.00% $ 72,590,219
____________
Components of Net Assets at November 30, 2006:
Common stock, $0.01 par value, 500,000,000
shares authorized to the Fund $ 58,693,534
Distributions in excess of net investment income (229,991)
Accumulated net realized gain on investments 1,137,580
Net unrealized appreciation of investments
and foreign currencies 12,989,096
____________
Total net assets $ 72,590,219
____________
(continues) 19
Statement of net assets
Delaware Investments Global Dividend and Income Fund, Inc.
_______________________________________________________________________________
_______________________________________________________________________________
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
MYR - Malaysia Ringgit
NOK - Norwegian Kroner
NZD - New Zealand Dollar
PLN - Polish Zloty
RUB - Russian Rubles
SEK - Swedish Kroner
TRY - Turkish Lira
USD - United States Dollar
ZAR - South African Rand
* Fully or partially on loan.
** See Note 9 in "Notes to Financial Statements."
! Includes $10,255,559 of securities loaned.
~ Variable rate security. The rate shown is the rate as of November 30, 2006.
+ Non-income producing security for the year ended November 30, 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 is effect at November 30, 2006.
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 November 30, 2006, the aggregate
amount of the restricted securities equaled $0 or 0.00% of the Fund's net
assets. See Note 10 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.
# Security exempt from registration under Rule 144A of the Securities Act of
1933, as amended. At November 30, 2006, the aggregate amount of Rule 144A
securities equaled $6,205,914, which represented 8.55% of the Fund's net
assets. See Note 10 in "Notes to Financial Statements."
^ Zero coupon security. The interest rate shown is the yield at the time of
purchase.
= Security is being fair valued in accordance with the Fund's fair valuation
policy. At November 30, 2006, the aggregate amount of fair valued securities
equaled $0, which represented 0.00% of the Fund's net assets. See Note 1 in
"Notes to Financial Statements."
( Securities have been classified by type of business. Classification by
country of origin has been presented in Sector and Country Allocation on
pages 8 and 9.
@ Illiquid security. At November 30, 2006, the aggregate amount of illiquid
securities equals $0, which represented 0.00% of the Fund's net assets. See
Note 10 in "Notes to Financial Statements."
<< Senior Secured Loans generally pay interest at rates which are periodically
redetermined by reference to a base lending rate plus a premium. These base
lending rates are generally (i) the prime rate offered by one or more United
States banks, (ii) the lending rate offered by one or more European banks
such as the London Inter-Bank Offered Rate ('LIBOR') and (iii) the
certificate of deposit rate. Senior Secured Loans may be subject to
restrictions on resale.
Summary of Abbreviations:
ADR - American Depositary Receipt
CPI - Consumer Price Index
O.A.T. - Obligation Assimilable au Tresor (Treasury Obligation)
PIK - Payment-in-kind
REIT - Real Estate Investment Trust
yr - Year
The following foreign currency exchange contracts and foreign cross-currency
exchange contracts were outstanding at November 30, 2006:
Foreign Currency Exchange Contracts and Foreign
Cross-Currency Exchange Contracts (1)
In Unrealized
Contracts to Exchange Settlement Appreciation
Receive (Deliver) For Date (Depreciation)
_________________ ________________ __________ ______________
AUD 326,902 JPY (29,493,220) 1/11/07 $1,307
AUD (65,000) USD 51,279 12/4/06 -
CAD (2,000) USD 1,752 12/4/06 2
EUR 203,437 AUD (340,000) 1/11/07 2,038
EUR 436,112 GBP (295,000) 1/11/07 (1,298)
EUR 331,913 ISK (30,682,000) 1/11/07 (4,364)
EUR 179,082 NZD (353,000) 1/11/07 (3,249)
EUR 255,182 PLN (977,067) 1/11/07 (911)
EUR (185,391) USD 244,066 1/11/07 (2,030)
EUR (77,000) USD 101,971 12/4/06 (15)
JPY 195,102,234 EUR (1,285,903) 1/11/07 (9,695)
NOK (19,000) USD 3,084 12/4/06 (1)
NZD (32,000) USD 21,894 12/4/06 (1)
JPY (996,656) USD 8,397 12/1/06 (213)
PLN (100,000) USD 34,668 12/4/06 (34)
SEK (60,000) USD 8,758 12/4/06 (4)
ZAR (19,800) USD 2,763 12/4/06 -
ZAR 495,466 EUR (54,900) 1/11/07 (2,357)
________
$(20,825)
________
The use of foreign currency exchange contracts involves elements of market risks
in excess of the amounts recognized in the financial statements. The notional
amounts presented above represent the Fund's total exposure in such contracts,
whereas only the net unrealized appreciation (depreciation) is reflected in the
Fund's net assets.
(1) See Note 8 in "Notes to Financial Statements."
20
Statement of operations
Delaware Investments Global Dividend and Income Fund, Inc.
Year Ended November 30, 2006
Investment Income:
Dividends $1,730,921
Interest 1,949,788
Securities lending income 38,197
Foreign tax withheld (38,646) $ 3,680,260
__________ ___________
Expenses:
Management fees 633,751
Reports to shareholders 59,074
Transfer agent fees 43,977
Accounting and administration expenses 36,217
Custodian fees 32,597
NYSE fees 25,001
Legal fees 22,921
Pricing fees 15,158
Audit and tax 13,305
Directors' fees and benefits 12,297
Taxes (other than taxes on income) 8,467
Dues & services 6,998
Consulting fees 2,267
Insurance fees 1,445
Leverage expenses 1,402
Registration fees 713
Directors' expenses 230
__________
Total operating expenses (before interest expense) 915,820
Interest expense 1,271,046
___________
Total expenses 2,186,866
___________
Net Investment Income 1,493,394
___________
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currencies:
Net realized gain (loss) on:
Investments 4,981,915
Foreign currencies (342,169)
Options on foreign currencies (42,363)
___________
Net realized gain 4,597,383
Net change in unrealized appreciation/depreciation of investments and foreign currencies 8,678,243
___________
Net Realized and Unrealized Gain on Investments and Foreign Currencies 13,275,626
___________
Net Increase in Net Assets Resulting from Operations $14,769,020
___________
See accompanying notes
21
Statements of changes in net assets
Delaware Investments Global Dividend and Income Fund, Inc.
Year Ended
11/30/06 11/30/05
Increase (Decrease) in Net Assets from Operations:
Net investment income $ 1,493,394 $ 2,218,197
Net realized gain on investments and foreign currencies 4,597,383 14,865,212
Net change in unrealized appreciation/depreciation of investments and foreign currencies 8,678,243 (13,767,017)
____________ ____________
Net increase in net assets resulting from operations 14,769,020 3,316,392
____________ ____________
Dividends and Distributions to Shareholders from: (1)
Net investment income (1,727,584) (2,295,845)
Net realized gains (12,532,793) (3,241,579)
____________ ____________
(14,260,377) (5,537,424)
____________ ____________
Capital Share Transactions:
Cost of shares repurchased (2) - (7,018,700)
____________ ____________
- (7,018,700)
____________ ____________
Net Increase (Decrease) in Net Assets 508,643 (9,239,732)
Net Assets:
Beginning of year 72,081,576 81,321,308
____________ ____________
End of year (including distributions in excess of net investment income and
undistributed net investment income of ($229,991) and $5,103, respectively) $ 72,590,219 $ 72,081,576
____________ ____________
(1) See Note 4 in "Notes to Financial Statements."
(2) See Note 6 in "Notes to Financial Statements."
See accompanying notes
22
Statement of cash flows
Delaware Investments Global Dividend and Income Fund, Inc.
Year Ended November 30, 2006
Net Cash (Including Foreign Currency) Provided by Operating Activities:
Net increase in net assets resulting from operations $ 14,769,020
____________
Adjustments to reconcile net increase in net assets from operations to cash provided by operating activities:
Amortization of premium and discount on investments purchased 58,693
Net proceeds from investment transactions 14,035,629
Net realized gain from investment transactions (4,981,915)
Net realized loss on foreign currencies 384,532
Net change in unrealized appreciation/depreciation of investments (8,678,243)
Increase in receivable for investments sold (535,991)
Decrease in interest and dividends receivable and other assets 48,100
Decrease in payable for investments purchased (333,835)
Increase in interest payable 37,484
Increase in accrued expenses and other liabilities 1,377
____________
Total adjustments 35,831
____________
Net cash provided by operating activities 14,804,851
____________
Cash Flows Used for Financing Activities:
Cash dividends and distributions paid (14,260,377)
____________
Net cash used for financing activities (14,260,377)
____________
Effect of exchange rates on cash (82,417)
____________
Net increase in cash 462,057
Cash at beginning of year 60,742
____________
Cash at end of year $ 522,799
____________
Cash paid for interest expense for leverage $ 1,233,563
____________
See accompanying notes
23
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:
Year Ended
_______________________________________________________________
11/30/06 11/30/05 11/30/04 11/30/03 11/30/02
____________________________________________________________________________________________________________________________________
Net asset value, beginning of period $13.190 $13.590 $11.980 $9.940 $11.170
Income (loss) from investment operations:
Net investment income (1) 0.273 0.384 0.416 0.554 0.499
Net realized and unrealized gain (loss) on investments
and foreign currencies 2.437 0.176 2.154 2.570 (0.260)
________ ________ ________ ________ ________
Total from investment operations 2.710 0.560 2.570 3.124 0.239
________ ________ ________ ________ ________
Less dividends and distributions from:
Net investment income (0.316) (0.398) (0.815) (0.918) (0.365)
Net realized gain on investments (2.294) (0.562) (0.145) - -
Return of capital - - - (0.166) (1.104)
________ ________ ________ ________ ________
Total dividends and distributions (2.610) (0.960) (0.960) (1.084) (1.469)
________ ________ ________ ________ ________
Net asset value, end of period $13.290 $13.190 $13.590 $11.980 $ 9.940
________ ________ ________ ________ ________
Market value, end of period $13.800 $13.400 $12.300 $11.900 $10.400
________ ________ ________ ________ ________
Total return based on: (2)
Market value 24.39% 17.22% 12.01% 25.92% (5.49%)
Net asset value 21.61% 4.43% 22.92% 32.63% 0.28%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $72,590 $72,082 $81,321 $71,693 $59,523
Ratio of expenses to average net assets 3.24% 2.59% 1.92% 2.04% 2.26%
Ratio of expenses to adjusted average net assets
(before interest expense) (3) 1.01% 1.13% 0.98% 1.08% 1.06%
Ratio of interest expense to adjusted average net assets (3) 1.40% 0.87% 0.46% 0.46% 0.64%
Ratio of net investment income to average net assets 2.21% 2.84% 3.31% 5.14% 4.69%
Ratio of net investment income to adjusted average net assets (3) 1.65% 2.19% 2.48% 3.88% 3.53%
Portfolio turnover 76% 121% 78% 99% 69%
Leverage Analysis:
Debt outstanding at end of period at par (000 omitted) $23,000 $23,000 $25,000 $21,000 $21,000
Average daily balance of debt outstanding (000 omitted) $23,000 $24,195 $24,410 $21,000 $21,603
Average daily balance of shares outstanding (000 omitted) 5,464 5,777 5,986 5,986 5,986
Average debt per share $4.21 $4.19 $4.08 $3.51 $3.61
Asset coverage per $1,000 of debt outstanding at end of period $4,156 $4,134 $4,253 $4,414 $3,834
____________________________________________________________________________________________________________________________________
(1) The average shares outstanding method has been applied for per share information.
(2) 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.
(3) Adjusted average net assets excludes debt outstanding.
See accompanying notes
24
Notes to financial statements
Delaware Investments Global Dividend and Income Fund, Inc.
November 30, 2006
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 (NYSE) 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 NYSE on the valuation date. Securities traded on the
Nasdaq are valued in accordance with the Nasdaq Official Closing Price, which
may not be the last sales price. If on a particular day an equity security does
not trade, then the mean between the bid and asked prices will be used.
Securities listed on a foreign exchange are normally valued at the last quoted
sales price before the Fund is valued. U.S. government and agency securities are
valued at the mean between the bid and asked prices. Long-term debt securities
are valued by an independent pricing service and such prices are believed to
reflect the fair value of such securities. Short-term debt securities having
less than 60 days to maturity are valued at amortized cost, which approximates
market value. Securities lending collateral is valued at amortized cost, which
approximates market value. Foreign currency exchange contracts and 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).
In September 2006, the Financial Accounting Standards Board (FASB) issued FASB
Statement No. 157, Fair Value Measurements, (Statement 157). Statement 157
establishes a framework for measuring fair value in generally accepted
accounting principles, clarifies the definition of fair value within that
framework, and expands disclosures about the use of fair value measurements.
Statement 157 is intended to increase consistency and comparability among fair
value estimates used in financial reporting. Statement 157 is effective for
fiscal years beginning after November 15, 2007. Management does not expect the
adoption of Statement 157 to have an impact on the amounts reported in the
financial statements.
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.
On July 13, 2006, FASB released FASB Interpretation No. 48 "Accounting for
Uncertainty in Income Taxes" (FIN 48). FIN 48 provides guidance for how
uncertain tax positions should be recognized, measured, presented and disclosed
in the financial statements. FIN 48 requires the evaluation of tax positions
taken or expected to be taken in the course of preparing the Fund's tax returns
to determine whether the tax positions are "more-likely-than-not" of being
sustained by the applicable tax authority. Tax positions not deemed to meet the
more-likely-than-not threshold would be recorded as a tax benefit or expense in
the current year. Adoption of FIN 48 is required for fiscal years beginning
after December 15, 2006 and is to be applied to all open tax years as of the
effective date. Although the Fund's tax positions are currently being evaluated,
management does not expect the adoption of FIN 48 to have a material impact on
the Fund's 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 to the extent permitted and, if
necessary, a return of capital. The current annualized rate is $0.96 per share.
The Fund continues to evaluate its monthly distribution in light of ongoing
economic and market conditions and may change the amount of the monthly
distributions in the future.
Foreign Currency Transactions - Transactions denominated in foreign currencies
are recorded at the prevailing exchange rates on the valuation date. The value
of all assets and liabilities denominated in foreign currencies are translated
into U.S. dollars at the exchange rate of such currencies against the U.S.
dollar daily. Transaction gains or losses resulting from changes in exchange
rates during the reporting period or upon settlement of the foreign currency
transaction are reported in operations for the current period. The Fund isolates
that portion of realized gains and losses on investments in debt securities,
which are due to changes in foreign exchange rates from that which are due to
changes in market prices of debt securities. For foreign equity securities,
these changes are included in realized gains (losses) on investments. The Fund
reports certain foreign currency related transactions as components of realized
gains (losses) for financial reporting purposes, where such components are
treated as ordinary income (loss) for federal income tax purposes.
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
(continues) 25
Notes to financial statements
Delaware Investments Global Dividend and Income Fund, Inc.
1. Significant Accounting Policies (continued)
agreements. Each repurchase agreement is at least 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 directly attributable to the Fund are charged directly to the
Fund. Other expenses common to various funds within the Delaware
Investments(R) Family of Funds are generally allocated amongst such funds on
the basis of average net assets. Management fees and some other expenses are
paid monthly. Security transactions are recorded on the date the securities are
purchased or sold (trade date) for financial reporting purposes. Costs used in
calculating realized gains and losses on the sale of investment securities are
those of the specific securities sold. Dividend income is recorded on the
ex-dividend date and interest income is recorded on the accrual basis. Discounts
and premiums on non-convertible securities are amortized to interest income over
the lives of the respective securities. Foreign dividends are also recorded on
the ex-dividend date or as soon after the ex-dividend date that the Fund is
aware of such dividends, net of all non-rebatable tax withholdings. Withholding
taxes on foreign dividends have been provided for in accordance with the Fund's
understanding of the applicable country's tax rules and rates. Distributions
received from investments in Real Estate Investment Trusts (REITs) are recorded
as dividend income on the ex-dividend date, subject to reclassification upon
notice of the character of such distribution by the issuer.
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 investments in the accompanying financial statements and totaled $381
for the year ended November 30, 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 November 30, 2006, the Fund had
liabilities payable to affiliates as follows:
Investment management fee payable to DMC $54,898
Accounting and administration fees and other
expenses payable to DSC 3,263
Other expenses payable to DMC and affiliates * 25,022
* 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 and tax services, including internal legal and tax services
provided to the Fund by DMC and/or its affiliates' employees. For the year ended
November 30, 2006, the Fund was charged $3,160 for internal legal and tax
services provided by DMC and/or its' affiliates employees.
Directors' Fees and Benefits include expenses accrued by the Fund for each
Director's retainer, per meeting fees and retirement benefits. Independent
Directors with over five years of uninterrupted service are eligible to
participate in a retirement plan that provides for the payment of benefits upon
retirement. The amount of the retirement benefit is determined based on factors
set forth in the plan including the number of years of service. On November 16,
2006, the Board of Directors of the Fund unanimously voted to terminate the
retirement plan. Payments equal to the net present value of the earned benefits
will be made in 2007 to those independent directors and retired directors so
entitled. The retirement benefit payout for the Fund is $8,608. Certain officers
of DMC, DSC and DDLP are officers and/or directors of the Fund. These officers
and directors are paid no compensation by the Fund.
3. Investments
For the year ended November 30, 2006, the Fund made purchases of $66,455,941 and
sales of $76,462,519 of investment securities other than short-term investments.
At November 30, 2006, the cost of investments for federal income tax purposes
was $91,767,398. At November 30, 2006, net unrealized appreciation was
$12,773,811 of which $13,470,108 related to unrealized appreciation of
investments and $696,297 related to unrealized depreciation of investments.
26
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 years ended November 30, 2006 and
2005 was as follows:
Year Ended
11/30/06 11/30/05
Ordinary Income $ 3,294,270 $2,295,845
Long-Term Capital Gain 10,966,107 3,241,579
___________ __________
Total $14,260,377 $5,537,424
___________ __________
5. Components of Net Assets on a Tax Basis
As of November 30, 2006, the components of net assets on a tax basis were as
follows:
Shares of beneficial interest $58,693,534
Undistributed long-term capital gains 1,306,373
Unrealized appreciation of investments
and foreign currencies 12,807,477
Other temporary differences (217,165)
___________
Net assets $72,590,219
___________
The differences between book basis and tax basis components of net assets are
primarily attributable to tax deferral of losses on wash sales, straddle
deferrals, mark-to-market of forward foreign currency contracts, tax treatment
of market discount and premium on debt instruments, realization of unrealized
gain on investments in passive foreign investment companies and tax treatment of
contingent payment debt instruments. For financial reporting purposes, capital
accounts are adjusted to reflect the tax character of permanent book/tax
differences. Reclassifications are primarily due to tax treatment of gain (loss)
on foreign currency transactions, market discounts and premiums on certain debt
instruments, contingent payment debt instruments and real estate investment
trusts. Results of operations and net assets were not affected by these
reclassifications. For the year ended November 30, 2006, the Fund recorded the
following permanent reclassifications:
Undistributed net investment income $ (904)
Accumulated net realized gain (loss) 904
6. Capital Stock
Shares obtained under the Fund's dividend reinvestment plan are purchased by the
Fund's transfer agent, Mellon Investor Services, LLC, in the open market. There
were no shares issued under the Fund's dividend reinvestment plan for the years
ended November 30, 2006 and 2005.
On May 19, 2005, the Fund's Board of Directors approved a tender offer for
shares of the Fund's common stock. The tender offer authorized the Fund to
purchase up to 10% of its issued and outstanding shares at a price equal to the
Fund's net asset value at 4:00pm New York City time on July 1, 2005, the first
business day following the expiration of the offer. The tender offer commenced
on June 3, 2005 and expired on June 30, 2005. In connection with the tender
offer, the Fund purchased 521,836 shares of capital stock at a total cost of
$7,018,700.
The Fund did not repurchase any shares under the Share Repurchase Program during
the years ended November 30, 2006 and 2005.
7. Line of Credit
The Fund has entered into a Line of Credit Agreement with J.P. Morgan Chase for
$25,000,000 that expires on January 16, 2007. At November 30, 2006, the par
value of loans outstanding was $23,000,000 at a variable interest rate of 5.87%.
During the year ended November 30, 2006, the average daily balance of loans
outstanding was $23,000,000 at a weighted average interest rate of approximately
5.45%. 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. As of January 19, 2006, the commitment fee is computed at a
rate of 0.12% per annum on the unused balance. Prior to January 19, 2006, the
rate was 0.15%. The loan is collateralized by the Fund's portfolio.
8. Foreign Exchange Contracts
The Fund may enter into foreign currency exchange contracts and 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 foreign currency exchange contracts and 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 foreign currency exchange contracts (and foreign
cross-currency exchange contracts) limit the risk of loss due to a decline in
the value of the hedged currency, they also limit any potential gain that might
result should the value of the currency increase. In addition, the Fund could be
exposed to risks if the counterparties to the contracts are unable to meet the
terms of their contracts. The unrealized gain (loss) is included in receivables
and other assets net of liabilities.
9. Securities Lending
The Fund, along with other funds in the Delaware Investments(R) Family of
Funds, may lend its securities pursuant to a security lending agreement (Lending
Agreement) with J.P. Morgan Chase. Initial security loans made pursuant to the
Lending Agreement are required to be secured by U.S. Treasury obligations and/or
cash collateral not less than 102% of the market value of the securities issued
in the United States.
(continues) 27
Notes to financial statements
Delaware Investments Global Dividend and Income Fund, Inc.
9. Securities Lending (continued)
With respect to each loan, if the aggregate market value of the collateral held
on any business day is less than the aggregate market value of the securities
which are the subject of such loan, the borrower will be notified to provide
additional collateral not less than the applicable collateral requirements. Cash
collateral received is invested in fixed-income securities, with a weighted
average maturity not to exceed 90 days, rated in one of the top two tiers by
Standard & Poor's Ratings Group or Moody's Investors Service, Inc. or repurchase
agreements collateralized by such securities. However, in the event of default
or bankruptcy by the lending agent, realization and/or retention of the
collateral may be subject to legal proceedings. In the event the borrower fails
to return loaned securities and the collateral received is insufficient to cover
the value of the loaned securities and provided such collateral shortfall is not
the result of investment losses, the lending agent has agreed to pay the amount
of the shortfall to the Fund, or at the discretion of the lending agent, replace
the loaned securities. The Fund continues to record dividends on the securities
loaned and is subject to change in value of the securities loaned that may occur
during the term of the loan.
The Fund has the right under the Lending Agreement to recover the securities
from the borrower on demand. The security lending agent and the borrower retain
a portion of the earnings from the collateral investments. The Fund records
security lending income net of such allocation.
At November 30, 2006, the market value of the securities on loan was
$10,255,559, 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."
10. Credit and Market Risks
Some countries in which the Fund may invest require governmental approval for
the repatriation of investment income, capital or the proceeds of sales of
securities by foreign investors. In addition, if there is deterioration in a
country's balance of payments or for other reasons, a country may impose
temporary restrictions on foreign capital remittances abroad. The securities
exchanges of certain foreign markets are substantially smaller, less liquid and
more volatile than the major securities markets in the United States.
Consequently, acquisition and disposition of securities by the Fund may be
inhibited. In addition, a significant portion of the aggregate market value of
equity securities listed on the major securities exchanges in emerging markets
is held by a smaller number of investors. This may limit the number of shares
available for acquisition or disposition by the Fund.
The Fund invests a portion of its assets in high yield fixed income securities,
which carry ratings of BB or lower by Standard & Poor's Ratings Group and/or Ba
or lower by Moody's Investors Service, Inc. Investments in these higher yielding
securities are generally accompanied by a greater degree of credit risk than
higher rated securities. Additionally, lower rated securities may be more
susceptible to adverse economic and competitive industry conditions than
investment grade securities.
The Fund may invest up to 10% of its total assets in illiquid securities, which
may include securities with contractual restrictions on resale, securities
exempt from registration under Rule 144A of the Securities Act of 1933, as
amended and other securities which may not be readily marketable. The relative
illiquidity of these securities may impair the Fund from disposing of them in a
timely manner and at a fair price when it is necessary or desirable to do so.
While maintaining oversight, the Board of Directors has delegated to the
investment advisor the day-to-day functions of determining whether individual
securities are liquid for purposes of the Fund's limitation on investments in
illiquid assets. Rule 144A and illiquid securities have been identified on the
Statement of Net Assets.
The Fund invests in REITs and is subject to some of the risks associated with
that industry. If the Fund holds real estate directly as a result of defaults or
receives rental income directly from real estate holdings, its tax status as a
regulated investment company may be jeopardized. There were no direct holdings
during the year ended November 30, 2006. The Fund's REIT holdings are also
affected by interest rate changes, particularly if the REITs it holds use
floating rate debt to finance their ongoing operations.
11. Contractual Obligations
The Fund enters into contracts in the normal course of business that contain a
variety of indemnifications. The Fund's maximum exposure under these
arrangements is unknown. However, the Fund has not had prior claims or losses
pursuant to these contracts. Management has reviewed the Fund's existing
contracts and expects the risk of loss to be remote.
12. Tax Information (Unaudited)
The information set forth below is for the Fund's fiscal year as required by
federal laws. Shareholders, however, must report distributions on a calendar
year basis for income tax purposes, which may include distributions for portions
of two fiscal years of a fund. Accordingly, the information needed by
shareholders for income tax purposes will be sent to them in January of each
year. Please consult your tax advisor for proper treatment of this information.
For the fiscal year ended November 30, 2006, the Fund designates distributions
paid during the year as follows:
(A) (B)
Long-Term Ordinary
Capital Gain Income Total (C)
Distributions Distributions * Distributions Qualifying
(Tax Basis) (Tax Basis) (Tax Basis) Dividends (1)
_____________ _______________ _____________ _____________
77% 23% 100% 16%
(A) and (B) are based on a percentage of the Fund's total distributions.
(C) is based on a percentage of ordinary income distributions of the Fund.
(1) Qualifying dividends represent dividends, which qualify for the corporate
dividends received deduction.
* For the fiscal year ended November 30, 2006, certain dividends paid by the
Fund may be subject to a maximum tax rate of 15%, as provided by the Jobs
and Growth Tax Relief Reconciliation Act of 2003. The Fund intends to
designate up to a maximum amount of $1,897,170 to be taxed at a maximum rate
of 15%. Complete information will be computed and reported in conjunction
with your 2006 Form 1099-DIV.
28
Report of independent
registered public accounting firm
To the Shareholders and Board of Directors
Delaware Investments Global Dividend
and Income Fund, Inc.
We have audited the accompanying statement of net assets of Delaware Investments
Global Dividend and Income Fund, Inc. (the "Fund") as of November 30, 2006, and
the related statements of operations and cash flows for the year then ended, the
statements of changes in net assets for each of the two years in the period then
ended, and the financial highlights for each of the five years in the period
then ended. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Fund's internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Fund's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of November 30, 2006, by correspondence with the custodian
and brokers or by other appropriate auditing procedures where replies from
brokers were not received. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Delaware Investments Global Dividend and Income Fund, Inc. at November 30, 2006,
the results of its operations and cash flows for the year then ended, the
changes in its net assets for each of the two years in the period then ended,
and its financial highlights for each of the five years in the period then
ended, in conformity with U.S. generally accepted accounting principles.
/s/ Ernst & Young LLP
Philadelphia, Pennsylvania
January 18, 2007
29
Other Fund information
Delaware Investments Global Dividend and Income Fund, Inc.
Proxy Results (Unaudited)
The Fund held its Annual Meeting of Shareholders on August 16, 2006. At the
Annual Meeting, the Fund's shareholders elected nine Directors. The results of
the voting at the meeting were as follows:
Shares Voted No Ballot
Nominee Shares Voted For Against or Withheld Received
___________________ ________________ ___________________ _____________
Jude T. Driscoll * 5,061,733.337 164,533.627 237,478.943
Thomas L. Bennett 5,068,469.337 157,797.627 237,478.943
John A. Fry 5,073,333.337 152,933.627 237,478.943
Anthony D. Knerr 5,071,035.337 155,231.627 237,478.943
Lucinda S. Landreth 5,050,745.337 175,521.627 237,478.943
Ann R. Leven 5,071,135.337 155,131.627 237,478.943
Thomas F. Madison 5,066,410.337 159,856.627 237,478.943
Janet L. Yeomans 5,070,735.337 155,531.627 237,478.943
J. Richard Zecher 5,069,908.337 156,358.627 237,478.943
* Mr. Driscoll withdrew from election. The persons named as proxies used the
power given to them by shareholders to vote for a substitute nominee (in the
case of the withdrawal of the nominee for election) as recommended by the
existing Board. The Fund's Board approved Patrick P. Coyne as the substitute
nominee. Accordingly, the named proxies used their discretion to vote for
Patrick P. Coyne, the substitute nominee.
Corporate Governance (Unaudited)
The Fund's audit committee charter is available on its web site at
http://www.delawareinvestments.com, and the charter is also available in print
to any shareholder who requests it. The Fund submitted its Annual CEO
certification for 2006 to the NYSE on September 15, 2006 stating that the CEO
was not aware of any violation by the Fund of the NYSE's corporate governance
listing standards. In addition, the Fund had filed the required CEO/CFO
certifications regarding the quality of the Fund's public disclosure as exhibits
to the Forms N-CSR and Forms N-Q filed by the Fund over the past fiscal year.
The Fund's Form N-CSR and Form N-Q filings are available on the Commission's web
site at http://www.sec.gov.
Rescission of Exemptive Order (Unaudited)
In 1995, the Fund implemented a managed distribution policy. Under the policy,
the Fund is managed with a goal of generating as much of the dividend as
possible from ordinary income (net investment income and short-term capital
gains). The balance of the dividend then comes from long-term capital gains to
the extent permitted and, if necessary, a return of capital. In 2002, the
Securities and Exchange Commission (the "SEC") granted the Fund an exemption
from Section 19(b) of the Investment Company Act of 1940 (the "1940 Act") to
allow the Fund to distribute long-term capital gains up to 12 times per year
(the "Order"). The Order gave the Fund the ability to characterize a portion of
each monthly distribution made pursuant to the Fund's managed distribution
policy as long-term capital gain. On the basis of a separate matter, the SEC has
recently rescinded the Fund's Order. The Fund has applied for a new Section
19(b) exemptive order ("New Order"). While the application is pending, the
Fund's ability to characterize any portion of distributions made pursuant to the
Fund's managed distribution policy as long-term capital gains will be limited to
the instances permitted by Section 19(b) of the 1940 Act. Additionally, the
rescission of the Fund's Order may (but not necessarily will) lead to one or
more of the following: (i) a lower monthly distribution amount made pursuant to
the Fund's managed distribution policy; (ii) the Fund's share price trading at a
discount (if the Fund is trading at a premium) or the Fund's share price trading
at a greater discount from its net asset value than would otherwise have been
the case if the Order were in effect (if the Fund is trading at a discount); or
(iii) the amount of distributions paid in a given year may be higher than would
have been paid when the Order was in effect if some part of the monthly
distributions paid by the Fund are classified as returns of capital rather than
from long-term capital gains and, in addition to such distributions, the Fund
separately pays out its long-term capital gains as permitted by Section 19(b) of
the 1940 Act. The preceding issues may be mitigated or eliminated if the Fund
receives the New Order in a timely manner, but there is no guarantee of such
result.
30
Additions to Portfolio Management Team
During the year ended November 30, 2006, Babak Zenouzi, Nikhil G. Lalvani,
Nashira S. Wynn, and Todd A. Bassion were each appointed co-portfolio managers
of the Fund. Mr. Zenouzi assumed primary responsibility for managing the REIT
and convertible securities holdings for the Fund, and consults regularly Damon
J. Andres in this capacity. Mr. Lalvani and Ms. Wynn focus on the large-cap
value equity portion of the Fund, while Mr. Bassion focuses on the Fund's
international equity component. Mr. Zenouzi, Mr. Lalvani, Ms. Wynn, and Mr.
Bassion work 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.
Distribution Information (Unaudited)
Shareholders were sent monthly notices from the Fund that set forth estimates,
on a book basis, of the source or sources from which monthly distributions were
paid. Subsequently, these estimates may have been corrected in part. Listed
below is a written statement of the sources of these monthly distributions, as
corrected, on a book basis.
Net Investment Return of Long Term Total
Income Capital Capital Gain Distribution
per share per share per share Amount
______________ _________ ____________ ____________
12/05 $0.023 $- $1.707 $1.730
1/06 0.029 - 0.051 0.080
2/06 0.016 - 0.064 0.080
3/06 0.046 - 0.034 0.080
4/06 0.021 - 0.059 0.080
5/06 0.025 - 0.055 0.080
6/06 0.039 - 0.041 0.080
7/06 0.025 - 0.055 0.080
8/06 0.021 - 0.059 0.080
9/06 0.018 - 0.062 0.080
10/06 0.013 - 0.067 0.080
11/06 0.024 - 0.056 0.080
______ __ ______ ______
$0.300 $- $2.310 $2.610
______ __ ______ ______
Please note that the information in the preceding chart is for book purposes
only. Shareholders should be aware that the tax treatment of distributions may
differ from their book treatment. The tax treatment of distributions will be set
forth in a Form 1099-DIV.
31
Board of directors/trustees
and officers addendum
Delaware Investments(R) Family of Funds
A mutual fund is governed by a Board of Directors/Trustees, which has oversight
responsibility for the management of a fund's business affairs.
Directors/Trustees establish procedures and oversee and review the performance
of the investment manager, the distributor, and others who perform services for
the fund. The independent fund directors/trustees, in particular, are advocates
for shareholder interests. Each director/trustee has served in that capacity
since he or she was elected to or appointed to the Board of Directors, and will
continue to serve until his or her retirement or the election of a new
director/trustee in his or her place. The following is a list of the Directors
and Officers with certain background and related information.
Number of
Portfolios in Fund Other
Name, Complex Overseen Directorships
Address, Position(s) Length of Principal Occupation(s) by Director Held by
and Birth Date Held with Fund(s) Time Served During Past 5 Years or Officer Director or Officer
____________________________________________________________________________________________________________________________________
Interested Trustees
____________________________________________________________________________________________________________________________________
Patrick P. Coyne (1) Chairman, Chairman and Director Patrick P. Coyne has served in 83 None
2005 Market Street President, since August 16, 2006 various executive capacities
Philadelphia, PA Chief Executive at different times at
19103 Officer, and President and Delaware Investments. (2)
Director Chief Executive Officer
April 14, 1963 since August 1, 2006
____________________________________________________________________________________________________________________________________
Independent Trustees
____________________________________________________________________________________________________________________________________
Thomas L. Bennett Director Since Private Investor - 83 None
2005 Market Street March 2005 (March 2004-Present)
Philadelphia, PA
19103 Investment Manager -
Morgan Stanley & Co.
October 4, 1947 (January 1984-March 2004)
____________________________________________________________________________________________________________________________________
John A. Fry Director Since President - 83 Director -
2005 Market Street January 2001 Franklin & Marshall College Community Health
Philadelphia, PA (June 2002-Present) Systems
19103
Executive Vice President - Director -
May 28, 1960 University of Pennsylvania Allied Barton
(April 1995-June 2002) Security Holdings
____________________________________________________________________________________________________________________________________
Anthony D. Knerr Director Since Founder and Managing Director - 83 None
2005 Market Street April 1990 Anthony Knerr & Associates
Philadelphia, PA (Strategic Consulting)
19103 (1990-Present)
December 7, 1938
____________________________________________________________________________________________________________________________________
Lucinda S. Landreth Director Since Chief Investment Officer - 83 None
2005 Market Street March 2005 Assurant, Inc.
Philadelphia, PA (Insurance)
19103 (2002-2004)
June 24, 1947
____________________________________________________________________________________________________________________________________
Ann R. Leven Director Since Consultant - 83 Director and
2005 Market Street September 1989 ARL Associates Audit Committee
Philadelphia, PA (Financial Planning) Chairperson - Andy
19103 (1983-Present) Warhol Foundation
November 1, 1940 Director and Audit
Committee Member -
Systemax, Inc.
____________________________________________________________________________________________________________________________________
32
Number of
Portfolios in Fund Other
Name, Complex Overseen Directorships
Address, Position(s) Length of Principal Occupation(s) by Director Held by
and Birth Date Held with Fund(s) Time Served During Past 5 Years or Officer Director or Officer
____________________________________________________________________________________________________________________________________
Independent Trustees (continued)
____________________________________________________________________________________________________________________________________
Thomas F. Madison Director Since President and Chief 83 Director -
2005 Market Street May 1997 Executive Officer - Banner Health
Philadelphia, PA MLM Partners, Inc.
19103 (Small Business Investing Director -
and Consulting) CenterPoint Energy
February 25, 1936 (January 1993-Present)
Director and Audit
Committee Member -
Digital River, Inc.
Director and Audit
Committee Member -
Rimage
Corporation
Director - Valmont
Industries, Inc.
____________________________________________________________________________________________________________________________________
Janet L. Yeomans Director Since Vice President 83 None
2005 Market Street April 1999 (January 2003-Present)
Philadelphia, PA and Treasurer
19103 (January 2006-Present)
3M Corporation
July 31, 1948
Ms. Yeomans has held
various management positions
at 3M Corporation since 1983.
____________________________________________________________________________________________________________________________________
J. Richard Zecher Director Since Founder - 83 Director and Audit
2005 Market Street March 2005 Investor Analytics Committee Member -
Philadelphia, PA (Risk Management) Investor Analytics
19103 (May 1999-Present)
Director and Audit
July 3, 1940 Founder - Committee Member -
Sutton Asset Management Oxigene, Inc.
(Hedge Fund)
(September 1998-Present)
____________________________________________________________________________________________________________________________________
Officers
____________________________________________________________________________________________________________________________________
David F. Connor Vice President, Vice President since David F. Connor has served as 83 None (3)
2005 Market Street Deputy General September 21, 2000 Vice President and Deputy
Philadelphia, PA Counsel, and Secretary and Secretary General Counsel of
19103 since Delaware Investments
October 2005 since 2000.
December 2, 1963
____________________________________________________________________________________________________________________________________
David P. O'Connor Senior Vice Senior Vice President, David P. O'Connor has served in 83 None (3)
2005 Market Street President, General Counsel, and various executive and legal
Philadelphia, PA General Counsel, Chief Legal Officer capacities at different times
19103 and Chief since at Delaware Investments.
Legal Officer October 2005
February 21, 1966
____________________________________________________________________________________________________________________________________
John J. O'Connor Senior Vice President Treasurer John J. O'Connor has served in 83 None (3)
2005 Market Street and Treasurer since various executive capacities
Philadelphia, PA February 2005 at different times at
19103 Delaware Investments.
June 16, 1957
____________________________________________________________________________________________________________________________________
Richard Salus Senior Chief Financial Richard Salus has served in 83 None (3)
2005 Market Street Vice President Officer since various executive capacities
Philadelphia, PA and November 1, 2006 at different times at
19103 Chief Financial Delaware Investments.
Officer
October 4, 1963
____________________________________________________________________________________________________________________________________
(1) Patrick P. Coyne is considered to be an "Interested Director" because he is an executive officer of the Fund's investment
advisor.
(2) Delaware Investments is the marketing name for Delaware Management Holdings, Inc. and its subsidiaries, including the Fund's
investment advisor and its administrator.
(3) David F. Connor, David P. O'Connor, John J. O'Connor, and Richard Salus serve in similar capacities for the six portfolios of
the Optimum Fund Trust, which have the same investment advisor as the registrant. John J. O'Connor also serves in a similar
capacity for Lincoln Variable Insurance Products Trust, which has the same investment advisor as the registrant.
33
About the organization
This annual report is for the information of Delaware Investments Global
Dividend and Income Fund, Inc. shareholders. The figures in this report
represent past results that are not a guarantee of future results. The return
and principal value of an investment in the Fund will fluctuate so that shares,
when sold, may be worth more or less than their original cost.
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that the Fund may, from time to time, purchase shares of its
Common Stock on the open market at market prices.
Board of Directors
Patrick P. Coyne
Chairman, President,
and Chief Executive Officer
Delaware Investments 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
Consultant
ARL Associates
New York, NY
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
Affiliated Officers
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
Richard Salus
Senior Vice President and
Chief Financial Officer
Delaware Investments Family of Funds
Philadelphia, PA
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 is 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, DC; 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.
Contact Information
Investment Manager
Delaware Management Company
Philadelphia, PA
Principal Office of the Funds
2005 Market Street
Philadelphia, PA 19103-7057
Independent Registered Public
Accounting Firm
Ernst & Young LLP
2001 Market Street
Philadelphia, PA 19103
Registrar and Stock Transfer
Agent
Mellon Investor Services
480 Washington Blvd.
Jersey City, NJ 07310
800 851-9677
For Securities Dealers
and Financial Institutions
Representatives
800 362-7500
Web Site
www.delawareinvestments.com
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.
+ Audit Committee Member
34
[DELAWARE INVESTMENTS LOGO] [THE NEW YORK STOCK EXCHANGE LOGO]
(1217) Printed in the USA
AR-DGF [11/06] CGI 1/07 MF-06-12-018 PO11496
Item 2. Code of Ethics
The registrant has adopted a code of ethics that applies to the
registrant's principal executive officer, principal financial officer, principal
accounting officer or controller, or persons performing similar functions,
regardless of whether these individuals are employed by the registrant or a
third party. A copy of the registrant's Code of Business Ethics has been posted
on Delaware Investments' internet website at www.delawareinvestments.com. Any
amendments to the Code of Business Ethics, and information on any waiver from
its provisions granted by the registrant, will also be posted on this website
within five business days of such amendment or waiver and will remain on the
website for at least 12 months.
Item 3. Audit Committee Financial Expert
The registrant's Board of Trustees/Directors has determined that each
member of the registrant's Audit Committee is an audit committee financial
expert, as defined below. For purposes of this item, an "audit committee
financial expert" is a person who has the following attributes:
a. An understanding of generally accepted accounting principles and
financial statements;
b. The ability to assess the general application of such principles in
connection with the accounting for estimates, accruals, and reserves;
c. Experience preparing, auditing, analyzing, or evaluating financial
statements that present a breadth and level of complexity of accounting issues
that are generally comparable to the breadth and complexity of issues that can
reasonably be expected to be raised by the registrant's financial statements, or
experience actively supervising one or more persons engaged in such activities;
d. An understanding of internal controls and procedures for financial
reporting; and
e. An understanding of audit committee functions.
An "audit committee financial expert" shall have acquired such attributes
through:
a. Education and experience as a principal financial officer, principal
accounting officer, controller, public accountant, or auditor or experience in
one or more positions that involve the performance of similar functions;
b. Experience actively supervising a principal financial officer, principal
accounting officer, controller, public accountant, auditor, or person performing
similar functions;
c. Experience overseeing or assessing the performance of companies or
public accountants with respect to the preparation, auditing, or evaluation of
financial statements; or
d. Other relevant experience.
The registrant's Board of Trustees/Directors has also determined that each
member of the registrant's Audit Committee is independent. In order to be
"independent" for purposes of this item, the Audit Committee member may not: (i)
other than in his or her capacity as a member of the Board of Trustees/Directors
or any committee thereof, accept directly or indirectly any consulting, advisory
or other compensatory fee from the issuer; or (ii) be an "interested person" of
the registrant as defined in Section 2(a)(19) of the Investment Company Act of
1940.
The names of the audit committee financial experts on the registrant's
Audit Committee are set forth below:
Thomas L. Bennett (1)
Thomas F. Madison
Janet L. Yeomans (1)
J. Richard Zecher
Item 4. Principal Accountant Fees and Services
(a) Audit fees.
__________
The aggregate fees billed for services provided to the registrant by its
independent auditors for the audit of the registrant's annual financial
statements and for services normally provided by the independent auditors in
connection with statutory and regulatory filings or engagements were $11,100 for
the fiscal year ended November 30, 2006.
____________________
(1) The instructions to Form N-CSR require disclosure on the relevant experience
of persons who qualify as audit committee financial experts based on "other
relevant experience." The Board of Trustees/Directors has determined that Mr.
Bennett qualifies as an audit committee financial expert by virtue of his
education, Chartered Financial Analyst designation, and his experience as a
credit analyst, portfolio manager and the manager of other credit analysts and
portfolio managers. The Board of Trustees/Directors has determined that Ms.
Yeomans qualifies as an audit committee financial expert by virtue of her
education and experience as the Treasurer of a large global corporation.
The aggregate fees billed for services provided to the registrant by its
independent auditors for the audit of the registrant's annual financial
statements and for services normally provided by the independent auditors in
connection with statutory and regulatory filings or engagements were $11,600 for
the fiscal year ended November 30, 2005.
(b) Audit-related fees.
__________________
The aggregate fees billed by the registrant's independent auditors for
services relating to the performance of the audit of the registrant's financial
statements and not reported under paragraph (a) of this Item were $0 for the
fiscal year ended November 30, 2006.
The aggregate fees billed by the registrant's independent auditors for
services relating to the performance of the audit of the financial statements of
the registrant's investment adviser and other service providers under common
control with the adviser and that relate directly to the operations or financial
reporting of the registrant were $15,000 for the registrant's fiscal year ended
November 30, 2006. The percentage of these fees relating to services approved by
the registrant's Audit Committee pursuant to the de minimis exception from the
pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%.
These audit-related services were as follows: issuance of agreed upon procedures
report to the registrant's Board in connection with the pass-through of internal
legal cost relating to the operations of the registrant.
The aggregate fees billed by the registrant's independent auditors for
services relating to the performance of the audit of the registrant's financial
statements and not reported under paragraph (a) of this Item were $0 for the
fiscal year ended November 30, 2005.
The aggregate fees billed by the registrant's independent auditors for
services relating to the performance of the audit of the financial statements of
the registrant's investment adviser and other service providers under common
control with the adviser and that relate directly to the operations or financial
reporting of the registrant were $16,350 for the registrant's fiscal year ended
November 30, 2005. The percentage of these fees relating to services approved by
the registrant's Audit Committee pursuant to the de minimis exception from the
pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%.
These audit-related services were as follows: issuance of agreed upon procedures
reports to the registrant's Board in connection with the annual fund accounting
service agent contract renewal and the pass-through of internal legal cost
relating to the operations of the registrant.
(c) Tax fees.
________
The aggregate fees billed by the registrant's independent auditors for
tax-related services provided to the registrant were $2,000 for the fiscal year
ended November 30, 2006. The percentage of these fees relating to services
approved by the registrant's Audit Committee pursuant to the de minimis
exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of
Regulation S-X was 0%. These tax-related services were as follows: review of
income tax return and review of annual excise distribution calculation.
The aggregate fees billed by the registrant's independent auditors for
tax-related services provided to the registrant's investment adviser and other
service providers under common control with the adviser and that relate directly
to the operations or financial reporting of the registrant were $0 for the
registrant's fiscal year ended November 30, 2006.
The aggregate fees billed by the registrant's independent auditors for
tax-related services provided to the registrant were $2,100 for the fiscal year
ended November 30, 2005. The percentage of these fees relating to services
approved by the registrant's Audit Committee pursuant to the de minimis
exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of
Regulation S-X was 0%. These tax-related services were as follows: review of
income tax return and review of annual excise distribution calculation.
The aggregate fees billed by the registrant's independent auditors for
tax-related services provided to the registrant's adviser and other service
providers under common control with the adviser and that relate directly to the
operations or financial reporting of the registrant were $0 for the registrant's
fiscal year ended November 30, 2005.
(d) All other fees.
______________
The aggregate fees billed for all services provided by the independent
auditors to the registrant other than those set forth in paragraphs (a), (b) and
(c) of this Item were $0 for the fiscal year ended November 30, 2006.
The aggregate fees billed for all services other than those set forth in
paragraphs (b) and (c) of this Item provided by the registrant's independent
auditors to the registrant's adviser and other service providers under common
control with the adviser and that relate directly to the operations or financial
reporting of the registrant were $0 for the registrant's fiscal year ended
November 30, 2006.
The aggregate fees billed for all services provided by the independent
auditors to the registrant other than those set forth in paragraphs (a), (b) and
(c) of this Item were $0 for the fiscal year ended November 30, 2005.
The aggregate fees billed for all services other than those set forth
in paragraphs (b) and (c) of this Item provided by the registrant's independent
auditors to the registrant's adviser and other service providers under common
control with the adviser and that relate directly to the operations or financial
reporting of the registrant were $0 for the registrant's fiscal year ended
November 30, 2005.
(e) The registrant's Audit Committee has established pre-approval policies
and procedures as permitted by Rule 2-01(c)(7)(i)(B) of Regulation S-X (the
"Pre-Approval Policy") with respect to services provided by the registrant's
independent auditors. Pursuant to the Pre-Approval Policy, the Audit Committee
has pre-approved the services set forth in the table below with respect to the
registrant up to the specified fee limits. Certain fee limits are based on
aggregate fees to the registrant and other registrants within the Delaware
Investments Family of Funds.
______________________________________________________________________________________________________________________
Service Range of Fees
______________________________________________________________________________________________________________________
Audit Services
______________________________________________________________________________________________________________________
Statutory audits or financial audits for new Funds up to $25,000 per Fund
______________________________________________________________________________________________________________________
Services associated with SEC registration statements (e.g., Form N-1A, Form
N-14, etc.), periodic reports and other documents filed with the SEC or other
documents issued in connection with securities offerings (e.g., comfort letters up to $10,000 per Fund
for closed-end Fund offerings, consents), and assistance in responding to SEC
comment letters
______________________________________________________________________________________________________________________
Consultations by Fund management as to the accounting or disclosure treatment of
transactions or events and/or the actual or potential impact of final or
proposed rules, standards or interpretations by the SEC, FASB, or other up to $25,000 in the aggregate
regulatory or standard-setting bodies (Note: Under SEC rules, some consultations
may be considered "audit-related services" rather than "audit services")
______________________________________________________________________________________________________________________
Audit-Related Services
______________________________________________________________________________________________________________________
Consultations by Fund management as to the accounting or disclosure treatment of
transactions or events and /or the actual or potential impact of final or
proposed rules, standards or interpretations by the SEC, FASB, or other up to $25,000 in the aggregate
regulatory or standard-setting bodies (Note: Under SEC rules, some consultations
may be considered "audit services" rather than "audit-related services")
______________________________________________________________________________________________________________________
Tax Services
______________________________________________________________________________________________________________________
U.S. federal, state and local and international tax planning and advice (e.g.,
consulting on statutory, regulatory or administrative developments, evaluation up to $25,000 in the aggregate
of Funds' tax compliance function, etc.)
______________________________________________________________________________________________________________________
U.S. federal, state and local tax compliance (e.g., excise distribution reviews, up to $5,000 per Fund
etc.)
______________________________________________________________________________________________________________________
Review of federal, state, local and international income, franchise and other up to $5,000 per Fund
tax returns
______________________________________________________________________________________________________________________
Under the Pre-Approval Policy, the Audit Committee has also pre-approved
the services set forth in the table below with respect to the registrant's
investment adviser and other entities controlling, controlled by or under common
control with the investment adviser that provide ongoing services to the
registrant (the "Control Affiliates") up to the specified fee limit. This fee
limit is based on aggregate fees to the investment adviser and its Control
Affiliates.
______________________________________________________________________________________________________________________
Service Range of Fees
______________________________________________________________________________________________________________________
Non-Audit Services
______________________________________________________________________________________________________________________
Services associated with periodic reports and other documents filed with the SEC up to $10,000 in the aggregate
and assistance in responding to SEC comment letters
______________________________________________________________________________________________________________________
The Pre-Approval Policy requires the registrant's independent auditors to
report to the Audit Committee at each of its regular meetings regarding all
services initiated since the last such report was rendered, including those
services authorized by the Pre-Approval Policy.
(f) Not applicable.
(g) The aggregate non-audit fees billed by the registrant's independent
auditors for services rendered to the registrant and to its investment adviser
and other service providers under common control with the adviser were $255,820
and $207,335 for the registrant's fiscal years ended November 30, 2006 and
November 30, 2005, respectively.
(h) In connection with its selection of the independent auditors, the
registrant's Audit Committee has considered the independent auditors' provision
of non-audit services to the registrant's investment adviser and other service
providers under common control with the adviser that were not required to be
pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X. The Audit
Committee has determined that the independent auditors' provision of these
services is compatible with maintaining the auditors' independence.
Item 5. Audit Committee of Listed Registrants
The registrant has a separately-designated standing Audit Committee
established in accordance with Section 3(a)(58)(A) of the Securities Exchange
Act of 1934. The members of the registrant's Audit Committee are Thomas L.
Bennett, Thomas F. Madison, Janet L. Yeomans and J. Richard Zecher.
Item 6. Schedule of Investments
Included as part of report to shareholders filed under Item 1 of this Form
N-CSR.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies
The registrant has formally delegated to its investment adviser (the
"Adviser") the ability to make all proxy voting decisions in relation to
portfolio securities held by the registrant. If and when proxies need to be
voted on behalf of the registrant, the Adviser will vote such proxies pursuant
to its Proxy Voting Policies and Procedures (the "Procedures"). The Adviser has
established a Proxy Voting Committee (the "Committee") which is responsible for
overseeing the Adviser's proxy voting process for the registrant. One of the
main responsibilities of the Committee is to review and approve the Procedures
to ensure that the Procedures are designed to allow the Adviser to vote proxies
in a manner consistent with the goal of voting in the best interests of the
registrant.
In order to facilitate the actual process of voting proxies, the Adviser
has contracted with Institutional Shareholder Services ("ISS") to analyze proxy
statements on behalf of the registrant and other Adviser clients and vote
proxies generally in accordance with the Procedures. The Committee is
responsible for overseeing ISS's proxy voting activities. If a proxy has been
voted for the registrant, ISS will create a record of the vote. By no later than
August 31 of each year, information (if any) regarding how the registrant voted
proxies relating to portfolio securities during the most recently disclosed
12-month period ended June 30 is available without charge (i) through the
registrant's website at http://www.delawareinvestments.com; and (ii) on the
Commission's website at http://www.sec.gov.
The Procedures contain a general guideline that recommendations of company
management on an issue (particularly routine issues) should be given a fair
amount of weight in determining how proxy issues should be voted. However, the
Adviser will normally vote against management's position when it runs counter to
its specific Proxy Voting Guidelines (the "Guidelines"), and the Adviser will
also vote against management's recommendation when it believes that such
position is not in the best interests of the registrant.
As stated above, the Procedures also list specific Guidelines on how to
vote proxies on behalf of the registrant. Some examples of the Guidelines are as
follows: (i) generally vote for shareholder proposals asking that a majority or
more of directors be independent; (ii) generally vote against proposals to
require a supermajority shareholder vote; (iii) votes on mergers and
acquisitions should be considered on a case-by-case basis, determining whether
the transaction enhances shareholder value; (iv) generally vote against
proposals to create a new class of common stock with superior voting rights; (v)
generally vote re-incorporation proposals on a case-by-case basis; (vi) votes
with respect to equity-based compensation plans are generally determined on a
case-by-case basis; and (vii) generally vote for proposals requesting reports on
the level of greenhouse gas emissions from a company's operations and products.
Because the registrant has delegated proxy voting to the Adviser, the
registrant is not expected to encounter any conflict of interest issues
regarding proxy voting and therefore does not have procedures regarding this
matter. However, the Adviser does have a section in its Procedures that
addresses the possibility of conflicts of interest. Most proxies which the
Adviser receives on behalf of the registrant are voted by ISS in accordance with
the Procedures. Because almost all registrant proxies are voted by ISS pursuant
to the pre-determined Procedures, it normally will not be necessary for the
Adviser to make an actual determination of how to vote a particular proxy,
thereby largely eliminating conflicts of interest for the Adviser during the
proxy voting process. In the very limited instances where the Adviser is
considering voting a proxy contrary to ISS's recommendation, the Committee will
first assess the issue to see if there is any possible conflict of interest
involving the Adviser or affiliated persons of the Adviser. If a member of the
Committee has actual knowledge of a conflict of interest, the Committee will
normally use another independent third party to do additional research on the
particular proxy issue in order to make a recommendation to the Committee on how
to vote the proxy in the best interests of the registrant. The Committee will
then review the proxy voting materials and recommendation provided by ISS and
the independent third party to determine how to vote the issue in a manner which
the Committee believes is consistent with the Procedures and in the best
interests of the registrant.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
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_____________________________________________________________________________________________________________
DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC.
PORTFOLIO MANAGERS
_____________________________________________________________________________________________________________
Other Accounts Managed
The following chart lists certain information about types of other accounts
for which the portfolio managers are primarily responsible as of November 30,
2006.
_____________________________________________________________________________________________________________
Total Assets
in Accounts with
No. of Total Assets No. of Accounts with Performance-Based
Accounts in Accounts Fee Performance-Based Fees Fee
_____________________________________________________________________________________________________________
Damon J. Andres
_____________________________________________________________________________________________________________
Registered Investment 6 $2.5 billion 0 $0
Companies
_____________________________________________________________________________________________________________
Other pooled Investment 0 $0 0 $0
Vehicles
_____________________________________________________________________________________________________________
Other Accounts 5 $109.6 million 0 $0
_____________________________________________________________________________________________________________
Todd A. Bassion
_____________________________________________________________________________________________________________
Registered Investment 4 $1.3 billion 0 $0
Companies
_____________________________________________________________________________________________________________
Other pooled Investment 0 $0 0 $0
Vehicles
_____________________________________________________________________________________________________________
Other Accounts 6 $366.7 million 0 $0
_____________________________________________________________________________________________________________
Edward A. Gray
_____________________________________________________________________________________________________________
Registered Investment 4 $1.3 billion 0 $0
Companies
_____________________________________________________________________________________________________________
Other pooled Investment 0 $0 0 $0
Vehicles
_____________________________________________________________________________________________________________
Other Accounts 6 $366.7 million 0 $0
_____________________________________________________________________________________________________________
Jordan L. Irving
_____________________________________________________________________________________________________________
Registered Investment 10 $4.0 billion 0 $0
Companies
_____________________________________________________________________________________________________________
Other pooled Investment 0 $0 0 $0
Vehicles
_____________________________________________________________________________________________________________
Other Accounts 32 $3.6 billion 1 $796.0 million
_____________________________________________________________________________________________________________
Nikhil G. Lalvani
_____________________________________________________________________________________________________________
Registered Investment 10 $4.0 billion 0 $0
Companies
_____________________________________________________________________________________________________________
Other pooled Investment 0 $0 0 $0
Vehicles
_____________________________________________________________________________________________________________
Other Accounts 28 $3.6 billion 1 $796.0 million
_____________________________________________________________________________________________________________
Anthony A. Lombardi
_____________________________________________________________________________________________________________
Registered Investment 10 $4.0 billion 0 $0
Companies
_____________________________________________________________________________________________________________
Other pooled Investment 0 $0 0 $0
Vehicles
_____________________________________________________________________________________________________________
Other Accounts 34 $3.6 billion 1 $796.0 million
_____________________________________________________________________________________________________________
Zoe A. Neale
_____________________________________________________________________________________________________________
Registered Investment 4 $1.3 billion 0 $0
Companies
_____________________________________________________________________________________________________________
Other pooled Investment 0 $0 0 $0
Vehicles
_____________________________________________________________________________________________________________
Other Accounts 6 $366.7 million 0 $0
_____________________________________________________________________________________________________________
Ty Nutt
_____________________________________________________________________________________________________________
Registered Investment 10 $4.0 billion 0 $0
Companies
_____________________________________________________________________________________________________________
Other pooled Investment 0 $0 0 $0
Vehicles
_____________________________________________________________________________________________________________
Other Accounts 34 $3.6 billion 1 $796.0 million
_____________________________________________________________________________________________________________
Philip R. Perkins
_____________________________________________________________________________________________________________
Registered Investment 5 $2.7 billion 0 $0
Companies
_____________________________________________________________________________________________________________
Other pooled Investment 0 $0 0 $0
Vehicles
_____________________________________________________________________________________________________________
Other Accounts 2 $300.0 million 0 $0
_____________________________________________________________________________________________________________
Timothy L. Rabe
_____________________________________________________________________________________________________________
Registered Investment 12 $4.7 billion 0 $0
Companies
_____________________________________________________________________________________________________________
Other pooled Investment 0 $0 0 $0
Vehicles
_____________________________________________________________________________________________________________
Other Accounts 16 $1.0 billion 0 $0
_____________________________________________________________________________________________________________
Robert A. Vogel, Jr.
_____________________________________________________________________________________________________________
Registered Investment 10 $4.0 billion 0 $0
Companies
_____________________________________________________________________________________________________________
Other pooled Investment 0 $0 0 $0
Vehicles
_____________________________________________________________________________________________________________
Other Accounts 36 $3.6 billion 1 $796.0 million
_____________________________________________________________________________________________________________
Nashira S. Wynn
_____________________________________________________________________________________________________________
Registered Investment 10 $4.0 billion 0 $0
Companies
_____________________________________________________________________________________________________________
Other pooled Investment 0 $0 0 $0
Vehicles
_____________________________________________________________________________________________________________
Other Accounts 27 $3.6 billion 1 $796.0 million
_____________________________________________________________________________________________________________
Babak Zenouzi
_____________________________________________________________________________________________________________
Registered Investment 6 $2.5 billion 0 $0
Companies
_____________________________________________________________________________________________________________
Other pooled Investment 0 $0 0 $0
Vehicles
_____________________________________________________________________________________________________________
Other Accounts 5 $110.6 million 0 $0
_____________________________________________________________________________________________________________
Description of Material Conflicts of Interest
Individual portfolio managers may perform investment management services
for other accounts similar to those provided to the Funds and the investment
action for each account and Fund may differ. For example, an account or Fund may
be selling a security, while another account or Fund may be purchasing or
holding the same security. As a result, transactions executed for one account
may adversely affect the value of securities held by another account.
Additionally, the management of multiple accounts and Funds may give rise to
potential conflicts of interest, as a portfolio manager must allocate time and
effort to multiple accounts and Funds. A portfolio manager may discover an
investment opportunity that may be suitable for more than one account or Fund.
The investment opportunity may be limited, however, so that all accounts for
which the investment would be suitable may not be able to participate. The
Manager has adopted procedures designed to allocate investments fairly across
multiple accounts.
A portfolio manager's management of personal accounts also may present
certain conflicts of interest. While the Manager's Code of Ethics is designed to
address these potential conflicts, there is no guarantee that it will do so.
Compensation Structure
Each portfolio manager's compensation consists of the following:
Base Salary. Each named portfolio manager receives a fixed base salary.
Salaries are determined by a comparison to industry data prepared by third
parties to ensure that portfolio manager salaries are in line with salaries paid
at peer investment advisory firms.
Bonus. Each portfolio manager is eligible to receive an annual cash bonus
which is based on quantitative and qualitative factors. The amount of the pool
for bonus payments is first determined by mathematical equation based on assets,
management fees and expenses, including fund waiver expenses, for registered
investment companies, pooled vehicles, and managed separate accounts. Generally,
approximately 80% of the bonus is quantitatively determined. For investment
companies, each manager is compensated according the Fund's Lipper peer group
percentile ranking on a one-year and three-year basis. For managed separate
accounts the portfolio managers are compensated according to the composite
percentile ranking in consultant databases. There is no objective award for a
fund that falls below the 50th percentile for a given time period. There is a
sliding scale for investment companies that are ranked above the 50th
percentile. The managed separate accounts are compared to Callan and other
databases. The remaining 20% portion of the bonus is discretionary as determined
by Delaware and takes into account subjective factors.
Deferred Compensation. Each named portfolio manager is eligible to
participate in the Lincoln National Corporation Executive Deferred Compensation
Plan, which is available to all employees whose income exceeds a designated
threshold. The Plan is a non-qualified unfunded deferred compensation plan that
permits participating employees to defer the receipt of a portion of their cash
compensation.
Stock Option Incentive Plan/Equity Compensation Plan: Portfolio managers
may be awarded options to purchase common shares of Delaware Investments U.S.,
Inc. pursuant to the terms the Delaware Investments U.S., Inc. Stock Option Plan
(non-statutory or "non-qualified" stock options). In addition, certain managers
may be awarded restricted stock units, or "performance shares", in Lincoln.
Delaware Investments U.S., Inc., is an indirect subsidiary of DMH and,
therefore, of Lincoln.
The Delaware Investments U.S., Inc. Stock Option Plan was established in
2001 in order to provide certain investment personnel of the Manager with a more
direct means of participating in the growth of the investment manager. Under the
terms of the plan, stock options typically vest in 25% increments on a four-year
schedule and expire ten years after issuance. Options are awarded from time to
time by the investment manager in its full discretion. Option awards may be
based in part on seniority.
Portfolio managers who do not participate in the Delaware Investments U.S.,
Inc. Stock Option Plan are eligible to participate in Lincoln's Long-Term
Incentive Plan, which is designed to provide a long-term incentive to officers
of Lincoln. Under the plan, a specified number of performance shares are
allocated to each unit and are awarded to participants in the discretion of
their managers in accordance with recommended targets related to the number of
employees in a unit that may receive an award and the number of shares to be
awarded. The performance shares have a three year vesting schedule and, at the
end of the three years, the actual number of shares distributed to those who
received awards may be equal to, greater than or less than the amount of the
award based on Lincoln's achievement of certain performance goals relative to a
pre-determined peer group.
Other Compensation: Portfolio managers may also participate in benefit
plans and programs available generally to all employees.
Ownership of Securities
As of November 30, 2006, the Funds' portfolio managers owned the following
amounts of Fund shares:
Dollar Range Of Fund
Portfolio Manager Shares Owned (1)
_________________ _______________
Damon J. Andres none
Edward A. Gray none
Jordan L. Irving none
Nikhil G. Lalvani none
Anthony A. Lombardi none
Zoe A. Neale none
Ty Nutt none
Philip R. Perkins none
Timothy L. Rabe none
Robert A. Vogel, Jr. none
Nashira S. Wynn none
Babak Zenouzi none
(1) Includes Fund shares beneficially owned by portfolio manager and
immediate family members sharing the same household.
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
(a) 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.
(b) Management has made changes that have materially affected, or are
reasonably likely to materially affect, registrant's internal controls over
financial reporting. To seek to increase the controls' effectiveness, these
changes provide for enhanced review of contracts relating to complex
transactions and the applicability of generally accepted accounting principles
to such transactions, including enhanced consultation with registrant's
independent public accountants in connection with such reviews.
Because of its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements. Also, projections of any
evaluation of effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in conditions, or that the
degree of compliance with the policies or procedures may deteriorate.
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:
PATRICK P. COYNE
______________________________
By: Patrick P. Coyne
Title: Chief Executive Officer
Date: February 6, 2007
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: Chief Executive Officer
Date: February 6, 2007
RICHARD SALUS
______________________________
By: Richard Salus
Title: Chief Financial Officer
Date: February 6, 2007