DELAWARE INVESTMENTS GLOBAL DIVIDEND & INCOME FUND, INC - Notes to Mutual Funds Financial Statements - 7-31-1995 by DGF-Agreements

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									Notes to Financial Statements
May 31, 1995
(Unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES Delaware Group Global Dividend and Income Fund, Inc. (the
"Fund") is a diversified, closed-end management investment company organized under the laws of Maryland and
is registered under the Investment Company Act of 1940, as amended. The Fund had no operations prior to
March 4, 1994, other than the sale of 7,447 shares of common stock for $105,000 to Delaware Management
Company, Inc., the investment manager of the Fund, on February 18, 1994.

Portfolio securities listed or traded on a national securities exchange, except for debt securities, are valued at the
last sale price on the exchange where they are primarily traded. Securities listed on a foreign exchange are valued
at the last quoted sale price before the time when the Fund is valued. Securities not traded on a particular day,
over-the-counter securities and government and agency securities are valued at the mean value between bid and
asked prices. Short-term instruments having a maturity of less than 60 days are valued at amortized cost. Debt
securities (other than short-term obligations) are valued on the basis of valuations provided by a pricing service
when such prices are believed to reflect the fair value of such securities. All assets and liabilities that are
expressed in foreign currencies are valued and translated into U.S. dollars at the exchange rate of such currencies
against the U.S. dollar as provided by the pricing service as of 3:30 pm New York time; this constitutes a change
from the times recited in the Fund's prospectus for the valuation of securities and translation of foreign currencies
into U.S. dollars. Forward foreign currency contracts are valued at the mean between the bid an asked prices of
the contracts. Interpolated values are derived when the settlement date of the contract is on an interim date for
which quotations are not available.

Security transactions are accounted for on the date the securities are purchased or sold (trade date). Gains and
losses are based upon the specific identification method for both financial statement and federal tax purposes.
Dividend income and distributions to shareholders are recorded on the ex-dividend date. 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. Interest income and expenses are recorded on the accrual
basis.

A total of $124,000 was incurred in connection with organization of the Fund. These costs were deferred and are
being amortized ratably over a five-year period from the date the Fund commenced operations.

No provision for federal income taxes has been made since it is the intention of the Fund to comply with the
provisions of the Internal Revenue Code available to regulated investment companies and to make requisite
distributions to shareholders.
2. INVESTMENT MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES In
accordance with the terms of the Investment Management Agreement, the compensation paid to Delaware
Management Company, Inc. (DMC) is equal to (on an annual basis) 0.70% of the Fund's average weekly net
assets. The Fund has also entered into an advisory agreement with Delaware International Advisers Ltd. (DIAL)
(the "Sub-Adviser"). For the services provided to the Manager, the Manager pays the Sub-Adviser a monthly fee
equal to 40% of the fee paid to the Manager under the terms of the Investment Management Agreement. The
Fund has also entered into an Administration Agreement with Middlesex Administrators L.P., the administrator of
the Fund, which provides for payment, subject to an annual minimum fee of $150,000, of a monthly fee
computed at the annual rate of 0.21% of the Fund's average weekly net assets.

Certain officers, directors and shareholders of DMC are officers and/or directors of the Fund. Officers, directors
and employees of DMC, who are also officers, directors and/or employees of the Fund, do not receive any
compensation from the Fund.

On May 31, 1995, the Fund had investment management fees payable to DMC of $52,452. In addition, the
Fund had administrative fees payable to Middlesex Administrators L.P. of $15,736.

On April 3, 1995, Delaware Management Holdings, Inc., the indirect parent of DMC and DIAL, through a
merger transaction (the "Merger") became a wholly-owned subsidiary of Lincoln National Corporation. Other
than the resulting change in ownership, the Merger will not materially change the manner in which DMC and
DIAL have heretofore conducted their relationship with the Fund.

An annual meeting of shareholders was held on March 29, 1995. The matters submitted to a vote of shareholders
were the election of directors, the approval of a new investment management agreement and a new sub-advisory
agreement, and the ratification of the selection of Ernst & Young LLP as independent auditors of the Fund. The
new investment management agreement and sub-advisory agreement were submitted for shareholder approval in
connection with the Merger noted above because the Investment Company Act of 1940 requires shareholders to
vote on new investment management and sub-advisory agreements whenever there is a change in control of an
investment manager.

                                                       13
The names of each director elected at the meeting along with the final vote tabulation with respect to each
nominee and each matter were as follows:

                                                                 NUMBER OF VOTES
                                                       -----------------------------------------
                                                       FOR      AGAINST/WITHHELD     ABSTENTIONS
                                                       ---      ----------------     -----------
           Election of Directors:
           Wayne A. Stork                    4,966,637                 81,204                 --
           Walter P. Babich                  4,967,217                 80,624                 --
           Anthony D. Knerr                  4,966,407                 81,434                 --
           Ann R. Leven                      4,966,857                 80,984                 --
           W.Thacher Longstreth              4,966,580                 81,262                 --
           Charles E. Peck                   4,966,957                 80,884                 --
           Approval of the New Investment
             Management Agreement            4,834,631                 74,911               138,300
           Approval of the New
             Sub-Advisory Agreement          4,822,662                 74,628               150,552
           Selection of Ernst & Young LLP as
             Independent Auditors            4,942,385                 30,592                84,865




3. INVESTMENTS Investment securities based on cost for federal income tax purposes at May 31, 1995, are
as follows:

              Cost of investments....................................                 $90,185,076
              Aggregate unrealized appreciation .....................                   3,746,710
              Aggregate unrealized depreciation .....................                  (3,612,795)
                                                                                      -----------
              Market value of investments ...........................                 $90,318,991
                                                                                      ===========




Net realized loss based on cost of specific certificate or bond for federal income tax purposes was $1,743,553
for the six months ended May 31, 1995. For federal income tax purposes, the Fund had accumulated net capital
losses at November 30, 1994, of $1,314,888 which may be carried forward and applied against future capital
gains. The capital loss carryforward expires in 2002.

During the six months ended May 31, 1995, the Fund had purchases of $27,993,120 and sales of $29,992,639
of investment securities, other than U.S. Government securities and short-term debt securities having maturities of
one year or less.

On May 31, 1995, the Fund had a receivable for investment securities sold of $368,897 and a payable for
investment securities purchased of $2,283,592.
4. FORWARD FOREIGN EXCHANGE CONTRACTS The Fund will, from time to time, enter into foreign
currency exchange contracts. There are costs and risks associated with such currency transactions. No type of
foreign currency transaction will eliminate fluctuations in the prices of the Fund's foreign securities or will prevent
loss if the prices of such securities should decline. Forward foreign exchange contracts as of May 31, 1995, are
as follows:

                                                                                                   IN
                                                                               UNREALIZED        EXCHANGE
             CONTRACT TO DELIVER                     SETTLEMENT DATE          DEPRECIATION         FOR

             18,000,000 Swedish Kronas                   7/31/95               $(17,253)      $2,434,011




5. CONCENTRATION OF CREDIT RISK The Fund may invest in high-yield fixed income securities which
carry ratings of CCC or lower by S&P and/or Caa or lower by Moody's. Investments in these higher yielding
securities may be 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 in securities whose value is derived from an underlying pool of mortgages or consumer
loans. Prepayment of these loans may shorten the stated maturity of the respective obligation and may result in a
loss of premium, if any has been paid.

The Fund may invest up to 10% of its total assets in illiquid securities which 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 some of these
securities may adversely affect the Fund's ability to dispose of such securities in a timely manner and at a fair price
when it is necessary to liquidate such securities. These securities have been denoted in the Statement of Net
Assets.

                                                           14
6. GEOGRAPHIC DISCLOSURE As of May 31, 1995, the Fund's geographic diversification was as follows:

                                                                        PERCENTAGE OF
                                                                       TOTAL SECURITIES
                           COUNTRY*                                        AT VALUE

                           United States.............                       63.15%
                           United Kingdom............                        7.35%
                           Australia.................                        6.42%
                           Greece....................                        5.25%
                           South Africa..............                        4.18%
                           Spain.....................                        3.56%
                           Sweden....................                        2.62%
                           Canada....................                        2.60%
                           France....................                        1.62%
                           New Zealand...............                        0.84%
                           Hong Kong.................                        0.81%
                           Belgium...................                        0.73%
                           Netherlands...............                        0.50%
                           Finland...................                        0.23%
                           Indonesia.................                        0.14%
                                                                           ------
                           Total.....................                      100.00%
                                                                           ======




Like any investment in securities, the value of the portfolio may be subject to risk or loss from market, currency,
economic and political factors which occur in the countries where the Fund is invested.

* Based on the country of the currency in which each security is denominated.

7. CAPITAL STOCK There are 500,000,000 shares of $0.01 par value capital stock authorized.

The Fund sold 6,700,000 shares in its initial public offering.

Under the Share Repurchase Program, the Fund repurchased 56,800 shares at a weighted average discount of
4.29% per share during the six months ended May 31, 1995.

On June 2, 1995, the Fund declared its monthly dividend in the amount of $0.093 per share. This dividend is
payable June 30, 1995, to stockholders of record at the close of business on June 16, 1995. The ex-dividend
date was June 14, 1995.

Shares issuable under the Fund's dividend reinvestment plan are purchased by the Fund's transfer agent, IFTC in
the open market.
8. FINANCIAL HIGHLIGHTS Selected data for each share outstanding throughout the period were as follows:

                                                             SIX MONTHS ENDED     FOR THE PERIOD
                                                               MAY 31, 1995        MARCH 4, 1994*
                                                               (UNAUDITED)      TO NOVEMBER 30, 1994

          Net asset value, beginning of period ......           $ 13.09              $ 14.00+
                                                                --------             --------
          Income from investment operations:
            Net investment income....................               0.59                  0.84
            Net realized and unrealized gain/(loss)
             on securities...........................                0.64               (1.05)
                                                                 --------            --------
             Net increase (decrease) in net assets
              from investment operations .............               1.23               (0.21)
                                                                 --------            --------

          Less distributions:
            Dividends from net investment income ....              (0.71)               (0.70)
                                                                --------             --------
             Total distributions......................             (0.71)               (0.70)
                                                                --------             --------
          Net asset value, end of period ............           $ 13.61              $ 13.09
                                                                ========             ========
          Market value, end of period ...............           $ 13.00              $ 11.75
                                                                ========             ========
          Total investment return based on: (1)
            Market value.............................              17.15%              (17.15%)
                                                                ========             ========
             Net asset value..........................             10.10%               (1.11%)
                                                                ========             ========

          Ratios/Supplemental Data:
            Net assets, end of period (000's
             omitted) ...............................            $90,530              $87,780
                                                                ========             ========
            Ratio of expenses to average
             net assets..............................               1.22%**               1.32%**
            Ratio of net investment income
             to average net assets...................               8.73%**               8.54%**
          Portfolio turnover.........................                 33%                   86%




* Commencement of operations. ** Annualized.
+ Net of offering costs of $0.10 charged to paid-in capital with respect to issuance of common shares.
(1) Total investment return is calculated assuming a purchase of common stock on the opening of the first day and
a sale on the closing of the last day of each period reported. Dividends and distributions, if any, are assumed for
the purposes 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 a 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. The total investment returns based on market value and net asset value have
not been annualized.

                                                        15
9. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

                                                                       NET REALIZED AND           NET INCREASE
                                                                    UNREALIZED GAIN(LOSS)         (DECREASE) I
                           INVESTMENT          NET INVESTMENT        ON INVESTMENTS AND       NET ASSETS RESUL
QUARTER ENDED                 INCOME                INCOME           FOREIGN CURRENCIES          FROM OPERATIO
- ------------           -----------------      ----------------      --------------------     ---------------
                       TOTAL          PER     TOTAL        PER      TOTAL         PER          TOTAL        PE
                       (000)         SHARE    (000)      SHARE      (000)        SHARE         (000)       SHA
                      -------      -----     ------      -----     -------      ------       -------      ----

May 31, 1994 *.....  $2,078       $0.31      $1,794    $0.27       ($3,661)     ($0.54)      ($1,867)     ($0.
August 31, 1994 ..    2,231        0.33       1,930     0.29           491        0.07         2,421        0.
November 30, 1994 .   2,245        0.34       1,904     0.28        (3,874)      (0.58)       (1,970)      (0.
                    -------       -----      ------    -----       -------      ------       -------      ----
                     $6,554       $0.98      $5,628    $0.84       ($7,044)     ($1.05)      ($1,416)     ($0.
                    =======       =====      ======    =====        ======       =====       =======      ====
February 28, 1995 . $2,146        $0.32      $1,837    $0.27        $1,362       $0.20        $3,199       $0.
May 31, 1995.......   2,245        0.34       1,980     0.30         3,052        0.46         5,032        0.
                    -------       -----      ------    -----       -------      ------       -------      ----
                     $4,391       $0.66      $3,817    $0.57        $4,414       $0.66        $8,231       $1.
                    =======       =====      ======    =====        ======       =====       =======      ====




* The Fund commenced operations on March 4, 1994.
+ As reported on the New York Stock Exchange

                                                  16
Board of Directors

WAYNE A. STORK*
Chairman
Delaware Group of Funds
Dividend and Income Fund
Philadelphia, PA

WALTER P. BABICH
Board Chairman
Citadel Constructors, Inc.
King of Prussia, PA

ANTHONY D. KNERR
Consultant
Anthony Knerr & Associates
New York, NY

ANN R. LEVEN
Deputy Treasurer
National Gallery of Art
Washington, DC

W. THACHER LONGSTRETH
Vice Chairman
Packquisition Corp.
Philadelphia, PA

CHARLES E. PECK
Secretary,
Enterprise Homes, Inc.
Columbia, MD

Audit Committee

WALTER P. BABICH
ANN R. LEVEN
ANTHONY D. KNERR

Executive Officers

BRIAN F. WRUBLE
President and CEO

WINTHROP S. JESSUP
Executive Vice President

DAVID K. DOWNES
Senior Vice President/Chief Administrative Officer/Chief Financial Officer

GEORGE M. CHAMBERLAIN, JR.
Senior Vice President/Secretary

*Officer and Director
Delaware Group of Funds

FOR GROWTH OF CAPITAL
Trend Fund
DelCap Fund
Value Fund

FOR TOTAL RETURN
Dividend Growth Fund
Decatur Total Return Fund
Decatur Income Fund
Delaware Fund

FOR GLOBAL
DIVERSIFICATION
International Equity Fund
Global Assets Fund
Global Bond Fund

FOR CURRENT INCOME
Delchester Fund
U.S. Government Fund
Treasury Reserves
Intermediate Fund

FOR TAX-FREE
CURRENT INCOME
Tax-Free USA Fund
Tax-Free Insured Fund
Tax-Free USA
Intermediate Fund
Tax-Free Pennsylvania Fund

MONEY MARKET FUNDS
Delaware Cash Reserve
U.S. Government Money Fund
Tax-Free Money Fund

CLOSED-END EQUITY/INCOME
Dividend and Income Fund
Global Dividend and
Income Fund
The Delaware Group includes funds with a wide range of investment objectives. Stock funds, income funds, tax-
free funds, money market funds, closed-end equity/income funds and global funds give investors the ability to
create a portfolio that fits their personal financial goals. For more information, including a prospectus of any
Delaware Group fund, contact your financial adviser or call the Delaware Group at
800-523-4640 or 215-988-1333 in Philadelphia. Read the Prospectus carefully before investing.
BE SURE TO CONSULT YOUR FINANCIAL ADVISER
WHEN MAKING INVESTMENTS. FUNDS CAN BE A
VALUABLE PART OF YOUR FINANCIAL PLAN; HOWEVER, SHARES OF THE FUND ARE NOT
FDIC OR NCUSIF INSURED, ARE NOT GUARANTEED BY ANY BANK OR ANY CREDIT UNION,
ARE NOT OBLIGATIONS OF ANY BANK OR ANY CREDIT UNION, AND INVOLVE
INVESTMENT RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL. SHARES OF THE FUND
ARE NOT BANK OR CREDIT UNION DEPOSITS.

                                   PRINCIPAL OFFICE OF THE FUND
                                          1818 Market Street
                                         Philadelphia, PA 19103

                                        INVESTMENT MANAGER

Delaware Management Company, Inc.
Philadelphia

                                              SUB-ADVISER
                                      Delaware International Advisers Ltd.

London

                                       INDEPENDENT AUDITORS

Ernst & Young LLP
2001 Market Street
Philadelphia, PA 19103

                            REGISTRAR AND STOCK TRANSFER AGENT

Investors Fiduciary Trust Company
210 West 10th Street
Kansas City, MO 64105
800-596-8396

                                    NUMBER OF RECORDHOLDERS
                                        AS OF MAY 31, 1995
                                               392

                                            GDIF-02[5/95]PP795
            DELAWARE GROUP
A TRADITION OF SOUND INVESTING SINCE 1929

                  PHOTO OF
               COLONIAL OBJECTS

                   |
      1995         |
                   |
      SEMI-        |
                   |
      ANNUAL       |
                   |
      REPORT       |   DELAWARE
                   |   GROUP
                   |   ========
                   |   Global Dividend and
                   |   Income Fund
                   |
                   |

								
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