-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LxsNbNUqLINNs3wb0T73Tu4wMVdQNPe5z/0zgbP1StgBR4eg+ZRtpInOWXWjrvAm OHAavE+OZrikphKwWGloUQ== 0000950116-03-003376.txt : 20030806 0000950116-03-003376.hdr.sgml : 20030806 20030806141509 ACCESSION NUMBER: 0000950116-03-003376 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030531 FILED AS OF DATE: 20030806 EFFECTIVENESS DATE: 20030806 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DELAWARE INVESTMENTS GLOBAL DIVIDEND & INCOME FUND INC CENTRAL INDEX KEY: 0000916713 IRS NUMBER: 232753201 STATE OF INCORPORATION: MD FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-08246 FILM NUMBER: 03825856 BUSINESS ADDRESS: STREET 1: 2005 MARKET STREET CITY: PHILADELPHIA STATE: PA ZIP: 19103 BUSINESS PHONE: 2152552127 MAIL ADDRESS: STREET 1: 2005 MARKET STREET STREET 2: . CITY: PHILADELPHIA STATE: PA ZIP: 19103 FORMER COMPANY: FORMER CONFORMED NAME: DELAWARE GROUP GLOBAL DIVIDEND & INCOME FUND INC DATE OF NAME CHANGE: 19931229 N-CSR 1 ncsr.txt N-CSR UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number: 811-8246 Exact name of registrant as specified in charter: Delaware Investments Global Dividend and Income Fund, Inc. Address of principal executive offices: 2005 Market Street Philadelphia, PA 19103 Name and address of agent for service: Richelle S. Maestro, Esq. 2005 Market Street Philadelphia, PA 19103 Registrant's telephone number, including area code: (800) 523-1918 Date of fiscal year end: 11/30 Date of reporting period: 5/31 Item 1. Reports to Stockholders Delaware Investments(SM) -------------------------------------- CLOSED-END A member of Lincoln Financial Group(R) Semiannual Report 2003 - -------------------------------------------------------------------------------- DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC. [Graphic Omitted: Logo] POWERED BY RESEARCH.(SM) Table OF CONTENTS - --------------------------------------------------- FINANCIAL STATEMENTS: Statement of Net Assets 1 Statement of Operations 8 Statements of Changes in Net Assets 9 Statement of Cash Flows 9 Financial Highlights 10 Notes to Financial Statements 11 - --------------------------------------------------- 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)2003 Delaware Distributors, L.P. Statement Delaware Investments Global Dividend and Income Fund, Inc. OF NET ASSETS May 31, 2003 (Unaudited) Number of Market Shares Value (U.S.$) - -------------------------------------------------------------------------------- Common Stock - 60.43% - -------------------------------------------------------------------------------- Aerospace & Defense - 0.69% Raytheon 14,500 $ 464,580 ---------- 464,580 ---------- Automobiles & Automotive Parts - 0.82% General Motors 10,200 360,366 GKN 56,000 186,998 ---------- 547,364 ---------- Banking, Finance & Insurance - 10.79% Aviva 40,981 298,544 Banco Santander Central Hispano 39,771 318,412 Bank of America 8,300 615,860 Bayerische Hypo Vereinsbank 13,011 178,279 Friedman Billings Ramsey Group 25,940 345,002 HBOS 38,912 453,220 ING Groep NV 21,489 344,079 IntesaBci 173,225 550,906 J.P. Morgan Chase 17,900 588,194 Lloyds TSB Group 51,257 374,511 Mellon Financial 20,700 562,419 Morgan Stanley & Co. 15,800 722,850 National Australia Bank 23,285 504,870 Sanlam 243,434 198,134 Societe Generale - Class A 7,479 456,240 Wells Fargo 15,100 729,329 ---------- 7,240,849 ---------- Building & Materials - 1.30% Compagnie de Saint Gobain 12,800 485,319 CSR 45,172 54,752 Rinker Group 12,746 38,207 Wharf Holdings 153,000 295,171 ---------- 873,449 ---------- Chemicals - 2.81% Air Products & Chemicals 11,000 479,490 Bayer 16,433 335,395 Dow Chemical 25,500 810,900 Orica 39,363 257,763 ---------- 1,883,548 ---------- Computers & Technology - 1.48% International Business Machines 5,100 449,004 Pitney Bowes 14,100 541,581 ---------- 990,585 ---------- Consumer Products - 1.35% Kimberly-Clark 10,000 519,300 Procter & Gamble 4,200 385,644 ---------- 904,944 ---------- Electronics & Electrical Equipment - 1.77% Canon 6,000 255,490 Emerson Electric 10,000 523,000 Hong Kong Electric 103,000 410,745 ---------- 1,189,235 ---------- Number of Market Shares Value (U.S.$) - -------------------------------------------------------------------------------- Common Stock (continued) - -------------------------------------------------------------------------------- Energy - 3.50% ChevronTexaco 8,300 $ 588,803 ConocoPhillips 9,821 530,039 Kerr-McGee 11,600 551,928 Royal Dutch Petroleum 9,230 420,384 Sasol 22,137 260,125 ---------- 2,351,279 ---------- Food, Beverage & Tobacco - 4.73% Foster's Group 178,521 499,404 *General Mills 14,300 668,954 Heinz (H.J.) 22,000 727,540 Kellogg 14,500 510,400 ++Mitchells & Butlers 41,125 142,166 PepsiCo 14,200 627,640 ---------- 3,176,104 ---------- Healthcare & Pharmaceuticals - 5.13% Abbott Laboratories 12,500 556,875 Biomet 15,900 437,250 Bristol-Myers Squibb 22,200 568,320 Eisai Co. 9,700 202,249 GlaxoSmithKline 24,406 486,895 Merck & Co. 10,400 578,032 Wyeth 14,000 613,900 ---------- 3,443,521 ---------- Industrial Machinery - 1.13% Brambles Industries 71,495 185,624 *Caterpillar 11,000 573,650 ---------- 759,274 ---------- Investment Companies - 0.83% *Gladstone Capital 29,200 560,348 ---------- 560,348 ---------- Leisure, Lodging & Entertainment - 0.43% ++Intercontinental Hotels 41,125 291,238 ---------- 291,238 ---------- Metals & Mining - 0.56% Rio Tinto 18,880 373,648 ---------- 373,648 ---------- Paper & Forest Products - 2.11% Amcor 78,646 422,555 Carter Holt Harvey 18,731 17,213 International Paper 16,400 601,388 *Weyerhaeuser 7,500 377,850 ---------- 1,419,006 ---------- Real Estate - 9.97% AMB Property 18,300 501,603 Apartment Investment & Management 14,500 510,835 Camden Property Trust 10,000 347,400 Duke Realty 26,000 737,879 Liberty Property Trust 21,042 700,067 1 Statement Delaware Investments Global Dividend OF NET ASSETS (CONTINUED) and Income Fund, Inc. Number of Market Shares Value (U.S.$) - -------------------------------------------------------------------------------- Common Stock (continued) - -------------------------------------------------------------------------------- Common Stock (continued) Real Estate (continued) *Macerich 18,000 $ 621,000 Pan Pacific Retail Properties 17,600 691,504 Prentiss Properties Trust 21,308 614,949 Ramco-Gershenson Properties 18,400 430,376 *Reckson Associates Realty 28,100 569,025 *Simon Property Group 8,000 300,960 Starwood Hotels & Resorts Worldwide 17,000 492,660 Sun Communities 4,400 173,404 ----------- 6,691,662 ----------- Retail - 2.28% Boots Group 55,874 564,581 Coles Myer 91,055 398,668 GUS 52,478 540,649 *++Kmart Holdings 1,602 25,472 ----------- 1,529,370 ----------- Telecommunications - 3.65% *BellSouth 12,000 318,120 Cable & Wireless 50,300 84,057 Telecom Corporation of New Zealand 189,000 579,830 ++Telefonica 45,877 519,832 Telstra 153,982 454,217 Verizon Communications 13,054 494,094 ----------- 2,450,150 ----------- Transportation & Shipping - 1.57% ++British Airways 93,000 214,958 Union Pacific 10,000 609,900 West Japan Railway 63 227,479 ----------- 1,052,337 ----------- Utilities - 3.53% BG Group 113,689 506,004 Dominion Resources 8,900 560,701 Electrabel 1,237 314,861 Endesa 5,134 82,359 Iberdrola 29,226 510,800 RWE 13,740 398,351 ----------- 2,373,076 ----------- Total Common Stock (cost $40,220,885) 40,565,567 ----------- - -------------------------------------------------------------------------------- Convertible Preferred Stock - 5.77% - -------------------------------------------------------------------------------- Aerospace & Defense - 0.57% *Northrop Grumman 7.25% 3,850 384,808 ----------- 384,808 ----------- Banking, Finance & Insurance - 2.13% *Sovereign Bancorp 7.50% 13,000 1,131,000 Travelers Property Casualty 4.50% 12,000 299,400 ----------- 1,430,400 ----------- Number of Market Shares Value (U.S.$) - -------------------------------------------------------------------------------- Convertible Preferred Stock (continued) - -------------------------------------------------------------------------------- Environmental Services - 0.35% Allied Waste Industries 6.25% 4,000 $ 236,000 ---------- 236,000 ---------- Real Estate - 2.11% General Growth Properties 7.25% 38,700 1,416,033 ---------- 1,416,033 ---------- Transportation & Shipping - 0.61% +Union Pacific Capital Trust TIDES 144A 6.25% 7,891 408,359 ---------- 408,359 ---------- Total Convertible Preferred Stock (cost $2,828,250) 3,875,600 ---------- - -------------------------------------------------------------------------------- Preferred Stock - 2.17% - -------------------------------------------------------------------------------- Cable, Media & Publishing - 0.12% *CSC Holdings 11.75% 800 83,800 ---------- 83,800 ---------- Metals & Mining - 0.01% ++Weirton Steel 8,550 4,361 ---------- 4,361 ---------- Real Estate - 1.42% LaSalle Hotel Properties 10.25% 23,500 646,285 Ramco-Gershenson Properties 9.50% 11,500 307,510 ---------- 953,795 ---------- Utilities - 0.62% Public Service Enterprise Group 10.25% 6,800 413,100 ---------- 413,100 ---------- Total Preferred Stock (cost $1,344,610) 1,455,056 ---------- Principal Amount** - -------------------------------------------------------------------------------- Convertible Bonds - 4.81% - -------------------------------------------------------------------------------- Automobiles & Automotive Parts - 1.30% MascoTech 4.50% 12/15/03 USD 900,000 868,499 ---------- 868,499 ---------- Computers & Technology - 0.41% +Mercury Interactive 144A 4.75% 7/1/07 275,000 275,688 ---------- 275,688 ---------- Energy - 0.31% Duke Energy 1.75% 5/15/23 200,000 209,000 ---------- 209,000 ---------- Leisure, Lodging & Entertainment - 0.20% +Regal Entertainment 144A 3.75% 5/15/08 130,000 136,175 ---------- 136,175 ---------- 2 Statement Delaware Investments Global Dividend OF NET ASSETS (CONTINUED) and Income Fund, Inc. Principal Market Amount** Value (U.S.$) - -------------------------------------------------------------------------------- Convertible Bonds (continued) - -------------------------------------------------------------------------------- Miscellaneous - 0.16% *+Tyco International Group 144A 2.75% 1/15/18 USD 100,000 $ 107,375 ---------- 107,375 ---------- Retail - 0.99% +Gap 144A 5.75% 3/15/09 500,000 665,000 ---------- 665,000 ---------- Telecommunications - 0.30% +Nextel Partners 144A 1.50% 11/15/08 200,000 203,500 ---------- 203,500 ---------- Transportation & Shipping - 0.80% Continental Airlines 4.50% 2/1/07 750,000 537,188 ---------- 537,188 ---------- Utilities - 0.34% +Centerpoint Energy 144A 3.75% 5/15/23 200,000 227,000 ---------- 227,000 ---------- Total Convertible Bonds (cost $3,094,913) 3,229,425 ---------- - -------------------------------------------------------------------------------- Non-Convertible Bonds - 14.68% - -------------------------------------------------------------------------------- Automobiles & Automotive Parts - 0.18% +Advanced Accessory Systems 144A 10.75% 6/15/11 40,000 41,000 CSK Auto 12.00% 6/15/06 70,000 77,350 ---------- 118,350 ---------- Banking, Finance & Insurance - 0.56% Athena Nuerosciences Finance 7.25% 2/21/08 85,000 68,851 +Bluewater Finance 144A 10.25% 2/15/12 30,000 30,450 +Crum & Forster 144A 10.375% 6/15/13 40,000 39,100 +Farmers Exchange Capital 144A 7.20% 7/15/48 30,000 24,284 +Farmers Insurance Exchange 144A 8.625% 5/1/24 15,000 13,838 Finova Group 7.50% 11/15/09 130,000 53,625 +Gemstone Investor 144A 7.71% 10/31/04 45,000 44,100 +Interline Brands 144A 11.50% 5/15/11 35,000 36,050 Tig Holdings 8.125% 4/15/05 55,000 51,975 +Zurich Capital Trust I 144A 8.376% 6/1/37 15,000 16,445 ---------- 378,718 ---------- Building & Materials - 0.63% *Foster Wheeler 6.75% 11/15/05 105,000 75,075 *K Hovnanian Enterprises 7.75% 5/15/13 55,000 56,238 +Lone Star Industries 144A 8.85% 6/15/05 60,000 59,100 Schuler Homes 10.50% 7/15/11 55,000 61,875 Standard Pacific 9.25% 4/15/12 55,000 59,400 Technical Olympic USA 10.375% 7/1/12 60,000 63,000 *United States Steel 9.75% 5/15/10 50,000 49,750 ---------- 424,438 ---------- Principal Market Amount** Value (U.S.$) - -------------------------------------------------------------------------------- Non-Convertible Bonds (continued) - -------------------------------------------------------------------------------- Cable, Media & Publishing - 2.23% American Media Operation 10.25% 5/1/09 USD 55,000 $ 59,813 Charter Communications *10.75% 10/1/09 205,000 150,674 #13.50% 1/15/11 330,000 160,049 CSC Holdings 10.50% 5/15/16 135,000 150,862 *Dex Media East LLC 12.125% 11/15/12 95,000 111,624 +DirecTV Holdings 144A 8.375% 3/15/13 55,000 61,188 Echostar DBS 10.375% 10/1/07 90,000 99,788 +Hollinger 144A 11.875% 3/1/11 45,000 47,475 +Lamar Media 144A 7.25% 1/1/13 35,000 36,281 *Lodgenet Entertainment 10.25% 12/15/06 85,000 86,700 Mediacom Broadband 11.00% 7/15/13 70,000 77,350 Nextmedia Operating 10.75% 7/1/11 75,000 82,500 PanAmSat 8.50% 2/1/12 45,000 48,375 +PEI Holdings 144A 11.00% 3/15/10 45,000 49,275 +RH Donnelley Finance 144A 10.875% 12/15/12 30,000 34,125 Vertis 10.875% 6/15/09 85,000 82,450 +144A 9.75% 4/1/09 45,000 46,238 +Vivendi Universal 144A 9.25% 4/15/10 40,000 45,650 #XM Satellite Radio 14.00% 12/31/09 95,000 69,113 ---------- 1,499,530 ---------- Chemicals - 0.93% *+Huntsman International 144A 9.875% 3/1/09 100,000 102,500 IMC Global 6.55% 1/15/05 25,000 25,000 7.625% 11/1/05 70,000 71,050 *Lyondell Chemical 9.50% 12/15/08 45,000 43,313 MacDermid 9.125% 7/15/11 60,000 66,900 +Omnova Solutions 144A 11.25% 6/1/10 105,000 109,725 +Polyone Corporate 144A 10.625% 5/15/10 35,000 33,425 *+Rhodia SA 144A 8.875% 6/1/11 65,000 65,650 SOI Funding 11.25% 7/15/09 55,000 45,375 *Solutia 6.72% 10/15/37 85,000 62,475 ---------- 625,413 ---------- Computers & Technology - 0.06% +Amkor Technologies 144A 7.75% 5/15/13 25,000 23,844 Asat Finance 12.50% 11/1/06 22,750 18,314 ---------- 42,158 ---------- Consumer Products - 0.65% *American Greetings 11.75% 7/15/08 110,000 128,013 +Jafra Cosmetics 144A 10.75% 5/15/11 75,000 76,875 +Levi Strauss 144A 12.25% 12/15/12 55,000 46,200 +Phillips Van Heusen 144A 8.125% 5/1/13 35,000 36,050 *Salton 12.25% 4/15/08 95,000 89,775 Samsonite 10.75% 6/15/08 55,000 55,275 Venture Holdings Trust 12.00% 6/1/09 95,000 1,900 ---------- 434,088 ---------- 3 Statement Delaware Investments Global Dividend OF NET ASSETS (CONTINUED) and Income Fund, Inc. Principal Market Amount** Value (U.S.$) - -------------------------------------------------------------------------------- Non-Convertible Bonds (continued) - -------------------------------------------------------------------------------- Consumer Services - 0.27% Alderwoods Group 12.25% 1/2/09 USD 80,000 $ 83,600 +Brickman Group 144A 11.75% 12/15/09 30,000 33,525 Corrections Corporate 7.50% 5/1/11 65,000 66,788 ---------- 183,913 ---------- Electronics & Electrical Equipment - 0.23% +Sanmina - SCI Corp 144A 10.375% 1/15/10 140,000 156,100 ---------- 156,100 ---------- Energy - 1.80% +Citgo Petroleum 144A 11.375% 2/1/11 105,000 117,600 Dynegy Holdings *6.75% 12/15/05 30,000 27,450 6.875% 4/1/11 30,000 24,150 *El Paso 7.00% 5/15/11 45,000 38,925 El Paso Natural Gas 6.75% 11/15/03 40,000 40,250 +144A 8.375% 6/15/32 30,000 30,750 *+El Paso Production 144A 7.75% 6/1/13 135,000 134,662 +Frontier Escrow 144A 8.00% 4/15/13 75,000 77,438 *Hanover Equipment Trust 8.50% 9/1/08 55,000 56,375 Key Energy Service 6.375% 5/1/13 120,000 122,099 +++Petroleum Geo-Services 6.25% 11/19/03 60,000 36,300 +Semco Energy 144A 7.75% 5/15/13 55,000 58,300 +Southern Natural Gas 144A 8.875% 3/15/10 35,000 38,150 Tennessee Gas Pipeline 8.375% 6/15/32 70,000 71,750 *+Tesoro Pete 144A 8.00% 4/15/08 95,000 95,475 Transcontinental Gas Pipeline 6.125% 1/15/05 35,000 35,350 6.25% 1/15/08 45,000 44,775 8.875% 7/15/12 75,000 83,250 *Williams - Series A 7.50% 1/15/31 40,000 34,000 *Williams Companies 6.625% 11/15/04 40,000 39,400 ---------- 1,206,449 ---------- Environmental Services - 0.23% +Casella Waste Systems 144A 9.75% 2/1/13 45,000 47,475 *IESI 10.25% 6/15/12 100,000 105,000 ---------- 152,475 ---------- Food, Beverage & Tobacco - 0.59% B&G Foods 9.625% 8/1/07 115,000 118,306 Denny's Corp/Denny's Holdings 12.75% 9/30/07 115,000 118,450 DiGiorgio 10.00% 6/15/07 95,000 94,525 National Wine & Spirits 10.125% 1/15/09 75,000 67,125 ---------- 398,406 ---------- Healthcare & Pharmaceuticals - 0.20% +Ameripath 144A 10.50% 4/1/13 35,000 36,575 []+HMP Equity 144A 15.433% 5/15/08 30,000 14,400 Team Health 12.00% 3/15/09 80,000 82,000 ---------- 132,975 ---------- Principal Market Amount** Value (U.S.$) - -------------------------------------------------------------------------------- Non-Convertible Bonds (continued) - -------------------------------------------------------------------------------- Industrial Machinery - 0.09% *Amkor Technology 9.25% 2/15/08 USD 55,000 $ 57,475 ---------- 57,475 ---------- Leisure, Lodging & Entertainment - 1.18% Alliance Gaming Series B 10.00% 8/1/07 45,000 46,913 Extended Stay America 9.875% 6/15/11 45,000 47,138 +Hard Rock Hotel 144A 8.875% 6/1/13 55,000 56,788 Herbst Gaming 10.75% 9/1/08 75,000 82,312 *MeriStar Hospitality Operating Partnership 10.50% 6/15/09 55,000 53,763 Penn National Gaming 11.125% 3/1/08 60,000 66,000 *Regal Cinemas 9.375% 2/1/12 120,000 131,099 *Royal Caribbean 8.75% 2/2/11 150,000 151,499 *Six Flags 9.75% 6/15/07 55,000 55,413 +Town Sports International 144A 9.625% 4/15/11 25,000 26,125 +Turning Stone Casino Resort Enterprise 144A 9.125% 12/15/10 70,000 74,112 ---------- 791,162 ---------- Metals & Mining - 0.14% Earle M. Jorgensen 9.75% 6/1/12 40,000 41,800 +++Weirton Steel 10% 4/1/08 522,500 54,863 ---------- 96,663 ---------- Packaging & Containers - 0.46% *AEP Industries 9.875% 11/15/07 85,000 82,875 Consolidated Container 10.125% 7/15/09 85,000 52,275 +Graham Packaging 144A 8.75% 1/15/08 55,000 54,450 Portola Packaging 10.75% 10/1/05 25,000 25,625 +Radnor Holdings 144A 11.00% 3/15/10 90,000 91,350 ---------- 306,575 ---------- Paper & Forest Products - 0.34% Georgia-Pacific *9.875% 11/1/21 205,000 201,925 +144A 7.375% 7/15/08 25,000 24,875 ---------- 226,800 ---------- Real Estate - 0.27% Forest City Enterprises 7.625% 6/1/15 105,000 108,413 Tanger Properties 9.125% 2/15/08 70,000 72,625 ---------- 181,038 ---------- Restaurants - 0.03% Avado Brands 9.75% 6/1/06 45,000 20,925 ---------- 20,925 ---------- Retail - 0.53% *J Crew Operating 10.375% 10/15/07 100,000 94,500 *Office Depot 10.00% 7/15/08 100,000 117,500 *Petco Animal Supplies 10.75% 11/1/11 45,000 50,738 +Remington Arms 144A 10.50% 2/1/11 60,000 60,450 *Saks 7.25% 12/1/04 30,000 31,275 ---------- 354,463 ---------- 4 Statement Delaware Investments Global Dividend OF NET ASSETS (CONTINUED) and Income Fund, Inc. Principal Market Amount** Value (U.S.$) - -------------------------------------------------------------------------------- Non-Convertible Bonds (continued) - -------------------------------------------------------------------------------- Telecommunications - 1.34% []+American Tower Escrow 144A 10.886% 8/1/08 USD 35,000 $ 22,050 Crown Castle International #10.625% 11/15/07 50,000 53,125 *10.75% 8/1/11 85,000 89,675 Insight Midwest 9.75% 10/1/09 25,000 26,250 10.50% 11/1/10 45,000 48,825 *Nextel Communications 9.375% 11/15/09 60,000 64,650 Nextel Partners *12.50% 11/15/09 30,000 33,750 #14.00% 2/1/09 70,000 71,225 Nortel Networks Capital 7.40% 6/15/06 60,000 59,100 Qwest 7.20% 11/1/04 35,000 35,919 +Qwest Services 144A 13.50% 1/1/08 135,000 154,237 Star Choice Communications 13.00% 12/15/05 45,000 47,700 Time Warner Telecommunications 9.75% 7/15/08 215,000 190,274 ---------- 896,780 ---------- Textiles, Apparel & Furniture - 0.14% +Oxford Industry 144A 8.875% 6/1/11 95,000 95,950 ---------- 95,950 ---------- Transportation & Shipping - 0.47% Hornbeck Offshore Services 10.625% 8/1/08 50,000 54,500 Kansas City Southern Railway 9.50% 10/1/08 85,000 91,375 +Overseas Shipholding Group 144A 8.25% 3/15/13 95,000 97,850 Stena AB 9.625% 12/1/12 65,000 70,931 ---------- 314,656 ---------- Utilities - 1.13% Avista 9.75% 6/1/08 100,000 111,000 Calpine 10.50% 5/15/06 85,000 70,125 Homer City Fund 8.137% 10/1/19 40,000 41,500 +Illinois Power 144A 11.50% 12/15/10 20,000 22,050 Midland Funding II 11.75% 7/23/05 100,000 108,250 Midwest Generation 8.30% 7/2/09 70,000 68,725 Mirant Americas Generation *7.625% 5/1/06 35,000 25,988 8.30% 5/1/11 40,000 25,200 +Nevada Power 144A 10.875% 10/15/09 35,000 38,763 Orion Power Holdings 12.00% 5/1/10 65,000 70,525 +PSEG Energy Holdings 144A 7.75% 4/16/07 50,000 53,178 +Williams Gas Pipelines Central 144A 7.375% 11/15/06 120,000 126,600 ---------- 761,904 ---------- Total Non-Convertible Bonds (cost $9,756,014) 9,857,404 ---------- Principal Market Amount** Value (U.S.$) - -------------------------------------------------------------------------------- Foreign Bonds - 41.01% - -------------------------------------------------------------------------------- Australia - 3.39% *Normandy Yandal Operations 8.875% 4/1/08 USD 95,000 $ 54,150 Queensland Treasury 6.00% 7/14/09 AUD 2,800,000 1,937,186 Telstra 6.375% 6/29/11 EUR 210,000 284,954 ---------- 2,276,290 ---------- Austria - 0.83% Republic of Austria 4.00% 7/15/09 450,000 555,202 ---------- 555,202 ---------- Belgium - 2.41% Belgium Government 5.75% 9/28/10 1,200,000 1,615,324 ---------- 1,615,324 ---------- British Virgin Islands - 0.10% *ChipPAC International 12.75% 8/1/09 USD 60,000 67,650 ---------- 67,650 ---------- Canada - 1.08% Ainsworth Lumber 12.50% 7/15/07 75,000 83,625 13.875% 7/15/07 20,000 22,500 CP Ships 10.375% 7/15/12 55,000 61,600 *Fairfax Financial Holdings 7.75% 12/15/03 115,000 115,000 Rogers Cablesystems 10.00% 3/15/05 175,000 188,125 *Tembec Industries 8.50% 2/1/11 155,000 154,225 Western Oil Sands 8.375% 5/1/12 95,000 103,075 ---------- 728,150 ---------- Dominican Republic - 0.11% +Dominican Republic 144A 9.04% 4/1/13 75,000 71,438 ---------- 71,438 ---------- France - 2.46% France Government Bond O.A.T. 5.50% 4/25/10 EUR 1,000,000 1,332,578 4.00% 10/25/09 260,000 319,652 ---------- 1,652,230 ---------- Germany - 4.36% Deutschland Republic 5.00% 7/4/11 1,300,000 1,683,737 6.25% 1/4/24 850,000 1,244,861 ---------- 2,928,598 ---------- Greece - 0.44% Hellenic Republic 8.60% 3/26/08 200,000 293,963 ---------- 293,963 ---------- Ireland - 0.16% MDP Acquisitions 9.625% 10/1/12 USD 20,000 21,625 +144A 9.625% 10/1/12 80,000 86,500 ---------- 108,125 ---------- 5 Statement Delaware Investments Global Dividend OF NET ASSETS (CONTINUED) and Income Fund, Inc. Principal Market Amount** Value (U.S.$) - -------------------------------------------------------------------------------- Foreign Bonds (continued) - -------------------------------------------------------------------------------- Mexico - 4.58% United Mexican States Global 7.375% 3/13/08 EUR 1,000,000 $ 1,334,701 8.25% 2/24/09 DEM 2,500,000 1,740,442 ----------- 3,075,143 ----------- Netherlands - 0.40% RWE Finance 6.125% 10/26/12 EUR 200,000 266,353 ----------- 266,353 ----------- New Zealand - 5.72% New Zealand Government 6.00% 11/15/11 NZD 3,000,000 1,811,994 7.00% 7/15/09 2,000,000 1,260,889 8.00% 4/15/04 1,300,000 770,159 ----------- 3,843,042 ----------- Norway - 2.52% Kingdom of Norway 6.00% 5/16/11 NOK 3,300,000 538,199 6.50% 5/15/13 3,200,000 544,768 6.75% 1/15/07 3,300,000 535,733 Ocean Rig Norway 10.25% 6/1/08 USD 85,000 70,975 ----------- 1,689,675 ----------- Peru - 0.21% Republic of Peru 4.00% 3/7/17 170,000 141,586 ----------- 141,586 ----------- Poland - 3.93% Poland Government 5.00% 10/24/13 PLZ 6,500,000 1,747,614 8.50% 2/12/05 1,200,000 342,572 12.00% 10/12/03 2,000,000 551,641 ----------- 2,641,827 ----------- South Africa - 2.19% Republic of South Africa Series 153 13.00% 8/31/10 ZAR 10,000,000 1,469,849 ----------- 1,469,849 ----------- Sweden - 6.00% Sweden Government 5.00% 1/28/09 SEK 18,000,000 2,465,270 5.50% 10/8/12 5,000,000 707,316 6.75% 5/5/14 5,500,000 855,618 ----------- 4,028,204 ----------- United Kingdom - 0.12% British Telecom 6.875% 2/15/11 EUR 60,000 81,772 ----------- 81,772 ----------- Total Foreign Bonds (cost $22,594,118) 27,534,421 ----------- Number of Market Shares Value (U.S.$) - -------------------------------------------------------------------------------- Warrants - 0.04% - -------------------------------------------------------------------------------- +++American Tower 144A 35 $ 3,955 ++Solutia 130 1 ++XM Satellite Radio 30 21,075 ----------- Total Warrants (cost $20,044) 25,031 ----------- Principal Amount** - -------------------------------------------------------------------------------- Short-Term Securities - 1.85% - -------------------------------------------------------------------------------- ***U.S. Treasury Bills 1.055% 6/26/03 USD 1,245,000 1,244,085 ----------- Total Short-Term Securities (cost $1,244,085) 1,244,085 ----------- Total Market Value of Securities - 130.76% (cost $81,102,919) 87,786,589 Short-Term Investments Held as Collateral for Loaned Securities - 11.40% (cost $7,651,588) (a) 7,651,588 Obligation to Return Securities Lending Collateral - (11.40%) (a) (7,651,588) Borrowings Under Line of Credit - (31.28%) (21,000,000) Receivables and Other Assets Net of Liabilities - 0.52% 349,925 ----------- Net Assets Applicable to 5,985,582 Shares ($0.01 par value) Outstanding; Equivalent to $11.22 per share - 100.00% $67,136,514 =========== 6 Statement Delaware Investments Global Dividend OF NET ASSETS (CONTINUED) and Income Fund, Inc. - -------------------------------------------------------------------------------- Components of Net Assets at May 31, 2003: Common stock, $0.01 par value, 500,000,000 shares authorized to the Fund $76,172,983 Treasury stock, 665,065 shares at cost (8,599,291) Distributions in excess of net investment income(b) (1,453,769) Accumulated net realized loss on investments and foreign currencies (5,641,644) Net unrealized appreciation of investments and foreign currencies 6,658,235 ----------- Total net assets $67,136,514 =========== +Security exempt from registration under Rule 144A of the Securities Act of 1933. See Note 9 in "Notes to Financial Statements". ++Non-income producing security for the period ended May 31, 2003. Non-income producing security. Security is currently in default. *Fully or partially on loan. **Principal amount is stated in the currency in which each bond is denominated. ***U.S. Treasury bills are traded on a discount basis; the interest rate shown is the effective yield at the time of purchase by the Fund. #Step coupon bond. []Zero coupon bond. The interest rate shown is the yield at the time of purchase. (a)See Note 8 in "Notes to Financial Statements". (b)Undistributed net investment income includes net realized gains (losses) on foreign currencies. Net realized gains (losses) on foreign currencies are treated as net investment income in accordance with provisions of the Internal Revenue Code. Summary of Abbreviations TIDES - Term Income Deferred Equity Securities AUD - Australian Dollar DEM - German Mark EUR - European Monetary Unit NOK - Norwegian Kroner NZD - New Zealand Dollar PLZ - Polish Zloty SEK - Swedish Krona USD - U.S. Dollar ZAR - South African Rand See accompanying notes 7 Statement Delaware Investments Global Dividend and Income Fund, Inc. OF OPERATIONS Six Months Ended May 31, 2003 (Unaudited)
Investment Income: Interest $1,430,587 Dividends (net of foreign taxes withheld of $40,478) 937,885 Security lending income 6,466 $ 2,374,938 ---------- ----------- Expenses: Management fees 285,301 Professional fees 70,822 Accounting and administration expenses 50,000 Reports to shareholders 37,980 Custodian fees 28,120 Transfer agent fees 22,922 NYSE fees 18,248 Directors' fees 5,822 Other 31,718 ---------- Total operating expenses (before interest expense) 550,933 Interest expense 208,662 ----------- Total operating expenses (after interest expense) 759,595 Less expenses paid indirectly (725) ----------- Total expenses 758,870 ----------- Net Investment Income 1,616,068 ----------- Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currencies: Net realized gain (loss) on: Investments (593,529) Foreign currencies 271,580 ----------- Net realized loss (321,949) Net change in unrealized appreciation/depreciation of investments and foreign currencies 9,686,899 ----------- Net Realized and Unrealized Gain on Investments and Foreign Currencies 9,364,950 ----------- Net Increase in Net Assets Resulting from Operations $10,981,018 ===========
See accompanying notes 8
Statements Delaware Investments Global Dividend and Income Fund, Inc. OF CHANGES IN NET ASSETS Six Months Year Ended Ended 5/31/03 11/30/02 (Unaudited) Increase (Decrease) in Net Assets from Operations: Net investment income $ 1,616,068 $ 2,981,703 Net realized loss on investments and foreign currencies (321,949) (4,643,149) Net change in unrealized appreciation/depreciation of investments and foreign currencies 9,686,899 3,106,527 ----------- ----------- Net increase in net assets resulting from operations 10,981,018 1,445,081 ----------- ----------- Dividends and Distributions to Shareholders from: Net investment income (3,367,162) (2,182,468) Return of capital -- (6,609,672) ----------- ----------- (3,367,162) (8,792,140) ----------- ----------- Net Increase (Decrease) in Net Assets 7,613,856 (7,347,059) Net Assets: Beginning of period 59,522,658 66,869,717 ----------- ----------- End of period $67,136,514 $59,522,658 =========== ===========
See accompanying notes Statement Delaware Investments Global Dividend and Income Fund, Inc. OF CASH FLOWS Six Months Ended May 31, 2003 (Unaudited)
Net Cash (Including Foreign Currency) Provided by Operating Activities: Net increase in net assets resulting from operations $10,981,018 ----------- Adjustments to reconcile net increase in net assets from operations to cash provided by operating activities: Amortization of premium and discount on securities 188,188 Net proceeds from investment transactions 906,188 Net realized loss on investments 593,529 Net realized gain on foreign currencies (271,580) Net change in unrealized appreciation/depreciation of investments and foreign currencies (9,686,899) Increase in receivable for investments sold (1,341,023) Increase in interest and dividends receivable (22,063) Increase in other assets (209) Increase in payable for investments purchased 1,866,167 Decrease in interest payable (13,990) Increase in accrued expenses and other liabilities 18,842 ----------- Total adjustments (7,762,850) ----------- Net cash provided by operating activities 3,218,168 ----------- Cash flows used for financing activities: Cash dividends and distributions paid (3,367,162) ----------- Net cash used for financing activities (3,367,162) ----------- Effect of exchange rates on cash 22,887 ----------- Net decrease in cash (126,107) Cash at beginning of period 88,253 ----------- Cash at end of period $ (37,854) =========== Cash paid for interest $ 378,626 ===========
See accompanying notes 9 Financial HIGHLIGHTS Selected data for each share of the Fund outstanding throughout each period were as follows:
Delaware Investments Global Dividend and Income Fund, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ Six Months Ended Year Ended 5/31/03(5) 11/30/02(3) 11/30/01 11/30/00 11/30/99 11/30/98 (Unaudited) Net asset value, beginning of period $ 9.940 $11.170 $11.770 $13.920 $15.700 $17.090 Income (loss) from investment operations: Net investment income4 0.270 0.499 0.620 0.700 0.930 1.090 Net realized and unrealized gain (loss) on investments and foreign currencies 1.573 (0.260) 0.280 (1.350) (1.070) (0.700) ------- ------- ------- ------- ------- ------- Total from investment operations 1.843 0.239 0.900 (0.650) (0.140) 0.390 ------- ------- ------- ------- ------- ------- Less dividends and distributions from: Net investment income (0.563) (0.365) (0.195) (0.530) (0.860) (1.380) Net realized gains on investment transactions -- -- (0.084) (0.470) (0.780) (0.400) Return of capital -- (1.104) (1.221) (0.500) -- -- ------- ------- ------- ------- ------- ------- Total dividends and distributions (0.563) (1.469) (1.500) (1.500) (1.640) (1.780) ------- ------- ------- ------- ------- ------- Net asset value, end of period $11.220 $ 9.940 $11.170 $11.770 $13.920 $15.700 ======= ======= ======= ======= ======= ======= Market value, end of period $11.950 $10.400 $12.400 $10.380 $11.750 $15.880 ======= ======= ======= ======= ======= ======= Total return based on:(1) Market value 21.04% (5.49%) 34.52% 0.29% (17.00%) 2.05% Net asset value 18.90% 0.28% 6.91% (4.04%) (0.57%) 2.19% Ratios and supplemental data: Net assets, end of period (000 omitted) $67,137 $59,523 $66,870 $70,420 $92,601 $104,446 Ratio of total operating expenses to average net assets 2.51% 2.26% 3.31% 3.45% 2.69% 2.69% Ratio of total operating expenses to adjusted average net assets (before interest expense)(2) 1.35% 1.06% 1.10% 1.04% 1.00% 1.03% Ratio of interest expense to adjusted average net assets(2) 0.51% 0.64% 1.35% 1.62% 1.15% 1.16% Ratio of net investment income to average net assets 5.35% 4.69% 5.18% 5.34% 6.14% 6.63% Ratio of net investment income to adjusted average net assets(2) 3.97% 3.53% 3.84% 4.11% 4.92% 5.38% Portfolio turnover 120% 69% 47% 43% 58% 51% Leverage analysis: Debt outstanding at end of period (000 omitted) $21,000 $21,000 $25,000 $25,000 $25,000 $25,000 Average daily balance of debt outstanding (000 omitted) $21,000 $21,603 $25,000 $25,000 $25,000 $25,000 Average daily balance of shares outstanding (000 omitted) 5,986 5,986 5,986 6,389 6,651 6,651 Average debt per share $3.51 $3.61 $4.18 $3.91 $3.76 $3.76
(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 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. (2) Adjusted average net assets excludes debt outstanding. (3) As required, effective December 1, 2001, the Fund has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies that require amortization of all premium and discounts on debt securities. The effect of this change for the year ended November 30, 2002 was a decrease in net investment income per share of $0.024, an increase in net realized and unrealized gain (loss) per share of $0.024, a decrease in the ratio of net investment income to average net assets of 0.23%, and a decrease in the ratio of net investment income to adjusted average net assets of 0.17%. Per share data and ratios for periods prior to December 1, 2001 have not been restated to reflect this change in accounting. (4) The average shares outstanding method has been applied for per share information. (5) Ratios and portfolio turnover have been annualized and total return has not been annualized. See accompanying notes 10 Notes Delaware Investments Global Dividend and Income TO FINANCIAL STATEMENTS Fund, Inc. May 31, 2003 (Unaudited) Delaware Investments Global Dividend and Income Fund, Inc. (the "Fund") is organized as a Maryland corporation and is a diversified closed-end management investment company under the Investment Company Act of 1940, as amended. The Fund's shares trade on the New York Stock Exchange under the symbol DGF. The investment objective of the Fund is to seek high current income. Capital appreciation is a secondary objective. 1. Significant Accounting Policies The following accounting policies are in accordance with accounting principles generally accepted in the United States and are consistently followed by the Fund. Security Valuation - All domestic equity securities are valued at the last quoted sales price as of time of the regular close of the New York Stock Exchange (NYSE) on the valuation date. If on a particular day an equity security does not trade, then the mean between the bid and asked prices will be used. Securities listed on a foreign exchange are normally valued at the last quoted sales price before the Fund is valued. If on a particular day a security does not trade, then the mean between the bid and the asked prices will normally be used. U.S. government and agency securities are valued at the mean between the bid and asked prices. Long-term debt securities are valued by an independent pricing service and such prices are believed to reflect the fair value of such securities. Short-term debt securities having less than 60 days to maturity are valued at amortized cost, which approximates market value. Other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of the Fund's Board of Directors. In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures, or with respect to foreign securities, aftermarket trading or significant events after local market trading (e.g., government actions or pronouncements, trading volume or volatility on markets, exchanges among dealers, or news events). Federal Income Taxes - The Fund intends to continue to qualify for federal income tax purposes as a regulated investment company and make the requisite distributions to shareholders. Accordingly, no provision for federal income taxes has been made in the financial statements. Distributions - The Fund has a managed distribution policy. Under the policy, the Fund declares and pays monthly distributions and is managed with a goal of generating as much of the distribution as possible from ordinary income (net investment income and short-term capital gains). The balance of the distribution then comes from long-term capital gains and, if necessary, a return of capital. The current annualized rate is $1.125 per share. The Fund continues to evaluate its monthly distribution in light of ongoing economic and market conditions and may change the amount of the monthly distributions in the future. Foreign Currency Transactions - Transactions denominated in foreign currencies are recorded at the prevailing exchange rates on the valuation date. The values of all assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of such currencies against the U.S. dollar daily. Transaction gains or losses resulting from changes in exchange rates during the reporting period or upon settlement of the foreign currency transaction are reported in operations for the current period. The Fund isolates that portion of realized gains and losses on investments in debt securities, which are due to changes in foreign exchange rates from that which are due to changes in market prices of debt securities. For foreign equity securities, these changes are included in realized gains (losses) on investments. The Fund reports certain foreign currency related transactions as components of realized gains (losses) for financial reporting purposes, where such components are treated as ordinary income (loss) for federal income tax purposes. Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Other - Expenses common to all funds within the Delaware Investments Family of Funds are allocated amongst the funds on the basis of average net assets. Security transactions are recorded on the date the securities are purchased or sold (trade date). Costs used in calculating realized gains and losses on the sale of investment securities are those of the specific securities sold. Dividend income is recorded on the ex-dividend date and interest income is recorded on the accrual basis. Discounts and premiums are amortized to interest income over the lives of the respective securities. 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 recorded in accordance with the Fund's understanding of the applicable country's tax rules and rates. Distributions received from Real Estate Investment Trusts are recorded as dividend income on ex-dividend date, subject to reclassification upon notice of the character of such distributions by the issuer. Certain expenses of the Fund are paid through commission arrangements with brokers. These transactions are done subject to best execution. The amount of these expenses was approximately $725 for the six months ended May 31, 2003. In addition, the Fund may receive earnings credits from its custodian when positive cash balances are maintained, which are used to offset custody fees. There were no earnings credits for the six months ended May 31, 2003. The expenses paid under the above arrangements are included in their respective expense captions on the Statement of Operations with the corresponding expense offset shown as "expenses paid indirectly". 2. Investment Management, Administration Agreements and Other Transactions with Affiliates In accordance with the terms of its investment management agreement, the Fund pays Delaware Management Company (DMC), a series of Delaware Management Business Trust and the investment manager, an annual fee of 0.70%, which is calculated daily based on the adjusted average weekly net assets. DMC has entered into a sub-advisory agreement with Delaware International Advisers Ltd. (DIAL), an affiliate of DMC, related to the foreign securities portion of the Fund. For the services provided, DMC pays DIAL a monthly fee which is equal to 40% of the fee paid to DMC under the terms of the Investment Management Agreement. The Fund does not pay any fees directly to DIAL. The Fund has engaged Delaware Service Company, Inc. (DSC), an affiliate of DMC and DIAL, to provide accounting and administration services. The Fund pays DSC a monthly fee computed at the annual rate of 0.05% of the Fund's adjusted average weekly net assets, subject to an annual minimum of $100,000. 11 Notes Delaware Investments Global Dividend and TO FINANCIAL STATEMENTS (CONTINUED) Income Fund, Inc. 2. Investment Management, Administration Agreements and Other Transactions with Affiliates (continued) For purposes of the calculation of investment management fees and administration fees, adjusted average weekly net assets does not include the line of credit liability. At May 31, 2003, the Fund had liabilities payable to affiliates as follows: Investment Accounting, Other expenses management fee administration and other payable to DMC payable to DMC expenses payable to DSC and affiliates -------------- ------------------------ -------------- $10,633 $14,377 $2,599 Certain officers of DMC, DIAL and DSC are officers and/or directors of the Fund. These officers and directors are paid no compensation by the Fund. 3. Investments For the six months ended May 31, 2003, the Fund made purchases of $47,193,093 and sales of $48,331,621 of investment securities other than U.S. government securities and short-term investments. At May 31, 2003, the cost of investments for federal income tax purposes has been estimated since the final tax characteristics cannot be determined until fiscal year end. At May 31, 2003, the cost of investments was $81,028,730. At May 31, 2003, the net unrealized appreciation was $6,757,859 of which $12,777,424 related to unrealized appreciation of investments and $6,019,565 related to unrealized depreciation of investments. 4. Dividend and Distribution Information Income and long-term capital gain distributions are determined in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States. The tax character of dividends and distributions paid during the six months ended May 31, 2003 and year ended November 30, 2002 was as follows: Six Months Year Ended Ended 5/31/03* 11/30/02 ---------- -------- Ordinary income $3,367,162 $2,182,468 Return of capital -- 6,609,672 ---------- ---------- Total $3,367,162 $8,792,140 ========== ========== *Tax information for the six months ended May 31, 2003 is an estimate and a portion of the ordinary income will be redesignated as return of capital at fiscal year end. The components of net assets are estimated since final tax characteristics cannot be determined until fiscal year end. As of May 31, 2003, the estimated components of net assets on a tax basis were as follows: Shares of beneficial interest $67,573,692 Distributions in excess of ordinary income (1,453,769) Net realized capital losses on investments (550,012) Capital loss carryforwards (5,080,199) Unrealized appreciation/depreciation on investments 6,646,802 ----------- Net assets $67,136,514 =========== For federal income tax purposes, capital loss carryforwards may be carried forward and applied against future capital gains. Such capital loss carryforwards expire as follows: $1,093,240 expires in 2009 and $3,986,959 expires in 2010. 5. Capital Stock The Fund did not repurchase any shares under the Share Repurchase Program or have any transactions in common shares during the six months ended May 31, 2003. Shares issuable under the Fund's dividend reinvestment plan are purchased by the Fund's transfer agent, Mellon Investor Services, LLC, in the open market. 6. Line of Credit The Fund has entered into a Line of Credit Agreement with J.P. Morgan Chase for $21,000,000. At May 31, 2003, the par value of loans outstanding was $21,000,000 at a variable interest rate of 1.82%. During the period, the average daily balance of loans outstanding was $21,000,000 at a weighted average interest rate of approximately 1.98%. The maximum amount of loans outstanding at any time during the year was $21,000,000. The loan is collateralized by the Fund's portfolio. 7. Foreign Exchange Contracts The Fund may enter into forward foreign currency exchange contracts as a way of managing foreign exchange rate risk. The Fund may enter into these contracts to fix the U.S. dollar value of a security that it has agreed to buy or sell for the period between the date the trade was entered into and the date the security is delivered and paid for. The Fund may also use these contracts to hedge the U.S. dollar value of securities it already owns that are denominated in foreign currencies. Forward foreign currency exchange contracts are valued at the mean between the bid and asked prices of the contracts and are marked-to-market daily. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available. The change in market value is recorded as an unrealized gain or loss. When the contract is closed, a realized gain or loss is recorded equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The use of forward foreign currency exchange contracts does not eliminate fluctuations in the underlying prices of the securities, but does establish a rate of exchange that can be achieved in the future. Although forward foreign currency exchange contracts limit the risk of loss due to a decline in the value of the hedged currency, they also limit any potential gain that might result should the value of the currency increase. In addition, the Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts. The following foreign currency exchange contracts were outstanding at May 31, 2003: Settlement Unrealized Contracts to Deliver In Exchange for Date Depreciation - -------------------- --------------- ---------- ------------ 2,230,764 $1,620,370 6/2/2003 ($3,916) Canadian Dollars Settlement Unrealized Contracts to Deliver In Exchange for Date Depreciation - -------------------- --------------- ---------- ------------ 10,855,180 $1,624,419 6/3/2003 ($2,804) Norwegian Kroner 12 Notes Delaware Investments Global Dividend and TO FINANCIAL STATEMENTS (CONTINUED) Income Fund, Inc. 8. Securities Lending The Fund, along with other funds in the Delaware Investments Family of Funds, may lend its securities pursuant to a security lending agreement (Lending Agreement) with J.P. Morgan Chase. Initial security loans made pursuant to the Lending Agreement are required to be secured by U.S. Treasury obligations and/or cash collateral not less than 102% of the market value of the securities issued in the United States and 105% of the market value of securities issued outside the United States. With respect to each loan, if the aggregate market value of the collateral held on any business day is less than the aggregate market value of the securities which are the subject of such loan, the borrower will be notified to provide additional collateral not less than the applicable collateral requirements. Cash collateral received is invested in fixed-income securities, with a weighted average maturity not to exceed 90 days, rated in one of the top two tiers by Standard & Poor's Ratings Group or Moody's Investors Service, Inc. or repurchase agreements collateralized by such securities. However, in the event of default or bankruptcy by the lending agent, realization and/or retention of the collateral may be subject to legal proceedings. In the event the borrower fails to return loaned securities and the collateral received is insufficient to cover the value of the loaned securities and provided such collateral shortfall is not the result of investment losses, the lending agent has agreed to pay the amount of the shortfall to the Fund, or at the discretion of the lending agent, replace the loaned securities. At May 31, 2003, the market value of securities on loan was $7,633,340. The securities on loan were collateralized by the following: Description Market Value - ----------- ------------ Morgan Stanley Dean Witter Discover 1.41% 6/1/04 $ 86,721 Canadian Imperial Bank NY 1.4095% 10/9/03 43,350 Racers Series 2002-35-C 1.60855% 4/15/04 215,928 Goldman Sachs Group LP 1.515% 7/14/03 303,524 Wilmington Trust Company 1.26% 7/21/03 217,471 Fannie Mae 1.314945% 1/29/04 2,167,944 Barclays London 1.27% 6/17/03 347,347 Merrill Lynch Mortgage Capital 1.475% 6/6/03 216,803 UBS Warburg LLC 1.375% 6/2/03 4,052,500 ---------- $7,651,588 ========== 9. Credit and Market Risks Some countries in which the Fund may invest require governmental approval for the repatriation of investment income, capital or the proceeds of sales of securities by foreign investors. In addition, if there is deterioration in a country's balance of payments or for other reasons, a country may impose temporary restrictions on foreign capital remittances abroad. The securities exchanges of certain foreign markets are substantially smaller, less liquid and more volatile than the major securities markets in the United States. Consequently, acquisition and disposition of securities by the Fund may be inhibited. In addition, a significant portion of the aggregate market value of equity securities listed on the major securities exchanges in emerging markets are held by a smaller number of investors. This may limit the number of shares available for acquisition or disposition by the Fund. The Fund invests in high-yield fixed income securities, which carry ratings of BB or lower by Standard & Poor's Ratings Group and/or Ba or lower by Moody's Investors Service. Investments in these higher yielding securities are generally accompanied by a greater degree of credit risk than higher rated securities. Additionally, lower rated securities may be more susceptible to adverse economic and competitive industry conditions than investment grade securities. The Fund may invest up to 10% of its total assets in illiquid securities which may include securities with contractual restrictions on resale, securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and other securities which may not be readily marketable. The relative illiquidity of these securities may impair the Fund from disposing of them in a timely manner and at a fair price when it is necessary or desirable to do so. The Fund invests in real estate investment trusts (REITs) and is subject to some of the risks associated with that industry. If the Fund holds real estate directly as a result of defaults or receives rental income directly from real estate holdings, its tax status as a regulated investment company may be jeopardized. There were no direct holdings during the six months ended May 31, 2003. 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. 10. Industry Allocation As of May 31, 2003, the foreign bond holdings of the Fund, classified by type of business, were as follows: Percentage Industry of Net Assets - ------------------------------------------------------------------------- Banking, Finance & Insurance 0.17% - ------------------------------------------------------------------------- Building & Materials 0.31% - ------------------------------------------------------------------------- Cable, Media & Publishing 0.28% - ------------------------------------------------------------------------- Computers & Technology 0.10% - ------------------------------------------------------------------------- Energy 0.11% - ------------------------------------------------------------------------- Government 38.54% - ------------------------------------------------------------------------- Mining 0.08% - ------------------------------------------------------------------------- Paper & Forest Products 0.39% - ------------------------------------------------------------------------- Telecommunications 0.55% - ------------------------------------------------------------------------- Transportation 0.09% - ------------------------------------------------------------------------- Utilities 0.40% - ------------------------------------------------------------------------- Total 41.01% - ------------------------------------------------------------------------- Like any investment in securities, the value of the Fund may be subject to risk or loss from market, currency, economic and political factors which may occur in the countries where the Fund is invested. 13 Delaware Investments(SM) [LOGO] - -------------------------------------- A member of Lincoln Financial Group(R) This semiannual report is for the information of Delaware Investments Global Dividend and Income Fund, Inc. shareholders. The return and principal value of an investment in the Fund will fluctuate so that shares, when resold, may be worth more or less than their original cost. Notice is hereby given in accordance with Section 23(c) of the Investment Act of 1940 that the Fund may, from time to time, purchase shares of its Common Stock on the open market at market prices.
Board of Directors Affiliated Officers Contact Information Walter P. Babich Jude T. Driscoll Investment Manager Board Chairman Chairman Delaware Management Company Citadel Construction Corporation Delaware Investments Family of Funds Philadelphia, PA King of Prussia, PA Philadelphia, PA International Affiliate David K. Downes Michael P. Bishof Delaware International Advisers Ltd. President and Chief Executive Officer Senior Vice President and Treasurer London, England Delaware Investments Family of Funds Delaware Investments Family of Funds Philadelphia, PA Philadelphia, PA Principal Office of the Fund 2005 Market Street John H. Durham Richelle S. Maestro Philadelphia, PA 19103 Private Investor Senior Vice President, Gwynedd Valley, PA General Counsel and Secretary Independent Auditors Delaware Investments Family of Funds Ernst & Young LLP John A. Fry Philadelphia, PA 2001 Market Street President Philadelphia, PA 19103 Franklin & Marshall College Lancaster, PA Registrar and Stock Transfer Agent Mellon Investor Services, LLC Anthony D. Knerr Overpeck Centre Managing Director 85 Challenger Road Anthony Knerr & Associates Ridgefield, NJ 07660 New York, NY 800 851-9677 Ann R. Leven* For Securities Dealers and Financial Former Treasurer/Chief Fiscal Officer Institutions Representatives Only National Gallery of Art 800 362-7500 Washington, DC Web site Thomas F. Madison* www.delawareinvestments.com President and Chief Executive Officer MLM Partners, Inc. Minneapolis, MN Janet L. Yeomans* Vice President/Mergers & Acquisitions 3M Corporation St. Paul, MN
*Audit Committee Member - -------------------------------------------------------------------------------- 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. - -------------------------------------------------------------------------------- (7910) Printed in the USA SA-DGF [5/03] IVES 7/03 J9272 Item 2. Code of Ethics Not applicable. Item 3. Audit Committee Financial Expert Not applicable. Item 4. Principal Accountant Fees and Services Not applicable. Item 5. Audit Committee of Listed Registrants Not applicable. Item 6. [Reserved] Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies Not applicable. Item 8. [Reserved] Item 9. Controls and Procedures The registrant's principal executive officer and principal financial officer have evaluated the registrant's disclosure controls and procedures within 90 days of the filing of this report and have concluded that they are effective in ensuring that the information required to be disclosed by the registrant in its reports or statements filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission. There were no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their last evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Exhibits (a) Code of Ethics Not applicable. (b) (1) 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. (2) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto as Exhibit 99.906CERT. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf, by the undersigned, thereunto duly authorized. Delaware Investments Global Dividend and Income Fund, Inc.: Jude T. Driscoll - --------------------------- By: Jude T. Driscoll Title: Chairman Date: August 4, 2003 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Jude T. Driscoll - --------------------------- By: Jude T. Driscoll Title: Chairman Date: August 4, 2003 Michael P. Bishof - --------------------------- By: Michael P. Bishof Title: Treasurer Date: August 4, 2003 EX-99 3 ex99.txt EXHIBIT 99.CERT EXHIBIT 99.CERT CERTIFICATION ------------- I, Jude T. Driscoll, certify that: 1. I have reviewed this report on Form N-CSR of Delaware Investments Global Dividend and Income Fund, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: (a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and (c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: August 4, 2003 -------------------- Jude T. Driscoll - ------------------------- By: Jude T. Driscoll Title: Chairman CERTIFICATION ------------- I, Michael P. Bishof, certify that: 4. I have reviewed this report on Form N-CSR of Delaware Investments Global Dividend and Income Fund, Inc.; 5. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 6. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: (a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and (c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: August 4, 2003 -------------------- Michael P. Bishof - ------------------------- By: Michael P. Bishof Title: Treasurer EX-99 4 ex99-906.txt EXHIBIT 99.906CERT EXHIBIT 99.906CERT Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 In connection with the attached report of the registrant on Form N-CSR to be filed with the Securities and Exchange Commission (the "Report"), each of the undersigned officers of the registrant does hereby certify, to the best of such officer's knowledge, that: 1. The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly represents, in all material respects, the financial condition and results of operations of the registrant as of, and for, the periods presented in the Report. Date: August 4, 2003 -------------------------- Jude T. Driscoll - ------------------------------- By: Jude T. Driscoll Title: Chairman Michael P. Bishof - ------------------------------- By: Michael P. Bishof Title: Treasurer A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act, or other document authenticating, acknowledging, or otherwise adopting the signatures that appear in typed form within the electronic version of this written statement required by Section 906, has been provided to the registrant and will be retained by the registrant and furnished to the SEC or its staff upon request. -----END PRIVACY-ENHANCED MESSAGE-----