N-Q 1 d19179_nq.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number: 811-8246 Exact name of registrant as specified in charter: Delaware Investments Global Dividend and Income Fund, Inc. Address of principal executive offices: 2005 Market Street Philadelphia, PA 19103 Name and address of agent for service: David F. Connor, Esq. 2005 Market Street Philadelphia, PA 19103 Registrant's telephone number, including area code: (800) 523-1918 Date of fiscal year end: November 30 Date of reporting period: February 28, 2006
Item 1. Schedule of Investments. Schedule of Investments (Unaudited) Delaware Investments Global Dividend and Income Fund, Inc. February 28, 2006
Number of Market Shares Value (U.S.$) Common Stock - 77.25% Consumer Discretionary -12.18% @=+oAvado Brands Restricted 272 $ 3,816 Bayerische Motoren Werke 8,600 413,476 DSG International 64,900 195,667 Esprit Holdings 43,000 328,866 Gap 35,700 661,878 *+Great Wolf Resorts 19,000 196,270 Honda Motor 5,300 309,601 Kesa Electricals 114,400 532,688 +Jameson Inns 400,000 1,055,999 *Lagardere Groupe 5,900 456,139 Limited Brands 28,200 667,494 Mattel 43,300 729,605 *Michelin 6,500 396,547 *Nissan 35,400 406,418 Sony 5,500 257,542 Travis Perkins 15,900 413,946 *Volkswagen 6,900 483,259 WPP Group 48,900 568,212 +XM Satellite Radio Holdings Class A 400 8,836 ----- 8,086,259 --------- Consumer Staples - 4.92% B&G Foods 2,500 37,475 ConAgra Foods 31,000 651,929 Heinz (H.J.) 8,200 310,534 Kao 16,000 434,637 Kimberly-Clark 10,600 627,308 Metro 10,460 557,220 Safeway 26,600 646,646 ------- 3,265,749 --------- Energy - 3.10% Chevron 11,100 626,928 ConocoPhillips 10,800 658,368 *+Petroleum Geo-Services ADR 1,191 47,045 Total 2,890 726,892 ------- 2,059,233 Financials - 15.62% Allstate 11,600 635,448 Aon 17,500 693,175 AXA 12,700 449,088 Chubb 6,400 612,800 Dexia 18,100 449,572 Hartford Financial Services Group 7,300 601,374 HBOS 21,800 406,094 Huntington Bancshares 26,500 637,325 ING Groep 15,800 593,908 Kookmin Bank ADR 5,800 439,350 Mitsubishi UFJ Financial Group 33 490,005 Morgan Stanley 11,100 662,226 Nordea Bank AB 45,300 511,766 Royal & Sun Alliance Insurance Group 206,000 469,618 Royal Bank of Scotland Group 16,700 558,778 Standard Chartered 19,000 495,748 Wachovia 11,900 667,233 Washington Mutual 14,500 619,150 Westpac Banking 21,400 373,580 ------- 10,366,238 ---------- Health Care - 9.81% Abbott Laboratories 16,000 706,880 Baxter International 16,700 632,095 Bristol-Myers Squibb 27,400 632,940 Merck & Co 19,800 690,228 Novartis 7,800 419,774 Novo-Nordisk 7,200 423,260 *Ono Pharmaceutical 6,800 304,166 Pfizer 27,000 707,129
Number of Market Shares Value (U.S.$) Sanofi-Aventis 5,300 451,202 Stada Arzneimittel 11,900 425,615 *Terumo 14,300 436,611 Wyeth 13,700 682,260 ------- 6,512,160 --------- Healthcare REITs - 0.14% *oMedical Properties Trust 9,400 94,000 ------ 94,000 ------ Industrial REITs - 1.27% AMB Property 15,700 842,305 ------- 842,305 ------- Industrials - 4.80% *Asahi Glass 23,000 324,855 British Airways 71,700 412,524 Canadian Pacific Railway 10,300 527,299 Compagnie de Saint-Gobain 6,800 453,693 *+Foster Wheeler 1,769 84,926 Union Pacific 7,800 690,690 Waste Management 20,800 691,809 ------- 3,185,796 --------- Information Technology - 6.30% Canon 6,800 424,602 +CGI Group 76,600 574,744 Fujitsu 48,000 382,501 Hewlett-Packard 22,000 721,820 International Business Machines 7,700 617,848 Nokia OYJ 25,400 472,681 *+Tandberg ASA 44,900 346,162 +Xerox 43,000 640,700 ------- 4,181,058 --------- Lodging/Resort REITs - 0.40% *Strategic Hotel Capital 12,400 267,840 ------- 267,840 ------- Mall REITs - 0.50% Simon Property Group 4,000 331,880 ------- 331,880 ------- Manufactured Housing REITs - 0.23% Equity Lifestyle Properties 3,200 152,608 ------- 152,608 Materials - 3.17% Alcan Aluminium 6,400 279,228 Cemex 63,500 392,835 duPont (E.I.) deNemours 14,800 595,551 Lafarge SA 4,440 464,531 Rio Tinto 7,900 371,716 ------- 2,103,861 --------- Mortgage REITs - 6.26% *American Home Mortgage Investment 24,000 684,000 *Friedman Billings Ramsey Group Class A 22,240 221,510 *Gramercy Capital 37,900 995,254 JER Investors Trust 28,500 498,180 +oKKR Financial 24,600 562,602 *MortgageIT Holdings 52,100 606,965 +oPeoples Choice 47,300 260,150 *Saxon Capital 32,400 322,380 ------- 4,151,041 --------- Office/Industrial REITs - 1.18% *Duke Realty 22,300 782,730 ------- 782,730 ------- Office REITs - 1.88% *Brandywine Realty Trust 12,563 368,975 *Reckson Associates Realty 21,400 875,260 ------- 1,244,235 --------- Shopping Center REITs - 0.22% *Ramco-Gershenson Properties 5,000 145,300 ------- 145,300 ------- Telecommunications - 4.23% AT&T 25,700 709,063 Deutsche Telekom 13,000 205,443 *Telefonos de Mexico ADR 19,000 425,410 Telstra 141,300 401,944 Verizon Communications 20,900 704,330 Vodafone Group 186,490 358,062 ------- 2,804,252 --------- Utilities - 1.04% +Mirant 2,284 56,186 Progress Energy 14,300 634,634 -------
Number of Market Shares Value (U.S.$) 690,820 ------- Total Common Stock (cost $44,345,231) 51,267,365 ========== Convertible Preferred Stock - 3.83% Banking, Finance & Insurance - 1.35% Aspen Insurance 5.625% exercise price $29.28, expiration date 12/31/49 3,400 170,850 Chubb 7.00% exercise price $71.40, expiration date 8/16/06 4,100 139,318 oCitigroup Funding 5.18% exercise price $29.50, expiration date 9/27/08 7,000 223,930 *E Trade Group 6.125% exercise price $21.82, expiration date 11/18/08 3,500 116,813 *Lehman Brothers Holdings 6.25% exercise price $54.24, expiration date 10/15/07 9,250 246,281 ------- 897,192 ------- Basic Materials - 0.31% Huntsman 5.00% exercise price $28.29, expiration date 2/16/08 4,600 206,425 ------- 206,425 ------- Cable, Media & Publishing - 0.21% #Interpublic Group 144A 5.25% exercise price $13.66, expiration date 12/31/49 140 137,725 ------- 137,725 ------- Consumer Products - 0.26% Newell Financial Trust I 5.25% exercise price $50.69, expiration date 12/1/27 4,030 171,275 ------- 171,275 ------- Energy - 0.49% Chesapeake 4.50% exercise price $44.17, expiration date 12/31/49 2,200 200,475 El Paso Energy Capital Trust 4.75% exercise price $41.59, expiration date 3/31/28 3,250 121,875 ------- 322,350 ------- Environmental Services - 0.32% Allied Waste Industries 6.25% exercise price $10.13, expiration date 4/1/06 4,000 214,520 ------- 214,520 ------- Food, Beverage & Tobacco - 0.31% Constellation Brands 5.75% exercise price $17.08, expiration date 9/1/06 5,200 203,320 ------- 203,320 ------- Utilities - 0.58% Entergy 7.625% exercise price $87.64, expiration date 2/17/09 3,500 182,000 NRG Energy 5.75% exercise price $60.45, expiration date 3/16/09 875 204,094 ------- 386,094 ------- Total Convertible Preferred Stock (cost $2,455,886) 2,538,901 ========= Preferred Stock - 3.25% Leisure, Lodging & Entertainment - 0.62% Red Lion Hotels 9.50% 15,700 408,828 ------- 408,828 ------- Real Estate - 2.63% Equity Inns Series B 8.75% 10,000 264,500 LaSalle Hotel Properties 10.25% 23,500 615,699 *Ramco-Gershenson Properties 9.50% 11,500 303,083 SL Green Realty 7.625% 22,000 564,439 ------- 1,747,721 --------- Total Preferred Stock (cost $2,067,500) 2,156,549 ========= Warrant - 0.00% +#Solutia 144A, exercise price $7.59, expiration date 7/15/09 130 0 - Total Warrant (cost $11,059) 0 = Principal Amount|_| Agency Obligations - 0.23% Fannie Mae 6.375% 8/15/07 AUD 203,000 152,138 ------- Total Agency Obligations (cost $155,146) 152,138 ======= Commercial Mortgage-Backed Securities - 0.13% #First Union National Bank Commercial Mortgage Series 2001-C2 L 144A 6.46% 1/12/43 USD 85,000 83,960 ------ Total Commercial Mortgage-Backed Securities (cost $86,272) 83,960 ====== Convertible Bonds - 5.52% Aerospace & Defense - 0.46% #AAR 144A 1.75% 2/1/26 exercise price $29.43, expiration date 2/1/26 90,000 95,063 EDO 4.00% 11/15/25 exercise price $34.19, expiration date 11/15/25 90,000 96,863 #L-3 Communications 144A 3.00% 8/1/35 exercise price 102.31, expiration date 8/1/35 110,000 113,437 ------- 305,363 ------- Cable, Media & Publishing - 0.29% #Charter Communications 144A 5.875% 11/16/09 exercise price $2.42, expiration date11/16/09 40,000 28,850 #Playboy Enterprises 144A 3.00% 3/15/25 exercise price $17.02, expiration date 3/15/25 160,000 162,000 ------- 190,850 ------- Capital Goods - Manufacturing - 0.17% #Tyco International Group 144A 2.75% 1/15/18 exercise price $22.78, expiration date 1/15//18 100,000 113,750 ------- 113,750 -------
Number of Market Shares Value (U.S.$) Computers & Technology - 0.51% Hutchinson Technology 3.25% 1/15/26 exercise price $36.43, expiration date 1/15/26 120,000 118,050 #Intel 144A 2.95% 12/15/35 exercise price $31.53, expiration date 12/15/35 105,000 93,319 #Sybase 144A 1.75% 2/22/25 exercise price $25.22, expiration date 2/22/25 125,000 126,875 ------- 338,244 ------- Energy - 0.90% Halliburton 3.125% 7/15/23 exercise price $37.65, expiration date 7/15/23 100,000 186,375 Pride International 3.25% 5/1/33 exercise price $25.70, expiration date 5/1/33 150,000 198,750 Schlumberger 2.125% 6/1/23 exercise price $80.00, expiration date 6/1/23 140,000 213,499 ------- 598,624 ------- Healthcare & Pharmaceuticals - 0.83% CV Therapeutics 3.25% 8/16/13 exercise price $27.00, expiration date 8/16/13 45,000 54,731 Encysive Pharmaceuticals 2.50% 3/15/12 exercise price $13.95, expiration date 3/15/12 245,000 223,256 #Nektar Therapeutics 144A 3.25% 9/28/12 exercise price $21.52, expiration date 9/28/12 125,000 148,125 Teva Pharmaceutical Finance 0.25% 2/1/26 exercise price $47.16, expiration date 2/1/26 120,000 122,700 ------- 548,812 ------- Leisure, Lodging & Entertainment - 0.24% #Regal Entertainment Group 144A 3.75% 5/15/08 exercise price $14.97, expiration date 5/15/08 130,000 160,550 ------- 160,550 ------- Real Estate - 0.47% MeriStar Hospitality 9.50% 4/1/10 exercise price $10.18, expiration date 4/1/10 300,000 313,500 ------- 313,500 ------- Retail - 0.68% *<129>(TM)Dick's Sporting Goods 1.606% 2/18/24 exercise price $58.13, expiration date 2/18/24 140,000 105,700 oLowe's 0.861% 10/19/21 exercise price $50.03, expiration date 10/19/21 95,000 112,694 #Saks 144A 2.00% 3/15/24 exercise price $18.69, expiration date 3/15/24 125,000 137,031 #United Auto Group 144A 3.50% 4/1/26 exercise price $47.39, expiration date 4/1/26 90,000 98,325 ------ 453,750 ------- Technology - 0.41% #Mercury Interactive 144A 4.75% 7/1/07 exercise price $111.25, expiration date 7/1/07 275,000 269,156 ------- 269,156 ------- Telecommunications - 0.13% Qwest Communications International 3.50% 11/15/25 exercise price $5.90, expiration date 11/15/25 70,000 88,288 ------ 88,288 ------ Transportation - 0.07% #ExpressJet Holdings 144A 4.25% 8/1/23 exercise price $18.20, expiration date 8/1/23 50,000 43,688 ------ 43,688 ------ Utilities - 0.36% #CenterPoint Energy 144A 3.75% 5/15/23 exercise price $11.44, expiration date 5/15/23 200,000 235,500 235,500 ------- Total Convertible Bonds (cost $3,471,717) 3,660,075 ========= Corporate Bonds - 20.32% Banking - 0.21% Deustche Bank 8.00% 9/29/06 ISK 2,900,000 44,105 Western Financial Bank 9.625% 5/15/12 USD 85,000 95,838 ------ 139,943 ------- Basic Industry - 2.56% Abitibi-Consolidated 6.95% 12/15/06 5,000 5,069 *7.875% 8/1/09 25,000 24,563 *AK Steel 7.875% 2/15/09 85,000 83,088 BCP Caylux 9.625% 6/15/14 1,000 1,124 Bowater 9.50% 10/15/12 140,000 146,299 Donohue Forest Products 7.625% 5/15/07 65,000 65,975 Georgia-Pacific 8.875% 5/15/31 70,000 73,850 9.50% 12/1/11 75,000 82,313 Gold Kist 10.25% 3/15/14 60,000 66,600 Huntsman International 10.125% 7/1/09 25,000 25,750 #Ineos Group Holdings 144A 8.50% 2/15/16 125,000 123,125 Lyondell Chemical 10.50% 6/1/13 10,000 11,225 *#Nell AF Sarl 144A 8.375% 8/15/15 75,000 75,750 *NewPage 10.00% 5/1/12 90,000 94,500 Norske Skog 8.625% 6/15/11 100,000 99,500 #Port Townsend Paper 144A 12.00% 4/15/11 100,000 80,500 Potlatch 13.00% 12/1/09 95,000 112,296 *Rhodia 8.875% 6/1/11 82,000 85,485 10.25% 6/1/10 18,000 20,340 Smurfit Capital Funding 7.50% 11/20/25 150,000 138,749 *++Solutia 6.72% 10/15/37 155,000 115,475 Tembec Industries 8.625% 6/30/09 200,000 112,000 Witco 6.875% 2/1/26 60,000 58,200 ------ 1,701,776 ---------
Number of Market Shares Value (U.S.$) Brokerage - 0.55% E Trade Financial 8.00% 6/15/11 160,000 169,200 LaBranche & Company 9.50% 5/15/09 90,000 96,750 11.00% 5/15/12 90,000 100,575 ------- 366,525 ------- Capital Goods - 1.19% *Armor Holdings 8.25% 8/15/13 125,000 134,063 #Case New Holland 144A 7.125% 3/1/14 20,000 20,150 *Graham Packaging 9.875% 10/15/14 110,000 112,200 Interface 10.375% 2/1/10 100,000 109,750 Interline Brands 11.50% 5/15/11 120,000 133,800 Intertape Polymer 8.50% 8/1/14 115,000 113,850 <129>(TM)Mueller Holdings 14.75% 4/15/14 60,000 48,900 *#Panolam Industrial 144A 10.75% 10/1/13 45,000 43,425 Trimas 9.875% 6/15/12 80,000 70,800 ------ 786,938 ------- Consumer Cyclical - 1.41% *Accuride 8.50% 2/1/15 65,000 65,000 Brickman Group 11.75% 12/15/09 125,000 138,124 Carrols 9.00% 1/15/13 30,000 30,525 General Motors Acceptance Corporation 6.875% 9/15/11 100,000 89,637 *8.00% 11/1/31 55,000 50,357 Landry's Restaurant 7.50% 12/15/14 80,000 77,800 *Metaldyne 10.00% 11/1/13 120,000 110,400 *#Neiman Marcus 144A 9.00% 10/15/15 80,000 84,900 *O'Charleys 9.00% 11/1/13 50,000 51,625 *#Uno Restaurant 144A 10.00% 2/15/11 80,000 67,600 ++Venture Holdings 12.00% 6/1/09 95,000 179 *Visteon 7.00% 3/10/14 20,000 14,950 8.25% 8/1/10 60,000 48,000 Warnaco 8.875% 6/15/13 100,000 107,500 ------- 936,597 ------- Consumer Non-Cyclical - 1.57% Biovail 7.875% 4/1/10 35,000 36,225 *Constellation Brands 8.125% 1/15/12 165,000 173,662 *Cott Beverages 8.00% 12/15/11 110,000 113,575 #Doane Pet Care 144A 10.625% 11/15/15 50,000 53,125 #Le-Natures 144A 10.00% 6/15/13 105,000 110,775 National Beef Packing 10.50% 8/1/11 100,000 102,250 Pilgrim's Pride 9.625% 9/15/11 90,000 95,738 Playtex Products 9.375% 6/1/11 100,000 105,250 Swift & Co. 12.50% 1/1/10 30,000 29,850 True Temper Sports 8.375% 9/15/11 105,000 95,025 #Warner Chilcott 144A 9.00% 2/1/15 130,000 128,375 ------- 1,043,850 --------- Energy - 1.00% Bluewater Finance 10.25% 2/15/12 55,000 59,538 Compton Petroleum Finance 7.625% 12/1/13 40,000 41,100 #Copano Energy 144A 8.125% 3/1/16 25,000 26,125 El Paso Natural Gas 7.625% 8/1/10 45,000 47,578 El Paso Production Holding 7.75% 6/1/13 100,000 105,999 #Hilcorp Energy I 144A *7.75% 11/1/15 30,000 30,525 10.50% 9/1/10 22,000 24,530 Inergy Finance 6.875% 12/15/14 50,000 47,875 #Inergy Finance 144A 8.25% 3/1/16 20,000 20,500 oSecunda International 12.60% 9/1/12 55,000 59,125 Tennessee Gas Pipeline 8.375% 6/15/32 70,000 84,673 #VeraSun Energy 144A 9.875% 12/15/12 60,000 64,200 Whiting Petroleum 7.25% 5/1/13 50,000 50,875 ------ 662,643 ------- Finance & Investments - 0.60% FINOVA Group 7.50% 11/15/09 173,250 57,173 SLM 6.50% 6/15/10 NZD 520,000 341,525 ------- 398,698 ------- Media - 2.63% oAdelphia Communications 8.125% 7/15/06 USD 110,000 71,500 *#CCH I Notes 144A 11.00% 10/1/15 142,000 120,168 *Cenveo 9.625% 3/15/12 65,000 70,200 *Charter Communications Holdings 11.125% 1/15/11 105,000 56,700 <129>(TM)13.50% 1/15/11 155,000 93,775 #Charter Communications Operating 144A 8.375% 4/30/14 100,000 101,250 o#Cleveland Unlimited 144A 12.73% 12/15/10 40,000 41,200
Number of Market Shares Value (U.S.$) CSC Holdings 8.125% 8/15/09 25,000 25,906 *10.50% 5/15/16 125,000 133,125 Dex Media East 12.125% 11/15/12 55,000 63,731 Insight Midwest 10.50% 11/1/10 185,000 195,868 *Lodgenet Entertainment 9.50% 6/15/13 140,000 151,900 *Mediacom Capital 9.50% 1/15/13 135,000 135,675 *#RH Donnelley 144A 8.875% 1/15/16 55,000 57,681 *Sheridan Group 10.25% 8/15/11 40,000 41,650 Sirius Satellite Radio 9.625% 8/1/13 115,000 113,275 Vertis 10.875% 6/15/09 50,000 49,375 Warner Music Group 7.375% 4/15/14 120,000 120,900 *XM Satellite Radio 12.00% 6/15/10 91,000 102,148 ------- 1,746,027 --------- Real Estate - 0.47% American Real Estate Partners 8.125% 6/1/12 100,000 104,400 BF Saul REIT 7.50% 3/1/14 110,000 113,300 Tanger Properties 9.125% 2/15/08 90,000 95,491 ------ 313,191 ------- Services Cyclical - 2.68% Adesa 7.625% 6/15/12 105,000 107,100 *#CCM Merger 144A 8.00% 8/1/13 85,000 85,000 Corrections Corporation of America 7.50% 5/1/11 100,000 103,875 Foster Wheeler 10.359% 9/15/11 19,000 21,090 FTI Consulting 7.625% 6/15/13 90,000 94,725 *#Galaxy Entertainment Finance 144A 9.875% 12/15/12 100,000 104,000 Gaylord Entertainment 8.00% 11/15/13 65,000 68,331 <129>(TM)H-Lines Finance Holdings 11.00% 4/1/13 138,000 115,230 #Hertz 144A 8.875% 1/1/14 40,000 42,000 10.50% 1/1/16 15,000 16,238 Horizon Lines 9.00% 11/1/12 44,000 46,750 Kansas City Southern Railway 9.50% 10/1/08 175,000 189,874 #Knowledge Learning 144A 7.75% 2/1/15 65,000 62,400 Mandalay Resort Group 10.25% 8/1/07 25,000 26,656 OMI 7.625% 12/1/13 130,000 133,900 Penn National Gaming 8.875% 3/15/10 205,000 214,097 Royal Caribbean Cruises 7.25% 3/15/18 25,000 27,070 Seabulk International 9.50% 8/15/13 50,000 55,563 *Stena 9.625% 12/1/12 85,000 93,075 <129>(TM)Town Sports International 11.00% 2/1/14 65,000 47,125 Wheeling Island Gaming 10.125% 12/15/09 120,000 126,150 ------- 1,780,249 --------- Services Non-cyclical - 1.58% #Accellent 144A 10.50% 12/1/13 60,000 63,300 Aleris International 9.00% 11/15/14 110,000 116,600 Allied Waste North America 9.25% 9/1/12 130,000 141,700 Casella Waste Systems 9.75% 2/1/13 150,000 160,875 #CRC Health 144A 10.75% 2/1/16 75,000 77,813 Geo Subordinate 11.00% 5/15/12 95,000 93,100 *HealthSouth 8.375% 10/1/11 15,000 16,950 10.75% 10/1/08 130,000 134,875 US Oncology 10.75% 8/15/14 131,000 145,410 <129>(TM)Vanguard Health 11.25% 10/1/15 130,000 96,850 ------ 1,047,473 --------- Technology & Electronics - 0.34% *Magnachip Semiconductor 8.00% 12/15/14 115,000 111,550 *#Sunguard Data Systems 144A 10.25% 8/15/15 105,000 110,644 ------- 222,194 ------- Telecommunications - 2.10% American Cellular 10.00% 8/1/11 60,000 65,550 *American Tower 7.125% 10/15/12 80,000 84,200 *#Centennial Communications 144A 10.00% 1/1/13 45,000 47,025 Cincinnati Bell 8.375% 1/15/14 120,000 121,800 <129>(TM)Inmarsat Finance 10.375% 11/15/12 180,000 152,550 iPCS 11.50% 5/1/12 115,000 132,538 oIWO Holdings 8.35% 1/15/12 15,000 15,694 Qwest o7.741% 6/15/13 65,000 71,338 7.875% 9/1/11 35,000 37,625 Rural Cellular 9.875% 2/1/10 75,000 80,625 o#Rural Cellular 144A 10.43% 11/1/12 50,000 51,750 *#Telcordia Technologies 144A 10.00% 3/15/13 165,000 152,625 *Triton Communications 9.375% 2/1/11 315,000 221,287 oUS LEC 12.716% 10/1/09 45,000 49,106 #Wind Acquisition Finance 144A 10.75% 12/1/15 100,000 107,500 -------
Number of Market Shares Value (U.S.$) 1,391,213 --------- Utilities - 1.43% Avista 9.75% 6/1/08 50,000 54,222 ++#Calpine 144A 9.90% 7/15/07 68,425 64,063 #Dynegy Holdings 144A 10.125% 7/15/13 155,000 175,150 Elwood Energy 8.159% 7/5/26 104,031 112,311 Midwest Generation 8.30% 7/2/09 100,000 103,528 8.75% 5/1/34 90,000 98,775 Mirant Americas Generation 8.30% 5/1/11 125,000 131,406 NRG Energy 7.25% 2/1/14 125,000 128,438 Orion Power Holdings 12.00% 5/1/10 70,000 80,500 =++#USGen New England 144A 7.459% 1/2/15 50,000 360 --- 948,753 ------- Total Corporate Bonds (cost $13,672,363) 13,486,070 ========== Foreign Agencies - 2.23% Austria - 0.86% Oesterreichesche Kontrollbank 1.80% 3/22/10 JPY 64,000,000 571,267 ------- 571,267 ------- Germany - 1.37% KFW 6.50% 11/15/11 NZD 114,000 75,546 KFW International Finance 1.75% 3/23/10 JPY 50,000,000 445,446 Rentenbank 1.375% 4/25/13 JPY 45,000,000 386,869 ------- 907,861 ------- Total Foreign Agencies (cost $1,572,363) 1,479,128 ========= Regional Agency - 0.53% Australia - 0.53% Queensland Treasury 6.00% 8/14/13 AUD 147,000 112,951 6.00% 10/14/15 AUD 306,000 236,774 ------- Total Regional Agency (cost $354,440) 349,725 ======= Regional Authority - 1.63% Canada - 1.63% Ontario Province 1.875% 1/25/10 JPY 69,000,000 617,722 4.50% 3/8/15 CAD 183,000 162,148 Quebec Province 6.75% 11/9/15 NZD 225,000 150,193 Saskatchewan Province 5.00% 3/5/37 CAD 166,000 155,017 ------- Total Regional Authority (cost $1,111,961) 1,085,080 ========= Sovereign Agencies - 0.75% Canada - 0.48% Canada Housing Trust No. 1 3.75% 3/15/10 CAD 370,000 320,709 ------- 320,709 ------- Japan - 0.27% Development Bank of Japan 1.70% 9/20/22 JPY 21,000,000 176,334 ------- 176,334 ------- Total Sovereign Agencies (cost $496,993) 497,043 ======= Sovereign Debt - 14.04% Austria - 1.70% Republic of Austria 5.25% 1/4/11 EUR 351,000 454,848 9.00% 9/15/06 ISK 44,300,000 676,466 ------- 1,131,314 --------- France - 1.76% France Government O.A.T. 3.50% 4/25/15 EUR 250,000 298,198 French Treasury Note 2.75% 3/12/08 EUR 735,000 871,543 ------- 1,169,741 --------- Germany - 4.01% Deutschland Republic 3.50% 1/4/16 EUR 245,000 292,744 4.00% 1/4/37 EUR 226,000 283,878 4.75% 7/4/08 EUR 724,000 895,316 6.25% 1/4/24 EUR 378,000 601,415 6.50% 7/4/27 EUR 349,000 584,657 ------- 2,658,010 --------- Netherlands - 1.32% Netherlands Government 5.75% 2/15/07 EUR 713,000 872,894 ------- 872,894 ------- Norway - 1.37% Norwegian Government 5.00% 5/15/15 NOK 2,811,000 459,167 6.00% 5/16/11 NOK 2,698,000 447,799 -------
Number of Market Shares Value (U.S.$) 906,966 ------- Poland - 0.46% Poland Government 6.00% 11/24/10 PLN 905,000 304,392 ------- 304,392 ------- Portugal - 0.21% Portuguese Government 3.20% 4/15/11 EUR 120,000 141,932 ------- 141,932 ------- Sweden - 1.34% Sweden Government 3.50% 12/1/15 SEK 920,000 149,067 5.00% 12/1/20 SEK 2,035,000 303,951 5.25% 3/15/11 SEK 3,160,000 437,966 ------- 890,984 ------- United Kingdom - 1.87% U.K. Treasury 4.75% 6/7/10 GBP 168,000 299,780 4.75% 9/7/15 GBP 160,500 293,756 9.00% 7/12/11 GBP 301,000 646,362 ------- 1,239,898 --------- Total Sovereign Debt (cost $9,634,362) 9,316,131 ========= Supranational Banks - 2.43% Asia Development Bank 0.50% 10/9/12 AUD 255,000 136,565 European Investment Bank 1.40% 6/20/17 JPY 36,700,000 307,984 4.00% 10/15/37 EUR 362,000 440,446 4.375% 7/8/15 GBP 168,000 293,129 *Inter-American Development Bank 1.90% 7/8/09 JPY 49,000,000 438,274 ------- Total Supranational Banks (cost $1,665,493) 1,616,398 ========= Repurchase Agreements - 2.34% With BNP Paribas 4.50% 3/1/06 (dated 2/28/06, to be repurchased at $930,416, collateralized by $970,700 U.S. Treasury Bills due 8/24/06, market value $949,169) USD 930,300 930,300 With Cantor Fitzgerald 4.50% 3/1/06 (dated 2/28/06, to be repurchased at $207,926 collateralized by $212,900 U.S. Treasury Notes 4.50% due 2/15/09, market value $212,116) 207,900 207,900 With UBS Warburg 4.50% 3/1/06 (dated 2/28/06, to be repurchased at $415,852, collateralized by $418,900 U.S. Treasury Notes 4.625% due 5/15/06, market value $424,508) 415,800 415,800 ------- Total Repurchase Agreements (cost $1,554,000) 1,554,000 ========= Total Market Value of Securities Before Securities Lending Collateral - 134.48% (cost $82,654,786) 89,242,563 ========== Securities Lending Collateral** - 16.64% Short-Term Investments Fixed Rate Demand Notes - 2.07% Citigroup Global Markets 4.60% 3/1/06 1,229,716 1,229,716 Washington Mutual 4.54% 3/28/06 141,707 141,704 ------- 1,371,420 --------- oVariable Rate Demand Notes - 14.57% American Honda Finance 4.57% 2/21/07 318,871 318,835 ANZ National 4.55% 4/2/07 70,860 70,852 Australia New Zealand 4.55% 4/2/07 354,276 354,261 Bank of America 4.57% 2/23/07 460,606 460,540 Bank of New York 4.54% 4/2/07 283,398 283,409 Bank of the West 4.55% 3/2/06 354,261 354,261 Bayerische Landesbank 4.59% 8/25/06 354,198 354,261 Bear Stearns 4.63% 8/31/06 425,114 425,114 Beta Finance 4.58% 4/18/06 354,258 354,253 Canadian Imperial Bank 4.55% 4/2/07 177,095 177,131 CDC Financial Products 4.66% 3/31/06 460,540 460,540 Citigroup Global Markets 4.63% 3/7/06 460,540 460,540 Commonwealth Bank Australia 4.54% 4/2/07 354,291 354,261 Credit Suisse First Boston 4.55% 4/18/06 382,608 382,602 Goldman Sachs 4.70% 2/28/07 460,540 460,540 Manufacturers & Traders 4.57% 9/26/06 354,282 354,211 Marshall & Ilsley Bank 4.55% 4/2/07 389,713 389,688 Merrill Lynch Mortgage Capital 4.66% 3/7/06 318,835 318,835 Morgan Stanley 4.74% 2/28/07 439,284 439,284 National Australia Bank 4.54% 3/7/07 411,112 410,943 National City Bank 4.53% 3/2/07 428,800 428,882
Number of Market Shares Value (U.S.$) Nordea Bank Norge 4.55% 4/2/07 354,251 354,261 Procter & Gamble 4.46% 4/2/07 354,264 354,261 Royal Bank of Scotland 4.54% 4/2/07 354,254 354,261 Sigma Finance 4.58% 3/16/06 106,282 106,282 Societe Generale 4.54% 4/2/07 177,117 177,131 Toyota Motor Credit 4.55% 6/23/06 354,257 354,272 Wells Fargo 4.56% 4/2/07 354,199 354,261 ------- 9,667,972 --------- Total Securities Lending Collateral (cost $11,039,392) 11,039,392 ========== Total Market Value of Securities - 151.12% (cost $93,694,178) 100,281,955^ Obligation to Return Securities Lending Collateral - (16.64%)** (11,039,392) Borrowing Under Line of Credit - (34.66%) (23,000,000) Receivables and Other Assets Net of Liabilities (See Notes) - 0.18% 117,855 ======= Net Assets Applicable to 5,463,746 Shares Outstanding - 100.00% $ 66,360,418 ===============
iPrincipal amount shown is stated in the currency in which each foreign bond is denominated. AUD - Australian Dollar CAD - Canadian Dollar EUR - European Monetary Unit GBP - British Pound Sterling ISK - Iceland Krona JPY - Japanese Yen NOK - Norwegian Kroner NZD - New Zealand Dollar PLN - Polish Zloty SEK - Swedish Kroner USD - U.S. Dollar *Fully or partially on loan. **See Note 5 in "Notes." ^Includes $10,720,730 of securities loaned. oVariable rate security. The interest rate shown is the rate as of February 28, 2006. +Non-income producing security for the period ended February 28, 2006. ++Non-income producing security. Security is currently in default. <129>(TM)Step Coupon Bond. Indicates security that has a zero coupon that remains in effect until a predetermined date at which time the stated interest rate becomes effective. oSecurity is currently in default. The issue has missed the maturity date. Bankruptcy proceedings are in the process to determine distribution of assets. The date listed is the estimate of when proceedings will be finalized. =Security is being fair valued in accordance with the Fund's fair valuation policy. See Note 1 in "Notes." At February 28, 2006, two securities were fair valued which represented 0.63% of the Fund's net assets. @Illiquid security. At February 28, 2006, the aggregate amount of illiquid securities equals $3,816, which represented 0.01% of the Fund's net assets. See Note 6 in "Notes." #Security exempt from registration under Rule 144A of the Securities Act of 1933. At February 28, 2006, the aggregate amount of Rule 144A securities equals $4,481,126, which represented 6.75% of the Fund's net assets. See Note 6 in "Notes." oRestricted Security. Investment in a security not registered under the Securities Act of 1933. This security has certain restrictions on resale which may limit its liquidity. At February 28, 2006, the aggregate amount of the restricted security equals $920,568 or 1.39% of the Fund's net assets. See Note 6 in "Notes." Summary of Abbreviations: O.A.T. - Obligation Assimilable au Tresor (Treasury Obligation) ADR - American Depositary Receipts REIT - Real Estate Investment Trust The following foreign currency exchange contracts and forward foreign cross-currency exchange contracts were outstanding at February 28, 2006: Foreign Currency Exchange Contracts(1)
Unrealized Appreciation Contracts to Receive (Deliver) In Exchange For Settlement Date (Depreciation) ----------------------------- --------------- --------------- ------------- (737,700) CAD JPY (76,432,395) 3/3/06 $ 11,531 (818,000) EUR JPY (114,908,550) 3/3/06 17,635 (570,000) NZD USD (392,149) 3/3/06 14,841 251,573 EUR PLN 967,061 3/23/06 (4,463) 295,291 EUR GBP 202,000 3/23/06 (1,771) 370,497 EUR GBP 255,000 3/23/06 (4,948) 382,746 EUR NOK 3,079,000 3/3/06 98 383,029 EUR SEK 3,539,000 3/3/06 9,354 (82,887,000) JPY USD (691,626) 3/23/06 (26,226) 22,260,672 JPY NZD 286,000 3/3/06 3,037 55,283,438 JPY NOK 3,201,218 3/23/06 4,772 (602,872) EUR JPY (82,887,000) 3/23/06 (1,866) 3,201,218 NOK SEK 3,700,000 3/23/06 5,884 ----- $ 27,878 ==========
(1)See Note 4 in "Notes." -------------------------------------------------------------------------------- Notes 1. Significant Accounting Policies The following accounting policies are in accordance with U.S. generally accepted accounting principles and are consistently followed by Delaware Investments Global Dividend and Income Fund, Inc. (the "Fund"). Security Valuation - Equity securities, except those traded on the Nasdaq Stock Market, Inc. (Nasdaq), are valued at the last quoted sales price as of time of the regular close of the New York Stock Exchange (NYSE) on the valuation date. Securities traded on the Nasdaq are valued in accordance with the Nasdaq Official Closing Price, which may not be the last sales price. If on a particular day an equity security does not trade, then the mean between the bid and asked prices will be used. Securities listed on a foreign exchange are valued at the last quoted sales price before the Fund is valued. U.S. government and agency securities are valued at the mean between the bid and asked prices. Long-term debt securities are valued by an independent pricing service and such prices are believed to reflect the fair value of such securities. Short-term debt securities having less than 60 days to maturity are valued at amortized cost, which approximates market value. Securities lending collateral is valued at amortized cost, which approximates market value. Forward foreign currency exchange contracts and forward cross-currency exchange contracts are valued at the mean between the bid and asked prices of the contracts and are marked-to-market daily. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available. Other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of the Fund's Board of Directors. In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures, or with respect to foreign securities, aftermarket trading or significant events after local market trading (e.g., government actions or pronouncements, trading volume or volatility on markets, exchanges among dealers, or news events). Federal Income Taxes - The Fund intends to continue to qualify for federal income tax purposes as a regulated investment company and make the requisite distributions to shareholders. Accordingly, no provision for federal income taxes has been made in the financial statements. Distributions - The Fund has a managed distribution policy. Under the policy, the Fund declares and pays monthly distributions and is managed with a goal of generating as much of the distribution as possible from ordinary income (net investment income and short-term capital gains). The balance of the distribution then comes from long-term capital gains and, if necessary, a return of capital. The current annualized rate is $0.96 per share. The Fund continues to evaluate its monthly distribution in light of ongoing economic and market conditions and may change the amount of the monthly distributions in the future. Foreign Currency Transactions - Transactions denominated in foreign currencies are recorded at the prevailing exchange rates on the valuation date. The value of all assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of such currencies against the U.S. dollar daily. Transaction gains or losses resulting from changes in exchange rates during the reporting period or upon settlement of the foreign currency transaction are reported in operations for the current period. The Fund isolates that portion of realized gains and losses on investments in debt securities, which are due to changes in the foreign exchange rates from that which are due to changes in market prices of debt securities. The Fund reports certain foreign currency related transactions as components of realized gains (losses) for financial reporting purposes, where such components are treated as ordinary income (loss) for federal income tax purposes. Repurchase Agreements - The Fund may invest in a pooled cash account along with other members of the Delaware Investments(R) Family of Funds pursuant to an exemptive order issued by the Securities and Exchange Commission. The aggregate daily balance of the pooled cash account is invested in repurchase agreements secured by obligations of the U.S. government. The respective collateral is held by the Fund's custodian bank until the maturity of the respective repurchase agreements. Each repurchase agreement is 102% collateralized. However, in the event of default or bankruptcy by the counterparty to the agreement, realization of the collateral may be subject to legal proceedings. Use of Estimates - The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Other - Expenses common to all funds within the Delaware Investments(R) Family of Funds are allocated amongst the funds on the basis of average net assets. Management fees and some other expenses are paid monthly. Security transactions are recorded on the date the securities are purchased or sold (trade date) for financial reporting purposes. Costs used in calculating realized gains and losses on the sale of investment securities are those of the specific securities sold. Dividend income is recorded on the ex-dividend date and interest income is recorded on the accrual basis. Discounts and premiums on non-convertible securities are amortized to interest income over the lives of the respective securities. Foreign dividends are also recorded on the ex-dividend date or as soon after the ex-dividend date that the Fund is aware of such dividends, net of all non-rebatable tax withholdings. Withholding taxes on foreign dividends have been provided for in accordance with the Fund's understanding of the applicable country's tax rules and rates. Distributions received from investments in Real Estate Investment Trusts are recorded as dividend income on ex-dividend date, subject to reclassification upon notice of the character of such distribution by the issuer. 2. Investments At February 28, 2006, the cost of investments for federal income tax purposes has been estimated since the final tax characteristics cannot be determined until fiscal year end. At February 28, 2006, the cost of investments and unrealized appreciation (depreciation) for the Fund was as follows:
Cost of Investments $93,865,114 =========== ----------- Aggregate unrealized appreciation 9,032,898 Aggregate unrealized depreciation (2,616,057) ---------- Net unrealized appreciation $6,416,841 ----------
3. Line of Credit The Fund has entered into a Line of Credit Agreement with JP Morgan Chase for $25,000,000 that expires on January 18, 2007. At February 28, 2006, the par value of loans outstanding was $23,000,000 at a variable interest rate of 4.975%. During the period ended February 28, 2006, the average daily balance of loans outstanding was $23,000,000 at a weighted average interest rate of approximately 4.82%. The maximum amount of loans outstanding at any time during the period was $23,000,000. Interest on borrowings is based on market rates in effect at the time of borrowing. The commitment fee is computed at a rate of 0.15% per annum on the unused balance. The loan is collateralized by the Fund's portfolio. 4. Foreign Exchange Contracts The Fund may enter into forward foreign currency exchange contracts and forward foreign cross-currency exchange contracts as a way of managing foreign exchange rate risk. The Fund may enter into these contracts to fix the U.S. dollar value of a security that it has agreed to buy or sell for the period between the date the trade was entered into and the date the security is delivered and paid for. The Fund may also use these contracts to hedge the U.S. dollar value of securities it already owns that are denominated in foreign currencies. The change in market value is recorded as an unrealized gain or loss. When the contract is closed, a realized gain or loss is recorded equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The use of forward foreign currency exchange contracts and forward foreign cross-currency exchange contracts do not eliminate fluctuations in the underlying prices of the securities, but does establish a rate of exchange that can be achieved in the future. Although forward foreign currency exchange contracts and forward foreign cross-currency exchange contracts limit the risk of loss due to a decline in the value of the hedged currency, they also limit any potential gain that might result should the value of the currency increase. In addition, the Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts. 5. Securities Lending The Fund, along with other funds in the Delaware Investments(R) Family of Funds, may lend its securities pursuant to a security lending agreement (Lending Agreement) with JP 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 105% of the market value of the securities issued in 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 & Poors Ratings Group or Moody's Investors Service, Inc. or repurchase agreements collateralized by such securities. However, in the event of default or bankruptcy by the lending agent, realization and/or retention of the collateral may be subject to legal proceedings. In the event the borrower fails to return loaned securities and the collateral received is insufficient to cover the value of the loaned securities and provided such collateral shortfall is not the result of investment losses, the lending agent has agreed to pay the amount of the shortfall to the Fund, or at the discretion of the lending agent, replace the loaned securities. The Fund continues to record dividends on the securities loaned and is subject to change in value of the securities loaned that may occur during the term of the loan. The Fund has the right under the Lending Agreement to recover the securities from the borrower on demand. The security lending agent and the borrower retain a portion of the earnings from the collateral investments. The Fund records security lending income net of such allocation. At February 28, 2006, the market value of securities on loan was $10,720,730, for which cash collateral was received and invested in accordance with the Lending Agreement. Such investments are presented on the Schedule of Investments under the caption "Securities Lending Collateral." 6. Credit and Market Risks Some countries in which the Fund may invest require governmental approval for the repatriation of investment income, capital or the proceeds of sales of securities by foreign investors. In addition, if there is deterioration in a country's balance of payments or for other reasons, a country may impose temporary restrictions on foreign capital remittances abroad. The securities exchanges of certain foreign markets are substantially smaller, less liquid and more volatile than the major securities markets in the United States. Consequently, acquisition and disposition of securities by the Fund may be inhibited. In addition, a significant portion of the aggregate market value of equity securities listed on the major securities exchanges in emerging markets is held by a smaller number of investors. This may limit the number of shares available for acquisition or disposition by the Fund. The Fund invests a portion of its assets in high yield fixed income securities, which carry ratings of BB or lower by Standard & Poor's Ratings Group and/or Ba or lower by Moody's Investors Service, Inc. Investments in these higher yielding securities are generally accompanied by a greater degree of credit risk than higher rated securities. Additionally, lower rated securities may be more susceptible to adverse economic and competitive industry conditions than investment grade securities. The Fund may invest up to 10% of its total assets in illiquid securities, which may include securities with contractual restrictions on resale, securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended and other securities which may not be readily marketable. The relative illiquidity of these securities may impair the Fund from disposing of them in a timely manner and at a fair price when it is necessary or desirable to do so. While maintaining oversight, the Fund's Board of Directors has delegated to the Delaware Management Company the day-to-day functions of determining whether individual securities are liquid for purposes of the Fund's limitation on investments in illiquid assets. Rule 144A and Illiquid securities have been denoted on the Schedule of Investments. The Fund invests in the 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 period ended February 28, 2006. The Fund's REIT holdings are also affected by interest rate changes, particularly if the REITs it holds use floating rate debt to finance their ongoing operations. Item 2. Controls and Procedures. The registrant's principal executive officer and principal financial officer have evaluated the registrant's disclosure controls and procedures within 90 days of the filing of this report and have concluded that they are effective in providing reasonable assurance that the information required to be disclosed by the registrant in its reports or statements filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission. There were no significant changes in the registrant's internal control over financial reporting that occurred during the registrant's last fiscal quarter (the registrant's second fiscal half-year in the case of an annual report) that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 3. Exhibits. File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)), exactly as set forth below: SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. DELAWARE INVESTMENTS GLOBAL DIVIDEND AND INCOME FUND, INC. JUDE T. DRISCOLL ------------------------------------ By: Jude T. Driscoll Title: Chief Executive Officer Date: April 27, 2006 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. JUDE T. DRISCOLL ------------------------------------ By: Jude T. Driscoll Title: Chief Executive Officer Date: April 27, 2006 MICHAEL P. BISHOF ------------------------------------ By: Michael P. Bishof Title: Chief Financial Officer Date: April 27, 2006