N-CSR 1 delawareglobal_semi.txt CERTIFIED SHAREHOLDER REPORT UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number: 811-8246 Exact name of registrant as specified in charter: Delaware Investments Global Dividend and Income Fund, Inc. Address of principal executive offices: 2005 Market Street Philadelphia, PA 19103 Name and address of agent for service: David F. Connor, Esq. 2005 Market Street Philadelphia, PA 19103 Registrant's telephone number, including area code: (800) 523-1918 Date of fiscal year end: November 30 Date of reporting period: May 31, 2006 Item 1. Reports to Stockholders Semiannual Delaware Investments Report Global Dividend and Income Fund, Inc. May 31, 2006 [DELAWARE LOGO] Closed-End Table of contents > Sector and country allocation ...............................................1 > Statement of net assets .....................................................3 > Statement of operations ....................................................14 > Statements of changes in net assets ........................................15 > Statement of cash flows ....................................................16 > Financial highlights ...................................................... 17 > Notes to financial statements ..............................................18 > Other Fund information .....................................................22 > About the organization .....................................................24 Funds are not FDIC insured and are not guaranteed. It is possible to lose the principal amount invested. Mutual fund advisory services provided by Delaware Management Company, a series of Delaware Management Business Trust, which is a registered investment advisor. (C) 2006 Delaware Distributors, L.P. Sector and country allocation Delaware Investments Global Dividend and Income Fund, Inc. As of May 31, 2006 Percentage Sector/Country of Net Assets _______________________________________________________________________________ Common Stock 75.51% Consumer Discretionary 10.74% Consumer Staples 6.40% Energy 3.07% Financials 15.49% Health Care 9.61% Health Care REITs 0.41% Industrial REITs 1.21% Industrials 5.00% Information Technology 7.41% Lodging REITs 0.77% Mall REITs 0.79% Manufactured Housing REITs 0.20% Materials 3.30% Mortgage REITs 3.57% Office/Industrial REITs 1.13% Office REITs 1.00% Shopping Center REITs 0.35% Specialty REITs 0.40% Telecommunications 3.68% Utilities 0.98% _______________________________________________________________________________ Convertible Preferred Stock 3.42% Banking, Finance & Insurance 1.34% Basic Materials 0.29% Cable, Media & Publishing 0.20% Consumer Products 0.26% Energy 0.35% Food, Beverage & Tobacco 0.28% Telecommunications 0.11% Utilities 0.59% _______________________________________________________________________________ Preferred Stock 3.20% Leisure, Lodging & Entertainment 0.62% Real Estate 2.58% _______________________________________________________________________________ Right 0.01% _______________________________________________________________________________ Warrant 0.00% _______________________________________________________________________________ Agency Obligations 0.23% _______________________________________________________________________________ Commercial Mortgage-Backed Securities 0.12% _______________________________________________________________________________ Convertible Bonds 5.65% Aerospace & Defence 0.43% Cable, Media & Publishing 0.21% Computers & Technology 0.83% Energy 0.82% Health Care & Pharmaceuticals 1.01% Leisure, Lodging & Entertainment 0.25% Real Estate 0.48% Retail 0.67% Technology 0.41% Telecommunications 0.14% Transportation 0.07% Utilities 0.33% _______________________________________________________________________________ Corporate Bonds 20.48% Banking 0.14% Basic Industry 2.18% Brokerage 0.48% Capital Goods 1.05% Consumer Cyclical 1.87% Consumer Non-Cyclical 2.11% Energy 1.10% Finance & Investments 1.49% Media 2.48% Real Estate 0.40% Services Cyclical 2.51% Services Non-cyclical 1.00% Technology & Electronics 0.37% Telecommunications 2.12% Utilities 1.18% _______________________________________________________________________________ Foreign Agencies 2.66% Austria 0.33% Germany 1.87% United States 0.46% _______________________________________________________________________________ Regional Agencies 0.98% _______________________________________________________________________________ Regional Authority 0.47% _______________________________________________________________________________ Sovereign Agencies 1.59% France 0.92% Japan 0.67% _______________________________________________________________________________ Sovereign Debt 10.07% Austria 1.58% Czechoslovakia 0.23% France 1.54% Germany 2.13% Korea 0.69% Malaysia 0.45% Netherlands 0.34% Norway 0.47% Poland 0.46% Sweden 1.15% United Kingdom 1.03% _______________________________________________________________________________ Supranational Banks 4.52% _______________________________________________________________________________ Currency Options Purchased 0.00% _______________________________________________________________________________ (continues) 1 Sector and country allocation Delaware Investments Global Dividend and Income Fund, Inc. As of May 31, 2006 Percentage Sector/Country of Net Assets _______________________________________________________________________________ Repurchase Agreements 4.92% _______________________________________________________________________________ Securities Lending Collateral 23.25% Fixed Rate Notes 6.28% Variable Rate Notes 16.97% _______________________________________________________________________________ Total Market Value of Securities 157.08% _______________________________________________________________________________ Obligation to Return Securities Lending Collateral (23.25%) _______________________________________________________________________________ Borrowing Under Line of Credit (34.39%) _______________________________________________________________________________ Receivables and Other Assets Net of Liabilities 0.56% _______________________________________________________________________________ Total Net Assets 100.00% _______________________________________________________________________________ Country _______________________________________________________________________________ Australia 2.56% Austria 1.90% Belgium 0.66% Bermuda 0.24% British Virgin Islands 0.16% Canada 3.46% Cayman Islands 0.08% Denmark 0.78% Finland 1.14% France 8.05% Germany 6.28% Hong Kong 0.52% Ireland 0.08% Japan 7.35% Liberia 0.04% Luxembourg 0.93% Malaysia 0.45% Marshall Island 0.19% Mexico 1.10% Multinational 0.17% Netherlands 1.28% Netherlands Antilles 0.35% Norway 1.10% Poland 0.46% South Africa 0.70% South Korea 1.39% Slovakia 0.23% Supranational 4.52% Sweden 2.09% Switzerland 0.65% United Kingdom 6.76% United States 73.24% _______________________________________________________________________________ Total 128.91% _______________________________________________________________________________ 2 Statement of net assets Delaware Investments Global Dividend and Income Fund, Inc. May 31, 2006 (Unaudited) Number Market Value of Shares (U.S.$) _______________________________________________________________________________ Common Stock - 75.51%> _______________________________________________________________________________ Consumer Discretionary - 10.74% @=+II Avado Brands Restricted 272 $ 256 Bayerische Motoren Werke 10,200 526,059 DSG International 64,900 237,002 Esprit Holdings 43,000 345,702 Gap 35,700 649,740 *+ Great Wolf Resorts 19,000 224,580 Honda Motor 5,300 349,509 Kesa Electricals 90,300 500,380 * Lagardere Groupe 5,900 466,183 Limited Brands 28,200 765,913 Mattel 43,300 727,873 * Michelin 6,500 425,666 * Nissan 35,400 428,560 Sony 5,500 248,261 Travis Perkins 15,900 454,768 * Volkswagen 3,101 219,632 WPP Group 48,900 603,612 + XM Satellite Radio Holdings Class A 400 5,768 ____________ 7,179,464 ____________ Consumer Staples - 6.40% * B&G Foods 2,500 38,500 Coca-Cola Amatil 85,838 454,013 ConAgra Foods 31,800 718,680 Greggs 932 65,456 Heinz (H.J.) 17,500 741,125 * Kao 16,000 399,236 Kimberly-Clark 10,600 643,102 * Metro 10,460 593,580 Safeway 26,600 627,228 ____________ 4,280,920 ____________ Energy - 3.07% Chevron 11,100 663,669 ConocoPhillips 9,400 594,926 *+ Petroleum Geo-Services ADR 691 44,051 * Total 11,560 749,902 ____________ 2,052,548 ____________ Financials - 15.49% Allstate 11,600 638,116 Aon 17,500 623,875 * AXA 12,700 442,021 Chubb 12,800 646,784 * Dexia 18,100 444,193 Hartford Financial Services Group 7,300 641,962 HBOS 21,800 373,015 Huntington Bancshares 26,500 623,280 * ING Groep 15,800 619,031 * Kookmin Bank ADR 5,800 466,784 Mitsubishi UFJ Financial Group 33 453,484 Morgan Stanley 11,100 661,782 Nordea Bank AB 45,300 547,007 Royal & Sun Alliance Insurance Group 206,000 495,316 Royal Bank of Scotland Group 16,700 539,036 Standard Chartered 19,000 466,272 Wachovia 11,900 636,650 Washington Mutual 14,500 665,695 Westpac Banking 21,400 372,280 ____________ 10,356,583 ____________ Health Care - 9.61% Abbott Laboratories 16,000 683,201 Baxter International 16,700 629,590 Bristol-Myers Squibb 27,400 672,670 Merck 19,800 659,142 Novartis 7,800 432,551 Novo Nordisk 7,200 446,374 * Ono Pharmaceutical 9,100 445,666 Pfizer 27,000 638,820 * Sanofi-Aventis 5,300 500,150 Stada Arzneimittel 4,574 183,735 * Terumo 14,300 509,463 Wyeth 13,700 626,638 ____________ 6,428,000 ____________ Health Care REITs - 0.41% # Medical Properties Trust 144A 9,400 113,834 Ventas 4,900 158,956 ____________ 272,790 ____________ Industrial REITs - 1.21% AMB Property 6,600 326,238 ProLogis 9,800 484,610 ____________ 810,848 ____________ Industrials - 5.00% * Asahi Glass 23,000 306,181 + British Airways 71,700 457,758 Canadian Pacific Railway 8,800 452,163 * Compagnie de Saint-Gobain 6,800 476,579 Donnelley (R.R.) & Sons 20,100 646,818 *+ Foster Wheeler 1,769 78,292 * Macquarie Infrastructure 9,500 264,100 Waste Management 18,000 659,159 ____________ 3,341,050 ____________ Information Technology - 7.41% Canon 6,800 476,058 + CGI Group 76,600 507,630 Fujitsu 48,000 356,095 Hewlett-Packard 19,600 634,647 Intel 34,800 627,096 International Business Machines 7,700 615,230 Nokia Oyj 25,400 544,805 * Tandberg 44,900 383,717 (continues) 3 Statement of net assets Delaware Investments Global Dividend and Income Fund, Inc. May 31, 2006 (Unaudited) Number Market Value of Shares (U.S.$) _______________________________________________________________________________ Common Stock (continued) _______________________________________________________________________________ Information Technology (continued) TietoEnator Oyj 7,645 $ 217,347 + Xerox 43,000 590,390 __________ 4,953,015 __________ Lodging REITs - 0.77% * Highland Hospitality 13,600 164,560 * Strategic Hotel Capital 17,000 348,840 __________ 513,400 __________ Mall REITs - 0.79% Macerich 3,000 206,730 Simon Property Group 4,000 318,520 __________ 525,250 __________ Manufactured Housing REITs - 0.20% Equity Lifestyle Properties 3,100 133,765 __________ 133,765 __________ Materials - 3.30% Alcan Aluminium 6,400 331,460 Cemex 63,500 361,018 duPont (E.I.) deNemours 14,800 629,445 Lafarge 3,728 446,997 Rio Tinto 7,900 438,144 __________ 2,207,064 __________ Mortgage REITs - 3.57% * American Home Mortgage Investment 15,600 520,572 * Gramercy Capital 19,500 510,120 JER Investors Trust 13,000 203,190 II KKR Financial 24,600 530,130 II Peoples Choice 47,300 260,150 * Saxon Capital 32,400 361,260 __________ 2,385,422 __________ Office/Industrial REITs - 1.13% * Duke Realty 22,300 756,862 __________ 756,862 __________ Office REITs - 1.00% * Brandywine Realty Trust 10,763 312,342 * Reckson Associates Realty 9,300 357,492 __________ 669,834 __________ Shopping Center REITs - 0.35% Cedar Shopping Centers 7,300 106,142 * Ramco-Gershenson Properties 5,000 130,000 __________ 236,142 __________ Specialty REITs - 0.40% * Entertainment Properties Trust 6,600 270,930 __________ 270,930 __________ Telecommunications - 3.68% AT&T 25,700 669,742 * Telefonos de Mexico ADR 19,000 376,010 Telstra 82,500 231,024 Verizon Communications 20,900 652,289 Vodafone Group 231,290 533,456 __________ 2,462,521 __________ Utilities - 0.98% + Mirant 2,284 56,826 Progress Energy 14,300 601,172 __________ 657,998 __________ Total Common Stock (cost $43,999,710) 50,494,406 __________ _______________________________________________________________________________ Convertible Preferred Stock - 3.42%> _______________________________________________________________________________ Banking, Finance & Insurance - 1.34% Aspen Insurance 5.625% exercise price $29.28, expiration date 12/31/49 3,400 164,050 Chubb 7.00% exercise price $35.70, expiration date 8/16/06 4,100 145,591 ~ Citigroup Funding 5.02% exercise price $29.50, expiration date 9/27/08 7,000 224,420 E Trade Group 6.125% exercise price $21.82, expiration date 11/18/08 3,500 110,250 * Lehman Brothers Holdings 6.25% exercise price $54.24, expiration date 10/15/07 9,250 250,906 _________ 895,217 _________ Basic Materials - 0.29% Huntsman 5.00% exercise price $28.29, expiration date 2/16/08 4,600 192,625 _________ 192,625 _________ Cable, Media & Publishing - 0.20% *# Interpublic 5.25% 144A exercise price $13.66, expiration date 12/31/49 140 131,425 _________ 131,425 _________ Consumer Products - 0.26% Newell Financial Trust I 5.25% exercise price $50.69, expiration date 12/1/27 4,030 175,809 _________ 175,809 _________ Energy - 0.35% * Chesapeake 4.50% exercise price $44.17, expiration date 12/31/49 1,275 118,894 El Paso Energy Capital Trust 4.75% exercise price $41.59, expiration date 3/31/28 3,250 118,300 _________ 237,194 _________ Food, Beverage & Tobacco - 0.28% Constellation Brands 5.75% exercise price $17.08, expiration date 9/1/06 5,200 188,500 _________ 188,500 _________ Telecommunications - 0.11% Lucent Technologies Capital Trust I 7.75% exercise price $4.84, expiration date 3/15/17 70 70,761 _________ 70,761 _________ 4 Number Market Value of Shares (U.S.$) _______________________________________________________________________________ Convertible Preferred Stock (continued) _______________________________________________________________________________ Utilities - 0.59% Entergy 7.625% exercise price $87.64, expiration date 2/17/09 3,500 $ 176,313 NRG Energy 5.75% exercise price $60.45, expiration date 3/16/09 875 220,609 _________ 396,922 _________ Total Convertible Preferred Stock (cost $2,233,389) 2,288,453 _________ _______________________________________________________________________________ Preferred Stock - 3.20%> _______________________________________________________________________________ Leisure, Lodging & Entertainment - 0.62% * Red Lion Hotels 9.50% 15,700 414,166 _________ 414,166 _________ Real Estate - 2.58% Equity Inns Series B 8.75% 10,000 259,500 LaSalle Hotel Properties 10.25% 23,500 608,767 Ramco-Gershenson Properties 9.50% 11,500 294,975 SL Green Realty 7.625% 22,000 560,314 _________ 1,723,556 _________ Total Preferred Stock (cost $2,067,500) 2,137,722 _________ _______________________________________________________________________________ Right - 0.01% _______________________________________________________________________________ Arkema - Allotment Rights 2,890 10,259 _________ Total Right (cost $6,509) 10,259 _________ _______________________________________________________________________________ Warrant - 0.00% _______________________________________________________________________________ +# Solutia 144A, exercise price $7.59, expiration date 7/15/09 130 0 _________ Total Warrant (cost $11,059) 0 _________ Principal Amount o _______________________________________________________________________________ Agency Obligations - 0.23%> _______________________________________________________________________________ Fannie Mae 6.375% 8/15/07 AUD 203,000 153,266 _________ Total Agency Obligations (cost $155,146) 153,266 _________ _______________________________________________________________________________ Commercial Mortgage-Backed Securities - 0.12%> _______________________________________________________________________________ # First Union National Bank Commercial Mortgage Series 2001-C2 L 144A 6.46% 1/12/43 USD 85,000 84,472 _________ Total Commercial Mortgage-Backed Securities (cost $86,272) 84,472 _________ _______________________________________________________________________________ Convertible Bonds - 5.65%> _______________________________________________________________________________ Aerospace & Defense - 0.43% # AAR 144A 1.75% 2/1/26 exercise price $29.43, expiration date 2/1/26 90,000 90,788 EDO 4.00% 11/15/25 exercise price $34.19, expiration date 11/15/25 USD 90,000 91,238 # L-3 Communications 144A 3.00% 8/1/35 exercise price 102.31, expiration date 8/1/35 110,000 107,249 _________ 289,275 _________ Cable, Media & Publishing - 0.21% # Playboy Enterprises 144A 3.00% 3/15/25 exercise price $17.02, expiration date 3/15/25 160,000 139,400 _________ 139,400 _________ Computers & Technology - 0.83% Hutchinson Technology 3.25% 1/15/26 exercise price $36.43, expiration date 1/15/26 120,000 109,200 # Informatica 144A 3.00% 3/15/26 exercise price $20.00, expiration date 3/15/26 175,000 177,405 # Intel 144A 2.95% 12/15/35 exercise price $31.53, expiration date 12/15/35 105,000 86,888 SanDisk 1.00% 5/15/13 exercise price $82.36, expiration date 5/15/13 60,000 57,075 # Sybase 144A 1.75% 2/22/25 exercise price $25.22, expiration date 2/22/25 125,000 122,813 _________ 553,381 _________ Energy - 0.82% Halliburton 3.125% 7/15/23 exercise price $37.65, expiration date 7/15/23 100,000 202,125 Pride International 3.25% 5/1/33 exercise price $25.70, expiration date 5/1/33 80,000 110,100 Schlumberger 2.125% 6/1/23 exercise price $40.00, expiration date 6/1/23 140,000 233,800 _________ 546,025 _________ Health Care & Pharmaceuticals - 1.01% # Allergan 144A 1.50% 4/1/26 exercise price $126.66, expiration date 4/1/26 150,000 142,688 (continues) 5 Statement of net assets Delaware Investments Global Dividend and Income Fund, Inc. May 31, 2006 (Unaudited) Principal Market Value Amount o (U.S.$) _______________________________________________________________________________ Convertible Bonds (continued) _______________________________________________________________________________ Health Care & Pharmaceuticals (continued) # Amgen 144A 0.375% 2/1/13 exercise price $79.48, expiration date 2/1/13 USD 60,000 $ 57,600 CV Therapeutics 3.25% 8/16/13 exercise price $27.00, expiration date 8/16/13 45,000 41,400 Encysive Pharmaceuticals 2.50% 3/15/12 exercise price $13.95, expiration date 3/15/12 245,000 173,337 # Nektar Therapeutics Convertible 144A 3.25% 9/28/12 exercise price $21.52, expiration date 9/28/12 125,000 141,406 Teva Pharmaceutical Finance 0.25% 2/1/26 exercise price $47.16, expiration date 2/1/26 120,000 117,300 _________ 673,731 _________ Leisure, Lodging & Entertainment - 0.25% # Regal Entertainment Group 144A 3.75% 5/15/08 exercise price $14.97, expiration date 5/15/08 130,000 168,350 _________ 168,350 _________ Real Estate - 0.48% MeriStar Hospitality 9.50% 4/1/10 exercise price $10.18, expiration date 4/1/10 300,000 319,875 _________ 319,875 _________ Retail - 0.67% *{ Dick's Sporting Goods 1.606% 2/18/24 exercise price $58.13, expiration date 2/18/24 140,000 105,700 ~ Lowe's Companies 0.861% 10/19/21 exercise price $50.03, expiration date 10/19/21 95,000 103,550 # Saks 144A 2.00% 3/15/24 exercise price $14.92, expiration date 3/15/24 125,000 144,219 # United Auto Group 144A 3.50% 4/1/26 exercise price $23.69, expiration date 4/1/26 90,000 96,750 _________ 450,219 _________ Technology - 0.41% # Mercury Interactive 144A 4.75% 7/1/07 exercise price $111.25 expiration date 7/1/07 275,000 274,656 _________ 274,656 _________ Telecommunications - 0.14% * Qwest Communications International 3.50% 11/15/25 exercise price $5.90, expiration date 11/15/25 70,000 95,288 _________ 95,288 _________ Transportation - 0.07% *# ExpressJet Holdings 144A 4.25% 8/1/23 exercise price $18.20, expiration date 8/1/23 50,000 45,188 _________ 45,188 _________ Utilities - 0.33% # CenterPoint Energy 144A 3.75% 5/15/23 exercise price $11.44, expiration date 5/15/23 200,000 224,000 _________ 224,000 _________ Total Convertible Bonds (cost $3,691,766) 3,779,388 _________ _______________________________________________________________________________ Corporate Bonds - 20.48%> _______________________________________________________________________________ Banking - 0.14% Western Financial Bank 9.625% 5/15/12 85,000 94,350 _________ 94,350 _________ Basic Industry - 2.18% Abitibi-Consolidated 6.95% 12/15/06 5,000 5,050 7.875% 8/1/09 50,000 49,375 * AK Steel 7.875% 2/15/09 85,000 84,788 BCP Caylux 9.625% 6/15/14 1,000 1,103 Bowater 9.50% 10/15/12 140,000 143,499 Chemtura 6.875% 6/1/16 65,000 63,375 Donohue Forest Products 7.625% 5/15/07 65,000 65,813 Georgia-Pacific 8.875% 5/15/31 15,000 15,450 9.50% 12/1/11 75,000 80,625 Gold Kist 10.25% 3/15/14 60,000 63,600 Huntsman International 10.125% 7/1/09 25,000 25,563 * Lyondell Chemical 10.50% 6/1/13 10,000 11,250 *# Nell AF Sarl 144A 8.375% 8/15/15 75,000 74,438 6 Principal Market Value Amount o (U.S.$) _______________________________________________________________________________ Corporate Bonds (continued) _______________________________________________________________________________ Basic Industry (continued) NewPage 10.00% 5/1/12 USD 50,000 $ 53,125 Norske Skog 8.625% 6/15/11 100,000 100,000 # Port Townsend Paper 144A 12.00% 4/15/11 100,000 83,000 Potlatch 13.00% 12/1/09 95,000 112,138 * Rhodia 8.875% 6/1/11 87,000 88,305 Smurfit Capital Funding 7.50% 11/20/25 55,000 51,150 *++ Solutia 6.72% 10/15/37 120,000 112,200 Tembec Industries 8.625% 6/30/09 215,000 121,474 Witco 6.875% 2/1/26 60,000 54,300 __________ 1,459,621 __________ Brokerage - 0.48% E Trade Financial 8.00% 6/15/11 120,000 124,800 LaBranche & Company 9.50% 5/15/09 90,000 96,075 11.00% 5/15/12 90,000 99,225 __________ 320,100 __________ Capital Goods - 1.05% Armor Holdings 8.25% 8/15/13 55,000 58,163 # Compression Polymer 144A 10.50% 7/1/13 30,000 31,350 * Graham Packaging 9.875% 10/15/14 65,000 66,625 Interface 10.375% 2/1/10 100,000 110,375 Interline Brands 11.50% 5/15/11 120,000 133,500 Intertape Polymer 8.50% 8/1/14 115,000 108,675 ? Mueller Holdings 14.75% 4/15/14 60,000 50,700 # Panolam Industrial 144A 10.75% 10/1/13 55,000 54,450 Trimas 9.875% 6/15/12 95,000 91,200 __________ 705,038 __________ Consumer Cyclical - 1.87% * Accuride 8.50% 2/1/15 65,000 63,863 Carrols 9.00% 1/15/13 40,000 40,600 Ford Motor Credit 7.375% 10/28/09 75,000 69,132 * General Motors 8.375% 7/15/33 30,000 22,913 General Motors Acceptance Corporation 6.875% 9/15/11 100,000 94,043 7.50% 12/1/06 NZD 354,000 219,841 *8.00% 11/1/31 USD 55,000 51,796 Landry's Restaurant 7.50% 12/15/14 75,000 70,688 * Mandalay Resort Group 9.50% 8/1/08 90,000 96,300 * Metaldyne 10.00% 11/1/13 120,000 115,799 # Neiman Marcus 144A 9.00% 10/15/15 55,000 57,544 *# NPC International 144A 9.50% 5/1/14 85,000 85,425 * O'Charleys 9.00% 11/1/13 50,000 51,375 # Uno Restaurant 144A 10.00% 2/15/11 45,000 36,450 * Visteon 7.00% 3/10/14 20,000 16,650 8.25% 8/1/10 60,000 56,100 *Warnaco 8.875% 6/15/13 100,000 103,500 __________ 1,252,019 __________ Consumer Non-Cyclical - 2.11% # Angiotech Pharmaceuticals 144A 7.75% 4/1/14 65,000 65,163 Biovail 7.875% 4/1/10 170,000 172,974 Constellation Brands 8.125% 1/15/12 165,000 170,363 Cott Beverages 8.00% 12/15/11 110,000 110,825 * Del Laboratories 8.00% 2/1/12 35,000 28,875 Doane Pet Care 10.625% 11/15/15 50,000 62,417 * Dole Food 8.875% 3/15/11 75,000 73,781 # iPayment 144A 9.75% 5/15/14 50,000 50,375 # Le-Natures 144A 10.00% 6/15/13 65,000 68,494 Marsh Supermarket 8.875% 8/1/07 10,000 9,925 National Beef Packing 10.50% 8/1/11 80,000 80,800 Pilgrim's Pride 9.625% 9/15/11 90,000 94,725 * Pinnacle Foods 8.25% 12/1/13 70,000 69,125 Playtex Products 9.375% 6/1/11 100,000 104,750 RJ Reynolds Tobacco Holdings 7.875% 5/15/09 25,000 25,875 True Temper Sports 8.375% 9/15/11 95,000 89,300 * Warner Chilcott 8.75% 2/1/15 130,000 130,325 __________ 1,408,092 __________ (continues) 7 Statement of net assets Delaware Investments Global Dividend and Income Fund, Inc. May 31, 2006 (Unaudited) Principal Market Value Amount o (U.S.$) _______________________________________________________________________________ Corporate Bonds (continued) _______________________________________________________________________________ Energy - 1.10% # Basic Energy Services 144A 7.125% 4/15/16 USD 25,000 $ 24,375 * Bluewater Finance 10.25% 2/15/12 55,000 57,200 *# Brigham Exploration 144A 9.625% 5/1/14 25,000 24,906 Compton Petroleum Finance 7.625% 12/1/13 40,000 39,200 # Copano Energy 144A 8.125% 3/1/16 25,000 25,500 El Paso Natural Gas 7.625% 8/1/10 45,000 46,688 El Paso Production Holding 7.75% 6/1/13 100,000 102,500 # Hilcorp Energy I 144A 7.75% 11/1/15 30,000 29,700 10.50% 9/1/10 22,000 24,035 Inergy Finance 6.875% 12/15/14 50,000 47,375 8.25% 3/1/16 20,000 20,600 Quicksilver Resources 7.125% 4/1/16 50,000 48,000 ~ Secunda International 13.068% 9/1/12 55,000 58,025 Tennessee Gas Pipeline 8.375% 6/15/32 70,000 76,961 # VeraSun Energy 144A 9.875% 12/15/12 60,000 64,800 * Whiting Petroleum 7.25% 5/1/13 50,000 49,000 __________ 738,865 __________ Finance & Investments - 1.49% ERAP 3.75% 4/25/10 EUR 100,000 128,484 FINOVA Group 7.50% 11/15/09 USD 217,300 71,166 # Hughes Network Systems 144A 9.50% 4/15/14 105,000 106,575 Residential Capital 5.125% 5/17/12 EUR 170,000 217,552 6.375% 5/17/13 GBP 80,000 150,411 SLM 6.50% 6/15/10 NZD 510,000 319,670 __________ 993,858 __________ Media - 2.48% } Adelphia Communications 8.125% 7/15/06 USD 90,000 41,850 # Affinion Group 144A 11.50% 10/15/15 35,000 35,788 * CCH I 11.00% 10/1/15 92,000 79,580 *++ Century Communications 9.50% 9/1/06 105,000 97,125 * Cenveo 9.625% 3/15/12 65,000 69,591 # Charter Communications 144A 5.875% 11/16/09 40,000 29,150 Charter Communications Holdings 11.125% 1/15/11 55,000 34,925 ? 13.50% 1/15/11 170,000 111,350 ~# Cleveland Unlimited 144A 13.16% 12/15/10 40,000 42,600 * CSC Holdings 10.50% 5/15/16 125,000 131,875 Dex Media East 12.125% 11/15/12 55,000 62,288 * Insight Midwest 10.50% 11/1/10 185,000 194,943 * Lodgenet Entertainment 9.50% 6/15/13 140,000 150,499 * Mediacom Capital 9.50% 1/15/13 135,000 136,350 # RH Donnelley 144A 8.875% 1/15/16 60,000 60,600 Sheridan Group 10.25% 8/15/11 40,000 41,000 * Sirius Satellite 9.625% 8/1/13 20,000 19,000 * Vertis 10.875% 6/15/09 50,000 49,000 * Warner Music Group 7.375% 4/15/14 120,000 119,400 *# XM Satellite Radio 144A 9.75% 5/1/14 160,000 149,600 __________ 1,656,514 __________ Real Estate - 0.40% American Real Estate Partners 8.125% 6/1/12 100,000 102,500 BF Saul REIT 7.50% 3/1/14 110,000 112,750 # Rouse 144A 6.75% 5/1/13 30,000 29,850 Tanger Properties 9.125% 2/15/08 20,000 20,968 __________ 266,068 __________ Services Cyclical - 2.51% Adesa 7.625% 6/15/12 105,000 106,050 American Airlines 7.379% 5/23/16 28,051 25,647 Brickman Group 11.75% 12/15/09 130,000 141,374 *# CCM Merger 144A 8.00% 8/1/13 85,000 82,025 Corrections Corporation of America 7.50% 5/1/11 100,000 101,500 FTI Consulting 7.625% 6/15/13 90,000 92,925 *# Galaxy Entertainment Finance 144A 9.875% 12/15/12 100,000 105,000 8 Principal Market Value Amount o (U.S.$) _______________________________________________________________________________ Corporate Bonds (continued) _______________________________________________________________________________ Services Cyclical (continued) * Gaylord Entertainment 8.00% 11/15/13 USD 65,000 $ 66,625 ? H-Lines Finance Holdings 11.00% 4/1/13 138,000 117,990 # Hertz 144A 8.875% 1/1/14 40,000 41,800 * 10.50% 1/1/16 15,000 16,313 Horizon Lines 9.00% 11/1/12 44,000 46,200 Kansas City Southern Railway 9.50% 10/1/08 175,000 184,624 # Knowledge Learning 144A 7.75% 2/1/15 65,000 61,994 OMI 7.625% 12/1/13 130,000 130,000 Royal Caribbean Cruises 7.25% 3/15/18 25,000 25,092 Seabulk International 9.50% 8/15/13 50,000 55,750 Stena 9.625% 12/1/12 70,000 75,425 ? Town Sports International 11.00% 2/1/14 95,000 76,000 Wheeling Island Gaming 10.125% 12/15/09 120,000 125,400 ___________ 1,677,734 ___________ Services Non-cyclical - 1.00% Aleris International 9.00% 11/15/14 80,000 83,400 Allied Waste North America 9.25% 9/1/12 45,000 48,206 Casella Waste Systems 9.75% 2/1/13 105,000 111,431 # CRC Health 144A 10.75% 2/1/16 105,000 108,675 * Geo Subordinate 11.00% 5/15/12 95,000 96,425 * US Oncology 10.75% 8/15/14 76,000 84,455 ? Vanguard Health 11.25% 10/1/15 180,000 133,201 ___________ 665,793 ___________ Technology & Electronics - 0.37% * Magnachip Semiconductor 8.00% 12/15/14 130,000 113,750 # Sensata Technologies BV 144A 8.00% 5/1/14 10,000 9,900 *# Sungard Data Systems 144A 10.25% 8/15/15 120,000 126,000 ___________ 249,650 ___________ Telecommunications - 2.12% * American Cellular 10.00% 8/1/11 60,000 64,725 * American Tower 7.125% 10/15/12 80,000 82,200 * Cincinnati Bell 8.375% 1/15/14 120,000 121,800 ? Inmarsat Finance 10.375% 11/15/12 155,000 132,912 iPCS 11.50% 5/1/12 115,000 131,675 ~ IWO Holdings 8.818% 1/15/12 15,000 15,638 # Nordic Telephone Company Holdings 144A 8.875% 5/1/16 75,000 77,813 PanAmSat 9.00% 8/15/14 60,000 62,550 ~ Qwest 8.16% 6/15/13 65,000 70,444 Rural Cellular 9.875% 2/1/10 75,000 79,313 *~# Rural Cellular 144A 10.899% 11/1/12 50,000 52,375 SunCom Wireless 9.375% 2/1/11 315,000 233,099 # Telcordia Technologies 144A 10.00% 3/15/13 145,000 137,387 ~ US LEC 13.62% 10/1/09 45,000 48,375 *# Wind Acquisition 144A 10.75% 12/1/15 100,000 108,250 ___________ 1,418,556 ___________ Utilities - 1.18% ++# Calpine 144A 9.90% 7/15/07 68,425 66,885 Elwood Energy 8.159% 7/5/26 104,031 112,207 Hydro Quebec 10.50% 10/15/21 CAD 55,000 78,768 Midwest Generation 8.30% 7/2/09 USD 100,000 102,500 8.75% 5/1/34 90,000 96,750 Mirant Americas 8.30% 5/1/11 125,000 125,625 NRG Energy 7.25% 2/1/14 125,000 125,313 Orion Power Holdings 12.00% 5/1/10 70,000 79,275 =++# USGen New England 144A 7.459% 1/2/15 50,000 360 ___________ 787,683 ___________ Total Corporate Bonds (cost $13,803,567) 13,693,941 ___________ (continues) 9 Statement of net assets Delaware Investments Global Dividend and Income Fund, Inc. May 31, 2006 (Unaudited) Principal Market Value Amount o (U.S.$) _______________________________________________________________________________ Foreign Agencies - 2.66% _______________________________________________________________________________ Austria - 0.33% Oesterreichische Kontrollbank 1.80% 3/22/10 JPY 24,000,000 $ 218,409 __________ 218,409 __________ Germany - 1.87% KFW 2.05% 2/16/26 JPY 27,000,000 236,759 4.75% 12/7/10 GBP 170,000 315,591 4.95% 10/14/14 CAD 85,000 78,088 6.50% 11/15/11 NZD 249,000 157,305 Rentenbank 1.375% 4/25/13 JPY 53,000,000 462,883 __________ 1,250,626 __________ United States - 0.46% KFW International Finance 1.75% 3/23/10 JPY 34,000,000 308,853 __________ 308,853 __________ Total Foreign Agencies (cost $1,807,665) 1,777,888 __________ _______________________________________________________________________________ Regional Agencies - 0.98% _______________________________________________________________________________ Australia - 0.98% New South Wales Treasury 6.00% 5/1/12 AUD 255,000 192,131 Queensland Treasury 5.50% 5/14/10 AUD 416,000 309,538 6.00% 7/14/09 AUD 200,000 151,424 __________ Total Regional Agencies (cost $665,777) 653,093 __________ _______________________________________________________________________________ Regional Authority - 0.47% _______________________________________________________________________________ Canada - 0.47% Ontario Province 4.50% 3/8/15 CAD 89,000 79,413 5.375% 12/2/12 CAD 81,000 76,775 Quebec Province 5.00% 12/1/15 CAD 172,000 157,480 __________ Total Regional Authority (cost $304,521) 313,668 __________ _______________________________________________________________________________ Sovereign Agencies - 1.59% _______________________________________________________________________________ France - 0.92% Caisse d'Amortissement de la Dette Sociale 3.625% 4/25/16 EUR 500,000 616,883 __________ 616,883 __________ Japan - 0.67% Development Bank of Japan 1.70% 9/20/22 JPY 21,000,000 176,671 Japan Finance Corporation for Municipal Enterprises 2.00% 5/9/16 JPY 30,000,000 270,833 __________ 447,504 __________ Total Sovereign Agencies (cost $1,061,575) 1,064,387 __________ _______________________________________________________________________________ Sovereign Debt - 10.07% _______________________________________________________________________________ Austria - 1.58% # Republic of Austria 144A 4.00% 9/15/16 EUR 102,000 130,764 Republic of Austria 5.25% 1/4/11 EUR 231,000 315,318 9.00% 9/15/06 ISK 44,300,000 609,943 __________ 1,056,025 __________ Czechoslovakia - 0.23% Slovak Republic 4.00% 3/26/21 EUR 125,000 153,460 __________ 153,460 __________ France - 1.54% France Government O.A.T 3.50% 4/25/15 EUR 250,000 309,432 France Government O.A.T. 4.00% 4/25/55 EUR 192,000 231,852 French Treasury Note 2.75% 3/12/08 EUR 385,000 488,531 __________ 1,029,815 __________ Germany - 2.13% Deutschland Republic 4.75% 7/4/08 EUR 724,000 952,262 6.25% 1/4/24 EUR 294,000 472,054 __________ 1,424,316 __________ Korea - 0.69% Korea Government 4.83% 5/10/08 KRW 436,000,000 462,146 __________ 462,146 __________ Malaysia - 0.45% Malaysian Government 3.756% 4/28/11 MYR 565,000 150,450 7.00% 3/15/09 MYR 509,000 149,031 __________ 299,481 __________ Netherlands - 0.34% Netherlands Government 5.75% 2/15/07 EUR 176,000 229,505 __________ 229,505 __________ Norway - 0.47% Norwegian Government 6.00% 5/16/11 NOK 875,000 156,594 6.50% 5/15/13 NOK 827,000 155,213 __________ 311,807 __________ Poland - 0.46% Poland Government 6.00% 11/24/10 PLN 905,000 305,911 __________ 305,911 __________ 10 Principal Market Value Amount o (U.S.$) _______________________________________________________________________________ Sovereign Debt (continued) _______________________________________________________________________________ Sweden - 1.15% Sweden Government 1.00% 4/1/12 SEK 2,325,000 $ 311,084 5.00% 12/1/20 SEK 1,020,000 157,317 * 5.50% 10/8/12 SEK 2,000,000 304,350 __________ 772,751 __________ United Kingdom - 1.03% U.K. Treasury 4.75% 9/7/15 GBP 144,500 272,806 5.00% 3/7/12 GBP 27,000 51,393 8.00% 6/7/21 GBP 84,000 215,259 9.00% 7/12/11 GBP 67,000 149,611 __________ 689,069 __________ Total Sovereign Debt (cost $6,779,758) 6,734,286 __________ _______________________________________________________________________________ Supranational Banks - 4.52% _______________________________________________________________________________ Asia Development Bank 0.50% 10/9/12 AUD 255,000 136,716 European Investment Bank 1.40% 6/20/17 JPY 55,300,000 468,397 1.90% 1/26/26 JPY 27,600,000 235,812 3.625% 10/15/11 EUR 243,000 308,583 4.00% 10/15/37 EUR 462,000 547,836 4.25% 12/7/10 GBP 173,000 314,772 4.375% 7/8/15 GBP 168,000 301,886 Inter-American Development Bank 1.90% 7/8/09 JPY 51,000,000 465,088 ^ International Bank for Reconstruction & Development 7.074% 8/20/07 NZD 412,000 240,974 __________ Total Supranational Banks (cost $3,035,033) 3,020,064 __________ _______________________________________________________________________________ Currency Options Purchased - 0.00% _______________________________________________________________________________ Put USD 690,000 Call JPY 75,900,000 expiration date 08/11/06 2,363 __________ Total Currency Options Purchased (cost $5,813) 2,363 __________ _______________________________________________________________________________ Repurchase Agreements - 4.92% _______________________________________________________________________________ With BNP Paribas 4.88% 6/1/06 (dated 5/31/06, to be repurchased at $2,068,580, collateralized by $772,600 U.S. Treasury Notes 2.375% due 8/31/06, market value $772,315, $598,800 U.S. Treasury Notes 2.75% due 7/31/06, market value $602,152, $458,400 U.S. Treasury Notes 2.875% due 11/30/06, market value $453,456 and $264,500 U.S. Treasury Notes 6.50% due 2/15/10, market value $283,053) USD 2,068,300 2,068,300 With Cantor Fitzgerald 4.88% 6/1/06 (dated 5/31/06, to be repurchased at $1,220,865, collateralized by $530,700 U.S. Treasury Notes 2.50% due 9/30/06, market value $528,839, $530,700 U.S. Treasury Notes 3.50% due 11/15/06, market value $528,196 and $179,800 U.S. Treasury Notes 6.00% due 8/15/09, market value $188,312) 1,220,700 1,220,700 ___________ Total Repurchase Agreements (cost $3,289,000) 3,289,000 ___________ Total Market Value of Securities Before Securities Lending Collateral - 133.83% (cost $83,004,060) 89,496,655 ___________ _______________________________________________________________________________ Securities Lending Collateral** - 23.25% _______________________________________________________________________________ Short-Term Investments Fixed Rate Notes - 6.28% Calyon 5.05% 6/19/06 520,398 520,398 Citigroup Global Markets 5.10% 6/1/06 2,436,817 2,436,817 (continues) 11 Statement of net assets Delaware Investments Global Dividend and Income Fund, Inc. May 31, 2006 (Unaudited) Principal Market Value Amount o (U.S.$) _______________________________________________________________________________ Securities Lending Collateral** (continued) _______________________________________________________________________________ Fixed Rate Notes (continued) Deutsche Bank London 5.00% 6/29/06 USD 600,459 $ 600,459 Washington Mutual Grand 5.00% 6/30/06 640,489 640,489 ____________ 4,198,163 ____________ ~ Variable Rate Notes - 16.97% American Honda Finance 5.07% 2/21/07 360,275 360,275 ANZ National 5.05% 7/2/07 80,061 80,061 Australia New Zealand 5.06% 7/2/07 400,306 400,306 Bank of America 5.07% 2/23/07 520,397 520,397 Bank of New York 5.07% 7/2/07 320,245 320,245 Barclays New York 5.06% 5/18/07 520,397 520,397 Bayerische Landesbank 5.10% 8/25/06 400,306 400,306 Bear Stearns 5.13% 10/30/06 480,367 480,367 BNP Paribas 5.14% 7/2/07 400,306 400,306 Canadian Imperial Bank 5.06% 5/29/07 200,153 200,153 Canadian Imperial Bank 5.07% 11/22/06 400,306 400,306 CDC Financial Products 5.16% 6/30/06 520,397 520,397 Citigroup Global Markets 5.13% 6/7/06 520,397 520,397 Commonwealth Bank 5.05% 7/2/07 400,306 400,306 Goldman Sachs 5.20% 5/31/07 520,398 520,398 Manufacturers & Traders 5.07% 9/26/06 400,304 400,273 Marshall & Ilsley Bank 5.06% 7/2/07 440,336 440,336 Merrill Lynch Mortgage Capital 5.16% 6/7/06 360,275 360,275 Morgan Stanley 5.24% 5/31/07 496,379 496,379 National Australia Bank 5.04% 3/7/07 496,379 496,379 National City Bank 5.07% 3/2/07 480,412 480,546 National Rural Utilities 5.07% 7/2/07 632,483 632,483 Nordea Bank New York 5.06% 5/16/07 200,152 200,143 Nordea Bank Norge 5.06% 7/2/07 400,306 400,306 Royal Bank of Scotland 5.07% 7/2/07 400,306 400,306 Societe Generale 4.99% 7/2/07 200,153 200,153 Toyota Motor Credit 5.05% 6/23/06 400,307 400,309 Wells Fargo 5.07% 7/2/07 400,306 400,306 ____________ 11,352,811 ____________ Total Securities Lending Collateral (cost $15,550,974) 15,550,974 ____________ Total Market Value of Securities - 157.08% (cost $98,555,034) 105,047,629! Obligation to Return Securities Lending Collateral** - (23.25%) (15,550,974) Borrowing Under Line of Credit - (34.39%) (23,000,000) Receivables and Other Assets Net of Liabilities - 0.56% 378,144 ____________ Net Assets Applicable to 5,463,746 Shares Outstanding; Equivalent to $12.24 per Share - 100.00% $66,874,799 ____________ Components of Net Assets at May 31, 2006: Common stock, $0.01 par value, 500,000,000 shares authorized to the Fund $58,693,534 Undistributed net investment income 16,577 Accumulated net realized gain on investments 1,695,677 Net unrealized appreciation of investments and foreign currencies 6,469,011 ____________ Total net assets $66,874,799 ____________ o Principal amount shown is stated in the currency in which each security is denominated: AUD - Australian Dollar CAD - Canadian Dollar EUR - European Monetary Unit GBP - British Pound Sterling ISK - Iceland Krona JPY - Japanese Yen KRW - South Korean Won MYR - Malaysian Ringgit NOK - Norwegian Kroner NZD - New Zealand Dollar PLN - Polish Zloty SEK - Swedish Krona USD - United States Dollar # Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At May 31, 2006, the aggregate amount of Rule 144A securities equaled $4,728,840, which represented 7.07% of the Fund's net assets. See Note 9 in "Notes to Financial Statements." II Restricted Security. Investment in a security not registered under the Securities Act of 1933, as amended. This security has certain restrictions on resale which may limit its liquidity. At May 31, 2006, the aggregate amount of the restricted securities equaled $904,370 or 1.35% of the Fund's net assets. See Note 9 in "Notes to Financial Statements." * Fully or partially on loan. 12 ** See Note 8 in "Notes to Financial Statements." ! Includes $14,898,604 of securities loaned. ~ Variable rate security. The interest rate shown is the rate as of May 31, 2006. + Non-income producing security for the period ended May 31, 2006. ++ Non-income producing security. Security is currently in default. ? Step Coupon Bond. Indicates security that has a zero coupon that remains in effect until a predetermined date at which time the stated interest rate becomes effective. { Step coupon bond. Coupon increases/decreases periodically based on a predetermined schedule. Stated interest rate in effect at May 31, 2006. @ Illiquid security. At May 31, 2006, the aggregate amount of illiquid securities equaled $256, which represented 0.00% of the Fund's net assets. See Note 9 in "Notes to Financial Statements." } Security is currently in default. The issue has missed the maturity date. Bankruptcy proceedings are in process to determine distribution of assets. The date listed is the estimate of when proceedings will be finalized. > Securities have been classified by type of business. Classification by country of origin has been presented on pages 1 and 2 in "Sector and Country Allocation." ^ Zero coupon security. The interest rate shown is the yield at the time of purchase. = Security is being fair valued in accordance with the Fund's fair valuation policy. At May 31, 2006, the aggregate amount of fair valued securities equaled $616, which represented 0.00% of the Fund's net assets. See Note 1 in "Notes to Financial Statements." Summary of Abbreviations: ADR - American Depositary Receipt O.A.T. - Obligation Assimilable au Tresor (Treasury Obligation) REIT - Real Estate Investment Trust The following foreign currency exchange contracts and forward foreign cross-currency exchange contracts were outstanding at May 31, 2006: Foreign Currency Exchange Contracts and Forward Foreign Cross-Currency Exchange Contracts(1) Unrealized Contracts to Settlement Appreciation Receive In Exchange For Date (Depreciation) ______________ _____________________ _____________ ________________ 108,146 AUD USD (81,650) 6/1/06 $ (265) 38,882 EUR CAD (56,000) 6/26/06 (958) 128,254 EUR PLN (506,061) 6/26/06 (27) 163,626 EUR ISK (18,626,080) 9/15/06 (43,381) 208,845 EUR SEK (1,937,000) 6/26/06 (510) 240,453 EUR NOK (1,867,000) 6/26/06 1,157 830,211 EUR GBP (572,000) 6/26/06 (4,188) 5,375 GBP USD (10,131) 6/1/06 (80) 101,323,442 JPY NZD (1,426,100) 6/26/06 (1,528) 105,883,229 JPY AUD (1,258,900) 6/26/06 (2,584) 174,828,282 JPY EUR (1,209,000) 6/26/06 7,227 _________ $(45,137) _________ (1)See Note 7 in "Notes to Financial Statements." See accompanying notes. 13 Statement of operations Delaware Investments Global Dividend and Income Fund, Inc. Six Months Ended May 31, 2006 (Unaudited) Investment Income: Dividends $807,598 Interest 918,977 Securities lending income 19,037 Foreign tax withheld (26,793) $1,718,819 ________ __________ Expenses: Management fees 315,384 Legal and professional fees 25,362 Reports to shareholders 23,671 Transfer agent fees 21,656 Accounting and administration expenses 17,975 Custodian fees 16,195 NYSE fees 12,499 Pricing fees 7,230 Taxes (other than taxes on income) 2,835 Directors' fees 1,987 Insurance fees 1,344 Other 6,040 ________ Total operating expenses (before interest expense) 452,178 Interest expense 585,586 __________ Total expenses 1,037,764 __________ Net Investment Income 681,055 __________ Net Realized and Unrealized Gain on Investments and Foreign Currencies: Net realized gain on: Investments 3,489,508 Foreign currencies 102,281 __________ Net realized gain 3,591,789 Net change in unrealized appreciation/depreciation of investments and foreign currencies 2,158,158 __________ Net Realized and Unrealized Gain on Investments and Foreign Currencies 5,749,947 __________ Net Increase in Net Assets Resulting from Operations $6,431,002 __________ See accompanying notes
14 Statements of changes in net assets Delaware Investments Global Dividend and Income Fund, Inc. Six Months Ended Year 5/31/06 Ended (Unaudited) 11/30/05 Increase (Decrease) in Net Assets from Operations: Net investment income $ 681,055 $ 2,218,197 Net realized gain on investments and foreign currencies 3,591,789 14,865,212 Net change in unrealized appreciation/depreciation of investments and foreign currencies 2,158,158 (13,767,017) ___________ ____________ Net increase in net assets resulting from operations 6,431,002 3,316,392 __________ ____________ Dividends and Distributions to Shareholders from (See Note 4): Net investment income (2,311,165) (2,295,845) Net realized gains (9,326,614) (3,241,579) ___________ ____________ (11,637,779) (5,537,424) ___________ ____________ Capital Share Transactions: Cost of shares repurchased (see Note 5) - (7,018,700) ___________ ____________ - (7,018,700) ___________ ____________ Net Decrease in Net Assets (5,206,777) (9,239,732) Net Assets: Beginning of period 72,081,576 81,321,308 ___________ ____________ End of period (including undistributed net investment income of $16,577 and $232,005, respectively) $66,874,799 $ 72,081,576 ___________ ____________
See accompanying notes 15 Statement of cash flows Delaware Investments Global Dividend and Income Fund, Inc. Six Months Ended May 31, 2006 (Unaudited) Net Cash (Including Foreign Currency) Provided by Operating Activities: Net increase in net assets resulting from operations $ 6,431,002 ___________ Adjustments to reconcile net increase in net assets from operations to cash provided by operating activities Amortization of premium and discount on investments 60,382 Net proceeds from investment transactions 10,779,768 Net realized gain on investment transactions (3,489,508) Net realized gain on foreign currencies (102,281) Net change in unrealized appreciation/depreciation of investments and foreign currencies (2,158,158) Decrease in receivable for investments sold 657,780 Decrease in interest and dividends receivable and other assets 111,208 Decrease in payable for investments purchased (761,494) Increase in interest payable 18,451 Decrease in accrued expenses and other liabilities (23,786) ___________ Total adjustments 5,092,362 ___________ Net cash provided by operating activities 11,523,364 ___________ Cash flows used for financing activities: Cash dividends and distributions paid (11,637,779) ___________ Net cash used for financing activities (11,637,779) ___________ Effect of exchange rates on cash 219,901 ___________ Net increase in cash 105,486 Cash at beginning of period 60,742 ___________ Cash at end of period $ 166,228 ___________ Cash paid for interest $ 567,135 ___________
See accompanying notes 16 Financial highlights Delaware Investments Global Dividend and Income Fund, Inc. Selected data for each share of the Fund outstanding throughout each period were as follows: Six Months Ended Year Ended 5/31/06(1) ____________________________________________________ (Unaudited) 11/30/05 11/30/04 11/30/03 11/30/02(2) 11/30/01 ______________________________________________________________________________________________________________________________ Net asset value, beginning of period $13.190 $13.590 $11.980 $9.940 $11.170 $11.770 Income (loss) from investment operations: Net investment income(3) 0.125 0.384 0.416 0.554 0.499 0.620 Net realized and unrealized gain (loss) on investments and foreign currencies 1.055 0.176 2.154 2.570 (0.260) 0.280 _______ _______ _______ _______ _______ _______ Total from investment operations 1.180 0.560 2.570 3.124 0.239 0.900 _______ _______ _______ _______ _______ _______ Less dividends and distributions from: Net investment income (0.386) (0.398) (0.815) (0.918) (0.365) (0.195) Net realized gain on investments (1.744) (0.562) (0.145) - - (0.084) Return of capital - - - (0.166) (1.104) (1.221) _______ _______ _______ _______ _______ _______ Total dividends and distributions (2.130) (0.960) (0.960) (1.084) (1.469) (1.500) _______ _______ _______ _______ _______ _______ Net asset value, end of period $12.240 $13.190 $13.590 $11.980 $9.940 $11.170 _______ _______ _______ _______ _______ _______ Market value, end of period $12.380 $13.400 $12.300 $11.900 $10.400 $12.400 _______ _______ _______ _______ _______ _______ Total return based on:(4) Market value 7.58% 17.22% 12.01% 25.92% (5.49%) 34.52% Net asset value 8.05% 4.43% 22.92% 32.63% 0.28% 6.91% Ratios and supplemental data: Net assets, end of period (000 omitted) $66,875 $72,082 $81,321 $71,693 $59,523 $66,870 Ratio of expenses to average net assets 3.10% 2.59% 1.92% 2.04% 2.26% 3.31% Ratio of expenses to adjusted average net assets (before interest expense)(5) 1.01% 1.13% 0.98% 1.08% 1.06% 1.10% Ratio of interest expense to adjusted average net assets(5) 1.30% 0.87% 0.46% 0.46% 0.64% 1.35% Ratio of net investment income to average net assets 2.04% 2.84% 3.31% 5.14% 4.69% 5.18% Ratio of net investment income to adjusted average net assets(5) 1.49% 2.19% 2.48% 3.88% 3.53% 3.84% Portfolio turnover 85% 121% 78% 99% 69% 47% Leverage Analysis: Debt outstanding at end of period at par (000 omitted) $23,000 $23,000 $25,000 $21,000 $21,000 $ 25,000 Average daily balance of debt outstanding (000 omitted) $23,000 $24,195 $24,410 $21,000 $21,603 $ 25,000 Average daily balance of shares outstanding (000 omitted) 5,464 5,777 5,986 5,986 5,986 5,986 Average debt per share $4.21 $4.19 $4.08 $3.51 $3.61 $ 4.18 Asset coverage per $1,000 of debt outstanding at end of period $ 3,908 $ 4,134 $ 4,253 $ 4,414 $ 3,834 $ 3,675 ______________________________________________________________________________________________________________________________ (1)Ratios and portfolio turnover have been annualized and total return has not been annualized. (2)As required, effective December 1, 2001, the Fund adopted the provision of the AICPA Audit and Accounting Guide for Investment Companies that requires amortization of all premiums and discounts on debt securities. The effect of this change for the year ended November 30, 2002 was a decrease in net investment income per share of $0.024, an increase in net realized and unrealized gain (loss) per share of $0.024, a decrease in the ratio of net investment income to average net assets of 0.23%, and a decrease in the ratio of net investment income to adjusted net assets of 0.17%. Per share data for the periods prior to December 1, 2001 have not been restated to reflect this change in accounting. (3)The average shares outstanding method has been applied for per share information. (4)Total investment return is calculated assuming a purchase of common stock on the opening of the first day and a sale on the closing of the last day of each period reported. Dividends and distributions, if any, are assumed for the purpose of this calculation, to be reinvested at prices obtained under the Fund's dividend reinvestment plan. Generally, total investment return based on net asset value will be higher than total investment return based on market value in periods where there is an increase in the discount or decrease in the premium of the market value to the net asset value from the beginning to the end of such periods. Conversely, total investment return based on net asset value will be lower than total investment return based on market value in periods where there is a decrease in the discount or an increase in the premium of the market value to the net asset value from the beginning to the end of such periods. (5)Adjusted average net assets excludes debt outstanding. See accompanying notes
17 Notes to financial statements Delaware Investments Global Dividend and Income Fund, Inc. May 31, 2006 (Unaudited) Delaware Investments Global Dividend and Income Fund, Inc. (the "Fund") is organized as a Maryland corporation and is a diversified closed-end management investment company under the Investment Company Act of 1940, as amended. The Fund's shares trade on the New York Stock Exchange under the symbol DGF. The investment objective of the Fund is to seek high current income. Capital appreciation is a secondary objective. 1. Significant Accounting Policies The following accounting policies are in accordance with U.S. generally accepted accounting principles and are consistently followed by the Fund. Security Valuation - Equity securities, except those traded on the Nasdaq Stock Market, Inc. (Nasdaq), are valued at the last quoted sales price as of time of the regular close of the New York Stock Exchange (NYSE) on the valuation date. Securities traded on the Nasdaq are valued in accordance with the Nasdaq Official Closing Price, which may not be the last sales price. If on a particular day an equity security does not trade, then the mean between the bid and asked prices will be used. Securities listed on a foreign exchange are valued at the last quoted sales price before the Fund is valued. U.S. Government and agency securities are valued at the mean between the bid and asked prices. Other long-term debt securities are valued by an independent pricing service and such prices are believed to reflect the fair value of such securities. Short-term debt securities having less than 60 days to maturity are valued at amortized cost, which approximates market value. Securities lending collateral is valued at amortized cost, which approximates market value. Forward foreign currency exchange contracts and forward foreign cross currency exchange contracts are valued at the mean between the bid and asked prices of the contracts and are marked-to-market daily. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available. Other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of the Fund's Board of Directors. In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures or, with respect to foreign securities, aftermarket trading or significant events after local market trading (e.g., government actions or pronouncements, trading volume or volatility on markets, exchanges among dealers, or news events). Federal Income Taxes - The Fund intends to continue to qualify for federal income tax purposes as a regulated investment company and make the requisite distributions to shareholders. Accordingly, no provision for federal income taxes has been made in the financial statements. Distributions - The Fund has a managed distribution policy. Under the policy, the Fund declares and pays monthly distributions and is managed with a goal of generating as much of the distribution as possible from ordinary income (net investment income and short-term capital gains). The balance of the distribution then comes from long-term capital gains and, if necessary, a return of capital. The current annualized rate is $0.96 per share. The Fund continues to evaluate its monthly distribution in light of ongoing economic and market conditions and may change the amount of the monthly distributions in the future. Foreign Currency Transactions - Transactions denominated in foreign currencies are recorded at the prevailing exchange rates on the valuation date. The values of all assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of such currencies against the U.S. dollar daily. Transaction gains or losses resulting from changes in exchange rates during the reporting period or upon settlement of the foreign currency transaction are reported in operations for the current period. The Fund isolates that portion of realized gains and losses on investments in debt securities, which are due to changes in the foreign exchange rates, from that which are due to changes in market prices of debt securities. For foreign equity securities, these changes are included in realized gains (losses) on investments. The Fund reports certain foreign currency related transactions as components of realized gains (losses) for financial reporting purposes, where such components are treated as ordinary income (loss) for federal income tax purposes. Repurchase Agreements - The Fund may invest in a pooled cash account along with other members of the Delaware Investments (R) Family of Funds pursuant to an exemptive order issued by the Securities and Exchange Commission. The aggregate daily balance of the pooled cash account is invested in repurchase agreements secured by obligations of the U.S. government. The respective collateral is held by the Fund's custodian bank until the maturity of the respective repurchase agreements. Each repurchase agreement is 102% collateralized. However, in the event of default or bankruptcy by the counterparty to the agreement, realization of the collateral may be subject to legal proceedings. Use of Estimates - The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Other - Expenses common to all funds within the Delaware Investments Family of Funds are allocated amongst the funds on the basis of average net assets. Management fees and some other expenses are paid monthly. Security transactions are recorded on the date the securities are purchased or sold (trade date) for financial reporting purposes. Costs used in calculating realized gains and losses on the sale of investment securities are those of the specific securities sold. Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis. Discounts and premiums on non-convertible securities are amortized to interest income over the lives of the respective securities. Distributions received from investments in Real Estate Investment Trusts are recorded as dividend income on ex-dividend date, subject to reclassification upon notice of the character of such distribution by the issuer. Foreign dividends are also recorded on the ex-dividend date or as soon after the ex-dividend date that the Fund is aware of such dividends, net of all non-rebatable tax withholdings. 18 1. Significant Accounting Policies (continued) Withholding taxes on foreign dividends have been recorded in accordance with the Fund's understanding of the applicable country's tax rules and rates. Subject to seeking best execution, the Fund may direct certain security trades to brokers who have agreed to rebate a portion of the related brokerage commission to the Fund in cash. Such commission rebates are included in realized gain on securities in the accompanying financial statements and totaled $381 for the six months ended May 31, 2006. In general, best execution refers to many factors, including the price paid or received for a security, the commission charged, the promptness and reliability of execution, the confidentiality and placement accorded the order, and other factors affecting the overall benefit obtained by the Fund on the transaction. DMC, as defined below, and its affiliates have previously and may in the future act as an investment advisor to mutual funds or separate accounts affiliated with the administrator of the commission recapture program described above. In addition, affiliates of the administrator act as consultants in helping institutional clients choose investment advisors and may also participate in other types of businesses and provide other services in the investment management industry. 2. Investment Management, Administration Agreements and Other Transactions with Affiliates In accordance with the terms of its investment management agreement, the Fund pays Delaware Management Company (DMC), a series of Delaware Management Business Trust and the investment manager, an annual fee of 0.70%, which is calculated daily based on the adjusted average weekly net assets. Adjusted average weekly net assets does not include the line of credit liability. Delaware Service Company, Inc. (DSC), an affiliate of DMC, provides accounting and administration services. The Fund pays DSC a monthly fee computed at the annual rate of 0.04% of the Fund's adjusted average weekly net assets for accounting and administration services At May 31, 2006, the Fund had liabilities payable to affiliates as follows: Investment management fee payable to DMC $53,239 Accounting and administration fees and other expenses payable to DSC 10,876 Other expenses payable to DMC and affiliates* 10,611
*DMC, as part of its administrative services, pays operating expenses on behalf of the Fund and is reimbursed on a periodic basis. Such expenses include items such as printing of shareholder reports, fees for audit, legal and tax services, stock exchange fees, custodian fees and directors fees. As provided in the investment management agreement, the Fund bears the cost of certain legal services, including internal legal services provided to the Fund by DMC employees. For the six months ended May 31, 2006, the Fund was charged $1,394 for internal legal services provided by DMC. Certain officers of DMC and DSC are officers and/or directors of the Fund. These officers and trustees are paid no compensation by the Fund. During the six months ended May 31, 2006, Babak Zenouzi was appointed co-portfolio manager of the Fund. Mr. Zenouzi assumed primary responsibility for managing the REIT and convertible securities holdings for the Fund, and consults regularly with Damon J. Andres in this capacity. Mr. Zenouzi works with Mr. Andres, D. Tysen Nutt, Jr., Jordan L. Irving, Anthony A. Lombardi, Robert A. Vogel, Jr., Zoe Neale, Edward Gray, Philip R. Perkins and Timothy L. Rabe in making day-to-day decisions for the Fund. 3. Investments For the six months ended May 31 2006, the Fund made purchases of $36,222,569 and sales of $40,965,635 of investment securities other than U.S. government securities and short-term investments. For the six months ended May 31, 2006, the Fund made purchases of $988,475 and sales of $2,089,538 of long-term U.S. government securities. At May 31, 2006, the cost of investments for federal income tax purposes has been estimated since the final tax characteristics cannot be determined until fiscal year end. At May 31, 2006, the cost of investments was $98,799,097. At May 31, 2006, the net unrealized appreciation was $6,248,532, of which $8,585,540 related to unrealized appreciation of investments and $2,337,008 related to unrealized depreciation of investments. 4. Dividend and Distribution Information Income and long-term capital gain distributions are determined in accordance with federal income tax regulations, which may differ from U.S. generally accepted accounting principles. Additionally, gains (losses) on foreign currency transactions and net short-term gains on sales of investment securities are treated as ordinary income for federal income tax purposes. The tax character of dividends and distributions paid during the six months ended May 31, 2006 and the year ended November 30, 2005 was as follows: Six Months Year Ended Ended 5/31/06* 11/30/05 ____________ __________ Ordinary income $ 2,234,871 $2,295,845 Long-term capital gain 9,402,908 3,241,579 ____________ __________ Total $ 11,637,779 $5,537,424 ____________ __________ *Tax information for the period ended May 31, 2006 is an estimate and the tax character of dividends and distributions may be redesignated at fiscal year end.
The components of net assets are estimated since final tax characteristics cannot be determined until fiscal year end. As of May 31, 2006, the estimated components of net assets on a tax basis were as follows: Shares of beneficial interest $58,693,534 Six month period realized gain 1,911,180 Unrealized appreciation of investments and foreign currencies 6,270,085 ___________ Net assets $66,874,799 ___________
(continues) 19 Notes to financial statements Delaware Investments Global Dividend and Income Fund, Inc. May 31, 2006 (Unaudited) 4. Dividend and Distribution Information (continued) The differences between book basis and tax basis components of net assets are primarily attributable to tax deferral of losses on wash sales, mark-to-market on futures contracts and forward foreign currency contracts, and tax treatment of market discount and premium on debt instruments and treatment of contingent payment debt instruments. For financial reporting purposes, capital accounts are adjusted to reflect the tax character of permanent book/tax differences. Reclassifications are primarily due to gain (loss) on foreign currency transactions, REIT dividend reclassification and market discounts and premiums on certain debt instruments. Results of operations and net assets were not affected by these reclassifications. For the six months ended May 31, 2006, the Fund recorded an estimate of these differences since the final tax characteristics cannot be determined until fiscal year end. Undistributed net investment income $ 1,641,584 Accumulated net realized gain (loss) (1,641,584)
5. Capital Stock Shares issuable under the Fund's dividend reinvestment plan are purchased by the Fund's transfer agent, Mellon Investor Services, LLC, in the open market For the six months ended May 31, 2006, the Fund did not have any transactions in common shares. The Fund did not repurchase any shares under the Share Repurchase Program during the six months ended May 31, 2006. 6. Line of Credit The Fund has entered into a Line of Credit Agreement with JPMorgan Chase for $25,000,000 that expires on January 18, 2007. At May 31, 2006, the par value of loans outstanding was $23,000,000 at a variable interest rate of 5.58%. During the six months ended May 31, 2006, the average daily balance of loans outstanding was $23,000,000 at a weighted average interest rate of approximately 5.04%. The maximum amount of loans outstanding at any time during the period was $23,000,000. Interest on borrowings is based on market rates in effect at the time of borrowing. The commitment fee is computed at a rate of 0.12% per annum on the unused balance. The loan is collateralized by the Fund's portfolio. 7. Foreign Exchange Contracts The Fund may enter into forward foreign currency exchange contracts and forward foreign cross-currency exchange contracts as a way of managing foreign exchange rate risk. The Fund may enter into these contracts to fix the U.S. dollar value of a security that it has agreed to buy or sell for the period between the date the trade was entered into and the date the security is delivered and paid for. The Fund may also use these contracts to hedge the U.S. dollar value of securities it already owns that are denominated in foreign currencies. The change in market value is recorded as an unrealized gain or loss. When the contract is closed, a realized gain or loss is recorded equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The use of forward foreign currency exchange contracts and forward foreign cross-currency exchange contracts does not eliminate fluctuations in the underlying prices of the securities, but does establish a rate of exchange that can be achieved in the future. Although forward foreign currency exchange contracts limit the risk of loss due to a decline in the value of the hedged currency, they also limit any potential gain that might result should the value of the currency increase. In addition, the Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts. 8. Securities Lending The Fund, along with other funds in the Delaware Investments (R) Family of Funds, may lend its securities pursuant to a security lending agreement (Lending Agreement) with JPMorgan Chase. Initial security loans made pursuant to the Lending Agreement are required to be secured by U.S. Treasury obligations and/or cash collateral not less than 102% of the market value of the securities issued in the United States and 105% of the market value of the securities issued outside the United States. With respect to each loan, if the aggregate market value of the collateral held on any business day is less than the aggregate market value of the securities which are the subject of such loan, the borrower will be notified to provide additional collateral not less than the applicable collateral requirements. Cash collateral received is invested in fixed-income securities, with a weighted average maturity not to exceed 90 days, rated in one of the top two tiers by Standard & Poor's Ratings Group or Moody's Investors Service, Inc. or repurchase agreements collateralized by such securities. However, in the event of default or bankruptcy by the lending agent, realization and/or retention of the collateral may be subject to legal proceedings. In the event the borrower fails to return loaned securities and the collateral received is insufficient to cover the value of the loaned securities and provided such collateral shortfall is not the result of investment losses, the lending agent has agreed to pay the amount of the shortfall to the Fund or, at the discretion of the lending agent, replace the loaned securities. The Fund continues to record dividends on the securities loaned and is subject to change in value of the securities loaned that may occur during the term of the loan. The Fund has the right under the Lending Agreement to recover the securities from the borrower on demand. The security lending agent and the borrower retain a portion of the earnings from the collateral investments. The Fund records security lending income net of such allocation. At May 31, 2006, the market value of the securities on loan was $14,898,604, for which cash collateral was received and invested in accordance with the Lending Agreement. Such investments are presented on the Statement of Net Assets under the caption "Securities Lending Collateral." 9. Credit and Market Risk Some countries in which the Fund may invest require governmental approval for the repatriation of investment income, capital or the proceeds of sales of securities by foreign investors. In addition, if there is deterioration in a country's balance of payments or for other reasons, a country may impose temporary restrictions on foreign capital remittances abroad. 20 The securities exchanges of certain foreign markets are substantially smaller, less liquid and more volatile than the major securities markets in the United States. Consequently, acquisition and disposition of securities by the Fund may be inhibited. In addition, a significant portion of the aggregate market value of equity securities listed on the major securities exchanges in emerging markets is held by a smaller number of investors. This may limit the number of shares available for acquisition or disposition by the Fund. The Fund invests a portion of its assets in high yield fixed income securities, which carry ratings of BB or lower by Standard & Poor's Ratings Group and/or Ba or lower by Moody's Investors Service, Inc. Investments in these higher yielding securities are generally accompanied by a greater degree of credit risk than higher rated securities. Additionally, lower rated securities may be more susceptible to adverse economic and competitive industry conditions than investment grade securities. The Fund may invest up to 10% of its total assets in illiquid securities, which may include securities with contractual restrictions on resale, securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and other securities which may not be readily marketable. The relative illiquidity of these securities may impair the Fund from disposing of them in a timely manner and at a fair price when it is necessary or desirable to do so. While maintaining oversight, the Fund's Board of Trustees has delegated to DMC the day-to-day functions of determining whether individual securities are liquid for purposes of the Fund's limitation on investments in illiquid assets. Rule 144A and illiquid securities have been identified on the Statement of Net Assets. The Fund invests in real estate investment trusts (REITs) and is subject to some of the risks associated with that industry. If the Fund holds real estate directly as a result of defaults or receives rental income directly from real estate holdings, its tax status as a regulated investment company may be jeopardized. The Fund's REIT holdings are also affected by interest rate changes, particularly if the REITs it holds use floating rate debt to finance their ongoing operations. There were no direct holdings during the six months ended May 31, 2006. 10. Contractual Obligations The Fund enters into contracts in the normal course of business that contain a variety of indemnifications. The Fund's maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these contracts. Management has reviewed the Fund's existing contracts and expects the risk of loss to be remote. 21 Other Fund information Delaware Investments Global Dividend and Income Fund, Inc. Board consideration of Delaware Investments Global Dividend and Income Fund, Inc. investment advisory agreement At a meeting held on May 17-18, 2006 (the "Annual Meeting"), the Board of Directors, including a majority of disinterested or independent Directors, approved the renewal of the Investment Advisory Agreement for the Delaware Investments Global Dividend and Income Fund, Inc. (the "Fund"). In making its decision, the Board considered information furnished throughout the year at regular Board meetings, as well as information prepared specifically in connection with the Annual Meeting. Information furnished and discussed throughout the year included reports detailing Fund performance, investment strategies, expenses, compliance matters and other services provided by Delaware Management Company ("DMC"), the investment advisor. Information furnished specifically in connection with the Annual Meeting included materials provided by DMC and its affiliates ("Delaware Investments") concerning, among other things, the level of services provided to the Fund, the costs of such services to the Fund, economies of scale and the financial condition and profitability of Delaware Investments. In addition, in connection with the Annual Meeting, the Board considered independent historical and comparative reports prepared by Lipper Inc. ("Lipper"), an independent statistical compilation organization. The Board also considered industry comparative information presented by representatives from Lipper. The Lipper reports compared the Fund's investment performance and expenses with those of other comparable mutual funds. The Board also received certain supplemental information regarding management's policy with respect to advisory fee levels and its philosophy with respect to breakpoints; the structure of portfolio manager compensation; and any constraints or limitations on the availability of securities in certain investment styles which might inhibit DMC's ability to fully invest in accordance with Fund policies. In considering such materials, the independent Directors received assistance and advice from and met separately with independent counsel and representatives from Lipper. At the meeting with representatives from Lipper, Mr. Driscoll, Chairman of the Delaware Investments (R) Family of Funds, and Chairman and Chief Executive Officer of the investment advisor, was present to respond to questions by Lipper and the independent Directors. While the Board considered the Investment Advisory Agreements for all of the funds in the Delaware Investments Family of Funds at the same Board meeting, information was provided and considered by the Board for each fund individually. In approving the continuance of the Investment Advisory Agreement for the Fund, the Board, including a majority of independent Directors, determined that the existing advisory fee structure was fair and reasonable and that the continuance of the Investment Advisory Agreement was in the best interests of the Fund and its shareholders. While attention was given to all information furnished, the following discusses the primary factors relevant to the Board's deliberations and determination, including those relating to the selection of the investment advisor and the approval of the advisory fee. NATURE, EXTENT AND QUALITY OF SERVICE. Consideration was given to the services provided by Delaware Investments to the Fund and its shareholders. In reviewing the nature, extent and quality of services, the Board emphasized reports furnished to it throughout the year at regular Board meetings covering matters such as the relative performance of the Fund, compliance of portfolio managers with the investment policies, strategies and restrictions for the Fund, the compliance of management personnel with the Code of Ethics adopted throughout the Delaware Investments Family of Funds complex, the adherence to fair value pricing procedures as established by the Board, and the accuracy of net asset value calculations. The Board noted that it was pleased with the current staffing of the Fund's investment advisor and management's efforts to strengthen and deepen portfolio management teams during the past year, the emphasis on research and the compensation system for advisory personnel. Favorable consideration was given to DMC's efforts to maintain, and in some instances increase, financial and human resources committed to fund matters. Other factors taken into account by the Board were Delaware Investments' preparedness for, and response to, legal and regulatory matters. The Board was satisfied with the nature, extent and quality of the overall services provided by Delaware Investments. INVESTMENT PERFORMANCE. The Board considered the investment performance of DMC and the Fund. The Board was pleased with DMC's investment performance. The Board placed significant emphasis on the investment performance of the Fund in view of its importance to shareholders. While consideration was given to performance reports and discussions with portfolio managers at Board meetings throughout the year, particular weight was given to the Lipper reports furnished for the Annual Meeting. The Lipper reports prepared for the Fund showed the investment performance of its shares in comparison to a group of similar funds as selected by Lipper (the "Performance Universe"). A fund with the best performance is ranked first, and a fund with the poorest performance is ranked last. The highest/best performing 25% of funds in the Performance Universe make up the first quartile; the next 25% - the second quartile; the next 25% - the third quartile; and the poorest/worst performing 25% of funds in the Performance Universe make up the fourth quartile. Comparative annualized performance for the Fund was shown for the past one, three, five and 10-year periods, ended January 31, 2006. The Board noted its objective that the Fund's performance be at or above the median of its Performance Universe. The following paragraph summarizes the performance results for the Fund and the Board's view of such performance. The Performance Universe for the Fund consisted of the Fund and all leveraged closed-end income and preferred stock funds as selected by Lipper. The Lipper report comparison showed that the Fund's total return for the one year period was in the second quartile. The report further showed that the Fund's total return for the three, five and 10 year periods was in the first quartile of such Performance Universe. The Board was satisfied with such performance. COMPARATIVE EXPENSES. The Board considered expense data for the Delaware Investments Family of Funds. Management provided the Board with information on pricing levels and fee structures for the Funds. The Board focused particularly on the comparative analysis of the management fees and total expense ratios of the Fund and the management fees and expense ratios of a group of similar leveraged closed-end funds as selected by Lipper (the "Expense Group"). In reviewing comparative costs, the Fund's contractual management fee and the actual management fee incurred by the Fund were compared with the contractual management fees (assuming all funds in the Expense Group were similar in size to the Fund) and actual management fees (as reported by each fund) of other funds within the Expense Group, taking into effect any applicable breakpoints and fee waivers. The Fund's total expenses were also compared with those of its Expense Group. The Board also considered fees paid to Delaware Investments for non-management services. The Board noted its objective to limit the Fund's total expense ratio to an acceptable range as compared to the median of the Expense Group. The following paragraph summarizes the expense results for the Fund and the Board's view of such expenses. 22 The expense comparisons for the Fund showed that its actual management fee and total expenses were in the quartile with the lowest expenses of its Expense Group. The Board was satisfied with the management fees and total expenses of the Fund in comparison to its Expense Group as shown in the Lipper report. MANAGEMENT PROFITABILITY. The Board considered the level of profits, if any, realized by Delaware Investments in connection with the operation of the Fund. In this respect, the Board reviewed the Investment Management Profitability Analysis that addressed the overall profitability of Delaware Investments' business in providing management and other services to each of the individual funds and the Delaware Investments (R) Family of Funds as a whole. Specific attention was given to the methodology followed in allocating costs for the purpose of determining profitability. Management stated that the level of profits of Delaware Investments, to a certain extent, reflected operational cost savings and efficiencies initiated by Delaware Investments. The Board considered Delaware Investments' expenditures to improve services provided to fund shareholders and to meet additional regulatory and compliance requirements resulting from recent SEC initiatives. The Board also considered the extent to which Delaware Investments might derive ancillary benefits from fund operations, including the potential for procuring additional business as a result of the prestige and visibility associated with its role as service provider to the Delaware Investments Family of Funds, the benefits from allocation of fund brokerage to improve trading efficiencies and the use of "soft" commission dollars to pay for proprietary and non-proprietary research. The Board did not find that the level of profits realized by Delaware Investments from the relationships with the Fund and the Delaware Investments Family of Funds required negotiation of reduction of fees. ECONOMIES OF SCALE. As a closed-end fund, the Fund does not issue shares on a continuous basis. Fund assets increase only to the extent that the value of the underlying securities in the Fund increase. Accordingly, the Board determined that the Fund was not likely to experience significant economies of scale due to asset growth and, therefore, a fee schedule with breakpoints to pass the benefit of such economies of scale on to shareholders was not likely to provide the intended effect. 23 About the organization This semiannual report is for the information of Delaware Investments Global Dividend and Income Fund, Inc. shareholders. The figures in this report represent past results that are not a guarantee of future results. The return and principal value of an investment in the Fund will fluctuate so that shares, when sold, may be worth more or less than their original cost. Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940 that the Fund may, from time to time, purchase shares of its Common Stock on the open market at market prices. Board of trustees Jude T. Driscoll Chairman Delaware Investments(R) Family of Funds Philadelphia, PA Thomas L. Bennett + Private Investor Rosemont, PA John A. Fry President Franklin & Marshall College Lancaster, PA Anthony D. Knerr Founder and Managing Director Anthony Knerr & Associates New York, NY Lucinda S. Landreth Former Chief Investment Officer Assurant, Inc. Philadelphia, PA Ann R. Leven Owner - ARL Associates, Financial and Strategic Consultants Washington, DC Thomas F. Madison + President and Chief Executive Officer MLM Partners, Inc. Minneapolis, MN Janet L. Yeomans + Vice President and Treasurer 3M Corporation St. Paul, MN J. Richard Zecher + Founder Investor Analytics Scottsdale, AZ + Audit Committee Member Affiliated officers Michael P. Bishof Senior Vice President and Chief Financial Officer Delaware Investments Family of Funds Philadelphia, PA David F. Connor Vice President, Deputy General Counsel, and Secretary Delaware Investments Family of Funds Philadelphia, PA David P. O'Connor Senior Vice President, General Counsel, and Chief Legal Officer Delaware Investments Family of Funds Philadelphia, PA John J. O'Connor Senior Vice President and Treasurer Delaware Investments Family of Funds Philadelphia, PA Contact information Investment manager Delaware Management Company, a series of Delaware Management Business Trust Philadelphia, PA Principal Office of the Fund 2005 Market Street Philadelphia, PA 19103 Independent Registered Public Accounting Firm Ernst & Young LLP 2001 Market Street Philadelphia, PA 19103 Registrant and Stock Transfer Agent Mellon Investor Services, LLC 480 Washington Boulevard Jersey City, NJ 07310 800 851-9677 For securities dealers and financial institutions representatives only 800 362-7500 Web site www.delawareinvestments.com Delaware Investments is the marketing name of Delaware Management Holdings, Inc. and its subsidiaries. The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Fund's Forms N-Q, as well as a description of the policies and procedures that the Fund uses to determine how to vote proxies (if any) relating to portfolio securities are available without charge (i) upon request, by calling 800 523-1918; (ii) on the Fund's Web site at http://www.delawareinvestments.com; and (iii) on the Commission's Web site at http://www.sec.gov. The Fund's Forms N-Q may be reviewed and copied at the Commission's Public Reference Room in Washington, D.C.; information on the operation of the Public Reference Room may be obtained by calling 800 SEC-0330. Information (if any) regarding how the Fund voted proxies relating to portfolio securities during the most recently disclosed 12-month period ended June 30 is available without charge (i) through the Fund's Web site at http://www.delawareinvestments.com; and (ii) on the Commission's Web site at http://www.sec.gov. Your Reinvestment Options Delaware Investments Global Dividend and Income Fund, Inc. offers an automatic dividend reinvestment program. If you would like to reinvest dividends, and shares are registered in your name, contact Mellon Investor Services, LLC at 800 851-9677. You will be asked to put your request in writing. If you have shares registered in "street" name, contact the broker/dealer holding the shares or your financial advisor. 24 [DELAWARE LOGO] [NYSE DGF LOGO] (573) Printed in the USA SA-DGF [5/06] CGI 7/06 MF-06-06-037 PO11117 Item 2. Code of Ethics Not applicable. Item 3. Audit Committee Financial Expert Not applicable. Item 4. Principal Accountant Fees and Services Not applicable. Item 5. Audit Committee of Listed Registrants Not applicable. Item 6. Schedule of Investments Included as part of report to shareholders filed under Item 1 of this Form N-CSR. Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies Not applicable. Item 8. Portfolio Managers of Closed-End Management Investment Companies Applicable to Form N-CSRs filed after fiscal years ending on or after December 31, 2005. Not applicable. Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers Not applicable. Item 10. Submission of Matters to a Vote of Security Holders Not applicable. Item 11. Controls and Procedures The registrant's principal executive officer and principal financial officer have evaluated the registrant's disclosure controls and procedures within 90 days of the filing of this report and have concluded that they are effective in providing reasonable assurance that the information required to be disclosed by the registrant in its reports or statements filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission. There were no significant changes in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by the report to stockholders included herein (i.e., the registrant's second fiscal quarter) that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 12. Exhibits (a) (1) Code of Ethics Not applicable. (2) Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Rule 30a-2 under the Investment Company Act of 1940 are attached hereto as Exhibit 99.CERT. (3) Written solicitations to purchase securities pursuant to Rule 23c-1 under the Securities Exchange Act of 1934. Not applicable. (b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are furnished herewith as Exhibit 99.906CERT. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf, by the undersigned, thereunto duly authorized. Name of Registrant: Delaware Investments Global Dividend and Income Fund, Inc. PATRICK P. COYNE ______________________________ By: Patrick P. Coyne Title: President and Chief Executive Officer Date: August 3, 2006 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. PATRICK P. COYNE ______________________________ By: Patrick P. Coyne Title: President and Chief Executive Officer Date: August 3, 2006 MICHAEL P. BISHOF ______________________________ By: Michael P. Bishof Title: Chief Financial Officer Date: August 3, 2006