N-Q 1 diglobaldiv_nq.htm QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number:  811-08246 
 
Exact name of registrant as specified in charter:  Delaware Investments® Global 
  Dividend and Income Fund, Inc. 
  
Address of principal executive offices:  2005 Market Street 
  Philadelphia, PA 19103 
 
Name and address of agent for service:  David F. Connor, Esq. 
  2005 Market Street 
  Philadelphia, PA 19103 
 
Registrant’s telephone number, including area code:  (800) 523-1918 
 
Date of fiscal year end:  November 30 
 
Date of reporting period:  February 28, 2009 

Item 1. Schedule of Investments.

Schedule of Investments (Unaudited)

Delaware Investments® Global Dividend and Income Fund, Inc.

February 28, 2009

  Number of Value
Shares              (U.S. $)
Common Stock – 62.68%v
Consumer Discretionary – 6.25%
=†PAvado Brands 272 $ 0
±Bayerische Motoren Werke 5,376 132,963
†Cablevision Systems 150 1,949
±Don Quijote 8,400 99,115
Gap 24,800 267,592
Mattel 20,600 243,904
±*NGK Spark Plug 8,000 61,909
±*PPR 867 51,372
±*Publicis Groupe 5,043   116,717
±Round One 13,901 80,656
±Techtronic Industries 305,000 109,461
†Time Warner Cable Class A 2 36
±Toyota Motor 4,321 138,414
±Vivendi 6,236 148,243
±*WPP Group 21,438   111,215
    1,563,546
Consumer Staples – 8.68%
Archer-Daniels-Midland 10,800 287,928
±Coca-Cola Amatil 52,485 299,551
CVS Caremark 8,800 226,512
±Greggs 2,423 126,730
Heinz (H.J.) 6,200 202,554
*Kimberly-Clark 4,400 207,284
Kraft Foods Class A 9,500 216,410
±Metro 4,760 137,410
±Parmalat 121,774 224,661
Safeway 13,100 242,350
2,171,390
Diversified REITs – 0.65%
*Digital Realty Trust 1,200 35,868
Duke Realty 1,700 11,730
*Liberty Property Trust 2,800 51,156
Vornado Realty Trust 1,670 54,659
*Washington Real Estate Investment Trust 575 9,861
163,274
Energy – 5.82%
±BP 51,783 329,876
Chevron 3,900 236,769
ConocoPhillips 5,800 216,630
Marathon Oil 11,400 265,278
±*Total 5,972 280,541
†Transocean 2,100 125,517
1,454,611
Financials – 4.73%
Allstate 13,100 220,473
±*AXA 8,522 77,671
Bank of New York Mellon 9,700 215,049
†Cardtronics 1,450 2,030
±Mitsubishi UFJ Financial Group 49,239 222,466
±Nordea Bank FDR 22,723 111,755


±Standard Chartered 9,461             89,157
Travelers 6,800 245,820
1,184,421
Health Care – 10.39%
±AstraZeneca 4,217 133,719
Bristol-Myers Squibb 12,200 224,602
Cardinal Health 8,300 269,335
Johnson & Johnson 4,200 210,000
Merck 10,000 242,000
±*Novartis 5,655 206,313
±Novo-Nordisk Class B 4,211 205,036
±Ono Pharmaceutical 3,000   138,889
Pfizer 16,300 200,653
Quest Diagnostics 6,300 288,729
±Sanofi-Aventis 3,475 178,584
Wyeth 7,400 302,067
2,599,927
Health Care REITs – 0.62%
*HCP 2,400 43,848
*Health Care REIT 1,975 60,771
Ventas 2,325 50,150
154,769
Hotel REITs – 0.13%
Hersha Hospitality Trust 5,450 9,810
Host Hotels & Resorts 5,950 22,015
31,825
Industrial REITs – 0.10%
AMB Property 1,785 21,259
ProLogis 800 4,632
25,891
Industrials – 5.07%
±Asahi Glass 17,000 73,528
†BWAY Holding 470 2,952
±*Cie de Saint-Gobain 3,880 88,501
±Deutsche Post 19,616 187,630
†Flextronics International 950 1,957
†Graphic Packaging Holding 2,829 2,263
Grupo Aeroportuario del Centro Norte ADR 1,200 8,628
±Koninklijke Philips Electronics 10,507 167,979
=†PPort Townsend 100 1
±Singapore Airlines 17,550 114,352
±Teleperformance 8,149 224,072
±Tomkins 74,333 119,414
±Vallourec 760 59,147
*Waste Management 8,100 218,700
1,269,124
Information Technology – 7.78%
±Canon 6,700 169,106
†CGI Group Class A 38,845 283,975
±Ericsson LM Class B 27,000 218,673
Intel 19,300 245,882
International Business Machines 3,300 303,699
Motorola 61,400 216,128
±Nokia 15,394 144,231
±Samsung Electronics 550 169,161
Xerox 37,500 194,250
1,945,105
Mall REITs – 0.46%
*Macerich 2,140 24,439
*Simon Property Group 2,700 89,370
113,809


Materials – 2.16%            
Agrium 4,700 163,466
duPont (E.I.) deNemours 10,500 196,981
Innophos Holdings 250 2,655
±*†Lafarge 856 36,672
±Linde 2,177 139,882
  539,656
Mortgage REIT – 0.08%
Annaly Capital Management 1,500 20,850
  20,850
Multifamily REITs – 0.46%
*Apartment Investment & Management 2,932 15,305
*BRE Properties Class A 1,000 18,920
Camden Property Trust 1,440 27,058
Equity Residential 2,400 42,240
*Essex Property Trust 200 10,878
  114,401
Office REITs – 0.90%  
*Alexandria Real Estate Equities 700 27,972
BioMed Realty Trust 800 6,824
Boston Properties 700 25,963
*Corporate Office Properties 750 18,750
*Highwoods Properties 1,800 34,002
*Kilroy Realty 800 14,888
Mack-Cali Realty 5,700 97,356
  225,755
Self-Storage REIT – 0.23%
Public Storage 1,050 58,254
  58,254
Shopping Center REITs – 0.31%
Developers Diversified Realty 300 885
*Kimco Realty 6,400 56,640
Kite Realty Group Trust 3,100 10,664
Ramco-Gershenson Properties 1,700 8,772
  76,961
Specialty REITs – 0.38%
*Entertainment Properties Trust 500 7,455
*Plum Creek Timber 1,820 47,739
*Potlatch 1,730 39,392
  94,586
Telecommunications – 5.38%
AT&T 9,600 228,192
†Century Communications 125,000 0
†Chunghwa Telecom ADR 17,203 264,066
±†France Telecom 8,844 197,620
±Telstra 82,352 185,608
*Verizon Communications 8,900 253,917
±Vodafone Group 122,286 216,747
  1,346,150
Utilities – 2.10%
Entergy 1 34
*†Mirant 53 648
±National Grid 32,141 286,086
*†NRG Energy 250 4,725
Progress Energy 6,600 233,772
  525,265
Total Common Stock (cost $25,233,824) 15,679,570
 
Convertible Preferred Stock – 2.61%
Banking, Finance & Insurance – 0.54%
Aspen Insurance Holdings 5.625% exercise price $29.28, expiration date 12/31/49 3,400 133,875
Fannie Mae 8.75% exercise price $32.45, expiration date 5/13/11 1,500 975
134,850


Cable, Media & Publishing – 0.18%                        
#Interpublic Group 144A 5.25% exercise price $13.66, expiration date 12/31/49 140 44,485
   44,485
Energy – 0.52%
*Chesapeake Energy 4.50% exercise price $44.15, expiration date 12/31/49 1,275 74,428
El Paso Energy Capital Trust I 4.75% exercise price $41.59, expiration date 3/31/28 1,950 54,600
   129,028
Health Care & Pharmaceuticals – 0.89%
Inverness Medical Innovations Series B exercise price $69.32, expiration date 12/31/49 400 57,408
Mylan 6.50% exercise price $17.08, expiration date 11/15/10 100 81,089
Schering-Plough 6.00% exercise price $33.69, expiration date 8/13/10 500   84,812
  223,309
Metals & Mining – 0.15%
Freeport-McMoRan Copper & Gold 6.75% exercise price $73.24, expiration date 5/1/10 700 37,888
  37,888
Telecommunications – 0.33%
Crown Castle International 6.25% exercise price $36.88, expiration date 8/15/12 1,150 50,169
Lucent Technologies Capital Trust I 7.75% exercise price $24.80, expiration date 3/15/17 120 32,430
    82,599
Total Convertible Preferred Stock (cost $1,133,686) 652,159
 
Preferred Stock – 1.06%
Banking, Finance & Insurance – 0.21%
·JPMorgan Chase 7.90% 65,000 44,939
#Preferred Blocker 144A 7.00% 38 6,491
  51,430
Industrial – 0.00%
@=Port Townsend 20   0
  0
Leisure, Lodging & Entertainment – 0.16%
*Red Lion Hotels Capital Trust 9.50% 3,226 39,519
  39,519
Real Estate – 0.69%
SL Green Realty 7.625% 17,600 167,199
W2007 Grace Acquisitions I 8.75% 10,000 6,000
  173,199
Total Preferred Stock (cost $855,671) 264,148
    
Principal
Amount°
Agency Mortgage-Backed Security – 1.12%
Fannie Mae S.F. 30 yr TBA 4.50% 3/1/39 USD   280,000 280,525
Total Agency Mortgage-Backed Security (cost $281,116) 280,525
 
Convertible Bonds – 10.47%
Aerospace & Defense – 0.69%
#AAR 144A 1.75% exercise price $29.43, expiration date 1/1/26   90,000 64,350
#L-3 Communications Holdings 144A 3.00% exercise price $101.13, expiration date 8/1/35 110,000 107,525
  171,875
Banking, Finance & Insurance – 0.18%
*National City 4.00% exercise price $482.51 expiration date 2/1/11 50,000 45,188
  45,188
Basic Materials – 0.65%
Rayonier TRS Holdings 3.75% exercise price $54.82, expiration date 10/15/12 135,000 118,463
#Sino-Forest 144A 5.00% exercise price $20.29 expiration date 8/1/13 65,000 42,900
  161,363
Cable, Media & Publishing – 0.53%
General Cable 0.875% exercise price $50.36, expiration date 11/14/13 80,000 52,600
#Playboy Enterprises 144A 3.00% exercise price $17.02, expiration date 3/15/25 160,000 80,800
  133,400
Computers & Technology – 1.72%
Advanced Micro Devices
     6.00% exercise price $28.08, expiration date 5/1/15 70,000 25,988
     #144A 6.00% exercise price $28.08, expiration date 5/1/15 165,000 61,256


Euronet Worldwide 3.50% exercise price $40.48, expiration date 10/15/25 165,000             110,962
Hutchinson Technology 3.25% exercise price $36.43, expiration date 1/14/26 120,000 31,650
#Intel 144A 2.95% exercise price $31.53, expiration date 12/15/35 105,000 81,505
Linear Technology 3.125% exercise price $48.24 expiration date 5/1/27 70,000 66,063
*SanDisk 1.00% exercise price $82.36, expiration date 5/15/13 100,000 53,875
431,299
Electronics & Electrical Equipment – 0.13%
Flextronics International 1.00% exercise price $15.53, expiration date 8/1/10 35,000 31,675
31,675
Energy – 0.34%  
Peabody Energy 4.75% exercise price $58.44, expiration date 12/15/41 35,000 23,888
Transocean
     1.50% exercise price $168.61, expiration date 12/15/37 35,000 29,619
     1.625% exercise price $168.61, expiration date 12/15/37 35,000   31,368
84,875
Environmental Services – 0.26%
Allied Waste Industries 4.25% exercise price $45.40, expiration date 4/15/34 71,000 66,296
66,296
Health Care & Pharmaceuticals – 2.62%
Advanced Medical Optics 3.25% exercise price $59.61, expiration date 8/1/26  90,000 90,000
#Allergan 144A 1.50% exercise price $63.33, expiration date 4/1/26 150,000 144,000
Amgen
     0.375% exercise price $79.48, expiration date 2/1/13 85,000 75,650
     #144A 0.375% exercise price $79.48, expiration date 2/1/13 60,000 53,400
CV Therapeutics 3.25% exercise price $27.00, expiration date 8/16/13 10,000 8,700
fHologic 2.00% exercise price $38.59, expiration date 12/15/37 85,000 55,675
LifePoint Hospitals 3.50% exercise price $51.79, expiration date 5/14/14 40,000 29,350
·Wyeth 0.965% exercise price $60.09, expiration date 1/15/24 200,000 198,599
655,374
Real Estate – 0.62%
#Host Hotels & Resorts 144A 3.25% exercise price $16.00, expiration date 3/15/24 15,000 13,688
MeriStar Hospitality 9.50% exercise price $10.18, expiration date 4/1/10 85,000 87,252
Vornado Realty Trust 2.85% exercise price $159.04, expiration date 3/15/27 70,000 53,113
154,053
Retail – 0.18%
Pantry 3.00% exercise price $50.10, expiration date 11/15/12 65,000 45,338
45,338
Telecommunications – 1.95%
#Alaska Communications System Group 144A 5.75% exercise price $12.90, expiration date 3/1/13 105,000 68,644
CommScope 1.00% exercise price $21.75, expiration date 3/15/24 85,000 84,575
#Leap Wireless International 144A 4.50% exercise price $93.21, expiration date 7/15/14 21,000 14,280
Level 3 Communications 3.50% exercise price $5.46, expiration date 6/15/12 110,000 44,963
NII Holdings 3.125% exercise price $118.32, expiration date 6/15/12 175,000 117,249
*Qwest Communications International 3.50% exercise price $5.33, expiration date 11/15/25 70,000 62,913
#Virgin Media 144A 6.50% exercise price $19.22, expiration date 11/15/16 180,000 94,949
487,573
Transportation – 0.16%
Bristow Group 3.00% exercise price $77.34 expiration date 6/15/38 70,000 40,863
40,863
Utilities – 0.44%
Dominion Resources 2.125% exercise price $36.14, expiration date 12/15/23 110,000 110,138
110,138
Total Convertible Bonds (cost $3,481,137) 2,619,310
  
Corporate Bonds – 27.49%
Banking – 0.74%
#GMAC 144A
     6.00% 12/15/11 5,000 2,931
     6.625% 5/15/12 12,000 6,918
     6.875% 9/15/11 15,000 9,770
     6.875% 8/28/12 22,000 12,675


JPMorgan Chase Capital XXV 6.80% 10/1/37 187,000             140,019
·USB Capital IX 6.189% 4/15/49 15,000 6,002
·Wells Fargo Capital XIII 7.70% 12/29/49 15,000 7,308
185,623
Basic Industry – 2.68%
ArcelorMittal 6.125% 6/1/18 72,000 55,525
California Steel Industries 6.125% 3/15/14 30,000 20,850
Domtar 7.125% 8/15/15 50,000 34,250
Freeport McMoRan Copper & Gold 8.25% 4/1/15 61,000 54,352
Georgia-Pacific
     7.70% 6/15/15 15,000 13,275
     *8.875% 5/15/31 32,000 24,800
Huntsman International
     7.875% 11/15/14 20,000 9,600
     8.375% 1/1/15 25,000 11,813
Innophos 8.875% 8/15/14 45,000 36,000
@#Innophos Holding 144A 9.50% 4/15/12 30,000 21,750
International Coal Group 10.25% 7/15/14 25,000   18,125
#MacDermid 144A 9.50% 4/15/17 78,000 31,200
Momentive Performance Materials 9.75% 12/1/14 50,000 19,250
NewPage 10.00% 5/1/12 30,000 9,225
Noranda Aluminum Acquisition PIK 6.595% 5/15/15 40,000 9,800
Norske Skog Canada 8.625% 6/15/11 40,000 18,600
@=Port Townsend 12.431% 8/27/12 28,776 20,863
@Potlatch 12.50% 12/1/09 88,000 92,474
#Rock-Tenn 144A 9.25% 3/15/16 35,000 35,000
Rockwood Specialties Group 7.50% 11/15/14 50,000 42,750
#Ryerson 144A
     ·8.545% 11/1/14 25,000 12,875
     12.25% 11/1/15 10,000 5,950
@#Sappi Papier Holding 144A 6.75% 6/15/12 45,000 27,740
#Steel Dynamics 144A 7.75% 4/15/16 50,000 38,750
·Verso Paper Holdings 4.92% 8/1/14 20,000 5,300
670,117
Brokerage – 0.66%
E Trade Financial 12.50% 11/30/17 20,000 9,300
Goldman Sachs Group 6.75% 10/1/37 185,000 131,873
LaBranche 11.00% 5/15/12 27,000 23,895
165,068
Capital Goods – 2.03%
*Associated Materials 9.75% 4/15/12 25,000 20,750
Building Materials Corporation of America 7.75% 8/1/14 25,000 17,250
BWAY 10.00% 10/15/10 85,000 80,113
@CPG International I 10.50% 7/1/13 32,000 17,120
*Graham Packaging 9.875% 10/15/14 60,000 38,100
*Graphic Packaging International 9.50% 8/15/13 75,000 56,250
Greenbrier 8.375% 5/15/15 25,000 12,438
@Intertape Polymer 8.50% 8/1/14 26,000 16,250
L-3 Communications 7.625% 6/15/12 30,000 30,225
#Moog 144A 7.25% 6/15/18 30,000 27,150
Owens Brockway Glass Container 6.75% 12/1/14 110,000 106,699
*RBS Global/Rexnord 11.75% 8/1/16 25,000 16,500
*Sally Holdings Capital 10.50% 11/15/16 50,000 43,625
Thermadyne Holdings 9.50% 2/1/14 30,000 19,275
Vought Aircraft Industries 8.00% 7/15/11 10,000 5,550
507,295
Consumer Cyclical – 1.91%
Centex
     4.55% 11/1/10 35,000 31,325
     5.125% 10/1/13 10,000 7,800
*Denny's Holdings 10.00% 10/1/12 15,000 12,975
*Dollar General 10.625% 7/15/15 35,000 35,263


DR Horton            
     6.00% 4/15/11 15,000 13,575
     7.875% 8/15/11 50,000 46,250
#Expedia 144A 8.50% 7/1/16 25,000 20,625
Ford Motor Credit
     7.80% 6/1/12 100,000 54,234
     9.875% 8/10/11 10,000 5,816
*Goodyear Tire & Rubber 9.00% 7/1/15 30,000 22,800
#Invista 144A 9.25% 5/1/12 25,000 23,125
Lear 8.75% 12/1/16 114,000 19,950
Levi Strauss 9.75% 1/15/15 33,000 27,555
M/I Homes 6.875% 4/1/12 20,000 10,600
Mobile Mini 6.875% 5/1/15 30,000 22,350
*Neiman Marcus Group 10.375% 10/15/15 40,000 16,850
Ryland Group 6.875% 6/15/13 55,000 47,299
*Tenneco Automotive 8.625% 11/15/14 110,000 15,950
Toll 8.25% 2/1/11 45,000 44,325
478,667
Consumer Non-Cyclical – 2.21%
ACCO Brands 7.625% 8/15/15 30,000 12,300
Alliance One International  
     8.50% 5/15/12 10,000 8,700
     11.00% 5/15/12 5,000 4,725
*#Bausch & Lomb 144A 9.875% 11/1/15 90,000 81,899
*Chiquita Brands International 8.875% 12/1/15 25,000 19,188
Constellation Brands 8.125% 1/15/12 85,000 84,574
Cornell 10.75% 7/1/12 15,000 13,875
*Cott Beverages USA 8.00% 12/15/11 20,000 10,900
Del Monte
     6.75% 2/15/15 15,000 14,400
     8.625% 12/15/12 10,000 10,125
*Iron Mountain
     6.625% 1/1/16 30,000 28,050
     8.00% 6/15/20 30,000 28,350
*Jarden 7.50% 5/1/17 31,000 24,335
JohnsonDiversey Holdings 10.67% 5/15/13 25,000 18,625
LVB Acquisition
     10.00% 10/15/17 30,000 30,150
     11.625% 10/15/17 5,000 4,650
McKesson 7.50% 2/15/19 60,000 62,753
National Beef Packing 10.50% 8/1/11 32,000 23,520
Pinnacle Foods Finance 9.25% 4/1/15 15,000 12,375
#Tyson Foods 144A 10.50% 3/1/14 15,000 14,213
Universal Hospital Services PIK 8.50% 6/1/15 5,000 4,375
Visant Holding 8.75% 12/1/13 45,000 41,625
553,707
Energy – 3.81%
AmeriGas Partners 7.125% 5/20/16 57,000 53,295
Chesapeake Energy 6.375% 6/15/15 48,000 39,480
Complete Production Service 8.00% 12/15/16 25,000 17,031
Compton Petroleum Finance 7.625% 12/1/13 83,000 28,220
#Connacher Oil & Gas 144A 10.25% 12/15/15 35,000 13,475
#Copano Energy 144A 7.75% 6/1/18 30,000 23,550
Denbury Resources 9.75% 3/1/16 15,000 14,175
Dynegy Holdings 7.75% 6/1/19 35,000 21,350
El Paso
     6.875% 6/15/14 21,000 18,665
     7.00% 6/15/17 5,000 4,411
#El Paso Performance-Linked Trust 144A 7.75% 7/15/11 46,000 43,643
Enterprise Products Operating 9.75% 1/31/14 50,000 54,189
Frontier Oil 8.50% 9/15/16 20,000 19,400


Geophysique-Veritas                        
     7.50% 5/15/15 13,000 10,238
     7.75% 5/15/17 36,000 28,080
#Helix Energy Solutions Group 144A 9.50% 1/15/16 45,000 25,425
#Hilcorp Energy I 144A
     7.75% 11/1/15 7,000 5,390
     9.00% 6/1/16 52,000 41,600
Inergy Finance
     6.875% 12/15/14 52,000 48,100
     8.25% 3/1/16 20,000 19,300
Key Energy Services 8.375% 12/1/14 40,000 26,200
Mariner Energy 8.00% 5/15/17 60,000 40,200
MarkWest Energy Partners/Finance 8.75% 4/15/18 60,000 42,900
Massey Energy 6.875% 12/15/13 62,000 54,869
OPTI Canada
     7.875% 12/15/14 35,000 11,725
     8.25% 12/15/14 13,000 4,485
*Petrobras International Finance 7.875% 3/15/19 45,000 45,338
PetroHawk Energy
     9.125% 7/15/13 17,000 16,150
     #144A 7.875% 6/1/15 15,000 12,975
@Petroleum Development 12.00% 2/15/18 30,000 19,125
Plains Exploration & Production 7.00% 3/15/17 46,000   39,445
Range Resources 7.25% 5/1/18 30,000 27,300
Regency Energy Partners 8.375% 12/15/13 48,000 40,200
#Tennessee Gas Pipeline 144A 8.00% 2/1/16   10,000 9,875
Whiting Petroleum 7.25% 5/1/13   22,000 18,040
*Williams 7.50% 1/15/31 18,000 14,660
  952,504
Finance & Investments – 2.30%
@GE Capital UK Funding 4.625% 1/18/16 GBP 114,000 145,203
General Electric Capital
     ·3.85% 2/2/11 NOK 1,000,000 130,705
     @5.125% 1/28/14 SEK 1,000,000 109,583
·Hartford Financial Services Group 8.125% 6/15/38 USD 45,000 21,388
Hexion US Finance 9.75% 11/15/14 25,000 3,375
·@HSBC Financial 1.249% 4/24/10 CAD 101,000 77,739
Lender Processing Services 8.125% 7/1/16 USD 25,000 25,094
Leucadia National 8.125% 9/15/15 29,000 24,215
·#Liberty Mutual 144A 10.75% 6/15/58 40,000 21,226
@#Nuveen Investments 144A 10.50% 11/15/15 77,000 18,095
576,623
Media – 1.33%
#Charter Communications Operating 144A
     *8.00% 4/30/12 5,000 4,475
     *8.375% 4/30/14 15,000 12,975
     10.875% 9/15/14 65,000 60,450
#CSC Holdings 144A 8.50% 6/15/15 30,000 28,800
DirecTV Holdings 8.375% 3/15/13 11,000 11,165
EchoStar DBS 7.125% 2/1/16 35,000 31,763
Lamar Media
     6.625% 8/15/15 45,000 28,350
     *6.625% 8/15/15 15,000 9,750
#LBI Media 144A 8.50% 8/1/17 25,000 7,625
Mediacom Capital 9.50% 1/15/13 20,000 17,500
Nielsen Finance
     10.00% 8/1/14 30,000 24,900
     #144A 11.625% 2/1/14 5,000 4,350
Quebecor Media 7.75% 3/15/16 17,000 13,940
#Rainbow National Services 144A 10.375% 9/1/14 20,000 20,575
#Videotron 144A 9.125% 4/15/18 55,000 55,825
332,443


Services Cyclical – 2.01%                        
ARAMARK 8.50% 2/1/15 58,000 53,069
@Cardtronics 9.25% 8/15/13 67,000 44,555
Corrections Corporation of America 6.25% 3/15/13 25,000 24,063
#Erac USA Finance 144A 6.375% 10/15/17 20,000 13,014
FTI Consulting 7.625% 6/15/13 99,000 99,247
Gaylord Entertainment
     6.75% 11/15/14 20,000 12,800
     8.00% 11/15/13 22,000 14,685
Global Cash Access 8.75% 3/15/12 40,000 31,800
Hertz
     8.875% 1/1/14 39,000 19,305
     *10.50% 1/1/16 15,000 5,700
MGM MIRAGE
     6.75% 4/1/13 35,000 15,138
     *7.50% 6/1/16 15,000 6,113
     *#144A 13.00% 11/15/13 10,000   7,250
@‡Northwest Airlines 10.00% 2/1/10 15,000 19
*Pinnacle Entertainment 8.75% 10/1/13 40,000 35,800
@#Pokagon Gaming Authority 144A 10.375% 6/15/14 66,000 58,409
RSC Equipment Rental 9.50% 12/1/14 25,000 13,500
@#Seminole Indian Tribe of Florida 144A
     7.804% 10/1/20     40,000 31,270
     8.03% 10/1/20 20,000 16,637
502,374
Services Non-Cyclical – 1.61%
Alliance Imaging 7.25% 12/15/12 30,000 28,200
Allied Waste North America
     6.875% 6/1/17 25,000 23,787
     7.125% 5/15/16 10,000 9,663
Casella Waste Systems 9.75% 2/1/13 73,000 64,240
Community Health Systems 8.875% 7/15/15 55,000 52,319
HCA 
     6.50% 2/15/16 45,000 30,375
     9.25% 11/15/16 15,000 13,763
     PIK 9.625% 11/15/16 75,000 62,813
·HealthSouth 8.323% 6/15/14 60,000 51,900
Select Medical 7.625% 2/1/15 65,000 40,300
Tenet Healthcare 7.375% 2/1/13 30,000 25,500
402,860
Technology & Electronics – 1.46%
Amkor Technologies 7.75% 5/15/13 15,000 8,906
Celestica
     7.625% 7/1/13 5,000 4,500
     7.875% 7/1/11 15,000 14,456
Flextronics International
     *6.25% 11/15/14 25,000 21,125
     6.50% 5/15/13 5,000 4,438
@International Business Machines 4.00% 11/11/11 EUR 200,000 257,394
Sungard Data Systems
     9.125% 8/15/13 USD 34,000 29,070
     10.25% 8/15/15 35,000 24,150
364,039
Telecommunications – 3.26%
·Centennial Communications 7.185% 1/1/13 14,000 14,000
Cincinnati Bell
     7.00% 2/15/15 25,000 22,875
     7.25% 7/15/13 15,000 14,400
Cricket Communications 9.375% 11/1/14 62,000 56,885
Crown Castle International 9.00% 1/15/15 55,000 53,900
GCI 7.25% 2/15/14 15,000 13,575
Hughes Network Systems 9.50% 4/15/14 52,000 45,760
Inmarsat Finance 10.375% 11/15/12 60,000 61,500


Intelsat Jackson Holdings 11.25% 6/15/16             82,000             77,695
#Intelsat Subsidiary Holding 144A 8.875% 1/15/15 15,000 14,325
Lucent Technologies 6.45% 3/15/29 42,000 15,435
MetroPCS Wireless 9.25% 11/1/14 87,000 82,650
*Qwest Capital Funding 7.25% 2/15/11 32,000 30,640
Sprint Nextel 6.00% 12/1/16 100,000 65,090
Telecom Italia Capital 5.25% 10/1/15 98,000 82,778
#Telesat Canada 144A
     11.00% 11/1/15 35,000 28,525
     12.50% 11/1/17 10,000 7,250
Time Warner Telecom Holdings 9.25% 2/15/14 40,000 38,100
Virgin Media Finance 8.75% 4/15/14 65,000 58,744
Windstream 8.125% 8/1/13 32,000   31,200
  815,327
Utilities – 1.48%
AES
     8.00% 10/15/17 41,000 35,055
     #144A 8.00% 6/1/20 15,000 12,525
     #144A 8.75% 5/15/13 16,000 15,600
Edison Mission Energy 7.625% 5/15/27   25,000 18,875
Elwood Energy 8.159% 7/5/26 87,224 70,614
Midwest Generation 8.30% 7/2/09 18,255 18,253
Mirant North America 7.375% 12/31/13 57,000 52,440
NRG Energy
     7.375% 2/1/16 48,000 44,400
     7.375% 1/15/17   5,000 4,638
Orion Power Holdings 12.00% 5/1/10 50,000 51,563
Reliant Energy 7.625% 6/15/14 25,000 18,250
Texas Competitive Electric Holdings 10.25% 11/1/15 55,000 28,050
  370,263
Total Corporate Bonds (cost $8,509,909) 6,876,910
 
Foreign Agencies – 3.69%
Germany – 3.69%
KFW
     3.50% 7/4/21 EUR 228,000 268,113
     4.125% 7/4/17 EUR 323,000 423,335
     8.00% 12/21/12 NZD 160,000 90,950
Rentenbank 1.375% 4/25/13 JPY 14,000,000 140,972
Total Foreign Agencies (cost $948,550) 923,370
  
Regional Agency – 1.01%
Australia – 1.01%
New South Wales Treasury 6.00% 5/1/12 AUD 377,000 252,302
Total Regional Agency (cost $312,381) 252,302
  
«Senior Secured Loans – 0.53%
Ford Motor Term B 3.556% 11/29/13 USD 115,000 37,838
General Motors Term B 8.029% 11/17/13 49,873 18,593
Talecris Biotherapeutics 2nd Lien 7.74% 12/6/14 55,000 47,163
Toys R US New Term Loan 4.80% 7/19/12 50,000 28,322
Total Senior Secured Loans (cost $168,857) 131,916
 
Sovereign Agencies – 1.09%
Norway – 1.09%
Kommunalbanken
     4.25% 10/24/11 NOK 940,000 137,299
     8.00% 10/19/10 NZD 250,000 134,192
Total Sovereign Agencies (cost $336,738) 271,491
 
Sovereign Debt – 6.77%
Austria – 1.79%
#Republic of Austria 144A 4.00% 9/15/16 EUR 350,000 448,285
448,285


Canada – 0.97%
Canadian Government                        
     3.50% 6/1/13 CAD 148,000 123,982
     4.25% 6/1/18 CAD 135,000 117,448
241,430
Japan – 2.37%
Japan Government
     10 yr Bond 1.70% 3/20/17 JPY 11,550,000 125,001
     30 yr Bond 2.40% 3/20/37 JPY 17,550,000 195,058
     CPI Linked 1.20% 6/10/17 JPY 9,884,300 83,555
     CPI Linked 1.20% 12/10/17 JPY 10,120,000 85,498
     CPI Linked 1.30% 9/10/17 JPY 12,168,000 104,171
  593,283
Mexico – 0.15%
*United Mexican States 5.95% 3/19/19 USD 40,000 38,600
  38,600
Republic of Korea – 0.53%
Government of South Korea 4.25% 12/7/21 EUR 140,000 132,894
  132,894
Sweden – 0.17%
Swedish Government 5.50% 10/8/12 SEK 330,000 41,478
  41,478
United Kingdom – 0.79%  
U.K. Treasury 5.00% 3/7/18 GBP 123,300 198,679
    198,679
Total Sovereign Debt (cost $1,832,016) 1,694,649
  
Supranational Banks – 4.65%  
European Investment Bank  
     4.75% 10/15/17 EUR 287,000 391,139
     5.75% 9/15/09 AUD 260,000 168,271
     6.00% 8/14/13 AUD 78,000 52,503
     6.125% 1/23/17 AUD 73,000 49,259
     6.25% 4/15/14 GBP 130,000 211,454
Inter-American Development Bank 7.25% 5/24/12 NZD 378,000 206,248
International Bank for Reconstruction & Development 12.25% 8/4/10 BRL 200,000 84,700
Total Supranational Banks (cost $1,326,737) 1,163,574
  
Number of
Shares
Limited Partnership – 0.07%
*Brookfield Infrastructure Partners 1,600 18,592
Total Limited Partnership (cost $30,407) 18,592
  
Right – 0.02%
±*Cie de Saint-Gobain 3,880 5,705
Total Right (cost $0) 5,705
 
Warrants – 0.00%
P†=Port Townsend 20 0
†#Solutia 144A, exercise price $7.59, expiration date 7/15/09 130   0
Total Warrants (cost $11,539) 0
  
Principal
Amount°
Repurchase Agreements** – 18.05%
BNP Paribas 0.24%, dated 2/27/09, to be
repurchased on 3/2/09, repurchase price $4,515,090
(collateralized by U.S. Government obligations,
5/14/09 - 2/11/10; market value $4,609,638) USD 4,515,000 4,515,000
Total Repurchase Agreements (cost $4,515,000) 4,515,000
  
Total Value of Securities Before Securities Lending Collateral – 141.31%
     (cost $48,977,568) 35,349,221


Number of            
Shares
Securities Lending Collateral*** – 11.76%
Investment Companies
     Mellon GSL DBT II Collateral Fund 3,015,188 2,942,664
     †Mellon GSL DBT II Liquidation Trust 78,121 8
Total Securities Lending Collateral (cost $3,093,309) 2,942,672
  
Total Value of Securities – 153.07%
     (cost $52,070,877) 38,291,893 ©
Obligation to Return Securities Lending Collateral*** – (12.37%) (3,093,309 )
Borrowing Under Line of Credit – (42.87%) (10,725,000 )
Receivables and Other Assets Net of Liabilities (See Notes) – 2.17% 542,848
Net Assets Applicable to 5,190,559 Shares Outstanding – 100.00% $ 25,016,432  

°Principal amount shown is stated in the currency in which each security is denominated.

AUD - Australian Dollar
BRL - Brazilian Real
CAD – Canadian Dollar
CHF – Swiss Franc
EUR – European Monetary Unit
GBP – British Pound Sterling
JPY – Japanese Yen
MYR - Malaysia Ringgit
NOK – Norwegian Kroner
NZD – New Zealand Dollar
SEK – Swedish Krona
SGD – Singapore Dollar
USD – United States Dollar

vSecurities have been classified by type of business.
@Illiquid security. At February 28, 2009, the aggregate amount of illiquid securities was $974,226, which represented 3.89% of the Fund’s net assets. See Note 7 in “Notes.”
=Security is being fair valued in accordance with the Fund’s fair valuation policy. At February 28, 2009, the aggregate amount of fair valued securities was $20,864, which represented 0.08% of the Fund’s net assets. See Note 1 in "Notes."
±Security is being valued based on international fair value pricing. At February 28, 2009, the aggregate amount of international fair value priced securities was $6,616,538, which represented 26.45% of the Fund's net assets. See Note 1 in "Notes."
†Non income producing security.
·Variable rate security. The rate shown is the rate as of February 28, 2009.
#Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At February 28, 2009, the aggregate amount of Rule 144A securities was $2,314,263 which represented 9.25% of the Fund’s net assets. See Note 7 in “Notes.”
‡Non income producing security. Security is currently in default.
fStep coupon bond. Coupon increases periodically based on a predetermined schedule. Stated rate in effect at February 28, 2009.
«Senior Secured Loans generally pay interest at rates which are periodically redetermined by reference to a base lending rate plus a premium. These base lending rates are generally: (i) the prime rate offered by one or more United States banks, (ii) the lending rate offered by one or more European banks such as the London Inter-Bank Offered Rate (LIBOR), and (iii) the certificate of deposit rate. Senior Secured Loans may be subject to restrictions on resale.
*Fully or partially on loan.
**See Note 1 in “Notes.”
***See Note 6 in “Notes.”
©Includes $2,931,875 of securities loaned.
PRestricted Security. These investments are in securities not registered under the Securities Act of 1933, as amended, and have certain restrictions on resale which may limit their liquidity. At February 28, 2009, the aggregate amount of the restricted securities was $1 or 0.00% of the Fund's net assets. See Note 7 in Notes.

Summary of Abbreviations:
ADR – American Depositary Receipt
CPI – Consumer Price Index
FDR – Foreign Depositary Receipt
PIK – Payment-in-kind
REIT – Real Estate Investment Trust
S.F. – Single Family
TBA – To Be Announced
yr – Year

The following foreign currency exchange contracts and foreign cross currency exchange contracts were outstanding at February 28, 2009:

Foreign Currency Exchange Contracts1

Unrealized
Contracts to Appreciation
Receive (Deliver) In Exchange For Settlement Date   (Depreciation)
AUD (844,704 ) USD 556,575 3/31/09 $ 17,676  
BRL (187,506 ) USD 80,769 3/31/09 2,444
CAD (242,809 ) USD 192,068 3/31/09 1,213  
CAD (133,635 ) USD 107,414 3/31/09   2,374
CHF 83,826 USD (71,517 )   3/31/09   180
EUR (414,247 )   USD 523,065 3/31/09 (1,923 )
EUR (631,822 )   USD 796,096   3/31/09   (4,633 )
EUR 2,741,779 USD (3,531,960 ) 3/31/09 (57,215 )
GBP 189,022 EUR (213,495 ) 3/31/09 (16 )
GBP (55,330 ) USD 78,679 3/31/09 (517 )
GBP (68,024 ) USD 96,781 3/3/109 (584 )
GBP (81,662 ) USD 116,732 3/31/09 (154 )
JPY    161,221,754 USD    (1,753,707 ) 3/31/09 (100,607 )
JPY 205,893,332 USD (2,240,406 ) 3/31/09 (129,264 )
MYR 169,670 USD (47,000 ) 3/31/09 (1,282 )
NOK (1,794,296 ) USD 264,236 3/31/09 9,313
NZD (45,840 ) USD 24,043 3/31/09 1,135
NZD (861,297 ) USD 435,816 3/31/09 5,398
SEK (602,078 ) USD 68,949 3/31/09 2,121
SGD 55,729 USD (37,000 ) 3/31/09     (1,005 )
$ (255,346 )

The use of foreign currency exchange contracts and foreign cross currency exchange contracts involves elements of market risk and risks in excess of the amounts recognized in the financial statements. The notional values presented above represent the Fund’s (as defined below) total exposure in such contracts, whereas only the net unrealized appreciation (depreciation) is reflected in the Fund’s net assets.

1See Note 4 in “Notes.”

Notes

1. Significant Accounting Policies
The following accounting policies are in accordance with U.S. generally accepted accounting principles and are consistently followed by Delaware Investments® Global Dividend and Income Fund, Inc. (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 the 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 the ask prices will be used. Securities listed on a foreign exchange are valued at the last quoted sales price on the valuation date. U.S. Government and agency securities are valued at the mean between the bid and ask prices. Other long-term debt securities, credit default swap (CDS) contracts and interest rate swap contracts are valued by an independent pricing service or broker. To the extent current market prices are not available, the pricing service may take into account developments related to the specific security, as well as transactions in comparable securities. Investment companies are valued at net asset value per share. Foreign currency exchange contracts and foreign cross currency exchange contracts are valued at the mean between the bid and ask prices. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available. Generally, index swap contracts and 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 (Board). 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 suspension of trading in a security. The Fund may use fair value pricing more frequently for securities traded primarily in non-U.S. markets because, among other things, most foreign markets close well before the Fund values its securities at 4:00 p.m. Eastern time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, government actions or pronouncements, aftermarket trading, or news events may have occurred in the interim. To account for this, the Fund may frequently value foreign securities using fair value prices based on third-party vendor modeling tools (international fair value pricing).

Federal Income Taxes – No provision for federal income taxes has been made as the Fund intends to continue to qualify for federal income tax purposes as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, and make the requisite distributions to shareholders. The Fund evaluates tax positions taken or expected to be taken in the course of preparing the Funds tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. The Fund did not record any tax benefit or expense in the current period.

Repurchase Agreements – The Fund may invest in a pooled cash account along with other members of the Delaware Investments® 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 at least 102% collateralized. However, in the event of default or bankruptcy by the counterparty to the agreement, realization of the collateral may be subject to legal proceedings.

Distributions – The Fund has a managed distribution policy. Under the policy, the Fund declares and pays monthly distributions and is managed with a goal of generating as much of the distribution as possible from ordinary income (net investment income and short-term capital gains). The balance of the distribution then comes from long-term capital gains to the extent permitted and, if necessary, a return of capital.

Foreign Currency Transactions – Transactions denominated in foreign currencies are recorded at the prevailing exchange rates on the valuation date. The value of all assets and liabilities denominated in foreign currencies is translated into U.S. dollars at the exchange rate of such currencies against the U.S. dollar daily. Transaction gains or losses resulting from changes in exchange rates during the reporting period or upon settlement of the foreign currency transaction are reported in operations for the current period. The Fund isolates that portion of realized gains and losses on investments in debt securities which are due to changes in foreign exchange rates from that which are due to changes in market prices of debt securities. For foreign equity securities, these changes are included in realized gains (losses) on investments. The Fund reports certain foreign currency related transactions as components of realized gains (losses) for financial reporting purposes, whereas such components are treated as ordinary income (loss) for federal income tax purposes.

Use of Estimates – The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Other - Expenses directly attributable to the Fund are charged directly to the Fund. Other expenses common to various funds within the Delaware Investments® Family of Funds are generally allocated amongst such funds on the basis of average net assets. Management fees and some other expenses are paid monthly. Security transactions are recorded on the date the securities are purchased or sold (trade date) for financial reporting purposes. Costs used in calculating realized gains and losses on the sale of investment securities are those of the specific securities sold. Dividend income is recorded on the ex-dividend date and interest income is recorded on the accrual basis. Discounts and premiums on non-convertible bonds are amortized to interest income over the lives of the respective securities. Realized gains (losses) on paydowns of mortgage- and asset-backed securities are classified as interest income. Foreign dividends are also recorded on the ex-dividend date or as soon after the ex-dividend date that the Fund is aware of such dividends, net of all non-rebatable tax withholdings. Withholding taxes on foreign dividends and interest have been recorded in accordance with the Fund’s understanding of the applicable country’s tax rules and rates. Distributions received from investments in Real Estate Investment Trusts (REITs) are recorded as dividend income on ex-dividend date as an estimate, subject to reclassification upon notice of the character of such distributions by the issuer.

2. Investments
At February 28, 2009, the cost of investments for federal income tax purposes has been estimated since the final tax characteristics cannot be determined until fiscal year end. At February 28, 2009, the cost of investments and unrealized appreciation (depreciation) for the Fund was as follows:

Cost of investments  $ 52,589,736  
Aggregate unrealized appreciation  429,718  
Aggregate unrealized depreciation    (14,727,561 )
Net unrealized depreciation  $ (14,297,843 )

For federal income tax purposes, at November 30, 2008, capital loss carryforward of $6,164,872 may be carried forward and applied against future capital gains. Such capital loss carryforward expire in 2016.

The Fund applies Financial Accounting Standards No. 157, Fair Value Measurements (FAS 157). FAS 157 defines fair value as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. FAS 157 also establishes a framework for measuring fair value, and a three level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the assumptions that market participants would use in pricing the asset or liability developed based on the best information available under the circumstances. The Fund's investment in its entirety is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

Level 1 – inputs are quoted prices in active markets

Level 2 – inputs are observable, directly or indirectly

Level 3 – inputs are unobservable and reflect assumptions on the part of the reporting entity

The following table summarizes the valuation of the Fund’s investments by the FAS 157 fair value hierarchy levels as of February 28, 2009:

Securities       Derivatives
Level 1 $ 13,602,327 $ -  
Level 2 24,332,227   (255,346 )
Level 3   357,339 -
Total $ 38,291,893 $ (255,346 )

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:

Securities
Balance as of 11/30/08 $ 567,495
Net realized loss (279,731 )
Net change in unrealized
     appreciation/depreciation 125,169  
Net purchases, sales and settlements   (55,594 )
Net transfers in and/or out of level 3 -
Balance as of 2/28/09 $ 357,339
  
Net change in unrealized
     appreciation/depreciation from
     investments still held as of 2/28/09 $ 131,567

3. Line of Credit
For the period ended February 28, 2009 the Fund borrowed money pursuant to a $25,000,000 Line of Credit Agreement with The Bank of New York Mellon (BNY Mellon) that expires on November 30, 2009. At February 28, 2009, the par value of loans outstanding was $10,725,000 at a variable interest rate of 1.12%. During the period ended February 28, 2009, the average daily balance of loans outstanding was $10,725,000 at a weighted average interest rate of approximately 1.08%. Interest on borrowings is based on a variable short-term rate plus an applicable margin. The commitment fee is computed at a rate of 0.10% per annum on the unusual balance. The loan is collateralized by the Fund’s portfolio.

4. Foreign Currency Exchange Contracts
The Fund may enter into foreign currency exchange contracts and foreign cross currency exchange contracts as a way of managing foreign exchange rate risk. The Fund may enter into these contracts to fix the U.S. dollar value of a security that it has agreed to buy or sell for the period between the date the trade was entered into and the date the security is delivered and paid for. The Fund may also use these contracts to hedge the U.S. dollar value of securities it already owns that are denominated in foreign currencies. The change in market value is recorded as an unrealized gain or loss. When the contract is closed, a realized gain or loss is recorded equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

The use of foreign currency exchange contracts and foreign cross currency exchange contracts does not eliminate fluctuations in the underlying prices of the securities, but does establish a rate of exchange that can be achieved in the future. Although foreign currency exchange contracts limit the risk of loss due to a decline in the value of the hedged currency, they also limit any potential gain that might result should the value of the currency increase. In addition, the Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts.

5. Swap Contracts
The Fund may enter into interest rate swap contracts, index swap contracts and CDS contracts in accordance with its investment objectives. The Fund may use interest rate swaps to adjust the Fund’s sensitivity to interest rates or to hedge against changes in interest rates. Index swaps may be used to gain exposure to markets that the Fund invests in, such as the corporate bond market. The Fund may also use index swaps as a substitute for futures or options contracts if such contracts are not directly available to the Fund on favorable terms. The Fund may enter into CDS contracts in order to hedge against a credit event, to enhance total return or to gain exposure to certain securities or markets.

An interest rate swap involves payments received by the Fund from another party based on a variable or floating interest rate, in return for making payments based on a fixed interest rate. An interest rate swap can also work in reverse with the Fund’s receiving payments based on a fixed interest rate and making payments based on a variable or floating interest rate. Interest rate swaps may be used to adjust the Fund’s sensitivity to interest rates or to hedge against changes in interest rates. Periodic payments on such contracts are accrued daily and recorded as unrealized appreciation/depreciation on swap contracts. Upon periodic payment/receipt or termination of the contract, such amounts are recorded as realized gains or losses on swap contracts.

Index swaps involve commitments to pay interest in exchange for a market-linked return based on a notional amount. To the extent the total return of the security, instrument or basket of instruments underlying the transaction exceeds the offsetting interest obligation, the Fund will receive a payment from the counterparty. To the extent the total return of the security, instrument or basket of instruments underlying the transaction falls short of the offsetting interest obligation, the Fund will make a payment to the counterparty. The change in value of swap contracts outstanding, if any, is recorded as unrealized appreciation or depreciation daily. A realized gain or loss is recorded on maturity or termination of the swap contract.

A CDS contract is a risk-transfer instrument through which one party (purchaser of protection) transfers to another party (seller of protection) the financial risk of a credit event (as defined in the CDS agreement), as it relates to a particular reference security or basket of securities (such as an index). In exchange for the protection offered by the seller of protection, the purchaser of protection agrees to pay the seller of protection a periodic amount at a stated rate that is applied to the notional amount of the CDS contract. In addition, an upfront payment may be made or received by the Fund in connection with an unwinding or assignment of a CDS contract. Upon the occurrence of a credit event, the seller of protection would pay the par (or other agreed-upon) value of the referenced security (or basket of securities) to the counterparty.

During the period ended February 28, 2009, the Fund did not enter into CDS contracts as a purchaser or seller of protection. Periodic payments (receipts) on such contracts are accrued daily and recorded as unrealized losses (gains) on swap contracts. Upon payment (receipt), such amounts are recorded as realized losses (gains) on swap contracts. Upfront payments made or received in connection with CDS contracts are amortized over the expected life of the CDS contracts as unrealized losses (gains) on swap contracts. The change in value of CDS contracts is recorded as unrealized appreciation or depreciation daily. A realized gain or loss is recorded upon a credit event (as defined in the CDS agreement) or the maturity or termination of the agreement.

CDS may involve greater risks than if a Fund had invested in the referenced obligation directly. CDSs are subject to general market risk, liquidity risk, counterparty risk and credit risk. If the Fund enter into a CDS contract as a purchaser of protection and no credit event occurs, its exposure is limited to the periodic payments previously made to the counterparty.

Because there is no organized market for swap contracts, the value of open swaps may differ from that which would be realized in the event the Fund terminated its position in the agreement. Risks of entering into these agreements include the potential inability of the counterparty to meet the terms of the contracts. This type of risk is generally limited to the amount of favorable movements in the value of the underlying security, instrument, or basket of instruments, if any, at the day of default. Risks also arise from potential losses from adverse market movements and such losses could exceed the unrealized amounts.

6. Securities Lending
The Fund, along with other funds in the Delaware Investments® Family of Funds, may lend its securities pursuant to a security lending agreement (Lending Agreement) with the BNY Mellon. With respect to each loan, if the aggregate market value of securities collateral held plus cash collateral received 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 generally invested in the Mellon GSL DBT II Collateral Fund (Collective Trust) established by BNY Mellon for the purpose of investment on behalf of clients participating in its securities lending programs. The Collective Trust invests in fixed income securities, with a weighted average maturity not to exceed 90 days, rated in one of the top three tiers by Standard & Poor’s Ratings Group or Moody’s Investors Service, Inc. or repurchase agreements collateralized by such securities. The Collective Trust seeks to maintain a net asset value per unit of $1.00, but there can be no assurance that it will always be able to do so. The Fund may incur investment losses as a result of investing securities lending collateral in the Collective Trust. This could occur if an investment in the Collective Trust defaulted or if it were necessary to liquidate assets in the Collective Trust to meet returns on outstanding security loans at a time when the Collective Trust’s net asset value per unit was less than $1.00. Under those circumstances, the Fund may not receive an amount from the Collective Trust that is equal in amount to the collateral the Fund would be required to return to the borrower of the securities and the Fund would be required to make up for this shortfall. Prior to the fiscal period ended February 28, 2009, BNY Mellon transferred certain distressed securities from the Collective Trust into the Mellon GSL DBT II Liquidation Trust. The Fund can also accept U.S. government securities and letters of credit (non-cash collateral) in connection with securities loans. 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 or interest, as applicable, 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. With respect to security loans collateralized by non-cash collateral, the Fund receives loan premiums paid by the borrower. With respect to security loans collateralized by cash collateral, the earnings from the collateral investments are shared among the Fund, the security lending agent and the borrower. The Fund records security lending income net of allocations to the security lending agent and the borrower.

At February 28, 2009, the value of securities on loan was $2,931,875, for which the Fund received collateral, comprised of non-cash collateral valued at $29,877, and cash collateral of $3,093,309. Investments purchased with cash collateral are presented on the schedule of investments under the caption “Securities Lending Collateral.”

7. Credit and Market Risk
The Fund borrows through its line of credit for purposes of leveraging. Leveraging may result in higher degrees of volatility because the Fund’s net asset value could be subject to fluctuations in short-term interest rates and changes in market value of portfolio securities attributable to the leverage.

Some countries in which the Fund may invest require governmental approval for the repatriation of investment income, capital or the proceeds of sales of securities by foreign investors. In addition, if there is deterioration in a country’s balance of payments or for other reasons, a country may impose temporary restrictions on foreign capital remittances abroad.

The securities exchanges of certain foreign markets are substantially smaller, less liquid and more volatile than the major securities markets in the United States. Consequently, acquisition and disposition of securities by the Fund may be inhibited. In addition, a significant portion of the aggregate market value of equity securities listed on the major securities exchanges in emerging markets are held by a smaller number of investors. This may limit the number of shares available for acquisition or disposition by the Fund.

The Fund invests 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 invests in REITs and is subject to the risks associated with that industry. If the Fund holds real estate directly as a result of defaults or receives rental income directly from real estate holdings, its tax status as a regulated investment company may be jeopardized. There were no direct real estate holdings during the period ended February 28, 2009. 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.

The Fund may invest up to 10% of its net 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 has delegated to Delaware Management Company, a series of Delaware Management Business Trust, the day-to-day functions of determining whether individual securities are liquid for purposes of the Fund's limitation on investments in illiquid assets. Securities eligible for resale pursuant to Rule 144A, which are determined to be liquid, are not subject to the Fund’s 10% limit on investments in illiquid securities. Rule 144A and illiquid securities have been identified on the schedule of investments.

Item 2. Controls and Procedures.

     The registrant’s principal executive officer and principal financial officer have evaluated the registrant’s disclosure controls and procedures within 90 days of the filing of this report and have concluded that they are effective in providing reasonable assurance that the information required to be disclosed by the registrant in its reports or statements filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission.

     There were no significant changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

     File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)), exactly as set forth below: