-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, P1Bu6htjnqcDmtESY/l/Dw7hxHLaIRpMUrki/Vtrw6jVxafM1tIBn3g5Dvj1TTh2 ht/MYa1bBFZuhdK7E+6Icw== 0001206774-10-000235.txt : 20100204 0001206774-10-000235.hdr.sgml : 20100204 20100204161324 ACCESSION NUMBER: 0001206774-10-000235 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 8 CONFORMED PERIOD OF REPORT: 20091130 FILED AS OF DATE: 20100204 DATE AS OF CHANGE: 20100204 EFFECTIVENESS DATE: 20100204 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DELAWARE INVESTMENTS GLOBAL DIVIDEND & INCOME FUND, INC CENTRAL INDEX KEY: 0000916713 IRS NUMBER: 232753201 STATE OF INCORPORATION: DE FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-08246 FILM NUMBER: 10574293 BUSINESS ADDRESS: STREET 1: ONE COMMERCE SQUARE STREET 2: 2005 MARKET STREET CITY: PHILADELPHIA STATE: PA ZIP: 19103 BUSINESS PHONE: 18005231918 MAIL ADDRESS: STREET 1: ONE COMMERCE SQUARE STREET 2: 2005 MARKET STREET CITY: PHILADELPHIA STATE: PA ZIP: 19103 FORMER COMPANY: FORMER CONFORMED NAME: DELAWARE INVESTMENTS GLOBAL DIVIDEND & INCOME FUND INC DATE OF NAME CHANGE: 20020327 FORMER COMPANY: FORMER CONFORMED NAME: DELAWARE GROUP GLOBAL DIVIDEND & INCOME FUND INC DATE OF NAME CHANGE: 19931229 N-CSR 1 diglobaldiv_ncsr.htm CERTIFIED SHAREHOLDER REPORT diglobaldiv_ncsr.htm
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: 811-08246
 
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: November 30, 2009
 


Item 1. Reports to Stockholders
 

 
 
 
Annual Report Delaware
Investments
®
  Global Dividend
and Income
Fund, Inc.
 
  November 30, 2009 
   
 
   
   
 
 
 
 
 
 
 
 
 
The figures in the annual report for Delaware Investments Global Dividend and Income Fund, Inc. represent past results, which are not a guarantee of future results. A rise or fall in interest rates can have a significant impact on bond prices. Funds that invest in bonds can lose their value as interest rates rise.
 
 
 
 
  Closed-end fund
 
 
 


Table of contents
 
     > Portfolio management review      1
 
> Performance summary 4
 
> Security type and country allocations 6
 
> Statement of net assets 8
 
  > Statement of operations 19
 
> Statements of changes in net assets   20
 
> Statement of cash flows 21
 
> Financial highlights 22
 
> Notes to financial statements 23
 
> Report of independent registered public accounting firm 30
 
> Other Fund information 31
 
> Board of trustees/directors and officers addendum 40
 
> About the organization 43
 

 
 
 
 
On January 4, 2010, Delaware Management Holdings, Inc. and its subsidiaries (collectively known by the marketing name of Delaware Investments) were sold by a subsidiary of Lincoln National Corporation to Macquarie Group Limited, a global provider of banking, financial, advisory, investment and funds management services. Please see recent press releases for more complete information.
 
Investments in Delaware Investments® Global Dividend and Income Fund, Inc. are not and will not be deposits with or liabilities of Macquarie Bank Limited ABN 46 008 583 542 and its holding companies, including subsidiaries or related companies, and are subject to investment risk, including possible delays in repayment and loss of income and capital invested. No Macquarie Group company guarantees or will guarantee the performance of the Fund, the repayment of capital from the Fund, or any particular rate of return.
 
Views expressed herein are current as of Dec. 8, 2009, and are subject to change.
 
Funds are not FDIC insured and are not guaranteed. It is possible to lose the principal amount invested.
 
Mutual fund advisory services are provided by Delaware Management Company, a series of Delaware Management Business Trust, which is a registered investment advisor. Delaware Investments is the marketing name of Delaware Management Holdings, Inc. and its subsidiaries. Macquarie Group refers to Macquarie Group Limited and its subsidiaries and affiliates worldwide.
 
© 2010 Delaware Management Holdings, Inc.
 
All third-party trademarks cited are the property of their respective owners.
 


Portfolio management review
 
Delaware Investments® Global Dividend and Income Fund, Inc.
 
Dec. 8, 2009
 
Performance preview (for the period ended Nov. 30, 2009)          
Delaware Investments Global Dividend and Income Fund, Inc. @ market price   1-year return +77.48%
Delaware Investments Global Dividend and Income Fund, Inc. @ NAV 1-year return +49.69%
Lipper Closed-end Income and Preferred Stock Funds Average @ market price 1-year return +72.45%
Lipper Closed-end Income and Preferred Stock Funds Average @ NAV 1-year return +54.38%
Past performance does not guarantee future results.
 
For complete, annualized performance for Delaware Investments Global Dividend and Income Fund, please see the table on page 4.
 
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
 
Delaware Investments Global Dividend and Income Fund, Inc. returned +49.69% at net asset value and +77.48% at market price (both figures reflect all distributions reinvested) for the fiscal year ended Nov. 30, 2009. Complete, annualized performance information for Delaware Investments Global Dividend and Income Fund, Inc. is shown in the table on page 4.
 
Prices of risky assets fell steeply before recovery
 
The fiscal year was largely a story in two parts. The period began amid the worst economic and financial markets that the portfolio management team has ever witnessed. The latter part of the period, however, featured a considerable recovery, with what the team viewed as attractive opportunities in both the fixed income and equity markets.
 
At the start of the fiscal period, financial markets were still reacting to the jolt received when storied Wall Street investment bank Lehman Brothers declared bankruptcy in September 2008. The bankruptcy, followed soon after by the federal bailout of insurance giant American International Group (AIG), sent the financial markets into a near panic. Risk aversion had become extreme by late 2008 and many investors seemingly fled all “risk” assets for the relative safety of securities issued by the U.S. government and other sovereign entities. Signs of fallout from the financial crisis were abundant, both in the economy and in securities markets.
 
The MSCI ACWI (All Country World Index), a broad measure of equity markets around the world, had declined by March 2009 to very near its lowest level since July 1995. The S&P 500 Index, a measure of the broad stock market in the United States, dropped by March to its lowest level since September 1996. Meanwhile, high yield bond spreads (which are used to measure a bond’s perceived level of risk) in the U.S. peaked in December 2008 at 21.0% as measured by J.P. Morgan, a level not seen since January 1995. (Source: Bloomberg.)
 
The prices of energy and commodities also fell sharply during the first half of the year, before starting to recover during the latter half. In early March 2009, the broad-based Thomson Reuters/Jefferies CRB Commodity Index dropped to its lowest level since January 2002 (source: Bloomberg). The price of crude oil also sank, with the West Texas Intermediate (a type of crude oil used as a benchmark in oil pricing) hitting a low of $31 a barrel in late December 2008, a full 78% below its all-time peak price of $145 in early July 2008 (source: Bloomberg).
 
Global equity and fixed income markets touched lows in March, and then began to recover vigorously for much of the rest of the period. Governments and central banks around the world stressed their intentions of continuing to provide support for economic recovery for as long as necessary, which helped investors become more willing to accept risk. At first, many investors began to reach for risk at the expense of quality, within both the equity and fixed income markets. Lower-rated bonds, for example, significantly outperformed their higher-rated peers during the spring and summer months, while stocks of many companies with questionable fundamentals outpaced those of solid companies. As the market recovery matured, however, it broadened to include almost every corner of the market, including higher-quality securities.
 
The views expressed are current as of the date of this report and are subject to change.
 
(continues)     1
 


Portfolio management review
 
Delaware Investments® Global Dividend and Income Fund, Inc.
 
Importantly, economies around the world began to show early signs of stabilization and cyclical recovery. During the third calendar quarter of 2009, in fact, the U.S. economy expanded by an estimated 2.8%, according to the U.S. Commerce Department’s reading of GDP released in November. It was the fastest growth in the past two years.
 
Fund positioning
 
The Fund’s primary objective is to seek high current income, with a secondary objective of capital appreciation. In managing the Fund, we pursue these goals by investing broadly in a range of income-generating securities from around the globe. These include core fixed income holdings (such as Treasury and agency securities) as well as investment grade and high yield corporate bonds, convertible bonds, real estate investment trusts (REITs), large-cap value stocks, and international value stocks.
 
Broadly speaking, we positioned the Fund defensively as the period began. When determining the Fund’s asset allocation at a portfolio level, for instance, we placed an emphasis on fixed income securities and convertible bonds over equities and REITs. From a risk-reward perspective, we tended to find fixed income asset classes as more appropriate for the Fund.
 
Among corporate bonds, for example, yields rose to historically high levels during the opening months of the period. Because prices decline as yields rise, the high yields on corporate bonds reflected the extreme risk aversion by investors at that time, and also highlighted some extraordinary value opportunities in our opinion. Although corporate bonds were affected by the difficult investment climate early in the period, both high yield and investment grade corporate bond positions within the Fund ultimately contributed performance for the fiscal year. Both asset classes performed well during the market’s recovery, and high yield bonds’ rebound was particularly notable.
 
Within high yield, the Fund generally carried a heavy position in speculative B-rated securities because we believed that the most favorable risk and reward opportunities existed there. Conversely, we maintained less exposure to bonds with a higher BB rating, which is just below investment grade. Our limited exposure to BB-rated bonds moderated Fund returns, however, because these bonds were among the better-performing bonds within the high yield asset class. (Credit ratings based on Standard & Poor’s opinion.)
 
The Fund’s increased exposure to convertible bonds also added to its overall performance. We added to convertible bond exposure because we believed the combination of yield, capital structure positioning, and potential upside made them attractive.
 
Among our REIT holdings, we continued to employ our “bottom up” security selection strategy, in which we evaluate potential investments one by one, based on our assessment of each company’s growth prospects, relative valuation, and balance-sheet quality (among other factors). Given the highly volatile conditions of the fiscal year, however, our approach was more opportunistic than usual, as we sought to take advantage of shifting opportunities in the marketplace.
 
Early on, as the investment environment deteriorated, we made our REIT holdings more defensive by focusing on companies with longer lease terms, including healthcare and “triple net” REITs. Triple-net leases, in which tenants pay all property maintenance costs in addition to rent, tend to be relatively defensive because they provide a greater income stream to landlords. Simultaneously, we limited our exposure to companies with shorter-duration leases, such as hotel companies, which tend to have uncertain cash flows relative to other sectors. We also looked to avoid stocks of companies with what we believed were significant balance-sheet problems.
 
This defensive stance was generally beneficial to Fund performance during the downturn. Nonetheless, we calculated that the recovery would be much shorter than it turned out to be when credit markets loosened and the REIT market advanced. In actuality, credit conditions continued to improve, and by summer it was evident that a longer-lived improvement was taking place. Our maintenance of cautious positioning for a time caused the Fund’s REIT positions to trail the broader market gains during some of the rally.
 
2
 


The gains made during the fiscal year by the Fund’s large-cap value equity holdings were more subdued than those of its high yield fixed income or REIT holdings. Much of the performance gain (versus the broader equity markets) from this equity allocation relative to the S&P 500 Index came in periods of market decline, such as the first several months of the period and again in October 2009.
 
This trend has been consistent with the aim of our management approach; through our value-oriented, defensive style, we seek to do well in relative terms in down markets by minimizing losses. The biggest positive for the Fund’s large-cap value holdings came from de-emphasizing the financial sector, the hardest-hit group in the marketplace during the downturn. Fund returns were negatively affected by our holdings in both the materials and industrials sectors, two groups in which our security selection proved disappointing.
 
In international equities, we maintained a defensive posture through the first half of 2009. This included dramatically cutting the Fund’s allocation to financial stocks that were highly sensitive economically. It also meant avoiding industrial and consumer-related companies with significant debt levels, which we believed would suffer if capital became less readily available. Beginning in the third quarter of 2009, as evidence mounted that the market’s progress was sustainable and that the economy was slowly improving, we felt more comfortable adding to our risk exposure in this portion of the Fund.
 
As the period came to a close, we were encouraged, as it appeared to us that international equity investors once again were generally favoring stocks with solid business fundamentals, sustainable earnings, and reasonable valuations. We believe this constitutes a more normalized investment environment than the speculative atmosphere of the second quarter. By the end of November 2009, the market appeared to be assessing stocks on a company-by-company basis, and because of our regular emphasis on careful individual stock research, we felt this was a favorable backdrop for our style of investing.
 
We recognize that the recent environment, one in which investors could be rewarded for simply increasing the amount of risk within their portfolios, cannot last forever. With this in mind, the Fund continued at the portfolio level to be positioned generally defensively at fiscal year end, based on our opinion of relative value opportunities among asset classes.
 
3
 


Performance summary
 
Delaware Investments® Global Dividend and Income Fund, Inc.
 
The performance data quoted represent past performance; past performance does not guarantee future results. Investment return and principal value will fluctuate so your shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Funds that invest in bonds can lose their value as interest rates rise, and an investor can lose principal. Please obtain the performance data for the most recent month end by calling 800 523-1918.
 
Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt.
 
 
Fund performance
Average annual total returns
Through Nov. 30, 2009 1 year            5 years            10 years            Lifetime
At market price 77.48% 1.49% 6.83%   6.44%
At net asset value 49.69% 0.81% 5.74% 4.65%
 
Instances of high double-digit returns are unusual, cannot be sustained, and were primarily achieved during favorable market conditions.
 
Diversification may not protect against market risk.
 
Narrowly focused investments may exhibit higher volatility than investments in multiple industry sectors. REIT investments are subject to many of the risks associated with direct real estate ownership, including changes in economic conditions, credit risk, and interest rate fluctuations.
 
International investments entail risks not ordinarily associated with U.S. investments including fluctuation in currency values, differences in accounting principles, or economic or political instability in other nations. Investing in emerging markets can be riskier than investing in established foreign markets due to increased volatility and lower trading volume.
 
Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt. The Fund may also be subject to prepayment risk, the risk that the principal of a fixed income security that is held by the Fund may be prepaid prior to maturity, potentially forcing the Fund to reinvest that money at a lower interest rate. High yielding, noninvestment grade bonds (junk bonds) involve higher risk than investment grade bonds.
 
The Fund may invest in derivatives, which may involve additional expenses and are subject to risk, including the risk that an underlying security or securities index moves in the opposite direction from what the portfolio manager anticipated. A derivative transaction depends upon the counterparties’ ability to fulfill their contractual obligations.
 
If and when we invest in forward foreign currency contracts or use other investments to hedge against currency risks, the Fund will be subject to special risks, including counterparty risk.
 
The “Fund performance” table and the “Performance of a $10,000 investment” graph do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
 
Returns reflect the reinvestment of all distributions. 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 policy. Shares of the Fund were initially offered with a sales charge of 6%. Performance since inception does not include the sales charge or any other brokerage commission for purchases made since inception. Past performance is not a guarantee of future results.
 
 
Fund basics
As of Nov. 30, 2009
 
Fund objectives
The Fund seeks to achieve high current income. Capital appreciation is a secondary objective.
 
Total Fund net assets
$35 million
 
Number of holdings
494

Fund start date
March 4, 1994
 
NYSE symbol
DGF

4
 


Market price versus net asset value (see notes below)
Nov. 30, 2008, through Nov. 30, 2009
 
 
Starting value Ending value
(Nov. 30, 2008)       (Nov. 30, 2009)

   Delaware Investments® Global Dividend and Income Fund, Inc. @ NAV $5.36   $7.05

   Delaware Investments Global Dividend and Income Fund, Inc. @ Market price $4.24   $6.60
 
Performance of a $10,000 Investment
Average annual total returns from Nov. 30, 1999, through Nov. 30, 2009
 
 
 
Starting value Ending value
   (Nov. 30, 1999)       (Nov. 30, 2009)

Delaware Investments Global Dividend and Income Fund, Inc. @ Market price $10,000   $19,366


Delaware Investments Global Dividend and Income Fund, Inc. @ NAV $10,000   $17,432

Lipper Closed-end Income and Preferred Stock Funds Average @ Market price $10,000   $15,411


Lipper Closed-end Income and Preferred Stock Funds Average @ NAV $10,000   $13,327
 
The chart assumes $10,000 invested in the Fund on Nov. 30, 1999, and includes the reinvestment of all distributions at market value. The chart assumes $10,000 invested in the Lipper Closed-end Income and Preferred Stock Funds Average at market price and at NAV. Performance of the Fund and the Lipper class at market value is based on market performance during the period. Performance of the Fund and Lipper class at NAV is based on the fluctuations in NAV during the period. Delaware Investments Global Dividend and Income Fund, Inc. was initially offered with a sales charge of 6%. Performance shown in both charts above does not include fees, the initial sales charge, or any brokerage commissions for purchases. Investments in the Fund are not available at NAV.
 
The Lipper Closed-end Income and Preferred Stock Funds Average represents the average return of closed-end income and preferred stock mutual funds tracked by Lipper (source: Lipper).
 
Market price is the price an investor would pay for shares of the Fund on the secondary market. NAV is the total value of one fund share, generally equal to a fund’s net assets divided by the number of shares outstanding.
 
Past performance is not a guarantee of future results.
 
5
 


Security type and country allocations
 
Delaware Investments® Global Dividend and Income Fund, Inc.
 
As of November 30, 2009
 
Sector designations may be different than the sector designations presented in other Fund materials. The sector designations may represent the investment manager’s internal sector classifications, which may result in the sector designations for one fund being different than another fund’s sector designations.
 
Percentage
Security Type of Net Assets
Common Stock 66.28 %
Consumer Discretionary 8.76 %
Consumer Staples 7.69 %
Diversified REITs 0.54 %
Energy 6.42 %
Financials 6.70 %
Health Care 8.16 %
Health Care REITs 1.14 %
Hotel REIT 0.15 %
Industrial REITs 0.13 %
Industrials 7.80 %
Information Technology 5.53 %
Mall REITs 0.61 %
Materials 3.70 %
Mortgage REITs 0.19 %
Multifamily REITs 0.45 %
Office REITs 0.87 %
Real Estate Management & Development 0.18 %
Self-Storage REIT 0.26 %
Shopping Center REITs 0.25 %
Specialty REITs 0.41 %
Telecommunications 3.92 %
Utilities 2.42 %
Convertible Preferred Stock 1.93 %
Preferred Stock 0.13 %
Agency Mortgage-Backed Securities 0.83 %
Convertible Bonds 10.51 %
Aerospace & Defense 0.55 %
Automobiles 0.20 %
Banking, Finance & Insurance 0.13 %
Basic Materials 0.73 %
Building & Materials 0.10 %
Cable, Media & Publishing 0.15 %
Computers & Technology 1.81 %
Electronics & Electrical Equipment 0.10 %
Energy 0.29 %
Health Care & Pharmaceuticals 1.86 %
Leisure, Lodging & Entertainment 0.47 %
Real Estate 1.28 %
Retail 0.16 %
Telecommunications 2.02 %
Transportation 0.30 %
Utilities 0.36 %
Corporate Bonds 32.47 %
Banking 1.39 %
Basic Industry 2.59 %
Brokerage 0.24 %
Capital Goods 1.50 %
Consumer Cyclical 2.81 %
Consumer Non-Cyclical 1.58 %
Energy 2.52 %
Finance & Investments 7.44 %
Media 4.23 %
Real Estate 0.11 %
Services Cyclical 1.64 %
Services Non-Cyclical 1.42 %
Technology & Electronics 0.65 %
Telecommunications 3.16 %
Utilities 1.19 %
Regional Authority 0.02 %
Senior Secured Loans 0.26 %
Sovereign Debt 2.92 %
Supranational Banks 5.87 %
U.S. Treasury Obligation 0.41 %
Exchange Traded Fund 0.01 %
Limited Partnerships 0.11 %
Warrant 0.00 %
Discount Note 4.49 %
Securities Lending Collateral 9.42 %
Total Value of Securities 135.66 %
Obligation to Return Securities Lending Collateral (9.67 %)
Borrowing Under Line of Credit (30.85 %)
Receivables and Other Assets Net of Liabilities 4.86 %
Total Net Assets 100.00 %

6
 

 

Percentage
Country of Net Assets
Australia 1.13 %
Austria 0.07 %
Bermuda 1.06 %
Brazil 2.06 %
Canada 6.51 %
Denmark 0.51 %
Finland 0.58 %
France 6.16 %
Germany 2.91 %
Hong Kong 2.43 %
Ireland 6.20 %
Italy 2.01 %
Japan 3.39 %
Liberia 0.06 %
Luxembourg 1.02 %
Marshall Islands 0.06 %
Mexico 0.04 %
Netherlands 0.82 %
Poland 1.42 %
Republic of Korea 0.58 %
Singapore 0.83 %
Spain 0.75 %
Supranational 5.87 %
Sweden 1.46 %
Switzerland 1.29 %
Taiwan 0.57 %
United Kingdom 4.28 %
United States 67.68 %
Total 121.75 %*

*The percentage of net assets exceeds 100% because the Fund utilizes a line of credit with The Bank of New York Mellon, as described in note 7 in “Notes to financial statements.” The Fund utilizes leveraging techniques in an attempt to obtain a higher return for the Fund. There is no assurance that the Fund will achieve its investment objectives through the use of such techniques.
 
7
 


Statement of net assets
 
Delaware Investments® Global Dividend and Income Fund, Inc.
 
November 30, 2009
 
       Number of         Value
          Shares (U.S. $)
Common Stock – 66.28%v
Consumer Discretionary – 8.76%
Autoliv 6,700 $ 272,087
∏= Avado Brands 272 0
* Bayerische Motoren Werke 5,354 253,357
DIRECTV Class A 350 11,071
* Don Quijote 8,300 209,780
* Esprit Holdings 34,607 232,654
Lowe’s 13,800   300,977
Mattel 15,300 297,737
* PPR 1,884 227,973
Publicis Groupe 5,022 193,314
* Round One 13,801 81,417
Techtronic Industries 241,000 193,115
Toyota Motor 4,721 187,857
Vivendi 10,086 290,577
WPP Group 13,338 124,738
Yue Yuen Industrial Holdings 60,000   169,165
3,045,819
Consumer Staples – 7.69%
Archer-Daniels-Midland 10,800 332,748
Coca-Cola Amatil 26,384 256,080
CVS Caremark 9,700 300,797
@ Greggs 24,133 172,298
Heinz (H.J.) 6,200 263,190
Kimberly-Clark 4,400 290,268
Kraft Foods Class A 9,500 252,510
Metro 3,889 244,344
Parmalat 90,954 264,632
Safeway 13,100 294,750
2,671,617
Diversified REITs – 0.54%
* Digital Realty Trust 1,200 58,392
Liberty Property Trust 600 17,784
Vornado Realty Trust 1,722 112,722
188,898
Energy – 6.42%
BP 19,174 181,305
Chevron 3,900 304,355
CNOOC 163,000 251,130
ConocoPhillips 5,800 300,266
Marathon Oil 8,800 287,056
National Oilwell Varco 6,500 279,630
Petroleo Brasileiro ADR 6,100 274,866
* Total 2,833 175,274
Transocean 2,100 179,319
2,233,201
Financials – 6.70%
Allstate 9,900 281,259
* AXA 8,488 202,232
Banco Santander 15,213 260,596
Bank of New York Mellon 9,700 258,408
Blackstone Group 1,000 13,840
Global Brands Acquisition 1,700 16,677
Mitsubishi UFJ Financial Group 49,039   273,416
Nordea Bank FDR 22,625 234,372
Standard Chartered 9,422 230,015
Travelers 6,800 356,251
UniCredit 63,373 216,448
2,329,674
Health Care – 8.16%
Alliance HealthCare Services 1,368 8,099
Astellas Pharma 5,600 206,640
AstraZeneca 2,196 98,171
Bristol-Myers Squibb 12,200 308,782
Cardinal Health 10,800 348,084
Johnson & Johnson 4,200 263,928
Merck 10,519 380,895
Novartis 4,821 267,540
Novo-Nordisk Class B 2,634 176,688
Pfizer 21,816 396,396
Quest Diagnostics 4,500 260,730
Sanofi-Aventis 1,583 119,588
2,835,541
Health Care REITs – 1.14%
HCP 3,100 97,030
Health Care REIT 1,975 87,986
LTC Properties 800 20,568
Nationwide Health Properties 1,800 61,218
Omega Healthcare Investors 1,600 28,944
Ventas 2,325 99,813
395,559
Hotel REIT – 0.15%
Host Hotels & Resorts 4,750 49,970
49,970
Industrial REITs – 0.13%
AMB Property 385 9,067
ProLogis 2,800 36,624
45,691
Industrials – 7.80%
* Asahi Glass 25,000 218,334
* Cie de Saint-Gobain 5,184 281,930
Delta Air Lines 1 8
Deutsche Post 13,263 248,299
Finmeccanica 13,224 218,981
Flextronics International 1,000 7,070
* Grupo Aeroportuario del
       Centro Norte ADR 1,200 14,652
* Koninklijke Philips Electronics 10,464 286,150
*† Mobile Mini 363 5,521
Northrop Grumman 5,500 301,401
∏= PT Holdings 100 1
Singapore Airlines 23,550 226,311
Teleperformance 8,116 269,279
Tomkins 74,029 209,220

8
 


          Number of         Value
       Shares (U.S. $)
Common Stock (continued)
Industrials (continued)
Vallourec 946 $ 158,214
Waste Management 8,100   266,004
2,711,375
Information Technology – 5.53%
CGI Group Class A 38,686 478,284
Intel 17,200 330,240
International Business Machines 2,800 353,780
Motorola 33,700 269,937
* Nokia 15,331 201,854
Xerox 37,500 288,750
1,922,845
Mall REITs – 0.61%
* Macerich 1,542 45,890
* Simon Property Group 2,299   167,045
212,935
Materials – 3.70%
Agrium 4,500 251,370
ArcelorMittal 3,164 123,265
duPont (E.I.) deNemours 8,700 300,846
* Lafarge 2,727 224,067
Linde 2,167 265,959
* Vale ADR 4,200 120,414
1,285,921
Mortgage REITs – 0.19%
Annaly Capital Management 400 7,364
Chimera Investment 4,900 19,747
Cypress Sharpridge Investments 3,000 39,300
66,411
Multifamily REITs – 0.45%
Apartment Investment &
       Management 1,732 23,399
BRE Properties 1,000 31,330
Camden Property Trust 640 24,800
Equity Residential 2,400 77,304
156,833
Office REITs – 0.87%
* Alexandria Real Estate Equities 800 45,096
* Boston Properties 800 53,584
Brandywine Realty Trust 2,300 22,586
Government Properties Income Trust 900 22,473
Highwoods Properties 1,200 36,732
Mack-Cali Realty 4,000 122,760
303,231
Real Estate Management & Development – 0.18%
Starwood Property Trust 3,200 62,080
62,080
Self-Storage REIT – 0.26%
Public Storage 1,150 91,517
91,517
Shopping Center REITs – 0.25%
Cedar Shopping Centers 1,100 6,644
* Federal Realty Investment Trust 100 6,432
Kimco Realty 4,700   57,904
Ramco-Gershenson Properties Trust 1,700 15,470
86,450
Specialty REITs – 0.41%
Entertainment Properties Trust 1,200 37,908
* Plum Creek Timber 1,520 52,425
Potlatch 1,730 50,931
141,264
Telecommunications – 3.92%
AT&T 9,600 258,624
=† Century Communications 125,000 0
Chunghwa Telecom ADR 11,077 197,060
Frontier Communications 4,600 36,340
GeoEye 100 3,117
Telstra 36,770 114,809
TELUS 7,556 244,816
Verizon Communications 8,900 279,994
Vodafone Group 100,273 226,152
1,360,912
Utilities – 2.42%
Edison International 9,300 316,665
Mirant 53 755
National Grid 22,747 247,159
NorthWestern 700 18,053
Progress Energy 6,600 257,994
840,626
Total Common Stock (cost $23,400,240) 23,038,370
 
Convertible Preferred Stock – 1.93%
Banking, Finance & Insurance – 0.53%
Aspen Insurance Holdings
       5.625% exercise price $29.28,
       expiration date 12/31/49 3,400 181,900
@ Fannie Mae 8.75% exercise
       price $32.45, expiration
       date 5/13/11 1,500 2,100
184,000
Cable, Media & Publishing – 0.27%
# Interpublic Group 144A
       5.25% exercise price $13.66,
       expiration date 12/31/49 140 95,935
95,935
Energy – 0.33%
El Paso Energy Capital Trust I
       4.75% exercise price $41.59,
       expiration date 3/31/28 1,950 65,637
Whiting Petroleum 6.25%
       exercise price $43.42,
       expiration date 12/31/49 300 48,288
113,925
 
(continues)     9
 


Statement of net assets
 
Delaware Investments® Global Dividend and Income Fund, Inc.
 
          Number of Value
     Shares      (U.S. $)
Convertible Preferred Stock (continued)
Health Care & Pharmaceuticals – 0.32%     
  Mylan 6.50%
          exercise price $17.08,
          expiration date 11/15/10       100   $ 111,650
111,650
Telecommunications – 0.48%
Crown Castle International
          6.50% exercise price $36.88,
          expiration date 8/15/12 1,350 77,963
Lucent Technologies Capital Trust I
          7.75% exercise price $24.80,
          expiration date 3/15/17 120 88,830
166,793
Total Convertible Preferred Stock
(cost $768,083) 672,303
 
Preferred Stock – 0.13%
Banking, Finance & Insurance – 0.11%
· Bank of America
          8.00% 40,000 34,889
          8.125% 5,000 4,361
39,250
Industrials – 0.00%
=† Port Townsend 20 0
0
Real Estate – 0.02%
W2007 Grace Acquisitions 8.75% 10,000 6,000
6,000
Total Preferred Stock (cost $310,615) 45,250
 
Principal
Amount°
Agency Mortgage-Backed Security – 0.83%
Fannie Mae S.F. 30 yr TBA
          4.50% 12/1/39 USD 280,000 287,481
Total Agency Mortgage-Backed
Security (cost $281,881) 287,481
 
Convertible Bonds – 10.51%
Aerospace & Defense – 0.55%
# AAR 144A 1.75%
          exercise price $29.43,
          expiration date 1/1/26 90,000 83,363
# L-3 Communications
          Holdings 144A 3.00%
          exercise price $100.14,
          expiration date 8/1/35 105,000 107,887
191,250
Automobiles – 0.20%
Ford Motor 4.25%
          exercise price $9.30,
          expiration date 11/15/16 60,000 68,625
68,625
Banking, Finance & Insurance – 0.13%
Jefferies Group 3.875%
          exercise price $39.20,
          expiration date 11/1/29 50,000 46,625
46,625
Basic Materials – 0.73%
Century Aluminum 1.75%
          exercise price $30.54,
          expiration date 8/1/24 5,000 4,644
Rayonier TRS Holdings 3.75%
          exercise price $54.81,
          expiration date 10/15/12 135,000 141,412
# Sino-Forest 144A 5.00%
          exercise price $20.29,
          expiration date 8/1/13 95,000 108,063
254,119
Building & Materials – 0.10%
Beazer Homes USA 4.625%
          exercise price $49.64,
          expiration date 6/15/24 37,000 33,948
33,948
Cable, Media & Publishing – 0.15%
Interpublic Group 4.25%
          exercise price $12.42,
          expiration date 3/15/23 15,000 14,663
VeriSign 3.25%
          exercise price $34.37,
          expiration date 8/15/37 45,000 37,687
  52,350
Computers & Technology – 1.81%
Advanced Micro Devices
        *6.00% exercise price $28.08,
          expiration date 5/1/15 90,000 79,425
          #144A 6.00% exercise price
          $28.08, expiration date 5/1/15 165,000 145,613
Euronet Worldwide 3.50%
          exercise price $40.48,
          expiration date 10/15/25 165,000 152,830
Hutchinson Technology 3.25%
          exercise price $36.43,
          expiration date 1/15/26 120,000 91,050
*# Intel 144A 3.25%
          exercise price $22.68,
          expiration date 8/1/39 30,000 33,338
Linear Technology 3.00%
          exercise price $46.12,
          expiration date 5/1/27 50,000 48,813
SanDisk 1.00%
          exercise price $82.35,
          expiration date 5/15/13 100,000 78,750
629,819
Electronics & Electrical Equipment – 0.10%
Flextronics International 1.00%
          exercise price $15.53,
          expiration date 8/1/10 35,000 34,519
34,519

10
 


Principal Value
     Amount°      (U.S. $)
Convertible Bonds (continued)     
Energy – 0.29%
          Chesapeake Energy 2.25%
          exercise price $85.89,
          expiration date 12/15/38 USD 90,000 $ 67,163
Peabody Energy 4.75%
          exercise price $58.44,  
          expiration date 12/15/41 35,000 34,475
101,638
Health Care & Pharmaceuticals – 1.86%    
# Allergan 144A 1.50%
          exercise price $63.33,
          expiration date 4/1/26 150,000 168,749
Amgen 0.375%  
          exercise price $79.48,  
          expiration date 2/1/13 85,000   85,000
         #144A 0.375%
          exercise price $79.48,
          expiration date 2/1/13 60,000 60,000
Φ Hologic 2.00%
          exercise price $38.59,
          expiration date 12/15/37 105,000 85,575
Inverness Medical Innovations
          3.00% exercise price $43.98,
          expiration date 5/15/16 85,000 97,644
LifePoint Hospitals 3.50%
          exercise price $51.79,
          expiration date 5/14/14 40,000 35,950
Medtronic 1.625%
          exercise price $55.41,
          expiration date 4/15/13 110,000 112,337
  645,255
Leisure, Lodging & Entertainment – 0.47%
# Gaylord Entertainment
          144A 3.75%
          exercise price $27.25,
          expiration date 9/29/14 90,000 85,275
# International Game
          Technology 144A 3.25%
          exercise price $19.97,
          expiration date 5/1/14 65,000 79,788
165,063
Real Estate – 1.28%
# Corporate Office Properties
          144A 3.50%
          exercise price $53.12,
          expiration date 9/15/26 75,000 71,063
Developers Diversified
          Realty 3.00%
          exercise price $74.75,
          expiration date 3/15/12 15,000 13,781
# Digital Realty Trust 144A 5.50%
          exercise price $43.00,
          expiration date 4/15/29 90,000 115,762
@ MeriStar Hospitality 9.50%
          exercise price $10.18,
          expiration date 4/1/10 85,000 87,253
National Retail Properties
          5.125% exercise price
          $25.42, expiration
          date 6/15/28 85,000 87,444
Vornado Realty Trust 2.85%
          exercise price $157.18,
          expiration date 3/15/27 70,000 70,350
445,653
Retail – 0.16%
Pantry 3.00%
          exercise price $50.09,
          expiration date 11/15/12 65,000 54,681
54,681
Telecommunications – 2.02%
Alaska Communications
          System Group 5.75%
          exercise price $12.90,
          expiration date 3/1/13 105,000 95,025
Leap Wireless International
          4.50% exercise price $93.21,
          expiration date 7/15/14 35,000 27,650
Level 3 Communications 5.25%
          exercise price $3.98,
          expiration date 12/15/11 105,000 95,813
NII Holdings 3.125%
          exercise price $118.32,
          expiration date 6/15/12 155,000 140,855
Qwest Communications
          International 3.50%
          exercise price $5.01,
          expiration date 11/15/25 160,000 160,599
# SBA Communications 144A 4.00%
          exercise price $30.38,
          expiration date 10/1/14 65,000 81,738
# Virgin Media 144A 6.50%
          exercise price $19.22,
          expiration date 11/15/16 85,000 99,238
700,918
Transportation – 0.30%
Bristow Group 3.00%
          exercise price $77.34,
          expiration date 6/15/38 120,000 103,800
103,800
Utilities – 0.36%
Dominion Resources 2.125%
          exercise price $36.14,
          expiration date 12/15/23 110,000 124,850
124,850
Total Convertible Bonds
(cost $3,532,464) 3,653,113

(continues)     11
 


Statement of net assets
 
Delaware Investments® Global Dividend and Income Fund, Inc.
 
Principal Value
     Amount°      (U.S. $)
Corporate Bonds – 32.47%       
Banking – 1.39%
· BAC Capital Trust XIV  
                    5.63% 12/31/49 USD 45,000 $ 30,038
Capital One Capital V
          10.25% 8/15/39     30,000 33,082
· Citigroup Capital XXI
          8.30% 12/21/57 15,000 13,425
# GMAC 144A
          6.00% 12/15/11 30,000 28,538
          6.625% 5/15/12 17,000 16,256
          6.875% 9/15/11 50,000 48,625
          6.875% 8/28/12 42,000 40,215
JPMorgan Chase Capital XXV
          6.80% 10/1/37 202,000 199,859
@ Popular North America Capital  
          Trust I 6.564% 9/15/34 20,000 14,708
· USB Capital IX 6.189% 10/29/49 25,000 19,750
Zions Bancorporation
          5.50% 11/16/15 15,000 10,437
          6.00% 9/15/15 30,000 20,900
          7.75% 9/23/14 10,000 8,909
484,742
Basic Industry – 2.59%
# Algoma Acqusition 144A
          9.875% 6/15/15 25,000 21,375
ArcelorMittal 6.125% 6/1/18 72,000 73,620
California Steel Industries
          6.125% 3/15/14 30,000 28,050
Century Aluminum 7.50% 8/15/14 30,000 27,750
# Drummond 144A 9.00% 10/15/14 40,000 41,000
# FMG Finance 144A
          10.625% 9/1/16 20,000 21,900
Freeport McMoRan Copper &
          Gold 8.25% 4/1/15 31,000 33,283
* Hexion US Finance
          9.75% 11/15/14 32,000 30,880
# Innophos Holdings 144A
          9.50% 4/15/12 30,000 30,150
International Coal Group
          10.25% 7/15/14 45,000 43,875
# MacDermid 144A
          9.50% 4/15/17 78,000 77,610
# Momentive Performance
          Materials 144A
          12.50% 6/15/14 20,000 22,000
# Murray Energy 144A
          10.25% 10/15/15 30,000 29,550
Nalco 8.875% 11/15/13 50,000 51,500
# NewPage144A 11.375% 12/31/14 40,000 39,600
· Noranda Aluminum Acquisition
          PIK 5.274% 5/15/15 42,747 31,205
Norske Skog Canada
          8.625% 6/15/11 15,000 11,213
Novelis
          7.25% 2/15/15 20,000 18,150
        #144A 11.50% 2/15/15 15,000 15,675
@= Port Townsend 7.32% 8/27/12 29,312 21,251
Potlatch 12.50% 12/1/09 88,000 87,999
Ryerson
        ·7.656% 11/1/14 25,000 22,188
          12.00% 11/1/15 10,000 10,225
# Sappi Papier Holding 144A
          6.75% 6/15/12 25,000 23,276
# Steel Dynamics 144A
          8.25% 4/15/16 50,000 50,750
# Teck Resources 144A
          10.25% 5/15/16 15,000 17,025
          10.75% 5/15/19 15,000 17,588
898,688
Brokerage – 0.24%
E Trade Financial PIK
          12.50% 11/30/17 26,563 30,016
LaBranche 11.00% 5/15/12 56,000 54,040
84,056
Capital Goods – 1.50%
AMH Holdings 11.25% 3/1/14 15,000 14,138
Associated Materials
          9.75% 4/15/12 25,000 25,406
          #144A 9.875% 11/15/16 5,000 5,250
Building Materials Corporation
          of America 7.75% 8/1/14 25,000 24,875
# BWAY 144A 10.00% 4/15/14 30,000 31,575
# CPM Holdings 144A
          10.625% 9/1/14 5,000 5,250
Crown Americas Capital
          7.625% 11/15/13 25,000 25,719
Eastman Kodak 7.25% 11/15/13 25,000 20,000
Graham Packaging Capital I
          9.875% 10/15/14 60,000 61,199
# Graphic Packaging International
          144A 9.50% 6/15/17 25,000 26,500
Intertape Polymer 8.50% 8/1/14 26,000 20,410
JSG Funding 7.75% 4/1/15 45,000 43,200
# Plastipak Holdings 144A
          8.50% 12/15/15 20,000 20,075
          10.625% 8/15/19 10,000 11,050
Pregis 12.375% 10/15/13 59,000 56,345
* RBS Global/Rexnord 11.75% 8/1/16 45,000 44,325
* Solo Cup 8.50% 2/15/14 30,000 29,025
Thermadyne Holdings
          10.50% 2/1/14 30,000 26,250
USG
          6.30% 11/15/16 25,000 21,813
        #144A 9.75% 8/1/14 10,000 10,525
522,930

12
 


Principal Value
     Amount°      (U.S. $)
Corporate Bonds (continued)     
Consumer Cyclical – 2.81%
# Allison Transmission 144A
                    11.00% 11/1/15 USD   45,000 $ 46,800
ArvinMeritor 8.125% 9/15/15 35,000 32,025
Beazer Homes USA
          8.625% 5/15/11 40,000 39,000
Burlington Coat Factory
          Investment Holdings  
          14.50% 10/15/14 60,000 60,450
* Burlington Coat Factory
          Warehouse 11.125% 4/15/14 15,000 15,600
Carrols 9.00% 1/15/13 10,000 10,100
Denny’s Holdings 10.00% 10/1/12 15,000   15,375
Ford Motor 7.45% 7/16/31   40,000 34,250
Ford Motor Credit 12.00% 5/15/15   100,000 115,367
Goodyear Tire & Rubber
        *9.00% 7/1/15 25,000 25,688
          10.50% 5/15/16 10,000 10,800
Interface
          9.50% 2/1/14 5,000 4,981
        #144A 11.375% 11/1/13 10,000 10,988
# Invista 144A 9.25% 5/1/12 25,000 25,500
K Hovnanian Enterprises
          6.25% 1/15/15 10,000 7,250
          7.50% 5/15/16 15,000 10,875
       *#144A 10.625% 10/15/16 15,000 15,375
# Landry’s Restaurants 144A
          11.625% 12/1/15 60,000 61,199
          14.00% 8/15/11 15,000 15,150
M/I Homes 6.875% 4/1/12 20,000 18,700
Macy’s Retail Holdings
          6.375% 3/15/37 30,000 25,500
          6.70% 7/15/34 5,000 4,250
          7.875% 8/15/36 10,000 8,800
          10.625% 11/1/10 10,000 10,550
Meritage Homes
          6.25% 3/15/15 5,000 4,575
          7.00% 5/1/14 25,000 23,875
Mobile Mini 6.875% 5/1/15 35,000 32,900
Navistar International
          8.25% 11/1/21 40,000 39,500
Norcraft Holdings Capital
          9.75% 9/1/12 30,000 28,650
OSI Restaurant Partners
          10.00% 6/15/15 22,000 19,140
Rite Aid 9.375% 12/15/15 40,000 33,700
Sally Holdings Capital
          10.50% 11/15/16 50,000 53,750
# Sealy Mattress 144A
          10.875% 4/15/16 10,000 11,050
# Standard Pacific Escrow 144A
          10.75% 9/15/16 15,000 14,925
* Tenneco Automotive
          8.625% 11/15/14 35,000 34,475
# Toys R Us Property 144A
          10.75% 7/15/17 20,000 21,450
*# TRW Automotive 144A
          8.875% 12/1/17 35,000 35,088
977,651
Consumer Non-Cyclical – 1.58%
Accellent 10.50% 12/1/13 30,000 29,025
# Alliance One International 144A
          10.00% 7/15/16 30,000 31,650
Bausch & Lomb 9.875% 11/1/15 40,000 41,300
# Cott Beverages 144A
          8.375% 11/15/17 25,000 25,063
DJO Finance 10.875% 11/15/14 20,000 21,150
# Dole Foods 144A
          8.00% 10/1/16 5,000 5,075
          13.875% 3/15/14 13,000 15,340
# Ingles Markets 144A
          8.875% 5/15/17 20,000 20,650
Inverness Medical Innovations
          9.00% 5/15/16 25,000 25,438
# JBS USA Finance 144A
          11.625% 5/1/14 25,000 27,906
# JohnsonDiversey Holdings 144A
          10.50% 5/15/20 80,000 78,999
LVB Acquisition
          11.625% 10/15/17 15,000 16,388
          PIK 10.375% 10/15/17 15,000 16,163
# M-Foods Holdings 144A
          9.75% 10/1/13 10,000 10,450
# ServiceMaster 144A
          10.75% 7/15/15 50,000 50,749
Smithfield Foods
          7.75% 5/15/13 35,000 32,638
        #144A 10.00% 7/15/14 10,000 10,525
# Tops Markets 144A
          10.125% 10/15/15 30,000 30,900
Universal Hospital Services PIK
          8.50% 6/1/15 20,000 19,800
Yankee Acquisition 9.75% 2/15/17 40,000 38,400
547,609
Energy – 2.52%
AmeriGas Partners
          7.125% 5/20/16 7,000 6,895
#Antero Resources Finance 144A
          9.375% 12/1/17 30,000 30,225
Chesapeake Energy
          9.50% 2/15/15 10,000 10,525
Complete Production Service
          8.00% 12/15/16 25,000 24,625
Copano Energy Finance
          7.75% 6/1/18 30,000 30,000
Denbury Resources
          7.50% 4/1/13 5,000 5,025
          9.75% 3/1/16 15,000 15,938
Dynegy Holdings 7.75% 6/1/19 35,000 28,788
El Paso
          6.875% 6/15/14 21,000 20,790
          7.00% 6/15/17 5,000 4,925
# El Paso Performance-Linked Trust
          144A 7.75% 7/15/11 46,000 46,975

(continues)     13
 


Statement of net assets
 
Delaware Investments® Global Dividend and Income Fund, Inc.
 
Principal Value
     Amount°      (U.S. $)
Corporate Bonds (continued)     
Energy (continued)
          Enterprise Products Operating
          ·8.375% 8/1/66 USD 5,000   $ 4,875
          9.75% 1/31/14     50,000 60,943
Forest Oil 7.25% 6/15/19 20,000 19,050
*# Headwaters 144A  
          11.375% 11/1/14 40,000 41,099
# Helix Energy Solutions Group
          144A 9.50% 1/15/16 35,000 35,613
# Hercules Offshore 144A
          10.50% 10/15/17 30,000 30,450
# Hilcorp Energy I 144A
          7.75% 11/1/15 7,000 6,773
          9.00% 6/1/16 27,000 27,203
# Holly 144A 9.875% 6/15/17 35,000 36,488
Inergy Finance
          6.875% 12/15/14 52,000 50,569
          8.25% 3/1/16 20,000 20,250
Key Energy Services
          8.375% 12/1/14 40,000 39,250
Mariner Energy 8.00% 5/15/17 60,000 56,999
MarkWest Energy Partners/
          Finance 8.75% 4/15/18 35,000 35,438
OPTI Canada
          7.875% 12/15/14 30,000 24,000
          8.25% 12/15/14 8,000 6,440
PetroHawk Energy
          7.875% 6/1/15 15,000 15,038
          9.125% 7/15/13 17,000 17,723
Petroleum Development
          12.00% 2/15/18 30,000 30,450
Plains Exploration & Production
          8.625% 10/15/19 10,000 10,075
Quicksilver Resources
          7.125% 4/1/16 30,000 27,225
          11.75% 1/1/16 10,000 11,163
Regency Energy Partners
          8.375% 12/15/13 13,000 13,423
# SandRidge Energy 144A
          9.875% 5/15/16 30,000 30,900
876,148
Finance & Investments – 7.44%
Cardtronics 9.25% 8/15/13 37,000 37,833
General Electric Capital
         ·2.07% 2/2/11 NOK   1,000,000 171,948
        @5.125% 1/28/14 SEK   1,000,000 147,372
GE Capital European Funding
          5.25% 5/18/15 EUR   1,200,000 1,926,114
@ GE Capital UK Funding
          4.625% 1/18/16 GBP 114,000 183,911
International Lease Finance
          5.25% 1/10/13 USD 20,000 16,130
          5.35% 3/1/12 5,000 4,267
          5.55% 9/5/12 10,000 8,059
          5.625% 9/20/13 25,000 19,691
          6.375% 3/25/13 5,000 4,028
          6.625% 11/15/13 15,000 12,117
@# Nuveen Investments 144A
          10.50% 11/15/15 62,000 54,870
2,586,340
Media – 4.23%
Affinion Group I 11.50% 10/15/15 15,000 15,675
# Cablevision Systems 144A
          8.625% 9/15/17 15,000 15,450
# Cengage Learning Acquisitions
          144A 10.50% 1/15/15 20,000 18,650
# Cequel Communications
          Holdings Capital 144A
          8.625% 11/15/17 20,000 19,800
# Charter Communications
          Operating 144A
          8.00% 4/30/12 10,000 10,225
          8.375% 4/30/14 15,000 15,338
          10.875% 9/15/14 80,000 89,499
DISH DBS
          7.875% 9/1/19 10,000 10,125
        #144A 7.875% 9/1/19 30,000 30,375
# MDC Partners 144A
          11.00% 11/1/16 20,000 20,100
# Mediacom Capital 144A
          9.125% 8/15/19 20,000 20,400
Nielsen Finance
          10.00% 8/1/14 30,000 31,125
          11.50% 5/1/16 10,000 10,800
       Ω12.50% 8/1/16 15,000 13,200
        #144A 11.625% 2/1/14 5,000 5,400
Shaw Communications
          6.75% 11/9/39 CAD   1,000,000 964,065
*# Sinclair Television Group 144A
          9.25% 11/1/17 USD 30,000 30,563
# Terremark Worldwide 144A
          12.00% 6/15/17 15,000 16,444
# Univision Communications 144A
          12.00% 7/1/14 25,000 27,313
Videotron 9.125% 4/15/18 15,000 16,125
XM Satellite Radio Holdings
       #144A 13.00% 8/1/13 35,000 36,488
          PIK 10.00% 6/1/11 55,000 52,800
1,469,960
Real Estate – 0.11%
Developers Diversified Realty
          9.625% 3/15/16 5,000 5,212
# Felcor Lodging Trust 144A
          10.00% 10/1/14 35,000 34,300
39,512
Services Cyclical – 1.64%
ARAMARK 8.50% 2/1/15 23,000 23,173
Avis Budget Car Rental
          7.625% 5/15/14 40,000 37,000
          7.75% 5/15/16 20,000 18,000

14
 


Principal Value
    Amount°      (U.S. $)
Corporate Bonds (continued)            
Services Cyclical (continued)
          Delta Air Lines
          7.92% 11/18/10 USD 15,000 $ 15,000
           #144A 9.50% 9/15/14 15,000 15,300
FTI Consulting 7.625% 6/15/13 5,000 5,025
Gaylord Entertainment
          6.75% 11/15/14 20,000 18,200
# General Maritime 144A
          12.00% 11/15/17 20,000 20,850
Global Cash Access 8.75% 3/15/12 10,000 9,838
# Harrahs Operating Escrow 144A
          11.25% 6/1/17 60,000 61,499
* Hertz 10.50% 1/1/16 20,000 20,900
MGM MIRAGE
          *6.625% 7/15/15 10,000 7,500
          7.50% 6/1/16 25,000 19,063
          *7.625% 1/15/17 50,000 38,250
          13.00% 11/15/13 25,000 28,469
Mohegan Tribal Gaming Authority
          7.125% 8/15/14 25,000 15,875
*# NCL 144A 11.75% 11/15/16 20,000 19,825
@‡ Northwest Airlines 10.00% 2/1/10 15,000 113
PHH 7.125% 3/1/13 30,000 28,125
Pinnacle Entertainment
          7.50% 6/15/15 50,000 44,749
@# Pokagon Gaming Authority
          144A 10.375% 6/15/14 15,000 15,713
Royal Caribbean Cruises
          6.875% 12/1/13 20,000 18,900
RSC Equipment Rental
          9.50% 12/1/14 40,000 39,349
          #144A 10.25% 11/15/19 20,000 19,500
# Shingle Springs Tribal Gaming
          Authority 144A
          9.375% 6/15/15 40,000 29,200
569,416
Services Non-Cyclical – 1.42%
Alliance Healthcare Services
          7.25% 12/15/12 30,000 30,075
          #144A 8.00% 12/1/16 20,000 19,800
Allied Waste North America
          7.125% 5/15/16 10,000 10,614
Casella Waste Systems
          9.75% 2/1/13 48,000 47,040
Community Health Systems
          8.875% 7/15/15 15,000 15,338
Cornell 10.75% 7/1/12 15,000 15,375
HCA
          9.25% 11/15/16 15,000 15,900
          PIK 9.625% 11/15/16 78,000 83,362
· HealthSouth 7.218% 6/15/14 60,000 61,800
Iron Mountain 8.00% 6/15/20 30,000 30,300
Psychiatric Solutions
          7.75% 7/15/15 20,000 19,400
          #144A 7.75% 7/15/15 10,000 9,450
Select Medical 7.625% 2/1/15 70,000 67,375
Tenet Healthcare 7.375% 2/1/13   30,000   29,700
· US Oncology Holdings PIK
          6.428% 3/15/12 41,000 37,105
492,634
Technology & Electronics – 0.65%
# Advanced Micro Devices 144A
          8.125% 12/15/17 10,000 9,488
Anixter 10.00% 3/15/14 15,000 16,463
Avago Technologies Finance
          10.125% 12/1/13 20,000 21,075
First Data 9.875% 9/24/15 60,000 53,699
* Freescale Semiconductor
          8.875% 12/15/14 45,000 38,475
Sanmina-SCI 8.125% 3/1/16 36,000 35,190
* SunGard Data Systems
          10.25% 8/15/15 35,000 36,050
# Unisys 144A 12.75% 10/15/14 15,000 16,800
227,240
Telecommunications – 3.16%
Cincinnati Bell 8.25% 10/15/17 20,000 19,950
# Clearwire Communications
          Finance 144A
          12.00% 12/1/15 80,000 78,850
* Cricket Communications
          9.375% 11/1/14 77,000 74,497
# DigitalGlobe 144A 10.50% 5/1/14 15,000 16,125
# GCI 144A 8.625% 11/15/19 40,000 40,200
# GeoEye 144A 9.625% 10/1/15 15,000 15,638
# Global Crossing 144A
          12.00% 9/15/15 30,000 32,100
Hughes Network Systems
          9.50% 4/15/14 52,000 52,780
# Intelsat Bermuda 144A
          11.25% 2/4/17 75,000 74,624
Intelsat Jackson Holdings
          11.25% 6/15/16 57,000 61,133
Level 3 Financing
          9.25% 11/1/14 15,000 13,313
          12.25% 3/15/13 15,000 15,731
Lucent Technologies
          6.45% 3/15/29 42,000 32,550
* MetroPCS Wireless 9.25% 11/1/14 57,000 57,428
# NII Capital 144A 10.00% 8/15/16 30,000 31,950
* PAETEC Holding 8.875% 6/30/17 15,000 14,963
# Qwest 144A 8.375% 5/1/16 20,000 21,000
Qwest Communications
          International 7.50% 2/15/14 15,000 14,925
Sprint Capital
          6.875% 11/15/28 35,000 26,425
          8.75% 3/15/32 65,000 55,981
Sprint Nextel 6.00% 12/1/16 35,000 30,363
# Telcordia Technologies 144A
          10.00% 3/15/13 30,000 25,050
Telecom Italia Capital
          5.25% 10/1/15 98,000 103,258

(continues)     15
 


Statement of net assets
 
Delaware Investments® Global Dividend and Income Fund, Inc.
 
Principal Value
             Amount°      (U.S. $)
Corporate Bonds (continued)          
Telecommunications (continued)
Telesat Canada
          11.00% 11/1/15 USD 20,000 $ 21,250
          12.50% 11/1/17 20,000 21,600
US West Capital Funding
          7.75% 2/15/31 20,000 16,300
US West Communications
          7.25% 9/15/25 25,000 22,125
# ViaSat 144A 8.875% 9/15/16 20,000 20,275
West 11.00% 10/15/16 30,000 30,375
# Wind Acquisition Finance 144A
          11.75% 7/15/17 50,000 55,750
1,096,509
Utilities – 1.19%
AES
          8.00% 10/15/17 11,000 11,028
          8.00% 6/1/20 15,000 14,925
          #144A 8.75% 5/15/13 6,000 6,135
# Calpine Construction Finance
          144A 8.00% 6/1/16 30,000 30,300
* Edison Mission Energy
          7.00% 5/15/17 25,000 18,375
Elwood Energy 8.159% 7/5/26 85,265 76,922
Energy Future Holdings
          10.875% 11/1/17 15,000 10,613
Mirant Americas Generation
          8.50% 10/1/21 100,000 90,999
NRG Energy
          7.375% 2/1/16 33,000 32,918
          7.375% 1/15/17 5,000 4,975
Orion Power Holdings
          12.00% 5/1/10 50,000 51,625
· Puget Sound Energy
          6.974% 6/1/67 25,000 22,091
* Texas Competitive Electric
          Holdings 10.25% 11/1/15 30,000 21,450
TXU 5.55% 11/15/14 30,000 20,850
  413,206
Total Corporate Bonds
(cost $10,857,189) 11,286,641
 
Regional Authority – 0.02%D
Canada – 0.02%
Quebec Province 4.50% 12/1/19 CAD 7,000 6,883
Total Regional Authority
(cost $6,721) 6,883
 
«Senior Secured Loans – 0.26%
Chester Downs & Marina
          Term Tranche Loan
          12.375% 12/31/16 USD 15,000 15,038
PQ Term Tranche Loan
          6.79% 7/30/15 45,000 37,762
Texas Competitive Electric
          Holdings Term Tranche Loan
          B2 3.742% 10/10/14   24,734   18,548
Univision Communications
          Term Tranche Loan B
          2.533% 9/29/14 25,000 20,644
Total Senior Secured Loans
(cost $84,442) 91,992
 
Sovereign Debt – 2.92%D
Brazil – 0.92%
Republic of Brazil 12.50% 1/5/16 BRL 500,000 320,422
320,422
Poland – 1.42%
Poland Government Bond
          5.50% 10/25/19 PLN 1,430,000 492,891
492,891
Republic of Korea – 0.58%
Republic of Korea 4.25% 12/7/21 EUR 140,000 200,932
200,932
Total Sovereign Debt (cost $987,205) 1,014,245
 
Supranational Banks – 5.87%
European Investment Bank
          6.125% 1/23/17 AUD 73,000 67,074
          #144A 4.00% 5/15/14 NOK 960,000 174,441
Inter-American Development
          Bank 7.25% 5/24/12 NZD 189,000 144,580
International Bank for
          Reconstruction &
          Development
          5.375% 12/15/14 NZD 349,000 247,979
          5.75% 10/21/19 AUD 1,443,000 1,282,788
          8.75% 6/15/12 BRL 220,000 124,602
Total Supranational Banks
(cost $1,951,968) 2,041,464
 
U.S. Treasury Obligation – 0.41%
U.S. Treasury Bond
          4.50% 8/15/39 USD 135,000 141,877
Total U.S. Treasury Obligation
(cost $139,219) 141,877
 
Number of
Shares
Exchange Traded Fund – 0.01%
Equity Fund – 0.01%
* ProShares UltraShort Real Estate 500 4,355
Total Exchange Traded Fund
(cost $12,394) 4,355

16
 


          Number of      Value
Shares (U.S. $)
Limited Partnerships – 0.11%          
Blackstone Group 1,000 $ 13,840
Brookfield Infrastructure Partners 1,600 24,640
Total Limited Partnerships
(cost $43,863) 38,480
 
Warrant – 0.00%
=† Port Townsend 20 0
Total Warrant (cost $480) 0
 
Principal
Amount°
¹Discount Note – 4.49%
Federal Home Loan Bank
          0.02% 12/1/09 USD 1,561,002 1,561,002
Total Discount Note
(cost $1,561,002) 1,561,002
 
Total Value of Securities Before
Securities Lending Collateral – 126.24%
(cost $43,937,766) 43,883,456
 
Number of
Shares
Securities Lending Collateral** – 9.42%
Investment Companies
          Mellon GSL DBT II
          Collateral Fund 2,155,306 2,155,306
          BNY Mellon SL DBT II
          Liquidating Fund 1,128,030 1,115,734
       @†Mellon GSL DBT II
          Liquidation Trust 78,121 3,320
Total Securities Lending Collateral
(cost $3,361,457) 3,274,360
 
Total Value of Securities – 135.66%
(cost $47,299,223) 47,157,816 ©
Obligation to Return Securities
Lending Collateral** – (9.67%) (3,361,457 )
Borrowing Under Line of Credit – (30.85%) (10,725,000 )
Receivables and Other Assets
Net of Liabilities – 4.86% 1,690,538
Net Assets Applicable to 4,931,031
Shares Outstanding; Equivalent to
  $7.05 Per Share – 100.00% $ 34,761,897
 
Components of Net Assets at November 30, 2009:      
Common stock, $0.01 par value,
500,000,000 shares authorized to the Fund $ 45,922,480
Distributions in excess of net investment income (53,998
Accumulated net realized loss on investments (10,997,716 )
Net unrealized depreciation of investments
and foreign currencies (108,869 )
Total net assets $ 34,761,897
 
°Principal amount shown is stated in the currency in which each security is denominated.
 
AUD — Australian Dollar
BRL — Brazilian Real
CAD — Canadian Dollar
EUR — European Monetary Unit
GBP — British Pound Sterling
ILS — Israeli Shekel
KRW — South Korean Won
NOK — Norwegian Kroner
NZD — New Zealand Dollar
PLN — Polish Zloty
SEK — Swedish Krona
USD — United States Dollar
 
v Securities have been classified by type of business. Classification by country of origin has been presented in Security type and country allocations on page 7.
= Security is being fair valued in accordance with the Fund’s fair valuation policy. At November 30, 2009, the aggregate amount of fair valued securities was $21,252, which represented 0.06% of the Fund’s net assets. See Note 1 in “Notes to financial statements.”
@ Illiquid security. At November 30, 2009, the aggregate amount of illiquid securities was $702,909, which represented 2.02% of the Fund’s net assets. See Note 10 in “Notes to financial statements.”
Non income producing security.
Restricted 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 November 30, 2009, the aggregate amount of the restricted securities was $1 or 0.00% of the Fund’s net assets. See Note 10 in “Notes to financial statements.”
· Variable rate security. The rate shown is the rate as of November 30, 2009.
# Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At November 30, 2009, the aggregate amount of Rule 144A securities was $4,142,806, which represented 11.92% of the Fund’s net assets. See Note 10 in “Notes to financial statements.”
Non income producing security. Security is currently in default.
Ω 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.
Φ Step coupon bond. Coupon increases or decreases periodically based on a predetermined schedule. Stated rate in effect at November 30, 2009.

(continues)     17
 


Statement of net assets
 
Delaware Investments® Global Dividend and Income Fund, Inc.
 
  
« 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. Stated rate in effect at November 30, 2009.
¹ The rate shown is the effective yield at the time of purchase.
* Fully or partially on loan.
** See Note 9 in “Notes to financial statements.”
© Includes $3,256,018 of securities loaned.
D Securities have been classified by country of origin.
 
Summary of Abbreviations:
ADR — American Depositary Receipt
FDR — Fiduciary Depositary Receipt
PIK — Pay-in-kind
REIT — Real Estate Investment Trust
S.F. — Single Family
TBA — To be announced
yr — Year
 
1The following foreign currency exchange contracts were outstanding at November 30, 2009:
 
Foreign Currency Exchange Contracts
Unrealized
Contracts to Settlement Appreciation
Receive (Deliver) In Exchange For Date (Depreciation)
AUD 186,154 USD (168,805 ) 1/8/10 $ 958
BRL 954,785 USD (548,853 ) 1/8/10 (9,355 )
CAD 1,520,698 USD   (1,419,952 ) 1/8/10 20,682
EUR 339,363 USD (503,832 ) 1/8/10 5,589
GBP (115,330 ) USD 190,244 1/8/10 569
ILS 91,560 USD (24,281 ) 1/29/10 (96 )
KRW   34,074,000 USD (29,354 ) 1/8/10 (142 )
NOK 6,208,371 USD   (1,091,409 ) 1/8/10 592
NZD 897,650 USD (647,295 ) 1/8/10 (6,299 )
PLN (1,189,008 ) USD 424,267 1/8/10 (3,883 )
SEK 6,984,919 USD (999,409 ) 1/8/10 2,576
$ 11,191

The use of foreign 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 total exposure in such contracts, whereas only the net unrealized appreciation (depreciation) is reflected in the Fund’s net assets.
 
1See Note 8 in “Notes to financial statements.”
 
See accompanying notes
 
18
 


Statement of operations
 
Delaware Investments® Global Dividend and Income Fund, Inc.
 

Year Ended November 30, 2009
 
Investment Income:        
       Dividends $ 851,734
       Interest 1,146,824
       Securities lending income 37,016
       Foreign tax withheld (33,105 ) $ 2,002,469
  
Expenses:
       Management fees 286,285
       Reports to shareholders 82,295
       Transfer agent fees 65,024
       Legal fees 39,337
       Custodian fees 28,778
       NYSE fees 23,750
       Pricing fees 20,018
       Accounting and administration expenses 16,360
       Audit and tax 15,864
       Leverage expenses 11,580
       Dues and services 8,674
       Directors’ fees 2,122
       Insurance fees 888
       Registration fees 643
       Consulting fees 422
       Directors’ expenses 150
       Total operating expenses (before interest expense) 602,190
       Interest expense 140,165
       Total operating expenses (after interest expense) 742,355
Net Investment Income 1,260,114
 
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currencies:
       Net realized gain (loss) on:
              Investments (4,276,673 )
              Foreign currencies 901,409
              Swap contracts (1,049 )
       Net realized loss (3,376,313 )
       Net change in unrealized appreciation/depreciation of investments and foreign currencies 14,225,371
Net Realized and Unrealized Gain on Investments and Foreign Currencies 10,849,058
 
Net Increase in Net Assets Resulting from Operations $ 12,109,172

See accompanying notes
 
19
 


Statements of changes in net assets
 
Delaware Investments® Global Dividend and Income Fund, Inc.
 
Year Ended
11/30/09       11/30/08
Increase (Decrease) in Net Assets from Operations:  
       Net investment income $ 1,260,114 $ 1,952,595
       Net realized loss on investments and foreign currencies (3,376,313 ) (5,262,320 )
       Net change in unrealized appreciation/depreciation of investments and foreign currencies 14,225,371 (24,502,899 )
       Net increase (decrease) in net assets resulting from operations 12,109,172 (27,812,624 )
 
Dividends and Distributions to Shareholders from:1
       Net investment income (1,978,297 ) (3,065,302 )
       Tax return of capital (1,645,361 ) (2,070,619 )
  (3,623,658 ) (5,135,921 )
 
Capital Share Transactions:2
       Cost of shares repurchased (1,531,217 ) (2,573,422 )
       Decrease in net assets derived from capital stock transactions (1,531,217 ) (2,573,422 )
 
Net Increase (Decrease) in Net Assets 6,954,297 (35,521,967 )
 
Net Assets:
       Beginning of year 27,807,600 63,329,567
       End of year (including distributions in excess of net investment income of $53,998
              and $279,992, respectively) $ 34,761,897 $ 27,807,600

1See Note 4 in “Notes to financial statements.”
2See Note 6 in “Notes to financial statements.”
 
See accompanying notes
 
20
 


Statement of cash flows
 
Delaware Investments® Global Dividend and Income Fund, Inc.
 
Year Ended November 30, 2009
 
Net Cash (Including Foreign Currency) Provided by Operating Activities:
Net increase in net assets resulting from operations $ 12,109,172
 
       Adjustments to reconcile net increase in net assets from operations to cash provided by operating activities:
              Amortization of premium and discount on investments purchased (84,576 )
              Purchase of investment securities (32,542,611 )
              Purchase of short-term investment securities, net (35,128 )
              Proceeds from disposition of investment securities 36,814,658
              Net realized loss on investment transactions 4,068,345
              Net change in unrealized appreciation/depreciation of investments and foreign currencies (14,225,371 )
              Decrease in receivable for investments sold 59,484
              Decrease in interest and dividends receivable 66,761
              Increase in payable for investments purchased 244,188
              Increase in interest payable 14,420
              Decrease in accrued expenses and other liabilities (2,353 )
       Total adjustments (5,622,183 )
Net cash provided by operating activities 6,486,989
 
Cash Flows Used for Financing Activities:
       Cash dividends and distributions paid (3,623,658 )
       Purchase of fund shares (tender offer) (1,531,217 )
Net cash used for financing activities (5,154,875 )
Effect of exchange rates on cash   176,817
Net increase in cash 1,508,931
Cash at beginning of year 405,134
Cash at end of year $ 1,914,065
 
Interest paid for borrowings during the year $ 125,745

See accompanying notes
 
21
 


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:
 
Year Ended
     11/30/09      11/30/08      11/30/07      11/30/06      11/30/05
Net asset value, beginning of period $5.360 $11.590 $13.290 $13.190   $13.590
 
Income (loss) from investment operations:
Net investment income1 0.248 0.365 0.269 0.273   0.384
Net realized and unrealized gain (loss)          
      on investments and foreign currencies 2.155 (5.635 ) 0.192 2.437 0.176
Total from investment operations 2.403 (5.270 ) 0.461 2.710 0.560
 
Less dividends and distributions from:
Net investment income (0.389 ) (0.573 ) (0.402 ) (0.316 ) (0.398 )
Net realized gain on investments (0.863 )   (2.294 ) (0.562 )
Return of capital (0.324 ) (0.387 ) (0.896 )
Total dividends and distributions (0.713 ) (0.960 ) (2.161 ) (2.610 ) (0.960 )
 
Net asset value, end of period $7.050 $5.360 $11.590 $13.290 $13.190
 
Market value, end of period $6.600 $4.240 $10.550 $13.800 $13.400
 
Total return based on:2
Market value 77.48% (54.54% ) (8.46% ) 24.39% 17.22%
Net asset value 49.69% (47.68% ) 4.43% 21.61% 4.43%
 
Ratios and supplemental data:
Net assets, end of period (000 omitted) $34,762 $27,808 $63,330 $72,590 $72,082
Ratio of expenses to average net assets 2.46% 2.90% 3.13% 3.24% 2.59%
Ratio of expenses to adjusted average net assets
       (before interest expense)3 1.47% 1.23% 0.98% 1.01% 1.13%
Ratio of interest expense to adjusted average net assets3 0.34% 0.79% 1.40% 1.40% 0.87%
Ratio of net investment income to average net assets 4.17% 3.90% 2.01% 2.21% 2.84%
Ratio of net investment income to adjusted average net assets3 3.08% 2.71% 1.52% 1.65% 2.19%
Portfolio turnover 89% 60% 46% 76% 121%
 
Leverage Analysis:
Debt outstanding at end of period at par (000 omitted) $10,725 $10,725 $23,000 $23,000 $23,000
Asset coverage per $1,000 of debt outstanding at end of period $4,241 $3,593 $3,753 $4,156 $4,134
 

1 The average shares outstanding method has been applied for per share information.
2 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.
3 Adjusted average net assets excludes debt outstanding.
 
See accompanying notes
 
22
 


Notes to financial statements
 
Delaware Investments® Global Dividend and Income Fund, Inc.
 
November 30, 2009
 
 
 
Delaware Investments Global Dividend and Income Fund, Inc. (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 (NYSE) 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 (GAAP) 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 the time of the regular close of the 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 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 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 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. Short-term debt securities are valued at market value. 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 Fund’s 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. Management has analyzed the Fund’s tax positions taken on federal income tax returns for all open tax years (tax years ended November 30, 2006 – November 30, 2009), and has concluded that no provision for federal income tax is required in the Fund’s 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 to the extent permitted and, if necessary, a return of capital.
 
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. At November 30, 2009, the Fund held no investments in repurchase agreements.
 
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. GAAP 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.
 
(continues)     23
 


Notes to financial statements
 
Delaware Investments® Global Dividend and Income Fund, Inc.
 
 
 
1. Significant Accounting Policies (continued)
 
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 provided for in accordance with the Fund’s understanding of the applicable country’s tax rules and rates. Distributions received from investments in Real Estate Investment Trusts (REITs) are recorded as dividend income on the ex-dividend date, subject to reclassification upon notice of the character of such distributions by the issuer. The financial statements reflect an estimate of the reclassification of the distribution character.
 
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. 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. There were no commission rebates for the year ended November 30, 2009. 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 business and provide other services in the investment management industry.
 
The Fund receives earnings credits from its custodian when positive cash balances are maintained, which are used to offset custody fees. There were no earnings credits for the year ended November 30, 2009.
 
On July 1, 2009, the Financial Accounting Standard Board (FASB) issued the FASB Accounting Standards Codification (Codification). The Codification became the single source of authoritative nongovernmental U.S. GAAP, superseding existing literature of the FASB, American Institute of Certified Public Accountants, Emerging Issues Task Force and other sources. The Codification is effective for interim and annual periods ending after September 15, 2009. The Fund adopted the Codification for the year ended November 30, 2009. There was no impact to financial statements as the Codification requirements are disclosure-only in nature.
 
Management has evaluated whether any events or transactions occurred subsequent to November 30, 2009 through January 21, 2010, the date of issuance of the Fund’s financial statements, and determined that there were no material events or transactions that would require recognition or disclosure in the Fund’s financial statements.
 
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% (calculated daily) of the adjusted average weekly net assets of the Fund. For purposes of the calculation of investment management fees, adjusted average weekly net assets excludes the line of credit liability.
 
Delaware Service Company, Inc. (DSC), an affiliate of DMC, provides fund accounting and financial administration oversight services to the Fund. For these services, the Fund pays DSC fees based on the aggregate daily net assets of the Delaware Investments Family of Funds at the following annual rate: 0.0050% of the first $30 billion; 0.0045% of the next $10 billion; 0.0040% of the next $10 billion; and 0.0025% of aggregate average daily net assets in excess of $50 billion. The fees payable to DSC under the service agreement described above are allocated among all Funds in the Delaware Investments Family of Funds on a relative net asset value basis. For the year ended November 30, 2009, the Fund was charged $2,045 for these services.
 
At November 30, 2009, the Fund had liabilities payable to affiliates as follows:
 
Investment management fee payable to DMC $ 26,438
Fees and other expenses payable to DSC 187
Other expenses payable to DMC and affiliates* 2,198

*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 and tax services, including internal legal and tax services provided to the Fund by DMC and/or its affiliates’ employees. For the year ended November 30, 2009, the Fund was charged $2,574 for internal legal and tax services provided by DMC and/or its affiliates’ employees.
 
Directors’ fees include expenses accrued by the Fund for each Director’s retainer and meeting fees. Certain officers of DMC and DSC are officers and/or directors of the Fund. These officers and directors are paid no compensation by the Fund.
 
24
 


3. Investments
 
For the year ended November 30, 2009, the Fund made purchases of $32,200,445 and sales of $36,618,015 of investment securities other than U.S. government securities and short-term investments. For the year ended November 30, 2009, the Fund made purchases of $342,166 and sales of $196,643 of long-term U.S. government securities.
 
At November 30, 2009, the cost of investments for federal income tax purposes was $47,724,575. At November 30, 2009, net unrealized depreciation was $566,759, of which $3,198,956 related to unrealized appreciation of investments and $3,765,715 related to unrealized depreciation of investments.
 
The Fund applies the provisions, as amended to date, of Accounting Standards Codification 820 (ASC 820), Fair Value Measurements and Disclosures. ASC 820 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 under current market conditions. ASC 820 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 ASC 820 fair value hierarchy levels as of November 30, 2009:
 
Level 1      Level 2       Level 3      Total
Agency, Asset-Backed & Mortgage-Backed Securities $  — $ 287,481 $  — $ 287,481
Common Stock 23,038,369 1 23,038,370
Corporate Debt 15,682,798 21,251 15,704,049
Foreign Debt   2,690,011 372,581 3,062,592
Investment Companies 4,355     4,355
U.S. Treasury Obligations 141,877 141,877
Short-Term 1,561,002 1,561,002
Securities Lending Collateral 2,155,306 1,115,734 3,320   3,274,360
Other 38,480 39,250 6,000 83,730
Total $ 25,378,387 $ 21,376,276 $ 403,153 $ 47,157,816
 
Derivatives $  — $ 11,191 $  — $ 11,191

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:
 
Securities
Common Corporate Foreign Lending
Stock      Debt      Debt      Other      Collateral      Total
Balance as of 11/30/08 $ 1 $ 112,746 $ 299,185   $ 149,157 $ 6,406   $ 567,495
Net purchases, sales, and settlements (159,937 )   97,247 (142,020 ) (204,710 )
Net realized gain (loss)   (17,513 ) (124,689 ) (142,202 )
Net transfers in and/or out of Level 3   (145,303 )   (145,303 )
Net change in unrealized appreciation/depreciation   68,442 138,965 123,552   (3,086 ) 327,873
Balance as of 11/30/09 $ 1 $ 21,251 $ 372,581 $ 6,000 $ 3,320 $ 403,153
Net change in unrealized appreciation/depreciation
       from investments still held as of 11/30/09 $ $ (7,420 ) $ 36,039 $ (23,871 ) $ (3,086 ) $ 1,662  

(continues)     25
 


Notes to financial statements
 
Delaware Investments® Global Dividend and Income Fund, Inc.
 
 
 
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. GAAP. Additionally, distributions from net gains 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 years ended November 30, 2009 and 2008 was as follows:
 
Year Ended
11/30/09       11/30/08
Ordinary income $ 1,978,297 $ 3,065,302
Return of capital 1,645,361 2,070,619
Total $ 3,623,658 $ 5,135,921

5. Components of Net Assets on a Tax Basis
 
As of November 30, 2009, the components of net assets on a tax basis were as follows:
 
Shares of beneficial interest $ 45,922,480
Capital loss carrryforwards   (10,572,364 )
Other temporary differences (42,807 )
Unrealized depreciation of investments
      and foreign currencies (545,412 )
Net assets $ 34,761,897

The differences between book basis and tax basis components of net assets are primarily attributable to tax deferral of losses on wash sales, tax deferral of losses on straddles, contingent payment debt instruments, mark-to-market of forward foreign currency contracts, partnership income, tax treatment of CDS contracts, and market discount and premium on 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 tax treatment of gain (loss) on foreign currency transactions, dividends and distributions, CDS contracts, market discount and premium on certain debt instruments and paydowns of mortgage- and asset-backed securities. Results of operations and net assets were not affected by these reclassifications. For the year ended November 30, 2009, the Fund recorded the following reclassifications:
 
Distributions in excess of net investment income $ 944,177
Accumulated net realized loss (894,854 )
Paid-in capital (49,323 )

For federal income tax purposes, capital loss carryforwards may be carried forward and applied against future capital gains. Capital loss carryforwards remaining at November 30, 2009 will expire as follows: $6,121,024 expires in 2016 and $4,451,340 expires in 2017.
 
6. Capital Stock
 
Shares obtained under the Fund’s dividend reinvestment plan are purchased by the Fund’s transfer agent, The Bank of New York Mellon (BNY Mellon) Shareowner Services, in the open market. There were no shares issued under the Fund’s dividend reinvestment plan for the years ended November 30, 2009 and 2008.
 
On May 21, 2009, the Fund’s Board approved a tender offer for shares of the Fund’s common stock. The tender offer authorized the Fund to purchase up to 5% of its issued and outstanding shares at a price equal to the Fund’s net asset value at the close of business on the NYSE on June 29, 2009, the first business day following the expiration of the offer. The tender offer commenced on June 1, 2009 and expired on June 26, 2009.
 
In connection with the tender offer, the Fund purchased 259,528 shares of capital stock at a total cost of approximately $1,531,217. The tender offer was oversubscribed and all tenders of shares were subject to pro-ration (at a ratio of approximately 0.578412712) in accordance with the terms of the tender offer.
 
On May 22, 2008, the Fund’s Board approved a tender offer for shares of the Fund’s common stock. The tender offer authorized the Fund to purchase up to 5% of its issued and outstanding shares at a price equal to the Fund’s net asset value at the close of business on the NYSE on June 30, 2008, the first business day following the expiration of the offer. The tender offer commenced on May 30, 2008 and expired on June 27, 2008.
 
In connection with the tender offer, the Fund purchased 273,187 shares of capital stock at a total cost of $2,573,422.
 
The Fund did not repurchase shares under the Share Repurchase Program during the years ended November 30, 2009, and 2008.
 
26
 


7. Line of Credit
 
Effective November 29, 2009, the Fund borrowed money pursuant to a $17,000,000 Credit Agreement with BNY Mellon that expires on November 29, 2010. Prior to November 29, 2009, the Credit Agreement was $25,000,000. Depending on market conditions, the amount borrowed by the Fund pursuant to the Credit Agreement may be reduced or possibly increased in the future.
 
At November 30, 2009, the par value of loans outstanding was $10,725,000 at a variable interest rate of 1.38%. During the year ended November 30, 2009, the average daily balance of loans outstanding was $10,725,000 at a weighted average interest rate of approximately 1.31%. Interest on borrowings is based on a variable short-term rate plus an applicable margin. The commitment fee is computed at a rate of 0.25% per annum on the unused balance. The loan is collateralized by the Fund’s portfolio.
 
8. Derivatives
 
The Fund applies the provisions, as amended to date, of Accounting Standards Codification 815 (ASC 815), Derivatives and Hedging Activities (ASC 815). ASC 815 is intended to improve financial reporting about derivative instruments by requiring enhanced disclosures that enable investors to understand: 1) how and why an entity uses derivatives, 2) how they are accounted for, and 3) how they affect an entity’s results of operations and financial position.
 
The Fund may enter into foreign currency exchange contracts in order to generate additional income and 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 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 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. The Fund’s maximum risk of loss from counterparty credit risk is the value of its currency exchanged with the counterparty. The risk is generally mitigated by having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty.
 
Swap Contracts — The Fund may enter into interest rate swap contracts, index swap contracts and CDS contracts in the normal course of pursuing 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.
 
Interest Rate Swaps. An interest rate swap contract is an exchange of interest rates between counterparties. In one instance, 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 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. The Fund’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from/paid to the counterparty over the interest rate swap contract’s remaining life, to the extent that the amount is positive. This risk is mitigated by having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty.
 
Index Swaps. 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. The Fund’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from/paid to the counterparty over the index swap contract’s remaining life, to the extent that the amount is positive. This risk is mitigated by having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty.
 
Credit Default Swaps. 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.
 
(continues)     27
 


Notes to financial statements
 
Delaware Investments® Global Dividend and Income Fund, Inc.
 
 
 
8. Derivatives (continued)
 
During the year ended November 30, 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. There were no credit default swap contracts outstanding at November 30, 2009.
 
Credit default swaps may involve greater risks than if the Fund had invested in the reference security or basket of securities directly. Credit default swaps are subject to general market risk, liquidity risk, counterparty risk and credit risk. The Fund’s maximum risk of loss from counterparty credit risk, either as the seller of protection or the buyer of protection, is the fair value of the contract. This risk is mitigated by having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty.
 
Swaps Generally. 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 contracts 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 movement 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.
 
9. 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 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 may invest 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 (S&P) or Moody’s Investors Service, Inc. (Moody’s) 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. At November 30, 2009, the Collective Trust held only cash and assets with a maturity of one business day or less (Cash/Overnight Assets). 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. Effective April 20, 2009, BNY Mellon transferred the assets of the Collective Trust other than the Cash/Overnight Assets to the BNY Mellon SL DBT II Liquidating Fund (Liquidating Fund), effectively bifurcating the collateral investment pool. The Fund’s exposure to the Liquidating Fund is expected to decrease as the Liquidating Fund’s assets mature or are sold. In October 2008, BNY Mellon transferred certain distressed securities from the Collective Trust into the Mellon GSL Reinvestment Trust II. 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 November 30, 2009, the value of securities on loan was $3,256,018, for which the Fund received collateral, comprised of non-cash collateral valued at $ 26,250, and cash collateral of $ 3,361,457. At November 30, 2009, the value of invested collateral was $3,274,360. Investments purchased with cash collateral are presented on the statement of net assets under the caption “Securities Lending Collateral.”
 
10. Credit and Market Risk
 
The Fund borrows through its line of credit for purpose 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
 
28
 


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 S&P and/or Ba or lower by Moody’s. 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 year ended November 30, 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 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. 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 statement of net assets.
 
11. 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.
 
12. Sale of Delaware Investments to Macquarie Group
 
On August 18, 2009, Lincoln National Corporation (parent company of Delaware Investments) and Macquarie Group (Macquarie) entered into an agreement pursuant to which Delaware Investments, including DMC and DSC, would be acquired by Macquarie, an Australia-based global provider of banking, financial, advisory, investment and funds management services (Transaction). The Transaction was completed on January 4, 2010. DMC and DSC are now wholly owned subsidiaries of Macquarie.
 
The Transaction resulted in a change of control of DMC which, in turn, caused the termination of the investment advisory agreement between DMC and the Fund. On January 4, 2010, the new investment advisory agreement between DMC and the Fund that was approved by the shareholders became effective.
 
13. Tax Information (Unaudited)
 
The information set forth below is for the Fund’s fiscal year as required by federal income tax laws. Shareholders, however, must report distributions on a calendar year basis for income tax purposes, which may include distributions for portions of two fiscal years of the fund. Accordingly, the information needed by shareholders for income tax purposes will be sent to them in January of each year. Please consult your tax advisor for proper treatment of this information.
 
For the fiscal year ended November 30, 2009, the Fund designates distributions paid during the year as follows:
 
(A) (B)
Long-Term      Ordinary (C)           (D)
Capital Gain   Income      Return Total   Qualifying
Distributions Distributions* of Capital Distributions (Tax Basis)
(Tax Basis) (Tax Basis) (Tax Basis) (Tax Basis) Dividends1
54.59% 45.41% 100.00% 8.63%

(A) and (B) are based on a percentage of the Fund’s total distributions.
 
(C) is based on a percentage of the Fund’s ordinary income distributions.
 
1 Qualifying dividends represent dividends which qualify for the corporate dividends received deduction.
 
*For the fiscal year ended November 30, 2009, certain dividends paid by the Fund may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Fund intends to designate the $465,304 to be taxed at a maximum rate of 15%. Complete information will be computed and reported in conjunction with your 2009 Form 1099-DIV.
 
For the fiscal year ended November 30, 2009, certain interest income paid by the Fund, determined to be Qualified Interest Income, may be subject to relief from U.S. withholding for foreign shareholders, as provided by the American Jobs Creation Act of 2004. For the fiscal year ended November 30, 2009, the Fund has designated maximum distributions of Qualified Interest Income of $824,561.
 
29
 


Report of independent
registered public accounting firm
 
To the Shareholders and Board of Directors
Delaware Investments® Global Dividend
and Income Fund, Inc.
 
We have audited the accompanying statement of net assets of Delaware Investments Global Dividend and Income Fund, Inc. (the “Fund”) as of November 30, 2009, and the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
 
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Fund’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of November 30, 2009 by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.
 
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Delaware Investments Global Dividend and Income Fund, Inc. at November 30, 2009, the results of its operations and cash flows for the year then ended, the changes in its net assets for each of the two years in the period then ended, and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
 
 
Philadelphia, Pennsylvania
January 21, 2010
 
30
 


Other Fund information
(Unaudited)
 
Delaware Investments® Global Dividend and Income Fund, Inc.
 
Proxy Results
 
Annual Meeting
 
The Fund held its Annual Meeting of Shareholders on Aug. 19, 2009. At the Annual Meeting, the Fund’s shareholders elected nine Directors. The results of the voting at the meeting were as follows:
 
No Ballot
Nominee                Shares Voted For              Shares Withheld              Received
Patrick P. Coyne 4,453,698.23 189,339.58 547,520.19
Thomas L. Bennett 4,461,723.25 181,314.56 547,520.19
John A. Fry 4,463,068.63 179,969.18   547,520.19
Anthony D. Knerr 4,453,673.53 189,364.28 547,520.19
Lucinda S. Landreth 4,403,550.50 239,487.31 547,520.19
Ann R. Leven 4,396,216.36 246,821.45 547,520.19
Thomas F. Madison 4,377,761.37   265,276.44 547,520.19
Janet L. Yeomans 4,396,439.90 246,597.91 547,520.19
J. Richard Zecher 4,453,884.90 189,152.91 547,520.19

Investment Management Agreement
 
The Fund held a Special Meeting of Shareholders on November 12, that was adjourned and reconvened on December 4, 2009. On December 4, 2009, the Fund’s shareholders approved a new investment advisory agreement between the Fund and Delaware Management Company, a series of Delaware Management Business Trust. The results of the meeting were as follows:
 
Shares Voted For 2,279,643.601
Shares Voted Against or Withheld 199,897.477
No Vote 2,451,488.922

The meeting was held in connection with the Transaction described in note 12 above.
 
Corporate Governance
 
The Fund’s audit committee charter is available on its web site at www.delawareinvestments.com, and the charter is also available in print to any shareholder who requests it. The Fund submitted its Annual CEO certification for 2009 to the New York Stock Exchange (“NYSE”) on September 16, 2009 stating that the CEO was not aware of any violation by the Fund of the NYSE’s corporate governance listing standards. In addition, the Fund had filed the required CEO/CFO certifications regarding the quality of the Fund’s public disclosure as exhibits to the Forms N-CSR and Forms N-Q filed by the Fund over the past fiscal year. The Fund’s Form N-CSR and Form N-Q filings are available on the Commission’s web site at www.sec.gov.
 
Changes to Portfolio Management Team
 
Kristen E. Bartholdson was appointed co-portfolio manager of the Fund on Dec. 8, 2008. Ms. Bartholdson joined Anthony A. Lombardi, Babak Zenouzi, Nikhil G. Lalvani, Robert Vogel Jr., Nashira S. Wynn, Damon J. Andres, Edward Gray, Thomas H. Chow, D. Tysen Nutt Jr., Kevin P. Loome, Roger A. Early, and Todd A. Bassion in making day-to-day decisions for the Fund.
 
On February 13, 2009, the Fund announced that, effective March 30, 2009, Philip R. Perkins no longer serves as a co-portfolio manager of the Fund.
 
Fund management
 
Babak “Bob” Zenouzi
Senior Vice President, Senior Portfolio Manager
 
Bob Zenouzi is the lead manager for the domestic and global REIT effort at Delaware Investments, which includes the team, its process, and its institutional and retail products, which he created during his prior time with the firm. He also focuses on opportunities in Japan, Singapore, and Malaysia for the firm’s global REIT product. Additionally, he serves as lead portfolio manager for the firm’s Dividend Income products, which he helped to create in the 1990s. He is also a member of the firm’s asset allocation committee, which is responsible for building and managing multi-asset class portfolios. He rejoined Delaware Investments in May 2006 as senior portfolio manager and head of real estate securities. In his first term with the firm, he spent seven years as an analyst and portfolio manager, leaving in 1999 to work at Chartwell Investment Partners, where from 1999 to 2006 he was a partner and senior portfolio manager on Chartwell’s Small-Cap Value portfolio. He began his career with The Boston Company, where he held several positions in accounting and financial analysis. Zenouzi earned a master’s degree in finance from Boston College and a bachelor’s degree from Babson College. He is a member of the National Association of Real Estate Investment Trusts and the Urban Land Institute.
 
(continues)     31
 


Other Fund information
(Unaudited)
 
Delaware Investments® Global Dividend and Income Fund, Inc.
 
Fund management (continued)
 
Damon J. Andres, CFA
Vice President, Senior Portfolio Manager
 
Damon J. Andres, who joined Delaware Investments in 1994 as an analyst, currently serves as a portfolio manager for REIT investments and convertibles. He also serves as a portfolio manager for the firm’s Dividend Income products. From 1991 to 1994, he performed investment-consulting services as a consulting associate with Cambridge Associates. Andres earned a bachelor’s degree in business administration with an emphasis in finance and accounting from the University of Richmond.
 
Kristen E. Bartholdson
Vice President, Portfolio Manager
 
Kristen E. Bartholdson is a portfolio manager with the firm’s Large-Cap Value Focus team. Prior to joining the firm in 2006 as an associate portfolio manager, she worked at Susquehanna International Group from 2004 to 2006, where she was an equity research salesperson. From 2000 to 2004 she worked in equity research at Credit Suisse, most recently as an associate analyst in investment strategy. Bartholdson earned her bachelor’s degree in economics from Princeton University.
 
Todd A. Bassion, CFA
Vice President, Portfolio Manager
 
Todd A. Bassion joined Delaware Investments in June 2005 as a senior analyst on the firm’s International Value Equity team. He co-manages the International Value Equity and Global Value funds and takes a lead role in generating and researching new companies for the portfolios. Bassion previously worked at Arborway Capital, where he was a key part of the team that started at ValueQuest/TA and moved to Thomas Weisel Asset Management with its acquisition of ValueQuest/TA in 2002. Bassion, who joined ValueQuest/TA in 2000, served as a research associate there. Bassion earned a bachelor’s degree in economics from Colorado College.
 
Thomas H. Chow, CFA
Senior Vice President, Senior Portfolio Manager
 
Thomas H. Chow is a member of the firm’s taxable fixed income portfolio management team, with primary responsibility for portfolio construction and strategic asset allocation in investment grade credit exposures. He is the lead portfolio manager for Delaware Corporate Bond Fund and Delaware Extended Duration Bond Fund, as well as several institutional mandates. His experience includes significant exposure to asset liability management strategies and credit risk opportunities. Prior to joining Delaware Investments in 2001 as a portfolio manager working on the Lincoln General Account, he was a trader of high grade and high yield securities, and was involved in the portfolio management of collateralized bond obligations (CBOs) and insurance portfolios at SunAmerica/AIG from 1997 to 2001. Before that, he was an analyst, trader, and portfolio manager at Conseco Capital Management from 1989 to 1997. Chow received a bachelor’s degree in business analysis from Indiana University, and he is a Fellow of Life Management Institute.
 
Roger A. Early, CPA, CFA, CFP
Senior Vice President, Co-Chief Investment Officer – Total Return Fixed Income Strategy
 
Roger A. Early rejoined Delaware Investments in March 2007 as a member of the firm’s taxable fixed income portfolio management team, with primary responsibility for portfolio construction and strategic asset allocation. During his previous time at the firm, from 1994 to 2001, he was a senior portfolio manager in the same area, and he left Delaware Investments as head of its U.S. investment grade fixed income group. In recent years, Early was a senior portfolio manager at Chartwell Investment Partners and Rittenhouse Financial and served as the chief investment officer for fixed income at Turner Investments. Prior to joining Delaware Investments in 1994, he worked for more than 10 years at Federated Investors where he managed more than $25 billion in mutual fund and institutional portfolios in the short-term and investment grade markets. He left the firm as head of institutional fixed income management. Earlier in his career, he held management positions with the Federal Reserve Bank, PNC Financial, Touche Ross, and Rockwell International. Early earned his bachelor’s degree in economics from The Wharton School of the University of Pennsylvania and an MBA with concentrations in finance and accounting from the University of Pittsburgh. He is a member of the CFA Society of Philadelphia.
 
32
 


Edward A. “Ned” Gray, CFA
Senior Vice President, Senior Portfolio Manager
 
Ned Gray joined Delaware Investments in June 2005 in his current position, developing the firm’s International Value Equity team, from Arborway Capital, which he co-founded in January 2005. He previously worked in the investment management business at Thomas Weisel Asset Management, and ValueQuest, which was acquired by TWAM in 2002. At ValueQuest, which he joined in 1987, Gray served as a senior investment professional with responsibilities for portfolio management, security analysis, quantitative research, performance analysis, global research, back office/investment information systems integration, trading, and client and consultant relations. Prior to ValueQuest, he was a research analyst at the Center for Competitive Analysis. Gray received his bachelor’s degree in history from Reed College and a master of arts in law and diplomacy, in international economics, business and law from Tufts University’s Fletcher School of Law and Diplomacy.
 
Nikhil G. Lalvani, CFA
Vice President, Portfolio Manager
 
Nikhil G. Lalvani is a portfolio manager with the firm’s Large-Cap Value Focus team. At Delaware Investments, Lalvani has served as both a fundamental and quantitative analyst. Prior to joining the firm in 1997 as an account analyst, he was a research associate with Bloomberg. Lalvani holds a bachelor’s degree in finance from The Pennsylvania State University. He is a member of the CFA Institute and the CFA Society of Philadelphia.
 
Anthony A. Lombardi, CFA
Vice President, Senior Portfolio Manager
 
Anthony A. Lombardi is a senior portfolio manager for the firm’s Large-Cap Value Focus strategy. Prior to joining the firm in 2004 in his current role, Lombardi was a director at Merrill Lynch Investment Managers. He joined Merrill Lynch Investment Managers’ Capital Management Group in 1998 and last served as a portfolio manager for the U.S. Active Large-Cap Value team, managing mutual funds and separate accounts for institutions and private clients. From 1990 to 1997, he worked at Dean Witter Reynolds as a sell-side equity research analyst. He began his career as an investment analyst with Crossland Savings. Lombardi graduated from Hofstra University, receiving a bachelor’s degree in finance and an MBA with a concentration in finance. He is a member of the New York Society of Security Analysts and the CFA Institute.
 
Kevin P. Loome, CFA
Senior Vice President, Senior Portfolio Manager, Head of High Yield Investments
 
Kevin P. Loome is head of the High Yield fixed income team, responsible for portfolio construction and strategic asset allocation of all high yield fixed income assets. Prior to joining Delaware Investments in August 2007 in his current position, Loome spent 11 years at T. Rowe Price, starting as an analyst and leaving the firm as a portfolio manager. He began his career with Morgan Stanley as a corporate finance analyst in the New York and London offices. Loome received his bachelor’s degree in commerce from the University of Virginia and earned an MBA from the Tuck School of Business at Dartmouth.
 
D. Tysen Nutt Jr.
Senior Vice President, Senior Portfolio Manager, Team Leader – Large-Cap Value Focus Equity
 
D. Tysen Nutt Jr. joined Delaware Investments in 2004 as senior vice president and senior portfolio manager for the firm’s Large-Cap Value Focus strategy. Before joining the firm, Nutt led the U.S. Active Large-Cap Value team within Merrill Lynch Investment Managers, where he managed mutual funds and separate accounts for institutions and private clients. He departed Merrill Lynch Investment Managers as a managing director. Prior to joining Merrill Lynch Investment Managers in 1994, Nutt was with Van Deventer & Hoch (V&H) where he managed large-cap value portfolios for institutions and private clients. He began his investment career at Dean Witter Reynolds, where he eventually became vice president, investments. Nutt earned his bachelor’s degree from Dartmouth College, and he is a member of the New York Society of Security Analysts and the CFA Institute.
 
(continues)     33
 


Other Fund information
(Unaudited)
 
Delaware Investments® Global Dividend and Income Fund, Inc.
 
Fund management (continued)
 
Robert A. Vogel Jr., CFA
Vice President, Senior Portfolio Manager
 
Robert A. Vogel Jr. joined Delaware Investments in 2004 as a vice president, senior portfolio manager for the firm’s Large-Cap Value Focus strategy. He previously worked at Merrill Lynch Investment Managers for more than seven years, where he rose to the position of director and portfolio manager within the U.S. Active Large-Cap Value team. He began his career in 1992 as a financial consultant at Merrill Lynch Investment Managers. Vogel graduated from Loyola College in Maryland, earning both bachelor’s and master’s degrees in finance. He also earned an MBA with a concentration in finance from The Wharton School of the University of Pennsylvania. Vogel is a member of the New York Society of Security Analysts, the CFA Institute, and the CFA Society of Philadelphia.
 
Nashira S. Wynn
Vice President, Portfolio Manager
 
Nashira S. Wynn is a portfolio manager with the firm’s Large-Cap Value Focus team. Prior to joining Delaware Investments in 2004 as a senior equity analyst, she was an equity research analyst for Merrill Lynch Investment Managers, starting there in July 2001. Wynn earned a bachelor’s degree in finance, with a minor in economics, from The College of New Jersey, and she attended England’s Oxford University as a Presidential Scholar.
 
Distribution Information
 
Shareholders were sent monthly notices from the Fund that set forth estimates, on a book basis, of the source or sources from which monthly distributions were paid. Subsequently, certain of these estimates have been corrected in part. Listed below is a written statement of the sources of these monthly distributions on a book basis.
 
Long-Term Total
Net Investment Return of Capital Distribution
Income Capital Gain (Loss) Amount
Month   per Share       per Share       per Share       per Share
December 2008 $ 0.0270 $ 0.0530 $ $ 0.0800
January 2009 $ 0.0146   0.0429 $ $ 0.0575  
February 2009 $ 0.0200 0.0375 $ $ 0.0575
March 2009 $ 0.0226 0.0349 $   $ 0.0575
April 2009 $ 0.0256 0.0319 $ $ 0.0575
May 2009 $ 0.0284 0.0291 $ $ 0.0575
June 2009 $ 0.0121 0.0454   $ $ 0.0575
July 2009 $ 0.0113   0.0462 $ $ 0.0575
August 2009 $ 0.0212 0.0363 $ $ 0.0575
September 2009 $ 0.0224 0.0351 $ $ 0.0575
October 2009 $ 0.0167 0.0408 $ $ 0.0575
November 2009   $ 0.0227   0.0348   $   $ 0.0575
  $ 0.2446   $ 0.4679   $ 0.000   $ 0.7125

Please note that the information in the preceding chart is for book purposes only. Shareholders should be aware the tax treatment of distributions may differ from their book treatment. The tax treatment of distributions will be set forth in a Form 1099-DIV.
 
In January 2009, the Fund reduced the monthly distribution amount from $0.08 per share to $0.575 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.
 
Tender Offer
 
As described in Note 6 to the Financial Statements, the Fund conducted a tender offer in 2009. There can be no assurance that a tender offer will reduce or eliminate any spread between market price and the net asset value of the Fund’s shares. The market price of the shares will, among other things, be determined by the relative demand for and supply of shares in the market, the Fund’s investment performance, the Fund’s dividends and yields, and investor perception of the Fund’s overall attractiveness as an investment as compared with other investment alternatives. Nevertheless, the fact that a tender offer may be conducted may result in more of a reduction in the spread between market price and net asset value than might
 
34
 


otherwise be the case. The Fund’s Board of Directors, consistent with its fiduciary obligations, may explore alternatives to a tender offer to reduce or eliminate the Fund’s potential market value discount from net asset value. Therefore, the Fund cannot provide assurance that it will make tender offers in the future.
 
Since the Fund’s organization in 1994, the Fund has consummated four tender offers, including tender offers in 2000, 2005, 2008, and 2009.
 
Dividend Reinvestment Plan
 
The Fund offers an automatic dividend reinvestment program (“Plan”). Shareholders who have shares registered in their own names are eligible to elect to participate in the Plan by contacting BNY Mellon Shareowner Services at 800 851-9677. Shareholders who hold their shares through a bank, broker, or other nominee should request the bank, broker, or nominee to participate in the Plan on their behalf. This can be done as long as the bank, broker, or nominee provides a dividend reinvestment service for the Fund. If the bank, broker, or nominee does not provide this service, such shareholders must have their shares taken out of “street” or nominee name and re-registered in their own name in order to participate in the Plan. Shareholders will receive their Distributions (as defined below) in cash unless they notify BNY Mellon Shareowner Services or their bank, broker, or nominee of their desire to enroll in the Plan.
 
BNY Mellon Shareowner Services will apply all cash dividends, capital gains and other distributions (collectively, “Distributions”) on the Fund’s shares of common stock which become payable to each Plan participant to the purchase of outstanding shares of the Fund’s common stock for such participant. These purchases may be made on a securities exchange or in the over-the-counter market, and may be subject to such terms of price, delivery, and related matters to which BNY Mellon Shareowner Services may agree. The Fund will not issue new shares in connection with the Plan.
 
Distributions reinvested for participants are subject to income taxes just as if they had been paid directly to the shareholder in cash. Participants will receive a year-end statement showing distributions reinvested, and any brokerage commissions paid on such participant’s behalf.
 
Shareholders holding shares of the Fund in their own names who wish to terminate their participation in the Plan may do so by sending written instruction to BNY Mellon Shareowner Services so that BNY Mellon Shareowner Services receives such instructions at least 10 days prior to the Distribution record date. Shareholders with shares held in account by a bank, broker, or other nominee should contact such bank, broker, or other nominee to determine the procedure for withdrawal from the Plan.
 
If written instructions are not received by BNY Mellon Shareowner Services at least 10 days prior to the record date for a particular Distribution, that Distribution may be reinvested at the sole discretion of BNY Mellon Shareowner Services. After a shareholder’s instructions to terminate participation in the Plan become effective, Distributions will be paid to shareholders in cash. Upon termination, a shareholder may elect to receive either stock or cash for all the full shares in the account. If cash is elected, BNY Mellon Shareowner Services will sell such shares at the then current market value and then send the net proceeds to the shareholder, after deducting brokerage commissions and related expenses. Any fractional shares at the time of termination will be paid in cash at the current market price, less brokerage commissions and related expenses, if any. Shareholders may at any time request a full or partial withdrawal of shares from the Plan, without terminating participation in the Plan. When shares outside of the Plan are liquidated, Distributions on shares held under the Plan will continue to be reinvested unless BNY Mellon Shareowner Services is notified of the shareholder’s withdrawal from the Plan.
 
An investor holding shares that participate in the Plan in a brokerage account may not be able to transfer the shares to another broker and continue to participate in the Plan. Please contact your broker/dealer for additional details.
 
BNY Mellon Shareowner Services will charge participants their proportional share of brokerage commissions on market purchases. Participants may obtain a certificate or certificates for all or part of the full shares credited to their accounts at any time by making a request in writing to BNY Mellon Shareowner Services. A fee may be charged to the participant for each certificate issuance.
 
If you have any questions and shares are registered in your name, contact BNY Mellon Shareowner Services at 800 851-9677. If you have any questions and shares are registered in “street” name, contact the broker/dealer holding the shares or your financial advisor.
 
Effective August 1, 2008, the Dividend Reinvestment Plan may be amended by the Fund upon twenty days written notice to the Plan’s participants.
 
Board Consideration of New Investment Advisory Agreement
 
At a meeting held on September 3, 2009 (the “Meeting”), the Board of Directors of the Delaware Investments Family of Funds (the “Board”), including the independent Directors, unanimously approved a new investment advisory agreement between each registrant on behalf of each series (each, a “Fund” and together, the “Funds”) and Delaware Management Company (“DMC”) in connection with the sale of Delaware Investments’ advisory business to Macquarie Bank Limited (the “Macquarie Group”) (the “Transaction”). In making its decision, the Board considered information furnished specifically in connection with the approval of the new investment advisory agreements with DMC (the “New Investment Advisory Agreements”), which included extensive materials about the Transaction and matters related to the proposed approvals. To assist the Board in considering the New Investment Advisory
 
(continues)     35
 


Other Fund information
(Unaudited)
 
Delaware Investments® Global Dividend and Income Fund, Inc.
 
Board Consideration of New Investment Advisory Agreement (continued)
 
Agreements, Macquarie Group provided materials and information about Macquarie Group, including detailed written responses to the questions posed by the independent Directors. DMC also provided materials and information about the Transaction, including detailed written responses to the questions posed by the independent Directors.
 
At the Meeting, the Directors discussed the Transaction with DMC management and with key Macquarie Group representatives. The Meeting included discussions of the strategic rationale for the Transaction and Macquarie Group’s general plans and intentions regarding the Funds and DMC. The Board members also inquired about the plans for, and anticipated roles and responsibilities of, key employees and officers of Delaware Management Holdings Inc. and DMC in connection with the Transaction.
 
In connection with the Directors’ review of the New Investment Advisory Agreements for the Funds, DMC and/or Macquarie Group emphasized that:
  • They expected that there would be no adverse changes as a result of the Transaction, in the nature, quality, or extent of services currently provided to the Funds and their shareholders, including investment management, distribution, or other shareholder services.
     
  • No material changes in personnel or operations were contemplated in the operation of DMC under Macquarie Group as a result of the Transaction and no material changes were currently contemplated in connection with third party service providers to the Funds.
     
  • Macquarie Group had no intention to cause DMC to alter the voluntary expense waivers and reimbursements currently in effect for the Funds.
     
  • Under the agreement between Macquarie Group and Lincoln National Corporation (“LNC”) (the “Transaction Agreement”), Macquarie Group has agreed to conduct, and to cause its affiliates to conduct, their respective businesses in compliance with the conditions of Section 15(f) of the Investment Company Act of 1940 (the “1940 Act”) with respect to the Funds, to the extent within its control, including maintaining Board composition of at least 75% of the Board members qualifying as independent Directors and not imposing any “unfair burden” on the Funds for at least two years from the closing of the Transaction (the “Closing”).
In addition to the information provided by DMC and Macquarie Group as described above, the Directors also considered all other factors they believed to be relevant to evaluating the New Investment Advisory Agreements, including the specific matters discussed below. In their deliberations, the Directors did not identify any particular information that was controlling, and different Directors may have attributed different weights to the various factors. However, for each Fund, the Directors determined that the overall arrangements between the Fund and DMC, as provided in the respective New Investment Advisory Agreement, including the proposed advisory fee and the related administration arrangements between the Fund and DMC, were fair and reasonable in light of the services to be performed, expenses incurred, and such other matters as the Directors considered relevant. Factors evaluated included:
  • The potential for expanding distribution of Fund shares through access to Macquarie Group’s existing distribution channels;
     
  • Delaware Investments’ acquisition of an exclusive wholesaling sales force from a subsidiary of LNC;
     
  • The reputation, financial strength, and resources of Macquarie Group as well as its historic and ongoing commitment to the asset management business in Australia as well as other parts of the world;
     
  • The terms and conditions of the New Investment Advisory Agreements, including that each Fund’s total contractual fee rate under the New Investment Advisory Agreement will remain the same;
     
  • The Board’s full annual review (or initial approval) of the current investment advisory agreements at their in-person meeting in May 2009 as required by the 1940 Act and its determination that (i) DMC had the capabilities, resources, and personnel necessary to provide the satisfactory advisory and administrative services currently provided to each Fund and (ii) the advisory and/or management fees paid by each Fund, taking into account any applicable fee waivers and breakpoints, represented reasonable compensation to DMC in light of the services provided, the costs to DMC of providing those services, economies of scale, and the fees and other expenses paid by similar funds and such other matters that the Board considered relevant in the exercise of its reasonable judgment;
     
  • The portfolio management teams for the Funds are not currently expected to change as a result of the Transaction;
     
  • LNC and Macquarie Group were expected to execute a reimbursement agreement pursuant to which LNC and Macquarie Group would agree to pay (or reimburse) all reasonable out-of-pocket costs and expenses of the Funds in connection with the Board’s consideration of the Transaction, the New Investment Advisory Agreements and related agreements, and all costs related to the proxy solicitation (the “Expense Agreement”);
     
  • The likelihood that Macquarie Group would invest additional amounts in Delaware Investments, including DMC, which could result in increased assets under management, which in turn would allow some Funds the potential opportunity to achieve economies of scale and lower fees payable by Fund shareholders; and
     
  • The compliance and regulatory history of Macquarie Group and its affiliates.
36
 


In making their decision relating to the approval of each Fund’s New Investment Advisory Agreement, the independent Directors gave attention to all information furnished. The following discussion, however, identifies the primary factors taken into account by the Directors and the conclusions reached in approving the New Investment Advisory Agreements.
 
Nature, Extent, and Quality of Service. The Directors considered the services historically provided by DMC to the Funds and their shareholders. In reviewing the nature, extent, and quality of services, the Board considered that the New Investment Advisory Agreements would be substantially similar to the current investment advisory agreements between the Funds and DMC (the “Current Investment Advisory Agreements”), and they, therefore, considered the many reports furnished to them throughout 2008 and 2009 at regular Board meetings covering matters such as the relative performance of the Funds; the compliance of portfolio managers with the investment policies, strategies, and restrictions for the Funds; the compliance of management personnel with the code of ethics adopted throughout the Delaware Investments Family of Funds complex; and the adherence to fair value pricing procedures as established by the Board. The Directors were pleased with the current staffing of DMC and the emphasis placed on research and risk management in the investment process. Favorable consideration was given to DMC’s efforts to maintain expenditures and, in some instances, increase financial and human resources committed to Fund matters.
 
The Board was assured that shareholders would continue to receive the benefits provided to Fund shareholders by being part of the Delaware Investments Family of Funds. Based on the information provided by DMC and Macquarie Group, including that Macquarie Group and DMC currently expected no material changes as a result of the Transaction in (i) personnel or operations of DMC or (ii) third party service providers to the Funds, the Board concluded that the satisfactory nature, extent, and quality of services currently provided to the Funds and their shareholders were very likely to continue under the New Investment Advisory Agreements. The Board also concluded that it was very unlikely that any “unfair burden” would be imposed on any of the Funds for the first two years following the Closing as a result of the Transaction. Consequently, the Board concluded that it did not expect the Transaction to result in any adverse changes in the nature, quality, or extent of services (including investment management, distribution or other shareholder services) currently provided to the Funds and their shareholders.
 
Investment Performance. The Board considered the overall investment performance of DMC and the Funds. The Directors placed significant emphasis on the investment performance of the Funds in view of its importance to shareholders. Although the Directors gave appropriate consideration to performance reports and discussions with portfolio managers at Board meetings throughout the year, the Directors gave particular weight to their review of investment performance in connection with the approval of the Current Investment Advisory Agreements at the Board meeting held in May 2009. At that meeting, the Directors reviewed reports prepared by Lipper, Inc., an independent statistical compilation organization (“Lipper”) which showed each Fund’s investment performance as of December 31, 2008 in comparison to a group of funds selected by Lipper as being similar to the Fund (the “Performance Universe”). During the May 2009 agreement review process, the Directors observed the significant improvements to relative investment performance of the Funds as compared to the Funds’ performance as of December 31, 2007.
 
At their meeting on September 3, 2009, the Directors, including the independent Directors in consultation with their independent counsel, reviewed the investment performance of each Fund. The Directors compared the performance of each Fund relative to that of its respective Performance Universe for the 1-, 3-, 5-, and 10-year periods ended June 30, 2009 and compared its relative investment performance against the corresponding relative investment performance of each Fund for such time periods ended December 31, 2008, to the extent applicable. As of June 30, 2009, 30 of the Funds had investment performance relative to that of the respective Performance Universe that was better than the corresponding relative investment performance at December 31, 2008 for all applicable time periods. At June 30, 2009, an additional 6 Funds had investment performance relative to that of their respective Performance Universe that was better than the corresponding relative investment performance at December 31, 2008 for a majority of the applicable time periods. At June 30, 2009, 15 additional Funds had investment performance relative to that of their respective Performance Universe that was better than the corresponding relative performance at December 31, 2008 and only 29 Funds had poorer relative investment performance at June 30, 2009 compared to that at December 31, 2008. The Board therefore concluded that the investment performance of the Funds on an aggregate basis had continued to improve relative to their respective Performance Universe since the data reviewed at the May 2009 meeting.
 
The Performance Universe for the Delaware Investments Global Dividend and Income Fund, Inc. 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 performance for the three-, five- and ten-year periods was in the first quartile. The Board was satisfied with performance.
 
Based on information provided by DMC and Macquarie Group, the Board concluded that neither the Transaction nor the New Investment Advisory Agreement would likely have an adverse effect on the investment performance of any Fund because (i) DMC and Macquarie Group did not currently expect the Transaction to cause any material change to the Funds’ portfolio management teams responsible for investment performance, which the Board found to be satisfactory and improving; and (ii) as discussed in more detail below, the Funds’ expenses were not expected to increase as a result of the Transaction.
 
Comparative Expenses. The Directors also considered expense comparison data for the Funds previously provided in May 2009. At that meeting, DMC had provided the Board with information on pricing levels and fee structures for the Funds and comparative funds. The Directors focused on the comparative analysis of the effective management fees and total expense ratios of each Fund versus the effective management fees and expense ratios of a group of funds selected by Lipper as being similar to each Fund (the “Expense Group”). In reviewing comparative costs, each Fund’s contractual
 
(continues)     37
 


Other Fund information
(Unaudited)
 
Delaware Investments® Global Dividend and Income Fund, Inc.
 
Board Consideration of New Investment Advisory Agreement (continued)
 
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 account any applicable breakpoints and fee limitations. Each Fund’s total expenses were also compared with those of its Expense Group. The Directors also considered fees paid to Delaware Investments for nonmanagement services. At the September 3, 2009 meeting, DMC advised the Board that the more recent comparative expenses for the Funds remained consistent with the previous review in May 2009 and, consequently, the Directors concluded that expenses of the Funds were satisfactory.
 
The Board also considered the Expense Agreement under negotiation in evaluating Fund expenses. The Directors expected that the Expense Agreement would provide that LNC and Macquarie Group would pay or reimburse the Funds for all reasonable out-of-pocket costs and expenses in connection with the Transaction and the consideration of the New Investment Advisory Agreements (subject to certain limited exceptions).
 
Based on information provided by DMC and Macquarie Group, the Board concluded that neither the Transaction nor the New Investment Advisory Agreements likely would have an adverse effect on the Funds’ expenses because (i) each Fund’s contractual fee rates under the New Investment Advisory Agreement would remain the same; (ii) under the Expense Agreement, the Funds would be reimbursed for all reasonable out-of-pocket costs and expenses in connection with the Transaction and the related proxy solicitation (subject to certain limited exceptions); and (iii) the expense ratios of certain Funds might decline as a result of the possible increased investment in Delaware Investments by Macquarie Group, as discussed below under “Economies of Scale.”
 
Management Profitability. At their meeting on September 3, 2009, the Board evaluated DMC’s profitability in connection with the operation of the Funds. The Board had previously considered DMC’s profitability in connection with the operation of the Funds at its May 2009 meeting. At that meeting, the Board reviewed an analysis that addressed the overall profitability of Delaware Investments’ business in providing management and other services to each of the Funds and the Delaware Investments Family of Funds as a whole. Specific attention was given to the methodology followed in allocating costs for the purpose of determining profitability.
 
At the May 2009 meeting, representatives of DMC had stated that the level of profits of DMC, to a certain extent, reflect operational cost savings and efficiencies initiated by Delaware Investments (including DMC and its affiliates that provide services to the Funds). The Board considered Delaware Investments’ efforts to improve services provided to Fund shareholders and to meet additional regulatory and compliance requirements resulting from recent industry-wide U.S. Securities and Exchange Commission initiatives. At that meeting, the Board found that the management fees were reasonable in light of the services rendered and the level of profitability of DMC. At the September 3, 2009 meeting, DMC advised the Board that DMC did not expect the Transaction to affect materially the profitability of Delaware Investments compared to the level of profitability considered during the May 2009 review. Moreover, the Directors reviewed pro forma balance sheets of certain key companies in Delaware Investments as of June 30, 2009 (which were provided by Macquarie Group and DMC in response to the Directors’ requests) and evaluated the projections of Delaware Investments’ capitalization following the Transaction for purposes of evaluating the financial ability of Delaware Investments to continue to provide the nature, extent, and quality of services as it had under the Current Investment Advisory Agreement.
 
Based on information provided by DMC and Macquarie Group, the Board concluded that DMC and Delaware Investments would be sufficiently capitalized following the Transaction to continue the same level and quality of services to the Funds under the New Investment Advisory Agreements as was the case under the Current Investment Advisory Agreements. The Board also concluded that Macquarie Group had sufficient financial strength and resources, as well as an ongoing commitment to a global asset management business, to continue investing in Delaware Investments, including DMC, to the extent that Macquarie Group determined it was appropriate. Finally, because services and costs were expected to be substantially the same (and DMC had represented that, correspondingly, profitability would be about the same), under the New Investment Advisory Agreements as under the Current Investment Advisory Agreements, the Directors concluded that the profitability of Delaware Investments would not result in an inequitable charge on the Funds or their shareholders. Accordingly, the Board concluded that the fees charged under the New Investment Advisory Agreements would be reasonable in light of the services to be provided and the expected profitability of DMC.
 
Economies of Scale. As a closed-end fund, the Funds do not issue shares on a continuous basis. Fund assets increase only to the extent that the values of the underlying securities in the Fund increase. Accordingly, the Board determined that the Funds were not likely to experience significant economies of scale due to asset growth and, therefore, a fee schedule with breakpoints to pass the benefit of economies of scale on to shareholders was not likely to provide the intended effect.
 
The Board also acknowledged Macquarie Group’s statement that the Transaction would not by itself immediately provide additional economies of scale given Macquarie Group’s limited presence in the U.S. mutual fund market. Nonetheless, the Directors concluded that additional economies of scale could potentially be achieved in the future if DMC were owned by Macquarie Group as a result of Macquarie Group’s willingness to invest further in Delaware Investments if appropriate opportunities arise.
 
Fall-Out Benefits. The Board acknowledged that DMC would continue to benefit from soft dollar arrangements using portfolio brokerage of each Fund that invests in equity securities and that DMC’s profitability would likely be somewhat lower without the benefit of practices with respect to allocating Fund portfolio brokerage for brokerage and research services. The Board also considered that Macquarie Group and Delaware Investments may derive
 
38
 


reputational, strategic, and other benefits from their association with the Delaware Investments Family of Funds, and evaluated 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 and the benefits from allocation of Fund brokerage to improve trading efficiencies. However, the Board concluded that (i) any such benefits under the New Investment Advisory Agreements would not be dissimilar from those existing under the Current Investment Advisory Agreements; (ii) such benefits did not impose a cost or burden on the Funds or their shareholders; and (iii) such benefits would probably have an indirectly beneficial effect on the Funds and their shareholders because of the added importance that DMC and Macquarie Group might attach to the Funds as a result of the fall-out benefits that the Funds conveyed.
 
Board Review of Macquarie Group. The Directors reviewed detailed information supplied by Macquarie Group about its operations as well as other information regarding Macquarie Group provided by independent legal counsel to the independent Directors. Based on this review, the Directors concluded that Delaware Investments would continue to have the financial ability to maintain the high quality of services required by the Funds. The Directors noted that there would be a limited transition period during which some services previously provided by LNC to Delaware Investments would continue to be provided by LNC after the Closing, and concluded that this arrangement would help minimize disruption in Delaware Investments’ provision of services to the Funds following the Transaction.
 
The Board considered Macquarie Group’s current intention to leave the Funds’ other service providers in place. The Board also considered Macquarie Group’s current strategic plans to increase its asset management activities, one of its core businesses, particularly in North America, and its statement that its acquisition of DMC is an important component of this strategic growth and the establishment of a significant presence in the United States. Based in part on the information provided by DMC and Macquarie Group, the Board concluded that Macquarie Group’s acquisition of Delaware Investments could potentially enhance the nature, quality, and extent of services provided to the Funds and their shareholders.
 
Conclusion. The Board concluded that the advisory fee rate under each New Investment Advisory Agreement was reasonable in relation to the services provided and that execution of the New Investment Advisory Agreement would be in the best interests of the shareholders. For each Fund, the Directors noted that they had concluded in their most recent advisory agreement continuance considerations in May 2009 that the management fees and total expense ratios were at acceptable levels in light of the quality of services provided to the Funds and in comparison to those of the Funds’ respective peer groups; that the advisory fee schedule would not be increased and would stay the same for all of the Funds; that the total expense ratio had not changed materially since that determination; and that DMC had represented that the overall expenses for each Fund were not expected to be adversely affected by the Transaction. The Directors also noted, with respect to the Funds that currently had the benefit of voluntary fee limitations, that Macquarie Group had no present intention to cause DMC to alter any voluntary expense limitations or reimbursements currently in effect. On that basis, the Trustees concluded that the total expense ratios and proposed advisory fees for the Funds anticipated to result from the Transaction were acceptable. In approving each New Investment Advisory Agreement, the Board stated that it anticipated reviewing the continuance of the New Investment Advisory Agreement in advance of the expiration of the initial two-year period.
 
39
 


Board of trustees/directors
and officers addendum
 
Delaware Investments® Family of Funds
 
A fund is governed by a Board of Trustees/Directors (“Trustees”), which has oversight responsibility for the management of a fund’s business affairs. Trustees establish procedures and oversee and review the performance of the investment manager and others who perform services for the fund. The independent fund trustees, in particular, are advocates for shareholder interests. Each trustee has served in that capacity since he or she was elected to or appointed to the Board of Trustees, and will continue to serve until his or her retirement or the election of a new trustee in his or her place. The following is a list of the Trustees and Officers with certain background and related information.
 
Number of
Portfolios in Fund Other
Name, Complex Overseen Directorships
Address, Position(s) Length of Principal Occupation(s) by Trustee Held by
and Birth Date Held with Fund(s) Time Served During Past 5 Years or Officer Trustee or Officer
     Interested Trustees
Patrick P. Coyne1 Chairman, Chairman and Trustee Patrick P. Coyne has served in 80 Director —
2005 Market Street President, since August 2006 various executive capacities   Kaydon Corp.
Philadelphia, PA Chief Executive at different times at
19103 Officer, and President and Delaware Investments.2
Trustee Chief Executive Officer
April 1963 since August 2006
     Independent Trustees
Thomas L. Bennett Trustee Since Private Investor — 80 Director —
2005 Market Street March 2005 (March 2004–Present) Bryn Mawr
Philadelphia, PA Bank Corp. (BMTC)
19103 (April 2007–Present)
 
October 1947  
John A. Fry Trustee Since President — 80 Director —
2005 Market Street January 2001 Franklin & Marshall College Community Health
Philadelphia, PA (June 2002–Present) Systems
19103
           
May 1960  
Anthony D. Knerr Trustee Since Founder and Managing Director — 80 None
2005 Market Street April 1990 Anthony Knerr & Associates
Philadelphia, PA (Strategic Consulting)
19103 (1990–Present)
     
December 1938
Lucinda S. Landreth Trustee Since Chief Investment Officer — 80 None
2005 Market Street March 2005 Assurant, Inc.
Philadelphia, PA (Insurance)
19103 (2002–2004)
       
June 1947
Ann R. Leven Trustee Since Consultant — 80 None
2005 Market Street October 1989 ARL Associates
Philadelphia, PA (Financial Planning)
19103 (1983–Present)
     
November 1940  
 
40
 


Number of
Portfolios in Fund Other
Name, Complex Overseen Directorships
Address, Position(s) Length of Principal Occupation(s) by Trustee Held by
and Birth Date Held with Fund(s) Time Served During Past 5 Years or Officer Trustee or Officer
     Independent Trustees (continued)
Thomas F. Madison Trustee Since President and Chief 80 Director and Chair of
2005 Market Street May 19973 Executive Officer — Compensation
Philadelphia, PA MLM Partners, Inc. Committee,
19103 (Small Business Investing Governance Committee
and Consulting) Member
February 1936 (January 1993–Present) — CenterPoint Energy
   
  Lead Director and Chair
of Audit
and Governance
  Committees,
Member of
  Compensation
  Committee — Digital
River, Inc.
   
Director and Chair of
Governance
Committee, Audit
  Committee Member —
Rimage Corporation
   
Director and Chair of
Compensation
Committee — Spanlink
Communications
   
Lead Director and Chair
of Compensation and
Governance
Committees —
Valmont Industries, Inc.
Janet L. Yeomans Trustee Since Vice President and Treasurer 80 None
2005 Market Street April 1999 (January 2006–Present)
Philadelphia, PA Vice President — Mergers & Acquisitions  
19103 (January 2003–January 2006), and
Vice President
July 1948 (July 1995–January 2003)
3M Corporation
J. Richard Zecher Trustee Since Founder — 80 Director and Audit
2005 Market Street March 2005 Investor Analytics Committee Member —
Philadelphia, PA (Risk Management) Investor Analytics
19103 (May 1999–Present)
       
July 1940 Founder —
Sutton Asset Management
(Hedge Fund)
(September 1996–Present)  
 
(continues)     41
 


Number of
Portfolios in Fund Other
Name, Complex Overseen Directorships
Address, Position(s) Length of Principal Occupation(s) by Trustee Held by
and Birth Date Held with Fund(s) Time Served During Past 5 Years or Officer Trustee or Officer
     Officers
David F. Connor Vice President, Vice President since David F. Connor has served as 80 None4
2005 Market Street Deputy General September 2000 Vice President and Deputy
Philadelphia, PA Counsel, and Secretary and Secretary General Counsel of
19103 since Delaware Investments
October 2005 since 2000.
December 1963
Daniel V. Geatens Vice President Treasurer Daniel V. Geatens has served 80 None4
2005 Market Street and Treasurer since in various capacities at
Philadelphia, PA October 2007 different times at
19103 Delaware Investments.
October 1972  
David P. O’Connor Senior Vice Senior Vice President, David P. O’Connor has served in 80 None4
2005 Market Street President, General Counsel, and various executive and legal
Philadelphia, PA General Counsel, Chief Legal Officer capacities at different times
19103 and Chief since at Delaware Investments.
Legal Officer October 2005
February 1966
Richard Salus Senior Chief Financial Richard Salus has served in 80 None4
2005 Market Street Vice President Officer since various executive capacities
Philadelphia, PA and November 2006 at different times at
19103 Chief Financial Delaware Investments.
Officer
October 1963  
1 Patrick P. Coyne is considered to be an “Interested Trustee” because he is an executive officer of the Fund’s(s’) investment advisor.
2 Delaware Investments is the marketing name for Delaware Management Holdings, Inc. and its subsidiaries, including the Fund’s(s’) investment advisor and administrator.
3 In 1997, several funds managed by Voyageur Fund Managers, Inc. (the “Voyageur Funds”) were incorporated into the Delaware Investments Family of Funds. Mr. Madison served as a director of the Voyageur Funds from 1993 until 1997.
4 David F. Connor, Daniel V. Geatens, David P. O’Connor, and Richard Salus serve in similar capacities for the six portfolios of the Optimum Fund Trust, which have the same investment advisor and administrator as the Fund.
 
42
 


About the organization
 
This annual 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. Your Fund’s Board of Directors approved a share repurchase program in 1994 that authorizes the Fund to purchase up to 10% of its outstanding shares on the floor of the New York Stock Exchange.
 
 
Board of Directors
 
Patrick P. Coyne
Chairman, President,
and Chief Executive Officer
Delaware Investments 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
Consultant
ARL Associates
New York, NY
 
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
Affiliated officers
 
David F. Connor
Vice President, Deputy General Counsel,
and Secretary
Delaware Investments Family of Funds
Philadelphia, PA
 
Daniel V. Geatens
Vice President and Treasurer
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
 
Richard Salus
Senior Vice President and
Chief Financial Officer
Delaware Investments Family of Funds
Philadelphia, PA
 
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 is 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.
 
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 19103-7094
 
Independent registered public
accounting firm
Ernst & Young LLP
2001 Market Street
Philadelphia, PA 19103
 
Registrar and stock transfer agent
BNY Mellon Shareowner Services
480 Washington Blvd.
Jersey City, NJ 07310
800 851-9677
 
For securities dealers
and financial institutions
representatives
800 362-7500
 
Web site
www.delawareinvestments.com
Delaware Investments is the marketing name of Delaware Management Holdings, Inc. and its subsidiaries.
 
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 BNY Mellon Shareowner Services 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.
 
 
Audit committee member
 
43
 


Item 2. Code of Ethics
 
    The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. A copy of the registrant’s Code of Business Ethics has been posted on the Delaware Investments Internet Web site at www.delawareinvestments.com. Any amendments to the Code of Business Ethics, and information on any waiver from its provisions granted by the registrant, will also be posted on this Web site within five business days of such amendment or waiver and will remain on the Web site for at least 12 months.
 
Item 3. Audit Committee Financial Expert
 
    The registrant’s Board of Trustees/Directors has determined that each member of the registrant’s Audit Committee is an audit committee financial expert, as defined below. For purposes of this item, an “audit committee financial expert” is a person who has the following attributes:
 
    a. An understanding of generally accepted accounting principles and financial statements;
 
    b. The ability to assess the general application of such principles in connection with the accounting for estimates, accruals, and reserves;
 
    c. Experience preparing, auditing, analyzing, or evaluating financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the registrant’s financial statements, or experience actively supervising one or more persons engaged in such activities;
 
    d. An understanding of internal controls and procedures for financial reporting; and
 
    e. An understanding of audit committee functions.
 
An “audit committee financial expert” shall have acquired such attributes through:
 
    a. Education and experience as a principal financial officer, principal accounting officer, controller, public accountant, or auditor or experience in one or more positions that involve the performance of similar functions;
 
    b. Experience actively supervising a principal financial officer, principal accounting officer, controller, public accountant, auditor, or person performing similar functions;
 


    c. Experience overseeing or assessing the performance of companies or public accountants with respect to the preparation, auditing, or evaluation of financial statements; or
 
    d. Other relevant experience.
 
    The registrant’s Board of Trustees/Directors has also determined that each member of the registrant’s Audit Committee is independent. In order to be “independent” for purposes of this item, the Audit Committee member may not: (i) other than in his or her capacity as a member of the Board of Trustees/Directors or any committee thereof, accept directly or indirectly any consulting, advisory or other compensatory fee from the issuer; or (ii) be an “interested person” of the registrant as defined in Section 2(a)(19) of the Investment Company Act of 1940.
 
    The names of the audit committee financial experts on the registrant’s Audit Committee are set forth below:
 
    Thomas L. Bennett 1
    John A. Fry 
    Thomas F. Madison 
    J. Richard Zecher
 
Item 4. Principal Accountant Fees and Services
 
    (a) Audit fees.
 
    The aggregate fees billed for services provided to the registrant by its independent auditors for the audit of the registrant’s annual financial statements and for services normally provided by the independent auditors in connection with statutory and regulatory filings or engagements were $10,438 for the fiscal year ended November 30, 2009.
 
_______________________  
1 The instructions to Form N-CSR require disclosure on the relevant experience of persons who qualify as audit committee financial experts based on “other relevant experience.” The Board of Trustees/Directors has determined that Mr. Bennett qualifies as an audit committee financial expert by virtue of his education, Chartered Financial Analyst designation, and his experience as a credit analyst, portfolio manager and the manager of other credit analysts and portfolio managers.
 


    The aggregate fees billed for services provided to the registrant by its independent auditors for the audit of the registrant’s annual financial statements and for services normally provided by the independent auditors in connection with statutory and regulatory filings or engagements were $11,200 for the fiscal year ended November 30, 2008.
 
    (b) Audit-related fees.
 
    The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the registrant’s financial statements and not reported under paragraph (a) of this Item were $0 for the fiscal year ended November 30, 2009.
 
    The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the financial statements of the registrant’s investment adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $0 for the registrant’s fiscal year ended November 30, 2009.
 
    The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the registrant’s financial statements and not reported under paragraph (a) of this Item were $0 for the fiscal year ended November 30, 2009.
 
    The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the financial statements of the registrant’s investment adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $0 for the registrant’s fiscal year ended November 30, 2008.
 
    (c) Tax fees.
 
    The aggregate fees billed by the registrant’s independent auditors for tax-related services provided to the registrant were $3,410 for the fiscal year ended November 30, 2009. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%. These tax-related services were as follows: review of income tax returns and review of annual excise distribution calculations.
 
    The aggregate fees billed by the registrant’s independent auditors for tax-related services provided to the registrant’s investment adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $0 for the registrant’s fiscal year ended November 30, 2009.
 


    The aggregate fees billed by the registrant’s independent auditors for tax-related services provided to the registrant were $2,567 for the fiscal year ended November 30, 2008. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%. These tax-related services were as follows: review of income tax returns and review of annual excise distribution calculations.
 
    The aggregate fees billed by the registrant’s independent auditors for tax-related services provided to the registrant’s adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $0 for the registrant’s fiscal year ended November 30, 2008.
 
    (d) All other fees.
 
    The aggregate fees billed for all services provided by the independent auditors to the registrant other than those set forth in paragraphs (a), (b) and (c) of this Item were $0 for the fiscal year ended November 30, 2009.
 
    The aggregate fees billed for all services other than those set forth in paragraphs (b) and (c) of this Item provided by the registrant’s independent auditors to the registrant’s adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $0 for the registrant’s fiscal year ended November 30, 2009.
 
    The aggregate fees billed for all services provided by the independent auditors to the registrant other than those set forth in paragraphs (a), (b) and (c) of this Item were $0 for the fiscal year ended November 30, 2008.
 
    The aggregate fees billed for all services other than those set forth in paragraphs (b) and (c) of this Item provided by the registrant’s independent auditors to the registrant’s adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $0 for the registrant’s fiscal year ended November 30, 2008.
 
    (e) The registrant’s Audit Committee has established pre-approval policies and procedures as permitted by Rule 2-01(c)(7)(i)(B) of Regulation S-X (the “Pre-Approval Policy”) with respect to services provided by the registrant’s independent auditors. Pursuant to the Pre-Approval Policy, the Audit Committee has pre-approved the services set forth in the table below with respect to the registrant up to the specified fee limits. Certain fee limits are based on aggregate fees to the registrant and other registrants within the Delaware Investments® Family of Funds.
 

 
Service Range of Fees
Audit Services   
Statutory audits or financial audits for new Funds up to $25,000 per Fund
Services associated with SEC registration statements (e.g., Form N-1A, Form N-14, etc.), periodic reports and other documents filed with the SEC or other documents issued in connection with securities offerings (e.g., comfort letters for closed-end Fund offerings, consents), and assistance in responding to SEC comment letters up to $10,000 per Fund
Consultations by Fund management as to the accounting or disclosure treatment of transactions or events and/or the actual or potential impact of final or proposed rules, standards or interpretations by the SEC, FASB, or other regulatory or standard-setting bodies (Note: Under SEC rules, some consultations may be considered “audit-related services” rather than “audit services”) up to $25,000 in the aggregate
Audit-Related Services  
Consultations by Fund management as to the accounting or disclosure treatment of transactions or events and /or the actual or potential impact of final or proposed rules, standards or interpretations by the SEC, FASB, or other regulatory or standard-setting bodies (Note: Under SEC rules, some consultations may be considered “audit services” rather than “audit-related services”) up to $25,000 in the aggregate
Tax Services  
U.S. federal, state and local and international tax planning and advice (e.g., consulting on statutory, regulatory or administrative developments, evaluation of Funds’ tax compliance function, etc.) up to $25,000 in the aggregate
U.S. federal, state and local tax compliance (e.g., excise distribution reviews, etc.) up to $5,000 per Fund
Review of federal, state, local and international income, franchise and other tax returns up to $5,000 per Fund
 
     Under the Pre-Approval Policy, the Audit Committee has also pre-approved the services set forth in the table below with respect to the registrant’s investment adviser and other entities controlling, controlled by or under common control with the investment adviser that provide ongoing services to the registrant (the “Control Affiliates”) up to the specified fee limit. This fee limit is based on aggregate fees to the investment adviser and its Control Affiliates.
 
Service Range of Fees
Non-audit Services   
Services associated with periodic reports and other documents filed with the SEC and assistance in responding to SEC comment letters up to $10,000 in the aggregate
   
    The Pre-Approval Policy requires the registrant’s independent auditors to report to the Audit Committee at each of its regular meetings regarding all services initiated since the last such report was rendered, including those services authorized by the Pre-Approval Policy.
 
    (f) Not applicable.
 
    (g) The aggregate non-audit fees billed by the registrant’s independent auditors for services rendered to the registrant and to its investment adviser and other service providers under common control with the adviser were $203,124 and $256,569 for the registrant’s fiscal years ended November 30, 2009 and November 30, 2008, respectively.
 


    (h) In connection with its selection of the independent auditors, the registrant’s Audit Committee has considered the independent auditors’ provision of non-audit services to the registrant’s investment adviser and other service providers under common control with the adviser that were not required to be pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X. The Audit Committee has determined that the independent auditors’ provision of these services is compatible with maintaining the auditors’ independence.
 


Item 5. Audit Committee of Listed Registrants
 
    The registrant has a separately-designated standing Audit Committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934. The members of the registrant’s Audit Committee are Thomas L. Bennett, John A. Fry, Thomas F. Madison and J. Richard Zecher.
 
Item 6. Investments
 
    (a) Included as part of report to shareholders filed under Item 1 of this Form N-CSR.
 
    (b) Divestment of securities in accordance with Section 13(c) of the Investment Company Act of 1940.
 
    Not applicable.
 
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
 
    The registrant has formally delegated to its investment adviser(s) (the “Adviser”) the ability to make all proxy voting decisions in relation to portfolio securities held by the registrant. If and when proxies need to be voted on behalf of the registrant, the Adviser will vote such proxies pursuant to its Proxy Voting Policies and Procedures (the “Procedures”). The Adviser has established a Proxy Voting Committee (the “Committee”) which is responsible for overseeing the Adviser’s proxy voting process for the registrant. One of the main responsibilities of the Committee is to review and approve the Procedures to ensure that the Procedures are designed to allow the Adviser to vote proxies in a manner consistent with the goal of voting in the best interests of the registrant.
 
    In order to facilitate the actual process of voting proxies, the Adviser has contracted with Institutional Shareholder Services (“ISS”), a wholly owned subsidiary of RiskMetrics Group ("RiskMetrics"), to analyze proxy statements on behalf of the registrant and other Adviser clients and vote proxies generally in accordance with the Procedures. The Committee is responsible for overseeing ISS/RiskMetrics’s proxy voting activities. If a proxy has been voted for the registrant, ISS/RiskMetrics will create a record of the vote. By no later than August 31 of each year, information (if any) regarding how the registrant voted proxies relating to portfolio securities during the most recently disclosed 12-month period ended June 30 is available without charge (i) through the registrant’s Web site at http://www.delawareinvestments.com; and (ii) on the Commission’s Web site at http://www.sec.gov.
 
    The Procedures contain a general guideline that recommendations of company management on an issue (particularly routine issues) should be given a fair amount of weight in determining how proxy issues should be voted. However, the Adviser will normally vote against management’s position when it runs counter to its specific Proxy Voting Guidelines (the “Guidelines”), and the Adviser will also vote against management’s recommendation when it believes that such position is not in the best interests of the registrant.
 


    As stated above, the Procedures also list specific Guidelines on how to vote proxies on behalf of the registrant. Some examples of the Guidelines are as follows: (i) generally vote for shareholder proposals asking that a majority or more of directors be independent; (ii) generally vote against proposals to require a supermajority shareholder vote; (iii) votes on mergers and acquisitions should be considered on a case-by-case basis, determining whether the transaction enhances shareholder value; (iv) generally vote against proposals to create a new class of common stock with superior voting rights; (v) generally vote re-incorporation proposals on a case-by-case basis; (vi) votes with respect to equity-based compensation plans are generally determined on a case-by-case basis; and (vii) generally vote for proposals requesting reports on the level of greenhouse gas emissions from a company’s operations and products.
 
    Because the registrant has delegated proxy voting to the Adviser, the registrant is not expected to encounter any conflict of interest issues regarding proxy voting and therefore does not have procedures regarding this matter. However, the Adviser does have a section in its Procedures that addresses the possibility of conflicts of interest. Most proxies which the Adviser receives on behalf of the registrant are voted by ISS/RiskMetrics in accordance with the Procedures. Because almost all registrant proxies are voted by ISS/RiskMetrics pursuant to the pre-determined Procedures, it normally will not be necessary for the Adviser to make an actual determination of how to vote a particular proxy, thereby largely eliminating conflicts of interest for the Adviser during the proxy voting process. In the very limited instances where the Adviser is considering voting a proxy contrary to ISS/RiskMetrics’s recommendation, the Committee will first assess the issue to see if there is any possible conflict of interest involving the Adviser or affiliated persons of the Adviser. If a member of the Committee has actual knowledge of a conflict of interest, the Committee will normally use another independent third party to do additional research on the particular proxy issue in order to make a recommendation to the Committee on how to vote the proxy in the best interests of the registrant. The Committee will then review the proxy voting materials and recommendation provided by ISS/RiskMetrics and the independent third party to determine how to vote the issue in a manner which the Committee believes is consistent with the Procedures and in the best interests of the registrant.
 


Item 8. Portfolio Managers of Closed-End Management Investment Companies

    The following chart lists certain information about types of other accounts for which the portfolio managers are primarily responsible as of November 30, 2009.  Any accounts managed in a personal capacity appear under “Other Accounts” along with other accounts managed on a professional basis.  The personal account information is current as of the most recent calendar quarter-end for which account statements are available.
 
 
No. of
Accounts
Total Assets
in Accounts Fee
No. of Accounts with
Performance-Based
Fees
Total Assets
in Accounts with
Performance-
Based
Fee
Damon J. Andres
       
Registered
Investment
Companies
11
$596.0  million
0
$0
Other pooled
Investment Vehicles
0
$0
0
$0
Other Accounts
4
$72.1 million
0
$0
Kristen E. Bartholdson
       
Registered
Investment
Companies
13
$1.9 billion
0
$0
Other pooled
Investment Vehicles
0
$0
0
$0
Other Accounts
21
$2.5 billion
2
$590.0 million
Todd A. Bassion
       
Registered
Investment
Companies
10
$731.0 million
0
$0
Other pooled
Investment Vehicles
0
$0
0
$0
Other Accounts
13
$113.9 million
0
$0
Thomas H. Chow
       
Registered
Investment
Companies
12
$10.9 billion
0
$0
Other pooled
Investment Vehicles
0
$0
0
$0
Other Accounts
13
$1.3 billion
0
$0
Roger A. Early
       
Registered
Investment
Companies
20
$13.1 billion
0
$0
 


Other pooled
Investment Vehicles
0
$0
0
$0
Other Accounts
37
$4.6 billion
0
$0
Edward A. Gray
       
Registered
Investment
Companies
10
$731.0 million
0
$0
Other pooled
Investment Vehicles
0
0
0
$0
Other Accounts
5
$113.0 million
0
$0
Nikhil G. Lalvani
       
Registered
Investment
Companies
13
$1.9 billion
0
$0
Other pooled
Investment Vehicles
0
$0
0
$0
Other Accounts
23
$2.5 billion
2
$590.0 million
Anthony A. Lombardi
       
Registered
Investment
Companies
13
$1.9 billion
0
$0
Other pooled
Investment Vehicles
0
$0
0
$0
Other Accounts
26
$2.5 billion
2
$590.0 million
Kevin P. Loome
       
Registered
Investment
Companies
18
$10.1 billion
0
$0
Other pooled
Investment Vehicles
0
$0
0
$0
Other Accounts
11
$1.4 billion
0
$0
D. Tysen Nutt, Jr.
       
Registered
Investment
Companies
13
$1.9 billion
0
$0
Other pooled
Investment Vehicles
0
$0
0
$0
Other Accounts
28
$2.5 billion
2
$590.0 million
Robert A. Vogel, Jr.
       
Registered
Investment
Companies
13
$1.9 billion
0
$0
Other pooled
Investment Vehicles
0
$0
0
$0
Other Accounts
29
$2.5 billion
2
$590.0 million
 


Nashira Wynn
       
Registered
Investment
Companies
13
$1.9 billion
0
$0
Other pooled
Investment Vehicles
0
$0
0
$0
Other Accounts
24
2.5 billion
2
$590.0 million
Babak Zenouzi
       
Registered
Investment
Companies
11
$596.0 million
0
$0
Other pooled
Investment Vehicles
0
$0
0
$0
Other Accounts
3
$72.0 million
0
$0
 
DESCRIPTION OF MATERIAL CONFLICTS OF INTEREST
    Individual portfolio managers may perform investment management services for other funds or accounts similar to those provided to the Funds and the investment action for such other fund or account and the Funds may differ. For example, an account or fund may be selling a security, while another account or Fund may be purchasing or holding the same security. As a result, transactions executed for one fund or account may adversely affect the value of securities held by another fund, account or Fund. Additionally, the management of multiple other funds or accounts and the Funds may give rise to potential conflicts of interest, as a portfolio manager must allocate time and effort to multiple funds or accounts and the Funds. A portfolio manager may discover an investment opportunity that may be suitable for more than one account or fund. The investment opportunity may be limited, however, so that all funds or accounts for which the investment would be suitable may not be able to participate. The Manager has adopted procedures designed to allocate investments fairly across multiple funds or accounts.
 
    Two of the accounts managed by the portfolio managers have a performance-based fee. This compensation structure presents a potential conflict of interest. The portfolio manager has an incentive to manage this account so as to enhance its performance, to the possible detriment of other accounts for which the investment manager does not receive a performance-based fee.
 
    A portfolio manager’s management of personal accounts also may present certain conflicts of interest. While Delaware’s code of ethics is designed to address these potential conflicts, there is no guarantee that it will do so.



Compensation Structure
    Each portfolio’s manager’s compensation consists of the following:
 
    Base Salary - - Each named portfolio manager receives a fixed base salary.  Salaries are determined by a comparison to industry data prepared by third parties to ensure that portfolio manager salaries are in line with salaries paid at peer investment advisory firms.
 
Bonus - - (Mr. Nutt, Ms. Bartholdson, Mr. Lalvani, Mr. Lombardi, Mr. Vogel and Ms. Wynn only) Each named portfolio manager is eligible to receive an annual cash bonus.  The bonus pool is determined by the revenues associated with the products a portfolio manager manages.  Delaware keeps a percentage of the revenues and the remaining percentage of revenues (minus appropriate expenses associated with relevant product and the investment management team) create the "bonus pool" for the product.  Various members of the team have the ability to earn a percentage of the bonus pool with the most senior contributor having the largest share.  The pool is allotted based on subjective factors and objective factors.  The primary objective factor is the performance of the funds managed relative to the performance of the appropriate Lipper peer groups and the performance of institutional composites relative to the appropriate indices.  Performance is measured as the result of one's standing in the Lipper peer groups on a one-year, three-year and five-year basis.  Three-year and five-year performance is weighted more heavily and there is no objective award for a fund whose performance falls below the 50th percentile for a given time period.
 
    Individual allocations of the bonus pool are based on individual performance measurements, both objective and subjective, as determined by senior management.
 
    (Mr. Andres and Mr. Zenouzi only) Each named portfolio manager is eligible to receive an annual cash bonus.  The bonus pool is determined by the revenues associated with the products a portfolio manager manages.  Delaware keeps a percentage of the revenues and the remaining percentage of revenues (minus appropriate expenses associated with relevant product and the investment management team) create the "bonus pool" for the product.  Various members of the team have the ability to earn a percentage of the bonus pool with the most senior contributor having the largest share.  The pool is allotted based on subjective factors (50%) and objective factors (50%).  The primary objective factor is the performance of the funds managed relative to the performance of the appropriate Lipper peer groups and the performance of institutional composites relative to the appropriate indices. Performance is measured as the result of one’s standing in the Lipper peer groups on a one-year, three-year and five-year basis.  Three-year and five-year performance is weighed more heavily and there is no objective award for a fund whose performance falls below the 50th percentile for a given time period.
 
    Individual allocations of the bonus pool are based on individual performance measurements, both objective and subjective, as determined by senior management.
 
    (Mr. Bassion and Mr. Gray only) Each named portfolio manager is eligible to receive an annual cash bonus. The bonus pool is determined by the revenues associated with the products a portfolio manager manages.  Delaware keeps a percentage of the revenues and the remaining percentage of revenues (minus appropriate expenses associated with relevant product and the investment management team) create the "bonus pool" for the product.  Various members of the team have the ability to earn a percentage of the bonus pool with the most senior contributor having the largest share.  The pool is allotted based on subjective factors (50%) and objective factors (50%).  The primary objective factor is the performance of the funds managed relative to the performance of the appropriate Lipper peer groups and the performance of institutional composites relative to the appropriate indices.   Performance is measured as the result of one’s standing in the Lipper peer groups on a one-year, three-year and five-year basis.  Three-year and five-year performance are weighted more heavily and there is no objective award for a fund whose performance falls below the 50th percentile for a given time period.


 
    Individual allocations of the bonus pool are based on individual performance measurements, both objective and subjective, as determined by senior management.
 
    (Mr. Chow, Mr. Early and Mr. Loome only) Due to transitioning of responsibilities of our fixed income managers over the past year, some of the managers’ bonuses may have been guaranteed for the past year. It is anticipated that going forward an objective component will be added to the bonus for each manager that is reflective of account performance relative to an appropriate peer group or database.  The following paragraph describes the structure of the non-guaranteed bonus.
 
    Each portfolio manager is eligible to receive an annual cash bonus, which is based on quantitative and qualitative factors.  There is one pool for bonus payments for the fixed income department.  The amount of the pool for bonus payments is determined by assets managed (including investment companies, insurance product-related accounts and other separate accounts), management fees and related expenses (including fund waiver expenses) for registered investment companies, pooled vehicles, and managed separate accounts.  Generally, 60%-75% of the bonus is quantitatively determined.  For more senior portfolio managers, a higher percentage of the bonus is quantitatively determined. For investment companies, each manager is compensated according the Fund’s Lipper or Morningstar peer group percentile ranking on a one-year, three-year, and five-year basis, with longer-term performance more heavily weighted.  For managed separate accounts the portfolio managers are compensated according to the composite percentile ranking against the Frank Russell and Callan Associates databases (or similar sources of relative performance data) on a one-year, three-year, and five-year basis, with longer term performance more heavily weighted.  There is no objective award for a fund that falls below the 50th percentile, but incentives reach maximum potential at the 25th-30th percentile.  There is a sliding scale for investment companies that are ranked above the 50th percentile.  The remaining 25%-40% portion of the bonus is discretionary as determined by Delaware Investments and takes into account subjective factors.
 
    For new and recently transitioned portfolio managers, the compensation may be weighted more heavily towards a portfolio manager’s actual contribution and ability to influence performance, rather than longer-term performance.  Management intends to move the compensation structure towards longer-term performance for these portfolio managers over time.
 
    Deferred Compensation – Each named portfolio manager is eligible to participate in the Lincoln National Corporation Executive Deferred Compensation & Supplemental/Excess Retirement Plan, which is available to all employees whose base salaries or established compensation exceed a designated threshold. The Plan is a non-qualified unfunded deferred compensation plan that permits participating employees to defer the receipt of a portion of their cash compensation.
 
    Stock Option Incentive Plan/Equity Compensation Plan - Portfolio managers may be awarded options, stock appreciation rights, restricted stock awards and restricted stock units (collectively, “Awards”) relating to the underlying shares of common stock of Delaware Investments U.S., Inc. pursuant to the terms of the Amended and Restated Delaware Investments U.S., Inc. Incentive Compensation Plan.



    The Amended and Restated Delaware Investments U.S., Inc. Incentive Compensation Plan was established in 2001 in order to: attract, retain and reward key employees of the company; enable such employees to acquire or increase an equity interest in the company in order to align the interest of such employees and the company; and provide such employees with incentives to expend their maximum efforts.  Subject to the terms of the plan and applicable award agreements, Awards typically vest in 25% increments on a four-year schedule, and shares of common stock underlying the Awards are issued after vesting.  Awards are granted under the plan from time to time by the company.  Awards may be based in part on seniority.  The fair market value of the shares of Delaware Investments U.S., Inc., is normally determined as of each March 31, June 30, September 30 and December 31.  The fair market value of shares of common stock underlying Awards granted on or after December 26, 2008 is determined by an independent appraiser utilizing an appraisal valuation methodology in compliance with Section 409A of the Internal Revenue Code of 1986, as amended and the regulations promulgated thereunder.  The fair market value of shares of common stock underlying Awards granted prior to December 26, 2008 is determined by an independent appraiser utilizing a formula based valuation methodology.  Shares issued typically must be held for six months and one day, after which time the stockholder may put them back to the company and the shares may be called back from the stockholder by the company from time to time, as the case may be.
 
    Other Compensation - Portfolio managers may also participate in benefit plans and programs available generally to all employees.
 
Ownership of Securities
    As of November 30, 2009, the portfolio managers did not own any shares of the Fund.
 
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 fourth 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: Chief Executive Officer  
Date: February 3, 2010

    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: Chief Executive Officer  
Date: February 3, 2010
 
 
RICHARD SALUS
By:    Richard Salus
Title: Chief Financial Officer  
Date: February 3, 2010


EX-99.CERT 2 exhibit99-cert.htm CERTIFICATION exhibit99-cert.htm
EXHIBIT 99.CERT
 
CERTIFICATION
 
I, Patrick P. Coyne, certify that:
 
1.         I have reviewed this report on Form N-CSR of Delaware Investments® Global Dividend and Income Fund, Inc.;
 
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
 
4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
 
        (a)         designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
  (b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
  (c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
 
        (d)         disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
 
5.         The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
 
  (a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
 
  (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
 
Date: February 3, 2010
  
PATRICK P. COYNE
By:    Patrick P. Coyne
Title: Chief Executive Officer
 

CERTIFICATION
 
I, Richard Salus, certify that:
 
1.         I have reviewed this report on Form N-CSR of Delaware Investments® Global Dividend and Income Fund, Inc.;
 
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
 
4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
 
        (a)         designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
  (b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
  (c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
 
        (d)         disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
 
5.         The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
 
  (a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
 
  (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
  
Date: February 3, 2010
  
RICHARD SALUS
By:    Richard Salus
Title: Chief Financial Officer


EX-99.906 CERT 3 exhibit99-906cert.htm CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 delaware.htm
EXHIBIT 99.906CERT
 
Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
 
In connection with the attached report of the registrant on Form N-CSR to be filed with the Securities and Exchange Commission (the “Report”), each of the undersigned officers of the registrant does hereby certify, to the best of such officer’s knowledge, that:
 
1.       The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and
 
2. The information contained in the Report fairly represents, in all material respects, the financial condition and results of operations of the registrant as of, and for, the periods presented in the Report.
  
Date: February 3, 2010
  
PATRICK P. COYNE
By:    Patrick P. Coyne
Title: Chief Executive Officer

 
RICHARD SALUS
By:    Richard Salus
Title: Chief Financial Officer 

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act, or other document authenticating, acknowledging, or otherwise adopting the signatures that appear in typed form within the electronic version of this written statement required by Section 906, has been provided to the registrant and will be retained by the registrant and furnished to the SEC or its staff upon request.
 

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