N-CSR 1 deglobaldividend_ncsr.htm CERTIFIED SHAREHOLDER REPORT deglobaldividend_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: May 31, 2010
 


Item 1. Reports to Stockholders
 
 
 
 
Semiannual Report Delaware
Investments®
Global Dividend
and Income
Fund, Inc.
 
  May 31, 2010 
   
 
 
 
 
 
 
 
 
 
The figures in the semiannual 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
 

      > Security type and country allocations 1
 
      > Statement of net assets 3
 
      > Statement of operations 12
 
      > Statements of changes in net assets 13
 
      > Statement of cash flows 14
 
      > Financial highlights 15
 
      > Notes to financial statements 16
 
      > Other Fund information 22
 
      > About the organization 26







Unless otherwise noted, views expressed herein are current as of May 31, 2010, 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, a member of Macquarie Group, refers to Delaware Management Holdings, Inc. and its subsidiaries. Macquarie Group refers to Macquarie Group Limited and its subsidiaries and affiliates worldwide.
 
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 their subsidiaries or related companies (Macquarie Group), 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.
 
© 2010 Delaware Management Holdings, Inc.
 
All third-party trademarks cited are the property of their respective owners.
 


Security type and country allocations
 
Delaware Investments® Global Dividend and Income Fund, Inc.
As of May 31, 2010
 
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 66.87 %
Consumer Discretionary 8.29 %
Consumer Staples 7.71 %
Diversified REITs 0.53 %
Energy 5.89 %
Financials 7.31 %
Health Care 6.46 %
Health Care REITs 1.25 %
Hotel REIT 0.15 %
Industrial REITs 0.07 %
Industrials 8.44 %
Information Technology 7.22 %
Mall REITs 0.87 %
Materials 2.97 %
Mortgage REITs 0.18 %
Multifamily REITs 0.88 %
Office REITs 0.91 %
Real Estate Management & Development 0.18 %
Self-Storage REIT 0.33 %
Shopping Center REITs 0.36 %
Single Tenant REIT 0.08 %
Specialty REITs 0.78 %
Telecommunications 3.66 %
Utilities 2.35 %
Convertible Preferred Stock 1.79 %
Convertible Bonds 10.84 %
Aerospace & Defense 0.59 %
Auto Parts & Equipment 0.24 %
Banking, Finance & Insurance 0.15 %
Basic Materials 1.19 %
Buildings & Materials 0.08 %
Cable, Media & Publishing 0.28 %
Computers & Technology 2.60 %
Energy 0.27 %
Health Care & Pharmaceuticals 2.21 %
Leisure, Lodging & Entertainment 0.52 %
Real Estate 0.34 %
Retail 0.19 %
Telecommunications 1.51 %
Transportation 0.28 %
Utilities 0.39 %
Corporate Bonds 40.06 %
Banking 1.07 %
Basic Industry 3.04 %
Brokerage 0.37 %
Capital Goods 1.65 %
Consumer Cyclical 2.54 %
Consumer Non-Cyclical 1.89 %
Energy 3.16 %
Finance & Investments 12.21 %
Media 5.02 %
Real Estate 0.13 %
Services Cyclical 2.81 %
Services Non-Cyclical 1.14 %
Technology & Electronics 0.83 %
Telecommunications 3.25 %
Utilities 0.95 %
Senior Secured Loans 0.50 %
Sovereign Debt 0.53 %
Supranational Banks 5.58 %
U.S. Treasury Obligation 0.43 %
Limited Partnership 0.08 %
Preferred Stock 0.01 %
Rights 0.06 %
Warrant 0.00 %
Securities Lending Collateral 11.77 %
Total Value of Securities 138.52 %
Obligation to Return Securities Lending Collateral (12.01 %)
Borrowing Under Line of Credit (33.49 %)
Receivables and Other Assets Net of Liabilities 6.98 %
Total Net Assets 100.00 %
 
(continues)     1
 


Security type and country allocations
 
Delaware Investments® Global Dividend and Income Fund, Inc.
 
Percentage
Country of Net Assets
Australia 6.19 %
Bermuda 0.89 %
Brazil 1.18 %
Canada 7.09 %
Cayman Islands 0.21 %
China 0.65 %
Finland 0.56 %
France 5.66 %
Germany 1.97 %
Hong Kong 3.07 %
Ireland 5.50 %
Italy 1.93 %
Japan 3.86 %
Jersey 0.12 %
Liberia 0.06 %
Luxembourg 1.53 %
Marshall Islands 0.13 %
Mexico 0.13 %
Netherlands 0.71 %
Republic of Korea 0.51 %
Singapore 0.76 %
Spain 0.67 %
Supranational 5.58 %
Sweden 1.05 %
Switzerland 0.43 %
Taiwan 1.35 %
United Kingdom 3.20 %
United States 71.76 %
Total 126.75 %

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 “Note 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.
 
2
 



Statement of net assets
 
Delaware Investments® Global Dividend and Income Fund, Inc.
May 31, 2010 (Unaudited)
 
           Number of       Value
Shares (U.S. $)
Common Stock – 66.87%v
Consumer Discretionary – 8.29%
*† Autoliv 3,300 $ 156,750
∏†= Avado Brands 272 0
Bayerische Motoren Werke 5,246 240,063
Comcast Class A 17,900 323,811
DIRECTV Class A 350 13,192
Don Quijote 8,100 209,032
± Esprit Holdings 14,807 83,566
Lowe’s 13,800 341,549
PPR 1,360 160,071
Publicis Groupe 5,483 225,076
± Round One 13,501 91,666
Techtronic Industries 236,000 205,289
± Toyota Motor 5,821 210,748
Vivendi 9,882 212,527
± Yue Yuen Industrial Holdings 59,500 180,020
  2,653,360
Consumer Staples – 7.71%
Archer-Daniels-Midland 10,800 272,916
± Chaoda Modern Agriculture Holdings 278,000 267,103
± Coca-Cola Amatil 21,665 197,997
CVS Caremark 9,200 318,595
± Greggs 23,645 153,097
Kimberly-Clark 4,400 267,080
Kraft Foods Class A 9,500 271,700
Metro 3,810 199,194
± Parmalat 96,659 231,088
Safeway 13,100 290,034
  2,468,804
Diversified REITs – 0.53%
Colonial Properties Trust 900 13,572
Investors Real Estate Trust 1,900 16,587
Lexington Realty Trust 3,300 20,493
Vornado Realty Trust 1,528 118,695
169,347
Energy – 5.89%
Chevron 3,900 288,093
± CNOOC 160,000 246,878
ConocoPhillips 5,800 300,787
Marathon Oil 8,800 273,592
National Oilwell Varco 6,500 247,845
Petroleo Brasileiro ADR 5,900 182,723
Total 1,841 85,284
Williams 13,200 260,700
1,885,902
Financials – 7.31%
Allstate 9,900 303,237
  AXA 11,148 181,359
± Banco Santander 21,364 214,956
Bank of New York Mellon 9,700 263,840
Fifth Street Finance 2,700 30,807
± Mitsubishi UFJ Financial Group 48,039 232,599
± Nordea Bank FDR 22,125   178,062
Solar Capital 8,100 172,854
± Standard Chartered 9,231 217,138
Travelers 6,800 336,396
UniCredit 101,116 209,761
2,341,009
Health Care – 6.46%
Alliance HealthCare Services 1,923 10,692
±† AstraZeneca 2,152 90,423
Bristol-Myers Squibb 12,200 283,162
Cardinal Health 9,100 313,859
Johnson & Johnson 4,200 244,860
Merck 8,600 289,734
± Novartis 3,078 138,769
Pfizer 18,616 283,522
Quest Diagnostics 4,500 237,375
Sanofi-Aventis 2,968 177,658
2,070,054
Health Care REITs – 1.25%
Cogdell Spencer 3,100 20,801
HCP 3,100 98,766
Health Care REIT 1,975 85,083
LTC Properties 700 17,990
Nationwide Health Properties 1,800 63,882
Omega Healthcare Investors 1,600 31,776
Ventas 1,725 80,989
399,287
Hotel REIT – 0.15%
* Host Hotels & Resorts 3,350 47,771
47,771
Industrial REITs – 0.07%
AMB Property 385 9,983
DCT Industrial Trust 3,200 15,488
  25,471
Industrials – 8.44%
± Asahi Glass 25,000 262,288
Compagnie de Saint-Gobain 4,190 159,030
Delta Air Lines 2 27
± Deutsche Post 12,942 192,158
Finmeccanica 16,964 176,032
Flextronics International 1,000 6,560
± ITOCHU 27,804 228,962
± Koninklijke Philips Electronics 7,623 226,001
*† Mobile Mini 363 5,808
Northrop Grumman 5,000 302,450
∏†= PT Holdings 100 1
± Singapore Airlines 23,550 238,110
Teleperformance 7,952 218,721
± Tomkins 61,560 215,951
  Vallourec 1,130 206,942
* Waste Management 8,100 263,331
2,702,372

(continues)     3
 


Statement of net assets
 
Delaware Investments® Global Dividend and Income Fund, Inc.
 
           Number of      Value
Shares (U.S. $)
Common Stock (continued)
Information Technology – 7.22%
CGI Group Class A 31,182 $ 487,312
± HTC 18,000 243,067
Intel 14,600 312,732
International Business Machines 2,400 300,624
Motorola 33,700 230,845
± Nokia 17,952 180,331
*† Sohu.com 4,700 207,740
Xerox 37,500 349,125
2,311,776
Mall REITs – 0.87%
Macerich 1,589 65,721
  Simon Property Group 2,313 196,674
Taubman Centers 400 16,196
278,591
Materials – 2.97%
Agrium 1,600 87,824
±* ArcelorMittal 3,892 117,473
duPont (E.I.) deNemours 7,800 282,126
Lafarge 3,229 184,137
± Rexam 18,325 82,802
* Vale ADR 7,200 195,768
950,130
Mortgage REITs – 0.18%
Chimera Investment 4,900 19,306
Cypress Sharpridge Investments 3,000 39,270
58,576
Multifamily REITs – 0.88%
Apartment Investment & Management 1,732 35,731
Associated Estates Realty 1,300 17,823
AvalonBay Communities 500 49,030
BRE Properties 1,000 40,860
Camden Property Trust 640 29,210
Equity Residential 2,400 108,312
280,966
Office REITs – 0.91%
* Alexandria Real Estate Equities 800 52,464
Boston Properties 800 61,344
Brandywine Realty Trust 2,300   26,657
Government Properties Income Trust 900 23,958
* Highwoods Properties 700 20,622
Mack-Cali Realty 3,200 105,536
290,581
Real Estate Management & Development – 0.18%
Starwood Property Trust 3,200 58,336
58,336
Self-Storage REIT – 0.33%
Public Storage 1,150 106,594
106,594
Shopping Center REITs – 0.36%
Cedar Shopping Centers 1,100 7,557
* Federal Realty Investment Trust 100 7,370
Kimco Realty 4,700 67,210
Ramco-Gershenson Properties Trust 1,600 17,296
Weingarten Realty Investors 700 14,602
114,035
Single Tenant REIT – 0.08%
National Retail Properties 1,200   26,376
26,376
Specialty REITs – 0.78%
* Digital Realty Trust 1,200 68,293
  Entertainment Properties Trust 1,200 49,128
Liberty Property Trust 600 18,486
* Plum Creek Timber 1,520 53,230
* Potlatch 1,730 60,273
249,410
Telecommunications – 3.66%
AT&T 9,600 233,280
†= Century Communications 125,000 0
Chunghwa Telecom ADR 9,879 188,294
* Frontier Communications 4,600 36,570
GeoEye 100 3,177
± Telstra 36,027 89,693
* TELUS 7,404 270,739
Verizon Communications 8,900 244,928
± Vodafone Group 53,206 105,381
1,172,062
Utilities – 2.35%
American Water Works 800 16,272
Edison International 9,300 300,948
Mirant 53 658
± National Grid 22,287 160,886
NorthWestern 700 18,438
Progress Energy 6,600 254,694
  751,896
Total Common Stock (cost $23,173,909) 21,412,706
 
Convertible Preferred Stock – 1.79%
Banking, Finance & Insurance – 0.73%
Aspen Insurance Holdings
          5.625% exercise price
          $29.28, expiration date 12/31/49 3,400 182,113
Citigroup 7.50% exercise price
          $3.94, expiration date 12/15/12 400 47,856
@ Fannie Mae 8.75% exercise price
          $32.45, expiration date 5/13/11 1,500 2,265
  232,234
Energy – 0.41%
El Paso Energy Capital Trust I
          4.75% exercise price $41.59,
          expiration date 3/31/28 1,950 70,200
Whiting Petroleum 6.25%
          exercise price $43.42,
          expiration date 12/31/49 300 62,022
  132,222
Health Care & Pharmaceuticals – 0.37%
Merck 6.00% exercise price
          $57.43, expiration date 8/13/10 6 1,487
Mylan 6.50% exercise price
          $17.08, expiration date 11/15/10 100 117,650
  119,137

4
 



          Number of Value
Shares       (U.S. $)
Convertible Preferred Stock (continued)
Telecommunications – 0.28%      
Lucent Technologies Capital Trust I
          7.75% exercise price
          $24.80, expiration date 3/15/17 120 $ 91,230
  91,230
Total Convertible Preferred Stock
(cost $625,122) 574,823
 
  Principal
Amount°
Convertible Bonds – 10.84%  
Aerospace & Defense – 0.59%
# AAR 144A 1.75% exercise price
          $29.43, expiration date 1/1/26 USD  90,000 82,800
*# L-3 Communications Holdings
          144A 3.00% exercise price
          $98.94, expiration date 8/1/35 105,000 106,706
  189,506
Auto Parts & Equipment – 0.24%
ArvinMeritor 4.00% exercise price
          $26.73, expiration date 2/15/27 95,000 77,425
    77,425
Banking, Finance & Insurance – 0.15%
Jefferies Group 3.875% exercise price
          $39.20, expiration date 11/1/29 50,000 48,313
  48,313
Basic Materials – 1.19%
# Owens-Brockway Glass Container
          144A 3.00% exercise price
          $47.47, expiration date 5/28/15 140,000 135,800
Rayonier TRS Holdings 3.75%
          exercise price $54.82,
          expiration date 10/15/12 135,000 140,231
# Sino-Forest 144A 5.00%
          exercise price $20.29,
          expiration date 8/1/13 95,000 105,331
  381,362
Buildings & Materials – 0.08%
Beazer Homes USA 4.625%
          exercise price $49.64,
          expiration date 6/15/24 25,000 25,219
25,219
Cable, Media & Publishing – 0.28%
VeriSign 3.25% exercise price
          $34.37, expiration date 8/15/37 95,000 89,300
89,300
Computers & Technology – 2.60%
Advanced Micro Devices
          6.00% exercise price $28.08,
          expiration date 5/1/15 70,000 68,250
        #144A 6.00% exercise price
          $28.08, expiration date 5/1/15 165,000 160,875
Euronet Worldwide 3.50%
          exercise price $40.48,
          expiration date 10/15/25 165,000 154,481
Hutchinson Technology 3.25%
          exercise price $36.43,
          expiration date 1/15/26 60,000 $ 50,700
Intel 2.95% exercise price $31.14,
          expiration date 12/15/35   60,000 59,025
Linear Technology 3.125%
          exercise price $45.36,
          expiration date 5/1/27 175,000 174,781
# Rovi 144A 2.625% exercise price
            $47.36, expiration date 3/15/40   105,000 106,575
SanDisk 1.00% exercise price
          $82.36, expiration date
          5/15/13 65,000 58,825
833,512
Energy – 0.27%
Chesapeake Energy 2.25%
          exercise price $85.89,
          expiration date 12/15/38 90,000 65,588
* Peabody Energy 4.75%
          exercise price $58.44,
          expiration date 12/15/41 20,000 20,150
  85,738
Health Care & Pharmaceuticals – 2.21%
# Allergan 144A 1.50%
          exercise price $63.33,
          expiration date 4/1/26 150,000 165,937
Amgen
          0.375% exercise price $79.48,
            expiration date 2/1/13 110,000 109,037
        #144A 0.375% exercise price
            $79.48, expiration date 2/1/13 60,000 59,475
Φ Hologic 2.00%
          exercise price $38.59,
          expiration date 12/15/37 105,000 90,169
Inverness Medical Innovations
          3.00% exercise price $43.98,
          expiration date 5/15/16 85,000 85,956
LifePoint Hospitals 3.25%
          exercise price $61.22,
          expiration date 8/15/25 90,000 85,613
Medtronic 1.625%
          exercise price $54.79,
          expiration date 4/15/13 110,000 112,062
708,249
Leisure, Lodging & Entertainment – 0.52%
# Gaylord Entertainment
          144A 3.75%
          exercise price $27.25,
          expiration date 10/1/14 65,000 75,319
International Game Technology
          3.25% exercise price $19.97,
          expiration date 5/1/14 65,000 78,569
Live Nation Entertainment
          2.875% exercise price $27.15,
          expiration date 7/15/27 14,000 12,215
166,103

(continues)     5
 
 


Statement of net assets
 
Delaware Investments® Global Dividend and Income Fund, Inc.
 
          Principal       Value
Amount° (U.S. $)
Convertible Bonds (continued)      
Real Estate – 0.34%
*# Digital Realty Trust 144A 5.50%
          exercise price $43.00,
          expiration date 4/15/29 USD 40,000 $ 55,950
# Lexington Realty Trust 144A
          6.00% exercise price $7.09,
          expiration date 1/15/30 50,000 51,810
107,760
Retail – 0.19%
Pantry 3.00%
          exercise price $50.09,
          expiration date 11/15/12 65,000 59,475
59,475
Telecommunications – 1.51%
Alaska Communications System
          Group 5.75% exercise price
            $12.90, expiration date 3/1/13 105,000 98,962
* Leap Wireless International
          4.50% exercise price $93.21,
          expiration date 7/15/14 76,000 64,125
Level 3 Communications 5.25%
          exercise price $3.98,
          expiration date 12/15/11 100,000 96,500
NII Holdings 3.125%
          exercise price $118.32,
          expiration date 6/15/12 155,000 143,374
SBA Communications 4.00%
          exercise price $30.38,
          expiration date 10/1/14 65,000 82,144
485,105
Transportation – 0.28%
Bristow Group 3.00%
          exercise price $77.34,
          expiration date 6/15/38 106,000 89,173
89,173
Utilities – 0.39%
Dominion Resources 2.125%
          exercise price $35.44,
          expiration date 12/15/23 110,000 124,163
124,163
Total Convertible Bonds
(cost $3,343,313) 3,470,403
 
Corporate Bonds – 40.06%
Banking – 1.07%
Capital One Capital V
          10.25% 8/15/39 50,000 54,063
GMAC 8.00% 12/31/18 45,000 42,750
# HBOS Capital Funding 144A
          6.071% 6/29/49 55,000 39,600
JPMorgan Chase Capital XXV
          6.80% 10/1/37 197,000 191,109
Zions Bancorporation
          5.50% 11/16/15 15,000 13,515
341,037
Basic Industry – 3.04%
* AK Steel 7.625% 5/15/20   35,000   34,738
# Algoma Acquisition 144A
          9.875% 6/15/15 45,000 42,075
*# Appleton Papers 144A
          10.50% 6/15/15 35,000 32,025
ArcelorMittal 9.85% 6/1/19 72,000 88,024
Century Aluminum 8.00% 5/15/14 35,300 34,285
# Drummond 144A 9.00% 10/15/14 40,000 40,000
# Essar Steel Algoma 144A
          9.375% 3/15/15 5,000 5,150
# FMG Finance 144A
          10.625% 9/1/16 75,000 82,875
Freeport McMoRan Copper & Gold
          8.375% 4/1/17 20,000 21,778
* Hexion US Finance 9.75% 11/15/14 57,000 54,720
International Coal Group
          9.125% 4/1/18 40,000 40,200
# MacDermid 144A 9.50% 4/15/17 103,000 103,773
Millar Western Forest Products
          7.75% 11/15/13 20,000 17,700
# Murray Energy 144A
          10.25% 10/15/15 40,000 40,000
* Nalco 8.875% 11/15/13 50,000 51,125
NewPage
          11.375% 12/31/14 5,000 4,700
          #144A 11.375% 12/31/14 35,000 32,900
Noranda Aluminum Acquisition PIK
          5.373% 5/15/15 43,874 35,867
Novelis
          7.25% 2/15/15 20,000 18,846
          11.50% 2/15/15 15,000 16,350
@= Port Townsend 7.32% 8/27/12 29,312 21,251
Ryerson
          7.719% 11/1/14 25,000 23,406
          12.00% 11/1/15 35,000 35,788
*# Steel Dynamics 144A
          7.625% 3/15/20 30,000 29,850
Teck Resources
          10.25% 5/15/16 15,000 17,645
          10.75% 5/15/19 15,000 18,102
* Verso Paper Holdings
          11.375% 8/1/16 35,000 30,538
973,711
Brokerage – 0.37%
* E Trade Financial PIK
          12.50% 11/30/17 71,000 79,165
# Pension Worldwide 144A
          12.50% 5/15/17 40,000   39,850
  119,015
Capital Goods – 1.65%  
AMH Holdings 11.25% 3/1/14 40,000   40,000
# Associated Materials 144A
          9.875% 11/15/16 5,000 5,400
# DAE Aviation Holdings 144A
          11.25% 8/1/15 35,000 35,263

6
 


          Principal Value
Amount° (U.S. $)
Corporate Bonds (continued)          
Capital Goods (continued)
# Express 144A 8.75% 3/1/18 USD 25,000 $ 25,313
* Graham Packaging Capital I
          9.875% 10/15/14 40,000 40,500
Intertape Polymer 8.50% 8/1/14 26,000 21,320
*Manitowoc 9.50% 2/15/18 40,000 39,500
#Plastipak Holdings 144A
          10.625% 8/15/19 10,000 10,950
# Ply Gem Industries 144A
          13.125% 7/15/14 45,000 45,675
Pregis 13.375% 10/15/13 83,000 82,169
* RBS Global/Rexnord  
          11.75% 8/1/16 45,000 47,250
Solo Cup 8.50% 2/15/14 20,000 18,550
# Susser Holdings & Finance 144A
          8.50% 5/15/16 35,000 34,738
Thermadyne Holdings
          11.50% 2/1/14 40,000 41,250
# Trimas 144A 9.75% 12/15/17 30,000 30,600
# USG 144A 9.75% 8/1/14 10,000 10,525
529,003
Consumer Cyclical – 2.54%  
# Allison Transmission 144A
          11.00% 11/1/15 45,000 47,250
American Axle & Manufacturing  
          7.875% 3/1/17 55,000 48,950
Ames True Temper 10.00% 7/15/12   25,000 24,250
ArvinMeritor  
          8.125% 9/15/15   35,000 32,638
          *10.625% 3/15/18 30,000 30,900
Beazer Homes USA
          8.125% 6/15/16 30,000 27,600
          9.125% 6/15/18 15,000 14,175
Burlington Coat Factory
          Investment Holdings
          14.50% 10/15/14 75,000 79,124
* Ford Motor 7.45% 7/16/31 65,000 58,175
Ford Motor Credit 12.00% 5/15/15 50,000 58,304
# Games Merger 144A
          11.00% 6/1/18 35,000 34,650
General Motors 7.20% 1/15/11 70,000 22,050
Goodyear Tire & Rubber
          10.50% 5/15/16 10,000 10,650
Interface
          9.50% 2/1/14 4,000 4,110
          #144A 11.375% 11/1/13 10,000 11,225
K Hovnanian Enterprises
          6.25% 1/15/15 35,000 27,650
          7.50% 5/15/16 15,000 11,325
# Landry’s Restaurants 144A
          11.625% 12/1/15 60,000 62,849
M/I Homes 6.875% 4/1/12 20,000 19,550
Macy’s Retail Holdings
          10.625% 11/1/10 10,000 10,475
# Norcraft Finance 144A
          10.50% 12/15/15 30,000 31,650
* Norcraft Holdings Capital
          9.75% 9/1/12   14,000   12,828
* OSI Restaurant Partners
          10.00% 6/15/15 42,000 41,370
* Rite Aid 9.375% 12/15/15 25,000 20,688
# Sealy Mattress 144A
          10.875% 4/15/16 10,000 11,000
Standard Pacific
          8.375% 5/15/18 25,000 24,063
          10.75% 9/15/16 15,000 16,350
Tenneco Automotive
          8.625% 11/15/14 20,000 19,900
813,749
Consumer Non-Cyclical – 1.89%
Accellent 10.50% 12/1/13 30,000 29,100
# Alliance One International 144A
          10.00% 7/15/16 30,000 30,750
Bausch & Lomb 9.875% 11/1/15 40,000 41,000
# BioScrip 144A 10.25% 10/1/15 40,000 39,200
# Cott Beverages 144A
          8.375% 11/15/17 25,000 25,313
Dean Foods 7.00% 6/1/16 25,000 23,094
DJO Finance 11.75% 11/15/14 40,000 41,099
Inverness Medical Innovations
          9.00% 5/15/16 25,000 24,688
JBS USA 11.625% 5/1/14 20,000 22,062
# JohnsonDiversey Holdings 144A
          10.50% 5/15/20 88,000 95,039
LVB Acquisition 11.625% 10/15/17 35,000 37,538
# Mylan 144A 7.875% 7/15/20 20,000 20,125
# Quintiles Transnational PIK 144A
          9.50% 12/30/14 20,000 20,000
Smithfield Foods 7.75% 7/1/17 20,000 18,900
# Tops Markets 144A
          10.125% 10/15/15 30,000 31,125
Universal Hospital Services PIK
          8.50% 6/1/15 20,000 19,300
# Viskase 144A 9.875% 1/15/18 45,000 45,675
* Yankee Acquisition 9.75% 2/15/17 40,000 40,500
604,508
Energy – 3.16%
# American Petroleum Tankers 144A
          10.25% 5/1/15 20,000 19,900
AmeriGas Partners 7.125% 5/20/16 7,000 7,000
# Antero Resources Finance 144A
          9.375% 12/1/17 30,000 29,550
# Aquilex Holdings 144A
          11.125% 12/15/16 30,000 30,150
Chesapeake Energy 9.50% 2/15/15 30,000 32,625
Complete Production Services
          8.00% 12/15/16 25,000 24,750
Copano Energy Finance
          7.75% 6/1/18 30,000 28,650
*# Crosstex Energy/Finance 144A
          8.875% 2/15/18 30,000 29,700

(continues)     7
 


Statement of net assets
 
Delaware Investments® Global Dividend and Income Fund, Inc.
 
Principal Value
          Amount°      (U.S. $)
Corporate Bonds (continued)     
Energy (continued)
Dynegy Holdings 7.75% 6/1/19 USD 35,000 $ 25,463
El Paso
          6.875% 6/15/14 21,000 21,160
          7.00% 6/15/17 5,000 4,909
# El Paso Performance-Linked Trust
          144A 7.75% 7/15/11 46,000 47,761
Enterprise Products Operating
          9.75% 1/31/14 50,000 60,384
# Global Geophysical Services 144A
          10.50% 5/1/17 20,000 19,300
Headwaters 11.375% 11/1/14 40,000 40,500
# Helix Energy Solutions Group 144A
            9.50% 1/15/16 55,000 54,175
#* Hercules Offshore 144A
          10.50% 10/15/17 40,000 37,400
# Hilcorp Energy I 144A  
          8.00% 2/15/20 45,000 43,875
# Holly 144A 9.875% 6/15/17 35,000 35,525
Inergy Finance 8.25% 3/1/16 20,000 20,300
* Key Energy Services
          8.375% 12/1/14 40,000 40,000
# Linn Energy 144A 8.625% 4/15/20 40,000 39,800
#* NFR Energy/Finance 144A
          9.75% 2/15/17 40,000 37,600
OPTI Canada
          7.875% 12/15/14 30,000 25,650
          8.25% 12/15/14 58,000 49,880
PetroHawk Energy 7.875% 6/1/15 40,000 38,950
Petroleum Development
          12.00% 2/15/18 40,000 41,400
# Pioneer Drilling 144A
          9.875% 3/15/18 20,000 19,900
Quicksilver Resources
          7.125% 4/1/16 55,000 49,913
# SandRidge Energy 144A
        *8.75% 1/15/20 30,000 27,300
          9.875% 5/15/16 30,000 29,700
    1,013,170
Finance & Investments – 12.21%
American International Group
          8.175% 5/15/58 70,000 55,125
Cardtronics
          9.25% 8/15/13 37,000 37,185
City National Capital Trust I
          9.625% 2/1/40 40,000 40,840
General Electric Capital
          2.48% 2/2/11 NOK  1,000,000 152,437
General Electric Capital Australia
          Funding 4.77% 7/12/13 AUD  2,000,000 1,611,684
General Electric Capital European
          Funding 5.25% 5/18/15 EUR 1,200,000 1,593,303
@ General Electric Capital UK
          Funding 4.625% 1/18/16 GBP 114,000 169,101
Genworth Financial
          6.15% 11/15/66 USD 77,000 54,093
#International Lease
          Finance Company 144A
          8.75% 3/15/17   20,000 18,350
#Liberty Mutual Group 144A
          7.00% 3/15/37 50,000 38,886
Nuveen Investments
          10.50% 11/15/15 132,000 119,460
XL Capital 6.50% 3/29/49 25,000 17,750
3,908,214
Media – 5.02%
Affinion Group I 11.50% 10/15/15 15,000 15,563
Cablevision Systems
          8.00% 4/15/20 5,000 4,950
          #144A 8.625% 9/15/17 10,000 10,100
*#CCO Holdings 144A
          7.875% 4/30/18 10,000 9,863
          8.125% 4/30/20 10,000 9,950
# Cequel Communications
          Holdings Capital I 144A
          8.625% 11/15/17 20,000 19,400
# Charter Communications
          Operating 144A
          10.875% 9/15/14 20,000 21,950
* Clear Channel Communications
          10.75% 8/1/16 40,000 29,800
DISH DBS 7.875% 9/1/19 40,000 40,600
# Gray Television 144A
          10.50% 6/29/15 40,000 38,000
# GXS Worldwide 144A
          9.75% 6/15/15 40,000 37,700
# MDC Partners 144A
          11.00% 11/1/16 20,000 21,500
#* Nexstar Broadcasting 144A
          8.875% 4/15/17 40,000 39,800
Nielsen Finance
          10.00% 8/1/14 30,000 30,638
          11.50% 5/1/16 10,000 10,650
          11.625% 2/1/14 5,000 5,375
          Ω12.50% 8/1/16 35,000 32,550
Shaw Communications
          6.75% 11/9/39 CAD   1,000,000 957,618
# Sinclair Television Group 144A
          9.25% 11/1/17 USD 30,000 29,850
# Sitel 144A 11.50% 4/1/18 40,000 38,200
# Terremark Worldwide 144A
          12.25% 6/15/17 35,000 39,900
*# Umbrella Acquisition PIK 144A
          9.75% 3/15/15 26,313 22,465
# Univision Communications 144A
          12.00% 7/1/14 25,000 27,000
Videotron 9.125% 4/15/18 15,000 16,125
# XM Satellite Radio 144A
          13.00% 8/1/13 90,000 98,999
1,608,546

8
 


Principal Value
          Amount°      (U.S. $)
Corporate Bonds (continued)
Real Estate – 0.13%
* Felcor Lodging 10.00% 10/1/14 USD      40,000 $ 40,200
40,200
Services Cyclical – 2.81%
ARAMARK 8.50% 2/1/15 23,000 23,058
# Avis Budget Car Rental 144A
          9.625% 3/15/18 40,000 40,200
# Delta Air Lines 144A
          11.75% 3/15/15 35,000 36,488
# Equinox Holdings 144A
          9.50% 2/1/16 40,000 39,400
FTI Consulting 7.625% 6/15/13   5,000 4,950
# General Maritime 144A
          12.00% 11/15/17 40,000 41,200
Global Cash Access 8.75% 3/15/12 9,000   9,000
Harrah’s Operating
          *10.00% 12/15/18 80,000 63,600
          11.25% 6/1/17 60,000 63,150
*# Kansas City Southern de Mexico
          144A 8.00% 2/1/18   40,000 40,150
*# MCE Finance 144A
          10.25% 5/15/18 50,000 50,000
* MGM MIRAGE
          13.00% 11/15/13 25,000 28,625
          #144A 11.375% 3/1/18 110,000 102,300
* Mohegan Tribal Gaming Authority
          6.875% 2/15/15 10,000 7,325
          7.125% 8/15/14 25,000 18,625
# NCL 144A 11.75% 11/15/16 40,000 43,000
@‡ Northwest Airlines 10.00% 2/1/11 15,000 56
#* Peninsula Gaming 144A
          10.75% 8/15/17 45,000 44,550
# Pinnacle Entertainment 144A
          8.75% 5/15/20 25,000 23,250
@# Pokagon Gaming Authority 144A
          10.375% 6/15/14 15,000 15,600
Royal Caribbean Cruises
          6.875% 12/1/13 20,000 19,750
* RSC Equipment Rental
          9.50% 12/1/14 20,000 19,100
          #144A 10.25% 11/15/19 20,000 19,300
# ServiceMaster PIK 144A
          10.75% 7/15/15 50,000 50,250
# Shingle Springs Tribal Gaming
          Authority 144A
          9.375% 6/15/15 45,000 35,325
# United Air Lines 144A
          12.00% 11/1/13 60,000 61,650
899,902
Services Non-Cyclical – 1.14%
# Alion Science & Technology PIK
          144A 12.00% 11/1/14 30,065 30,064
Allied Waste North America
          7.125% 5/15/16 10,000 10,751
Casella Waste Systems
          9.75% 2/1/13 48,000 47,280
          #144A 11.00% 7/15/14 10,000 10,550
Community Health Systems
          8.875% 7/15/15 15,000 15,394
* HCA PIK 9.625% 11/15/16 78,000 82,290
* Iron Mountain 8.00% 6/15/20 30,000 29,925
# Radiation Therapy Services 144A
          9.875% 4/15/17 40,000 39,000
# Radnet Management 144A
          10.375% 4/1/18 40,000 36,780
Select Medical 7.625% 2/1/15 25,000 23,625
US Oncology Holdings PIK
          6.643% 3/15/12 42,000 38,745
364,404
Technology & Electronics – 0.83%
Anixter 10.00% 3/15/14 15,000 16,463
# Aspect Software 144A
          10.625% 5/15/17 40,000 39,850
* First Data 9.875% 9/24/15 90,000 73,799
# International Wire Group 144A
          9.75% 4/15/15 35,000 34,869
# Magnachip Semiconductor 144A
          10.50% 4/15/18 30,000 30,938
Sanmina-SCI 8.125% 3/1/16 36,000 34,470
* SunGard Data Systems
          10.25% 8/15/15 35,000 35,569
265,958
Telecommunications – 3.25%
# Clearwire Communications 144A
          12.00% 12/1/15 80,000 78,200
Cricket Communications
          10.00% 7/15/15 40,000 41,200
*# GCI 144A 8.625% 11/15/19 30,000 29,250
# Global Crossing 144A
          12.00% 9/15/15 55,000 60,225
Intelsat Bermuda
          11.25% 2/4/17 95,000 94,050
          PIK 11.50% 2/4/17 42,500 41,969
# Level 3 Financing 144A
          10.00% 2/1/18 45,000 39,825
* MetroPCS Wireless 9.25% 11/1/14 32,000 33,120
NII Capital 10.00% 8/15/16 30,000 32,250
* PAETEC Holding
          8.875% 6/30/17 15,000 14,888
          9.50% 7/15/15 20,000 19,550
# Primus Telecommunications
          Holding 144A
          13.00% 12/15/16 23,000 23,115
# Qwest 144A 8.375% 5/1/16 20,000 21,800
Qwest Communications
          International 7.50% 2/15/14 15,000 14,850
Sprint Capital 8.75% 3/15/32 65,000 62,238
# Telcordia Technologies 144A
          11.00% 5/1/18 40,000 38,950

(continues)     9
 


Statement of net assets
 
Delaware Investments® Global Dividend and Income Fund, Inc.
 
          Principal Value
Amount°      (U.S. $)
Corporate Bonds (continued)     
Telecommunications (continued)
Telecom Italia Capital
          5.25% 10/1/15 USD 98,000 $ 98,032
Telesat Canada
          11.00% 11/1/15 20,000 21,800
          12.50% 11/1/17 50,000 56,750
ViaSat 8.875% 9/15/16 20,000 20,300
Virgin Media 6.50% 11/15/16 85,000 96,687
* West 11.00% 10/15/16 40,000 40,600
# Wind Acquisition Finance 144A
          11.75% 7/15/17 50,000 51,250
Windstream 7.875% 11/1/17 10,000 9,475
  1,040,374
Utilities – 0.95%
AES
          8.00% 6/1/20 25,000 24,375
         *#144A 8.75% 5/15/13 3,000 3,060
* Edison Mission 7.00% 5/15/17 20,000 13,625
Elwood Energy 8.159% 7/5/26 80,176 76,368
* Energy Future Holdings
          10.875% 11/1/17 15,000 11,100
* Mirant Americas Generation
          8.50% 10/1/21 100,000 91,999
NRG Energy 7.375% 2/1/16 21,000 20,370
Puget Sound Energy Z
          6.974% 6/1/67 25,000 22,922
* Texas Competitive Electric Holdings
          10.25% 11/1/15 30,000 20,250
TXU 5.55% 11/15/14 30,000 21,203
  305,272
Total Corporate Bonds
(cost $13,118,283) 12,827,063
 
« Senior Secured Loans – 0.50%
BWAY Holding Bridge Tranche
          Term Loan 9.50% 12/30/11 85,000 85,000
Chester Downs & Marina Tranche
          Term Loan 12.375% 12/31/16 14,438 14,438
PQ Tranche Term Loan
          6.73% 7/30/15 45,000 41,175
Texas Competitive Electric Holdings
          Tranche Term Loan B2
          3.729% 10/10/14 24,608 18,999
Total Senior Secured Loans
(cost $155,008) 159,612
 
Sovereign Debt – 0.53%Δ
Canada – 0.02%
Quebec Province 4.50% 12/1/19 CAD 7,000 6,812
  6,812
Republic of Korea – 0.51%  
Republic of Korea 4.25% 12/7/21 EUR 140,000 164,271
  164,271
Total Sovereign Debt (cost $191,949) 171,083
 
Supranational Banks – 5.58%
European Bank for Reconstruction
            & Development 9.25% 9/10/12 BRL    220,000      120,796
European Investment Bank
          6.125% 1/23/17 AUD 73,000 62,012
International Bank for
          Reconstruction & Development
          5.375% 12/15/14 NZD 597,000 408,614
          5.75% 10/21/19 AUD   1,443,000 1,196,173
Total Supranational Banks
(cost $1,837,140) 1,787,595
 
U.S. Treasury Obligation – 0.43%
U.S. Treasury Bond
          4.625% 2/15/40 USD 130,000 138,836
Total U.S. Treasury Obligation
(cost $142,256) 138,836
 
  Number of
  Shares
Limited Partnership – 0.08%
Brookfield Infrastructure Partners 1,600 25,088
Total Limited Partnership
(cost $30,407) 25,088
 
Preferred Stock – 0.01%
†= Port Townsend 20 0
W2007 Grace Acquisitions 8.75% 10,000 3,000
Total Preferred Stock
(cost $269,800) 3,000
 
Rights – 0.06%
± National Grid 8,915 17,687
Total Rights (cost $0) 17,687
 
Warrant – 0.00%
†= Port Townsend 20 0
Total Warrant (cost $480) 0
 
Total Value of Securities Before
Securities Lending Collateral – 126.75%
(cost $42,887,667) 40,587,896
 
Securities Lending Collateral** – 11.77%
Investment Companies
          Mellon GSL DBT II
          Collateral Fund 3,440,692 3,440,692
          BNY Mellon SL DBT II
          Liquidating Fund 328,035 324,164
     @†Mellon GSL
          Reinvestment Trust II 78,121 3,320
Total Securities Lending Collateral
(cost $3,846,848) 3,768,176

10
 


 
Total Value of Securities – 138.52%
          (cost $46,734,515) $ 44,356,072 ©
Obligation to Return Securities
          Lending Collateral** – (12.01%) (3,846,848 )
Borrowing Under Line of Credit – (33.49%) (10,725,000 )
Receivables and Other Assets
          Net of Liabilities – 6.98% 2,236,880  
Net Assets Applicable to 4,931,031
          Shares Outstanding; Equivalent to
          $6.49 Per Share – 100.00% $ 32,021,104
 
Components of Net Assets at May 31, 2010:
Common stock, $0.01 par value,
          500,000,000 shares authorized to the Fund $ 44,671,910
Distributions in excess of net investment income (10,613 )
Accumulated net realized loss on investments (10,026,755 )
Net unrealized depreciation of investments
          and foreign currencies (2,613,438 )
Total net assets $ 32,021,104

°Principal amount 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
JPY — Japanese Yen
KRW — South Korean Won
NOK — Norwegian Kroner
NZD — New Zealand Dollar
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 2.
±
Security is being valued based on international fair value pricing. At May 31, 2010, the aggregate amount of international fair value priced securities was $8,145,076, which represented 25.44% of the Fund’s net assets. See Note 1 in ”Notes to financial statements.”
=
Security is being fair valued in accordance with the Fund’s fair valuation policy. At May 31, 2010, the aggregate amount of fair valued securities was $21,252, which represented 0.07% of the Fund’s net assets. See Note 1 in “Notes to financial statements.”
Non income producing security.
Variable rate security. The rate shown is the rate as of May 31, 2010. Interest rates reset periodically.
Φ
Step coupon bond. Coupon increases or decreases periodically based on a predetermined schedule. Stated rate in effect at May 31, 2010.
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.
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 May 31, 2010, the aggregate amount of the restricted securities was $17,751, which represented 0.06% of the Fund’s net assets. See Note 10 in “Notes to financial statements.”
@
Illiquid security. At May 31, 2010, the aggregate amount of illiquid securities was $211,593, which represented 0.66% of the Fund’s net assets. See Note 10 in “Notes to financial statements.”
#
Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At May 31, 2010, the aggregate amount of Rule 144A securities was $4,532,929, which represented 14.16% of the Fund’s net assets. See Note 10 in “Notes to financial statements.”
«
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 May 31, 2010.
Δ
Securities have been classified by country of origin.
*
Fully or partially on loan.
**
See Note 9 in “Notes to financial statements.”
©
Includes $3,748,307 of securities loaned.
 
Summary of Abbreviations:
ADR American Depositary Receipts
FDR
Fiduciary Depositary Receipts
PIK
Pay-in-kind
REIT
Real Estate Investment Trust
 
1The following foreign currency exchange contracts were outstanding at May 31, 2010:
 
Foreign Currency Exchange Contracts
 
Unrealized
Contracts to Settlement Appreciation
Receive (Deliver)                In Exchange For                Date                (Depreciation)
AUD (2,212,998 ) USD 1,836,678 7/1/10 $ (28,997 )
CAD (4,865 ) USD 4,591 6/1/10 (31 )
CAD 1,520,698 USD (1,428,019 ) 6/30/10 16,574
EUR (303,933 ) USD 373,655 7/1/10 554
EUR (1,500,000 ) USD 1,841,888 7/1/10 525
GBP (60,392 ) USD 87,013   6/2/10 (284 )
GBP (974,651 ) USD 1,402,630 7/1/10   (6,318 )
JPY (9,112,806 ) USD 100,185 6/1/10 (44 )
KRW   34,074,000 USD (27,651 ) 7/1/10 841
NOK 11,943,000 USD   (1,829,167 ) 7/1/10 8,589
NOK (9,884,845 ) USD 1,514,107 7/1/10 (6,946 )
$ (15,537 )

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
 
11
 


Statement of operations
 
Delaware Investments® Global Dividend and Income Fund, Inc.
Six Months Ended May 31, 2010 (Unaudited)
 
Investment Income:      
       Dividends $ 422,741
       Interest 677,539
       Securities lending income 9,035
       Foreign tax withheld (19,340 ) $ 1,089,975
 
 
Expenses:
       Management fees 157,926
       Reports to shareholders 30,064
       Dividend disbursing and transfer agent fees 18,405
       Pricing fees 12,534
       NYSE fees 11,875
       Legal fees 9,089
       Accounting and administration expenses 9,002
       Leverage expenses 7,758
       Custodian fees 7,752
       Audit and tax 6,805
       Dues and services 3,801
       Directors’ fees   999
       Insurance fees 626
       Registration fees 231
       Consulting fees 174
       Directors’ expenses 93
       Total operating expenses (before interest expense) 277,134
       Interest expense   74,855
       Total operating expenses (after interest expense) 351,989  
Net Investment Income 737,986
 
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currencies:
       Net realized gain (loss) on:
              Investments 984,870
              Foreign currencies (257,875 )
       Net realized gain 726,995
       Net change in unrealized appreciation/depreciation of investments and foreign currencies (2,504,569 )
Net Realized and Unrealized Loss on Investments and Foreign Currencies (1,777,574 )
 
Net Decrease in Net Assets Resulting from Operations $ (1,039,588 )

See accompanying notes
 
12
 


Statements of changes in net assets
 
Delaware Investments® Global Dividend and Income Fund, Inc.
 
Six Months Year
Ended       Ended
5/31/10 11/30/09
(Unaudited)
Increase (Decrease) in Net Assets from Operations:
       Net investment income $ 737,986 $ 1,260,114
       Net realized gain (loss) on investments and foreign currencies 726,995 (3,376,313 )
       Net change in unrealized appreciation/depreciation of investments and foreign currencies (2,504,569 ) 14,225,371
       Net increase (decrease) in net assets resulting from operations (1,039,588 ) 12,109,172
 
Dividends and Distributions to Shareholders from:1
       Net investment income (1,701,205 ) (1,978,297 )
       Tax return of capital (1,645,361 )
  (1,701,205 ) (3,623,658 )
 
Capital Share Transactions:2
       Cost of shares repurchased (1,531,217 )
       Decrease in net assets derived from capital stock transactions (1,531,217 )
 
Net Increase (Decrease) in Net Assets   (2,740,793 ) 6,954,297
 
Net Assets:
       Beginning of period 34,761,897 27,807,600
       End of period (including distributions in excess of net investment income of $10,613
              and $53,998, respectively) $ 32,021,104   $ 34,761,897

1See Note 4 in “Notes to financial statements.”
2See Note 6 in “Notes to financial statements.”
 
See accompanying notes
 
13
 


Statement of cash flows
 
Delaware Investments® Global Dividend and Income Fund, Inc.
Six Months Ended May 31, 2010 (Unaudited)
 
Net Cash (Including Foreign Currency) Provided by Operating Activities:
Net decrease in net assets resulting from operations $ (1,039,588 )
 
       Adjustments to reconcile net decrease in net assets from operations to cash provided by operating activities:
              Amortization of premium and discount on investments purchased (35,498 )
              Purchase of investment securities (12,264,603 )
              Proceeds from disposition of investment securities 12,704,214
              Proceeds from disposition of short-term investment securities, net 1,541,891
              Net realized gain on investment transactions (945,671 )
              Net change in unrealized appreciation/depreciation of investments and foreign currencies 2,504,569
              Increase in receivable for investments sold (284,993 )
              Decrease in interest and dividends receivable 48,665
              Decrease in payable for investments purchased (225,341 )
              Increase in interest payable 12,362
              Decrease in accrued expenses and other liabilities (29,468 )
       Total adjustments 3,026,127
Net cash provided by operating activities 1,986,539
 
Cash Flows Used for Financing Activities:
       Cash dividends and distributions paid (1,701,205 )
Net cash used for financing activities (1,701,205 )
Effect of exchange rates on cash (322,796 )
Net decrease in cash (37,462 )
Cash at beginning of period   1,914,065
Cash at end of period $ 1,876,603
 
Interest paid for borrowings during the period $ 62,493

See accompanying notes
 
14
 


Financial highlights
 
Delaware Investments® Global Dividend and Income Fund, Inc.
 
 
 
Selected data for each share of the Fund outstanding throughout each period were as follows:
 
Six Months
Ended Year Ended
5/31/101      11/30/09      11/30/08      11/30/07      11/30/06      11/30/05
(Unaudited)
Net asset value, beginning of period   $ 7.050 $ 5.360 $11.590 $13.290 $13.190 $13.590
 
Income (loss) from investment operations:
Net investment income2 0.150 0.248 0.365 0.269 0.273 0.384
Net realized and unrealized gain (loss)
       on investments and foreign currencies   (0.365 ) 2.155 (5.635 ) 0.192 2.437 0.176
Total from investment operations (0.215 ) 2.403 (5.270 ) 0.461 2.710 0.560
 
Less dividends and distributions from:
Net investment income (0.345 ) (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 (0.345 ) (0.713 ) (0.960 ) (2.161 ) (2.610 ) (0.960 )
 
Net asset value, end of period $ 6.490 $ 7.050 $ 5.360 $11.590 $13.290 $13.190
 
Market value, end of period $ 6.540 $ 6.600 $ 4.240 $10.550 $13.800 $13.400  
 
Total return based on:3
Market value 3.98% 77.48% (54.54% ) (8.46% ) 24.39% 17.22%
Net asset value (3.40% ) 49.69% (47.68% ) 4.43% 21.61% 4.43%
 
Ratios and supplemental data:
Net assets, end of period (000 omitted) $32,021 $34,762 $27,808 $63,330 $72,590 $72,082
Ratio of expenses to average net assets 2.04% 2.46% 2.90% 3.13% 3.24% 2.59%
Ratio of expenses to adjusted average net assets
       (before interest expense)4 1.22% 1.47% 1.23% 0.98% 1.01% 1.13%
Ratio of interest expense to adjusted average net assets4 0.33% 0.34% 0.79% 1.40% 1.40% 0.87%
Ratio of net investment income to average net assets 4.27% 4.17% 3.90% 2.01% 2.21% 2.84%
Ratio of net investment income to adjusted average net assets4 3.26% 3.08% 2.71% 1.52% 1.65% 2.19%
Portfolio turnover 57% 89% 60% 46% 76% 121%
 
Leverage Analysis:
Debt outstanding at end of period at par (000 omitted) $10,725 $10,725 $10,725 $23,000 $23,000 $23,000
Asset coverage per $1,000 of debt outstanding at end of period $3,986 $4,241 $3,593 $3,753 $4,156 $4,134
 

1 Ratios and portfolio turnover have been annualized and total return has not been annualized.
2 The average shares outstanding method has been applied for per share information.
3Total 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.
4 Adjusted average net assets excludes debt outstanding.
 
See accompanying notes
 
15
 


Notes to financial statements
 
Delaware Investments® Global Dividend and Income Fund, Inc.
May 31, 2010 (Unaudited)
 
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 (U.S. 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. Short-term debt securities are valued at market value. 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. Generally, 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 (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 implemented a managed distribution policy. Under the policy, the Fund is managed with a goal of generating as much of the distribution as possible from net investment income and short-term capital gains. The balance of the distribution will then come from long-term capital gains to the extent permitted, and if necessary, a return of capital. Even though the Fund may realize current year capital gains, such gains may be offset, in whole or in part, by the Fund’s capital loss carryovers from prior years. For federal income tax purposes, the effect of such capital loss carryovers may be to convert (to the extent of such current year gains) what would otherwise be returns of capital into distributions taxable as ordinary income. This tax effect can occur during times of extended market volatility. The actual determination of the source of the Fund’s distributions can be made only at year-end. Shareholders should receive written notification regarding the actual components and tax treatments of all Fund distributions for the calendar year 2010 in early 2011.
 
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 May 31, 2010, 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.
 
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. Taxable non-cash dividends are recorded as dividend income. Discounts and premiums on non-convertible bonds are amortized
 
16
 


to interest income over the lives of the respective securities. Distributions received from investments in Real Estate Investment Trusts (REITs) are recorded as dividend income on the ex-dividend date as an estimate, subject to reclassification upon notice of the character of such distribution by the issuer. Foreign dividends are also recorded on the ex-dividend date or as soon after the ex-dividend date that the Fund is aware of such dividends, net of all non-rebatable tax withholdings. Withholding taxes on foreign dividends have been provided for in accordance with the Fund’s understanding of the applicable country’s tax rules and rates.
 
Subject to seeking best execution, the Fund may direct certain security trades to brokers who have agreed to rebate a portion of the related brokerage commission to the Fund in cash. Such commission rebates are included in realized gain on investments in the accompanying financial statements and totaled $267 for the six months ended May 31, 2010. In general, best execution refers to many factors, including the price paid or received for a security, the commission charged, the promptness and reliability of execution, the confidentiality and placement accorded the order, and other factors affecting the overall benefit obtained by the Fund on the transaction. DMC, as defined below, and its affiliates have previously and may in the future act as an investment advisor to mutual funds or separate accounts affiliated with the administrator of the commission recapture program described above. In addition, affiliates of the administrator act as consultants in helping institutional clients choose investment advisors and may also participate in other types of 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 six months ended May 31, 2010.
 
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 six months ended May 31, 2010, the Fund was charged $1,132 for these services.
 
At May 31, 2010, the Fund had liabilities payable to affiliates as follows:
 
Investment management fee payable to DMC $26,125
Fees and other expenses payable to DSC 187
Other expenses payable to DMC and affiliates* 4,427

*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 six months ended May 31, 2010, the Fund was charged $333 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.
 
3. Investments
 
For the six moths ended May 31, 2010, the Fund made purchases of $12,028,680 and sales of $12,467,980 of investment securities other than U.S. government securities and short-term investments. For the six months ended May 31, 2010, the Fund made purchases of $129,423 and sales of $132,195 of long-term U.S. government securities.
 
At May 31, 2010, the cost of investments for federal income tax purposes has been estimated since final tax characteristics cannot be determined until fiscal year end. At May 31, 2010, the cost of investments was $47,092,588. At May 31, 2010, the net unrealized depreciation was $2,736,516, of which $2,266,350 related to unrealized appreciation of investments and $5,002,866 related to unrealized depreciation of investments.
 
U.S. GAAP 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. A three level hierarchy for fair value measurements has been established 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 level 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
 
(continues)     17
 


Notes to financial statements
 
Delaware Investments® Global Dividend and Income Fund, Inc.
 
 
3. Investments (continued)
 
The following table summarizes the valuation of the Fund’s investments by fair value hierarchy levels as of May 31, 2010:
 
  Level 1       Level 2       Level 3       Total
Common Stock $ 13,285,317 $ 8,127,388 $ 1 $ 21,412,706
Corporate Debt 62,022 16,896,818 73,061 17,031,901
Foreign Debt 1,837,882 120,796 1,958,678
U.S. Treasury
       Obligations 138,836 138,836
Securities
       Lending
       Collateral 3,440,692 324,164 3,320 3,768,176
Other 25,088 17,687 3,000 45,775
Total $ 16,951,955 $ 27,203,939 $ 200,178 $ 44,356,072
 
Foreign
       Currency
       Exchange
       Contracts $ $ (15,537 ) $ $ (15,537 )

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 Collateral Other Total
Balance as of                    
       11/30/09 $ 1 $ 21,251 $ 372,581 $ 3,320 $ 6,000 $ 403,153
Purchases 50,000 119,016 169,016
Sales (118,485 ) (118,485 )
Net realized loss (237 ) (237 )
Transfers out of
       Level 3 (217,820 ) (217,820 )
Net change in
       unrealized
       appreciation/
       depreciation 1,810 (34,259 ) (3,000 ) (35,449 )
Balance as of
       5/31/10 $ 1 $ 73,061 $ 120,796 $ 3,320 $ 3,000 $ 200,178
 
Net change
       in unrealized
       appreciation/
       depreciation
       from
       investments
       still held as of
       5/31/10 $ $ 1,810 $ (5,880 ) $  — $ (3,000 ) $ (7,070 )

In January 2010, the Financial Accounting Standards Board issued an Accounting Standards Update, Improving Disclosures about Fair Value Measurements, which introduces new disclosure requirements and clarifies certain existing disclosure requirements around fair value measurements currently presented above. The new disclosures and clarifications of existing disclosures are generally effective for the Fund’s year ending November 30, 2011 and interim periods therein. Management is evaluating the impact of this update on its current disclosures.
 
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 six months ended May 31, 2010 and the year ended November 30, 2009 was as follows:
 
Six Months       Year
Ended Ended
5/31/10* 11/30/09
Ordinary income $ 1,701,205 $ 1,978,297
Return of capital 1,645,361
Total $ 1,701,205 $ 3,623,658

*Tax information for the period ended May 31, 2010 is an estimate and the tax character of dividends and distributions may be redesignated at fiscal year end.
 
5. Components of Net Assets on a Tax Basis
 
The components of net assets are estimated since final tax characteristics cannot be determined until fiscal year end. As of May 31, 2010, the estimated components of net assets on a tax basis were as follows:
 
Shares of beneficial interest $ 44,671,910  
Capital loss carryforwards as of 11/30/09 (10,572,364 )
Realized gains 12/1/09 – 5/31/10 903,682
Other temporary differences (26,075 )
Unrealized depreciation of investments
       and foreign currencies (2,956,049 )
Net assets $ 32,021,104

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 foreign currency contracts, partnership income, 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 and market discount and premium on certain debt instruments. Results of operations and net assets were not affected by these reclassifications. For the six months ended May 31, 2010, the Fund recorded an estimate of these differences since final tax characteristics cannot be determined until fiscal year end.
 
Distributions in excess of net investment income $ 1,006,604  
Accumulated net realized gain 243,966
Paid-in capital (1,250,570 )

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.
 
For the six months ended May 31, 2010, the Fund had capital gains of $903,682, which may reduce the capital loss carryforwards.
 
18
 


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 six months ended May 31, 2010 and year ended November 30, 2009.
 
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 ration approximately 0.578412712) in accordance with the terms of the tender offer.
 
The Fund did not repurchase shares under the Share Repurchase Program during the six months ended May 31, 2010 and year ended November 30, 2009.
 
7. Line of Credit
 
For the six months ended May 31, 2010, the Fund borrowed money pursuant to a $17,000,000 Credit Agreement with BNY Mellon that expires on November 29, 2010. 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 May 31, 2010, the par value of loans outstanding was $10,725,000 at a variable interest rate of 1.44%. During the six months ended May 31, 2010, the average daily balance of loans outstanding was $10,725,000 at a weighted average interest rate of approximately 1.40%. 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
 
U.S. GAAP requires 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.
 
Foreign Currency Exchange Contracts — The Fund enters into foreign currency exchange contracts as a way of managing foreign exchange rate risk. The Fund may enter into these contracts to fix the U.S. dollar value of a security that it has agreed to buy or sell for the period between the date the trade was entered into and the date the security is delivered and paid for. The Fund may also use these contracts to hedge the U.S. dollar value of securities it already owns that are denominated in foreign currencies. 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 objective. 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.
 
(continues)     19
 


Notes to financial statements
 
Delaware Investments® Global Dividend and Income Fund, Inc.
 
 
8. Derivatives (continued)
 
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 reference security (or basket of securities) to the counterparty. Credit events generally include, among others, bankruptcy, failure to pay, and obligation default.
 
During the six months ended May 31, 2010, 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.
 
Credit default swaps may involve greater risks than if the Fund had invested in the reference obligation 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. There were no swap contracts outstanding at May 31, 2010.
 
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 BNY Mellon Securities Lending Overnight 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 only hold cash and high quality assets with a maturity of one business day or less (Cash/Overnight Assets). The Fund also has cash collateral invested in the BNY Mellon SL DBT II Liquidating Fund (Liquidating Fund), which generally holds the portfolio securities of the Fund’s previous cash collateral pool other than its Cash/Overnight Assets. The Liquidating Fund invests in fixed income securities, with a weighted average maturity not to exceed 90 days, rated in one of the top three tiers by Standard & Poor’s Ratings Group (S&P) or Moody’s Investors Service, Inc. (Moody’s) or repurchase agreements collateralized by such securities. The Fund will not make additional investments of cash collateral in the Liquidating Fund; the Fund’s exposure to the Liquidating Fund is expected to decrease as the Liquidating Fund’s assets mature or are sold. Both the Collective Trust and the Liquidating Fund seek to maintain a net asset value per unit of $1.00, but there can be no assurance that they will always be able to do so. The Fund may incur investment losses as a result of investing securities lending collateral in the Collective Trust and the Liquidating Fund. This could occur if an investment in the Collective Trust or the Liquidating Fund defaulted or if it were necessary to liquidate assets in the Collective Trust or the Liquidating Fund to meet returns on outstanding security loans at a time when their net asset value per unit was less than $1.00. Under those circumstances, the Fund may not receive an amount from the Collective Trust or the Liquidating Fund 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. 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 May 31, 2010, the value of securities on loan was $3,748,307, for which the Fund received collateral, comprised of non-cash collateral valued at $70,319 and cash collateral of $3,846,848. At May 31, 2010, the value of invested collateral was $3,768,176. Investments purchased with cash collateral are presented on the statement of net assets under the caption “Securities Lending Collateral”.
 
20
 


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 value of equity securities listed on the major securities exchanges in emerging markets are held by a smaller number of investors. This may limit the number of shares available for acquisition or disposition by the Fund.
 
The Fund invests in 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 six months ended May 31, 2010. 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 invests 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 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 (former 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 management agreement between DMC and the Fund. On January 4, 2010, the new investment management agreement between DMC and the Fund that was approved by the shareholders became effective.
 
13. Subsequent Event
 
Management has determined no material events or transactions occurred subsequent to May 31, 2010 that would require recognition or disclosure in the Fund’s financial statements.
 
21
 


Other Fund information
(Unaudited)
 
Delaware Investments® Global Dividend and Income Fund, Inc.
 
Changes to Portfolio Management Team
 
Wayne A. Anglace was appointed co-portfolio manager of the Fund on March 30, 2010. Mr. Anglace joined Babak Zenouzi, Damon J. Andres, D. Tysen Nutt Jr., Anthony A. Lombardi, Robert Vogel Jr., Nikhil G. Lalvani, Nashira S. Wynn, Kristen F. Bartholdson, Thomas H. Chow, Roger A. Early, Edward A. Gray, Todd A. Bassion, and Kevin P. Loome in making day-to-day decisions for the Fund.
 
Fund management
 
Babak “Bob” Zenouzi
Senior Vice President, Chief Investment Officer – REIT Equity
 
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.
 
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.
 
Wayne A. Anglace, CFA
Vice President, Portfolio Manager, Research Analyst, Convertible Bond Trader
 
Wayne A. Anglace currently serves as a portfolio manager and trader for the firm’s convertible bond strategies. He also serves as a research analyst on the firm’s taxable fixed income team with specific responsibilities for the healthcare and deathcare sectors. Prior to joining the firm in March 2007 as a research analyst and trader, he spent more than two years as a research analyst at Gartmore Global Investments for its convertible bond strategy. From 2000 to 2004, Anglace worked in private client research at Deutsche Bank Alex. Brown in Baltimore where he focused on equity research, and he started his financial services career with Ashbridge Investment Management in 1999. Prior to moving to the financial industry, Anglace worked as a professional civil engineer. He earned his bachelor’s degree in civil engineering from Villanova University and an MBA with a concentration in finance from Saint Joseph’s University, and he is a member of the CFA Society of Philadelphia.
 
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.
 
22
 


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.
 
Edward A. “Ned” Gray, CFA
Senior Vice President, Chief Investment Officer – International Value Equity
 
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.
 
(continues)       23
 


Other Fund information
(Unaudited)
 
Delaware Investments® Global Dividend and Income Fund, Inc.
 
Fund management (continued)
 
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 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.
 
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.
 
24
 


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.
 
Change in Independent Registered Public Accounting Firm
 
Due to independence matters under the Securities and Exchange Commission’s auditor independence rules relating to the January 4, 2010 acquisition of Delaware Investments (including DMC and DSC) by Macquarie Group, Ernst & Young LLP (“E&Y”) has resigned as the independent registered public accounting firm for Delaware Investments® Global Dividend and Income Fund, Inc. (the “Fund”) effective May 20, 2010. At a meeting held on May 20, 2010, the Board of Trustees of the Fund, upon recommendation of the Audit Committee, selected PricewaterhouseCoopers LLC (“PwC”) to serve as the independent registered public accounting firm for the Fund for the fiscal year ending November 30, 2010. During the fiscal years ended November 30, 2009 and 2008, E&Y’s audit reports on the financial statements of the Fund did not contain any adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope, or accounting principles. In addition, there were no disagreements between the Fund and E&Y on accounting principles, financial statements disclosures or audit scope, which, if not resolved to the satisfaction of E&Y, would have caused them to make reference to the disagreement in their reports. Neither the Fund nor anyone on its behalf has consulted with PwC at any time prior to their selection with respect to the application of accounting principles to a specified transaction, either completed or proposed or the type of audit opinion that might be rendered on the Fund’s financial statements.
 
25
 


About the organization
 
This semiannual report is for the information of Delaware Investments® Global Dividend and Income Fund, Inc. shareholders. The figures in this report represent past results that are not a guarantee of future results. The return and principal value of an investment in the Fund will fluctuate so that shares, when sold, may be worth more or less than their original cost.
 
Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940 that the Fund may, from time to time, purchase shares of its common stock on the open market at market prices. 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
Affiliated officers
Contact information
 
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
President-Elect
Drexel University
Philadelphia, 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
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 (SEC) 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 www.delawareinvestments.com; and (iii) on the SEC’s Web site at www.sec.gov. The Fund’s Forms N-Q may be reviewed and copied at the SEC’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 www.delawareinvestments.com; and (ii) on the SEC’s Web site at www.sec.gov.
 
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
PricewaterhouseCoopers LLP
Two Commerce Square
Suite 1700
2001 Market Street
Philadelphia, PA 19103-7042
 
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, a member of Macquarie Group, refers to Delaware Management Holdings, Inc. and its subsidiaries. Macquarie Group refers to Macquarie Group Limited and its subsidiaries and affiliates worldwide.
 
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
 
26
 


Item 2. Code of Ethics
 
     Not applicable.
 
Item 3. Audit Committee Financial Expert
 
     Not applicable.
 
Item 4. Principal Accountant Fees and Services
 
     Not applicable.
 
Item 5. Audit Committee of Listed Registrants
 
     Not applicable.
 
Item 6. 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
 
     Not applicable.
 
Item 8. Portfolio Managers of Closed-End Management Investment Companies
 
     Applicable to Form N-CSRs filed after fiscal years ending on or after December 31, 2005.
 
     Not applicable.
 
Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers
 
     Not applicable.
 


Item 10. Submission of Matters to a Vote of Security Holders
 
     Not applicable.
 
Item 11. Controls and Procedures
 
     The registrant’s principal executive officer and principal financial officer have evaluated the registrant’s disclosure controls and procedures within 90 days of the filing of this report and have concluded that they are effective in providing reasonable assurance that the information required to be disclosed by the registrant in its reports or statements filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission.
 
     There were no significant changes in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by the report to stockholders included herein (i.e., the registrant’s second fiscal quarter) that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
 
Item 12. Exhibits
 
(a) (1) Code of Ethics
 
     Not applicable.
 
(2) Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Rule 30a-2 under the Investment Company Act of 1940 are attached hereto as Exhibit 99.CERT.
 
(3) Written solicitations to purchase securities pursuant to Rule 23c-1 under the Securities Exchange Act of 1934.
 
     Not applicable.
 
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are furnished herewith as Exhibit 99.906CERT.
 


SIGNATURES
 
     Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf, by the undersigned, thereunto duly authorized.
 
Name of Registrant: Delaware Investments® Global Dividend and Income Fund, Inc.
 
PATRICK P. COYNE
By:  Patrick P. Coyne
Title:  Chief Executive Officer
Date:  July 30, 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:  July 30, 2010

RICHARD SALUS
By:  Richard Salus
Title:  Chief Financial Officer
Date:  July 30, 2010