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: | 811-22050 | |
Exact name of registrant as specified in charter: | Delaware Enhanced Global Dividend and Income Fund | |
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 | ||
Registrants telephone number, including area code: | (800) 523-1918 | |
Date of fiscal year end: | November 30 | |
Date of reporting period: | May 31, 2013 |
Item 1. Reports to Stockholders
Semiannual report |
Delaware
Enhanced Global Dividend and Income Fund |
May 31, 2013 | |
The figures in
the semiannual report for Delaware Enhanced Global Dividend and Income
Fund 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 |
Security type/sector and country allocations | 1 | |
Statement of net assets | 3 | |
Statement of operations | 17 | |
Statements of changes in net assets | 18 | |
Statement of cash flows | 19 | |
Financial highlights | 20 | |
Notes to financial statements | 21 | |
Other Fund information | 30 | |
About the organization | 33 |
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.
© 2013 Delaware Management Holdings, Inc.
All third-party marks cited are the property of their respective owners.
Security type/sector and country allocations
Delaware Enhanced Global Dividend and
Income Fund
As of May 31, 2013
(Unaudited)
Sector designations may be different than the sector designations presented in other Fund materials. The sector designations may represent the investment managers internal sector classifications, which may result in the sector designations for one fund being different than another funds sector designations.
Percentage | ||
Security type/sector | of net assets | |
Common Stock | 60.98 | % |
Consumer Discretionary | 7.71 | % |
Consumer Staples | 5.77 | % |
Diversified REITs | 0.82 | % |
Energy | 5.84 | % |
Financials | 6.64 | % |
Healthcare | 7.95 | % |
Healthcare REITs | 0.27 | % |
Hotel REITs | 0.54 | % |
Industrial REITs | 1.08 | % |
Industrials | 6.15 | % |
Information Technology | 5.34 | % |
Mall REITs | 0.88 | % |
Manufactured Housing REITs | 0.25 | % |
Materials | 3.99 | % |
Mixed REITs | 0.23 | % |
Mortgage REITs | 0.28 | % |
Multifamily REITs | 0.47 | % |
Office REITs | 0.71 | % |
Real Estate Management & Development | 0.02 | % |
Self-Storage REITs | 0.18 | % |
Shopping Center REITs | 0.92 | % |
Single Tenant REIT | 0.18 | % |
Specialty REITs | 0.74 | % |
Telecommunications | 2.90 | % |
Utilities | 1.12 | % |
Convertible Preferred Stock | 2.41 | % |
Exchange-Traded Fund | 0.23 | % |
Agency Collateralized Mortgage Obligations | 0.09 | % |
Agency Mortgage-Backed Securities | 0.70 | % |
Commercial Mortgage-Backed Securities | 0.11 | % |
Convertible Bonds | 13.11 | % |
Automotive | 0.68 | % |
Basic Industry | 0.35 | % |
Capital Goods | 1.45 | % |
Communications | 1.70 | % |
Consumer Cyclical | 1.65 | % |
Consumer Non-Cyclical | 2.27 | % |
Energy | 0.61 | % |
Financials | 0.78 | % |
Industrials | 0.19 | % |
Insurance | 0.22 | % |
Real Estate Investment Trust | 0.32 | % |
Technology | 2.89 | % |
Corporate Bonds | 40.20 | % |
Automotive | 0.92 | % |
Banking | 1.11 | % |
Basic Industry | 4.56 | % |
Brokerage | 0.03 | % |
Capital Goods | 2.84 | % |
Communications | 3.54 | % |
Consumer Cyclical | 2.84 | % |
Consumer Non-Cyclical | 1.53 | % |
Energy | 6.97 | % |
Financials | 0.83 | % |
Healthcare | 2.45 | % |
Industrials | 0.02 | % |
Insurance | 1.68 | % |
Media | 3.20 | % |
Natural Gas | 0.13 | % |
Real Estate Investment Trusts | 0.08 | % |
Services | 4.16 | % |
Technology | 2.24 | % |
Transportation | 0.04 | % |
Utilities | 1.03 | % |
Non-Agency Asset-Backed Security | 0.01 | % |
Non-Agency Collateralized Mortgage Obligations | 0.11 | % |
Senior Secured Loans | 0.74 | % |
Sovereign Bonds | 4.14 | % |
U.S. Treasury Obligations | 0.46 | % |
Leveraged Non-Recourse Security | 0.00 | % |
Limited Partnerships | 0.36 | % |
Preferred Stock | 0.79 | % |
Short-Term Investments | 6.44 | % |
Securities Lending Collateral | 7.02 | % |
Total Value of Securities | 137.90 | % |
Obligation to Return Securities Lending Collateral | (7.15 | %) |
Borrowing Under Line of Credit | (31.86 | %) |
Receivables and Other Assets Net of Other Liabilities | 1.11 | % |
Total Net Assets | 100.00 | % |
(continues) 1
Security type/sector and country allocations
Delaware Enhanced Global Dividend and Income Fund
Percentage | ||
*Country | of net assets | |
Australia | 0.76 | % |
Austria | 0.41 | % |
Barbados | 0.15 | % |
Bermuda | 0.53 | % |
Brazil | 2.79 | % |
Canada | 4.00 | % |
Cayman Islands | 0.84 | % |
China/Hong Kong | 1.95 | % |
Denmark | 0.77 | % |
France | 8.49 | % |
Germany | 2.80 | % |
Indonesia | 0.78 | % |
Ireland | 0.96 | % |
Israel | 1.06 | % |
Italy | 1.02 | % |
Japan | 7.27 | % |
Jersey | 0.38 | % |
Luxembourg | 2.40 | % |
Marshall Island | 0.19 | % |
Mexico | 0.89 | % |
Multinational | 0.08 | % |
Netherlands | 1.82 | % |
Norway | 0.00 | % |
Panama | 0.60 | % |
Poland | 0.32 | % |
Republic of Korea | 0.38 | % |
Russia | 0.64 | % |
Singapore | 0.06 | % |
Spain | 0.16 | % |
Sweden | 1.66 | % |
Switzerland | 3.05 | % |
Turkey | 0.14 | % |
United Kingdom | 5.93 | % |
United States | 71.16 | % |
Total | 124.44 | % |
* Allocation includes all investments except for short-term investments and securities lending collateral.
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 5 in Notes to financial statements. The Fund utilizes leveraging techniques in an attempt to obtain a higher return for the Fund. There is no assurance that the Fund will achieve its investment objectives through the use of such techniques.
2
Statement of net assets
Delaware Enhanced Global Dividend and
Income Fund
May 31, 2013
(Unaudited)
Number of | Value | ||||
Shares | (U.S. $) | ||||
vCommon Stock 60.98% | |||||
Consumer Discretionary 7.71% | |||||
Bayerische Motoren Werke | 13,931 | $ | 1,322,029 | ||
Carnival | 43,200 | 1,429,920 | |||
| DIRECTV Class A | 2,250 | 137,543 | ||
Don Quijote | 20,800 | 937,754 | |||
Genuine Parts | 8,900 | 691,886 | |||
Hyundai Home Shopping Network | 5,582 | 784,124 | |||
Kering | 5,219 | 1,134,124 | |||
L Brands | 4,124 | 206,241 | |||
Mattel | 16,100 | 720,475 | |||
Nitori Holdings | 17,554 | 1,381,872 | |||
Publicis Groupe | 22,134 | 1,583,696 | |||
Techtronic Industries | 305,500 | 783,732 | |||
Toyota Motor | 51,505 | 3,006,995 | |||
| United Rentals | 3,729 | 211,956 | ||
Yue Yuen Industrial Holdings | 539,000 | 1,570,501 | |||
15,902,848 | |||||
Consumer Staples 5.77% | |||||
Archer-Daniels-Midland | 15,500 | 499,565 | |||
| Aryzta | 49,227 | 2,824,750 | ||
Carlsberg Class B | 16,790 | 1,594,549 | |||
ConAgra Foods | 30,500 | 1,027,545 | |||
Greggs | 38,196 | 236,326 | |||
Kimberly-Clark | 10,500 | 1,016,715 | |||
Kraft Foods Group | 19,500 | 1,075,035 | |||
Lorillard | 24,800 | 1,052,512 | |||
* | Safeway | 32,100 | 738,621 | ||
TESCO | 330,677 | 1,831,148 | |||
11,896,766 | |||||
Diversified REITs 0.82% | |||||
Champion REIT | 125,000 | 59,066 | |||
Fibra Uno Administracion | 87,563 | 303,964 | |||
Investors Real Estate Trust | 10,260 | 92,340 | |||
Lexington Realty Trust | 52,975 | 666,955 | |||
Mapletree Logistics Trust | 70,996 | 67,897 | |||
* | Nieuwe Steen Investments | 89 | 625 | ||
Orix JREIT | 40 | 43,077 | |||
Stockland | 70,059 | 243,101 | |||
Vornado Realty Trust | 2,641 | 211,148 | |||
1,688,173 | |||||
Energy 5.84% | |||||
Chevron | 5,700 | 699,675 | |||
CNOOC | 824,000 | 1,443,413 | |||
ConocoPhillips | 11,700 | 717,678 | |||
Occidental Petroleum | 6,100 | 561,627 | |||
Royal Dutch Shell ADR | 15,600 | 1,073,748 | |||
Saipem | 26,977 | 719,383 | |||
Spectra Energy | 23,700 | 724,509 | |||
* | Subsea 7 | 61,141 | 1,346,755 | ||
Total | 40,273 | 2,012,980 | |||
Total ADR | 21,800 | 1,086,730 | |||
Transocean | 23,100 | 1,160,313 | |||
Williams | 14,400 | 506,592 | |||
12,053,403 | |||||
Financials 6.64% | |||||
Aspen Insurance Holdings | 3,522 | 129,386 | |||
* | AXA | 101,928 | 2,057,897 | ||
BB&T | 33,700 | 1,109,404 | |||
Fifth Street Finance | 16,638 | 174,699 | |||
Gallagher (Arthur J.) | 24,100 | 1,052,688 | |||
Home Loan Servicing Solutions | 32,995 | 753,606 | |||
Marsh & McLennan | 18,400 | 736,368 | |||
Mitsubishi UFJ Financial Group | 406,128 | 2,357,909 | |||
Nordea Bank | 153,298 | 1,883,419 | |||
Nordea Bank FDR | 38,212 | 470,163 | |||
Solar Capital | 8,309 | 191,107 | |||
Standard Chartered | 59,846 | 1,385,745 | |||
UniCredit | 248,430 | 1,394,236 | |||
13,696,627 | |||||
Healthcare 7.95% | |||||
AbbVie | 15,500 | 661,695 | |||
| Alliance HealthCare Services | 1,689 | 27,379 | ||
AstraZeneca ADR | 14,700 | 753,375 | |||
Baxter International | 7,300 | 513,409 | |||
Bristol-Myers Squibb | 19,000 | 874,190 | |||
Cardinal Health | 10,900 | 511,864 | |||
Johnson & Johnson | 10,400 | 875,472 | |||
* | Meda Class A | 51,214 | 658,125 | ||
Merck | 29,800 | 1,391,660 | |||
Novartis | 32,073 | 2,298,055 | |||
Pfizer | 40,960 | 1,115,341 | |||
Sanofi | 24,139 | 2,573,898 | |||
Stada Arzneimittel | 44,913 | 1,964,113 | |||
Teva Pharmaceutical Industries ADR | 57,100 | 2,181,220 | |||
16,399,796 | |||||
Healthcare REITs 0.27% | |||||
HCP | 1,100 | 52,118 | |||
Health Care REIT | 1,875 | 127,556 | |||
Ventas | 5,342 | 381,259 | |||
560,933 | |||||
Hotel REITs 0.54% | |||||
Ashford Hospitality Trust | 61,800 | 816,378 | |||
DiamondRock Hospitality | 17,600 | 167,376 | |||
LaSalle Hotel Properties | 1,200 | 31,680 | |||
Summit Hotel Properties | 9,300 | 91,791 | |||
1,107,225 | |||||
Industrial REITs 1.08% | |||||
DCT Industrial Trust | 16,877 | 124,552 | |||
First Industrial Realty Trust | 63,827 | 1,078,038 | |||
Goodman Group | 49,447 | 241,466 | |||
ProLogis | 385 | 15,516 | |||
STAG Industrial | 35,063 | 771,386 | |||
2,230,958 | |||||
Industrials 6.15% | |||||
* | Alstom | 30,096 | 1,132,731 | ||
| Delta Air Lines | 6 | 108 | ||
Deutsche Post | 68,399 | 1,723,646 | |||
East Japan Railway | 23,261 | 1,723,176 |
(continues) 3
Statement of net assets
Delaware Enhanced Global Dividend and Income Fund
Number of | Value | ||||
Shares | (U.S. $) | ||||
vCommon Stock (continued) | |||||
Industrials (continued) | |||||
| Flextronics International | 7,400 | $ | 55,204 | |
ITOCHU | 156,202 | 1,936,522 | |||
Koninklijke Philips Electronics | 53,706 | 1,520,741 | |||
Northrop Grumman | 8,900 | 733,271 | |||
Raytheon | 16,400 | 1,092,896 | |||
Vinci | 32,945 | 1,689,580 | |||
Waste Management | 25,900 | 1,085,987 | |||
12,693,862 | |||||
Information Technology 5.34% | |||||
Applied Materials | 62,300 | 946,960 | |||
* | Canon ADR | 19,700 | 675,316 | ||
* | CGI Group Class A | 105,751 | 3,238,494 | ||
Cisco Systems | 37,700 | 907,816 | |||
Intel | 53,200 | 1,291,696 | |||
Microsoft | 23,600 | 823,168 | |||
Teleperformance | 47,893 | 2,254,206 | |||
Xerox | 100,000 | 879,000 | |||
11,016,656 | |||||
Mall REITs 0.88% | |||||
CBL & Associates Properties | 8,968 | 206,174 | |||
General Growth Properties | 12,497 | 256,563 | |||
Macerich | 389 | 25,250 | |||
Pennsylvania Real Estate | |||||
Investment Trust | 8,500 | 169,065 | |||
* | Rouse Properties | 748 | 15,042 | ||
Simon Property Group | 6,908 | 1,149,769 | |||
1,821,863 | |||||
Manufactured Housing REITs 0.25% | |||||
Equity Lifestyle Properties | 2,478 | 191,227 | |||
Sun Communities | 6,586 | 329,103 | |||
520,330 | |||||
Materials 3.99% | |||||
AuRico Gold | 125,665 | 638,964 | |||
Dow Chemical | 17,800 | 613,388 | |||
duPont (E.I.) deNemours | 11,900 | 663,901 | |||
Lafarge | 24,369 | 1,737,771 | |||
Rexam | 181,927 | 1,456,239 | |||
Rio Tinto | 35,909 | 1,533,751 | |||
Yamana Gold | 134,679 | 1,587,898 | |||
8,231,912 | |||||
Mixed REITs 0.23% | |||||
Duke Realty | 11,447 | 189,677 | |||
* | DuPont Fabros Technology | 2,500 | 60,575 | ||
Liberty Property Trust | 4,797 | 194,662 | |||
PS Business Parks | 400 | 30,524 | |||
475,438 | |||||
Mortgage REITs 0.28% | |||||
Chimera Investment | 17,000 | 51,850 | |||
Starwood Property Trust | 20,900 | 530,233 | |||
582,083 | |||||
Multifamily REITs 0.47% | |||||
Apartment Investment | |||||
& Management | 15,728 | 475,930 | |||
BRE Properties | 1,000 | 49,990 | |||
Camden Property Trust | 5,109 | 353,798 | |||
Equity Residential | 1,597 | 90,310 | |||
970,028 | |||||
Office REITs 0.71% | |||||
* | Alstria Office REIT | 33,657 | 406,966 | ||
Commonwealth Property | |||||
Office Fund | 105,000 | 110,321 | |||
Government Properties | |||||
Income Trust | 4,752 | 115,521 | |||
Link REIT | 33,000 | 170,196 | |||
Mack-Cali Realty | 11,500 | 304,750 | |||
Parkway Properties | 20,673 | 355,162 | |||
1,462,916 | |||||
Real Estate Management & Development 0.02% | |||||
Cyrela Brazil Realty | 4,100 | 32,549 | |||
32,549 | |||||
Self-Storage REITs 0.18% | |||||
Extra Space Storage | 4,555 | 190,809 | |||
Public Storage | 1,150 | 174,570 | |||
365,379 | |||||
Shopping Center REITs 0.92% | |||||
Agree Realty | 9,350 | 311,635 | |||
Charter Hall Retail REIT | 71,117 | 278,931 | |||
* | Corio | 2,685 | 119,673 | ||
Equity One | 1,500 | 34,995 | |||
First Capital Realty | 2,922 | 54,524 | |||
Kimco Realty | 12,857 | 284,783 | |||
Ramco-Gershenson | |||||
Properties Trust | 19,634 | 306,487 | |||
Regency Centers | 900 | 46,440 | |||
Unibail-Rodamco | 910 | 223,570 | |||
Westfield Group | 16,989 | 186,579 | |||
Westfield Retail Trust | 21,112 | 61,991 | |||
1,909,608 | |||||
Single Tenant REIT 0.18% | |||||
* | National Retail Properties | 10,537 | 377,962 | ||
377,962 | |||||
Specialty REITs 0.74% | |||||
EPR Properties | 8,736 | 457,941 | |||
Gladstone Land | 18,590 | 284,241 | |||
GLP J-REIT | 304 | 279,676 | |||
Nippon Prologis REIT | 50 | 402,333 | |||
Plum Creek Timber | 1,520 | 72,504 | |||
Rayonier | 450 | 24,930 | |||
1,521,625 | |||||
Telecommunications 2.90% | |||||
AT&T | 26,600 | 930,734 | |||
= | Century Communications | 125,000 | 0 | ||
CenturyLink | 5,543 | 189,293 | |||
France Telecom ADR | 900 | 9,090 |
4
Number of | Value | ||||||
Shares | (U.S. $) | ||||||
vCommon Stock (continued) | |||||||
Telecommunications (continued) | |||||||
KDDI | 33,370 | $ | 1,506,054 | ||||
Mobile TeleSystems ADR | 68,000 | 1,310,360 | |||||
NTT DOCOMO ADR | 51,600 | 757,488 | |||||
Verizon Communications | 14,100 | 683,568 | |||||
Vodafone Group | 203,080 | 588,568 | |||||
5,975,155 | |||||||
Utilities 1.12% | |||||||
American Water Works | 800 | 31,952 | |||||
Edison International | 11,200 | 514,528 | |||||
National Grid | 61,244 | 728,240 | |||||
* | National Grid ADR | 11,600 | 690,896 | ||||
NorthWestern | 3,800 | 156,408 | |||||
NRG Energy | 7,753 | 197,857 | |||||
2,319,881 | |||||||
Total Common Stock | |||||||
(cost $108,072,793) | 125,813,976 | ||||||
Convertible Preferred Stock 2.41% | |||||||
# | Chesapeake Energy 144A | ||||||
5.75% exercise price | |||||||
$27.83, expiration | |||||||
date 12/31/49 | 430 | 473,000 | |||||
El Paso Energy Capital | |||||||
Trust I 4.75% exercise | |||||||
price $34.49, expiration | |||||||
date 3/31/28 | 1,950 | 115,928 | |||||
HealthSouth 6.50% exercise | |||||||
price $30.50, expiration | |||||||
date 12/31/49 | 835 | 1,019,952 | |||||
Huntington Bancshares 8.50% | |||||||
exercise price $11.95, | |||||||
expiration date 12/31/49 | 510 | 675,755 | |||||
MetLife 5.00% exercise | |||||||
price $44.28, expiration | |||||||
date 9/4/13 | 13,000 | 691,730 | |||||
PPL 9.50% exercise price | |||||||
$28.80, expiration | |||||||
date 7/1/13 | 11,250 | 590,288 | |||||
SandRidge Energy | |||||||
7.00% exercise price $7.76, | |||||||
expiration date 12/31/49 | 3,600 | 318,825 | |||||
8.50% exercise price $8.01, | |||||||
expiration date 12/31/49 | 2,205 | 213,069 | |||||
Wells Fargo 7.50% exercise | |||||||
price $156.71, expiration | |||||||
date 12/31/49 | 695 | 872,225 | |||||
Total Convertible Preferred Stock | |||||||
(cost $4,434,574) | 4,970,772 | ||||||
Exchange-Traded Fund 0.23% | |||||||
* | iPATH S&P 500 VIX Short-Term | ||||||
Futures ETN | 25,000 | 479,500 | |||||
Total Exchange-Traded Fund | |||||||
(cost $1,178,000) | 479,500 | ||||||
Principal | |||||||
Amount° | |||||||
Agency Collateralized Mortgage Obligations 0.09% | |||||||
Fannie Mae REMICs | |||||||
Series 2001-50 BA | |||||||
7.00% 10/25/41 | USD | 91,130 | 105,990 | ||||
Series 2003-122 AJ | |||||||
4.50% 2/25/28 | 6,183 | 6,194 | |||||
Freddie Mac REMICs | |||||||
Series 2557 WE | |||||||
5.00% 1/15/18 | 42,898 | 45,714 | |||||
Series 3131 MC | |||||||
5.50% 4/15/33 | 10,164 | 10,242 | |||||
Series 3173 PE | |||||||
6.00% 4/15/35 | 28,657 | 29,521 | |||||
Total Agency Collateralized | |||||||
Mortgage Obligations | |||||||
(cost $180,868) | 197,661 | ||||||
Agency Mortgage-Backed Securities 0.70% | |||||||
| Fannie Mae ARM | ||||||
2.423% 3/1/38 | 12,153 | 12,902 | |||||
2.428% 4/1/36 | 36,885 | 39,522 | |||||
2.541% 4/1/36 | 9,461 | 10,058 | |||||
2.717% 10/1/36 | 5,965 | 6,387 | |||||
2.81% 11/1/35 | 9,076 | 9,697 | |||||
2.884% 10/1/36 | 9,802 | 10,451 | |||||
Fannie Mae S.F. 15 yr | |||||||
4.00% 11/1/25 | 114,976 | 123,926 | |||||
5.50% 1/1/23 | 20,300 | 22,101 | |||||
Fannie Mae S.F. 15 yr TBA | |||||||
2.50% 6/1/28 | 71,000 | 72,445 | |||||
2.50% 7/1/28 | 40,000 | 40,727 | |||||
3.00% 6/1/28 | 41,000 | 42,659 | |||||
3.00% 7/1/28 | 40,000 | 41,563 | |||||
Fannie Mae S.F. 20 yr 5.50% 12/1/29 | 1,453 | 1,577 | |||||
Fannie Mae S.F. 30 yr | |||||||
3.50% 3/1/43 | 1,994 | 2,069 | |||||
4.00% 11/1/40 | 2,138 | 2,255 | |||||
4.00% 9/1/41 | 1,473 | 1,555 | |||||
4.50% 7/1/36 | 1,722 | 1,841 | |||||
6.50% 6/1/36 | 16,789 | 18,979 | |||||
6.50% 10/1/36 | 11,976 | 13,448 | |||||
6.50% 12/1/37 | 17,533 | 19,774 | |||||
Freddie Mac 6.00% 1/1/17 | 3,939 | 4,014 | |||||
| Freddie Mac ARM | ||||||
2.76% 7/1/36 | 8,134 | 8,713 | |||||
5.775% 10/1/36 | 13,939 | 14,882 |
(continues) 5
Statement of net assets
Delaware Enhanced Global Dividend and Income Fund
Principal | Value | ||||||
Amount° | (U.S. $) | ||||||
Agency Mortgage-Backed Securities (continued) | |||||||
Freddie Mac S.F. 15 yr | |||||||
5.00% 6/1/18 | USD | 7,484 | $ | 7,925 | |||
5.00% 12/1/22 | 34,742 | 37,299 | |||||
Freddie Mac S.F. 30 yr | |||||||
5.00% 1/1/34 | 345,014 | 371,316 | |||||
7.00% 11/1/33 | 29,503 | 34,459 | |||||
9.00% 9/1/30 | 44,122 | 48,547 | |||||
GNMA I S.F. 30 yr | |||||||
7.50% 12/15/23 | 60,630 | 76,671 | |||||
7.50% 1/15/32 | 51,231 | 61,732 | |||||
9.50% 9/15/17 | 35,562 | 39,524 | |||||
12.00% 5/15/15 | 14,784 | 15,713 | |||||
GNMA II S.F. 30 yr | |||||||
6.00% 11/20/28 | 56,648 | 62,887 | |||||
6.50% 2/20/30 | 141,170 | 157,939 | |||||
Total Agency Mortgage-Backed | |||||||
Securities (cost $1,328,071) | 1,435,557 | ||||||
Commercial Mortgage-Backed Securities 0.11% | |||||||
| Bear Stearns Commercial | ||||||
Mortgage Securities Series | |||||||
2006-PW12 A4 | |||||||
5.716% 9/11/38 | 25,000 | 27,844 | |||||
t | COMM Mortgage Trust | ||||||
Certificates Series 2005-C6 | |||||||
A5A 5.116% 6/10/44 | 10,000 | 10,780 | |||||
GS Mortgage Securities II | |||||||
Series 2004-GG2 A6 | |||||||
5.396% 8/10/38 | 60,000 | 61,961 | |||||
Series 2005-GG4 A4A | |||||||
4.751% 7/10/39 | 30,000 | 31,669 | |||||
Series 2006-GG6 A4 | |||||||
5.553% 4/10/38 | 10,000 | 10,994 | |||||
| JPMorgan Chase Commercial | ||||||
Mortgage Securities | |||||||
Series 2005-LDP3 A4A | |||||||
4.936% 8/15/42 | 35,000 | 37,500 | |||||
| Morgan Stanley Capital I | ||||||
Trust Series 2007-T27 A4 | |||||||
5.647% 6/11/42 | 25,000 | 28,742 | |||||
WF-RBS Commercial Mortgage | |||||||
Trust Series 2013-C11 A5 | |||||||
3.071% 3/15/45 | 10,000 | 9,927 | |||||
Total Commercial Mortgage- | |||||||
Backed Securities | |||||||
(cost $183,476) | 219,417 | ||||||
Convertible Bonds 13.11% | |||||||
Automotive 0.68% | |||||||
ϕ | ArvinMeritor 4.00% | ||||||
exercise price $26.73, | |||||||
expiration date 2/12/27 | 1,493,000 | 1,398,753 | |||||
1,398,753 | |||||||
Basic Industry 0.35% | |||||||
* | Peabody Energy 4.75% | ||||||
exercise price $57.95, | |||||||
expiration date 12/15/41 | 391,000 | 338,459 | |||||
Steel Dynamics 5.125% | |||||||
exercise price $17.25, | |||||||
expiration date 6/15/14 | 341,000 | 377,232 | |||||
715,691 | |||||||
Capital Goods 1.45% | |||||||
L-3 Communications | |||||||
Holdings 3.00% | |||||||
exercise price $90.24, | |||||||
expiration date 8/1/35 | 769,000 | 790,148 | |||||
# | Owens-Brockway Glass | ||||||
Container 144A 3.00% | |||||||
exercise price $47.47, | |||||||
expiration date 5/28/15 | 1,245,000 | 1,277,681 | |||||
Titan Machinery 3.75% | |||||||
exercise price $43.17, | |||||||
expiration date 4/30/19 | 947,000 | 929,244 | |||||
2,997,073 | |||||||
Communications 1.70% | |||||||
# | Alaska Communications | ||||||
Systems Group | |||||||
144A 6.25% | |||||||
exercise price $10.28, | |||||||
expiration date 4/27/18 | 597,000 | 477,227 | |||||
# | Blucora 144A 4.25% | ||||||
exercise price $21.66, | |||||||
expiration date 3/29/19 | 317,000 | 358,804 | |||||
# | Clearwire Communications | ||||||
144A 8.25% | |||||||
exercise price $7.08, | |||||||
expiration date 11/30/40 | 568,000 | 632,965 | |||||
Leap Wireless International 4.50% | |||||||
exercise price $93.21, | |||||||
expiration date 7/10/14 | 826,000 | 843,553 | |||||
Rovi 2.625% | |||||||
exercise price $47.36, | |||||||
expiration date 2/10/40 | 497,000 | 515,016 | |||||
SBA Communications 4.00% | |||||||
exercise price $30.38, | |||||||
expiration date 9/29/14 | 274,000 | 684,315 | |||||
3,511,880 | |||||||
Consumer Cyclical 1.65% | |||||||
Iconix Brand Group 2.50% | |||||||
exercise price $30.75, | |||||||
expiration date 5/31/16 | 634,000 | 742,573 | |||||
International Game | |||||||
Technology 3.25% | |||||||
exercise price $19.93, | |||||||
expiration date 5/1/14 | 493,000 | 540,143 |
6
Principal | Value | ||||||
Amount° | (U.S. $) | ||||||
Convertible Bonds (continued) | |||||||
Consumer Cyclical (continued) | |||||||
Live Nation Entertainment | |||||||
2.875% exercise price | |||||||
$27.14, expiration | |||||||
date 7/14/27 | USD | 1,232,000 | $ | 1,242,780 | |||
MGM Resorts International | |||||||
4.25% exercise price | |||||||
$18.58, expiration | |||||||
date 4/10/15 | 768,000 | 875,040 | |||||
3,400,536 | |||||||
Consumer Non-Cyclical 2.27% | |||||||
Alere 3.00% | |||||||
exercise price $43.98, | |||||||
expiration date 5/15/16 | 705,000 | 708,525 | |||||
Dendreon 2.875% | |||||||
exercise price $51.24, | |||||||
expiration date 1/13/16 | 586,000 | 440,965 | |||||
*Φ | Hologic 2.00% | ||||||
exercise price $31.17, | |||||||
expiration date 2/27/42 | 597,000 | 617,895 | |||||
# | Illumina 144A 0.25% | ||||||
exercise price $83.55, | |||||||
expiration date 3/11/16 | 297,000 | 318,718 | |||||
LifePoint Hospitals 3.50% | |||||||
exercise price $51.79, | |||||||
expiration date 5/14/14 | 870,000 | 958,631 | |||||
Mylan 3.75% | |||||||
exercise price $13.32, | |||||||
expiration date 9/15/15 | 188,000 | 438,275 | |||||
NuVasive 2.75% | |||||||
exercise price $42.13, | |||||||
expiration date 6/30/17 | 1,077,000 | 1,058,825 | |||||
# | Opko Health 144A 3.00% | ||||||
exercise price $7.07, | |||||||
expiration date 1/28/33 | 143,000 | 139,336 | |||||
4,681,170 | |||||||
Energy 0.61% | |||||||
* | Chesapeake Energy 2.50% | ||||||
exercise price $50.90, | |||||||
expiration date 5/15/37 | 349,000 | 350,527 | |||||
Helix Energy Solutions | |||||||
Group 3.25% | |||||||
exercise price $25.02, | |||||||
expiration date 3/12/32 | 697,000 | 903,486 | |||||
1,254,013 | |||||||
Financials 0.78% | |||||||
Ares Capital 5.75% | |||||||
exercise price $19.13, | |||||||
expiration date 2/1/16 | 561,000 | 618,503 | |||||
BGC Partners 4.50% | |||||||
exercise price $9.84, | |||||||
expiration date 7/13/16 | 365,000 | 379,600 | |||||
PHH 4.00% | |||||||
exercise price $25.81, | |||||||
expiration date 8/27/14 | 573,000 | 620,272 | |||||
1,618,375 | |||||||
Industrials 0.19% | |||||||
Φ | General Cable 4.50% | ||||||
exercise price $36.75, | |||||||
expiration date 11/15/29 | 310,000 | 385,563 | |||||
385,563 | |||||||
Insurance 0.22% | |||||||
# | WellPoint 144A 2.75% | ||||||
exercise price $75.47, | |||||||
expiration date 10/15/42 | 374,000 | 458,618 | |||||
458,618 | |||||||
Real Estate Investment Trust 0.32% | |||||||
# | Lexington Realty Trust 144A | ||||||
6.00% exercise price $6.93, | |||||||
expiration date 1/11/30 | 358,000 | 665,209 | |||||
665,209 | |||||||
Technology 2.89% | |||||||
Advanced Micro Devices | |||||||
6.00% exercise price $28.08, | |||||||
expiration date 4/30/15 | 898,000 | 926,062 | |||||
#144A 6.00% exercise price | |||||||
$28.08, expiration date | |||||||
4/30/15 | 31,000 | 31,969 | |||||
# | Ciena 144A 3.75% | ||||||
exercise price $20.17, | |||||||
expiration date 10/15/18 | 535,000 | 636,316 | |||||
Intel 3.25% | |||||||
exercise price $21.94, | |||||||
expiration date 8/1/39 | 501,000 | 654,747 | |||||
Linear Technology 3.00% | |||||||
exercise price $41.46, | |||||||
expiration date 4/30/27 | 541,000 | 576,503 | |||||
Nuance Communications 2.75% | |||||||
exercise price $32.30, | |||||||
expiration date 11/1/31 | 766,000 | 797,597 | |||||
SanDisk 1.50% exercise price | |||||||
$52.37, expiration date 8/11/17 | 529,000 | 704,562 | |||||
TIBCO Software 2.25% | |||||||
exercise price $50.57, | |||||||
expiration date 4/30/32 | 1,004,000 | 993,332 | |||||
VeriSign 3.25% | |||||||
exercise price $34.37, | |||||||
expiration date 8/15/37 | 424,000 | 633,350 | |||||
5,954,438 | |||||||
Total Convertible Bonds | |||||||
(cost $23,995,804) | 27,041,319 | ||||||
Corporate Bonds 40.20% | |||||||
Automotive 0.92% | |||||||
American Axle & Manufacturing | |||||||
7.75% 11/15/19 | 55,000 | 62,975 | |||||
Chrysler Group 8.25% 6/15/21 | 515,000 | 584,525 | |||||
Dana Holding 6.75% 2/15/21 | 119,000 | 128,520 | |||||
# | International Automotive | ||||||
Components Group 144A | |||||||
9.125% 6/1/18 | 445,000 | 442,219 |
(continues) 7
Statement of net assets
Delaware Enhanced Global Dividend and Income Fund
Principal | Value | ||||||
Amount° | (U.S. $) | ||||||
Corporate Bonds (continued) | |||||||
Automotive (continued) | |||||||
# | Jaguar Land Rover | ||||||
Automotive 144A | |||||||
5.625% 2/1/23 | USD | 200,000 | $ | 205,500 | |||
8.125% 5/15/21 | 260,000 | 294,450 | |||||
Meritor 6.75% 6/15/21 | 190,000 | 188,575 | |||||
1,906,764 | |||||||
Banking 1.11% | |||||||
Bank of America | |||||||
2.00% 1/11/18 | 30,000 | 29,763 | |||||
3.875% 3/22/17 | 10,000 | 10,697 | |||||
5.20% 12/29/49 | 210,000 | 208,950 | |||||
| Bank of New York Mellon | ||||||
4.50% 12/31/49 | 10,000 | 10,063 | |||||
* | Barclays Bank 7.625% 11/21/22 | 375,000 | 377,813 | ||||
Citigroup 3.50% 5/15/23 | 10,000 | 9,424 | |||||
City National 5.25% 9/15/20 | 15,000 | 16,888 | |||||
| Fifth Third Bancorp | ||||||
5.10% 12/31/49 | 195,000 | 195,000 | |||||
| Fifth Third Capital Trust IV | ||||||
6.50% 4/15/37 | 5,000 | 5,031 | |||||
# | HBOS Capital Funding 144A | ||||||
6.071% 6/29/49 | 864,000 | 792,719 | |||||
HSBC Holdings 4.00% 3/30/22 | 20,000 | 21,244 | |||||
JPMorgan Chase 1.625% 5/15/18 | 10,000 | 9,824 | |||||
Morgan Stanley | |||||||
2.125% 4/25/18 | 20,000 | 19,765 | |||||
4.10% 5/22/23 | 30,000 | 28,800 | |||||
| PNC Financial Services Group | ||||||
4.494% 5/29/49 | 10,000 | 10,000 | |||||
4.85% 5/29/49 | 5,000 | 4,975 | |||||
PNC Funding | |||||||
5.125% 2/8/20 | 30,000 | 34,643 | |||||
5.625% 2/1/17 | 35,000 | 39,502 | |||||
Regions Financial 2.00% 5/15/18 | 5,000 | 4,902 | |||||
Santander Holdings USA | |||||||
4.625% 4/19/16 | 10,000 | 10,705 | |||||
State Street 3.10% 5/15/23 | 10,000 | 9,744 | |||||
* | SVB Financial Group | ||||||
5.375% 9/15/20 | 25,000 | 28,313 | |||||
# | Turkiye Halk Bankasi 144A | ||||||
3.875% 2/5/20 | 300,000 | 296,250 | |||||
| USB Capital IX 3.50% 10/29/49 | 80,000 | 75,800 | ||||
Wachovia | |||||||
0.647% 10/15/16 | 10,000 | 9,877 | |||||
5.25% 8/1/14 | 20,000 | 21,035 | |||||
Zions Bancorporation | |||||||
4.50% 3/27/17 | 5,000 | 5,390 | |||||
7.75% 9/23/14 | 5,000 | 5,400 | |||||
2,292,517 | |||||||
Basic Industry 4.56% | |||||||
AK Steel 7.625% 5/15/20 | 221,000 | 198,900 | |||||
# | American Builders & | ||||||
Contractors Supply 144A | |||||||
5.625% 4/15/21 | 110,000 | 111,650 | |||||
# | APERAM 144A 7.75% 4/1/18 | 225,000 | 225,000 | ||||
ArcelorMittal | |||||||
6.125% 6/1/18 | 775,000 | 824,405 | |||||
10.35% 6/1/19 | 15,000 | 18,638 | |||||
# | Barrick Gold 144A | ||||||
2.50% 5/1/18 | 5,000 | 4,940 | |||||
4.10% 5/1/23 | 15,000 | 14,288 | |||||
Barrick North America Finance | |||||||
4.40% 5/30/21 | 5,000 | 5,032 | |||||
# | Builders FirstSource 144A | ||||||
7.625% 6/1/21 | 280,000 | 282,100 | |||||
# | Cemex Espana Luxembourg | ||||||
144A 9.25% 5/12/20 | 309,000 | 332,948 | |||||
CF Industries | |||||||
4.95% 6/1/43 | 5,000 | 4,970 | |||||
6.875% 5/1/18 | 25,000 | 30,069 | |||||
Dow Chemical 8.55% 5/15/19 | 34,000 | 45,294 | |||||
# | Essar Steel Algoma 144A | ||||||
9.375% 3/15/15 | 205,000 | 191,675 | |||||
*# | FMG Resources August 2006 144A | ||||||
6.875% 2/1/18 | 115,000 | 117,444 | |||||
6.875% 4/1/22 | 275,000 | 278,781 | |||||
# | Freeport-McMoRan Copper & | ||||||
Gold 144A 3.875% 3/15/23 | 15,000 | 14,629 | |||||
Georgia-Pacific 8.00% 1/15/24 | 25,000 | 34,111 | |||||
# | Glencore Funding 144A | ||||||
2.50% 1/15/19 | 15,000 | 14,737 | |||||
HD Supply | |||||||
#144A 7.50% 7/15/20 | 400,000 | 424,999 | |||||
10.50% 1/15/21 | 55,000 | 57,269 | |||||
Headwaters 7.625% 4/1/19 | 310,000 | 334,025 | |||||
# | Inmet Mining 144A 8.75% 6/1/20 | 300,000 | 324,750 | ||||
International Paper | |||||||
6.00% 11/15/41 | 10,000 | 11,598 | |||||
9.375% 5/15/19 | 5,000 | 6,785 | |||||
# | JMC Steel Group 144A | ||||||
8.25% 3/15/18 | 385,000 | 391,738 | |||||
# | Kinove German Bondco 144A | ||||||
9.625% 6/15/18 | 320,000 | 357,600 | |||||
# | MacDermid 144A 9.50% 4/15/17 | 396,000 | 410,603 | ||||
# | Masonite International 144A | ||||||
8.25% 4/15/21 | 370,000 | 412,550 | |||||
# | New Gold 144A 6.25% 11/15/22 | 380,000 | 393,300 | ||||
Norcraft 10.50% 12/15/15 | 186,000 | 194,603 | |||||
Nortek 8.50% 4/15/21 | 320,000 | 352,000 | |||||
Peabody Energy 6.25% 11/15/21 | 300,000 | 315,000 | |||||
# | Perstorp Holding 144A | ||||||
8.75% 5/15/17 | 400,000 | 415,000 | |||||
Praxair 1.25% 11/7/18 | 5,000 | 4,914 | |||||
Rockwood Specialties Group | |||||||
4.625% 10/15/20 | 360,000 | 368,550 | |||||
# | Ryerson 144A | ||||||
9.00% 10/15/17 | 245,000 | 265,519 | |||||
11.25% 10/15/18 | 105,000 | 112,088 |
8
Principal | Value | ||||||
Amount° | (U.S. $) | ||||||
Corporate Bonds (continued) | |||||||
Basic Industry (continued) | |||||||
# | Sappi Papier Holding 144A | ||||||
8.375% 6/15/19 | USD | 405,000 | $ | 448,030 | |||
# | Taminco Global Chemical 144A | ||||||
9.75% 3/31/20 | 290,000 | 329,875 | |||||
# | TPC Group 144A | ||||||
8.75% 12/15/20 | 450,000 | 476,999 | |||||
*# | US Coatings Acquisition 144A | ||||||
7.375% 5/1/21 | 230,000 | 243,513 | |||||
9,400,919 | |||||||
Brokerage 0.03% | |||||||
Jefferies Group | |||||||
5.125% 1/20/23 | 10,000 | 10,479 | |||||
6.45% 6/8/27 | 5,000 | 5,575 | |||||
6.50% 1/20/43 | 5,000 | 5,352 | |||||
Lazard Group 6.85% 6/15/17 | 34,000 | 38,986 | |||||
60,392 | |||||||
Capital Goods 2.84% | |||||||
Anixter 10.00% 3/15/14 | 15,000 | 15,923 | |||||
# | Ardagh Packaging Finance | ||||||
144A 7.00% 11/15/20 | 360,000 | 369,900 | |||||
Berry Plastics 9.75% 1/15/21 | 217,000 | 251,720 | |||||
# | BOE Intermediate Holding PIK | ||||||
144A 9.00% 11/1/17 | 145,000 | 143,550 | |||||
# | BOE Merger PIK 144A | ||||||
9.50% 11/1/17 | 375,000 | 392,813 | |||||
# | Consolidated Container 144A | ||||||
10.125% 7/15/20 | 385,000 | 436,013 | |||||
# | Crown Americas 144A | ||||||
4.50% 1/15/23 | 35,000 | 34,388 | |||||
# | GenCorp 144A 7.125% 3/15/21 | 175,000 | 188,125 | ||||
Kratos Defense & Security | |||||||
Solutions 10.00% 6/1/17 | 275,000 | 301,125 | |||||
# | Milacron 144A 7.75% 2/15/21 | 375,000 | 395,625 | ||||
Mueller Water Products | |||||||
7.375% 6/1/17 | 300,000 | 309,000 | |||||
Northrop Grumman | |||||||
3.25% 8/1/23 | 15,000 | 14,826 | |||||
Reynolds Group Issuer | |||||||
5.75% 10/15/20 | 175,000 | 178,063 | |||||
9.875% 8/15/19 | 555,000 | 607,030 | |||||
# | Sealed Air 144A | ||||||
8.125% 9/15/19 | 70,000 | 79,625 | |||||
8.375% 9/15/21 | 475,000 | 550,999 | |||||
# | Silver II Borrower 144A | ||||||
7.75% 12/15/20 | 365,000 | 380,513 | |||||
# | Votorantim Cimentos 144A | ||||||
7.25% 4/5/41 | 1,118,000 | 1,201,849 | |||||
5,851,087 | |||||||
Communications 3.54% | |||||||
American Tower 5.90% 11/1/21 | 15,000 | 17,347 | |||||
# | American Tower Trust I 144A | ||||||
1.551% 3/15/18 | 5,000 | 4,989 | |||||
3.07% 3/15/23 | 20,000 | 19,774 | |||||
# | CC Holdings 144A | ||||||
3.849% 4/15/23 | 5,000 | 4,993 | |||||
CenturyLink 5.80% 3/15/22 | 210,000 | 215,775 | |||||
# | Clearwire Communications | ||||||
144A 12.00% 12/1/15 | 375,000 | 401,738 | |||||
# | Columbus International 144A | ||||||
11.50% 11/20/14 | 270,000 | 301,725 | |||||
# | Cox Communications 144A | ||||||
3.25% 12/15/22 | 20,000 | 19,701 | |||||
# | Crown Castle Towers 144A | ||||||
4.883% 8/15/20 | 30,000 | 33,374 | |||||
# | Digicel Group 144A | ||||||
8.25% 9/30/20 | 530,000 | 567,099 | |||||
Equinix | |||||||
4.875% 4/1/20 | 132,000 | 134,970 | |||||
5.375% 4/1/23 | 263,000 | 272,863 | |||||
Hughes Satellite Systems | |||||||
7.625% 6/15/21 | 280,000 | 314,300 | |||||
# | Intelsat Jackson Holdings 144A | ||||||
5.50% 8/1/23 | 85,000 | 83,513 | |||||
# | Intelsat Luxembourg 144A | ||||||
7.75% 6/1/21 | 445,000 | 469,475 | |||||
8.125% 6/1/23 | 490,000 | 526,138 | |||||
Interpublic Group | |||||||
3.75% 2/15/23 | 10,000 | 9,796 | |||||
4.00% 3/15/22 | 15,000 | 15,093 | |||||
Level 3 Communications | |||||||
*8.875% 6/1/19 | 190,000 | 206,863 | |||||
11.875% 2/1/19 | 280,000 | 322,700 | |||||
Level 3 Financing 7.00% 6/1/20 | 245,000 | 258,781 | |||||
# | MetroPCS Wireless 144A | ||||||
6.25% 4/1/21 | 180,000 | 189,225 | |||||
Qwest 6.75% 12/1/21 | 10,000 | 11,508 | |||||
# | SES 144A 3.60% 4/4/23 | 20,000 | 20,066 | ||||
Sprint Capital 8.75% 3/15/32 | 178,000 | 208,260 | |||||
Sprint Nextel | |||||||
8.375% 8/15/17 | 475,000 | 549,813 | |||||
9.125% 3/1/17 | 125,000 | 146,875 | |||||
Time Warner Cable 8.25% 4/1/19 | 20,000 | 25,791 | |||||
# | VimpelCom 144A 7.748% 2/2/21 | 275,000 | 304,631 | ||||
# | Vivendi 144A | ||||||
3.45% 1/12/18 | 5,000 | 5,159 | |||||
6.625% 4/4/18 | 10,000 | 11,765 | |||||
Vodafone Group 2.95% 2/19/23 | 10,000 | 9,659 | |||||
# | Wind Acquisition Finance 144A | ||||||
7.25% 2/15/18 | 535,000 | 560,412 | |||||
11.75% 7/15/17 | 190,000 | 200,925 | |||||
Windstream 7.50% 4/1/23 | 235,000 | 247,925 | |||||
Zayo Group 10.125% 7/1/20 | 530,000 | 618,774 | |||||
7,311,795 |
(continues) 9
Statement of net assets
Delaware Enhanced Global Dividend and Income Fund
Principal | Value | ||||||
Amount° | (U.S. $) | ||||||
Corporate Bonds (continued) | |||||||
Consumer Cyclical 2.84% | |||||||
ADT 4.125% 6/15/23 | USD | 5,000 | $ | 5,004 | |||
Amazon.com 2.50% 11/29/22 | 20,000 | 19,013 | |||||
# | BC Mountain 144A | ||||||
7.00% 2/1/21 | 110,000 | 116,875 | |||||
# | Bon-Ton Department Stores | ||||||
144A 8.00% 6/15/21 | 395,000 | 407,344 | |||||
Brinker International | |||||||
2.60% 5/15/18 | 5,000 | 5,009 | |||||
3.875% 5/15/23 | 5,000 | 4,915 | |||||
Burlington Coat Factory | |||||||
Warehouse 10.00% 2/15/19 | 325,000 | 364,406 | |||||
# | CDR DB Sub 144A 7.75% 10/15/20 | 450,000 | 471,375 | ||||
CKE Restaurants 11.375% 7/15/18 | 21,000 | 21,971 | |||||
#* | Claires Stores 144A 7.75% 6/1/20 | 110,000 | 111,925 | ||||
Dave & Busters 11.00% 6/1/18 | 330,000 | 372,075 | |||||
#^ | Dave & Busters Entertainment | ||||||
144A 10.004% 2/15/16 | 510,000 | 397,800 | |||||
Dollar General | |||||||
1.875% 4/15/18 | 5,000 | 4,980 | |||||
3.25% 4/15/23 | 5,000 | 4,862 | |||||
eBay 4.00% 7/15/42 | 10,000 | 8,897 | |||||
Express 8.75% 3/1/18 | 118,000 | 128,178 | |||||
Historic TW 6.875% 6/15/18 | 25,000 | 30,666 | |||||
Host Hotels & Resorts | |||||||
4.75% 3/1/23 | 20,000 | 21,199 | |||||
# | Landrys 144A 9.375% 5/1/20 | 455,000 | 497,087 | ||||
# | LKQ 144A 4.75% 5/15/23 | 405,000 | 405,000 | ||||
Michaels Stores | |||||||
11.375% 11/1/16 | 61,000 | 63,974 | |||||
Pantry 8.375% 8/1/20 | 405,000 | 444,994 | |||||
# | Party City Holdings 144A | ||||||
8.875% 8/1/20 | 435,000 | 490,462 | |||||
* | Quiksilver 6.875% 4/15/15 | 250,000 | 250,315 | ||||
# | QVC 144A 4.375% 3/15/23 | 15,000 | 15,106 | ||||
Rite Aid 9.25% 3/15/20 | 385,000 | 436,494 | |||||
# | Tempur-Pedic International | ||||||
144A 6.875% 12/15/20 | 285,000 | 308,869 | |||||
Western Union 3.65% 8/22/18 | 10,000 | 10,448 | |||||
# | Wok Acquisition 144A | ||||||
10.25% 6/30/20 | 375,000 | 421,875 | |||||
Wyndham Worldwide | |||||||
4.25% 3/1/22 | 5,000 | 5,095 | |||||
5.625% 3/1/21 | 10,000 | 11,012 | |||||
5,857,225 | |||||||
Consumer Non-Cyclical 1.53% | |||||||
# | Alphabet Holding PIK 144A | ||||||
7.75% 11/1/17 | 145,000 | 150,075 | |||||
B&G Foods 4.625% 6/1/21 | 215,000 | 215,000 | |||||
Boston Scientific 6.00% 1/15/20 | 10,000 | 11,666 | |||||
CareFusion 6.375% 8/1/19 | 65,000 | 76,799 | |||||
Celgene 3.95% 10/15/20 | 15,000 | 16,001 | |||||
Constellation Brands | |||||||
3.75% 5/1/21 | 65,000 | 63,538 | |||||
6.00% 5/1/22 | 290,000 | 326,974 | |||||
Covidien International Finance | |||||||
4.20% 6/15/20 | 20,000 | 22,091 | |||||
Del Monte 7.625% 2/15/19 | 300,000 | 312,375 | |||||
Energizer Holdings | |||||||
4.70% 5/24/22 | 20,000 | 20,992 | |||||
#* | ESAL 144A 6.25% 2/5/23 | 400,000 | 398,999 | ||||
# | First Quality Finance 144A | ||||||
4.625% 5/15/21 | 225,000 | 220,500 | |||||
# | Heineken 144A 3.40% 4/1/22 | 15,000 | 15,281 | ||||
# | Heinz (H.J.) Finance 144A | ||||||
7.125% 8/1/39 | 175,000 | 198,188 | |||||
# | JBS USA 144A 8.25% 2/1/20 | 290,000 | 319,724 | ||||
Laboratory Corp. of America | |||||||
Holdings 2.20% 8/23/17 | 15,000 | 15,071 | |||||
Merck 2.80% 5/18/23 | 5,000 | 4,908 | |||||
Molson Coors Brewing | |||||||
5.00% 5/1/42 | 10,000 | 10,312 | |||||
# | Mylan 144A 3.125% 1/15/23 | 10,000 | 9,550 | ||||
Newell Rubbermaid | |||||||
2.05% 12/1/17 | 5,000 | 4,989 | |||||
Quest Diagnostics 4.70% 4/1/21 | 5,000 | 5,342 | |||||
Smithfield Foods 6.625% 8/15/22 | 125,000 | 142,500 | |||||
# | Spectrum Brands Escrow 144A | ||||||
6.375% 11/15/20 | 75,000 | 80,719 | |||||
6.625% 11/15/22 | 280,000 | 303,100 | |||||
St. Jude Medical 3.25% 4/15/23 | 15,000 | 14,769 | |||||
Visant 10.00% 10/1/17 | 145,000 | 139,563 | |||||
Zimmer Holdings | |||||||
4.625% 11/30/19 | 30,000 | 33,679 | |||||
# | Zoetis 144A 3.25% 2/1/23 | 15,000 | 14,871 | ||||
3,147,576 | |||||||
Energy 6.97% | |||||||
AmeriGas Finance 7.00% 5/20/22 | 300,000 | 327,000 | |||||
Antero Resources Finance | |||||||
6.00% 12/1/20 | 415,000 | 433,675 | |||||
* | Apache 2.625% 1/15/23 | 10,000 | 9,587 | ||||
# | Athlon Holdings 144A | ||||||
7.375% 4/15/21 | 280,000 | 291,900 | |||||
Calumet Specialty Products | |||||||
Partners 9.375% 5/1/19 | 720,000 | 804,599 | |||||
Chaparral Energy | |||||||
7.625% 11/15/22 | 180,000 | 195,300 | |||||
8.25% 9/1/21 | 160,000 | 177,600 | |||||
# | CHC Helicopter 144A | ||||||
9.375% 6/1/21 | 210,000 | 216,038 | |||||
Chesapeake Energy | |||||||
5.375% 6/15/21 | 80,000 | 81,600 | |||||
5.75% 3/15/23 | 120,000 | 125,100 | |||||
6.125% 2/15/21 | 55,000 | 60,225 | |||||
6.625% 8/15/20 | 335,000 | 374,363 | |||||
Comstock Resources | |||||||
7.75% 4/1/19 | 365,000 | 387,813 | |||||
Copano Energy 7.125% 4/1/21 | 65,000 | 75,238 |
10
Principal | Value | ||||||
Amount° | (U.S. $) | ||||||
Corporate Bonds (continued) | |||||||
Energy (continued) | |||||||
Crosstex Energy | |||||||
7.125% 6/1/22 | USD | 135,000 | $ | 145,125 | |||
8.875% 2/15/18 | 210,000 | 226,800 | |||||
# | Drill Rigs Holdings 144A | ||||||
6.50% 10/1/17 | 390,000 | 399,750 | |||||
# | Exterran Partners 144A | ||||||
6.00% 4/1/21 | 395,000 | 406,850 | |||||
# | Gazprom 144A 3.85% 2/6/20 | 500,000 | 492,364 | ||||
# | Genesis Energy 144A | ||||||
5.75% 2/15/21 | 440,000 | 449,625 | |||||
# | Halcon Resources 144A | ||||||
8.875% 5/15/21 | 425,000 | 434,563 | |||||
# | Hercules Offshore 144A | ||||||
10.50% 10/15/17 | 547,000 | 590,759 | |||||
# | Hilcorp Energy I 144A | ||||||
8.00% 2/15/20 | 271,000 | 300,810 | |||||
Kodiak Oil & Gas | |||||||
*#144A 5.50% 1/15/21 | 10,000 | 10,388 | |||||
8.125% 12/1/19 | 430,000 | 485,899 | |||||
Laredo Petroleum | |||||||
7.375% 5/1/22 | 75,000 | 82,875 | |||||
9.50% 2/15/19 | 325,000 | 369,688 | |||||
Linn Energy | |||||||
6.50% 5/15/19 | 60,000 | 61,350 | |||||
8.625% 4/15/20 | 241,000 | 265,100 | |||||
MarkWest Energy Partners | |||||||
6.50% 8/15/21 | 174,000 | 189,225 | |||||
# | Midstates Petroleum 144A | ||||||
9.25% 6/1/21 | 335,000 | 333,744 | |||||
Newfield Exploration | |||||||
5.625% 7/1/24 | 10,000 | 10,550 | |||||
Noble Holding International | |||||||
3.95% 3/15/22 | 10,000 | 10,182 | |||||
5.25% 3/15/42 | 5,000 | 4,884 | |||||
Northern Oil & Gas | |||||||
8.00% 6/1/20 | 370,000 | 386,650 | |||||
# | Offshore Group Investment | ||||||
144A 7.125% 4/1/23 | 180,000 | 186,750 | |||||
# | PDC Energy 144A | ||||||
7.75% 10/15/22 | 385,000 | 421,575 | |||||
Pemex Project Funding Master | |||||||
Trust 6.625% 6/15/35 | 1,000,000 | 1,149,999 | |||||
Petrobras International Finance | |||||||
5.375% 1/27/21 | 39,000 | 41,431 | |||||
# | Petroleos Mexicanos 144A | ||||||
5.50% 6/27/44 | 512,000 | 503,039 | |||||
Pioneer Energy Services | |||||||
9.875% 3/15/18 | 361,000 | 395,295 | |||||
Pride International | |||||||
6.875% 8/15/20 | 20,000 | 24,783 | |||||
Range Resources 5.00% 8/15/22 | 300,000 | 306,000 | |||||
# | Regency Energy Partners 144A | ||||||
4.50% 11/1/23 | 80,000 | 79,400 | |||||
Rosetta Resources | |||||||
5.625% 5/1/21 | 250,000 | 250,938 | |||||
# | Samson Investment 144A | ||||||
9.75% 2/15/20 | 440,000 | 460,900 | |||||
SandRidge Energy | |||||||
7.50% 3/15/21 | 155,000 | 160,425 | |||||
8.125% 10/15/22 | 395,000 | 423,638 | |||||
*8.75% 1/15/20 | 10,000 | 10,800 | |||||
Statoil | |||||||
2.65% 1/15/24 | 5,000 | 4,787 | |||||
3.95% 5/15/43 | 5,000 | 4,708 | |||||
Talisman Energy 5.50% 5/15/42 | 25,000 | 25,739 | |||||
# | Targa Resources Partners 144A | ||||||
4.25% 11/15/23 | 185,000 | 177,138 | |||||
TNK-BP Finance | |||||||
7.875% 3/13/18 | 400,000 | 472,999 | |||||
Weatherford International | |||||||
4.50% 4/15/22 | 5,000 | 5,153 | |||||
9.625% 3/1/19 | 15,000 | 19,519 | |||||
# | Woodside Finance 144A | ||||||
8.125% 3/1/14 | 15,000 | 15,757 | |||||
8.75% 3/1/19 | 15,000 | 19,765 | |||||
14,377,757 | |||||||
Financials 0.83% | |||||||
E Trade Financial 6.375% 11/15/19 | 390,000 | 411,450 | |||||
General Electric Capital | |||||||
2.10% 12/11/19 | 35,000 | 34,934 | |||||
6.00% 8/7/19 | 50,000 | 60,073 | |||||
# | ILFC E-Capital Trust II 144A | ||||||
6.25% 12/21/65 | 455,000 | 429,975 | |||||
International Lease Finance | |||||||
4.625% 4/15/21 | 180,000 | 178,988 | |||||
6.25% 5/15/19 | 12,000 | 13,170 | |||||
8.75% 3/15/17 | 20,000 | 23,775 | |||||
# | Nuveen Investments 144A | ||||||
9.50% 10/15/20 | 455,000 | 490,263 | |||||
# | Provident Funding Associates | ||||||
144A 6.75% 6/15/21 | 75,000 | 76,875 | |||||
1,719,503 | |||||||
Healthcare 2.45% | |||||||
Air Medical Group Holdings | |||||||
9.25% 11/1/18 | 257,000 | 283,343 | |||||
# | Alere 144A | ||||||
6.50% 6/15/20 | 220,000 | 221,925 | |||||
7.25% 7/1/18 | 195,000 | 212,550 | |||||
# | Biomet 144A 6.50% 10/1/20 | 390,000 | 396,825 | ||||
# | CDRT Holding PIK 144A | ||||||
9.25% 10/1/17 | 190,000 | 196,175 | |||||
Community Health Systems | |||||||
7.125% 7/15/20 | 290,000 | 318,638 | |||||
8.00% 11/15/19 | 265,000 | 292,825 | |||||
DaVita HealthCare Partners | |||||||
6.625% 11/1/20 | 300,000 | 321,750 |
(continues) 11
Statement of net assets
Delaware Enhanced Global Dividend and Income Fund
Principal | Value | ||||||
Amount° | (U.S. $) | ||||||
Corporate Bonds (continued) | |||||||
Healthcare (continued) | |||||||
Immucor 11.125% 8/15/19 | USD | 275,000 | $ | 312,813 | |||
Kinetic Concepts | |||||||
10.50% 11/1/18 | 250,000 | 271,875 | |||||
*12.50% 11/1/19 | 215,000 | 223,600 | |||||
# | MultiPlan 144A 9.875% 9/1/18 | 428,000 | 481,499 | ||||
Radnet Management | |||||||
10.375% 4/1/18 | 209,000 | 225,459 | |||||
# | Sky Growth Acquisition | ||||||
Holdings 144A | |||||||
7.375% 10/15/20 | 590,000 | 629,824 | |||||
# | STHI Holding 144A 8.00% 3/15/18 | 275,000 | 301,125 | ||||
# | Truven Health Analytics 144A | ||||||
10.625% 6/1/20 | 125,000 | 141,875 | |||||
# | VPI Escrow 144A 6.375% 10/15/20 | 220,000 | 232,100 | ||||
5,064,201 | |||||||
Industrials 0.02% | |||||||
# | URS 144A 4.10% 4/1/17 | 10,000 | 10,374 | ||||
Yale University 2.90% 10/15/14 | 22,000 | 22,747 | |||||
33,121 | |||||||
Insurance 1.68% | |||||||
American International Group | |||||||
6.40% 12/15/20 | 15,000 | 18,160 | |||||
8.175% 5/15/58 | 435,000 | 572,025 | |||||
| Chubb 6.375% 3/29/67 | 15,000 | 16,950 | ||||
# | Highmark 144A | ||||||
4.75% 5/15/21 | 5,000 | 4,885 | |||||
6.125% 5/15/41 | 5,000 | 4,657 | |||||
# | Hub International 144A | ||||||
8.125% 10/15/18 | 450,000 | 486,000 | |||||
* | ING Groep 5.775% 12/29/49 | 725,000 | 710,499 | ||||
# | ING US 144A | ||||||
3.15% 2/15/18 | 5,000 | 5,097 | |||||
5.75% 7/15/22 | 5,000 | 5,590 | |||||
# | Liberty Mutual Group 144A | ||||||
4.95% 5/1/22 | 10,000 | 10,913 | |||||
6.50% 5/1/42 | 10,000 | 11,733 | |||||
7.00% 3/15/37 | 385,000 | 404,250 | |||||
MetLife 6.40% 12/15/36 | 100,000 | 113,500 | |||||
# | Onex USI Acquisition 144A | ||||||
7.75% 1/15/21 | 395,000 | 407,838 | |||||
Prudential Financial | |||||||
3.875% 1/14/15 | 35,000 | 36,685 | |||||
WellPoint 3.30% 1/15/23 | 20,000 | 19,893 | |||||
| XL Group 6.50% 12/29/49 | 625,000 | 629,687 | ||||
3,458,362 | |||||||
Media 3.20% | |||||||
AMC Networks 4.75% 12/15/22 | 200,000 | 200,500 | |||||
CCO Holdings 5.25% 9/30/22 | 385,000 | 386,925 | |||||
# | Cequel Communications | ||||||
Holdings 1 144A | |||||||
6.375% 9/15/20 | 300,000 | 315,000 | |||||
Clear Channel Communications | |||||||
9.00% 3/1/21 | 655,000 | 653,362 | |||||
Clear Channel Worldwide | |||||||
Holdings 7.625% 3/15/20 | 390,000 | 416,175 | |||||
# | Cogeco Cable 144A | ||||||
4.875% 5/1/20 | 190,000 | 190,000 | |||||
CSC Holdings 6.75% 11/15/21 | 265,000 | 298,125 | |||||
DISH DBS 5.00% 3/15/23 | 560,000 | 532,000 | |||||
# | Griffey Intermediate 144A | ||||||
7.00% 10/15/20 | 385,000 | 391,738 | |||||
# | Lynx II 144A 6.375% 4/15/23 | 400,000 | 419,000 | ||||
# | MDC Partners 144A | ||||||
6.75% 4/1/20 | 255,000 | 262,013 | |||||
# | Nara Cable Funding 144A | ||||||
8.875% 12/1/18 | 400,000 | 421,000 | |||||
# | Nexstar Broadcasting 144A | ||||||
6.875% 11/15/20 | 385,000 | 411,950 | |||||
# | Ono Finance II 144A | ||||||
10.875% 7/15/19 | 240,000 | 255,000 | |||||
Satelites Mexicanos | |||||||
9.50% 5/15/17 | 160,000 | 173,600 | |||||
# | Sirius XM Radio 144A | ||||||
4.625% 5/15/23 | 150,000 | 144,375 | |||||
# | Univision Communications | ||||||
144A 8.50% 5/15/21 | 735,000 | 799,312 | |||||
# | UPCB Finance VI 144A | ||||||
6.875% 1/15/22 | 300,000 | 325,500 | |||||
6,595,575 | |||||||
Natural Gas 0.13% | |||||||
# | DCP Midstream 144A | ||||||
5.85% 5/21/43 | 15,000 | 15,113 | |||||
El Paso Pipeline Partners | |||||||
Operating 6.50% 4/1/20 | 15,000 | 18,076 | |||||
| Enbridge Energy Partners | ||||||
8.05% 10/1/37 | 25,000 | 29,166 | |||||
Energy Transfer Partners | |||||||
9.70% 3/15/19 | 7,000 | 9,347 | |||||
Enterprise Products Operating | |||||||
7.034% 1/15/68 | 25,000 | 29,029 | |||||
9.75% 1/31/14 | 5,000 | 5,295 | |||||
# | GDF Suez 144A | ||||||
2.875% 10/10/22 | 10,000 | 9,836 | |||||
Kinder Morgan Energy Partners | |||||||
9.00% 2/1/19 | 20,000 | 26,442 | |||||
Nisource Finance | |||||||
3.85% 2/15/23 | 5,000 | 5,105 | |||||
4.80% 2/15/44 | 15,000 | 14,672 | |||||
5.80% 2/1/42 | 5,000 | 5,553 | |||||
Plains All American Pipeline | |||||||
8.75% 5/1/19 | 10,000 | 13,372 | |||||
Spectra Energy Capital | |||||||
3.30% 3/15/23 | 5,000 | 4,883 | |||||
Sunoco Logistics Partners | |||||||
Operations 3.45% 1/15/23 | 20,000 | 19,385 | |||||
| TransCanada Pipelines | ||||||
6.35% 5/15/67 | 30,000 | 32,135 | |||||
Williams Partners 7.25% 2/1/17 | 20,000 | 23,799 | |||||
261,208 |
12
Principal | Value | ||||||
Amount° | (U.S. $) | ||||||
Corporate Bonds (continued) | |||||||
Real Estate Investment Trusts 0.08% | |||||||
Alexandria Real Estate Equities | |||||||
4.60% 4/1/22 | USD | 15,000 | $ | 16,058 | |||
BRE Properties 3.375% 1/15/23 | 10,000 | 9,735 | |||||
# | Corporate Office Properties | ||||||
144A 3.60% 5/15/23 | 5,000 | 4,823 | |||||
Developers Diversified Realty | |||||||
4.75% 4/15/18 | 5,000 | 5,533 | |||||
7.50% 4/1/17 | 5,000 | 5,944 | |||||
7.875% 9/1/20 | 20,000 | 25,499 | |||||
Digital Realty Trust | |||||||
5.25% 3/15/21 | 20,000 | 22,270 | |||||
5.875% 2/1/20 | 10,000 | 11,569 | |||||
Duke Realty 3.625% 4/15/23 | 5,000 | 4,894 | |||||
National Retail Properties | |||||||
3.30% 4/15/23 | 5,000 | 4,862 | |||||
3.80% 10/15/22 | 5,000 | 5,138 | |||||
Regency Centers 5.875% 6/15/17 | 20,000 | 22,743 | |||||
UDR 4.625% 1/10/22 | 15,000 | 16,343 | |||||
# | WEA Finance 144A | ||||||
4.625% 5/10/21 | 10,000 | 11,002 | |||||
Weingarten Realty Investors | |||||||
3.50% 4/15/23 | 10,000 | 9,767 | |||||
176,180 | |||||||
Services 4.16% | |||||||
# | Algeco Scotsman Global | ||||||
Finance 144A | |||||||
8.50% 10/15/18 | 175,000 | 182,875 | |||||
10.75% 10/15/19 | 585,000 | 582,074 | |||||
Ameristar Casinos 7.50% 4/15/21 | 285,000 | 312,075 | |||||
# | Avis Budget Car Rental 144A | ||||||
5.50% 4/1/23 | 350,000 | 355,250 | |||||
*# | Beazer Homes USA 144A | ||||||
7.25% 2/1/23 | 110,000 | 117,013 | |||||
Caesars Entertainment | |||||||
Operating 8.50% 2/15/20 | 380,000 | 363,138 | |||||
# | Carlson Wagonlit 144A | ||||||
6.875% 6/15/19 | 290,000 | 306,675 | |||||
# | DigitalGlobe 144A 5.25% 2/1/21 | 325,000 | 329,063 | ||||
# | Geo Group 144A 5.125% 4/1/23 | 330,000 | 337,425 | ||||
H&E Equipment Services | |||||||
7.00% 9/1/22 | 350,000 | 379,750 | |||||
M/I Homes 8.625% 11/15/18 | 486,000 | 539,459 | |||||
*# | Mattamy Group 144A | ||||||
6.50% 11/15/20 | 390,000 | 390,975 | |||||
Meritage Homes 7.00% 4/1/22 | 60,000 | 67,650 | |||||
MGM Resorts International | |||||||
#144A 6.75% 10/1/20 | 215,000 | 234,888 | |||||
7.75% 3/15/22 | 180,000 | 206,100 | |||||
11.375% 3/1/18 | 473,000 | 614,899 | |||||
NCL | |||||||
#144A 5.00% 2/15/18 | 126,000 | 129,150 | |||||
9.50% 11/15/18 | 35,000 | 39,638 | |||||
PHH | |||||||
*7.375% 9/1/19 | 205,000 | 233,700 | |||||
9.25% 3/1/16 | 196,000 | 228,830 | |||||
Pinnacle Entertainment | |||||||
7.75% 4/1/22 | 125,000 | 136,875 | |||||
8.75% 5/15/20 | 58,000 | 63,583 | |||||
RSC Equipment Rental | |||||||
8.25% 2/1/21 | 255,000 | 283,688 | |||||
Seven Seas Cruises | |||||||
9.125% 5/15/19 | 305,000 | 334,738 | |||||
Swift Services Holdings | |||||||
10.00% 11/15/18 | 370,000 | 424,574 | |||||
# | Taylor Morrison Communities | ||||||
144A 7.75% 4/15/20 | 277,000 | 310,240 | |||||
Toll Brothers Finance | |||||||
4.375% 4/15/23 | 430,000 | 436,449 | |||||
United Rentals North America | |||||||
6.125% 6/15/23 | 70,000 | 73,675 | |||||
7.625% 4/15/22 | 85,000 | 94,563 | |||||
# | Watco 144A 6.375% 4/1/23 | 185,000 | 195,638 | ||||
# | Wynn Las Vegas 144A | ||||||
4.25% 5/30/23 | 280,000 | 272,650 | |||||
8,577,300 | |||||||
Technology 2.24% | |||||||
Apple 2.40% 5/3/23 | 20,000 | 19,119 | |||||
# | Avaya 144A 10.50% 3/1/21 | 237,000 | 200,265 | ||||
CDW | |||||||
8.50% 4/1/19 | 225,000 | 250,031 | |||||
12.535% 10/12/17 | 171,000 | 184,680 | |||||
# | CommScope Holdings PIK | ||||||
144A 6.625% 6/1/20 | 75,000 | 74,438 | |||||
Fidelity National Information | |||||||
Services 3.50% 4/15/23 | 10,000 | 9,647 | |||||
First Data | |||||||
#144A 8.25% 1/15/21 | 375,000 | 399,375 | |||||
*11.25% 3/31/16 | 400,000 | 404,000 | |||||
#144A 11.25% 1/15/21 | 260,000 | 267,150 | |||||
*#144A 11.75% 8/15/21 | 180,000 | 174,600 | |||||
GXS Worldwide 9.75% 6/15/15 | 287,000 | 294,893 | |||||
iGate 9.00% 5/1/16 | 105,000 | 113,400 | |||||
Infor US 9.375% 4/1/19 | 445,000 | 503,962 | |||||
j2 Global 8.00% 8/1/20 | 585,000 | 631,799 | |||||
MagnaChip Semiconductor | |||||||
10.50% 4/15/18 | 156,000 | 173,550 | |||||
Microsoft 2.125% 11/15/22 | 10,000 | 9,495 | |||||
National Semiconductor | |||||||
6.60% 6/15/17 | 20,000 | 23,937 | |||||
NetApp | |||||||
2.00% 12/15/17 | 5,000 | 4,948 | |||||
3.25% 12/15/22 | 10,000 | 9,568 | |||||
Oracle 5.75% 4/15/18 | 5,000 | 5,961 | |||||
# | Seagate HDD Cayman 144A | ||||||
4.75% 6/1/23 | 420,000 | 409,500 | |||||
Symantec 4.20% 9/15/20 | 5,000 | 5,294 | |||||
Texas Instruments 2.25% 5/1/23 | 5,000 | 4,691 | |||||
Total System Services 3.75% 6/1/23 | 15,000 | 14,724 |
(continues) 13
Statement of net assets
Delaware Enhanced Global Dividend and Income Fund
Principal | Value | ||||||
Amount° | (U.S. $) | ||||||
Corporate Bonds (continued) | |||||||
Technology (continued) | |||||||
# | Viasystems 144A | ||||||
7.875% 5/1/19 | USD | 395,000 | $ | 424,624 | |||
Xerox 6.35% 5/15/18 | 10,000 | 11,719 | |||||
4,625,370 | |||||||
Transportation 0.04% | |||||||
# | Brambles USA 144A | ||||||
3.95% 4/1/15 | 15,000 | 15,723 | |||||
5.35% 4/1/20 | 15,000 | 16,928 | |||||
# | ERAC USA Finance 144A | ||||||
5.25% 10/1/20 | 35,000 | 39,955 | |||||
FedEx 4.10% 4/15/43 | 10,000 | 9,363 | |||||
# | Kansas City Southern de Mexico | ||||||
144A 3.00% 5/15/23 | 10,000 | 9,644 | |||||
91,613 | |||||||
Utilities 1.03% | |||||||
AES | |||||||
4.875% 5/15/23 | 205,000 | 201,925 | |||||
7.375% 7/1/21 | 295,000 | 346,625 | |||||
8.00% 6/1/20 | 64,000 | 77,120 | |||||
Ameren Illinois 9.75% 11/15/18 | 45,000 | 62,451 | |||||
# | American Transmission Systems | ||||||
144A 5.25% 1/15/22 | 25,000 | 27,970 | |||||
# | APT Pipelines 144A | ||||||
3.875% 10/11/22 | 5,000 | 4,934 | |||||
CenterPoint Energy 5.95% 2/1/17 | 13,000 | 14,895 | |||||
CMS Energy 6.25% 2/1/20 | 5,000 | 6,012 | |||||
Commonwealth Edison | |||||||
5.80% 3/15/18 | 5,000 | 5,921 | |||||
Elwood Energy 8.159% 7/5/26 | 217,204 | 236,752 | |||||
Exelon Generation 4.25% 6/15/22 | 25,000 | 25,940 | |||||
| FPL Group Capital 6.35% 10/1/66 | 20,000 | 21,216 | ||||
GenOn Energy 9.875% 10/15/20 | 390,000 | 442,651 | |||||
Great Plains Energy | |||||||
10.00% 6/15/22 | 15,000 | 16,837 | |||||
| Integrys Energy Group | ||||||
6.11% 12/1/66 | 15,000 | 15,920 | |||||
Ipalco Enterprises 5.00% 5/1/18 | 10,000 | 10,800 | |||||
Kansas City Power & Light | |||||||
3.15% 3/15/23 | 5,000 | 4,964 | |||||
LG&E & KU Energy | |||||||
4.375% 10/1/21 | 20,000 | 21,425 | |||||
Mirant Americas 8.50% 10/1/21 | 335,000 | 388,600 | |||||
# | Narragansett Electric 144A | ||||||
4.17% 12/10/42 | 5,000 | 4,796 | |||||
| National Rural Utilities | ||||||
Cooperative Finance | |||||||
4.75% 4/30/43 | 10,000 | 10,225 | |||||
NV Energy 6.25% 11/15/20 | 10,000 | 12,196 | |||||
Pennsylvania Electric | |||||||
5.20% 4/1/20 | 25,000 | 28,066 | |||||
| PPL Capital Funding | ||||||
6.70% 3/30/67 | 25,000 | 26,647 | |||||
PPL Electric Utilities | |||||||
3.00% 9/15/21 | 10,000 | 10,307 | |||||
Public Service Oklahoma | |||||||
5.15% 12/1/19 | 30,000 | 34,346 | |||||
Puget Energy 6.00% 9/1/21 | 5,000 | 5,608 | |||||
| Puget Sound Energy | ||||||
6.974% 6/1/67 | 20,000 | 21,384 | |||||
SCANA 4.125% 2/1/22 | 15,000 | 15,485 | |||||
| Wisconsin Energy 6.25% 5/15/67 | 20,000 | 21,744 | ||||
2,123,762 | |||||||
Total Corporate Bonds | |||||||
(cost $78,226,919) | 82,932,227 | ||||||
Non-Agency Asset-Backed Security 0.01% | |||||||
| Nissan Master Owner Trust | ||||||
Receivables Series 2012-A A | |||||||
0.669% 5/15/17 | 25,000 | 25,099 | |||||
Total Non-Agency Asset-Backed | |||||||
Security (cost $25,086) | 25,099 | ||||||
Non-Agency Collateralized Mortgage Obligations 0.11% | |||||||
Citicorp Mortgage Securities | |||||||
Series 2007-1 2A1 | |||||||
5.50% 1/25/22 | 12,899 | 12,960 | |||||
| Citicorp Residential Mortgage | ||||||
Securities Series 2006-3 A5 | |||||||
5.948% 11/25/36 | 100,000 | 96,706 | |||||
| GSR Mortgage Loan Trust | ||||||
Series 2006-AR1 3A1 | |||||||
2.992% 1/25/36 | 96,420 | 85,004 | |||||
| MASTR ARM Trust Series | ||||||
2006-2 4A1 2.649% 2/25/36 | 34,445 | 32,719 | |||||
Total Non-Agency Collateralized | |||||||
Mortgage Obligations | |||||||
(cost $228,457) | 227,389 | ||||||
«Senior Secured Loans 0.74% | |||||||
Equipower Resources Holdings | |||||||
2nd Lien 10.00% 5/23/19 | 150,000 | 154,500 | |||||
Hostess Brands 1st Lien 6.75% 3/12/20 | 325,000 | 333,125 | |||||
Panda Temple Power II Tranche B | |||||||
1st Lien 7.25% 3/28/19 | 320,000 | 326,400 | |||||
Penney (J.C.) 1st Lien 6.00% 5/21/18 | 205,000 | 208,203 | |||||
Rite Aid 2nd Lien 5.75% 8/3/20 | 198,000 | 205,301 | |||||
Smart & Final 2nd Lien | |||||||
10.50% 11/8/20 | 294,359 | 302,454 | |||||
Total Senior Secured Loans | |||||||
(cost $1,499,842) | 1,529,983 |
14
Principal | Value | ||||||
Amount° | (U.S. $) | ||||||
ΔSovereign Bonds 4.14% | |||||||
Brazil 2.19% | |||||||
Brazil Notas do Tesouro | |||||||
Nacional Serie F | |||||||
10.00% 1/1/17 | BRL | 9,600,000 | $ | 4,517,129 | |||
4,517,129 | |||||||
Indonesia 0.78% | |||||||
Indonesia Government | |||||||
International Bond | |||||||
6.625% 2/17/37 | USD | 1,350,000 | 1,611,563 | ||||
1,611,563 | |||||||
Mexico 0.41% | |||||||
Mexican Bonos | |||||||
7.50% 6/3/27 | MXN | 533,000 | 48,680 | ||||
7.75% 5/29/31 | MXN | 8,720,000 | 798,671 | ||||
847,351 | |||||||
Panama 0.44% | |||||||
Panama Government | |||||||
International Bond | |||||||
6.70% 1/26/36 | USD | 700,000 | 897,750 | ||||
897,750 | |||||||
Poland 0.32% | |||||||
Poland Government Bonds | |||||||
4.00% 10/25/23 | PLN | 624,000 | 196,694 | ||||
5.75% 10/25/21 | PLN | 1,318,000 | 468,067 | ||||
664,761 | |||||||
Total Sovereign Bonds | |||||||
(cost $9,291,109) | 8,538,554 | ||||||
U.S. Treasury Obligations 0.46% | |||||||
U.S. Treasury Bond | |||||||
2.75% 11/15/42 | USD | 115,000 | 102,961 | ||||
U.S. Treasury Notes | |||||||
1.00% 5/31/18 | 120,000 | 119,719 | |||||
*1.75% 5/15/23 | 750,000 | 722,695 | |||||
Total U.S. Treasury Obligations | |||||||
(cost $971,576) | 945,375 | ||||||
Leveraged Non-Recourse Security 0.00% | |||||||
t@#JPMorgan Fixed Income Pass | |||||||
Through Trust Series 2007-B | |||||||
144A 0.00% 1/15/87 | 500,000 | 0 | |||||
Total Leveraged Non-Recourse | |||||||
Security (cost $425,000) | 0 | ||||||
Number of | |||||||
Shares | |||||||
Limited Partnerships 0.36% | |||||||
Brookfield Infrastructure Partners | 5,400 | 196,128 | |||||
* | Lehigh Gas Partners | 22,400 | 555,744 | ||||
Total Limited Partnerships | |||||||
(cost $607,629) | 751,872 | ||||||
Preferred Stock 0.79% | |||||||
Alabama Power 5.625% | 410 | 10,640 | |||||
# | Ally Financial 144A 7.00% | 600 | 588,262 | ||||
BB&T 5.85% | 225 | 5,715 | |||||
Freddie Mac 6.02% | 40,000 | 202,000 | |||||
| GMAC Capital Trust I 8.125% | 12,000 | 319,440 | ||||
National Retail Properties 5.70% | 200 | 4,944 | |||||
* | Public Storage 5.20% | 200 | 4,972 | ||||
* | Regions Financial 6.375% | 16,000 | 405,280 | ||||
Vornado RealtyTrust 6.625% | 3,700 | 93,906 | |||||
Total Preferred Stock | |||||||
(cost $2,275,356) | 1,635,159 | ||||||
Principal | |||||||
Amount° | |||||||
Short-Term Investments 6.44% | |||||||
≠Discount Notes 2.50% | |||||||
Fannie Mae 0.06% 9/16/13 | USD | 1,111,736 | 1,111,606 | ||||
Federal Home Loan Bank | |||||||
0.045% 7/24/13 | 510,897 | 510,883 | |||||
0.05% 7/26/13 | 294,277 | 294,268 | |||||
0.06% 7/2/13 | 1,084,824 | 1,084,807 | |||||
0.06% 8/14/13 | 1,228,774 | 1,228,700 | |||||
0.06% 8/16/13 | 403,609 | 403,584 | |||||
0.06% 8/21/13 | 510,897 | 510,863 | |||||
5,144,711 | |||||||
Repurchase Agreements 3.94% | |||||||
Bank of America 0.03%, dated | |||||||
5/31/13, to be repurchased | |||||||
on 6/3/13, repurchase price | |||||||
$1,648,910 (collateralized | |||||||
by U.S. government | |||||||
obligations 0.75%-3.625% | |||||||
6/15/14-8/15/19; market | |||||||
value $1,681,884) | 1,648,906 | 1,648,906 | |||||
BNP Paribas 0.05%, dated | |||||||
5/31/13, to be repurchased | |||||||
on 6/3/13, repurchase price | |||||||
$6,487,121 (collateralized | |||||||
by U.S. government | |||||||
obligations 0.00%-1.75% | |||||||
8/29/13-1/31/18; market | |||||||
value $6,616,836) | 6,487,094 | 6,487,094 | |||||
8,136,000 | |||||||
Total Short-Term Investments | |||||||
(cost $13,280,431) | 13,280,711 | ||||||
Total Value of Securities Before Securities | |||||||
Lending Collateral 130.88% | |||||||
(cost $246,204,991) | 270,024,571 |
(continues) 15
Statement of net assets
Delaware Enhanced Global Dividend and Income Fund
Number of | Value | |||||
Shares | (U.S. $) | |||||
**Securities Lending Collateral 7.02% | ||||||
Investment Companies | ||||||
Delaware Investments | ||||||
Collateral Fund No.1 | 14,477,368 | $ | 14,477,368 | |||
@Mellon GSL Reinvestment Trust II | 278,673 | 0 | ||||
Total Securities Lending | ||||||
Collateral (cost $14,756,041) | 14,477,368 | |||||
Total Value of Securities 137.90% | ||||||
(cost $260,961,032) | 284,501,939 | © | ||||
**Obligation to Return Securities | ||||||
Lending Collateral (7.15%) | (14,756,041 | ) | ||||
Borrowing Under Line of Credit (31.86%) | (65,725,000 | ) | ||||
«Receivables and Other Assets | ||||||
Net of Other Liabilities 1.11% | 2,288,975 | |||||
Net Assets Applicable to 15,863,616 | ||||||
Shares Outstanding; Equivalent to | ||||||
$13.01 Per Share 100.00% | $ | 206,309,873 | ||||
Components of Net Assets at May 31, 2013: | ||||||
Shares of beneficial interest | ||||||
(unlimited authorization no par) | $ | 240,349,384 | ||||
Distributions in excess of net investment income | (3,481,021 | ) | ||||
Accumulated net realized loss on investments | (54,074,128 | ) | ||||
Net unrealized appreciation of investments | ||||||
and derivatives | 23,515,638 | |||||
Total net assets | $ | 206,309,873 |
v | Securities have been classified by type of business. Classification by country of origin has been presented on page 2 in Security type/sector and country allocations. |
| Non income producing security. |
* | Fully or partially on loan. |
= | Security is being fair valued in accordance with the Funds fair valuation policy. At May 31, 2013, the aggregate value of fair valued securities was $0, which represented 0.00% of the Funds net assets. See Note 1 in Notes to financial statements. |
# | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At May 31, 2013, the aggregate value of Rule 144A securities was $48,679,769, which represented 23.60% of the Funds net assets. See Note 8 in Notes to financial statements. |
° | Principal amount shown is stated in the currency in which each security is denominated. |
| Variable rate security. The rate shown is the rate as of May 31, 2013. Interest rates reset periodically. |
w | Pass Through Agreement. Security represents the contractual right to receive a proportionate amount of underlying payments due to the counterparty pursuant to various agreements related to the rescheduling of obligations and the exchange of certain notes. |
Φ | Step coupon bond. Coupon increases or decreases periodically based on a predetermined schedule. Stated rate in effect at May 31, 2013. |
@ | Illiquid security. At May 31, 2013, the aggregate value of illiquid securities was $0, which represented 0.00% of the Funds net assets. See Note 8 in Notes to financial statements. |
^ | Zero Coupon Security. The rate shown is the yield at the time of purchase. |
« | 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, 2013. |
Δ | Securities have been classified by country of origin. |
≠ | The rate shown is the effective yield at the time of purchase. |
** | See Note 7 in Notes to financial statements for additional information on securities lending collateral and non-cash collateral. |
© | Includes $14,563,845 of securities loaned. |
« | Includes foreign currency valued at $5,937 with a cost of $6,634. |
The following foreign currency exchange contracts were outstanding at May 31, 2013:1
Unrealized | |||||||||||||||
Contracts to | Settlement | Appreciation | |||||||||||||
Counterparty | Receive (Deliver) | In Exchange For | Date | (Depreciation) | |||||||||||
MNB | GBP | (4,976 | ) | USD | 7,534 | 6/3/13 | $ | (27 | ) | ||||||
MNB | GBP | (1,431 | ) | USD | 2,163 | 6/4/13 | (11 | ) | |||||||
MNB | GBP | (8,674 | ) | USD | 13,215 | 6/5/13 | 35 | ||||||||
MNB | JPY | (16,413,649 | ) | USD | 161,902 | 6/3/13 | (1,558 | ) | |||||||
MNB | JPY | (17,520,863 | ) | USD | 172,178 | 6/4/13 | (2,309 | ) | |||||||
MNB | SGD | (1,013 | ) | USD | 799 | 6/3/13 | (2 | ) | |||||||
$ | (3,872 | ) |
The use of foreign currency exchange contracts involves elements of market risk and risks in excess of the amounts disclosed in the financial statements. The foreign currency exchange contracts presented above represent the Funds total exposure in such contracts, whereas only the net unrealized appreciation (depreciation) is reflected in the Funds net assets.
1See Note 6 in Notes to financial statements.
Summary of
Abbreviations:
ADR American Depositary
Receipt
ARM Adjustable Rate Mortgage
BRL Brazilian Real
FDR
Fiduciary Deposit Receipt
GBP British Pound Sterling
GNMA Government National Mortgage Association
JPY
Japanese Yen
MASTR Mortgage Asset Securitization Transactions, Inc.
MNB
Mellon National Bank
MXN Mexican Peso
PIK Pay-in-kind
PLN
Polish Zloty
REIT Real Estate Investment Trust
REMIC Real Estate
Mortgage Investment Conduit
S.F. Single Family
SGD Singapore
Dollar
TBA To be announced
USD United States Dollar
yr
Year
See accompanying notes, which are an integral part of the financial statements.
16
Statement of operations
Delaware Enhanced Global Dividend and
Income Fund
Six Months Ended May 31, 2013
(Unaudited)
Investment Income: | ||||||||
Interest | $ | 4,303,929 | ||||||
Dividends | 2,604,035 | |||||||
Securities lending income | 64,939 | |||||||
Foreign tax withheld | (169,649 | ) | $ | 6,803,254 | ||||
Expenses: | ||||||||
Management fees | 1,269,514 | |||||||
Reports to shareholders | 84,947 | |||||||
Accounting and administration expenses | 51,796 | |||||||
Dividend disbursing and transfer agent fees and expenses | 35,376 | |||||||
Legal fees | 26,844 | |||||||
Custodian fees | 24,039 | |||||||
Audit and tax | 11,165 | |||||||
Pricing fees | 9,119 | |||||||
NYSE fees | 8,271 | |||||||
Dues and services | 6,156 | |||||||
Trustees fees | 5,031 | |||||||
Insurance fees | 1,835 | |||||||
Consulting fees | 1,037 | |||||||
Leverage expenses | 1,006 | |||||||
Registration fees | 769 | |||||||
Trustees expenses | 346 | |||||||
Total operating expenses (before interest expense) | 1,537,251 | |||||||
Interest expense | 376,446 | |||||||
Total operating expenses (after interest expense) | 1,913,697 | |||||||
Net Investment Income | 4,889,557 | |||||||
Net Realized and Unrealized Gain (Loss): | ||||||||
Net realized gain (loss) on: | ||||||||
Investments | 6,796,411 | |||||||
Foreign currencies | (155,462 | ) | ||||||
Foreign currency exchange contracts | (13,607 | ) | ||||||
Options written | 135,957 | |||||||
Swap contracts | (4,572 | ) | ||||||
Net realized gain | 6,758,727 | |||||||
Net change in unrealized appreciation (depreciation) of: | ||||||||
Investments | 11,129,696 | |||||||
Foreign currencies | 71,136 | |||||||
Foreign currency exchange contracts | (3,093 | ) | ||||||
Net change in unrealized appreciation (depreciation) | 11,197,739 | |||||||
Net Realized and Unrealized Gain | 17,956,466 | |||||||
Net Increase in Net Assets Resulting from Operations | $ | 22,846,023 |
See accompanying notes, which are an integral part of the financial statements.
17
Statements of changes in net assets
Delaware Enhanced Global Dividend and Income Fund
Six Months | Year | |||||||
Ended | Ended | |||||||
5/31/13 | 11/30/12 | |||||||
(Unaudited) | ||||||||
Increase in Net Assets from Operations: | ||||||||
Net investment income | $ | 4,889,557 | $ | 8,814,467 | ||||
Net realized gain | 6,758,727 | 448,599 | ||||||
Net change in unrealized appreciation (depreciation) | 11,197,739 | 19,380,386 | ||||||
Net increase in net assets resulting from operations | 22,846,023 | 28,643,452 | ||||||
Dividends and Distributions to Shareholders from: | ||||||||
Net investment income | (7,138,627 | ) | (9,927,316 | ) | ||||
Return of capital | | (8,242,639 | ) | |||||
(7,138,627 | ) | (18,169,955 | ) | |||||
Capital Share Transactions: | ||||||||
Cost of shares reinvested1 | | 714,620 | ||||||
Increase in net assets derived from capital share transactions | | 714,620 | ||||||
Net Increase in Net Assets | 15,707,396 | 11,188,117 | ||||||
Net Assets: | ||||||||
Beginning of period | 190,602,477 | 179,414,360 | ||||||
End of period (including distributions in excess of net investment income of $3,481,021 | ||||||||
and $1,231,951, respectively) | $ | 206,309,873 | $ | 190,602,477 |
18
Statement of cash flows
Delaware Enhanced Global Dividend and
Income Fund
Six Months Ended May 31, 2013
(Unaudited)
Net Cash (Including Foreign Currency) Provided by (Used For) Operating Activities: | ||||
Net increase in net assets resulting from operations | $ | 22,846,023 | ||
Adjustments to reconcile net increase in net assets from | ||||
operations to cash provided by operating activities: | ||||
Amortization of premium and discount on investments purchased | (29,237 | ) | ||
Purchase of investment securities | (74,257,377 | ) | ||
Proceeds from disposition of investment securities | 86,617,205 | |||
Proceeds of short-term investment securities, net | (6,579,493 | ) | ||
Premiums received for options written | 163,972 | |||
Premiums paid to close options written | (28,015 | ) | ||
Net realized gain | (6,861,201 | ) | ||
Net change in net unrealized appreciation (depreciation) | (11,197,739 | ) | ||
Increase in receivable for investments sold | (971,791 | ) | ||
Decrease in interest and dividends receivable | 21,429 | |||
Decrease in payable for investments purchased | (2,144,595 | ) | ||
Decrease in interest expense payable | (169,433 | ) | ||
Increase in accrued expenses and other liabilities | 27,945 | |||
Total adjustments | (15,408,330 | ) | ||
Net cash provided by operating activities | 7,437,693 | |||
Cash Flows Used for Financing Activities: | ||||
Cash dividends and distributions paid | (7,138,627 | ) | ||
Net cash used for financing activities | (7,138,627 | ) | ||
Effect of exchange rates on cash | (5,877 | ) | ||
Net increase in cash | 293,189 | |||
Cash at beginning of period | (732,039 | ) | ||
Cash at end of period | $ | (438,850 | ) | |
Cash paid for interest expense for leverage | $ | 545,879 |
See accompanying notes, which are an integral part of the financial statements.
19
Financial highlights
Delaware Enhanced Global Dividend and Income Fund
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six Months | |||||||||||||||||||||
Ended | Year Ended | ||||||||||||||||||||
5/31/131 | 11/30/12 | 11/30/11 | 11/30/10 | 11/30/09 | 11/30/08 | ||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Net asset value, beginning of period | $12.020 | $11.350 | $12.320 | $12.060 | $8.770 | $17.640 | |||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment income2 | 0.308 | 0.557 | 0.587 | 0.568 | 0.685 | 0.769 | |||||||||||||||
Net realized and unrealized gain (loss) | 1.132 | 1.261 | (0.327 | ) | 0.922 | 3.875 | (7.935 | ) | |||||||||||||
Total from investment operations | 1.440 | 1.818 | 0.260 | 1.490 | 4.560 | (7.166 | ) | ||||||||||||||
Less dividends and distributions from: | |||||||||||||||||||||
Net investment income | (0.450 | ) | (0.627 | ) | (0.750 | ) | (0.918 | ) | (0.668 | ) | (0.644 | ) | |||||||||
Return of capital | | (0.521 | ) | (0.480 | ) | (0.312 | ) | (0.602 | ) | (1.060 | ) | ||||||||||
Total dividends and distributions | (0.450 | ) | (1.148 | ) | (1.230 | ) | (1.230 | ) | (1.270 | ) | (1.704 | ) | |||||||||
Net asset value, end of period | $13.010 | $12.020 | $11.350 | $12.320 | $12.060 | $8.770 | |||||||||||||||
Market value, end of period | $12.370 | $11.100 | $10.920 | $12.310 | $12.290 | $6.080 | |||||||||||||||
Total return based on:3 | |||||||||||||||||||||
Net asset value | 12.32% | 16.85% | 1.77% | 13.13% | 59.12% | (42.25% | ) | ||||||||||||||
Market value | 15.65% | 12.15% | (2.01% | ) | 10.92% | 134.96% | (54.14% | ) | |||||||||||||
Ratios and supplemental data: | |||||||||||||||||||||
Net assets, end of period (000 omitted) | $206,310 | $190,602 | $179,414 | $160,465 | $156,048 | $113,400 | |||||||||||||||
Ratio of expenses to average net assets | 1.90% | 2.15% | 1.98% | 1.95% | 2.14% | 1.66% | |||||||||||||||
Ratio of expenses to adjusted average net assets (before interest expense)4 | 1.15% | 1.19% | 1.28% | 1.22% | 1.26% | 1.24% | |||||||||||||||
Ratio of interest expense to adjusted average net assets4 | 0.28% | 0.42% | 0.31% | 0.33% | 0.35% | 0.29% | |||||||||||||||
Ratio of net investment income to average net assets | 4.85% | 4.74% | 4.68% | 4.68% | 6.73% | 5.33% | |||||||||||||||
Ratio of net investment income to adjusted average net assets4 | 3.66% | 3.57% | 3.76% | 3.73% | 5.06% | 4.91% | |||||||||||||||
Portfolio turnover | 29% | 53% | 72% | 83% | 88% | 97% | |||||||||||||||
Leverage Analysis: | |||||||||||||||||||||
Debt outstanding at end of period at par (000 omitted) | $65,725 | $65,725 | $50,725 | $40,000 | $40,000 | $40,000 | |||||||||||||||
Asset coverage per $1,000 of debt outstanding at end of period | $4,139 | $3,900 | $4,537 | $5,012 | $4,901 | $3,835 |
See accompanying notes, which are an integral part of the financial statements.
20
Notes to financial statements
Delaware Enhanced Global Dividend and
Income Fund
May 31, 2013
(Unaudited)
Delaware Enhanced Global Dividend and Income Fund (Fund) is organized as a Delaware statutory trust and is a diversified closed-end management investment company under the Investment Company Act of 1940, as amended. The Funds shares trade on the New York Stock Exchange (NYSE) under the symbol DEX.
The primary investment objective of the Fund is to seek current income, with a secondary objective of capital appreciation.
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 and Exchange-Traded Funds (ETFs), 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 or ETF does not trade, then the mean between the bid and ask prices will be used, which approximates fair value. Securities listed on a foreign exchange are normally valued at the last quoted sales price on the valuation date. U.S. government and agency securities are valued at the mean between the bid and ask prices, which approximates fair value. Debt securities and credit default swap (CDS) contracts are valued based upon valuations provided by an independent pricing service or broker/counterparty and reviewed by management. 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. Valuations for fixed income securities utilize matrix systems, which reflect such factors as security prices, yields, maturities, and ratings, and are supplemented by dealer and exchange quotations. Swaps prices are derived using daily swap curves and models that incorporate a number of market data factors, such as discounted cash flows, trades and values of the underlying reference instruments. Investment company securities are valued at net asset value per share, as reported by the underlying investment company. Open-end investments companies are valued at their published net asset value. Foreign currency exchange contracts and forward foreign cross currency exchange contracts are valued at the mean between the bid and ask prices, which approximates fair value. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available. Exchange-traded options are valued at the last reported sale price or, if no sales are reported, at the mean between the last reported bid and ask prices, which approximates fair value. 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 Funds Board of Trustees (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, generally as of 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 & Foreign Income Taxes No provision for federal income taxes has been made as the Fund intends to continue to qualify for federal income tax purposes as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, and make the requisite distributions to shareholders. The Fund evaluates tax positions taken or expected to be taken in the course of preparing the Funds tax returns to determine whether the tax positions are more-likely-than-not of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. Management has analyzed the Funds tax positions taken for all open federal income tax years (Nov. 30, 2009 Nov. 30, 2012), and has concluded that no provision for federal income tax is required in the Funds financial statements. In regard to foreign taxes only, the Fund has open tax years in certain foreign countries it invests in that may date back to the inception of the Fund.
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
Notes to financial statements
Delaware Enhanced Global Dividend and Income Fund
1. Significant Accounting Policies (continued)
part, by the Funds 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. Under the Regulated Investment Company Modernization Act of 2010 (Act), this tax effect attributable to the Funds capital loss carryovers (the conversion of returns of capital into distributions taxable as ordinary income) will no longer apply to net capital losses of the Fund arising in Fund tax years beginning after Nov. 30, 2012. The actual determination of the source of the Funds distributions can be made only at year end.
Repurchase Agreements The Fund may purchase certain U.S. government securities subject to the counterpartys agreement to repurchase them at an agreed upon date and price. The counterparty will be required on a daily basis to maintain the value of the collateral subject to the agreement at not less than the repurchase price (including accrued interest). The agreements are conditioned upon the collateral being deposited under the Federal Reserve book-entry system with the Funds custodian or a third-party sub-custodian. In the event of default or bankruptcy by the other party to the agreement, retention of the collateral may be subject to legal proceedings. All open repurchase agreements as of the date of this report were entered into on May 31, 2013.
To Be Announced Trades The Fund may contract to purchase securities for a fixed price at a transaction date beyond the customary settlement period (e.g, when issued, delayed delivery, forward commitment, or TBA transactions) consistent with the Funds ability to manage its investment portfolio and meet redemption requests. These transactions involve a commitment by the Fund to purchase securities for a predetermined price or yield with payment and delivery taking place more than three days in the future, or after a period longer than the customary settlement period for that type of security. No interest will be earned by the Fund on such purchases until the securities are delivered; however, the market value may change prior to delivery.
Foreign Currency Transactions Transactions denominated in foreign currencies are recorded at the prevailing exchange rates on the valuation date in accordance with the Funds prospectus. The value of all assets and liabilities denominated in foreign currencies is translated daily into U.S. dollars at the exchange rate of such currencies against the U.S. dollar. 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 generally bifurcates that portion of realized gains and losses on investments in debt securities, which is due to changes in foreign exchange rates from that which is due to changes in market prices of debt securities. That portion of gains (losses) is included in the statement of operations under the caption net realized gain (loss) on foreign currencies. For foreign equity securities, these changes are included in net realized and unrealized gain or loss 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 fair value of investments, reported amounts of assets and liabilities and disclosure of contingent 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 and the differences could be material.
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 among 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 debt securities are amortized to interest income over the lives of the respective securities using the effective interest method. Realized gains (losses) on paydowns of asset- and mortgage-backed securities are classified as interest income. Distributions received from investments in Real Estate Investment Trusts (REITs) are recorded as dividend income on the ex-dividend date, subject to reclassification upon notice of the character of such distributions by the issuer. Foreign dividends are also recorded on the ex-dividend date or as soon after the ex-dividend
22
date that the Fund is aware of such dividends, net of all tax withholdings, a portion of which may be reclaimable. Withholding taxes and reclaims on foreign dividends have been recorded in accordance with the Funds understanding of the applicable countrys tax rules and rates.
The Fund may receive 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, 2013.
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 0.95%, of the adjusted average daily net assets of the Fund. For purposes of the calculation of investment management fees, adjusted average daily 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 excluding the line of credit liability 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, 2013, the Fund was charged $6,474 for these services.
At May 31, 2013, the Fund had liabilities payable to affiliates as follows:
Investment management fees payable to DMC | $ | 223,883 | |
Fees and expenses payable to DSC | 1,137 | ||
Other expenses payable to DMC and affiliates* | 3,940 |
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, 2013, the Fund was charged $14,478 for internal legal and tax services provided by DMC and/or its affiliates employees.
Trustees fees include expenses accrued by the Fund for each Trustees retainer and meeting fees. Certain officers of DMC and DSC are officers and/or Trustees of the Fund. These officers and Trustees are paid no compensation by the Fund.
3. Investments
For six months ended May 31, 2013, the Fund made purchases of $70,130,072 and sales of $82,597,756 of investment securities other than U.S. government securities and short-term investments. For the six months ended May 31, 2013, the Fund made purchases of $4,127,305 and sales of $4,019,449 of long-term U.S. government securities.
At May 31, 2013, 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, 2013, the cost of investments was $262,060,159. At May 31, 2013, net unrealized appreciation was $22,441,780 of which $33,938,629 related to unrealized appreciation of investments and $11,496,849 related to unrealized depreciation of investments.
For federal income tax purposes, capital loss carryforwards may be carried forward and applied against future capital gains. Capital loss carryforwards remaining at Nov. 30, 2012 will expire as follows: $3,221,272 expires in 2015, $33,984,198 expires in 2016 and $22,248,222 expires in 2017.
On Dec. 22, 2010, the Act was enacted, which changed various technical rules governing the tax treatment of regulated investment companies. The changes were generally effective for taxable years beginning after the date of enactment. Under the Act, the Fund is permitted to carry forward capital losses incurred in taxable years beginning after the date of enactment for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years, which carry an expiration date. As a result of this
Notes to financial statements
Delaware Enhanced Global
Dividend and Income Fund
3. Investments (continued)
ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses rather than being considered all short-term as permitted under previous regulation.
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 entitys 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 Funds 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 for identical investments (e.g., equity securities, open-end investment companies, futures contracts, exchange-traded options contracts) |
Level 2 | | other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) (e.g., debt securities, government securities, swap contracts, foreign currency exchange contracts, foreign securities utilizing international fair value pricing, broker-quoted securities, fair valued securities) |
Level 3 | | inputs are significant unobservable inputs (including the Funds own assumptions used to determine the fair value of investments) (e.g., broker-quoted securities, fair valued securities) |
Level 3 investments are valued using significant unobservable inputs. The Fund may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Valuations may also be based upon current market prices of securities that are comparable in coupon, rating, maturity and industry. The derived value of a Level 3 investment may not represent the value which is received upon disposition and this could impact the results of operations.
The following table summarizes the valuation of the Funds investments by fair value hierarchy levels as of May 31, 2013:
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Agency, Asset- & Mortgage-Backed Securities | $ | | $ | 2,105,123 | $ | $ | 2,105,123 | ||||||||
Common Stock | 61,829,594 | 63,984,382 | | 125,813,976 | |||||||||||
Convertible Preferred Stock | 2,355,638 | 2,615,134 | | 4,970,772 | |||||||||||
Corporate Debt | | 111,503,529 | | 111,503,529 | |||||||||||
Foreign Debt | | 8,538,554 | | 8,538,554 | |||||||||||
Exchange-Traded Fund | 479,500 | | | 479,500 | |||||||||||
U.S. Treasury Obligations | | 945,375 | | 945,375 | |||||||||||
Other | 1,596,768 | 790,263 | | 2,387,031 | |||||||||||
Short-Term Investments | | 13,280,711 | | 13,280,711 | |||||||||||
Securities Lending Collateral | | 14,477,368 | | 14,477,368 | |||||||||||
Total | $ | 66,261,500 | $ | 218,240,439 | $ | $ | 284,501,939 | ||||||||
Foreign Currency Exchange Contracts | $ | | $ | (3,872 | ) | $ | $ | (3,872 | ) |
24
Security type is valued across multiple levels. The amount attributed to level 1 securities and level 2 securities represents the following percentages of the total market value of this security type for the Fund.
Level 1 | Level 2 | Total | |||||||||
Common Stock | 49 | % | 51 | % | 100% | ||||||
Convertible Preferred Stock | 47 | % | 53 | % | 100% | ||||||
Other | 67 | % | 33 | % | 100% |
The securities that have been deemed worthless on the statement of net assets are considered to be Level 3 securities in this table.
As a result of utilizing international fair value pricing at May 31, 2013, a portion of the Fund was categorized as Level 2.
During the six months ended May 31, 2013, there were no transfers between Level 1 investments, Level 2 investments or Level 3 investments that had a significant impact to the Fund. This does not include transfers between Level 1 investments and Level 2 investments due to the Fund utilizing international fair value pricing during the period. In accordance with the fair valuation procedures described in Note 1, international fair value pricing uses other observable market-based inputs in place of the closing exchange price due to the events occurring after the close of the exchange or market on which the investment is principally traded causing a change in classification between levels. The Funds policy is to recognize transfers between levels at the beginning of the reporting period.
A reconciliation of Level 3 investments is presented when the Fund has a significant amount of Level 3 investments at the beginning, interim or end of the period in relation to the Funds net assets. Management has determined not to provide additional disclosure on Level 3 inputs under ASU No. 2011-04 since the Level 3 investments are not considered significant to the Funds net assets at the end of the period.
4. Capital Stock
Shares obtained under the Funds dividend reinvestment plan are purchased by the Funds transfer agent, Computershare Shareowner Services LLC (Computershare), in the open market if the shares of the Fund are trading at a discount to the Funds net asset value on the dividend payment date. However, the dividend reinvestment plan provides that if the shares of the Fund are trading at a premium to the Funds net asset value on the dividend payment date, the Fund will issue shares to shareholders of record at net asset value. During the six months ended May 31, 2013, the Fund did not issue any shares under the reinvestment plan. During the year ended Nov. 30, 2012, the Fund issued 60,489 shares for $714,620 under the Funds dividend reinvestment plan because the Fund was trading at a premium to net asset value on the respective dividend payment dates.
5. Line of Credit
For the six months ended May 31, 2013, the Fund borrowed money pursuant to a $67,000,000 Credit Agreement with The Bank of New York Mellon (BNY Mellon) that expired on June 26, 2013, but was renewed through June 25, 2014. 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, 2013, the par value of loans outstanding was $65,725,000, at a variable interest rate of 1.08%. During the six months ended May 31, 2013, the average daily balance of loans outstanding was $65,725,000 at a weighted average interest rate of approximately 1.13%.
Interest on borrowings is based on a variable short-term rate plus an applicable margin. The commitment fee under the Credit Agreement is computed at a rate of 0.20% per annum on the unused balance and is reflected in leverage expenses on the statement of operations. The loan is collateralized by the Funds portfolio.
6. Derivatives
U.S. GAAP requires 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 entitys results of operations and financial position.
(continues) 25
Notes to financial statements
Delaware Enhanced Global Dividend and Income Fund
6. Derivatives (continued)
Foreign Currency Exchange Contracts The Fund may enter into foreign currency exchange contracts and forward foreign cross currency exchange contracts as a way of managing foreign exchange rate risk. The Fund may enter into these contracts to fix the U.S. dollar value of a security that it has agreed to buy or sell for the period between the date the trade was entered into and the date the security is delivered and paid for. The Fund may also use these contracts to hedge the U.S. dollar value of securities it already owns that are denominated in foreign currencies. The change in value is recorded as an unrealized gain or loss. When the contract is closed, a realized gain or loss is recorded equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.
The use of foreign currency exchange contracts and forward foreign cross currency exchange contracts does not eliminate fluctuations in the underlying prices of the securities, but does establish a rate of exchange that can be achieved in the future. Although foreign currency exchange contracts and forward foreign cross currency exchange contracts limit the risk of loss due to an unfavorable change in the value of the hedged currency, they also limit any potential gain that might result should the value of the currency change favorably. 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 Funds 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 Funds exposure to the counterparty.
Options Contracts During the six months ended May 31, 2013, the Fund entered into options contracts in the normal course of pursuing its investment objective. The Fund may buy or write options contracts for any number of reasons, including without limitation: to manage the Funds exposure to changes in securities prices and foreign currencies; to earn income; as an efficient means of adjusting the Funds overall exposure to certain markets; to protect the value of portfolio securities; and as a cash management tool. The Fund may buy or write call or put options on securities, futures, swaps swaptions, financial indices, and foreign currencies. When the Fund buys an option, a premium is paid and an asset is recorded and adjusted on a daily basis to reflect the current market value of the options purchased. When the Fund writes an option, a premium is received and a liability is recorded and adjusted on a daily basis to reflect the current market value of the options written. Premiums received from writing options that expire unexercised are treated by the Fund on the expiration date as realized gains. The difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is treated as realized gain or loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security in determining whether the Fund has a realized gain or loss. If a put option is exercised, the premium reduces the cost basis of the securities purchased by the Fund. The Fund, as writer of an option, bears the market risk of an unfavorable change in the price of the security underlying the written option. When writing options, the Fund is subject to minimal counterparty risk because the counterparty is only obligated to pay premiums and does not bear the market risk of an unfavorable market change.
Transactions in options written during the six months ended May 31, 2013 for the Fund were as follows:
Number of | ||||||||
Contracts | Premiums | |||||||
Options outstanding at Nov. 30, 2012 | | $ | | |||||
Options written | 1,010 | 163,972 | ||||||
Options exercised | (205 | ) | (28,015 | ) | ||||
Options expired | (805 | ) | (135,957 | ) | ||||
Options outstanding at May 31, 2013 | | $ | |
Swap Contracts The Fund enters into CDS contracts in the normal course of pursuing its investment objective. 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 The Fund will not be permitted to enter into swap transactions, unless, at the time of entering into such transaction the unsecured long-term debt of the actual counterparty combined with any credit enhancements, is rated at least BBB- by S&P or Baa3 by Moodys or is determined to be of equivalent quality by the manager.
26
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, 2013, the Fund entered into CDS contracts as a purchaser of protection. Periodic payments on such contracts are accrued daily and recorded as unrealized losses (gains) on swap contracts. Upon payment, 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. For the six months ended May 31, 2013, the Fund did not enter into CDS contracts as a seller of protection.
CDS contracts may involve greater risks than if the Fund had invested in the reference obligation directly. CDS contracts are subject to general market risk, liquidity risk, counterparty risk and credit risk. The Funds 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 Funds exposure to the counterparty for trades entered prior to June 10, 2013, and trading these instruments through a central counterparty for trades entered on or after June 10, 2013.
Swaps Generally. 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 shown on the statement of net assets. No swap contracts were outstanding at May 31, 2013.
See the statement of operations on page 17 for the realized and unrealized gain or loss on derivatives.
Derivatives Generally. The table below summarizes the average balance of derivative holdings by the Fund during the period ended May 31, 2013.
Long | Short | ||||
Derivative | Derivative | ||||
Volume | Volume | ||||
Foreign currency exchange contracts (average cost) | USD | 172,327 | USD | 202,424 | |
Options contracts (average notional value) | | 7,141 | |||
Swap contracts (average notional value)* | EUR | 21,815 | |
*Long represents buying protection and short represents selling protection.
7. 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. At the time a security is loaned, the borrower must post collateral equal to the required percentage of the market value of the loaned security, including any accrued interest. The required percentage is: (i) 102% with respect to U.S. securities and foreign securities that are denominated and payable in U.S. dollars; and (ii) 105% with respect to foreign securities. With respect to each loan, if on any business day the aggregate market value of securities collateral plus cash collateral held is less than the aggregate market value of
(continues) 27
Notes to financial statements
Delaware Enhanced Global Dividend and Income Fund
7. Securities Lending (continued)
the securities which are the subject of such loan, the borrower will be notified to provide additional collateral by the end of the following business day which, together with the collateral already held, will be not less than the applicable initial collateral requirements for such security loan. If the aggregate market value of securities collateral and cash collateral held with respect to a security loan exceeds the applicable initial collateral requirement, upon the request of the borrower, BNY Mellon must return enough collateral to the borrower by the end of the following business day to reduce the value of the remaining collateral to the applicable initial collateral requirement for such security loan. As a result of the foregoing, the value of the collateral held with respect to a loaned security may be temporarily more or less than the value of the security on loan.
Cash collateral received is generally invested in the Delaware Investments Collateral Fund No. 1 (Collective Trust) established by BNY Mellon for the purpose of investment on behalf of funds managed by DMC that participate in BNY Mellons securities lending program. The Collective Trust may invest in U.S. government securities and high quality corporate debt, asset-backed and other money market securities and in repurchase agreements collateralized by such securities, provided that the Collective Trust will generally have a dollar-weighted average portfolio maturity of 60 days or less. In Oct. 2008, BNY Mellon transferred certain distressed securities from the Funds previous collateral investment pool 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 changes 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.
The Collective Trust used for the investment of cash collateral received from borrowers of securities seeks to maintain a net asset value per unit of $1.00, but there can be no assurance that it will always be able to do so. The Fund may incur investment losses as a result of investing securities lending collateral in the Collective Trust or another collateral investment pool. This could occur if an investment in a collateral investment pool defaulted or if it were necessary to liquidate assets in the collateral investment pool to meet returns on outstanding security loans at a time when the collateral investment pools net asset value per unit was less than $1.00. Under those circumstances, the Fund may not receive an amount from the collateral investment pool 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.
At May 31, 2013, the value of securities on loan was $14,563,845, for which the Fund received collateral, comprised of non-cash collateral valued at $478,845 and cash collateral of $14,756,041. At May 31, 2013, the value of invested collateral was $14,477,368. These investments are presented on the statement of net assets under the caption Securities Lending Collateral.
8. Credit and Market Risk
The Fund borrows through its line of credit for purposes of leveraging. Leveraging may result in higher degrees of volatility because the Funds 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 countrys balance of payments or for other reasons, a country may impose temporary restrictions on foreign capital remittances abroad.
28
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 securities listed on the major securities exchanges in emerging markets is held by a smaller number of investors. This may limit the number of shares available for acquisition or disposition by the Fund.
The Fund invests in high yield fixed income securities, which are securities rated BB or lower by Standard & Poors and Ba or lower by Moodys Investors Service, or similarly rated by another nationally recognized statistical rating organization. Investments in these higher yielding securities are generally accompanied by a greater degree of credit risk than higher rated securities. Additionally, lower rated securities may be more susceptible to adverse economic and competitive industry conditions than investment-grade securities.
The Fund invests in certain obligations held by the Fund that may have liquidity protection to ensure that the receipt of payments due on the underlying security is timely. Such protection may be provided through guarantees, insurance policies or letter of credit obtained by the issuer or sponsor through third parties, through various means of structuring the transaction or through a combination of such approaches. The Fund will not pay any additional fees for such credit support, although the existence of credit support may increase the price of a security.
The Fund invests in fixed income securities whose value is derived from an underlying pool of mortgages or consumer loans. The value of these securities is sensitive to changes in economic conditions, including delinquencies and/or defaults, and may be adversely affected by shifts in the markets perception of the issuers and changes in interest rates. Investors receive principal and interest payments as the underlying mortgages and consumer loans are paid back. Some of these securities are collateralized mortgage obligations (CMOs). CMOs are debt securities issued by U.S. government agencies or by financial institutions and other mortgage lenders, which are collateralized by a pool of mortgages held under an indenture. Prepayment of mortgages may shorten the stated maturity of the obligations and can result in a loss of premium, if any has been paid. Certain of these securities may be stripped (securities which provide only the principal or interest feature of the underlying security). The yield to maturity on an interest-only CMO is extremely sensitive not only to changes in prevailing interest rates, but also to the rate of principal payments (including prepayments) on the related underlying mortgage assets. A rapid rate of principal payments may have a material adverse effect on the Funds yield to maturity. If the underlying mortgage assets experience greater than anticipated prepayments of principal, the Fund may fail to fully recoup its initial investment in these securities even if the securities are rated in the highest rating categories.
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, 2013. The Funds REIT holdings are also affected by interest rate changes, particularly if the REITs it holds use floating rate debt to finance their ongoing operations.
The Fund may invest up to 10% of its net assets in illiquid securities, which may include securities with contractual restrictions on resale, securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and other securities which may not be readily marketable. The relative illiquidity of these securities may impair the Fund from disposing of them in a timely manner and at a fair price when it is necessary or desirable to do so. While maintaining oversight, the Funds Board has delegated to DMC, the day-to-day functions of determining whether individual securities are liquid for purposes of the Funds limitation on investments in illiquid securities. Securities eligible for resale pursuant to Rule 144A, which are determined to be liquid, are not subject to the 10% limit on investments in illiquid securities. Rule 144A and illiquid securities have been identified on the statement of net assets.
9. Contractual Obligations
The Fund enters into contracts in the normal course of business that contain a variety of indemnifications. The Funds 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 Funds existing contracts and expects the risk of loss to be remote.
10. Subsequent Events
Management has determined that no material events or transactions occurred subsequent to May 31, 2013 that would require recognition or disclosure in the Funds financial statements.
29
Other Fund information
(Unaudited)
Delaware Enhanced Global Dividend and Income Fund
Changes to portfolio management team
Paul A. Matlack, Craig C. Dembek, and John P. McCarthy were appointed co-portfolio managers of the Fund on December 4, 2012. Messrs. Matlack, Dembek, and McCarthy joined Babak Bob Zenouzi, Damon J. Andres, Wayne A. Anglace, Liu-Er Chen, Thomas H. Chow, Roger A. Early, Edward A. Ned Gray, and D. Tysen Nutt in making day-to-day decisions for the Fund.
On December 4, 2012, the Fund announced that Kevin P. Loome would no longer serve as a co-portfolio manager of the Fund.
Fund management
Babak Bob Zenouzi
Senior Vice President, Chief Investment Officer Real Estate
Securities and Income Solutions (RESIS)
Bob Zenouzi is the lead manager for the real estate securities and income solutions (RESIS) group 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 firms global REIT product. Additionally, he serves as lead portfolio manager for the firms Dividend Income products, which he helped to create in the 1990s. He is also a member of the firms 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 Chartwells 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 masters degree in finance from Boston College and a bachelors 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 the firms real estate securities and income solutions (RESIS) group. He also serves as a portfolio manager for the firms Dividend Income products. From 1991 to 1994, he performed investment-consulting services as a consulting associate with Cambridge Associates. Andres earned a bachelors degree in business administration with an emphasis in finance and accounting from the University of Richmond.
Wayne A. Anglace, CFA
Vice President, Senior Portfolio Manager
Wayne A. Anglace currently serves as a senior portfolio manager for the firms convertible bond strategies. 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 bachelors degree in civil engineering from Villanova University and an MBA with a concentration in finance from Saint Josephs University, and he is a member of the CFA Society of Philadelphia.
30
Liu-Er Chen, CFA
Senior Vice President, Chief Investment Officer Emerging
Markets and Healthcare
Liu-Er Chen heads the firms global Emerging Markets team, and he is also the portfolio manager for Delaware Healthcare Fund, which launched in September 2007. Prior to joining Delaware Investments in September 2006 in his current position, he spent nearly 11 years at Evergreen Investment Management Company, where he most recently worked as managing director and senior portfolio manager. He co-managed the Evergreen Emerging Markets Growth Fund from 1999 to 2001, and became the Funds sole manager in 2001. He was also the sole manager of the Evergreen Health Care Fund since its inception in 1999. Chen began his career at Evergreen in 1995 as an analyst covering Asian and global healthcare stocks, before being promoted to portfolio manager in 1998. Prior to his career in asset management, Chen worked for three years in sales, marketing, and business development for major American and European pharmaceutical and medical device companies. He is licensed to practice medicine in China and has experience in medical research at both the Chinese Academy of Sciences and Cornell Medical School. He holds an MBA with a concentration in management from Columbia Business School.
Thomas H. Chow, CFA
Senior Vice President, Senior Portfolio Manager
Thomas H. Chow is a member of the firms taxable fixed income portfolio management team, with primary responsibility for portfolio construction and strategic asset allocation in 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 including high yield mutual funds and strategies. 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 high yield 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 bachelors degree in business analysis from Indiana University, and he is a Fellow of Life Management Institute.
Craig C. Dembek, CFA
Senior Vice President, Co-Head of Credit Research, Senior
Research Analyst
Craig C. Dembek is a senior research analyst on the firms taxable fixed income team with primary responsibility for banks, brokers, insurance companies, and real estate investment trusts (REITs), as well as oversight for other sectors. He rejoined the firm in March 2007. During his previous time at Delaware Investments, from April 1999 to January 2001, he was a senior investment grade credit analyst. Most recently, he spent four years at Chartwell Investment Partners as a senior fixed income analyst and Turner Investment Partners as a senior fixed income analyst and portfolio manager. Dembek also spent two years at Stein, Roe & Farnham as a senior fixed income analyst. Earlier in his career, he worked for two years as a lead bank analyst at the Federal Reserve Bank of Boston. Dembek earned a bachelors degree in finance from Michigan State University and an MBA with a concentration in finance from the University of Vermont.
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 firms 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 was 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 bachelors 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.
(continues) 31
Other Fund information
(Unaudited)
Delaware Enhanced Global Dividend and Income Fund
Fund management (continued)
Edward A. Ned Gray, CFA
Senior Vice President, Chief Investment Officer Global and
International Value Equity
Ned Gray manages the Global and International Value Equity strategies and has worked with the investment team for more than 20 years. Prior to joining Delaware Investments in June 2005 in his current position, Gray worked with the team as a portfolio manager at Arborway Capital and Thomas Weisel Partners. At ValueQuest/TA, which he joined in 1987, Gray was 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 bachelors degree in history from Reed College and a master of arts in law and diplomacy, in international economics, business and law from Tufts Universitys Fletcher School of Law and Diplomacy.
Paul A. Matlack, CFA
Senior Vice President, Senior Portfolio Manager, Fixed Income
Strategist
Paul A. Matlack is a strategist and senior portfolio manager for the firms fixed income team. Matlack rejoined the firm in May 2010. During his previous time at Delaware Investments, from September 1989 to October 2000, he was senior credit analyst, senior portfolio manager, and left the firm as co-head of the high yield group. Most recently, he worked at Chartwell Investment Partners from September 2003 to April 2010 as senior portfolio manager in fixed income, where he managed core, core plus, and high yield strategies. Prior to that, Matlack held senior roles at Turner Investment Partners, PNC Bank, and Mellon Bank. He earned a bachelors degree in international relations from the University of Pennsylvania and an MBA with a concentration in finance from George Washington University.
John P. McCarthy, CFA
Senior Vice President, Co-Head of Credit Research, Senior
Research Analyst
John P. McCarthy is a senior research analyst on the firms taxable fixed income team, responsible for industrials, autos, auto parts, metals, and mining. He rejoined Delaware Investments in March 2007 after he worked in the firms fixed income area from 1990 to 2000 as a senior high yield analyst and high yield trader, and from 2001 to 2002 as a municipal bond trader. Most recently, he was a senior high yield analyst/trader at Chartwell Investment Partners. McCarthy earned a bachelors degree in business administration from Babson College, and he is a member of the CFA Society of Philadelphia.
D. Tysen Nutt Jr.
Senior Vice President, Senior Portfolio Manager, Team
Leader
D. Tysen Nutt Jr. is senior portfolio manager and team leader for the firms Large-Cap Value team. Before joining Delaware Investments in 2004 as senior vice president and senior portfolio manager, 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 bachelors degree from Dartmouth College, and he is a member of the New York Society of Security Analysts and the CFA Institute.
32
About the organization
This semiannual report is for the information of Delaware Enhanced Global Dividend and Income Fund shareholders. The figures in this report represent past results that are not a guarantee of future results. The return and principal value of an investment in the Fund will fluctuate so that shares, when sold, may be worth more or less than their original cost.
Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940 that the Fund may, from time to time, purchase shares of its common stock on the open market at market prices.
Board of
Directors |
Affiliated
officers |
|
Patrick P.
Coyne
Chairman, President, and Chief Executive Officer Delaware Investments® Family of Funds Philadelphia, PA Thomas L. Bennett Joseph W. Chow John A. Fry Anthony D.
Knerr Lucinda S.
Landreth Frances A.
Sevilla-Sacasa Thomas K.
Whitford Janet L. Yeomans J. Richard
Zecher |
David F.
Connor Daniel V.
Geatens
Vice President and Treasurer Delaware Investments Family of Funds Philadelphia, PA David P.
OConnor
Executive 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 Funds Forms N-Q, as well as a description of the policies and procedures that the Fund uses to determine how to vote proxies (if any) relating to portfolio securities are available without charge (i) upon request, by calling 866 437-0252; (ii) on the Funds website at delawareinvestments.com; and (iii) on the SECs website at sec.gov. The Funds Forms N-Q may be reviewed and copied at the SECs Public Reference Room in Washington, DC; 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 Funds website at delawareinvestments.com; and (ii) on the SECs website at 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 Computershare Shareowner Services LLC 480 Washington Blvd. Jersey City, NJ 07310 866 437-0252 Website
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 Enhanced Global Dividend and Income Fund offers an automatic dividend reinvestment program. If you would like to change your reinvestment option, and shares are registered in your name, contact Computershare Shareowner Services LLC at 866 437-0252. 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
33
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 registrants principal executive officer and principal financial officer have evaluated the registrants 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 registrants 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 registrants second fiscal quarter) that have materially affected, or are reasonably likely to materially affect, the registrants 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. |
/s/ PATRICK P. COYNE | |
By: | Patrick P. Coyne |
Title: | Chief Executive Officer |
Date: | August 2, 2013 |
/s/ PATRICK P. COYNE | |
By: | Patrick P. Coyne |
Title: | Chief Executive Officer |
Date: | August 2, 2013 |
/s/ RICHARD SALUS | |
By: | Richard Salus |
Title: | Chief Financial Officer |
Date: | August 2, 2013 |