<PAGE>
OFFICERS AND DIRECTORS
Charles J. Swindells--Chairman
A. John W. Campbell--Director
Edmund J. Cashman, Jr.--Director
Henri Deegenaar--Director
Walter A. Eberstadt--Director
Ian F. H. Grant--Director
Lawrence W. Harris, III--Director
Robert H. C. Van Maasdijk--Director
Wolfgang E. Furst Ysenburg--Director
Peter E. F. Newbald--President
William H. Miller, III--Vice President
Edward A. Taber, III--Vice President
Marie K. Karpinski--Vice President, Secretary
and Treasurer
Andrew Roberts--Assistant Vice President
James N. H. Bennett--Assistant Vice President
Brian J. Pierce--Assistant Vice President
Susan T. Lind--Assistant Secretary
CUSTODIAN AND TRANSFER AGENT
State Street Bank & Trust Company
P.O. Box 1713
Boston, Massachusetts 02105
SUB-CUSTODIAN
The Chase Manhattan Bank, N.A.
1 Chaseside
Bournemouth, Dorset BH7 7DB
England
WORLDWIDE VALUE FUND, INC.
P.O. BOX 1476--10TH FLOOR
7 EAST REDWOOD STREET
BALTIMORE, MD 21203-1476
Printed on Recycled Paper
(Worldwide Value Fund logo)
REPORT TO SHAREHOLDERS
FOR THE SIX MONTHS ENDED
JUNE 30, 1995
LOMBARD ODIER INTERNATIONAL
PORTFOLIO MANAGEMENT LIMITED
INVESTMENT ADVISER
LEGG MASON FUND ADVISER, INC.
INVESTMENT CONSULTANT
AND ADMINISTRATOR
<PAGE>
TO OUR SHAREHOLDERS,
During the second quarter of 1995 Worldwide Value Fund recorded a 7.8%
increase in its net asset value, closing at $19.48 per share at June 30 against
$18.07 at March 31. This performance was slightly better than Lipper Analytical
Service's Global Equity Fund Index, which rose 7.6% in value during the quarter,
but less than Standard & Poor's 500 Stock Index, which rose 9.5% since March 31.
Net investment income for the June quarter was $337,000, or $.11 per share,
against $258,000, or $.09 per share, in the second quarter of 1994. Realized and
unrealized gains for the same period were $3,811,000, or $1.30 per share, in
1995, against losses of ($2,406,000), or ($.80) per share, in 1994.
The Fund's portfolio remains principally invested in Europe. The United
Kingdom represents the largest holding with 31.6% of net assets, followed by
Germany with 13.1%, the Netherlands 12.3%, France 12.0% and Switzerland 11.1%.
We continued the share repurchase program which began during the quarter. At
June 30, 1995, 16,000 shares were repurchased and retired as treasury stock. The
Board of Directors has authorized the repurchase of up to 5% of all outstanding
shares. As the wide discount from net asset value continues, we will take
advantage of this unusual investment opportunity and continue the share
repurchase program.
The Fund's annual meeting of shareholders was held on April 18, 1995. Of the
3,005,000 shares outstanding, the following shares (in thousands) were voted at
the meeting:
<TABLE>
<CAPTION>
For Against Abstain
<S> <C> <C> <C>
Election of nine directors:
A. John W. Campbell 2,070 - 34
Edmund J. Cashman, Jr. 2,070 - 34
Henri Deegenaar 2,070 - 34
Walter A. Eberstadt 2,070 - 34
Ian F. H. Grant 2,070 - 34
Lawrence W. Harris, III 2,070 - 34
Charles J. Swindells 2,070 - 34
Robert H. C. Van Maasdijk 2,070 - 34
Wolfgang E. Furst Ysenburg 2,070 - 34
Ratification of selection of Coopers
& Lybrand L.L.P. as the Fund's independent
accountants for the year ending December 31, 1995 2,082 11 11
</TABLE>
Sincerely,
(signature)
Charles J. Swindells
Chairman of the Board
July 28, 1995
<PAGE>
INVESTMENT ADVISERS' COMMENTS
During the second quarter of 1995 the European equity markets exhibited a
much more encouraging performance. The currency markets were considerably less
volatile, investor sentiment towards equities improved significantly, and the
European index appreciated nearly 6%.
2ND QUARTER 1995
MSCI European Index +5.7%
Worldwide Value Fund NAV +7.8%
In terms of currency developments we had the first show of strength from the
dollar in May, albeit volatile, and a slight weakness in the deutschmark--
continuation of these trends must be monitored closely-but overall currency
markets were relatively steady. The surprise cut in German interest rates caused
the European markets to take heart after initial scepticism when it became
apparent that the Bundesbank moves were in response to poor domestic economic
activity rather than part of a global attempt to support the dollar.
Another Bundesbank rate cut did not materialise, but we are increasingly
seeing evidence of a slowdown, and despite a temporary "blip" in German
inflation figures in June due to the cost of package holiday prices, it is very
possible that during the rest of the year economists may feel obliged to reduce
forecasts for German inflation. On the other hand, inflationary pressures are
quite plainly taking hold in those countries which have devalued, with the
largest increases prevailing in Italy and Spain, though this has largely been
discounted and is no longer upsetting sentiment per se.
Political events have played a large part in the behavior of the markets.
The Presidential election in FRANCE took place near the beginning of May and, as
expected, Chirac won a resounding victory and a new Prime Minister and Finance
Minister were appointed. Although the monetary policy will continue to support
the "Franc-fort," the markets were particularly disappointed with the measures
announced in the Mini Budget, which did little to restrain public spending,
while increasing the burden on corporates by raising the minimum wage, raising
corporate tax "temporarily," and increasing turnover tax.
Political uncertainty hit both the Spanish and UK stockmarkets. In SPAIN,
the regional elections confirmed the loss of popularity for the minority
Socialist government, but a more surprising result was the loss of support for
their allies, the Catalans. The Socialists' credibility was further hit by news
of illegal telephone tapping which resulted in the resignation of both the
Deputy Prime Minister and the Defence Minister. The market performed well on
expectations of a change in government and hopes of an improving budget deficit.
In the UK, the Prime Minister prompted a week of uncertainty when he resigned as
leader of the Conservative party and sparked off enormous speculation over a
serious leadership contest. However the Prime Minister was re-elected with
sufficient party support to head off any other leadership challenge for the
foreseeable future.
The strongest equity markets were in Scandinavia. The NORWEGIAN market
performed well purely on the back of sound economic fundamentals. The budget is
due to be in surplus in the next few years, and as a result bond yields
declined. The SWEDISH and FINNISH markets were strong as a result of stunning
performances of two companies--Ericsson and NOKIA--both of which are in the
technology sector, and which rose in sympathy with the strong performance of
technology stocks in the US. As the quarter progressed, the strength was
justified by excellent profit figures from NOKIA for the first four months, and
significant new contracts for Ericsson in the US.
2
<PAGE>
News from corporate GERMANY continued to testify to the non-competitiveness
of the deutschmark, and the weakness of the lira. Industrial GERMANY is
suffering severely, and several comments earlier in the quarter warning of the
detrimental effect of the strong DM on their margins by companies such as
Daimler, SIEMENS and Hooghovens, were borne out in June when Daimler announced
that it was going to take a loss in 1995--for the first time in its history.
Despite this news, overall the general tone in the markets appears to be
much more relaxed, and it is interesting to note that over the months there have
been several new issues, large and small, which, despite initial scepticism,
have been many times over-subscribed. We take this to mean that the investment
community is more inclined to put its cash back into the markets, and is yet
another reflection of the increasingly positive investor sentiment prevailing at
the end of the quarter.
INVESTMENT OUTLOOK
At the end of the last quarter, the Bundesbank made a surprise cut in
rates, and at the time of this writing the Fed had just cut rates in the US,
which bolstered investor perception that we can expect the return of a reducing
interest rate environment.
The Bundesbank is unlikely to make any further interest rate cuts until
inflation figures resume a declining trend, but we believe that this is only a
matter of time, and in our view, the longer the Council takes to cut rates, the
longer the markets will remain excited anticipating such a cut.
Inflation in Spain and Italy are expected to peak during the summer, with
Sweden peaking only next year. In these countries, however, the higher inflation
figures have been taken on board by the market, and the important factors to
consider over the next few months will be their ability to cut the budget
deficits. At the moment the markets are sceptical, particularly of the political
will (in the case of Spain and Sweden) or the ability (in the case of Italy).
Investors' suspicions about any improvement should be confirmed in the next few
months as tax receipts on corporate earnings of 1994 begin arriving in Treasury
coffers.
In terms of the positioning of the portfolio, we have reduced our weighting
in France because of the uncertainty surrounding the new administration's
attitude to fiscal and monetary policy. Corporate Germany is obviously
suffering, not only from non-competitiveness, but also from margin squeezes
partly caused by domestic wage demands. We have switched the funds from France,
and to a certain extent from Germany, into Holland, where we have an
aggressively overweight position and where the majority of companies are
significantly cheaper and better-managed than in France or Germany. We have
taken advantage of the recent strength in Spain to reduce our exposure to
cyclicals and underweight the market. In Italy we have maintained an underweight
position, but rebalanced the portfolio towards financials and telecoms, away
from industrials, namely Fiat and Pirelli. In the UK we have assumed a slightly
underweight position in the market as we continue to be wary about the
Government's fiscal policy ahead of a General Election which is expected to take
place at the beginning of 1997.
Ronnie Armist
Mark Lloyd-Price
July 28, 1995
3
<PAGE>
INDUSTRY DIVERSIFICATION
WORLDWIDE VALUE FUND, INC. / JUNE 30, 1995
<TABLE>
<CAPTION>
% of Net Market
Assets Value
(000)
<S> <C> <C>
Banking 12.3% $ 7,177
Pharmaceuticals and Health Care 11.0 6,390
Retail Sales 7.8 4,556
Multi-Industry 6.9 4,028
Insurance 5.7 3,326
Utilities 5.5 3,196
Oil and Gas 5.3 3,081
Electrical Equipment 4.9 2,865
Chemical 4.6 2,680
Miscellaneous Services 4.1 2,386
Publishing 4.0 2,302
Construction Materials 3.3 1,950
Manufacturing 2.8 1,630
Finance 2.5 1,450
Paper and Forest Products 2.3 1,327
Food, Beverage and Tobacco 2.1 1,236
Automotive 2.1 1,216
Leisure 2.0 1,145
Transportation 1.8 1,018
Investment Holding Companies 1.7 1,014
Machinery 1.6 907
Metals 1.1 635
Total Investment Portfolio 95.4 55,515
Other Assets Less Liabilities 4.6 2,699
NET ASSETS 100.0% $58,214
</TABLE>
4
<PAGE>
STATEMENT OF NET ASSETS / UNAUDITED
WORLDWIDE VALUE FUND, INC. / JUNE 30, 1995 / AMOUNTS IN THOUSANDS
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
COMMON STOCKS AND
EQUITY INTERESTS--95.4%
AUSTRALIA--N.M.
Pirie Capital Ltd. 126 $ 16(A)
Pirie Capital Ltd.--Warrants 126 5(A)
21
AUSTRIA--0.7%
Flughafen Wien A.G. 8 399
BELGIUM--0.6%
Kredietbank N. V. 1 319
DENMARK--1.0%
Novo-Nordisk AS "B" 3 288
Teledanmark--B Shares 6 312
600
FINLAND--1.1%
Oy Nokia Ab Fria 11 632
FRANCE--12.0%
Assurances Generales de France 19 607
Castorama Dubois
Investissements 3 481
Christian Dior 8 674
Compagnie Financiere Paribas 6 370
Credit National 7 552
Ecco S.A. 4 627
Guilbert S.A. 5 491
Lafar ge Coppee S.A. 7 548
Lyonnaise des Eaux 3 265
Rhone-Poulenc S.A. 24 532
Roussel-Uclaf 3 507
Sita 3 405
Sylea 5 522
Total S.A. 7 428
7,009
GERMANY--13.1%
Allianz A.G. Holding 1 767
Allianz A.G. Holding-Rights 1 33
Bayer A.G. 2 475
Commerzbank A.G. 2 550
Deutsche Bank A.G. 13 627
Heidelberger Zement A.G. 1 614
Karstadt A.G. 1 571
Mannesmann A.G. 3 907
GERMANY--CONTINUED
Schering A.G. 10 $678
Siemens A.G. 1 655
Veba A.G. 3 1,158
Viag A.G. 1 572
7,607
ITALY--2.2%
Credito Italiano 612 709
IMI 44 269
R.A.S. Milano 25 270(A)
1,248
NETHERLANDS--12.3%
Aegon NV 20 703
Ahold NV 17 620
Akzo Nobel NV 4 448
Elsevier NV 56 659
Getronics NV 11 554
International Nederland
Groep NV 17 948
Oce Van Der Grinten NV 5 254
Philips Electronics NV 21 910
Royal Dutch Petroleum 9 1,148
Ver Ned Uitgeversbedr
Ver. Bezit NV 4 479
Wegener NV 5 415
7,138
NORWAY--1.9%
Orkla "A" Fria 14 632
Sensonor 39 276
Veidekke 11 222
1,130
SPAIN--3.1%
Argentaria Corp. Bancaria 8 292
Autopistas, CESA 64 619
Banco Santander S.A. 7 296
ENDESA 12 592
1,799
SWEDEN--4.7%
AB Astra, Class A 20 630
Graningeverkens AB 28 464
Sandvik AB, Class B 35 635
Sparbanken Sverige 53 443
Svedala Industrier Fria 21 566
2,738
</TABLE>
5
STATEMENT OF NET ASSETS / CONTINUED
WORLDWIDE VALUE FUND, INC. / JUNE 30, 1995 / AMOUNTS IN THOUSANDS
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
SWITZERLAND--11.1%
Baloise-Holding Registered N.M. $ 798
Brown Boveri & Cie Bearer N.M. 414
Ciba-Geigy SA Registered 1 623
Clariant 2 602
Nestle SA Registered 1 604
Publicitas Holdings 1 438(A)
Roche Holdings N.M. 1,289
Sandoz SA Registered 1 976
Union de Banque Suisse 1 725
6,469
UNITED KINGDOM--31.6%
Bank of Ireland 156 893
Barclays P.L.C. 100 1,074
British Petroleum P.L.C. 210 1,505
BTR P.L.C. 121 615
Compass Group 193 1,145
Etam 379 1,002
Fairey Group P.L.C. 59 420
Glaxo Wellcome P.L.C. 128 1,571(B)
Granada Group P.L.C. 126 1,227
Henlys Group P.L.C. 97 694
IMI 112 534
MAI P.L.C. 158 650
Medeva 113 449
Next P.L.C. 346 1,882
Reuters Holdings P.L.C. 90 749
Standard Chartered Bank P.L.C. 71 377
Smith (David S.) Holdings 129 1,327
Smiths Industries 82 676
Wassall P.L.C. 391 1,614
18,404
<S> <C> <C>
UNITED STATES OF AMERICA--N.M.
Progressions Health Systems, Inc. 2 $ 2(A)
Total Investments--95.4%
(Identified Cost--$49,006) 55,515
Other Assets Less Liabilities--4.6% 2,699
NET ASSETS CONSISTING OF:
Common stock at par value
$.001 per share, authorized
50,000 shares, issued 3,005
shares, outstanding 2,989
shares $ 3
Accumulated paid-in capital 53,637
Undistributed net investment
income 272
Accumulated net realized loss on
investments, forward currency
contracts, options and
currency translations (2,271)
Unrealized appreciation of
investments, forward currency
contracts, options and
currency translations 6,573
NET ASSETS-100.0% $58,214
NET ASSET VALUE PER SHARE $ 19.48
</TABLE>
<TABLE>
<CAPTION>
NET
CONTRACTS APPRECIATION
OPTIONS WRITTEN
<S> <C> <C> <C>
Glaxo Wellcome P.L.C. July 95 Strike Price (Pounds sign)7.50 90 $ 8
Reuters Holdings P.L.C. July 95 Strike Price (Pounds sign)5.00 90 12
Barclays P.L.C. September 95 Strike Price (Pounds sign)6.50 70 (11)
Barclays P.L.C. September 95 Strike Price (Pounds sign)7.00 30 (4)
$ 5
</TABLE>
(A) Non-income producing
(B) Collateral to cover written options
N.M.Not meaningful
See notes to financial statements.
6
<PAGE>
STATEMENT OF OPERATIONS / UNAUDITED
WORLDWIDE VALUE FUND, INC. / FOR THE SIX MONTHS ENDED
JUNE 30, 1995 / AMOUNTS IN THOUSANDS
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME:
Dividends $ 947
Interest 12
Less foreign income tax expense (129)
Total investment income $ 830
EXPENSES:
Investment advisory fee 276
Administration fee 55
Custodian fees 70
Directors' fees and expenses 59
Legal and audit fees 31
Reports to shareholders 21
Transfer agent and shareholder servicing expense 10
Registration expense 8
Other expenses 28
Total expenses 558
NET INVESTMENT INCOME 272
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
FORWARD CURRENCY CONTRACTS, OPTIONS AND CURRENCY
TRANSLATIONS
Realized gain (loss) from:
Investments 1,890
Forward currency contracts and options (816)
Change in unrealized appreciation of:
Investments 4,012
Forward currency contracts, options and currency
translations (38)
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS,
FORWARD CURRENCY CONTRACTS, OPTIONS AND CURRENCY
TRANSLATIONS 5,048
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $5,320
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
WORLDWIDE VALUE FUND, INC. / AMOUNTS IN THOUSANDS
<TABLE>
<CAPTION>
For the Six For the
Months Ended Year Ended
June 30, 1995 Dec. 31, 1994
(Unaudited)
<S> <C> <C>
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income (loss) $ 272 $ (97)
Net realized gain on investments 1,074 2,732
Change in unrealized appreciation of investments,
forward currency contracts, options and currency
translations 3,974 (4,986)
Change in net assets resulting from operations 5,320 (2,351)
Change in net assets from Fund stock repurchase (241) -
Change in net assets 5,079 (2,351)
NET ASSETS:
Beginning of period 53,135 55,486
End of period (including undistributed net investment
income of $272 and $0, respectively) $ 58,214 $ 53,135
</TABLE>
See notes to financial statements.
7
<PAGE>
FINANCIAL HIGHLIGHTS
WORLDWIDE VALUE FUND, INC.
Contained below is per share operating performance data for a share of
common stock outstanding, total investment return, ratios to average net assets
and other supplemental data. This information has been derived from information
provided in the financial statements and market price data for the Fund's
shares.
<TABLE>
<CAPTION>
For the Six
Months Ended For the Years Ended December 31,
June 30, 1995 1994 1993 1992 1991 1990
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE:
Net asset value beginning of period $17.68 $18.46 $14.29 $15.44 $14.65 $20.14
Net investment income (loss) .09 (.03) .14 .08 .08 .19
Net realized and unrealized gain (loss) on
investments, forward currency contracts,
options and currency translations 1.71 (.75) 4.13 (1.19) .92 (4.30)
Total from investment operations 1.80 (.78) 4.27 (1.11) 1.00 (4.11)
Dividends and distributions paid:
Net investment income - - (.05) (.04) (.21) (.08)
Net realized gain - - - - - (.85)
In excess of net investment income - - (.05) - - -
Accumulated paid-in capital - - - - - (.45)
Total dividends and distributions - - (.10) (.04) (.21) (1.38)
Net asset value, end of period $19.48 $17.68 $18.46 $14.29 $15.44 $14.65
Market value per share, end of period $15.125 $14.25 $16.625 $12.00 $12.50 $12.125
TOTAL INVESTMENT RETURN:
Based on market value per share 6.1%(B) (14.3%) 39.3% (3.7%) 4.7% (30.4%)
RATIOS/SUPPLEMENTAL DATA:
Ratios to average net assets:
Expenses 2.0%(A) 2.1% 2.1% 2.2% 2.3% 2.4%
Net investment income 1.0%(A) - 0.9% 0.5% 0.5% 1.1%
Portfolio turnover rate 152.9%(A) 75.0% 66.8% 148.4% 91.9% 84.3%
Net assets, end of period (in thousands) $58,214 $53,135 $55,486 $42,930 $46,405 $44,026
</TABLE>
(A) Annualized
(B) Not annualized
See notes to financial statements.
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS / UNAUDITED
WORLDWIDE VALUE FUND, INC. / AMOUNTS IN THOUSANDS
1. SIGNIFICANT ACCOUNTING POLICIES:
Worldwide Value Fund, Inc. ("Fund") is registered under the Investment
Company Act of 1940, as amended, as a closed-end, diversified investment
company. The following accounting policies are in conformity with generally
accepted accounting principles for investment companies. Such policies are
consistently followed by the Fund in the preparation of its financial
statements.
SECURITY VALUATION
All securities for which market quotations are readily available are valued
at the last sales price, or if no sales price is available at that time, at the
mean between the latest bid and asked prices. Securities that are traded over-
the-counter are valued at the mean between the latest bid and asked prices. If
market or bid and asked quotations are not available, securities will be valued
as determined in good faith by the Board of Directors.
CURRENCY TRANSLATION
The books and records of the Fund are maintained in US dollars. Foreign
currency amounts are translated into US dollars on the following basis:
(i) market value of investment securities, options, assets and liabilities
are translated at the closing daily rate of exchange, and
(ii) purchases and sales of investment securities, options, dividend and
interest income and expenses are translated at the rate of exchange
prevailing on the respective date of such transactions.
The effect of changes in foreign exchange rates on realized and unrealized
security gains or losses is reflected as a component of such gains or losses.
SECURITY TRANSACTIONS AND
INVESTMENT INCOME
Security transactions are recorded on the trade date. Realized gains and
losses from security transactions are reported on an identified cost basis.
Dividend income is recorded on the ex-dividend date. Interest income and
expenses are recorded on the accrual basis.
FEDERAL INCOME TAX
No provision for federal income or excise tax is required, since the Fund
intends to continue to qualify as a regulated investment company and distribute
all of its taxable income to its shareholders.
DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders are recorded on the ex-dividend date. The Fund
expects to distribute annually to shareholders all of its net investment income
and net realized short-term and long-term capital gain.
2. INVESTMENT TRANSACTIONS:
Investment transactions for the six months ended June 30, 1995 (excluding
short-term securities) were as follows:
<TABLE>
<S> <C>
Purchases . . . . . . . . . . . . . . . . . . . . . $37,722
Proceeds from sales . . . . . . . . . . . . . . . . 40,892
</TABLE>
At June 30, 1995, the cost of securities for federal income tax purposes was
$49,168. Aggregate gross unrealized appreciation for all securities in which
there was an excess of value over tax cost was $7,884 and aggregate gross
unrealized depreciation for all securities in which there was an excess of tax
cost over value was $1,537. The Fund has unused capital loss carryforwards for
federal income tax purposes of $2,965 which expire in 1998 through 2000.
3. TRANSACTIONS WITH AFFILIATES:
The Fund has an investment advisory agreement with Lombard Odier
International Portfolio Management Limited ("Adviser") for which the Adviser
receives a monthly fee at an annual rate of 1% of the Fund's net assets, based
on the net assets on the last business day of each month. This rate is reduced
on net asset values in excess of $100 million. The Adviser has managed the
Fund's portfolio since its inception in 1986.
The Fund has an administration contract with Legg Mason Fund Adviser, Inc.
("Administrator") for which the Administrator receives from the Fund a monthly
fee at an annual rate of .20% of the Fund's net assets, based on the net assets
on the last business day of each month. This rate is reduced on net asset values
in excess of $100 million.
9
<PAGE>
NOTES TO FINANCIAL STATEMENTS / CONTINUED
WORLDWIDE VALUE FUND, INC. / AMOUNTS IN THOUSANDS
The Administrator also serves as Investment Consultant ("Consultant") to the
Adviser pursuant to an Investment Consultant Contract with the Adviser and the
Fund. Under the Investment Consultant Contract, the Consultant provides the
Adviser with investment advice, research and assistance, primarily regarding
United States securities. For its services, the Consultant receives from the
Adviser a monthly fee at the same rate and basis as in the Administration
Contract discussed in the preceding paragraph.
4. FINANCIAL INSTRUMENTS:
As part of the Fund's investment program, the Fund may utilize repurchase
agreements, forward currency contracts, options and futures. The nature and risk
of these financial instruments and the reason for using them are set forth more
fully in the Fund's Prospectus.
REPURCHASE AGREEMENTS
All repurchase agreements are fully collateralized by obligations issued by
the US government or its agencies and such collateral is in the possession of
the Fund's custodian. The value of such collateral includes accrued interest.
Risks arise from the possible delay in recovery or potential loss of rights in
the collateral should the issuer of the repurchase agreement fail financially.
FORWARD CURRENCY CONTRACTS
The Fund may enter into foreign forward currency contracts to hedge against
adverse changes in the relationship of the US dollar to foreign currencies.
Risks arise from the possible inability of counter-parties to meet the terms of
their contracts and from movements in currency values. Forward currency
contracts are valued using the forward rate.
As of June 30, 1995 the Fund had entered into the following currency
contracts:
<TABLE>
<CAPTION>
Settlement Unrealized
Date Gain (Loss)
<S> <C> <C>
Contracts to Sell
338 Swiss Francs 7/24/95 $ 6
47,940 Belgian Francs 8/11/95 13
5,051 Deutschmarks 8/11/95 42
10,698 French Francs 8/11/95 (3)
10,975 Swedish Krone 9/29/95 3
$61
</TABLE>
OPTION TRANSACTIONS
A call option written gives the option holder the right to purchase the
underlying security at a specified price until a specified date. A put option
written gives the option holder the right to sell the underlying security at a
specified price until a specified date. Risks arise from the possible
illiquidity of the options market and from movements in security values. Call
options written by the Fund and related premiums received during the period
were as follows:
<TABLE>
<CAPTION>
Contracts Premiums
<S> <C> <C>
Options outstanding
December 31, 1994 165 $ 69
Options written 553 257
Options closed (438) (200)
Options outstanding
June 30, 1995 280 $126
</TABLE>
The written options outstanding at June 30, 1995 are described at the end of
the "Statement of Net Assets", page 6.
10
<PAGE>
QUARTERLY RESULTS OF INVESTMENT OPERATIONS
(UNAUDITED)
Shown in thousands of dollars and per common share:
<TABLE>
<CAPTION>
Three Months Ended
June 30, 1995 March 31, 1995 Dec. 31, 1994 Sept. 30, 1994
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Total investment income $ 631 $0.21 $ 199 $ 0.07 $ 86 $ 0.03 $267 $ 0.09
Net investment income (loss) 337 0.11 (65) (0.02) (222) (0.07) (18) (0.01)
Net realized and unrealized gain
(loss) on investments, options
and foreign currency contracts 3,811 1.30 1,237 0.41 (149) (0.05) 1,618 0.54
</TABLE>
<TABLE>
<CAPTION>
Three Months Ended
June 30, 1994 March 31, 1994 Dec. 31, 1993 Sept. 30, 1993
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Total investment income $ 540 $ 0.18 $ 156 $ 0.05 $ 80 $ 0.03 $ 303 $0.10
Net investment income (loss) 258 0.09 (115) (0.04) (170) (0.06) 54 0.02
Net realized and unrealized gain
(loss) on investments, options
and foreign currency contracts (2,406) (0.80) (1,318) (0.44) 5,115 1.70 4,284 1.42
</TABLE>
DIVIDEND REINVESTMENT PLAN
Worldwide Value Fund, Inc. offers an Automatic Dividend Reinvestment Plan,
whereby dividends and distributions are automatically reinvested in additional
shares of the Fund. Shareholders who prefer to receive dividends and
distributions in cash should contact their investment broker if shares are held
in street name, or State Street Bank & Trust Company, P.O. Box 366, Boston, MA
02101 if shares are held in their own name.
SHAREHOLDER ACCOUNT INFORMATION
Shareholders whose accounts are held in their own name may contact the
Fund's Transfer Agent, State Street Bank & Trust Company at (800) 426-5523 for
information concerning their accounts.
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that the Fund may purchase, from time to time, up to 150,000
of the outstanding shares of its common stock at market prices.
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