WORLDWIDE
DOLLARVEST
FUND, INC.
[GRAPHIC OMITTED]
STRATEGIC
Performance
Semi-Annual Report
May 31, 2000
<PAGE>
WORLDWIDE DOLLARVEST FUND, INC.
The Benefits and Risks of Leveraging
The Fund is authorized to utilize leverage in an amount up to 33 1/3% of the
Fund's total assets (including the amount obtained from the leverage).
The concept of leveraging is based on the premise that the cost of assets to be
obtained from leverage will be based on short-term interest rates, which
normally will be lower than the return earned by the Fund on its longer-term
portfolio investments. Since the total assets of the Fund (including the assets
obtained from leverage) will be invested in the higher-yielding portfolio
investments, the Fund's Common Stock shareholders are the beneficiaries of the
incremental yield. Should the differential between the underlying interest rates
narrow, the incremental yield "pick up" will be reduced. Furthermore, if
long-term interest rates rise, the Common Stock net asset value will reflect the
full decline in the entire portfolio holdings therefrom since the assets
obtained from leverage do not fluctuate.
Leverage creates risks for holders of Common Stock including the likelihood of
greater net asset value and market price volatility. In addition, there is the
risk that fluctuations in interest rates on borrowings (or in the dividend rates
on any Preferred Stock, if the Fund were to issue Preferred Stock) may reduce
the Common Stock's yield and negatively impact its market price. If the income
derived from securities purchased with assets received from leverage exceeds the
cost of leverage, the Fund's net income will be greater than if leverage had not
been used. Conversely, if the income from the securities purchased is not
sufficient to cover the cost of leverage, the Fund's net income will be less
than if leverage had not been used, and therefore the amount available for
distribution to Common Stock shareholders will be reduced. In this case, the
Fund may nevertheless decide to maintain its leveraged position in order to
avoid capital losses on securities purchased with leverage. However, the Fund
will not generally utilize leverage if it anticipates that its leveraged capital
structure would result in a lower rate of return for its Common Stock than would
be obtained if the Common Stock were unleveraged for any significant amount of
time.
<PAGE>
Worldwide DollarVest Fund, Inc., May 31, 2000
DEAR SHAREHOLDER
Market Overview
During the six months ended May 31, 2000, the markets in which the Fund invests
gave investors upward momentum, disappointment and another taste of hope as the
period ended. A generally optimistic view of global recovery early in the year
was cut short in April. The continued volatility in US equity markets and
expectations of further Federal Reserve Board interest rate increases spilled
over to the emerging markets and put further pressure on an already sagging
high-yield market. At May 31, 2000, investors were comforted by the potential
completion of the current Federal Reserve Board tightening cycle. For the
six-month period ended May 31, 2000, the Fund's blended benchmark had a total
return of +5.34%, with the unmanaged JP Morgan Emerging Markets (EMBI+) Index
component up 8.5%, offset by a lagging CS First Boston Global High Yield Index
that was down 1.8%. Ten-year US Treasury issues gained 1.48% for the same
six-month period.
Emerging Markets Outlook
During the past several months, there has been an improvement in emerging market
economic fundamentals. Notable has been the upgrade of Mexico to investment
grade by one of the major bond rating agencies, hope in Russia of resumed
structural reform, improved public finances and reforms in Brazil, and a good
start by the new Argentine government in dealing with its finances. We believe
that continued improvements in some countries are likely. However, in Latin
America, elections may preclude substantive improvement on the economic front
for the next few months. Continued equity market volatility in the United States
could dampen enthusiasm for emerging markets bonds as well. However, as
investors become comfortable with the Federal Reserve Board's progress in
slowing the US economy, the outlook for emerging markets bonds brightens.
Sidelined cash in investors' hands could fuel an improved market if that
scenario plays out. In either case, we believe that this asset class offers good
long-term value.
High-Yield Outlook
Although we believe that the high-yield market represents good long-term value,
the near-term outlook is much less optimistic. Market technicals, illiquidity
and cash outflows continue to pressure bond prices, as does Federal Reserve
Board monetary policy tightening. Investor reaction to negative earnings
surprises has been to sell at any price. However, at 714 basis points (7.14%) by
May 31, 2000, the yield spread of Treasury issues is historically wide, and the
high-yield market's yield of 13.56% is generous.
Fund Performance and Investment Strategy
For the six months ended May 31, 2000, the total investment return on Worldwide
DollarVest Fund, Inc.'s Common Stock was +3.83%, based on a change in the per
share net asset value from $6.18 to $6.06, and assuming reinvestment of $0.307
per share income dividends. During the same period, the Fund earned $0.309 per
share income dividends, representing a net annualized yield of 10.17%. The
Fund's blended benchmark, which consists of a 70% weighting of the EMBI+ Index
and a 30% weighting of the CS First Boston Global High Yield Index, posted a
total return of +5.34% for the period. Relative to the benchmark, the Fund
underperformed for the six months ended May 31, 2000.
During the six months ended May 31, 2000, our high-yield exposure was a drag on
performance. The Fund held near 33% of its holdings in high-yield securities
compared to 30% for the benchmark, as the high-yield market remained weak.
Within the high-yield component, several positions experienced sharp price drops
during the period because of negative news and earnings surprises. Our relative
underweighting in Russia, a market outperformer, moderated gains from our
emerging markets holdings. In light of improved potential for economic progress
in Russia, we modestly increased exposure to that country.
Emerging markets exposure is broadly aligned with the country distribution of
the benchmark EMBI+ Index, with modest overweighting or underweighting depending
on our country outlooks. Among the large country exposures, the Fund is
currently over weighted in Brazil and Mexico, slightly underweighted in
Argentina and somewhat underweighted in Russia. The Fund was leveraged in the
range of 12%-15% of total assets. (For a complete explanation of the benefits
and risks of leveraging, see page 1 of this report to shareholders.) Toward the
end of the period, we shifted our weighting from global bonds to Brady bonds in
an effort to lessen the Fund's exposure to interest rate fluctuations, as global
bonds generally exhibit more interest rate sensitivity.
In Conclusion
We thank you for your investment in Worldwide DollarVest Fund, Inc.
Sincerely,
/s/ Terry K. Glenn
Terry K. Glenn
President and Director
/s/ Vincent T. Lathbury III
Vincent T. Lathbury III
Senior Vice President and Portfolio Manager
June 23, 2000
--------------------------------------------------------------------------------
On April 26, 2000, the Fund's Board of Directors approved a plan of
reorganization, whereby Merrill Lynch Americas Income Fund, Inc. would acquire
substantially all the assets and liabilities of the Fund in exchange for newly
issued shares of Merrill Lynch Americas Income Fund, Inc. Merrill Lynch Americas
Income Fund, Inc. is a registered, diversified, open-end management investment
company, and is managed by Merrill Lynch Asset Management, L.P. (MLAM). The
reorganization of the Fund and Merrill Lynch Americas Income Fund, Inc. is
contingent upon the approval of a proposal to change the investment objective
and investment policies of Merrill Lynch Americas Income Fund, Inc. Worldwide
DollarVest Fund, Inc. is a non-diversified, closed-end management investment
company, and is managed by Fund Asset Management, L.P., which is an affiliate of
MLAM.
--------------------------------------------------------------------------------
2 & 3
<PAGE>
Worldwide DollarVest Fund, Inc., May 31, 2000
SCHEDULE OF INVESTMENTS (in US dollars)
<TABLE>
<CAPTION>
Percent
Face Interest Maturity of Net
COUNTRY Industry Amount Bonds Rate Date Value Assests
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
Brazil Sovereign Government US$ 450,000 Republic of Brazil 11.625% 4/15/2004 $ 444,375 1.1%
Obligations
--------------------------------------------------------------------------------------------------------------------
Total Bonds in Brazil 444,375 1.1
====================================================================================================================================
Canada Computer Services-- 750,000 Celestica International 10.50 12/31/2006 774,375 2.0
Electronics
--------------------------------------------------------------------------------------------------------------------
Paper & Forest 750,000 Doman Industries Limited 8.75 3/15/2004 618,750 1.6
Products
--------------------------------------------------------------------------------------------------------------------
Total Bonds in Canada 1,393,125 3.6
====================================================================================================================================
Luxembourg Wireless 500,000 Millicom International
Communications-- Cellular SA 15.931* 6/01/2006 425,000 1.1
International
Paging & Cellular
--------------------------------------------------------------------------------------------------------------------
Total Bonds in Luxembourg 425,000 1.1
====================================================================================================================================
Mexico Banking--International 1,200,000 Bancomext Trust Division 11.25 5/30/2006 1,218,221 3.1
--------------------------------------------------------------------------------------------------------------------
Industrial 1,000,000 Petroleos Mexicanos 9.50 9/15/2027 910,000 2.3
--------------------------------------------------------------------------------------------------------------------
Sovereign Government 1,750,000 United Mexican States 8.625 3/12/2008 1,616,562 4.1
Obligations 1,120,000 United Mexican States 6.25 12/31/2019 893,200 2.3
---------- ----
2,509,762 6.4
--------------------------------------------------------------------------------------------------------------------
Total Bonds in Mexico 4,637,983 11.8
====================================================================================================================================
Netherlands Financial Services 850,000 TPSA Finance BV (a) 7.75 12/10/2008 800,696 2.0
--------------------------------------------------------------------------------------------------------------------
Total Bonds in the Netherlands 800,696 2.0
====================================================================================================================================
Philippines Sovereign Government 100,000 Republic of the Philippines 8.875 4/15/2008 88,000 0.2
Obligations 380,000 Republic of the Philippines 9.875 1/15/2019 300,200 0.8
--------------------------------------------------------------------------------------------------------------------
Total Bonds in the Philippines 388,200 1.0
====================================================================================================================================
Russia Sovereign Government 1,000,000 Russian Federation Bonds (a) 12.75 6/24/2028 771,250 2.0
Obligations 600,000 Russian Federation Bonds
(Regulation S) 11.00 7/24/2018 409,500 1.0
1,750,000 Russian Federation Bonds
(Regulation S) 12.75 6/24/2028 1,349,687 3.4
--------------------------------------------------------------------------------------------------------------------
Total Bonds in Russia 2,530,437 6.4
====================================================================================================================================
Turkey Sovereign Government 900,000 Republic of Turkey 11.875 1/15/2030 934,182 2.4
Obligations
--------------------------------------------------------------------------------------------------------------------
Total Bonds in Turkey 934,182 2.4
====================================================================================================================================
United Kingdom Cable--International 1,500,000 Telewest Communications PLC 9.075* 4/15/2009 840,000 2.1
--------------------------------------------------------------------------------------------------------------------
Total Bonds in the United
Kingdom 840,000 2.1
====================================================================================================================================
United States Broadcasting-- 750,000 Cumulus Media, Inc. 10.375 7/01/2008 633,750 1.6
Radio & Television
--------------------------------------------------------------------------------------------------------------------
Chemicals 1,000,000 Lyondell Chemical Company,
Series A 9.625 5/01/2007 967,500 2.5
--------------------------------------------------------------------------------------------------------------------
Communications 500,000 Charter Communications Holdings
LLC 8.25 4/01/2007 426,250 1.1
--------------------------------------------------------------------------------------------------------------------
Consumer Products 1,000,000 Chattem, Inc., Series A 8.875 4/01/2008 847,500 2.2
--------------------------------------------------------------------------------------------------------------------
Energy 500,000 Ocean Energy Inc., Series B 7.625 7/01/2005 468,750 1.2
--------------------------------------------------------------------------------------------------------------------
Financial Services 500,000 RBF Finance Company 11.00 3/15/2006 531,250 1.3
--------------------------------------------------------------------------------------------------------------------
Gaming 750,000 Venetian Casino/LV Sands 12.25 11/15/2004 727,500 1.8
--------------------------------------------------------------------------------------------------------------------
Health Services 1,250,000 Extendicare Health Services 9.35 12/15/2007 462,500 1.2
500,000 Fresenius Medical Capital
Trust II 7.875 2/01/2008 440,000 1.1
---------- ----
902,500 2.3
--------------------------------------------------------------------------------------------------------------------
Hotels 1,000,000 HMH Properties, Inc., Series B 7.875 8/01/2008 855,000 2.2
--------------------------------------------------------------------------------------------------------------------
Industrial 1,000,000 Metal Management Inc. 10.00 5/15/2008 660,000 1.7
--------------------------------------------------------------------------------------------------------------------
Metals & Mining 750,000 Kaiser Aluminum & Chemical Corp. 12.75 2/01/2003 697,500 1.8
--------------------------------------------------------------------------------------------------------------------
Real Estate 500,000 Forest City Enterprises Inc. 8.50 3/15/2008 443,750 1.1
--------------------------------------------------------------------------------------------------------------------
Telecommunications 1,375,000 Nextel Communications, Inc. (a) 11.477* 2/15/2008 965,937 2.5
1,000,000 PSINet, Inc., Series B 10.00 2/15/2005 885,000 2.2
---------- ----
1,850,937 4.7
--------------------------------------------------------------------------------------------------------------------
Telephony--Competitive 750,000 Nextlink Communications Inc. 9.00 3/15/2008 667,500 1.7
Local Exchange Carriers
--------------------------------------------------------------------------------------------------------------------
Wireless Communications 500,000 Spectrasite Holdings Inc. (a) 10.75 3/15/2010 488,750 1.2
675,000 VoiceStream Wireless 10.375 11/15/2009 691,875 1.8
---------- ----
1,180,625 3.0
--------------------------------------------------------------------------------------------------------------------
Total Bonds in the United States 11,860,312 30.2
====================================================================================================================================
Total Investments in Bonds
(Cost--$25,398,992) 24,254,310 61.7
====================================================================================================================================
Brady Bonds**
====================================================================================================================================
Argentina Sovereign Government 480,000 Republic of Argentina 7.375+ 3/31/2005 433,200 1.1
Obligations 4,775,000 Republic of Argentina (c) 6.00 3/31/2023 3,157,469 8.0
3,635,000 Republic of Argentina,
Discount (c) 7.875+ 3/31/2023 3,017,050 7.7
--------------------------------------------------------------------------------------------------------------------
Total Brady Bonds in Argentina 6,607,719 16.8
====================================================================================================================================
Brazil Sovereign Government 2,050,000 Brazil-DCB (c) 7.438+ 4/15/2012 1,458,062 3.7
Obligations 218,550 Republic of Brazil 7.375+ 4/15/2006 193,417 0.5
2,475,134 Republic of Brazil 'C' (c) 8.00+ 4/15/2014 1,735,688 4.4
3,000,000 Republic of Brazil, Discount 7.375+ 4/15/2024 2,253,750 5.7
2,150,000 Republic of Brazil, Par Z 6.00+ 4/15/2024 1,308,813 3.3
--------------------------------------------------------------------------------------------------------------------
Total Brady Bonds in Brazil 6,949,730 17.6
====================================================================================================================================
Bulgaria Sovereign Government 550,000 Republic of Bulgaria 'A',
Obligations Front-Loaded Interest
Rate Reduction Bonds 2.75+ 7/28/2012 369,875 0.9
550,000 Republic of Bulgaria, Discount 'A' 7.063+ 7/28/2024 413,875 1.1
--------------------------------------------------------------------------------------------------------------------
Total Brady Bonds in Bulgaria 783,750 2.0
====================================================================================================================================
</TABLE>
4 & 5
<PAGE>
Worldwide DollarVest Fund, Inc., May 31, 2000
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
<TABLE>
<CAPTION>
Percent
Face Interest Maturity of Net
COUNTRY Industry Amount Brady Bonds** Rate Date Value Assets
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
Mexico Sovereign Government US$ 525,000 United Mexican States, Discount 'A' 4.188+% 12/31/2019 $ 513,524 1.3%
Obligations 800,000 United Mexican States 'W-B' 6.25 12/31/2019 638,000 1.6
---------------------------------------------------------------------------------------------------------------------
Total Brady Bonds in Mexico 1,151,524 2.9
====================================================================================================================================
Nigeria Sovereign Government 500,000 Central Bank of Nigeria 'WW' 6.25+ 11/15/2020 240,000 0.6
Obligations
---------------------------------------------------------------------------------------------------------------------
Total Brady Bonds in Nigeria 240,000 0.6
====================================================================================================================================
Panama Sovereign Government 865,000 Republic of Panama, Interest
Obligations Reduction Bonds 4.25+ 7/17/2014 657,400 1.7
---------------------------------------------------------------------------------------------------------------------
Total Brady Bonds in Panama 657,400 1.7
====================================================================================================================================
Peru Sovereign Government 850,000 Republic of Peru, Front-Loaded
Obligations Interest
Rate Reduction Bonds 3.75+ 3/07/2017 482,375 1.2
---------------------------------------------------------------------------------------------------------------------
Total Brady Bonds in Peru 482,375 1.2
====================================================================================================================================
Poland Sovereign Government 180,000 Republic of Poland PDI 6.00 10/27/2014 157,500 0.4
Obligations
---------------------------------------------------------------------------------------------------------------------
Total Brady Bonds in Poland 157,500 0.4
====================================================================================================================================
Venezuela Sovereign Government 761,900 Republic of Venezuela, DCB 7.00+ 12/18/2007 599,044 1.5
Obligations 333,330 Republic of Venezuela, Front-Loaded
Interest Rate Reduction Bonds 7.438+ 3/31/2007 258,331 0.7
1,350,000 Republic of Venezuela, Par 'A' 6.75 3/31/2020 901,125 2.3
---------------------------------------------------------------------------------------------------------------------
Total Brady Bonds in Venezuela 1,758,500 4.5
====================================================================================================================================
Total Investments in Brady Bonds
(Cost--$18,616,229) 18,788,498 47.7
====================================================================================================================================
Shares
Held Warrants & Rights
====================================================================================================================================
Mexico Sovereign Government 807,000 United Mexican States (Value Recovery
Obligations Rights) (e) 0 0.0
---------------------------------------------------------------------------------------------------------------------
Total Rights in Mexico 0 0.0
====================================================================================================================================
Nigeria Sovereign Government 500 Nigeria Oil (Warrants) (b) 0 0.0
Obligations
---------------------------------------------------------------------------------------------------------------------
Total Warrants in Nigeria 0 0.0
====================================================================================================================================
Venezuela Sovereign Government 6,750 Venezuela Oil Obligations
Obligations (Rights) (d) 0 0.0
---------------------------------------------------------------------------------------------------------------------
Total Rights in Venezuela 0 0.0
====================================================================================================================================
Total Investments in Warrants & Rights
(Cost--$0) 0 0.0
====================================================================================================================================
Face
Amount Short-Term Securities
====================================================================================================================================
United States Commercial US$ 1,582,000 General Motors Acceptance Corp. 6.81 6/01/2000 1,582,000 4.0
Paper***
---------------------------------------------------------------------------------------------------------------------
Total Investments in Short-Term Securities
(Cost--$1,582,000) 1,582,000 4.0
====================================================================================================================================
Total Investments (Cost--$45,597,221) 44,624,808 113.4
Liabilities in Excess of Other Assets (5,290,235) (13.4)
----------- -----
Net Assets $39,334,573 100.0%
=========== =====
====================================================================================================================================
</TABLE>
+ Floating rate note.
* Represents a step bond; the interest rate shown reflects the effective
yield at the time of purchase by the Fund.
** Brady Bonds are securities which have been issued to refinance commercial
bank loans and other debt. The risk associated with these instruments is
the amount of any uncollateralized principal or interest payments since
there is a high default rate of commercial bank loans by countries issuing
these securities.
*** Commercial Paper is traded on a discount basis; the interest rate shown
reflects the discount rate paid at the time of purchase by the Fund.
(a) The security may be offered and sold to "qualified institutional buyers"
under Rule 144A of the Securities Act of 1933.
(b) Warrants entitle the Fund to purchase a predetermined number of shares of
common stock and are non-income producing. The purchase price and number
of shares are subject to adjustment under certain conditions until the
expiration date.
(c) Security represents collateral in connection with reverse repurchase
agreements.
(d) The rights may be exercised until 4/15/2020.
(e) The rights may be exercised until 6/30/2003.
See Notes to Financial Statements.
6 & 7
<PAGE>
Worldwide DollarVest Fund, Inc., May 31, 2000
STATEMENT OF ASSETS, LIABILITIES AND CAPITAL
<TABLE>
<CAPTION>
As of May 31, 2000
==============================================================================================================================
<S> <C> <C> <C>
Assets: Investments, at value (identified cost--$45,597,221) ................................ $ 44,624,808
Cash ................................................................................ 64,390
Receivables:
Securities sold ................................................................... $ 3,106,622
Interest .......................................................................... 1,083,671 4,190,293
-----------
Prepaid expenses .................................................................... 28,540
------------
Total assets ........................................................................ 48,908,031
------------
==============================================================================================================================
Liabilities: Payables:
Reverse repurchase agreements ..................................................... 6,458,326
Securities purchased .............................................................. 2,953,740
Dividends to shareholders ......................................................... 35,094
Investment adviser ................................................................ 17,871
Interest on reverse repurchase agreements ......................................... 10,010 9,475,041
-----------
Accrued expenses .................................................................... 98,417
------------
Total liabilities ................................................................... 9,573,458
------------
==============================================================================================================================
Net Assets: Net assets .......................................................................... $ 39,334,573
============
==============================================================================================================================
Capital: Common Stock, $.10 par value, 200,000,000 shares authorized ......................... $ 649,414
Paid-in capital in excess of par .................................................... 90,432,850
Undistributed investment income--net ................................................ 330,678
Accumulated realized capital losses on investments--net ............................. (38,923,045)
Accumulated distributions in excess of realized capital gains on investments--net ... (12,182,911)
Unrealized depreciation on investments--net ......................................... (972,413)
------------
Total--Equivalent to $6.06 per share based on 6,494,144 shares of capital stock
issued and outstanding (market price--$5.875) ....................................... $ 39,334,573
============
==============================================================================================================================
</TABLE>
See Notes to Financial Statements.
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
For the Six Months Ended May 31, 2000
=========================================================================================================================
<S> <C> <C> <C>
Investment Income: Interest and amortization of premium and discount earned ............. $ 2,499,490
=========================================================================================================================
Expenses: Interest on reverse repurchase agreements ............................ $ 211,822
Investment advisory fees ............................................. 142,947
Accounting services .................................................. 38,956
Professional fees .................................................... 29,186
Printing and shareholder reports ..................................... 16,255
Directors' fees and expenses ......................................... 14,503
Custodian fees ....................................................... 8,568
Listing fees ......................................................... 8,260
Transfer agent fees .................................................. 7,417
Pricing services ..................................................... 1,409
Other ................................................................ 2,568
---------
Total expenses ....................................................... 481,891
-----------
Investment income--net ............................................... 2,017,599
-----------
=========================================================================================================================
Realized & Unrealized Realized gain on investments--net .................................... 1,300,878
Gain (Loss) on Change in unrealized appreciation/depreciation on investments--net ... (2,101,747)
Investments--Net: -----------
Net Increase in Net Assets Resulting from Operations ................. $ 1,216,730
===========
=========================================================================================================================
</TABLE>
See Notes to Financial Statements.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the Six For the
Months Ended Year Ended
Increase (Decrease) in Net Assets: May 31, 2000 Nov. 30, 1999
==================================================================================================================
<S> <C> <C> <C>
Operations: Investment income--net ........................................... $ 2,017,599 $ 3,212,414
Realized gain (loss) on investments--net ......................... 1,300,878 (22,303,554)
Change in unrealized appreciation/depreciation on investments--net (2,101,747) 20,989,934
------------ ------------
Net increase in net assets resulting from operations ............. 1,216,730 1,898,794
------------ ------------
==================================================================================================================
Dividends to Dividends to shareholders from investment income--net ............ (1,996,326) (3,591,105)
Shareholders: ------------ ------------
==================================================================================================================
Net Assets: Total decrease in net assets ..................................... (779,596) (1,692,311)
Beginning of period .............................................. 40,114,169 41,806,480
------------ ------------
End of period* ................................................... $ 39,334,573 $ 40,114,169
============ ============
==================================================================================================================
*Undistributed investment income--net ............................. $ 330,678 $ 309,405
============ ============
==================================================================================================================
</TABLE>
See Notes to Financial Statements.
8 & 9
<PAGE>
Worldwide DollarVest Fund, Inc., May 31, 2000
STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
For the Six Months Ended May 31, 2000
====================================================================================================
<S> <C> <C>
Cash Provided by Net increase in net assets resulting from operations ........... $ 1,216,730
Operating Activities: Adjustments to reconcile net increase in net assets resulting
from operations to net cash provided by operating activities:
Decrease in receivables ...................................... 260,905
Decrease in other liabilities ................................ (48,497)
Realized and unrealized loss on investments--net ............. 800,869
Amortization of premium and discount ......................... 297,049
-----------
Net cash provided by operating activities ...................... 2,527,056
-----------
====================================================================================================
Cash Provided by Proceeds from sales of long-term investments ................... 22,831,359
Investing Activities: Purchases of long-term investments ............................. (20,852,874)
Purchases of short-term investments ............................ (54,856,548)
Proceeds from sales and maturities of short-term investments ... 53,636,000
-----------
Net cash provided by investing activities ...................... 757,937
-----------
====================================================================================================
Cash Used for Cash receipts from borrowings .................................. 1,856,578
Financing Activities: Cash payments on borrowings .................................... (3,167,966)
Dividends paid to shareholders ................................. (2,004,413)
-----------
Net cash used for financing activities ......................... (3,315,801)
-----------
====================================================================================================
Cash: Net decrease in cash ........................................... (30,808)
Cash at beginning of period .................................... 95,198
-----------
Cash at end of period .......................................... $ 64,390
===========
====================================================================================================
Cash Flow Cash paid for interest ......................................... $ 316,316
Information: ===========
====================================================================================================
</TABLE>
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
For the
Six
The following per share data and ratios have been derived Months
from information provided in the financial statements. Ended For the Year Ended November 30,
May 31, ------------------------------------------
Increase (Decrease) in Net Asset Value: 2000+ 1999+ 1998+ 1997+ 1996
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ..................... $ 6.18 $ 6.44 $ 15.67 $ 18.01 $ 12.22
Operating ------- ------- ------- -------- --------
Performance: Investment income--net ................................... .31 .49 1.20 1.34 1.61
Realized and unrealized gain (loss) on investments--net .. (.12) (.20) (6.93) (.32) 5.65
------- ------- ------- -------- --------
Total from investment operations ......................... .19 .29 (5.73) 1.02 7.26
------- ------- ------- -------- --------
Less dividends and distributions:
Investment income--net ................................. (.31) (.55) (1.59) (1.19) (1.47)
Realized gain on investments--net ...................... -- -- -- (2.17) --
In excess of realized gain on investments--net ......... -- -- (1.91) -- --
------- ------- ------- -------- --------
Total dividends and distributions ........................ (.31) (.55) (3.50) (3.36) (1.47)
------- ------- ------- -------- --------
Net asset value, end of period ........................... $ 6.06 $ 6.18 $ 6.44 $ 15.67 $ 18.01
======= ======= ======= ======== ========
Market price per share, end of period .................... $ 5.875 $ 4.875 $ 6.50 $ 13.75 $ 14.75
======= ======= ======= ======== ========
====================================================================================================================================
Total Investment Based on market price per share .......................... 27.60%++ (16.75%) (37.42%) 15.91% 45.94%
Return:** ======= ======= ======= ======== ========
Based on net asset value per share ....................... 3.83%++ 6.51% (45.59%) 8.19% 64.05%
======= ======= ======= ======== ========
====================================================================================================================================
Ratios to Expenses, excluding interest expense ..................... 1.34%* 1.45% 1.15% .82% .80%
Average ======= ======= ======= ======== ========
Net Assets: Expenses ................................................. 2.39%* 2.00% 2.89% 1.47% 2.10%
======= ======= ======= ======== ========
Investment income--net ................................... 9.99%* 8.15% 10.63% 7.39% 8.54%
======= ======= ======= ======== ========
====================================================================================================================================
Supplemental Net assets, end of period (in thousands) ................. $39,335 $40,114 $41,806 $100,174 $115,133
Data: ======= ======= ======= ======== ========
Portfolio turnover ....................................... 51.75% 92.46% 626.23% 578.05% 342.06%
======= ======= ======= ======== ========
====================================================================================================================================
Leverage: Amount of borrowings outstanding, end of period
(in thousands) ......................................... $ 6,458 $ 7,770 $11,525 -- $ 53,706
======= ======= ======= ======== ========
Average amount of borrowings outstanding during
the period (in thousands) .............................. $ 6,517 $ 4,026 $20,540 $ 11,427 $ 26,812
======= ======= ======= ======== ========
Average amount of borrowings per share during the period . $ 1.00 $ .62 $ 3.20 $ 1.79 $ 4.19
======= ======= ======= ======== ========
====================================================================================================================================
</TABLE>
+ Based on average shares outstanding.
++ Aggregate total investment return.
* Annualized.
** Total investment returns based on market value, which can be significantly
greater or lesser than the net asset value, may result in substantially
different returns. Total investment returns exclude the effects of sales
charges.
See Notes to Financial Statements.
10 & 11
<PAGE>
Worldwide DollarVest Fund, Inc., May 31, 2000
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
Worldwide DollarVest Fund, Inc. (the "Fund") is registered under the Investment
Company Act of 1940 as a non-diversified, closed-end management investment
company. The Fund's financial statements are prepared in accordance with
accounting principles generally accepted in the United States of America, which
may require the use of management accruals and estimates. These unaudited
financial statements reflect all adjustments which are, in the opinion of
management, necessary to a fair statement of the results for the interim period
presented. All such adjustments are of a normal recurring nature. The Fund
determines and makes available for publication the net asset value of its common
stock on a weekly basis. The Fund's Common Stock is listed on the New York Stock
Exchange under the symbol WDV.
(a) Valuation of investments--Portfolio securities that are traded on stock
exchanges are valued at the last sale price on the exchange on which such
securities are traded, as of the close of business on the day the securities are
being valued or, lacking any sales, at the last available bid price. Securities
traded in the over-the-counter market are valued at the last available bid price
prior to the time of valuation. In cases where securities are traded on more
than one exchange, the securities are valued on the exchange designated by or
under the authority of the Board of Directors as the primary market. Securities
that are traded both in the over-the-counter market and on a stock exchange are
valued according to the broadest and most representative market. Options written
or purchased are valued at the last sale price in the case of exchange-traded
options. In the case of options traded in the over-the-counter market, valuation
is the last asked price (options written) or the last bid price (options
purchased). Short-term securities are valued at amortized cost, which
approximates market value. Other investments, including futures contracts and
related options, are stated at market value. Securities and assets for which
market value quotations are not available are valued at their fair value as
determined in good faith by or under the direction of the Fund's Board of
Directors.
(b) Derivative financial instruments--The Fund may engage in various portfolio
investment strategies to increase or decrease the level of risk to which the
Fund is exposed more quickly and efficiently than transactions in other types of
instruments. Losses may arise due to changes in the value of the contract or if
the counterparty does not perform under the contract.
o Options--The Fund is authorized to purchase and write call and put options.
When the Fund writes an option, an amount equal to the premium received by the
Fund is reflected as an asset and an equivalent liability. The amount of the
liability is subsequently marked to market to reflect the current market value
of the option written.
When a security is purchased or sold through an exercise of an option, the
related premium paid (or received) is added to (or deducted from) the basis of
the security acquired or deducted from (or added to) the proceeds of the
security sold. When an option expires (or the Fund enters into a closing
transaction), the Fund realizes a gain or loss on the option to the extent of
the premiums received or paid (or gain or loss to the extent the cost of the
closing transaction exceeds the premium paid or received).
Written and purchased options are non-income producing investments.
o Financial futures contracts--The Fund may purchase or sell financial futures
contracts and options on such futures contracts for the purpose of hedging the
market risk on existing securities or the intended purchase of securities.
Futures contracts are contracts for delayed delivery of securities at a specific
future date and at a specific price or yield. Upon entering into a contract, the
Fund deposits and maintains as collateral such initial margin as required by the
exchange on which the transaction is effected. Pursuant to the contract, the
Fund agrees to receive from or pay to the broker an amount of cash equal to the
daily fluctuation in value of the contract. Such receipts or payments are known
as variation margin and are recorded by the Fund as unrealized gains or losses.
When the contract is closed, the Fund records a realized gain or loss 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.
o Interest rate transactions--The Fund is authorized to enter into interest rate
swaps and purchase or sell interest rate caps and floors. In an interest rate
swap, the Fund exchanges with another party their respective commitments to pay
or receive interest on a specified notional principal amount. The purchase of an
interest rate cap (or floor) entitles the purchaser, to the extent that a
specified index exceeds (or falls below) a predetermined interest rate, to
receive payments of interest equal to the difference between the index and the
predetermined rate on a notional principal amount from the party selling such
interest rate cap (or floor).
(c) Income taxes--It is the Fund's policy to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no Federal income tax provision is required. Under the applicable
foreign tax law, a withholding tax may be imposed on interest and capital gains
at various rates.
(d) Security transactions and investment income--Security transactions are
recorded on the dates the transactions are entered into (the trade dates).
Interest income (including amortization of discount) is recognized on the
accrual basis. Realized gains and losses on security transactions are determined
on the identified cost basis.
(e) Dividends and distributions--Dividends from net investment income are
declared and paid monthly. Distribution of capital gains are recorded on the
ex-dividend dates. Distributions in excess of realized capital gains are due
primarily to differing tax treatments for futures transactions and post-October
losses.
(f) Short Sales--When the Fund engages in a short sale, an amount equal to the
proceeds received by the Fund is reflected as an asset and an equivalent
liability. The amount of the liability is subsequently marked to market to
reflect the market value of the short sale. The Fund maintains a segregated
account of securities as collateral for the short sales. The Fund is exposed to
market risk based on the amount, if any, that the market value of the stock
exceeds the market value of the securities in the segregated account.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund Asset
Management, L.P. ("FAM"). The general partner of FAM is Princeton Services, Inc.
("PSI"), an indirect wholly-owned subsidiary of Merrill Lynch & Co., Inc. ("ML &
Co."), which is the limited partner.
FAM is responsible for the management of the Fund's portfolio and provides the
necessary personnel, facilities, equipment and certain other services necessary
to the operations of the Fund. For such services, the Fund pays a monthly fee at
an annual rate of .60% of the Fund's average weekly net assets, plus the
proceeds of any outstanding borrowings used for leverage.
Accounting services are provided to the Fund by FAM at cost.
Certain officers and/or directors of the Fund are officers and/or directors of
FAM, PSI, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the six
months ended May 31, 2000 were $23,806,615 and $25,937,981, respectively.
Net realized gains for the six months ended May 31, 2000 and net unrealized
losses as of May 31, 2000 were as follows:
--------------------------------------------------------------------------------
Realized Unrealized
Gains Losses
--------------------------------------------------------------------------------
Long-term investments .................. $1,300,878 $(972,413)
---------- ---------
Total .................................. $1,300,878 $(972,413)
========== =========
--------------------------------------------------------------------------------
As of May 31, 2000, net unrealized depreciation for Federal income tax purposes
aggregated $972,413, of which $1,502,868 related to appreciated securities and
$2,475,281
12 & 13
<PAGE>
Worldwide DollarVest Fund, Inc., May 31, 2000
NOTES TO FINANCIAL STATEMENTS (concluded)
related to depreciated securities. At May 31, 2000, the aggregate cost of
investments for Federal income tax purposes was $45,597,221.
4. Capital Stock Transactions:
The Fund is authorized to issue 200,000,000 shares of capital stock, par value
$.10 per share. Shares issued and outstanding during the six months ended May
31, 2000 and the year ended November 30, 1999 remained constant.
5. Reverse Repurchase Agreements:
Under a reverse repurchase agreement, the Fund sells securities and agrees to
repurchase them at a mutually agreed upon date and price. For the six months
ended May 31, 2000, the average amount outstanding was approximately $6,517,000
and the daily weighted average interest rate was 6.55%.
6. Capital Loss Carryforward:
At November 30, 1999, the Fund had a net capital loss carryforward of
approximately $52,140,000, of which $25,858,000 expires in 2006 and $26,282,000
expires in 2007. This amount will be available to offset like amounts of any
future taxable gains.
7. Reorganization Plan:
On April 26, 2000, the Fund's Board of Directors approved a plan of
reorganization, whereby Merrill Lynch Americas Income Fund, Inc. would acquire
substantially all the assets and liabilities of the Fund in exchange for newly
issued shares of Merrill Lynch Americas Income Fund, Inc. Merrill Lynch Americas
Income Fund, Inc. is a registered, diversified, open-end management investment
company, and is managed by Merrill Lynch Asset Management, L.P. (MLAM). The
reorganization of the Fund and Merrill Lynch Americas Income Fund, Inc. is
contingent upon the approval of a proposal to change the investment objective
and investment policies of Merrill Lynch Americas Income Fund, Inc. Worldwide
DollarVest Fund, Inc. is a non-diversified, closed-end management investment
company, and is managed by Fund Asset Management, L.P., which is an affiliate of
MLAM.
8. Subsequent Event:
On June 7, 2000, the Fund's Board of Directors declared an ordinary income
dividend to Common Stock shareholders in the amount of $.051604 per share,
payable on June 30, 2000 to shareholders of record as of June 19, 2000.
OFFICERS AND DIRECTORS
Terry K. Glenn, President and Director
Charles C. Reilly, Director
Roscoe Sudarth, Director
Richard R. West, Director
Arthur Zeikel, Director
Edward D. Zinbarg, Director
Vincent T. Lathbury III, Senior Vice President
Joseph T. Monagle Jr., Senior Vice President
Donald C. Burke, Vice President and Treasurer
Ira P. Shapiro, Secretary
Custodian
The Bank of New York
One Wall Street
New York, NY 10286
Transfer Agent
The Bank of New York
101 Barclay Street
New York, NY 10286
NYSE Symbol
WDV
14 & 15
<PAGE>
Worldwide DollarVest Fund, Inc. seeks to provide shareholders with high current
income by investing at least 65% of its total assets in debt securities or
obligations of government and government-related issuers located in foreign
countries and high yield, high risk corporate debt securities of non-US issuers.
The Fund is leveraged to provide shareholders with a potentially higher rate of
return. However, leveraging may exaggerate changes in the net asset value of the
Fund's shares and in the yield on the Fund's portfolio.
Investing in emerging market securities involves a number of risk factors and
special considerations, including restrictions on foreign investments and on
repatriation of capital invested in emerging markets, currency fluctuations, and
potential price volatility and less liquidity of securities traded in emerging
markets. In addition, there may be less publicly available information about the
issuers of securities, and such issuers may not be subject to accounting,
auditing and financial reporting standards and requirements comparable to those
to which US companies are subject. Therefore, the Fund is designed as a
long-term investment for investors capable of assuming the risks of investing in
emerging markets. The Fund should be considered as a vehicle for diversification
and not as a complete investment program. Please refer to the prospectus for
details.
This report, including the financial information herein, is transmitted to the
shareholders of Worldwide DollarVest Fund, Inc. for their information. It is not
a prospectus. Past performance results shown in this report should not be
considered a representation of future performance. Statements and other
information herein are as dated and are subject to change.
Worldwide DollarVest
Fund, Inc.
Box 9011
Princeton, NJ
08543-9011 #16971--5/00
[RECYCLE LOGO] Printed on post-consumer recycled paper
