WORLDWIDE
DOLLARVEST
FUND, INC.
[GRAPHIC OMITTED]
STRATEGIC
Performance
Annual Report
November 30, 1999
<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., November 30, 1999
DEAR SHAREHOLDER
Market Overview
Against a backdrop of strengthening Asian economies, continued economic
uncertainty in much of Latin America, and rising US interest rates, the markets
in which the Fund invests delivered mixed results during the six-month period
ended November 30, 1999. Emerging markets overall continued to rebound from the
lows of 1998, while the high-yield bond market languished. For the six-month
period ended November 30, 1999, emerging mar-kets bonds as measured by the
unmanaged JP Morgan Emerging Markets Bond (EMBI+) Index returned +12.91%, with a
yield spread over US Treasury issues of 944 basis points (9.44%). The best
performers for the period in the emerging market sector were Russia and Brazil.
However, Ecuador, which is restructuring its debt, posted negative returns for
the period.
High-yield markets continued to be unsettled during the last six months,
reflecting ongoing interest rate fears, though the market began to strengthen in
November. Ten-year US Treasury bonds lost 1.61% over the past six months. The
high-yield market, as measured by the unmanaged CS First Boston Global High
Yield Index, performed only slightly better during the period, with a total loss
of 0.71% for the six months. The Index's yield spread relative to ten-year US
Treasury issues widened to 6.01% from 5.64%.
Emerging Market Outlook
We maintained our favorable inter-mediate-term outlook on emerging market bonds.
Our view is supported by the general improvement in world economic conditions,
recovering commodity prices, and indications that economic recessions may be
milder than originally anticipated in many countries. However, our positive
intermediate-term outlook does not prevent short-term concerns that higher
international interest rates could delay the emerging markets economic recovery.
We believe there are some offsetting factors that may partly cushion this
negative impact. A prolonged period of rising interest rates is likely to
originate, or be accompanied by, higher economic activity in the United States
and other industrialized countries, implying higher demand for emerging markets'
manufactured goods and higher commodity prices.
We are keeping a close watch on other short-term risks to emerging markets,
particularly Brazil's fiscal austerity program, its compliance with the
International Monetary Fund program, and its success in establishing the
long-term foundations for sound tax and social security systems that would put
an end to chronic fiscal profligacy. Argentina's foreign exchange convertibility
system will be tested under the new presidential administration and by the sharp
economic slowdown and political pressures against needed fiscal and structural
reforms. Venezuela continues to suffer from political volatility and from
uncertainties in the year 2000 budget. In Mexico, short-term risks appear to be
firmly under control, given its solid export performance, signs of an incipient
domestic activity recovery, realized oil revenues in excess of its budgeted
figures and its contingent planning to ensure a smooth presidential transition
in the year 2000.
High-Yield Outlook
Our long-term outlook for the high-yield market remains optimistic, reflecting
our view that underlying credit fundamentals are gradually improving. Near term,
the market continues to suffer from both technical and fundamental malaise.
Unfavorable technicals include ongoing trading illiquidity, weak cash inflows
and heavy new-issue supply. On the fundamental side, there are higher interest
rates, a high default rate and earnings disappointments.
Fund Performance and Investment Strategy
For the year ended November 30, 1999, the total investment return of Worldwide
DollarVest Fund, Inc. was +6.51%, based on a change in per share net asset value
from $6.44 to $6.18, and assuming reinvestment of $0.553 per share income
dividends. During the same period, the Fund earned $0.510 per share income
dividends, representing a net annualized yield of 8.26%, based on a month-end
per share net asset value of $6.18.
For the six-month period ended November 30, 1999, total investment return of
Worldwide DollarVest Fund, Inc. was +8.56%, based on a change in per share net
asset value from $6.03 to $6.18, and assuming reinvestment of $0.297 per share
income dividends. The blended benchmark, consisting 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 +8.71% for the six-month period ended November 30,
1999. Relative to our benchmark Index, our emerging markets holdings
underperformed while our high-yield holdings outperformed. We continue to favor
diversification into the high-yield market and expect to maintain the Fund's
weighting of approximately two-thirds in emerging market government bonds and
near one-third in the high-yield market.
Though constrained by the small size of the Fund, the emerging markets sector of
the portfolio attempts to approximate the country weightings of the EMBI+ Index
in order to follow the broad trends in emerging markets and to avoid excessive
concentration in one country. Generally, we have overweighted Eurobonds and
longer maturity, lower dollar-priced Brady bonds in an effort to attain the
higher current yields of these bonds, though Brady bonds of varying maturities
represent a larger part of the Index. In this recent rising interest rate
environment, the longer maturity bonds underperformed. However, since we have a
favorable intermediate-term outlook for emerging markets bonds, we believe this
trend should reverse.
We have also underweighted Russia because of the highly speculative nature of
investments in that country. During the six-month period ended November 30,
1999, our position resulted in underperformance relative to the benchmark Index.
Out of all the major country concentrations in the Index, the Fund had a slight
underweighting in Argentina relative to the Index at November 30, 1999, and was
slightly overweighted in Brazil and Mexico.
Our high-yield exposure benefited the Fund during the past six months relative
to the benchmark Index, as the high-yield portion of the portfolio delivered a
modestly positive return compared to a negative return for the high-yield
portion of the benchmark Index. The high-yield sector of the portfolio has a
credit quality distribution similar to that of the benchmark CS First Boston
Global High Yield Index, with a slight bias to better quality credits whose
prices have been hurt with higher interest rates. We have invested in a
diversified selection of industries within the constraint of small fund size.
The largest industry concentration, near 16% of high-yield holdings, is in the
broad communications category, which includes communications, telephony and
wireless communications.
By November 30, 1999, the Fund was leveraged at 16.2% of the portfolio's total
assets, and close to that level throughout the period. We currently intend to
maintain our leverage position at approximately this level in the upcoming
period, reflecting our favorable view of long-term prospects in our markets.
(For a complete explanation of the benefits and risks of leveraging, see page 1
of this report to shareholders.)
In Conclusion
We thank you for your investment in Worldwide DollarVest Fund, Inc., and we look
forward to updating our outlook and strategy with you in our next report to
shareholders.
Sincerely,
/s/Terry K. Glenn
Terry K. Glenn
President and Director
/s/Vincent T. Lathbury III
Vincent T. Lathbury III
Vice President and Portfolio Manager
January 3, 2000
2 & 3
<PAGE>
Worldwide DollarVest Fund, Inc., November 30, 1999
PROXY RESULTS
During the six-month period ended November 30, 1999, Worldwide DollarVest Fund,
Inc.'s shareholders voted on the following proposals. The proposals were
approved at a shareholders' meeting on May 26, 1999. The description of each
proposal and number of shares voted are as follows:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Shares Voted Shares Withheld
For From Voting
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. To elect the Fund's Board of Directors: Donald Cecil 5,854,028 355,188
Terry K. Glenn 5,856,328 352,888
Edward H. Meyer 5,854,028 355,188
Charles C. Reilly 5,856,428 352,788
Richard R. West 5,856,428 352,788
Arthur Zeikel 5,856,428 352,788
Edward D. Zinbarg 5,856,428 352,788
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Shares Voted Shares Voted Shares Voted
For Against Abstain
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
2. To ratify the selection of Deloitte & Touche llp as the independent
auditors of the Fund to serve for the current fiscal year. 6,071,066 102,453 35,697
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE OF INVESTMENTS (in US dollars)
<TABLE>
<CAPTION>
Interest Maturity Percent of
COUNTRY Industry Face Amount Bonds Rate Date Value Net Assets
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
Argentina Sovereign Government US$ 2,800,000 Republic of Argentina 9.75% 9/19/2027 $ 2,329,600 5.8%
Obligations
--------------------------------------------------------------------------------------------------------------------
Total Bonds in Argentina
(Cost--$2,037,750) 2,329,600 5.8
====================================================================================================================================
Brazil Sovereign Government 1,500,000 Republic of Brazil 10.125 5/15/2027 1,196,250 3.0
Obligations 450,000 Republic of Brazil 11.625 4/15/2004 432,000 1.1
--------------------------------------------------------------------------------------------------------------------
Total Bonds in Brazil
(Cost--$1,487,400) 1,628,250 4.1
====================================================================================================================================
Canada Computer Services-- 750,000 Celestica International 10.50 12/31/2006 787,500 1.9
Electronics
--------------------------------------------------------------------------------------------------------------------
Paper & Forest 750,000 Doman Industries Limited 8.75 3/15/2004 631,875 1.6
Products
--------------------------------------------------------------------------------------------------------------------
Total Bonds in Canada
(Cost--$1,286,250) 1,419,375 3.5
====================================================================================================================================
Luxembourg Wireless 500,000 Millicom International Cellular 15.931* 6/01/2006 385,000 1.0
Communications--
International
Paging &
Cellular
--------------------------------------------------------------------------------------------------------------------
Total Bonds in Luxembourg
(Cost--$365,150) 385,000 1.0
====================================================================================================================================
Mexico Banking-- 1,200,000 Bancomex Trust Division 11.25 5/30/2006 1,278,168 3.2
International
--------------------------------------------------------------------------------------------------------------------
Industrial 1,000,000 Petroleos Mexicanos 9.50 9/15/2027 945,000 2.4
--------------------------------------------------------------------------------------------------------------------
Sovereign Government 2,400,000 United Mexican States (c) 11.50 5/15/2026 2,785,200 6.9
Obligations
--------------------------------------------------------------------------------------------------------------------
Total Bonds in Mexico
(Cost--$4,867,850) 5,008,368 12.5
====================================================================================================================================
Netherlands Financial Services 850,000 TPSA Finance BV (a) 7.75 12/10/2008 792,871 2.0
--------------------------------------------------------------------------------------------------------------------
Total Bonds in the Netherlands
(Cost--$843,897) 792,871 2.0
====================================================================================================================================
Panama Sovereign Government 750,000 Republic of Panama 8.875 9/30/2027 622,500 1.5
Obligations
--------------------------------------------------------------------------------------------------------------------
Total Bonds in Panama
(Cost--$573,750) 622,500 1.5
====================================================================================================================================
Philippines Sovereign Government 380,000 Republic of the Philippines 9.875 1/15/2019 380,433 0.9
Obligations
--------------------------------------------------------------------------------------------------------------------
Total Bonds in the Philippines
(Cost--$360,810) 380,433 0.9
====================================================================================================================================
Russia Sovereign Government 600,000 Russian Federation Bonds
Obligations (Regulation S) 11.00 7/24/2018 354,000 0.9
1,000,000 Russian Federation Bonds
(Regulation S) 12.75 6/24/2028 615,000 1.5
--------------------------------------------------------------------------------------------------------------------
Total Bonds in Russia
(Cost--$820,887) 969,000 2.4
====================================================================================================================================
South Korea Banking 700,000 Korea Development Bank 7.125 4/22/2004 680,652 1.7
--------------------------------------------------------------------------------------------------------------------
Sovereign Government 870,000 Republic of Korea 8.875 4/15/2008 922,200 2.3
Obligations
--------------------------------------------------------------------------------------------------------------------
Total Bonds in South Korea
(Cost--$1,554,038) 1,602,852 4.0
====================================================================================================================================
Turkey Sovereign Government 450,000 Republic of Turkey 12.00 12/15/2008 468,000 1.2
Obligations
--------------------------------------------------------------------------------------------------------------------
Total Bonds in Turkey
(Cost--$449,438) 468,000 1.2
====================================================================================================================================
United Kingdom Cable--International 1,500,000 Telewest Communications PLC (a) 9.075* 4/15/2009 915,000 2.3
--------------------------------------------------------------------------------------------------------------------
Wireless 500,000 Orange PLC 8.00 8/01/2008 507,500 1.3
Communications--
International
Paging & Cellular
--------------------------------------------------------------------------------------------------------------------
Total Bonds in the
United Kingdom
(Cost--$1,493,423) 1,422,500 3.6
====================================================================================================================================
United States Airlines 500,000 USAir Inc. 9.625 2/01/2001 498,175 1.2
--------------------------------------------------------------------------------------------------------------------
Broadcasting-- 750,000 Cumulus Media, Inc. 10.375 7/01/2008 781,875 1.9
Radio & Television
--------------------------------------------------------------------------------------------------------------------
</TABLE>
4 & 5
<PAGE>
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
<TABLE>
<CAPTION>
Interest Maturity Percent of
COUNTRY Industry Face Amount Bonds Rate Date Value Net Assets
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
United States Chemicals US$ 1,000,000 Lyondell Chemical Company,
(concluded) Series A 9.625% 5/01/2007 $ 1,030,000 2.6%
--------------------------------------------------------------------------------------------------------------------
Communications 500,000 Charter Communications
Holdings LLC 8.25 4/01/2007 472,500 1.2
--------------------------------------------------------------------------------------------------------------------
Consumer Products 1,000,000 Chattem, Inc., Series A 8.875 4/01/2008 900,000 2.2
--------------------------------------------------------------------------------------------------------------------
Energy 500,000 Ocean Energy Inc., Series B 7.625 7/01/2005 482,500 1.2
--------------------------------------------------------------------------------------------------------------------
Financial Services 500,000 RBF Finance Company 11.00 3/15/2006 525,000 1.3
--------------------------------------------------------------------------------------------------------------------
Gaming 750,000 Venetian Casino/LV Sands (a) 12.25 11/15/2004 626,250 1.6
--------------------------------------------------------------------------------------------------------------------
Health Services 1,250,000 Extendicare Health Services 9.35 12/15/2007 737,500 1.9
500,000 Fresenius Medical
Capital Trust II 7.875 2/01/2008 455,000 1.1
------------ ------
1,192,500 3.0
--------------------------------------------------------------------------------------------------------------------
Hotels 1,000,000 HMH Properties, Inc., Series B 7.875 8/01/2008 905,000 2.3
--------------------------------------------------------------------------------------------------------------------
Industrial 1,000,000 Metal Management Inc. 10.00 5/15/2008 730,000 1.8
--------------------------------------------------------------------------------------------------------------------
Metals & Mining 750,000 Kaiser Aluminum & Chemical Corp. 12.75 2/01/2003 744,375 1.8
--------------------------------------------------------------------------------------------------------------------
Real Estate 500,000 Forest City Enterprises Inc. 8.50 3/15/2008 465,000 1.2
--------------------------------------------------------------------------------------------------------------------
Telecommunications 1,375,000 Nextel Communications, Inc. (a) 11.477* 2/15/2008 972,813 2.4
1,000,000 PSINet, Inc., Series B 10.00 2/15/2005 985,000 2.5
------------ ------
1,957,813 4.9
--------------------------------------------------------------------------------------------------------------------
Telephony-- 750,000 Nextlink Communications Inc. 9.00 3/15/2008 708,750 1.8
Competitive Local
Exchange Carriers
--------------------------------------------------------------------------------------------------------------------
Wireless 675,000 VoiceStream Wireless
Communications Corporation/
VoiceStream Wireles
Holding Company (a) 10.375 11/15/2009 7 03,688 1.7
--------------------------------------------------------------------------------------------------------------------
Total Bonds in the
United States
(Cost--$13,118,288) 12,723,426 31.7
====================================================================================================================================
Venezuela Sovereign Government 2,875,000 Republic of Venezuela 9.25 9/15/2027 1,832,813 4.5
Obligations 800,000 Republic of Venezuela 13.625 8/15/2018 716,000 1.8
--------------------------------------------------------------------------------------------------------------------
Total Bonds in Venezuela
(Cost--$2,583,438) 2,548,813 6.3
====================================================================================================================================
Total Investments in Bonds
(Cost--$31,842,369) 32,300,988 80.5
====================================================================================================================================
Brady Bonds**
====================================================================================================================================
Argentina Sovereign Government 5,900,000 Republic of Argentina,
Obligations Par 'L' (c) 6.00 3/31/2023 3,753,875 9.4
--------------------------------------------------------------------------------------------------------------------
Total Brady Bonds in Argentina
(Cost--$4,016,527) 3,753,875 9.4
====================================================================================================================================
Brazil Sovereign Government 1,500,000 Brazil-DCB 7.00+ 4/15/2012 1,005,000 2.5
Obligations 6,078,182 Republic of Brazil 'C' (c) 8.00+ 4/15/2014 4,133,164 10.3
2,500,000 Republic of Brazil, Discount 6.938+ 4/15/2024 1,750,000 4.4
--------------------------------------------------------------------------------------------------------------------
Total Brady Bonds in Brazil
(Cost--$6,047,819) 6,888,164 17.2
====================================================================================================================================
Bulgaria Sovereign Government 550,000 Republic of Bulgaria 'A',
Obligations Front-Loaded Interest
Rate Reduction Bonds 2.75+ 7/28/2012 385,000 0.9
550,000 Republic of Bulgaria,
Discount 'A' 6.50+ 7/28/2024 429,687 1.1
--------------------------------------------------------------------------------------------------------------------
Total Brady Bonds in Bulgaria
(Cost--$703,959) 814,687 2.0
====================================================================================================================================
Mexico Sovereign Government 1,120,000 United Mexican States 'W-A' 6.25 12/31/2019 867,216 2.2
Obligations 800,000 United Mexican States 'W-B' 6.25 12/31/2019 619,440 1.5
--------------------------------------------------------------------------------------------------------------------
Total Brady Bonds in Mexico
(Cost--$1,445,837) 1,486,656 3.7
====================================================================================================================================
Nigeria Sovereign Government 500,000 Central Bank of Nigeria 'WW 6.25+ 11/15/2020 301,875 0.8
Obligations
--------------------------------------------------------------------------------------------------------------------
Total Brady Bonds in Nigeria
(Cost--$312,146) 301,875 0.8
====================================================================================================================================
Peru Sovereign Government 1,000,000 Republic of Peru,
Obligations Front-Loaded Interest
Rate Reduction Bonds 3.75+ 3/07/2017 580,000 1.4
--------------------------------------------------------------------------------------------------------------------
Total Brady Bonds in Peru
(Cost--$630,804) 580,000 1.4
====================================================================================================================================
Poland Sovereign Government 180,000 Republic of Poland PDI 6.00 10/27/2014 159,300 0.4
Obligations
--------------------------------------------------------------------------------------------------------------------
Total Brady Bonds in Poland
(Cost--$156,750) 159,300 0.4
====================================================================================================================================
Total Investments in Brady Bonds
(Cost--$13,313,842) 13,984,557 34.9
====================================================================================================================================
Shares Held Warrants
====================================================================================================================================
Nigeria Sovereign Government 500 Nigeria Oil (b) 0 0.0
Obligations
--------------------------------------------------------------------------------------------------------------------
Total Investments in Warrants
(Cost--$0) 0 0.0
====================================================================================================================================
Face Amount Short-Term Securities
====================================================================================================================================
United States Commercial US$ 348,000 General Motors Acceptance Corp. 5.75 12/01/1999 348,000 0.9
Paper***
--------------------------------------------------------------------------------------------------------------------
Total Investments in Short-Term
Securities (Cost--$348,000) 348,000 0.9
====================================================================================================================================
Total Investments (Cost--$45,504,211) 46,633,545 116.3
Liabilities in Excess of Other Assets (6,519,376) (16.3)
------------ ------
Net Assets $ 40,114,169 100.0%
============ ======
====================================================================================================================================
</TABLE>
(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.
+ 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.
See Notes to Financial Statements.
6 & 7
<PAGE>
Worldwide DollarVest Fund, Inc., November 30, 1999
STATEMENT OF ASSETS, LIABILITIES AND CAPITAL
<TABLE>
<CAPTION>
As of November 30, 1999
<S> <C> <C> <C>
=============================================================================================================================
Assets: Investments, at value (identified cost--$45,504,211) ............... $ 46,633,545
Cash ............................................................... 95,198
Interest receivable ................................................ 1,344,576
Prepaid expenses ................................................... 28,540
------------
Total assets ....................................................... 48,101,859
------------
=============================================================================================================================
Liabilities: Payables:
Reverse repurchase agreements .................................... $ 7,769,714
Interest on reverse repurchase agreements ........................ 114,504
Dividends to shareholders ........................................ 43,181
Investment adviser ............................................... 1,586 7,928,985
-----------
Accrued expenses ................................................... 58,705
------------
Total liabilities .................................................. 7,987,690
------------
=============================================================================================================================
Net Assets: Net assets ......................................................... $ 40,114,169
============
=============================================================================================================================
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 ............................... 309,405
Accumulated realized capital losses on investments--net ............ (40,223,923)
Accumulated distributions in excess of realized capital
gains on investments--net ........................................ (12,182,911)
Unrealized appreciation on investments--net ........................ 1,129,334
------------
Total--Equivalent to $6.18 per share based on 6,494,144
shares of capital stock issued and outstanding
(market price--$4.875) ........................................... $ 40,114,169
============
=============================================================================================================================
</TABLE>
See Notes to Financial Statements.
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
For the Year Ended November 30, 1999
<S> <C> <C> <C>
=============================================================================================================================
Investment Income: Interest and amortization of premium and discount earned $ 4,000,658
=============================================================================================================================
Expenses: Investment advisory fees ................................................ $ 260,878
Interest on reverse repurchase agreements ............................... 218,261
Accounting services ..................................................... 95,303
Professional fees ....................................................... 58,073
Transfer agent fees ..................................................... 41,613
Printing and shareholder reports ........................................ 39,201
Directors' fees and expenses ............................................ 35,132
Listing fees ............................................................ 16,524
Custodian fees .......................................................... 15,199
Pricing services ........................................................ 2,317
Amortization of organization expenses ................................... 831
Other ................................................................... 4,912
----------
Total expenses 788,244
-----------
Investment income--net .................................................. 3,212,414
-----------
=============================================================================================================================
Realized & Unrealized Realized loss on investments--net (22,303,554)
Gain (Loss) on Change in unrealized appreciation/depreciation on investments--net 20,989,934
Investments--Net -----------
Net Increase in Net Assets Resulting from Operations $ 1,898,794
===========
=============================================================================================================================
</TABLE>
See Notes to Financial Statements.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the Year Ended
November 30,
-------------------------------
Increase (Decrease) in Net Assets: 1999 1998
====================================================================================================================================
<S> <C> <C>
Operations: Investment income--net ................................................. $ 3,212,414 $ 7,686,189
Realized loss on investments--net ...................................... (22,303,554) (26,142,101)
Change in unrealized appreciation/depreciation on investments--net ..... 20,989,934 (18,452,841)
------------ ------------
Net increase (decrease) in net assets resulting from operations ........ 1,898,794 (36,908,753)
------------ ------------
====================================================================================================================================
Dividends & Investment income--net ................................................. (3,591,105) (10,161,119)
Distributions to In excess of realized gain on investments--net -- (12,182,921)
Shareholders: ------------ ------------
Net decrease in net assets resulting from dividends
and distributions to shareholders .................................... (3,591,105) (22,344,040)
------------ ------------
====================================================================================================================================
Capital Stock Value of shares issued to Common Stock shareholders
Transactions: in reinvestment of dividends and distributions ....................... -- 885,633
------------ ------------
====================================================================================================================================
Net Assets: Total decrease in net assets ........................................... (1,692,311) (58,367,160)
Beginning of year ...................................................... 41,806,480 100,173,640
------------ ------------
End of year* ........................................................... $ 40,114,169 $ 41,806,480
============ ============
====================================================================================================================================
*Undistributed investment income--net ................................... $ 309,405 $ 703,793
============ ============
====================================================================================================================================
</TABLE>
See Notes to Financial Statements.
8 & 9
<PAGE>
Worldwide DollarVest Fund, Inc., November 30, 1999
STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
For the Year Ended November 30, 1999
===================================================================================================================================
<S> <C> <C>
Cash Provided by Net increase in net assets resulting from operations ................................. $ 1,898,794
Operating Activities: Adjustments to reconcile net increase in net assets
resulting from operations to net cash
provided by operating activities:
Decrease in receivables ............................................................ 959,013
Increase in other assets ........................................................... (25,391)
Decrease in other liabilities ...................................................... (3,018,303)
Realized and unrealized loss on investments--net ................................... 1,313,620
Amortization of premium and discount ............................................... (338,990)
------------
Net cash provided by operating activities ............................................ 788,743
------------
===================================================================================================================================
Cash Provided by Proceeds from sales of long-term investments ......................................... 44,267,207
Investing Activities: Purchases of long-term investments ................................................... (39,798,042)
Purchases of short-term investments .................................................. (187,586,281)
Proceeds from sales and maturities of short-term investments ......................... 187,276,000
------------
Net cash provided by investing activities ............................................ 4,158,884
------------
===================================================================================================================================
Cash Used for Cash receipts from borrowings ........................................................ 10,180,578
Financing Activities: Cash payments on borrowings .......................................................... (11,485,083)
Dividends and distributions paid to shareholders ..................................... (3,547,924)
------------
Net cash used for financing activities ............................................... (4,852,429)
------------
===================================================================================================================================
Cash: Net increase in cash ................................................................. 95,198
Cash at beginning of year ............................................................ --
------------
Cash at end of year .................................................................. $ 95,198
============
===================================================================================================================================
Cash Flow Cash paid for interest ............................................................... $ 150,604
Information: ============
===================================================================================================================================
</TABLE>
See Notes to Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
The following per share data and ratios have been derived
from information provided in the financial statements. For the Year Ended November 30,
-----------------------------------------------------
Increase (Decrease) in Net Asset Value: 1999+ 1998+ 1997+ 1996 1995
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of year........................ $ 6.44 $ 15.67 $ 18.01 $ 12.22 $ 11.90
Operating -------- -------- -------- -------- --------
Performance: Investment income--net.................................... .49 1.20 1.34 1.61 1.33
Realized and unrealized gain (loss) on investments--net... (.20) (6.93) (.32) 5.65 .24
-------- -------- -------- -------- --------
Total from investment operations.......................... (.29) (5.73) 1.02 7.26 1.57
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net.................................. (.55) (1.59) (1.19) (1.47) (1.25)
Realized gain on investments--net....................... -- -- (2.17) -- --
In excess of realized gain on investments--net.......... -- (1.91) -- -- --
-------- -------- -------- -------- --------
Total dividends and distributions......................... (.55) (3.50) (3.36) (1.47) (1.25)
-------- -------- -------- -------- --------
Net asset value, end of year.............................. $ 6.18 $ 6.44 $ 15.67 $ 18.01 $ 12.22
======== ======== ======== ======== ========
Market price per share, end of year....................... $ 4.875 $ 6.50 $ 13.75 $ 14.75 $ 11.25
======== ======== ======== ======== ========
===================================================================================================================================
Total Investment Based on market price per share........................... (16.75%) (37.42%) 15.91% 45.94% 14.88%
Return:** ======== ======== ======== ======== ========
Based on net asset value per share........................ (6.51%) (45.59%) 8.19% 64.05% 15.35%
======== ======== ======== ======== ========
===================================================================================================================================
Ratios to Expenses, excluding interest expense...................... 1.45% 1.15% .82% .80% .97%
Average ======== ======== ======== ======== ========
Net Assets: Expenses.................................................. 2.00% 2.89% 1.47% 2.10% 1.83%
======== ======== ======== ======== ========
Investment income--net ................................... 8.15% 10.63% 7.39% 8.54% 10.48%
======== ======== ======== ======== ========
===================================================================================================================================
Supplemental Net assets, end of year (in thousands).................... $ 40,114 $ 41,806 $100,174 $115,133 $ 78,139
Data: ======== ======== ======== ======== ========
Portfolio turnover........................................ 92.46% 626.23% 578.05% 342.06% 183.01%
======== ======== ======== ======== ========
===================================================================================================================================
Leverage: Amount of borrowings outstanding, end of year
(in thousands).......................................... $ 7,770 $ 11,525 -- $ 53,706 $ 25,456
======== ======== ======== ======== ========
Average amount of borrowings outstanding
during the year (in thousands).......................... $ 4,026 $ 20,540 $ 11,427 $ 26,812 $ 10,829
======== ======== ======== ======== ========
Average amount of borrowings per share during
the year............................................... $ .62 $ 3.20 $ 1.79 $ 4.19 $ 1.69
======== ======== ======== ======== ========
===================================================================================================================================
</TABLE>
+ Based on average shares outstanding.
* 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., November 30, 1999
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
generally accepted accounting principles, which may require the use of
management accruals and estimates. 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
strategies to seek to increase its return by hedging its portfolio against
adverse movements in the debt markets. 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) Deferred organization expenses--Deferred organization expenses are amortized
on a straight-line basis over a period not exceeding five years.
(f) 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.
(g) 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.
(h) Reclassification--Generally accepted accounting prin-ciples require that
certain components of net assets be adjusted to reflect permanent differences
between financial and tax reporting. Accordingly, current year's permanent
book/tax differences of $15,697 have been reclassified between undistributed net
investment income and accumulated net realized capital losses. These
reclassifications have no effect on net assets or net asset value per share.
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
year ended November 30, 1999 were $39,291,486 and $42,910,732, respectively.
Net realized losses for the year ended November 30, 1999 and net unrealized
gains as of November 30, 1999 were as follows:
- --------------------------------------------------------------------------------
Realized Unrealized
Losses Gains
- --------------------------------------------------------------------------------
Long-term investments ............... $(22,303,554) $ 1,129,334
------------ ------------
Total ............................... $(22,303,554) $ 1,129,334
============ ============
- --------------------------------------------------------------------------------
As of November 30, 1999, net unrealized appreciation for Federal income tax
purposes aggregated $750,285, of which $1,945,720 related to appreciated
securities and $1,195,435 related to depreciated securities. At November 30,
1999, the aggregate cost of investments for Federal income tax purposes was
$45,883,260.
12 & 13
<PAGE>
NOTES TO FINANCIAL STATEMENTS (concluded)
Worldwide DollarVest Fund, Inc., November 30, 1999
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 year ended November 30,
1999 remained constant and during the year ended November 30, 1998 increased by
101,182 as a result of dividend reinvestment.
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 year ended
November 30, 1999, the average amount outstanding was approximately $4,026,000
and the daily weighted average interest rate was 5.42%.
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. Subsequent Event:
On December 1, 1999, the Fund's Board of Directors declared an ordinary income
dividend to Common Stock shareholders in the amount of $.050060 per share
payable on December 17, 1999 to shareholders of record as of December 10, 1999.
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders,
Worldwide DollarVest Fund, Inc.:
We have audited the accompanying statement of assets, liabilities and capital,
including the schedule of investments, of Worldwide DollarVest Fund, Inc. as of
November 30, 1999, the related statements of operations for the year then ended,
changes in net assets for each of the years in the two-year period then ended,
and cash flows for the year then ended, and the financial highlights for each of
the years in the five-year period then ended. These financial statements and the
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and the
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and the financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at November
30, 1999 by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of Worldwide DollarVest
Fund, Inc. as of November 30, 1999, the results of its operations, the changes
in its net assets, its cash flows, and the financial highlights for the
respective stated periods in conformity with generally accepted accounting
principles.
Deloitte & Touche LLp
Princeton, New Jersey
January 5, 2000
IMPORTANT TAX INFORMATION (unaudited)
Of the net investment income distributions paid by Worldwide DollarVest Fund,
Inc. during its taxable year ended November 30, 1999, 75.55% represents income
from foreign sources. There were no foreign taxes associated with this income.
Additionally, there were no capital gain distributions paid by the Fund during
the year.
Please retain this information for your records.
OFFICERS AND DIRECTORS
Terry K. Glenn, President and Director
Charles C. Reilly, 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
- --------------------------------------------------------------------------------
Donald Cecil and Edward H. Meyer, Directors of Worldwide DollarVest Fund, Inc.
have recently retired. The Fund's Board of Directors wishes Mr. Cecil and Mr.
Meyer well in their retirements.
- --------------------------------------------------------------------------------
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>
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, circular or representation intended for use in the purchase of
shares of the Fund or any securities mentioned in the report. 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--11/99
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