UNITED STATES | |||
SECURITIES AND EXCHANGE COMMISSION | |||
Washington, D.C. 20549 | |||
FORM N-CSR | |||
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT | |||
INVESTMENT COMPANIES | |||
Investment Company Act file number 811-7512 | |||
DREYFUS PREMIER WORLDWIDE GROWTH FUND, INC. | |||
(Exact name of Registrant as specified in charter) | |||
c/o The Dreyfus Corporation | |||
200 Park Avenue | |||
New York, New York 10166 | |||
(Address of principal executive offices) | (Zip code) | ||
Mark N. Jacobs, Esq. | |||
200 Park Avenue | |||
New York, New York 10166 | |||
(Name and address of agent for service) | |||
Registrant's telephone number, including area code: | (212) 922-6000 | ||
Date of fiscal year end: | 10/31 | ||
Date of reporting period: | 04/30/04 |
SSL-DOCS2 70134233v1
FORM N-CSR | ||
Item 1. | Reports to Stockholders. |
The views expressed in this report reflect those of the portfolio |
manager only through the end of the period covered and do not |
necessarily represent the views of Dreyfus or any other person in |
the Dreyfus organization. Any such views are subject to change at |
any time based upon market or other conditions and Dreyfus dis- |
claims any responsibility to update such views.These views may not |
be relied on as investment advice and, because investment decisions |
for a Dreyfus fund are based on numerous factors, may not be relied |
on as an indication of trading intent on behalf of any Dreyfus fund. |
Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value |
Contents
THE FUND
2 | Letter from the Chairman |
3 | Discussion of Fund Performance |
6 | Statement of Investments |
9 | Statement of Assets and Liabilities |
10 | Statement of Operations |
11 | Statement of Changes in Net Assets |
13 | Financial Highlights |
18 | Notes to Financial Statements |
FOR MORE INFORMATION | |
Back Cover |
Dreyfus Premier |
Worldwide Growth Fund, Inc. |
The Fund
LETTER FROM THE CHAIRMAN
Dear Shareholder:
This semiannual report for Dreyfus Premier Worldwide Growth Fund, Inc. covers the six-month period from November 1, 2003, through April 30, 2004. Inside, you’ll find valuable information about how the fund was managed during the reporting period, including a discussion with the fund’s portfolio manager, Fayez Sarofim, of Fayez Sarofim & Co., the fund’s sub-investment adviser.
Positive economic data continued to accumulate in many of the world’s developed and emerging markets during the reporting period. Recovering economies in China and the United States have led to better business conditions for many exporters, including suppliers of energy products and raw materials used in manufacturing.At the same time, relatively low interest rates and robust consumer spending have supported most local economies. As a result, companies around the world have generally enjoyed higher earnings and stock prices.
Despite these encouraging developments, we continue to believe that investors should be aware of potential risks that could lead to heightened volatility or a stock market correction. Chief among them, in our view, are a possible acceleration of inflation, an unexpected interruption of global demand for energy and commodities, and the chance that terrorism could cause renewed instability in international markets. As always, we encourage you to speak regularly with your financial advisor, who may be in the best position to suggest ways to position your portfolio for the opportunities and challenges of today’s financial markets.
Thank you for your continued confidence and support.
Sincerely,
Stephen E. Canter |
Chairman and Chief Executive Officer |
The Dreyfus Corporation |
May 17, 2004 |
2
DISCUSSION OF FUND PERFORMANCE
Fayez Sarofim, Portfolio Manager
Fayez Sarofim & Co., Sub-Investment Adviser
How did Dreyfus Premier Worldwide Growth Fund, Inc. perform relative to its benchmark?
For the six-month period ended April 30, 2004, the fund produced total returns of 8.89% for Class A shares, 8.44% for Class B shares, 8.50% for Class C shares, 9.04% for Class R shares and 8.75% for Class T shares.1 For the same period, the fund’s benchmark, the Morgan Stanley Capital International World Index (“MSCI World Index”), provided an 8.43% total return.2
The global stock market proved to be relatively volatile during the reporting period, gaining value as economies in the United States, Japan and Asia strengthened before declining sharply in April, when concerns over potentially higher U.S. short-term interest rates took their toll.The fund produced slightly higher returns than the MSCI World Index, primarily because its holdings of leading blue-chip companies held up better than the average company during April’s downturn.
What is the fund’s investment approach?
The fund invests primarily in large, well-established, multinational growth companies that we believe are well-positioned to weather difficult economic climates and thrive during favorable times.We focus on purchasing growth stocks at a price we consider to be justified by a company’s fundamentals.The result is a portfolio of stocks of prominent companies selected for their sustained patterns of profitability, strong balance sheets, expanding global presence and above-average growth potential.
The fund also pursues a buy-and-hold investment strategy, which is based on remaining fully invested and targeting long-term growth rather than short-term profit. In following this strategy, we typically buy and sell relatively few stocks during the course of the year, which may help to reduce investors’ tax liabilities and the fund’s trading costs.3 During the reporting period, the fund’s portfolio turnover rate was 0%.4
The Fund
3
DISCUSSION OF FUND PERFORMANCE (continued)
What other factors influenced the fund’s performance?
During the early part of the reporting period, the fund’s performance lagged that of the MSCI World Index as smaller, lower-quality companies continued to post higher returns than the larger, well-established companies in which the fund invests. In this environment, companies in the technology sector and other economically sensitive areas fared better than companies that historically have produced steady, consistent returns in good and bad economic times.
Market sentiment appeared to shift in February 2004, when global investors turned their attention to higher-quality companies that tend to perform well in the later stages of economic recoveries. In March, terrorism in Madrid briefly derailed the market’s renewed preference for higher-quality companies, but the trend resumed in April after the U.S. Department of Labor released statistics showing a dramatic increase in new jobs. Investors became concerned that rising employment and other inflationary pressures might cause the U.S. Federal Reserve Board (the “Fed”) to begin raising short-term interest rates, which could adversely affect companies that export goods and services to the United States.
In this changing market environment, the fund enjoyed particularly robust results from its stock selection strategy in the health care area. For example, multinational pharmaceutical giant Roche Holdings Ltd., ADR announced stronger than expected earnings and appeared to benefit from a relatively productive research and development effort.
The fund also received strong contributions to performance from its energy holdings. Leading integrated oil producers such as Exxon Mobil, BP, ADR and ChevronTexaco benefited from higher oil and gas prices and the appearance of long-dormant inflationary pressures. However, we sold the fund’s position in The Royal Dutch Shell Group due to allegations of mismanagement in the way it estimated oil reserves.
Other holdings supporting the fund’s relative performance during the reporting period included food and tobacco giant Altria Group, luxury good purveyor Christian Dior and diversified media conglomerate News Corp.
4
A few of the fund’s holdings detracted from its performance. By far the largest negative contribution came from semiconductor manufacturer Intel, whose stock price fell sharply on inventory-related concerns in Asia. Retailer Wal-Mart Stores and U.S. mortgage finance enterprise Fannie Mae also declined during the reporting period when consumer spending and mortgage refinancing activity softened.
What is the fund’s current strategy?
As long-term investors, we have continued to maintain our buy-and-hold approach to investing in some of the world’s largest and most consistently successful companies. Nonetheless, we remain aware of economic conditions, including current expectations that the Fed may begin to raise interest rates sometime this year. In our judgment, dividend-paying companies that have demonstrated an ability to achieve consistent earnings growth in a variety of economic climates, including those characterized by rising short-term interest rates, are likely to command investors’ attention as the economic cycle unfolds.
May 17, 2004
1 | Total return includes reinvestment of dividends and any capital gains paid, and does not take into consideration the maximum initial sales charges in the case of Class A and Class T shares, or the applicable contingent deferred sales charges imposed on redemptions in the case of Class B and Class C shares. Had these charges been reflected, returns would have been lower. Past performance is no guarantee of future results. Share price and investment return fluctuate such that upon redemption, fund shares may be worth more or less than their original cost. |
2 | SOURCE: LIPPER INC. — Reflects reinvestment of net dividends and, where applicable, capital gain distributions.The Morgan Stanley Capital International (MSCI) World Index is an unmanaged index of global stock market performance, including the United States, Canada, Europe, Australia, New Zealand and the Far East. |
3 | Achieving tax efficiency is not a part of the fund’s investment objective, and there can be no guarantee that the fund will achieve any particular level of taxable distributions in future years. In periods when the manager has to sell significant amounts of securities (e.g., during periods of significant net redemptions or changes in index components) funds can be expected to be less tax efficient than during periods of more stable market conditions and asset flows. |
4 | Portfolio turnover rates are subject to change. Portfolio turnover rates alone do not automatically result in high or low distribution levels.There can be no guarantee that the fund will generate any specific level of distributions annually. |
The Fund
5
STATEMENT OF INVESTMENTS | |||||
April 30, 2004 (Unaudited) | |||||
Common Stocks—97.9% | Shares | Value ($) | |||
Banking—.6% | |||||
Fannie Mae | 78,625 | 5,403,110 | |||
Basic Materials—1.6% | |||||
L’Air Liquide, ADR | 400,925 | 14,182,722 | |||
Yara International, ADR | 142,400 | 1,005,943 | |||
15,188,665 | |||||
Capital Goods—4.1% | |||||
Emerson Electric | 125,100 | 7,533,522 | |||
General Electric | 771,072 | 23,093,606 | |||
Norsk Hydro, ADR | 142,400 | 8,338,944 | |||
38,966,072 | |||||
Consumer Durables & Apparel—4.0% | |||||
Christian Dior | 550,000 | 34,547,975 | |||
SONY, ADR | 96,600 | 3,709,440 | |||
38,257,415 | |||||
Consumer Staples—4.1% | |||||
Wal-Mart Stores | 315,022 | 17,956,254 | |||
Walgreen | 625,000 | 21,550,000 | |||
39,506,254 | |||||
Diversified Financials—10.6% | |||||
American Express | 342,850 | 16,782,507 | |||
Citigroup | 603,284 | 29,011,928 | |||
Deutsche Bank | 132,300 | 10,852,569 | |||
Eurazeo | 316,123 | 21,676,080 | |||
J.P. Morgan Chase & Co. | 299,100 | 11,246,160 | |||
UBS | 173,000 | 12,295,195 | |||
101,864,439 | |||||
Energy—11.8% | |||||
BP, ADR | 520,000 | 27,508,000 | |||
ChevronTexaco | 180,400 | 16,506,600 | |||
Exxon Mobil | 1,009,508 | 42,954,565 | |||
Total, ADR | 280,158 | 25,808,155 | |||
112,777,320 | |||||
Food, Beverage & Tobacco—18.3% | |||||
Altria Group | 900,200 | 49,853,076 | |||
Anheuser-Busch Cos. | 25,000 | 1,281,000 | |||
Coca-Cola | 458,100 | 23,166,117 | |||
6 |
Common Stocks (continued) | Shares | Value ($) | ||
Food, Beverage & Tobacco (continued) | ||||
Diageo, ADR | 403,500 | 21,990,750 | ||
Groupe Danone, ADR | 634,700 | 21,325,920 | ||
LVMH Moet Hennessy Louis Vuitton | 220,175 | 15,519,365 | ||
Nestle, ADR | 450,600 | 28,570,856 | ||
PepsiCo | 241,675 | 13,168,871 | ||
174,875,955 | ||||
Health Care—17.1% | ||||
Abbott Laboratories | 300,300 | 13,219,206 | ||
Eli Lilly & Co. | 213,700 | 15,773,197 | ||
Johnson & Johnson | 498,525 | 26,935,306 | ||
Medco Health Solutions | 51,204 | 1,812,622 | ||
Merck & Co. | 310,582 | 14,597,354 | ||
Novartis, ADR | 150,000 | 6,720,000 | ||
Pfizer | 1,358,754 | 48,589,043 | ||
Roche, ADR | 339,200 | 35,608,799 | ||
163,255,527 | ||||
Hotels, Restaurants & Leisure—.8% | ||||
McDonald’s | 284,800 | 7,755,104 | ||
Household & Personal Products—5.4% | ||||
Estee Lauder Cos., Cl. A | 47,500 | 2,171,225 | ||
L’Oreal, ADR | 1,850,000 | 28,732,813 | ||
Procter & Gamble | 199,400 | 21,086,550 | ||
51,990,588 | ||||
Insurance—5.1% | ||||
American International Group | 28,000 | 2,006,200 | ||
Assicurazioni Generali | 601,900 | 15,873,608 | ||
Berkshire Hathaway, Cl. A | 95 a | 8,872,050 | ||
Marsh & McLennan Cos. | 387,600 | 17,480,760 | ||
Zurich Financial Services | 31,500 | 4,980,333 | ||
49,212,951 | ||||
Media—4.5% | ||||
McGraw-Hill Cos. | 259,900 | 20,495,714 | ||
Pearson | 1,106,944 | 12,916,534 | ||
Time Warner | 395,215 a | 6,647,516 | ||
Viacom, Cl. B | 81,227 | 3,139,424 | ||
43,199,188 | ||||
The Fund |
7
STATEMENT OF INVESTMENTS (Unaudited) (continued)
Common Stocks (continued) | Shares | Value ($) | ||||
Retail—.0% | ||||||
Home Depot | 4,505 | 158,531 | ||||
Technology—9.3% | ||||||
Intel | 2,000,941 | 51,484,212 | ||||
International Business Machines | 126,625 | 11,164,526 | ||||
Microsoft | 1,025,600 | 26,634,832 | ||||
89,283,570 | ||||||
Transportation—.6% | ||||||
United Parcel Service, Cl. B | 80,000 | 5,612,000 | ||||
Total Common Stocks | ||||||
(cost $ | 726,092,992) | 937,306,689 | ||||
Preferred Stocks—2.2% | ||||||
Media; | ||||||
News Corporation, ADR | ||||||
(cost $ | 13,417,134) | 627,200 | 21,168,000 | |||
Total Investments (cost $ | 739,510,126) | 100.1% | 958,474,689 | |||
Liabilities, Less Cash and Receivables | (.1%) | (1,083,807) | ||||
Net Assets | 100.0% | 957,390,882 |
a Non-income producing.
See notes to financial statement
8
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2004 (Unaudited) | ||||||||
Cost | Value | |||||||
Assets ($): | ||||||||
Investments in securities—See Statement of Investments | 739,510,126 | 958,474,689 | ||||||
Dividends receivable | 2,223,687 | |||||||
Receivable for investment securities sold | 1,496,183 | |||||||
Receivable for shares of Common Stock subscribed | 116,640 | |||||||
Prepaid expenses | 94,118 | |||||||
962,405,317 | ||||||||
Liabilities ($): | ||||||||
Due to The Dreyfus Corporation and affiliates—Note 3(a) | 1,272,169 | |||||||
Cash overdraft due to Custodian | 108,804 | |||||||
Bank Loan payable—Note 2 | 2,000,000 | |||||||
Payable for shares of Common Stock redeemed | 1,252,269 | |||||||
Accrued expenses | 381,193 | |||||||
5,014,435 | ||||||||
Net Assets ( | $) | 957,390,882 | ||||||
Composition of Net Assets ($): | ||||||||
Paid-in capital | 889,923,157 | |||||||
Accumulated distributions in excess of investment income—net | (6,605,358) | |||||||
Accumulated net realized gain (loss) on investments | (144,887,653) | |||||||
Accumulated net unrealized appreciation (depreciation) | ||||||||
on investments and foreign currency transactions | 218,960,736 | |||||||
Net Assets ( | $) | 957,390,882 | ||||||
Net Asset Value Per Share | ||||||||
Class A | Class B | Class C | Class R | Class T | ||||
Net Assets ($) | 444,501,574 | 396,286,233 | 108,835,747 | 3,738,179 | 4,029,149 | |||
Shares Outstanding | 13,906,853 | 13,106,509 | 3,629,894 | 116,069 | 127,367 | |||
Net Asset Value | ||||||||
Per Share ( | $) | 31.96 | 30.24 | 29.98 | 32.21 | 31.63 | ||
See notes to financial statements. |
The Fund
9
STATEMENT OF OPERATIONS | |||
Six Months Ended April 30, 2004 (Unaudited) | |||
Investment Income ( | $): | ||
Income: | |||
Cash dividends (net of $138,414 foreign taxes withheld at source): | 8,702,340 | ||
Unaffilliated issuers | 8,699,163 | ||
Affiliated issuers | 3,177 | ||
Total Income | 8,702,340 | ||
Expenses: | |||
Investment advisory fee—Note 3(a) | 3,666,950 | ||
Shareholder servicing costs—Note 3(c) | 2,239,622 | ||
Distribution fees—Note 3(b) | 2,027,403 | ||
Custodian fees | 84,295 | ||
Prospectus and shareholders’ reports | 62,432 | ||
Registration fees | 52,317 | ||
Professional fees | 28,288 | ||
Directors’ fees and expenses—Note 3(d) | 14,602 | ||
Loan commitment fees—Note 2 | 6,535 | ||
Interest expense—Note 2 | 4,991 | ||
Miscellaneous | 19,413 | ||
Total Expenses | 8,206,848 | ||
Investment Income—Net | 495,492 | ||
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): | |||
Net realized gain (loss) on investments and foreign currency transactions | (2,998,542) | ||
Net unrealized appreciation (depreciation) on | |||
investments and foreign currency transactions | 83,241,836 | ||
Net Realized and Unrealized Gain (Loss) on Investments | 80,243,294 | ||
Net Increase in Net Assets Resulting from Operations | 80,738,786 | ||
See notes to financial statements. |
10
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended | ||||
April 30, 2004 | Year Ended | |||
(Unaudited) | October 31, 2003 | |||
Operations ($): | ||||
Investment income—net | 495,492 | 2,825,614 | ||
Net realized gain (loss) on investments | (2,998,542) | (28,233,277) | ||
Net unrealized appreciation | ||||
(depreciation) on investments | 83,241,836 | 155,757,617 | ||
Net Increase (Decrease) in Net Assets | ||||
Resulting from Operations | 80,738,786 | 130,349,954 | ||
Dividends to Shareholders from ($): | ||||
Investment income—net: | ||||
Class A shares | (5,283,992) | — | ||
Class B shares | (2,204,801) | — | ||
Class C shares | (722,946) | — | ||
Class R shares | (47,144) | — | ||
Class T shares | (40,006) | — | ||
Total Dividends | (8,298,889) | — | ||
Capital Stock Transactions ($): | ||||
Net proceeds from shares sold: | ||||
Class A shares | 70,395,473 | 404,340,914 | ||
Class B shares | 10,707,946 | 16,866,319 | ||
Class C shares | 4,429,338 | 7,629,695 | ||
Class R shares | 2,034,202 | 5,081,127 | ||
Class T shares | 515,399 | 3,928,024 | ||
Dividends reinvested: | ||||
Class A shares | 4,505,358 | — | ||
Class B shares | 1,730,761 | — | ||
Class C shares | 438,382 | — | ||
Class R shares | 46,763 | — | ||
Class T shares | 39,262 | — | ||
Cost of shares redeemed: | ||||
Class A shares | (50,202,422) | (388,101,708) | ||
Class B shares | (82,367,682) | (155,427,794) | ||
Class C shares | (15,601,040) | (28,149,055) | ||
Class R shares | (1,842,903) | (5,370,598) | ||
Class T shares | (189,590) | (3,574,855) | ||
Increase (Decrease) in Net Assets | ||||
from Capital Stock Transactions | (55,360,753) | (142,777,931) | ||
Total Increase (Decrease) in Net Assets | 17,079,144 | (12,427,977) | ||
Net Assets ($): | ||||
Beginning of Period | 940,311,738 | 952,739,715 | ||
End of Period | 957,390,882 | 940,311,738 | ||
Undistributed (distribution in excess of ) | ||||
investment income—net | (6,605,358) | 1,198,039 | ||
The Fund | 11 |
STATEMENT OF CHANGES IN NET ASSETS (continued) | ||||
Six Months Ended | ||||
April 30, 2004 | Year Ended | |||
(Unaudited) | October 31, 2003 | |||
Capital Share Transactions: | ||||
Class Aa | ||||
Shares sold | 2,210,769 | 15,538,884 | ||
Shares issued for dividends reinvested | 147,717 | — | ||
Shares redeemed | (1,578,373) | (14,939,231) | ||
Net Increase (Decrease) in Shares Outstanding | 780,113 | 599,653 | ||
Class Ba | ||||
Shares sold | 356,577 | 670,615 | ||
Shares issued for dividends reinvested | 59,784 | — | ||
Shares redeemed | (2,736,923) | (6,207,248) | ||
Net Increase (Decrease) in Shares Outstanding | (2,320,562) | (5,536,633) | ||
Class C | ||||
Shares sold | 148,814 | 305,860 | ||
Shares issued for dividends reinvested | 15,275 | — | ||
Shares redeemed | (523,352) | (1,140,897) | ||
Net Increase (Decrease) in Shares Outstanding | (359,263) | (835,037) | ||
Class R | ||||
Shares sold | 62,074 | 190,918 | ||
Shares issued for dividends reinvested | 1,523 | — | ||
Shares redeemed | (56,265) | (198,902) | ||
Net Increase (Decrease) in Shares Outstanding | 7,332 | (7,984) | ||
Class T | ||||
Shares sold | 16,358 | 142,880 | ||
Shares issued for dividends reinvested | 1,297 | — | ||
Shares redeemed | (6,003) | (130,471) | ||
Net Increase (Decrease) in Shares Outstanding | 11,652 | 12,409 |
a During the period ended April 30, 2004, 1,228,192 Class B shares representing $36,988,978 were automatically converted to 1,161,826 Class A shares and during the period ended October 31, 2003, 2,686,258 Class B shares representing $67,652,188 were automatically converted to 2,542,208 Class A shares. See notes to financial statements. |
12
FINANCIAL HIGHLIGHTS |
The following tables describe the performance for each share class for the fiscal peri- |
ods indicated. All information (except portfolio turnover rate) reflects financial |
results for a single fund share.Total return shows how much your investment in the |
fund would have increased (or decreased) during each period, assuming you had |
reinvested all dividends and distributions.These figures have been derived from the |
fund’s financial statements. |
Six Months Ended | ||||||||||||
April 30, 2004 | Year Ended October 31, | |||||||||||
Class A Shares | (Unaudited) | 2003 | 2002 | 2001 | 2000 | 1999 | ||||||
Per Share Data ($): | ||||||||||||
Net asset value, | ||||||||||||
beginning of period | 29.73 | 25.60 | 28.84 | 37.88 | 35.32 | 29.95 | ||||||
Investment Operations: | ||||||||||||
Investment income—neta | .09 | .21 | .10 | .10 | .10 | .09 | ||||||
Net realized and unrealized | ||||||||||||
gain (loss) on investments | 2.54 | 3.92 | (3.34) | (9.14) | 2.57 | 5.49 | ||||||
Total from Investment Operations | 2.63 | 4.13 | (3.24) | (9.04) | 2.67 | 5.58 | ||||||
Distributions: | ||||||||||||
Dividends from investment | ||||||||||||
income—net | (.40) | — | — | — | — | (.10) | ||||||
Dividends from net realized | ||||||||||||
gain on investments | — | — | — | — | (.11) | (.11) | ||||||
Total Distributions | (.40) | — | — | — | (.11) | (.21) | ||||||
Net asset value, end of period | 31.96 | 29.73 | 25.60 | 28.84 | 37.88 | 35.32 | ||||||
Total Return (%)b | 8.89c | 16.13 | (11.24) | (23.86) | 7.58 | 18.70 | ||||||
Ratios/Supplemental Data (%): | ||||||||||||
Ratio of expenses to | ||||||||||||
average net assets | .61c | 1.27 | 1.32 | 1.15 | 1.16 | 1.18 | ||||||
Ratio of net investment income | ||||||||||||
to average net assets | .28c | .79 | .34 | .30 | .25 | .27 | ||||||
Portfolio Turnover Rate | — | 1.08 | 1.58 | 7.26 | 7.10 | 2.42 | ||||||
Net Assets, end of period | ||||||||||||
($ x 1,000) | 444,502 | 390,243 | 320,717 | 404,329 | 496,781 | 440,513 |
a Based on average shares outstanding at each month end.
b | Exclusive of sales charge. |
c | Not annualized. |
See notes to financial statements.
The Fund
13
FINANCIAL HIGHLIGHTS (continued)
Six Months Ended | ||||||||||||
April 30, 2004 | Year Ended October 31, | |||||||||||
Class B Shares | (Unaudited) | 2003 | 2002 | 2001 | 2000 | 1999 | ||||||
Per Share Data ($): | ||||||||||||
Net asset value, | ||||||||||||
beginning of period | 28.03 | 24.33 | 27.59 | 36.50 | 34.29 | 29.20 | ||||||
Investment Operations: | ||||||||||||
Investment income (loss)—neta | (.04) | .00b | (.11) | (.15) | (.19) | (.15) | ||||||
Net realized and unrealized | ||||||||||||
gain (loss) on investments | 2.40 | 3.70 | (3.15) | (8.76) | 2.51 | 5.35 | ||||||
Total from Investment Operations | 2.36 | 3.70 | (3.26) | (8.91) | 2.32 | 5.20 | ||||||
Distributions: | ||||||||||||
Dividends from investment | ||||||||||||
income—net | (.15) | — | — | — | — | — | ||||||
Dividends from net realized | ||||||||||||
gain on investments | — | — | — | — | (.11) | (.11) | ||||||
Total Distributions | (.15) | — | — | — | (.11) | (.11) | ||||||
Net asset value, end of period | 30.24 | 28.03 | 24.33 | 27.59 | 36.50 | 34.29 | ||||||
Total Return (%)c | 8.44d | 15.21 | (11.82) | (24.41) | 6.76 | 17.87 | ||||||
Ratios/Supplemental Data (%): | ||||||||||||
Ratio of expenses to | ||||||||||||
average net assets | 1.02d | 2.05 | 2.03 | 1.92 | 1.92 | 1.92 | ||||||
Ratio of net investment income | ||||||||||||
(loss) to average net assets | (.14)d | .02 | (.39) | (.46) | (.51) | (.46) | ||||||
Portfolio Turnover Rate | — | 1.08 | 1.58 | 7.26 | 7.10 | 2.42 | ||||||
Net Assets, end of period | ||||||||||||
($ x 1,000) | 396,286 | 432,448 | 509,980 | 711,8931,020,578 | 937,195 |
a Based on average shares outstanding at each month end.
b | Amount represents less than $.01. |
c | Exclusive of sales charge. |
d | Not annualized. |
See notes to financial statements.
14
Six Months Ended | ||||||||||||
April 30, 2004 | Year Ended October 31, | |||||||||||
Class C Shares | (Unaudited) | 2003 | 2002 | 2001 | 2000 | 1999 | ||||||
Per Share Data ($): | ||||||||||||
Net asset value, | ||||||||||||
beginning of period | 27.82 | 24.13 | 27.36 | 36.19 | 33.99 | 28.95 | ||||||
Investment Operations: | ||||||||||||
Investment income (loss)—neta | (.03) | .01 | (.10) | (.13) | (.18) | (.14) | ||||||
Net realized and unrealized | ||||||||||||
gain (loss) on investments | 2.37 | 3.68 | (3.13) | (8.70) | 2.49 | 5.30 | ||||||
Total from Investment Operations | 2.34 | 3.69 | (3.23) | (8.83) | 2.31 | 5.16 | ||||||
Distributions: | ||||||||||||
Dividends from | ||||||||||||
investment income—net | (.18) | — | — | — | — | (.01) | ||||||
Dividends from net realized | ||||||||||||
gain on investments | — | — | — | — | (.11) | (.11) | ||||||
Total Distributions | (.18) | — | — | — | (.11) | (.12) | ||||||
Net asset value, end of period | 29.98 | 27.82 | 24.13 | 27.36 | 36.19 | 33.99 | ||||||
Total Return (%)b | 8.50c | 15.25 | (11.80) | (24.40) | 6.79 | 17.87 | ||||||
Ratios/Supplemental Data (%): | ||||||||||||
Ratio of expenses | ||||||||||||
to average net assets | 1.00c | 2.02 | 2.01 | 1.89 | 1.90 | 1.90 | ||||||
Ratio of net investment income | ||||||||||||
(loss) to average net assets | (.11) | c | .04 | (.37) | (.42) | (.49) | (.44) | |||||
Portfolio Turnover Rate | — | 1.08 | 1.58 | 7.26 | 7.10 | 2.42 | ||||||
Net Assets, end of period | ||||||||||||
($ x 1,000) | 108,836 | 110,960 | 116,415 | 160,220 | 223,671 | 196,832 |
a Based on average shares outstanding at each month end.
b | Exclusive of sales charge. |
c | Not annualized. |
See notes to financial statements.
The Fund
15
FINANCIAL HIGHLIGHTS (continued)
Six Months Ended | ||||||||||||
April 30, 2004 | Year Ended October 31, | |||||||||||
Class R Shares | (Unaudited) | 2003 | 2002 | 2001 | 2000 | 1999 | ||||||
Per Share Data ($): | ||||||||||||
Net asset value, | ||||||||||||
beginning of period | 29.95 | 25.75 | 28.88 | 37.81 | 35.14 | 29.77 | ||||||
Investment Operations: | ||||||||||||
Investment income—neta | .12 | .29 | .24 | .20 | .21 | .12 | ||||||
Net realized and unrealized | ||||||||||||
gain (loss) on investments | 2.57 | 3.91 | (3.37) | (9.13) | 2.57 | 5.52 | ||||||
Total from Investment Operations | 2.69 | 4.20 | (3.13) | (8.93) | 2.78 | 5.64 | ||||||
Distributions: | ||||||||||||
Dividends from | ||||||||||||
investment income—net | (.43) | — | — | — | — | (.16) | ||||||
Dividends from net realized | ||||||||||||
gain on investments | — | — | — | — | (.11) | (.11) | ||||||
Total Distributions | (.43) | — | — | — | (.11) | (.27) | ||||||
Net asset value, end of period | 32.21 | 29.95 | 25.75 | 28.88 | 37.81 | 35.14 | ||||||
Total Return (%) | 9.04b | 16.31 | (10.84) | (23.62) | 7.94 | 19.03 | ||||||
Ratios/Supplemental Data (%): | ||||||||||||
Ratio of expenses | ||||||||||||
to average net assets | .51b | .96 | .93 | .85 | .86 | .93 | ||||||
Ratio of net investment income | ||||||||||||
to average net assets | .38b | 1.10 | .82 | .61 | .55 | .35 | ||||||
Portfolio Turnover Rate | — | 1.08 | 1.58 | 7.26 | 7.10 | 2.42 | ||||||
Net Assets, end of period | ||||||||||||
($ x 1,000) | 3,738 | 3,257 | 3,005 | 6,736 | 8,844 | 8,948 |
a | Based on average shares outstanding at each month end. |
b | Not annualized. |
See notes to financial statements.
16
Six Months Ended | ||||||||||||
April 30, 2004 | Year Ended October 31, | |||||||||||
Class T Shares | (Unaudited) | 2003 | 2002 | 2001 | 2000 | 1999a | ||||||
Per Share Data ($): | ||||||||||||
Net asset value, | ||||||||||||
beginning of period | 29.41 | 25.39 | 28.63 | 37.70 | 35.30 | 33.49 | ||||||
Investment Operations: | ||||||||||||
Investment income (loss)—netb | .05 | .13 | .06 | .02 | (.07) | (.02) | ||||||
Net realized and unrealized | ||||||||||||
gain (loss) on investments | 2.51 | 3.89 | (3.30) | (9.09) | 2.58 | 1.83 | ||||||
Total from Investment Operations | 2.56 | 4.02 | (3.24) | (9.07) | 2.51 | 1.81 | ||||||
Distributions: | ||||||||||||
Dividends from | ||||||||||||
investment income—net | (.34) | — | — | — | — | — | ||||||
Dividends from net realized | ||||||||||||
gain on investments | — | — | — | — | (.11) | — | ||||||
Total Distributions | (.34) | — | — | — | (.11) | — | ||||||
Net asset value, end of period | 31.63 | 29.41 | 25.39 | 28.63 | 37.70 | 35.30 | ||||||
Total Return (%)c | 8.75d | 15.83 | (11.32) | (24.06) | 7.26 | 5.29d | ||||||
Ratios/Supplemental Data (%): | ||||||||||||
Ratio of expenses | ||||||||||||
to average net assets | .74d | 1.50 | 1.50 | 1.42 | 1.52 | .13d | ||||||
Ratio of net investment income | ||||||||||||
(loss) to average net assets | .15d | .51 | .20 | .05 | (.20) | (.06)d | ||||||
Portfolio Turnover Rate | — | 1.08 | 1.58 | 7.26 | 7.10 | 2.42 | ||||||
Net Assets, end of period | ||||||||||||
($ x 1,000) | 4,029 | 3,403 | 2,623 | 2,886 | 2,550 | 1 |
a From September 30, 1999 (commencement of initial offering) to October 31, 1999.
b | Based on average shares outstanding at each month end. |
c | Exclusive of sales charge. |
d | Not annualized. |
See notes to financial statements.
The Fund
17
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1—Significant Accounting Policies:
Dreyfus Premier Worldwide Growth Fund, Inc. (the “fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as a diversified open-end management investment company The fund’s investment objective is to provide investors with long-term capital growth consistent with the preservation of capital.The Dreyfus Corporation (“Dreyfus”) serves as the fund’s investment adviser. Fayez Sarofim & Co. (“Sarofim”) serves as the fund’s sub-investment adviser Dreyfus is a wholly-owned subsidiary of Mellon Financial Corporation (“Mellon Financial”).
Dreyfus Service Corporation (the “Distributor”), a wholly-owned subsidiary of Dreyfus, is the distributor of the fund’s shares.The fund is authorized to issue 100 million shares of $.001 par value Common Stock in each of the following classes of shares: Class A, Class B, Class C, Class R and Class T. Class A and Class T shares are subject to a sales charge imposed at the time of purchase. Class B shares are subject to a contingent deferred sales charge (“CDSC”) imposed on Class B share redemptions made within six years of purchase and automatically convert to Class A shares after six years. Class C shares are subject to a CDSC on Class C shares redeemed within one year of purchase and Class R shares are sold at net asset value per share only to institutional investors. Other differences between the classes include the services offered to and the expenses borne by each class and certain voting rights. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.
The fund’s financial statements are prepared in accordance with U.S generally accepted accounting principles, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.
The fund enters into contracts that contain a variety of indemnifications. The fund’s maximum exposure under these arrangements is unknown.The fund does not anticipate recognizing any loss related to these arrangements.
18
(a) Portfolio valuation: Investments in securities (including options and financial futures) are valued at the last sales price on the securities exchange or national securities market on which such securities are primarily traded. Securities listed on the National Market System for which market quotations are available are valued at the official closing price or, if there is no official closing price that day, at the last sale price. Securities not listed on an exchange or the national securities market, or securities for which there were no transactions, are valued at the average of the most recent bid and asked prices. Bid price is used when no asked price is available. When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), but before the fund calculates its net asset value, the fund may value these investments at fair value as determined in accordance with the procedures approved by the fund’s Board. Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant ADR’s and futures contracts. Investments denominated in foreign currencies are translated to U.S. dollars at the prevailing rates of exchange.
(b) Foreign currency transactions: The fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.
Net realized foreign exchange gains or losses arise from sales and maturities of short-term securities, sales of foreign currencies, currency gains or losses realized on securities transactions and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign
The Fund
19
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities, resulting from changes in exchange rates. Such gains and losses are included with net realized and unrealized gain or loss on investments.
(c) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gain and loss from securities transactions are recorded on the identified cost basis. Dividend income is recognized on the ex-dividend date and interest income, including, where applicable, amortization of discount and premium on investments, is recognized on the accrual basis. Under the terms of the custody agreement, the fund receives net earnings credits based on available cash balances left on deposit and includes such credits in income.
(d) Affiliated issuers: Issuers in which the fund held investments in other investment companies advised by the Manager are defined as “affiliated” in the Act.
(e) Dividends to shareholders: Dividends are recorded on the ex-dividend date. Dividends from investment income-net and dividends from net realized capital gain, if any, are normally declared and paid annually, but the fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the “Code”).To the extent that net realized capital gain can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gain. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles.
(f) Federal income taxes: It is the policy of the fund to continue to qualify as a regulated investment company, if such qualification is in the best interests of its shareholders, by complying with the applicable provisions of the Code, and to make distributions of taxable income sufficient to relieve it from substantially all federal income and excise taxes.
20
The fund has an unused capital loss carryover of $141,889,111 available for federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to October 31, 2003. If not applied, $19,175,924 of the carryover expires in fiscal 2008, $20,020,619 expires in fiscal 2009, $74,142,382 expires in fiscal 2010 and $28,550,186 expires in fiscal 2011.
NOTE 2—Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $350 million redemption credit facility (the “Facility”) to be utilized for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the fund has agreed to pay commitment fees on its pro rata portion of the Facility. Interest is charged to the fund based on prevailing market rates in effect at the time of borrowings.
The average daily amount of borrowings outstanding under the Facility during the period ended April 30, 2004, was approximately $332,400, with a related weighted average annualized interest rate of 1.50%.
NOTE 3—Investment Advisory Fee, Sub-Investment Advisory Fee and Other Transactions With Affiliates:
(a) Pursuant to an Investment Advisory Agreement with Dreyfus, the investment advisory fee is computed at the annual rate of .75 of 1% of the value of the fund’s average daily net assets and is payable monthly.
The components of Due to The Dreyfus Corporation and affiliates in the Statement of Assets and Liabilities consists of: management fees $599,714, Rule 12b-1 distribution fees $317,606, shareholder services plan fees $199,140, and transfer agency per account fees $155,709.
The Fund
21
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
Pursuant to a Sub-Investment Advisory Agreement between Dreyfus and Sarofim, Dreyfus has agreed to pay Sarofim a monthly sub-investment advisory fee, computed at the following annual rates:
Annual Fee as a Percentage of | ||
Total Net Assets | Average Daily Net Assets | |
0 to $25 million | 11 of 1% | |
$25 million up to $75 million | 18 of 1% | |
$75 million up to $200 million | 22 of 1% | |
$200 million up to | $300 million . | .26 of 1% |
In excess of $ | 300 million | 275 of 1% |
During the period ended April 30, 2004, the Distributor retained $44,555 and $1,398 from commissions earned on sales of the fund’s Class A and Class T shares, respectively, and $443,873 and $3,104 from contingent deferred sales charges on redemptions of the fund’s Class B and Class C shares, respectively.
(b) Under a Distribution Plan (the “Plan”) adopted pursuant to Rule 12b-1 under the Act, Class B, Class C and Class T shares pay the Distributor for distributing their shares at an annual rate of .75 of 1% of the value of the average daily net assets of Class B and Class C shares and .25 of 1% of the value of the average daily net assets of Class T shares. During the period ended April 30, 2004, Class B, Class C and Class T shares were charged $1,599,072, $423,538 and $4,793, respectively, pursuant to the Plan.
(c) Under the Shareholder Services Plan, Class A, Class B, Class C and Class T shares pay the Distributor, at an annual rate of .25 of 1% of the value of their average daily net assets for the provision of certain ser-vices.The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding the fund and providing reports and other information, and services
22
related to the maintenance of shareholder accounts. The Distributor may make payments to Service Agents (a securities dealer, financial institution or other industry professional) in respect of these services. The Distributor determines the amounts to be paid to Service Agents. During the period ended April 30, 2004, Class A, Class B, Class C and Class T shares were charged $538,787, $533,024, $141,180 and $4,793, respectively, pursuant to the Shareholder Services Plan.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of Dreyfus, under a transfer agency agreement for providing personnel and facilities to perform transfer agency services for the fund. During the period ended April 30, 2004, the fund was charged $524,299, pursuant to the transfer agency agreement.
(d) Each Board member also serves as a Board member of other funds within the Dreyfus complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.
(e) Pursuant to an exemptive order from the Securities and Exchange Commission, the fund may invest its available cash balances in affiliated money market mutual funds as shown in the fund’s Statement of Investments. Management fees are not charged to these money market mutual funds.The fund derived $3,177 in income from these investments, which is included in dividend income in the fund’s Statement of Operations.
NOTE 4—Securities Transactions:
The aggregate amount of sales of investment securities, excluding short-term securities, during the period ended April 30, 2004, amounted to $62,257,595.
The Fund
23
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
At April 30, 2004, accumulated net unrealized appreciation on investments was $218,964,563, consisting of $264,664,844 gross unrealized appreciation and $45,700,281 gross unrealized depreciation.
At April 30, 2004, the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments).
NOTE 5—Legal Matters:
Two class actions have been filed against Mellon Financial and Mellon Bank, N.A., and Dreyfus and Founders Asset Management LLC (the “Investment Advisers”), and the directors of all or substantially all of the Dreyfus funds, alleging that the Investment Advisers improperly used assets of the Dreyfus funds, in the form of directed brokerage commissions and 12b-1 fees, to pay brokers to promote sales of Dreyfus funds, and that the use of fund assets to make these payments was not properly disclosed to investors.The complaints further allege that the directors breached their fiduciary duties to fund shareholders under the Investment Company Act of 1940 and at common law.The complaints seek unspecified compensatory and punitive damages, rescission of the funds’ contracts with the Investment Advisers, an accounting of all fees paid, and an award of attorneys’ fees and litigation expenses. Dreyfus and the Dreyfus funds believe the allegations to be totally without merit and will defend the actions vigorously.
Additional lawsuits arising out of these circumstances and presenting similar allegations and requests for relief may be filed against the defendants in the future. Neither Dreyfus nor the Dreyfus funds believe that any of the pending actions will have a material adverse effect on the Dreyfus funds or Dreyfus’ ability to perform its contracts with the Dreyfus funds.
24
For More Information
Dreyfus Premier |
Worldwide Growth Fund, Inc. |
200 Park Avenue |
New York, NY 10166 |
Investment Adviser |
The Dreyfus Corporation |
200 Park Avenue |
New York, NY 10166 |
Sub-Investment Adviser |
Fayez Sarofim & Co. |
Two Houston Center |
Suite 2907 |
Houston,TX 77010 |
Custodian |
The Bank of New York |
One Wall Street |
New York, NY 10286 |
Transfer Agent & |
Dividend Disbursing Agent |
Dreyfus Transfer, Inc. |
200 Park Avenue |
New York, NY 10166 |
Distributor |
Dreyfus Service Corporation |
200 Park Avenue |
New York, NY 10166 |
To obtain information: |
By telephone |
Call your financial |
representative or |
1-800-554-4611 |
By mail Write to: |
The Dreyfus Premier |
Family of Funds |
144 Glenn Curtiss Boulevard |
Uniondale, NY 11556-0144 |
A description of the policies |
and procedures that the fund |
uses to determine how to |
vote proxies relating to |
portfolio securities is |
available, without charge, |
by calling the telephone |
number listed above, or by |
visiting the SEC’s website at |
http://www.sec.gov |
© 2004 Dreyfus Service Corporation
0070SA0404
Item 2. | Code of Ethics. |
Not applicable. | |
Item 3. | Audit Committee Financial Expert. |
Not applicable. | |
Item 4. | Principal Accountant Fees and Services. |
Not Applicable. | |
Item 5. | Audit Committee of Listed Registrants. |
Not applicable. | |
Item 6. | [Reserved] |
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management |
Investment Companies. | |
Not applicable. | |
Item 8. | Purchases of Equity Securities by Closed-End Management Investment Companies |
and Affiliated Purchasers. | |
Not applicable. | |
Item 9. | Submission of Matters to a Vote of Security Holders. |
Not applicable. | |
Item 10. | Controls and Procedures. |
(a) The Registrant's principal executive and principal financial officers have concluded, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant's disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-CSR is accumulated and communicated to the Registrant's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.
(b) There were no changes to the Registrant's internal control over financial reporting that occurred during the Registrant's most recently ended fiscal half-year that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.
-2-
SSL-DOCS2 70134233v1
Item 11. Exhibits.
(a)(1) not applicable
(a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.
(a)(3) Not applicable.
(b) Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940.
-3-
SSL-DOCS2 70134233v1
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
DREYFUS PREMIER WORLDWIDE GROWTH FUND, INC.
By: | /s/ Stephen E. Canter |
Stephen E. Canter | |
President | |
Date: | June 25, 2004 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By: | /s/ Stephen E. Canter |
Stephen E. Canter | |
Chief Executive Officer | |
Date: | June 25, 2004 |
By: | /s/ James Windels |
James Windels | |
Chief Financial Officer | |
Date: | June 25, 2004 |
EXHIBIT INDEX
(a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940. (EX-99.CERT)
(b) Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940. (EX-99.906CERT)
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SSL-DOCS2 70134233v1