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 | 811-07512 | |||||
BNY Mellon Worldwide Growth Fund, Inc. | ||||||
(Exact name of Registrant as specified in charter) | ||||||
c/o BNY Mellon Investment Adviser, Inc. 240 Greenwich Street New York, New York 10286 | ||||||
(Address of principal executive offices) (Zip code) | ||||||
Bennett A. MacDougall, Esq. 240 Greenwich Street New York, New York 10286 | ||||||
(Name and address of agent for service) | ||||||
Registrant's telephone number, including area code: | (212) 922-6400 | |||||
Date of fiscal year end:
| 10/31 | |||||
Date of reporting period: | 04/30/2021
| |||||
FORM N-CSR
Item 1. | Reports to Stockholders. |
BNY Mellon Worldwide Growth Fund, Inc.
SEMIANNUAL REPORT April 30, 2021 |
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The views expressed in this report reflect those of the portfolio manager(s) only through the end of the period covered and do not necessarily represent the views of BNY Mellon Investment Adviser, Inc. or any other person in the BNY Mellon Investment Adviser, Inc. organization. Any such views are subject to change at any time based upon market or other conditions and BNY Mellon Investment Adviser, Inc. disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a fund in the BNY Mellon Family of Funds are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any fund in the BNY Mellon Family of Funds. |
Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value |
Contents
THE FUND
FOR MORE INFORMATION
Back Cover
DISCUSSION OF FUND PERFORMANCE (Unaudited)
For the period from November 1, 2020, through April 30, 2021, as provided by portfolio manager Fayez Sarofim of Fayez Sarofim & Co., Sub-Investment Adviser.
Market and Fund Performance Overview
For the six-month period ended April 30, 2021, BNY Mellon Worldwide Growth Fund, Inc’s Class A shares produced a total return of 26.11%, Class C shares returned 25.65%, Class I shares returned 26.26% and Class Y shares returned 26.30%.1 For the same period, the fund’s benchmark, the MSCI World Index (the “Index”), produced a 29.10% total return.2
Global equities rose during the reporting period in response to monetary and fiscal stimulus implemented to address the COVID-19 pandemic. The fund underperformed the Index hindered by the net effects of stock selection and economic sector allocation.
The Fund’s Investment Approach
The fund seeks long-term capital growth consistent with the preservation of capital; current income is a secondary goal. To pursue its goals, the fund normally invests at least 80% of its net assets, plus any borrowings for investment purposes, in the common stock of U.S. and foreign companies. The fund focuses on “blue-chip” multinational companies with total market values of more than $5 billion. Blue-chip companies are established companies that are considered “known quantities.” These companies often have a long record of profit growth and dividend payment, as well as a reputation for quality management, products and services. Multinational companies are large, established, globally managed companies that manufacture and distribute their products and services throughout the world.
In choosing stocks, the fund’s portfolio managers first identify economic sectors that they believe will expand over the next three to five years or longer. Using fundamental analysis, the fund’s portfolio managers then seek companies within these sectors that have demonstrated sustained patterns of profitability, strong balance sheets, an expanding global presence, plus the potential to achieve predictable, above-average earnings growth. The fund also invests in U.S. dollar-denominated American Depositary Receipts (ADRs).
The fund employs a “buy-and-hold” investment strategy, which is an investment strategy characterized by a low portfolio turnover rate, which helps reduce the fund’s trading costs and minimizes tax liability by limiting the distribution of capital gains.3
Markets Recover as Progress on the Pandemic Continues
The Index advanced 29.10% in the six-month period ended April 30, 2021. Instead of the pervasive pessimism of a year ago, this period’s optimism was driven by the economic recovery theme, which includes passage of another stimulus package in the U.S., better-than-expected corporate earnings and global vaccination progress.
In the U.S., President Biden’s $1.9 trillion American Rescue Plan was passed with another round of direct payments and additional funds for unemployment relief, vaccine distribution and assistance to schools, businesses and state governments. On the virus front, vaccination progress around the world continued despite a bumpy initial rollout. In Asia, Japan declared a state of emergency as infection rates rose.
2
China forecast Gross Domestic Product growth at or above 6% over the next few years, and the Peoples Bank of China kept the loan prime rate unchanged to support the recovery. Across Europe, the European Central Bank left its deposit rates unchanged to support the recovery, while Mario Draghi took over as the Prime Minister of Italy, a country struggling to contain the virus and resuscitate its economy. Germany and the UK ended lockdowns, and Spain discussed a potential vaccine passport that would benefit its tourism-dependent economy ahead of the busy summer travel season.
While the overall trajectory of the market was upward, it was a volatile period. Volatility came from multiple sources, including a fast-rising U.S. 10-year Treasury yield rate and a global semiconductor chip shortage. Within the Index, value outperformed growth in the period as the rotation out of growth into cyclical and value stocks continued.
Regionally, most countries posted positive returns, highlighted by strength in the Eurozone. Sectors tied to the economic reopening, including the pandemic-challenged energy and financials sectors, delivered returns of 64% and 50% respectively, in the period.
Sector Allocation and Stock Selection Hindered Fund Performance
The fund underperformed the Index as the dual impact of a negative stock selection effect and a negative allocation effect hindered relative performance. Despite the fund’s short-term underperformance as a result of the rotation into value and reopening-themed stocks, we remain committed to our portfolio’s long-term oriented holdings.
Within the information technology sector, a positive stock selection effect added value as holdings in the semiconductor, software and hardware subsectors delivered strong returns. The portfolio’s strategic underweight of the utilities sector contributed positively to results as the sector lagged the Index in the period. An advantageous stock selection effect overcame a negative allocation effect within the overweighted consumer staples sector to add value to the portfolio in the period. The top positive contributors to relative returns included ASML Holding, Microsoft, LVMH Moet Hennessy Louis Vuitton, Apple and Alphabet.
Conversely, disadvantageous stock selection within the financials sector negatively impacted portfolio results as holdings in the capital markets and insurance subsectors trailed the broader sector’s rebound, which was led by banks. A negative stock selection effect within the consumer discretionary sector negatively impacted results for the period. Within the energy sector, the fund’s underweight allocation was at a disadvantage as the sector delivered the best performance against all other sectors in the period. The top detractors from relative performance included Alibaba Group Holding, London Stock Exchange Group, Marriott International, Adobe and Hess.
A Continued Focus on Quality Companies
Rather than try to predict the sentiment shifts that will continue to characterize this unusual time in the financial markets, the fund’s investment approach remains focused on the long term. While the COVID-19 pandemic remains a significant threat to economic activity and corporate profits in the shorter term, the fund emphasizes companies that we believe possess resilient cash flows, solid balance sheets and geographically diverse revenue streams. Those characteristics may offer protection against uncertainty associated with additional waves of infections, high unemployment and rising geopolitical tensions.
3
DISCUSSION OF FUND PERFORMANCE (Unaudited) (continued)
We expect continued volatility as certain industries face impacts from the virus or a slowdown in economic activity. At the same time, the fund’s simultaneous focus on quality businesses operating in attractive, growing industries and led by management teams whom we consider to be excellent allocators of capital, position the fund to attempt to deliver revenue and earnings growth over the long term.
May 17, 2021
1 DUE TO RECENT MARKET VOLATILITY, CURRENT PERFORMANCE MAY BE DIFFERENT THAN THE FIGURES SHOWN. Investors should note that the fund’s short-term performance is highly unusual, in part due to unusually favorable market conditions, and is unlikely to be repeated or consistently achieved in the future. Total return includes reinvestment of dividends and any capital gains paid and does not take into consideration the maximum initial sales charge in the case of Class A shares or the applicable contingent deferred sales charge imposed on redemptions in the case of 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 MSCI World Index is a free float-adjusted, market capitalization-weighted index that is designed to measure the equity market performance of developed markets. Investors cannot invest directly in any index.
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), the fund can be expected to be less tax-efficient than during periods of more stable market conditions and asset flows.
Equities are subject generally to market, market sector, market liquidity, issuer and investment style risks, among other factors, to varying degrees, all of which are more fully described in the fund’s prospectus.
Small and mid-sized company stocks tend to be more volatile and less liquid than larger company stocks as these companies are less established and more volatile earnings histories.
Investing in foreign denominated and/or domiciled securities involves special risks, including changes in currency exchange rates, political, economic, and social instability, limited company information, differing auditing and legal standards, and less market liquidity. These risks generally are greater with emerging market countries.
A concentration of companies in a narrow sector could cause performance to be more volatile than funds invested in a broader range of industries.
References to specific securities, asset classes and financial markets are for illustrative purposes only and are not intended to be and should not be interpreted as recommendations.
Recent market risks include pandemic risks related to COVID-19. The effects of COVID-19 have contributed to increased volatility in global markets and will likely affect certain countries, companies, industries and market sectors more dramatically than others. To the extent the fund may overweight its investments in certain countries, companies, industries or market sectors, such positions will increase the fund’s exposure to risk of loss from adverse developments affecting those countries, companies, industries or sectors.
4
UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited)
As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds. You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial adviser.
Review your fund’s expenses
The table below shows the expenses you would have paid on a $1,000 investment in BNY Mellon Worldwide Growth Fund, Inc. from November 1, 2020 to April 30, 2021. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.
Expenses and Value of a $1,000 Investment |
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Assume actual returns for the six months ended April 30, 2021 |
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| Class A | Class C | Class I | Class Y |
|
Expenses paid per $1,000† | $6.45 | $10.57 | $4.99 | $4.54 |
| |
Ending value (after expenses) | $1,261.10 | $1,256.50 | $1,262.60 | $1,263.00 |
|
COMPARING YOUR FUND’S EXPENSES
WITH THOSE OF OTHER FUNDS (Unaudited)
Using the SEC’s method to compare expenses
The Securities and Exchange Commission (“SEC”) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the fund with those of other funds. All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.
Expenses and Value of a $1,000 Investment |
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Assuming a hypothetical 5% annualized return for the six months ended April 30, 2021 |
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| Class A | Class C | Class I | Class Y |
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Expenses paid per $1,000† | $5.76 | $9.44 | $4.46 | $4.06 |
| |
Ending value (after expenses) | $1,019.09 | $1,015.42 | $1,020.38 | $1,020.78 |
| |
† | Expenses are equal to the fund’s annualized expense ratio of 1.15% for Class A, 1.89% for Class C, .89% for Class I and .81% for Class Y, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
5
STATEMENT OF INVESTMENTS
April 30, 2021 (Unaudited)
Description | Shares | Value ($) | |||||
Common Stocks - 99.5% | |||||||
Banks - 2.1% | |||||||
JPMorgan Chase & Co. | 134,275 | 20,652,838 | |||||
Capital Goods - .2% | |||||||
Safran | 9,925 | 1,481,332 | |||||
Commercial & Professional Services - 1.0% | |||||||
IHS Markit | 89,075 | 9,582,689 | |||||
Consumer Durables & Apparel - 6.6% | |||||||
adidas | 32,475 | 10,028,363 | |||||
Hermes International | 8,226 | 10,322,398 | |||||
LVMH | 57,975 | 43,634,939 | |||||
63,985,700 | |||||||
Consumer Services - 2.8% | |||||||
Marriott International, Cl. A | 64,000 | a | 9,505,280 | ||||
McDonald's | 74,275 | 17,534,842 | |||||
27,040,122 | |||||||
Diversified Financials - 4.8% | |||||||
BlackRock | 32,675 | 26,770,628 | |||||
London Stock Exchange Group | 87,950 | 8,985,528 | |||||
S&P Global | 26,925 | 10,511,251 | |||||
46,267,407 | |||||||
Energy - 1.9% | |||||||
Chevron | 146,250 | 15,073,987 | |||||
Hess | 42,500 | 3,166,675 | |||||
18,240,662 | |||||||
Food, Beverage & Tobacco - 9.8% | |||||||
Altria Group | 196,400 | 9,378,100 | |||||
Diageo, ADR | 64,825 | b | 11,626,364 | ||||
Nestle, ADR | 201,180 | 24,047,045 | |||||
PepsiCo | 95,300 | 13,738,448 | |||||
Philip Morris International | 202,100 | 19,199,500 | |||||
The Coca-Cola Company | 315,075 | 17,007,748 | |||||
94,997,205 | |||||||
Health Care Equipment & Services - 4.1% | |||||||
Abbott Laboratories | 168,875 | 20,278,510 | |||||
Intuitive Surgical | 14,975 | a | 12,953,375 | ||||
UnitedHealth Group | 15,475 | 6,171,430 | |||||
39,403,315 | |||||||
Household & Personal Products - 6.0% | |||||||
L'Oreal, ADR | 540,425 | b | 44,212,169 | ||||
The Estee Lauder Companies, Cl. A | 27,775 | 8,715,795 | |||||
The Procter & Gamble Company | 37,000 | 4,936,540 | |||||
57,864,504 |
6
Description | Shares | Value ($) | |||||
Common Stocks - 99.5% (continued) | |||||||
Insurance - 1.2% | |||||||
AIA Group | 721,675 | 9,174,199 | |||||
Chubb | 15,225 | 2,612,458 | |||||
11,786,657 | |||||||
Materials - 2.0% | |||||||
Air Liquide, ADR | 397,540 | b | 13,381,196 | ||||
Air Products & Chemicals | 19,100 | 5,509,968 | |||||
18,891,164 | |||||||
Media & Entertainment - 16.5% | |||||||
Alphabet, Cl. C | 18,405 | a | 44,358,259 | ||||
Comcast, Cl. A | 331,760 | 18,628,324 | |||||
Facebook, Cl. A | 189,000 | a | 61,440,120 | ||||
Nintendo | 24,450 | 14,007,859 | |||||
Tencent Holdings | 133,825 | 10,702,395 | |||||
The Walt Disney Company | 56,111 | a | 10,437,768 | ||||
159,574,725 | |||||||
Pharmaceuticals Biotechnology & Life Sciences - 5.1% | |||||||
AbbVie | 19,075 | 2,126,863 | |||||
Johnson & Johnson | 44,475 | 7,237,417 | |||||
Novo Nordisk, ADR | 256,300 | 18,953,385 | |||||
Roche Holding, ADR | 520,125 | 21,174,289 | |||||
49,491,954 | |||||||
Retailing - 4.2% | |||||||
Alibaba Group Holding, ADR | 41,150 | a | 9,503,593 | ||||
Amazon.com | 8,925 | a | 30,946,723 | ||||
40,450,316 | |||||||
Semiconductors & Semiconductor Equipment - 7.0% | |||||||
ASML Holding | 53,200 | 34,478,920 | |||||
Texas Instruments | 181,425 | 32,749,027 | |||||
67,227,947 | |||||||
Software & Services - 13.2% | |||||||
Adobe | 10,300 | a | 5,235,902 | ||||
Intuit | 12,500 | 5,152,000 | |||||
Microsoft | 323,780 | 81,650,840 | |||||
Visa, Cl. A | 152,750 | b | 35,676,290 | ||||
127,715,032 | |||||||
Technology Hardware & Equipment - 6.8% | |||||||
Apple | 500,550 | 65,802,303 | |||||
Transportation - 4.2% | |||||||
Canadian Pacific Railway | 74,125 | b | 27,658,261 | ||||
Union Pacific | 56,875 | 12,631,369 | |||||
40,289,630 | |||||||
Total Common Stocks (cost $283,806,415) | 960,745,502 |
7
STATEMENT OF INVESTMENTS (Unaudited) (continued)
Description | 1-Day | Shares | Value ($) | ||||
Investment Companies - ..3% | |||||||
Registered Investment Companies - .3% | |||||||
Dreyfus Institutional Preferred Government Plus Money Market Fund, Institutional Shares | 0.05 | 2,956,312 | c | 2,956,312 | |||
Investment of Cash Collateral for Securities Loaned - .2% | |||||||
Registered Investment Companies - .2% | |||||||
Dreyfus Institutional Preferred Government Plus Money Market Fund, SL Shares | 0.01 | 1,608,795 | c | 1,608,795 | |||
Total Investments (cost $288,371,522) | 100.0% | 965,310,609 | |||||
Liabilities, Less Cash and Receivables | (.0%) | (89,145) | |||||
Net Assets | 100.0% | 965,221,464 |
ADR—American Depository Receipt
a Non-income producing security.
b Security, or portion thereof, on loan. At April 30, 2021, the value of the fund’s securities on loan was $49,126,110 and the value of the collateral was $51,162,712, consisting of cash collateral of $1,608,795 and U.S. Government & Agency securities valued at $49,553,917.
c Investment in affiliated issuer. The investment objective of this investment company is publicly available and can be found within the investment company’s prospectus.
Portfolio Summary (Unaudited) † | Value (%) |
Information Technology | 27.0 |
Communication Services | 16.5 |
Consumer Staples | 15.8 |
Consumer Discretionary | 13.6 |
Health Care | 9.2 |
Financials | 8.2 |
Industrials | 5.3 |
Materials | 2.0 |
Energy | 1.9 |
Investment Companies | .5 |
100.0 |
† Based on net assets.
See notes to financial statements.
8
STATEMENT OF INVESTMENTS IN AFFILIATED ISSUERS (Unaudited)
Investment Companies | Value | Purchases ($)† | Sales ($) | Value | Net | Dividends/ |
Registered Investment Companies; | ||||||
Dreyfus Institutional Preferred Government Plus Money Market Fund, Institutional Shares | 968,532 | 42,753,221 | (40,765,441) | 2,956,312 | .3 | 799 |
Investment of Cash Collateral | ||||||
Dreyfus Institutional Preferred Government Plus Money Market Fund, Institutional Shares | 1,609,462 | 1,542,205 | (3,151,667) | - | - | - |
Dreyfus Institutional Preferred Government Plus Money Market Fund, SL Shares | - | 98,430,050 | (96,821,255) | 1,608,795 | .2 | 37,652††† |
Total | 2,577,994 | 142,725,476 | (140,738,363) | 4,565,107 | .5 | 38,451 |
† Includes reinvested dividends/distributions.
†† Effective November 9, 2020, cash collateral for securities lending was transferred from Dreyfus Institutional Preferred Government Plus Money Market Fund, Institutional Shares to Dreyfus Institutional Preferred Government Plus Money Market Fund, SL Shares.
††† Represents securities lending income earned from reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.
See notes to financial statements.
9
STATEMENT OF FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS April 30, 2021 (Unaudited)
Counterparty/ Purchased | Purchased Currency | Currency | Sold | Settlement Date | Unrealized Appreciation ($) |
Morgan Stanley | |||||
United States Dollar | 5,867,653 | Euro | 4,843,056 | 5/3/2021 | 44,757 |
Gross Unrealized Appreciation | 44,757 |
See notes to financial statements.
10
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2021 (Unaudited)
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| Cost |
| Value |
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Assets ($): |
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Investments in securities—See Statement of Investments |
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| |||
Unaffiliated issuers | 283,806,415 |
| 960,745,502 |
| ||
Affiliated issuers |
| 4,565,107 |
| 4,565,107 |
| |
Cash denominated in foreign currency |
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| 203,141 |
| 203,027 |
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Receivable for investment securities sold |
| 5,865,909 |
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Dividends and securities lending income receivable |
| 1,506,458 |
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Receivable for shares of Common Stock subscribed |
| 1,387,216 |
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Tax reclaim receivable—Note 1(b) |
| 829,057 |
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Unrealized appreciation on forward foreign |
| 44,757 |
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Prepaid expenses |
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| 67,773 |
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| 975,214,806 |
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Liabilities ($): |
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Due to BNY Mellon Investment Adviser, Inc. and affiliates—Note 3(c) |
| 769,617 |
| |||
Payable for investment securities purchased |
| 6,742,837 |
| |||
Liability for securities on loan—Note 1(c) |
| 1,608,795 |
| |||
Payable for shares of Common Stock redeemed |
| 679,544 |
| |||
Directors’ fees and expenses payable |
| 6,711 |
| |||
Other accrued expenses |
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| 185,838 |
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| 9,993,342 |
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Net Assets ($) |
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| 965,221,464 |
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Composition of Net Assets ($): |
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Paid-in capital |
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| 236,392,228 |
|
Total distributable earnings (loss) |
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| 728,829,236 |
|
Net Assets ($) |
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| 965,221,464 |
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Net Asset Value Per Share | Class A | Class C | Class I | Class Y |
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Net Assets ($) | 681,531,738 | 16,989,775 | 230,061,569 | 36,638,382 |
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Shares Outstanding | 9,608,479 | 283,798 | 3,218,841 | 513,192 |
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Net Asset Value Per Share ($) | 70.93 | 59.87 | 71.47 | 71.39 |
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See notes to financial statements. |
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11
STATEMENT OF OPERATIONS
Six Months Ended April 30, 2021 (Unaudited)
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Investment Income ($): |
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Income: |
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Cash dividends (net of $517,609 foreign taxes withheld at source): |
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Unaffiliated issuers |
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| 7,225,087 |
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Affiliated issuers |
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| 799 |
| ||
Income from securities lending—Note 1(c) |
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| 37,652 |
| ||
Total Income |
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| 7,263,538 |
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Expenses: |
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Management fee—Note 3(a) |
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| 3,331,168 |
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Shareholder servicing costs—Note 3(c) |
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| 1,209,629 |
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Distribution fees—Note 3(b) |
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| 70,300 |
| ||
Professional fees |
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| 58,355 |
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Registration fees |
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| 39,232 |
| ||
Directors’ fees and expenses—Note 3(d) |
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| 30,506 |
| ||
Loan commitment fees—Note 2 |
|
| 29,970 |
| ||
Custodian fees—Note 3(c) |
|
| 28,250 |
| ||
Prospectus and shareholders’ reports |
|
| 25,280 |
| ||
Chief Compliance Officer fees—Note 3(c) |
|
| 7,766 |
| ||
Interest expense—Note 2 |
|
| 104 |
| ||
Miscellaneous |
|
| 16,065 |
| ||
Total Expenses |
|
| 4,846,625 |
| ||
Investment Income—Net |
|
| 2,416,913 |
| ||
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): |
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| ||||
Net realized gain (loss) on investments and foreign currency transactions | 49,477,155 |
| ||||
Net realized gain (loss) on forward foreign currency exchange contracts | 28,002 |
| ||||
Net Realized Gain (Loss) |
|
| 49,505,157 |
| ||
Net change in unrealized appreciation (depreciation) on investments | 151,145,550 |
| ||||
Net change in unrealized appreciation (depreciation) on | 44,757 |
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Net Change in Unrealized Appreciation (Depreciation) |
|
| 151,190,307 |
| ||
Net Realized and Unrealized Gain (Loss) on Investments |
|
| 200,695,464 |
| ||
Net Increase in Net Assets Resulting from Operations |
| 203,112,377 |
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See notes to financial statements. |
12
STATEMENT OF CHANGES IN NET ASSETS
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| Six Months Ended |
| Year Ended |
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Operations ($): |
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Investment income—net |
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| 2,416,913 |
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| 4,904,563 |
| |
Net realized gain (loss) on investments |
| 49,505,157 |
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| 31,152,004 |
| ||
Net change in unrealized appreciation |
| 151,190,307 |
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| 77,655,113 |
| ||
Net Increase (Decrease) in Net Assets | 203,112,377 |
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| 113,711,680 |
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Distributions ($): |
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Distributions to shareholders: |
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Class A |
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| (22,800,659) |
|
|
| (37,146,839) |
| |
Class C |
|
| (887,321) |
|
|
| (2,734,042) |
| |
Class I |
|
| (7,737,181) |
|
|
| (11,715,577) |
| |
Class Y |
|
| (1,185,912) |
|
|
| (1,923,083) |
| |
Total Distributions |
|
| (32,611,073) |
|
|
| (53,519,541) |
| |
Capital Stock Transactions ($): |
| ||||||||
Net proceeds from shares sold: |
|
|
|
|
|
|
|
| |
Class A |
|
| 21,382,646 |
|
|
| 39,156,772 |
| |
Class C |
|
| 820,665 |
|
|
| 2,616,700 |
| |
Class I |
|
| 30,020,043 |
|
|
| 55,645,982 |
| |
Class Y |
|
| 6,779,843 |
|
|
| 7,259,125 |
| |
Distributions reinvested: |
|
|
|
|
|
|
|
| |
Class A |
|
| 19,848,015 |
|
|
| 32,764,203 |
| |
Class C |
|
| 851,272 |
|
|
| 1,737,840 |
| |
Class I |
|
| 6,912,500 |
|
|
| 10,434,788 |
| |
Class Y |
|
| 1,113,486 |
|
|
| 1,833,093 |
| |
Cost of shares redeemed: |
|
|
|
|
|
|
|
| |
Class A |
|
| (38,630,762) |
|
|
| (66,658,293) |
| |
Class C |
|
| (7,695,737) |
|
|
| (22,602,504) |
| |
Class I |
|
| (28,063,212) |
|
|
| (51,605,590) |
| |
Class Y |
|
| (6,122,008) |
|
|
| (7,410,376) |
| |
Increase (Decrease) in Net Assets | 7,216,751 |
|
|
| 3,171,740 |
| |||
Total Increase (Decrease) in Net Assets | 177,718,055 |
|
|
| 63,363,879 |
| |||
Net Assets ($): |
| ||||||||
Beginning of Period |
|
| 787,503,409 |
|
|
| 724,139,530 |
| |
End of Period |
|
| 965,221,464 |
|
|
| 787,503,409 |
|
13
STATEMENT OF CHANGES IN NET ASSETS (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six Months Ended |
| Year Ended |
| ||
Capital Share Transactions (Shares): |
| ||||||||
Class Aa,b |
|
|
|
|
|
|
|
| |
Shares sold |
|
| 326,997 |
|
|
| 707,910 |
| |
Shares issued for distributions reinvested |
|
| 314,507 |
|
|
| 619,521 |
| |
Shares redeemed |
|
| (591,775) |
|
|
| (1,229,617) |
| |
Net Increase (Decrease) in Shares Outstanding | 49,729 |
|
|
| 97,814 |
| |||
Class Cb |
|
|
|
|
|
|
|
| |
Shares sold |
|
| 14,782 |
|
|
| 56,404 |
| |
Shares issued for distributions reinvested |
|
| 15,912 |
|
|
| 38,499 |
| |
Shares redeemed |
|
| (139,342) |
|
|
| (475,529) |
| |
Net Increase (Decrease) in Shares Outstanding | (108,648) |
|
|
| (380,626) |
| |||
Class Ia |
|
|
|
|
|
|
|
| |
Shares sold |
|
| 453,055 |
|
|
| 1,026,527 |
| |
Shares issued for distributions reinvested |
|
| 108,889 |
|
|
| 195,989 |
| |
Shares redeemed |
|
| (424,991) |
|
|
| (950,405) |
| |
Net Increase (Decrease) in Shares Outstanding | 136,953 |
|
|
| 272,111 |
| |||
Class Y |
|
|
|
|
|
|
|
| |
Shares sold |
|
| 102,091 |
|
|
| 137,262 |
| |
Shares issued for distributions reinvested |
|
| 17,571 |
|
|
| 34,469 |
| |
Shares redeemed |
|
| (92,601) |
|
|
| (132,909) |
| |
Net Increase (Decrease) in Shares Outstanding | 27,061 |
|
|
| 38,822 |
| |||
|
|
|
|
|
|
|
|
|
|
a | During the period ended April 30, 2021, 743 Class A shares representing $52,701 were exchanged for 737 Class I shares and 805 Class C shares representing $48,195 were exchanged for 674 Class I shares. During the period ended October 31, 2020, 1,437 Class A shares representing $85,719 were exchanged for 1,427 Class I shares. | ||||||||
b | During the period ended April 30, 2021, 6,965 Class C shares representing $384,310 were automatically converted to 5,889 Class A shares and during the period ended October 31, 2020, 2,960 Class C shares representing $147,635 were automatically converted to 2,525 Class A shares. | ||||||||
See notes to financial statements. |
14
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the fiscal periods indicated. All information (except portfolio turnover rate) reflects financial results for a single fund share. Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. These figures have been derived from the fund’s financial statements.
Six Months Ended | |||||||
April 30, 2021 | Year Ended October 31, | ||||||
Class A Shares | (Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 | |
Per Share Data ($): | |||||||
Net asset value, beginning of period | 58.39 | 54.01 | 52.03 | 58.28 | 50.01 | 54.03 | |
Investment Operations: | |||||||
Investment income—neta | .16 | .33 | .47 | .62 | .63 | .69 | |
Net realized and unrealized | 14.78 | 8.01 | 7.48 | .28 | 11.50 | (.68) | |
Total from Investment Operations | 14.94 | 8.34 | 7.95 | .90 | 12.13 | .01 | |
Distributions: | |||||||
Dividends from | (.09) | (.33) | (.50) | (.63) | (.59) | (.68) | |
Dividends from net realized | (2.31) | (3.63) | (5.47) | (6.52) | (3.27) | (3.35) | |
Total Distributions | (2.40) | (3.96) | (5.97) | (7.15) | (3.86) | (4.03) | |
Net asset value, end of period | 70.93 | 58.39 | 54.01 | 52.03 | 58.28 | 50.01 | |
Total Return (%)b | 26.11c | 16.24 | 17.44 | 1.25 | 25.88 | .20 | |
Ratios/Supplemental Data (%): | |||||||
Ratio of total expenses | 1.15d | 1.14 | 1.14 | 1.17 | 1.18 | 1.19 | |
Ratio of net investment income | .49d | .61 | .92 | 1.14 | 1.18 | 1.39 | |
Portfolio Turnover Rate | 5.64c | 4.92 | 4.06 | 4.52 | 7.36 | 5.51 | |
Net Assets, end of period ($ x 1,000) | 681,532 | 558,157 | 511,019 | 406,634 | 433,075 | 385,324 |
a Based on average shares outstanding.
b Exclusive of sales charge.
c Not annualized.
d Annualized.
See notes to financial statements.
15
FINANCIAL HIGHLIGHTS (continued)
Six Months Ended | |||||||
April 30, 2021 | Year Ended October 31, | ||||||
Class C Shares | (Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 | |
Per Share Data ($): | |||||||
Net asset value, beginning of period | 49.71 | 46.59 | 45.68 | 51.91 | 44.90 | 48.93 | |
Investment Operations: | |||||||
Investment income (loss)—neta | (.09) | (.04) | .10 | .17 | .24 | .30 | |
Net realized and unrealized | 12.56 | 6.83 | 6.44 | .30 | 10.24 | (.63) | |
Total from Investment Operations | 12.47 | 6.79 | 6.54 | .47 | 10.48 | (.33) | |
Distributions: | |||||||
Dividends from | - | (.04) | (.16) | (.18) | (.20) | (.35) | |
Dividends from net realized | (2.31) | (3.63) | (5.47) | (6.52) | (3.27) | (3.35) | |
Total Distributions | (2.31) | (3.67) | (5.63) | (6.70) | (3.47) | (3.70) | |
Net asset value, end of period | 59.87 | 49.71 | 46.59 | 45.68 | 51.91 | 44.90 | |
Total Return (%)b | 25.65c | 15.36 | 16.58 | .51 | 24.95 | (.54) | |
Ratios/Supplemental Data (%): | |||||||
Ratio of total expenses | 1.89d | 1.89 | 1.89 | 1.90 | 1.92 | 1.93 | |
Ratio of net investment income (loss) | (.32)d | (.09) | .22 | .35 | .51 | .66 | |
Portfolio Turnover Rate | 5.64c | 4.92 | 4.06 | 4.52 | 7.36 | 5.51 | |
Net Assets, end of period ($ x 1,000) | 16,990 | 19,508 | 36,014 | 17,377 | 44,556 | 51,906 |
a Based on average shares outstanding.
b Exclusive of sales charge.
c Not annualized.
d Annualized.
See notes to financial statements.
16
Six Months Ended | ||||||
April 30, 2021 | Year Ended October 31, | |||||
Class I Shares | (Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 |
Per Share Data ($): | ||||||
Net asset value, beginning of period | 58.82 | 54.38 | 52.37 | 58.72 | 50.46 | 54.48 |
Investment Operations: | ||||||
Investment income—neta | .25 | .48 | .60 | .77 | .77 | .84 |
Net realized and unrealized | 14.88 | 8.06 | 7.53 | .29 | 11.59 | (.69) |
Total from Investment Operations | 15.13 | 8.54 | 8.13 | 1.06 | 12.36 | .15 |
Distributions: | ||||||
Dividends from | (.17) | (.47) | (.65) | (.89) | (.83) | (.82) |
Dividends from net realized | (2.31) | (3.63) | (5.47) | (6.52) | (3.27) | (3.35) |
Total Distributions | (2.48) | (4.10) | (6.12) | (7.41) | (4.10) | (4.17) |
Net asset value, end of period | 71.47 | 58.82 | 54.38 | 52.37 | 58.72 | 50.46 |
Total Return (%) | 26.26b | 16.55 | 17.71 | 1.54 | 26.21 | .47 |
Ratios/Supplemental Data (%): | ||||||
Ratio of total expenses | .89c | .89 | .89 | .90 | .91 | .92 |
Ratio of net investment income | .75c | .86 | 1.18 | 1.40 | 1.44 | 1.66 |
Portfolio Turnover Rate | 5.64b | 4.92 | 4.06 | 4.52 | 7.36 | 5.51 |
Net Assets, end of period ($ x 1,000) | 230,062 | 181,276 | 152,806 | 126,814 | 148,024 | 120,150 |
a Based on average shares outstanding.
b Not annualized.
c Annualized.
See notes to financial statements.
17
FINANCIAL HIGHLIGHTS (continued)
Six Months Ended | ||||||||||||
April 30, 2021 | Year Ended October 31, | |||||||||||
Class Y Shares | (Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||
Per Share Data ($): | ||||||||||||
Net asset value, beginning of period | 58.76 | 54.33 | 52.33 | 58.71 | 50.49 | 54.52 | ||||||
Investment Operations: | ||||||||||||
Investment income—neta | .28 | .52 | .62 | .82 | .85 | .69 | ||||||
Net realized and unrealized | 14.85 | 8.05 | 7.54 | .29 | 11.55 | (.51) | ||||||
Total from Investment Operations | 15.13 | 8.57 | 8.16 | 1.11 | 12.40 | .18 | ||||||
Distributions: | ||||||||||||
Dividends from | (.19) | (.51) | (.69) | (.97) | (.91) | (.86) | ||||||
Dividends from net realized | (2.31) | (3.63) | (5.47) | (6.52) | (3.27) | (3.35) | ||||||
Total Distributions | (2.50) | (4.14) | (6.16) | (7.49) | (4.18) | (4.21) | ||||||
Net asset value, end of period | 71.39 | 58.76 | 54.33 | 52.33 | 58.71 | 50.49 | ||||||
Total Return (%) | 26.30b | 16.63 | 17.80 | 1.61 | 26.32 | .56 | ||||||
Ratios/Supplemental Data (%): | ||||||||||||
Ratio of total expenses | .81c | .81 | .81 | .82 | .82 | .86 | ||||||
Ratio of net investment income | .85c | .94 | 1.26 | 1.50 | 1.59 | 1.41 | ||||||
Portfolio Turnover Rate | 5.64b | 4.92 | 4.06 | 4.52 | 7.36 | 5.51 | ||||||
Net Assets, end of period ($ x 1,000) | 36,638 | 28,563 | 24,301 | 32,507 | 34,823 | 28,522 |
a Based on average shares outstanding.
b Not annualized.
c Annualized.
See notes to financial statements.
18
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1—Significant Accounting Policies:
BNY Mellon Worldwide Growth Fund, Inc. (the “fund”), which is registered under the Investment Company Act of 1940, as amended (the “Act”), is a diversified open-end management investment company. The fund’s investment objective is to seek long-term capital growth consistent with the preservation of capital. BNY Mellon Investment Adviser, Inc. (the “Adviser”), a wholly-owned subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”), serves as the fund’s investment adviser. Fayez Sarofim & Co. (the “Sub-Adviser”), serves as the fund’s sub-investment adviser.
BNY Mellon Securities Corporation (the “Distributor”), a wholly-owned subsidiary of the Adviser, is the distributor of the fund’s shares. The fund is authorized to issue 500 million shares of $.001 par value Common Stock. The fund currently has authorized four classes of shares: Class A (100 million shares authorized), Class C (100 million shares authorized), Class I (150 million shares authorized) and Class Y (150 million shares authorized). Class A shares generally are subject to a sales charge imposed at the time of purchase. Class A shares bought without an initial sales charge as part of an investment of $1 million or more may be charged a contingent deferred sales charge (“CDSC”) of 1.00% if redeemed within one year. Class C shares are subject to a CDSC imposed on Class C shares redeemed within one year of purchase. Class C shares automatically convert to Class A shares eight years after the date of purchase, without the imposition of a sales charge. Class I and Class Y shares are sold at net asset value per share generally to institutional investors. Other differences between the classes include the services offered to and the expenses borne by each class, the allocation of certain transfer agency costs, 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 Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) is the exclusive reference of authoritative U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the SEC under authority of federal laws are also sources of authoritative GAAP for SEC registrants. The fund is an investment company and applies the accounting and reporting guidance of the FASB ASC Topic 946 Financial Services-Investment Companies. The fund’s financial statements are prepared in accordance with GAAP, which may
19
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
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.
(a) Portfolio valuation: The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., the exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value. This hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).
Additionally, GAAP provides guidance on determining whether the volume and activity in a market has decreased significantly and whether such a decrease in activity results in transactions that are not orderly. GAAP requires enhanced disclosures around valuation inputs and techniques used during annual and interim periods.
Various inputs are used in determining the value of the fund’s investments relating to fair value measurements. These inputs are summarized in the three broad levels listed below:
Level 1—unadjusted quoted prices in active markets for identical investments.
Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.).
Level 3—significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the fund’s investments are as follows:
Investments in equity securities 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
20
price or, if there is no official closing price that day, at the last sales price. For open short positions, asked prices are used for valuation purposes. Bid price is used when no asked price is available. Registered investment companies that are not traded on an exchange are valued at their net asset value. All of the preceding securities are generally categorized within Level 1 of the fair value hierarchy.
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. These securities are generally categorized within Level 2 of the fair value hierarchy.
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 ADRs and futures. Utilizing these techniques may result in transfers between Level 1 and Level 2 of the fair value hierarchy.
When market quotations or official closing prices are not readily available, or are determined not to accurately reflect 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 of Directors (the “Board”). Certain factors may be considered when fair valuing investments such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. These securities are either categorized within Level 2 or 3 of the fair value hierarchy depending on the relevant inputs used.
For securities where observable inputs are limited, assumptions about market activity and risk are used and such securities are generally categorized within Level 3 of the fair value hierarchy.
Investments denominated in foreign currencies are translated to U.S. dollars at the prevailing rates of exchange.
Forward foreign currency exchange contracts (“forward contracts”) are valued at the forward rate and are generally categorized within Level 2 of the fair value hierarchy.
The following is a summary of the inputs used as of April 30, 2021 in valuing the fund’s investments:
21
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
Level 1-Unadjusted Quoted Prices | Level 2- Other Significant Observable Inputs | Level 3-Significant Unobservable Inputs | Total | |||
Assets ($) | ||||||
Investments In Securities:† | ||||||
Equity Securities - Common Stocks | 852,408,489 | 108,337,013 | †† | - | 960,745,502 | |
Investment Companies | 4,565,107 | - | - | 4,565,107 | ||
Other Financial Instruments: | ||||||
Forward Foreign Currency Exchange Contracts††† | - | 44,757 | - | 44,757 |
† See Statement of Investments for additional detailed categorizations, if any.
†† Securities classified within Level 2 at period end as the values were determined pursuant to the fund’s fair valuation procedures.
††† Amount shown represents unrealized appreciation (depreciation) at period end, but only variation margin on exchanged traded and centrally cleared derivatives, if any, are reported in the Statement of Assets and Liabilities.
(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 the market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.
Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized on securities transactions between trade and settlement date, 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 exchange gains and losses arise from changes in the value of assets and liabilities other than investments resulting from changes in exchange rates. Foreign currency gains and losses on foreign currency transactions are also included with net realized and unrealized gain or loss on investments.
Foreign taxes: The fund may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, realized and unrealized capital gains on investments or certain foreign currency transactions. Foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the fund invests. These foreign taxes, if any, are paid by the fund and are reflected in the Statement of Operations, if applicable. Foreign
22
taxes payable or deferred or those subject to reclaims as of April 30, 2021, if any, are disclosed in the fund’s Statement of Assets and Liabilities.
(c) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gains and losses 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, accretion of discount and amortization of premium on investments, is recognized on the accrual basis.
Pursuant to a securities lending agreement with The Bank of New York Mellon, a subsidiary of BNY Mellon and an affiliate of the Adviser, the fund may lend securities to qualified institutions. It is the fund’s policy that, at origination, all loans are secured by collateral of at least 102% of the value of U.S. securities loaned and 105% of the value of foreign securities loaned. Collateral equivalent to at least 100% of the market value of securities on loan is maintained at all times. The fund received additional collateral subsequent to year end which resulted in the market value of the collateral to be at least 100% of the market value of the securities on loan. Collateral is either in the form of cash, which can be invested in certain money market mutual funds managed by the Adviser, or U.S. Government and Agency securities. The fund is entitled to receive all dividends, interest and distributions on securities loaned, in addition to income earned as a result of the lending transaction. Should a borrower fail to return the securities in a timely manner, The Bank of New York Mellon is required to replace the securities for the benefit of the fund or credit the fund with the market value of the unreturned securities and is subrogated to the fund’s rights against the borrower and the collateral. Additionally, the contractual maturity of security lending transactions are on an overnight and continuous basis. During the period ended April 30, 2021, The Bank of New York Mellon earned $4,947 from the lending of the fund’s portfolio securities, pursuant to the securities lending agreement.
(d) Affiliated issuers: Investments in other investment companies advised by the Adviser are considered “affiliated” under the Act.
(e) Risk: Certain events particular to the industries in which the fund’s investments conduct their operations, as well as general economic, political and public health conditions, may have a significant negative impact on the investee’s operations and profitability. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers, which could adversely affect the fund. Global economies and financial markets are becoming increasingly interconnected, and conditions and events in one country,
23
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
region or financial market may adversely impact issuers in a different country, region or financial market. These risks may be magnified if certain events or developments adversely interrupt the global supply chain; in these and other circumstances, such risks might affect companies worldwide. Recent examples include pandemic risks related to COVID-19 and aggressive measures taken world-wide in response by governments, including closing borders, restricting international and domestic travel, and the imposition of prolonged quarantines of large populations, and by businesses, including changes to operations and reducing staff. To the extent the fund may overweight its investments in certain countries, companies, industries or market sectors, such positions will increase the fund’s exposure to risk of loss from adverse developments affecting those countries, companies, industries or sectors.
(f) Dividends and distributions to shareholders: Dividends and distributions are recorded on the ex-dividend date. Dividends from investment income-net are normally declared and paid quarterly. Dividends from net realized capital gains, 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 gains can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gains. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
(g) 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 and net realized capital gain sufficient to relieve it from substantially all federal income and excise taxes.
As of and during the period ended April 30, 2021, the fund did not have any liabilities for any uncertain tax positions. The fund recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of Operations. During the period ended April 30, 2021, the fund did not incur any interest or penalties.
Each tax year in the three-year period ended October 31, 2020 remains subject to examination by the Internal Revenue Service and state taxing authorities.
The tax character of distributions paid to shareholders during the fiscal year ended October 31, 2020 was as follows: ordinary income $4,849,095
24
and long-term capital gains $48,670,446. The tax character of current year distributions will be determined at the end of the current fiscal year.
NOTE 2—Bank Lines of Credit:
The fund participates with other long-term open-end funds managed by the Adviser in a $823.5 million unsecured credit facility led by Citibank, N.A. (the “Citibank Credit Facility”) and a $300 million unsecured credit facility provided by The Bank of New York Mellon (the “BNYM Credit Facility”), each to be utilized primarily for temporary or emergency purposes, including the financing of redemptions (each, a “Facility”). The Citibank Credit Facility is available in two tranches: (i) Tranche A is in an amount equal to $688.5 million and is available to all long-term open-ended funds, including the fund, and (ii) Tranche B is an amount equal to $135 million and is available only to BNY Mellon Floating Rate Income Fund, a series of BNY Mellon Investment Funds IV, Inc. In connection therewith, the fund has agreed to pay its pro rata portion of commitment fees for Tranche A of the Citibank Credit Facility and the BNYM Credit Facility. Interest is charged to the fund based on rates determined pursuant to the terms of the respective Facility at the time of borrowing.
The average amount of borrowings outstanding under the Facilities during the period ended April 30, 2021 was approximately $17,127 with a related weighted average annualized interest rate of 1.23%.
NOTE 3—Management Fee, Sub-Investment Advisory Fee and Other Transactions with Affiliates:
(a) Pursuant to a management agreement with the Adviser, the management fee is computed at the annual rate of .75% of the value of the fund’s average daily net assets and is payable monthly.
Pursuant to a sub-investment advisory agreement between the Adviser and the Sub-Adviser, the Adviser pays the Sub-Adviser a fee at an annual rate of .2175% of the value of the fund’s average daily net assets which is payable monthly.
During the period ended April 30, 2021, the Distributor retained $12,100 from commissions earned on sales of the fund’s Class A shares and $829 from CDSC fees on redemptions of the fund’s Class C shares.
(b) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the Act, Class C shares pay the Distributor for distributing its shares at an annual rate of .75% of the value of its average daily net assets. During the period ended April 30, 2021, Class C shares were charged $70,300 pursuant to the Distribution Plan.
25
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
(c) Under the Shareholder Services Plan, Class A and Class C shares pay the Distributor at an annual rate of .25% of the value of their average daily net assets for the provision of certain services. 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 related to the maintenance of shareholder accounts. The Distributor may make payments to Service Agents (securities dealers, financial institutions or other industry professionals) with respect to these services. The Distributor determines the amounts to be paid to Service Agents. During the period ended April 30, 2021, Class A and Class C shares were charged $786,245 and $23,433, respectively, pursuant to the Shareholder Services Plan.
The fund has an arrangement with the transfer agent whereby the fund may receive earnings credits when positive cash balances are maintained, which are used to offset transfer agency fees. For financial reporting purposes, the fund includes net earnings credits, if any, as shareholder servicing costs in the Statement of Operations.
The fund has an arrangement with the custodian whereby the fund will receive interest income or be charged an overdraft fees when cash balances are maintained. For financial reporting purposes, the fund includes this interest income and overdraft fees, if any, as interest income in the Statement of Operations.
The fund compensates BNY Mellon Transfer, Inc., a wholly-owned subsidiary of the Adviser, under a transfer agency agreement for providing transfer agency and cash management services inclusive of earnings credits, if any, for the fund. The majority of transfer agency fees are comprised of amounts paid on a per account basis, while cash management fees are related to fund subscriptions and redemptions. During the period ended April 30, 2021, the fund was charged $50,483 for transfer agency services, inclusive of earnings credit, if any. These fees are included in Shareholder servicing costs in the Statement of Operations.
The fund compensates The Bank of New York Mellon under a custody agreement for providing custodial services for the fund. These fees are determined based on net assets, geographic region and transaction activity. During the period ended April 30, 2021, the fund was charged $28,250 pursuant to the custody agreement.
During the period ended April 30, 2021, the fund was charged $7,766 for services performed by the Chief Compliance Officer and his staff. These fees are included in Chief Compliance Officer fees in the Statement of Operations.
26
The components of “Due to BNY Mellon Investment Adviser, Inc. and affiliates” in the Statement of Assets and Liabilities consist of: management fees of $587,335, Distribution Plan fees of $10,455, Shareholder Services Plan fees of $141,865, custodian fees of $7,600, Chief Compliance Officer fees of $5,242 and transfer agency fees of $17,120.
(d) Each Board member also serves as a Board member of other funds in the BNY Mellon Family of Funds complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.
NOTE 4—Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding short-term securities and forward contracts, during the period ended April 30, 2021, amounted to $49,504,719 and $72,441,569, respectively.
Derivatives: A derivative is a financial instrument whose performance is derived from the performance of another asset. The fund enters into International Swaps and Derivatives Association, Inc. Master Agreements or similar agreements (collectively, “Master Agreements”) with its over-the-counter (“OTC”) derivative contract counterparties in order to, among other things, reduce its credit risk to counterparties. Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under a Master Agreement, the fund may offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment in the event of default or termination.
Each type of derivative instrument that was held by the fund during the period ended April 30, 2021 is discussed below.
Forward Foreign Currency Exchange Contracts: The fund enters into forward contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings, to settle foreign currency transactions or as a part of its investment strategy. When executing forward contracts, the fund is obligated to buy or sell a foreign currency at a specified rate on a certain date in the future. With respect to sales of forward contracts, the fund incurs a loss if the value of the contract increases between the date the forward contract is opened and the date the forward contract is closed. The fund realizes a gain if the value of the contract decreases between those dates. With respect to purchases of forward contracts, the fund incurs a loss if the value of the contract decreases between the date the forward contract is opened and the date the forward contract is closed. The fund realizes a gain if the value of the contract increases between those dates. Any realized or unrealized gains or
27
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
losses which occurred during the period are reflected in the Statement of Operations. The fund is exposed to foreign currency risk as a result of changes in value of underlying financial instruments. The fund is also exposed to credit risk associated with counterparty nonperformance on these forward contracts, which is generally limited to the unrealized gain on each open contract. This risk may be mitigated by Master Agreements, if any, between the fund and the counterparty and the posting of collateral, if any, by the counterparty to the fund to cover the fund’s exposure to the counterparty. Forward contracts open at April 30, 2021 are set forth in the Statement of Forward Foreign Currency Exchange Contracts.
The provisions of ASC Topic 210 “Disclosures about Offsetting Assets and Liabilities” require disclosure on the offsetting of financial assets and liabilities. These disclosures are required for certain investments, including derivative financial instruments subject to Master Agreements which are eligible for offsetting in the Statement of Assets and Liabilities and require the fund to disclose both gross and net information with respect to such investments. For financial reporting purposes, the fund does not offset derivative assets and derivative liabilities that are subject to Master Agreements in the Statement of Assets and Liabilities.
At April 30, 2021, derivative assets and liabilities (by type) on a gross basis are as follows:
Derivative Financial Instruments: |
| Assets ($) |
| Liabilities ($) |
|
Forward contracts |
| 44,757 |
| - |
|
Total gross amount of derivative |
|
|
|
|
|
assets and liabilities in the |
|
|
|
|
|
Statement of Assets and Liabilities |
| 44,757 |
| - |
|
Derivatives not subject to |
|
|
|
|
|
Master Agreements |
| - |
| - |
|
Total gross amount of assets |
|
|
|
|
|
and liabilities subject to |
|
|
|
|
|
Master Agreements |
| 44,757 |
| - |
|
28
The following table presents derivative assets net of amounts available for offsetting under Master Agreements and net of related collateral received or pledged, if any, as of April 30, 2021:
|
|
| Financial |
|
|
|
|
|
| Instruments |
|
|
|
|
|
| and Derivatives |
|
|
|
| Gross Amount of |
| Available | Collateral |
| Net Amount of |
Counterparty | Assets ($) | 1 | for Offset ($) | Received ($) |
| Assets ($) |
Morgan Stanley | 44,757 |
| - | - |
| 44,757 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Absent a default event or early termination, OTC derivative assets and liabilities are presented at gross amounts |
The following summarizes the average market value of derivatives outstanding during the period ended April 30, 2021:
|
| Average Market Value ($) |
Forward contracts |
| 1,797,845 |
At April 30, 2021, accumulated net unrealized appreciation on investments inclusive of derivative contracts was $676,983,844, consisting of $678,916,069 gross unrealized appreciation and $1,932,225 gross unrealized depreciation.
At April 30, 2021, 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).
29
BNY Mellon Worldwide Growth Fund, Inc.
240 Greenwich Street
New York, NY 10286
Adviser
BNY Mellon Investment Adviser, Inc.
240 Greenwich Street
New York, NY 10286
Sub-Adviser
Fayez Sarofim & Co.
Two Houston Center
Suite 2907
909 Fannin Street
Houston, TX 77010
Custodian
The Bank of New York Mellon
240 Greenwich Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
BNY Mellon Transfer, Inc.
240 Greenwich Street
New York, NY 10286
Distributor
BNY Mellon Securities Corporation
240 Greenwich Street
New York, NY 10286
Ticker Symbols: | Class A: PGROX Class C: PGRCX Class I: DPWRX Class Y: DPRIX |
Telephone Call your financial representative or 1-800-373-9387
Mail The BNY Mellon Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144
E-mail Send your request to info@bnymellon.com
Internet Information can be viewed online or downloaded at www.im.bnymellon.com
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-PORT. The fund’s Forms N-PORT are available on the SEC’s website at www.sec.gov.
A description of the policies and procedures that the fund uses to determine how to vote proxies relating to portfolio securities and information regarding how the fund voted these proxies for the most recent 12-month period ended June 30 is available at www.im.bnymellon.com and on the SEC’s website at www.sec.gov and without charge, upon request, by calling 1-800-373-9387.
© 2021 BNY Mellon Securities Corporation |
Item 2. | Code of Ethics. |
Not applicable.
Item 3. | Audit Committee Financial Expert. |
Not applicable.
Item 4. | Principal Accountant Fees and Services. |
Not applicable.
Item 5. | Audit Committee of Listed Registrants. |
Not applicable.
Item 6. | Investments. |
(a) Not applicable.
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Not applicable.
Item 8. | Portfolio Managers of Closed-End Management Investment Companies. |
Not applicable.
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers. |
Not applicable.
Item 10. | Submission of Matters to a Vote of Security Holders. |
There have been no material changes to the procedures applicable to Item 10.
Item 11. | 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 period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.
Item 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. |
Not applicable.
Item 13. | Exhibits. |
(a)(1) Not applicable.
(a)(3) Not applicable.
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.
BNY Mellon Worldwide Growth Fund, Inc.
By: /s/ David DiPetrillo
David DiPetrillo
President (Principal Executive Officer)
Date: June 22, 2021
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/ David DiPetrillo
David DiPetrillo
President (Principal Executive Officer)
Date: June 22, 2021
By: /s/ James Windels
James Windels
Treasurer (Principal Financial Officer)
Date: June 22, 2021
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)