Annual Report Dreyfus
Annual Report Dreyfus
Annual Report Dreyfus
ANNUAL REPORT
October 31, 2016
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F O R M O R E I N F O R M AT I O N
Back Cover
Dreyfus Worldwide Growth
Fund The Fund
A LETTER FROM THE CHIEF EXECUTIVE OFFICER
Dear Shareholder:
We are pleased to present this annual report for Dreyfus Worldwide Growth Fund,
covering the 12-month period from November 1, 2015 through October 31, 2016. For
information about how the fund performed during the reporting period, as well as
general market perspectives, we provide a Discussion of Fund Performance on the
pages that follow.
Stocks and bonds generally advanced over the reporting period in the midst of
heightened market volatility stemming from various global economic developments.
Toward the end of 2015, investor sentiment deteriorated amid sluggish global economic
growth, falling commodity prices, and the first increase in short-term U.S. interest rates
in nearly a decade. These worries sparked sharp stock market declines in January 2016,
but equities began to rally in February when U.S. monetary policymakers refrained from
additional rate hikes, other central banks eased their monetary policies further, and
commodity prices began to rebound. Stocks generally continued to climb through the
summer, driving several broad measures of U.S. stock market performance to record
highs in July and August before moderating as a result of uncertainty regarding U.S.
elections and potential rate hikes. In the bond market, yields of high-quality sovereign
bonds generally moved lower and their prices increased in response to robust investor
demand for current income in a low interest rate environment.
The outcome of the U.S. presidential election and ongoing global economic headwinds
suggest that uncertainty will persist in the financial markets over the foreseeable future.
Some asset classes and industry groups may benefit from a changing economic and
political landscape, while others probably will face challenges. Consequently, selectivity
could become a more important determinant of investment success. As always, we
encourage you to discuss the implications of our observations with your financial
advisor.
Thank you for your continued confidence and support.
Sincerely,
Mark D. Santero
Chief Executive Officer
The Dreyfus Corporation
November 15, 2016
2
DISCUSSION OF FUND PERFORMANCE
For the period from November 1, 2015 through October 31, 2016, as provided by Fayez Sarofim, Portfolio
Manager of Fayez Sarofim & Co., Sub-Investment Adviser
Market and Fund Performance Overview
For the 12-month period ended October 31, 2016, Dreyfus Worldwide Growth Funds Class
A shares produced a total return of 0.20%, Class C shares returned -0.54%, Class I shares
returned 0.47%, and Class Y shares returned 0.56%.1 For the same period, the funds
benchmark, the Morgan Stanley Capital International World Index (the Index), produced a
1.18% total return.2
Global equities posted mildly positive total returns, on average, over the reporting period, as
rallies during the spring and summer generally offset previous losses. The fund produced
lower returns than the Index, mainly due to security selection shortfalls in the health care
and consumer discretionary sectors, as well as relatively light exposure to utilities and
industrials stocks.
The Funds Investment Approach
The fund invests primarily in large, well-established, multinational companies that we believe
are well positioned to weather difficult economic climates and thrive during favorable times.
We focus on purchasing large-cap, blue-chip stocks at a price we consider to be justified by a
companys fundamentals. The result is a portfolio of stocks of prominent companies
selected for what we consider to be sustained patterns of profitability, strong balance sheets,
expanding global presence, and above-average earnings growth potential. The fund pursues a
buy-and-hold investment strategy in which we typically buy and sell relatively few stocks
during the course of the year, which may help to reduce investors tax liabilities and the
funds trading costs.3
Global Stocks Advanced Despite Headwinds
The Index pressed higher over the reporting period on its way to recording a low single-digit
gain despite sharp sell-offs in January and June and a series of downward revisions to global
growth estimates. Political risks weighed on global equity performance throughout as the
surprise outcome of the U.K. Brexit referendum, skepticism over an OPEC production cut,
and uncertainty leading up to the U.S. presidential election fueled spikes in volatility.
Unprecedented central bank intervention added to the uncertainty, with the Federal Reserve
Board preparing markets for a rate hike while the European Central Bank and the Bank of
Japan considered further unconventional easing measures. Developed markets outperformed
emerging markets during the first half of the reporting period, but a combination of stable
commodity prices and a range-bound U.S. dollar saw leadership shift to emerging-markets
equities over the summer. The materials and information technology sectors were the
strongest segments of the Index for the full reporting period. The health care, financials, and
consumer discretionary sectors were the only three segments of the Index to register losses.
Fund Strategies Produced Mixed Results
The funds relative positioning within the United States and limited exposure to U.K.-based
equities proved constructive, but these benefits were largely undercut by overweighted
3
DISCUSSION OF FUND PERFORMANCE (continued)
positions in Switzerland and France. The net effect of our stock selection strategy was
negative, but the impact was entirely offset by favorable economic sector allocations.
Factors that detracted from the funds performance compared to its benchmark included
weakness among pharmaceutical and biotechnology holdings in the health care sector.
Limited and selectively focused representation in the top-performing materials sector and an
underweighted allocation to industrials stocks also weighed on relative returns. Positions that
detracted most from the funds relative performance included Novo Nordisk, Roche
Holding, Air Liquide, Gilead Sciences, and Apple.
On the other hand, a substantially overweighted allocation to the consumer staples sector
was a primary factor supporting relative performance. An underweighted allocation to the
weak financials sector was likewise advantageous, augmented by selective positioning within
the banking and insurance industries. Our strategic emphasis on the energy sector, including
the avoidance of relatively volatile oilfield services and equipment stocks, also added a
degree of value. The largest positive contributors to the funds return for the reporting
period were Philip Morris International, Facebook, Chevron, Texas Instruments, and Altria
Group.
Maintaining a Focus on Quality Companies
The global investment backdrop is expected to improve modestly as U.S. election risks
recede and worldwide economic prospects gradually improve, but the stock market appears
likely to remain constrained by later-cycle dynamics and mediocre growth. Historically, in
environments in which stability and growth are scarce, markets have rewarded high-quality
companies with strong and improving operating metrics. The funds disciplined investment
approach emphasizes multinational industry leaders with stable earnings streams, disciplined
cost controls and compelling valuations. These companies are better able to sustain free cash
flow and increase dividends in periods of rising wage inflation, a characteristic we believe will
have added appeal as expectations of slow growth become more ingrained.
November 15, 2016
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 funds prospectus.
1 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 monthly reinvestment of dividends and, where applicable, capital gain distributions. The Morgan
Stanley Capital International World Index is designed to measure global equity performance of developed markets. The index
includes 24 MSCI national developed market indices. Investors cannot invest directly in any index.
3 Achieving tax efficiency is not a part of the funds 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.
4
FUND PERFORMANCE
12,000
9,500
7,000
06 07 08 09 10 11 12 13 14 15 16
5
FUND PERFORMANCE (continued)
Inception
Date 1 Year 5 Years 10 Years
Class A shares
with maximum sales charge (5.75%) 7/15/93 -5.57% 6.46% 4.63%
without sales charge 7/15/93 0.20% 7.74% 5.25%
Class C shares
with applicable redemption charge 6/21/95 -1.46% 6.94% 4.48%
without redemption 6/21/95 -0.54% 6.94% 4.48%
Class I shares 3/4/96 0.47% 8.02% 5.53%
Class Y shares 7/1/13 0.56% 8.16% 5.46%
Morgan Stanley Capital International
World Index 1.18% 9.03% 3.89%
Past performance is not predictive of future performance. The funds performance shown in the graph and table does not reflect the
deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. In addition to the performance of
Class A shares shown with and without a maximum sales charge, the funds performance shown in the table takes into account all other
applicable fees and expenses on all classes.
The maximum contingent deferred sales charge for Class C shares is 1% for shares redeemed within one year of the date of purchase.
The total return performance figures presented for Class Y shares of the fund reflect the performance of the funds Class A shares for
the period prior to 7/1/13 (the inception date for Class Y shares), not reflecting the applicable sales charges for Class A shares.
6
UNDERSTANDING YOUR FUNDS 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 funds prospectus or talk to your financial adviser.
Review your funds expenses
The table below shows the expenses you would have paid on a $1,000 investment in
Dreyfus Worldwide Growth Fund from May 1, 2016 to October 31, 2016. It also shows
how much a $1,000 investment would be worth at the close of the period, assuming actual
returns and expenses.
7
STATEMENT OF INVESTMENTS
October 31, 2016
9
STATEMENT OF INVESTMENTS (continued)
10
Portfolio Summary (Unaudited) Value (%)
Food, Beverage & Tobacco 24.9
Pharmaceuticals, Biotechnology & Life Sciences 10.7
Energy 9.0
Consumer Durables & Apparel 8.9
Software & Services 8.8
Household & Personal Products 6.1
Money Market Investments 6.1
Technology Hardware & Equipment 5.7
Media 4.0
Food & Staples Retailing 3.8
Semiconductors & Semiconductor Equipment 3.7
Diversified Financials 3.5
Transportation 2.6
Insurance 2.3
Consumer Services 1.7
Materials 1.4
Health Care Equipment & Services 1.3
Banks 1.2
105.7
11
STATEMENT OF ASSETS AND LIABILITIES
October 31, 2016
Cost Value
Assets ($):
Investments in securitiesSee Statement of Investments
(including securities on loan, valued at $33,984,228)Note 1(c):
Unaffiliated issuers 255,301,062 583,615,697
Affiliated issuers 35,832,881 35,832,881
Cash 302,461
Receivable for investment securities sold 1,130,987
Dividends and securities lending income receivable 641,033
Receivable for shares of Common Stock subscribed 418,879
Prepaid expenses 35,642
621,977,580
Liabilities ($):
Due to The Dreyfus Corporation and affiliatesNote 3(c) 583,231
Liability for securities on loanNote 1(c) 34,678,128
Payable for shares of Common Stock redeemed 633,574
Accrued expenses 181,073
36,076,006
Net Assets ($) 585,901,574
Composition of Net Assets ($):
Paid-in capital 221,208,320
Accumulated distributions in excess of investment incomenet (426,386)
Accumulated net realized gain (loss) on investments 36,805,665
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions 328,313,975
Net Assets ($) 585,901,574
12
STATEMENT OF OPERATIONS
Year Ended October 31, 2016
13
STATEMENT OF CHANGES IN NET ASSETS
14
Year Ended October 31,
2016 2015
Capital Share Transactions (Shares):
Class A
Shares sold 438,317 558,637
Shares issued for dividends reinvested 578,881 294,695
Shares redeemed (1,391,849) (1,423,485)
Net Increase (Decrease) in Shares Outstanding (374,651) (570,153)
Class Ca
Shares sold 65,686 97,511
Shares issued for dividends reinvested 78,185 37,206
Shares redeemed (292,627) (254,307)
Net Increase (Decrease) in Shares Outstanding (148,756) (119,590)
Class Ia
Shares sold 656,935 690,475
Shares issued for dividends reinvested 182,671 97,481
Shares redeemed (1,062,367) (633,879)
Net Increase (Decrease) in Shares Outstanding (222,761) 154,077
Class Ya
Shares sold 537,633 102,755
Shares issued for dividends reinvested 9,905 918
Shares redeemed (66,712) (22,161)
Net Increase (Decrease) in Shares Outstanding 480,826 81,512
a During the period ended October 31, 2016, 195,624 Class I shares representing $10,025,717 were exchanged for 195,471
Class Y shares and 5,704 Class C shares representing $254,040 were exchanged for 5,091 Class I shares.
See notes to financial statements.
15
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the fiscal periods
indicated. All information (except portfolio turnover rate) reflects financial results for a
single fund share. Total return shows how much your investment in the fund would have
increased (or decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the funds financial statements.
16
Year Ended October 31,
Class C Shares 2016 2015 2014 2013 2012
Per Share Data ($):
Net asset value, beginning of period 48.93 50.33 47.09 41.18 38.47
Investment Operations:
Investment incomeneta .30 .42 .35 .34 .29
Net realized and unrealized
gain (loss) on investments (.63) (.10) 3.36 6.16 3.97
Total from Investment Operations (.33) .32 3.71 6.50 4.26
Distributions:
Dividends from
investment incomeneta (.35) (.54) (.47) (.39) (.46)
Dividends from net realized
gain on investments (3.35) (1.18) (.20) (1.09)
Total Distributions (3.70) (1.72) (.47) (.59) (1.55)
Net asset value, end of period 44.90 48.93 50.33 47.09 41.18
Total Return (%)b (.54) .73 7.91 15.92 11.57
Ratios/Supplemental Data (%):
Ratio of total expenses
to average net assets 1.93 1.91 1.91 1.93 1.97
Ratio of net expenses
to average net assets 1.93 1.91 1.91 1.93 1.97
Ratio of net investment income
to average net assets .66 .86 .71 .77 .74
Portfolio Turnover Rate 5.51 5.38 2.01 2.97 2.41
Net Assets, end of period ($ x 1,000) 51,906 63,848 71,683 70,468 63,136
a Based on average shares outstanding.
b Exclusive of sales charge.
See notes to financial statements.
17
FINANCIAL HIGHLIGHTS (continued)
18
Year Ended October 31,
Class Y Shares 2016 2015 2014 2013a
Per Share Data ($):
Net asset value, beginning of period 54.52 55.81 52.11 48.38
Investment Operations:
Investment incomenetb .69 .97 .92 .18
Net realized and unrealized
gain (loss) on investments (.51) (.01) 3.77 3.88
Total from Investment Operations .18 .96 4.69 4.06
Distributions:
Dividends from investment incomenet (.86) (1.07) (.99) (.33)
Dividends from net realized
gain on investments (3.35) (1.18)
Total Distributions (4.21) (2.25) (.99) (.33)
Net asset value, end of period 50.49 54.52 55.81 52.11
Total Return (%) .56 1.84 9.10 8.41c
Ratios/Supplemental Data (%):
Ratio of total expenses
to average net assets .86 .84 .85 .79d
Ratio of net expenses
to average net assets .86 .84 .85 .79d
Ratio of net investment income
to average net assets 1.41 1.74 1.51 1.10d
Portfolio Turnover Rate 5.51 5.38 2.01 2.97
Net Assets, end of period ($ x 1,000) 28,522 4,581 141 1
a From the close of business on July 1, 2013 (commencement of initial offering) to October 31, 2013.
b Based on average shares outstanding.
c Not annualized.
d Annualized.
See notes to financial statements.
19
NOTES TO FINANCIAL STATEMENTS
20
(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 funds investments
relating to fair value measurements. These inputs are summarized in the
three broad levels listed below:
Level 1unadjusted quoted prices in active markets for identical
investments.
Level 2other significant observable inputs (including quoted prices
for similar investments, interest rates, prepayment speeds, credit risk,
etc.).
Level 3significant unobservable inputs (including the funds 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 funds investments are as follows:
Investments in 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 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.
21
NOTES TO FINANCIAL STATEMENTS (continued)
22
Level 3 -
Level 1 - Level 2 - Other Significant
Unadjusted Significant Unobservable
Quoted Prices Observable Inputs Inputs Total
Assets ($)
Investments in Securities:
Equity Securities -
Domestic
Common
Stocks 352,386,499 352,386,499
Equity Securities -
Foreign
Common
Stocks 231,229,198 231,229,198
Mutual Funds 35,832,881 35,832,881
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. Collateral is either in the form
of cash, which can be invested in certain money market mutual funds
managed by Dreyfus, 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 funds 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 October 31, 2016, The Bank of New York
Mellon earned $18,805 from lending portfolio securities, pursuant to the
securities lending agreement.
(d) Affiliated issuers: Investments in other investment companies
advised by Dreyfus are defined as affiliated under the Act. Investments
in affiliated investment companies during the period ended October 31,
2016 were as follows:
Affiliated
Investment Value Value Net
Company 10/31/2015 ($) Purchases ($) Sales ($) 10/31/2016 ($) Assets (%)
Dreyfus
Institutional
Cash
Advantage
Fund,
Institutional
Shares 19,547,726 252,951,482 272,499,208
Dreyfus
Institutional
Preferred
Government
Plus Money
Market Fund 2,157,823 65,499,060 66,502,130 1,154,753 .2
24
Affiliated
Investment Value Value Net
Company 10/31/2015 ($) Purchases ($) Sales ($) 10/31/2016 ($) Assets (%)
Dreyfus
Institutional
Preferred
Money
Market Fund,
Hamilton
Shares 59,408,507 24,730,379 34,678,128 5.9
Total 21,705,549 377,859,049 363,731,717 35,832,881 6.1
During the period ended October 31, 2016, Dreyfus Institutional Cash Advantage Fund was acquired by
Dreyfus Institutional Preferred Money Market Fund.
Formerly Dreyfus Institutional Preferred Plus Money Market Fund.
25
NOTES TO FINANCIAL STATEMENTS (continued)
26
(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 October 31, 2016, Class C shares were charged $433,179
pursuant to the Distribution Plan.
(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
October 31, 2016, Class A and Class C shares were charged $1,003,431 and
$144,393, respectively, pursuant to the Shareholder Services Plan.
The fund has arrangements with the transfer agent and the custodian
whereby the fund may receive earnings credits when positive cash balances
are maintained, which are used to offset transfer agency and custody fees.
For financial reporting purposes, the fund includes net earnings credits as
an expense offset in the Statement of Operations.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary
of Dreyfus, under a transfer agency agreement for providing transfer
agency and cash management services 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 October 31, 2016, the fund was
charged $174,864 for transfer agency services and $10,961 for cash
management services. These fees are included in Shareholder servicing
costs in the Statement of Operations. Cash management fees were partially
offset by earnings credits of $4,487.
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 October 31, 2016, the fund was charged $87,856
pursuant to the custody agreement.
During the period ended October 31, 2016, the fund was charged $9,804
for services performed by the Chief Compliance Officer and his staff.
27
NOTES TO FINANCIAL STATEMENTS (continued)
28
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
29
IMPORTANT TAX INFORMATION (Unaudited)
For federal tax purposes, the fund hereby reports 99.18% of the ordinary dividends paid
during the fiscal year ended October 31, 2016 as qualifying for the corporate dividends
received deduction. Also, certain dividends paid by the fund may be subject to a
maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief
Reconciliation Act of 2003. Of the distributions paid during the fiscal year, $8,072,979
represents the maximum amount that may be considered qualified dividend income.
Shareholders will receive notification in early 2017 of the percentage applicable to the
preparation of their 2016 income tax returns. The fund also hereby reports $3.3480 per
share as a long-term capital gain distribution paid on December 30, 2015.
30
INFORMATION ABOUT THE RENEWAL OF THE FUNDS
MANAGEMENT AND SUB-INVESTMENT ADVISORY
AGREEMENTS (Unaudited)
At a meeting of the funds Board of Directors held on July 19, 2016, the Board
considered the renewal of the funds Management Agreement, pursuant to which
Dreyfus provides the fund with investment advisory and administrative services (the
Agreement), and the Sub-Investment Advisory Agreement (together, the
Agreements), pursuant to which Fayez Sarofim & Co. (the Subadviser) provides
day-to-day management of the funds investments. The Board members, none of whom
are interested persons (as defined in the Investment Company Act of 1940, as
amended) of the fund, were assisted in their review by independent legal counsel and
met with counsel in executive session separate from representatives of Dreyfus and the
Subadviser. In considering the renewal of the Agreements, the Board considered all
factors that it believed to be relevant, including those discussed below. The Board did
not identify any one factor as dispositive, and each Board member may have attributed
different weights to the factors considered.
Analysis of Nature, Extent, and Quality of Services Provided to the Fund. The Board
considered information provided to them at the meeting and in previous presentations
from Dreyfus representatives regarding the nature, extent, and quality of the services
provided to funds in the Dreyfus fund complex. Dreyfus provided the number of open
accounts in the fund, the funds asset size and the allocation of fund assets among
distribution channels. Dreyfus also had previously provided information regarding the
diverse intermediary relationships and distribution channels of funds in the Dreyfus
fund complex (such as retail direct or intermediary, in which intermediaries typically are
paid by the fund and/or Dreyfus) and Dreyfus corresponding need for broad, deep,
and diverse resources to be able to provide ongoing shareholder services to each
intermediary or distribution channel, as applicable to the fund.
The Board also considered research support available to, and portfolio management
capabilities of, the funds portfolio management personnel and that Dreyfus also
provides oversight of day-to-day fund operations, including fund accounting and
administration and assistance in meeting legal and regulatory requirements. The Board
also considered Dreyfus extensive administrative, accounting, and compliance
infrastructures, as well as Dreyfus supervisory activities over the Subadviser. The Board
also considered portfolio managements brokerage policies and practices (including
policies and practices regarding soft dollars) and the standards applied in seeking best
execution.
Comparative Analysis of the Funds Performance and Management Fee and Expense
Ratio. The Board reviewed reports prepared by Broadridge Financial Solutions, Inc.
(Broadridge), an independent provider of investment company data, which included
information comparing (1) the funds performance with the performance of a group of
comparable funds (the Performance Group) and with a broader group of funds (the
Performance Universe), all for various periods ended May 31, 2016, and (2) the funds
actual and contractual management fees and total expenses with those of a group of
31
INFORMATION ABOUT THE RENEWAL OF THE FUNDS MANAGEMENT AND SUB-
INVESTMENT ADVISORY AGREEMENTS (Unaudited) (continued)
comparable funds (the Expense Group) and with a broader group of funds (the
Expense Universe), the information for which was derived in part from fund financial
statements available to Broadridge as of the date of its analysis. Dreyfus previously had
furnished the Board with a description of the methodology Broadridge used to select
the Performance Group and Performance Universe and the Expense Group and
Expense Universe.
Dreyfus representatives stated that the usefulness of performance comparisons may be
affected by a number of factors, including different investment limitations that may be
applicable to the fund and comparison funds. They also noted that performance
generally should be considered over longer periods of time, although it is possible that
long-term performance can be adversely affected by even one period of significant
underperformance so that a single investment decision or theme has the ability to affect
disproportionately long-term performance. The Board discussed the results of the
comparisons and noted that the funds total return performance was at or above the
Performance Group median for all periods except the three- and four-year periods, and
above the Performance Universe median for the one-, five- and ten-year periods.
Dreyfus also provided a comparison of the funds calendar year total returns to the
returns of the funds benchmark index, and it was noted that the funds returns were
above the returns of the index in five of the ten calendar years shown.
The Board discussed with representatives of Dreyfus and the Subadviser the investment
strategy employed in the management of the funds assets and how that strategy affected
the funds performance. They discussed, among other matters, plans for increased
management focus on ways to improve the funds performance. The Board members
noted that the Subadviser is an experienced manager with a long-term buy-and-hold
investment approach to investing in high quality, mega-cap companies. The
Subadvisers considerable reputation, based on following this investment approach, was
noted.
The Board also reviewed the range of actual and contractual management fees and total
expenses of the Expense Group and Expense Universe funds and discussed the results
of the comparisons. The Board noted that the funds contractual management fee was
the lowest in the Expense Group, and the funds actual management fee and total
expenses were the lowest in the Expense Group and below the Expense Universe
median.
Dreyfus representatives reviewed with the Board the management or investment
advisory fees (1) paid by funds advised or administered by Dreyfus that are in the same
Broadridge category as the fund and (2) paid to Dreyfus or the Subadviser or its
affiliates for advising any separate accounts and/or other types of client portfolios that
are considered to have similar investment strategies and policies as the fund (the
Similar Clients), and explained the nature of the Similar Clients. They discussed
differences in fees paid and the relationship of the fees paid in light of any differences in
the services provided and other relevant factors. The Board considered the relevance of
32
the fee information provided for the Similar Clients to evaluate the appropriateness of
the funds management fee.
The Board considered the fee to the Subadviser in relation to the fee paid to Dreyfus by
the fund and the respective services provided by the Subadviser and Dreyfus. The Board
also noted the Subadvisers fee is paid by Dreyfus (out of its fee from the fund) and not
the fund.
Analysis of Profitability and Economies of Scale. Dreyfus representatives reviewed the
expenses allocated and profit received by Dreyfus and its affiliates and the resulting
profitability percentage for managing the fund and the aggregate profitability percentage
to Dreyfus and its affiliates for managing the funds in the Dreyfus fund complex, and
the method used to determine the expenses and profit. The Board concluded that the
profitability results were not unreasonable, given the services rendered and service levels
provided by Dreyfus. The Board also had been provided with information prepared by
an independent consulting firm regarding Dreyfus approach to allocating costs to, and
determining the profitability of, individual funds and the entire Dreyfus fund complex.
The consulting firm also had analyzed where any economies of scale might emerge in
connection with the management of a fund.
The Board considered on the advice of its counsel the profitability analysis (1) as part of
its evaluation of whether the fees under the Agreements, considered in relation to the
mix of services provided by Dreyfus and the Subadviser, including the nature, extent
and quality of such services, supported the renewal of the Agreements and (2) in light of
the relevant circumstances for the fund and the extent to which economies of scale
would be realized if the fund grows and whether fee levels reflect these economies of
scale for the benefit of fund shareholders. Since Dreyfus, and not the fund, pays the
Subadviser pursuant to the Sub-Investment Advisory Agreement, the Board did not
consider the Subadvisers profitability to be relevant to its deliberations. Dreyfus
representatives noted that a discussion of economies of scale is predicated on a fund
having achieved a substantial size with increasing assets and that, if a funds assets had
been stable or decreasing, the possibility that Dreyfus may have realized any economies
of scale would be less. Dreyfus representatives also noted that, as a result of shared and
allocated costs among funds in the Dreyfus fund complex, the extent of economies of
scale could depend substantially on the level of assets in the complex as a whole, so that
increases and decreases in complex-wide assets can affect potential economies of scale
in a manner that is disproportionate to, or even in the opposite direction from, changes
in the funds asset level. The Board also considered potential benefits to Dreyfus and
the Subadviser from acting as investment adviser and sub-investment adviser,
respectively, and noted the soft dollar arrangements in effect for trading the funds
investments.
At the conclusion of these discussions, the Board agreed that it had been furnished with
sufficient information to make an informed business decision with respect to the
33
INFORMATION ABOUT THE RENEWAL OF THE FUNDS MANAGEMENT AND SUB-
INVESTMENT ADVISORY AGREEMENTS (Unaudited) (continued)
34
BOARD MEMBERS INFORMATION (Unaudited)
INDEPENDENT BOARD MEMBERS
35
BOARD MEMBERS INFORMATION (Unaudited) (continued)
INDEPENDENT BOARD MEMBERS (continued)
36
OFFICERS OF THE FUND (Unaudited)
37
OFFICERS OF THE FUND (Unaudited) (continued)
38
NOTES
39
NOTES
40
NOTES
41
For More Information
Dreyfus Worldwide Growth Fund Custodian
200 Park Avenue The Bank of New York Mellon
New York, NY 10166 225 Liberty Street
Investment Adviser New York, NY 10286
The Dreyfus Corporation Transfer Agent &
200 Park Avenue Dividend Disbursing Agent
New York, NY 10166 Dreyfus Transfer, Inc.
Sub-Investment Adviser 200 Park Avenue
New York, NY 10166
Fayez Sarofim & Co.
Two Houston Center Distributor
Suite 2907 MBSC Securities Corporation
909 Fannin Street 200 Park Avenue
Houston, TX 77010 New York, NY 10166
Ticker Symbols: Class A: PGROX Class C: PGRCX Class I: DPWRX Class Y: DPRIX
Telephone Call your financial representative or 1-800-DREYFUS
Mail The Dreyfus Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-
0144
E-mail Send your request to info@dreyfus.com
Internet Information can be viewed online or downloaded at www.dreyfus.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-Q. The
funds Forms N-Q are available on the SECs website at www.sec.gov and may be reviewed
and copied at the SECs Public Reference Room in Washington, DC. (phone 1-800-SEC-
0330 for information).
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.dreyfus.com
and on the SECs website at www.sec.gov and without charge, upon request, by calling 1-
800-DREYFUS.