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FORTIS
GLOBAL GROWTH
PORTFOLIO
Annual Report
October 31, 1996
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FORTIS GLOBAL GROWTH PORTFOLIO ANNUAL REPORT
CONTENTS
LETTER TO SHAREHOLDERS 1
SCHEDULE OF INVESTMENTS 5
STATEMENT OF ASSETS AND LIABILITIES 9
STATEMENT OF OPERATIONS 10
STATEMENTS OF CHANGES IN NET ASSETS 11
NOTES TO FINANCIAL STATEMENTS 12
INDEPENDENT AUDITORS' REPORT 15
BOARD OF DIRECTORS AND OFFICERS 16
PRODUCTS AND SERVICES 17
- - TOLL-FREE PERSONAL ASSISTANCE
- Shareholder Services
- (800) 800-2638, Ext. 3012
- 7:30 a.m. to 5:30 p.m. CST, M-Th
- 7:30 a.m. to 5:00 p.m. CST, F
- - TOLL-FREE INFORMATION LINE
- For daily account balances,
transaction activity or net asset
value information
- (800) 800-2638, Ext. 4344
- 24 hours a day
FOR MORE INFORMATION ABOUT FORTIS FINANCIAL GROUP'S FAMILY OF PRODUCTS, CALL
YOUR INVESTMENT REPRESENTATIVE OR THE HOME OFFICE AT (800) 800-2638.
TO ORDER PROSPECTUSES OR SALES LITERATURE FOR ANY FORTIS PRODUCT, CALL (800)
800-2638, EXT. 4579.
HOW TO USE THIS REPORT
For a quick overview of the fund's performance during the past year, refer to
the Highlights box below. The letter from the portfolio manager and president
provides a more detailed analysis of the fund and financial markets.
The charts alongside the letter are useful because they provide more information
about your investments. The top holdings chart shows the types of securities in
which the fund invests, and the pie chart shows a breakdown of the fund's assets
by country. The portfolio changes show the investment decisions your fund
manager has made over the period in response to changing market conditions.
The performance chart graphically compares the fund's total return performance
with a selected investment index. Remember, however, that an index may reflect
the performance of securities the fund may not hold. Also, the index does not
deduct sales charges, investment advisory fees and other fund expenses, whereas
your fund does. Individuals cannot buy an unmanaged index fund without incurring
some charges and expenses.
This report is just one of several tools you can use to learn more about your
investment in the Fortis Family of Mutual Funds. Your investment representative,
who understands your personal financial situation, can best explain the features
of your investment and how it's designed to help you meet your financial goals.
HIGHLIGHTS
FOR THE YEAR ENDED OCTOBER 31, 1996
<TABLE>
<CAPTION>
MSCI
WORLD
CLASS A CLASS B CLASS C CLASS H INDEX
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE PER SHARE:
Beginning of period................... $ 18.24 $ 18.12 $ 18.13 $ 18.12 691.60
End of period......................... $ 21.28 $ 20.98 $ 21.00 $ 20.99 791.75
TOTAL RETURN** 16.67% 15.78% 15.83% 15.84% 16.84%
** These are the fund's total returns during the period, including reinvestment of all dividend and
capital gains distributions without adjustments for sales charge.
</TABLE>
<PAGE>
Photo
Global investing
makes a world of difference.
DEAR SHAREHOLDER,
In today's fast-paced world, you deserve solid answers to your financial
questions. The Fortis solution you chose to help you achieve your financial
needs and goals, the Fortis Global Growth Portfolio, seeks growth opportunities
around the world.
This reporting period marks a significant milestone for this portfolio. In July
1996, the Fortis Global Growth Portfolio realized five years of positive
performance results (Class A Shares). We are pleased to present the Fortis
Global Growth Portfolio, Inc. (FGGP) annual report for the year ended October
31, 1996.
A PERFORMANCE SNAPSHOT
During the 12-month period ended October 31, 1996, FGGP had a total return of
16.67% (Class A without sales load), which compared to an increase of 16.84% for
the Morgan Stanley Capital International World Index (MSCI). Since its inception
in July 1991, FGGP's total return has been 112.26%, which compares to a total
return of 85.03% for the MSCI World Index. We are pleased with our longer term
performance results and hope that shareholders will continue to have confidence
in our global growth approach to investing.
As a global portfolio, FGGP has the flexibility to invest in a variety of stock
markets around the world, including the United States. At fiscal year end, the
portfolio was highly diversified with 113 individual investments in 28 nations.
Foreign holdings in the portfolio represented 48.2% of total net assets;
holdings in the United States represented 36.8%; cash equivalents totaled 15%.
The respective weightings of the MSCI World Index were 43% in the U.S. and 57%
in foreign markets.
Our investment focus is on companies with strong market positions and superior
growth prospects. When researching potential investments, we look for
well-managed companies with a focused growth strategy and an ability to finance
future growth. Companies that dominate their respective market niches tend to
have higher than average returns for shareholders.
LOW INFLATION, MODERATE GROWTH CREATE POSITIVE ENVIRONMENT
This year, the portfolio's performance was affected by several factors. These
include concerns over an inflationary pressure from rising wages, rising
interest rates, and slowing corporate earnings growth rates. For most of 1996,
financial market observers were concerned about the strength of the U.S. economy
and the negative impact it could have on rising inflation and interest rates. We
believe the world's economy is growing at a moderate pace and inflation does not
pose a serious threat, creating a positive environment for growth stocks.
Presently, some observers of the United States economy are concerned about a
slowdown in growth and disappointing earnings, since the country is in its fifth
year of economic recovery. These concerns are magnified by the strong
performance of the stock markets and the reaction of stock prices to any
earnings disappointments. We have attempted to limit specific company risk
through greater diversification, both by geography and by the number of holdings
in the portfolio.
POSITIVE GROWTH OUTLOOK
In our opinion, the outlook for investing in high growth companies could hardly
be better. Moderately growing economies with low inflation and low interest
rates are an ideal setting for growth stocks. Companies with highly cyclical
businesses will continue to struggle in a low inflation environment. By
definition, it has become difficult for most companies to raise prices to offset
rising costs. Yet we feel companies with high unit growth for their products and
services should continue to demonstrate solid earnings advances even in a
moderately growing economy.
1
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A LOOK AT GLOBAL OPPORTUNITIES
The growth of the world's economy has remained moderate since the recession of
1991. A major factor has been the poor performance of the Japanese economy.
Today Japan continues its struggle to demonstrate a sustainable recovery from
the "bubble" economy of the late 1980s. The Japanese banking system is under
financial pressure, which has delayed the expected economic recovery.
The growth of European economies also has been disappointing. While some
recovery is anticipated, many issues need to be resolved if Europe intends to be
competitive in world markets over the longer term. As we mentioned, the United
States has demonstrated acceptable growth in recent years and will likely
continue to grow at a moderate pace. Other parts of the world such as Central
Europe and the Far East continue to have strong relative growth prospects. Latin
America is also in an economic recovery phase. Overall we anticipate a world
economy that is neither strong nor weak. This is a favorable scenario for
investing in financial assets.
Since its inception in 1991, FGGP has had a significant exposure to the United
States market. At the end of this reporting period, U.S. equities represented
36.8% of FGGP's total net assets. As we search the world for companies with
superior growth prospects, we continue to find that the United States offers the
best selection of well managed companies properly positioned for future growth.
In today's highly competitive global environment, corporations are willing to
invest in software based systems that reduce their cost of doing business
through gains in productivity. Interestingly, many of the leading technologies
of tomorrow originate in the United States. Areas such as computer networking
systems and software, client server applications software, and data-based
software systems will continue to be key driving forces in the world's economy.
At the close of this fiscal year, FGGP had invested 15% in software-based
solution companies in these areas.
FGGP has also been successful in finding solid growth companies in Europe, which
represented 30% of FGGP's total net assets as of October 31, 1996. We focused on
niche-oriented growth companies that did not depend on general economic trends.
Historically, European investors had a limited selection of companies involved
in rapidly growing industries. Yet we sense this situation is gradually
changing, as Europeans are now focusing on corporate restructuring and venture
capital formation. This could lead to greater investment choices for growth
investors over time.
As of October 31, 1996, your FGGP held 6% in Japanese-based companies. Our
investment focus was on the growing areas such as cellular telecommunications
and consumer export companies, which benefit by the declining value of the yen.
The emerging market sector represents about 10% of FGGP's total net assets.
Recently, we have noticed a slow down in economic growth in several emerging
regions such as the Far East, which includes Thailand, Singapore, Hong Kong, and
China. Although these trends could reverse in the future, several of these
countries are approaching a more developed stage in their economic life cycle.
We have focused on strong, regional companies in Asia as they will likely
benefit from increased trade among the various nations of the Far East.
2
<PAGE>
UNIQUE CONDITIONS FAVOR LONG-TERM OUTLOOK
We believe that the long-term outlook for global investing remains highly
favorable. The main reasons are low worldwide interest rates, abundant monetary
liquidity and an aging population. The baby boom generation is being forced to
save now for the upcoming retirement years. This is true not only in the U.S.
but in Europe and Japan, as well. Therefore, we feel the demand for financial
assets will likely remain strong due to these powerful demographic trends.
THANK YOU FOR YOUR INVESTMENT
In today's changing economic and investment climates around the world, potential
growth opportunities constantly present themselves. We appreciate your
investment in the Fortis Global Growth Portfolio over the past year, and we look
forward to nurturing it for years to come. If you have any questions, please
call us or your investment professional.
Sincerely,
[SIGNATURE] [SIGNATURE]
Dean C. Kopperud James S. Byrd
President Vice President
NOVEMBER 13, 1996
3
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FORTIS GLOBAL GROWTH PORTFOLIO
PORTFOLIO DIVERSIFICATION BY COUNTRY AS OF 10/31/96
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GLOBAL GROWTH PORTFOLIO
PORTFOLIO DIVERSIFICATION BY COUNTRY AS OF
10/31/96
United States 36.8%
<S> <C>
Other 14.8%
Cash Equivalents/Receivables 15.0%
Japan 6.0%
Germany 5.5%
Netherlands 5.2%
Sweden 3.7%
United Kingdom 3.0%
Finland 2.7%
Austria 2.6%
Italy 2.5%
France 2.2%
</TABLE>
TOP TEN HOLDINGS AS OF 10/31/96
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. SAP AG Systeme Preferred (Germany) 2.6%
2. Gartner Group, Inc. Class A (US) 2.3%
3. Nokia (AB) (Finland) 2.2%
4. SGL Carbon AG (Germany) 2.0%
5. Wisconsin Central Transportation Corp. (US) 2.0%
6. Randstad Holdings (Netherlands) 1.9%
7. Cisco Systems, Inc. (US) 1.8%
8. 3Com Corp. (US) 1.7%
9. Fila Holdings ADR (Italy) 1.7%
10. Barco (Belgium) 1.6%
</TABLE>
CLASS B, C AND H AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
<CAPTION>
Since
1 Year Inception+
- -------------------------------------------------------------
<S> <C> <C>
Class B sharesDiamond 15.78% 20.27%
Class B sharesDiamond Diamond 12.18% 18.72%
Class C sharesDiamond 15.83% 20.33%
Class C sharesDiamond Diamond 14.83% 20.33%
Class H sharesDiamond 15.84% 20.30%
Class H sharesDiamond Diamond 12.24% 18.76%
</TABLE>
Past performance is not indicative of future performance. Total returns include
reinvestment of all dividend and capital gains distributions. The performance of
the separate classes (A, B, C, and H) will vary based on the differences in
sales loads and distribution fees paid by shareholders investing in the
different classes. Class A has a maximum sales charge of 4.75%, Class B and H
have a CDSC of 4.00% (with a waiver of 10% of the amount invested) if redeemed
within two years of purchase, and Class C has a CDSC of 1.00% if redeemed within
one year of purchase.
Diamond Without CDSC.
Diamond With CDSC. Assumes redemption on October 31, 1996.
Diamond
+ Since November 14, 1994 -- Date shares were first offered to the public.
VALUE OF $10,000 INVESTED JULY 8, 1991
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GLOBAL GROWTH PORTFOLIO CLASS A
VALUE OF $10,000 INVESTED JULY 8, 1991
MSCI World Index*** Global Growth Portfolio Class A
<S> <C> <C> <C> <C>
7-91 10,000 9,950
10-91 10,900 10,329
10-92 10,411 10,974
10-93 13,306 13,736
10-94 14,393 14,079
10-95 15,836 17,375
10-96 18,503 20,219
1 Year 5 Year Since July 8, 1991@
With Sales Charge* +11.13% +13.33% +14.15%
Wothout Sales Charge** +16.67% +14.44% +15.20%
</TABLE>
Annual period ended October 31, 1996
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions and the reduction due to the maximum sales
charge of 4.75%.
** These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions without
adjustment for sales charge.
*** An unmanaged index of the world's major equity markets in U.S. dollars,
weighted by stock market value.
@ Date shares were first offered to the public.
PORTFOLIO CHANGES FOR THE YEAR ENDED 10/31/96
<TABLE>
<S> <C> <C>
ADDITIONS:
Adidas AG Empire East Land Holdings, Inc. OMV Aktiengesellschaft
Altera Corp. Estee Lauder Co. Orange plc
American Oncology Resources, Forte Software, Inc. Pathe S.A.
Inc. Green Tree Financial Corp. PetsMart, Inc.
Amway Japan, Ltd. Harvey Nichols Petroleum Geo-Services A/S ADR
ANSYS, Inc. HCIA, Inc. Portugal Telecom SA ADR
Asia Satellite Hutchison Whampoa, Ltd. Puma AG
Telecommunications Holdings Industri Matematik International P.T. Telekomunikasi Indonesia
Ltd. Corp. Sony Corp.
Avant! Corp. Interim Services, Inc. SQA, Inc.
Blyth Industries, Inc. KCI Konecranes International Sun Hung Kai Properties, Ltd.
Capita Group plc Corp. Sykes Enterprises, Inc.
Central European Media Korea Moble Telecommunications Tag Heuer International S.A. ADR
Enterprises Ltd. Class A ADR Telefonica Del Peru ADR
Ceridian Corp. Laox Co. Ltd. Tidewater, Inc.
Ciba-Geigy AG LCI International, Inc. Tommy Hilfiger Corp.
CPT Telefonica Del Peru S.A. Megaworld Properties & Holdings, Toolex Alpha NV
Class B Inc. Total Renal Care Holdings, Inc.
CUC International, Inc. MOL Magyar Olaj-es Gazipari Rt. Vans, Inc.
Dassault Systemes S.A. ADR GDS Wolford AG
Data Processing Resources Corp. Multicanal Participacoes S.A. Xylan Corp.
Disco S.A. ADR ADR
ELIMINATIONS:
Applied Materials, Inc. Iochpe Maxion S.A. ADR Sidel SA
Bajaj Auto Ltd. Kwik Fit Holdings plc Tandy Corp.
British Sky Broadcasting plc Landmark Graphics Corp. Technology Resources Industries
Buenos Aires Embotelladora S.A. Mercury Interactive Corp. Tele Danmark ADR
ADR News Corp., Ltd. (The) Preferred Telewest plc
Centros Comerciales Continente ADR Thorn Lighting Group plc
S.A. News Corp., Ltd. ADR (The) Videotron Holdings plc ADR
Crown Cork & Seal Company, Inc. Office Depot, Inc. Vodafone Group plc ADR
DSC Communications Corp. Rogers Cantel Mobile Wabash National Corp.
Elsevier NV Communications, Inc. Class B YPF Sociedad Anonima ADR
Empresa Nacional de Electricidad Scandinavian Mobility
Internatiol
</TABLE>
4
<PAGE>
FORTIS GLOBAL GROWTH PORTFOLIO
Schedule of Investments
October 31, 1996
COMMON STOCKS-82.41%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
----------- ------------ -------------
<C> <S> <C> <C>
ARGENTINA-0.88%
50,000 Disco S.A. ADR (a)(f) -- FOOD................ $ 788,250 $ 1,125,000
------------ -------------
AUSTRIA-2.63%
18,200 OMV Aktiengesellschaft (g) -- OIL-CRUDE
PETROLEUM AND GAS.......................... 1,843,113 1,782,800
11,800 Wolford AG -- APPAREL........................ 1,243,396 1,557,060
------------ -------------
3,086,509 3,339,860
------------ -------------
BELGIUM-1.55%
12,000 Barco N.V. (a) -- TELECOMMUNICATIONS......... 1,530,871 1,973,709
------------ -------------
BERMUDA-0.76%
34,700 Central European Media Enterprises Ltd. Class
A (a) -- BROADCASTING...................... 954,250 971,600
------------ -------------
BRAZIL-0.73%
13,000 Multicanal Participacoes S.A. ADR
(a) -- BROADCASTING........................ 182,000 182,000
10,000 Telebras ADR -- UTILITIES-TELEPHONE.......... 416,250 745,000
------------ -------------
598,250 927,000
------------ -------------
CHILE-0.57%
25,900 Santa Isabel S.A. ADR -- FOOD................ 589,080 728,437
------------ -------------
FINLAND-2.75%
23,900 KCI Konecranes International Corp.
(a)(g) -- MACHINERY........................ 563,329 659,265
60,000 Nokia (AB) K Shares -- TELECOMMUNICATIONS.... 982,660 2,833,458
------------ -------------
1,545,989 3,492,723
------------ -------------
FRANCE-2.20%
4,000 Castorama Dubois
Investisse -- RETAIL-MISCELLANEOUS......... 355,465 685,172
5,000 Dassault Systemes S.A. ADR
(a) -- COMPUTER-SOFTWARE................... 115,000 216,875
4,000 Pathe S.A. (a) -- BROADCASTING............... 935,737 1,079,832
9,000 Sanofi S.A. -- DRUGS......................... 501,320 815,923
------------ -------------
1,907,522 2,797,802
------------ -------------
GERMANY-2.94%
8,000 Adidas AG -- SHOES AND LEATHER............... 385,870 674,067
17,500 Puma AG (a) -- APPAREL....................... 607,835 517,528
23,000 SGL Carbon AG -- STEEL AND IRON.............. 1,134,611 2,550,484
------------ -------------
2,128,316 3,742,079
------------ -------------
HONG KONG-1.35%
4,000 Asia Satellite Telecommunications Holdings
Ltd. (a) -- UTILITIES-TELEPHONE............ 103,328 107,000
400,000 First Pacific Co. Ltd. -- MISCELLANEOUS...... 444,061 550,935
70,000 Hutchison Whampoa, Ltd. -- REAL ESTATE....... 459,904 488,858
50,000 Sun Hung Kai Properties, Ltd. -- REAL
ESTATE..................................... 430,887 569,041
------------ -------------
1,438,180 1,715,834
------------ -------------
HUNGARY-0.68%
85,000 MOL Magyar Olaj-es Gazipari Rt. GDS
(g) -- OIL-REFINING........................ 688,500 867,705
------------ -------------
INDIA-0.22%
12,000 Indian Hotels Co., Ltd. (The) GDR
(a)(e) -- HOTEL AND GAMING................. 199,200 279,960
------------ -------------
INDONESIA-0.61%
26,000 P.T. Telekomunikasi Indonesia
(f) -- UTILITIES-TELEPHONE................. 484,368 780,000
------------ -------------
ISRAEL-1.75%
38,000 ECI Telecom Ltd. (f) -- TELECOMMUNICATIONS... 670,706 760,000
35,000 Teva Pharmaceutical Industries, Ltd. ADR
(f) -- DRUGS............................... 1,186,250 1,465,625
------------ -------------
1,856,956 2,225,625
------------ -------------
ITALY-2.45%
29,400 Fila Holdings S.p.A. ADR (f) -- APPAREL...... 494,131 2,116,800
22,000 Industrie Natuzzi S.p.A. ADR -- FURNITURE.... 402,621 998,250
------------ -------------
896,752 3,115,050
------------ -------------
</TABLE>
5
<PAGE>
FORTIS GLOBAL GROWTH PORTFOLIO
Schedule of Investments
October 31, 1996
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
----------- ------------ -------------
<C> <S> <C> <C>
JAPAN-6.04%
15,000 Amway Japan, Ltd. -- HOUSEHOLD PRODUCTS...... $ 728,058 $ 598,734
10,000 Autobacs Seven Co.
Ltd. -- RETAIL-MISCELLANEOUS............... 988,160 789,520
10,000 Canon, Inc. ADR -- OFFICE EQUIPMENT AND
SUPPLIES................................... 727,099 963,750
160 DDI Corp. -- TELECOMMUNICATIONS.............. 1,030,778 1,202,743
12,000 Kyocera Corp. -- ELECTRONIC-CONTROLS AND
EQUIPMENT.................................. 893,163 792,333
55,000 Laox Co. Ltd. -- RETAIL-ELECTRIC PRODUCTS,
RADIO, TV, AUDIO........................... 1,191,491 923,597
7,000 Matsushita Electric Industrial Co., Ltd.
ADR -- ELECTRONIC-CONTROLS AND EQUIPMENT... 1,170,071 1,131,375
140 Nippon Telegraph & Telephone
Corp. -- TELEPHONE SERVICES................ 1,206,567 978,547
5,000 Sony Corp. -- ELECTRONIC-CONTROLS AND
EQUIPMENT.................................. 327,471 300,246
------------ -------------
8,262,858 7,680,845
------------ -------------
MEXICO-0.53%
15,500 Panamerican Beverages, Inc. Class
A -- BEVERAGE.............................. 546,573 676,187
------------ -------------
NETHERLANDS-5.20%
30,000 Baan Co. NV (a)(f) -- COMPUTER-SOFTWARE...... 240,000 1,110,000
30,000 IHC Caland N.V. -- MACHINERY-OIL AND WELL.... 482,759 1,675,219
30,000 Randstad Holdings NV -- BUSINESS SERVICES AND
SUPPLIES................................... 820,388 2,427,033
11,000 Toolex Alpha NV
(a)(f) -- MACHINERY-SPECIALTY.............. 257,047 103,125
10,000 Wolters Kluwer NV -- PUBLISHING.............. 500,209 1,286,044
------------ -------------
2,300,403 6,601,421
------------ -------------
NORWAY-1.33%
49,300 Petroleum Geo-Services A/S ADR
(a) -- MACHINERY-OIL AND WELL.............. 1,376,139 1,688,525
------------ -------------
PERU-0.32%
150,000 CPT Telefonica Del Peru S.A. Class
B -- UTILITIES-TELEPHONE................... 331,997 326,124
4,000 Telefonica del Peru
ADR -- UTILITIES-TELEPHONE................. 82,000 82,500
------------ -------------
413,997 408,624
------------ -------------
PHILIPPINES-0.90%
736,500 Empire East Land Holdings, Inc.
(a)(g) -- REAL ESTATE...................... 402,340 357,320
2,057,250 Megaworld Properties & Holdings, Inc.
(a) -- REAL ESTATE......................... 547,687 782,819
------------ -------------
950,027 1,140,139
------------ -------------
PORTUGAL-0.29%
14,200 Portugal Telecom SA
ADR -- UTILITIES-TELEPHONE................. 324,726 367,425
------------ -------------
SOUTH KOREA-0.91%
19,000 Korea Electric Power Corp.
(f) -- UTILITIES-ELECTRIC.................. 408,500 342,000
65,000 Korea Mobile Telecommunications-ADR
(a)(f) -- TELEPHONE SERVICES............... 1,048,125 812,500
------------ -------------
1,456,625 1,154,500
------------ -------------
SWEDEN-3.67%
35,000 Astra AB -- A SHARES -- DRUGS................ 693,684 1,610,166
60,000 Ericsson (L.M.) Telephone Co. Class B ADR
(f) -- TELECOMMUNICATION EQUIPMENT......... 1,040,250 1,657,500
40,000 Hoganas Class B -- MISCELLANEOUS............. 1,108,424 1,236,948
2,300 WM Data AB Class B -- BUSINESS SERVICES AND
SUPPLIES................................... 63,829 164,673
------------ -------------
2,906,187 4,669,287
------------ -------------
SWITZERLAND-1.12%
500 Ciba-Geigy AG -- DRUGS....................... 594,645 618,485
100 Roche Holdings AG, Genusschein
NVP -- DRUGS............................... 522,734 759,502
3,000 Tag Heuer International S.A. ADR
(a)(f) -- APPAREL.......................... 58,650 48,000
------------ -------------
1,176,029 1,425,987
------------ -------------
THAILAND-0.25%
30,000 Bangkok Bank Co. Ltd. -- BANKS............... 332,434 319,937
------------ -------------
UNITED KINGDOM-2.99%
68,400 Capita Group plc -- BUSINESS SERVICES AND
SUPPLIES................................... 438,498 462,794
150,000 Dixons Group plc -- RETAIL-ELECTRIC PRODUCTS,
RADIO, TV, AUDIO........................... 476,679 1,339,766
23,000 Harvey Nichols (a)(g) -- RETAIL-CLOTHING..... 94,367 128,652
225,000 Orange plc -- TELECOMMUNICATIONS............. 707,347 679,653
</TABLE>
6
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
----------- ------------ -------------
<C> <S> <C> <C>
120,000 Powerscreen International
plc -- CONSTRUCTION........................ $ 557,262 $ 1,194,919
------------ -------------
2,274,153 3,805,784
------------ -------------
UNITED STATES-36.79%
32,000 3Com Corp. (a)(f) -- COMPUTER-COMMUNICATIONS
EQUIPMENT.................................. 420,000 2,164,000
13,000 Altera Corp. (a)(f) -- ELECTRONIC-CONTROLS
AND EQUIPMENT.............................. 546,969 806,000
54,000 American Oncology Resources, Inc.
(a) -- HEALTH CARE SERVICES................ 772,417 432,000
44,200 ANSYS, Inc. (a) -- COMPUTER-SOFTWARE......... 549,392 541,450
60,000 Apple South, Inc. -- RESTAURANTS AND
FRANCHISING................................ 665,621 705,000
35,000 Applebees International, Inc.
(f) -- RESTAURANTS AND FRANCHISING......... 594,675 853,125
25,000 AutoZone, Inc. (a)(f) -- RETAIL-SPECIALTY.... 599,585 640,625
35,000 Avant! Corp. (a)(f) -- COMPUTER-SOFTWARE..... 827,690 1,058,750
30,000 Bed, Bath & Beyond, Inc.
(a)(f) -- RETAIL-SPECIALTY................. 330,625 757,500
28,800 Blyth Industries, Inc.
(a)(f) -- MISCELLANEOUS.................... 1,328,992 1,119,600
22,000 Catalina Marketing Corp. (a) -- BUSINESS
SERVICES AND SUPPLIES...................... 443,564 1,119,250
19,000 Ceridian Corp. (a)(f) -- BUSINESS SERVICES
AND SUPPLIES............................... 946,960 942,875
24,000 Cheesecake Factory, Inc. (a) -- RESTAURANTS
AND FRANCHISING............................ 619,637 444,000
36,000 Cisco Systems, Inc.
(a)(f) -- COMPUTER-COMMUNICATIONS
EQUIPMENT.................................. 366,375 2,227,500
52,000 Credit Acceptance Corp. (a)(f) -- FINANCE
SERVICES................................... 1,112,800 1,404,000
55,200 CUC International, Inc.
(a)(f) -- RETAIL-SPECIALTY................. 1,210,944 1,352,400
12,000 Data Processing Resources Corp.
(a) -- BUSINESS SERVICES AND SUPPLIES...... 247,773 241,500
10,000 Estee Lauder Co. -- COSMETICS AND SUNDRIES... 260,000 430,000
5,000 Forte Software, Inc.
(a)(f) -- COMPUTER-SOFTWARE................ 105,000 188,750
96,000 Gartner Group, Inc. Class A
(a)(f) -- BUSINESS SERVICES AND SUPPLIES... 300,000 2,952,000
30,000 Green Tree Financial Corp. (f) -- FINANCE
SERVICES................................... 990,956 1,188,750
19,500 HCIA, Inc. (a) -- HEALTH CARE SERVICES....... 743,243 541,125
45,000 Industri Matematik International Corp.
(a) -- COMPUTER-SOFTWARE................... 450,000 438,750
60,000 Input/Output, Inc. (a) -- MACHINERY-OIL AND
WELL....................................... 200,750 1,785,000
22,000 Interim Services, Inc. (a) -- BUSINESS
SERVICES AND SUPPLIES...................... 951,500 880,000
10,900 LCI International, Inc. (a) -- TELEPHONE
SERVICES................................... 329,397 347,437
63,600 Mercury Finance Co. -- FINANCE SERVICES...... 736,602 731,400
33,750 Oracle Corp. (a)(f) -- COMPUTER-SOFTWARE..... 425,625 1,428,047
19,800 Owen Healthcare, Inc. (a) -- HEALTH CARE
SERVICES................................... 237,600 294,525
40,000 Parametric Technology Corp.
(a) -- COMPUTER-SOFTWARE................... 509,865 1,955,000
6,200 PetsMart, Inc. (a) -- RETAIL-MISCELLANEOUS... 166,615 167,400
50,000 Physician Reliance Network, Inc.
(a)(f) -- HEALTH CARE SERVICES............. 555,864 293,750
30,000 R.P. Scherer Corp. (a) -- DRUGS.............. 1,335,667 1,391,250
26,000 Service Corp. International (f) -- BUSINESS
SERVICES AND SUPPLIES...................... 500,500 741,000
13,600 SQA, Inc. (a) -- COMPUTER-SOFTWARE........... 277,275 372,300
30,000 Steris Corp. (a)(f) -- MEDICAL SUPPLIES...... 508,843 1,132,500
2,250 Sykes Enterprises, Inc. (a) -- BUSINESS
SERVICES AND SUPPLIES...................... 27,000 104,625
30,000 Synopsys, Inc. (a) -- COMPUTER-SOFTWARE...... 650,949 1,350,000
20,000 Tellabs, Inc. (a)(f) -- TELECOMMUNICATION
EQUIPMENT.................................. 537,810 1,702,500
20,000 Tidewater, Inc. -- SHIP BUILDING, SHIPPING... 701,560 875,000
20,000 Tommy Hilfiger Corp. (a) -- APPAREL.......... 785,024 1,040,000
20,200 Total Renal Care Holdings, Inc. (a) -- HEALTH
CARE SERVICES.............................. 699,788 787,800
24,000 U.S. Robotics Corp.
(a)(f) -- COMPUTER-COMMUNICATIONS
EQUIPMENT.................................. 515,838 1,509,000
20,000 Vans, Inc. (a) -- SHOES AND LEATHER.......... 363,500 332,500
20,000 Viking Office Products, Inc.
(a) -- RETAIL-SPECIALTY.................... 298,910 582,500
12,500 Western Atlas, Inc. (a) -- OIL AND GAS FIELD
SERVICES................................... 571,163 867,187
69,000 Wisconsin Central Transportation Corp.
(a)(f) -- TRANSPORTATION................... 649,775 2,484,000
15,000 Xilinx, Inc.
(a)(f) -- ELECTRONIC-SEMICONDUCTOR AND
CAPACITOR.................................. 203,661 491,250
15,000 Xylan Corp. (a)(f) -- COMPUTER-COMMUNICATIONS
EQUIPMENT.................................. 595,001 600,000
------------ -------------
27,769,300 46,794,921
------------ -------------
TOTAL COMMON STOCKS.......................... $68,782,444 $ 104,815,966
------------ -------------
</TABLE>
7
<PAGE>
FORTIS GLOBAL GROWTH PORTFOLIO
Schedule of Investments
October 31, 1996
PREFERRED STOCKS-2.59%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
-------- ------------ -------------
<C> <S> <C> <C>
GERMAN-2.59%
24,500 SAP AG Systeme
Preferred -- COMPUTER-SOFTWARE............. $ 704,044 $ 3,299,690
------------ -------------
TOTAL EQUITY INVESTMENTS..................... $69,486,488 $ 108,115,656
------------ -------------
------------ -------------
</TABLE>
SHORT-TERM INVESTMENTS-15.70%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
----------- -------------
<C> <S> <C>
BANKS-2.51%
$3,189,000 First Trust Money Market Variable Rate Time
Deposit, Current rate -- 5.19%............. $ 3,189,000
-------------
DIVERSIFIED FINANCE-4.33%
5,506,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.29%...................... 5,506,000
-------------
U.S. GOVERNMENT AGENCY-8.86%
5,000,000 Federal Home Loan Mortgage Corp., 5.19%,
11-13-1996................................. 4,990,629
6,300,000 Federal Home Loan Mortgage Corp., 5.18%,
11-14-1996................................. 6,287,309
-------------
11,277,938
-------------
TOTAL SHORT-TERM INVESTMENTS................. 19,972,938
-------------
-------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$89,459,426) (B)........................... $ 128,088,594
-------------
-------------
</TABLE>
(a) Presently not paying dividend income.
(b) At October 31, 1996 the cost of securities for federal income tax purposes
was $89,459,426 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation........................... $41,655,127
Unrealized depreciation........................... (3,025,959)
---------------------------------------------------------------
Net unrealized appreciation....................... $38,629,168
---------------------------------------------------------------
</TABLE>
(c) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets.
(e) Securities sold within terms of a private placement memorandum, exempt from
registration under Section 144A of the Securities Act of 1933, as amended,
and may be sold only to dealers in that program or other "accredited
investors". Pursuant to guidelines adopted by the Board of Directors, these
issues are determined to be liquid. The aggregate value of these securities
at October 31, 1996 was $279,960 which represents .22% of total net assets.
(f) Security is fully or partially on loan at October 31, 1996. See Note 1 of
accompanying Notes to Financial Statements.
(g) Common Stock sold within the terms of private placement memorandums, exempt
from registration under Section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or other
"accredited investors". These investments have been identified by portfolio
management as illiquid securities:
<TABLE>
<CAPTION>
Date Acquired Shares/Par Security Cost Basis
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
November 22, 1995 85,000 MOL Magyar Olaj-es Gazipari GDS $ 688,500
March 19, 1996 3,000 KCI Konecranes 44,214
April 22, 1996 23,000 Harvey Nichols 94,367
May 22, 1996 18,200 OMV Aktiengesellschaft 1,843,113
June 21, 1996 331,000 Empire East Land Holdings, Inc. 163,150
June 28, 1996 300,000 Empire East Land Holdings, Inc. 187,006
July 12, 1996 20,900 KCI Konecranes 519,115
July 19, 1996 105,500 Empire East Land Holdings, Inc. 52,184
The value of these securities at October 31, 1996 is $3,795,742 which represents 2.98% of net assets.
</TABLE>
8
<PAGE>
FORTIS GLOBAL GROWTH PORTFOLIO
Statement of Assets and Liabilities
October 31, 1996
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments in securities, as detailed
in the accompanying schedules, at
market (cost $89,459,426) (Note
1).................................. $ 128,088,594
Cash on deposit with custodian........ 107,675
Collateral for securities lending
transactions (Note 1)............... 31,142,891
Receivables:
Interest and dividends.............. 105,936
Subscriptions of capital stock...... 149,197
Deferred registration costs (Note
1).................................. 21,804
--------------
TOTAL ASSETS............................ 159,616,097
--------------
LIABILITIES
Payable upon return of securities
loaned (Note 1)..................... 31,142,891
Payable for investment securities
purchased........................... 1,136,250
Redemptions of capital stock.......... 7,866
Payable for investment advisory and
management fees (Note 2)............ 109,240
Payable for distribution fees (Note
2).................................. 2,543
Accounts payable and accrued
expenses............................ 22,592
--------------
TOTAL LIABILITIES....................... 32,421,382
--------------
NET ASSETS
Net proceeds of capital stock, par
value $.01 per share- authorized
10,000,000,000 shares............... 93,602,576
Unrealized appreciation of investments
in securities and other assets and
liabilities denominated in foreign
currency............................ 38,628,912
Accumulated net realized loss from
sale of investments and foreign
currency............................ (5,036,773)
--------------
TOTAL NET ASSETS........................ $ 127,194,715
--------------
SHARES OUTSTANDING AND NET ASSET VALUE
PER SHARE:
Class A shares (based on net assets of
$107,607,438 and 5,057,401 shares
outstanding).......................... $21.28
--------------
Class B shares (based on net assets of
$5,735,043 and 273,294 shares
outstanding).......................... $20.98
--------------
Class C shares (based on net assets of
$3,087,155 and 147,001 shares
outstanding).......................... $21.00
--------------
Class H shares (based on net assets of
$10,765,079 and 512,844 shares
outstanding).......................... $20.99
--------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
9
<PAGE>
FORTIS GLOBAL GROWTH PORTFOLIO
Statement of Operations
For the Year Ended October 31, 1996
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
<S> <C>
NET INVESTMENT LOSS:
Income
Interest income..................... $ 596,960
Dividend income (Net of foreign
withholding taxes of $97,096)...... 531,689
Fee income (Note 1)................. 28,954
-------------
Total Income.......................... 1,157,603
-------------
Expenses:
Investment advisory and management
fees (Note 2)...................... 979,766
Distribution fees (Class A)(Note
2)................................. 219,968
Distribution fees (Class B)(Note
2)................................. 30,690
Distribution fees (Class C)(Note
2)................................. 15,431
Distribution fees (Class H)(Note
2)................................. 53,771
Legal and auditing fees (Note 2).... 23,105
Custodian fees...................... 66,890
Shareholders' notices and reports... 67,634
Amortization of organization
costs.............................. 16,267
Registration fees (Note 1).......... 49,800
Directors' fees and expenses........ 16,225
Other............................... 8,368
-------------
Total expenses........................ 1,547,915
-------------
NET INVESTMENT LOSS..................... (390,312)
-------------
REALIZED AND UNREALIZED (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY (NOTE
1):
Net realized loss from:
Investments......................... (171,874)
Foreign currency transactions....... (4,576)
-------------
NET REALIZED LOSS ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS........... (176,450)
-------------
Net change in unrealized appreciation
(depreciation) of:
Investments........................... 14,140,080
Translation of assets and liabilities
denominated in foreign currency..... (1,488)
-------------
NET CHANGE IN UNREALIZED APPRECIATION ON
INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS............................ 14,138,592
-------------
NET GAIN ON INVESTMENTS AND FOREIGN
CURRENCY................................ 13,962,142
-------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS......................... $ 13,571,830
-------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
10
<PAGE>
FORTIS GLOBAL GROWTH PORTFOLIO
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1996 1995
-------------- --------------
<S> <C> <C>
OPERATIONS
Net investment loss................... $ (390,312) $ (337,316)
Net realized loss on investments and
foreign currency transactions....... (176,450) (3,200,446)
Net change in unrealized appreciation
of investments and foreign
currency............................ 14,138,592 16,489,177
-------------- --------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS......................... 13,571,830 12,951,415
-------------- --------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from sale of shares
Class A (1,940,549 and 996,463
shares)............................ 39,409,832 15,668,875
Class B (230,772 and 58,426
shares)............................ 4,671,133 948,891
Class C (128,086 and 24,308
shares)............................ 2,606,605 417,998
Class H (426,029 and 122,300
shares)............................ 8,761,920 2,019,896
Less cost of repurchase of shares
Class A (628,371 and 986,837
shares)............................ (12,693,443) (15,221,519)
Class B (12,195 and 3,709 shares)... (247,255) (56,866)
Class C (5,041 and 352 shares)...... (102,980) (6,157)
Class H (31,319 and 4,166 shares)... (651,553) (67,840)
-------------- --------------
NET INCREASE IN NET ASSETS FROM SHARE
TRANSACTIONS............................ 41,754,259 3,703,278
-------------- --------------
TOTAL INCREASE IN NET ASSETS............ 55,326,089 16,654,693
NET ASSETS:
Beginning of year..................... 71,868,626 55,213,933
-------------- --------------
End of year........................... $ 127,194,715 $ 71,868,626
-------------- --------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
FORTIS GLOBAL GROWTH PORTFOLIO
Notes to Financial Statements
- --------------------------------------------------------------------------------
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: The portfolio is a non-
diversified series of Fortis Worldwide Portfolios, Inc., ("Fortis
Worldwide"), an open-end management investment company. The primary
investment objective of the portfolio is long-term capital appreciation. The
portfolio seeks to achieve this objective primarily by investing in a global
portfolio of equity securities allocated among diverse international markets.
The articles of incorporation of Fortis Worldwide permits the Board of
Directors to create additional portfolios in the future. The fund offers
Class A, Class B, Class C and Class H shares. The fund began to issue
multiple class shares effective November 14, 1994. Class A shares are sold
with a front-end sales charge. Class B and H shares are sold without a
front-end sales charge and may be subject to a contingent deferred sales
charge for six years, and such shares automatically convert to Class A after
eight years. Class C shares are sold without a front-end sales charge and may
be subject to a contingent deferred sales charge for one year. All classes of
shares have identical voting, dividend, liquidation and other rights and the
same terms and conditions, except that the level of distribution fees charged
differs between classes. Income, expenses (other than expenses incurred under
each class's distribution agreement) and realized and unrealized gains or
losses on investments are allocated to each class of shares based on its
relative net assets.
The significant accounting policies followed by the fund are summarized as
follows:
SECURITY VALUATION: Investments in securities traded on U.S. or foreign
securities exchanges or on the NASDAQ National Market System are valued at
the last reported sales price; listed securities for which no sale was
reported are valued at the previous day's last sale price on that exchange;
and over-the-counter securities for which no sale was reported are valued at
the last reported bid price. Short-term investments with maturities of less
than 60 days when acquired, or which subsequently are within 60 days of
maturity, are valued at amortized cost.
FOREIGN CURRENCY TRANSLATIONS AND FORWARD FOREIGN CURRENCY CONTRACTS:
Securities and other assets and liabilities denominated in foreign currencies
are translated daily into U.S. dollars at the closing rate of exchange.
Foreign currency amounts related to the purchase or sale of securities,
income and expenses are translated at the exchange rate on the transaction
date. The effect of changes in foreign exchange rates on realized and
unrealized security gains or losses is reflected as a component of such gains
or losses. In the statement of operations, net realized gains or losses from
foreign currency transactions may arise from sales of foreign currency,
closed forward contracts, exchange gains or losses realized between the trade
date and settlement dates on securities transactions, and other translation
gains or losses on dividends, interest income and foreign withholding taxes.
The fund may enter into forward foreign currency exchange contracts for
operational purposes and to attempt to minimize the risk from adverse
exchange rate fluctuations. The net U.S. dollar value of foreign currency
underlying all contractual commitments held by the fund and the resulting
unrealized appreciation or depreciation are determined using foreign currency
exchange rates from an independent pricing service. The fund is subject to
the credit risk that the other party will not complete the obligations of the
contract.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME: Security transactions
are accounted for on the trade date and dividend income is recorded on the
exdate, or upon receipt of ex-dividend notification in the case of certain
foreign securities. Interest income is recorded on the accrual basis.
Realized security gains and losses are determined using the identified cost
method.
For the year ended October 31, 1996, the cost of purchases and proceeds from
sales of securities (other than short-term securities) aggregated $40,897,511
and $15,470,281, respectively.
LENDING OF PORTFOLIO SECURITIES: At October 31, 1996 securities valued at
$29,372,500 were on loan to brokers from the Fund. For collateral, the Fund's
custodian received $31,142,891 in cash which is maintained in a separate
account and invested by the custodian in short term investment vehicles. Fee
income from securities lending amounted to $28,954 for the year ended October
31, 1996. The risks to the Fund in security lending transactions are that the
borrower may not provide additional collateral when required or return the
securities when due and that the proceeds from the sale of investments made
with cash collateral received will be less than amounts required to be
returned to the borrowers.
INCOME TAXES: The portfolio intends to qualify, under the Internal Revenue
Code, as a regulated investment company and if so qualified, will not have to
pay federal income taxes to the extent its taxable net income is distributed.
On a calendar year basis, the portfolio intends to distribute substantially
all of its net investment income and realized gains, if any, to avoid the
payment of federal excise taxes.
For federal income tax purposes, the fund had a capital loss carryover of
$5,036,773 at October 31, 1996, which, if not offset by subsequent capital
gains, will expire as follows:
<TABLE>
<S> <C>
2000......................................... $ 483,191
2001......................................... 125,453
2002......................................... 1,054,200
2003......................................... 3,202,055
2004......................................... 171,874
</TABLE>
It is unlikely the Board of Directors will authorize a distribution of any
net realized gains until the available capital loss carryover has been offset
or expired.
Net Investment Income and net realized gains may differ for financial
statement and tax purposes because of wash sale transactions and other
book-to-tax differences. The character of distributions made during the year
from net investment income or net realized gains may, therefore, differ from
their ultimate characterization for federal income tax purposes. Also, due to
the timing of dividend distributions, the fiscal year in which amounts are
distributed may differ from the year that the income or realized gains
(losses) were recorded by the fund.
On the State of Assets and Liabilities, due to permanent book-to-tax
differences, accumulated net investment loss decreased by $390,312,
accumulated net realized loss decreased by $4,576, resulting in a net
reclassification adjustment to reduce paid-in-capital by $394,888.
INCOME AND CAPITAL GAINS DISTRIBUTIONS: It is the policy of the portfolio to
generally pay annual distributions from net investment income, if any, and
make distributions of any realized capital gains as required by law. These
income and capital gains distributions are distributed on the record date and
are reinvested in additional shares of the portfolio at net asset value or
payable in cash without any charge to the shareholder.
DEFERRED COSTS: Registration costs are deferred and charged to income over
the registration period.
12
<PAGE>
FORTIS GLOBAL GROWTH PORTFOLIO
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
USE OF ESTIMATES: The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date
of the financial statements and the reported amounts of increase and decrease
in net assets from operations during the reporting period. Actual results
could differ from those estimates.
2. PAYMENTS TO RELATED PARTIES: Fortis Advisers, Inc., is the investment adviser
for the portfolio. Investment advisory and management fees are computed at an
annual rate of 1.0% of the first $500 million of average daily net assets,
and .9% on assets in excess of $500 million.
In addition to the investment advisory and management fee, Classes A, B, C
and H pay Fortis Investors, Inc. (the Fund's principal underwriter)
distribution fees equal to .25% (Class A) and 1.00% (Class B, C and H) of
average daily net assets (of the respective classes) on an annual basis, to
be used to compensate those who sell shares of the fund and to pay certain
other expenses of selling fund shares. Fortis Investors, Inc. also received
sales charges (paid by purchasers of the fund's shares) aggregating $717,315
for Class A, $3,419 for Class B, $528 for Class C, and $9,785 for Class H for
the year ended October 31, 1996.
Legal fees and expenses aggregating $2,977 for the year ended October 31,
1996, were paid to a law firm of which the secretary of the portfolio is a
partner.
13
<PAGE>
FORTIS GLOBAL GROWTH PORTFOLIO
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
3. FINANCIAL HIGHLIGHTS Selected per share historical data for each of the
Portfolios was as follows:
<TABLE>
<CAPTION>
Class A
---------------------------------------------------------
For the Year Ended October 31,
---------------------------------------------------------
1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 18.24 $ 14.78 $ 14.42 $ 11.52 $ 10.87
--------- -------- -------- -------- --------
Operations:
Investment loss - net................. (.06) (.09) (.04) (.12) --
Net realized and unrealized gain on
investments......................... 3.10 3.55 .40 3.02 .68
--------- -------- -------- -------- --------
Total from operations................... 3.04 3.46 .36 2.90 .68
--------- -------- -------- -------- --------
Distributions to shareholders:
From investment income - net.......... -- -- -- -- (.02)
From net realized gains............... -- -- -- -- (.01)
--------- -------- -------- -------- --------
Distributions to shareholders........... -- -- -- -- (.03)
--------- -------- -------- -------- --------
Net asset value, end of period.......... $ 21.28 $ 18.24 $ 14.78 $ 14.42 $ 11.52
--------- -------- -------- -------- --------
Total return @.......................... 16.67% 23.41% 2.50% 25.17% 6.24%
Net assets end of period (000s
omitted).............................. $ 107,607 $ 68,302 $ 55,214 $ 28,226 $ 10,727
Ratio of expenses to average daily net
assets................................ 1.51% 1.73% 1.72% 2.19% 2.25%
Ratio of net investment income to
average daily net assets.............. (.33%) (.55%) (.35%) (1.01%) (.04%)
Portfolio turnover rate................. 18% 27% 21% 37% 31%
Average commission rate paid**.......... $ .0272 -- -- -- --
</TABLE>
* Annualized.
** In accordance with rules adopted by the Securities and Exchange
Commission, disclosure of average commission rate paid is required
beginning with fiscal year 1996. The amount represents total brokerage
commission paid on applicable purchases and sales of securities for
the period divided by the total number of related shares purchased and
sold. The comparability of this information may be affected by the
fact that commission rates per share vary significantly among foreign
countries.
@ These are the fund's total returns during the period, including
reinvestment of all dividend and capital gains distributions without
adjustments for sales charge.
+ For the period from November 14, 1994 (commencement of operations) to
October 31, 1995.
<TABLE>
<CAPTION>
Class B Class C Class H
------------------ ------------------ -------------------
1996 1995+ 1996 1995+ 1996 1995+
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 18.12 $ 14.60 $ 18.13 $ 14.60 $ 18.12 $ 14.60
------- ------- ------- ------- -------- -------
Operations:
Investment loss - net................. (.24) (.09) (.23) (.09) (.23) (.09)
Net realized and unrealized gain on
investments......................... 3.10 3.61 3.10 3.62 3.10 3.61
------- ------- ------- ------- -------- -------
Total from operations................... 2.86 3.52 2.87 3.53 2.87 3.52
------- ------- ------- ------- -------- -------
Distributions to shareholders........... -- -- -- -- -- --
------- ------- ------- ------- -------- -------
Net asset value, end of period.......... $ 20.98 $ 18.12 $ 21.00 $ 18.13 $ 20.99 $ 18.12
------- ------- ------- ------- -------- -------
Total return @.......................... 15.78% 24.11% 15.83% 24.18% 15.84% 24.11%
Net assets end of period (000s
omitted).............................. $ 5,735 $ 991 $ 3,087 $ 434 $ 10,765 $ 2,141
Ratio of expenses to average daily net
assets................................ 2.26% 2.48%* 2.26% 2.48%* 2.26% 2.48%*
Ratio of net investment income to
average daily net assets.............. (.99%) (1.42%)* (.99%) (1.55%)* (1.02%) (1.46%)*
Portfolio turnover rate................. 18% 27% 18% 27% 18% 27%
Average commission rate paid**.......... $ .0272 -- $ .0272 -- $ .0272 --
</TABLE>
* Annualized.
** In accordance with rules adopted by the Securities and Exchange
Commission, disclosure of average commission rate paid is required
beginning with fiscal year 1996. The amount represents total brokerage
commission paid on applicable purchases and sales of securities for
the period divided by the total number of related shares purchased and
sold. The comparability of this information may be affected by the
fact that commission rates per share vary significantly among foreign
countries.
@ These are the fund's total returns during the period, including
reinvestment of all dividend and capital gains distributions without
adjustments for sales charge.
+ For the period from November 14, 1994 (commencement of operations) to
October 31, 1995.
14
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders
Fortis Worldwide Portfolios, Inc.:
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments in securities, of Fortis Global Growth Portfolio (a
portfolio within Fortis Worldwide Portfolios, Inc.) as of October 31, 1996 and
the related statement of operations for the year then ended, the statements of
changes in net assets for each of the years in the two-year period ended October
31, 1996 and the financial highlights presented in footnote 3 to the financial
statements. These financial statements and the financial highlights are the
responsibility of fund management. Our responsibility is to express an opinion
on these financial statements and the financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and the financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Investment securities held in custody are confirmed to us by the
custodian. As to securities purchased but not received, we request confirmations
from brokers, and where replies are not received, we carry out other appropriate
auditing procedures. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and the financial highlights referred
to above present fairly, in all material respects, the financial position of
Fortis Global Growth Portfolio at October 31, 1996 and the results of its
operations for the year then ended, the changes in its net assets for each of
the years in the two-year period ended October 31, 1996 and the financial
highlights presented in footnote 3 to the financial statements, in conformity
with generally accepted accounting principles.
KPMG Peat Marwick LLP
Minneapolis, Minnesota
December 6, 1996
15
<PAGE>
DIRECTORS AND OFFICERS
DIRECTORS Richard W. Cutting CPA AND FINANCIAL CONSULTANT
Allen R. Freedman CHAIRMAN AND CHIEF EXECUTIVE OFFICER,
FORTIS, INC. MANAGING DIRECTOR OF
FORTIS INTERNATIONAL, N.V.
Dr. Robert M. Gavin INTERIM PRESIDENT, HAVERFORD COLLEGE.
PRIOR TO JULY 1996, PRESIDENT
MACALESTER COLLEGE
Benjamin S. Jaffray CHAIRMAN, SHEFFIELD GROUP, LTD.
Jean L. King PRESIDENT, COMMUNI-KING
Dean C. Kopperud CHIEF EXECUTIVE OFFICER AND DIRECTOR,
FORTIS ADVISERS, INC. PRESIDENT AND
DIRECTOR, FORTIS INVESTORS, INC.
SENIOR VICE PRESIDENT AND DIRECTOR,
FORTIS BENEFITS INSURANCE COMPANY AND
TIME INSURANCE COMPANY
Edward M. Mahoney PRIOR TO JANUARY, 1995, CHAIRMAN AND
CHIEF EXECUTIVE OFFICER, FORTIS
ADVISERS, INC., FORTIS INVESTORS,
INC.
Robb L. Prince FINANCIAL AND EMPLOYEE BENEFIT
CONSULTANT PRIOR TO JULY, 1995, VICE
PRESIDENT AND TREASURER, JOSTENS,
INC.
Leonard J. Santow PRINCIPAL, GRIGGS & SANTOW, INC.
Noel Shadko MARKETING CONSULTANT PRIOR TO MAY,
1996, SENIOR VICE PRESIDENT OF
MARKETING & STRATEGIC PLANNING,
ROLLERBLADE, INC.
Joseph M. Wikler INVESTMENT CONSULTANT AND PRIVATE
INVESTOR PRIOR TO JANUARY, 1994,
DIRECTOR OF RESEARCH, CHIEF
INVESTMENT OFFICER, PRINCIPAL, AND
DIRECTOR, THE ROTHSCHILD CO.
OFFICERS
Dean C. Kopperud
PRESIDENT AND DIRECTOR
Robert W. Beltz, Jr.
VICE PRESIDENT
James S. Byrd
VICE PRESIDENT
Charles J. Dudley
VICE PRESIDENT
Thomas D. Gualdoni
VICE PRESIDENT
Maroun M. Hayek
VICE PRESIDENT
Howard G. Hudson
VICE PRESIDENT
Robert C. Lindberg
VICE PRESIDENT
Charles L. Mehlhouse
VICE PRESIDENT
Kevin J. Michels
VICE PRESIDENT
Jon H. Nicholson
VICE PRESIDENT
Fred Obser
VICE PRESIDENT
Dennis M. Ott
VICE PRESIDENT
Christopher J. Pagano
VICE PRESIDENT
David A. Peterson
VICE PRESIDENT
Nicholas L. M. de Peyster
VICE PRESIDENT
Stephen M. Poling
VICE PRESIDENT
Stephen M. Rickert
VICE PRESIDENT
Richard P. Roche
VICE PRESIDENT
Rhonda J. Schwartz
VICE PRESIDENT
Keith R. Thomson
VICE PRESIDENT
Christopher J. Woods
VICE PRESIDENT
Gary N. Yalen
VICE PRESIDENT
Michael J. Radmer
SECRETARY
Tamara L. Fagely
TREASURER
INVESTMENT MANAGER, REGISTRAR Fortis Advisers, Inc.
AND TRANSFER AGENT BOX 64284, ST. PAUL, MINNESOTA 55164
PRINCIPAL UNDERWRITER Fortis Investors, Inc.
BOX 64284, ST. PAUL, MINNESOTA 55164
CUSTODIAN First Bank National Association
MINNEAPOLIS, MINNESOTA
GENERAL COUNSEL Dorsey & Whitney LLP
MINNEAPOLIS, MINNESOTA
INDEPENDENT AUDITORS KPMG Peat Marwick LLP
MINNEAPOLIS, MINNESOTA
The use of this material is authorized only when preceded or accompanied by a
prospectus.
16
<PAGE>
FORTIS FINANCIAL GROUP'S OTHER PRODUCTS AND SERVICES
MUTUAL Fortis Bond Funds MONEY FUND
FUNDS/PORTFOLIOS U.S. GOVERNMENT
CONVENIENT ACCESS TO SECURITIES FUND
A BROAD RANGE OF TAX-FREE MINNESOTA
SECURITIES PORTFOLIO
TAX-FREE NATIONAL
PORTFOLIO
TAX-FREE NEW YORK
PORTFOLIO
HIGH YIELD PORTFOLIO
Fortis Stock Funds ASSET ALLOCATION
PORTFOLIO
VALUE FUND
GROWTH & INCOME FUND
CAPITAL FUND
FIDUCIARY FUND
GLOBAL GROWTH PORTFOLIO
GROWTH FUND
CAPITAL APPRECIATION
PORTFOLIO
FIXED AND VARIABLE Fortis Opportunity Fixed FIXED ACCOUNT
ANNUITIES & Variable Annuity MONEY MARKET SUBACCOUNT
TAX-DEFERRED Masters Variable Annuity U.S. GOVERNMENT
INVESTING SECURITIES SUBACCOUNT
DIVERSIFIED INCOME
SUBACCOUNT
GLOBAL BOND SUBACCOUNT
HIGH YIELD SUBACCOUNT
ASSET ALLOCATION
SUBACCOUNT
GLOBAL ASSET ALLOCATION
SUBACCOUNT
VALUE SUBACCOUNT
GROWTH & INCOME
SUBACCOUNT
S&P 500 INDEX SUBACCOUNT
BLUE CHIP STOCK
SUBACCOUNT
GLOBAL GROWTH SUBACCOUNT
GROWTH STOCK SUBACCOUNT
INTERNATIONAL STOCK
SUBACCOUNT
AGGRESSIVE GROWTH
SUBACCOUNT
Fortune Fixed Annuities SINGLE PREMIUM ANNUITY
FLEXIBLE PREMIUM ANNUITY
Income Annuities GUARANTEED FOR LIFE
GUARANTEED FOR A
SPECIFIED PERIOD
LIFE Wall Street Series FIXED ACCOUNT
INSURANCE PROTECTION Variable Universal Life MONEY MARKET SUBACCOUNT
AND TAX-DEFERRED Insurance U.S. GOVERNMENT
INVESTMENT SECURITIES SUBACCOUNT
OPPORTUNITY DIVERSIFIED INCOME
SUBACCOUNT
GLOBAL BOND SUBACCOUNT
HIGH YIELD SUBACCOUNT
ASSET ALLOCATION
SUBACCOUNT
GLOBAL ASSET ALLOCATION
SUBACCOUNT
VALUE SUBACCOUNT
GROWTH & INCOME
SUBACCOUNT
S&P 500 INDEX SUBACCOUNT
BLUE CHIP STOCK
SUBACCOUNT
GLOBAL GROWTH SUBACCOUNT
GROWTH STOCK SUBACCOUNT
INTERNATIONAL STOCK
SUBACCOUNT
AGGRESSIVE GROWTH
SUBACCOUNT
Adaptable Life
Universal Life
FORTIS FINANCIAL GROUP manages and distributes mutual funds, annuities and life
insurance products. The mutual funds, variable life and variable annuity
products are distributed through FORTIS INVESTORS, INC. and managed by FORTIS
ADVISERS, INC. The insurance products are issued by FORTIS BENEFITS INSURANCE
COMPANY, FIRST FORTIS LIFE INSURANCE COMPANY and TIME INSURANCE COMPANY.
FOR MORE COMPLETE INFORMATION, INCLUDING CHARGES AND EXPENSES, SEND FOR A
PROSPECTUS. WRITE TO: FORTIS INVESTORS, INC., P.O. BOX 64284, ST. PAUL, MN
55164. READ IT CAREFULLY BEFORE INVESTING OR SENDING MONEY.
17
<PAGE>
FORTIS FINANCIAL GROUP
Fortis Financial Group (FFG) provides solutions for customers' financial
needs using mutual funds, annuities and life insurance. Besides our own array of
quality products, we create and deliver customized products for other financial
service providers. Like the Fortis name, which comes from the Latin for strong
and steadfast, we concentrate on the customer relationships we build, the
services we provide, the solutions we offer and the performance we seek.
FFG includes Fortis Advisers, Inc., an established money manager, as well as
Fortis Investors, Inc., a broker dealer with nationwide sales and marketing
influence. The guarantees in our insurance products are underwritten by Fortis
Benefits Insurance Company and Time Insurance Company.
[PHOTO]
Fortis Financial Group is part of Fortis, Inc., a financial services company
that provides specialty insurance and investment products to individuals,
businesses, associations and other financial services organizations in the
United States. Fortis, Inc., is part of Fortis, a worldwide group of companies
active in the fields of insurance, banking and investment. Fortis is jointly
owned by Fortis AMEV of The Netherlands and Fortis AG of Belgium.
[LOGO]
FORTIS FINANCIAL GROUP Bulk Rate
B.O. Box 64284 US Postage
St. Paul, MN 55164 Paid
Permit No. 3794
Minneapolis, MN
FORTIS GLOBAL
GROWTH PORTFOLIO
[LOGO] PRINTED ON RECYCLED PAPER WITH
40% PRECONSUMER WASTE AND
10% POST CONSUMER WASTE.
PLEASE RECYCLE.
96156 (Ed. 12/96)
