<PAGE>
[FORTIS LOGO] -REGISTERED TRADEMARK-
[GRAPHIC]
INVEST IN GLOBAL STOCKS
FOR WORLDWIDE OPPORTUNITY . . .
FORTIS
GLOBAL
GROWTH
PORTFOLIO
SEMI-ANNUAL REPORT
APRIL 30, 1997
<PAGE>
FORTIS GLOBAL GROWTH PORTFOLIO SEMI-ANNUAL REPORT
CONTENTS
LETTER TO SHAREHOLDERS 2
SCHEDULE OF INVESTMENTS 5
STATEMENT OF ASSETS AND LIABILITIES 9
STATEMENT OF OPERATIONS 10
STATEMENT OF CHANGES IN NET ASSETS 11
NOTES TO FINANCIAL STATEMENTS 12
BOARD OF DIRECTORS AND OFFICERS 15
PRODUCTS AND SERVICES 16
- - 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 six-months, 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 SIX-MONTH PERIOD ENDED APRIL 30, 1997
<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........................ $ 21.28 $ 20.98 $ 21.00 $ 20.99 791.75
End of period.............................. $ 20.50 $ 20.14 $ 20.15 $ 20.15 845.28
TOTAL RETURN** (3.67%) (4.00%) (4.05%) (4.00%) 7.61%
</TABLE>
** These are the fund's total returns during the period, including
reinvestment of all dividend and capital gains distributions without
adjustments for sales charge.
1
<PAGE>
Photo
Global investing
makes a world of difference.
DEAR SHAREHOLDER,
We are pleased to present the Fortis Global Growth Portfolio semi-annual report
for the period ended April 30, 1997.
PERFORMANCE
Over the past six-month period, the Fortis Global Growth Portfolio (FGGP) had a
total return of -3.67% which compared to a 7.61% return for the Morgan Stanley
Capital International (MSCI) World Index. Since its inception in July 1991, FGGP
has had a total return of 104.48% which compares to a 99.11% total return for
the MSCI World Index. Although the major stock market averages have had strong
performance over the past year, the vast majority of individual stocks have not.
Here's a good illustration of this point. Compare the returns of the broad based
U.S. index of smaller companies, the Russell 2000 Index, to the Standard &
Poor's 500 Index, which is dominated by the very largest companies. Over the
past year, the Russell 2000 return was -1.52%, while the S&P 500 increased
22.5%. This difference in performance is unprecedented in recent stock market
history, and explains the underperformance of funds such as FGGP, which invest
primarily in mid-sized and smaller growth-oriented companies.
The underperformance of the broader market over the past year can be attributed
to investor fears of rising interest rates and a slowing economy. During periods
of interest rate and economic uncertainty, investors historically have focused
their attention on the larger, high quality, blue chip stocks. This has occurred
since July of 1996 when many of the world's equity markets experienced a fairly
sharp correction. Since that time, many secondary stocks in the markets have
dramatically underperformed their larger counterparts. We expect to see this
change during 1997.
ECONOMIC OUTLOOK
One of the primary concerns of the financial markets over the past 12 months has
been the outlook for rising interest rates. Inflation has been more of a concern
than a reality for many segments of the economy. The world's economies are
improving during 1997 as both Europe and Japan attempt to recover from a long
period of sluggish growth. The United States has continued to be the key driver
of the world's economy as evidenced by its strong showing in early 1997. The
other areas of the world, which include the emerging regions such as the Far
East, Latin America, and Central Europe, have continued to show strong relative
growth versus the more mature economic sectors. This growth, however, has not
been uniform and in certain cases in the Far East is beginning to show signs of
maturity. Overall, on a global basis, we continue to look for a moderately
growing economy with low inflationary pressures. The result should be a
reasonably strong environment for global equities.
INVESTMENT OUTLOOK
The Fortis Global Growth Portfolio has the flexibility to invest in any country
in the world. At the end of April 1997, the Portfolio had 35.3% of its
investments in the United States, 34.3% in European countries, 5% in Japan, 2.8%
in other Asian nations and 3.2% in Latin America. Overall, the emerging
economies of the world represented 4.1% of the Fund's total assets. In total,
the Fund was invested in 26 nations, with 96 holdings. FGGP is a well
diversified global portfolio with a significant exposure to companies with
strong relative growth rates in both revenues and earnings.
As we compare the various growth segments around the world, we find that some of
the most undervalued growth companies reside in the United States. Our focus is
on many of the well positioned mid-size growth companies which have been
overlooked by investors during the past year. We have a significant exposure to
many of the better positioned domestic companies in the areas of technology,
consumer products, and business services. Overall, our holdings in the United
States represented 35.3% while 45.7% of assets in the MSCI World Index were U.S.
holdings.
We continue to find numerous growth investment opportunities in markets outside
of the United States. Europe accounts for 34.3% of FGGP's total assets and has
been an
2
<PAGE>
attractive region for niche growth companies over the past several years. The
European economy has struggled in recent years. However, many corporate
restructurings and company spinoffs are now creating attractive investment
situations. We anticipate that Europe will continue to be a fertile investment
area for FGGP. Europe presently represents 30.7% of the MSCI World Index.
The Japanese market has created a challenge for our growth approach to global
investing. It has been difficult to find attractively valued, high growth
companies which meet our investment criteria. The Japanese economy has been slow
growing since 1990. Low levels of inflation have made it difficult for
corporations to demonstrate earnings growth. There are now signs that the
Japanese economy is improving and that some of the better managed companies are
beginning to accelerate their earnings growth rates. We expect to increase our
exposure to Japanese equities which represent 15.5% of the MSCI World Index.
Presently, we have 5% in Japan.
In the emerging regions around the world, we continue to find selective
opportunities to invest in well managed growth companies. Although the economies
of many of the emerging nations have attractive growth, finding well managed,
well positioned, consistent growth companies is another issue. We continue to
search in areas such as Central Europe, Latin America and the Far East for
companies which fit our growth criteria.
PORTFOLIO STRATEGY
Since its inception in 1991, FGGP has consistently invested in companies with
strong growth expectations in numerous markets around the world. Over the longer
run, this approach has resulted in favorable returns to shareholders.
IN CLOSING
We are proud of our long-term record and believe that our long-term
growth-oriented global approach will continue to reward shareholders. We
appreciate your investment with Fortis and look forward to serving your
financial needs. If you have any questions, please call us or talk with your
investment professional.
Sincerely,
[SIGNATURE] [SIGNATURE]
Dean C. Kopperud James S. Byrd
President Vice President
MAY 29, 1997
3
<PAGE>
PORTFOLIO DIVERSIFICATION BY COUNTRY AS OF 4/30/97
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
United States 35.3%
Other 16.3%
Cash Equivalents/Receivables 15.0%
Germany 6.6%
Japan 5.0%
Netherlands 4.4%
United Kingdom 3.8%
Finland 3.7%
Sweden 3.1%
Austria 2.4%
Spain 2.2%
France 2.2%
</TABLE>
TOP 10 HOLDINGS AS OF 4/30/97
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. SAP AG Systeme Preferred (Germany) 3.3%
2. Nokia (AB) (Finland) 2.7%
3. SGL Carbon AG (Germany) 2.4%
4. Gartner Group, Inc. Class A (US) 1.9%
5. Telefonia De Espana (Spain) 1.7%
6. Wisconsin Central Transportation Corp. (US) 1.7%
7. Barco N.V. (Belguim) 1.5%
8. Ericsson (L.M.) Telephone Co. (Sweden) 1.5%
9. OMV Aktiengesellschaft (Austria) 1.5%
10. Petroleum Geo-Services ADR (Norway) 1.4%
</TABLE>
CLASS B, C AND H AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
<CAPTION>
Since
1 Year Inception+
- -------------------------------------------------------------
<S> <C> <C>
Class B sharesDiamond -2.19% +13.97%
Class B sharesDiamond Diamond -5.79% +11.27%
Class C sharesDiamond -2.18% +13.99%
Class C sharesDiamond Diamond -3.18% +13.99%
Class H sharesDiamond -2.14% +13.99%
Class H sharesDiamond Diamond -5.74% +11.29%
</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% if redeemed within two years of purchase, or 3.00% if
redeemed year three or four (with a waiver of 10% of the amount invested) Class
C has a CDSC of 1.00% if redeemed within one year of purchase.
Diamond Without CDSC.
Diamond Diamond With CDSC. Assumes redemption on April 30, 1997.
+ Since November 14, 1994 -- Date shares were first offered to
the public.
GLOBAL GROWTH PORTFOLIO CLASS A
VALUE OF $10,000 INVESTED JULY 8, 1991
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GLOBAL GROWTH PORTFOLIO
<S> <C> <C> <C>
MSCI World Index*** Class A
7/91 10,000 9,477
4/92 10,443 10,518
4/93 12,170 11,943
4/94 13,681 13,548
4/95 15,087 14,090
4/96 17,995 19,762
4/97 19,911 19,477
Global Growth Portfolio Class A
Average Annual Total Return
Since
1 Year 5 Year July 8, 1991@
With Sales Charge* -6.12% +12.02% +12.15%
Without Sales Charge** -1.44% +13.12% +13.09%
</TABLE>
Annual period ended April 30, 1997
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 SIX-MONTH PERIOD ENDED 4/30/97
<TABLE>
<S> <C>
ADDITIONS: ELIMINATIONS:
AccuStaff, Inc. Chargeurs International S.A.
Amer Group, Ltd. Ciba-Geigy AG
Avis Europe plc Korea Electric Power Corp.
Camco International, Inc. MOL Magyar Olaj-es Gazipari Rt. GDS
China Eastern Airlines ADR Owen Healthcare, Inc.
Covance, Inc.
Dr. Solomon's Group plc ADR
DSP Communications, Inc.
ENSCO International, Inc.
Falcon Drilling Co.
Glaxo Wellcome plc ADR
Gucci Group NV
Metro Information Services, Inc.
MOL Magyar Olaj-es Gazipari Rt. GDS
Motorola, Inc.
Novartis AG
Outback Steakhouse, Inc.
Phoenix AG
Repsol S.A.
Stolt Comex Seaway, S.A.
Telefonica De Espana, S.A. ADR
Transocean Offshore, Inc.
</TABLE>
4
<PAGE>
FORTIS GLOBAL GROWTH PORTFOLIO
Schedule of Investments
April 30, 1997 (Unaudited)
COMMON STOCKS-81.66%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
----------- ------------ -------------
<C> <S> <C> <C>
ARGENTINA-1.14%
50,000 Disco S.A. ADR (a) (f) -- RETAIL GROCERY..... $ 788,250 $ 1,550,000
------------ -------------
AUSTRIA-2.36%
18,200 OMV Aktiengesellschaft (g) -- OIL-CRUDE
PETROLEUM AND GAS.......................... 1,843,113 1,986,127
11,800 Wolford AG -- APPAREL........................ 1,243,396 1,216,062
------------ -------------
3,086,509 3,202,189
------------ -------------
BELGIUM-1.51%
12,000 Barco N.V. -- TELECOMMUNICATION EQUIPMENT.... 1,530,871 2,045,912
------------ -------------
BERMUDA-0.72%
34,700 Central European Media Enterprises Ltd.,
Class A (a) -- BROADCASTING................ 954,250 984,612
------------ -------------
BRAZIL-0.93%
11,000 Telebras ADR (f) -- UTILITIES-TELEPHONE...... 679,009 1,262,250
------------ -------------
CHILE-0.46%
25,900 Santa Isabel S.A. ADR (f) -- RETAIL
GROCERY.................................... 589,080 631,312
------------ -------------
CHINA-0.69%
30,000 China Eastern Airlines ADR (a) -- AIRLINES... 540,000 933,750
------------ -------------
FINLAND-3.68%
20,000 Amer Group, Ltd. (a) -- DIVERSIFIED
COMPANIES.................................. 411,823 342,069
23,900 KCI Konecranes International Corp.
(g) -- MACHINERY........................... 563,329 918,591
60,000 Nokia (AB) K Shares -- TELECOMMUNICATION
EQUIPMENT.................................. 982,660 3,730,093
------------ -------------
1,957,812 4,990,753
------------ -------------
FRANCE-2.19%
4,000 Pathe S.A. -- BROADCASTING................... 935,737 934,142
15,000 Sanofi S.A. -- DRUGS......................... 1,032,413 1,400,699
35,000 Stolt Comex Seaway, S.A. (a) -- OIL-OFFSHORE
DRILLING................................... 616,300 643,125
------------ -------------
2,584,450 2,977,966
------------ -------------
GERMANY-3.27%
75,000 Phoenix AG -- AUTOMOBILE AND MOTOR VEHICLE
PARTS...................................... 1,175,877 1,214,871
23,000 SGL Carbon AG -- STEEL AND IRON.............. 1,134,611 3,227,530
------------ -------------
2,310,488 4,442,401
------------ -------------
HONG KONG-1.62%
950,000 First Pacific Co. Ltd. -- DIVERSIFIED
CO.'S...................................... 1,243,340 1,134,381
70,000 Hutchison Whampoa, Ltd. -- DIVERSIFIED
CO.'S...................................... 459,904 519,588
50,000 Sun Hung Kai Properties, Ltd. -- REAL
ESTATE..................................... 430,887 542,179
------------ -------------
2,134,131 2,196,148
------------ -------------
HUNGARY-1.14%
85,000 MOL Magyar Olaj-es Gazipari Rt.
GDS -- OIL-REFINING........................ 688,500 1,552,814
------------ -------------
INDIA-0.21%
12,000 Indian Hotels Co., Ltd. (The) GDR (a)
(e) -- HOTEL AND GAMING.................... 199,200 286,560
------------ -------------
ISRAEL-1.92%
38,000 ECI Telecom Ltd. (f) -- TELECOMMUNICATION
EQUIPMENT.................................. 670,706 831,250
35,000 Teva Pharmaceutical Industries, Ltd. ADR
(f) -- DRUGS............................... 1,186,250 1,776,250
------------ -------------
1,856,956 2,607,500
------------ -------------
ITALY-1.57%
38,000 Fila Holdings S.p.A. ADR (f) -- SHOES AND
LEATHER.................................... 1,111,525 1,643,500
22,000 Industrie Natuzzi S.p.A. ADR -- FURNITURE.... 236,853 489,500
------------ -------------
1,348,378 2,133,000
------------ -------------
JAPAN-5.00%
10,000 Autobacs Seven Co.,
Ltd. -- RETAIL-MISCELLANEOUS............... 988,160 665,826
10,000 Canon, Inc. ADR -- OFFICE EQUIPMENT AND
SUPPLIES................................... 727,099 1,187,500
</TABLE>
5
<PAGE>
FORTIS GLOBAL GROWTH PORTFOLIO
Schedule of Investments
April 30, 1997 (Unaudited)
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
----------- ------------ -------------
<C> <S> <C> <C>
160 DDI Corp. -- TELEPHONE SERVICES.............. $ 1,030,778 $ 1,062,800
55,000 Laox Co., Ltd. -- RETAIL-ELECTRIC PRODUCTS,
RADIO, TV, AUDIO........................... 1,191,491 654,401
7,000 Matsushita Electric Industrial Co., Ltd.
ADR -- ELECTRONIC-CONTROLS AND EQUIPMENT... 1,170,071 1,133,125
140 Nippon Telegraph & Telephone
Corp. -- TELEPHONE SERVICES................ 1,206,567 987,314
15,000 Sony Corp. -- ELECTRONIC-CONTROLS AND
EQUIPMENT.................................. 973,223 1,092,112
------------ -------------
7,287,389 6,783,078
------------ -------------
MEXICO-0.66%
31,000 Panamerican Beverages, Inc. Class
A -- BEVERAGE.............................. 546,573 899,000
------------ -------------
NETHERLANDS-4.42%
30,000 Baan Co. NV (a) (f) -- COMPUTER-SOFTWARE..... 240,000 1,612,500
14,000 Gucci Group NV -- RETAIL-MISCELLANEOUS....... 973,935 971,250
18,000 IHC Caland NV -- MACHINERY-OIL AND WELL...... 369,274 888,863
15,000 Randstad Holdings NV -- BUSINESS SERVICES AND
SUPPLIES................................... 420,120 1,347,462
10,000 Wolters Kluwer NV -- PUBLISHING.............. 500,209 1,185,253
------------ -------------
2,503,538 6,005,328
------------ -------------
NORWAY-1.40%
49,300 Petroleum Geo-Services A/S ADR
(a) -- MACHINERY-OIL AND WELL.............. 1,376,139 1,898,050
------------ -------------
PHILIPPINES-0.25%
1,490,150 Megaworld Properties & Holdings, Inc.
(a) -- REAL ESTATE......................... 396,272 333,405
------------ -------------
PORTUGAL-0.39%
14,200 Portugal Telecom S.A.
ADR -- UTILITIES-TELEPHONE................. 324,726 525,400
------------ -------------
SPAIN-2.16%
15,000 Repsol S.A. -- OIL-CRUDE PETROLEUM AND GAS... 620,911 629,471
30,000 Telefonica del Espana, S.A.
ADR -- UTILITIES-TELEPHONE................. 2,108,199 2,310,000
------------ -------------
2,729,110 2,939,471
------------ -------------
SWEDEN-3.09%
60,000 Ericsson (L.M.) Telephone Co. Class B ADR
(f) -- TELECOMMUNICATION EQUIPMENT......... 1,040,250 2,017,500
40,000 Hoganas Class B -- MISCELLANEOUS............. 1,108,424 1,198,140
88,000 Industri Matematik International Corp.
(a) -- COMPUTER-SOFTWARE................... 832,142 814,000
2,300 WM Data AB Class B -- BUSINESS SERVICES AND
SUPPLIES................................... 63,829 167,102
------------ -------------
3,044,645 4,196,742
------------ -------------
SWITZERLAND-1.76%
1,173 Novartis AG -- DRUGS......................... 1,345,077 1,546,022
100 Roche Holdings AG, Genusschein
NVP -- DRUGS............................... 522,734 844,963
------------ -------------
1,867,811 2,390,985
------------ -------------
UNITED KINGDOM-3.81%
350,000 Avis Europe plc (a) -- BUSINESS SERVICES AND
SUPPLIES................................... 721,989 761,000
205,200 Capita Group plc -- BUSINESS SERVICES AND
SUPPLIES................................... 438,498 794,105
25,000 Dr. Solomon's Group plc ADR (a)
(f) -- COMPUTER-SOFTWARE................... 425,000 578,125
27,000 Glaxo Wellcome plc ADR (f) -- DRUGS.......... 993,452 1,063,125
225,000 Orange plc -- TELEPHONE SERVICES............. 707,347 788,585
120,000 Powerscreen International
plc -- CONSTRUCTION........................ 557,262 1,182,877
------------ -------------
3,843,548 5,167,817
------------ -------------
UNITED STATES-35.31%
32,000 3Com Corp. (a) (f) -- COMPUTER-COMMUNICATIONS
EQUIPMENT.................................. 420,000 928,000
70,000 AccuStaff, Inc. (a) (f) -- BUSINESS SERVICES
AND SUPPLIES............................... 1,593,590 1,277,500
26,000 Altera Corp. (a)
(f) -- ELECTRONIC-SEMICONDUCTOR AND
CAPACITOR.................................. 546,969 1,288,625
20,100 American Oncology Resources, Inc.
(a) -- HEALTH CARE SERVICES................ 221,100 178,388
59,500 ANSYS, Inc. (a) -- COMPUTER-SOFTWARE......... 726,655 409,062
82,500 Apple South, Inc. (f) -- RESTAURANTS AND
FRANCHISING................................ 959,059 1,072,500
35,000 Applebees International, Inc.
(f) -- RESTAURANTS AND FRANCHISING......... 594,675 818,125
25,000 AutoZone, Inc. (a) (f) -- RETAIL-SPECIALTY... 599,585 612,500
35,000 Avant! Corp. (a) (f) -- COMPUTER-SOFTWARE.... 827,690 496,562
</TABLE>
6
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
----------- ------------ -------------
<C> <S> <C> <C>
48,000 Bed, Bath & Beyond, Inc. (a)
(f) -- RETAIL-SPECIALTY.................... $ 829,563 $ 1,314,000
40,000 Blyth Industries, Inc. (a) (f) -- CONSUMER
GOODS...................................... 1,784,845 1,580,000
20,000 Camco International, Inc. (f) -- OIL AND GAS
FIELD SERVICES............................. 855,988 887,500
24,000 Cheesecake Factory, Inc. (a) -- RESTAURANTS
AND FRANCHISING............................ 619,637 438,000
36,000 Cisco Systems, Inc.
(a) -- COMPUTER-COMMUNICATIONS EQUIPMENT... 366,375 1,863,000
55,000 Covance, Inc. (a) -- BUSINESS SERVICES....... 1,086,762 811,250
52,000 Credit Acceptance Corp. (a) (f) -- FINANCE
SERVICES................................... 1,112,800 562,250
59,000 CUC International, Inc. (a)
(f) -- RETAIL-SPECIALTY.................... 1,329,558 1,246,375
62,000 Data Processing Resources Corp.
(a) -- BUSINESS SERVICES AND SUPPLIES...... 1,122,773 1,139,250
70,000 DSP Communications, Inc. (a) -- ELECTRONIC
COMPONENTS................................. 1,336,930 555,625
18,000 ENSCO International, Inc. (a) -- OIL-OFFSHORE
DRILLING................................... 898,456 855,000
10,000 Estee Lauder Co. -- COSMETICS AND SUNDRIES... 260,000 457,500
25,000 Falcon Drilling Co. (a) -- OIL-OFFSHORE
DRILLING................................... 867,175 956,250
96,000 Gartner Group, Inc. Class A (a)
(f) -- BUSINESS SERVICES AND SUPPLIES...... 300,000 2,520,000
30,000 Green Tree Financial Corp. -- FINANCE
SERVICES................................... 990,956 888,750
37,000 HCIA, Inc. (a) -- HEALTH CARE SERVICES....... 1,239,247 763,125
60,000 Input/Output, Inc. (a) -- MACHINERY-OIL AND
WELL....................................... 200,750 840,000
22,000 Interim Services, Inc. (a) -- BUSINESS
SERVICES AND SUPPLIES...................... 951,500 852,500
25,900 LCI International, Inc. (a) -- TELEPHONE
SERVICES................................... 711,860 430,588
12,800 Metro Information Services, Inc.
(a) -- BUSINESS SERVICES AND SUPPLIES...... 237,800 166,400
12,000 Motorola, Inc.
(f) -- ELECTRONIC-SEMICONDUCTOR AND
CAPACITOR.................................. 825,277 687,000
33,750 Oracle Corp. (a) (f) -- COMPUTER-SOFTWARE.... 425,625 1,341,563
21,000 Outback Steakhouse, Inc. (a)
(f) -- RESTAURANTS AND FRANCHISING......... 555,544 412,125
40,000 Parametric Technology Corp. (a)
(f) -- COMPUTER-SOFTWARE................... 509,865 1,810,000
65,000 PetsMart, Inc. (a) -- RETAIL-MISCELLANEOUS... 1,407,287 1,092,813
24,200 R.P. Scherer Corp. (a) -- DRUGS.............. 1,103,667 1,113,200
53,000 Service Corp. International (f) -- PERSONAL
SERVICES................................... 1,315,765 1,815,250
30,000 Steris Corp. (a) -- MEDICAL SUPPLIES......... 508,843 982,500
15,000 Sykes Enterprises, Inc. (a) (f) -- BUSINESS
SERVICES AND SUPPLIES...................... 605,531 427,500
38,000 Synopsys, Inc. (a) -- COMPUTER-SOFTWARE...... 977,092 1,211,250
40,000 Tellabs, Inc. (a) (f) -- TELECOMMUNICATION
EQUIPMENT.................................. 537,810 1,595,000
20,000 Tidewater, Inc. (f) -- SHIP BUILDING,
SHIPPING................................... 701,560 802,500
20,000 Tommy Hilfiger Corp. (a) (f) -- APPAREL...... 785,024 795,000
20,200 Total Renal Care Holdings, Inc. (a) -- HEALTH
CARE SERVICES.............................. 699,788 648,925
16,000 Transocean Offshore, Inc. -- OIL-OFFSHORE
DRILLING................................... 876,734 970,000
24,000 U.S. Robotics Corp.
(a) -- COMPUTER-COMMUNICATIONS EQUIPMENT... 515,838 1,215,000
44,000 Vans, Inc. (a) -- SHOES AND LEATHER.......... 729,500 423,500
20,000 Viking Office Products, Inc.
(a) -- RETAIL-SPECIALTY.................... 298,910 272,500
12,500 Western Atlas, Inc. (a) -- OIL AND GAS FIELD
SERVICES................................... 571,163 775,000
69,000 Wisconsin Central Transportation Corp. (a)
(f) -- TRANSPORTATION...................... 649,775 2,259,750
15,000 Xilinx, Inc. (a) -- ELECTRONIC-SEMICONDUCTOR
AND CAPACITOR.............................. 203,660 735,000
23,200 Xylan Corp. (a)
(f) -- COMPUTER-COMMUNICATIONS EQUIPMENT... 767,884 345,100
------------ -------------
39,164,440 47,939,101
------------ -------------
TOTAL COMMON STOCKS.......................... $84,332,075 $ 110,875,544
------------ -------------
------------ -------------
</TABLE>
PREFERRED STOCKS-3.32%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
-------- ------------ -------------
<C> <S> <C> <C>
GERMANY-3.32%
24,500 SAP AG Systeme
Preferred -- COMPUTER-SOFTWARE............. $ 704,045 $ 4,511,871
------------ -------------
TOTAL LONG-TERM INVESTMENTS.................. $85,036,120 $ 115,387,415
------------ -------------
------------ -------------
</TABLE>
7
<PAGE>
FORTIS GLOBAL GROWTH PORTFOLIO
Schedule of Investments
April 30, 1997 (Unaudited)
SHORT-TERM INVESTMENTS-15.09%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
----------- -------------
<C> <S> <C>
BANKS-2.57%
$3,499,000 First Trust Money Market Variable Rate Time
Deposit, Current rate -- 5.37%............. $ 3,499,000
-------------
DIVERSIFIED FINANCE-1.72%
2,332,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.57%...................... 2,332,000
-------------
U.S. GOVERNMENT AGENCY-5.66%
1,700,000 Federal Home Loan Mortgage, 5.46%,
5-13-1997.................................. 1,696,710
3,000,000 Federal Home Loan Mortgage Corp., 5.46%,
5-19-1997.................................. 2,991,513
3,000,000 Federal Home Loan Mortgage Corp., 5.50%,
5-14-1997.................................. 2,993,700
-------------
7,681,923
-------------
U.S. OTHER DIRECT FEDERAL OBLIGATIONS-5.14%
7,000,000 Federal Home Loan Bank, 5.42%, 5-22-1997..... 6,977,242
-------------
TOTAL SHORT-TERM INVESTMENTS................. 20,490,165
-------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$105,526,285)(B)........................... $ 135,877,580
-------------
-------------
</TABLE>
(a) Presently not paying dividend income.
(b) At April 30, 1997 the cost of securities for federal income tax purposes
was $105,526,285 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation........................... $37,496,525
Unrealized depreciation........................... (7,145,230)
---------------------------------------------------------------
Net unrealized appreciation....................... $30,351,295
---------------------------------------------------------------
</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 "accreditied
investors". Pursuant to guidelines adopted by the Board of Directors, these
issues are determined to be liquid. The aggregate value of these securities
at April 30, 1997 was $286,560 which represents .21% of total net assets.
(f) Security is fully or partially on loan at April 30, 1997. 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>
- ---------------------------------------------------------------------------------------------------------------------------
March 19, 1996 3,000 KCI Konecranes $ 44,214
May 22, 1996 18,200 OMV Aktiengesellschaft 1,843,113
July 12, 1996 20,900 KCI Konecranes 519,115
The value of these securities at April 30, 1997 is $2,904,718 which represents 2.14% of net assets.
</TABLE>
8
<PAGE>
FORTIS GLOBAL GROWTH PORTFOLIO
Statement of Assets and Liabilities
April 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments in securities, as detailed
in the accompanying schedules, at
market (cost $105,526,285) (Note
1).................................. $ 135,877,580
Cash on deposit with custodian........ 43,501
Collateral for securities lending
transactions (Note 1)............... 37,806,725
Receivables:
Investment securities sold.......... 444,865
Interest and dividends.............. 182,972
Subscriptions of capital stock...... 19,020
Deferred registration costs (Note
1).................................. 49,863
Prepaid expenses...................... 19,823
--------------
TOTAL ASSETS............................ 174,444,349
--------------
LIABILITIES
Unrealized depreciation on forward
foreign currency contract-net (Notes
1 and 3)............................ 3,762
Payable upon return of securities
loaned (Note 1)..................... 37,806,725
Payable for investment securities
purchased........................... 687,682
Payable for investment advisory and
management fees (Note 2)............ 110,432
Payable for distribution fees (Note
2).................................. 2,884
Accounts payable and accrued
expenses............................ 55,010
--------------
TOTAL LIABILITIES....................... 38,666,495
--------------
NET ASSETS
Net proceeds of capital stock, par
value $.01 per share- authorized
10,000,000,000 shares............... 107,766,157
Unrealized appreciation of investments
in securities and other assets and
liabilities denominated in foreign
currency............................ 30,347,580
Undistributed net investment income
loss................................ (329,279)
Accumulated net realized loss from
sale of investments and foreign
currency............................ (2,006,604)
--------------
TOTAL NET ASSETS........................ $ 135,777,854
--------------
--------------
SHARES OUTSTANDING AND NET ASSET VALUE
PER SHARE:
Class A shares (based on net assets of
$109,515,698 and 5,343,252 shares
outstanding).......................... $20.50
--------------
Class B shares (based on net assets of
$8,736,967 and 433,810 shares
outstanding).......................... $20.14
--------------
Class C shares (based on net assets of
$3,624,583 and 179,836 shares
outstanding).......................... $20.15
--------------
Class H shares (based on net assets of
$13,900,606 and 690,015 shares
outstanding).......................... $20.15
--------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
9
<PAGE>
FORTIS GLOBAL GROWTH PORTFOLIO
Statement of Operations
For the Six-Month Period Ended April 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
<S> <C>
NET INVESTMENT LOSS:
Income
Interest income..................... $ 456,557
Dividend income (Net of foreign
witholding taxes of $24,074)....... 257,533
Fee income (Note 1)................. 24,560
-------------
Total Income.......................... 738,650
-------------
Expenses:
Investment advisory and management
fees............................... 680,577
Distribution fees (Class A) (Note
2)................................. 140,581
Distribution fees (Class B) (Note
2)................................. 37,714
Distribution fees (Class C) (Note
2)................................. 16,862
Distribution fees (Class H) (Note
2)................................. 63,676
Legal and auditing fees (Note 2).... 14,381
Custodian fees...................... 37,192
Shareholders' notices and reports... 30,842
Registration fees (Note 1).......... 29,268
Directors' fees and expenses........ 8,075
Other............................... 4,953
-------------
Total expenses........................ 1,064,121
-------------
NET INVESTMENT LOSS..................... (325,471)
-------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY (NOTE
1):
Net realized gain (loss) from:
Investments......................... 3,030,169
Foreign currency transactions....... (3,808)
-------------
NET REALIZED LOSS ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS........... 3,026,361
-------------
Net change in unrealized depreciation
of:
Investments........................... (8,277,872)
Translation of assets and liabilities
denominated in foreign currency..... (3,460)
-------------
NET CHANGE IN UNREALIZED DEPRECIATION ON
INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS............................ (8,281,332)
-------------
NET LOSS ON INVESTMENTS AND FOREIGN
CURRENCY................................ (5,254,971)
-------------
NET DECREASE IN NET ASSETS RESULTING
FROM OPERATIONS......................... $ (5,580,442)
-------------
-------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
10
<PAGE>
FORTIS GLOBAL GROWTH PORTFOLIO
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
FOR THE
SIX-MONTH FOR THE
PERIOD ENDED YEAR ENDED
APRIL 30, 1997 OCTOBER 31,
(UNAUDITED) 1996
-------------- --------------
<S> <C> <C>
OPERATIONS
Net investment loss................... $ (325,471) $ (390,312)
Net realized gain (loss) on
investments and foreign currency
transactions........................ 3,026,361 (176,450)
Net change in unrealized appreciation
(depreciation) of investments and
foreign currency.................... (8,281,332) 14,138,592
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............... (5,580,442) 13,571,830
-------------- --------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from sale of shares
Class A (997,916 and 1,940,549
shares)............................ 21,501,926 39,409,832
Class B (182,209 and 230,772
shares)............................ 3,868,417 4,671,133
Class C (49,478 and 128,086
shares)............................ 1,046,494 2,606,605
Class H (253,700 and 426,029
shares)............................ 5,385,929 8,761,920
Less cost of repurchase of shares
Class A (712,065 and 628,371
shares)............................ (15,212,453) (12,693,443)
Class B (21,693 and 12,195
shares)............................ (453,840) (247,255)
Class C (16,643 and 5,041 shares)... (358,195) (102,980)
Class H (76,529 and 31,319
shares)............................ (1,614,697) (651,553)
-------------- --------------
NET INCREASE IN NET ASSETS FROM SHARE
TRANSACTIONS............................ 14,163,581 41,754,259
-------------- --------------
TOTAL INCREASE IN NET ASSETS............ 8,583,139 55,326,089
NET ASSETS:
Beginning of period................... 127,194,715 71,868,626
-------------- --------------
End of period (includes undistributed
net investment loss of $329,279 and
$0, respectively)................... $ 135,777,854 $ 127,194,715
-------------- --------------
-------------- --------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
FORTIS GLOBAL GROWTH PORTFOLIO
Notes to Financial Statements
(Unaudited)
- --------------------------------------------------------------------------------
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,
current income is a secondary objective. The portfolio seeks to achieve this
objective primarily by investing in a global portfolio of equity securities,
allocated among the markets of the U.S. and other, possibly diverse countries
and regions of the world. 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 exchange or on the NASDAQ National Market System are valued at the
last reported sales price. Securities for which over-the-counter market
quotations are readily available are valued on the basis of the last current
bid price. An outside pricing service may be utilized to provide such
valuations. The pricing service may employ electronic data processing
techniques and/or a matrix system to determine valuations. When market
quotations are not readily available, or when restricted or illiquid
securities or other assets are being valued, such securities or other assets
are valued at fair value as determined in good faith by management under
supervision of the Board of Directors. 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 six-month period ended April 30, 1997, the cost of purchases and
proceeds from sales of securities (other than short-term securities)
aggregated $30,528,539 and $18,009,076, respectively.
LENDING OF PORTFOLIO SECURITIES: At April 30, 1997 securities valued at
$36,906,660 were on loan to brokers from the Fund. For collateral, the Fund's
custodian received $37,806,725 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 $24,560 for the six-month period
ended April 30, 1997. 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 Statement of Assets and Liabilities, due to permanent book-to-tax
differences, accumulated net investment loss increased by $3,808, accumulated
net realized loss decreased by $3,808.
12
<PAGE>
FORTIS GLOBAL GROWTH PORTFOLIO
Notes to Financial Statements (continued)
(Unaudited)
- --------------------------------------------------------------------------------
INCOME AND CAPITAL GAINS DISTRIBUTIONS: It is the policy of the portfolio to
generally pay annual distributions from net investment, 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.
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 $404,126
for Class A, $7,320 for Class B, $730 for Class C, and $23,896 for Class H
for the six-month period ended April 30, 1997.
Legal fees and expenses aggregating $4,463 for the six-month period ended
April 30, 1997, were paid to a law firm of which the secretary of the
portfolio is a partner.
3. FORWARD FOREIGN CURRENCY CONTRACTS: At April 30, 1997, the Fund entered into
forward foreign currency exchange contracts that obligated the portfolio to
receive currencies at a specified future date. The unrealized depreciation of
$3,762 on these contracts is included in the accompanying financial
statements. The terms of the open contracts are as follows:
<TABLE>
<CAPTION>
GLOBAL GROWTH PORTFOLIO
- --------------------------------------------------------------------------------------------
U.S. Dollar U.S. Dollar
Currency To Value As Of Currency To Value As Of Appreciation/
Settle Date Be Delivered Apr 30, 1997 Be Received Apr 30, 1997 (Depreciation)
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------
May 6, 1997 620,910 $ 620,910 90,450,000 $ 617,148 $ (3,762)
U.S. Dollar Spanish
Peseta
------------- ------------- -------
$ 620,910 $ 617,148 $ (3,762)
------------- ------------- -------
</TABLE>
13
<PAGE>
FORTIS GLOBAL GROWTH PORTFOLIO
Notes to Financial Statements (continued)
(Unaudited)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. 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,
--------------------------------------------------------------------
1997** 1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------
Net asset value, beginning of
period............................ $ 21.28 $ 18.24 $ 14.78 $ 14.42 $ 11.52 $ 10.87
-------- -------- -------- -------- -------- --------
Operations:
Investment income - net........... (.04) (.06) (.09) (.04) (.12) --
Net realized and unrealized gain
(loss) on investments........... (.74) 3.10 3.55 .40 3.02 .68
-------- -------- -------- -------- -------- --------
Total from operations............... (.78) 3.04 3.46 .36 2.90 .68
-------- -------- -------- -------- -------- --------
Distributions to shareholders:
From investment income - net...... -- -- -- -- -- (.02)
From net realized gains........... -- -- -- -- -- (.01)
-------- -------- -------- -------- -------- --------
Total distributions to
shareholders....................... -- -- -- -- -- (.03)
-------- -------- -------- -------- -------- --------
Net asset value, end of period...... $ 20.50 $ 21.28 $ 18.24 $ 14.78 $ 14.42 $ 11.52
-------- -------- -------- -------- -------- --------
Total return @...................... (3.67%) 16.67% 23.41% 2.50% 25.17% 6.24%
Net assets end of period (000s
omitted).......................... $109,516 $107,607 $ 68,302 $ 55,214 $ 28,226 $ 10,727
Ratio of expenses to average daily
net assets........................ 1.43% 1.51% 1.73% 1.72% 2.19% 2.25%
Ratio of net investment income to
average daily net assets.......... (.36%) (.33%) (.55%) (.35%) (1.01%) (.04%)
Portfolio turnover rate............. 15% 18% 27% 21% 37% 31%
Average Commission Rate Paid........ $ 0.0234 $ 0.0272 -- -- -- --
</TABLE>
<TABLE>
<CAPTION>
Class B Class C Class H
---------------------------- ---------------------------- ---------------------------
1997** 1996 1995+ 1997** 1996 1995+ 1997** 1996 1995+
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of
period............................ $ 20.98 $ 18.12 $ 14.60 $ 21.00 $ 18.13 $14.60 $ 20.99 $ 18.12 $14.60
------- ------- ------- ------- ------- ------ ------- ------- ------
Operations:
Investment income - net........... (.10) (.24) (.09) (.11) (.23) (.09) (.10) (.23) (.09)
Net realized and unrealized gain
(loss) on investments........... (.74) 3.10 3.61 (.74) 3.10 3.62 (.74) 3.10 3.61
------- ------- ------- ------- ------- ------ ------- ------- ------
Total from operations............... (.84) 2.86 3.52 (.85) 2.87 3.53 (.84) 2.87 3.52
------- ------- ------- ------- ------- ------ ------- ------- ------
Distributions to shareholders....... -- -- -- -- -- -- -- -- --
------- ------- ------- ------- ------- ------ ------- ------- ------
Net asset value, end of period...... $ 20.14 $ 20.98 $ 18.12 $ 20.15 $ 21.00 $18.13 $ 20.15 $ 20.99 $18.12
------- ------- ------- ------- ------- ------ ------- ------- ------
Total return @...................... (4.00%) 15.78% 24.11% (4.05%) 15.83% 24.18% (4.00%) 15.84% 24.11%
Net assets end of period (000s
omitted).......................... $ 8,737 $ 5,735 $ 991 $ 3,625 $ 3,087 $ 434 $13,901 $10,765 $2,141
Ratio of expenses to average daily
net assets........................ 2.18%* 2.26% 2.48%* 2.18%* 2.26% 2.48%* 2.18%* 2.26% 2.48%*
Ratio of net investment income to
average daily net assets.......... (1.09%)* (.99%) (1.42%)* (1.09%)* (.99%) (1.55%)* (1.09%)* (1.02%) (1.46%)*
Portfolio turnover rate............. 15% 18% 27% 15% 18% 27% 15% 18% 27%
Average Commission Rate Paid{::}.... $0.0234 $0.0272 -- $0.0234 $0.0272 -- $0.0234 $0.0272 --
</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.
** For the six-month period ended April 30, 1997.
@ 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>
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
Tamara L. Fagely
VICE PRESIDENT AND TREASURER
Howard G. Hudson
VICE PRESIDENT
David A. Peterson
VICE PRESIDENT
Scott R. Plummer
VICE PRESIDENT
Rhonda J. Schwartz
VICE PRESIDENT
Gary N. Yalen
VICE PRESIDENT
Michael J. Radmer
SECRETARY
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.
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FORTIS FINANCIAL GROUP'S OTHER PRODUCTS AND SERVICES
MUTUAL Fortis Bond Funds MONEY FUND
FUNDS/PORTFOLIOS U.S. GOVERNMENT SECURITIES
CONVENIENT ACCESS TO FUND
A BROAD RANGE OF TAX-FREE MINNESOTA PORTFOLIO
SECURITIES TAX-FREE NATIONAL 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 SECURITIES
INVESTING 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 SECURITIES
INVESTMENT 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.
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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 [GRAPHIC]
with nationwide sales and marketing influence. The guarantees
in our insurance products are underwritten by Fortis Benefits
Insurance Company and Time Insurance Company.
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 investments. Fortis is
jointly owned by Fortis AMEV of The Netherlands and Fortis AG of Belgium.
[GRAPHIC] FOR MORE INFORMATION, CALL YOUR INVESTMENT REPRESENTATIVE OR FORTIS
AT (800) 800-2638.
[FORTIS LOGO]-REGISTERED TRADEMARK- ---------------
Bulk Rate
FORTIS FINANCIAL GROUP U.S. Postage
P.O. BOX 64284 PAID
ST. PAUL, MN 55164 Permit No. 3794
Minneapolis, MN
---------------
FORTIS GLOBAL GROWTH PORTFOLIO
[RECYCLE LOGO] Printed on recycled paper with
40% preconsumer waste and 10%
post consumer waste. Please recycle.
[FORTIS LOGO] -REGISTERED TRADEMARK- and Fortis -REGISTERED TRADEMARK- are
registered servicemarks of Fortis AMEV and Fortis AG.
98754 (3/97)
