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FORTIS
Solid partners, flexible solutions-SM-
Global reach, world-class investment potentional
Fortis international stock
funds annual report
October 31, 1999
FORTIS FINANCIAL GROUP
[GRAPHIC]
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FORTIS WORLDWIDE PORTFOLIOS, INC. ANNUAL REPORT
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CONTENTS
LETTER TO SHAREHOLDERS 1
SCHEDULES OF INVESTMENTS
GLOBAL GROWTH PORTFOLIO 5
INTERNATIONAL EQUITY
PORTFOLIO 8
STATEMENTS OF ASSETS AND
LIABILITIES 12
STATEMENTS OF OPERATIONS 13
STATEMENTS OF CHANGES IN NET
ASSETS
GLOBAL GROWTH PORTFOLIO 14
INTERNATIONAL EQUITY
PORTFOLIO 15
NOTES TO FINANCIAL STATEMENTS 16
INDEPENDENT AUDITORS' REPORT 22
BOARD OF DIRECTORS AND OFFICERS 23
OTHER PRODUCTS AND SERVICES 24
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TO ORDER PROSPECTUSES OR SALES LITERATURE FOR ANY FORTIS PRODUCT, CALL
(800) 800-2000, EXT. 4579.
HOW TO USE THIS REPORT
For a quick overview of each fund's performance during the past twelve 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 following 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 funds' 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, 1999
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C CLASS H
-------- -------- -------- --------
<S> <C> <C> <C> <C>
GLOBAL GROWTH PORTFOLIO
NET ASSET VALUE PER SHARE:
Beginning of year......................... $23.18 $22.54 $22.55 $22.54
End of year............................... $31.23 $30.13 $30.19 $30.14
TOTAL RETURN* 34.73% 33.67% 33.88% 33.72%
INTERNATIONAL EQUITY PORTFOLIO
NET ASSET VALUE PER SHARE:
Beginning of year......................... $10.36 $10.33 $10.32 $10.32
End of year............................... $17.14 $17.05 $17.05 $17.03
TOTAL RETURN* 66.90% 65.56% 65.72% 65.53%
DISTRIBUTIONS PER SHARE:
From net investment income................ $0.097 $0.034 $0.034 $0.034
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<C> <S>
* 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>
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FORTIS WORLDWIDE PORTFOLIOS
DEAR SHAREHOLDER,
Thank you for choosing the Fortis Global Growth Portfolio and Fortis
International Equity Portfolio to help achieve your financial goals. The Fortis
Global Growth Portfolio seeks growth opportunities anywhere in the world,
including the United States. The Fortis International Equity Portfolio primarily
invests in companies domiciled outside of the United States.
During the twelve month period ended October 31, 1999, the Fortis Global Growth
Portfolio had a total return of 34.7% for Class A shares before sales charge,
which compared to a total return of 25.3% for the Morgan Stanley Capital
International World Index (MSCI). Over the same timeframe, the Fortis
International Equity Portfolio had a total return of 66.9% for Class A shares
before sales charge compared to a total return of 23.3% for the MSCI EAFE Index
(Europe, Australia, Far East). The improved performance is related to a number
of factors, including the rebound of the Japanese stock market and a broadening
of participation in the U.S. market for growth oriented companies. An improved
global economic outlook over the past year has helped investors gain confidence
in foreign markets. We expect this trend to continue into the year 2000 as the
world economy is expected to grow at an above average rate.
The Fortis Global Growth Portfolio has traditionally focused on growth companies
located anywhere in the world. Our goal has been to expose investors to the
world's best positioned and best managed growth companies. Currently the
portfolio is well diversified with 91 individual holdings in 18 nations. Foreign
holdings represented 56.2% of total net assets; holdings in the United States
represented 38.0%. The outperformance of the portfolio last year versus the MSCI
Index was due in part to its overweight position in Japan and its relatively
heavy exposure to high growth segments of the world's economy.
The Fortis International Equity Portfolio has significantly outperformed the
EAFE Index, which is the traditional representation of non-North American equity
markets. The portfolio's outperformance is due to a substantial overweighting in
the Japanese stock market and a significant exposure to companies in growth
niches in Japan, Europe, and the United Kingdom. At fiscal year end, the Fortis
International Equity Portfolio's asset mix was: Japan 27.2%, Europe 32.4%,
United Kingdom 7.5%, and Emerging Markets 5.5%. The portfolio's aim is to
provide investors with an international portfolio that is highly diversified in
all major economic and investment segments. These include "Blue Chip"
investments, growth companies, restructuring situations, and value oriented
investments.
GLOBAL ECONOMY
The outlook for the world's economy has improved quite dramatically relative to
a year ago. We are presently in a synchronized global economic recovery.
Countries which have been in recessions over the past several years such as
Japan, Germany, France, and Korea are now demonstrating positive economic
growth. This represents the first time since 1994 when all of the world's major
economies were demonstrating growth. The global recovery has encouraged
investors to broaden their investment portfolios into areas which have been
neglected in recent years. Areas such as commodities, energy, emerging markets,
mid-size and smaller growth companies have participated in the global equity
rally. A healthy global economy is being led by the United States. The recovery
of Asia and Japan, and the pick-up in growth of most European nations is leading
to the improved global economic outlook. This improvement will likely continue
for some time as global inflationary pressures are still limited. The recent
increases in interest rates in Europe, the United Kingdom, the United States,
and Australia should temper any inflationary build-up in the world's economy.
The biggest risk facing the financial markets would be too strong of a
synchronized global recovery in the year 2000. This could force the world's
central banks to raise interest rates further in an attempt to slow down
economic activity.
One year ago, the central banks around the world were reducing interest rates in
an attempt to stimulate the world's economy. These numerous interest rate cuts
have worked, as evidenced by the strong recoveries in Southeast Asia and Japan.
The improved economic outlook in Europe and Asia could lead to a greater focus
on these major markets. Globally, there is still excess capacity in certain
industries which should help keep inflationary pressures to a minimum. However,
the monetary authorities are keeping a close watch on inflation as there are
some signs of tightening labor markets in the United States, and certain other
nations. The world's currency markets continue, as always, to be volatile. The
recent strength of the Japanese yen relative to the U. S. Dollar is a reflection
of an improving Japanese economy and the strong liquidity flows into Japan.
Overall, the world economy should grow at a healthy rate in the year 2000 with
inflation an issue, but not a serious threat.
GLOBAL EQUITY MARKETS
The outlook for the world's equity markets has improved dramatically since one
year ago. The primary reason for the improved outlook is the re-acceleration of
economic activity in Europe, Japan, and Southeast Asia. Over the past several
years, most of the world's overseas economies have dramatically lagged the
growth of the United States. This is now beginning to reverse. Economic strength
in the non-U.S. economies should result in increased investment in these
overseas stock markets. The strengthening currencies in Southeast Asia and Japan
have further encouraged foreign investors into these stock markets. Other major
factors influencing future investments will be a continuation of the trend
towards corporate restructurings in Europe and Japan. A number of Japanese
companies have announced major corporate restructurings over the past several
months. This is a major change from the past. Corporate Japan is beginning to
embrace a more Western model of capitalism. This will refocus Japanese
management on return on investment and shareholder value. Should this
restructuring trend continue to gain momentum, foreign investors will likely
continue to focus their attention in Japan. Another important factor which has
dominated the global equity markets in recent months has been a significant
pick-up in merger and acquisition activity. A number of "mega mergers" have
taken place in various industries including energy, health care,
telecommunications, chemicals, and financial services. This trend towards larger
mergers is an attempt to reduce operating costs and develop a global presence.
We expect the merger trend to continue as long as the financial markets remain
strong.
Global investors, in recent months, have increased their appetite for
investments in medium sized and smaller companies in most major equity markets.
This broadening of participation is a positive factor, however not all stock
market segments have participated equally. Technology related companies have
been the primary beneficiaries thus far. An improved economic outlook,
particularly in Southeast Asia, has been an important variable. Larger blue chip
type companies will also prosper in this environment if they are able to
demonstrate steady growth. The relatively high valuation levels for both blue
chip investments and companies with well above average growth prospects may
persist if inflation is maintained at acceptable levels.
The Y2K issue has been well documented. We are confident that no lasting serious
disruptions will take place. We do anticipate some problems in certain areas of
the world's economies. These problems will most likely take place in specific
companies which have not properly prepared for the
1
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Y2K changeover. It is impossible to predict where these problems will occur;
however, they will most likely be temporary in nature. These Y2K issues are
serious but are not unresolvable. A diversified portfolio of well-managed
companies is the best protection against the uncertainty created by the Y2K
issue.
EUROPE
Over the past several years, many international equity portfolios were
substantially overweight in the European stock markets. This was due primarily
to a lack of viable alternatives as Japan and the emerging regions were
experiencing fairly severe recessions. The outlook for the European economies
has improved somewhat over the past several months. Improved economies in the
United States, Japan, and Southeast Asia are helping European exports. Corporate
restructurings and significant merger activity have also focused investors on
certain segments of the European economy. Our focus in Europe has been on
industries with above average growth prospects such as telecommunications,
cellular phone manufacturing and health care.
JAPAN
The Japanese equity market has performed strongly in the past year due to the
perception that the Japanese economy is in a bottoming process. Numerous
Japanese companies have announced major corporate restructuring plans which are
intended to reduce costs and improve returns on investment. This has attracted
foreign investors into the Japanese stock market. The significant changes
occurring in Japan will have major repercussions. The key, however, to Japan's
ability to turn its economy around will be a restructuring of its banking
system. The government of Japan has taken major steps to improve the economy.
These have included significant fiscal stimulation, financial restructuring of
the banking industry, substantial individual and corporate tax cuts, tax credits
for housing, and an extremely low interest rate environment. These stimulative
policies should help stabilize the economy over the next several years. Overall,
we continue to feel that Japan has tremendous potential as an investment area as
long as the corporate restructurings continue to move forward. Our focus in
Japan has been on companies with restructuring efforts and those involved in the
explosive growth areas of the "new economy" such as cellular phones,
telecommunications, and semiconductor capital equipment.
UNITED STATES
Over the past several years, the equity market in the United States has
outperformed its major counterparts. Weak foreign economies and a strong U.S.
dollar attracted investors worldwide to large blue chip type investments in the
United States. The global recession outside of the United States resulted in low
levels of inflation and interest rates. In a sense, the U.S. was the prime
beneficiary of the severe problems experienced in the rest of the world.
Improving economies overseas may result in a lower concentration by global
investors on "mega cap investments" in the United States. The improved global
economic situation is resulting in a broadening of participation. Many medium
and small oriented companies are beginning to outperform. This favorable trend
should persist as the confidence in the improvement of the world economy grows.
Technology related investments have dominated the investment scene in recent
months. Many corporate entities are attempting to become more efficient and
reduce their costs in order to remain competitive. This has resulted in an
unprecedented investment in technology related areas such as telecommunications,
networking, electronic commerce, and other internet related areas. This
technological explosion will likely continue to be the focal point in the United
States. Technology is being exported to overseas economies and will become a key
economic driver in the years ahead. U.S. based companies will be major
beneficiaries of these powerful investment spending trends. Our focus with the
Fortis Global Growth Portfolio has been on large and mid-sized companies which
participate in these various growth technology segments.
EMERGING MARKETS
The emerging regions of the world include Southeast Asia, Central Europe, and
Latin America. Our exposure to these regions will remain limited due to the
volatile characteristics and economic uncertainties associated with emerging
market investing. Longer term, these areas present opportunities. Our focus will
be on blue chip type companies domiciled in these regions. The growth prospects
longer term are favorable as long as the proper economic and social reforms are
implemented.
LONG TERM OUTLOOK
The longer term outlook for investing in global equities remains favorable.
Global economic growth is accelerating, global inflation remains at acceptable
levels, and significant corporate restructurings are taking place. The world has
embraced capitalism and nations in Europe and Japan are becoming more
shareholder aware each year. These are long term trends which should reward
shareholders in overseas markets over time.
THANK YOU FOR YOUR INVESTMENT
We appreciate your investment in the Fortis Global Growth and Fortis
International Equity Portfolios. If you have any questions, please call us or
your investment professional.
Sincerely,
/s/ Dean C. Kopperud /s/ Lucinda S. Mezey /s/ James S. Byrd
Dean C. Kopperud Lucinda S. Mezey James S. Byrd
President Vice President, Vice President
Equities
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PORTFOLIO DIVERSIFICATION BY COUNTRY AS OF 10/31/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
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United States 38.0%
Japan 24.3%
Other 8.1%
Cash Equivalents/Receivables 5.7%
United Kingdom 5.6%
France 4.5%
Finland 3.1%
Spain 2.6%
Germany 2.3%
Italy 2.0%
Sweden 1.9%
Israel 1.9%
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TOP 10 EQUITY HOLDINGS AS OF 10/31/99
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
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<C> <S> <C>
1. Trend Micro, Inc. (Japan) 3.5%
2. Orange plc (United Kingdom) 3.2%
3. Tellabs, Inc. (United States) 2.9%
4. DSP Communications, Inc. (United States) 2.9%
5. Nokia Oyj (Finland) 2.8%
6. Cisco Systems, Inc. (United States) 2.5%
7. PE Corp-PE Biosystems Group (United States) 2.2%
8. Xilinx, Inc. (United States) 2.0%
9. Cheesecake Factory, Inc. (United States) 2.0%
10. Sunkus & Associates, Inc. (Japan) 1.9%
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CLASS B, C AND H AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
<CAPTION>
Since
1 Year Inception+
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
Class B shares Diamond +33.67% +15.71%
Class B shares Diamond Diamond +30.07% +15.51%
Class C shares Diamond +33.88% +15.76%
Class C shares Diamond Diamond +32.88% +15.76%
Class H shares Diamond +33.72% +15.72%
Class H shares Diamond Diamond +30.12% +15.52%
</TABLE>
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<C> <S>
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 (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 B and H have a CDSC of 4.00% if
redeemed within two years of purchase, 3.00% if redeemed within year three or
four, 2.00% if redeemed in year five, and 1.00% if redeemed in year six (with
a waiver of 10% of the amount invested) and 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
October 31, 1999.
+ Since November 14, 1994 -- Date shares were first offered to
the public.
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FORTIS GLOBAL GROWTH PORTFOLIO CLASS A
VALUE OF $10,000 INVESTED JULY 8, 1991
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
MSCI WORLD INDEX*** GLOBAL GROWTH PORTFOLIO CLASS A
<S> <C> <C> <C>
7/8/91 10,000 9,525
91 10,894 10,302
92 10,385 10,945
93 13,259 13,700
94 14,343 14,042
95 15,781 17,330
96 18,438 20,218
97 21,618 22,726
98 25,009 22,023
99 31,345 29,672
GLOBAL GROWTH PORTFOLIO CLASS A
AVERAGE ANNUAL TOTAL RETURN
1 YEAR 5 YEAR SINCE JULY 8, 1991@
WITH SALES CHARGE* +28.33% +15.01% +13.97%
WITHOUT SALES CHARGE** +34.73% +16.14% +14.64%
</TABLE>
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<C> <S>
Annual period ended October 31,
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 portfolio's 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.
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TEN LARGEST STOCK PORTFOLIO CHANGES FOR THE YEAR ENDED 10/31/99
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ADDITIONS: ELIMINATIONS:
Advantest Corp. 3Com Corp.
Aiful Corp. Covance, Inc.
EOG Resources Inc. Gartner Group, Inc. Class A
Global TeleSystems Group, Inc. Networks Associates, Inc.
Hikari Tsushin, Inc. Novartis AG
Murata Manufacturing Co. Ltd. Phoenix AG
Nintendo Co. Ltd. Randstad Holdings N.V.
Sunkus & Associates, Inc. Service Corp. International
Tandy Corp. (with rights) Total Renal Care Holdings, Inc.
Trend Micro, Inc. Wolters Kluwer N.V.
</TABLE>
3
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PORTFOLIO DIVERSIFICATION BY COUNTRY AS OF 10/31/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
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Japan 27.2%
Cash Equivalents/Receivables 17.1%
Other 11.3%
United Kingdom 7.5%
Netherlands 6.3%
France 6.7%
Germany 6.0%
United States 5.4%
Finland 4.1%
Italy 3.4%
Canada 3.2%
Spain 1.8%
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TOP 10 EQUITY HOLDINGS AS OF 10/31/99
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<CAPTION>
Percent of
Stocks Net Assets
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<C> <S> <C>
1. Trend Micro, Inc. (Japan) 4.4%
2. Sonera Oyj (Finland) 2.2%
3. Fujitsu Support and Service, Inc. (Japan) 2.1%
4. Sunkus & Associates, Inc. (Japan) 2.0%
5. Phone.com, Inc. (United States) 2.0%
6. ARM Holdings plc (United Kingdom) 1.9%
7. Hikari Tsushin, Inc. (Japan) 1.8%
8. Advantest Corp. (Japan) 1.3%
9. Taiwan Semiconductor Manufacturing Co. Ltd. ADR (Taiwan) 1.3%
10. Nokia Oyj ADR (Finland) 1.2%
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CLASS B, C AND H AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
<CAPTION>
Since
1 Year Inception+
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
Class B shares Diamond +65.56% +34.41%
Class B shares Diamond Diamond +61.96% +32.63%
Class C shares Diamond +65.72% +34.41%
Class C shares Diamond Diamond +64.72% +34.41%
Class H shares Diamond +65.53% +34.32%
Class H shares Diamond Diamond +61.93% +32.53%
</TABLE>
<TABLE>
<C> <S>
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 (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 B and H have a CDSC of 4.00% if
redeemed within two years of purchase, 3.00% if redeemed in year three or
four, 2.00% if redeemed in year five and 1.00% if redeemed in year six (with
a waiver of 10% of the amount invested). Class C has a CSDC of 1.00% if
redeemed within one year of purchase.
Diamond Without CDSC.
Diamond Diamond With CDSC. Assumes redemption on October 31, 1999.
+ Since March 2, 1998 -- Date shares were first offered to the
public.
</TABLE>
FORTIS INTERNATIONAL EQUITY PORTFOLIO CLASS A
VALUE OF $10,000 INVESTED MARCH 2, 1998
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
MSCI EAFE INDEX*** INTERNATIONAL EQUITY PORTFOLIO CLASS A
<S> <C> <C>
3/2/98 $10,000 $9,525
98 $9,887 $9,434
99 $12,198 $15,745
INTERNATIONAL EQUITY PORTFOLIO CLASS A
AVERAGE ANNUAL TOTAL RETURN
SINCE
1 YEAR MARCH 2, 1998@
With Sales Charge* +58.97% +31.32%
Without Sales Charge** +66.90% +35.22%
</TABLE>
<TABLE>
<C> <S>
Annual period ended October 31,
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 portfolio's total returns during the period,
including reinvestment of all dividend and capital gains
distributions without adjustment for sales charge.
*** An unmanaged index of the stocks of Europe, Australia and
the Far East.
@ Date shares were first offered to the public.
</TABLE>
TEN LARGEST STOCK PORTFOLIO CHANGES FOR THE YEAR ENDED 10/31/99
<TABLE>
<S> <C>
ADDITIONS: ELIMINATIONS:
Advantest Corp. Cap Gemini S.A.
Hikari Tsushin, Inc. Coflexip S.A. ADR
Nippon Telegraph & Telephone Corp. ADR Computacenter plc
Nortel Networks Corp. Electricidade de Portugal S.A.
Phone.com, Inc. Endesa S.A. ADR
Sonera Oyj Glaxo Wellcome plc ADR
Sunkus & Associates, Inc. HypoVereinsbank
Taiwan Semiconductor Manufacturing Co. Ltd. ADR IHC Caland N.V.
Trend Micro, Inc. Megachips Corp.
United Pan-Europe Communications N.V. Newbridge Networks Corp. ADR
</TABLE>
4
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FORTIS WORLDWIDE PORTFOLIOS, INC.
GLOBAL GROWTH PORTFOLIO
Schedule of Investments
October 31, 1999
COMMON STOCKS-92.53%
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<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
- ----------- ----------- ------------
<C> <S> <C> <C>
AUSTRALIA-0.50%
84,000 Broken Hill Proprietary Co. Ltd. -- STEEL AND IRON.......... $ 925,599 $ 867,612
----------- ------------
BRAZIL-0.41%
34,000 Aracruz Celulose S.A. ADR -- FOREST PRODUCTS................ 687,306 697,000
----------- ------------
FINLAND-3.14%
23,900 KCI Konecranes International plc (e) -- MACHINERY........... 563,329 615,472
42,000 Nokia Oyj -- TELECOMMUNICATION EQUIPMENT.................... 217,264 4,803,549
----------- ------------
780,593 5,419,021
----------- ------------
FRANCE-4.46%
8,000 Axa -- INSURANCE............................................ 923,437 1,127,620
6,000 Dexia France -- BANKS....................................... 753,423 845,085
4,300 Groupe Danone -- FOOD....................................... 782,321 1,096,035
1,580 Promodes -- FOOD............................................ 1,051,925 1,693,953
27,500 Rhone-Poulenc S.A. (Warrants) (a) -- CHEMICALS.............. 93,872 122,031
32,000 Sanofi-Synthelabo S.A. (a) -- DRUGS......................... 643,048 1,410,997
14,000 Sidel S.A. -- MACHINERY..................................... 1,089,395 1,397,963
----------- ------------
5,337,421 7,693,684
----------- ------------
GERMANY-1.12%
12,500 Mannesmann AG -- MACHINERY.................................. 1,192,057 1,927,455
----------- ------------
HUNGARY-1.40%
35,000 Matav Rt. ADR -- TELEPHONE SERVICES......................... 832,750 1,008,437
70,000 MOL Magyar Olaj-es Gazipari Rt. GDR -- OIL-REFINING......... 567,000 1,409,982
----------- ------------
1,399,750 2,418,419
----------- ------------
ISRAEL-1.85%
38,000 ECI Telecom Ltd. -- TELECOMMUNICATION EQUIPMENT............. 670,707 1,106,750
43,000 Teva Pharmaceutical Industries Ltd. ADR -- DRUGS............ 1,634,437 2,080,125
----------- ------------
2,305,144 3,186,875
----------- ------------
ITALY-2.05%
67,000 Industrie Natuzzi S.p.A. ADR -- FURNITURE................... 1,310,726 1,222,750
45,800 Mondadori (Arnoldo) Editore S.p.A. -- PUBLISHING............ 789,308 857,380
168,200 Telecom Italia S.p.A. -- TELEPHONE SERVICES................. 1,125,574 1,451,488
----------- ------------
3,225,608 3,531,618
----------- ------------
JAPAN-24.26%
21,000 Advantest Corp. -- ELECTRONIC-SEMICONDUCTOR AND CAPACITOR... 1,430,224 3,159,256
14,640 Aiful Corp. -- FINANCIAL SERVICES........................... 846,791 2,272,595
73,000 Canon, Inc. ADR -- OFFICE EQUIPMENT AND SUPPLIES............ 1,473,574 2,075,937
235 East Japan Railway Co. -- RAILROAD AND RAILROAD EQUIPMENT... 1,323,944 1,438,913
125,000 Fuji Bank Ltd. -- BANKS..................................... 760,392 1,712,821
41,000 Fujitsu Ltd. -- ELECTRONIC-SEMICONDUCTOR AND CAPACITOR...... 633,135 1,233,614
3,000 Fujitsu Support and Service, Inc. (e) -- BUSINESS
SERVICES.................................................. 93,974 842,277
3,200 Hikari Tsushin, Inc. -- TELECOMMUNICATIONS.................. 1,312,987 2,572,633
15,900 Murata Manufacturing Co. Ltd. -- ELECTRICAL-COMPONENTS AND
PARTS..................................................... 1,034,725 2,041,587
87,000 NEC Corp. -- ELECTRONIC COMPONENTS.......................... 1,058,614 1,759,007
13,400 Nintendo Co. Ltd. -- TOYS................................... 1,609,675 2,125,048
217 Nippon Telegraph & Telephone Corp. -- TELEPHONE SERVICES.... 1,832,201 3,326,945
12,000 Orix Corp. -- LEASING....................................... 1,106,409 1,609,812
15,000 Sony Corp. -- ELECTRONIC COMPONENTS......................... 973,223 2,337,102
48,600 Sunkus & Associates, Inc. -- RETAIL-MISCELLANEOUS........... 2,024,338 3,353,009
19,000 Takeda Chemical Industries Ltd. -- DRUGS.................... 770,866 1,090,552
12,600 TDK Corp. -- COMPUTER-HARDWARE.............................. 995,948 1,232,714
20,200 Tokyo Electron Ltd. -- ELECTRONIC-SEMICONDUCTOR AND
CAPACITOR................................................. 1,062,208 1,676,236
30,000 Trend Micro, Inc. -- COMPUTER-SOFTWARE...................... 1,545,335 5,950,556
----------- ------------
21,888,563 41,810,614
----------- ------------
</TABLE>
5
<PAGE>
FORTIS WORLDWIDE PORTFOLIOS, INC.
GLOBAL GROWTH PORTFOLIO (CONTINUED)
Schedule of Investments
October 31, 1999
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
- ----------- ----------- ------------
<C> <S> <C> <C>
MEXICO-0.85%
34,500 Grupo Televisa S.A. GDR (a) -- BROADCASTING................. $1,098,100 $ 1,466,250
----------- ------------
NETHERLANDS-1.63%
18,000 IHC Caland N.V. -- OIL AND GAS FIELD SERVICES............... 369,274 780,442
60,000 VNU N.V. -- PUBLISHING...................................... 1,395,594 2,027,572
----------- ------------
1,764,868 2,808,014
----------- ------------
NORWAY-1.31%
103,000 Petroleum Geo-Services ADR (a) -- OIL AND GAS FIELD
SERVICES.................................................. 1,553,552 1,506,375
70,000 Stolt Comex Seaway S.A. (a) -- OIL AND GAS FIELD SERVICES... 493,694 748,125
----------- ------------
2,047,246 2,254,500
----------- ------------
SOUTH KOREA-0.56%
61,000 Korea Electric Power Corp. ADR -- UTILITIES-ELECTRIC........ 816,362 960,750
----------- ------------
SPAIN-2.60%
65,000 Repsol S.A. -- OIL-CRUDE PETROLEUM AND GAS.................. 1,030,404 1,339,102
63,036 Telefonica S.A. ADR -- TELEPHONE SERVICES................... 1,381,717 3,147,860
----------- ------------
2,412,121 4,486,962
----------- ------------
SWEDEN-1.92%
77,500 Ericsson (L.M.) Telephone Co. Class B
ADR -- TELECOMMUNICATION EQUIPMENT........................ 750,719 3,313,125
----------- ------------
SWITZERLAND-0.87%
124 Roche Holding AG -- DRUGS................................... 809,161 1,489,270
----------- ------------
UNITED KINGDOM-5.58%
85,200 Capita Group plc -- BUSINESS SERVICES....................... 185,211 1,131,019
58,000 Dixons Group plc -- RETAIL-ELECTRIC PRODUCTS, RADIO, TV,
AUDIO..................................................... 728,446 1,026,907
38,700 Energis plc (a) -- TELEPHONE SERVICES....................... 185,606 1,233,224
225,000 Orange plc (a) -- TELEPHONE SERVICES........................ 707,347 5,589,723
150,000 Telewest Communications plc (with
rights) (a) (e) -- TELECOMMUNICATIONS..................... 452,671 649,796
----------- ------------
2,259,281 9,630,669
----------- ------------
UNITED STATES-38.02%
1,500 Akamai Technologies, Inc. (a) -- COMPUTER-SOFTWARE.......... 39,000 217,781
18,000 Alcoa, Inc. -- METALS-MINING AND MISCELLANEOUS.............. 945,329 1,093,500
52,000 Altera Corp. (a) -- ELECTRONIC-SEMICONDUCTOR AND
CAPACITOR................................................. 546,969 2,528,500
11,000 Applied Materials, Inc. (a) -- ELECTRONIC-CONTROLS AND
EQUIPMENT................................................. 616,344 987,938
34,000 Avant! Corp. (a) -- COMPUTER-SOFTWARE....................... 549,556 437,750
48,750 Baker Hughes, Inc. -- MACHINERY-OIL AND WELL................ 934,074 1,361,953
87,000 Bed Bath & Beyond, Inc. (a) -- RETAIL-SPECIALTY............. 1,073,371 2,898,188
56,000 Brinker International, Inc. (a) -- RESTAURANTS AND
FRANCHISING............................................... 1,593,112 1,305,500
19,950 Cardinal Health, Inc. -- HEALTH CARE SERVICES............... 686,723 860,344
14,500 Celera Genomics (a) -- BIOMEDICS, GENETICS RESEARCH AND
DEVELOPMENT............................................... 181,790 567,312
110,550 Cheesecake Factory, Inc. (a) -- RESTAURANTS AND
FRANCHISING............................................... 2,212,505 3,385,594
32,000 Chiron Corp. (a) -- MEDICAL SUPPLIES........................ 922,801 914,000
58,000 Cisco Systems, Inc. (a) -- COMPUTER-COMMUNICATION
EQUIPMENT................................................. 156,639 4,292,000
33,000 Citrix Systems, Inc. (a) -- COMPUTER-SOFTWARE............... 1,103,487 2,116,125
22,000 Comcast Corp. Special Class A (a) -- BROADCASTING........... 683,173 926,750
141,000 DSP Communications, Inc. (a) -- ELECTRONIC COMPONENTS....... 2,653,690 4,961,438
47,000 Enron Corp. -- NATURAL GAS TRANSMISSIONS.................... 1,535,425 1,877,063
87,000 EOG Resources Inc. -- OIL-CRUDE PETROLEUM AND GAS........... 2,029,723 1,810,688
76,000 Global TeleSystems Group, Inc. (a) -- TELECOMMUNICATIONS.... 1,908,460 1,819,250
24,000 Guidant Corp. (a) -- MEDICAL TECHNOLOGY..................... 853,892 1,185,000
43,800 Intuit, Inc. (a) -- COMPUTER-SOFTWARE....................... 676,525 1,275,675
19,000 MediaOne Group, Inc. (a) -- CABLE TELEVISION................ 728,186 1,350,188
26,000 Medtronic, Inc. (with rights) -- MEDICAL TECHNOLOGY......... 738,664 900,250
13,000 Motorola, Inc. -- TELECOMMUNICATION EQUIPMENT............... 898,597 1,266,688
71,100 Outback Steakhouse, Inc. (a) -- RESTAURANTS AND
FRANCHISING............................................... 1,684,569 1,635,300
58,000 PE Corp-PE Biosystems Group -- PRECISION INSTRUMENTS-TEST,
RESEARCH.................................................. 1,756,274 3,762,750
11,682 Schlumberger Ltd. -- OIL AND GAS FIELD SERVICES............. 423,643 707,491
</TABLE>
6
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
- ----------- ----------- ------------
<C> <S> <C> <C>
15,000 StarMedia Network, Inc. -- COMPUTER-COMMUNICATION
EQUIPMENT................................................. $ 225,000 $ 431,250
33,100 Sykes Enterprises, Inc. (a) -- BUSINESS SERVICES............ 679,926 1,021,963
53,000 Synopsys, Inc. (a) -- COMPUTER-SOFTWARE..................... 1,469,280 3,302,563
48,000 Tandy Corp. (with rights) -- RETAIL-SPECIALTY............... 1,857,356 3,021,000
80,000 Tellabs, Inc. (a) -- TELECOMMUNICATION EQUIPMENT............ 537,810 5,060,000
38,000 Tidewater, Inc. -- OIL AND GAS FIELD SERVICES............... 1,065,942 1,140,000
19,000 Univision Communications, Inc.
Class A (a) -- BROADCASTING............................... 669,000 1,616,188
44,400 Xilinx, Inc. (a) -- ELECTRONIC-SEMICONDUCTOR AND
CAPACITOR................................................. 490,924 3,490,950
----------- ------------
35,127,759 65,528,930
----------- ------------
TOTAL COMMON STOCKS......................................... $84,827,658 $159,490,768
=========== ============
</TABLE>
PREFERRED STOCKS-1.72%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
- ----------- ----------- ------------
<C> <S> <C> <C>
BRAZIL - 0.50%
11,000 Telecomunicacoes Brasileiras S.A. ADR Preferred
-- TELECOMMUNICATIONS.................................... $ 678,256 $ 856,625
----------- ------------
GERMANY-1.22%
4,900 SAP AG Preferred -- COMPUTER-SOFTWARE...................... 277,461 2,112,690
----------- ------------
TOTAL PREFERRED STOCKS...................................... 955,717 2,969,315
----------- ------------
TOTAL LONG-TERM INVESTMENTS................................. $85,783,375 $162,460,083
=========== ============
</TABLE>
SHORT-TERM INVESTMENTS-4.47%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
- ----------- ------------
<C> <S> <C>
BANKS-2.23%
$3,841,287 U.S. Bank N.A. Money Market Variable Rate Time Deposit,
Current rate -- 5.21%..................................... $ 3,841,287
------------
DIVERSIFIED FINANCE-2.24%
3,870,000 Associates Corp. Master Variable Rate Note, Current
rate -- 5.18%............................................. 3,870,000
------------
TOTAL SHORT-TERM INVESTMENTS................................ 7,711,287
------------
TOTAL INVESTMENTS IN SECURITIES (COST: $93,494,662)(B)...... $170,171,370
============
</TABLE>
(a) Presently not paying dividend income.
(b) At October 31, 1999, the cost of securities for federal income tax purposes
was $93,513,810 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $77,616,433
Unrealized depreciation..................................... (958,873)
- -------------------------------------------------------------------------
Net unrealized appreciation................................. $76,657,560
- -------------------------------------------------------------------------
</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 issued within the 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 to 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>
1998 3,000 Fujitsu Support and Service, Inc. $ 93,974
1996 23,900 KCI Konecranes International plc 563,329
1999 150,000 Telewest Communications plc (with rights) 452,671
</TABLE>
The value of these securities at October 31, 1999, was $2,107,545, which
represents 1.22% of total net assets.
7
<PAGE>
FORTIS WORLDWIDE PORTFOLIOS, INC.
INTERNATIONAL EQUITY PORTFOLIO
Schedule of Investments
October 31, 1999
COMMON STOCKS-81.39%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
- ----------- ----------- -----------
<C> <S> <C> <C>
AUSTRALIA-1.13%
6,000 Broken Hill Proprietary Company Ltd. ADR -- MINERALS........ $ 118,297 $ 126,750
2,500 World Equity Benchmark Share-Australia Index Series -- UNIT
INVESTMENT TRUST.......................................... 25,100 25,156
---------- -----------
143,397 151,906
---------- -----------
BRAZIL-0.46%
3,000 Aracruz Celulose S.A. ADR -- FOREST PRODUCTS................ 53,242 61,500
---------- -----------
CANADA-3.17%
11,000 Domtar, Inc. -- PAPER....................................... 101,554 132,742
2,500 Nortel Networks Corp. -- TELECOMMUNICATION EQUIPMENT........ 154,525 154,844
6,000 Precision Drilling Corp. (a) -- OIL AND GAS FIELD
SERVICES.................................................. 139,102 139,125
---------- -----------
395,181 426,711
---------- -----------
DENMARK-0.68%
700 Vestas Wind Systems A/S (a)(e) -- MACHINERY................. 28,631 91,558
---------- -----------
FINLAND-4.14%
12,000 Merita plc Class A -- BANKS................................. 69,333 69,499
1,400 Nokia Oyj ADR -- TELECOMMUNICATION EQUIPMENT................ 50,173 161,787
10,000 Sonera Oyj -- TELECOMMUNICATIONS............................ 256,619 300,089
780 Tietoenator Oyj Abp -- BUSINESS SERVICES.................... 19,768 27,055
---------- -----------
395,893 558,430
---------- -----------
FRANCE-6.68%
4,500 Alcatel ADR -- TELECOMMUNICATION EQUIPMENT.................. 132,864 138,094
1,700 Axa ADR -- INSURANCE........................................ 107,175 118,575
450 Castorama Dubois Investisse -- RETAIL-MISCELLANEOUS......... 92,901 134,709
300 Dexia France -- BANKS....................................... 37,840 42,254
1,000 Equant N.V. (a) -- BUSINESS SERVICES........................ 27,020 97,227
600 Groupe Danone ADR -- FOOD................................... 24,411 30,750
90 Promodes -- FOOD............................................ 60,849 96,491
800 Sanofi-Synthelabo S.A. (a) -- DRUGS......................... 22,534 35,275
400 Sidel S.A. -- MACHINERY..................................... 31,111 39,942
1,300 STMicroelectronics N.V. -- ELECTRONIC-SEMICONDUCTOR AND
CAPACITOR................................................. 99,365 118,137
300 Suez Lyonnaise des Eaux S.A. -- UTILITIES-WATER AND SEWER... 45,929 48,403
---------- -----------
681,999 899,857
---------- -----------
GERMANY-5.40%
400 Allianz AG -- INSURANCE..................................... 122,907 121,928
1,300 BASF AG ADR -- CHEMICALS.................................... 54,925 58,685
1,400 Bayer AG ADR -- CHEMICALS................................... 57,750 57,240
120 Celanese AG (a) -- CHEMICALS................................ 1,738 1,867
1,200 Deutsche Bank AG -- BANKS................................... 77,231 85,480
1,700 Deutsche Telekom AG -- TELECOMMUNICATIONS................... 69,641 78,354
3,000 Epcos AG (a) -- ELECTRICAL-COMPONENTS AND PARTS............. 101,472 122,348
1,200 Hoechst AG ADR -- CHEMICALS................................. 48,574 53,100
500 Mannesmann AG -- MACHINERY.................................. 44,608 77,098
800 Siemens AG -- ELECTRONIC-CONTROLS AND EQUIPMENT............. 58,901 71,475
---------- -----------
637,747 727,575
---------- -----------
HONG KONG-0.36%
4,000 World Equity Benchmark Share-Hong Kong Index Series -- UNIT
INVESTMENT TRUST.......................................... 40,410 48,000
---------- -----------
HUNGARY-0.43%
2,000 Matav Rt. ADR -- TELEPHONE SERVICES......................... 53,325 57,625
---------- -----------
IRELAND-0.93%
30,000 Eircom plc (a) -- TELECOMMUNICATIONS........................ 119,890 125,028
---------- -----------
ISRAEL-0.36%
1,000 Teva Pharmaceutical Industries Ltd. ADR -- DRUGS............ 39,550 48,375
---------- -----------
</TABLE>
8
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
- ----------- ----------- -----------
<C> <S> <C> <C>
ITALY-3.42%
1,600 Bipop S.p.A. (a) -- FINANCIAL SERVICES...................... $ 75,559 $ 67,691
16,000 Bulgari S.p.A. -- RETAIL-SPECIALTY.......................... 118,561 112,678
8,000 Italcementi S.p.A. -- BUILDING MATERIALS.................... 107,068 100,990
7,500 Mondadori (Arnoldo) Editore S.p.A. -- PUBLISHING............ 119,716 140,401
4,500 Telecom Italia S.p.A. -- TELEPHONE SERVICES................. 32,617 38,833
---------- -----------
453,521 460,593
---------- -----------
JAPAN-27.22%
1,200 Advantest Corp. -- ELECTRONIC-SEMICONDUCTOR AND CAPACITOR... 135,227 180,529
960 Aiful Corp. -- FINANCIAL SERVICES........................... 55,364 149,023
6,000 Bank of Tokyo-Mitsubishi Ltd. -- BANKS...................... 84,515 99,348
2,000 Canon, Inc. ADR -- OFFICE EQUIPMENT AND SUPPLIES............ 43,625 56,875
15 East Japan Railway Co. -- RAILROAD AND RAILROAD EQUIPMENT... 84,507 91,846
4,000 Fuji Bank Ltd. -- BANKS..................................... 24,353 54,810
3,000 Fujitsu Ltd. -- ELECTRONIC-SEMICONDUCTOR AND CAPACITOR...... 46,284 90,264
1,000 Fujitsu Support and Service, Inc. (e) -- BUSINESS
SERVICES.................................................. 31,414 280,759
300 Hikari Tsushin, Inc. -- TELECOMMUNICATIONS.................. 123,114 241,184
800 Honda Motor Co. Ltd. ADR -- AUTOMOBILE MANUFACTURERS........ 56,400 67,300
1,000 Internet Initiative Japan, Inc. ADR (a) -- BUSINESS
SERVICES.................................................. 23,000 53,750
450 Matsushita Electric Industrial Co. Ltd.
ADR -- ELECTRONIC-CONTROLS AND EQUIPMENT.................. 88,974 95,316
1,100 Murata Manufacturing Co. Ltd. -- ELECTRICAL-COMPONENTS AND
PARTS..................................................... 71,585 141,242
6,000 NEC Corp. -- ELECTRONIC COMPONENTS.......................... 73,573 121,311
600 Nintendo Co. Ltd. -- TOYS................................... 72,232 95,151
2,024 Nippon Telegraph & Telephone Corp. ADR -- TELECOMMUNICATION
EQUIPMENT................................................. 120,665 156,607
1,000 Orix Corp. -- LEASING....................................... 92,193 134,151
3,000 Shin-Etsu Chemical Co. Ltd. -- CHEMICALS.................... 108,455 123,611
800 Sony Corp. ADR -- ELECTRONIC-CONTROLS AND EQUIPMENT......... 90,565 127,800
4,000 Sunkus & Associates, Inc. -- RETAIL-MISCELLANEOUS........... 157,289 275,968
1,000 Takeda Chemical Industries Ltd. -- DRUGS.................... 40,577 57,397
500 TDK Corp. -- COMPUTER-HARDWARE.............................. 39,723 48,917
1,800 Tokyo Electron Ltd. -- ELECTRONIC-SEMICONDUCTOR AND
CAPACITOR................................................. 71,955 149,368
3,000 Trend Micro, Inc. -- COMPUTER-SOFTWARE...................... 154,255 595,056
2,500 World Equity Benchmark Share-Japan Index Series -- UNIT
INVESTMENT TRUST.......................................... 25,725 37,187
2,000 Yamada Denki Co. Ltd. -- RETAIL-ELECTRIC PRODUCTS, RADIO,
TV, AUDIO................................................. 45,274 142,392
---------- -----------
1,960,843 3,667,162
---------- -----------
MEXICO-1.24%
27,000 Cifra S.A. de C.V. (a) -- RETAIL-GROCERY.................... 39,705 39,242
3,000 Grupo Televisa S.A. GDR (a) -- BROADCASTING................. 116,205 127,500
---------- -----------
155,910 166,742
---------- -----------
NETHERLANDS-6.28%
2,000 ASM Lithography Holding N.V. (a) -- BUSINESS SERVICES....... 128,362 145,250
1,000 Getronics N.V. -- BUSINESS SERVICES......................... 40,838 49,822
900 ING Groep N.V. -- INSURANCE................................. 43,099 53,051
1,052 Koninklijke Philips Electronics N.V. ADR -- ELECTRONIC
COMPONENTS................................................ 91,773 109,342
2,500 Pakhoed Holding N.V. -- TRANSPORTATION...................... 59,811 69,767
2,300 Royal Dutch Petroleum Co. NY Shares -- OIL-CRUDE PETROLEUM
AND GAS................................................... 131,580 137,856
2,000 United Pan-Europe Communications
N.V. (a) -- TELECOMMUNICATIONS............................ 65,540 153,671
7,000 Versatel Telecom International N.V. (a) -- TELEPHONE
SERVICES.................................................. 73,794 86,821
1,200 VNU N.V. -- PUBLISHING...................................... 36,628 40,551
---------- -----------
671,425 846,131
---------- -----------
RUSSIA-0.25%
2,000 Vimpel-Communications ADR (a) -- TELEPHONE SERVICES......... 29,995 33,750
---------- -----------
SINGAPORE-0.21%
3,500 World Equity Benchmark Share-Singapore Index Series -- UNIT
INVESTMENT TRUST.......................................... 22,890 28,437
---------- -----------
</TABLE>
9
<PAGE>
FORTIS WORLDWIDE PORTFOLIOS, INC.
INTERNATIONAL EQUITY PORTFOLIO (CONTINUED)
Schedule of Investments
October 31, 1999
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
- ----------- ----------- -----------
<C> <S> <C> <C>
SOUTH KOREA-0.51%
4,400 Korea Electric Power Corp. ADR -- UTILITIES-ELECTRIC........ $ 60,915 $ 69,300
---------- -----------
SPAIN-1.81%
2,200 Argentaria S.A. -- BANKS.................................... 44,427 48,792
1,000 Repsol S.A. -- OIL-CRUDE PETROLEUM AND GAS.................. 20,479 20,602
4,000 Repsol S.A. ADR -- OIL-CRUDE PETROLEUM AND GAS.............. 74,144 82,000
1,854 Telefonica S.A. ADR -- TELEPHONE SERVICES................... 73,671 92,584
---------- -----------
212,721 243,978
---------- -----------
SWEDEN-1.11%
3,500 Ericsson (L.M.) Telephone Co. Class B
ADR -- TELECOMMUNICATION EQUIPMENT........................ 105,375 149,625
---------- -----------
SWITZERLAND-1.36%
8 Roche Holding AG -- DRUGS................................... 94,611 96,082
300 UBS AG -- BANKS............................................. 88,662 87,320
---------- -----------
183,273 183,402
---------- -----------
TAIWAN-1.28%
5,000 Taiwan Semiconductor Manufacturing Co. Ltd.
ADR (a) -- ELECTRONIC-SEMICONDUCTOR AND CAPACITOR......... 134,603 173,125
---------- -----------
UNITED KINGDOM-7.52%
9,200 ARM Holdings plc (a) -- ELECTRONIC-SEMICONDUCTOR AND
CAPACITOR................................................. 22,333 260,864
604 BP Amoco plc ADR -- OIL-CRUDE PETROLEUM AND GAS............. 23,205 34,881
800 British Telecommunications plc ADR -- TELEPHONE SERVICES.... 139,960 144,000
2,000 Dixons Group plc -- RETAIL-ELECTRIC PRODUCTS, RADIO, TV,
AUDIO..................................................... 25,129 35,411
6,000 HSBC Holdings plc -- BANKS.................................. 71,679 72,012
2,800 Lloyds TSB Group plc -- BANKS............................... 37,203 38,640
2,600 National Westminster Bank plc -- BANKS...................... 52,090 58,619
1,500 Pearson plc -- PUBLISHING................................... 20,729 33,450
6,600 Scottish and Southern Energy plc -- UTILITIES-ELECTRIC...... 65,184 62,218
15,000 Telewest Communications plc (with
rights) (a) (e) -- TELECOMMUNICATIONS..................... 45,300 64,980
6,932 Unilever plc -- CONSUMER GOODS.............................. 64,385 64,212
3,000 Vodafone AirTouch plc ADR -- TELEPHONE SERVICES............. 96,033 143,813
---------- -----------
663,230 1,013,100
---------- -----------
UNITED STATES-5.44%
900 Comverse Technology, Inc. (a) -- COMPUTER-SOFTWARE.......... 59,963 102,150
3,000 Enron Corp. -- NATURAL GAS TRANSMISSIONS.................... 90,671 119,813
6,000 Global TeleSystems Group, Inc. (a) -- TELECOMMUNICATIONS.... 118,408 143,625
1,300 Phone.com, Inc. (a) -- COMPUTER-SOFTWARE.................... 20,800 267,150
3,500 StarMedia Network, Inc. -- COMPUTER-COMMUNICATION
EQUIPMENT................................................. 52,500 100,625
---------- -----------
342,342 733,363
---------- -----------
TOTAL COMMON STOCKS......................................... $7,586,308 $10,965,273
========== ===========
</TABLE>
PREFERRED STOCKS-1.47%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
- ----------- ----------- -----------
<C> <S> <C> <C>
BRAZIL-0.83%
7,000 Petroleo Brasileiro S.A. ADR Preferred -- OIL-CRUDE
PETROLEUM AND GAS......................................... $ 102,625 $ 111,883
---------- -----------
GERMANY-0.64%
200 SAP AG Preferred -- COMPUTER-SOFTWARE...................... 81,231 86,232
---------- -----------
TOTAL PREFERRED STOCKS...................................... 183,856 198,115
---------- -----------
TOTAL LONG-TERM INVESTMENTS................................. $7,770,164 $11,163,388
========== ===========
</TABLE>
10
<PAGE>
SHORT-TERM INVESTMENTS-18.73%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
- ----------- -----------
<C> <S> <C>
BANKS-3.91%
$ 525,970 U.S. Bank N.A. Money Market Variable Rate Time Deposit,
Current rate -- 5.21%..................................... $ 525,970
-----------
U.S. GOVERNMENT AGENCY-11.11%
500,000 Federal Home Loan Mortgage Corp., 5.24% 11-29-1999.......... 497,930
1,000,000 Federal Home Loan Mortgage Corp., 5.30% 11-5-1999........... 999,276
-----------
1,497,206
-----------
U.S. OTHER DIRECT FEDERAL OBLIGATIONS-3.70%
500,000 Federal Farm Credit Bank, 5.35% 11-18-1999.................. 498,688
-----------
TOTAL SHORT-TERM INVESTMENTS................................ 2,521,864
-----------
TOTAL INVESTMENTS IN SECURITIES (COST: $10,292,028) (B)..... $13,685,252
===========
</TABLE>
(a) Presently not paying dividend income.
(b) At October 31, 1999, the cost of securities for federal income tax purposes
was $10,292,028 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $3,419,486
Unrealized depreciation..................................... (26,262)
- ------------------------------------------------------------------------
Net unrealized appreciation................................. $3,393,224
- ------------------------------------------------------------------------
</TABLE>
(c) See Note 1 of accompanying Notes to Financial Statement regarding valuation
of securities.
(d) Note: Percentage of investments as shown is the ratio of total market value
to total net assets.
(e) Securities issued within the 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 to 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>
1998 1,000 Fujitsu Support and Service, Inc. 31,414
1999 15,000 Telewest Communications plc (with rights) 45,300
1998 700 Vestas Wind Systems A/S 28,631
</TABLE>
The value of these securities at October 31, 1999, was $437,297 which
represents 3.25% of total net assets.
11
<PAGE>
FORTIS WORLDWIDE PORTFOLIOS, INC.
Statements of Assets and Liabilities
October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL INTERNATIONAL
GROWTH EQUITY
PORTFOLIO PORTFOLIO
--------- -------------
<S> <C> <C>
ASSETS:
Investments in securities, as detailed in
the accompanying schedules, at market
(cost $93,494,662; $10,292,028) (Note
1)....................................... $170,171,370 $13,685,252
Collateral for securities lending
transactions (Note 1).................... 32,438,836 --
Receivables:
Investment securities sold............... 2,276,142 318,112
Interest and dividends................... 178,509 8,722
Subscriptions of capital stock........... -- 29,642
Deferred registration costs (Note 1)....... 13,670 8,722
Deferred organization costs (Note 1)....... -- 16,144
Prepaid expenses........................... -- 10,468
------------ -----------
TOTAL ASSETS................................. 205,078,527 14,077,062
------------ -----------
LIABILITIES:
Unrealized depreciation on forward foreign
currency contracts-net (Note 1 and 3).... 4,063 478
Payable upon return of securities loaned
(Note 1)................................. 32,438,836 --
Payable for investment securities
purchased................................ 39,000 580,257
Redemptions of capital stock............... 19,477 --
Payable for investment advisory and
management fees (Note 2)................. 139,536 10,459
Payable for distribution fees (Note 2)..... 7,475 623
Accounts payable and accrued expenses...... 71,048 13,430
------------ -----------
TOTAL LIABILITIES............................ 32,719,435 605,247
------------ -----------
NET ASSETS:
Net proceeds of capital stock, par value
$.01 per share-authorized 10,000,000,000;
10,000,000,000 shares; respectively...... 75,833,715 9,956,850
Unrealized appreciation of investments in
securities and the translation of assets
and liabilities denominated in foreign
currency................................. 76,675,464 3,393,423
Accumulated net realized gain from the sale
of investments and foreign currency
transactions............................. 19,849,913 121,542
------------ -----------
TOTAL NET ASSETS............................. $172,359,092 $13,471,815
------------ -----------
SHARES OUTSTANDING AND NET ASSET VALUE PER
SHARE:
Class A shares (based on net assets of
$130,195,214 and $10,266,995; respectively
and 4,169,414 and 599,179 shares
outstanding; respectively)................. $31.23 $17.14
------------ -----------
Class B shares (based on net assets of
$14,766,030 and $959,273; respectively and
490,065 and 56,278 shares outstanding;
respectively).............................. $30.13 $17.05
------------ -----------
Class C shares (based on net assets of
$5,375,240 and $596,934; respectively and
178,076 and 35,021 shares outstanding;
respectively).............................. $30.19 $17.05
------------ -----------
Class H shares (based on net assets of
$22,022,608 and $1,648,613; respectively
and 730,729 and 96,813 shares outstanding;
respectively).............................. $30.14 $17.03
------------ -----------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
12
<PAGE>
FORTIS WORLDWIDE PORTFOLIOS, INC.
Statements of Operations
For the year ended October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL INTERNATIONAL
GROWTH EQUITY
PORTFOLIO PORTFOLIO
--------- -------------
<S> <C> <C>
NET INVESTMENT LOSS
Income:
Interest income.......................... $ 413,398 $ 43,161
Dividend income (Net of foreign
witholding taxes of $77,781 and $6,171,
respectively)........................... 837,445 58,577
Fee income (Note 1)...................... 33,300 --
----------- ----------
Total income............................... 1,284,143 101,738
----------- ----------
Expenses:
Investment advisory and management fees
(Note 2)................................ 1,570,656 66,564
Distribution fees (Class A) (Note 2)..... 297,836 13,869
Distribution fees (Class B) (Note 2)..... 129,172 3,820
Distribution fees (Class C) (Note 2)..... 50,706 1,287
Distribution fees (Class H) (Note 2)..... 199,431 5,983
Registration fees (Note 2)............... 41,329 48,331
Shareholders' notices and reports........ 105,400 2,600
Legal and auditing fees.................. 27,000 13,100
Custodian fees........................... 42,500 9,300
Directors' fees and expenses............. 21,800 630
Amortization of organization costs (Note
1)...................................... -- 4,843
Other.................................... 11,642 323
----------- ----------
Total expenses............................. 2,497,472 170,650
Less waived and reimbursed expenses (Note
2)...................................... (5,868) (49,174)
----------- ----------
Net expenses............................... 2,491,604 121,476
----------- ----------
NET INVESTMENT LOSS.......................... (1,207,461) (19,738)
----------- ----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
AND FOREIGN CURRENCY (NOTE 1):
Net realized gain (loss) from:
Investments.............................. 20,967,969 224,593
Foreign currency transactions............ (8,000) (692)
----------- ----------
NET REALIZED GAIN ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS...................... 20,959,969 223,901
----------- ----------
Net change in unrealized appreciation
(depreciation) from:
Investments.............................. 27,677,283 3,367,401
Translation of assets and liabilities
denominated in foreign currency......... (7,953) 9
----------- ----------
NET CHANGE IN UNREALIZED APPRECIATION ON
INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS............................... 27,669,330 3,367,410
----------- ----------
NET GAIN ON INVESTMENTS AND FOREIGN
CURRENCY................................... 48,629,299 3,591,311
----------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS................................. $47,421,838 $3,571,573
=========== ==========
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
13
<PAGE>
FORTIS WORLDWIDE PORTFOLIOS, INC.
Statements of Changes in Net Assets
GLOBAL GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED YEAR ENDED
OCTOBER 31, 1999 OCTOBER 31, 1998
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Net investment loss........................ $ (1,207,461) $ (965,929)
Net realized gain on investments and
foreign currency transactions............ 20,959,969 59,734
Net change in unrealized appreciation
(depreciation) on investments and foreign
currency transactions.................... 27,669,330 (3,486,892)
-------------- ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS.................. 47,421,838 (4,393,087)
-------------- ------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from sale of shares
Class A (4,879,613 and 1,552,939
shares)................................. 127,633,641 36,123,386
Class B (83,217 and 131,138 shares)...... 2,157,182 3,180,889
Class C (1,178,211 and 226,311 shares)... 31,361,408 5,083,375
Class H (98,991 and 233,363 shares)...... 2,541,509 5,638,972
Less cost of repurchase of shares
Class A (5,488,888 and 2,011,444
shares)................................. (144,495,487) (47,665,203)
Class B (111,406 and 101,731 shares)..... (2,845,259) (2,447,446)
Class C (1,222,259 and 203,240 shares)... (32,536,494) (4,576,747)
Class H (190,306 and 209,304 shares)..... (4,871,082) (5,020,976)
-------------- ------------
NET DECREASE IN NET ASSETS FROM SHARE
TRANSACTIONS............................... (21,054,582) (9,683,750)
-------------- ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS...... 26,367,256 (14,076,837)
-------------- ------------
NET ASSETS:
Beginning of year.......................... 145,991,836 160,068,673
-------------- ------------
End of year................................ $ 172,359,092 $145,991,836
============== ============
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
14
<PAGE>
FORTIS WORLDWIDE PORTFOLIOS, INC.
Statements of Changes in Net Assets
INTERNATIONAL EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE JANUARY 27,1998
YEAR ENDED (INCEPTION) TO
OCTOBER 31, 1999 OCTOBER 31, 1998
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss)............... $ (19,738) $ 14,336
Net realized gain (loss) on investments and
foreign currency transactions............ 223,901 (96,045)
Net change in unrealized appreciation of
investments and foreign currency
transactions............................. 3,367,410 26,013
----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS.................. 3,571,573 (55,696)
----------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A.................................... (32,918) --
Class B.................................... (483) --
Class C.................................... (104) --
Class H.................................... (977) --
----------- ----------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS.......... (34,482) --
----------- ----------
CAPITAL STOCK TRANSACTIONS:
Proceeds from sale of shares
Class A (546,092 and 387,353 shares)..... 7,678,118 4,043,736
Class B (50,148 and 19,009 shares)....... 726,902 211,529
Class C (34,331 and 7,175 shares)........ 516,579 71,961
Class H (77,598 and 29,140 shares)....... 1,142,843 319,091
Proceeds from shares issued as a result of
reinvested dividends
Class A (2,974 and 0 shares)............. 32,865 --
Class B (43 and 0 shares)................ 483 --
Class C (9 and 0 shares)................. 104 --
Class H (88 and 0 shares)................ 973 --
Less cost of repurchase of shares
Class A (274,307 and 62,933 shares)...... (3,733,662) (655,273)
Class B (7,802 and 5,120 shares)......... (117,721) (54,231)
Class C (2,320 and 4,174 shares)......... (29,273) (41,910)
Class H (6,764 and 3,249 shares)......... (87,457) (35,237)
----------- ----------
NET INCREASE IN NET ASSETS FROM SHARE
TRANSACTIONS............................... 6,130,754 3,859,666
----------- ----------
TOTAL INCREASE IN NET ASSETS................. 9,667,845 3,803,970
----------- ----------
NET ASSETS:
Beginning of period........................ 3,803,970 --
----------- ----------
End of period (includes undistributed net
investment income of $0 and $32,440,
respectively)............................ $13,471,815 $3,803,970
=========== ==========
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
15
<PAGE>
FORTIS WORLDWIDE PORTFOLIOS, INC.
Notes to Financial Statements
- --------------------------------------------------------------------------------
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: The portfolios are
non-diversified series of Fortis Worldwide Portfolios, Inc., ("Fortis
Worldwide"), an open-end management investment company. The primary
investment objective of each of the portfolios is long-term capital
appreciation, with current income as a secondary objective. The Global Growth
Portfolio ("Global Growth") seeks to achieve its 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 International Equity Portfolio ("International Equity") seeks to
achieve its objective by investing primarily in equity securities of non-U.S.
companies. The articles of incorporation of Fortis Worldwide Portfolios, Inc.
permits the Board of Directors to create additional portfolios in the future.
The portfolios offer Class A, Class B, Class C and Class H shares. The Global
Growth Portfolio began to issue multiple class shares effective November 14,
1994. The inception of International Equity Portfolio was January 27, 1998,
and the date shares were first offered to the public was March 2, 1998.
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 portfolios 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. 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. Securities for which quotations are not readily available 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 security transactions, and other translation
gains or losses on dividends, interest income and foreign withholding taxes.
The portfolios 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 portfolios and the
resulting unrealized appreciation or depreciation are determined using
foreign currency exchange rates from an independent pricing service. The
portfolios are 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
ex-date 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, 1999, the cost of purchases and proceeds from
sales of securities (other than short-term securities) aggregated $72,124,349
and $90,323,295 for Global Growth Portfolio; and $8,353,818 and $3,667,973
for International Equity Portfolio, respectively.
LENDING OF PORTFOLIO SECURITIES: At October 31, 1999, securities valued at
$32,220,854 were on loan to brokers from the Global Growth Portfolio. For
collateral, the Global Growth Portfolio's custodian received $32,438,836 in
cash which is maintained in a separate account and invested in short term
investment vehicles. Fee income from securities lending amounted to $33,300
for the year ended October 31, 1999. The risks to the portfolios 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.
FEDERAL TAXES: The portfolios intend to qualify, under the Internal Revenue
Code, as regulated investment companies 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, each portfolio intends to distribute substantially
all of its net investment income and realized gains, if any, to avoid the
payment of federal excise taxes.
Net investment income and net realized gains may differ for financial
statement and tax purposes because of foreign exchange gains and losses,
treatment of net investment losses 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 portfolios.
16
<PAGE>
- --------------------------------------------------------------------------------
On the Statement of Assets and Liabilities, due to permanent book-to-tax
differences, accumulated net realized gain (loss) and undistributed net
investment income have been increased (decreased), resulting in a net
reclassification adjustment to reduce paid-in-capital by the following:
<TABLE>
<CAPTION>
Undistributed
Net Accumulated
Investment Paid-in- Net Realized
Income Capital Gains
<S> <C> <C> <C>
----------------------------------------------------------------------------------------------
Global Growth Portfolio...................... $1,207,461 $(1,215,461) $8,000
International Equity Portfolio............... $ 21,780 $(15,446) $(6,334)
</TABLE>
INCOME AND CAPITAL GAINS DISTRIBUTIONS: It is the policy of the portfolios 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. Organizational costs were incurred with the
commencement of operations of the International Equity Portfolio. These costs
are being amortized over 60 months on a straight line basis.
ILLIQUID SECURITIES: At October 31, 1999, investments in securities for the
funds included issues that are illiquid. Global Growth and International
Equity currently limit investments in illiquid securities to 15% of total net
assets, at market value, at date of purchase. The aggregate values of such
securities at October 31, 1999, were $2,107,545 for Global Growth and
$437,297 for International Equity which represents 1.22% and 3.25% of net
assets, respectively. Pursuant to guidelines adopted by the Board of
Directors, certain unregistered securities are determined to be liquid and
are not included within the percent limitations specified above.
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.
BANK BORROWINGS: Several Fortis Funds including the Global Growth Portfolio
and International Equity Portfolio have a revolving credit agreement with
Norwest Bank Minnesota N.A., whereby the portfolios are permitted to have a
bank borrowing for temporary and emergency purposes to meet large redemption
requests by shareholders; and cover securities purchased when matched or when
earlier trades have failed. The agreement, which enables the portfolios to
participate with other Fortis Funds, permits borrowings up to $25 million,
collectively. Interest is expensed to each participating fund based on its
borrowings and will be calculated at the borrowers option of: 1) the Prime
Index; 2) the Federal Funds rate plus a Margin of 37.5 basis points, or;
3) the Libor rate plus a "Margin" of 37.5 basis points. The Prime index is
defined as the higher of: A) the rate that Norwest Bank Minnesota N.A.
announces from time to time as its prime rate or B) the Federal Funds rate
plus 50 basis points. Each portfolio pays a commitment fee equal to its pro
rata share of the amount of the credit facility at a rate of 0.08% per annum.
The Global Growth and International Equity Portfolios had no borrowings
during the year ended October 31, 1999.
OTHER: At October 31, 1999 Fortis Advisors, Inc. owned 210,804 shares of the
International Equity Portfolio.
2. PAYMENTS TO RELATED PARTIES: Fortis Advisers, Inc., is the investment adviser
for the portfolios. 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 for the portfolios.
In addition to the investment advisory and management fee, Classes A, B, C
and H pay Fortis Investors, Inc. (the Funds' 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 of each of the
portfolios) 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 or
redeemers of the funds' shares) aggregating $271,495 and $81,717 for
Class A, $35,915 and $1,467 for Class B, $1,484 and $80 for Class C, and
$71,045 and $1,651 for Class H for the Global Growth and International Equity
Portfolios, respectively, for the year ended October 31, 1999.
Advisers has waived expenses for 12b-1 fees charged in excess of National
Association of Securities Dealers limitations. For the year ended October 31,
1999, Advisers waived $5,868 for Class C shares.
Advisers has voluntarily undertaken to limit annual expenses for
International Equity (exclusive of interest, taxes, brokerage commissions and
non-recurring extraordinary charges and expenses) commencing March 2, 1998 to
1.70% of average daily net assets for Class A, and 2.45% for Classes B, C and
H. For the year ended October 31, 1999, Advisers reimbursed the portfolio
$49,174.
Legal fees and expenses aggregating $7,000 and $200 for the Global Growth and
International Equity portfolios, respectively, for the year ended
October 31, 1999, were paid to a law firm of which the secretary of the
portfolios is a partner.
17
<PAGE>
FORTIS WORLDWIDE PORTFOLIOS, INC.
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
3. FORWARD FOREIGN CURRENCY CONTRACTS: At October 31, 1999, the portfolios
entered into forward foreign currency exchange contracts that obligated the
portfolios to receive currencies at a specified future date. The unrealized
depreciation of $4,063 and $478 for Global Growth and International Equity
Portfolio on these contracts is included in the accompanying financial
statements. The terms of the open contracts are as follows:
<TABLE>
<CAPTION>
GLOBAL GROWTH PORTFOLIO
----------------------------------------------------------------------------------------------------------------------------
Currency U.S. Dollar Value Currency U.S. Dollar Value Appreciation/
Settle Date To Be Delivered As Of October 31, 1999 To Be Received As Of October 31, 1999 (Depreciation)
<S> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------------------
November 2, 1999 343,428 $ 360,978 359,569 $ 359,569 $(1,409)
Euro U.S.Dollar
November 3, 1999 415,720 436,963 435,259 435,259 (1,704)
Euro U.S.Dollar
November 5, 1999 237,557 249,696 248,746 248,746 (950)
Euro U.S.Dollar
--------------------- --------------------- --------------
$ 1,047,637 $ 1,043,574 $(4,063)
--------------------- --------------------- --------------
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY PORTFOLIO
-----------------------------------------------------------------------------------------------------------------------------
Currency U.S. Dollar Value Currency U.S. Dollar Value Appreciation/
Settle Date To Be Delivered As Of October 31, 1999 To Be Received As Of October 31, 1999 (Depreciation)
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------
November 2, 1999 40,403 $ 42,468 42,343 $ 42,343 $(125)
Euro U.S. Dollar
November 3, 1999 69,436 72,984 72,721 72,721 (263)
Euro U.S. Dollar
November 3, 1999 33,759 33,759 49,625 33,738 (21)
U.S. Dollar Canadian Dollar
November 5, 1999 23,756 24,970 24,901 24,901 (69)
Euro U.S. Dollar
--------------------- --------------------- --------------
$ 174,181 $ 173,703 $(478)
--------------------- --------------------- --------------
</TABLE>
- --------------------------------------------------------------------------------
4. FINANCIAL HIGHLIGHTS: Selected per share historical data for each of the
portfolios was as follows:
<TABLE>
<CAPTION>
Class A
---------------------------------------------------
Year Ended October 31,
---------------------------------------------------
GLOBAL GROWTH PORTFOLIO 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
Net asset value, beginning of year...... $ 23.18 $ 23.92 $ 21.28 $ 18.24 $ 14.78
-------- -------- -------- -------- -------
Operations:
Investment loss - net................. (.17) (.12) (.07) (.06) (.09)
Net realized and unrealized gain
(loss) on investments and foreign
currency transactions............... 8.22 (.62) 2.71 3.10 3.55
-------- -------- -------- -------- -------
Total from operations................... 8.05 (.74) 2.64 3.04 3.46
-------- -------- -------- -------- -------
Net asset value, end of year............ $ 31.23 $ 23.18 $ 23.92 $ 21.28 $ 18.24
-------- -------- -------- -------- -------
Total return @.......................... 34.73% (3.09%) 12.41% 16.67% 23.41%
Net assets end of year (000s omitted)... $130,195 $110,772 $125,268 $107,607 $68,302
Ratio of expenses to average daily net
assets................................ 1.41% 1.42% 1.44% 1.51% 1.73%
Ratio of net investment income to
average daily net assets.............. (.60%) (.44%) (.29%) (.33%) (.55%)
Portfolio turnover rate................. 49% 29% 30% 18% 27%
</TABLE>
18
<PAGE>
- --------------------------------------------------------------------------------
4. FINANCIAL HIGHLIGHTS (continued):
<TABLE>
<CAPTION>
Class B
---------------------------------------------
Year Ended October 31,
---------------------------------------------
GLOBAL GROWTH PORTFOLIO 1999 1998 1997 1996 1995+
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------
Net asset value, beginning of year...... $ 22.54 $ 23.42 $ 20.98 $18.12 $14.60
------- ------- ------- ------ ------
Operations:
Investment loss - net................. (.63) (.26) (.27) (.24) (.09)
Net realized and unrealized gain
(loss) on investments and foreign
currency transactions............... 8.22 (.62) 2.71 3.10 3.61
------- ------- ------- ------ ------
Total from operations................... 7.59 (.88) 2.44 2.86 3.52
------- ------- ------- ------ ------
Net asset value, end of year............ $ 30.13 $ 22.54 $ 23.42 $20.98 $18.12
------- ------- ------- ------ ------
Total return @.......................... 33.67% (3.76%) 11.63% 15.78% 24.11%
Net assets end of year (000s omitted)... $14,766 $11,680 $11,446 $5,735 $ 991
Ratio of expenses to average daily net
assets................................ 2.16% 2.17% 2.19% 2.26% 2.48%*
Ratio of net investment income to
average daily net assets.............. (1.35%) (1.19%) (1.03%) (.99%) (1.42%)*
Portfolio turnover rate................. 49% 29% 30% 18% 27%
</TABLE>
<TABLE>
<CAPTION>
Class C
------------------------------------------
Year Ended October 31,
------------------------------------------
GLOBAL GROWTH PORTFOLIO 1999 1998 1997 1996 1995+
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------
Net asset value, beginning of year...... $22.55 $23.43 $21.00 $18.13 $14.60
------ ------ ------ ------ ------
Operations:
Investment loss - net................. (.58) (.26) (.28) (.23) (.09)
Net realized and unrealized gain
(loss) on investments and foreign
currency transactions............... 8.22 (.62) 2.71 3.10 3.62
------ ------ ------ ------ ------
Total from operations................... 7.64 (.88) 2.43 2.87 3.53
------ ------ ------ ------ ------
Net asset value, end of year............ $30.19 $22.55 $23.43 $21.00 $18.13
------ ------ ------ ------ ------
Total return @.......................... 33.88% (3.76%) 11.57% 15.83% 24.18%
Net assets end of year (000s omitted)... $5,375 $5,009 $4,664 $3,087 $ 434
Ratio of expenses to average daily net
assets................................ 2.04%(A) 2.17% 2.19% 2.26% 2.48%*
Ratio of net investment income to
average daily net assets.............. (1.23%)(A) (1.20%) (1.04%) (.99%) (1.55%)*
Portfolio turnover rate................. 49% 29% 30% 18% 27%
</TABLE>
<TABLE>
<CAPTION>
Class H
----------------------------------------------
Year Ended October 31,
----------------------------------------------
GLOBAL GROWTH PORTFOLIO 1999 1998 1997 1996 1995+
<S> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
Net asset value, beginning of year...... $ 22.54 $ 23.42 $ 20.99 $ 18.12 $14.60
------- ------- ------- ------- ------
Operations:
Investment loss - net................. (.62) (.26) (.28) (.23) (.09)
Net realized and unrealized gain
(loss) on investments and foreign
currency transactions............... 8.22 (.62) 2.71 3.10 3.61
------- ------- ------- ------- ------
Total from operations................... 7.60 (.88) 2.43 2.87 3.52
------- ------- ------- ------- ------
Net asset value, end of year............ $ 30.14 $ 22.54 $ 23.42 $ 20.99 $18.12
------- ------- ------- ------- ------
Total return @.......................... 33.72% (3.76%) 11.58% 15.84% 24.11%
Net assets end of year (000s omitted)... $22,023 $18,531 $18,690 $10,765 $2,141
Ratio of expenses to average daily net
assets................................ 2.16% 2.17% 2.19% 2.26% 2.48%*
Ratio of net investment income to
average daily net assets.............. (1.35%) (1.19%) (1.04%) (1.02%) (1.46%)*
Portfolio turnover rate................. 49% 29% 30% 18% 27%
</TABLE>
* Annualized.
@ 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.
(a) Advisers has waived expenses for 12b-1 fees charged in excess of
National Association of Securities Dealers limitations. For the year
ending October 31, 1999, had the waiver not been made, ratios of
expenses and net investment income to average daily net assets would
have been 2.16% and (1.35%) respectively, for Class C.
19
<PAGE>
FORTIS WORLDWIDE PORTFOLIOS, INC.
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
4. FINANCIAL HIGHLIGHTS (continued):
<TABLE>
<CAPTION>
Class A
-------------------
Year Ended
October 31,
-------------------
INTERNATIONAL EQUITY PORTFOLIO 1999 1998**
<S> <C> <C>
- --------------------------------------------------------------
Net asset value, beginning of period.... $ 10.36 $ 10.46
-------- --------
Operations:
Investment gain (loss) - net.......... -- .02
Net realized and unrealized gain
(loss) on
investments and foreign currency
transactions........................ 6.88 (.12)
-------- --------
Total from operations................... 6.88 (.10)
-------- --------
Distributions to shareholders:
From investment income - net.......... (.10) --
-------- --------
Net asset value, end of period.......... $ 17.14 $ 10.36
-------- --------
Total return @.......................... 66.90% (.96%)
Net assets end of period (000s
omitted).............................. $ 10,267 $ 3,362
Ratio of expenses to average daily net
assets (a)............................ 1.70% 1.70%*
Ratio of net investment income to
average daily net assets (a).......... (.18%) .57%*
Portfolio turnover rate................. 62% 43%
</TABLE>
<TABLE>
<CAPTION>
Class B
-----------------
Year Ended
October 31,
-----------------
INTERNATIONAL EQUITY PORTFOLIO 1999 1998**
<S> <C> <C>
- ------------------------------------------------------------
Net asset value, beginning of period.... $ 10.33 $ 10.45
------- -------
Operations:
Investment gain (loss) - net.......... (.13) --
Net realized and unrealized gain
(loss) on
investments and foreign currency
transactions........................ 6.88 (.12)
------- -------
Total from operations................... 6.75 (.12)
------- -------
Distributions to shareholders:
From investment income - net.......... (.03) --
------- -------
Net asset value, end of period.......... $ 17.05 $ 10.33
------- -------
Total return @.......................... 65.56% (1.15%)
Net assets end of period (000s
omitted).............................. $ 959 $ 143
Ratio of expenses to average daily net
assets (a)............................ 2.45% 2.45%*
Ratio of net investment income to
average daily net assets (a).......... (.93%) (.18%)*
Portfolio turnover rate................. 62% 43%
</TABLE>
* Annualized.
** For the period March 2, 1998 (date shares first offered to the public)
to October 31, 1998.
@ These are the Funds total returns during the period, including
reinvestment of all dividend and capital gains distributions without
adjustments for sales charge.
(a) Advisers has voluntarily undertaken to limit annual expenses for
International Equity (exclusive of interest, taxes, brokerage
commission and non-recurring extraordinary charges and expenses) to
1.70% of the average daily net assets for Class A and 2.45% for
Classes B, C and H. For the year ended October 31, 1999, had the
waiver and reimbursement of expenses not been in effect, the ratios of
expenses and net investment income to average daily net assets would
have been 2.44% and (.92%) for Class A and 3.19% and (1.67%) for
Class B. For the period ended October 31, 1998, the ratios of expenses
and net investment income to average daily net assets would have been
3.70% and (1.43%) for Class A and 4.45% and a (2.18%) for Class B.
20
<PAGE>
- --------------------------------------------------------------------------------
4. FINANCIAL HIGHLIGHTS (continued):
<TABLE>
<CAPTION>
Class C
---------------
Year Ended
October 31,
---------------
INTERNATIONAL EQUITY PORTFOLIO 1999 1998**
<S> <C> <C>
- ----------------------------------------------------------
Net asset value, beginning of period.... $10.32 $10.45
------ ------
Operations:
Investment gain (loss) - net.......... (.12) (.01)
Net realized and unrealized gain
(loss) on
investments and foreign currency
transactions........................ 6.88 (.12)
------ ------
Total from operations................... 6.76 (.13)
------ ------
Distributions to shareholders:
From investment income - net.......... (.03) --
------ ------
Net asset value, end of period.......... $17.05 $10.32
------ ------
Total return @.......................... 65.72% (1.24%)
Net assets end of period (000s
omitted).............................. $ 597 $ 31
Ratio of expenses to average daily net
assets (a)............................ 2.45% 2.45%*
Ratio of net investment income to
average daily net assets (a).......... (.93%) (.18%)*
Portfolio turnover rate................. 62% 43%
</TABLE>
<TABLE>
<CAPTION>
Class H
-----------------
Year Ended
October 31,
-----------------
INTERNATIONAL EQUITY PORTFOLIO 1999 1998**
<S> <C> <C>
- ------------------------------------------------------------
Net asset value, beginning of period.... $ 10.32 $ 10.45
------- -------
Operations:
Investment gain (loss) - net.......... (.14) (.01)
Net realized and unrealized gain
(loss) on
investments and foreign currency
transactions........................ 6.88 (.12)
------- -------
Total from operations................... 6.74 (.13)
------- -------
Distributions to shareholders:
From investment income - net.......... (.03) --
------- -------
Net asset value, end of period.......... $ 17.03 $ 10.32
------- -------
Total return @.......................... 65.53% (1.24%)
Net assets end of period (000s
omitted).............................. $ 1,649 $ 267
Ratio of expenses to average daily net
assets (a)............................ 2.45% 2.45%*
Ratio of net investment income to
average daily net assets (a).......... (.93%) (.18%)*
Portfolio turnover rate................. 62% 43%
</TABLE>
* Annualized.
** For the period March 2, 1998 (date shares first offered to the public)
to October 31, 1998.
@ These are the Funds total returns during the period, including
reinvestment of all dividend and capital gains distributions without
adjustments for sales charge.
(a) Advisers has voluntarily undertaken to limit annual expenses for
International Equity (exclusive of interest, taxes, brokerage
commission and non-recurring extraordinary charges and expenses) to
1.70% of the average daily net assets for Class A and 2.45% for
Classes B, C and H. For the year ended October 31, 1999, had the
waiver and reimbursement of expenses not been in effect, the ratios of
expenses and net investment income to average daily net assets would
have and 3.19% and (1.67%) for Class C and 3.19% and (1.67%) for Class
H. For the period ended October 31, 1998, the ratios of expenses and
net investment income to average daily net assets would have been
4.45% and (2.18%) for Class C, and 4.45% and (2.18)% for Class H.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY PORTFOLIO FEDERAL TAX (UNAUDITED)
Ordinary Income Per Share
Record Date Class A Class B Class C Class H
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
December 18, 1998.............................. 0.097 0.034 0.034 0.034
------- ------- ------- -------
Total Distributions............................ 0.097 0.034 0.034 0.034
------- ------- ------- -------
</TABLE>
21
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders
Fortis Worldwide Portfolios, Inc.:
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments in securities, of Global Growth Portfolio and
International Equity Portfolio (portfolios within Fortis Worldwide Portfolios,
Inc.) as of October 31, 1999 and the related statements of operations for the
year then ended, and the statements of changes in net assets and the financial
highlights for each of the periods presented. 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, sold but not delivered
and securities on loan, 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 and International Equity portfolio as of October
31, 1999 and the results of their operations , the changes in their net assets
and the financial highlights for the periods presented, in conformity with
generally accepted accounting principles.
KPMG LLP
Minneapolis, Minnesota
December 3, 1999
22
<PAGE>
DIRECTORS AND OFFICERS
<TABLE>
<S> <C> <C>
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 PRESIDENT, CRANBROOK EDUCATION COMMUNITY. 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. PRESIDENT - FORTIS FINANCIAL GROUP,
FORTIS BENEFITS INSURANCE COMPANY AND SENIOR VICE
PRESIDENT, FORTIS 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 Schenker 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.
</TABLE>
OFFICERS
Dean C. Kopperud
PRESIDENT AND DIRECTOR
Robert W. Beltz, Jr.
VICE PRESIDENT
James S. Byrd
VICE PRESIDENT
Peggy L. Ettestad
VICE PRESIDENT
Tamara L. Fagely
VICE PRESIDENT AND TREASURER
Howard G. Hudson
VICE PRESIDENT
Dickson W. Lewis
VICE PRESIDENT
Lucinda S. Mezey
VICE PRESIDENT
David A. Peterson
VICE PRESIDENT
Scott R. Plummer
VICE PRESIDENT
Rhonda J. Schwartz
VICE PRESIDENT
Melinda S. Urion
VICE PRESIDENT
Gary N. Yalen
VICE PRESIDENT
Michael J. Radmer
SECRETARY
<TABLE>
<S> <C>
INVESTMENT MANAGER, REGISTRAR AND Fortis Advisers, Inc.
TRANSFER AGENT BOX 64284, ST. PAUL, MINNESOTA 55164
PRINCIPAL UNDERWRITER Fortis Investors, Inc.
BOX 64284, ST. PAUL, MINNESOTA 55164
CUSTODIAN U.S. Bank National Association
MINNEAPOLIS, MINNESOTA
GENERAL COUNSEL Dorsey & Whitney LLP
MINNEAPOLIS, MINNESOTA
INDEPENDENT AUDITORS KPMG LLP
MINNEAPOLIS, MINNESOTA
</TABLE>
The use of this material is authorized only when preceded or accompanied by a
prospectus.
23
<PAGE>
FORTIS FINANCIAL GROUP'S OTHER PRODUCTS AND SERVICES
<TABLE>
<S> <C> <C>
MUTUAL FUNDS/PORTFOLIOS Fortis Bond Funds MONEY FUND
CONVENIENT ACCESS TO A BROAD U.S. GOVERNMENT SECURITIES FUND
RANGE OF SECURITIES TAX-FREE NATIONAL PORTFOLIO
TAX-FREE MINNESOTA PORTFOLIO
STRATEGIC INCOME FUND
HIGH YIELD PORTFOLIO
Fortis Stock Funds ASSET ALLOCATION PORTFOLIO
VALUE FUND
GROWTH & INCOME FUND
CAPITAL FUND
GLOBAL GROWTH PORTFOLIO
GROWTH FUND
INTERNATIONAL EQUITY PORTFOLIO
CAPITAL APPRECIATION PORTFOLIO
FIXED AND VARIABLE ANNUITIES Fortis Opportunity Fixed FIXED ACCOUNT
TAX-DEFERRED INVESTING & Variable Annuity MONEY MARKET SUBACCOUNT
Masters Variable Annuity U.S. GOVERNMENT SECURITIES SUBACCOUNT
DIVERSIFIED INCOME SUBACCOUNT
Empower Variable GLOBAL BOND SUBACCOUNT
Annuity HIGH YIELD SUBACCOUNT
GLOBAL ASSET ALLOCATION SUBACCOUNT
Income Preferred ASSET ALLOCATION SUBACCOUNT
Variable Annuity VALUE SUBACCOUNT
GROWTH & INCOME SUBACCOUNT
S&P 500 INDEX SUBACCOUNT
BLUE CHIP STOCK SUBACCOUNT
INTERNATIONAL STOCK SUBACCOUNT
MID CAP STOCK SUBACCOUNT
SMALL CAP VALUE SUBACCOUNT
GLOBAL GROWTH SUBACCOUNT
LARGE CAP GROWTH SUBACCOUNT
GROWTH 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 AND Variable Universal Life MONEY MARKET SUBACCOUNT
TAX-DEFERRED INVESTMENT Insurance U.S. GOVERNMENT SECURITIES SUBACCOUNT
OPPORTUNITY DIVERSIFIED INCOME SUBACCOUNT
GLOBAL BOND SUBACCOUNT
HIGH YIELD SUBACCOUNT
GLOBAL ASSET ALLOCATION SUBACCOUNT
ASSET ALLOCATION SUBACCOUNT
VALUE SUBACCOUNT
GROWTH & INCOME SUBACCOUNT
S&P 500 INDEX SUBACCOUNT
BLUE CHIP STOCK SUBACCOUNT
INTERNATIONAL STOCK SUBACCOUNT
MID CAP STOCK SUBACCOUNT
SMALL CAP VALUE SUBACCOUNT
GLOBAL GROWTH SUBACCOUNT
LARGE CAP GROWTH SUBACCOUNT
GROWTH STOCK SUBACCOUNT
AGGRESSIVE GROWTH SUBACCOUNT
Adaptable Life
Universal Life
</TABLE>
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 FORTIS 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.
24
<PAGE>
[LOGO]
FORTIS
Solid partners, flexible solutions-SM-
- --------------------------------------------------------------------------------
FORTIS MEANS STEADFAST
Fortis means "steadfast" in Latin. The worldwide Fortis family of companies
lives up to the name, and has each day since the 1800s, with flexible
solutions tailored to our customers' individual needs. We deliver the
stability you require today ... and tomorrow. You can count on it.
Fortis Financial Group offers annuities, life insurance and mutual funds
through its broker/dealer Fortis Investors, Inc. We're part of Fortis, Inc.,
a financial services company that provides speciality insurance and
investment products to individuals, businesses, associations and other
financial services organizations throughout the United States.
Fortis, Inc. is part of the international Fortis group, which operates in the
fields of insurance, banking and investments. Fortis' listed companies are
Fortis (B) of Belgium and Fortis (NL) of the Netherlands.
Fortis: Steadfast for YOU!
FORTIS FINANCIAL GROUP
Fund management offered through
Fortis Advisors, Inc. since 1949
Securities offered through Fortis
Investors, Inc., member NASD, SIPC
Insurance products offered through
Fortis Benefits Insurance Company &
Fortis Insurance Company
P.O. Box 64284, St. Paul, MN 55164-0284
Telephone (800) 800-2000
http://www.ffg.us.fortis.com
- --------------------------------------------------------------------------------
FORTIS FINANCIAL GROUP ---------------
P.O. Box 64284 Bulk Rate
St. Paul, MN 55164-0284 U.S. Postage
PAID
Permit No. 3794
Fortis international stock funds Minneapolis, MN
---------------
[LOGO] Printed on recycled paper with
40% preconsumer waste and 10%
post consumer waste. Please recycle.
The Fortis brandmark and Fortis-SM- are servicemarks
of Fortis (B) and Fortis (NL).
96156-C- Fortis, Inc. 12/99
