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FORTIS
Solid partners, flexible solutions-SM-
Global reach, world-class investment potentional
Fortis international stock
funds annual report
October 31, 2000
FORTIS FINANCIAL GROUP
[GRAPHIC]
Fortis International Equity Fund
Fortis Global Growth Fund
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FORTIS WORLDWIDE PORTFOLIOS, INC. ANNUAL REPORT
CONTENTS
LETTER TO SHAREHOLDERS 2
SCHEDULES OF INVESTMENTS
GLOBAL GROWTH PORTFOLIO 7
INTERNATIONAL EQUITY PORTFOLIO 10
STATEMENTS OF ASSETS AND LIABILITIES 14
STATEMENTS OF OPERATIONS 15
STATEMENTS OF CHANGES IN NET ASSETS
GLOBAL GROWTH PORTFOLIO 16
INTERNATIONAL EQUITY PORTFOLIO 17
NOTES TO FINANCIAL STATEMENTS 18
INDEPENDENT AUDITORS' REPORT 25
DIRECTORS AND OFFICERS 27
OTHER PRODUCTS AND SERVICES 28
- TOLL-FREE PERSONAL ASSISTANCE
- Shareholder Services
- (800) 800-2000, Ext. 3012
- 7:30 a.m. to 7:00 p.m. CST, Monday thru Friday
- TOLL-FREE INFORMATION LINE
- For daily account balances,
transaction activity or net asset
value information
- (800) 800-2000, Ext. 4344
- 24 hours a day
FOR MORE INFORMATION ABOUT FORTIS FINANCIAL GROUP'S FAMILY OF PRODUCTS, CALL
YOUR INVESTMENT REPRESENTATIVE OR THE HOME OFFICE AT (800) 800-2000.
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 the funds' performance during the past twelve months,
refer to the Highlights box below. The letter from the portfolio managers and
president provides a more detailed analysis of the funds and financial markets.
The charts following the letter are useful because they provide more information
about your investments. The top holdings charts show the types of securities in
which the funds invest, and the pie charts show a breakdown of each fund's
assets by country. The portfolio changes show the investment decisions your fund
managers have made over the period in response to changing market conditions.
The performance charts graphically compare each fund's total return performance
with a selected investment index. Remember, however, that an index may reflect
the performance of securities the fund may not hold. Also, the index does not
deduct sales charges, investment advisory fees and other fund expenses, whereas
your fund does. Individuals cannot buy an unmanaged index fund without incurring
some charges and expenses.
This report is just one of several tools you can use to learn more about your
investment in the Fortis Family of Mutual Funds. Your investment representative,
who understands your personal financial situation, can best explain the features
of your investment and how it's designed to help you meet your financial goals.
HIGHLIGHTS
FOR THE YEAR ENDED OCTOBER 31, 2000
<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.......................... $ 31.23 $ 30.13 $ 30.19 $ 30.14
End of year................................ $ 32.51 $ 31.01 $ 31.12 $ 31.01
TOTAL RETURN* 15.44% 14.60% 14.73% 14.56%
DISTRIBUTIONS PER SHARE:
From net realized gains on investments..... $3.6100 $3.6100 $3.6100 $3.6100
INTERNATIONAL EQUITY PORTFOLIO
NET ASSET VALUE PER SHARE:
Beginning of year.......................... $ 17.14 $ 17.05 $ 17.05 $ 17.03
End of year................................ $ 19.60 $ 19.38 $ 19.38 $ 19.36
TOTAL RETURN* 15.20% 14.34% 14.34% 14.36%
DISTRIBUTIONS PER SHARE:
From net investment income................. $0.0315 -- -- --
From net realized gains on investments..... $0.1342 $0.1342 $0.1342 $0.1342
</TABLE>
* These are the fund's total returns during the period, including
reinvestment of all dividend and capital gains distributions without
adjustments for sales charge.
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[PHOTO]
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 invests in growth companies anywhere in the world
including the United States. The Fortis International Portfolio focuses
primarily on investments in foreign equity markets.
PERFORMANCE
During the twelve-month period ended October 31, 2000, the Fortis Global Growth
Portfolio had a total return of 15.44% for class A shares before sales charge,
which compared to a total return of 1.39% for the Morgan Stanley Capital
International World Index. The Fortis International Equity Portfolio over the
same period had a total return of 15.20% for class A shares before sales charge,
which compared to a total return of -2.66% for the Morgan Stanley Capital
International EAFE Index (Europe, Australia, Far East). The EAFE Index is the
traditional representation of non-North American equity markets. The performance
of the funds was influenced by numerous factors over the past year. The most
significant being an unprecedented "bull phase" for global growth-oriented
equities which occurred during the October 1999 through March 2000 period.
Companies involved in industry sectors such as technology, telecommunications
and media rose sharply in all major equity markets worldwide. Since April of
2000, the global equity markets for high growth companies have experienced a
sharp valuation correction. Investor concerns over increased interest rates,
rising energy prices, slowing economic growth, and slowing earnings gains have
resulted in steep declines for many growth-oriented global equities. Over the
past year, performance of international holdings has also been affected by the
appreciation of the U.S. dollar versus foreign currencies.
FORTIS GLOBAL GROWTH PORTFOLIO
On October 31, 2000, the Fortis Global Growth Portfolio was well diversified
with 92 individual holdings. As a percentage of total net assets, foreign
holdings represented 45.7%, while holdings in the United States represented
54.3%. Our long-term goal is to invest in the world's best positioned and
managed growth companies regardless of where they are located. Technology
related industries continue to be the most important growth area in the global
economy. Over the past year, we have focused our investments in companies
involved in areas such as biotechnology, consumer electronics, wireless
communications, and suppliers to the telecommunications industry. We have also
focused on the energy market with a significant exposure to the growing areas of
natural gas production and petroleum services. Our consumer holdings involve
rapidly growing companies in the restaurant area, such as Starbucks and
Cheesecake Factory, and retailers such as RadioShack and Bed, Bath and Beyond.
The fund's holdings in the Japanese stock market (14.21% of total net assets)
have underperformed during the past year. A majority of our holdings in Japan
are companies involved in the areas of technology and consumer electronics,
which are expected to demonstrate well above average growth in the coming years.
Canon and Sony are examples of Japanese based companies with strong global
brands in the consumer electronics area. The portfolio is diversified among
various growth segments globally. As a percentage of total net assets, consumer
related areas represented 14.7%, energy 11.7%, health care 11.2%, finance 6.4%,
technology 35.7% and telecommunications 7.6%.
2
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FORTIS INTERNATIONAL EQUITY PORTFOLIO
The Fortis International Equity Portfolio at the end of October
2000 was invested in 26 nations. Europe accounted for 43.7% of
total net assets, Japan 16.4%, United Kingdom 9.2%, and emerging
markets 10.8%. Our goal is to provide investors with an
international fund that is highly diversified in all major
economic and investment segments. The fund's primary focus is on
traditional blue chip holdings, but does participate in other
segments such as growth-oriented companies and certain
restructuring situations. This fund has had an above average
exposure to the high growth segments such as telecommunications
and technology since its inception. Over the past several months,
these areas have experienced a sharp correction, however, their
longer-term prospects remain favorable. Since the Fortis
International Equity Portfolio is primarily invested in companies
in foreign markets, it is exposed to the element of foreign
exchange. The extraordinary strength of the United States dollar
versus the Euro has had a negative impact on performance over the
past twelve months. A weakened Euro is a significant issue as it
impacts trade, inflation trends, monetary policy and capital
flows among global regions. We anticipate that the Euro will
stabilize in the months ahead. Overall, the portfolio remains
highly diversified among industry categories with consumer
related areas representing 6.6% of total net assets, energy
12.6%, finance 12.2%, health care 9.9%, technology 24.7% and
telecommunications 10.0%.
GLOBAL ECONOMY
The outlook for the global economy has been clouded in recent
months by higher energy prices and higher short-term global
interest rates. Over the past year, the major economies of the
world have demonstrated a synchronized recovery. The Federal
Reserve Board has raised interest rates six times since June of
1999 in an attempt to slow economic growth and keep inflation at
acceptable levels. Recent indicators point to a slowing trend in
GDP growth in the U.S., which will likely impact the outlook for
other economies around the world. The European economy has
recovered in recent months, however, it should also be impacted
by a weakened currency, higher interest rates, and higher energy
costs. The Japanese economy has recently demonstrated some
pick-up in GDP growth. However, significant structural problems
in the economy such as a weak banking system, and significant
levels of government debt remain. Corporate earnings in Japan
have rebounded sharply from extremely depressed levels. A growing
global economy is necessary to support many of the Japanese
export oriented companies, which play a major role in the
Japanese economy. The global economic outlook is for moderate
growth, which should keep inflation at reasonable levels and
reduce the pressures on the world's Central Banks to raise
interest rates further. This should help stabilize equity markets
and focus investors on growth-oriented companies, which typically
prosper during periods of low inflation and moderate economic
growth. Slowing economic growth in 2001 could influence the
world's Central Banks to reduce interest rates. This could be a
catalyst for a return to a more favorable outlook for global
equities.
GLOBAL EQUITY MARKETS
Due to the recent correction in the global equity markets, many
growth stocks today appear more attractive on a valuation basis
than they have for some time. Concerns over a synchronized global
recovery, which would lead to high inflation, have been replaced
by concerns of a slowing economy. The slowing global economy will
likely result in numerous earnings disappointments for individual
companies. On a longer-term basis, many of the world's growth
segments continue to have favorable outlooks. This, however, will
not change the volatile characteristic of the equity markets, as
valuation levels still remain high on a historic basis. Our
strategy is to take advantage of the market volatility by adding
to our holdings during down phases of the equity
3
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market. We anticipate a "trading oriented" market for equities
over the next year as uncertainty regarding the economy and
earnings growth will likely persist. The longer-term outlook for
the overseas economies remains favorable due primarily to the
potential for further economic and business reforms. Lower tax
rates, enhanced pension plans for individuals and corporate
restructurings should lead to a favorable environment for
long-term equity investors. The emerging regions of Asia and
Latin America have been significantly impacted by higher energy
prices, slowing developed economies, higher interest rates and
increased spreads for debt instruments. These markets will
rebound from depressed levels once the Central Banks begin to
reduce interest rates and improve global liquidity.
LONG TERM OUTLOOK
The longer-term outlook for investing in global equities remains
favorable. The global economy should grow at a moderate pace over
the next several years, which will help contain the risk of
higher inflation. This will stabilize valuations for growth
stocks at an acceptable level and create opportunities for
longer-term investors. Our focus is on the long-term and we are
positioned to take advantage of an improving global market going
forward.
Thank you for your investment in the Fortis Global Growth and
Fortis International Equity Portfolios.
Sincerely,
<TABLE>
<S> <C> <C>
/s/ Dean C. Kopperud /s/ Lucinda S. Mezey /s/ James S. Byrd
Dean Kopperud Cindy Mezey Jim Byrd
President Vice President, Equities Vice President
</TABLE>
4
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PORTFOLIO DIVERSIFICATION BY COUNTRY AS OF 10/31/2000
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
United States 50.2%
Japan 14.2%
Other 9.2%
United Kingdom 7.0%
Cash Equivalents/Receivables 4.1%
France 2.5%
Israel 2.4%
Spain 2.4%
Sweden 2.2%
Netherlands 2.1%
Italy 1.9%
Finland 1.8%
</TABLE>
GLOBAL GROWTH PORTFOLIO
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>
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 29,671
00 31,781 34,252
</TABLE>
GLOBAL GROWTH PORTFOLIO CLASS A AVERAGE ANNUAL TOTAL RETURN
<TABLE>
<CAPTION>
1 YEAR 5 YEAR SINCE JULY 8, 1991@
<S> <C> <C> <C>
WITH SALES CHARGE* +9.95% +13.49% +14.13%
WITHOUT SALES CHARGE** +15.44% +14.60% +14.73%
</TABLE>
Annual period ended October 31, 2000
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.
TOP 10 EQUITY HOLDINGS AS OF 10/31/2000
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
-------------------------------------------------------------------
<C> <S> <C>
1. PE Corp. -- PE Biosystems Group (United States) 5.7%
2. Vodafone Group plc (United Kingdom) 4.2%
3. Cheesecake Factory, Inc. (United States) 3.5%
4. Xilinx, Inc. (United States) 2.9%
5. Cisco Systems, Inc. (United States) 2.8%
6. EOG Resources, Inc. (United States) 2.4%
7. Bed Bath & Beyond, Inc. (United States) 2.3%
8. Ericsson (L.M.) Telephone Co. Class B ADR (Sweden) 2.2%
9. Teva Pharmaceutical Industries Ltd. ADR (Israel) 2.1%
10. Tellabs, Inc. (United States) 2.0%
</TABLE>
CLASS B, C AND H AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
<CAPTION>
Since
1 Year 5 Year Inception+
--------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Class B shares# +14.60% +13.76% +15.53%
Class B shares## +11.00% +13.55% +15.46%
Class C shares# +14.73% +13.82% +15.59%
Class C shares## +13.73% +13.82% +15.59%
Class H shares# +14.56% +13.76% +15.53%
Class H shares## +10.96% +13.55% +15.46%
</TABLE>
Past performance is not indicative of future performance. Total returns include
reinvestment of all dividend and capital gains distributions. The performance of
the separate classes (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.
# Without CDSC.
## With CDSC. Assumes redemption on October 31, 2000.
+ Since November 14, 1994 -- Date shares were first offered to the public.
TEN LARGEST STOCK PORTFOLIO CHANGES
FOR THE PERIOD ENDED 10/31/2000
ADDITIONS: ELIMINATIONS:
AstraZeneca Group plc Citrix Systems, Inc.
Aurora Biosciences Corp. DSP Communications, Inc.
Chubb Corp.(with rights) East Japan Railway Co.
Cypress Semiconductor Corp. Fuji Bank Ltd.
Hutchison Whampoa Ltd. Global TeleSystems
LTX Corp. Group, Inc.
Nestle S.A. Hikari Tsushin, Inc.
PeopleSoft, Inc. Orange plc
Riunione Adriatica di Sicurta Sanofi-Synthelabo S.A.
S.p.A. Synopsys, Inc.
Starbucks Corp. Univision
Communications, Inc. Class A
5
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PORTFOLIO DIVERSIFICATION BY COUNTRY AS OF 10/31/2000
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 19.0%
Japan 16.4%
France 9.6%
United Kingdom 9.2%
Cash Equivalents/Receivables 8.9%
Netherlands 8.7%
Germany 6.4%
United States 6.0%
Italy 5.7%
Spain 4.1%
Hong Kong 3.2%
Israel 2.8%
</TABLE>
INTERNATIONAL EQUITY PORTFOLIO
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
00 $11,873 $18,138
</TABLE>
INTERNATIONAL EQUITY PORTFOLIO CLASS A AVERAGE ANNUAL TOTAL RETURN
<TABLE>
<CAPTION>
SINCE
<S> <C> <C>
1 YEAR MARCH 2, 1998@
With Sales Charge* +9.73% +24.99%
Without Sales Charge** +15.20% +27.29%
</TABLE>
Annual period ended October 31, 2000
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.
TOP 10 EQUITY HOLDINGS AS OF 10/31/2000
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
-------------------------------------------------------------------
<C> <S> <C>
1. Enron Corp. (United States) 2.3%
2. Schlumberger Ltd.(United States) 1.7%
3. China Unicom Ltd. ADR (China) 1.6%
4. Canon, Inc. ADR (Japan) 1.5%
5. HSBC Holdings plc (United Kingdom) 1.4%
6. ARM Holdings plc (United Kingdom) 1.4%
7. Riverdeep Group plc ADR (Ireland) 1.4%
8. Aventis S.A. ADR (France) 1.3%
9. Royal Bank of Scotland Group plc (United Kingdom) 1.3%
10. Broken Hill Proprietary Company Ltd. ADR
(Australia) 1.3%
</TABLE>
CLASS B, C AND H AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
<CAPTION>
Since
1 Year Inception+
---------------------------------------------------------------------------
<S> <C> <C>
Class B shares# +14.34% +26.46%
Class B shares## +10.74% +25.78%
Class C shares# +14.34% +26.46%
Class C shares## +13.34% +26.46%
Class H shares# +14.36% +26.41%
Class H shares## +10.76% +25.73%
</TABLE>
Past performance is not indicative of future performance. Total returns include
reinvestment of all dividend and capital gains distributions. The performance of
the separate classes (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.
# Without CDSC.
## With CDSC. Assumes redemption on October 31, 2000.
+ Since March 2, 1998 -- Date shares were first offered to the public.
TEN LARGEST STOCK PORTFOLIO CHANGES
FOR THE PERIOD ENDED 10/31/2000
ADDITIONS: ELIMINATIONS:
AstraZeneca Group plc British Telecommunications plc
China Unicom Ltd. ADR ADR
Computer & Technologies Domtar, Inc.
Holdings Ltd. Eircom plc
IHC Caland N.V. Equant N.V.
Nestle S.A. Global TeleSystems
Nycomed Amersham plc Group, Inc.
Promotora de Informaciones Hikari Tsushin, Inc.
S.A. Italcementi S.p.A.
Riverdeep Group plc ADR Mondadori (Arnoldo) Editore
Schlumberger Ltd. S.p.A.
Telecom Italia Mobile S.p.A. StarMedia Network, Inc.
Taiwan Semiconductor
Manufacturing Co. Ltd. ADR
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FORTIS WORLDWIDE PORTFOLIOS, INC.
GLOBAL GROWTH PORTFOLIO
Schedule of Investments
October 31, 2000
COMMON STOCKS-95.03%
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<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
---------- ----------- ------------
<C> <S> <C> <C>
AUSTRALIA-0.88%
180,000 Broken Hill Proprietary Co. Ltd. -- PETROLEUM AND COAL -- OIL AND GAS
EXTRACTION............................................................... $2,004,217 $ 1,744,261
----------- ------------
BELGIUM-0.46%
6,150 Dexia -- FINANCE -- DEPOSITORY CREDIT BANKING.............................. 753,423 923,176
----------- ------------
CHINA-0.15%
15,000 China Unicom Ltd. ADR (a) -- INFORMATION -- OTHER TELECOMMUNICATIONS....... 299,850 307,500
----------- ------------
FINLAND-1.84%
89,000 Nokia Oyj -- COMPUTER MANUFACTURING -- COMMUNICATIONS EQUIPMENT............ 114,656 3,657,910
----------- ------------
FRANCE-2.46%
27,500 Aventis (Warrants) ADW (a) -- CHEMICAL MANUFACTURING -- OTHER CHEMICAL AND
PREPARATION.............................................................. 93,872 299,062
16,000 Axa -- FINANCE -- INSURANCE CARRIERS....................................... 2,132,803 2,115,609
18,960 Carrefour S.A. -- RETAIL -- GROCERY STORES................................. 1,051,925 1,271,176
8,600 Groupe Danone -- FOOD MANUFACTURING -- OTHER............................... 782,321 1,201,286
----------- ------------
4,060,921 4,887,133
----------- ------------
GERMANY-0.56%
20,000 Schering AG -- HEALTH CARE -- PHARMACEUTICAL AND MEDICINE MANUFACTURING.... 1,235,208 1,110,356
----------- ------------
HONG KONG-1.75%
225,000 China Mobile (Hong Kong) Ltd. (a) -- INFORMATION -- TELECOMMUNICATIONS
CARRIERS................................................................. 1,385,148 1,449,686
163,900 Hutchison Whampoa Ltd. -- REAL ESTATE, RENTAL AND LEASING -- ACTIVITIES
RELATED TO REAL ESTATE................................................... 2,273,764 2,033,225
----------- ------------
3,658,912 3,482,911
----------- ------------
ISRAEL-2.40%
85,000 BATM Advanced Communications Ltd. -- ELECTRICAL EQUIPMENT
MANUFACTURING -- COMPONENT OTHER......................................... 604,144 629,485
70,000 Teva Pharmaceutical Industries Ltd. ADR -- HEALTH CARE -- PHARMACEUTICAL
AND MEDICINE MANUFACTURING............................................... 1,417,687 4,138,750
----------- ------------
2,021,831 4,768,235
----------- ------------
ITALY-1.94%
146,000 Riunione Adriatica di Sicurta S.p.A. -- FINANCE -- INSURANCE CARRIERS...... 1,825,245 1,914,406
168,200 Telecom Italia S.p.A. -- INFORMATION -- WIRED TELECOMMUNICATIONS
CARRIERS................................................................. 1,125,574 1,946,030
----------- ------------
2,950,819 3,860,436
----------- ------------
JAPAN-14.21%
21,000 Advantest Corp. -- COMPUTER MANUFACTURING -- SEMICONDUCTOR, ELECTRONIC
COMPONENT................................................................ 1,430,224 2,736,789
21,960 Aiful Corp. -- FINANCE -- OTHER FINANCIAL INVESTMENT ACTIVITIES............ 846,791 1,729,609
73,000 Canon, Inc. ADR -- COMPUTER MANUFACTURING -- SEMICONDUCTOR, ELECTRONIC
COMPONENT................................................................ 1,473,574 2,961,062
41,000 Fujitsu Ltd. -- COMPUTER MANUFACTURING -- SEMICONDUCTOR, ELECTRONIC
COMPONENT................................................................ 633,135 729,957
6,000 Fujitsu Support and Service, Inc. -- INFORMATION -- OTHER INFORMATION
SERVICES (E)............................................................. 93,974 728,638
15,900 Murata Manufacturing Co. Ltd. -- ELECTRICAL EQUIPMENT
MANUFACTURING -- COMPONENT OTHER......................................... 1,034,725 1,901,768
95,000 NEC Corp. -- COMPUTER MANUFACTURING -- COMPUTER AND PERIPHERAL EQUIPMENT... 1,285,522 1,809,690
13,400 Nintendo Co. Ltd. -- TOY MANUFACTURING..................................... 1,609,675 2,215,130
217 Nippon Telegraph and Telephone Corp. -- INFORMATION -- WIRED
TELECOMMUNICATIONS CARRIERS.............................................. 1,832,201 1,973,450
14,400 Orix Corp. -- REAL ESTATE, RENTAL AND LEASING -- ACTIVITIES RELATED TO REAL
ESTATE................................................................... 1,106,409 1,510,028
30,000 Sony Corp. -- COMPUTER MANUFACTURING -- COMMUNICATIONS EQUIPMENT........... 973,223 2,395,824
63,180 Sunkus & Associates, Inc. -- RETAIL -- GROCERY STORES...................... 2,024,338 1,880,529
19,000 Takeda Chemical Industries Ltd. -- CHEMICAL MANUFACTURING -- OTHER CHEMICAL
AND PREPARATION.......................................................... 770,866 1,251,122
20,200 Tokyo Electron Ltd. -- COMPUTER MANUFACTURING -- SEMICONDUCTOR, ELECTRONIC
COMPONENT................................................................ 1,062,208 1,579,888
30,000 Trend Micro, Inc. (a) -- INFORMATION -- OTHER INFORMATION SERVICES......... 1,545,335 2,829,929
----------- ------------
17,722,200 28,233,413
----------- ------------
MEXICO-0.94%
34,500 Grupo Televisa S.A. GDR (a) -- ENTERTAINMENT -- RADIO AND TELEVISION
BROADCASTING............................................................. 1,098,100 1,867,312
----------- ------------
NETHERLANDS-2.09%
18,486 IHC Caland N.V. -- PETROLEUM AND COAL -- MINING SUPPORT ACTIVITIES......... 386,766 814,774
21,000 KPNQwest N.V. (a) -- INFORMATION -- INTERNET SERVICE PROVIDERS AND WEB
SEARCH PORTALS........................................................... 437,850 508,178
60,000 VNU N.V. -- ENTERTAINMENT -- NEWSPAPER, PERIODICAL, BOOK AND DATABASE
PUBLISHERS............................................................... 1,395,594 2,822,508
----------- ------------
2,220,210 4,145,460
----------- ------------
</TABLE>
7
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FORTIS WORLDWIDE PORTFOLIOS, INC.
GLOBAL GROWTH PORTFOLIO (CONTINUED)
Schedule of Investments
October 31, 2000
COMMON STOCKS-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
---------- ----------- ------------
<C> <S> <C> <C>
NORWAY-1.13%
103,000 Petroleum Geo-Services ADR (a) -- PETROLEUM AND COAL -- MINING SUPPORT
ACTIVITIES............................................................... $1,553,552 $ 1,409,812
70,000 Stolt Comex Seaway S.A. (a) -- PETROLEUM AND COAL -- OIL AND GAS
EXTRACTION............................................................... 493,694 835,625
----------- ------------
2,047,246 2,245,437
----------- ------------
SOUTH AFRICA-0.28%
80,000 Sappi Ltd. -- PAPER, PULP AND PAPERBOARD MILLS............................. 667,645 548,242
----------- ------------
SOUTH KOREA-0.37%
61,000 Korea Electric Power Corp. ADR -- UTILITIES -- ELECTRIC GENERATION,
TRANSMISSION AND DISTRIBUTION............................................ 816,362 743,437
----------- ------------
SPAIN-2.39%
65,000 Repsol-YPF S.A. -- PETROLEUM AND COAL -- OIL AND GAS EXTRACTION............ 1,030,404 1,031,359
64,296 Telefonica S.A. ADR -- INFORMATION -- TELECOMMUNICATIONS RESELLERS......... 1,381,702 3,725,149
----------- ------------
2,412,106 4,756,508
----------- ------------
SWEDEN-2.17%
310,000 Ericsson (L.M.) Telephone Co. Class B ADR -- COMPUTER
MANUFACTURING -- COMMUNICATIONS EQUIPMENT................................ 750,719 4,301,250
----------- ------------
SWITZERLAND-1.82%
1,200 Nestle S.A. -- FOOD MANUFACTURING -- OTHER................................. 2,383,799 2,485,957
124 Roche Holding AG -- CHEMICAL MANUFACTURING -- OTHER CHEMICAL AND
PREPARATION.............................................................. 785,444 1,132,351
----------- ------------
3,169,243 3,618,308
----------- ------------
UNITED KINGDOM-7.02%
40,000 AstraZeneca Group plc -- HEALTH CARE -- PHARMACEUTICAL AND MEDICINE
MANUFACTURING............................................................ 2,001,494 1,881,340
255,600 Capita Group plc -- PUBLIC -- ADMINISTRATION OF HUMAN RESOURCE PROGRAMS.... 185,210 1,963,419
193,500 Energis plc (a) -- INFORMATION -- WIRED TELECOMMUNICATIONS CARRIERS........ 185,606 1,656,385
2,027,320 Vodafone Group plc -- INFORMATION -- TELECOMMUNICATIONS CARRIERS........... 1,721,083 8,441,549
----------- ------------
4,093,393 13,942,693
----------- ------------
UNITED STATES-50.17%
17,000 Aether Systems, Inc. (a) -- INFORMATION -- TELECOMMUNICATIONS CARRIERS..... 1,998,047 1,370,625
72,000 Altera Corp. (a) -- COMPUTER MANUFACTURING -- SEMICONDUCTOR, ELECTRONIC
COMPONENT................................................................ 378,171 2,947,500
22,000 Applied Materials, Inc. (a) -- MACHINERY MANUFACTURING -- INDUSTRIAL
MACHINERY................................................................ 616,344 1,168,750
42,800 Aurora Biosciences Corp. (a) -- HEALTH CARE -- SCIENTIFIC RESEARCH AND
DEVELOPMENT SERVICES..................................................... 2,665,300 2,608,125
1,500 Avanex Corp. (a) -- ELECTRICAL EQUIPMENT MANUFACTURING -- COMPONENT
OTHER.................................................................... 54,000 152,344
48,750 Baker Hughes, Inc. -- PETROLEUM AND COAL -- MINING SUPPORT ACTIVITIES...... 934,074 1,675,781
174,000 Bed Bath & Beyond, Inc. (a) -- RETAIL -- HOME FURNISHINGS STORES........... 1,073,371 4,491,375
3,200 Broadcom Corp. Class A (a) -- COMPUTER MANUFACTURING -- SEMICONDUCTOR,
ELECTRONIC COMPONENT..................................................... 472,000 711,600
4,000 Brocade Communications Systems, Inc. (a) -- PROFESSIONAL
SERVICES -- COMPUTER SYSTEMS DESIGN AND RELATED.......................... 815,875 909,500
19,950 Cardinal Health, Inc. -- WHOLESALERS -- DRUGS AND DRUGGISTS SUNDRIES....... 686,723 1,890,263
158,425 Cheesecake Factory, Inc. (a) -- FOOD SERVICE -- FULL-SERVICE RESTAURANTS... 2,101,505 7,020,208
47,000 Chiron Corp. (a) -- HEALTH CARE -- SCIENTIFIC RESEARCH AND DEVELOPMENT
SERVICES................................................................. 1,516,708 2,035,688
30,000 Chubb Corp. (with rights) -- FINANCE -- INSURANCE CARRIERS................. 1,902,777 2,533,125
2,500 Ciphergen Biosystems, Inc. (a) -- HEALTH CARE -- SCIENTIFIC RESEARCH AND
DEVELOPMENT SERVICES..................................................... 40,000 77,500
104,000 Cisco Systems, Inc. (a) -- COMPUTER MANUFACTURING -- COMMUNICATIONS
EQUIPMENT................................................................ 139,389 5,603,000
54,100 Comcast Corp. Special Class A (a) -- ENTERTAINMENT -- CABLE AND OTHER
SUBSCRIPTION PROGRAMMING................................................. 1,909,238 2,204,575
62,000 Cypress Semiconductor Corp. (a) -- COMPUTER MANUFACTURING -- SEMICONDUCTOR,
ELECTRONIC COMPONENT..................................................... 2,682,995 2,321,125
6,300 DigitalThink, Inc. (a) -- INFORMATION -- OTHER INFORMATION SERVICES........ 88,200 221,977
18,800 Discovery Partners International (a) -- HEALTH CARE -- SCIENTIFIC RESEARCH
AND DEVELOPMENT SERVICES................................................. 344,766 282,000
31,000 Docent, Inc. (a) -- INFORMATION -- OTHER INFORMATION SERVICES.............. 416,562 798,250
47,000 Enron Corp. -- PETROLEUM AND COAL -- NATURAL GAS DISTRIBUTION.............. 1,535,425 3,856,938
122,000 EOG Resources, Inc. -- PETROLEUM AND COAL -- OIL AND GAS EXTRACTION........ 2,604,441 4,803,750
31,000 Guidant Corp. (a) -- MANUFACTURING -- ELECTROMEDICAL....................... 1,234,175 1,641,063
3,300 Illumina, Inc. (a) -- HEALTH CARE -- SCIENTIFIC RESEARCH AND DEVELOPMENT
SERVICES................................................................. 52,800 107,250
43,800 Intuit, Inc. (a) -- INFORMATION -- SOFTWARE PUBLISHERS..................... 912,180 2,690,963
106,400 LTX Corp. (a) -- COMPUTER MANUFACTURING -- NAVIGATIONAL, MEASURING AND
CONTROL INSTRUMENTS...................................................... 1,938,686 1,489,600
32,700 Medtronic, Inc. (with rights) -- MANUFACTURING -- ELECTROMEDICAL........... 1,017,216 1,776,019
39,000 Motorola, Inc. -- COMPUTER MANUFACTURING -- COMMUNICATIONS EQUIPMENT....... 898,596 972,563
7,000 Next Level Communications, Inc. (a) -- INFORMATION -- WIRED
TELECOMMUNICATIONS CARRIERS.............................................. 140,000 327,688
4,000 OmniSky Corporation (a) -- INFORMATION -- OTHER TELECOMMUNICATIONS......... 48,000 56,000
</TABLE>
8
<PAGE>
COMMON STOCKS-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
---------- ----------- ------------
<C> <S> <C> <C>
71,100 Outback Steakhouse, Inc. (a) -- FOOD SERVICE -- FULL-SERVICE RESTAURANTS... $1,684,569 $ 2,026,350
26,000 PE Corp. -- CELERA GENOMICS (A) -- HEALTH CARE -- SCIENTIFIC RESEARCH AND
DEVELOPMENT SERVICES..................................................... 160,327 1,755,000
96,500 PE Corp. -- PE BIOSYSTEMS GROUP -- COMPUTER MANUFACTURING -- NAVIGATIONAL,
MEASURING AND CONTROL INSTRUMENTS........................................ 1,426,474 11,290,500
61,000 PeopleSoft, Inc. (a) -- CAPITAL SPENDING................................... 994,763 2,662,078
18,000 Phillips Petroleum Co. -- PETROLEUM AND COAL -- PRODUCTS MANUFACTURING..... 1,127,201 1,111,500
48,000 RadioShack Corp. (with rights) -- RETAIL -- ELECTRONICS AND APPLIANCE
STORES................................................................... 1,857,355 2,862,000
22,682 Schlumberger Ltd. -- PETROLEUM AND COAL -- MINING SUPPORT ACTIVITIES....... 1,208,759 1,726,667
55,000 Starbucks Corp. (a) -- FOOD SERVICE -- LIMITED-SERVICE EATING PLACES....... 1,574,481 2,457,813
80,000 Tellabs, Inc. (a) -- INFORMATION -- WIRED TELECOMMUNICATIONS CARRIERS...... 537,810 3,995,000
38,000 Tidewater, Inc. -- PETROLEUM AND COAL -- MINING SUPPORT ACTIVITIES......... 1,065,942 1,755,125
36,800 Transgenomic, Inc. (a) -- HEALTH CARE -- SCIENTIFIC RESEARCH AND
DEVELOPMENT SERVICES..................................................... 592,850 552,000
45,000 Transocean Sedco Forex, Inc. -- PETROLEUM AND COAL -- MINING SUPPORT
ACTIVITIES............................................................... 2,339,905 2,385,000
16,000 Varian, Inc. (a) -- COMPUTER MANUFACTURING -- NAVIGATIONAL, MEASURING AND
CONTROL INSTRUMENTS...................................................... 430,501 493,000
80,800 Xilinx, Inc. (a) -- COMPUTER MANUFACTURING -- SEMICONDUCTOR, ELECTRONIC
COMPONENT................................................................ 463,180 5,852,950
----------- ------------
46,681,681 99,670,128
----------- ------------
TOTAL COMMON STOCKS........................................................ $98,778,742 $188,814,106
=========== ============
</TABLE>
PREFERRED STOCKS-0.82%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------ ----------- ------------
<C> <S> <C> <C>
GERMANY-0.82%
8,300 SAP AG Preferred -- INFORMATION -- SOFTWARE PUBLISHERS......................... $ 156,657 $ 1,628,621
----------- ------------
TOTAL LONG-TERM INVESTMENTS.................................................... $98,935,399 $190,442,727
=========== ============
</TABLE>
SHORT-TERM INVESTMENTS-4.06%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
---------- ------------
<C> <S> <C>
FINANCE-CONSUMER LENDING-1.61%
$3,206,000 Associates Corp. Master Variable Rate Note, Current Rate -- 6.51%........................ $ 3,206,000
------------
FINANCE-DEPOSITORY CREDIT BANKING-2.45%
4,863,502 U.S. Bank N.A. Money Market Variable Rate Time Deposit, Current rate -- 6.42%............ 4,863,502
------------
TOTAL SHORT-TERM INVESTMENTS............................................................. 8,069,502
------------
TOTAL INVESTMENTS IN SECURITIES (COST: $107,004,901) (b)................................. $198,512,229
============
</TABLE>
(a) Presently not paying dividend income.
(b) At October 31, 2000, the cost of securities for federal income tax purposes
was $107,427,668 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 94,345,618
Unrealized depreciation..................................... (2,857,438)
--------------------------------------------------------------------------
Net unrealized appreciation................................. $ 91,488,180
--------------------------------------------------------------------------
</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". This investment has been identified by portfolio
management as an illiquid security:
<TABLE>
<CAPTION>
Date Acquired Shares/Par Security Cost Basis
------------- ---------- -------- ----------
<S> <C> <C> <C>
1998 6,000 Fujitsu Support and Service, Inc. $93,974
</TABLE>
The value of this security at October 31, 2000, was $728,638, which
represents .37% of total net assets.
9
<PAGE>
FORTIS WORLDWIDE PORTFOLIOS, INC.
INTERNATIONAL EQUITY PORTFOLIO
Schedule of Investments
October 31, 2000
COMMON STOCKS-90.45%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
---------- ----------- ------------
<C> <S> <C> <C>
AUSTRALIA-1.29%
21,000 Broken Hill Proprietary Company Ltd. ADR -- PETROLEUM AND COAL -- OIL AND
GAS EXTRACTION........................................................... $ 464,071 $ 416,062
----------- ------------
BELGIUM-0.14%
307 Dexia -- FINANCE -- DEPOSITORY CREDIT BANKING.............................. 37,840 46,084
----------- ------------
BRAZIL-0.56%
12,000 Aracruz Celulose S.A. ADR -- PAPER, PULP AND PAPERBOARD MILLS.............. 236,032 180,000
----------- ------------
CANADA-1.95%
5,000 Nortel Networks Corp. -- INFORMATION -- OTHER TELECOMMUNICATIONS........... 154,525 227,500
14,000 Precision Drilling Corp. (a) -- PETROLEUM AND COAL -- MINING SUPPORT
ACTIVITIES............................................................... 380,582 400,750
----------- ------------
535,107 628,250
----------- ------------
CHINA-1.59%
25,000 China Unicom Ltd. ADR (a) -- INFORMATION -- OTHER TELECOMMUNICATIONS....... 499,750 512,500
----------- ------------
DENMARK-1.18%
7,000 Vestas Wind Systems A/S -- MACHINERY MANUFACTURING -- ENGINE, TURBINE AND
POWER TRANSMISSION EQUIPMENT............................................. 28,631 378,654
----------- ------------
FINLAND-1.43%
5,600 Nokia Oyj Corp. ADR -- COMPUTER MANUFACTURING -- COMMUNICATIONS
EQUIPMENT................................................................ 50,173 239,400
10,000 Sonera Oyj -- INFORMATION -- TELECOMMUNICATIONS RESELLERS.................. 256,619 220,037
----------- ------------
306,792 459,437
----------- ------------
FRANCE-9.56%
6,500 Alcatel ADR -- COMPUTER MANUFACTURING -- COMMUNICATIONS EQUIPMENT.......... 213,984 405,438
6,000 Aventis S.A. ADR -- HEALTH CARE -- PHARMACEUTICAL AND MEDICINE
MANUFACTURING............................................................ 333,269 432,375
2,000 Axa -- FINANCE -- INSURANCE CARRIERS....................................... 303,982 264,451
4,500 Axa ADR -- FINANCE -- INSURANCE CARRIERS................................... 315,587 298,969
1,080 Carrefour S.A. -- RETAIL -- GROCERY STORES................................. 60,849 72,409
1,750 Castorama Dubois Investissement S.A. -- RETAIL -- BUILDING MATERIALS AND
SUPPLIES DEALERS......................................................... 368,890 355,399
5,500 STMicroelectronics N.V. -- COMPUTER MANUFACTURING -- SEMICONDUCTOR,
ELECTRONIC COMPONENT..................................................... 201,961 285,656
1,800 Suez Lyonnaise des Eaux S.A. -- UTILITIES -- WATER, SEWAGE AND OTHER
SYSTEMS.................................................................. 283,367 274,317
7,266 Thomson Multimedia S.A. (a) -- COMPUTER MANUFACTURING -- COMPUTER AND
PERIPHERAL EQUIPMENT..................................................... 480,537 332,568
2,500 Total Fina Elf S.A. -- PETROLEUM AND COAL -- PRODUCTS MANUFACTURING........ 380,599 357,263
----------- ------------
2,943,025 3,078,845
----------- ------------
GERMANY-5.61%
1,200 Allianz AG -- FINANCE -- INSURANCE CARRIERS................................ 410,640 403,491
3,000 BASF AG -- CHEMICAL MANUFACTURING -- OTHER CHEMICAL AND PREPARATION........ 133,548 116,969
5,000 BASF AG ADR -- CHEMICAL MANUFACTURING -- OTHER CHEMICAL AND PREPARATION.... 220,962 196,250
4,500 Bayer AG -- CHEMICAL MANUFACTURING -- BASIC CHEMICAL MANUFACTURING......... 217,142 192,426
1,200 Deutsche Bank AG -- FINANCE -- DEPOSITORY CREDIT BANKING................... 77,231 97,135
3,000 Epcos AG (a) -- COMPUTER MANUFACTURING -- SEMICONDUCTOR, ELECTRONIC
COMPONENT................................................................ 101,472 228,343
2,500 Lion Bioscience AG ADR (a) -- HEALTH CARE -- SCIENTIFIC RESEARCH AND
DEVELOPMENT SERVICES..................................................... 99,209 192,656
5,000 Schering AG -- HEALTH CARE -- PHARMACEUTICAL AND MEDICINE MANUFACTURING.... 309,581 277,589
800 Siemens AG -- COMPUTER MANUFACTURING -- NAVIGATIONAL, MEASURING AND CONTROL
INSTRUMENTS.............................................................. 58,901 101,712
----------- ------------
1,628,686 1,806,571
----------- ------------
GREECE-0.82%
30,000 Hellenic Telecommunications Organization S.A. ADR -- INFORMATION -- OTHER
TELECOMMUNICATIONS....................................................... 360,864 262,500
----------- ------------
HONG KONG-3.22%
50,000 China Mobile (Hong Kong) Ltd. (a) -- INFORMATION -- TELECOMMUNICATIONS
CARRIERS................................................................. 307,811 322,153
578,000 Computer & Technologies Holdings Ltd. -- INFORMATION -- OTHER INFORMATION
SERVICES................................................................. 626,625 396,494
25,800 Hutchison Whampoa Ltd. -- REAL ESTATE, RENTAL AND LEASING -- ACTIVITIES
RELATED TO REAL ESTATE................................................... 358,688 320,056
----------- ------------
1,293,124 1,038,703
----------- ------------
IRELAND-1.38%
20,000 Riverdeep Group plc ADR (a) -- EDUCATION -- ELEMENTARY AND SECONDARY
SCHOOLS.................................................................. 395,125 445,000
----------- ------------
</TABLE>
10
<PAGE>
COMMON STOCKS-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
---------- ----------- ------------
<C> <S> <C> <C>
ISRAEL-2.82%
37,000 BATM Advanced Communications Ltd. -- ELECTRICAL EQUIPMENT
MANUFACTURING -- COMPONENT OTHER......................................... $ 246,120 $ 274,011
10,000 RADVision Ltd. (a) -- INFORMATION -- OTHER INFORMATION SERVICES............ 196,250 221,250
7,000 Teva Pharmaceutical Industries Ltd. ADR -- HEALTH CARE -- PHARMACEUTICAL
AND MEDICINE MANUFACTURING............................................... 256,425 413,875
----------- ------------
698,795 909,136
----------- ------------
ITALY-5.65%
16,000 Bipop-Carire S.p.A. -- FINANCE -- DEPOSITORY CREDIT BANKING................ 75,559 126,394
16,000 Bulgari S.p.A. -- RETAIL -- JEWELRY, LUGGAGE AND LEATHER GOODS STORES...... 118,561 188,099
1,600 e.Biscom S.p.A. (a) -- INFORMATION -- INTERNET SERVICE PROVIDERS AND WEB
SEARCH PORTALS........................................................... 248,192 205,594
60,000 Enel S.p.A. -- UTILITIES -- ELECTRIC GENERATION, TRANSMISSION AND
DISTRIBUTION............................................................. 272,500 222,241
13,000 Fiat S.p.A. -- MANUFACTURING -- MOTOR VEHICLE.............................. 347,381 301,915
25,000 Riunione Adriatica di Sicurta S.p.A. -- FINANCE -- INSURANCE CARRIERS...... 312,212 327,809
75,000 Telecom Italia Mobile S.p.A. -- INFORMATION -- TELECOMMUNICATIONS
CARRIERS................................................................. 319,363 397,312
4,500 Telecom Italia S.p.A. -- INFORMATION -- WIRED TELECOMMUNICATIONS
CARRIERS................................................................. 32,617 52,064
----------- ------------
1,726,385 1,821,428
----------- ------------
JAPAN-16.38%
2,400 Advantest Corp. -- COMPUTER MANUFACTURING -- SEMICONDUCTOR, ELECTRONIC
COMPONENT................................................................ 350,438 312,776
2,940 Aiful Corp. -- FINANCE -- OTHER FINANCIAL INVESTMENT ACTIVITIES............ 218,916 231,560
6,000 Bank of Tokyo-Mitsubishi Ltd. -- FINANCE -- DEPOSITORY CREDIT BANKING...... 84,515 71,930
12,000 Canon, Inc. ADR -- COMPUTER MANUFACTURING -- SEMICONDUCTOR, ELECTRONIC
COMPONENT................................................................ 481,625 486,750
3,000 Fujitsu Ltd. -- COMPUTER MANUFACTURING -- SEMICONDUCTOR, ELECTRONIC
COMPONENT................................................................ 46,284 53,411
2,000 Fujitsu Support and Service, Inc. -- INFORMATION -- OTHER INFORMATION
SERVICES (E)............................................................. 31,414 242,879
25 JSAT Corp. -- INFORMATION -- TELECOMMUNICATIONS SATELLITE.................. 160,920 202,628
1,200 Matsushita Electric Industrial Co. Ltd. ADR -- COMPUTER
MANUFACTURING -- COMMUNICATIONS EQUIPMENT................................ 299,769 350,700
2,100 Murata Manufacturing Co. Ltd. -- ELECTRICAL EQUIPMENT
MANUFACTURING -- COMPONENT OTHER......................................... 277,348 251,177
14,000 NEC Corp. -- COMPUTER MANUFACTURING -- COMPUTER AND PERIPHERAL EQUIPMENT... 303,333 266,691
600 Nintendo Co. Ltd. -- TOY MANUFACTURING..................................... 72,232 99,185
4,024 Nippon Telegraph & Telephone Corp. ADR -- INFORMATION -- WIRED
TELECOMMUNICATIONS CARRIERS.............................................. 259,660 183,847
16,000 Nomura Securities Co., Ltd. -- FINANCE -- OTHER FINANCIAL INVESTMENT
ACTIVITIES............................................................... 419,001 339,225
1,200 Orix Corp. -- REAL ESTATE, RENTAL AND LEASING -- ACTIVITIES RELATED TO REAL
ESTATE................................................................... 92,193 125,836
7,000 Shin-Etsu Chemical Co. Ltd. -- CHEMICAL MANUFACTURING -- RESIN, SYNTHETIC
RUBBER AND FILAMENTS..................................................... 305,650 287,206
3,200 Sony Corp. ADR -- COMPUTER MANUFACTURING -- COMMUNICATIONS EQUIPMENT....... 268,688 265,600
5,200 Sunkus & Associates, Inc. -- RETAIL -- GROCERY STORES...................... 157,288 154,776
6,000 Takeda Chemical Industries Ltd. -- CHEMICAL MANUFACTURING -- OTHER CHEMICAL
AND PREPARATION.......................................................... 334,592 395,091
2,800 Tokyo Electron Ltd. -- COMPUTER MANUFACTURING -- SEMICONDUCTOR, ELECTRONIC
COMPONENT................................................................ 223,172 218,994
39,000 Toshiba Corp. -- COMPUTER MANUFACTURING -- SEMICONDUCTOR, ELECTRONIC
COMPONENT................................................................ 334,448 278,597
3,000 Trend Micro, Inc. (a) -- INFORMATION -- OTHER INFORMATION SERVICES......... 154,255 282,993
2,000 Yamada Denki Co. Ltd. -- RETAIL -- ELECTRONICS AND APPLIANCE STORES........ 45,274 175,840
----------- ------------
4,921,015 5,277,692
----------- ------------
MEXICO-2.33%
3,000 Grupo Televisa S.A. GDR (a) -- ENTERTAINMENT -- RADIO AND TELEVISION
BROADCASTING............................................................. 116,205 162,375
4,000 Telefonos de Mexico S.A. ADR Class L -- INFORMATION -- TELECOMMUNICATIONS
RESELLERS................................................................ 249,245 215,750
167,000 Wal-Mart de Mexico S.A. de CV (a) -- RETAIL -- OTHER GENERAL MERCHANDISE
STORES................................................................... 291,651 371,673
----------- ------------
657,101 749,798
----------- ------------
NETHERLANDS-8.67%
12,000 ASM Lithography Holding N.V. (a) -- MACHINERY MANUFACTURING -- INDUSTRIAL
MACHINERY................................................................ 354,300 333,750
8,216 IHC Caland N.V. -- PETROLEUM AND COAL -- MINING SUPPORT ACTIVITIES......... 364,764 362,122
3,900 ING Groep N.V. -- FINANCE -- INTERNATIONAL TRADE FINANCING................. 215,474 267,492
10,000 KPNQwest N.V. (a) -- INFORMATION -- INTERNET SERVICE PROVIDERS AND WEB
SEARCH PORTALS........................................................... 208,480 241,990
8,000 Philips Electronics N.V. -- ELECTRICAL EQUIPMENT MANUFACTURING -- COMPONENT
OTHER.................................................................... 275,208 319,500
6,000 Qiagen N.V. (a) -- HEALTH CARE -- SCIENTIFIC RESEARCH AND DEVELOPMENT
SERVICES................................................................. 265,148 255,297
5,500 Royal Dutch Petroleum Co. NY Shares -- PETROLEUM AND COAL -- PRODUCTS
MANUFACTURING............................................................ 311,872 326,563
6,000 United Pan-Europe Communications N.V. (a) -- ENTERTAINMENT -- CABLE AND
OTHER SUBSCRIPTION PROGRAMMING........................................... 65,540 105,018
7,000 Versatel Telecom International N.V. (a) -- INFORMATION -- WIRED
TELECOMMUNICATIONS CARRIERS.............................................. 73,794 137,947
5,200 VNU N.V. -- ENTERTAINMENT -- NEWSPAPER, PERIODICAL, BOOK AND DATABASE
PUBLISHERS............................................................... 260,992 244,617
</TABLE>
11
<PAGE>
FORTIS WORLDWIDE PORTFOLIOS, INC.
INTERNATIONAL EQUITY PORTFOLIO (CONTINUED)
Schedule of Investments
October 31, 2000
COMMON STOCKS-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
---------- ----------- ------------
<C> <S> <C> <C>
10,500 Vopak N.V. -- TRANSPORTATION............................................... $ 262,082 $ 200,245
----------- ------------
2,657,654 2,794,541
----------- ------------
NORWAY-1.41%
20,000 Petroleum Geo-Services ADR (a) -- PETROLEUM AND COAL -- MINING SUPPORT
ACTIVITIES............................................................... 377,826 273,750
15,000 Stolt Comex Seaway S.A. (a) -- PETROLEUM AND COAL -- OIL AND GAS
EXTRACTION............................................................... 240,937 179,063
----------- ------------
618,763 452,813
----------- ------------
SINGAPORE-0.70%
13,500 ST Assembly Test Services Ltd. ADR (a) -- COMPUTER
MANUFACTURING -- NAVIGATIONAL, MEASURING AND CONTROL INSTRUMENTS......... 283,500 226,969
----------- ------------
SOUTH AFRICA-0.74%
35,000 Sappi Ltd. -- PAPER, PULP AND PAPERBOARD MILLS............................. 291,952 239,856
----------- ------------
SOUTH KOREA-0.81%
21,400 Korea Electric Power Corp. ADR -- UTILITIES -- ELECTRIC GENERATION,
TRANSMISSION AND DISTRIBUTION............................................ 264,685 260,813
----------- ------------
SPAIN-4.07%
3,666 Banco Bilbao Vizcaya Argentaria S.A. -- FINANCE -- DEPOSITORY CREDIT
BANKING.................................................................. 44,419 48,785
10,000 Grupo Auxiliar Metalurgico, S.A. (Gamesa) (a) -- UTILITIES -- ELECTRIC
GENERATION, TRANSMISSION AND DISTRIBUTION................................ 106,344 184,183
8,000 Jazztel plc ADR (a) -- INFORMATION -- INTERNET SERVICE PROVIDERS AND WEB
SEARCH PORTALS........................................................... 139,576 141,500
20,000 Promotora de Informaciones S.A. (Prisa) (a) -- ENTERTAINMENT -- CABLE AND
OTHER SUBSCRIPTION PROGRAMMING........................................... 390,208 384,810
1,000 Repsol-YPF S.A. -- PETROLEUM AND COAL -- OIL AND GAS EXTRACTION............ 20,479 15,867
10,000 Repsol-YPF S.A. ADR -- PETROLEUM AND COAL -- OIL AND GAS EXTRACTION........ 208,254 159,375
2,991 Telefonica S.A. ADR -- INFORMATION -- TELECOMMUNICATIONS RESELLERS......... 154,034 173,291
8,500 Terra Networks S.A. (a) -- INFORMATION -- INTERNET SERVICE PROVIDERS AND
WEB SEARCH PORTALS....................................................... 113,941 203,170
----------- ------------
1,177,255 1,310,981
----------- ------------
SWEDEN-0.73%
17,000 Ericsson (L.M.) Telephone Co. Class B ADR -- COMPUTER
MANUFACTURING -- COMMUNICATIONS EQUIPMENT................................ 162,000 235,875
----------- ------------
SWITZERLAND-2.25%
200 Nestle S.A. -- FOOD MANUFACTURING -- OTHER................................. 398,340 414,326
25 Roche Holding AG -- CHEMICAL MANUFACTURING -- OTHER CHEMICAL AND
PREPARATION.............................................................. 276,354 228,297
600 UBS AG -- FINANCE -- INTERNATIONAL TRADE FINANCING......................... 88,662 83,088
----------- ------------
763,356 725,711
----------- ------------
UNITED KINGDOM-9.19%
46,000 ARM Holdings plc (a) -- COMPUTER MANUFACTURING -- SEMICONDUCTOR, ELECTRONIC
COMPONENT................................................................ 22,333 454,217
8,000 AstraZeneca Group plc -- HEALTH CARE -- PHARMACEUTICAL AND MEDICINE
MANUFACTURING............................................................ 357,381 376,268
6,000 BP Amoco plc ADR -- PETROLEUM AND COAL -- PRODUCTS MANUFACTURING........... 316,828 305,625
32,800 HSBC Holdings plc -- FINANCE -- DEPOSITORY CREDIT BANKING.................. 393,219 456,309
45,000 Nycomed Amersham plc -- HEALTH CARE -- MEDICAL EQUIPMENT AND SUPPLIES
MANUFACTURING............................................................ 391,811 403,175
19,000 Royal Bank of Scotland Group plc -- FINANCE -- DEPOSITORY CREDIT BANKING... 279,608 426,816
88,447 Vodafone Group plc -- INFORMATION -- TELECOMMUNICATIONS CARRIERS........... 227,018 368,284
4,000 Vodafone Group plc ADR -- INFORMATION -- TELECOMMUNICATIONS CARRIERS....... 144,468 170,250
----------- ------------
2,132,666 2,960,944
----------- ------------
UNITED STATES-5.97%
1,800 Comverse Technology, Inc. (a) -- COMPUTER MANUFACTURING -- COMMUNICATIONS
EQUIPMENT................................................................ 59,962 201,150
10,000 deCODE GENETICS, Inc. (a) -- HEALTH CARE -- SCIENTIFIC RESEARCH AND
DEVELOPMENT SERVICES..................................................... 180,000 210,000
9,000 Enron Corp. -- PETROLEUM AND COAL -- NATURAL GAS DISTRIBUTION.............. 506,156 738,563
2,600 Phone.com, Inc. (with rights) (a) -- INFORMATION -- SOFTWARE PUBLISHERS.... 20,800 240,663
7,000 Schlumberger Ltd. -- PETROLEUM AND COAL -- MINING SUPPORT ACTIVITIES....... 550,459 532,875
----------- ------------
1,317,377 1,923,251
----------- ------------
TOTAL COMMON STOCKS........................................................ $26,401,551 $ 29,142,414
=========== ============
</TABLE>
12
<PAGE>
PREFERRED STOCKS-1.61%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
---------- ----------- ------------
<C> <S> <C> <C>
BRAZIL-0.82%
10,000 Petroleo Brasileiro S.A. ADR Preferred -- PETROLEUM AND COAL -- OIL AND GAS
EXTRACTION............................................................... $ 177,063 $ 265,195
----------- ------------
GERMANY-0.79%
1,300 SAP AG Preferred -- INFORMATION -- SOFTWARE PUBLISHERS..................... 267,877 255,085
----------- ------------
TOTAL PREFERRED STOCKS..................................................... 444,940 520,280
----------- ------------
TOTAL LONG-TERM INVESTMENTS................................................ $26,846,491 $ 29,662,694
=========== ============
</TABLE>
SHORT-TERM INVESTMENTS-8.85%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
---------- ------------
<C> <S> <C>
FINANCE-CONSUMER LENDING-4.32%
$1,393,000 Associates Corp. Master Variable Rate Note, Current Rate -- 6.51%........................ $ 1,393,000
------------
FINANCE-DEPOSITORY CREDIT BANKING-4.53%
1,459,328 U.S. Bank N.A. Money Market Variable Rate Time Deposit, Current rate -- 6.42%............ 1,459,328
------------
TOTAL SHORT-TERM INVESTMENTS............................................................. 2,852,328
------------
TOTAL INVESTMENTS IN SECURITIES (COST: $29,698,819) (b).................................. $ 32,515,022
============
</TABLE>
(a) Presently not paying dividend income.
(b) At October 31, 2000, the cost of securities for federal income tax purposes
was $29,732,462 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 4,747,438
Unrealized depreciation..................................... (1,931,235)
--------------------------------------------------------------------------
Net unrealized appreciation................................. $ 2,816,203
--------------------------------------------------------------------------
</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 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". This investment has been identified by portfolio
management as an illiquid security:
<TABLE>
<CAPTION>
Date Acquired Shares/Par Security Cost Basis
------------- ---------- -------- ----------
<S> <C> <C> <C>
1998 2,000 Fujitsu Support and Service, Inc. 31,414
</TABLE>
The value of this security at October 31, 2000, was $242,879 which
represents .75% of total net assets.
13
<PAGE>
FORTIS WORLDWIDE PORTFOLIOS, INC.
Statements of Assets and Liabilities
October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL INTERNATIONAL
GROWTH EQUITY
PORTFOLIO PORTFOLIO
--------- -------------
<S> <C> <C>
ASSETS:
Investments in securities, as detailed in the accompanying schedules, at
market (cost $107,004,901; $29,698,819) (Note 1)....................... $198,512,229 $32,515,022
Collateral for securities lending transactions (Note 1).................. 25,151,240 --
Receivables:
Unrealized appreciation on forward foreign currency contracts.......... 187 491
Investment securities sold............................................. 1,304,679 285,249
Interest and dividends................................................. 166,380 32,209
Subscriptions of capital stock......................................... 416,343 5,207
Deferred registration costs (Note 1)..................................... 16,161 11,287
Deferred organization costs (Note 1)..................................... -- 11,301
------------ -----------
TOTAL ASSETS............................................................... 225,567,219 32,860,766
------------ -----------
LIABILITIES:
Unrealized depreciation on forward foreign currency contracts (Note 1 and
3)..................................................................... 12,823 3,088
Payable upon return of securities loaned (Note 1)........................ 25,151,240 --
Payable for investment securities purchased.............................. 1,477,100 585,195
Redemptions of capital stock............................................. 2,127 3,589
Payable for investment advisory and management fees (Note 2)............. 167,976 27,838
Payable for distribution fees (Note 2)................................... 2,335 426
Accounts payable and accrued expenses.................................... 69,383 19,411
------------ -----------
TOTAL LIABILITIES.......................................................... 26,882,984 639,547
------------ -----------
NET ASSETS:
Net proceeds of capital stock, par value $.01 per share-authorized
10,000,000,000; 10,000,000,000 shares; respectively.................... 94,964,382 30,475,434
Unrealized appreciation of investments in securities and the translations
of assets and liabilities denominated in foreign currency.............. 91,496,057 2,815,790
Accumulated net realized gain (loss) from the sale of investments and
foreign currency transactions.......................................... 12,223,796 (1,070,005)
------------ -----------
TOTAL NET ASSETS........................................................... $198,684,235 $32,221,219
============ ===========
SHARES OUTSTANDING AND NET ASSET VALUE PER SHARE:
Class A shares (based on net assets of $148,027,062 and $21,827,260;
respectively and 4,553,938 and 1,113,701 shares outstanding;
respectively)............................................................ $32.51 $19.60
------------ -----------
Class B shares (based on net assets of $18,716,863 and $3,873,171;
respectively and 603,624 and 199,889 shares outstanding; respectively)... $31.01 $19.38
------------ -----------
Class C shares (based on net assets of $6,604,120 and $1,982,610;
respectively and 212,216 and 102,312 shares outstanding; respectively)... $31.12 $19.38
------------ -----------
Class H shares (based on net assets of $25,336,190 and $4,538,178;
respectively and 817,027 and 234,452 shares outstanding; respectively)... $31.01 $19.36
------------ -----------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
14
<PAGE>
FORTIS WORLDWIDE PORTFOLIOS, INC.
Statements of Operations
For the Year Ended October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL INTERNATIONAL
GROWTH EQUITY
PORTFOLIO PORTFOLIO
--------- -------------
<S> <C> <C>
NET INVESTMENT LOSS
Income:
Interest income............................... $ 502,363 $ 199,941
Dividend income (Net of foreign witholding
taxes of $54,766 and $16,078,
respectively)................................ 673,363 206,743
Fee income (Note 1)........................... 59,044 --
----------- -----------
Total income.................................... 1,234,770 406,684
----------- -----------
Expenses:
Investment advisory and management fees (Note
2)........................................... 2,146,014 314,488
Distribution fees (Class A) (Note 2).......... 402,545 54,590
Distribution fees (Class B) (Note 2).......... 191,757 33,705
Distribution fees (Class C) (Note 2).......... 69,855 18,973
Distribution fees (Class H) (Note 2).......... 274,222 43,452
Registration fees (Note 2).................... 43,830 40,418
Shareholders' notices and reports............. 80,500 10,700
Legal and auditing fees....................... 29,300 18,750
Custodian fees................................ 42,000 12,000
Directors' fees and expenses.................. 14,016 2,450
Amortization of organization costs (Note 1)... -- 4,843
Other......................................... 10,447 1,584
----------- -----------
Total expenses.................................. 3,304,486 555,953
Less reimbursable expenses (Note 2)........... 10,218 --
----------- -----------
Net expenses.................................... 3,294,268 555,953
----------- -----------
NET INVESTMENT LOSS............................... (2,059,498) (149,269)
----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY (NOTE 1)
Net Realized gain (loss) from:
Investments................................... 13,156,121 (1,036,362)
Foreign currency transactions................. (32,619) (752)
----------- -----------
NET REALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS................... 13,123,502 (1,037,114)
----------- -----------
Net change in unrealized appreciation or
depreciation from:
Investments..................................... 14,830,619 (577,021)
Translation of assets and liabilities
denominated in foreign currency............... (10,026) (612)
----------- -----------
NET CHANGE IN UNREALIZED APPRECIATION OR
DEPRECIATION ON INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS.................................... 14,820,593 (577,633)
----------- -----------
NET GAIN (LOSS) ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS........................... 27,944,095 (1,614,747)
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS................................. $25,884,597 $(1,764,016)
=========== ===========
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
15
<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, 2000 OCTOBER 31, 1999
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Net investment loss............................. $ (2,059,498) $ (1,207,461)
Net realized gain on investments and foreign
currency transactions......................... 13,123,502 20,959,969
Net change in unrealized appreciation or
depreciation on investments and foreign
currency transactions......................... 14,820,593 27,669,330
------------ -------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS...................................... 25,884,597 47,421,838
------------ -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net realized gains on investments
Class A....................................... (14,847,214) --
Class B....................................... (1,748,861) --
Class C....................................... (655,730) --
Class H....................................... (2,622,899) --
------------ -------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS............... (19,874,704) --
------------ -------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from sale of shares
Class A (1,304,135 and 4,879,613 shares)...... 47,673,523 127,633,641
Class B (160,924 and 83,217 shares)........... 5,559,149 2,157,182
Class C (42,335 and 1,178,211 shares)......... 1,470,930 31,361,408
Class H (129,580 and 98,991 shares)........... 4,493,037 2,541,509
Proceeds from shares issued as a result of
reinvested dividends
Class A (437,764 shares)...................... 14,507,484 --
Class B (54,302 shares)....................... 1,727,891 --
Class C (20,180 shares)....................... 644,334 --
Class H (81,773 shares)....................... 2,602,826 --
Less cost of repurchase of shares
Class A (1,357,375 and 5,488,888 shares)...... (49,570,797) (144,495,487)
Class B (101,667 and 111,406 shares).......... (3,520,732) (2,845,259)
Class C (28,375 and 1,222,259 shares)......... (973,790) (32,536,494)
Class H (125,055 and 190,306 shares).......... (4,298,605) (4,871,082)
------------ -------------
NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE
TRANSACTIONS.................................... 20,315,250 (21,054,582)
------------ -------------
TOTAL INCREASE IN NET ASSETS...................... 26,325,143 26,367,256
------------ -------------
NET ASSETS:
Beginning of year............................... 172,359,092 145,991,836
------------ -------------
End of year..................................... $198,684,235 $ 172,359,092
============ =============
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
16
<PAGE>
FORTIS WORLDWIDE PORTFOLIOS, INC.
Statements of Changes in Net Assets
INTERNATIONAL EQUITY PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED YEAR ENDED
OCTOBER 31, 2000 OCTOBER 31, 1999
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Net investment loss............................. $ (149,269) $ (19,738)
Net realized gain (loss) on investments and
foreign currency transactions................. (1,037,114) 223,901
Net change in unrealized appreciation or
depreciation of investments and foreign
currency transactions......................... (577,633) 3,367,410
------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS................................. (1,764,016) 3,571,573
------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A....................................... (35,022) (32,918)
Class B....................................... -- (483)
Class C....................................... -- (104)
Class H....................................... -- (977)
From net realized gains on investments
Class A....................................... (95,596) --
Class B....................................... (10,612) --
Class C....................................... (5,867) --
Class H....................................... (16,658) --
------------ -----------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS............... (163,755) (34,482)
------------ -----------
CAPITAL STOCK TRANSACTIONS:
Proceeds from sale of shares
Class A (959,282 and 546,092 shares).......... 22,671,380 7,678,118
Class B (248,900 and 50,148 shares)........... 5,874,627 726,902
Class C (95,512 and 34,331 shares)............ 2,302,352 516,579
Class H (195,630 and 77,598 shares)........... 4,621,142 1,142,843
Proceeds from shares issued as a result of
reinvested dividends
Class A (5,784 and 2,974 shares).............. 128,835 32,865
Class B (469 and 43 shares)................... 10,566 483
Class C (259 and 9 shares).................... 5,839 104
Class H (724 and 88 shares)................... 16,318 973
Less cost of repurchase of shares
Class A (450,544 and 274,307 shares).......... (10,526,705) (3,733,662)
Class B (105,758 and 7,802 shares)............ (2,460,400) (117,721)
Class C (28,480 and 2,320 shares)............. (629,007) (29,273)
Class H (58,715 and 6,764 shares)............. (1,337,772) (87,457)
------------ -----------
NET INCREASE IN NET ASSETS FROM SHARE
TRANSACTIONS.................................... 20,677,175 6,130,754
------------ -----------
TOTAL INCREASE IN NET ASSETS...................... 18,749,404 9,667,845
NET ASSETS:
Beginning of year............................... 13,471,815 3,803,970
------------ -----------
End of year..................................... $ 32,221,219 $13,471,815
============ ===========
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
17
<PAGE>
FORTIS WORLDWIDE PORTFOLIOS, INC.
Notes to Financial Statements
--------------------------------------------------------------------------------
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: The portfolios (the funds) 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 funds 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
funds 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 among classes. Income, expenses (other than
expenses incurred under each class' 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 funds 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 funds 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 funds and the resulting
unrealized appreciation or depreciation are determined using foreign currency
exchange rates from an independent pricing service. The funds 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, 2000, the cost of purchases and
proceeds from sales of securities (other than short-term securities)
aggregated $60,356,802 and $60,360,899 for Global Growth Portfolio; and
$29,155,258 and $9,042,569 for International Equity Portfolio, respectively.
LENDING OF PORTFOLIO SECURITIES: At October 31, 2000, securities valued at
$25,193,233 were on loan to brokers from the Global Growth Portfolio. For
collateral, the Global Growth Portfolio's custodian received $25,151,240 in
cash which is maintained in a separate account and invested in short term
investment vehicles. As of October 31, 2000, due to fluctuating market
conditions the fund requested additional collateral which was received on
November 1, 2000. Fee income from securities lending amounted to $59,044 for
the year ended October 31, 2000. The risks to the fund in security lending
transactions are that the borrower may not provide additional collateral when
required or return the securities when due and that the proceeds from the
sale of investments made with cash collateral received will be less than
amounts required to be returned to the borrowers.
FEDERAL TAXES: The funds 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 fund intends to distribute substantially all of
its net investment income and realized gains, if any, to avoid the payment of
federal excise taxes.
For federal income tax purposes, the International Equity Portfolio has a
capital loss carryover of $1,036,362 at October 31, 2000, which, if not
offset by subsequent capital gains, will expire in 2008.
It is unlikely the Board of Directors will authorize a distribution of any
net realized gains until the available capital loss carryover has been offset
or expired.
18
<PAGE>
--------------------------------------------------------------------------------
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 fund.
On the Statement of Assets and Liabilities, due to permanent book-to-tax
differences, such as distributions upon redemption and net operating losses,
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 Investment Accumulated
Income Paid-in-Capital Gains
<S> <C> <C> <C>
-------------------------------------------------------------------------------------------------
Global Growth Portfolio...................... $2,059,498 $(1,184,583) $(874,915)
International Equity Portfolio............... 184,291 (158,591) (25,700)
</TABLE>
INCOME AND CAPITAL GAINS DISTRIBUTIONS: It is the policy of the funds 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 fund at net asset value or payable
in cash without any charge to the shareholder.
For federal income tax purposes the funds may designate as capital gains
distributions, the earnings and profits distributed to shareholders on the
redemption of fund shares during the year.
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
will be amortized over 60 months on a straight line basis, beginning
March 2, 1998.
ILLIQUID SECURITIES: At October 31, 2000, 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, 2000, were $728,638 for Global Growth and $242,879
for International Equity which represents 0.37% and 0.75% 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
accounting principles generally accepted in the United States of America
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.
OTHER: At October 31, 2000, Fortis Advisers, Inc. owned 212,341 shares of the
International Equity Portfolio.
2. PAYMENTS TO RELATED PARTIES: Fortis Advisers, Inc., is the investment adviser
for the funds. 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 funds.
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 fund's) on
an annual basis, to be used to compensate those who sell shares of the fund
and to pay certain other expenses of selling fund shares. Fortis Investors,
Inc. also received sales charges (paid by purchasers of the fund's shares)
aggregating $417,594 and $297,334 for Class A, $34,948 and $5,040 for
Class B, $1,156 and $1,701 for Class C, and $44,391 and $6,824 for Class H
for the Global Growth and International Equity Portfolios, respectively, for
the year ended October 31, 2000.
Legal fees and expenses aggregating $5,000 and $750 for the Global Growth and
International Equity Portfolios, respectively, for the year ended
October 31, 2000, were paid to a law firm of which the secretary of the funds
is a partner.
19
<PAGE>
FORTIS WORLDWIDE PORTFOLIOS, INC.
Notes to Financial Statements (continued)
--------------------------------------------------------------------------------
3. FORWARD FOREIGN CURRENCY CONTRACTS: At October 31, 2000, the funds entered
into forward foreign currency exchange contracts that obligated the funds to
receive currencies at a specified future date. The unrealized depreciation of
$12,636 and $2,597 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:
FORWARD FOREIGN CURRENCY CONTRACTS
<TABLE>
<CAPTION>
GLOBAL GROWTH PORTFOLIO
-------------------------------------------------------------------------------------------------------------
U.S. Dollar U.S. Dollar
Currency To Value As Of Currecy To Value As Of Appreciation/
Settle Date Be Delivered October 31, 2000 Be Received October 31, 2000 (Depreciation)
<S> <C> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------------------------
November 1, 2000 1,431,074 $1,212,978 1,200,528 $1,200,528 $(12,450)
Euro U.S. Dollar
November 2, 2000 43,590 22,588 22,775 22,775 187
Australian Dollar U.S. Dollar
November 3, 2000 1,385,148 1,385,148 10,800,000 1,384,775 (373)
U.S. Dollar Hong Kong Dollar
November 15, 2000 62 52 52 52 --
Euro U.S. Dollar
------------------- ---------- --------
$2,620,766 $2,608,130 $(12,636)
------------------- ---------- --------
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY PORTFOLIO
----------------------------------------------------------------------------------------------------
U.S. Dollar U.S. Dollar
Currency To Value As Of Currecy To Value As Of Appreciation/
Settle Date Be Delivered Oct. 31, 2000 Be Received Oct. 31, 2000 (Depreciation)
<S> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------
Nov. 1, 2000 286,218 $242,598 239,593 $ 239,593 $(3,005)
Euro U.S. Dollar
Nov. 2, 2000 10,171 5,271 5,309 5,309 38
Australian Dollar U.S. Dollar
Nov. 3, 2000 307,811 307,811 2,400,000 307,728 (83)
U.S. Dollar Hong Kong Dollar
Nov. 3, 2000 106,344 106,344 126,000 106,797 453
U.S. Dollar Euro
-------- ---------- -------
$662,024 $ 659,427 $(2,597)
-------- ---------- -------
</TABLE>
20
<PAGE>
--------------------------------------------------------------------------------
4. FINANCIAL HIGHLIGHTS: Selected per share historical data for each of the
funds was as follows:
<TABLE>
<CAPTION>
Class A
-----------------------------------------------------
Year Ended October 31,
-----------------------------------------------------
GLOBAL GROWTH PORTFOLIO 2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Net asset value, beginning of year...... $ 31.23 $ 23.18 $ 23.92 $ 21.28 $ 18.24
-------- -------- -------- -------- --------
Operations:
Investment loss - net................. (.28) (.17) (.12) (.07) (.06)
Net realized and unrealized gain
(loss) on investments............... 5.17 8.22 (.62) 2.71 3.10
-------- -------- -------- -------- --------
Total from operations................... 4.89 8.05 (.74) 2.64 3.04
-------- -------- -------- -------- --------
Distributions to shareholders:
From net realized gains on
investments......................... (3.61) -- -- -- --
-------- -------- -------- -------- --------
Net asset value, end of year............ $ 32.51 $ 31.23 $ 23.18 $ 23.92 $ 21.28
-------- -------- -------- -------- --------
Total Return @.......................... 15.44% 34.73% (3.09)% 12.41% 16.67%
Net assets end of year (000s omitted)... $148,027 $130,195 $110,772 $125,268 $107,607
Ratio of expenses to average daily net
assets................................ 1.35% 1.41% 1.42% 1.44% 1.51%
Ratio of net investment loss to average
daily net assets...................... (.78)% (.60)% (.44)% (.29)% (.33)%
Portfolio turnover rate................. 30% 49% 29% 30% 18%
</TABLE>
<TABLE>
<CAPTION>
Class B
------------------------------------------------
Year Ended October 31,
------------------------------------------------
GLOBAL GROWTH PORTFOLIO 2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------
Net asset value, beginning of year...... $ 30.13 $ 22.54 $ 23.42 $ 20.98 $18.12
------- ------- ------- ------- -------
Operations:
Investment income (loss) - net........ (.44) (.63) (.26) (.27) (.24)
Net realized and unrealized gain
(loss) on investments............... 4.93 8.22 (.62) 2.71 3.10
------- ------- ------- ------- -------
Total from operations................... 4.49 7.59 (.88) 2.44 2.86
------- ------- ------- ------- -------
Distributions to shareholders:
From net realized gains on
investments......................... (3.61) -- -- -- --
------- ------- ------- ------- -------
Net asset value, end of year............ $ 31.01 $ 30.13 $ 22.54 $ 23.42 $20.98
------- ------- ------- ------- -------
Total Return @.......................... 14.60% 33.67% (3.76)% 11.63% 15.78%
Net assets end of year (000s omitted)... $18,717 $14,766 $11,680 $11,446 $5,735
Ratio of expenses to average daily net
assets................................ 2.10% 2.16% 2.17% 2.19% 2.26%
Ratio of net investment loss to average
daily net assets...................... (1.53)% (1.35)% (1.19)% (1.03)% (.99)%
Portfolio turnover rate................. 30% 49% 29% 30% 18%
</TABLE>
@ These are the total returns during the periods, including reinvestment
of all dividend and capital gains distributions without adjustments
for sales charge.
21
<PAGE>
FORTIS WORLDWIDE PORTFOLIOS, INC.
Notes to Financial Statements (continued)
--------------------------------------------------------------------------------
4. FINANCIAL HIGHLIGHTS (continued):
<TABLE>
<CAPTION>
Class C
---------------------------------------------------------
Year Ended October 31,
---------------------------------------------------------
GLOBAL GROWTH PORTFOLIO 2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------
Net asset value, beginning of year...... $30.19 $22.55 $23.43 $21.00 $18.13
------ ------ ------ ------ ------
Operations:
Investment income (loss) - net........ (.41) (.58) (.26) (.28) (.23)
Net realized and unrealized gain
(loss) on investments............... 4.95 8.22 (.62) 2.71 3.10
------ ------ ------ ------ ------
Total from operations................... 4.54 7.64 (.88) 2.43 2.87
------ ------ ------ ------ ------
Distributions to shareholders:
From net realized gains on
investments......................... (3.61) -- -- -- --
------ ------ ------ ------ ------
Net asset value, end of year............ $31.12 $30.19 $22.55 $23.43 $21.00
------ ------ ------ ------ ------
Total Return @.......................... 14.73% 33.88% (3.76)% 11.57% 15.83%
Net assets end of year (000s omitted)... $6,604 $5,375 $5,009 $4,664 $3,087
Ratio of expenses to average daily net
assets................................ 1.96%(a) 2.04%(a) 2.17% 2.19% 2.26%
Ratio of net investment loss to average
daily net assets...................... (1.38)%(a) (1.23)%(a) (1.20)% (1.04)% (.99)%
Portfolio turnover rate................. 30% 49% 29% 30% 18%
</TABLE>
<TABLE>
<CAPTION>
Class H
------------------------------------------------
Year Ended October 31,
------------------------------------------------
GLOBAL GROWTH PORTFOLIO 2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------
Net asset value, beginning of year...... $ 30.14 $ 22.54 $ 23.42 $ 20.99 $ 18.12
------- ------- ------- ------- -------
Operations:
Investment income (loss) - net........ (.45) (.62) (.26) (.28) (.23)
Net realized and unrealized gain
(loss) on investments............... 4.93 8.22 (.62) 2.71 3.10
------- ------- ------- ------- -------
Total from operations................... 4.48 7.60 (.88) 2.43 2.87
------- ------- ------- ------- -------
Distributions to shareholders:
From net realized gains on
investments......................... (3.61) -- -- -- --
------- ------- ------- ------- -------
Net asset value, end of year............ $ 31.01 $ 30.14 $ 22.54 $ 23.42 $ 20.99
------- ------- ------- ------- -------
Total Return @.......................... 14.56% 33.72% (3.76)% 11.58% 15.84%
Net assets end of year (000s omitted)... $25,336 $22,023 $18,531 $18,690 $10,765
Ratio of expenses to average daily net
assets................................ 2.10% 2.16% 2.17% 2.19% 2.26%
Ratio of net investment loss to average
daily net assets...................... (1.53)% (1.35)% (1.19)% (1.04)% (1.02)%
Portfolio turnover rate................. 30% 49% 29% 30% 18%
</TABLE>
@ These are the total returns during the periods, including reinvestment
of all dividend and capital gains distributions without adjustments
for sales charge.
(a) Advisors has waived expenses for 12b-1 fees charged in excess of
National Association of Securities Dealers limitations. For the years
ended October 31, 2000, and October 31, 1999, had the waivers not been
made, ratios of expenses and net investment loss to average daily net
assets would have been 2.10% and 2.16% and (1.53%) and (1.35%)
respectively, for Class C.
22
<PAGE>
--------------------------------------------------------------------------------
4. FINANCIAL HIGHLIGHTS (continued):
<TABLE>
<CAPTION>
Class A
-----------------------------------------
Year Ended October 31,
-----------------------------------------
INTERNATIONAL EQUITY PORTFOLIO 2000 1999 1998**
<S> <C> <C> <C>
-----------------------------------------------------------------------------------
Net asset value, beginning of year...... $ 17.14 $ 10.36 $10.46
------- ------- ------
Operations:
Investment income (loss) - net........ (.03) -- .02
Net realized and unrealized gain
(loss) on investments............... 2.65 6.88 (.12)
------- ------- ------
Total from operations................... 2.62 6.88 (.10)
------- ------- ------
Distributions to shareholders:
From investment income - net.......... (.03) (.10) --
From net realized gains............... (.13) -- --
------- ------- ------
Total distributions to shareholders..... (.16) (.10) --
------- ------- ------
Net asset value, end of year............ $ 19.60 $ 17.14 $10.36
------- ------- ------
Total Return @.......................... 15.20% 66.90% (.96)%
Net assets end of year (000s omitted)... $21,827 $10,267 $3,362
Ratio of expenses to average daily net
assets................................ 1.54% 1.70%(a) 1.70%(a)*
Ratio of net investment income (loss) to
average daily net assets.............. (.25)% (.18)%(a) .57%(a)*
Portfolio turnover rate................. 33% 62% 43%
</TABLE>
<TABLE>
<CAPTION>
Class B
---------------------------------------
Year Ended October 31,
---------------------------------------
INTERNATIONAL EQUITY PORTFOLIO 2000 1999 1998**
<S> <C> <C> <C>
---------------------------------------------------------------------------------
Net asset value, beginning of year...... $17.05 $10.33 $10.45
------ ------ ------
Operations:
Investment income (loss) - net........ (.17) (.13) --
Net realized and unrealized gain
(loss) on investments............... 2.63 6.88 (.12)
------ ------ ------
Total from operations................... 2.46 6.75 (.12)
------ ------ ------
Distributions to shareholders:
From investment income - net.......... -- (.03) --
From net realized gains............... (.13) -- --
------ ------ ------
Total distributions to shareholders..... (.13) (.03) --
------ ------ ------
Net asset value, end of year............ $19.38 $17.05 $10.33
------ ------ ------
Total Return @.......................... 14.34% 65.56% (1.15)%
Net assets end of year (000s omitted)... $3,873 $ 959 $ 143
Ratio of expenses to average daily net
assets................................ 2.29% 2.45%(a) 2.45%(a)*
Ratio of net investment loss to average
daily net assets...................... (1.00)% (.93)%(a) (.18)%(a)*
Portfolio turnover rate................. 33% 62% 43%
</TABLE>
* Annualized.
** For the period March 2, 1998 (date shares first offered to the public)
to October 31, 1998.
@ These are the total returns during the periods, 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
Class B. 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 loss to average daily net assets would have been
2.44% and (.92%) for Class A, 3.19% and (1.67%) for Class B. For the
period ended October 31, 1998, the ratios of expenses and net
investment loss to average daily net assets would have been 3.70% and
(1.43%) for Class A, and 4.45% and (2.18%) for Class B.
23
<PAGE>
FORTIS WORLDWIDE PORTFOLIOS, INC.
Notes to Financial Statements (continued)
--------------------------------------------------------------------------------
4. FINANCIAL HIGHLIGHTS (continued):
<TABLE>
<CAPTION>
Class C
---------------------------------------
Year Ended October 31,
---------------------------------------
INTERNATIONAL EQUITY PORTFOLIO 2000 1999 1998**
<S> <C> <C> <C>
---------------------------------------------------------------------------------
Net asset value, beginning of year...... $17.05 $10.32 $10.45
------ ------ ------
Operations:
Investment income (loss) - net........ (.17) (.12) (.01)
Net realized and unrealized gain
(loss) on investments............... 2.63 6.88 (.12)
------ ------ ------
Total from operations................... 2.46 6.76 (.13)
------ ------ ------
Distributions to shareholders:
From investment income - net.......... -- (.03) --
From net realized gains............... (.13) -- --
------ ------ ------
Total distributions to shareholders..... (.13) (.03) --
------ ------ ------
Net asset value, end of year............ $19.38 $17.05 $10.32
------ ------ ------
Total Return @.......................... 14.34% 65.72% (1.24)%
Net assets end of year (000s omitted)... $1,983 $ 597 $ 31
Ratio of expenses to average daily net
assets................................ 2.29% 2.45%(a) 2.45%(a)*
Ratio of net investment loss to average
daily net assets...................... (1.00)% (.93)%(a) (.18)%(a)*
Portfolio turnover rate................. 33% 62% 43%
</TABLE>
<TABLE>
<CAPTION>
Class H
---------------------------------------
Year Ended October 31,
---------------------------------------
INTERNATIONAL EQUITY PORTFOLIO 2000 1999 1998**
<S> <C> <C> <C>
---------------------------------------------------------------------------------
Net asset value, beginning of year...... $17.03 $10.32 $10.45
------ ------ ------
Operations:
Investment income (loss) - net........ (.17) (.14) (.01)
Net realized and unrealized gain
(loss) on investments............... 2.63 6.88 (.12)
------ ------ ------
Total from operations................... 2.46 6.74 (.13)
------ ------ ------
Distributions to shareholders:
From investment income - net.......... -- (.03) --
From net realized gains............... (.13) -- --
------ ------ ------
Total distributions to shareholders..... (.13) (.03) --
------ ------ ------
Net asset value, end of year............ $19.36 $17.03 $10.32
------ ------ ------
Total Return @.......................... 14.36% 65.53% (1.24)%
Net assets end of year (000s omitted)... $4,538 $1,649 $ 267
Ratio of expenses to average daily net
assets................................ 2.29% 2.45%(a) 2.45%(a)*
Ratio of net investment loss to average
daily net assets...................... (1.00)% (.93)%(a) (.18)%(a)*
Portfolio turnover rate................. 33% 62% 43%
</TABLE>
* Annualized.
** For the period March 2, 1998 (date shares first offered to the public)
to October 31, 1998.
@ These are the total returns during the periods, 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
2.45% of the average daily net assets for Classes 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
loss to average daily net assets would have been 3.19% and (1.67%) for
Class C, 3.19% and (1.67%) for Class H. For the period ended
October 31, 1998, the ratios of expenses and net investment loss 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.
24
<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, 2000 and the related statements of operations for the
year then ended, the statements of changes in net assets for each of the years
in the two-year period ended October 31, 2000, 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 auditing standards generally accepted
in the United States of America. 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. Our procedures included confirmation of
securities owned as of October 31, 2000, by correspondence with the custodian.
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
Global Growth Portfolio and International Equity Portfolio as of October 31,
2000 and the results of their operations for the year then ended, the changes in
their net assets for each of the years in the two-year period ended October 31,
2000 and the financial highlights for the periods presented, in conformity with
accounting principles generally accepted in the United States of America.
KPMG LLP
Minneapolis, Minnesota
December 1, 2000
25
<PAGE>
FEDERAL INCOME TAX INFORMATION (UNAUDITED)
The information set forth below is for the fund's fiscal year as required by
federal tax law. Shareholders, however, must report distributions on a calendar
year basis for income tax purposes which may include distributions of two fiscal
years of the fund. Accordingly, the information needed by shareholders for
income tax purposes will be sent to them in early 2001. Shareholders may wish to
consult a tax advisor on how to report distributions for state and local
purposes.
GLOBAL GROWTH PORTFOLIO FEDERAL TAX
<TABLE>
<CAPTION>
RECORD DATE Class A Class B Class C Class H
<S> <C> <C> <C> <C>
----------------------------------------
Long-Term Capital Gain Per Share
December 17, 1999............................ $3.6100 $3.6100 $3.6100 $3.6100
------- ------- ------- -------
INTERNATIONAL EQUITY PORTFOLIO FEDERAL TAX
RECORD DATE
Ordinary Income Per Share
September 26, 2000........................... $0.0315 $ -- $ -- $ --
------- ------- ------- -------
RECORD DATE
Short-Term Capital Gain Per Share
December 17, 1999............................ 0.1300 0.1300 0.1300 0.1300
September 26, 2000........................... 0.0042 0.0042 0.0042 0.0042
------- ------- ------- -------
Total Short-Term Capital Gain Per Share...... $0.1342 $0.1342 $0.1342 $0.1342
------- ------- ------- -------
</TABLE>
26
<PAGE>
DIRECTORS AND OFFICERS
DIRECTORS Richard W. Cutting CPA AND FINANCIAL CONSULTANT
Allen R. Freedman CHAIRMAN AND CHIEF EXECUTIVE OFFICER,
FORTIS, INC. MANAGING DIRECTOR OF
FORTIS INTERNATIONAL, N.V. THROUGH
JULY 2000
Dr. Robert M. Gavin PRESIDENT, CRANBROOK EDUCATION
COMMUNITY. PRIOR TO JULY 1996,
PRESIDENT MACALESTER COLLEGE
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
Phillip O. Peterson MUTUAL FUND INDUSTRY CONSULTANT;
PARTNER OF KPMG LLP, THROUGH JUNE
1999
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 F. Schenker MARKETING CONSULTANT. PRIOR TO MAY
1996, SENIOR VICE PRESIDENT OF
MARKETING & STRATEGIC PLANNING,
ROLLERBLADE, INC.
Dr. Lemma W. Senbet CONSULTANT, INTERNATIONAL FINANCIAL
INSTITUTIONS, THE WILLIAM E. MAYER
PROFESSOR OF FINANCE AND CHAIR,
FINANCE DEPARTMENT, UNIVERSITY OF
MARYLAND, COLLEGE PARK, MD
Joseph M. Wikler INVESTMENT CONSULTANT AND PRIVATE
INVESTOR. PRIOR TO JANUARY 1994,
DIRECTOR OF RESEARCH, CHIEF
INVESTMENT OFFICER, PRINCIPAL, AND
DIRECTOR, THE ROTHSCHILD CO.
OFFICERS
Dean C. Kopperud
PRESIDENT AND DIRECTOR
Robert W. Beltz, Jr.
VICE PRESIDENT
James S. Byrd
VICE PRESIDENT
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
INVESTMENT MANAGER, REGISTRAR Fortis Advisers, Inc.
AND TRANSFER AGENT BOX 64284, ST. PAUL, MINNESOTA 55164
PRINCIPAL UNDERWRITER Fortis Investors, Inc.
BOX 64284, ST. PAUL, MINNESOTA 55164
CUSTODIAN U.S. Bank National Association
MINNEAPOLIS, MINNESOTA
GENERAL COUNSEL Dorsey & Whitney LLP
MINNEAPOLIS, MINNESOTA
INDEPENDENT AUDITORS KPMG LLP
MINNEAPOLIS, MINNESOTA
The use of this material is authorized only when preceded or accompanied by a
prospectus.
27
<PAGE>
FORTIS FINANCIAL GROUP'S OTHER PRODUCTS AND SERVICES
MUTUAL Fortis Bond Funds MONEY FUND
FUNDS/PORTFOLIOS U.S. GOVERNMENT
CONVENIENT ACCESS TO SECURITIES FUND
A BROAD RANGE OF TAX-FREE NATIONAL
SECURITIES 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 Fortis Opportunity Fixed FIXED ACCOUNT
ANNUITIES & Variable Annuity MONEY MARKET SUBACCOUNT
TAX-DEFERRED Masters Variable Annuity U.S. GOVERNMENT
INVESTING SECURITIES SUBACCOUNT
Empower Variable DIVERSIFIED INCOME
Annuity SUBACCOUNT
MULTISECTOR BOND
SUBACCOUNT
HIGH YIELD SUBACCOUNT
GLOBAL ASSET ALLOCATION
SUBACCOUNT
ASSET ALLOCATION
SUBACCOUNT
AMERICAN LEADERS
SUBACCOUNT
VALUE SUBACCOUNT
CAPITAL OPPORTUNITIES
SUBACCOUNT
GROWTH & INCOME
SUBACCOUNT
S&P 500 INDEX SUBACCOUNT
BLUE CHIP STOCK
SUBACCOUNT
BLUE CHIP STOCK II
SUBACCOUNT
INTERNATIONAL STOCK
SUBACCOUNT
MID CAP STOCK SUBACCOUNT
SMALL CAP VALUE
SUBACCOUNT
GLOBAL GROWTH SUBACCOUNT
GLOBAL EQUITY SUBACCOUNT
LARGE CAP GROWTH
SUBACCOUNT
INVESTORS 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 Variable Universal Life MONEY MARKET SUBACCOUNT
AND TAX-DEFERRED Insurance U.S. GOVERNMENT
INVESTMENT SECURITIES SUBACCOUNT
OPPORTUNITY DIVERSIFIED INCOME
SUBACCOUNT
MULTISECTOR BOND
SUBACCOUNT
HIGH YIELD SUBACCOUNT
GLOBAL ASSET ALLOCATION
SUBACCOUNT
ASSET ALLOCATION
SUBACCOUNT
AMERICAN LEADERS
SUBACCOUNT
VALUE SUBACCOUNT
CAPITAL OPPORTUNITIES
SUBACCOUNT
GROWTH & INCOME
SUBACCOUNT
S&P 500 INDEX SUBACCOUNT
BLUE CHIP STOCK
SUBACCOUNT
BLUE CHIP STOCK II
SUBACCOUNT
INTERNATIONAL STOCK
SUBACCOUNT
MID CAP STOCK SUBACCOUNT
SMALL CAP VALUE
SUBACCOUNT
GLOBAL GROWTH SUBACCOUNT
GLOBAL EQUITY SUBACCOUNT
LARGE CAP GROWTH
SUBACCOUNT
INVESTORS GROWTH
SUBACCOUNT
GROWTH STOCK SUBACCOUNT
AGGRESSIVE GROWTH
SUBACCOUNT
Adaptable Life
Universal Life
FORTIS FINANCIAL GROUP manages and distributes mutual funds, annuities and life
insurance products. The mutual funds, variable life and variable annuity
products are distributed through FORTIS INVESTORS, INC. and managed by FORTIS
ADVISERS, INC. The insurance products are issued by FORTIS BENEFITS INSURANCE
COMPANY, FIRST FORTIS LIFE INSURANCE COMPANY and 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.
28
<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 provides a wide selection of investment products
including annuities, life insurance and mutual funds. 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 issued by
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 PRSRT STD
St. Paul, MN 55164-0284 U.S. Postage
PAID
Permit No. 3794
Fortis international stock funds Minneapolis, MN
---------------
The Fortis brandmark and Fortis-SM- are servicemarks
of Fortis (B) and Fortis (NL).
96156-C- Fortis, Inc. 12/00
