-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OGqHVkHT8l6k4OrtN5fTi8sj4aawEft4rLYoOlfM34/iyvIpcV9ewNGiKCSRRKst FcrpNcVr8W8cAGoRc2oTwg== 0000912057-96-013517.txt : 19960702 0000912057-96-013517.hdr.sgml : 19960702 ACCESSION NUMBER: 0000912057-96-013517 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960430 FILED AS OF DATE: 19960701 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: FORTIS WORLDWIDE PORTFOLIOS INC CENTRAL INDEX KEY: 0000874211 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 411692680 STATE OF INCORPORATION: MN FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-06297 FILM NUMBER: 96589192 BUSINESS ADDRESS: STREET 1: 500 BIELENBERG DR STREET 2: P O BOX 64284 CITY: ST PAUL STATE: MN ZIP: 55164 BUSINESS PHONE: 6127384000 MAIL ADDRESS: STREET 1: P O BOX 64284 CITY: ST PAUL STATE: MN ZIP: 55164 FORMER COMPANY: FORMER CONFORMED NAME: AMEV WORLDWIDE PORTFOLIOS INC DATE OF NAME CHANGE: 19600201 N-30D 1 N-30D FORTIS GLOBAL GROWTH PORTFOLIO SEMI-ANNUAL REPORT CONTENTS LETTER TO SHAREHOLDERS 2 SCHEDULE OF INVESTMENTS 5 STATEMENT OF ASSETS AND LIABILITIES 9 STATEMENT OF OPERATIONS 10 STATEMENTS OF CHANGES IN NET ASSETS 11 NOTES TO FINANCIAL STATEMENTS 12 BOARD OF DIRECTORS AND OFFICERS 15 OTHER PRODUCTS AND SERVICES 16 TOLL-FREE PERSONAL ASSISTANCE Shareholder Services (800) 800-2638, Ext. 3012 7:30 a.m. to 5:30 p.m. CST, M-Th 7:30 a.m. to 5:00 p.m. CST, F TOLL-FREE INFORMATION LINE For daily account balances, transaction activity or net asset value information (800) 800-2638, Ext. 4344 24 hours a day HOW TO USE THIS REPORT For a quick overview of the fund's performance during the past six months, refer to the Highlights box below. The letter from the portfolio manager and president provides a more detailed analysis of the fund and financial markets. The charts alongside the letter are useful because they provide more information about your investments. The top holdings charts show the types of securities in which the fund invests, and the pie chart shows a breakdown of the fund's assets by industry. The performance chart graphically compares the fund's total return performance with a selected investment index. Remember, however, that an index may reflect the performance of securities the fund may not hold. Also, the index does not deduct sales charges, investment advisory fees and other fund expenses, whereas your fund does. Individuals cannot buy an unmanaged index fund without incurring some charges and expenses. This report is just one of several tools you can use to learn more about your investment in the Fortis Family of Mutual Funds. Your investment representative, who understands your personal financial situation, can best explain the features of your investment and how it's designed to help you meet your financial goals. HIGHLIGHTS FOR THE SIX MONTH PERIOD ENDED APRIL 30, 1996
MSCI WORLD CLASS A CLASS B CLASS C CLASS H INDEX --------- --------- --------- --------- --------- GLOBAL GROWTH PORTFOLIO NET ASSET VALUE PER SHARE: Beginning of period................... $ 18.24 $ 18.12 $ 18.13 $ 18.12 691.60 End of period......................... $ 20.80 $ 20.59 $ 20.60 $ 20.59 777.93 TOTAL RETURN 14.04% 13.63% 13.62% 13.63% 13.63%
These are the fund's total returns during the period, including reinvestment of all dividend and capital gains distributions without adjustments for sales charge. FOR MORE INFORMATION ABOUT FORTIS FINANCIAL GROUP'S FAMILY OF PRODUCTS, CALL YOUR INVESTMENT REPRESENTATIVE OR THE HOME OFFICE AT (800) 800-2638. TO ORDER PROSPECTUSES OR SALES LITERATURE FOR ANY FORTIS PRODUCT, CALL (800) 800-2638, EXT. 4579. 1 Photo Global investing makes a world of difference. DEAR SHAREHOLDER, We are pleased to present the Fortis Global Growth Portfolio semi-annual report for the period ended April 30, 1996. ECONOMIC OUTLOOK Rising long-term interest rates during early 1996 may indicate the beginning of the end of an extraordinarily favorable global liquidity cycle that helped propel financial markets in 1995. Improving economic activity in Japan and the United States may prevent further easing of money availability by the respective banking systems during 1996. The expected slowing trend in corporate earnings growth in Europe and the United States during 1996 and the high valuation levels of most global equity markets could also hold back further share price advances. We expect that companies with exceptional growth prospects will continue to receive investor attention. This is especially true during a low inflation, low corporate earnings growth environment. As long as the world economy grows at a moderate pace, both inflation and equity market valuation levels can be maintained. This is especially important for higher growth-oriented companies which are the main focus of Fortis Global Growth Portfolio. The key risk to our investment approach at today's valuation levels, is a rapid reacceleration of inflation. This would mean higher interest rates and lower valuation levels for equities. At the present time this is not an overwhelming issue, but is one that we monitor closely. INVESTMENT OUTLOOK FORTIS GLOBAL GROWTH PORTFOLIO (FGGP) A global portfolio has the flexibility to invest anywhere in the world, including emerging market regions. These areas generally include Latin America, the Far Eastern Nations and Central Europe. At the end of April 1996 these emerging regions represented 7.5% of the fund's total assets. We anticipate that these areas will continue to offer good potential. As a growth-oriented global mutual fund, FGGP focuses on companies with strong market positions and superior growth prospects. We search the world for companies that can demonstrate strength in both revenues and earnings. Well-positioned and well-managed niche companies can achieve superior results as they tend to dominate their respective market segments. By building a highly diversified portfolio with these types of companies, we have been able to spread our risk on a geographic and industrywide basis, yet still provide strong investment returns. As we look around the world, we continue to find that the United States offers the largest selection of these types of companies. This is especially true in some of the key growth industry segments of the future. Companies based in the United States dominate the key growth segments of technology, which includes networking, telecommunications equipment and software development. Companies involved in these rapidly growing markets globally will continue to benefit from the trend of corporations investing in productivity enhancing technologies. Examples of these types of companies which are major holdings in FGGP include Cisco Systems, a worldwide leader in networking products; Parametric Technologies, a leader in computer aided engineering software products; 3Com, a global leader in networking equipment; and US Robotics, a leader in high speed modems and networking-related products. We have also been successful in identifying numerous foreign-based companies that have strong growth characteristics. Examples include Fila Holdings, an Italian-based footwear and apparel company; IHC Caland, a Dutch-based engineering company and global leader in dredging and floating production platforms used in the energy industry; SGL Carbon, a German-based company providing carbon and graphite products; and Wolford AG, an Austrian apparel company. All of these companies have unique market niches and have demonstrated strong earnings growth for several years. Although certain holdings are not "household names," these companies generally dominate their respective markets. Over the long run, we anticipate these types of companies will continue to reward shareholders. 2 PORTFOLIO REVIEW In July 1996, FGGP will celebrate its five-year anniversary as a public mutual fund. The fund's average annual return over the period from its inception through April 30, 1996, is 16.4 percent. Over the past three-year period, its average annual return is 18.3 percent, while the trailing 12-month period return is 40.3 percent. This compares to returns of 11.0 percent, 11.5 percent and 12.0 percent respectively for the Morgan Stanley Capital International World Index over comparable time periods. While we have positioned the portfolio to be highly diversified, the geographic breakdown is dictated by our ability to find companies with the features we seek. At the end of April 1996, the portfolio was invested in 30 different nations with more than 100 individual holdings. Foreign holdings represented approximately 49 percent of total assets at the end of April, while the United States accounted for about 40 percent. The remaining 11 percent was invested in short-term cash investments. Factors impacting performance were numerous and included concerns over the Federal Reserve Bank's monetary policy, rising global long-term interest rates, significant fluctuations in technology-related holdings, and a slowing corporate earnings growth trend. Exceptionally strong cash inflows into mutual funds in recent months have helped equity markets overcome some of these concerns. Companies with strong relative earnings growth prospects have been a prime beneficiary of recent investor attention. Higher long-term interest rates however offer investors an alternative to equities and also threaten the valuation level of the equity markets. PORTFOLIO STRATEGY Over the past six months, we have not made any significant strategic changes in the portfolio. We have added a number of holdings in various emerging regions such as Latin America and the Far East, which lagged most markets in 1995. Our long-term focus will remain on identifying well-positioned companies that have the potential to demonstrate strong relative growth. Over the past year shareholders have been rewarded by investing in these types of growth-oriented companies. The outlook, as always, remains uncertain. Since the equity markets have performed at a high level for quite a long period of time, we anticipate that returns may be more difficult to achieve in the future. By investing in well-positioned growth-oriented companies on a global basis, we feel that we can reduce the fluctuation in returns through greater diversification. Longer term, we continue to believe the outlook for global growth investing remains highly favorable. IN CLOSING We are proud of our past achievements and are hopeful that our long-term, growth-oriented, global approach will continue to reward shareholders. We appreciate your investment with Fortis and look forward to serving your financial needs. If you have any questions, please call us or talk with your investment professional. Sincerely, [SIG] Dean C. Kopperud President [SIG] James S. Byrd Vice President May 16, 1996 3 PORTFOLIO CHANGES FOR THE SIX-MONTH PERIOD ENDED 4/30/96 STOCK ADDITIONS: Quilmes Industrial Societe Anonyme ADS Disco S.A. Wolford AG KCI Konecranes International Corp. Adidas AG Hutchison Whampoa, Ltd. Sun Hung Kai Properties, Ltd. MOL Magyar Olaj-es Gazipari Rt. GDS P.T. Telekomunikasi Indonesia Amway Japan, Ltd. Sony Corp. Petroleum Geo-Services A/S ADS CPT Telefonica Del Peru-B S.A. Megaworld Properties Holdomg, Inc. Ciba - Geigy AG Harvey Nichols Orange plc Tommy Hilfiger Corp. Data Processing Recources Corporation Sykes Enterprises Inc. Avant Corp. Forte Software, Inc. Planning Sciences Intl plc ADR SQA, Inc. Estee Lauder Co. American Oncology Resources, Inc. HCIA Inc. Total Renal Care Holdings CUC International, Inc. Tidewater Inc. STOCK ELIMINATIONS: Buenos Aires Embotelladora S.A. AD YPF Sociedad Anonima ADR Iochpe Maxion S.A. Sponsored ADR Sidel SA Elsevier NV Empresa Nacional de Electricidad British Sky Broadcasting plc Kwik Fit holdings plc Telewest plc Vodafone Group plc ADR DSC Communications Corp. Landmark Graphics Corp. Tandy Corp. Wabash National Corp. FORTIS GLOBAL GROWTH PORTFOLIO CLASS A VALUE OF $10,000 INVESTED JULY 8, 1991 EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
GLOBAL GROWTH PORTFOLIO CLASS A AVERAGE ANNUAL TOTAL RETURN SINCE 1 Year July 8, 1991@ With Sales Charge* +33.59% +15.19% Without Sales Charge** +40.26% +16.36% MSCI World Index*** Global Growth Portfolio Class A 07/08/91 10,000 9,525 04/30/92 10,443 10,518 04/30/93 12,170 11,943 04/30/94 13,681 13,548 04/30/95 15,087 14,090 04/30/96 17,995 19,762
Annual period ended April 30, 1996 Past performance is not indicative of future performance. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. * SEC defined total returns, including reinvestment of all dividend and capital gains distributions and the reduction due to the maximum sales charge of 4.75%. ** These are the portfolios total returns during the period, including reinvestment of all dividend and capital gains distributions without adjustment for sales charge. *** An unmanaged index of the world's major equity markets in U.S. dollars, weighted by stock market value. @ Date shares were first offered to the public. TOP TEN HOLDINGS AS OF 4/30/96
Percent of Stocks Net Assets - ------------------------------------------------------------------- 1. Gartner Group, Inc. Class A (US) 3.3% 2. SAP AG Systeme Non-Voting (Germany) 3.3% 3. SGL Carbon AG (Germany) 2.2% 4. Nokia (AB) (Finland) 2.2% 5. Input/Output, Inc. (US) 2.1% 6. Fila Holdings ADR (IT) 2.0% 7. Wisconsin Central Transportation Corp. (US) 2.0% 8. Randstad Holdings (Netherlands) 1.9% 9. U.S. Robotics Corp. (US) 1.9% 10. Cisco Systems, Inc. (US) 1.9%
PORTFOLIO DIVERSIFICATION BY COUNTRY AS OF 4/30/96 EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC United States 40.0% Other 13.1% Cash Equivalents/Receivables 11.1% Japan 7.3% Germany 6.1% Netherlands 5.2% Sweden 3.4% United Kingdom 3.2% Italy 3.2% Finland 2.2% Israel 1.9% France 1.8% Hong Kong 1.5%
CLASS B, C AND H AVERAGE ANNUAL TOTAL RETURNS
Since 1 Year Inception+ - ------------------------------------------------------------- Class B sharesDiamond 39.22% 25.78% Class B sharesDiamond Diamond 35.62% 22.18% Class C sharesDiamond 39.28% 25.83% Class C sharesDiamond Diamond 38.28% 24.83% Class H sharesDiamond 39.22% 25.78% Class H sharesDiamond Diamond 35.62% 22.18%
Past performance is not indicative of future performance. Total returns include reinvestment of all dividend and capital gains distributions. The performance of the separate classes (A, B, C, and H) will vary based on the differences in sales loads and distribution fees paid by shareholders investing in the different classes. Class A has a maximum sales charge of 4.75%, Class B and H have a CDSC of 4.00% (with a waiver of 10% of the amount invested) if redeemed within two years of purchase, and Class C has a CDSC of 1.00% if redeemed within one year of purchase. Diamond Without CDSC. Diamond With CDSC. Assumes redemption on April 30, 1996. Diamond + Since November 14, 1994 -- Date shares were first offered to the public. 4 FORTIS GLOBAL GROWTH PORTFOLIO Schedule of Investments April 30,1996 (Unaudited) COMMON STOCKS-85.37%
- -------------------------------------------------------------------------------- Market Shares Cost (b) Value (c) ----------- ------------ ------------ ARGENTINA-1.14% 50,000 Disco S.A. ADR (a) -- FOOD-GROCERY, MISCELLANEOUS.............................. $ 788,250 $ 793,750 28,000 Quilmes Industrial Societe Anonyme ADR (a) -- BEVERAGE............................ 294,000 332,500 ------------ ------------ 1,082,250 1,126,250 ------------ ------------ AUSTRALIA-0.57% 24,000 News Corp., Ltd. ADR (The) (f) -- BROADCASTING........................ 395,026 564,000 ------------ ------------ AUSTRIA-0.94% 4,300 Wolford AG -- APPAREL........................ 867,494 932,638 ------------ ------------ BELGIUM-1.28% 8,000 Barco NV -- TELECOMMUNICATIONS............... 871,054 1,260,392 ------------ ------------ BRAZIL-0.55% 10,000 Telebras ADR (f) -- UTILITIES-TELEPHONE...... 416,250 541,250 ------------ ------------ CANADA-0.44% 16,000 Rogers Cantel Mobile Communications, Inc. Class B (a) -- TELECOMMUNICATIONS.......... 364,812 432,000 ------------ ------------ CHILE-0.29% 10,000 Santa Isabel S.A. ADR (a) (f) -- FOOD-GROCERY, MISCELLANEOUS......... 175,680 288,750 ------------ ------------ FINLAND-2.21% 3,000 KCI Konecranes International Corp. (g) -- MACHINERY........................... 44,214 54,411 60,000 Nokia (AB) K Shares -- TELECOMMUNICATIONS.... 982,660 2,124,517 ------------ ------------ 1,026,874 2,178,928 ------------ ------------ FRANCE-1.76% 4,000 Castorama Dubois Investisse -- RETAIL-MISCELLANEOUS......... 355,465 764,130 12,100 Sanofi SA -- DRUGS........................... 671,652 974,614 ------------ ------------ 1,027,117 1,738,744 ------------ ------------ GERMANY-2.78% 8,000 Adidas AG (a) -- SHOES AND LEATHER........... 385,870 603,057 23,000 SGL Carbon AG -- STEEL AND IRON.............. 1,134,611 2,144,739 ------------ ------------ 1,520,481 2,747,796 ------------ ------------ HONG KONG-1.46% 400,000 First Pacific Co., Ltd. -- MISCELLANEOUS..... 444,061 532,627 70,000 Hutchison Whampoa, Ltd. -- REAL ESTATE....... 459,904 434,376 50,000 Sun Hung Kai Properties, Ltd. -- REAL ESTATE..................................... 430,887 476,714 ------------ ------------ 1,334,852 1,443,717 ------------ ------------ HUNGARY-0.93% 85,000 MOL Magyar Olaj-es Gazipari Rt. GDS (a) (g) -- OIL-REFINING........................ 688,500 917,405 ------------ ------------ INDIA-0.50% 9,000 Bajaj Auto Ltd. GDR (a) (e) -- AUTOMOBILE MANUFACTURERS.............................. 232,257 225,849 12,000 Indian Hotels Co., Ltd. (The) GDR (a) (e) -- HOTEL AND MOTEL..................... 199,200 267,634 ------------ ------------ 431,457 493,483 ------------ ------------ INDONESIA-0.90% 26,000 P.T. Telekomunikasi Indonesia (a) (f) -- UTILITIES-TELEPHONE................. 484,368 887,250 ------------ ------------ ISRAEL-1.91% 38,000 ECI Telecom Ltd. (f) -- TELECOMMUNICATIONS... 670,706 992,750 20,000 Teva Pharmaceutical Industries, Ltd. ADR (f) -- DRUGS............................... 535,250 897,500 ------------ ------------ 1,205,956 1,890,250 ------------ ------------ ITALY-3.19% 29,400 Fila Holdings S.p.A. ADR -- APPAREL.......... 494,131 2,006,550 22,000 Industrie Natuzzi S.p.A. ADR (f) -- FURNITURE........................... 402,621 1,144,000 ------------ ------------ 896,752 3,150,550 ------------ ------------ JAPAN-7.27% 15,000 Amway Japan, Ltd. -- HOUSEHOLD PRODUCTS...... 728,058 771,827 10,000 Autobacs Seven Co., Ltd. -- RETAIL-MISCELLANEOUS............... 988,160 949,867
5 FORTIS GLOBAL GROWTH PORTFOLIO Schedule of Investments April 30,1996 (Unaudited) COMMON STOCKS-CONTINUED - --------------------------------------------------------------------------------
Market Shares Cost (b) Value (c) ----------- ------------ ------------ 10,000 Canon, Inc. ADR -- OFFICE EQUIPMENT AND SUPPLIES................................... $ 727,099 $ 995,000 160 DDI Corp. -- TELECOMMUNICATIONS.............. 1,030,778 1,373,155 12,000 Kyocera Corp. -- ELECTRONIC-CONTROLS AND EQUIPMENT.................................. 893,163 902,708 4,500 Matsushita Electric Industrial Co., Ltd. ADR -- ELECTRONIC-CONTROLS AND EQUIPMENT... 747,471 785,250 140 Nippon Telegraph & Telephone Corp. -- TELEPHONE SERVICES................ 1,206,567 1,083,899 5,000 Sony Corp. -- ELECTRONIC-CONTROLS AND EQUIPMENT.................................. 327,471 324,578 ------------ ------------ 6,648,767 7,186,284 ------------ ------------ MALAYSIA-0.60% 175,000 Technology Resources Industries (a) -- TELECOMMUNICATIONS.................. 630,891 596,495 ------------ ------------ MEXICO-0.69% 15,500 Panamerican Beverages, Inc. Class A (f) -- BEVERAGE............................ 546,573 680,062 ------------ ------------ NETHERLANDS-5.15% 15,000 Baan Co. NV (a) -- COMPUTER-SOFTWARE......... 240,000 900,000 30,000 IHC Caland NV -- MACHINERY-OIL AND WELL...... 482,759 1,176,724 30,000 Randstad Holdings NV -- BUSINESS SERVICES AND SUPPLIES................................... 820,388 1,919,827 10,000 Wolters Kluwer NV -- PUBLISHING.............. 500,209 1,091,632 ------------ ------------ 2,043,356 5,088,183 ------------ ------------ NORWAY-0.26% 8,200 Petroleum Geo-Services A/S ADR (a) -- MACHINERY-OIL AND WELL.............. 255,223 259,325 ------------ ------------ PERU-0.34% 150,000 CPT Telefonica Del Peru-B S.A. -- UTILITIES-TELEPHONE................ 331,997 332,495 ------------ ------------ PHILIPPINES-0.77% 1,055,000 Megaworld Properties & Holdings, Inc. (a) -- REAL ESTATE......................... 547,687 756,189 ------------ ------------ SOUTH KOREA-0.53% 19,000 Korea Electric Power Corp. (f) -- UTILITIES-ELECTRIC.................. 408,500 527,250 ------------ ------------ SPAIN-0.54% 24,000 Centros Comerciales Continente S.A. -- RETAIL-MISCELLANEOUS............... 501,807 527,614 ------------ ------------ SWEDEN-3.35% 35,000 Astra AB -- A SHARES -- DRUGS................ 693,684 1,552,505 40,000 Ericsson (L.M.) Telephone Co. Class B ADR (f) -- TELECOMMUNICATIONS.................. 511,500 815,000 25,000 Hoganas Class B -- MISCELLANEOUS............. 649,781 827,561 2,300 WM Data AB Class B -- BUSINESS SERVICES AND SUPPLIES................................... 63,829 115,388 ------------ ------------ 1,918,794 3,310,454 ------------ ------------ SWITZERLAND-1.38% 500 Ciba-Geigy AG -- DRUGS....................... 594,645 578,885 100 Roche Holdings AG, Genusschein NVP -- DRUGS............................... 522,734 784,567 ------------ ------------ 1,117,379 1,363,452 ------------ ------------ THAILAND-0.44% 30,000 Bangkok Bank Co., Ltd. -- BANKS.............. 332,434 434,866 ------------ ------------ UNITED KINGDOM-3.19% 150,000 Dixons Group plc -- RETAIL-ELECTRIC PRODUCTS, RADIO, TV, AUDIO........................... 476,679 1,109,694 23,000 Harvey Nichols (a)(g) -- RETAIL-CLOTHING..... 94,367 112,170 150,000 Orange plc (a) -- TELECOMMUNICATIONS......... 486,751 537,965 120,000 Powerscreen International plc -- CONSTRUCTION........................ 557,262 821,128 120,000 Thorn Lighting Group plc -- ELECTRIC PRODUCTS................................... 292,535 286,315 15,000 Videotron Holdings plc ADR (a) (f) -- TELECOMMUNICATIONS.................. 262,500 285,000 ------------ ------------ 2,170,094 3,152,272 ------------ ------------ UNITED STATES-40.01% 32,000 3Com Corp. (a) (f) -- TELECOMMUNICATIONS..... 420,000 1,476,000 13,000 American Oncology Resources, Inc. (a) (f) -- HEALTH CARE SERVICES................ 464,417 620,750 64,000 Anixter International, Inc. (a) -- ELECTRIC PRODUCTS................................... 1,201,329 1,120,000 40,000 Apple South, Inc. -- RESTAURANTS AND FRANCHISING................................ 406,335 1,040,000 35,000 Applebees International, Inc. (f) -- RESTAURANTS AND FRANCHISING......... 594,675 927,500 24,000 Applied Materials, Inc. (a) -- ELECTRONIC-CONTROLS AND EQUIPMENT... 593,200 960,000 25,000 AutoZone, Inc. (a) (f) -- RETAIL-MISCELLANEOUS................ 599,584 912,500
6 COMMON STOCKS-CONTINUED - --------------------------------------------------------------------------------
Market Shares Cost (b) Value (c) ----------- ------------ ------------ 35,000 Avant! Corp. (a) (f) -- COMPUTER-SOFTWARE.... $ 827,690 $ 752,500 15,000 Bed, Bath & Beyond, Inc. (a) (f) -- RETAIL-MISCELLANEOUS................ 330,625 885,937 11,000 Catalina Marketing Corp. (a) -- BUSINESS SERVICES AND SUPPLIES...................... 443,564 856,625 24,000 Cheesecake Factory, Inc. (a) (f) -- RESTAURANTS AND FRANCHISING......... 619,637 630,000 36,000 Cisco Systems, Inc. (a) (f) -- TELECOMMUNICATIONS.................. 366,375 1,867,500 52,000 Credit Acceptance Corp. (a) (f) -- FINANCE COMPANIES.................................. 1,112,800 975,000 15,000 Crown Cork & Seal Company, Inc. -- CONTAINERS AND PACKAGING.............................. 678,225 706,875 36,800 CUC International, Inc. (a) (f) -- MISCELLANEOUS....................... 1,210,944 1,209,800 12,000 Data Processing Resources Corp. (a) -- BUSINESS SERVICES AND SUPPLIES...... 247,773 303,000 10,000 Estee Lauder Co. -- COSMETICS AND SUNDRIES... 260,000 366,250 5,000 Forte Software, Inc. (a) -- COMPUTER-SOFTWARE................... 105,000 308,750 96,000 Gartner Group, Inc. Class A (a) (f) -- BUSINESS SERVICES AND SUPPLIES...... 300,000 3,288,000 3,500 HCIA, Inc. (a) -- HEALTH CARE SERVICES....... 99,925 189,000 60,000 Input/Output, Inc. (a) -- COMPUTER-SOFTWARE................... 200,750 2,085,000 63,600 Mercury Finance Co. -- FINANCE COMPANIES..... 736,602 731,400 14,000 Mercury Interactive, Corp. (a) -- COMPUTER-SOFTWARE................... 317,344 192,500 15,750 Office Depot, Inc. (a) (f) -- RETAIL-MISCELLANEOUS................ 159,013 352,406 33,750 Oracle Corp. (a) -- COMPUTER-SOFTWARE........ 425,625 1,139,062 27,000 Owen Healthcare, Inc.(a) -- HEALTH CARE SERVICES................................... 324,000 567,000 40,000 Parametric Technology Corp. (a) -- COMPUTER-SOFTWARE................... 509,865 1,610,000 10,000 Physician Reliance Network, Inc. (a) (f) -- HEALTH CARE SERVICES................ 140,000 432,500 5,000 Planning Sciences Intl plc ADR(a) -- COMPUTER-SOFTWARE................ 80,000 120,625 15,000 R.P. Scherer Corp. (a) -- DRUGS.............. 600,000 592,500 13,000 Service Corp. International (f) -- BUSINESS SERVICES AND SUPPLIES...................... 500,500 690,625 7,000 SQA, Inc. (a) -- COMPUTER-SOFTWARE........... 112,000 229,250 30,000 Steris Corp. (a) -- MEDICAL SUPPLIES......... 508,843 975,000 1,500 Sykes Enterprises, Inc. (a) -- BUSINESS SERVICES AND SUPPLIES...................... 27,000 53,250 30,000 Synopsys, Inc. (a) -- COMPUTER-SOFTWARE...... 650,949 1,237,500 20,000 Tellabs, Inc. (a) (f) -- TELECOMMUNICATIONS.................. 537,810 1,105,000 20,000 Tidewater, Inc. -- SHIP BUILDING, SHIPPING... 701,560 850,000 20,000 Tommy Hilfiger Corp. (a) -- APPAREL.......... 785,024 910,000 14,000 Total Renal Care Holdings, Inc. (a) -- HEALTH CARE SERVICES.............................. 463,750 535,500 12,000 U.S. Robotics Corp. (a) -- COMPUTER-SOFTWARE................... 515,838 1,878,000 10,000 Viking Office Products, Inc. (a) -- RETAIL-SPECIALTY AND SPECIALTY MAIL ORDER...................................... 298,910 593,750 12,500 Western Atlas, Inc. (a) (f) -- OIL AND GAS FIELD SERVICES............................. 571,163 750,000 23,000 Wisconsin Central Transportation Corp. (a) (f) -- TRANSPORTATION...................... 649,775 1,943,500 15,000 Xilinx, Inc. (a) (f) -- ELECTRONIC-SEMICONDUCTOR AND CAPACITOR.................................. 203,661 553,125 ------------ ------------ 20,902,080 39,523,480 ------------ ------------ TOTAL COMMON STOCKS.......................... $51,144,505 $84,331,824 ------------ ------------ ------------ ------------
PREFERRED STOCKS-3.54%
- -------------------------------------------------------------------------------- Market Shares Cost (b) Value (c) -------- ------------ ------------ AUSTRALIA-0.25% 12,000 News Corp., Ltd. (The) Preferred ADR (f) -- BROADCASTING........................ $ 170,651 $ 244,500 ------------ ------------ GERMANY-3.29% 24,500 SAP AG Systeme Preferred -- COMPUTER-SOFTWARE............. 704,045 3,251,180 ------------ ------------ TOTAL PREFERRED STOCKS....................... 874,696 3,495,680 ------------ ------------ TOTAL EQUITY INVESTMENTS..................... $52,019,201 $87,827,504 ------------ ------------ ------------ ------------
7 FORTIS GLOBAL GROWTH PORTFOLIO Schedule of Investments April 30,1996 (Unaudited) SHORT-TERM INVESTMENTS-11.66%
- -------------------------------------------------------------------------------- Principal Market Amount Value (c) ----------- ------------ DIVERSIFIED FINANCE-2.47% $2,440,000 Associates Corp. Master Variable Rate Note, Current rate -- 5.29%...................... $ 2,440,000 ------------ BANKS-4.85% 4,795,000 First Trust Money Market Variable Rate Time Deposit, Current rate -- 5.14%............. 4,795,000 ------------ U.S. OTHER DIRECT FEDERAL OBLIGATIONS-0.20% 200,000 Federal Farm Credit Bank, 5.30%, 5-6-1996.... 199,826 ------------ U.S. GOVERNMENT AGENCY-4.14% 4,100,000 Federal Home Loan Mortgage Corp., 5.28%, 5-20-1996.................................. 4,088,201 ------------ TOTAL SHORT-TERM INVESTMENTS................. 11,523,027 ------------ TOTAL INVESTMENTS IN SECURITIES (COST: $63,542,228) (B)........................... $99,350,531 ------------ ------------
(a) Presently not paying dividend income. (b) At April 30, 1996, the cost of securities for federal income tax purposes was $63,542,228 and the aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation........................... $36,493,481 Unrealized depreciation........................... (685,178) --------------------------------------------------------------- Net unrealized appreciation....................... $35,808,303 ---------------------------------------------------------------
(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) Common Stock sold within the terms of private placement memorandums, exempt from registration under Section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "accredited investors," pursuant to guidelines adopted by the Board of Directors, these issues are determined to be liquid. (f) Security is fully or partially on loan at April 30, 1996. See Note 1 of accompanying Notes to Financial Statements. (g) Common stock sold within terms of a private placement memorandum, exempt from registration under Section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or to other "accredited investors". These investments have been identified by portfolio management as illiquid securities. The portfolio entered into the following section 144A security transactions: On November 22, 1995, the portfolio acquired 85,000 shares of MOL Magyar Olaj-es Gazipari Rt. GDS with a cost basis of $688,500; on March 19, 1996, the portfolio acquired 3,000 shares of KCI Konecranes International Corp. with a cost basis of $44,214; and on April 22, 1996, the portfolio acquired 23,000 shares of Harvey Nichols with a cost basis of $94,367. The value of these securities at April 30, 1996, is $1,083,986 which represents 1.10% of net assets. 8 FORTIS GLOBAL GROWTH PORTFOLIO Statement of Assets and Liabilities (Unaudited) April 30, 1996
- -------------------------------------------------------------------------------- ASSETS Investments in securities, as detailed in the accompanying schedules, at market (cost $63,542,228) (Note 1)...... $ 99,350,531 Cash on deposit with custodian................................................................................... 19,312 Collateral for securities lending transactions (Note 1).......................................................... 26,842,600 Receivables: Interest and dividends......................................................................................... 79,314 Subscriptions of capital stock................................................................................. 195,409 Deferred registration costs (Note 1)............................................................................. 5,951 Deferred organization cost (Note 1).............................................................................. 8,187 Prepaid expenses................................................................................................. 34,837 ------------ TOTAL ASSETS....................................................................................................... 126,536,141 ------------ LIABILITIES Unrealized depreciation on foreign currency contracts--Net (Notes 1 & 3)......................................... 6,375 Payable upon return of securities loaned (Note 1)................................................................ 26,842,600 Payable for investment securities purchased...................................................................... 763,024 Redemptions of capital stock..................................................................................... 15,963 Payable for investment advisory and management fees (Note 2)..................................................... 76,409 Payable for distribution fees (Note 2)........................................................................... 3,431 Accounts payable and accrued expenses............................................................................ 38,893 ------------ TOTAL LIABILITIES.................................................................................................. 27,746,695 ------------ NET ASSETS Net proceeds of capital stock, par value $.01 per share- authorized 10,000,000,000 shares........................ 67,707,467 Unrealized appreciation of investments in securities and other assets and liabilities denominated in foreign currency....................................................................................................... 35,807,451 Undistributed net investment loss................................................................................ (311,325) Accumulated net realized loss from sale of investments and foreign currency...................................... (4,414,147) ------------ TOTAL NET ASSETS................................................................................................... $ 98,789,446 ------------ SHARES OUTSTANDING AND NET ASSET VALUE PER SHARE: Class A shares (based on net assets of $89,474,143 and 4,302,514 shares outstanding)............................... $20.80 ------------ Class B shares (based on net assets of $3,051,646 and 148,231 shares outstanding).................................. $20.59 ------------ Class C shares (based on net assets of $1,471,364 and 71,416 shares outstanding)................................... $20.60 ------------ Class H shares (based on net assets of $4,792,293 and 232,711 shares outstanding).................................. $20.59 ------------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 9 FORTIS GLOBAL GROWTH PORTFOLIO Statement of Operations (Unaudited) For the Six-Month Period Ended April 30, 1996
- -------------------------------------------------------------------------------- NET INVESTMENT LOSS: Income Interest income................................................................................................ $ 182,695 Dividend income (net of foreign withholding taxes of $25,785).................................................. 156,341 Fee income (Note 1)............................................................................................ 11,783 ----------- Total Income..................................................................................................... 350,819 ----------- Expenses: Investment advisory and management fees (Note 2)............................................................... 403,142 Distribution fees (Class A) (Note 2)........................................................................... 93,733 Distribution fees (Class B) (Note 2)........................................................................... 8,727 Distribution fees (Class C) (Note 2)........................................................................... 4,258 Distribution fees (Class H) (Note 2)........................................................................... 15,224 Legal and auditing fees (Note 2)............................................................................... 26,126 Custodian fees................................................................................................. 20,885 Shareholders' notices and reports.............................................................................. 24,406 Amortization of organization costs (Note 1).................................................................... 8,081 Registration fees (Note 1)..................................................................................... 45,661 Directors' fees and expenses................................................................................... 8,752 Other.......................................................................................................... 3,149 ----------- Total expenses................................................................................................... 662,144 ----------- NET INVESTMENT LOSS................................................................................................ (311,325 ) ----------- REALIZED AND UNREALIZED GAIN (LOSS) (NOTE 1): Net realized gain (loss) from: Investments.................................................................................................... 453,097 Foreign currency transactions.................................................................................. (2,345 ) ----------- NET REALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS.......................................... 450,752 ----------- Net change in unrealized appreciation (depreciation) of: Investments.................................................................................................... 11,319,215 Translation of assets and liabilities denominated in foreign currency.......................................... (2,084 ) ----------- NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS AND FOREIGN CURRENCY........................... 11,317,131 ----------- NET GAIN ON INVESTMENTS AND FOREIGN CURRENCY....................................................................... 11,767,883 ----------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............................................................... $11,456,558 -----------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 10 FORTIS GLOBAL GROWTH PORTFOLIO Statement of Changes in Net Assets
- -------------------------------------------------------------------------------- FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 1996 (UNAUDITED) -------------- OPERATIONS Net investment loss....................................................................................... $ (311,325) Net realized gain (loss) on investments and foreign currency transactions................................. 450,752 Net change in unrealized appreciation of investments and foreign currency................................. 11,317,131 -------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................................................ 11,456,558 -------------- CAPITAL STOCK TRANSACTIONS: Proceeds from sale of shares Class A(868,506 and 996,463 shares)..................................................................... 16,500,250 Class B (98,353 and 58,426 shares)...................................................................... 1,868,354 Class C (49,896 and 24,308 shares)...................................................................... 946,844 Class H (119,447 and 122,300 shares).................................................................... 2,277,817 Less cost of repurchase of shares Class A (311,215 and 986,837 shares).................................................................... (5,899,490) Class B (4,839 and 3,709 shares)........................................................................ (90,502) Class C (2,436 and 352 shares).......................................................................... (47,423) Class H (4,870 and 4,166 shares)........................................................................ (91,588) -------------- NET INCREASE IN NET ASSETS FROM SHARE TRANSACTIONS.......................................................... 15,464,262 -------------- TOTAL INCREASE IN NET ASSETS................................................................................ 26,920,820 NET ASSETS: Beginning of period....................................................................................... 71,868,626 -------------- End of period (includes undistributed net investment loss of $311,325 and $0, respectively)............... $ 98,789,446 -------------- FOR THE YEAR ENDED OCTOBER 31, 1995 -------------- OPERATIONS Net investment loss....................................................................................... $ (337,316) Net realized gain (loss) on investments and foreign currency transactions................................. (3,200,446) Net change in unrealized appreciation of investments and foreign currency................................. 16,489,177 -------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................................................ 12,951,415 -------------- CAPITAL STOCK TRANSACTIONS: Proceeds from sale of shares Class A(868,506 and 996,463 shares)..................................................................... 15,668,875 Class B (98,353 and 58,426 shares)...................................................................... 948,891 Class C (49,896 and 24,308 shares)...................................................................... 417,998 Class H (119,447 and 122,300 shares).................................................................... 2,019,896 Less cost of repurchase of shares Class A (311,215 and 986,837 shares).................................................................... (15,221,519) Class B (4,839 and 3,709 shares)........................................................................ (56,866) Class C (2,436 and 352 shares).......................................................................... (6,157) Class H (4,870 and 4,166 shares)........................................................................ (67,840) -------------- NET INCREASE IN NET ASSETS FROM SHARE TRANSACTIONS.......................................................... 3,703,278 -------------- TOTAL INCREASE IN NET ASSETS................................................................................ 16,654,693 NET ASSETS: Beginning of period....................................................................................... 55,213,933 -------------- End of period (includes undistributed net investment loss of $311,325 and $0, respectively)............... $ 71,868,626 --------------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 11 FORTIS GLOBAL GROWTH PORTFOLIO Notes to Financial Statements - -------------------------------------------------------------------------------- 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: The portfolio is a non-diversified series of Fortis Worldwide Portfolios, Inc., ("Fortis Worldwide"), an open-end management investment company. The primary investment objective of the portfolio is long-term capital appreciation. The portfolio seeks to achieve this objective primarily by investing in a global portfolio of equity securities allocated among diverse international markets. The articles of incorporation of Fortis Worldwide permits the Board of Directors to create additional portfolios in the future. The fund offers Class A, Class B, Class C and Class H shares. The fund began to issue multiple class shares effective November 14, 1994. Class A shares are sold with a front-end sales charge. Class B and H shares are sold without a front-end sales charge and may be subject to a contingent deferred sales charge for six years, and such shares automatically convert to Class A after eight years. Class C shares are sold without a front-end sales charge and may be subject to a contingent deferred sales charge for one year. All classes of shares have identical voting, dividend, liquidation and other rights and the same terms and conditions, except that the level of distribution fees charged differs between classes. Income, expenses (other than expenses incurred under each class's distribution agreement) and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets. The significant accounting policies followed by the fund are summarized as follows: SECURITY VALUATION: Investments in securities traded on U.S. or foreign securities exchanges or on the NASDAQ National Market System are valued at the last reported sales price; listed securities for which no sale was reported are valued at the previous day's last sale price on that exchange; and over-the-counter securities for which no sale was reported are valued at the last reported bid price. Short-term investments with maturities of less than 60 days when acquired, or which subsequently are within 60 days of maturity, are valued at amortized cost. FOREIGN CURRENCY TRANSLATIONS AND FORWARD FOREIGN CURRENCY CONTRACTS: Securities and other assets and liabilities denominated in foreign currencies are translated daily into U.S. dollars at the closing rate of exchange. Foreign currency amounts related to the purchase or sale of securities, income and expenses are translated at the exchange rate on the transaction date. The effect of changes in foreign exchange rates on realized and unrealized security gains or losses is reflected as a component of such gains or losses. In the statement of operations, net realized gains or losses from foreign currency transactions may arise from sales of foreign currency, closed forward contracts, exchange gains or losses realized between the trade date and settlement dates on securities transactions, and other translation gains or losses on dividends, interest income and foreign withholding taxes. The fund may enter into forward foreign currency exchange contracts for operational purposes and to attempt to minimize the risk from adverse exchange rate fluctuations. The net U.S. dollar value of foreign currency underlying all contractual commitments held by the fund and the resulting unrealized appreciation or depreciation are determined using foreign currency exchange rates from an independent pricing service. The fund is subject to the credit risk that the other party will not complete the obligations of the contract. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME: Security transactions are accounted for on the trade date and dividend income is recorded on the ex-dividend 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 six-month period ended April 30, 1996, the cost of purchases and proceeds from sales of securities (other than short-term securities) aggregated $15,780,460 and $8,445,488, respectively. LENDING OF PORTFOLIO SECURITIES: At April 30, 1996 securities valued at $20,009,538 were on loan to brokers from the Fund. For collateral, the Fund's custodian received $26,842,600 in cash which is maintained in a separate account and invested by the custodian in short term investment vehicles. Fee income from securities lending amounted to $11,783 for the six-month period ended April 30, 1996. The risks to the Fund in security lending transactions are that the borrower may not provide additional collateral when required or return the securities when due and that the proceeds from the sale of investments made with cash collateral received will be less than amounts required to be returned to the borrowers. INCOME TAXES: The portfolio intends to qualify, under the Internal Revenue Code, as a regulated investment company and if so qualified, will not have to pay federal income taxes to the extent its taxable net income is distributed. On a calendar year basis, the portfolio intends to distribute substantially all of its net investment income and realized gains, if any, to avoid the payment of federal excise taxes. For federal income tax purposes, the portfolio had a capital loss carryover of $4,864,899 at October 31, 1995, which, if not offset by subsequent capital gains, will expire as follows: 2000................................................ $ 483,191 2001................................................ 125,453 2002................................................ 1,054,200 2003................................................ 3,202,055
It is unlikely the Board of Directors will authorize a distribution of any net realized gains until the available capital loss carryover has been offset or expired. Net Investment Income and net realized gains may differ for financial statement and tax purposes because of wash sale transactions and other book-to-tax differences. The character of distributions made during the year from net investment income or net realized gains may, therefore, differ from their ultimate characterization for federal income tax purposes. Also, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the year that the income or realized gains (losses) were recorded by the fund. INCOME AND CAPITAL GAINS DISTRIBUTIONS: It is the policy of the portfolio to generally pay annual distributions from net investment income, if any, and make distributions of any realized capital gains as required by law. These income and capital gains distributions are distributed on the record date and are reinvested in additional shares of the portfolio at net asset value or payable in cash without any charge to the shareholder. DEFERRED COSTS: Organization costs are amortized over 60 months on a straight-line basis. If any or all of the shares representing initial capital of the portfolio are redeemed by any holder thereof prior to 12 - -------------------------------------------------------------------------------- the end of the amortization period, the proceeds will be reduced by the unamortized organization costs balance in the same proportion as the number of shares redeemed bears to the number of initial shares outstanding immediately preceding the redemption. Registration costs are deferred and charged to income over the registration period. USE OF ESTIMATES: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increase and decrease in net assets from operations during the reporting period. Actual results could differ from those estimates. 2. PAYMENTS TO RELATED PARTIES: Fortis Advisers, Inc., is the investment adviser for the portfolio. Investment advisory and management fees are computed at an annual rate of 1.0% of the first $500 million of average daily net assets, and .9% on assets in excess of $500 million. In addition to the investment advisory and management fee, Classes A, B, C and H pay Fortis Investors, Inc. (the Fund's principal underwriter) distribution fees equal to .25% (Class A) and 1.00% (Class B, C and H) of average daily net assets (of the respective classes) on an annual basis, to be used to compensate those who sell shares of the fund and to pay certain other expenses of selling fund shares. Fortis Investors, Inc. also received sales charges (paid by purchasers or redeemers of the fund's shares) aggregating $322,224 for Class A, $1,172 for Class B, $302 for Class C, and $1,829 for Class H for the six-month period ended April 30, 1996. Legal fees and expenses aggregating $17,175 for the six-month period ended April 30, 1996, were paid to a law firm of which the secretary of the portfolio is a partner. 3. FORWARD FOREIGN CURRENCY CONTRACTS: At April 30, 1996, the Fund entered into forward foreign currency exchange contracts that obligated the portfolio to receive currencies at a specified future date. The unrealized depreciation of $6,375 on these contracts is included in the accompanying financial statements. The terms of the open contracts are as follows:
FORTIS GLOBAL GROWTH PORTFOLIO - ----------------------------------------------------------------------------------------------- U.S. Dollar Currency to U.S. Dollar Value as of Settlement Be Value as of Currency to April 30, Date Delivered Trade Date Be Received 1996 Appreciation Depreciation - ----------------------------------------------------------------------------------------------- May 6, 1996 $400,063 $ 400,063 4,266,989 $ 395,503 $ 0 $ (4,560) U.S. Dollar Austrian Schilling May 13, $198,586 $ 198,586 2,122,909 $ 196,771 $ 0 $ (1,815) 1996 U.S. Dollar Austrian Schilling - ----------------------------------------------------------------------------------------------- TOTAL $ 598,649 $ 598,649 $6,389,898 $ 592,274 $ 0 $ (6,375) - ----------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------- TOTAL DEPRECIATION $ (6,375) ----------- -----------
13 FORTIS GLOBAL GROWTH PORTFOLIO Notes to Financial Statements (continued) - -------------------------------------------------------------------------------- 4. FINANCIAL HIGHLIGHTS Selected per share historical data for each of the Portfolios was as follows:
For the period July 8 1991** Class A (commencement -------------------------------------------------------------- of operations) through For the Year Ended October 31, October 31, -------------------------------------------------------------- ------------- 1996*** 1995 1994 1993 1992 1991 - ------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period......... $ 18.24 $ 14.78 $ 14.42 $ 11.52 $ 10.87 $ 10.05 ---------- ---------- ---------- ---------- ---------- ------------- Operations: Investment income (loss) - net............. (.04) (.09) (.04) (.12) -- -- Net realized and unrealized gain (loss) on investments.............................. 2.60 3.55 .40 3.02 .68 .82 ---------- ---------- ---------- ---------- ---------- ------------- Total from operations........................ 2.56 3.46 .36 2.90 .68 .82 ---------- ---------- ---------- ---------- ---------- ------------- Distributions to shareholders: From investment income - net............... -- -- -- -- (.02) -- From net realized gains.................... -- -- -- -- (.01) -- ---------- ---------- ---------- ---------- ---------- ------------- Distributions to shareholders................ -- -- -- -- (.03) -- ---------- ---------- ---------- ---------- ---------- ------------- Net asset value, end of period............... $ 20.80 $ 18.24 $ 14.78 $ 14.42 $ 11.52 $ 10.87 ---------- ---------- ---------- ---------- ---------- ------------- Total return @............................... 14.04% 23.41% 2.50% 25.17% 6.24% 8.16% Net assets end of period (000s omitted)...... $ 89,474 $ 68,302 $ 55,214 $ 28,226 $ 10,727 $ 6,249 Ratio of expenses to average daily net assets..................................... 1.59%* 1.73% 1.72% 2.19% 2.25% 2.25%* Ratio of net investment income to average daily net assets........................... (.73%)* (.55%) (.35%) (1.01%) (.04%) .30%* Portfolio turnover rate...................... 11% 27% 21% 37% 31% 8% Average Commission Rate Paid{::}............. $ .0496 -- -- -- -- --
* Annualized. ** The portfolio's inception was March 25, 1991, when it was initially capitalized. However, the portfolio's shares did not become effectively registered under the Securities Act of 1933 until July 8, 1991. Supplementary information is not presented for the period from March 25, 1991 through July 7, 1991 as the portfolio's shares were not registered during that period. *** For the six-month period ended April 30, 1996. @ These are the fund's total returns during the period, including reinvestment of all dividend and capital gains distributions without adjustments for sales charge. + For the period from November 14, 1994 (commencement of operations) to October 31, 1995. {::} In accordance with new SEC guidelines under the 1934 Act, beginning in 1996 average commission rate during a funds' fiscal year must be disclosed.
Class B Class C Class H ------------------------ ------------------------ ------------------------ 1996*** 1995+ 1996*** 1995+ 1996*** 1995+ - ----------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period......... $ 18.12 $ 14.60 $ 18.13 $ 14.60 $ 18.12 $ 14.60 ---------- ---------- ---------- ---------- ---------- ---------- Operations: Investment income (loss) - net............. (.04) (.09) (.04) (.09) (.05) (.09) Net realized and unrealized gain (loss) on investments.............................. 2.51 3.61 2.51 3.62 2.52 3.61 ---------- ---------- ---------- ---------- ---------- ---------- Total from operations........................ 2.47 3.52 2.47 3.53 2.47 3.52 ---------- ---------- ---------- ---------- ---------- ---------- Net asset value, end of period............... $ 20.59 $ 18.12 $ 20.60 $ 18.13 $ 20.59 $ 18.12 ---------- ---------- ---------- ---------- ---------- ---------- Total return @............................... 13.63% 24.11% 13.62% 24.18% 13.63% 24.11% Net assets end of period (000s omitted)...... $ 3,052 $ 991 $ 1,471 $ 434 $ 4,792 $ 2,141 Ratio of expenses to average daily net assets..................................... 2.34%* 2.48%* 2.34%* 2.48%* 2.34%* 2.48%* Ratio of net investment income to average daily net assets........................... (1.39%)* (1.42%)* (1.39%)* (1.55%)* (1.41%)* (1.46%)* Portfolio turnover rate...................... 11% 27% 11% 27% 11% 27% Average Commission Rate Paid{::}............. $ .0496 -- $ .0496 -- $ .0496 --
* Annualized. ** The portfolio's inception was March 25, 1991, when it was initially capitalized. However, the portfolio's shares did not become effectively registered under the Securities Act of 1933 until July 8, 1991. Supplementary information is not presented for the period from March 25, 1991 through July 7, 1991 as the portfolio's shares were not registered during that period. *** For the six-month period ended April 30, 1996. @ These are the fund's total returns during the period, including reinvestment of all dividend and capital gains distributions without adjustments for sales charge. + For the period from November 14, 1994 (commencement of operations) to October 31, 1995. {::} In accordance with new SEC guidelines under the 1934 Act, beginning in 1996 average commission rate during a funds' fiscal year must be disclosed. 14 DIRECTORS AND OFFICERS DIRECTORS Richard W. Cutting CPA AND FINANCIAL CONSULTANT Allen R. Freedman CHAIRMAN AND CHIEF EXECUTIVE OFFICER, FORTIS, INC. MANAGING DIRECTOR OF FORTIS INTERNATIONAL, N.V. Dr. Robert M. Gavin PRESIDENT, MACALESTER COLLEGE Benjamin S. Jaffray CHAIRMAN, SHEFFIELD GROUP, LTD. Jean L. King PRESIDENT, COMMUNI-KING Dean C. Kopperud CHIEF EXECUTIVE OFFICER AND DIRECTOR, FORTIS ADVISERS, INC. PRESIDENT AND DIRECTOR, FORTIS INVESTORS, INC. SENIOR VICE PRESIDENT AND DIRECTOR, FORTIS BENEFITS INSURANCE COMPANY, TIME INSURANCE COMPANY Edward M. Mahoney PRIOR TO JANUARY, 1995, CHAIRMAN AND CHIEF EXECUTIVE OFFICER, FORTIS ADVISERS, INC., FORTIS INVESTORS, INC. Robb L. Prince FINANCIAL AND EMPLOYEE BENEFIT CONSULTANT PRIOR TO JULY, 1995, VICE PRESIDENT AND TREASURER, JOSTENS, INC. Leonard J. Santow PRINCIPAL, GRIGGS & SANTOW, INC. Joseph M. Wikler INVESTMENT CONSULTANT AND PRIVATE INVESTOR PRIOR TO JANUARY, 1994, DIRECTOR OF RESEARCH, CHIEF INVESTMENT OFFICER, PRINCIPAL, AND DIRECTOR, THE ROTHSCHILD CO. OFFICERS Dean C. Kopperud PRESIDENT AND DIRECTOR Robert W. Beltz, Jr. VICE PRESIDENT James S. Byrd VICE PRESIDENT Charles J. Dudley VICE PRESIDENT Thomas D. Gualdoni VICE PRESIDENT Maroun M. Hayek VICE PRESIDENT Howard G. Hudson VICE PRESIDENT Robert C. Lindberg VICE PRESIDENT Larry A. Medin VICE PRESIDENT Kevin J. Michels VICE PRESIDENT Jon H. Nicholson VICE PRESIDENT Fred Obser VICE PRESIDENT Dennis M. Ott VICE PRESIDENT David A. Peterson VICE PRESIDENT Nicholas L. M. de Peyster VICE PRESIDENT Stephen M. Poling VICE PRESIDENT Stephen M. Rickert VICE PRESIDENT Richard P. Roche VICE PRESIDENT Anthony J. Rotondi VICE PRESIDENT Rhonda J. Schwartz VICE PRESIDENT Keith R. Thomson VICE PRESIDENT Christopher J. Woods VICE PRESIDENT Gary N. Yalen VICE PRESIDENT Michael J. Radmer SECRETARY Tamara L. Fagely TREASURER INVESTMENT MANAGER, REGISTRAR Fortis Advisers, Inc. AND TRANSFER AGENT BOX 64284, ST. PAUL, MINNESOTA 55164 PRINCIPAL UNDERWRITER Fortis Investors, Inc. BOX 64284, ST. PAUL, MINNESOTA 55164 CUSTODIAN First Bank National Association MINNEAPOLIS, MINNESOTA GENERAL COUNSEL Dorsey & Whitney P.L.L.P. MINNEAPOLIS, MINNESOTA INDEPENDENT AUDITORS KPMG Peat Marwick LLP MINNEAPOLIS, MINNESOTA The use of this material is authorized only when preceded or accompanied by a prospectus. 15 FORTIS FINANCIAL GROUP'S OTHER PRODUCTS AND SERVICES MUTUAL Fortis Bond Funds MONEY FUND FUNDS/PORTFOLIOS U.S. GOVERNMENT CONVENIENT ACCESS TO SECURITIES FUND A BROAD RANGE OF TAX-FREE MINNESOTA SECURITIES PORTFOLIO TAX-FREE NATIONAL PORTFOLIO TAX-FREE NEW YORK PORTFOLIO HIGH YIELD PORTFOLIO Fortis Stock Funds ASSET ALLOCATION PORTFOLIO VALUE FUND GROWTH & INCOME FUND CAPITAL FUND FIDUCIARY FUND GLOBAL GROWTH PORTFOLIO GROWTH FUND CAPITAL APPRECIATION PORTFOLIO FIXED AND VARIABLE Fortis Opportunity Fixed FIXED ACCOUNT ANNUITIES & Variable Annuity MONEY MARKET SUBACCOUNT TAX-DEFERRED Masters Variable Annuity U.S. GOVERNMENT INVESTING SECURITIES SUBACCOUNT DIVERSIFIED INCOME SUBACCOUNT GLOBAL BOND SUBACCOUNT HIGH YIELD SUBACCOUNT ASSET ALLOCATION SUBACCOUNT GLOBAL ASSET ALLOCATION SUBACCOUNT VALUE SUBACCOUNT GROWTH & INCOME SUBACCOUNT S&P 500 INDEX SUBACCOUNT BLUE CHIP STOCK SUBACCOUNT GLOBAL GROWTH SUBACCOUNT GROWTH STOCK SUBACCOUNT INTERNATIONAL STOCK SUBACCOUNT AGGRESSIVE GROWTH SUBACCOUNT Fortune Fixed Annuities SINGLE PREMIUM ANNUITY FLEXIBLE PREMIUM ANNUITY Income Annuities GUARANTEED FOR LIFE GUARANTEED FOR A SPECIFIED PERIOD LIFE AND DISABILITY Wall Street Series FIXED ACCOUNT INSURANCE PROTECTION Variable Universal Life MONEY MARKET SUBACCOUNT AND TAX-DEFERRED Insurance U.S. GOVERNMENT INVESTMENT SECURITIES SUBACCOUNT OPPORTUNITY DIVERSIFIED INCOME SUBACCOUNT GLOBAL BOND SUBACCOUNT HIGH YIELD SUBACCOUNT ASSET ALLOCATION SUBACCOUNT GLOBAL ASSET ALLOCATION SUBACCOUNT VALUE SUBACCOUNT GROWTH & INCOME SUBACCOUNT S&P 500 INDEX SUBACCOUNT BLUE CHIP STOCK SUBACCOUNT GLOBAL GROWTH SUBACCOUNT GROWTH STOCK SUBACCOUNT INTERNATIONAL STOCK SUBACCOUNT AGGRESSIVE GROWTH SUBACCOUNT Adaptable Life Universal Life Disability THE 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 and TIME INSURANCE COMPANY. FOR MORE COMPLETE INFORMATION, INCLUDING CHARGES AND EXPENSES, SEND FOR A PROSPECTUS. WRITE TO: FORTIS INVESTORS, INC., P.O. BOX 64284, ST. PAUL, MN 55164. READ IT CAREFULLY BEFORE INVESTING OR SENDING MONEY. 16 (This page has been left blank intentionally.) -----END PRIVACY-ENHANCED MESSAGE-----