-----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, Df+piOXhRuOD/AfeiX4FHoBGjfBWXxjx4jvM5szkRpoufEk16Y794rSf7nBuByNG F0S300bnq9n0c69vqtvz2Q== 0000912057-99-010935.txt : 19991230 0000912057-99-010935.hdr.sgml : 19991230 ACCESSION NUMBER: 0000912057-99-010935 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19991031 FILED AS OF DATE: 19991229 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: SEC FILE NUMBER: 811-06297 FILM NUMBER: 99783078 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 [LOGO] FORTIS Solid partners, flexible solutions-SM- Global reach, world-class investment potentional Fortis international stock funds annual report October 31, 1999 FORTIS FINANCIAL GROUP [GRAPHIC] FORTIS WORLDWIDE PORTFOLIOS, INC. ANNUAL REPORT CONTENTS LETTER TO SHAREHOLDERS 1 SCHEDULES OF INVESTMENTS GLOBAL GROWTH PORTFOLIO 5 INTERNATIONAL EQUITY PORTFOLIO 8 STATEMENTS OF ASSETS AND LIABILITIES 12 STATEMENTS OF OPERATIONS 13 STATEMENTS OF CHANGES IN NET ASSETS GLOBAL GROWTH PORTFOLIO 14 INTERNATIONAL EQUITY PORTFOLIO 15 NOTES TO FINANCIAL STATEMENTS 16 INDEPENDENT AUDITORS' REPORT 22 BOARD OF DIRECTORS AND OFFICERS 23 OTHER PRODUCTS AND SERVICES 24
- - TOLL-FREE PERSONAL ASSISTANCE - Shareholder Services - (800) 800-2000, 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) 800-2000, 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 each fund's performance during the past twelve months, refer to the Highlights box below. The letter from the portfolio manager and president provides a more detailed analysis of the fund and financial markets. The charts following the letter are useful because they provide more information about your investments. The top holdings chart shows the types of securities in which the fund invests, and the pie chart shows a breakdown of the fund's assets by country. The portfolio changes show the investment decisions your fund manager has made over the period in response to changing market conditions. The performance chart graphically compares the funds' total return performance with a selected investment index. Remember, however, that an index may reflect the performance of securities the fund may not hold. Also, the index does not deduct sales charges, investment advisory fees and other fund expenses, whereas your fund does. Individuals cannot buy an unmanaged index fund without incurring some charges and expenses. This report is just one of several tools you can use to learn more about your investment in the Fortis Family of Mutual Funds. Your investment representative, who understands your personal financial situation, can best explain the features of your investment and how it's designed to help you meet your financial goals. HIGHLIGHTS FOR THE YEAR ENDED OCTOBER 31, 1999
CLASS A CLASS B CLASS C CLASS H -------- -------- -------- -------- GLOBAL GROWTH PORTFOLIO NET ASSET VALUE PER SHARE: Beginning of year......................... $23.18 $22.54 $22.55 $22.54 End of year............................... $31.23 $30.13 $30.19 $30.14 TOTAL RETURN* 34.73% 33.67% 33.88% 33.72% INTERNATIONAL EQUITY PORTFOLIO NET ASSET VALUE PER SHARE: Beginning of year......................... $10.36 $10.33 $10.32 $10.32 End of year............................... $17.14 $17.05 $17.05 $17.03 TOTAL RETURN* 66.90% 65.56% 65.72% 65.53% DISTRIBUTIONS PER SHARE: From net investment income................ $0.097 $0.034 $0.034 $0.034
* These are the fund's total returns during the period, including reinvestment of all dividend and capital gains distributions without adjustments for sales charge.
FORTIS WORLDWIDE PORTFOLIOS DEAR SHAREHOLDER, Thank you for choosing the Fortis Global Growth Portfolio and Fortis International Equity Portfolio to help achieve your financial goals. The Fortis Global Growth Portfolio seeks growth opportunities anywhere in the world, including the United States. The Fortis International Equity Portfolio primarily invests in companies domiciled outside of the United States. During the twelve month period ended October 31, 1999, the Fortis Global Growth Portfolio had a total return of 34.7% for Class A shares before sales charge, which compared to a total return of 25.3% for the Morgan Stanley Capital International World Index (MSCI). Over the same timeframe, the Fortis International Equity Portfolio had a total return of 66.9% for Class A shares before sales charge compared to a total return of 23.3% for the MSCI EAFE Index (Europe, Australia, Far East). The improved performance is related to a number of factors, including the rebound of the Japanese stock market and a broadening of participation in the U.S. market for growth oriented companies. An improved global economic outlook over the past year has helped investors gain confidence in foreign markets. We expect this trend to continue into the year 2000 as the world economy is expected to grow at an above average rate. The Fortis Global Growth Portfolio has traditionally focused on growth companies located anywhere in the world. Our goal has been to expose investors to the world's best positioned and best managed growth companies. Currently the portfolio is well diversified with 91 individual holdings in 18 nations. Foreign holdings represented 56.2% of total net assets; holdings in the United States represented 38.0%. The outperformance of the portfolio last year versus the MSCI Index was due in part to its overweight position in Japan and its relatively heavy exposure to high growth segments of the world's economy. The Fortis International Equity Portfolio has significantly outperformed the EAFE Index, which is the traditional representation of non-North American equity markets. The portfolio's outperformance is due to a substantial overweighting in the Japanese stock market and a significant exposure to companies in growth niches in Japan, Europe, and the United Kingdom. At fiscal year end, the Fortis International Equity Portfolio's asset mix was: Japan 27.2%, Europe 32.4%, United Kingdom 7.5%, and Emerging Markets 5.5%. The portfolio's aim is to provide investors with an international portfolio that is highly diversified in all major economic and investment segments. These include "Blue Chip" investments, growth companies, restructuring situations, and value oriented investments. GLOBAL ECONOMY The outlook for the world's economy has improved quite dramatically relative to a year ago. We are presently in a synchronized global economic recovery. Countries which have been in recessions over the past several years such as Japan, Germany, France, and Korea are now demonstrating positive economic growth. This represents the first time since 1994 when all of the world's major economies were demonstrating growth. The global recovery has encouraged investors to broaden their investment portfolios into areas which have been neglected in recent years. Areas such as commodities, energy, emerging markets, mid-size and smaller growth companies have participated in the global equity rally. A healthy global economy is being led by the United States. The recovery of Asia and Japan, and the pick-up in growth of most European nations is leading to the improved global economic outlook. This improvement will likely continue for some time as global inflationary pressures are still limited. The recent increases in interest rates in Europe, the United Kingdom, the United States, and Australia should temper any inflationary build-up in the world's economy. The biggest risk facing the financial markets would be too strong of a synchronized global recovery in the year 2000. This could force the world's central banks to raise interest rates further in an attempt to slow down economic activity. One year ago, the central banks around the world were reducing interest rates in an attempt to stimulate the world's economy. These numerous interest rate cuts have worked, as evidenced by the strong recoveries in Southeast Asia and Japan. The improved economic outlook in Europe and Asia could lead to a greater focus on these major markets. Globally, there is still excess capacity in certain industries which should help keep inflationary pressures to a minimum. However, the monetary authorities are keeping a close watch on inflation as there are some signs of tightening labor markets in the United States, and certain other nations. The world's currency markets continue, as always, to be volatile. The recent strength of the Japanese yen relative to the U. S. Dollar is a reflection of an improving Japanese economy and the strong liquidity flows into Japan. Overall, the world economy should grow at a healthy rate in the year 2000 with inflation an issue, but not a serious threat. GLOBAL EQUITY MARKETS The outlook for the world's equity markets has improved dramatically since one year ago. The primary reason for the improved outlook is the re-acceleration of economic activity in Europe, Japan, and Southeast Asia. Over the past several years, most of the world's overseas economies have dramatically lagged the growth of the United States. This is now beginning to reverse. Economic strength in the non-U.S. economies should result in increased investment in these overseas stock markets. The strengthening currencies in Southeast Asia and Japan have further encouraged foreign investors into these stock markets. Other major factors influencing future investments will be a continuation of the trend towards corporate restructurings in Europe and Japan. A number of Japanese companies have announced major corporate restructurings over the past several months. This is a major change from the past. Corporate Japan is beginning to embrace a more Western model of capitalism. This will refocus Japanese management on return on investment and shareholder value. Should this restructuring trend continue to gain momentum, foreign investors will likely continue to focus their attention in Japan. Another important factor which has dominated the global equity markets in recent months has been a significant pick-up in merger and acquisition activity. A number of "mega mergers" have taken place in various industries including energy, health care, telecommunications, chemicals, and financial services. This trend towards larger mergers is an attempt to reduce operating costs and develop a global presence. We expect the merger trend to continue as long as the financial markets remain strong. Global investors, in recent months, have increased their appetite for investments in medium sized and smaller companies in most major equity markets. This broadening of participation is a positive factor, however not all stock market segments have participated equally. Technology related companies have been the primary beneficiaries thus far. An improved economic outlook, particularly in Southeast Asia, has been an important variable. Larger blue chip type companies will also prosper in this environment if they are able to demonstrate steady growth. The relatively high valuation levels for both blue chip investments and companies with well above average growth prospects may persist if inflation is maintained at acceptable levels. The Y2K issue has been well documented. We are confident that no lasting serious disruptions will take place. We do anticipate some problems in certain areas of the world's economies. These problems will most likely take place in specific companies which have not properly prepared for the 1 Y2K changeover. It is impossible to predict where these problems will occur; however, they will most likely be temporary in nature. These Y2K issues are serious but are not unresolvable. A diversified portfolio of well-managed companies is the best protection against the uncertainty created by the Y2K issue. EUROPE Over the past several years, many international equity portfolios were substantially overweight in the European stock markets. This was due primarily to a lack of viable alternatives as Japan and the emerging regions were experiencing fairly severe recessions. The outlook for the European economies has improved somewhat over the past several months. Improved economies in the United States, Japan, and Southeast Asia are helping European exports. Corporate restructurings and significant merger activity have also focused investors on certain segments of the European economy. Our focus in Europe has been on industries with above average growth prospects such as telecommunications, cellular phone manufacturing and health care. JAPAN The Japanese equity market has performed strongly in the past year due to the perception that the Japanese economy is in a bottoming process. Numerous Japanese companies have announced major corporate restructuring plans which are intended to reduce costs and improve returns on investment. This has attracted foreign investors into the Japanese stock market. The significant changes occurring in Japan will have major repercussions. The key, however, to Japan's ability to turn its economy around will be a restructuring of its banking system. The government of Japan has taken major steps to improve the economy. These have included significant fiscal stimulation, financial restructuring of the banking industry, substantial individual and corporate tax cuts, tax credits for housing, and an extremely low interest rate environment. These stimulative policies should help stabilize the economy over the next several years. Overall, we continue to feel that Japan has tremendous potential as an investment area as long as the corporate restructurings continue to move forward. Our focus in Japan has been on companies with restructuring efforts and those involved in the explosive growth areas of the "new economy" such as cellular phones, telecommunications, and semiconductor capital equipment. UNITED STATES Over the past several years, the equity market in the United States has outperformed its major counterparts. Weak foreign economies and a strong U.S. dollar attracted investors worldwide to large blue chip type investments in the United States. The global recession outside of the United States resulted in low levels of inflation and interest rates. In a sense, the U.S. was the prime beneficiary of the severe problems experienced in the rest of the world. Improving economies overseas may result in a lower concentration by global investors on "mega cap investments" in the United States. The improved global economic situation is resulting in a broadening of participation. Many medium and small oriented companies are beginning to outperform. This favorable trend should persist as the confidence in the improvement of the world economy grows. Technology related investments have dominated the investment scene in recent months. Many corporate entities are attempting to become more efficient and reduce their costs in order to remain competitive. This has resulted in an unprecedented investment in technology related areas such as telecommunications, networking, electronic commerce, and other internet related areas. This technological explosion will likely continue to be the focal point in the United States. Technology is being exported to overseas economies and will become a key economic driver in the years ahead. U.S. based companies will be major beneficiaries of these powerful investment spending trends. Our focus with the Fortis Global Growth Portfolio has been on large and mid-sized companies which participate in these various growth technology segments. EMERGING MARKETS The emerging regions of the world include Southeast Asia, Central Europe, and Latin America. Our exposure to these regions will remain limited due to the volatile characteristics and economic uncertainties associated with emerging market investing. Longer term, these areas present opportunities. Our focus will be on blue chip type companies domiciled in these regions. The growth prospects longer term are favorable as long as the proper economic and social reforms are implemented. LONG TERM OUTLOOK The longer term outlook for investing in global equities remains favorable. Global economic growth is accelerating, global inflation remains at acceptable levels, and significant corporate restructurings are taking place. The world has embraced capitalism and nations in Europe and Japan are becoming more shareholder aware each year. These are long term trends which should reward shareholders in overseas markets over time. THANK YOU FOR YOUR INVESTMENT We appreciate your investment in the Fortis Global Growth and Fortis International Equity Portfolios. If you have any questions, please call us or your investment professional. Sincerely, /s/ Dean C. Kopperud /s/ Lucinda S. Mezey /s/ James S. Byrd Dean C. Kopperud Lucinda S. Mezey James S. Byrd President Vice President, Vice President Equities PORTFOLIO DIVERSIFICATION BY COUNTRY AS OF 10/31/99 EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC United States 38.0% Japan 24.3% Other 8.1% Cash Equivalents/Receivables 5.7% United Kingdom 5.6% France 4.5% Finland 3.1% Spain 2.6% Germany 2.3% Italy 2.0% Sweden 1.9% Israel 1.9%
TOP 10 EQUITY HOLDINGS AS OF 10/31/99
Percent of Stocks Net Assets - ------------------------------------------------------------------------------------------------ 1. Trend Micro, Inc. (Japan) 3.5% 2. Orange plc (United Kingdom) 3.2% 3. Tellabs, Inc. (United States) 2.9% 4. DSP Communications, Inc. (United States) 2.9% 5. Nokia Oyj (Finland) 2.8% 6. Cisco Systems, Inc. (United States) 2.5% 7. PE Corp-PE Biosystems Group (United States) 2.2% 8. Xilinx, Inc. (United States) 2.0% 9. Cheesecake Factory, Inc. (United States) 2.0% 10. Sunkus & Associates, Inc. (Japan) 1.9%
CLASS B, C AND H AVERAGE ANNUAL TOTAL RETURNS
Since 1 Year Inception+ - ---------------------------------------------------------------------------------------------- Class B shares Diamond +33.67% +15.71% Class B shares Diamond Diamond +30.07% +15.51% Class C shares Diamond +33.88% +15.76% Class C shares Diamond Diamond +32.88% +15.76% Class H shares Diamond +33.72% +15.72% Class H shares Diamond Diamond +30.12% +15.52%
Past performance is not indicative of future performance. Total returns include reinvestment of all dividend and capital gains distributions. The performance of the separate classes (B, C, and H) will vary based on the differences in sales loads and distribution fees paid by shareholders investing in the different classes. Class B and H have a CDSC of 4.00% if redeemed within two years of purchase, 3.00% if redeemed within year three or four, 2.00% if redeemed in year five, and 1.00% if redeemed in year six (with a waiver of 10% of the amount invested) and Class C has a CDSC of 1.00% if redeemed within one year of purchase. Diamond Without CDSC. Diamond Diamond With CDSC. Assumes redemption on October 31, 1999. + Since November 14, 1994 -- Date shares were first offered to the public.
FORTIS GLOBAL GROWTH PORTFOLIO CLASS A VALUE OF $10,000 INVESTED JULY 8, 1991 EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
MSCI WORLD INDEX*** GLOBAL GROWTH PORTFOLIO CLASS A 7/8/91 10,000 9,525 91 10,894 10,302 92 10,385 10,945 93 13,259 13,700 94 14,343 14,042 95 15,781 17,330 96 18,438 20,218 97 21,618 22,726 98 25,009 22,023 99 31,345 29,672 GLOBAL GROWTH PORTFOLIO CLASS A AVERAGE ANNUAL TOTAL RETURN 1 YEAR 5 YEAR SINCE JULY 8, 1991@ WITH SALES CHARGE* +28.33% +15.01% +13.97% WITHOUT SALES CHARGE** +34.73% +16.14% +14.64%
Annual period ended October 31, Past performance is not indicative of future performance. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. * SEC defined total returns, including reinvestment of all dividend and capital gains distributions and the reduction due to the maximum sales charge of 4.75%. ** These are the portfolio's total returns during the period, including reinvestment of all dividend and capital gains distributions without adjustment for sales charge. *** An unmanaged index of the world's major equity markets in U.S. dollars, weighted by stock market value. @ Date shares were first offered to the public.
TEN LARGEST STOCK PORTFOLIO CHANGES FOR THE YEAR ENDED 10/31/99 ADDITIONS: ELIMINATIONS: Advantest Corp. 3Com Corp. Aiful Corp. Covance, Inc. EOG Resources Inc. Gartner Group, Inc. Class A Global TeleSystems Group, Inc. Networks Associates, Inc. Hikari Tsushin, Inc. Novartis AG Murata Manufacturing Co. Ltd. Phoenix AG Nintendo Co. Ltd. Randstad Holdings N.V. Sunkus & Associates, Inc. Service Corp. International Tandy Corp. (with rights) Total Renal Care Holdings, Inc. Trend Micro, Inc. Wolters Kluwer N.V.
3 PORTFOLIO DIVERSIFICATION BY COUNTRY AS OF 10/31/99 EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC Japan 27.2% Cash Equivalents/Receivables 17.1% Other 11.3% United Kingdom 7.5% Netherlands 6.3% France 6.7% Germany 6.0% United States 5.4% Finland 4.1% Italy 3.4% Canada 3.2% Spain 1.8%
TOP 10 EQUITY HOLDINGS AS OF 10/31/99
Percent of Stocks Net Assets - ------------------------------------------------------------------------------------------------ 1. Trend Micro, Inc. (Japan) 4.4% 2. Sonera Oyj (Finland) 2.2% 3. Fujitsu Support and Service, Inc. (Japan) 2.1% 4. Sunkus & Associates, Inc. (Japan) 2.0% 5. Phone.com, Inc. (United States) 2.0% 6. ARM Holdings plc (United Kingdom) 1.9% 7. Hikari Tsushin, Inc. (Japan) 1.8% 8. Advantest Corp. (Japan) 1.3% 9. Taiwan Semiconductor Manufacturing Co. Ltd. ADR (Taiwan) 1.3% 10. Nokia Oyj ADR (Finland) 1.2%
CLASS B, C AND H AVERAGE ANNUAL TOTAL RETURNS
Since 1 Year Inception+ - ---------------------------------------------------------------------------------------------- Class B shares Diamond +65.56% +34.41% Class B shares Diamond Diamond +61.96% +32.63% Class C shares Diamond +65.72% +34.41% Class C shares Diamond Diamond +64.72% +34.41% Class H shares Diamond +65.53% +34.32% Class H shares Diamond Diamond +61.93% +32.53%
Past performance is not indicative of future performance. Total returns include reinvestment of all dividend and capital gains distributions. The performance of the separate classes (B, C, and H) will vary based on the differences in sales loads and distribution fees paid by shareholders investing in the different classes. Class B and H have a CDSC of 4.00% if redeemed within two years of purchase, 3.00% if redeemed in year three or four, 2.00% if redeemed in year five and 1.00% if redeemed in year six (with a waiver of 10% of the amount invested). Class C has a CSDC of 1.00% if redeemed within one year of purchase. Diamond Without CDSC. Diamond Diamond With CDSC. Assumes redemption on October 31, 1999. + Since March 2, 1998 -- Date shares were first offered to the public.
FORTIS INTERNATIONAL EQUITY PORTFOLIO CLASS A VALUE OF $10,000 INVESTED MARCH 2, 1998 EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
MSCI EAFE INDEX*** INTERNATIONAL EQUITY PORTFOLIO CLASS A 3/2/98 $10,000 $9,525 98 $9,887 $9,434 99 $12,198 $15,745 INTERNATIONAL EQUITY PORTFOLIO CLASS A AVERAGE ANNUAL TOTAL RETURN SINCE 1 YEAR MARCH 2, 1998@ With Sales Charge* +58.97% +31.32% Without Sales Charge** +66.90% +35.22%
Annual period ended October 31, Past performance is not indicative of future performance. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. * SEC defined total returns, including reinvestment of all dividend and capital gains distributions and the reduction due to the maximum sales charge of 4.75%. ** These are the portfolio's total returns during the period, including reinvestment of all dividend and capital gains distributions without adjustment for sales charge. *** An unmanaged index of the stocks of Europe, Australia and the Far East. @ Date shares were first offered to the public.
TEN LARGEST STOCK PORTFOLIO CHANGES FOR THE YEAR ENDED 10/31/99 ADDITIONS: ELIMINATIONS: Advantest Corp. Cap Gemini S.A. Hikari Tsushin, Inc. Coflexip S.A. ADR Nippon Telegraph & Telephone Corp. ADR Computacenter plc Nortel Networks Corp. Electricidade de Portugal S.A. Phone.com, Inc. Endesa S.A. ADR Sonera Oyj Glaxo Wellcome plc ADR Sunkus & Associates, Inc. HypoVereinsbank Taiwan Semiconductor Manufacturing Co. Ltd. ADR IHC Caland N.V. Trend Micro, Inc. Megachips Corp. United Pan-Europe Communications N.V. Newbridge Networks Corp. ADR
4 FORTIS WORLDWIDE PORTFOLIOS, INC. GLOBAL GROWTH PORTFOLIO Schedule of Investments October 31, 1999 COMMON STOCKS-92.53% - --------------------------------------------------------------------------------
Market Shares Cost (b) Value (c) - ----------- ----------- ------------ AUSTRALIA-0.50% 84,000 Broken Hill Proprietary Co. Ltd. -- STEEL AND IRON.......... $ 925,599 $ 867,612 ----------- ------------ BRAZIL-0.41% 34,000 Aracruz Celulose S.A. ADR -- FOREST PRODUCTS................ 687,306 697,000 ----------- ------------ FINLAND-3.14% 23,900 KCI Konecranes International plc (e) -- MACHINERY........... 563,329 615,472 42,000 Nokia Oyj -- TELECOMMUNICATION EQUIPMENT.................... 217,264 4,803,549 ----------- ------------ 780,593 5,419,021 ----------- ------------ FRANCE-4.46% 8,000 Axa -- INSURANCE............................................ 923,437 1,127,620 6,000 Dexia France -- BANKS....................................... 753,423 845,085 4,300 Groupe Danone -- FOOD....................................... 782,321 1,096,035 1,580 Promodes -- FOOD............................................ 1,051,925 1,693,953 27,500 Rhone-Poulenc S.A. (Warrants) (a) -- CHEMICALS.............. 93,872 122,031 32,000 Sanofi-Synthelabo S.A. (a) -- DRUGS......................... 643,048 1,410,997 14,000 Sidel S.A. -- MACHINERY..................................... 1,089,395 1,397,963 ----------- ------------ 5,337,421 7,693,684 ----------- ------------ GERMANY-1.12% 12,500 Mannesmann AG -- MACHINERY.................................. 1,192,057 1,927,455 ----------- ------------ HUNGARY-1.40% 35,000 Matav Rt. ADR -- TELEPHONE SERVICES......................... 832,750 1,008,437 70,000 MOL Magyar Olaj-es Gazipari Rt. GDR -- OIL-REFINING......... 567,000 1,409,982 ----------- ------------ 1,399,750 2,418,419 ----------- ------------ ISRAEL-1.85% 38,000 ECI Telecom Ltd. -- TELECOMMUNICATION EQUIPMENT............. 670,707 1,106,750 43,000 Teva Pharmaceutical Industries Ltd. ADR -- DRUGS............ 1,634,437 2,080,125 ----------- ------------ 2,305,144 3,186,875 ----------- ------------ ITALY-2.05% 67,000 Industrie Natuzzi S.p.A. ADR -- FURNITURE................... 1,310,726 1,222,750 45,800 Mondadori (Arnoldo) Editore S.p.A. -- PUBLISHING............ 789,308 857,380 168,200 Telecom Italia S.p.A. -- TELEPHONE SERVICES................. 1,125,574 1,451,488 ----------- ------------ 3,225,608 3,531,618 ----------- ------------ JAPAN-24.26% 21,000 Advantest Corp. -- ELECTRONIC-SEMICONDUCTOR AND CAPACITOR... 1,430,224 3,159,256 14,640 Aiful Corp. -- FINANCIAL SERVICES........................... 846,791 2,272,595 73,000 Canon, Inc. ADR -- OFFICE EQUIPMENT AND SUPPLIES............ 1,473,574 2,075,937 235 East Japan Railway Co. -- RAILROAD AND RAILROAD EQUIPMENT... 1,323,944 1,438,913 125,000 Fuji Bank Ltd. -- BANKS..................................... 760,392 1,712,821 41,000 Fujitsu Ltd. -- ELECTRONIC-SEMICONDUCTOR AND CAPACITOR...... 633,135 1,233,614 3,000 Fujitsu Support and Service, Inc. (e) -- BUSINESS SERVICES.................................................. 93,974 842,277 3,200 Hikari Tsushin, Inc. -- TELECOMMUNICATIONS.................. 1,312,987 2,572,633 15,900 Murata Manufacturing Co. Ltd. -- ELECTRICAL-COMPONENTS AND PARTS..................................................... 1,034,725 2,041,587 87,000 NEC Corp. -- ELECTRONIC COMPONENTS.......................... 1,058,614 1,759,007 13,400 Nintendo Co. Ltd. -- TOYS................................... 1,609,675 2,125,048 217 Nippon Telegraph & Telephone Corp. -- TELEPHONE SERVICES.... 1,832,201 3,326,945 12,000 Orix Corp. -- LEASING....................................... 1,106,409 1,609,812 15,000 Sony Corp. -- ELECTRONIC COMPONENTS......................... 973,223 2,337,102 48,600 Sunkus & Associates, Inc. -- RETAIL-MISCELLANEOUS........... 2,024,338 3,353,009 19,000 Takeda Chemical Industries Ltd. -- DRUGS.................... 770,866 1,090,552 12,600 TDK Corp. -- COMPUTER-HARDWARE.............................. 995,948 1,232,714 20,200 Tokyo Electron Ltd. -- ELECTRONIC-SEMICONDUCTOR AND CAPACITOR................................................. 1,062,208 1,676,236 30,000 Trend Micro, Inc. -- COMPUTER-SOFTWARE...................... 1,545,335 5,950,556 ----------- ------------ 21,888,563 41,810,614 ----------- ------------
5 FORTIS WORLDWIDE PORTFOLIOS, INC. GLOBAL GROWTH PORTFOLIO (CONTINUED) Schedule of Investments October 31, 1999 COMMON STOCKS-CONTINUED - --------------------------------------------------------------------------------
Market Shares Cost (b) Value (c) - ----------- ----------- ------------ MEXICO-0.85% 34,500 Grupo Televisa S.A. GDR (a) -- BROADCASTING................. $1,098,100 $ 1,466,250 ----------- ------------ NETHERLANDS-1.63% 18,000 IHC Caland N.V. -- OIL AND GAS FIELD SERVICES............... 369,274 780,442 60,000 VNU N.V. -- PUBLISHING...................................... 1,395,594 2,027,572 ----------- ------------ 1,764,868 2,808,014 ----------- ------------ NORWAY-1.31% 103,000 Petroleum Geo-Services ADR (a) -- OIL AND GAS FIELD SERVICES.................................................. 1,553,552 1,506,375 70,000 Stolt Comex Seaway S.A. (a) -- OIL AND GAS FIELD SERVICES... 493,694 748,125 ----------- ------------ 2,047,246 2,254,500 ----------- ------------ SOUTH KOREA-0.56% 61,000 Korea Electric Power Corp. ADR -- UTILITIES-ELECTRIC........ 816,362 960,750 ----------- ------------ SPAIN-2.60% 65,000 Repsol S.A. -- OIL-CRUDE PETROLEUM AND GAS.................. 1,030,404 1,339,102 63,036 Telefonica S.A. ADR -- TELEPHONE SERVICES................... 1,381,717 3,147,860 ----------- ------------ 2,412,121 4,486,962 ----------- ------------ SWEDEN-1.92% 77,500 Ericsson (L.M.) Telephone Co. Class B ADR -- TELECOMMUNICATION EQUIPMENT........................ 750,719 3,313,125 ----------- ------------ SWITZERLAND-0.87% 124 Roche Holding AG -- DRUGS................................... 809,161 1,489,270 ----------- ------------ UNITED KINGDOM-5.58% 85,200 Capita Group plc -- BUSINESS SERVICES....................... 185,211 1,131,019 58,000 Dixons Group plc -- RETAIL-ELECTRIC PRODUCTS, RADIO, TV, AUDIO..................................................... 728,446 1,026,907 38,700 Energis plc (a) -- TELEPHONE SERVICES....................... 185,606 1,233,224 225,000 Orange plc (a) -- TELEPHONE SERVICES........................ 707,347 5,589,723 150,000 Telewest Communications plc (with rights) (a) (e) -- TELECOMMUNICATIONS..................... 452,671 649,796 ----------- ------------ 2,259,281 9,630,669 ----------- ------------ UNITED STATES-38.02% 1,500 Akamai Technologies, Inc. (a) -- COMPUTER-SOFTWARE.......... 39,000 217,781 18,000 Alcoa, Inc. -- METALS-MINING AND MISCELLANEOUS.............. 945,329 1,093,500 52,000 Altera Corp. (a) -- ELECTRONIC-SEMICONDUCTOR AND CAPACITOR................................................. 546,969 2,528,500 11,000 Applied Materials, Inc. (a) -- ELECTRONIC-CONTROLS AND EQUIPMENT................................................. 616,344 987,938 34,000 Avant! Corp. (a) -- COMPUTER-SOFTWARE....................... 549,556 437,750 48,750 Baker Hughes, Inc. -- MACHINERY-OIL AND WELL................ 934,074 1,361,953 87,000 Bed Bath & Beyond, Inc. (a) -- RETAIL-SPECIALTY............. 1,073,371 2,898,188 56,000 Brinker International, Inc. (a) -- RESTAURANTS AND FRANCHISING............................................... 1,593,112 1,305,500 19,950 Cardinal Health, Inc. -- HEALTH CARE SERVICES............... 686,723 860,344 14,500 Celera Genomics (a) -- BIOMEDICS, GENETICS RESEARCH AND DEVELOPMENT............................................... 181,790 567,312 110,550 Cheesecake Factory, Inc. (a) -- RESTAURANTS AND FRANCHISING............................................... 2,212,505 3,385,594 32,000 Chiron Corp. (a) -- MEDICAL SUPPLIES........................ 922,801 914,000 58,000 Cisco Systems, Inc. (a) -- COMPUTER-COMMUNICATION EQUIPMENT................................................. 156,639 4,292,000 33,000 Citrix Systems, Inc. (a) -- COMPUTER-SOFTWARE............... 1,103,487 2,116,125 22,000 Comcast Corp. Special Class A (a) -- BROADCASTING........... 683,173 926,750 141,000 DSP Communications, Inc. (a) -- ELECTRONIC COMPONENTS....... 2,653,690 4,961,438 47,000 Enron Corp. -- NATURAL GAS TRANSMISSIONS.................... 1,535,425 1,877,063 87,000 EOG Resources Inc. -- OIL-CRUDE PETROLEUM AND GAS........... 2,029,723 1,810,688 76,000 Global TeleSystems Group, Inc. (a) -- TELECOMMUNICATIONS.... 1,908,460 1,819,250 24,000 Guidant Corp. (a) -- MEDICAL TECHNOLOGY..................... 853,892 1,185,000 43,800 Intuit, Inc. (a) -- COMPUTER-SOFTWARE....................... 676,525 1,275,675 19,000 MediaOne Group, Inc. (a) -- CABLE TELEVISION................ 728,186 1,350,188 26,000 Medtronic, Inc. (with rights) -- MEDICAL TECHNOLOGY......... 738,664 900,250 13,000 Motorola, Inc. -- TELECOMMUNICATION EQUIPMENT............... 898,597 1,266,688 71,100 Outback Steakhouse, Inc. (a) -- RESTAURANTS AND FRANCHISING............................................... 1,684,569 1,635,300 58,000 PE Corp-PE Biosystems Group -- PRECISION INSTRUMENTS-TEST, RESEARCH.................................................. 1,756,274 3,762,750 11,682 Schlumberger Ltd. -- OIL AND GAS FIELD SERVICES............. 423,643 707,491
6 COMMON STOCKS-CONTINUED - --------------------------------------------------------------------------------
Market Shares Cost (b) Value (c) - ----------- ----------- ------------ 15,000 StarMedia Network, Inc. -- COMPUTER-COMMUNICATION EQUIPMENT................................................. $ 225,000 $ 431,250 33,100 Sykes Enterprises, Inc. (a) -- BUSINESS SERVICES............ 679,926 1,021,963 53,000 Synopsys, Inc. (a) -- COMPUTER-SOFTWARE..................... 1,469,280 3,302,563 48,000 Tandy Corp. (with rights) -- RETAIL-SPECIALTY............... 1,857,356 3,021,000 80,000 Tellabs, Inc. (a) -- TELECOMMUNICATION EQUIPMENT............ 537,810 5,060,000 38,000 Tidewater, Inc. -- OIL AND GAS FIELD SERVICES............... 1,065,942 1,140,000 19,000 Univision Communications, Inc. Class A (a) -- BROADCASTING............................... 669,000 1,616,188 44,400 Xilinx, Inc. (a) -- ELECTRONIC-SEMICONDUCTOR AND CAPACITOR................................................. 490,924 3,490,950 ----------- ------------ 35,127,759 65,528,930 ----------- ------------ TOTAL COMMON STOCKS......................................... $84,827,658 $159,490,768 =========== ============
PREFERRED STOCKS-1.72% - --------------------------------------------------------------------------------
Market Shares Cost (b) Value (c) - ----------- ----------- ------------ BRAZIL - 0.50% 11,000 Telecomunicacoes Brasileiras S.A. ADR Preferred -- TELECOMMUNICATIONS.................................... $ 678,256 $ 856,625 ----------- ------------ GERMANY-1.22% 4,900 SAP AG Preferred -- COMPUTER-SOFTWARE...................... 277,461 2,112,690 ----------- ------------ TOTAL PREFERRED STOCKS...................................... 955,717 2,969,315 ----------- ------------ TOTAL LONG-TERM INVESTMENTS................................. $85,783,375 $162,460,083 =========== ============
SHORT-TERM INVESTMENTS-4.47% - --------------------------------------------------------------------------------
Principal Market Amount Value (c) - ----------- ------------ BANKS-2.23% $3,841,287 U.S. Bank N.A. Money Market Variable Rate Time Deposit, Current rate -- 5.21%..................................... $ 3,841,287 ------------ DIVERSIFIED FINANCE-2.24% 3,870,000 Associates Corp. Master Variable Rate Note, Current rate -- 5.18%............................................. 3,870,000 ------------ TOTAL SHORT-TERM INVESTMENTS................................ 7,711,287 ------------ TOTAL INVESTMENTS IN SECURITIES (COST: $93,494,662)(B)...... $170,171,370 ============
(a) Presently not paying dividend income. (b) At October 31, 1999, the cost of securities for federal income tax purposes was $93,513,810 and the aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation..................................... $77,616,433 Unrealized depreciation..................................... (958,873) - ------------------------------------------------------------------------- Net unrealized appreciation................................. $76,657,560 - -------------------------------------------------------------------------
(c) See Note 1 of accompanying Notes to Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. (e) Securities issued within the terms of a private placement memorandum, exempt from registration under Section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or to other "accredited investors". These investments have been identified by portfolio management as illiquid securities:
Date Acquired Shares/Par Security Cost Basis - -------- ---------- -------- ---------- 1998 3,000 Fujitsu Support and Service, Inc. $ 93,974 1996 23,900 KCI Konecranes International plc 563,329 1999 150,000 Telewest Communications plc (with rights) 452,671
The value of these securities at October 31, 1999, was $2,107,545, which represents 1.22% of total net assets. 7 FORTIS WORLDWIDE PORTFOLIOS, INC. INTERNATIONAL EQUITY PORTFOLIO Schedule of Investments October 31, 1999 COMMON STOCKS-81.39% - --------------------------------------------------------------------------------
Market Shares Cost (b) Value (c) - ----------- ----------- ----------- AUSTRALIA-1.13% 6,000 Broken Hill Proprietary Company Ltd. ADR -- MINERALS........ $ 118,297 $ 126,750 2,500 World Equity Benchmark Share-Australia Index Series -- UNIT INVESTMENT TRUST.......................................... 25,100 25,156 ---------- ----------- 143,397 151,906 ---------- ----------- BRAZIL-0.46% 3,000 Aracruz Celulose S.A. ADR -- FOREST PRODUCTS................ 53,242 61,500 ---------- ----------- CANADA-3.17% 11,000 Domtar, Inc. -- PAPER....................................... 101,554 132,742 2,500 Nortel Networks Corp. -- TELECOMMUNICATION EQUIPMENT........ 154,525 154,844 6,000 Precision Drilling Corp. (a) -- OIL AND GAS FIELD SERVICES.................................................. 139,102 139,125 ---------- ----------- 395,181 426,711 ---------- ----------- DENMARK-0.68% 700 Vestas Wind Systems A/S (a)(e) -- MACHINERY................. 28,631 91,558 ---------- ----------- FINLAND-4.14% 12,000 Merita plc Class A -- BANKS................................. 69,333 69,499 1,400 Nokia Oyj ADR -- TELECOMMUNICATION EQUIPMENT................ 50,173 161,787 10,000 Sonera Oyj -- TELECOMMUNICATIONS............................ 256,619 300,089 780 Tietoenator Oyj Abp -- BUSINESS SERVICES.................... 19,768 27,055 ---------- ----------- 395,893 558,430 ---------- ----------- FRANCE-6.68% 4,500 Alcatel ADR -- TELECOMMUNICATION EQUIPMENT.................. 132,864 138,094 1,700 Axa ADR -- INSURANCE........................................ 107,175 118,575 450 Castorama Dubois Investisse -- RETAIL-MISCELLANEOUS......... 92,901 134,709 300 Dexia France -- BANKS....................................... 37,840 42,254 1,000 Equant N.V. (a) -- BUSINESS SERVICES........................ 27,020 97,227 600 Groupe Danone ADR -- FOOD................................... 24,411 30,750 90 Promodes -- FOOD............................................ 60,849 96,491 800 Sanofi-Synthelabo S.A. (a) -- DRUGS......................... 22,534 35,275 400 Sidel S.A. -- MACHINERY..................................... 31,111 39,942 1,300 STMicroelectronics N.V. -- ELECTRONIC-SEMICONDUCTOR AND CAPACITOR................................................. 99,365 118,137 300 Suez Lyonnaise des Eaux S.A. -- UTILITIES-WATER AND SEWER... 45,929 48,403 ---------- ----------- 681,999 899,857 ---------- ----------- GERMANY-5.40% 400 Allianz AG -- INSURANCE..................................... 122,907 121,928 1,300 BASF AG ADR -- CHEMICALS.................................... 54,925 58,685 1,400 Bayer AG ADR -- CHEMICALS................................... 57,750 57,240 120 Celanese AG (a) -- CHEMICALS................................ 1,738 1,867 1,200 Deutsche Bank AG -- BANKS................................... 77,231 85,480 1,700 Deutsche Telekom AG -- TELECOMMUNICATIONS................... 69,641 78,354 3,000 Epcos AG (a) -- ELECTRICAL-COMPONENTS AND PARTS............. 101,472 122,348 1,200 Hoechst AG ADR -- CHEMICALS................................. 48,574 53,100 500 Mannesmann AG -- MACHINERY.................................. 44,608 77,098 800 Siemens AG -- ELECTRONIC-CONTROLS AND EQUIPMENT............. 58,901 71,475 ---------- ----------- 637,747 727,575 ---------- ----------- HONG KONG-0.36% 4,000 World Equity Benchmark Share-Hong Kong Index Series -- UNIT INVESTMENT TRUST.......................................... 40,410 48,000 ---------- ----------- HUNGARY-0.43% 2,000 Matav Rt. ADR -- TELEPHONE SERVICES......................... 53,325 57,625 ---------- ----------- IRELAND-0.93% 30,000 Eircom plc (a) -- TELECOMMUNICATIONS........................ 119,890 125,028 ---------- ----------- ISRAEL-0.36% 1,000 Teva Pharmaceutical Industries Ltd. ADR -- DRUGS............ 39,550 48,375 ---------- -----------
8 COMMON STOCKS-CONTINUED - --------------------------------------------------------------------------------
Market Shares Cost (b) Value (c) - ----------- ----------- ----------- ITALY-3.42% 1,600 Bipop S.p.A. (a) -- FINANCIAL SERVICES...................... $ 75,559 $ 67,691 16,000 Bulgari S.p.A. -- RETAIL-SPECIALTY.......................... 118,561 112,678 8,000 Italcementi S.p.A. -- BUILDING MATERIALS.................... 107,068 100,990 7,500 Mondadori (Arnoldo) Editore S.p.A. -- PUBLISHING............ 119,716 140,401 4,500 Telecom Italia S.p.A. -- TELEPHONE SERVICES................. 32,617 38,833 ---------- ----------- 453,521 460,593 ---------- ----------- JAPAN-27.22% 1,200 Advantest Corp. -- ELECTRONIC-SEMICONDUCTOR AND CAPACITOR... 135,227 180,529 960 Aiful Corp. -- FINANCIAL SERVICES........................... 55,364 149,023 6,000 Bank of Tokyo-Mitsubishi Ltd. -- BANKS...................... 84,515 99,348 2,000 Canon, Inc. ADR -- OFFICE EQUIPMENT AND SUPPLIES............ 43,625 56,875 15 East Japan Railway Co. -- RAILROAD AND RAILROAD EQUIPMENT... 84,507 91,846 4,000 Fuji Bank Ltd. -- BANKS..................................... 24,353 54,810 3,000 Fujitsu Ltd. -- ELECTRONIC-SEMICONDUCTOR AND CAPACITOR...... 46,284 90,264 1,000 Fujitsu Support and Service, Inc. (e) -- BUSINESS SERVICES.................................................. 31,414 280,759 300 Hikari Tsushin, Inc. -- TELECOMMUNICATIONS.................. 123,114 241,184 800 Honda Motor Co. Ltd. ADR -- AUTOMOBILE MANUFACTURERS........ 56,400 67,300 1,000 Internet Initiative Japan, Inc. ADR (a) -- BUSINESS SERVICES.................................................. 23,000 53,750 450 Matsushita Electric Industrial Co. Ltd. ADR -- ELECTRONIC-CONTROLS AND EQUIPMENT.................. 88,974 95,316 1,100 Murata Manufacturing Co. Ltd. -- ELECTRICAL-COMPONENTS AND PARTS..................................................... 71,585 141,242 6,000 NEC Corp. -- ELECTRONIC COMPONENTS.......................... 73,573 121,311 600 Nintendo Co. Ltd. -- TOYS................................... 72,232 95,151 2,024 Nippon Telegraph & Telephone Corp. ADR -- TELECOMMUNICATION EQUIPMENT................................................. 120,665 156,607 1,000 Orix Corp. -- LEASING....................................... 92,193 134,151 3,000 Shin-Etsu Chemical Co. Ltd. -- CHEMICALS.................... 108,455 123,611 800 Sony Corp. ADR -- ELECTRONIC-CONTROLS AND EQUIPMENT......... 90,565 127,800 4,000 Sunkus & Associates, Inc. -- RETAIL-MISCELLANEOUS........... 157,289 275,968 1,000 Takeda Chemical Industries Ltd. -- DRUGS.................... 40,577 57,397 500 TDK Corp. -- COMPUTER-HARDWARE.............................. 39,723 48,917 1,800 Tokyo Electron Ltd. -- ELECTRONIC-SEMICONDUCTOR AND CAPACITOR................................................. 71,955 149,368 3,000 Trend Micro, Inc. -- COMPUTER-SOFTWARE...................... 154,255 595,056 2,500 World Equity Benchmark Share-Japan Index Series -- UNIT INVESTMENT TRUST.......................................... 25,725 37,187 2,000 Yamada Denki Co. Ltd. -- RETAIL-ELECTRIC PRODUCTS, RADIO, TV, AUDIO................................................. 45,274 142,392 ---------- ----------- 1,960,843 3,667,162 ---------- ----------- MEXICO-1.24% 27,000 Cifra S.A. de C.V. (a) -- RETAIL-GROCERY.................... 39,705 39,242 3,000 Grupo Televisa S.A. GDR (a) -- BROADCASTING................. 116,205 127,500 ---------- ----------- 155,910 166,742 ---------- ----------- NETHERLANDS-6.28% 2,000 ASM Lithography Holding N.V. (a) -- BUSINESS SERVICES....... 128,362 145,250 1,000 Getronics N.V. -- BUSINESS SERVICES......................... 40,838 49,822 900 ING Groep N.V. -- INSURANCE................................. 43,099 53,051 1,052 Koninklijke Philips Electronics N.V. ADR -- ELECTRONIC COMPONENTS................................................ 91,773 109,342 2,500 Pakhoed Holding N.V. -- TRANSPORTATION...................... 59,811 69,767 2,300 Royal Dutch Petroleum Co. NY Shares -- OIL-CRUDE PETROLEUM AND GAS................................................... 131,580 137,856 2,000 United Pan-Europe Communications N.V. (a) -- TELECOMMUNICATIONS............................ 65,540 153,671 7,000 Versatel Telecom International N.V. (a) -- TELEPHONE SERVICES.................................................. 73,794 86,821 1,200 VNU N.V. -- PUBLISHING...................................... 36,628 40,551 ---------- ----------- 671,425 846,131 ---------- ----------- RUSSIA-0.25% 2,000 Vimpel-Communications ADR (a) -- TELEPHONE SERVICES......... 29,995 33,750 ---------- ----------- SINGAPORE-0.21% 3,500 World Equity Benchmark Share-Singapore Index Series -- UNIT INVESTMENT TRUST.......................................... 22,890 28,437 ---------- -----------
9 FORTIS WORLDWIDE PORTFOLIOS, INC. INTERNATIONAL EQUITY PORTFOLIO (CONTINUED) Schedule of Investments October 31, 1999 COMMON STOCKS-CONTINUED - --------------------------------------------------------------------------------
Market Shares Cost (b) Value (c) - ----------- ----------- ----------- SOUTH KOREA-0.51% 4,400 Korea Electric Power Corp. ADR -- UTILITIES-ELECTRIC........ $ 60,915 $ 69,300 ---------- ----------- SPAIN-1.81% 2,200 Argentaria S.A. -- BANKS.................................... 44,427 48,792 1,000 Repsol S.A. -- OIL-CRUDE PETROLEUM AND GAS.................. 20,479 20,602 4,000 Repsol S.A. ADR -- OIL-CRUDE PETROLEUM AND GAS.............. 74,144 82,000 1,854 Telefonica S.A. ADR -- TELEPHONE SERVICES................... 73,671 92,584 ---------- ----------- 212,721 243,978 ---------- ----------- SWEDEN-1.11% 3,500 Ericsson (L.M.) Telephone Co. Class B ADR -- TELECOMMUNICATION EQUIPMENT........................ 105,375 149,625 ---------- ----------- SWITZERLAND-1.36% 8 Roche Holding AG -- DRUGS................................... 94,611 96,082 300 UBS AG -- BANKS............................................. 88,662 87,320 ---------- ----------- 183,273 183,402 ---------- ----------- TAIWAN-1.28% 5,000 Taiwan Semiconductor Manufacturing Co. Ltd. ADR (a) -- ELECTRONIC-SEMICONDUCTOR AND CAPACITOR......... 134,603 173,125 ---------- ----------- UNITED KINGDOM-7.52% 9,200 ARM Holdings plc (a) -- ELECTRONIC-SEMICONDUCTOR AND CAPACITOR................................................. 22,333 260,864 604 BP Amoco plc ADR -- OIL-CRUDE PETROLEUM AND GAS............. 23,205 34,881 800 British Telecommunications plc ADR -- TELEPHONE SERVICES.... 139,960 144,000 2,000 Dixons Group plc -- RETAIL-ELECTRIC PRODUCTS, RADIO, TV, AUDIO..................................................... 25,129 35,411 6,000 HSBC Holdings plc -- BANKS.................................. 71,679 72,012 2,800 Lloyds TSB Group plc -- BANKS............................... 37,203 38,640 2,600 National Westminster Bank plc -- BANKS...................... 52,090 58,619 1,500 Pearson plc -- PUBLISHING................................... 20,729 33,450 6,600 Scottish and Southern Energy plc -- UTILITIES-ELECTRIC...... 65,184 62,218 15,000 Telewest Communications plc (with rights) (a) (e) -- TELECOMMUNICATIONS..................... 45,300 64,980 6,932 Unilever plc -- CONSUMER GOODS.............................. 64,385 64,212 3,000 Vodafone AirTouch plc ADR -- TELEPHONE SERVICES............. 96,033 143,813 ---------- ----------- 663,230 1,013,100 ---------- ----------- UNITED STATES-5.44% 900 Comverse Technology, Inc. (a) -- COMPUTER-SOFTWARE.......... 59,963 102,150 3,000 Enron Corp. -- NATURAL GAS TRANSMISSIONS.................... 90,671 119,813 6,000 Global TeleSystems Group, Inc. (a) -- TELECOMMUNICATIONS.... 118,408 143,625 1,300 Phone.com, Inc. (a) -- COMPUTER-SOFTWARE.................... 20,800 267,150 3,500 StarMedia Network, Inc. -- COMPUTER-COMMUNICATION EQUIPMENT................................................. 52,500 100,625 ---------- ----------- 342,342 733,363 ---------- ----------- TOTAL COMMON STOCKS......................................... $7,586,308 $10,965,273 ========== ===========
PREFERRED STOCKS-1.47% - --------------------------------------------------------------------------------
Market Shares Cost (b) Value (c) - ----------- ----------- ----------- BRAZIL-0.83% 7,000 Petroleo Brasileiro S.A. ADR Preferred -- OIL-CRUDE PETROLEUM AND GAS......................................... $ 102,625 $ 111,883 ---------- ----------- GERMANY-0.64% 200 SAP AG Preferred -- COMPUTER-SOFTWARE...................... 81,231 86,232 ---------- ----------- TOTAL PREFERRED STOCKS...................................... 183,856 198,115 ---------- ----------- TOTAL LONG-TERM INVESTMENTS................................. $7,770,164 $11,163,388 ========== ===========
10 SHORT-TERM INVESTMENTS-18.73% - --------------------------------------------------------------------------------
Principal Market Amount Value (c) - ----------- ----------- BANKS-3.91% $ 525,970 U.S. Bank N.A. Money Market Variable Rate Time Deposit, Current rate -- 5.21%..................................... $ 525,970 ----------- U.S. GOVERNMENT AGENCY-11.11% 500,000 Federal Home Loan Mortgage Corp., 5.24% 11-29-1999.......... 497,930 1,000,000 Federal Home Loan Mortgage Corp., 5.30% 11-5-1999........... 999,276 ----------- 1,497,206 ----------- U.S. OTHER DIRECT FEDERAL OBLIGATIONS-3.70% 500,000 Federal Farm Credit Bank, 5.35% 11-18-1999.................. 498,688 ----------- TOTAL SHORT-TERM INVESTMENTS................................ 2,521,864 ----------- TOTAL INVESTMENTS IN SECURITIES (COST: $10,292,028) (B)..... $13,685,252 ===========
(a) Presently not paying dividend income. (b) At October 31, 1999, the cost of securities for federal income tax purposes was $10,292,028 and the aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation..................................... $3,419,486 Unrealized depreciation..................................... (26,262) - ------------------------------------------------------------------------ Net unrealized appreciation................................. $3,393,224 - ------------------------------------------------------------------------
(c) See Note 1 of accompanying Notes to Financial Statement regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of total market value to total net assets. (e) Securities issued within the terms of a private placement memorandum, exempt from registration under Section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or to other "accredited investors". These investments have been identified by portfolio management as illiquid securities:
Date Acquired Shares/Par Security Cost Basis - -------- ---------- -------- ---------- 1998 1,000 Fujitsu Support and Service, Inc. 31,414 1999 15,000 Telewest Communications plc (with rights) 45,300 1998 700 Vestas Wind Systems A/S 28,631
The value of these securities at October 31, 1999, was $437,297 which represents 3.25% of total net assets. 11 FORTIS WORLDWIDE PORTFOLIOS, INC. Statements of Assets and Liabilities October 31, 1999 - --------------------------------------------------------------------------------
GLOBAL INTERNATIONAL GROWTH EQUITY PORTFOLIO PORTFOLIO --------- ------------- ASSETS: Investments in securities, as detailed in the accompanying schedules, at market (cost $93,494,662; $10,292,028) (Note 1)....................................... $170,171,370 $13,685,252 Collateral for securities lending transactions (Note 1).................... 32,438,836 -- Receivables: Investment securities sold............... 2,276,142 318,112 Interest and dividends................... 178,509 8,722 Subscriptions of capital stock........... -- 29,642 Deferred registration costs (Note 1)....... 13,670 8,722 Deferred organization costs (Note 1)....... -- 16,144 Prepaid expenses........................... -- 10,468 ------------ ----------- TOTAL ASSETS................................. 205,078,527 14,077,062 ------------ ----------- LIABILITIES: Unrealized depreciation on forward foreign currency contracts-net (Note 1 and 3).... 4,063 478 Payable upon return of securities loaned (Note 1)................................. 32,438,836 -- Payable for investment securities purchased................................ 39,000 580,257 Redemptions of capital stock............... 19,477 -- Payable for investment advisory and management fees (Note 2)................. 139,536 10,459 Payable for distribution fees (Note 2)..... 7,475 623 Accounts payable and accrued expenses...... 71,048 13,430 ------------ ----------- TOTAL LIABILITIES............................ 32,719,435 605,247 ------------ ----------- NET ASSETS: Net proceeds of capital stock, par value $.01 per share-authorized 10,000,000,000; 10,000,000,000 shares; respectively...... 75,833,715 9,956,850 Unrealized appreciation of investments in securities and the translation of assets and liabilities denominated in foreign currency................................. 76,675,464 3,393,423 Accumulated net realized gain from the sale of investments and foreign currency transactions............................. 19,849,913 121,542 ------------ ----------- TOTAL NET ASSETS............................. $172,359,092 $13,471,815 ------------ ----------- SHARES OUTSTANDING AND NET ASSET VALUE PER SHARE: Class A shares (based on net assets of $130,195,214 and $10,266,995; respectively and 4,169,414 and 599,179 shares outstanding; respectively)................. $31.23 $17.14 ------------ ----------- Class B shares (based on net assets of $14,766,030 and $959,273; respectively and 490,065 and 56,278 shares outstanding; respectively).............................. $30.13 $17.05 ------------ ----------- Class C shares (based on net assets of $5,375,240 and $596,934; respectively and 178,076 and 35,021 shares outstanding; respectively).............................. $30.19 $17.05 ------------ ----------- Class H shares (based on net assets of $22,022,608 and $1,648,613; respectively and 730,729 and 96,813 shares outstanding; respectively).............................. $30.14 $17.03 ------------ -----------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 12 FORTIS WORLDWIDE PORTFOLIOS, INC. Statements of Operations For the year ended October 31, 1999 - --------------------------------------------------------------------------------
GLOBAL INTERNATIONAL GROWTH EQUITY PORTFOLIO PORTFOLIO --------- ------------- NET INVESTMENT LOSS Income: Interest income.......................... $ 413,398 $ 43,161 Dividend income (Net of foreign witholding taxes of $77,781 and $6,171, respectively)........................... 837,445 58,577 Fee income (Note 1)...................... 33,300 -- ----------- ---------- Total income............................... 1,284,143 101,738 ----------- ---------- Expenses: Investment advisory and management fees (Note 2)................................ 1,570,656 66,564 Distribution fees (Class A) (Note 2)..... 297,836 13,869 Distribution fees (Class B) (Note 2)..... 129,172 3,820 Distribution fees (Class C) (Note 2)..... 50,706 1,287 Distribution fees (Class H) (Note 2)..... 199,431 5,983 Registration fees (Note 2)............... 41,329 48,331 Shareholders' notices and reports........ 105,400 2,600 Legal and auditing fees.................. 27,000 13,100 Custodian fees........................... 42,500 9,300 Directors' fees and expenses............. 21,800 630 Amortization of organization costs (Note 1)...................................... -- 4,843 Other.................................... 11,642 323 ----------- ---------- Total expenses............................. 2,497,472 170,650 Less waived and reimbursed expenses (Note 2)...................................... (5,868) (49,174) ----------- ---------- Net expenses............................... 2,491,604 121,476 ----------- ---------- NET INVESTMENT LOSS.......................... (1,207,461) (19,738) ----------- ---------- REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND FOREIGN CURRENCY (NOTE 1): Net realized gain (loss) from: Investments.............................. 20,967,969 224,593 Foreign currency transactions............ (8,000) (692) ----------- ---------- NET REALIZED GAIN ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS...................... 20,959,969 223,901 ----------- ---------- Net change in unrealized appreciation (depreciation) from: Investments.............................. 27,677,283 3,367,401 Translation of assets and liabilities denominated in foreign currency......... (7,953) 9 ----------- ---------- NET CHANGE IN UNREALIZED APPRECIATION ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS............................... 27,669,330 3,367,410 ----------- ---------- NET GAIN ON INVESTMENTS AND FOREIGN CURRENCY................................... 48,629,299 3,591,311 ----------- ---------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................................. $47,421,838 $3,571,573 =========== ==========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 13 FORTIS WORLDWIDE PORTFOLIOS, INC. Statements of Changes in Net Assets GLOBAL GROWTH PORTFOLIO - --------------------------------------------------------------------------------
FOR THE FOR THE YEAR ENDED YEAR ENDED OCTOBER 31, 1999 OCTOBER 31, 1998 ---------------- ---------------- OPERATIONS: Net investment loss........................ $ (1,207,461) $ (965,929) Net realized gain on investments and foreign currency transactions............ 20,959,969 59,734 Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions.................... 27,669,330 (3,486,892) -------------- ------------ NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.................. 47,421,838 (4,393,087) -------------- ------------ CAPITAL STOCK TRANSACTIONS: Proceeds from sale of shares Class A (4,879,613 and 1,552,939 shares)................................. 127,633,641 36,123,386 Class B (83,217 and 131,138 shares)...... 2,157,182 3,180,889 Class C (1,178,211 and 226,311 shares)... 31,361,408 5,083,375 Class H (98,991 and 233,363 shares)...... 2,541,509 5,638,972 Less cost of repurchase of shares Class A (5,488,888 and 2,011,444 shares)................................. (144,495,487) (47,665,203) Class B (111,406 and 101,731 shares)..... (2,845,259) (2,447,446) Class C (1,222,259 and 203,240 shares)... (32,536,494) (4,576,747) Class H (190,306 and 209,304 shares)..... (4,871,082) (5,020,976) -------------- ------------ NET DECREASE IN NET ASSETS FROM SHARE TRANSACTIONS............................... (21,054,582) (9,683,750) -------------- ------------ TOTAL INCREASE (DECREASE) IN NET ASSETS...... 26,367,256 (14,076,837) -------------- ------------ NET ASSETS: Beginning of year.......................... 145,991,836 160,068,673 -------------- ------------ End of year................................ $ 172,359,092 $145,991,836 ============== ============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 14 FORTIS WORLDWIDE PORTFOLIOS, INC. Statements of Changes in Net Assets INTERNATIONAL EQUITY PORTFOLIO - --------------------------------------------------------------------------------
FOR THE PERIOD FOR THE JANUARY 27,1998 YEAR ENDED (INCEPTION) TO OCTOBER 31, 1999 OCTOBER 31, 1998 ---------------- ---------------- OPERATIONS: Net investment income (loss)............... $ (19,738) $ 14,336 Net realized gain (loss) on investments and foreign currency transactions............ 223,901 (96,045) Net change in unrealized appreciation of investments and foreign currency transactions............................. 3,367,410 26,013 ----------- ---------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.................. 3,571,573 (55,696) ----------- ---------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class A.................................... (32,918) -- Class B.................................... (483) -- Class C.................................... (104) -- Class H.................................... (977) -- ----------- ---------- TOTAL DISTRIBUTIONS TO SHAREHOLDERS.......... (34,482) -- ----------- ---------- CAPITAL STOCK TRANSACTIONS: Proceeds from sale of shares Class A (546,092 and 387,353 shares)..... 7,678,118 4,043,736 Class B (50,148 and 19,009 shares)....... 726,902 211,529 Class C (34,331 and 7,175 shares)........ 516,579 71,961 Class H (77,598 and 29,140 shares)....... 1,142,843 319,091 Proceeds from shares issued as a result of reinvested dividends Class A (2,974 and 0 shares)............. 32,865 -- Class B (43 and 0 shares)................ 483 -- Class C (9 and 0 shares)................. 104 -- Class H (88 and 0 shares)................ 973 -- Less cost of repurchase of shares Class A (274,307 and 62,933 shares)...... (3,733,662) (655,273) Class B (7,802 and 5,120 shares)......... (117,721) (54,231) Class C (2,320 and 4,174 shares)......... (29,273) (41,910) Class H (6,764 and 3,249 shares)......... (87,457) (35,237) ----------- ---------- NET INCREASE IN NET ASSETS FROM SHARE TRANSACTIONS............................... 6,130,754 3,859,666 ----------- ---------- TOTAL INCREASE IN NET ASSETS................. 9,667,845 3,803,970 ----------- ---------- NET ASSETS: Beginning of period........................ 3,803,970 -- ----------- ---------- End of period (includes undistributed net investment income of $0 and $32,440, respectively)............................ $13,471,815 $3,803,970 =========== ==========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 15 FORTIS WORLDWIDE PORTFOLIOS, INC. Notes to Financial Statements - -------------------------------------------------------------------------------- 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: The portfolios are non-diversified series of Fortis Worldwide Portfolios, Inc., ("Fortis Worldwide"), an open-end management investment company. The primary investment objective of each of the portfolios is long-term capital appreciation, with current income as a secondary objective. The Global Growth Portfolio ("Global Growth") seeks to achieve its objective primarily by investing in a global portfolio of equity securities, allocated among the markets of the U.S. and other, possibly diverse, countries and regions of the world. The International Equity Portfolio ("International Equity") seeks to achieve its objective by investing primarily in equity securities of non-U.S. companies. The articles of incorporation of Fortis Worldwide Portfolios, Inc. permits the Board of Directors to create additional portfolios in the future. The portfolios offer Class A, Class B, Class C and Class H shares. The Global Growth Portfolio began to issue multiple class shares effective November 14, 1994. The inception of International Equity Portfolio was January 27, 1998, and the date shares were first offered to the public was March 2, 1998. Class A shares are sold with a front-end sales charge. Class B and H shares are sold without a front-end sales charge and may be subject to a contingent deferred sales charge for six years, and such shares automatically convert to Class A after eight years. Class C shares are sold without a front-end sales charge and may be subject to a contingent deferred sales charge for one year. All classes of shares have identical voting, dividend, liquidation and other rights and the same terms and conditions, except that the level of distribution fees charged differs between classes. Income, expenses (other than expenses incurred under each class's distribution agreement) and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets. The significant accounting policies followed by the portfolios are summarized as follows: SECURITY VALUATION: Investments in securities traded on U.S. or foreign securities exchanges or on the NASDAQ National Market System are valued at the last reported sales price. Securities for which over-the-counter market quotations are readily available are valued on the basis of the last current bid price. An outside pricing service may be utilized to provide such valuations. Securities for which quotations are not readily available are valued at fair value as determined in good faith by management under supervision of the Board of Directors. Short-term investments, with maturities of less than 60 days when acquired, or which subsequently are within 60 days of maturity, are valued at amortized cost. FOREIGN CURRENCY TRANSLATIONS AND FORWARD FOREIGN CURRENCY CONTRACTS: Securities and other assets and liabilities denominated in foreign currencies are translated daily into U.S. dollars at the closing rate of exchange. Foreign currency amounts related to the purchase or sale of securities, income and expenses are translated at the exchange rate on the transaction date. The effect of changes in foreign exchange rates on realized and unrealized security gains or losses is reflected as a component of such gains or losses. In the statement of operations, net realized gains or losses from foreign currency transactions may arise from sales of foreign currency, closed forward contracts, exchange gains or losses realized between the trade date and settlement dates on security transactions, and other translation gains or losses on dividends, interest income and foreign withholding taxes. The portfolios may enter into forward foreign currency exchange contracts for operational purposes and to attempt to minimize the risk from adverse exchange rate fluctuations. The net U.S. dollar value of foreign currency underlying all contractual commitments held by the portfolios and the resulting unrealized appreciation or depreciation are determined using foreign currency exchange rates from an independent pricing service. The portfolios are subject to the credit risk that the other party will not complete the obligations of the contract. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME: Security transactions are accounted for on the trade date and dividend income is recorded on the ex-date or upon receipt of ex-dividend notification in the case of certain foreign securities. Interest income is recorded on the accrual basis. Realized security gains and losses are determined using the identified cost method. For the year ended October 31, 1999, the cost of purchases and proceeds from sales of securities (other than short-term securities) aggregated $72,124,349 and $90,323,295 for Global Growth Portfolio; and $8,353,818 and $3,667,973 for International Equity Portfolio, respectively. LENDING OF PORTFOLIO SECURITIES: At October 31, 1999, securities valued at $32,220,854 were on loan to brokers from the Global Growth Portfolio. For collateral, the Global Growth Portfolio's custodian received $32,438,836 in cash which is maintained in a separate account and invested in short term investment vehicles. Fee income from securities lending amounted to $33,300 for the year ended October 31, 1999. The risks to the portfolios in security lending transactions are that the borrower may not provide additional collateral when required or return the securities when due and that the proceeds from the sale of investments made with cash collateral received will be less than amounts required to be returned to the borrowers. FEDERAL TAXES: The portfolios intend to qualify, under the Internal Revenue Code, as regulated investment companies and if so qualified, will not have to pay federal income taxes to the extent its taxable net income is distributed. On a calendar year basis, each portfolio intends to distribute substantially all of its net investment income and realized gains, if any, to avoid the payment of federal excise taxes. Net investment income and net realized gains may differ for financial statement and tax purposes because of foreign exchange gains and losses, treatment of net investment losses and other book-to-tax differences. The character of distributions made during the year from net investment income or net realized gains may, therefore, differ from their ultimate characterization for federal income tax purposes. Also, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the year that the income or realized gains (losses) were recorded by the portfolios. 16 - -------------------------------------------------------------------------------- On the Statement of Assets and Liabilities, due to permanent book-to-tax differences, accumulated net realized gain (loss) and undistributed net investment income have been increased (decreased), resulting in a net reclassification adjustment to reduce paid-in-capital by the following:
Undistributed Net Accumulated Investment Paid-in- Net Realized Income Capital Gains ---------------------------------------------------------------------------------------------- Global Growth Portfolio...................... $1,207,461 $(1,215,461) $8,000 International Equity Portfolio............... $ 21,780 $(15,446) $(6,334)
INCOME AND CAPITAL GAINS DISTRIBUTIONS: It is the policy of the portfolios to generally pay annual distributions from net investment income, if any, and make distributions of any realized capital gains as required by law. These income and capital gains distributions are distributed on the record date and are reinvested in additional shares of the portfolio at net asset value or payable in cash without any charge to the shareholder. DEFERRED COSTS: Registration costs are deferred and charged to income over the registration period. Organizational costs were incurred with the commencement of operations of the International Equity Portfolio. These costs are being amortized over 60 months on a straight line basis. ILLIQUID SECURITIES: At October 31, 1999, investments in securities for the funds included issues that are illiquid. Global Growth and International Equity currently limit investments in illiquid securities to 15% of total net assets, at market value, at date of purchase. The aggregate values of such securities at October 31, 1999, were $2,107,545 for Global Growth and $437,297 for International Equity which represents 1.22% and 3.25% of net assets, respectively. Pursuant to guidelines adopted by the Board of Directors, certain unregistered securities are determined to be liquid and are not included within the percent limitations specified above. USE OF ESTIMATES: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increase and decrease in net assets from operations during the reporting period. Actual results could differ from those estimates. BANK BORROWINGS: Several Fortis Funds including the Global Growth Portfolio and International Equity Portfolio have a revolving credit agreement with Norwest Bank Minnesota N.A., whereby the portfolios are permitted to have a bank borrowing for temporary and emergency purposes to meet large redemption requests by shareholders; and cover securities purchased when matched or when earlier trades have failed. The agreement, which enables the portfolios to participate with other Fortis Funds, permits borrowings up to $25 million, collectively. Interest is expensed to each participating fund based on its borrowings and will be calculated at the borrowers option of: 1) the Prime Index; 2) the Federal Funds rate plus a Margin of 37.5 basis points, or; 3) the Libor rate plus a "Margin" of 37.5 basis points. The Prime index is defined as the higher of: A) the rate that Norwest Bank Minnesota N.A. announces from time to time as its prime rate or B) the Federal Funds rate plus 50 basis points. Each portfolio pays a commitment fee equal to its pro rata share of the amount of the credit facility at a rate of 0.08% per annum. The Global Growth and International Equity Portfolios had no borrowings during the year ended October 31, 1999. OTHER: At October 31, 1999 Fortis Advisors, Inc. owned 210,804 shares of the International Equity Portfolio. 2. PAYMENTS TO RELATED PARTIES: Fortis Advisers, Inc., is the investment adviser for the portfolios. Investment advisory and management fees are computed at an annual rate of 1.0% of the first $500 million of average daily net assets, and .9% on assets in excess of $500 million for the portfolios. In addition to the investment advisory and management fee, Classes A, B, C and H pay Fortis Investors, Inc. (the Funds' principal underwriter) distribution fees equal to .25% (Class A) and 1.00% (Class B, C and H) of average daily net assets (of the respective classes of each of the portfolios) on an annual basis, to be used to compensate those who sell shares of the fund and to pay certain other expenses of selling fund shares. Fortis Investors, Inc. also received sales charges (paid by purchasers or redeemers of the funds' shares) aggregating $271,495 and $81,717 for Class A, $35,915 and $1,467 for Class B, $1,484 and $80 for Class C, and $71,045 and $1,651 for Class H for the Global Growth and International Equity Portfolios, respectively, for the year ended October 31, 1999. Advisers has waived expenses for 12b-1 fees charged in excess of National Association of Securities Dealers limitations. For the year ended October 31, 1999, Advisers waived $5,868 for Class C shares. Advisers has voluntarily undertaken to limit annual expenses for International Equity (exclusive of interest, taxes, brokerage commissions and non-recurring extraordinary charges and expenses) commencing March 2, 1998 to 1.70% of average daily net assets for Class A, and 2.45% for Classes B, C and H. For the year ended October 31, 1999, Advisers reimbursed the portfolio $49,174. Legal fees and expenses aggregating $7,000 and $200 for the Global Growth and International Equity portfolios, respectively, for the year ended October 31, 1999, were paid to a law firm of which the secretary of the portfolios is a partner. 17 FORTIS WORLDWIDE PORTFOLIOS, INC. Notes to Financial Statements (continued) - -------------------------------------------------------------------------------- 3. FORWARD FOREIGN CURRENCY CONTRACTS: At October 31, 1999, the portfolios entered into forward foreign currency exchange contracts that obligated the portfolios to receive currencies at a specified future date. The unrealized depreciation of $4,063 and $478 for Global Growth and International Equity Portfolio on these contracts is included in the accompanying financial statements. The terms of the open contracts are as follows:
GLOBAL GROWTH PORTFOLIO ---------------------------------------------------------------------------------------------------------------------------- Currency U.S. Dollar Value Currency U.S. Dollar Value Appreciation/ Settle Date To Be Delivered As Of October 31, 1999 To Be Received As Of October 31, 1999 (Depreciation) ---------------------------------------------------------------------------------------------------------------------------- November 2, 1999 343,428 $ 360,978 359,569 $ 359,569 $(1,409) Euro U.S.Dollar November 3, 1999 415,720 436,963 435,259 435,259 (1,704) Euro U.S.Dollar November 5, 1999 237,557 249,696 248,746 248,746 (950) Euro U.S.Dollar --------------------- --------------------- -------------- $ 1,047,637 $ 1,043,574 $(4,063) --------------------- --------------------- --------------
INTERNATIONAL EQUITY PORTFOLIO ----------------------------------------------------------------------------------------------------------------------------- Currency U.S. Dollar Value Currency U.S. Dollar Value Appreciation/ Settle Date To Be Delivered As Of October 31, 1999 To Be Received As Of October 31, 1999 (Depreciation) ----------------------------------------------------------------------------------------------------------------------------- November 2, 1999 40,403 $ 42,468 42,343 $ 42,343 $(125) Euro U.S. Dollar November 3, 1999 69,436 72,984 72,721 72,721 (263) Euro U.S. Dollar November 3, 1999 33,759 33,759 49,625 33,738 (21) U.S. Dollar Canadian Dollar November 5, 1999 23,756 24,970 24,901 24,901 (69) Euro U.S. Dollar --------------------- --------------------- -------------- $ 174,181 $ 173,703 $(478) --------------------- --------------------- --------------
- -------------------------------------------------------------------------------- 4. FINANCIAL HIGHLIGHTS: Selected per share historical data for each of the portfolios was as follows:
Class A --------------------------------------------------- Year Ended October 31, --------------------------------------------------- GLOBAL GROWTH PORTFOLIO 1999 1998 1997 1996 1995 - ---------------------------------------------------------------------------------------------- Net asset value, beginning of year...... $ 23.18 $ 23.92 $ 21.28 $ 18.24 $ 14.78 -------- -------- -------- -------- ------- Operations: Investment loss - net................. (.17) (.12) (.07) (.06) (.09) Net realized and unrealized gain (loss) on investments and foreign currency transactions............... 8.22 (.62) 2.71 3.10 3.55 -------- -------- -------- -------- ------- Total from operations................... 8.05 (.74) 2.64 3.04 3.46 -------- -------- -------- -------- ------- Net asset value, end of year............ $ 31.23 $ 23.18 $ 23.92 $ 21.28 $ 18.24 -------- -------- -------- -------- ------- Total return @.......................... 34.73% (3.09%) 12.41% 16.67% 23.41% Net assets end of year (000s omitted)... $130,195 $110,772 $125,268 $107,607 $68,302 Ratio of expenses to average daily net assets................................ 1.41% 1.42% 1.44% 1.51% 1.73% Ratio of net investment income to average daily net assets.............. (.60%) (.44%) (.29%) (.33%) (.55%) Portfolio turnover rate................. 49% 29% 30% 18% 27%
18 - -------------------------------------------------------------------------------- 4. FINANCIAL HIGHLIGHTS (continued):
Class B --------------------------------------------- Year Ended October 31, --------------------------------------------- GLOBAL GROWTH PORTFOLIO 1999 1998 1997 1996 1995+ - ---------------------------------------------------------------------------------------- Net asset value, beginning of year...... $ 22.54 $ 23.42 $ 20.98 $18.12 $14.60 ------- ------- ------- ------ ------ Operations: Investment loss - net................. (.63) (.26) (.27) (.24) (.09) Net realized and unrealized gain (loss) on investments and foreign currency transactions............... 8.22 (.62) 2.71 3.10 3.61 ------- ------- ------- ------ ------ Total from operations................... 7.59 (.88) 2.44 2.86 3.52 ------- ------- ------- ------ ------ Net asset value, end of year............ $ 30.13 $ 22.54 $ 23.42 $20.98 $18.12 ------- ------- ------- ------ ------ Total return @.......................... 33.67% (3.76%) 11.63% 15.78% 24.11% Net assets end of year (000s omitted)... $14,766 $11,680 $11,446 $5,735 $ 991 Ratio of expenses to average daily net assets................................ 2.16% 2.17% 2.19% 2.26% 2.48%* Ratio of net investment income to average daily net assets.............. (1.35%) (1.19%) (1.03%) (.99%) (1.42%)* Portfolio turnover rate................. 49% 29% 30% 18% 27%
Class C ------------------------------------------ Year Ended October 31, ------------------------------------------ GLOBAL GROWTH PORTFOLIO 1999 1998 1997 1996 1995+ - ------------------------------------------------------------------------------------- Net asset value, beginning of year...... $22.55 $23.43 $21.00 $18.13 $14.60 ------ ------ ------ ------ ------ Operations: Investment loss - net................. (.58) (.26) (.28) (.23) (.09) Net realized and unrealized gain (loss) on investments and foreign currency transactions............... 8.22 (.62) 2.71 3.10 3.62 ------ ------ ------ ------ ------ Total from operations................... 7.64 (.88) 2.43 2.87 3.53 ------ ------ ------ ------ ------ Net asset value, end of year............ $30.19 $22.55 $23.43 $21.00 $18.13 ------ ------ ------ ------ ------ Total return @.......................... 33.88% (3.76%) 11.57% 15.83% 24.18% Net assets end of year (000s omitted)... $5,375 $5,009 $4,664 $3,087 $ 434 Ratio of expenses to average daily net assets................................ 2.04%(A) 2.17% 2.19% 2.26% 2.48%* Ratio of net investment income to average daily net assets.............. (1.23%)(A) (1.20%) (1.04%) (.99%) (1.55%)* Portfolio turnover rate................. 49% 29% 30% 18% 27%
Class H ---------------------------------------------- Year Ended October 31, ---------------------------------------------- GLOBAL GROWTH PORTFOLIO 1999 1998 1997 1996 1995+ - ----------------------------------------------------------------------------------------- Net asset value, beginning of year...... $ 22.54 $ 23.42 $ 20.99 $ 18.12 $14.60 ------- ------- ------- ------- ------ Operations: Investment loss - net................. (.62) (.26) (.28) (.23) (.09) Net realized and unrealized gain (loss) on investments and foreign currency transactions............... 8.22 (.62) 2.71 3.10 3.61 ------- ------- ------- ------- ------ Total from operations................... 7.60 (.88) 2.43 2.87 3.52 ------- ------- ------- ------- ------ Net asset value, end of year............ $ 30.14 $ 22.54 $ 23.42 $ 20.99 $18.12 ------- ------- ------- ------- ------ Total return @.......................... 33.72% (3.76%) 11.58% 15.84% 24.11% Net assets end of year (000s omitted)... $22,023 $18,531 $18,690 $10,765 $2,141 Ratio of expenses to average daily net assets................................ 2.16% 2.17% 2.19% 2.26% 2.48%* Ratio of net investment income to average daily net assets.............. (1.35%) (1.19%) (1.04%) (1.02%) (1.46%)* Portfolio turnover rate................. 49% 29% 30% 18% 27%
* Annualized. @ These are the fund's total returns during the period, including reinvestment of all dividend and capital gains distributions without adjustments for sales charge. + For the period from November 14, 1994 (commencement of operations) to October 31, 1995. (a) Advisers has waived expenses for 12b-1 fees charged in excess of National Association of Securities Dealers limitations. For the year ending October 31, 1999, had the waiver not been made, ratios of expenses and net investment income to average daily net assets would have been 2.16% and (1.35%) respectively, for Class C. 19 FORTIS WORLDWIDE PORTFOLIOS, INC. Notes to Financial Statements (continued) - -------------------------------------------------------------------------------- 4. FINANCIAL HIGHLIGHTS (continued):
Class A ------------------- Year Ended October 31, ------------------- INTERNATIONAL EQUITY PORTFOLIO 1999 1998** - -------------------------------------------------------------- Net asset value, beginning of period.... $ 10.36 $ 10.46 -------- -------- Operations: Investment gain (loss) - net.......... -- .02 Net realized and unrealized gain (loss) on investments and foreign currency transactions........................ 6.88 (.12) -------- -------- Total from operations................... 6.88 (.10) -------- -------- Distributions to shareholders: From investment income - net.......... (.10) -- -------- -------- Net asset value, end of period.......... $ 17.14 $ 10.36 -------- -------- Total return @.......................... 66.90% (.96%) Net assets end of period (000s omitted).............................. $ 10,267 $ 3,362 Ratio of expenses to average daily net assets (a)............................ 1.70% 1.70%* Ratio of net investment income to average daily net assets (a).......... (.18%) .57%* Portfolio turnover rate................. 62% 43%
Class B ----------------- Year Ended October 31, ----------------- INTERNATIONAL EQUITY PORTFOLIO 1999 1998** - ------------------------------------------------------------ Net asset value, beginning of period.... $ 10.33 $ 10.45 ------- ------- Operations: Investment gain (loss) - net.......... (.13) -- Net realized and unrealized gain (loss) on investments and foreign currency transactions........................ 6.88 (.12) ------- ------- Total from operations................... 6.75 (.12) ------- ------- Distributions to shareholders: From investment income - net.......... (.03) -- ------- ------- Net asset value, end of period.......... $ 17.05 $ 10.33 ------- ------- Total return @.......................... 65.56% (1.15%) Net assets end of period (000s omitted).............................. $ 959 $ 143 Ratio of expenses to average daily net assets (a)............................ 2.45% 2.45%* Ratio of net investment income to average daily net assets (a).......... (.93%) (.18%)* Portfolio turnover rate................. 62% 43%
* Annualized. ** For the period March 2, 1998 (date shares first offered to the public) to October 31, 1998. @ These are the Funds total returns during the period, including reinvestment of all dividend and capital gains distributions without adjustments for sales charge. (a) Advisers has voluntarily undertaken to limit annual expenses for International Equity (exclusive of interest, taxes, brokerage commission and non-recurring extraordinary charges and expenses) to 1.70% of the average daily net assets for Class A and 2.45% for Classes B, C and H. For the year ended October 31, 1999, had the waiver and reimbursement of expenses not been in effect, the ratios of expenses and net investment income to average daily net assets would have been 2.44% and (.92%) for Class A and 3.19% and (1.67%) for Class B. For the period ended October 31, 1998, the ratios of expenses and net investment income to average daily net assets would have been 3.70% and (1.43%) for Class A and 4.45% and a (2.18%) for Class B. 20 - -------------------------------------------------------------------------------- 4. FINANCIAL HIGHLIGHTS (continued):
Class C --------------- Year Ended October 31, --------------- INTERNATIONAL EQUITY PORTFOLIO 1999 1998** - ---------------------------------------------------------- Net asset value, beginning of period.... $10.32 $10.45 ------ ------ Operations: Investment gain (loss) - net.......... (.12) (.01) Net realized and unrealized gain (loss) on investments and foreign currency transactions........................ 6.88 (.12) ------ ------ Total from operations................... 6.76 (.13) ------ ------ Distributions to shareholders: From investment income - net.......... (.03) -- ------ ------ Net asset value, end of period.......... $17.05 $10.32 ------ ------ Total return @.......................... 65.72% (1.24%) Net assets end of period (000s omitted).............................. $ 597 $ 31 Ratio of expenses to average daily net assets (a)............................ 2.45% 2.45%* Ratio of net investment income to average daily net assets (a).......... (.93%) (.18%)* Portfolio turnover rate................. 62% 43%
Class H ----------------- Year Ended October 31, ----------------- INTERNATIONAL EQUITY PORTFOLIO 1999 1998** - ------------------------------------------------------------ Net asset value, beginning of period.... $ 10.32 $ 10.45 ------- ------- Operations: Investment gain (loss) - net.......... (.14) (.01) Net realized and unrealized gain (loss) on investments and foreign currency transactions........................ 6.88 (.12) ------- ------- Total from operations................... 6.74 (.13) ------- ------- Distributions to shareholders: From investment income - net.......... (.03) -- ------- ------- Net asset value, end of period.......... $ 17.03 $ 10.32 ------- ------- Total return @.......................... 65.53% (1.24%) Net assets end of period (000s omitted).............................. $ 1,649 $ 267 Ratio of expenses to average daily net assets (a)............................ 2.45% 2.45%* Ratio of net investment income to average daily net assets (a).......... (.93%) (.18%)* Portfolio turnover rate................. 62% 43%
* Annualized. ** For the period March 2, 1998 (date shares first offered to the public) to October 31, 1998. @ These are the Funds total returns during the period, including reinvestment of all dividend and capital gains distributions without adjustments for sales charge. (a) Advisers has voluntarily undertaken to limit annual expenses for International Equity (exclusive of interest, taxes, brokerage commission and non-recurring extraordinary charges and expenses) to 1.70% of the average daily net assets for Class A and 2.45% for Classes B, C and H. For the year ended October 31, 1999, had the waiver and reimbursement of expenses not been in effect, the ratios of expenses and net investment income to average daily net assets would have and 3.19% and (1.67%) for Class C and 3.19% and (1.67%) for Class H. For the period ended October 31, 1998, the ratios of expenses and net investment income to average daily net assets would have been 4.45% and (2.18%) for Class C, and 4.45% and (2.18)% for Class H. - --------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO FEDERAL TAX (UNAUDITED) Ordinary Income Per Share Record Date Class A Class B Class C Class H - ---------------------------------------------------------------------------------------------- December 18, 1998.............................. 0.097 0.034 0.034 0.034 ------- ------- ------- ------- Total Distributions............................ 0.097 0.034 0.034 0.034 ------- ------- ------- -------
21 INDEPENDENT AUDITORS' REPORT The Board of Directors and Shareholders Fortis Worldwide Portfolios, Inc.: We have audited the accompanying statements of assets and liabilities, including the schedules of investments in securities, of Global Growth Portfolio and International Equity Portfolio (portfolios within Fortis Worldwide Portfolios, Inc.) as of October 31, 1999 and the related statements of operations for the year then ended, and the statements of changes in net assets and the financial highlights for each of the periods presented. These financial statements and the financial highlights are the responsibility of fund management. Our responsibility is to express an opinion on these financial statements and the financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and the financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Investment securities held in custody are confirmed to us by the custodian. As to securities purchased but not received, sold but not delivered and securities on loan, we carry out other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and the financial highlights referred to above present fairly, in all material respects, the financial position of Fortis Global Growth Portfolio and International Equity portfolio as of October 31, 1999 and the results of their operations , the changes in their net assets and the financial highlights for the periods presented, in conformity with generally accepted accounting principles. KPMG LLP Minneapolis, Minnesota December 3, 1999 22 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, CRANBROOK EDUCATION COMMUNITY. PRIOR TO JULY 1996, PRESIDENT MACALESTER COLLEGE Benjamin S. Jaffray CHAIRMAN, SHEFFIELD GROUP, LTD. Jean L. King PRESIDENT, COMMUNI-KING Dean C. Kopperud CHIEF EXECUTIVE OFFICER AND DIRECTOR, FORTIS ADVISERS, INC. PRESIDENT AND DIRECTOR, FORTIS INVESTORS, INC. PRESIDENT - FORTIS FINANCIAL GROUP, FORTIS BENEFITS INSURANCE COMPANY AND SENIOR VICE PRESIDENT, FORTIS INSURANCE COMPANY Edward M. Mahoney PRIOR TO JANUARY 1995, CHAIRMAN AND CHIEF EXECUTIVE OFFICER, FORTIS ADVISERS, INC., FORTIS INVESTORS, INC. Robb L. Prince FINANCIAL AND EMPLOYEE BENEFIT CONSULTANT. PRIOR TO JULY 1995, VICE PRESIDENT AND TREASURER, JOSTENS, INC. Leonard J. Santow PRINCIPAL, GRIGGS & SANTOW, INC. Noel Schenker Shadko MARKETING CONSULTANT. PRIOR TO MAY 1996, SENIOR VICE PRESIDENT OF MARKETING & STRATEGIC PLANNING, ROLLERBLADE, INC. Joseph M. Wikler INVESTMENT CONSULTANT AND PRIVATE INVESTOR. PRIOR TO JANUARY 1994, DIRECTOR OF RESEARCH, CHIEF INVESTMENT OFFICER, PRINCIPAL, AND DIRECTOR, THE ROTHSCHILD CO.
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 AND Fortis Advisers, Inc. TRANSFER AGENT BOX 64284, ST. PAUL, MINNESOTA 55164 PRINCIPAL UNDERWRITER Fortis Investors, Inc. BOX 64284, ST. PAUL, MINNESOTA 55164 CUSTODIAN U.S. Bank National Association MINNEAPOLIS, MINNESOTA GENERAL COUNSEL Dorsey & Whitney LLP MINNEAPOLIS, MINNESOTA INDEPENDENT AUDITORS KPMG LLP MINNEAPOLIS, MINNESOTA
The use of this material is authorized only when preceded or accompanied by a prospectus. 23 FORTIS FINANCIAL GROUP'S OTHER PRODUCTS AND SERVICES MUTUAL FUNDS/PORTFOLIOS Fortis Bond Funds MONEY FUND CONVENIENT ACCESS TO A BROAD U.S. GOVERNMENT SECURITIES FUND RANGE OF SECURITIES TAX-FREE NATIONAL PORTFOLIO TAX-FREE MINNESOTA PORTFOLIO STRATEGIC INCOME FUND HIGH YIELD PORTFOLIO Fortis Stock Funds ASSET ALLOCATION PORTFOLIO VALUE FUND GROWTH & INCOME FUND CAPITAL FUND GLOBAL GROWTH PORTFOLIO GROWTH FUND INTERNATIONAL EQUITY PORTFOLIO CAPITAL APPRECIATION PORTFOLIO FIXED AND VARIABLE ANNUITIES Fortis Opportunity Fixed FIXED ACCOUNT TAX-DEFERRED INVESTING & Variable Annuity MONEY MARKET SUBACCOUNT Masters Variable Annuity U.S. GOVERNMENT SECURITIES SUBACCOUNT DIVERSIFIED INCOME SUBACCOUNT Empower Variable GLOBAL BOND SUBACCOUNT Annuity HIGH YIELD SUBACCOUNT GLOBAL ASSET ALLOCATION SUBACCOUNT Income Preferred ASSET ALLOCATION SUBACCOUNT Variable Annuity VALUE SUBACCOUNT GROWTH & INCOME SUBACCOUNT S&P 500 INDEX SUBACCOUNT BLUE CHIP STOCK SUBACCOUNT INTERNATIONAL STOCK SUBACCOUNT MID CAP STOCK SUBACCOUNT SMALL CAP VALUE SUBACCOUNT GLOBAL GROWTH SUBACCOUNT LARGE CAP GROWTH SUBACCOUNT GROWTH STOCK SUBACCOUNT AGGRESSIVE GROWTH SUBACCOUNT Fortune Fixed Annuities SINGLE PREMIUM ANNUITY FLEXIBLE PREMIUM ANNUITY Income Annuities GUARANTEED FOR LIFE GUARANTEED FOR A SPECIFIED PERIOD LIFE Wall Street Series FIXED ACCOUNT INSURANCE PROTECTION AND Variable Universal Life MONEY MARKET SUBACCOUNT TAX-DEFERRED INVESTMENT Insurance U.S. GOVERNMENT SECURITIES SUBACCOUNT OPPORTUNITY DIVERSIFIED INCOME SUBACCOUNT GLOBAL BOND SUBACCOUNT HIGH YIELD SUBACCOUNT GLOBAL ASSET ALLOCATION SUBACCOUNT ASSET ALLOCATION SUBACCOUNT VALUE SUBACCOUNT GROWTH & INCOME SUBACCOUNT S&P 500 INDEX SUBACCOUNT BLUE CHIP STOCK SUBACCOUNT INTERNATIONAL STOCK SUBACCOUNT MID CAP STOCK SUBACCOUNT SMALL CAP VALUE SUBACCOUNT GLOBAL GROWTH SUBACCOUNT LARGE CAP GROWTH SUBACCOUNT GROWTH STOCK SUBACCOUNT AGGRESSIVE GROWTH SUBACCOUNT Adaptable Life Universal Life
FORTIS FINANCIAL GROUP manages and distributes mutual funds, annuities and life insurance products. The mutual funds, variable life and variable annuity products are distributed through FORTIS INVESTORS, INC. and managed by FORTIS ADVISERS, INC. The insurance products are issued by FORTIS BENEFITS INSURANCE COMPANY, FIRST FORTIS LIFE INSURANCE COMPANY and FORTIS INSURANCE COMPANY. FOR MORE COMPLETE INFORMATION, INCLUDING CHARGES AND EXPENSES, SEND FOR A PROSPECTUS. WRITE TO: FORTIS INVESTORS, INC., P.O. BOX 64284, ST. PAUL, MN 55164. READ IT CAREFULLY BEFORE INVESTING OR SENDING MONEY. 24 [LOGO] FORTIS Solid partners, flexible solutions-SM- - -------------------------------------------------------------------------------- FORTIS MEANS STEADFAST Fortis means "steadfast" in Latin. The worldwide Fortis family of companies lives up to the name, and has each day since the 1800s, with flexible solutions tailored to our customers' individual needs. We deliver the stability you require today ... and tomorrow. You can count on it. Fortis Financial Group offers annuities, life insurance and mutual funds through its broker/dealer Fortis Investors, Inc. We're part of Fortis, Inc., a financial services company that provides speciality insurance and investment products to individuals, businesses, associations and other financial services organizations throughout the United States. Fortis, Inc. is part of the international Fortis group, which operates in the fields of insurance, banking and investments. Fortis' listed companies are Fortis (B) of Belgium and Fortis (NL) of the Netherlands. Fortis: Steadfast for YOU! FORTIS FINANCIAL GROUP Fund management offered through Fortis Advisors, Inc. since 1949 Securities offered through Fortis Investors, Inc., member NASD, SIPC Insurance products offered through Fortis Benefits Insurance Company & Fortis Insurance Company P.O. Box 64284, St. Paul, MN 55164-0284 Telephone (800) 800-2000 http://www.ffg.us.fortis.com - -------------------------------------------------------------------------------- FORTIS FINANCIAL GROUP --------------- P.O. Box 64284 Bulk Rate St. Paul, MN 55164-0284 U.S. Postage PAID Permit No. 3794 Fortis international stock funds Minneapolis, MN --------------- [LOGO] Printed on recycled paper with 40% preconsumer waste and 10% post consumer waste. Please recycle. The Fortis brandmark and Fortis-SM- are servicemarks of Fortis (B) and Fortis (NL). 96156-C- Fortis, Inc. 12/99 -----END PRIVACY-ENHANCED MESSAGE-----