<PAGE>
FORTIS MONEY FUND
SEMI-ANNUAL REPORT
MARCH 31, 1995
CONTENTS
LETTER TO SHAREHOLDERS 1
OTHER PRODUCTS AND SERVICES 2
SCHEDULE OF INVESTMENTS 3
STATEMENT OF ASSETS AND LIABILITIES 4
STATEMENT OF OPERATIONS 5
STATEMENTS OF CHANGES IN NET ASSETS 6
NOTES TO FINANCIAL STATEMENTS 7
BOARD OF DIRECTORS AND OFFICERS 9
HOW TO USE THIS REPORT
The letter from the portfolio manager and president provides a detailed analysis
of the fund and financial markets. The pie chart shows a breakdown of the fund's
assets by sector.
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.
Toll-free personal assistance
Shareholder Services (800) 800-2638, Ext. 3012 or 3014
7:30 a.m. to 5:30 p.m. CST, M-Th
7:30 a.m. to 5:00 p.m. CST, F
Toll-free information line
For daily account balances, transaction activity or net asset value information
(800) 800-2638, Ext. 4344
24 hours a day
For more information about Fortis Financial Group's family of products, call
your investment representative or the home office at (800) 800-2638. To order
prospectuses or sales literature for any Fortis product, call (800) 800-2638,
Ext. 4579.
DEAR SHAREHOLDER,
We're pleased to present the Fortis Money Fund semi-annual report for the period
ended March 31, 1995.
ECONOMIC REVIEW AND INVESTMENT STRATEGIES
Since our last shareholder letter, short-term interest rates have risen about 1
percent, while longer term rates are down nearly 1/2 percent. In fact, domestic
economic growth seems to have slowed to a pace where many financial analysts
believe there is little need for further federal reserve tightening.
However, we have several concerns that give us reason to believe the fed may
have to tighten rates yet again in the months ahead. Specifically, we're
concerned by price increases in raw commodities (e.g. metals, grains, food
products) and intermediate goods (e.g. steel, fabric, plastic). We're also
concerned by the fact that any additional economic expansion could lead to more
production bottlenecks, thereby creating higher consumer prices. Finally, we
feel the slowdown may be short-lived because the current lower interest rates
could cause some acceleration in economic growth.
PORTFOLIO REVIEW
Our primary concerns in managing the Fortis Money Fund are quality, safety and
liquidity. Our approved list of eligible investments continues to emphasize the
highest quality domestic issuers. With short-term rates increasing nearly 1
percent over the past six months, our strategy of maintaining an average
maturity of
<PAGE>
between 20 and 30 days has allowed us to take advantage of higher rates as
maturities come due. We want to reassure shareholders that we have never used,
nor plan to use, derivatives in the Fortis Money Fund.
IN CLOSING
We're pleased to announce the addition of class share pricing, which offers
investors a choice of purchasing plans. Each class of shares represents the same
investment portfolio, the same fund philosophy and the same professional money
management you've come to associate with Fortis Financial Group.
As you invest, consider the amount of your investment, the length of time you
plan to hold it, your current financial needs and the expenses of each class of
shares. Then talk with your financial advisor to determine the class of shares
that best meets your financial needs and goals.
We appreciate your investment in the Fortis Money Fund. If you have any
questions, please call us or talk with your investment professional.
Sincerely,
Dean C. Kopperud
President
Dennis M. Ott
Vice President
April 26, 1995
Portfolio Composition by Industry as of 3/31/95
Diversified Finance 22.6%
Industrial 4.0%
Utilities - Gas 1.2%
Brokerage & Investment 4.8%
Captive Equipment Finance 8.3%
Utilities - Electric 9.2%
Captive Auto Finance 9.3%
Banks 18.3%
Consumer Finance 21.3%
FORTIS FINANCIAL GROUP'S OTHER PRODUCTS AND SERVICES
MUTUAL FUNDS/PORTFOLIOS
Fortis Advantage Portfolios, Inc.
ASSET ALLOCATION PORTFOLIO
CAPITAL APPRECIATION PORTFOLIO
GOVERNMENT TOTAL RETURN PORTFOLIO
HIGH YIELD PORTFOLIO
Fortis Capital Fund
Fortis Fiduciary Fund, Inc.
Fortis Global Growth Fund Portfolio
Fortis Growth Fund, Inc.
Fortis Money Fund
Fortis Tax-Free Portfolios, Inc.
MINNESOTA PORTFOLIO
NATIONAL PORTFOLIO
NEW YORK PORTFOLIO
Fortis U.S. Government Securities Fund
FIXED AND VARIABLE ANNUITIES
Fortis Opportunity Fixed &Variable Annunity
Masters Variable Annuity
FIXED ACCOUNT
MONEY MARKET
U.S. GOVERNMENT SECURITIES
DIVERSIFIED INCOME
GLOBAL BOND
HIGH YIELD
ASSET ALLOCATION
GLOBAL ASSET ALLOCATION
GROWTH & INCOME
GLOBAL GROWTH
GROWTH STOCK
INTERNATIONAL STOCK
AGGRESSIVE GROWTH
<PAGE>
Fortune Fixed Annuities
SINGLE PREMIUM ANNUITY
FLEXIBLE PREMIUM ANNUITY
Income Annuities
GUARANTEED FOR LIFE
GUARANTEED FOR A SPECIFIED PERIOD
LIFE AND DISABILITY
Wall Street Series VUL 100, 220 & 500
FIXED ACCOUNT
MONEY MARKET
U.S. GOVERNMENT SECURITIES
DIVERSIFIED INCOME
GLOBAL BOND
HIGH YIELD
ASSET ALLOCATION
GLOBAL ASSET ALLOCATION
GROWTH & INCOME
GROWTH STOCK
GLOBAL GROWTH
INTERNATIONAL STOCK
AGGRESSIVE GROWTH
Adaptable Life
Universal Life
Disability
THE FORTIS FINANCIAL GROUP manages and distributes mutual funds, annuities and
life insurance products. The mutual funds, variable life and variable annuity
products are distributed through FORTIS INVESTORS, INC. and managed by FORTIS
ADVISERS, INC. The insurance products are issued by FORTIS BENEFITS INSURANCE
COMPANY and TIME INSURANCE COMPANY.
FOR MORE COMPLETE INFORMATION, INCLUDING CHARGES AND EXPENSES, SEND FOR A
PROSPECTUS. WRITE TO: FORTIS INVESTORS, INC., P.O. BOX 64284, ST. PAUL, MN
55164. READ IT CAREFULLY BEFORE INVESTING OR SENDING MONEY.
SCHEDULE OF INVESTMENTS
(Unaudited)
March 31, 1995
SHORT-TERM INVESTMENTS - 99.99%
<TABLE>
<CAPTION>
Standard
Principal Maturity & Poor's
Amount Yield Date Rating Value (a)
<S> <C> <C> <C> <C>
BANKS -- 16.33%
$4,800,000 Banc One Funding Corp. (c) 6.37% 4-27-95 A1 $ 4,778,576
2,816,000 First Trust Money Market Variable Rate Time Deposit Account 6.01% 4-01-95 A1+ 2,816,000
4,700,000 National Westminster Bancorp 6.15% 4-05-95 A1 4,696,867
4,000,000 Norwest Corp. 6.16% 5-08-95 A1 3,975,333
16,266,776
BROKERAGE AND INVESTMENT -- 4.80%
4,800,000 Merrill Lynch & Co., Inc. 6.35% 4-19-95 A1 4,785,192
CAPTIVE AUTO FINANCE -- 9.27%
4,500,000 Ford Motor Credit Corp. 6.18% 6-13-95 A1 4,445,068
4,800,000 General Motors Acceptance Corp. 6.31% 4-07-95 D1* 4,795,080
9,240,148
CAPTIVE EQUIPMENT FINANCE -- 8.29%
4,000,000 IBM Credit Corp. 6.10% 5-05-95 A1 3,977,447
<PAGE>
4,300,000 John Deere Capital Corp. 6.12% 5-02-95 A1 4,277,820
8,255,267
CONSUMER FINANCE -- 21.34%
4,800,000 American Express Credit Corp. 6.15% 4-12-95 A1 4,791,200
4,000,000 American General Finance Corp. 6.08% 5-04-95 A1 3,978,257
4,000,000 Beneficial Corp. 6.22% 5-11-95 A1 3,973,022
4,100,000 Commercial Credit Co. 6.15% 5-16-95 A1 4,069,250
4,500,000 Household Finance Corp. 6.16% 6-07-95 A1 4,449,750
21,261,479
DIVERSIFIED FINANCE -- 22.55%
4,390,000 Associates Corp. Master Variable Rate Note 6.00% 4-01-95 A1+ 4,390,000
4,800,000 CIT Group Holdings, Inc. 6.14% 4-04-95 A1 4,797,604
4,800,000 General Electric Capital Corp. 6.15% 4-14-95 A1 4,789,600
4,300,000 Heller Financial, Inc. 6.13% 5-22-95 A1 4,263,572
4,300,000 Prudential Funding Corp. 6.23% 7-06-95 A1 4,230,741
22,471,517
INDUSTRIAL -- 4.00%
4,000,000 Xerox Credit Corp. 6.09% 4-21-95 A1 3,986,756
UTILITIES -- ELECTRIC -- 9.20%
4,800,000 Central & South West Credit Corp. 6.31% 4-24-95 A1 4,781,201
4,400,000 South Carolina Fuel Co. 6.09% 4-26-95 A1 4,381,758
9,162,959
UTILITIES -- GAS - 4.21%
4,200,000 Bay State Gas Co. 6.09% 4-10-95 A1 4,193,721
TOTAL SHORT-TERM INVESTMENTS (B) $99,623,815
<FN>
(a) See Note A of accompanying Notes to Financial Statements regarding
valuation of securities.
(b) Also represents the cost of securities for federal income tax
purposes.
(c) Commercial paper sold within terms of a private placement memorandum,
exempt from registration under section 4(2) of the Securities Act of
1933, as amended, and may be sold only to dealers in that program or
other "accredited investors". These securities have been determined to
be liquid under guidelines established by the Board of Directors.
(d) Note: Percentage of investments as shown is the ratio of the total
market value to total net assets.
* Duffs & Phelps Rating.
</TABLE>
STATEMENT OF ASSETS AND LIABILITIES
(Unaudited)
March 31, 1995
<TABLE>
<S> <C>
ASSETS:
Short-term investments, as detailed in the accompanying schedule,
at amortized cost (approximates market) (Note A) $99,623,815
Cash on deposit with custodian 336
Receivables:
Interest 38,438
Deferred registration costs (Note A) 41,444
Prepaid expenses 26,252
TOTAL ASSETS 99,730,285
LIABILITIES:
Payable for investment advisory and management fees (Note B) 47,797
Cash portion of dividends payable 25,598
Accounts payable and accrued expenses 18,713
TOTAL LIABILITIES 92,108
NET ASSETS:
Net proceeds of capital stock, par value $.01 per share --
authorized 50,000,000,000 shares (Note C) $99,638,177
SHARES OUTSTANDING AND NET ASSET VALUE PER SHARE:
Class A shares (based on net assets of $99,617,912 and 99,617,912 shares outstanding) 1.00
Class B shares (none) --
Class C shares (none) --
Class H shares (based on net assets of $20,265 and 20,265 shares outstanding) 1.00
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
<PAGE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
(Unaudited)
For the Six-Month Period Ended March 31, 1995
<S> <C>
NET INVESTMENT INCOME:
Interest income $2,841,359
Expenses:
Investment advisory and management fees (Note B) 299,438
Distribution fees (Class B) (Note B) --
Distribution fees (Class C) (Note B) --
Distribution fees (Class H) (Note B) 9
Registration fees 64,498
Transfer agent expenses (Note B) 34,337
Shareholder's notices and reports 20,745
Legal and auditing fees (Note B) 16,789
Custodian fees 10,885
Directors' fees and expenses 8,863
Other 3,659
Total expenses 459,223
NET INVESTMENT INCOME 2,382,136
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $2,382,136
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the Six-Month
Period Ended For the
March 31, 1995 Year Ended
(Unaudited) September 30, 1994
<S> <C> <C>
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS:
Net investment income $ 2,382,136 $ 2,853,826
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A (2,382,098) (2,853,826)
Class B -- --
Class C -- --
Class H (38) --
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (2,382,136) (2,853,826)
CAPITAL STOCK SOLD AND REPURCHASED (at constant $1.00 net asset value per share):
Proceeds from sale of shares
Class A 96,485,356 203,751,045
Class B -- --
Class C -- --
Class H 20,227 --
Proceeds of shares issued as a result of reinvested dividends
Class A 2,174,944 2,631,310
Class B -- --
Class C -- --
Class H 38 --
Less cost of repurchase of shares
Class A (104,701,846) (195,122,120)
Class B -- --
Class C -- --
Class H -- --
NET INCREASE (DECREASE) FROM CAPITAL STOCK TRANSACTIONS (6,021,281) 11,260,235
TOTAL INCREASE (DECREASE) IN NET ASSETS (6,021,281) 11,260,235
NET ASSETS:
Beginning of period 105,659,458 94,399,223
End of period $ 99,638,177 $105,659,458
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
<PAGE>
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: The fund is a diversified
series of Fortis Money Portfolios, Inc., an open-end management investment
company. The primary investment objective of the fund is maximum current
income to the extent consistent with stability of principal. The Articles
of Incorporation of Fortis Money Portfolios, Inc. permits the Board of
Directors to create additional portfolios in the future.
The fund offers Class A, Class B, Class C and Class H shares. Class B and H
shares may be subject to a contingent deferred sales charge, and such
shares automatically convert to Class A after eight years. Class C shares
may be subject to a contingent deferred sales charge. Class A shares of the
Fund will be offered to investors generally, while Class B, C and H will be
available only for exchange from the corresponding class of any other fund.
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.
SECURITY VALUATION: Pursuant to Rule 2a-7 under the Investment Company Act
of 1940, investments are valued at amortized cost which assumes a constant
amortization to maturity of discount or premium. The use of this method
results in a constant net asset value of $1.00.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME: Security transactions
are accounted for on the trade date. Interest income including amortization
of premium and discount, is recorded on the accrual basis. For the six-
month period ended March 31, 1995, the cost of purchases and proceeds from
sales of short-term securities aggregated $352,153,775 and $357,519,530,
respectively.
INCOME TAXES: The fund intends to qualify, under the Internal Revenue Code,
as a regulated investment company and if so qualified, will not have to pay
federal income taxes to the extent its taxable net income is distributed.
On a calendar year basis, the fund intends to distribute substantially all
of its net investment income and realized gains, if any, to avoid the
payment of federal excise taxes.
DEFERRED COSTS: Registration costs are deferred and charged to income over
the registration period.
INCOME DISTRIBUTIONS: It is the policy of the fund to declare a
distribution of all its net investment income each day the New York Stock
Exchange is open, to shareholders of record the previous day, to be paid on
the last business day of each month.
B. PAYMENTS TO RELATED PARTIES: Fortis Advisers, Inc. is the investment
adviser for the fund. Investment advisory and management fees are computed
at an annual rate of .6% of the first $500 million of average daily net
assets and .55% of average daily net assets in excess of $500 million.
Pursuant to a plan adopted under Rule 12b-1 of the Investment Company Act
of 1940, Fortis Advisers uses .2% of its advisory and management fee to pay
for distribution expenses for all classes. Classes B, C and H pay Fortis
Investors, Inc. (the fund's principal underwriter) an additional
distribution fee equal to .8% of average daily net assets (of the
respective classes) on an annual basis.
The fund also reimburses Fortis Advisers, Inc. for direct transfer agent
expenses such as postage.
Legal fees and expenses aggregating $10,058 for the six-month period ended
March 31, 1995, were paid to a law firm of which the secretary of the fund
is a partner.
C. CAPITAL CHANGES: At the special shareholders' meeting of August 23, 1994,
the Amended and Restated Articles of Incorporation were approved, which
increased the number of authorized shares from 5 billion to 50 billion and
allows the fund to issue multiple classes of shares effective November 14,
1994.
D. FINANCIAL HIGHLIGHTS: Selected per share historical data was as follows:
<TABLE>
<CAPTION>
Class A
Year Ended
Year Ended September 30, December 31,
1995*** 1994 1993 1992 1991** 1990
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Operations:
<PAGE>
Investment income -- net .02 .03 .02 .03 .04 .07
Distributions to shareholders:
From investment income -- net (.02) (.03) (.02) (.03) (.04) (.07)
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total Return@ 2.41% 2.92% 2.36% 3.61% 4.36% 7.71%
Net assets, end of period (000s omitted) $99,618 $105,659 $94,399 $98,302 $121,003 $115,791
Ratio of expenses to average daily net assets .92%* .88% .93% .83% .82%* .84%
Ratio of net investment income to average
daily net assets 4.77%* 2.92% 2.34% 3.59% 5.70%* 7.40%
<CAPTION>
Class B Class C Class H
1995# 1995# 1995+
<S> <C> <C> <C>
Net asset value, beginning of period $ 1.00
Operations:
Investment income -- net -- -- .002
Distribution to shareholders:
From investment income -- net -- -- (.002)
Net asset value, end of period -- -- $ 1.00
Total Return@ -- -- 1.71%
Net assets end of period (000s omitted) $ 20
Ratio of expenses to average daily net assets 1.72%*
Ratio of net investment income to average daily net assets 4.23%*
<FN>
* Annualized.
** Nine-month period ended September 30, 1991.
*** For the six-month period ended March 31, 1995.
@ These are the portfolio's total returns during the periods, including reinvestment of all distributions.
+ For the period from November 14, 1994 (commencement of operations) to March 31, 1995.
# No activity for the period from November 14, 1994 (commencement of operations) to March 31, 1995.
</TABLE>
DIRECTORS
RICHARD W. CUTTING, CPA and Financial Consultant
ALLEN R. FREEDMAN, Chairman and Chief Executive Officer, Fortis, Inc.; Managing
Director of Fortis International, N.V.
DR. ROBERT M. GAVIN, President, Macalester College
BENJAMIN S. JAFFRAY, Chairman, Sheffield Group, Ltd.
JEAN L. KING, President, Communi-King
DEAN C. KOPPERUD, President and Director, Fortis Advisers, Inc., Fortis
Investors, Inc., Senior Vice President and Director of Fortis Benefits
Insurance Company, Senior Vice President of Time Insurance Company
EDWARD M. MAHONEY, Prior to January, 1995, Chairman and Chief Executive Officer,
Fortis Advisers, Inc., Fortis Investors, Inc.
THOMAS R. PELLETT, Prior to January, 1991, Senior Vice President--Administration
and Corporate Affairs and Director, Pet Incorporated
ROBB L. PRINCE, Vice President and Treasurer, Jostens, Inc.
LEONARD J. SANTOW, Principal, Griggs & Santow, Inc.
JOSEPH M. WIKLER, Prior to January, 1994, Director of Research, Chief Investment
Officer, Principal, and Director, The Rothschild Co.
OFFICERS
DEAN C. KOPPERUD, President and Director
STEPHEN M. POLING, Vice President
DENNIS M. OTT, Vice President
JAMES S. BYRD, Vice President
ROBERT C. LINDBERG, Vice President
KEITH R. THOMSON, Vice President
ROBERT W. BELTZ, JR., Vice President
<PAGE>
ROBERT J. CLANCY, Vice President
THOMAS D. GUALDONI, Vice President
LARRY A. MEDIN, Vice President
JON H. NICHOLSON, Vice President
JOHN W. NORTON, Vice President
DAVID A. PETERSON, Vice President
MICHAEL J. RADMER, Secretary
TAMARA L. FAGLEY, Treasurer
DAVID G. CARROLL, 2nd Vice President
CHRIS J. NEUHARTH, 2nd Vice President
INVESTMENT MANAGER, REGISTRAR AND TRANSFER AGENT, Fortis Advisers, Inc., Box
64284, St. Paul, Minnesota 55164
PRINCIPAL UNDERWRITER, Fortis Investors, Inc., Box 64284, St. Paul, Minnesota
55164
CUSTODIAN, First Bank National Association, Minneapolis, Minnesota
GENERAL COUNSEL, Dorsey &Whitney P.L.L.P., Minneapolis, Minnesota
INDEPENDENT AUDITORS, KPMGPeat Marwick LLP, Minneapolis, Minnesota
THE USE OF THIS MATERIAL IS AUTHORIZED ONLY WHEN PRECEDED OR ACCOMPANIED BY A
PROSPECTUS.
<PAGE>
FORTIS FINANCIAL GROUP
Fortis Financial Group (FFG) is a premier provider of insurance and
investment portfolios whose fund manager, Fortis Advisors, Inc. has established
a nationwide reputation for money management. Through Fortis Investors, Inc.,
FFG offers mutual funds annuities and variable universal life insurance. Life
and disability products are issued and underwritten by Time Insurance Company
and Fortis Benefits Insurance Company.
With more than $5 billion in assets under management, FFG is part of
Fortis, a $100 billion worldwide financial services and insurance organization
represented in 11 countries.
Like the Fortis name, which comes from the Latin for steadfast, our focus
is on the long-term in all we do: the relationships we build, the performance
we seek, the service we provide and the products we offer.
