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[Logo]
FORTIS
MONEY
FUND
Annual Report
September 30, 1996
<PAGE>
FORTIS MONEY FUND ANNUAL REPORT
CONTENTS
LETTER TO SHAREHOLDERS 1
SCHEDULE OF INVESTMENTS 2
STATEMENT OF ASSETS AND LIABILITIES 3
STATEMENT OF OPERATIONS 3
STATEMENTS OF CHANGES IN NET ASSETS 4
NOTES TO FINANCIAL STATEMENTS 5
INDEPENDENT AUDITORS' REPORT 7
BOARD OF DIRECTORS AND OFFICERS 8
PRODUCTS AND SERVICES 9
- - TOLL-FREE PERSONAL ASSISTANCE
- Shareholder Services
- (800) 800-2638, Ext. 3012
- 7:30 a.m. to 5:30 p.m. CST, M-Th
- 7:30 a.m. to 5:00 p.m. CST, F
- - TOLL-FREE INFORMATION LINE
- For daily account balances,
transaction activity or net asset
value information
- (800) 800-2638, Ext. 4344
- 24 hours a day
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.
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 industry.
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.
<PAGE>
Photo
MONEY FUND PORTFOLIO COMPOSITION BY INDUSTRY AS OF 9/30/96
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Consumer Finance 20.4%
Diversified Finance 15.0%
Banks 20.5%
Captive Equipment Finance 17.0%
Captive Auto Finance 7.4%
Brokerage & Investment 5.0%
Tobacco 2.6%
Utilities - Electric 7.3%
Industrial 4.8%
</TABLE>
DEAR SHAREHOLDER,
The Fortis Money Fund, our most conservative mutual fund, chooses investments of
the highest quality. All holdings in the portfolio must be consistent with the
fund's primary objectives; namely, to provide relative safety of principal,
liquidity and current return. Over the past 12 months, we faced some unique
investment challenges as the weak economic conditions at the end of 1995 turned
and improved markedly in the first and second quarters of 1996. The fund's
12-month total return on September 30, 1996, was 4.74 percent for Class E
shares.
SEESAW MARKET CONDITIONS
Over the course of the past year, the money markets had to respond to a wide
variety of economic conditions. A year ago, the economy appeared to be
weakening, which led us to believe the Federal Reserve Bank would continue to
lower rates. Correspondingly, we increased the average maturity of the
portfolio's holdings to 60 days because, in our opinion, the market had
underestimated how much the Fed would lower rates.
After February's surprisingly strong employment growth, we felt it likely that
the Fed would hold short-term rates steady. Therefore, to capture the higher
yields available on longer maturing securities, we continued to target a 60-day
average maturity in the portfolio. We maintained this stance until September,
when moderately strong economic statistics and comments by the Federal Reserve
suggesting a need to raise rates caused us to lower the average maturity to 45
days. However, after the Fed left rates unchanged at their September meeting and
the release of a surprisingly weak September employment report, we retraced our
steps to set the average maturity target at 60 days.
ECONOMIC GROWTH EXPECTED TO CONTINUE
We expect short term rates and consequently your fund's yield to remain near
current levels for the rest of 1996. This view is based on our feeling that the
Fed will hold off making any policy changes until economic signals are more
clear. We also believe the economy will continue to grow 2 to 3 percent through
1997. While inflation is currently restrained, there are some early warning
signs pertaining to the labor markets and wages that could prove troublesome in
1997. Should inflation become a problem, we will adjust the portfolio holdings
to preserve the fund's primary objectives of liquidity, current value and a
stable per share value.
WE APPRECIATE YOUR INVESTMENT
Today's economic and investment climates remain ever-changing, and we appreciate
your trust in us as we manage this fund for you. If you have any questions,
please call us or your investment professional.
Sincerely,
<TABLE>
<S> <C>
[SIGNATURE] [SIGNATURE]
Dean C. Kopperud Howard G. Hudson
President Vice President
</TABLE>
October 17, 1996
1
<PAGE>
FORTIS MONEY FUND
Schedule of Investments
September 30, 1996
SHORT-TERM INVESTMENTS-100.04%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
& Poor's
Principal Maturity Rating
Amount Yield Date (Unaudited) Value (a)
----------- ------ ---------- ------------- -------------
<C> <S> <C> <C> <C> <C>
BANKS-20.53%
$6,200,000 Banc One Funding Corp. (c)................... 5.43% 10/25/96 A1 $ 6,178,052
6,200,000 Deutsche Bank Financial Inc.................. 5.53% 10/21/96 A1 6,181,469
2,064,000 First Trust Money Market Variable Rate Time
Deposit.................................... 5.21% 10/01/96 A1+ 2,064,000
4,000,000 First Union Bank NC.......................... 5.53% 12/13/96 A1 3,956,606
3,400,000 Toronto-Dominion Holdings USA, Inc........... 5.53% 01/03/97 A1+ 3,352,681
3,000,000 Toronto-Dominion Holdings USA, Inc........... 5.55% 10/10/96 A1+ 2,996,002
-------------
24,728,810
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BROKERAGE AND INVESTMENT-4.98%
6,000,000 Merrill Lynch & Co., Inc..................... 5.59% 10/01/96 A1+ 6,000,000
-------------
CAPTIVE AUTO FINANCE-7.39%
3,200,000 Ford Motor Credit Corp....................... 5.57% 10/28/96 A1 3,187,016
1,800,000 General Motors Acceptance Corp............... 5.60% 11/01/96 P1* 1,791,723
4,000,000 General Motors Acceptance Corp............... 5.57% 01/27/97 P1* 3,929,331
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8,908,070
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CAPTIVE EQUIPMENT FINANCE-17.04%
2,750,000 General Electric Capital Corp., Medium Term
Note....................................... 5.12% 01/27/97 AAA 2,749,457
6,300,000 IBM Credit Corp.............................. 5.49% 10/30/96 A1 6,272,696
6,300,000 John Deere Capital Corp...................... 5.53% 11/20/96 A1 6,252,750
5,000,000 PACCAR Financial Co.......................... 5.43% 11/12/96 A1 4,969,200
300,000 PACCAR Financial Co.......................... 5.79% 06/13/97 A1 288,355
-------------
20,532,458
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CONSUMER FINANCING-20.43%
6,200,000 American Express............................. 5.45% 11/25/96 A1 6,149,797
6,300,000 American General Finance Corp................ 5.44% 11/26/96 A1 6,248,158
2,500,000 Beneficial Corp.............................. 5.52% 12/17/96 A1 2,471,446
3,900,000 Commercial Credit Corp....................... 5.44% 11/06/96 A1 3,879,213
5,900,000 Household Finance Corp....................... 5.44% 11/18/96 A1 5,858,385
-------------
24,606,999
-------------
DIVERSIFIED FINANCE-14.97%
2,742,000 Associates Corp. Master Variable Rate Note... 5.31% 10/01/96 A1+ 2,742,000
6,300,000 CIT Group Holdings Inc....................... 5.56% 11/01/96 A1 6,270,705
3,300,000 General Electric Capital Corp................ 5.58% 10/23/96 A1+ 3,289,110
5,800,000 Prudential Funding Corp...................... 5.47% 12/18/96 A1 5,733,397
-------------
18,035,212
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INDUSTRIAL-4.81%
5,800,000 Xerox Credit Corp............................ 5.40% 10/11/96 A1 5,791,493
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TOBACCO-2.57%
3,100,000 Phillip Morris Cos., Inc..................... 5.58% 10/15/96 A1 3,093,454
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UTILITIES-ELECTRIC-7.32%
2,200,000 Central & South West Credit Corp............. 5.54% 10/11/96 A1 2,196,663
2,700,000 Central & South West Credit Corp............. 5.37% 10/04/96 A1 2,698,817
3,399,000 South Carolina Fuel Co. (c).................. 5.44% 10/04/96 A1 3,397,485
529,000 Wisconsin Electric Fuel Trust................ 5.41% 10/08/96 A1+ 528,455
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8,821,420
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TOTAL INVESTMENTS IN SECURITIES (COST:
$120,517,916) (B).......................... $ 120,517,916
-------------
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</TABLE>
(a) See Note1 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 the 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". This security has 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.
* Moody's
2
<PAGE>
FORTIS MONEY FUND
Statement of Assets and Liabilities
September 30, 1996
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
<S> <C>
ASSETS
Short-term investments, as detailed in
the accompanying schedule, at
amortized cost (approximates market)
(Note 1)............................ $ 120,517,916
Cash on deposit with custodian........ 689
Receivables:
Interest and dividends.............. 36,259
Deferred registration costs (Note
1).................................. 49,660
--------------
TOTAL ASSETS............................ 120,604,524
--------------
LIABILITIES
Cash portion of dividends payable..... 33,708
Payable for investment advisory and
management fees (Note 2)............ 62,311
Payable for distribution fees (Note
2).................................. 8
Accounts payable and accrued
expenses............................ 44,357
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TOTAL LIABILITIES....................... 140,384
--------------
NET ASSETS
Net proceeds of capital stock, par
value $.01 per share- authorized
50,000,000,000 shares............... $ 120,464,140
--------------
SHARES OUTSTANDING AND NET ASSET VALUE
PER SHARE:
Class A shares (based on net assets of
$120,375,422 and 120,375,422 shares
outstanding)........................ $1.00
--------------
Class B shares (based on net assets of
$27,851 and 27,851 shares
outstanding)........................ $1.00
--------------
Class C shares (based on net assets of
$458 and 458 shares outstanding).... $1.00
--------------
Class H shares (based on net assets of
$60,409 and 60,409 shares
outstanding)........................ $1.00
--------------
</TABLE>
FORTIS MONEY FUND
Statement of Operations
For the Year Ended September 30, 1996
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
<S> <C>
NET INVESTMENT INCOME:
Income
Interest income..................... $ 6,663,041
------------
Expenses:
Investment advisory and management
fees (Note 2)...................... 722,862
Distribution fees (Class B) (Note
2)................................. 441
Distribution fees (Class C) (Note
2)................................. 154
Distribution fees (Class H) (Note
2)................................. 583
Legal and auditing fees (Note 2).... 25,629
Custodian fees...................... 19,659
Shareholders' notices and reports... 39,731
Registration fees (Note 1).......... 143,079
Directors' fees and expenses........ 15,693
Transfer agent expenses (Note 2).... 114,200
Other............................... 7,085
------------
Total expenses........................ 1,089,116
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NET INVESTMENT INCOME................... 5,573,925
------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS......................... $ 5,573,925
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</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
3
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FORTIS MONEY FUND
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
SEPTEMBER 30, SEPTEMBER 30,
1996 1995
-------------- --------------
<S> <C> <C>
INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS
Net investment income................. $ 5,573,925 $ 4,874,328
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A............................. (5,567,690) (4,870,511)
Class B............................. (2,121) --
Class C............................. (1,212) (113)
Class H............................. (2,902) (3,704)
-------------- --------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS..... (5,573,925) (4,874,328)
-------------- --------------
CAPITAL STOCK TRANSACTIONS (AT CONSTANT
$1.00 NET ASSET VALUE PER SHARE):
Proceeds from sale of shares
Class A............................. 289,819,879 207,903,318
Class B............................. 528,590 --
Class C............................. 115,173 12,134
Class H............................. 382,158 705,336
Proceeds from shares issued as a
result of reinvested dividends
Class A............................. 5,017,020 4,461,202
Class B............................. 1,586 --
Class C............................. 1,139 112
Class H............................. 2,280 2,867
Less cost of repurchase of shares
Class A............................. (279,933,849) (212,551,606)
Class B............................. (502,325) --
Class C............................. (125,075) (3,025)
Class H............................. (445,978) (586,254)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS................. 14,860,598 (55,916)
-------------- --------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS.................................. 14,860,598 (55,916)
NET ASSETS:
Beginning of year..................... 105,603,542 105,659,458
-------------- --------------
End of year........................... $ 120,464,140 $ 105,603,542
-------------- --------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
4
<PAGE>
FORTIS MONEY FUND
Notes to Financial Statements
- --------------------------------------------------------------------------------
1. 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. The fund began
to issue multiple class shares effective November 14, 1994. Class B and H
shares 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 may be subject to a contingent deferred sales charge for one year.
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 year ended
September 30, 1996, the cost of
purchases and proceeds from sales of short-term securities aggregated
$686,767,331 and $671,900,483 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.
USE OF ESTIMATES: The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date
of the financial statements and the reported amounts of increase and decrease
in net assets from operations during the reporting period. Actual results
could differ from those estimates.
2. PAYMENTS TO RELATED PARTIES: Fortis Advisers, Inc. is the investment adviser
for the 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. Classes B, C and H pay Fortis Investors, Inc. (the
fund's principal underwriter) additional distribution fees equal to .8% of
average daily net assets (of the respective classes) on an annual basis.
Fortis Investors, Inc. also received sales charges (paid by redeemers of the
funds' shares) aggregating $1,598 for Class B, $61 for Class C and $1,972 for
Class H.
The fund also reimburses Fortis Advisers, Inc. for direct transfer agent
expenses such as postage.
Legal fees and expenses aggregating $10,065 for the year ended September 30,
1996 were paid to a law firm of which the secretary of the fund is a partner.
5
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FORTIS MONEY FUND
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
3. FINANCIAL HIGHLIGHTS Selected per share and other historical data was as
follows:
<TABLE>
<CAPTION>
For the Year Ended September 30,
-----------------------------------------------------------
Class A
-----------------------------------------------------------
1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- -------- --------
Operations:
Investment income - net............... .05 .05 .03 .02 .03
--------- --------- --------- -------- --------
Distributions to shareholders:
From investment income - net.......... (.05) (.05) (.03) (.02) (.03)
--------- --------- --------- -------- --------
Net asset value, end of period.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- -------- --------
Total return @.......................... 4.74% 5.03% 2.92% 2.36% 3.61%
Net assets end of period (000s
omitted).............................. $ 120,375 $ 105,472 $ 105,659 $ 94,399 $ 98,302
Ratio of expenses to average daily net
assets................................ .91% .91% .88% .93% .83%
Ratio of net investment income to
average daily net assets.............. 4.67% 4.91% 2.92% 2.34% 3.59%
</TABLE>
* Annualized
*** For the period from June 14, 1995 (date of first investment) to
September 30, 1995.
**** For the period from March 16, 1995 (date of first investment) to
September 30, 1995.
@ These are the portfolio's total returns during the periods, including
reinvestment of all distributions.
+ For the period from October 9, 1995 (date of first investment) to
September 30, 1996.
++ No activity for the period from November 14, 1994 (commencement of
operations) to September 30, 1995.
(a) Advisers has reimbursed expenses for 12b-1 fees charged in excess of
National Association of Securities Dealers limitations. For the year
ending September 30, 1996, had the reimbursement not been made, the
ratios of expenses and net investment income to average daily net
assets would have been 1.71% and 4.08%, respectively, for class C.
<TABLE>
<CAPTION>
For the Year Ended September 30,
-----------------------------------------------------------
Class B Class C Class H
---------------- ------------------- ----------------
1996+ 1995++ 1996 1995*** 1996 1995****
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $1.00 $ -- $ 1.00 $1.00 $ 1.00 $1.00
------ ------ --------- ------ ------ ------
Operations:
Investment income - net............... .04 -- .05 .01 .04 .02
------ ------ --------- ------ ------ ------
Distributions to shareholders:
From investment income - net.......... (.04) -- (.05) (.01) (.04) (.02)
------ ------ --------- ------ ------ ------
Net asset value, end of period.......... $1.00 $ -- $ 1.00 $1.00 $ 1.00 $1.00
------ ------ --------- ------ ------ ------
Total return @.......................... 4.11% -- 4.97% 1.33% 4.04% 2.52%
Net assets end of period (000s
omitted).............................. $ 28 $ -- $ 1 $ 9 $ 60 $ 122
Ratio of expenses to average daily net
assets................................ 1.71%* -- 1.46%(a) 1.71%* 1.71% 1.71%*
Ratio of net investment income to
average daily net assets.............. 3.99%* -- 4.33%(a) 4.46%* 4.03% 4.43%*
</TABLE>
* Annualized
*** For the period from June 14, 1995 (date of first investment) to
September 30, 1995.
**** For the period from March 16, 1995 (date of first investment) to
September 30, 1995.
@ These are the portfolio's total returns during the periods, including
reinvestment of all distributions.
+ For the period from October 9, 1995 (date of first investment) to
September 30, 1996.
++ No activity for the period from November 14, 1994 (commencement of
operations) to September 30, 1995.
(a) Advisers has reimbursed expenses for 12b-1 fees charged in excess of
National Association of Securities Dealers limitations. For the year
ending September 30, 1996, had the reimbursement not been made, the
ratios of expenses and net investment income to average daily net
assets would have been 1.71% and 4.08%, respectively, for class C.
6
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders
Fortis Money Portfolios, Inc.:
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments in securities, of Fortis Money Fund (a series of
Fortis Money Portfolios, Inc.) as of September 30, 1996, and the related
statement of operations for the year then ended, the statements of changes in
net assets for each of the years in the two-year period ended September 30,
1996, and the financial highlights presented in footnote 3 to the financial
statements. 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. 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 Money Fund at September 30, 1996 and the results of its operations for
the year then ended, the changes in its net assets for each of the years in the
two-year period ended September 30, 1996, and the financial highlights presented
in footnote 3 to the financial statements, in conformity with generally accepted
accounting principles.
KPMG Peat Marwick LLP
Minneapolis, Minnesota
November 8, 1996
7
<PAGE>
DIRECTORS AND OFFICERS
DIRECTORS Richard W. Cutting CPA AND FINANCIAL CONSULTANT
Allen R. Freedman CHAIRMAN AND CHIEF EXECUTIVE OFFICER,
FORTIS, INC. MANAGING DIRECTOR OF
FORTIS INTERNATIONAL, N.V.
Dr. Robert M. Gavin INTERIM PRESIDENT, HAVERFORD COLLEGE.
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.
SENIOR VICE PRESIDENT AND DIRECTOR,
FORTIS BENEFITS INSURANCE COMPANY,
TIME INSURANCE COMPANY
Edward M. Mahoney PRIOR TO JANUARY, 1995, CHAIRMAN AND
CHIEF EXECUTIVE OFFICER, FORTIS
ADVISERS, INC., FORTIS INVESTORS,
INC.
Robb L. Prince FINANCIAL AND EMPLOYEE BENEFIT
CONSULTANT PRIOR TO JULY, 1995, VICE
PRESIDENT AND TREASURER, JOSTENS,
INC.
Leonard J. Santow PRINCIPAL, GRIGGS & SANTOW, INC.
Noel 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
Charles J. Dudley
VICE PRESIDENT
Thomas D. Gualdoni
VICE PRESIDENT
Maroun M. Hayek
VICE PRESIDENT
Howard G. Hudson
VICE PRESIDENT
Robert C. Lindberg
VICE PRESIDENT
Charles L. Mehlhouse
VICE PRESIDENT
Kevin J. Michels
VICE PRESIDENT
Jon H. Nicholson
VICE PRESIDENT
Fred Obser
VICE PRESIDENT
Dennis M. Ott
VICE PRESIDENT
Christopher J. Pagano
VICE PRESIDENT
David A. Peterson
VICE PRESIDENT
Nicholas L. M. de Peyster
VICE PRESIDENT
Stephen M. Poling
VICE PRESIDENT
Stephen M. Rickert
VICE PRESIDENT
Richard P. Roche
VICE PRESIDENT
Rhonda J. Schwartz
VICE PRESIDENT
Keith R. Thomson
VICE PRESIDENT
Christopher J. Woods
VICE PRESIDENT
Gary N. Yalen
VICE PRESIDENT
Michael J. Radmer
SECRETARY
Tamara L. Fagely
TREASURER
INVESTMENT MANAGER, REGISTRAR Fortis Advisers, Inc.
AND TRANSFER AGENT BOX 64284, ST. PAUL, MINNESOTA 55164
PRINCIPAL UNDERWRITER Fortis Investors, Inc.
BOX 64284, ST. PAUL, MINNESOTA 55164
CUSTODIAN First Bank National Association
MINNEAPOLIS, MINNESOTA
GENERAL COUNSEL Dorsey & Whitney LLP
MINNEAPOLIS, MINNESOTA
INDEPENDENT AUDITORS KPMG Peat Marwick LLP
MINNEAPOLIS, MINNESOTA
The use of this material is authorized only when preceded or accompanied by a
prospectus.
8
<PAGE>
FORTIS FINANCIAL GROUP'S OTHER PRODUCTS AND SERVICES
MUTUAL Fortis Bond Funds MONEY FUND
FUNDS/PORTFOLIOS U.S. GOVERNMENT
CONVENIENT ACCESS TO SECURITIES FUND
A BROAD RANGE OF TAX-FREE MINNESOTA
SECURITIES PORTFOLIO
TAX-FREE NATIONAL
PORTFOLIO
TAX-FREE NEW YORK
PORTFOLIO
HIGH YIELD PORTFOLIO
Fortis Stock Funds ASSET ALLOCATION
PORTFOLIO
VALUE FUND
GROWTH & INCOME FUND
CAPITAL FUND
FIDUCIARY FUND
GLOBAL GROWTH PORTFOLIO
GROWTH FUND
CAPITAL APPRECIATION
PORTFOLIO
FIXED AND VARIABLE Fortis Opportunity Fixed FIXED ACCOUNT
ANNUITIES & Variable Annuity MONEY MARKET SUBACCOUNT
TAX-DEFERRED Masters Variable Annuity U.S. GOVERNMENT
INVESTING SECURITIES SUBACCOUNT
DIVERSIFIED INCOME
SUBACCOUNT
GLOBAL BOND SUBACCOUNT
HIGH YIELD SUBACCOUNT
ASSET ALLOCATION
SUBACCOUNT
GLOBAL ASSET ALLOCATION
SUBACCOUNT
VALUE SUBACCOUNT
GROWTH & INCOME
SUBACCOUNT
S&P 500 INDEX SUBACCOUNT
BLUE CHIP STOCK
SUBACCOUNT
GLOBAL GROWTH SUBACCOUNT
GROWTH STOCK SUBACCOUNT
INTERNATIONAL STOCK
SUBACCOUNT
AGGRESSIVE GROWTH
SUBACCOUNT
Fortune Fixed Annuities SINGLE PREMIUM ANNUITY
FLEXIBLE PREMIUM ANNUITY
Income Annuities GUARANTEED FOR LIFE
GUARANTEED FOR A
SPECIFIED PERIOD
LIFE Wall Street Series FIXED ACCOUNT
INSURANCE PROTECTION Variable Universal Life MONEY MARKET SUBACCOUNT
AND TAX-DEFERRED Insurance U.S. GOVERNMENT
INVESTMENT SECURITIES SUBACCOUNT
OPPORTUNITY DIVERSIFIED INCOME
SUBACCOUNT
GLOBAL BOND SUBACCOUNT
HIGH YIELD SUBACCOUNT
ASSET ALLOCATION
SUBACCOUNT
GLOBAL ASSET ALLOCATION
SUBACCOUNT
VALUE SUBACCOUNT
GROWTH & INCOME
SUBACCOUNT
S&P 500 INDEX SUBACCOUNT
BLUE CHIP STOCK
SUBACCOUNT
GLOBAL GROWTH SUBACCOUNT
GROWTH STOCK SUBACCOUNT
INTERNATIONAL STOCK
SUBACCOUNT
AGGRESSIVE GROWTH
SUBACCOUNT
Adaptable Life
Universal Life
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 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.
9
<PAGE>
Fortis Financial Group
Fortis Financial Group (FFG) provides solutions for customers'
financial needs using mutual funds, annuities and life insurance.
Besides our own array of quality products, we create and deliver
customized products for other financial service providers. Like the
Fortis name, which comes from the Latin for strong and steadfast, we
concentrate on the customer relationships we build, the services we
provide, the solutions we offer and the performance we seek.
FFG includes Fortis Advisers, Inc., an established money manager,
as well as Fortis Investors, Inc., a broker dealer with nationwide
sales and marketing influence. The guarantees in our insurance
products are underwritten by Fortis Benefits Insurance Company and
Time Insurance Company.
Fortis Financial Group is part of Fortis, Inc., a financial
services company that provides specialty insurance and investment
products to individuals, businesses, associations and other financial
services organizations in the United States. Fortis, Inc., is part of
Fortis, a worldwide group of companies active in the fields of
insurance, banking and investment. Fortis is jointly owned by Fortis
AMEV of The Netherlands and Fortis AG of Belgium.
[Logo] Bulk Rate
Fortis Financial Group US Postage
P.O. Box 64284 PAID
St. Paul, MN 55164 Permit No. 3794
Minneapolis, MN
FORTIS MONEY FUND
PRINTED ON RECYCLED PAPER WITH
- -Recycled 40% PRECONSUMER WASTE AND
Logo- 10% POST CONSUMER WASTE.
PLEASE RECYCLE.
95221 (Ed. 11/96)
