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[LOGO]
[GRAPHIC]
INVESTING FOR
RELATIVE STABILITY AND CONVENIENCE...
FORTIS
MONEY FUND
ANNUAL REPORT
SEPTEMBER 30, 1997
<PAGE>
FORTIS MONEY FUND ANNUAL REPORT
CONTENTS
LETTER TO SHAREHOLDERS 1
SCHEDULE OF INVESTMENTS 2
STATEMENT OF ASSETS AND LIABILITIES 4
STATEMENT OF OPERATIONS 4
STATEMENTS OF CHANGES IN NET ASSETS 5
NOTES TO FINANCIAL STATEMENTS 6
INDEPENDENT AUDITORS' REPORT 8
BOARD OF DIRECTORS AND OFFICERS 9
- - TOLL-FREE PERSONAL ASSISTANCE
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- (800) 800-2638, Ext. 3012
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- 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
PORTFOLIO COMPOSITION BY INDUSTRY AS OF 9/30/97
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Industrial 2.3%
Brokerage and Investment 4.8%
Beverage 5.0%
Food-Grocery 5.8%
Utilities-Electric 7.4%
Captive Auto Finance 9.7%
Diversified Finance 11.8%
Captive Equipment Finance 14.5%
Banks 16.1%
Consumer Finance 22.6%
</TABLE>
DEAR SHAREHOLDER,
We are pleased to present the Fortis Money Fund annual report for the year
ending September 30, 1997.
ECONOMIC REVIEW
The U.S. economy continues to forge ahead strongly, with gross domestic product
growth for the year ending September 30, 1997 expected to be around 3.7 percent.
Higher inflation, which generally follows a period of such a prolonged
expansion, has not materialized. In fact, the Consumer Price Index has actually
declined to a 2.3 percent rate as global competition, increased productivity and
lower deficits have offset the inflationary effects of strong economic growth.
For the year ending September 30, 1997, the fund yielded 4.74 percent (Class A
before sales charge). In a period of stable short-term rates, the yield has not
changed from last year when the Fund's yield was also 4.74 percent (Class A
before sales charge). The behavior of short-term rates over the past year can be
summarized as two six-month periods of relatively stable rates separated by an
upward shift in rates. This was the result of the Federal Reserve's decision to
raise the Federal Funds rate 0.25 percent on March 25th. (The Federal Funds Rate
is the interest rate charged by banks with excess reserves to banks that need
the money to meet reserve requirements.)
During the past year, the Fund's average maturity has fluctuated between 35-60
days with most of the fluctuation occurring in the months prior to the Federal
Funds rate hike. During February and March, we moved the average maturity from
55 days to 35 days as it became clear that the Fed would be raising rates in
response to the accelerating economy. By the end of April, the economy began to
show signs that it was slowing and we moved the target average maturity to 45
days, where it has remained for most of the past five months. Normally in a
period of stable rates and an upward sloping yield curve, we would be inclined
to keep the average maturity slightly longer. However, at this time we feel that
the market is not adequately compensating investors for longer maturity
investments, as the incremental yield pickup for three-month paper versus
one-month paper is only 7 basis points (.07 percent).
OUTLOOK
Looking forward, we expect economic growth to moderate over the next six months.
Although there has been little evidence of inflationary pressures to date, there
is the possibility that wage pressures will ultimately cause inflation to rise
slightly and that the Fed may respond by raising the Federal Funds Rate.
Therefore we believe it is prudent to maintain the target average maturity of
the fund near 45 days for the time being, awaiting further evidence on the
inflation front.
IN CLOSING
We appreciate your investment with Fortis and look forward to serving your
financial needs. If you have any questions, please call us or talk with your
investment advisor.
Sincerely,
/s/ Dean C. Kopperud /s/ Howard G. Hudson
Dean C. Kopperud Howard G. Hudson
President Vice President
October 17, 1997
1
<PAGE>
FORTIS MONEY FUND
Schedule of Investments
September 30, 1997
SHORT-TERM INVESTMENTS-100.06%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
& Poor's
Principal Maturity Rating
Amount Yield Date (Unaudited) Value (a)
----------- --------- ------------ ------------- -------------
<C> <S> <C> <C> <C> <C>
BANKS-16.12%
$4,000,000 Banc One Funding Corp.(c).................... 5.67% 12/10/97 A1 $ 3,956,989
2,300,000 Banc One Funding Corp.(c).................... 5.63% 10/16/97 A1 2,294,729
3,300,000 Deutsche Bank................................ 5.66% 11/10/97 A1+ 3,279,833
3,000,000 Deutsche Bank................................ 5.66% 12/11/97 A1+ 2,967,458
64,000 First Trust Money Market Variable Rate Time
Deposit.................................... 5.47% 10/01/97 A1+ 64,000
1,000,000 First Union National Bank.................... 5.65% 11/24/97 A1 991,765
3,000,000 Norwest Corp................................. 5.65% 12/17/97 A1+ 2,964,773
4,000,000 Toronto-Dominion Holdings USA, Inc........... 5.55% 10/14/97 A1+ 3,992,128
-------------
20,511,675
-------------
BEVERAGE-5.03%
1,500,000 Pepsico, Inc................................. 5.57% 10/03/97 A1 1,499,543
4,900,000 Pepsico, Inc................................. 5.61% 10/03/97 A1 4,898,503
-------------
6,398,046
-------------
BROKERAGE AND INVESTMENT-4.76%
1,800,000 Merrill Lynch & Co., Inc..................... 5.68% 10/30/97 A1+ 1,791,996
4,300,000 Merrill Lynch & Co., Inc..................... 5.66% 12/04/97 A1+ 4,257,803
-------------
6,049,799
-------------
CAPTIVE AUTO FINANCE-9.70%
4,000,000 Ford Motor Credit Corp....................... 5.67% 10/09/97 A1 3,995,102
2,200,000 Ford Motor Credit Corp....................... 5.64% 11/26/97 A1 2,181,246
2,000,000 General Motors Acceptance Corp............... 5.70% 11/10/97 P1* 1,987,733
4,200,000 General Motors Acceptance Corp............... 5.90% 10/27/97 P1* 4,182,771
-------------
12,346,852
-------------
CAPTIVE EQUIPMENT FINANCE-14.46%
3,200,000 IBM Credit Corp.............................. 5.63% 11/03/97 A1 3,183,925
3,300,000 IBM Credit Corp.............................. 5.65% 11/14/97 A1 3,277,817
2,000,000 John Deere Capital Corp...................... 5.65% 11/12/97 A1 1,987,213
4,000,000 John Deere Capital Corp...................... 5.64% 11/18/97 A1 3,970,720
4,000,000 PACCAR Financial Corp........................ 5.66% 11/07/97 A1 3,977,389
2,000,000 PACCAR Financial Corp........................ 5.77% 10/15/97 A1 2,000,160
-------------
18,397,224
-------------
CONSUMER FINANCING-22.59%
6,500,000 American Express Credit Corp................. 5.73% 10/28/97 A1 6,472,944
2,000,000 American General Finance Corp................ 5.64% 11/06/97 A1+ 1,988,940
2,000,000 American General Finance Corp................ 5.65% 11/13/97 A1+ 1,986,790
3,400,000 Beneficial Corp.............................. 5.59% 10/01/97 A1 3,400,000
2,900,000 Beneficial Corp.............................. 5.63% 10/10/97 A1 2,896,013
5,600,000 Commercial Credit Corp....................... 5.65% 11/21/97 A1 5,556,287
6,500,000 Household Finance Corp....................... 5.65% 11/24/97 A1 6,446,375
-------------
28,747,349
-------------
DIVERSIFIED FINANCE-11.81%
2,690,000 Associates Corp. Master Variable Rate Note... 5.45% 10/01/97 A1+ 2,690,000
6,000,000 CIT Group, Inc............................... 5.63% 11/05/97 A1 5,967,975
3,500,000 General Electric Capital Corp................ 5.63% 12/02/97 A1+ 3,466,968
2,900,000 General Electric Capital Corp................ 5.68% 10/06/97 A1 2,897,777
-------------
15,022,720
-------------
FOOD-GROCERY, MISCELLANEOUS-5.85%
4,650,000 Kellogg Co................................... 5.43% 10/07/97 A1+ 4,645,745
2,800,000 Nestle Capital Corp.......................... 5.58% 10/16/97 A1+ 2,793,618
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7,439,363
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</TABLE>
2
<PAGE>
SHORT-TERM INVESTMENTS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's
Principal Maturity Rating
Amount Yield Date (Unaudited) Value (a)
----------- --------- ------------ ------------- -------------
<C> <S> <C> <C> <C> <C>
INDUSTRIAL-2.33%
$3,000,000 Xerox Credit Corp............................ 5.65% 12/08/97 A1 $ 2,968,833
-------------
UTILITIES-ELECTRIC-7.41%
6,500,000 CSW Credit Corp.............................. 5.67% 12/04/97 A1+ 6,436,214
3,000,000 Duke Power Co................................ 5.58% 10/14/97 A1+ 2,994,063
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9,430,277
-------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$127,312,138) (b).......................... $ 127,312,138
-------------
-------------
</TABLE>
(a) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(b) Also represents cost 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". 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 Rating
3
<PAGE>
FORTIS MONEY FUND
Statement of Assets and Liabilities
September 30, 1997
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
<S> <C>
ASSETS
Short-term investments, as detailed in the accompanying schedule, at amortized
cost (approximates market) (Note 1)......................................... $ 127,312,138
Cash on deposit with custodian................................................ 830
Receivables:
Interest and dividends...................................................... 26,341
Deferred registration costs (Note 1).......................................... 38,777
--------------
TOTAL ASSETS.................................................................... 127,378,086
--------------
LIABILITIES
Cash portion of dividends payable............................................. 25,256
Redemptions of capital stock.................................................. 1,500
Payable for investment advisory and management fees (Note 2).................. 63,839
Payable for distribution fees (Note 2)........................................ 60
Accounts payable and accrued expenses......................................... 47,632
--------------
TOTAL LIABILITIES............................................................... 138,287
--------------
NET ASSETS
Net proceeds of capital stock, par value $.01 per share- authorized
50,000,000,000 shares....................................................... $ 127,239,799
--------------
SHARES OUTSTANDING AND NET ASSET VALUE PER SHARE:
Class A shares (based on net assets of $126,546,920 and 126,546,920 shares
outstanding)................................................................ $1.00
--------------
Class B shares (based on net assets of $55,495 and 55,495 shares
outstanding)................................................................ $1.00
--------------
Class C shares (based on net assets of $10,219 and 10,219 shares
outstanding)................................................................ $1.00
--------------
Class H shares (based on net assets of $627,165 and 627,165 shares
outstanding)................................................................ $1.00
--------------
</TABLE>
FORTIS MONEY FUND
Statement of Operations
For the Year Ended September 30, 1997
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
<S> <C>
NET INVESTMENT INCOME:
Income
Interest income............................................................. $ 7,123,452
--------------
Expenses:
Investment advisory and management fees (Note 2)............................ 772,701
Distribution fees (Class B) (Note 2)........................................ 609
Distribution fees (Class C) (Note 2)........................................ 63
Distribution fees (Class H) (Note 2)........................................ 2,102
Legal and auditing fees (Note 2)............................................ 29,162
Custodian fees.............................................................. 22,880
Shareholders' notices and reports........................................... 40,321
Registration fees (Note 1).................................................. 113,538
Directors' fees and expenses................................................ 12,213
Transfer agent expenses (Note 2)............................................ 140,310
Other....................................................................... 7,207
--------------
Total expenses................................................................ 1,141,106
--------------
NET INVESTMENT INCOME........................................................... 5,982,346
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............................ $ 5,982,346
--------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
4
<PAGE>
FORTIS MONEY FUND
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
SEPTEMBER 30, SEPTEMBER 30,
1997 1996
--------------- ---------------
<S> <C> <C>
OPERATIONS
Net investment income......................................................... $ 5,982,346 $ 5,573,925
--------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A..................................................................... (5,968,459) (5,567,690)
Class B..................................................................... (2,997) (2,121)
Class C..................................................................... (320) (1,212)
Class H..................................................................... (10,570) (2,902)
--------------- ---------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS............................................. (5,982,346) (5,573,925)
--------------- ---------------
CAPITAL STOCK TRANSACTIONS (AT CONSTANT $1.00 NET ASSET VALUE PER SHARE):
Proceeds from sale of shares
Class A..................................................................... 402,804,393 289,819,879
Class B..................................................................... 338,532 528,590
Class C..................................................................... 93,504 115,173
Class H..................................................................... 1,439,348 382,158
Proceeds from shares issued as a result of reinvested dividends
Class A..................................................................... 5,416,791 5,017,020
Class B..................................................................... 1,582 1,586
Class C..................................................................... 161 1,139
Class H..................................................................... 7,531 2,280
Less cost of repurchase of shares
Class A..................................................................... (402,049,686) (279,933,849)
Class B..................................................................... (312,470) (502,325)
Class C..................................................................... (83,904) (125,075)
Class H..................................................................... (880,123) (445,978)
--------------- ---------------
NET INCREASE IN NET ASSETS FROM SHARE TRANSACTIONS.............................. 6,775,659 14,860,598
--------------- ---------------
TOTAL INCREASE IN NET ASSETS.................................................... 6,775,659 14,860,598
NET ASSETS:
Beginning of year............................................................. 120,464,140 105,603,542
--------------- ---------------
End of year................................................................... $ 127,239,799 $ 120,464,140
--------------- ---------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
5
<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, 1997, the cost of purchases and proceeds from sales of
short-term securities aggregated $767,997,963 and $761,203,741 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 $4,407 for Class B, $100 for Class C and $3,421
for Class H.
The fund also reimburses Fortis Advisers, Inc. for direct transfer agent
expenses such as postage.
Legal fees and expenses aggregating $10,936 for the year ended September 30,
1997 were paid to a law firm of which the secretary of the fund is a partner.
6
<PAGE>
- --------------------------------------------------------------------------------
3. FINANCIAL HIGHLIGHTS: Selected per share historical data for each of the
Portfolios was as follows:
<TABLE>
<CAPTION>
Class A
---------------------------------------------------------
For the Year Ended September 30,
---------------------------------------------------------
1997 1996 1995 1994 1993
<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 .05 .03 .02
--------- --------- --------- --------- ---------
Distributions to shareholders:
From investment income - net...... (.05) (.05) (.05) (.03) (.02)
--------- --------- --------- --------- ---------
Net asset value, end of period...... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- --------- ---------
Total return @...................... 4.74% 4.74% 5.03% 2.92% 2.36%
Net assets end of period (000s
omitted).......................... $ 126,547 $ 120,375 $ 105,472 $ 105,659 $ 94,399
Ratio of expenses to average daily
net assets........................ .88% .91% .91% .88% .93%
Ratio of net investment income to
average daily net assets.......... 4.64% 4.67% 4.91% 2.92% 2.34%
</TABLE>
<TABLE>
<CAPTION>
Class B Class C Class H
----------------- --------------------------- ---------------------------
For the Year Ended September 30,
-----------------------------------------------------------------------------
1997 1996+ 1997 1996 1995** 1997 1996 1995***
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of
period............................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- ------- ------- -------
Operations:
Investment income - net........... .04 .04 .04 .05 .01 .04 .04 .02
------- ------- ------- ------- ------- ------- ------- -------
Distributions to shareholders:
From investment income - net...... (.04) (.04) (.04) (.05) (.01) (.04) (.04) (.02)
------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of period...... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- ------- ------- -------
Total return @...................... 3.97% 4.11% 4.45% 4.97% 1.33% 4.06% 4.04% 2.52%
Net assets end of period (000s
omitted).......................... $ 55 $ 28 $ 10 $ 1 $ 9 $ 627 $ 60 $ 122
Ratio of expenses to average daily
net assets........................ 1.68% 1.71%* 1.68% 1.46%(a) 1.71%* 1.68% 1.71% 1.71%*
Ratio of net investment income to
average daily net assets.......... 3.94% 3.99%* 3.98% 4.33%(a) 4.46%* 4.02% 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.
(a) Advisers has reimbured 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, ratios
of expenses and net investment income to average daily net assets
would have been 1.71% and 4.08% respectively, for Class C.
7
<PAGE>
INDEPENDENT AUDITOR'S 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, 1997, 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,
1997, and the financial highlights for 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. 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 as of September 30, 1997 and the results of its operations for
the year then ended, the changes in its net assets and the financial highlights
presented for each of the periods stated in the first paragraph above, in
conformity with generally accepted accounting principles.
KPMG Peat Marwick LLP
Minneapolis, Minnesota
November 7, 1997
8
<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 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.
SENIOR VICE PRESIDENT AND DIRECTOR,
FORTIS BENEFITS INSURANCE COMPANY AND
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
Tamara L. Fagely
VICE PRESIDENT AND TREASURER
Howard G. Hudson
VICE PRESIDENT
David A. Peterson
VICE PRESIDENT
Scott R. Plummer
VICE PRESIDENT
Rhonda J. Schwartz
VICE PRESIDENT
Gary N. Yalen
VICE PRESIDENT
Michael J. Radmer
SECRETARY
INVESTMENT MANAGER, REGISTRAR Fortis Advisers, Inc.
AND TRANSFER AGENT BOX 64284, ST. PAUL, MINNESOTA 55164
PRINCIPAL UNDERWRITER Fortis Investors, Inc.
BOX 64284, ST. PAUL, MINNESOTA 55164
CUSTODIAN 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.
9
<PAGE>
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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.
[PHOTO]
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 investments. Fortis is jointly
owned by Fortis AMEV of The Netherlands and Fortis AG of Belgium.
- - FOR MORE INFORMATION, CALL YOUR INVESTMENT REPRESENTATIVE OR FORTIS AT
(800) 800-2638.
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[LOGO] Bulk Rate
U.S. Postage
FORTIS FINANCIAL GROUP PAID
P.O. BOX 64284 Permit No. 3794
ST. PAUL, MN 55164 Minneapolis, MN
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FORTIS MONEY FUND
- - Printed on recycled paper with
40% preconsumer waste and 10%
post consumer waste. Please recycle.
[LOGO]-Registered Trademark- and Fortis-Registered Trademark- are registered
servicemarks of Fortis AMEV and Fortis AG.
95221 (11/97)
