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[LOGO]
FORTIS
Solid partners, flexible solutions-SM-
A CONVENIENT WAY TO INVEST
Fortis Money Fund
Semi-Annual Report
MARCH 31, 1998
FORTIS FINANCIAL GROUP
[GRAPHIC]
<PAGE>
FORTIS MONEY FUND SEMI-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
BOARD OF DIRECTORS AND OFFICERS 9
- - 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
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]
GLOSSARY OF TERMS
Terms defined are in ITALICS in the shareholder letter
AVERAGE MATURITY: The weighted average maturity of the securities in the Fund.
FEDERAL FUNDS ("FED FUNDS") RATE: Interest rate charged by banks with excess
reserves to banks that need the money to meet reserve requirements. Also known
as the FEDERAL RESERVE TARGET RATE.
FEDERAL RESERVE BANK ("THE FED"): Led by its chairman, Alan Greenspan, the
Federal Reserve Bank is the central bank of the United States. The Federal
Reserve Bank is charged with responsibility for implementing policies which
preserve the purchasing power of the U.S. dollar, and encouraging economic
growth. One of the more widely known tools used by the Fed in pursuing its
goals is the FEDERAL FUNDS ("FED FUNDS") RATE.
GROSS DOMESTIC PRODUCT (GDP): The market value of a countries total output of
goods and services.
INFLATION: Increase in prices of goods and services in the U.S. economy.
PORTFOLIO COMPOSITION BY INDUSTRY AS OF 3/31/98
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Banks 23.6%
Consumer Financing 20.1%
Diversified Finance 13.5%
Captive Equipment Finance 11.9%
Captive Auto Finance 8.9%
Food-Grocery, Miscellaneous 5.3%
Utilities-Electric 4.4%
Brokerage and Investment 4.4%
Industrial 3.7%
Oil-Refining 2.7%
Utilities-Gas 1.5%
</TABLE>
DEAR FORTIS SHAREHOLDER,
We're pleased to present the Fortis Money Fund semi-annual report for the
six-month period ended March 31, 1998.
ECONOMIC REVIEW
Over the past six months, the United States economy has continued to exhibit
strong growth and low INFLATION. Increased global competitiveness, high
productivity, and a nearly balanced federal budget have been the foundation of
this desirable economic state.
In this environment, the FEDERAL RESERVE BANK has left the FEDERAL FUNDS RATE
unchanged at 5.50 percent. Despite a stable Federal Funds Rate, short-term
interest rates traded between 5.43 percent and 5.85 percent over the period, as
measured by the thirty-day commercial paper rate. Rates reached their highs in
December as year-end funding pressures temporarily pushed rates up and have
traded in a much tighter range since the beginning of 1998.
The Fund's annualized yield over the past six months was 4.79 percent and 4.63
percent in 1997. The increase in yield was primarily due to two factors.
Firstly, 1997's yield was held down by the lower rates available prior to the
March 25, 1997 increase of the federal funds rate. Secondly, the six month
results were favorably impacted by the higher yields that were available in
December. Prior to the news of Asia's economic problems, we were maintaining the
Fund's AVERAGE MATURITY at forty days, believing that the robust economy might
lead to a tightening of monetary policy in an effort to head off a rise in
inflation. By November, we felt that the extent of Asia's crisis would have a
dampening effect on U.S. economic growth thereby reducing the risk of a
near-term hike in the FEDERAL RESERVE'S TARGET RATE. We then moved the Fund's
average maturity out to fifty days to take advantage of the slightly higher
yields available on longer maturities. Near the end of March, we extended the
average maturity to sixty days for similar reasons.
LOOKING AHEAD
Looking forward, we feel that United States economic growth will remain strong,
although the rate of growth will be tempered somewhat by Asia's economic woes.
Specifically, we believe 1998 Gross Domestic Product, or GDP, growth will
probably moderate to a 2.0 to 2.5 percent level after growing 3.7 percent in
1997. Inflation, which has remained benign during a period of robust economic
growth, is likely to remain so as economic growth decelerates. We have already
seen some early indications that Asia has begun to affect the United States
economy in the form of deteriorating trade statistics and lower commodity
prices. We will maintain the Fund's average maturity at sixty days for the near
term in anticipation of continued neutral policy by the Federal Reserve.
We hope this information is helpful to you and we thank you for investing with
us.
Sincerely,
<TABLE>
<S> <C>
[SIGNATURE] [SIGNATURE]
Dean C. Kopperud Howard G. Hudson
President Vice President
</TABLE>
1
<PAGE>
FORTIS MONEY FUND
Schedule of Investments
(Unaudited)
March 31, 1998
SHORT-TERM INVESTMENTS-100.05%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
Principal Maturity & Poor's
Amount Yield Date Rating Value (a)
----------- --------- ------------ ----------- -------------
<C> <S> <C> <C> <C> <C>
BANKS-23.59%
$6,500,000 Banc One Funding Corp.(d).................... 5.61% 05/08/98 A1 $ 6,463,457
3,000,000 Deutsche Bank AG............................. 5.61% 08/07/98 A1+ 2,942,347
3,500,000 Deutsche Bank AG............................. 5.60% 04/17/98 A1+ 3,491,491
4,000,000 First Union National Bank.................... 5.63% 09/15/98 A1 3,899,800
2,025,902 First Union National Bank.................... 5.62% 09/08/98 A1 1,977,280
6,600,000 Norwest Corp................................. 5.64% 05/22/98 A1+ 6,548,481
4,000,000 Toronto Dominion Holding..................... 5.55% 08/24/98 A1+ 3,914,128
4,833,000 U.S. Bank N.A. Money Market Variable Rate
Time Deposit............................... 5.43% 04/01/98 A1+ 4,833,000
-------------
34,069,984
-------------
BROKERAGE AND INVESTMENT-4.44%
2,500,000 Merrill Lynch & Co., Inc..................... 5.67% 10/16/98 A1+ 2,425,475
4,100,000 Merrill Lynch & Co., Inc..................... 5.68% 09/23/98 A1+ 3,991,378
-------------
6,416,853
-------------
CAPTIVE AUTO FINANCE-8.87%
6,400,000 Ford Motor Credit Corp....................... 5.56% 05/01/98 A1 6,371,200
4,300,000 General Motors Acceptance Corp............... 5.66% 09/18/98 A1 4,189,741
2,300,000 General Motors Acceptance Corp............... 5.70% 08/21/98 A1 2,250,103
-------------
12,811,044
-------------
CAPTIVE EQUIPMENT FINANCE-11.92%
5,000,000 IBM Credit Corp.............................. 5.63% 06/02/98 A1 4,952,725
3,700,000 John Deere Capital Corp...................... 5.56% 04/30/98 A1 3,683,905
2,700,000 John Deere Capital Corp...................... 5.60% 05/20/98 A1 2,680,008
2,500,000 PACCAR Financial Corp........................ 5.71% 11/24/98 A1 2,410,960
3,500,000 PACCAR Financial Corp........................ 5.62% 04/27/98 A1 3,486,047
-------------
17,213,645
-------------
CONSUMER FINANCING-20.10%
5,200,000 American Express Credit Corp................. 5.73% 04/07/98 A1 5,195,225
2,400,000 American General Finance Corp................ 5.65% 06/30/98 A1 2,367,180
2,000,000 American General Finance Corp................ 5.89% 04/15/98 A1 1,995,567
2,200,000 American General Finance Corp................ 5.90% 04/15/98 A1 2,195,115
3,500,000 Beneficial Corp.............................. 5.59% 05/19/98 A1 3,474,753
2,900,000 Beneficial Corp.............................. 5.85% 04/02/98 A1 2,899,543
6,600,000 Commercial Credit Corp....................... 5.64% 06/05/98 A1 6,534,458
4,400,000 Household Finance Corp....................... 5.64% 05/21/98 A1 4,366,328
-------------
29,028,169
-------------
DIVERSIFIED FINANCE-13.50%
232,000 Associates Corp. Master Variable Rate Note... 5.43% 04/01/98 A1+ 232,000
6,400,000 CIT Group, Inc............................... 5.61% 05/28/98 A1 6,344,875
3,400,000 General Electric Capital Corp................ 5.87% 04/22/98 A1+ 3,388,774
3,100,000 General Electric Capital Corp................ 5.61% 06/19/98 A1+ 3,063,129
6,500,000 Prudential Funding Corp...................... 5.60% 05/08/98 A1 6,463,658
-------------
19,492,436
-------------
FOOD-GROCERY, MISCELLANEOUS-5.31%
3,500,000 Kellogg Co................................... 5.61% 04/17/98 A1+ 3,491,429
4,200,000 Nestle Capital Corp.......................... 5.59% 05/05/98 A1+ 4,178,263
-------------
7,669,692
-------------
INDUSTRIAL-3.65%
5,300,000 Xerox Capital Corp........................... 5.63% 05/15/98 A1 5,264,372
-------------
OIL-REFINING-2.75%
4,000,000 Texaco, Inc.................................. 5.63% 05/21/98 A1 3,969,389
-------------
</TABLE>
2
<PAGE>
SHORT-TERM INVESTMENTS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal Maturity & Poor's
Amount Yield Date Rating Value (a)
----------- --------- ------------ ----------- -------------
<C> <S> <C> <C> <C> <C>
UTILITIES-ELECTRIC-4.36%
$6,300,000 Duke Energy Corp............................. 5.55% 04/03/98 A1 $ 6,298,099
-------------
UTILITIES-GAS-1.56%
2,258,000 South Carolina Fuel Co.(e)................... 5.63% 04/16/98 A1 2,252,807
-------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$144,486,490) (b).......................... $ 144,486,490
-------------
-------------
</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) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets.
(d) 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 to other
"accredited investors". This security has been determined to be liquid
under guidelines established by the Board of Directors.
(e) 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 to other
"accredited investors". This security has been identified by portfolio
management as illiquid. The portfolio entered into the following Section
4(2) transaction: March 6, 1998 the portfolio acquired $2,258,000 par South
Carolina Fuel Co. due April 16, 1998 with a cost basis on March 31, 1998,
of $2,252,807. The value of this security at March 31, 1998, is $2,252,807
which represents 1.56% of total net assets.
3
<PAGE>
FORTIS MONEY FUND
Statement of Assets and Liabilities
(Unaudited)
March 31, 1998
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
<S> <C>
ASSETS
Short-term investments, as detailed in the accompanying
schedule, at amortized cost (approximates market) (Note 1).... $144,486,490
Receivables:
Interest and dividends........................................ 23,046
Deferred registration costs (Note 1)............................ 81,959
Prepaid expenses................................................ 5,462
------------
TOTAL ASSETS...................................................... 144,596,957
------------
LIABILITIES
Cash portion of dividends payable............................... 27,553
Payable for investment advisory and management fees (Note 2).... 70,791
Payable for distribution fees (Note 2).......................... 58
Accounts payable and accrued expenses........................... 91,337
------------
TOTAL LIABILITIES................................................. 189,739
------------
NET ASSETS
Net proceeds of capital stock, par value $.01 per
share-authorized 50,000,000,000 shares........................ 144,407,218
------------
TOTAL NET ASSETS.................................................. $144,407,218
------------
------------
SHARES OUTSTANDING AND NET ASSET VALUE PER SHARE:
Class A shares (based on net assets of $143,706,084 and
143,706,084 shares outstanding)............................... $1.00
------------
Class B shares (based on net assets of $108,774 and 108,774
shares outstanding)........................................... $1.00
------------
Class C shares (based on net assets of $69,223 and 69,223 shares
outstanding).................................................. $1.00
------------
Class H shares (based on net assets of $523,137 and 523,137
shares outstanding)........................................... $1.00
------------
</TABLE>
FORTIS MONEY FUND
Statement of Operations
(Unaudited)
For the Six-Month Period Ended March 31, 1998
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
<S> <C>
NET INVESTMENT INCOME:
Income
Interest income................................................ $3,808,436
-----------
Expenses:
Investment advisory and management fees (Note 2)............... 403,038
Distribution fees (Class B) (Note 2)........................... 408
Distribution fees (Class C) (Note 2)........................... 163
Distribution fees (Class H) (Note 2)........................... 2,332
Legal and auditing fees (Note 2)............................... 14,360
Custodian fees................................................. 8,477
Shareholders' notices and reports.............................. 22,438
Registration fees (Note 1)..................................... 55,094
Directors' fees and expenses................................... 8,527
Transfer agent expenses (Note 2)............................... 72,751
Other.......................................................... 3,560
-----------
Total expenses................................................... 591,148
-----------
NET INVESTMENT INCOME.............................................. 3,217,288
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............... $3,217,288
-----------
-----------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
4
<PAGE>
FORTIS MONEY FUND
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
FOR THE
SIX-MONTH FOR THE
PERIOD ENDED YEAR ENDED
MARCH 31, 1998 SEPTEMBER 30,
(UNAUDITED) 1997
-------------- --------------
<S> <C> <C>
OPERATIONS
Net investment income......................... $ 3,217,288 $ 5,982,346
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A..................................... (3,202,788) (5,968,459)
Class B..................................... (2,053) (2,997)
Class C..................................... (827) (320)
Class H..................................... (11,620) (10,570)
-------------- --------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS............. (3,217,288) (5,982,346)
-------------- --------------
CAPITAL STOCK TRANSACTIONS (AT CONSTANT $1.00
NET ASSET VALUE PER SHARE):
Proceeds from sale of shares
Class A..................................... 286,788,564 402,804,393
Class B..................................... 256,216 338,532
Class C..................................... 61,178 93,504
Class H..................................... 494,939 1,439,348
Proceeds from shares issued as a result of
reinvested dividends
Class A..................................... 2,914,222 5,416,791
Class B..................................... 1,345 1,582
Class C..................................... 826 161
Class H..................................... 10,401 7,531
Less cost of repurchase of shares
Class A..................................... (272,543,622) (402,049,686)
Class B..................................... (204,282) (312,470)
Class C..................................... (3,000) (83,904)
Class H..................................... (609,368) (880,123)
-------------- --------------
NET INCREASE IN NET ASSETS FROM SHARE
TRANSACTIONS.................................. 17,167,419 6,775,659
-------------- --------------
TOTAL INCREASE IN NET ASSETS.................... 17,167,419 6,775,659
NET ASSETS:
Beginning of period........................... 127,239,799 120,464,140
-------------- --------------
End of period................................. $ 144,407,218 $ 127,239,799
-------------- --------------
-------------- --------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
5
<PAGE>
FORTIS MONEY FUND
Notes to Financial Statements
(Unaudited)
- --------------------------------------------------------------------------------
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 trade date. Interest income including amortization of
premium and discount, is recorded on the accrual basis. For the period ended
March 31, 1998, the cost of purchases and proceeds from sales of short-term
securities aggregated $451,617,882 and $434,443,530 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.
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 $115 for Class A, $1,585 for Class B, $0 for Class
C and $12,942 for Class H.
The fund also reimburses Fortis Advisers, Inc. for direct transfer agent
expenses such as postage.
Legal fees and expenses aggregating $5,385 for the period ended March 31,
1998, 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 the Portfolio
was as follows:
<TABLE>
<CAPTION>
Class A
-------------------------------------------------------------------------
Year Ended September 30,
-------------------------------------------------------------------------
1998** 1997 1996 1995 1994 1993
<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:
Investment income - net............... .02 .05 .05 .05 .03 .02
--------- --------- --------- --------- --------- --------
Distributions to shareholders:
From investment income - net.......... (.02) (.05) (.05) (.05) (.03) (.02)
--------- --------- --------- --------- --------- --------
Net asset value, end of period.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- --------- --------- --------
Total return @.......................... 2.41% 4.74% 4.74% 5.03% 2.92% 2.36%
Net assets end of period (000s
omitted).............................. $ 143,706 $ 126,547 $ 120,375 $ 105,472 $ 105,659 $ 94,399
Ratio of expenses to average daily net
assets................................ .88%* .88% .91% .91% .88% .93%
Ratio of net investment income to
average daily net assets.............. 4.79%* 4.64% 4.67% 4.91% 2.92% 2.34%
</TABLE>
<TABLE>
<CAPTION>
Class B
--------------------------
Year Ended September 30,
--------------------------
1998** 1997 1996+++
<S> <C> <C> <C>
- ---------------------------------------------------------------------
Net asset value, beginning of period.... $1.00 $ 1.00 $1.00
------ ------ ------
Operations:
Investment income - net............... .02 .04 .04
------ ------ ------
Distributions to shareholders:
From investment income - net.......... (.02) (.04) (.04)
------ ------ ------
Net asset value, end of period.......... $1.00 $ 1.00 $1.00
------ ------ ------
Total return @.......................... 2.03% 3.97% 4.11%
Net assets end of period (000s
omitted).............................. $ 109 $ 55 $ 28
Ratio of expenses to average daily net
assets................................ 1.68%* 1.68% 1.71%*
Ratio of net investment income to
average daily net assets.............. 3.99%* 3.94% 3.99%*
</TABLE>
* Annualized.
** For the six-month period ended March 31, 1998.
+++ For the period from October 9, 1995 (date of first investment) to
September 30, 1996.
@ These are the portfolio's total returns during the periods, including
reinvestment of all distributions.
7
<PAGE>
FORTIS MONEY FUND
Notes to Financial Statements (continued)
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
3. FINANCIAL HIGHLIGHTS (continued):
Class C
--------------------------------------------
Year Ended September 30,
--------------------------------------------
1998** 1997 1996 1995++
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- --------
Operations:
Investment income - net............... .02 .04 .05 .01
-------- -------- -------- --------
Distributions to shareholders:
From investment income - net.......... (.02) (.04) (.05) (.01)
-------- -------- -------- --------
Net asset value, end of period.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- --------
Total return @.......................... 2.02% 4.45% 4.97% 1.33%
Net assets end of period (000s
omitted).............................. $ 69 $ 10 $ 1 $ 9
Ratio of expenses to average daily net
assets................................ 1.68%* 1.68% 1.46%(a) 1.71%*
Ratio of net investment income to
average daily net assets.............. 3.99%* 3.98% 4.33%(a) 4.46%*
</TABLE>
<TABLE>
<CAPTION>
Class H
--------------------------------------------
Year Ended September 30,
--------------------------------------------
1998** 1997 1996 1995+
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- --------
Operations:
Investment income - net............... .02 .04 .04 .02
-------- -------- -------- --------
Distributions to shareholders:
From investment income - net.......... (.02) (.04) (.04) (.02)
-------- -------- -------- --------
Net asset value, end of period.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- --------
Total return @.......................... 2.03% 4.06% 4.04% 2.52%
Net assets end of period (000s
omitted).............................. $ 523 $ 627 $ 60 $ 122
Ratio of expenses to average daily net
assets................................ 1.68%* 1.68% 1.71% 1.71%*
Ratio of net investment income to
average daily net assets.............. 3.99%* 4.02% 4.03% 4.43%*
</TABLE>
* Annualized.
** For the six-month period ended March 31, 1998.
+ For the period from March 16, 1995 (date of first investment) to
September 30, 1995.
++ For the period from June 14, 1995 (date of first investment) to
September 30, 1995.
@ These are the portfolio's total returns during the periods, including
reinvestment of all distributions.
(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.
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
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 Fortis Advisers, Inc.
AND 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 Peat Marwick LLP
MINNEAPOLIS, MINNESOTA
The use of this material is authorized only when preceded or accompanied by a
prospectus.
9
<PAGE>
[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 mutual funds, annuities and life insurance
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 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.
Fortis: Steadfast for YOU!
FORTIS FINANCIAL GROUP
Fortis Advisers, Inc.
(fund management since 1949)
Fortis Investors, Inc.
(principal underwriter; member NASD, SIPC)
Fortis Benefits Insurance Company
& Fortis Insurance Company
(issuers of FFG's insurance products)
P.O. Box 64284, St. Paul, MN 55164
Telephone (800) 800-2000
http://www.ffg.us.fortis.com
- --------------------------------------------------------------------------------
FORTIS FINANCIAL GROUP ---------------
P.O. Box 64284 Bulk Rate
St. Paul, MN 55164 U.S. Postage
PAID
Permit No. 3794
FORTIS MONEY FUND Minneapolis, MN
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[LOGO] Printed on recycled paper with
40% preconsumer waste and 10%
post consumer waste. Please recycle.
The Fortis logo and Fortis-SM- are servicemarks
of Fortis AMEV and Fortis AG.
95379-C- Fortis 5/98
