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[LOGO]
FORTIS
Solid partners, flexible solutions-SM-
Everyday investing for anyday goals
Fortis money market
fund annual report
September 30, 1999
FORTIS FINANCIAL GROUP
[GRAPHIC]
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FORTIS MONEY FUND ANNUAL REPORT
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<S> <C>
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 8
BOARD OF DIRECTORS AND OFFICERS 9
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- - TOLL-FREE INFORMATION LINE
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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.
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PORTFOLIO COMPOSITION BY INDUSTRY AS OF 9/30/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
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<S> <C>
MONEY FUND
Portfolio Composition by Industry as of 09/30/99
Diversified Finance 18.3%
Banks 18.2%
Captive Auto Finance 17.5%
Consumer Finance 13.8%
Utilities - Electric 12.1%
Brokerage and Investment 8.1%
Captive Equipment Finance 4.6%
Captive Oil Finance 4.6%
Food 2.8%
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FORTIS MONEY MARKET FUND - ANNUAL REPORT
REVIEW
The U.S. economy is in great shape. Now entering an unprecedented ninth year of
expansion, the U.S. economy is growing at a healthy 4% annual rate while
inflation remains low. A year ago it appeared that the economic problems of
Asia, Russia and Latin America threatened to derail the U.S. expansion. By the
spring of 1999, however, it became evident that many regions of the world were
recovering more quickly than expected and that domestic growth would not slow.
Market sentiment then shifted to concern that the economy would grow too fast
and eventually cause higher inflation. Bond yields rose and the Federal Reserve
Bank (the "Fed") began to raise short-term rates in order to slow down the
economy.
For the year ended September 30, 1999, the fund yielded 4.40% compared to 4.88%
for the year-ended September 30, 1998. The decline in the Fund's yield was due
to a drop in short-term interest rates in the latter half of 1998. The drop in
rates was precipitated by the actions of the Federal Reserve Bank, which lowered
the federal funds rate 0.75% in a series of three 0.25% moves. At the time, the
Fed cited global economic weakness and poor liquidity in the financial markets
as the reason for their lowering interest rates stance in an otherwise healthy
domestic economic environment. Short-term rates remained relatively stable
through the first quarter of 1999 and then began to rise in the second quarter
on the expectation that the Fed would raise short-term interest rates in
response to improving global economic growth and stronger than expected domestic
growth. So far this year the Fed has raised rates 0.50% in two 0.25% increases
and has stated that they are still wary of tight labor markets and their
potentially inflationary implications.
The fund continues to place great emphasis on high quality and liquidity while
looking to target the fund's average maturity at an optimal length. (Maturity is
the length of time between now and the date a security is repaid.) During the
past six months, the fund's average maturity has fluctuated between 35-60 days.
At the end of March, the fund's average maturity was 35 days. By mid-May, we had
extended the average maturity to 60 days, with the view that a near-term change
in rates was unlikely. In late May, a combination of high levels of consumer
spending and tight labor markets led us to believe that the Fed would have to
raise rates to keep inflation in check. As a result we lowered the average
maturity to 35 days, where it remained until early September. At that time
commercial paper issuers began to address their year-end funding needs much
earlier than normal due to their Y2K concerns. This phenomenon made the yields
on longer maturities very attractive. Although our outlook for short-term rates
did not change, we began lengthening the average maturity back to 60 days to
take advantage of the higher yields available on longer dated paper.
OUTLOOK
Looking forward, we expect economic growth to moderate slightly over the next
year as the effects of higher rates take hold. As always, threats to the economy
(such as a stock market correction, a rise in inflation or Y2K problems) still
exist, however, the probability of a significant slowdown appears remote right
now. Productivity gains and global competition have kept overall inflation low,
however rising commodity prices and low unemployment have raised the odds of an
increase in inflation in the coming year. The Fed's recent rate hikes were
intended to preemptively combat inflation and we feel that they will be
successful in doing so.
Sincerely,
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<S> <C>
[SIGNATURE] [SIGNATURE]
Dean C. Kopperud Howard G. Hudson
President Vice-President
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1
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FORTIS MONEY FUND
Schedule of Investments
September 30, 1999
SHORT-TERM INVESTMENTS-99.96%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's
Principal Maturity Rating
Amount Yield Date (Unaudited) Value(a)
- ----------- ----------- ----------- ----------- ------------
<C> <S> <C> <C> <C> <C>
BANKS-18.15%
$8,000,000 Bank of America Corp........................................ 5.93% 02/01/00 A1 $ 7,844,200
5,000,000 Chase Manhattan Corp. (d)................................... 5.46% 01/20/00 A+ 5,000,127
5,000,000 First Union National Bank (d)............................... 5.44% 05/17/00 A+ 5,000,000
8,000,000 Toronto Dominion Holdings USA, Inc.......................... 5.45% 11/30/99 A1 7,929,333
4,645,947 U.S. Bank N.A. Money Market Variable Rate Time Deposit...... 5.17% 10/01/99 A1+ 4,645,947
1,000,000 Wachovia Corp............................................... 5.09% 12/15/99 A+ 1,003,841
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31,423,448
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BROKERAGE AND INVESTMENT-8.08%
8,000,000 Merrill Lynch Corp.......................................... 5.39% 10/20/99 A1 7,977,664
6,000,000 Morgan Stanley Dean Witter (d).............................. 5.55% 02/22/00 A1 6,000,000
------------
13,977,664
------------
CAPTIVE AUTO FINANCE-17.49%
8,000,000 Daimler Chrysler NA Corp.................................... 5.39% 10/18/99 A1 7,980,091
3,200,000 Ford Motor Credit Corp...................................... 5.39% 10/12/99 A1 3,194,828
4,800,000 Ford Motor Credit Corp...................................... 5.38% 10/15/99 A1 4,790,125
3,000,000 General Motors Acceptance Corp.............................. 5.47% 11/17/99 A1 2,979,163
5,000,000 General Motors Acceptance Corp.............................. 5.97% 02/09/00 A1 4,895,564
6,446,000 Toyota Motor Credit Corp.................................... 5.38% 10/19/99 A1 6,428,983
------------
30,268,754
------------
CAPTIVE EQUIPMENT FINANCE-4.58%
8,000,000 PACCAR Financial Corp....................................... 5.45% 12/03/99 A1 7,925,800
------------
CAPTIVE OIL FINANCE-4.61%
8,000,000 Chevron U.S.A., Inc......................................... 5.38% 10/26/99 A1 7,970,667
------------
CONSUMER FINANCE-13.80%
8,000,000 American Express Credit Corp................................ 5.39% 11/03/99 A1 7,961,280
3,700,000 American General Finance Corp............................... 5.39% 10/14/99 A1 3,692,932
4,300,000 American General Finance Corp............................... 5.43% 11/10/99 A1 4,274,630
8,000,000 Household Finance Corp...................................... 5.44% 11/08/99 A1 7,955,160
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23,884,002
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DIVERSIFIED FINANCE-18.30%
7,954,000 Associates Corp. Master Variable Rate Note.................. 5.16% 10/01/99 A1+ 7,954,000
8,000,000 CIT Group Inc............................................... 5.31% 10/06/99 A1 7,994,233
4,300,000 General Electric Capital Corp............................... 5.33% 10/08/99 A1 4,295,644
3,800,000 General Electric Capital Corp............................... 5.42% 10/28/99 A1 3,784,867
7,800,000 Prudential Funding Corp..................................... 5.99% 01/26/00 A1 7,653,477
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31,682,221
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FOOD-2.83%
5,000,000 Kellogg Company Corp........................................ 5.86% 02/01/00 A1 4,903,479
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UTILITIES-ELECTRIC-12.12%
5,000,000 Central SouthWest Credit Corp............................... 5.91% 01/19/00 A1 4,912,611
8,100,000 Duke Energy Corp............................................ 5.31% 10/05/99 A1 8,095,320
8,000,000 Wisconsin Electric Fuel Corp................................ 5.39% 10/22/99 A1 7,975,360
------------
20,983,291
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TOTAL INVESTMENTS IN SECURITIES (COST: $173,019,326) (B).... $173,019,326
============
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(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) Variable Rate Securities; the yield reported is the rate in effect as
of September 30, 1999.
2
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FORTIS MONEY FUND
Statement of Assets and Liabilities
September 30, 1999
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<S> <C>
ASSETS
Short-term investments, as detailed in the accompanying schedule, at
amortized cost (approximates market) (Note 1)..................... $173,019,326
Cash on deposit with custodian...................................... 634
Receivables:
Interest and dividends............................................ 199,223
Deferred registration costs (Note 1)................................ 43,156
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TOTAL ASSETS.......................................................... 173,262,339
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LIABILITIES
Cash portion of dividends payable................................... 33,630
Payable for investment advisory and management fees (Note 2)........ 83,697
Payable for distribution fees (Note 2).............................. 164
Accounts payable and accrued expenses............................... 52,972
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TOTAL LIABILITIES..................................................... 170,463
------------
NET ASSETS
Net proceeds of capital stock, par value $.01 per share-authorized
50,000,000,000 shares............................................. $173,091,876
============
SHARES OUTSTANDING AND NET ASSET VALUE PER SHARE:
Class A shares (based on net assets of $168,080,159 and 168,080,159
shares outstanding)............................................... $1.00
------------
Class B shares (based on net assets of $1,393,024 and 1,393,024
shares outstanding)............................................... $1.00
------------
Class C shares (based on net assets of $1,530,982 and 1,530,982
shares outstanding)............................................... $1.00
------------
Class H shares (based on net assets of $2,087,711 and 2,087,711
shares outstanding)............................................... $1.00
------------
</TABLE>
Statement of Operations
For the Year Ended September 30, 1999
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<TABLE>
<S> <C>
NET INVESTMENT INCOME:
Income
Interest income................................................... $ 8,595,090
-----------
Expenses:
Investment advisory and management fees (Note 2).................. 1,006,853
Distribution fees (Class B) (Note 2).............................. 6,441
Distribution fees (Class C) (Note 2).............................. 5,997
Distribution fees (Class H) (Note 2).............................. 8,855
Legal and auditing fees (Note 2).................................. 32,617
Custodian fees.................................................... 6,100
Shareholders' notices and reports................................. 52,727
Registration fees (Note 1)........................................ 129,168
Directors' fees and expenses (Note 2)............................. 16,497
Transfer agent expenses........................................... 140,279
Other............................................................. 6,061
-----------
Total expenses...................................................... 1,411,595
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NET INVESTMENT INCOME................................................. 7,183,495
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. $ 7,183,495
===========
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
3
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FORTIS MONEY FUND
Statements of Changes in Net Assets
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<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED YEAR ENDED
SEPTEMBER 30, 1999 SEPTEMBER 30, 1998
------------------ ------------------
<S> <C> <C>
OPERATIONS
Net investment income............................................... $ 7,183,495 $ 6,779,137
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DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A........................................................... (7,090,532) (6,744,943)
Class B........................................................... (28,008) (4,300)
Class C........................................................... (26,108) (4,329)
Class H........................................................... (38,847) (25,565)
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TOTAL DISTRIBUTIONS TO SHAREHOLDERS................................... (7,183,495) (6,779,137)
--------------- -------------
CAPITAL STOCK TRANSACTIONS (AT CONSTANT $1.00 NET ASSET VALUE PER
SHARE):
Proceeds from sale of shares
Class A........................................................... 1,129,355,442 661,898,113
Class B........................................................... 1,905,456 685,158
Class C........................................................... 46,755,851 5,185,184
Class H........................................................... 3,252,075 1,451,437
Proceeds from shares issued as a result of reinvested dividends
Class A........................................................... 6,418,477 6,172,248
Class B........................................................... 26,774 3,256
Class C........................................................... 13,579 2,773
Class H........................................................... 36,732 23,161
Less cost of repurchase of shares
Class A........................................................... (1,124,316,309) (637,994,732)
Class B........................................................... (843,716) (439,399)
Class C........................................................... (45,952,739) (4,483,885)
Class H........................................................... (1,751,080) (1,551,779)
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NET INCREASE IN NET ASSETS FROM SHARE TRANSACTIONS.................... 14,900,542 30,951,535
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TOTAL INCREASE IN NET ASSETS.......................................... 14,900,542 30,951,535
NET ASSETS:
Beginning of year................................................... 158,191,334 127,239,799
--------------- -------------
End of year......................................................... $ 173,091,876 $ 158,191,334
=============== =============
</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. 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 within the Fortis Mutual Fund group. 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 under normal conditions.
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 year ended
September 30, 1999, the cost of purchases and proceeds from sales of
short-term securities aggregated $1,572,433,180 and $1,557,631,434
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 $61,936 for Class A, $4,774 for Class B, $1,006
for Class C and $10,636 for Class H.
The fund also reimburses Fortis Advisers, Inc. for direct transfer agent
expenses such as confirms and checkbook production and mailings.
Legal fees and expenses aggregating $17,093 for the year ended September 30,
1999, 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)
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3. FINANCIAL HIGHLIGHTS: Selected per share historical data was as follows:
<TABLE>
<CAPTION>
Class A
---------------------------------------------------------
Year Ended September 30,
---------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year.......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Operations:
Investment income - net................................... .04 .05 .05 .05 .05
-------- -------- -------- -------- --------
Distributions to shareholders:
From investment income - net.............................. (.04) (.05) (.05) (.05) (.05)
-------- -------- -------- -------- --------
Net asset value, end of year................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Total return @.............................................. 4.40% 4.88% 4.74% 4.74% 5.03%
Net assets end of year (000s omitted)....................... $168,080 $156,623 $126,547 $120,375 $105,472
Ratio of expenses to average daily net assets............... .83% .86% .88% .91% .91%
Ratio of net investment income to average daily net
assets.................................................... 4.29% 4.77% 4.64% 4.67% 4.91%
</TABLE>
<TABLE>
<CAPTION>
Class B
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Year Ended September 30,
----------------------------------------------------------
1999 1998 1997 1996+++
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year.......................... $ 1.00 $1.00 $1.00 $1.00
------ ----- ----- -----
Operations:
Investment income - net................................... .04 .04 .04 .04
------ ----- ----- -----
Distributions to shareholders:
From investment income - net.............................. (.04) (.04) (.04) (.04)
------ ----- ----- -----
Net asset value, end of year................................ $ 1.00 $1.00 $1.00 $1.00
------ ----- ----- -----
Total return @.............................................. 3.56% 4.06% 3.97% 4.11%
Net assets end of year (000s omitted)....................... $1,393* $ 305 $ 55 $ 28
Ratio of expenses to average daily net assets............... 1.63% 1.66% 1.68% 1.71%*
Ratio of net investment income to average daily net
assets.................................................... 3.48% 4.00% 3.94% 3.99%*
</TABLE>
<TABLE>
<S> <C>
* Annualized.
+++ 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.
</TABLE>
6
<PAGE>
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3. FINANCIAL HIGHLIGHTS (continued):
<TABLE>
<CAPTION>
Class C
----------------------------------------------------------------------
Year Ended September 30,
----------------------------------------------------------------------
1999 1998 1997 1996 1995++
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year..................... $ 1.00 $1.00 $1.00 $1.00 $1.00
------ ----- ----- ----- -----
Operations:
Investment income - net.............................. .04 .04 .04 .05 .01
------ ----- ----- ----- -----
Distributions to shareholders:
From investment income - net......................... (.04) (.04) (.04) (.05) (.01)
------ ----- ----- ----- -----
Net asset value, end of year........................... $ 1.00 $1.00 $1.00 $1.00 $1.00
------ ----- ----- ----- -----
Total return @......................................... 3.57% 4.12% 4.45% 4.97% 1.33%
Net assets end of year (000s omitted).................. $1,531 $ 714 $ 10 $ 1 $ 9
Ratio of expenses to average daily net assets.......... 1.63% 1.66% 1.68% 1.46%(a) 1.71%*
Ratio of net investment income to average daily net
assets............................................... 3.48% 4.08% 3.98% 4.33%(a) 4.46%*
</TABLE>
<TABLE>
<CAPTION>
Class H
-----------------------------------------------------------------
Year Ended September 30,
-----------------------------------------------------------------
1999 1998 1997 1996 1995+
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year....................... $ 1.00 $1.00 $1.00 $1.00 $1.00
------ ----- ----- ----- -----
Operations:
Investment income - net................................ .04 .04 .04 .04 .02
------ ----- ----- ----- -----
Distributions to shareholders:
From investment income - net........................... (.04) (.04) (.04) (.04) (.02)
------ ----- ----- ----- -----
Net asset value, end of year............................. $ 1.00 $1.00 $1.00 $1.00 $1.00
------ ----- ----- ----- -----
Total return @........................................... 3.55% 4.07% 4.06% 4.04% 2.52%
Net assets end of year (000s omitted).................... $2,088 $ 550 $ 627 $ 60 $ 122
Ratio of expenses to average daily net assets............ 1.63% 1.66% 1.68% 1.71% 1.71%*
Ratio of net investment income to average daily net
assets................................................. 3.51% 3.96% 4.02% 4.03% 4.43%*
</TABLE>
<TABLE>
<S> <C>
* Annualized.
+ 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 ended 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.
</TABLE>
7
<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, 1999, 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,
1999, 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, 1999 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, 1999, and the financial highlights for each
of the periods presented, in conformity with generally accepted accounting
principles.
KPMG LLP
Minneapolis, Minnesota
November 5, 1999
8
<PAGE>
DIRECTORS AND OFFICERS
<TABLE>
<S> <C> <C>
DIRECTORS Richard W. Cutting CPA AND FINANCIAL CONSULTANT
Allen R. Freedman CHAIRMAN AND CHIEF EXECUTIVE OFFICER, FORTIS, INC. MANAGING
DIRECTOR OF
FORTIS INTERNATIONAL, N.V.
Dr. Robert M. Gavin PRESIDENT, CRANBROOK EDUCATION COMMUNITY. PRIOR TO JULY
1996, PRESIDENT MACALESTER COLLEGE
Benjamin S. Jaffray CHAIRMAN, SHEFFIELD GROUP, LTD.
Jean L. King PRESIDENT, COMMUNI-KING
Dean C. Kopperud CHIEF EXECUTIVE OFFICER AND DIRECTOR,
FORTIS ADVISERS, INC. PRESIDENT AND DIRECTOR,
FORTIS INVESTORS, INC. PRESIDENT - FORTIS FINANCIAL GROUP,
FORTIS BENEFITS INSURANCE COMPANY AND SENIOR VICE
PRESIDENT, FORTIS INSURANCE COMPANY
Edward M. Mahoney PRIOR TO JANUARY 1995, CHAIRMAN AND
CHIEF EXECUTIVE OFFICER, FORTIS ADVISERS, INC.,
FORTIS INVESTORS, INC.
Robb L. Prince FINANCIAL AND EMPLOYEE BENEFIT CONSULTANT. PRIOR TO JULY
1995, VICE PRESIDENT AND TREASURER, JOSTENS, INC.
Leonard J. Santow PRINCIPAL, GRIGGS & SANTOW, INC.
Noel 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.
</TABLE>
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
<TABLE>
<S> <C>
INVESTMENT MANAGER, REGISTRAR AND Fortis Advisers, Inc.
TRANSFER AGENT BOX 64284, ST. PAUL, MINNESOTA 55164
PRINCIPAL UNDERWRITER Fortis Investors, Inc.
BOX 64284, ST. PAUL, MINNESOTA 55164
CUSTODIAN U.S. Bank National Association
MINNEAPOLIS, MINNESOTA
GENERAL COUNSEL Dorsey & Whitney LLP
MINNEAPOLIS, MINNESOTA
INDEPENDENT AUDITORS KPMG LLP
MINNEAPOLIS, MINNESOTA
</TABLE>
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 annuities, life insurance and mutual funds
through its broker/dealer Fortis Investors, Inc. We're part of Fortis, Inc.,
a financial services company that provides speciality insurance and
investment products to individuals, businesses, associations and other
financial services organizations throughout the United States.
Fortis, Inc. is part of the international Fortis group, which operates in the
fields of insurance, banking and investments. Fortis' listed companies are
Fortis (B) of Belgium and Fortis (NL) of the Netherlands.
Fortis: Steadfast for YOU!
FORTIS FINANCIAL GROUP
Fund management offered through
Fortis Advisors, Inc. since 1949
Securities offered through Fortis
Investors, Inc., member NASD, SIPC
Insurance products offered through
Fortis Benefits Insurance Company &
Fortis Insurance Company
P.O. Box 64284, St. Paul, MN 55164-0284
Telephone (800) 800-2000
http://www.ffg.us.fortis.com
- --------------------------------------------------------------------------------
FORTIS FINANCIAL GROUP ---------------
P.O. Box 64284 Bulk Rate
St. Paul, MN 55164-0284 U.S. Postage
PAID
Permit No. 3794
Fortis money market fund Minneapolis, MN
---------------
[LOGO] Printed on recycled paper with
40 percent preconsumer waste and ten percent
post consumer waste. Please recycle.
The Fortis brandmark and Fortis-SM- are servicemarks
of Fortis (B) and Fortis (NL).
95221-C- Fortis, Inc. 10/99
