<PAGE>
[LOGO]
FORTIS
Solid partners, flexible solutions-SM-
Everyday investing for anyday goals
Fortis money market
fund annual report
September 30, 2000
FORTIS FINANCIAL GROUP
[Father and child]
<PAGE>
FORTIS MONEY FUND ANNUAL REPORT
CONTENTS
LETTER TO SHAREHOLDERS 1
SCHEDULE OF INVESTMENTS 2
STATEMENT OF ASSETS AND LIABILITIES 3
STATEMENT OF OPERATIONS 3
STATEMENTS OF CHANGES IN NET ASSETS 4
NOTES TO FINANCIAL STATEMENTS 5
INDEPENDENT AUDITORS' REPORT 8
DIRECTORS AND OFFICERS 9
- TOLL-FREE PERSONAL ASSISTANCE
- Shareholder Services
- (800) 800-2000, Ext. 3012
- 7:30 a.m. to 7:00 p.m. CST, Monday thru Friday
- 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>
PORTFOLIO COMPOSITION BY INDUSTRY AS OF 09/30/2000
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Finance-Consumer Lending 16.8%
Finance-Captive Auto 16.0%
Finance-Captive Equipment 13.4%
Other 13.0%
Finance-Commercial Banking 8.9%
Finance-International Trade Financing 8.5%
Food Manufacturing-Other 5.0%
Finance-Depository Credit Banking 4.9%
Finance-Credit Card Issuing 4.5%
Finance-Other Financial Investment Activities 4.5%
Petroleum and Coal-Products Manufacturing 4.5%
</TABLE>
FORTIS MONEY MARKET FUND - ANNUAL REPORT
REVIEW
The U.S. economy is on track to have another stellar year in 2000. Real GDP
growth is likely to be over 5.0% for the year, fueled by strong consumer and
capital spending. The unemployment rate is only 3.9% and the government is
expected to run a $250 billion surplus. Despite the strength of the economy, the
stock market is having a tough year in 2000. Through September, all the major
stock indices have posted negative year-to-date returns. Money market funds have
provided a safe haven during this time of volatile equity returns.
For the year ended September 30, 2000, the fund returned 5.48% for Class A
compared to 4.40% for the year ending September 30, 1999. This year's higher
returns were due to the rise in short-term interest rates that was precipitated
by the actions of the Fed. Citing concerns over the inflationary implications of
a tight labor market and rapid economic growth, the Fed raised the federal funds
rate 1.25% over the past year, beginning with a 0.25% increase in November 1999
and ending with a 0.50% increase in May 2000. Money market yields have benefited
from the higher rates because the yields on short-term securities generally
track the federal funds rate very closely.
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 year, the fund's average maturity has fluctuated between 25-60 days. Last
September, 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. We responded by lengthening the
average maturity to 60 days in order to take advantage of the higher yields
available on longer dated paper. Once year-end passed, we began shortening the
average maturity to 30 days, reflecting our opinion that the market was not
pricing in a high enough probability of rising short-term rates. By late June,
it seemed that the economy was slowing and that the Fed would not have to raise
rates any further. As a result, we extended the average maturity of the fund to
40-50 days.
OUTLOOK
Short-term rates are likely to remain in a tight range over the next few months.
The U.S. economy has moderated since the beginning of the year as the effects of
higher interest rates, rising oil prices and a sluggish stock market began to
limit consumer spending. However, the job market remains in great shape and
consumer confidence is high, suggesting that spending is unlikely to slow
significantly in the near future. Recent Fed statements indicate that they are
still worried about the potential for rising inflation due to tight labor
markets and high energy prices. Our feeling is that the economy will slow enough
to keep the Fed from raising rates further but not enough to force them to lower
rates.
Sincerely,
<TABLE>
<S> <C>
/s/ Dean C. Kopperud /s/ Howard G. Hudson
-------------------- --------------------
Dean C. Kopperud Howard G. Hudson
President Vice-President
</TABLE>
1
<PAGE>
FORTIS MONEY FUND
Schedule of Investments
September 30, 2000
SHORT-TERM INVESTMENTS-100.02%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's
Principal Maturity Rating
Amount Yield Date (Unaudited) Value (a)
----------- ----- -------- ----------- ------------
<C> <S> <C> <C> <C> <C>
FINANCE-CAPTIVE AUTO-15.99%
$8,900,000 DaimlerChrysler Corp......................... 6.67% 11/22/00 A1 $ 8,815,225
4,900,000 Ford Motor Credit Corp....................... 6.70% 10/10/00 A1 4,891,153
3,900,000 General Motors Acceptance Corp............... 6.68% 11/27/00 A1 3,859,284
5,000,000 General Motors Acceptance Corp............... 6.68% 11/21/00 A1 4,953,200
8,900,000 Toyota Motor Credit Corp. (e)................ 6.58% 10/02/00 A1+ 8,896,806
------------
31,415,668
------------
FINANCE-CAPTIVE EQUIPMENT-13.43%
8,600,000 IBM Credit Corp.............................. 6.69% 10/03/00 A1 8,595,327
8,900,000 John Deere Capital Corp...................... 6.61% 10/30/00 A1 8,851,940
9,000,000 PACCAR Financial Corp........................ 6.68% 11/09/00 A1+ 8,935,200
------------
26,382,467
------------
FINANCE-CAPTIVE OIL-2.54%
5,000,000 Chevron Oil Finance Co....................... 6.60% 10/12/00 A1 4,989,183
------------
FINANCE-COMMERCIAL BANKING-8.92%
8,800,000 Banc One Corp................................ 6.61% 11/08/00 A1 8,738,510
8,900,000 Wells Fargo & Co............................. 6.66% 12/13/00 A1 8,781,818
------------
17,520,328
------------
FINANCE-CONSUMER LENDING-16.76%
6,457,000 Associates Corp. Master Variable Rate
Note (d)................................... 6.50% 10/01/00 A1 6,457,000
8,800,000 CIT Group, Inc............................... 6.63% 10/04/00 A1 8,793,664
8,800,000 Household Finance Corp....................... 6.61% 10/06/00 A1 8,790,496
8,900,000 Prudential Funding Corp...................... 6.61% 10/05/00 A1 8,891,965
------------
32,933,125
------------
FINANCE-CREDIT CARD ISSUING-4.48%
8,900,000 American Express Credit Corp................. 6.62% 11/29/00 A1 8,804,177
------------
FINANCE-DEPOSITORY CREDIT BANKING-4.87%
6,000,000 First Union National Bank (d)................ 6.67% 05/16/01 A+ 6,000,000
3,555,947 U.S. Bank N.A. Money Market Variable Rate
Time Deposit (d)........................... 6.41% 10/01/00 A1+ 3,555,947
------------
9,555,947
------------
FINANCE-INSURANCE CARRIERS-2.44%
4,800,000 American General Finance Corp................ 6.71% 10/05/00 A1 4,795,660
------------
FINANCE-INTERNATIONAL TRADE FINANCING-8.54%
8,900,000 Deutsche Bank AG............................. 6.64% 12/05/00 A1+ 8,794,921
8,000,000 Toronto Dominion Holdings USA, Inc........... 6.62% 10/10/00 A1+ 7,985,645
------------
16,780,566
------------
FINANCE-OTHER FINANCIAL INVESTMENT
ACTIVITIES-4.54%
9,000,000 General Electric Capital Corp................ 6.68% 11/15/00 A1+ 8,925,480
------------
FINANCE-SECURITIES AND COMMODITY CONTRACTS
AND BROKERAGE-3.56%
7,000,000 Merrill Lynch & Co., Inc. (d)................ 6.62% 09/13/01 AA- 7,001,309
------------
FOOD MANUFACTURING-OTHER -4.98%
9,800,000 Nestle Capital Corp.......................... 6.55% 10/11/00 A1 9,780,805
------------
PETROLEUM AND COAL-PRODUCTS MANUFACTURING
-4.52%
8,900,000 Texaco Capital, Inc.......................... 6.62% 10/16/00 A1 8,874,447
------------
UTILITIES-ELECTRIC GENERATION, TRANSMISSION
AND DISTRIBUTION-4.45%
8,800,000 Duke Energy Corp............................. 6.62% 11/03/00 A1 8,746,310
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$196,505,472) (b).......................... $196,505,472
============
</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) Variable Rate Securities; the yield reported is the rate in effect as of
September 30, 2000.
(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: September 8, 2000 the portfolio acquired
$8,900,000 par Toyota Motor Credit Corp., due October 2, 2000 with a cost
basis on September 30, 2000, of $8,896,806. The value of this security at
September 30, 2000, is $8,896,806 which represents 4.53% of total net
assets.
2
<PAGE>
FORTIS MONEY FUND
Statement of Assets and Liabilities
September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
ASSETS
Short-term investments, as detailed in the
accompanying schedule, at amortized cost
(approximates market) (Note 1)................ $196,505,472
Receivables:
Interest...................................... 135,197
Subscriptions of capital stock................ 25
Deferred registration costs (Note 1)............ 43,656
------------
TOTAL ASSETS...................................... 196,684,350
------------
LIABILITIES
Bank overdraft.................................. 1,009
Cash portion of dividends payable............... 45,219
Payable for investment advisory and management
fees (Note 2)................................. 94,054
Payable for distribution fees (Note 2).......... 76
Accounts payable and accrued expenses........... 80,473
------------
TOTAL LIABILITIES................................. 220,831
------------
NET ASSETS
Net proceeds of capital stock, par value $.01
per share -- authorized 50,000,000,000
shares........................................ $196,463,519
============
SHARES OUTSTANDING AND NET ASSET VALUE PER SHARE:
Class A shares (based on net assets of
$193,000,567 and 193,000,567 shares
outstanding).................................. $1.00
------------
Class B shares (based on net assets of
$1,340,489 and 1,340,489 shares
outstanding).................................. $1.00
------------
Class C shares (based on net assets of $172,359
and 172,359 shares outstanding)............... $1.00
------------
Class H shares (based on net assets of
$1,950,104 and 1,950,104 shares
outstanding).................................. $1.00
------------
</TABLE>
Statement of Operations
For the Year Ended September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
NET INVESTMENT INCOME:
Income
Interest income............................... $12,023,523
-----------
Expenses:
Investment advisory and management fees (Note
2)........................................... 1,167,308
Distribution fees (Class B) (Note 2).......... 12,975
Distribution fees (Class C) (Note 2).......... 2,490
Distribution fees (Class H) (Note 2).......... 18,854
Registration fees (Note 1).................... 115,749
Legal and auditing fees (Note 2).............. 23,914
Directors' fees and expenses.................. 18,809
Custodian fees................................ 15,440
Shareholders' notices and reports............. 61,575
Transfer agent expenses....................... 180,163
Other......................................... 6,496
-----------
Total expenses.................................. 1,623,773
-----------
NET INVESTMENT INCOME............................. 10,399,750
-----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS...................................... $10,399,750
===========
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
3
<PAGE>
FORTIS MONEY FUND
Statements of Changes in Net Assets
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED YEAR ENDED
SEPTEMBER 30, 2000 SEPTEMBER 30, 1999
------------------ ------------------
<S> <C> <C>
OPERATIONS
Net investment income........................... $ 10,399,750 $ 7,183,495
------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A....................................... (10,205,984) (7,090,532)
Class B....................................... (73,282) (28,008)
Class C....................................... (13,689) (26,108)
Class H....................................... (106,795) (38,847)
------------- ---------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS............... (10,399,750) (7,183,495)
------------- ---------------
CAPITAL STOCK TRANSACTIONS (AT CONSTANT $1.00 NET
ASSET VALUE PER SHARE):
Proceeds from sale of shares
Class A....................................... 409,454,963 1,129,355,442
Class B....................................... 4,736,195 1,905,456
Class C....................................... 1,575,618 46,755,851
Class H....................................... 5,841,823 3,252,075
Proceeds from shares issued as a result of
reinvested dividends
Class A....................................... 9,540,536 6,418,477
Class B....................................... 68,390 26,774
Class C....................................... 11,684 13,579
Class H....................................... 84,873 36,732
Less cost of repurchase of shares
Class A....................................... (394,075,091) (1,124,316,309)
Class B....................................... (4,857,120) (843,716)
Class C....................................... (2,945,925) (45,952,739)
Class H....................................... (6,064,303) (1,751,080)
------------- ---------------
NET INCREASE IN NET ASSETS FROM SHARE
TRANSACTIONS.................................... 23,371,643 14,900,542
------------- ---------------
TOTAL INCREASE IN NET ASSETS...................... 23,371,643 14,900,542
NET ASSETS:
Beginning of year............................. 173,091,876 158,191,334
------------- ---------------
End of year................................... $ 196,463,519 $ 173,091,876
============= ===============
</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 to maximize 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 Family. 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 market
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, 2000, the cost of purchases and proceeds from sales of
short-term securities aggregated $1,436,167,101 and $1,412,680,955,
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.
ILLIQUID SECURITIES: At September 30, 2000, investments in securities for the
fund included an issue that is illiquid. Fortis Money Fund currently limits
investments of illiquid securities to 5% of total net assets, at market
value, at the date of purchase. The aggregate value at September 30, 2000,
was $8,896,806 which represents 4.53% of total net assets. Pursuant to
guidelines adopted by the Board of Directors, certain unregistered securities
are determined to be liquid and are not included within the percent
limitations specified above.
USE OF ESTIMATES: The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of America
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 $36,842 for Class A, $13,558 for Class B, $763 for
Class C and $50,115 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 $4,957 for the year ended September 30,
2000, were paid to a law firm of which the secretary of the fund is a
partner.
5
<PAGE>
FORTIS MONEY FUND
Notes to Financial Statements (continued)
--------------------------------------------------------------------------------
3. FINANCIAL HIGHLIGHTS: Selected per share historical data was as follows:
<TABLE>
<CAPTION>
Class A
----------------------------------------------------
Year Ended September 30,
----------------------------------------------------
2000 1999 1998 1997 1996
<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............... .05 .04 .05 .05 .05
-------- -------- -------- -------- --------
Distributions to shareholders:
From investment income - net.......... (.05) (.04) (.05) (.05) (.05)
-------- -------- -------- -------- --------
Net asset value, end of year............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Total Return @.......................... 5.48% 4.40% 4.88% 4.74% 4.74%
Net assets end of year (000s omitted)... $193,001 $168,080 $156,623 $126,547 $120,375
Ratio of expenses to average daily net
assets................................ .82% .83% .86% .88% .91%
Ratio of net investment income to
average daily net assets.............. 5.35% 4.29% 4.77% 4.64% 4.67%
</TABLE>
@ These are the total returns during the periods, including reinvestment
of all distributions.
<TABLE>
<CAPTION>
Class B
---------------------------------------
Year Ended September 30,
---------------------------------------
2000 1999 1998 1997 1996+
<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............... .05 .04 .04 .04 .04
------ ------ ----- ----- -----
Distributions to shareholders:
From investment income - net.......... (.05) (.04) (.04) (.04) (.04)
------ ------ ----- ----- -----
Net asset value, end of year............ $ 1.00 $ 1.00 $1.00 $1.00 $1.00
------ ------ ----- ----- -----
Total Return @.......................... 4.64% 3.56% 4.06% 3.97% 4.11%
Net assets end of year (000s omitted)... $1,340 $1,393 $ 305 $ 55 $ 28
Ratio of expenses to average daily net
assets................................ 1.62% 1.63% 1.66% 1.68% 1.71%*
Ratio of net investment income to
average daily net assets.............. 4.51% 3.48% 4.00% 3.94% 3.99%*
</TABLE>
* Annualized.
+ For the period for October 9, 1995 (date of first investment) to
September 30, 1996.
@ These are the total returns during the periods, including reinvestment
of all distributions.
6
<PAGE>
--------------------------------------------------------------------------------
3. FINANCIAL HIGHLIGHTS (continued):
<TABLE>
<CAPTION>
Class C
--------------------------------------
Year Ended September 30,
--------------------------------------
2000 1999 1998 1997 1996
<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............... .05 .04 .04 .04 .05
----- ------ ----- ----- -----
Distributions to shareholders:
From investment income - net.......... (.05) (.04) (.04) (.04) (.05)
----- ------ ----- ----- -----
Net asset value, end of year............ $1.00 $ 1.00 $1.00 $1.00 $1.00
----- ------ ----- ----- -----
Total Return @.......................... 4.63% 3.57% 4.12% 4.45% 4.97%
Net assets end of year (000s omitted)... $ 172 $1,531 $ 714 $ 10 $ 1
Ratio of expenses to average daily net
assets................................ 1.62% 1.63% 1.66% 1.68% 1.46%(a)
Ratio of net investment income to
average daily net assets.............. 4.39% 3.48% 4.08% 3.98% 4.33%(a)
</TABLE>
@ These are the total returns during the periods, including reinvestment
of all distributions.
(a) Advisers has reimbursed 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>
<CAPTION>
Class H
---------------------------------------
Year Ended September 30,
---------------------------------------
2000 1999 1998 1997 1996
<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............... .05 .04 .04 .04 .04
------ ------ ----- ----- -----
Distributions to shareholders:
From investment income - net.......... (.05) (.04) (.04) (.04) (.04)
------ ------ ----- ----- -----
Net asset value, end of year............ $ 1.00 $ 1.00 $1.00 $1.00 $1.00
------ ------ ----- ----- -----
Total Return @.......................... 4.63% 3.55% 4.07% 4.06% 4.04%
Net assets end of year (000s omitted)... $1,950 $2,088 $ 550 $ 627 $ 60
Ratio of expenses to average daily net
assets................................ 1.62% 1.63% 1.66% 1.68% 1.71%
Ratio of net investment income to
average daily net assets.............. 4.52% 3.51% 3.96% 4.02% 4.03%
</TABLE>
@ These are the total returns during the periods, including reinvestment
of all distributions.
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, 2000, 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,
2000, and the financial highlights for each of 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 auditing standards generally accepted
in the United States of America. 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. Our procedures included confirmation of
securities owned as of September 30, 2000, by correspondence with the custodian.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and the financial highlights referred
to above present fairly, in all material respects, the financial position of
Fortis Money Fund at September 30, 2000 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, 2000, and the financial highlights for each
of the periods presented, in conformity with accounting principles generally
accepted in the United States of America.
KPMG LLP
Minneapolis, Minnesota
November 3, 2000
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
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
Phillip O. Peterson MUTUAL FUND INDUSTRY CONSULTANT; PARTNER OF KPMG LLP,
THROUGH JUNE 1999
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 F. Schenker MARKETING CONSULTANT. PRIOR TO MAY 1996, SENIOR VICE
PRESIDENT OF MARKETING & STRATEGIC PLANNING, ROLLERBLADE,
INC.
Dr. Lemma W. Senbet CONSULTANT, INTERNATIONAL FINANCIAL INSTITUTIONS, THE
WILLIAM E. MAYER PROFESSOR OF FINANCE AND CHAIR, FINANCE
DEPARTMENT, UNIVERSITY OF MARYLAND, COLLEGE PARK, MD
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 N.A.
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-
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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 provides a wide selection of investment products
including annuities, life insurance and mutual funds. 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 issued by
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
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FORTIS FINANCIAL GROUP ---------------
P.O. Box 64284 PRSRT STD
St. Paul, MN 55164-0284 U.S. Postage
PAID
Permit No. 3794
Fortis Money Fund Minneapolis, MN
---------------
The Fortis brandmark and Fortis-Registered Trademark- are servicemarks
of Fortis (B) and Fortis (NL).
95221-C- Fortis, Inc. 11/00
