<PAGE>
[FORTIS LOGO]
[LOGO] [LOGO]
FORTIS ADVANTAGE FORTIS CAPITAL FUND
ASSET ALLOCATION PORTFOLIO
[LOGO] [LOGO] [LOGO]
FORTIS FIDUCIARY FUND FORTIS GROWTH FUND FORTIS ADVANTAGE
CAPITAL APPRECIATION PORTFOLIO
FORTIS
STOCK FUNDS
ANNUAL REPORT
AUGUST 31, 1995
<PAGE>
CONTENTS
LETTER TO SHAREHOLDERS 2
SCHEDULE OF INVESTMENTS
FORTIS ADVANTAGE ASSET ALLOCATION PORTFOLIO 8
FORTIS CAPITAL FUND 12
FORTIS FIDUCIARY FUND 14
FORTIS GROWTH FUND 16
FORTIS ADVANTAGE CAPITAL APPRECIATION PORTFOLIO 18
STATEMENTS OF ASSETS AND LIABILITIES 20
STATEMENTS OF OPERATIONS 21
STATEMENTS OF CHANGES IN NET ASSETS
FORTIS ADVANTAGE ASSET ALLOCATION PORTFOLIO 22
FORTIS CAPITAL FUND 23
FORTIS FIDUCIARY FUND 24
FORTIS GROWTH FUND 25
FORTIS ADVANTAGE CAPITAL APPRECIATION PORTFOLIO 26
NOTES TO FINANCIAL STATEMENTS 27
INDEPENDENT AUDITORS' REPORT 34
FEDERAL INCOME TAX INFORMATION 35
BOARD OF DIRECTORS AND OFFICERS 36
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- - TOLL-FREE INFORMATION LINE
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transaction activity or net asset
value information
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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) 800-2638.
TO ORDER PROSPECTUSES OR SALES LITERATURE FOR ANY FORTIS PRODUCT, CALL (800)
800-2638, EXT. 4579.
HIGHLIGHTS
FOR THE YEAR ENDED AUGUST 31, 1995
<TABLE>
<CAPTION>
CLASS A CLASS B* CLASS C* CLASS H*
-------- -------- -------- --------
<S> <C> <C> <C> <C>
FORTIS ADVANTAGE ASSET ALLOCATION PORTFOLIO**
NET ASSET VALUE PER SHARE:
Beginning of period............................. $ 14.44 $ 14.27 $ 14.27 $ 14.27
End of period................................... $ 16.52 $ 16.46 $ 16.41 $ 16.44
TOTAL RETURN@ 18.25% 19.00% 18.64% 18.86%
DISTRIBUTIONS PER SHARE:
From net investment income...................... $0.3950 $0.3650 $0.3650 $0.3650
From net realized gains on investments.......... $0.0896 $0.0896 $0.0896 $0.0896
FORTIS CAPITAL FUND
NET ASSET VALUE PER SHARE:
Beginning of period............................. $ 18.36 $ 18.35 $ 18.35 $ 18.35
End of period................................... $ 21.22 $ 21.14 $ 21.13 $ 21.14
TOTAL RETURN@ 21.49% 20.74% 20.68% 20.74%
DISTRIBUTIONS PER SHARE:
From net investment income...................... $ 0.079 $ 0.025 $ 0.025 $ 0.025
From net realized gains on investments.......... $ 0.764 $ 0.764 $ 0.764 $ 0.764
FORTIS FIDUCIARY FUND
NET ASSET VALUE PER SHARE:
Beginning of period............................. $ 30.23 $ 30.15 $ 30.15 $ 30.15
End of period................................... $ 35.54 $ 35.35 $ 35.40 $ 35.35
TOTAL RETURN@ 22.71% 22.38% 22.55% 22.38%
DISTRIBUTIONS PER SHARE:
From net realized gains on investments.......... $ 1.21 $ 1.21 $ 1.21 $ 1.21
FORTIS GROWTH FUND
NET ASSET VALUE PER SHARE:
Beginning of period............................. $ 26.25 $ 25.85 $ 25.85 $ 25.85
End of period................................... $ 32.66 $ 32.48 $ 32.49 $ 32.49
TOTAL RETURN@ 26.92% 28.17% 28.21% 28.21%
DISTRIBUTIONS PER SHARE:
From net realized gains on investments.......... $ 0.495 $ 0.495 $ 0.495 $ 0.495
FORTIS ADVANTAGE CAPITAL APPRECIATION PORTFOLIO**
NET ASSET VALUE PER SHARE:
Beginning of period............................. $ 23.05 $ 22.45 $ 22.45 $ 22.45
End of period................................... $ 30.67 $ 30.57 $ 30.58 $ 30.58
TOTAL RETURN@ 33.06% 36.17% 36.21% 36.21%
DISTRIBUTIONS PER SHARE:
From net investment income...................... -- -- -- --
From net realized gains on investments.......... -- -- -- --
<FN>
* Period from November 14, 1994 (initial offering of shares) to August 31,
1995.
** Ten-month period ended August 31, 1995.
@ These are the fund's total returns during the period, including reinvestment
of all dividend and capital gains distributions, without adjustments for
sales charges.
</TABLE>
<PAGE>
HOW TO USE THIS REPORT
For a quick overview of the fund's performance during the past year, refer to
the Highlights box. The letter from the portfolio manager and president provides
a more detailed analysis of the fund and financial markets.
The charts alongside the letter are useful because they provide more information
about your investments. The top holdings chart shows the types of securities in
which the fund invests, and the pie chart shows a breakdown of the fund's assets
by sector. The portfolio changes show the investment decisions your fund manager
has made over the period in response to changing market conditions.
The performance chart graphically compares the funds' total return performance
with a selected investment index. Remember, however, that an index may reflect
the performance of securities the fund may not hold. Also, the index does not
deduct sales charges, investment advisory fees and other fund expenses, whereas
your fund does. Individuals cannot buy an unmanaged index fund without incurring
some charges and expenses. Sales charges pay for your investment
representative's advice.
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.
<TABLE>
<S> <C> <C> <C>
[PHOTO] [PHOTO] [PHOTO]
"I want to spend time enjoying "I still can't believe it. I was "Life has shown me just how much
my family and building my going to put that money in the lies ahead for these
career--not managing my bank. When my registered grandchildren of ours. It's good
investments. With the Asset representative told me I should to know that we'll be able to
Allocation Portfolio, I can do invest it in the Fortis Capital help them along the way because
the things that are important Fund, I just laughed. I'm glad I our investment in the Fortis
today knowing that my money is took his advice." Fiduciary Fund is working to
hard at work for tomorrow." help provide for our
tomorrows...and theirs."
[PHOTO] [PHOTO]
"The thought of putting four "The entrepreneurial spirit
kids through college in 10 years still thrives in America. For
is more than a little people willing to work hard and
overwhelming. But our investment take some risks, opportunities
in the Fortis Growth Fund gives are unlimited. Young, growing
us the opportunity to put our companies are bringing new
money to work today so that all products and new ideas to the
of us can look forward to marketplace every day. The
tomorrow." Capital Appreciation Portfolio
lets us invest in these
companies."
</TABLE>
1
<PAGE>
FORTIS ADVANTAGE
ASSET ALLOCATION PORTFOLIO
TOP HOLDINGS AS OF 8/31/95
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -----------------------------------------------------------------------------
<C> <S> <C>
1. Applied Materials 1.8%
2. 3Com Corp. 1.7%
3. Green Tree Financial 1.7%
4. Microsoft Corp. 1.6%
5. CUC International, Inc. 1.5%
<CAPTION>
Bonds
- -----------------------------------------------------------------------------
<C> <S> <C>
1. U.S. Treasury Bond (8.125%) 2021 4.4%
2. FNMA (7.00%) 2025 2.3%
3. Dean Witter Discover (6.75%) 2000 2.2%
4. GNMA (9.00%) 2023 2.0%
5. U.S. Treasury Bond (7.625%) 2025 1.9%
</TABLE>
PORTFOLIO CHANGES FOR THE TEN-MONTH PERIOD ENDED 8/31/95
STOCK ADDITIONS:
Ceridian Corp.
Computer Associates International, Inc.
Disney (Walt) Co.
STOCK ELIMINATIONS:
ALC Communications Corp.
Brinker International, Inc.
Grupo Televisa, S.A. de C.V. ADR
Lotus Development Corp.
Telefonos de Mexico, S.A. de C.V. ADR
Telephone & Data Systems, Inc.
Toys 'R' Us, Inc.
Viacom, Inc. Non-Voting Class B
DEAR SHAREHOLDER:
We're pleased to present the annual report for the Fortis Advantage Asset
Allocation Portfolio, Capital Fund, Fiduciary Fund, Growth Fund and Advantage
Capital Appreciation Portfolio for the period ended August 31, 1995.
MARKET REVIEW AND OUTLOOK
The stock market moved sharply higher for most of the fiscal year of the funds
discussed in this report. The major factors behind this gain have been
relatively low and declining inflation, stable to lower interest rates and
surprisingly strong corporate profits. Another positive influence has been the
perception of a sincere and potentially successful effort to address our budget
and trade deficits, as well as our income tax structure. Also, a supporting
factor may have been the growing understanding that U.S. corporations have
become the world's lowest cost producers and technological leaders in many, if
not most, industries.
Looking ahead, these forces are still in place, with one exception. As economic
activity slows, it will be difficult to
FORTIS ADVANTAGE
ASSET ALLOCATION PORTFOLIO
ALLOCATION AS OF 8/31/95
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Equity Investments 44.8%
Long-Term Debt Securities 50.0%
Cash
Equivalents/Receivables 5.2%
100.0%
</TABLE>
maintain the recent pace of corporate profit growth. This could impede the
progress of the stock market unless it gets some reassurance in the form of
lower interest rates. With only moderate growth of the economy and very low
rates of inflation, our view is that interest rates should stay at their recent
low levels or go somewhat lower. Nevertheless, it will be incumbent on us as
portfolio managers to make certain that the companies we select can keep growing
earnings at expected rates throughout the period ahead.
FORTIS ADVANTAGE
ASSET ALLOCATION PORTFOLIO
CLASS B, C AND H TOTAL RETURNS
<TABLE>
<CAPTION>
Without With
CDSC CDSC++
- ------------------------------------------------------------
<S> <C> <C>
Class B shares+ +19.00 % +15.40 %
Class C shares+ +18.64 % +17.64 %
Class H shares+ +18.86 % +15.26 %
<FN>
Past performance is not indicative of future performance. Total returns include
investment of all dividend and capital gains distributions. The performance of
the separate classes (A, B, C, and H) will vary based on the differences in
sales loads and distribution fees paid by shareholders investing in the
different classes. Class A has a maximum sales charge of 4.50%, Class B and H
have a CDSC of 4.00% (with a waiver of 10% of the amount invested) if redeemed
within two years of purchase, and Class C has a CDSC of 1.00% if redeemed within
one year of purchase
+ Since November 14, 1994--Date shares were first offered to the public
++ Assumes redemption on August 31, 1995.
</TABLE>
FORTIS ADVANTAGE
ASSET ALLOCATION PORTFOLIO CLASS A
Value of $10,000 invested January 4, 1988
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
FORTIS ASSET
ALLOCATION
LEHMAN BROTHERS PORTFOLIO
<S> <C> <C> <C>
Aggregate Bond
Index# S&P 500##
01/04/88 10,000 10,000 9,550
88 10,470 10,868 9,579
89 11,853 15,109 11,916
90 12,710 14,356 11,595
91 14,569 18,216 14,116
92 16,533 19,663 15,784
93 18,348 22,640 17,572
94 18,070 23,875 18,230
95 20,131 28,994 21,723
FORTIS ADVANTAGE ASSET
ALLOCATION PORTFOLIO
AVERAGE ANNUAL TOTAL
RETURN
SINCE
1 YEAR 5 YEAR JANUARY 4, 1988@
CLASS A* +13.80% +12.34% +10.66%
CLASS A** +19.16% +13.38% +11.33%
<FN>
Annual period ended August 31
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions and the reduction due to the maximum sales
charge of 4.50%.
** These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions without
adjustment for sales charge.
# An unmanaged index of government, corporate, and mortgage-backed securities
with an average maturity of approximately nine years.
## This is an unmanaged index of 500 common stocks.
@ Date shares were first offered to the public.
</TABLE>
2
<PAGE>
PORTFOLIO STRATEGIES
FORTIS ADVANTAGE ASSET ALLOCATION PORTFOLIO invests its assets among stocks,
bonds and cash equivalents in a proportion determined by Fortis fixed income and
equity managers based on their judgment of expected returns from these asset
classes. The fund produced a total return of 18.3 percent (Class A shares
without sales charge) for the ten-month period ended August 31, 1995. During the
year, the asset mix ranged between 40 percent equities and 60 percent bonds.
Currently it is evenly divided between the two categories at 50/50. Early in the
year, the fund benefited from a move into municipal bonds, which have been
eliminated, and a commitment of roughly 20 percent of the fixed income component
in high yield bonds. More recently, we have reduced our exposure to lower-rated
corporate securities as the economy weakened. We also extended the duration of
the fixed income portion of the portfolio from 4.75 years to 5.2 years,
primarily by increasing the holdings of long-term Treasury bonds. The overall
portfolio benefited, as well, from the strength of the stock market in general
and from our growth stock holdings in particular.
FORTIS CAPITAL FUND holdings consist of large-size companies that are growing
their revenues and earnings at well
FORTIS CAPITAL FUND
TOP TEN HOLDINGS AS OF 8/31/95
<TABLE>
<CAPTION>
Percent
of
Net
Stocks Assets
- ------------------------------------------------------------------------------
<C> <S> <C>
1. Silicon Graphics, Inc. 5.0%
2. Oracle Corp. 4.6%
3. Mattel, Inc. 4.3%
4. Motorola, Inc. 4.1%
5. Microsoft Corp. 3.4%
6. Applied Materials, Inc. 3.1%
7. Green Tree Financial Corp. 2.6%
8. General Instrument Corp. 2.5%
9. CUC International, Inc. 2.5%
10. Worldcom, Inc. 2.5%
Note: Excludes holdings in U.S. Government Securities representing 8.5%
of net assets.
</TABLE>
PORTFOLIO CHANGES FOR THE
YEAR ENDED 8/31/95
ADDITIONS:
Ceridian Corp.
Computer Associates International, Inc.
Disney, Walt Co.
Tellabs, Inc.
ELIMINATIONS:
ALC Communications Corp.
Blockbuster Entertainment Corp.
Brinker International, Inc.
Grupo Televisa, S.A. de C.V. ADR
H & R Block, Inc.
Lotus Development Corp.
MCI Communications Corp.
Shaw Industries, Inc.
Telefonos de Mexico, S.A. de C.V. ADR
Telephone & Data Systems, Inc.
Toys 'R' Us, Inc.
WMX Technologies, Inc.
FORTIS CAPITAL FUND PORTFOLIO
COMPOSITION BY INDUSTRY AS OF 8/31/95
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 20.8%
Telecommunications 14.4%
Retail-Miscellaneous 10.0%
Computer-Software 9.6%
U.S. Treasury Securities 8.5%
Cash
Equivalents/Receivables 7.0%
Office Equipment and
Supplies 6.9%
Business Services and
Supplies 5.8%
Health Care Services 4.9%
Finance Companies 4.7%
Toys 4.3%
Electronic-Controls and
Equipment 3.1%
100.0%
</TABLE>
FORTIS CAPITAL FUND
CLASS B, C AND H TOTAL RETURNS
<TABLE>
<CAPTION>
Without With
CDSC CDSC++
- ------------------------------------------------------------
<S> <C> <C>
Class B shares+ +20.74 % +17.14 %
Class C shares+ +20.68 % +19.68 %
Class H shares+ +20.74 % +17.14 %
<FN>
Past performance is not indicative of future performance. Total returns include
investment of all dividend and capital gains distributions. The performance of
the separate classes (A, B, C, and H) will vary based on the differences in
sales loads and distribution fees paid by shareholders investing in the
different classes. Class A has a maximum sales charge of 4.75%, Class B and H
have a CDSC of 4.00% (with a waiver of 10% of the amount invested) if redeemed
within two years of purchase, and Class C has a CDSC of 1.00% if redeemed within
one year of purchase.
+ Since November 14, 1994--Date shares were first offered to the public
++ Assumes redemption on August 31, 1995.
</TABLE>
FORTIS CAPITAL FUND CLASS A
Value of $10,000 invested September 1, 1970
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
FORTIS CAPITAL
S&P 500*** FUND
<S> <C> <C> <C> <C>
09/01/70 10,000 9,525
71 12,550 12,588
72 14,499 14,746
73 14,016 13,202
74 10,096 10,003
75 12,732 11,598
76 15,678 13,462
77 15,398 12,934
78 17,321 16,381
79 19,334 18,105
80 22,839 25,802
81 24,046 29,122
82 24,842 34,486
83 35,742 53,449
84 37,955 51,657
85 45,014 59,641
86 62,521 85,598
87 84,113 108,876
88 69,174 83,916
89 96,164 120,715
90 91,374 113,664
91 115,939 145,994
92 125,148 161,707
93 144,098 174,451
94 151,954 192,866
95 184,535 234,322
FORTIS CAPITAL FUND
AVERAGE ANNUAL TOTAL
RETURN
1 YEAR 5 YEAR 10 YEAR 25 YEARS
CLASS A* +15.72% +14.45% +14.11% +13.45%
CLASS A** +21.49% +15.57% +14.66% +13.67%
<FN>
Annual period ended August 31
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions and the reduction due to the maximum sales
charge of 4.75%.
** These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions without
adjustment for sales charge.
*** An unmanaged index of 500 common stocks.
</TABLE>
3
<PAGE>
above the average rate for U.S. corporations. Early in the markets' upward move,
some of the companies benefited from their relatively large exposure to foreign
markets and the doubly positive impact of weakness in the U.S. dollar. Later,
leadership in the portfolio was assumed by stocks of financially related
companies that were benefiting from declining interest rates. Finally, the most
significant contribution came from the relatively large portion devoted to
technology stocks. For the fiscal year ended August 31, 1995, the fund was up
21.5 percent (Class A shares without sales charge), which compares with the S&P
500 total return of 21.4 percent.
FORTIS FIDUCIARY FUND
TOP TEN HOLDINGS AS OF 8/31/95
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- --------------------------------------------------------------------------------
<C> <S> <C>
1. Silicon Graphics, Inc. 4.4%
2. Motorola, Inc. 4.3%
3. Oracle Corp. 4.2%
4. Mattel, Inc. 4.1%
5. Microsoft Corp. 3.5%
6. Applied Materials, Inc. 2.7%
7. Worldcom, Inc. 2.6%
8. General Instrument Corp. 2.4%
9. Sterling Software, Inc. 2.4%
10. Green Tree Financial Corp. 2.3%
</TABLE>
PORTFOLIO CHANGES FOR THE YEAR ENDED 8/31/95
ADDITIONS:
Ceridian Corp.
Compaq Computer Corp.
Computer Associates International, Inc.
Disney (Walt) Co.
EMC Corp.
Harrah's Entertainment, Inc.
Tellabs, Inc.
ELIMINATIONS:
ALC Communications Corp.
Blockbuster Entertainment Corp.
Brinker International, Inc.
Grupo Televisa, S.A. de C.V. ADR
Lotus Development Corp.
Telephone & Data Systems, Inc.
Toys 'R' Us, Inc.
Value Health, Inc.
FORTIS FIDUCIARY FUND invests in growth companies along the spectrum from
midsize to large companies. It represents a risk level that is between Fortis'
Capital and Growth Funds, but has actually been managed toward the less
aggressive end of that range. In the fiscal year ended August 31, 1995, the
Fiduciary Fund was up 22.7 percent (Class A shares without sales charge). Its
technology exposure has been in the high 30s in terms of a percent of the
portfolio and has been concentrated in the larger companies in that group.
Performance also has benefited from selected holdings in financial services,
health care and telecommunications.
FORTIS FIDUCIARY FUND PORTFOLIO COMPOSITION BY INDUSTRY AS OF 8/31/95
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 16.0%
Cash
Equivalents/Receivables 15.5%
Telecommunications 14.2%
Computer-Software 12.4%
Office Equipment and
Supplies 9.5%
Retail-Miscellaneous 9.2%
Business Services and
Supplies 5.6%
Finance Companies 4.4%
Toys 4.1%
Health Care Services 3.8%
Electronic-Controls and
Equipment 2.7%
Telephone Services 2.6%
100.0%
</TABLE>
FORTIS FIDUCIARY FUND
CLASS B, C AND H TOTAL RETURNS
<TABLE>
<CAPTION>
Without With
CDSC CDSC++
<S> <C> <C>
- ------------------------------------------------------------
Class B shares+ +22.38 % +18.78 %
Class C shares+ +22.55 % +21.55 %
Class H shares+ +22.38 % +18.78 %
<FN>
Past performance is not indicative of future performance. Total returns include
investment of all dividend and capital gains distributions. The performance of
the separate classes (A, B, C, and H) will vary based on the differences in
sales loads and distribution fees paid by shareholders investing in the
different classes. Class A has a maximum sales charge of 4.75%, Class B and H
have a CDSC of 4.00% (with a waiver of 10% of the amount invested) if redeemed
within two years of purchase, and Class C has a CDSC of 1.00% if redeemed within
one year of purchase.
+ Since November 14, 1994--Date shares were first offered to the public
++ Assumes redemption on August 31, 1995.
</TABLE>
FORTIS FIDUCIARY FUND CLASS A
Value of $10,000 invested January 2, 1982
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
FORTIS FIDUCIARY
S&P 500*** FUND
<S> <C> <C> <C> <C>
1/2/82 10,000 9,525
82 10,165 10,328
83 14,625 16,236
84 15,530 16,073
85 18,418 19,081
86 25,582 28,211
87 34,417 35,819
88 28,304 27,359
89 39,348 39,138
90 37,388 36,786
91 47,439 47,291
92 51,208 52,151
93 58,961 57,667
94 62,176 63,529
95 75,507 77,956
FORTIS FIDUCIARY FUND
AVERAGE ANNUAL TOTAL
RETURN
SINCE
1 YEAR 5 YEAR 10 YEAR INCEPTION
Class A* +16.88% +15.08% +14.55% +16.22%
Class A** +22.71% +16.21% +15.11% +16.63%
<FN>
Annual period ended August 31
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions and the reduction due to the maximum sales
charge of 4.75%.
** These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions without
adjustment for sales charge.
*** An unmanaged index of 500 common stocks.
</TABLE>
4
<PAGE>
FORTIS GROWTH FUND
TOP TEN HOLDINGS AS OF 8/31/95
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- --------------------------------------------------------------------------------
<C> <S> <C>
1. 3Com Corp. 5.5%
2. Tellabs, Inc. 5.0%
3. Oracle Corp. 4.6%
4. Cisco Systems, Inc. 4.4%
5. Informix Corp. 3.9%
6. Microsoft Corp. 3.7%
7. DSC Communications Corp. 2.9%
8. Lone Star Steakhouse & Saloon, Inc. 2.6%
9. Micron Technology, Inc. 2.4%
10. Office Depot, Inc. 2.3%
</TABLE>
PORTFOLIO CHANGES FOR THE YEAR ENDED 8/31/95
ADDITIONS:
ADC Telecommunications, Inc.
America Online, Inc.
Applied Materials, Inc.
Biogen, Inc.
Cypress Semiconductor Corp.
EMC Corp.
HBO & Co.
Harrah's Entertainment, Inc.
Lowe's Companies, Inc.
Medaphis Corp.
Micron Technology, Inc.
Mobile Telecommunications Technologies Corp.
Motorola, Inc.
Nokia Corp. ADR
Oxford Health Plans, Inc.
Paging Network, Inc.
Petroleum Geo Services A/S ADS
Qualcomm, Inc.
Sensormatic Electronics Corp.
Staples, Inc.
Tommy Hilfiger Corp.
Vencor, Inc.
Worldcom, Inc.
ELIMINATIONS:
Acclaim Entertainment, Inc.
ALZA Corp. Class A
Brinker International, Inc.
Buffets, Inc.
Compuware Corp.
Cracker Barrel Old Country Store, Inc.
Grupo Televisa, S.A. de C.V. ADR
International Game Technology
Landmark Graphics Corp.
Newbridge Networks Corp.
Price/Costco, Inc.
Quantum Health Resources, Inc.
Sybase, Inc.
Value Health, Inc.
Wellfleet Communications, Inc.
FORTIS GROWTH FUND
CLASS B, C AND H TOTAL RETURNS
<TABLE>
<CAPTION>
Without With
CDSC CDSC++
<S> <C> <C>
- ------------------------------------------------------------
Class B shares+ +28.17 % +24.57 %
Class C shares+ +28.21 % +27.21 %
Class H shares+ +28.21 % +24.61 %
<FN>
Past performance is not indicative of future performance. Total returns include
investment of all dividend and capital gains distributions. The performance of
the separate classes (A, B, C, and H) will vary based on the differences in
sales loads and distribution fees paid by shareholders investing in the
different classes. Class A has a maximum sales charge of 4.75%, Class B and H
have a CDSC of 4.00% (with a waiver of 10% of the amount invested) if redeemed
within two years of purchase, and Class C has a CDSC of 1.00% if redeemed within
one year of purchase.
+ Since November 14, 1994--Date shares were first offered to the public
++ Assumes redemption on August 31, 1995.
</TABLE>
FORTIS GROWTH FUND PORTFOLIO
COMPOSITION BY INDUSTRY AS OF 8/31/95
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Telecommunications 20.5%
Computer-Software 17.8%
Other 11.6%
Cash
Equivalents/Receivables 11.4%
Retail-Miscellaneous 7.3%
Electronic-Controls and
Equipment 6.4%
Electronic-Semiconductor
and Capacitor 5.4%
Health Care Services 4.6%
Telephone Services 4.9%
Restaurants and
Franchising 3.9%
Finance Companies 3.5%
Electronic-Communication
Security 2.7%
100.0%
</TABLE>
FORTIS GROWTH FUND invests primarily in medium-size companies that are growing
their revenues and earnings at significantly above average rates. The 26.9
percent (Class A shares without a sales charge) return for the year ended August
31, 1995, can be mainly attributed to the sizeable holding of technology stocks.
Approximately half of the portfolio is diversified across a wide range of
technology-based businesses. Their common denominator is that they are
benefiting from U.S. corporations looking to improve productivity, as well as
compete more effectively in highly competitive global markets. More recently,
consumer markets have begun to grow rapidly as individuals seek to moderate the
complexity of modern life. We believe these trends are secular and not just
cyclical in nature, a condition that will be evidenced worldwide over time.
FORTIS ADVANTAGE CAPITAL APPRECIATION PORTFOLIO invests in smaller companies
that are growing at very high rates; specifically, at least 25 percent to 30
percent annually in both revenues and earnings. By definition, these companies
are in businesses that are experiencing rapid unit growth. Typically they are
leaders in their industries or industry niches because of the proprietary nature
of their products or services and/or
FORTIS GROWTH FUND CLASS A
Value of $10,000 invested March 31, 1963
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
S&P 500*** FORTIS GROWTH FUND
<S> <C> <C> <C> <C>
Apr-63 10,000 9,525
63 11,040 10,099
64 12,856 10,931
65 14,121 13,119
66 12,907 14,479
67 16,213 22,377
68 17,667 26,486
69 17,607 23,742
70 15,601 18,352
71 19,578 25,413
72 22,619 30,209
73 21,866 24,494
74 15,750 18,759
75 19,863 23,097
76 24,459 26,701
77 24,022 28,161
78 27,021 41,128
79 30,162 48,772
80 35,630 70,320
81 37,512 84,142
82 38,755 95,822
83 55,759 150,914
84 59,211 144,130
85 70,223 161,092
86 97,536 234,978
87 131,220 302,503
88 107,914 220,640
89 150,021 336,834
90 142,548 311,778
91 180,870 441,372
92 195,238 462,216
93 224,800 567,067
94 237,057 545,679
95 287,884 692,573
FORTIS GROWTH FUND
AVERAGE ANNUAL TOTAL
RETURN
SINCE
1 YEAR 5 YEAR 10 YEAR INCEPTION
CLASS A* +20.89% +16.17% +15.14% +13.96%
CLASS A** +26.92% +17.31% +15.70% +14.13%
<FN>
Annual period ended August 31
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions and the reduction due to the maximum sales
charge of 4.75%.
** These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions without
adjustment for sales charge.
*** An unmanaged index of 500 common stocks.
</TABLE>
5
<PAGE>
FORTIS ADVANTAGE
CAPITAL APPRECIATION PORTFOLIO
TOP TEN HOLDINGS AS OF 8/31/95
<TABLE>
<CAPTION>
Percent of
Net Assets
- -------------------------------------------------------------------------------
<C> <S> <C>
1. Xilinx, Inc. 4.5%
2. Input/Output, Inc. 4.0%
3. Lone Star Steakhouse & Saloon, Inc. 3.5%
4. Acxiom Corp. 3.4%
5. Informix Corp. 3.1%
6. Ultratech Stepper, Inc. 2.9%
7. Cisco Systems, Inc. 2.7%
8. Micro Warehouse, Inc. 2.5%
9. LCI International, Inc. 2.3%
10. Applebees International, Inc. 2.1%
</TABLE>
PORTFOLIO CHANGES FOR THE TEN-MONTH PERIOD ENDED 8/31/95
ADDITIONS:
ADC Telecommunications, Inc.
Alliance Semiconductor Corp.
American Oncology Resources, Inc.
Cerner Corp.
Cheesecake Factory, Inc.
FSI International, Inc.
FTP Software, Inc.
Franklin Electronic Publishers, Inc.
Hollywood Entertainment Corp.
Indigo NV
Integrated Device Technology, Inc.
Integrated Silicon Solutions, Inc.
Legato Systems, Inc.
Macromedia, Inc.
Medaphis Corp.
Medic Computer Systems, Inc.
Medpartners, Inc.
MIDCOM Communications, Inc.
Network General Corp.
Omnicare, Inc.
Papa John's International, Inc.
Paradigm Technology, Inc.
Steris Corp.
Summit Medical Systems, Inc.
Sunglass Hut International, Inc.
System Software Associates, Inc.
Trimble Navigation Limited
ELIMINATIONS:
Centocor, Inc.
Cygne Designs, Inc.
DOVatron International, Inc.
ECI Telecom Ltd.
Franklin Quest Co.
Mid Atlantic Medical Services, Inc.
Newbridge Networks Corp.
Powersoft Corp.
Resound Corp.
Rio Hotel & Casino, Inc.
Silver King Communications, Inc.
Starbucks Corp.
Stein Mart, Inc.
Sybase, Inc.
Wall Data
FORTIS ADVANTAGE
CAPITAL APPRECIATION PORTFOLIO
CLASS B, C AND H TOTAL RETURNS
<TABLE>
<CAPTION>
Without With
CDSC CDSC++
- ------------------------------------------------------------
<S> <C> <C>
Class B shares+ +36.17 % +32.57 %
Class C shares+ +36.21 % +35.21 %
Class H shares+ +36.21 % +32.61 %
<FN>
Past performance is not indicative of future performance. Total returns include
investment of all dividend and capital gains distributions. The performance of
the separate classes (A, B, C, and H) will vary based on the differences in
sales loads and distribution fees paid by shareholders investing in the
different classes. Class A has a maximum sales charge of 4.50%, Class B and H
have a CDSC of 4.00% (with a waiver of 10% of the amount invested) if redeemed
within two years of purchase, and Class C has a CDSC of 1.00% if redeemed within
one year of purchase.
+ Since November 14, 1994--Date shares were first offered to the public
++ Assumes redemption on August 31, 1995.
</TABLE>
superior management skills, including an ability to anticipate change in their
markets. The fund appreciated 33.1 percent (Class A shares without a sale
charge) for the ten-month period ended August 31, 1995. Important contributors
to that performance included a wide range of technology stocks, which accounted
for roughly one-third of total holdings. Other contributors included selected
holdings in the areas of retail, health care, telecommunications and energy
services.
IN CLOSING
We'd like to point out that we're now combining the annual reports for the funds
reviewed here (Fortis Stock Funds) as we continue in our efforts to provide
convenient investment products and services. We appreciate your investment with
us, and ask that you talk with your financial professional or us if you have any
questions.
Sincerely,
/s/ DEAN C. KOPPERUD
Dean C. Kopperud
President
/s/ STEPHEN M. POLING
Stephen M. Poling
Vice President
September 25, 1995
FORTIS ADVANTAGE
CAPITAL APPRECIATION PORTFOLIO
COMPOSITION BY INDUSTRY AS OF 8/31/95
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Computer-Software 17.7%
Other 15.5%
Retail-Miscellaneous 12.4%
Electronic-Semiconductor
and Capacitor 10.9%
Restaurants and
Franchising 7.9%
Health Care Services 7.1%
Cash
Equivalents/Receivables 6.0%
Electronics-Controls and
Equipment 5.8%
Business Services and
Supplies 4.7%
Office Equipment and
Supplies 4.1%
Telecommunications 4.0%
Utilities-Telephone 3.9%
100.0%
</TABLE>
FORTIS ADVANTAGE
CAPITAL APPRECIATION PORTFOLIO CLASS A
Value of $10,000 invested January 4, 1988
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
FORTIS CAPITAL
APPRECIATION
S&P 500*** PORTFOLIO
<S> <C> <C> <C>
1/4/88 10,000 9,550
88 10,868 10,400
89 15,109 14,892
90 14,356 14,367
91 18,216 18,683
92 19,663 18,734
93 22,640 25,481
94 23,875 23,792
95 28,994 33,381
FORTIS ADVANTAGE CAPITAL
APPRECIATION PORTFOLIO
AVERAGE ANNUAL TOTAL
RETURN
SINCE
1 YEAR 5 YEAR JANUARY 4, 1988@
CLASS A* +33.99% +17.28% +17.05%
CLASS A** +40.30% +18.37% +17.75%
<FN>
Annual period ended August 31
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions and the reduction due to the maximum sales
charge of 4.50%.
** These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions without
adjustment for sales charge.
*** An unmanaged index of 500 common stocks.
@ Date shares were first offered to the public.
</TABLE>
6
<PAGE>
FORTIS FINANCIAL GROUP'S OTHER PRODUCTS AND SERVICES
MUTUAL FUNDS/PORTFOLIOS
Fortis Advantage Portfolios, Inc.
ASSET ALLOCATION PORTFOLIO
CAPITAL APPRECIATION PORTFOLIO
GOVERNMENT TOTAL RETURN PORTFOLIO
HIGH YIELD PORTFOLIO
Fortis Capital Fund
Fortis Fiduciary Fund, Inc.
Fortis Global Growth Portfolio
Fortis Growth Fund, Inc.
Fortis Money Fund
Fortis Tax-Free Portfolios, Inc.
MINNESOTA PORTFOLIO
NATIONAL PORTFOLIO
NEW YORK PORTFOLIO
Fortis U.S. Government
Securities Fund
FIXED AND VARIABLE ANNUITIES
Fortis Opportunity Fixed
& Variable Annuity
Masters Variable Annuity
FIXED ACCOUNT
MONEY MARKET
U.S. GOVERNMENT SECURITIES
DIVERSIFIED INCOME
GLOBAL BOND
HIGH YIELD
ASSET ALLOCATION
GLOBAL ASSET ALLOCATION
GROWTH & INCOME
GROWTH STOCK
GLOBAL GROWTH
INTERNATIONAL STOCK
AGGRESSIVE GROWTH
Fortune Fixed Annuities
SINGLE PREMIUM ANNUITY
FLEXIBLE PREMIUM ANNUITY
Income Annuities
GUARANTEED FOR LIFE
GUARANTEED FOR A SPECIFIC PERIOD
LIFE AND DISABILITY
WALL STREET SERIES VUL 220 & VUL 500
FIXED ACCOUNT
MONEY MARKET
U.S. GOVERNMENT SECURITIES
DIVERSIFIED INCOME
GLOBAL BOND
HIGH YIELD
ASSET ALLOCATION
GLOBAL ASSET ALLOCATION
GROWTH & INCOME
GROWTH STOCK
GLOBAL GROWTH
INTERNATIONAL STOCK
AGGRESSIVE GROWTH
Adaptable Life
Universal Life
Disability
FOR MORE COMPLETE INFORMATION, INCLUDING CHARGES AND EXPENSES, SEND FOR A
PROSPECTUS. WRITE TO: FORTIS INVESTORS, INC., P.O. BOX 64284, ST. PAUL, MN
55164. READ IT CAREFULLY BEFORE INVESTING OR SENDING MONEY.
7
<PAGE>
FORTIS ADVANTAGE ASSET ALLOCATION PORTFOLIO
Schedule of Investments
August 31, 1995
COMMON STOCKS-44.58%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
- ----------- ----------- -----------
<C> <S> <C> <C>
BROADCASTING-0.56%
34,000 News Corp., Ltd. ADR (The) (e).............................. $ 584,292 $ 773,500
----------- -----------
BUSINESS SERVICES AND SUPPLIES-3.99%
30,400 First Data Corp. (e)........................................ 988,244 1,774,600
16,500 First Financial Management Corp............................. 1,129,338 1,487,062
48,000 MBNA Corp................................................... 1,033,494 1,704,000
27,950 Sensormatic Electronics Corp. (e)........................... 810,153 586,950
----------- -----------
3,961,229 5,552,612
----------- -----------
COMPUTER-HARDWARE-0.72%
23,000 Ceridian Corp. (a).......................................... 1,042,562 1,006,250
----------- -----------
COMPUTER-SOFTWARE-3.81%
18,000 Computer Associates International, Inc...................... 976,006 1,251,000
23,600 Microsoft Corp. (a)......................................... 1,005,434 2,183,000
46,500 Oracle Corp. (a)............................................ 344,821 1,865,812
----------- -----------
2,326,261 5,299,812
----------- -----------
ELECTRONIC-CONTROLS AND EQUIPMENT-1.76%
23,500 Applied Materials, Inc. (a)................................. 918,164 2,444,000
----------- -----------
ELECTRONIC-SEMICONDUCTOR AND CAPACITOR-0.89%
20,200 Intel Corp.................................................. 384,951 1,239,775
----------- -----------
FINANCE COMPANIES-3.40%
10,500 Federal National Mortgage Association....................... 860,212 1,001,437
24,100 Franklin Resources, Inc..................................... 283,777 1,325,500
41,192 Green Tree Financial Corp................................... 1,036,226 2,399,434
----------- -----------
2,180,215 4,726,371
----------- -----------
HEALTH CARE SERVICES-2.68%
25,000 Columbia/HCA Healthcare Corp................................ 929,927 1,175,000
12,500 PacifiCare Health Systems, Inc. Class B (a)(e).............. 594,808 715,625
35,500 U.S. HealthCare, Inc........................................ 1,074,317 1,136,000
16,600 United Healthcare Corp...................................... 504,429 701,350
----------- -----------
3,103,481 3,727,975
----------- -----------
HOTEL AND MOTEL-1.22%
49,500 Mirage Resorts, Inc. (a).................................... 1,115,820 1,701,563
----------- -----------
LEISURE TIME-AMUSEMENTS-0.67%
16,500 Disney (Walt) Co............................................ 910,134 926,063
----------- -----------
MEDICAL SUPPLIES-0.81%
12,000 Medtronic, Inc. (and rights)................................ 293,844 1,132,500
----------- -----------
<CAPTION>
Market
Shares Cost (b) Value (c)
- ----------- ----------- -----------
<C> <S> <C> <C>
MISCELLANEOUS-1.53%
62,250 CUC International, Inc. (a)................................. $ 1,019,365 $ 2,124,281
----------- -----------
OFFICE EQUIPMENT AND SUPPLIES-3.85%
46,000 Silicon Graphics, Inc. (a).................................. 591,093 1,943,500
40,000 Sterling Software, Inc. (a)................................. 772,400 1,785,000
26,100 Tandy Corp.................................................. 1,182,405 1,621,463
----------- -----------
2,545,898 5,349,963
----------- -----------
PUBLISHING-0.69%
15,700 Scholastic Corp. (a)(e)..................................... 810,604 961,625
----------- -----------
RETAIL-DEPARTMENT STORES-1.61%
24,500 Kohl's Corp. (a)............................................ 957,074 1,151,500
44,000 Wal-Mart Stores, Inc........................................ 991,910 1,083,500
----------- -----------
1,948,984 2,235,000
----------- -----------
RETAIL-MISCELLANEOUS-4.08%
40,800 AutoZone, Inc. (a)(e)....................................... 783,087 1,096,500
19,200 Home Depot, Inc............................................. 222,400 765,600
39,000 Lowe's Companies, Inc....................................... 791,743 1,296,750
50,700 Office Depot, Inc. (a)...................................... 477,429 1,578,038
27,400 Pep Boys Manny Moe & Jack................................... 608,270 753,500
5,300 Talbots (The), Inc.......................................... 106,104 182,850
----------- -----------
2,989,033 5,673,238
----------- -----------
TELECOMMUNICATIONS-8.44%
62,000 3Com Corp. (a)(e)........................................... 488,696 2,418,000
27,900 Cisco Systems, Inc. (a)..................................... 698,222 1,830,938
94,400 Ericsson (L.M.) Telephone Co. Class B ADR................... 1,146,993 2,017,800
46,400 General Instrument Corp. (a)(e)............................. 1,278,464 1,693,600
24,000 Motorola, Inc............................................... 578,050 1,794,000
28,600 Nokia Corp. ADR............................................. 584,679 1,984,125
----------- -----------
4,775,104 11,738,463
----------- -----------
TELEPHONE SERVICES-1.46%
60,508 Worldcom, Inc. (a)(e)....................................... 657,407 2,038,363
----------- -----------
TOYS-1.31%
62,791 Mattel, Inc................................................. 694,622 1,820,939
----------- -----------
UTILITIES-TELEPHONE-1.10%
47,000 Air Touch Communications, Inc. (a).......................... 1,186,660 1,527,500
----------- -----------
TOTAL COMMON STOCKS......................................... $33,448,630 $61,999,793
----------- -----------
----------- -----------
</TABLE>
PREFERRED STOCKS-0.25%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Value
Shares Cost (b) (c)
- ----------- -------- --------
<C> <S> <C> <C>
BROADCASTING-0.25%
17,000 News Corp., Ltd. (The) Preferred ADR (e).................... $252,414 $344,250
-------- --------
</TABLE>
8
<PAGE>
ASSET BACKED SECURITIES-5.45%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
- ----------- ----------- ---------- ----------
<C> <S> <C> <C> <C>
MANUFACTURED HOMES-2.54%
$1,000,000 Green Tree Financial Corp., 8.35% Ser 1994-7 Class A4
3-15-2020................................................. Aaa* $ 998,750 $1,058,694
2,500,000 Oakwood Mtg Investors, Inc., 7.10% Ser 1995-A Cl A3
9-15-2020................................................. AAA 2,497,656 2,475,002
---------- ----------
3,496,406 3,533,696
---------- ----------
MISCELLANEOUS-2.17%
1,500,000 Green Tree Financial Corp., 7.65% Ser 1994-1 Class A5 Sr Sub
Pass Thru Certificate 4-15-2019........................... Aa2* 1,494,141 1,526,610
1,485,179 Vanderbilt Mtg & Finance, Inc., 7.00% Ser 1994-A Cl A1 Mfg
Housing Contract 7-10-2019................................ AA 1,484,250 1,498,039
---------- ----------
2,978,391 3,024,649
---------- ----------
MULTI-FAMILY LOANS-0.74%
1,000,000 DLJ Mtg Acceptance Corp., 8.80% Ser 1993-12 Cl B1
Multifamily Mtg Pass Thru Certificate 9-18-2003........... NR* 982,500 1,022,393
---------- ----------
TOTAL ASSET BACKED SECURITIES............................... $7,457,297 $7,580,738
---------- ----------
---------- ----------
</TABLE>
CORPORATE BONDS-INVESTMENT GRADE-11.00%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
- ----------- ----------- ----------- -----------
<C> <S> <C> <C> <C>
BANKS-3.24%
$2,000,000 Advanta National Bank, Inc., 6.71% 9-30-1999................ BBB $2,000,000 $2,000,600
2,500,000 Capital One MTN, 6.83% 8-16-1999............................ BBB- 2,500,000 2,508,822
----------- -----------
4,500,000 4,509,422
----------- -----------
BROKERAGE AND INVESTMENT-3.97%
2,500,000 Bear Stearns & Co., 6.75% 8-15-2000 (e)..................... A 2,484,136 2,499,595
3,000,000 Dean Witter Discover, 6.75% 8-15-2000....................... A 2,988,690 3,021,990
----------- -----------
5,472,826 5,521,585
----------- -----------
CHEMICALS-0.54%
750,000 Methanex Corp., 7.40% Note 8-15-2002........................ BBB+ 746,403 747,187
----------- -----------
FOREIGN-GOVERNMENT-1.49%
2,000,000 Hydro-Quebec, 8.00% Deb 2-1-2013............................ A+ 1,953,780 2,072,638
----------- -----------
FOREST PRODUCTS-0.47%
600,000 Georgia-Pacific Corp., 9.625% Deb 3-15-2022................. BBB- 616,932 654,049
----------- -----------
MEDIA-0.89%
600,000 News America Holdings, Inc., 10.125% Sr Note 10-15-2012..... BBB- 600,000 685,018
500,000 News America Holdings, Inc., 8.875% Sr Note 4-26-2023....... BBB- 495,800 551,433
----------- -----------
1,095,800 1,236,451
----------- -----------
MISCELLANEOUS-0.40%
500,000 New York (City of), 10.00% General Obligation Taxable Bond
Fiscal 1991 Ser D 8-1-2005................................ BBB+ 471,628 561,099
----------- -----------
TOTAL CORPORATE BONDS - INVESTMENT GRADE.................... 14,857,369 15,302,431
----------- -----------
TOTAL ASSET BACKED & INVESTMENT GRADE CORP. DEBT
SECURITIES................................................ $22,314,666 $22,883,169
----------- -----------
----------- -----------
</TABLE>
CORPORATE BONDS-NON-INVESTMENT GRADE-9.86%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
- ----------- ----------- ----------- -----------
<C> <S> <C> <C> <C>
BROADCASTING-0.36%
$ 500,000 Sinclair Broadcasting, 10.00% Sr Sub Note 9-30-2005 (e)..... B+ $ 500,000 $ 502,500
----------- -----------
</TABLE>
9
<PAGE>
FORTIS ADVANTAGE ASSET ALLOCATION PORTFOLIO
Schedule of Investments
August 31, 1995
CORPORATE BONDS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
- ----------- ----------- ----------- -----------
<C> <S> <C> <C> <C>
BUILDING MATERIALS-0.96%
$ 500,000 Associated Materials, Inc., 11.50% Sr Sub Note 8-15-2003.... B- $ 462,500 $ 430,000
500,000 Essex Group, 10.00% Sr Note 5-1-2003........................ B+ 503,125 486,875
500,000 Wickes Lumber Co., 11.625% Sr Sub Note 12-15-2003 (e)....... B- 502,500 421,250
----------- -----------
1,468,125 1,338,125
----------- -----------
CHEMICALS-1.17%
500,000 Arcadian Partners L.P., 10.75% Sr Note Ser B 5-1-2005....... BB- 493,304 522,500
900,000 Indspec Chemical Corp., 11.50% Sr Sub Disc Note Ser B
12-1-2003 (Zero coupon until 12-1-1998)................... B- 563,753 585,000
500,000 NL Industries, Inc., 11.75% Sr Secured Note 10-15-2003...... B 475,000 525,000
----------- -----------
1,532,057 1,632,500
----------- -----------
CONSUMER GOODS-0.32%
500,000 Plastic Specialty & Technologies, Inc., 11.25% Sr Secured
Note 12-1-2003............................................ B- 443,125 451,250
----------- -----------
CONTAINERS AND PACKAGING-0.73%
500,000 Domtar, Inc., 11.25% Sinking Fund Deb 9-15-2017............. BB- 485,000 530,000
500,000 Mail-Well Corp., 10.50% Sr Sub Note 2-15-2004............... B- 443,750 482,500
----------- -----------
928,750 1,012,500
----------- -----------
ENERGY-0.33%
432,916 Midland Cogeneration Venture, L.P., 10.33% MidlandFunding Sr
Secured Lease Obligation Bond Ser C 7-23-2002............. BB- 429,669 447,376
----------- -----------
FOOD-GROCERY, MISCELLANEOUS-0.70%
500,000 Envirodyne Industries, 12.00% First Priority SeniorSecured
Note 6-15-2000 (f)........................................ NR 500,000 495,000
500,000 Specialty Foods Corp., 10.25% Sr Note Ser B 8-15-2001....... B 482,500 483,750
----------- -----------
982,500 978,750
----------- -----------
LEISURE TIME-AMUSEMENTS-0.65%
500,000 Bally's Park Place, 9.25% First Mtg Bond 3-15-2004.......... BB 472,514 470,000
500,000 G B Property Funding, 10.875% First Mtg Bond 1-15-2004...... B+ 435,000 435,000
----------- -----------
907,514 905,000
----------- -----------
MACHINERY-0.63%
500,000 Spreckels Industries, Inc., 11.50% Sr Secured Note
9-1-2000.................................................. B 485,625 495,000
500,000 Terex Corp., 13.75% Sr Secured Note 5-15-2002 (and rights)
(e)(f).................................................... B 490,000 387,500
----------- -----------
975,625 882,500
----------- -----------
MEDIA-0.37%
556,513 Falcon Holding Group, L.P. 11.00% Sr Sub Note Ser B
9-15-2003 (Interest is Payable-in-Kind) (e)............... NR 451,307 508,143
----------- -----------
RESTAURANTS AND FRANCHISING-0.63%
500,000 Carrols Corp., 11.50% Sr Note 8-15-2003..................... B+ 478,750 490,000
500,000 Flagstar Corp., 11.25% Sr Sub Deb 11-1-2004................. CCC+ 521,250 380,000
----------- -----------
1,000,000 870,000
----------- -----------
RETAIL-MISCELLANEOUS-1.43%
600,000 Farm Fresh, Inc., 12.25% Sr Note 10-1-2000 (e).............. B- 600,000 526,500
500,000 Grand Union Co., 12.00% Sr Note 9-1-2004 (e)................ B- 473,750 474,375
500,000 Pantry (The), Inc., 12.00% Sr Note Ser B 11-15-2000......... B+ 490,000 492,500
500,000 Stater Brothers, Inc., 11.00% Sr Note 3-1-2001.............. B+ 475,000 492,500
----------- -----------
2,038,750 1,985,875
----------- -----------
TECHNOLOGY-0.66%
500,000 Computervision Corp., 10.875% Sr Note 8-15-1997............. B 466,875 513,750
500,000 U.S. Banknote Corp., 10.375% Sr Note 6-1-2002............... B+ 452,500 405,000
----------- -----------
919,375 918,750
----------- -----------
TELECOMMUNICATIONS-0.18%
250,000 Paging Network, 10.125% Sr Sub Note 8-1-2007................ B 252,812 253,125
----------- -----------
TEXTILE MANUFACTURING-0.12%
200,000 U.S. Leather, Inc., 10.25% Sr Note 7-31-2003................ B+ 196,813 164,000
----------- -----------
</TABLE>
10
<PAGE>
CORPORATE BONDS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
- ----------- ----------- ----------- -----------
<C> <S> <C> <C> <C>
TOBACCO-0.26%
$ 500,000 Liggett Group, Inc., 11.50% Ser B Secured Note 2-1-1999..... NR* $ 361,250 $ 360,000
----------- -----------
TRANSPORTATION-0.36%
500,000 Petro PSC Properties, L.P., 12.50% Sr Note 6-1-2002......... B 479,215 502,500
----------- -----------
TOTAL CORPORATE BONDS - NON-INVESTMENT GRADE................ 13,866,887 13,712,894
----------- -----------
TOTAL ASSET BACKED & CORPORATE DEBT SECURITIES.............. $36,181,553 $36,596,063
----------- -----------
----------- -----------
</TABLE>
U.S. GOVERNMENT SECURITIES-23.69%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Cost (b) Value (c)
- ---------- ------------ ------------
<C> <S> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION-10.81%
MORTGAGE BACKED SECURITIES:
$4,080,000 7.00% 2025................................... $ 4,014,656 $ 4,008,600
2,039,998 8.00% 2025................................... 2,070,917 2,081,435
290,922 9.00% 2016-2021.............................. 287,368 303,105
------------ ------------
6,372,941 6,393,140
------------ ------------
NOTES:
2,000,000 6.85% 2000................................... 2,000,000 2,017,356
2,000,000 7.40% 2004 (e)............................... 2,111,050 2,115,142
2,500,000 7.84% 1998................................... 2,516,775 2,524,847
------------ ------------
6,627,825 6,657,345
------------ ------------
REMIC-PAC'S:
2,000,000 7.00% 2020................................... 1,937,969 1,989,238
------------ ------------
TOTAL FEDERAL NATIONAL MORTGAGE
ASSOCIATION................................ 14,938,735 15,039,723
------------ ------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION-3.43%
MORTGAGE BACKED SECURITIES:
1,906,695 7.50% 2022................................... 1,910,270 1,916,823
2,642,724 9.00% 2023................................... 2,728,612 2,771,556
<CAPTION>
Principal Market
Amount Cost (b) Value (c)
- ---------- ------------ ------------
<C> <S> <C> <C>
$ 75,930 9.50% 2019................................... $ 75,313 $ 80,510
------------ ------------
4,714,195 4,768,889
------------ ------------
OTHER DIRECT FEDERAL OBLIGATIONS-3.15%
FEDERAL HOME LOAN BANK:
1,750,000 6.125% 1996.................................. 1,747,813 1,753,405
2,500,000 7.31% 2004................................... 2,508,985 2,628,523
------------ ------------
4,256,798 4,381,928
------------ ------------
U.S. TREASURY SECURITIES-6.30%
BONDS:
2,400,000 7.625% 2025.................................. 2,658,000 2,676,746
5,250,000 8.125% 2021 (e).............................. 5,880,469 6,088,352
------------ ------------
8,538,469 8,765,098
------------ ------------
TOTAL U.S. GOVERNMENT SECURITIES............. 32,448,197 32,955,638
------------ ------------
TOTAL LONG-TERM DEBT SECURITIES.............. 68,629,750 69,551,701
------------ ------------
TOTAL LONG-TERM INVESTMENTS.................. $102,330,794 $131,895,744
------------ ------------
------------ ------------
</TABLE>
SHORT-TERM INVESTMENTS-4.80%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
- ---------- ------------
<C> <S> <C>
BANKS-0.48%
$ 672,000 First Trust Money Market Variable Rate Time
Deposit, Current rate -- 5.66%............. $ 672,000
------------
DIVERSIFIED FINANCE-2.02%
2,807,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.79%...................... 2,807,000
------------
U.S. OTHER DIRECT FEDERAL OBLIGATIONS-2.30%
3,200,000 Federal Home Loan Bank, 5.74%, 9-18-1995..... 3,190,976
------------
TOTAL SHORT-TERM INVESTMENTS................. 6,669,976
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$109,000,770) (B).......................... $138,565,720
------------
------------
</TABLE>
(a) Presently not paying dividend income.
(b) At August 31, 1995, the cost of securities for federal income tax purposes
was $109,000,770 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $30,575,015
Unrealized depreciation..................................... (1,010,065)
- -------------------------------------------------------------------------
Net unrealized appreciation................................. $29,564,950
- -------------------------------------------------------------------------
</TABLE>
(c) See Note A of accompanying Notes to Financial Statements regarding
valuation of securities
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets. Market value of investments in foreign
securities represents 5.17% of net assets as of August 31, 1995.
(e) Security is fully or partially on loan at August 31, 1995. See Note A of
accompanying Notes to Financial Statements.
(f) Securities sold within terms of a private placement memorandum, exempt from
registration under Section 144A of the Securities Act of 1933, as amended,
and may be sold only to dealers in that program or to other "accredited
investors". These investments have been identified by portfolio management
as illiquid securities. The value of these securities at August 31, 1995 is
$882,500 which represents .63% of net assets.
* Moody's Rating
11
<PAGE>
FORTIS CAPITAL FUND
Schedule of Investments
August 31, 1995
COMMON STOCKS-84.15%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
- -------- ------------ ------------
<C> <S> <C> <C>
BROADCASTING-1.09%
142,100 News Corp., Ltd. ADR (The) (e).............................. $ 2,524,632 $ 3,232,775
------------ ------------
BUSINESS SERVICES AND SUPPLIES-5.83%
97,900 First Data Corp. (e)........................................ 3,275,890 5,714,912
35,000 First Financial Management Corp............................. 2,262,188 3,154,375
168,000 MBNA Corp................................................... 3,617,255 5,964,000
119,300 Sensormatic Electronics Corp. (e)........................... 3,492,879 2,505,300
------------ ------------
12,648,212 17,338,587
------------ ------------
COMPUTER-HARDWARE-0.74%
50,000 Ceridian Corp. (a).......................................... 2,267,085 2,187,500
------------ ------------
COMPUTER-SOFTWARE-9.57%
68,000 Computer Associates International, Inc...................... 3,960,381 4,726,000
109,600 Microsoft Corp. (a)......................................... 1,300,789 10,138,000
338,000 Oracle Corp. (a)............................................ 2,486,952 13,562,250
------------ ------------
7,748,122 28,426,250
------------ ------------
ELECTRONIC-CONTROLS AND EQUIPMENT-3.07%
87,700 Applied Materials, Inc. (a)................................. 3,590,291 9,120,800
------------ ------------
ELECTRONIC-SEMICONDUCTOR AND CAPACITOR-1.77%
85,600 Intel Corp.................................................. 1,720,099 5,253,700
------------ ------------
FINANCE COMPANIES-4.73%
66,500 Federal National Mortgage Association....................... 2,327,500 6,342,437
132,288 Green Tree Financial Corp................................... 3,472,611 7,705,776
------------ ------------
5,800,111 14,048,213
------------ ------------
HEALTH CARE SERVICES-4.92%
87,400 Columbia/HCA Healthcare
Corp. (e)................................................. 3,383,784 4,107,800
45,700 PacifiCare Health Systems, Inc. Class B (a)(e).............. 2,200,047 2,616,325
169,000 U.S. HealthCare, Inc........................................ 5,770,188 5,408,000
58,600 United Healthcare Corp...................................... 2,063,033 2,475,850
------------ ------------
13,417,052 14,607,975
------------ ------------
HOTEL AND MOTEL-1.34%
115,500 Mirage Resorts, Inc. (a).................................... 2,603,580 3,970,313
------------ ------------
LEISURE TIME-AMUSEMENTS-1.30%
69,000 Disney (Walt) Co............................................ 3,808,155 3,872,625
------------ ------------
MEDICAL SUPPLIES-2.32%
73,200 Medtronic, Inc. (and rights)................................ 1,699,325 6,908,250
------------ ------------
<CAPTION>
Market
Shares Cost (b) Value (c)
- -------- ------------ ------------
<C> <S> <C> <C>
MISCELLANEOUS-2.54%
221,100 CUC International, Inc. (a)................................. $ 3,676,989 $ 7,545,038
------------ ------------
OFFICE EQUIPMENT AND SUPPLIES-6.94%
355,000 Silicon Graphics, Inc. (a)(e)............................... 4,616,121 14,998,750
90,400 Tandy Corp.................................................. 3,906,654 5,616,100
------------ ------------
8,522,775 20,614,850
------------ ------------
PUBLISHING-1.03%
49,800 Scholastic Corp. (a)(e)..................................... 2,539,082 3,050,250
------------ ------------
RETAIL-DEPARTMENT STORES-2.66%
95,200 Kohl's Corp. (a)............................................ 3,718,455 4,474,400
139,600 Wal-Mart Stores, Inc........................................ 978,984 3,437,650
------------ ------------
4,697,439 7,912,050
------------ ------------
RETAIL-MISCELLANEOUS-10.03%
128,200 AutoZone, Inc. (a)(e)....................................... 2,473,408 3,445,375
167,166 Home Depot, Inc............................................. 2,307,584 6,665,744
86,000 Lowe's Companies, Inc. (e).................................. 1,719,275 2,859,500
236,025 Office Depot, Inc. (a)(e)................................... 1,806,806 7,346,278
141,000 Pep Boys Manny Moe & Jack................................... 2,606,629 3,877,500
148,000 Price/Costco, Inc. (a)...................................... 2,840,050 2,497,500
90,700 Talbots (The), Inc.......................................... 2,322,008 3,129,150
------------ ------------
16,075,760 29,821,047
------------ ------------
TELECOMMUNICATIONS-14.43%
96,300 Cisco Systems, Inc. (a)..................................... 2,387,013 6,319,688
284,000 Ericsson (L.M.) Telephone Co. Class B ADR (e)............... 3,485,342 6,070,500
207,400 General Instrument Corp. (a)(e)............................. 5,296,662 7,570,100
164,000 Motorola, Inc............................................... 3,982,540 12,259,000
77,400 Nokia Corp. ADR (e)......................................... 1,582,311 5,369,625
114,000 Tellabs, Inc. (a)........................................... 3,071,808 5,329,500
------------ ------------
19,805,676 42,918,413
------------ ------------
TELEPHONE SERVICES-2.50%
220,450 Worldcom, Inc. (a)(e)....................................... 2,346,825 7,426,409
------------ ------------
TOYS-4.32%
442,675 Mattel, Inc................................................. 3,496,886 12,837,575
------------ ------------
UTILITIES-TELEPHONE-3.02%
128,000 Air Touch Communications, Inc. (a).......................... 3,299,050 4,160,000
115,000 Vodafone Group plc ADR (e).................................. 3,649,723 4,815,625
------------ ------------
6,948,773 8,975,625
------------ ------------
TOTAL COMMON STOCKS......................................... $125,936,869 $250,068,245
------------ ------------
------------ ------------
</TABLE>
PREFERRED STOCKS-0.44%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
- ------- -------- ----------
<C> <S> <C> <C>
BROADCASTING-0.44%
64,800 News Corp., Ltd. (The) Preferred ADR (e).................... $989,913 $1,312,200
-------- ----------
</TABLE>
12
<PAGE>
U.S. GOVERNMENT SECURITIES-8.48%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Cost (b) Value (c)
- ------------ ------------ ------------
<C> <S> <C> <C>
U.S. TREASURY SECURITIES-8.48%
NOTES:
$25,000,000 9.50% 1995 (e).............................................. $ 25,507,812 $ 25,195,300
------------ ------------
TOTAL LONG-TERM INVESTMENTS................................. $152,434,594 $276,575,745
------------ ------------
------------ ------------
</TABLE>
SHORT-TERM INVESTMENTS-6.72%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
- ------------ ------------
<C> <S> <C>
BANKS-3.85%
$11,430,802 First Trust Money Market Variable Rate Time Deposit, Current
rate -- 5.66%............................................. $ 11,430,802
------------
DIVERSIFIED FINANCE-0.52%
1,551,000 Associates Corp. Master Variable Rate Note, Current
rate -- 5.79%............................................. 1,551,000
------------
U.S. OTHER DIRECT FEDERAL OBLIGATIONS-2.35%
7,000,000 Federal Home Loan Bank, 5.72%, 9-6-1995..................... 6,993,432
------------
TOTAL SHORT-TERM INVESTMENTS................................ 19,975,234
------------
TOTAL INVESTMENTS IN SECURITIES (COST: $172,409,828) (B).... $296,550,979
------------
------------
</TABLE>
(a) Presently not paying dividend income.
(b) At August 31, 1995, the cost of securities for federal income tax purposes
was $172,409,828 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $126,528,996
Unrealized depreciation..................................... (2,387,845)
- --------------------------------------------------------------------------
Net unrealized appreciation................................. $124,141,151
- --------------------------------------------------------------------------
</TABLE>
(c) See Note A of accompanying Notes to Financial Statements regarding
valuation of securities
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets. Market value of investments in foreign
securities represents 7.00% of net assets as of August 31, 1995.
(e) Security is fully or partially on loan at August 31, 1995. See Note A of
accompanying Notes to Financial Statements.
13
<PAGE>
FORTIS FIDUCIARY FUND, INC.
Schedule of Investments
August 31, 1995
COMMON STOCKS-83.94%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
- ------- ----------- -----------
<C> <S> <C> <C>
BROADCASTING-1.04%
30,000 News Corp., Ltd. ADR (The) (d).............................. $ 568,584 $ 682,500
----------- -----------
BUSINESS SERVICES AND SUPPLIES-5.62%
19,200 First Data Corp. (d)........................................ 642,885 1,120,800
7,700 First Financial Management Corp............................. 500,089 693,963
37,000 MBNA Corp................................................... 805,564 1,313,500
26,300 Sensormatic Electronics Corp................................ 772,579 552,300
----------- -----------
2,721,117 3,680,563
----------- -----------
COMPUTER-HARDWARE-0.67%
10,000 Ceridian Corp. (a).......................................... 453,552 437,500
----------- -----------
COMPUTER-SOFTWARE-12.44%
31,800 BMC Software, Inc. (a)...................................... 877,274 1,355,475
14,300 Computer Associates International, Inc...................... 838,898 993,850
35,000 EMC Corp. (a)............................................... 702,100 717,500
24,900 Microsoft Corp. (a)......................................... 315,565 2,303,250
69,000 Oracle Corp. (a)............................................ 369,400 2,768,625
----------- -----------
3,103,237 8,138,700
----------- -----------
ELECTRONIC-CONTROLS AND EQUIPMENT-2.65%
16,700 Applied Materials, Inc. (a)................................. 665,585 1,736,800
----------- -----------
ELECTRONIC-SEMICONDUCTOR AND CAPACITOR-1.59%
17,000 Intel Corp.................................................. 169,647 1,043,375
----------- -----------
FINANCE COMPANIES-4.43%
14,800 Federal National Mortgage Association....................... 518,000 1,411,550
25,472 Green Tree Financial Corp................................... 669,081 1,483,744
----------- -----------
1,187,081 2,895,294
----------- -----------
HEALTH CARE SERVICES-3.76%
18,200 Columbia/HCA Healthcare Corp. (d)........................... 693,906 855,400
9,300 PacifiCare Health Systems, Inc. Class B (a)(d).............. 437,120 532,425
18,000 U.S. HealthCare, Inc........................................ 662,892 576,000
11,800 United Healthcare Corp...................................... 366,076 498,550
----------- -----------
2,159,994 2,462,375
----------- -----------
HOTEL AND MOTEL-2.18%
14,000 Harrah's Entertainment, Inc. (a)............................ 490,295 446,250
24,250 Mirage Resorts, Inc. (a).................................... 546,510 833,594
7,000 Promus Hotel Corp. (a)...................................... 204,105 144,375
----------- -----------
1,240,910 1,424,219
----------- -----------
LEISURE TIME-AMUSEMENTS-1.24%
14,500 Disney (Walt) Co............................................ 800,040 813,812
----------- -----------
MEDICAL SUPPLIES-2.02%
14,000 Medtronic, Inc. (and rights)................................ 334,290 1,321,250
----------- -----------
<CAPTION>
Market
Shares Cost (b) Value (c)
- ------- ----------- -----------
<C> <S> <C> <C>
MISCELLANEOUS-2.25%
43,050 CUC International, Inc. (a)................................. $ 715,911 $ 1,469,081
----------- -----------
OFFICE EQUIPMENT AND SUPPLIES-9.47%
14,000 Compaq Computer Corp. (a)................................... 540,120 668,500
68,000 Silicon Graphics, Inc. (a)(d)............................... 883,616 2,873,000
35,600 Sterling Software, Inc. (a)................................. 650,231 1,588,650
17,100 Tandy Corp.................................................. 745,927 1,062,338
----------- -----------
2,819,894 6,192,488
----------- -----------
PUBLISHING-0.90%
9,600 Scholastic Corp. (a)........................................ 489,198 588,000
----------- -----------
RETAIL-DEPARTMENT STORES-2.35%
18,500 Kohl's Corp. (a)............................................ 722,598 869,500
27,200 Wal-Mart Stores, Inc........................................ 206,975 669,800
----------- -----------
929,573 1,539,300
----------- -----------
RETAIL-MISCELLANEOUS-9.19%
25,000 AutoZone, Inc. (a)(d)....................................... 482,350 671,875
30,833 Home Depot, Inc............................................. 436,457 1,229,466
18,000 Lowe's Companies, Inc. (d).................................. 360,214 598,500
46,350 Office Depot, Inc. (a)(d)................................... 351,521 1,442,644
31,900 Pep Boys Manny Moe & Jack................................... 589,736 877,250
28,000 Price/Costco, Inc. (a)...................................... 560,434 472,500
20,800 Talbots (The), Inc.......................................... 533,296 717,600
----------- -----------
3,314,008 6,009,835
----------- -----------
TELECOMMUNICATIONS-14.19%
21,600 Cisco Systems, Inc. (a)..................................... 535,865 1,417,500
64,000 Ericsson (L.M.) Telephone Co. Class B ADR (d)............... 765,326 1,368,000
43,800 General Instrument Corp. (a)(d)............................. 1,122,803 1,598,700
38,000 Motorola, Inc............................................... 921,452 2,840,500
16,200 Nokia Corp. ADR............................................. 331,126 1,123,875
20,000 Tellabs, Inc. (a)........................................... 536,591 935,000
----------- -----------
4,213,163 9,283,575
----------- -----------
TELEPHONE SERVICES-2.58%
50,054 Worldcom, Inc. (a)(d)....................................... 526,188 1,686,194
----------- -----------
TOYS-4.05%
91,406 Mattel, Inc................................................. 734,778 2,650,774
----------- -----------
UTILITIES-TELEPHONE-1.32%
26,500 Air Touch Communications, Inc. (a).......................... 678,290 861,250
----------- -----------
TOTAL COMMON STOCKS......................................... $27,825,040 $54,916,885
----------- -----------
----------- -----------
</TABLE>
PREFERRED STOCKS-0.46%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
- ------- ----------- -----------
<C> <S> <C> <C>
BROADCASTING-0.46%
15,000 News Corp., Ltd. (The) Preferred ADR........................ $ 246,006 $ 303,750
----------- -----------
TOTAL LONG-TERM INVESTMENTS................................. $28,071,046 $55,220,635
----------- -----------
----------- -----------
</TABLE>
14
<PAGE>
SHORT-TERM INVESTMENTS-15.63%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
- ---------- -----------
<C> <S> <C>
BANKS-4.47%
$2,925,941 First Trust Money Market Variable Rate Time Deposit, Current
rate -- 5.66%............................................. $2,925,941
-----------
DIVERSIFIED FINANCE-2.16%
1,410,000 Associates Corp. Master Variable Rate Note, Current
rate -- 5.79%............................................. 1,410,000
-----------
U.S. OTHER DIRECT FEDERAL OBLIGATIONS-9.00%
5,900,000 Federal Home Loan Bank, 5.74%, 9-12-1995.................... 5,888,888
-----------
TOTAL SHORT-TERM INVESTMENTS................................ 10,224,829
-----------
TOTAL INVESTMENTS IN SECURITIES (COST: $38,295,875) (B)..... $65,445,464
-----------
-----------
</TABLE>
(a) Presently not paying dividend income.
(b) At August 31, 1995, the cost of securities for federal income tax purposes
was $38,295,875 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $27,690,232
Unrealized depreciation..................................... (540,643)
- -------------------------------------------------------------------------
Net unrealized appreciation................................. $27,149,589
- -------------------------------------------------------------------------
</TABLE>
(c) See Note A of accompanying Notes to Financial Statements regarding
valuation of securities
(d) Security is fully or partially on loan at August 31, 1995. See Note A of
accompanying Notes to Financial Statements.
(e) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets. Market value of investments in foreign
securities represents 5.32% of net assets as of August 31, 1995.
15
<PAGE>
FORTIS GROWTH FUND, INC.
Schedule of Investments
August 31, 1995
COMMON STOCKS-88.49%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
- -------- ------------ ------------
<C> <S> <C> <C>
APPAREL-0.24%
49,000 Tommy Hilfiger Corp. (a).................................... $ 992,250 $ 1,641,500
------------ ------------
BIOMEDICS, GENETICS RESEARCH AND DEVELOPMENT-0.98%
121,000 Biogen, Inc. (a)............................................ 6,468,954 6,624,750
------------ ------------
BROADCASTING-0.31%
32,000 America Online, Inc. (a).................................... 1,342,350 2,108,000
------------ ------------
BUSINESS SERVICES AND SUPPLIES-1.67%
79,000 First Financial Management Corp............................. 5,072,958 7,119,875
202,800 Sensormatic Electronics Corp................................ 6,477,106 4,258,800
------------ ------------
11,550,064 11,378,675
------------ ------------
COMPUTER-SOFTWARE-17.84%
337,600 BMC Software, Inc. (a)...................................... 6,110,120 14,390,200
405,000 EMC Corp. (a)............................................... 8,354,557 8,302,500
74,000 HBO & Co.................................................... 2,726,840 4,070,000
954,000 Informix Corp. (a).......................................... 10,102,124 26,712,000
269,650 Microsoft Corp. (a)......................................... 7,934,830 24,942,625
771,400 Oracle Corp. (a)............................................ 4,227,686 30,952,425
216,500 Parametric Technology Corp. (a)............................. 6,327,022 11,961,625
------------ ------------
45,783,179 121,331,375
------------ ------------
DRUGS-0.19%
28,400 Forest Laboratories, Inc. (a)............................... 1,247,867 1,270,900
------------ ------------
ELECTRONIC-COMMUNICATION SECURITY-2.67%
204,000 ADC Telecommunications, Inc. (a)............................ 6,637,777 7,905,000
210,000 Qualcomm, Inc. (a).......................................... 8,068,746 10,237,500
------------ ------------
14,706,523 18,142,500
------------ ------------
ELECTRONIC-CONTROLS AND EQUIPMENT-6.38%
540,000 American Power Conversion Corp. (a) 7,868,504 9,045,000
53,000 Applied Materials, Inc. (a)................................. 5,503,732 5,512,000
230,900 Lam Research Corp. (a)...................................... 7,814,131 13,911,725
420,600 Solectron Corp. (a)......................................... 11,676,729 14,931,300
------------ ------------
32,863,096 43,400,025
------------ ------------
ELECTRONIC-SEMICONDUCTOR AND CAPACITOR-5.37%
190,000 Cypress Semiconductor Corp. (a)............................. 5,570,112 8,668,750
191,000 Intel Corp.................................................. 4,058,639 11,722,625
210,000 Micron Technology, Inc...................................... 5,814,005 16,143,750
------------ ------------
15,442,756 36,535,125
------------ ------------
FINANCE COMPANIES-3.49%
213,000 Franklin Resources, Inc..................................... 2,787,446 11,715,000
523,700 Mercury Finance Co.......................................... 8,620,416 11,979,637
------------ ------------
11,407,862 23,694,637
------------ ------------
HEALTH CARE SERVICES-4.56%
116,000 Medaphis Corp. (a).......................................... 3,306,728 2,682,500
130,000 Oxford Health Plans, Inc. (a)............................... 5,739,244 6,370,000
104,900 PacifiCare Health Systems, Inc. Class B (a)................. 4,548,720 6,005,525
188,000 U.S. HealthCare, Inc........................................ 6,731,514 6,016,000
142,000 United Healthcare Corp...................................... 5,157,262 5,999,500
<CAPTION>
Market
Shares Cost (b) Value (c)
- -------- ------------ ------------
<C> <S> <C> <C>
134,000 Vencor, Inc. (a)............................................ $ 4,199,635 $ 3,969,750
------------ ------------
29,683,103 31,043,275
------------ ------------
HOTEL AND MOTEL-0.89%
144,200 Harrah's Entertainment, Inc. (a)............................ 3,025,850 4,596,375
72,100 Promus Hotel Corp. (a)...................................... 1,259,630 1,487,062
------------ ------------
4,285,480 6,083,437
------------ ------------
MACHINERY-OIL AND WELL-1.09%
290,000 Petroleum Geo Services A/S ADS (a) 6,961,011 7,431,250
------------ ------------
MISCELLANEOUS-2.27%
452,100 CUC International, Inc. (a)................................. 7,844,614 15,427,913
------------ ------------
OFFICE EQUIPMENT AND SUPPLIES-1.30%
185,000 Compaq Computer Corp. (a)................................... 6,907,330 8,833,750
------------ ------------
PUBLISHING-1.07%
118,800 Scholastic Corp. (a)........................................ 6,053,565 7,276,500
------------ ------------
RESTAURANTS AND FRANCHISING-3.93%
443,300 Lone Star Steakhouse & Saloon, Inc. (a)..................... 6,776,715 17,787,413
277,800 Outback Steakhouse, Inc. (a)................................ 4,236,044 8,959,050
------------ ------------
11,012,759 26,746,463
------------ ------------
RETAIL-DEPARTMENT STORES-1.58%
117,600 Kohl's Corp. (a)............................................ 3,779,664 5,527,200
210,800 Wal-Mart Stores, Inc........................................ 1,494,008 5,190,950
------------ ------------
5,273,672 10,718,150
------------ ------------
RETAIL-MISCELLANEOUS-7.32%
197,300 Barnes & Noble, Inc. (a).................................... 4,940,859 7,719,363
273,749 Home Depot, Inc............................................. 1,678,473 10,915,741
190,000 Lowe's Companies, Inc....................................... 7,121,922 6,317,500
497,850 Office Depot, Inc. (a)...................................... 4,497,152 15,495,581
363,000 Staples, Inc. (a)........................................... 6,644,860 9,301,875
------------ ------------
24,883,266 49,750,060
------------ ------------
TELECOMMUNICATIONS-20.48%
967,200 3Com Corp. (a).............................................. 3,915,191 37,720,800
454,000 Cisco Systems, Inc. (a)..................................... 1,600,855 29,793,750
373,600 DSC Communications Corp. (a)................................ 11,883,884 19,614,000
107,000 MFS Communications Co. (a).................................. 4,581,250 4,734,750
131,000 Motorola, Inc............................................... 7,164,790 9,792,250
50,000 Nokia Corp. ADR............................................. 3,485,635 3,468,750
730,000 Tellabs, Inc. (a)........................................... 8,326,156 34,127,500
------------ ------------
40,957,761 139,251,800
------------ ------------
TELEPHONE SERVICES-4.86%
353,000 Mobile Telecommunications Technologies Corp. (a)............ 7,662,202 10,854,750
187,000 Paging Network, Inc. (a).................................... 5,656,750 7,386,500
440,000 Worldcom, Inc. (a).......................................... 10,109,381 14,822,500
------------ ------------
23,428,333 33,063,750
------------ ------------
TOTAL COMMON STOCKS......................................... $309,095,795 $601,753,835
------------ ------------
------------ ------------
</TABLE>
16
<PAGE>
SHORT-TERM INVESTMENTS-11.43%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
- ----------- ------------
<C> <S> <C>
BANKS-4.64%
$31,546,000 First Trust Money Market Variable Rate Time Deposit, Current
rate -- 5.66%............................................. $ 31,546,000
------------
DIVERSIFIED FINANCE-0.18%
1,242,000 Associates Corp. Master Variable Rate Note, Current
rate -- 5.79%............................................. 1,242,000
------------
U.S. OTHER DIRECT FEDERAL OBLIGATIONS-6.61%
9,000,000 Federal Farm Credit Bank, 5.72%, 9-7-1995................... 8,990,148
16,000,000 Federal Home Loan Bank, 5.72%, 9-7-1995..................... 15,982,484
20,000,000 Federal Farm Credit Bank, 5.76%, 9-5-1995................... 19,984,278
------------
44,956,910
------------
TOTAL SHORT-TERM INVESTMENTS................................ 77,744,910
------------
TOTAL INVESTMENTS IN SECURITIES (COST: $386,840,705) (B).... $679,498,745
------------
------------
</TABLE>
(a) Presently not paying dividend income.
(b) At August 31, 1995, the cost of securities for federal income tax purposes
was $386,840,705 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $298,996,874
Unrealized depreciation..................................... (6,338,834)
- --------------------------------------------------------------------------
Net unrealized appreciation................................. $292,658,040
- --------------------------------------------------------------------------
</TABLE>
(c) See Note A of accompanying Notes to Financial Statements regarding
valuation of securities
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets. Market value of investments in foreign
securities represents 1.60% of net assets as of August 31, 1995.
17
<PAGE>
FORTIS ADVANTAGE CAPITAL APPRECIATION PORTFOLIO
Schedule of Investments
August 31, 1995
COMMON STOCKS-93.79%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
- -------- ----------- -----------
<C> <S> <C> <C>
BROADCASTING-1.75%
25,000 America Online, Inc. (a)(e)................................. $ 214,061 $ 1,646,875
----------- -----------
BUSINESS SERVICES AND SUPPLIES-4.66%
120,000 Acxiom Corp. (a)............................................ 738,750 3,225,000
45,500 Landmark Graphics Corp. (a)................................. 1,282,606 1,160,250
----------- -----------
2,021,356 4,385,250
----------- -----------
COMPUTER-SOFTWARE-17.65%
16,000 Cerner Corp. (a)(e)......................................... 378,000 548,000
30,000 FSI International, Inc. (a)................................. 854,166 1,057,500
23,000 FTP Software, Inc. (a)(e)................................... 720,843 534,750
104,000 Informix Corp. (a)(e)....................................... 604,875 2,912,000
100,000 Input/Output, Inc. (a)...................................... 556,250 3,725,000
36,000 Legato Systems, Inc. (a).................................... 898,500 846,000
20,000 Macromedia, Inc. (a)........................................ 768,798 995,000
15,000 Medic Computer Systems, Inc. (a)............................ 721,680 660,000
25,000 Network General Corp. (a)................................... 730,268 879,687
31,000 Parametric Technology Corp. (a)............................. 304,238 1,712,750
24,900 Synopsys, Inc. (a)(e)....................................... 857,600 1,444,200
41,000 System Software Associates, Inc............................. 807,700 1,294,062
----------- -----------
8,202,918 16,608,949
----------- -----------
CONSTRUCTION-2.10%
60,000 Fastenal Co. (e)............................................ 356,875 1,980,000
----------- -----------
ELECTRONIC-COMMUNICATION SECURITY-1.26%
30,500 ADC Telecommunications, Inc. (a)............................ 980,237 1,181,875
----------- -----------
ELECTRONIC-CONTROLS AND EQUIPMENT-5.82%
41,700 Benchmark Electronics, Inc. (a)............................. 1,009,517 1,172,812
33,000 StrataCom, Inc. (a)(e)...................................... 820,875 1,617,000
68,000 Ultratech Stepper, Inc. (a)................................. 901,875 2,686,000
----------- -----------
2,732,267 5,475,812
----------- -----------
ELECTRONIC-DEFENSE-1.02%
30,000 Trimble Navigation Limited (a).............................. 876,000 963,750
----------- -----------
ELECTRONIC-SEMICONDUCTOR AND CAPACITOR-10.90%
18,750 Alliance Semiconductor, Corp. (a)(e)........................ 606,465 733,594
23,500 Integrated Device Technology, Inc. (a)...................... 949,500 1,354,188
23,500 Integrated Silicon
Solutions, Inc. (a)(e).................................... 981,408 1,169,125
30,000 Paradigm Technology, Inc. (a)(e)............................ 964,170 990,000
59,000 Unitrode Corp. (a).......................................... 1,129,256 1,770,000
99,000 Xilinx, Inc. (a)............................................ 1,285,926 4,244,625
----------- -----------
5,916,725 10,261,532
----------- -----------
HEALTH CARE SERVICES-7.05%
7,000 American Oncology
Resources, Inc. (a)....................................... 147,000 264,250
43,000 Genesis Health Ventures, Inc. (a)(e)........................ 773,603 1,359,875
40,000 Health Care & Retirement Corp. (a).......................... 340,000 1,260,000
17,400 Healthsource, Inc. (a)...................................... 698,436 696,000
14,000 Medaphis Corp. (a)(e)....................................... 399,324 323,750
53,000 Medpartners, Inc. (a)(e).................................... 1,109,284 1,470,750
30,000 Omnicare, Inc. (e).......................................... 592,500 997,500
<CAPTION>
Market
Shares Cost (b) Value (c)
- -------- ----------- -----------
<C> <S> <C> <C>
17,000 Summit Medical Systems, Inc. (a)(e)......................... $ 153,000 $ 263,500
----------- -----------
4,213,147 6,635,625
----------- -----------
LEISURE TIME-AMUSEMENTS-1.36%
45,000 Hollywood Entertainment Corp. (a)(e)........................ 763,275 1,282,500
----------- -----------
MACHINERY-OIL AND WELL-1.63%
60,000 Petroleum Geo Services A/S ADS (a).......................... 1,003,250 1,537,500
----------- -----------
MEDICAL SUPPLIES-1.87%
60,000 Steris Corp. (a)............................................ 1,067,130 1,762,500
----------- -----------
OFFICE EQUIPMENT AND SUPPLIES-4.12%
31,000 Avid Technology, Inc. (a)(e)................................ 692,825 1,232,250
40,000 Franklin Electronic Publishers, Inc. (a).................... 977,760 1,205,000
32,200 Sterling Software, Inc. (a)................................. 604,985 1,436,925
----------- -----------
2,275,570 3,874,175
----------- -----------
PRINTING-0.46%
14,000 Indigo NV (a)(e)............................................ 540,946 430,500
----------- -----------
RECREATION EQUIPMENT-1.45%
87,800 Callaway Golf Co. (e)....................................... 793,888 1,360,900
----------- -----------
RESTAURANTS AND FRANCHISING-7.86%
67,300 Applebees International, Inc. (e)........................... 1,201,960 2,019,000
39,000 Cheesecake Factory, Inc. (a)................................ 1,076,184 1,116,375
81,200 Lone Star Steakhouse & Saloon, Inc. (a)(e).................. 356,925 3,258,150
25,000 Papa John's International, Inc. (a)(e)...................... 720,625 1,000,000
----------- -----------
3,355,694 7,393,525
----------- -----------
RETAIL-MISCELLANEOUS-12.38%
73,000 Authentic Fitness Corp...................................... 862,723 1,615,125
40,000 Bed, Bath & Beyond, Inc. (a)(e)............................. 455,000 1,092,500
72,000 Books-A-Million, Inc. (a)(e)................................ 991,814 1,197,000
72,900 Corporate Express, Inc. (a)(e).............................. 777,600 1,704,038
42,000 Gymboree Corp. (a)(e)....................................... 993,000 1,249,500
50,000 Micro Warehouse, Inc. (a)(e)................................ 512,500 2,387,500
33,000 Sunglass Hut International, Inc. (a)(e)..................... 941,203 1,402,500
38,000 West Marine, Inc. (a)....................................... 732,813 997,500
----------- -----------
6,266,653 11,645,663
----------- -----------
TELECOMMUNICATIONS-3.95%
38,800 Cisco Systems, Inc. (a)..................................... 327,552 2,546,250
26,500 MFS Communications Co. (a).................................. 1,039,978 1,172,625
----------- -----------
1,367,530 3,718,875
----------- -----------
TRANSPORTATION-0.51%
25,000 American Freightways Corp. (a).............................. 385,938 484,375
----------- -----------
UTILITIES-TELEPHONE-3.86%
45,000 IntelCom Group, Inc. (a).................................... 644,000 585,000
55,000 LCI International, Inc. (a)(e).............................. 894,300 2,193,125
54,000 MIDCOM Communications, Inc. (a)............................. 712,125 850,500
----------- -----------
2,250,425 3,628,625
----------- -----------
WASTE DISPOSAL-2.13%
51,700 United Waste System, Inc. (a)............................... 1,158,950 2,003,375
----------- -----------
TOTAL COMMON STOCKS......................................... $46,742,835 $88,262,181
----------- -----------
----------- -----------
</TABLE>
18
<PAGE>
SHORT-TERM INVESTMENTS-6.16%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
- ---------- -----------
<C> <S> <C>
BANKS-2.61%
$2,453,064 First Trust Money Market Variable Rate Time Deposit, Current
rate -- 5.66%............................................. $2,453,064
-----------
DIVERSIFIED FINANCE-0.16%
154,000 Associates Corp. Master Variable Rate Note, Current
rate -- 5.79%............................................. 154,000
-----------
U.S. OTHER DIRECT FEDERAL OBLIGATIONS-3.39%
3,200,000 Federal Home Loan Bank, 5.74%, 9-18-1995.................... 3,190,976
-----------
TOTAL SHORT-TERM INVESTMENTS................................ 5,798,040
-----------
TOTAL INVESTMENTS IN SECURITIES (COST: $52,540,875) (B)..... $94,060,221
-----------
-----------
</TABLE>
(a) Presently not paying dividend income.
(b) At August 31, 1995, the cost of securities for federal income tax purposes
was $52,540,875 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $42,295,250
Unrealized depreciation..................................... (775,904)
- -------------------------------------------------------------------------
Net unrealized appreciation................................. $41,519,346
- -------------------------------------------------------------------------
</TABLE>
(c) See Note A of accompanying Notes to Financial Statements regarding
valuation of securities
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets. Market value of investments in foreign
securities represents 2.09% of net assets as of August 31, 1995.
(e) Security is fully or partially on loan at August 31, 1995. See Note A of
accompanying Notes to Financial Statements.
19
<PAGE>
Statements of Assets and Liabilities
August 31, 1995
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
FORTIS FORTIS
ADVANTAGE ADVANTAGE
ASSET FORTIS FORTIS FORTIS CAPITAL
ALLOCATION CAPITAL FIDUCIARY GROWTH APPRECIATION
PORTFOLIO FUND FUND FUND PORTFOLIO
------------ ------------ ----------- ------------ ------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments in securities, as detailed in the
accompanying schedules, at market (cost
$109,000,770; $172,409,828; $38,295,875;
$386,840,705; and$52,540,875; respectively)
(Note A)...................................... $138,565,720 $296,550,979 $65,445,464 $679,498,745 $ 94,060,221
Cash on deposit with custodian.................. -- 799 289 761 19,950
Collateral for securities lending transactions
(Note A)...................................... 25,403,427 77,200,014 11,098,986 -- 33,008,900
Receivables
Investment securities sold.................... 3,095,760 -- -- 756,583 --
Interest and dividends........................ 856,090 790,493 29,278 184,367 16,952
Subscriptions of capital stock................ 21,484 50,853 2,429 117,181 96,480
Deferred registration costs (Note A)............ 25,187 29,297 21,952 38,598 23,729
Prepaid expenses................................ 294 566 8 2,161 --
------------ ------------ ----------- ------------ ------------
TOTAL ASSETS...................................... 167,967,962 374,623,001 76,598,406 680,598,396 127,226,232
------------ ------------ ----------- ------------ ------------
LIABILITIES:
Bank overdraft.................................. 72,113 -- -- -- --
Payable upon return of securities loaned (Note
A)............................................ 25,403,427 77,200,014 11,098,986 -- 33,008,900
Payable for investment securities purchased..... 3,252,813 -- -- -- --
Redemptions of capital stock.................... 31,306 -- -- 58,579 25,350
Payable for investment advisory and management
fees.......................................... 110,491 214,675 55,338 437,929 78,547
Payable for distribution fees................... 3,600 4,295 983 9,558 2,365
Accounts payable and accrued expenses........... 10,293 18,052 22,451 30,326 9,434
------------ ------------ ----------- ------------ ------------
TOTAL LIABILITIES................................. 28,884,043 77,437,036 11,177,758 536,392 33,124,596
------------ ------------ ----------- ------------ ------------
NET ASSETS:
Net proceeds of capital stock, par value $.01
per share*.................................... 105,935,333 172,763,353 37,762,476 352,523,835 51,860,897
Unrealized appreciation of investments.......... 29,564,950 124,141,151 27,149,589 292,658,040 41,519,346
Undistributed net investment income............. 772,587 281,461 -- -- --
Accumulated net realized gain (loss) from the
sale of investments........................... 2,811,049 -- 508,584 34,880,129 721,393
------------ ------------ ----------- ------------ ------------
TOTAL NET ASSETS.................................. $139,083,919 $297,185,965 $65,420,649 $680,062,004 $ 94,101,636
------------ ------------ ----------- ------------ ------------
------------ ------------ ----------- ------------ ------------
SHARES OUTSTANDING AND NET ASSET VALUE PER SHARE:
Class A shares (based on net assets of
$132,938,523; $291,262,852; $63,194,913;
$670,752,599; and $90,918,223; respectively
and 8,049,167; 13,728,864; 1,777,926;
20,537,904; 2,964,190 shares outstanding;
respectively)................................. $16.52 $21.22 $35.54 $32.66 $30.67
------------ ------------ ----------- ------------ ------------
Class B shares (based on net assets of $692,449;
$1,527,021; $473,005; $2,178,800; and
$841,251; respectively and 42,077; 72,226;
13,381; 67,079; and 27,522 shares outstanding;
respectively)................................. $16.46 $21.14 $35.35 $32.48 $30.57
------------ ------------ ----------- ------------ ------------
Class C shares (based on net assets of $777,170;
$343,811; $272,033; $263,798; and $227,203;
respectively and 47,355; 16,271; 7,684; 8,120;
and 7,431 shares outstanding; respectively)... $16.41 $21.13 $35.40 $32.49 $30.58
------------ ------------ ----------- ------------ ------------
Class H shares (based on net assets of
$4,675,777; $4,052,281; $1,480,698;
$6,866,807; and $2,114,959; respectively and
284,416; 191,696; 41,886; 211,359; and 69,156
shares outstanding; respectively)............. $16.44 $21.14 $35.35 $32.49 $30.58
------------ ------------ ----------- ------------ ------------
*Authorized 10,000,000,000; 10,000,000,000; 100,000,000,000; 100,000,000,000; and 10,000,000,000 shares; respectively
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
20
<PAGE>
STATEMENTS OF OPERATIONS
For the Year Ended August 31, 1995
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
FORTIS FORTIS
ADVANTAGE ADVANTAGE
ASSET FORTIS FORTIS FORTIS CAPITAL
ALLOCATION CAPITAL FIDUCIARY GROWTH APPRECIATION
PORTFOLIO* FUND FUND FUND PORTFOLIO*
------------ ------------ ------------ ------------- ------------
<S> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME:
Income:
Interest income............................... $ 4,861,067 $ 3,082,278 $ 363,487 $ 5,043,537 $ 414,831
Dividend income............................... 190,652 1,158,022 217,598 706,607 24,705
Fee income (Note A)........................... 14,486 23,444 5,525 -- 105,994
------------ ------------ ------------ ------------- ------------
Total income.................................... 5,066,205 4,263,744 586,610 5,750,144 545,530
------------ ------------ ------------ ------------- ------------
Expenses:
Investment advisory and management fees (Note
B).......................................... 997,289 2,246,268 537,646 4,517,570 627,249
Distribution fees (Class A) (Note B).......... 459,062 638,395 132,504 1,445,503 277,984
Distribution fees (Class B) (Note B).......... 1,865 4,949 1,325 7,773 2,261
Distribution fees (Class C) (Note B).......... 2,372 973 717 747 621
Distribution fees (Class H) (Note B).......... 14,020 12,454 5,586 20,264 6,676
Registration fees............................. 54,783 58,488 51,358 107,000 57,771
Shareholders' notices and reports............. 52,072 80,190 47,800 200,000 42,473
Legal and auditing fees....................... 27,887 69,784 56,800 81,200 21,846
Custodian fees................................ 16,046 37,339 19,400 90,000 17,558
Directors' fees and expenses.................. 5,768 26,510 16,210 45,000 5,798
Other......................................... 9,952 20,513 5,750 47,000 6,413
------------ ------------ ------------ ------------- ------------
Total expenses.................................. 1,641,116 3,195,863 875,096 6,562,057 1,066,650
------------ ------------ ------------ ------------- ------------
NET INVESTMENT INCOME (LOSS)...................... 3,425,089 1,067,881 (288,486) (811,913) (521,120)
------------ ------------ ------------ ------------- ------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS (NOTE
A):
Net realized gain from security transactions.... 2,925,495 24,924 928,972 38,024,044 1,148,184
Net change in unrealized appreciation of
investments................................... 14,902,688 51,715,498 11,231,862 108,759,948 22,420,087
------------ ------------ ------------ ------------- ------------
NET GAIN ON INVESTMENTS........................... 17,828,183 51,740,422 12,160,834 146,783,992 23,568,271
------------ ------------ ------------ ------------- ------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS...................................... $21,253,272 $52,808,303 $11,872,348 $ 145,972,079 $23,047,151
------------ ------------ ------------ ------------- ------------
------------ ------------ ------------ ------------- ------------
*For the period November 1, 1994 through August 31, 1995 (Note C).
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
21
<PAGE>
FORTIS ADVANTAGE ASSET ALLOCATION PORTFOLIO
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
FOR THE
TEN-MONTH
PERIOD ENDED FOR THE
AUGUST 31, YEAR ENDED
1995 OCTOBER 31,
(NOTE C) 1994
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income........................... $ 3,425,089 $ 2,930,871
Net realized gain from security transactions.... 2,925,495 788,635
Net change in unrealized appreciation
(depreciation) of investments in securities... 14,902,688 (2,994,032)
------------ ------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS...................................... 21,253,272 725,474
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A....................................... (3,216,965) (2,556,356)
Class B....................................... (4,269) --
Class C....................................... (6,010) --
Class H....................................... (32,044) --
From net realized gains on investments
Class A....................................... (736,358) (5,171,318)
Class B....................................... (258) --
Class C....................................... (158) --
Class H....................................... (1,337) --
------------ ------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS............... (3,997,399) (7,727,674)
------------ ------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from sale of shares
Class A (934,550 and 2,102,540 shares)........ 14,063,680 30,350,907
Class B (42,825 shares)....................... 660,329 --
Class C (50,730 shares)....................... 771,696 --
Class H (290,527 shares)...................... 4,432,310 --
Proceeds from shares issued as a result of
reinvested dividends
Class A (247,207 and 485,931 shares).......... 3,599,514 6,992,258
Class B (292 shares).......................... 4,448 --
Class C (402 shares).......................... 6,160 --
Class H (1,905 shares)........................ 29,064 --
Less cost of repurchase of shares
Class A (1,398,564 and 1,354,658 shares)...... (20,935,112) (19,434,221)
Class B (1,040 shares)........................ (15,962) --
Class C (3,777 shares)........................ (59,287) --
Class H (8,016 shares)........................ (123,666) --
------------ ------------
NET INCREASE IN NET ASSETS FROM SHARE
TRANSACTIONS.................................... 2,433,174 17,908,944
------------ ------------
TOTAL INCREASE IN NET ASSETS...................... 19,689,047 10,906,744
NET ASSETS:
Beginning of period............................. 119,394,872 108,488,128
------------ ------------
End of period (includes undistributed net
investment income of $772,587 and $492,397,
respectively)................................. $139,083,919 $119,394,872
------------ ------------
------------ ------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
22
<PAGE>
FORTIS CAPITAL FUND
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
AUGUST 31, AUGUST 31,
1995 1994
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income........................... $ 1,067,881 $ 982,470
Net realized gain from security transactions.... 24,924 10,237,114
Net change in unrealized appreciation of
investments in securities..................... 51,715,498 12,923,960
------------ ------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS...................................... 52,808,303 24,143,544
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A....................................... (1,091,491) (1,645,959)
Class B....................................... (147) --
Class C....................................... (24) --
Class H....................................... (324) --
From net realized gains on investments
Class A....................................... (10,244,029) (18,967,588)
Class B....................................... (2,531) --
Class C....................................... (68) --
Class H....................................... (2,368) --
------------ ------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS............... (11,340,982) (20,613,547)
------------ ------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from sale of shares
Class A (1,643,037 and 1,232,755 shares)...... 30,014,520 21,693,806
Class B (75,949 shares)....................... 1,426,190 --
Class C (16,667 shares)....................... 315,873 --
Class H (194,028 shares)...................... 3,659,178 --
Proceeds from shares issued as a result of
reinvested dividends
Class A (639,451 and 1,112,749 shares)........ 10,561,400 19,145,433
Class B (163 shares).......................... 2,678 --
Class C (6 shares)............................ 91 --
Class H (138 shares).......................... 2,724 --
Less cost of repurchase of shares
Class A (1,940,448 and 2,551,486 shares)...... (35,907,590) (44,961,545)
Class B (3,886 shares)........................ (77,466) --
Class C (402 shares).......................... (8,239) --
Class H (2,470 shares)........................ (47,144) --
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE
TRANSACTIONS.................................... 9,942,215 (4,122,306)
------------ ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS........... 51,409,536 (592,309)
NET ASSETS:
Beginning of year............................... 245,776,429 246,368,738
------------ ------------
End of year (includes undistributed net
investment income of $285,111 and $305,566,
respectively)................................. $297,185,965 $245,776,429
------------ ------------
------------ ------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
23
<PAGE>
FORTIS FIDUCIARY FUND
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
AUGUST 31, AUGUST 31,
1995 1994
------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment loss............................. $ (288,486) $ (230,294)
Net realized gain from security transactions.... 928,972 1,569,831
Net change in unrealized appreciation of
investments in securities..................... 11,231,862 2,723,976
------------- -------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS...................................... 11,872,348 4,063,513
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From realized gains on investments
Class A....................................... (1,980,907) (4,856,194)
Class B....................................... (1,202) --
Class C....................................... (214) --
Class H....................................... (4,499) --
------------- -------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS............... (1,986,822) (4,856,194)
------------- -------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from sale of shares
Class A (429,389 and 515,441 shares).......... 13,255,649 15,607,235
Class B (13,622 shares)....................... 435,257 --
Class C (8,195 shares)........................ 261,396 --
Class H (46,909 shares)....................... 1,433,120 --
Proceeds from shares issued as a result of
reinvested dividends
Class A (69,865 and 168,978 shares)........... 1,932,493 4,743,211
Class B (44 shares)........................... 1,202 --
Class C (8 shares)............................ 215 --
Class H (163 shares).......................... 4,499 --
Less cost of repurchase of shares
Class A (336,667 and 650,116 shares).......... (10,434,831) (18,268,198)
Class B (285 shares).......................... (9,491) --
Class C (519 shares).......................... (16,128) --
Class H (5,186 shares)........................ (160,979) --
------------- -------------
NET INCREASE IN NET ASSETS FROM SHARE
TRANSACTIONS.................................... 6,702,402 2,082,248
------------- -------------
TOTAL INCREASE IN NET ASSETS...................... 16,587,928 1,289,567
NET ASSETS:
Beginning of year............................... 48,832,721 47,543,154
------------- -------------
End of year..................................... $ 65,420,649 $ 48,832,721
------------- -------------
------------- -------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
24
<PAGE>
FORTIS GROWTH FUND
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
AUGUST 31, AUGUST 31,
1995 1994
------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment loss............................. $ (811,913) $ (2,037,846)
Net realized gain from security transactions.... 38,024,044 7,321,947
Net change in unrealized appreciation
(depreciation) of investments in securities... 108,759,948 (24,780,117)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS................................. 145,972,079 (19,496,016)
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From realized gains on investments
Class A....................................... (10,376,803) (36,528,832)
Class B....................................... (2,186) --
Class C....................................... (227) --
Class H....................................... (4,517) --
------------- -------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS............... (10,383,733) (36,528,832)
------------- -------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from sale of shares
Class A (3,595,502 and 4,390,426 shares)...... 97,595,401 120,052,496
Class B (69,263 shares)....................... 1,891,029 --
Class C (8,239 shares)........................ 233,665 --
Class H (221,567 shares)...................... 6,230,792 --
Proceeds from shares issued as a result of
reinvested dividends
Class A (401,424 and 1,248,862 shares)........ 9,887,238 34,930,672
Class B (89 shares)........................... 2,186 --
Class C (9 shares)............................ 227 --
Class H (174 shares).......................... 4,276 --
Less cost of repurchase of shares
Class A (4,738,197 and 4,474,493 shares)...... (129,577,320) (125,486,181)
Class B (2,273 shares)........................ (70,358) --
Class C (128 shares).......................... (3,645) --
Class H (10,382 shares)....................... (309,141) --
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE
TRANSACTIONS.................................... (14,115,650) 29,496,987
------------- -------------
TOTAL INCREASE (DECREASE) IN NET ASSETS........... 121,472,696 (26,527,861)
NET ASSETS:
Beginning of year............................... 558,589,308 585,117,169
------------- -------------
End of year..................................... $ 680,062,004 $ 558,589,308
------------- -------------
------------- -------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
25
<PAGE>
FORTIS ADVANTAGE CAPITAL APPRECIATION PORTFOLIO
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
FOR THE
TEN-MONTH
PERIOD ENDED FOR THE
AUGUST 31, YEAR ENDED
1995 OCTOBER 31,
(NOTE C) 1994
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment loss............................. $ (521,120) $ (367,981)
Net realized gain (loss) from security
transactions.................................. 1,148,184 (426,791)
Net change in unrealized appreciation
(depreciation) of investments in securities... 22,420,087 (4,853,816)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS................................. 23,047,151 (5,648,588)
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From realized gains on investments
Class A....................................... -- (3,890,570)
------------ ------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS............... -- (3,890,570)
------------ ------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from sale of shares
Class A (695,629 and 1,429,148 shares)........ 17,177,636 33,401,050
Class B (27,699 shares)....................... 727,381 --
Class C (7,466 shares)........................ 195,229 --
Class H (74,376 shares)....................... 1,892,069 --
Proceeds from shares issued as a result of
reinvested dividends
Class A (0 and 160,390 shares)................ -- 3,804,448
Less cost of repurchase of shares
Class A (696,664 and 758,288 shares).......... (17,143,294) (17,748,768)
Class B (177 shares).......................... (4,692) --
Class C (35 shares)........................... (959) --
Class H (5,220 shares)........................ (140,589) --
------------ ------------
NET INCREASE IN NET ASSETS FROM SHARE
TRANSACTIONS.................................... 2,702,781 19,456,730
------------ ------------
TOTAL INCREASE IN NET ASSETS...................... 25,749,932 9,917,572
NET ASSETS:
Beginning of period............................. 68,351,704 58,434,132
------------ ------------
End of period................................... $94,101,636 $68,351,704
------------ ------------
------------ ------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
26
<PAGE>
Fortis Stock Funds
Notes to Financial Statements
- --------------------------------------------------------------------------------
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
The funds are open-end, diversified management investment companies, each of
which has different investment objectives and their own investment portfolios
and net asset values. Asset Allocation and Capital Appreciation Portfolios
are a series of Fortis Advantage Portfolios, Inc. ("Fortis Advantage") and
Fortis Capital Fund is a series of Fortis Equity Portfolios, Inc. ("Fortis
Equity"). The Articles of Incorporation of Fortis Advantage and Fortis Equity
permits the Board of Directors to create additional portfolios in the future.
The Advantage Funds, Fortis Capital Fund, Fortis Growth Fund and Fortis
Fiduciary Fund offer Class A, Class B, Class C and Class H shares. The funds
began to issue multiple class shares effective November 14, 1994. Class A
shares are sold with a front-end sales charge. Class B and H shares are sold
without a front-end sales charge and 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 are sold without a front-end sales charge
and may be subject to contingent deferred sales charge for one year. 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.
The significant accounting policies followed by the Funds are summarized as
follows:
SECURITY VALUATION: Investments in securities traded on a national securities
exchange or on the NASDAQ National Market System are valued at the last
reported sales price; listed securities and over-the-counter securities for
which no sale was reported are valued at the last reported bid price.
Long-term debt securities are valued at current market prices on the basis of
valuations furnished by an independent pricing service. Short-term
investments, with maturities of less than 60 days when acquired, or which
subsequently are within 60 days of maturity, are valued at amortized cost.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME: Security transactions are
accounted for on the trade date and dividend income is recorded on the
ex-dividend date. Interest income is recorded on the accrual basis. Realized
security gains and losses are determined using the identified cost method. For
financial reporting purposes, except for original issue discount, the
Advantage Asset Allocation portfolio does not amortize bond premium and
discount.
For the year ended August 31, 1995 for Fortis Capital Fund, Fortis Fiduciary
Fund, and Fortis Growth Fund, and the ten-month period
for Fortis Advantage Asset Allocation Portfolio and Capital Appreciation
Portfolio, the cost of purchases and proceeds from sales of securities (other
than short-term securities) were as follows:
<TABLE>
<CAPTION>
Cost of Proceeds
Purchases from Sales
<S> <C> <C>
- -------------------------------------------------------------------------------
Advantage Asset Allocation Portfolio............... $110,235,955 $112,520,328
Fortis Capital Fund................................ 80,274,156 94,848,071
Fortis Fiduciary Fund.............................. 5,708,174 7,722,661
Fortis Growth Fund................................. 172,834,223 133,756,294
Advantage Capital Appreciation Portfolio........... 23,715,058 13,862,186
</TABLE>
LENDING OF PORTFOLIO SECURITIES: At August 31, 1995 securities were on loan to
brokers from the Funds. For collateral, the Funds' custodian received cash
which is maintained in a separate account and invested by the custodian in
short term investment vehicles. The risks to the Funds in security lending
transactions are that the borrower may not provide additional collateral when
required or return the securities when due and that the proceeds from the sale
of investments made with cash collateral received will be less than amounts
required to be returned to the borrowers. Value of securities on loan at
August 31, 1995 and fee income from securities lending was as follows for the
year ended August 31, 1995 for Fortis Capital Fund, Fortis Fiduciary Fund, and
for the ten-month period for Fortis Advantage Asset Allocation Portfolio and
Capital Appreciation Portfolio:
<TABLE>
<CAPTION>
Fee Income
For Period
Ended
Securities August 31,
On Loan Collateral 1995
<S> <C> <C> <C>
- -------------------------------------------------------------------
Advantage Asset Allocation
Portfolio.................. $23,593,162 $25,403,427 $ 14,486
Fortis Capital Fund......... 75,571,667 77,200,014 23,444
Fortis Fiduciary Fund....... 10,893,488 11,098,986 5,525
Advantage Capital
Appreciation Portfolio..... 32,624,134 33,008,900 105,994
</TABLE>
INCOME TAXES: The portfolios intend to qualify, under the Internal Revenue
Code, as regulated investment companies and if so qualified, will not have to
pay federal income taxes to the extent their taxable net income is
distributed. For tax purposes, each portfolio is a single taxable entity.
On a calendar year basis, each portfolio intends to distribute substantially
all of its net investment income and realized gains, if any, to avoid payment
of federal excise taxes.
27
<PAGE>
FORTIS STOCK FUNDS
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
Net investment income and net realized gains may differ for financial
statement and tax purposes primarily because of the recognition of market
discount as ordinary income for tax purposes for Advantage Asset Allocation
Portfolio and wash sale transactions. The character of distributions made
during the year from net investment income or net realized gains may,
therefore, differ from their ultimate characterization for federal income tax
purposes. Also, due to the timing of dividend distributions, the fiscal year
in which amounts are distributed may differ from the year that the income or
realized gains (losses) were recorded by the fund.
On the Statement of Assets and Liabilities, due to permanent book-to-tax
differences, including net operating losses of certain funds, accumulated net
realized gain (loss) and undistributed net investment income have been
increased (decreased), resulting in a net reclassification adjustment to
reduce paid-in-capital by the following:
<TABLE>
<CAPTION>
Advantage Advantage
Asset Capital
Allocation Fiduciary Growth Appreciation
Portfolio Fund Fund Portfolio
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------
Accumulated Net
Realized Gain
(Loss).............. $(114,389) $ 0 $ 0 $ 0
Undistributed Net
Investment Income... 114,389 288,486 811,913 521,120
----------- --------- --------- ------------
Paid-in-Capital...... $ 0 $(288,486) $(811,913) $ (521,120)
----------- --------- --------- ------------
</TABLE>
DEFERRED COSTS: Registration costs are deferred and charged to income over the
registration period.
INCOME AND CAPITAL GAINS DISTRIBUTIONS: It is the policy of Advantage Asset
Allocation Portfolio and Fortis Capital Fund to pay quarterly distributions
from net investment income; Advantage Capital Appreciation Portfolio, Fortis
Fiduciary Fund and Fortis Growth Fund to pay annual distributions from net
investment income. Distributions of net realized capital gains, if any, are
made annually by each Fund. The distributions are recorded on the record date
and are payable in cash or reinvested in additional shares of the portfolio at
net asset value without any charge to the shareholder.
ILLIQUID SECURITIES: At August 31, 1995, investments in securities for the
Asset Allocation Portfolio included issues that are illiquid. The fund
currently limits investments in illiquid securities to 15% of net assets, at
market value, at the date of purchase. The aggregate value of such securities
at August 31, 1995, was $882,500 which represents .63% of 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 15%
limitation specified above.
B. PAYMENTS TO RELATED PARTIES: Fortis Advisers, Inc., is the investment adviser
for each Fund. Investment advisory and management fees are computed for
Fortis Advantage Asset Allocation, Fortis Capital Fund, Fortis Fiduciary
Fund, Fortis Growth Fund and Fortis Advantage Capital Appreciation Portfolios
at an annual rate of 1% of the first $100 million of average daily net
assets, .80% for the next $150 million, and .70% for average assets over $250
million of each portfolio.
In addition to the investment advisory and management fee, Classes A, B, C
and H pay Fortis Investors, Inc. (the funds' principal underwriter)
distribution fees equal to .45% of average daily net assets for Class A for
each of Asset Allocation and Capital appreciation Portfolios and .25% of
average daily net assets for Class A for each of Capital Fund, Fiduciary Fund
and Growth Fund and 1.00% of average daily net assets for Classes B, C and H
for each fund on an annual basis, to be used to compensate those who sell
shares of the fund and to pay certain other expenses of selling fund shares.
Fortis Investors, Inc. also received sales charges (paid by purchasers or
redeemers of the funds' shares) as follows:
<TABLE>
<CAPTION>
Class A Class B Class C Class H
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------
Advantage Asset Allocation
Portfolio................... $ 317,417 $ 234 $ 386 $ 106
Capital Fund................. $ 490,909 $ 44 $ 6 $ 377
Fiduciary Fund............... $ 148,813 $ 44 $ 104 $ 180
Growth Fund.................. $1,596,267 $ 802 $ 32 $ 1,890
Advantage Capital
Appreciation Portfolio...... $ 268,653 $ 109 $ 2 $ 332
</TABLE>
Legal fees and expenses aggregating $9,601; $49,497; $40,000; $59,000 and
$6,172 for Advantage Asset Allocation Portfolio, Fortis Capital Fund, Fortis
Fiduciary Fund, Fortis Growth Fund, and Advantage Capital Appreciation
Portfolio, respectively, for the year ended August 31, 1995 for Fortis
Capital Fund, Fortis Fiduciary Fund, and Fortis Growth Fund, and for the
ten-month period ended for Fortis Advantage Asset Allocation Portfolio and
Capital Appreciation Portfolio, were paid to a law firm of which the
secretary of the funds is a partner.
C. Effective August 31, 1995, Fortis Advantage Asset Allocation and Capital
Appreciation Portfolios changed their fiscal accounting and tax year-end to
August 31 (previously October 31).
28
<PAGE>
FORTIS STOCK FUNDS
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
D. FINANCIAL HIGHLIGHTS: Selected per share historical data was as follows:
<TABLE>
<CAPTION>
Class A
For the Year Ended October 31,
---------------------------------------------
ASSET ALLOCATION PORTFOLIO 1995** 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.............. $ 14.44 $ 15.43 $ 14.00 $ 13.34 $ 10.72
----------- --------- --------- --------- ---------
Operations:
Investment income-net........................... .43 .37 .42 .53 .50
Net realized and unrealized gain (loss) on
investments................................... 2.14 (.31) 1.52 .96 2.37
----------- --------- --------- --------- ---------
Total from operations............................. 2.57 .06 1.94 1.49 2.87
----------- --------- --------- --------- ---------
Distributions to shareholders:
From investment income-net...................... (.40) (.33) (.51) (.82) (.25)
From net realized gains......................... (.09) (.72) -- -- --
Excess distributions of net realized gains...... -- -- -- (.01) --
----------- --------- --------- --------- ---------
Total Distributions to Shareholders............... (.49) (1.05) (.51) (.83) (.25)
----------- --------- --------- --------- ---------
Net asset value, end of period.................... $ 16.52 $ 14.44 $ 15.43 $ 14.00 $ 13.34
----------- --------- --------- --------- ---------
Total return@..................................... 18.25% .48% 14.20% 11.55% 27.25%
Net assets at end of period (000's omitted)....... $ 132,939 $ 119,395 $ 108,488 $ 89,674 $ 27,270
Ratio of expenses to average daily net assets..... 1.57%* 1.55% 1.58% 1.58% 1.83%
Ratio of net investment income to average daily
net assets....................................... 3.31%* 2.60% 2.90% 4.05% 4.11%
Portfolio turnover rate........................... %94 94% 103% 45% 64%
</TABLE>
<TABLE>
<CAPTION>
Class B Class C Class H
ASSET ALLOCATION PORTFOLIO 1995+ 1995+ 1995+
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------
Net asset value, beginning of period.............. $ 14.27 $ 14.27 $ 14.27
--------- --------- ---------
Operations:
Investment income-net........................... .39 .39 .39
Net realized and unrealized gains (losses) on
investments................................... 2.26 2.21 2.24
--------- --------- ---------
Total from operations............................. 2.65 2.60 2.63
--------- --------- ---------
Distribution to shareholders:
From investment income-net...................... (.37) (.37) (.37)
From net realized gains......................... (.09) (.09) (.09)
Excess distributions of net realized gains...... -- -- --
--------- --------- ---------
Total distributions to shareholders............... (.46) (.46) (.46)
--------- --------- ---------
Net asset value, end of period.................... $ 16.46 $ 16.41 $ 16.44
--------- --------- ---------
Total Return@..................................... 19.00% 18.64% 18.86%
Net assets end of period (000s omitted)........... $ 692 $ 777 $ 4,676
Ratio of expenses to average daily net assets..... 2.12%* 2.12%* 2.12%*
Ratio of net investment income to average daily
net assets....................................... 2.51%* 2.52%* 2.54%*
Portfolio turnover rate........................... 94%*** 94%*** 94%***
</TABLE>
* Annualized.
** Ten-month period ended August 31, 1995.
*** For the period ended August 31, 1995. Portfolio turnover computed at the
fund level.
@ These are the total returns during the periods, including reinvestment of all
dividend and capital gains distributions without adjustments for sales
charge.
+ For the period from November 14, 1994 (initial offering of shares) to August
31, 1995.
29
<PAGE>
FORTIS STOCK FUNDS
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A August
Year Ended August 31, 31,
----------------------------------------------- ---------
CAPITAL FUND 1995 1994 1993 1992 1991***
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.............. $ 18.36 $ 18.12 $ 17.86 $ 16.50 $ 13.55
----------- --------- --------- --------- ---------
Operations:
Investment income-net........................... .08 .07 .14 .13 .13
Net realized and unrealized gains (losses) on
investments................................... 3.62 1.73 1.25 1.63 4.03
----------- --------- --------- --------- ---------
Total from operations............................. 3.70 1.80 1.39 1.76 4.16
----------- --------- --------- --------- ---------
Distributions to shareholders:
From investment income-net...................... (.08) (.12) (.09) (.11) (.18)
From net realized gains......................... (.76) (1.44) (1.04) (.29) (1.03)
----------- --------- --------- --------- ---------
Total distributions to shareholders............... (.84) (1.56) (1.13) (.40) (1.21)
----------- --------- --------- --------- ---------
Net asset value, end of period.................... $ 21.22 $ 18.36 $ 18.12 $ 17.86 $ 16.50
----------- --------- --------- --------- ---------
Total return@..................................... 21.49% 10.56% 7.88% 10.77% 33.36%
Net assets end of period (000's omitted).......... $ 291,263 $ 245,776 $ 246,369 $ 223,865 $191,390
Ratio of expenses to average daily net assets..... 1.24% 1.21% 1.22% 1.23% 1.28%*
Ratio of net investment income to average daily
net assets....................................... .42% .41% .77% .72% 1.19%*
Portfolio turnover rate........................... %14 41% 68% 18% 34%
</TABLE>
<TABLE>
<CAPTION>
Class B Class C Class H
CAPITAL FUND 1995+ 1995+ 1995+
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------
Net asset value, beginning of period.............. $ 18.35 $ 18.35 $ 18.35
--------- --------- ---------
Operations:
Investment income-net........................... -- -- --
Net realized and unrealized gains (losses) on
investments................................... 3.58 3.57 3.58
--------- --------- ---------
Total from operations............................. 3.58 3.57 3.58
--------- --------- ---------
Distribution to shareholders:
From investment income-net...................... (.03) (.03) (.03)
From net realized gains......................... (.76) (.76) (.76)
--------- --------- ---------
Total distributions to shareholders............... (.79) (.79) (.79)
--------- --------- ---------
Net asset value, end of period.................... $ 21.14 $ 21.13 $ 21.14
--------- --------- ---------
Total Return@..................................... 20.74% 20.68% 20.74%
Net assets end of period (000s omitted)........... $ 1,527 $ 344 $ 4,052
Ratio of expenses to average daily net assets..... 1.99%* 1.99%* 1.99%*
Ratio of net investment income to average daily
net assets....................................... (.36%)* (.36%)* (.37%)*
Portfolio turnover rate........................... 14%** 14%** 14%**
</TABLE>
@ These are the total returns during the periods, including reinvestment of all
dividend and capital gains distributions without adjustments for sales
charge.
* Annualized.
** For the period ended August 31, 1995. Portfolio turnover computed at fund
level.
*** Nine-month period ended August 31, 1991.
+ For the period from November 14, 1994 (initial offering of shares) to August
31, 1995.
30
<PAGE>
FORTIS STOCK FUNDS
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A August
Year Ended August 31, 31,
----------------------------------------------- ---------
FORTIS FIDUCIARY FUND 1995 1994 1993 1992 1991***
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.............. $ 30.23 $ 30.07 $ 28.74 $ 26.77 $ 20.27
----------- --------- --------- --------- ---------
Operations:
Investment income (loss)-net.................... (.16) (.14) (.09) .04 .06
Net realized and unrealized gains (losses) on
investments................................... 6.68 2.99 3.11 2.68 6.48
----------- --------- --------- --------- ---------
Total from operations............................. 6.52 2.85 3.02 2.72 6.54
----------- --------- --------- --------- ---------
Distributions to shareholders:
From investment income-net...................... -- -- -- (.11) (.02)
From net realized gains......................... (1.21) (2.69) (1.69) (.64) (.02)
----------- --------- --------- --------- ---------
Total distributions to shareholders............... (1.21) (2.69) (1.69) (.75) (.04)
----------- --------- --------- --------- ---------
Net asset value, end of period.................... $ 35.54 $ 30.23 $ 30.07 $ 28.74 $ 26.77
----------- --------- --------- --------- ---------
Total return@..................................... 22.71% 10.17% 10.58% 10.28% 32.23%
Net assets end of period (000's omitted).......... $ 63,195 $ 48,833 $ 47,543 $ 43,504 $39,367
Ratio of expenses to average daily net assets..... 1.62% 1.45% 1.45% 1.47% 1.46%*
Ratio of net investment income (loss) to average
daily net assets................................. (.53%) (.45%) (.31%) .14% .42%*
Portfolio turnover rate........................... %12 25% 53% 26% 34%
</TABLE>
<TABLE>
<CAPTION>
Class B Class C Class H
FORTIS FIDUCIARY FUND 1995+ 1995+ 1995+
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------
Net asset value, beginning of period.............. $ 30.15 $ 30.15 $ 30.15
--------- --------- ---------
Operations:
Investment income (loss)-net.................... (.13) (.12) (.17)
Net realized and unrealized gains (losses) on
investments................................... 6.54 6.58 6.58
--------- --------- ---------
Total from operations............................. 6.41 6.46 6.41
--------- --------- ---------
Distribution to shareholders:
From investment income-net...................... -- -- --
From net realized gains......................... (1.21) (1.21) (1.21)
--------- --------- ---------
Total distributions to shareholders............... (1.21) (1.21) (1.21)
--------- --------- ---------
Net asset value, end of period.................... $ 35.35 $ 35.40 $ 35.35
--------- --------- ---------
Total Return@..................................... 22.38% 22.55% 22.38%
Net assets end of period (000s omitted)........... $ 473 $ 272 $ 1,481
Ratio of expenses to average daily net assets..... 2.37%* 2.37%* 2.37%*
Ratio of net investment loss to average daily net
assets........................................... (1.31%)* (1.31%)* (1.29%)*
Portfolio turnover rate........................... 12%** 12%** 12%**
</TABLE>
@ These are the total returns during the periods, including reinvestment of all
dividend and capital gains distributions without adjustments for sales
charge.
* Annualized.
** For the period ended August 31, 1995. Portfolio turnover computed at fund
level.
*** Eight-month period ended August 31, 1991.
+ For the period from November 14, 1994 (initial offering of shares) to August
31, 1995.
31
<PAGE>
FORTIS STOCK FUNDS
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A
Year Ended August 31,
------------------------------------------------- August 31,
GROWTH FUND 1995 1994 1993 1992 1991***
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.............. $ 26.25 $ 29.09 $ 24.31 $ 24.40 $ 17.47
---------- ---------- ---------- ---------- -----------
Operations:
Investment income (loss)-net.................... (.04) (.10) (.06) .05 --
Net realized and unrealized gains (losses) on
investments................................... 6.95 (.88) 5.52 1.16 6.93
---------- ---------- ---------- ---------- -----------
Total from operations............................. 6.91 (.98) 5.46 1.21 6.93
---------- ---------- ---------- ---------- -----------
Distributions to shareholders:
From investment income-net...................... -- -- (.04) (.02) --
From net realized gains......................... (.50) (1.86) (.64) (1.28) --
---------- ---------- ---------- ---------- -----------
Total distributions to shareholders............... (.50) (1.86) (.68) (1.30) --
---------- ---------- ---------- ---------- -----------
Net asset value, end of period.................... $ 32.66 $ 26.25 $ 29.09 $ 24.31 $ 24.40
---------- ---------- ---------- ---------- -----------
Total return@..................................... 26.92% (3.77%) 22.69% 4.72% 39.67%
Net assets end of period (000's omitted).......... $ 670,753 $ 558,589 $ 585,117 $ 473,258 $325,901
Ratio of expenses to average daily net assets..... 1.13% 1.09% 1.10% 1.13% 1.20%*
Ratio of net investment income (loss) to average
daily net assets................................. (.13%) (.36%) (.20%) .24% (.03%)*
Portfolio turnover rate........................... 27% 23% 49% 33% 33%
</TABLE>
<TABLE>
<CAPTION>
Class B Class C Class H
GROWTH FUND 1995+ 1995+ 1995+
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------
Net asset value, beginning of period.............. $ 25.85 $ 25.85 $ 25.85
---------- ---------- ----------
Operations:
Investment income (loss)-net.................... (.13) (.10) (.11)
Net realized and unrealized gains (losses) on
investments................................... 7.26 7.24 7.25
---------- ---------- ----------
Total from operations............................. 7.13 7.14 7.14
---------- ---------- ----------
Distribution to shareholders:
From investment income-net...................... -- -- --
From net realized gains......................... (.50) (.50) (.50)
---------- ---------- ----------
Total distributions to shareholders............... (.50) (.50) (.50)
---------- ---------- ----------
Net asset value, end of period.................... $ 32.48 $ 32.49 $ 32.49
---------- ---------- ----------
Total Return@..................................... 28.17% 28.21% 28.21%
Net assets end of period (000s omitted)........... $ 2,179 $ 264 $ 6,867
Ratio of expenses to average daily net assets..... 1.88%* 1.88%* 1.88%*
Ratio of net investment loss to average daily net
assets........................................... (1.09%)* (1.10%)* (1.10%)*
Portfolio turnover rate........................... 27%** 27%** 27%**
</TABLE>
@ These are the total returns during the periods, including reinvestment of all
dividend and capital gains distributions without adjustments for sales
charge.
* Annualized.
** For the period ended August 31, 1995. Portfolio turnover computed at fund
level.
*** Eight-month period ended August 31, 1991.
+ For the period from November 14, 1994 (initial offering of shares) to August
31, 1995.
32
<PAGE>
FORTIS STOCK FUNDS
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A
For the Year Ended October 31,
---------------------------------------------
CAPITAL APPRECIATION PORTFOLIO 1995# 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.............. $ 23.05 $ 27.38 $ 19.85 $ 19.80 $ 11.58
----------- --------- --------- --------- ---------
Operations:
Investment income (loss)-net***................. (.17) (.12) (.30) (.17) (.14)
Net realized and unrealized gain (loss) on
investments................................... 7.79 (2.45) 7.83 .22 8.36
----------- --------- --------- --------- ---------
Total from operations............................. 7.62 (2.57) 7.53 .05 8.22
----------- --------- --------- --------- ---------
Distributions to shareholders:
From net realized gains......................... -- (1.76) -- -- --
----------- --------- --------- --------- ---------
Net asset value, end of period.................. $ 30.67 $ 23.05 $ 27.38 $ 19.85 $ 19.80
----------- --------- --------- --------- ---------
Total return@..................................... 33.06% (9.56%) 37.93% .25% 70.98%
Net assets at end of period (000's omitted)....... $ 90,918 $ 68,352 $ 58,434 $ 43,207 $ 29,992
Ratio of expenses to average daily net assets..... 1.69%* 1.62% 1.62% 1.68% 1.82%
Ratio of net investment income (loss) to average
daily net assets................................. (.82%)* (.61%) (1.23%) (.88%) (.97%)
Portfolio turnover rate........................... %21 36% 60% 43% 93%
</TABLE>
<TABLE>
<CAPTION>
Class B Class C Class H
CAPITAL APPRECIATION PORTFOLIO 1995+ 1995+ 1995+
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------
Net asset value, beginning of period.............. $ 22.45 $ 22.45 $ 22.45
--------- --------- ---------
Operations:
Investment income (loss)-net***................. (.35) (.36) (.36)
Net realized and unrealized gains (losses) on
investments................................... 8.47 8.49 8.49
--------- --------- ---------
Total from operations............................. 8.12 8.13 8.13
--------- --------- ---------
Net asset value, end of period.................... $ 30.57 $ 30.58 $ 30.58
--------- --------- ---------
Total Return@..................................... 36.17% 36.21% 36.21%
Net assets end of period (000s omitted)........... $ 841 $ 227 $ 2,115
Ratio of expenses to average daily net assets..... 2.24%* 2.24%* 2.24%*
Ratio of net investment income (loss) to average
daily net assets................................. (1.61%)* (1.62%)* (1.62%)*
Portfolio turnover rate........................... 21%** 21%** 21%**
</TABLE>
* Annualized.
** For the period ended August 31, 1995. Portfolio turnover computed at the
fund level.
*** Per share amounts compiled based upon average shares outstanding for the
period.
# Ten-month period ended August 31, 1995.
@ These are the total returns during the periods, including reinvestment of all
dividend and capital gains distributions without adjustments for sales
charge.
+ For the period from November 14, 1994 (initial offering of shares) to August
31, 1995.
33
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders
Fortis Advantage Portfolios, Inc.
Fortis Equity Portfolios, Inc.
Fortis Fiduciary Fund, Inc.
Fortis Growth Fund, Inc.:
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments in securities, of Asset Allocation Portfolio and
Capital Appreciation Portfolio (portfolios within Fortis Advantage Portfolios,
Inc.), Fortis Capital Fund (a portfolio within Fortis Equity Portfolios, Inc.),
Fortis Fiduciary Fund, Inc., and Fortis Growth Fund, Inc. as of August 31, 1995
and the related statements of operations for the year then ended (period from
November 1, 1994 to August 31, 1995 for Asset Allocation Portfolio and Capital
Appreciation Portfolio), the statements of changes in net assets for each of the
years in the two-year period then ended (period from November 1, 1994 to August
31, 1995 and the year ended October 31, 1994 for Asset Allocation Portfolio and
Capital Appreciation Portfolio), and the financial highlights presented in
footnote D to the financial statements. These financial statements and the
financial highlights are the responsibility of fund management. Our
responsibility is to express an opinion on these financial statements and the
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and the financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Investment securities held in custody are confirmed to us by the
custodian. As to securities purchased and sold but not received or delivered, we
request confirmations from brokers, and where replies are not received, we carry
out other appropriate auditing procedures. 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
Asset Allocation Portfolio, Capital Appreciation Portfolio, Fortis Capital Fund,
Fortis Fiduciary Fund, Inc., and Fortis Growth Fund, Inc. as of August 31, 1995
and the results of their operations, changes in their net assets and the
financial highlights for the periods stated in the first paragraph above, in
conformity with generally accepted accounting principles.
KPMG Peat Marwick LLP
Minneapolis, Minnesota
October 6, 1995
34
<PAGE>
FEDERAL INCOME TAX INFORMATION
The information set forth below is for the fund's fiscal year as required by
federal tax law. Shareholders, however, must report distributions on a calendar
year basis for income tax purposes which may include distributions for portions
of two fiscal years of the fund. Accordingly, the information needed by
shareholders for income tax purposes will be sent to them in early 1996.
Shareholders may wish to consult a tax advisor on how to report distributions
for state and local purposes.
Fortis Advantage Asset Allocation Portfolio and Fortis Capital Fund paid income
distributions, taxable as dividend income, of which 4.41% and 91.44% qualified
for deduction by corporations. Detailed below are the per share distributions
made for the fiscal period ended August 31, 1995. All of the capital gains
distributions per share were from long term capital gains.
FORTIS ADVANTAGE ASSET ALLOCATION PORTFOLIO
Ordinary Income Per Share
<TABLE>
<CAPTION>
RECORD DATE CLASS A CLASS B* CLASS C* CLASS H*
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------
December 16, 1994 $0.145 $0.140 $0.140 $0.140
March 20, 1995 0.120 0.110 0.110 0.110
June 19, 1995 0.130 0.115 0.115 0.115
- -------------------------------------------------------------------------------------------
Total Distributions $0.395 $0.365 $0.365 $0.365
- -------------------------------------------------------------------------------------------
Long-Term Capital Gain Per Share
December 16, 1994 $0.0896 $0.0896 $0.0896 $0.0896
- -------------------------------------------------------------------------------------------
</TABLE>
FORTIS CAPITAL FUND
Ordinary Income Per Share
<TABLE>
<CAPTION>
RECORD DATE CLASS A CLASS B* CLASS C* CLASS H*
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------
September 12, 1994 $0.010 $ -- $ -- $ --
December 12, 1994 0.029 0.020 0.020 0.020
March 13, 1995 0.025 0.005 0.005 0.005
June 13, 1995 0.015 -- -- --
- -------------------------------------------------------------------------------------------
Total Distributions $0.079 $0.025 $0.025 $0.025
- -------------------------------------------------------------------------------------------
Long-Term Capital Gain Per Share
December 12, 1994 $0.7637 $0.7637 $0.7637 $0.7637
- -------------------------------------------------------------------------------------------
</TABLE>
FORTIS FIDUCIARY FUND
Long-Term Capital Gain Per Share
<TABLE>
<CAPTION>
RECORD DATE CLASS A CLASS B* CLASS C* CLASS H*
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------
December 16, 1994 $1.2110 $1.2110 $1.2110 $1.2110
- -------------------------------------------------------------------------------------------
</TABLE>
FORTIS GROWTH FUND
Long-Term Capital Gain Per Share
<TABLE>
<CAPTION>
RECORD DATE CLASS A CLASS B* CLASS C* CLASS H*
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------
December 16, 1994 $0.4951 $0.4951 $0.4951 $0.4951
- -------------------------------------------------------------------------------------------
</TABLE>
* Period from November 14, 1994 (initial offering of shares) to August 31, 1995.
35
<PAGE>
<TABLE>
<CAPTION>
DIRECTORS
<S> <C>
RICHARD W. CUTTING EDWARD M. MAHONEY
CPA and Financial Prior to January, 1995,
Consultant Chairman and Chief
ALLEN R. FREEDMAN Executive Officer
Chairman and Chief Fortis Advisers, Inc.
Executive Officer Fortis Investors, Inc.
Fortis, Inc.; THOMAS R. PELLETT
Managing Director of Prior to January, 1991,
Fortis International, N.V. Senior Vice
DR. ROBERT M. GAVIN President-Administration
President and Corporate Affairs
Macalester College and Director
BENJAMIN S. JAFFRAY Pet, Inc.
Chairman ROBB L. PRINCE
Sheffield Group, Ltd. Prior to July, 1995,
JEAN L. KING Vice President and
President Treasurer
Communi-King Jostens, Inc.
DEAN C. KOPPERUD LEONARD J. SANTOW
Chief Executive Officer Principal
and Director Griggs & Santow, Inc.
Fortis Advisers, Inc. JOSEPH M. WIKLER
President and Director Investment Consultant and
Fortis Investors, Inc. Private Investor
Senior Vice President and Prior to January, 1994,
Director of Fortis Benefits Director of Research,
Insurance Company Chief Investment Officer,
Senior Vice President of Principal, and Director
Time Insurance The Rothschild Co.
Company
</TABLE>
<TABLE>
<S> <C>
OFFICERS
DEAN C. KOPPERUD DENNIS M. OTT
President and Director Vice President
ROBERT W. BELTZ, JR. DAVID A. PETERSON
Vice President Vice President
JAMES S. BYRD NICHOLAS L. M. DE PEYSTER
Vice President Vice President
CHARLES J. DUDLEY STEPHEN M. POLING
Vice President Vice President
THOMAS D. GUALDONI STEPHEN M. RICKERT
Vice President Vice President
MAROUN M. HAYEK RICHARD P. ROCHE
Vice President Vice President
HOWARD G. HUDSON ANTHONY J. ROTONDI
Vice President Vice President
ROBERT C. LINDBERG KEITH R. THOMSON
Vice President Vice President
LARRY A. MEDIN CHRISTOPHER J. WOODS
Vice President Vice President
KEVIN J. MICHELS GARY N. YALEN
Vice President Vice President
JON H. NICHOLSON MICHAEL J. RADMER
Vice President Secretary
JOHN W. NORTON TAMARA L. FAGELY
Vice President Treasurer
FRED OBSER
Vice President
</TABLE>
<TABLE>
<S> <C> <C> <C>
INVESTMENT MANAGER, CUSTODIAN
REGISTRAR AND Norwest Bank
TRANSFER AGENT Minnesota, N.A.
Fortis Advisers, Inc. Minneapolis, Minnesota
Box 64284 GENERAL COUNSEL
St. Paul, Minnesota 55164 Dorsey & Whitney P.L.L.P.
PRINCIPAL UNDERWRITER Minneapolis, Minnesota
Fortis Investors, Inc. INDEPENDENT AUDITORS
Box 64284 KPMG Peat Marwick LLP
St. Paul, Minnesota 55164 Minneapolis, Minnesota
</TABLE>
THE USE OF THIS MATERIAL IS AUTHORIZED ONLY WHEN PRECEDED OR ACCOMPANIED BY A
PROSPECTUS.
36
<PAGE>
FORTIS FINANCIAL GROUP
Fortis Financial Group (FFG) is a premier provider of insurance and
investment portfolios whose fund manager, Fortis Advisers, Inc. has established
a nation wide reputation for money management. Through Fortis Investors, Inc.,
FFG offers mutual funds, annuities and variable universal life insurance. Life
and disability products are issued and underwritten by Time Insurance Company
and Fortis Benefits Insurance Company.
With more than $5 billion assets under management, FFG is part of
Fortis, a $100 billion worldwide financial services and insurance organization
represented in 11 countries.
Like the Fortis name, which comes from the Latin for steadfast, our focus
is on the long-term in all we do: the relationships we build, the performance we
seek, the service we provide and the products we offer.
[LOGO]
----------------
Bulk Rate
FORTIS FINANCIAL GROUP US Postage
P.O. Box 64284
St. Paul, MN 55164 PAID
Permit No. 3794
Minneapolis, MN
------------------
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98144 (Ed. 10/95)
