TO THE SHAREHOLDERS OF FORTIS MUTUAL FUNDS:
Fortis Advisers, Inc. ("Advisers"), is pleased to
announce to the shareholders of the Fortis mutual funds
that on August 1, 1995, Advisers' parent company,
Fortis, Inc., integrated its two money management
organizations. Fortis Asset Management ("FAM"), which
has provided investment management services to the
various insurance subsidiaries of Fortis, Inc. since
1982, has joined forces with Advisers, the investment
adviser of the Fortis mutual funds since 1949.
Specifically, the integration brings FAM's well-versed
approach to U.S. short- and long-term fixed income
investing and a value approach to managing equities to
Advisers' long-established growth-oriented equity
department. As a result, Advisers will have almost $9
billion in assets under management and will provide
greater investment depth and experience to the
shareholders of the Fortis mutual funds, without any
change in the stated investment objectives and policies
of the funds. Advisers will continue to serve as the
Fortis mutual funds' investment adviser, transfer agent
and dividend agent.
Due to the integration, the descriptions of the
individuals involved in managing the following Fortis
fixed income funds have been modified as descussed
below. The individuals involved in managing the Fortis
equity funds have not changed.
FORTIS ADVANTAGE PORTFOLIOS, INC.
High Yield Portfolio
Asset Allocation Portfolio
Government Total Return Portfolio
Supplement dated August 1, 1995 to page 17 of the
Prospectus dated March 1, 1995
Dennis M. Ott, who has managed the High Yield Portfolio
since 1988, together with Howard G. Hudson, Robert C.
Lindberg and Stephen M. Rickert manage the Portfolio.
Stephen M. Poling and Mr. Ott, who have managed the
Asset Allocation Portfolio since 1988, together with Mr.
Hudson and Maroun M. Hayek manage the Portfolio.
Mr. Ott, who has managed the Government Total Return
Portfolio since 1991, together with Messrs. Hudson and
Hayek and Christopher J. Woods manage the Portfolio.
From 1989 to 1991, the Portfolio was managed by Furman
Selz Capital Management.
FORTIS INCOME PORTFOLIOS, INC.
U.S. Government Securities Fund
Supplement dated August 1, 1995 to page 7 of the
Prospectus dated November 14, 1994
Dennis M. Ott, who has managed the Fund for at least the
past five years, together with Howard G. Hudson,
Christopher J. Woods, and Maroun M. Hayek manage the
Fund.
(OVER)
FORTIS TAX-FREE PORTFOLIOS, INC.
Minnesota Portfolio
National Portfolio
New York Portfolio
Supplement dated August 1, 1995 to page 11 of the
Prospectus dated November 1, 1994
Dennis M. Ott and Robert C. Lindberg, who have
respectively managed the Portfolios since 1985 and 1993,
together with Howard G. Hudson, Maroun M. Hayek and David
C. Greenzang manage the Portfolios.
SPECIAL PORTFOLIOS, INC.
Cash Portfolio
Supplement dated August 1, 1995 to page 5 of the
Prospectus dated March 1, 1995
Dennis M. Ott, who has managed the Cash Portfolio since
1989, together with Howard G. Hudson, Maroun M. Hayek,
Robert C. Lindberg and David C. Greenzang manage the
Portfolio.
Where applicable, the following information is also
incorporated into each of the above-referenced
Prospectuses:
Mr. Hudson, an Executive Vice President of Fortis
Advisers, Inc. ("Advisers") has been managing debt
securities for Fortis, Inc., Advisers' parent company,
since 1991. Prior to that, Mr. Hudson was the head of
fixed income for the Trust and Investment Division of
Morgan Guaranty Trust. Mr. Hudson reports to Gary N.
Yalen, the President and Chief Investment Officer of
Advisers. Mr. Lindberg, a Vice President of Advisers,
has been managing debt securities for Advisers since
1993. Prior to that, Mr. Lindberg was Vice President and
Chief Securities Trader for COMERICA, Inc., Detroit,
Michigan. Mr. Rickert, a Senior Credit Analyst for
Advisers, has been involved in management of debt
securities for Fortis, Inc. since 1994. Prior to that,
Mr. Rickert was a corporate bond analyst for Dillon, Read
and before that Western Asset Management. Mr. Hayek, a
Vice President of Advisers, has been managing debt
securities for Fortis, Inc. since 1987. Mr. Woods, a
Vice President of Advisers, has been managing debt
securities for Fortis, Inc. since 1993. Prior to that,
Mr. Woods was the head of fixed income for The Police and
Firemen's Disability and Pension Fund of Ohio in
Columbus, Ohio. Mr. Greenzang, an Assistant Portfolio
Manager for Advisers, has been involved in management of
debt securities for Fortis, Inc. since 1992. Prior to
that, Mr. Greenzang was an Associate with Dean Witter
Reynolds, Inc. in New York, NY. Messrs. Yalen, Hudson,
Lindberg, Rickert, Hayek, Woods and Greenzang are located
in New York, N.Y. and Messrs. Poling and Ott are located
in Minneapolis, MN.
