File No. 2-78148
FISCAL YEAR END - SEPTEMBER 30
Registrant proposes that
this amendment will become effective:
60 days after filing
As of the filing date
As of July 31, 1995 X
Pursuant to Rule 485:
paragraph (a)
paragraph (b) X
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OF 1933 X
Post-Effective Amendment Number 17
and
REGISTRATION STATEMENT UNDER THE
INVESTMENT COMPANY ACT OF 1940 X
FORTIS TAX-FREE PORTFOLIOS, INC.
(Exact Name of Registrant as Specified in Charter)
500 Bielenberg Drive, Woodbury, Minnesota 55125
(Address of Principal Executive Offices)
Registrant's Telephone Number: (612) 738-4000
Gregory S. Swenson, Esq., Asst. Secretary
(Same address as above)
(Name and Address of Agent for Service)
Copy to:
Michael J. Radmer, Esq.
Dorsey & Whitney
2200 First Bank Place East
Minneapolis, MN 55402
Pursuant to Section 270.24f-2 of the Investment Company
Act of 1940, the Registrant has registered an indefinite
amount of securities under the Securities Act of 1933.
The Rule 24f-2 Notice for the Registrant's most recent
fiscal year was filed on August 30, 1994.
<PAGE>
FORTIS TAX-FREE PORTFOLIOS, INC.
Registration Statement on Form N-1A
CROSS REFERENCE SHEET
Pursuant to Rule 495(a) and Instruction F1 of Form N-1A
N-1A
Item No.
PART A (PROSPECTUS) PROSPECTUS HEADING
1. Cover Page Cover Page
(no caption)
2. Synopsis (optional) (not included)
3. Condensed Financial Information FINANCIAL
HIGHLIGHTS
4. General Description of Registrant ORGANIZATION
AND CLASSIFICATION
5. Management of the Fund MANAGEMENT
6. Capital Stock and Other Securities CAPITAL
STOCK; SHAREHOLDER INQUIRIES;
DIVIDENDS AND CAPITAL GAINS
DISTRIBUTIONS; TAXATION
7. Purchase of Securities Being Offered HOW TO BUY
FUND SHARES
8. Redemption or Repurchase REDEMPTION
9. Pending Legal Proceedings None
PART B STATEMENT OF
STATEMENT OF ADDITIONAL ADDITIONAL
INFORMATION INFORMATION
HEADING
10. Cover Page Cover Page
(no caption)
11. Table of Contents TABLE OF
CONTENTS
12. General Information and History ORGANIZATION
AND CLASSIFICATION
13. Investment Objectives and Policies INVESTMENT
OBJECTIVES
AND POLICIES
14. Management of the Fund DIRECTORS
AND EXECUTIVE OFFICERS
15. Control Persons and Principal
Holders of Securities CAPITAL
STOCK
16. Investment Advisory and Other Services INVESTMENT
ADVISORY AND OTHER SERVICES
17. Brokerage Allocation PORTFOLIO TRANSACTIONS
AND ALLOCATION OF BROKERAGE
18. Capital Stock and Other Securities CAPITAL
STOCK
19. Purchase, Redemption, and Pricing of
Securities Being Offered COMPUTATION
OF NET ASSET VALUE PRICING;
SPECIAL PURCHASE PLANS;
REDEMPTION
20. Tax Status TAXATION
21. Underwriters UNDERWRITER
22. Calculations of Performance Date PERFORMANCE
23. Financial Statements FINANCIAL
STATEMENTS
PART A
PROSPECTUS
Incorporated by reference to Part A of Post-Effective
Amendment Number 16 to Registrant's Registration
Statement, filed with the SEC on November 1, 1994.
PART B
STATEMENT OF ADDITIONAL INFORMATION
Incorporated by reference to Part B of Post-Effective
Amendment Number 16 to Registrant's Registration
Statement, filed with the SEC on November 1, 1994.
PART C
OTHER INFORMATION
Incorporated by reference to Part C of Post Effective
Amendment Number 16 to Registrant's Registration
Statement, filed with the SEC on November 1, 1994. In
addition, the following Item 24(b)(18) is filed herewith:
Item 24(b)(18) copies of any plan entered into by
Registrant pursuant to Rule 18f-3 under the 1940 Act, any
agreement with any person relating to the implementation
of a plan, any amendment to a plan or agreement, and a
copy of the portion of the minutes of a meeting of the
Registrant's directors describing any action taken to
revoke a plan.
Attached.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of
1933, the Registrant certifies that it meets all of the
requirements for effectiveness of this Registration
Statement pursuant to Rule 485(b) under the Securities
Act of 1933 and has duly caused this Post-Effective
Amendment to its Registration Statement to be signed on
its behalf by the undersigned, thereunto duly authorized,
in the City of Woodbury, State of Minnesota, on July 31,
1995.
Fortis Tax-Free Portfolios, Inc.
By:
Dean C. Kopperud, President
Pursuant to the requirements of the Securities Act of
1933, this Post-Effective Amendment to Registration
Statement has been signed below by the following persons
in the capacities and on the dates shown.
Signature and Title
Dated July 31, 1995
Dean C. Kopperud, President
(principal executive officer)
Dated July 31, 1995
Tamara L. Fagely, Treasurer
(principal financial and accounting officer)
Richard W. Cutting*
Director
Allen R. Freedman*
Director
Robert M. Gavin*
Director
Benjamin S. Jaffray*
Director
Jean L. King*
Director
Edward M. Mahoney*
Director
Thomas R. Pellett*
Director
Robb L. Prince* Dean C. Kopperud, Pro-Se
Director and Attorney-in-Fact
Dated: July 31, 1995
Leonard J. Santow*
Director
Joseph M. Wikler*
Director
*Registrant's directors executing Power of Attorney dated
March 31, 1995
FORTIS ADVISERS, INC.
AND
FORTIS INVESTORS, INC.'S
MULTIPLE CLASS SHARES PLAN FOR :
FORTIS ADVANTAGE PORTFOLIOS, INC.
FORTIS EQUITY PORTFOLIOS, INC.
FORTIS FIDUCIARY PORTFOLIOS, INC.
FORTIS GROWTH FUND, INC.
FORTIS INCOME PORTFOLIOS, INC.
FORTIS MONEY PORTFOLIOS, INC.
FORTIS TAX-FREE PORTFOLIOS, INC.
FORTIS WORLDWIDE PORTFOLIOS, INC
July 28, 1995
<PAGE>
Multiple Class Shares Plan for Fortis Funds
I. Introduction
This Multiple Class Shares Plan (the "Plan") for the
Fortis Funds (the "Funds") has been prepared to provide
the Funds' Boards of Directors with an overview of the
multiple class structure that Fortis Advisers, Inc. and
Fortis Investors, Inc. implemented for the Funds on
November 14, 1994. In addition, this document fulfills
the requirements of SEC Rule 18f-3(d), promulgated under
the Investment Company Act of 1940, that provides for the
creation and maintenance of a multiple class shares
structure without the necessity of an SEC Exemptive
Order.
Pursuant to Rule 18f-3(d), this document sets forth the
separate arrangements, characteristics, and expense
allocations for each class and all related conversion
features and exchange privileges, thus providing the
framework for the Funds' multiple class structure. In
addition, the Boards' responsibilities with respect to
the multiple class shares program are set forth. Any
material amendments to the Plan will be presented to the
Boards for their approval.
II. Background
The Funds' multiple class program became effective on
November 14, 1994 pursuant to: (i) Board approval of the
program received on June 28, 1994; (ii) an SEC Exemptive
Order dated June 21, 1994; and (iii) an IRS Private
Letter Ruling dated May 10, 1994. With the
effectiveness of Rule 18f-3 in early 1995, fund groups
operating with a multiple class share structure pursuant
to an SEC Exemptive Order are given the option to
continue to operate under the Exemptive Order or elect to
comply with the provisions of Rule 18f-3. At the Boards'
June 27, 1995 meeting the Directors approved the Funds'
election to operate under Rule 18f-3 effective on such
date as Fund management selected. Fund management
selected July 31, 1995.
In light of the fact that the Funds' multiple class
program has not been materially modified since its
approval on June 28, 1994 and amendment on December 8,
1994, all that is necessary to effectuate the transition
to Rule 18f-3 is the creation of this Plan and filing it
with the SEC as an exhibit to the Funds' registration
statement. No additional Board approvals are necessary.
III. Multiple Class Shares Structure
The Funds' multiple class shares program allows an
investor to select not only the Fund that has an
investment objective that best suits his or her
investment needs, but also the most appropriate
distribution method. Specifically, the investor is able
to choose a method of purchasing shares that the investor
believes is most beneficial given the amount of the
investment, length of time the investor expects to hold
his or her shares and other relevant circumstances. The
investor's choice of a class also determines how the
investor's sales representative will be compensated on
that sale of shares.
Rule 18f-3 authorizes the Board to create additional
classes of shares that are tailored to particular
customers, distribution channels and shareholder
servicing arrangements. This flexibility will allow the
Funds to quickly adapt to future changes in the
marketplace.
A. Class Specifications
The multiple class shares program consists of five
classes of shares. Generally, the characteristics of
each class are laid out in the following chart:
<TABLE>
<CAPTION>
FORTIS FUNDS
Multiple Class Structure
<S> <C> <C> <C> <C>
CLASS A*/** B/H*** C E**/****
Front End
Sales Charge 4.5%-4.75% None None 4.%%
(None on Money Fund)
Dealer Concession 4.0% 4.0% 1.0% 4.0%
5.25% on H
CDSC None 4%, 4%, 3% 1%/ None
3%, 2%, 1% 1 Year
(6 Years)*****
Conversion to A N/A Year 9 None N/A
Total 12b-1 .20%-.45% 1.0% 1.0% None
Trail Commission .20%-.45% .25% 1.0% None
No Trail Year 2+
On H
</TABLE>
* Includes a class of shares for new purchasers of
USG and/or Tax-Free that has a .25% 12b-1 fee.
** The Million Dollar NAV Program, which predates
the multiple class shares program, remains intact.
However, it only applies to purchases of Class A and
Class E shares.
*** Class B is identical to Class H in all respects
except Class H has a 5.25% dealer concession with no
trail commission compared to a 4% dealer concession and
a .25% trail commission on Class B shares. From time to
time, at Investors' sole discretion, the concession on
Class H may be uniformly increased to 5.50%.
**** Class E is available for USG and Tax-Free only.
This class has no 12b-1 fee and is designed for
additional purchases and reinvestment of
dividends/capital gains by USG and Tax-Free shareholders
of record on November 13, 1994.
***** With respect to Class B and H shares only, the
CDSC does not apply to an amount that represents, on an
annual (non-cumulative) basis, up to 10% of the amount
(at the time of the investment) of a shareholder's
purchases. On all classes the CDSC does not apply to
amounts representing an increase in share value due to
capital appreciation and shares acquired through the
reinvestment of dividends or capital gains distributions.
In addition, the CDSC is waived in the event of a
shareholder's death or disability.
The specifics as to how each Fund has implemented the
multiple class structure and the characteristics of each
Fund's classes are set forth in Exhibit A.
As referenced in the preceding chart and Exhibit A, the
multiple class structure for USG and the Tax-Free
Portfolios is somewhat different than for the other
Funds. The other Funds each have four classes of shares:
Class A, Class B, Class H, and Class C. USG and the Tax-
Free Portfolios have an additional class of shares (Class
E) due to the fact that at the time the multiple class
shares program was implemented they were the only Funds
whose shareholders were not assessed a Rule 12b-1 fee. In
light of this fact, and recognizing that in order to
remain viable and competitive, future sales of these
Funds' shares must provide an ongoing trail commission to
the sales force funded by a Rule 12b-1 fee, it was
determined that in the interest of fairness and as a
reward for their loyalty to these Funds, the USG and
Tax-Free shareholders of record on November 13, 1994
should not be asked to incur a Rule 12b-1 fee. Class E
was developed for these shareholders and it will not be
subject to any Rule 12b-1 fee (unless a Rule 12b-1 plan
is subsequently adopted by the Class E shareholders).
Class E shareholders are allowed to obtain additional
Class E shares of their Funds through reinvestment of
dividends and capital gains and/or additional purchases.
Other individuals seeking to purchase shares of these
Funds with a front end sales charge have to purchase
Class A shares that are subject to a .25% 12b-1 fee that
funds a .25% trail commission.
B. Exchanges
With respect to exchanges of shares, the general rule
under the multiple class shares program is that Fund
shares of one class can only be exchanged for shares of
the same class of another Fund. For example, the holder
of Class A shares of Growth Fund is allowed to exchange
those shares for Class A shares of the Fiduciary Fund or
any other Fund. However, that shareholder is not
allowed to exchange his or her Class A Growth Fund shares
for Class B, Class H, or Class C shares of Fiduciary
Fund, Growth Fund or any other Fund.
There are two exceptions to the general rule concerning
exchanges. First, Class E shareholders may only exchange
their shares for Class A shares of another Fund.
However, they will be allowed to move back into Class E
of their original Fund through an exchange.
The second exception relates to Money Fund. New purchases
of Money Fund are only allowed into Class A. However,
Class A Money Fund shareholders are allowed to exchange
their shares (using the systematic investment/dollar cost
averaging mechanism or otherwise) for Class A shares of
any of the other Funds (in which case a front end sales
charge is imposed) or for shares of the other available
classes (not subject to a front end sales charge, but
subject to a CDSC). Once Class A Money Fund shares have
been exchanged into Class B, Class H or Class C shares of
another fund, they cannot be exchanged back for Class A
Money Fund shares. However, each class of shares has a
corresponding Money Fund class (i.e., Class A, Class B,
Class H and Class C) that allows shareholders of that
class to exchange their shares back and forth into Money
Fund. For example, Class B shareholders of Growth Fund
could exchange their shares for Class B shares of Money
Fund and then exchange back for Class B shares of Growth
Fund or Class B shares of any other Fund.
C. Conversions
As the multiple class shares structure is presently
structured, the only conversion that takes place is the
conversion of Class B and Class H shares (except those
purchased by reinvestment of dividends and other
distributions paid on those shares) to Class A shares on
the ninth anniversary of the purchase of those shares.
Shares of these classes purchased through the
reinvestment of dividends and other distributions paid on
such shares are, for purposes of conversion, considered
to be held in a separate sub-account. Each time any
Class B or Class H shares convert to Class A, a
proportionate number of the shares of the same class in
the sub-account converts to Class A.
D. Compliance Guidelines
Investors has adopted compliance standards for the sale
of Fortis Funds and requires that all persons selling
Fortis Funds agree to abide by these standards.
Generally, these standards are based on the following
principles:
1. If the investor intends his or her investment
to be a long-term investment, he or she should
invest in Class A shares.
2. A long-term investor should not invest in Class
C.
3. Any investor who is eligible for an exemption
from the sales charge (i.e., they may purchase
Fund shares at net asset value) should invest
in Class A shares.
4. While Class A shares have no maximum order,
Class B and H shares have a $500,000 maximum
and Class C shares have a $1,000,000 maximum.
Orders greater than these limits are treated as
orders for Class A shares.
IV. Allocation of Expenses
Under the multiple class shares program, Fund-Level
expenses are allocated to the various classes based upon
the relative net assets held by each class. For Class-
Level expenses, each Class is allocated the amount of
that expense actually incurred by the Class.
Specifically, expenses are allocated as follows:
_______________________________________________________
Type of Expense Allocation
Direct Shareholder Expenses:
InvestmentAdvisory & Management Fees Fund-Level
12b-1 Fees Class-Level
Operating Expenses:
Director Fees & Expenses Fund-Level
Directors' Travel & Expenses Fund-Level
Legal Fees & Expenses Fund-Level
Audit Fees Fund-Level
Custodian Fees Fund-Level
Insurance, Errors & Omissions Fund-Level
Dues Fund-Level
Expense Limitation Fund-Level
Registration & Filing Fees Class-Level
SEC Class-Level
Blue Sky (State) Fund-Level
Mailing& Postage-Reports, Prospectuses Fund-Level
Printing-Reports Fund-Level
Mailing & Postage-Proxy Fund-Level
Printing-Proxy Fund-Level
Money Fund-specific Class-Level
transfer agent expenses
(e.g. check writing and
postage for confirmations)
_______________________________________________________
The foregoing methodology for the allocation of expenses
has been reviewed and approved by the Board of each Fund.
Any subsequent changes to the allocation methodology must
similarly be reviewed and approved by the Board of each
Fund. However, under Rule 18f-3, the Boards' approval of
the Plan constitutes an approval of the included
allocation of expenses.
The Board of each Fund receives and reviews, at least
quarterly, a written report of the Fund's expenses. In
its review of these reports the Directors should continue
to keep in mind that the IRS issued a Private Letter
Ruling relating to the Fund's multiple class structure at
least partially on the basis of a representation by the
Funds that the allocation of class expenses, excluding
12b-1 fees, will not cause a differential of 50 basis
points or more among the per share distribution of a
Fund's classes.
On a related basis, the Boards also receive quarterly and
annual statements concerning, as applicable, distribution
and shareholders' servicing expenditures under the Funds'
Rule 12b-1 plans. These statements, including the
allocations upon which they are based, are presented for
approval by the Directors in the exercise of their
fiduciary duties.
V. Board Responsibilities
The responsibilities of the Board of Directors under the
multiple class shares program and Rule 18f-3 are as
follows:
a. Board approvals:
As discussed earlier, the Board of each Fund must
approve all material amendments to the Plan.
Specifically, this approval requires the vote of a
majority of each Fund's Directors and a majority of
each Fund's non-interested Directors. In order to
approve the amended Plan, the Board of each Fund
must find that the amended Plan, including the
expense allocation, is in the best interest of each
class individually and the Fund as a whole. Before
any vote on the Plan, the Directors are obligated
to request and evaluate, and any agreement relating
to a class arrangement shall require the parties
thereto to furnish, such information as may be
reasonably necessary to evaluate the Plan.
b. Monitoring for Conflicts of Interest:
On an ongoing basis, and pursuant to their
fiduciary responsibility under the 1940 Act, the
Directors monitor the Funds for the existence of
any material conflicts between the interests of the
shareholders of different classes. If such a
conflict arises, the Boards, including a majority
of the independent directors, will take such action
as is reasonably necessary to eliminate the
conflict. Fortis Advisers, Inc. ("Advisers") and
Fortis Investors, Inc. ("Investors") have agreed
that they will be responsible for reporting any
potential or existing conflicts to the directors.
If a conflict among classes arises, Advisers and
Investors will remedy such conflict at their own
expense, up to and including establishing a new
registered management investment company.
c. Approval of Rule 12b-1 Plans:
The implementation of the multiple class shares
program has not altered the requirement under Rule
12b-1 that the Board annually approve each Fund's
12b-1 Plans and their related agreements.
d. Dividend Rate Approval:
The dividend setting committee of the Board of
Directors will be responsible for approving the
daily and other periodic dividend rates.
VI. Conclusion
The foregoing information provides an overview of the
Fortis Funds' multiple class structure. In addition,
this document provides the Directors with an outline of
their duties in monitoring the class shares program.
Therefore, it is suggested that each Director retain this
document for use in connection with their future
responsibilities with regard to the multiple class shares
program.<PAGE>
EXHIBIT A
FUND BY FUND SPECIFICATIONS OF THE
FORTIS MULTIPLE CLASS SHARES STRUCTURE<PAGE>
FORTIS ADVANTAGE PORTFOLIOS, INC.
Asset Allocation Portfolio
Capital Appreciation Portfolio
High Yield Portfolio
Government Total Return Portfolio
Summary: Each Advantage Portfolio will have four
classes of shares: Class A, Class B,
Class H, and Class C.
Specifics: The Multiple Class Shares Structure for
the four portfolios of this Fund is,
except to the extent indicated below,
identical.
CLASS A SHARES
Front End Sales Charge ("FESC"): 4.5% (With breakpoints
on sales of $100,000 or more)
Dealer Concession: 4.0% (Which decreases on sales of
$1,000,000 or more)
Contingent Deferred Sales Charge: None (Except for sales
of $1,000,000 or more, ("CDSC"):
which are subject to a CDSC, but
not a FESC - the "Million Dollar
NAV Program")
Conversion to Class A: Not Applicable
Total 12b-1 Fees: Asset Allocation Portfolio .45%
Capital Appreciation Portfolio .45%
High Yield Portfolio .35%
Government Total Return Portfolio .35%
Trail Commission: Asset Allocation Portfolio .25% (.45%*)
Capital Appreciation Portfolio .25% (.45%*)
High Yield Portfolio .25% (.35%*)
Government Total Return Portfolio .25% (.35%*)
* The higher Trail Commission amount is paid when the
aggregate current value of the portfolio accounts for the
Dealer's customers exceeds $1,000,000.
CLASS B/CLASS H SHARES
Except where indicated below, the characteristics of
Class B shares are identical to the characteristics of
Class H shares.
FESC: None
Dealer Concession: 4.0% (5-1/4% on Class H)
CDSC: 4%, 4%, 3%, 3%, 2%, 1% (6 years)
Conversion to Class A: Year 9
Total 12b-1 Fees: 1.0%
Trail Commission: .25% (No Trail Commission
on Class H shares)
CLASS C SHARES
FESC: None
Dealer Concession: 1.0%
CDSC: 1% for 1 year
Conversion to A: None
Total 12b-1 Fees: 1.0%
Trail Commission: 1.0% (Beginning in
Year 2)
FORTIS EQUITY PORTFOLIOS, INC.
Fortis Capital Fund
Summary: Fortis Capital Fund will have four classes of
shares: Class A, Class B, Class H and Class
C.
Specifics:
CLASS A SHARES
FESC: 4.75% (With breakpoints on
sales of $100,000 or more)
Dealer Concession: 4.0% (Which decreases on
sales of $1,000,000 or more)
CDSC: None (Except for sales of
$1,000,000 or more, which
are subject to a CDSC but
not a FESC - the "Million
Dollar NAV Program")
Conversion to Class A: Not Applicable
Total 12b-1 Fees: .25%
Trail Commission: .25%
CLASS B/CLASS H SHARES
Except where indicated below, the characteristics of
Class B shares are identical to the characteristics of
Class H shares.
FESC: None
Dealer Concession: 4.0% (5-1/4% on Class H)
CDSC: 4%, 4%, 3%, 3%, 2%, 1% (6
years)
Conversion to Class A: Year 9
Total 12b-1 Fees: 1.0%
Trail Commission: .25% (No Trail
Commission on Class H shares)
CLASS C SHARES
FESC: None
Dealer Concession: 1.0%
CDSC: 1% for 1 year
Conversion to A: None
Total 12b-1 Fees: 1.0%
Trail Commission: 1.0% (Beginning in
Year 2)
FORTIS FIDUCIARY FUND, INC.
Summary: Fortis Fiduciary Fund will have four classes
of shares: Class A, Class B, Class H and
Class C.
Specifics:
CLASS A SHARES
FESC: 4.75% (With breakpoints on
sales of $100,000 or more)
Dealer Concession: 4.0% (Which decreases on
sales of $1,000,000 or more)
CDSC: None (Except for sales of
$1,000,000 or more, which
are subject to a CDSC but
not a FESC - the "Million
Dollar NAV Program")
Conversion to Class A: Not Applicable
Total 12b-1 Fees: .25%
Trail Commission: .25%
CLASS B/CLASS H SHARES
Except where indicated below, the characteristics of
Class B shares are identical to the characteristics of
Class H shares.
FESC: None
Dealer Concession: 4.0% (5-1/4% on Class H)
CDSC: 4%, 4%, 3%, 3%, 2%, 1% (6
years)
Conversion to Class A: Year 9
Total 12b-1 Fees: 1.0%
Trail Commission: .25% (No Trail
Commission on Class H shares)
CLASS C SHARES
FESC: None
Dealer Concession: 1.0%
CDSC: 1% for 1 year
Conversion to A: None
Total 12b-1 Fees: 1.0%
Trail Commission: 1.0% (Beginning in
Year 2)
FORTIS GROWTH FUND, INC.
Summary: Fortis Growth Fund will have four classes of
shares: Class A, Class B, Class H, Class C.
Specifics:
CLASS A SHARES
FESC: 4.75% (With breakpoints
on sales of $100,000 or more)
Dealer Concession: 4.0% (Which decreases on
sales of $1,000,000 or more)
CDSC: None (Except for sales of
$1,000,000 or more, which
are subject to a CDSC but
not a FESC - the "Million
Dollar NAV Program")
Conversion to Class A: Not Applicable
Total 12b-1 Fees: .25%
Trail Commission: .25%
CLASS B/CLASS H SHARES
Except where indicated below, the characteristics of
Class B shares are identical to the characteristics of
Class H shares.
FESC: None
Dealer Concession: 4.0% (5-1/4% on Class H)
CDSC: 4%, 4%, 3%, 3%, 2%, 1% (6
years)
Conversion to Class A: Year 9
Total 12b-1 Fees: 1.0%
Trail Commission: .25% (No Trail
Commission on Class H shares)
CLASS C SHARES
FESC: None
Dealer Concession: 1.0%
CDSC: 1% for 1 year
Conversion to A: None
Total 12b-1 Fees: 1.0%
Trail Commission: 1.0% (Beginning in
Year 2)
FORTIS INCOME PORTFOLIOS, INC.
Fortis U.S. Government Securities Fund
Summary: Fortis U.S. Government Securities Fund will
have 5 classes of shares: Class A, Class B,
Class H, Class C and Class E.
Specifics:
CLASS A SHARES
FESC: 4.5% (With breakpoints on
sales of $100,000 or more)
Dealer Concession: 4.0% (Which decreases on
sales of $1,000,000 or more)
CDSC: None (Except for sales of
$1,000,000 or more, which
are subject to a CDSC but
not a FESC - the "Million
Dollar NAV Program")
Conversion to Class A: Not Applicable
Total 12b-1 Fees: .25%
Trail Commission: .25%
CLASS B/CLASS H SHARES
Except where indicated below, the characteristics of
Class B shares are identical to the characteristics of
Class H shares.
FESC: None
Dealer Concession: 4.0% (5-1/4% on Class H)
CDSC: 4%, 4%, 3%, 3%, 2%, 1% (6
years)
Conversion to Class A: Year 9
Total 12b-1 Fees: 1.0%
Trail Commission: .25% (No Trail
Commission on Class H shares)
CLASS C SHARES
FESC: None
Dealer Concession: 1.0%
CDSC: 1% for 1 year
Conversion to A: None
Total 12b-1 Fees: 1.0%
Trail Commission: 1.0% (Beginning in
Year 2)
CLASS E SHARES
FESC: 4.5% (With breakpoints on
sales of $100,000 or more)
Dealer Concession: 4.0% (Which decreases on
sales of $1,000,000 or more)
CDSC: None (Except for sales of
$1,000,000 or more, which
are subject to a CDSC,
but not a FESC - the
"Million Dollar NAV
Program")
Conversion to Class A: Not Applicable
Total 12b-1 Fees: None
Trail Commission: None
FORTIS MONEY PORTFOLIOS, INC.
Fortis Money Fund
Summary: Fortis Money Fund will have four classes of
shares: Class A, Class B, Class H and Class
C.
Specifics:
CLASS A SHARES
FESC: None
Dealer Concession: None
CDSC: None
Conversion to Class A: Not Applicable
Total 12b-1 Fees: .20%
Trail Commission: .20%
CLASS B/CLASS H SHARES
Except where indicated below, the characteristics of
Class B shares are identical to the characteristics of
Class H shares.
FESC: None
Dealer Concession: 4.0% (5-1/4% on Class H)
CDSC: 4%, 4%, 3%, 3%, 2%, 1% (6
years)
Conversion to Class A: Year 9
Total 12b-1 Fees: 1.0%
Trail Commission: .25% (No Trail
Commission on Class H shares)
CLASS C SHARES
FESC: None
Dealer Concession: 1.0%
CDSC: 1% for 1 year
Conversion to A: None
Total 12b-1 Fees: 1.0%
Trail Commission: 1.0% (Beginning in
Year 2)
FORTIS TAX-FREE PORTFOLIOS, INC.
Minnesota Portfolio
National Portfolio
New York Portfolio
Summary: The Fortis Tax-Free Portfolios will have
five classes of shares: Class A, Class
B, Class H, Class C, and Class E.
Specifics:
CLASS A SHARES
FESC: 4.5% (With breakpoints on
sales of $100,000 or more)
Dealer Concession: 4.0% (Which decreases on
sales of $1,000,000 or more)
CDSC: None (Except for sales of
$1,000,000 or more, which
are subject to a CDSC but
not a FESC - the "Million
Dollar NAV Program")
Conversion to Class A: Not Applicable
Total 12b-1 Fees: .25%
Trail Commission: .25%
CLASS B/CLASS H SHARES
Except where indicated below, the characteristics of
Class B shares are identical to the characteristics of
Class H shares.
FESC: None
Dealer Concession: 4.0% (5-1/4% on Class H)
CDSC: 4%, 4%, 3%, 3%, 2%, 1% (6
years)
Conversion to Class A: Year 9
Total 12b-1 Fees: 1.0%
Trail Commission: .25% (No Trail
Commission on Class H shares)
CLASS C SHARES
FESC: None
Dealer Concession: 1.0%
CDSC: 1% for 1 year
Conversion to A: None
Total 12b-1 Fees: 1.0%
Trail Commission: 1.0% (Beginning in
Year 2)
CLASS E SHARES
FESC: 4.5% (With breakpoints on
sales of $100,000 or more)
Dealer Concession: 4.0% (Which decreases on
sales of $100,000 or more)
CDSC: None (Except for sales of
$1,000,000 or more, which
are subject to a CDSC,
but not a FESC - the
"Million Dollar NAV
Program")
Conversion to Class A: Not Applicable
Total 12b-1 Fees: None
Trail Commission: None
FORTIS WORLDWIDE PORTFOLIOS, INC.
Fortis Global Growth Portfolio
Summary: Fortis Global Growth Portfolio will have
four classes of shares: Class A, Class
B, Class H and Class C.
Specifics:
CLASS A SHARES
FESC: 4.75% (With breakpoints on
sales of $100,000 or more)
Dealer Concession: 4.0% (Which decreases on
sales of $1,000,000 or more)
CDSC: None (Except for sales of
$1,000,000 or more, which
are subject to a CDSC but
not a FESC - the "Million
Dollar NAV Program")
Conversion to Class A: Not Applicable
Total 12b-1 Fees: .25%
Trail Commission: .25%
CLASS B/CLASS H SHARES
Except where indicated below, the characteristics of
Class B shares are identical to the characteristics of
Class H shares.
FESC: None
Dealer Concession: 4.0% (5-1/4% on Class H)
CDSC: 4%, 4%, 3%, 3%, 2%, 1% (6
years)
Conversion to Class A: Year 9
Total 12b-1 Fees: 1.0%
Trail Commission: .25% (no Trail
Commission on Class H shares)
CLASS C SHARES
FESC: None
Dealer Concession: 1.0%
CDSC: 1% for 1 year
Conversion to A: None
Total 12b-1 Fees: 1.0%
Trail Commission: 1.0% (Beginning in
Year 2)
FORTIS TAX-FREE PORTFOLIOS, Inc.
POWER OF ATTORNEY TO SIGN AMENDMENTS TO REGISTRATION
STATEMENT
The undersigned, directors of FORTIS TAX-FREE PORTFOLIOS,
Inc.
(the "Company") hereby appoint Michael J. Radmer, John W.
Norton, and Dean C. Kopperud, or any one of them, as
attorneys-in-fact for the purpose of signing in their
names and on their behalf as directors of this Company
and filing with the Securities and Exchange Commission
any and all post-effective amendments to the Registration
Statement of Company on Form N-1A.
Dated: March 30, 1995
/s/ Richard W. Cutting, Director
/s/ Allen R. Freedman, Director
/s/ Robert M. Gavin, Director
/s/ Benjamin S. Jaffray, Director
/s/ Jean L. King, Director
/s/ Dean C. Kopperud, Director
/s/ Edward M. Mahoney, Director
/s/ Thomas R. Pellett, Director
/s/ Robb L. Prince, Director
/s/ Leonard J. Santow, Director
/s/ Joseph M. Wikler, Director
<PAGE>
