<PAGE>
[LOGO]
SOLID ANSWERS FOR A CHANGING WORLD-Registered Trademark-
[LOGO]
Series Fund
Semi-Annual Report
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Bringing you a world of opportunity
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June 30, 1996
Representing the portfolios of:
-- Masters Variable Annuity
-- Opportunity Fixed & Variable Annuity
-- Wall Street Series VUL 100, 220, & 500
<PAGE>
FORTIS SERIES FUND, INC.
SEMI-ANNUAL REPORT
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HIGHLIGHTS
<TABLE>
<CAPTION>
U.S. GLOBAL
MONEY GOVERNMENT DIVERSIFIED GLOBAL HIGH ASSET ASSET
MARKET SECURITIES INCOME BOND YIELD ALLOCATION ALLOCATION
SERIES SERIES SERIES SERIES SERIES SERIES SERIES
------ ---------- ----------- ------ ------ ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
FOR THE PERIOD ENDED JUNE 30, 1996:
NET ASSET VALUE PER SHARE:
Beginning of period............................. $10.83 $11.16 $12.20 $11.30 $ 9.74 $15.90 $11.42
End of period................................... $11.10 $10.91 $12.06 $10.99 $10.18 $16.63 $12.17
ACCUMULATION UNIT PERFORMANCE:
Fortis Opportunity Annuity/ Masters Variable
Annuity......................................... +1.84 % -2.90% -1.78% -3.29 % +3.81 % +3.88% +5.84%
Harmony Investment Life......................... +2.14 % -2.61% -1.49% -3.00 % +4.12 % +4.19% +6.15%
Wall Street Series 220/500...................... +1.93 % -2.82% -1.69% -3.20 % +3.91 % +3.98% +5.93%
<CAPTION>
VALUE
SERIES
----------
<S> <C>
FOR THE PERIOD ENDED JUNE 30, 1996:
NET ASSET VALUE PER SHARE:
Beginning of period............................. $10.27
End of period................................... $10.42
ACCUMULATION UNIT PERFORMANCE:
Fortis Opportunity Annuity/ Masters Variable
Annuity......................................... +1.31%
Harmony Investment Life......................... +1.39%
Wall Street Series 220/500...................... +1.33%
</TABLE>
<TABLE>
<CAPTION>
BLUE
GROWTH S&P 500 CHIP GLOBAL GROWTH INTERNATIONAL AGGRESSIVE
& INCOME INDEX STOCK GROWTH STOCK STOCK GROWTH
SERIES SERIES SERIES SERIES SERIES SERIES SERIES
-------- -------- -------- ------ ------ ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE PER SHARE:
Beginning of period............................. $12.83 $10.09 $10.07 $15.97 $28.09 $11.27 $12.68
End of period................................... $14.03 $10.37 $10.21 $18.98 $31.24 $12.18 $14.64
ACCUMULATION UNIT PERFORMANCE:
Fortis Opportunity Annuity/ Masters Variable
Annuity......................................... +8.62% +2.58% +1.13% +18.03% +10.47% +7.33% +14.75%
Harmony Investment Life......................... +8.94% +2.63% +1.28% +18.38% +10.80% +7.65% +15.09%
Wall Street Series 220/500...................... +8.72% +2.56% +1.21% +18.13% +10.57% +7.42% +14.85%
</TABLE>
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OPERATING EXPENSES:*
<TABLE>
<CAPTION>
U.S. GLOBAL
MONEY GOVERNMENT DIVERSIFIED GLOBAL HIGH ASSET ASSET
MARKET SECURITIES INCOME BOND YIELD ALLOCATION ALLOCATION
SERIES SERIES SERIES SERIES SERIES SERIES SERIES
------ ---------- ----------- ------ ------ ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
FOR THE PERIOD ENDED JUNE 30, 1996:
Investment Advisory and Management Fee............ .30% .46% .47% .75% .50% .48% .90%
Other Expenses.................................... .08% .07% .07% .30% .10% .05% .24%
------ --- --- ------ ------ --- -----
Total Fortis Series Operating Expenses............ .38% .53% .54% 1.05% .60% .53% 1.14%
------ --- --- ------ ------ --- -----
<CAPTION>
VALUE
SERIES
----------
<S> <C>
FOR THE PERIOD ENDED JUNE 30, 1996:
Investment Advisory and Management Fee............ .70%
Other Expenses.................................... .50%
-----
Total Fortis Series Operating Expenses............ 1.20%
-----
</TABLE>
<TABLE>
<CAPTION>
BLUE
GROWTH & S&P 500 CHIP GLOBAL GROWTH INTERNATIONAL AGGRESSIVE
INCOME INDEX STOCK GROWTH STOCK STOCK GROWTH
SERIES SERIES SERIES SERIES SERIES SERIES SERIES
-------- -------- -------- ------ ------ ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment Advisory and Management Fee............ .70% .40% .90% .70% .61% .85% .70%
Other Expenses.................................... .04% .19% .22% .07% .05% .30% .05%
--- --- -------- ------ ------ ----- ---
Total Fortis Series Operating Expenses............ .74% .59% 1.12% .77% .66% 1.15% .75%
--- --- -------- ------ ------ ----- ---
</TABLE>
* Represents the expenses of the series itself, without the expenses associated
with the variable annuities or variable universal life insurance policies.
<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 managers
and presidents provide 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
portfolios invests, and the pie
chart shows a breakdown of the
portfolios' assets by sector. The
portfolio changes show the
investment decisions your portfolio
manager has made over the period in
response to changing market
conditions.
The performance chart graphically
compares the portfolios' total
return performance with a selected
investment index. Remember, however,
that an index may reflect the
performance of securities the
portfolio may not hold. Also, the
index does not deduct investment
advisory fees and other fund
expenses, whereas your portfolio
does. Individuals cannot buy an
unmanaged index fund without
incurring some charges and expenses.
This report is just one of several
tools you can use to learn more
about your investment in the Fortis
Family of Products and Services.
Your investment representative, who
understands your personal financial
situation, can best explain the
features of your investment and how
it's designed to help you meet your
financial goals.
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<TABLE>
<S> <C>
CONTENTS
Letter to Shareholders 2
Schedules of Investments
Money Market Series 19
U.S. Government Securities Series 20
Diversified Income Series 22
Global Bond Series 26
High Yield Series 28
Asset Allocation Series 32
Global Asset Allocation Series 37
Value Series 41
Growth & Income Series 43
S&P 500 Series 45
Blue Chip Stock Series 50
Global Growth Series 53
Growth Stock Series 57
International Stock Series 59
Aggressive Growth Series 62
Statements of Assets and Liabilities 64
Statements of Operations 66
Statements of Changes in Net Assets 68
Notes to Financial Statements 71
Directors and Officers 84
Products and Services 85
</TABLE>
1
<PAGE>
Photo
FORTIS SERIES FUND, INC. SEMI-ANNUAL REPORT,
JUNE 30, 1996
DEAR SHAREHOLDER:
In today's fast-paced world, you deserve solid answers to your investment
questions, as well as investment companies with solid reputations and
performance. We at Fortis are proud to bring you these solid answers and
companies as part of your investment in a Fortis variable annuity or variable
universal life insurance policy.
When you chose this Fortis solution to help you achieve your financial needs and
goals, you entered a world that uniquely blends investment opportunity, tax
deferral and insurance protection. You trust us to manage your money with our
utmost in skill, knowledge and experience and we accept that charge with
confidence.
To further illustrate our ongoing commitment to you, we welcomed three new
investment selections on May 1. You now have access to 15 investment selections
and six experienced money management teams with the addition of the Value
Portfolio, S&P 500 Stock Index Portfolio and Blue Chip Stock Portfolio.
Of course, it's critical we keep you apprised of your investment's status.
Therefore, we offer the following pages of detail about each portfolio of the
Fortis Series Fund for the six-month investment period ended June 30, 1996.
FIXED INCOME ECONOMIC REVIEW AND OUTLOOK
Our fixed income investment strategy entering the year was based on our outlook
for a marginally expanding U.S. economy with meager inflationary pressure.
Despite the fact that interest rates were at or near their recent lows, the
economy was weak and the Federal Reserve appeared poised to lower short-term
interest rates for the third time in six months. Accordingly, we positioned our
portfolios to reflect our positive view on bonds.
Although the Fed lowered short-term interest rates on January 31, the
surprisingly strong February employment statistics released in early March
dramatically changed the interest rate outlook. According to the report, 705,000
new jobs were created during that month -- the largest increase in nearly nine
years. This payroll report had significant implications about the strength of
the economy and the outlook for interest rates.
The new economic data and the resulting market volatility led us in March to
take a neutral posture in our fixed income portfolios. This spring, we took a
slightly bearish stance and shortened durations believing that the continuing
strength in the U.S. economy would likely force the Federal Reserve to raise
short-term rates. At this time, we anticipate that higher interest rates will
eventually have a dampening effect on economic activity and inflation, providing
a more positive environment for bonds than has been the case over the last six
months.
EQUITY ECONOMIC REVIEW AND OUTLOOK
The overall performance of the world's financial markets during the first half
of 1996 was mixed. After a strong performance during calendar 1995, many of the
world's equity markets continued to demonstrate solid results. The performance
of the world's bond markets was less favorable due to rising long-term interest
rates in the United States. Financial markets have responded to stronger than
expected economic activity and signs of a tightening labor market in the United
States.
2
<PAGE>
In spite of these concerns, the equity markets generally performed well during
the first half of the year. Equity markets benefited by the strong net cash
flows into the mutual fund industry. Positive demographic trends and a lack of
investment options have focused investor attention on the equity segment of the
financial asset spectrum. Many individual investors have concluded that
investing in the equity market is the best way to achieve their longer term
financial goals.
We are cautiously optimistic on the outlook for the equity markets during the
second half of 1996. The primary areas of concern continue to be high relative
valuation levels, the increase in speculative activity, and a trend towards
slowing corporate earnings growth. 1996 is an election year in the U.S., and
this will add a degree of uncertainty to the future political and economic
outlook.
Overall, the longer term outlook remains favorable due primarily to our view
that inflationary pressures will not be a significant problem for financial
markets. Companies with a high growth profile should continue to perform better
than average. Valuation levels of the equity market, although historically high,
can be maintained as long as inflationary forces are kept at present levels.
Should there be a change in the outlook for inflation, financial markets could
undergo a meaningful correction. Our general focus will be on finding companies
that can prosper during a moderate growth low inflation environment. We continue
to feel confident that growth stocks will benefit by these positive trends that
have been ongoing for the past several years.
IN CONCLUSION
There's no doubt today's investors need to keep their long-term goals in mind,
and view the day-to-day elasticity of the markets with stout perseverance. One
investment strategy that you may want to consider and review with your financial
professional is asset allocation. Because investment markets perform
differently, you can strive to improve return and minimize your exposure to risk
by investing in a variety of asset classes. The Fortis Series Fund, with its
spectrum of investment styles and portfolios, helps make application of that
strategy easy and convenient. Call your financial professional for more
information.
Thank you for your investment with Fortis. We appreciate your ongoing commitment
and look forward to serving you in the future. As always, if you have any
questions, please call your investment professional or us at Fortis Financial
Group.
Sincerely,
<TABLE>
<S> <C> <C>
[SIGNATURE] [SIGNATURE] [SIGNATURE]
Dean C. Kopperud Howard H. Hudson James S. Byrd
President Vice President Vice President
</TABLE>
Dated: July 12, 1996
3
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY
AS OF 6/30/96
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Money Market Series
Banks 25.7%
Consumer Finance 20.5%
Captive Equipment Finance 12.6%
Diversified Finance 10.0%
Utilities - Electric 9.5%
Captive Auto Finance 6.9%
Beverage 4.7%
Tobacco 4.7%
US Other Direct Federal Obligs 4.6%
Brokerage and Investment 1.9%
</TABLE>
YOUR MONEY MARKET PORTFOLIO
AS THE MOST CONSERVATIVE SUBACCOUNT, THIS PORTFOLIO IS DESIGNED FOR INVESTORS
SEEKING LIQUIDITY AND STABLE PRINCIPAL. ACCORDINGLY, THE MONEY MANAGERS CHOOSE
HIGH QUALITY, SHORT-TERM MONEY MARKET INSTRUMENTS AND U.S. GOVERNMENT
SECURITIES.
REVIEW
When the year began, we believed that short-term rates would decline during the
first quarter. (At the time, 90-day commercial paper rates were lower than
30-day rates, indicating that the market shared our view.) The fund's yield
declined over the first four months as commercial paper purchased in 1995
matured and was replaced with lower yielding securities. After declining in
January and February, short-term rates began to rise in early March, following
the unexpectedly strong February employment report. Subsequent employment
reports were also strong, leading the market to believe that inflationary
pressures would force the Federal Reserve Bank to raise short-term rates. As a
result, the short-term yield curve steepened (i.e. yields on longer maturities
rose more than those on shorter maturities) as investors began pricing potential
future Federal Reserve tightenings into the market. With short-term rates
rising, the fund's yield began to reverse its earlier decline as maturing
securities could be replaced at higher yields.
Over the past six months, the fund's average maturity was kept between 50 and 60
days, which is slightly longer than what we consider a neutral average maturity.
We adopted this strategy with the belief that short-term rates would decline
faster (during the first quarter) or rise slower (during the second quarter)
than current rates then suggested. Although short-term rates did not decline as
fast as we had expected during January and February, the strategy showed
positive results after the market settled down from its initial reaction to the
February employment report. Presently, the portfolio is 100 percent invested in
first tier (highest quality) securities and its average maturity is 45 days. The
average maturity was shortened in recent weeks to reflect the possibility of a
tightening monetary policy. However, current economic data, reflecting a more
moderate growth path, suggest Federal Reserve Bank policy will remain unchanged
for awhile and that modest lengthening of the portfolio maturity is in order.
OUTLOOK
Looking forward, we expect short term rates, and consequently the fund's yield,
to remain near their current levels as the Federal Reserve holds off on changing
policy until economic signals are less ambiguous. We anticipate that the economy
will slow in the fourth quarter of 1996, allowing short-term rates to level off
and eventually decline.
4
<PAGE>
PORTFOLIO COMPOSITION BY SECTOR
AS OF 6/30/96
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
U.S. Government Securities Series
Portfolio Composition by Industry as of 6/30/96
FNMAs 30.20%
U.S. Treasury Securities 25.50%
Other Direct Federal Obligations 21.00%
Receivables/Cash Equivalents 12.30%
GNMAs 8.70%
Other Government Agencies 1.50%
Other 0.80%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/96
<TABLE>
<CAPTION>
Percent of
Bonds Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. FHLB Note (7.31%) 2004 14.4%
2. U.S. Treasury Note (5.75%) 2003 12.8%
3. U.S. Treasury Bond (8.125%) 2021 7.8%
4. FHLB Global Note (6.125%) 1996 6.6%
5. FNMA Global Note (6.85%) 2000 4.2%
6. FNMA Global Note (7.40%) 2004 3.7%
7. FNMA (7.00%) #307055 2025 2.9%
8. FNMA (7.00%) #250345 2025 2.8%
9. U.S. Treasury Note (6.50%) 2005 2.4%
10. FNMA (7.50%) #338432 2026 2.4%
</TABLE>
YOUR U.S. GOVERNMENT SECURITIES PORTFOLIO
DESIGNED FOR CONSERVATIVE INVESTORS SEEKING A STRONG TOTAL RETURN, AS WELL AS A
RELATIVELY HIGH LEVEL OF CURRENT INCOME, THIS PORTFOLIO FOCUSES ITS INVESTMENTS
IN U.S. GOVERNMENT BONDS, TREASURIES AND MORTGAGE-BACKED SECURITIES.
REVIEW
At the beginning of 1996, to maximize the portfolio's total return in a lower
interest rate environment, we extended the portfolio's duration to approximately
five-and-a-half years. In addition, we reduced the portfolio's exposure to
mortgage backed securities (MBS), which tend to underperform as interest rates
decline, and increased the exposure to U.S. Treasuries, which offer better total
returns as rates fall.
The February employment statistics, however, changed the interest rate outlook
almost instantly. Recognizing the implications for the economy and the level of
interest rates, we immediately realigned the portfolio and shortened the
duration to just shy of five years. We assumed this more defensive posture for
the short term as we awaited further evidence of an economic recovery. In
addition, we reversed the portfolio's overweighted U.S. Treasury position and
invested in higher yielding MBS assets. We believed these securities would
provide a better total return if interest rates continued to rise, as well as
provide better coupon income in a stable interest rate environment.
While we were caught by surprise in early March, our decision to immediately
assume a more defensive posture was the correct one. Interest rates have moved
higher since then, as the signs of strong economic growth have gradually
emerged. Since March, we have maintained the lower portfolio duration,
reflecting our slightly negative bias about the direction of interest rates. We
have also continued to overweight our exposure to MBS, which has helped
significantly as this sector has outperformed U.S. Treasuries. Finally, we have
positioned the portfolio in a more "barbelled" structure (holdings concentrated
at both ends of the interest rate spectrum with fewer intermediate holdings), a
strategy that improved performance as the market anticipated a rise in
short-term interest rates by the Federal Reserve, flattening the yield curve,
(short rates rising more than long rates).
All these changes contributed to an improved fund return over the last six
months. While the portfolio underperformed the Lehman Brothers Government Bond
Index in the first quarter, its second quarter performance equaled that of the
Index, with returns improving each month.
Apart from these strategic changes to the portfolio, we have also changed our
policy in regard to the portfolio's sector allocation. Specifically, we have
eliminated our exposure to asset-backed securities (ABS) and corporates, which
comprised almost 25 percent of the portfolio at the beginning of the year. While
these securities have been solid performers on a total return basis, we decided
to restrict our investment universe going forward to only those issues that are
government guaranteed.
OUTLOOK
Over the next three months, we believe that higher interest rates will slow the
pace of economic activity. Once this occurs, we anticipate having a more
positive interest rate outlook as concerns about future inflation dissipate.
Assuming this scenario, we will likely increase the portfolio's duration,
providing investors with the prospect of capital appreciation as rates decline.
VALUE OF $10,000 INVESTED MARCH 24, 1987
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
LEHMAN BROTHERS INTERMEDIATE GOV'T*** U.S. GOVERNMENT SECURITIES SERIES
03/04/87 10,000 10,000
<S> <C> <C>
06/30/87 9,895 9,814
06/30/88 10,639 10,459
06/30/89 11,712 11,494
06/30/90 12,616 12,348
06/30/91 13,947 13,464
06/30/92 15,740 15,158
06/30/93 17,320 16,901
06/30/94 17,287 16,038
06/30/95 19,007 17,952
06/30/96 19,801 18,735
Average Annual Total Return*
1 year +4.36%
5 year +6.83%
Since March 24, 1987** +6.65%
</TABLE>
Annual period ended June 30
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. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of government bonds with an average maturity of three to
four years.
5
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY
AS OF 6/30/96
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Diversified Income Series
Portfolio Composition by Industry as of 6/30/96
FNMAs 15.30%
Commercial Loans 13.50%
GNMAs 9.60%
Banks 9.20%
Manufactured Homes 6.70%
Multi-Family Loans 5.80%
Brokerage and Investment 4.80%
Telecommunications 3.50%
Other Direct Federal Obligations 3.40%
Other 28.20%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/96
<TABLE>
<CAPTION>
Percent of
Bonds Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. GNMA (9.00%) 2020 3.6%
2. Hydro-Quebec (8.05%) 2024 3.0%
3. FNMA Remic (7.00%) 2020 2.8%
4. FNMA (7.00%) 2025 2.8%
5. FHLB Note (7.31%) 2004 2.7%
6. Nationsbank Corp. (7.75%) 2015 2.4%
7. Oakwood Mortgage Investors, Inc. (7.10%) 2020 2.3%
8. DLJ Mtg Acceptance Corp., (8.50%) 2001 2.1%
9. Merrill Lynch Mortgage (6.7887%) 2025 2.1%
10. GNMA (7.50%) 2022 2.1%
</TABLE>
YOUR DIVERSIFIED INCOME PORTFOLIO
THIS PORTFOLIO IS DESIGNED ESPECIALLY FOR THOSE INTERESTED IN SEEKING INCOME
FROM BOTH GOVERNMENT SECURITIES AND CORPORATE BONDS. THE MAJORITY OF THE
PORTFOLIO WILL PURSUE HIGH QUALITY CORPORATE BONDS AND U.S. GOVERNMENT
SECURITIES, A PORTION MAY BE INVESTED IN DIVIDEND PAYING STOCKS AND LOWER-RATED
CORPORATE BONDS FOR ADDITIONAL OPPORTUNITIES.
REVIEW
In anticipation of a lower interest rate environment, we started 1996 with a
portfolio duration of just over five years. In addition to our positive outlook
for interest rates, we overweighted the corporate bond and asset backed
securities sectors in the portfolio since we felt they offered better
performance opportunities than U.S. Treasuries.
With the economic picture changed by the February employment statistics, we
immediately assumed a neutral posture as we awaited further evidence of an
economic recovery. In addition, we continued to add to our overweighted
exposures in the corporate and asset-backed securities sectors of the market. We
believed the yield advantage that these securities offered relative to U.S.
Treasuries would continue to hold steady, if not compress, meaning the return
from these securities would be better than U.S. Treasuries.
While we acknowledge being caught by surprise by the strong employment
statistics in early March, our decision to immediately assume a more defensive
posture was correct. Since that time, we have maintained the portfolio duration
closer to four-and-a-half years, reflecting our concern about the upward
direction of interest rates. As signs of stronger economic growth emerged,
interest rates moved higher. The lower duration, along with the overweighting of
the corporate and asset backed securities, helped the portfolio outperform the
Lehman Brothers Government/Corporate Bond Index over the first six months of
this year.
OUTLOOK
Over the next three months, we think the economy will continue to show signs of
strength. Corporate and asset-backed securities ought to continue to give better
returns than U.S. Treasuries in this scenario. Therefore, we continue to
overweight these sectors.
VALUE OF $10,000 INVESTED MAY 2, 1988
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
LEHMAN BROTHERS AGGREGATE BOND*** DIVERSIFIED INCOME SERIES
05/02/88 10,000 10,000
<S> <C> <C>
06/30/88 10,172 10,150
06/30/89 11,415 11,138
06/30/90 12,312 12,059
06/30/91 13,629 13,266
06/30/92 15,513 14,944
06/30/93 17,374 16,968
06/30/94 17,147 16,525
06/30/95 19,316 18,401
06/30/96 20,164 19,329
Average Annual Total Return*
1 year +5.04%
5 year +7.82%
Since May 2, 1988** +8.82%
</TABLE>
Annual period ended June 30
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. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of government, corporate and mortgage-backed securities
with an average maturity of approximately nine years.
6
<PAGE>
PORTFOLIO DIVERSIFICATION BY COUNTRY AS OF 6/30/96
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Global Bond Series
Portfolio Diversification by Country as of
6/30/96
United States 20.80%
Germany 16.50%
Canada 12.90%
United Kingdom 12.90%
Denmark 10.60%
Cash Equivalents/Receivables 8.20%
Japan 7.00%
Austria 4.20%
France 3.10%
Other 3.80%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/96
<TABLE>
<CAPTION>
Percent of
Bonds Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. U.S. Treasury Note (7.75%) 2000 12.1%
2. Canadian Government (7.25%) 2003 9.3%
3. Kingdom of Denmark (8.00%) 2003 6.3%
4. Kreditanstalt Fuer Wiederaufbau (7.50%) 2000
(Germany) 6.1%
5. United Kingdom Treasury (8.00%) 2003 6.0%
6. United Kingdom Treasury (8.00%) 2000 5.6%
7. Kingdom of Denmark (8.00%) 2001 4.3%
8. Republic of Austria (7.875%) 2002 4.2%
9. General Electric Capital Corp. (8.125%) 2007 4.0%
10. Bayerische Landesbk Giro (6.75%) 2005 (Germany) 3.7%
</TABLE>
YOUR GLOBAL BOND PORTFOLIO
(SUBADVISED BY MERCURY ASSET MANAGEMENT)
THIS PORTFOLIO OFFERS INVESTORS A COMBINATION OF CURRENT INCOME AND GROWTH
POTENTIAL, AND MAKES AN EXCELLENT CHOICE FOR THOSE SEEKING TO ROUND OUT THEIR
INVESTMENT SELECTIONS BY INVESTING IN GLOBAL BONDS. IT SEEKS OUT HIGH QUALITY
BONDS AND OTHER FIXED INCOME SECURITIES OFFERED BY GOVERNMENTS AND CORPORATIONS
WORLDWIDE, WITH AN EMPHASIS IN DEVELOPED COUNTRIES.
REVIEW
Unfortunately, this portfolio experienced a period of lackluster performance.
While significant exposure to the U.S. dollar added relative value, poor bond
market allocation -- especially among the European markets -- was the primary
contributor to underperformance.
On the currency side, the portfolio maintained an overweight position in the
United States, with significant exposure to the yen and European currencies
hedged into the dollar. On the bond side, the portfolio remained underweighted
in North America and Japan. In April, however, the European bond exposures were
restructured with the extreme overweight position in German bonds trimmed back.
Proceeds were used to establish a more diversified structure with exposures
added in Spain, Denmark and the United Kingdom.
OUTLOOK
In the U.S., economic growth has proven stronger than many forecasters had
anticipated. A sustained period of growth will raise concerns about inflationary
pressure, primarily driven by wage inflation. Consequently, should the Federal
Reserve raise interest rates, it would make bond markets vulnerable to growth
and inflation scares. The investment outlook for European bond markets remains
closely linked to the final stages of the preparatory phase before European
Monetary Union (EMU), in addition to the developing economic environment. The
Japanese economy remains on track for a sustained but gradual recovery. The
magnitude of the slow down during quarter three may be smaller than current
expectations, thereby raising the spectre of monetary policy tightening sooner
rather than later. Overall, we continue to de-emphasize Japanese bonds on a
strategic basis.
VALUE OF $10,000 INVESTED JANUARY 3, 1995
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
SALOMON BROS WORLD GOV'T BOND INDEX *** GLOBAL BOND SERIES
01/03/95 10,000 10,000
<S> <C> <C>
06/30/95 11,686 11,541
06/30/96 12,182 11,588
Average Annual Total Return*
1 year +0.41%
Since January 3, 1995** +10.38%
</TABLE>
Annual period ended June 30
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. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of world government bonds with maturities of at least
one year.
7
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY
AS OF 6/30/96
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
High Yield Series
Portfolio Composition by Industry as of 6/30/96
Telecommunications 19.80%
Cable Television 13.70%
Cash Equivalents/Receivables 10.20%
Leisure Time - Amusements 7.00%
Metals - Mining and Miscellaneous 5.30%
Broadcasting 3.70%
Retail - Grocery 3.60%
Containers and Packaging 3.40%
Other 33.30%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/96
<TABLE>
<CAPTION>
Percent of
Bonds Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Marvel Holdings, Inc., (14.46%) 1998 2.4%
2. United International Holdings, Inc., (14.00%) 1999 2.0%
3. Renco Metals, Inc. (12.00%) 2000 1.7%
4. Fonorola, Inc., (12.50%) 2002 1.6%
5. Kash N Karry Corp., (11.50%) 2003 1.6%
6. Tenet Healthcare Corp., (10.125%) 2005 1.6%
7. Groupe Videotron, (10.625%) 2005 1.6%
8. IXC Communications, Inc., (12.50%) 2005 1.6%
9. A+ Network, Inc., (11.875%) 2005 1.6%
10. Trump Castle Funding, Inc. (11.75%) 2003 1.6%
</TABLE>
YOUR HIGH YIELD PORTFOLIO
LONG-TERM INVESTORS, WILLING TO ACCEPT GREATER PRICE FLUCTUATIONS, MAY CHOOSE TO
DIVERSIFY THEIR STOCK OR BOND INVESTMENTS WITH THIS PORTFOLIO OF HIGHER YIELDING
BONDS. ITS MONEY MANAGERS INVEST IN A WIDELY DIVERSIFIED PORTFOLIO OF LOWER
RATED CORPORATE BONDS.
REVIEW
High yield bonds generally perform the best, on a relative basis, when the
economy is improving and stocks are moving higher. The prospect of an
acceleration in economic growth that sent Treasury securities prices lower from
mid-February through June had only a subdued effect on the high yield bond
market. For the first half of 1996, high yield bonds outperformed all other
fixed income categories. This relative insensitivity to rising and falling
interest rates has historically served to make high yield bonds good
diversifiers for fixed income portfolios.
Over the last six months, the portfolio outperformed the average total return of
the Lehman Brothers High Yield Index. However, our allocation to the
telecommunication sector came under some pressure at the end of this reporting
period due to the prevalence of zero coupon bonds in this industry group. Zero
coupon bonds are typically sensitive to changes in interest rates, and,
beginning in March, this type of security was negatively impacted by the jump in
rates.
In addition, the strength of the U.S. economy led the market to favor the
lower-quality, higher credit risk sectors of the high yield bond market. We
chose to gradually improve the overall credit quality and trading liquidity of
the portfolio. Therefore, the portfolio did not benefit from this trend toward
rewarding increased credit risk.
Helping the portfolio's returns significantly was our focus on the gaming
sector, which rallied from 1994's lows to be among the best performing industry
sectors within the high yield market for the first half of 1996. Our strategy
for the remainder of the year will focus on maintaining our improved levels of
credit quality and trading liquidity because of our belief that the high yield
bond market's relative returns in the second half of the year may not exceed
those of the first six months.
OUTLOOK
Looking ahead to the remainder of the calendar year, we believe a moderately
improving U.S. economy will continue to help high yield bonds perform well. Over
the long term, however, we believe that higher rates will eventually slow the
U.S. economy and moderate the returns of the high yield bond sector.
VALUE OF $10,000 INVESTED MAY 2, 1994
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
LEHMAN BROTHERS HIGH YIELD INDEX*** HIGH YIELD SERIES
05/02/94 10,000 10,000
<S> <C> <C>
06/30/94 10,036 9,998
06/30/95 11,423 10,817
06/30/96 12,407 11,694
Average Annual Total Return*
1 year +8.11%
Since May 2, 1994** +7.49%
</TABLE>
Annual period ended June 30
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. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of lower quality, high yield corporate debt securities.
8
<PAGE>
PORTFOLIO ALLOCATION AS OF 6/30/96
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Asset Allocation Series
Portfolio allocation as of
6/30/96
Bonds 59.10%
Equity Securities 39.90%
Cash Equivalents/Receivables 1.00%
</TABLE>
TOP HOLDINGS AS OF 6/30/96
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. First Data Corp. 2.4%
2. WorldCom, Inc. 1.7%
3. Cisco Systems, Inc. 1.7%
4. Oracle Corp. 1.7%
<CAPTION>
Bonds
- -------------------------------------------------------------------
<C> <S> <C>
1. Nomura Asset Securities Corp., (6.68%) 2003 1.8%
2. US Treasury Bond (8.125%) 2021 1.8%
3. Hydro-Quebec (8.05%) 2024 1.7%
4. Oakwood Mortgage Investors, Inc. (7.10%) 2020 1.7%
5. FHLB Global Note (6.125%) 1996 1.6%
6. FNMA (7.25%) 2005 1.5%
</TABLE>
PORTFOLIO CHANGES FOR THE PERIOD ENDED 6/30/96
STOCK ADDITIONS: STOCK ELIMINATIONS:
Wachenhut Corp. Adobe Systems, Inc.
Applied Materials, Inc.
Bay Networks, Inc.
Disney (Walt) Co.
Lowe's Companies, Inc.
Micron Technology, Inc.
Nokia Corp. ADR
Talbots, Inc.
Tandy Corp.
U.S. Healthcare
Vodafone Group plc
YOUR ASSET ALLOCATION PORTFOLIO
DESIGNED FOR INVESTORS WHO SEEK TOTAL RETURN FROM A BLEND OF GROWTH POTENTIAL
AND CURRENT INCOME. THE PORTFOLIO MANAGERS SELECT A MEDLEY OF U.S. STOCKS, BONDS
AND MONEY MARKETS IN PERCENTAGES THAT MAY VARY WITH CURRENT MARKET CONDITIONS.
REVIEW
In the Asset Allocation Portfolio, the allocation mix is adjusted as the outlook
for the stock and bond markets change. The most recent adjustment occurred in
May when stocks were reduced from 45 percent to 40 percent of the portfolio
while bond holdings were increased to 60 percent.
The equity portion of this portfolio is diversified in various economic sectors.
Our focus is on larger companies exhibiting superior earnings prospects. During
the current reporting period, performance was enhanced by stock holdings in
specialty retail, computer software and telecommunications. Holdings in health
maintenance organizations, medical devices and selected technology stocks
detracted from performance.
The bond portion of the portfolio started 1996 with a positive outlook for
interest rates. This view was based on weak economic numbers and the Federal
Reserve's apparent willingness to lower short-term interest rates. In addition,
we entered the year overweighted in corporate bonds and asset-backed securities,
as we felt these areas offered better performance opportunities than U.S.
Treasury securities.
The February announcement about employment statistics caught us and the market
by surprise and had important implications about the strength of the economy and
the outlook for interest rates. We immediately realigned the portfolio and until
recently maintained the portfolio's duration closer to four-and-a-half years,
reflecting our slightly negative bias about the direction of interest rates.
This strategy has worked as interest rates moved higher.
OUTLOOK
Looking forward, we expect economic growth to moderate and inflationary
pressures to be of less concern. Should this occur, we would increase the
portfolio's duration consistent with maximizing returns in a declining interest
rate environment.
VALUE OF $10,000 INVESTED APRIL 1, 1987
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
LEHMAN BROTHERS AGGREGATE BOND INDEX T S&P 500 TT ASSET ALLOCATION SERIES
4/1/87 10,000 10,000 10,000
6/30/87 10,098 10,607 10,392
<S> <C> <C> <C>
6/30/88 10,911 9,875 9,809
6/30/89 12,244 11,902 11,095
6/30/90 13,200 13,854 12,838
6/30/91 14,619 14,877 13,674
6/30/92 16,671 16,880 15,690
6/30/93 18,636 19,174 17,608
6/30/94 18,392 19,431 17,564
6/30/95 20,719 24,490 21,130
6/30/96 21,628 30,895 23,521
Average Annual Total Return*
1 year +11.32%
5 Year +11.46%
Since May 1, 1987** +9.98%
</TABLE>
Annual period ended June 30
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. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
+ 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.
9
<PAGE>
PORTFOLIO ALLOCATION AS OF 6/30/96
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Global Asset Allocation Series
Portfolio Allocation as of
6/30/96
Equity Securities 45.40%
Bonds 37.30%
Cash Equivalents/Receivables 17.30%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/96
<TABLE>
<CAPTION>
Percent of
Bonds Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. German Unity Fund (8.00%) 2002 3.4%
2. U.S. Treasury Note (5.625%) 2001 2.6%
3. U.S. Treasury Note (7.25%) 2004 2.3%
4. U.S. Treasury Note (6.25%) 2000 2.2%
5. Italian Government (10.50%) 2000 2.1%
6. Swedish Government (13.00%) 2001 2.1%
7. United Kingdom Treasury (9.75%) 2002 2.0%
8. Int'l Bank Reconstruction & Develop (4.75%) 2004 1.9%
9. U.S. Treasury Note (7.875%) 2004 1.8%
10. German Government (6.50%) 2003 1.6%
</TABLE>
YOUR GLOBAL ASSET ALLOCATION PORTFOLIO
(SUBADVISED BY MORGAN STANLEY ASSET MANAGEMENT)
DESIGNED ESPECIALLY FOR INVESTORS WHO WANT A FLEXIBLE PORTFOLIO THAT SEEKS TOTAL
RETURN FROM A BLEND OF GROWTH POTENTIAL AND CURRENT INCOME FROM AROUND THE
WORLD, INCLUDING THE UNITED STATES, BY INVESTING IN GLOBAL STOCKS, BONDS AND
MONEY MARKET INSTRUMENTS IN PERCENTAGES THAT MAY VARY WITH MARKET CONDITIONS.
REVIEW
The bond portion of the portfolio's performance benefited from a continued
overweight position in European bonds at the expense of the U.S. Within Europe,
the money managers held overweight positions in the high yielding markets,
particularly Italy, which have performed well. The European bond exposure was
partially hedged back to U.S. dollars, protecting against the appreciation of
the dollar while earning hedging premiums. The portfolio remained underweight in
Japanese bonds, which actually performed quite well in local currency terms
during the reporting period. The continued fall in the yen turned this into a
positive factor for performance. Overall duration of the bond holdings was kept
slightly defensive, and at the end of the reporting period, approximately 35
percent of the fund was invested in bond markets.
The geographic distribution of the equity holdings is a result of our style of
stock picking rather than a top-down "macro" allocation. The portfolio remained
fully weighted in the U.S. market, significantly underweight in Japan and
overweight in core European countries. While this structure marginally impacted
performance, most of the relative gains came from superior stock selection in
most markets. Also of benefit were specific takeover situations, for example
CIB-Giegy/Sandoz in the Swiss market and Cray Research in the United States. The
retail sector worldwide performed well, and the portfolio is overweighted in
that sector. In addition, cyclical stock holdings recovered strongly as world
growth appeared to recover. The main negative for performance was the weakness
in the French banking sector holdings.
An overweight U.S. dollar currency weighting was maintained, partly through
hedging from European bond and Swiss equity exposures. The dollar continued to
appreciate against core European currencies and the yen over the period. Cash
levels were higher than normal, at about 17 percent. This position reflects not
only new inflows of cash, but a cautious stance on the bond and equity markets
in general.
OUTLOOK
As we enter the third quarter, we believe that European bond markets are the
safest over the balance of the year, while the Japanese equity market could make
rapid upward progress if its bond market can remain indifferent to extreme
fiscal and monetary looseness. The United States' equity market is vulnerable to
any further weakening in bonds attributable to a late cycle breakout in wages
growth. Though the June wages number may prove abnormal, it has certainly
highlighted the risk in U.S. equities at current levels. To attribute such risk
to U.S. equities alone is foolhardy given the massive flow of mutual funds into
international and emerging markets equities in recent months.
VALUE OF $10,000 INVESTED JANUARY 3, 1995
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
SALOMON BROS WORLD GOV'T BOND INDEX T MSCI WORLD INDEX TT GLOBAL ASSET ALLOCATION SERIES
<S> <C> <C> <C>
01/03/95 10,000 10,000 10,000
06/30/95 11,686 10,942 11,189
06/30/96 12,182 13,021 12,516
Average Annual Total Return*
1 year +11.86%
Since January 3, 1995** +16.22%
</TABLE>
Annual period ended June 30
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.
This represents the performance of the Series
itself, without the expenses associated with the
variable annuities or variable universal life
insurance policies.
* SEC defined total returns, including
reinvestment of all dividend and capital
gains distributions.
** Date shares were first offered to the public.
+ An unmanaged index of world government bonds
with maturities of at least one year.
++ An unmanaged index of the world's major
equity markets in U.S. dollars, weighted by
stock market value.
10
<PAGE>
COMPOSITION BY INDUSTRY
AS OF 6/30/96
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
FORTIS VALUE SERIES
Composition by Industry as of 6/30/96
<S> <C>
Cash Equivalents/Receivables 13.50%
Broadcasting 7.00%
Retail - Department Stores 4.80%
Office Equipment and Supplies 4.60%
Oil - Crude Petroleum and Gas 4.00%
Drugs 3.60%
Real Estate - Investment Trust 3.60%
Banks 3.10%
Other 55.80%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/96
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Schering-Plough Corp. 2.7%
2. Mallinckrodt Group, Inc. 2.7%
3. Pitney Bowes, Inc. 2.7%
4. Echlin, Inc. 2.6%
5. Williams Companies, Inc. 2.6%
6. Tele Communications Inc. 2.6%
7. James River Corp. of Virginia 2.5%
8. Owens Corning 2.5%
9. Interpublic Group of Companies 2.5%
10. Burlington Northern Santa Fe Corp. 2.5%
</TABLE>
YOUR VALUE PORTFOLIO
DESIGNED FOR INVESTORS WHO LIKE TO DISCOVER QUALITY GROWTH INVESTMENT
OPPORTUNITIES AT "BARGAIN" PRICES. THE INVESTMENT TEAM CHOOSES STOCKS WITH
CURRENT PRICES THAT DO NOT NECESSARILY REFLECT THE STOCKS' POTENTIAL VALUE.
REVIEW
The Value Portfolio was added to the Series Fund in May 1996. The portfolio
focuses on undervalued, medium-to-large-sized companies with accelerating
earnings growth or companies that are cheaply priced in relation to sustainable
growth rates. Current income is a secondary consideration. The goal is to
provide a total return that is competitive with the general stock market over
the long term.
The portfolio is well-diversified across a variety of sectors, including energy,
healthcare, financial services, transportation, utilities and consumer products
and services. The volatility of the portfolio should be below average by virtue
of its diversification and investment style.
OUTLOOK
We are cautious in our outlook for equities. The macroeconomic environment
remains attractive with moderate growth rates and inflation. However, we believe
that the stock market may remain turbulent as it adjusts to higher interest
rates and to decelerating earnings growth. The fund will continue to emphasize
defensive and undervalued investments in this environment.
VALUE OF $10,000 INVESTED MAY 1, 1996
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
S&P 500*** VALUE SERIES
<S> <C> <C>
5/1/96 10,000 10,000
6/30/96 10,300 10,168
Average Annual Total Return*
Since May 1, 1996** +1.68%
</TABLE>
Annual period ended June 30
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. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of 500 common stocks.
11
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY AS OF 6/30/96
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GROWTH & INCOME SERIES
Portfolio Composition by Industry as of 6/30/96
<S> <C>
Cash Equivalents/Receivables 20.2%
Finance Companies 9.5%
Drugs 7.3%
Utilities - Telephone 6.5%
Machinery - Oil and Well 4.6%
Natural Gas Transmissions 4.3%
Medical Supplies 3.9%
Telecommunications 3.3%
Miscellaneous 3.0%
Oil - Crude Petroleum and Gas 3.0%
Other 34.4%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/96
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Household International, Inc. 2.5%
2. Beneficial Corp. 2.2%
3. PanEnergy Corp. 2.2%
4. El Paso Natural Gas Co. 2.1%
5. Williams Companies, Inc. 2.1%
6. American Home Products Corp. 2.1%
7. Baxter International, Inc. 2.0%
8. Sonat, Inc. 1.9%
9. Snap-On, Inc. 1.9%
10. Philip Morris Companies, Inc. 1.8%
</TABLE>
PORTFOLIO CHANGES FOR THE PERIOD ENDED 6/30/96
ADDITIONS: ELIMINATIONS:
Household Int'l, Inc. 360 Communications
New England Bs. Srv Bell Atlantic Corp.
Safeco Corp. Browning-Ferris Ind.
Sprint Corp. Ethyl Corp.
Tenneco Inc. Highlands Ins
Tranz Rail Ltd. Johnson & Johnson
United Tech. Corp. Mercury Finance
Schering-Plough Corp.
U.S. HealthCare
YOUR GROWTH & INCOME PORTFOLIO
FOR INVESTORS WHO WANT TO COMBINE CONSERVATIVE GROWTH OPPORTUNITIES WITH INCOME
POTENTIAL, THIS PORTFOLIO OFFERS A SOLUTION. THE GROWTH & INCOME PORTFOLIO
FOCUSES ON THOSE COMPANIES WITH ATTRACTIVE CURRENT DIVIDEND YIELDS RELATIVE TO
THE STANDARD AND POOR'S 500 INDEX. THE PORTFOLIO IS WELL DIVERSIFIED WITH
EXPOSURE TO MANY SECTORS OF THE ECONOMY.
REVIEW
During the period under review the Growth & Income Portfolio slightly
underperformed the market as measured by the S&P 500. The portfolio's
performance was enhanced by selective holdings in the energy related, ethical
drugs, and specialty retailing areas. Detracting from performance were selected
holdings in the telephone utility sector, as well as several consumer related
companies that reported earnings shortfalls.
The technology sector returned to a leadership position during the second
quarter, hurting relative performance comparisons. The portfolio was not
invested in technology due to the lack of above average yields available in this
sector of the market.
OUTLOOK
Concerns over the strength of the U.S. economy and the Federal Reserve's
response to such growth have heightened investor caution. Near term, uncertainty
about Federal Reserve actions will likely prompt some profit-taking after the
long market rise. Therefore, we have a slightly above average level of cash
reserves to take advantage of opportunities during the period ahead.
VALUE OF $10,000 INVESTED MAY 2, 1994
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
S&P 500*** GROWTH & INCOME SERIES
<S> <C> <C>
5/2/94 10,000 10,000
6/30/94 9,912 9,942
6/30/95 12,492 11,448
6/30/96 15,760 14,430
Average Annual Total Return*
1 Year +26.05%
Since May 2, 1994** +18.44%
</TABLE>
Annual period ended June 30
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. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of 500 common stocks.
12
<PAGE>
COMPOSITION BY INDUSTRY
AS OF 6/30/96
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
FORTIS S&P 500 SERIES
Composition by Industry as of 6/30/96
<S> <C>
Capital Spending 21.6%
Consumer Staples 13.4%
Finance 13.4%
Consumer Discretionary 12.6%
Utilities 10.8%
Energy & Related 9.4%
Health Care 9.4%
Basic Industry 5.3%
Other 4.1%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/96
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. General Electric Co. 2.8%
2. Coca Cola Co. 2.4%
3. EXXON Corp. 2.0%
4. AT&T Corp. 1.8%
5. Philip Morris Co., Inc. 1.6%
6. Royal Dutch Petroleum 1.6%
7. Merck & Co., Inc. 1.6%
8. Microsoft Corp. (a) 1.4%
9. Johnson & Johnson Co. 1.3%
10. Procter & Gamble Co. 1.2%
</TABLE>
PORTFOLIO CHANGES FOR THE PERIOD ENDED 6/30/96
ELIMINATIONS:
Loral Corp.
Loral Space & Comm.
Payless ShoeSource
Premark Intl Inc.
YOUR S&P 500 STOCK INDEX PORTFOLIO
(SUBADVISED BY DREYFUS)
AS ONE OF THE THREE NEWCOMERS TO THE FORTIS SERIES FUND, THIS PORTFOLIO IS
DESIGNED ESPECIALLY FOR INVESTORS WHO WANT TO EMULATE THE TOTAL RETURN OF THE
STANDARD & POOR'S 500 STOCK INDEX.
REVIEW
The Fortis S&P 500 Stock Index Portfolio began operation on May 1 with $5
million in assets. At the end of the reporting period, which was just two months
later, inflows had increased the portfolio's size to $7.8 million. The portfolio
earned a total rate of return of 2 .90 percent over its first two months of
operation, which compared favorably to the S&P 500 Index return of 2 .97
percent.
The portfolio is constructed to emulate the characteristics of the S&P 500
Index. Initially, the portfolio owned 416 stocks of the 500 stocks in the Index,
and with additional assets, purchased 84 more by the end of the quarter.
OUTLOOK
As a portfolio that mirrors the holdings of an existing stock index and as
additional monies flow into the Fortis portfolio, we will continue to make the
appropriate changes in accordance with the portfolio's investment objective.
VALUE OF $10,000 INVESTED MAY 1, 1996
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
S&P 500*** S&P 500 SERIES
<S> <C> <C>
05/10/96 10,000 10,000
06/30/96 10,300 10,290
Average Annual Total Return*
Since May 1, 1996** +2.90%
</TABLE>
Annual period ended June 30
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. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of 500 common stocks.
13
<PAGE>
COMPOSITION BY INDUSTRY
AS OF 6/30/96
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
FORTIS BLUE CHIP STOCK SERIES
Composition by Industry as of 6/30/96
<S> <C>
Cash Equivalent/Receivables 9.5%
Finance Companies 9.0%
Banks 7.1%
Computer - Software 6.1%
Drugs 5.9%
Miscellaneous 5.1%
Health Care Services 4.1%
Insurance 3.9%
Other 49.3%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/96
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. First Data Corp. 1.7%
2. Federal Home Loan Mortgage Corp. 1.7%
3. Pfizer, Inc. 1.6%
4. General Electric Co. 1.5%
5. Traverlers Group, Inc. 1.4%
6. Philip Morris Companies, Inc. 1.4%
7. Kimberly-Clark Corp. 1.4%
8. Allied Signal, Inc. 1.4%
9. Johnson & Johnson 1.3%
10. Eastman Kodak Co. 1.3%
</TABLE>
PORTFOLIO CHANGES FOR THE PERIOD ENDED 6/30/96
ELIMINATIONS:
Altera Corp.
Baker Hughes, Inc.
ContiFinancial Corp.
Echlin
RAC Financial Group, Inc.
Rite Aid Corp.
Royal Caribbean Cruises Ltd.
Safeway
Saks Holdings, Inc.
Security First Network Bank
Southern Pacific Funding Corp.
St. Jude Medical, Inc.
Travelers/Aetna Property
Casualty Corp.
U.S. Bancorp
Viacom, Inc. Class B
WMX Technologies
YOUR BLUE CHIP STOCK PORTFOLIO
(SUBADVISED BY T. ROWE PRICE)
AS ANOTHER OF THE THREE NEWCOMERS TO THE FORTIS SERIES FUND, THE MONEY MANAGERS
FOR THIS PORTFOLIO TARGET BLUE CHIP COMPANIES WITH LEADING MARKET POSITIONS,
SEASONED MANAGEMENT AND STRONG FINANCIAL FUNDAMENTALS. THEY BELIEVE THE
COMPANIES THEY CHOOSE WILL GENERATE THE CONSISTENT, DURABLE EARNINGS GROWTH THAT
PROVIDES THE BASIS FOR ABOVE-AVERAGE STOCK PERFORMANCE.
REVIEW
The new Fortis Blue Chip Stock Portfolio experienced fairly strong performance
during this reporting period considering its short existence. Performance was
driven by contributions from a number of sectors, including financial,
manufacturing, healthcare, retail and energy.
Specifically, holdings in quality consumer companies such as Pfizer, Schering
Plough, SmithKline Beecham, Pepsi, Heinz, Sara Lee and Procter and Gamble were
maintained or increased. The investment strategy emphasized steady, predictable
growth companies, such as the number two payroll processor in the U.S.,
Ceridian. Also added to the portfolio was Vodaphone, the largest telephone
company in the United Kingdom and one of the largest cellular phone companies in
the world.
OUTLOOK
We believe the U.S. equity market is reasonably constructive, and we expect many
of these holdings will experience continued earnings growth, regardless of the
economic or interest rate environment.
VALUE OF $10,000 INVESTED MAY 1, 1996
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
S&P 500*** BLUE CHIP STOCK SERIES
<S> <C> <C>
5/1/96 10,000 10,000
6/30/96 10,300 10,160
Average Annual Total Return*
Since May 1, 1996** +1.60%
</TABLE>
Annual period ended June 30
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. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of 500 common stocks.
14
<PAGE>
PORTFOLIO DIVERSIFICATION BY COUNTRY
AS OF 6/30/96
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GLOBAL GROWTH SERIES
Portfolio Diversification by Country as of
6/30/96
<S> <C>
United States 42.70%
Japan 7.70%
Germany 6.20%
Netherlands 4.90%
Italy 4.80%
United Kingdom 3.50%
Sweden 3.40%
Austria 3.00%
Cash Equivalents/Receivables 2.80%
Other 21.00%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/96
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Gartner Group, Inc. Class A (US) 4.1%
2. SAP AG Systeme Preferred (Germany) 3.3%
3. Fila Holdings S.p.A. ADR (Italy) 2.5%
4. SGL Carbon AG (Germany) 2.4%
5. Randstad Holdings NV (Netherlands) 2.3%
6. U.S. Robotics Corp.(US) 2.3%
7. Wisconsin Centeral Transportation Corp. (US) 2.0%
8. Nokia (AB) K Shares (Finland) 1.9%
9. OMV Aktiengesellschaft (Austria) 1.7%
10. Cisco Systems, Inc. (US) 1.6%
</TABLE>
PORTFOLIO CHANGES FOR THE PERIOD ENDED 6/30/96
ADDITIONS: ELIMINATIONS:
Ceridian Corp. British Sky Broadcasting plc
Chargeurs Buenos Aires Embotelladora
CPT Telefonia Del Peru- B S.A. S.A.
CUC International, Inc. Canadian National Railway Co.
Data Processing Resources DSC Communications Corp.
Corp. Iochpe Maxion S.A.
Disco S.A. Landmark Graphics Corp.
Harvey Nichols Mercury Interactive Corp.
Hutchison Whampoa, Ltd. Scandinavian Mobility
OMV Aktiengesellschaft Internatiol
Orange plc Sidel S.A.
OzEmail Ltd. Tandy Corp.
Petroleum Geo-Services ADS Telewest plc
Sony Corp. Vodafone Group plc
Sykes Enterprises, Inc. Wabash National Corp.
Tidewater, Inc.
Tommy Hilfiger Corp.
Toolex Alpha
Total Renal Care Holdings
Trico Marine Services, Inc.
YOUR GLOBAL GROWTH PORTFOLIO
SLIGHTLY MORE AGGRESSIVE GROWTH INVESTORS WHO WANT TO DIVERSIFY AND EXPAND THEIR
HORIZONS BEYOND THE UNITED STATES, MAY WANT TO CONSIDER THIS HIGHLY DIVERSIFIED
(BOTH GEOGRAPHICALLY AND INDUSTRIALLY) PORTFOLIO.
REVIEW
The portfolio's favorable performance over the past six months has been affected
by the equity market's focus on companies with strong relative growth prospects.
Valuation levels for rapidly growing companies have expanded over the past 18
months. We anticipate that investors will continue to pay a premium for growth,
especially in a moderately growing global economy with low inflation. Overall
the portfolio is well positioned in the high growth areas of the future such as
telecommunications, software based technology, and consumer niche companies.
Generally speaking, the portfolio's past and future focus will be on medium
sized, higher growth oriented companies. Geographically the portfolio had 42.7%
of its assets in the United States, 28.6% in Europe, 7.7% in Japan and 7.7% in
emerging regions at June 30, 1996. This compares to a United States component of
the MSCI World Index of 45.1%.
OUTLOOK
The intermediate term outlook for global equity investing is uncertain due
primarily to concerns over slowing corporate earnings growth and fears about
rising interest rates in the United States. The portfolio will continue its
investment focus on niche companies that can demonstrate strong relative growth
regardless of the macroeconomic environment. The sharp correction experienced in
most equity markets in recent weeks has eliminated much of the speculation which
had dominated investor's attention. This should set the stage for an eventual
refocus back on companies with superior growth prospects. We remain confident
that our global approach is appropriate for investors seeking greater
diversification of their growth holdings.
VALUE OF $10,000 INVESTED MAY 1, 1992
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
MSCI WORLD INDEX*** GLOBAL GROWTH SERIES
<S> <C> <C>
5/1/92 10,000 10,000
6/30/92 10,057 9,967
6/30/93 11,828 11,996
6/30/94 13,102 12,002
6/30/95 14,571 14,808
6/30/96 17,340 19,668
Average Annual Total Return*
1 Year +32.82%
Since May 1, 1992** +17.66%
</TABLE>
Annual period ended June 30
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. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of the world's major equity markets in U.S. dollars,
weighted by stock market value.
15
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY
AS OF 6/30/96
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GROWTH STOCK SERIES
Portfolio Composition by Industry as of 6/30/96
<S> <C>
Computer - Software 18.6%
Cash Equivalents/Receivables 13.6%
Telecommunications 13.3%
Retail - Miscellaneous 9.3%
Finance Companies 6.3%
Health Care Services 6.3%
Telephone Services 3.9%
Electronic - Communication Security 3.5%
Restaurants and Franchising 3.5%
Other 21.7%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/96
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Cisco Systems, Inc. 4.1%
2. Tellabs, Inc. 3.6%
3. Oracle Corp. 3.5%
4. 3Com Corp. 3.1%
5. WorldCom, Inc. 2.9%
6. Microsoft Corp. 2.6%
7. Sterling Software, Inc. 2.3%
8. CUC International, Inc. 2.1%
9. Informix Corp. 2.1%
10. Parametric Technology Corp. 2.0%
</TABLE>
PORTFOLIO CHANGES FOR THE
PERIOD ENDED 6/30/96
ADDITIONS: ELIMINATIONS:
AccuStaff Inc. Applied Materials, Inc.
Cascade Communications Corp. Bay Network, Inc.
Green Tree Financial Corp. Compaq Computer Corp.
HFS Inc. Cypress Semiconductor Corp.
Steris Corp. DSC Communications Corp.
MedPartners/Mullikin, Inc. Lam Research Corp.
U.S. Robotics Corp. Lowe's Co., Inc.
General Nutrition Co., Inc. LSI Logic Corp.
Genzyme Corp. Micron Technology, Inc.
Phycor Inc. Mobile Telecommunications
Starbucks Corp. Technologies Corp.
Sunglass Hut International, Nokia Corp.
Inc. U.S. HealthCare, Inc.
YOUR GROWTH STOCK PORTFOLIO
DESIGNED FOR INVESTORS SEEKING REWARD POTENTIAL EXCLUSIVELY THROUGH U.S. STOCKS
BY INVESTING IN MEDIUM-SIZED GROWTH COMPANIES THAT HAVE PROGRESSED BEYOND THE
VENTURE STAGE.
REVIEW
The Growth Stock Portfolio had a strong first half, rising somewhat more rapidly
than the overall stock market. The strength in stock prices has been surprising,
coming in the face of sharply rising interest rates. Normally under these
conditions, stock prices decline because higher interest rates portend a
declining economy in the future accompanied by lower corporate profits. In
addition, at higher interest rate levels, fixed income returns become more
attractive relative to equities.
Offsetting the rise in rates in this period of time has been the strong flow of
funds for investment, mostly by individuals, into mutual funds and into company
profit sharing plans. Also, corporations have continued to report unexpectedly
strong earnings in recent quarters.
The portfolio rose along with stocks in general, and particularly benefited from
its large holding of technology stocks. However, during the first half, we took
advantage of this strength and reduced our technology positions, redirecting the
profits into other areas.
OUTLOOK
We believe that investing in technology will remain a major thrust for companies
and consumers around the world, so technology will remain an important part of
the portfolio. Nevertheless, we believe it is prudent at the current relatively
high level of the stock market to lower our exposure to this volatile segment
and diversify our holdings across a wider list of industries and companies.
Among these areas, new or expanded positions have been taken in a variety of
business services, including telecommunications, financial, outsourcing and
energy.
VALUE OF $10,000 INVESTED MARCH 24, 1987
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
S&P 500*** GROWTH STOCK SERIES
<S> <C> <C>
3/24/87 10,000 10,000
6/30/87 10,800 9,812
6/30/88 10,055 9,012
6/30/89 12,118 10,978
6/30/90 14,105 13,162
6/30/91 15,148 14,149
6/30/92 17,187 16,391
6/30/93 19,522 19,468
6/30/94 19,784 18,375
6/30/95 24,924 23,731
6/30/96 31,456 28,311
Average Annual Total Return*
1 Year +19.30%
5 Year +14.88%
Since March 24, 1987** +11.26%
</TABLE>
Annual period ended June 30
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. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of 500 common stocks.
16
<PAGE>
PORTFOLIO DIVERSIFICATION BY COUNTRY
AS OF 6/30/96
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
INTERNATIONAL STOCK SERIES
Portfolio Diversification by Country as of
6/30/96
<S> <C>
Japan 26.4%
United Kingdom 14.7%
France 13.0%
Germany 10.8%
Cash Equivalents/Receivables 8.0%
Switzerland 6.2%
Netherlands 5.8%
Australia 4.0%
Sweden 2.8%
Other 8.3%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/96
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Sony Corp. (Japan) 2.9%
2. Alcatel Alsthom CIE Generale D'Electricite S.A.
(France) 2.7%
3. Hoechst AG (Denmark) 2.3%
4. Toyota Motor (Japan) 2.3%
5. Heineken NV (Netherlands) 2.3%
6. Empresa Nacional de Electricidad (Spain) 2.1%
7. British Aerospace (UK) 2.0%
8. Rohm Company (Japan) 2.0%
9. Royal Dutch Petroleum Co. (Netherlands) 2.0%
10. Nestle S.A. (Switzerland) 2.0%
</TABLE>
YOUR INTERNATIONAL STOCK PORTFOLIO
(SUBADVISED BY LAZARD FRERES ASSET MANAGEMENT)
INVESTORS WILLING TO BALANCE THE RISKS AND REWARDS OF INTERNATIONAL STOCK
INVESTING OFTEN SELECT THIS PORTFOLIO TO DIVERSIFY AN ESTABLISHED INVESTMENT
STRATEGY. IT FOCUSES EXCLUSIVELY ON GROWTH COMPANY STOCKS OUTSIDE OF THE UNITED
STATES.
REVIEW
Powered by strong stock selection, the International Stock Portfolio
convincingly outperformed the Morgan Stanley Capital International Europe Asia
Far East (MSCI EAFE) Index year-to-date. Companies committed to increasing
shareholder value have become the key driver of international returns as
managements recognize the global competition for capital. The proposed merger of
Swiss pharmaceutical giants Ciba-Geigy and Sandoz is just one example of
European mergers that benefited the portfolio.
While shareholders are certainly benefiting from increased merger activity,
companies selling their non-core assets or demerging unrelated activities are
also unlatching value. For example, Daimler-Benz (Germany) sold Dornier, its
loss-making propeller aircraft business and closed Fokker, another of its
unprofitable businesses to focus on its core auto business. Hoechst's (Germany,
chemicals) stock price also benefited from the possibility that it may spin off
its drug operations or chemical business to increase shareholder value. In The
Netherlands, ING (banks) hit new highs as its 1995 acquisition of Barings
Securities helped increase the company's net profit more than 40 percent.
While concern of an interest rates rise tempered enthusiasm in Japan, the shift
in management style led to strong company results that drove the Nikkei to its
highest levels in five years. A significant portion of the portfolio's positive
performance can be attributed to our Japanese holdings of Sony and Matsushita
Electric Industries (consumer goods), Promise (finance), Honda (autos), and
Toyota (autos), all of which surged after announcing better than expected
financial results. Although the weak performance of the portfolio's few
Australian holdings had a slightly negative effect, low relative exposure to the
entire Pacific Rim region also helped performance.
OUTLOOK
International markets continue to look attractive as the valuation gap versus
the U.S. market is at an historic high. The need to compete for global capital
is forcing managements of international companies to defy tradition and take
concrete steps to return value to shareholders.
German companies, such as Daimler-Benz, are linking management salaries to
performance, cutting costs, and presenting financial information according to
International Accounting Standards. Japanese companies focused on restructuring
should continue to blossom, since it is unlikely the government will take any
action to hinder the budding economy. In addition, the strengthening dollar
should help foreign exporters who have previously been restrained by the
dollar's weakness. The portfolio is well positioned to profit as international
companies restructure and the valuation gap narrows.
VALUE OF $10,000 INVESTED JANUARY 3, 1995
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
MSCI EAFE*** INTERNATIONAL STOCK SERIES
<S> <C> <C>
1/3/95 10,000 10,000
6/30/95 10,276 10,488
6/30/96 11,707 12,355
Average Annual Total Return*
1 Year +17.81%
Since January 3, 1995** +15.22%
</TABLE>
Annual period ended June 30
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.
This represents the performance of the Series
itself, without the expenses associated with the
variable annuities or variable universal life
insurance policies.
* SEC defined total returns, including
reinvestment of all dividend and capital
gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of the stocks of Europe,
Australia, and the Far East.
17
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY
AS OF 6/30/96
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH SERIES
Portfolio Composition by Industry as of 6/30/96
<S> <C>
Computer - Software 20.4%
Cash Equivalents/Receivables 18.8%
Business Services and Supplies 10.0%
Retail - Miscellaneous 7.3%
Health Care Services 6.6%
Utilities - Telephone 4.0%
Telecommunications 3.8%
Restaurants and Franchising 3.7%
Retail - Specialty and Specialty Mail Order 3.5%
Other 21.9%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/96
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. APAC Teleservices, Inc. 2.9%
2. West Marine, Inc. 2.4%
3. LCI International, Inc. 1.9%
4. Gadzooks, Inc. 1.9%
5. United Waste System, Inc. 1.8%
6. MFS Communications Co. 1.8%
7. Intermedia Communications of Florida 1.8%
8. Cascade Communications Corp. 1.8%
9. Corporate Express, Inc. 1.7%
10. StrataCom, Inc. 1.7%
</TABLE>
YOUR AGGRESSIVE GROWTH PORTFOLIO
DESIGNED ESPECIALLY FOR THE MOST AGGRESSIVE, LONG-TERM INVESTOR WHO BELIEVES IN
THE ENTREPRENEURIAL OPPORTUNITIES OF AMERICA. THIS PORTFOLIO INVESTS IN SMALLER,
EMERGING GROWTH COMPANIES THAT HAVE HIGH UNIT GROWTH RATES FOR THEIR PRODUCTS OR
SERVICES.
REVIEW
Good stock selection carried the fund to solid performance in the last six
months. At the same time, we attempted to lessen risk by increasing the number
of holdings and by carrying a moderate amount of cash. The portfolio has been
well diversified in various segments of the economy, including business
services, retail, emerging telephone companies, technology, and healthcare
related.
OUTLOOK
Historically, investing in smaller companies can be more volatile over the short
term as a result of their higher relative valuations. We expect this tendency to
continue throughout the balance of 1996. It is our belief that investors with
patience and a longer time horizon can benefit from volatility and may be
rewarded by the capital appreciation of the leading growth companies of the
future.
VALUE OF $10,000 INVESTED MAY 2, 1994
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
S&P 500*** AGGRESSIVE GROWTH SERIES
<S> <C> <C>
5/2/94 10,000 10,000
6/30/94 9,912 9,133
6/30/95 12,492 11,352
6/30/96 15,760 14,722
Average Annual Total Return*
1 Year +29.69%
Since May 2, 1994** +19.54%
</TABLE>
Annual period ended June 30
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. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of 500 common stocks.
PORTFOLIO CHANGES FOR THE PERIOD ENDED 6/30/96
ADDITIONS: Just for Feet, ELIMINATIONS: MIDCOM
ABR Info. Svcs. Inc. Authentic Fitness Communication
AccuStaff, Inc. L & H Speech Prod Avid Tech, Inc. Paradigm Tech.
Apolio Group, Inc. McLeod Inc. Books-A-Million Quarterdeck Corp.
Ascend Comm., Inc. Mossimo Inc. Cerner Corp. Speedway
Aspen Tech. Inc. National Ed Corp. Check Point Tech. Motorsports
Biochem Pharma Parexel Intl. DSC Commun Corp. Spyglass Inc.
Boston Beer (The) Corp. Edify Corp. Trimble Navigation
Career Horizons Pharm Prod Dev FSI International Ultratech Stepper
Inc. Inc. Garden Botanika In Verilink Corp.
Cybercash, Inc. Quicksilver Inc. Genesis Health Visioneer
Edify Corp. Romac Intl. Vent Xilinx, Inc.
HNC Software Inc. Seattle Film Works Health Care & Ret.
Indus Group Sterling Commerc Micro Warehouse
Interme Comm of FL Inc.
Westell Tech Inc.
Xylan Corp.
18
<PAGE>
FORTIS SERIES FUND, INC.
MONEY MARKET SERIES
Schedule of Investments
June 30, 1996 (Unaudited)
SHORT-TERM INVESTMENTS-100.98%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
Principal & Poor's Market
Amount Rating Cost(a) Value(b)
----------- ----------- ------------ ------------
<C> <S> <C> <C> <C>
BANKS-18.14%
$2,500,000 Banc One Funding Corp., 5.51% 8-23-1996(c)... A1 $ 2,479,825 $ 2,479,825
1,800,000 Deutsche Bank Financial Inc., 5.22%
7-22-1996.................................. A1 1,794,478 1,794,478
1,316,000 First Trust Money Market Variable Rate Time
Deposit, Current Rate -- 5.13%............. A1+ 1,316,000 1,316,000
2,500,000 Norwest Corp., 5.39% 8-2-1996................ A1+ 2,487,945 2,487,945
1,500,000 Toronto-Dominion Holdings USA, Inc., 5.55%
10-10-1996................................. A1+ 1,459,803 1,477,050
------------ ------------
9,538,051 9,555,298
------------ ------------
BEVERAGE-4.68%
2,500,000 Pepsico, Inc., 5.47% 9-25-1996............... A1 2,463,454 2,467,375
------------ ------------
BROKERAGE AND INVESTMENT-1.87%
1,000,000 Merrill Lynch & Co., Inc., 5.59% 10-1-1996... A1+ 985,369 986,050
------------ ------------
CAPTIVE AUTO FINANCE-6.93%
2,600,000 Ford Motor Credit Corp., 5.53% 9-16-1996..... A1 2,563,476 2,569,580
1,100,000 General Motors Acceptance Corp., 5.56%
10-2-1996.................................. P1* 1,072,373 1,084,490
------------ ------------
3,635,849 3,654,070
------------ ------------
CAPTIVE EQUIPMENT FINANCE-12.58%
2,500,000 IBM Credit Corp., 5.52% 9-12-1996............ A1 2,464,946 2,472,250
2,400,000 John Deere Capital Corp., 5.48% 10-23-1996... A1 2,338,165 2,358,600
1,800,000 PACCAR Financial Co., 5.79% 7-19-1996........ A1 1,794,794 1,794,794
------------ ------------
6,597,905 6,625,644
------------ ------------
CONSUMER FINANCING-23.36%
2,500,000 American Express Credit Co., 5.42%
10-16-1996................................. A1 2,448,667 2,459,500
1,100,000 American General Finance Corp., 5.42%
7-17-1996.................................. A1+ 1,097,252 1,097,252
1,400,000 American General Finance Corp., 5.43%
7-17-1996.................................. A1 1,396,496 1,396,496
1,500,000 Beneficial Corp., 5.41% 8-16-1996............ A1 1,489,680 1,489,680
1,000,000 Beneficial Corp., 5.43% 8-2-1996............. A1 995,133 995,133
2,500,000 Commercial Credit Corp., 5.47% 8-7-1996...... A1 2,485,855 2,485,855
2,400,000 Household Finance Corp., 5.42% 8-12-1996..... A1 2,384,835 2,384,835
------------ ------------
12,297,918 12,308,751
------------ ------------
DIVERSIFIED FINANCE-14.66%
894,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.36%...................... A1+ 894,000 894,000
2,500,000 CIT Group Holdings, Inc., 5.41% 8-20-1996.... A1 2,481,335 2,481,335
2,500,000 General Electric Capital Corp., 5.49%
9-6-1996................................... A1+ 2,445,160 2,474,500
1,900,000 Prudential Funding Corp., 5.55% 9-16-1996.... A1+ 1,872,405 1,876,915
------------ ------------
7,692,900 7,726,750
------------ ------------
TOBACCO-4.73%
2,500,000 Philip Morris Cos., Inc., 5.42% 7-24-1996.... A1 2,491,150 2,491,150
------------ ------------
U.S. OTHER DIRECT FEDERAL OBLIGATIONS-4.56%
2,400,000 First Union Corp., 5.33% 7-2-1996............ A1 2,400,000 2,400,186
------------ ------------
UTILITIES-ELECTRIC-9.47%
2,500,000 Central & South West Credit Corp., 5.44%
7-26-1996.................................. A1 2,490,377 2,490,377
2,500,000 Wisconsin Electric Fuel Trust, 5.39%
7-9-1996................................... A1+ 2,496,700 2,496,700
------------ ------------
4,987,077 4,987,077
------------ ------------
TOTAL SHORT-TERM INVESTMENTS (COST:
$53,089,673)(A)............................ $53,202,351
------------
------------
</TABLE>
(a) At June 30, 1996, the cost of securities for federal income tax purposes
was $53,089,673 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 112,678
Unrealized depreciation..................................... 0
- -------------------------------------------------------------------------
Net unrealized appreciation................................. $ 112,678
- -------------------------------------------------------------------------
</TABLE>
(b) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(c) Commercial paper sold within the terms of a private placement memorandum,
exempt from registration under section 4(2) of the Securities Act of 1933,
as amended, and may be sold only to dealers in that program or other
"accredited investors". These securities have been determined to be liquid
under the guidelines established by the board of directors.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets.
* Moody's rating
19
<PAGE>
FORTIS SERIES FUND, INC.
U.S. GOVERNMENT SECURITIES SERIES
Schedule of Investments
June 30, 1996 (Unaudited)
U.S. GOVERNMENT SECURITIES-87.61%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Cost (a) Value (b)
------------ ------------- -------------
<C> <S> <C> <C>
FEDERAL HOME LOAN MORTGAGE CORPORATION-0.77%
MORTGAGE BACKED SECURITIES:
$ 1,176,803 9.50% 2016................................... $ 1,266,350 $ 1,249,979
39,163 11.25% 2015.................................. 42,602 43,636
------------- -------------
TOTAL FEDERAL HOME LOAN MORTGAGE
CORPORATION................................ 1,308,952 1,293,615
------------- -------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION-30.16%
MORTGAGE BACKED SECURITIES:
3,572,912 6.00% 2011................................... 3,500,768 3,377,517
2,908,977 6.50% 2010-2024.............................. 2,873,162 2,810,568
13,161,341 7.00% 2003-2026.............................. 12,952,150 12,727,777
3,976,756 7.25% 2005................................... 4,118,428 3,926,665
7,672,900 7.50% 2023-2026.............................. 7,687,056 7,574,525
305,642 8.50% 2017................................... 312,842 313,663
217,741 9.00% 2020-2021.............................. 217,555 226,994
1,422,787 9.75% 2020................................... 1,534,831 1,528,376
------------- -------------
33,196,792 32,486,085
------------- -------------
NOTES:
7,000,000 6.85% 2000................................... 7,000,000 6,968,101
6,000,000 7.40% 2004................................... 6,322,450 6,154,890
3,400,000 8.50% 2005................................... 3,537,063 3,554,771
------------- -------------
16,859,513 16,677,762
------------- -------------
REMIC-PAC'S:
1,285,850 7.50% Trust #1991-136G 2019.................. 1,333,466 1,289,436
------------- -------------
TOTAL FEDERAL NATIONAL MORTGAGE
ASSOCIATION................................ 51,389,771 50,453,283
------------- -------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION-8.65%
MORTGAGE BACKED SECURITIES:
1,755,434 7.00% 2026................................... 1,711,086 1,683,556
3,767,140 7.50% 2022................................... 3,774,203 3,711,778
3,309,513 9.00% 2020................................... 3,466,715 3,462,551
1,524,781 9.125% Fleet Mtg Securities, Ser 1989-3C1D
(GNMA Backed) 2018......................... 1,560,952 1,556,297
3,820,726 9.50% 2018-2021.............................. 3,967,418 4,059,928
------------- -------------
TOTAL GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION................................ 14,480,374 14,474,110
------------- -------------
OTHER DIRECT FEDERAL OBLIGATIONS-21.01%
FEDERAL HOME LOAN BANK:
11,000,000 6.125% 1996.................................. 10,939,531 11,006,974
23,700,000 7.31% 2004................................... 23,721,052 24,111,005
------------- -------------
TOTAL OTHER DIRECT FEDERAL OBLIGATIONS....... 34,660,583 35,117,979
------------- -------------
OTHER GOVERNMENT AGENCIES-1.50%
RESOLUTION FUNDING CORPORATION:
9,000,000 8.395% 2014 (c).............................. 2,258,278 2,509,281
------------- -------------
U.S. TREASURY SECURITIES-25.52%
BONDS:
12,675,000 8.125% 2019-2021............................. 15,024,245 14,273,661
------------- -------------
NOTES:
22,575,000 5.75% 2003................................... 21,200,180 21,481,490
890,000 6.25% 2001-2003.............................. 888,472 877,038
2,000,000 6.375% 2002.................................. 1,956,424 1,981,250
4,145,000 6.50% 2005................................... 4,011,817 4,082,825
------------- -------------
28,056,893 28,422,603
------------- -------------
TOTAL U.S. TREASURY SECURITIES............... 43,081,138 42,696,264
------------- -------------
TOTAL U.S. GOVERNMENT SECURITIES............. $ 147,179,096 $ 146,544,532
------------- -------------
------------- -------------
</TABLE>
20
<PAGE>
SHORT-TERM INVESTMENTS-12.16%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (b)
----------- -------------
<C> <S> <C>
BANKS-1.90%
$3,179,000 First Trust Money Market Variable Rate Time
Deposit, Current rate -- 5.13%............. $ 3,179,000
-------------
DIVERSIFIED FINANCE-0.19%
324,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.36%...................... 324,000
-------------
U.S. GOVERNMENT AGENCY-8.40%
6,000,000 Federal Home Loan Mortgage Corp., 5.38%,
7-24-1996.................................. 5,978,840
8,100,000 Federal National Mortgage Assoc., 5.38%,
7-26-1996.................................. 8,069,112
-------------
14,047,952
-------------
U.S. OTHER DIRECT FEDERAL OBLIGATIONS-1.67%
2,800,000 Federal Home Loan Bank, 5.36%, 7-12-1996..... 2,795,081
-------------
TOTAL SHORT-TERM INVESTMENTS................. 20,346,033
-------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$167,525,129) (A).......................... $ 166,890,565
-------------
-------------
</TABLE>
(a) At June 30, 1996, the cost of securities for federal income tax purposes
was $167,783,729 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 1,207,055
Unrealized depreciation..................................... (2,100,219)
- -------------------------------------------------------------------------
Net unrealized depreciation................................. $ (893,164)
- -------------------------------------------------------------------------
</TABLE>
(b) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(c) The interest rate disclosed for these securities represents the original
issue discount yields on the date of acquisition.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets.
21
<PAGE>
FORTIS SERIES FUND, INC.
DIVERSIFIED INCOME SERIES
Schedule of Investments
June 30, 1996 (Unaudited)
COMMON STOCKS-0.02%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
----- -------- -------------
<C> <S> <C> <C>
RETAIL-MISCELLANEOUS-0.02%
500 Petro PSC Properties, L.P. (Warrants) (a).... $18,285 $ 17,500
-------- -------------
</TABLE>
ASSET BACKED SECURITIES-28.17%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- ------------- ------------ -------------
<C> <S> <C> <C> <C>
COMMERCIAL LOANS-13.53%
$ 497,391 DLJ Mortgage Acceptance Corp., 7.28% Ser
1996-CF1 Class A-1A 3-13-2028 (f).......... AAA $ 501,119 $ 499,723
992,135 GS MSC II Protective Life Ser 1996-PL, 7.02%
3-1-2026................................... AAA* 992,071 983,764
992,910 J.P. Morgan Commercial Mortgage., 6.47%
1996-C2 Class A, 11-25-2027................ AAA 1,000,089 947,444
2,326,199 Merrill Lynch Mortgage Investors, Inc.,
6.7887% Variable Rate Ser 1995-C3 Cl A1
12-26-2025................................. AAA 2,312,199 2,284,178
1,217,614 Merrill Lynch Mortgage Investors, Inc.,
6.8151% Variable Rate Ser 1995-C2 Cl A1
6-15-2021.................................. Aaa* 1,236,068 1,218,231
1,400,000 Merrill Lynch Mortgage Investors, Inc., 7.42%
Ser 1996 Cl B 4-25-2028.................... AA 1,364,881 1,372,437
2,000,000 Nationslink Funding Corp., 7.515% Ser 1996-1
Class A2, 7-20-2005........................ AAA 2,002,487 2,015,000
996,220 Nationslink Funding Corp., 7.533% Ser 1996-1
Class A1, 9-20-2002........................ AAA 1,006,005 1,009,918
2,000,000 Nomura Asset Securities Corp., 6.68%
Congregate Care Pass Thru Certificate Ser
1993-1 Cl A3 12-15-2003.................... A 1,957,500 1,901,572
1,000,000 Resolution Trust Corp., 7.45% Mortgage Pass
Thru Certificate Ser 1994-C1 Cl A2C
6-25-2026.................................. AAA 1,026,767 1,001,250
1,000,000 Structured Asset Securities Corp., 5.944% Ser
96-CFL Cl A1C 2-25-2028.................... AAA 1,000,020 965,808
------------ -------------
14,399,206 14,199,325
------------ -------------
MANUFACTURED HOMES-6.70%
1,025,075 CIT Group Manufactured Housing Contract,
7.70% Sr Sub Pass Thru Certificate Ser
1995-1 Cl A 8-15-2020...................... Aaa* 1,024,882 1,044,459
1,500,000 Green Tree Financial Corp., 7.65% Sr Sub Pass
Thru Certificate Ser 1994-1 Cl A5
4-15-2019.................................. Aa2* 1,494,141 1,475,922
2,000,000 Green Tree Financial Corp., 8.35% Sr Sub Pass
Thru Certificate Ser 1994-7 Cl A4
3-15-2020.................................. Aaa* 1,997,500 2,109,958
2,500,000 Oakwood Mortgage Investors, Inc., 7.10% Ser
1995-A Cl A3 9-15-2020..................... AAA 2,497,656 2,403,152
------------ -------------
7,014,179 7,033,492
------------ -------------
MISCELLANEOUS-0.94%
978,752 Vanderbilt Mortgage & Finance, Inc., 7.00%
Mfg Housing Contract Ser 1994-A Cl A1
7-10-2019.................................. AA 978,141 985,945
------------ -------------
MULTI-FAMILY LOANS-5.75%
1,500,000 DLJ Mortgage Acceptance Corp., 8.80%
Multifamily Mortgage Pass Thru Certificate
Ser 1993-12 Class B1 9-18-2003............. NR* 1,473,750 1,506,339
2,150,000 DLJ Mtg Acceptance Corp., 8.50% Multifamily
Mtg Pass Thru Certificate Ser 1994-4 Cl A2
4-18-2001.................................. A 2,191,912 2,227,239
478,093 Fund America Structured Transactions, L.P.,
8.231% Collateralized Note, Ser 1996-1 Cl A
PO 1-1-2033 (f) (g)........................ Baa* 343,466 334,740
2,000,000 Paine Webber Mortgage Acceptance Corp. IV,
6.70% Ser 1995-M1 1-15-2007 (f)............ NR* 1,972,832 1,962,500
------------ -------------
5,981,960 6,030,818
------------ -------------
WHOLE LOAN RESIDENTIAL-1.25%
1,309,057 Residential Resources, Inc., 9.50% Ser 14
Class A Busted Pac 12-1-2018............... AAA 1,328,692 1,312,721
------------ -------------
TOTAL ASSET BACKED SECURITIES................ $29,702,178 $ 29,562,301
------------ -------------
------------ -------------
</TABLE>
CORPORATE BONDS-INVESTMENT GRADE-26.59%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- ------------- ------------ -------------
<C> <S> <C> <C> <C>
AEROSPACE AND EQUIPMENT-0.95%
$1,000,000 Lockheed Martin Corp.,7.25% Note 5-15-2006... BBB+ $ 999,067 $ 992,610
------------ -------------
BANKS-9.17%
1,000,000 Advanta National Bank, 6.45% Note
10-30-2000................................. BBB 998,889 972,055
2,000,000 Capital One Bank, 6.83% Med Term Note
8-16-1999.................................. Baa3* 2,000,000 1,992,558
1,500,000 Chase Commercial Mortgage Securities
Corp.,7.60% Ser 1996-1 Class A-1........... AAA 1,517,145 1,517,145
1,000,000 Fleet Financial Group, Inc., 7.125% Sub Note
4-15-2006.................................. BBB+ 985,624 976,533
1,650,000 Mortgage Capital Funding, Inc., Ser 1996-MCI-
B 7.90% 7-1-2026........................... AA+ 1,667,016 1,667,016
</TABLE>
22
<PAGE>
CORPORATE BONDS-INVESTMENT GRADE-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- ------------- ------------ -------------
<C> <S> <C> <C> <C>
$2,500,000 Nationsbank Corp., 7.75% Sub Note
8-15-2015.................................. A- $ 2,500,000 $ 2,499,200
------------ -------------
9,668,674 9,624,507
------------ -------------
BROKERAGE AND INVESTMENT-4.76%
1,000,000 Donaldson Lufkin Jenrette Securities Corp.,
5.625% Med Term Note 2-15-2016............. A- 998,080 941,206
1,500,000 Lehman Brothers Holdings, Inc., 8.75% Note
5-15-2002.................................. A 1,683,377 1,600,716
2,000,000 Paine Webber Group, 6.25% Note 6-15-1998..... BBB+ 2,019,039 1,978,562
500,000 Salomon, Inc., 6.75% Sr Note 2-15-2003....... BBB 499,032 478,907
------------ -------------
5,199,528 4,999,391
------------ -------------
CHEMICALS-0.71%
750,000 Methanex Corp., 7.40% Note 8-15-2002......... BBB+ 746,833 741,623
------------ -------------
ELECTRONIC-MISCELLANEOUS-0.48%
500,000 Philips Electronics NV, 7.20% Note
6-1-2026................................... BBB+ 498,871 497,510
------------ -------------
FINANCE COMPANIES-0.96%
1,000,000 Aristar, Inc., 7.25% Note 6-15-2001.......... A- 998,430 1,011,871
------------ -------------
FOREIGN-GOVERNMENT AGENCIES-3.03%
3,000,000 Hydro-Quebec, 8.05% Deb 7-7-2024............. A+ 3,298,830 3,185,067
------------ -------------
INDUSTRIAL-0.93%
1,000,000 Olsten Corp., 7.00% Sr Note 3-15-2006........ A- 994,959 972,027
------------ -------------
MEDIA-1.01%
1,000,000 News America Holdings, Inc., 8.875% Sr Note
4-26-2023.................................. BBB 991,852 1,058,297
------------ -------------
PAPER-0.45%
520,000 Champion International, Inc., 7.35% Deb
11-1-2025.................................. BBB 517,150 474,334
------------ -------------
REAL ESTATE-0.95%
1,000,000 MEPC Finance, Inc., 7.50% Guaranteed Note
5-1-2003................................... A 998,729 1,001,426
------------ -------------
SUPRANATIONAL-0.93%
1,000,000 Corp Andina De Formento, 7.10% Yankee Bond
2-1-2003................................... BBB 999,371 973,999
------------ -------------
TELECOMMUNICATIONS-0.90%
1,000,000 360 Communications Corp., 7.50% Sr Note
3-1-2006................................... BBB- 997,740 948,870
------------ -------------
WASTE DISPOSAL-1.36%
1,500,000 Browning-Ferris, Inc., 7.40% Secured Note
9-15-2035.................................. A 1,491,975 1,425,429
------------ -------------
TOTAL CORPORATE BONDS - INVESTMENT GRADE..... $28,402,009 $ 27,906,961
------------ -------------
------------ -------------
</TABLE>
CORPORATE BONDS-NON-INVESTMENT GRADE-16.75%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- ------------- ------------ -------------
<C> <S> <C> <C> <C>
BROADCASTING-0.92%
$1,000,000 Sinclair Broadcasting, Inc., 10.00% Sr Sub
Note 9-30-2005............................. B $ 1,000,000 $ 970,000
------------ -------------
CABLE TELEVISION-3.10%
1,000,000 Cablevision Systems, Corp., 9.875% Sr Sub
Note 5-15-2006............................. B 968,438 968,750
500,000 Century Communications, Inc., 9.50% Sr Note
3-1-2005................................... BB- 520,724 487,500
500,000 Comcast Corp., 9.125% Sr Sub Note
10-15-2006................................. B+ 517,023 472,500
556,817 Falcon Holding Group L.P., 11.00% Sr Sub Note
Ser B 9-15-2003 (Interest is
Payable-in-Kind)........................... NR* 459,220 506,701
500,000 Groupe Videotron, 10.625% Sr Note
2-15-2005.................................. BB+ 526,223 523,750
500,000 Telewest plc, 11.00% Sr Disc Deb
10-1-2007(Zero coupon until 10-1-2000,
thereafter 11.00%) (e)..................... BB 318,383 295,000
------------ -------------
3,310,011 3,254,201
------------ -------------
CHEMICALS-1.88%
1,000,000 Arcadian Partners L.P., 10.75% Sr Note Ser B
5-1-2005................................... BB- 997,669 1,081,250
500,000 Indspec Chemical Corp., 12.618% Sr Sub Disc
Note Ser B 12-1-2003 (Zero Coupon until
12-1-1998, thereafter 11.50%).............. B- 333,515 425,000
500,000 Lyondell Petrochemical, 6.50% Note
2-15-2006.................................. BBB- 498,841 464,396
------------ -------------
1,830,025 1,970,646
------------ -------------
</TABLE>
23
<PAGE>
FORTIS SERIES FUND, INC.
DIVERSIFIED INCOME SERIES (CONTINUED)
Schedule of Investments
June 30, 1996 (Unaudited)
CORPORATE BONDS-NON-INVESTMENT GRADE-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- ------------- ------------ -------------
<C> <S> <C> <C> <C>
COSMETICS AND SUNDRIES-0.48%
$ 500,000 Revlon Consumer Products Corp., 10.50% Sr Sub
Note 2-15-2003............................. B- $ 509,063 $ 501,250
------------ -------------
FINANCE COMPANIES-0.95%
1,000,000 Mesa Operating Co., 10.625% Sr Note
7-1-2006................................... B 1,010,000 1,000,000
------------ -------------
FOOD-MISCELLANEOUS-0.98%
1,000,000 Envirodyne Industries, Inc., 12.00% First
Priority Sr Secured Note 6-15-2000......... B+ 1,000,000 1,032,500
------------ -------------
HEALTH CARE SERVICES-0.48%
500,000 Tenet Healthcare Corp., 8.625% Sr Note
12-1-2003.................................. BB 498,434 505,000
------------ -------------
HOTEL AND MOTEL-0.44%
500,000 HMC Acquistion Properties, Inc., 9.00% Sr
Note 12-15-2007............................ NR 500,000 458,750
------------ -------------
LEISURE TIME-AMUSEMENTS-1.18%
500,000 Capital Gaming International, Inc., 11.50%
Secured Note 2-1-2001 (a).................. Caa* 350,000 232,500
500,000 Showboat, Inc., 9.25% First Mortgage Bond
5-1-2008................................... BB- 506,217 502,500
500,000 Trump Atlantic City Associates, 11.25% First
Mortgage Bond 5-1-2006..................... BB- 500,000 502,500
------------ -------------
1,356,217 1,237,500
------------ -------------
METALS-MINING AND MISCELLANEOUS-1.07%
1,000,000 Renco Metals, Inc., 12.00% Sr Note
7-15-2000.................................. B 1,082,500 1,125,000
------------ -------------
STEEL AND IRON-0.51%
500,000 AK Steel Corp., 10.75% Sr Note 4-1-2004...... BB 546,930 540,000
------------ -------------
TECHNOLOGY-0.98%
1,000,000 Computervision Corp., 11.375% Sr Sub Note
8-15-1999.................................. B- 1,033,750 1,030,000
------------ -------------
TELECOMMUNICATIONS-3.46%
500,000 A+ Network, Inc., 11.875% Sr Sub Note
11-1-2005.................................. CCC+ 509,725 517,500
500,000 Arch Communications Group, Inc., 10.72% Sr
Disc Note 3-15-2008 (Zero coupon until
3-15-2001, thereafter 10.875%) (e)......... B- 307,074 257,500
1,000,000 NextLink Communications, L.L.C., 12.50% Sr
Note 4-15-2006 (f)......................... NR 1,000,000 995,000
1,000,000 Paging Network, Inc., 10.125% Sr Sub Note
8-1-2007................................... B 1,075,040 985,000
1,500,000 Teleport Communications, 11.125% Sr Disc Deb
7-1-2007 (Zero coupon until 7-1-2001,
thereafter 11.125%) (e).................... B 873,225 873,225
------------ -------------
3,765,064 3,628,225
------------ -------------
TOBACCO-0.32%
400,000 Liggett Group, Inc., 11.50% Secured Note Ser
B 2-1-1999................................. NR 288,375 332,000
------------ -------------
TOTAL CORPORATE BONDS - NON-INVESTMENT
GRADE...................................... $17,730,369 $ 17,585,072
------------ -------------
------------ -------------
</TABLE>
U.S. GOVERNMENT SECURITIES-29.27%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Cost (b) Value (c)
----------- ------------- -------------
<C> <S> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION-15.25%
MORTGAGE BACKED SECURITIES:
$1,984,951 6.00% 2011................................... $ 1,944,868 $ 1,876,398
1,896,226 6.50% 2010................................... 1,879,338 1,832,228
5,733,853 7.00% 2025-2026.............................. 5,636,484 5,516,993
1,860,679 7.50% 2022-2026.............................. 1,902,333 1,836,823
------------- -------------
11,363,023 11,062,442
------------- -------------
NOTE:
2,000,000 6.85% 2000................................... 2,000,000 1,990,886
------------- -------------
REMIC-PAC'S:
3,000,000 7.00% Trust #1192-49H Busted PAC 2020........ 2,892,344 2,954,367
------------- -------------
TOTAL FEDERAL NATIONAL MORTGAGE
ASSOCIATION................................ 16,255,367 16,007,695
------------- -------------
</TABLE>
24
<PAGE>
U.S. GOVERNMENT SECURITIES-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Cost (b) Value (c)
----------- ------------- -------------
<C> <S> <C> <C>
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION-9.55%
MORTGAGE BACKED SECURITIES:
$1,003,105 7.00% 2026................................... $ 977,763 $ 962,032
2,260,284 7.50% 2022................................... 2,264,522 2,227,067
3,564,091 9.00% 2020................................... 3,733,385 3,728,901
1,440,483 9.125% Fleet Mortgage Securities Ser 1989-3
Class D 2018 (GNMA Backed)................. 1,464,048 1,470,256
1,538,059 9.50% 2019................................... 1,596,279 1,632,182
------------- -------------
TOTAL GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION................................ 10,035,997 10,020,438
------------- -------------
OTHER DIRECT FEDERAL OBLIGATIONS-3.43%
FEDERAL HOME LOAN BANK:
750,000 6.125% Global Registered Note 1996........... 745,899 750,476
2,800,000 7.31% 2004................................... 2,810,063 2,848,558
------------- -------------
TOTAL OTHER DIRECT FEDERAL OBLIGATIONS....... 3,555,962 3,599,034
------------- -------------
U.S. TREASURY SECURITIES-1.04%
BONDS:
240,000 8.125% 2019.................................. 261,095 269,175
------------- -------------
NOTES:
610,000 6.00% 1998................................... 609,728 608,665
220,000 6.25% 2001................................... 215,965 217,800
------------- -------------
825,693 826,465
------------- -------------
TOTAL U.S. TREASURY SECURITIES............... 1,086,788 1,095,640
------------- -------------
TOTAL U.S. GOVERNMENT SECURITIES............. 30,934,114 30,722,807
------------- -------------
TOTAL LONG-TERM INVESTMENTS.................. $ 106,786,955 $ 105,794,641
------------- -------------
------------- -------------
</TABLE>
SHORT-TERM INVESTMENTS-2.96%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
----------- -------------
<C> <S> <C>
BANKS-2.57%
$2,701,000 First Trust Money Market Variable Rate Time
Deposit, Current rate -- 5.13%............. $ 2,701,000
-------------
DIVERSIFIED FINANCE-0.39%
410,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.36%...................... 410,000
-------------
TOTAL SHORT-TERM INVESTMENTS................. 3,111,000
-------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$109,897,955)(B)........................... $ 108,905,641
-------------
-------------
</TABLE>
(a) Presently non-income producing. For corporate debt securities, items
identified are in default as to payment of interest and/or principal.
(b) At June 30, 1996, the cost of securities for federal income tax purposes
was $109,900,731, and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation........................... $ 857,598
Unrealized depreciation........................... (1,852,688)
---------------------------------------------------------------
Net unrealized depreciation....................... $ (995,090)
---------------------------------------------------------------
</TABLE>
(c) See Note 1 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 6.17% of net assets as of June 30, 1996.
(e) The interest rate disclosed for these securities represents the original
issue discount yields on the date of acquisition.
(f) Securities sold within the terms of private placement memorandums, 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 other
"Accredited Investors". These investments have been identified by portfolio
management as illiquid securities. The portfolio entered into the following
section 144A security transactions: On September 13, 1995 the portfolio
acquired $2,000,000 par of Paine Webber Mortgage Acceptance Corp. IV due
2007 with a cost basis of $1,972,832. On March 07, 1996 the portfolio
acquired $500,000 par of Fund America Structured Transactions due 2033 with
a cost basis of $343,466. On April 19, 1996 the portfolio acquired
$1,000,000 par of Nextlink Communications, L.L.C., due 2006 with a cost
basis of $1,000,000. The value of these securities at June 30, 1996, is
$3,791,963 which represents 3.61% of net assets.
(g) The interest rate disclosed for principal only strips represent effective
yields at June 30, 1996, based upon the estimated timing of future cash
flows. This investment has been identified by portfolio management as an
illiquid security. The aggregate value of this security at June 30, 1996 is
$334,740 which represents .32% of total net assets.
* Moody's Rating.
25
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL BOND SERIES
Schedule of Investments
June 30,1996 (Unaudited)
CORPORATE BONDS-INVESTMENT GRADE-75.07%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
Principal & Poor's Market
Amount (d) Rating Cost (a)(d) Value (b)(d)
------------ ------------- ------------ ------------
<C> <S> <C> <C> <C>
AUSTRIA-4.24%
700,000 Republic of Austria (U.S. Dollar), 7.875%
3-26-2002.................................. AAA $ 742,415 $ 728,000
------------ ------------
CANADA-12.94%
2,200,000 Canadian Government (Canadian Dollar), 7.25%
6-1-2003................................... AAA 1,593,495 1,600,679
800,000 Canadian Government (Canadian Dollar), 8.50%
3-1-2000................................... NR 619,950 619,001
------------ ------------
2,213,445 2,219,680
------------ ------------
DENMARK-10.62%
4,050,000 Kingdom of Denmark (Danish Krone), 8.00%
11-15-2001................................. NR 736,676 737,801
6,000,000 Kingdom of Denmark (Danish Krone), 8.00%
5-15-2003.................................. NR 1,064,377 1,082,809
------------ ------------
1,801,053 1,820,610
------------ ------------
FRANCE-3.12%
2,500,000 Electricite de France (French Franc), 8.60%
2-15-2000.................................. Aaa* 522,294 534,276
------------ ------------
GERMANY-16.54%
950,000 Bayerische Landesbk Giro (German
Deutschemark), 6.75% 8-3-2005.............. NR 669,476 627,867
880,000 Deutsche Ausgleichsbank (German
Deutschemark), 6.375% 11-7-2002............ AAA 624,821 582,181
1,500,000 Kreditanstalt Fuer Wiederaufbau Int'l Finance
Inc. (German Deutschemark) ,7.50%
1-24-2000.................................. AAA 1,123,463 1,054,437
860,000 Landeskreditbank Baden-Wurttemberg (German
Deutschemark), 6.625% 8-20-2003............ AAA 614,686 572,904
------------ ------------
3,032,446 2,837,389
------------ ------------
JAPAN-6.96%
875,000 Export-Import Bank of Japan (German
Deutschemark), 5.875% 12-17-2003........... AAA 595,157 555,304
18,000,000 International Bank Reconstruction &
Development (Japanese Yen), 4.50%
6-20-2000.................................. Aaa* 185,544 179,189
18,000,000 International Bank Reconstruction &
Development (Japanese Yen), 5.25%
3-20-2002.................................. AAA 192,860 186,985
25,000,000 Japan Development Bank (Japanese Yen), 6.50%
9-20-2001.................................. Aaa* 284,197 272,522
------------ ------------
1,257,758 1,194,000
------------ ------------
SPAIN-2.00%
40,000,000 Spanish Government (Spanish Pesata), 10.50%
10-30-2003................................. NR 337,031 342,470
------------ ------------
SWEDEN-1.76%
2,300,000 Swedish Government (Swedish Krona), 6.00%
2-9-2005................................... Aa1* 297,295 300,459
------------ ------------
UNITED KINGDOM-12.92%
130,000 British Gas plc (British Pound Sterling),
10.875% 3-26-2001.......................... AA- 221,476 224,214
650,000 United Kingdom Treasury (British Pound
Sterling), 8.00% 6-10-2003................. NR 1,020,216 1,031,433
600,000 United Kingdom Treasury (British Pound
Sterling), 8.00% 12-7-2000................. NR 939,123 960,249
------------ ------------
2,180,815 2,215,896
------------ ------------
UNITED STATES-3.97%
650,000 General Electric Capital Corp., 8.125%
2-23-2007.................................. AAA 710,438 680,875
------------ ------------
TOTAL CORPORATE BONDS - INVESTMENT GRADE..... $13,094,990 $12,873,655
------------ ------------
------------ ------------
</TABLE>
26
<PAGE>
U.S. GOVERNMENT SECURITIES-16.84%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount (d) Cost (a)(d) Value (b)(d)
------------ ------------ ------------
<C> <S> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION-2.13%
NOTES:
40,000,000 2.00% 1999 (Japanese Yen).................... $ 377,251 $ 365,376
------------ ------------
U.S. TREASURY SECURITIES-2.61%
BONDS:
400,000 8.125% 2019.................................. 459,855 448,624
------------ ------------
U.S. TREASURY SECURITIES-12.10%
NOTES:
1,990,000 7.75% 2000................................... 2,134,105 2,074,575
------------ ------------
TOTAL U.S. TREASURY SECURITIES............... 2,593,960 2,523,199
------------ ------------
TOTAL U.S. GOVERNMENT SECURITIES............. 2,971,211 2,888,575
------------ ------------
------------ ------------
TOTAL LONG-TERM INVESTMENTS.................. $16,066,201 $15,762,230
------------ ------------
------------ ------------
</TABLE>
SHORT-TERM INVESTMENTS-5.67%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal
Amount Market
(d) Value (b)(d)
--------- ------------
<C> <S> <C>
GOVERNMENT SECURITIES-4.58%
$785,000 First American Institutional Government Fund,
Current rate -- 5.43%...................... $ 785,000
------------
BANKS-1.09%
186,702 First Trust Money Market Variable Rate Time
Deposit, Current rate -- 5.13%............. 186,702
------------
TOTAL SHORT-TERM INVESTMENTS................. 971,702
------------
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$17,037,903)(A)............................ $16,733,932
------------
------------
</TABLE>
(a) At June 30, 1996, the cost of securities for federal income tax purposes
was $17,037,903 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation........................... $ 82,407
Unrealized depreciation........................... (386,378)
---------------------------------------------------------------
Net unrealized depreciation....................... $ (303,971)
---------------------------------------------------------------
</TABLE>
(b) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(c) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets.
(d) Cost and market value is stated in U.S. dollars; principal amount is stated
in the currency indicated.
* Moody's Rating
27
<PAGE>
FORTIS SERIES FUND, INC.
HIGH YIELD SERIES
Schedule of Investments
June 30, 1996 (Unaudited)
COMMON STOCKS-0.30%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
------- --------- ------------
<C> <S> <C> <C>
APPAREL-0.00%
250 Hosiery Corp. of America, Class A (a) (f).... $ 4,230 $ 1,250
--------- ------------
CABLE TELEVISION-0.05%
2,500 American Telecasting, Inc. (Warrants) (a).... 5,000 15,625
500 People's Choice T.V. Corp. (Warrants) (a)
(f)........................................ 5,660 1,250
--------- ------------
10,660 16,875
--------- ------------
CONSUMER GOODS-0.00%
200 Chattem, Inc. (Warrants) (a) (f)............. 2,546 500
--------- ------------
CONTAINERS AND PACKAGING-0.00%
500 RXI Holdings, Inc. (Warrants) (a) (f)........ 9,760 875
--------- ------------
MACHINERY-0.02%
250 MVE, Inc. (Warrants) (a)..................... 1,719 7,500
750 Terex Corp. (Rights) (a)..................... 1,875 75
--------- ------------
3,594 7,575
--------- ------------
RETAIL-GROCERY-0.04%
1,651 Grand Union Co. (a).......................... 99,110 10,731
--------- ------------
RETAIL-MISCELLANEOUS-0.03%
250 Petro PSC Properties, L.P. (Warrants) (a).... 9,143 8,750
--------- ------------
TELECOMMUNICATIONS-0.16%
1,000 American Communications Services, Inc.
(Warrants) (a) (f)......................... 45,700 52,500
--------- ------------
TOTAL COMMON STOCKS.......................... $184,743 $ 99,056
--------- ------------
--------- ------------
</TABLE>
CORPORATE BONDS-NON-INVESTMENT GRADE-90.79%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- ------------- ------------ ------------
<C> <S> <C> <C> <C>
AEROSPACE AND EQUIPMENT-0.81%
$ 250,000 K & F Industries, Inc., 11.875% Sr Secured
Note 12-1-2003............................. B+ $ 235,500 $ 268,125
------------ ------------
AIRLINES-1.51%
500,000 U.S. Air, Inc., 10.375% Pass Thru Certificate
3-1-2013................................... B+ 466,250 498,750
------------ ------------
BROADCASTING-3.73%
250,000 Commodore Media, Inc., 12.71% Sr Sub Note
5-1-2003................................... B3* 232,934 253,125
250,000 EZ Communications, Inc., 9.75% Sr Sub Note
12-1-2005.................................. B- 252,451 237,500
250,000 SFX Broadcasting, 10.75% Sr Sub Note
5-15-2006 (f).............................. B- 250,000 248,750
250,000 Sinclair Broadcasting, Inc., 10.00% Sr Sub
Note 9-30-2005............................. B 250,000 242,500
250,000 Spanish Broadcasting Systems, Inc., 11.52% Sr
Note 6-15-2002 (7.50% coupon through
6/15/1997, 12.50% thereafter) (e).......... B 249,622 247,500
------------ ------------
1,235,007 1,229,375
------------ ------------
CABLE TELEVISION-13.68%
500,000 Adelphia Communications Corp., 12.50% Sr Note
5-15-2002.................................. B 518,522 507,500
537,895 American Telecasting, Inc., 14.14% Sr Sub
Disc Note 6-15-2004 (Zero coupon until
6-15-1999, thereafter 14.50%) (e).......... CCC+ 341,568 373,837
500,000 Bell Cablemedia plc, 11.875% Sr Disc Note
9-15-2005 (Zero coupon until 9-15-2000,
thereafter 11.875%) (e).................... BB- 341,233 305,000
500,000 Cablevision Systems, Corp., 9.875% Sr Sub
Note 5-15-2006............................. B 484,062 484,375
250,000 Century Communications, Inc., 9.50% Sr Note
3-1-2005................................... BB- 260,362 243,750
253,248 Falcon Holding Group, L.P., 11.00% Sr Sub
Note Ser B 9-15-2003 (Interest is
Payable-in-Kind)........................... NR 221,111 230,454
500,000 Groupe Videotron, 10.625% Sr Note
2-15-2005.................................. BB+ 526,223 523,750
500,000 Marcus Cable Operating Co., 11.27% Sr Disc
Note 8-1-2004 (Zero coupon until 8-1-1999,
thereafter 13.50%) (e)..................... B 371,114 357,500
500,000 People's Choice T.V. Corp., 13.33% Sr Disc
Note 6-1-2004 (Zero coupon until 6-1-2000,
thereafter 13.125%) (e).................... CCC+ 295,184 285,000
500,000 Telewest plc, 11.63% Sr Disc Deb 10-1-2007
(Zero coupon until 10-1-2000, thereafter
11.00%) (e)................................ BB 309,748 295,000
1,000,000 United International Holdings, Inc., 14.00%
Sr Sec Disc Note Ser B 11-15-1999 (e)...... B- 647,996 655,000
</TABLE>
28
<PAGE>
CORPORATE BONDS-NON-INVESTMENT GRADE-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- ------------- ------------ ------------
<C> <S> <C> <C> <C>
$ 375,000 Videotron Holdings plc, 11.67% Sr Disc Note
8-15-2005 (Zero coupon until 8-15-2000,
thereafter 11.00%) (e)..................... B+ $ 228,849 $ 243,750
------------ ------------
4,545,972 4,504,916
------------ ------------
CHEMICALS-3.16%
250,000 Acetex Corp., 9.75% Sr Secured Note
10-1-2003.................................. BB- 259,382 246,250
250,000 Arcadian Partners L.P., 10.75% Sr Note Ser B
5-1-2005................................... BB- 275,873 270,312
250,000 LaRoche Industries, Inc., 13.00% Sr Sub Note
8-15-2004.................................. B 261,562 268,125
250,000 NL Industries, Inc., 11.75% Sr Secured Note
10-15-2003................................. B 257,774 255,000
------------ ------------
1,054,591 1,039,687
------------ ------------
CONSUMER GOODS-0.45%
250,000 International Semitech, Inc., 12.67% Sr
Secured Note 8-15-2003 (Zero coupon until
8-15-2000, thereafter 11.50%) (e).......... B+ 145,000 145,000
------------ ------------
CONTAINERS AND PACKAGING-3.43%
500,000 RXI Holdings, Inc., 14.00% Sr Secured Note
7-15-2002.................................. B- 495,299 370,000
250,000 Silgan Corp., 11.75% Sr Sub Note 6-15-2002... B- 263,750 258,125
500,000 Silgan Holdings Corp., 13.25% Sr Disc Deb
12-15-2002................................. B- 504,590 502,500
------------ ------------
1,263,639 1,130,625
------------ ------------
COSMETICS AND SUNDRIES-0.76%
250,000 Revlon Consumer Products, 10.50% Sr Sub Note
2-15-2003.................................. B- 252,500 250,625
------------ ------------
ENERGY-2.30%
250,000 Benton Oil & Gas, 11.625% Sr Note 5-1-2003
(f)........................................ B 250,000 257,500
500,000 Mesa Capital Corp., 12.75% Secured Note
6-30-1998.................................. Caa* 501,476 500,000
------------ ------------
751,476 757,500
------------ ------------
FINANCE COMPANIES-1.91%
125,000 Homeside, Inc., 11.25% Sr Secured Second
Priority Note 5-15-2003 (f)................ B+ 125,000 129,375
500,000 Mesa Operating Co., 10.625% Sr Note
7-1-2006................................... B 500,000 500,000
------------ ------------
625,000 629,375
------------ ------------
FOOD-MISCELLANEOUS-0.78%
250,000 Envirodyne Industries, Inc., 12.00% First
Priority Sr Secured Note 6-15-2000......... B+ 248,125 258,125
------------ ------------
FOREST PRODUCTS-1.43%
500,000 Repap New Brunswick, 10.625% Sr Secured
Second Priority Note 4-15-2005............. B+ 473,841 471,250
------------ ------------
HEALTH CARE SERVICES-3.16%
500,000 Abbey Healthcare Group, 9.50% Sr Sub Note
11-1-2002.................................. BB+ 526,250 512,500
500,000 Tenet Healthcare Corp., 10.125% Sr Sub Note
3-1-2005................................... B+ 555,462 527,500
------------ ------------
1,081,712 1,040,000
------------ ------------
HOTEL AND MOTEL-1.44%
500,000 HMH Properties, Inc., 9.50% Sr Note
5-15-2005.................................. BB- 483,884 475,000
------------ ------------
HOUSING-2.95%
500,000 MDC Holdings, Inc., 11.125% Note
12-15-2003................................. B 480,584 470,000
500,000 NVR, Inc., 11.00% Sr Note 4-15-2003.......... B 500,937 500,000
------------ ------------
981,521 970,000
------------ ------------
INDUSTRIAL-1.53%
500,000 IMC Fertilizer, Inc., 9.45% Sr Deb
12-15-2011................................. BB- 513,497 505,000
------------ ------------
LEISURE TIME-AMUSEMENTS-6.95%
150,000 Boomtown, Inc., 11.50% First Mtg Bond
11-1-2003.................................. B 148,167 144,563
250,000 Capital Gaming International, Inc., 11.50%
Secured Note 2-1-2001 (a).................. Caa* 197,500 116,250
500,000 Players International, Inc., 10.875% Sr Note
4-15-2005.................................. BB 512,359 506,250
500,000 Showboat, Inc., 9.25% First Mtg Bond
5-1-2008................................... BB- 512,405 502,500
500,000 Trump Atlantic City Associates, 11.25% First
Mtg Bond 5-1-2006.......................... BB- 500,000 502,500
500,000 Trump Castle Funding, Inc., 11.75% First Mtg
Bond 11-15-2003............................ Caa* 384,766 517,500
------------ ------------
2,255,197 2,289,563
------------ ------------
</TABLE>
29
<PAGE>
FORTIS SERIES FUND, INC.
HIGH YIELD SERIES (CONTINUED)
Schedule of Investments
June 30, 1996 (Unaudited)
CORPORATE BONDS-NON-INVESTMENT GRADE-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- ------------- ------------ ------------
<C> <S> <C> <C> <C>
MACHINERY-0.79%
$ 250,000 MVE, Inc., 12.50% Sr Secured Note
2-15-2002.................................. B+ $ 248,516 $ 260,000
------------ ------------
METALS-MINING AND MISCELLANEOUS-5.25%
400,000 Haynes International, Inc., 11.25% Sr Secured
Note Ser A 6-15-1998....................... CCC+ 372,250 414,000
250,000 Haynes International, Inc., 13.50% Sr Sub Deb
8-15-1999.................................. CCC- 157,500 253,750
500,000 Renco Metals, Inc., 11.50% Sr Note
7-1-2003................................... B 500,000 500,000
500,000 Renco Metals, Inc., 12.00% Sr Note
7-15-2000.................................. B 505,312 562,500
------------ ------------
1,535,062 1,730,250
------------ ------------
PUBLISING-2.41%
1,000,000 Marvel (Parent) Holdings, Inc., 14.46% Sr
Secured Zero Coupon Discount Note 4-15-1998
(e)........................................ B- 780,973 792,500
------------ ------------
RETAIL-DEPARTMENT STORES-1.56%
500,000 Specialty Retailers, Inc., 10.00% Sr Note
8-15-2000.................................. B+ 498,815 515,000
------------ ------------
RETAIL-GROCERY-3.61%
250,000 Cumberland Farms, Inc., 10.50% Sr Note
10-1-2003.................................. NR 238,970 238,750
573,788 Farm Fresh Holdings Corp., 14.25% Sr
Pay-in-Kind 10-1-2002 (Interest is PIK thru
10-1-1997) (f)............................. CCC+ 230,350 164,073
532,278 Kash N Karry Corp., 11.50% Sr Note
2-1-2003................................... B- 495,534 533,609
250,000 Smith's Food & Drug Centers, Inc., 11.25% Sr
Sub Note 5-15-2007......................... B- 250,000 253,125
------------ ------------
1,214,854 1,189,557
------------ ------------
RETAIL-LEISURE TIME-0.76%
250,000 Guitar Centers, Inc., 11.00% Sr Note 7-1-2006
(f)........................................ B 250,000 250,000
------------ ------------
RETAIL-MISCELLANEOUS-1.11%
325,000 Thrifty Payless, Inc., 12.25% Sr Sub Note
4-15-2004.................................. B- 334,531 364,000
------------ ------------
SHIP BUILDING, SHIPPING-0.76%
250,000 OMI Corp., 10.25% Sr Note 11-1-2003.......... B- 245,628 250,000
------------ ------------
STEEL AND IRON-1.56%
250,000 AK Steel Corp., 10.75% Sr Note 4-1-2004...... BB 268,750 270,000
250,000 NS Group, Inc., 13.50% Sr Secured Note
7-15-2003.................................. NR 241,304 242,188
------------ ------------
510,054 512,188
------------ ------------
TECHNOLOGY-1.56%
500,000 Computervision Corp., 11.375% Sr Sub Note
8-15-1999.................................. B- 449,562 515,000
------------ ------------
TELECOMMUNICATIONS-19.61%
500,000 A+ Network, Inc., 11.875% Sr Sub Note
11-1-2005.................................. CCC+ 503,117 517,500
750,000 American Communications Services, Inc.,
13.00% Sr Disc Note 11-1-2005 (Zero coupon
until 11-1-2000, thereafter 13.00%) (e).... NR 402,484 416,250
125,000 Arch Communications Group, Inc., 10.72% Sr
Disc Note 3-15-2008 (Zero coupon until
3-15-2001, thereafter 10.875%) (e)......... B- 76,920 64,375
500,000 Cellular Communications, Inc., 11.96% Zero
Coupon Note 8-15-2000 (e).................. CCC+ 310,111 310,000
500,000 Echostar Communications, Inc., 11.34% Sr Disc
Note 6-1-2004 (Zero Coupon thru 6/1/1999,
thereafter 12.875%) (e).................... B 377,272 362,500
500,000 Fonorola, Inc., 12.50% Sr Secured Note
8-15-2002.................................. B+ 518,761 540,000
100,000 GST Telecommunications, Inc., 13.875% Sr
Conv. Disc Note 12-15-2005 (Zero coupon
until 12-15-2000, thereafter 13.875%) (e)
(f)........................................ N/A 75,039 105,000
800,000 GST Telecommunications, Inc., 13.875% Sr Disc
Note 12-15-2005 (Zero coupon until
12-15-2000, thereafter 13.875%) (e)........ NR 424,544 460,000
500,000 Hyperion Communications, Inc., 13.00% Sr Disc
Note 4-15-2003 (Zero coupon until
4-15-2001, thereafter 13.00%) (e) (f)...... NR 273,512 280,000
500,000 Intermedia Communications of Florida, Inc.,
12.50% Sr Disc Note 5-15-2006 (Zero coupon
until 5-15-2001, thereafter 12.50%) (e).... B- 276,952 275,000
500,000 IXC Communications, Inc., 12.50% Sr Note
10-1-2005 (f).............................. B3* 531,056 522,500
500,000 MFS Communications, Inc., 8.79% Sr Disc Note
1-15-2006 (Zero coupon until 1-15-2001,
thereafter 8.875%) (e)..................... B 339,210 301,250
1,000,000 Microcell Telecommunications, Inc., 14.00%
Disc Note 6-1-2006 (Zero coupon until
12-1-2001, thereafter 14.00%) (and
warrants) (e) (f).......................... NR 480,450 490,000
500,000 NextLink Communications, L.L.C., 12.50% Sr
Note 4-15-2006 (f)......................... NR 500,000 497,500
500,000 Paging Network, Inc., 10.125% Sr Sub Note
8-1-2007................................... B 506,250 492,500
500,000 Panamsat L.P., 8.79% Sr Sub Disc Note
8-1-2003 (Zero coupon until 8-1-1998,
thereafter 11.375%)(e)..................... B 442,952 435,000
500,000 Teleport Communications, 11.125% Sr Disc Deb
7-1-2007 (Zero coupon until 7-1-2001,
thereafter 11.125%) (e).................... B 291,075 291,075
</TABLE>
30
<PAGE>
CORPORATE BONDS-NON-INVESTMENT GRADE-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- ------------- ------------ ------------
<C> <S> <C> <C> <C>
$ 100,000 Western Wireless Corp., 10.50% Sr Sub Note
6-1-2006................................... B- $ 100,000 $ 99,625
------------ ------------
6,429,705 6,460,075
------------ ------------
TOBACCO-0.63%
250,000 Liggett Group, Inc., 11.50% Secured Note Ser
B 2-1-1999................................. NR 186,250 207,500
------------ ------------
WASTE DISPOSAL-1.20%
375,000 Norcal Waste Systems, Inc., 13.00% Increasing
Rate Sr Note 11-15-2005 (e) (f)............ BB- 367,232 395,625
------------ ------------
TOTAL CORPORATE BONDS - NON-INVESTMENT
GRADE...................................... 29,663,894 29,904,611
------------ ------------
------------ ------------
TOTAL LONG-TERM INVESTMENTS.................. $29,848,636 $30,003,667
------------ ------------
------------ ------------
</TABLE>
SHORT-TERM INVESTMENTS-12.94%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
----------- ------------
<C> <S> <C>
BANKS-2.67%
$ 879,000 First Trust Money Market Variable Rate Time
Deposit, Current rate -- 5.13%............. $ 879,000
------------
DIVERSIFIED FINANCE-4.52%
1,489,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.36%...................... 1,489,000
------------
U.S. GOVERNMENT AGENCY-5.75%
800,000 Federal Home Loan Mortgage Corp., 5.35%,
7-8-1996................................... 799,063
1,100,000 Federal Home Loan Mortgage Corp., 5.37%,
7-31-1996.................................. 1,095,018
------------
1,894,081
------------
TOTAL SHORT-TERM INVESTMENTS................. 4,262,081
------------
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$34,110,717) (B)........................... $34,265,748
------------
------------
</TABLE>
* Moody's Rating
(a) Presently non-income producing. For corporate debt securities, items
identified are in default as to payment of interest and/or principal.
(b) At June 30, 1996, the cost of securities for federal income tax purposes
was $34,127,671 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation........................... $ 895,880
Unrealized depreciation........................... (757,803)
---------------------------------------------------------------
Net unrealized appreciation....................... $ 138,077
---------------------------------------------------------------
</TABLE>
(c) See Note 1 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 9.90% of net assets as of June 30, 1996
(e) The interest rate disclosed for these securities represents the original
issue discount yields on the date of acquisition.
(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 portfolio entered into the following Section
144A security transactions:
<TABLE>
<CAPTION>
DATE ACQUIRED SHARES/PAR SECURITY COST BASIS
- ------------- ---------- ------------------------------------------------------------------------------------------ ----------
<S> <C> <C> <C>
06/10/94 200 Chattem, Inc. Warrants $ 2,546
10/07/94 250 Hosiery Corp. of America, Class A 4,230
02/03/95 250 RXI Holdings, Inc. Warrants 4,838
03/30/95 500,000 Farm Fresh Holdings Corp. 14.25% PIK 10-1-2002 230,350
05/11/95 250 RXI Holdings, Inc. Warrants 4,922
11/10/95 1,000 American Communications Services Warrants 45,700
11/16/95 375,000 Norcal Waste Systems 12.50% 11-15-2005 364,654
12/14/95 100,000 GST Telecommunications 0/13.875% 12-15-2005 72,105
04/11/96 500,000 Hyperion Communications 01/13.00% 4-15-2003 266,360
04/19/96 500,000 NextLink Communications 12.50% 4-15-2006 500,000
04/30/96 250,000 Benton Oil & Gas 11.625% Sr Note 5-1-2003 257,500
05/08/96 125,000 Homeside, Inc., 11.25% Sr Note 5-15-2003 125,000
05/20/96 500 People's Choice T.V. Corp. Warrants 5,660
05/21/96 500,000 IXC Communications 12.50% 10-1-2005 531,250
05/23/96 250,000 SFX Broadcasting 10.75% 5-15-2006 250,000
06/14/96 1,000,000 Microcell Telecommunications 0/14.00% 6-1-2006 478,500
06/26/96 250,000 Guitar Centers, Inc., 11.00% Sr Note 7-1-2006 250,000
</TABLE>
The value of these securities at June 30, 1996 is $3,396,698 which
represents 10.31% of Net Assets.
31
<PAGE>
FORTIS SERIES FUND, INC.
ASSET ALLOCATION SERIES
Schedule of Investments
June 30, 1996 (Unaudited)
COMMON STOCKS-39.49%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
--------- ------------ -------------
<C> <S> <C> <C>
AUTOMOBILE AND MOTOR VEHICLE PARTS-0.40%
32,000 Magna International, Inc..................... $ 1,514,879 $ 1,472,000
------------ -------------
BROADCASTING-0.51%
81,000 News Corp., Ltd. ADR......................... 1,417,712 1,903,500
------------ -------------
BUSINESS SERVICES AND SUPPLIES-3.81%
109,757 First Data Corp.............................. 4,017,764 8,739,401
151,500 MBNA Corp.................................... 2,232,557 4,317,750
57,000 Wackenhut Corp............................... 1,368,069 1,047,375
------------ -------------
7,618,390 14,104,526
------------ -------------
COMPUTER-HARDWARE-0.79%
58,000 Ceridian Corp. (a)........................... 2,572,542 2,929,000
------------ -------------
COMPUTER-SOFTWARE-4.27%
61,500 Computer Associates International, Inc. 2,234,208 4,381,875
44,250 Microsoft Corp. (a).......................... 1,883,251 5,315,531
155,250 Oracle Corp. (a)............................. 653,470 6,122,672
------------ -------------
4,770,929 15,820,078
------------ -------------
ELECTRONIC-CONTROLS AND EQUIPMENT-0.54%
53,000 Solectron Corp. (a).......................... 2,013,540 2,007,375
------------ -------------
ELECTRONIC-SEMICONDUCTOR AND CAPACITOR-0.44%
22,000 Intel Corp................................... 901,065 1,615,625
------------ -------------
FINANCE COMPANIES-3.25%
128,000 Federal National Mortgage Association 2,856,973 4,288,000
36,000 Franklin Resources, Inc...................... 1,472,500 2,196,000
178,996 Green Tree Financial Corp.................... 2,421,448 5,593,625
------------ -------------
6,750,921 12,077,625
------------ -------------
HEALTH CARE SERVICES-2.97%
78,000 Columbia/HCA Healthcare Corp................. 3,217,046 4,163,250
66,000 Oxford Health Plans, Inc. (a)................ 2,451,344 2,714,250
29,000 PacifiCare Health Systems, Inc., Class B
(a)........................................ 2,171,267 1,964,750
43,000 United Healthcare Corp....................... 2,151,796 2,171,500
------------ -------------
9,991,453 11,013,750
------------ -------------
HOTEL AND MOTEL-1.25%
85,750 Mirage Resorts, Inc. (a)..................... 1,933,090 4,630,500
------------ -------------
INSURANCE-0.43%
16,000 American International Group, Inc............ 1,525,819 1,578,000
------------ -------------
MEDICAL SUPPLIES-0.96%
63,200 Medtronic, Inc. (and rights)................. 2,186,423 3,539,200
------------ -------------
<CAPTION>
Market
Shares Cost (b) Value (c)
--------- ------------ -------------
<C> <S> <C> <C>
MEDICAL TECHNOLOGY-0.95%
77,900 Boston Scientific Corp. (a).................. $ 3,181,528 $ 3,505,500
------------ -------------
MISCELLANEOUS-1.11%
116,100 CUC International, Inc. (a).................. 2,332,188 4,121,550
------------ -------------
OFFICE EQUIPMENT AND SUPPLIES-2.04%
106,000 Silicon Graphics, Inc. (a)................... 1,597,487 2,544,000
65,000 Sterling Software, Inc. (a).................. 1,601,021 5,005,000
------------ -------------
3,198,508 7,549,000
------------ -------------
PUBLISHING-0.61%
36,300 Scholastic Corp. (a)......................... 1,851,033 2,250,600
------------ -------------
RETAIL-DEPARTMENT STORES-1.51%
83,200 Kohl's Corp. (a)............................. 1,624,870 3,047,200
100,000 Wal-Mart Stores, Inc......................... 2,479,410 2,537,500
------------ -------------
4,104,280 5,584,700
------------ -------------
RETAIL-MISCELLANEOUS-4.55%
85,600 AutoZone, Inc. (a)........................... 1,881,356 2,974,600
81,500 Home Depot, Inc.............................. 3,542,446 4,401,000
68,100 Office Depot, Inc. (a)....................... 821,547 1,387,537
121,500 Pep Boys Manny-Moe & Jack.................... 3,563,862 4,131,000
184,000 Price/Costco, Inc. (a)....................... 3,220,214 3,979,000
------------ -------------
13,029,425 16,873,137
------------ -------------
TELECOMMUNICATIONS-5.41%
61,000 3Com Corp. (a)............................... 565,331 2,790,750
113,700 Cisco Systems, Inc. (a)...................... 1,420,404 6,438,263
220,000 Ericsson (L.M.) Telephone Co., Class B ADR... 2,657,302 4,730,000
45,000 Motorola, Inc................................ 1,886,348 2,829,375
49,000 Tellabs, Inc.(a)............................. 1,981,118 3,276,875
------------ -------------
8,510,503 20,065,263
------------ -------------
TELEPHONE SERVICES-1.75%
116,994 WorldCom, Inc. (a)........................... 1,880,775 6,478,543
------------ -------------
TOYS-1.31%
169,651 Mattel, Inc.................................. 2,566,899 4,856,260
------------ -------------
UTILITIES-TELEPHONE-0.63%
83,200 AirTouch Communications, Inc. (a)............ 2,101,440 2,350,400
------------ -------------
TOTAL COMMON STOCKS.......................... $ 85,953,342 $ 146,326,132
------------ -------------
------------ -------------
</TABLE>
PREFERRED STOCKS-0.40%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
-------- ----------- -------------
<C> <S> <C> <C>
BROADCASTING-0.40%
73,000 News Corp. Ltd.(The) Preferred ADR........... $1,262,906 $ 1,469,125
----------- -------------
</TABLE>
ASSET BACKED SECURITIES-17.43%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- ------------- ------------ -------------
<C> <S> <C> <C> <C>
COMMERCIAL LOANS-9.72%
$1,989,565 DLJ Mortgage Acceptance Corp., 7.28% Ser
1996-CF1 Class A-1A 3-13-2028 (f).......... AAA $ 2,004,476 $ 1,998,891
3,224,440 GS MSC II Protective Life Ser 1996-PL, 7.02%
3-1-2026................................... AAA 3,203,484 3,197,234
1,491,495 J.P. Morgan Commercial Mortgage., 6.47%
1996-C2 Class A, 11-25-2027................ AAA 1,502,278 1,423,197
3,090,866 Merrill Lynch Mortgage Investors, Inc.,
6.8151% Variable Rate Ser 1995-C2 Cl A1
6-15-2021.................................. Aaa* 3,137,712 3,092,433
</TABLE>
32
<PAGE>
ASSET BACKED SECURITIES-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- ------------- ------------ -------------
<C> <S> <C> <C> <C>
$1,600,000 Merrill Lynch Mortgage Investors, Inc., 7.42%
Ser 1996 Cl B 4-25-2028.................... AA $ 1,602,458 $ 1,568,500
1,870,000 Nationslink Funding Corp., 7.515% Ser 1996-1
Class A2, 7-20-2005........................ AAA 1,872,326 1,884,025
3,092,440 Nationslink Funding Corp., 7.533% Ser 1996-1
Class A1, 9-20-2002........................ AAA 3,112,181 3,134,961
7,000,000 Nomura Asset Securities Corp., 6.68%
Congregate Care Pass thru Certificate Ser
1993-1 Cl A3 12-15-2003.................... A 6,598,276 6,655,502
3,622,625 Resolution Trust Corp., 7.15% Mtg Pass Thru
Certificate Ser 1995-2 Cl M1 5-25-2029..... Aa2* 3,587,738 3,525,531
3,850,000 Resolution Trust Corp., 7.45% Mortgage Pass
Thru Certificate Ser 1994-C1 Cl A2C
6-25-2026.................................. AAA 3,900,373 3,854,812
2,000,000 Resolution Trust Corp., 7.45% Mtg Pass Thru
Certificate Ser 1995-2 Cl A1C 5-25-2029.... Aaa* 1,973,205 1,961,464
3,880,000 Structured Asset Securities Corp., 5.944% Ser
96-CFL Cl A1C 2-25-2028.................... AAA 3,812,092 3,747,335
------------ -------------
36,306,599 36,043,885
------------ -------------
MANUFACTURED HOMES-4.22%
2,252,603 CIT Group Manufactured Housing Contract,
7.70% Sr Sub Pass Thru Certificate Ser
1995-1 Cl A 8-15-2020...................... Aaa* 2,251,977 2,295,197
4,000,000 Green Tree Financial Corp., 7.65% Sr Sub Pass
Thru Certificate Ser 1994-1 Cl A5
4-15-2019.................................. Aa2* 4,070,313 3,935,792
3,000,000 Green Tree Financial Corp., 8.35% Sr Sub Pass
Thru Certificate Ser 1994-7 Cl A4
3-15-2020.................................. Aaa* 2,996,250 3,164,937
6,500,000 Oakwood Mortgage Investors, Inc., 7.10% Ser
1995-A Cl A3 9-15-2020..................... AAA 6,500,938 6,248,197
------------ -------------
15,819,478 15,644,123
------------ -------------
MISCELLANEOUS-0.67%
2,446,881 Vanderbilt Mortgage & Finance, Inc., 7.00%
Mfg Housing Contract Ser 1994-A Cl A1
7-10-2019.................................. AA 2,445,352 2,464,863
------------ -------------
MULTI-FAMILY LOANS-2.82%
1,500,000 DLJ Mortgage Acceptance Corp., 8.80%
Multifamily Mortgage Pass Thru Certificate
Ser 1993-12 Class B1 9-18-2003............. NR* 1,473,750 1,506,339
4,851,000 DLJ Mtg Acceptance Corp., 8.50% Multifamily
Mtg Pass Thru Certificate Ser 1994-4 Cl A2
4-18-2001.................................. A 4,945,566 5,025,272
956,186 Fund America Structured Transactions, L.P.,
8.231% Collateralized Note, Ser 1996-1 Cl A
PO 1-1-2033 (f) (g)........................ Baa* 686,932 669,480
3,300,000 Paine Webber Mortgage Acceptance Corp. IV,
6.70% Ser 1995-M1 1-15-2007 (e)(f)......... NR* 3,293,537 3,238,125
------------ -------------
10,399,785 10,439,216
------------ -------------
TOTAL ASSET BACKED SECURITIES................ $64,971,214 $ 64,592,087
------------ -------------
------------ -------------
</TABLE>
CORPORATE BONDS-INVESTMENT GRADE-16.32%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- ------------- ------------ -------------
<C> <S> <C> <C> <C>
AEROSPACE AND EQUIPMENT-0.94%
$3,500,000 Lockheed Martin Corp.,7.25% Note 5-15-2006... BBB+ $ 3,496,735 $ 3,474,135
------------ -------------
BANKS-5.75%
4,000,000 Advanta National Bank, 6.45% Note
10-30-2000................................. BBB 3,995,556 3,888,220
3,500,000 Bankamerica Corp., 6.625% 5-30-2001.......... A+ 3,474,791 3,461,738
5,500,000 Capital One Bank, 6.83% Med Term Note
8-16-1999.................................. Baa3* 5,500,000 5,479,534
4,000,000 Chase Commercial Mortgage Securities
Corp.,7.60% Ser 1996-1 Class A-1........... AAA 4,045,720 4,045,720
3,500,000 Fleet Financial Group, Inc., 7.125% Sub Note
4-15-2006.................................. BBB+ 3,449,683 3,417,865
1,000,000 Mortgage Capital Funding, Inc., Ser 1996-MCI-
B 7.90% 7-1-2026........................... AA+ 1,010,312 1,010,312
------------ -------------
21,476,062 21,303,389
------------ -------------
BROKERAGE AND INVESTMENT-2.80%
3,000,000 Donaldson Lufkin Jenrette Securities Corp.,
5.625% Med Term Note 2-15-2016............. A- 2,994,240 2,823,618
2,500,000 Lehman Brothers Holdings, Inc., 8.75% Note
5-15-2002.................................. A 2,805,629 2,667,860
3,000,000 Paine Webber Group, 6.25% Note 6-15-1998..... BBB+ 3,028,559 2,967,843
2,000,000 Salomon, Inc., 6.75% Sr Note 2-15-2003....... BBB 1,996,127 1,915,628
------------ -------------
10,824,555 10,374,949
------------ -------------
CHEMICALS-0.67%
2,500,000 Methanex Corp., 7.40% Note 8-15-2002......... BBB+ 2,489,439 2,472,077
------------ -------------
ELECTRONIC-MISCELLANEOUS-0.47%
1,750,000 Philips Electronics NV, 7.20% Note
6-1-2026................................... BBB+ 1,746,048 1,741,287
------------ -------------
FOREIGN-GOVERNMENT AGENCIES-1.72%
6,000,000 Hydro-Quebec, 8.05% Deb 7-7-2024............. A+ 6,597,660 6,370,134
------------ -------------
</TABLE>
33
<PAGE>
FORTIS SERIES FUND, INC.
ASSET ALLOCATION SERIES (CONTINUED)
Schedule of Investments
June 30, 1996 (Unaudited)
CORPORATE BONDS-INVESTMENT GRADE-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- ------------- ------------ -------------
<C> <S> <C> <C> <C>
INDUSTRIAL-0.52%
$2,000,000 Olsten Corp., 7.00% Sr Note 3-15-2006........ A- $ 1,989,918 $ 1,944,054
------------ -------------
MEDIA-0.26%
400,000 News America Holdings, Inc., 10.125% Sr Note
10-15-2012................................. BBB 400,000 451,947
500,000 News America Holdings, Inc., 8.963% Sr Note
4-26-2023.................................. BBB 495,926 529,149
------------ -------------
895,926 981,096
------------ -------------
MISCELLANEOUS-0.08%
250,000 New York (City of), 10.00% General Obligation
Taxable Bond Fiscal 1991 Ser D 8-1-2005.... BBB+ 236,514 281,531
------------ -------------
REAL ESTATE-0.54%
2,000,000 MEPC Finance, Inc., 7.50% Guaranteed Note
5-1-2003................................... A 1,997,457 2,002,852
------------ -------------
SUPRANATIONAL-0.39%
1,500,000 Corp Andina De Formento, 7.10% Yankee Bond
2-1-2003................................... BBB 1,499,056 1,460,999
------------ -------------
TELECOMMUNICATIONS-0.90%
3,500,000 360 Communications Corp., 7.50% Sr Note
3-1-2006................................... BBB- 3,492,090 3,321,045
------------ -------------
WASTE DISPOSAL-1.28%
5,000,000 Browning-Ferris, Inc., 7.40% Secured Note
9-15-2035.................................. A 4,973,250 4,751,430
------------ -------------
TOTAL CORPORATE BONDS - INVESTMENT GRADE..... $61,714,710 $ 60,478,978
------------ -------------
------------ -------------
</TABLE>
CORPORATE BONDS-NON-INVESTMENT GRADE-7.68%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- ------------- ------------ -------------
<C> <S> <C> <C> <C>
BROADCASTING-0.40%
$ 500,000 SFX Broadcasting, 10.75% Sr Sub Note
5-15-2006 (f).............................. B- $ 500,000 $ 497,500
1,000,000 Sinclair Broadcasting, Inc., 10.00% Sr Sub
Note 9-30-2005............................. B 1,000,000 970,000
------------ -------------
1,500,000 1,467,500
------------ -------------
CABLE TELEVISION-1.38%
1,000,000 Cablevision Systems, Corp., 9.875% Sr Sub
Note 5-15-2006............................. B 968,437 968,750
1,000,000 Century Communications, Inc., 9.50% Sr Note
3-1-2005................................... BB- 1,041,449 975,000
1,000,000 Comcast Corp., 9.125% Sr Sub Note
10-15-2006................................. B+ 1,034,046 945,000
674,241 Falcon Holding Group L.P., 11.00% Sr Sub Note
Ser B 9-15-2003 (Interest is
Payable-in-Kind)........................... NR* 554,425 613,556
500,000 Groupe Videotron, 10.625% Sr Note
2-15-2005.................................. BB+ 526,223 523,750
500,000 Telewest plc, 11.00% Sr Disc Deb
10-1-2007(Zero coupon until 10-1-2000,
Thereafter 11.00%) (e)..................... BB 318,383 295,000
1,250,000 United International Holdings, Inc., 14.00%
Sr Sec Disc Note Ser B 11-15-1999 (e)...... B- 848,315 818,750
------------ -------------
5,291,278 5,139,806
------------ -------------
CHEMICALS-1.11%
1,250,000 Arcadian Partners L.P., 10.75% Sr Note Ser B
5-1-2005................................... BB- 1,244,156 1,351,562
500,000 Indspec Chemical Corp., 12.618% Sr Sub Disc
Note Ser B................................. B- 346,819 425,000
2,500,000 Lyondell Petrochemical, 6.50% Note
2-15-2006.................................. BBB- 2,494,205 2,321,983
------------ -------------
4,085,180 4,098,545
------------ -------------
COSMETICS AND SUNDRIES-0.27%
1,000,000 Revlon Consumer Products Corp., 10.50% Sr Sub
Note 2-15-2003............................. B- 1,020,312 1,002,500
------------ -------------
ENERGY-0.27%
1,000,000 Mesa Capital Corp., 12.75% Secured Note
6-30-1998.................................. Caa* 1,002,952 1,000,000
------------ -------------
FINANCE COMPANIES-0.27%
1,000,000 Mesa Operating Co., 10.625% Sr Note
7-1-2006................................... B 1,010,000 1,000,000
------------ -------------
FOOD-MISCELLANEOUS-0.42%
1,500,000 Envirodyne Industries, Inc., 12.00% First
Priority Sr Secured Note 6-15-2000......... B+ 1,498,125 1,548,750
------------ -------------
HEALTH CARE SERVICES-0.27%
1,000,000 Tenet Healthcare Corp., 8.625% Sr Note
12-1-2003.................................. BB 996,868 1,010,000
------------ -------------
HOTEL AND MOTEL-0.12%
500,000 HMC Acquistion Properties, Inc., 9.00% Sr
Note 12-15-2007............................ NR 500,000 458,750
------------ -------------
</TABLE>
34
<PAGE>
CORPORATE BONDS-NON-INVESTMENT GRADE-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- ------------- ------------ -------------
<C> <S> <C> <C> <C>
LEISURE TIME-AMUSEMENTS-0.54%
$1,500,000 Showboat, Inc., 9.25% First Mortgage Bond
5-1-2008................................... BB- $ 1,523,593 $ 1,507,500
500,000 Trump Atlantic City Associates, 11.25% First
Mortgage Bond 5-1-2006..................... BB- 500,000 502,500
------------ -------------
2,023,593 2,010,000
------------ -------------
METALS-MINING AND MISCELLANEOUS-0.30%
1,000,000 Renco Metals, Inc., 12.00% Sr Note
7-15-2000.................................. B 1,082,500 1,125,000
------------ -------------
STEEL AND IRON-0.22%
750,000 AK Steel Corp., 10.75% Sr Note 4-1-2004...... BB 825,110 810,000
------------ -------------
TECHNOLOGY-0.28%
1,000,000 Computervision Corp., 11.375% Sr Sub Note
8-15-1999.................................. B- 1,033,750 1,030,000
------------ -------------
TELECOMMUNICATIONS-1.70%
500,000 A+ Network, Inc., 11.875% Sr Sub Note
11-1-2005.................................. CCC+ 512,346 517,500
375,000 Arch Communications Group, Inc., 10.72% Sr
Disc Note 3-15-2008 (Zero coupon until
3-15-2001, thereafter 10.875%) (e)......... B- 230,306 193,125
500,000 Fonorola, Inc., 12.50% Sr Secured Note
8-15-2002.................................. B+ 538,672 540,000
1,000,000 Hyperion Communications, Inc., 13.00% Sr Disc
Note 4-15-2003 (Zero coupon until
4-15-2001, 13.00% thereafter) (and
warrants) (e) (f).......................... NR 547,606 560,000
1,000,000 MFS Communications, 9.59% Sr Disc Note
1-15-2004 (Zero coupon until 1-15-1999,
thereafter 9.375%)(e)...................... B 784,579 755,000
1,000,000 NextLink Communications, L.L.C., 12.50% Sr
Note 4-15-2006 (f)......................... NR 1,000,000 995,000
1,000,000 Paging Network, Inc., 10.125% Sr Sub Note
8-1-2007................................... B 1,059,093 985,000
1,000,000 Panamsat L.P., 8.10% Sr Sub Disc Note
8-1-2003 (Zero coupon until 8-1-1998,
thereafter 11.375%) (e).................... B 897,903 870,000
1,500,000 Teleport Communications, 11.125% Sr Disc Deb
7-1-2007 (Zero coupon until 7-1-2001,
thereafter 11.125%) (e).................... B 873,225 873,225
------------ -------------
6,443,730 6,288,850
------------ -------------
TOBACCO-0.13%
575,000 Liggett Group, Inc., 11.50% Secured Note Ser
B 2-1-1999................................. NR 420,438 477,250
------------ -------------
TOTAL CORPORATE BONDS - NON-INVESTMENT
GRADE...................................... $28,733,836 $ 28,466,951
------------ -------------
------------ -------------
</TABLE>
U.S. GOVERNMENT SECURITIES-17.64%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Cost (b) Value (c)
----------- --------------- -------------
<C> <S> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION-8.85%
MORTGAGE BACKED SECURITIES:
$3,969,902 6.00% 2011................................... $ 3,889,743 $ 3,752,796
5,690,523 6.50% 2010................................... 5,639,841 5,498,468
8,986,067 7.00% 2011-2026.............................. 8,823,146 8,693,722
5,699,685 7.25% 2005................................... 5,902,736 5,627,892
2,540,101 7.50% 2022-2026.............................. 2,604,582 2,507,534
1,671,384 8.00% 2025................................... 1,696,716 1,684,427
65,323 9.00% 2021................................... 65,180 68,099
--------------- -------------
28,621,944 27,832,938
--------------- -------------
NOTES:
2,000,000 6.85% 2000................................... 2,000,000 1,990,886
--------------- -------------
REMIC-PAC'S:
3,000,000 7.00% 2020................................... 2,892,344 2,954,367
--------------- -------------
TOTAL FEDERAL NATIONAL MORTGAGE
ASSOCIATION................................ 33,514,288 32,778,191
--------------- -------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION-3.67%
MORTGAGE BACKED SECURITIES:
2,006,211 7.00% 2026................................... 1,955,527 1,924,064
5,765,579 7.50% 2022-2023.............................. 5,604,411 5,680,848
4,905,340 9.00% 2022-2023.............................. 5,064,764 5,132,173
762,391 9.125% Fleet Mortgage Securities Ser 1989-3
Class D 2018 (GNMA backed)................. 780,497 778,149
83,452 9.50% 2020................................... 83,243 89,163
--------------- -------------
TOTAL GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION................................ 13,488,442 13,604,397
--------------- -------------
</TABLE>
35
<PAGE>
FORTIS SERIES FUND, INC.
ASSET ALLOCATION SERIES (CONTINUED)
Schedule of Investments
June 30, 1996 (Unaudited)
U.S. GOVERNMENT SECURITIES-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Cost (b) Value (c)
----------- --------------- -------------
<C> <S> <C> <C>
OTHER DIRECT FEDERAL OBLIGATIONS-1.62%
FEDERAL HOME LOAN BANK:
$6,000,000 6.125% Global Registered Note 1996........... $ 5,984,063 $ 6,003,804
--------------- -------------
U.S. TREASURY SECURITIES-3.50%
BONDS:
5,740,000 8.125% 2019-2021............................. 6,493,942 6,463,935
--------------- -------------
NOTES:
2,270,000 6.00% 1998................................... 2,268,997 2,265,033
1,460,000 6.25% 2001................................... 1,433,223 1,445,400
2,800,000 7.25% 1996................................... 2,815,313 2,808,750
--------------- -------------
6,517,533 6,519,183
--------------- -------------
TOTAL U.S. TREASURY SECURITIES............... 13,011,475 12,983,118
--------------- -------------
TOTAL U.S. GOVERNMENT SECURITIES............. 65,998,268 65,369,510
--------------- -------------
TOTAL LONG TERM DEBT SECURITIES.............. 221,418,028 218,907,526
--------------- -------------
TOTAL LONG TERM INVESTMENTS.................. $ 308,634,276 $ 366,702,783
--------------- -------------
--------------- -------------
</TABLE>
SHORT-TERM INVESTMENTS-0.64%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
----------- -------------
<C> <S> <C>
BANKS-0.60%
$2,217,000 First Trust Money Market Variable Rate Time
Deposit, Current rate -- 5.13%............. $ 2,217,000
-------------
DIVERSIFIED FINANCE-0.04%
138,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.36%...................... 138,000
-------------
TOTAL SHORT-TERM INVESTMENTS................. 2,355,000
-------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$310,989,276)(B)........................... $ 369,057,783
-------------
-------------
</TABLE>
(a) Presently non-income producing. For corporate debt securities, items
identified are in default as to payment of interest and/or principal.
(b) At June 30, 1996, the cost of securities for federal income tax purposes
was $311,295,527 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation.......................................... $ 62,930,688
Unrealized depreciation.......................................... (5,168,432)
- -------------------------------------------------------------------------------
Net unrealized appreciation...................................... $ 57,762,256
- -------------------------------------------------------------------------------
</TABLE>
(c) See Note 1 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 6.07% of net assets as of June 30, 1996.
(e) The interst rate disclosed for these securities represents the original
issue discount yields on the date of acquisition.
(f) Securities sold within the terms of private placement memorandums, exempt
form registration under section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or other
"Accredited Investors". These Investments have been identified by portfolio
management as illiquid securities. The portfolio entered into the following
section 144A security transactions: On November 14, 1995 the portfolio
acquired $3,300,000 par of Paine Webber Mortgage Acceptance Corp. IV due
2007 with a cost basis of $3,293,537. On March 29, 1996 the portfolio
acquired $1,000,000 par of Fund America Structured Transactions due 2033
with a cost basis of $686,932. On May 17, 1996 the portfolio acquired
$2,000,000 par of DLJ Mortgage Acceptance Corp. due 2028 with a cost basis
of $2,004,476. On April 19, 1996 the portfolio acquired $1,000,000 par of
Nextlink Communications, L.L.C. due 2006 with a cost basis of $1,000,000.
On April 29, 1996 the portfolio acquired $1,000,000 par of Hyperion
Communications, Inc., due 2003 with a cost basis of $547,606. On May 23,
1996 the portfolio acquired $500,000 par of SFX Broadcasting due 2006 with
a cost basis of $500,000. The value of these securities at June 30, 1996,
is $7,958,996 which represents 2.15% of net assets.
(g) The interest rate disclosed for principal only strips represent effective
yields at June 30, 1996, based upon the estimated timing of future cash
flows. This investment has been identified by portfolio management as an
illiquid security. The aggregate value of this security at June 30, 1996 is
$669,480 which represents .32% of total net assets.
* Moody's Rating
36
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL ASSET ALLOCATION SERIES
Schedule of Investments
June 30,1996 (Unaudited)
COMMON STOCKS-45.15%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
AUSTRALIA-1.16%
10,000 Brambles Industries Ltd. -- BUSINESS SERVICES
AND SUPPLIES............................... $ 104,654 $ 139,151
34,460 Coles Myer Ltd. -- RETAIL-MISCELLANEOUS...... 120,901 125,303
22,000 CSR Limited -- BUILDING MATERIALS............ 74,308 77,745
------------ ------------
299,863 342,199
------------ ------------
BELGIUM-0.34%
2,000 Delhaize-Le Lion,
S.A. -- RETAIL-MISCELLANEOUS............... 79,986 99,907
------------ ------------
CANADA-0.15%
2,950 Hudson's Bay Co. -- RETAIL-DEPARTMENT
STORES..................................... 57,925 44,716
------------ ------------
FRANCE-2.50%
3,300 Banque Nationale de Paris (a) -- BANKS....... 126,646 115,831
341 Bongrain S.A. -- FOOD-GROCERY,
MISCELLANEOUS.............................. 169,170 164,933
560 Credit Lyonnaise (a) -- BANKS................ 35,896 13,108
1,683 Elf Aquitaine -- OIL-CRUDE PETROLEUM AND
GAS........................................ 119,270 123,771
750 PSA Peugeot Citroen S.A. -- AUTOMOBILE
MANUFACTURERS.............................. 99,336 100,377
4,050 Valeo S.A. -- AUTOMOBILE AND MOTOR VEHICLE
PARTS...................................... 177,328 216,736
------------ ------------
727,646 734,756
------------ ------------
GERMANY-2.80%
500 Basf AG -- CHEMICALS......................... 110,339 142,398
4,850 Bayer AG -- CHEMICALS........................ 118,314 170,627
660 Karstadt AG -- RETAIL-DEPARTMENT STORES...... 255,306 262,762
195 Mannesmann AG -- MACHINERY................... 53,318 67,129
150 Varta AG (a) -- AUTOMOBILE AND MOTOR VEHICLE
PARTS...................................... 30,189 32,126
1,700 Veba AG -- UTILITIES-ELECTRIC................ 58,756 90,353
150 Volkswagen AG -- AUTOMOBILE MANUFACTURERS.... 43,858 55,826
------------ ------------
670,080 821,221
------------ ------------
HONG KONG-0.46%
42,000 Jardine Strategic Holdings
Ltd. -- MISCELLANEOUS...................... 125,664 134,400
------------ ------------
IRELAND-0.90%
50,000 Avonmore Foods plc -- FOOD-GROCERY,
MISCELLANEOUS.............................. 107,398 135,794
35,079 Green Property plc -- REAL ESTATE............ 91,578 128,895
------------ ------------
198,976 264,689
------------ ------------
ITALY-0.56%
37,100 Stet Societa' Finanziaria Telefonica
S.p.A. -- TELECOMMUNICATIONS............... 87,719 97,412
38,000 Telecom Italia
S.p.A. -- UTILITIES-TELEPHONE.............. 47,368 65,566
------------ ------------
135,087 162,978
------------ ------------
JAPAN-4.67%
4,000 Daicel Chemical Industries
Ltd. -- CHEMICALS.......................... 21,751 24,617
40 East Japan Railway Co. -- TRANSPORTATION..... 195,497 209,698
5,000 Fuji Photo Film -- PHOTOGRAPHIC.............. 117,985 157,729
6,000 Hitachi Ltd. -- ELECTRONIC-CONTROLS AND
EQUIPMENT.................................. 56,981 55,798
14,000 Kao Corp. -- HOUSEHOLD PRODUCTS.............. 164,653 188,911
22,050 Nichido Fire & Marine
Insurance -- INSURANCE..................... 169,099 170,278
20 Nippon Telegraph & Telephone
Corp. -- TELEPHONE SERVICES................ 142,089 148,065
2,000 Sony Corp. -- ELECTRONIC-CONTROLS AND
EQUIPMENT.................................. 114,488 131,472
10,000 Sumitomo Rubber Industries -- AUTOMOBILE AND
MOTOR VEHICLE PARTS........................ 88,145 86,523
1,000 TDK Corp. -- ELECTRIC-COMPONENTS AND PARTS... 44,629 59,627
4,000 Toyo Seikan Kaisha -- CONTAINERS AND
PACKAGING.................................. 125,311 139,312
------------ ------------
1,240,628 1,372,030
------------ ------------
NETHERLANDS-3.43%
3,404 ABN-AMRO Holding NV -- BANKS................. 124,177 182,666
1,300 Akzo Nobel NV -- CHEMICALS................... 142,361 155,743
205 Hollandsche Beton Groep NV -- CONSTRUCTION... 31,456 39,271
6,162 ING Groep NV -- FINANCE COMPANIES............ 137,997 183,744
3,500 Koninklijke PTT Nederland NV -- TELEPHONE
SERVICES................................... 131,006 132,456
</TABLE>
37
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL ASSET ALLOCATION SERIES (CONTINUED)
Schedule of Investments
June 30,1996 (Unaudited)
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
2,700 Koninklijke Van Ommeren
NV -- TRANSPORTATION....................... $ 70,818 $ 106,293
6,400 Philips Electronics NV -- ELECTRIC
PRODUCTS................................... 220,016 208,087
------------ ------------
857,831 1,008,260
------------ ------------
SPAIN-1.37%
12,700 Iberdrola S.A. -- UTILITIES-ELECTRIC......... 76,653 130,258
3,080 Repsol S.A. -- OIL-CRUDE PETROLEUM AND GAS... 110,826 107,022
9,000 Telefonica de Espana -- TELECOMMUNICATIONS... 113,414 165,665
------------ ------------
300,893 402,945
------------ ------------
SWEDEN-1.90%
6,600 Skandia Forsakrings AB -- INSURANCE.......... 145,049 174,562
12,000 Skandinaviska Enskilda Banken A
Free -- BANKS.............................. 68,606 95,848
3,900 Sparbanken Sverige AB "A" -- BANKS........... 24,635 50,546
10,000 Svenska Cellulosa B Free -- BANKS............ 135,893 205,713
3,900 Tornet Fastighets AB -- REAL
ESTATE-INVESTMENT TRUST.................... 17,477 31,738
------------ ------------
391,660 558,407
------------ ------------
SWITZERLAND-3.63%
50 Ascom Holding AG -- TELECOMMUNICATIONS....... 49,185 50,334
65 Bobst S.A. -- MACHINERY...................... 79,455 93,737
150 Ciba-Geigy AG -- DRUGS....................... 91,076 182,760
160 Forbo Holding AG -- HOUSEHOLD PRODUCTS....... 72,668 67,751
160 Holderbank Financiere Glaris AG -- BUILDING
MATERIALS.................................. 120,975 127,832
110 Magazine Zum Globus -- RETAIL-DEPARTMENT
STORES..................................... 64,038 66,792
200 Nestle S.A. Registered -- FOOD-GROCERY,
MISCELLANEOUS.............................. 205,447 228,340
110 SIG Schweizerische Industrie-Gesellschaft
Holding AG -- MACHINERY.................... 107,975 127,433
190 Sulzer AG -- MISCELLANEOUS................... 119,878 122,048
------------ ------------
910,697 1,067,027
------------ ------------
UNITED KINGDOM-2.86%
3,400 Calor Group plc -- OIL-CRUDE PETROLEUM AND
GAS........................................ 14,749 12,838
24,000 Christian Salvesen plc -- MISCELLANEOUS...... 102,796 95,093
9,337 English China Clays plc -- MINERALS.......... 55,631 37,575
23,500 Kwik Save Group plc -- FOOD-GROCERY,
MISCELLANEOUS.............................. 198,031 165,410
50,000 Mattews (Bernard) plc -- FOOD-GROCERY,
MISCELLANEOUS.............................. 74,479 78,467
11,600 Railtrack Group plc, Partly Paid -- RAILROAD
AND RAILROAD EQUIPMENT..................... 35,083 39,473
12,200 Reckitt & Colman plc -- HOUSEHOLD PRODUCTS... 128,792 128,145
10,116 Tate & Lyle plc -- FOOD-GROCERY,
MISCELLANEOUS.............................. 69,290 71,990
7,600 Unilever plc -- CONSUMER GOODS............... 147,562 151,154
17,700 WPP Group plc -- ADVERTISING-PUBLIC
RELATIONS.................................. 36,181 59,130
------------ ------------
862,594 839,275
------------ ------------
UNITED STATES-18.42%
2,250 A T & T Corp. -- UTILITIES-TELEPHONE......... 135,009 139,500
6,900 Addington Resources, Inc. (a) -- NATURAL
RESOURCES.................................. 86,864 172,500
4,200 Aluminum Company of
America -- METALS-FABRICATING.............. 211,484 240,975
1,300 AMR Corp. (a) -- AIRLINES.................... 75,878 118,300
4,750 Bank of New York Co., Inc. -- BANKS.......... 206,521 243,437
3,000 Beazer Homes USA, Inc. (a) -- MANUFACTURED
HOMES...................................... 43,950 48,000
5,600 Browning-Ferris Industries, Inc. -- WASTE
DISPOSAL................................... 159,280 162,400
19,000 Cadiz Land Co., Inc. (a) -- LAND
DEVELOPMENT................................ 108,321 111,625
15,850 Comsat Corp. -- TELECOMMUNICATIONS........... 307,316 412,100
1,298 Cray Research, Inc.
(a) -- COMPUTER-SOFTWARE................... 33,198 31,314
10,250 Data General Corp.
(a) -- COMPUTER-SOFTWARE................... 83,836 133,250
1,850 Echlin, Inc. -- AUTOMOBILE AND MOTOR VEHICLE
PARTS...................................... 62,856 70,069
18,300 Egghead, Inc. (a) -- RETAIL-SPECIALTY AND
SPECIALTY MAIL ORDER....................... 163,751 203,588
6,800 Enhance Financial Services Group,
Inc. -- INSURANCE.......................... 123,144 190,400
3,900 Equitable Companies, Inc. -- INSURANCE....... 81,220 97,012
6,000 Finova Group, Inc. -- FINANCE COMPANIES...... 241,239 292,500
3,850 General Motors Corp. -- AUTOMOBILE
MANUFACTURERS.............................. 191,334 201,644
13,000 GenRad, Inc. (a) -- ELECTRONIC-CONTROLS AND
EQUIPMENT.................................. 73,818 214,500
2,850 Georgia Pacific Corp. -- FOREST PRODUCTS..... 205,129 202,350
</TABLE>
38
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
4,950 Houghton Mifflin Co. -- PUBLISHING........... $ 208,454 $ 246,263
4,895 Limited (The), Inc. -- RETAIL-CLOTHING....... 85,521 105,243
5,300 Lukens, Inc. -- STEEL AND IRON............... 152,922 126,538
2,550 MBIA, Inc. -- INSURANCE...................... 177,327 198,581
7,600 MCI Communications
Corp. -- UTILITIES-TELEPHONE............... 183,214 194,750
4,000 Mellon Bank Corp. -- BANKS................... 161,649 228,000
4,500 Novell, Inc. (a) -- COMPUTER-SOFTWARE........ 58,274 62,437
4,300 Penncorp Financial Group, Inc. -- FINANCE
COMPANIES.................................. 137,887 136,525
2,100 Philip Morris Companies, Inc. -- TOBACCO..... 149,888 218,400
2,220 Reebok International Ltd. -- SHOES AND
LEATHER.................................... 63,019 74,648
1,700 Tecumseh Products Co. Cl A -- MACHINERY...... 83,600 91,375
3,000 United Assets Management Corp. -- FINANCE
COMPANIES.................................. 64,098 73,500
10,000 UST Corp. -- BANKS........................... 150,000 148,750
5,000 Waban, Inc. (a) -- RETAIL-MISCELLANEOUS...... 86,914 119,375
15,200 WorldCorp, Inc. (a) -- TRANSPORTATION........ 138,291 102,600
------------ ------------
4,495,206 5,412,449
------------ ------------
TOTAL COMMON STOCKS.......................... $11,354,736 $13,265,259
------------ ------------
------------ ------------
</TABLE>
PREFERRED STOCKS-0.23%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Cost Market
Shares (b)(d) Value (c)(d)
----- -------- ------------
<C> <S> <C> <C>
GERMANY-0.23%
250 Volkswagen AG -- AUTOMOBILE MANUFACTURERS.... $53,169 $ 68,489
-------- ------------
</TABLE>
CORPORATE BONDS-INVESTMENT GRADE-27.70%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
Principal & Poor's Market
Amount (d) Rating Cost (b)(d) Value (c)(d)
------------- ------------- ----------- ------------
<C> <S> <C> <C> <C>
AUSTRALIA-1.26%
450,000 Australian Government (Australian Dollar),
9.75% 3-15-2002............................ NA $ 369,172 $ 369,867
----------- ------------
CANADA-1.48%
380,000 Canadian Government (Canadian Dollar), 7.50%
12-1-2003.................................. AA+ 265,249 279,255
100,000 Canadian Government (Canadian Dollar), 7.50%
9-1-2000................................... NA 72,647 74,879
100,000 Canadian Government (Canadian Dollar), 9.75%
12-1-2001.................................. AAA 81,812 81,812
----------- ------------
419,708 435,946
----------- ------------
DENMARK-2.58%
1,900,000 Kingdom of Denmark (Danish Krone), 7.00%
12-15-2004................................. NA 325,255 320,538
2,400,000 Kingdom of Denmark (Danish Krone), 8.00%
11-15-2001................................. NR 437,338 437,216
----------- ------------
762,593 757,754
----------- ------------
FRANCE-1.15%
1,600,000 French Treasury Bill (French Franc), 7.75%
4-12-2000.................................. NA 335,897 335,798
----------- ------------
GERMANY-6.39%
700,000 German Government (German Deutschemark),
6.50% 7-15-2003............................ NA 474,019 466,363
600,000 German Government (German Deutschemark),
7.125% 12-20-2002.......................... Aaa* 419,423 415,310
1,380,000 German Unity Fund (German Deutschemark),
8.00% 1-21-2002............................ NR 1,038,625 997,009
----------- ------------
1,932,067 1,878,682
----------- ------------
ITALY-2.14%
905,000,000 Italian Government (Italian Lira), 10.50%
11-1-2000.................................. AAA 585,196 628,148
----------- ------------
JAPAN-4.11%
54,000,000 Int'l Bank Reconstruction & Development
(Japanese Yen), 4.75% 12-20-2004........... AAA 576,542 552,953
20,000,000 Int'l Bank Reconstruction & Development
(Japanese Yen), 5.25% 3-20-2002............ AAA 213,526 207,761
</TABLE>
39
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL ASSET ALLOCATION SERIES (CONTINUED)
Schedule of Investments
June 30,1996 (Unaudited)
CORPORATE BONDS-INVESTMENT GRADE-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount (d) Rating Cost (b)(d) Value (c)(d)
------------- ------------- ----------- ------------
<C> <S> <C> <C> <C>
41,000,000 Japan Development Bank (Japanese Yen), 6.50%
9-20-2001.................................. Aaa* $ 486,500 $ 446,936
----------- ------------
1,276,568 1,207,650
----------- ------------
NETHERLANDS-1.63%
250,000 Netherlands Government (Dutch Guilder), 5.75%
1-15-2004.................................. NA 150,870 142,943
500,000 Netherlands Government (Dutch Guilder), 9.00%
1-15-2001.................................. NA 347,211 334,656
----------- ------------
498,081 477,599
----------- ------------
SPAIN-0.89%
30,000,000 Spanish Government (Spanish Peseta), 11.30%
1-15-2002.................................. NR 265,436 262,889
----------- ------------
SWEDEN-3.66%
1,100,000 Swedish Government (Swedish Krona), 10.25%
5-5-2000................................... Aa1* 157,956 182,899
3,300,000 Swedish Government (Swedish Krona), 13.00%
6-15-2001.................................. Aa1* 594,092 608,107
300,000 Swedish Government (US Dollar), 4.50%
3-24-1999.................................. AA+ 284,977 284,250
----------- ------------
1,037,025 1,075,256
----------- ------------
UNITED KINGDOM-2.41%
70,000 United Kingdom Treasury (British Pound),
7.75% 9-8-2006............................. NA 104,242 107,305
350,000 United Kingdom Treasury (British Pound),
9.75% 8-27-2002............................ Aaa* 586,517 602,122
----------- ------------
690,759 709,427
----------- ------------
TOTAL CORPORATE BONDS - INVESTMENT GRADE..... $8,172,502 $ 8,139,016
----------- ------------
----------- ------------
</TABLE>
U.S. GOVERNMENT SECURITIES-9.64%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Cost (b) Value (c)
--------- ------------- ------------
<C> <S> <C> <C>
U.S. TREASURY SECURITIES-9.64%
NOTES:
$800,000 5.625% 2001.................................. $ 787,723 $ 772,749
650,000 6.25% 2000................................... 654,864 645,733
650,000 7.25% 2004................................... 688,215 672,952
200,000 7.50% 1996................................... 199,850 202,000
500,000 7.875% 2004.................................. 529,897 537,500
------------- ------------
TOTAL U.S. GOVERNMENT SECURITIES............. 2,860,549 2,830,934
------------- ------------
------------- ------------
TOTAL LONG-TERM DEBT SECURITIES.............. 11,033,051 10,969,950
------------- ------------
------------- ------------
TOTAL LONG-TERM INVESTMENTS.................. $ 22,440,956 $24,303,698
------------- ------------
------------- ------------
</TABLE>
SHORT-TERM INVESTMENTS-15.16%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)(d)
----------- ------------
<C> <S> <C>
BANKS-15.16%
$4,453,185 First Trust Money Market Variable Rate Time
Deposit, Current rate -- 5.13%............. $ 4,453,185
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$26,894,141)(B)............................ $28,756,883
------------
------------
</TABLE>
(a) Presently non-income producing.
(b) At June 30, 1996, the cost of securities for federal income tax purposes
was $26,894,141 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation........................... $ 2,257,897
Unrealized depreciation........................... (395,155)
---------------------------------------------------------------
Net unrealized appreciation....................... $ 1,862,742
---------------------------------------------------------------
</TABLE>
(c) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Cost and market value is stated in U.S. dollars; principal amount is stated
in the currency indicated.
(e) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets.
* Moody's Rating
40
<PAGE>
FORTIS SERIES FUND, INC.
VALUE SERIES
Schedule of Investments
June 30, 1996 (Unaudited)
COMMON STOCKS-84.31%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
------- ----------- -------------
<C> <S> <C> <C>
ADVERTISING-PUBLIC RELATIONS-2.47%
1,900 Interpublic Group of Companies, Inc.......... $ 89,088 $ 89,062
----------- -------------
AEROSPACE AND EQUIPMENT-2.94%
600 Boeing Co.................................... 46,936 52,275
1,100 McDonnell Douglas Corp....................... 53,336 53,350
----------- -------------
100,272 105,625
----------- -------------
AIR FREIGHT-2.05%
900 Federal Express Corp. (a).................... 67,761 73,800
----------- -------------
AUTOMOBILE AND MOTOR VEHICLE PARTS-2.63%
2,500 Echlin, Inc.................................. 89,655 94,687
----------- -------------
BANKS-3.09%
1,200 Bank of New York Co., Inc.................... 62,448 61,500
600 Citicorp..................................... 48,749 49,575
----------- -------------
111,197 111,075
----------- -------------
BIOMEDICS, GENETICS RESEARCH AND DEVELOPMENT-2.70%
2,500 Mallinckrodt Group, Inc...................... 96,927 97,187
----------- -------------
BROADCASTING-6.95%
3,900 Comcast Corp., Special Class A............... 68,941 72,150
5,100 Tele Communications, Inc. (a)................ 93,621 92,437
2,200 Viacom, Inc. Class B (a)..................... 89,670 85,525
----------- -------------
252,232 250,112
----------- -------------
BROKERAGE AND INVESTMENT-1.36%
750 Merrill Lynch & Co., Inc..................... 46,292 48,844
----------- -------------
BUILDING MATERIALS-2.51%
2,100 Owens Corning Fiberglass(a).................. 84,121 90,300
----------- -------------
BUSINESS SERVICES AND SUPPLIES-1.47%
2,800 ADT, Ltd. (a)................................ 50,662 52,850
----------- -------------
COMPUTER-SOFTWARE-2.96%
700 Avnet, Inc................................... 35,066 29,487
400 Continuum, Inc. (a).......................... 16,616 23,200
1,800 FIServ, Inc. (a)............................. 54,462 54,000
----------- -------------
106,144 106,687
----------- -------------
DRUGS-3.57%
1,800 Mylan Laboratories, Inc...................... 36,859 31,050
1,550 Schering-Plough Corp......................... 90,926 97,262
----------- -------------
127,785 128,312
----------- -------------
ELECTRONIC-CONTROLS AND EQUIPMENT-2.97%
1,300 Cooper Industries, Inc....................... 53,139 53,950
1,400 Solectron Corp. (a).......................... 60,668 53,025
----------- -------------
113,807 106,975
----------- -------------
ELECTRONIC-SEMICONDUCTOR AND CAPACITOR-1.64%
2,500 Vishay Intertechnology, Inc.................. 61,508 59,062
----------- -------------
FOOD-GROCERY, MISCELLANEOUS-1.62%
1,700 Sysco Corp................................... 56,231 58,225
----------- -------------
HEALTH CARE SERVICES-1.93%
1,300 Columbia/HCA Healthcare Corp................. 69,640 69,388
----------- -------------
HOUSEHOLD PRODUCTS-1.26%
500 Procter & Gamble Co.......................... 43,345 45,313
----------- -------------
LEISURE TIME-AMUSEMENTS-0.57%
500 Circus Circus Enterprises, Inc. (a).......... 17,145 20,500
----------- -------------
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ----------- -------------
<C> <S> <C> <C>
MACHINERY-SPECIALTY-1.39%
2,200 Stewart and Stevenson Services, Inc.......... $ 60,525 $ 50,050
----------- -------------
MISCELLANEOUS-2.86%
700 General Electric Co.......................... 55,891 60,550
1,300 H & R Block, Inc............................. 46,452 42,413
----------- -------------
102,343 102,963
----------- -------------
NATURAL GAS TRANSMISSIONS-2.61%
1,900 Williams Companies, Inc...................... 93,475 94,050
----------- -------------
OFFICE EQUIPMENT AND SUPPLIES-4.58%
700 International Business Machines Corp......... 72,125 69,300
2,000 Pitney Bowes, Inc............................ 94,913 95,500
----------- -------------
167,038 164,800
----------- -------------
OIL AND GAS FIELD SERVICES-0.47%
200 Schlumberger, Ltd............................ 16,308 16,850
----------- -------------
OIL-CRUDE PETROLEUM AND GAS-3.99%
1,500 Anadarko Petroleum Corp...................... 80,926 87,000
2,900 Union Texas Petroleum Holdings, Inc.......... 55,804 56,550
----------- -------------
136,730 143,550
----------- -------------
OIL-REFINING-2.40%
800 Exxon Corp................................... 66,870 69,500
700 Lyondell Petrochemical Co.................... 16,849 16,888
----------- -------------
83,719 86,388
----------- -------------
PHOTOGRAPHIC-0.89%
600 Xerox Corp................................... 25,758 32,100
----------- -------------
PRECISION INSTRUMENTS-TEST, RESEARCH-1.51%
600 Emerson Electric Co.......................... 50,012 54,225
----------- -------------
RAILROAD AND RAILROAD EQUIPMENT-2.47%
1,100 Burlington Northern Santa Fe Corp............ 91,251 88,963
----------- -------------
REAL ESTATE-INVESTMENT TRUST-3.59%
2,100 Developers Diversified Realty Corp........... 64,184 66,938
2,200 Kimco Realty Corp............................ 59,776 62,150
----------- -------------
123,960 129,088
----------- -------------
RETAIL-DEPARTMENT STORES-4.83%
2,600 Federated Department Stores, Inc. (a)........ 87,399 88,725
1,900 May Department Stores Co..................... 86,361 83,125
64 Payless ShoeSource, Inc. (a)................. 1,765 2,032
----------- -------------
175,525 173,882
----------- -------------
RETAIL-MISCELLANEOUS-2.35%
900 Home Depot, Inc.............................. 44,899 48,600
1,000 Lowe's Companies, Inc........................ 34,803 36,125
----------- -------------
79,702 84,725
----------- -------------
RUBBER AND PLASTIC-2.19%
2,800 Unifi, Inc................................... 76,487 78,750
----------- -------------
TELECOMMUNICATIONS-1.05%
1,000 Lucent Technologies, Inc..................... 27,000 37,875
----------- -------------
UTILITIES-TELEPHONE-2.44%
1,200 A T & T Corp................................. 74,673 74,400
300 GTE Corp..................................... 13,212 13,425
----------- -------------
87,885 87,825
----------- -------------
TOTAL COMMON STOCKS.......................... $ 2,981,530 $ 3,034,088
----------- -------------
----------- -------------
</TABLE>
41
<PAGE>
FORTIS SERIES FUND, INC.
VALUE SERIES (CONTINUED)
Schedule of Investments
June 30, 1996 (Unaudited)
PREFERRED STOCKS-2.53%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
------- ------------- -------------
<C> <S> <C> <C>
PAPER-2.53%
3,600 James River Corp. of Virginia Preferred
Conv....................................... $ 89,832 $ 90,900
------------- -------------
TOTAL EQUITY INVESTMENTS..................... $ 3,071,362 $ 3,124,988
------------- -------------
------------- -------------
</TABLE>
SHORT-TERM INVESTMENTS-15.44%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
--------- -------------
<C> <S> <C>
DIVERSIFIED FINANCE-0.28%
$ 10,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.36%...................... $ 10,000
-------------
U.S. GOVERNMENT AGENCY-6.83%
75,000 Federal Home Loan Mortgage Corp., 5.36%,
7-22-1996.................................. 74,759
172,000 Federal Home Loan Mortgage Corp., 5.41%,
8-12-1996.................................. 170,913
-------------
245,672
-------------
U.S. OTHER DIRECT FEDERAL OBLIGATIONS-8.33%
200,000 Federal Home Loan Bank, 5.31%, 7-2-1996...... 199,971
100,000 Federal Home Loan Bank, 5.34%, 7-8-1996...... 99,884
-------------
299,855
-------------
TOTAL SHORT-TERM INVESTMENTS................. 555,527
-------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$3,626,889) (B)............................ $ 3,680,515
-------------
-------------
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 1996, the cost of securities for federal income tax purposes
was $3,626,889 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation........................... $ 113,788
Unrealized depreciation........................... (60,162)
---------------------------------------------------------------
Net unrealized appreciation....................... $ 53,626
---------------------------------------------------------------
</TABLE>
(c) See Note 1 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 0.47% of net assets as of June 30, 1996
42
<PAGE>
FORTIS SERIES FUND, INC.
GROWTH & INCOME SERIES
Schedule of Investments
June 30, 1996 (Unaudited)
COMMON STOCKS-79.79%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
AEROSPACE AND EQUIPMENT-1.39%
11,600 United Technologies Corp..................... $ 1,287,962 $ 1,334,000
------------ ------------
AUTOMOBILE AND MOTOR VEHICLE PARTS-2.07%
20,000 Echlin, Inc.................................. 666,164 757,500
27,000 Genuine Parts Co............................. 1,079,390 1,235,250
------------ ------------
1,745,554 1,992,750
------------ ------------
BUSINESS SERVICES AND SUPPLIES-2.85%
44,850 MBNA Corp.................................... 899,373 1,278,225
31,500 Omnicom Group, Inc........................... 969,907 1,464,750
------------ ------------
1,869,280 2,742,975
------------ ------------
CHEMICALS-0.99%
25,500 Chemed Corp.................................. 901,850 953,062
------------ ------------
COMPUTER-SOFTWARE-1.43%
21,300 Shared Medical Systems Corp.................. 675,637 1,368,525
------------ ------------
DRUGS-7.27%
29,300 Abbott Laboratories.......................... 1,110,928 1,274,550
33,000 American Home Products Corp.................. 1,437,860 1,984,125
24,000 Lilly Eli & Co., Inc......................... 920,025 1,560,000
17,000 Merck & Co., Inc............................. 725,181 1,098,625
15,000 Pfizer, Inc.................................. 578,937 1,070,625
------------ ------------
4,772,931 6,987,925
------------ ------------
ELECTRIC PRODUCTS-0.85%
20,400 AMP, Inc..................................... 781,760 818,550
------------ ------------
ENERGY & RELATED-2.15%
63,000 PanEnergy Corp............................... 1,691,001 2,071,125
------------ ------------
FINANCE COMPANIES-9.53%
27,500 American Express Co.......................... 969,270 1,227,187
43,200 Federal National Mortgage Association........ 975,787 1,447,200
50,000 Green Tree Financial Corp.................... 1,705,567 1,562,500
32,000 Household International, Inc................. 1,737,322 2,432,000
82,050 Mercury Finance Co........................... 979,113 1,046,137
19,600 Student Loan Marketing Association........... 1,020,328 1,450,400
------------ ------------
7,387,387 9,165,424
------------ ------------
HAND TOOLS AND GENERAL HARDWARE-1.85%
37,600 Snap-On, Inc................................. 1,718,410 1,781,300
------------ ------------
HOUSEHOLD PRODUCTS-1.73%
18,800 Clorox Co.................................... 1,266,517 1,666,150
------------ ------------
INSURANCE-2.69%
25,000 American Brands, Inc......................... 977,721 1,134,375
41,000 Safeco Corp. (a)............................. 1,399,125 1,450,375
------------ ------------
2,376,846 2,584,750
------------ ------------
MACHINERY-2.64%
41,000 Dresser Industries, Inc...................... 892,957 1,209,500
26,000 Tenneco, Inc................................. 1,413,238 1,329,250
------------ ------------
2,306,195 2,538,750
------------ ------------
MACHINERY-OIL AND WELL-4.63%
20,100 Halliburton Co............................... 737,316 1,115,550
24,000 Kerr-McGee Corp.............................. 1,331,176 1,461,000
41,600 Sonat, Inc................................... 1,352,679 1,872,000
------------ ------------
3,421,171 4,448,550
------------ ------------
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
MEDICAL SUPPLIES-3.85%
41,400 Baxter International, Inc.................... $ 1,539,566 $ 1,956,150
39,200 Pharmacia and UpJohn, Inc.................... 1,585,738 1,739,500
------------ ------------
3,125,304 3,695,650
------------ ------------
MISCELLANEOUS-2.97%
19,800 General Electric Co.......................... 1,277,216 1,712,700
35,000 H & R Block, Inc............................. 1,454,325 1,141,875
------------ ------------
2,731,541 2,854,575
------------ ------------
NATURAL GAS TRANSMISSIONS-4.28%
53,500 El Paso Natural Gas Co....................... 1,669,048 2,059,750
41,500 Williams Companies, Inc...................... 1,586,546 2,054,250
------------ ------------
3,255,594 4,114,000
------------ ------------
NATURAL RESOURCES-1.76%
41,500 Enron Corp................................... 1,467,825 1,696,312
------------ ------------
OIL-CRUDE PETROLEUM AND GAS-3.03%
22,000 Amoco Corp................................... 1,454,173 1,592,250
40,300 Baker Hughes, Inc............................ 842,123 1,324,863
------------ ------------
2,296,296 2,917,113
------------ ------------
PRINTING-1.10%
54,000 New England Business Service, Inc............ 1,168,797 1,053,000
------------ ------------
PUBLISHING-2.82%
37,800 McGraw-Hill Companies, Inc................... 1,492,990 1,729,350
23,200 Readers Digest Association, Inc. Class A
Non-Voting................................. 1,086,830 986,000
------------ ------------
2,579,820 2,715,350
------------ ------------
RAILROAD AND RAILROAD EQUIPMENT-1.10%
76,500 Tranz Rail Holdings, Ltd. ADR (a)............ 956,250 1,061,438
------------ ------------
RETAIL-DEPARTMENT STORES-2.40%
19,200 JC Penney Company, Inc....................... 925,336 1,008,000
26,800 Sears Roebuck & Co........................... 886,773 1,303,150
------------ ------------
1,812,109 2,311,150
------------ ------------
RETAIL-MISCELLANEOUS-1.04%
33,500 Rite Aid Corp................................ 809,055 996,625
------------ ------------
RETAIL-SPECIALTY AND SPECIALTY MAIL ORDER-1.83%
77,000 Intimate Brands, Inc......................... 1,137,947 1,761,375
------------ ------------
TELECOMMUNICATIONS-3.24%
16,700 A T & T Corp................................. 957,068 1,035,400
37,100 Beneficial Corp.............................. 1,802,661 2,082,238
------------ ------------
2,759,729 3,117,638
------------ ------------
TOBACCO-1.84%
17,000 Philip Morris Companies, Inc................. 1,236,654 1,768,000
------------ ------------
UTILITIES-TELEPHONE-6.46%
53,400 Frontier Corp................................ 1,369,424 1,635,375
30,000 GTE Corp..................................... 1,278,350 1,342,500
40,500 Sprint Corp.................................. 1,437,021 1,701,000
23,000 Telecom Corp. of New Zealand Ltd. ADS........ 1,432,604 1,535,250
------------ ------------
5,517,399 6,214,125
------------ ------------
TOTAL COMMON STOCKS.......................... $ 63,056,821 $ 76,730,187
------------ ------------
------------ ------------
</TABLE>
43
<PAGE>
FORTIS SERIES FUND, INC.
GROWTH & INCOME SERIES (CONTINUED)
Schedule of Investments
June 30, 1996 (Unaudited)
SHORT-TERM INVESTMENTS-19.78%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
----------- ------------
<C> <S> <C>
BANKS-1.30%
$1,248,000 First Trust Money Market Variable Rate Time
Deposit, Current rate -- 5.13%............. $ 1,248,000
------------
DIVERSIFIED FINANCE-3.44%
3,310,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.36%...................... 3,310,000
------------
U.S. GOVERNMENT AGENCY-7.98%
2,900,000 Federal Home Loan Mortgage Corp., 5.30%,
7-15-1996.................................. 2,893,729
1,900,000 Federal Home Loan Mortgage Corp., 5.40%,
8-12-1996.................................. 1,887,995
2,900,000 Federal National Mortgage Assoc., 5.38%,
7-26-1996.................................. 2,888,941
------------
7,670,665
------------
U.S. OTHER DIRECT FEDERAL OBLIGATIONS-7.06%
6,800,000 Federal Home Loan Bank, 5.31%, 7-2-1996...... 6,790,988
------------
TOTAL SHORT-TERM INVESTMENTS................. 19,019,653
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$82,076,474)(B)............................ $95,749,840
------------
------------
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 1996, the cost of securities for federal income tax purposes
was $82,076,474 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation........................... $14,634,339
Unrealized depreciation........................... (960,973)
---------------------------------------------------------------
Net unrealized appreciation....................... $13,673,366
---------------------------------------------------------------
</TABLE>
(c) See Note 1 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 2.70% of net assets as of June 30, 1996.
44
<PAGE>
FORTIS SERIES FUND, INC.
S & P 500 INDEX SERIES
Schedule of Investments
June 30, 1996 (Unaudited)
COMMON STOCKS-98.65%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
------- ----------- -----------
<C> <S> <C> <C>
BASIC INDUSTRY-5.25%
200 Air Products & Chemicals..................... $ 11,071 $ 11,550
200 Alco Standard Corp........................... 11,294 9,050
100 Armstrong World Industry..................... 5,579 5,762
100 Ashland, Inc................................. 3,840 3,962
100 Avery Dennison Corp.......................... 5,440 5,487
100 Ball Corp.................................... 2,979 2,875
100 Bemis, Inc................................... 3,140 3,500
100 Boise Cascade Corp........................... 4,391 3,662
400 Centex Corp.................................. 12,291 12,450
100 Champion International Corp.................. 4,540 4,175
200 Crown Cork & Seal............................ 9,569 9,000
400 Dow Chemical Co.............................. 34,205 30,400
800 Du Pont (E.I.) De Nemours.................... 65,683 63,300
100 Eastman Chemical Co.......................... 6,903 6,087
100 Fluor Corp................................... 6,803 6,537
100 FMC Corp. (a)................................ 6,766 6,525
100 Georgia-Pacific Corp......................... 6,928 7,100
100 Goodrich (B.F.) Co........................... 3,918 3,737
100 Great Lakes Chemical......................... 6,765 6,225
100 Hercules, Inc................................ 6,215 5,525
500 International Paper.......................... 19,833 18,437
100 James River Corp. of Virginia................ 2,503 2,637
400 Kimberly Clark Corp.......................... 29,752 30,900
200 Louisiana Pacific Corp....................... 4,784 4,425
100 Mead Corp.................................... 5,415 5,187
800 Monsanto Co.................................. 24,758 26,000
200 Morton International, Inc.................... 7,394 7,450
100 Nalco Chemical Co............................ 3,140 3,150
400 Occidental Pete Corp......................... 10,615 9,900
100 Potlatch Corp................................ 4,229 3,912
400 PPG Industries, Inc.......................... 20,364 19,500
200 Praxair, Inc................................. 7,896 8,450
100 Rohm & Haas Co............................... 6,653 6,275
100 Sherwin Williams Co.......................... 4,465 4,650
100 Sigma Aldrich Corp........................... 5,142 5,350
100 Stone Container Corp......................... 1,415 1,375
100 Temple Inland, Inc........................... 4,665 4,675
100 Union Camp Corp.............................. 4,978 4,875
200 Union Carbide Corp. Holdings Co.............. 9,671 7,950
100 W.R. Grace & Co.............................. 7,840 7,087
100 Westvaco Corp................................ 2,953 2,987
300 Weyerhaeuser Co.............................. 13,997 12,750
100 Willamette Industries, Inc................... 6,025 5,950
----------- -----------
426,807 410,781
----------- -----------
CAPITAL SPENDING-21.46%
200 3 Com Corp. (a).............................. 7,975 9,150
100 Advanced Micro Devices (a)................... 1,753 1,362
100 Alexander & Alexander........................ 2,006 1,975
300 Allied Signal, Inc........................... 17,784 17,137
100 Amdahl Corp. (a)............................. 847 1,075
400 Amp, Inc..................................... 16,564 16,050
100 Andrew Corp. (a)............................. 3,850 5,375
100 Apple Computer, Inc.......................... 2,512 2,100
200 Applied Materials, Inc. (a).................. 7,000 6,100
100 Autodesk, Inc................................ 3,942 2,987
500 Automatic Data Processing.................... 19,554 19,312
200 Bay Networks, Inc. (a)....................... 6,281 5,150
100 Block H & R, Inc............................. 3,653 3,262
500 Boeing Co.................................... 42,842 43,562
100 Briggs & Stratton Corp....................... 4,379 4,112
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ----------- -----------
<C> <S> <C> <C>
200 Browning Ferris Industries................... $ 6,406 $ 5,800
100 Cabletron System, Inc. (a)................... 6,653 6,862
100 Case Corp.................................... 5,103 4,800
400 Caterpillar, Inc............................. 26,914 27,100
100 Ceridian Corp. (a)........................... 4,328 5,050
100 Cincinnati Milacron.......................... 2,618 2,400
900 Cisco Systems, Inc. (a)...................... 44,728 50,962
500 Compaq Computer Corp. (a).................... 21,058 24,625
400 Computer Association International........... 28,543 28,500
100 Computer Sciences (a)........................ 7,078 7,475
100 Cooper Industries............................ 3,915 4,150
100 Crane Co..................................... 4,168 4,100
400 CUC International, Inc. (a).................. 13,539 14,200
100 Cummins Engine, Inc.......................... 4,593 4,037
200 Data General Corp.(a)........................ 2,512 2,600
400 Deere & Co................................... 16,615 16,000
100 Deluxe Corp.................................. 3,153 3,550
200 Digital Equipment Corp. (a).................. 11,056 9,000
300 Dover Corp................................... 14,073 13,837
100 Dow Jones & Co., Inc......................... 3,878 4,175
200 Dresser Industries, Inc...................... 6,156 5,900
100 DSC Communications (a)....................... 2,712 3,012
200 Dun & Bradstreet............................. 12,156 12,500
400 E M C Corp./Mass (a)......................... 8,514 7,450
100 Eaton Corp................................... 6,053 5,862
100 EG & G, Inc.................................. 2,066 2,137
300 Emerson Electric Co.......................... 24,485 27,112
300 First Data Corp.............................. 22,099 23,887
100 Foster Wheeler Corp.......................... 4,566 4,487
100 General Dynamics Corp........................ 5,840 6,200
2,500 General Electric Co.......................... 201,669 216,250
100 General Signal Corp.......................... 3,841 3,787
100 Genuine Parts Co............................. 4,515 4,575
100 Giddings & Lewis, Inc........................ 1,875 1,625
100 Grainger (W.W.), Inc......................... 6,715 7,750
300 Harnischfeger Industries..................... 12,274 9,975
100 Harris Corp.................................. 6,243 6,100
800 Hewlett Packard Co........................... 78,493 79,700
200 Honeywell, Inc............................... 10,721 10,900
200 Illinois Tool Works, Inc..................... 13,171 13,525
100 Ingersoll Rand Co............................ 4,103 4,375
1,200 Intel Corp................................... 73,840 88,125
200 Intergraph Corp. (a)......................... 2,300 2,425
800 International Business Machines.............. 87,380 79,200
100 Interpublic Group............................ 4,728 4,687
100 ITT Industries, Inc.......................... 2,578 2,512
100 Johnson Controls, Inc........................ 6,904 6,950
500 Laidlaw, Inc. ADR............................ 5,258 5,062
300 Lockheed Martin Corp......................... 23,612 25,200
300 LSI Logic Corp. (a).......................... 8,302 7,800
100 Marsh & McLennan Companies................... 9,378 9,650
100 McDermott International, Inc................. 1,940 2,087
400 McDonnell Douglas Corp....................... 18,919 19,400
200 Micron Technology, Inc....................... 6,306 5,175
900 Microsoft Corp. (a).......................... 97,629 108,112
600 Minnesota Mining & Manufacturing Co.......... 39,999 41,400
900 Motorola, Inc................................ 51,230 56,587
100 National Semiconductor (a)................... 1,403 1,550
100 National Service Industry.................... 3,893 3,912
400 Northern Telecom, Ltd........................ 20,080 21,750
100 Northrop Grumman Co.......................... 6,093 6,812
400 Novell, Inc. (a)............................. 5,400 5,550
</TABLE>
45
<PAGE>
FORTIS SERIES FUND, INC.
S & P 500 INDEX SERIES (CONTINUED)
Schedule of Investments
June 30, 1996 (Unaudited)
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ----------- -----------
<C> <S> <C> <C>
100 Ogden Corp................................... $ 1,954 $ 1,812
1,000 Oracle System Corp. (a)...................... 32,953 39,437
100 Owens Corning (a)............................ 4,040 4,300
100 Pall Corp.................................... 2,590 2,412
100 Parker Hannifin Corp......................... 3,778 4,237
100 Perkin Elmer Corp............................ 5,191 4,825
200 Pitney Bowes, Inc............................ 9,746 9,550
100 Raychem Corp................................. 7,556 7,187
300 Raytheon Co.................................. 15,387 15,487
300 Rockwell International Corp.................. 17,474 17,175
100 Ryder System, Inc............................ 2,740 2,812
100 Safety Kleen Corp............................ 1,440 1,750
100 Scientific Atlanta........................... 1,790 1,550
300 Service Corp. International.................. 15,773 17,250
100 Shared Medical System Corp................... 6,355 6,425
200 Silicon Graphics (a)......................... 5,006 4,800
200 Snap-On, Inc................................. 9,533 9,475
200 Stanley Works................................ 6,266 5,950
300 Sun Microsystem, Inc. (a).................... 14,862 17,662
100 Tandem Computers, Inc.(a).................... 890 1,237
100 Tektronix, Inc............................... 3,816 4,475
100 Teledyne, Inc................................ 2,815 3,612
200 Tellabs, Inc. (a)............................ 11,178 13,375
300 Texas Instruments, Inc....................... 15,099 14,962
100 Textron, Inc................................. 8,078 7,987
200 Thomas & Betts Corp.......................... 7,883 7,500
100 Timken Co.................................... 4,091 3,875
100 Trinova Corp................................. 3,431 3,337
100 TRW, Inc..................................... 8,928 8,987
200 Tyco International, Ltd., Class B............ 7,156 8,150
200 Unisys Corp.(a).............................. 1,231 1,425
200 United Technologies Corp..................... 22,634 23,000
600 Westinghouse Electric Co..................... 11,595 11,250
700 WMX Technologies, Inc........................ 23,114 22,925
600 Xerox Corp................................... 27,657 32,100
----------- -----------
1,611,342 1,681,280
----------- -----------
CONSUMER DISCRETIONARY-12.59%
400 Albertsons, Inc.............................. 15,343 16,550
100 American Greetings Corp...................... 2,775 2,737
300 American Stores Co........................... 11,015 12,375
100 Bally Entertainment Corp. (a)................ 2,129 2,750
100 Black & Decker Mfg. Co....................... 3,765 3,862
100 Brown Group, Inc............................. 1,568 1,737
100 Brunswick Corp............................... 2,328 2,000
100 Charming Shoppes, Inc. (a)................... 519 706
600 Chrysler Corp................................ 38,474 37,200
200 Circuit City Store........................... 6,032 7,225
400 Comcast Corp................................. 7,210 7,400
100 Cooper Tire & Rubber......................... 2,590 2,225
100 Dana Corp.................................... 3,315 3,100
200 Darden Restaurant............................ 2,706 2,150
100 Dayton Hudson Corp........................... 8,503 10,312
100 Dillard Department Stores.................... 3,490 3,650
1,000 Disney (Walt) Co. Holdings................... 63,499 62,875
200 Donnelley (R.R.) & Sons...................... 6,956 6,975
100 Echlin, Inc.................................. 3,665 3,787
400 Federated Department Store (a)............... 13,518 13,650
100 Fleetwood Enterprises........................ 2,516 3,100
200 Fleming Co., Inc............................. 3,108 2,875
1,800 Ford Motor Co................................ 62,803 58,275
100 Fruit of the Loom, Inc. (a).................. 2,578 2,550
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ----------- -----------
<C> <S> <C> <C>
200 Gannett, Inc................................. $ 13,782 $ 14,150
400 Gap, Inc..................................... 11,477 12,850
100 General Instruments Corp. (a)................ 3,106 2,887
1,100 General Motors Corp.......................... 60,253 57,612
100 Giant Foods, Inc............................. 3,315 3,587
200 Goodyear Tire & Rubber Co.................... 10,256 9,650
100 Great Atlantic & Pacific Tea Co.............. 3,406 3,287
100 Harcourt General, Inc........................ 4,565 5,000
100 Harland John H. Co........................... 2,691 2,462
100 Harrah's Entertainment, Inc. (a)............. 2,965 2,825
100 Hasbro, Inc.................................. 3,715 3,575
100 Hilton Hotels Corp........................... 10,429 11,250
700 Home Depot, Inc.............................. 34,710 37,800
100 Jostens, Inc................................. 1,981 1,975
100 King World Productions, Inc. (a)............. 4,141 3,637
500 Kmart Corp. (a).............................. 4,765 6,187
100 Knight-Ridder, Inc........................... 7,129 7,250
200 Kroger Co. (a)............................... 8,034 7,900
500 Limited (The), Inc........................... 10,179 10,750
100 Liz Claiborne, Inc........................... 3,440 3,462
100 Longs Drug Stores, Inc....................... 4,429 4,462
200 Lowe's Companies, Inc........................ 7,156 7,225
100 Luby's Cafeterias, Inc....................... 2,429 2,350
200 Mariott International, Inc................... 9,784 10,750
200 Masco Corp................................... 5,781 6,050
300 Mattel, Inc.................................. 8,221 8,587
400 May Department Stores Co..................... 18,388 17,500
100 Maytag Corp.................................. 2,040 2,087
1,100 McDonald's Corp.............................. 53,191 51,425
200 McGraw Hill Companies, Inc................... 9,224 9,150
100 Melville Corp................................ 3,628 4,050
100 Mercantile Stores Co., Inc................... 6,104 5,862
100 Meredith Corp................................ 4,604 4,175
100 Moore Corp., Ltd............................. 1,940 1,887
100 Nacco Industries, Inc........................ 6,116 5,537
100 Navistar International Corp. (a)............. 1,040 987
200 New York Times Co............................ 5,982 6,525
200 Nike, Inc., Class B.......................... 17,357 20,550
100 Nordstrom, Inc............................... 4,850 4,450
200 Outboard Marine Corp......................... 3,787 3,625
100 Paccar, Inc.................................. 4,600 4,900
400 Penney (J.C.), Inc........................... 20,339 21,000
100 Pep Boys Manny Moe & Jack.................... 3,328 3,400
200 Price/Costco, Inc. (a)....................... 3,775 4,325
100 Reebok International, Ltd.................... 2,778 3,362
100 Rite Aid Corp................................ 3,103 2,975
100 Russell Corp................................. 2,818 2,762
100 Ryans Family Steak (a)....................... 925 925
600 Sears Roebuch & Co........................... 29,395 29,175
200 Shoneys, Inc. (a)............................ 2,183 2,175
100 Springs Industries, Inc., Class A............ 4,416 5,050
100 Stride Rite Corp............................. 904 825
100 Supervalu, Inc............................... 3,115 3,150
300 Sysco Corp................................... 10,012 10,275
100 Tandy Corp................................... 4,628 4,737
800 Tele Communications TCI Group, Inc. (a)...... 14,825 14,500
300 Tenneco, Inc................................. 16,535 15,337
600 Time Warner, Inc............................. 24,724 23,550
200 Times Mirror Co., Class A.................... 8,369 8,700
100 TJX Companies, Inc........................... 2,528 3,375
300 Toys"R"US, Inc. (a).......................... 8,109 8,550
100 Tribune Co................................... 6,590 7,262
</TABLE>
46
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ----------- -----------
<C> <S> <C> <C>
500 US West Media Group (a)...................... $ 10,327 $ 9,125
100 V F Corp..................................... 5,565 5,962
100 Variety Corp. (a)............................ 4,429 4,812
600 Viacom, Inc., Class B (a).................... 24,570 23,325
3,200 Wal-Mart Stores, Inc......................... 76,505 81,200
300 Walgreen Co.................................. 9,587 10,050
100 Wendy's International, Inc................... 1,816 1,863
100 Whirlpool Corp............................... 5,553 4,963
200 Winn Dixie Stores, Inc....................... 6,806 7,075
100 Woolworth Corp.(a)........................... 1,541 2,250
----------- -----------
975,493 986,331
----------- -----------
CONSUMER STAPLES-13.44%
100 Alberto-Culver Co............................ 3,744 4,638
200 American Brands, Inc......................... 8,531 9,075
400 Anheuser Busch Companies, Inc................ 27,965 30,000
700 Archer-Daniels Midland....................... 13,177 13,388
200 Avon Products, Inc........................... 8,616 9,025
100 Brown Forman Corp............................ 4,041 4,000
400 Campbell Soup Co............................. 25,054 28,200
100 Clorox Co.................................... 8,641 8,863
3,900 Coca Cola Co................................. 169,119 190,613
300 Colgate Palmolive Co......................... 23,574 25,425
400 Conagra, Inc................................. 16,714 18,150
100 Coors Adolph Co., Class B.................... 1,818 1,788
300 CPC International, Inc....................... 20,486 21,600
100 Dial Corp.................................... 2,828 2,863
500 Eastman Kodak Co............................. 36,355 38,875
100 Ecolab, Inc.................................. 3,016 3,300
200 General Mills, Inc........................... 11,706 10,900
700 Gillette Co.................................. 38,299 43,663
600 Heinz (H.J.) Co.............................. 20,049 18,225
100 Hershey Foods Corp........................... 7,491 7,338
100 International Flavors & Fragrance, Inc....... 4,803 4,763
2,000 Johnson & Johnson Co......................... 93,408 99,000
300 Kellogg Co................................... 22,060 21,975
200 Newell Co.................................... 5,406 6,125
2,400 Pepsico, Inc................................. 77,440 84,900
1,200 Philip Morris Co., Inc....................... 110,259 124,800
100 Pioneer Hi Bred International................ 5,291 5,288
100 Polaroid Corp................................ 4,592 4,563
1,000 Procter & Gamble Co.......................... 86,950 90,625
200 Quaker Oats Co............................... 7,009 6,825
100 Ralston-Ralston Purina Group................. 6,728 6,413
200 Rubbermaid, Inc.............................. 5,731 5,450
700 Sara Lee Corp................................ 23,165 22,663
600 Seagrams, Ltd................................ 19,995 20,175
100 Tupperware Corp. (a)......................... 3,888 4,225
200 Unilever N.V................................. 27,206 29,025
400 UST, Inc..................................... 13,114 13,700
100 Whitman Corp................................. 2,428 2,413
200 Wrigley Jr., William Co...................... 10,945 10,100
----------- -----------
981,642 1,052,957
----------- -----------
ENERGY & RELATED-9.35%
100 Amerada Hess Corp............................ 5,491 5,363
700 Amoco Corp................................... 50,873 50,663
200 Atlantic Richfield........................... 23,756 23,700
300 Baker Hughes, Inc............................ 9,411 9,863
100 Burlington Resources, Inc.................... 3,716 4,300
1,100 Chevron Corp................................. 63,423 64,900
100 Coastal Corp................................. 3,966 4,175
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ----------- -----------
<C> <S> <C> <C>
100 Columbia Gas Systems, Inc.................... $ 4,553 $ 5,213
100 Cons Natural Gas............................. 4,366 5,225
100 Eastern Enterprises.......................... 3,504 3,325
400 Enron Corp................................... 15,568 16,350
100 Enserch Corp................................. 1,628 2,175
1,800 EXXON Corp................................... 149,252 156,375
200 Halliburton Co............................... 11,172 11,100
100 Helmerich & Payne............................ 3,704 3,663
100 Kerr-McGee Corp.............................. 6,353 6,088
200 Louisiana Land & Exploration Co.............. 10,933 11,525
600 Mobil Corp................................... 69,220 67,275
100 Nicor, Inc................................... 2,704 2,838
100 Noram Energy Corp............................ 928 1,088
100 Oneok, Inc................................... 2,617 2,500
100 Oryx Energy Co. (a).......................... 1,416 1,625
100 Pacific Enterprises.......................... 2,591 2,963
200 PanEnergy Corp............................... 6,334 6,575
100 Pennzoil Co.................................. 4,329 4,625
100 Peoples Energy Corp., and Rights............. 3,129 3,350
500 Phillips Pete Co............................. 20,042 20,938
100 Rowan Companies, Inc. (a).................... 1,278 1,475
800 Royal Dutch Petroleum........................ 115,181 123,000
100 Santa Fe Energy Resources (a)................ 1,053 1,188
400 Schlumberger, Ltd............................ 33,116 33,700
100 Sonat, Inc................................... 3,616 4,500
100 Sun Co., Inc................................. 2,903 3,038
400 Texaco, Inc.................................. 34,065 33,550
400 Unocal Corp.................................. 13,164 13,500
500 USX-Marathon Group........................... 10,221 10,063
100 Western Atlas, Inc. (a)...................... 6,016 5,825
100 Williams Companies, Inc...................... 5,041 4,950
----------- -----------
710,633 732,569
----------- -----------
FINANCE-13.35%
300 Aetna Life & Casualty Co..................... 21,765 21,450
100 Ahmanson H F & Co............................ 2,453 2,700
600 Allstate Corp................................ 25,199 27,375
700 American Express Co.......................... 33,986 31,238
300 American General Corp........................ 10,573 10,913
700 American International Group, Inc............ 66,015 69,038
100 Aon Corp..................................... 5,294 5,075
700 Banc One Corp................................ 25,189 23,800
300 Bank New York, Inc........................... 15,735 15,375
200 Bank of Boston Corp.......................... 9,882 9,900
500 BankAmerica Corp............................. 39,054 37,875
100 Bankers Trust of New York Corp............... 7,141 7,388
300 Barnett Banks, Inc........................... 18,724 18,300
100 Beneficial Corp.............................. 5,791 5,613
200 Boatmens Bancshares.......................... 7,875 8,025
700 Chase Manhattan Corp......................... 47,707 49,438
300 Chubb Corp................................... 14,409 14,963
100 Cigna Corp................................... 11,553 11,788
700 Citicorp..................................... 57,086 57,838
300 Comerica, Inc................................ 12,849 13,388
400 Corestates Financial Corp.................... 15,730 15,400
200 Dean Witter Discovery........................ 11,481 11,450
300 Federal Home Loan Mortgage................... 25,450 25,650
1,700 Federal National Mortgage Association........ 54,576 56,950
100 Fifth Third Bancorp.......................... 5,800 5,400
200 First Bank System, Inc....................... 11,657 11,600
500 First Chicago NBD Corp....................... 20,732 19,563
400 First Union Corp............................. 24,388 24,350
</TABLE>
47
<PAGE>
FORTIS SERIES FUND, INC.
S & P 500 INDEX SERIES (CONTINUED)
Schedule of Investments
June 30, 1996 (Unaudited)
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ----------- -----------
<C> <S> <C> <C>
500 Fleet Financial Group, Inc................... $ 20,992 $ 21,750
100 General Re Corp.............................. 14,641 15,225
100 Golden West Financial........................ 5,378 5,600
100 Great Western Financial Corp................. 2,416 2,388
200 Green Tree Financial......................... 6,795 6,250
100 Household International Corp................. 6,791 7,600
300 ITT Corp. (a)................................ 18,174 19,875
200 ITT Hartford Group........................... 10,270 10,650
100 Jefferson Pilot Corp......................... 5,416 5,163
100 Kaufman & Broad Home Corp.................... 1,381 1,450
300 KeyCorp...................................... 11,735 11,625
100 Lincoln National Corp........................ 5,153 4,625
200 Loews Corp................................... 14,957 15,775
500 MBNA Corp.................................... 15,037 14,250
200 Mellon Bank Corp............................. 11,085 11,400
300 Merrill Lynch & Co........................... 18,385 19,538
200 Morgan J. P. & Co., Inc...................... 16,606 16,925
200 Morgan Stanley Group......................... 10,406 9,825
400 National City Corp........................... 14,055 14,050
500 Nationsbank Corp............................. 40,530 41,313
500 Norwest Corp................................. 18,259 17,438
500 PNC Financial Corp........................... 15,355 14,875
100 Providian Corp............................... 4,453 4,288
100 Pulte Corp................................... 2,692 2,675
100 Republic New York Corp....................... 5,966 6,225
200 Safeco Corp.................................. 6,771 7,075
100 Salomon, Inc................................. 3,778 4,400
100 St. Paul Companies, Inc...................... 5,553 5,350
400 Suntrust Banks, Inc.......................... 14,474 14,800
100 Torchmark Corp............................... 4,491 4,375
100 Transamerica Corp............................ 7,516 8,100
750 Travelers Group, Inc......................... 32,292 34,219
300 U S Bancorp.................................. 10,435 10,838
100 UNUM Corp.................................... 6,003 6,225
100 US Life Corp................................. 2,806 3,288
100 USF & G Corp................................. 1,553 1,638
200 Wachavia Corp................................ 8,956 8,750
100 Wells Fargo & Co............................. 23,781 23,888
----------- -----------
1,033,431 1,045,567
----------- -----------
HEALTH CARE-9.42%
1,200 Abbott Labs.................................. 50,515 52,200
100 Allergan, Inc................................ 3,691 3,925
100 Alza Corp. (a)............................... 3,078 2,738
900 American Home Products....................... 49,565 54,113
500 Amgen, Inc. (a).............................. 29,185 27,000
100 Bard (C.R.), Inc............................. 3,578 3,400
100 Bausch & Lomb................................ 3,703 4,250
400 Baxter International, Inc.................... 18,328 18,900
300 Becton Dickinson............................. 24,249 24,075
100 Beverly Enterprises (a)...................... 1,116 1,200
100 Biomet, Inc. (a)............................. 1,441 1,438
300 Boston Scientific Corp. (a).................. 13,148 13,500
800 Bristol Myers Squibb......................... 68,692 72,000
600 Columbia/HCA Healthcare Corp................. 33,445 32,025
200 Community Psychiatric Center (a)............. 1,862 1,900
400 Corning, Inc................................. 14,618 15,350
200 Humana, Inc. (a)............................. 5,181 3,575
800 Lilly (Eli) & Co............................. 51,142 52,000
100 Mallinckrodt Group, Inc...................... 3,803 3,888
100 Manor Care, Inc.............................. 3,953 3,938
400 Medtronic, Inc............................... 22,464 22,400
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ----------- -----------
<C> <S> <C> <C>
1,900 Merck & Co., Inc............................. $ 119,908 $ 122,788
100 Millipore Corp............................... 4,442 4,188
900 Pfizer, Inc.................................. 61,859 64,238
700 Pharmacia & Upjohn, Inc...................... 28,915 31,063
600 Schering Plough Corp......................... 35,520 37,650
100 St. Jude Medical, Inc. (a)................... 3,775 3,350
200 Tenet Healthcare Corp. (a)................... 4,281 4,275
200 U S Healthcare, Inc.......................... 10,825 11,000
100 U S Surgical Corp............................ 3,303 3,100
300 United Healthcare............................ 17,512 15,150
500 Warner Lambert Co............................ 27,246 27,500
----------- -----------
724,343 738,117
----------- -----------
METAL & MINING-1.48%
300 Alcan Aluminium, Ltd......................... 9,573 9,150
300 Aluminum Company of America.................. 18,400 17,213
100 Armco, Inc. (a).............................. 541 500
100 ASARCO, Inc.................................. 3,381 2,763
500 Barrick Gold Corp............................ 15,267 13,563
100 Bethlehem Steel Corp. (a).................... 1,328 1,188
100 Cyprus Amax Mineral.......................... 2,841 2,263
100 Echo Bay Mines, Ltd.......................... 1,341 1,075
200 Engelhard Corp............................... 4,920 4,600
300 Freeport-McMoran Copper & Gold, Inc.......... 9,498 9,563
300 Homestake Mining Co.......................... 5,990 5,138
200 Inco, Ltd.................................... 6,434 6,450
200 Inland Steel Industries, Inc................. 4,008 3,925
100 Newmont Mining Corp.......................... 5,641 4,938
100 Nucor Corp................................... 5,978 5,063
100 Phelps Dodge Corp............................ 6,803 6,238
400 Placer Dome, Inc............................. 11,068 9,550
100 Reynolds Metals Co........................... 5,928 5,213
200 Santa Fe Pacific Gold Corp................... 3,034 2,825
100 USX-US Steel Group, Inc...................... 3,441 2,838
100 Worthington Industries, Inc.................. 2,000 2,088
----------- -----------
127,415 116,144
----------- -----------
TRANSPORTATION-1.55%
100 AMR Corp. (a)................................ 9,003 9,100
200 Burlington Northern Santa Fe................. 16,484 16,175
100 Caliber System, Inc.......................... 3,929 3,400
100 Conrail, Inc................................. 7,191 6,638
100 Cons Freightways, Inc........................ 2,219 2,113
400 CSX Corp..................................... 19,614 19,300
100 Delta Air Lines, Inc......................... 7,728 8,300
100 Federal Express Corp. (a).................... 7,028 8,200
200 Norfolk Southern Corp........................ 17,109 16,950
200 Southwest Airlines Co........................ 5,672 5,825
300 Union Pacific Corp........................... 20,673 20,963
100 USAir Group, Inc. (a)........................ 1,828 1,800
200 Yellow Corp. (a)............................. 2,675 2,650
----------- -----------
121,153 121,414
----------- -----------
UTILITIES-10.76%
800 Airtouch Communication (a)................... 24,221 22,600
200 Alltel Corp.................................. 6,406 6,150
300 American Electric Power, Inc................. 12,487 12,788
800 Ameritech Corp............................... 45,129 47,500
2,300 AT & T Corp.................................. 142,089 142,600
200 Baltimore Gas & Electric..................... 5,445 5,675
700 Bell Atlantic Corp........................... 44,062 44,625
1,400 Bellsouth Corp............................... 54,096 59,325
</TABLE>
48
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ----------- -----------
<C> <S> <C> <C>
200 Carolina Power and Light Co.................. $ 7,431 $ 7,600
300 Central & South West Corp.................... 8,450 8,700
200 Cinergy Corp................................. 6,031 6,400
600 Cons Edison Co. NY........................... 17,597 17,550
300 Dominion Resources, Inc...................... 11,760 12,000
200 DTE Energy Co................................ 6,270 6,175
300 Duke Power Co................................ 14,998 15,375
700 Edison International......................... 11,712 12,338
400 Entergy Corp................................. 10,943 11,350
300 FPL Group, Inc............................... 13,410 13,800
200 General Public Utility Co.................... 6,670 7,050
1,500 GTE Corp..................................... 66,098 67,125
400 Houston Industries, Inc...................... 8,888 9,850
1,000 MCI Communications Corp...................... 29,959 25,625
100 Niagara Mohawk Power......................... 666 775
100 Northern States Power Co..................... 4,891 4,938
600 Nynex Corp................................... 30,520 28,500
200 Ohio Edison Co............................... 4,581 4,375
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ----------- -----------
<C> <S> <C> <C>
600 Pacific Gas & Electric....................... $ 13,670 $ 13,950
600 Pacific Telesis Group........................ 20,345 20,250
400 Pacificorp................................... 8,465 8,900
400 Peco Energy Co............................... 10,214 10,400
200 PP&L Resources, Inc.......................... 4,881 4,725
400 Public Service Enterprise.................... 10,627 10,950
900 SBC Communications........................... 45,070 44,325
900 Southern Co.................................. 21,404 22,163
700 Sprint Corp.................................. 27,967 29,400
400 Texas Utilities Co........................... 16,564 17,100
400 Unicom Corp.................................. 11,089 11,150
100 Union Electric Co............................ 4,116 4,025
700 US West Communications Group................. 23,123 22,313
400 Worldcom, Inc. (a)........................... 19,710 22,150
----------- -----------
832,055 842,590
----------- -----------
TOTAL COMMON STOCKS.......................... $ 7,544,314 $ 7,727,750
----------- -----------
----------- -----------
</TABLE>
SHORT-TERM INVESTMENTS-1.44%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
--------- -----------
<C> <S> <C>
INVESTMENT COMPANY-1.44%
$112,471 First American Prime Obligation Fund, Current
rate -- 5.06%.............................. $ 112,471
-----------
TOTAL INVESTMENTS IN SECURITIES (COST:
$7,656,785) (B)............................ $7,840,221
-----------
-----------
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 1996, the cost of securities for federal income tax purposes
was $7,656,785 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation........................... $ 339,044
Unrealized depreciation........................... (155,608)
---------------------------------------------------------------
Net unrealized appreciation....................... $ 183,436
---------------------------------------------------------------
</TABLE>
(c) See Note 1 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 3.32% of net assets as of June 30, 1996
49
<PAGE>
FORTIS SERIES FUND, INC.
BLUE CHIP STOCK SERIES
Schedule of Investments
June 30, 1996 (Unaudited)
COMMON STOCKS-90.56%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
------- ----------- -----------
<C> <S> <C> <C>
AEROSPACE AND EQUIPMENT-2.10%
1,600 AlliedSignal, Inc............................ $ 93,323 $ 91,400
600 Lockheed Martin Corp......................... 47,256 50,400
----------- -----------
140,579 141,800
----------- -----------
AUTOMOBILE AND MOTOR VEHICLE PARTS-0.44%
500 Exide Corp................................... 11,790 12,125
500 Lear Corp. (a)............................... 14,467 17,625
----------- -----------
26,257 29,750
----------- -----------
BANKS-7.10%
800 Banc One Corp................................ 29,224 27,200
700 Bank of Boston Corp.......................... 34,708 34,650
1,000 Chase Manhattan Corp......................... 69,084 70,625
700 Citicorp..................................... 56,457 57,837
600 Fleet Financial Group, Inc................... 25,930 26,100
1,400 Mellon Bank Corp............................. 78,232 79,800
500 NationsBank Corp............................. 40,915 41,312
400 Northern Trust Corp.......................... 21,957 23,100
2,000 Norwest Corp................................. 73,172 69,750
200 Wells Fargo & Co............................. 52,181 47,775
----------- -----------
481,860 478,149
----------- -----------
BEVERAGE-1.98%
400 Coca-Cola Co................................. 16,781 19,550
800 Panamerican Beverages, Inc., Class A......... 32,686 35,800
2,200 PepsiCo, Inc................................. 71,139 77,825
----------- -----------
120,606 133,175
----------- -----------
BUSINESS SERVICES AND SUPPLIES-2.92%
2,100 ADT, Ltd. (a)................................ 37,979 39,637
500 Catalina Marketing Corp. (a)................. 39,714 45,750
1,400 First Data Corp.............................. 103,504 111,475
----------- -----------
181,197 196,862
----------- -----------
CHEMICALS-2.44%
800 Du Pont (E.I.) de Nemours & Co............... 65,824 63,300
1,300 Great Lakes Chemical Corp.................... 87,123 80,925
500 Union Carbide Corp. Holding Co............... 21,868 19,875
----------- -----------
174,815 164,100
----------- -----------
COMPUTER-HARDWARE-1.05%
1,400 Ceridian Corp. (a)........................... 64,524 70,700
----------- -----------
COMPUTER-SOFTWARE-6.08%
500 Adobe Systems, Inc........................... 16,275 17,937
1,300 Automatic Data Processing, Inc............... 49,928 50,212
800 BMC Software, Inc. (a)....................... 44,720 47,800
1,300 Informix Corp. (a)........................... 29,567 29,250
400 Microsoft Corp. (a).......................... 41,085 48,050
1,500 National Data Corp........................... 51,085 51,375
800 Oracle Corp. (a)............................. 25,441 31,550
700 Reynolds & Reynolds Co., Class A............. 31,395 37,275
1,600 Sungard Data Systems, Inc. (a)............... 56,940 64,200
800 Synopsys, Inc. (a)........................... 28,458 31,800
----------- -----------
374,894 409,449
----------- -----------
CONSUMER GOODS-0.38%
300 Colgate-Palmolive Co......................... 23,521 25,425
----------- -----------
DRUGS-5.92%
800 American Home Products Corp.................. 43,550 48,100
500 Amgen, Inc. (a).............................. 28,657 27,000
1,800 Johnson & Johnson............................ 85,195 89,100
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ----------- -----------
<C> <S> <C> <C>
500 Lilly Eli & Co., Inc......................... $ 32,352 $ 32,500
500 Merck & Co., Inc............................. 31,653 32,312
1,500 Pfizer, Inc.................................. 103,970 107,062
1,000 Schering-Plough Corp......................... 59,517 62,750
----------- -----------
384,894 398,824
----------- -----------
ELECTRIC PRODUCTS-1.05%
1,300 Honeywell, Inc............................... 71,632 70,850
----------- -----------
ELECTRIC-COMPONENTS AND PARTS-1.08%
1,100 Hubbell, Inc., Class B....................... 72,258 72,875
----------- -----------
ELECTRONIC-CONTROLS AND EQUIPMENT-0.44%
300 Hewlett-Packard Co........................... 28,659 29,887
----------- -----------
ELECTRONIC-SEMICONDUCTOR AND CAPACITOR-1.37%
400 Intel Corp................................... 29,518 29,375
900 Maxim Integrated Products, Inc. (a).......... 29,900 24,581
1,200 Xilinx, Inc. (a)............................. 38,966 38,100
----------- -----------
98,384 92,056
----------- -----------
FINANCE COMPANIES-8.97%
750 Aames Financial Corp......................... 18,940 26,906
1,000 Advanta Corp., Class B....................... 48,712 45,250
1,300 American Express Co.......................... 64,064 58,012
800 Associates First Capital Corp., Class A
(a)........................................ 25,909 30,100
1,300 Federal Home Loan Mortgage Corp.............. 112,069 111,150
1,500 Federal National Mortgage Association........ 49,599 50,250
1,000 Green Tree Financial Corp.................... 33,363 31,250
400 Household International, Inc................. 27,425 30,400
700 IMC Mortgage Co. (a)......................... 12,600 15,750
2,600 Money Store, Inc. (The)...................... 71,659 57,525
700 Student Loan Marketing Association........... 50,853 51,800
2,100 Travelers Group, Inc......................... 91,929 95,812
----------- -----------
607,122 604,205
----------- -----------
FOOD-GROCERY, MISCELLANEOUS-2.73%
2,000 Heinz (H.J.) Co.............................. 66,709 60,750
600 Ralston -- RALSTON PURINA GROUP.............. 39,356 38,475
1,400 Richfood Holdings, Inc....................... 41,804 45,500
1,200 Sara Lee Corp................................ 39,820 38,850
----------- -----------
187,689 183,575
----------- -----------
FOREST PRODUCTS-0.35%
400 Williamette Industries, Inc.................. 23,436 23,800
----------- -----------
GLASS AND GLASS PRODUCTS, POTTERY-0.97%
1,700 Corning, Inc................................. 61,001 65,238
----------- -----------
HEALTH CARE SERVICES-4.11%
1,700 Apria Healthcare Group, Inc. (a)............. 55,942 53,338
1,400 Columbia/HCA Healthcare Corp................. 77,960 74,725
600 PacifiCare Health Systems, Inc., Class B
(a)........................................ 48,785 40,650
1,600 United Healthcare Corp....................... 92,755 80,800
900 Vencor, Inc. (a)............................. 27,022 27,450
----------- -----------
302,464 276,963
----------- -----------
HOUSEHOLD PRODUCTS-1.83%
800 Procter & Gamble Co.......................... 69,336 72,500
1,200 Tupperware Corp. (a)......................... 49,869 50,700
----------- -----------
119,205 123,200
----------- -----------
INSURANCE-3.87%
1,300 Ace, Ltd..................................... 58,087 61,100
500 American International Group, Inc............ 47,118 49,313
1,200 Berkley (W.R.) Corp.......................... 52,307 50,100
</TABLE>
50
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ----------- -----------
<C> <S> <C> <C>
900 PMI Group, Inc............................... $ 38,589 $ 38,250
1,000 UNUM Corp.................................... 60,143 62,250
----------- -----------
256,244 261,013
----------- -----------
LEASING-0.14%
400 Oxford Resources Corp., Class A (a).......... 11,523 9,300
----------- -----------
LEISURE TIME-AMUSEMENTS-1.03%
1,100 Disney (Walt) Co............................. 69,921 69,163
----------- -----------
MACHINERY-0.99%
1,400 Teleflex, Inc................................ 64,351 66,850
----------- -----------
MACHINERY-OIL AND WELL-0.74%
900 Halliburton Co............................... 51,740 49,950
----------- -----------
MACHINERY-TOOLS-1.10%
1,700 Danaher Corp................................. 63,963 73,950
----------- -----------
MEDICAL SUPPLIES-1.52%
600 Medtronic, Inc. (and rights)................. 34,680 33,600
1,000 Millipore Corp............................... 40,185 41,875
600 Pharmacia and UpJohn, Inc.................... 25,736 26,625
----------- -----------
100,601 102,100
----------- -----------
MEDICAL TECHNOLOGY-0.60%
900 Boston Scientific Corp. (a).................. 40,725 40,500
----------- -----------
METALS-FABRICATING-0.55%
1,200 Newell Co.................................... 32,024 36,750
----------- -----------
MISCELLANEOUS-5.16%
900 CUC International, Inc. (a).................. 29,527 31,950
500 Deluxe Corp.................................. 15,803 17,750
1,100 Eastman Kodak Co............................. 81,283 85,525
1,200 General Electric Co.......................... 95,063 103,800
500 Jones Apparel Group, Inc. (a)................ 25,643 24,563
1,600 Olsten Corp.................................. 51,336 47,000
900 Tyco International, Ltd...................... 34,976 36,675
----------- -----------
333,631 347,263
----------- -----------
OFFICE EQUIPMENT AND SUPPLIES-1.59%
900 Alco Standard Corp........................... 49,327 40,725
600 International Business Machines Corp......... 65,793 59,400
300 Silicon Graphics, Inc. (a)................... 7,459 7,200
----------- -----------
122,579 107,325
----------- -----------
OIL AND GAS FIELD SERVICES-2.16%
1,100 BJ Services Co. (a).......................... 37,586 38,638
1,100 Cooper Cameron Corp. (a)..................... 48,818 48,125
700 Schlumberger, Ltd............................ 57,408 58,975
----------- -----------
143,812 145,738
----------- -----------
OIL-CRUDE PETROLEUM AND GAS-1.62%
600 British Petroleum Co. plc ADR................ 63,931 64,125
400 Mobil Corp................................... 45,787 44,850
----------- -----------
109,718 108,975
----------- -----------
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ----------- -----------
<C> <S> <C> <C>
OIL-REFINING-0.88%
500 Atlantic Richfield Co. (ARCO)................ $ 59,413 $ 59,250
----------- -----------
PAPER-1.38%
1,200 Kimberly-Clark Corp.......................... 89,985 92,700
----------- -----------
PHARMACEUTICALS-1.21%
1,500 SmithKline Beecham plc ADR................... 77,692 81,563
----------- -----------
PRECISION INSTRUMENTS-TEST, RESEARCH-0.80%
600 Emerson Electric Co.......................... 49,343 54,225
----------- -----------
RAILROAD AND RAILROAD EQUIPMENT-0.48%
400 Burlington Northern Santa Fe Corp............ 33,786 32,350
----------- -----------
RESTAURANTS AND FRANCHISING-1.04%
1,500 McDonald's Corp.............................. 73,020 70,125
----------- -----------
RETAIL-DEPARTMENT STORES-1.51%
1,700 Federated Department Stores, Inc. (a)........ 56,264 58,013
1,200 Kohl's Corp. (a)............................. 38,693 43,950
----------- -----------
94,957 101,963
----------- -----------
RETAIL-ELECTRIC PRODUCTS, RADIO, TV, AUDIO-0.64%
1,200 Circuit City Stores, Inc..................... 37,803 43,350
----------- -----------
RETAIL-MISCELLANEOUS-1.76%
1,300 General Nutrition Companies, Inc. (a)........ 32,942 22,750
1,200 Home Depot, Inc.............................. 59,462 64,800
1,300 Revco D.S., Inc. (a)......................... 35,830 31,038
----------- -----------
128,234 118,588
----------- -----------
RETAIL-SPECIALTY AND SPECIALTY MAIL ORDER-0.67%
2,000 Eckerd Corp. (a)............................. 46,627 45,250
----------- -----------
TELECOMMUNICATIONS-2.32%
700 3Com Corp. (a)............................... 30,470 32,025
700 A T & T Corp................................. 43,334 43,400
700 Cisco Systems, Inc. (a)...................... 33,142 39,638
1,300 Ericsson (L.M.) Telephone Co., Class B ADR 28,268 27,950
700 Teleport Communications Group, Inc. (a)...... 11,200 13,388
----------- -----------
146,414 156,401
----------- -----------
TOBACCO-1.39%
900 Philip Morris Companies, Inc................. 82,852 93,600
----------- -----------
UTILITIES-TELEPHONE-2.10%
1,200 MCI Communications Corp...................... 36,243 30,750
900 SBC Communications, Inc...................... 42,928 44,325
1,800 Vodafone Group plc ADR....................... 68,666 66,375
----------- -----------
147,837 141,450
----------- -----------
TOTAL COMMON STOCKS.......................... $ 6,013,792 $ 6,100,575
----------- -----------
----------- -----------
</TABLE>
51
<PAGE>
FORTIS SERIES FUND, INC.
BLUE CHIP STOCK SERIES (CONTINUED)
Schedule of Investments
June 30, 1996 (Unaudited)
SHORT-TERM INVESTMENTS-13.64%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
--------- -----------
<C> <S> <C>
BANKS-5.62%
$185,000 Bell Atlantic Financial Services Inc., 5.45%,
7-18-1996.................................. $ 184,505
195,000 Ciesco L.P., 5.46%, 8-7-1996................. 193,899
-----------
378,404
-----------
INVESTMENT COMPANY-3.72%
250,825 First American Prime Obligation Fund, Current
rate -- 5.06%.............................. 250,825
-----------
FINANCE COMPANIES-1.48%
100,000 Preferred Receivables Funding Corp., 5.54%,
7-8-1996................................... 99,879
-----------
INDUSTRIAL-2.82%
190,000 BMW U.S. Capital Corp., 5.44%, 7-2-1996...... 189,944
-----------
TOTAL SHORT-TERM INVESTMENTS................. 919,052
-----------
TOTAL INVESTMENTS IN SECURITIES (COST:
$6,932,844)(B)............................. $7,019,627
-----------
-----------
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 1996, the cost of securities for federal income tax purposes
was $6,932,844 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation........................... $ 238,713
Unrealized depreciation........................... (151,930)
---------------------------------------------------------------
Net unrealized appreciation....................... $ 86,783
---------------------------------------------------------------
</TABLE>
(c) See Note 1 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 4.97% of net assets as of June 30, 1996.
52
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL GROWTH SERIES
Schedule of Investments
June 30,1996 (Unaudited)
COMMON STOCKS-93.75%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
----------- ------------- -------------
<C> <S> <C> <C>
ARGENTINA-1.43%
150,000 Disco S.A. (a) -- FOOD-GROCERY,
MISCELLANEOUS.............................. $ 2,364,750 $ 3,318,750
72,000 Quilmes Industrial Societe Anonyme
ADS -- BEVERAGE............................ 756,000 738,000
------------- -------------
3,120,750 4,056,750
------------- -------------
AUSTRALIA-0.46%
52,000 News Corp.(The), Ltd ADR
(f) -- BROADCASTING........................ 916,065 1,222,000
7,200 OzEmail Ltd ADR (a)
(f) -- TELECOMMUNICATIONS.................. 100,800 92,700
------------- -------------
1,016,865 1,314,700
------------- -------------
AUSTRIA-2.96%
46,800 OMV Aktiengesellschaft (e) -- OIL-CRUDE
PETROLEUM AND GAS.......................... 4,739,434 4,740,151
15,000 Wolford AG -- APPAREL........................ 3,188,998 3,668,674
------------- -------------
7,928,432 8,408,825
------------- -------------
BELGIUM-1.24%
22,000 Barco NV -- TELECOMMUNICATIONS............... 2,395,529 3,525,168
------------- -------------
BRAZIL-0.49%
20,000 Telebras ADR (f) -- UTILITIES-TELEPHONE...... 832,500 1,392,500
------------- -------------
CANADA-0.31%
38,000 Rogers Cantel Mobile Communications, Inc.
Class B (a) -- TELECOMMUNICATIONS.......... 974,875 888,250
------------- -------------
CHILE-0.67%
69,100 Santa Isabel S.A. ADR (a)
(f) -- FOOD-GROCERY, MISCELLANEOUS......... 1,469,920 1,917,525
------------- -------------
FINLAND-2.13%
27,000 KCI Konecranes International Corp.
(e) -- MACHINERY........................... 397,927 656,708
148,000 Nokia (AB) K Shares -- TELECOMMUNICATIONS.... 2,478,815 5,405,971
------------- -------------
2,876,742 6,062,679
------------- -------------
FRANCE-2.44%
9,000 Castorama Dubois
Investisse -- RETAIL-MISCELLANEOUS......... 958,605 1,772,697
10,000 Chargeurs -- CONGLOMERATE.................... 2,717,597 2,842,802
31,000 Sanofi SA -- DRUGS........................... 1,730,549 2,323,153
------------- -------------
5,406,751 6,938,652
------------- -------------
GERMANY-2.92%
44,500 Puma AG (a) -- APPAREL....................... 1,545,524 1,602,088
57,000 SGL Carbon AG (a) -- STEEL AND IRON.......... 2,708,232 6,703,067
------------- -------------
4,253,756 8,305,155
------------- -------------
HONG KONG-1.98%
11,000 Asia Satellite Telecommunications Holdings
Ltd. (a) (f) -- UTILITIES-TELEPHONE........ 284,152 327,250
1,600,000 First Pacific Co. Ltd. -- MISCELLANEOUS...... 1,776,244 2,459,787
210,000 Hutchison Whampoa, Ltd. -- REAL ESTATE....... 1,379,712 1,321,231
150,000 Sun Hung Kai Properties, Ltd. -- REAL
ESTATE..................................... 1,292,660 1,516,374
------------- -------------
4,732,768 5,624,642
------------- -------------
HUNGARY-0.92%
240,000 MOL Magyar Olaj-es Gazipari Rt. GDS (a)
(e) -- OIL-REFINING........................ 1,944,000 2,620,656
------------- -------------
INDIA-0.73%
26,000 Bajaj Auto Ltd. GDR (a) (g) -- AUTOMOBILE
MANUFACTURERS.............................. 671,442 991,380
38,000 Indian Hotels Co., Ltd. (The) GDR (a) (g)
(f) -- HOTEL AND MOTEL..................... 630,800 1,087,940
------------- -------------
1,302,242 2,079,320
------------- -------------
INDONESIA-0.77%
74,000 P.T. Telekomunikasi Indonesia (a)
(f) -- UTILITIES-TELEPHONE................. 1,378,872 2,201,500
------------- -------------
ISRAEL-1.30%
84,000 ECI Telecom Ltd. (f) -- TELECOMMUNICATIONS... 1,662,746 1,953,000
46,000 Teva Pharmaceutical Industries, Ltd.
ADR -- DRUGS............................... 1,236,500 1,742,250
------------- -------------
2,899,246 3,695,250
------------- -------------
</TABLE>
53
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL GROWTH SERIES (CONTINUED)
Schedule of Investments
June 30,1996 (Unaudited)
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
----------- ------------- -------------
<C> <S> <C> <C>
ITALY-4.75%
78,000 De Rigo S.p.A. ADR (a) (f) -- CONSUMER
GOODS...................................... $ 2,129,250 $ 1,784,250
82,700 Fila Holdings S.p.A. ADR -- APPAREL.......... 1,943,696 7,132,875
30,000 Gucci Group (a)
(f) -- RETAIL-MISCELLANEOUS................ 660,000 1,935,000
52,000 Industrie Natuzzi S.p.A. ADR -- FURNITURE.... 1,160,467 2,665,000
------------- -------------
5,893,413 13,517,125
------------- -------------
JAPAN-7.73%
50,000 Amway Japan, Ltd. -- HOUSEHOLD PRODUCTS...... 2,426,926 2,507,260
30,000 Autobacs Seven Co.
Ltd. -- RETAIL-MISCELLANEOUS............... 2,959,769 2,899,304
27,000 Canon, Inc. ADR (f) -- OFFICE EQUIPMENT AND
SUPPLIES................................... 2,113,633 2,814,750
470 DDI Corp. -- TELECOMMUNICATIONS.............. 3,192,170 4,096,589
40,000 Kyocera Corp. -- ELECTRONIC-CONTROLS AND
EQUIPMENT.................................. 3,089,965 2,826,366
16,700 Matsushita Electric Industrial Co., Ltd.
ADR -- ELECTRONIC-CONTROLS AND EQUIPMENT... 2,772,445 3,106,200
369 Nippon Telegraph & Telephone
Corp. -- TELEPHONE SERVICES................ 3,179,997 2,731,801
15,000 Sony Corp. -- ELECTRONIC-CONTROLS AND
EQUIPMENT.................................. 982,413 986,037
------------- -------------
20,717,318 21,968,307
------------- -------------
MALAYSIA-0.52%
425,000 Technology Resources Industries
(a) -- TELECOMMUNICATIONS.................. 1,474,736 1,481,823
------------- -------------
MEXICO-0.54%
34,000 Panamerican Beverages, Inc. Class A
(f) -- BEVERAGE............................ 1,189,321 1,521,500
------------- -------------
NETHERLANDS-4.90%
70,000 IHC Caland NV -- MACHINERY-OIL AND WELL...... 1,402,766 3,444,688
90,000 Randstad Holdings NV -- BUSINESS SERVICES AND
SUPPLIES................................... 2,461,190 6,643,327
47,100 Toolex Alpha NV (a) -- MACHINERY-SPECIALTY... 1,057,427 1,130,400
24,000 Wolters Kluwer -- PUBLISHING................. 1,404,741 2,726,225
------------- -------------
6,326,124 13,944,640
------------- -------------
NORWAY-0.36%
36,000 Petroleum Geo-Services A/S ADR
(a) -- MACHINERY-OIL AND WELL.............. 1,117,375 1,021,500
------------- -------------
PERU-0.32%
450,000 CPT Telefonica Del Peru-B
S.A. -- UTILITIES-TELEPHONE................ 995,990 906,844
------------- -------------
PHILIPPINES-1.31%
1,550,000 Empire East Land Holdings, Inc. (a)
(e) -- REAL ESTATE......................... 855,313 946,594
294,500 Empire East Land Holdings, Inc. -- RIGHTS
(A) -- REAL ESTATE......................... 0 145,006
2,945,000 Megaworld Properties Holding, Inc.
(a) -- REAL ESTATE......................... 1,529,234 2,641,589
------------- -------------
2,384,547 3,733,189
------------- -------------
PORTUGAL-0.33%
35,800 Portugal Telecom SA
(f) -- UTILITIES-TELEPHONE................. 818,674 939,750
------------- -------------
SOUTH KOREA-0.48%
56,000 Korea Electric Power Corp.
(f) -- UTILITIES-ELECTRIC.................. 1,204,000 1,358,000
------------- -------------
SPAIN-0.42%
50,000 Continente Cent
Co. -- RETAIL-MISCELLANEOUS................ 1,038,064 1,185,547
------------- -------------
SWEDEN-3.40%
90,000 Astra AB 'B' -- DRUGS........................ 1,860,144 3,919,841
92,000 Ericsson (L.M.) Telephone Co., Class B ADR
(f) -- TELECOMMUNICATIONS.................. 1,136,250 1,978,000
95,000 Hoganas Class B -- MISCELLANEOUS............. 2,474,103 3,321,541
7,100 WM Data AB Class B -- BUSINESS SERVICES AND
SUPPLIES................................... 197,037 449,403
------------- -------------
5,667,534 9,668,785
------------- -------------
SWITZERLAND-1.28%
1,100 Ciba-Geigy AG -- DRUGS....................... 1,308,218 1,340,240
300 Roche Holdings AG, Genusschein
NVP -- DRUGS............................... 1,568,201 2,287,797
------------- -------------
2,876,419 3,628,037
------------- -------------
</TABLE>
54
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
----------- ------------- -------------
<C> <S> <C> <C>
THAILAND-0.43%
90,000 Bangkok Bank Co. Ltd. -- BANKS............... $ 997,301 $ 1,218,935
------------- -------------
UNITED KINGDOM-3.51%
550,000 Dixons Group plc -- RETAIL-ELECTRIC PRODUCTS,
RADIO, TV, AUDIO........................... 1,747,817 4,520,784
62,000 Harvey Nichols Group plc (a)
(e) -- RETAIL-CLOTHING..................... 254,381 324,651
450,000 Orange plc -- TELECOMMUNICATIONS............. 1,479,235 1,576,720
260,000 Powerscreen International
plc -- CONSTRUCTION........................ 1,304,787 1,842,187
360,000 Thorn Lighting Group plc -- ELECTRIC
PRODUCTS................................... 877,602 889,396
45,000 Videotron Holdings plc ADR (a)
(f) -- TELECOMMUNICATIONS.................. 787,500 838,125
------------- -------------
6,451,322 9,991,863
------------- -------------
UNITED STATES-42.72%
88,000 3Com Corp. (a) (f) -- TELECOMMUNICATIONS..... 1,155,000 4,026,000
68,000 American Oncology Resources, Inc. (a)
(f) -- HEALTH CARE SERVICES................ 1,217,584 1,479,000
226,000 Anixter International, Inc. (a) -- ELECTRIC
PRODUCTS................................... 4,382,467 3,361,750
112,800 ANSYS Inc. (a) -- COMPUTER-SOFTWARE.......... 1,401,988 1,480,500
90,000 Apple South, Inc. -- RESTAURANTS AND
FRANCHISING................................ 1,097,670 2,407,500
85,000 Applebees International, Inc.
(f) -- RESTAURANTS AND FRANCHISING......... 1,454,875 2,730,625
76,000 Applied Materials, Inc. (a)
(f) -- ELECTRONIC-CONTROLS AND EQUIPMENT... 1,866,800 2,318,000
60,000 AutoZone, Inc. (a)
(f) -- RETAIL-MISCELLANEOUS................ 1,430,967 2,085,000
75,000 Avant! Corp. (a) (f) -- COMPUTER-SOFTWARE.... 1,945,445 1,743,750
90,000 Bed, Bath & Beyond, Inc. (a)
(f) -- RETAIL-MISCELLANEOUS................ 991,875 2,407,500
28,000 Catalina Marketing Corp. (a) -- BUSINESS
SERVICES AND SUPPLIES...................... 1,240,539 2,562,000
56,000 Ceridian Corp. (a)
(f) -- COMPUTER-HARDWARE................... 2,791,040 2,828,000
76,000 Cheesecake Factory, Inc. (a)
(f) -- RESTAURANTS AND FRANCHISING......... 1,962,425 2,090,000
80,000 Cisco Systems, Inc. (a)
(f) -- TELECOMMUNICATIONS.................. 917,000 4,530,000
148,000 Credit Acceptance Corp. (a) (f) -- FINANCE
COMPANIES.................................. 3,167,200 3,108,000
45,000 Crown Cork & Seal Company Inc. (a)
(f) -- CONTAINERS AND PACKAGING............ 2,034,675 2,025,000
108,200 CUC International, Inc. (a)
(f) -- MISCELLANEOUS....................... 3,564,066 3,841,100
110,000 Data Processing Resources Corporation
(a) -- BUSINESS SERVICES AND SUPPLIES...... 2,271,475 3,038,750
17,000 Donna Karan International (a) -- APPAREL..... 408,000 476,000
320,000 Gartner Group, Inc. Class A (a)
(f) -- BUSINESS SERVICES AND SUPPLIES...... 1,600,000 11,720,000
90,000 Green Tree Financial Corp. (f) -- FINANCE
COMPANIES.................................. 2,972,661 2,812,500
27,000 HCIA, Inc. (a) -- HEALTH CARE SERVICES....... 1,174,950 1,701,000
130,000 Input/Output, Inc.
(a) -- COMPUTER-SOFTWARE................... 934,975 4,208,750
160,000 Korea Mobile Telecommunications-ADR
(a) -- TELEPHONE SERVICES.................. 2,580,000 2,740,000
172,200 Mercury Finance Co. (f) -- FINANCE
COMPANIES.................................. 1,937,907 2,195,550
31,500 Office Depot, Inc. (a)
(f) -- RETAIL-MISCELLANEOUS................ 544,628 641,812
72,000 Oracle Corp. (a) (f) -- COMPUTER-SOFTWARE.... 968,000 2,839,500
73,000 Owen Healthcare, Inc.(a) -- HEALTH CARE
SERVICES................................... 876,000 1,012,875
100,000 Parametric Technology Corp. (a)
(f) -- COMPUTER-SOFTWARE................... 1,506,616 4,337,500
35,000 R.P. Sherer Corp. (a) (f) -- DRUGS........... 1,400,000 1,588,125
37,000 Service Corp. International (f) -- BUSINESS
SERVICES AND SUPPLIES...................... 1,424,500 2,127,500
90,000 Steris Corp. (a) -- MEDICAL SUPPLIES......... 1,526,528 2,880,000
3,500 Sykes Enterprises Inc. (a) -- BUSINESS
SERVICES AND SUPPLIES...................... 63,000 172,375
80,000 Synopsys, Inc. (a) -- COMPUTER-SOFTWARE...... 1,733,112 3,180,000
60,000 Tellabs, Inc. (a)
(f) -- TELECOMMUNICATIONS.................. 1,613,430 4,012,500
60,000 Tidewater, Inc. (f) -- SHIP BUILDING,
SHIPPING................................... 2,104,500 2,632,500
55,000 Tommy Hilfiger Corp. (a) (f) -- APPAREL...... 2,159,675 2,949,375
41,000 Total Renal Care Holdings, Inc. (a)
(f) -- HEALTH CARE SERVICES................ 1,358,125 1,732,250
3,600 Trico Marine Services, Inc. (a) -- OIL AND
GAS FIELD SERVICES......................... 57,600 80,100
76,000 U.S. Robotics Corp. (a)
(f) -- COMPUTER-SOFTWARE................... 1,633,487 6,498,000
60,000 Viking Office Prodicts, Inc. (a)
(f) -- RETAIL-SPECIALTY AND SPECIALTY MAIL
ORDER...................................... 896,730 1,882,500
37,500 Western Atlas, Inc. (a) (f) -- OIL AND GAS
FIELD SERVICES............................. 1,713,488 2,184,375
171,000 Wisconsin Central Transportation Corp. (a)
(f) -- TRANSPORTATION...................... 1,943,225 5,557,500
40,000 Xilinx, Inc. (a) -- ELECTRONIC-SEMICONDUCTOR
AND CAPACITOR.............................. 541,220 1,270,000
------------- -------------
70,565,448 121,495,062
------------- -------------
TOTAL COMMON STOCKS.......................... $ 172,250,834 $ 266,612,479
------------- -------------
------------- -------------
</TABLE>
55
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL GROWTH SERIES (CONTINUED)
Schedule of Investments
June 30,1996 (Unaudited)
PREFERRED STOCKS-3.48%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
-------- ------------- -------------
<C> <S> <C> <C>
AUSTRALIA-0.19%
26,000 News Corp. (The), Ltd. Preferred ADR
(f) -- BROADCASTING........................ $ 395,785 $ 523,250
------------- -------------
GERMANY-3.29%
63,000 SAP AG Systeme
Preferred -- COMPUTER-SOFTWARE............. 2,010,751 9,362,220
------------- -------------
TOTAL PREFERRED STOCKS....................... 2,406,536 9,885,470
------------- -------------
TOTAL EQUITY INVESTMENTS..................... $ 174,657,370 $ 276,497,949
------------- -------------
------------- -------------
</TABLE>
SHORT-TERM INVESTMENTS-3.92%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
------------ -------------
<C> <S> <C>
BANKS-3.77%
$10,730,000 First Trust Money Market Variable Rate Time
Deposit, Current rate -- 5.13%............. $ 10,730,000
-------------
DIVERSIFIED FINANCE-0.15%
416,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.36%...................... 416,000
-------------
TOTAL SHORT-TERM INVESTMENTS................. 11,146,000
-------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$185,803,370) (B).......................... $ 287,643,949
-------------
-------------
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 1996, the cost of securities for federal income tax purposes
was $185,803,370 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation........................... $104,765,514
Unrealized depreciation........................... (2,924,935)
---------------------------------------------------------------
Net unrealized appreciation....................... $101,840,579
---------------------------------------------------------------
</TABLE>
(c) See Note 1 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.
(e) Common Stock 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 aggregate value of these securities
at June 30, 1996 was $9,288,760 which represents 3.27% of total net assets.
(f) Security is fully or partially on loan at June 30, 1996. See Note 1 of
accompanying Notes to Financial Statements.
(g) Common Stock 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 liquid securities. The aggregate value of these securities at
June 30, 1996 was $2,079,320 which represents .72% of total net assets.
56
<PAGE>
FORTIS SERIES FUND, INC.
GROWTH STOCK SERIES
Schedule of Investments
June 30, 1996 (Unaudited)
COMMON STOCKS-86.37%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
--------- ------------- -------------
<C> <S> <C> <C>
APPAREL-1.17%
135,000 Tommy Hilfiger Corp. (a)..................... $ 4,633,870 $ 7,239,375
------------- -------------
BIOMEDICS, GENETICS RESEARCH AND DEVELOPMENT-0.73%
82,500 Biogen, Inc. (a)............................. 4,408,687 4,527,187
------------- -------------
BROADCASTING-0.62%
87,000 America Online, Inc. (a)..................... 2,998,750 3,806,250
------------- -------------
BUSINESS SERVICES AND SUPPLIES-1.79%
144,600 AccuStaff, Inc. (a).......................... 4,040,104 3,940,350
89,603 First Data Corp.............................. 3,774,569 7,134,639
------------- -------------
7,814,673 11,074,989
------------- -------------
COMPUTER-SOFTWARE-18.62%
110,100 Ascend Communications, Inc. (a).............. 4,243,370 6,193,125
200,400 BMC Software, Inc. (a)....................... 5,037,454 11,973,900
121,200 Cascade Communications
Corp. (a).................................. 5,795,204 8,241,600
66,000 Computer Associates International, Inc....... 2,905,144 4,702,500
96,000 FORE Systems, Inc. (a)....................... 2,617,127 3,468,000
102,000 HBO & Co..................................... 1,879,788 6,910,500
574,700 Informix Corp. (a)........................... 6,142,361 12,930,750
148,000 Input/Output, Inc. (a)....................... 3,256,000 4,791,500
132,100 Microsoft Corp. (a).......................... 4,693,098 15,868,512
551,400 Oracle Corp. (a)............................. 2,035,424 21,745,837
289,800 Parametric Technology Corp. (a).............. 4,008,045 12,570,075
65,400 U.S. Robotics Corp. (a)...................... 4,217,953 5,591,700
------------- -------------
46,830,968 114,987,999
------------- -------------
ELECTRONIC-COMMUNICATION SECURITY-3.45%
149,000 ADC Telecommunications, Inc. (a)............. 4,839,814 6,705,000
133,500 Andrew Corp. (a)............................. 4,296,061 7,175,625
140,000 QUALCOMM, Inc. (a)........................... 5,296,387 7,437,500
------------- -------------
14,432,262 21,318,125
------------- -------------
ELECTRONIC-CONTROLS AND EQUIPMENT-1.53%
249,200 Solectron Corp. (a).......................... 6,957,771 9,438,450
------------- -------------
ELECTRONIC-SEMICONDUCTOR AND CAPACITOR-0.89%
75,000 Intel Corp................................... 3,206,523 5,507,812
------------- -------------
FINANCE-1.97%
215,000 Capital One Financial Corp................... 6,567,540 6,127,500
110,000 First USA, Inc............................... 6,370,511 6,050,000
------------- -------------
12,938,051 12,177,500
------------- -------------
FINANCE COMPANIES-6.29%
130,000 Advanta Corp., Class B....................... 6,451,250 5,882,500
344,000 Federal National Mortgage Association........ 6,763,724 11,524,000
100,000 Franklin Resources, Inc...................... 3,604,950 6,100,000
299,000 Green Tree Financial Corp.................... 9,883,524 9,343,750
471,250 Mercury Finance Co........................... 5,079,608 6,008,438
------------- -------------
31,783,056 38,858,688
------------- -------------
HEALTH CARE SERVICES-6.29%
234,700 Medaphis Corp. (a)........................... 8,822,596 9,329,325
247,000 Oxford Health Plans, Inc. (a)................ 6,932,431 10,157,875
108,000 PacifiCare Health Systems, Inc., Class B
(a)........................................ 7,289,411 7,317,000
102,000 PhyCor, Inc. (a)............................. 3,252,329 3,876,000
99,600 United Healthcare Corp....................... 4,296,512 5,029,800
102,000 Vencor, Inc. (a)............................. 3,196,495 3,111,000
------------- -------------
33,789,774 38,821,000
------------- -------------
<CAPTION>
Market
Shares Cost (b) Value (c)
--------- ------------- -------------
<C> <S> <C> <C>
HOTEL AND MOTEL-2.34%
226,700 Harrah's Entertainment, Inc. (a)............. $ 7,056,064 $ 6,404,275
97,000 HFS, Inc. (a)................................ 5,509,106 6,790,000
43,050 Promus Hotel Corp. (a)....................... 944,539 1,275,356
------------- -------------
13,509,709 14,469,631
------------- -------------
MACHINERY-OIL AND WELL-1.42%
310,000 Petroleum Geo-Services A/S ADR (a)(d)........ 8,039,301 8,796,250
------------- -------------
MEDICAL SUPPLIES-0.87%
167,000 Steris Corp. (a)............................. 5,690,284 5,344,000
------------- -------------
MEDICAL TECHNOLOGY-1.14%
140,700 Genzyme Corp. (General
Division) (a).............................. 9,001,518 7,070,175
------------- -------------
MISCELLANEOUS-2.15%
373,700 CUC International, Inc. (a).................. 8,047,950 13,266,350
------------- -------------
OFFICE EQUIPMENT AND SUPPLIES-2.26%
181,100 Sterling Software, Inc. (a).................. 4,434,718 13,944,700
------------- -------------
OIL-CANADIAN-0.93%
275,000 MedPartners/Mullikin, Inc. (a)............... 7,727,455 5,740,625
------------- -------------
PUBLISHING-0.55%
54,700 Scholastic Corp. (a)......................... 2,787,578 3,391,400
------------- -------------
RESTAURANTS AND FRANCHISING-3.53%
155,000 Boston Chicken, Inc. (a)..................... 5,389,612 5,037,500
274,400 Lone Star Steakhouse & Saloon, Inc. (a)...... 5,048,875 10,358,600
185,300 Outback Steakhouse, Inc. (a)................. 3,827,337 6,389,955
------------- -------------
14,265,824 21,786,055
------------- -------------
RETAIL-DEPARTMENT STORES-1.39%
85,400 Kohl's Corp. (a)............................. 1,372,378 3,127,775
214,800 Wal-Mart Stores, Inc......................... 4,432,621 5,450,550
------------- -------------
5,804,999 8,578,325
------------- -------------
RETAIL-MISCELLANEOUS-9.29%
196,000 AutoZone, Inc. (a)........................... 4,253,372 6,811,000
116,500 Barnes & Noble, Inc. (a)..................... 2,987,298 4,179,437
266,400 General Nutrition
Companies, Inc. (a)........................ 5,880,112 4,662,000
177,200 Home Depot, Inc.............................. 6,435,766 9,568,800
174,375 Office Depot, Inc. (a)....................... 2,250,275 3,552,891
160,000 Pep Boys Manny-Moe & Jack.................... 3,807,193 5,440,000
388,125 Staples, Inc. (a)............................ 4,725,946 7,568,438
350,000 Starbucks Corp. (a).......................... 5,921,387 9,887,500
234,500 Sunglass Hut International, Inc. (a)......... 6,292,312 5,715,938
------------- -------------
42,553,661 57,386,004
------------- -------------
TELECOMMUNICATIONS-13.28%
422,800 3Com Corp. (a)............................... 2,950,166 19,343,100
443,400 Cisco Systems, Inc. (a)...................... 3,491,857 25,107,525
237,000 MFS Communications Co., Inc. (a)............. 6,482,894 8,917,125
100,000 Motorola, Inc................................ 5,469,000 6,287,500
333,900 Tellabs, Inc.(a)............................. 4,259,869 22,329,562
------------- -------------
22,653,786 81,984,812
------------- -------------
TELEPHONE SERVICES-3.87%
246,000 Paging Network, Inc. (a)..................... 3,720,750 5,904,000
325,000 WorldCom, Inc. (a)........................... 7,378,215 17,996,875
------------- -------------
11,098,965 23,900,875
------------- -------------
TOTAL COMMON STOCKS.......................... $ 325,410,133 $ 533,416,577
------------- -------------
------------- -------------
</TABLE>
57
<PAGE>
FORTIS SERIES FUND, INC.
GROWTH STOCK SERIES (CONTINUED)
Schedule of Investments
June 30, 1996 (Unaudited)
SHORT-TERM INVESTMENTS-13.54%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
------------ -------------
<C> <S> <C>
BANKS-3.22%
$19,884,595 First Trust Money Market Variable Rate Time
Deposit, Current rate -- 5.13%............. $ 19,884,595
-------------
DIVERSIFIED FINANCE-1.68%
10,380,000 Associate Corp. Master Variable Rate Note,
Current Rate -- 5.36%...................... 10,380,000
-------------
U.S. GOVERNMENT AGENCY-6.15%
9,100,000 Federal Home Loan Mortgage Corp., 5.30%,
7-15-1996.................................. 9,080,321
9,800,000 Federal Home Loan Mortgage Corp., 5.37%,
7-22-1996.................................. 9,768,439
15,000,000 Federal Home Loan Mortgage Corp., 5.40%,
8-12-1996.................................. 14,905,221
4,270,000 Federal Home Loan Mortgage Corp., 5.41%,
8-12-1996.................................. 4,243,019
-------------
37,997,000
-------------
U.S. OTHER DIRECT FEDERAL OBLIGATIONS-2.49%
15,400,000 Federal Home Loan Bank, 5.34%, 7-8-1996...... 15,382,067
-------------
TOTAL SHORT-TERM INVESTMENTS................. $ 83,643,662
-------------
-------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$409,053,795)(B)........................... $ 617,060,239
-------------
-------------
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 1996, the cost of securities for federal income tax purposes
was $409,053,795 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation........................... $219,707,166
Unrealized depreciation........................... (11,700,722)
---------------------------------------------------------------
Net unrealized appreciation....................... $208,006,444
---------------------------------------------------------------
</TABLE>
(c) See Note 1 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 1.42% of net assets as of June 30, 1996
58
<PAGE>
FORTIS SERIES FUND, INC.
INTERNATIONAL STOCK SERIES
Schedule of Investments
June 30,1996 (Unaudited)
COMMON STOCKS-89.07%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (a) Value (b)
--------- ------------ ------------
<C> <S> <C> <C>
AUSTRALIA-2.40%
47,200 Coles Myer Ltd. -- RETAIL-MISCELLANEOUS...... $ 173,391 $ 171,628
170,900 Westpac Banking Corp. Ltd. -- BANKS.......... 698,129 757,277
------------ ------------
871,520 928,905
------------ ------------
DENMARK-1.17%
9,800 Uni-Danmark A/S "A" -- BANKS................. 443,809 454,470
------------ ------------
FINLAND-1.38%
25,900 UPM -- KYMMENE CORP. -- PAPER................ 520,764 535,739
------------ ------------
FRANCE-13.04%
2,630 Accor S.A. -- HOTEL AND MOTEL................ 333,228 367,826
11,910 Alcatel Alsthom CIE Generale D'Electricite
S.A. -- TELECOMMUNICATIONS................. 1,098,226 1,038,752
12,600 Banque Nationale de Paris -- BANKS........... 523,219 442,265
5,400 CIE Generale Des
Eaux -- TELECOMMUNICATIONS................. 566,134 603,136
5,200 Compagnie De Saint-Gobain -- BUILDING
MATERIALS.................................. 659,430 695,948
5,900 Elf Aquitaine -- OIL-CRUDE PETROLEUM AND
GAS........................................ 441,564 433,897
27,400 Rhone Poulenc -- BUILDING MATERIALS.......... 694,269 720,116
2,800 Roussel UCLAF ADR (c) -- DRUGS............... 254,198 335,853
5,605 Total S.A. Co Francaise Petroles
"B" -- OIL-CRUDE PETROLEUM AND GAS......... 355,577 415,686
------------ ------------
4,925,845 5,053,479
------------ ------------
GERMANY-10.75%
1,310 Daimler -- BENZ AG -- AUTOMOBILE
MANUFACTURERS.............................. 718,618 702,705
11,700 Deutsche Bank AG -- BANKS.................... 546,712 554,200
26,800 Hoechst AG -- CHEMICALS...................... 714,400 904,990
2,210 Mannesmann AG -- MACHINERY................... 717,006 760,798
12,500 Siemens AG -- UTILITIES-ELECTRIC............. 650,914 669,945
10,800 Veba AG -- UTILITIES-ELECTRIC................ 462,681 574,008
------------ ------------
3,810,331 4,166,646
------------ ------------
HONG KONG-1.87%
47,956 HSBC Holdings plc -- BANKS................... 690,742 724,869
------------ ------------
JAPAN-26.35%
18,000 Dai Nippon Printing Co. Ltd. -- PRINTING..... 309,459 347,916
80 DDI Corp. -- TELECOMMUNICATIONS.............. 632,537 697,292
28,000 Honda Motor -- AUTOMOBILE MANUFACTURERS...... 637,512 725,008
40,000 Matsushita Electric Industrial
Co. -- ELECTRIC PRODUCTS................... 673,616 743,972
81,000 Mitsubishi Heavy Industries
Ltd. -- AUTOMOBILE MANUFACTURERS........... 608,014 703,792
19,000 Mitsui Marine & Fire Ins. -- INSURANCE....... 149,620 150,882
5,500 Nintendo -- TOYS............................. 369,540 409,185
165,000 NKK Corp. -- STEEL AND IRON.................. 507,149 499,446
18,000 Omron Corp. -- ELECTRONIC-CONTROLS AND
EQUIPMENT.................................. 377,193 382,380
13,000 Orix Corp. -- LEASING........................ 490,646 481,212
5,200 Promise Co. Ltd. -- FINANCE COMPANIES........ 237,503 256,014
70,000 Ricoh Corp. Ltd. -- OFFICE EQUIPMENT AND
SUPPLIES................................... 768,951 740,325
12,000 Rohm Co. -- ELECTRIC PRODUCTS................ 631,881 792,112
45,000 Sekisui Chemical Co. -- CHEMICALS............ 565,493 549,774
17,100 Sony Corp. -- ELECTRONIC-CONTROLS AND
EQUIPMENT.................................. 987,570 1,124,082
52,000 Sumitomo Trust & Bank -- BANKS............... 704,112 711,150
36,000 Toyota Motor -- AUTOMOBILE MANUFACTURERS..... 774,933 899,331
------------ ------------
9,425,729 10,213,873
------------ ------------
NETHERLANDS-5.77%
4,000 Heineken NV -- BEVERAGE...................... 672,359 893,744
18,700 ING Groep NV -- FINANCE COMPANIES............ 493,738 557,612
5,100 Royal Dutch Petroleum Co. NY Reg.
Shares -- OIL-CRUDE PETROLEUM AND GAS...... 656,154 784,125
------------ ------------
1,822,251 2,235,481
------------ ------------
</TABLE>
59
<PAGE>
FORTIS SERIES FUND, INC.
INTERNATIONAL STOCK SERIES (CONTINUED)
Schedule of Investments
June 30,1996 (Unaudited)
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (a) Value (b)
--------- ------------ ------------
<C> <S> <C> <C>
NEW ZEALAND-0.55%
82,300 Lion Nathan Ltd. -- BUILDING MATERIALS....... $ 179,187 $ 214,812
------------ ------------
SPAIN-2.09%
13,000 Empresa Nacional de Electricidad -- ELECTRIC
PRODUCTS................................... 746,934 810,149
------------ ------------
SWEDEN-2.83%
8,800 Astra AB ""B" -- DRUGS....................... 330,380 383,273
6,600 Electrolux AB ""B" Free -- HOUSEHOLD
PRODUCTS................................... 313,767 331,717
1,720 Nackebro Fastighets AB -- BANKS.............. 18,432 21,255
17,200 Svenska Handelsbanken -- BANKS............... 311,422 359,010
------------ ------------
974,001 1,095,255
------------ ------------
SWITZERLAND-6.18%
190 Baloise Holdings Ltd. -- INSURANCE........... 393,922 412,898
610 Ciba-Geigy AG -- DRUGS....................... 515,561 743,224
680 Nestle S.A. Registered -- FOOD-GROCERY,
MISCELLANEOUS.............................. 716,695 776,357
194 SGS Societe Generale de Surveillance Holding
S.A. -- BANKS.............................. 355,974 464,215
------------ ------------
1,982,152 2,396,694
------------ ------------
UNITED KINGDOM-14.69%
65,400 Allied Domecq plc -- RETAIL-DEPARTMENT
STORES..................................... 515,441 459,316
52,283 British Aerospace plc -- AEROSPACE AND
EQUIPMENT.................................. 534,246 793,689
82,809 Cadbury Schweppes plc -- STEEL AND IRON...... 652,892 654,924
56,900 General Electric Co. plc -- ELECTRIC
PRODUCTS................................... 327,792 306,345
43,600 Lloyds Abbey Life plc -- INSURANCE........... 297,963 346,181
70,800 Mirror Group plc -- PUBLISHING............... 197,767 225,519
43,800 National Power plc -- UTILITIES-ELECTRIC..... 337,497 353,894
43,600 National Power plc -- UTILITIES-ELECTRIC..... 221,459 261,499
53,000 Rank Organisation plc -- LEISURE
TIME-AMUSEMENTS............................ 356,745 410,110
53,000 Redland plc -- BUILDING MATERIALS............ 339,154 330,229
304,600 Sears -- RETAIL-DEPARTMENT STORES............ 494,470 468,555
15,900 Thorn Emi plc -- MISCELLANEOUS............... 369,294 443,216
32,200 Unilever plc -- CONSUMER GOODS............... 636,952 640,415
------------ ------------
5,281,672 5,693,892
------------ ------------
TOTAL COMMON STOCKS.......................... $31,674,937 $34,524,264
------------ ------------
------------ ------------
</TABLE>
PREFERRED STOCKS-2.80%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (a) Value (b)
--------- ----------- ------------
<C> <S> <C> <C>
AUSTRALIA-1.59%
30,600 News Corp. Ltd.(The) Preferred
ADR -- BROADCASTING........................ $ 577,252 $ 615,825
----------- ------------
ITALY-1.22%
268,500 Fiat SpA -- AUTOMOBILE MANUFACTURERS......... 583,488 471,160
----------- ------------
TOTAL PREFERRED STOCKS....................... $1,160,740 $ 1,086,985
----------- ------------
----------- ------------
</TABLE>
U.S. GOVERNMENT SECURITIES-3.94%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Cost (a) Value (b)
----------- --------------- ------------
<C> <S> <C> <C>
U.S. TREASURY SECURITIES-3.94%
NOTES:
$1,525,000 6.25% 1996................................... $ 1,526,970 $ 1,526,906
--------------- ------------
TOTAL LONG-TERM INVESTMENTS.................. $ 34,362,647 $37,138,155
--------------- ------------
</TABLE>
60
<PAGE>
SHORT-TERM INVESTMENTS-4.75%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (b)
--------- ------------
<C> <S> <C>
BANKS-1.68%
$650,858 First Trust Money Market Variable Rate Time
Deposit, Current rate -- 5.13%............. $ 650,858
------------
U.S. GOVERNMENT AGENCY-0.68%
175,000 Federal National Mortgage Association, 5.32%
7-2-1996................................... 174,949
90,000 Federal National Mortgage Association, 5.35%
7-16-1996.................................. 89,790
------------
264,739
------------
U.S. TREASURY BILLS-2.38%
925,000 US Treasury Bill, 5.17% 7-5-1996............. 924,397
------------
TOTAL SHORT-TERM INVESTMENTS................. 1,839,994
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$36,202,641) (A)........................... $38,978,149
------------
------------
</TABLE>
(a) At June 30, 1996, the cost of securities for federal income tax purposes
was $36,202,641 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation........................... $ 3,227,563
Unrealized depreciation........................... (452,055)
---------------------------------------------------------------
Net unrealized appreciation....................... $ 2,775,508
---------------------------------------------------------------
</TABLE>
(b) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(c) Common and Preferred Stock sold within the terms of private placement
memorandums, 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 portfolio entered into the
following Section 144A security transactions: On May 23, 1995, December 27,
1995, January 25, 1996 and April 17, 1996 the portfolio acquired 500, 700,
800 and 800 shares of Roussel UCLAF ADR with a cost basis of $34,745,
$59,325, $70,328 and $89,800, respectively. The value of these securities
at June 30, 1996, is $335,853 which represents 0.87% of net assets.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets.
61
<PAGE>
FORTIS SERIES FUND, INC.
AGGRESSIVE GROWTH SERIES
Schedule of Investments
June 30, 1996 (Unaudited)
COMMON STOCKS-81.09%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
ADVERTISING-PUBLIC RELATIONS-0.10%
2,500 CKS Group, Inc. (a).......................... $ 42,500 $ 80,625
------------ ------------
APPAREL-1.17%
3,100 Mossimo, Inc. (a)............................ 55,800 123,612
27,000 Quicksilver, Inc. (a)........................ 1,023,907 810,000
------------ ------------
1,079,707 933,612
------------ ------------
BEVERAGE-0.66%
21,800 Boston Beer Co., Inc. (The) (a).............. 488,002 523,200
------------ ------------
BIOMEDICS, GENETICS RESEARCH AND DEVELOPMENT-0.80%
17,000 Biochem Pharma, Inc. (a)..................... 797,475 637,500
------------ ------------
BROADCASTING-0.97%
17,800 America Online, Inc. (a)..................... 286,512 778,750
------------ ------------
BUSINESS SERVICES AND SUPPLIES-9.98%
21,800 AccuStaff, Inc. (a).......................... 601,080 594,050
31,600 Acxiom Corp. (a)............................. 595,637 1,078,350
64,000 APAC TeleServices, Inc. (a).................. 584,508 2,304,000
45,000 Apollo Group, Inc. (a)....................... 872,434 1,260,000
4,000 Career Horizons, Inc. (a).................... 95,000 140,000
3,600 Catalina Marketing Corp. (a)................. 200,394 329,400
25,200 Indus Group, Inc. (a)........................ 497,877 510,300
58,000 National Education Corp. (a)................. 985,260 826,500
36,500 Romac International, Inc. (a)................ 941,325 930,750
------------ ------------
5,373,515 7,973,350
------------ ------------
COMPUTER-HARDWARE-1.12%
15,800 Cisco Systems, Inc. (a)...................... 252,187 894,675
------------ ------------
COMPUTER-SOFTWARE-20.40%
16,200 Ascend Communications, Inc. (a).............. 891,556 911,250
14,000 Aspen Technology, Inc. (a)................... 715,546 770,000
21,000 Cascade Communications Corp. (a)............. 771,601 1,428,000
2,400 Citrix Systems, Inc. (a)..................... 18,000 91,200
3,100 Cybercash, Inc. (a).......................... 52,700 169,725
19,100 FTP Software, Inc. (a)....................... 575,250 157,575
28,000 HNC Software, Inc. (a)....................... 926,744 1,295,000
20,000 Idexx Laboratories, Inc. (a)................. 784,375 785,000
48,600 Informix Corp. (a)........................... 735,304 1,093,500
37,500 Input/Output, Inc. (a)....................... 492,617 1,214,062
24,000 Legato Systems, Inc. (a)..................... 768,375 1,320,000
20,000 Lernout and Hauspie Speech Products (a)...... 761,669 450,000
22,000 Macromedia, Inc. (a)......................... 478,764 481,250
8,000 Mecon, Inc. (a).............................. 182,812 181,000
14,000 Medic Computer Systems, Inc. (a)............. 745,573 1,135,750
3,000 Netscape Communications Corp. (a)............ 202,125 186,750
44,000 Network General Corp. (a).................... 817,067 946,000
19,600 Parametric Technology Corp. (a).............. 324,960 850,150
19,000 Scopus Technology, Inc. (a).................. 378,029 294,500
9,000 Shiva Corp. (a).............................. 332,437 720,000
7,500 Sterling Commerce, Inc. (a).................. 180,000 278,438
24,000 Synopsys, Inc. (a)........................... 661,712 954,000
12,500 Xylan Corp. (a).............................. 743,750 581,250
------------ ------------
12,540,966 16,294,400
------------ ------------
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
CONSTRUCTION-1.38%
25,300 Fastenal Co.................................. $ 806,450 $ 1,100,550
------------ ------------
CONSUMER GOODS-0.87%
43,000 Seattle Film Works, Inc. (a)................. 688,000 698,750
------------ ------------
DRUGS-0.60%
10,000 Parexel International Corp. (a).............. 337,500 482,500
------------ ------------
ELECTRONIC-COMMUNICATION SECURITY-0.70%
12,500 ADC Telecommunications, Inc. (a)............. 403,225 562,500
------------ ------------
ELECTRONIC-CONTROLS AND EQUIPMENT-1.69%
24,000 StrataCom, Inc. (a).......................... 398,625 1,350,000
------------ ------------
ELECTRONIC-SEMICONDUCTOR AND CAPACITOR-0.46%
18,800 Unitrode Corp. (a)........................... 351,681 364,250
------------ ------------
HEALTH CARE SERVICES-6.59%
14,950 ABR Information Services, Inc. (a)........... 704,686 751,238
50,000 American Oncology Resources, Inc. (a)........ 866,183 1,087,500
9,200 Healthsource, Inc. (a)....................... 184,644 161,000
30,700 Medaphis Corp. (a)........................... 1,187,900 1,220,325
46,000 Omnicare, Inc................................ 706,235 1,219,000
20,000 Pharmaceutical Products Development, Inc.
(a)........................................ 496,169 670,000
8,000 Summit Medical Systems, Inc. (a)............. 72,000 156,000
------------ ------------
4,217,817 5,265,063
------------ ------------
MACHINERY-OIL AND WELL-1.35%
38,000 Petroleum Geo-Services A/S ADR (a)........... 964,878 1,078,250
------------ ------------
MEDICAL SUPPLIES-0.47%
31,000 Isolyser Co., Inc. (a)....................... 483,500 372,000
------------ ------------
MEDICAL TECHNOLOGY-0.80%
22,300 Transition Systems, Inc. (a)................. 481,871 635,550
------------ ------------
OFFICE EQUIPMENT AND SUPPLIES-1.67%
24,000 Franklin Electronic Publishers, Inc. (a)..... 669,815 480,000
11,100 Sterling Software, Inc. (a).................. 376,469 854,700
------------ ------------
1,046,284 1,334,700
------------ ------------
OIL-CANADIAN-0.73%
28,000 MedPartners/Mullikin, Inc. (a)............... 668,842 584,500
------------ ------------
PUBLISHING-1.35%
36,000 Davidson and Associates, Inc. (a)............ 985,999 1,080,000
------------ ------------
RESTAURANTS AND FRANCHISING-3.67%
9,200 Applebees International, Inc................. 143,065 295,550
19,000 Boston Chicken, Inc. (a)..................... 664,449 617,500
27,000 Cheesecake Factory, Inc. (a)................. 737,170 742,500
23,000 Lone Star Steakhouse & Saloon, Inc. (a)...... 769,775 868,250
8,400 Papa John's International, Inc. (a).......... 153,850 409,500
------------ ------------
2,468,309 2,933,300
------------ ------------
RETAIL-MISCELLANEOUS-7.29%
24,000 Bed, Bath & Beyond, Inc. (a)................. 347,675 642,000
34,500 Corporate Express, Inc. (a).................. 674,375 1,380,000
7,700 Gymboree Corp. (a)........................... 202,988 234,850
13,800 PETsMART, Inc. (a)........................... 310,538 658,950
41,000 Sunglass Hut International, Inc. (a)......... 696,797 999,375
26,700 West Marine, Inc. (a)........................ 803,200 1,909,050
------------ ------------
3,035,573 5,824,225
------------ ------------
</TABLE>
62
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
RETAIL-SPECIALTY AND SPECIALTY MAIL ORDER-3.49%
47,100 Gadzooks, Inc. (a)........................... $ 600,633 $ 1,518,975
24,000 Just for Feet, Inc. (a)...................... 1,252,500 1,269,000
------------ ------------
1,853,133 2,787,975
------------ ------------
TELECOMMUNICATIONS-3.83%
38,600 MFS Communications Co., Inc. (a)............. 779,723 1,452,325
13,400 Tellabs, Inc.(a)............................. 311,000 896,125
18,100 Westell Technologies, Inc. (a)............... 652,350 710,425
------------ ------------
1,743,073 3,058,875
------------ ------------
TELEPHONE SERVICES-3.15%
32,250 Brooks Fiber Properties, Inc. (a)............ 934,159 1,064,250
45,000 Intermedia Communications of Florida (a)..... 759,375 1,451,250
------------ ------------
1,693,534 2,515,500
------------ ------------
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
UTILITIES-TELEPHONE-3.97%
17,200 IntelCom Group, Inc. (a)..................... $ 241,782 $ 430,000
49,200 LCI International, Inc. (a).................. 739,740 1,543,650
50,000 McLeod, Inc. (a)............................. 1,190,951 1,200,000
------------ ------------
2,172,473 3,173,650
------------ ------------
WASTE DISPOSAL-1.83%
45,400 United Waste System, Inc. (a)................ 698,075 1,464,150
------------ ------------
TOTAL COMMON STOCKS.......................... $ 46,359,706 $ 64,782,400
------------ ------------
------------ ------------
</TABLE>
SHORT-TERM INVESTMENTS-19.89%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
----------- ------------
<C> <S> <C>
BANKS-1.09%
$ 875,000 First Trust Money Market Variable Rate Time
Deposit, Current rate -- 5.13%............. $ 875,000
------------
DIVERSIFIED FINANCE-3.71%
2,963,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.36%...................... 2,963,000
------------
U.S. GOVERNMENT AGENCY-7.34%
2,000,000 Federal Home Loan Mortgage Corp., 5.37%,
7-31-1996.................................. 1,990,941
3,900,000 Federal Home Loan Mortgage Corp., 5.40%,
8-12-1996.................................. 3,875,357
------------
5,866,298
------------
U.S. OTHER DIRECT FEDERAL OBLIGATIONS-7.75%
6,200,000 Federal Home Loan Bank, 5.36%, 7-12-1996..... 6,189,109
------------
TOTAL SHORT-TERM INVESTMENTS................. 15,893,407
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$62,253,113) (B)........................... $80,675,807
------------
------------
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 1996, the cost of securities for federal income tax purposes
was $62,253,113 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation........................... $20,703,815
Unrealized depreciation........................... (2,281,121)
---------------------------------------------------------------
Net unrealized appreciation....................... $18,422,694
---------------------------------------------------------------
</TABLE>
(c) See Note 1 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 1.35% of net assets as of June 30, 1996
63
<PAGE>
FORTIS SERIES FUND, INC.
Statements of Assets and Liabilities
(Unaudited)
June 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY U.S. GOV'T. DIVERSIFIED GLOBAL HIGH ASSET
MARKET SECURITIES INCOME BOND YIELD ALLOCATION
SERIES SERIES SERIES SERIES SERIES SERIES
----------- ------------ ------------ ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments in securities,
as detailed in the
accompanying schedules, at
market* (Note 1).......... $53,202,351 $166,890,565 $108,905,641 $16,733,932 $34,265,748 $369,057,783
Cash on deposit with
custodian................. 735 27,526 12,252 -- 42,197 70,987
Foreign currency on deposit
with custodian............ -- -- -- -- -- --
Collateral for securities
lending transactions (Note
1)........................ -- -- -- -- -- --
Receivables:
Unrealized appreciation on
forward foreign currency
contracts-net (Notes 1 and
3)........................ -- -- -- -- -- --
Investment securities
sold...................... -- 72 854,114 -- 538,000 6,652,871
Interest and dividends...... 39,181 1,834,330 1,301,598 435,389 580,300 2,821,699
Subscriptions of capital
stock..................... -- -- 4,240 19,165 5,766 4,526
Prepaid expenses............ 9,166 13,587 11,708 14,286 9,975 16,801
----------- ------------ ------------ ----------- ----------- ------------
TOTAL ASSETS.................. 53,251,433 168,766,080 111,089,553 17,202,772 35,441,986 378,624,667
----------- ------------ ------------ ----------- ----------- ------------
LIABILITIES:
Unrealized depreciation on
forward foreign currency
contracts-net (Notes 1 and
3)........................ -- -- -- 24,923 -- --
Payable upon return of
securities loaned (Note
1)........................ -- -- -- -- -- --
Payable for investment
securities purchased...... -- 1,344,952 6,035,823 -- 2,422,637 7,907,695
Redemptions of capital
stock..................... 543,716 70,531 42,852 -- 33,439 18,253
Payable for investment
advisory and management
fees (Note 2)............. 13,099 63,414 40,618 10,356 13,303 147,156
Accounts payable and accrued
expenses.................. 8,604 14,306 13,597 17,527 35,782 23,364
----------- ------------ ------------ ----------- ----------- ------------
TOTAL LIABILITIES............. 565,419 1,493,203 6,132,890 52,806 2,505,161 8,096,468
----------- ------------ ------------ ----------- ----------- ------------
NET ASSETS:
Net proceeds of capital
stock, par value $.01 per
share-authorized
20,000,000,000
shares;**................. 49,344,394 171,825,545 103,680,858 16,848,054 32,456,965 305,310,884
Unrealized appreciation
(depreciation) of
investments in securities
and other assets and
liabilities denominated in
foreign currency.......... 112,678 (634,564) (992,314) (332,318 ) 155,031 58,068,507
Undistributed net investment
income.................... 3,350,018 17,493,217 12,011,372 458,175 1,614,289 7,093,382
Accumulated net realized
gain (loss) from sale of
investments and foreign
currency.................. (121,076 ) (21,411,321) (9,743,253) 176,055 (1,289,460 ) 55,426
----------- ------------ ------------ ----------- ----------- ------------
TOTAL NET ASSETS.............. $52,686,014 $167,272,877 $104,956,663 $17,149,966 $32,936,825 $370,528,199
----------- ------------ ------------ ----------- ----------- ------------
NET ASSET VALUE PER SHARE..... $11.10 $10.91 $12.06 $10.99 $10.18 $16.63
----------- ------------ ------------ ----------- ----------- ------------
*Cost......................... $53,089,673 $167,525,129 $109,897,955 $17,037,903 $34,110,717 $310,989,276
**Outstanding shares.......... 4,746,672 15,330,283 8,702,513 1,560,629 3,236,281 22,283,025
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
64
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL
ASSET GROWTH & S & P BLUE CHIP GLOBAL GROWTH
ALLOCATION VALUE INCOME 500 INDEX STOCK GROWTH STOCK
SERIES SERIES SERIES SERIES SERIES SERIES SERIES
----------- ---------- ----------- ---------- ---------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments in securities, as
detailed in the accompanying
schedules, at market* (Note
1).......................... $28,756,883 $3,680,515 $95,749,840 $7,840,221 $7,019,627 $287,643,949 $617,060,239
Cash on deposit with
custodian................... -- 14,327 18,261 58 -- 853 475
Foreign currency on deposit
with custodian.............. 214,711 -- -- -- -- 145,006 --
Collateral for securities
lending transactions (Note
1).......................... -- -- -- -- -- 72,455,600 --
Receivables:
Unrealized appreciation on
forward foreign currency
contracts-net (Notes 1 and
3).......................... 7,132 -- -- -- -- -- --
Investment securities sold.... -- 25,886 -- -- -- -- --
Interest and dividends........ 331,687 5,216 166,282 10,826 7,224 432,429 180,769
Subscriptions of capital
stock....................... 151,251 103,116 269,498 90,430 53,576 522,145 633,021
Prepaid expenses.............. 12,141 416 14,659 842 945 24,563 28,190
----------- ---------- ----------- ---------- ---------- ------------ ------------
TOTAL ASSETS.................. 29,473,805 3,829,476 96,218,540 7,942,377 7,081,372 361,224,545 617,902,694
----------- ---------- ----------- ---------- ---------- ------------ ------------
LIABILITIES:
Unrealized depreciation on
forward foreign currency
contracts-net (Notes 1 and
3)........................ -- -- -- -- -- -- --
Payable upon return of
securities loaned (Note
1)........................ -- -- -- -- -- 72,455,600 --
Payable for investment
securities purchased...... 66,160 227,198 -- 104,484 338,748 4,180,948 --
Redemptions of capital
stock..................... -- -- -- -- -- -- --
Payable for investment
advisory and management
fees (Note 2)............. 20,992 38 53,200 2,421 4,548 161,436 311,424
Accounts payable and accrued
expenses.................. 8,641 3,631 2,204 1,887 1,922 51,647 29,699
----------- ---------- ----------- ---------- ---------- ------------ ------------
TOTAL LIABILITIES............. 95,793 230,867 55,404 108,792 345,218 76,849,631 341,123
----------- ---------- ----------- ---------- ---------- ------------ ------------
NET ASSETS:
Net proceeds of capital
stock, par value $.01 per
share-authorized
20,000,000,000
shares;**................. 26,666,582 3,539,308 80,982,785 7,621,428 6,621,088 196,747,054 409,758,725
Unrealized appreciation
(depreciation) of
investments in securities
and other assets and
liabilities denominated in
foreign currency.......... 1,867,300 53,626 13,673,366 183,436 86,783 101,840,095 208,006,444
Undistributed net investment
income.................... 492,911 6,975 959,777 27,761 15,039 663,547 1,769,240
Accumulated net realized
gain (loss) from sale of
investments and foreign
currency.................. 351,219 (1,300 ) 547,208 960 13,244 (14,875,782) (1,972,838)
----------- ---------- ----------- ---------- ---------- ------------ ------------
TOTAL NET ASSETS.............. $29,378,012 $3,598,609 $96,163,136 $7,833,585 $6,736,154 $284,374,914 $617,561,571
----------- ---------- ----------- ---------- ---------- ------------ ------------
NET ASSET VALUE PER SHARE..... $12.17 $10.42 $14.03 $10.37 $10.21 $18.98 $31.24
----------- ---------- ----------- ---------- ---------- ------------ ------------
*Cost......................... $26,894,141 $3,626,889 $82,076,474 $7,656,785 $6,932,844 $185,803,370 $409,053,795
**Outstanding shares.......... 2,413,548 345,271 6,852,391 755,222 659,738 14,985,274 19,765,630
<CAPTION>
INTERNATIONAL AGGRESSIVE
STOCK GROWTH
SERIES SERIES
----------- -----------
<S> <C> <C>
ASSETS:
Investments in securities, as
detailed in the accompanying
schedules, at market* (Note
1).......................... $38,978,149 $80,675,807
Cash on deposit with
custodian................... -- 991
Foreign currency on deposit
with custodian.............. -- --
Collateral for securities
lending transactions (Note
1).......................... -- --
Receivables:
Unrealized appreciation on
forward foreign currency
contracts-net (Notes 1 and
3).......................... -- --
Investment securities sold.... -- 50,723
Interest and dividends........ 448,346 24,536
Subscriptions of capital
stock....................... 159,338 215,737
Prepaid expenses.............. 3,327 12,768
----------- -----------
TOTAL ASSETS.................. 39,589,160 80,980,562
----------- -----------
LIABILITIES:
Unrealized depreciation on
forward foreign currency
contracts-net (Notes 1 and
3)........................ 2,440 --
Payable upon return of
securities loaned (Note
1)........................ -- --
Payable for investment
securities purchased...... 790,180 1,039,232
Redemptions of capital
stock..................... -- --
Payable for investment
advisory and management
fees (Note 2)............. 25,546 45,405
Accounts payable and accrued
expenses.................. 9,272 2,336
----------- -----------
TOTAL LIABILITIES............. 827,438 1,086,973
----------- -----------
NET ASSETS:
Net proceeds of capital
stock, par value $.01 per
share-authorized
20,000,000,000
shares;**................. 34,901,688 64,419,542
Unrealized appreciation
(depreciation) of
investments in securities
and other assets and
liabilities denominated in
foreign currency.......... 2,780,040 18,422,694
Undistributed net investment
income.................... 538,882 91,252
Accumulated net realized
gain (loss) from sale of
investments and foreign
currency.................. 541,112 (3,039,899 )
----------- -----------
TOTAL NET ASSETS.............. $38,761,722 $79,893,589
----------- -----------
NET ASSET VALUE PER SHARE..... $12.18 $14.64
----------- -----------
*Cost......................... $36,202,641 $62,253,113
**Outstanding shares.......... 3,182,621 5,456,237
</TABLE>
65
<PAGE>
FORTIS SERIES FUND, INC.
Statements of Operations
(Unaudited)
For the Six-Month Period Ended June 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY U.S. GOV'T. DIVERSIFIED GLOBAL HIGH ASSET
MARKET SECURITIES INCOME BOND YIELD ALLOCATION
SERIES SERIES SERIES SERIES SERIES SERIES
---------- ----------- ----------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME:
Income:
Interest income........... $1,218,800 $6,099,034 $4,090,243 $ 472,063 $1,677,377 $7,605,583
Dividend Income........... -- -- -- -- -- 311,071
Fee income (Note 1)....... -- -- -- -- -- --
---------- ----------- ----------- ---------- ---------- -----------
Total Income *.............. 1,218,800 6,099,034 4,090,243 472,063 1,677,377 7,916,654
---------- ----------- ----------- ---------- ---------- -----------
Expenses:
Investment advisory and
management fees (Note
2)...................... 71,213 403,560 252,268 57,412 77,215 867,180
Legal and auditing fees
(Note 2)................ 6,029 12,432 8,480 10,137 6,116 16,424
Custodian fees............ 7,155 12,929 12,432 9,945 5,962 22,377
Shareholders' notices and
reports................. 5,569 22,874 13,426 2,662 2,279 38,426
Directors' fees and
expenses................ 806 3,580 2,138 398 448 6,092
Other..................... 947 4,162 3,090 621 1,121 7,957
---------- ----------- ----------- ---------- ---------- -----------
Total Expenses.............. 91,719 459,537 291,834 81,175 93,141 958,456
---------- ----------- ----------- ---------- ---------- -----------
NET INVESTMENT INCOME......... 1,127,081 5,639,497 3,798,409 390,888 1,584,236 6,958,198
---------- ----------- ----------- ---------- ---------- -----------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY (NOTE 1):
Net realized gain (loss)
from:
Investments............... -- (1,114,773 ) (916,749 ) 57,984 35,013 6,932,317
Foreign currency
transactions............ -- -- -- 69,855 -- --
---------- ----------- ----------- ---------- ---------- -----------
NET REALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN
CURRENCY TRANSACATIONS...... -- (1,114,773 ) (916,749 ) 127,839 35,013 6,932,317
---------- ----------- ----------- ---------- ---------- -----------
Net change in unrealized
appreciation (depreciation)
of:
Investments................. 63,292 (8,677,799 ) (4,126,091 ) (545,391 ) (303,473 ) 2,196,708
Translation of assets and
liabilities denominated in
foreign currency.......... -- -- -- (370,957 ) -- --
---------- ----------- ----------- ---------- ---------- -----------
NET CHANGE IN UNREALIZED
APPRECIATION (DEPRECIATION)
ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACATIONS...... 63,292 (8,677,799 ) (4,126,091 ) (916,348 ) (303,473 ) 2,196,708
---------- ----------- ----------- ---------- ---------- -----------
NET GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY.......... 63,292 (9,792,572 ) (5,042,840 ) (788,509 ) (268,460 ) 9,129,025
---------- ----------- ----------- ---------- ---------- -----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS.................. $1,190,373 $(4,153,075) $(1,244,431) $(397,621 ) $1,315,776 $16,087,223
---------- ----------- ----------- ---------- ---------- -----------
</TABLE>
<TABLE>
<CAPTION>
*Net of foreign witholding taxes of:
<S> <C>
Global Bond Series $20,754
Asset Allocation Series 10,252
Global Asset Allocation Series 31,676
Blue Chip Stock Series 241
Global Growth Series 195,637
International Stock Series 79,051
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
66
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL S & P BLUE
ASSET GROWTH & 500 CHIP GLOBAL GROWTH INTERNATIONAL
ALLOCATION VALUE INCOME INDEX STOCK GROWTH STOCK STOCK
SERIES SERIES** SERIES SERIES** SERIES** SERIES SERIES SERIES
---------- ------- ---------- -------- -------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME:
Income:
Interest income............. $ 401,294 $4,726 $ 328,485 $ 3,504 $12,674 $ 472,994 $3,239,289 $ 81,745
Dividend Income............. 166,418 7,678 897,744 32,453 16,785 1,073,279 404,838 619,067
Fee income (Note 1)......... -- -- -- -- -- 34,748 -- --
---------- ------- ---------- -------- -------- ----------- ----------- ----------
Total Income *................ 567,712 12,404 1,226,229 35,957 29,459 1,581,021 3,644,127 700,812
---------- ------- ---------- -------- -------- ----------- ----------- ----------
Expenses:
Investment advisory and
management fees (Note
2)........................ 110,353 3,286 269,849 5,983 12,276 844,785 1,774,537 127,797
Legal and auditing fees
(Note 2).................. 10,205 1,344 6,315 1,413 1,345 11,338 19,565 17,853
Custodian fees.............. 16,126 662 7,150 662 662 50,224 32,322 25,143
Shareholders' notices and
reports................... 2,238 77 3,226 77 77 20,089 57,662 1,394
Directors' fees and
expenses.................. 447 45 913 45 45 3,145 9,199 292
Other....................... 779 15 1,270 16 15 4,218 10,332 806
---------- ------- ---------- -------- -------- ----------- ----------- ----------
Total Expenses................ 140,148 5,429 288,723 8,196 14,420 933,799 1,903,617 173,285
---------- ------- ---------- -------- -------- ----------- ----------- ----------
NET INVESTMENT INCOME......... 427,564 6,975 937,506 27,761 15,039 647,222 1,740,510 527,527
---------- ------- ---------- -------- -------- ----------- ----------- ----------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY (NOTE 1):
Net realized gain (loss)
from:
Investments............... 271,898 (1,300 ) 953,020 960 13,244 (1,094,646 ) 25,085,179 443,308
Foreign currency
transactions............ 64,657 -- -- -- -- (11,065 ) -- (1,545)
---------- ------- ---------- -------- -------- ----------- ----------- ----------
NET REALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN
CURRENCY TRANSACATIONS...... 336,555 (1,300 ) 953,020 960 13,244 (1,105,711 ) 25,085,179 441,763
---------- ------- ---------- -------- -------- ----------- ----------- ----------
Net change in unrealized
appreciation (depreciation)
of:
Investments................. 936,430 53,626 4,951,090 183,436 86,783 42,690,554 34,083,299 1,449,754
Translation of assets and
liabilities denominated in
foreign currency.......... (147,740 ) -- -- -- -- (1,096 ) -- 4,691
---------- ------- ---------- -------- -------- ----------- ----------- ----------
NET CHANGE IN UNREALIZED
APPRECIATION (DEPRECIATION)
ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACATIONS...... 788,690 53,626 4,951,090 183,436 86,783 42,689,458 34,083,299 1,454,445
---------- ------- ---------- -------- -------- ----------- ----------- ----------
NET GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY.......... 1,125,245 52,326 5,904,110 184,396 100,027 41,583,747 59,168,478 1,896,208
---------- ------- ---------- -------- -------- ----------- ----------- ----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS.................. $1,552,809 $59,301 $6,841,616 $212,157 $115,066 $42,230,969 $60,908,988 $2,423,735
---------- ------- ---------- -------- -------- ----------- ----------- ----------
<CAPTION>
AGGRESSIVE
GROWTH
SERIES
-----------
<S> <C>
NET INVESTMENT INCOME:
Income:
Interest income............. $ 322,544
Dividend Income............. 2,776
Fee income (Note 1)......... --
-----------
Total Income *................ 325,320
-----------
Expenses:
Investment advisory and
management fees (Note
2)........................ 217,220
Legal and auditing fees
(Note 2).................. 6,425
Custodian fees.............. 6,258
Shareholders' notices and
reports................... 2,606
Directors' fees and
expenses.................. 658
Other....................... 901
-----------
Total Expenses................ 234,068
-----------
NET INVESTMENT INCOME......... 91,252
-----------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY (NOTE 1):
Net realized gain (loss)
from:
Investments............... (1,591,808 )
Foreign currency
transactions............ --
-----------
NET REALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN
CURRENCY TRANSACATIONS...... (1,591,808 )
-----------
Net change in unrealized
appreciation (depreciation)
of:
Investments................. 10,077,912
Translation of assets and
liabilities denominated in
foreign currency.......... --
-----------
NET CHANGE IN UNREALIZED
APPRECIATION (DEPRECIATION)
ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACATIONS...... 10,077,912
-----------
NET GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY.......... 8,486,104
-----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS.................. $8,577,356
-----------
</TABLE>
<TABLE>
<S> <C>
Global Bond Series $20,754
Asset Allocation Series 10,252
Global Asset Allocation Series 31,676
Blue Chip Stock Series 241
Global Growth Series 195,637
International Stock Series 79,051
**For period March 28, 1996 (inception) to June 30,
1996.
</TABLE>
67
<PAGE>
FORTIS SERIES FUND, INC.
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
U.S. GOVERNMENT
MONEY MARKET SERIES SECURITIES SERIES
- --------------------------------------------------------------------------------------
FOR THE FOR THE
SIX-MONTH SIX-MONTH
PERIOD ENDED FOR THE PERIOD ENDED FOR THE
JUNE 30, YEAR ENDED JUNE 30, YEAR ENDED
1996 DECEMBER 31, 1996 DECEMBER 31,
(UNAUDITED) 1995 (UNAUDITED) 1995
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income....... $ 1,127,081 $ 2,222,930 $ 5,639,497 $11,811,430
Net realized gain (loss) on
investments and foreign
currency transactions..... -- -- (1,114,773 ) (173,955 )
Net change in unrealized
appreciation
(depreciation) of
investments and foreign
currency.................. 63,292 47,894 (8,677,799 ) 18,308,069
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS.................... 1,190,373 2,270,824 (4,153,075 ) 29,945,544
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment
income.................... -- (1,570,821 ) -- (8,675 )
From net realized gains on
investments............... -- -- -- --
Excess distributions of net
realized gains............ -- -- -- --
------------ ------------ ------------ ------------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS.................. -- (1,570,821 ) -- (8,675 )
------------ ------------ ------------ ------------
CAPITAL STOCK SOLD AND
REPURCHASED (NOTE 5):
Proceeds from sale of
shares.................... 28,854,441 36,255,680 4,178,581 10,572,854
Proceeds from shares issued
as a result of reinvested
dividends................. -- 1,570,821 -- 8,675
Less cost of repurchase..... (19,165,913 ) (41,522,126 ) (15,439,960 ) (30,487,565 )
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM SHARES
TRANSACTIONS.................. 9,688,528 (3,695,625 ) (11,261,379 ) (19,906,036 )
------------ ------------ ------------ ------------
TOTAL INCREASE (DECREASE) IN
NET ASSETS.................... 10,878,901 (2,995,622 ) (15,414,454 ) 10,030,833
NET ASSETS:
Beginning of period......... 41,807,113 44,832,735 182,687,331 172,656,498
------------ ------------ ------------ ------------
End of period (Note 4)...... $52,686,014 $41,807,113 $167,272,877 $182,687,331
------------ ------------ ------------ ------------
</TABLE>
<TABLE>
<CAPTION>
GLOBAL ASSET
ASSET ALLOCATION SERIES ALLOCATION SERIES
- -----------------------------------------------------------------------------------
FOR THE FOR THE
SIX-MONTH SIX-MONTH
PERIOD PERIOD
ENDED FOR THE ENDED FOR THE
JUNE 30, YEAR ENDED JUNE 30, YEAR ENDED
1996 DECEMBER 31, 1996 DECEMBER
(UNAUDITED) 1995 (UNAUDITED) 31, 1995
----------- ------------ ----------- -----------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income....... $6,958,198 $12,830,751 $ 427,564 $ 389,354
Net realized gain (loss) on
investments and foreign
currency transactions..... 6,932,317 1,295,064 336,555 235,189
Net change in unrealized
appreciation
(depreciation) of
investments and foreign
currency.................. 2,196,708 43,924,636 788,690 1,078,610
----------- ------------ ----------- -----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS.................... 16,087,223 58,050,451 1,552,809 1,703,153
----------- ------------ ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment
income.................... -- (12,700,612 ) -- (384,576 )
From net realized gains on
investments............... -- -- -- (159,956 )
Excess distributions of net
realized gains............ -- (287,248 ) -- --
----------- ------------ ----------- -----------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS.................. -- (12,987,860 ) -- (544,532 )
----------- ------------ ----------- -----------
CAPITAL STOCK SOLD AND
REPURCHASED (NOTE 5):
Proceeds from sale of
shares.................... 24,057,991 31,823,988 10,450,868 18,857,559
Proceeds from shares issued
as a result of reinvested
dividends................. -- 12,987,860 -- 544,532
Less cost of repurchase..... (11,128,321) (8,956,238 ) (2,705,835 ) (480,542 )
----------- ------------ ----------- -----------
NET INCREASE (DECREASE) IN NET
ASSETS FROM SHARES
TRANSACTIONS.................. 12,929,670 35,855,610 7,745,033 18,921,549
----------- ------------ ----------- -----------
TOTAL INCREASE (DECREASE) IN
NET ASSETS.................... 29,016,893 80,918,201 9,297,842 20,080,170
NET ASSETS:
Beginning of period......... 341,511,306 260,593,105 20,080,170 --
----------- ------------ ----------- -----------
End of period (Note 4)...... $370,528,199 $341,511,306 $29,378,012 $20,080,170
----------- ------------ ----------- -----------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
68
<PAGE>
<TABLE>
<CAPTION>
DIVERSIFIED INCOME SERIES GLOBAL BOND SERIES HIGH YIELD SERIES
- --------------------------------------------------------------------------------------------------------------
FOR THE FOR THE
FOR THE SIX-MONTH SIX-MONTH
SIX-MONTH PERIOD PERIOD
PERIOD ENDED FOR THE ENDED FOR THE ENDED FOR THE
JUNE 30, YEAR ENDED JUNE 30, YEAR ENDED JUNE 30, YEAR ENDED
1996 DECEMBER 31, 1996 DECEMBER 1996 DECEMBER
(UNAUDITED) 1995 (UNAUDITED) 31, 1995 (UNAUDITED) 31, 1995
------------ ------------ ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income....... $ 3,798,409 $ 7,976,729 $ 390,888 $ 485,845 $1,584,236 $2,384,126
Net realized gain (loss) on
investments and foreign
currency transactions..... (916,749 ) (1,398,057 ) 127,839 316,175 35,013 (1,238,691 )
Net change in unrealized
appreciation
(depreciation) of
investments and foreign
currency.................. (4,126,091 ) 9,667,974 (916,348 ) 584,030 (303,473 ) 1,145,719
------------ ------------ ----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS.................... (1,244,431 ) 16,246,646 (397,621 ) 1,386,050 1,315,776 2,291,154
------------ ------------ ----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment
income.................... -- (3,947 ) -- (485,845 ) -- (2,354,226 )
From net realized gains on
investments............... -- -- -- (200,672 ) -- (366 )
Excess distributions of net
realized gains............ -- -- -- -- -- (84,407 )
------------ ------------ ----------- ----------- ----------- -----------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS.................. -- (3,947 ) -- (686,517 ) -- (2,438,999 )
------------ ------------ ----------- ----------- ----------- -----------
CAPITAL STOCK SOLD AND
REPURCHASED (NOTE 5):
Proceeds from sale of
shares.................... 3,905,936 7,246,843 5,785,442 14,567,624 7,203,547 15,339,416
Proceeds from shares issued
as a result of reinvested
dividends................. -- 3,947 -- 686,517 -- 2,438,999
Less cost of repurchase..... (6,824,588 ) (12,687,564 ) (1,425,329 ) (2,766,200 ) (3,711,645 ) (3,207,237 )
------------ ------------ ----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET
ASSETS FROM SHARES
TRANSACTIONS.................. (2,918,652 ) (5,436,774 ) 4,360,113 12,487,941 3,491,902 14,571,178
------------ ------------ ----------- ----------- ----------- -----------
TOTAL INCREASE (DECREASE) IN
NET ASSETS.................... (4,163,083 ) 10,805,925 3,962,492 13,187,474 4,807,678 14,423,333
NET ASSETS:
Beginning of period......... 109,119,746 98,313,821 13,187,474 -- 28,129,147 13,705,814
------------ ------------ ----------- ----------- ----------- -----------
End of period (Note 4)...... $104,956,663 $109,119,746 $17,149,966 $13,187,474 $32,936,825 $28,129,147
------------ ------------ ----------- ----------- ----------- -----------
</TABLE>
<TABLE>
<CAPTION>
S & P 500 BLUE CHIP
VALUE INDEX STOCK
SERIES GROWTH & INCOME SERIES SERIES SERIES
- --------------------------------------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX-MONTH SIX-MONTH SIX-MONTH SIX-MONTH
PERIOD PERIOD PERIOD PERIOD
ENDED ENDED FOR THE ENDED ENDED
JUNE 30, JUNE 30, YEAR ENDED JUNE 30, JUNE 30,
1996 1996 DECEMBER 1996 1996
(UNAUDITED)* (UNAUDITED) 31, 1995 (UNAUDITED)* (UNAUDITED)*
---------- ----------- ----------- ---------- ----------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income....... $ 6,975 $ 937,506 $1,013,019 $ 27,761 $ 15,039
Net realized gain (loss) on
investments and foreign
currency transactions..... (1,300 ) 953,020 (355,389 ) 960 13,244
Net change in unrealized
appreciation
(depreciation) of
investments and foreign
currency.................. 53,626 4,951,090 8,815,109 183,436 86,783
---------- ----------- ----------- ---------- ----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS.................... 59,301 6,841,616 9,472,739 212,157 115,066
---------- ----------- ----------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment
income.................... -- -- (994,141 ) -- --
From net realized gains on
investments............... -- -- -- -- --
Excess distributions of net
realized gains............ -- -- -- -- --
---------- ----------- ----------- ---------- ----------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS.................. -- -- (994,141 ) -- --
---------- ----------- ----------- ---------- ----------
CAPITAL STOCK SOLD AND
REPURCHASED (NOTE 5):
Proceeds from sale of
shares.................... 3,543,236 31,466,750 34,778,769 7,623,053 6,621,826
Proceeds from shares issued
as a result of reinvested
dividends................. -- -- 994,141 -- --
Less cost of repurchase..... (3,928 ) (1,678,160 ) (994,663 ) (1,625 ) (738 )
---------- ----------- ----------- ---------- ----------
NET INCREASE (DECREASE) IN NET
ASSETS FROM SHARES
TRANSACTIONS.................. 3,539,308 29,788,590 34,778,247 7,621,428 6,621,088
---------- ----------- ----------- ---------- ----------
TOTAL INCREASE (DECREASE) IN
NET ASSETS.................... 3,598,609 36,630,206 43,256,845 7,833,585 6,736,154
NET ASSETS:
Beginning of period......... -- 59,532,930 16,276,085 -- --
---------- ----------- ----------- ---------- ----------
End of period (Note 4)...... $3,598,609 $96,163,136 $59,532,930 $7,833,585 $6,736,154
---------- ----------- ----------- ---------- ----------
</TABLE>
*For the period from March 28, 1996 (inception) to June 30, 1996.
69
<PAGE>
FORTIS SERIES FUND, INC.
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
GLOBAL GROWTH SERIES GROWTH STOCK SERIES
- --------------------------------------------------------------------------------------
FOR THE FOR THE
SIX-MONTH SIX-MONTH
PERIOD ENDED FOR THE PERIOD ENDED FOR THE
JUNE 30, YEAR ENDED JUNE 30, YEAR ENDED
1996 DECEMBER 31, 1996 DECEMBER 31,
(UNAUDITED) 1995 (UNAUDITED) 1995
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income....... $ 647,222 $ 1,108,355 $ 1,740,510 $ 2,379,239
Net realized gain (loss) on
investments and foreign
currency transactions..... (1,105,711 ) (7,950,095 ) 25,085,179 (947,755 )
Net change in unrealized
appreciation
(depreciation) of
investments and foreign
currency.................. 42,689,458 51,532,856 34,083,299 106,596,487
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS.................... 42,230,969 44,691,116 60,908,988 108,027,971
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment
income.................... -- (1,085,007 ) -- (2,351,222 )
From net realized gains on
investments............... -- -- -- --
Excess distributions of net
realized gains............ -- -- -- --
------------ ------------ ------------ ------------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS.................. -- (1,085,007 ) -- (2,351,222 )
------------ ------------ ------------ ------------
CAPITAL STOCK SOLD AND
REPURCHASED (NOTE 5):
Proceeds from sale of
shares.................... 36,431,183 27,895,172 37,529,243 60,908,396
Proceeds from shares issued
as a result of reinvested
dividends................. -- 1,085,007 -- 2,351,222
Less cost of repurchase..... (2,200,141 ) (9,320,296 ) (11,821,187 ) (15,474,378 )
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM SHARES
TRANSACTIONS.................. 34,231,042 19,659,883 25,708,056 47,785,240
------------ ------------ ------------ ------------
TOTAL INCREASE (DECREASE) IN
NET ASSETS.................... 76,462,011 63,265,992 86,617,044 153,461,989
NET ASSETS:
Beginning of period......... 207,912,903 144,646,911 530,944,527 377,482,538
------------ ------------ ------------ ------------
End of period (Note 4)...... $284,374,914 $207,912,903 $617,561,571 $530,944,527
------------ ------------ ------------ ------------
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL STOCK
SERIES AGGRESSIVE GROWTH SERIES
- ----------------------------------------------------------------------------------
FOR THE FOR THE
SIX-MONTH SIX-MONTH
PERIOD PERIOD
ENDED FOR THE ENDED FOR THE
JUNE 30, YEAR ENDED JUNE 30, YEAR ENDED
1996 DECEMBER 1996 DECEMBER
(UNAUDITED) 31, 1995 (UNAUDITED) 31, 1995
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income....... $ 527,527 $ 170,404 $ 91,252 $ 164,467
Net realized gain (loss) on
investments and foreign
currency transactions..... 441,763 237,666 (1,591,808 ) (1,338,512 )
Net change in unrealized
appreciation
(depreciation) of
investments and foreign
currency.................. 1,454,445 1,325,595 10,077,912 7,867,124
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS.................... 2,423,735 1,733,665 8,577,356 6,693,079
----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment
income.................... -- (104,078 ) -- (164,631 )
From net realized gains on
investments............... -- (193,288 ) -- --
Excess distributions of net
realized gains............ -- -- -- --
----------- ----------- ----------- -----------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS.................. -- (297,366 ) -- (164,631 )
----------- ----------- ----------- -----------
CAPITAL STOCK SOLD AND
REPURCHASED (NOTE 5):
Proceeds from sale of
shares.................... 18,014,315 19,917,541 28,280,567 31,077,834
Proceeds from shares issued
as a result of reinvested
dividends................. -- 297,366 -- 164,631
Less cost of repurchase..... (3,003,650 ) (323,884 ) (3,907,596 ) (4,353,338 )
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET
ASSETS FROM SHARES
TRANSACTIONS.................. 15,010,665 19,891,023 24,372,971 26,889,127
----------- ----------- ----------- -----------
TOTAL INCREASE (DECREASE) IN
NET ASSETS.................... 17,434,400 21,327,322 32,950,327 33,417,575
NET ASSETS:
Beginning of period......... 21,327,322 -- 46,943,262 13,525,687
----------- ----------- ----------- -----------
End of period (Note 4)...... $38,761,722 $21,327,322 $79,893,589 $46,943,262
----------- ----------- ----------- -----------
</TABLE>
70
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements
- --------------------------------------------------------------------------------
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: The fund is an open-end
management investment company which currently is comprised of fifteen
separate investment portfolios and series of capital stock: Money Market
Series, U.S. Government Securities Series, Diversified Income Series, High
Yield Series, Asset Allocation Series, Global Asset Allocation Series, Value
Series, Growth & Income Series, S & P 500 Series, Blue Chip Stock Series,
Global Growth Series, Growth Stock Series, International Stock Series and
Aggressive Growth Series, which are diversified portfolios, and Global Bond
Series which is non-diversified. Each Series has different investment
objectives and its own investment portfolio and net asset value. The
investment objectives of the Series, which can be changed at any time without
the approval of Contract owners, are as follows:+-s
- The objectives of the "Money Market Series" are high levels of capital
stability and liquidity and, to the extent consistent with these primary
objectives, a high level of current income. Money Market Series will invest
in a diversified portfolio of investment grade bonds and other debt
securities. AN INVESTMENT IN MONEY MARKET SERIES IS NEITHER INSURED NOR
GUARANTEED BY THE U.S. GOVERNMENT.
- The objective of the "U.S. Government Securities Series" is to maximize
total return (from income and market value change), while providing
shareholders with a high level of current income consistent with prudent
investment risk through investment primarily in debt securities of varying
maturities which have been issued, guaranteed, insured or collateralized by
the United States Government or its agencies or instrumentalities.
- The objective of the "Diversified Income Series" is to maximize total
return (from income and market value change), by investing primarily in a
diversified portfolio of government securities and investment grade
corporate bonds. However, up to 30% of Diversified Income Series' total
assets may be invested in non-investment grade corporate bonds and other
securities.
- The objective of the "Global Bond Series" is total return from current
income and capital appreciation. The Series invests in a global portfolio
principally consisting of high quality fixed-income securities of
governmental and corporate issuers and supranational organizations, which
securities have varying maturities and are denominated in various
currencies.
- The objective of the "High Yield Series" is to maximize total return (from
income and market value change), by investing primarily in high-yield,
high-risk fixed-income securities, which may not be suitable for all
investors.
- The objective of the "Asset Allocation Series" is maximum total return on
invested capital, to be derived primarily from capital appreciation,
dividends, and interest, by following a flexible asset allocation strategy
that contemplates increased ownership of equity securities during periods
when stock market conditions appear favorable, and increased ownership of
short and long term debt instruments during periods when stock market
conditions are less favorable.
- The objective of the "Global Asset Allocation Series" is maximum total
return, to be derived primarily from capital appreciation, dividends and
interest, by following a flexible asset allocation strategy. This strategy
contemplates increased ownership of global equity securities during periods
when stock market conditions appear favorable, and increased ownership of
global fixed-income securities during periods when stock market conditions
are less favorable.
- The primary objective of the "Value Series" is short and long-term capital
appreciation. Current income is only a secondary objective. The Series
invests primarily in equity securities and selects stocks based on the
concept of fundamental value.
- The objectives of the "Growth & Income Series" are capital appreciation and
current income, which such Series seeks by investing primarily in equity
securities that provide an income component and the potential for growth.
- The objective of the "S & P 500 Index Series" is to replicate the total
return of the Standard & Poor's 500 Composite Stock Price Index primarily
through investments in equity securities.
- The primary objective of the "Blue Chip Stock Series" is long-term growth
of capital. Current income is a secondary objective, and many of the stocks
in this Series' portfolio are expected to pay dividends.
- The primary objective of the "Growth Stock Series" is short and long-term
capital appreciation. Current income through the receipt of interest and
dividends will merely be incidental to the efforts of Growth Stock Series
in pursuing its primary objective. Growth Stock Series will seek to meet
these objectives by investing primarily in common stocks and securities
convertible into common stocks.
- The primary objective of the "Global Growth Series" is long-term capital
appreciation, which it seeks primarily by investing in a global portfolio
of equity securities, allocated among diverse international markets.
Current income through the receipt of income such as interest or dividends
from investments is a secondary objective.
- The objective of the "International Stock Series" is capital appreciation
by investing primarily in the equity securities of non-United States
companies.
- The objective of the "Aggressive Growth Series" is maximum long-term
capital appreciation by investing primarily in equity securities of small
and medium sized companies that are early in their life cycles but which
have the potential to become major enterprises and of more established
companies that have the potential for above-average capital growth.
The Articles of Incorporation of Fortis Series Fund, Inc., permits the Board
of Directors to create additional portfolios in the future. An investment in
the Money Market Series is neither insured nor guaranteed by the U.S.
Government.
Shares of the fund will not be sold directly to the public, but sold only to
Fortis Benefits Insurance Company or First Fortis Life separate accounts in
connection with variable insurance contracts and policies.
The inception of Value Series, S & P 500 Series, and Blue Chip Stock Series
was March 28, 1996 and commencement of operations was May 1, 1996.
The significant accounting policies followed by the Funds are summarized as
follows:
USE OF ESTIMATES: The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of
71
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenue and
expenses during the reporting period. Actual results could differ from those
estimates.
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 and securities traded in the over-the-counter
market 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.
SECURITIES PURCHASED ON A WHEN-ISSUED BASIS: Delivery and payment for
securities that have been purchased by all portfolios except for Money Market
Series and Growth Stock Series on a forward commitment or when-issued basis
can take place a month or more after the transaction date. During this
period, such securities are subject to market fluctuation and the portfolio
maintains, in a segregated account with its custodian, assets with a market
value equal to the amount of its purchase commitments. As of June 30, 1996
none of the portfolios had outstanding when-issued or forward commitments.
FOREIGN CURRENCY TRANSLATIONS AND FORWARD FOREIGN CURRENCY
CONTRACTS: Securities and other assets and liabilities denominated in foreign
currencies are translated daily into U.S. dollars at the closing rate of
exchange. Foreign currency amounts related to the purchase or sale of
securities, income and expenses are translated at the exchange rate on the
transaction date. The effect of changes in foreign exchange rates on realized
and unrealized security gains or losses is reflected as a component of such
gains or losses. In the statement of operations, net realized gains or losses
from foreign currency transactions may arise from sales of foreign currency,
closed forward contracts, exchange gains or losses realized between the trade
date and settlement dates on securities transactions, and other translation
gains or losses on dividends, interest income and foreign withholding taxes.
The fund may enter into forward foreign currency exchange contracts for
operational purposes and to attempt to minimize the risk from adverse
exchange rate fluctuations. The net U.S. dollar value of foreign currency
underlying all contractual commitments held by the fund and the resulting
unrealized appreciation or depreciation are determined using foreign currency
exchange rates from an independent pricing service. The fund is subject to
the credit risk that the other party will not complete the obligations of the
contract.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME: Security transactions
are accounted for on the trade date, except for Global Bond Series, Global
Asset Allocation Series, S & P 500 Index Series, Blue Chip Stock Series and
International Stock Series which account for security transactions on Trade
Date +1, and dividend income is recorded on the ex-dividend date for all
funds. Interest income is recorded on the accrual basis. Realized security
gains and losses are determined using the identified cost method. For
financial reporting purposes, including original issue discount, each
portfolio amortizes bond premium and discount.
For the period ended June 30, 1996, the cost of purchases and proceeds from
sales of securities for Money Market Series were $150,880,429 and
$140,776,170, respectively. The cost of purchases and proceeds from sales of
securities (other than short-term securities) for the other portfolios were
as follows:
<TABLE>
<CAPTION>
Cost of Proceeds
Purchases from Sales
-----------------------------------------------------------------------
<S> <C> <C>
U.S. Government Securities Series.......... $ 94,852,753 $116,213,176
Diversified Income Series.................. 64,465,213 59,090,618
Global Bond Series......................... 10,221,231 5,788,325
High Yield Series.......................... 36,603,889 32,447,232
Asset Allocation Series.................... 192,870,916 160,443,851
Global Asset Allocation Series............. 12,475,622 4,645,581
Value Series............................... 3,098,548 25,886
Growth & Income Series..................... 24,456,053 6,085,101
S & P 500 Index Series..................... 7,556,477 13,123
Blue Chip Stock Series..................... 6,401,978 401,430
Global Growth Series....................... 64,122,835 15,506,058
Growth Stock Series........................ 128,301,498 90,530,637
International Stock Series................. 21,466,462 5,696,720
Aggressive Growth Series................... 22,025,931 6,507,298
</TABLE>
LENDING OF PORTFOLIO SECURITIES: At June 30, 1996, securities valued at
$72,441,759 were on loan to brokers from Global Growth Series. For
collateral, the portfolio's custodian received $72,455,600 in cash which is
maintained in a separate account and invested by the custodian in short-term
investment vehicles. Fee income from securities lending amounted to $34,748
for the period ended June 30, 1996 for Global Growth Series. The risks to the
portfolio 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.
FEDERAL 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.
Net investment income and net realized gains differ for financial statement
and tax purposes primarily because of the recognition of realized gain (loss)
from foreign currency transactions as ordinary income (loss) for tax purposes
and the deferral of "wash sale" losses for tax purposes. The character of
distributions made during the year from net investment income or net realized
gains may also differ from its ultimate characterization for federal income
tax purposes.
On the Statements of Assets and Liabilities, due to permanent book-to-tax
differences, reclassification adjustments in the following amounts
72
<PAGE>
- --------------------------------------------------------------------------------
have been made to increase (decrease) accumulated net realized gain (loss)
with an offsetting increase (decrease) to undistributed net investment
income.
<TABLE>
<CAPTION>
Global
Global Asset Global
Bond Allocation Growth International
Series Series Series Stock Series
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Accumulated Net Realized Gain
(Loss)....................... $ (67,287) (64,657) 11,065 1,545
Undistributed Net Investment
Income....................... $ 67,287 64,657 (11,065) (1,545)
</TABLE>
For federal income tax purposes the portfolios had the following capital loss
carryovers at December 31, 1995, which, if not offset by subsequent capital
gains, will expire in 1996 through 2004. It is unlikely the Board of
Directors will authorize a distribution of any net realized gains until the
available capital loss carryovers have been offset or expired.
<TABLE>
<S> <C>
Money Market Series........................... $ 121,076
U.S. Government Securities Series............. 20,146,180
Diversified Income Series..................... 8,826,504
High Yield Series............................. 1,323,098
Asset Allocation Series....................... 6,876,891
Growth & Income Series........................ 405,812
Global Growth Series.......................... 13,781,136
Growth Stock Series........................... 27,058,017
Aggressive Growth Series...................... 1,448,091
</TABLE>
ILLIQUID SECURITIES: At June 30, 1996, investments in securities for the
funds included issues that are illiquid. Money Market Series, U.S. Government
Series, Diversified Income Series, Asset Allocation Series, and Growth Series
currently limit investments in illiquid securities to 5% of net assets;
Global Growth Series to 10%; Global Bond Series, High Yield Series, Global
Asset Allocation Series, Growth and Income Series, International Stock
Series, and Aggressive Growth Series to 15%, of net assets, at market value,
at date of purchase. The aggregate values of such securities at June 30, 1996
were: $3,791,963 Diversified Income Series; $7,958,996 Asset Allocation
Series; $3,396,698 High Yield Series; $9,288,760 Global Growth Series;
$335,853 International Stock Series, which represents 3.61%, 2.15%, 10.31%,
3.27%, .87%, of net assets, respectively. Pursuant to guidelines adopted by
the Board of Directors, certain unregistered securities are determined to be
liguid and are not included within the percent limitations specified above.
INCOME AND CAPITAL GAINS DISTRIBUTIONS: The portfolios intend to make income
and capital gains distributions, if any, on an annual basis. All
distributions will be reinvested in additional shares of the portfolio at net
asset value.
2. PAYMENTS TO RELATED PARTIES: Fortis Advisers, Inc., (Advisers), is the
investment adviser for each series. Investment advisory and management fees
are based on each series' average daily net assets and decrease in reduced
percentages as average daily net assets increase.
The following chart represents the annual fee percentages:
<TABLE>
<CAPTION>
Annual Investment
Advisory and
Series Average Net Assets Management Fee
- -----------------------------------------------------------------------------------
<S> <C> <C>
Money Market Series For the first $500 million .3%
For assets over $500 million .25%
U.S. Government Securities Series For the first $50 million .5%
For assets over $50 million .45%
Diversified Income Series For the first $50 million .5%
For assets over $50 million .45%
Global Bond Series For the first $100 million .75%
For assets over $100 million .65%
High Yield Series For the first $250 million .5%
For assets over $250 million .45%
Asset Allocation Series For the first $250 million .5%
For assets over $250 million .45%
Global Asset Allocation Series For the first $100 million .9%
For assets over $100 million .85%
Value Series For the first $100 million .7%
For assets over $100 million .6%
Growth & Income Series For the first $100 million .7%
For assets over $100 million .6%
S & P 500 Index Series For all assets .4%
Blue Chip For the first $100 million .9%
Stock Series For assets over $100 million .85%
Global Growth Series For the first $500 million .7%
For assets over $500 million .6%
Growth Stock Series For the first $100 million .7%
For assets over $100 million .6%
International Stock Series For the first $100 million .85%
For assets over $100 million .80%
Aggressive Growth Series For the first $100 million .7%
For assets over $100 million .6%
</TABLE>
The Global Bond Series, Global Asset Allocation Series, S & P 500 Series,
Blue Chip Stock Series, and International Stock Series have retained sub-
advisers under and investment sub-advisory agreement to provide investment
advice and, in general, to conduct the management investment program of each
portfolio, subject to the general control of Advisers and the Board of
Directors of the Fortis Series Fund, Inc. Pursuant to the sub-advisory
agreements, each sub-adviser will regularly provide its respective portfolio
with investment research, advice and supervision and furnish continuously an
investment program for each portfolio consistent with its investment
objectives and policies, including the purchase, retention and disposition of
securities.
73
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
From its advisory fee, Advisers pays the following fees to each of the sub-
advisers:
<TABLE>
<CAPTION>
Annual
Advisory
Series Sub-Adviser Average Net Assets Fee
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Global Bond Mercury Asset Management For the first $100 million .35%
Series International Ltd. For assets over $100 million .225%
Global Asset Morgan Stanley Asset For the first $100 million .5%
Allocation Management Limited For assets over $100 million .4%
Series
S & P 500 The Dreyfus Corporation For all levels of assets .17%
Series
Blue Chip T. Rowe Price Associates, For the first $100 million .50%
Stock Series Inc. For assets over $100 million .45%
International Lazard-Freres Asset For the first $100 million .45%
Stock Series Management For assets over $100 million .375%
</TABLE>
For the period ended June 30, 1996, legal fees and expenses were paid as
follows to a law firm of which the secretary of the fund is a partner.
<TABLE>
<CAPTION>
Series Amount
- ------------------------------------------------------------------
<S> <C>
Money Market Series.................................... $ 1,247
U.S. Government Securities Series...................... 2,984
Diversified Income Series.............................. 1,403
Global Bond Series..................................... 8,645
High Yield Series...................................... 298
Asset Allocation Series................................ 6,728
Global Asset Allocation Series......................... 5,967
Value Series........................................... 1,245
Growth & Income Series................................. 497
S & P 500 Series....................................... 1,245
Blue Chip Stock Series................................. 1,245
Global Growth Series................................... 2,834
Growth Stock Series.................................... 19,565
International Stock Series............................. 3,462
Aggressive Growth Series............................... 486
</TABLE>
3. FORWARD FOREIGN CURRENCY CONTRACTS: At June 30, 1996, the Global Bond Series,
the Global Asset Allocation Series and the International Stock Series entered
into forward foreign currency exchange contracts that obligated the Series to
deliver/receive currencies at a specified future date. The unrealized
appreciation (depreciation) of ($24,923), $7,132 and $(2,440), respectively,
on these contracts is included in the accompanying financial statements. The
terms of the open contracts are as follows:
<TABLE>
<CAPTION>
GLOBAL BOND SERIES
-------------------------------------------------------------------------------------
U.S. Dollar U.S. Dollar
Currency To Value As Of Currency To Value As Of
Settle Date Be Delivered June 30, 1996 Be Received June 30, 1996
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
July 18, 1996 1,040,000 $1,614,574 1,569,360 $1,569,360
British Pound U.S. Dollar
Sterling
July 18, 1996 3,050,000 2,236,092 2,234,921 2,234,921
Canadian U.S. Dollar
Dollar
July 18, 1996 3,333,000 568,403 565,339 565,339
Danish Krone U.S. Dollar
<CAPTION>
U.S. Dollar U.S. Dollar
Currency To Value As Of Currency To Value As Of
Settle Date Be Delivered June 30, 1996 Be Received June 30, 1996
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
July 18, 1996 4,134,106 705,022 1,070,000 703,191
Danish Krone Deutsche Mark
July 18, 1996 5,343,375 3,511,600 3,553,738 3,553,738
Deutsche Mark U.S. Dollar
July 18, 1996 6,900,000 1,340,880 1,352,053 1,352,053
French Franc U.S. Dollar
July 18, 1996 80,290,000 734,127 761,982 761,982
Japanese Yen U.S. Dollar
July 18, 1996 45,700,000 355,963 354,037 354,037
Spanish U.S. Dollar
Peseta
July 18, 1996 2,025,000 304,934 304,603 304,603
Swedish Krona U.S. Dollar
July 18, 1996 766,962 766,962 1,040,000 762,471
U.S. Dollar Canadian
Dollar
July 18, 1996 160,000 160,000 943,920 160,975
U.S. Dollar Danish Krone
July 18, 1996 715,000 715,000 1,091,412 717,262
U.S. Dollar Deutsche Mark
July 18, 1996 817,688 817,688 4,245,000 824,933
U.S. Dollar French Franc
July 18, 1996 2,376,869 2,376,869 253,242,125 2,315,505
U.S. Dollar Japanese Yen
July 18, 1996 760,554 760,554 1,302,065 763,375
U.S. Dollar Netherland
Guilder
------------- -------------
$16,968,668 $16,943,745
------------- -------------
</TABLE>
<TABLE>
<CAPTION>
GLOBAL ASSET ALLOCATION AS OF 6/30/96
-------------------------------------------------------------------------------------
U.S. Dollar U.S. Dollar
Currency To Value As Of Currency To Value As Of
Settle Date Be Delivered June 30, 1996 Be Received June 30, 1996
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aug. 13, 1996 800,000 $ 469,714 473,525 $ 473,525
Netherland U.S. Dollar
Guilder
Aug. 14, 1996 200,000 146,794 146,563 146,563
Canadian U.S. Dollar
Dollar
Aug. 15, 1996 800,000 640,188 644,693 644,693
Swiss Franc U.S. Dollar
Aug. 20, 1996 1,400,000 921,496 917,762 917,762
Deutsche Mark U.S. Dollar
Aug. 30, 1996 11,000,000 101,237 101,157 101,157
Japanese Yen U.S. Dollar
Aug. 30, 1996 101,157 101,157 160,616,500 104,018
U.S. Dollar Italian Lira
------------- -------------
$2,380,586 $2,387,718
------------- -------------
</TABLE>
<TABLE>
<S> <C> <C> <C> <C>
74
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. Dollar U.S. Dollar
Currency To Value As Of Currency To Value As Of
Settle Date Be Delivered June 30, 1996 Be Received June 30, 1996
-------------------------------------------------------------------------------------
INTERNATIONAL STOCK SERIES
-------------------------------------------------------------------------------------
U.S. Dollar U.S. Dollar
Currency To Value As Of Currency To Value As Of
Settle Date Be Delivered June 30, 1996 Be Received June 30, 1996
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
July 1, 1996 216,059 $ 216,059 23,528,774 $ 214,519
U.S. Dollar Japanese Yen
July 1, 1996 114,743 114,743 143,257 114,455
U.S. Dollar Swiss Franc
July 2, 1996 100,396 100,396 65,002 101,001
U.S. Dollar British Pound
July 3, 1996 68,663 68,663 86,920 68,410
U.S. Dollar Australian
Dollar
July 3, 1996 105,378 105,378 106,079 105,167
U.S. Dollar Deutsche Mark
July 31, 1996 187,382 187,382 960,777 186,628
U.S. Dollar French Franc
------------- -------------
$ 792,620 $ 790,180
------------- -------------
</TABLE>
4. NET ASSETS INCLUDE UNDISTRIBUTED NET INVESTMENT INCOME OF:
<TABLE>
<CAPTION>
1996* 1995**
---------------------------------------------------------------------------
<S> <C> <C>
Money Market Series........................ 3,350,018 2,222,937
U.S. Government Securities Series.......... 17,493,217 11,853,720
Diversified Income Series.................. 12,011,372 08,212,963
Global Bond Series......................... 458,175 --
High Yield Series.......................... 1,614,289 30,053
Asset Allocation Series.................... 7,093,382 135,184
Global Asset Allocation Series............. 492,911 690
Value Series............................... 6,975 --
Growth & Income Series..................... 959,777 22,271
S & P 500 Index Series..................... 27,761 --
Blue Chip Stock Series..................... 15,039 --
Global Growth Series....................... 663,547 27,390
Growth Stock Series........................ 1,769,240 28,730
International Stock Series................. 538,882 12,900
Aggressive Growth Series................... 91,252 --
* June 30, 1996
** December 31, 1995
</TABLE>
5. SHARES OF CAPITAL STOCK SOLD AND REPURCHASED
<TABLE>
<CAPTION>
SHARES ISSUED AS A
RESULT OF
REINVESTMENT OF
SHARES SOLD DIVIDENDS SHARES REPURCHASED NET INCREASE OF SHARES
--------------------- --------------------- --------------------- -----------------------
1996* 1995 1996* 1995 1996* 1995 1996* 1995
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Money Market Series................ 2,633,180 3,402,945 -- 151,377 1,748,039 3,910,030 885,141 (355,708)
U.S. Government Securities
Series............................. 381,542 1,003,644 -- 873 1,417,951 3,010,238 (1,036,409) (2,005,721)
Diversified Income Series.......... 323,843 634,079 -- 360 567,990 1,139,383 (244,147) (504,944)
Global Bond Series................. 521,897 1,347,679 -- 61,377 128,499 241,825 393,398 1,167,231
High Yield Series.................. 716,361 1,501,657 -- 251,886 368,698 312,519 347,663 1,441,024
Asset Allocation Series............ 1,485,368 2,038,210 -- 831,716 681,779 605,840 803,589 2,264,086
Global Asset Allocation Series..... 885,679 1,752,325 -- 48,124 229,878 42,702 655,801 1,757,747
Value Series**..................... 345,650 -- -- -- 379 -- 345,271 --
Growth & Income Series............. 2,339,669 3,028,308 -- 79,311 26,128 85,117 2,213,541 3,022,502
S & P Index Series**............... 755,384 -- -- -- 162 -- 755,222 --
Blue Chip Stock Series**........... 659,811 -- -- -- 73 -- 659,738 --
Global Growth Series............... 2,096,427 1,889,132 -- 70,385 129,048 695,692 1,967,379 1,263,825
Growth Stock Series................ 1,261,391 2,352,546 -- 86,651 395,172 614,975 866,219 1,824,222
International Stock Series......... 1,546,659 1,894,172 -- 26,914 256,106 29,018 1,290,553 1,892,068
Aggressive Growth Series........... 2,051,147 2,658,950 -- 13,701 298,519 349,765 1,752,628 2,322,886
* For the Six-Month Period Ended June 30, 1996
** For the period from March 28, 1996 (inception) to June 30, 1996.
</TABLE>
75
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
6. FINANCIAL HIGHLIGHTS: Selected per share historical data for each of the
Series is presented based upon weighted average fund shares outstanding.
<TABLE>
<CAPTION>
Year Ended December 31,
-------------------------------------------------------------
MONEY MARKET SERIES 1996* 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 10.83 $ 10.63 $ 10.23 $ 10.21 $ 10.15 $ 10.19
--------- --------- --------- --------- --------- ---------
Operations:
Investment income - net............... .20 .60 .41 .28 .36 .62
Net realized and unrealized gains
(losses) on investments............. .07 -- (.01) .02 .06 (.02)
--------- --------- --------- --------- --------- ---------
Total from operations................... .27 .60 .40 .30 .42 .60
--------- --------- --------- --------- --------- ---------
Distribution to shareholders:
From investment income - net.......... -- (.40) -- (.28) (.36) (.64)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period........ $ 11.10 $ 10.83 $ 10.63 $ 10.23 $ 10.21 $ 10.15
--------- --------- --------- --------- --------- ---------
Total Return @.......................... 2.52% 5.71% 3.92% 2.77% 3.36% 5.91%
Net assets end of period (000s
omitted).............................. $ 52,686 $ 41,807 $ 44,833 $ 28,682 $ 27,528 $ 10,737
Ratio of expenses to average daily net
assets................................ .38%** .40% .40% .44% .46% .55%
Ratio of net investment income to
average daily net assets.............. 4.72%** 5.44% 3.96% 2.74% 3.51% 5.74%
Portfolio turnover rate................. N/A*** N/A*** N/A*** N/A*** N/A*** N/A***
</TABLE>
* For six-month period ended June 30, 1996.
** Annualized
*** Pursuant to Rule 2a-7 under the Investment Company Act of 1940, the
portfolio turnover rate is not applicable.
@ These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions.
<TABLE>
<CAPTION>
Year Ended December 31,
-------------------------------------------------------------
U.S. GOVERNMENT SECURITIES SERIES 1996* 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 11.16 $ 9.40 $ 10.94 $ 10.73 $ 10.77 $ 9.80
--------- --------- --------- --------- --------- ---------
Operations:
Investment income - net............... .40 .70 .71 .74 .78 .77
Net realized and unrealized gains
(losses) on investments............. (.65) 1.06 (1.54) .46 .15 .98
--------- --------- --------- --------- --------- ---------
Total from operations................... (.25) 1.76 (.83) 1.20 .93 1.75
--------- --------- --------- --------- --------- ---------
Distribution to shareholders:
From investment income - net.......... -- -- (.71) (.74) (.78) (.78)
From net realized gains............... -- -- -- (.24) (.19) --
Excess distributions of net realized
gains............................... -- -- -- (.01) -- --
--------- --------- --------- --------- --------- ---------
Total distributions to shareholders..... -- -- (.71) (.99) (.97) (.78)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period.......... $ 10.91 $ 11.16 $ 9.40 $ 10.94 $ 10.73 $ 10.77
--------- --------- --------- --------- --------- ---------
Total Return @.......................... (2.25%) 18.78% (6.44%) 9.45% 6.14% 14.36%
Net assets end of period (000s
omitted).............................. $ 167,273 $ 182,687 $ 172,656 $ 235,588 $ 132,683 $ 49,751
Ratio of expenses to average daily net
assets................................ .53%** .53% .53% .52% .57% .64%
Ratio of net investment income to
average daily net assets.............. 6.45%** 6.78% 6.87% 6.49% 7.10% 7.57%
Portfolio turnover rate................. 57% 115% 187% 141% 135% 77%
</TABLE>
* For six-month period ended June 30, 1996.
** Annualized
@ These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions.
76
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6. FINANCIAL HIGHLIGHTS (continued):
Year Ended December 31,
-------------------------------------------------------------
DIVERSIFIED INCOME SERIES 1996* 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 12.20 $ 10.40 $ 11.93 $ 11.34 $ 11.22 $ 10.40
--------- --------- --------- --------- --------- ---------
Operations:
Investment income - net............... .43 .88 .87 .87 .82 .81
Net realized and unrealized gains
(losses) on investments............. (.57) .92 (1.53) 1.03 .33 .87
--------- --------- --------- --------- --------- ---------
Total from operations................... (.14) 1.80 (.66) 1.90 1.15 1.68
--------- --------- --------- --------- --------- ---------
Distribution to shareholders:
From investment income - net.......... -- -- (.87) (.87) (.81) (.86)
From net realized gains............... -- -- -- (.01) (.01) --
Excess distributions of net realized
gains............................... -- -- -- (.43) (.21) --
--------- --------- --------- --------- --------- ---------
Total distributions to shareholders..... -- -- (.87) (1.31) (1.03) (.86)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period.......... $ 12.06 $ 12.20 $ 10.40 $ 11.93 $ 11.34 $ 11.22
--------- --------- --------- --------- --------- ---------
Total Return @.......................... (1.12%) 17.26% (5.22%) 12.76% 7.08% 14.68%
Net assets end of period (000s
omitted).............................. $ 104,957 $ 109,120 $ 98,314 $ 92,589 $ 28,490 $ 8,503
Ratio of expenses to average daily net
assets................................ .54%** .55% .55% .57% .67% .75%
Ratio of net investment income to
average daily net assets.............. 7.09%** 7.78% 7.59% 7.15% 7.08% 7.42%
Portfolio turnover rate................. 57% 139% 142% 125% 83% 25%
</TABLE>
* For the six-month period ended June 30, 1996.
** Annualized
@ These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions.
<TABLE>
<CAPTION>
GLOBAL BOND SERIES 1996* 1995**
<S> <C> <C>
- -----------------------------------------------------------------
Net asset value, beginning of period.... $ 11.30 $ 10.00
--------- ---------
Operations:
Investment income - net............... .20 .54
Net realized and unrealized gains
(losses) on investments............. (.50) 1.53
--------- ---------
Total from operations................... (.31) 2.07
--------- ---------
Distribution to shareholders:
From investment income - net.......... -- (.54)
Excess distribution of net realized
gains............................... -- (.04)
From net realized gains............... -- (.18)
--------- ---------
Total distributions to shareholders..... -- (.76)
--------- ---------
Net asset value, end of period.......... $ 10.99 $ 11.30
--------- ---------
Total Return @.......................... (2.73%) 19.02%
Net assets end of period (000s
omitted).............................. $ 17,150 $ 13,187
Ratio of expenses to average daily net
assets................................ 1.05%*** 1.28%***
Ratio of net investment income to
average daily net assets.............. 5.08%*** 5.01%***
Portfolio turnover rate................. 40% 184%
</TABLE>
* For the six-month period ended June 30, 1996.
** For the Period January 3, 1995 (commencement of operations) to
December 31, 1995. The portfolio's inception was December 14, 1994,
when it was initially capitalized. However, the portfolio's shares did
not become effectively registered under the Securities Act of 1933
until January 3,1995. Supplementary information is not presented for
the period from December 14, 1994, through January 3, 1995, as the
portfolio's shares were not registered during that period.
*** Annualized.
@ These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions.
77
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6. FINANCIAL HIGHLIGHTS (continued):
Year Ended December
31,
----------------------
HIGH YIELD SERIES 1996* 1995 1994**
<S> <C> <C> <C>
- ------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 9.74 $ 9.47 $ 10.00
--------- --------- ---------
Operations:
Investment income - net............... .51 1.15 .71
Net realized and unrealized gains
(losses) on investments............. (.07) .30 (.53)
--------- --------- ---------
Total from operations................... .44 1.45 (.18)
--------- --------- ---------
Distribution to shareholders:
From investment income - net.......... -- (1.14) (.71)
Excess distribution of net realized
gains............................... -- (.04) --
--------- --------- ---------
Total distributions to shareholders..... -- (1.18) (.71)
--------- --------- ---------
Net asset value, end of period.......... $ 10.18 $ 9.74 $ 9.47
--------- --------- ---------
Total Return @.......................... 4.51% 12.73% (.75%)
Net assets end of period (000s
omitted).............................. $ 32,937 $ 28,129 $ 13,706
Ratio of expenses to average daily net
assets................................ .60%*** .63% .75%***
Ratio of net investment income to
average daily net assets.............. 10.32%*** 11.26% 10.44%***
Portfolio turnover rate................. 111% 130% 20%
</TABLE>
* For the six-month period ended June 30, 1996.
** For the Period May 2, 1994 (commencement of operations) to December
31, 1994. The portfolio's inception was April 26, 1994, when it was
initially capitalized. However, the portfolio's shares did not become
effectively registered under the Securities Act of 1933 until May 2,
1994. Supplementary information is not presented for the period from
April 26, 1994, through May 2, 1994, as the portfolio's shares were
not registered during that period.
*** Annualized.
@ These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions.
<TABLE>
<CAPTION>
Year Ended December 31,
-------------------------------------------------------------
ASSET ALLOCATION SERIES 1996* 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 15.90 $ 13.56 $ 14.14 $ 13.28 $ 12.81 $ 10.37
--------- --------- --------- --------- --------- ---------
Operations:
Investment income - net............... .31 .65 .56 .52 .62 .59
Net realized and unrealized gains
(losses) on investments............. .42 2.35 (.58) .92 .47 2.43
--------- --------- --------- --------- --------- ---------
Total from operations................... .73 3.00 (.02) 1.44 1.09 3.02
--------- --------- --------- --------- --------- ---------
Distribution to shareholders:
From investment income - net.......... -- (.64) (.56) (.52) (.62) (.58)
From net realized gains............... -- (.02) -- (.06) -- --
--------- --------- --------- --------- --------- ---------
Total distributions to shareholders..... -- (.66) (.56) (.58) (.62) (.58)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period.......... $ 16.63 $ 15.90 $ 13.56 $ 14.14 $ 13.28 $ 12.81
--------- --------- --------- --------- --------- ---------
Total Return @.......................... 4.58% 21.97% (.31%) 9.79% 6.95% 27.65%
Net assets end of year (000s omitted)... $ 370,528 $ 341,511 $ 260,593 $ 204,603 $ 89,076 $ 31,821
Ratio of expenses to average daily net
assets................................ .53%** .55% .56% .56% .60% .70%
Ratio of net investment income to
average daily net assets.............. 3.88%** 4.25% 4.05% 3.72% 4.78% 5.04%
Portfolio turnover rate................. 47% 98% 73% 74% 54% 42%
Average commission rate paidDiamond..... $ .0770 -- -- -- -- --
</TABLE>
* For the six-month period ended June 30, 1996.
** Annualized.
@ These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions.
Diamond In accordance with new SEC guidelines under the 1934 Act, beginning in
1996 average commission rate during a funds fiscal year must be
disclosed.
78
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6. FINANCIAL HIGHLIGHTS (continued):
GLOBAL ASSET ALLOCATION SERIES 1996* 1995***
<S> <C> <C>
- -----------------------------------------------------------------
Net asset value, beginning of period.... $ 11.42 $ 10.00
--------- ---------
Operations:
Investment income - net............... .24 .35
Net realized and unrealized gains
(losses) on investments............. .51 1.55
--------- ---------
Total from operations................... .75 1.90
--------- ---------
Distribution to shareholders:
From investment income - net.......... -- (.34)
From net realized gains............... -- (.14)
--------- ---------
Total distributions to shareholders..... -- (.48)
--------- ---------
Net asset value, end of period.......... $ 12.17 $ 11.42
--------- ---------
Total Return @.......................... 6.55% 17.47%
Net assets end of period (000s
omitted).............................. $ 29,378 $ 20,080
Ratio of expenses to average daily net
assets................................ 1.14%** 1.28%**
Ratio of net investment income to
average daily net assets.............. 3.47%** 3.26%**
Portfolio turnover rate................. 23% 44%
Average commission rate paidDiamond..... $ .1100 --
</TABLE>
* For the six-month period ended June 30, 1996.
** Annualized.
*** For the Period January 3, 1995 (commencement of operations) to
December 31, 1995. The portfolio's inception was December 14, 1994,
when it was initially capitalized. However, the portfolio's shares did
not become effectively registered under the Securities Act of 1933
until January 3,1995. Supplementary information is not presented for
the period from December 14, 1994, through January 3, 1995, as the
portfolio's shares were not registered during that period.
@ These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions.
Diamond In accordance with new SEC guidelines under the 1934 Act, beginning in
1996 average commission rate during a funds fiscal year must be
disclosed.
<TABLE>
<CAPTION>
VALUE SERIES 1996*
<S> <C>
- ----------------------------------------------------
Net asset value, beginning of period.... $ 10.27
---------
Operations:
Investment income - net............... .04
Net realized and unrealized gains
(losses) on investments............. .11
---------
Total from operations................... .15
---------
Distribution to shareholders:
From investment income - net.......... --
From net realized gains............... --
---------
Total distributions..................... --
---------
Net asset value, end of period.......... $ 10.42
---------
Total Return @.......................... 1.68%
Net assets end of period (000s
omitted).............................. $ 3,599
Ratio of expenses to average daily net
assets................................ 1.20%**
Ratio of net investment income to
average daily net assets.............. 1.49%**
Portfolio turnover rate................. 2%
Average commission rate paidDiamond..... $ .0444
</TABLE>
* For the Period May 1, 1996 (commencement of operations) to June 30,
1996. The portfolio's inception was March 28, 1996, when it was
initially capitalized. However, the portfolio's shares did not become
effectively registered under the Securities Act of 1933 until May 1,
1996. Supplementary information is not presented for the period from
March 28, 1996, through May 1, 1996, as the portfolio's shares were
not registered during that period.
** Annualized.
@ These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions.
Diamond In accordance with new SEC guidelines under the 1934 Act, beginning in
1996 average commission rate during a funds fiscal year must be
disclosed.
79
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6. FINANCIAL HIGHLIGHTS (continued):
Year Ended December
31,
----------------------
GROWTH & INCOME SERIES 1996* 1995 1994***
<S> <C> <C> <C>
- ------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 12.83 $ 10.07 $ 10.00
--------- --------- ---------
Operations:
Investment income - net............... .16 .33 .21
Net realized and unrealized gains
(losses) on investments............. 1.04 2.76 (.07)
--------- --------- ---------
Total from operations................... 1.20 3.09 .28
--------- --------- ---------
Distribution to shareholders:
From investment income - net.......... -- (.33) (.21)
--------- --------- ---------
Net asset value, end of period........ $ 14.03 $ 12.83 $ 10.07
--------- --------- ---------
Total Return @.......................... 9.35% 29.70% 1.74%
Net assets end of period (000s
omitted)............................... $ 96,163 $ 59,532 $ 16,276
Ratio of expenses to average daily net
assets................................ .74%** .80% .86%**
Ratio of net investment income to
average daily net assets.............. 2.42%** 2.86% 3.12%**
Portfolio turnover rate................. 9% 17% 2%
Average commission rate paidDiamond..... $ .0705 -- --
</TABLE>
* For the six-month period ended June 30, 1996.
** Annualized.
*** For the Period May 2, 1994 (commencement of operations) to December
31, 1994. The portfolio's inception was April 26, 1994, when it was
initially capitalized. However, the portfolio's shares did not become
effectively registered under the Securities Act of 1933 until May 2,
1994. Supplementary information is not presented for the period from
April 26, 1994, through May 2, 1994, as the portfolio's shares were
not registered during that period.
@ These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions.
Diamond In accordance with new SEC guidelines under the 1934 Act, beginning in
1996 average commission rate during a funds fiscal year must be
disclosed.
<TABLE>
<CAPTION>
S & P 500 INDEX SERIES 1996*
<S> <C>
- ----------------------------------------------------
Net asset value, beginning of period.... $ 10.09
---------
Operations:
Investment income - net............... .04
Net realized and unrealized gains
(losses) on investments............. .24
---------
Total from operations................... .28
---------
Distribution to shareholders:
From investment income - net.......... --
From net realized gains............... --
---------
Total distributions to shareholders..... --
---------
Net asset value, end of period.......... $ 10.37
---------
Total Return @.......................... 2.90%
Net assets end of period (000s
omitted).............................. $ 7,834
Ratio of expenses to average daily net
assets................................ .59%**
Ratio of net investment income to
average daily net assets.............. 2.62%**
Portfolio turnover rate................. .28%
Average commission rate paid Diamond.... $ .0369
</TABLE>
* For the Period May 1, 1996 (commencement of operations) to June 30,
1996. The portfolio's inception was March 28, 1996, when it was
initially capitalized. However, the portfolio's shares did not become
effectively registered under the Securities Act of 1933 until May 1,
1996. Supplementary information is not presented for the period from
March 28, 1996, through May 1, 1996, as the portfolio's shares were
not registered during that period.
** Annualized.
@ These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions.
Diamond In accordance with new SEC guidelines under the 1934 Act, beginning in
1996 average commission rate during a funds fiscal year must be
disclosed.
80
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6. FINANCIAL HIGHLIGHTS (continued):
BLUE CHIP STOCK SERIES 1996*
<S> <C>
- ----------------------------------------------------
Net asset value, beginning of period.... $ 10.07
---------
Operations:
Investment income - net............... .03
Net realized and unrealized gains
(losses) on investments............. .11
---------
Total from operations................... .14
---------
Distribution to shareholders:
From investment income - net.......... --
From net realized gains............... --
---------
Total distributions to shareholders..... --
---------
Net asset value, end of period.......... $ 10.21
---------
Total Return @.......................... 1.60%
Net assets end of period (000s
omitted).............................. $ 6,736
Ratio of expenses to average daily net
assets................................ 1.12%**
Ratio of net investment income to
average daily net assets.............. 1.57%**
Portfolio turnover rate................. 10%
Average commission rate paid Diamond.... $ .0327
</TABLE>
* For the Period May 1, 1996 (commencement of operations) to June 30,
1996. The portfolio's inception was March 28, 1996, when it was
initially capitalized. However, the portfolio's shares did not become
effectively registered under the Securities Act of 1933 until May 1,
1996. Supplementary information is not presented for the period from
March 28, 1996, through May 1, 1996, as the portfolio's shares were
not registered during that period.
** Annualized.
@ These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions.
Diamond In accordance with new SEC guidelines under the 1934 Act, beginning in
1996 average commission rate during a funds fiscal year must be
disclosed.
<TABLE>
<CAPTION>
Year Ended December 31,
------------------------------------------------
GLOBAL GROWTH SERIES 1996* 1995 1994 1993 1992***
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 15.97 $ 12.31 $ 12.77 $ 10.86 $ 9.824
--------- --------- --------- --------- ---------
Operations:
Investment income - net............... .05 .09 .10 .06 .05
Net realized and unrealized gains
(losses) on investments............. 2.96 3.66 (.46) 1.91 1.04
--------- --------- --------- --------- ---------
Total from operations................... 3.01 3.75 (.36) 1.97 1.09
--------- --------- --------- --------- ---------
Distribution to shareholders:
From investment income - net.......... -- (.09) (.10) (.06) (.05)
--------- --------- --------- --------- ---------
Net asset value, end of period........ $ 18.98 $ 15.97 $ 12.31 $ 12.77 $ 10.86
--------- --------- --------- --------- ---------
Total Return @.......................... 18.82% 30.49% (2.98%) 17.92% 10.88%
Net assets end of period (000s
omitted).............................. $ 284,375 $ 207,913 $ 144,647 $ 75,882 $ 11,091
Ratio of expenses to average daily net
assets................................ .77%** .80% .81% 1.02% 1.22%**
Ratio of net investment income to
average daily net assets.............. .53%** .64% .82% .53% .73%**
Portfolio turnover rate................. 7% 29% 20% 19% 21%
Average commission rate paidDiamond..... $ .0278 -- -- -- --
</TABLE>
* For the six-month period ended June 30, 1996.
** Annualized.
*** For the Period May 1, 1992 (commencement of operations) to December
31, 1992. The portfolio's inception was April 13, 1992, when it was
initially capitalized. However, the portfolio's shares did not become
effectively registered under the Securities Act of 1933 until May 1,
1992. Supplementary information is not presented for the period from
April 13, 1992, through May 1, 1992, as the portfolio's shares were
not registered during that period.
@ These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions.
Diamond In accordance with new SEC guidelines under the 1934 Act, beginning in
1996 average commission rate during a funds fiscal year must be
disclosed.
81
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6. FINANCIAL HIGHLIGHTS (continued):
Year Ended December 31,
-------------------------------------------------------------
GROWTH STOCK SERIES 1996* 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 28.09 $ 22.11 $ 22.92 $ 21.15 $ 20.68 $ 13.57
--------- --------- --------- --------- --------- ---------
Operations:
Investment income - net............... .09 .13 .18 .09 .18 .22
Net realized and unrealized gains
(losses) on investments............. 3.06 5.98 (.81) 1.77 .47 7.11
--------- --------- --------- --------- --------- ---------
Total from operations................... 3.15 6.11 (.63) 1.86 .65 7.33
--------- --------- --------- --------- --------- ---------
Distribution to shareholders:
From investment income - net.......... -- (.13) (.18) (.09) (.18) (.22)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period.......... $ 31.24 $ 28.09 $ 22.11 $ 22.92 $ 21.15 $ 20.68
--------- --------- --------- --------- --------- ---------
Total Return @.......................... 11.22% 27.66% (2.82%) 8.78% 2.94% 53.50%
Net assets end of period (000s
omitted)............................ $ 617,562 $ 530,945 $ 377,483 $ 304,293 $ 188,172 $ 100,690
Ratio of expenses to average daily net
assets.............................. .66%** .67% .68% .69% .76% .81%
Ratio of net investment income to
average daily net assets............ .60%** .51% .81% .46% .92% 1.28%
Portfolio turnover rate............... 19% 20% 19% 26% 24% 31%
Average commission rate paidDiamond... $ .0719 -- -- -- -- --
</TABLE>
* For the six-month period ended June 30, 1996.
** Annualized.
@ These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions.
Diamond In accordance with new SEC guidelines under the 1934 Act, beginning in
1996 average commission rate during a funds fiscal year must be
disclosed.
<TABLE>
<CAPTION>
Year Ended December
31,
----------------------
INTERNATIONAL STOCK SERIES 1996* 1995**
<S> <C> <C>
- -----------------------------------------------------------------
Net asset value, beginning of
period.............................. $ 11.27 $ 10.00
--------- ---------
Operations:
Investment income - net............. .21 .14
Net realized and unrealized gains
(losses) on investments............ .70 1.38
--------- ---------
Total from operations................... .91 1.52
--------- ---------
Distribution to shareholders:
From investment income - net........ -- (.09)
From net realized gains............. -- (.16)
--------- ---------
Total distributions to shareholders..... -- (.25)
--------- ---------
Net asset value, end of period.......... $ 12.18 $ 11.27
--------- ---------
Total Return @.......................... 8.05% 14.35%
Net assets end of period (000s
omitted)............................ $ 38,762 $ 21,237
Ratio of expenses to average daily net
assets.............................. 1.15%*** 1.14%***
Ratio of net investment income to
average daily net assets............ 3.29%*** 1.41%***
Portfolio turnover rate............... 16% 39%
Average commission rate paid
Diamond............................. $ .0355 --
</TABLE>
* For the six-month period ended June 30, 1996.
** For the Period January 3, 1995 (commencement of operations) to
December 31, 1995. The portfolio's inception was December 14, 1994,
when it was initially capitalized. However, the portfolio's shares did
not become effectively registered under the Securities Act of 1933
until January 3, 1995. Supplementary information is not presented for
the period from December 14, 1994, through January 3, 1995, as the
portfolio's shares were not registered during that period.
*** Annualized.
@ These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions.
Diamond In accordance with new SEC guidelines under the 1934 Act, beginning in
1996 average commission rate during a funds fiscal year must be
disclosed.
82
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6. FINANCIAL HIGHLIGHTS (continued):
Year Ended December
31,
----------------------
AGGRESSIVE GROWTH SERIES 1996* 1995 1994**
<S> <C> <C> <C>
- ------------------------------------------------------------------------------
Net asset value, beginning of
period.............................. $ 12.68 $ 9.80 $ 10.03
--------- --------- ---------
Operations:
Investment income - net............. .02 .07 .08
Net realized and unrealized gains
(losses) on investments............ 1.94 2.88 (.23)
--------- --------- ---------
Total from operations................... 1.96 2.95 (.15)
--------- --------- ---------
Distribution to shareholders:
From investment income - net........ -- (.07) (.08)
--------- --------- ---------
Net asset value, end of period.......... $ 14.64 $ 12.68 $ 9.80
--------- --------- ---------
Total Return @.......................... 15.52% 29.89% (1.89%)
Net assets end of period (000s
omitted)........................... $ 79,894 $ 46,943 $ 13,526
Ratio of expenses to average daily
net assets......................... .75%*** .81% .88%***
Ratio of net investment income to
average daily net assets........... .29%*** .58% 1.24%***
Portfolio turnover rate............. 12% 21% 5%
Average commission rate
paidDiamond........................ $ .0808 -- --
</TABLE>
* For the six-month period ended June 30, 1996.
** For the Period May 2, 1994 (commencement of operations) to December
31, 1994. The portfolio's inception was April 26, 1994, when it was
initially capitalized. However, the portfolio's shares did not become
effectively registered under the Securities Act of 1933 until May 2,
1994. Supplementary information is not presented for the period from
April 26, 1994, through May 2, 1994, as the portfolio's shares were
not registered during that period.
*** Annualized.
@ These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions.
Diamond In accordance with new SEC guidelines under the 1934 Act, beginning in
1996 average commission rate during a funds fiscal year must be
disclosed.
83
<PAGE>
DIRECTORS AND OFFICERS
DIRECTORS Richard W. Cutting CPA AND FINANCIAL CONSULTANT
Allen R. Freedman CHAIRMAN, CHIEF EXECUTIVE OFFICER AND
PRESIDENT, FORTIS, INC. MANAGING
DIRECTOR OF
FORTIS INTERNATIONAL, N.V.
Dr. Robert M. Gavin PRESIDENT, HAVERFORD COLLEGE, PRIOR TO
JULY 1996, PRESIDENT MACALESTER
COLLEGE
Jean L. King PRESIDENT, COMMUNI-KING
Dean C. Kopperud CHIEF EXECUTIVE OFFICER AND DIRECTOR,
FORTIS ADVISERS, INC. PRESIDENT AND
DIRECTOR, FORTIS INVESTORS, INC.
SENIOR VICE PRESIDENT AND DIRECTOR,
FORTIS BENEFITS INSURANCE COMPANY,
SENIOR VICE PRESIDENT AND DIRECTOR,
TIME INSURANCE COMPANY
Edward M. Mahoney PRIOR TO JANUARY, 1995, CHAIRMAN AND
CHIEF EXECUTIVE OFFICER, FORTIS
ADVISERS, INC. AND FORTIS INVESTORS,
INC.
Robb L. Prince FINANCIAL AND EMPLOYEE BENEFIT
CONSULTANT, PRIOR TO JULY, 1995, VICE
PRESIDENT AND TREASURER, JOSTENS,
INC.
Leonard J. Santow PRINCIPAL, GRIGGS & SANTOW, INC.
Joseph M. Wikler INVESTMENT CONSULTANT AND PRIVATE
INVESTOR, PRIOR TO JANUARY, 1994,
DIRECTOR OF RESEARCH, CHIEF
INVESTMENT OFFICER, PRINCIPAL, AND
DIRECTOR, THE ROTHSCHILD CO.
OFFICERS
Dean C. Kopperud
PRESIDENT AND DIRECTOR
Robert W. Beltz, Jr.
VICE PRESIDENT
James S. Byrd
VICE PRESIDENT
Charles J. Dudley
VICE PRESIDENT
Thomas D. Gualdoni
VICE PRESIDENT
Maroun M. Hayek
VICE PRESIDENT
Howard G. Hudson
VICE PRESIDENT
Robert C. Lindberg
VICE PRESIDENT
Larry A. Medin
VICE PRESIDENT
Charles L. Mehlhouse
VICE PRESIDENT
Kevin J. Michels
VICE PRESIDENT
Jon H. Nicholson
VICE PRESIDENT
Fred Obser
VICE PRESIDENT
Dennis M. Ott
VICE PRESIDENT
David A. Peterson
VICE PRESIDENT
Nicholas L. M. de Peyster
VICE PRESIDENT
Stephen M. Poling
VICE PRESIDENT
Stephen M. Rickert
VICE PRESIDENT
Richard P. Roche
VICE PRESIDENT
Anthony J. Rotondi
VICE PRESIDENT
Keith R. Thomson
VICE PRESIDENT
Christopher J. Woods
VICE PRESIDENT
Gary N. Yalen
VICE PRESIDENT
Michael J. Radmer
SECRETARY
Tamara L. Fagely
TREASURER
INVESTMENT MANAGER, REGISTRAR Fortis Advisers, Inc.
AND TRANSFER AGENT BOX 64284, ST. PAUL, MINNESOTA 55164
PRINCIPAL UNDERWRITER Fortis Investors, Inc.
BOX 64284, ST. PAUL, MINNESOTA 55164
CUSTODIAN First Bank National Association
MINNEAPOLIS, MINNESOTA
GENERAL COUNSEL Dorsey & Whitney P.L.L.P.
MINNEAPOLIS, MINNESOTA
INDEPENDENT AUDITORS KPMG Peat Marwick LLP
MINNEAPOLIS, MINNESOTA
The use of this material is authorized only when preceded or accompanied by a
prospectus.
84
<PAGE>
FORTIS FINANCIAL GROUP'S OTHER PRODUCTS AND SERVICES
MUTUAL Fortis Bond Funds MONEY FUND
FUNDS/PORTFOLIOS U.S. GOVERNMENT
CONVENIENT ACCESS TO SECURITIES FUND
A BROAD RANGE OF TAX-FREE MINNESOTA
SECURITIES PORTFOLIO
TAX-FREE NATIONAL
PORTFOLIO
TAX-FREE NEW YORK
PORTFOLIO
HIGH YIELD PORTFOLIO
Fortis Stock Funds ASSET ALLOCATION
PORTFOLIO
VALUE FUND
GROWTH & INCOME FUND
CAPITAL FUND
FIDUCIARY FUND
GLOBAL GROWTH PORTFOLIO
GROWTH FUND
CAPITAL APPRECIATION
PORTFOLIO
FIXED AND VARIABLE Fortis Opportunity Fixed FIXED ACCOUNT
ANNUITIES & Variable Annuity MONEY MARKET SUBACCOUNT
TAX-DEFERRED Masters Variable Annuity U.S. GOVERNMENT
INVESTING SECURITIES SUBACCOUNT
DIVERSIFIED INCOME
SUBACCOUNT
GLOBAL BOND SUBACCOUNT
HIGH YIELD SUBACCOUNT
ASSET ALLOCATION
SUBACCOUNT
GLOBAL ASSET ALLOCATION
SUBACCOUNT
VALUE SUBACCOUNT
GROWTH & INCOME
SUBACCOUNT
S&P 500 INDEX SUBACCOUNT
BLUE CHIP STOCK
SUBACCOUNT
GLOBAL GROWTH SUBACCOUNT
GROWTH STOCK SUBACCOUNT
INTERNATIONAL STOCK
SUBACCOUNT
AGGRESSIVE GROWTH
SUBACCOUNT
Fortune Fixed Annuities SINGLE PREMIUM ANNUITY
FLEXIBLE PREMIUM ANNUITY
Income Annuities GUARANTEED FOR LIFE
GUARANTEED FOR A
SPECIFIED PERIOD
LIFE Wall Street Series FIXED ACCOUNT
INSURANCE PROTECTION Variable Universal Life MONEY MARKET SUBACCOUNT
AND TAX-DEFERRED Insurance U.S. GOVERNMENT
INVESTMENT SECURITIES SUBACCOUNT
OPPORTUNITY DIVERSIFIED INCOME
SUBACCOUNT
GLOBAL BOND SUBACCOUNT
HIGH YIELD SUBACCOUNT
ASSET ALLOCATION
SUBACCOUNT
GLOBAL ASSET ALLOCATION
SUBACCOUNT
VALUE SUBACCOUNT
GROWTH & INCOME
SUBACCOUNT
S&P 500 INDEX SUBACCOUNT
BLUE CHIP STOCK
SUBACCOUNT
GLOBAL GROWTH SUBACCOUNT
GROWTH STOCK SUBACCOUNT
INTERNATIONAL STOCK
SUBACCOUNT
AGGRESSIVE GROWTH
SUBACCOUNT
Adaptable Life
Universal Life
FORTIS FINANCIAL GROUP manages and distributes mutual funds, annuities and life
insurance products. The mutual funds, variable life and variable annuity
products are distributed through FORTIS INVESTORS, INC. and managed by FORTIS
ADVISERS, INC. The insurance products are issued by FORTIS BENEFITS INSURANCE
COMPANY, FIRST FORTIS LIFE INSURANCE COMPANY and TIME INSURANCE COMPANY.
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.
<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 nationwide reputation for money management. Through Fortis
Investors, Inc., FFG offers mutual funds, annuities, and life insurance. Life
insurance products are issued and underwritten by Fortis Benefits Insurance
Company and Time Insurance Company. FFG is part of Fortis, Inc., a financial
services company that owns or manages approximately $11 billion* in assets.
Fortis, Inc. is
part of Fortis,
a worldwide [LOGO]
group of
companies
active in the fields of insurance, banking and investments with assets in
excess of $160 billion.* Fortis is jointly owned by Fortis AMEV of The
Netherlands and Fortis AG of Belgium.
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.
*Assets as of 12/31/95
[LOGO] FOR MORE INFORMATION, CALL YOUR INVESTMENT REPRESENTATIVE OR FORTIS AT
(800) 800-2638.
[LOGO] -----------------
Bulk Rate
Fortis Financial Group U.S. Postage
P.O. Box 64284 PAID
St. Paul, MN55164 Permit No. 3794
Minneapolis, MN
-----------------
Fortis Series Fund, Inc.
[LOGO] Printed on recycled paper with
40% preconsumer waste and 10%
post consumer waste. Please recycle.
[LOGO] and Fortis-Registered Trademark- are registered servicemarks
of Fortis AMEV and Fortis AG.
59749 (8/96)
