<PAGE>
[LOGO]
SOLID ANSWERS FOR A CHANGING WORLD-REGISTERED TRADEMARK-
[PHOTO]
Annual Report December 31, 1995
[PHOTO] [PHOTO] [PHOTO]
Representing the portfolios of:
- - Masters Variable Annuity
- - Opportunity Fixed & Variable Annuity
- - Wall Street Series VUL 100, 220, & 500
<PAGE>
FORTIS SERIES FUND, INC.
ANNUAL REPORT
- --------------------------------------------------------------------------------
HIGHLIGHTS
<TABLE>
<CAPTION>
U.S.
MONEY GOVERNMENT DIVERSIFIED GLOBAL HIGH ASSET
MARKET SECURITIES INCOME BOND YIELD ALLOCATION
SERIES SERIES SERIES SERIES SERIES SERIES
------ ---------- ----------- ------ ------ ----------
<S> <C> <C> <C> <C> <C> <C>
FOR THE PERIOD ENDED DECEMBER 31, 1995:
NET ASSET VALUE PER SHARE:
Beginning of period............................. $10.63 $ 9.40 $10.40 $10.00 $ 9.47 $13.56
End of period................................... $10.83 $11.16 $12.20 $11.30 $ 9.74 $15.90
ACCUMULATION UNIT PERFORMANCE:
Fortis Opportunity Annuity/ Masters Variable
Annuity......................................... +4.31 % +17.22% +15.72% +17.43% +11.26% +20.35%
Harmony Investment Life......................... +4.94 % +17.92% +16.41% +18.13% +11.93% +21.07%
Wall Street Series 220/500...................... +4.50 % +17.43% +15.92% +17.64% +11.46% +20.56%
</TABLE>
<TABLE>
<CAPTION>
GLOBAL
ASSET GROWTH GLOBAL GROWTH INTERNATIONAL AGGRESSIVE
ALLOCATION & INCOME GROWTH STOCK STOCK GROWTH
SERIES SERIES SERIES SERIES SERIES SERIES
---------- -------- ------ ------ ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE PER SHARE:
Beginning of period............................. $10.00 $10.07 $12.31 $22.11 $10.00 $ 9.80
End of period................................... $11.42 $12.83 $15.97 $28.09 $11.27 $12.68
ACCUMULATION UNIT PERFORMANCE:
Fortis Opportunity Annuity/ Masters Variable
Annuity......................................... +15.90% +27.98% +28.74% +25.96% +12.83% +28.15%
Harmony Investment Life......................... +16.59% +28.74% +29.52% +26.72% +13.52% +28.92%
Wall Street Series 220/500...................... +16.11% +28.20% +28.97% +26.18% +13.05% +28.38%
</TABLE>
- --------------------------------------------------------------------------------
OPERATING EXPENSES:*
<TABLE>
<CAPTION>
U.S.
MONEY GOVERNMENT DIVERSIFIED GLOBAL HIGH ASSET
MARKET SECURITIES INCOME BOND YIELD ALLOCATION
SERIES SERIES SERIES SERIES SERIES SERIES
------ ---------- ----------- ------ ------ ----------
<S> <C> <C> <C> <C> <C> <C>
FOR THE PERIOD ENDED DECEMBER 31, 1995:
Investment Advisory and Management Fee............ .30% .46% .47% .75% .50% .49%
Other Expenses.................................... .10% .07% .08% .53% .13% .06%
------ --- --- ------ ------ ---
Total Fortis Series Operating Expenses............ .40% .53% .55% 1.28% .63% .55%
------ --- --- ------ ------ ---
</TABLE>
<TABLE>
<CAPTION>
GLOBAL
ASSET GROWTH & GLOBAL GROWTH INTERNATIONAL AGGRESSIVE
ALLOCATION INCOME GROWTH STOCK STOCK GROWTH
SERIES SERIES SERIES SERIES SERIES SERIES
---------- -------- ------ ------ ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
Investment Advisory and Management Fee............ .90% .70% .70% .62% .85% .70%
Other Expenses.................................... .38% .10% .10% .05% .29% .11%
----- --- ------ ------ ----- ---
Total Fortis Series Operating Expenses............ 1.28% .80% .80% .67% 1.14% .81%
----- --- ------ ------ ----- ---
</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.
----------------------------------------------------------------------
<TABLE>
<S> <C>
CONTENTS
Products and Services 2
Letter to Shareholders 3
Schedules of Investments
Money Market Series 15
U.S. Government Securities Series 16
Diversified Income Series 19
Global Bond Series 23
High Yield Series 25
Asset Allocation Series 29
Global Asset Allocation Series 35
Growth & Income Series 39
Global Growth Series 42
Growth Stock Series 45
International Stock Series 48
Aggressive Growth Series 51
Statements of Assets and Liabilities 54
Statements of Operations 56
Statements of Changes in Net Assets 58
Notes to Financial Statements 60
Independent Auditors' Report 71
Directors and Officers 72
</TABLE>
1
<PAGE>
FORTIS FINANCIAL GROUP'S OTHER PRODUCTS AND SERVICES
MUTUAL FUNDS/PORTFOLIOS
CONVENIENT ACCESS TO A BROAD RANGE OF SECURITIES
Fortis Bond Funds
FORTIS MONEY FUND
FORTIS U.S. GOVERNMENT SECURITIES FUND
FORTIS GOVERNMENT TOTAL RETURN PORTFOLIO
FORTIS TAX-FREE MINNESOTA PORTFOLIO
FORTIS TAX-FREE NATIONAL PORTFOLIO
FORTIS TAX-FREE NEW YORK PORTFOLIO
FORTIS HIGH YIELD PORTFOLIO
Fortis Stock Funds
FORTIS ASSET ALLOCATION PORTFOLIO
FORTIS CAPITAL FUND
FORTIS FIDUCIARY FUND
FORTIS GROWTH FUND
FORTIS CAPITAL APPRECIATION PORTFOLIO
FORTIS GLOBAL GROWTH PORTFOLIO
FIXED AND VARIABLE ANNUITIES
TAX-DEFERRED INVESTING
Fortis Opportunity Fixed &
Variable Annuity
Masters Variable Annuity
FIXED ACCOUNT
MONEY MARKET
U.S. GOVERNMENT SECURITIES
DIVERSIFIED INCOME
GLOBAL BOND
HIGH YIELD
ASSET ALLOCATION
GLOBAL ASSET ALLOCATION
GROWTH & INCOME
GLOBAL GROWTH
GROWTH STOCK
INTERNATIONAL STOCK
AGGRESSIVE GROWTH
Fortune Fixed Annuities
SINGLE PREMIUM ANNUITY
FLEXIBLE PREMIUM ANNUITY
Income Annuities
GUARANTEED FOR LIFE
GUARANTEED FOR A SPECIFIC PERIOD
VARIABLE UNIVERSAL LIFE
INSURANCE PROTECTION AND TAX-DEFERRED INVESTMENT OPPORTUNITY
Wall Street Series VUL 100, 220 & 500, Harmony
FIXED ACCOUNT
MONEY MARKET
U.S. GOVERNMENT SECURITIES
DIVERSIFIED INCOME
GLOBAL BOND
HIGH YIELD
ASSET ALLOCATION
GLOBAL ASSET ALLOCATION
GROWTH & INCOME
GROWTH STOCK
GLOBAL GROWTH
INTERNATIONAL STOCK
AGGRESSIVE GROWTH
Adaptable Life
Universal Life
[FORTIS LOGO
THE 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 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.
2
<PAGE>
FORTIS SERIES FUND, INC. ANNUAL REPORT,
DECEMBER 31, 1995
DEAR SHAREHOLDER,
We're pleased to present the Fortis Series Fund, Inc. annual report for the
period ended December 31, 1995.
ECONOMIC REVIEW AND INVESTMENT STRATEGIES
Calendar year 1995 will go down as one of the best performance years in history
for financial assets. Lower long-term interest rates in the United States was
the key driving force in the strong returns generated in many of the world's
fixed income and equity markets. Moderate economic growth worldwide and a benign
rate of global inflation allowed the bond market to rally strongly during the
year. Equity markets were further supported by strong corporate earnings and by
increased activity in the merger and acquisition area in the United States.
While the outlook for 1996 remains uncertain, we are optimistic that many of the
positive trends from 1995 could carry forward into the present calendar year.
On the fixed income side, markets have performed well. During 1995, longer-term
rates declined about 2 percent. The rally in bond prices was caused by signs of
an economic slowdown combined with subdued inflation. The Federal Reserve
confirmed the bond market's recognition of a slowdown by lowering short-term
rates in July and again in December.
Recently, the consumer is showing some signs of spending fatigue, as indicated
by reports from major retailers of poor holiday results, after generally small
gains all year. In addition, job growth has been limited, jobless claims have
drifted higher, help wanted advertising has declined, and in, general, people
feel the job market is tight.
These developments point to the likelihood that economic expansion will
continue, but will probably lose rather than gain momentum as we move into 1996.
In this environment, with inflation stable or decreasing, it is likely that
monetary policy will be more accommodative; perhaps lowering the federal funds'
rate again in the first or second quarter. Meanwhile, near term economic
activity will be only nominally impacted by the outcome of current budget
compromise efforts.
In our view, this economic background has been and continues to be very
favorable for fixed income markets. As long as productivity continues to rise
and wage increases remain minor, inflation should stay below 3 percent.
[PHOTO]
[PHOTO]
[PHOTO]
3
<PAGE>
MONEY MARKET SERIES
In the last quarter of 1995, the average maturity of this portfolio was
lengthened from an average of about thirty days to more than fifty days. The
increase in the average maturity of the portfolio was made to better position
the fund for a declining short-term rate environment.
Despite two federal funds target reductions, the yield on this portfolio has
remained quite stable at about 5.50%. However, we anticipate further easing by
the Federal Reserve to produce lower short-term rates and cause this portfolio
to yield somewhat less in the new year.
Our long-term policy in this portfolio continues to emphasize safety, quality
and liquidity. The fund's investments are drawn from an approved list of
carefully researched firms that operate in diverse industries. The fund is
currently 100% invested in First Tier securities.
U.S. GOVERNMENT SECURITIES SERIES
The changes within this portfolio during the last six months reflect our
positive outlook for fixed income markets. We extended the portfolio duration
from 4.75 years at midyear to 5.5 years where it was sustained through year-end.
The duration extension was accomplished through the reduction of mortgage backed
securities and callable investment grade corporate bonds which we replaced with
non-callable treasury notes and bonds. The effect on the portfolio was to
improve overall quality and position it to respond more favorably to lower
interest rates.
U.S. GOVERNMENT SECURITIES SERIES
Value of $10,000 invested on March 24, 1987
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
U.S. GOVERNMENT SECURITIES SERIES
AVERAGE ANNUAL TOTAL RETURN*
<S> <C> <C>
Since March 24,
1 Year 5 Year 1987**
+18.78% +8.10% +7.69%
Lehman Brothers
Intermediate Gov't U.S. Government
Index*** Securities Series
03/24/87 10,000 10,000
87 10,240 9,994
88 10,895 10,630
89 12,277 12,027
90 13,450 12,981
91 15,348 14,845
92 16,411 15,756
93 17,751 17,245
94 17,464 16,135
95 19,996 19,166
</TABLE>
Annual period ended December 31
Past performance is not indicative of future performance. Investment
return and principal value will fluctuate so that shares, when redeemed,
may be worth more or less than their original cost. 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.
U.S. GOVERNMENT SECURITIES SERIES
TOP TEN HOLDINGS AS OF 12/31/95
<TABLE>
<CAPTION>
Percent of
Bonds Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. U.S. Treasury Bond (8.125%) 2021 9.0%
2. FHLB Note (7.31%) 2004 9.0%
3. FHLB Global Note (6.125%) 1996 6.0%
4. FNMA (7.00%) 2025 5.6%
5. DLJ Mtg Acceptance Corp. (8.50%) 2001 5.0%
6. Nomura Asset Securities Corp. (6.68%) 2003 4.4%
7. U.S. Treasury Bond (7.625%) 2025 4.1%
8. FNMA Global Note (6.85%) 2000 4.0%
9. FNMA Global Note (7.40%) 2004 3.6%
10. Green Tree Financial Corp. (7.65%) 2019 3.0%
</TABLE>
MONEY MARKET SERIES
PORTFOLIO COMPOSITION BY INDUSTRY AS OF 12/31/95
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Consumer Finance 21.0%
Banks 17.6%
Diversified Finance 16.4%
Captive Equipment Finance 12.9%
Utilities - Electric 9.0%
Captive Auto Finance 5.7%
Beverage 4.7%
Tobacco 4.5%
Industrial 4.3%
Captive Oil Finance 2.9%
Other 1.0%
</TABLE>
U.S. GOVERNMENT SECURITIES SERIES
PORTFOLIO COMPOSITION BY INDUSTRY
AS OF 12/31/95
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
FNMAs 24.8%
U.S. Treasury Securities 19.5%
Other Direct Federal Obligations 15.0%
Manufactured Homes 9.3%
GNMAs 8.3%
Asset Backed Commercial Loans 7.2%
Asset Backed Multi-Family Loans 6.3%
Other 3.2%
Cash Equivalents/Receivables 2.7%
Waste Disposal 2.1%
Other Government Agencies 1.6%
</TABLE>
4
<PAGE>
DIVERSIFIED INCOME SERIES
Changes in this portfolio's structure are consistent with our overall investment
strategy. The duration was lengthened during the year in anticipation of lower
rates and was 5.1 years at the close of 1995. This duration helped the portfolio
participate in the recent bond rally. The most significant change in this
portfolio was an increase in commitment to investment grade corporate bonds.
This sector was more than tripled to the current 16.6 percent of assets.
Investment grade securities performed well in 1995 as the incremental yield over
comparable treasury securities or "spread" lessened. We also lowered the
commitment to the noninvestment grade sector from nearly 21 percent at the
beginning of the year to 16.9 percent at the end. The net result of these
portfolio moves is a portfolio with higher credit quality and better liquidity.
DIVERSIFIED INCOME SERIES
Value of $10,000 invested on May 2, 1988
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
DIVERSIFIED INCOME SERIES
AVERAGE ANNUAL TOTAL RETURN*
<S> <C> <C>
Since
1 Year 5 Year May 2, 1988**
+17.26% +9.00% +9.14%
Lehman Brothers
Aggregate Diversified Income
Bond Index** Series
05/02/88 10,000 10,000
88 10,454 10,390
89 11,973 11,668
90 13,046 12,704
91 15,133 14,567
92 16,254 15,598
93 17,838 17,588
94 17,333 16,670
95 20,535 19,548
</TABLE>
Annual period ended December 31
Past performance is not indicative of future performance. Investment
return and principal value will fluctuate so that shares, when redeemed,
may be worth more or less than their original cost. 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.
DIVERSIFIED INCOME SERIES
PORTFOLIO COMPOSITION BY INDUSTRY AS OF 12/31/95
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 27.9%
FNMAs 17.9%
U.S. Treasury Securities 13.0%
GNMAs 9.8%
Manufactured Homes 7.1%
Banks 5.3%
Other Direct Federal Obligations 5.2%
Asset Backed Commercial Loans 4.4%
Cash Equivalents/Receivables 3.4%
Foreign - Government Agencies 3.1%
Miscellaneous 2.9%
</TABLE>
DIVERSIFIED INCOME SERIES
TOP TEN HOLDINGS AS OF 12/31/95
<TABLE>
<CAPTION>
Percent of
Bonds Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. U.S. Treasury Bond (8.125%) 2021 7.9%
2. FNMA (7.00%) 2025 4.7%
3. FHLB Note (7.31%) 2004 4.5%
4. GNMA (9.00%) 2020 3.9%
5. Hydro-Quebec (8.05%) 2024 3.1%
6. FNMA Note (7.40%) 2004 3.0%
7. FNMA Remic (7.00%) 2020 2.8%
8. U.S. Treasury Note (9.375%) 1996 2.8%
9. Nationsbank Corp. (7.75%) 2015 2.5%
10. Oakwood Mortgage Investors, Inc. (7.10%) 2020 2.4%
</TABLE>
5
<PAGE>
MERCURY ASSET MANAGEMENT
GLOBAL BOND SERIES
Over the year, the portfolio fully participated in the what was generally a
positive environment for the global bond markets. The portfolio's performance
can be attributed to several key decisions:
During the first half of the year, and especially in the first quarter, the
portfolio maintained significant exposure to the Japanese bond market and
currency. This stance was changed in the latter half of the year when all
Japanese security holdings (except for a currency contract) were eliminated.
The portfolio remained generally overweight in the European bond markets with
particular concentration in the Deutschemark-bloc markets of Germany, Denmark
and the Netherlands. The higher yielding, lower quality European markets were
either underweighted or shunned altogether.
Over the year, the portfolio's U.S. bond exposure was gradually reduced from a
modestly overweight stance to a modestly underweight stance. On balance, this
neither added to nor detracted from the portfolio's performance relative to
benchmark.
The portfolio utilizes forward currency contracts to manage foreign currency
exposure. During the year, through the use of forward contracts, the portfolio
hedged a portion of its assets back into the U.S. dollar. This added to relative
performance as the U.S. dollar strengthened in the latter part of the year.
The portfolio's structure finished the year anticipating further interest rate
reductions in Europe, upward pressure on interest rates in Japan and a stronger
U.S. dollar.
GLOBAL BOND SERIES
Value of $10,000 invested on January 3, 1995
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GLOBAL BOND SERIES
AVERAGE ANNUAL TOTAL RETURN*
<S> <C> <C>
Since
January 3, 1995**
+19.02%
Salomon Bros World
Gov't Bond Index*** Global Bond Series
01/3/95 10,000 10,000
12/31/95 11,972 11,902
</TABLE>
Annual period ended December 31
Past performance is not indicative of future performance. Investment
return and principal value will fluctuate so that shares, when redeemed,
may be worth more or less than their original cost. 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.
GLOBAL BOND SERIES
PORTFOLIO DIVERSIFICATION BY COUNTRY AS OF 12/31/95
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
United States 33.2%
Germany 28.6%
France 10.5%
United Kingdom 9.2%
Denmark 8.8%
Japan 4.6%
Cash Equivalents/Receivables 4.0%
Netherlands 1.1%
</TABLE>
GLOBAL BOND SERIES
TOP TEN HOLDINGS AS OF 12/31/95
<TABLE>
<CAPTION>
Percent of
Bonds Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Kreditanstalt Fuer Wiederaufbau (7.50%) 2000
(Germany) 8.7%
2. United Kingdom Treasury (8.00%) 2000 7.4%
3. U.S. Treasury Note (7.75%) 2000 7.3%
4. U.S. Treasury Note (5.25%) 1998 6.8%
5. German Government (8.375%) 2001 6.1%
6. General Electric Capital Corp. (8.125%) 2007 5.7%
7. U.S. Treasury Bond (8.875%) 2017 5.2%
8. Deutsche Ausgleichsbank (6.375%) 2002 (Germany) 4.8%
9. Landeskreditbank Baden-Wurttemberg (6.625%) 2003
(Germany) 4.7%
10. Export-Import Bank of Japan (5.875%) 2003 4.6%
</TABLE>
6
<PAGE>
HIGH YIELD SERIES
Over the past year, the high yield bond market kept pace with the strong rallies
in government and high grade corporate bonds, but did not significantly
outperform those sectors as in the previous three and a half years. Despite the
low to moderate growth demonstrated by the U.S. economy, credit quality within
the high yield bond universe has actually declined slightly during the last 12
months. We believe this negative trend is due to the large number of
lower-quality bonds issued two to three years ago by companies whose prospects
have not mirrored the improvements in the economy. Our current outlook on the
high yield bond market remains cautious.
The High Yield Series delivered disappointing returns during the last 12 months
due to its exposure to retail, consumer goods and gaming companies that did not
perform well because of weaknesses in consumer spending and/or extremely
competitive environments.
In August, we began to reposition the portfolio by improving its overall credit
quality, increasing its trading liquidity, and, most importantly, focusing on
sectors such as telecommunication and broadcasting, which we believe will
exhibit good momentum through 1996. In the last three months of the year, the
portfolio's performance improved relative to other high yield funds, and we now
feel the portfolio is in a better position to deliver good relative performance
in the coming years.
HIGH YIELD SERIES
Value of $10,000 invested on May 2, 1994
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
HIGH YIELD SERIES
AVERAGE ANNUAL TOTAL RETURN*
<S> <C> <C>
Since
1 Year May 2, 1994**
+12.73% +6.97%
Lehman Brothers
High Yield Index*** High Yield Series
05/2/94 10,000 10,000
12/31/94 10,165 9,925
12/31/95 12,150 11,189
</TABLE>
Annual period ended December 31
Past performance is not indicative of future performance. Investment
return and principal value will fluctuate so that shares, when redeemed,
may be worth more or less than their original cost. 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.
HIGH YIELD SERIES
PORTFOLIO COMPOSITION BY INDUSTRY AS OF 12/31/95
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 28.2%
Cable Television 13.4%
Leisure Time-Amusements 13.1%
Telecommunications 10.2%
Retail-Grocery 7.7%
Cash Equivalents/Receivables 7.2%
Broadcasting 5.3%
Metals-Mining and Miscellaneous 3.9%
Chemicals 3.8%
Hotel and Motel 3.7%
Housing 3.5%
</TABLE>
HIGH YIELD SERIES
TOP TEN HOLDINGS AS OF 12/31/95
<TABLE>
<CAPTION>
Percent of
Bonds Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Videotron Holdings plc (11.67%) 2000 2.2%
2. American Communications Services, Inc. (13.00%)
2005 (and warrants) 2.0%
3. Paging Network, Inc. (10.125%) 2007 1.9%
4. Renco Metals, Inc. (12.00%) 2000 1.9%
5. Thrifty Payless, Inc. (12.25%) 2004 1.9%
6. LaRoche Industries, Inc. (13.00%) 2004 1.9%
7. Abbey Healthcare Group (9.50%) 2002 1.9%
8. Computervision Corp. (11.375%) 1999 1.9%
9. Dominick's Finer Foods, Inc. (10.875%) 2005 1.9%
10. Comcast Corp. (9.375%) 2005 1.9%
</TABLE>
7
<PAGE>
ASSET ALLOCATION SERIES
During early November, the allocation mix of this series changed from 50/50
(stocks/bonds) to 45/55 (stock/bonds).
The equity portion of this series has benefited from the general rise of the
equity markets. The portfolio is diversified in various economic sectors with a
focus on larger-capitalized growth companies with dominant market positions.
These larger companies should continue to prosper in a favorable market
environment, especially during periods of slower corporate earnings growth.
In the bond portion, the duration was lengthened from five years at the
beginning of 1995 to the current 5.2 years. This was done in anticipation of
lower rates, especially after rates backed-up midyear. Additionally, we more
than tripled our exposure to the investment grade corporate bond sector and
lessened the holdings in high yield securities from nearly 12 percent at the
beginning of the year to its year-end exposure of less than 7 percent.
ASSET ALLOCATION SERIES
Value of $10,000 invested on May 1, 1987
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
ASSET ALLOCATION SERIES
AVERAGE ANNUAL TOTAL RETURN*
<S> <C> <C> <C>
Since
1 Year 5 Year May 1, 1987**
+21.97% +12.75% +9.80%
Lehman Brothers Asset Allocation
Aggregate Bond Index
+ S&P 500 ++ Series
05/01/87 10,000 10,000 10,000
87 10,393 8,750 9,426
88 11,213 10,221 9,776
89 12,842 13,440 12,097
90 13,993 13,013 12,341
91 16,232 16,989 15,752
92 17,434 18,291 16,847
93 19,133 20,119 18,496
94 18,591 20,382 18,439
95 22,026 28,026 22,490
</TABLE>
Annual period ended December 31
Past performance is not indicative of future performance. Investment
return and principal value will fluctuate so that shares, when redeemed,
may be worth more or less than their original cost. 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.
ASSET ALLOCATION SERIES
PORTFOLIO ALLOCATION AS OF 12/31/95
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C> <C> <C> <C>
Bonds 49.6%
Equity Securities 45.6%
Cash Equivalents/Receivables 4.8%
</TABLE>
ASSET ALLOCATION SERIES
TOP HOLDINGS AS OF 12/31/95
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. First Data Corp. 2.1%
2. 3Com Corp. 2.0%
3. Oracle Corp. 1.5%
4. Green Tree Financial Corp. 1.4%
5. Cisco Systems, Inc. 1.3%
<CAPTION>
Bonds
- -------------------------------------------------------------------
<C> <S> <C>
1. Browning-Ferris, Inc. (7.40%) 2035 2.1%
2. Hydro-Quebec (8.05%) 2024 2.0%
3. Oakwood Mortgage Investors, Inc. (7.10%) 2020 2.0%
4. FNMA (7.00%) 2025 1.8%
5. FNMA (7.25%) 2005 1.8%
</TABLE>
PORTFOLIO CHANGES FOR THE
YEAR ENDED 12/31/95
STOCK ADDITIONS:
Adobe Systems, Inc.
Bay Networks, Inc.
Boston Scientific Corp.
Ceridian Corp.
Computer Associates International, Inc.
Disney (Walt) Co.
Micron Technology, Inc.
Oxford Health Plans, Inc.
Solectron Corp.
Tellabs, Inc.
STOCK ELIMINATIONS:
ALC Communications Corp.
Brinker International, Inc.
First Financial Management Corp.
General Instrument Corp.
Lotus Development Corp.
Sensormatic Electronics Corp.
Telephone & Data Systems, Inc.
Toys 'R' Us, Inc.
Value Health, Inc.
Viacom, Inc. Non-Voting
WMX Technologies, Inc.
8
<PAGE>
MORGAN STANLEY ASSET MANAGEMENT
GLOBAL ASSET ALLOCATION SERIES
In 1995 this portfolio's positive performance lagged that of it's benchmark
indices. This was due to the fact that the portfolio's holdings were not
perfectly aligned with those of the indices.
As 1995 came to a close, both bond and equity markets seemingly concluded that
the world economy is in for a substantial period of low growth, with
inflationary pressures well contained at all stages of the so called economic
cycle. Evidence supporting this conclusion comes in different forms from the
three major economic blocs of the developed world.
In the U.S., there appears to be a hesitant recovery from the mid-cycle
inventory correction the economy experienced earlier in the year. In Europe, the
export led recovery appears to have come to an abrupt halt and a sharp increase
in inventories will weaken the continent's economies in the quarters ahead.
Meanwhile, the recovery to date has done little to dent the high levels of
unemployment in Europe attributable to the region's inflexible labor markets.
Finally, in Japan, an economic recovery is developing. This is a result of
currency depreciation, debt financed growth in government spending and an
extraordinarily loose monetary policy pursued by the Bank of Japan, which is
intent on reliquifying the country's ailing banking system. Despite these
inflationary measures, pressures remain minimal.
We conclude that world markets will be confronted in the year ahead by different
factors in different regions. The United States is looking vulnerable from the
viewpoint of equity valuations given that core earnings growth is already
slowing sharply. Japan looks attractive in the short term, but Japanese equities
should not price off the current level of Japanese bond yields, which are
unsustainably low. As for bond markets elsewhere, there is no room for
disappointment on the inflation front.
GLOBAL ASSET ALLOCATION SERIES
Value of $10,000 invested on January 3, 1995
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GLOBAL ASSET ALLOCATION SERIES
AVERAGE ANNUAL TOTAL RETURNS*
<S> <C> <C> <C>
Since
January 3, 1995**
+17.47%
Salomon Brothers
World Global Asset
Gov't Bond Index++ MSCI World Index + Allocation Series
01/3/95 10,000 10,000 10,000
12/31/95 11,972 12,132 11,747
</TABLE>
Annual period ended December 31
Past performance is not indicative of future performance. Investment
return and principal value will fluctuate so that shares, when redeemed,
may be worth more or less than their original cost. 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.
GLOBAL ASSET ALLOCATION SERIES
PORTFOLIO ALLOCATION AS OF 12/31/95
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Equity Securities 40.9%
Bonds 35.7%
Cash Equivalents/Receivables 23.4%
</TABLE>
GLOBAL ASSET ALLOCATION SERIES
TOP TEN HOLDINGS AS OF 12/31/95
<TABLE>
<CAPTION>
Percent of
Bonds Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. U.S. Treasury Note (7.25%) 2004 3.6%
2. U.S. Treasury Note (6.25%) 2000 3.3%
3. United Kingdom Treasury (7.00%) 2001 2.3%
4. U.S. Treasury Note (7.875%) 2004 2.3%
5. French Treasury Bill (7.75%) 2000 2.2%
6. Spanish Government (10.30%) 2002 2.1%
7. German Unity Fund (8.00%) 2002 2.0%
8. Treuhandanstalt (6.75%) 2004 1.8%
9. German Government (6.50%) 2003 1.8%
10. Swedish Government (10.25%) 2000 1.6%
</TABLE>
9
<PAGE>
GROWTH AND INCOME SERIES
The Growth and Income Series focuses on dividend-paying companies with solid
earnings growth potential. We seek companies that can grow their dividend stream
over the longer term, yet provide shareholders with a reasonable current yield
relative to the Standard and Poor's 500 Stock Index. The goal is to provide a
total return that will be competitive with the general stock market over the
longer term. The portfolio is highly diversified with exposure to numerous
industries, including financial services, healthcare and companies involved in
basic sectors, such as chemicals, telephone utilities and energy.
In 1995 the portfolio's performance was commendable, but lagged the performance
of it's benchmark index. This was due to the relative performance of their
respective holdings and the various industries involved.
GROWTH AND INCOME SERIES
Value of $10,000 invested on May 2, 1994
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GROWTH & INCOME
S&P 500*** SERIES
<S> <C> <C>
05/02/94 10,000 10,000
12/31/94 10,397 10,174
12/31/95 14,297 13,196
Growth & Income Series
Average Annual Total Return*
Since
1 Year May 2, 1994**
+29.70% +18.09%
</TABLE>
Annual period ended December 31
Past performance is not indicative of future performance. Investment
return and principal value will fluctuate so that shares, when redeemed,
may be worth more or less than their original cost. 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.
GROWTH & INCOME SERIES
PORTFOLIO COMPOSITION BY INDUSTRY AS OF 12/31/95
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 34.5%
Cash Equivalents/Receivables 11.9%
Drugs 10.3%
Finance Companies 10.0%
Utilities - Telephone 7.9%
Machinery - Oil and Well 5.4%
Oil - Crude Petroleum and Gas 5.2%
Natural Gas Transmissions 3.9%
Publishing 3.8%
Chemicals 3.7%
Miscellaneous 3.4%
</TABLE>
GROWTH AND INCOME SERIES
TOP TEN HOLDINGS AS OF 12/31/95
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Williams Companies, Inc. 2.3%
2. Federal National Mortgage Association 2.3%
3. U.S. HealthCare, Inc. 2.2%
4. Household International, Inc. 2.2%
5. Telecom Corp. of New Zealand Ltd. ADR 2.1%
6. American Home Products Corp. 2.1%
7. Mercury Finance Co. 2.1%
8. Ethyl Corp. 2.0%
9. Sonat, Inc. 2.0%
10. McGraw-Hill Companies, Inc. 2.0%
</TABLE>
PORTFOLIO CHANGES FOR THE
YEAR ENDED 12/31/95
ADDITIONS:
American Home Products Corp.
El Paso Natural Gas Co.
Frontier Corp.
Genuine Parts Co.
GTE Corp.
Lilly (Eli) & Co., Inc.
New England Business Service, Inc.
Snap-On, Inc.
U.S. HealthCare, Inc.
Williams Companies, Inc.
ELIMINATIONS:
Crompton and Knowles Corp.
Hanson PLC
Hong Kong Telecommunications Ltd. ADR
Kellwood Co.
Louisiana Land & Exploration Co.
Lubrizol Corp.
McDermott International, Inc.
National Data Corp.
Petrolite Corp.
Rochester Telephone Corp.
TJX Companies, Inc.
UST, Inc.
WMX Technologies Inc.
10
<PAGE>
GLOBAL GROWTH SERIES
As a global portfolio, the Global Growth Series has the flexibility to invest in
a variety of stock markets around the world, including the United States. This
is a highly diversified portfolio with holdings in 25 different nations. Our
investment focus is on companies with strong market positions and superior
growth prospects relative to the respective local economy.
When researching potential investments, we look for companies with strong
management, a growth strategy, healthy balance sheets to finance future growth
and an ability to dominate its market or industry niche. We have found that
companies with these characteristics can achieve superior returns on their
investments and above average returns for shareholders. Global Growth Series'
performance over the past year can be attributed to favorable stock selection
and an improved environment for growth-oriented investments.
The long-term outlook for global growth investment remains favorable. The trends
toward greater globalization in areas such as communication, business and
investments will likely continue to proliferate and companies with strong market
positions in rapidly growing industries will likely prosper. With a global
approach to growth investing, we are able to expose the investor to the world's
most dynamic growth segments, while providing greater diversification that can
help reduce the volatility traditionally associated with growth stock investing.
GLOBAL GROWTH SERIES
Value of $10,000 invested on May 1, 1992
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GLOBAL GROWTH
MSCI WORLD INDEX*** PORTFOLIO
<S> <C> <C>
05/01/92 10,000 10,000
92 10,236 11,088
93 12,613 13,075
94 13,317 12,685
95 16,156 16,553
Global Growth Series
Average Annual Total Return*
Since
1 Year May 1, 1992**
+30.49% +14.73%
</TABLE>
Annual period ended December 31
Past performance is not indicative of future performance. Investment
return and principal value will fluctuate so that shares, when redeemed,
may be worth more or less than their original cost. 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.
GLOBAL GROWTH SERIES
PORTFOLIO DIVERSIFICATION BY COUNTRY AS OF 12/31/95
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
United States 49.6%
Other 13.5%
Japan 7.0%
Germany 6.8%
United Kingdom 5.5%
Netherlands 4.2%
Sweden 4.1%
Italy 3.5%
France 2.9%
Finland 2.8%
Cash Equivalents/Receivables 0.1%
</TABLE>
GLOBAL GROWTH SERIES
TOP TEN HOLDINGS AS OF 12/31/95
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. SAP AG Systeme Preferred (Germany) 4.6%
2. Gartner Group, Inc. Class A (US) 3.7%
3. Nokia (AB) K Shares (Finland) 2.8%
4. SGL Carbon AG (Germany) 2.1%
5. Anixter International, Inc. (US) 2.0%
6. 3Com Corp. (US) 2.0%
7. Randstad Holdings NV (Netherlands) 2.0%
8. Dixons Group plc (United Kingdom) 1.8%
9. Fila Holdings S.p.A. ADR (Italy) 1.8%
10. Input/Output, Inc. (US) 1.8%
</TABLE>
PORTFOLIO CHANGES FOR THE
YEAR ENDED 12/31/95
ADDITIONS:
American Oncology Resources, Inc.
Anixter International, Inc.
Avant! Corp.
Bangkok Bank Co. Ltd.
Barco NV
Bed, Bath & Beyond, Inc.
Buenos Aires Embotelladora S.A. ADR
Canadian National Railway Co.
Cheesecake Factory, Inc.
Credit Acceptance Corp.
Crown Cork and Seal Company, Inc.
De Rigo S.p.A. ADR
Dixons Group plc
First Pacific Co. Ltd.
Gucci Group
HCIA, Inc.
Hoganas Class B
Indian Hotels Co., Ltd. (The)
Iochpe Maxion S.A. ADR
Korea Electric Power Corp.
Matsushita Electric Industrial Co., Ltd. ADR
Megaworld Properties Holding, Inc.
Mercury Interactive Corp.
MOL Magyar Olaj-es Gazipari Rt. GDS
Owen Healthcare, Inc.
P.T. Telekomunikasi Indonesia
Roche Holdings AG, Genusschein NVP
Sanofi SA
Santa Isabel S.A. ADR
Scandinavian Mobility International
Service Corp. International
SGL Carbon AG
Sidel SA
Steris Corp.
Telebras ADR
Tellabs, Inc.
Thorn Lighting Group plc
U.S. Robotics Corp.
Videotron Holdings plc ADR
Viking Office Products, Inc.
Western Atlas, Inc.
WM Data AB Class B
ELIMINATIONS:
Alcatel Cable
Alpine Electronics
Banco Latinoamericano de Exportaciones
Boomtown, Inc.
Brinker International, Inc.
Celcius Industrier Class B
Compania de Telefonos de Chile S.A. ADS Cracker Barrel Old Country Store, Inc.
Cross Timbers Oil Co.
Dairy Farm International Holdings Ltd.
Elsevier NV
Empresa Nacional Electricidad
Forest Laboratories, Inc.
Franklin Quest Co.
Grupo Televisa, S.A. de C.V. ADR
Huaneng Power International, Inc. ADS
International Game Technology
ITEL Corp.
Jusco Co.
Kirby Corp.
KLM KON Luchtvaart
Kwik Fit Holdings
Maculan Holding ORDS
Maculan Holding Vorzueg
Newbridge Networks Corp. Perrigo Co.
Royal PTT Nederland NV
Sembawang Shipyard Ltd.
Shaw Industries, Inc.
SkyWest, Inc.
Stein Mart, Inc.
Swire Pacific Ltd. "A"
Sybase, Inc.
Tele Danmark A/S
Telecom de Argentina ADR
Telefonica de Argentina ADR
TNT Freightways Corp.
Total Co Francaise Petroles "B"
U.S. HealthCare, Inc.
YPF Sociedadanoni ADR
11
<PAGE>
GROWTH STOCK SERIES
The Growth Stock Series focuses on companies with well above average growth in
both revenues and earnings. We generally invest in medium to larger companies
that are well managed and have unique investment characteristics. Important
growth areas of the portfolio include technology, healthcare, financial services
and consumer-related companies with dominant market niches.
Over the past several years, it has become more challenging to find companies
that can sustain extraordinary growth rates in revenues. This is due to a lower
inflationary environment and a lack of pricing power in many industries. With
our focus on high revenue growth, we have been gradually increasing our holdings
in technology-related segments of the economy.
Companies with high growth expectations are involved in areas such as networking
equipment, communication equipment, database software and applications software
for both the internet and client server environments. The common thread among
these segments is that their technology is software-based and is difficult for
competitors to duplicate. While technology can be a somewhat volatile segment of
the market, we continue our efforts to diversify the portfolio in companies that
can achieve our expectations for both revenue and earnings growth over the
longer term.
GROWTH STOCK SERIES
Value of $10,000 invested on March 24, 1987
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
S&P 500*** GROWTH STOCK SERIES
<S> <C> <C>
03/24/87 10,000 10,000
87 8,673 8,639
88 10,131 9,027
89 13,322 12,318
90 12,899 11,937
91 16,840 18,323
92 18,130 18,861
93 19,942 20,518
94 20,203 19,940
95 27,780 25,456
Growth Stock Series
Average Annual Total Return*
Since
1 Year 5 Year March 24, 1987**
+27.66% +16.35% +11.24%
Value of $10,000 invested on March
24, 1987
</TABLE>
Annual period ended December 31
Past performance is not indicative of future performance. Investment
return and principal value will fluctuate so that shares, when redeemed,
may be worth more or less than their original cost. 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.
GROWTH STOCK SERIES
PORTFOLIO COMPOSITION BY INDUSTRY AS OF 12/31/95
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Cash Equivalents/Receivables 17.8%
Telecommunications 16.6%
Computer - Software 16.3%
Other 15.3%
Retail - Miscellaneous 6.6%
Health Care Services 5.9%
Electronic - Controls and Equipment 5.3%
Telephone Services 4.3%
Finance Companies 4.3%
Restaurants and Franchising 3.9%
Electronic - Communication Security 3.7%
</TABLE>
GROWTH STOCK SERIES
TOP TEN HOLDINGS AS OF 12/31/95
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. 3Com Corp. 5.3%
2. Cisco Systems, Inc. 4.2%
3. Oracle Corp. 3.7%
4. Informix Corp. 3.5%
5. Tellabs, Inc. 3.1%
6. Solectron Corp. 2.4%
7. Microsoft Corp. 2.2%
8. WorldCom, Inc. 2.2%
9. Sterling Software, Inc. 2.1%
10. Federal National Mortgage Association 2.0%
</TABLE>
PORTFOLIO CHANGES FOR THE
YEAR ENDED 12/31/95
ADDITIONS:
ADC Telecommunications, Inc.
America Online, Inc.
Andrew Corp.
Ascend Communications, Inc.
Bay Networks, Inc.
Boston Chicken, Inc.
Computer Associates International, Inc.
Cypress Semiconductor Corp.
First Data Corp.
FORE Systems, Inc.
Harrah's Entertainment, Inc.
HBO & Co.
Input/Output, Inc.
LSI Logic Corp.
Medaphis Corp.
Micron Technology, Inc.
Motorola, Inc.
Nokia Corp. Class A ADR
Oxford Health Plans, Inc.
Petroleum Geo-Services A/S ADS
Promus Hotel Corp.
Qualcomm, Inc.
Staples, Inc.
Tommy Hilfiger Corp.
Vencor, Inc.
ELIMINATIONS:
Acclaim Entertainment, Inc.
American Power Conversion Corp.
Brinker International, Inc.
Buffets, Inc.
Centocor, Inc.
Compuware Corp.
Cracker Barrel Old Country Store, Inc.
E M C Corp.
First Financial Management Corp.
Forest Laboratories, Inc.
Grupo Televisa, S.A. de C.V. ADR
International Game Technology
Landmark Graphics Corp.
Newbridge Networks Corp.
Promus Companies, Inc.
Quantum Health Resources, Inc.
Sensormatic Electronics Corp.
Sybase, Inc.
Value Health, Inc.
12
<PAGE>
LAZARD FRERES ASSET MANAGEMENT
INTERNATIONAL STOCK SERIES
International equity markets completed a solid year led by the performance of
undervalued European stocks and strong currencies, and the Japanese equity
market began to rebound as specific valuations looked attractive and companies
began to recognize the need to change internally. Growth remains modest across
the European continent with tame inflation, and the outlook is encouraging as
interest rates may still have room to fall. Governments are now committed to
addressing high budget deficits and structural inefficiencies.
As the European economic environment is showing signs of weakness, companies are
forced to shrink their capital base, lower capacity and cut costs to increase or
maintain margins. These actions, which U.S. companies were compelled to take
early on, are now being mirrored by much of Europe.
Elsewhere, equity markets in Singapore and Malaysia were mostly stagnant, yet
stocks continue to trade at high valuations. We maintain a low exposure to Hong
Kong where political uncertainty relating to China's "takeover" in 1997 prevents
us from finding much risk-adjusted value. Australia and New Zealand are
attractive as valuations remain low.
The overall "panic" that sent emerging market investors running last year was
not selective in its wake. Therefore, many solid global companies are now
trading at attractive valuations, even after adjusting for risk.
After a year of healthy equity returns, it appears the global landscape remains
ripe for a sustained period of solid performance. With the backdrop of falling
interest rates, modest inflation and growing management initiatives, we feel
foreign equities continue to present value opportunities across the globe.
INTERNATIONAL STOCK SERIES
Value of $10,000 invested on January 3, 1995
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
INTERNATIONAL STOCK
MSCI EAFE*** SERIES
<S> <C> <C>
01/03/95 10,000 10,000
12/31/95 11,155 11,435
International Stock Series
Average Annual Total Return*
Since
January 3, 1995**
+14.35%
Value of $10,000 invested on
January 3, 1995
</TABLE>
Annual period ended December 31
Past performance is not indicative of future performance. Investment
return and principal value will fluctuate so that shares, when redeemed,
may be worth more or less than their original cost. 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.
INTERNATIONAL STOCK SERIES
PORTFOLIO DIVERSIFICATION BY COUNTRY AS OF 12/31/95
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Japan 24.4%
United Kingdom 14.8%
France 11.4%
Other 11.1%
Receivable/Cash Equivalents 8.7%
Germany 8.0%
Netherlands 7.2%
Switzerland 7.1%
Australia 3.9%
Sweden 3.4%
International Stock Series
Portfolio Diversification by
Country as of 12/31/95
</TABLE>
INTERNATIONAL STOCK SERIES
TOP TEN HOLDINGS AS OF 12/31/95
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Alcatel Alsthom CIE Generale D'Electricite S.A.
(France) 2.9%
2. Mitsubishi Heavy Industries Ltd. (Japan) 2.4%
3. Internationale Nederlanden Groep NV (Netherlands) 2.3%
4. Westpac Banking Corp. Ltd. (Australia) 2.2%
5. Sumitomo Trust & Bank (Japan) 2.1%
6. Rohm Co. (Japan) 2.1%
7. Royal Dutch Petroleum Co. (Netherlands) 2.1%
8. Ciba-Geigy AG (Switzerland) 2.1%
9. Siemens AG (Germany) 2.1%
10. Cadbury Schweppes plc (United Kingdom) 2.0%
</TABLE>
13
<PAGE>
AGGRESSIVE GROWTH SERIES
The Aggressive Growth Series focuses on small to medium size companies that have
superior growth rates expected in both revenues and earnings. These companies
tend to be innovators in their respective industries and have the potential to
develop into tomorrow's growth leaders. Investing in higher risk companies can
prove rewarding in a favorable market environment such as 1995. Companies with
superior growth rates tend to have higher valuation levels and at times lower
levels of liquidity. During severe market corrections, these types of companies
can experience volatility. Longer term, however, patient investors can be
rewarded by taking the added risk of investing in the premier growth companies
of the future.
The portfolio is diversified in various segments of the economy, including
technology, consumer-related companies and healthcare services. Many emerging
growth companies have gone public in recent years, creating a dynamic
environment for investors in rapidly growing companies.
AGGRESSIVE GROWTH SERIES
Value of $10,000 invested on May 2, 1994
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH
S&P 500*** SERIES
<S> <C> <C>
05/02/94 10,000 10,000
12/31/94 10,397 9,811
12/31/95 14,297 12,743
Value of $10,000 invested on May 2,
1994
Aggressive Growth Series
Average Annual Total Return*
Since
1 Year May 2, 1994**
+29.89% +15.64%
</TABLE>
Annual period ended December 31
Past performance is not indicative of future performance. Investment
return and principal value will fluctuate so that shares, when redeemed,
may be worth more or less than their original cost. 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.
AGGRESSIVE GROWTH SERIES
PORTFOLIO COMPOSITION BY
INDUSTRY AS OF 12/31/95
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Computer - Software 24.5%
Other 14.8%
Cash Equivalents/Receivables 13.1%
Retail - Miscellaneous 11.3%
Health Care Services 10.5%
Telecommunications 5.4%
Restaurants and Franchising 5.2%
Business Services and Supplies 4.6%
Utilities - Telephone 4.0%
Office Equipment and Supplies 3.4%
Electronic - Controls and Equipment 3.2%
Aggressive Growth Series
Portfolio Composition by Industry
as of 12/31/95
</TABLE>
AGGRESSIVE GROWTH SERIES
TOP TEN HOLDINGS AS OF 12/31/95
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Informix Corp. 3.1%
2. American Oncology Resources, Inc. 2.6%
3. Macromedia, Inc. 2.4%
4. APAC Teleservices, Inc. 2.3%
5. Corporate Express, Inc. 2.2%
6. Omnicare, Inc. 2.2%
7. MFS Communications Co. 2.2%
8. LCI International, Inc. 2.1%
9. Sunglass Hut International, Inc. 2.1%
10. Input/Output, Inc. 2.1%
</TABLE>
PORTFOLIO CHANGES FOR THE
YEAR ENDED 12/31/95
ADDITIONS:
ADC Telecommunications, Inc.
American Oncology Resources, Inc.
APAC Teleservices, Inc.
Boston Chicken, Inc.
Cascade Communications Corp.
Cerner Corp.
Cheesecake Factory, Inc.
Citrix Systems, Inc.
CKS Group, Inc.
Davidson and Associates, Inc.
Franklin Electronic Publishers, Inc.
FSI International, Inc.
FTP Software, Inc.
Gadzooks, Inc.
Idexx Laboratories, Inc.
Isolyser Co., Inc.
Legato Systems, Inc.
Macromedia, Inc.
Mecon, Inc.
Medaphis Corp.
Medic Computer Systems, Inc.
MedPartners, Inc.
MIDCOM Communications, Inc.
Netscape Communications Corp.
Network General Corp.
Paradigm Technology, Inc.
Quarterdeck Corp.
Scopus Technology, Inc.
Shiva Corp.
Spyglass, Inc.
Summit Medical Systems, Inc.
Sunglass Hut International, Inc.
Trimble Navigation Ltd.
Visioneer, Inc.
ELIMINATIONS:
American Freightways Corp.
Benchmark Electronics, Inc.
Callaway Golf Co.
Centocor, Inc.
Cygne Designs, Inc.
DOVatron International, Inc.
ECI Telecom Ltd.
Franklin Quest Co.
Landmark Graphics Corp.
Mid Atlantic Medical Services, Inc.
Newbridge Networks Corp.
Powersoft Corp.
Resound Corp.
Rio Hotel & Casino, Inc.
Starbucks Corp.
Stein Mart, Inc.
United Waste System, Inc.
Wall Data
IN CLOSING
We appreciate your investment with Fortis. If you have any questions, please
call us or talk with your investment professional.
Sincerely,
[SIG] [SIG]
Dean C. Kopperud James S. Byrd
President Vice President
[SIG] [SIG]
Howard G. Hudson Stephen M. Poling
Vice President Vice President
January 22, 1996
14
<PAGE>
FORTIS SERIES FUND, INC.
MONEY MARKET SERIES
Schedule of Investments
December 31, 1995
SHORT-TERM INVESTMENTS-102.94%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (a) Value (b)
----------- ------------ ------------ ------------
<C> <S> <C> <C> <C>
BANKS-17.63%
$1,400,000 Banc One Funding Corp., 5.84% 1-11-1996 (c)................................ A1+ $1,397,562 $1,397,562
800,000 Deutsche Bank Financial Inc., 5.84% 1-22-1996.............................. A1+ 797,213 797,213
1,693,000 First Trust Money Market Variable Rate Time Deposit, Current Rate -- 5.51%
1-2-1996................................................................. A1+ 1,693,000 1,693,000
1,800,000 First Union Capital Corp., 5.82% 2-12-1996................................. A1 1,787,831 1,787,831
1,700,000 Norwest Corp., 5.84% 1-26-1996............................................. A1+ 1,693,051 1,693,051
------------ ------------
7,368,657 7,368,657
------------ ------------
BEVERAGE-4.75%
2,000,000 Pepsico, Inc., 5.81% 2-16-1996............................................. A1 1,985,273 1,985,273
------------ ------------
BROKERAGE AND INVESTMENT-2.37%
1,000,000 Merrill Lynch & Co., Inc., 5.87% 2-29-1996................................. A1 978,737 991,017
------------ ------------
CAPTIVE AUTO FINANCE-5.67%
1,000,000 Ford Motor Credit Corp., 5.84% 1-8-1996.................................... A1 998,733 998,733
1,400,000 General Motors Acceptance Corp., 5.74% 5-6-1996............................ P1* 1,363,358 1,373,379
------------ ------------
2,362,091 2,372,112
------------ ------------
CAPTIVE EQUIPMENT FINANCE-12.93%
1,800,000 IBM Credit Corp., 5.83% 2-1-1996........................................... A1 1,790,960 1,790,960
1,900,000 John Deere Capital Corp., 5.55% 4-17-1996.................................. A1 1,866,212 1,869,277
1,800,000 PACCAR Financial Co., 5.79% 7-19-1996...................................... A1 1,726,842 1,745,831
------------ ------------
5,384,014 5,406,068
------------ ------------
CAPTIVE OIL FINANCE-2.87%
1,200,000 Chevron Oil Finance Co., 5.78% 1-11-1996................................... A1 1,197,917 1,197,917
------------ ------------
CONSUMER FINANCING-21.00%
1,800,000 American Express Credit Co., 5.83% 1-2-1996................................ A1 1,799,430 1,799,430
1,800,000 American General Finance Corp., 5.84% 1-3-1996............................. A1+ 1,799,145 1,799,145
1,800,000 Beneficial Corp., 5.88% 1-17-1996.......................................... A1 1,795,113 1,795,113
1,600,000 Commercial Credit Corp., 5.92% 1-31-1996................................... A1 1,592,009 1,592,009
1,800,000 Household Finance Corp., 5.82% 1-18-1996................................... A1 1,794,915 1,794,915
------------ ------------
8,780,612 8,780,612
------------ ------------
DIVERSIFIED FINANCE-16.44%
1,816,000 Associates Corp. Master Variable Rate Note, Current rate -- 5.52%
1-2-1996................................................................. A1+ 1,816,000 1,816,000
1,700,000 CIT Group Holdings, Inc., 5.86% 2-22-1996.................................. A1 1,685,809 1,685,809
1,700,000 General Electric Capital Corp., 5.65% 4-10-1996............................ A1 1,669,262 1,674,293
1,700,000 Prudential Funding Corp., 5.88% 1-17-1996.................................. A1+ 1,695,368 1,695,368
------------ ------------
6,866,439 6,871,470
------------ ------------
INDUSTRIAL-4.29%
1,800,000 Xerox Credit Corp., 5.80% 1-16-1996........................................ A1 1,795,464 1,795,464
------------ ------------
TOBACCO-4.52%
1,900,000 Philip Morris Cos., Inc., 5.69% 2-9-1996................................... A1 1,888,241 1,888,241
------------ ------------
UTILITIES-ELECTRIC-8.99%
2,000,000 Central & South West Credit Corp., 5.88% 1-23-1996......................... A1 1,992,691 1,992,691
1,772,000 Wisconsin Electric Fuel Trust, 5.84% 1-24-1996............................. A1+ 1,765,266 1,765,266
------------ ------------
3,757,957 3,757,957
------------ ------------
UTILITIES-GAS-1.48%
621,000 Bay State Gas Co., 5.85% 1-10-1996......................................... A1 620,012 620,012
------------ ------------
TOTAL SHORT-TERM INVESTMENTS (COST: $42,985,414) (A)....................... $43,034,800
------------
------------
</TABLE>
(a) At December 31, 1995, the cost of securities for federal income tax
purposes was $42,985,414 and the aggregate gross unrealized appreciation
and depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation........................... $ 49,386
Unrealized depreciation........................... (0)
---------------------------------------------------------------
Net unrealized appreciation....................... $ 49,386
---------------------------------------------------------------
</TABLE>
(b) See Note A 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
15
<PAGE>
FORTIS SERIES FUND, INC.
U.S. GOVERNMENT SECURITIES SERIES
Schedule of Investments
December 31, 1995
ASSET BACKED SECURITIES-24.16%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (a) Value (b)
----------- ------------ ------------ ------------
<C> <S> <C> <C> <C>
COMMERCIAL LOANS-7.22%
$ 996,334 Merrill Lynch Mortgage Investors, Inc., 6.7928% Variable
Rate Ser 1995-C3 Class A1 6-25-2015....................... AAA $ 1,006,142 $ 1,019,686
1,738,923 Merrill Lynch Mortgage Investors, Inc., 7.522% Variable Rate
Ser 1995-C2 Class A1 6-15-2021............................ Aaa* 1,765,278 1,792,449
8,100,000 Nomura Asset Securities Corp., 6.68% Congregate Care Pass
Thru Certificate Ser 1993-1 Class A3 12-15-2003........... A 7,879,578 8,088,344
1,260,048 Resolution Trust Corp., 7.15% Mtg Pass Thru Certificate Ser
1995-2 Cl M1 5-25-2029.................................... Aa2* 1,256,745 1,276,193
1,000,000 Resolution Trust Corp., 7.45% Mtg Pass Thru Certificate Ser
1995-2 Cl A1C 5-25-2029................................... Aaa* 994,774 1,011,875
------------ ------------
12,902,517 13,188,547
------------ ------------
MANUFACTURED HOMES-9.35%
4,577,723 CIT Group Manufactured Housing Contract, 7.70% Sr Sub Pass
Thru Certificate Ser 1995-1 Class A 8-15-2020............. Aaa* 4,575,784 4,719,399
5,000,000 Green Tree Financial Corp., 7.65% Sr Sub Pass Thru
Certificate Ser 1994-1 Class A5 4-15-2019................. Aa2* 4,980,469 5,437,500
3,000,000 Green Tree Financial Corp., 8.35% Sr Sub Pass Thru
Certificate Ser 1994-7 Class A4 3-15-2020................. Aaa* 2,996,250 3,254,670
3,500,000 Oakwood Mortgage Investors, Inc., 7.10% Ser 1995-A Class A3
9-15-2020................................................. AAA 3,496,719 3,677,611
------------ ------------
16,049,222 17,089,180
------------ ------------
MISCELLANEOUS-1.33%
2,398,745 Vanderbilt Mortgage & Finance, Inc., 7.00% Mfg Housing
Contract Ser 1994-A Class A1 7-10-2019.................... AA 2,397,246 2,434,172
------------ ------------
MULTI-FAMILY LOANS-6.26%
8,501,000 DLJ Mtg Acceptance Corp., 8.50% Multifamily Mtg Pass Thru
Certificate Ser 1994-4 Cl A2 4-18-2001.................... A 8,568,742 9,070,975
2,300,000 Paine Webber Mortgage Acceptance Corp. IV, 6.70% Ser 1995-M1
1-15-2007(d).............................................. AAA** 2,307,062 2,363,250
------------ ------------
10,875,804 11,434,225
------------ ------------
TOTAL ASSET BACKED SECURITIES............................... $42,224,789 $44,146,124
------------ ------------
------------ ------------
</TABLE>
CORPORATE BONDS-INVESTMENT GRADE-3.19%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost Value
----------- ------------- ------------ ------------
<C> <S> <C> <C> <C>
BANKS-1.12%
$2,000,000 Norwest Corp., 6.375% 9-15-2002............................. AAA $1,985,060 $2,042,938
------------ ------------
WASTE DISPOSAL-2.07%
3,500,000 Browning-Ferris, Inc., 7.40% Secured Note 9-15-2035......... A 3,481,275 3,776,357
------------ ------------
TOTAL CORPORATE BONDS - INVESTMENT GRADE SECURITIES......... $5,466,335 $5,819,295
------------ ------------
------------ ------------
</TABLE>
U.S. GOVERNMENT SECURITIES-69.92%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Cost Value
------------ ------------- -------------
<C> <S> <C> <C>
FEDERAL HOME LOAN MORTGAGE CORPORATION-0.80%
MORTGAGE BACKED SECURITIES:
$ 1,328,041 9.50% 2016................................................................. $ 1,429,097 $ 1,412,704
39,598 11.25% 2015................................................................ 43,076 43,979
------------- -------------
TOTAL FEDERAL HOME LOAN MORTGAGE CORPORATION SECURITIES.................... 1,472,173 1,456,683
------------- -------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION-24.78%
MORTGAGE BACKED SECURITIES:
2,997,460 6.50% 2010-2024............................................................ 2,960,555 3,012,317
10,148,380 7.00% 2025................................................................. 10,004,020 10,227,660
3,992,412 7.25% 2005................................................................. 4,134,642 4,212,793
3,734,315 7.50% 2023................................................................. 3,842,844 3,825,339
340,372 8.50% 2017................................................................. 348,429 355,050
</TABLE>
16
<PAGE>
U.S. GOVERNMENT SECURITIES-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Cost Value
------------ ------------- -------------
<C> <S> <C> <C>
$ 253,082 9.00% 2020-2021............................................................ $ 253,138 $ 266,527
1,592,974 9.75% 2020................................................................. 1,718,421 1,722,404
------------- -------------
23,262,049 23,622,090
------------- -------------
NOTES:
7,000,000 6.85% Global Note 2000..................................................... 7,000,000 7,275,807
6,000,000 7.40% Global Note 2004..................................................... 6,322,450 6,615,756
3,400,000 8.50% Global Note 2005..................................................... 3,537,062 3,705,918
------------- -------------
16,859,512 17,597,481
------------- -------------
REMIC-PAC'S:
2,417,633 7.50% Trust #1991-136G 2019................................................ 2,507,161 2,427,857
1,500,000 9.00% Trust #1991-39J 2021................................................. 1,531,875 1,622,458
------------- -------------
4,039,036 4,050,315
------------- -------------
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION SECURITIES..................... 44,160,597 45,269,886
------------- -------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION-8.26%
MORTGAGE BACKED SECURITIES:
3,958,726 7.50% 2022................................................................. 3,966,149 4,070,065
3,759,237 9.00% 2020................................................................. 3,937,800 3,981,265
2,160,181 9.125% Fleet Mtg Securities, Ser 1989-3 C1 D (GNMA Backed) 2018............ 2,211,443 2,207,206
4,564,614 9.50% 2018-2021............................................................ 4,744,305 4,835,619
------------- -------------
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION SECURITIES.................. 14,859,697 15,094,155
------------- -------------
OTHER DIRECT FEDERAL OBLIGATIONS-15.03%
FEDERAL HOME LOAN BANK:
11,000,000 6.125% Global Registered Note 1996......................................... 10,939,531 11,050,435
15,000,000 7.31% 2004................................................................. 14,994,531 16,402,050
------------- -------------
TOTAL OTHER DIRECT FEDERAL OBLIGATIONS..................................... 25,934,062 27,452,485
------------- -------------
OTHER GOVERNMENT AGENCIES-1.57%
RESOLUTION FUNDING CORPORATION:
9,000,000 8.395% Zero Coupon Strip 2014 (c).......................................... 2,172,418 2,876,571
------------- -------------
U.S. TREASURY SECURITIES-19.48%
BONDS:
2,000,000 6.875% 2025................................................................ 2,155,000 2,256,250
1,200,000 7.50% 2024................................................................. 1,293,562 1,441,500
6,200,000 7.625% 2025................................................................ 7,038,531 7,575,625
12,975,000 8.125% 2021................................................................ 15,047,108 16,421,484
------------- -------------
25,534,201 27,694,859
------------- -------------
NOTES:
500,000 6.25% 2003................................................................. 505,625 521,875
1,090,000 6.375% 2002................................................................ 1,114,184 1,145,181
1,165,000 6.75% 2000................................................................. 1,188,118 1,226,163
2,840,000 7.25% 1996................................................................. 2,855,531 2,875,500
2,000,000 8.75% 1997................................................................. 2,166,562 2,118,750
------------- -------------
7,830,020 7,887,469
------------- -------------
TOTAL U.S. TREASURY SECURITIES............................................. 33,364,221 35,582,328
------------- -------------
TOTAL U.S. GOVERNMENT & AGENCIES........................................... 121,963,168 127,732,108
------------- -------------
TOTAL LONG-TERM DEBT SECURITIES............................................ $ 169,654,292 $ 177,697,527
------------- -------------
------------- -------------
</TABLE>
17
<PAGE>
FORTIS SERIES FUND, INC.
U.S. GOVERNMENT SECURITIES SERIES (CONTINUED)
Schedule of Investments
December 31, 1995
SHORT-TERM INVESTMENTS-1.68%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (b)
- ------------ -------------
<C> <S> <C>
BANKS-1.68%
$3,074,000 First Trust Money Market Variable Rate Time Deposit, Current
rate -- 5.51%............................................................ $ 3,074,000
-------------
TOTAL INVESTMENTS IN SECURITIES (COST: $172,728,292)(A).................... $ 180,771,527
-------------
-------------
</TABLE>
(a) At December 31, 1995, the cost of securities for federal income tax
purposes was $172,878,660 and the aggregate gross unrealized appreciation
and depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation........................... $ 8,057,855
Unrealized depreciation........................... (164,988)
---------------------------------------------------------------
Net unrealized appreciation....................... $ 7,892,867
---------------------------------------------------------------
</TABLE>
(b) See Note A 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) 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: On September 13, 1995 and November 10, 1995 the
portfolio acquired $1,700,000 and $600,000 par of Paine Webber Mortgage
Acceptance Corp. IV due 2007 with a cost basis of $1,701,062 and $606,000,
respectively. The value of these securities at December 31, 1995, is
$2,363,250 which represents 1.29% of net assets.
(e) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets.
* Moody's Rating
** Fitch Rating
18
<PAGE>
FORTIS SERIES FUND, INC.
DIVERSIFIED INCOME SERIES
Schedule of Investments
December 31, 1995
COMMON STOCKS-0.01%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
----------- --------- ----------
<C> <S> <C> <C>
RETAIL-MISCELLANEOUS-0.01%
500 Petro PSC Properties, L.P. (Warrants) (a).................................. $18,285 $ 16,000
--------- ----------
</TABLE>
ASSET BACKED SECURITIES-16.47%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
----------- ------------ ------------ ------------
<C> <S> <C> <C> <C>
COMMERCIAL LOANS-4.36%
$1,394,268 Merrill Lynch Mortgage Investors, Inc., 6.7928% Variable Rate Ser 1995-C3
Class A1 6-25-2015....................................................... AAA $ 1,407,993 $ 1,426,946
1,291,771 Merrill Lynch Mortgage Investors, Inc., 7.522% Variable Rate Ser 1995-C2
Class A1 6-15-2021....................................................... Aaa* 1,311,350 1,331,534
2,000,000 Nomura Asset Securities Corp., 6.68% Congregate Care Pass Thru Certificate
Ser 1993-1 Class A3 12-15-2003........................................... A 1,957,500 1,997,122
------------ ------------
4,676,843 4,755,602
------------ ------------
MANUFACTURED HOMES-7.13%
1,307,921 CIT Group Manufactured Housing Contract, 7.70% Sr Sub Pass Thru Certificate
Ser 1995-1 Class A 8-15-2020............................................. Aaa* 1,307,595 1,348,400
1,500,000 Green Tree Financial Corp., 7.65% Sr Sub Pass Thru Certificate Ser 1994-1
Class A5 4-15-2019....................................................... Aa2* 1,494,140 1,631,250
2,000,000 Green Tree Financial Corp., 8.35% Sr Sub Pass Thru Certificate Ser 1994-7
Class A4 3-15-2020....................................................... Aaa* 1,997,500 2,169,780
2,500,000 Oakwood Mortgage Investors, Inc., 7.10% Ser 1995-A Class A3 9-15-2020...... AAA 2,497,656 2,626,865
------------ ------------
7,296,891 7,776,295
------------ ------------
MISCELLANEOUS-1.19%
1,279,331 Vanderbilt Mortgage & Finance, Inc., 7.00% Mfg Housing Contract Ser 1994-A
Class A1 7-10-2019....................................................... AA 1,278,531 1,298,225
------------ ------------
MULTI-FAMILY LOANS-2.39%
1,500,000 DLJ Mortgage Acceptance Corp., 8.80% Multifamily Mtg Pass Thru Certificate
Ser 1993-12 Class B1 9-18-2003........................................... NR* 1,473,750 1,582,526
1,000,000 Paine Webber Mortgage Acceptance Corp. IV, 6.70% Ser 1995-M1 1-15-2007
(f)...................................................................... AAA** 1,000,625 1,027,500
------------ ------------
2,474,375 2,610,026
------------ ------------
WHOLE LOAN RESIDENTIAL-1.40%
1,510,635 Residential Resources, Inc., 9.50% Ser 14 Class A Busted Pac 12-1-2018..... AAA 1,533,295 1,533,852
------------ ------------
TOTAL ASSET BACKED SECURITIES.............................................. $17,259,935 $17,974,000
------------ ------------
</TABLE>
CORPORATE BONDS-INVESTMENT GRADE-16.61%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
----------- ------------ ------------ ------------
<C> <S> <C> <C> <C>
BANKS-5.32%
$1,000,000 Advanta National Bank, 6.45% Note 10-30-2000............................... BBB $ 998,780 $ 1,012,244
2,000,000 Capital One Bank, 6.83% Med Term Note 8-16-1999............................ Ba3* 2,000,000 2,056,518
2,500,000 Nationsbank Corp., 7.75% 8-15-2015......................................... A- 2,500,000 2,736,570
------------ ------------
5,498,780 5,805,332
------------ ------------
BROKERAGE AND INVESTMENT-1.18%
1,250,000 Bear Stearns & Co., 6.875% Sr Note 10-1-2005............................... A 1,241,450 1,287,254
------------ ------------
CHEMICALS-0.71%
750,000 Methanex Corp., 7.40% Note 8-15-2002....................................... BBB+ 746,575 779,222
------------ ------------
FOREIGN-GOVERNMENT AGENCIES-3.14%
3,000,000 Hydro-Quebec, 8.05% Deb 7-7-2024........................................... A+ 3,298,830 3,422,787
------------ ------------
HOTEL AND MOTEL-0.95%
1,000,000 Renaissance Hotel Group Finance Corp., 8.875% 10-1-2005.................... BBB 999,036 1,040,000
------------ ------------
</TABLE>
19
<PAGE>
FORTIS SERIES FUND, INC.
DIVERSIFIED INCOME SERIES (CONTINUED)
Schedule of Investments
December 31, 1995
CORPORATE BONDS-INVESTMENT GRADE-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
----------- ------------ ------------ ------------
<C> <S> <C> <C> <C>
MEDIA-1.09%
$1,000,000 News America Holdings, Inc., 8.875% Sr Note 4-26-2023...................... BBB $ 991,701 $ 1,189,557
------------ ------------
MISCELLANEOUS-1.75%
1,875,000 Service Corp International, 6.375% Note 10-1-2000.......................... BBB+ 1,873,463 1,908,547
------------ ------------
PAPER-0.49%
520,000 Champion International, Inc., 7.35% Deb 11-1-2025.......................... BBB 517,150 533,655
------------ ------------
WASTE DISPOSAL-1.98%
2,000,000 Browning-Ferris, Inc., 7.40% Secured Note 9-15-2035........................ A 1,989,300 2,157,918
------------ ------------
TOTAL CORPORATE BONDS - INVESTMENT GRADE................................... $17,156,285 $18,124,272
------------ ------------
</TABLE>
CORPORATE BONDS-NON-INVESTMENT GRADE-16.93%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
----------- ------------ ------------ ------------
<C> <S> <C> <C> <C>
BROADCASTING-0.94%
$1,000,000 Sinclair Broadcasting, Inc., 10.00% Sr Sub Note 9-30-2005.................. B+ $ 1,000,000 $ 1,022,500
------------ ------------
CABLE TELEVISION-2.53%
500,000 Comcast Corp., 9.125% Sr Sub Note 10-15-2006............................... B+ 516,880 520,000
250,000 Continental Cablevision, 8.30% Sr Note 5-15-2006 (f)....................... BB+ 250,001 250,000
1,001,722 Falcon Holding Group L.P., 11.00% Sr Sub Note Ser B 9-15-2003 (Interest is
Payable-in-Kind)......................................................... NR* 810,927 926,306
500,000 Telewest plc, 11.00% Sr Disc Deb 10-1-2007 (Zero coupon until 10-1-2000)
(e)...................................................................... BB 301,171 300,625
750,000 Telewest plc, 9.625% Sr Deb 10-1-2006...................................... BB 753,125 762,187
------------ ------------
2,632,104 2,759,118
------------ ------------
CHEMICALS-2.12%
1,000,000 Arcadian Partners L.P., 10.75% Sr Note Ser B 5-1-2005...................... BB- 999,074 1,100,000
500,000 Indspec Chemical Corp., 11.50% Sr Sub Disc Note Ser B 12-1-2003 (Zero
Coupon until 12-1-1998) (e).............................................. B- 313,026 413,750
750,000 NL Industries, Inc., 11.75% Sr Secured Note 10-15-2003..................... B 751,875 800,625
------------ ------------
2,063,975 2,314,375
------------ ------------
COSMETICS AND SUNDRIES-0.47%
500,000 Revlon Consumer Products Corp., 10.50% Sr Sub Note 2-15-2003............... B- 509,062 512,500
------------ ------------
ENERGY-0.63%
649,374 Midland Cogeneration Venture L.P., 10.33% Midland Funding Sr Secured Lease
Obligation Bond Ser C 7-23-2002.......................................... BB- 664,192 684,822
------------ ------------
FOOD-GROCERY, MISCELLANEOUS-0.86%
1,000,000 Specialty Foods Corp., 10.25% Sr Note Ser B 8-15-2001...................... B 991,250 940,000
------------ ------------
FOOD-MISCELLANEOUS-0.88%
1,000,000 Envirodyne Industries, Inc., 12.00% First Priority Sr Secured Note
6-15-2000................................................................ NR 1,000,000 965,000
------------ ------------
HEALTH CARE SERVICES-0.48%
500,000 Tenet Healthcare Corp., 8.625% Sr Note 12-1-2003........................... BB- 498,360 527,500
------------ ------------
HOTEL AND MOTEL-0.46%
500,000 Host Marriott Properties, Inc., 9.00% Sr Note 12-15-2007 (f)............... BB- 500,000 500,000
------------ ------------
INDUSTRIAL-0.20%
250,000 American Standard, Inc., 9.45% Sr Sub Deb 6-1-2005 (Zero coupon until
6-1-1998, thereafter 10.50%) (e) B+ 211,413 213,750
------------ ------------
LEISURE TIME-AMUSEMENTS-1.15%
1,000,000 Bally's Park Place, Inc., 9.25% First Mtg Bond 3-15-2004................... BB 962,802 1,010,000
500,000 Capital Gaming International, Inc., 11.50% Secured Note 2-1-2001 (a)....... Caa* 350,000 250,000
------------ ------------
1,312,802 1,260,000
------------ ------------
MACHINERY-0.92%
1,000,000 Spreckels Industries, Inc., 11.50% Sr Secured Note 9-1-2000................ B 976,250 1,000,000
------------ ------------
</TABLE>
20
<PAGE>
CORPORATE BONDS-NON-INVESTMENT GRADE-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
----------- ------------ ------------ ------------
<C> <S> <C> <C> <C>
METALS-MINING AND MISCELLANEOUS-0.99%
$1,000,000 Renco Metals, Inc., 12.00% Sr Note 7-15-2000............................... B+ $ 1,082,500 $ 1,080,000
------------ ------------
OFFICE EQUIPMENT AND SUPPLIES-0.66%
750,000 Mail-Well Corp., 10.50% Sr Sub Note 2-15-2004.............................. B 665,625 720,000
------------ ------------
RESTAURANTS AND FRANCHISING-0.65%
1,000,000 Flagstar Corp., 11.25% Sr Sub Deb 11-1-2004................................ CCC+ 1,038,437 710,000
------------ ------------
RETAIL-GROCERY-1.40%
1,000,000 Farm Fresh, Inc., 12.25% Sr Note 10-1-2000................................. B- 1,009,563 820,000
250,000 Grand Union Co., 12.00% Sr Note 9-1-2004 (a)............................... B- 236,875 216,250
500,000 Ralphs Grocery Co., 11.00% Sr Sub Note 6-15-2005........................... B- 490,000 487,500
------------ ------------
1,736,438 1,523,750
------------ ------------
STEEL AND IRON-0.25%
250,000 AK Steel Corp., 10.75% Sr Note 4-1-2004.................................... BB- 268,750 276,875
------------ ------------
TECHNOLOGY-0.97%
1,000,000 Computervision Corp., 11.375% Sr Sub Note 8-15-1999........................ B- 1,033,750 1,055,000
------------ ------------
TOBACCO-0.38%
500,000 Liggett Group, Inc., 11.50% Secured Note Ser B 2-1-1999.................... NR 360,625 410,000
------------ ------------
TOTAL CORPORATE BONDS - NON-INVESTMENT GRADE............................... $18,545,533 $18,475,190
------------ ------------
</TABLE>
U.S. GOVERNMENT SECURITIES-46.62%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Cost (b) Value (c)
----------- ------------- -------------
<C> <S> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION-17.89%
MORTGAGE BACKED SECURITIES:
$1,979,915 6.50% 2010................................................................. $ 1,962,281 $ 1,989,815
5,075,945 7.00% 2025................................................................. 5,000,092 5,115,597
1,438,495 7.50% 2022................................................................. 1,486,820 1,473,559
------------- -------------
8,449,193 8,578,971
------------- -------------
NOTES:
2,000,000 6.85% 2000................................................................. 2,000,000 2,078,802
3,000,000 7.40% 2004................................................................. 3,169,600 3,307,878
2,500,000 7.84% 1998................................................................. 2,516,775 2,509,980
------------- -------------
7,686,375 7,896,660
------------- -------------
REMIC-PAC'S:
3,000,000 7.00% Trust #1992-49H Busted PAC 2020...................................... 2,892,344 3,042,387
------------- -------------
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION................................ 19,027,912 19,518,018
------------- -------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION-9.83%
MORTGAGE BACKED SECURITIES:
2,375,236 7.50% 2022................................................................. 2,379,689 2,442,039
4,048,409 9.00% 2020................................................................. 4,240,708 4,287,516
2,040,010 9.125% Fleet Mortgage Securities Ser 1989-3 Class D 2018 (GNMA Backed)..... 2,078,575 2,084,419
1,815,561 9.50% 2019................................................................. 1,884,349 1,917,079
------------- -------------
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION............................. 10,583,321 10,731,053
------------- -------------
OTHER DIRECT FEDERAL OBLIGATIONS-5.20%
FEDERAL HOME LOAN BANK:
750,000 6.125% Global Registered Note 1996......................................... 745,898 753,439
4,500,000 7.31% 2004................................................................. 4,516,172 4,920,615
------------- -------------
TOTAL OTHER DIRECT FEDERAL OBLIGATIONS..................................... 5,262,070 5,674,054
------------- -------------
</TABLE>
21
<PAGE>
FORTIS SERIES FUND, INC.
DIVERSIFIED INCOME SERIES (CONTINUED)
Schedule of Investments
December 31, 1995
U.S. GOVERNMENT SECURITIES-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Cost (b) Value (c)
----------- ------------- -------------
<C> <S> <C> <C>
OTHER GOVERNMENT AGENCIES-0.72%
RESOLUTION FUNDING CORPORATION:
$2,500,000 7.415% Zero Coupon Bond 2014 (e)........................................... $ 648,076 $ 785,222
------------- -------------
U.S. TREASURY SECURITIES-12.98%
BONDS:
500,000 7.125% 1999................................................................ 519,766 529,843
6,775,000 8.125% 2021................................................................ 8,078,316 8,574,609
------------- -------------
8,598,082 9,104,452
------------- -------------
NOTES:
2,000,000 7.25% 1996................................................................. 2,010,938 2,025,000
3,000,000 9.375% 1996................................................................ 3,218,672 3,035,625
------------- -------------
5,229,610 5,060,625
------------- -------------
TOTAL U.S. TREASURY SECURITIES............................................. 13,827,692 14,165,077
------------- -------------
TOTAL U.S. GOVERNMENT SECURITIES........................................... 49,349,071 50,873,424
------------- -------------
TOTAL LONG-TERM INVESTMENTS................................................ $ 102,329,109 $ 105,462,886
------------- -------------
</TABLE>
SHORT-TERM INVESTMENTS-1.90%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
----------- -------------
<C> <S> <C>
BANKS-1.22%
$1,336,000 First Trust Money Market Variable Rate Time Deposit, Current
rate -- 5.51%............................................................ $ 1,336,000
-------------
DIVERSIFIED FINANCE-0.68%
739,000 Associates Corp. Master Variable Rate Note, Current rate -- 5.52%.......... 739,000
-------------
TOTAL SHORT-TERM INVESTMENTS............................................... $ 2,075,000
-------------
TOTAL INVESTMENTS IN SECURITIES (COST: $104,404,109) (B)................... $ 107,537,886
-------------
</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 December 31, 1995, the cost of securities for federal income tax
purposes was $104,404,109 and the aggregate gross unrealized appreciation
and depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation........................... $ 4,071,390
Unrealized depreciation........................... (937,613)
---------------------------------------------------------------
Net unrealized appreciation....................... $ 3,133,777
---------------------------------------------------------------
</TABLE>
(c) See Note A of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets. Market value of investments in foreign
securities represents 4.11% of net assets as of December 31, 1995.
(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: On September 13, 1995 the portfolio acquired
$1,000,000 par of Paine Webber Mortgage Acceptance Corp. IV due 2007 with a
cost basis of $1,000,625. On December 15, 1995 the portfolio acquired
$500,000 par of Host Marriott Properties, Inc. due 2007 with a cost basis
of $500,000. On December 22, 1995 the portfolio acquired $250,000 par of
Continental Cablevision due 2006 with a cost basis of $250,001. The value
of these securities at December 31, 1995, is $1,777,500 which represents
1.63% of net assets.
* Moody's Rating.
** Fitch Rating.
22
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL BOND SERIES
Schedule of Investments
December 31, 1995
CORPORATE BONDS-INVESTMENT GRADE-68.37%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
& Poor's Market
Principal Rating Value
Amount (d) (Unaudited) Cost (a)(d) (b)(d)
----------- ------------ ----------- -----------
<C> <S> <C> <C> <C>
DENMARK-8.79%
3,250,000 Kingdom of Denmark (Danish Krone), 7.00% 12-15-2004......... NR $ 556,358 $ 584,106
3,000,000 Kingdom of Denmark (Danish Krone), 8.00% 5-15-2003.......... NR 528,013 575,499
----------- -----------
1,084,371 1,159,605
----------- -----------
FRANCE-10.48%
2,500,000 France (Gov't of) (French Franc), 8.125% O.A.T. Bond
5-25-1999................................................. Aaa* 542,279 550,673
1,200,000 France (Gov't of) (French Franc), 8.50% O.A.T. Bond
3-28-2000................................................. Aaa* 268,445 269,942
2,500,000 Electricite de France (French Franc), 8.60% 2-15-2000....... Aaa* 525,889 560,897
----------- -----------
1,336,613 1,381,512
----------- -----------
GERMANY-28.62%
880,000 Deutsche Ausgleichsbank (German Deutschemark), 6.375%
11-7-2002................................................. AAA 625,574 634,510
1,500,000 Kreditanstalt Fuer Wiederaufbau Int'l Finance Inc. (German
Deutschemark), 7.50% 1-24-2000............................ AAA 1,130,809 1,143,909
860,000 Landeskreditbank Baden-Wurttemberg (German Deutschemark),
6.625% 8-20-2003.......................................... AAA 615,762 623,875
750,000 Bundesrepublic Deutschland (German Deutschemark), 7.375%
1-3-2005.................................................. AAA 566,985 572,635
1,000,000 Bundesrepublic Deutschland (German Deutschemark), 8.375%
5-21-2001................................................. Aaa* 796,981 799,775
----------- -----------
3,736,111 3,774,704
----------- -----------
JAPAN-4.56%
875,000 Export-Import Bank of Japan (German Deutschemark), 5.875%
12-17-2003................................................ AAA 594,270 601,561
----------- -----------
NETHERLANDS-1.11%
195,000 Dutch Government (Dutch Guilder), 8.75% 1-15-2007........... NR 118,582 145,856
----------- -----------
UNITED KINGDOM-9.16%
600,000 United Kingdom Treasury (British Pound Sterling), 8.00%
12-7-2000................................................. NR 939,821 977,265
130,000 British Gas plc (British Pound Sterling), 10.875%
3-26-2001................................................. AA+ 222,610 230,348
----------- -----------
1,162,431 1,207,613
----------- -----------
UNITED STATES-5.65%
650,000 General Electric Capital Corp., 8.125% 2-23-2007............ AAA 712,351 745,469
----------- -----------
TOTAL CORPORATE BONDS - INVESTMENT GRADE.................... $8,744,729 $9,016,320
----------- -----------
----------- -----------
</TABLE>
U.S. GOVERNMENT SECURITIES 23.21%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Principal Value
Amount Cost (a)(d) (b)(d)
--------- ----------- -----------
<C> <S> <C> <C>
U.S. TREASURY SECURITIES
BONDS:
$515,000 8.875% 2017................................................. $ 568,006 $ 689,938
----------- -----------
NOTES:
900,000 5.25% 1998.................................................. 850,597 900,280
890,000 7.75% 2000.................................................. 951,595 967,039
400,000 8.125% 2019................................................. 460,384 503,000
----------- -----------
2,262,576 2,370,319
----------- -----------
TOTAL U.S. GOVERNMENT SECURITIES............................ 2,830,582 3,060,257
----------- -----------
TOTAL LONG-TERM INVESTMENTS................................. $11,575,311 $12,076,577
----------- -----------
----------- -----------
</TABLE>
23
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL BOND SERIES (CONTINUED)
Schedule of Investments
December 31, 1995
SHORT-TERM INVESTMENTS-4.27%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal
Amount Market
(d) Value (b)(d)
--------- ------------
<C> <S> <C>
BANKS-0.17%
$ 23,092 First Trust Money Market Variable Rate Time Deposit, Current
rate -- 5.51%............................................................ $ 23,092
------------
GOVERNMENT SECURITIES-4.10%
540,000 First American Institutional Government Fund, Current rate -- 5.43%........ 540,000
------------
TOTAL SHORT-TERM INVESTMENTS............................................... $ 563,092
------------
------------
TOTAL INVESTMENTS IN SECURITIES (COST: $12,138,403) (A).................... $12,639,669
------------
------------
</TABLE>
(a) At December 31, 1995, the cost of securities for federal income tax
purposes was $12,138,403 and the aggregate gross unrealized appreciation
and depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation........................... $ 501,266
Unrealized depreciation........................... 0
---------------------------------------------------------------
Net unrealized appreciation....................... $ 501,266
---------------------------------------------------------------
</TABLE>
(b) See Note A 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.
24
<PAGE>
FORTIS SERIES FUND, INC.
HIGH YIELD SERIES
Schedule of Investments
December 31, 1995
COMMON STOCKS-0.17%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Value
Shares Cost (b) (c)
--------- -------- --------
<C> <S> <C> <C>
APPAREL-0.01%
250 Hosiery Corp. of America, Class A (a) (f).................................. $ 4,230 $2,500
-------- --------
CABLE TELEVISION-0.05%
2,500 American Telecasting, Inc. (Warrants) (a).................................. 5,000 14,375
-------- --------
CONSUMER GOODS-0.00%
200 Chattem, Inc. (Warrants) (a) (f)........................................... 2,546 200
-------- --------
CONTAINERS AND PACKAGING-0.02%
500 RXI Holdings, Inc. (Warrants) (a) (f)...................................... 9,760 5,000
-------- --------
MACHINERY-0.02%
250 MVE, Inc. (Warrants) (a)................................................... 1,719 5,000
750 Terex Corp. (Rights) (a)................................................... 1,875 75
-------- --------
3,594 5,075
-------- --------
RETAIL-GROCERY-0.04%
1,651 Grand Union Co. (a)........................................................ 99,110 12,383
-------- --------
RETAIL-MISCELLANEOUS-0.03%
250 Petro PSC Properties, L.P. (Warrants) (a).................................. 9,142 8,000
-------- --------
STEEL AND IRON-0.00%
250 Gulf States Steel Corp. (Warrants) (a) (f)................................. 2,730 1,000
-------- --------
TOTAL COMMON STOCKS........................................................ $136,112 $48,533
-------- --------
-------- --------
</TABLE>
CORPORATE BONDS-INVESTMENT GRADE-1.85%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
--------- ------------ --------- ---------
<C> <S> <C> <C> <C>
HOTEL AND MOTEL-1.85%
$500,000 Renaissance Hotel Group Finance Corp., 8.875% 10-1-2005.................... BBB $499,518 $520,000
--------- ---------
</TABLE>
CORPORATE BONDS-NON-INVESTMENT GRADE-90.82%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
----------- ----------- ----------- -----------
<C> <S> <C> <C> <C>
AEROSPACE AND EQUIPMENT-0.95%
$ 250,000 K & F Industries, Inc., 11.875% Sr Secured Note 12-1-2003.................. B+ $ 235,500 $ 268,125
----------- -----------
AIRLINES-1.66%
500,000 U.S. Air, Inc., 10.375% Pass Thru Certificate 3-1-2013..................... B+ 466,250 467,260
----------- -----------
BROADCASTING-5.31%
500,000 Argyle Television, 9.75% Sr Sub Note 11-01-2005............................ B- 500,000 495,000
250,000 Commodore Media, Inc., 12.71% Sr Sub Note 5-1-2003......................... B3* 228,054 236,250
250,000 EZ Communications, Inc., 9.75% Sr Sub Note 12-1-2005....................... B- 248,036 251,250
500,000 Sinclair Broadcasting, Inc., 10.00% Sr Sub Note 9-30-2005.................. B+ 500,000 511,250
----------- -----------
1,476,090 1,493,750
----------- -----------
CABLE TELEVISION-13.33%
250,000 Adelphia Communications Corp., 12.50% Sr Note 5-15-2002.................... B 239,375 243,750
537,895 American Telecasting, Inc., 14.36% Sr Sub Disc Note 6-15-2004 (Zero coupon
until 6-15-1999) (e)..................................................... CCC+ 317,810 369,803
500,000 Australis Media Ltd., 9.31% Sr Sub Note 5-15-2003 (Zero coupon until
5-15-2000) (and warrants) (e)............................................ CCC 378,549 362,500
500,000 Comcast Corp., 9.375% Sr Sub Deb 5-15-2005................................. B+ 510,045 521,250
250,000 Comcast UK Cable Ltd., 11.20% Sr Disc Deb 11-15-2007 (Zero coupon until
11-15-2000) (e).......................................................... B 147,310 146,250
500,000 Continental Cablevision, Inc., 8.30% Sr Deb 5-15-2006 (f).................. BB+ 500,000 500,000
287,439 Falcon Holding Group, L.P., 11.00% Sr Sub Note Ser B 9-15-2003 (Interest is
Payable-in-Kind)......................................................... NR 252,279 265,798
</TABLE>
25
<PAGE>
FORTIS SERIES FUND, INC.
HIGH YIELD SERIES (CONTINUED)
Schedule of Investments
December 31, 1995
CORPORATE BONDS-NON-INVESTMENT GRADE-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
----------- ----------- ----------- -----------
<C> <S> <C> <C> <C>
$ 250,000 Telewest plc, 9.625% Sr Deb 10-1-2006...................................... BB $ 250,000 $ 254,063
750,000 United International Holdings, Inc., 14.00% Sr Secured Zero Coupon Note Ser
B 11-15-1999 (e)......................................................... B- 446,720 465,000
1,000,000 Videotron Holdings plc, 11.67% Sr Disc Note 8-15-2005 (Zero coupon until
8-15-2000) (e)........................................................... B+ 581,107 620,000
----------- -----------
3,623,195 3,748,414
----------- -----------
CHEMICALS-3.77%
250,000 Acetex Corp., 9.75% Sr Secured Note 10-1-2003 (f).......................... BB- 248,907 260,000
500,000 LaRoche Industries, Inc., 13.00% Sr Sub Note 8-15-2004..................... B 523,125 532,500
250,000 NL Industries, Inc., 11.75% Sr Secured Note 10-15-2003..................... B 237,500 266,875
----------- -----------
1,009,532 1,059,375
----------- -----------
CONTAINERS AND PACKAGING-2.62%
500,000 RXI Holdings, Inc., 14.00% Sr Secured Note 7-15-2002 (f)................... B- 495,239 472,500
250,000 Silgan Corp., 11.75% Sr Sub Note 6-15-2002................................. B- 263,750 266,250
----------- -----------
758,989 738,750
----------- -----------
COSMETICS AND SUNDRIES-1.82%
500,000 Revlon Consumer Products Corp., 10.50% Sr Sub Note 2-15-2003............... B- 506,250 512,500
----------- -----------
FOOD-MISCELLANEOUS-3.28%
500,000 Curtice-Burns Foods, Inc., 12.25% Sr Sub Note 2-1-2005..................... B 531,250 510,000
250,000 Envirodyne Industries, Inc., 12.00% First Priority Sr Secured Note
6-15-2000................................................................ NR 248,125 241,250
200,000 Specialty Foods Corp., 11.25% Sr Sub Note 8-15-2003........................ B- 172,000 171,000
----------- -----------
951,375 922,250
----------- -----------
HEALTH CARE SERVICES-2.80%
500,000 Abbey Healthcare Group, 9.50% Sr Sub Note 11-1-2002........................ BB+ 526,250 530,000
250,000 Ivac Corp., 9.25% Sr Note 12-1-2002........................................ BB 250,000 256,250
----------- -----------
776,250 786,250
----------- -----------
HOTEL AND MOTEL-1.82%
500,000 Host Marriott Properties, Inc., 9.50% Sr Note 5-15-2005.................... BB- 483,330 510,625
----------- -----------
HOUSING-3.48%
500,000 MDC Holdings, Inc., 11.125% Note 12-15-2003................................ B 481,250 477,500
500,000 NVR, Inc., 11.00% Sr Note 4-15-2003........................................ B 500,937 502,500
----------- -----------
982,187 980,000
----------- -----------
LEISURE TIME-AMUSEMENTS-13.11%
500,000 Bally's Park Place, Inc., 9.25% First Mtg Bond 3-15-2004................... BB 472,693 505,000
250,000 Capital Gaming International, Inc., 11.50% Secured Note 2-1-2001 (a)....... Caa* 197,500 125,000
500,000 Casino Magic Finance Corp., 11.50% First Mtg Note Cl B 10-15-2001.......... B+ 428,437 430,000
250,000 GNF Corp., 10.625% First Mtg Note 4-1-2003................................. BB 205,042 231,250
500,000 Grand Casinos, Inc., 10.125% First Mtg Bond 12-1-2003...................... BB 510,000 521,250
500,000 Hollywood Casino Corp., 12.75% Sr Secured Note 11-1-2003................... B+ 476,397 457,500
500,000 Players International, Inc., 10.875% Sr Note 4-15-2005..................... BB 497,500 467,500
250,000 Trump Castle Funding, Inc., 11.75% First Mtg Bond 11-15-2003............... Caa* 150,500 217,500
250,000 Trump Plaza Funding, Inc., 10.875% First Mtg Note 6-15-2001................ B+ 195,050 258,750
503,950 Trump Taj Mahal Funding, Inc., 11.35% First Mtg Note 11-15-1999 (Interest
is 9.375% cash and 1.975% Payable-in-Kind)............................... Caa* 425,553 473,478
----------- -----------
3,558,672 3,687,228
----------- -----------
MACHINERY-1.59%
250,000 MVE, Inc., 12.50% Sr Secured Note 2-15-2002................................ B+ 248,427 246,250
200,000 Spreckels Industries, Inc., 11.50% Sr Secured Note 9-1-2000................ B 197,250 200,000
----------- -----------
445,677 446,250
----------- -----------
METALS-MINING AND MISCELLANEOUS-3.89%
400,000 Haynes International, Inc., 11.25% Sr Secured Note Ser A 6-15-1998......... CCC+ 372,250 388,000
250,000 Haynes International, Inc., 13.50% Sr Sub Deb 8-15-1999.................... CCC- 157,500 167,500
500,000 Renco Metals, Inc., 12.00% Sr Note 7-15-2000............................... B+ 505,312 540,000
----------- -----------
1,035,062 1,095,500
----------- -----------
</TABLE>
26
<PAGE>
CORPORATE BONDS-NON-INVESTMENT GRADE-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
----------- ----------- ----------- -----------
<C> <S> <C> <C> <C>
MISCELLANEOUS-0.76%
$ 250,000 Jordan Industries, Inc., 10.375% Sr Note 8-1-2003.......................... B+ $ 236,562 $ 212,500
----------- -----------
OFFICE EQUIPMENT AND SUPPLIES-0.68%
200,000 Mail-Well Corp., 10.50% Sr Sub Note 2-15-2004.............................. B 179,625 192,000
----------- -----------
PRINTING-0.53%
250,000 U.S. Banknote Corp., 11.625% Sr Note Ser B 8-1-2002........................ B- 245,086 150,000
----------- -----------
PUBLISHING-1.24%
500,000 Marvel (Parent) Holdings, Inc., 12.43% Sr Secured Zero Coupon Disc Note
4-15-1998 (e)............................................................ B 362,667 350,000
----------- -----------
RESTAURANTS AND FRANCHISING-0.63%
250,000 Flagstar Corp., 11.25% Sr Sub Deb 11-1-2004................................ CCC+ 230,375 177,500
----------- -----------
RETAIL-GROCERY-7.70%
250,000 Bruno's, Inc., 10.50% Sr Sub Note 8-1-2005................................. B- 244,375 246,875
500,000 Dominick's Finer Foods, Inc., 10.875% Sr Sub Note 5-1-2005................. B- 511,250 527,500
535,625 Farm Fresh Holdings Corp., 14.25% Sr Note 10-1-2002 (Interest is
Payable-in-Kind thru 10-1-1997) (f)...................................... CCC+ 215,085 221,092
250,000 Farm Fresh, Inc., 12.25% Sr Note 10-1-2000................................. B- 231,500 205,000
250,000 Grand Union Co., 12.00% Sr Note 9-1-2004 (a)............................... B- 242,187 216,250
266,930 Kash N Karry Corp., 11.50% Sr Note 2-1-2003 (Interest is
Payable-in-Kind)......................................................... B- 228,720 262,209
500,000 Ralphs Grocery Co., 11.00% Sr Sub Note 6-15-2005........................... B- 484,375 487,500
----------- -----------
2,157,492 2,166,426
----------- -----------
RETAIL-MISCELLANEOUS-1.90%
500,000 Thrifty Payless, Inc., 12.25% Sr Sub Note 4-15-2004........................ B- 508,438 535,000
----------- -----------
STEEL AND IRON-1.77%
250,000 AK Steel Corp., 10.75% Sr Note 4-1-2004.................................... BB- 268,750 276,875
250,000 Gulf States Steel Corp., 13.50% First Mtg Note 4-15-2003................... B 247,270 220,625
----------- -----------
516,020 497,500
----------- -----------
TECHNOLOGY-2.76%
500,000 Computervision Corp., 11.375% Sr Sub Note 8-15-1999........................ B- 449,563 527,500
250,000 Genicom Corp., 12.50% Sr Sub Note 2-15-1997................................ NR 226,500 248,750
----------- -----------
676,063 776,250
----------- -----------
TELECOMMUNICATIONS-10.18%
250,000 A+ Network, Inc., 11.875% 11-1-2005........................................ CCC+ 248,205 251,875
1,000,000 American Communications Services, Inc., 13.00% Sr Disc Note 11-1-2005 (Zero
coupon until 11-1-2000) (and warrants) (e) (f)........................... NR 545,332 552,500
500,000 Clearnet Communications, Inc., 14.75% Sr Disc Note 12-15-2005 (Zero coupon
until 12-15-2000) (and warrants) (e)..................................... B3* 247,054 261,250
250,000 Fonorola, Inc., 12.50% Sr Secured Note 8-15-2002........................... B+ 250,000 262,500
900,000 GST Telecommunications, Inc., 13.875% 12-15-2005 (Zero coupon until
12-15-2000, thereafter 13.875%) (Includes 800,000 principal of Sr Disc
Note and 100,000 principal of Convertible Sr Sub Note) (e) (f)........... NR 461,979 475,000
500,000 Mobilemedia Corp., 9.375% Sr Sub Note 11-1-2007............................ B- 500,000 515,000
500,000 Paging Network, Inc., 10.125% Sr Sub Note 8-1-2007......................... B 506,250 544,375
----------- -----------
2,758,820 2,862,500
----------- -----------
TOBACCO-1.46%
500,000 Liggett Group, Inc., 11.50% Secured Note Ser B 2-1-1999.................... NR 352,500 410,000
----------- -----------
TRANSPORTATION-0.43%
128,667 Fruehauf Trailer Corp., 14.75% Sr Secured Note 4-30-2002................... NR 124,164 122,234
----------- -----------
WASTE DISPOSAL-1.35%
375,000 Norcal Waste Systems, Inc., 13.00% Increasing Rate Sr Note 11-15-2005 (e)
(f)...................................................................... BB- 365,165 378,750
----------- -----------
TOTAL CORPORATE BONDS - NON-INVESTMENT GRADE............................... 25,021,336 25,546,937
----------- -----------
TOTAL CORPORATE BONDS...................................................... 25,520,854 26,066,937
----------- -----------
TOTAL LONG-TERM INVESTMENTS................................................ $25,656,966 $26,115,470
----------- -----------
----------- -----------
</TABLE>
27
<PAGE>
FORTIS SERIES FUND, INC.
HIGH YIELD SERIES (CONTINUED)
Schedule of Investments
December 31, 1995
SHORT-TERM INVESTMENTS-4.97%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
----------- ------------
<C> <S> <C>
BANKS-4.34%
$1,220,000 First Trust Money Market Variable Rate Time Deposit, Current
rate -- 5.51%............................................................ $ 1,220,000
------------
DIVERSIFIED FINANCE-0.63%
177,000 Associates Corp. Master Variable Rate Note, Current rate -- 5.52%.......... 177,000
------------
TOTAL SHORT-TERM INVESTMENTS............................................... 1,397,000
------------
TOTAL INVESTMENTS IN SECURITIES (COST: $27,053,966) (B).................... $27,512,470
------------
------------
</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 December 31, 1995, the cost of securities for federal income tax
purposes was $27,055,341 and the aggregate gross unrealized appreciation
and depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation........................... $ 1,041,346
Unrealized depreciation........................... (584,217)
---------------------------------------------------------------
Net unrealized appreciation....................... $ 457,129
---------------------------------------------------------------
</TABLE>
(c) See Note A of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets. Market value of investments in foreign
securities represents 7.70% of net assets as of December 31, 1995.
(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>
June 10, 1994 200 Chattem, Inc. (Warrants) $ 2,546
October 7, 1994 250 Hosiery Corp. of America, Class A 4,230
February 3, 1995 250 RXI Holdings, Inc. (Warrants) 4,838
February 3, 1995 250,000 RXI Holdings, Inc. due 2002 245,521
March 30, 1995 500,000 Farm Fresh Holdings Corp. due 2002 200,817
April 13, 1995 250 Gulf States Steel Corp. (Warrants) 2,730
May 11, 1995 250 RXI Holdings, Inc. (Warrants) 4,922
May 11, 1995 250,000 RXI Holdings, Inc. due 2002 249,718
September 12, 1995 35,625 Farm Fresh Holdings Corp. due 2002 14,268
September 22, 1995 250,000 Acetex Corp. due 2003 248,907
American Communications Services, Inc. due
November 10,1995 1,000,000 2005 545,332
November 16, 1995 375,000 Norcal Waste Systems, Inc. due 2005 365,165
December 14, 1995 900,000 GST Telecommunications, Inc. due 2005 461,979
December 22, 1995 500,000 Continental Cablevision, Inc. due 2006 500,000
</TABLE>
The value of these securities at December 31, 1995, is $2,868,542 which
respresents 10.20% of net assets.
28
<PAGE>
FORTIS SERIES FUND, INC.
ASSET ALLOCATION SERIES
Schedule of Investments
December 31, 1995
COMMON STOCKS-45.23%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
BROADCASTING - 0.51%
81,000 News Corp., Ltd. ADR (The)................................................. $ 1,417,712 $ 1,731,375
------------ ------------
BUSINESS SERVICES AND SUPPLIES - 3.24%
109,757 First Data Corp............................................................ 4,017,764 7,339,999
101,000 MBNA Corp.................................................................. 2,232,557 3,724,375
------------ ------------
6,250,321 11,064,374
------------ ------------
COMPUTER-HARDWARE - 0.93%
77,000 Ceridian Corp. (a)......................................................... 3,430,447 3,176,250
------------ ------------
COMPUTER-SOFTWARE - 4.75%
50,000 Adobe Systems, Inc......................................................... 3,454,542 3,100,000
61,500 Computer Associates International, Inc..................................... 2,234,208 3,497,812
50,250 Microsoft Corp. (a)........................................................ 2,137,288 4,409,437
123,300 Oracle Corp. (a)........................................................... 772,270 5,224,837
------------ ------------
8,598,308 16,232,086
------------ ------------
ELECTRONIC-COMMUNICATION SECURITY - 0.84%
70,000 Bay Networks, Inc. (a)..................................................... 2,924,051 2,878,750
------------ ------------
ELECTRONIC-CONTROLS AND EQUIPMENT - 1.70%
88,000 Applied Materials, Inc. (a)................................................ 1,719,115 3,465,000
53,000 Solectron Corp. (a)........................................................ 2,013,540 2,338,625
------------ ------------
3,732,655 5,803,625
------------ ------------
ELECTRONIC-SEMICONDUCTOR AND CAPACITOR - 1.12%
46,600 Intel Corp................................................................. 1,359,206 2,644,550
30,000 Micron Technology, Inc..................................................... 2,550,927 1,188,750
------------ ------------
3,910,133 3,833,300
------------ ------------
FINANCE COMPANIES - 3.08%
32,000 Federal National Mortgage Association...................................... 2,856,973 3,972,000
36,000 Franklin Resources, Inc.................................................... 1,472,500 1,813,500
178,996 Green Tree Financial Corp.................................................. 2,421,448 4,721,019
------------ ------------
6,750,921 10,506,519
------------ ------------
HEALTH CARE SERVICES - 5.12%
78,000 Columbia/HCA Healthcare Corp............................................... 3,217,046 3,958,500
52,000 Oxford Health Plans, Inc. (a).............................................. 3,820,827 3,841,500
27,400 PacifiCare Health Systems, Inc. Class B (a)................................ 1,670,488 2,383,800
82,000 U.S. HealthCare, Inc....................................................... 2,929,688 3,813,000
53,400 United Healthcare Corp..................................................... 2,490,580 3,497,700
------------ ------------
14,128,629 17,494,500
------------ ------------
HOTEL AND MOTEL - 0.87%
85,750 Mirage Resorts, Inc. (a)................................................... 1,933,090 2,958,375
------------ ------------
LEISURE TIME-AMUSEMENTS - 0.66%
38,000 Disney (Walt) Co........................................................... 2,095,090 2,242,000
------------ ------------
MEDICAL SUPPLIES - 1.03%
63,200 Medtronic, Inc. (and rights)............................................... 2,186,423 3,531,300
------------ ------------
MEDICAL TECHNOLOGY - 1.12%
77,900 Boston Scientific Corp. (a)................................................ 3,181,528 3,817,100
------------ ------------
MISCELLANEOUS - 0.86%
86,100 CUC International, Inc. (a)................................................ 1,409,916 2,938,163
------------ ------------
OFFICE EQUIPMENT AND SUPPLIES - 2.67%
106,000 Silicon Graphics, Inc. (a)................................................. 1,597,487 2,915,000
65,000 Sterling Software, Inc..................................................... 1,601,021 4,054,375
51,900 Tandy Corp................................................................. 2,281,100 2,153,850
------------ ------------
5,479,608 9,123,225
------------ ------------
</TABLE>
29
<PAGE>
FORTIS SERIES FUND, INC.
ASSET ALLOCATION SERIES (CONTINUED)
Schedule of Investments
December 31, 1995
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
PUBLISHING - 0.83%
36,300 Scholastic Corp. (a)....................................................... $ 1,851,033 $ 2,822,325
------------ ------------
RETAIL-DEPARTMENT STORES - 1.29%
41,600 Kohl's Corp. (a)........................................................... 1,624,870 2,184,000
100,000 Wal-Mart Stores, Inc....................................................... 2,479,410 2,237,500
------------ ------------
4,104,280 4,421,500
------------ ------------
RETAIL-MISCELLANEOUS - 4.19%
85,600 AutoZone, Inc. (a)......................................................... 1,881,356 2,471,700
41,500 Home Depot, Inc............................................................ 1,353,846 1,986,813
82,000 Lowe's Companies, Inc...................................................... 1,666,017 2,747,000
68,100 Office Depot, Inc. (a)..................................................... 821,547 1,344,975
45,500 Pep Boys Manny Moe & Jack.................................................. 1,106,736 1,165,938
184,000 Price/Costco, Inc. (a)..................................................... 3,220,214 2,806,000
62,000 Talbots (The), Inc......................................................... 1,580,882 1,782,500
------------ ------------
11,630,598 14,304,926
------------ ------------
TELECOMMUNICATIONS - 6.78%
144,000 3Com Corp. (a)............................................................. 1,219,554 6,714,000
59,400 Cisco Systems, Inc. (a).................................................... 1,486,066 4,432,725
220,000 Ericsson (L.M.) Telephone Co. Class B ADR.................................. 2,657,302 4,290,000
40,000 Motorola, Inc.............................................................. 1,197,452 2,280,000
63,600 Nokia Corp. Class A ADR.................................................... 1,300,065 2,472,450
80,000 Tellabs, Inc. (a).......................................................... 3,238,695 2,960,000
------------ ------------
11,099,134 23,149,175
------------ ------------
TELEPHONE SERVICES - 1.21%
116,994 WorldCom, Inc. (a)......................................................... 1,880,775 4,124,039
------------ ------------
TOYS - 1.22%
135,721 Mattel, Inc................................................................ 2,566,901 4,173,421
------------ ------------
UTILITIES-TELEPHONE - 1.21%
83,200 AirTouch Communications, Inc. (a).......................................... 2,101,440 2,350,400
51,000 Vodafone Group plc ADR..................................................... 1,618,683 1,797,750
------------ ------------
3,720,123 4,148,150
------------ ------------
TOTAL COMMON STOCKS........................................................ $104,281,676 $154,474,478
------------ ------------
</TABLE>
PREFERRED STOCKS-0.41%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
------- ----------- -----------
<C> <S> <C> <C>
BROADCASTING - 0.41%
73,000 News Corp., Ltd.(The) Preferred ADR........................................ $1,262,907 $1,405,250
----------- -----------
</TABLE>
ASSET BACKED SECURITIES-9.47%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
----------- ------------ ------------ ------------
<C> <S> <C> <C> <C>
COMMERCIAL LOANS - 2.06%
$3,279,112 Merrill Lynch Mortgage Investors, Inc., 7.522% Variable Rate Ser 1995-C2 Cl
A 6-15-2021.............................................................. Aaa* $ 3,328,811 $ 3,380,047
2,617,023 Resolution Trust Corp., 7.15% Mtg Pass Thru Certificate Ser 1995-2 Cl M1
5-25-2029................................................................ Aa2* 2,610,162 2,650,553
1,000,000 Resolution Trust Corp., 7.45% Mtg Pass Thru Certificate Ser 1995-2 Cl A1C
5-25-2029................................................................ Aaa* 994,773 1,011,875
------------ ------------
6,933,746 7,042,475
------------ ------------
</TABLE>
30
<PAGE>
ASSET BACKED SECURITIES-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
----------- ------------ ------------ ------------
<C> <S> <C> <C> <C>
MANUFACTURED HOMES - 5.09%
$2,874,156 CIT Group Manufactured Housing Contract, 7.70% Sr Sub Pass Thru Certificate
Ser 1995-1 Cl A 5-15-2020................................................ Aaa* $ 2,873,239 $ 2,963,109
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 4,350,000
3,000,000 Green Tree Financial Corp., 8.35% Ser 1994-7 Cl A4 3-15-2020............... Aaa* 2,996,250 3,254,670
6,500,000 Oakwood Mtg Investors, Inc., 7.10% Ser 1995-A Cl A3 9-15-2020.............. AAA 6,500,937 6,829,849
------------ ------------
16,440,739 17,397,628
------------ ------------
MISCELLANEOUS - 0.95%
3,198,327 Vanderbilt Mtg & Finance, Inc., 7.00% Mfg Housing Contract Ser 1994-A Cl A1
7-10-2019................................................................ AA 3,196,328 3,245,563
------------ ------------
MULTI-FAMILY LOANS - 1.37%
1,500,000 DLJ Mtg Acceptance Corp., 8.80% Multifamily Mtg Pass Thru Certificate Ser
1993-12 Cl B1 9-18-2003.................................................. NR 1,473,750 1,582,525
3,000,000 Paine Webber Mortgage Acceptance Corp. IV, 6.70% Ser 1995-M1 1-15-2007
(e)...................................................................... NR 3,001,875 3,082,500
------------ ------------
4,475,625 4,665,025
------------ ------------
TOTAL ASSET BACKED SECURITIES.............................................. $31,046,438 $32,350,691
------------ ------------
</TABLE>
CORPORATE BONDS-INVESTMENT GRADE-9.73%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
----------- ------------ ------------ ------------
<C> <S> <C> <C> <C>
BANKS - 2.85%
$4,000,000 Advanta National Bank, 6.45% Note 10-30-2000............................... BBB $ 3,995,119 $ 4,048,976
5,500,000 Capital One Bank, 6.83% Med Term Note 8-16-1999............................ Ba3* 5,500,000 5,655,424
------------ ------------
9,495,119 9,704,400
------------ ------------
BROKERAGE AND INVESTMENT - 1.06%
3,500,000 Bear Stearns & Co., 6.875% 10-01-2005...................................... A 3,476,060 3,604,310
------------ ------------
CHEMICALS - 0.76%
2,500,000 Methanex Corp., 7.40% Note 8-15-2002....................................... BBB+ 2,488,580 2,597,407
------------ ------------
FOREIGN - GOVERNMENT AGENCIES - 2.00%
6,000,000 Hydro-Quebec, 8.05% Deb 7-7-2024........................................... A+ 6,597,660 6,845,574
------------ ------------
HOTEL AND MOTEL - 0.61%
2,000,000 Renaissance Hotel Group Finance Corp., 8.875% 10-1-2005.................... BBB 1,998,071 2,080,000
------------ ------------
MEDIA - 0.32%
400,000 News America Holdings, Inc., 10.125% Sr Note 10-15-2012.................... BBB 400,000 485,434
500,000 News America Holdings, Inc., 8.963% Sr Note 4-26-2023 (d).................. BBB 495,850 594,779
------------ ------------
895,850 1,080,213
------------ ------------
MISCELLANEOUS - 0.08%
250,000 New York (City of), 10.00% General Obligation Taxable Bond Fiscal 1991 Ser
D 8-1-2005............................................................... BBB+ 236,086 287,726
------------ ------------
WASTE DISPOSAL - 2.05%
6,500,000 Browning-Ferris, Inc., 7.40% Secured Note 9-15-2035........................ A 6,465,225 7,013,234
------------ ------------
TOTAL CORPORATE BONDS - INVESTMENT GRADE................................... $31,652,651 $33,212,864
------------ ------------
</TABLE>
31
<PAGE>
FORTIS SERIES FUND, INC.
ASSET ALLOCATION SERIES (CONTINUED)
Schedule of Investments
December 31, 1995
CORPORATE BONDS-NON-INVESTMENT GRADE-6.80%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
----------- ------------ ------------ ------------
<C> <S> <C> <C> <C>
BROADCASTING - 0.30%
$1,000,000 Sinclair Broadcasting, Inc., 10.00% Sr Sub Note 9-30-2005.................. B+ $ 1,000,000 $ 1,022,500
------------ ------------
CABLE TELEVISION - 1.06%
1,000,000 Comcast Corp., 9.125% Sr Sub Note 10-15-2006............................... B+ 1,033,759 1,040,000
250,000 Continental Cablevision, 8.30% Sr Note 5-15-2006 (e)....................... BB+ 250,000 250,000
1,113,025 Falcon Holding Group L.P., 11.00% Sr Sub Note Ser B 9-15-2003 (Interest is
Payable-in-Kind)......................................................... NR 899,866 1,029,229
500,000 Telewest plc, 11.00% Sr Disc Deb 10-1-2007 (Zero coupon until 10-1-2000)
(d)...................................................................... BB 301,171 300,625
1,000,000 Telewest plc, 9.625% Sr Deb 10-1-2006...................................... BB 1,004,687 1,016,250
------------ ------------
3,489,483 3,636,104
------------ ------------
CHEMICALS - 0.91%
1,250,000 Arcadian Partners L.P., 10.75% Sr Note Ser B 5-1-2005...................... BB- 1,245,361 1,375,000
500,000 Indspec Chemical Corp., 12.618% Sr Sub Disc Note Ser B 12-1-2003 (d)....... B- 326,235 413,750
1,250,000 NL Industries, Inc., 11.75% Sr Secured Note 10-15-2003..................... B 1,187,500 1,334,375
------------ ------------
2,759,096 3,123,125
------------ ------------
COSMETICS AND SUNDRIES - 0.30%
1,000,000 Revlon Consumer Products Corp., 10.50% Sr Sub Note 2-15-2003............... B- 1,020,312 1,025,000
------------ ------------
ENERGY - 0.33%
1,082,289 Midland Cogeneration Venture L.P., 10.33% Midland Funding Sr Secured Lease
Obligation Bond Ser C 7-23-2002.......................................... BB- 1,101,998 1,141,370
------------ ------------
FOOD-GROCERY, MISCELLANEOUS - 0.28%
1,000,000 Specialty Foods Corp., 10.25% Sr Note Ser B 8-15-2001...................... B 991,250 940,000
------------ ------------
FOOD-MISCELLANEOUS - 0.42%
1,500,000 Envirodyne Industries, Inc., 12.00% First Priority Sr Secured Note
6-15-2000................................................................ NR 1,498,125 1,447,500
------------ ------------
HEALTH CARE SERVICES - 0.31%
1,000,000 Tenet Healthcare Corp., 8.625% Sr Note 12-1-2003........................... BB- 996,721 1,055,000
------------ ------------
HOTEL AND MOTEL - 0.15%
500,000 HMC Acquisition Properties, 9.00% Sr Note 12-15-2007 (e)................... BB- 500,000 500,000
------------ ------------
INDUSTRIAL - 0.06%
250,000 American Standard, Inc., 9.45% Sr Sub Deb 6-1-2005 (Zero coupon until
6-1-1998) (d)............................................................ B+ 211,413 213,750
------------ ------------
LEISURE TIME-AMUSEMENTS - 0.30%
1,000,000 Bally's Park Place, Inc., 9.25% First Mtg Bond 3-15-2004................... BB 945,385 1,010,000
------------ ------------
MACHINERY - 0.29%
1,000,000 Spreckels Industries, Inc., 11.50% Sr Secured Note 9-1-2000................ B 986,250 1,000,000
------------ ------------
METALS-MINING AND MISCELLANEOUS - 0.32%
1,000,000 Renco Metals, Inc., 12.00% Sr Note 7-15-2000............................... B+ 1,082,500 1,080,000
------------ ------------
OFFICE EQUIPMENT AND SUPPLIES - 0.21%
750,000 Mail-Well Corp., 10.50% Sr Sub Note 2-15-2004.............................. B 665,625 720,000
------------ ------------
RESTAURANTS AND FRANCHISING - 0.26%
1,250,000 Flagstar Corp., 11.25% Sr Sub Deb 11-1-2004................................ CCC+ 1,265,937 887,500
------------ ------------
RETAIL-GROCERY - 0.65%
1,250,000 Farm Fresh, Inc., 12.25% Sr Note 10-1-2000................................. B- 1,250,063 1,025,000
250,000 Grand Union Co., 12.00% Sr Note 9-1-2004 (a)............................... B- 236,875 216,250
1,000,000 Ralphs Grocery Co., 11.00% Sr Sub Note 6-15-2005........................... B- 980,000 975,000
------------ ------------
2,466,938 2,216,250
------------ ------------
STEEL AND IRON - 0.08%
250,000 AK Steel Corp., 10.75% Sr Note 4-1-2004.................................... BB- 268,750 276,875
------------ ------------
TECHNOLOGY - 0.31%
1,000,000 Computervision Corp., 11.375% Sr Sub Note 8-15-1999........................ B- 1,033,750 1,055,000
------------ ------------
TELECOMMUNICATIONS - 0.08%
250,000 Paging Network, Inc., 10.125% Sr Sub Note 8-1-2007......................... B 252,813 272,188
------------ ------------
</TABLE>
32
<PAGE>
CORPORATE BONDS-NON-INVESTMENT GRADE-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
----------- ------------ ------------ ------------
<C> <S> <C> <C> <C>
TOBACCO - 0.18%
$ 750,000 Liggett Group, Inc., 11.50% Secured Note Ser B 2-1-1999.................... NR $ 546,875 $ 615,000
------------ ------------
TOTAL CORPORATE BONDS - NON-INVESTMENT GRADE............................... $23,083,221 $23,237,162
------------ ------------
</TABLE>
U.S. GOVERNMENT SECURITIES-23.56%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Cost (b) Value (c)
----------- ------------- -------------
<C> <S> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 10.67%
MORTGAGE BACKED SECURITIES:
$5,941,671 6.50% 2010................................................................. $ 5,888,753 $ 5,971,379
6,092,536 7.00% 2025................................................................. 5,998,576 6,140,131
5,722,124 7.25% 2005................................................................. 5,925,975 6,037,986
2,157,743 7.50% 2022................................................................. 2,230,230 2,210,338
1,944,134 8.00% 2025................................................................. 1,973,600 2,012,786
73,138 9.00% 2021................................................................. 72,978 77,024
------------- -------------
22,090,112 22,449,644
------------- -------------
NOTES:
2,000,000 6.85% 2000................................................................. 2,000,000 2,078,802
3,500,000 7.40% 2004................................................................. 3,692,825 3,859,191
5,000,000 7.84% 1998................................................................. 5,033,550 5,019,960
------------- -------------
10,726,375 10,957,953
------------- -------------
REMIC-PAC'S:
3,000,000 7.00% 2020................................................................. 2,892,344 3,042,387
------------- -------------
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION................................ 35,708,831 36,449,984
------------- -------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 3.83%
MORTGAGE BACKED SECURITIES:
6,107,076 7.50% 2022-2023............................................................ 5,935,433 6,278,837
5,275,167 9.00% 2022-2023............................................................ 5,446,610 5,586,729
1,080,090 9.125% Fleet Mortgage Securities Ser 1989-3 Class D 2018 (GNMA Backed)..... 1,105,742 1,103,603
98,759 9.50% 2020................................................................. 98,512 105,950
------------- -------------
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION............................. 12,586,297 13,075,119
------------- -------------
OTHER DIRECT FEDERAL OBLIGATIONS - 3.21%
FEDERAL HOME LOAN BANK:
6,000,000 6.125% 1996................................................................ 5,984,063 6,027,510
4,500,000 7.31% 2004................................................................. 4,516,172 4,920,615
------------- -------------
TOTAL OTHER DIRECT FEDERAL OBLIGATIONS..................................... 10,500,235 10,948,125
------------- -------------
OTHER GOVERNMENT AGENCIES - 0.46%
RESOLUTION FUNDING CORPORATION:
5,000,000 7.415% Zero Coupon Strip 2014 (d).......................................... 1,296,153 1,570,445
------------- -------------
U.S. TREASURY SECURITIES - 5.39%
BONDS:
4,450,000 7.625% 2025................................................................ 4,928,375 5,437,344
2,050,000 8.125% 2021................................................................ 2,495,117 2,594,531
------------- -------------
7,423,492 8,031,875
------------- -------------
NOTES:
2,700,000 6.875% 2025................................................................ 2,909,250 3,045,937
2,800,000 7.25% 1996................................................................. 2,815,313 2,835,000
1,850,000 8.25% 1998................................................................. 1,956,086 1,980,075
</TABLE>
33
<PAGE>
FORTIS SERIES FUND, INC.
ASSET ALLOCATION SERIES (CONTINUED)
Schedule of Investments
December 31, 1995
U.S. GOVERNMENT SECURITIES-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Cost (b) Value (c)
----------- ------------- -------------
<C> <S> <C> <C>
$2,500,000 9.375% 1996................................................................ $ 2,752,344 $ 2,529,688
------------- -------------
10,432,993 10,390,700
------------- -------------
TOTAL U.S. TREASURY SECURITIES............................................. 17,856,485 18,422,575
------------- -------------
TOTAL U.S. GOVERNMENT SECURITIES........................................... 77,948,001 80,466,248
------------- -------------
TOTAL LONG-TERM DEBT SECURITIES............................................ 163,730,311 169,266,965
------------- -------------
TOTAL LONG-TERM INVESTMENTS................................................ $ 269,274,894 $ 325,146,693
------------- -------------
------------- -------------
</TABLE>
SHORT-TERM INVESTMENTS-3.96%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
----------- ------------
<C> <S> <C>
BANKS - 1.11%
$3,776,000 First Trust Money Market Variable Rate Time Deposit, Current
rate -- 5.51%............................................................ $ 3,776,000
------------
BROKERAGE AND INVESTMENT-0.23%
796,000 Goldman Sachs Master Variable Rate Note, Current rate -- 5.94%............. 796,000
------------
DIVERSIFIED FINANCE-0.31%
1,060,000 Associates Corp. Master Variable Rate Note, Current rate -- 5.52%.......... 1,060,000
------------
U.S. OTHER DIRECT FEDERAL OBLIGATIONS - 2.31%
7,900,000 Federal Home Loan Bank, 5.78%, 1-16-1996................................... 7,880,092
------------
TOTAL SHORT-TERM INVESTMENTS............................................... $ 13,512,092
------------
TOTAL INVESTMENTS IN SECURITIES (COST: $282,786,986) (B)................... $338,658,785
------------
------------
</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 December 31, 1995, the cost of securities for federal income tax
purposes was $282,786,986 and the aggregate gross unrealized appreciation
and depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation.......................................... $ 60,438,550
Unrealized depreciation.......................................... (4,566,751)
- -------------------------------------------------------------------------------
Net unrealized appreciation...................................... $ 55,871,799
- -------------------------------------------------------------------------------
</TABLE>
(c) See Note A of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) The interest rate disclosed for these securities represents the original
issue discount yields on the date of acquisition.
(e) Securities sold within the 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: On September 13, 1995 the portfolio
acquired $3,000,000 par of Paine Webber Mortgage Acceptance Corp. IV due
2007 with a cost basis of $3,001,875. On December 15, 1995 the portfolio
acquired $500,000 par of HMC Acquisition Properties due 2007 with a cost
basis of $500,000. On December 22, 1995 the portfolio acquired $250,000 par
of Continental Cablevision due 2006 with a cost basis of $250,000. The
value of these securities at December 31, 1995, is $3,832,500 which
represents 1.12% of net assets.
(f) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets. Market value of investments in foreign
securities represents 5.82% of net assets as of December 31, 1995.
* Moody's Rating
34
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL ASSET ALLOCATION SERIES
Schedule of Investments
December 31, 1995
COMMON STOCKS-40.64%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Value
Shares Cost (b)(e) (c)(e)
------- ----------- -----------
<C> <S> <C> <C>
AUSTRALIA - 0.54%
5,000 Brambles Industries Ltd. - Business Services and Supplies.................. $ 46,434 $ 55,790
12,000 Westpac Banking Corp. Ltd. - Banks......................................... 40,566 53,201
----------- -----------
87,000 108,991
----------- -----------
BELGIUM - 0.41%
2,000 Delhaize-Le Lion, S.A. - Retail-Miscellaneous.............................. 79,986 82,911
----------- -----------
CANADA - 0.21%
2,950 Hudson's Bay Co. - Retail-Department Stores................................ 57,925 42,449
----------- -----------
FRANCE - 2.29%
1,200 Banque Nationale de Paris (a) - Banks...................................... 47,065 54,204
180 Bongrain S.A. - Food-Grocery, Miscellaneous................................ 96,237 101,587
560 Credit Lyonnaise - Banks................................................... 35,896 26,910
983 Elf Aquitaine - Oil-Crude Petroleum and Gas................................ 71,742 72,523
250 Labinal S.A. - Aerospace and Equipment..................................... 32,307 27,759
750 PSA Peugeot Citroen S.A. - Automobile Manufacturers........................ 99,336 99,072
1,675 Valeo S.A. - Automobile and Motor Vehicle Parts............................ 74,099 77,681
----------- -----------
456,682 459,736
----------- -----------
GERMANY - 3.00%
705 Basf AG - Chemicals........................................................ 151,728 159,099
485 Bayer AG - Chemicals....................................................... 118,314 129,037
245 Karstadt AG - Retail-Department Stores..................................... 96,488 100,651
195 Mannesmann AG - Machinery.................................................. 53,318 62,194
150 Varta AG (a) - Automobile and Motor Vehicle Parts.......................... 30,186 28,820
1,700 Veba AG - Utilities-Electric............................................... 58,756 72,928
150 Volkswagen AG - Automobile Manufacturers................................... 43,858 50,410
----------- -----------
552,648 603,139
----------- -----------
HONG KONG - 0.64%
42,000 Jardine Strategic Holdings Ltd. - Miscellaneous............................ 125,663 128,520
----------- -----------
IRELAND - 0.39%
25,000 Avonmore Foods plc - Food-Grocery, Miscellaneous........................... 50,222 50,888
10,000 Green Property plc - Real Estate........................................... 21,033 26,926
----------- -----------
71,255 77,814
----------- -----------
ITALY - 0.61%
37,100 Stet Societa' Finanziaria Telefonica S.p.A. - Telecommunications........... 87,719 75,772
38,000 Telecom Italia S.p.A. - Utilities-Telephone................................ 47,368 46,518
----------- -----------
135,087 122,290
----------- -----------
JAPAN - 4.57%
4,000 Daicel Chemical Industries Ltd. - Chemicals................................ 21,751 22,763
40 East Japan Railway Co. - Transportation.................................... 195,497 194,665
5,000 Fuji Photo Film - Photographic............................................. 117,985 144,447
6,000 Hitachi Ltd. - Electronic-Controls and Equipment........................... 56,981 60,493
8,000 Kao Corp. - Household Products............................................. 91,237 99,271
10,000 Nichido Fire & Marine Insurance - Insurance................................ 81,107 80,464
2,000 Sony Corp. - Electronic-Controls and Equipment............................. 114,488 120,017
10,000 Sumitomo Rubber Industries - Automobile and Motor Vehicle Parts............ 88,145 83,566
1,000 TDK Corp. - Electric-Components and Parts.................................. 44,629 51,090
2,000 Toyo Seikan Kaisha - Containers and Packaging.............................. 66,308 59,912
----------- -----------
878,128 916,688
----------- -----------
NETHERLANDS - 2.62%
3,332 ABN-AMRO Holding NV - Banks................................................ 120,845 151,947
205 Hollandsche Beton Groep NV - Construction.................................. 31,456 31,332
1,465 Internationale Nederlanden Groep NV - Finance Companies.................... 70,287 97,972
1,500 Koninklijke PTT Nederland NV - Telephone Services.......................... 53,926 54,554
2,700 Koninklijke Van Ommeren NV - Transportation................................ 70,818 84,218
</TABLE>
35
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL ASSET ALLOCATION SERIES (CONTINUED)
Schedule of Investments
December 31, 1995
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Value
Shares Cost (b)(e) (c)(e)
------- ----------- -----------
<C> <S> <C> <C>
2,950 Philips Electronics NV (a) - Electric Products............................. $ 92,113 $ 106,738
----------- -----------
439,445 526,761
----------- -----------
SPAIN - 1.20%
12,700 Iberdrola S.A. - Utilities-Electric........................................ 76,653 116,201
9,000 Telefonica de Espana - Telecommunications.................................. 113,415 124,633
----------- -----------
190,068 240,834
----------- -----------
SWEDEN - 1.27%
12,000 Skandinaviska Enskilda Banken A Free - Banks............................... 68,607 99,589
10,000 Svenska Cellulosa B Free - Banks........................................... 135,893 155,420
----------- -----------
204,500 255,009
----------- -----------
SWITZERLAND - 3.72%
50 Ascom Holding AG (a) - Telecommunications.................................. 49,185 51,058
65 Bobst S.A. - Machinery..................................................... 79,455 101,682
150 Ciba-Geigy AG - Chemicals.................................................. 91,076 132,316
160 Forbo Holding AG - Household Products...................................... 72,668 68,553
20 Kuoni Reisen Holding AG - Leisure Time-Amusements.......................... 25,652 32,156
110 Magazine Zum Globus - Retail-Department Stores............................. 64,038 67,875
200 Nestle S.A. Registered - Food-Grocery, Miscellaneous....................... 205,447 221,787
70 SIG Schweizerische Industrie-Gesellschaft Holding AG - Machinery........... 67,152 71,177
----------- -----------
654,673 746,604
----------- -----------
UNITED KINGDOM - 2.77%
3,400 Calor Group plc - Oil-Crude Petroleum and Gas.............................. 14,749 13,514
24,000 Christian Salvesen plc - Miscellaneous..................................... 102,796 98,559
9,200 English China Clays plc - Minerals......................................... 54,804 45,280
14,700 Kwik Save Group plc - Food-Grocery, Miscellaneous.......................... 129,171 115,029
10,116 Tate & Lyle plc - Food-Grocery, Miscellaneous.............................. 69,290 74,133
7,600 Unilever plc - Consumer Goods.............................................. 147,562 156,111
20,900 WPP Group plc - Advertising-Public Relations............................... 42,868 53,217
----------- -----------
561,240 555,843
----------- -----------
UNITED STATES - 16.40%
5,000 Addington Resources, Inc. (a) - Natural Resources.......................... 49,375 73,125
1,600 Aluminum Company of America - Metals-Fabricating........................... 64,231 84,600
1,300 AMR Corp. (a) - Airlines................................................... 75,878 96,525
2,850 Bank of New York Co., Inc. - Banks......................................... 115,331 138,938
3,000 Beazer Homes USA, Inc. (a) - Manufactured Homes............................ 43,950 61,875
2,500 Brooklyn Bancorp, Inc. (a) - Banks......................................... 76,425 101,875
4,000 Cadiz Land Co., Inc. (a) - Land Development................................ 19,875 23,000
11,200 Comsat Corp. - Telecommunications.......................................... 218,813 208,600
3,000 Cray Research, Inc. (a) - Computer-Software................................ 47,545 74,250
10,250 Data General Corp. (a) - Computer-Software................................. 83,836 140,938
12,300 Egghead, Inc. (a) - Retail-Specialty and Specialty Mail Order.............. 130,001 79,181
5,700 Enhance Financial Services Group, Inc. - Insurance......................... 95,837 151,763
2,300 Equitable Companies, Inc. - Insurance...................................... 43,597 55,200
3,100 Finova Group, Inc. - Finance Companies..................................... 101,827 149,575
1,650 Gap, Inc. - Retail-Clothing................................................ 52,025 69,300
2,250 General Motors Corp. - Automobile Manufacturers............................ 110,949 118,969
13,000 GenRad, Inc. (a) - Electronic-Controls and Equipment....................... 73,818 125,125
1,350 Georgia Pacific Corp. - Forest Products.................................... 101,543 92,644
3,350 Houghton Mifflin Co. - Publishing.......................................... 143,328 144,050
2,600 Johnstown America Industries, Inc. (a) - Machinery-Specialty............... 40,630 13,000
7,700 Limited (The), Inc. - Retail-Clothing...................................... 137,299 133,788
3,800 Lukens, Inc. - Steel and Iron.............................................. 112,903 109,250
1,410 MBIA, Inc. - Insurance..................................................... 92,145 105,750
7,600 MCI Communications Corp. - Utilities-Telephone............................. 183,214 198,550
4,000 Mellon Bank Corp. - Banks.................................................. 161,649 215,000
1,200 Philip Morris Companies, Inc. - Tobacco.................................... 70,676 108,600
2,500 Sun Co., Inc. - Oil-Crude Petroleum and Gas................................ 72,318 68,438
1,000 Tecumseh Products Co. Cl A - Machinery..................................... 46,150 51,750
</TABLE>
36
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Value
Shares Cost (b)(e) (c)(e)
------- ----------- -----------
<C> <S> <C> <C>
10,000 UST Corp. - Banks.......................................................... $ 150,000 $ 145,000
5,000 Waban, Inc. (a) - Retail-Miscellaneous..................................... 86,914 93,750
6,000 WorldCorp, Inc. (a) - Transportation....................................... 52,870 60,000
----------- -----------
2,854,952 3,292,409
----------- -----------
TOTAL COMMON STOCKS........................................................ $7,349,252 $8,159,998
----------- -----------
----------- -----------
</TABLE>
PREFERRED STOCK-0.30%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Cost Value
Shares (b)(e) (c)(e)
------- ------- -------
<C> <S> <C> <C>
GERMANY - 0.30%
250 Volkswagen AG - Automobile Manufacturers................................... $53,169 $60,750
------- -------
</TABLE>
CORPORATE BONDS-INVESTMENT GRADE-23.90%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
& Poor's Market
Principal Rating Value
Amount (e) (Unaudited) Cost (b)(e) (c)(e)
------------ ------------ ----------- -----------
<C> <S> <C> <C> <C>
AUSTRALIA - 0.60%
150,000 Australian Government (Australian Dollar), 9.50% 8-15-2003................. AAA $ 115,037 $ 120,586
----------- -----------
CANADA - 1.33%
380,000 Canadian Government (Canadian Dollar), 7.50% 12-1-2003..................... Aa1* 264,703 210,576
100,000 Canadian Government (Canadian Dollar), 7.50% 9-1-2000...................... NR 72,553 55,778
----------- -----------
337,256 266,354
----------- -----------
DENMARK - 2.42%
1,200,000 Kingdom of Denmark (Danish Krone), 7.00% 12-15-2004........................ NA 181,311 215,670
1,400,000 Kingdom of Denmark (Danish Krone), 8.00% 11-15-2001........................ NA 257,584 270,436
----------- -----------
438,895 486,106
----------- -----------
FRANCE - 2.19%
2,000,000 French Treasury Bill (French Franc), 7.75% 4-12-2000....................... NA 419,444 438,412
----------- -----------
GERMANY - 5.60%
500,000 German Government (German Deutschemark), 6.50% 7-15-2003................... Aaa* 318,544 363,871
500,000 German Unity Fund (German Deutschemark), 8.00% 1-21-2002................... NR 388,155 393,704
500,000 Treuhandanstalt (German Deutschemark), 6.75% 5-13-2004..................... AAA 350,507 366,491
----------- -----------
1,057,206 1,124,066
----------- -----------
IRELAND - 0.44%
50,000 Irish Government (Irish Pound), 9.25% 7-11-2003............................ NR 85,832 89,314
----------- -----------
ITALY - 1.36%
430,000,000 Italian Government (Italian Lira), 10.50% 11-1-2000........................ NA 268,776 273,223
----------- -----------
JAPAN - 2.40%
19,000,000 Int'l Bank Reconstruction & Development (Japanese Yen), 4.75% 12-20-2004... AAA 216,744 210,442
23,000,000 Japan Development Bank (Japanese Yen), 6.50% 9-20-2001..................... Aaa* 291,946 272,166
----------- -----------
508,690 482,608
----------- -----------
</TABLE>
37
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL ASSET ALLOCATION SERIES (CONTINUED)
Schedule of Investments
December 31, 1995
CORPORATE BONDS-INVESTMENT GRADE-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's Market
Principal Rating Value
Amount (e) (Unaudited) Cost (b)(e) (c)(e)
------------ ------------ ----------- -----------
<C> <S> <C> <C> <C>
NETHERLANDS - 0.86%
250,000 Netherlands Government (Dutch Guilder), 7.75% 1-15-2000.................... NR $ 170,727 $ 171,945
----------- -----------
NEW ZEALAND - 0.65%
200,000 New Zealand Government (New Zealand Dollar), 8.00%7-15-1998................ AAA 131,050 131,055
----------- -----------
SPAIN - 2.12%
50,000,000 Spanish Government (Spanish Peseta), 10.30% 6-15-2002...................... NR 408,761 426,122
----------- -----------
SWEDEN - 1.61%
2,000,000 Swedish Government (Swedish Krona), 10.25% 5-5-2000........................ Aa1* 280,845 323,922
----------- -----------
UNITED KINGDOM - 2.32%
300,000 United Kingdom Treasury (British Pound Sterling), 7.00% 11-6-2001.......... Aaa* 456,350 466,362
----------- -----------
INVESTMENT GRADE........................................................... $4,678,869 $4,800,075
----------- -----------
----------- -----------
</TABLE>
U.S. GOVERNMENT SECURITIES-11.84%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Cost (b)(e) Value (c)(e)
--------- ------------ ------------
<C> <S> <C> <C>
U.S. TREASURY SECURITIES
NOTES:
$650,000 6.25% 2000................................................................. $ 655,406 $ 672,140
300,000 6.75% 1999................................................................. 293,415 313,593
650,000 7.25% 2004................................................................. 690,097 723,125
200,000 7.50% 1996................................................................. 199,705 204,437
400,000 7.875% 2004................................................................ 419,104 463,250
------------ ------------
TOTAL U.S. GOVERNMENT SECURITIES........................................... 2,257,727 2,376,545
------------ ------------
TOTAL LONG-TERM DEBT SECURITIES............................................ 6,936,596 7,176,620
------------ ------------
TOTAL LONG-TERM INVESTMENTS................................................ $14,339,017 $15,397,368
------------ ------------
------------ ------------
</TABLE>
SHORT-TERM INVESTMENTS-22.20%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Cost (b)(e) Value (c)(e)
---------- ------------ ------------
<C> <S> <C> <C>
BANK - 17.26%
$3,465,913 First Trust Money Market Variable Rate Time Deposit, Current
rate -- 5.51%............................................................ $ 3,465,913 $ 3,465,913
------------ ------------
U.S. TREASURY BILL - 4.94%
1,000,000 US Treasury Bill 5.21% 2-29-1996........................................... 987,168 992,311
------------ ------------
TOTAL SHORT-TERM INVESTMENTS............................................... $ 4,453,081 $ 4,458,224
------------ ------------
TOTAL INVESTMENTS IN SECURITIES (COST: $18,792,098) (B).................... $18,792,098 $19,855,592
------------ ------------
------------ ------------
</TABLE>
(a) Presently non-income producing.
(b) At December 31, 1995, the cost of securities for federal income tax
purposes was $18,792,098 and the aggregate gross unrealized appreciation
and depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation........................... $ 1,363,348
Unrealized depreciation........................... (299,854)
---------------------------------------------------------------
Net unrealized appreciation....................... $ 1,063,494
---------------------------------------------------------------
</TABLE>
(c) See Note A of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets.
(e) Cost and market value is stated in U.S. dollars; principal amount is stated
in the currency indicated.
* Moody's Rating
38
<PAGE>
FORTIS SERIES FUND, INC.
GROWTH & INCOME SERIES
Schedule of Investments
December 31, 1995
COMMON STOCKS-88.11%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (a) Value (b)
------- ------------ ------------
<C> <S> <C> <C>
AUTOMOBILE AND MOTOR VEHICLE PARTS-3.09%
20,000 Echlin, Inc................................................................ $ 666,164 $ 730,000
27,000 Genuine Parts Co........................................................... 1,079,390 1,107,000
------------ ------------
1,745,554 1,837,000
------------ ------------
BUSINESS SERVICES AND SUPPLIES-3.30%
29,900 MBNA Corp.................................................................. 899,373 1,102,562
23,200 Omnicom Group, Inc......................................................... 629,026 864,200
------------ ------------
1,528,399 1,966,762
------------ ------------
CHEMICALS-3.69%
25,500 Chemed Corp................................................................ 901,850 991,312
96,300 Ethyl Corp................................................................. 1,114,729 1,203,750
------------ ------------
2,016,579 2,195,062
------------ ------------
COMPUTER-SOFTWARE-1.95%
21,300 Shared Medical Systems Corp................................................ 675,637 1,158,187
------------ ------------
DRUGS-10.34%
17,600 Abbott Laboratories........................................................ 610,459 734,800
13,000 American Home Products Corp................................................ 1,059,865 1,261,000
20,000 Lilly (Eli) & Co., Inc..................................................... 707,745 1,125,000
17,000 Merck & Co., Inc........................................................... 725,181 1,117,750
15,000 Pfizer, Inc................................................................ 578,937 945,000
17,800 Schering-Plough Corp....................................................... 696,543 974,550
------------ ------------
4,378,730 6,158,100
------------ ------------
ELECTRIC PRODUCTS-1.31%
20,400 AMP, Inc................................................................... 781,760 782,850
------------ ------------
FINANCE COMPANIES-9.95%
22,500 American Express Co........................................................ 733,295 930,937
10,800 Federal National Mortgage Association...................................... 975,787 1,340,550
22,000 Household International, Inc............................................... 1,009,275 1,300,750
95,050 Mercury Finance Co......................................................... 1,116,143 1,259,412
16,600 Student Loan Marketing Association......................................... 784,618 1,093,525
------------ ------------
4,619,118 5,925,174
------------ ------------
HAND TOOLS AND GENERAL HARDWARE-1.52%
20,000 Snap-On, Inc............................................................... 918,676 905,000
------------ ------------
HEALTH CARE SERVICES-2.19%
28,000 U.S. HealthCare, Inc....................................................... 988,074 1,302,000
------------ ------------
HOUSEHOLD PRODUCTS-1.66%
13,800 Clorox Co.................................................................. 828,667 988,425
------------ ------------
INSURANCE-1.87%
25,000 American Brands, Inc....................................................... 977,721 1,115,625
------------ ------------
MACHINERY-1.68%
41,000 Dresser Industries, Inc.................................................... 892,957 999,375
------------ ------------
MACHINERY-OIL AND WELL-5.44%
20,100 Halliburton Co............................................................. 737,316 1,017,563
16,200 Kerr-McGee Corp............................................................ 826,056 1,028,700
33,600 Sonat, Inc................................................................. 1,048,119 1,197,000
------------ ------------
2,611,491 3,243,263
------------ ------------
MEDICAL SUPPLIES-2.31%
24,600 Baxter International, Inc.................................................. 786,862 1,030,125
4,000 Johnson & Johnson.......................................................... 185,035 342,500
------------ ------------
971,897 1,372,625
------------ ------------
</TABLE>
39
<PAGE>
FORTIS SERIES FUND, INC.
GROWTH & INCOME SERIES (CONTINUED)
Schedule of Investments
December 31, 1995
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (a) Value (b)
------- ------------ ------------
<C> <S> <C> <C>
MISCELLANEOUS-3.37%
14,000 General Electric Co........................................................ $ 817,885 $ 1,008,000
24,700 H & R Block, Inc........................................................... 1,093,689 1,000,350
------------ ------------
1,911,574 2,008,350
------------ ------------
NATURAL GAS TRANSMISSIONS-3.94%
35,000 El Paso Natural Gas Co..................................................... 1,018,230 993,125
30,800 Williams Companies, Inc.................................................... 1,056,560 1,351,350
------------ ------------
2,074,790 2,344,475
------------ ------------
NATURAL RESOURCES-1.29%
20,100 Enron Corp................................................................. 661,877 766,313
------------ ------------
OIL-CRUDE PETROLEUM AND GAS-5.20%
14,500 Amoco Corp................................................................. 920,210 1,042,188
40,300 Baker Hughes, Inc.......................................................... 842,123 982,313
38,400 Panhandle Eastern Corp..................................................... 932,068 1,070,400
------------ ------------
2,694,401 3,094,901
------------ ------------
PRINTING-1.37%
37,500 New England Business Service, Inc.......................................... 823,449 815,625
------------ ------------
PUBLISHING-3.80%
13,700 McGraw-Hill Companies, Inc................................................. 1,034,361 1,193,613
20,800 Readers Digest Association, Inc. Class A Non-Voting........................ 969,062 1,066,000
------------ ------------
2,003,423 2,259,613
------------ ------------
RETAIL-DEPARTMENT STORES-3.29%
19,200 JC Penney Company, Inc..................................................... 925,336 914,400
26,800 Sears Roebuck & Co......................................................... 886,773 1,045,200
------------ ------------
1,812,109 1,959,600
------------ ------------
RETAIL-MISCELLANEOUS-1.93%
33,500 Rite Aid Corp.............................................................. 809,055 1,147,375
------------ ------------
TELECOMMUNICATIONS-2.67%
11,000 AT & T Corp................................................................ 586,881 712,250
18,800 Beneficial Corp............................................................ 795,536 876,550
------------ ------------
1,382,417 1,588,800
------------ ------------
TOBACCO-1.98%
13,000 Philip Morris Companies, Inc............................................... 871,398 1,176,500
------------ ------------
UTILITIES-TELEPHONE-7.86%
17,000 Bell Atlantic Corp......................................................... 979,977 1,136,875
38,900 Frontier Corp.............................................................. 920,284 1,167,000
25,000 GTE Corp................................................................... 1,048,625 1,100,000
18,400 Telecom Corp. of New Zealand Ltd. ADR...................................... 1,095,385 1,276,500
------------ ------------
4,044,271 4,680,375
------------ ------------
WASTE DISPOSAL-1.11%
22,500 Browning-Ferris Industries, Inc............................................ 708,825 663,750
------------ ------------
TOTAL COMMON STOCKS........................................................ $43,732,849 $52,455,125
------------ ------------
------------ ------------
</TABLE>
40
<PAGE>
SHORT-TERM INVESTMENTS-11.65%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (b)
----------- ------------
<C> <S> <C>
BANKS-2.59%
$1,544,000 First Trust Money Market Variable Rate Time Deposit, Current
rate -- 5.51%............................................................ $ 1,544,000
------------
BROKERAGE AND INVESTMENT-0.17%
103,000 Goldman Sachs Master Variable Rate Note, Current rate -- 5.94%............. 103,000
------------
DIVERSIFIED FINANCE-0.51%
302,000 Associates Corp. Master Variable Rate Note, Current rate -- 5.52%.......... 302,000
------------
U.S. GOVERNMENT AGENCY-3.01%
1,800,000 Federal Home Loan Mortgage Corp., 5.57%, 1-22-1996......................... 1,793,983
------------
U.S. OTHER DIRECT FEDERAL OBLIGATIONS-5.37%
3,200,000 Federal Farm Credit Bank, 5.62%, 1-10-1996................................. 3,195,084
------------
TOTAL SHORT-TERM INVESTMENTS............................................... $ 6,938,067
------------
TOTAL INVESTMENTS IN SECURITIES (COST: $50,670,916) (A).................... $59,393,192
------------
------------
</TABLE>
(a) At December 31, 1995, the cost of securities for federal income tax
purposes was $50,670,916 and the aggregate gross unrealized appreciation
and depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation........................... $ 8,994,367
Unrealized depreciation........................... (272,091)
---------------------------------------------------------------
Net unrealized appreciation....................... $ 8,722,276
---------------------------------------------------------------
</TABLE>
(b) See Note A 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. Market value of investments in foreign
securities represents 2.14% of net assets as of December 31, 1995.
41
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL GROWTH SERIES
Schedule of Investments
December 31, 1995
COMMON STOCKS-84.75%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
---------- ----------- -----------
<C> <S> <C> <C>
ARGENTINA-0.15%
14,900 Buenos Aires Embotelladora S.A. ADR (f) -- BEVERAGE........................ $ 365,931 $ 307,312
----------- -----------
AUSTRALIA-0.53%
52,000 News Corp.(The), Ltd ADR (f) -- BROADCASTING............................... 916,065 1,111,500
----------- -----------
BELGIUM-1.22%
22,000 Barco NV -- TELECOMMUNICATIONS............................................. 2,395,529 2,537,965
----------- -----------
BRAZIL-0.56%
80,000 Iochpe Maxion S.A. ADR -- MACHINERY........................................ 684,251 218,120
20,000 Telebras ADR (f) -- UTILITIES-TELEPHONE.................................... 832,500 947,500
----------- -----------
1,516,751 1,165,620
----------- -----------
CANADA-0.70%
30,000 Canadian National Railway Co. Instalment Receipt (a) -- RAILROAD AND
RAILROAD EQUIPMENT....................................................... 360,000 450,000
38,000 Rogers Cantel Mobile Communications, Inc. Class B
(a) -- TELECOMMUNICATIONS................................................ 974,875 1,007,000
----------- -----------
1,334,875 1,457,000
----------- -----------
CHILE-0.46%
40,000 Santa Isabel S.A. ADR (a) (f) -- FOOD-GROCERY, MISCELLANEOUS............... 713,320 960,000
----------- -----------
DENMARK-0.35%
30,000 Scandinavian Mobility International A/S -- MEDICAL SUPPLIES................ 653,959 719,983
----------- -----------
FINLAND-2.82%
148,000 Nokia (AB) K Shares -- TELECOMMUNICATIONS.................................. 2,478,815 5,862,727
----------- -----------
FRANCE-2.94%
9,000 Castorama Dubois Investisse -- RETAIL-MISCELLANEOUS........................ 958,605 1,475,960
42,900 Sanofi SA -- DRUGS......................................................... 2,384,406 2,753,634
6,050 Sidel SA -- MACHINERY...................................................... 1,953,906 1,887,850
----------- -----------
5,296,917 6,117,444
----------- -----------
GERMANY-2.15%
57,000 SGL Carbon AG (a) -- STEEL AND IRON........................................ 2,708,232 4,460,353
----------- -----------
HONG KONG-0.21%
400,000 First Pacific Co. Ltd. -- MISCELLANEOUS.................................... 413,848 444,908
----------- -----------
HUNGARY-0.95%
240,000 MOL Magyar Olaj-es Gazipari Rt. GDS (a) (e) -- OIL-REFINING................ 1,944,000 1,984,968
----------- -----------
INDIA-0.85%
26,000 Bajaj Auto Ltd. GDR (a) (e) -- AUTOMOBILE MANUFACTURERS.................... 671,442 532,363
75,000 Indian Hotels Co., Ltd. (The) GDR (a) (e) -- HOTEL AND MOTEL............... 1,245,000 1,224,263
----------- -----------
1,916,442 1,756,626
----------- -----------
INDONESIA-0.90%
74,000 P.T. Telekomunikasi Indonesia (a) (f) -- UTILITIES-TELEPHONE............... 1,378,872 1,868,500
----------- -----------
ISRAEL-1.95%
84,000 ECI Telecom Ltd. (f) -- TELECOMMUNICATIONS................................. 1,662,746 1,916,250
46,000 Teva Pharmaceutical Industries, Ltd. ADR -- DRUGS.......................... 1,236,500 2,133,250
----------- -----------
2,899,246 4,049,500
----------- -----------
ITALY-3.54%
3,000 De Rigo S.p.A. ADR (a) -- CONSUMER GOODS................................... 48,000 68,250
82,700 Fila Holdings S.p.A. ADR -- APPAREL........................................ 1,943,696 3,762,850
30,000 Gucci Group (a) (f) -- RETAIL-MISCELLANEOUS................................ 660,000 1,166,250
52,000 Industrie Natuzzi S.p.A. ADR -- FURNITURE.................................. 1,160,467 2,359,500
----------- -----------
3,812,163 7,356,850
----------- -----------
JAPAN-6.98%
21,000 Autobacs Seven Co. Ltd. -- RETAIL-MISCELLANEOUS............................ 2,200,968 1,746,748
27,000 Canon, Inc. ADR (f) -- OFFICE EQUIPMENT AND SUPPLIES....................... 2,113,633 2,467,125
380 DDI Corp. -- TELECOMMUNICATIONS............................................ 2,477,317 2,947,116
40,000 Kyocera Corp. -- ELECTRONIC-CONTROLS AND EQUIPMENT......................... 3,089,965 2,974,261
12,000 Matsushita Electric Industrial Co., Ltd. ADR -- ELECTRONIC-CONTROLS AND
EQUIPMENT................................................................ 1,984,507 1,974,000
</TABLE>
42
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
---------- ----------- -----------
<C> <S> <C> <C>
296 Nippon Telegraph & Telephone Corp. -- TELEPHONE SERVICES................... $ 2,579,005 $ 2,394,464
----------- -----------
14,445,395 14,503,714
----------- -----------
MALAYSIA-0.60%
425,000 Technology Resources Industries (a) -- TELECOMMUNICATIONS.................. 1,474,736 1,255,464
----------- -----------
MEXICO-0.52%
34,000 Panamerican Beverages, Inc. Class A (f) -- BEVERAGE........................ 1,189,321 1,088,000
----------- -----------
NETHERLANDS-4.19%
70,000 IHC Caland NV -- MACHINERY-OIL AND WELL.................................... 1,402,766 2,358,095
90,000 Randstad Holdings NV -- BUSINESS SERVICES AND SUPPLIES..................... 2,461,190 4,087,364
24,000 Wolters Kluwer -- PUBLISHING............................................... 1,404,741 2,272,754
----------- -----------
5,268,697 8,718,213
----------- -----------
PHILIPPINES-0.36%
1,458,700 Megaworld Properties Holding, Inc. (a) -- REAL ESTATE...................... 749,540 736,881
----------- -----------
SOUTH KOREA-0.71%
56,000 Korea Electric Power Corp. (f) -- UTILITIES-ELECTRIC....................... 1,204,000 1,484,000
----------- -----------
SPAIN-0.54%
50,000 Continente Cent Co. -- RETAIL-MISCELLANEOUS................................ 1,038,063 1,129,281
----------- -----------
SWEDEN-4.07%
90,000 Astra AB 'B' -- DRUGS...................................................... 1,860,144 3,571,641
92,000 Ericsson (L.M.) Telephone Co. Class B ADR -- TELECOMMUNICATIONS............ 1,136,250 1,794,000
95,000 Hoganas Class B -- MISCELLANEOUS........................................... 2,474,102 2,780,961
7,100 WM Data AB Class B -- BUSINESS SERVICES AND SUPPLIES....................... 197,037 321,402
----------- -----------
5,667,533 8,468,004
----------- -----------
SWITZERLAND-1.15%
300 Roche Holdings AG, Genusschein NVP -- DRUGS................................ 1,568,202 2,379,088
----------- -----------
THAILAND-0.53%
90,000 Bangkok Bank Co. Ltd. -- BANKS............................................. 997,301 1,093,324
----------- -----------
UNITED KINGDOM-5.51%
250,000 British Sky Broadcasting plc -- BROADCASTING............................... 1,051,255 1,577,830
550,000 Dixons Group plc -- RETAIL-ELECTRIC PRODUCTS, RADIO, TV, AUDIO............. 1,747,817 3,808,527
260,000 Powerscreen International plc -- CONSTRUCTION.............................. 1,304,787 1,564,244
375,000 Telewest plc (a) -- TELECOMMUNICATIONS..................................... 1,073,914 902,449
360,000 Thorn Lighting Group plc -- ELECTRIC PRODUCTS.............................. 877,602 905,476
45,000 Videotron Holdings plc ADR (a) -- TELECOMMUNICATIONS....................... 787,500 573,750
60,000 Vodafone Group plc ADR (f) -- UTILITIES-TELEPHONE.......................... 1,645,028 2,115,000
----------- -----------
8,487,903 11,447,276
----------- -----------
UNITED STATES-39.31%
34,000 American Oncology Resources, Inc. (a) (f) -- HEALTH CARE SERVICES.......... 1,217,584 1,653,250
226,000 Anixter International, Inc. (a) -- ELECTRIC PRODUCTS....................... 4,382,468 4,209,250
85,000 Applebees International, Inc. -- RESTAURANTS AND FRANCHISING............... 1,454,875 1,933,750
90,000 Apple South, Inc. -- RESTAURANTS AND FRANCHISING........................... 1,097,670 1,935,000
76,000 Applied Materials, Inc. (a) -- ELECTRONIC-CONTROLS AND EQUIPMENT........... 1,866,800 2,992,500
60,000 AutoZone, Inc. (a) (f) -- RETAIL-MISCELLANEOUS............................. 1,430,967 1,732,500
30,000 Avant! Corp. (a) (f) -- COMPUTER-SOFTWARE.................................. 1,139,070 577,500
45,000 Bed, Bath & Beyond, Inc. (a) -- RETAIL-MISCELLANEOUS....................... 991,875 1,746,563
28,000 Catalina Marketing Corp. (a) -- BUSINESS SERVICES AND SUPPLIES............. 1,240,539 1,757,000
38,000 Cheesecake Factory, Inc. (a) (f) -- RESTAURANTS AND FRANCHISING............ 1,107,188 817,000
40,000 Cisco Systems, Inc. (a) (f) -- TELECOMMUNICATIONS.......................... 917,000 2,985,000
74,000 Credit Acceptance Corp. (a) (f) -- FINANCE COMPANIES....................... 1,813,000 1,535,500
45,000 Crown Cork & Seal Company Inc. (a) (f) -- CONTAINERS AND PACKAGING......... 2,034,675 1,878,750
30,000 DSC Communications Corp. (a) -- TELECOMMUNICATIONS......................... 872,206 1,106,250
160,000 Gartner Group, Inc. Class A (a) (f) -- BUSINESS SERVICES AND SUPPLIES...... 1,600,000 7,660,000
9,000 HCIA, Inc. (a) -- HEALTH CARE SERVICES..................................... 256,950 420,750
65,000 Input/Output, Inc. (a) -- COMPUTER-SOFTWARE................................ 934,975 3,753,750
86,000 Landmark Graphics Corp. (a) -- BUSINESS SERVICES AND SUPPLIES.............. 1,911,814 1,999,500
135,000 Mercury Finance Co. (f) -- FINANCE COMPANIES............................... 1,394,155 1,788,750
49,000 Mercury Interactive Corp. (a) -- COMPUTER-SOFTWARE......................... 1,120,388 894,250
31,500 Office Depot, Inc. (a) (f) -- RETAIL-MISCELLANEOUS......................... 544,628 622,125
</TABLE>
43
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL GROWTH SERIES (CONTINUED)
Schedule of Investments
December 31, 1995
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
---------- ----------- -----------
<C> <S> <C> <C>
48,000 Oracle Corp. (a) (f) -- COMPUTER-SOFTWARE.................................. $ 968,000 $ 2,034,000
73,000 Owen Healthcare, Inc.(a) -- HEALTH CARE SERVICES........................... 876,000 2,016,625
50,000 Parametric Technology Corp. (a) (f) -- COMPUTER-SOFTWARE................... 1,506,616 3,325,000
35,000 R.P. Sherer Corp. (a) (f) -- DRUGS......................................... 1,400,000 1,719,375
37,000 Service Corp. International (f) -- BUSINESS SERVICES AND SUPPLIES.......... 1,424,500 1,628,000
90,000 Steris Corp. (a) -- MEDICAL SUPPLIES....................................... 1,526,527 2,902,500
80,000 Synopsys, Inc. (a) -- COMPUTER-SOFTWARE.................................... 1,733,111 3,040,000
46,000 Tandy Corp. -- OFFICE EQUIPMENT AND SUPPLIES............................... 1,759,922 1,909,000
60,000 Tellabs, Inc. (a) (f) -- TELECOMMUNICATIONS................................ 1,613,430 2,220,000
88,000 3Com Corp. (a) (f) -- TELECOMMUNICATIONS................................... 1,155,000 4,103,000
38,000 U.S. Robotics Corp. (a) -- COMPUTER-SOFTWARE............................... 1,633,487 3,334,500
30,000 Viking Office Products, Inc. (a) (f) -- RETAIL-SPECIALTY AND SPECIALTY MAIL
ORDER.................................................................... 896,730 1,395,000
56,000 Wabash National Corp. (f) -- TRANSPORTATION................................ 1,872,962 1,246,000
37,500 Western Atlas, Inc. (a) (f) -- OIL AND GAS FIELD SERVICES.................. 1,713,488 1,893,750
57,000 Wisconsin Central Transportation Corp. (a) (f) -- TRANSPORTATION........... 1,943,225 3,747,750
40,000 Xilinx, Inc. (a) -- ELECTRONIC-SEMICONDUCTOR AND CAPACITOR................. 541,220 1,220,000
----------- -----------
51,893,045 81,733,438
----------- -----------
TOTAL COMMON STOCKS........................................................ $124,728,701 $176,197,939
----------- -----------
----------- -----------
</TABLE>
PREFERRED STOCKS-4.85%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
AUSTRALIA-0.24%
26,000 News Corp. (The), Ltd. Preferred ADR -- BROADCASTING....................... $ 395,785 $ 500,500
------------ ------------
GERMANY-4.61%
63,000 SAP AG Systeme Preferred -- COMPUTER-SOFTWARE.............................. 2,010,753 9,586,824
------------ ------------
TOTAL PREFERRED STOCKS..................................................... $ 2,406,538 $ 10,087,324
------------ ------------
TOTAL EQUITY INVESTMENTS................................................... $127,135,239 $186,285,263
------------ ------------
------------ ------------
</TABLE>
SHORT-TERM INVESTMENTS-10.32%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
----------- ------------
<C> <S> <C>
BANKS-2.39%
$4,975,000 First Trust Money Market Variable Rate Time Deposit, Current
rate -- 5.51%............................................................ $ 4,975,000
------------
BROKERAGE AND INVESTMENT-1.03%
2,140,000 Goldman Sachs Master Variable Rate Note, Current rate -- 5.94%............. 2,140,000
------------
U.S. GOVERNMENT AGENCY-6.90%
14,400,000 Federal Home Loan Mortgage Corp.,, 5.57%, 1-22-1996........................ 14,351,864
------------
TOTAL SHORT-TERM INVESTMENTS............................................... $ 21,466,864
------------
TOTAL INVESTMENTS IN SECURITIES (COST: $148,602,103) (B)................... $207,752,127
------------
------------
</TABLE>
(a) Presently not paying dividend income.
(b) At December 31, 1995, the cost of securities for federal income tax
purposes was $148,602,103 and the aggregate gross unrealized appreciation
and depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation....................... $63,695,587
Unrealized depreciation....................... (4,545,563)
---------------------------------------------------------------
Net unrealized appreciation................... $59,150,024
---------------------------------------------------------------
</TABLE>
(c) See Note A of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets.
(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 liquid securities. The aggregate value of these securities at
December 31, 1995 was $3,741,594 which represents 1.80% of total net
assets.
(f) Security is fully or partially on loan at December 31, 1995. See Note A of
accompanying Notes to Financial Statements.
44
<PAGE>
FORTIS SERIES FUND, INC.
GROWTH STOCK SERIES
Schedule of Investments
December 31, 1995
COMMON STOCKS-82.21%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
APPAREL-0.28%
35,000 Tommy Hilfiger Corp. (a)................................................... $ 708,750 $ 1,483,125
------------ ------------
BIOMEDICS, GENETICS RESEARCH AND DEVELOPMENT-0.96%
82,500 Biogen, Inc. (a)........................................................... 4,408,687 5,073,750
------------ ------------
BROADCASTING-0.32%
46,000 America Online, Inc. (a)................................................... 964,125 1,725,000
------------ ------------
BUSINESS SERVICES AND SUPPLIES-1.13%
89,603 First Data Corp............................................................ 3,774,569 5,992,201
------------ ------------
COMPUTER-SOFTWARE-16.28%
42,000 Ascend Communications, Inc. (a)............................................ 2,806,975 3,407,250
204,800 BMC Software, Inc. (a)..................................................... 5,086,954 8,755,200
66,000 Computer Associates International, Inc..................................... 2,905,144 3,753,750
48,000 FORE Systems, Inc. (a)..................................................... 2,617,127 2,856,000
51,000 HBO & Co................................................................... 1,879,788 3,907,875
620,000 Informix Corp. (a)......................................................... 6,588,991 18,600,000
74,000 Input/Output, Inc. (a)..................................................... 3,256,000 4,273,500
132,100 Microsoft Corp. (a)........................................................ 4,693,098 11,591,775
463,200 Oracle Corp. (a)........................................................... 2,530,805 19,628,100
144,900 Parametric Technology Corp. (a)............................................ 4,008,045 9,635,850
------------ ------------
36,372,927 86,409,300
------------ ------------
ELECTRONIC-COMMUNICATION SECURITY-3.66%
149,000 ADC Telecommunications, Inc. (a)........................................... 4,839,814 5,438,500
89,000 Andrew Corp. (a)........................................................... 4,296,061 3,404,250
111,000 Bay Networks, Inc. (a)..................................................... 4,111,439 4,564,875
140,000 Qualcomm, Inc. (a)......................................................... 5,296,387 6,020,000
------------ ------------
18,543,701 19,427,625
------------ ------------
ELECTRONIC-CONTROLS AND EQUIPMENT-5.30%
210,000 Applied Materials, Inc. (a)................................................ 5,289,990 8,268,750
153,600 Lam Research Corp. (a)..................................................... 5,121,804 7,027,200
291,600 Solectron Corp. (a)........................................................ 8,184,891 12,866,850
------------ ------------
18,596,685 28,162,800
------------ ------------
ELECTRONIC-SEMICONDUCTOR AND CAPACITOR-3.54%
266,000 Cypress Semiconductor Corp. (a)............................................ 3,898,940 3,391,500
140,600 Intel Corp................................................................. 4,362,725 7,979,050
100,000 LSI Logic Corp. (a)........................................................ 5,452,276 3,275,000
105,000 Micron Technology, Inc..................................................... 2,910,946 4,160,625
------------ ------------
16,624,887 18,806,175
------------ ------------
FINANCE COMPANIES-4.32%
86,000 Federal National Mortgage Association...................................... 6,763,724 10,674,750
100,000 Franklin Resources, Inc.................................................... 3,604,950 5,037,500
545,550 Mercury Finance Co......................................................... 5,897,799 7,228,537
------------ ------------
16,266,473 22,940,787
------------ ------------
HEALTH CARE SERVICES-5.93%
79,000 Medaphis Corp. (a)......................................................... 2,249,808 2,923,000
96,000 Oxford Health Plans, Inc. (a).............................................. 4,236,143 7,092,000
60,200 PacifiCare Health Systems, Inc. Class B (a)................................ 3,269,006 5,237,400
138,000 U.S. HealthCare, Inc....................................................... 5,146,898 6,417,000
99,600 United Healthcare Corp..................................................... 4,296,512 6,523,800
102,000 Vencor, Inc. (a)........................................................... 3,196,495 3,315,000
------------ ------------
22,394,862 31,508,200
------------ ------------
HOTEL AND MOTEL-0.57%
86,100 Harrah's Entertainment, Inc. (a)........................................... 2,268,947 2,087,925
43,050 Promus Hotel Corp. (a)..................................................... 944,539 957,862
------------ ------------
3,213,486 3,045,787
------------ ------------
</TABLE>
45
<PAGE>
FORTIS SERIES FUND, INC.
GROWTH STOCK SERIES (CONTINUED)
Schedule of Investments
December 31, 1995
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
MACHINERY-OIL AND WELL-1.04%
220,000 Petroleum Geo-Services A/S ADR (a)......................................... $ 5,280,602 $ 5,500,000
------------ ------------
MISCELLANEOUS-1.89%
293,700 CUC International, Inc. (a)................................................ 5,588,558 10,022,512
------------ ------------
OFFICE EQUIPMENT AND SUPPLIES-3.37%
137,000 Compaq Computer Corp. (a).................................................. 5,134,790 6,576,000
181,100 Sterling Software, Inc..................................................... 4,434,718 11,296,113
------------ ------------
9,569,508 17,872,113
------------ ------------
PUBLISHING-0.80%
54,700 Scholastic Corp. (a)....................................................... 2,787,578 4,252,925
------------ ------------
RESTAURANTS AND FRANCHISING-3.94%
117,000 Boston Chicken, Inc. (a)................................................... 4,090,863 3,758,625
274,400 Lone Star Steakhouse & Saloon, Inc. (a).................................... 5,048,875 10,530,100
185,300 Outback Steakhouse, Inc. (a)............................................... 3,827,338 6,647,638
------------ ------------
12,967,076 20,936,363
------------ ------------
RETAIL-DEPARTMENT STORES-1.33%
42,700 Kohl's Corp. (a)........................................................... 1,372,378 2,241,750
214,800 Wal-Mart Stores, Inc....................................................... 4,432,621 4,806,150
------------ ------------
5,804,999 7,047,900
------------ ------------
RETAIL-MISCELLANEOUS-6.64%
196,000 AutoZone, Inc. (a)......................................................... 4,253,373 5,659,500
116,500 Barnes & Noble, Inc. (a)................................................... 2,987,298 3,378,500
177,200 Home Depot, Inc............................................................ 6,435,766 8,483,450
115,000 Lowe's Companies, Inc...................................................... 4,226,793 3,852,500
174,375 Office Depot, Inc. (a)..................................................... 2,250,275 3,443,906
160,000 Pep Boys Manny Moe & Jack.................................................. 3,807,194 4,100,000
258,750 Staples, Inc. (a).......................................................... 4,725,946 6,307,031
------------ ------------
28,686,645 35,224,887
------------ ------------
TELECOMMUNICATIONS-16.58%
601,600 3Com Corp. (a)............................................................. 3,601,668 28,049,600
296,500 Cisco Systems, Inc. (a).................................................... 3,696,167 22,126,313
250,000 DSC Communications Corp. (a)............................................... 7,671,124 9,218,750
68,500 MFS Communications Co. (a)................................................. 2,771,563 3,647,625
100,000 Motorola, Inc.............................................................. 5,469,000 5,700,000
68,000 Nokia Corp. Class A ADR.................................................... 4,469,366 2,643,500
450,000 Tellabs, Inc. (a).......................................................... 5,568,200 16,650,000
------------ ------------
33,247,088 88,035,788
------------ ------------
TELEPHONE SERVICES-4.33%
260,000 Mobile Telecommunications Technologies Corp. (a)........................... 5,653,922 5,557,500
246,000 Paging Network, Inc. (a)................................................... 3,720,750 5,996,250
325,000 WorldCom, Inc. (a)......................................................... 7,378,215 11,456,250
------------ ------------
16,752,887 23,010,000
------------ ------------
TOTAL COMMON STOCKS........................................................ $262,554,093 $436,477,238
------------ ------------
------------ ------------
</TABLE>
46
<PAGE>
SHORT-TERM INVESTMENTS-17.76%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
----------- ------------
<C> <S> <C>
BANKS-3.26%
$17,321,595 First Trust Money Market Variable Rate Time Deposit, Current
rate -- 5.51%............................................................ $ 17,321,595
------------
BROKERAGE AND INVESTMENT-0.75%
3,982,000 Goldman Sachs Master Variable Rate Note, Current rate -- 5.94%............. 3,982,000
------------
DIVERSIFIED FINANCE-0.28%
1,466,000 Associates Corp. Master Variable Rate Note, Current rate -- 5.52%.......... 1,466,000
------------
U.S. GOVERNMENT AGENCY-7.48%
17,100,000 Federal Home Loan Mortgage Corp., 5.57%, 1-22-1996......................... 17,042,839
11,700,000 Federal Home Loan Mortgage Corp., 5.75%, 1-16-1996......................... 11,670,672
11,000,000 Fed Natl Mtg Assoc, 5.78%, 1-8-1996........................................ 10,986,140
------------
39,699,651
------------
U.S. OTHER DIRECT FEDERAL OBLIGATIONS-5.99%
21,800,000 Federal Farm Credit Bank, 5.53%, 1-25-1996................................. 21,717,796
10,100,000 Federal Farm Credit Bank, 5.62%, 1-10-1996................................. 10,084,485
------------
31,802,281
------------
TOTAL SHORT-TERM INVESTMENTS............................................... $ 94,271,527
------------
TOTAL INVESTMENTS IN SECURITIES (COST: $356,825,620) (B)................... $530,748,765
------------
------------
</TABLE>
(a) Presently not paying dividend income.
(b) At December 31, 1995, the cost of securities for federal income tax
purposes was $356,825,620 and the aggregate gross unrealized appreciation
and depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation........................... $181,146,092
Unrealized depreciation........................... (7,222,947)
---------------------------------------------------------------
Net unrealized appreciation....................... $173,923,145
---------------------------------------------------------------
</TABLE>
(c) See Note A of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets. Market value of investments in foreign
securities represents 1.53% of net assets as of December 31, 1995.
47
<PAGE>
FORTIS SERIES FUND, INC.
INTERNATIONAL STOCK SERIES
Schedule of Investments
December 31, 1995
COMMON STOCKS-88.31%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
-------- ----------- -----------
<C> <S> <C> <C>
AUSTRALIA-2.22%
106,900 Westpac Banking Corp. Ltd. -- BANKS........................................ $ 409,487 $ 473,936
----------- -----------
DENMARK-1.40%
6,000 Uni-Danmark A/S 'A' -- BANKS............................................... 270,366 297,737
----------- -----------
FINLAND-1.50%
12,100 Kymmene OY -- PAPER........................................................ 354,570 320,474
----------- -----------
FRANCE-11.44%
1,930 Accor SA -- HOTEL AND MOTEL................................................ 237,129 250,210
7,140 Alcatel Alsthom CIE Generale D'Electricite S.A. -- TELECOMMUNICATIONS...... 665,750 616,416
7,200 Banque Nationale de Paris (a) -- BANKS..................................... 319,696 325,226
3,600 CIE Generale Des Eaux -- TELECOMMUNICATIONS................................ 371,961 359,899
2,900 Compagnie De Saint-Gobain -- BUILDING MATERIALS............................ 373,105 321,407
3,400 Roussel UCLAF ADR (d) -- DRUGS............................................. 244,330 288,526
4,105 Total S.A. Co Francaise Petroles 'B' -- OIL-CRUDE PETROLEUM AND GAS........ 244,665 277,423
----------- -----------
2,456,636 2,439,107
----------- -----------
GERMANY-8.04%
1,560 Hoechst AG -- CHEMICALS.................................................... 356,587 425,075
1,320 Mannesmann AG -- MACHINERY................................................. 402,547 421,009
800 Siemens AG -- UTILITIES-ELECTRIC........................................... 399,311 440,446
10,000 Veba AG -- UTILITIES-ELECTRIC.............................................. 386,700 428,988
----------- -----------
1,545,145 1,715,518
----------- -----------
HONG KONG-2.47%
26,600 HSBC Holdings plc -- BANKS................................................. 366,208 402,512
96,000 Peregrine Investment Holdings Ltd. -- FINANCE COMPANIES.................... 115,194 124,160
----------- -----------
481,402 526,672
----------- -----------
JAPAN-24.39%
10,000 Dai Nippon Printing Co. Ltd. -- PRINTING................................... 165,158 169,653
45 DDI Corp. -- TELECOMMUNICATIONS............................................ 363,106 349,001
31,000 Hitachi Ltd. -- ELECTRONIC-CONTROLS AND EQUIPMENT.......................... 313,481 312,549
22,000 Matsushita Electric Industrial Co. -- ELECTRIC PRODUCTS.................... 366,978 358,307
63,000 Mazda Motor (a) -- AUTOMOBILE MANUFACTURERS................................ 286,933 268,120
64,000 Mitsubishi Heavy Industries Ltd. -- AUTOMOBILE MANUFACTURERS............... 471,057 510,627
3,000 Nintendo -- TOYS........................................................... 196,410 228,305
16,000 Omron Corp. -- ELECTRONIC-CONTROLS AND EQUIPMENT........................... 328,229 369,165
9,000 Orix Corp. -- LEASING...................................................... 335,436 370,813
3,200 Promise Co., Ltd. -- FINANCE COMPANIES..................................... 142,519 154,181
1,000 Ricoh Corp. LTD -- OFFICE EQUIPMENT AND SUPPLIES........................... 11,363 11,246
8,000 Rohm Company -- ELECTRIC PRODUCTS.......................................... 399,115 452,150
26,000 Sekisui Chemical Co. -- CHEMICALS.......................................... 314,493 383,125
6,800 Sony Corp. -- ELECTRONIC-CONTROLS AND EQUIPMENT............................ 362,810 408,059
32,000 Sumitomo Trust & Bank -- BANKS............................................. 429,983 452,925
19,000 Toyota Motor -- AUTOMOBILE MANUFACTURERS................................... 387,219 403,387
----------- -----------
4,874,290 5,201,613
----------- -----------
NETHERLANDS-7.22%
2,350 Heineken NV -- BEVERAGE.................................................... 334,968 417,373
7,340 Internationale Nederlanden Groep NV -- FINANCE COMPANIES................... 399,187 490,863
7,900 Koninklijke Nedlloyd Groep NV -- TRANSPORTATION............................ 236,019 179,390
3,200 Royal Dutch Petroleum Company -- OIL-CRUDE PETROLEUM AND GAS............... 392,015 451,600
----------- -----------
1,362,189 1,539,226
----------- -----------
NEW ZEALAND-1.53%
61,700 Fletcher Challenge Ltd. -- FOREST PRODUCTS................................. 160,828 142,388
77,500 Lion Nathan Ltd. -- BUILDING MATERIALS..................................... 149,062 184,931
----------- -----------
309,890 327,319
----------- -----------
</TABLE>
48
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ----------- -----------
<C> <S> <C> <C>
NORWAY-0.87%
14,000 Aker A/S-A -- BUILDING MATERIALS........................................... $ 184,135 $ 186,139
----------- -----------
SPAIN-1.95%
2,400 Banco Santander S.A. -- BANKS.............................................. 98,959 120,479
5,200 Empresa Nacional de Electricidad -- ELECTRIC PRODUCTS...................... 292,780 294,470
----------- -----------
391,739 414,949
----------- -----------
SWEDEN-3.43%
8,500 Astra AB 'B' -- DRUGS...................................................... 248,373 337,322
5,700 Electrolux AB 'B' Free -- HOUSEHOLD PRODUCTS............................... 261,378 234,375
7,800 Volvo AB-B -- AUTOMOBILE MANUFACTURERS..................................... 148,803 160,067
----------- -----------
658,554 731,764
----------- -----------
SWITZERLAND-7.10%
136 Baloise Holdings Ltd. -- INSURANCE......................................... 275,515 283,665
500 Ciba-Geigy AG -- CHEMICALS................................................. 370,881 441,055
345 Nestle S.A. Registered -- FOOD-GROCERY, MISCELLANEOUS...................... 346,935 382,583
205 SGS Societe Generale de Surveillance Holding S.A. -- BANKS................. 330,596 407,986
----------- -----------
1,323,927 1,515,289
----------- -----------
UNITED KINGDOM-14.75%
25,300 Allied Domecq PLC -- RETAIL-DEPARTMENT STORES.............................. 202,443 206,224
33,089 British Aerospace plc (a) -- AEROSPACE AND EQUIPMENT....................... 278,991 409,451
948 British Aerospace (warrants) -- AEROSPACE AND EQUIPMENT.................... 2,452 4,592
52,700 Cadbury Schweppes plc -- STEEL AND IRON.................................... 407,918 435,293
31,400 Lloyds Abbey Life plc -- INSURANCE......................................... 199,483 219,382
19,900 Midlands Electricity plc -- UTILITIES-ELECTRIC............................. 177,570 234,197
74,600 Mirror Group plc -- PUBLISHING............................................. 171,185 203,850
16,099 National Grid Group plc -- UTILITIES-ELECTRIC.............................. 48,198 49,866
30,800 National Power plc -- UTILITIES-ELECTRIC................................... 233,998 214,951
15,600 National Power plc -- UTILITIES-ELECTRIC................................... 45,969 37,421
59,500 Rank Organisation plc -- LEISURE TIME-AMUSEMENTS........................... 385,391 430,489
199,600 Sears -- RETAIL-DEPARTMENT STORES.......................................... 337,240 322,295
16,000 Thorn Emi plc -- MISCELLANEOUS............................................. 323,214 376,847
----------- -----------
2,814,052 3,144,858
----------- -----------
TOTAL COMMON STOCKS........................................................ $17,436,382 $18,834,601
----------- -----------
</TABLE>
PREFERRED STOCKS-3.00%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost Value
-------- ----------- -----------
<C> <S> <C> <C>
AUSTRALIA-1.67%
18,500 News Corp., Ltd.(The) Preferred ADR -- BROADCASTING........................ $ 344,089 $ 356,125
----------- -----------
ITALY-1.33%
155,700 Fiat SpA -- AUTOMOBILE MANUFACTURERS....................................... 369,126 284,626
----------- -----------
TOTAL PREFERRED STOCKS..................................................... $ 713,215 $ 640,751
----------- -----------
TOTAL LONG-TERM INVESTMENTS................................................ $18,149,597 $19,475,352
----------- -----------
</TABLE>
49
<PAGE>
FORTIS SERIES FUND, INC.
INTERNATIONAL STOCK SERIES (CONTINUED)
Schedule of Investments
December 31, 1995
SHORT-TERM INVESTMENTS-11.34%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
---------- -----------
<C> <S> <C>
BANKS-10.36%
$2,208,599 First Trust Money Market Variable Rate Time Deposit, Current
rate -- 5.51%............................................................ $2,208,599
-----------
U.S. GOVERNMENT AGENCY-0.89%
120,000 Federal Home Loan Mortgage Corp., 7.10% 1-2-1996........................... 119,963
70,000 Federal National Mortgage Association, 6.00% 1-3-1996...................... 69,968
-----------
189,931
-----------
U.S. TREASURY BILLS-0.09%
20,000 US Treasury Bill, 4.88% 1-11-1996.......................................... 19,972
-----------
TOTAL SHORT-TERM INVESTMENTS............................................... $2,418,502
-----------
TOTAL INVESTMENTS IN SECURITIES (COST: $20,568,099) (B).................... $21,893,854
-----------
-----------
</TABLE>
(a) Presently not paying dividend income.
(b) At December 31, 1995, the cost of securities for federal income tax
purposes was $20,577,677 and the aggregate gross unrealized appreciation
and depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation........................... $ 1,735,116
Unrealized depreciation........................... (418,939)
---------------------------------------------------------------
Net unrealized appreciation....................... $ 1,316,177
---------------------------------------------------------------
</TABLE>
(c) See Note A of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) 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: On January 5, 1995, April 21, 1995, May 23,
1995 and December 27, 1995 the portfolio acquired 800, 1,100, 800 and 700
shares of Roussel UCLAF ADR with a cost basis of $49,332, $80,080, $55,593,
and $59,325, respectively. The value of these securities at December 31,
1995, is $288,526 which represents 1.35% of net assets.
(e) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets.
50
<PAGE>
FORTIS SERIES FUND, INC.
AGGRESSIVE GROWTH SERIES
Schedule of Investments
December 31, 1995
COMMON STOCKS-86.81%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
-------- ----------- -----------
<C> <S> <C> <C>
ADVERTISING-PUBLIC RELATIONS-0.21%
2,500 CKS Group, Inc. (a)........................................................ $ 42,500 $ 97,500
----------- -----------
BROADCASTING-1.42%
17,800 America Online, Inc. (a)................................................... 286,512 667,500
----------- -----------
BUSINESS SERVICES AND SUPPLIES-4.60%
31,600 Acxiom Corp. (a)........................................................... 595,637 865,050
32,000 APAC Teleservices, Inc. (a)................................................ 584,508 1,068,000
3,600 Catalina Marketing Corp. (a)............................................... 200,394 225,900
----------- -----------
1,380,539 2,158,950
----------- -----------
COMPUTER-SOFTWARE-24.49%
4,000 Cascade Communications Corp. (a)........................................... 345,500 341,000
4,000 Cerner Corp. (a)........................................................... 94,500 82,000
1,200 Citrix Systems, Inc. (a)................................................... 18,000 39,000
15,000 FSI International, Inc. (a)................................................ 427,083 303,750
28,000 FTP Software, Inc. (a)..................................................... 843,046 812,000
20,000 Idexx Laboratories, Inc. (a)............................................... 784,375 940,000
48,600 Informix Corp. (a)......................................................... 735,304 1,458,000
16,800 Input/Output, Inc. (a)..................................................... 392,894 970,200
24,000 Legato Systems, Inc. (a)................................................... 768,375 744,000
22,000 Macromedia, Inc. (a)....................................................... 478,764 1,149,500
1,500 Mecon, Inc. (MECN)......................................................... 19,500 23,812
14,000 Medic Computer Systems, Inc. (a)........................................... 745,573 847,000
1,500 Netscape Communications Corp. (a).......................................... 202,125 208,500
22,000 Network General Corp. (a).................................................. 817,067 734,250
9,800 Parametric Technology Corp. (a)............................................ 324,960 651,700
10,000 Quarterdeck Corp. (a)...................................................... 370,469 275,000
19,000 Scopus Technology, Inc. (a)................................................ 378,029 479,750
4,500 Shiva Corp. (a)............................................................ 332,437 327,375
3,000 Spyglass Inc. (a).......................................................... 153,750 171,000
24,000 Synopsys, Inc. (a)......................................................... 661,712 912,000
1,500 Visioneer Inc. (a)......................................................... 18,000 33,375
----------- -----------
8,911,463 11,503,212
----------- -----------
CONSTRUCTION-2.01%
22,400 Fastenal Co................................................................ 707,850 946,400
----------- -----------
ELECTRONIC-COMMUNICATION SECURITY-0.97%
12,500 ADC Telecommunications, Inc. (a)........................................... 403,225 456,250
----------- -----------
ELECTRONIC-CONTROLS AND EQUIPMENT-3.24%
12,000 StrataCom, Inc. (a)........................................................ 398,625 882,000
24,800 Ultratech Stepper, Inc. (a)................................................ 660,837 638,600
----------- -----------
1,059,462 1,520,600
----------- -----------
ELECTRONIC-DEFENSE-0.95%
24,000 Trimble Navigation Ltd. (a)................................................ 642,000 447,000
----------- -----------
ELECTRONIC-SEMICONDUCTOR AND CAPACITOR-2.47%
15,000 Paradigm Technology, Inc. (a).............................................. 482,085 202,500
18,800 Unitrode Corp. (a)......................................................... 351,681 531,100
14,000 Xilinx, Inc. (a)........................................................... 421,694 427,000
----------- -----------
1,255,460 1,160,600
----------- -----------
HEALTH CARE SERVICES-10.48%
25,000 American Oncology Resources, Inc. (a)...................................... 866,183 1,215,625
19,850 Genesis Health Ventures, Inc. (a).......................................... 621,771 724,525
11,500 Health Care & Retirement Corp. (a)......................................... 335,523 402,500
9,200 Healthsource, Inc. (a)..................................................... 184,644 331,200
6,000 Medaphis Corp. (a)......................................................... 163,767 222,000
25,000 Medpartners, Inc. (a)...................................................... 575,092 825,000
23,000 Omnicare, Inc.............................................................. 706,235 1,029,250
</TABLE>
51
<PAGE>
FORTIS SERIES FUND, INC.
AGGRESSIVE GROWTH SERIES (CONTINUED)
Schedule of Investments
December 31, 1995
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ----------- -----------
<C> <S> <C> <C>
8,000 Summit Medical Systems, Inc. (a)........................................... $ 72,000 $ 172,000
----------- -----------
3,525,215 4,922,100
----------- -----------
MACHINERY-OIL AND WELL-1.17%
22,000 Petroleum Geo-Services A/S ADR (a)......................................... 468,287 550,000
----------- -----------
MEDICAL SUPPLIES-0.92%
31,000 Isolyser Co., Inc. (a)..................................................... 483,500 434,000
----------- -----------
OFFICE EQUIPMENT AND SUPPLIES-3.36%
9,400 Avid Technology, Inc. (a).................................................. 278,925 178,600
24,000 Franklin Electronic Publishers, Inc. (a)................................... 669,815 708,000
11,100 Sterling Software, Inc. (a)................................................ 376,469 692,362
----------- -----------
1,325,209 1,578,962
----------- -----------
PUBLISHING-1.69%
36,000 Davidson and Associates, Inc. (a).......................................... 985,999 792,000
----------- -----------
RESTAURANTS AND FRANCHISING-5.21%
9,200 Applebees International, Inc............................................... 143,065 209,300
19,000 Boston Chicken, Inc. (a)................................................... 664,449 610,375
24,000 Cheesecake Factory, Inc. (a)............................................... 667,420 516,000
23,000 Lone Star Steakhouse & Saloon, Inc. (a).................................... 769,775 882,625
5,600 Papa John's International, Inc. (a)........................................ 153,850 230,650
----------- -----------
2,398,559 2,448,950
----------- -----------
RETAIL-MISCELLANEOUS-11.27%
35,600 Authentic Fitness Corp..................................................... 665,118 738,700
12,000 Bed, Bath & Beyond, Inc. (a)............................................... 347,675 465,750
31,000 Books-A-Million, Inc. (a).................................................. 462,433 399,125
34,500 Corporate Express, Inc. (a)................................................ 674,375 1,039,313
7,700 Gymboree Corp. (a)......................................................... 202,987 158,813
13,900 Micro Warehouse, Inc. (a).................................................. 458,438 601,175
13,800 PETsMART, Inc. (a)......................................................... 310,538 427,800
41,000 Sunglass Hut International, Inc. (a)....................................... 696,797 973,750
15,700 West Marine, Inc. (a)...................................................... 431,513 490,625
----------- -----------
4,249,874 5,295,051
----------- -----------
RETAIL-SPECIALTY AND SPECIALTY MAIL ORDER-1.13%
21,000 Gadzooks, Inc. (a)......................................................... 355,622 530,250
----------- -----------
TELECOMMUNICATIONS-5.38%
7,900 Cisco Systems, Inc. (a).................................................... 252,188 589,538
11,200 DSC Communications Corp. (a)............................................... 355,800 413,000
19,300 MFS Communications Co. (a)................................................. 779,723 1,027,725
13,400 Tellabs, Inc.(a)........................................................... 311,000 495,800
----------- -----------
1,698,711 2,526,063
----------- -----------
UTILITIES-TELEPHONE-4.04%
17,200 IntelCom Group, Inc. (a)................................................... 241,782 212,850
49,200 LCI International, Inc. (a)................................................ 739,740 1,008,600
37,000 MIDCOM Communications, Inc. (a)............................................ 573,297 675,250
----------- -----------
1,554,819 1,896,700
----------- -----------
WASTE DISPOSAL-1.80%
22,700 United Waste System, Inc. (a).............................................. 698,075 845,575
----------- -----------
TOTAL COMMON STOCKS........................................................ $32,432,881 $40,777,663
----------- -----------
----------- -----------
</TABLE>
52
<PAGE>
SHORT-TERM INVESTMENTS-10.58%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
---------- -----------
<C> <S> <C>
BANKS-4.60%
$2,160,000 First Trust Money Market Variable Rate Time Deposit, Current
rate -- 5.51%............................................................ $2,160,000
-----------
BROKERAGE AND INVESTMENT-1.74%
816,000 Goldman Sachs Master Variable Rate Note, Current rate -- 5.94%............. 816,000
-----------
DIVERSIFIED FINANCE-4.24%
1,992,000 Associates Corp. Master Variable Rate Note, Current rate -- 5.52%.......... 1,992,000
-----------
TOTAL SHORT-TERM INVESTMENTS............................................... $4,968,000
-----------
TOTAL INVESTMENTS IN SECURITIES (COST: $37,400,881) (B).................... $45,745,663
-----------
-----------
</TABLE>
(a) Presently not paying dividend income.
(b) At December 31, 1995, the cost of securities for federal income tax
purposes was $37,400,881 and the aggregate gross unrealized appreciation
and depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation........................... $10,365,923
Unrealized depreciation........................... (2,021,141)
---------------------------------------------------------------
Net unrealized appreciation....................... $ 8,344,782
---------------------------------------------------------------
</TABLE>
(c) See Note A of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets. Market value of investments in foreign
securities represents 1.17% of net assets as of December 31, 1995.
53
<PAGE>
FORTIS SERIES FUND, INC.
Statements of Assets and Liabilities
December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY U.S. GOV'T. DIVERSIFIED GLOBAL
MARKET SECURITIES INCOME BOND
SERIES SERIES SERIES SERIES
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in
securities, as
detailed in the
accompanying
schedules, at
market (cost
$42,985,414;
$172,728,292;
$104,404,109;
$12,138,403;
$27,053,966;
$282,786,986;
$18,792,098;
$50,670,916;
$148,602,103;
$356,825,620;
$20,568,099;
$37,400,881;
respectively)
(Note A)........ $ 43,034,800 $180,771,527 $107,537,886 $ 12,639,669
Cash on deposit
with
custodian....... 727 17,374 72,406 --
Foreign currency
on deposit with
custodian....... -- -- -- 4,847
Collateral for
securities
lending
transactions
(Note A)........ -- -- -- --
Receivables:
Unrealized
appreciation
on forward
foreign
currency
contracts -
net (Notes A
and C)........ -- -- -- 82,475
Investment
securities
sold.......... -- 61 -- --
Interest and
dividends..... 15,026 1,851,280 1,572,337 476,882
Subscriptions of
capital
stock......... 289 128,827 31,614 5,026
Prepaid
expenses........ 555 -- -- --
------------- ------------- ------------- -------------
TOTAL ASSETS........ 43,051,397 182,769,069 109,214,243 13,208,899
------------- ------------- ------------- -------------
LIABILITIES:
Unrealized
depreciation on
forward foreign
currency
contracts - net
(Notes A and
C).............. -- -- -- --
Payable upon
return of
securities
loaned (Note
A).............. -- -- -- --
Payable for
investment
securities
purchased....... -- -- -- --
Redemptions of
capital stock... 1,225,632 667 40,536 --
Payable for
investment
advisory and
management fees
(Note B)........ 10,857 71,213 43,405 8,325
Accounts payable
and accrued
expenses........ 7,795 9,858 10,556 13,100
------------- ------------- ------------- -------------
TOTAL LIABILITIES... 1,244,284 81,738 94,497 21,425
------------- ------------- ------------- -------------
NET ASSETS:
Net proceeds of
capital stock,
par value $.01
per
share-authorized
20,000,000,000
shares;
outstanding
3,861,531;
16,366,692;
8,946,660;
1,167,231;
2,888,618;
21,479,436;
1,757,747;
4,638,850;
13,017,895;
18,899,411;
1,892,068;
3,703,609
shares,
respectively.... 39,655,866 183,086,924 106,599,510 12,487,941
Unrealized
appreciation of
investments in
securities and
other assets and
liabilities
denominated in
foreign
currency........ 49,386 8,043,235 3,133,777 584,030
Undistributed net
investment
income.......... 2,222,937 11,853,720 8,212,963 --
Accumulated net
realized gain
(loss) from sale
of investments
and foreign
currency........ (121,076 ) (20,296,548 ) (8,826,504 ) 115,503
------------- ------------- ------------- -------------
TOTAL NET ASSETS.... $ 41,807,113 $182,687,331 $109,119,746 $ 13,187,474
------------- ------------- ------------- -------------
NET ASSET VALUE PER
SHARE............. $10.83 $11.16 $12.20 $11.30
------------- ------------- ------------- -------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
54
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HIGH ASSET GLOBAL ASSET GROWTH & GLOBAL GROWTH INTERNATIONAL AGGRESSIVE
YIELD ALLOCATION ALLOCATION INCOME GROWTH STOCK STOCK GROWTH
SERIES SERIES SERIES SERIES SERIES SERIES SERIES SERIES
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments in
securities, as
detailed in the
accompanying
schedules, at
market (cost
$42,985,414;
$172,728,292;
$104,404,109;
$12,138,403;
$27,053,966;
$282,786,986;
$18,792,098;
$50,670,916;
$148,602,103;
$356,825,620;
$20,568,099;
$37,400,881;
respectively)
(Note A).......... $27,512,470 $338,658,785 $19,855,592 $59,393,192 $207,752,127 $530,748,765 $21,893,854 $45,745,663
Cash on deposit with
custodian......... 229 1,073,474 -- 9,164 -- 102 -- 124,284
Foreign currency on
deposit with
custodian......... -- -- 20,336 -- -- -- -- --
Collateral for
securities lending
transactions (Note
A)................ -- -- -- -- 38,117,276 -- -- --
Receivables:
Unrealized
appreciation on
forward foreign
currency
contracts - net
(Notes A and
C).............. -- -- 14,026 -- -- -- -- --
Investment
securities
sold............ -- -- -- -- -- -- 4,701 --
Interest and
dividends....... 620,645 2,710,805 227,073 129,595 140,014 158,250 49,603 22,334
Subscriptions of
capital stock... 14,758 264,777 8,842 38,050 166,691 353,233 22,803 1,080,587
Prepaid expenses.... 350 -- -- 415 -- -- 852 311
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
TOTAL ASSETS........ 28,148,452 342,707,841 20,125,869 59,570,416 246,176,108 531,260,350 21,971,813 46,973,179
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
LIABILITIES:
Unrealized
depreciation on
forward foreign
currency
contracts - net
(Notes A and
C).............. -- -- -- -- -- -- 564 --
Payable upon
return of
securities
loaned (Note
A).............. -- -- -- -- 38,117,276 -- -- --
Payable for
investment
securities
purchased....... -- 1,033,750 20,335 -- -- -- 625,167 --
Redemptions of
capital stock... -- -- 254 -- -- 11,690 -- --
Payable for
investment
advisory and
management fees
(Note B)........ 11,675 140,102 14,944 34,049 121,188 276,106 14,851 26,511
Accounts payable
and accrued
expenses........ 7,630 22,683 10,166 3,437 24,741 28,027 3,909 3,406
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
TOTAL LIABILITIES... 19,305 1,196,535 45,699 37,486 38,263,205 315,823 644,491 29,917
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
NET ASSETS:
Net proceeds of
capital stock,
par value $.01
per
share-authorized
20,000,000,000
shares;
outstanding
3,861,531;
16,366,692;
8,946,660;
1,167,231;
2,888,618;
21,479,436;
1,757,747;
4,638,850;
13,017,895;
18,899,411;
1,892,068;
3,703,609
shares,
respectively.... 28,965,063 292,381,214 18,921,549 51,194,195 162,516,012 384,050,669 19,891,023 40,046,571
Unrealized
appreciation of
investments in
securities and
other assets and
liabilities
denominated in
foreign
currency........ 458,504 55,871,799 1,078,610 8,722,276 59,150,637 173,923,145 1,325,595 8,344,782
Undistributed net
investment
income.......... 30,053 135,184 690 22,271 27,390 28,730 12,900 --
Accumulated net
realized gain
(loss) from sale
of investments
and foreign
currency........ (1,324,473 ) (6,876,891 ) 79,321 (405,812 ) (13,781,136 ) (27,058,017 ) 97,804 (1,448,091 )
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
TOTAL NET ASSETS.... $28,129,147 $341,511,306 $20,080,170 $59,532,930 $207,912,903 $530,944,527 $21,327,322 $46,943,262
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
NET ASSET VALUE PER
SHARE............. $9.74 $15.90 $11.42 $12.83 $15.97 $28.09 $11.27 $12.68
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
</TABLE>
55
<PAGE>
FORTIS SERIES FUND, INC.
Statements of Operations
For the Year Ended December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY U.S. GOV'T. DIVERSIFIED GLOBAL
MARKET SECURITIES INCOME BOND
SERIES SERIES SERIES SERIES
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
NET INVESTMENT
INCOME:
Income:
Interest
income........ $2,386,576 $12,737,301 $8,544,823 $ 610,285
Dividend
Income........ -- -- -- --
Fee income (Note
A)............ -- -- -- --
----------- ----------- ----------- -----------
Total Income*..... 2,386,576 12,737,301 8,544,823 610,285
----------- ----------- ----------- -----------
Expenses:
Investment
advisory and
management
fees (Note
B)............ 122,669 809,341 486,523 72,526
Legal and
auditing fees
(Note B)...... 12,750 23,470 19,500 24,017
Custodian
fees.......... 14,400 26,000 20,687 20,000
Shareholders'
notices and
reports....... 10,700 45,700 27,295 5,875
Directors' fees
and
expenses...... 1,700 7,100 4,299 790
Other........... 1,427 14,260 9,790 1,232
----------- ----------- ----------- -----------
Total Expenses.... 163,646 925,871 568,094 124,440
----------- ----------- ----------- -----------
NET INVESTMENT
INCOME.............. 2,222,930 11,811,430 7,976,729 485,845
----------- ----------- ----------- -----------
REALIZED AND
UNREALIZED GAIN
(LOSS) (NOTE A):
Net realized gain
(loss) from:
Investments..... -- (173,955 ) (1,398,057 ) 281,259
Foreign currency
transactions... -- -- -- 34,916
----------- ----------- ----------- -----------
NET REALIZED GAIN
(LOSS) ON
INVESTMENTS AND
FOREIGN CURRENCY
TRANSACTIONS........ -- (173,955 ) (1,398,057 ) 316,175
----------- ----------- ----------- -----------
Net change in
unrealized
appreciation
(depreciation)
of:
Investments..... 47,894 18,308,069 9,667,974 490,271
Translation of
other assets
and
liabilities
denominated in
foreign
currency...... -- -- -- 93,759
----------- ----------- ----------- -----------
NET CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION) ON
INVESTMENTS AND
FOREIGN
CURRENCY............ 47,894 18,308,069 9,667,974 584,030
----------- ----------- ----------- -----------
NET GAIN (LOSS) ON
INVESTMENTS AND
FOREIGN CURRENCY.... 47,894 18,134,114 8,269,917 900,205
----------- ----------- ----------- -----------
NET INCREASE IN NET
ASSETS RESULTING
FROM OPERATIONS..... $2,270,824 $29,945,544 $16,246,646 $1,386,050
----------- ----------- ----------- -----------
</TABLE>
<TABLE>
<CAPTION>
*Net of foreign witholding taxes of:
<S> <C>
Global Bond Series $4,969
Global Asset Allocation Series 16,454
Global Growth Series 183,208
International Stock Series 39,184
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
56
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HIGH ASSET GLOBAL ASSET GROWTH & GLOBAL GROWTH INTERNATIONAL AGGRESSIVE
YIELD ALLOCATION ALLOCATION INCOME GROWTH STOCK STOCK GROWTH
SERIES SERIES SERIES SERIES SERIES SERIES SERIES SERIES
----------- ----------- ------------ ------------ ----------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET INVESTMENT
INCOME:
Income:
Interest income... $2,516,968 $13,897,170 $ 427,149 $ 362,961 $1,329,356 $ 4,697,873 $ 95,914 $ 389,558
Dividend Income... -- 600,529 115,159 932,562 1,129,393 800,077 211,597 4,126
Fee income (Note
A).............. -- -- -- -- 33,911 -- -- --
----------- ----------- ------------ ------------ ----------- ------------ ------------- ------------
Total Income*....... 2,516,968 14,497,699 542,308 1,295,523 2,492,660 5,497,950 307,511 393,684
----------- ----------- ------------ ------------ ----------- ------------ ------------- ------------
Expenses:
Investment
advisory and
management fees
(Note B)........ 105,511 1,484,851 107,500 247,814 1,210,019 2,873,197 102,257 197,016
Legal and auditing
fees (Note B)... 13,000 32,200 14,965 13,000 22,807 34,600 14,500 12,600
Custodian fees.... 8,400 44,500 27,557 13,000 90,878 61,500 17,700 13,000
Shareholders'
notices and
reports......... 3,965 73,550 1,516 5,650 40,981 106,215 1,150 4,500
Directors' fees
and expenses.... 850 12,500 600 1,500 7,807 18,300 700 1,150
Other............. 1,116 19,347 816 1,540 11,813 24,899 800 951
----------- ----------- ------------ ------------ ----------- ------------ ------------- ------------
Total Expenses...... 132,842 1,666,948 152,954 282,504 1,384,305 3,118,711 137,107 229,217
----------- ----------- ------------ ------------ ----------- ------------ ------------- ------------
NET INVESTMENT
INCOME.............. 2,384,126 12,830,751 389,354 1,013,019 1,108,355 2,379,239 170,404 164,467
----------- ----------- ------------ ------------ ----------- ------------ ------------- ------------
REALIZED AND
UNREALIZED GAIN
(LOSS) (NOTE A):
Net realized gain
(loss) from:
Investments..... (1,238,691 ) 1,295,064 239,277 (355,389 ) (7,954,137 ) (947,755 ) 291,092 (1,338,512 )
Foreign currency
transactions... -- -- (4,088 ) -- 4,042 -- (53,426 ) --
----------- ----------- ------------ ------------ ----------- ------------ ------------- ------------
NET REALIZED GAIN
(LOSS) ON
INVESTMENTS AND
FOREIGN CURRENCY
TRANSACTIONS........ (1,238,691 ) 1,295,064 235,189 (355,389 ) (7,950,095 ) (947,755 ) 237,666 (1,338,512 )
----------- ----------- ------------ ------------ ----------- ------------ ------------- ------------
Net change in
unrealized
appreciation
(depreciation)
of:
Investments..... 1,145,719 43,924,636 1,062,307 8,815,109 51,533,102 106,596,487 1,325,755 7,867,124
Translation of
other assets
and
liabilities
denominated in
foreign
currency...... -- -- 16,303 -- (246 ) -- (160 ) --
----------- ----------- ------------ ------------ ----------- ------------ ------------- ------------
NET CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION) ON
INVESTMENTS AND
FOREIGN
CURRENCY............ 1,145,719 43,924,636 1,078,610 8,815,109 51,532,856 106,596,487 1,325,595 7,867,124
----------- ----------- ------------ ------------ ----------- ------------ ------------- ------------
NET GAIN (LOSS) ON
INVESTMENTS AND
FOREIGN CURRENCY.... (92,972 ) 45,219,700 1,313,799 8,459,720 43,582,761 105,648,732 1,563,261 6,528,612
----------- ----------- ------------ ------------ ----------- ------------ ------------- ------------
NET INCREASE IN NET
ASSETS RESULTING
FROM OPERATIONS..... $2,291,154 $58,050,451 $1,703,153 $9,472,739 $44,691,116 $108,027,971 $ 1,733,665 $ 6,693,079
----------- ----------- ------------ ------------ ----------- ------------ ------------- ------------
Global Bond Series
Global Asset
Allocation Series
Global Growth Series
International Stock
Series
</TABLE>
57
<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 FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1994 1995 1994
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income....... $ 2,222,930 $ 1,570,828 $11,811,430 $14,140,980
Net realized gain (loss) on
investments and foreign
currency transactions..... -- -- (173,955 ) (19,946,447 )
Net change in unrealized
appreciation
(depreciation) of
investments and foreign
currency.................. 47,894 655 18,308,069 (9,243,143 )
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS.................... 2,270,824 1,571,483 29,945,544 (15,048,610 )
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment
income.................... (1,570,821 ) -- (8,675 ) (14,140,980 )
From net realized gains on
investments............... -- -- -- (59,124 )
Excess distributions of net
realized gains............ -- -- -- (52,219 )
------------ ------------ ------------ ------------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS.................. (1,570,821 ) -- (8,675 ) (14,252,323 )
------------ ------------ ------------ ------------
CAPITAL STOCK SOLD AND
REPURCHASED (NOTE F):
Proceeds from sale of
shares.................... 36,255,680 57,442,716 10,572,854 14,559,877
Proceeds from shares issued
as a result of reinvested
dividends................. 1,570,821 -- 8,675 14,252,323
Less cost of repurchase..... (41,552,126 ) (42,863,568 ) (30,487,565 ) (62,443,054 )
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM SHARES
TRANSACTIONS.................. (3,725,625 ) 14,579,148 (19,906,036 ) (33,630,854 )
------------ ------------ ------------ ------------
TOTAL INCREASE (DECREASE) IN
NET ASSETS.................... (3,025,622 ) 16,150,631 10,030,833 (62,931,787 )
NET ASSETS:
Beginning of period......... 44,832,735 28,682,104 172,656,498 235,588,285
------------ ------------ ------------ ------------
End of period (Note E)...... $41,807,113 $44,832,735 $182,687,331 $172,656,498
------------ ------------ ------------ ------------
</TABLE>
<TABLE>
<CAPTION>
GLOBAL
ASSET
ALLOCATION
SERIES GROWTH & INCOME SERIES
- ----------------------------------------------------------------------
FOR THE
PERIOD FROM
APRIL 26,
1994
FOR THE FOR THE (INCEPTION)
YEAR ENDED YEAR ENDED TO
DECEMBER DECEMBER DECEMBER 31,
31, 1995 31, 1995 1994
----------- ----------- ------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income....... $ 389,354 $1,013,019 $ 171,137
Net realized gain (loss) on
investments and foreign
currency transactions..... 235,189 (355,389 ) (50,423 )
Net change in unrealized
appreciation
(depreciation) of
investments and foreign
currency.................. 1,078,610 8,815,109 (92,833 )
----------- ----------- ------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS.................... 1,703,153 9,472,739 27,881
----------- ----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment
income.................... (384,576 ) (994,141 ) (167,744 )
From net realized gains on
investments............... (159,956 ) -- --
Excess distributions of net
realized gains............ -- -- --
----------- ----------- ------------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS.................. (544,532 ) (994,141 ) (167,744 )
----------- ----------- ------------
CAPITAL STOCK SOLD AND
REPURCHASED (NOTE F):
Proceeds from sale of
shares.................... 18,857,559 34,778,769 16,474,699
Proceeds from shares issued
as a result of reinvested
dividends................. 544,532 994,141 167,744
Less cost of repurchase..... (480,542 ) (994,663 ) (226,495 )
----------- ----------- ------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM SHARES
TRANSACTIONS.................. 18,921,549 34,778,247 16,415,948
----------- ----------- ------------
TOTAL INCREASE (DECREASE) IN
NET ASSETS.................... 20,080,170 43,256,845 16,276,085
NET ASSETS:
Beginning of period......... -- 16,276,085 --
----------- ----------- ------------
End of period (Note E)...... $20,080,170 $59,532,930 $16,276,085
----------- ----------- ------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
58
<PAGE>
<TABLE>
<CAPTION>
GLOBAL BOND
DIVERSIFIED INCOME SERIES SERIES HIGH YIELD SERIES ASSET ALLOCATION SERIES
- ----------------------------------------------------------------------------------------------------------------------------
FOR THE
PERIOD FROM
APRIL 26,
1994
FOR THE FOR THE FOR THE FOR THE (INCEPTION) FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED TO YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER DECEMBER DECEMBER DECEMBER 31, DECEMBER 31, DECEMBER
1995 31, 1994 31, 1995 31, 1995 1994 1995 31, 1994
------------ ----------- ----------- ----------- ------------ ------------ -----------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income....... $ 7,976,729 $7,828,731 $ 485,845 $2,384,126 $ 627,346 $12,830,751 $9,774,456
Net realized gain (loss) on
investments and foreign
currency transactions..... (1,398,057 ) (7,154,191 ) 316,175 (1,238,691 ) 56 1,295,064 (7,840,971 )
Net change in unrealized
appreciation
(depreciation) of
investments and foreign
currency.................. 9,667,974 (6,437,751 ) 584,030 1,145,719 (687,215 ) 43,924,636 (2,146,775 )
------------ ----------- ----------- ----------- ------------ ------------ -----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS.................... 16,246,646 (5,763,211 ) 1,386,050 2,291,154 (59,813 ) 58,050,451 (213,290 )
------------ ----------- ----------- ----------- ------------ ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment
income.................... (3,947 ) (7,830,824 ) (485,845 ) (2,354,226 ) (627,346 ) (12,700,612 ) (9,774,456 )
From net realized gains on
investments............... -- -- (200,672 ) (366 ) -- -- --
Excess distributions of net
realized gains............ -- (34,075 ) -- (84,407 ) (912 ) (287,248 ) (38,691 )
------------ ----------- ----------- ----------- ------------ ------------ -----------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS.................. (3,947 ) (7,864,899 ) (686,517 ) (2,438,999 ) (628,258 ) (12,987,860 ) (9,813,147 )
------------ ----------- ----------- ----------- ------------ ------------ -----------
CAPITAL STOCK SOLD AND
REPURCHASED (NOTE F):
Proceeds from sale of
shares.................... 7,246,843 26,359,470 14,567,624 15,339,416 15,805,154 31,823,988 63,664,374
Proceeds from shares issued
as a result of reinvested
dividends................. 3,947 7,864,899 686,517 2,438,999 628,258 12,987,860 9,813,147
Less cost of repurchase..... (12,687,564 ) (14,871,791) (2,766,200 ) (3,207,237 ) (2,039,527 ) (8,956,238 ) (7,460,742 )
------------ ----------- ----------- ----------- ------------ ------------ -----------
NET INCREASE (DECREASE) IN NET
ASSETS FROM SHARES
TRANSACTIONS.................. (5,436,774 ) 19,352,578 12,487,941 14,571,178 14,393,885 35,855,610 66,016,779
------------ ----------- ----------- ----------- ------------ ------------ -----------
TOTAL INCREASE (DECREASE) IN
NET ASSETS.................... 10,805,925 5,724,468 13,187,474 14,423,333 13,705,814 80,918,201 55,990,342
NET ASSETS:
Beginning of period......... 98,313,821 92,589,353 -- 13,705,814 -- 260,593,105 204,602,763
------------ ----------- ----------- ----------- ------------ ------------ -----------
End of period (Note E)...... $109,119,746 $98,313,821 $13,187,474 $28,129,147 $13,705,814 $341,511,306 $260,593,105
------------ ----------- ----------- ----------- ------------ ------------ -----------
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL
STOCK
GLOBAL GROWTH SERIES GROWTH STOCK SERIES SERIES AGGRESSIVE GROWTH SERIES
- ----------------------------------------------------------------------------------------------------------------------------
FOR THE
PERIOD FROM
APRIL 26,
1994
FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE (INCEPTION)
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED TO
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER DECEMBER DECEMBER DECEMBER
1995 1994 1995 31, 1994 31, 1995 31, 1995 31, 1994
------------ ------------ ------------ ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income....... $ 1,108,355 $ 972,581 $ 2,379,239 $2,750,449 $ 170,404 $ 164,467 $ 54,387
Net realized gain (loss) on
investments and foreign
currency transactions..... (7,950,095 ) (5,130,583 ) (947,755 ) (12,889,598) 237,666 (1,338,512 ) (109,579 )
Net change in unrealized
appreciation
(depreciation) of
investments and foreign
currency.................. 51,532,856 738,355 106,596,487 1,797,152 1,325,595 7,867,124 477,658
------------ ------------ ------------ ----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS.................... 44,691,116 (3,419,647 ) 108,027,971 (8,341,997 ) 1,733,665 6,693,079 422,466
------------ ------------ ------------ ----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment
income.................... (1,085,007 ) (972,581 ) (2,351,222 ) (2,749,736 ) (104,078 ) (164,573 ) (54,281 )
From net realized gains on
investments............... -- -- -- -- (193,288 ) -- --
Excess distributions of net
realized gains............ -- -- -- -- -- -- --
------------ ------------ ------------ ----------- ----------- ----------- -----------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS.................. (1,085,007 ) (972,581 ) (2,351,222 ) (2,749,736 ) (297,366 ) (164,573 ) (54,281 )
------------ ------------ ------------ ----------- ----------- ----------- -----------
CAPITAL STOCK SOLD AND
REPURCHASED (NOTE F):
Proceeds from sale of
shares.................... 27,895,172 78,038,867 60,908,396 96,931,353 19,917,541 31,077,776 14,286,485
Proceeds from shares issued
as a result of reinvested
dividends................. 1,085,007 974,380 2,351,222 2,749,735 297,366 164,631 54,281
Less cost of repurchase..... (9,320,296 ) (5,856,364 ) (15,474,378 ) (15,399,487) (323,884 ) (4,353,338 ) (1,183,264 )
------------ ------------ ------------ ----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET
ASSETS FROM SHARES
TRANSACTIONS.................. 19,659,883 73,156,883 47,785,240 84,281,601 19,891,023 26,889,069 13,157,502
------------ ------------ ------------ ----------- ----------- ----------- -----------
TOTAL INCREASE (DECREASE) IN
NET ASSETS.................... 63,265,992 68,764,655 153,461,989 73,189,868 21,327,322 33,417,575 13,525,687
NET ASSETS:
Beginning of period......... 144,646,911 75,882,256 377,482,538 304,292,670 -- 13,525,687 --
------------ ------------ ------------ ----------- ----------- ----------- -----------
End of period (Note E)...... $207,912,903 $144,646,911 $530,944,527 $377,482,538 $21,327,322 $46,943,262 $13,525,687
------------ ------------ ------------ ----------- ----------- ----------- -----------
</TABLE>
59
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements
- --------------------------------------------------------------------------------
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
The fund is an open-end management investment company which currently is
comprised of twelve 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, Growth & Income 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:
- 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.
- The objective of the "U.S. Government Securities Series" is a high level of
current income 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 a high level of current
income by investing primarily in a diversified portfolio of government
securities and investment grade corporate bonds.
- 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.
- The objective of the "High Yield Series" is maximum total return through
current income and capital appreciation by investing primarily in
high-yield, high-risk fixed-income securities.
- The objective of the "Asset Allocation Series" is maximum total return on
invested capital, to be derived primarily from capital appreciation,
dividends, and interest.
- 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 investing in
global securities.
- 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 primary objective of the "Global Growth Series" is long-term
appreciation, which it seeks primarily by investing in a global portfolio
of equity securities, allocated among diverse international markets.
- The primary objective of the "Growth Stock Series" is short and long-term
capital appreciation. The Series will seek to meet these objectives by
investing primarily in common stocks and securities convertible into common
stocks.
- 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 separate accounts in connection with
variable insurance contracts and policies.
The inception of Global Bond Series, Global Asset Allocation Series and
International Stock Series was December 14, 1994, and the commencement of
operations was January 3, 1995.
The significant accounting policies followed by the Funds are summarized as
follows:
SECURITY VALUATION: Investments in securities traded on a U.S. or foreign
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 December 31,
1995 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.
60
<PAGE>
- --------------------------------------------------------------------------------
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 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 or upon receipt of ex-dividend
notification in the case of certain foreign securities. Interest income is
recorded on the accrual basis. Realized security gains and losses are
determined using the identified cost method. For financial reporting
purposes, except for original issue discount, each portfolio does not
amortize bond premium and market discount, except for Global Bond Series and
Global Asset Allocation Series which amortize all bond premium and discount.
For the year ended December 31, 1995, the cost of purchases and proceeds from
sales of securities for Money Market Series were $280,382,994 and
$282,130,172, 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.......... $191,893,201 $201,946,870
Diversified Income Series.................. 137,650,888 134,320,481
Global Bond Series......................... 25,458,744 14,164,692
High Yield Series.......................... 39,629,779 25,682,051
Asset Allocation Series.................... 296,631,298 268,077,885
Global Asset Allocation Series............. 18,291,692 4,191,952
Growth & Income Series..................... 35,913,729 4,946,636
Global Growth Series....................... 68,482,057 43,120,480
Growth Stock Series........................ 118,194,580 76,534,569
International Stock Series................. 21,902,183 4,043,678
Aggressive Growth Series................... 28,494,434 4,612,827
</TABLE>
In the Global Asset Allocation Series for the period from January 3, 1995 to
December 31, 1995, brokerage commissions paid to an affiliated broker
amounted to $396.
LENDING OF PORTFOLIO SECURITIES: At December 31, 1995, securities valued at
$37,257,813 were on loan to brokers from Global Growth Series. For
collateral, the portfolio's custodian received $38,117,276 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 $33,911
for the year ended December 31, 1995 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 yearly 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 market discount as
ordinary income for tax purposes, 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 have been
made to increase (decrease) accumulated net realized gain (loss) with an
offsetting increase (decrease) to undistributed net investment income.
<TABLE>
<CAPTION>
U.S. Global
Government Diversified Asset Global
Securities Income Allocation Growth International
Series Series Series Series Stock Series
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Accumulated Net Realized Gain
(Loss)....................... $(42,295 ) $(236,234) $4,088 $(4,042) $ 53,426
Undistributed Net Investment
Income....................... $42,295 $ 236,234 $(4,088) $ 4,042 $(53,426)
</TABLE>
In addition, the Money Market Series, due to permanent book-to-tax
differences, accumulated net realized loss decreased by $6,298, which
resulted in a reclassification adjustment to decrease paid-in-capital by
$6,298.
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 expire.
<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 December 31, 1995, 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 December 31,
1995 were $2,363,250 U.S. Government Series; $1,777,500 Diversified Income
Series; $3,832,500 Asset Allocation Series; $2,868,542 High Yield Series,
61
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
which represents 1.29%, 1.63%, 1.12%, 10.20%, of net assets, respectively.
Pursuant to guidelines adopted by the Board of Directors, certain
unregistered securities are determined to be liquid and are not included
within the percent limitations specified above.
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.
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 assets and
liabilities and disclosure of contingent assets and liabilities at the date
of the financial statements and the reported amounts of increase and decrease
in net assets from operations during the reporting period. Actual results
could differ from those estimates.
B. 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
Series Average Net Assets and 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 .90%
For assets over $100 million .85%
Growth & Income Series For the first $100 million .7%
For assets over $100 million .6%
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 and International
Stock Series have retained sub-advisers under an 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.
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
International Lazard-Freres Asset For the first $100 million .45%
Stock Series Management For assets over $100 .375%
million.
</TABLE>
For the year ended December 31, 1995, 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............................... $ 1,750
U.S. Government Securities Series................. 4,800
Diversified Income Series......................... 5,500
Global Bond Series................................ 16,745
High Yield Series................................. 1,000
Asset Allocation Series........................... 12,500
Global Asset Allocation Series.................... 12,500
Growth & Income Series............................ 1,000
Global Growth Series.............................. 5,664
Growth Stock Series............................... 15,600
International Stock Series........................ 12,000
Aggressive Growth Series.......................... 600
</TABLE>
C. FORWARD FOREIGN CURRENCY CONTRACTS: At December 31, 1995, the Global Bond
Series, the Global Asset Allocation Series and the International Stock Series
entered into forward foreign currency
62
<PAGE>
- --------------------------------------------------------------------------------
exchange contracts that obligated the Series to deliver/receive currencies at
a specified future date. The unrealized appreciation (depreciation) of
$82,475, $14,026 and $(564), 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 Dec. 31, 1995 Be Received Dec. 31, 1995
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Jan. 18, 1996 860,000 $ 1,333,275 1,350,200 $ 1,350,200
British Pound U.S. Dollar
Sterling
Jan. 18, 1996 6,600,000 1,188,469 1,193,866 1,193,866
Danish Krone U.S. Dollar
Jan. 18, 1996 576,099 401,847 645,000 402,236
Deutsche Mark Netherland
Guilder
Jan. 18, 1996 5,775,000 4,028,242 4,089,720 4,089,720
Deutsche Mark U.S. Dollar
Jan. 18, 1996 6,900,000 1,408,428 1,399,212 1,399,212
French Franc U.S. Dollar
Jan. 18, 1996 870,000 542,550 555,294 555,294
Netherland U.S. Dollar
Guilder
Jan. 18, 1996 440,000 440,000 2,190,540 447,133
U.S. Dollar French Franc
Jan. 18, 1996 670,000 670,000 1,082,519 675,083
U.S. Dollar Netherland
Guilder
Jan. 18, 1996 680,000 680,000 3,797,800 683,874
U.S. Dollar Danish Krone
Jan. 18, 1996 751,728 751,728 491,231 761,565
U.S. Dollar British Pound
Sterling
Jan. 18, 1996 1,800,000 1,800,000 2,598,120 1,812,269
U.S. Dollar Deutsche Mark
Jan. 18, 1996 1,940,000 1,940,000 195,552,000 1,896,562
U.S. Dollar Japanese Yen
------------- -------------
$15,184,539 $15,267,014
------------- -------------
</TABLE>
<TABLE>
<CAPTION>
GLOBAL ASSET ALLOCATION SERIES
------------------------------------------------------------------------
Currency U.S. Dollar U.S. Dollar
To Value As Of Value As Of
Be Dec. 31, Currency To Dec. 31,
Settle Date Delivered 1995 Be Received 1995
------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Feb. 13, 1996 93,525 $ 93,525 150,000 $ 93,593
U.S. Netherland
Dollar Guilder
Feb. 13, 1996 400,000 249,581 252,159 252,159
Netherland U.S. Dollar
Guilder
Feb. 14, 1996 12,000,000 116,653 121,298 121,298
Japanese U.S. Dollar
Yen
Feb. 20, 1996 400,000 278,979 285,714 285,714
Deutsche U.S. Dollar
Mark
------------ ------------
$ 738,738 $ 752,764
------------ ------------
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL STOCK SERIES
------------------------------------------------------------------------------
Currency U.S. Dollar U.S. Dollar
To Be Value As Of Currency To Be Value As Of
Settle Date Delivered Dec. 31, 1995 Received Dec. 31, 1995
------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Jan. 2, 1996 40,298 $ 40,298 4,904,218 $ 40,425
U.S. Spanish Peseta
Dollar
Jan. 3, 1996 17,489 17,489 2,121,787 17,490
U.S. Spanish Peseta
Dollar
Jan. 3, 1996 60,500 60,500 334,062 60,280
U.S. Danish Krone
Dollar
Jan. 3, 1996 101,384 101,384 670,980 101,246
U.S. Swedish Krona
Dollar
Jan. 3, 1996 71,409 71,409 45,798 71,106
U.S. British Pound
Dollar Sterling
Jan. 4, 1996 29,595 29,595 19,177 29,774
U.S. British Pound
Dollar Sterling
Jan. 4, 1996 61,242 61,242 87,527 61,153
U.S. Deutsche Mark
Dollar
Jan. 4, 1996 7,191 4,701 4,675 4,675
New U.S. Dollar
Zealand
Dollar
Jan. 5, 1996 11,363 11,363 1,170,352 11,346
U.S. Japanese Yen
Dollar
Jan. 5, 1996 60,731 60,731 39,066 60,653
U.S. British Pound
Dollar Sterling
------------- -------------
$ 458,712 $ 458,148
------------- -------------
</TABLE>
D. At the special shareholders' meeting of June 13, 1995, shareholders of the
Global Bond Series approved a fundamental investment policy change, which
classifies the Series as a non-diversified investment company effective July
3, 1995.
E. NET ASSETS INCLUDE UNDISTRIBUTED NET INVESTMENT INCOME OF:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-----------------------
1995 1994
- ---------------------------------------------------------------------------
<S> <C> <C>
Money Market Series $2,222,937 $ 1,570,828
U.S. Government Securities Series 11,853,720 8,670
Diversified Income Series 8,212,963 3,947
Global Bond Series -- --
High Yield Series 30,053 153
Asset Allocation Series 135,184 5,045
Global Asset Allocation Series 690 --
Growth & Income Series 22,271 3,393
Global Growth Series 27,390 --
Growth Stock Series 28,730 713
International Stock Series 12,900 --
Aggressive Growth Series -- 106
</TABLE>
63
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
F. SHARES OF CAPITAL STOCK SOLD AND REPURCHASED
<TABLE>
<CAPTION>
SHARES ISSUED AS A
RESULT
OF REINVESTED NET INCREASE (DECREASE)
SHARES SOLD DIVIDENDS SHARES REPURCHASED OF SHARES
---------------------- -------------------- ---------------------- -----------------------
1995 1994 1995 1994 1995 1994 1995 1994
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Money Market Series 3,402,945 5,534,894 151,377 -- (3,910,030) (4,121,372) (355,708) 1,413,522
U.S. Government
Securities Series 1,003,644 1,374,168 873 1,513,371 (3,010,238) (6,042,060) (2,005,721) (3,154,521)
Diversified Income Series 634,079 2,249,744 360 755,986 (1,139,383) (1,315,724) (504,944) 1,690,006
Global Bond Series 1,347,679 -- 61,377 -- (241,825) -- 1,167,231 --
High Yield Series 1,501,657 1,585,268 251,886 66,657 (312,519) (204,331) 1,441,024 1,447,594
Asset Allocation Series 2,038,210 4,552,973 831,716 725,867 (605,840) (535,631) 2,264,086 4,743,209
Global Asset Allocation
Series 1,752,325 -- 48,124 -- (42,702) -- 1,757,747 --
Growth & Income Series 3,028,308 1,622,064 79,311 16,661 (85,117) (22,377) 3,022,502 1,616,348
Global Growth Series 1,889,132 6,209,644 70,385 79,949 (695,692) (476,944) 1,263,825 5,812,649
Growth Stock Series 2,352,546 4,372,727 86,651 125,651 (614,975) (701,569) 1,824,222 3,796,809
International Stock
Series 1,894,172 -- 26,914 -- (29,018) -- 1,892,068 --
Aggressive Growth Series 2,658,950 1,500,811 13,701 5,595 (349,765) (125,682) 2,322,886 1,380,724
</TABLE>
64
<PAGE>
- --------------------------------------------------------------------------------
G. FINANCIAL HIGHLIGHTS Selected per share historical data for each of the
Series is presented based upon average fund shares outstanding.
<TABLE>
<CAPTION>
Year Ended December 31,
----------------------------------------------
MONEY MARKET SERIES 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------
Net asset value, beginning of period.............. $ 10.63 $ 10.23 $ 10.21 $ 10.15 $10.19
------- ------- ------- ------- ------
Operations:
Investment income - net......................... .60 .41 .28 .36 .62
Net realized and unrealized gains (losses) on
investments................................... -- (.01) .02 .06 (.02)
------- ------- ------- ------- ------
Total from operations............................. .60 .40 .30 .42 .60
------- ------- ------- ------- ------
Distributions to shareholders:
From investment income - net.................... (.40) -- (.28) (.36) (.64)
------- ------- ------- ------- ------
Net asset value, end of period.................... $ 10.83 $ 10.63 $ 10.23 $ 10.21 $10.15
------- ------- ------- ------- ------
Total Return @.................................... 5.71% 3.92% 2.77% 3.36% 5.91%
Net assets end of period (000s omitted)........... $41,807 $44,833 $28,682 $27,528 $10,737
Ratio of expenses to average daily net assets..... .40% .40% .44% .46% .55%
Ratio of net investment income to average daily
net assets....................................... 5.44% 3.96% 2.74% 3.51% 5.74%
Portfolio turnover rate........................... N/A* N/A* N/A* N/A* N/A*
</TABLE>
* 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 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.............. $ 9.40 $ 10.94 $ 10.73 $ 10.77 $ 9.80
-------- -------- -------- -------- -------
Operations:
Investment income - net......................... .70 .71 .74 .78 .77
Net realized and unrealized gains (losses) on
investments................................... 1.06 (1.54) .46 .15 .98
-------- -------- -------- -------- -------
Total from operations............................. 1.76 (.83) 1.20 .93 1.75
-------- -------- -------- -------- -------
Distributions 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.................... $ 11.16 $ 9.40 $ 10.94 $ 10.73 $ 10.77
-------- -------- -------- -------- -------
Total Return @.................................... 18.78% (6.44%) 9.45% 6.14% 14.36%
Net assets end of period 000s omitted)............ $182,687 $172,656 $235,588 $132,683 $49,751
Ratio of expenses to average daily net assets..... .53% .53% .52% .57% .64%
Ratio of net investment income to average daily
net assets....................................... 6.78% 6.87% 6.49% 7.10% 7.57%
Portfolio turnover rate........................... 115% 187% 141% 135% 77%
</TABLE>
@ These are the portfolios total returns during the period, including
reinvestment of all dividend and and capital gains distributions.
65
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
G. FINANCIAL HIGHLIGHTS (continued): Selected per share historical data for each
of the Series is presented based upon average fund shares outstanding.
<TABLE>
<CAPTION>
Year Ended December 31,
-----------------------------------------------
DIVERSIFIED INCOME SERIES 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
Net asset value, beginning of period.............. $ 10.40 $ 11.93 $ 11.34 $ 11.22 $10.40
-------- ------- ------- ------- ------
Operations:
Investment income - net......................... .88 .87 .87 .82 .81
Net realized and unrealized gains (losses) on
investments................................... .92 (1.53) 1.03 .33 .87
-------- ------- ------- ------- ------
Total from operations............................. 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.................... $ 12.20 $ 10.40 $ 11.93 $ 11.34 $11.22
-------- ------- ------- ------- ------
Total Return @.................................... 17.26% (5.22%) 12.76% 7.08% 14.68%
Net assets end of period (000s omitted)........... $109,120 $98,314 $92,589 $28,490 $8,503
Ratio of expenses to average daily net assets..... .55% .55% .57% .67% .75%
Ratio of net investment income to average daily
net assets....................................... 7.78% 7.59% 7.15% 7.08% 7.42%
Portfolio turnover rate........................... 139% 142% 125% 83% 25%
</TABLE>
@ These are the portfolios total returns during the period, including
reinvestment of all dividend and and capital gains distributions.
<TABLE>
<CAPTION>
GLOBAL BOND SERIES 1995**
<S> <C>
- ------------------------------------------------------------
Net asset value, beginning of period.............. $ 10.00
-------
Operations:
Investment income - net......................... .54
Net realized and unrealized gains (losses) on
investments................................... 1.52
-------
Total from operations............................. 2.06
-------
Distribution to shareholders:
From investment income - net.................... (.54)
From net realized gains......................... (.22)
-------
Total distributions to shareholders............... (.76)
-------
Net asset value, end of period.................... $ 11.30
-------
Total Return @.................................... 19.02%
Net assets end of period (000s omitted)........... $13,187
Ratio of expenses to average daily net assets..... 1.28%*
Ratio of net investment income to average daily
net assets....................................... 5.01%*
Portfolio turnover rate........................... 184%
</TABLE>
* 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. 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.
66
<PAGE>
- --------------------------------------------------------------------------------
G. FINANCIAL HIGHLIGHTS (continued) Selected per share historical data for each
of the Series is presented based upon average fund shares outstanding.
<TABLE>
<CAPTION>
Year Ended
December 31,
-----------------
HIGH YIELD SERIES 1995 1994**
<S> <C> <C>
- ----------------------------------------------------------------------
Net asset value, beginning of period.............. $ 9.47 $ 10.00
------- -------
Operations:
Investment income - net......................... 1.15 .71
Net realized and unrealized gains (losses) on
investments................................... .30 (.53)
------- -------
Total from operations............................. 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.................... $ 9.74 $ 9.47
------- -------
Total Return @.................................... 12.73% (.75%)
Net assets end of period (000s omitted)........... $28,129 $13,706
Ratio of expenses to average daily net assets..... .63% .75%*
Ratio of net investment income to average daily
net assets....................................... 11.30% 10.44%*
Portfolio turnover rate........................... 130% 20%
</TABLE>
* 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. 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.
<TABLE>
<CAPTION>
Year Ended December 31,
-------------------------------------------------------
ASSET ALLOCATION SERIES 1995 1994 1993 1992 1991
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period................... $ 13.56 $ 14.14 $ 13.28 $ 12.81 $ 10.37
------- ------- ------- ------- -------
Operations:
Investment income - net.............................. .65 .56 .52 .62 .59
Net realized and unrealized gains (losses) on
investments........................................ 2.35 (.58) .92 .47 2.43
------- ------- ------- ------- -------
Total from operations.................................. 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......................... $ 15.90 $ 13.56 $ 14.14 $ 13.28 $ 12.81
------- ------- ------- ------- -------
Total Return @......................................... 21.97% (.31%) 9.79% 6.95% 27.65%
Net assets end of period (000s omitted)................ $341,511 $260,593 $204,603 $89,076 $31,821
Ratio of expenses to average daily net assets.......... .55% .56% .56% .60% .70%
Ratio of net investment income to average daily net
assets................................................ 4.25% 4.05% 3.72% 4.78% 5.04%
Portfolio turnover rate................................ 98% 73% 74% 54% 42%
</TABLE>
@ These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions.
67
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
G. FINANCIAL HIGHLIGHTS (continued): Selected per share historical data for each
of the Series is presented based upon average fund shares outstanding.
<TABLE>
<CAPTION>
GLOBAL ASSET ALLOCATION SERIES 1995**
- ---------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 10.00
--------
Operations:
Investment income - net......................... .35
Net realized and unrealized gains (losses) on
investments................................... 1.55
--------
Total from operations............................. 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.................... $ 11.42
--------
Total Return @.................................... 17.47%
Net assets end of period (000s omitted)........... $ 20,080
Ratio of expenses to average daily net assets..... 1.28%*
Ratio of net investment income to average daily
net assets....................................... 3.26%*
Portfolio turnover rate........................... 44%
</TABLE>
* 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. 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.
<TABLE>
<CAPTION>
Year Ended December
31,
--------------------
GROWTH & INCOME SERIES 1995 1994**
- ---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 10.07 $ 10.00
-------- --------
Operations:
Investment income - net......................... .33 .21
Net realized and unrealized gains (losses) on
investments................................... 2.76 .07
-------- --------
Total from operations............................. 3.09 .28
-------- --------
Distribution to shareholders:
From investment income - net.................... (.33) (.21 )
-------- --------
Net asset value, end of period.................... $ 12.83 $ 10.07
-------- --------
Total Return @.................................... 29.70% 1.74%
Net assets end of period (000s omitted)........... $ 59,533 $16,276
Ratio of expenses to average daily net assets..... .80% .86%*
Ratio of net investment income to average daily
net assets....................................... 2.86% 3.12%*
Portfolio turnover rate........................... 17% 2%
</TABLE>
* 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. 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.
68
<PAGE>
- --------------------------------------------------------------------------------
G. FINANCIAL HIGHLIGHTS (continued): Selected per share historical data for each
of the Series is presented based upon average fund shares outstanding.
<TABLE>
<CAPTION>
Year Ended December 31,
-------------------------------------------
GLOBAL GROWTH SERIES 1995 1994 1993 1992**
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period................... $ 12.31 $ 12.77 $ 10.86 $ 9.82
------- ------- ------- -------
Operations:
Investment income - net.............................. .09 .10 .06 .05
Net realized and unrealized gains (losses) on
investments........................................ 3.66 (.46) 1.91 1.04
------- ------- ------- -------
Total from operations.................................. 3.75 (.36) 1.97 1.09
------- ------- ------- -------
Distribution to shareholders:
From investment income - net......................... (.09) (.10) (.06) (.05)
------- ------- ------- -------
Net asset value, end of period......................... $ 15.97 $ 12.31 $ 12.77 $ 10.86
------- ------- ------- -------
Total Return @......................................... 30.49% (2.98%) 17.92% 10.88%
Net assets end of period (000s omitted)................ $207,913 $144,647 $75,882 $11,091
Ratio of expenses to average daily net assets.......... .80% .81% 1.02% 1.22%*
Ratio of net investment income to average daily net
assets................................................ .64% .82% .53% .73%*
Portfolio turnover rate................................ 29% 20% 19% 21%
</TABLE>
* 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. 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.
<TABLE>
<CAPTION>
Year Ended December 31,
-------------------------------------------------------
GROWTH STOCK SERIES 1995 1994 1993 1992 1991
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period................... $ 22.11 $ 22.92 $ 21.15 $ 20.68 $ 13.57
------- ------- ------- ------- -------
Operations:
Investment income - net.............................. .13 .18 .09 .18 .22
Net realized and unrealized gains (losses) on
investments........................................ 5.98 (.81) 1.77 .47 7.11
------- ------- ------- ------- -------
Total from operations.................................. 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......................... $ 28.09 $ 22.11 $ 22.92 $ 21.15 $ 20.68
------- ------- ------- ------- -------
Total Return @......................................... 27.66% (2.82%) 8.78% 2.94% 53.50%
Net assets end of period (000s omitted)................ $530,945 $377,483 $304,293 $188,172 $100,690
Ratio of expenses to average daily net assets.......... .67% .68% .69% .76% .81%
Ratio of net investment income to average daily net
assets................................................ .51% .81% .46% .92% 1.28%
Portfolio turnover rate................................ 20% 19% 26% 24% 31%
</TABLE>
@ These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions.
69
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
G. FINANCIAL HIGHLIGHTS (continued): Selected per share historical data for each
of the Series is presented based upon average fund shares outstanding.
<TABLE>
<CAPTION>
INTERNATIONAL STOCK SERIES 1995**
- -------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period................... $ 10.00
-------
Operations:
Investment income - net.............................. .14
Net realized and unrealized gains (losses) on
investments........................................ 1.38
-------
Total from operations.................................. 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......................... $ 11.27
-------
Total Return @......................................... 14.35%
Net assets end of period (000s omitted)................ $21,327
Ratio of expenses to average daily net assets.......... 1.14%*
Ratio of net investment income to average daily net
assets................................................ 1.41%*
Portfolio turnover rate................................ 39%
</TABLE>
* 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. 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.
<TABLE>
<CAPTION>
Year Ended December
31,
-------------------
AGGRESSIVE GROWTH SERIES 1995 1994**
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period................... $ 9.80 $10.03
------- -------
Operations:
Investment income - net.............................. .07 .08
Net realized and unrealized gains (losses) on
investments........................................ 2.88 (.23 )
------- -------
Total from operations.................................. 2.95 (.15 )
------- -------
Distribution to shareholders:
From investment income - net......................... (.07) (.08 )
------- -------
Net asset value, end of period......................... $ 12.68 $ 9.80
------- -------
Total Return @......................................... 29.89% (1.89%)
Net assets end of period (000s omitted)................ $46,943 $13,526
Ratio of expenses to average daily net assets.......... .81% .88%*
Ratio of net investment income to average daily net
assets................................................ .58% 1.24%*
Portfolio turnover rate................................ 21% 5%
</TABLE>
* 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. 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.
70
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders
Fortis Series Fund, Inc.:
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments in securities, of Money Market Series, U.S.
Government Securities Series, Diversified Income Series, Global Bond Series,
High Yield Series, Asset Allocation Series, Global Asset Allocation Series,
Growth & Income Series, Global Growth Series, Growth Stock Series, International
Stock Series and Aggressive Growth Series (series within Fortis Series Fund,
Inc.) as of December 31, 1995 and the related statements of operations,
statement of changes in net assets and the financial highlights for the periods
presented. These financial statements and the financial highlights are the
responsibility of fund management. Our responsibility is to express an opinion
on these financial statements and the financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and the financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Investment securities held in custody are confirmed to us by the
custodian. As to securities purchased and sold but not received or delivered, we
request confirmations from brokers, and where replies are not received, we carry
out other appropriate auditing procedures. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and the financial highlights referred
to above present fairly, in all material respects, the financial position of
Money Market Series, U.S. Government Securities Series, Diversified Income
Series, Global Bond Series, High Yield Series, Asset Allocation Series, Global
Asset Allocation Series, Growth & Income Series, Global Growth Series, Growth
Stock Series, International Stock Series and Aggressive Growth Series as of
December 31, 1995 and the results of their operations, changes in their net
assets and the financial highlights for the periods presented, in conformity
with generally accepted accounting principles.
KPMG Peat Marwick LLP
Minneapolis, Minnesota
February 9, 1996
71
<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, MACALESTER COLLEGE
Benjamin S. Jaffray CHAIRMAN, SHEFFIELD GROUP, LTD.
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 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
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 Rotondi
VICE PRESIDENT
Rhonda Schwartz
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.
72
<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 variable universal
life insurance. Traditional life insurance products are issued and
underwritten by Time Insurance Company and Fortis Benefits Insurance Company.
FFG is part of Fortis, Inc., a financial services company which owns or
manages approximately $10 billion in assets. Fortis, Inc., is an affiliate of
Fortis, a worldwide, diversified financial services group jointly owned by
Fortis AMEV of the Netherlands and Fortis AG of Belgium with worldwide assets
in excess of $125 billion.
Like the Fortis name, which comes from the Latin for steadfast, our focus
is on the long term in all we do: the relationships we build, the performance
we seek, the service we provide and the products we offer.
[LOGO] For more information, call your investment representative at Fortis at
(800) 800-2638.
[LOGO]
Fortis Financial Group
P.O. Box 64284
St. Paul, MN 55164
- -----------------
Bulk Rate
US Postage
PAID
Permit No. 3794
Minneapolis, MN
- -----------------
Fortis Series Fund, Inc.
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