<PAGE>
FORTIS FINANCIAL GROUP'S OTHER PRODUCTS AND SERVICES
MUTUAL Fortis Bond Funds MONEY FUND
FUNDS/PORTFOLIOS U.S. GOVERNMENT
CONVENIENT ACCESS TO SECURITIES FUND
A BROAD RANGE OF TAX-FREE MINNESOTA
SECURITIES PORTFOLIO
TAX-FREE NATIONAL
PORTFOLIO
HIGH YIELD PORTFOLIO
Fortis Stock Funds ASSET ALLOCATION
PORTFOLIO
VALUE FUND
GROWTH & INCOME FUND
CAPITAL FUND
FIDUCIARY FUND
GLOBAL GROWTH PORTFOLIO
GROWTH FUND
CAPITAL APPRECIATION
PORTFOLIO
FIXED AND VARIABLE Fortis Opportunity Fixed FIXED ACCOUNT
ANNUITIES & Variable Annuity MONEY MARKET SUBACCOUNT
TAX-DEFERRED Masters Variable Annuity U.S. GOVERNMENT
INVESTING SECURITIES SUBACCOUNT
DIVERSIFIED INCOME
SUBACCOUNT
GLOBAL BOND SUBACCOUNT
HIGH YIELD SUBACCOUNT
ASSET ALLOCATION
SUBACCOUNT
GLOBAL ASSET ALLOCATION
SUBACCOUNT
VALUE SUBACCOUNT
GROWTH & INCOME
SUBACCOUNT
S&P 500 INDEX SUBACCOUNT
BLUE CHIP STOCK
SUBACCOUNT
GLOBAL GROWTH SUBACCOUNT
GROWTH STOCK SUBACCOUNT
INTERNATIONAL STOCK
SUBACCOUNT
AGGRESSIVE GROWTH
SUBACCOUNT
Fortune Fixed Annuities SINGLE PREMIUM ANNUITY
FLEXIBLE PREMIUM ANNUITY
Income Annuities GUARANTEED FOR LIFE
GUARANTEED FOR A
SPECIFIED PERIOD
LIFE Wall Street Series FIXED ACCOUNT
INSURANCE PROTECTION Variable Universal Life MONEY MARKET SUBACCOUNT
AND TAX-DEFERRED Insurance U.S. GOVERNMENT
INVESTMENT SECURITIES SUBACCOUNT
OPPORTUNITY DIVERSIFIED INCOME
SUBACCOUNT
GLOBAL BOND SUBACCOUNT
HIGH YIELD SUBACCOUNT
ASSET ALLOCATION
SUBACCOUNT
GLOBAL ASSET ALLOCATION
SUBACCOUNT
VALUE SUBACCOUNT
GROWTH & INCOME
SUBACCOUNT
S&P 500 INDEX SUBACCOUNT
BLUE CHIP STOCK
SUBACCOUNT
GLOBAL GROWTH SUBACCOUNT
GROWTH STOCK SUBACCOUNT
INTERNATIONAL STOCK
SUBACCOUNT
AGGRESSIVE GROWTH
SUBACCOUNT
Adaptable Life
Universal Life
FORTIS FINANCIAL GROUP manages and distributes mutual funds, annuities and life
insurance products. The mutual funds, variable life and variable annuity
products are distributed through FORTIS INVESTORS, INC. and managed by FORTIS
ADVISERS, INC. The insurance products are issued by FORTIS BENEFITS INSURANCE
COMPANY, FIRST FORTIS LIFE INSURANCE COMPANY and TIME INSURANCE COMPANY.
FOR MORE COMPLETE INFORMATION, INCLUDING CHARGES AND EXPENSES, SEND FOR A
PROSPECTUS. WRITE TO: FORTIS INVESTORS, INC., P.O. BOX 64284, ST. PAUL, MN
55164. READ IT CAREFULLY BEFORE INVESTING OR SENDING MONEY.
<PAGE>
FORTIS SERIES FUND, INC.
SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
HIGHLIGHTS
<TABLE>
<CAPTION>
U.S. GLOBAL
MONEY GOVERNMENT DIVERSIFIED GLOBAL HIGH ASSET ASSET
MARKET SECURITIES INCOME BOND YIELD ALLOCATION ALLOCATION VALUE
SERIES SERIES SERIES SERIES SERIES SERIES SERIES SERIES
------ ---------- ----------- ------ ------ ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 1997:
NET ASSET VALUE PER SHARE:
Beginning of period................... $10.94 $10.57 $11.70 $11.11 $9.83 $16.99 $12.34 $ 11.38
End of period......................... $11.23 $10.88 $12.06 $10.91 $10.33 $18.79 $13.39 $ 12.92
ACCUMULATION UNIT PERFORMANCE:
Fortis Opportunity Annuity/Masters
Variable Annuity.................... +1.90 % +2.22% +2.37% -2.34 % +4.45 % +9.82% +7.79% +12.75%
Harmony Investment Life............... +2.20 % +2.53% +2.68% -2.04 % +4.76 % +10.15% +8.11% +13.08%
Wall Street Series 220/500............ +1.99 % +2.32% +2.46% -2.25 % +4.54 % +9.92% +7.88% +12.85%
Wall Street Series Survivor........... +1.90 % +2.22% +2.37% -2.34 % +4.45 % +9.82% +7.79% +12.75%
</TABLE>
<TABLE>
<CAPTION>
S&P BLUE
GROWTH & 500 CHIP GLOBAL GROWTH INTERNATIONAL AGGRESSIVE
INCOME INDEX STOCK GROWTH STOCK STOCK GROWTH
SERIES SERIES SERIES SERIES SERIES SERIES SERIES
-------- -------- -------- ------ ------ ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 1997:
NET ASSET VALUE PER SHARE:
Beginning of period................... $15.16 $11.47 $11.67 $19.00 $32.59 $12.44 $13.62
End of period......................... $17.40 $13.76 $13.40 $20.26 $34.89 $14.01 $12.87
ACCUMULATION UNIT PERFORMANCE:
Fortis Opportunity Annuity/Masters
Variable Annuity.................... +14.01% +19.21% +14.04% +5.94 % +6.35 % +11.87% -6.16%
Harmony Investment Life............... +14.35% +19.57% +14.38% +6.26 % +6.66 % +12.20% -5.88%
Wall Street Series 220/500............ +14.11% +19.32% +14.14% +6.04 % +6.44 % +11.97% -6.07%
Wall Street Series Survivor........... +14.00% +19.21% +14.04% +5.94 % +6.35 % +11.87% -6.16%
</TABLE>
- --------------------------------------------------------------------------------
OPERATING EXPENSES:*
<TABLE>
<CAPTION>
U.S. GLOBAL
MONEY GOVERNMENT DIVERSIFIED GLOBAL HIGH ASSET ASSET
MARKET SECURITIES INCOME BOND YIELD ALLOCATION ALLOCATION VALUE
SERIES SERIES SERIES SERIES SERIES SERIES SERIES SERIES
------ ---------- ----------- ------ ------ ---------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
FOR THE SIX-MONTH PERIOD ENDED JUNE 30,
1997:
Investment Advisory and Management
Fee.................................. .30% .47% .47% .75% .50% .48% .90% .70%
Other Expenses.......................... .07% .06% .08% .26% .10% .06% .21% .08%
------ --- --- ------ ------ --- ----- ---
TOTAL FORTIS SERIES OPERATING
EXPENSES............................. .37% .53% .55% 1.01% .60% .54% 1.11% .78%
------ --- --- ------ ------ --- ----- ---
</TABLE>
<TABLE>
<CAPTION>
S&P BLUE
GROWTH & 500 CHIP GLOBAL GROWTH INTERNATIONAL AGGRESSIVE
INCOME INDEX STOCK GROWTH STOCK STOCK GROWTH
SERIES SERIES SERIES SERIES SERIES SERIES SERIES
-------- -------- -------- ------ ------ ------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
FOR THE SIX-MONTH PERIOD ENDED JUNE 30,
1997:
Investment Advisory and Management
Fee................................... .66% .40% .90% .70% .62% .85% .70%
Other Expenses.......................... .04% .11% .10% .08% .05% .17% .08%
--- --- -------- ------ ------ ----- ---
TOTAL FORTIS SERIES OPERATING
EXPENSES.............................. .70% .51% 1.00% .78% .67% 1.02% .78%
--- --- -------- ------ ------ ----- ---
</TABLE>
* Represents the expenses of the series itself, without the expenses associated
with the variable annuities or variable universal life insurance policies.
1
<PAGE>
HOW TO USE THIS REPORT
For a quick overview of the fund's
performance during the past
six-months, refer to the Highlights
box. The letter from the portfolio
managers and president 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
Letter to Shareholders 3
Schedules of Investments
Money Market Series 20
U.S. Government Securities Series 21
Diversified Income Series 23
Global Bond Series 27
High Yield Series 29
Asset Allocation Series 33
Global Asset Allocation Series 39
Value Series 44
Growth & Income Series 46
S&P 500 Series 49
Blue Chip Stock Series 54
Global Growth Series 57
Growth Stock Series 61
International Stock Series 63
Aggressive Growth Series 66
Statements of Assets and Liabilities 68
Statements of Operations 70
Statements of Changes in Net Assets 72
Notes to Financial Statements 75
Directors and Officers 89
</TABLE>
2
<PAGE>
Photo
FORTIS SERIES FUND, INC. SEMI-ANNUAL REPORT,
JUNE 30, 1997
DEAR SHAREHOLDER:
The first half of 1997 was somewhat of a roller coaster ride for investors.
Although the broad market experienced a substantial correction because of
concerns about inflation, the upward march of the stock market continued. Led by
the largest market capitalization stocks, the S&P 500 Stock Index posted a gain
of 20.51 percent for the six-month period. This gain is all the more remarkable
given the strong gains recorded in both 1995 and 1996. These robust investment
results reflect the almost ideal investment environment surrounding the equity
market. Not all sectors fared as well as the popular averages, however. Smaller
capitalization stocks, in general, performed particularly poorly while
technology stocks were quite volatile. Global equity funds generally performed
well as many country indices also finished the period at record levels. Fixed
income investments fared somewhat less well during the first half of 1997 due to
periodic concerns over potential inflation.
Strong economic growth of 5.9 percent in the year's first quarter caused
inflationary concerns, resulting in a Federal Reserve increase of 25 basis
points in the federal funds rate in February. This action, in turn, prompted
concerns of continued actions by the Federal Reserve. Both the fixed income and
equity markets reacted negatively during March and April to this prospect. A
general slowing in the pace of economic growth coupled with surprisingly weak
inflation numbers reinvigorated the markets and broad rallies unfolded into the
mid-year mark.
EQUITY MARKET REVIEW AND OUTLOOK
The absence of inflationary pressures is certainly one of the main reasons for
the rather optimistic equity investment climate. The competitive global economy
may be moderating domestic pricing pressures, but the transformation of American
industry is also responsible. As technology is increasingly adopted at ever
expanding levels within corporations, costs are reduced and business abilities
are greatly enhanced. The effects of this technology revolution cannot be
underestimated.
Corporate earnings growth has also been a prime factor supporting the market's
advance. The first quarter strong economic growth propelled profits above
expectations and this has generally continued through the second quarter. The
application of technology has helped control costs, allowing margins throughout
industries to expand to near record levels.
Looking forward, we appear to be in the ironic position of wondering whether the
current economic environment can improve from this point. Not that it has to,
but human nature looks for pitfalls. Many economists foresee a slower economy
through the summer with a pickup in business activity later in the year.
Investors will keep a close eye out for possible inflationary pressures if the
economy strengthens.
Valuations in the equity market are high, reflecting this investment climate. At
these levels, market volatility has become substantial. Earnings
disappointments, for instance, are often met with violent price reactions. Given
this volatility in individual issues, many investors have opted for the
perceived security of the index fund and/or the very largest market
capitalization stocks. In our opinion, this has driven the valuations of some of
the larger, more mature companies to excessive levels. Nevertheless, a
remarkable amount of funds continue to flow into the equity market. In this
environment, we at Fortis prefer to concentrate our focus on companies with
leading and dominant positions in the rapidly growing sectors of the economy. We
are confident that this growth will be recognized and rewarded by the market
over time.
3
<PAGE>
FIXED INCOME MARKET REVIEW AND OUTLOOK
The bond market behaved in the first six months of the year very much as it did
in 1996. Accordingly, each new piece of significant economic data resulted in
market changes which reflected investors' speculation about the outlook for
future growth and its impact on inflation. The level of interest rates, as a
result, was quite volatile. Nonetheless, rates moved within established bands,
retracing levels seen last year, but roughly bounded by a collar of three
quarters of a percent (i.e., 6.25 - 7.00 percent). During this time, the yield
curve, described by the difference in yield between the 2-year and 30-year
Treasury securities, flattened by about five basis points (i.e., five hundredths
of a percent) as short rates rose more than long. This increase reflected the
market's response to the 25-basis-point increase the Federal Reserve enacted in
its prime market lending rate. This March 25 action, of course, followed
Chairman Alan Greenspan's warnings that signs of "irrational exuberance" must be
met by "preemptive" action by the monetary authorities.
As the second quarter progressed, signs of economic slowing relieved the strain.
Rates moved off the high end of the above described range and investors believed
that further Federal Reserve tightening was a more distant event. The dominant
investment theme for the period was the search for incremental yield. Investors
buying investment grade corporate bonds, high yield, mortgage-backs -- anything
with yield exceeding Treasury bonds -- caused yield spreads, already at
relatively narrow historic levels, to contract further and the highest yielding
securities to outperform.
Our investment strategy during this period has been to remain fully invested in
higher yield products. We adjusted the length of maturity, or duration, of our
portfolios relative to the point the market yield levels had reached. Because
longer duration is rewarded by greater price appreciation when rates fall, for
example, we increased duration ( i.e., "lengthened" the portfolios ) when
Treasury bond yields approached 7 percent and decreased duration (i.e.,
"shortened" the portfolios) when such rates neared 6.5 percent. Looking out a
year or more, we believe long Treasury bond rates above 6.75 percent will prove
to have been an attractive level to have purchased the securities.
Correspondingly, our bias is toward longer duration. We intend to lengthen
duration further should rates increase again, while maintaining an overweighted
position in higher yielding instruments.
THANK YOU
Thank you for your investment with Fortis. We appreciate your trust in our
management of your investment funds.
Sincerely,
<TABLE>
<S> <C> <C>
[SIGNATURE] [SIGNATURE] [SIGNATURE]
Dean C. Kopperud James S. Byrd Howard H. Hudson
President Vice President, Equities Vice President, Fixed Income
</TABLE>
Dated: July 14, 1997
4
<PAGE>
PORTFOLIO ALLOCATION
AS OF 6/30/97
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Banks 20.9%
Diversified Finance 19.7%
Consumer Financing 19.0%
Captive Auto Finance 10.0%
Utilities-Electric 9.2%
Captive Equipment Finance 8.0%
Brokerage and Investment 5.0%
Industrial 5.0%
Beverage 3.2%
</TABLE>
FORTIS SERIES FUND: MONEY MARKET SERIES
AS THE MOST CONSERVATIVE SUBACCOUNT, THIS PORTFOLIO IS DESIGNED FOR INVESTORS
SEEKING LIQUIDITY AND STABLE PRINCIPAL. ACCORDINGLY, THE MONEY MANAGERS CHOOSE
HIGH-QUALITY, SHORT-TERM MONEY MARKETS AND U.S. GOVERNMENT SECURITIES.
REVIEW
During the first two months of 1997, short-term interest rates experienced
little change. However, by mid-March, it became evident that first quarter
growth was stronger than expected, and rates began inching up in anticipation of
a Federal Reserve funds rate hike. The rise in rates culminated with an increase
of 0.25 percent to 5.5 percent on March 25. Since March, the economy has shown
signs that its growth rate has moderated, convincing most market participants
that the Fed will not raise rates again in the near future.
In the first half of 1997, the fund's annualized yield was 5.11 percent, up from
5.01 percent in 1996. When the year began, the fund's average maturity was kept
around 55 days. This allowed us to take advantage of the higher yields on longer
maturities during a period in which we expected rates to remain stable. We began
lowering the average maturity in late February as stronger economic information
led us to believe that short-term rates would soon be rising. By mid-March the
Fund's average maturity was 35 days and has remained between 35 and 45 days.
OUTLOOK
Looking forward we expect the economy to accelerate slightly from its second
quarter levels to a 2 - 3 percent growth rate over the remainder of 1997. There
has been little evidence in the current expansion that this level of growth will
lead to higher inflation. However, history has shown that sustained growth above
2.5 percent has caused inflationary pressures to rise. In light of the Federal
Reserve's bias toward constraint, we believe it is important to maintain a short
average maturity and continue to monitor economic data closely.
5
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY
AS OF 6/30/97
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
U.S. Treasury Securities 43.7%
FNMAs 21.5%
Other Direct Federal Obligations 15.7%
GNMAs 11.3%
Cash Equivalents/Receivables 5.2%
Other 2.6%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/97
<TABLE>
<CAPTION>
Percent of
Bonds Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. U.S. Treasury Note (6.375%) 2000 20.4%
2. TVA Global (6.375%) 2005 10.1%
3. U.S. Treasury Bond (6.875%) 2006 7.8%
4. GMNA (7.50%) TBA 6.5%
5. FHLB Note (7.31%) 2004 5.6%
6. FNMA Global Note (6.85%) 2000 4.8%
7. U.S. Treasury Note (6.50%) 2001 4.0%
8. U.S. Treasury Note (6.25%) 2007 3.6%
9. FNMA (7.00%) #307055 2025 3.2%
10. FNMA (7.00%) #250345 2025 3.1%
</TABLE>
FORTIS SERIES FUND: U.S. GOVERNMENT SECURITIES SERIES
THIS PORTFOLIO IS DESIGNED FOR CONSERVATIVE INVESTORS SEEKING A STRONG TOTAL
RETURN, AS WELL AS A RELATIVELY HIGH LEVEL OF CURRENT INCOME. IT FOCUSES ON
INVESTMENTS IN U.S. GOVERNMENT BONDS, TREASURIES AND MORTGAGE-BACKED SECURITIES.
REVIEW
When measured from year-end 1996 to mid-year 1997, the yield on 10-year U.S.
Treasuries started at 6.418 percent and ended the period at 6.491 percent. This
apparent interest rate stability, however, doesn't tell the whole story. The
yield on 10-year U.S. Treasuries, during this period, has ranged from a low of
6.25 percent to a high of 7 percent.
In addition, the shape of the yield curve has flattened, with the yield of short
maturity securities rising more than those of longer maturity securities.
(Two-year yields were up by 19 basis points, while the yield on 30-year
securities were up by 14 basis points). The yield curve began to flatten as
investors expected that the Federal Reserve would raise rates because of the
rapid economic growth experienced earlier this year. The Federal Reserve did
indeed raise the Federal Funds Rate target to 5.5 percent from 5.25 percent on
March 25. Since then, the rate of growth (as measured by the Gross Domestic
Product) has slowed from a 5.9 percent rate in first quarter to around a 2
percent rate in second quarter. In response to the Federal Reserve rate change,
the Treasury market initially sold off. The market has more recently rallied as
the economic indicators suggest that second quarter growth would be dramatically
weaker than first quarter.
We believed that interest rates would remain within a broad trading range, so we
implemented a duration* strategy designed to take advantage of the interest rate
environment. Specifically, we looked to shorten duration as interest rates fell
toward the low end of the trading range and lengthen duration as rates rose
towards the high end of the trading range. These duration adjustments were
modest, however, and never exceeded 5 percent of the overall benchmark duration.
As of June 30, 1997, the portfolio's duration is currently 4.5 years, equal to
the benchmark.
*AN IMPORTANT CONCEPT IN MANAGING FIXED INCOME SECURITIES, DURATION IS THE
MEASURE OF A BOND FUND'S SENSITIVITY TO INTEREST RATE CHANGES. TRADITIONALLY
MEASURED IN YEARS, HIGHER DURATIONS MEAN POTENTIALLY GREATER FLUCTUATIONS IN
BOND VALUES, JUST AS LOWER DURATIONS TYPICALLY MEAN LESS VOLATILITY.
We began the year with one-third of our portfolio in mortgage-backed securities.
We reduced it to the current level of 29 percent as this sector moved to its
lowest yields in more than two years compared to Treasuries. In addition, 22
percent of our holdings are currently in agency notes. We expect that the yield
that these securities offer will enhance total return. These strategies
contributed to improved fund performance over the first six months of 1997. For
the six months ended June 30, the Fund earned a 2.91 percent total rate of
return compared to a 2.63 percent total return for the Lehman Brothers
Government Index.
OUTLOOK
Going forward, we anticipate that economic growth will pick up in the third and
fourth quarters. Job growth and consumer income should translate into stronger
retail sales, resulting in an extension of the current expansion well into 1998.
We expect quarterly growth numbers will be between 2.5 and 3 percent in the
second half of this year. Inflation, absent from the picture for now, could pick
up modestly as wage pressures begin to put upward pressure on final prices.
Although these pressures will not be great, we believe it will be enough to
prompt one more .25 percent increase in short-term rates by the Federal Reserve.
Our long-term view on interest rates, however, is positive, and we would view a
rise in interest rates in the second half of the year as an opportunity to
extend the portfolio's duration.
VALUE OF $10,000 INVESTED MARCH 24, 1987
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
LEHMAN BROTHERS
INTERMEDIATE GOV'T*** U.S. GOVERNMENT SECURITIES SERIES
<S> <C> <C> <C>
3/24/87 $10,000 $10,000
87 $9,917 $9,814
88 $10,663 $10,459
89 $11,739 $11,494
90 $12,645 $12,348
91 $13,978 $13,464
92 $15,776 $15,159
93 $17,359 $16,901
94 $17,325 $16,038
95 $19,049 $17,952
96 $19,845 $18,735
97 $21,223 $20,159
U.S. Government Securities Series
Average Annual Total Return*
Since
1 Year 5 Year 10 Year March 24, 1987**
+7.60% +5.87% +7.46% +7.06%
</TABLE>
Annual period ended June 30
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of government bonds with an average maturity of three to
four years.
6
<PAGE>
PORTFOLIO COMPOSITION
BY INDUSTRY AS OF 6/30/97
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Corporate Bonds - Investment Grade 31.8%
Asset Backed Securities 26.4%
Corporate Bonds - Non-Investment Grade 15.1%
U.S. Government Securities 13.9%
U.S. Treasury Securities 9.7%
Cash Equivalent / Receivables 3.1%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/97
<TABLE>
<CAPTION>
Percent of
Bonds Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. U.S. Treasury Note (6.625%) 2002 4.6%
2. GNMA (9.00%) 2020 3.2%
3. Nationslink Funding Corp., (7.515%) 2005 2.9%
4. FNMA #307055 (7.00%) 2025 2.7%
5. Merrill Lynch Mtg. Investors, Inc. (6.815%) 2025 2.2%
6. DLJ Mtg Acceptance Corp., (8.50%) 2001 2.2%
7. GTE Corp., (7.51%) 2009 2.0%
8. Republic NY Capital I, (7.75%) 2026 1.9%
9. FNMA #250345 (7.00%) 2025 1.8%
10. Green Tree Financial Corp., (7.20%) 2019 1.8%
</TABLE>
FORTIS SERIES FUND: DIVERSIFIED INCOME SERIES
THIS PORTFOLIO IS DESIGNED ESPECIALLY FOR THOSE PEOPLE INTERESTED IN SEEKING
INCOME FROM BOTH GOVERNMENT SECURITIES AND CORPORATE BONDS. THE MAJORITY OF THE
PORTFOLIO WILL PURSUE HIGH-QUALITY CORPORATE BONDS AND U.S. GOVERNMENT
SECURITIES. A PORTION MAY BE INVESTED IN DIVIDEND-PAYING STOCKS AND LOWER-RATED
CORPORATE BONDS FOR ADDED OPPORTUNITY.
REVIEW
Over the past six months, interest rates have exhibited moderate volatility,
with yields on 30-year treasuries trading between 6.53 percent and 7.17 percent.
Early signs of robust economic growth prompted the Federal Reserve to raise the
Fed Funds rate by 0.25 percent during the first quarter. Investors were
concerned about the continuing strength of the economy and inflationary
pressures. This moved the 30-year yield above 7 percent for a full month
following the Federal Reserve action. Later in the second quarter, however, the
economic data started pointing to a slowing economy and tame inflation. As
investors developed some comfort with the slower economic growth, 30-year rates
moved lower to end the quarter at 6.79 percent. Strong demand for yield helped
corporate bonds and mortgage-backed securities book significantly higher returns
than treasuries of similar duration.*
*AN IMPORTANT CONCEPT IN MANAGING FIXED INCOME SECURITIES, DURATION IS THE
MEASURE OF A BOND FUND'S SENSITIVITY TO INTEREST RATE CHANGES. TRADITIONALLY
MEASURED IN YEARS, HIGHER DURATIONS MEAN POTENTIALLY GREATER FLUCTUATIONS IN
BOND VALUES, JUST AS LOWER DURATIONS TYPICALLY MEAN LESS VOLATILITY.
For the six months ending June 30, 1997, the Diversified Income Fund earned a
3.06 percent total rate of return. Our strategy of underweighting treasuries (10
- -12 percent) and overweighting mortgage-backed securities (40 percent) had a
positive impact on the Fund's total return.
We made periodic duration adjustments to the portfolio as interest rates reacted
to the latest economic releases. We lengthened duration as 30-year rates moved
toward or past 7.0 percent, and shortened duration as rates moved toward 6.75
percent or lower. Duration changes during the past six months were modest; the
portfolio duration stands currently at 5.57 years, neutral relative to our
benchmark, down from a high of 5.80 years in March.
OUTLOOK
We expect the economic growth in the second half of 1997 to be slightly better
than that of the second quarter, between 2 and 3 percent. That persisting
economic growth may lead to a modest increase in inflation, moving CPI (consumer
price index, a common measure of inflation) to a 2.5 - 3 percent range. The
Federal Reserve would most likely react to that situation by raising Fed Funds
by another 0.25 percent. Under these conditions, we believe that rates will move
toward the high end of the range, offering an opportunity to lengthen the
duration of the portfolio. Our outlook on corporate bonds and mortgage-backed
securities remains positive and we intend to maintain an overweight position in
both sectors.
VALUE OF $10,000 INVESTED MAY 2, 1988
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
LEHMAN BROTHERS
AGGREGATE BOND*** DIVERSIFIED INCOME SERIES
<S> <C> <C>
5/2/88 $10,000 $10,000
88 $10,172 $10,150
89 $11,415 $11,138
90 $12,312 $12,059
91 $13,629 $13,266
92 $15,543 $14,944
93 $17,374 $16,968
94 $17,147 $16,525
95 $19,316 $18,401
96 $20,164 $19,329
97 $21,809 $20,982
Diversified Income Series
Average Annual Total Return*
Since
1 Year 5 Year May 2, 1988**
+8.55% +7.02% +8.43%
</TABLE>
Annual period ended June 30
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of government, corporate and mortgage-backed securities
with an average maturity of approximately nine years.
7
<PAGE>
PORTFOLIO DIVERSIFICATION BY COUNTRY AS OF 6/30/97
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Cash Equivalents/Receivables 22.9%
United States 14.7%
Spain 12.1%
Germany 10.4%
Italy 8.3%
Netherlands 7.6%
Denmark 7.3%
Japan 7.1%
United Kingdom 4.0%
Austria 3.7%
Canada 1.9%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/97
<TABLE>
<CAPTION>
Percent of
Bonds Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Bundesobl.V.95/oos.116 STV (5.75%) 2000 5.1%
2. Buoni Poliennali Del Tesoro (9.50%) 2001 4.8%
3. Bonos Y Obligation Del Estado (7.40%) 1999 4.6%
4. ARKAIG Finance Co. (5.65%) 1999 4.5%
5. United Kingdom Treasury (8.75%) 2017 4.0%
6. Kingdom of Denmark (8.00%) 2003 3.9%
7. Republic of Austria (7.875%) 2002 3.7%
8. General Electric Capital Corp. (8.125%) 2007 3.5%
9. Buoni Poliennali Del Tesoro (10.50%) 2000 3.5%
10. Kingdom of Denmark (8.00%) 2001 3.4%
</TABLE>
FORTIS SERIES FUND: GLOBAL BOND SERIES
(SUBADVISED BY MERCURY ASSET MANAGEMENT)
BECAUSE IT OFFERS INVESTORS A COMBINATION OF CURRENT INCOME AND GROWTH
POTENTIAL, THIS PORTFOLIO MAKES AN EXCELLENT CHOICE FOR THOSE INVESTORS WHO SEEK
TO ROUND OUT THEIR INVESTMENT SELECTIONS WITH GLOBAL BONDS. THE MONEY MANAGERS
SEEK OUT HIGH QUALITY BONDS AND OTHER FIXED INCOME SECURITIES OFFERED BY
GOVERNMENTS AND CORPORATIONS WORLDWIDE, EMPHASIZING DEVELOPED COUNTRIES.
REVIEW
The Global Bond Series' -1.68 percent return for the period ended June 30, 1997
was a reflection of the overall market environment as a strong U.S. dollar
lowered the performance of the non-U.S. bond markets. While the portfolio
maintained a significant position in the dollar, the remaining exposure to the
international currencies still drove returns into negative territory.
Shifting to the bond side, the portfolio continued to emphasize the
higher-yielding European bond markets. Exposure to Italian and Spanish bonds was
increased and German bonds reduced. In addition, U.S. bond purchases were
increased and Japanese bonds reduced.
OUTLOOK
With few exceptions, the world's bond markets look fragile at current levels.
The strength of the U.S. and U.K. economies, while not producing undue
inflation, have created a bias toward higher interest rates. The Japanese
economy is also showing signs of recovery which can only put upside pressure on
interest rates there. The best opportunities in bonds will be in Europe where
the march toward European Monetary Union has led to some value among select
countries, primarily the higher-yielding markets. On the currency front, the
strength of the U.S. economy (and its potential for higher short-term interest
rates) will underpin the U.S. dollar, especially against the European
currencies.
We will continue to closely monitor this environment and will search for the
most favorable opportunities that support the portfolio's investment objectives.
VALUE OF $10,000 INVESTED JANUARY 3, 1995
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
SALOMON BROS WORLD GLOBAL
GOV'T BOND INDEX *** BOND SERIES
<S> <C> <C>
1/3/95 $10,000 $10,000
95 $11,688 $11,541
96 $11,728 $11,588
97 $12,183 $12,083
Global Bond Series
Average Annual Total Return*
Since
1Year January 3, 1995**
+4.27% +7.89%
</TABLE>
Annual period ended June 30
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of world government bonds with maturities of at least
one year.
8
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY
AS OF 6/30/97
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 37.8%
Telecommunications 13.9%
Chemicals 9.8%
Cable Television 8.3%
Leisure Time-Amusements 6.6%
Steel and Iron 6.2%
Industrial 5.1%
Housing 4.2%
Cash Equivalents/Receivables 4.1%
Broadcasting 4.0%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/97
<TABLE>
<CAPTION>
Percent of
Bonds Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Australis Media Ltd., (16.20%) 2003 2.9%
2. MDC Holdings, Inc. (11.125%) 2003 3.1%
3. Mohegan Tribal Gaming (13.50%) 2002 2.6%
4. Collins & Aikman Products, (11.50%) 2006 2.2%
5. Petersen Publishing Co. (11.125%) 2006 2.2%
6. LaRoche Industries, Inc. (13.00%) 2004 2.2%
7. Tenet Healthcare Corp. (10.125%) 2005 2.1%
8. Benton Oil & Gas, (11.625%) 2003 2.1%
9. Envirodyne Industries, Inc. (12.00%) 2000 2.1%
10. NL Industries, Inc. (11.75%) 2003 2.1%
</TABLE>
FORTIS SERIES FUND: HIGH YIELD SERIES
LONG-TERM INVESTORS, WILLING TO ACCEPT GREATER PRICE FLUCTUATIONS, MAY CHOOSE TO
DIVERSIFY THEIR STOCK OR BOND INVESTMENTS WITH THIS PORTFOLIO OF HIGHER YIELD
BONDS. ITS MONEY MANAGERS INVEST IN A WIDELY DIVERSIFIED PORTFOLIO OF
LOWER-RATED CORPORATE BONDS.
REVIEW
For the six months ended June 30, 1997, the high yield bond market outperformed
all U.S. fixed income markets. The strength of the U.S. economy, low default
rates, and a soaring stock market all contributed to a rising tide for high
yield securities.
The Series High Yield Portfolio delivered a below-average 5.15 percent return
for the six-month period. The Lehman Brothers High Yield Bond Index returned
5.22 percent for the same time frame. The portfolio's underperformance was due
to its holdings in bonds issued by telecommunications companies and wireless
cable companies. Most of the shortfall in return took place in March, when the
Federal Reserve raised short-term rates 0.25 percent. Bond prices in the
telecommunications sector, many of which are sensitive to changes in interest
rates because they have 0 percent coupons, fell further than the average high
yield bond.
OUTLOOK
The outlook for high yield bonds for the remainder of the year is positive.
Although the supply of new high yield issues may reach a record in 1997 and the
additional yield earned over U.S. treasuries may reach a new low, investors are
demonstrating an enormous appetite for high coupons in a low-interest rate
environment. Given the current strength of the U.S. economy, recession and
sharply rising default rates appear remote.
VALUE OF $10,000 INVESTED MAY 2, 1994
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
LEHMAN BROTHERS
HIGH YIELD INDEX*** HIGH YIELD SERIES
<S> <C> <C>
5/2/94 $10,000 $10,000
94 $10,036 $9,998
95 $11,423 $10,817
96 $12,401 $11,694
97 $14,104 $13,003
High Yield Series
Average Annual Total Return*
Since
1 Year May 2, 1994**
+11.19% +8.65%
</TABLE>
Annual period ended June 30
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of lower quality, high yield corporate debt securities.
9
<PAGE>
PORTFOLIO ALLOCATION AS OF 6/30/97
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Equity Securities 54.9%
U.S. Treasuries Securities 13.4%
Asset Backed Securities 9.0%
Corporate Bonds - Investment Grade 8.7%
U.S. Government Securities 6.3%
Corporate Bonds - Non-Investment Grade 5.4%
Cash Equivalents/Receivables 2.3%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/97
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. American International Group, Inc. 2.2%
2. Microsoft Corp. 1.9%
3. Fannie Mae 1.7%
4. General Electric Co. 1.5%
5. Costco Companies, Inc. 1.4%
6. WorldCom, Inc. 1.4%
<CAPTION>
Bonds
- -------------------------------------------------------------------
<C> <S> <C>
1. U.S. Treasury Note (7.00%) 2006 2.3%
2. U.S. Treasury Note (6.375%) 2000 1.9%
3. U.S. Treasury Note (6.25%) 1999 1.8%
4. U.S. Treasury Note (6.00%) 1998 1.5%
</TABLE>
PORTFOLIO CHANGES FOR THE PERIOD ENDED 6/30/97
STOCK ADDITIONS: STOCK ELIMINATIONS:
Archer-Daniels-Midland Co. 360 Communications Co.
Camco International, Inc. AutoZone, Inc.
Domain Energy Corp. Biovail Corp. International
Fluor Corp. Ceridian Corp.
Hartford Life, Inc. Computer Associates
Mylan Laboratories, Inc. International, Inc.
Santa Fe International Corp. Franklin Resources, Inc.
Telebras ADR Office Depot, Inc.
Time Warner, Inc. PacifiCare Health Systems,
Tranz Rail Holdings Ltd. ADR Inc. Class B
U.S. Bancorp Scholastic Corp.
U.S.A. Waste Services, Inc. Staples, Inc.
Warner-Lambert Co. United Healthcare Corp.
Wackenhut Corp., Class B
FORTIS SERIES FUND: ASSET ALLOCATION SERIES
DESIGNED FOR INVESTORS WHO SEEK TOTAL RETURN FROM A BLEND OF GROWTH POTENTIAL
AND CURRENT INCOME. THE PORTFOLIO MANAGERS SELECT A MEDLEY OF U.S. STOCKS, BONDS
AND MONEY MARKETS IN PERCENTAGES THAT MANY VARY WITH CURRENT MARKET CONDITIONS.
REVIEW
In the Asset Allocation Series, we alter the allocation mix as the outlook for
the equity and fixed income markets change. During the first six months of 1997,
the asset allocation mix was changed once, with equities dropping from 60
percent to 55 percent. This change reflected concerns over equity valuations and
the improving outlook for inflation which would benefit bond valuations.
Currently, fixed income holdings contribute the remaining 45 percent of the
portfolio. Over the period under review, the portfolio registered a return of
10.56 percent.
STOCKS
The portfolio's equity portion is invested primarily in large capitalization
companies with superior earnings prospects. Positions in the financial and
health care sectors added to performance over the period while selected energy
and utility holdings detracted from overall performance. Industry weightings
remained relatively unchanged over the period and we continued to emphasize the
financial, health care and energy sectors.
BONDS
In the bond portion of the fund, our strategy to overweight corporate bonds and
mortgage-backed securities paid off. The first half of the year was a period of
strong economic growth and relatively stable interest rates, conditions which
are typically favorable for non-treasury debt. As expected in this environment,
corporate bonds and mortgage-backed securities had a significantly higher return
than treasuries of similar duration*. During the second quarter, as
mortgage-backed securities moved to less attractive levels compared to the
treasuries, we reduced our exposure to the sector to 33 percent from a high of
45 percent in the beginning of the year.
*AN IMPORTANT CONCEPT IN MANAGING FIXED INCOME SECURITIES, DURATION IS THE
MEASURE OF A BOND FUND'S SENSITIVITY TO INTEREST RATE CHANGES. TRADITIONALLY
MEASURED IN YEARS, HIGHER DURATIONS MEAN POTENTIALLY GREATER FLUCTUATIONS IN
BOND VALUES, JUST AS LOWER DURATIONS TYPICALLY MEAN LESS VOLATILITY.
We made periodic duration adjustments to the portfolio as interest rates shifted
with inflation fears. Despite a strong 5.9 percent return in the gross domestic
product in the first quarter and the decision of the Federal Reserve to raise
short term rates by 0.25 percent on March 25, we believed that interest rates
would not move higher. We predicted they would move within established trading
ranges responding to the latest economic releases. We took advantage of interest
rate shifts by lengthening duration as 30-year rates moved toward or past 7.0
percent, and shortening duration as rates moved toward 6.75 percent or lower.
Duration changes during the past six months were modest; the portfolio duration
stands currently at 4.65 years, down from a high of 5.0 years in March.
OUTLOOK
Looking forward, we anticipate continued moderate economic growth, coupled with
a general lack of inflationary pressure. This outlook should generally be
positive for both the equity and fixed income sectors. In equities, the
challenge is to continue finding rewarding investments within a highly valued
market environment. In the fixed income area, we believe that interest rates
will move up toward the high end of the range, offering an opportunity to
lengthen the duration of the portfolio. Our outlook on corporate bonds and
mortgage-backed securities remains positive.
VALUE OF $10,000 INVESTED MAY 1, 1987
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
LEHMAN BROTHERS
AGGREGATE BOND INDEX + S&P 500 ++ ASSET ALLOCATION SERIES
<S> <C> <C> <C>
5/1/87 $10,000 $10,000 $10,000
87 $10,098 $10,607 $10,392
88 $10,911 $9,875 $9,809
89 $12,244 $11,902 $11,095
90 $13,206 $13,854 $12,838
91 $14,619 $14,877 $13,674
92 $16,671 $16,880 $15,690
93 $18,636 $19,174 $17,608
94 $18,392 $19,431 $17,564
95 $20,719 $24,490 $21,130
96 $21,628 $30,895 $23,521
97 $23,393 $41,399 $27,973
Asset Allocation Series
Average Annual Total Return*
Since
1 Year 5 Year 10 Year May 1, 1987**
+18.93% +12.26% +10.41% +10.65%
</TABLE>
Annual period ended June 30
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
+ An unmanaged index of government, corporate, and mortgage-backed securities
with an average maturity of approximately nine years.
++ An unmanaged index of 500 common stocks.
10
<PAGE>
PORTFOLIO ALLOCATION AS OF 6/30/97
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C> <C> <C> <C>
Equity Securities 57.9%
Long-Term Foreign Bonds - Investment Grade 22.3%
U.S. Treasury Securities 14.6%
Cash Equivalents/Receivables 5.2%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/97
<TABLE>
<CAPTION>
Percent of
Bonds Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. U.S. Treasury Note (5.75%) 2003 6.1%
2. German Government (6.50%) 2003 2.4%
3. U.S. Treasury Note (6.25%) 2000 2.3%
4. U.S. Treasury Note (5.625%) 2001 2.2%
5. U.S. Treasury Note (7.25%) 2004 2.0%
6. U.S. Treasury Note (7.875%) 2004 1.9%
7. Swedish Government (13.00%) 2002 1.8%
8. German Government (8.50%) 2003 1.8%
<CAPTION>
Stocks
- -------------------------------------------------------------------
<C> <S> <C>
1. Data General Corp. 1.9%
2. Houghton Mifflin Co. 1.9%
</TABLE>
PORTFOLIO CHANGES FOR THE PERIOD ENDED 6/30/97
ADDITIONS: ELIMINATIONS:
Albertson's, Inc. Avonmore Foods plc
Ascent Entertainment Group Bank of New York Co., Inc.
Bass plc Brambles Industries Ltd.
Borg-Warner Automotive, Inc. Calor Group plc
Burmah Castrol plc Christian Salvesen plc
Clondalkin Group Units plc Credit Lyonnaise
Greenpoint Financial Corp. Deutsche Telekom AG ADR
IBP, Inc. General Motors Corp.
Imperial Tobacco Group plc Hudson's Bay Co.
Irish Life plc Kwik Save Group plc
NCR Corp. Lucent Technologies, Inc.
NKK Corp. Novartis AG
Peninsular & Orient Steam Novell, Inc.
Navigation Repsol S.A.
Pennzoil Co. Silicon Graphics, Inc.
Pharmacia and UpJohn, Inc. Southern Electric plc
Polaroid Corp. Varta AG
Potash Corporation of
Saskatchewan
Racal Electronics plc
Salvesen Christian plc
Scottish Hydro-Electric plc
Southern Electric
Terra Nova (Burmuda) Holdings
Toys 'R' Us, Inc.
Viag AG
Yamanouchi Pharmaceutical
FORTIS SERIES FUND: GLOBAL ASSET ALLOCATION SERIES
(SUBADVISED BY MORGAN STANLEY ASSET MANAGEMENT)
DESIGNED ESPECIALLY FOR INVESTORS WHO WANT A FLEXIBLE PORTFOLIO THAT SEEKS TOTAL
RETURN FROM A BLEND OF GROWTH POTENTIAL AND CURRENT INCOME FROM AROUND THE
WORLD, INCLUDING THE UNITED STATES. MONEY MANAGERS INVEST IN GLOBAL STOCKS,
BONDS AND MONEY MARKETS IN PERCENTAGES THAT MAY VARY WITH MARKET CONDITIONS.
REVIEW
During the second quarter, the Global Asset Allocation Portfolio appreciated
8.92 percent. Compared to market indices, both the equity and the fixed
income/cash portions of the portfolio underperformed by a small amount. The
equity holdings grew by 14 percent during second quarter versus a 15.08 percent
return for the MSCI World Index. The bond holdings rose 2.63 percent compared to
a Salomon Brothers World Government Bond Index return of 3.03 percent.
Global fixed markets rallied in every country except Japan during the second
quarter. The portfolio benefited from its overweighting of Swedish and United
Kingdom bonds, and from its below-market exposure to Japanese interest rates.
Our main strategy move during the quarter was to increase our exposure to
Japanese bonds which were viewed as offering better value following the sharp
rise in yield levels. At the end of June, the duration* of the portfolio was 4.4
years.
*AN IMPORTANT CONCEPT IN MANAGING FIXED INCOME SECURITIES, DURATION IS THE
MEASURE OF A BOND FUND'S SENSITIVITY TO INTEREST RATE CHANGES. TRADITIONALLY
MEASURED IN YEARS, HIGHER DURATIONS MEAN POTENTIALLY GREATER FLUCTUATIONS IN
BOND VALUES, JUST AS LOWER DURATIONS TYPICALLY MEAN LESS VOLATILITY.
A stunning rally in U.S. stocks over the quarter saw the MSCI USA Index up 17.7
percent. As well as the obvious support from a more optimistic interest rate
outlook, a further decline in the budget deficit, a reduction in the capital
gains tax, strong mutual fund inflows and continuing merger activity all helped
to power the Dow Jones Industrial Average to record levels. However, the
two-tier nature of the economy remained evident, with large multinational
companies thriving while smaller, non-manufacturing companies continued to
struggle.
OUTLOOK
Looking forward, we expect that many of the developments driving global fixed
income markets will continue. Increasingly, however, we do not believe that the
potential rewards are worth taking significant risks. Although real interest
rates are still at attractive levels, U.S. and Continental European markets
expect little or no government involvement in the adjustment of interest rates
over the next two years. This is a situation we find worrisome given the
tightness of the U.S. labor market and the growing signs of economic recovery in
Europe.
VALUE OF $10,000 INVESTED JANUARY 3, 1995
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
SALOMON BROS WORLD GLOBAL ASSET
GOV'T BOND INDEX + MSCI WORLD INDEX ++ ALLOCATION SERIES
<S> <C> <C> <C>
1/03/95 $10,000 $10,000 $10,000
95 $11,688 $10,942 $11,189
96 $11,728 $13,021 $12,516
97 $12,183 $15,965 $14,368
Global Asset Allocation Series
Average Annual Total Return*
Since
1 year January 3,1995**
+14.80% +15.67%
</TABLE>
Annual period ended June 30
Past performance is not indicative of future
performance. Investment return and principal value
will fluctuate so that shares, when redeemed, may
be worth more or less than their original cost.
This represents the performance of the Series
itself, without the expenses associated with the
variable annuities or variable universal life
insurance policies.
* SEC defined total returns, including
reinvestment of all dividend and capital
gains distributions.
** Date shares were first offered to the public.
+ An unmanaged index of world government bonds
with maturities of at least one year.
++ An unmanaged index of the world's major
equity markets in U.S. dollars, weighted by
stock market value.
11
<PAGE>
COMPOSITION BY INDUSTRY
AS OF 6/30/97
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 47.4%
Cash Equivalents/Receivables 16.0%
Food 6.9%
Banks 6.6%
Drugs 4.8%
Office Equipment and Supplies 4.0%
Utilities-Telephone 3.9%
Retail-Specialty 3.5%
Natural Gas Transmissions 3.5%
Oil-Refining 3.4%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/97
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Columbia/HCA Healthcare Corp. 2.1%
2. Atlantic Richfield Co. 2.1%
3. General Electric Co. 2.0%
4. Johnson & Johnson 2.0%
5. Citicorp 2.0%
6. Pfizer, Inc. 2.0%
7. ConAgra, Inc. 2.0%
8. Anadarko Petroleum Corp. 1.9%
9. Sara Lee Corp. 1.9%
10. AutoZone, Inc. 1.9%
</TABLE>
PORTFOLIO CHANGES FOR THE PERIOD ENDED 6/30/97
ADDITIONS: ELIMINATIONS:
Abbott Laboratories ADT Ltd.
Automatic Data Processing, BankAmerica Corp.
Inc. Boeing Co.
AutoZone, Inc. Developers Diversified Realty
Baxter International, Inc. Corp.
Cali Realty Corp. Federal Express Corp.
Chase Manhattan Corp. Flightsafety International,
Dun & Bradstreet Corp. Inc.
Federal National Mortgage Heinz (H.J.) Co.
Association Home Depot, Inc.
First Data Corp. Mallinckrodt Group, Inc.
Fruit of the Loom, Inc., Class May Department Stores Co.
A Merrill Lynch & Co., Inc.
GTE Corp. Owens Corning
Intel Corp. Pall Corp.
Kimberly-Clark Corp. Union Texas Petroleum
Liberty Property Trust Holdings, Inc.
Lowe's Companies, Inc.
McGraw Hill Companies, Inc.
Mobil Corp.
Pfizer, Inc.
Public Storage, Inc.
Questar Corp.
RPM, Inc.
Royal Dutch Petroleum Co. NY
Shares
S & P 500 Depositary Receipt
Sabre Group Holdings, Inc.
Santa Fe Energy Resources,
Inc.
Sherwin-Williams Co.
Sterling Software, Inc.
FORTIS SERIES FUND: VALUE SERIES
DESIGNED FOR INVESTORS WHO LIKE TO DISCOVER QUALITY-GROWTH INVESTMENT
OPPORTUNITIES AT "BARGAIN" PRICES. THE PORTFOLIO MANAGERS CHOOSE STOCKS WITH
CURRENT PRICES THAT DO NOT NECESSARILY REFLECT THE STOCKS' POTENTIAL VALUE.
REVIEW
The Series Value total return was 13.50 percent for the six months ended June
30, 1997. This performance was about average for mutual funds in general. The
portfolio's return was influenced by two significant factors: (a) The portfolio
had moderately above average exposure to smaller capitalization stocks, which
performed poorly during the period. Smaller capitalization stocks performed
poorly because investors, concerned about both the advanced stage of the
economic recovery and the high valuations of the stock market, have tended to
avoid the riskier sectors of the market; and (b) The portfolio had below average
exposure to large capitalization stocks, which performed well during the period.
Large capitalization stocks have performed well because investors feel that they
appear to offer "safety" in a risky market.
OUTLOOK
We are being cautious on the stock market. Given the advanced stage of this
economic expansion, the fund will focus on companies that are relatively
protected from cyclical earnings deceleration. We will also focus on special
situations that offer the opportunity to invest in undervalued companies that
have attractive prospects for earnings acceleration.
VALUE OF $10,000 INVESTED MAY 1, 1996
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
S&P 500*** VALUE SERIES
<S> <C> <C>
5/1/96 $10,000 $10,000
96 $10,300 $10,153
97 $13,802 $12,654
Value Series
Average Annual Total Return*
Since
1 yr May 1, 1996**
+24.64% +22.40%
</TABLE>
Annual period ended June 30
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of 500 common stocks.
12
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY
AS OF 6/30/97
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 34.8%
Drugs 10.1%
Cash Equivalents/Receivables 9.0%
Finance Services 7.8%
Utilities-Telephone 7.4%
Natural Gas Transmissions 5.9%
Banks 5.7%
Real Estate-Investment Trust 5.5%
Oil-Crude Petroleum and Gas 5.4%
Utilities-Electric 4.7%
Food 3.7%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/97
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Glaxo Wellcome ADR 2.2%
2. SBC Communications, Inc. 2.2%
3. Sunamerica, Inc. Convertible Preferred 2.1%
4. General Electric Co. 2.0%
5. Duke Energy Corp. 2.0%
6. Household International, Inc. 1.9%
7. Tenneco, Inc. 1.9%
8. Lilly (Eli) & Co., Inc. 1.9%
9. Philip Morris Companies, Inc. 1.8%
10. AES Corp. Convertible, Ser A "Tecons" 1.8%
</TABLE>
PORTFOLIO CHANGES FOR THE PERIOD ENDED 6/30/97
ADDITIONS: ELIMINATIONS:
AES Corp. Conv., Ser A AT & T Corp.
Cornerstone Properties, Inc. American Brands, Inc.
Crescent Real Estate Equities Green Tree Financial Corp.
Trust Lucent Technologies, Inc.
Duke Energy Corp. PanEnergy Corp.
Excel Realty Trust, Inc. Safeco Corp.
Fortune Brands, Inc.
Gallaher Group plc ADR
Glaxo Wellcome plc ADR
Great Western Financial Corp.
Knightsbridge Tankers Ltd.
LaSalle Re Holdings Ltd.
Limited (The), Inc.
Mobil Corp.
Portland General Corp.
Quaker Oats Co.
SBC Communications, Inc.
Shelby Williams Industries,
Inc.
Spieker Properties, Inc.
St. Paul Companies, Inc.
Texaco, Inc.
U.S. Bancorp
FORTIS SERIES FUND: GROWTH & INCOME SERIES
THIS PORTFOLIO OFFERS A SOLUTION TO INVESTORS WHO WANT TO COMBINE CONSERVATIVE
GROWTH OPPORTUNITIES WITH INCOME POTENTIAL. IT FOCUSES ON COMPANIES WITH
ATTRACTIVE CURRENT DIVIDEND YIELDS RELATIVE TO THE STANDARD & POOR'S 500 STOCK
INDEX. THE PORTFOLIO IS WELL DIVERSIFIED WITH EXPOSURE TO MANY SECTORS OF THE
ECONOMY.
REVIEW
During the first half of 1997, the Growth and Income Portfolio posted an
investment return of 14.77 percent, reflecting the strength in the overall
equity market. The portfolio's performance was enhanced by selected holdings in
the financial and pharmaceutical sectors while energy and utilities detracted
from the overall performance. Industry weightings remained rather unchanged over
the period as we continue to emphasize the financial, health care and energy
sectors. The technology sector remains underweighted due to the general lack of
current income available in this sector.
The Growth and Income Portfolio focuses on identifying companies that provide a
combination of above average earnings growth and attractive current dividend
yields. We look for consistency of earnings growth and dividend increases.
OUTLOOK
We believe that moderate economic growth and modest inflation will continue,
which should extend the positive investment climate. This climate has allowed
equity valuations to expand to near record levels. While we don't anticipate a
market correction, further investment gains seem likely over the longer term.
Our challenge in the period ahead is to identify growth situations offering
current yields that meet our criteria.
VALUE OF $10,000 INVESTED MAY 2, 1994
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
S&P 500*** GROWTH & INCOME SERIES
<S> <C> <C>
5/2/94 $10,000 $10,000
94 $9,912 $9,942
95 $12,492 $11,448
96 $15,760 $14,430
97 $21,118 $18,403
Growth & Income Series
Average Annual Total Return*
Since
1 Year May 2, 1994**
+27.53% +21.26%
</TABLE>
Annual period ended June 30
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of 500 common stocks.
13
<PAGE>
COMPOSITION BY INDUSTRY
AS OF 6/30/97
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Capital Spending 23.4%
Finance 15.1%
Consumer Staples 13.3%
Consumer Discretionary 11.0%
Health Care 9.9%
Energy & Related 9.0%
Utilities 8.4%
Other 5.1%
Basic Industry 4.8%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/97
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. General Electic Co. 3.1%
2. Coca Cola Co. 2.4%
3. EXXON Corp. 2.2%
4. Microsoft Corp. 2.2%
5. Merck & Co., Inc. 1.8%
6. Intel Corp. 1.6%
7. Royal Dutch Petroleum 1.6%
8. Philip Morris Co., Inc. 1.6%
9. Procter & Gamble Co. 1.4%
10. International Business Machines 1.3%
</TABLE>
PORTFOLIO CHANGES FOR THE PERIOD ENDED 6/30/97
ADDITIONS: ELIMINATIONS:
Adobe Systems, Inc. Alco Standard Corp.
Aeroquip-Vickers, Inc. Alexander & Alexander
Autozone, Inc. American Brands, Inc.
Cardinal Health, Inc. Boatmens Bancshares
Conseco, Inc. Conrail, Inc.
Costco Companies, Inc. Dean Witter Discovery
Countrywide Credit Industries ITT Hartford Group
Equifax Inc Luby's Cafeterias, Inc.
Fortune Brands, Inc. Morgan Stanley Group
Frontier Corp. Morton International, Inc.
Hartford Financial Services Pacific Gas & Electric
Group Pacific Telesis Group
Healthsouth Corp. PanEnergy Corp.
IKON Office Solutions, Inc. Costco Co., Inc.
Morgan Stanley, Dean Witter, Providian Corp.
Discover & Co. Ryans Family Steak
Morton International, Inc. Santa Fe Pacific Gold Corp.
(and rights) Shoneys, Inc.
P G & E Corporation Trinova Corp.
Parametric Technology Corp. US Life Corp.
Providian Financial WMX Technologies, Inc.
Corporation
Charles Schwab Corp.
Thermo Electron Corp.
Waste Management, Inc.
FORTIS SERIES FUND: S&P 500 INDEX SERIES
(SUBADVISED BY DREYFUS)
THIS PORTFOLIO IS DESIGNED ESPECIALLY FOR INVESTORS WHO WANT TO EMULATE THE
TOTAL RETURN OF THE STANDARD & POOR'S 500 STOCK INDEX.
REVIEW
For the six-month period ended June 30, 1997, the portfolio realized a total
return of 20.01 percent, while the Standard & Poor's 500 Stock Index had a total
return of 20.61 percent.
The portfolio is designed to replicate the large capitalization United States
equity market as it is represented by the S&P 500 Index. Large capitalization
equities had a very strong six months, outperforming both small and
mid-capitalization stocks.
In the first half of 1997, some of the best performing groups in S&P 500 were
trucking, savings & loan, office equipment and supply companies. Currently, the
Fortis S&P Index Portfolio holds all 500 stocks in the S&P 500 in direct
proportion to their weight in the index.
OUTLOOK
As a portfolio that mirrors the holdings of an existing stock index, we will
continue to make the appropriate changes in accordance with the portfolio's
investment objective.
VALUE OF $10,000 INVESTED MAY 1, 1996
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
S&P 500*** S & P 500 Series
<S> <C> <C>
5/1/96 $10,000 $10,000
96 $10,300 $10,279
97 $13,802 $13,716
S&P 500 Series
Average Annual Total Return*
Since
1 year May 1, 1996**
+31.68% +28.12%
</TABLE>
Annual period ended June 30
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of 500 common stocks
14
<PAGE>
COMPOSITION BY INDUSTRY AS OF 6/30/97
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 47.7%
Cash Equivalent/Receivables 9.7%
Finance Services 7.1%
Drugs 6.5%
Banks 6.0%
Insurance 5.4%
Food 4.8%
Computer-Software 4.7%
Health Care Services 2.8%
Miscellaneous 2.7%
Chemicals 2.6%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/97
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. AlliedSignal, Inc. 1.4%
2. Pfizer, Inc. 1.3%
3. Travelers Group, Inc. 1.3%
4. First Data Corp. 1.3%
5. Ace Ltd. 1.2%
6. Merck & Co., Inc. 1.2%
7. Philip Morris Companies, Inc. 1.2%
8. Mellon Bank Corp. 1.2%
9. Johnson & Johnson 1.1%
10. Corning, Inc. 1.1%
</TABLE>
PORTFOLIO CHANGES FOR THE PERIOD ENDED 6/30/97
ADDITIONS: ELIMINATIONS:
Altera Corp. Aames Financial Corp.
Atlantic Richfield Co. Adobe Systems, Inc.
Boeing Co. Advanta Corp., Class B
CVS Corp. Alco Standard Corp.
Compaq Computer Corp. Apria Healthcare Group, Inc.
Dell Computer Corp. Berkley (W.R.) Corp.
Donnelley (R.R.) & Sons Co. Boston Chicken, Inc.
Dow Chemical Co. Catalina Marketing Corp.
Exel Limited Ceridian Corp.
Gap, Inc. Eckerd Corp.
Gillette Co. Ericsson (L.M.) Telephone Co.
Healthsouth Corp. Class B ADR
Hercules, Inc. General Mills, Inc.
Ikon Office Solutions, Inc. Informix Corp.
Lucent Technologies, Inc. KeyCorp
Mattel, Inc. Medic Computer Systems, Inc.
McKesson Corp. Millipore Corp.
Monsanto Co. Northern Trust Corp.
Motorola, Inc. Nucor Corp.
Neiman-Marcus Group Inc. Outback Steakhouse, Inc.
Nike, Inc. Class B PMI Group, Inc.
Nokia Corp. Class A ADR Petrolite Corp.
Omnicom Group, Inc. Revco D.S., Inc.
Parametric Technology Corp. Reynolds & Reynolds Co., Class
Patriot American Hospitality, A
Inc. Schlumberger Ltd.
SPX Corp. Schluman (A.), Inc.
St. Jude Medical, Inc. Silicon Graphics, Inc.
St. Paul Companies, Inc. Staples, Inc.
Service Corp. International Tupperware Corp.
Sigma-Aldrich Corp. Williamette Industries, Inc.
Sprint Corp.
Stanley Works
Starwood Lodging Trust
Tellabs, Inc.
Texaco, Inc.
Tribune Co.
Unilever N.V. ADR
U.S. West Media Group
Wal-Mart Stores, Inc.
FORTIS SERIES FUND: BLUE CHIP STOCK SERIES
(SUBADVISED BY T. ROWE PRICE)
THE MONEY MANAGERS FOR THIS PORTFOLIO TARGET "BLUE CHIP" COMPANIES WITH LEADING
MARKET POSITIONS, SEASONED MANAGEMENTS AND STRONG FINANCIAL FUNDAMENTALS. IT IS
DESIGNED FOR PEOPLE WHO WANT TO INVEST IN WELL-ESTABLISHED COMPANIES THAT
GENERATE CONSISTENT, DURABLE EARNINGS GROWTH WITH THE POTENTIAL FOR ABOVE
AVERAGE STOCK PERFORMANCE.
REVIEW
The U.S. stock market posted robust gains in the first half of 1997,
accentuating the consistent strength the market has demonstrated throughout the
past year. In this favorable environment for equities, your fund continues to
perform reasonably well. For the six months ended June 30, the Blue Chip Stock
Portfolio saw a return of 14.80 percent.
While the environment appears favorable, changes in inflation, interest rates
and other key determinants of stock performance are notoriously difficult to
predict. Changes and significant surprises do occur. There is also the risk that
stock valuations reflect much of the favorable news. However, we can strive to
manage these risks by investing in well-managed companies whose strong financial
results are not particularly sensitive to changes in the economic environment
and attempting to buy at reasonable valuations.
Consumer products stocks continued to play a key role in the fund's performance.
Pharmaceutical stocks have been the standouts with Pfizer being one of the top
contributors to performance in 1997. Financial stocks performed well as interest
rates moderated and investors continue to focus on companies with consistent
earnings growth and strong capital generation (funding significant share
repurchase). Manufacturing stocks also continued to be steady but potent
performers. In fact, Corning, GE and AlliedSignal were among the best performers
for the first six months of 1997. Although your fund has less exposure to the
technology sector than the average blue chip stock portfolio, our technology
holdings performed very well. We are were also able to find some sound
investment ideas in the struggling retail sector.
OUTLOOK
Our investment strategy continues to focus on maintaining positions in core
holdings as long as the fundamentals remain strong and valuations are
reasonable. Consequently, much of the substantial cash flow the fund has
received continues to be invested opportunistically in existing holdings. For
example, significant purchases over the past six months included additions to
Philip Morris, Allied Signal, First Data, Sara Lee and Mellon Bank.
Stock valuations remain expensive by all conventional valuation measures,
particularly as evidenced by the historically low dividend yield on the S&P 500.
We are also cautious because the market has generated strong results for several
consecutive years. As always, we strive to seek out blue chip companies with
leading market positions, as we continue to believe they will provide superior
investment results.
VALUE OF $10,000 INVESTED MAY 1, 1996
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
S&P 500*** BLUE CHIP STOCK SERIES
<S> <C> <C>
5/1/96 $10,000 $10,000
96 $10,300 $10,134
97 $13,802 $13,345
Blue Chip Series Series
Average Annual Total Return*
Since
1year May 1, 1996**
+31.68% +28.12%
</TABLE>
Annual period ended June 30
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of 500 common stocks
15
<PAGE>
PORTFOLIO DIVERSIFICATION BY COUNTRY AS OF 6/30/97
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
United States 39.4%
Other 23.7%
Cash Equivalents/Receivables 7.8%
Germany 5.9%
Japan 5.5%
United Kingdom 4.0%
Netherlands 3.7%
Sweden 3.5%
Finland 3.5%
France 3.0%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/97
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. SAP AG Systeme Non-Voting (Germany) 2.9%
2. 3Com Corp.(US) 2.8%
3. Gartner Group, Inc. Class A (US) 2.6%
4. Nokia (AB) K Shares (Finland) 2.5%
5. SGL Carbon AG (Germany) 2.2%
6. Tellabs, Inc. (US) 1.9%
7. Wisconsin Centeral Transportation Corp. (US) 1.8%
8. Barco N.V. (Belgium) 1.8%
9. Telefonia de Espana (Spain) 1.7%
10. OMV Aktiengesellschaft (Austria) 1.7%
</TABLE>
PORTFOLIO CHANGES FOR THE PERIOD ENDED 6/30/97
ADDITIONS: ELIMINATIONS:
AccuStaff, Inc. Amway Japan, Ltd.
Amer Group Ltd. Asia Satellite
Avis Europe plc Telecommunications Holdings
Camco International, Inc. Ltd.
China Eastern Airlines ADR Astra AB 'B'
Cipe Group France Bangkok Bank Co. Ltd.
Compagnie Generale de Castorama Dubois Investisse
Geophysique ADR Catalina Marketing Corp.
Covance, Inc. Ceridian Corp.
DSP Communications, Inc. CPT Telefonica Del Peru S.A.
Electricidade De Portugal Class B
ENSCO International, Inc. Deutsche Telekom AG ADR
Falcon Drilling Co. Dixons Group plc
Glaxo Wellcome plc ADR Empire East Land Holdings,
Hong Kong Land Holdings Ltd. Inc.
ING Groep NV Harvey Nichols
MOL Magyar Olaj-es Gazipari Korea Mobile
Rt. GDR Telecommunications- ADR
Motorola, Inc. Kyocera Corp.
Norwich Union plc Megaworld Properties &
Petroleo Brasileiro S.A. ADR Holdings, Inc.
Preferred
Phoenix AG
Polo Ralph Lauren Corp.
Repsol S.A. Mercury Finance Co.
Ryanair Holdings plc ADR MOL Magyar Olaj-es Gazipari
Stolt Comex Seaway, S.A. Rt. GDS
Supermercados Unimarc S.A. ADR Multicanal Participacoes S.A.
Telefonica de Espana, S.A. ADR ADR
Transocean Offshore, Inc. Open Joint Stock Vimpel
Uniao de Bancos Brasileiros Communications
S.A. GDR Owen Healthcare, Inc.
P.T. Telekomunikasi Indonesia
Physician Reliance Network,
Inc.
Puma AG
SQA, Inc.
Sun Hung Kai Properties, Ltd.
Tag Heuer International S.A.
ADR
Telefonica del Peru ADR
Tidewater, Inc.
Toolex Alpha NV
U.S. Robotics Corp.
FORTIS SERIES FUND: GLOBAL GROWTH SERIES
SLIGHTLY MORE AGGRESSIVE GROWTH INVESTORS WHO WANT TO DIVERSIFY AND EXPAND THEIR
HORIZONS BEYOND THE UNITED STATES MAY WANT TO CONSIDER THIS HIGHLY DIVERSIFIED
PORTFOLIO.
REVIEW
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 111 holdings in 26 different nations. Our
investment focus is on companies with strong market positions and superior
growth prospects relative to the respective local economy.
The Global Growth Series had a total return of 6.66 percent during the initial
six-month period of 1997. The portfolio's return was impacted by the lagging
performance of many medium-sized growth holdings in the United States. Since the
end of April, however, many of these issues have rebounded significantly as
investor concerns over rising interest rates in the United States have been
temporarily put to rest. The portfolio's focus on mid-sized growth companies
with strong growth prospects has over the longer term been a successful
strategy. However, these companies, at times, have a significant divergence in
performance from the major stock market indices such as the Dow Jones
Industrials and the Standard & Poor's 500.
The portfolio remains well diversified both geographically and by industry
sector. The portfolio has a significant exposure to European holdings (37
percent of assets) and the United States (40 percent of assets). Japan and other
Asian markets remain underweighted in the portfolio relative to the MSCI World
Index. We continue to search the world for individual companies which meet our
valuation and growth characteristics. Some of our key investment areas include
software-based technology companies, specialty consumer-related industries,
business services, and energy-related and health care organizations.
OUTLOOK
The Global Growth Series offers investors a significant exposure to the world's
dynamic growth industries. Due to greater geographic diversification, we have
been able to reduce some of the volatility generally associated with investing
in mid-sized high growth companies in any individual nation. The long-term
outlook for global investing remains favorable; however, many markets have had
significant upside moves during the initial six months of 1997 and will likely
go through a corrective phase during the second half of the year. Our focus
remains on companies with strong market shares, exceptional management and
outstanding growth prospects.
VALUE OF $10,000 INVESTED MAY 1, 1992
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
MSCI WORLD INDEX*** GLOBAL GROWTH PORTFOLIO
<S> <C> <C>
5/1/92 $10,000 $10,000
92 $10,057 $9,967
93 $11,828 $11,996
94 $13,102 $12,002
95 $14,571 $14,808
96 $17,340 $19,668
97 $21,260 $21,027
Global Growth Series
Average Annual Total Return*
Since
1 Year 5 Year May 1, 1992**
+6.91% +16.10% +15.48%
</TABLE>
Annual period ended June 30
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of the world's major equity markets in U.S. dollars,
weighted by stock market value.
16
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY
AS OF 6/30/97
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 26.2%
Cash Equivalents/Receivables 15.1%
Computer-Software 13.0%
Financial Services 8.6%
Health Care Services 8.0%
Retail-Specialty 7.6%
Telecommunication Equipment 7.0%
Telephone Services 5.0%
Computer-Communications Equipment 4.8%
Machinery-Oil and Well 4.7%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/97
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. WorldCom, Inc. 4.9%
2. Tellabs, Inc. 3.5%
3. BMC Software, Inc. 3.2%
4. Microsoft Corp. 3.0%
5. Oracle Corp. 3.0%
6. Cisco Systems, Inc. 2.8%
7. Oxford Health Plans, Inc. 2.6%
8. Petroleum Geo-Services 2.4%
9. Solectron Corp. 2.3%
10. Parametric Technology Corp. 2.0%
</TABLE>
PORTFOLIO CHANGES FOR THE
PERIOD ENDED 6/30/97
ADDITIONS: ELIMINATIONS:
American Express Co. Advanta Corp., Class B
Banc One Corp. Anadarko Petroleum
Cooper Cameron Corp. Corp.
Dollar Tree Stores, Inc. Barnes & Noble, Inc.
Dresser Industries, Inc. Chicago Miniature
PacifiCare Health Systems, Lamp, Inc.
Inc. Class B Computer Associates
Transocean Offshore, Inc. International, Inc.
First USA, Inc.
FORE Systems, Inc.
Informix Corp.
LCI International,
Inc.
La Quinta Inns, Inc.
MFS Communications
Co., Inc.
Mercury Finance Co.
Nike, Inc. Class B
Outback Steakhouse,
Inc.
PacifiCare Health
Systems, Inc. Class B
Paging Network, Inc.
Scholastic Corp.
Tidewater, Inc.
U.S. Robotics Corp.
Veritas Software Corp.
FORTIS SERIES FUND: GROWTH STOCK SERIES
THIS PORTFOLIO IS DESIGNED FOR INVESTORS WHO SEEK REWARD POTENTIAL ENTIRELY
THROUGH U.S. STOCKS. IT INVESTS IN MEDIUM-SIZED GROWTH COMPANIES THAT HAVE MOVED
BEYOND THE VENTURE STAGE.
REVIEW
After a weak first quarter, the performance of the Growth Portfolio recovered
nicely in the second quarter to post a 7.1 percent increase for the first half
of 1997. Although positive, this return was disappointingly below that of the
major stock market indices. While the Growth Portfolio invests mainly in
strongly growing mid-sized companies, the market's leadership has continued to
be clearly among the very large, multi-national companies. Nevertheless, the
Growth Portfolio's second quarter gain of 16.1 percent versus 17.4 percent for
the Standard & Poor's 500 Index was encouraging.
A wide range of holdings made positive contributions to portfolio performance in
the first half of the year, especially from the areas of technology, oil and gas
services, financial services and specialty retailing. Our largest number of
holdings remains in the broad area of technology, and the inherent volatility of
those stocks played out on the downside in the first quarter and strongly on the
upside in the second quarter. Our holdings of companies serving the oil and gas
exploration and production business have expanded significantly during the
current year, much to the benefit of portfolio performance. On the negative
side, certain technology, health care and consumer spending-related company
stocks have been disappointments so far this year.
OUTLOOK
Our outlook for the balance of 1997 continues to be based on very positive
economic fundamentals. The economy continues to grow without signs of
overheating, corporate profits remain strong, inflation remains benign and
interest rates seem to be contained within a fairly narrow range. The main wild
card in our outlook for stock prices is the market itself. The long upward move
in the stock market has pushed valuations toward, although still below,
historically high levels. Nevertheless, normal, periodic corrections should
contain the downside in the market as long as the favorable economic factors
referred to above remain intact.
VALUE OF $10,000 INVESTED MARCH 24, 1987
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
S&P 500*** GROWTH STOCK SERIES
<S> <C> <C> <C>
3/24/87 $10,000 $10,000
87 $10,514 $9,812
88 $9,788 $9,012
89 $11,797 $10,978
90 $13,732 $13,162
91 $14,746 $14,149
92 $16,732 $16,391
93 $19,005 $19,468
94 $19,260 $18,275
95 $24,274 $23,731
96 $30,623 $28,311
97 $41,035 $31,727
Growth Stock Series
Average Annual Total Return*
Since
1 Year 5 Year 10 Year March 24, 1987**
+12.06% +14.12% +12.45% +11.90%
</TABLE>
Annual period ended June 30
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of 500 common stocks.
17
<PAGE>
PORTFOLIO DIVERSIFICATION BY COUNTRY
AS OF 6/30/97
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Japan 21.5%
United Kingdom 19.1%
Germany 12.1%
France 11.8%
Switzerland 7.9%
Cash Equivalents/Receivables 7.5%
Other 5.3%
Italy 5.0%
Netherlands 3.7%
Sweden 3.4%
Hong Kong 2.7%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/97
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. British Aerospace (United Kingdom) 2.8%
2. Matsushita Electric Industrial Co. (Japan) 2.5%
3. Rhone Poulenc (France) 2.3%
4. Ricoh Corp. Ltd. (Japan) 2.3%
5. Elf Aquitaine (France) 2.2%
6. Sumitomo Trust & Bank (Japan) 2.2%
7. Novartis (Switzerland) 2.1%
8. Orix Corp. (Japan) 2.0%
9. Nippon Telegraph & Telephone Corp. (Japan) 2.0%
10. Viag (Germany) 2.0%
</TABLE>
PORTFOLIO CHANGES FOR THE
PERIOD ENDED 6/30/97
ADDITIONS: ELIMINATIONS:
Compagnie Gen De Eaux Warrants Accor S.A.
Emi Group plc Baloise Holdings Ltd.
Genting Berhad Coles Myer Ltd.
Havas S.A. Dai Nippon Printing Co. Ltd.
Holderbank Financiere Glaris Deutsche Telekom AG ADR
AG Empresa Nacional de
Ito-Yokado Co. Ltd. Electricidad
Lucasvarity plc NKK Corp.
Metallgesellschaft AG (a) Rohm Co.
Nippon Telegraph & Telephone Toyota Motor
Corp. Veba AG
Philips Electronics NV
Prudential Corp. plc
Rauma OY
Stet Societa' Finanziaria
Telefonica S.p.A.
S.M.H. AG
Telefonica de Espana
Viag AG
Zurich Versicherungs
FORTIS SERIES FUND: INTERNATIONAL STOCK SERIES
(SUBADVISED BY LAZARD FRERES ASSET MANAGEMENT)
INVESTORS WILLING TO BALANCE THE RISKS AND REWARDS OF INTERNATIONAL STOCK
INVESTING OFTEN SELECT THIS PORTFOLIO TO DIVERSIFY AN ESTABLISHED INVESTMENT
STRATEGY. IT FOCUSES EXCLUSIVELY ON GROWTH COMPANY STOCKS OUTSIDE OF THE UNITED
STATES.
REVIEW
International equity markets moved strongly ahead in the second quarter. After a
modest gain in the first quarter, the MSCI EAFE Index jumped 13 percent, led by
a 24 percent gain in Japan. Political news dominated headlines and fundamental
corporate change was at the heart of the impressive rise in European equity
markets. In the Pacific, the quarter closed with China peacefully regaining
control of Hong Kong after 156 years of British rule. The Lazard International
Equity Portfolio participated in most of this bull rise in the second quarter
and still leads the Index by a healthy margin.
Japan was the strongest performing equity market in dollar terms. Strong
performance of our domestic Japanese holdings, which began to close some of the
gap to the global exporters, offset low exposure to Japan. Ito-yokado
(retailing), Mitsui Marine & Fire (insurance), Orix (leasing), Promise (consumer
loans) and Sumitomo Trust (financial services) all significantly outperformed
the Nikkei Index. New legislation to allow easier share buybacks and
incentive-based stock options provided a further glimmer of change. European
equity markets steadily advanced to new heights during the quarter. Despite a
changing political climate, many European companies continue to forge a path of
value creation for their shareholders.
OUTLOOK
Looking ahead, the many changes indicate corporate progress that is likely to
drive equity performance for some time to come. Restructuring, however, is not a
cure-all. It is not a path without bumps and we closely monitor the ability of
companies to create shareholder value. So far, positive changes will far
outweigh negative ones.
VALUE OF $10,000 INVESTED JANUARY 3, 1995
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
INTERNATIONAL
MSCI EAFE*** STOCK SERIES
<S> <C> <C>
1/3/95 $10,000 $10,000
95 $10,276 $10,488
96 $11,707 $12,355
97 $13,237 $14,863
International Stock Series
Average Annual Total Return*
Since
1Year January 3, 1995**
+18.84% +16.68%
</TABLE>
Annual period ended June 30
Past performance is not indicative of future
performance. Investment return and principal value
will fluctuate so that shares, when redeemed, may
be worth more or less than their original cost.
This represents the performance of the Series
itself, without the expenses associated with the
variable annuities or variable universal life
insurance policies.
* SEC defined total returns, including
reinvestment of all dividend and capital
gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of the stocks of Europe,
Australia, and the Far East.
18
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY
AS OF 6/30/97
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 17.5%
Computer-Software 16.2%
Cash Equivalents/Receivables 15.3%
Business Services and Supplies 14.2%
Retail-Speciality 9.3%
Health Care Services 9.1%
Telephone Services 7.6%
Computer-Communications Equipment 4.0%
Restaurants and Franchising 3.6%
Telecommunication Equipment 3.2%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/97
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Acxiom Corp. 2.3%
2. Petroleum Geo-Services ADR 2.2%
3. United Waste System, Inc. 2.0%
4. Parametric Technology Corp. 1.9%
5. American Oncology Resources, Inc. 1.8%
6. Sterling Commerce, Inc. 1.7%
7. Cisco Systems, Inc. 1.7%
8. ABR Information Services, Inc. 1.6%
9. McLeod, Inc. Class A 1.6%
10. Input/Output, Inc. 1.5%
</TABLE>
PORTFOLIO CHANGES FOR THE
PERIOD ENDED 6/30/97
ADDITIONS: ELIMINATIONS:
Andrew Corp. (with rights) Advanced Fibre Communications
Arterial Vascular Engineering, American Eagle Outfitters,
Inc. Inc.
Blyth Industries, Inc. Citrix Systems, Inc.
Camco International, Inc. Cybercash, Inc.
Covance, Inc. CyberMedia, Inc.
Cracker Barrel Old Country Famous Dave's of America, Inc.
Store, Inc. Famous Dave's of America,
Dollar Tree Stores, Inc. Inc., Warrants
Envoy Corp. Fila Holdings S.p.A. ADR
Fiserv, Inc. Idexx Laboratories, Inc.
General Nutrition Companies, Informix Corp.
Inc. Infinity Financial Technology,
Marine Drilling Companies, Inc.
Inc. Lernout and Hauspie Speech
Paychex, Inc. Products N.V.
Stolt Comex Seaway, S.A. MFS Communications Co., Inc.
Stryker Corp. National Education Corp.
The Wet Seal, Inc. Quality Dining, Inc.
Viking Office Products, Inc. Rainforest Cafe, Inc.
WorldCom, Inc. Shiva Corp.
Transition Systems, Inc.
Trico Marine Services, Inc.
Westell Technologies, Inc.,
Class A
FORTIS SERIES FUND: AGGRESSIVE GROWTH SERIES
DESIGNED ESPECIALLY FOR THE MOST AGGRESSIVE, LONG-TERM INVESTOR WHO BELIEVES IN
THE ENTREPRENEURIAL OPPORTUNITIES OF AMERICA. THIS PORTFOLIO INVESTS IN SMALLER,
EMERGING GROWTH COMPANIES THAT HAVE HIGH UNIT GROWTH RATES FOR THEIR PRODUCTS OR
SERVICES.
REVIEW
After significantly underperforming during the initial four months of 1997, the
emerging growth sector finally rebounded in May. Stock market returns have
correlated with size so far in 1997, with the very largest "mega cap" issues
significantly outperforming stocks in the "smaller cap" universe. The Aggressive
Growth Series fund had a total return of -5.53 percent for the first half of
1997. During this period, downside volatility was experienced by the less liquid
issues when investors recognized that the Federal Reserve was not going to raise
interest rates further in late April. An unprecedented rebound took place in the
emerging growth sector.
The focus of the fund is on well-managed emerging growth companies. The
portfolio is well diversified with 89 holdings in numerous industry segments.
Important growth areas include technology, consumer goods and health care. In
recent months, we have reduced the fund's exposure to companies with limited
revenue size and trading liquidity. This has resulted in a increased average
size company in the portfolio. This should help to reduce future downside
volatility. The cash position of the fund is 15 percent as of June 30, 1997.
During most of the period, we maintained a larger cash position to buffer the
portfolio during a turbulent first quarter.
OUTLOOK
Valuations for emerging growth holdings appear reasonable relative to expected
long-term growth rates in earnings. After a significant rebound in performance,
however, a period of consolidation is likely in the second half of the year.
Longer term investing in the most dynamic growth sectors of the economy should
prove rewarding for investors with patience and the fortitude to increase their
investment when emerging growth stocks are out of favor.
VALUE OF $10,000 INVESTED MAY 2, 1994
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
S&P 500*** AGGRESSIVE GROWTH SERIES
5/2/94 $10,000 $10,000
<S> <C> <C>
94 $9,912 $9,133
95 $12,492 $11,352
96 $15,760 $14,722
97 $21,118 $12,960
Aggressive Growth Series
Average Annual Total Return*
Since
1 Year May 2, 1994**
- -11.97% +8.54%
</TABLE>
Annual period ended June 30
Past performance is not indicative of future
performance. Investment return and principal value
will fluctuate so that shares, when redeemed, may
be worth more or less than their original cost.
This represents the performance of the Series
itself, without the expenses associated with the
variable annuities or variable universal life
insurance policies.
* SEC defined total returns, including
reinvestment of all dividend and capital
gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of 500 common stocks.
19
<PAGE>
FORTIS SERIES FUND, INC.
MONEY MARKET SERIES
Schedule of Investments
June 30, 1997 (Unaudited)
SHORT-TERM INVESTMENTS-100.40%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
Principal & Poor's Market
Amount Rating Cost (a) Value (b)
----------- --------------- ------------ ------------
<C> <S> <C> <C> <C>
BANKS-20.91%
$1,400,000 Banc One Funding Corp., 5.73% 8-11-1997
(c)........................................ A1 $ 1,390,886 $ 1,390,886
3,000,000 Chase Manhattan Bank N.A., 5.54% 8-4-1997.... A1 2,984,425 2,984,425
3,300,000 Deutsche Bank Financial, Inc., 5.58%
8-6-1997................................... A1+ 3,313,088 3,300,091
347,000 First Trust Money Market Variable Rate Time
Deposit, Current rate -- 5.44%............. A1+ 347,000 347,000
3,200,000 Norwest Corp., 5.75% 7-14-1997............... A1+ 3,193,006 3,193,006
2,300,000 Toronto-Dominion Holdings USA, Inc., 5.81%
9-15-1997.................................. A1+ 2,272,353 2,272,402
------------ ------------
13,500,758 13,487,810
------------ ------------
BEVERAGE-3.24%
2,100,000 Pepsico, Inc., 5.60% 7-21-1997............... A1 2,093,262 2,093,262
------------ ------------
BROKERAGE AND INVESTMENT-5.06%
3,300,000 Merrill Lynch & Co., Inc., 5.72% 9-3-1997,
5.72% 9-3-1997............................. A1 3,266,812 3,266,574
------------ ------------
CAPTIVE AUTO FINANCE-9.96%
3,300,000 Ford Motor Credit Corp., 5.82% 8-20-1997..... A1 3,273,680 3,273,680
1,500,000 General Motors Acceptance Corp., 5.75%
9-11-1997.................................. P1* 1,482,997 1,482,936
1,700,000 General Motors Acceptance Corp., 5.90%
10-27-1997................................. P1* 1,668,081 1,668,475
------------ ------------
6,424,758 6,425,091
------------ ------------
CAPTIVE EQUIPMENT FINANCE-8.01%
2,000,000 IBM Credit Corp., 5.72% 7-14-1997............ A1 1,995,668 1,995,668
3,200,000 John Deere Capital Corp., 5.67% 8-26-1997.... A1 3,171,931 3,171,931
------------ ------------
5,167,599 5,167,599
------------ ------------
CONSUMER FINANCING-19.09%
3,100,000 American Express Credit Corp., 5.66%
7-7-1997................................... A1 3,096,661 3,096,661
3,200,000 American General Finance Corp., 5.79%
9-24-1997.................................. A1+ 3,157,191 3,157,114
2,800,000 Beneficial Corp., 5.74% 9-9-1997............. A1 2,769,186 2,769,021
3,300,000 Commercial Credit Corp., 5.74% 7-16-1997..... A1 3,291,787 3,291,787
------------ ------------
12,314,825 12,314,583
------------ ------------
DIVERSIFIED FINANCE-19.75%
2,902,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.42%...................... A1+ 2,902,000 2,902,000
3,300,000 CIT Group, Inc., 5.70% 7-9-1997.............. A1 3,295,413 3,295,413
3,300,000 General Electric Capital Corp., 5.94%
9-26-1997.................................. A1+ 3,253,859 3,254,747
3,300,000 Prudential Funding Corp., 5.65% 7-28-1997.... A1+ 3,285,806 3,285,806
------------ ------------
12,737,078 12,737,966
------------ ------------
INDUSTRIAL-5.11%
3,300,000 Xerox Credit Corp., 5.61% 7-10-1997.......... A1 3,294,958 3,294,958
------------ ------------
UTILITIES-ELECTRIC-9.27%
2,800,000 Duke Power Co., 5.60% 7-11-1997.............. A1+ 2,795,294 2,795,294
3,200,000 Wisconsin Electric Fuel Trust, 5.67%
7-28-1997.................................. A1+ 3,186,212 3,186,212
------------ ------------
5,981,506 5,981,506
------------ ------------
TOTAL SHORT-TERM INVESTMENTS (COST:
$64,781,556) (a)........................... $64,769,349
------------
------------
</TABLE>
(a) At June 30, 1997, the cost of securities for federal income tax purposes
was $64,781,556 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation........................................................................................... $ 1,331
Unrealized depreciation........................................................................................... (13,538)
- -----------------------------------------------------------------------------------------------------------------------------
Net unrealized depreciation....................................................................................... $ (12,207)
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(b) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(c) Commercial paper sold within the terms of private placement memorandums,
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. Market value of U.S. dollar denominated
investments in foreign securities represents 8.63% of net assets as of June
30, 1997.
* Moody's Rating
20
<PAGE>
FORTIS SERIES FUND, INC.
U.S. GOVERNMENT SECURITIES SERIES
Schedule of Investments
June 30, 1997 (Unaudited)
U.S. GOVERNMENT SECURITIES-94.86%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Cost (a) Value (b)
------------ ------------- -------------
<C> <S> <C> <C>
FEDERAL HOME LOAN MORTGAGE CORPORATION-0.73%
MORTGAGE BACKED SECURITIES:
$ 984,006 9.50% 2016................................... $ 1,058,883 $ 1,053,809
14,046 11.25% 2015.................................. 15,279 15,727
------------- -------------
TOTAL FEDERAL HOME LOAN MORTGAGE
CORPORATION................................ 1,074,162 1,069,536
------------- -------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION-21.53%
MORTGAGE BACKED SECURITIES:
4,234,759 6.50% 2010-2024 (e).......................... 4,172,196 4,148,257
11,470,154 7.00% 2003-2025.............................. 11,304,254 11,283,861
7,070,286 7.50% 2023-2026.............................. 7,081,871 7,085,763
260,451 8.50% 2017................................... 266,535 270,055
184,186 9.00% 2020-2021.............................. 183,798 193,972
1,172,569 9.75% 2020................................... 1,264,909 1,268,389
------------- -------------
24,273,563 24,250,297
------------- -------------
NOTES:
7,000,000 6.85% 2000................................... 7,000,000 7,050,463
------------- -------------
REMIC-PAC'S:
63,530 7.50% 2019................................... 65,883 63,356
------------- -------------
TOTAL FEDERAL NATIONAL MORTGAGE
ASSOCIATION................................ 31,339,446 31,364,116
------------- -------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION-11.31%
MORTGAGE BACKED SECURITIES:
9,430,000 7.50% 2023 (e)............................... 9,493,358 9,456,522
2,846,107 9.00% 2020................................... 2,981,297 3,005,309
647,136 9.125% 2018.................................. 662,463 652,701
3,148,065 9.50% 2018-2021.............................. 3,266,575 3,368,676
------------- -------------
TOTAL GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION................................ 16,403,693 16,483,208
------------- -------------
OTHER DIRECT FEDERAL OBLIGATIONS-15.68%
FEDERAL HOME LOAN BANK:
7,895,000 7.31% 2004................................... 7,916,738 8,172,738
------------- -------------
TENNESSEE VALLEY AUTHORITY:
15,000,000 6.375% 2005.................................. 14,383,275 14,675,520
------------- -------------
TOTAL OTHER DIRECT FEDERAL OBLIGATIONS....... 22,300,013 22,848,258
------------- -------------
OTHER GOVERNMENT AGENCIES-1.91%
RESOLUTION FUNDING CORPORATION:
9,000,000 8.395% Zero Coupon Strip 2014 (d)............ 2,440,354 2,781,891
------------- -------------
U.S. TREASURY SECURITIES-43.70%
BONDS:
4,340,000 8.125% 2019-2021............................. 4,812,531 4,961,104
------------- -------------
NOTES:
3,100,000 6.00% 1999................................... 3,098,065 3,095,155
5,825,000 6.125% 2001.................................. 5,732,447 5,768,567
5,400,000 6.25% 2007................................... 5,326,248 5,281,875
29,550,000 6.375% 2000.................................. 29,681,406 29,660,812
3,220,000 6.50% 2005................................... 3,212,332 3,211,950
300,000 6.625% 2002.................................. 300,642 302,719
11,150,000 6.875% 2006.................................. 11,277,666 11,379,969
------------- -------------
58,628,806 58,701,047
------------- -------------
TOTAL U.S. TREASURY SECURITIES............... 63,441,337 63,662,151
------------- -------------
TOTAL U.S. GOVERNMENT SECURITIES............. $ 136,999,005 $ 138,209,160
------------- -------------
------------- -------------
</TABLE>
21
<PAGE>
FORTIS SERIES FUND, INC.
U.S. GOVERNMENT SECURITIES SERIES (CONTINUED)
Schedule of Investments
June 30, 1997 (Unaudited)
SHORT-TERM INVESTMENTS-6.48%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (b)
----------- -------------
<C> <S> <C>
BANKS-1.68%
$2,447,000 First Trust Money Market Variable Rate Time
Deposit, Current rate -- 5.44%............. $ 2,447,000
-------------
DIVERSIFIED FINANCE-0.14%
205,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.42%...................... 205,000
-------------
U.S. GOVERNMENT AGENCY-4.66%
6,800,000 Federal National Mortgage Assoc., 5.52%,
7-10-1997.................................. 6,789,762
-------------
TOTAL SHORT-TERM INVESTMENTS................. $ 9,441,762
-------------
-------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$146,440,767) (a).......................... $ 147,650,922
-------------
-------------
</TABLE>
(a) At June 30, 1997, the cost of securities for federal income tax purposes
was $146,760,704 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation.......................................... $1,239,242
Unrealized depreciation.......................................... (349,024)
- -----------------------------------------------------------------------------
Net unrealized appreciation...................................... $ 890,218
- -----------------------------------------------------------------------------
</TABLE>
(b) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(c) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets.
(d) The interest rate disclosed for this security represents the effective
yield on the date of acquisition.
(e) The cost of securities purchased on a when-issued basis at June 30, 1997,
is $11,063,233.
22
<PAGE>
FORTIS SERIES FUND, INC.
DIVERSIFIED INCOME SERIES
Schedule of Investments
June 30, 1997 (Unaudited)
ASSET BACKED SECURITIES-26.36%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
Principal & Poor's Market
Amount Rating Cost (a) Value (b)
----------- ------------- ------------ ------------
<C> <S> <C> <C> <C>
AIRLINES-1.58%
$1,300,000 Delta Airlines, 10.50% Pass Thru Certificate
4-30-2016.................................. BBB $ 1,585,530 $ 1,601,085
------------ ------------
BANKS-0.99%
1,000,000 Mid-State Trust, 7.54% Ser 6 Class A3
7-1-2035................................... AA 999,375 1,005,938
------------ ------------
COMMERCIAL LOANS-14.29%
464,610 DLJ Mortgage Acceptance Corp., 7.28% Ser
1996-CF1 Class A-1A 3-13-2028 (e).......... AAA 468,063 472,305
1,250,000 First Union Lehman Brothers Commercial
Mortgage, 7.30% Ser 1997-C1 Class A2
12-18-2006................................. Aaa* 1,263,030 1,273,828
890,530 GS Mortgage Securities Corp. II Protective
Life, 7.02% Ser 1996-PL Class A1
3-1-2026................................... Aaa* 890,474 894,983
923,510 J.P. Morgan Commercial Mortgage Finance
Corp., 6.47% Ser 1996-C2 Class A
11-25-2027................................. AAA 930,119 897,633
2,213,152 Merrill Lynch Mortgage Investors, Inc.,
6.7887% Variable Rate Ser 1995-C3 Class A1
12-26-2025................................. AAA 2,200,545 2,220,521
969,400 Merrill Lynch Mortgage Investors, Inc.,
6.8151% Variable Rate Ser 1995-C2 Class A1
6-15-2021.................................. Aaa* 984,092 981,575
1,400,000 Merrill Lynch Mortgage Investors, Inc., 7.42%
Ser 1996-C1 Class B 4-25-2028.............. AA 1,365,113 1,414,584
1,000,000 Midland Realty Acceptance Corp., 7.76% Ser
1996-C1 Class B 7-25-2008.................. AA 1,009,589 1,035,938
600,000 Morgan Stanley Capital I, Inc., 7.3773% Ser
1996-WF1 Class A3 8-15-2006 (e)............ Aaa* 611,961 614,438
1,650,000 Mortgage Capital Funding, Inc., 7.90% Ser
1996-MC1 Class B 2-15-2006................. AA+ 1,665,804 1,717,780
2,000,000 Nationslink Funding Corp., 7.515% Ser 1996-1
Class A2 7-20-2005......................... AAA 2,002,288 2,051,875
899,349 Nationslink Funding Corp., 7.533% Ser 1996-1
Class A1 9-20-2002......................... AAA 907,019 922,395
------------ ------------
14,298,097 14,497,855
------------ ------------
MANUFACTURED HOMES-4.77%
1,800,000 Green Tree Financial Corp., 7.20% Ser 1993-4
Class B1 1-15-2019......................... Baa3* 1,787,223 1,801,688
1,500,000 Green Tree Financial Corp., 7.54% Ser 1997-2
Class M1 4-15-2028......................... Aa3* 1,499,298 1,516,875
1,500,000 Green Tree Financial Corp., 7.65% Ser 1994-1
Class A5 4-15-2019......................... Aa2* 1,494,141 1,526,370
------------ ------------
4,780,662 4,844,933
------------ ------------
MISCELLANEOUS-0.40%
403,092 Fifth Third Auto Grantor Trust, 6.70% Ser
1996-B Class B 3-15-2002................... A 402,842 405,482
------------ ------------
MULTI-FAMILY LOANS-4.33%
2,150,000 DLJ Mortgage Acceptance Corp., 8.50%
Multifamily Mtg Pass Thru Certificate Ser
1994-MF4 Class A2 4-18-2001................ A 2,184,448 2,217,170
1,500,000 DLJ Mortgage Acceptance Corp., 8.80%
Multifamily Mtg Pass Thru Certificate Ser
1993-MF12 Class B1 9-18-2003............... NR 1,473,750 1,572,105
813,298 Fund America Structured Transactions, L.P.,
Collateralized Note, 8.7625% Ser 1996-1
Class A Principal Only 1-1-2033 (e)(g)..... Baa3* 603,497 605,907
------------ ------------
4,261,695 4,395,182
------------ ------------
TOTAL ASSET BACKED SECURITIES................ $26,328,201 $26,750,475
------------ ------------
------------ ------------
</TABLE>
CORPORATE BONDS-INVESTMENT GRADE-31.82%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
Principal & Poor's Market
Amount Rating Cost (a) Value (b)
----------- ------------- ------------ ------------
<C> <S> <C> <C> <C>
AEROSPACE AND EQUIPMENT-0.50%
$ 500,000 Lockheed Martin Corp., 7.65% Deb 5-1-2016.... BBB+ $ 502,888 $ 506,291
------------ ------------
BANKS-7.40%
1,500,000 Bank Austria AG, 7.25% Sub Note 2-15-2017
(f)........................................ AAA 1,497,175 1,480,140
1,000,000 Citicorp Capital II, 8.015% Bond 2-15-2027... A- 1,000,000 1,003,812
1,500,000 Keystone Financial Funding Corp., 7.30%
Medium Term Note 5-15-2004................. BBB+ 1,496,371 1,512,660
2,000,000 Republic NY Capital I, 7.75% 11-15-2026...... A+ 1,938,005 1,961,162
1,100,000 Republic NY Capital II, 7.53% 12-4-2026...... A+ 1,052,994 1,054,853
500,000 St. Paul Bancorp, Inc., 7.125% Sr Note
2-15-2004.................................. BBB- 497,785 492,904
------------ ------------
7,482,330 7,505,531
------------ ------------
BROKERAGE AND INVESTMENT-4.44%
1,500,000 Bear Stearns Capital Trust I, 7.00% Variable
Rate Bond 1-15-2027........................ BBB 1,499,134 1,483,966
1,500,000 Lehman Brothers Holdings, 7.375% Sr Note
5-15-2004.................................. A 1,494,176 1,511,298
</TABLE>
23
<PAGE>
FORTIS SERIES FUND, INC.
DIVERSIFIED INCOME SERIES (CONTINUED)
Schedule of Investments
June 30, 1997 (Unaudited)
CORPORATE BONDS-INVESTMENT GRADE-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (a) Value (b)
----------- ------------- ------------ ------------
<C> <S> <C> <C> <C>
$ 500,000 Salomon, Inc., 6.75% Sr Note 2-15-2003....... BBB $ 499,152 $ 489,983
1,000,000 Salomon, Inc., 7.75% Sr Note 5-15-2000....... BBB 1,015,925 1,025,626
------------ ------------
4,508,387 4,510,873
------------ ------------
CABLE TELEVISION-1.06%
1,000,000 Comcast Cable Communications, Inc., 8.50%
Note 5-1-2027 (with rights) (f)............ BBB- 998,292 1,078,159
------------ ------------
CHEMICALS-0.94%
1,000,000 Lyondell Petrochemical, 7.55% Deb
2-15-2026.................................. BBB- 946,162 956,007
------------ ------------
ENERGY-1.49%
750,000 NGC Corp. Capital Trust, 8.316% 6-1-2027
(f)........................................ BBB 750,000 774,087
750,000 NGC Corp., 7.625% Deb 10-15-2026............. BBB+ 746,438 745,228
------------ ------------
1,496,438 1,519,315
------------ ------------
ENTERTAINMENT-0.84%
1,000,000 Six Flags Entertainment, 6.58% Zero Coupon
Note 12-15-1999 (d)........................ BBB- 852,791 850,130
------------ ------------
FINANCE COMPANIES-1.23%
1,250,000 Homeside Lending, Inc., 6.875% Medium Term
Note 6-30-2002............................. BBB 1,249,588 1,245,050
------------ ------------
FOREIGN-GOVERNMENT-1.23%
1,250,000 Poland (Republic of), 7.125% Yankee Bond
7-1-2004................................... BBB- 1,243,638 1,245,600
------------ ------------
MEDIA-1.06%
1,000,000 News America Holdings, 8.875% Deb
4-26-2023.................................. BBB 992,156 1,071,654
------------ ------------
NATURAL GAS TRANSMISSIONS-0.99%
1,000,000 Tennessee Gas Pipeline, 7.50% Bond
4-1-2017................................... BBB 984,118 1,001,511
------------ ------------
OIL-REFINING-2.91%
1,500,000 Coastal Corp., 7.42% Note 2-15-2037.......... BBB- 1,426,826 1,433,949
1,500,000 Tosco Corp., 7.80% Note 1-1-2027 (f)......... BBB- 1,498,327 1,516,140
------------ ------------
2,925,153 2,950,089
------------ ------------
REAL ESTATE-INVESTMENT TRUST-1.02%
1,000,000 Meditrust, 7.82% Note 9-10-2026.............. BBB- 1,000,000 1,037,913
------------ ------------
SUPRANATIONAL-0.99%
1,000,000 Corp Andina De Fomento, 7.10% Yankee Bond
2-1-2003................................... BBB+ 999,449 1,002,647
------------ ------------
TELECOMMUNICATIONS-0.99%
1,000,000 360 Communications Co., 7.50% Sr Note
3-1-2006................................... BBB- 997,906 1,003,774
------------ ------------
TELEPHONE SERVICES-2.03%
2,000,000 GTE Corp., 7.51% Note 4-1-2009............... A 1,983,971 2,059,360
------------ ------------
UTILITIES-ELECTRIC-2.70%
1,500,000 Empresa Nacional de Electricidad, 7.325%
Yankee Bond 2-1-2037....................... A- 1,500,000 1,502,766
1,250,000 Texas Utilities Electric Capital V, 8.125%
1-30-2037.................................. BBB 1,250,000 1,238,966
------------ ------------
2,750,000 2,741,732
------------ ------------
TOTAL CORPORATE BONDS - INVESTMENT GRADE..... $31,913,267 $32,285,636
------------ ------------
------------ ------------
</TABLE>
CORPORATE BONDS-NON-INVESTMENT GRADE-15.06%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
Principal & Poor's Market
Amount Rating Cost (a) Value (b)
----------- ------------- ------------ ------------
<C> <S> <C> <C> <C>
BROADCASTING-0.51%
$ 500,000 Sinclair Broadcasting Group, Inc., 10.00% Sr
Sub Note 9-30-2005......................... B $ 500,000 $ 515,000
------------ ------------
CABLE TELEVISION-2.62%
1,000,000 Australis Media Ltd., 16.20% Sr Sub Yankee
Note 5-15-2003 (Zero coupon through
5-15-2000, thereafter 15.75% (and
warrants)) (d)............................. NR 710,145 730,000
1,000,000 Cablevision Systems Corp., 10.50% Sr Sub Deb
5-15-2016.................................. B 1,014,864 1,100,000
</TABLE>
24
<PAGE>
CORPORATE BONDS-NON-INVESTMENT GRADE-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (a) Value (b)
----------- ------------- ------------ ------------
<C> <S> <C> <C> <C>
$ 500,000 Telewest Communications plc, 9.625% Yankee
Deb 10-1-2006.............................. B+ $ 515,778 $ 522,500
500,000 Wireless One, Inc., 13.00% Sr Note
10-15-2003................................. B- 489,358 310,000
------------ ------------
2,730,145 2,662,500
------------ ------------
COMPUTER-HARDWARE-1.06%
1,000,000 Unisys Corp., 11.75% Sr Note 10-15-2004...... B+ 1,087,388 1,080,000
------------ ------------
ENERGY-0.98%
1,000,000 Energy Corp. of America, 9.50% Sr Sub Note
5-15-2007 (e).............................. B 1,000,000 990,000
------------ ------------
FOOD-MISCELLANEOUS-1.08%
1,000,000 Envirodyne Industries, Inc., 12.00% First
Priority Sr Secured Note 6-15-2000......... B+ 1,000,000 1,092,500
------------ ------------
HEALTH CARE SERVICES-0.54%
500,000 Tenet Healthcare Corp., 10.125% Sr Sub Note
3-1-2005................................... B+ 531,842 547,500
------------ ------------
HOTEL AND MOTEL-1.02%
1,000,000 HMH Properties, Inc., 9.50% Sr Note
5-15-2005.................................. BB- 1,011,815 1,040,000
------------ ------------
HOUSING-0.52%
500,000 MDC Holdings, Inc., 11.125% Note
12-15-2003................................. B+ 527,097 532,500
------------ ------------
LEISURE TIME-AMUSEMENTS-1.96%
1,000,000 Station Casinos, Inc., 10.125% Sr Sub Note
3-15-2006.................................. B+ 1,008,712 1,010,000
1,000,000 Trump Atlantic City Associates Funding, Inc.,
11.25% First Mtg Bond 5-1-2006............. BB- 984,322 975,000
------------ ------------
1,993,034 1,985,000
------------ ------------
STEEL AND IRON-1.59%
1,000,000 AK Steel Corp., 10.75% Sr Note 4-1-2004...... BB- 1,091,474 1,076,250
500,000 Weirton Steel Corp., 11.375% Sr Note
7-1-2004................................... B 518,271 532,500
------------ ------------
1,609,745 1,608,750
------------ ------------
TELECOMMUNICATIONS-2.14%
500,000 Dobson Communications Corp., 11.75% Sr Note
4-15-2007.................................. NR 475,195 485,000
1,000,000 Paging Network, Inc., 10.125% Sr Sub Note
8-1-2007................................... B 1,040,279 970,000
1,000,000 Teleport Communications, 11.125% Sr Disc Note
7-1-2007 (Zero coupon until 7-1-2001,
thereafter 11.125%) (d).................... B 656,573 718,750
------------ ------------
2,172,047 2,173,750
------------ ------------
TEXTILE MANUFACTURING-1.04%
1,000,000 Pillowtex Corp., 10.00% Sr Sub Note
11-15-2006................................. B+ 1,053,973 1,052,500
------------ ------------
TOTAL CORPORATE BONDS - NON-INVESTMENT
GRADE...................................... $15,217,086 $15,280,000
------------ ------------
------------ ------------
</TABLE>
U.S. GOVERNMENT SECURITIES-23.61%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Cost (a) Value (b)
----------- ------------ ------------
<C> <S> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION-8.76%
MORTGAGE BACKED SECURITIES:
$2,613,530 6.50% 2010-2012 (h).......................... $ 2,581,379 $ 2,560,181
4,700,274 7.00% 2025................................... 4,629,983 4,606,278
1,712,491 7.50% 2022-2026.............................. 1,750,076 1,716,240
------------ ------------
TOTAL FEDERAL NATIONAL MORTGAGE
ASSOCIATION................................ 8,961,438 8,882,699
------------ ------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION-5.11%
MORTGAGE BACKED SECURITIES:
3,065,038 9.00% 2020................................... 3,210,627 3,236,487
611,359 9.125% 2018 Fleet Mortgage Securities Ser
1989-3 Class D 2108 (GNMA Backed).......... 620,120 616,616
1,251,539 9.50% 2019................................... 1,299,384 1,336,751
------------ ------------
TOTAL GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION................................ 5,130,131 5,189,854
------------ ------------
</TABLE>
25
<PAGE>
FORTIS SERIES FUND, INC.
DIVERSIFIED INCOME SERIES (CONTINUED)
Schedule of Investments
June 30, 1997 (Unaudited)
U.S. GOVERNMENT SECURITIES-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Cost (a) Value (b)
----------- ------------ ------------
<C> <S> <C> <C>
U.S. TREASURY SECURITIES-9.74%
BONDS:
$ 415,000 6.50% 2026................................... $ 399,438 $ 397,751
------------ ------------
NOTES:
1,300,000 6.25% 2007................................... 1,282,756 1,271,562
1,100,000 6.50% 2005................................... 1,087,240 1,097,250
4,670,000 6.625% 2002.................................. 4,670,434 4,712,320
590,000 7.00% 2006................................... 609,380 606,963
1,760,000 7.125% 1999.................................. 1,787,995 1,796,300
------------ ------------
9,437,805 9,484,395
------------ ------------
TOTAL U.S. TREASURY SECURITIES............... 9,837,243 9,882,146
------------ ------------
TOTAL U.S. GOVERNMENT SECURITIES............. $23,928,812 $23,954,699
------------ ------------
------------ ------------
TOTAL LONG-TERM INVESTMENTS.................. $97,387,366 $98,270,810
------------ ------------
------------ ------------
</TABLE>
SHORT-TERM INVESTMENTS-1.11%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (b)
----------- ------------
<C> <S> <C>
BANKS-1.11%
$1,128,000 First Trust Money Market Variable Rate Time
Deposit, Current rate -- 5.44%............. $ 1,128,000
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$98,515,366) (a)........................... $99,398,810
------------
------------
</TABLE>
(a) At June 30, 1997, the cost of securities for federal income tax purposes
was $98,516,917 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $1,395,212
Unrealized depreciation..................................... (513,319)
- ------------------------------------------------------------------------
Net unrealized appreciation................................. $ 881,893
- ------------------------------------------------------------------------
</TABLE>
(b) See Note 1 of accompanying Notes to Financial Statements regarding
valuations 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 6.40% of net assets as of June 30, 1997.
(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 private placement memorandums, exempt
from registration under Section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program of 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 6/30/97
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------
May 17, 1996 464,610 DLJ Mortgage Acceptance Corp., 7.28% Ser 468,063
1996-CF1 Class A1 3-13-2028
May 20, 1997 1,000,000 Energy Corp. of America, 9.50% Sr Sub 1,000,000
Note 5-15-2007
May 6, 1997 & March 7, 1996 813,298 Fund America Structured Transactions, 603,497
L.P. Collateralized Note, 8.7625% Ser
1996-1 Class A Principal Only 1-1-2033
June 11, 1997 600,000 Morgan Stanley Capital I, Inc., 7.3773% 611,961
Ser 1996 WF1 Class A3 8-15-2006
The value of these securities at June 30, 1997, is $2,682,650 which represents 2.64% of total net
assets.
</TABLE>
(f) Securities sold within the terms of private placement memorandums, exempt
from registration under section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program of other
"accredited investors". Pursuant to guidelines adopted by The Board of
Directors, these issues are deemed to be liquid. The value of these
securities at June 30, 1997, is $4,848,526 which represents 4.78% of total
net assets.
(g) The interest rate disclosed for principal only strips represent effective
yields at June 30, 1997, based upon future cash flows. The aggregate value
of this security at June 30, 1997, is $605,907 which represents .60% of
total net assets.
(h) The cost of securities purchased on a when-issued basis at June 30, 1997,
is $873,243.
* Moody's Rating
26
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL BOND SERIES
Schedule of Investments
June 30,1997 (Unaudited)
ASSET BACKED SECURITIES-4.51%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
Principal & Poor's Market
Amount (d) Rating Cost (a)(d) Value (b)(d)
--------------- ------------- ------------ ------------
<C> <S> <C> <C> <C>
NETHERLANDS-4.51%
$ 900,000 ARKAIG Finance Co. (US Dollar), 5.65766%
Floating Rate Note 3-19-1999............... AAA $ 899,845 $ 899,820
------------ ------------
</TABLE>
CORPORATE BONDS-INVESTMENT GRADE-61.47%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
Principal & Poor's Market
Amount (d) Rating Cost (a)(d) Value (b)(d)
--------------- ------------- ------------ ------------
<C> <S> <C> <C> <C>
AUSTRIA-3.70%
$ 700,000 Republic of Austria (US Dollar), 7.875%
3-26-2002.................................. AAA $ 735,993 $ 737,625
------------ ------------
CANADA-1.93%
470,000 Canadian Government (Canadian Dollar), 8.00%
6-1-2023................................... AAA 361,651 386,512
------------ ------------
DENMARK-7.33%
4,050,000 Kingdom of Denmark (Danish Krone), 8.00%
11-15-2001................................. AAA 728,644 685,799
4,550,000 Kingdom of Denmark (Danish Krone), 8.00%
5-15-2003.................................. AAA 838,223 776,642
------------ ------------
1,566,867 1,462,441
------------ ------------
GERMANY-10.42%
1,670,000 Bundesobl.V.95/oos.116 STV (German
Deutschemark), 5.75% 8-22-2000............. Aaa* 1,135,204 1,007,060
880,000 Deutsche Ausgleichsbank (German
Deutschemark), 6.375% 11-7-2002............ AAA 623,335 538,595
860,000 Landeskreditbank Baden-Wurttemberg (German
Deutschemark), 6.625% 8-20-2003............ AAA 613,278 531,536
------------ ------------
2,371,817 2,077,191
------------ ------------
ITALY-8.31%
1,080,000,000 Buoni Poliennali Del Tesoro (Italian Lira),
10.50% 4-1-2000............................ AAA 707,959 700,619
1,475,000,000 Buoni Poliennali Del Tesoro (Italian Lira),
9.50% 2-1-2001............................. AAA 987,606 955,651
------------ ------------
1,695,565 1,656,270
------------ ------------
JAPAN-7.11%
18,000,000 Int'l Bank Reconstruction & Development
(Japanese Yen), 4.50% 6-20-2000............ Aaa* 182,438 171,950
58,000,000 Int'l Bank Reconstruction & Development
(Japanese Yen), 5.25% 03-20-2002........... AAA 584,646 587,007
63,000,000 Japan Development Bank (Japanese Yen), 6.50%
9-20-2001.................................. Aaa* 664,286 658,257
------------ ------------
1,431,370 1,417,214
------------ ------------
NETHERLANDS-3.04%
1,100,000 Dutch Government (Dutch Guilders), 6.50%
4-15-2003.................................. NR 678,350 605,771
------------ ------------
SPAIN-12.10%
130,000,000 Bonos Y Obligation Del Estado (Spanish
Peseta), 7.40% 7-30-1999................... Aa2* 946,580 923,400
70,000,000 Bonos Y Obligation Del Estado (Spanish
Peseta), 7.90% 2-28-2002................... Aa2* 533,419 521,371
90,000,000 Bonos Y Obligation Del Estado (Spanish
Peseta), 8.00% Deb 5-30-2004............... Aa2* 685,925 674,678
38,000,000 Bonos Y Obligation Del Estado (Spanish
Peseta), 8.20% 2-28-2009................... Aa2* 294,634 293,210
------------ ------------
2,460,558 2,412,659
------------ ------------
UNITED KINGDOM-3.99%
410,000 United Kingdom Treasury (British Pound),
8.75% 8-25-2017............................ Aaa* 735,952 795,593
------------ ------------
UNITED STATES-3.54%
650,000 General Electric Capital Corp., 8.125%
2-23-2007.................................. AAA 706,342 705,656
------------ ------------
TOTAL CORPORATE BONDS - INVESTMENT GRADE..... $12,744,465 $12,256,932
------------ ------------
------------ ------------
</TABLE>
27
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL BOND SERIES (CONTINUED)
Schedule of Investments
June 30,1997 (Unaudited)
U.S. GOVERNMENT SECURITIES-11.16%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount (d) Cost (a)(d) Value (b)(d)
----------- ------------ ------------
<C> <S> <C> <C>
U.S. TREASURY SECURITIES-11.16%
BONDS:
$1,450,000 7.03% 2017 (e)............................... $ 375,553 $ 366,631
400,000 6.50% 2026................................... 402,173 383,375
400,000 8.125% 2019.................................. 458,721 456,125
------------ ------------
1,236,447 1,206,131
------------ ------------
NOTES:
500,000 6.625% 2007.................................. 498,684 504,062
500,000 7.00% 2006................................... 512,153 514,375
------------ ------------
1,010,837 1,018,437
------------ ------------
TOTAL U.S. GOVERNMENT SECURITIES............. $ 2,247,284 $ 2,224,568
------------ ------------
------------ ------------
TOTAL LONG-TERM INVESTMENTS.................. $15,891,594 $15,381,320
------------ ------------
------------ ------------
</TABLE>
SHORT-TERM INVESTMENTS-20.56%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount (d) Cost (a)(d) Value (b)(d)
----------- ------------ ------------
<C> <S> <C> <C>
U.S. TREASURY BILLS-17.68%
$1,500,000 U.S. Treasury Bill, 4.95% 9-18-1997.......... $ 1,482,500 $ 1,483,243
800,000 U.S. Treasury Bill, 4.96% 8-14-1997.......... 795,100 795,100
1,250,000 U.S. Treasury Bill, 5.21% 7-17-1997.......... 1,246,978 1,246,978
------------ ------------
3,524,578 3,525,321
------------ ------------
BANKS-0.00%
872 First Trust Money Market Variable Rate Time
Deposit, Current rate -- 5.44%............. 872 872
------------ ------------
INVESTMENT COMPANY-2.88%
574,316 First American Institutional Government Fund,
Current rate -- 5.43%...................... 574,316 574,316
------------ ------------
TOTAL SHORT-TERM INVESTMENTS................. $ 4,099,766 $ 4,100,509
------------ ------------
------------ ------------
TOTAL INVESTMENTS IN SECURITIES (a).......... $19,991,360 $19,481,829
------------ ------------
------------ ------------
</TABLE>
(a) At June 30, 1997, the cost of securities for federal income tax purposes
was $19,991,360 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 96,838
Unrealized depreciation..................................... (606,369)
- -------------------------------------------------------------------------
Net unrealized depreciation................................. $ (509,531)
- -------------------------------------------------------------------------
</TABLE>
(b) See Note 1 of accompanying Notes to Financial Statements regarding
valuations 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 are stated in U.S. dollars; principal amount is
stated in the currency indicated.
(e) The interest rate disclosed for these securities represents the effective
yields on the date of acquisition.
* Moody's Rating
28
<PAGE>
FORTIS SERIES FUND, INC.
HIGH YIELD SERIES
Schedule of Investments
June 30, 1997 (Unaudited)
COMMON STOCKS AND WARRANTS-0.24%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
------- ------------ ------------
<C> <S> <C> <C>
APPAREL-0.03%
250 Hosiery Corp. of America Class A (a)(f)...... $ 4,230 $ 15,000
------------ ------------
CABLE TELEVISION-0.00%
2,500 American Telecasting, Inc. (Warrants) (a).... 5,000 500
1,000 Australis Media Ltd. (Warrants) (a).......... 10 1
------------ ------------
5,010 501
------------ ------------
CONSUMER GOODS-0.00%
200 Chattem, Inc. (Warrants) (a)(f).............. 2,546 750
------------ ------------
ELECTRONIC-CONTROLS AND EQUIPMENT-0.04%
500 Electronic Retailing Systems (Warrants)
(a)(f)..................................... 19,676 20,000
------------ ------------
TELECOMMUNICATIONS-0.17%
1,000 American Communications Services, Inc.
(Warrants) (a)(f).......................... 45,700 45,000
3,300 Clearnet Communications, Inc. (Warrants)
(a)........................................ 42,075 26,400
2,560 Intercel, Inc. (Warrants) (a)................ 18,824 15,360
------------ ------------
106,599 86,760
------------ ------------
TOTAL COMMON STOCKS AND WARRANTS............. $ 138,061 $ 123,011
------------ ------------
------------ ------------
</TABLE>
CORPORATE BONDS-NON-INVESTMENT GRADE-95.36%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- ------------- ------------ ------------
<C> <S> <C> <C> <C>
AEROSPACE AND EQUIPMENT-0.36%
$ 175,000 K & F Industries, Inc., 11.875% Sr Secured
Note 12-1-2003............................. BB- $ 164,625 $ 184,240
------------ ------------
AUTOMOBILE AND MOTOR VEHICLE PARTS-3.19%
1,000,000 Collins & Aikman Products, 11.50% Sr Sub Note
4-15-2006.................................. B 1,120,881 1,132,500
500,000 J.B. Poindexter & Co., 12.50% Sr Note
5-15-2004.................................. B- 485,956 500,000
------------ ------------
1,606,837 1,632,500
------------ ------------
BANKS-0.97%
500,000 BankUnited Capital Trust, 10.25% Deb
12-31-2026................................. NR 492,503 495,000
------------ ------------
BROADCASTING-3.98%
250,000 Commodore Media, Inc., 12.71% Sr Sub Note
5-1-2003................................... B3* 243,668 272,500
1,000,000 Sinclair Broadcast Group, Inc., 9.00% Sr Sub
Note 7-15-2007 (g)......................... B 974,300 970,000
500,000 Sinclair Broadcasting Group, Inc., 10.00% Sr
Sub Note 9-30-2005......................... B 510,878 515,000
250,000 Spanish Broadcasting Systems, Inc., 12.50% Sr
Note 6-15-2002............................. B 260,533 276,875
------------ ------------
1,989,379 2,034,375
------------ ------------
BUILDING MATERIALS-2.01%
1,000,000 Reliant Building Product, 10.875% Sr Sub Note
5-1-2004 (f)............................... B3* 1,000,000 1,025,000
------------ ------------
CABLE TELEVISION-8.32%
1,008,750 Australis Media Ltd., 14.00% Sr Sub Disc Note
5-15-2003 (Zero coupon through 5-15-2000,
thereafter 15.75%) (e)..................... CCC- 672,179 736,387
2,000,000 Australis Media Ltd., 16.20% Sr Sub Disc Note
5-15-2003 (Zero coupon through 5-15-2000,
thereafter 15.75% (and warrants)) (e)...... NR 1,306,868 1,460,000
500,000 Diamond Cable Communications plc, 11.67% Sr
Disc Note 12-15-2005 (Zero coupon through
12-15-2000, thereafter 11.75%) (e)......... B- 338,750 337,500
500,000 Olympus Communication L.P., 10.625% Sr Note
11-15-2006................................. B 500,000 525,000
1,500,000 Wireless One, Inc., 13.00% Sr Note
10-15-2003................................. B- 1,162,261 930,000
1,000,000 Wireless One, Inc., 13.463% Sr Disc Note
8-1-2006 (Zero coupon through 8-1-2001,
thereafter 13.50%) (and warrants) (e)...... B- 588,145 265,000
------------ ------------
4,568,203 4,253,887
------------ ------------
</TABLE>
29
<PAGE>
FORTIS SERIES FUND, INC.
HIGH YIELD SERIES (CONTINUED)
Schedule of Investments
June 30, 1997 (Unaudited)
CORPORATE BONDS-NON-INVESTMENT GRADE-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- ------------- ------------ ------------
<C> <S> <C> <C> <C>
CHEMICALS-9.82%
$ 500,000 Agricultural Minerals & Chemicals, 10.75% Sr
Note 9-30-2003............................. BB- $ 524,755 $ 540,000
1,000,000 LaRoche Industries, Inc., 13.00% Sr Sub Note
8-15-2004.................................. B 1,082,141 1,110,000
1,000,000 NL Industries, Inc., 11.75% Sr Secured Note
10-15-2003................................. B 1,101,691 1,088,750
1,000,000 Sterling Chemical Holdings, 11.84% Sr Disc
Note 8-15-2008 (Zero coupon through
8-15-2001, thereafter 13.50%) (e).......... B+ 659,791 660,000
1,000,000 Sterling Chemicals, Inc., 11.75% Sr Sub Note
8-15-2006.................................. B+ 1,049,446 1,080,000
500,000 Terra Industries, 10.50% Sr Note 6-15-2005... BB- 529,394 541,250
------------ ------------
4,947,218 5,020,000
------------ ------------
COMPUTER-HARDWARE-2.11%
1,000,000 Unisys Corp., 11.75% Sr Note 10-15-2004...... B+ 1,088,754 1,080,000
------------ ------------
CONSUMER GOODS-3.23%
250,000 Chattem, Inc., 12.75% Sr Sub Note Ser B
6-15-2004.................................. B- 258,753 278,750
500,000 Drypers Corp., 10.25% Sr Note 6-15-2007
(f)........................................ B 501,249 495,000
1,000,000 Remington Product Co. LLC, 11.00% Sr Sub Note
5-15-2006.................................. CCC+ 860,467 880,000
------------ ------------
1,620,469 1,653,750
------------ ------------
DAIRY PRODUCTS-1.90%
1,000,000 Fage Dairy Industries, Inc., 9.00% Sr Note
7-1-2007 (f)............................... BB 980,455 970,000
------------ ------------
ELECTRONIC-CONTROLS AND EQUIPMENT-0.64%
500,000 Electronic Retailing Systems, 13.25% Sr Disc
Note 2-1-2004 (Zero Coupon until 2-1-2000,
thereafter 13.25%) (e)(f).................. NR 346,020 325,000
------------ ------------
ENERGY-3.11%
500,000 Belden & Blake, 9.875% Sr Sub Note 6-15-2007
(f)........................................ NR 500,000 496,250
1,000,000 Benton Oil & Gas, 11.625% Sr Note 5-1-2003... B+ 1,075,436 1,092,500
------------ ------------
1,575,436 1,588,750
------------ ------------
FINANCE COMPANIES-0.18%
81,000 Homeside, Inc., 11.25% Sr Secured Second
Priority Note 5-15-2003.................... BB+ 81,000 94,163
------------ ------------
FOOD-MISCELLANEOUS-2.14%
1,000,000 Envirodyne Industries, Inc., 12.00% First
Priority Sr Secured Note 6-15-2000......... B+ 1,059,797 1,092,500
------------ ------------
FOREST PRODUCTS-1.57%
1,000,000 Ivex Holdings Corp., 11.29% Sr Disc Deb
3-15-2005 (Zero Coupon until 3-15-2000,
thereafter 13.25%) (e) B- 797,168 805,000
------------ ------------
HEALTH CARE SERVICES-2.65%
250,000 Healthsouth Corp., 9.50% Sr Sub Note
4-1-2001................................... BB- 258,919 262,500
1,000,000 Tenet Healthcare Corp., 10.125% Sr Sub Note
3-1-2005................................... B+ 1,099,002 1,095,000
------------ ------------
1,357,921 1,357,500
------------ ------------
HOTEL AND MOTEL-2.03%
1,000,000 HMH Properties, Inc., 9.50% Sr Note
5-15-2005.................................. BB- 1,006,415 1,040,000
------------ ------------
HOUSING-4.15%
1,500,000 MDC Holdings, Inc., 11.125% Note
12-15-2003................................. B+ 1,547,709 1,597,500
500,000 NVR, Inc., 11.00% Sr Note 4-15-2003.......... B 530,093 525,000
------------ ------------
2,077,802 2,122,500
------------ ------------
INDUSTRIAL-5.06%
500,000 Amtrol, Inc., 10.625% Sr Sub Note
12-31-2006................................. B- 512,174 511,250
1,000,000 Exide Corp., 10.75% Sr Note 12-15-2002 (f)... B+ 1,060,967 1,052,500
1,000,000 Inter-City Products Corp. USA, 9.75% Sr
Secured Note 3-1-2000...................... B- 1,019,255 1,025,000
------------ ------------
2,592,396 2,588,750
------------ ------------
LEISURE TIME-AMUSEMENTS-6.56%
500,000 Argosy Gaming Co., 13.25% First Mortgage Bond
6-1-2004................................... B+ 491,273 481,250
1,000,000 Mohegan Tribal Gaming, 13.50% Sr Note
11-15-2002................................. BB+ 1,223,175 1,310,000
1,000,000 Station Casinos, Inc., 10.125% Sr Sub Note
3-15-2006.................................. B+ 1,008,716 1,010,000
</TABLE>
30
<PAGE>
CORPORATE BONDS-NON-INVESTMENT GRADE-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- ------------- ------------ ------------
<C> <S> <C> <C> <C>
$ 500,000 Waterford Gaming LLC, 12.75% Sr Note
11-15-2003 (f)............................. NR $ 561,044 $ 556,250
------------ ------------
3,284,208 3,357,500
------------ ------------
MACHINERY-2.07%
1,000,000 Clark Materials Handling, 10.75% Sr Note
11-15-2006................................. B+ 1,028,297 1,057,500
------------ ------------
PUBLISING-2.44%
1,000,000 Marvel (Parent) Holdings, Inc., 14.46% Sr
Secured Zero Coupon Discount Note 4-15-1998
(a)(e)..................................... D 845,091 135,000
1,000,000 Petersen Publishing Co. LLC, 11.125% Sr Sub
Note 11-15-2006............................ B- 1,063,974 1,115,000
------------ ------------
1,909,065 1,250,000
------------ ------------
STEEL AND IRON-6.15%
1,000,000 AK Steel Corp., 10.75% Sr Note 4-1-2004...... BB- 1,086,400 1,076,250
500,000 CSN Iron Panama, 9.125% Sr Note 6-1-2007
(f)........................................ NR 497,752 488,750
500,000 WCI Steel, Inc., 10.00% Sr Note 12-1-2004.... B+ 520,000 517,500
1,000,000 Weirton Steel Corp., 11.375% Sr Note
7-1-2004................................... B 1,048,036 1,065,000
------------ ------------
3,152,188 3,147,500
------------ ------------
TECHNOLOGY-1.98%
1,000,000 Viasystems, Inc., 9.75% Sr Sub Note 6-1-2007
(f)........................................ B- 1,000,000 1,015,000
------------ ------------
TELECOMMUNICATIONS-13.77%
500,000 Cellular Communications, Inc., 11.96% Zero
Coupon Note 8-15-2000 (e).................. CCC+ 358,677 381,250
500,000 Fonorola, Inc., 12.50% Sr Secured Note
8-15-2002.................................. B+ 516,461 555,000
800,000 Intercel, Inc., 10.935% Sr Disc Note 2-1-2006
(Zero coupon until 2-1-2001, thereafter
12.00%) (e)................................ B 552,887 512,000
500,000 Metrocall, Inc., 10.375% Sr Sub Note
10-1-2007.................................. CCC 434,166 457,500
1,000,000 Nextel Communications, 11.84% Sr Disc Note
8-15-2004 (Zero coupon through 2-15-1999,
thereafter 9.75%) (e)...................... CCC- 781,184 770,000
500,000 Omnipoint Corp., 11.625% Sr Note 8-15-2006... CCC+ 480,013 480,000
1,000,000 Phonetel Technologies, 12.00% Sr Note
12-15-2006................................. B- 1,002,482 1,010,000
1,000,000 PriCellular Wireless Corp., 12.25% Sr Disc
Note 10-1-2003 (Zero coupon until
10-1-1998, thereafter 12.25%) (e).......... CCC+ 948,865 940,000
1,000,000 Shared Technologies Fairchild, 10.969% Sr Sub
Note 3-1-2006 (Zero coupon until 3-1-2001,
thereafter 12.25%) (e)..................... Caa* 886,728 895,000
500,000 Western Wireless Corp., 10.50% Sr Sub Note
6-1-2006................................... B- 523,218 519,375
500,000 Western Wireless, 10.50% Sr Sub Note
2-1-2007................................... B- 500,000 519,375
------------ ------------
6,984,681 7,039,500
------------ ------------
TEXTILE MANUFACTURING-2.06%
1,000,000 Pillowtex Corp., 10.00% Sr Sub Note
11-15-2006................................. B+ 1,050,135 1,052,500
------------ ------------
TRANSPORTATION-2.09%
1,000,000 Greyhound Lines, Inc., 11.50% Sr Note
4-15-2007 (f).............................. NR 1,057,105 1,070,000
------------ ------------
WASTE DISPOSAL-0.82%
375,000 Norcal Waste Systems, Inc., 13.00% Increasing
Rate Sr Note 11-15-2005 (e)................ BB- 371,377 420,000
------------ ------------
TOTAL CORPORATE BONDS - NON-INVESTMENT
GRADE...................................... $49,189,454 $48,772,415
------------ ------------
------------ ------------
TOTAL LONG-TERM INVESTMENTS.................. $49,327,515 $48,895,426
------------ ------------
------------ ------------
</TABLE>
31
<PAGE>
FORTIS SERIES FUND, INC.
HIGH YIELD SERIES (CONTINUED)
Schedule of Investments
June 30, 1997 (Unaudited)
SHORT-TERM INVESTMENTS-1.63%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
--------- ------------
<C> <S> <C>
BANKS-0.28%
$143,000 First Trust Money Market Variable Rate Time
Deposit, Current rate -- 5.44%............. $ 143,000
------------
DIVERSIFIED FINANCE-1.35%
690,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.42%...................... 690,000
------------
TOTAL SHORT-TERM INVESTMENTS................. $ 833,000
------------
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$50,160,515) (B)........................... $49,728,426
------------
------------
</TABLE>
(a) Presently non-income producing. For long-term debt securities, items
identified are in default as to payment of interest and/or principal.
(b) At June 30, 1997, the cost of securities for federal income tax purposes
was $50,167,764, and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 1,079,614
Unrealized depreciation..................................... (1,518,952)
- -------------------------------------------------------------------------
Net Unrealized depreciation................................. $ (439,338)
- -------------------------------------------------------------------------
</TABLE>
(c) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets. Market value of investments in foreign
securities represents 8.89% of net assets as of June 30, 1997.
(e) The interest rates disclosed for these securities represent 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 other "accredited
investors". These investments have been identified by portfolio management
as illiquid securities:
<TABLE>
<CAPTION>
DATE ACQUIRED SHARES/PAR SECURITY COST BASIS
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
November 10, 1995 1,000 American Communications Services, Inc. (Warrants) 45,700
June 23, 1997 500,000 Belden & Blake, 9.875% 6-15-2007 500,000
June 10, 1994 200 Chattem, Inc. (Warrants) 2,546
June 17, 1997 500,000 CSN Iron Panama, 9.125% 6-1-2007 497,752
June 17, 1997 250,000 Drypers Corp., 10.25% 6-15-2007 250,000
June 19, 1997 250,000 Drypers Corp., 10.25% 6-15-2007 251,249
January 21, 1997 500 Electronic Retailing Systems (Warrants) 19,676
January 21, 1997 500,000 Electronic Retailing Systems, 13.25% 2-1-2004 346,020
June 16, 1997 1,000,000 Exide Corp., 10.75% 12-15-2002 1,060,967
February 6, 1997 1,000,000 Fage Dairy Industries, Inc., 9.00% 7-1-2007 980,455
May 14, 1997 1,000,000 Greyhound Lines, Inc., 11.50% 4-15-2007 1,057,105
October 7, 1994 250 Hosiery Corp. of America Class A 4,230
May 5, 1997 500,000 Reliant Building Products, 10.875% 5-1-2004 1,000,000
June 2, 1997 1,000,000 Viasystems, Inc., 9.75% 6-1-2007 1,000,000
June 17, 1997 500,000 Waterford Gaming LLC, 12.75% 11-15-2003 561,045
The value of these securities at June 30, 1997, was $7,574,500, which represents 14.81% of total net assets.
</TABLE>
(g) 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 other "accredited
investors". Pursuant to guidelines adopted by the Board of Directors, these
issues are determined to be liquid. The value of this security at June 30,
1997, was $970,000, which represents 1.90% of total net assets.
* Moody's Rating
32
<PAGE>
FORTIS SERIES FUND, INC.
ASSET ALLOCATION SERIES
Schedule of Investments
June 30, 1997 (Unaudited)
COMMON STOCKS-54.86%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
--------- ------------- -------------
<C> <S> <C> <C>
AUTOMOBILE AND MOTOR VEHICLE PARTS-0.63%
46,000 Magna International, Inc. Class A............ $ 2,185,416 $ 2,768,625
------------- -------------
BANKS-1.40%
53,000 Banc One Corp................................ 2,049,927 2,567,187
13,000 U.S. Bancorp................................. 730,905 833,625
53,000 Union Planters Corp.......................... 1,839,620 2,749,375
------------- -------------
4,620,452 6,150,187
------------- -------------
BIOMEDICS, GENETICS RESEARCH AND DEVELOPMENT-0.90%
33,000 Amgen, Inc. (a).............................. 1,856,402 1,918,125
66,000 Centocor, Inc. (a)........................... 2,318,401 2,050,125
------------- -------------
4,174,803 3,968,250
------------- -------------
BUSINESS SERVICES AND SUPPLIES-0.78%
53,114 First Data Corp.............................. 1,188,880 2,333,696
45,000 Ingram Micro, Inc. Class A (a)............... 893,400 1,085,625
------------- -------------
2,082,280 3,419,321
------------- -------------
CHEMICALS-0.62%
63,000 Monsanto Co.................................. 2,602,164 2,712,937
------------- -------------
COMPUTER-COMMUNICATIONS EQUIPMENT-0.58%
39,000 Cisco Systems, Inc. (a)...................... 467,866 2,617,875
------------- -------------
COMPUTER-SOFTWARE-4.75%
70,300 Fiserv, Inc. (a)............................. 2,598,130 3,137,137
67,000 Microsoft Corp. (a).......................... 1,427,368 8,467,125
65,050 Oracle Corp. (a)............................. 289,289 3,276,894
141,919 Sterling Commerce, Inc. (a).................. 2,383,221 4,665,587
43,000 Sterling Software, Inc. (a).................. 444,105 1,343,750
------------- -------------
7,142,113 20,890,493
------------- -------------
CONSTRUCTION-0.41%
33,000 Fluor Corp................................... 2,445,623 1,821,187
------------- -------------
CONTAINERS AND PACKAGING-0.49%
40,500 Crown Cork & Seal Company, Inc............... 1,875,060 2,164,219
------------- -------------
DRUGS-3.23%
73,200 Forest Laboratories, Inc. (a)................ 2,735,536 3,033,225
45,000 Lilly (Eli) & Co., Inc....................... 2,797,817 4,919,063
73,000 Mylan Laboratories, Inc...................... 1,198,682 1,076,750
34,200 Teva Pharmaceutical Industries Ltd. ADR...... 1,696,950 2,214,450
24,000 Warner-Lambert Co............................ 2,170,147 2,982,000
------------- -------------
10,599,132 14,225,488
------------- -------------
ELECTRICAL EQUIPMENT-1.51%
102,000 General Electric Co.......................... 4,493,271 6,668,250
------------- -------------
ELECTRONIC-SEMICONDUCTOR AND CAPACITOR-1.92%
25,000 Intel Corp................................... 1,478,690 3,545,313
64,400 Motorola, Inc................................ 2,884,391 4,894,400
------------- -------------
4,363,081 8,439,713
------------- -------------
FINANCE SERVICES-4.63%
169,000 Fannie Mae................................... 4,410,213 7,372,625
99,196 Green Tree Financial Corp.................... 1,421,270 3,533,858
136,250 MBNA Corp.................................... 1,912,740 4,990,156
94,000 MGIC Investment Corp......................... 3,146,689 4,506,125
------------- -------------
10,890,912 20,402,764
------------- -------------
<CAPTION>
Market
Shares Cost (b) Value (c)
--------- ------------- -------------
<C> <S> <C> <C>
FOOD-2.48%
227,000 Archer-Daniels-Midland Co.................... $ 4,765,405 $ 5,334,500
45,600 ConAgra, Inc................................. 1,998,455 2,924,100
58,000 Heinz (H.J.) Co.............................. 1,852,810 2,675,250
------------- -------------
8,616,670 10,933,850
------------- -------------
HEALTH CARE SERVICES-2.12%
39,000 Cardinal Health, Inc......................... 1,848,080 2,232,750
120,000 Columbia/HCA Healthcare Corp................. 3,713,031 4,717,500
33,000 Oxford Health Plans, Inc. (a)................ 1,235,312 2,367,750
------------- -------------
6,796,423 9,318,000
------------- -------------
HOTEL AND GAMING-1.12%
105,500 Mirage Resorts, Inc. (a)..................... 1,199,434 2,663,875
61,000 Sun International Hotels Ltd. (a)............ 2,934,931 2,253,188
------------- -------------
4,134,365 4,917,063
------------- -------------
INSURANCE-3.06%
64,000 American International Group, Inc............ 6,578,642 9,560,000
104,000 Hartford Life, Inc. (a)...................... 3,390,637 3,900,000
------------- -------------
9,969,279 13,460,000
------------- -------------
MEDICAL SUPPLIES-0.56%
37,000 Abbott Laboratories.......................... 1,681,465 2,469,750
------------- -------------
MEDICAL TECHNOLOGY-2.20%
45,900 Boston Scientific Corp. (a).................. 1,892,442 2,819,981
75,600 Depuy, Inc. (a).............................. 1,323,000 1,738,800
63,200 Medtronic, Inc. (and rights)................. 2,186,423 5,119,200
------------- -------------
5,401,865 9,677,981
------------- -------------
OIL AND GAS FIELD SERVICES-2.50%
38,900 Camco International, Inc..................... 1,691,080 2,129,775
48,000 Domain Energy Corp. (a)...................... 648,000 648,000
59,200 Precision Drilling Corp. (a)................. 2,174,937 2,863,800
43,000 Schlumberger Ltd............................. 3,979,114 5,375,000
------------- -------------
8,493,131 11,016,575
------------- -------------
OIL-CRUDE PETROLEUM AND GAS-1.71%
31,200 Noble Affiliates, Inc........................ 1,380,744 1,207,050
100,400 Nuevo Energy Co. (a)......................... 3,991,559 4,116,400
151,000 Santa Fe Energy Resources, Inc. (a).......... 2,193,754 2,217,813
------------- -------------
7,566,057 7,541,263
------------- -------------
OIL-OFFSHORE DRILLING-0.29%
37,000 Santa Fe International Corp. (a)............. 1,100,910 1,258,000
------------- -------------
PAPER-0.38%
62,000 U.S. Filter Corp. (a)........................ 1,951,302 1,689,500
------------- -------------
PUBLISHING-0.56%
51,000 Time Warner, Inc............................. 2,384,250 2,460,750
------------- -------------
RAILROAD AND RAILROAD EQUIPMENT-0.43%
112,500 Tranz Rail Holdings Ltd. ADR................. 2,025,000 1,898,438
------------- -------------
RETAIL-DEPARTMENT STORES-1.00%
83,200 Kohl's Corp. (a)............................. 1,624,871 4,404,400
------------- -------------
RETAIL-SPECIALTY-4.68%
191,000 Costco Companies, Inc. (a)................... 3,371,589 6,279,125
163,050 CUC International, Inc. (a).................. 2,862,366 4,208,728
81,500 Home Depot, Inc.............................. 3,542,446 5,618,406
56,000 Lowe's Companies, Inc........................ 2,231,318 2,079,000
</TABLE>
33
<PAGE>
FORTIS SERIES FUND, INC.
ASSET ALLOCATION SERIES (CONTINUED)
Schedule of Investments
June 30, 1997 (Unaudited)
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
--------- ------------- -------------
<C> <S> <C> <C>
70,500 Pep Boys-Manny Moe & Jack.................... $ 2,279,307 $ 2,401,406
------------- -------------
14,287,026 20,586,665
------------- -------------
TELECOMMUNICATIONS-0.01%
1,000 Hyperion Telecom (Warrants) (e).............. 4,022 25,000
------------- -------------
TELECOMMUNICATION EQUIPMENT-2.17%
104,000 Ericsson (L.M.) Telephone Co. Class B ADR.... 1,185,552 4,095,000
98,000 Tellabs, Inc.(a)............................. 1,981,118 5,475,750
------------- -------------
3,166,670 9,570,750
------------- -------------
TELEPHONE SERVICES-2.35%
154,000 AirTouch Communications, Inc. (a)............ 4,074,979 4,215,750
190,988 WorldCom, Inc. (a)........................... 2,195,852 6,111,616
------------- -------------
6,270,831 10,327,366
------------- -------------
TOBACCO-1.33%
132,000 Philip Morris Companies, Inc................. 4,750,716 5,857,500
------------- -------------
<CAPTION>
Market
Shares Cost (b) Value (c)
--------- ------------- -------------
<C> <S> <C> <C>
TOYS-1.24%
161,651 Mattel, Inc.................................. $ 2,523,828 $ 5,475,928
------------- -------------
UTILITIES-ELECTRIC-1.36%
65,100 AES Corp. (a)................................ 3,253,045 4,605,825
94,900 Tucson Electric Power Co. (a)................ 1,584,142 1,376,050
------------- -------------
4,837,187 5,981,875
------------- -------------
UTILITIES-TELEPHONE-0.86%
65,000 Deutsche Telekom AG ADR...................... 1,227,850 1,568,125
14,500 Telebras ADR................................. 1,249,973 2,200,375
------------- -------------
2,477,823 3,768,500
------------- -------------
WASTE DISPOSAL-0.60%
68,000 U.S.A. Waste Services, Inc. (a).............. 2,429,286 2,626,500
------------- -------------
TOTAL COMMON STOCKS.......................... $ 160,435,150 $ 241,514,963
------------- -------------
------------- -------------
</TABLE>
ASSET BACKED SECURITIES-8.97%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- ------------- ------------- -------------
<C> <S> <C> <C> <C>
BANKS-0.57%
$1,000,000 Mid-State Trust, 7.54% Ser 6 Class A3
7-1-2035................................... AA $ 999,375 $ 1,005,938
1,500,000 PNC Mortgage Securities Corp., 7.50% Ser 1997
Class 2PP1 7-25-2027....................... AAA 1,496,484 1,502,344
------------- -------------
2,495,859 2,508,282
------------- -------------
COMMERCIAL LOANS-4.64%
1,858,012 DLJ Mortgage Acceptance Corp., 7.28% Ser
1996-CF1 Class A-1A 3-13-2028 (e).......... AAA 1,871,819 1,888,785
2,500,000 First Union Lehman Brothers Commercial
Mortgage, 7.30% Ser 1997-C1 Class A2
12-18-2006................................. Aaa* 2,526,061 2,547,656
2,894,224 GS Mortgage Securities Corp. II Protective
Life, 7.02% Ser 1996-PL Class A1
3-1-2026................................... Aaa* 2,852,006 2,908,695
1,385,265 J.P. Morgan Commercial Mortgage Finance
Corp., 6.47% Ser 1996-C2 Class A
11-25-2027................................. AAA 1,395,178 1,346,450
1,360,000 J.P. Morgan Commercial Mortgage Finance
Corp., 7.472% Ser 1997-C4 Class B
12-26-2028................................. AA 1,370,168 1,387,200
1,600,000 Merrill Lynch Mortgage Investors, Inc., 7.42%
Ser 1996-C1 Class B 4-25-2028.............. AA 1,602,475 1,616,667
1,200,000 Midland Realty Acceptance Corp., 7.76% Ser
1996-C1 Class B 7-25-2008.................. AA 1,211,506 1,243,125
550,000 Morgan Stanley Capital I, Inc., 7.3773% Ser
1996-WF1 Class A3 8-15-2006 (e)............ Aaa* 560,964 563,235
1,075,000 Mortgage Capital Funding, Inc., 7.288% Ser
1997-MC1 Class A3 3-20-2007................ Aaa* 1,085,748 1,089,109
1,000,000 Mortgage Capital Funding, Inc., 7.90% Ser
1996-MC1 Class B 2-15-2006................. AA+ 1,009,578 1,041,079
1,870,000 Nationslink Funding Corp., 7.515% Ser 1996-1
Class A2 7-20-2005......................... AAA 1,872,139 1,918,503
2,787,982 Nationslink Funding Corp., 7.533% Ser 1996-1
Class A1 9-20-2002......................... AAA 2,802,526 2,859,424
------------- -------------
20,160,168 20,409,928
------------- -------------
MANUFACTURED HOMES-0.92%
$4,000,000 Green Tree Financial Corp., 7.65% Ser 1994-1
Class A5 4-15-2019......................... Aa2* 4,070,313 4,070,320
------------- -------------
MISCELLANEOUS-0.16%
683,207 Fifth Third Auto Grantor Trust, 6.70% Ser
1996-B Class B 3-15-2002................... A 682,784 687,258
------------- -------------
MULTI-FAMILY LOANS-1.67%
4,851,000 DLJ Mortgage Acceptance Corp., 8.50%
Multifamily Mtg Pass Thru Certificate Ser
1994-MF4 Class A2 4-18-2001................ A 4,928,725 5,002,555
1,500,000 DLJ Mortgage Acceptance Corp., 8.80%
Multifamily Mtg Pass Thru Certificate Ser
1993-MF12 Class B1 9-18-2003............... NR 1,473,750 1,572,105
1,016,621 Fund America Structured Transactions, L.P.,
Collateralized Note, 8.7625% Ser 1996-1
Class A Principal Only 1-1-2033 (e)(g)..... Baa3* 748,514 757,383
------------- -------------
7,150,989 7,332,043
------------- -------------
RAILROAD AND RAILROAD EQUIPMENT-0.21%
910,000 Railcar Leasing L.L.C., 7.125% Ser 1997-1
Class A2 1-15-2013 (e)..................... AAA 908,153 906,661
------------- -------------
</TABLE>
34
<PAGE>
ASSET BACKED SECURITIES-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- ------------- ------------- -------------
<C> <S> <C> <C> <C>
WHOLE LOAN RESIDENTIAL-0.80%
$1,928,591 Blackrock Capital Funding L.L.C., 7.75%
97-R1-Cl Class A1 3-1-2027 (e)............. Aaa* $ 1,946,334 $ 1,961,136
1,600,000 Residential Asset Securitization Trust,
7.125% Ser 1997-A5 Class A7 7-25-2027...... AAA 1,565,528 1,589,000
------------- -------------
3,511,862 3,550,136
------------- -------------
TOTAL ASSET BACKED SECURITIES................ $ 38,980,128 $ 39,464,628
------------- -------------
------------- -------------
</TABLE>
CORPORATE BONDS-INVESTMENT GRADE-8.66%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- ------------- ------------- -------------
<C> <S> <C> <C> <C>
AEROSPACE AND EQUIPMENT-0.35%
$1,500,000 Lockheed Martin Corp., 7.65% Deb 5-1-2016.... BBB+ $ 1,508,665 $ 1,518,873
------------- -------------
AIRLINES-0.35%
1,500,000 Federal Express Corp., 7.50% 1997-A Pass Thru
Certificate 1-15-2018...................... AAA 1,500,000 1,530,604
------------- -------------
BANKS-1.07%
1,750,000 Bank Austria AG, 7.25% Sub Note 2-15-2017
(f)........................................ AAA 1,746,704 1,726,830
500,000 Citicorp Capital II, 8.015% Bond 2-15-2027... A- 500,000 501,906
1,000,000 Republic NY Capital I, 7.75% 11-15-2026...... A+ 975,069 980,581
1,500,000 St. Paul Bancorp, Inc., 7.125% Sr Note
2-15-2004.................................. BBB- 1,493,355 1,478,712
------------- -------------
4,715,128 4,688,029
------------- -------------
BROKERAGE AND INVESTMENT-1.35%
1,500,000 Bear Stearns Capital Trust I, 7.00% Variable
Rate Bond 1-15-2027........................ BBB 1,499,134 1,483,966
2,500,000 Lehman Brothers Holdings, 7.375% Sr Note
5-15-2004.................................. A 2,490,294 2,518,830
2,000,000 Salomon, Inc., 6.75% Sr Note 2-15-2003....... BBB 1,996,607 1,959,930
------------- -------------
5,986,035 5,962,726
------------- -------------
BUILDING MATERIALS-0.23%
1,000,000 Owens-Corning, 7.00% Medium Term Note
5-15-2000.................................. BBB- 1,000,000 1,004,466
------------- -------------
CHEMICALS-0.33%
1,500,000 Lyondell Petrochemical, 7.55% Deb
2-15-2026.................................. BBB- 1,413,203 1,434,010
------------- -------------
CONSUMER FINANCE-0.28%
1,250,000 Beneficial Corp., 6.33% Medium Term Note
12-18-2000................................. A 1,238,758 1,235,689
------------- -------------
ENERGY-0.35%
750,000 NGC Corp. Capital Trust, 8.316% 6-1-2027
(f)........................................ BBB 750,000 774,087
750,000 NGC Corp., 7.625% Deb 10-15-2026............. BBB+ 746,438 745,228
------------- -------------
1,496,438 1,519,315
------------- -------------
FINANCE COMPANIES-0.28%
1,250,000 Homeside Lending, Inc., 6.875% Medium Term
Note 6-30-2002............................. BBB 1,249,588 1,245,050
------------- -------------
FOREIGN-GOVERNMENT-0.28%
1,250,000 Poland (Republic of), 7.125% Yankee Bond
7-1-2004................................... BBB- 1,243,637 1,245,600
------------- -------------
FOREIGN-GOVERNMENT AGENCIES-0.35%
1,500,000 Quebec (Province of), 7.50% Yankee Bond
7-15-2002.................................. A+ 1,547,331 1,539,255
------------- -------------
MEDIA-0.65%
1,235,000 News America Holdings, 7.50% Sr Note
3-1-2000................................... BBB 1,250,998 1,258,847
1,500,000 News America Holdings, 8.875% Deb
4-26-2023.................................. BBB 1,558,716 1,607,481
------------- -------------
2,809,714 2,866,328
------------- -------------
MISCELLANEOUS-0.06%
250,000 New York (City of), 10.00% General Obligation
Taxable Bond Fiscal 1991 Ser D 8-1-2005.... BBB+ 237,441 281,332
------------- -------------
RAILROAD AND RAILROAD EQUIPMENT-0.39%
1,650,000 CSX Corp., 7.90% Deb 5-1-2017 (f)............ BBB 1,649,046 1,708,039
------------- -------------
</TABLE>
35
<PAGE>
FORTIS SERIES FUND, INC.
ASSET ALLOCATION SERIES (CONTINUED)
Schedule of Investments
June 30, 1997 (Unaudited)
CORPORATE BONDS-INVESTMENT GRADE-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- ------------- ------------- -------------
<C> <S> <C> <C> <C>
REAL ESTATE-INVESTMENT TRUST-0.35%
$1,500,000 Meditrust, 7.82% Note 9-10-2026.............. BBB- $ 1,570,282 $ 1,556,869
------------- -------------
SUPRANATIONAL-0.34%
1,500,000 Corp Andina De Fomento, 7.10% Yankee Bond
2-1-2003................................... BBB+ 1,499,173 1,503,970
------------- -------------
TELECOMMUNICATIONS-0.80%
3,500,000 360 Communications Co., 7.50% Sr Note
3-1-2006................................... BBB- 3,492,671 3,513,209
------------- -------------
TELEPHONE SERVICES-0.23%
1,000,000 GTE Corp., 7.51% Note 4-1-2009............... A 991,986 1,029,680
------------- -------------
UTILITIES-ELECTRIC-0.34%
1,500,000 Texas Utilities Electric Capital V, 8.125%
1-30-2037.................................. BBB 1,500,000 1,486,760
------------- -------------
NATURAL GAS TRANSMISSIONS-0.28%
1,250,000 Tennessee Gas Pipeline, 7.50% Bond
4-1-2017................................... BBB 1,230,147 1,251,889
------------- -------------
TOTAL CORPORATE BONDS - INVESTMENT GRADE..... $ 37,879,243 $ 38,121,693
------------- -------------
------------- -------------
</TABLE>
CORPORATE BONDS-NON-INVESTMENT GRADE-5.38%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- ------------- ------------- -------------
<C> <S> <C> <C> <C>
BROADCASTING-0.23%
$1,000,000 Sinclair Broadcasting Group, Inc., 10.00% Sr
Sub Note 9-30-2005......................... B $ 1,000,000 $ 1,030,000
------------- -------------
CABLE TELEVISION-0.79%
1,000,000 Australis Media Ltd., 16.20% Sr Sub Yankee
Note 5-15-2003 (Zero coupon through
5-15-2000, thereafter 15.75% (and
warrants)) (d)............................. NR 710,146 730,000
1,000,000 Cablevision Systems Corp., 10.50% Sr Sub Deb
5-15-2016.................................. B 1,014,864 1,100,000
1,000,000 Telewest Communications plc, 9.625% Yankee
Deb 10-1-2006.............................. B+ 1,031,556 1,045,000
1,000,000 Wireless One, Inc., 13.00% Sr Note
10-15-2003................................. B- 978,715 620,000
------------- -------------
3,735,281 3,495,000
------------- -------------
COMPUTER-HARDWARE-0.25%
1,000,000 Unisys Corp., 11.75% Sr Note 10-15-2004...... B+ 1,087,388 1,080,000
------------- -------------
ENERGY-0.39%
1,750,000 Energy Corp. of America, 9.50% Sr Sub Note
5-15-2007 (e).............................. B 1,750,000 1,732,500
------------- -------------
FOOD-MISCELLANEOUS-0.37%
1,500,000 Envirodyne Industries, Inc., 12.00% First
Priority Sr Secured Note 6-15-2000......... B+ 1,498,125 1,638,750
------------- -------------
HEALTH CARE SERVICES-0.25%
1,000,000 Tenet Healthcare Corp., 10.125% Sr Sub Note
3-1-2005................................... B+ 1,063,683 1,095,000
------------- -------------
HOTEL AND MOTEL-0.24%
1,000,000 HMH Properties, Inc., 9.50% Sr Note
5-15-2005.................................. BB- 1,011,815 1,040,000
------------- -------------
HOUSING-0.36%
1,500,000 MDC Holdings, Inc., 11.125% Note
12-15-2003................................. B+ 1,593,485 1,597,500
------------- -------------
LEISURE TIME-AMUSEMENTS-0.46%
1,000,000 Station Casinos, Inc., 10.125% Sr Sub Note
3-15-2006.................................. B+ 1,008,712 1,010,000
1,000,000 Trump Atlantic City Associates Funding, Inc.,
11.25% First Mtg Bond 5-1-2006............. BB- 982,513 975,000
------------- -------------
1,991,225 1,985,000
------------- -------------
RETAIL-MISCELLANEOUS-0.23%
1,000,000 Travelcenters of America, 10.25% Sr Sub Note
4-1-2007 (e)............................... B 1,000,000 1,025,000
------------- -------------
STEEL AND IRON-0.49%
1,000,000 AK Steel Corp., 10.75% Sr Note 4-1-2004...... BB- 1,091,474 1,076,250
1,000,000 Weirton Steel Corp., 11.375% Sr Note
7-1-2004................................... B 1,034,342 1,065,000
------------- -------------
2,125,816 2,141,250
------------- -------------
</TABLE>
36
<PAGE>
CORPORATE BONDS-NON-INVESTMENT GRADE-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- ------------- ------------- -------------
<C> <S> <C> <C> <C>
TELECOMMUNICATIONS-1.08%
$1,000,000 Dobson Communications Corp., 11.75% Sr Note
4-15-2007.................................. NR $ 952,853 $ 970,000
1,000,000 Globalstar LP/Capital, 11.375% Sr Note
2-15-2004 (e).............................. B 1,037,305 990,000
250,000 Omnipoint Corp., 11.625% Sr Note 8-15-2006... CCC+ 254,274 240,000
1,000,000 Paging Network, Inc., 10.125% Sr Sub Note
8-1-2007................................... B 1,055,969 970,000
500,000 Phonetel Technologies, 12.00% Sr Note
12-15-2006................................. B- 501,241 505,000
1,500,000 Teleport Communications, 11.125% Sr Disc Note
7-1-2007 (Zero coupon until 7-1-2001,
thereafter 11.125%) (d).................... B 984,860 1,078,125
------------- -------------
4,786,502 4,753,125
------------- -------------
TEXTILE MANUFACTURING-0.24%
1,000,000 Pillowtex Corp., 10.00% Sr Sub Note
11-15-2006................................. B+ 1,054,022 1,052,500
------------- -------------
TOTAL CORPORATE BONDS - NON-INVESTMENT
GRADE...................................... $ 23,697,342 $ 23,665,625
------------- -------------
------------- -------------
</TABLE>
U.S. GOVERNMENT SECURITIES-19.72%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Cost (b) Value (c)
------------ ------------- -------------
<C> <S> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION-4.57%
MORTGAGE BACKED SECURITIES:
$ 6,947,268 6.50% 2010-2012.............................. $ 6,867,782 $ 6,805,090
7,489,846 7.00% 2011-2025.............................. 7,367,172 7,371,784
2,328,320 7.50% 2022-2026.............................. 2,386,510 2,333,417
1,519,213 8.00% 2025................................... 1,542,239 1,551,970
56,501 9.00% 2021................................... 56,377 59,503
------------- -------------
18,220,080 18,121,764
------------- -------------
NOTES:
2,000,000 6.85% 2000................................... 2,000,000 2,014,418
------------- -------------
TOTAL FEDERAL NATIONAL MORTGAGE
ASSOCIATION................................ 20,220,080 20,136,182
------------- -------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION-1.77%
MORTGAGE BACKED SECURITIES:
3,149,643 7.50% 2023................................... 3,001,019 3,157,523
3,997,120 9.00% 2022-2023.............................. 4,127,026 4,220,706
323,567 9.125% 2018 Fleet Mortgage Securities Ser
1989-3 Class D 2018 (GNMA Backed).......... 331,252 326,350
82,522 9.50% 2020................................... 82,316 88,943
------------- -------------
TOTAL GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION................................ 7,541,613 7,793,522
------------- -------------
U.S. TREASURY SECURITIES-13.38%
BONDS:
1,130,000 6.50% 2026................................... 1,088,158 1,083,034
800,000 8.875% 2019.................................. 968,382 978,750
------------- -------------
2,056,540 2,061,784
------------- -------------
NOTES:
6,410,000 6.00% 1998................................... 6,423,814 6,416,006
1,915,000 6.125% 2001.................................. 1,913,047 1,896,447
16,750,000 6.25% 1999-2007.............................. 16,700,320 16,660,760
8,235,000 6.375% 2000.................................. 8,231,937 8,265,881
3,550,000 6.50% 2005................................... 3,508,818 3,541,125
5,700,000 6.625% 2002.................................. 5,711,420 5,751,653
2,090,000 6.875% 2006.................................. 2,085,977 2,133,106
9,910,000 7.00% 2006................................... 10,235,518 10,194,913
</TABLE>
37
<PAGE>
FORTIS SERIES FUND, INC.
ASSET ALLOCATION SERIES (CONTINUED)
Schedule of Investments
June 30, 1997 (Unaudited)
U.S. GOVERNMENT SECURITIES-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Cost (b) Value (c)
------------ ------------- -------------
<C> <S> <C> <C>
$ 1,915,000 7.50% 1999................................... $ 1,965,891 $ 1,969,457
------------- -------------
56,776,742 56,829,348
------------- -------------
TOTAL U.S. TREASURY SECURITIES............... 58,833,282 58,891,132
------------- -------------
TOTAL U.S. GOVERNMENT SECURITIES............. $ 86,594,975 $ 86,820,836
------------- -------------
------------- -------------
TOTAL LONG-TERM INVESTMENTS.................. $ 347,586,838 $ 429,587,745
------------- -------------
------------- -------------
</TABLE>
SHORT-TERM INVESTMENTS-1.17%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
----------- -------------
<C> <S> <C>
BANKS-0.07%
$ 315,000 First Trust Money Market Variable Rate Time
Deposit, Current rate -- 5.44%............. $ 315,000
-------------
DIVERSIFIED FINANCE-1.10%
4,832,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.42%...................... 4,832,000
-------------
TOTAL SHORT-TERM INVESTMENTS................. $ 5,147,000
-------------
-------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$352,733,838) (b).......................... $ 434,734,745
-------------
-------------
</TABLE>
(a) Presently non-income producing. For long-term debt securities, items
identified are in default as to payment of interest and/or principal.
(b) At June 30, 1997, the cost of securities for federal income tax purposes
was $352,733,838 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $86,111,903
Unrealized depreciation..................................... (4,110,996)
- -------------------------------------------------------------------------
Net unrealized appreciation................................. $82,000,907
- -------------------------------------------------------------------------
</TABLE>
(c) See Note 1 of accompanying Notes to Financial Statements regarding
valuations 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 private placement memorandums, exempt
from registration under section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program of 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 6/30/97
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
April 2, 1997 1,928,591 Blackrock Capital Funding L.L.C., 7.75% 97-R1-Cl Class A1 1,946,334
3-1-2027
May 17, 1996 1,858,012 DLJ Mortgage Acceptance Corp., 7.28% Ser 1996-CF1 Class A1 1,871,819
3-13-2028
May 20, 1997 1,750,000 Energy Corp. of America, 9.50% Sr Sub Note 5-15-2007 1,750,000
May 6, 1997 & March 29, 1996 1,016,621 Fund America Structured Transactions, L.P. Collateralized 748,514
Note, 8.7625% Ser 1996-1 Class A Principal Only 1-1-2033
June 10, 1997 1,000,000 Globalstar LP/Capital, 11.375% Sr Note 2-15-2004 1,037,305
April 26, 1996 1,000 Hyperion Telecom (Warrants) 4,022
June 11, 1997 600,000 Morgan Stanley Capital I, Inc., 7.3773% Ser 1996 WF1 Class 560,964
A3 8-15-2006
March 4, 1997 600,000 Railcar Leasing L.L.C., 7.125% Ser 1997-1 Class A2 908,153
1-15-2013
March 24, 1997 600,000 Travelcenters of America, 10.25% Sr Sub Note 4-1-2007 1,000,000
The value of these securities at June 30, 1997, is $9,849,700 which represents 2.24% of total net assets.
</TABLE>
(f) Securities sold within the terms of private placement memorandums, exempt
from registration under section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program of other
"accredited investors". Pursuant to guidelines adopted by The Board of
Directors, these issues are deemed to be liquid. The value of these
securities at June 30, 1997, is $4,208,956 which represents .96% of total
net assets.
(g) The interest rate disclosed for principal only strips represent effective
yields at June 30, 1997, 1996, based upon future cash flows. This
investment has been identified by portfolio management as an illiquid
security. The aggregate value of this security at June 30, 1997, is
$757,383 which represents .17% of total net assets.
(h) The cost of securities purchased on a when-issued at June 30, 1997, is
$1,741,580.
(i) 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 7.50% of net assets as of June 30, 1997.
* Moody's Rating
38
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL ASSET ALLOCATION SERIES
Schedule of Investments
June 30,1997 (Unaudited)
COMMON STOCKS-57.64%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b)(e) Value (c)(e)
--------- ------------ ------------
<C> <S> <C> <C>
AUSTRALIA-0.79%
34,807 Coles Myer Ltd. -- RETAIL-MISCELLANEOUS...... $ 122,081 $ 179,660
47,300 CSR Limited -- BUILDING MATERIALS............ 167,647 181,779
------------ ------------
289,728 361,439
------------ ------------
BELGIUM-0.58%
5,100 Delhaize-Le Lion
S.A. -- RETAIL-MISCELLANEOUS............... 255,685 268,122
------------ ------------
BERMUDA-0.47%
10,300 Terra Nova (Burmuda) Holdings -- INSURANCE... 202,333 216,300
------------ ------------
CANADA-0.87%
5,300 Potash Corporation of
Saskatchewan -- CHEMICALS.................. 430,856 399,356
------------ ------------
FRANCE-2.34%
4,540 Banque Nationale de Paris -- BANKS........... 170,985 187,294
341 Bongrain S.A. -- FOOD........................ 169,170 133,532
1,683 Elf Aquitaine -- OIL-CRUDE PETROLEUM AND
GAS........................................ 119,270 181,747
2,100 PSA Peugeot Citroen S.A. -- AUTOMOBILE
MANUFACTURERS.............................. 280,723 203,170
2,850 Scor S.A. -- INSURANCE....................... 99,467 114,856
4,050 Valeo S.A. -- AUTOMOBILE AND MOTOR VEHICLE
PARTS...................................... 177,328 251,791
------------ ------------
1,016,943 1,072,390
------------ ------------
GERMANY-2.63%
5,000 Basf AG -- CHEMICALS......................... 110,339 184,645
6,550 Bayer AG -- CHEMICALS........................ 182,990 252,598
660 Karstadt AG -- RETAIL-DEPARTMENT STORES...... 255,306 238,618
125 Mannesmann AG -- MACHINERY................... 34,331 55,881
4,400 Veba AG -- UTILITIES-ELECTRIC................ 209,002 248,718
250 Viag AG -- ELECTRIC PRODUCTS................. 102,693 114,273
150 Volkswagen AG -- AUTOMOBILE MANUFACTURERS.... 43,858 113,800
------------ ------------
938,519 1,208,533
------------ ------------
HONG KONG-0.35%
42,000 Jardine Strategic Holdings
Ltd. -- MISCELLANEOUS...................... 125,664 158,760
------------ ------------
IRELAND-2.43%
23,700 Clondalkin Group Units plc -- CONTAINERS AND
PACKAGING.................................. 205,365 228,826
46,969 Green Property plc -- REAL ESTATE............ 129,763 253,672
123,077 Irish Life plc -- INSURANCE.................. 627,099 631,296
------------ ------------
962,227 1,113,794
------------ ------------
ITALY-0.53%
146,000 Olivetti Group, includes Ing C. Olivetti & C.
S.p.A. -- OFFICE EQUIPMENT AND SUPPLIES.... 55,941 41,316
37,100 Stet Societa' Finanziaria Telefonica
S.p.A. -- TELECOMMUNICATIONS............... 81,159 128,645
38,000 Telecom Italia
S.p.A. -- UTILITIES-TELEPHONE.............. 47,368 75,151
------------ ------------
184,468 245,112
------------ ------------
JAPAN-6.40%
4,000 Daicel Chemical Industries
Ltd. -- CHEMICALS.......................... 21,751 15,485
40 East Japan Railway Co. -- TRANSPORTATION..... 195,497 205,540
18,000 Fuji Photo Film -- PHOTOGRAPHIC.............. 531,716 725,159
6,000 Hitachi Ltd. -- ELECTRONIC-CONTROLS AND
EQUIPMENT.................................. 56,981 67,115
22,000 Kao Corp. -- HOUSEHOLD PRODUCTS.............. 300,249 305,689
13,000 Matsushita Electric Industrial
Co. -- ELECTRIC PRODUCTS................... 202,800 262,431
54,000 Nichido Fire & Marine
Insurance -- INSURANCE..................... 419,179 394,512
20 Nippon Telegraph & Telephone
Corp. -- TELEPHONE SERVICES................ 142,089 192,257
60,000 NKK Corp. -- STEEL AND IRON.................. 125,664 128,987
2,000 Sony Corp. -- ELECTRONIC-CONTROLS AND
EQUIPMENT.................................. 114,488 174,605
10,000 Sumitomo Rubber Industries -- AUTOMOBILE AND
MOTOR VEHICLE PARTS........................ 88,145 67,377
2,000 TDK Corp. -- ELECTRIC-COMPONENTS AND PARTS... 105,885 146,989
4,000 Toyo Seikan Kaisha -- CONTAINERS AND
PACKAGING.................................. 113,255 88,788
</TABLE>
39
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL ASSET ALLOCATION SERIES (CONTINUED)
Schedule of Investments
June 30,1997 (Unaudited)
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b)(e) Value (c)(e)
--------- ------------ ------------
<C> <S> <C> <C>
6,000 Yamanouchi Pharmaceutical -- DRUGS........... $ 126,213 $ 161,496
------------ ------------
2,543,912 2,936,430
------------ ------------
NETHERLANDS-2.95%
13,872 ABN-AMRO Holding NV -- BANKS................. 127,746 259,128
1,300 Akzo Nobel NV -- CHEMICALS................... 142,361 178,480
205 Hollandsche Beton Groep NV -- CONSTRUCTION... 31,456 46,842
10,722 ING Groep NV -- FINANCE SERVICES............. 316,828 495,243
5,200 Philips Electronics NV -- ELECTRIC
PRODUCTS................................... 169,562 373,150
------------ ------------
787,953 1,352,843
------------ ------------
SPAIN-0.92%
12,700 Iberdrola S.A. -- UTILITIES-ELECTRIC......... 76,653 160,617
9,000 Telefonica de Espana -- TELECOMMUNICATIONS... 113,414 260,692
------------ ------------
190,067 421,309
------------ ------------
SWEDEN-0.99%
6,600 Skandia Forsakrings AB -- INSURANCE.......... 145,049 243,263
10,000 Svenska Cellulosa B Free -- BANKS............ 135,894 212,742
------------ ------------
280,943 456,005
------------ ------------
SWITZERLAND-3.35%
145 Ascom Holding AG -- TELECOMMUNICATIONS....... 145,129 203,001
65 Bobst S.A. -- MACHINERY...................... 79,455 110,574
430 Forbo Holding AG -- HOUSEHOLD PRODUCTS....... 182,958 185,822
290 Holderbank Financiere Glaris AG -- BUILDING
MATERIALS.................................. 227,978 274,315
110 Magazine Zum Globus -- RETAIL-DEPARTMENT
STORES..................................... 64,038 67,757
280 Nestle S.A. Registered -- FOOD............... 292,398 369,915
110 SIG Schweizerische Industrie-Gesellschaft
Holding AG -- MACHINERY.................... 107,975 163,734
190 Sulzer AG -- MISCELLANEOUS................... 119,878 162,911
------------ ------------
1,219,809 1,538,029
------------ ------------
UNITED KINGDOM-6.68%
9,900 Bass plc -- BEVERAGE......................... 126,993 120,773
11,200 Burmah Castrol plc -- OIL-CRUDE PETROLEUM AND
GAS........................................ 184,880 189,664
9,682 English China Clays plc -- MINERALS.......... 57,354 33,275
36,000 Imperial Tobacco Group plc -- TOBACCO........ 226,699 231,571
50,000 Mattews (Bernard) plc -- FOOD................ 74,479 95,281
20,000 Peninsular & Orient Steam
Navigation -- TRANSPORTATION............... 209,195 199,716
23,000 Racal Electronics plc -- ELECTRICAL
EQUIPMENT.................................. 87,490 92,635
11,600 Railtrack Group plc -- RAILROAD AND RAILROAD
EQUIPMENT.................................. 71,222 120,758
32,867 Reckitt & Colman plc -- HOUSEHOLD PRODUCTS... 368,722 489,836
38,133 Salvesen Christian plc -- MISCELLANEOUS...... 181,162 178,971
16,450 Scottish Hydro-Electric
plc -- ELECTRIC-COMPONENTS AND PARTS....... 97,155 114,028
15,969 Southern Electric -- UTILITIES-ELECTRIC...... 86,853 117,870
22,787 Tate & Lyle plc -- FOOD...................... 167,692 169,333
21,600 Unilever plc -- CONSUMER GOODS............... 428,321 618,860
71,700 WPP Group plc -- ADVERTISING-PUBLIC
RELATIONS.................................. 260,631 294,149
------------ ------------
2,628,848 3,066,720
------------ ------------
UNITED STATES-25.36%
8,600 Albertson's, Inc. -- RETAIL-GROCERY.......... 299,495 313,900
4,200 Aluminum Company of
America -- METALS-FABRICATING.............. 211,484 316,575
1,300 AMR Corp. (a) -- AIRLINES.................... 75,878 120,250
7,747 Ascent Entertainment
Group -- TELECOMMUNICATIONS................ 50,612 70,696
4,050 AT & T Corp. -- UTILITIES-TELEPHONE.......... 161,528 142,003
3,000 Beazer Homes USA, Inc. (a) -- MANUFACTURED
HOMES...................................... 43,950 48,000
5,800 Borg-Warner Automotive, Inc. -- AUTOMOBILE
AND MOTOR VEHICLE PARTS.................... 237,816 313,563
8,800 Browning-Ferris Industries, Inc. -- WASTE
DISPOSAL................................... 235,764 292,600
19,000 Cadiz Land Co., Inc. (a) -- LAND
DEVELOPMENT................................ 108,321 99,750
15,850 Comsat Corp. -- TELECOMMUNICATIONS........... 256,703 377,428
</TABLE>
40
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b)(e) Value (c)(e)
--------- ------------ ------------
<C> <S> <C> <C>
34,250 Data General Corp.
(a) -- COMPUTER-SOFTWARE................... $ 400,876 $ 890,500
1,850 Echlin, Inc. -- AUTOMOBILE AND MOTOR VEHICLE
PARTS...................................... 62,856 66,600
18,300 Egghead, Inc. (a) -- RETAIL-SPECIALTY........ 163,751 72,056
9,100 Enhance Financial Services Group,
Inc. -- INSURANCE.......................... 203,568 399,263
3,900 Equitable Companies, Inc. -- INSURANCE....... 81,221 129,675
6,000 Finova Group, Inc. -- FINANCE SERVICES....... 241,239 459,000
13,000 GenRad, Inc. (a) -- ELECTRONIC-CONTROLS AND
EQUIPMENT.................................. 73,818 294,125
2,850 Georgia Pacific Corp. -- FOREST PRODUCTS..... 205,129 243,319
15,200 Greenfield Industries,
Inc. -- MACHINERY-TOOLS.................... 355,650 410,400
4,300 Greenpoint Financial Corp. -- BANKS.......... 239,046 286,219
12,950 Houghton Mifflin Co. -- PUBLISHING........... 643,633 864,413
7,150 IBP, Inc. -- FOOD............................ 166,581 166,238
39,300 Intelidata Technologies Corp.
(a) -- TELECOMMUNICATIONS.................. 311,431 189,131
3,495 Limited (The), Inc. -- RETAIL-CLOTHING....... 60,564 70,774
5,300 Lukens, Inc. -- STEEL AND IRON............... 152,922 99,706
2,550 MBIA, Inc. -- INSURANCE...................... 177,327 287,672
7,600 MCI Communications
Corp. -- UTILITIES-TELEPHONE............... 183,214 290,938
8,000 Mellon Bank Corp. -- BANKS................... 161,649 361,000
253 NCR Corp. -- CAPITAL SPENDING................ 8,149 7,531
7,400 Penncorp Financial Group, Inc. -- FINANCE
SERVICES................................... 244,103 284,900
1,850 Pennzoil Co. -- OIL-CRUDE PETROLEUM AND
GAS........................................ 90,219 141,988
14,500 Pharmacia and UpJohn, Inc. -- DRUGS.......... 491,529 503,875
18,000 Philip Morris Companies, Inc. -- TOBACCO..... 663,418 798,750
6,000 Polaroid Corp. -- PHOTOGRAPHIC............... 239,264 333,000
3,450 Tandy Corp. -- OFFICE EQUIPMENT AND
SUPPLIES................................... 136,061 193,200
3,600 Tecumseh Products Co. Class A -- MACHINERY... 193,800 215,550
8,300 Toys 'R' Us, Inc.
(a) -- RETAIL-MISCELLANEOUS................ 211,660 290,500
29,400 UST Corp. -- BANKS........................... 440,001 657,825
15,500 Waban, Inc. (a) -- RETAIL-MISCELLANEOUS...... 342,116 498,906
15,200 WorldCorp, Inc. (a) -- TRANSPORTATION........ 138,291 38,950
------------ ------------
8,764,637 11,640,769
------------ ------------
TOTAL COMMON STOCKS.......................... $20,822,592 $26,455,911
------------ ------------
------------ ------------
</TABLE>
PREFERRED STOCKS-0.30%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b)(e) Value (c)(e)
----- ------------ ------------
<C> <S> <C> <C>
GERMANY-0.30%
250 Volkswagen AG -- AUTOMOBILE MANUFACTURERS.... $ 53,169 $ 139,883
------------ ------------
</TABLE>
LONG-TERM FOREIGN BONDS-INVESTMENT GRADE-22.30%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
Principal & Poor's Market
Amount (e) Rating Cost (b)(e) Value (c)(e)
--------------- ------------- ------------ ------------
<C> <S> <C> <C> <C>
AUSTRALIA-0.72%
$ 450,000 Australian Government (Australian Dollar),
6.75% 11-15-2006........................... AAA $ 330,994 $ 331,809
------------ ------------
CANADA-1.07%
450,000 Canadian Government (Canadian Dollar), 7.50%
3-1-2001................................... AAA 350,843 347,524
150,000 Canadian Government (Canadian Dollar), 9.75%
6-1-2021................................... Aa1* 132,953 145,188
------------ ------------
483,796 492,712
------------ ------------
</TABLE>
41
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL ASSET ALLOCATION SERIES (CONTINUED)
Schedule of Investments
June 30,1997 (Unaudited)
LONG-TERM FOREIGN BONDS-INVESTMENT GRADE-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount (e) Rating Cost (b)(e) Value (c)(e)
--------------- ------------- ------------ ------------
<C> <S> <C> <C> <C>
DENMARK-1.00%
$ 2,200,000 Kingdom of Denmark (Danish Krone), 7.00%
12-15-2004................................. AAA $ 367,094 $ 355,512
600,000 Kingdom of Denmark (Danish Krone), 8.00%
11-15-2001................................. AAA 106,947 101,600
------------ ------------
474,041 457,112
------------ ------------
GERMANY-6.08%
400,000 German Government (German Deutschemark),
6.25% 1-4-2024............................. Aaa* 242,087 223,330
1,750,000 German Government (German Deutschemark),
6.50% 7-15-2003............................ Aaa* 1,135,484 1,082,619
1,300,000 German Government (German Deutschemark),
8.50% 8-21-2000............................ Aaa* 942,395 842,876
980,000 German Unity Fund (German Deutschemark),
8.00% 1-21-2002............................ NR 719,871 641,079
------------ ------------
3,039,837 2,789,904
------------ ------------
IRELAND-0.36%
100,000 Irish Government (Irish Pound), 8.00%
8-18-2006.................................. NR 168,053 165,419
------------ ------------
ITALY-1.95%
250,000,000 Italian Government (Italian Lira), 10.00%
8-1-2003................................... AAA 162,691 171,466
1,000,000,000 Italian Government (Italian Lira), 10.50%
7-15-2000.................................. AAA 691,053 657,067
100,000,000 Italian Government BTP (Italian Lira), 9.50%
Bond 2-1-2006.............................. AAA 70,112 68,645
------------ ------------
923,856 897,178
------------ ------------
JAPAN-4.28%
65,000,000 European Investment Bank (Japanese Yen),
3.00% 9-20-2006............................ AAA 571,730 592,529
57,000,000 Int'l Bank Reconstruction & Development
(Japanese Yen), 4.75% 12-20-2004........... AAA 588,952 582,490
20,000,000 Int'l Bank Reconstruction & Development
(Japanese Yen), 5.25% 03-20-2002........... AAA 209,617 202,416
56,000,000 Japan Development Bank (Japanese Yen), 6.50%
9-20-2001.................................. Aaa* 624,183 585,118
------------ ------------
1,994,482 1,962,553
------------ ------------
SWEDEN-4.18%
1,400,000 Swedish Government (Swedish Krona), 10.25%
5-5-2000................................... Aa1* 200,298 204,817
5,200,000 Swedish Government (Swedish Krona), 13.00%
6-15-2001.................................. Aa1* 885,678 848,012
4,500,000 Swedish Government (Swedish Krona), 6.00%
2-9-2005................................... Aa1* 586,652 570,061
300,000 Swedish Government (US Dollar), 4.50%
3-24-1999.................................. AA+ 290,175 293,813
------------ ------------
1,962,803 1,916,703
------------ ------------
UNITED KINGDOM-2.66%
150,000 United Kingdom Conversion Stock 9.00%
3-3-2000................................... Aaa* 255,947 261,113
370,000 United Kingdom Treasury (British Pound),
8.50% 7-16-2007............................ Aaa* 651,340 675,254
150,000 United Kingdom Treasury (British pound),
9.50% 4-18-2005............................ Aaa* 281,829 284,518
------------ ------------
1,189,116 1,220,885
------------ ------------
TOTAL LONG-TERM FOREIGN BONDS - INVESTMENT
GRADE...................................... $10,566,978 $10,234,275
------------ ------------
------------ ------------
</TABLE>
U.S. GOVERNMENT SECURITIES-14.55%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount (e) Cost (b)(e) Value (c)(e)
----------- ------------ ------------
<C> <S> <C> <C>
U.S. TREASURY SECURITIES-14.55%
NOTES:
$1,050,000 5.625% 2001.................................. $ 1,032,942 $ 1,027,031
2,900,000 5.75% 2003................................... 2,771,191 2,800,313
1,050,000 6.25% 2000................................... 1,056,224 1,050,656
900,000 7.25% 2004................................... 941,772 937,968
800,000 7.875% 2004.................................. 857,404 863,000
------------ ------------
TOTAL U.S. GOVERNMENT SECURITIES............. 6,659,533 6,678,968
------------ ------------
TOTAL LONG-TERM DEBT SECURITIES.............. 17,226,511 16,913,243
------------ ------------
------------ ------------
TOTAL LONG-TERM INVESTMENTS.................. $38,102,272 $43,509,037
------------ ------------
------------ ------------
</TABLE>
42
<PAGE>
SHORT-TERM INVESTMENTS-3.88%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount (e) Value (c)(e)
----------- ------------
<C> <S> <C>
BANKS-3.88%
$1,779,081 First Trust Money Market Variable Rate Time
Deposit, Current rate -- 5.44%............. $ 1,779,081
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$39,881,353) (b)........................... $45,288,118
------------
------------
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 1997, the cost of securities for federal income tax purposes
was $39,881,353 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 6,527,049
Unrealized depreciation..................................... (1,120,284)
- -------------------------------------------------------------------------
Net unrealized appreciation................................. $ 5,406,765
- -------------------------------------------------------------------------
</TABLE>
(c) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets.
(e) Cost and market value are stated in U.S. dollars; principal amount is
stated in the currency indicated.
* Moody's Rating
43
<PAGE>
FORTIS SERIES FUND, INC.
VALUE SERIES
Schedule of Investments
June 30, 1997 (Unaudited)
COMMON STOCKS-85.65%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
ADVERTISING-PUBLIC RELATIONS-0.52%
2,700 Interpublic Group of Companies, Inc.......... $ 143,708 $ 165,544
------------ ------------
AEROSPACE AND EQUIPMENT-0.83%
8,600 Fruit of the Loom, Inc., Class A (a)......... 311,137 266,600
------------ ------------
BANKS-6.60%
12,900 Bank of New York Co., Inc.................... 424,905 561,150
5,400 Chase Manhattan Corp......................... 492,935 524,137
5,300 Citicorp..................................... 557,362 638,981
4,600 First Bank System, Inc....................... 344,216 392,725
------------ ------------
1,819,418 2,116,993
------------ ------------
BROADCASTING-1.41%
14,900 Comcast Corp., Special Class A............... 245,487 318,487
4,500 Viacom, Inc. Class B (a)..................... 152,455 135,000
------------ ------------
397,942 453,487
------------ ------------
BUSINESS SERVICES AND SUPPLIES-3.09%
16,800 Dun & Bradstreet Corp........................ 417,209 441,000
6,800 First Data Corp.............................. 224,297 298,775
9,200 Sabre Group Holdings, Inc. (a)............... 250,591 249,550
------------ ------------
892,097 989,325
------------ ------------
CHEMICALS-0.47%
4,300 IMC Global, Inc.............................. 149,484 150,500
------------ ------------
CHEMICALS-SPECIALTY-2.82%
10,300 Cabot Corp................................... 254,630 292,262
6,900 RPM, Inc..................................... 122,550 126,787
13,800 Sigma-Aldrich Corp........................... 398,600 483,862
------------ ------------
775,780 902,911
------------ ------------
COMPUTER-SOFTWARE-2.44%
5,200 Automatic Data Processing, Inc............... 219,940 244,400
9,600 Fiserv, Inc. (a)............................. 349,351 428,400
3,500 Sterling Software, Inc. (a).................. 109,990 109,375
------------ ------------
679,281 782,175
------------ ------------
CONTAINERS AND PACKAGING-1.47%
8,800 Crown Cork & Seal Company, Inc............... 475,879 470,250
------------ ------------
DRUGS-4.78%
10,100 Johnson & Johnson............................ 542,757 650,187
5,300 Pfizer, Inc.................................. 483,500 633,350
5,200 Schering-Plough Corp......................... 169,476 248,950
------------ ------------
1,195,733 1,532,487
------------ ------------
ELECTRICAL EQUIPMENT-2.04%
10,000 General Electric Co.......................... 515,625 653,750
------------ ------------
ELECTRONIC-CONTROLS AND EQUIPMENT-0.39%
2,500 Cooper Industries, Inc....................... 111,612 124,375
------------ ------------
ELECTRONIC-SEMICONDUCTOR AND CAPACITOR-2.59%
6,700 Avnet, Inc................................... 370,607 385,250
2,200 Intel Corp................................... 314,937 311,987
4,620 Vishay Intertechnology, Inc. (a)............. 94,457 133,691
------------ ------------
780,001 830,928
------------ ------------
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
FINANCE SERVICES-2.83%
8,700 Fannie Mae................................... $ 357,874 $ 379,538
6,900 Finova Group, Inc............................ 467,367 527,850
------------ ------------
825,241 907,388
------------ ------------
FOOD-6.89%
17,500 Archer-Daniels-Midland Co.................... 354,410 411,250
9,800 ConAgra, Inc................................. 485,109 628,425
14,600 Sara Lee Corp................................ 578,010 607,725
15,400 Sysco Corp................................... 506,037 562,100
------------ ------------
1,923,566 2,209,500
------------ ------------
HEALTH CARE SERVICES-2.15%
17,500 Columbia/HCA Healthcare Corp................. 655,333 687,969
------------ ------------
HOUSEHOLD PRODUCTS-1.38%
4,100 Kimberly-Clark Corp.......................... 204,869 203,975
1,700 Procter & Gamble Co.......................... 194,513 240,125
------------ ------------
399,382 444,100
------------ ------------
MACHINERY-SPECIALTY-0.78%
3,200 Grainger (W.W.), Inc......................... 242,592 250,200
------------ ------------
MEDICAL SUPPLIES-3.20%
6,900 Abbott Laboratories.......................... 390,991 460,575
10,800 Baxter International, Inc.................... 468,146 564,300
------------ ------------
859,137 1,024,875
------------ ------------
METALS-MINING AND MISCELLANEOUS-0.89%
7,000 Cleveland-Cliffs, Inc........................ 284,829 285,250
------------ ------------
MISCELLANEOUS-0.86%
8,900 Sherwin-Williams Co.......................... 253,743 274,788
------------ ------------
NATURAL GAS TRANSMISSIONS-3.53%
7,200 Enron Corp................................... 301,466 293,850
10,700 Questar Corp................................. 404,841 432,013
9,300 Williams Companies, Inc...................... 348,966 406,875
------------ ------------
1,055,273 1,132,738
------------ ------------
OFFICE EQUIPMENT AND SUPPLIES-4.03%
4,800 International Business Machines Corp......... 304,843 432,900
6,900 Pitney Bowes, Inc............................ 364,782 479,550
4,800 Xerox Corp................................... 284,165 378,600
------------ ------------
953,790 1,291,050
------------ ------------
OIL-CRUDE PETROLEUM AND GAS-4.54%
10,300 Anadarko Petroleum Corp...................... 623,215 618,000
1,800 Exxon Corp................................... 85,906 110,700
6,600 Mobil Corp................................... 426,130 461,175
18,000 Santa Fe Energy Resources, Inc. (a).......... 258,640 264,375
------------ ------------
1,393,891 1,454,250
------------ ------------
OIL-REFINING-3.35%
9,400 Atlantic Richfield Co........................ 626,857 662,700
7,600 Royal Dutch Petroleum Co. NY Shares.......... 337,522 413,250
------------ ------------
964,379 1,075,950
------------ ------------
</TABLE>
44
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
PRECISION INSTRUMENTS-TEST, RESEARCH-1.31%
7,600 Emerson Electric Co.......................... $ 359,510 $ 418,475
------------ ------------
PRINTING-1.18%
23,700 Unisource Worldwide, Inc..................... 459,393 379,200
------------ ------------
PUBLISHING-1.28%
7,000 McGraw Hill Companies, Inc................... 349,023 411,688
------------ ------------
RAILROAD AND RAILROAD EQUIPMENT-1.29%
4,600 Burlington Northern Santa Fe Corp............ 376,343 413,425
------------ ------------
REAL ESTATE-INVESTMENT TRUST-1.76%
4,300 Cali Realty Corp............................. 138,155 146,200
4,000 Kimco Realty Corp............................ 126,780 127,000
5,800 Liberty Property Trust....................... 140,841 144,275
5,000 Public Storage, Inc.......................... 140,879 146,250
------------ ------------
546,655 563,725
------------ ------------
RECREATION EQUIPMENT-1.05%
18,900 International Game Technology................ 343,530 335,475
------------ ------------
RETAIL-DEPARTMENT STORES-0.79%
7,300 Federated Department Stores, Inc. (a)........ 238,260 253,675
------------ ------------
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
RETAIL-SPECIALTY-3.46%
25,300 AutoZone, Inc. (a)........................... $ 589,183 $ 596,131
13,800 Lowe's Companies, Inc........................ 482,730 512,325
------------ ------------
1,071,913 1,108,456
------------ ------------
TELECOMMUNICATIONS-3.07%
7,600 Ameritech Corp............................... 452,088 516,325
8,100 Nynex Corp................................... 391,202 466,763
------------ ------------
843,290 983,088
------------ ------------
TOBACCO-1.66%
12,000 Philip Morris Companies, Inc................. 479,519 532,500
------------ ------------
UTILITIES-TELEPHONE-3.93%
6,100 GTE Corp..................................... 255,865 267,638
7,800 SBC Communications, Inc...................... 404,692 482,625
9,700 Sprint Corp.................................. 403,040 510,463
------------ ------------
1,063,597 1,260,726
------------ ------------
UNIT INVESTMENT TRUST-0.99%
3,600 S & P 500 Depositary Receipt................. 322,523 317,925
------------ ------------
TOTAL COMMON STOCKS.......................... $ 24,512,409 $ 27,455,741
------------ ------------
------------ ------------
</TABLE>
PREFERRED STOCKS-1.52%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
PAPER-1.52%
14,100 James River Corp. of Virginia Conv. Ser P
Preferred.................................. $ 389,653 $ 486,450
------------ ------------
TOTAL EQUITY INVESTMENTS..................... $24,902,062 $27,942,191
------------ ------------
------------ ------------
</TABLE>
SHORT-TERM INVESTMENTS-11.31%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
----------- ------------
<C> <S> <C>
BANKS-4.36%
$1,399,000 First Trust Money Market Variable Rate Time
Deposit, Current rate -- 5.44%............. $ 1,399,000
------------
DIVERSIFIED FINANCE-3.52%
1,129,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.42%...................... 1,129,000
------------
U.S. GOVERNMENT AGENCY-3.43%
1,100,000 Federal Home Loan Mortgage Corporation,
5.49%, 7-7-1997............................ 1,098,845
------------
TOTAL SHORT-TERM INVESTMENTS................. $ 3,626,845
------------
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$28,528,907) (b)........................... $31,569,036
------------
------------
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 1997, the cost of securities for federal income tax purposes
was $28,555,232 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 3,297,104
Unrealized depreciation..................................... (283,300)
- -------------------------------------------------------------------------
Net unrealized appreciation................................. $ 3,013,804
- -------------------------------------------------------------------------
</TABLE>
(c) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets. Market value of U.S. dollar denominated
investments in foreign securities represents 1.29% of net assets as of June
30, 1997.
45
<PAGE>
FORTIS SERIES FUND, INC.
GROWTH & INCOME SERIES
Schedule of Investments
June 30, 1997 (Unaudited)
COMMON STOCKS-84.08%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
--------- ------------- -------------
<C> <S> <C> <C>
AEROSPACE AND EQUIPMENT-1.67%
39,200 United Technologies Corp..................... $ 2,250,682 $ 3,253,600
------------- -------------
AUTOMOBILE AND MOTOR VEHICLE PARTS-2.84%
55,500 Genuine Parts Co............................. 1,550,534 1,880,062
81,000 Tenneco, Inc. (e)............................ 3,641,525 3,660,187
------------- -------------
5,192,059 5,540,249
------------- -------------
BANKS-5.74%
68,000 Banc One Corp. (e)........................... 2,524,477 3,293,750
33,000 Chase Manhattan Corp......................... 2,882,500 3,203,062
36,000 Great Western Financial Corp................. 1,726,157 1,935,000
14,000 U.S. Bancorp (e)............................. 787,129 897,750
36,000 Union Planters Corp.......................... 1,305,767 1,867,500
------------- -------------
9,226,030 11,197,062
------------- -------------
BUSINESS SERVICES AND SUPPLIES-1.00%
31,500 Omnicom Group, Inc........................... 969,907 1,941,187
------------- -------------
CONSUMER STAPLES-1.20%
42,000 Fortune Brands, Inc.......................... 1,180,361 1,567,125
42,000 Gallaher Group plc ADR (a)................... 667,773 774,375
------------- -------------
1,848,134 2,341,500
------------- -------------
DIVERSIFIED COMPANIES-2.06%
25,500 Chemed Corp.................................. 901,850 954,656
30,000 Minnesota Mining and Manufacturing Co........ 1,860,371 3,060,000
------------- -------------
2,762,221 4,014,656
------------- -------------
DRUGS-10.06%
33,300 Abbott Laboratories.......................... 1,350,588 2,222,775
36,000 American Home Products Corp. (e)............. 1,627,475 2,754,000
100,000 Glaxo Wellcome plc ADR (e)................... 3,685,750 4,181,250
33,000 Lilly (Eli) & Co., Inc....................... 1,489,560 3,607,312
33,500 Merck & Co., Inc. (e)........................ 1,966,881 3,467,250
10,500 Pfizer, Inc.................................. 648,251 1,254,750
61,000 Pharmacia and UpJohn, Inc.................... 2,514,623 2,119,750
------------- -------------
13,283,128 19,607,087
------------- -------------
ELECTRICAL EQUIPMENT-1.98%
59,200 General Electric Co. (e)..................... 2,295,975 3,870,200
------------- -------------
FINANCE SERVICES-7.83%
27,500 American Express Co.......................... 969,270 2,048,750
37,100 Beneficial Corp.............................. 1,802,661 2,636,419
43,200 Fannie Mae................................... 975,787 1,884,600
32,000 Household International, Inc................. 1,737,322 3,758,000
67,275 MBNA Corp.................................... 899,373 2,463,947
19,600 Student Loan Marketing Association (e)....... 1,020,328 2,489,200
------------- -------------
7,404,741 15,280,916
------------- -------------
FOOD-3.68%
33,000 ConAgra, Inc. (e)............................ 1,430,893 2,116,125
65,000 Heinz (H.J.) Co.............................. 2,076,425 2,998,125
46,000 Quaker Oats Co............................... 1,944,305 2,064,250
------------- -------------
5,451,623 7,178,500
------------- -------------
FURNITURE-0.81%
116,000 Shelby Williams Industries, Inc.............. 1,595,000 1,580,500
------------- -------------
<CAPTION>
Market
Shares Cost (b) Value (c)
--------- ------------- -------------
<C> <S> <C> <C>
HAND TOOLS AND GENERAL HARDWARE-1.36%
67,500 Snap-On, Inc................................. $ 2,030,431 $ 2,657,812
------------- -------------
HOUSEHOLD PRODUCTS-1.27%
18,800 Clorox Co.................................... 1,266,517 2,481,600
------------- -------------
INSURANCE-2.15%
70,000 LaSalle Re Holdings Ltd...................... 2,036,000 2,065,000
28,000 St. Paul Companies, Inc...................... 1,924,034 2,135,000
------------- -------------
3,960,034 4,200,000
------------- -------------
MACHINERY-OIL AND WELL-2.68%
40,300 Baker Hughes, Inc. (e)....................... 842,123 1,559,106
41,000 Dresser Industries, Inc. (e)................. 892,957 1,527,250
27,000 Halliburton Co............................... 1,263,695 2,139,750
------------- -------------
2,998,775 5,226,106
------------- -------------
MEDICAL SUPPLIES-1.55%
58,000 Baxter International, Inc.................... 2,145,564 3,030,500
------------- -------------
NATURAL GAS TRANSMISSIONS-5.90%
57,127 El Paso Natural Gas Co....................... 1,836,879 3,141,985
65,000 Enron Corp. (e).............................. 2,429,064 2,652,812
57,900 Sonat, Inc................................... 2,238,564 2,967,375
62,750 Williams Companies, Inc. (e)................. 1,609,680 2,745,312
------------- -------------
8,114,187 11,507,484
------------- -------------
OIL-CRUDE PETROLEUM AND GAS-5.22%
25,600 Amoco Corp................................... 1,759,417 2,225,600
48,000 Exxon Corp................................... 1,982,160 2,952,000
24,000 Kerr-McGee Corp.............................. 1,331,177 1,521,000
117,800 Monterey Resources, Inc. (e)................. 1,807,988 1,752,275
16,000 Texaco, Inc.................................. 1,625,104 1,740,000
------------- -------------
8,505,846 10,190,875
------------- -------------
OIL-REFINING-1.15%
32,000 Mobil Corp................................... 2,069,086 2,236,000
------------- -------------
PUBLISHING-1.78%
46,000 McGraw Hill Companies, Inc. (e).............. 1,942,430 2,705,375
27,000 Readers Digest Association, Inc. Class A..... 1,234,707 774,563
------------- -------------
3,177,137 3,479,938
------------- -------------
RAILROAD AND RAILROAD EQUIPMENT-0.77%
89,500 Tranz Rail Holdings Ltd. ADR (a)............. 1,190,250 1,510,313
------------- -------------
REAL ESTATE-INVESTMENT TRUST-4.55%
71,000 Beacon Properties Corp....................... 2,183,250 2,369,625
139,000 Cornerstone Properties, Inc.................. 1,946,000 2,137,125
52,600 Crescent Real Estate Equities Trust.......... 1,389,692 1,670,050
42,500 Highwoods Properties, Inc.................... 1,253,750 1,360,000
38,000 Spieker Properties, Inc...................... 1,311,000 1,337,125
------------- -------------
8,083,692 8,873,925
------------- -------------
RETAIL-CLOTHING-0.93%
90,000 Limited (The), Inc........................... 1,697,225 1,822,500
------------- -------------
RETAIL-DEPARTMENT STORES-1.18%
42,800 Sears Roebuck & Co........................... 1,764,053 2,300,500
------------- -------------
</TABLE>
46
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
--------- ------------- -------------
<C> <S> <C> <C>
RETAIL-SPECIALTY-2.03%
77,000 Intimate Brands, Inc. (e).................... $ 1,137,947 $ 1,617,000
46,900 Rite Aid Corp. (e)........................... 1,345,805 2,339,138
------------- -------------
2,483,752 3,956,138
------------- -------------
TOBACCO-1.82%
80,000 Philip Morris Companies, Inc................. 2,287,660 3,550,000
------------- -------------
TRANSPORTATION-0.58%
45,000 Knightsbridge Tankers Ltd.................... 900,000 1,136,250
------------- -------------
UTILITIES-ELECTRIC-2.88%
79,896 Duke Energy Corp............................. 2,347,508 3,830,015
45,000 Portland General Corp........................ 1,786,275 1,785,938
------------- -------------
4,133,783 5,615,953
------------- -------------
<CAPTION>
Market
Shares Cost (b) Value (c)
--------- ------------- -------------
<C> <S> <C> <C>
UTILITIES-TELEPHONE-7.41%
43,000 Deutsche Telekom AG ADR...................... $ 812,270 $ 1,037,375
53,400 Frontier Corp................................ 1,369,424 1,064,663
52,000 GTE Corp. (e)................................ 2,275,493 2,281,500
67,500 SBC Communications, Inc...................... 4,076,008 4,176,563
40,500 Sprint Corp. (e)............................. 1,437,021 2,131,313
33,000 Telecom Corp. of New Zealand Ltd. ADR (e).... 1,093,831 1,344,750
64,000 U.S. West Communications Group............... 1,988,480 2,412,000
------------- -------------
13,052,527 14,448,164
------------- -------------
TOTAL COMMON STOCKS.......................... $ 122,140,019 $ 164,029,515
------------- -------------
------------- -------------
</TABLE>
PREFERRED STOCKS-6.04%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
-------- ------------- -------------
<C> <S> <C> <C>
CONTAINERS AND PACKAGING-0.98%
37,900 Crown Cork and Seal Co, Inc., Convertible Pfd
4.50%...................................... $ 1,677,075 $ 1,913,950
------------- -------------
INSURANCE-2.12%
95,000 Sunamerica, Inc., Convertible Preferred
8.50%...................................... 3,564,404 4,144,375
------------- -------------
OIL-CRUDE PETROLEUM AND GAS-0.22%
9,000 Nuevo Energy Co., Convertible Preferred Ser A
(e)........................................ 450,000 429,750
------------- -------------
REAL ESTATE-INVESTMENT TRUST-0.91%
65,000 Excel Realty Trust, Inc...................... 1,625,000 1,771,250
------------- -------------
UTILITIES-ELECTRIC-1.81%
60,000 AES Corp. Conv., Ser A "Tecons".............. 3,000,000 3,532,500
------------- -------------
TOTAL PREFERRED STOCKS....................... $ 10,316,479 $ 11,791,825
------------- -------------
------------- -------------
</TABLE>
CORPORATE BONDS-INVESTMENT GRADE-0.88%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- ------------- ------------- -------------
<C> <S> <C> <C> <C>
WASTE DISPOSAL-0.88%
$1,600,000 USA Waste Services, Inc., 4.00% Sub Note
2-1-2002................................... BBB- $ 1,643,875 $ 1,722,000
------------- -------------
TOTAL LONG-TERM INVESTMENTS.................. $ 134,100,373 $ 177,543,340
------------- -------------
------------- -------------
</TABLE>
47
<PAGE>
FORTIS SERIES FUND, INC.
GROWTH & INCOME SERIES (CONTINUED)
Schedule of Investments
June 30, 1997 (Unaudited)
SHORT-TERM INVESTMENTS-8.71%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
----------- -------------
<C> <S> <C>
BANKS-4.71%
$9,195,000 First Trust Money Market Variable Rate Time
Deposit, Current rate -- 5.44%............. $ 9,195,000
-------------
DIVERSIFIED FINANCE-1.38%
2,699,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.42%...................... 2,699,000
-------------
U.S. GOVERNMENT AGENCY-2.61%
5,100,000 Federal Home Loan Mortgage Corp., 5.49%,
7-7-1997................................... 5,094,645
-------------
TOTAL SHORT-TERM INVESTMENTS................. $ 16,988,645
-------------
-------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$151,089,018) (b).......................... $ 194,531,985
-------------
-------------
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 1997, the cost of securities for federal income tax purposes
was $151,089,018, and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $44,918,525
Unrealized depreciation..................................... (1,475,558)
- -------------------------------------------------------------------------
Net Unrealized appreciation................................. $43,442,967
- -------------------------------------------------------------------------
</TABLE>
(c) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets. Market value of investments in foreign
securities represents 6.18% of net assets as of June 30, 1997.
(e) Security is fully or partially on loan at June 30, 1997. See Note 1 of
accompanying Notes to Financial Statements.
48
<PAGE>
FORTIS SERIES FUND, INC.
S & P 500 INDEX SERIES
Schedule of Investments
June 30, 1997 (Unaudited)
COMMON STOCKS-97.33%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
BASIC INDUSTRY-4.82%
1,000 Adobe Systems, Inc........................... $ 45,520 $ 35,062
1,000 Air Products & Chemicals..................... 70,404 81,250
400 Armstrong World Industry..................... 25,547 29,350
400 Ashland, Inc................................. 17,058 18,550
1,500 Autozone, Inc. (a)........................... 37,165 35,344
700 Avery Dennison Corp.......................... 25,585 28,087
100 Ball Corp.................................... 2,979 3,006
400 Bemis, Inc................................... 15,121 17,300
400 Boise Cascade Corp........................... 14,759 14,125
400 Centex Corp.................................. 12,291 16,250
800 Champion International Corp.................. 36,199 44,200
1,000 Crown Cork & Seal Company, Inc............... 55,006 53,437
2,000 Dow Chemical Co.............................. 165,135 174,250
9,600 Du Pont (E.I.) De Nemours.................... 476,449 603,600
600 Eastman Chemical Co.......................... 34,760 38,100
1,200 Engelhard Corp............................... 25,907 25,125
600 Fluor Corp................................... 40,466 33,112
100 FMC Corp. (a)................................ 6,766 7,944
600 Georgia-Pacific Corp......................... 44,635 51,225
300 Goodrich (B.F.) Co........................... 12,430 12,994
700 Grace (W. R.) & Co........................... 38,584 38,587
700 Great Lakes Chemical......................... 35,289 36,662
900 Hercules, Inc................................ 42,732 43,087
2,700 International Paper.......................... 117,497 131,119
1,100 James River Corp. of Virginia................ 34,188 40,700
600 Kaufman & Broad Home Corp.................... 8,596 10,537
4,600 Kimberly Clark Corp.......................... 217,694 228,850
700 Louisiana Pacific Corp....................... 15,116 14,787
1,400 Masco Corp................................... 49,774 58,450
500 Mead Corp.................................... 28,627 31,125
5,000 Monsanto Co.................................. 189,903 215,312
1,400 Morton International, Inc. (and rights)...... 42,757 42,262
600 Nalco Chemical Co............................ 21,441 23,175
2,700 Occidental Petroleum Corp.................... 65,403 67,669
1,300 Parametric Technology Corp. (a).............. 54,787 55,331
100 Potlatch Corp................................ 4,229 4,525
1,300 Praxair, Inc................................. 62,975 72,800
500 Rohm & Haas Co............................... 38,031 45,031
1,700 Sherwin Williams Co.......................... 49,464 52,487
1,200 Sigma Aldrich Corp........................... 36,157 42,075
1,100 Stone Container Corp......................... 15,215 15,744
400 Temple Inland, Inc........................... 20,733 21,600
1,600 Tenneco, Inc. (a)............................ 69,405 72,300
500 Union Camp Corp.............................. 24,894 25,000
1,000 Union Carbide Corp. Holdings Co.............. 46,833 47,062
700 Westvaco Corp................................ 20,241 22,006
1,500 Weyerhaeuser Co.............................. 68,972 78,000
300 Willamette Industries, Inc................... 19,025 21,000
------------ ------------
2,602,744 2,879,594
------------ ------------
CAPITAL SPENDING-23.42%
3,000 3 Com Corp. (a).............................. 129,212 135,000
1,100 Advanced Micro Devices (a)................... 26,938 39,600
400 Aeroquip-Vickers, Inc........................ 14,999 18,900
1,692 Allegheny Teledyne, Inc...................... 40,326 45,684
2,400 Allied Signal, Inc........................... 166,483 201,600
1,100 Amdahl Corp. (a)............................. 11,241 9,625
1,900 Amp, Inc..................................... 73,259 79,325
600 Andrew Corp. (and rights) (a)................ 20,924 16,875
1,100 Apple Computer, Inc. (a)..................... 23,451 15,675
1,500 Applied Materials, Inc. (a).................. 65,826 106,219
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
200 Autodesk, Inc................................ $ 6,735 $ 7,662
2,300 Automatic Data Processing.................... 98,480 108,100
1,700 Bay Networks, Inc. (a)....................... 39,457 45,156
6,066 Boeing Co.................................... 298,571 321,877
100 Briggs & Stratton Corp....................... 4,379 5,000
1,700 Browning Ferris Industries................... 49,322 56,525
1,300 Cabletron System, Inc. (a)................... 42,435 36,806
1,000 Case Corp.................................... 53,678 68,875
1,900 Caterpillar, Inc............................. 161,558 204,012
900 Ceridian Corp. (a)........................... 35,826 38,025
100 Cincinnati Milacron.......................... 2,331 2,594
5,500 Cisco Systems, Inc. (a)...................... 318,709 369,187
1,300 Cognizant Corp............................... 41,811 52,650
2,600 Compaq Computer Corp. (a).................... 197,865 258,050
3,000 Computer Association International........... 151,999 167,062
600 Computer Sciences (a)........................ 42,235 43,275
1,100 Cooper Industries............................ 49,716 54,725
150 Crane Co..................................... 4,168 6,272
3,550 CUC International, Inc. (a).................. 85,982 91,634
300 Cummins Engine, Inc.......................... 15,105 21,169
200 Data General Corp. (a)....................... 2,512 5,200
2,200 Deere & Co................................... 93,957 120,725
1,400 Dell Computer Corp. (a)...................... 81,400 164,412
900 Deluxe Corp.................................. 30,727 30,712
1,300 Digital Equipment Corp. (a).................. 47,149 46,069
900 Dover Corp................................... 46,166 55,350
600 Dow Jones & Co., Inc......................... 24,362 24,112
1,500 Dresser Industries, Inc...................... 47,303 55,875
900 DSC Communications (a)....................... 21,901 20,025
1,600 Dun & Bradstreet............................. 39,294 42,000
2,200 E M C Corp. (a).............................. 67,858 85,800
600 Eaton Corp................................... 38,358 52,387
600 EG & G, Inc.................................. 11,774 13,500
3,600 Emerson Electric Co.......................... 171,925 198,225
3,700 First Data Corp.............................. 139,418 162,569
600 Foster Wheeler Corp.......................... 24,899 24,300
500 General Dynamics Corp........................ 34,583 37,500
28,300 General Electric Co.......................... 1,448,161 1,850,112
600 General Signal Corp.......................... 24,049 26,175
1,550 Genuine Parts Co............................. 48,829 52,506
100 Giddings & Lewis, Inc........................ 1,875 2,087
500 Grainger (W.W.), Inc......................... 37,261 39,094
300 Harnischfeger Industries..................... 12,274 12,450
100 Harris Corp.................................. 6,243 8,400
8,600 Hewlett Packard Co........................... 427,898 481,600
1,000 Honeywell, Inc............................... 64,470 75,875
1,000 IKON Office Solutions, Inc................... 32,788 24,937
2,400 Illinois Tool Works, Inc..................... 97,546 119,850
1,100 Ingersoll Rand Co............................ 51,853 67,925
6,900 Intel Corp................................... 877,333 978,506
200 Intergraph Corp. (a)......................... 2,300 1,700
8,800 International Business Machines.............. 623,384 793,650
800 Interpublic Group............................ 40,843 49,050
1,100 ITT Industries, Inc.......................... 25,763 28,325
700 Johnson Controls, Inc........................ 26,549 28,744
2,500 Laidlaw, Inc. ADR............................ 30,431 34,531
1,600 Lockheed Martin Corp......................... 137,937 165,700
1,100 LSI Logic Corp. (a).......................... 35,232 35,200
5,431 Lucent Technologies, Inc..................... 290,864 391,371
600 McDermott International, Inc................. 12,533 17,512
1,800 McDonnell Douglas Corp....................... 99,097 123,300
1,900 Micron Technology, Inc....................... 59,649 75,881
10,200 Microsoft Corp. (a).......................... 924,300 1,289,025
</TABLE>
49
<PAGE>
FORTIS SERIES FUND, INC.
S & P 500 INDEX SERIES (CONTINUED)
Schedule of Investments
June 30, 1997 (Unaudited)
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
3,600 Minnesota Mining & Manufacturing Co.......... $ 298,835 $ 367,200
5,100 Motorola, Inc................................ 303,494 387,600
1,100 National Semiconductor (a)................... 22,895 33,687
400 National Service Industry.................... 15,718 19,475
2,000 Northern Telecom Ltd......................... 125,899 182,000
500 Northrop Grumman Co.......................... 35,984 43,906
2,900 Novell, Inc. (a)............................. 30,516 20,119
5,800 Oracle System Corp. (a)...................... 236,245 292,175
300 Owens Corning................................ 13,652 12,937
1,100 Pall Corp.................................... 26,515 25,575
500 Parker Hannifin Corp......................... 20,858 30,344
300 Perkin Elmer Corp............................ 19,578 23,869
1,100 Pitney Bowes, Inc............................ 61,763 76,450
1,900 PPG Industries, Inc.......................... 106,367 110,437
400 Raychem Corp................................. 33,374 29,750
2,100 Raytheon Co.................................. 100,537 107,100
2,100 Rockwell International Corp.................. 129,353 123,900
900 Ryder System, Inc............................ 28,691 29,700
400 Safety Kleen Corp............................ 6,071 6,750
900 Scientific Atlanta........................... 18,378 19,687
1,900 Seagate Technology (a)....................... 69,903 66,856
2,100 Service Corp. International.................. 63,353 69,037
100 Shared Medical System Corp................... 6,355 5,400
1,300 Silicon Graphics (a)......................... 30,195 19,500
300 Snap-On, Inc................................. 9,533 11,812
700 Stanley Works................................ 25,099 28,000
3,000 Sun Microsystem, Inc. (a).................... 88,393 111,656
1,100 Tandem Computers, Inc.(a).................... 13,325 22,275
100 Tektronix, Inc............................... 3,816 6,000
1,600 Tellabs, Inc. (a)............................ 64,308 89,400
1,800 Texas Instruments, Inc....................... 123,487 151,312
1,300 Textron, Inc................................. 64,998 86,287
1,300 Thermo Electron Corp......................... 50,232 44,687
500 Thomas & Betts Corp.......................... 22,151 26,281
600 Timken Co.................................... 13,903 21,337
1,300 Tyco International Ltd. Class B.............. 65,534 90,431
1,700 Unisys Corp.(a).............................. 11,051 12,962
2,000 United Technologies Corp..................... 135,514 166,000
5,500 US West Media Group (a)...................... 106,470 111,375
4,200 Waste Management, Inc........................ 139,340 134,925
2,800 Xerox Corp................................... 154,814 220,850
------------ ------------
11,532,566 13,978,470
------------ ------------
CONSUMER DISCRETIONARY-11.00%
2,100 Albertsons, Inc.............................. 75,645 76,650
600 American Greetings Corp...................... 17,494 22,275
1,100 American Stores Co........................... 45,650 54,312
700 Black & Decker Mfg. Co....................... 26,029 26,031
1,000 Brunswick Corp............................... 25,284 31,250
1,100 Charming Shoppes, Inc. (a)................... 6,153 5,741
6,100 Chrysler Corp................................ 196,014 200,156
700 Circuit City Stores.......................... 22,364 24,894
2,900 Comcast Corp................................. 52,210 61,987
800 Cooper Tire & Rubber......................... 17,856 17,600
1,800 Costco Companies, Inc........................ 44,793 59,175
1,300 CVS Corp..................................... 58,975 66,625
700 Dana Corp.................................... 21,727 26,600
1,400 Darden Restaurant............................ 12,968 12,687
1,700 Dayton Hudson Corp........................... 68,855 90,419
1,000 Dillards, Inc. Class A....................... 32,724 34,625
5,600 Disney (Walt) Co. Holdings................... 403,162 449,400
1,200 Donnelley (R.R.) & Sons...................... 39,578 43,950
600 Echlin, Inc.................................. 20,070 21,600
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
1,700 Federated Department Stores (a).............. $ 57,436 $ 59,075
400 Fleetwood Enterprises........................ 10,334 11,925
200 Fleming Co., Inc............................. 3,108 3,600
10,500 Ford Motor Co................................ 359,545 396,375
600 Fruit of the Loom, Inc. (a).................. 21,358 18,600
1,300 Gannett, Inc................................. 103,398 128,375
2,600 Gap, Inc..................................... 81,260 101,075
1,100 General Instruments Corp. (a)................ 26,037 27,500
6,400 General Motors Corp.......................... 357,243 356,400
700 Giant Foods, Inc............................. 23,185 22,837
1,100 Goodyear Tire & Rubber Co.................... 56,281 69,644
300 Great Atlantic & Pacific Tea Co.............. 9,543 8,156
500 Harcourt General, Inc........................ 23,546 23,812
100 Harland John H. Co........................... 2,691 2,281
700 Harrah's Entertainment, Inc. (a)............. 14,364 12,600
1,100 Hasbro, Inc.................................. 28,553 31,212
1,400 HFS, Inc. (a)................................ 87,763 81,200
2,000 Hilton Hotels Corp........................... 55,243 53,125
4,100 Home Depot, Inc.............................. 224,496 282,644
1,200 ITT Corp. (a)................................ 71,394 73,275
100 Jostens, Inc................................. 1,981 2,675
4,200 K Mart Corp. (a)............................. 48,923 51,450
600 King World Productions, Inc. (a)............. 22,921 21,000
800 Knight-Ridder, Inc........................... 30,977 39,250
2,400 Kroger Co. (a)............................... 64,522 69,600
2,500 Limited (The), Inc........................... 47,957 50,625
400 Liz Claiborne, Inc........................... 13,693 18,650
200 Longs Drug Stores, Inc....................... 4,429 5,237
1,800 Lowe's Companies, Inc........................ 66,704 66,825
900 Mariott International, Inc................... 48,316 55,237
2,500 Mattel, Inc.................................. 66,447 84,687
1,900 May Department Stores Co..................... 87,896 89,775
900 Maytag Corp.................................. 19,339 23,512
5,900 McDonald's Corp.............................. 282,101 285,044
1,000 McGraw Hill Companies, Inc................... 48,997 58,812
400 Mercantile Stores Co., Inc................... 20,441 25,175
700 Meredith Corp................................ 16,821 20,300
700 Moore Corp. Ltd.............................. 15,002 13,781
600 Navistar International Corp. (a)............. 5,998 10,350
700 New York Times Co............................ 26,206 34,650
2,700 Nike, Inc. Class B........................... 165,430 157,612
600 Nordstrom, Inc............................... 24,637 29,437
600 Paccar, Inc.................................. 18,283 27,862
1,900 Penney (J.C.), Inc........................... 95,698 99,156
400 Pep Boys Manny Moe & Jack.................... 13,321 13,625
500 Reebok International Ltd..................... 18,369 23,375
1,300 Rite Aid Corp................................ 56,132 64,837
600 Russell Corp................................. 17,348 17,775
3,400 Sears Roebuch & Co........................... 165,280 182,750
100 Springs Industries, Inc. Class A............. 4,416 5,275
600 Stride Rite Corp............................. 7,299 7,725
600 Supervalu, Inc............................... 16,833 20,700
1,500 Sysco Corp................................... 50,449 54,750
400 Tandy Corp................................... 19,077 22,400
5,700 Tele-Communications TCI Group, Inc. (a) 82,571 84,787
4,600 Time Warner, Inc............................. 193,052 221,950
700 Times Mirror Co. Class A..................... 34,149 38,675
1,200 TJX Companies, Inc........................... 22,389 31,650
2,500 Toys"R"US, Inc. (a).......................... 69,567 87,500
1,100 Tribune Co................................... 42,747 52,869
1,100 TRW, Inc..................................... 56,561 62,494
500 V F Corp..................................... 31,652 42,375
2,900 Viacom, Inc. Class B (a)..................... 97,623 87,000
</TABLE>
50
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
19,400 Wal-Mart Stores, Inc......................... $ 522,980 $ 655,962
1,900 Walgreen Co.................................. 76,648 101,887
1,300 Wendy's International, Inc................... 28,798 33,719
5,600 Westinghouse Electric Co..................... 106,423 129,500
400 Whirlpool Corp............................... 20,646 21,825
1,300 Winn Dixie Stores, Inc....................... 45,449 48,425
1,100 Woolworth Corp.(a)........................... 23,703 26,400
------------ ------------
5,871,530 6,570,620
------------ ------------
CONSUMER STAPLES-13.34%
700 Alberto-Culver Co............................ 18,398 19,600
4,500 Anheuser Busch Companies, Inc................ 182,465 188,719
4,570 Archer-Daniels Midland....................... 87,366 107,395
900 Avon Products, Inc........................... 47,672 63,506
500 Brown Forman Corp............................ 22,771 24,406
4,200 Campbell Soup Co............................. 174,783 210,000
900 Cardinal Health, Inc......................... 53,807 51,525
200 Clorox Co.................................... 17,972 26,400
21,400 Coca Cola Co................................. 1,207,573 1,444,500
2,700 Colgate-Palmolive Co......................... 144,075 176,175
2,100 Conagra, Inc................................. 106,744 134,662
100 Coors Adolph Co. Class B..................... 1,905 2,662
1,900 Corning, Inc................................. 72,538 105,687
1,100 CPC International, Inc....................... 85,853 101,544
2,800 Eastman Kodak Co............................. 223,577 214,900
800 Ecolab, Inc.................................. 32,531 38,200
1,300 Fortune Brands, Inc.......................... 39,635 48,506
1,300 General Mills, Inc........................... 80,307 84,662
4,800 Gillette Co.................................. 367,770 454,800
3,100 Heinz (H.J.) Co.............................. 123,325 142,988
1,100 Hershey Foods Corp........................... 49,446 60,844
1,200 International Flavors & Fragrance, Inc....... 54,922 60,600
11,500 Johnson & Johnson Co......................... 638,541 740,313
1,700 Kellogg Co................................... 119,193 145,563
100 Nacco Industries, Inc........................ 6,117 5,644
1,600 Newell Co.................................... 53,117 63,400
13,100 Pepsico, Inc................................. 434,182 492,069
21,200 Philip Morris Co., Inc....................... 819,767 940,750
500 Pioneer Hi-Bred International................ 30,659 40,000
300 Polaroid Corp................................ 13,854 16,650
5,800 Procter & Gamble Co.......................... 647,776 819,250
1,400 Quaker Oats Co............................... 52,812 62,825
1,000 Ralston-Ralston Purina Group................. 77,174 82,188
1,200 Rubbermaid, Inc.............................. 32,594 35,700
3,900 Sara Lee Corp................................ 146,498 162,338
3,000 Seagrams Ltd................................. 112,767 120,750
900 Tupperware Corp.............................. 37,064 32,850
1,400 Unilever N.V................................. 247,416 305,200
1,400 UST, Inc..................................... 40,914 38,850
700 Whitman Corp................................. 16,887 16,800
1,200 Wrigley Jr., William Co...................... 68,770 80,400
------------ ------------
6,791,537 7,963,821
------------ ------------
ENERGY & RELATED-9.01%
1,000 Amerada Hess Corp............................ 54,790 55,563
4,200 Amoco Corp................................... 337,931 365,138
2,800 Atlantic Richfield........................... 186,914 197,400
1,400 Baker Hughes, Inc............................ 48,905 54,163
1,000 Burlington Resources, Inc.................... 43,363 44,125
5,600 Chevron Corp................................. 362,187 414,050
1,000 Coastal Corp................................. 44,470 53,188
400 Columbia Gas Systems, Inc.................... 24,103 26,100
900 Cons Natural Gas............................. 45,573 48,431
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
100 Eastern Enterprises.......................... $ 3,504 $ 3,469
2,200 Enron Corp................................... 90,849 89,788
400 Enserch Corp................................. 8,059 8,900
21,400 EXXON Corp................................... 1,067,591 1,316,100
1,000 Halliburton Co............................... 68,490 79,250
100 Helmerich & Payne............................ 3,704 5,763
300 Kerr-McGee Corp.............................. 20,865 19,013
200 Louisiana Land & Exploration Co.............. 10,933 11,425
6,600 Mobil Corp................................... 418,482 461,175
300 Nicor, Inc................................... 9,587 10,763
1,300 Noram Energy Corp............................ 18,334 19,825
100 Oneok, Inc................................... 2,617 3,219
1,000 Oryx Energy Co. (a).......................... 20,863 21,125
1,000 Pacific Enterprises.......................... 31,545 33,625
400 Pennzoil Co.................................. 21,141 30,700
600 Peoples Energy Corp. (and rights)............ 20,472 22,463
2,500 Phillips Petroleum Co........................ 102,775 109,375
600 Rowan Companies, Inc. (a).................... 11,058 16,913
17,600 Royal Dutch Petroleum NY Reg. Shares......... 741,859 957,000
1,200 Santa Fe Energy Resources (a)................ 16,266 17,625
2,000 Schlumberger Ltd............................. 201,917 250,000
600 Sonat, Inc................................... 27,952 30,750
600 Sun Co., Inc................................. 16,798 18,600
2,400 Texaco, Inc.................................. 239,931 261,000
2,092 Union Pacific Resources Group................ 56,615 52,039
2,300 Unocal Corp.................................. 90,948 89,269
2,400 USX-Marathon Group........................... 59,705 69,300
600 Western Atlas, Inc. (a)...................... 40,571 43,950
1,600 Williams Companies, Inc...................... 64,011 70,000
------------ ------------
4,635,678 5,380,582
------------ ------------
FINANCE-15.14%
1,244 Aetna, Inc................................... 102,124 127,355
800 Ahmanson H F & Co............................ 25,933 34,400
3,600 Allstate Corp................................ 209,305 262,800
3,900 American Express Co.......................... 222,816 290,550
2,210 American General Corp........................ 92,530 105,528
4,000 American International Group, Inc............ 472,801 597,500
1,550 Aon Corp..................................... 67,940 80,213
3,900 Banc One Corp................................ 165,280 188,906
3,100 Bank New York, Inc........................... 110,610 134,850
6,000 BankAmerica Corp............................. 304,025 387,375
1,200 BankBoston Corp.............................. 79,878 86,475
1,000 Bankers Trust of New York Corp............... 80,607 87,000
1,900 Barnett Banks, Inc........................... 80,323 99,750
500 Beneficial Corp.............................. 34,057 35,531
1,000 Block H & R, Inc............................. 30,049 32,250
1,300 Charles Schwab Corp.......................... 52,640 52,894
3,800 Chase Manhattan Corp......................... 332,284 368,838
1,700 Chubb Corp................................... 91,356 113,688
600 Cigna Corp................................... 83,327 106,500
4,000 Citicorp..................................... 432,984 482,250
1,000 Comerica, Inc................................ 51,141 68,000
1,900 Conseco, Inc................................. 72,133 70,300
1,600 Corestates Financial Corp.................... 75,859 86,000
900 Countrywide Credit Industries................ 30,004 28,069
1,200 Equifax, Inc................................. 42,600 44,625
9,500 Fannie Mae................................... 369,665 414,438
1,100 Fifth Third Bancorp.......................... 73,731 90,234
1,000 First Bank System, Inc....................... 70,268 85,375
2,800 First Chicago NBD Corp....................... 151,013 169,400
2,400 First Union Corp............................. 189,366 222,000
2,300 Fleet Financial Group, Inc................... 119,024 145,475
</TABLE>
51
<PAGE>
FORTIS SERIES FUND, INC.
S & P 500 INDEX SERIES (CONTINUED)
Schedule of Investments
June 30, 1997 (Unaudited)
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
6,000 Freddie Mac.................................. $ 169,952 $ 206,250
600 General Re Corp.............................. 97,577 109,200
500 Golden West Financial........................ 31,221 35,000
1,000 Great Western Financial Corp................. 35,510 53,750
1,200 Green Tree Financial......................... 40,861 42,750
1,000 Hartford Financial Services Group............ 69,347 82,750
800 Household International Corp................. 72,890 93,950
1,000 Jefferson Pilot Corp......................... 60,720 69,875
2,000 KeyCorp...................................... 98,753 111,750
1,200 Lincoln National Corp........................ 65,061 77,250
1,000 Loews Corp................................... 89,440 100,125
1,000 Marsh & McLennan Companies................... 51,602 71,375
300 MBIA, Inc.................................... 29,500 33,844
2,900 MBNA Corp.................................... 91,791 106,213
2,100 Mellon Bank Corp............................. 73,890 94,763
2,900 Merrill Lynch & Co........................... 119,785 172,913
1,000 MGIC Investment Corp......................... 35,307 47,938
1,600 Morgan J. P. & Co., Inc...................... 158,410 167,000
5,015 Morgan Stanley, Dean Witter, Discover &
Co......................................... 180,442 215,958
2,000 National City Corp........................... 89,110 105,000
6,222 Nationsbank Corp............................. 319,237 401,319
3,100 Norwest Corp................................. 144,219 174,375
3,100 PNC Bank Corp................................ 119,834 129,038
700 Providian Financial Corporation (a).......... 17,342 22,488
100 Pulte Corp................................... 2,692 3,456
500 Republic New York Corp....................... 41,471 53,750
1,200 Safeco Corp.................................. 48,136 56,025
1,000 Salomon, Inc................................. 52,685 55,625
700 St. Paul Companies, Inc...................... 44,121 53,375
1,800 Suntrust Banks, Inc.......................... 83,799 99,113
1,000 Torchmark Corp............................... 57,564 71,250
400 Transamerica Corp............................ 32,209 37,425
5,433 Travelers Group, Inc......................... 253,312 342,619
1,100 U S Bancorp.................................. 47,713 70,538
1,200 UNUM Corp.................................... 44,175 50,400
1,200 USF & G Corp................................. 25,482 28,800
1,300 Wachavia Corp................................ 70,945 75,806
800 Wells Fargo & Co............................. 209,407 215,600
------------ ------------
7,591,185 9,037,225
------------ ------------
HEALTH CARE-9.85%
6,600 Abbott Labs.................................. 360,782 440,550
600 Allergan, Inc................................ 21,346 19,088
900 Alza Corp. (a)............................... 25,439 26,100
5,400 American Home Products....................... 357,282 413,100
2,500 Amgen, Inc. (a).............................. 150,613 145,313
600 Bard (C.R.), Inc............................. 18,972 21,788
600 Bausch & Lomb................................ 22,796 28,275
2,400 Baxter International, Inc.................... 111,377 125,400
1,100 Becton Dickinson............................. 47,331 55,688
1,100 Beverly Enterprises (a)...................... 15,478 17,875
1,100 Biomet, Inc.................................. 18,128 20,488
1,900 Boston Scientific Corp. (a).................. 101,858 116,731
8,500 Bristol Myers Squibb......................... 496,462 688,500
5,650 Columbia/HCA Healthcare Corp................. 209,783 222,116
600 Guidant Corp................................. 37,210 51,000
3,200 Healthsouth Corp. (a)........................ 69,540 79,800
1,200 Humana, Inc. (a)............................. 25,179 27,750
4,700 Lilly (Eli) & Co............................. 385,265 513,769
800 Mallinckrodt Group, Inc...................... 30,745 30,400
600 Manor Care, Inc.............................. 15,704 19,575
2,200 Medtronic, Inc............................... 147,072 178,200
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
10,200 Merck & Co., Inc............................. $ 838,938 $ 1,055,700
400 Millipore Corp............................... 16,760 17,600
5,500 Pfizer, Inc.................................. 485,560 657,250
4,300 Pharmacia & Upjohn, Inc...................... 164,053 149,425
6,400 Schering Plough Corp......................... 231,792 306,400
600 St. Jude Medical, Inc. (a)................... 22,170 23,400
2,400 Tenet Healthcare Corp. (a)................... 58,247 70,950
700 U S Surgical Corp............................ 23,779 26,075
1,400 United Healthcare............................ 67,107 72,800
2,100 Warner Lambert Co............................ 164,654 260,925
------------ ------------
4,741,422 5,882,031
------------ ------------
METAL & MINING-1.18%
2,200 Alcan Aluminium Ltd.......................... 73,325 76,313
1,500 Aluminum Company of America.................. 100,579 113,063
1,100 Armco, Inc. (a).............................. 4,591 4,263
400 ASARCO, Inc.................................. 11,349 12,250
3,200 Barrick Gold Corp............................ 84,103 70,400
1,900 Battle Mountain Gold Co...................... 13,693 10,806
1,100 Bethlehem Steel Corp. (a).................... 10,013 11,481
700 Cyprus Amax Mineral.......................... 16,252 17,150
1,400 Echo Bay Mines Ltd........................... 10,680 8,050
2,300 Freeport-McMoran Copper & Gold, Inc.......... 68,750 71,588
1,400 Homestake Mining Co.......................... 21,997 18,288
1,200 Inco Ltd..................................... 39,359 36,075
200 Inland Steel Industries, Inc................. 4,008 5,225
1,301 Newmont Mining Corp.......................... 51,651 50,739
1,000 Nucor Corp................................... 54,620 56,500
600 Phelps Dodge Corp............................ 44,142 51,113
2,000 Placer Dome, Inc............................. 45,005 32,750
400 Reynolds Metals Co........................... 24,134 28,500
600 USX-US Steel Group, Inc...................... 17,202 21,038
600 Worthington Industries, Inc.................. 12,750 10,988
------------ ------------
708,203 706,580
------------ ------------
TRANSPORTATION-1.21%
600 AMR Corp. (a)................................ 50,094 55,500
1,100 Burlington Northern Santa Fe................. 90,453 98,863
600 Caliber System, Inc.......................... 19,459 22,350
1,900 CSX Corp..................................... 92,149 105,450
800 Delta Air Lines, Inc......................... 65,620 65,600
1,000 Federal Express Corp. (a).................... 48,364 57,750
1,100 Norfolk Southern Corp........................ 98,505 110,825
1,400 Southwest Airlines Co........................ 35,824 36,225
2,100 Union Pacific Corp........................... 122,114 148,050
600 USAir Group, Inc. (a)........................ 10,671 21,000
------------ ------------
633,253 721,613
------------ ------------
UTILITIES-8.36%
4,300 Airtouch Communication (a)................... 117,103 117,713
1,500 Alltel Corp.................................. 46,685 50,156
1,600 American Electric Power, Inc................. 66,291 67,200
4,700 Ameritech Corp............................... 280,716 319,306
14,200 AT & T Corp.................................. 535,024 497,888
1,400 Baltimore Gas & Electric..................... 37,429 37,363
3,800 Bell Atlantic Corp........................... 246,067 288,325
8,400 Bellsouth Corp............................... 358,231 389,550
1,200 Carolina Power and Light Co.................. 43,002 43,050
1,700 Central & South West Corp.................... 41,953 36,125
1,300 Cinergy Corp................................. 43,102 45,256
1,900 Cons-Edison Co. NY........................... 56,678 55,931
1,500 Dominion Resources, Inc...................... 57,185 54,938
1,400 DTE Energy Co................................ 41,224 38,675
</TABLE>
52
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
2,953 Duke Energy Corp............................. $ 127,264 $ 141,559
3,500 Edison International......................... 69,510 87,063
2,200 Entergy Corp................................. 56,610 60,225
1,800 FPL Group, Inc............................... 82,098 82,913
1,600 Frontier Corp................................ 34,428 31,900
1,100 GPU, Inc..................................... 37,245 39,463
8,100 GTE Corp..................................... 356,951 355,388
1,800 Houston Industries, Inc...................... 39,337 38,588
5,700 MCI Communications Corp...................... 189,194 218,203
1,000 Niagara Mohawk Power (a)..................... 9,495 8,563
500 Northern States Power Co..................... 23,771 25,875
3,700 Nynex Corp................................... 181,145 213,213
1,500 Ohio Edison Co............................... 32,602 32,719
3,500 P G & E Corporation.......................... 80,036 84,875
2,500 Pacificorp................................... 52,178 55,000
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
1,900 Peco Energy Co............................... $ 44,859 $ 39,900
1,600 PP&L Resources, Inc.......................... 35,470 31,900
2,000 Public Service Enterprise.................... 53,547 50,000
7,801 SBC Communications........................... 414,300 482,687
5,700 Southern Co.................................. 126,868 124,688
3,900 Sprint Corp.................................. 172,154 205,238
1,800 Texas Utilities Co........................... 71,001 61,988
1,900 Unicom Corp.................................. 46,147 42,275
900 Union Electric Co............................ 33,345 33,919
4,100 US West Communications Group................. 136,509 154,519
7,800 Worldcom, Inc. (a)........................... 204,396 249,600
------------ ------------
4,681,150 4,993,737
------------ ------------
TOTAL COMMON STOCKS.......................... $ 49,789,268 $ 58,114,273
------------ ------------
------------ ------------
</TABLE>
SHORT-TERM INVESTMENTS-2.18%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
----------- ------------
<C> <S> <C>
INVESTMENT COMPANY-2.02%
$1,206,757 First American Prime Obligation Fund, Current
rate -- 5.32%.............................. $ 1,206,757
------------
U.S. TREASURY BILLS-0.16%
95,000 US Treasury Bill, 5.10%, 9-25-1997 (e)....... 93,859
------------
TOTAL SHORT-TERM INVESTMENTS................. $ 1,300,616
------------
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$51,089,884)............................... $59,414,889
------------
------------
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 1997, the cost of securities for federal income tax purposes
was $51,130,996, and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 8,917,122
Unrealized depreciation..................................... (633,229)
- -------------------------------------------------------------------------
Net Unrealized appreciation................................. $ 8,283,893
- -------------------------------------------------------------------------
</TABLE>
(c) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets. Market value of investments in foreign
securities represents 3.38% of net assets as of June 30, 1997.
(e) Security pledged as initial margin deposit for open financial futures
position detailed below:
<TABLE>
<CAPTION>
FINANCIAL FUTURES-LONG
MARKET UNREALIZED
VALUE APPRECIATION
NUMBER OF COVERED BY (DEPRECIATION)
ISSUER CONTRACT(S) CONTRACT(S) EXPIRATION AT 6/30/97
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Standard & Poor's 500....................................... 4 $1,780,500 September $ 24,225
</TABLE>
53
<PAGE>
FORTIS SERIES FUND, INC.
BLUE CHIP STOCK SERIES
Schedule of Investments
June 30, 1997 (Unaudited)
COMMON STOCKS-90.16%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
AEROSPACE AND EQUIPMENT-2.20%
7,300 AlliedSignal, Inc............................ $ 503,451 $ 613,200
2,400 Boeing Co.................................... 124,003 127,350
2,200 Lockheed Martin Corp......................... 187,898 227,837
------------ ------------
815,352 968,387
------------ ------------
APPAREL-0.81%
11,200 Warnaco Group Class A........................ 317,961 357,000
------------ ------------
AUTOMOBILE AND MOTOR VEHICLE PARTS-0.14%
1,400 Lear Corp. (a)............................... 49,123 62,125
------------ ------------
BANKS-5.96%
6,900 Banc One Corp................................ 288,147 334,219
4,300 Chase Manhattan Corp......................... 367,781 417,369
4,000 Citicorp..................................... 417,199 482,250
11,800 Mellon Bank Corp............................. 417,821 532,475
3,600 NationsBank Corp............................. 173,457 232,200
7,700 Norwest Corp................................. 335,137 433,125
700 Wells Fargo & Co............................. 187,871 188,650
------------ ------------
2,187,413 2,620,288
------------ ------------
BEVERAGE-1.02%
800 Coca-Cola Co................................. 40,236 54,000
10,500 PepsiCo, Inc................................. 348,356 394,406
------------ ------------
388,592 448,406
------------ ------------
BIOMEDICS, GENETICS RESEARCH AND DEVELOPMENT-0.36%
2,700 Amgen, Inc. (a).............................. 158,829 156,937
------------ ------------
BUILDING MATERIALS-0.47%
4,900 Masco Corp................................... 177,610 204,575
------------ ------------
BUSINESS SERVICES AND SUPPLIES-2.37%
7,600 ADT Ltd. (a)................................. 164,584 250,800
12,700 First Data Corp.............................. 475,537 558,006
2,000 Omnicom Group, Inc........................... 114,850 123,250
3,600 Wallace Computer Services, Inc............... 113,945 108,225
------------ ------------
868,916 1,040,281
------------ ------------
CABLE TELEVISION-0.55%
12,000 U.S. West Media Group (a).................... 235,550 243,000
------------ ------------
CHEMICALS-2.63%
800 Dow Chemical Co.............................. 67,468 69,700
4,200 Du Pont (E.I.) de Nemours & Co............... 199,391 264,075
7,800 Great Lakes Chemical Corp.................... 398,577 408,525
5,900 Hercules, Inc................................ 261,070 282,462
3,000 Monsanto Co.................................. 113,928 129,187
------------ ------------
1,040,434 1,153,949
------------ ------------
CHEMICALS-SPECIALTY-0.06%
800 Sigma-Aldrich Corp........................... 26,428 28,050
------------ ------------
COMPUTER-COMMUNICATIONS EQUIPMENT-1.52%
3,200 3Com Corp. (a)............................... 147,545 144,000
2,800 Ascend Communications, Inc. (a).............. 158,416 110,250
5,100 Cisco Systems, Inc. (a)...................... 292,325 342,337
600 Dell Computer Corp. (a)...................... 46,726 70,462
------------ ------------
645,012 667,049
------------ ------------
COMPUTER-SOFTWARE-4.65%
5,800 Automatic Data Processing, Inc............... 246,612 272,600
7,600 BMC Software, Inc. (a)....................... 308,809 420,850
3,300 Electronic Data Systems Corp................. 156,676 135,300
2,000 Microsoft Corp. (a).......................... 147,466 252,750
3,800 National Data Corp........................... 142,840 164,587
5,100 Oracle Corp. (a)............................. 215,672 256,912
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
3,400 Parametric Technology Corp. (a).............. $ 151,551 $ 144,712
5,300 Sungard Data Systems, Inc. (a)............... 213,027 246,450
4,000 Synopsys, Inc. (a)........................... 148,662 147,000
------------ ------------
1,731,315 2,041,161
------------ ------------
CONSUMER GOODS-0.90%
3,700 Colgate-Palmolive Co......................... 184,481 241,425
700 Unilever N.V. ADR............................ 132,156 152,600
------------ ------------
316,637 394,025
------------ ------------
CONTAINERS AND PACKAGING-0.57%
4,700 Crown Cork & Seal Company, Inc............... 255,729 251,156
------------ ------------
COSMETICS AND SUNDRIES-1.20%
1,200 Gillette Co.................................. 94,660 113,700
4,500 SmithKline Beecham plc ADR................... 302,439 412,312
------------ ------------
397,099 526,012
------------ ------------
DRUGS-6.46%
4,700 American Home Products Corp.................. 289,538 359,550
7,800 Johnson & Johnson............................ 426,624 502,125
2,200 Lilly (Eli) & Co., Inc....................... 173,098 240,487
5,200 Merck & Co., Inc............................. 431,921 538,200
4,900 Pfizer, Inc.................................. 413,258 585,550
6,800 Schering-Plough Corp......................... 245,260 325,550
2,300 Warner-Lambert Co............................ 180,305 285,775
------------ ------------
2,160,004 2,837,237
------------ ------------
ELECTRICAL EQUIPMENT-1.06%
7,100 General Electric Co.......................... 330,659 464,162
------------ ------------
ELECTRIC PRODUCTS-0.38%
2,200 Honeywell, Inc............................... 125,272 166,925
------------ ------------
ELECTRIC-COMPONENTS AND PARTS-1.06%
6,600 Hubbell, Inc. Class B........................ 255,541 290,400
3,400 Linear Technology Corp....................... 156,668 175,950
------------ ------------
412,209 466,350
------------ ------------
ELECTRONIC-CONTROLS AND EQUIPMENT-0.37%
2,900 Hewlett-Packard Co........................... 144,388 162,400
------------ ------------
ELECTRONIC-SEMICONDUCTOR AND CAPACITOR-2.34%
2,800 Altera Corp. (a)............................. 126,759 141,400
2,500 Intel Corp................................... 295,882 354,531
3,900 Maxim Integrated Products, Inc. (a).......... 170,543 221,813
2,800 Motorola, Inc................................ 178,472 212,800
2,000 Xilinx, Inc. (a)............................. 62,380 98,125
------------ ------------
834,036 1,028,669
------------ ------------
FINANCE SERVICES-7.05%
4,700 American Express Co.......................... 260,887 350,150
2,500 BankBoston Corp.............................. 162,231 180,156
9,100 Fannie Mae................................... 350,628 396,988
13,600 Freddie Mac.................................. 349,684 467,500
4,700 Green Tree Financial Corp.................... 158,323 167,438
6,400 H & R Block, Inc............................. 181,892 206,400
2,200 Household International, Inc................. 189,753 258,363
9,300 Money Store, Inc. (The)...................... 229,364 266,794
1,900 Student Loan Marketing Association........... 200,565 241,300
8,933 Travelers Group, Inc......................... 390,787 563,337
------------ ------------
2,474,114 3,098,426
------------ ------------
FOOD-4.75%
5,000 American Stores Co........................... 223,396 246,875
5,600 Heinz (H.J.) Co.............................. 208,503 258,300
2,900 Interstate Bakeries Corp..................... 103,982 172,006
3,500 McCormick & Company, Inc..................... 85,969 88,375
5,300 Nabisco Holdings Corp. Class A............... 194,738 211,338
</TABLE>
54
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
2,200 Ralston -- RALSTON PURINA GROUP.............. $ 162,133 $ 180,813
7,950 Richfood Holdings, Inc....................... 182,748 206,700
6,900 Safeway, Inc. (a)............................ 292,404 318,263
9,700 Sara Lee Corp................................ 370,687 403,763
------------ ------------
1,824,560 2,086,433
------------ ------------
GLASS AND GLASS PRODUCTS, POTTERY-1.13%
8,900 Corning, Inc................................. 353,462 495,063
------------ ------------
HEALTH CARE SERVICES-2.78%
7,250 Columbia/HCA Healthcare Corp................. 273,830 285,016
10,300 Healthsouth Corp. (a)........................ 223,857 256,856
1,200 McKesson Corp................................ 78,887 93,000
2,400 PacifiCare Health Systems, Inc. Class B
(a)........................................ 192,444 153,300
3,300 United Healthcare Corp....................... 182,331 171,600
6,200 Vencor, Inc. (a)............................. 201,556 261,950
------------ ------------
1,152,905 1,221,722
------------ ------------
HOTEL AND GAMING-0.17%
1,200 ITT Corp. (a)................................ 51,672 73,275
------------ ------------
HOUSEHOLD PRODUCTS-1.49%
7,500 Kimberly-Clark Corp.......................... 344,953 373,125
2,000 Procter & Gamble Co.......................... 207,072 282,500
------------ ------------
552,025 655,625
------------ ------------
INSURANCE-5.38%
7,400 Ace Ltd...................................... 424,386 546,675
1,800 American International Group, Inc............ 207,287 268,875
4,400 Exel Limited................................. 185,276 232,100
5,800 Mid Ocean Ltd................................ 269,916 304,138
4,200 St. Paul Companies, Inc...................... 271,062 320,250
9,500 Travelers Property Casualty Corp............. 302,613 378,813
7,500 UNUM Corp.................................... 263,074 315,000
------------ ------------
1,923,614 2,365,851
------------ ------------
LEISURE TIME-AMUSEMENTS-1.68%
7,400 Carnival Corp. Class A....................... 251,033 305,250
5,400 Disney (Walt) Co............................. 383,322 433,350
------------ ------------
634,355 738,600
------------ ------------
MACHINERY-0.81%
11,400 Teleflex, Inc................................ 287,157 356,250
------------ ------------
MACHINERY-OIL AND WELL-1.03%
4,600 Cooper Cameron Corp. (a)..................... 109,918 215,050
3,000 Halliburton Co............................... 185,752 237,750
------------ ------------
295,670 452,800
------------ ------------
MACHINERY-TOOLS-1.41%
7,700 Danaher Corp................................. 326,293 391,256
3,500 SPX Corp..................................... 165,281 226,844
------------ ------------
491,574 618,100
------------ ------------
MEDICAL SUPPLIES-0.35%
3,900 St. Jude Medical, Inc. (a)................... 135,933 152,100
------------ ------------
MEDICAL TECHNOLOGY-1.28%
4,400 Boston Scientific Corp. (a).................. 232,557 270,325
3,600 Medtronic, Inc. (and rights)................. 232,764 291,600
------------ ------------
465,321 561,925
------------ ------------
METALS-FABRICATING-0.51%
5,600 Newell Co.................................... 179,930 221,900
------------ ------------
METAL & MINING-0.59%
6,700 Newmont Mining Corp.......................... 274,212 261,300
------------ ------------
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
MISCELLANEOUS-2.74%
4,200 Eastman Kodak Co............................. $ 339,663 $ 322,350
2,600 Jones Apparel Group, Inc. (a)................ 77,922 124,150
7,400 Service Corp. International.................. 223,972 243,275
4,800 Stanley Works................................ 175,752 192,000
4,600 Tyco International Ltd....................... 246,905 319,988
------------ ------------
1,064,214 1,201,763
------------ ------------
OFFICE EQUIPMENT AND SUPPLIES-1.75%
2,400 Compaq Computer Corp. (a).................... 204,596 238,200
5,700 IKON Office Solutions, Inc................... 204,003 142,144
4,300 International Business Machines Corp......... 286,426 387,806
------------ ------------
695,025 768,150
------------ ------------
OIL AND GAS FIELD SERVICES-0.48%
1,800 BJ Services Co. (a).......................... 63,332 96,525
2,100 Camco International, Inc..................... 89,901 114,975
------------ ------------
153,233 211,500
------------ ------------
OIL-CRUDE PETROLEUM AND GAS-1.37%
5,000 British Petroleum Co. plc ADR................ 323,183 374,375
2,100 Texaco, Inc.................................. 220,741 228,375
------------ ------------
543,924 602,750
------------ ------------
OIL-REFINING-1.50%
2,800 Atlantic Richfield Co........................ 185,998 197,400
6,600 Mobil Corp................................... 409,044 461,175
------------ ------------
595,042 658,575
------------ ------------
PRECISION INSTRUMENTS-TEST, RESEARCH-0.31%
2,500 Emerson Electric Co.......................... 109,293 137,656
------------ ------------
PRINTING-0.42%
5,000 Donnelley (R.R.) & Sons Co................... 173,582 183,125
------------ ------------
PUBLISHING-1.30%
6,200 Time Warner, Inc............................. 268,758 299,150
5,700 Tribune Co................................... 241,711 273,956
------------ ------------
510,469 573,106
------------ ------------
RAILROAD AND RAILROAD EQUIPMENT-0.51%
2,500 Burlington Northern Santa Fe Corp............ 207,993 224,688
------------ ------------
REAL ESTATE-INVESTMENT TRUST-0.48%
1,800 Patriot American Hospitality, Inc............ 41,897 45,900
3,900 Starwood Lodging Trust....................... 148,523 166,481
------------ ------------
190,420 212,381
------------ ------------
RESTAURANTS AND FRANCHISING-0.56%
5,100 McDonald's Corp.............................. 239,073 246,394
------------ ------------
RETAIL-CLOTHING-0.14%
1,600 Gap, Inc..................................... 46,598 62,200
------------ ------------
RETAIL-DEPARTMENT STORES-1.86%
7,500 Federated Department Stores, Inc. (a)........ 255,671 260,625
3,900 Kohl's Corp. (a)............................. 150,889 206,456
3,800 Neiman-Marcus Group, Inc. (a)................ 98,869 99,750
7,400 Wal-Mart Stores, Inc......................... 215,194 250,213
------------ ------------
720,623 817,044
------------ ------------
RETAIL-ELECTRIC PRODUCTS, RADIO, TV, AUDIO-0.10%
1,200 Circuit City Stores, Inc..................... 37,803 42,675
------------ ------------
RETAIL-MISCELLANEOUS-0.85%
11,450 Corporate Express, Inc. (a).................. 171,022 165,309
4,071 CVS Corp..................................... 139,899 208,639
------------ ------------
310,921 373,948
------------ ------------
</TABLE>
55
<PAGE>
FORTIS SERIES FUND, INC.
BLUE CHIP STOCK SERIES (CONTINUED)
Schedule of Investments
June 30, 1997 (Unaudited)
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
RETAIL-SPECIALTY-1.89%
11,950 CUC International, Inc. (a).................. $ 289,320 $ 308,459
9,100 General Nutrition Companies, Inc. (a)........ 191,127 254,800
3,900 Home Depot, Inc.............................. 214,805 268,856
------------ ------------
695,252 832,115
------------ ------------
SHOES AND LEATHER-0.05%
400 Nike, Inc. Class B........................... 27,176 23,350
------------ ------------
TELECOMMUNICATIONS-0.60%
2,200 Lucent Technologies, Inc..................... 128,426 158,538
1,400 Nokia Corp. Class A ADR...................... 90,201 103,250
------------ ------------
218,627 261,788
------------ ------------
TELECOMMUNICATION EQUIPMENT-0.11%
900 Tellabs, Inc.(a)............................. 30,176 50,288
------------ ------------
TELEPHONE SERVICES-0.95%
5,500 Alltel Corp.................................. 177,522 183,906
7,200 WorldCom, Inc. (a)........................... 196,139 230,400
------------ ------------
373,661 414,306
------------ ------------
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
TOBACCO-1.21%
12,000 Philip Morris Companies, Inc................. $ 458,441 $ 532,500
------------ ------------
TOYS-0.85%
11,000 Mattel, Inc.................................. 288,310 372,625
------------ ------------
UTILITIES-TELEPHONE-2.21%
2,900 AT & T Corp.................................. 109,163 101,681
4,800 MCI Communications Corp...................... 149,451 183,750
6,500 SBC Communications, Inc...................... 344,397 402,188
2,200 Sprint Corp.................................. 104,037 115,775
3,500 Vodafone Group plc ADR....................... 140,145 169,531
------------ ------------
847,193 972,925
------------ ------------
WASTE DISPOSAL-0.43%
4,900 U.S.A. Waste Services, Inc. (a).............. 158,316 189,263
------------ ------------
TOTAL COMMON STOCKS.......................... $ 33,410,437 $ 39,612,629
------------ ------------
------------ ------------
</TABLE>
SHORT-TERM INVESTMENTS-10.36%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
----------- ------------
<C> <S> <C>
INVESTMENT COMPANY-1.32%
$ 578,462 First American Prime Obligation Fund, Current
rate -- 5.32%.............................. $ 578,462
------------
FINANCE COMPANIES-2.21%
480,000 Metlife Funding Inc., 5.68%, 8-4-1997........ 477,410
495,000 RTZ America, Inc., 5.70%, 7-8-1997 (e)....... 494,387
------------
971,797
------------
FOOD-GROCERY, MISCELLANEOUS-2.31%
715,000 Archer Daniels Midland, 5.61%, 7-8-1997...... 714,123
300,000 Archer Daniels Midland, 5.69%, 7-15-1997..... 299,300
------------
1,013,423
------------
U.S. GOVERNMENT AGENCY-0.44%
95,000 Federal Home Loan Mortgage Corp., 5.57%,
8-4-1997................................... 94,497
101,000 Federal Home Loan Mortgage Corp., 5.66%,
7-25-1997.................................. 100,613
93,000 Federal Home Loan Mortgage Corp., 5.60%,
8-12-1997.................................. 92,392
------------
287,502
------------
UTILITIES-TELEPHONE-4.09%
1,800,000 France Telecon, 5.63%, 7-17-1997............. 1,795,300
------------
TOTAL SHORT-TERM INVESTMENTS................. $ 4,646,484
------------
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$38,056,921) (B)........................... $44,259,113
------------
------------
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 1997, the cost of securities for federal income tax purposes
was $38,060,405, and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 6,621,157
Unrealized depreciation..................................... (422,449)
- -------------------------------------------------------------------------
Net unrealized appreciation................................. $ 6,198,708
- -------------------------------------------------------------------------
</TABLE>
(c) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets. Market value of investments in foreign
securities represents 3.98% of net assets as of June 30, 1997.
(e) Commercial paper sold within the terms of private placement memorandums,
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". This security has been determined to be illiquid
under the guidelines established by the board of directors.
56
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL GROWTH SERIES
Schedule of Investments
June 30,1997 (Unaudited)
COMMON STOCKS-88.51%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
----------- ------------- -------------
<C> <S> <C> <C>
ARGENTINA-1.66%
150,000 Disco S.A. ADR (a) -- RETAIL-GROCERY......... $ 2,364,750 $ 5,943,750
------------- -------------
AUSTRIA-2.11%
46,800 OMV Aktiengesellschaft (e) -- OIL-CRUDE
PETROLEUM AND GAS.......................... 4,739,434 5,996,090
16,000 Wolford AG -- APPAREL........................ 1,830,831 1,552,890
------------- -------------
6,570,265 7,548,980
------------- -------------
BELGIUM-1.70%
30,000 Barco N.V. -- TELECOMMUNICATION EQUIPMENT.... 3,715,162 6,083,448
------------- -------------
BERMUDA-0.60%
82,000 Central European Media Enterprises Ltd. Class
A (a) -- BROADCASTING...................... 2,255,000 2,132,000
------------- -------------
BRAZIL-1.56%
24,000 Telebras ADR -- UTILITIES-TELEPHONE (g)...... 1,514,978 3,642,000
52,000 Uniao de Bancos Brasileiros S.A. GDR -- BANKS
(g)........................................ 1,755,000 1,930,500
------------- -------------
3,269,978 5,572,500
------------- -------------
CHILE-0.77%
69,100 Santa Isabel S.A. ADR -- RETAIL-GROCERY
(g)........................................ 1,469,920 2,228,475
28,000 Supermercados Unimarc S.A. ADR
(a) -- RETAIL-GROCERY (g).................. 469,000 525,000
------------- -------------
1,938,920 2,753,475
------------- -------------
CHINA-0.33%
45,500 China Eastern Airlines ADR (a) -- AIRLINES
(g)........................................ 819,000 1,183,000
------------- -------------
FINLAND-3.52%
50,000 Amer Group Ltd.(a) -- DIVERSIFIED
COMPANIES.................................. 1,029,160 900,033
66,100 KCI Konecranes International Corp.
(e) -- MACHINERY........................... 1,369,093 2,901,436
118,000 Nokia (AB) K Shares -- TELECOMMUNICATION
EQUIPMENT.................................. 2,084,562 8,791,636
------------- -------------
4,482,815 12,593,105
------------- -------------
FRANCE-3.00%
21,000 Cipe Group France -- BUSINESS SERVICES AND
SUPPLIES................................... 2,940,144 2,718,476
55,000 Compagnie Generale de Geophysique ADR
(a) -- OIL AND GAS FIELD SERVICES.......... 935,000 1,058,750
10,000 Pathe S.A. -- BROADCASTING................... 2,339,579 1,986,055
34,000 Sanofi S.A. -- DRUGS......................... 1,996,096 3,335,754
65,000 Stolt Comex Seaway S.A. (a) -- OIL-OFFSHORE
DRILLING................................... 1,144,363 1,649,375
------------- -------------
9,355,182 10,748,410
------------- -------------
GERMANY-3.01%
165,000 Phoenix AG -- AUTOMOBILE AND MOTOR VEHICLE
PARTS...................................... 2,587,281 2,992,194
57,000 SGL Carbon AG -- STEEL AND IRON.............. 2,708,232 7,791,756
------------- -------------
5,295,513 10,783,950
------------- -------------
HONG KONG-2.23%
1,900,000 First Pacific Co. Ltd. -- DIVERSIFIED
COMPANIES.................................. 2,212,214 2,427,949
1,400,000 Hong Kong Land Holdings Ltd. -- REAL
ESTATE..................................... 3,833,101 3,724,000
210,000 Hutchison Whampoa Ltd. -- DIVERSIFIED
COMPANIES.................................. 1,379,712 1,816,121
------------- -------------
7,425,027 7,968,070
------------- -------------
HUNGARY-1.49%
240,000 MOL Magyar Olaj-es Gazipari Rt.
GDR -- OIL-REFINING........................ 1,944,000 5,321,785
------------- -------------
INDIA-0.25%
38,000 Indian Hotels Co. Ltd. (The) GDR
(a)(f) -- HOTEL AND GAMING................. 630,800 902,500
------------- -------------
IRELAND-0.05%
7,000 Ryanair Holdings plc ADR -- AIRLINES (g)..... 103,110 189,875
------------- -------------
</TABLE>
57
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL GROWTH SERIES (CONTINUED)
Schedule of Investments
June 30,1997 (Unaudited)
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
----------- ------------- -------------
<C> <S> <C> <C>
ISRAEL-2.16%
84,000 ECI Telecommunications
Ltd. -- TELECOMMUNICATION EQUIPMENT (g).... $ 1,662,746 $ 2,499,000
81,000 Teva Pharmaceutical Industries Ltd.
ADR -- DRUGS (g)........................... 2,755,500 5,244,750
------------- -------------
4,418,246 7,743,750
------------- -------------
ITALY-1.15%
82,700 Fila Holdings S.p.A. ADR -- SHOES AND LEATHER
(g)........................................ 1,943,696 2,765,281
52,000 Industrie Natuzzi S.p.A. ADR -- FURNITURE.... 765,795 1,332,500
------------- -------------
2,709,491 4,097,781
------------- -------------
JAPAN-5.50%
30,000 Autobacs Seven Co.
Ltd. -- RETAIL-MISCELLANEOUS............... 2,959,769 2,380,494
27,000 Canon, Inc. ADR -- OFFICE EQUIPMENT AND
SUPPLIES................................... 2,113,634 3,685,500
230 DDI Corp. -- TELEPHONE SERVICES.............. 1,863,283 1,700,428
165,000 Laox Co. Ltd. -- RETAIL-ELECTRIC PRODUCTS,
RADIO, TV, AUDIO........................... 3,259,298 2,321,506
16,700 Matsushita Electric Industrial Co. Ltd.
ADR -- ELECTRONIC-CONTROLS AND EQUIPMENT... 2,772,445 3,415,150
369 Nippon Telegraph & Telephone
Corp. -- TELEPHONE SERVICES................ 3,179,997 3,547,146
30,000 Sony Corp. -- ELECTRONIC-CONTROLS AND
EQUIPMENT.................................. 1,951,042 2,619,068
------------- -------------
18,099,468 19,669,292
------------- -------------
MEXICO-0.62%
68,000 Panamerican Beverages, Inc. Class
A -- BEVERAGE.............................. 1,189,321 2,235,500
------------- -------------
NETHERLANDS-3.69%
30,000 Gucci Group N.V. -- RETAIL-MISCELLANEOUS
(g)........................................ 660,000 1,931,250
42,000 IHC Caland N.V. -- MACHINERY-OIL AND WELL.... 955,247 2,300,081
28,000 ING Groep N.V. -- FINANCE SERVICES........... 1,300,719 1,293,305
45,000 Randstad Holdings N.V. -- BUSINESS SERVICES
AND SUPPLIES............................... 1,260,270 4,754,196
24,000 Wolters Kluwer N.V. -- PUBLISHING............ 1,404,741 2,927,543
------------- -------------
5,580,977 13,206,375
------------- -------------
NORWAY-1.62%
118,700 Petroleum Geo-Services ADR
(a) -- MACHINERY-OIL AND WELL.............. 3,323,284 5,801,462
------------- -------------
PORTUGAL-0.54%
14,000 Electricidade De Portugal
(a) -- UTILITIES-ELECTRIC (g).............. 361,760 504,000
35,800 Portugal Telecom S.A.
ADR -- UTILITIES-TELEPHONE................. 818,674 1,436,475
------------- -------------
1,180,434 1,940,475
------------- -------------
SPAIN-2.10%
35,000 Repsol S.A. -- OIL-CRUDE PETROLEUM AND GAS... 1,448,791 1,482,627
70,000 Telefonica de Espana, S.A.
ADR -- UTILITIES-TELEPHONE (g)............. 4,919,131 6,037,500
------------- -------------
6,367,922 7,520,127
------------- -------------
SWEDEN-3.52%
138,000 Ericsson (L.M.) Telephone Co. Class B
ADR -- TELECOMMUNICATION EQUIPMENT......... 2,352,375 5,433,750
95,000 Hoganas AB Class B -- MISCELLANEOUS.......... 2,474,103 3,163,645
208,000 Industri Matematik International Corp.
(a) -- COMPUTER-SOFTWARE................... 1,974,108 3,380,000
35,500 WM Data AB Class B -- BUSINESS SERVICES AND
SUPPLIES................................... 197,037 624,387
------------- -------------
6,997,623 12,601,782
------------- -------------
SWITZERLAND-1.96%
2,667 Novartis AG -- DRUGS......................... 3,059,226 4,269,834
300 Roche Holdings AG, Genusschein
NVP -- DRUGS............................... 1,568,202 2,717,358
------------- -------------
4,627,428 6,987,192
------------- -------------
UNITED KINGDOM-3.99%
800,000 Avis Europe plc (a) -- BUSINESS SERVICES AND
SUPPLIES................................... 1,650,954 1,817,416
491,700 Capita Group plc -- BUSINESS SERVICES AND
SUPPLIES................................... 1,050,020 1,927,183
100,000 Dr. Solomon's Group plc ADR
(a) -- COMPUTER-SOFTWARE (g)............... 1,981,250 2,537,500
63,000 Glaxo Wellcome plc ADR -- DRUGS (g).......... 2,318,473 2,634,187
53,000 Norwich Union plc (e) -- INSURANCE........... 251,960 281,824
</TABLE>
58
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
----------- ------------- -------------
<C> <S> <C> <C>
675,000 Orange plc -- TELEPHONE SERVICES............. $ 2,141,022 $ 2,229,955
260,000 Powerscreen International
plc -- CONSTRUCTION........................ 1,304,787 2,832,140
------------- -------------
10,698,466 14,260,205
------------- -------------
UNITED STATES-39.38%
221,000 3Com Corp. (a) -- COMPUTER-COMMUNICATIONS
EQUIPMENT (g).............................. 2,788,487 9,945,000
150,000 AccuStaff, Inc. (a) -- BUSINESS SERVICES AND
SUPPLIES (g)............................... 3,418,110 3,553,125
66,000 Altera Corp. (a) -- ELECTRONIC-SEMICONDUCTOR
AND CAPACITOR (g).......................... 1,388,406 3,333,000
49,900 American Oncology Resources, Inc.
(a) -- HEALTH CARE SERVICES................ 548,900 842,063
141,500 ANSYS, Inc. (a) -- COMPUTER-SOFTWARE......... 1,734,475 1,114,312
192,500 Apple South, Inc. -- RESTAURANTS AND
FRANCHISING (g)............................ 2,430,573 2,935,625
85,000 Applebees International, Inc. -- RESTAURANTS
AND FRANCHISING (g)........................ 1,454,875 2,273,750
18,000 AutoZone, Inc. (a) -- RETAIL-SPECIALTY (g)... 415,780 424,125
75,000 Avant! Corp. (a) -- COMPUTER-SOFTWARE (g).... 1,945,445 2,423,437
112,000 Bed, Bath & Beyond, Inc.
(a) -- RETAIL-SPECIALTY (g)................ 1,601,689 3,402,000
115,500 Blyth Industries, Inc. (a) -- CONSUMER GOODS
(g)........................................ 3,510,585 3,898,125
49,000 Camco International, Inc. -- OIL AND GAS
FIELD SERVICES (g)......................... 2,097,316 2,682,750
76,000 Cheesecake Factory, Inc. (a) -- RESTAURANTS
AND FRANCHISING (g)........................ 1,962,425 1,596,000
80,000 Cisco Systems, Inc.
(a) -- COMPUTER-COMMUNICATIONS EQUIPMENT... 917,000 5,370,000
125,000 Covance, Inc. (a) -- BUSINESS SERVICES AND
SUPPLIES (g)............................... 2,469,913 2,414,062
148,000 Credit Acceptance Corp. (a) -- FINANCE
SERVICES (g)............................... 3,167,200 1,905,500
134,000 CUC International, Inc.
(a) -- RETAIL-SPECIALTY (g)................ 2,901,252 3,458,875
135,000 Data Processing Resources Corp.
(a) -- BUSINESS SERVICES AND SUPPLIES...... 2,708,975 3,155,625
225,000 DSP Communications, Inc. (a) -- ELECTRONIC
COMPONENTS................................. 3,833,816 2,475,000
42,000 ENSCO International, Inc. (a) -- OIL-OFFSHORE
DRILLING (g)............................... 2,096,396 2,215,500
60,000 Falcon Drilling Co. (a) -- OIL-OFFSHORE
DRILLING................................... 2,081,252 3,457,500
260,000 Gartner Group, Inc. Class A (a) -- BUSINESS
SERVICES AND SUPPLIES (g).................. 1,300,000 9,343,750
90,000 Green Tree Financial Corp. -- FINANCE
SERVICES (g)............................... 2,972,661 3,206,250
85,000 HCIA, Inc. (a) -- HEALTH CARE SERVICES....... 2,889,315 2,847,500
130,000 Input/Output, Inc. (a) -- MACHINERY-OIL AND
WELL....................................... 934,975 2,356,250
53,000 Interim Services, Inc. (a) -- BUSINESS
SERVICES AND SUPPLIES...................... 2,292,250 2,358,500
57,900 LCI International, Inc. (a) -- TELEPHONE
SERVICES (g)............................... 1,631,293 1,266,563
28,000 Motorola, Inc. -- ELECTRONIC-SEMICONDUCTOR
AND CAPACITOR (g).......................... 1,925,647 2,128,000
72,000 Oracle Corp. (a) -- COMPUTER-SOFTWARE (g).... 968,000 3,627,000
49,000 Outback Steakhouse, Inc. (a) -- RESTAURANTS
AND FRANCHISING (g)........................ 1,296,331 1,185,188
100,000 Parametric Technology Corp.
(a) -- COMPUTER-SOFTWARE................... 1,506,616 4,256,250
146,400 PetsMart, Inc. (a) -- RETAIL-MISCELLANEOUS... 3,178,808 1,683,600
35,000 Polo Ralph Lauren Corp. (a) -- APPAREL....... 910,000 958,125
55,800 R.P. Scherer Corp. (a) -- DRUGS.............. 2,548,570 2,880,675
100,000 Service Corp. International -- MISCELLANEOUS
(g)........................................ 2,209,570 3,287,500
90,000 Steris Corp. (a) -- MEDICAL SUPPLIES (g)..... 1,526,528 3,363,750
52,500 Sykes Enterprises, Inc. (a) -- BUSINESS
SERVICES AND SUPPLIES (g).................. 1,412,906 1,365,000
88,000 Synopsys, Inc. (a) -- COMPUTER-SOFTWARE
(g)........................................ 2,059,256 3,234,000
120,000 Tellabs, Inc.(a) -- TELECOMMUNICATION
EQUIPMENT.................................. 1,613,430 6,705,000
55,000 Tommy Hilfiger Corp. (a) -- APPAREL (g)...... 2,159,675 2,210,312
51,000 Total Renal Care Holdings (a) -- HEALTH CARE
SERVICES................................... 1,738,832 2,049,563
39,000 Transocean Offshore, Inc. -- OIL-OFFSHORE
DRILLING................................... 2,137,040 2,832,375
102,000 Vans, Inc. (a) -- SHOES AND LEATHER.......... 1,643,250 1,542,750
60,000 Viking Office Products, Inc.
(a) -- RETAIL-SPECIALTY.................... 896,730 1,140,000
37,500 Western Atlas, Inc. (a) -- OIL AND GAS FIELD
SERVICES................................... 1,713,488 2,746,875
171,000 Wisconsin Central Transportation Corp.
(a) -- TRANSPORTATION (g).................. 1,943,225 6,369,750
40,000 Xilinx, Inc. (a) -- ELECTRONIC-SEMICONDUCTOR
AND CAPACITOR.............................. 541,220 1,962,500
66,800 Xylan Corp. (a) -- COMPUTER-COMMUNICATIONS
EQUIPMENT (g).............................. 2,244,617 1,135,600
------------- -------------
93,667,103 140,918,000
------------- -------------
TOTAL COMMON STOCKS.......................... $ 209,029,285 $ 316,706,789
------------- -------------
------------- -------------
</TABLE>
59
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL GROWTH SERIES (CONTINUED)
Schedule of Investments
June 30,1997 (Unaudited)
PREFERRED STOCKS-3.59%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
-------- ------------- -------------
<C> <S> <C> <C>
BRAZIL-0.71%
93,000 Petroleo Brasileiro S.A. ADR
Preferred -- OIL-CRUDE PETROLEUM AND GAS
(g)........................................ $ 2,104,124 $ 2,548,414
------------- -------------
GERMANY-2.88%
50,000 SAP AG Systeme
Preferred -- COMPUTER-SOFTWARE............. 1,788,207 10,315,437
------------- -------------
TOTAL PREFERRED STOCKS....................... $ 3,892,331 $ 12,863,851
------------- -------------
------------- -------------
TOTAL LONG-TERM INVESTMENTS.................. $ 212,921,616 $ 329,570,640
------------- -------------
------------- -------------
</TABLE>
SHORT-TERM INVESTMENTS-7.69%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
------------ -------------
<C> <S> <C>
BANKS-2.63%
$ 9,396,000 First Trust Money Market Variable Rate Time
Deposit, Current rate -- 5.44%............. $ 9,396,000
-------------
DIVERSIFIED FINANCE-1.47%
5,277,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.42%...................... 5,277,000
-------------
U.S. GOVERNMENT AGENCY-3.59%
12,900,000 Federal National Mortgage Association, 5.52%,
7-24-1997.................................. 12,853,388
-------------
TOTAL SHORT-TERM INVESTMENTS................. $ 27,526,388
-------------
-------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$240,448,004) (b).......................... $ 357,097,028
-------------
-------------
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 1997, the cost of securities for federal income tax purposes
was $240,448,004 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $126,483,998
Unrealized depreciation..................................... (9,834,974)
- --------------------------------------------------------------------------
Net unrealized appreciation................................. $116,649,024
- --------------------------------------------------------------------------
</TABLE>
(c) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets.
(e) Securities sold within the terms of private placement memorandums, exempt
from registration under section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program of other
"accredited investors". These investments have been identified by portfolio
management as illiquid securities:
<TABLE>
<CAPTION>
DATE ACQUIRED SHARES SECURITY COST BASIS
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------
March 19, 1996 and July 12, 1996 66,100 KCI Konecranes International Corp. $1,369,093
June 16, 1997 53,000 Norwich Union plc 251,960
May 22, 1996 46,800 OMV Aktiengesellschaft 4,739,434
The value of these securities at June 30, 1997 is $9,179,350 which represents 2.57% of net
assets.
</TABLE>
(f) Securities sold within the terms of private placement memorandums, exempt
from registration under section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program of other
"accredited investors". Pursuant to guidelines adopted by the Board of
Directors, these issues are determined to be liquid. The value of this
security on June 30, 1997, is $902,500 which represents .25% of total net
assets.
(g) Security is fully or partially on loan at June 30, 1997. See Note 1 of
accompanying Notes to Financial Statements.
60
<PAGE>
FORTIS SERIES FUND, INC.
GROWTH STOCK SERIES
Schedule of Investments
June 30, 1997 (Unaudited)
COMMON STOCKS-84.72%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
----------- ------------- -------------
<C> <S> <C> <C>
APPAREL-1.21%
209,000 Tommy Hilfiger Corp.(a)...................... $ 7,768,525 $ 8,399,187
------------- -------------
BANKS-1.79%
256,498 Banc One Corp................................ 6,370,511 12,424,122
------------- -------------
BIOMEDICS, GENETICS RESEARCH AND DEVELOPMENT-2.50%
265,200 BioChem Pharma, Inc. (a)..................... 5,891,273 5,900,700
165,000 Biogen, Inc. (a)............................. 4,408,687 5,589,375
213,400 Genzyme Corp. (a)............................ 6,458,318 5,921,850
------------- -------------
16,758,278 17,411,925
------------- -------------
BUSINESS SERVICES AND SUPPLIES-3.19%
320,500 AccuStaff, Inc. (a).......................... 8,124,588 7,591,844
165,000 Danka Business Systems plc ADR............... 7,032,482 6,744,375
179,206 First Data Corp.............................. 3,774,569 7,873,864
------------- -------------
18,931,639 22,210,083
------------- -------------
COMPUTER-COMMUNICATIONS EQUIPMENT-4.84%
147,900 3Com Corp. (a)............................... 1,802,799 6,655,500
110,100 Ascend Communications, Inc. (a).............. 4,243,370 4,335,187
121,200 Cascade Communications Corp. (a) 5,795,204 3,348,150
287,400 Cisco Systems, Inc. (a)...................... 3,193,381 19,291,725
------------- -------------
15,034,754 33,630,562
------------- -------------
COMPUTER-SOFTWARE-13.00%
400,800 BMC Software, Inc. (a)....................... 5,037,454 22,194,300
163,200 Microsoft Corp. (a).......................... 3,519,623 20,624,400
409,400 Oracle Corp. (a)............................. 1,598,467 20,623,525
331,800 Parametric Technology Corp. (a).............. 5,818,043 14,122,237
288,419 Sterling Commerce, Inc. (a).................. 2,797,559 9,481,775
105,300 Sterling Software, Inc. (a).................. 1,047,833 3,290,625
------------- -------------
19,818,979 90,336,862
------------- -------------
ELECTRONIC COMPONENTS-2.28%
226,500 Solectron Corp. (a).......................... 6,303,859 15,869,156
------------- -------------
ELECTRONIC-SEMICONDUCTOR AND CAPACITOR-1.53%
75,000 Intel Corp................................... 3,206,523 10,635,937
------------- -------------
FINANCE SERVICES-8.61%
60,000 American Express Co.......................... 3,462,054 4,470,000
254,800 Capital One Financial Corp................... 7,706,421 9,618,700
304,000 Fannie Mae................................... 7,588,481 13,262,000
150,000 Franklin Resources, Inc...................... 3,604,950 10,884,375
336,000 Green Tree Financial Corp.................... 11,199,081 11,970,000
262,500 MBNA Corp.................................... 6,585,103 9,614,062
------------- -------------
40,146,090 59,819,137
------------- -------------
HEALTH CARE SERVICES-8.02%
182,000 HBO & Co..................................... 6,260,504 12,535,250
436,000 Medpartners, Inc. (a)........................ 11,146,904 9,428,500
247,000 Oxford Health Plans, Inc. (a)................ 6,932,431 17,722,250
85,000 PacifiCare Health Systems, Inc. Class B
(a)........................................ 6,508,525 5,429,375
157,400 PhyCor, Inc. (a)............................. 4,861,954 5,420,462
99,600 United Healthcare Corp....................... 4,296,512 5,179,200
------------- -------------
40,006,830 55,715,037
------------- -------------
HOTEL AND GAMING-1.32%
130,000 HFS, Inc. (a)................................ 7,719,704 7,540,000
43,050 Promus Hotel Corp. (a)....................... 944,539 1,668,188
------------- -------------
8,664,243 9,208,188
------------- -------------
<CAPTION>
Market
Shares Cost (b) Value (c)
----------- ------------- -------------
<C> <S> <C> <C>
MACHINERY-OIL AND WELL-4.70%
130,400 Cooper Cameron Corp. (a)..................... $ 4,974,582 $ 6,096,200
105,000 Dresser Industries, Inc...................... 3,692,556 3,911,250
313,000 Input/Output, Inc. (a)....................... 7,133,893 5,673,125
347,100 Petroleum Geo-Services ADR (a)............... 9,028,922 16,964,513
------------- -------------
24,829,953 32,645,088
------------- -------------
MEDICAL SUPPLIES-0.90%
167,000 Steris Corp. (a)............................. 5,690,284 6,241,625
------------- -------------
MEDICAL TECHNOLOGY-1.95%
167,500 Medtronic, Inc. (and rights)................. 10,062,362 13,567,500
------------- -------------
OIL AND GAS FIELD SERVICES-1.66%
65,000 Schlumberger Ltd............................. 6,369,408 8,125,000
56,700 Smith International, Inc. (a)................ 2,160,444 3,444,525
------------- -------------
8,529,852 11,569,525
------------- -------------
OIL-OFFSHORE DRILLING-3.91%
94,000 ENSCO International, Inc. (a)................ 4,541,850 4,958,500
211,300 Falcon Drilling Co. (a)...................... 7,257,710 12,176,163
186,000 Noble Drilling Corp. (a)..................... 3,278,224 4,196,625
80,300 Transocean Offshore, Inc..................... 5,022,892 5,831,788
------------- -------------
20,100,676 27,163,076
------------- -------------
RESTAURANTS AND FRANCHISING-2.26%
258,400 Lone Star Steakhouse & Saloon, Inc. (a)...... 4,816,875 6,718,400
231,700 Starbucks Corp. (a).......................... 3,921,277 9,021,819
------------- -------------
8,738,152 15,740,219
------------- -------------
RETAIL-DEPARTMENT STORES-0.65%
85,400 Kohl's Corp. (a)............................. 1,372,378 4,520,863
------------- -------------
RETAIL-SPECIALTY-7.59%
435,550 CUC International, Inc. (a).................. 6,630,267 11,242,634
109,000 Dollar Tree Stores, Inc. (a)................. 5,286,500 5,490,875
157,200 Home Depot, Inc.............................. 6,274,227 10,836,975
108,975 Office Depot, Inc. (a)....................... 1,769,862 2,118,202
160,000 Pep Boys-Manny Moe & Jack.................... 3,807,194 5,450,000
173,000 Republic Industries, Inc. (a)................ 5,922,493 4,303,375
463,125 Staples, Inc. (a)............................ 6,211,573 10,767,656
97,600 West Marine, Inc. (a)........................ 3,360,947 2,513,200
------------- -------------
39,263,063 52,722,917
------------- -------------
TELECOMMUNICATION EQUIPMENT-6.96%
293,800 ADC Telecommunications, Inc. (a)............. 4,771,039 9,805,575
244,250 Andrew Corp. (with rights) (a)............... 5,441,561 6,869,531
140,000 QUALCOMM, Inc. (a)........................... 5,296,387 7,122,500
439,800 Tellabs, Inc.(a)............................. 2,975,820 24,573,825
------------- -------------
18,484,807 48,371,431
------------- -------------
TELEPHONE SERVICES-4.96%
24,300 Pacific Gateway Exchange, Inc. (a) 678,728 686,475
1,054,700 WorldCom, Inc. (a)........................... 13,057,479 33,750,400
------------- -------------
13,736,207 34,436,875
------------- -------------
TRANSPORTATION-0.89%
165,300 Wisconsin Central Transportation Corp. (a)... 5,955,836 6,157,425
------------- -------------
TOTAL COMMON STOCKS.......................... $ 339,773,801 $ 588,796,740
------------- -------------
------------- -------------
</TABLE>
61
<PAGE>
FORTIS SERIES FUND, INC.
GROWTH STOCK SERIES (CONTINUED)
Schedule of Investments
June 30, 1997 (Unaudited)
SHORT-TERM INVESTMENTS-15.51%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
------------ -------------
<C> <S> <C>
BANKS-4.80%
$33,341,595 First Trust Money Market Variable Rate Time
Deposit, Current rate -- 5.44%............. $ 33,341,595
-------------
DIVERSIFIED FINANCE-0.86%
5,991,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.42%...................... 5,991,000
-------------
U.S. GOVERNMENT AGENCY-9.85%
4,600,000 Federal National Mortgage Association, 5.49%,
7-23-1997.................................. 4,584,159
20,000,000 Federal Home Loan Mortgage Corp., 5.53%,
7-14-1997.................................. 19,957,767
10,300,000 Federal Home Loan Mortgage Corp., 5.52%,
7-24-1997.................................. 10,262,783
20,100,000 Federal Home Loan Mortgage Corp., 5.50%,
7-15-1997.................................. 20,054,692
13,600,000 Federal National Mortgage Association, 5.54%,
7-17-1997.................................. 13,565,063
-------------
68,424,464
-------------
TOTAL SHORT-TERM INVESTMENTS................. $ 107,757,059
-------------
-------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$447,530,860) (b).......................... $ 696,553,799
-------------
-------------
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 1997, the cost of securities for federal income tax purposes
was $447,530,860 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $261,370,180
Unrealized depreciation..................................... (12,347,241)
- --------------------------------------------------------------------------
Net unrealized appreciation................................. $249,022,939
- --------------------------------------------------------------------------
</TABLE>
(c) See Note 1 of accompanying Notes to Financial Statements regarding
valuations 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 4.58% of net assets as of June 30, 1997.
62
<PAGE>
FORTIS SERIES FUND, INC.
INTERNATIONAL STOCK SERIES
Schedule of Investments
June 30,1997 (Unaudited)
COMMON STOCKS-90.71%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
--------- ------------ ------------
<C> <S> <C> <C>
AUSTRALIA-1.99%
232,100 Westpac Banking Corp. Ltd. -- BANKS.......... $ 1,028,824 $ 1,385,796
------------ ------------
DENMARK-0.94%
11,600 Unidanmark A/S "A" Registered -- BANKS....... 535,884 652,539
------------ ------------
FINLAND-0.57%
1 Rauma OY -- PAPER............................ 14 15
17,300 UPM -- KYMMENE CORP. -- PAPER................ 354,420 399,672
------------ ------------
354,434 399,687
------------ ------------
FRANCE-11.76%
8,810 Alcatel Alsthom CIE Generale D'Electricite
S.A. -- TELECOMMUNICATIONS................. 780,219 1,104,451
27,100 Banque Nationale de Paris -- BANKS........... 1,112,619 1,117,985
10,500 CIE Generale Des
Eaux -- TELECOMMUNICATIONS................. 1,214,399 1,346,719
10,500 CIE Gen DeEaux (Warrants).................... 0 6,295
5,360 Compagnie De Saint-Gobain -- BUILDING
MATERIALS.................................. 699,733 782,417
14,500 Elf Aquitaine -- OIL-CRUDE PETROLEUM AND
GAS........................................ 1,199,808 1,565,849
4,000 Havas S.A. -- ADVERTISING-PUBLIC RELATIONS... 307,343 288,540
39,788 Rhone Poulenc -- BUILDING MATERIALS.......... 1,056,951 1,626,507
3,505 Total S.A. Co. Francaise Petroles
"B" -- OIL-CRUDE PETROLEUM AND GAS......... 259,566 354,623
------------ ------------
6,630,638 8,193,386
------------ ------------
GERMANY-12.12%
14,500 Daimler Benz AG -- AUTOMOBILE
MANUFACTURERS.............................. 866,669 1,180,780
23,700 Deutsche Bank AG -- BANKS.................... 1,156,064 1,392,730
29,800 Hoechst AG -- CHEMICALS...................... 892,485 1,263,803
2,660 Mannesmann AG -- MACHINERY................... 958,511 1,189,153
30,200 Metallgesellschaft AG (a) -- METAL &
MINING..................................... 639,636 624,785
6,000 Metro AG -- CONSUMER GOODS................... 547,919 654,220
3,100 Thyssen AG -- STEEL AND IRON................. 613,816 746,298
3,050 Viag AG -- ELECTRIC PRODUCTS................. 1,242,986 1,394,133
------------ ------------
6,918,086 8,445,902
------------ ------------
HONG KONG-2.67%
34,005 HSBC Holdings plc -- BANKS................... 524,038 1,022,703
93,000 Swire Pacific Ltd. "A" -- TRANSPORTATION..... 796,384 837,294
------------ ------------
1,320,422 1,859,997
------------ ------------
ITALY-3.30%
170,200 Ente Nazionale Idrocarbuiri
S.p.A. -- OIL-REFINING..................... 822,730 962,783
190,500 INA Istituto Nazionale
Assicurazioni -- INSURANCE................. 279,621 289,976
301,600 Stet Societa' Finanziaria Telefonica
S.p.A. -- TELECOMMUNICATIONS............... 1,084,538 1,045,807
------------ ------------
2,186,889 2,298,566
------------ ------------
JAPAN-21.51%
19,000 Honda Motor -- AUTOMOBILE MANUFACTURERS...... 474,275 572,839
13,000 Ito-Yokado Co. Ltd. -- FOOD.................. 607,001 755,483
86,000 Matsushita Electric Industrial
Co. -- ELECTRIC PRODUCTS................... 1,541,726 1,736,083
145,000 Mitsubishi Heavy Industries
Ltd. -- AUTOMOBILE MANUFACTURERS........... 1,115,010 1,113,825
34,000 Mitsui Marine & Fire Ins. -- INSURANCE....... 262,717 246,019
11,800 Nintendo -- TOYS............................. 785,892 989,950
146 Nippon Telegraph & Telephone
Corp. -- TELEPHONE SERVICES................ 1,318,285 1,403,478
30,000 Omron Corp. -- ELECTRONIC-CONTROLS AND
EQUIPMENT.................................. 583,837 637,071
19,000 Orix Corp. -- LEASING........................ 717,961 1,409,682
10,500 Promise Co. Ltd. -- FINANCE SERVICES......... 475,881 601,940
124,000 Ricoh Corp. Ltd. -- OFFICE EQUIPMENT AND
SUPPLIES................................... 1,411,509 1,625,447
99,000 Sekisui Chemical Co. -- CHEMICALS............ 1,118,804 1,003,583
15,800 Sony Corp. -- ELECTRONIC-CONTROLS AND
EQUIPMENT.................................. 973,713 1,379,376
</TABLE>
63
<PAGE>
FORTIS SERIES FUND, INC.
INTERNATIONAL STOCK SERIES (CONTINUED)
Schedule of Investments
June 30,1997 (Unaudited)
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
--------- ------------ ------------
<C> <S> <C> <C>
141,000 Sumitomo Trust & Bank -- BANKS............... $ 1,579,846 $ 1,515,599
------------ ------------
12,966,457 14,990,375
------------ ------------
MALAYSIA-0.29%
43,000 Genting Berhad -- LEISURE TIME-AMUSEMENTS.... 298,304 206,141
------------ ------------
NETHERLANDS-3.72%
3,800 Heineken NV -- BEVERAGE...................... 715,251 649,715
12,200 Philips Electronics NV -- ELECTRIC
PRODUCTS................................... 563,697 875,466
19,600 Royal Dutch Petroleum Co. NY
Shares -- OIL-REFINING..................... 737,495 1,065,750
------------ ------------
2,016,443 2,590,931
------------ ------------
NEW ZEALAND-0.45%
123,300 Lion Nathan Ltd. -- BUILDING MATERIALS....... 285,785 311,694
------------ ------------
SPAIN-1.05%
25,400 Telefonica de Espana -- TELECOMMUNICATIONS... 602,717 735,731
------------ ------------
SWEDEN-3.36%
41,867 Astra AB -- CLASS B SHARES -- DRUGS.......... 613,084 744,488
10,300 Electrolux AB "B" Free -- HOUSEHOLD
PRODUCTS................................... 513,604 743,290
26,700 Svenska Handelsbanken -- BANKS............... 529,946 854,621
------------ ------------
1,656,634 2,342,399
------------ ------------
SWITZERLAND-7.92%
700 Electrowatt AG Class B -- ELECTRIC
PRODUCTS................................... 270,712 259,766
780 Holderbank Financiere Glaris AG -- BUILDING
MATERIALS.................................. 736,111 737,813
755 Nestle S.A. Registered -- FOOD............... 835,436 997,448
910 Novartis AG -- DRUGS......................... 825,908 1,456,899
390 S.M.H. AG -- MISCELLANEOUS................... 265,384 223,109
347 SGS Societe Generale de Surveillance Holding
S.A. -- BANKS.............................. 683,508 742,628
2,760 Zurich Versicherungs -- INSURANCE............ 816,724 1,099,949
------------ ------------
4,433,783 5,517,612
------------ ------------
UNITED KINGDOM-19.06%
27,900 Allied Domecq plc -- RETAIL-DEPARTMENT
STORES..................................... 202,319 200,363
120,400 B.A.T. Industries plc -- TOBACCO............. 988,672 1,077,052
87,483 British Aerospace plc -- AEROSPACE AND
EQUIPMENT.................................. 1,194,159 1,945,917
215,900 BTR plc -- MISCELLANEOUS..................... 901,606 738,408
130,810 Cadbury Schweppes plc -- STEEL AND IRON...... 1,055,863 1,165,822
29,700 Emi Group plc -- MISCELLANEOUS............... 585,595 532,605
92,500 General Electric Co. plc -- ELECTRIC
PRODUCTS................................... 542,498 552,673
140,206 Grand Metropolitan ORD -- RETAIL-DEPARTMENT
STORES..................................... 1,048,675 1,356,901
318,600 Lucasvarity plc -- AUTOMOBILE AND MOTOR
VEHICLE PARTS.............................. 1,065,836 1,102,912
94,800 Mirror Group plc -- PUBLISHING............... 290,173 296,618
124,000 National Power plc -- UTILITIES-ELECTRIC..... 905,183 1,077,269
61,600 Prudential Corp. plc -- INSURANCE............ 566,921 596,159
78,800 Rank Group plc -- LEISURE TIME-AMUSEMENTS.... 534,118 499,014
97,600 Redland plc -- BUILDING MATERIALS............ 608,613 553,094
503,700 Sears -- RETAIL-DEPARTMENT STORES............ 777,113 561,666
35,900 Unilever plc -- CONSUMER GOODS............... 727,443 1,028,569
------------ ------------
11,994,787 13,285,042
------------ ------------
TOTAL COMMON STOCKS.......................... $53,230,087 $63,215,798
------------ ------------
------------ ------------
</TABLE>
64
<PAGE>
PREFERRED STOCKS-1.75%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
--------- ------------ ------------
<C> <S> <C> <C>
ITALY-1.75%
321,000 Fiat S.p.A. -- AUTOMOBILE MANUFACTURERS...... $ 668,484 $ 592,383
173,700 Fiat S.p.A. ORD -- AUTOMOBILE
MANUFACTURERS.............................. 537,704 624,769
------------ ------------
TOTAL PREFERRED STOCKS....................... $ 1,206,188 $ 1,217,152
------------ ------------
------------ ------------
TOTAL LONG-TERM INVESTMENTS.................. $54,436,275 $64,432,950
------------ ------------
------------ ------------
</TABLE>
SHORT-TERM INVESTMENTS-6.64%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
----------- ------------
<C> <S> <C>
BANKS-6.64%
$4,624,283 First Trust Money Market Variable Rate Time
Deposit, Current rate -- 5.44%............. $ 4,624,283
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$59,060,558) (B)........................... $69,057,233
------------
------------
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 1997, the cost of securities for federal income tax purposes
was $59,060,558 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation.......................................... $11,077,646
Unrealized depreciation.......................................... (1,080,971)
- ------------------------------------------------------------------------------
Net unrealized appreciation...................................... $ 9,996,675
- ------------------------------------------------------------------------------
</TABLE>
(c) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets.
65
<PAGE>
FORTIS SERIES FUND, INC.
AGGRESSIVE GROWTH SERIES
Schedule of Investments
June 30, 1997 (Unaudited)
COMMON STOCKS-84.85%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
--------- ------------ -------------
<C> <S> <C> <C>
ADVERTISING-PUBLIC RELATIONS-0.33%
10,500 CKS Group, Inc. (a) (e)...................... $ 297,500 $ 354,375
------------ -------------
BEVERAGE-0.47%
51,900 Boston Beer Co. (The), Inc., Class A (a)..... 1,136,491 512,512
------------ -------------
BIOMEDICS, GENETICS RESEARCH AND DEVELOPMENT-1.02%
50,000 BioChem Pharma, Inc. (a)..................... 1,077,475 1,112,500
------------ -------------
BUSINESS SERVICES AND SUPPLIES-14.21%
27,920 AccuStaff, Inc. (a).......................... 696,080 661,355
121,700 Acxiom Corp. (a)............................. 1,559,387 2,494,850
64,000 APAC TeleServices, Inc. (a) (e).............. 584,508 1,244,000
7,200 Catalina Marketing Corp. (a)................. 200,394 346,500
32,000 COREstaff, Inc. (a).......................... 853,611 864,000
43,100 Correctional Services Corp. (a).............. 589,031 517,200
23,000 Corrections Corp. of America (a)............. 697,338 914,250
52,000 Covance, Inc. (a)............................ 999,211 1,004,250
30,800 Fastenal Co. (e)............................. 1,089,700 1,509,200
36,200 Indus Group, Inc. (a)........................ 653,252 733,050
13,350 Paychex, Inc. (e)............................ 382,348 507,300
35,000 Precision Response Corp. (a) (e)............. 986,875 577,500
36,500 Romac International, Inc. (a)................ 941,325 1,195,375
30,600 Snyder Communications, Inc. (a) (e).......... 615,442 824,287
31,500 Sykes Enterprises, Inc. (a).................. 953,487 819,000
47,500 TeleTech Holdings, Inc. (a) (e).............. 707,500 1,237,969
------------ -------------
12,509,489 15,450,086
------------ -------------
COMPUTER-COMMUNICATIONS EQUIPMENT-4.02%
23,000 Ascend Communications, Inc. (a).............. 1,298,706 905,625
29,000 Cascade Communications Corp. (a)............. 1,410,601 801,125
26,800 Cisco Systems, Inc. (a)...................... 474,700 1,798,950
44,000 Network General Corp. (a).................... 817,067 654,500
12,500 Xylan Corp. (a) (e).......................... 743,750 212,500
------------ -------------
4,744,824 4,372,700
------------ -------------
COMPUTER-SOFTWARE-16.18%
28,000 Aspen Technology, Inc. (a)................... 715,546 1,053,500
30,900 Envoy Corp. (a) (e).......................... 1,056,232 1,027,425
26,000 Fiserv, Inc. (a)............................. 971,656 1,160,250
28,000 HNC Software, Inc. (a) (e)................... 926,744 1,067,500
13,000 INSO Corp. (a) (e)........................... 646,750 267,312
48,000 Legato Systems, Inc. (a)..................... 768,375 888,000
21,000 Netscape Communications Corp. (a) (e)........ 999,762 673,312
49,600 Parametric Technology Corp. (a).............. 1,638,711 2,111,100
36,000 Platinum Technology, Inc. (a)................ 505,640 477,000
33,000 Pure Atria Corp. (a)......................... 1,196,373 466,125
18,000 Rational Software Corp. (a).................. 679,500 302,625
28,500 Scopus Technology, Inc. (a).................. 378,029 637,687
36,200 Siebel Systems, Inc. (a)..................... 876,756 1,167,450
54,778 Sterling Commerce, Inc. (a).................. 1,372,022 1,800,822
27,100 Sterling Software, Inc. (a).................. 649,038 846,875
42,800 Synopsys, Inc. (a)........................... 1,331,013 1,572,900
30,000 Vantive Corp. (a)............................ 910,758 847,500
19,450 Veritas Software Corp. (a)................... 890,183 977,363
45,600 Verity, Inc. (a)............................. 565,677 245,100
------------ -------------
17,078,765 17,589,846
------------ -------------
<CAPTION>
Market
Shares Cost (b) Value (c)
--------- ------------ -------------
<C> <S> <C> <C>
CONSUMER GOODS-2.02%
42,000 Blyth Industries, Inc. (a) (e)............... $ 1,016,960 $ 1,417,500
64,500 Seattle Film Works, Inc. (a)................. 688,000 774,000
------------ -------------
1,704,960 2,191,500
------------ -------------
EDUCATIONAL SERVICES-1.46%
45,000 Apollo Group, Inc., Class A (a).............. 872,434 1,586,250
------------ -------------
ELECTRICAL EQUIPMENT-1.06%
46,500 Chicago Miniature Lamp, Inc. (a)............. 1,311,000 1,156,688
------------ -------------
HEALTH CARE SERVICES-9.10%
58,700 ABR Information Services, Inc. (a)........... 1,384,309 1,702,300
114,000 American Oncology Resources, Inc. (a)........ 1,495,925 1,923,750
31,000 HCIA, Inc. (a)............................... 1,095,658 1,038,500
53,000 Medic Computer Systems, Inc. (a)............. 1,095,573 1,179,250
41,000 Medpartners, Inc. (a)........................ 947,497 886,625
52,500 Omnicare, Inc................................ 891,128 1,647,188
20,000 Parexel International Corp. (a).............. 337,500 635,000
40,000 Pharmaceutical Products Development, Inc.
(a)........................................ 1,043,045 880,000
------------ -------------
8,290,635 9,892,613
------------ -------------
MEDICAL SUPPLIES-0.77%
26,000 Arterial Vascular Engineering, Inc. (a)...... 700,912 836,875
------------ -------------
MEDICAL TECHNOLOGY-0.44%
13,800 Stryker Corp. (e)............................ 419,175 481,275
------------ -------------
OIL AND GAS FIELD SERVICES-4.57%
16,500 Camco International, Inc..................... 710,064 903,375
92,000 Input/Output, Inc. (a)....................... 1,512,699 1,667,500
49,000 Petroleum Geo-Services ADR (a)............... 1,442,883 2,394,875
------------ -------------
3,665,646 4,965,750
------------ -------------
OIL-OFFSHORE DRILLING-2.59%
24,000 Falcon Drilling Co. (a)...................... 836,394 1,383,000
42,000 Marine Drilling Companies, Inc. (a).......... 677,250 824,250
24,000 Stolt Comex Seaway, S.A. (a)................. 422,450 609,000
------------ -------------
1,936,094 2,816,250
------------ -------------
RESTAURANTS AND FRANCHISING-3.62%
56,900 Applebees International, Inc................. 1,366,177 1,522,075
16,200 Cracker Barrel Old Country Store, Inc........ 419,514 429,300
23,000 Lone Star Steakhouse & Saloon, Inc. (a)...... 769,775 598,000
37,600 Papa John's International, Inc. (a) (e)...... 997,600 1,381,800
------------ -------------
3,553,066 3,931,175
------------ -------------
RETAIL-MISCELLANEOUS-0.89%
45,050 Corporate Express, Inc. (a).................. 623,919 650,409
27,600 PetsMart, Inc. (a)........................... 310,538 317,400
------------ -------------
934,457 967,809
------------ -------------
RETAIL-SPECIALTY-9.26%
53,000 Bed, Bath & Beyond, Inc. (a) (e)............. 1,139,675 1,609,875
45,900 CUC International, Inc. (a) (e).............. 985,999 1,184,794
29,000 Dollar Tree Stores, Inc. (a)................. 1,406,500 1,460,875
53,100 Gadzooks, Inc. (a) (e)....................... 793,408 1,035,450
41,000 General Nutrition Companies, Inc. (a)........ 915,357 1,148,000
36,000 Just for Feet, Inc. (a)...................... 1,252,500 627,750
17,000 The Wet Seal, Inc. (a)....................... 380,375 536,562
57,000 Viking Office Products, Inc. (a)............. 894,086 1,083,000
</TABLE>
66
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
--------- ------------ -------------
<C> <S> <C> <C>
53,400 West Marine, Inc. (a) (e).................... $ 803,200 $ 1,375,050
------------ -------------
8,571,100 10,061,356
------------ -------------
TELECOMMUNICATION EQUIPMENT-3.21%
25,000 ADC Telecommunications, Inc. (a) (e)......... 403,225 834,375
21,300 Andrew Corp. (with rights) (a)............... 498,823 599,063
36,000 Pairgain Technologies, Inc. (a).............. 1,276,349 558,000
26,800 Tellabs, Inc.(a)............................. 311,000 1,497,450
------------ -------------
2,489,397 3,488,888
------------ -------------
TELEPHONE SERVICES-7.61%
32,250 Brooks Fiber Properties, Inc. (a)............ 934,159 1,088,438
48,400 ICG Communications, Inc. (a)................. 768,834 931,700
<CAPTION>
Market
Shares Cost (b) Value (c)
--------- ------------ -------------
<C> <S> <C> <C>
45,000 Intermedia Communications, Inc. (a).......... $ 759,375 $ 1,456,875
67,200 LCI International, Inc. (a) (e).............. 1,126,870 1,470,000
50,000 McLeod, Inc. Class A (a)..................... 1,190,951 1,687,500
51,060 WorldCom, Inc. (a) (e)....................... 529,671 1,633,920
------------ -------------
5,309,860 8,268,433
------------ -------------
WASTE DISPOSAL-2.02%
53,600 United Waste Systems, Inc. (a) (e)........... 1,019,925 2,197,600
------------ -------------
TOTAL COMMON STOCKS.......................... $ 77,623,205 $ 92,234,481
------------ -------------
------------ -------------
</TABLE>
SHORT-TERM INVESTMENTS-15.29%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
------------ -------------
<C> <S> <C>
BANKS-3.78%
$ 4,109,000 First Trust Money Market Variable Rate Time
Deposit, Current rate -- 5.44%............. $ 4,109,000
-------------
DIVERSIFIED FINANCE-1.50%
1,627,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.42%...................... 1,627,000
-------------
U.S. GOVERNMENT AGENCY-10.01%
10,900,000 Federal National Mortgage Assoc., 5.52%,
7-10-1997.................................. 10,883,590
-------------
TOTAL SHORT-TERM INVESTMENTS................. $ 16,619,590
-------------
-------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$94,242,795)(b)............................ $ 108,854,071
-------------
-------------
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 1997, the cost of securities for federal income tax purposes
was $94,242,795 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation.......................................... $22,535,474
Unrealized depreciation.......................................... (7,924,198)
- ------------------------------------------------------------------------------
Net unrealized appreciation...................................... $14,611,276
- ------------------------------------------------------------------------------
</TABLE>
(c) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets. Market value of U.S. dollar denominated
investments in foreign securities represents 2.76% of net assets as of June
30, 1997.
(e) Security is fully or partially on loan at June 30, 1997. See note 1 of
accompanying Notes to Financial Statements.
67
<PAGE>
FORTIS SERIES FUND, INC.
Statements of Assets and Liabilities
(Unaudited)
June 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY U.S. GOV'T. DIVERSIFIED GLOBAL HIGH ASSET
MARKET SECURITIES INCOME BOND YIELD ALLOCATION
SERIES SERIES SERIES SERIES SERIES SERIES
------------ ------------- ------------- ------------ ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments in securities, as detailed
in the accompanying schedules, at
market* (Note 1).................... $64,769,349 $ 147,650,922 $ 99,398,810 $19,481,829 $49,728,426 $ 434,734,745
Cash on deposit with custodian........ 600 151 399 -- 795 60
Foreign currency on deposit with
custodian........................... -- -- -- -- -- --
Collateral for securities lending
transactions (Note 1)............... -- -- -- -- -- --
Receivables:
Unrealized appreciation on forward
foreign currency contracts -- net
(Note 1 and 3).................... -- -- -- 40,308 -- --
Investment securities sold.......... -- 18,598,594 4,520,682 175,372 2,525,237 7,088,096
Interest and dividends.............. 32,581 967,924 1,370,656 429,186 838,915 2,825,734
Subscriptions of capital stock...... 2,010 -- 1,708 4,796 -- --
Prepaid expenses...................... 6,685 26,572 9,724 9,137 5,634 18,208
------------ ------------- ------------- ------------ ------------ -------------
TOTAL ASSETS............................ 64,811,225 167,244,163 105,301,979 20,140,628 53,099,007 444,666,843
------------ ------------- ------------- ------------ ------------ -------------
LIABILITIES:
Bank overdraft........................ -- -- -- 2,208 -- --
Unrealized depreciation on forward
foreign currency contracts -- net
(Note 1 and 3)...................... -- -- -- -- -- --
Payable upon return of securities
loaned (Note 1)..................... -- -- -- -- -- --
Payable for investment securities
purchased........................... -- 21,452,045 3,636,477 175,202 1,833,050 4,010,217
Redemptions of capital stock.......... 276,634 20,065 148,795 4,091 97,343 243,388
Payable for investment advisory and
management fees (Note 2)............ 16,246 56,439 39,745 12,308 20,767 171,384
Accounts payable and accrued
expenses............................ 4,445 15,400 11,326 7,380 1,126 36,747
------------ ------------- ------------- ------------ ------------ -------------
TOTAL LIABILITIES....................... 297,325 21,543,949 3,836,343 201,189 1,952,286 4,461,736
------------ ------------- ------------- ------------ ------------ -------------
NET ASSETS:
Net proceeds of capital stock, par
value $.01 per share-authorized
20,000,000,000 shares;**............ 60,208,122 150,564,733 99,853,047 19,809,036 49,755,082 325,034,479
Unrealized appreciation (depreciation)
of investments in securities and
other assets and liabilities
denominated in foreign currency..... (12,207) 1,210,155 883,444 (478,273) (432,089) 82,000,907
Undistributed net investment income... 4,418,436 15,128,697 11,039,521 502,453 2,493,183 6,319,565
Accumulated net realized gain (loss)
from sale of investments and foreign
currency............................ (100,451) (21,203,371) (10,310,376) 106,223 (669,455) 26,850,156
------------ ------------- ------------- ------------ ------------ -------------
TOTAL NET ASSETS........................ $64,513,900 $ 145,700,214 $ 101,465,636 $19,939,439 $51,146,721 $ 440,205,107
------------ ------------- ------------- ------------ ------------ -------------
NET ASSET VALUE PER SHARE............... $11.23 $10.88 $12.06 $10.91 $10.33 $18.79
------------ ------------- ------------- ------------ ------------ -------------
*Cost................................... $64,781,556 $ 146,440,767 $ 98,515,366 $19,991,360 $50,160,515 $ 352,733,838
**Outstanding shares.................... 5,746,518 13,394,983 8,416,001 1,828,388 4,950,336 23,431,336
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
68
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL ASSET GROWTH & S & P BLUE CHIP GLOBAL
ALLOCATION VALUE INCOME 500 INDEX STOCK GROWTH
SERIES SERIES SERIES SERIES SERIES SERIES
------------ ------------ ------------- ------------ ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments in securities, as detailed
in the accompanying schedules, at
market* (Note 1)...................... $45,288,118 $31,569,036 $ 194,531,985 $59,414,889 $44,259,113 $ 357,097,028
Cash on deposit with custodian.......... -- 389 807 -- -- 170
Foreign currency on deposit with
custodian............................. 62,572 -- -- -- -- --
Collateral for securities lending
transactions (Note 1)................. -- -- 19,432,623 -- -- 93,686,917
Receivables:
Unrealized appreciation on forward
foreign currency contracts -- net
(Note 1 and 3)...................... 16,660 -- -- -- -- --
Investment securities sold............ 4,453 458,604 -- -- -- 604,781
Interest and dividends................ 559,014 40,071 427,224 75,208 42,234 628,015
Subscriptions of capital stock........ 11,535 171,711 214,305 258,982 274,422 44,683
Prepaid expenses........................ 10,968 11,808 13,883 7,474 6,902 60,747
------------ ------------ ------------- ------------ ------------ -------------
TOTAL ASSETS............................ 45,953,320 32,251,619 214,620,827 59,756,553 44,582,671 452,122,341
------------ ------------ ------------- ------------ ------------ -------------
LIABILITIES:
Bank overdraft........................ -- -- -- -- -- --
Unrealized depreciation on forward
foreign currency contracts -- net
(Note 1 and 3)...................... -- -- -- -- -- 1,230
Payable upon return of securities
loaned (Note 1)..................... -- -- 19,432,623 -- -- 93,686,917
Payable for investment securities
purchased........................... -- 179,238 -- -- 613,987 244,213
Redemptions of capital stock.......... 10,277 -- -- -- -- 107,717
Payable for investment advisory and
management fees (Note 2)............ 33,329 17,633 101,686 18,603 30,283 200,101
Accounts payable and accrued
expenses............................ 14,571 42 2,157 28,312 753 65,619
------------ ------------ ------------- ------------ ------------ -------------
TOTAL LIABILITIES....................... 58,177 196,913 19,536,466 46,915 645,023 94,305,797
------------ ------------ ------------- ------------ ------------ -------------
NET ASSETS:
Net proceeds of capital stock, par
value $.01 per share-authorized
20,000,000,000 shares;**............ 39,120,373 28,089,497 148,213,533 50,658,159 37,736,779 246,611,036
Unrealized appreciation (depreciation)
of investments in securities and
other assets and liabilities
denominated in foreign currency..... 5,414,881 3,040,129 43,442,967 8,349,230 6,202,192 116,637,791
Undistributed net investment income... 599,217 174,360 2,198,747 295,613 126,228 744,869
Accumulated net realized gain (loss)
from sale of investments and foreign
currency............................ 760,672 750,720 1,229,114 406,636 (127,551) (6,177,152)
------------ ------------ ------------- ------------ ------------ -------------
TOTAL NET ASSETS........................ $45,895,143 $32,054,706 $ 195,084,361 $59,709,638 $43,937,648 $ 357,816,544
------------ ------------ ------------- ------------ ------------ -------------
NET ASSET VALUE PER SHARE............... $13.39 $12.92 $17.40 $13.76 $13.40 $20.26
------------ ------------ ------------- ------------ ------------ -------------
*Cost................................... $39,881,353 $28,528,907 $ 151,089,018 $51,089,884 $38,056,921 $ 240,448,004
**Outstanding shares.................... 3,426,422 2,481,495 11,210,196 4,339,039 3,279,499 17,661,149
<CAPTION>
GROWTH INTERNATIONAL AGGRESSIVE
STOCK STOCK GROWTH
SERIES SERIES SERIES
------------- ------------ -------------
<S> <C> <C> <C>
ASSETS:
Investments in securities, as detailed
in the accompanying schedules, at
market* (Note 1)...................... $ 696,553,799 $69,057,233 $ 108,854,071
Cash on deposit with custodian.......... 871 -- 862
Foreign currency on deposit with
custodian............................. -- -- --
Collateral for securities lending
transactions (Note 1)................. -- -- 13,159,075
Receivables:
Unrealized appreciation on forward
foreign currency contracts -- net
(Note 1 and 3)...................... -- -- --
Investment securities sold............ -- -- 24,203
Interest and dividends................ 270,529 619,338 35,830
Subscriptions of capital stock........ 16,316 68,707 83,561
Prepaid expenses........................ 27,409 5,913 7,726
------------- ------------ -------------
TOTAL ASSETS............................ 696,868,924 69,751,191 122,165,328
------------- ------------ -------------
LIABILITIES:
Bank overdraft........................ -- -- --
Unrealized depreciation on forward
foreign currency contracts -- net
(Note 1 and 3)...................... -- -- --
Payable upon return of securities
loaned (Note 1)..................... -- -- 13,159,075
Payable for investment securities
purchased........................... 1,315,557 -- 185,837
Redemptions of capital stock.......... 184,721 2,351 --
Payable for investment advisory and
management fees (Note 2)............ 344,956 47,093 60,409
Accounts payable and accrued
expenses............................ 65,202 8,808 54,328
------------- ------------ -------------
TOTAL LIABILITIES....................... 1,910,436 58,252 13,459,649
------------- ------------ -------------
NET ASSETS:
Net proceeds of capital stock, par
value $.01 per share-authorized
20,000,000,000 shares;**............ 414,355,406 56,959,865 104,013,978
Unrealized appreciation (depreciation)
of investments in securities and
other assets and liabilities
denominated in foreign currency..... 249,022,939 9,990,257 14,611,276
Undistributed net investment income... 1,019,689 768,288 179,609
Accumulated net realized gain (loss)
from sale of investments and foreign
currency............................ 30,560,454 1,974,529 (10,099,184)
------------- ------------ -------------
TOTAL NET ASSETS........................ $ 694,958,488 $69,692,939 $ 108,705,679
------------- ------------ -------------
NET ASSET VALUE PER SHARE............... $34.89 $14.01 $12.87
------------- ------------ -------------
*Cost................................... $ 447,530,860 $59,060,558 $ 94,242,795
**Outstanding shares.................... 19,915,847 4,973,820 8,448,248
</TABLE>
69
<PAGE>
FORTIS SERIES FUND, INC.
Statements of Operations
(Unaudited)
For the Six-Month Period Ended June 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY U.S. GOV'T. DIVERSIFIED GLOBAL HIGH ASSET
MARKET SECURITIES INCOME BOND YIELD ALLOCATION
SERIES SERIES SERIES SERIES SERIES SERIES
----------- ----------- ----------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME:
Income:
Interest income..................... $1,835,018 $5,067,704 $3,941,103 $ 538,626 $2,553,497 $ 6,442,098
Dividend Income..................... -- -- -- -- -- 815,630
Fee income (Note 1)................. -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- ------------
Total Income *........................ 1,835,018 5,067,704 3,941,103 538,626 2,553,497 7,257,728
----------- ----------- ----------- ----------- ----------- ------------
Expenses:
Investment advisory and management
fees (Note 2)..................... 99,349 349,282 240,891 72,981 116,474 977,100
Legal and auditing fees (Note 2).... 7,007 15,436 10,703 7,577 8,395 17,645
Custodian fees...................... 6,473 16,084 9,499 12,583 6,873 28,859
Shareholders' notices and reports... 7,290 7,234 16,158 2,078 4,914 56,006
Directors' fees and expenses........ 717 2,462 1,314 190 434 5,518
Other............................... 755 3,978 2,887 2,860 1,565 9,262
----------- ----------- ----------- ----------- ----------- ------------
Total Expenses........................ 121,591 394,476 281,452 98,269 138,655 1,094,390
----------- ----------- ----------- ----------- ----------- ------------
NET INVESTMENT INCOME................... 1,713,427 4,673,228 3,659,651 440,357 2,414,842 6,163,338
----------- ----------- ----------- ----------- ----------- ------------
REALIZED & UNREALIZED GAIN (LOSS) ON
INVESTMENTS & FOREIGN CURRENCY
TRANSACTIONS: (NOTE 1)
Net realized gain (loss) from:
Investments......................... -- (44,343) (579,354) (82,735) 520,666 25,463,381
Foreign currency transactions....... -- -- -- (100,826) -- --
Future contracts (Note 4)........... -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- ------------
NET REALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS..... -- (44,343) (579,354) (183,561) 520,666 25,463,381
----------- ----------- ----------- ----------- ----------- ------------
NET CHANGES IN UNREALIZED APPRECIATION
(DEPRECIATION) OF:
Investments........................... (9,207) (387,191) (16,712) (72,938) (518,183) 10,309,404
Translation of assets and liabilities
denominated in foreign currency..... -- -- -- (549,675) -- --
----------- ----------- ----------- ----------- ----------- ------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS......... (9,207) (387,191) (16,712) (622,613) (518,183) 10,309,404
----------- ----------- ----------- ----------- ----------- ------------
NET GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY...................... (9,207) (431,534) (596,066) (806,174) 2,483 35,772,785
----------- ----------- ----------- ----------- ----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. $1,704,220 $4,241,694 $3,063,585 $ (365,817) $2,417,325 $41,936,123
----------- ----------- ----------- ----------- ----------- ------------
</TABLE>
<TABLE>
<CAPTION>
*Net of foreign witholding taxes of:
<S> <C>
Global Bond Series $ 9,878
Asset Allocation Series 6,391
Global Asset Allocation Series 29,639
S & P 500 Index Series 4,105
Blue Chip Stock Series 559
Global Growth Series 116,569
International Stock Series 45,660
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
70
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL
ASSET GROWTH & S & P BLUE CHIP GLOBAL
ALLOCATION VALUE INCOME 500 INDEX STOCK GROWTH
SERIES SERIES SERIES SERIES SERIES SERIES
----------- ----------- ------------ ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME:
Income:
Interest income....................... $ 548,750 $ 65,679 $ 523,556 $ 38,968 $ 94,237 $ 648,860
Dividend Income....................... 301,857 188,325 2,225,272 347,962 173,402 1,308,699
Fee income (Note 1)................... -- -- 8,020 -- -- 55,774
----------- ----------- ------------ ----------- ----------- ------------
Total Income *.......................... 850,607 254,004 2,756,848 386,930 267,639 2,013,333
----------- ----------- ------------ ----------- ----------- ------------
Expenses:
Investment advisory and management
fees (Note 2)....................... 182,481 76,335 531,816 76,841 127,831 1,125,396
Legal and auditing fees (Note 2)...... 6,840 3,895 8,083 8,661 7,121 14,985
Custodian fees........................ 30,994 3,570 8,529 7,231 5,718 61,646
Shareholders' notices and reports..... 3,518 682 10,811 1,335 678 35,802
Directors' fees and expenses.......... 258 144 1,200 374 423 3,472
Other................................. 1,733 680 2,301 3,667 417 6,923
----------- ----------- ------------ ----------- ----------- ------------
Total Expenses.......................... 225,824 85,306 562,740 98,109 142,188 1,248,224
----------- ----------- ------------ ----------- ----------- ------------
NET INVESTMENT INCOME................... 624,783 168,698 2,194,108 288,821 125,451 765,109
----------- ----------- ------------ ----------- ----------- ------------
REALIZED & UNREALIZED GAIN (LOSS) ON
INVESTMENTS & FOREIGN CURRENCY
TRANSACTIONS: (NOTE 1)
Net realized gain (loss) from:
Investments......................... 725,181 766,295 1,700,984 169,258 (138,630) 10,733,842
Foreign currency transactions....... (103,872) -- -- -- -- (20,240)
Future contracts (Note 4)........... -- -- -- 152,175 -- --
----------- ----------- ------------ ----------- ----------- ------------
NET REALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS..... 621,309 766,295 1,700,984 321,433 (138,630) 10,713,602
----------- ----------- ------------ ----------- ----------- ------------
NET CHANGES IN UNREALIZED APPRECIATION
(DEPRECIATION) OF:
Investments........................... 2,794,921 2,044,296 18,835,790 6,630,765 4,444,874 11,097,309
Translation of assets and liabilities
denominated in foreign currency..... (477,344) -- -- -- -- (10,891)
----------- ----------- ------------ ----------- ----------- ------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS......... 2,317,577 2,044,296 18,835,790 6,630,765 4,444,874 11,086,418
----------- ----------- ------------ ----------- ----------- ------------
NET GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY...................... 2,938,886 2,810,591 20,536,774 6,952,198 4,306,244 21,800,020
----------- ----------- ------------ ----------- ----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. $3,563,669 $2,979,289 $22,730,882 $7,241,019 $4,431,695 $22,565,129
----------- ----------- ------------ ----------- ----------- ------------
<CAPTION>
GROWTH INTERNATIONAL AGGRESSIVE
STOCK STOCK GROWTH
SERIES SERIES SERIES
------------ ----------- ------------
<S> <C> <C> <C>
NET INVESTMENT INCOME:
Income:
Interest income....................... $ 2,541,796 $ 96,178 $ 559,806
Dividend Income....................... 606,306 924,127 4,648
Fee income (Note 1)................... -- -- 26,201
------------ ----------- ------------
Total Income *.......................... 3,148,102 1,020,305 590,655
------------ ----------- ------------
Expenses:
Investment advisory and management
fees (Note 2)....................... 2,003,108 248,217 330,830
Legal and auditing fees (Note 2)...... 24,927 9,863 8,796
Custodian fees........................ 42,437 37,676 24,874
Shareholders' notices and reports..... 99,146 510 38,073
Directors' fees and expenses.......... 9,028 402 3,188
Other................................. 15,913 2,002 6,638
------------ ----------- ------------
Total Expenses.......................... 2,194,559 298,670 412,399
------------ ----------- ------------
NET INVESTMENT INCOME................... 953,543 721,635 178,256
------------ ----------- ------------
REALIZED & UNREALIZED GAIN (LOSS) ON
INVESTMENTS & FOREIGN CURRENCY
TRANSACTIONS: (NOTE 1)
Net realized gain (loss) from:
Investments......................... 35,234,571 1,936,321 (3,813,800)
Foreign currency transactions....... -- 1,318 --
Future contracts (Note 4)........... -- -- --
------------ ----------- ------------
NET REALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS..... 35,234,571 1,937,639 (3,813,800)
------------ ----------- ------------
NET CHANGES IN UNREALIZED APPRECIATION
(DEPRECIATION) OF:
Investments........................... 9,452,443 4,988,059 (681,206)
Translation of assets and liabilities
denominated in foreign currency..... -- (6,842) --
------------ ----------- ------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS......... 9,452,443 4,981,217 (681,206)
------------ ----------- ------------
NET GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY...................... 44,687,014 6,918,856 (4,495,006)
------------ ----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. $45,640,557 $7,640,491 $(4,316,750)
------------ ----------- ------------
</TABLE>
71
<PAGE>
FORTIS SERIES FUND, INC.
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
U.S. GOVERNMENT
MONEY MARKET SERIES SECURITIES SERIES
- -------------------------------------------------------------------------------------------------------
FOR THE FOR THE
SIX-MONTH FOR THE SIX-MONTH FOR THE
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income................. $ 1,713,427 $ 2,705,255 $ 4,673,228 $ 10,440,214
Net realized gain (loss) on
investments and foreign currency
transactions........................ -- -- (44,343) (834,376)
Net change in unrealized appreciation
(depreciation) of investments and
foreign currency.................... (9,207) (52,386) (387,191) (6,445,889)
------------- ------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. 1,704,220 2,652,869 4,241,694 3,159,949
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income............ -- (2,223,183) -- (11,838,465)
Tax return of capital................. -- -- -- --
From net realized gains on
investments......................... -- -- -- --
Excess distributions of net realized
gains............................... -- -- -- (28,104)
------------- ------------- ------------- -------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS..... -- (2,223,183) -- (11,866,569)
------------- ------------- ------------- -------------
CAPITAL STOCK SOLD AND REPURCHASED:
(NOTE 6)
Proceeds from sale of shares.......... 37,752,565 62,995,729 1,706,786 11,422,482
Proceeds from shares issued as a
result of reinvested dividends...... -- 2,223,183 -- 11,866,569
Less cost of repurchase............... (36,849,236) (45,549,360) (21,926,239) (35,591,789)
------------- ------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARES TRANSACTIONS.............. 903,329 19,669,552 (20,219,453) (12,302,738)
------------- ------------- ------------- -------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS................................ 2,607,549 20,099,238 (15,977,759) (21,009,358)
NET ASSETS:
Beginning of period................... 61,906,351 41,807,113 161,677,973 182,687,331
------------- ------------- ------------- -------------
End of period (Note 5)................ $ 64,513,900 $ 61,906,351 $145,700,214 $161,677,973
------------- ------------- ------------- -------------
</TABLE>
<TABLE>
<CAPTION>
GLOBAL ASSET
ALLOCATION SERIES VALUE SERIES
- ---------------------------------------------------------------------------------------------------
FOR THE
PERIOD FROM
FOR THE FOR THE MARCH 28,
SIX-MONTH SIX-MONTH 1996
PERIOD ENDED FOR THE PERIOD ENDED (INCEPTION)
JUNE 30, YEAR ENDED JUNE 30, TO
1997 DECEMBER 31, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income................. $ 624,783 $ 864,460 $ 168,698 $ 81,183
Net realized gain (loss) on
investments and foreign currency
transactions........................ 621,309 668,532 766,295 (15,575)
Net change in unrealized appreciation
(depreciation) of investments and
foreign currency.................... 2,317,577 2,018,694 2,044,296 995,833
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. 3,563,669 3,551,686 2,979,289 1,061,441
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income............ -- (897,921) -- (75,521)
Tax return of capital................. -- -- -- --
From net realized gains on
investments......................... -- (601,285) -- --
Excess distributions of net realized
gains............................... -- -- -- --
------------ ------------ ------------ ------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS..... -- (1,499,206) -- (75,521)
------------ ------------ ------------ ------------
CAPITAL STOCK SOLD AND REPURCHASED:
(NOTE 6)
Proceeds from sale of shares.......... 6,325,220 17,172,109 15,411,980 13,000,854
Proceeds from shares issued as a
result of reinvested dividends...... -- 1,499,206 -- 75,521
Less cost of repurchase............... (1,300,778) (3,496,933) (288,038) (110,820)
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARES TRANSACTIONS.............. 5,024,442 15,174,382 15,123,942 12,965,555
------------ ------------ ------------ ------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS................................ 8,588,111 17,226,862 18,103,231 13,951,475
NET ASSETS:
Beginning of period................... 37,307,032 20,080,170 13,951,475 --
------------ ------------ ------------ ------------
End of period (Note 5)................ $45,895,143 $37,307,032 $32,054,706 $13,951,475
------------ ------------ ------------ ------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
72
<PAGE>
<TABLE>
<CAPTION>
GLOBAL BOND SERIES HIGH YIELD SERIES
DIVERSIFIED INCOME SERIES --------------------------- ---------------------------
----------------------------- FOR THE FOR THE
FOR THE SIX-MONTH SIX-MONTH
SIX-MONTH FOR THE PERIOD ENDED FOR THE PERIOD ENDED FOR THE
PERIOD ENDED YEAR ENDED JUNE 30, YEAR ENDED JUNE 30, YEAR ENDED
JUNE 30, 1997 DECEMBER 31, 1997 DECEMBER 31, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996 (UNAUDITED) 1996
------------- ------------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income................. $ 3,659,651 $ 7,301,944 $ 440,357 $ 888,088 $ 2,414,842 $ 3,499,009
Net realized gain (loss) on
investments and foreign currency
transactions........................ (579,354) (825,580) (183,561) 329,721 520,666 305,622
Net change in unrealized appreciation
(depreciation) of investments and
foreign currency.................... (16,712) (2,233,621) (622,613) (879,380) (518,183) (372,410)
------------- ------------- ------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. 3,063,585 4,242,743 (365,817) 778,119 2,417,325 3,432,221
------------- ------------- ------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income............ -- (8,135,037) -- (669,496) -- (3,450,721)
Tax return of capital................. -- -- -- -- -- --
From net realized gains on
investments......................... -- -- -- (311,936) -- --
Excess distributions of net realized
gains............................... -- -- -- -- -- (171,270)
------------- ------------- ------------ ------------ ------------ ------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS..... -- (8,135,037) -- (981,432) -- (3,621,991)
------------- ------------- ------------ ------------ ------------ ------------
CAPITAL STOCK SOLD AND REPURCHASED:
(NOTE 6)
Proceeds from sale of shares.......... 1,479,108 6,371,872 1,775,024 9,900,900 8,898,629 16,606,547
Proceeds from shares issued as a
result of reinvested dividends...... -- 8,213,975 -- 981,432 -- 3,621,991
Less cost of repurchase............... (8,907,657) (15,119,958) (1,697,389) (3,638,872) (2,747,293) (5,589,855)
------------- ------------- ------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARES TRANSACTIONS.............. (7,428,549) (534,111) 77,635 7,243,460 6,151,336 14,638,683
------------- ------------- ------------ ------------ ------------ ------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS................................ (4,364,964) (4,426,405) (288,182) 7,040,147 8,568,661 14,448,913
NET ASSETS:
Beginning of period................... 105,830,600 109,119,746 20,227,621 13,187,474 42,578,060 28,129,147
------------- ------------- ------------ ------------ ------------ ------------
End of period (Note 5)................ $101,465,636 $105,830,600 $19,939,439 $20,227,621 $51,146,721 $42,578,060
------------- ------------- ------------ ------------ ------------ ------------
<CAPTION>
ASSET ALLOCATION SERIES
-----------------------------
FOR THE
SIX-MONTH FOR THE
PERIOD ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996
------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income................. $ 6,163,338 $ 12,585,802
Net realized gain (loss) on
investments and foreign currency
transactions........................ 25,463,381 14,650,440
Net change in unrealized appreciation
(depreciation) of investments and
foreign currency.................... 10,309,404 15,819,704
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. 41,936,123 43,055,946
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income............ -- (13,564,759)
Tax return of capital................. -- --
From net realized gains on
investments......................... -- (6,227,823)
Excess distributions of net realized
gains............................... -- --
------------- -------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS..... -- (19,792,582)
------------- -------------
CAPITAL STOCK SOLD AND REPURCHASED:
(NOTE 6)
Proceeds from sale of shares.......... 12,550,241 36,485,877
Proceeds from shares issued as a
result of reinvested dividends...... -- 19,951,533
Less cost of repurchase............... (11,993,590) (24,340,796)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARES TRANSACTIONS.............. 556,651 32,096,614
------------- -------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS................................ 42,492,774 55,359,978
NET ASSETS:
Beginning of period................... 397,712,333 341,511,306
------------- -------------
End of period (Note 5)................ $440,205,107 $397,712,333
------------- -------------
</TABLE>
<TABLE>
<CAPTION>
GROWTH & INCOME SERIES S & P 500 INDEX SERIES BLUE CHIP STOCK SERIES
- -----------------------------------------------------------------------------------------------------------------------------------
FOR THE FOR THE
PERIOD FROM PERIOD FROM
FOR THE MARCH 28, FOR THE MARCH 28,
FOR THE SIX-MONTH 1996 SIX-MONTH 1996
SIX-MONTH FOR THE PERIOD ENDED (INCEPTION) PERIOD ENDED (INCEPTION)
PERIOD ENDED YEAR ENDED JUNE 30, TO JUNE 30, TO
JUNE 30, 1997 DECEMBER 31, 1997 DECEMBER 31, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996 (UNAUDITED) 1996
------------- ------------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income................. $ 2,194,108 $ 2,268,263 $ 288,821 $ 128,502 $ 125,451 $ 61,105
Net realized gain (loss) on
investments and foreign currency
transactions........................ 1,700,984 1,336,739 321,433 86,309 (138,630) 11,079
Net change in unrealized appreciation
(depreciation) of investments and
foreign currency.................... 18,835,790 15,884,901 6,630,765 1,718,465 4,444,874 1,757,318
------------- ------------- ------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. 22,730,882 19,489,903 7,241,019 1,933,276 4,431,695 1,829,502
------------- ------------- ------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income............ -- (2,285,895) -- (121,710) -- (60,328)
Tax return of capital................. -- -- -- -- -- --
From net realized gains on
investments......................... -- (1,402,797) -- (1,106) -- --
Excess distributions of net realized
gains............................... -- -- -- -- -- --
------------- ------------- ------------ ------------ ------------ ------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS..... -- (3,688,692) -- (122,816) -- (60,328)
------------- ------------- ------------ ------------ ------------ ------------
CAPITAL STOCK SOLD AND REPURCHASED:
(NOTE 6)
Proceeds from sale of shares.......... 41,030,632 58,720,953 41,429,694 21,220,266 22,480,565 18,830,072
Proceeds from shares issued as a
result of reinvested dividends...... -- 3,688,692 -- 122,816 -- 60,328
Less cost of repurchase............... (3,609,358) (2,811,581) (10,939,664) (1,174,953) (580,770) (3,053,416)
------------- ------------- ------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARES TRANSACTIONS.............. 37,421,274 59,598,064 30,490,030 20,168,129 21,899,795 15,836,984
------------- ------------- ------------ ------------ ------------ ------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS................................ 60,152,156 75,399,275 37,731,049 21,978,589 26,331,490 17,606,158
NET ASSETS:
Beginning of period................... 134,932,205 59,532,930 21,978,589 -- 17,606,158 --
------------- ------------- ------------ ------------ ------------ ------------
End of period (Note 5)................ $195,084,361 $134,932,205 $59,709,638 $21,978,589 $43,937,648 $17,606,158
------------- ------------- ------------ ------------ ------------ ------------
</TABLE>
73
<PAGE>
FORTIS SERIES FUND, INC.
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
GLOBAL GROWTH SERIES GROWTH STOCK SERIES
- -------------------------------------------------------------------------------------------------------
FOR THE FOR THE
SIX-MONTH FOR THE SIX-MONTH FOR THE
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income................. $ 765,109 $ 406,323 $ 953,543 $ 2,320,174
Net realized gain (loss) on
investments and foreign currency
transactions........................ 10,713,602 (3,142,634) 35,234,571 22,383,900
Net change in unrealized appreciation
(depreciation) of investments and
foreign currency.................... 11,086,418 46,400,736 9,452,443 65,647,351
------------- ------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. 22,565,129 43,664,425 45,640,557 90,351,425
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income............ -- (420,937) -- (2,282,758)
Tax return of capital................. -- (12,672) -- --
From net realized gains on
investments......................... -- -- -- --
Excess distributions of net realized
gains............................... -- -- -- --
------------- ------------- ------------- -------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS..... -- (433,609) -- (2,282,758)
------------- ------------- ------------- -------------
CAPITAL STOCK SOLD AND REPURCHASED:
(NOTE 6)
Proceeds from sale of shares.......... 23,015,164 75,164,853 14,487,199 67,982,620
Proceeds from shares issued as a
result of reinvested dividends...... -- 433,609 -- 2,282,758
Less cost of repurchase............... (7,594,470) (6,911,460) (26,386,310) (28,061,530)
------------- ------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARES TRANSACTIONS.............. 15,420,694 68,687,002 (11,899,111) 42,203,848
------------- ------------- ------------- -------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS................................ 37,985,823 111,917,818 33,741,446 130,272,515
NET ASSETS:
Beginning of period................... 319,830,721 207,912,903 661,217,042 530,944,527
------------- ------------- ------------- -------------
End of period (Note 5)................ $357,816,544 $319,830,721 $694,958,488 $661,217,042
------------- ------------- ------------- -------------
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL STOCK SERIES AGGRESSIVE GROWTH SERIES
- ----------------------------------------------------------------------------------------------------
FOR THE
SIX-MONTH FOR THE
PERIOD ENDED FOR THE SIX-MONTH FOR THE
JUNE 30, YEAR ENDED PERIOD ENDED YEAR ENDED
1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
------------ ------------ ------------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income................. $ 721,635 $ 634,380 $ 178,256 $ 170,855
Net realized gain (loss) on
investments and foreign currency
transactions........................ 1,937,639 919,558 (3,813,800) (4,837,293)
Net change in unrealized appreciation
(depreciation) of investments and
foreign currency.................... 4,981,217 3,683,445 (681,206) 6,947,700
------------ ------------ ------------- ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. 7,640,491 5,237,383 (4,316,750) 2,281,262
------------ ------------ ------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income............ -- (698,708) -- (169,502)
Tax return of capital................. -- -- -- --
From net realized gains on
investments......................... -- (882,391) -- --
Excess distributions of net realized
gains............................... -- -- -- --
------------ ------------ ------------- ------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS..... -- (1,581,099) -- (169,502)
------------ ------------ ------------- ------------
CAPITAL STOCK SOLD AND REPURCHASED:
(NOTE 6)
Proceeds from sale of shares.......... 11,123,122 30,566,115 19,058,291 54,010,106
Proceeds from shares issued as a
result of reinvested dividends...... -- 1,581,099 -- 169,502
Less cost of repurchase............... (1,402,015) (4,799,479) (2,966,625) (6,303,867)
------------ ------------ ------------- ------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARES TRANSACTIONS.............. 9,721,107 27,347,735 16,091,666 47,875,741
------------ ------------ ------------- ------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS................................ 17,361,598 31,004,019 11,774,916 49,987,501
NET ASSETS:
Beginning of period................... 52,331,341 21,327,322 96,930,763 46,943,262
------------ ------------ ------------- ------------
End of period (Note 5)................ $69,692,939 $52,331,341 $108,705,679 $96,930,763
------------ ------------ ------------- ------------
</TABLE>
74
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements
(Unaudited)
- --------------------------------------------------------------------------------
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: The fund is an open-end
management investment company which currently is comprised of fifteen
separate investment portfolios and series of capital stock: Money Market
Series, U.S. Government Securities Series, Diversified Income Series, High
Yield Series, Asset Allocation Series, Global Asset Allocation Series, Value
Series, Growth & Income Series, S & P 500 Index Series, Blue Chip Stock
Series, Global Growth Series, Growth Stock Series, International Stock Series
and Aggressive Growth Series, which are diversified portfolios, and Global
Bond Series which is non-diversified. Each Series has different investment
objectives and its own investment portfolio and net asset value. The
investment objectives of the Series, which can be changed at any time without
the approval of Contract owners, are as follows:
- 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 to maximize
total return while providing shareholders with 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 to maximize total
return 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 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 objective of the "Value Series" is short and long-term capital
appreciation. Current income is only a secondary objective. The Series
invests primarily in equity securities and selects stocks based on the
"value" philosophy.
- The objective of the "Growth & Income Series" are capital appreciation and
current income, which such Series seeks by investing primarily in equity
securities that provide an income component and the potential for growth.
- The objective of the "S & P 500 Index Series" is to replicate the return of
the Standard & Poor's 500 Composite Stock Price Index (the "S&P 500 Index"
or the "Index") primarily through investments in equity securities.
- The objective of the "Blue Chip Stock Series" is to provide long-term
growth of capital. Current income is a secondary objective, and many of the
stocks in the Series' portfolio are expected to pay dividends.
- 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 or First Fortis Life separate accounts in
connection with variable insurance contracts and policies.
The inception of Value Series, S & P 500 Index Series, and Blue Chip Stock
Series was March 28, 1996, and the commencement of operations was May 1,
1996.
The significant accounting policies followed by the Funds are summarized as
follows:
SECURITY VALUATION: Investments in securities traded on U.S. or foreign
securities exchanges or on the NASDAQ National Market System are valued at
the last reported sales price. Securities for which over-the-counter market
quotations are readily available are valued on the basis of the last current
bid price. An outside pricing service may be utilized to provide such
valuations. The pricing service may employ electronic data processing
techniques and/or a matrix system to determine valuations using methods which
include consideration of yields or prices of bonds of comparable quality,
type of issue, coupon, maturity and rating indications as to value from
dealers, and general market conditions. Securities for which quotations are
not readily available are valued at fair value as determined in good faith by
management under supervision of the Board of Directors. 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
75
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (continued)
(Unaudited)
- --------------------------------------------------------------------------------
and the portfolio maintains, in a segregated account with its custodian,
assets with a market value equal to the amount of its purchase commitments.
As of June 30, 1997 U.S. Government Series, Diversified Income Series and
Asset Allocation Series entered into outstanding when-issued or forward
commitments of $11,063,233, $873,243 and $1,741,580 respectively.
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 date on security transactions, and other translation
gains or losses on dividends, interest income and foreign withholding taxes.
Global Bond Series, High Yield Series, Global Asset Allocation Series, Blue
Chip Stock Series, Global Growth Series, International Stock Series, and
Aggressive Growth Series may enter into forward foreign currency exchange
contracts for operational purposes and to attempt to minimize the risk from
adverse exchange rate fluctuations. Global Bond Series, Global Asset
Allocation Series and International Stock Series may also enter into
speculative forward contracts. The net U.S. dollar value of foreign currency
underlying all contractual commitments held by the fund and the resulting
unrealized appreciation or depreciation are determined using foreign currency
exchange rates from an independent pricing service. The fund is subject to
the credit risk that the other party will not complete the obligations of the
contract.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME: Security transactions
are accounted for on the trade date, except for Global Bond Series, Global
Asset Allocation Series, S & P 500 Index Series, Blue Chip Stock Series and
International Stock Series which account for security transactions on Trade
Date +1, and dividend income is recorded on the ex-dividend date for all
funds 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 each portfolio amortizes bond
premium, market discount and original issue discount. For the six-month
period ended June 30, 1997, the cost of purchases and proceeds from sales of
securities for Money Market Series were $202,686,938 and $199,284,621,
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...... $ 128,437,895 $ 130,683,937
Diversified Income
Series................. 104,677,400 111,301,766
Global Bond Series....... 13,660,214 16,248,731
High Yield Series........ 113,048,528 104,346,378
Asset Allocation
Series................. 242,263,990 232,378,055
Global Asset Allocation
Series................. 17,363,824 8,871,949
<CAPTION>
Cost of Proceeds
Purchases from Sales
<S> <C> <C>
- ------------------------------------------------------------
Value Series............. 20,965,720 8,473,726
Growth & Income Series... 49,670,393 8,959,957
S & P 500 Index Series... 31,427,571 1,573,633
Blue Chip Stock Series... 22,271,522 2,970,439
Global Growth Series..... 59,057,544 56,344,484
Growth Stock Series...... 56,074,817 110,122,569
International Stock
Series................. 19,684,632 12,021,248
Aggressive Growth
Series................. 24,745,370 11,104,962
</TABLE>
In the Global Asset Allocation Series for the period from January 2, 1997 to
June 30, 1997, brokerage commissions paid to an affiliated broker amounted to
$446.
LENDING OF PORTFOLIO SECURITIES: At June 30, 1997, securities valued at
$90,843,715, $19,026,835, and $12,879,056, were on loan to brokers from
Global Growth Series, Growth & Income Series, and Aggressive Growth Series,
respectively. For collateral, the portfolio's custodian received $93,686,917,
$19,432,623, and $13,159,075, 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 $55,774, $8,020, and $26,201, for
the six-month period ended June 30, 1997 for Global Growth Series, Growth &
Income Series, and Aggressive 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.
INCOME TAXES: The portfolios intend to qualify, under the Internal Revenue
Code, as regulated investment companies and if so qualified, will not have to
pay federal income taxes to the extent their taxable net income is
distributed. For tax purposes, each portfolio is a single taxable entity.
On a calendar year basis, the funds intend to distribute substantially all of
its net investment income and realized gains, if any, to avoid the payment of
federal excise taxes.
Net investment income and net realized gains differ for financial statement
and tax purposes primarily because of the recognition of realized gain (loss)
from foreign currency transactions as ordinary income (loss) for tax purposes
and the deferral of "wash sale" losses for tax purposes. The character of
distributions made during the year from net investment income or net realized
gains may, therefore, differ from their ultimate characterization for federal
income tax purposes.
On the Statement of Assets and Liabilities, due to permanent book-to-tax
differences, reclassification on 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>
Global
Global Asset Global International
Bond Allocation Growth Stock
Series Series Series Series
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------
Accumulated Net Realized Gain (Loss)......... $ 100,826 $ 103,872 $ 20,240 $(1,318)
</TABLE>
76
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Global
Global Asset Global International
Bond Allocation Growth Stock
Series Series Series Series
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Undistributed Net Investment Income.......... $ (100,826) $ (103,872) $ (20,240) $ 1,318
</TABLE>
For federal income tax purposes the portfolios had the following capital loss
carryovers at December 31, 1996, which, if not offset by subsequent capital
gains, will expire in 1997 through 2005. 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.......................... $ 100,451
U.S. Government Securities Series............ 20,813,645
Diversified Income Series.................... 9,784,542
High Yield Series............................ 1,195,344
Growth & Income Series....................... 471,870
Global Growth Series......................... 16,910,994
Growth Stock Series.......................... 4,674,117
Aggressive Growth Series..................... 6,285,384
</TABLE>
ILLIQUID SECURITIES: At June 30, 1997, 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, Aggressive Growth Series, Value Series, S & P 500 Series, and Blue
Chip Stock Series to 15%, of net assets, at market value, at date of
purchase. The aggregate values of such securities at June 30, 1997 were;
$2,682,650 Diversified Income Series; $9,849,700 Asset Allocation Series;
$7,574,500 High Yield Series; $494,387 Blue Chip Stock Series; $9,179,350
Global Growth Series, which represents 2.64%, 2.24%, 14.81%, 1.13%, 2.57% 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.
2. PAYMENTS TO RELATED PARTIES: Fortis Advisers, Inc., (Advisers), is the
investment adviser for each series. Investment advisory and management fees
are based on each series' average daily net assets and decrease in reduced
percentages as average daily net assets increase.
The following chart represents the annual fee percentages:
<TABLE>
<CAPTION>
Annual
Investment Advisory
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 .9%
For assets over $100 million .85%
Value Series For the first $100 million .7%
For assets over $100 million .6%
Growth & Income Series For the first $100 million .7%
For assets over $100 million .6%
S & P 500 Index Series For all assets .4%
Blue Chip Stock Series For the first $100 million .9%
For assets over $100 million .85%
Global Growth Series For the first $500 million .7%
For assets over $500 million .6%
Growth Stock Series For the first $100 million .7%
For assets over $100 million .6%
International Stock Series For the first $100 million .85%
For assets over $100 million .8%
Aggressive Growth Series For the first $100 million .7%
For assets over $100 million .6%
</TABLE>
The Global Bond Series, Global Asset Allocation Series, International Stock
Series, S & P 500 Series, and Blue Chip 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.
77
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (continued)
(Unaudited)
- --------------------------------------------------------------------------------
From its advisory fee, Advisers pay 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 Series Mercury Asset Management For the first $100 .35%
International Ltd. million .225%
For assets over $100
million
Global Asset Allocation Morgan Stanley Asset For the first $100 .5%
Series Management Limited million .4%
For assets over $100
million
S & P 500 Series The Dreyfus Corporation For all levels of assets .17%
Blue Chip Stock Series T. Rowe Price For the first $100 .5%
Associate, Inc. million .45%
For assets over $100
million
International Stock Lazard-Freres For the first $100 .45%
Series Asset Management million .375%
For assets over $100
million
</TABLE>
For the six-month period ended June 30, 1997, 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.......................... $ 992
U.S. Government Securities Series............ 2,894
Diversified Income Series.................... 1,664
<CAPTION>
Series Amount
<S> <C>
- ---------------------------------------------------------
Global Bond Series........................... 653
High Yield Series............................ 271
Asset Allocation Series...................... 6,934
Global Asset Allocation Series............... 497
Value Series................................. 1,266
Growth & Income Series....................... 1,636
S & P 500 Index Series....................... 2,755
Blue Chip Stock Series....................... 1,046
Global Growth Series......................... 4,967
Growth Stock Series.......................... 12,101
International Stock Series................... 358
Aggressive Growth Series..................... 2,083
</TABLE>
3. FORWARD FOREIGN CURRENCY CONTRACTS: At June 30, 1997, the Global Bond Series,
Global Asset Allocation Series and the Global Growth Series entered into
forward foreign currency exchange contracts that obligated the Series to
deliver/receive currencies at a specified future date. The unrealized
appreciation (depreciation) of $40,308, $16,660, ($1,230) 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
Value As Of Value As Of Unrealized
Currency To Jun 30, Currency To Jun 30, Appreciation/
Settle Date Be Delivered 1997 Be Received 1997 (Depreciation)
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
Aug. 7, 1997 242,670 $ 242,670 323,000 $ 243,641 $ 971
U.S. Dollar Australian Dollar
Aug. 7, 1997 281,589 281,589 390,000 283,192 1,603
U.S. Dollar Canadian Dollar
Aug. 7, 1997 642,180 642,180 385,000 640,203 (1,977)
U.S. Dollar British Pound Sterling
Aug. 7, 1997 1,333,333 1,333,333 152,000,000 1,334,453 1,120
U.S. Dollar Japanese Yen
Aug. 7, 1997 232,678 232,678 450,000 230,019 (2,659)
U.S. Dollar Netherland Guilder
Aug. 7, 1997 2,030,000 1,167,598 1,181,607 1,181,607 14,009
Deutsche Mark U.S. Dollar
Aug. 7, 1997 154,000,000 1,045,670 1,057,692 1,057,692 12,022
Spanish Peseta U.S. Dollar
Aug. 7, 1997 1,672,000,000 980,812 991,485 991,485 10,673
Italian Lira U.S. Dollar
Aug. 7, 1997 2,786,000 420,798 425,344 425,344 4,546
Danish Krone U.S. Dollar
----------- ----------- ---------------
$6,347,328 $6,387,636 $ 40,308
----------- ----------- ---------------
</TABLE>
78
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL ASSET ALLOCATION SERIES
- ---------------------------------------------------------------------------------------------
U.S. Dollar U.S. Dollar
Value As Of Value As Of Unrealized
Currency To Jun 30, Currency To Jun 30, Appreciation/
Settle Date Be Delivered 1997 Be Received 1997 (Depreciation)
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------
July 16, 1997 721,674 $ 721,674 90,000,000 $ 787,978 $ 66,304
U.S. Dollar Japanese Yen
July 17, 1997 733,775 733,775 1,250,000 718,032 (15,743)
U.S. Dollar Deutsche Mark
Aug. 6, 1997 167,882 167,882 110,000 166,650 (1,232)
U.S. Dollar Irish Punt
Aug. 7, 1997 515,606 515,606 75,000,000 509,255 (6,351)
U.S. Dollar Spanish Peseta
Aug. 20, 1997 961,332 961,332 1,627,321 936,853 (24,479)
U.S. Dollar Deutsche Mark
Aug. 27, 1997 1,035,062 1,035,062 1,763,021 1,015,479 (19,583)
U.S. Dollar Deutsche Mark
Sept. 3, 1997 289,408 289,408 380,000 286,710 (2,698)
U.S. Dollar Australian
Dollar
July 16, 1997 1,200,000 823,959 836,444 836,444 12,485
Swiss Franc U.S. Dollar
July 16, 1997 35,000,000 306,436 311,250 311,250 4,814
Japanese Yen U.S. Dollar
July 17, 1997 1,250,000 718,032 725,984 725,984 7,952
Deutsche Mark U.S. Dollar
July 28, 1997 200,000 332,670 324,660 324,660 (8,010)
British Pounds U.S. Dollar
Aug. 6, 1997 220,000 333,301 329,450 329,450 (3,851)
Irish Punt U.S. Dollar
Aug. 20, 1997 7,300,000 947,581 961,331 961,331 13,750
Swedish Krona U.S. Dollar
Aug. 27, 1997 120,000,000 1,056,420 1,035,063 1,035,063 (21,357)
Japanese Yen U.S. Dollar
Dec. 5, 1997 1,000,000 985,341 1,000,000 1,000,000 14,659
French Franc U.S. Dollar
----------- ----------- ---------------
$9,928,479 $9,945,139 $ 16,660
----------- ----------- ---------------
</TABLE>
<TABLE>
<CAPTION>
GLOBAL GROWTH SERIES
- -------------------------------------------------------------------------------------------
U.S. U.S.
Dollar Dollar
Value As Value As
Of Of Unrealized
Currency To Jun 30, Currency To Jun 30, Appreciation/
Settle Date Be Delivered 1997 Be Received 1997 (Depreciation)
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------
10-Jul-97 7,415,230 $ 604,781 603,551 $ 603,551 $ (1,230)
Austrian U.S. Dollar
Schilling
---------- ---------- -------
$ 604,781 $ 603,551 $ (1,230)
---------- ---------- -------
</TABLE>
4. FUTURES TRANSACTIONS: The Fund may invest in financial future contracts in
order to gain exposure to or protect against changes in the market. The Fund
is exposed to market risk as a result of changes in the value of the
underlying financial instruments (see the Statement of Financial Futures).
Investments in financial futures require the Fund to "mark to market" the
contract on a daily basis, which reflects the change in the market value of
the contract at the close of each day's trading. Accordingly, variation
margin payments are received or made to reflect daily unrealized gain or
losses. When the contracts are closed, the Fund recognizes a realized gain or
loss. These investments require initial margin deposits with a custodian,
which consist of cash or cash equivalents. The amount of these deposits is
determined by the exchange or Board of Trade on which the contract is traded
and is subject to change. Contracts open as of June 30, 1997 and their
related unrealized market appreciation are set forth in the Notes to Schedule
of Investments.
79
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (continued)
(Unaudited)
- --------------------------------------------------------------------------------
5. NET ASSETS INCLUDE UNDISTRIBUTED NET INVESTMENT INCOME OF:
<TABLE>
<CAPTION>
1997 1996
<S> <C> <C>
- ------------------------------------------------------------------------------
Money Market Series.......................... $ 4,418,436 $ 2,705,009
U.S. Government Securities Series............ 15,128,697 10,455,469
Diversified Income Series.................... 11,039,521 7,379,870
Global Bond Series........................... 502,453 162,922
High Yield Series............................ 2,493,183 78,341
Asset Allocation Series...................... 6,319,565 156,227
Global Asset Allocation Series............... 599,217 78,306
<CAPTION>
1997 1996
<S> <C> <C>
- ------------------------------------------------------------------------------
Value Series................................. $ 174,360 $ 5,662
Growth & Income Series....................... 2,198,747 4,639
S & P 500 Index Series....................... 295,613 6,792
Blue Chip Stock Series....................... 126,228 777
Global Growth Series......................... 744,869 0
Growth Stock Series.......................... 1,019,689 66,146
International Stock Series................... 768,288 45,335
Aggressive Growth Series..................... 179,609 1,353
</TABLE>
6. SHARES OF CAPITAL STOCK SOLD AND REPURCHASED:
<TABLE>
<CAPTION>
SHARES ISSUED
AS A
RESULT OF NET INCREASE
REINVESTED (DECREASE)
SHARES SOLD DIVIDENDS SHARES REPURCHASED OF SHARES
-------------------- --------------- ------------------------ ------------------------
1997 1996 1997 1996 1997 1996 1997 1996
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------
Money Market Series................ 3,412,073 5,746,206 -- 206,460 (3,322,312) (4,157,440) 89,761 1,795,226
U.S. Government Securities
Series........................... 160,438 1,061,458 -- 1,175,676 (2,062,042) (3,307,239) (1,901,604) (1,070,105)
Diversified Income Series.......... 125,322 532,522 -- 737,175 (756,134) (1,169,544) (630,812) 100,153
Global Bond Series................. 164,831 889,018 -- 89,211 (157,043) (324,860) 7,788 653,369
High Yield Series.................. 892,437 1,622,409 -- 371,174 (275,435) (548,867) 617,002 1,444,716
Asset Allocation Series............ 714,929 2,214,581 -- 1,169,911 (687,935) (1,459,586) 26,994 1,924,906
Global Asset Allocation Series..... 507,394 1,436,030 -- 123,737 (103,276) (295,210) 404,118 1,264,557
Value Series....................... 1,279,964 1,229,584 -- 6,662 (24,512) (10,203) 1,255,452 1,226,043
Growth & Income Series............. 2,540,315 4,220,664 -- 244,448 (228,975) (205,106) 2,311,340 4,260,006
S & P 500 Index Series............. 3,303,806 2,011,060 -- 10,638 (881,552) (104,913) 2,422,254 1,916,785
Blue Chip Stock Series............. 1,817,735 1,790,768 -- 5,170 (46,869) (287,305) 1,770,866 1,508,633
Global Growth Series............... 1,238,363 4,179,864 -- 23,217 (414,136) (384,054) 824,227 3,819,027
Growth Stock Series................ 448,206 2,229,103 -- 69,162 (818,987) (911,048) (370,781) 1,387,217
International Stock Series......... 877,055 2,586,940 -- 131,438 (109,300) (404,381) 767,755 2,313,997
Aggressive Growth Series........... 1,573,053 3,864,188 -- 12,491 (241,688) (463,405) 1,331,365 3,413,274
</TABLE>
80
<PAGE>
- --------------------------------------------------------------------------------
7. 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 1997** 1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 10.94 $ 10.83 $ 10.63 $ 10.23 $ 10.21 $ 10.15
-------- -------- -------- -------- -------- --------
Operations:
Investment income - net............... .30 .57 .60 .41 .28 .36
Net realized and unrealized gains
(losses) on investments............. (.01) -- -- (.01) .02 .06
-------- -------- -------- -------- -------- --------
Total from operations................... .29 .57 .60 .40 .30 .42
-------- -------- -------- -------- -------- --------
Distributions to shareholders:
From investment income - net.......... -- (.46) (.40) -- (.28) (.36)
-------- -------- -------- -------- -------- --------
Net asset value, end of period.......... $ 11.23 $ 10.94 $ 10.83 $ 10.63 $ 10.23 $ 10.21
-------- -------- -------- -------- -------- --------
Total Return @.......................... 2.59% 5.17% 5.71% 3.92% 2.77% 3.36%
Net assets end of period (000s
omitted).............................. $ 64,514 $ 61,906 $ 41,807 $ 44,833 $ 28,682 $ 27,528
Ratio of expenses to average daily net
assets................................ .37%* .38% .40% .40% .44% .46%
Ratio of net investment income to
average daily net assets.............. 5.41%* 5.14% 5.44% 3.96% 2.74% 3.51%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 1997.
@ These are the portfolio's 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 1997** 1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 10.57 $ 11.16 $ 9.40 $ 10.94 $ 10.73 $ 10.77
--------- --------- --------- --------- --------- ---------
Operations:
Investment income - net............... .38 .67 .70 .71 .74 .78
Net realized and unrealized gains
(losses) on investments............. (.07) (.51) 1.06 (1.54) .46 .15
--------- --------- --------- --------- --------- ---------
Total from operations................... .31 .16 1.76 (.83) 1.20 .93
--------- --------- --------- --------- --------- ---------
Distributions to shareholders:
From investment income - net.......... -- (.75) -- (.71) (.74) (.78)
From net realized gains............... -- -- -- -- (.24) (.19)
Excess distributions of net realized
gains............................... -- -- -- -- (.01) --
--------- --------- --------- --------- --------- ---------
Total distributions to shareholders..... -- (.75) -- (.71) (.99) (.97)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period.......... $ 10.88 $ 10.57 $ 11.16 $ 9.40 $ 10.94 $ 10.73
--------- --------- --------- --------- --------- ---------
Total Return @.......................... 2.91% 2.21% 18.78% (6.44%) 9.45% 6.14%
Net assets end of period (000s
omitted).............................. $ 145,700 $ 161,678 $ 182,687 $ 172,656 $ 235,588 $ 132,683
Ratio of expenses to average daily net
assets................................ .53%* .53% .53% .53% .52% .57%
Ratio of net investment income to
average daily net assets.............. 6.24%* 6.17% 6.78% 6.87% 6.49% 7.10%
Portfolio turnover rate................. 95% 176% 115% 187% 141% 135%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 1997.
@ These are the portfolio's total returns during the period.
81
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (continued)
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
7. FINANCIAL HIGHLIGHTS (continued):
Year Ended December 31
-----------------------------------------------------------------------
DIVERSIFIED INCOME SERIES 1997** 1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 11.70 $ 12.20 $ 10.40 $ 11.93 $ 11.34 $ 11.22
--------- --------- --------- -------- -------- --------
Operations:
Investment income - net............... .45 .82 .88 .87 .87 .82
Net realized and unrealized gains
(losses) on investments............. (.09) (.40) .92 (1.53) 1.03 .33
--------- --------- --------- -------- -------- --------
Total from operations................... .36 .42 1.80 (.66) 1.90 1.15
--------- --------- --------- -------- -------- --------
Distributions to shareholders:
From investment income - net.......... -- (.91) -- (.87) (.87) (.81)
From net realized gains............... -- -- -- -- (.43) (.21)
Excess distributions of net realized
gains............................... -- (.01) -- -- (.01) (.01)
--------- --------- --------- -------- -------- --------
Total distributions to shareholders..... -- (.92) -- (.87) (1.31) (1.03)
--------- --------- --------- -------- -------- --------
Net asset value, end of period.......... $ 12.06 $ 11.70 $ 12.20 $ 10.40 $ 11.93 $ 11.34
--------- --------- --------- -------- -------- --------
Total Return @.......................... 3.06% 4.15% 17.26% (5.22%) 12.76% 7.08%
Net assets end of period (000s
omitted).............................. $ 101,466 $ 105,831 $ 109,120 $ 98,314 $ 92,589 $ 28,490
Ratio of expenses to average daily net
assets................................ .55%* .55% .55% .55% .57% .67%
Ratio of net investment income to
average daily net assets.............. 7.15%* 6.86% 7.78% 7.59% 7.15% 7.08%
Portfolio turnover rate................. 106% 171% 139% 142% 125% 83%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 1997.
@ These are the portfolio's total returns during the period, including
reinvestment of all dividend and capital gains distributions.
<TABLE>
<CAPTION>
Year Ended December 31
--------------------------------
GLOBAL BOND SERIES 1997** 1996 1995***
<S> <C> <C> <C>
- ---------------------------------------------------------------------------
Net asset value, beginning of period.... $ 11.11 $ 11.30 $ 10.00
-------- -------- --------
Operations:
Investment income - net............... .19 .57 .54
Net realized and unrealized gains
(losses) on investments............. (.39) (.13) 1.52
-------- -------- --------
Total from operations................... (.20) .44 2.06
-------- -------- --------
Distributions to shareholders:
From investment income - net.......... -- (.43) (.54)
From net realized gains............... -- (.20) (.22)
-------- -------- --------
Total distributions to shareholders..... -- (.63) (.76)
-------- -------- --------
Net asset value, end of period.......... $ 10.91 $ 11.11 $ 11.30
-------- -------- --------
Total Return @.......................... (1.85%) 3.15% 19.02%
Net assets end of period (000s
omitted).............................. $ 19,939 $ 20,228 $13,187
Ratio of expenses to average daily net
assets................................ 1.01%* 1.02% 1.28%*
Ratio of net investment income to
average daily net assets.............. 4.58%* 5.07% 5.01%*
Portfolio turnover rate................. 84% 129% 184%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 1997.
*** 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 portfolio's total returns during the period, including
reinvestment of all dividend and capital gains distributions.
82
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
7. FINANCIAL HIGHLIGHTS (continued):
Year Ended December 31
--------------------------------------------
HIGH YIELD SERIES 1997** 1996 1995 1994***
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 9.83 $ 9.47 $ 9.47 $ 10.00
-------- -------- -------- --------
Operations:
Investment income - net............... .51 1.04 1.15 .71
Net realized and unrealized gains
(losses) on investments............. (.01) .13 .30 (.53)
-------- -------- -------- --------
Total from operations................... .50 1.17 1.45 (.18)
-------- -------- -------- --------
Distributions to shareholders:
From investment income - net.......... -- (1.03) (1.14) (.71)
Excess distributions of net realized
gains............................... -- (.05) (.04) --
-------- -------- -------- --------
Total distributions to shareholders..... -- (1.08) (1.18) (.71)
-------- -------- -------- --------
Net asset value, end of period.......... $ 10.33 $ 9.83 $ 9.74 $ 9.47
-------- -------- -------- --------
Total Return @.......................... 5.15% 10.52% 12.73% (.75%)
Net assets end of period (000s
omitted).............................. $ 51,147 $ 42,578 $ 28,129 $13,706
Ratio of expenses to average daily net
assets................................ .60%* .63% .63% .75%*
Ratio of net investment income to
average daily net assets.............. 10.37%* 10.22% 11.30% 10.44%*
Portfolio turnover rate................. 248% 235% 130% 20%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 1997.
*** 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 portfolio's total returns during the period, including
reinvestment of all dividend and capital gains distributions.
<TABLE>
<CAPTION>
Year Ended December 31
--------------------------------------------------------------------------
ASSET ALLOCATION SERIES 1997** 1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 16.99 $ 15.90 $ 13.56 $ 14.14 $ 13.28 $ 12.81
--------- --------- --------- --------- --------- ---------
Operations:
Investment income - net............... .26 .61 .65 .56 .52 .62
Net realized and unrealized gains
(losses) on investments............. 1.54 1.38 2.35 (.58) .92 .47
--------- --------- --------- --------- --------- ---------
Total from operations................... 1.80 1.99 3.00 (.02) 1.44 1.09
--------- --------- --------- --------- --------- ---------
Distributions to shareholders:
From investment income - net.......... -- (.61) (.64) (.56) (.52) (.62)
From net realized gains............... -- (.28) (.02) -- (.06) --
Excess distributions of net realized
gains............................... -- (.01) -- -- -- --
--------- --------- --------- --------- --------- ---------
Total distributions to shareholders..... -- (.90) (.66) (.56) (.58) (.62)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period.......... $ 18.79 $ 16.99 $ 15.90 $ 13.56 $ 14.14 $ 13.28
--------- --------- --------- --------- --------- ---------
Total Return @.......................... 10.56% 12.50% 21.97% (0.31%) 9.79% 6.95%
Net assets end of period (000s
omitted).............................. $ 440,205 $ 397,712 $ 341,511 $ 260,593 $ 204,603 $ 89,076
Ratio of expenses to average daily net
assets................................ .54%* .54% .55% .56% .56% .60%
Ratio of net investment income to
average daily net assets.............. 3.01%* 3.66% 4.25% 4.05% 3.72% 4.78%
Portfolio turnover rate................. 59% 115% 98% 73% 74% 54%
Average commission rate paid{::}........ $ .0685 $ .0748 $ -- $ -- $ -- $ --
</TABLE>
* Annualized
** For the six-month period ended June 30, 1997, including reinvestment
of all dividend and capital gains distributions.
@ These are the portfolio's total returns during the period, including
reinvestment of all dividend and capital gains distributions.
{::} In accordance with rules adopted by the Securities and Exchange
Commission, disclosure of average commission rate paid is required
beginning with fiscal year 1996. The amount represents total brokerage
commission paid on applicable purchases and sales of securities for
the period, divided by the total number of related shares purchased
and sold.
83
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (continued)
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
7. FINANCIAL HIGHLIGHTS (continued):
Year Ended December 31
--------------------------------
GLOBAL ASSET ALLOCATION SERIES 1997** 1996 1995***
<S> <C> <C> <C>
- ---------------------------------------------------------------------------
Net asset value, beginning of period.... $ 12.34 $ 11.42 $ 10.00
-------- -------- --------
Operations:
Investment income - net............... .16 .36 .35
Net realized and unrealized gains
(losses) on investments............. .89 1.19 1.55
-------- -------- --------
Total from operations................... 1.05 1.55 1.90
-------- -------- --------
Distributions to shareholders:
From investment income - net.......... -- (.38) (.34)
From net realized gains............... -- (.25) (.14)
-------- -------- --------
Total distributions to shareholders..... -- (.63) (.48)
-------- -------- --------
Net asset value, end of period.......... $ 13.39 $ 12.34 $ 11.42
-------- -------- --------
Total Return @.......................... 8.51% 12.72% 17.47%
Net assets end of period (000s
omitted).............................. $ 45,895 $ 37,307 $20,080
Ratio of expenses to average daily net
assets................................ 1.11%* 1.20% 1.28%*
Ratio of net investment income to
average daily net assets.............. 3.06%* 3.01% 3.26%*
Portfolio turnover rate................. 24% 46% 44%
Average commission rate paid{::}........ $ .0389 $ .0412 $ --
</TABLE>
* Annualized.
** For the six-month period ended June 30, 1997.
*** 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 portfolio's total returns during the period, including
reinvestment of all dividend and capital gains distributions.
{::} In accordance with rules adopted by the Securities and Exchange
Commission, disclosure of average commission rate paid is required
beginning with fiscal year 1996. The amount represents total brokerage
commission paid on applicable purchases and sales of securities for
the period divided by the total number of related shares purchased and
sold. The comparability of this information may be affected by the
fact that commission rates per share vary significantly among foreign
countries.
<TABLE>
<CAPTION>
Year Ended December
31
--------------------
VALUE SERIES 1997** 1996***
<S> <C> <C>
- ---------------------------------------------------------------
Net asset value, beginning of period.... $ 11.38 $ 10.27
-------- --------
Operations:
Investment income - net............... .09 .14
Net realized and unrealized gain
(loss) on investments............... 1.45 1.10
-------- --------
Total from operations................... 1.54 1.24
-------- --------
Distributions to shareholders:
From investment income - net.......... -- (.13)
-------- --------
Total Distributions to Shareholders..... -- (.13)
-------- --------
Net asset value, end of period.......... $ 12.92 $ 11.38
-------- --------
Total Return @.......................... 13.50% 11.49%
Net assets end of period (000s
omitted).............................. $ 32,055 $13,951
Ratio of expenses to average daily net
assets................................ 0.78%* 0.87%*
Ratio of net investment income to
average daily net assets.............. 1.55%* 1.72%*
Portfolio turnover rate................. 43% 36%
Average commission rate paid{::}........ $ 0.0606 $0.0556
</TABLE>
* Annualized.
** For the six-month period ended June 30, 1997.
*** For the period May 1, 1996 (commencement of operations) to December
31,1996. The portfolio's inception was March 28, 1996 when it was
initially capitalized. However, the portfolio's shares did not become
effectively registered under the Securities Act of 1933 until May 1,
1996. Information is not presented for the period from March 28, 1996
through May 1, 1996, as the portfolio's shares were not registered
during the period.
@ These are the portfolio's total returns during the periods, including
reinvestment of all dividends and capital gains distributions.
{::} In accordance with rules adopted by the Securities and Exchange
Commission, disclosure of average commission rate paid is required
beginning with fiscal year 1996. The amount represents total brokerage
commission paid on applicable purchases and sales of securities for
the period divided by the total number of related shares purchased and
sold. The comparability of this information may be affected by the
fact that commission rates per share vary significantly among foreign
countries.
84
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
7. FINANCIAL HIGHLIGHTS (continued):
Year Ended December 31
----------------------------------------------
GROWTH & INCOME SERIES 1997** 1996 1995 1994***
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 15.16 $ 12.83 $ 10.07 $ 10.00
--------- --------- -------- --------
Operations:
Investment income - net............... .22 .34 .33 .21
Net realized and unrealized gains
(losses) on investments............. 2.02 2.54 2.76 .07
--------- --------- -------- --------
Total from operations................... 2.24 2.88 3.09 .28
--------- --------- -------- --------
Distributions to shareholders:
From investment income - net.......... -- (.34) (.33) (.21)
From net realized gains............... -- (.21) -- --
--------- --------- -------- --------
Total distributions to shareholders..... -- (.55) (.33) (.21)
--------- --------- -------- --------
Net asset value, end of period.......... $ 17.40 $ 15.16 $ 12.83 $ 10.07
--------- --------- -------- --------
Total Return @.......................... 14.77% 21.51% 29.70% 1.74%
Net assets end of period (000s
omitted).............................. $ 195,084 $ 134,932 $ 59,533 $16,276
Ratio of expenses to average daily net
assets................................ .70%* .76% .80% .86%*
Ratio of net investment income to
average daily net assets.............. 2.73%* 2.38% 2.86% 3.12%*
Portfolio turnover rate................. 6% 20% 17% 2%
Average commission rate paid{::}........ $ .0740 $ .0688 $ -- $ --
</TABLE>
* Annualized.
** For the six-month period ended June 30, 1997.
*** 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 portfolio's total returns during the period, including
reinvestment of all dividend and capital gains distributions.
{::} In accordance with rules adopted by the Securities and Exchange
Commission, disclosure of average commission rate paid is required
beginning with fiscal year 1996. The amount represents total brokerage
commission paid on applicable purchases and sales of securities for
the period, divided by the total number of related shares purchases
and sold.
<TABLE>
<CAPTION>
Year Ended December
31
--------------------
S&P 500 INDEX SERIES 1997*** 1996**
<S> <C> <C>
- ---------------------------------------------------------------
Net asset value, beginning of period.... $ 11.47 $ 10.09
-------- --------
Operations:
Investment income - net............... .02 .10
Net realized and unrealized gain
(loss) on investments............... 2.27 1.37
-------- --------
Total from operations................... 2.29 1.47
-------- --------
Distributions to shareholders:
From investment income - net.......... -- (.09)
-------- --------
Total Distributions to Shareholders..... -- (.09)
-------- --------
Net asset value, end of period.......... $ 13.76 $ 11.47
-------- --------
Total Return @.......................... 20.01% 14.29%
Net assets end of period (000s
omitted).............................. $59,710 $ 21,979
Ratio of expenses to average daily net
assets................................ 0.51%* 0.79%*
Ratio of net investment income to
average daily net assets.............. 1.50%* 1.47%*
Portfolio turnover rate................. 4% 6%
Average commission rate paid{::}........ $0.0475 $ 0.0477
</TABLE>
* Annualized.
** For the period May 1,1996 (commencement of operations) to June 30,
1996. The portfolio's inception was March 28, 1996, when it was
initially capitalized. However, the portfolio's shares did not become
effectively registered under the Securities Act of 1933 until May1,
1996. Supplementary information is not presented for the period from
March 28, 1996, through May 1, 1996, as the portfolio's shares were
not registered during the period.
*** For the six-month period ended June 30, 1997.
@ These are the Fund's total return during the period, including
reinvestment of all dividend and capital gains distributions.
{::} In accordance with rules adopted by the Securities and Exchange
Commission, disclosure of average commission rate paid is required
beginning with fiscal year 1996. The amount represents total brokerage
commission paid on applicable purchases and sales of securities for
the period, divided by the total number of related shares purchased
and sold.
85
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (continued)
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
7. FINANCIAL HIGHLIGHTS (continued):
Year Ended December
31
--------------------
BLUE CHIP STOCK SERIES 1997** 1996***
<S> <C> <C>
- ---------------------------------------------------------------
Net asset value, beginning of period.... $ 11.67 $ 10.07
-------- --------
Operations:
Investment income - net............... .01 .07
Net realized and unrealized gain
(loss) on investments............... 1.72 1.60
-------- --------
Total from operations................... 1.73 1.67
-------- --------
Distributions to shareholders:
From investment income - net.......... -- (.07)
-------- --------
Total Distributions to Shareholders..... -- (.07)
-------- --------
Net asset value, end of period.......... $ 13.40 $ 11.67
-------- --------
Total Return @.......................... 14.80% 16.24%
Net assets end of period (000s
omitted).............................. $ 43,938 $17,606
Ratio of expenses to average daily net
assets................................ 1.00%* 1.13%*
Ratio of net investment income to
average daily net assets.............. 0.88%* 0.82%*
Portfolio turnover rate................. 12% 17%
Average commission rate paid{::}........ $ 0.0336 $0.0329
</TABLE>
* Annualized.
** For the six-month period ended June 30, 1997.
*** For the period May 1, 1996 (commencement of operations) to June 30,
1996. The portfolio's inception was March 28, 1996, when it was
initially capitalized. However, the portfolio's shares did not become
effectively registered under the Securities Act of 1933 until May 1,
1996. Supplementary information is not presented for the period from
March 28, 1996, through May 1, 1996, as the portfolio's shares were
not registered during the period.
@ These are the Fund's total return during the period, including
reinvestment of all dividend and capital gains distributions.
{::} In accordance with rules adopted by the Securities and Exchange
Commission, disclosure of average commission rate paid is required
beginning with fiscal year 1996. The amount represents total brokerage
commission paid on applicable purchases and sales of securities for
the period, divided by the total number of related shares purchased
and sold.
<TABLE>
<CAPTION>
Year Ended December 31
--------------------------------------------------------------------------
GLOBAL GROWTH SERIES 1997** 1996 1995 1994 1993 1992***
<S> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 19.00 $ 15.97 $ 12.31 $ 12.77 $ 10.86 $ 9.82
----------- --------- --------- --------- -------- --------
Operations:
Investment income - net............... .04 .03 .09 .10 .06 .05
Net realized and unrealized gains
(losses) on investments............. 1.22 3.03 3.66 (.46) 1.91 1.04
----------- --------- --------- --------- -------- --------
Total from operations................... 1.26 3.06 3.75 (.36) 1.97 1.09
----------- --------- --------- --------- -------- --------
Distributions to shareholders:
From investment income - net.......... -- (.03) (.09) (.10) (.06) (.05)
----------- --------- --------- --------- -------- --------
Net asset value, end of period.......... $ 20.26 $ 19.00 $ 15.97 $ 12.31 $ 12.77 $ 10.86
----------- --------- --------- --------- -------- --------
Total Return @.......................... 6.66% 19.10% 30.49% 2.98% 17.92% 10.88%
Net assets end of period (000s
omitted).............................. $ 357,817 $ 319,831 $ 207,913 $ 144,647 $ 75,882 $11,091
Ratio of expenses to average daily net
assets................................ .78%* .79% .80% .81% 1.02% 1.22%*
Ratio of net investment income to
average daily net assets.............. .47%* .15% .64% .82% .53% .73%*
Portfolio turnover rate................. 19% 14% 29% 20% 19% 21%
Average commission rate paid{::}........ $ .0190 $ .0295 $ -- $ -- $ -- $ --
</TABLE>
* Annualized.
** For the six-month period ended June 30, 1997.
*** 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 portfolio's total returns during the period, including
reinvestment of all dividend and capital gains distributions.
{::} In accordance with rules adopted by the Securities and Exchange
Commission, disclosure of average commission rate paid is required
beginning with fiscal year 1996. The amount represents total brokerage
commission paid on applicable purchases and sales of securities for
the period divided by the total number of related shares purchased and
sold. The comparability of this information may be affected by the
fact that commission rates per share vary significantly among foreign
countries.
86
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
7. FINANCIAL HIGHLIGHTS (continued):
Year Ended December 31
--------------------------------------------------------------------------
GROWTH STOCK SERIES 1997** 1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 32.59 $ 28.09 $ 22.11 $ 22.92 $ 21.15 $ 20.68
--------- --------- --------- --------- --------- ---------
Operations:
Investment income - net............... .05 .12 .13 .18 .09 .18
Net realized and unrealized gains
(losses) on investments............. 2.25 4.50 5.98 (.81) 1.77 .47
--------- --------- --------- --------- --------- ---------
Total from operations................... 2.30 4.62 6.11 (.63) 1.86 .65
--------- --------- --------- --------- --------- ---------
Distributions to shareholders:
From investment income - net.......... -- (.12) (.13) (.18) (.09) (.18)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period.......... $ 34.89 $ 32.59 $ 28.09 $ 22.11 $ 22.92 $ 21.15
--------- --------- --------- --------- --------- ---------
Total Return @.......................... 7.06% 16.41% 27.66% (2.82%) 8.78% 2.94%
Net assets end of period (000s
omitted).............................. $ 694,958 $ 661,217 $ 530,945 $ 377,483 $ 304,293 $ 188,172
Ratio of expenses to average daily net
assets................................ .67%* .67% .67% .68% .69% .76%
Ratio of net investment income to
average daily net assets.............. .29%* .39% .51% .81% .46% .92%
Portfolio turnover rate................. 10% 30% 20% 19% 26% 24%
Average commission rate paid{::}........ $ .0654 $ .0728 $ -- $ -- $ -- $ --
</TABLE>
* Annualized
** For the six-month period ended June 30, 1997.
@ These are the portfolio's total returns during the period, including
reinvestment of all dividend and capital gains distributions.
{::} In accordance with rules adopted by the Securities and Exchange
Commission, disclosure of average commission rate paid is required
beginning with fiscal year 1996. The amount represents total brokerage
commission paid on applicable purchases and sales of securities for
the period, divided by the total number of related shares purchased
and sold.
<TABLE>
<CAPTION>
Year Ended December 31
--------------------------------
INTERNATIONAL STOCK SERIES 1997** 1996 1995***
<S> <C> <C> <C>
- ---------------------------------------------------------------------------
Net asset value, beginning of period.... $ 12.44 $ 11.27 $ 10.00
-------- -------- --------
Operations:
Investment income - net............... .16 .20 .14
Net realized and unrealized gains
(losses) on investments............. 1.57 1.48 1.38
-------- -------- --------
Total from operations................... 1.68 1.68 1.52
-------- -------- --------
Distributions to shareholders:
From investment income - net.......... -- (.21) (.09)
From net realized gains............... -- (.30) (.16)
-------- -------- --------
Total distributions to shareholders..... -- (.51) (.25)
-------- -------- --------
Net asset value, end of period.......... $ 14.01 $ 12.44 $ 11.27
-------- -------- --------
Total Return @.......................... 12.62% 14.02% 14.35%
Net assets end of period (000s
omitted).............................. $ 69,693 $ 52,331 $21,327
Ratio of expenses to average daily net
assets................................ 1.02%* 1.15% 1.14%*
Ratio of net investment income to
average daily net assets.............. 2.45%* 1.71% 1.41%*
Portfolio turnover rate................. 22% 27% 39%
Average commission rate paid{::}........ $ .0344 $ .0363 $ --
</TABLE>
* Annualized.
** For the six-month period ended June 30, 1997.
*** 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 portfolio's total returns during the period, including
reinvestment of all dividend and capital gains distributions.
{::} In accordance with rules adopted by the Securities and Exchange
Commission, disclosure of average commission rate paid is required
beginning with fiscal year 1996. The amount represents total brokerage
commission paid on applicable purchases and sales of securities for
the period, divided by the total number of related shares purchased
and sold. The comparability of this information may be affected by the
fact that commission rates per share vary significantly among foreign
countries.
87
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (continued)
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
7. FINANCIAL HIGHLIGHTS (continued):
Year Ended December 31
---------------------------------------------
AGGRESSIVE GROWTH SERIES 1997** 1996 1995 1994***
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 13.62 $ 12.68 $ 9.80 $ 10.03
--------- -------- -------- --------
Operations:
Investment income - net............... .02 .03 .07 .08
Net realized and unrealized gains
(losses) on investments............. (.77) .94 2.88 (.23)
--------- -------- -------- --------
Total from operations................... (.75) .97 2.95 (.15)
--------- -------- -------- --------
Distributions to shareholders:
From investment income - net.......... -- (.03) (.07) (.08)
--------- -------- -------- --------
Net asset value, end of period.......... $ 12.87 $ 13.62 $ 12.68 $ 9.80
--------- -------- -------- --------
Total Return @.......................... (5.53%) 7.64% 29.89% (1.89%)
Net assets end of period (000s
omitted).............................. $ 108,706 $ 96,931 $ 46,943 $13,526
Ratio of expenses to average daily net
assets................................ .78%* .78% .81% .88%*
Ratio of net investment income to
average daily net assets.............. .37%* .22% .58% 1.24%*
Portfolio turnover rate................. 15% 22% 21% 5%
Average commission rate paid{::}........ $ .0646 $ .0692 $ -- $ --
</TABLE>
* Annualized.
** For the six-month period ended June 30, 1997.
*** 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 portfolio's total returns during the period, including
reinvestment of all dividend and capital gains distributions.
{::} In accordance with rules adopted by the Securities and Exchange
Commission, disclosure of average commission rate paid is required
beginning with fiscal year 1996. The amount represents total brokerage
commission paid on applicable purchases and sales of securities for
the period, divided by the total number of related shares purchased
and sold.
88
<PAGE>
DIRECTORS AND OFFICERS
DIRECTORS Richard W. Cutting CPA AND FINANCIAL CONSULTANT
Allen R. Freedman CHAIRMAN AND CHIEF EXECUTIVE OFFICER,
FORTIS, INC. MANAGING DIRECTOR OF
FORTIS INTERNATIONAL, N.V.
Dr. Robert M. Gavin INTERIM PRESIDENT, HAVERFORD COLLEGE.
PRIOR TO JULY 1996, PRESIDENT
MACALESTER COLLEGE
Jean L. King PRESIDENT, COMMUNI-KING
Dean C. Kopperud CHIEF EXECUTIVE OFFICER AND DIRECTOR,
FORTIS ADVISERS, INC. PRESIDENT AND
DIRECTOR, FORTIS INVESTORS, INC.
SENIOR VICE PRESIDENT AND DIRECTOR,
FORTIS BENEFITS INSURANCE COMPANY AND
TIME INSURANCE COMPANY
Edward M. Mahoney PRIOR TO JANUARY, 1995, CHAIRMAN AND
CHIEF EXECUTIVE OFFICER, FORTIS
ADVISERS, INC., FORTIS INVESTORS,
INC.
Robb L. Prince FINANCIAL AND EMPLOYEE BENEFIT
CONSULTANT PRIOR TO JULY, 1995, VICE
PRESIDENT AND TREASURER, JOSTENS,
INC.
Leonard J. Santow PRINCIPAL, GRIGGS & SANTOW, INC.
Joseph M. Wikler INVESTMENT CONSULTANT AND PRIVATE
INVESTOR PRIOR TO JANUARY, 1994,
DIRECTOR OF RESEARCH, CHIEF
INVESTMENT OFFICER, PRINCIPAL, AND
DIRECTOR, THE ROTHSCHILD CO.
OFFICERS
Dean C. Kopperud
PRESIDENT AND DIRECTOR
Robert W. Beltz, Jr.
VICE PRESIDENT
James S. Byrd
VICE PRESIDENT
Tamara L. Fagely
VICE PRESIDENT AND TREASURER
Howard G. Hudson
VICE PRESIDENT
David A. Peterson
VICE PRESIDENT
Scott R. Plummer
VICE PRESIDENT
Rhonda J. Schwartz
VICE PRESIDENT
Gary N. Yalen
VICE PRESIDENT
Michael J. Radmer
SECRETARY
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 LLP
MINNEAPOLIS, MINNESOTA
INDEPENDENT AUDITORS KPMG Peat Marwick LLP
MINNEAPOLIS, MINNESOTA
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prospectus.
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