<PAGE>
[LOGO]
SOLID PARTNERS, FLEXIBLE SOLUTIONS-SM-
Bringing you a world of opportunity...
FORTIS SERIES FUND, INC.
SEMIANNUAL REPORT
JUNE 30, 1998
FORTIS FINANCIAL GROUP
<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
SERIES SERIES SERIES SERIES SERIES SERIES SERIES
-------- ---------- ----------- ----------- ----------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
FOR THE SIX-MONTH PERIOD
ENDED JUNE 30, 1999:
NET ASSET VALUE PER SHARE:
Beginning of period................... $11.06 $10.93 $11.91 $11.56 $9.91 $14.32 $21.09
End of period......................... $11.32 $10.69 $11.70 $10.56 $9.87 $14.16 $22.25
ACCUMULATION UNIT PERFORMANCE:
Fortis Opportunity Annuity/Masters
Variable Annuity.................... +1.62% -2.81% -2.49% -9.30% -0.98% -1.77% +4.78%
Harmony Investment Life............... +1.93% -2.51% -2.19% -9.03% -0.69% -1.48% +5.09%
Wall Street Series 220/500............ +1.71% -2.72% -2.40% -9.22% -0.89% -1.69% +4.88%
Wall Street Series Survivor........... +1.62% -2.81% -2.49% -9.30% -0.98% -1.77% +4.78%
Empower Variable Annuity.............. +1.67% -2.76% -2.44% -9.26% -0.93% -1.72% +4.83%
Wall Street Series*................... +0.73% -1.42% -1.98% -3.47% -2.76% -0.87% 0.00%
<CAPTION>
GROWTH &
VALUE INCOME
SERIES SERIES
------ --------
<S> <C> <C>
FOR THE SIX-MONTH PERIOD
ENDED JUNE 30, 1999:
NET ASSET VALUE PER SHARE:
Beginning of period................... $14.38 $21.23
End of period......................... $15.89 $22.88
ACCUMULATION UNIT PERFORMANCE:
Fortis Opportunity Annuity/Masters
Variable Annuity.................... +9.78% +7.09%
Harmony Investment Life............... +10.11% +7.41%
Wall Street Series 220/500............ +9.88% +7.18%
Wall Street Series Survivor........... +9.78% +7.09%
Empower Variable Annuity.............. +9.83% +7.14%
Wall Street Series*................... -0.44% -0.09%
</TABLE>
<TABLE>
<CAPTION>
S&P BLUE CHIP INTERNATIONAL MID CAP SMALL CAP GLOBAL LARGE CAP
500 INDEX STOCK STOCK STOCK VALUE GROWTH GROWTH
SERIES SERIES SERIES SERIES SERIES SERIES SERIES
--------- --------- ------------- ------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
FOR THE SIX-MONTH PERIOD
ENDED JUNE 30, 1999:
NET ASSET VALUE PER SHARE:
Beginning of period................... $18.83 $18.58 $14.48 $ 9.64 $ 9.28 $ 22.57 $12.04
End of period......................... $21.10 $20.40 $15.29 $10.03 $10.79 $ 24.90 $13.78
ACCUMULATION UNIT PERFORMANCE:
Fortis Opportunity Annuity/ Masters
Variable Annuity.................... +11.29% +9.07% +4.84% +3.42% +15.53% +9.61% +13.66%
Harmony Investment Life............... +11.62% +9.39% +5.15% +3.73% +15.88% +9.94% +14.00%
Wall Street Series 220/500............ +11.39% +9.16% +4.93% +3.51% +15.64% +9.71% +13.76%
Wall Street Series Survivor........... +11.29% +9.07% +4.84% +3.42% +15.53% +9.61% +13.66%
Empower Variable Annuity.............. +11.34% +9.12% +4.89% +3.47% +15.59% +9.67% +13.72%
Wall Street Series*................... +1.50% +1.98% +0.28% +4.75% +7.90% +6.17% +3.81%
<CAPTION>
GROWTH AGGRESSIVE
STOCK GROWTH
SERIES SERIES
--------- ----------
<S> <C> <C>
FOR THE SIX-MONTH PERIOD
ENDED JUNE 30, 1999:
NET ASSET VALUE PER SHARE:
Beginning of period................... $41.09 $16.70
End of period......................... $43.23 $20.01
ACCUMULATION UNIT PERFORMANCE:
Fortis Opportunity Annuity/ Masters
Variable Annuity.................... +4.51% +19.01%
Harmony Investment Life............... +4.82% +19.36%
Wall Street Series 220/500............ +4.60% +19.11%
Wall Street Series Survivor........... +4.51% +19.01%
Empower Variable Annuity.............. +4.56% +19.07%
Wall Street Series*................... +3.90% +13.66%
</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, 1999:
Investment Advisory and
Management Fee....................... .30% .47% .47% .75% .50% .90% .47% .70%
Other Expenses.......................... .04% .05% .06% .14% .06% .10% .04% .06%
------ --- --- ------ ------ ----- --- ------
TOTAL FORTIS SERIES OPERATING EXPENSES.. .34% .52% .53% .89% .56% 1.00% .51% .76%
------ --- --- ------ ------ ----- --- ------
<CAPTION>
GROWTH &
INCOME
SERIES
--------
<S> <C>
FOR THE SIX-MONTH PERIOD
ENDED JUNE 30, 1999:
Investment Advisory and
Management Fee....................... .63%
Other Expenses.......................... .05%
---
TOTAL FORTIS SERIES OPERATING EXPENSES.. .68%
---
</TABLE>
<TABLE>
<CAPTION>
S&P BLUE CHIP INTERNATIONAL MID CAP SMALL CAP GLOBAL LARGE CAP GROWTH
500 INDEX STOCK STOCK STOCK VALUE GROWTH GROWTH STOCK
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, 1999:
Investment Advisory and Management
Fee................................... .40% .87% .85% .90% .90% .70% .90% .61%
Other Expenses.......................... .06% .05% .09% .33% .16% .06% .08% .05%
--- --- --- ------- --------- ------ --------- ------
TOTAL FORTIS SERIES OPERATING
EXPENSES.............................. .46% .92% .94% 1.23% 1.06% .76% .98% .66%
--- --- --- ------- --------- ------ --------- ------
<CAPTION>
AGGRESSIVE
GROWTH
SERIES
----------
<S> <C>
FOR THE SIX-MONTH PERIOD
ENDED JUNE 30, 1999:
Investment Advisory and Management
Fee................................... .67%
Other Expenses.......................... .06%
---
TOTAL FORTIS SERIES OPERATING
EXPENSES.............................. .73%
---
</TABLE>
* For the period May 3, 1999 to June 30, 1999.
** Represents the expenses of the series itself, without the expenses associated
with the variable annuities or variable universal life insurance policies,
(annualized).
<PAGE>
HOW TO USE THIS REPORT
For a quick overview of the portfolio'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 invest, and the pie chart shows a breakdown of the
portfolios' assets by sector. The portfolio changes show the largest 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 portfolio 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>
<CAPTION>
CONTENTS
<S> <C>
Letter to Shareholders 2
Schedules of Investments
Money Market Series 21
U.S. Government Securities Series 22
Diversified Income Series 24
Global Bond Series 30
High Yield Series 32
Global Asset Allocation Series 37
Asset Allocation Series 42
Value Series 51
Growth & Income Series 54
S&P 500 Index Series 57
Blue Chip Stock Series 62
International Stock Series 65
Mid Cap Stock Series 68
Small Cap Value Series 70
Global Growth Series 72
Large Cap Growth Series 76
Growth Stock Series 78
Aggressive Growth Series 81
Statements of Assets and Liabilities 84
Statements of Operations 87
Statements of Changes in Net Assets 90
Notes to Financial Statements 93
Directors and Officers 108
Products and Services 109
</TABLE>
1
<PAGE>
[PHOTO]
FORTIS SERIES FUND, INC. SEMI-ANNUAL REPORT,
JUNE 30, 1999
DEAR SHAREHOLDER:
Fueled by strong economic growth, particularly among consumers, corporate
profits and revenue growth are expanding. In addition to strong growth
domestically, international markets appear to be in the bottoming process with
some showing strength which is leading to better demand around the globe. Buoyed
by significant tax refunds and positive consumer attitudes stemming from rising
real wages and confidence in employment, consumer spending on autos, housing,
and related items helped generate GDP growth of approximately 5.0% for the first
half of 1999. Given that inventories were very low, this growth surge has
resulted in strong demand for commodities, such as oil and paper, which has led
to a firming in prices and resulted in somewhat higher inflation than we
experienced in the previous 18 months. The bond market reacted swiftly to the
scent of inflation and the Federal Reserve Board echoed with a 25 basis point
increase in interest rates late in the month of June.
Strong economies are good environments for stocks. One of the by-products of
this strength is that a broad range of industries and companies are
participating in the economic recovery. As a result, investors who had flocked
to very large, secure growth companies for most of 1998, found that good growth
could be found, at much lower prices, in industries which had been ignored. As a
result, early in the second quarter, the equity market experienced a sea change
for the first time in over two years, resulting in strong performance of value
and small cap stocks. Many growth oriented styles have not fared as well in the
most recent reporting period.
For the first half of the year, the DJIA advanced 20.45%; the Russell 2000,
9.25%; the MSCI World Index, 8.69; the S&P 500 Index 12.38% and the S&P MidCap
Index, 6.88%. Sectors which are sensitive to economic activity, trade, and raw
materials including capital equipment, energy, and basic materials are up more
than twice the rate of the overall market. The shift in emphasis away from
consumer and technology stocks reflects the improvement in the outlook for the
production side of the economy which is benefiting from improved demand and
pricing. We believe that this trend should persist through year-end, especially
if "just-in case" inventory building occurs due to fears about Year 2000
problems.
The rotation in the equity market towards a broader group of stocks in terms of
both sectors and cap sizes is encouraging. Although it has the impact of a
correction for some stocks, it is healthy for the market to pause. We expect the
S&P 500 to trade in a broad range for the next several months. In as much as
Fortis's equity effort is oriented towards a growth style, the current market
environment is very challenging for our mutual funds. We have diversified our
sectors more fully and believe that we are better positioned for the trading
range market we expect.
During the first six months of 1999, the financial markets wrestled with the
implications of a continued broad economic expansion. The bond market was
particularly focused on the inflationary potential inherent in the strength of
domestic activity. Correspondingly, the interest rate environment, as reflected
in the thirty year Treasury bond, began a steady rise from just above 5% at the
beginning of the year to near 6% at the end of June. This rise in rates
reflected the close historical association of tightening labor markets with wage
pressures and rising prices, an association which received increasingly vocal
attention from the nations central bank, most notably its chairman, Allen
Greenspan, as the second quarter unfolded. Indeed, interest rates rose to a high
of 6.15% on the thirty-year Treasury as the market forced up yield on fixed
income securities in anticipation of tightened monetary policy, manifested by
the prospects for, and then the reality of, a Federal Funds rate increase of 1/4
of 1%, in late June.
The outlook for rates in the near term reflects a monetary policy geared toward
further tightening. We believe that the Federal Reserve will perservere until
the growth rate in real GDP is reduced sufficiently to take pressure out of the
labor market and remove inflation risk from the economy. This environment,
therefore, is quite favorable for the longer term outlook for interest rates and
bond performance. Given current rate levels, with Treasury yields above 6% and
inflation at about 2%, the difference, or "real " rate, remains at an
historically attractive level. There is a good chance that this circumstance
will provide a window of buying opportunity through the coming months and prior
to year end.
Thank you for your investment in Fortis. We appreciate your continued confidence
in our management of your investment.
Sincerely,
<TABLE>
<S> <C> <C>
/s/ Dean C. Kopperud /s/ Lucinda S. Mezey /s/ Howard G. Hudson
Dean C. Kopperud Lucinda S. Mezey Howard G. Hudson
President Vice President, Equities Vice President, Fixed Income
</TABLE>
2
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY AS OF 6/30/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Diversified Finance 20.4%
Consumer Financing 17.5%
Captive Auto Finance 16.5%
Banks 15.6%
Brokerage and Investment 8.7%
Utilities-Electric 4.5%
Oil-Refining 4.3%
Captive Oil Finance 4.3%
Captive Equipment Finance 4.2%
Industrial 4.0%
</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.
Strong job growth and high levels of consumer spending continued to fuel the
economy in 1999, which should produce at least 4% Real GDP growth for the first
half of the year. This growth, coupled with signs of recovery in the global
economy and a rallying U.S. stock market raised concerns at the Fed about the
potential for inflation. Finally, after numerous warnings during the second
quarter about the need for a pre-emptive interest rate policy, the Federal Open
Market Committee (FOMC) raised the federal funds rate by .25%, from 4.75% to
5.00%. As a result, short term interest rates ended the first half of 1999 at
their high for the year, as 90-Day Commercial Paper rates rose from 4.80% on
December 31, 1998, to 5.10% at the end of June. For the six months ended June
30, 1999 the fund returned 2.31%.
Our concerns about the possibility of the Federal Reserve raising short term
interest rates caused us to reduce the average maturity of the fund from 60 days
in early January to 43 days right now (we consider 45-50 days to be a neutral
target for the portfolio.) In addition, we continued to emphasize liquidity and
quality in the portfolio, as the prospects of higher rates necessitate increased
flexibility to adjust the fund's average maturity.
OUTLOOK
Going forward, we expect the rise in interest rates during the first half will
slow economic growth to a more sustainable 3-3.5% growth rate. We also expect
that inflation will remain low, although potentially higher than its current 2%
level. However, like the Fed, we will be sensitive to signs of potential
inflation. Specifically, we will look for indications of increased wage pressure
(without an offsetting increase in productivity), further evidence that foreign
economies are mounting sustained recoveries, and a continuation of strong
consumer spending fueled by rising stock markets. Should any or all of these
factors produce signs of potential inflation, we expect that the Federal Reserve
will keep their promise and act pre-emptively by raising short-term interest
rates.
3
<PAGE>
PORTFOLIO ALLOCATION
AS OF 6/30/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
FNMAs 40.1%
Other Direct Federal
Obligations 23.8%
U.S. Treasury Securities 20.1%
GNMAs 5.8%
Cash Equivalents/Receivables 4.9%
FHLMCs 3.0%
Other 2.3%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/99
<TABLE>
<CAPTION>
Percent of
Bonds Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. TVA Global (6.375%) 2005 10.2%
2. U.S. Treasury Note (6.125) 2007 6.8%
3. Federal Home Loan Bank (7.31%) 2004 5.6%
4. FNMA (6.00%) 2029 3.9%
5. GNMA (7.50%) 2027 3.8%
6. U.S. Treasury Bond (8.125%) 2021 3.8%
7. Federal Farm Credit Bank (5.70%) 2001 3.4%
8. FNMA (7.00%) 2028 3.3%
9. U.S. Treasury Note (6.125%) 2001 2.9%
10. FNMA (6.58%) 2007 2.7%
</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 ITS
INVESTMENTS IN U.S. GOVERNMENT BONDS, TREASURIES AND GOVERNMENT AGENCY
MORTGAGE-BACKED SECURITIES.
Strong job growth and high levels of consumer spending continued to fuel the
economy in 1999, which should produce at least 4% Real GDP growth for the first
half of the year. This growth, coupled with signs of recovery in the global
economy and a rallying U.S. stock market raised concerns at the Fed about the
potential for inflation. During the course of the first half of the year, Fed
Chairman Alan Greenspan, made clear his concerns about the potential
inflationary impact of continued economic strength, stressing the need for the
Federal Reserve to act pre-emptively to control inflation. In anticipation of a
tightening in monetary policy, interest rates rose significantly during the
first half of the year, with 30-year U.S. Treasury yields increasing nearly
0.90% to 5.97%, and 2-Yr yields increasing by 1.0% to 5.52%. Finally, on June
30, the Federal Open Market Committee (FOMC) raised the Federal Funds rate 0.25%
to 5.0%, a move long expected by the market. After raising short term interest
rates, the FOMC returned to a neutral directive regarding future policy changes.
They did stress, however, that they will be "especially alert to the emergence,
or potential emergence, of inflationary forces that could undermine economic
growth".
Once we became convinced (in early April) that the Federal Reserve planned to
tighten monetary policy, we shortened our portfolio duration. In addition, in
January we increased our mortgage backed securities exposure, moving from a
slight underweight to our current 10% overweight. At the time, mortgage backed
securities yield spreads relative to Treasuries remained close to the levels
seen during the 4th quarter 1998 financial crisis, despite the subsequent market
stabilization. As a result, we felt these securities were especially attractive.
Unfortunately, the outperformance associated with our mortgage backed securities
overweight was not enough to offset the negative impact of the sharp rise in
interest rates. As a result, the portfolio produced a -2.15% total return for
the first half, compared to -0.47% for the Lehman Brothers Intermediate
Government Index.
OUTLOOK
We expect the rise in interest rates during the first half will slow economic
growth to a more sustainable 3-3.5% growth rate in the second half of the year.
We also expect that inflation will remain low, although potentially higher than
its current 2% level. Like the Fed, however, we will be wary of those factors
that could create greater inflationary pressures. Specifically, we will look for
indications of increased wage pressure (without an offsetting increase in
productivity), further evidence that foreign economies are mounting sustained
recoveries, and a continuation of strong consumer spending fueled by rising
stock markets. Should any or all of these factors produce signs of inflation, we
would expect a further increase in interest rates as the market anticipates
additional short term rate increases from the Fed.
VALUE OF $10,000 INVESTED JULY 1, 1989
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C> <C>
LEHMAN BROTHERS
INTERMEDIATE U.S. GOVERNMENT
GOV'T SECURITIES
BOND INDEX** SERIES
07/01/89 $10,000 $10,000
90 $10,772 $10,743
91 $11,908 $11,714
92 $13,439 $13,187
93 $14,788 $14,704
94 $14,760 $13,953
95 $16,200 $15,618
96 $16,998 $16,299
97 $18,179 $17,538
98 $19,703 $19,339
99 $20,576 $19,804
U.S. GOVERNMENT
SECURITIES SERIES
AVERAGE ANNUAL
TOTAL RETURN*
1 YEAR 5 YEAR 10 YEAR
+2.41% +7.25% +7.07%
</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.
** An unmanaged index of government bonds with an average maturity of three to
four years.
4
<PAGE>
PORTFOLIO ALLOCATION AS OF 6/30/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Corporate Bonds - Investment Grade 48.2%
Corporate Bonds - Non-Investment Grade 18.0%
Asset Backed Securities 13.4%
U.S. Government Agencies 9.8%
U.S. Treasury Securities 7.8%
Cash Equivalent/Receivables 2.8%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/99
<TABLE>
<CAPTION>
Percent of
Bonds Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. U.S. Treasury Strip (6.04%) 2019 2.8%
2. U.S. Treasury Note (6.125%) 2007 2.8%
3. FNMA (6.00%) 2013 2.4%
4. FNMA (7.00%) 2028 2.4%
5. U.S. Treasury Bond (8.125%) 2021 2.2%
6. GTE Corp. (7.51%) 2009 1.9%
7. Nationslink Funding Corp. (7.51%) 2005 1.8%
8. Mortgage Capital Funding, Inc. (7.90%) 2006 1.6%
9. Delta Air Lines (10.50%) 2016 1.5%
10. DLJ Mortgage Acceptance Corp. (8.80%) 2003 1.4%
</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.
Concerns about a global recession continued into January 1999, but the outlook
improved thereafter, despite Brazil's currency devaluation. As Korea's economy
recovered, and Japan's business confidence was revived, the focus shifted to
worries of stronger U.S. economic growth which might fuel inflation. These
worries were also voiced by the Federal Reserve Chairman, Alan Greenspan, who
reevaluated last fall's easing. Subsequently, in the first six months Treasury
yields rose more than 1% in some maturities reflecting anticipation of a tighter
monetary policy. The 30-year U.S. Treasury yields increased 0.88% to 5.97% . On
June 30, the Federal Open Market Committee (FOMC) raised the Federal Funds rate
0.25% to 5.0%, giving teeth to their earlier vocalized concerns. While the FOMC
returned to a neutral inter-meeting policy directive, they did point to the
"potential emergence, of inflationary forces that could undermine economic
growth," suggesting further vigilance, and possibly, tightening in the future.
Improvement in global economies in the beginning of the year also contributed to
the increase in liquidity for spread products (non-Treasury securities),
particularly in the corporate market. Stronger demand for debt obligations that
command a yield premium to U.S. Treasuries, along with Korea's upgrade by the
rating agencies, generated good momentum that caused the yield premium, or
spread, to tighten. Although some of that tightening was lost later in the
period, when inflation became a concern, Corporate bonds ended the first half of
the year having outperformed U.S. Treasuries.
In the beginning of the year we lengthened the portfolio's duration in relation
to the benchmark and increased our exposure to corporate bonds at the expense of
U.S. Treasuries and mortgage backed securities. Once it became apparent that the
Federal Reserve was convinced that a pre-emptive move was needed, we reduced our
portfolio duration to that of the benchmark and reduced our overweighting in
corporate bonds. The portfolio produced a -1.83% total return for the first half
of the year, compared to -1.37% for the Lehman Brothers Aggregate Index, and
- -2.27% for the Lehman Brothers Goverment/Corporate Index.
OUTLOOK
We anticipate economic growth in the second half of the year to be affected by
higher interest rates, slowing to a more sustainable level of 3-3.5% real rate.
We also expect that inflation will remain low, although potentially higher than
its current 2% level. However, further improvement in foreign economies, a
continued strength in consumer spending and increased wage pressure could result
in further rate increases and some widening of non-government yield spread.
While the situation is volatile, we believe that the market has substantially
discounted a number of negatives and will offer attractive investment
opportunity during the upcoming months.
VALUE OF $10,000 INVESTED JULY 1, 1989
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
LEHMAN BROTHERS
AGGREGATE BOND INDEX** DIVERSIFIED INCOME SERIES
<S> <C> <C>
07/01/89 $10,000 $10,000
90 $10,785 $10,827
91 $11,939 $11,911
92 $13,616 $13,417
93 $15,220 $15,234
94 $15,022 $14,836
95 $16,907 $16,521
96 $17,755 $17,354
97 $18,202 $18,936
98 $21,227 $21,015
99 $21,894 $21,068
DIVERSIFIED INCOME SERIES
AVERAGE ANNUAL TOTAL RETURN*
1 YEAR 5 YEAR 10 YEAR
+0.25 +7.27 +7.74
</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.
** An unmanaged index of government, corporate and mortgage-backed securities
with an average maturity of approximately nine years.
5
<PAGE>
PORTFOLIO DIVERSIFICATION BY COUNTRY AS OF 6/30/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
United States 34.1%
Germany 24.1%
Denmark 7.6%
Australia 6.6%
Canada 5.8%
Cash Equivalents/Receivables 5.8%
France 5.8%
United Kingdom 5.7%
Austria 2.9%
Netherlands 1.6%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/99
<TABLE>
<CAPTION>
Percent of
Bonds Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Bundesobligation (ECU) (3.25%) 2003 6.3%
2. Government of France (ECU) (4.50%) 2002 5.8%
3. U.K. Treasury (9.00%) 2008 5.7%
4. Bundesrepublic Deutschland (ECU) (6.00%) 2006 5.6%
5. FNMA (5.125%) 2004 4.9%
6. U.S. Treasury Note (7.50%) 2005 4.9%
7. U.S. Treasury Note (12.50%) 2014 4.8%
8. Kingdom of Denmark (9.00%) 2000 4.5%
9. Bundesobligation (ECU) (4.50%) 2003 4.2%
10. General Electric Capital Corp (8.125%) 3.6%
</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.
Over the first six months of the year, the fund returned -8.69% versus a return
of -7.17% for the benchmark Salomon Brothers World Government Bond Index. The
underperformance was attributed to the fund's overweighting of the poorly
performing U.S. bond market and the underweighting of the low-yielding but
outperforming Japanese bond market. These negatives overwhelmed the portfolio's
positive positioning in European bonds and the overweighting of the US dollar
versus the weakening euro.
The first half of the year saw the US economy continue to perform strongly,
together with the first signs of recovery in Japan. Both events were helped by
the monetary easing by central banks following the financial crisis last autumn.
However, this unexpectedly strong global growth led to a poor environment for
the world's fixed income markets as expectations for rising interest rates
increased. On the currency front, the euro continued to weaken throughout the
period driven by the relative weakness in the euro-zone economy, the conflict in
Kosovo and political concerns throughout the area.
Looking forward, the continuing absence of global inflationary pressures should
create a positive environment for the world's bond markets. In the shorter-term,
however, the effects of unexpectedly robust economic growth have pushed interest
rates higher. The manager's view is that this current surge in economic growth
is temporary and that the pressures for higher rates should subside creating a
buying opportunity for bonds during the second half of the year.
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>
01/03/95 $10,000 $10,000
95 $11,688 $11,541
96 $11,728 $11,588
97 $12,183 $12,083
98 $12,708 $12,715
99 $13,186 $12,774
GLOBAL BOND SERIES
AVERAGE ANNUAL TOTAL RETURN*
SINCE
1 YEAR JANUARY 3, 1995**
+0.47% +5.60%
</TABLE>
Annual period ended June 30
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of world government bonds with maturities of at least
one year.
6
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY
AS OF 6/30/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 29.1%
Telecommunications 20.6%
Cable Television 13.1%
Cash Equivalents/Receivables 9.9%
Broadcasting 7.2%
Printing 4.2%
Leisure Time - Amusements 3.9%
Automobile & Motor Vehicle Parts 3.0%
Telephone Services 2.3%
Textile Manufacturing 2.5%
Food - Miscellaneous 2.1%
Chemicals 2.1%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/99
<TABLE>
<CAPTION>
Percent of
Bonds Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Chancellor Media Corp (8.00%) 2008 3.4%
2. Telecorp PCS, Inc. (11.625%) 2009 2.3%
3. Argosy Gaming (10.75%) 2009 2.1%
4. Nextel Communications, Inc. (9.12%) 2007 2.0%
5. Charter Communications Holdings LLC (9.92%) 2011 1.7%
6. NTL, Inc. (12.38%) 2008 1.7%
7. Splitrock Services, Inc. (11.75%) 2008 1.6%
8. Comcast Cellular Holdings (9.50%) 2007 1.6%
9. ITC Deltacom, Inc. (11.00%) 2007 1.5%
10. Simonds Industries (10.25%) 2006 1.5%
</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.
Although the stock markets recovered relatively quickly from last year's global
financial markets crisis and the outlook for corporate profits remains
optimistic, the high yield market so far this year has been relatively flat,
with corporate outlook improvements being negated by increasing interest rates
and lack of investor inflows. For the six-month period ended June 30, 1999, the
High Yield Series recorded a -.32% total return. The return for the Lehman
Brothers High Yield Index was and 2.20%.
While our shift into higher quality bonds within the high yield universe has
helped our credit risk profile and improved our performance late last year, it
has hurt our relative performance this year as lower quality credits came back
strong so far this year. Meanwhile, the recent declines in Treasury bonds have
hurt performance due to our overweighting in higher quality, lower coupon bonds
(which are more interest rate sensitive). Overweighting in media and
telecommunications sectors were helpful as they continue to outperform; while
underweighting in energy and cyclicals hurt the fund somewhat as commodity
prices improved.
We feel that the outlook for the high yield sector remains positive as the U.S.
economy continues to show solid growth and emerging markets begin to show signs
of an impending recovery. As corporate profits continue to grow and yields
remain relatively high, we think that total returns in high yield sector should
improve in the near future.
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 $11,425 $10,817
96 $12,531 $11,694
97 $14,271 $13,003
98 $15,892 $13,860
98 $15,833 $13,614
HIGH YIELD SERIES
AVERAGE ANNUAL TOTAL RETURN*
SINCE
1 YEAR 5 YEAR MAY 2, 1994***
- -1.78% +6.37% +6.16%
</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.
7
<PAGE>
PORTFOLIO ALLOCATION AS OF 6/30/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Equity Securities 57.3%
Foreign - Government Bonds - Investment Grade 21.3%
U.S. Government Securities 8.9%
Cash Equivalents/Receivables 6.0%
Corporate Bonds - Investment Grade 6.5%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/99
<TABLE>
<CAPTION>
Percent of
Bonds Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. United Kingdom Treasury (8.50%) 2007 2.7%
2. Japan JGB #207A (0.90%) 2008 2.5%
3. Bundesrepublik Deutschland (6.50%) 2005 2.0%
4. U.S. Treasury Note (7.875%) 2004 2.0%
5. Bundesrepublik Deutschland (6.50%) 2027 1.7%
<CAPTION>
Stocks
- -------------------------------------------------------------------
<C> <S> <C>
1. Compagnie Financiere Richemont AG 2.1%
2. Philip Morris Co., Inc. 2.1%
3. Albertson's, Inc. 1.9%
4. Nippon Telegraph & Telephone Corp. 1.7%
5. Nestle S.A. 1.7%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES FOR THE YEAR ENDED 6/30/99
STOCK ADDITIONS: STOCK ELIMINATIONS:
Daiichi Pharmaceutical Co., Ltd. Ascom Holding AG
NCR Corp. Fujisawa Pharmaceutical Co.
Pernod Ricard G.I.B. Group S.A.
Pioneer Electronic Corp. Japan Tobacco, Inc.
Rhone - Poulenc S.A. Karstadt AG
Rite Aid Corp. Lion Nathan Ltd.
Sainsbury (J) plc Matsushita Electric Industrial Co. Ltd.
Sears, Roebuck & Co. Nichido Fire & Marine Insurance
U.S. Bancorp Pohjola Group Insurance Corp. 'B'
SIG Schweizerische
Industrie-Gesellschaft Holding
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.
During the six months ended June 1999, the portfolio produced a return of -1.11%
versus 2.04% for the benchmark of 60% MSCI World / 40% JPM Global Bond Index
(GBI). In terms of asset allocation, the portfolio remained close to its
benchmark weighting and this therefore did not make a large contribution to
performance.
The global equity portion significantly underperformed the benchmark, producing
a return of 3.99% versus 8.69% for the MSCI World Index. This underperformance
was confined to the first quarter when the continued narrow leadership of
technology, telecoms and pharamaceutical growth stocks, in which the portfolio
is underweighted, hurt the portfolio. In the second quarter, the portfolio
recovered much of this performance as the mega cap growth stocks, particularly
in the U.S., underperformed the World Index and small and mid caps rallied
strongly.
Rising yields in the global bond markets and the appreciation of the US dollar
resulted in negative absolute returns for the global fixed income portion of the
portfolio. The bond portion marginally underperformed in relative terms
producing a return of -7.61% versus -7.19% for the JPM GBI. The key factors
contributing to this underperformance were our underweighting to the Japanese
market and our overweighting to the euro versus the Japanese yen.
STRATEGY
The structure of the equity portion of the series reflected our bottom up stock
selection style. There was little change in the broad geographical structure of
the equity portion over the period. We remained underweight in the U.S.,
slightly underweight in Japan and overweight both the euro and non-euro regions
in Europe. Our industry weights were also little changed reflecting the ongoing
defensiveness of the portfolio; Consumer Defensive Staples, Telecoms and
Utilities were heavily overweighted, Pharmaceutical & Technology were
underweighted and our allocation to interest rate sensitive sectors was neutral.
The global fixed income portion remained long duration in the dollar bloc and
European markets and short duration in Japan. In terms of currency, the
portfolio remained underweight in the Japanese yen versus both the U.S. dollar
and the European currencies. During the period, we continued to increase
exposure to the credit sector, focusing on U.S. dollar denominated issues. In
June, we added exposure to the peripheral European markets, moving to an
overweight position in Danish bonds and the Danish krona and an overweight
position in the Swedish krona.
OUTLOOK
Global Equity: The small and mid cap rally in the second quarter has given us an
opportunity to modestly reduce our large overweighting to the segment. New ideas
have been concentrated in the large cap $5-$100 billion range although relative
weakness of the mega cap segment so far in 1999 may provide opportunities in the
coming months. Our underweight to mega cap remains our largest disagreement with
the market. The average P/E (IBES one year forecast) for the group is 47. The
average price/cash flow ratio in this group is 27 versus 15 for the MSCI World
Index and 10 for our portfolio.
Global Bonds: We believe the U.S. economy will experience a slowdown later this
year as real incomes fall and stock market gains level off. U.S. bonds may
therefore experience a significant drop in yields even with a modest Fed
tightening and we remain long duration. Within Europe, the sell off in the bond
market in June was at odds with the domestic economy and as such our positive
view on European bonds remains intact. In Japan, given the low level of real
yields and our long-standing concern regarding supply, we remain in underweight
exposure. We also remain underweighted in the yen, believing that the Bank of
Japan remains committed to playing a key supportive role to the struggling
economy.
VALUE OF $10,000 INVESTED JANUARY 3, 1995
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
SALOMON BROS WORLD
GOV'T BOND INDEX + MSCI WORLD INDEX ++
<S> <C> <C> <C>
01/03/95 $10,000 $10,000
95 $11,688 $10,942
96 $11,728 $13,021
97 $12,183 $15,990
98 $12,708 $18,783
99 $13,186 $21,803
GLOBAL ASSET ALLOCATION SERIES
AVERAGE ANNUAL TOTAL RETURN
SINCE
1 YEAR JANUARY 3, 1995**
+5.52% +12.89%
<CAPTION>
GLOBAL ASSET
ALLOCATION SERIES
<S> <C> <C>
01/03/95 $10,000
95 $11,189
96 $12,516
97 $14,368
98 $16,334
99 $17,236
GLOBAL ASSET ALLOCATION SERIES
AVERAGE ANNUAL TOTAL RETURN
1 YEAR
+5.52%
</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.
<PAGE>
PORTFOLIO ALLOCATION AS OF 6/30/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Equity Securities 67.4%
Corporate Bonds - Investment Grade 16.2%
Corporate Bonds - Non-Investment Grade 5.8%
Asset Backed Securities 4.3%
U.S. Treasury Securities 3.1%
U.S. Government Agencies 2.7%
Cash Equivalents/Receivables 0.5%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/99
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. American International Group, Inc. 1.7%
2. Interpublic Group of Companies, Inc. 1.7%
3. General Electric Co. 1.5%
4. J.P. Morgan & Co., Inc. 1.5%
5. NCR Corp. 1.5%
6. Time Warner, Inc. 1.3%
7. AES Corp. 1.3%
8. AT&T Corp. 1.3%
9. Motorola, Inc. 1.2%
<CAPTION>
Bonds
- -------------------------------------------------------------------
<C> <S> <C>
1. U.S. Treasury Strip (5.65%) 2019 1.4%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES
FOR THE PERIOD ENDED 6/30/99
STOCK ADDITIONS: STOCK ELIMINATIONS:
Chancellor Media Corp. Abbott Laboratories
Electronic Data Systems Corp. America Online, Inc.
Equant NV NY Shares Amgen, Inc. (with rights)
J.P. Morgan & Co., Inc. Eli Lilly & Co.
Marsh & McLennan Companies, Fannie Mae
Inc. Mylan Laboratories, Inc.
Motorola, Inc. Philip Morris Companies, Inc.
NCR Corp. Sun Microsystems, Inc.
Potomac Electric Power Co. Unisys Corp.
Tandy Corp. (with rights) Warner-Lambert Co.
Tyco International Ltd.
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 MAY VARY WITH CURRENT MARKET CONDITIONS.
During the first six months of 1999, the Asset Allocation portfolio showed an
increase of 5.49%. This compares to a gain of 12.38% for the S&P 500 and a
decline in the Lehman Aggregate Bond index of 1.37%. A combination of the above
stock and bond indices posted a gain of 6.52% for the same period.
The asset allocation between stocks and bonds did not change during the period
under review. Equities are currently targeted at 65% with fixed income making up
the remaining 35%. At period end equities were slightly above target due to
market appreciation. In the equity area, overweightings can be found in
telecommunications and services, while consumer non-durables and basic materials
are underweighted. Certain telecommunications and technology holdings added to
the period's performance, while energy and financial holdings detracted from
overall performance.
The outlook for capital markets remain sanguine. Equities are benefiting from
the strong economic outlook and the corresponding effect on earnings. Interest
rates, however, have been rising on expectations of possible inflationary
pressures. There is little evidence yet to confirm such fears, and thus we
remain optimistic about the equity and fixed income markets.
On the Fixed Income side, improvement in global economies in the beginning of
the year contributed to the increase in liquidity for spread products
(non-Treasury securities), particularly in the corporate market. Stronger demand
for debt obligations that command a yield premium to U.S. Treasuries, along with
Korea's upgrade by the rating agencies, generated good momentum that caused the
yield premium, or spread, to tighten. As concerns about inflation developed,
Treasury yields rose more than 1% in some maturities reflecting anticipation of
a tighter monetary policy. The 30-Year yields increased 0.88% to 5.97% and
non-goverment yield spread widened as a result. Nevertheless, Corporate bonds
outperformed U.S. Treasuries for the first half of the year.
In the beginning of the year we lengthened the duration of the Fixed Income
portion of the portfolio in relation to the benchmark and increased our exposure
to corporate bonds at the expense of U.S. Treasuries and mortgage backed
securities. Once it became apparent that the Federal Reserve was reevaluating
last fall's easing, we reduced our portfolio duration to that of the benchmark
and reduced our overweighting in corporate bonds to a neutral position.
VALUE OF $10,000 INVESTED JULY 1, 1989
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>
07/01/89 $10,000 $10,000 $10,000
90 $10,785 $11,640 $11,571
91 $11,939 $12,500 $12,325
92 $13,616 $14,183 $14,142
93 $15,220 $16,110 $15,870
94 $15,022 $16,326 $15,832
95 $16,907 $20,576 $19,045
96 $17,755 $25,935 $21,201
97 $19,202 $34,924 $25,214
98 $21,227 $45,474 $30,799
99 $21,894 $55,821 $34,702
ASSET ALLOCATION SERIES
AVERAGE ANNUAL TOTAL RETURN*
1 YEAR 5 YEAR 10 YEAR
+12.67% +16.99% +13.25%
</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.
+ An unmanaged index of government, corporate, and mortgage-backed securities
with an average maturity of approximately nine years.
++ This is an unmanaged index of 500 common stocks.
9
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY
AS OF 6/30/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 39.1%
Financial Services 12.8%
Oil-Crude Petroleum and Gas 11.0%
Telephone Services 9.5%
Banks 5.8%
Business Services 4.3%
Computer-Software 4.0%
Automoblie Manufacturers 3.1%
Insurance 3.1%
Office Equipment and Supplies 2.8%
Electric-Controls and Equipment 2.5%
Cash Equivalents/Receivables 2.0%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/99
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Exxon Corp. 3.6%
2. Citigroup, Inc. 3.0%
3. S&P 500 Depositary Receipt 2.8%
4. AT & T Corp. 2.8%
5. Bank of America Corp. 2.4%
6. Fannie Mae 2.3%
7. Hewlett-Packard Co. 2.0%
8. Bell Atlantic Corp. 1.9%
9. Chase Manhattan Corp. 1.9%
10. Ford Motor Co. 1.9%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES FOR THE PERIOD ENDED 6/30/99
ADDITIONS: ELIMINATIONS:
Baxter International, Inc. (with Air Products and Chemicals, Inc.
rights) American International Group, Inc.
Bell Atlantic Corp. Ameritech Corp.
Conoco, Inc. Class A Bank One Corp.
CSG Systems International, Inc. Compaq Computer Corp.
Freddie Mac Disney (Walt) Co.
Pitney Bowes, Inc. du Pont (E.I.) de Nemours & Co.
S&P 500 Depositary Receipt First Union Corp.
The MONY Group, Inc. Healthsouth Corp.
Time Warner, Inc. McDonald's Corp.
Xerox Corp.
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.
For the six months ended June 30, 1999, the S&P 500 Index advanced 12.38% while
the Fortis Value Series portfolio returned 10.52%. This performance is broadly
comparable to other value funds.
The fund's primary strategy is to invest in companies with accelerating growth,
where we anticipate a company's growth rate to rise over time. To the extent
that we cannot find accelerating earnings, we focus on our secondary criteria,
inexpensively valued growth. We continue to maintain adequate diversification
across market sectors and remain focused on stock selection.
Texas Instruments was one of the fund's better performing stocks during the past
few months. We've also recently added Pepsi Bottling Group and CSG Systems, two
companies we feel have relatively attractive prospects at reasonable valuations.
Looking ahead, we see the economy in the late stages of the current expansion
and we expect to see slower economic growth. We believe that the health care
sector is a logical place for us to invest in this kind of environment because
companies in the business of providing goods and services used in the delivery
of health care tend to enjoy relatively stable demand.
Rising interest rates or slowing global growth could negatively affect the
fund's performance. We continue to monitor the effects of interest rates and the
economy on the portfolio's holdings.
VALUE OF $10,000 INVESTED MAY 1, 1996
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
S&P BARRA
S&P 500*** VALUE SERIES VALUE INDEX****
<S> <C> <C> <C>
05/01/96 $10,000 $10,000 $10,000
96 $10,300 $10,153 $10,102
97 $13,870 $12,654 $13,482
98 $18,060 $15,407 $16,869
99 $22,169 $16,918 $19,657
VALUE SERIES
AVERAGE ANNUAL TOTAL RETURN*
SINCE
1 YEAR MAY 1, 1996**
+9.81% +18.08%
</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
**** A capitalization-weighted index of all the stocks in the Standard & Poor's
500 that have low price-to-book ratios. Going forward the Series will use
the Barra Value Index because it is better suited for the investment
strategy of the Series.
10
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY
AS OF 6/30/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 34.8%
Telephone Services 12.3%
Oil-Crude Petroleum and Gas 8.6%
Natural Gas Transmissions 6.5%
Banks 6.4%
Insurance 5.6%
Food 5.0%
Financial Services 4.7%
Utilities-Electric 4.4%
Drugs 4.2%
Publishing 4.0%
Cash Equivalents/Receivables 3.5%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/99
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Enron Corp. 3.4%
2. SBC Communications, Inc. 2.8%
3. Omnicom Group, Inc. 2.6%
4. American International Group, Inc. 2.6%
5. McGraw-Hill Companies, Inc. 2.5%
6. AT & T Corp. 2.1%
7. Pharmacia and UpJohn, Inc. 2.1%
8. General Electric Co. 2.1%
9. Ameritech Corp. 2.0%
10. J.P. Morgan & Co., Inc. 1.9%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES FOR THE PERIOD ENDED 6/30/99
STOCK ADDITIONS: STOCK ELIMINATIONS:
Aon Corp. Clorox Co.
Baker Hughes, Inc. Duke Energy Corp.
Bank of America Corp. Endesa S.A. ADR
Chase Manhattan Corp. France Telecom S.A. ADR
Interpublic Group of Glaxo Wellcome plc ADR
Companies, Inc. Heinz (H.J.) Co.
J.P. Morgan & Co., Inc. MBNA Corp.
Montana Power Co. Merck & Co., Inc.
Potomac Electric Power Co. New Plan Excel Realty Trust
Schlumberger Ltd. Rite Aid Corp.
Tribune Co., Conv. 2.00%
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 AND POOR'S 500 STOCK
INDEX. THE PORTFOLIO IS WELL DIVERSIFIED WITH EXPOSURE TO MANY SECTORS OF THE
ECONOMY.
For the first six months of 1999, the Growth and Income portfolio posted an
increase of 7.81%. This compares to a greater gain of 12.38% for the S&P 500.
This portfolio is generally less volatile than the S&P and also produces a
current yield above the S&P 500 index.
The Growth and Income portfolio is currently overweighted in the energy and
utility sectors. These sectors offer above average current yields and
underappreciated growth prospects. While these industry sectors did not keep
pace with the overall market's advance, several of our telecommunications
holdings did contribute to the performance gain for the period. McGraw Hill, a
diversified publishing company continues to be a large holding in the fund. We
are attracted to the company's growth prospects and regular dividend increases.
Continued strong economic growth and benign inflation prospects have allowed the
stock market to continue its upward advance during the first half of 1999.
Despite the recent move by the Federal Reserve to increase interest rates, the
outlook for equities appears favorable. As the market currently sells at
historically high valuations, we are paying particular attention to relative
valuations and solid growth investments.
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>
05/02/94 $10,000 $10,000
94 $9,912 $9,942
95 $12,492 $11,448
96 $15,746 $14,430
97 $21,203 $18,403
98 $27,608 $22,587
99 $33,891 $24,991
GROWTH & INCOME SERIES
AVERAGE ANNUAL TOTAL RETURN*
SINCE
1 YEAR 5 YEAR MAY 2, 1994**
+10.64% +20.24% +19.41%
</TABLE>
Annual period ended June 30
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of 500 common stocks
11
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY AS OF 6/30/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Capital Spending 29.0%
Finance 15.8%
Consumer Discretionary 12.1%
Health Care 10.6%
Utilities 10.2%
Consumer Staples 8.2%
Energy & Related 6.6%
Basic Industry 2.9%
Cash
Equivalents/Receivables 2.6%
Other 2.0%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/99
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Microsoft Corp. 4.0%
2. General Electric Co. 3.2%
3. International Business Machines Corp. 2.0%
4. Wal-Mart Stores, Inc. 1.9%
5. Cisco Systems, Inc. 1.8%
6. Lucent Technologies, Inc. 1.8%
7. Intel Corp. 1.7%
8. Exxon Corp. 1.6%
9. AT & T Corp. 1.5%
10. Merck & Co., Inc. 1.5%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES
FOR THE PERIOD ENDED 6/30/99
ADDITIONS: ELIMINATIONS:
Aflac, Inc. Aeroquip-Vickers, Inc.
AmSouth Bancorporation AirTouch Communications, Inc.
Best Buy Company, Inc. Bankers Trust Corp.
CMS Energy Corp. Harnischfeger Industries, Inc.
Delphi Automotive Systems Moore Corp. Ltd.
Corp.
Florida Progress Corp.
Kansas City Southern
Industries, Inc.
Network Appliance, Inc.
SouthTrust Corp.
Wellpoint Health Networks
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.
For the six-month period ended June 30, 1999, the series realized a total return
of 12.04%, while the S&P Index realized a total return of 12.38%.
The Fortis S&P 500 Index Fund is designed to passively replicate the large
capitalization U.S. Equity market by investing in the holdings of the S&P 500
Index. Large capitalization stocks had positive performance in the second
quarter, however, some of the small and mid size companies in the index
underperformed.
Among the best performing groups in the S&P 500 for the second quarter were
stocks of engineering & construction companies, aluminum companies and
miscellaneous metal companies. The Fortis S&P Index Fund's strategy is to hold
all 500 stocks in direct proportion to their weights in the index.
VALUE OF $10,000 INVESTED MAY 1, 1996
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
S&P 500 INDEX*** S&P 500 INDEX SERIES
<S> <C> <C>
05/01/96 $10,000 $10,000
96 $10,300 $10,279
97 $13,870 $13,716
98 $18,060 $17,760
99 $22,169 $21,706
S&P 500 INDEX SERIES
AVERAGE ANNUAL TOTAL RETURN*
SINCE
1 YEAR MAY 1, 1996**
+22.21 +27.75
</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 6/30/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 37.7%
Financial Services 11.3%
Drugs 9.9%
Banks 6.6%
Business Services 6.5%
Computer-Software 6.1%
Telephone Services 5.2%
Electronic - Semiconductor and
Capacitor 4.2%
Media 4.0%
Insurance 3.3%
Cash Equivalent/Receivables 2.6%
Oil-Crude Petroleum and Gas 2.6%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/99
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Citigroup, Inc. 2.9%
2. Tyco International Ltd. 2.8%
3. Microsoft Corp. 2.7%
4. MCI WorldCom, Inc. 2.5%
5. Freddie Mac 2.4%
6. Bristol-Myers Squibb Co. 1.9%
7. Wells Fargo Co. 1.8%
8. AlliedSignal, Inc. 1.6%
9. General Electric Co. 1.5%
10. Pfizer, Inc. (with rights) 1.4%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES FOR THE PERIOD ENDED 6/30/99
ADDITIONS: ELIMINATIONS:
Aetna, Inc. AT&T Corp.
Amgen, Inc. (with rights) Federal-Mogul Corp.
Applied Materials, Inc. First Union Corp.
Boston Scientific Corp. Guidant Corp.
Corning, Inc. McKesson HBOC, Inc.
Marsh & McLennan Companies, Networks Associates, Inc.
Inc. Norfolk Southern Corp.
Mattel, Inc. Rite Aid Corp.
Motorola, Inc. Sara Lee Corp.
Nike, Inc. Class B Sterling Commerce, Inc.
Solectron Corp.
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 MANAGEMENT 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.
MARKET ENVIRONMENT
After more than a year of global economic shocks, investors spent the past six
months focused on domestic strength, but also concerned that improved growth in
foreign economies, coupled with buoyant U.S. growth, could elevate inflation.
Interest rates generally rose to reflect inflation fears, and the Federal
Reserve lifted the federal funds target rate. Yet, while energy prices rose,
labor markets were very tight, and average hourly wages crept up, productivity
improved and actual inflation reports varied. The Fed also noted the favorable
effect the Internet is having on price competition and efficiency.
Investors reacted by bidding up the value of cyclical and technology stocks,
which should fare well in a technology-driven economic upswing. Meanwhile, the
stocks of more defensive steady-growth companies, such as pharmaceuticals, and
interest-rate sensitive stocks, such as financials, generally struggled. In
addition, small-cap and mid-cap stocks outpaced large caps in the second quarter
- -- an unusual occurrence during the past several years.
PERFORMANCE
For the six-month period ended June 30, 1999, the fund produced a return of
9.80%, while the S&P 500 Index had a return of 12.38%. In this environment, the
fund continued to perform reasonably well, very much on pace with the strong
long-term gains it has posted since its inception. However, for the six months
ended June 30, the fund trailed the unmanaged Standard & Poor's 500 Stock Index
by a modest amount.
PORTFOLIO REVIEW
Our investment strategy continues to focus on maintaining positions in core
holdings as long as the fundamentals remain strong and the valuations are
reasonable. Consequently, much of the cash flow the fund has received continues
to be invested opportunistically in existing holdings.
The fund has less exposure to the technology sector than the average growth
fund, and technology holdings performed very well in the first half of 1999.
However, we did have several investments that participated in the tech stock
rally, including Microsoft and America Online. Telecommunications stocks were
also valuable to the fund's performance. MCI WorldCom was a top-10 contributor,
and Nokia continued to take market share from rivals.
Although rising interest rates dampened the gains of many financial stocks, some
of the companies in this area rallied in the second quarter and were quite
strong overall. Citigroup was our top contributor. This company has been a major
holding since the fund's inception in 1996, and we are pleased to have added to
the position consistently, particularly when the stock was out of favor in the
second half of 1998.
As always, there were stocks that disappointed. Management at Network Associates
did not appear to be in control of the problems caused by recent acquisitions
and stiffer competition, so we eliminated the position.
OUTLOOK
On balance, we believe that inflation and interest rates will increase, but at a
manageable pace. Corporate earnings should be strong, and the rotation toward
cyclicals has left some bargains among high-growth stocks. Even so, we continue
to recognize that almost all stocks are expensive by most conventional measures.
Thus, careful stock selection with a focus on valuation and sustainable growth
could become increasingly important. This will be particularly true if the
environment changes to one where consumer confidence and global growth are less
robust.
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>
05/01/96 $10,000 $10,000
96 $10,300 $10,134
97 $13,870 $13,345
98 $18,060 $17,262
99 $22,169 $20,758
BLUE CHIP STOCK SERIES
AVERAGE ANNUAL TOTAL RETURN*
SINCE
1 YEAR MAY 1, 1996**
+20.25% +25.96
</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>
PORTFOLIO DIVERSIFICATION BY COUNTRY AS OF 6/30/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Japan 22.7%
United Kingdom 21.3%
France 13.4%
Germany 9.1%
Other 5.2%
Spain 5.1%
Sweden 5.1%
Netherlands 4.2%
Italy 4.1%
Cash
Equivalents/Receivables 3.8%
Switzerland 3.7%
Australia 2.3%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/99
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Telefonica S.A. (Spain) 2.5%
2. Vivendi (France) 2.4%
3. NTT Mobile Communications Network, Inc. (Japan) 2.3%
4. British Aerospace plc (United Kingdom) 2.1%
5. National Westminster Bank plc (United Kingdom) 1.9%
6. Japan Tobacco, Inc. (Japan) 1.9%
7. Broken Hill Proprietary Co. Ltd. (Australia) 1.9%
8. Banque Nationale de Paris (France) 1.8%
9. Telecom Italia S. p. A. (Italy) 1.8%
10. Orix Corp. (Japan) 1.8%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES
FOR THE PERIOD ENDED 6/30/99
ADDITIONS: ELIMINATIONS:
Astrazeneca plc Astra AB Class B
Canon, Inc. EMI Group plc
Fuji Bank Ltd. Mirror Group plc
Industrial Bank of Japan Ltd. Omron Corp.
Kao Corp. SGS Societe Generale de
Oversea-Chinese Banking Corp. Surveillance Holding S.A.
Ltd. Viag AG
Sankyo Co. Ltd.
Smithkline Beecham plc
TDK Corp.
Veba AG
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.
For the six-month period ended June 30, 1999, the Fortis International Stock
Series had a total return of 5.54% compared to 4.11% for the MSCI EAFE Index.
The last six months have been volatile for equity markets around the world. The
International Stock Series has been effected by record high stock markets as
well as financial crises, unprecedented corporate consolidation, the beginning
phases of the European Monetary Union (EMU), and even the fall and rise of the
Brazilian market. Recently we have seen positive economic hopes and concerns
influence stock price movements and corporate actions to improve financial
productivity amidst heightening global competition.
The International Stock Series did not undergo any significant changes over the
last six months. The investment philosophy remains based on value creation
through bottom-up stock selection. This style enables Lazard to add value by
evaluating companies the same way managements measure their own performance, by
focusing on financial productivity and the long-term sustainability of returns.
Sales over the last six months included Credit Suisse (Switzerland) and Wharf
Holdings (Hong Kong). In addition, due to the deterioration of fundamentals
Lazard sold Fiat (Italy) and Dresdner Bank (Germany). Swisscom (Switzerland) was
also removed from the portfolio when it reached its target valuation.
Lazard's investment team continues to find value opportunities in the
international arena. Several strategic purchases have been made recently
including NTT Mobile Communications (Japan). At the time of purchase NTT Mobile
Communications had the cheapest cellular business globally yet controlled a
premier brand with dominant market share making it an attractive investment.
Endesa, Spain's dominant electric utility, was recently purchased. As well,
Smithkline Beecham (UK), a particularly strong pharmaceutical company in the
vaccines areas, which has a promising drug pipeline was purchased in the fourth
quarter of 1998. Other purchases included Sankyo (Japan), Kao (Japan), Roche
Holdings (Switzerland) and ING (Netherlands).
Despite the recent broadening of the market, and its benefit to diversified
portfolios, the latest rotation of the market cycle should be carefully weighed.
The vast changes that have taken place in the market over the past twenty-five
years have forced the best managers to demand more than absolute valuations for
their clients. Presaged by the volume of M&A activity over the past several
years, during which large companies acquired undervalued smaller companies with
a strong concentration on real financial productivity, the current environment
has become newly competitive. Thus, smaller companies must continue to
streamline their operations to ensure an attractive level of capital efficiency.
Similarly, portfolios with broad diversification should benefit in the new
environment, as long as they take into account the financial productivity of
their value purchases. The rebound is unlikely to mimic the performance of the
spring, but will most likely be stock by stock. As always, a thorough
investigation of the companies themselves will be essential.
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>
01/03/95 $10,000 $10,000
95 $10,276 $10,488
96 $11,676 $12,355
97 $13,213 $14,663
98 $14,057 $17,310
99 $15,170 $17,949
INTERNATIONAL STOCK SERIES
AVERAGE ANNUAL TOTAL RETURN*
SINCE
1 YEAR JANUARY 3, 1995**
+3.69% +13.91%
</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.
14
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY AS OF 6/30/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Capital Spending 33.8%
Consumer Cylical 14.9%
Finance 12.3%
Health Care 8.8%
Utilities 7.5%
Energy & Related 6.7%
Basic Industry 6.2%
Cash
Equivalents/Receivables 4.1%
Consumer Staples 3.7%
Transportation 1.5%
Metals & Mining 0.5%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/99
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Biogen, Inc. 2.9%
2. Linear Technology Corp. 2.0%
3. Altera Corp. 2.0%
4. Maxim Integrated Products, Inc. 1.8%
5. Sabre Group Holdings, Inc. 1.8%
6. TJX Companies, Inc. 1.5%
7. Lexmark International Group Class A 1.4%
8. Hertz Corp. Class A 1.4%
9. Uniphase Corp. 1.3%
10. Ross Stores, Inc. 1.2%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES
FOR THE PERIOD ENDED 6/30/99
ADDITIONS: ELIMINATIONS:
Citrix Systems, Inc. Arrow Electronics, Inc.
Comverse Technology, Inc. Ball Corp.
GPU, Inc. Commonwealth Energy System
Louisiana-Pacific Corp. McKesson HBOC, Inc.
MedImmune, Inc. Montana Power Co.
OGE Energy Corp. Networks Associates, Inc.
RF Micro Devices, Inc. Rohm & Haas Co.
Transocean Offshore, Inc. Scana Corp.
Uniphase Corp. STERIS Corp.
Universal Health Services Tellabs, Inc.
Class B
FORTIS SERIES FUND: MID CAP STOCK SERIES
(SUBADVISED BY DREYFUS)
THIS PORTFOLIO IS DESIGNED FOR INVESTORS WHO WISH TO INVEST IN MID
CAPITALIZATION COMPANIES THAT HAVE EXCELLENT POTENTIAL GROWTH CHARACTERISTICS
BUT ARE REASONABLY PRICED.
For the six-month period ended June 30, 1999, the Fortis Mid Cap Stock Series
had a total return of 4.11% verses 6.88% for the S&P 400 Mid Cap Index and
12.38% for the S&P 500 Index. During the second quarter, MidCap stocks staged a
strong rally outperforming their large capitalization counterparts. The S& P 400
Mid Cap Index returned 14.16% versus 7.05% for the S&P 500 Index during the
months of April, May and June.
During the second quarter, the Fund underperformed its benchmark. During the
month of April, two large benchmark names not held in the portfolio, Qualcomm
and E*Trade Group, were up 60.8% and 98.1%, respectively. Not owning these two
companies had a negative impact on the relative performance. We are encouraged
that as the quarter progressed, performance modestly improved as the portfolio
outperformed its index in June. Some individual names that had a positive impact
during the quarter were, Cytec Industries, Sabre Group Holding, and BMC
Software. Cytec Industries is a chemical company, while Sabre Group provides
traditional and web-based travel services, and BMC Software produces enterprise
wide software products.
INVESTMENT PROCESS
Mellon Equity employs a disciplined investment process in the management of the
Fortis MidCap Fund. The portfolio is constructed in line with our midcap
strategy that seeks to outperform the S&P 400 Index through stock selection
while closely managing the portfolio's risk characteristics versus the
benchmark. Mellon's stock selection involves a dynamic valuation process using
14 broad-based fundamental factors. These include both earnings oriented and
price oriented factors, which are dynamically weighted to capture the
characteristics, the market prefers at the time. Stocks are selected based upon
their exposure to the preferred characteristics. As of June 30, the process has
had a moderate emphasis on price oriented characteristics.
PORTFOLIO CHARACTERISTICS
Portfolio construction seeks to maximize our stock selection capabilities
through carefully neutralizing risks that we believe are not rewarded. The beta
of the portfolio is managed very close to the benchmark in an attempt to
neutralize market risk. The economic sectors are managed in line with the S& P
400 Midcap Index to protect against unintended industry bets. Additional tools
help us determine other factors driving portfolio risk and we manage these
factors versus the benchmark. The portfolio holds 134 stocks, broadly
diversified across ten economic sectors.
VALUE OF $10,000 INVESTED MAY 1, 1998
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
S&P 400
MIDCAP*** MID CAP STOCK SERIES
<S> <C> <C>
05/01/98 $10,000 $10,000
98 $9,610 $9,490
99 $11,261 $10,234
MID CAP STOCK SERIES
AVERAGE ANNUAL TOTAL RETURN*
SINCE
1 YEAR MAY 1, 1998**
+7.84% +2.00%
</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 common stocks that measures the performance of the
mid-range sector of the U.S. stock market
15
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY AS OF 6/30/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 38.4%
Banks 13.2%
Real Estate Investment Trust 11.2%
Oil and Gas Field Services 6.0%
Cash Equivalents/Receivables 5.7%
Medical Supplies 5.4%
Business Services 4.0%
Telecommunication Equipment 3.7%
Electronic Components 3.2%
Telecommunications 3.1%
Oil-Offshore Drilling 3.1%
Chemicals-Specialty 3.0%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/99
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. A. Schulman, Inc. 3.0%
2. Sola International, Inc. 2.9%
3. Jostens, Inc. 2.9%
4. Wolverine World Wide, Inc. 2.9%
5. Summit Properties, Inc. 2.6%
6. Interim Services, Inc. 2.5%
7. IPC Holdings, Inc. 2.4%
8. Peoples Heritage Financial Group 2.3%
9. Watts Industries, Inc. Class A 2.2%
10. Thomas Industries, Inc. 2.2%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES
FOR THE PERIOD ENDED 6/30/99
ADDITIONS: ELIMINATIONS:
A. Schulman, Inc. BJ Services, Co. (Warrants)
Champion Enterprises, Inc. Cognex Corp.
Evergreen Resources, Inc. GBC Bancorp
Fleetwood Enterprises Georgia-Pacific Corp. (Timber
Home Properties of New York, Group)
Inc. Hollinger International, Inc.
Methode Electronics, Inc. Holophane Corp.
Peoples Heritage Financial Just for Feet, Inc.
Group Nautica Enterprises, Inc.
Prentiss Properties Trust Playboy Enterprises Class B
Stewart and Stevenson St. Paul Bancorp, Inc.
Services, Inc.
Watts Industries, Inc.
Class A
FORTIS SERIES FUND: SMALL CAP VALUE SERIES
(SUBADVISED BY BERGER)
THIS PORTFOLIO IS DESIGNED FOR AGRESSIVE INVESTORS WHO WANT TO INVEST IN SMALL
COMPANY STOCKS THAT THE PORTFOLIO MANAGERS BELIEVE ARE SIGNIFICANTLY
"UNDERVALUED".
For the first six-months of 1999, the Series with a return of 16.30%
significantly outperformed its index, the Russell 2000 return of 9.25%, and the
S&P 500 return of 12.38%. The strong performance comes after approximately six
years of relative under-performance in the small cap value sector. We hope that
the six month performance is indicative of the market gravitating towards those
sectors that provide the best economic values with much less relative risk.
All sectors of the fund had positive returns with the standouts being energy and
basic materials. Both of these sectors had been laggards due to short- term
concerns about profits. Chieftain International (1.3% of assets), Mitchell
Energy (2.0% of assets), and Stewart & Stevenson (1.6% of assets), all had
gains, but still sell at over 50% discounts to the general market. Our
relatively large position in the financial sector, which includes REITs, lagged
the overall portfolio due to the rise in interest rates. We feel, however, that
this sector offers solid potential returns with, more importantly, little
relative downside risk.
Going forward, while we are encouraged by the recognition of the superior
relative values in small stocks, we continue to be concerned with the excessive
valuations being put on the current large cap market leaders. A correction of
the disparity between market leaders and small stocks could lead to a negative
environment in the short term. Consequently, we continue to believe that the
best risk/reward opportunities are in the small-cap market.
VALUE OF $10,000 INVESTED MAY 1, 1998
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
RUSSELL 2000 *** SMALL CAP VALUE SERIES
<S> <C> <C>
05/01/98 $10,000 $10,000
98 $9,491 $9,640
99 9,629 10,982
SMALL CAP VALUE SERIES
AVERAGE ANNUAL TOTAL RETURN*
SINCE
1 YEAR MAY 1, 1998**
+14.03% +8.45%
</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 common stocks of the smallest 2000 companies in the
Russell 3000 Index, which represents approximately 11% of the Russell 3000
Index.
16
<PAGE>
PORTFOLIO DIVERSIFICATION BY COUNTRY AS OF 6/30/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
United Staes 43.2%
Japan 14.4%
Other 11.7%
France 5.9%
Finland 4.3%
United Kingdom 4.1%
Netherlands 3.4%
Receivables/Cash
Equivalents 3.2%
Italy 2.7%
Spain 2.6%
Germany 2.4%
Israel 2.1%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/99
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Tellabs, Inc. (US) 3.5%
2. Nokia Oyj (Finland) 3.4%
3. Cisco Systems, Inc. (US) 2.6%
4. Outback Steakhouse, Inc. (US) 2.5%
5. Bed Bath & Beyond, Inc. (US) 2.4%
6. PE Corp - PE Biosystems Group (US) 2.1%
7. Cheesecake Factory (The), Inc. (US) 2.1%
8. Orange plc (United Kingdom) 2.1%
9. Telefonica S.A. ADR (Spain) 1.9%
10. Synopsys, Inc. (US) 1.9%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES
FOR THE PERIOD ENDED 6/30/99
ADDITIONS:. ELIMINATIONS:
Aiful Corp. 3Com Corp.
Alcoa, Inc. Barco N.V.
Korea Electric Blyth Industries, Inc.
Power Corp. ADR Data Processing Resources
MCI WorldCom, Inc. Corp.
Motorola, Inc. Glaxo Wellcome plc ADR
Nintendo Co. Ltd. Networks Associates, Inc.
Orix Corp. Novartis AG
Reader's Digest Phoenix AG
Association, Inc. Class A Service Corp. International
Tandy Corp. (with rights) Total Renal Care Holdings,
Tidewater, Inc. Inc.
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.
We are pleased to report that during the six-month period ended June 30, 1999,
the Global Growth Series Portfolio had a total return of 10.35%. For the same
period, the Morgan Stanley Capital International World Index returned 8.69%. The
performance of the fund has been impacted by a low exposure to larger company
investments in the U.S. an increase in our weightings in Japan, and an
overweight position in Europe.
The out-performance by large companies has been an ongoing trend for the past
several years. The main reason for this out-performance was investors fear that
the Asian economic crisis would spread to other regions of the world. The Global
Growth Series has historically focused on mid-sized growth oriented companies,
which have underachieved in recent years. Since April of 1999 however, investor
sentiment has shifted primarily due to an improved global economic outlook.
Japan and several southeast Asian nations appear to be recovering from prolonged
recessions. This should help boost investor sentiment toward growth oriented
global companies. The key to the sustainability of this broadening stock market
participation will likely be the outlook for the world economy, and the outlook
for inflation, and interest rates.
The Global Growth Series can invest in any country including the United States.
Our strategy is to invest in the best positioned companies with superior growth
prospects, regardless of their domicile. At the end of June 1999, the
portfolio's geographic mix broke down as follows: the United States 43%, Europe
27%, Japan 14%, the United Kingdom 4.1%, and Emerging Regions 6.5%. The
corresponding weightings for the MSCI World Index were: the United States 52%,
Europe 22%, Japan 10.5%, and the United Kingdom 10.3%. Growing industries such
as telecommunications, technology related and energy make up the bulk of the
portfolio.
The longer term outlook for global investing remains favorable. Although foreign
stock markets have lagged in performance in recent years, there remain
significant opportunities for well diversified global investors. We will
continue to search for attractive growth companies in all major world markets.
Investors with a reasonable time horizon should be positioned to benefit from
the expected global economic recovery in Japan, Asia, and Europe.
VALUE OF $10,000 INVESTED MAY 1, 1992
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
MSCI WORLD INDEX*** GLOBAL GROWTH SERIES
<S> <C> <C>
05/01/92 $10,000 $10,000
92 $10,053 $9,967
93 $11,805 $11,996
94 $13,076 $12,002
95 $14,543 $14,808
96 $17,305 $19,668
97 $21,252 $21,027
98 $24,964 $24,290
99 $28,977 $25,879
GLOBAL GROWTH SERIES
AVERAGE ANNUAL TOTAL RETURN*
SINCE
1 YEAR 5 YEAR MAY 1, 1992**
+6.54% +16.61% +14.19%
</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.
17
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY AS OF 6/30/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 31.5%
Financial Services 14.9%
Drugs 9.9%
Computer Communication Equipment 6.8%
Retail-Specialty 6.0%
Business Services 5.5%
Cash Equivalents/Receivables 5.3%
Telecommunications Equipment 5.1%
Telephone Services 4.6%
Banks 3.7%
Office Equipment and Supplies 3.4%
Electronic-Semiconductor and
Capacitor 3.3%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/99
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Nokia Oyj Corp. ADR Class A 5.1%
2. Tyco International Ltd. 5.0%
3. Dell Computer Corp. 4.0%
4. Morgan Stanley Dean Witter & Co. 3.4%
5. Home Depot, Inc. 3.4%
6. Schering-Plough Corp. 3.4%
7. Intel Corp. 3.3%
8. Associates First Capital Corp. Class A 3.1%
9. MCI Worldcom, Inc. 3.0%
10. Cisco Systems, Inc. 2.9%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES
FOR THE PERIOD ENDED 6/30/99
ADDITIONS: ELIMINATIONS:
Bank One Corp. Dayton Hudson Corp.
Clear Channel Communications, Disney (Walt) Co.
Inc. Ford Motor Co.
Costco Companies, Inc. Merck & Co., Inc.
Gap, Inc. Northwest Airlines Corp.
General Motors Corp. Philip Morris Companies, Inc.
International Business Progressive Corp. (The)
Machines Corp. Rite Aid Corp.
MediaOne Group, Inc. U.S. Bancorp
Merrill Lynch & Co., Inc. Washington Mutual, Inc.
Safeway, Inc.
Time Warner, Inc.
FORTIS SERIES: LARGE CAP GROWTH SERIES
(SUBADVISED BY ALLIANCE)
THIS PORTFOLIO IS DESIGNED FOR INVESTORS WHO WANT TO INVEST IN LARGE
CAPITALIZATION, FAST GROWING COMPANIES.
We are pleased to report that for the six-month period ended June 30, 1999, the
Large Cap Growth Series returned 14.42% compared to the S&P 500 Index return of
12.38%.
While our style of high quality growth stock investing was out of favor in the
second quarter of 1999, not only did we maintain our lead to the growth
benchmarks, we also added to our favorite names at very attractive prices.
Outperforming stocks included Tyco International, the conglomerate, IBM, MBNA
and Nokia. Under-performing stocks included McKesson, a fundamentally weaker
company than before, and Pfizer, still a strong pharmaceutical giant.
There have been two themes to the U.S. equity market over the past nine months.
Throughout November and December 1998 and continuing through the First Quarter
of 1999, growth stocks continued to perform extremely well. Beginning in April
and May, however, the market began to broaden out and embrace more "cyclical"
industries such as basic commodities, chemicals, and papers. Growth stocks, as a
result, came under price pressure as many investors believed that world economic
growth would accelerate and translate into strong earnings gains for the
economically sensitive companies. Accordingly, despite no change in their
underlying fundamentals, the share prices of many blue-chip growth companies
declined in the April-May timeframe by as much as 25% or more.
Experience dictates that "cyclical" stocks do best when they can actually
demonstrate rapid growth in earnings based on overall world economic expansion.
In our judgment, evidence of such resurgent world economic growth is mixed and
inconclusive. There are signs of lingering softness in Europe; and Asia, while
improving, does not exhibit robust strength. This appraisal conflicts, however,
with both the expectant price advance for many so-called "cyclical" stocks and
with the fears of significantly higher interest rates in the United States.
Our bias remains that growth domestically will moderate somewhat in the second
half of 1999, favoring large, blue chip growth companies that can be trusted to
deliver on consistent earnings progressions. In our judgement this would include
pharmaceuticals, high-growth retailers, media and cable companies and technology
companies--many of which are at more attractive price levels than at any
previous time this year. Many of the top companies in your series' portfolio
exhibit expected growth rates of 20% or more per year. The visibility of this
growth is high and managements of these companies continue to express confidence
in these levels of on-going growth expectations. The U.S. consumer also remains
optimistic and confident. Inflation remains controlled, and Federal Reserve
action will likely be viewed by both the bond and equity markets as responsible.
The position of the United States vis-a-vis the rest of the world has never been
stronger and that holds equally for the country's blue-chip premier growth
companies.
We thank you for your support and maintain our goal of adding value for you, our
clients, through strong stock selection and intelligent portfolio construction.
VALUE OF $10,000 INVESTED MAY 1, 1998
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
S&P 500 *** LARGE CAP GROWTH SERIES
<S> <C> <C>
05/01/98 $10,000 $10,000
98 $10,227 $10,439
99 $12,555 $13,572
LARGE CAP GROWTH SERIES
AVERAGE ANNUAL TOTAL RETURN *
SINCE
1 YEAR MAY 1, 1998**
+30.01% +29.91%
</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
18
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY
AS OF 6/30/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 41.8%
Computer-Software 14.2%
Electronic-Semiconductor and
Capacitor 5.4%
Financial Services 5.4%
Medical Supplies 5.1%
Business Services 4.8%
Advertising-Public Relations 4.7%
Broadcasting 4.2%
Retail-Specialty 4.1%
Telecommunication Equipment 3.7%
Printing 3.6%
Cash Equivalents/Receivables 3.0%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/99
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Waters Corp. 2.2%
2. Home Depot, Inc. 2.0%
3. Univision Communications, Inc. 2.0%
4. Comverce Technology Corp. 1.8%
5. Young & Rubicam, Inc. 1.8%
6. Ambac Financial Group, Inc. 1.7%
7. National Instruments Corp. 1.7%
8. Capital One Financial Corp. 1.7%
9. MedImmune, Inc. 1.6%
10. Siebel Systems, Inc. 1.6%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES
FOR THE PERIOD ENDED 6/30/99
ADDITIONS: ELIMINATIONS:
Adobe Systems, Inc. Century Telephone Enterprises, Inc.
Electronics for Imaging, Inc. Cisco Systems, Inc.
Georgia-Pacific Group Dollar Tree Stores, Inc.
ISS Group, Inc. Exodus Communications, Inc.
LSI Logic Corp. Forest Laboratories, Inc.
Montana Power Co. Inktomi Corp.
Siebel Systems, Inc. Sofamor Danek Group, Inc.
Valassis Communications, Inc. Solectron Corp.
Vishay Intertechnology, Inc. Total Renal Care Holdings, Inc.
Xilinx, Inc. Watson Pharmaceuticals, Inc.
FORTIS SERIES FUND: GROWTH STOCK SERIES
THIS PORTFOLIO IS DESIGNED FOR INVESTORS WHO SEEK TO REWARD POTENTIAL ENTIRELY
THROUGH U.S. EXCHANGE LISTED STOCKS. IT INVESTS IN MEDIUM-SIZED GROWTH COMPANIES
THAT MOVED BEYOND THE VENTURE STAGE.
For the period ending June 30, 1999, the Fortis Growth Stock Series had a total
return of 5.21% versus the S&P 400 Mid Cap Index which posted a 6.88% return.
This index is the most relevant comparison for the Growth Stock Series, as the
Series' primary investment focus is mid capitalization stocks, typically those
with a market capitalization between $1 billion and $6 billion.
During the period under review the Series under-performance was attributable to
its underweight position in cyclical and energy stocks which out-performed
during the second quarter. In the second quarter the Morgan Stanley Cyclical
Index posted a 19.6% and the Philadelphia Oil Service Index gained 16.25%. In
addition to energy and cyclical stocks, the Fund continues to underweight
utilities and financial stocks. The Series currently has a slightly overweight
position in technology, where we continue to find new and innovative companies
especially in telecommunications. Stocks such as Comverse Technology and Xilinx
are two stocks we currently favor. The strong domestic economy has provided low
unemployment and rising personal income which we continue to believe bodes well
for specialized retail chains. We feel stocks such as Best Buy and Kohl's should
benefit from the strong consumer spending trends.
Going forward, we expect steady domestic economic growth, moderate inflation,
and stable interest rates to provide a positive backdrop for U.S. stock prices.
U.S. corporate profits should also see an added benefit from an economic rebound
in Asia. On a relative valuation basis, we believe that mid cap growth stocks
are currently more attractive than their larger cap brethren and we expect the
valuation gap that has developed over the past three years to narrow.
VALUE OF $10,000 INVESTED JULY 1, 1989
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
S&P 500** S&P 400*** GROWTH STOCK SERIES
<S> <C> <C> <C>
07/01/89 $10,000 $10,000 $10,000
90 $11,640 $11,186 $11,989
91 $12,500 $12,284 $12,889
92 $14,183 $14,250 $14,930
93 $16,110 $17,291 $17,733
94 $16,326 $17,268 $16,647
95 $20,576 $21,129 $21,617
96 $25,935 $25,681 $25,789
97 $34,924 $31,678 $28,900
98 $45,474 $40,269 $35,149
99 $55,821 $47,184 $38,001
GROWTH STOCK SERIES
AVERAGE ANNUAL TOTAL RETURN*
1 YEAR 5 YEAR 10 YEAR
+8.11% +17.95% +14.28%
</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.
** An unmanaged index of 500 common stocks.
*** A capitalization-weighted index that measures the performance of the
mid-range sector of the U. S. stock market. Going forward, the Series will
use the S&P 400 Midcap Index because it is better suited for the investment
strategy of the Series.
19
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY
AS OF 6/30/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 34.8%
Computer-Software 20.0%
Electronic Components 9.5%
Business Services 7.8%
Telecommunication Equipment 6.2%
Drugs 5.3%
Electronic-Semiconductor and
Capacitor 4.0%
Retail Miscellaneous 3.8%
Health Care Services 3.5%
Retaill-Clothing 2.4%
Construction 2.1%
Cash Equivalents/Receivables 0.6%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/99
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Business Objects S.A. ADR 1.9%
2. RF Micro Devices, Inc. 1.9%
3. TLC The Laser Center, Inc. 1.8%
4. Optical Coating Laboratory, Inc. 1.8%
5. Emulex Corp. 1.7%
6. Advance Paradigm, Inc. 1.6%
7. ISS Group, Inc. 1.4%
8. Applied Micro Circuits Corp. 1.4%
9. MiniMed, Inc. 1.3%
10. JAKKS Pacific, Inc. 1.3%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES
FOR THE PERIOD ENDED 6/30/99
ADDITIONS: ELIMINATIONS:
Advance Paradigm, Inc. Incyte Pharmaceuticals, Inc.
Dycom Industries, Inc. Jabil Circuit, Inc.
Emulex Corp. Kellstrom Industries, Inc.
Galileo Technology Ltd. Level One Communications, Inc.
JAKKS Pacific, Inc. Medicis Pharmaceutical Corp.
MiniMed, Inc. Class A
Optical Coating Laboratory, Metzler Group, Inc.
Inc. Network Appliance, Inc.
Proxim, Inc. New Era of Networks, Inc.
SanDisk Corp. (with rights)
TriQuint Semiconductor, Inc. Pediatrix Medical Group, Inc.
Sylvan Learning Systems, Inc.
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.
During the first half of 1999, the series significantly outperformed both the
Russell 2000 and the Russell 2000 growth indices -- the widely used benchmark
for small capitalization portfolios. The fund posted a 19.80% return during the
period versus a 9.25% return for the Russell 2000 and a 12.82% return for the
Russell 2000 growth index. The Fund was ranked in the top 13 percentile for the
first half of 1999 in its Lipper category.
The performance of small cap was mixed during the first half of 1999. The first
quarter saw the continuation of the out-performance of large cap stocks with the
Russell 1000 posting a 4.12% return versus the Russell 2000 which had a -5.42%
return. The trend changed during the second quarter where for the first time in
seven quarters the Russell 2000, which posted a 15.5% return, out paced it's
larger cap brethren the Russell 1000 which returned 7.12%. Even with the recent
out-performance small cap stocks have not fully closed the valuation gap that
has developed over the past three years.
The out-performance of the series vs its benchmark during the period is
attributable to superior stock selection, especially in technology. Within
technology, we continue to favor the telecommunications stocks whose products
and services are critical to the transmission of voice and data over the
Internet. Additionally, we continue to favor wireless component companies such
as RF Micro Devices and ANADIGICS, which should benefit from the increased use
of wireless communication devices.
Going forward, we expect small cap stocks to perform well, given the current
attractive relative valuations. We continue to expect moderate economic growth
and stable interest rates to support solid earnings growth for small cap stocks.
We are confident that the market will continue to recognize the relative
superior earnings growth of small cap stocks by rewarding them with higher
valuations.
VALUE OF $10,000 INVESTED MAY 2, 1994
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH
S&P 500*** SERIES RUSSELL 2000****
<S> <C> <C> <C>
05/02/94 $10,000 $10,000 $10,000
94 $9,912 $9,133 $9,726
95 $12,492 $11,352 $11,586
96 $15,746 $14,722 $14,356
97 $21,203 $12,960 $16,701
98 $27,608 $15,815 $19,504
99 $33,891 $20,197 $19,788
AGGRESSIVE GROWTH SERIES
AVERAGE ANNUAL TOTAL RETURN*
SINCE
1 YEAR 5 YEAR MAY 2, 1994**
+27.71% +17.20% +14.58%
</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
**** An unmanaged index of common stocks of the smallest 2000 companies in
the Russell 3000 Index, which represents approximately 11% of the
Russell 3000 Index. Going forward, the Series will use the Russell
2000 Index because it is better suited for the investment strategy of
the Series.
20
<PAGE>
FORTIS SERIES FUND, INC.
MONEY MARKET SERIES
Schedule of Investments
June 30, 1999 (Unaudited)
SHORT-TERM INVESTMENTS - 101.07%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
Principal Maturity & Poor's
Amount Yield Date Rating Value (a)
----------- ------ --------- --------------- ------------
<C> <S> <C> <C> <C> <C>
BANKS-15.82%
$3,800,000 Deutsche Bank AG............................. 4.99% 08/02/99 A1+ $ 3,783,001
3,000,000 First Union National Bank.................... 4.94% 05/17/00 A1 3,020,172
3,202,270 U.S. Bank N.A. Money Market Variable Rate
Time Deposit............................... 4.80% 07/01/99 A1+ 3,202,270
3,800,000 Wells Fargo Co............................... 5.05% 07/27/99 A1 3,785,892
------------
13,791,335
------------
BROKERAGE AND INVESTMENT-8.80%
3,800,000 Merrill Lynch & Co., Inc..................... 4.93% 08/05/99 A1+ 3,781,760
3,900,000 Morgan Stanley Dean Witter Corp.............. 5.03% 07/19/99 A1 3,889,832
------------
7,671,592
------------
CAPTIVE AUTO FINANCE-16.73%
3,800,000 DaimlerChrysler Corp......................... 4.95% 08/11/99 A1 3,778,676
3,800,000 Ford Motor Credit Co......................... 5.00% 07/20/99 A1 3,789,656
3,800,000 General Motors Acceptance Corp............... 4.94% 07/29/99 A1 3,785,276
3,229,000 Toyota Motor Credit Corp..................... 4.91% 07/02/99 A1+ 3,228,134
------------
14,581,742
------------
CAPTIVE EQUIPMENT FINANCE-4.24%
3,700,000 IBM Credit Corp.............................. 4.93% 07/09/99 A1 3,695,532
------------
CAPTIVE OIL FINANCE-4.35%
3,800,000 Chevron USA, Inc............................. 4.92% 07/13/99 A1+ 3,793,372
------------
CONSUMER FINANCE-17.72%
3,700,000 American Express Credit Corp................. 4.91% 07/16/99 A1 3,692,107
3,800,000 American General Finance Corp................ 5.14% 08/03/99 A1 3,781,912
3,800,000 Commercial Credit Corp....................... 4.95% 07/06/99 A1 3,796,922
4,200,000 Household Finance Corp....................... 5.23% 08/12/99 A1 4,174,264
------------
15,445,205
------------
DIVERSIFIED FINANCE-20.57%
2,916,000 Associates Corp. Master Variable Rate Note... 4.71% 07/01/99 A1+ 2,916,000
3,800,000 CIT Group, Inc............................... 4.92% 08/23/99 A1 3,772,754
3,800,000 CSW Credit, Inc.............................. 5.07% 07/21/99 A1+ 3,788,961
3,800,000 General Electric Capital Corp................ 4.99% 08/18/99 A1+ 3,774,863
3,700,000 Prudential Funding Corp...................... 5.12% 08/26/99 A1 3,670,708
------------
17,923,286
------------
INDUSTRIAL-4.03%
3,600,000 Xerox Credit Corp............................ 5.05% 01/07/00 A1 3,508,320
------------
OIL-REFINING-4.35%
3,800,000 Texaco, Inc.................................. 4.89% 07/22/99 A1 3,788,923
------------
UTILITIES-ELECTRIC-4.46%
3,900,000 Duke Energy Corp............................. 4.86% 07/23/99 A1 3,888,165
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$88,087,472)(b)............................ $88,087,472
------------
------------
</TABLE>
(a) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(b) Also represents cost for federal income tax purposes.
21
<PAGE>
FORTIS SERIES FUND, INC.
U.S. GOVERNMENT SECURITIES SERIES
Schedule of Investments
June 30, 1999 (Unaudited)
U.S. GOVERNMENT SECURITIES-95.12%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Cost (a) Value (b)
------------ ------------- -------------
<C> <S> <C> <C>
FEDERAL HOME LOAN MORTGAGE CORP. - 2.99%
MORTGAGE BACKED SECURITIES:
$ 2,465,915 5.50% 2001................................... $ 2,450,899 $ 2,364,098
11,989 11.25% 2015.................................. 13,041 13,107
------------- -------------
2,463,940 2,377,205
------------- -------------
NOTES:
2,000,000 6.75% Global 2006............................ 2,052,217 2,047,798
------------- -------------
TOTAL FEDERAL HOME LOAN MORTGAGE CORP........ 4,516,157 4,425,003
------------- -------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -
40.11%
MORTGAGE BACKED SECURITIES:
4,566,448 5.50% 2014................................... 4,504,877 4,317,741
1,292,969 5.835% 2008.................................. 1,307,603 1,220,652
16,234,451 6.00% 2013-2029 (e).......................... 16,038,609 15,449,641
996,534 6.01% 2009................................... 1,016,010 948,264
1,926,403 6.20% 2006................................... 1,932,453 1,893,030
786,199 6.36% 2008................................... 785,078 770,587
1,822,019 6.48% 2008................................... 1,838,307 1,799,080
10,924,185 6.50% 2013-2029.............................. 10,853,827 10,606,470
739,100 6.54% 2007................................... 751,366 732,380
1,301,293 6.63% Global 2005............................ 1,334,800 1,305,646
5,901,650 7.00% 2003-2028.............................. 5,946,975 5,856,508
1,907,746 7.50% 2023................................... 1,963,190 1,929,378
127,933 8.50% 2017................................... 130,745 133,587
88,146 9.00% 2020-2021.............................. 87,971 93,383
561,079 9.75% 2020................................... 605,264 603,415
------------- -------------
49,097,075 47,659,762
------------- -------------
NOTES:
2,000,000 6.18% 2001................................... 2,015,463 2,010,622
2,340,000 6.55% 2007................................... 2,321,612 2,347,254
3,935,000 6.58% 2007................................... 3,926,918 3,943,775
1,250,000 6.80% 2003................................... 1,295,824 1,279,022
2,020,000 7.15% 2007................................... 2,175,517 2,091,041
------------- -------------
11,735,334 11,671,714
------------- -------------
TOTAL FEDERAL NATIONAL MORTGAGE
ASSOCIATION................................ 60,832,409 59,331,476
------------- -------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -
5.80%
MORTGAGE BACKED SECURITIES:
5,623,059 7.50% 2027................................... 5,660,128 5,685,818
1,205,545 9.00% 2020................................... 1,262,808 1,279,492
1,506,398 9.50% 2018-2021.............................. 1,561,951 1,610,623
------------- -------------
TOTAL GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION................................ 8,484,887 8,575,933
------------- -------------
OTHER DIRECT FEDERAL OBLIGATIONS - 23.80%
FEDERAL FARM CREDIT BANK:
5,000,000 5.70% 2001................................... 5,013,160 4,989,580
------------- -------------
FEDERAL HOME LOAN BANK:
3,350,000 5.60% 2001................................... 3,341,988 3,338,372
1,075,000 5.75% 2001................................... 1,074,261 1,073,525
2,500,000 5.925% 2000.................................. 2,501,786 2,506,055
7,895,000 7.31% 2004................................... 7,911,552 8,245,680
------------- -------------
14,829,587 15,163,632
------------- -------------
</TABLE>
22
<PAGE>
U.S. GOVERNMENT SECURITIES-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Cost (a) Value (b)
------------ ------------- -------------
<C> <S> <C> <C>
TENNESSEE VALLEY AUTHORITY:
$15,000,000 6.375% Global 2005........................... $ 14,507,879 $ 15,044,040
------------- -------------
TOTAL OTHER DIRECT FEDERAL OBLIGATIONS....... 34,350,626 35,197,252
------------- -------------
OTHER GOVERNMENT AGENCIES - 2.34%
RESOLUTION FUNDING CORPORATION:
9,000,000 7.96% 2014 Zero Coupon Strip (d)............. 2,843,035 3,466,251
------------- -------------
U.S. TREASURY SECURITIES - 20.08%
BONDS:
6,735,000 6.20% 2019 Zero Coupon Strip (d)............. 2,031,819 1,956,241
4,590,000 8.125% 2021.................................. 5,944,957 5,573,981
1,200,000 12.00% 2013.................................. 1,747,608 1,684,126
------------- -------------
9,724,384 9,214,348
------------- -------------
NOTES:
1,561,545 3.375% 2007.................................. 1,501,848 1,497,620
1,600,000 4.625% 2000.................................. 1,587,032 1,582,000
2,950,000 5.50% 2003................................... 3,032,205 2,926,031
14,325,000 6.125% 2001-2007............................. 14,404,644 14,485,739
------------- -------------
20,525,729 20,491,390
------------- -------------
TOTAL U.S. TREASURY SECURITIES............... 30,250,113 29,705,738
------------- -------------
TOTAL U.S. GOVERNMENT SECURITIES............. $ 141,277,227 $ 140,701,653
------------- -------------
------------- -------------
</TABLE>
SHORT-TERM INVESTMENTS-5.11%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (b)
----------- -------------
<C> <S> <C>
BANKS - 3.01%
$4,460,754 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 4.91%........ $ 4,460,754
-------------
DIVERSIFIED FINANCE - 2.10%
3,106,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.01%...................... 3,106,000
-------------
TOTAL SHORT-TERM INVESTMENTS................. 7,566,754
-------------
-------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$148,843,981) (a).......................... $ 148,268,407
-------------
-------------
</TABLE>
(a) At June 30, 1999, the cost of securities for federal income tax purposes
was $149,087,585 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation.......................................... $1,533,466
Unrealized depreciation.......................................... (2,352,644)
- -----------------------------------------------------------------------------
Net unrealized depreciation...................................... $ (819,178)
- -----------------------------------------------------------------------------
</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, 1999,
was $1,437,891.
23
<PAGE>
FORTIS SERIES FUND, INC.
DIVERSIFIED INCOME SERIES
Schedule of Investments
June 30, 1999 (Unaudited)
ASSET BACKED SECURITIES-13.35%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
------------ ------------- ------------- -------------
<C> <S> <C> <C> <C>
COMMERCIAL LOANS - 8.26%
$ 390,092 DLJ Mortgage Acceptance Corp., 7.28% Ser
1996-CF1 Class A-1A 3-13-2028 (e).......... AAA $ 392,936 $ 395,487
558,619 GS Mortgage Securities Corp. II Protective
Life, 7.02% Ser 1996-PL Class A1
2-15-2027.................................. Aaa* 558,584 557,820
564,255 J.P. Morgan Commercial Mortgage Finance
Corp., 6.47% Ser 1996-C2 Class A
11-25-2027................................. AAA 568,168 558,229
697,918 Merrill Lynch Mortgage Investors, Inc., 6.76%
Variable Rate Ser 1995-C3 Class A1
12-26-2025................................. AAA 680,113 701,359
1,400,000 Merrill Lynch Mortgage Investors, Inc., 7.42%
Ser 1996-C1 Class B 4-25-2028.............. AA 1,365,710 1,425,158
1,000,000 Midland Realty Acceptance Corp., 7.7398%
Variable Rate Ser 1996-C1 Class B
8-25-2028.................................. AA 1,009,774 1,061,780
1,650,000 Mortgage Capital Funding, Inc., 7.90% Ser
1996-MC1 Class B 2-15-2006................. AA+ 1,663,015 1,746,558
2,000,000 Nationslink Funding Corp., 7.52% Ser 1996-1
Class A2 7-20-2005......................... AAA 2,001,841 2,039,480
545,756 Nationslink Funding Corp., 7.53% Ser 1996-1
Class A1 9-20-2002......................... AAA 548,833 554,553
------------- -------------
8,788,974 9,040,424
------------- -------------
HOUSING - 1.14%
750,000 Money Store Home Improvement Trust, 7.41% Ser
1997-1 Class M1 5-15-2017.................. AA 752,902 756,862
500,000 Money Store Residential Trust, 7.085% Ser
1997-I Class M1 7-15-2016.................. AA 499,926 492,375
------------- -------------
1,252,828 1,249,237
------------- -------------
MANUFACTURED HOMES - 1.36%
1,522,149 Green Tree Financial Corp., 7.20% Ser 1993-4
Class B1 1-15-2019......................... Baa3* 1,511,792 1,488,555
------------- -------------
MISCELLANEOUS - 0.08%
82,215 Fifth Third Auto Grantor Trust, 6.70% Ser
1996-B Class B 3-15-2002................... A 82,184 82,600
------------- -------------
MULTI-FAMILY LOANS - 1.76%
1,500,000 DLJ Mortgage Acceptance Corp., 8.80%
Multifamily Mtg Pass Thru Certificate Ser
1993-12 Class B1 9-18-2003................. NR 1,473,750 1,513,560
507,198 Fund America Structured Transactions, L.P.,
Collateralized Note, 8.76% Ser 1996-1 Class
A Principal Only 1-1-2033 (f) (h).......... Baa3* 382,598 410,196
------------- -------------
1,856,348 1,923,756
------------- -------------
WHOLE LOAN RESIDENTIAL - 0.75%
818,267 Mid-State Trust, 7.54% Ser 6 Class A3
7-1-2035................................... AA 817,761 826,221
------------- -------------
TOTAL ASSET BACKED SECURITIES................ $ 14,309,887 $ 14,610,793
------------- -------------
------------- -------------
</TABLE>
CORPORATE BONDS-INVESTMENT GRADE - 48.22%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
------------ ------------- ------------- -------------
<C> <S> <C> <C> <C>
AEROSPACE AND EQUIPMENT - 1.34%
$ 500,000 Lockheed Martin Corp., 7.65% Deb 5-1-2016.... BBB+ $ 502,737 $ 496,319
1,000,000 Raytheon Co., 5.70% Note 11-1-2003........... BBB 1,003,882 969,948
------------- -------------
1,506,619 1,466,267
------------- -------------
AIRLINES - 2.13%
1,300,000 Delta Air Lines, 10.50% Pass Thru Certificate
4-30-2016.................................. BBB 1,571,461 1,600,222
750,000 Delta Air Lines, 6.65% Medium Term Note
3-15-2004.................................. BBB- 749,462 730,567
------------- -------------
2,320,923 2,330,789
------------- -------------
AUTOMOBILE AND MOTOR VEHICLE PARTS - 0.91%
1,000,000 TRW, Inc., 6.45% 6-15-2001 (f)............... BBB 999,911 1,001,078
------------- -------------
AUTOMOBILE MANUFACTURERS - 0.40%
500,000 Ford Motor Co., 6.375% Deb 2-1-2029.......... A 494,111 434,421
------------- -------------
BANKS - 7.99%
750,000 Banco Santiago S.A., 7.00% Sub Note
7-18-2007.................................. BBB 744,245 657,664
1,500,000 Bank Austria AG, 7.25% Sub Note 2-15-2017
(f)........................................ AA+ 1,497,317 1,451,578
1,000,000 Bankamerica Corp., 5.75% Sr Note 3-1-2004.... A+ 997,220 956,310
</TABLE>
24
<PAGE>
CORPORATE BONDS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
------------ ------------- ------------- -------------
<C> <S> <C> <C> <C>
$ 1,000,000 Keycorp Capital II, 6.875% Bond 3-17-2029.... BBB $ 988,464 $ 924,206
1,500,000 Keystone Financial Funding Corp., 7.30%
Medium Term Note 5-15-2004................. BBB+ 1,497,249 1,509,631
750,000 National City Corp., 6.875% Sub Note
5-15-2019.................................. A- 748,685 704,494
1,000,000 Republic NY Capital I, 7.75% 11-15-2026...... A- 969,584 981,496
1,100,000 Republic NY Capital II, 7.53% 12-4-2026...... A- 1,053,891 1,057,495
500,000 St. Paul Bancorp, Inc., 7.125% Sr Note
2-15-2004.................................. BBB- 498,348 500,491
------------- -------------
8,995,003 8,743,365
------------- -------------
BROKERAGE AND INVESTMENT - 3.17%
1,500,000 Bear Stearns Capital Trust, 7.00% Variable
Rate 1-15-2027............................. BBB 1,499,153 1,486,344
500,000 Donaldson, Lufkin & Jenrette, 6.50% Note
6-1-2008................................... A- 498,088 472,661
1,500,000 Lehman Brothers Holdings, Inc., 7.375% Note
5-15-2004.................................. A 1,495,581 1,506,823
------------- -------------
3,492,822 3,465,828
------------- -------------
CABLE TELEVISION - 1.66%
1,000,000 Comcast Cable Communications, Inc., 8.50%
Note 5-1-2027 (with rights)................ BBB 998,320 1,133,330
750,000 Cox Communications, Inc., 6.95% Sr Note
1-15-2028.................................. A- 747,260 681,827
------------- -------------
1,745,580 1,815,157
------------- -------------
CAPTIVE AUTO FINANCE - 1.10%
750,000 General Motors Acceptance Corp., 6.15% Bond
4-5-2007................................... A 747,530 717,682
500,000 Toyota Motor Credit, 5.625% Note
11-13-2003................................. AAA 499,276 484,940
------------- -------------
1,246,806 1,202,622
------------- -------------
CHEMICALS - 0.46%
500,000 Equistar Chemicals, L.P., 8.75% Sr Note
2-15-2009 (f).............................. BBB- 524,734 505,353
------------- -------------
DIVERSIFIED FINANCE - 1.15%
1,250,000 AT&T Capital Corp., 7.50% Medium Term Note
11-15-2000................................. BBB 1,249,187 1,257,449
------------- -------------
ENERGY - 0.63%
750,000 NGC Corp. Capital Trust, 8.316% Deb
6-1-2027................................... BBB- 750,000 694,567
------------- -------------
FINANCIAL SERVICES - 1.09%
1,250,000 Prudential Insurance Co., 6.375% Sr Note
7-23-2006 (e).............................. A+ 1,244,979 1,197,198
------------- -------------
FOOD - 0.46%
500,000 Fred Meyer, Inc., 7.45% Sr Note 3-1-2008..... BBB- 531,039 503,168
------------- -------------
FOOD SERVICE - 0.84%
1,000,000 Sysco Corp., 6.50% Deb 8-1-2028.............. AA- 996,883 915,056
------------- -------------
FOREIGN - GOVERNMENT - 2.05%
500,000 British Columbia (Province of), 6.50% Bond
1-15-2026.................................. AA- 511,704 466,905
500,000 Korea (Republic of), 8.875% Note 4-15-2008... BBB- 526,841 525,183
1,250,000 Poland (Republic of), 7.125% Yankee Bond
7-1-2004................................... BBB 1,245,143 1,254,688
------------- -------------
2,283,688 2,246,776
------------- -------------
FOREST PRODUCTS - 0.46%
500,000 Fort James Corp., 6.50% Sr Note 9-15-2002.... BBB- 499,584 498,521
------------- -------------
HOUSING - 1.28%
1,500,000 Masco Corp., 6.625% Deb 4-15-2018............ A- 1,497,949 1,395,428
------------- -------------
LEASING - 0.44%
500,000 Ryder System, Inc., 6.60% Note 11-15-2005.... BBB+ 499,842 476,244
------------- -------------
MEDIA - 1.91%
1,000,000 News America Holdings, 8.875% Deb
4-26-2023.................................. BBB- 992,763 1,089,098
1,000,000 Westinghouse Electric Corp., 7.875% Deb
9-1-2023................................... BBB- 1,105,058 1,001,264
------------- -------------
2,097,821 2,090,362
------------- -------------
</TABLE>
25
<PAGE>
FORTIS SERIES FUND, INC.
DIVERSIFIED INCOME SERIES (CONTINUED)
Schedule of Investments
June 30, 1999 (Unaudited)
CORPORATE BONDS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
------------ ------------- ------------- -------------
<C> <S> <C> <C> <C>
NATURAL GAS TRANSMISSIONS - 1.34%
$ 1,000,000 Tennessee Gas Pipeline, 7.50% Deb 4-1-2017... BBB $ 984,873 $ 992,597
500,000 Trans-Canada Pipelines Ltd., 6.49% Bond
1-21-2009.................................. A- 503,480 479,292
------------- -------------
1,488,353 1,471,889
------------- -------------
NUCLEAR FUEL - 0.44%
500,000 USEC, Inc., 6.625% Sr Note 1-20-2006......... BBB+ 498,795 476,826
------------- -------------
OIL-EQUIPMENT WELLS AND SERVICES - 1.37%
1,000,000 Anadarko Petroleum Corp., 8.25% Deb
11-15-2001................................. BBB+ 1,036,830 1,036,814
500,000 Petroleum Geo-Services ASA, 7.125% Sr Note
3-30-2028.................................. BBB 498,568 459,583
------------- -------------
1,535,398 1,496,397
------------- -------------
OIL-REFINING - 2.66%
1,500,000 Coastal Corp., 7.42% Note 2-15-2037.......... BBB 1,427,436 1,413,623
1,500,000 Tosco Corp., 7.80% 1-1-2027.................. BBB 1,498,359 1,496,763
------------- -------------
2,925,795 2,910,386
------------- -------------
RETAIL-DEPARTMENT STORES - 0.64%
750,000 Federated Department Stores, 6.30% Note
4-1-2009................................... BBB+ 747,995 704,325
------------- -------------
SUPRA-NATIONAL - 0.89%
1,000,000 Corp Andina de Fomento, 7.10% Yankee Bond
2-1-2003................................... BBB+ 999,622 977,515
------------- -------------
TECHNOLOGY - 0.63%
750,000 Lucent Technologies, Inc., 6.45% Bond
3-15-2029.................................. A 745,971 685,314
------------- -------------
TELECOMMUNICATIONS - 2.49%
1,000,000 360 Communications Co., 7.50% Sr Note
3-1-2006................................... A 998,278 1,031,807
750,000 Metronet Communications, 7.55% Sr Disc Note
6-15-2008 (Zero coupon through 6-15-2003,
thereafter 9.95%) (g)...................... BBB 583,226 551,250
500,000 Sprint Capital Corp., 5.875% 5-1-2004........ BBB+ 497,580 481,898
750,000 US West Capital Funding, Inc., 6.50%
11-15-2018................................. A- 745,762 663,773
------------- -------------
2,824,846 2,728,728
------------- -------------
TELEPHONE SERVICES - 3.44%
1,500,000 Century Telephone Enterprises, Inc., 6.15% Sr
Note 1-15-2005............................. BBB+ 1,498,119 1,450,401
2,000,000 GTE Corp., 7.51% Note 4-1-2009............... A 1,985,809 2,072,518
250,000 Telecommunicaciones de Puerto Rico, 6.65%
Note 5-15-2006 (f)......................... BBB 249,909 246,013
------------- -------------
3,733,837 3,768,932
------------- -------------
UTILITIES-ELECTRIC - 4.85%
1,000,000 Detroit Edison Co., 5.90% Medium Term Note
4-16-2001.................................. A- 1,006,057 992,300
1,500,000 Empresa Nacional de Electricidad, 7.325%
Yankee Bond 2-1-2037....................... A- 1,500,000 1,366,436
1,000,000 Niagara Mohawk Power, 7.25% Sr Note
10-1-2002.................................. BBB- 995,473 1,006,979
750,000 Puget Sound Energy, Inc., 7.02% Medium Term
Note 12-1-2027............................. A- 750,000 712,571
1,250,000 TXU Electric Capital V, 8.175% Deb
1-30-2037.................................. BBB- 1,258,849 1,230,788
------------- -------------
5,510,379 5,309,074
------------- -------------
TOTAL CORPORATE BONDS - INVESTMENT GRADE..... $ 53,988,472 $ 52,769,035
------------- -------------
------------- -------------
</TABLE>
CORPORATE BONDS-NON-INVESTMENT GRADE - 17.98%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
------------ ------------- ------------- -------------
<C> <S> <C> <C> <C>
AUTOMOBILE AND MOTOR VEHICLE PARTS - 0.43%
$ 500,000 Federal-Mogul Co., 7.375% Note 1-15-2006
(f)........................................ BB+ $ 498,019 $ 470,817
------------- -------------
BROADCASTING - 0.93%
500,000 Chancellor Media Corp., 9.00% Deb
10-1-2008.................................. B 551,018 508,750
500,000 Sinclair Broadcasting Group, Inc., 10.00% Sr
Sub Note 9-30-2005......................... B 500,000 511,250
------------- -------------
1,051,018 1,020,000
------------- -------------
</TABLE>
26
<PAGE>
CORPORATE BONDS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
------------ ------------- ------------- -------------
<C> <S> <C> <C> <C>
BUSINESS SERVICES - 0.22%
$ 250,000 Iron Mountain, Inc., 8.75% 9-30-2009......... B- $ 250,967 $ 242,500
------------- -------------
CABLE TELEVISION - 3.89%
1,008,177 Australis Media Ltd., 14.00% Sr Sub Disc Note
5-15-2003 (Zero coupon through 5-15-2000,
thereafter 15.75%) (a) (e)................. D 796,220 10
1,250,000 Charter Communications Holdings LLC, 9.92% Sr
Disc Note 4-1-2011 (Zero coupon through
4-1-2004, thereafter 9.92%) (f) (g)........ B+ 789,132 775,000
1,000,000 CSC Holdings, Inc., 10.50% Sr Sub Deb
5-15-2016.................................. BB- 1,014,278 1,131,250
1,000,000 Lenfest Communications, 8.25% Sr Sub Note
2-15-2008.................................. BB- 997,526 1,016,250
750,000 Mediacom LLC/Capital Corp., 7.875% Sr Note
2-15-2011 (f).............................. B+ 739,626 669,375
500,000 Telewest Communication plc, 9.25% Sr Disc
Note 4-15-2009 (Zero coupon until
4-15-2004, thereafter 9.25%) (e) (g)....... B+ 341,849 333,125
500,000 United International Holdings, 10.75% Sr Disc
Note 2-15-2008 (Zero coupon through
2-15-2003, thereafter 10.75%) (g).......... B 347,275 328,750
------------- -------------
5,025,906 4,253,760
------------- -------------
CHEMICALS - 0.47%
500,000 Lyondell Chemical Co., 9.875% 5-1-2007 (e)... BB 500,469 511,250
------------- -------------
COMPUTER-HARDWARE - 1.01%
1,000,000 Unisys Corp., 11.75% Sr Note 10-15-2004...... BB- 1,069,238 1,110,000
------------- -------------
ENERGY - 0.84%
1,000,000 Energy Corp. of America, 9.50% Sr Sub Note
5-15-2007.................................. B 1,000,000 915,000
------------- -------------
ENTERTAINMENT - 0.69%
750,000 Speedway Motorsports, Inc., 8.50% Sr Sub Deb
8-15-2007.................................. B+ 755,701 757,500
------------- -------------
FOOD-MISCELLANEOUS - 0.45%
500,000 Luigino's, Inc., 10.00% Sr Sub Note 2-1-2006
(f)........................................ B- 502,082 488,750
------------- -------------
FOREIGN - GOVERNMENT - 0.99%
250,000 Brazil (Republic of), 11.625% Bond
4-15-2004.................................. B+ 247,734 231,875
500,000 Philippines (Republic of), 8.875% Sr Note
4-15-2008.................................. BB+ 487,782 488,125
500,000 United Mexican States, 6.25% Secured Note Ser
W-B 12-31-2019............................. BB 378,431 366,868
------------- -------------
1,113,947 1,086,868
------------- -------------
LEISURE TIME-AMUSEMENTS - 0.00%
86,615 Capital Gaming Intl, Inc., 12.00% Sr Note
5-28-2001.................................. NR 0 9
------------- -------------
MEDICAL SUPPLIES - 0.49%
500,000 Maxxim Medical, 10.50% Sr Sub Note
8-1-2006................................... B 545,071 537,500
------------- -------------
OIL-CRUDE PETROLEUM AND GAS - 0.46%
500,000 Ocean Energy, Inc., 8.875% Sr Sub Note
7-15-2007.................................. BB- 508,332 498,750
------------- -------------
PAPER - 0.46%
500,000 Packaging Corp. of America, 9.625% Sr Sub
Note 4-1-2009 (f).......................... B 513,262 507,500
------------- -------------
STEEL AND IRON - 0.23%
250,000 Weirton Steel Corp., 10.875% Sr Note
10-15-1999................................. B 250,505 250,313
------------- -------------
TELECOMMUNICATIONS - 4.63%
500,000 Intermedia Communications, Inc., 8.50% Sr
Note 1-15-2008............................. B 511,790 457,500
250,000 McleodUSA, Inc., 8.125% Sr Note 2-15-2009
(f)........................................ NR 248,166 231,250
750,000 Nextel Communications, Inc., 10.35% Sr Disc
Note 9-15-2007 (Zero coupon through
9-15-2002, thereafter 10.65%) (g).......... B- 553,233 545,625
150,000 Omnipoint Corp., 11.625% Sr Note Ser A
8-15-2006.................................. CCC+ 146,584 153,000
250,000 Orange plc, 9.00% Sr Sub Deb 6-1-2009 (e).... BB- 250,937 251,250
750,000 Qwest Communications International, Inc.,
7.25% Sr Note Ser B 11-1-2008.............. BB+ 750,000 735,000
750,000 RCN Corp., 10.00% Sr Note 10-15-2007......... NR 768,573 753,750
1,000,000 Rogers Cantel, Inc., 9.375% Sr Secured Deb
6-1-2008................................... BB+ 1,057,222 1,036,250
500,000 Splitrock Services, Inc., 11.75% Sr Note
7-15-2008.................................. NR 503,700 467,500
500,000 Winstar Communications, Inc., 9.83% Sr Disc
Note 10-15-2005 (Zero coupon until
10-15-2000, thereafter 14.00%) (g)......... CCC+ 456,288 437,500
------------- -------------
5,246,493 5,068,625
------------- -------------
</TABLE>
27
<PAGE>
FORTIS SERIES FUND, INC.
DIVERSIFIED INCOME SERIES (CONTINUED)
Schedule of Investments
June 30, 1999 (Unaudited)
CORPORATE BONDS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
------------ ------------- ------------- -------------
<C> <S> <C> <C> <C>
TELEPHONE SERVICES - 0.89%
$ 500,000 Alaska Communications SY, 9.375% Sr Sub Note
5-15-2009 (e).............................. B+ $ 500,476 $ 480,000
500,000 Level 3 Communications, Inc., 9.125% Sr Note
5-1-2008................................... B 498,761 491,250
------------- -------------
999,237 971,250
------------- -------------
TEXTILE MANUFACTURING - 0.90%
1,000,000 Pillowtex Corp., 10.00% Sr Sub Note
11-15-2006................................. B+ 1,045,912 990,625
------------- -------------
TOTAL CORPORATE BONDS - NON-INVESTMENT
GRADE...................................... $ 20,876,159 $ 19,681,017
------------- -------------
------------- -------------
</TABLE>
U.S. GOVERNMENT SECURITIES-17.59%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Cost (b) Value (c)
------------ ------------- -------------
<C> <S> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 7.96%
MORTGAGE BACKED SECURITIES:
$ 3,522,417 6.00% 2013................................... $ 3,532,064 $ 3,402,119
275,011 6.30% 2008................................... 275,344 268,594
1,445,881 6.63% 2005................................... 1,483,111 1,450,717
2,668,721 7.00% 2028................................... 2,709,145 2,641,797
939,163 7.50% 2022-2027.............................. 968,909 949,812
------------- -------------
TOTAL FEDERAL NATIONAL MORTGAGE
ASSOCIATION................................ 8,968,573 8,713,039
------------- -------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -
1.87%
MORTGAGE BACKED SECURITIES:
1,298,279 9.00% 2020................................... 1,359,948 1,377,915
624,849 9.50% 2019................................... 648,907 667,039
------------- -------------
TOTAL GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION................................ 8,788,974 9,00,414
------------- -------------
U.S. TREASURY SECURITIES - 7.76%
BONDS:
10,450,000 6.04% 2019 Zero Coupon Strip (g)............. 3,248,941 3,035,297
2,000,000 8.125% 2021.................................. 2,590,567 2,428,750
------------- -------------
5,839,508 5,464,047
------------- -------------
NOTES:
3,000,000 6.125% 2007.................................. 3,028,325 3,032,814
------------- -------------
TOTAL U.S. TREASURY SECURITIES............... 8,867,833 8,496,861
------------- -------------
------------- -------------
TOTAL U.S. GOVERNMENT SECURITIES............. $ 19,845,261 $ 19,254,854
------------- -------------
------------- -------------
</TABLE>
COMMON STOCKS-0.00%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
------------ ------------- -------------
<C> <S> <C> <C>
CONSUMER GOODS - 0.00%
1,000 Iridium LLC/Capital Corp. (Warrants) (a)
(e)........................................ $ 96,501 $ 500
------------- -------------
LEISURE TIME-AMUSEMENTS - 0.00%
6,300 Capital Gaming International, Inc. (a)....... 0 63
------------- -------------
TOTAL COMMON STOCKS.......................... 96,501 563
------------- -------------
------------- -------------
TOTAL LONG-TERM INVESTMENTS.................. $ 109,116,280 $ 106,316,262
------------- -------------
------------- -------------
</TABLE>
28
<PAGE>
SHORT-TERM INVESTMENTS-0.04%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
------------ -------------
<C> <S> <C>
BANKS - 0.04%
$ 45,461 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 4.91%........ $ 45,461
-------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$109,161,741)(b)........................... $ 106,361,723
-------------
-------------
</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, 1999, the cost of securities for federal income tax purposes
was $109,194,752 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 1,018,964
Unrealized depreciation..................................... (3,851,993)
- --------------------------------------------------------------------------
Net unrealized depreciation................................. $ (2,833,029)
- --------------------------------------------------------------------------
</TABLE>
(c) See Note 1 of accompanying Notes to Financial Statement 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 9.45% of total net assets as of June 30, 1999.
(e) Securities issued within the terms of a private placement memorandum,
exempt from registration under Section 144A of the Securities Act of 1933,
as amended, and may be sold only to dealers in that program or to other
"accredited investors". These investments have been identified by portfolio
management as illiquid securities:
<TABLE>
<CAPTION>
Year Acquired Shares/Par Security Cost Basis
- ------------------------------ ---------- ---------------------------------------- ------------------
<S> <C> <C> <C>
1999 500,000 Alaska Communications SY, 9.375% Sr Sub
Note 5-15-2009 $ 500,476
1997 1,008,177 Australis Media Ltd., 16.20 Sr Sub Disc
Note 5-15-2003 (Zero coupon through
5-15-2000, thereafter 15.75%) 796,220
1996 390,092 DLJ Mortgage Acceptance Corp., 7.28% Ser
1996-CF1 3-13-2028 392,936
1997 1,000 Iridium LLC/Capital Corp. (Warrants) 96,501
1999 500,000 Lyondell Chemical Co., 9.875% 5-1-2007 500,469
1999 250,000 Orange plc, 9.00% Sr Sub Deb 6-1-2009 250,937
1998 1,250,000 Prudential Insurance Co., 6.375% Sr Note
7-23-2006 1,244,979
1999 500,000 Telewest Communication plc, 8.87% Sr
Note 4-15-2009 (Zero coupon until
4-15-2004, thereafter 9.25%) 341,849
The aggregate value of these securities at June 30, 1999, was $3,168,820, which represents 2.90% of
total net assets.
</TABLE>
(f) Securities sold within the terms of a private placement memorandum, exempt
from registration under Section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or to other
"accredited investors". Pursuant to guidelines adopted by the Board of
Directors, these issues are deemed to be liquid. The aggregate value of
these securities at June 30, 1999, was $6,756,910, which represents 6.17%
of total net assets.
(g) The interest rate disclosed for these securities represents the effective
yield on the date of acquisition.
(h) The interest rate disclosed for principal only strips represents the
effective yield at June 30, 1999, based upon future cash flows. This
investment has been identified by portfolio management as a liquid
security. The aggregate value of this security at June 30, 1999, was
$410,196, which represents .37% of total net assets.
* Moody's Rating
29
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL BOND SERIES
Schedule of Investments
June 30, 1999 (Unaudited)
CORPORATE BONDS-INVESTMENT GRADE-63.69%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
Principal & Poor's Market
Amount (d) Rating Cost (a)(d) Value (b)(d)
----------- --------- ------------ ------------
<C> <S> <C> <C> <C>
AUSTRALIA - 6.60%
$1,140,000 Australian Government (Australian Dollar),
9.00% 9-15-2004............................ AAA $ 857,446 $ 856,742
1,100,000 Australian Government (Australian Dollar),
9.75% 3-15-2002............................ AAA 787,836 803,535
------------ ------------
1,645,282 1,660,277
------------ ------------
AUSTRIA - 2.89%
700,000 Republic of Austria (US Dollar), 7.875%
3-26-2002.................................. AAA 722,104 726,460
------------ ------------
CANADA - 5.84%
950,000 Canadian Government (Canadian Dollar), 7.00%
12-1-2006.................................. AAA 703,395 699,236
741,373 Canadian Government (European Monetary Unit),
4.875% 7-7-2008............................ AA+ 802,992 771,430
------------ ------------
1,506,387 1,470,666
------------ ------------
DENMARK - 7.59%
4,100,000 Kingdom of Denmark (Danish Krone), 6.00%
11-15-2009................................. AAA 731,289 618,763
1,000,000 Kingdom of Denmark (Danish Krone), 7.00%
11-15-2007................................. AAA 182,613 158,526
7,600,000 Kingdom of Denmark (Danish Krone), 9.00%
11-15-2000................................. AAA 1,231,978 1,132,603
------------ ------------
2,145,880 1,909,892
------------ ------------
FRANCE - 5.75%
1,370,000 Government of France (European Monetary
Unit), 4.50% Treasury Bill 7-12-2002....... Aaa* 1,515,747 1,447,583
------------ ------------
GERMANY - 24.14%
1,580,000 Bundesobligation (European Monetary Unit),
3.25% 2-17-2004............................ Aaa* 1,659,270 1,588,224
1,000,000 Bundesobligation (European Monetary Unit),
4.50% 5-19-2003............................ AAA 1,092,730 1,057,701
1,235,727 Bundesrepublic Deutschland (European Monetary
Unit), 6.00% Bond 1-5-2006................. Aaa* 1,495,219 1,398,114
460,162 Deutsche Ausgleichsbank (European Monetary
Unit), 6.375% 11-7-2002.................... AAA 545,008 512,254
587,985 Deutsche Pfandbrief Bank (European Monetary
Unit), 4.75% 7-15-2008 (e)................. AAA 628,948 605,313
178,952 Freistaat Bayern (European Monetary Unit),
6.00% 10-30-2006........................... NR 201,912 201,367
281,210 Kredit Fuer Wiederaufbau (European Monetary
Unit), 5.00% 1-4-2009...................... AAA 301,234 296,681
204,516 Kredit Fuer Wiederaufbau (European Monetary
Unit), 5.50% 1-22-2018..................... AAA 220,930 209,110
360,000 Landeskreditbank Baden-Wuerttemberg (German
Deutschemark), 6.625% 8-20-2003............ AAA 255,315 207,686
------------ ------------
6,400,566 6,076,450
------------ ------------
NETHERLANDS - 1.56%
344,872 Netherlands Government (European Monetary
Unit), 7.00% 2-15-2003..................... AAA 409,681 394,006
------------ ------------
UNITED KINGDOM - 5.71%
720,000 United Kingdom Treasury (British Pound),
9.00% 10-13-2008........................... AAA 1,578,510 1,437,737
------------ ------------
UNITED STATES - 3.61%
850,000 General Electric Capital Corp., 8.125%
2-23-2007.................................. AAA 916,293 910,052
------------ ------------
TOTAL CORPORATE BONDS - INVESTMENT GRADE..... $16,840,450 $16,033,123
------------ ------------
------------ ------------
</TABLE>
U.S. GOVERNMENT SECURITIES-30.45%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Cost (a) Value (b)
----------- ------------ ------------
<C> <S> <C> <C>
FEDERAL HOME LOAN MORTGAGE CORP. - 3.85%
NOTES:
$ 990,000 5.75% 2003-2009.............................. $ 1,009,230 $ 968,602
------------ ------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 6.10%
NOTES:
1,300,000 5.125% 2004.................................. 1,237,465 1,245,629
300,000 6.00% 2008................................... 304,882 290,103
------------ ------------
TOTAL FEDERAL NATIONAL MORTGAGE
ASSOCIATION................................ 1,542,347 1,535,732
------------ ------------
</TABLE>
30
<PAGE>
U.S. GOVERNMENT SECURITIES-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Cost (a) Value (b)
----------- ------------ ------------
<C> <S> <C> <C>
U.S. TREASURY SECURITIES - 20.50%
BONDS:
$ 340,000 8.00% 2021................................... $ 419,948 $ 409,063
635,000 11.75% 2014.................................. 960,137 903,684
830,000 12.50% 2014.................................. 1,344,986 1,220,879
------------ ------------
2,725,071 2,533,626
------------ ------------
NOTES:
1,400,000 5.00% 2001................................... 1,396,301 1,389,063
1,150,000 7.50% 2005................................... 1,234,497 1,238,406
------------ ------------
2,630,798 2,627,469
------------ ------------
TOTAL U.S. TREASURY SECURITIES............... 5,355,869 5,161,095
------------ ------------
------------ ------------
TOTAL U.S. GOVERNMENT SECURITIES............. 7,907,446 7,665,429
------------ ------------
------------ ------------
TOTAL LONG-TERM INVESTMENTS.................. $24,747,896 $23,698,552
------------ ------------
------------ ------------
</TABLE>
SHORT-TERM INVESTMENTS-2.73%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (b)
--------- ------------
<C> <S> <C>
BANKS - 0.00%
$ 777 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 4.91%........ $ 777
------------
INVESTMENT COMPANY - 2.73%
685,949 First American Institutional Government Fund,
Current rate -- 4.58%...................... 685,949
------------
TOTAL SHORT-TERM INVESTMENTS................. 686,726
------------
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$25,434,622) (a)........................... $24,385,278
------------
------------
</TABLE>
(a) At June 30, 1999, the cost of securities for federal income tax purposes
was $25,456,438 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 32,128
Unrealized depreciation..................................... (1,103,288)
- -------------------------------------------------------------------------
Net unrealized depreciation................................. $(1,071,160)
- -------------------------------------------------------------------------
</TABLE>
(b) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(c) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets.
(d) Cost and market value are stated in U.S. dollars; principal amount is
stated in the currency indicated.
(e) Securities sold within the terms of a private placement memorandum, exempt
from registration under Section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or to other
"accredited investors". The portfolio entered into the following Section
144A security transaction: July 15, 1998 the portfolio acquired $587,985
par of Deutsche Pfandbrief Bank due 2008 with a cost basis of $628,948. The
value of this security at June 30, 1999, is $605,313 which represents 2.40%
of total net assets. This investment has been identified by portfolio
management as an illiquid security.
* Moody's Rating
31
<PAGE>
FORTIS SERIES FUND, INC.
HIGH YIELD SERIES
Schedule of Investments
June 30, 1999 (Unaudited)
PREFERRED STOCKS-0.71%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
----- ------------ ------------
<C> <S> <C> <C>
OIL-REFINING - 0.71%
500 R&B Falcon Corp., 13.875% Cumm. Preferred
(with warrants) (e)........................ $ 500,000 $ 506,954
------------ ------------
</TABLE>
CORPORATE BONDS-INVESTMENT GRADE - 1.70%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- --------- ------------ ------------
<C> <S> <C> <C> <C>
FINANCIAL SERVICES - 0.13%
$ 81,000 Homeside, Inc., 11.25% Second Priority Sr
Secured Note 5-15-2003..................... A+ $ 81,000 $ 92,138
------------ ------------
TELECOMMUNICATIONS - 1.57%
1,000,000 Comcast Cellular Holdings, 9.50% Sr Note
5-1-2007................................... BBB- 1,040,437 1,118,750
------------ ------------
TOTAL CORPORATE BONDS - INVESTMENT GRADE..... $ 1,121,437 $ 1,210,888
------------ ------------
------------ ------------
</TABLE>
CORPORATE BONDS-NON-INVESTMENT GRADE - 87.30%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- --------- ------------ ------------
<C> <S> <C> <C> <C>
APPAREL - 0.76%
$ 500,000 Hosiery Corp. of America, Inc., 13.75% Sr Sub
Note 8-1-2002.............................. B- $ 524,922 $ 540,000
------------ ------------
AUTOMOBILE AND MOTOR VEHICLE PARTS - 3.03%
1,000,000 Diamond Triumph Auto, 9.25% Sr Note 4-1-2008
(e)........................................ B+ 1,018,514 970,000
500,000 Dura Operating Corp., 9.00% Sr Sub Note
5-1-2009 (e)............................... B 500,672 477,500
750,000 Hayes Lemmerz International, Inc., 8.25% Sr
Sub Note 12-15-2008 (f).................... B 750,000 714,375
------------ ------------
2,269,186 2,161,875
------------ ------------
BROADCASTING - 7.22%
250,000 Ackerley Group, Inc., 9.00% Sr Sub Note
1-15-2009.................................. B 250,000 246,875
2,500,000 Chancellor Media Corp., 8.00% Sr Note
11-1-2008.................................. B+ 2,479,687 2,450,000
500,000 Grupo Televisa S.A., 8.08% Sr Disc Note
5-15-2008 (Zero coupon through 5-15-2001,
thereafter 13.25%) (g)..................... BB 434,079 403,750
500,000 Shop at Home, Inc., 11.00% Sr Secured Note
4-1-2005................................... B 500,000 500,000
1,000,000 Sinclair Broadcasting Group, Inc., 10.00% Sr
Sub Note 9-30-2005......................... B 1,028,953 1,022,500
500,000 Young Broadcasting Corp., 11.75% Sr Sub Note
11-15-2004................................. B 543,515 530,000
------------ ------------
5,236,234 5,153,125
------------ ------------
BUSINESS SERVICES - 1.06%
750,000 Avis Rent A Car, Inc., 11.00% Sr Sub Note
5-1-2009 (f)............................... BB- 750,017 759,375
------------ ------------
CABLE TELEVISION - 13.12%
1,000,000 Adelphia Communications, Inc., 9.25% Sr Note
10-1-2002.................................. B+ 1,014,752 1,012,500
3,033,461 Australis Media Ltd., Sr Sub Disc Note
5-15-2003 (Zero coupon through 5-15-2000,
thereafter 15.75%) (with warrants) (a)
(e)........................................ D 2,277,149 30
1,000,000 Century Communications Corp., 8.875% Sr Note
1-15-2007.................................. BB- 1,028,071 1,000,000
2,000,000 Charter Communications Holdings LLC, 9.92% Sr
Disc Note 4-1-2011 (Zero coupon through
4-1-2004, thereafter 9.92%) (f) (g)........ B+ 1,262,611 1,240,000
1,000,000 CSC Holdings, Inc., 9.25% Sr Sub Note
11-1-2005.................................. BB- 1,045,448 1,032,500
500,000 Galaxy Telecom L.P., 12.375% Sr Sub Note
10-1-2005.................................. B- 540,791 552,500
500,000 Lenfest Communications, 7.625% Sr Note
2-15-2008.................................. BB+ 498,740 510,000
500,000 Lenfest Communications, 8.25% Sr Sub Note
2-15-2008.................................. BB- 498,763 508,125
500,000 Mediacom LLC/Capital Corp., 7.875% Sr Note
2-15-2011 (f).............................. B+ 445,945 446,250
500,000 Mediacom LLC/Capital Corp., 8.50% Sr Note
4-15-2008.................................. B+ 500,000 470,000
500,000 Olympus Communication L.P., 10.625% Sr Note
11-15-2006................................. B+ 500,000 540,000
500,000 Rifkin Acquisition Partners L.P., 11.125% Sr
Sub Note 1-15-2006......................... B- 547,263 557,500
</TABLE>
32
<PAGE>
CORPORATE BONDS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- --------- ------------ ------------
<C> <S> <C> <C> <C>
$1,500,000 Telewest Communication plc, 8.87% Sr Disc
Note 4-15-2009 (Zero coupon until
4-15-2004, thereafter 9.25%) (e) (g)....... B+ $ 990,356 $ 999,375
750,000 United International Holdings, 11.27% Sr Disc
Note 2-15-2008 (Zero coupon through
2-15-2003, thereafter 10.75%) (g).......... B 504,453 493,125
------------ ------------
11,654,342 9,361,905
------------ ------------
CHEMICALS - 2.14%
500,000 Agricultural Minerals & Chemicals, 10.75% Sr
Note 9-30-2003............................. BB- 518,354 495,625
500,000 NL Industries, Inc., 11.75% Sr Secured Note
10-15-2003................................. B 545,116 525,000
1,000,000 Trans-Resources, Inc., 11.88% Sr Disc Note
3-15-2008 (Zero coupon through 3-15-2003,
thereafter 12.00%) (g)..................... B- 653,184 505,000
------------ ------------
1,716,654 1,525,625
------------ ------------
CONSUMER GOODS - 0.73%
250,000 Chattem, Inc., 12.75% Sr Sub Note Ser B
6-15-2004.................................. B- 256,914 272,500
125,000 Simmons Co., 10.25% Sr Sub Note 3-15-2009
(f)........................................ B- 125,000 126,875
125,000 Windmere-Durable Holdings, 10.00% Sr Sub Note
7-31-2008.................................. B- 125,000 119,375
------------ ------------
506,914 518,750
------------ ------------
DAIRY PRODUCTS - 1.26%
1,000,000 Fage Dairy Industries S.A., 9.00% Sr Note
2-1-2007................................... BB 969,654 900,000
------------ ------------
ELECTRICAL-COMPONENTS AND PARTS - 0.68%
500,000 Wesco Distribution, Inc., 9.125% Sr Sub Note
6-1-2008................................... B 498,490 483,750
------------ ------------
ENERGY - 1.28%
1,000,000 Energy Corp. of America, 9.50% Sr Sub Note
5-15-2007.................................. B 997,811 915,000
------------ ------------
ENTERTAINMENT - 1.37%
500,000 Isle of Capri Casinos, 8.75% Sr Sub Note
4-15-2009 (e).............................. B 500,000 468,750
500,000 Speedway Motorsports, Inc., 8.50% Sr Sub Deb
8-15-2007.................................. B+ 504,347 505,000
------------ ------------
1,004,347 973,750
------------ ------------
FOOD-MISCELLANEOUS - 2.12%
750,000 Agrilink Foods, Inc., 11.875% Sr Sub Note
11-1-2008.................................. B 750,000 772,500
250,000 Fresh Foods, Inc., 10.75% Sr Note 6-1-2006... B 250,000 248,125
500,000 Luigino's, Inc., 10.00% Sr Sub Note 2-1-2006
(f)........................................ B- 502,082 488,750
------------ ------------
1,502,082 1,509,375
------------ ------------
FOREIGN-GOVERNMENT - 0.51%
500,000 United Mexican States, 6.25% Secured Note Ser
W-B 12-31-2019............................. BB 378,431 366,869
------------ ------------
FOREST PRODUCTS - 1.79%
750,000 Domtar, Inc., 8.75% Note 8-1-2006............ BB+ 782,158 776,250
500,000 Stone Container Corp., 9.875% Sr Note
2-1-2001................................... B 506,047 503,125
------------ ------------
1,288,205 1,279,375
------------ ------------
HEALTH CARE SERVICES - 2.06%
1,000,000 Quorum Health Group, Inc., 8.75% Sr Sub Note
11-1-2005.................................. B+ 1,036,848 979,375
500,000 Tenet Healthcare Corp., 8.625% Sr Sub Note
1-15-2007.................................. BB- 515,609 492,500
------------ ------------
1,552,457 1,471,875
------------ ------------
LEISURE TIME-AMUSEMENTS - 3.92%
1,500,000 Argosy Gaming, 10.75% Sr Sub Note 6-1-2009
(e)........................................ B- 1,500,761 1,533,750
43,307 Capital Gaming International, Inc., 12.00% Sr
Note 5-15-2001 (e)......................... NR 0 4
250,000 Florida Panthers Holdings, 9.875% Sr Sub Note
4-15-2009.................................. B- 250,401 233,750
1,000,000 Station Casinos, Inc., 10.125% Sr Sub Note
3-15-2006.................................. B+ 968,404 1,032,500
------------ ------------
2,719,566 2,800,004
------------ ------------
</TABLE>
33
<PAGE>
FORTIS SERIES FUND, INC.
HIGH YIELD SERIES (CONTINUED)
Schedule of Investments
June 30, 1999 (Unaudited)
CORPORATE BONDS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- --------- ------------ ------------
<C> <S> <C> <C> <C>
MACHINERY - 1.86%
$ 500,000 Anthony Crane Rentals, 10.375% Sr Note
8-1-2008................................... B $ 500,000 $ 482,500
1,000,000 Clark Material Handling Co., 10.75% Sr Note
11-15-2006................................. B+ 1,024,241 845,000
------------ ------------
1,524,241 1,327,500
------------ ------------
MACHINERY-TOOLS - 1.51%
1,100,000 Simonds Industries, 10.25% Sr Sub Note
7-1-2008................................... B- 1,061,368 1,078,000
------------ ------------
MEDICAL SUPPLIES - 0.75%
500,000 Maxxim Medical, 10.50% Sr Sub Note
8-1-2006................................... B 545,071 537,500
------------ ------------
MISCELLANEOUS - 0.66%
500,000 La Petite Acad/LPA Holdings, 10.00% Sr Note
5-15-2008.................................. B- 500,000 471,250
------------ ------------
OFFICE EQUIPMENT AND SUPPLIES - 0.66%
500,000 Iron Mountain, Inc., 8.25% Sr Sub Note
7-1-2011 (e)............................... B- 498,822 467,500
------------ ------------
OIL-CRUDE PETROLEUM AND GAS - 1.40%
1,000,000 Ocean Energy, Inc., 8.875% Sr Sub Note
7-15-2007.................................. BB- 991,940 997,500
------------ ------------
OIL-OFFSHORE DRILLING - 1.09%
750,000 RBF Finance Co., 11.375% Sr Secured Note
3-15-2009 (f).............................. BB- 750,000 776,250
------------ ------------
PAPER - 1.98%
1,000,000 Packaging Corp. of America, 9.625% Sr Sub
Note 4-1-2009 (f).......................... B 1,000,000 1,015,000
500,000 Plainwell, Inc., 11.00% Sr Sub Note
3-1-2008................................... B- 500,000 400,000
------------ ------------
1,500,000 1,415,000
------------ ------------
PRINTING - 4.20%
500,000 Cadmus Communication Corp., 9.75% Sr Sub Note
6-1-2009 (e)............................... B 500,307 500,000
500,000 Day International Group, Inc., 11.125% Sr
Note 6-1-2005.............................. B+ 540,047 530,000
750,000 Mail-Well Corp., 8.75% Sr Sub Note
12-15-2008................................. B+ 752,934 727,500
250,000 Phoenix Color Corp., 10.375% Sr Sub Note
2-1-2009................................... B- 250,847 245,000
1,000,000 World Color Press, Inc., 8.375% Sr Sub Note
11-15-2008................................. BB- 1,000,000 995,000
------------ ------------
3,044,135 2,997,500
------------ ------------
PUBLISHING - 1.36%
500,000 Garden State Newspapers, 8.75% Sr Sub Note
10-1-2009.................................. B+ 503,446 490,000
500,000 Primedia, Inc., 7.625% Sr Note 4-1-2008...... BB- 497,400 477,500
------------ ------------
1,000,846 967,500
------------ ------------
RESTAURANTS AND FRANCHISING - 0.68%
500,000 Advantica Restaurant Group, Inc., 11.25% Sr
Note 1-15-2008............................. B 537,450 481,250
------------ ------------
SHIP BUILDING, SHIPPING - 1.45%
1,000,000 Newport News Ship Building, 9.25% Sr Sub Note
12-1-2006.................................. B+ 1,057,519 1,035,000
------------ ------------
STEEL AND IRON - 0.67%
500,000 Wheeling-Pittsburgh Corp., 9.25% Sr Note
11-15-2007................................. BB- 510,264 475,000
------------ ------------
TELECOMMUNICATIONS - 18.56%
250,000 Centennial Cellular, 10.75% Sr Sub Note
12-15-2008 (f)............................. CCC+ 250,000 258,125
500,000 Emmis Communications Corp., 8.125% Sr Sub
Note 3-15-2009 (f)......................... B- 500,000 475,625
750,000 Hermes Europe Railtel B.V., 10.375% Sr Sub
Note 1-15-2009............................. B 750,000 759,375
500,000 Hyperion Telecommunications, 12.25% Sr Note
9-1-2004................................... BB- 532,965 527,500
500,000 Intermedia Communications, Inc., 7.19% Sr
Disc Note 7-15-2007 (Zero Coupon through
7-15-2002, thereafter 11.25%) (g).......... B 403,457 356,250
750,000 Intermedia Communications, Inc., 8.50% Sr
Note 1-15-2008............................. B 776,188 686,250
1,000,000 ITC Deltacom, Inc., 11.00% Sr Note
6-1-2007................................... B 1,120,599 1,086,250
500,000 ITC Deltacom, Inc., 9.72% Sr Note
11-15-2008................................. B 500,000 512,500
250,000 McleodUSA, Inc., 8.125% Sr Note 2-15-2009
(f)........................................ NR 250,000 231,250
970,000 McleodUSA, Inc., 9.25% Sr Note 7-15-2007..... B+ 1,039,246 962,725
250,000 McleodUSA, Inc., 9.50% Sr Note 11-1-2008..... B+ 250,000 248,125
500,000 Metromedia Fiber Network, Inc., 10.00% Sr
Note 11-15-2008............................ B 502,419 513,750
</TABLE>
34
<PAGE>
CORPORATE BONDS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- --------- ------------ ------------
<C> <S> <C> <C> <C>
$ 500,000 Metronet Communications, 6.46% Sr Disc Note
6-15-2008 (Zero coupon through 6-15-2003,
thereafter 9.95%) (g)...................... B $ 388,818 $ 367,500
2,000,000 Nextel Communications, Inc., 9.12% Sr Disc
Note 9-15-2007 (Zero coupon through
9-15-2002, thereafter 10.65%) (g).......... B- 1,497,868 1,455,000
1,750,000 NTL, Inc., 12.375% Sr Note 10-1-2008 (Zero
coupon through 10-1-2003, thereafter
12.375%) (g)............................... B- 1,060,906 1,194,375
650,000 Omnipoint Corp., 11.625% Sr Note Ser A
8-15-2006.................................. CCC+ 633,436 663,000
1,000,000 Qwest Communications International, 8.29% Sr
Disc Note 2-1-2008 (Zero coupon through
2-1-2003, thereafter 8.29%) (g)............ BB+ 748,313 740,000
1,000,000 Rogers Cantel, Inc., 9.375% Sr Secured Deb
6-1-2008................................... BB+ 1,057,222 1,036,250
1,250,000 Splitrock Services, Inc., 11.75% Sr Note
7-15-2008.................................. NR 1,237,610 1,168,750
------------ ------------
13,499,047 13,242,600
------------ ------------
TELEPHONE SERVICES - 2.32%
3,000,000 Telecorp PCS, Inc., 11.625% Sr Sub Note
4-15-2009 (Zero coupon through 4-15-2004,
thereafter 11.625%) (e) (g)................ B3* 1,746,223 1,657,500
------------ ------------
TEXTILE MANUFACTURING - 2.53%
500,000 Anvil Knitwear, Inc., 10.875% Sr Note
3-15-2007.................................. B- 509,286 325,000
750,000 Galey & Lord, Inc., 9.125% Sr Sub Note
3-1-2008................................... B 746,584 491,250
1,000,000 Pillowtex Corp., 10.00% Sr Sub Note
11-15-2006................................. B+ 1,066,463 990,000
------------ ------------
2,322,333 1,806,250
------------ ------------
UTILITIES-ELECTRIC - 1.32%
1,000,000 AES Corp., 8.50% Sr Sub Note 11-1-2007....... B+ 1,024,623 942,500
------------ ------------
WASTE DISPOSAL - 1.25%
500,000 IT Group, Inc., 11.25% Sr Sub Note 4-1-2009
(e)........................................ B+ 500,000 480,000
375,000 Norcal Waste Systems, Inc., 13.50% Increasing
Rate Sr Note 11-15-2005.................... BB- 375,000 414,375
------------ ------------
875,000 894,375
------------ ------------
TOTAL CORPORATE BONDS - NON-INVESTMENT
GRADE...................................... $66,558,194 $62,290,628
------------ ------------
------------ ------------
</TABLE>
COMMON STOCKS AND WARRANTS-0.40%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
----------- ------------ ------------
<C> <S> <C> <C>
APPAREL - 0.01%
250 Hosiery Corp. of America, Inc. Class A (a)
(e)........................................ $ 4,230 $ 10,000
------------ ------------
AUTOMOBILE AND MOTOR VEHICLE PARTS - 0.00%
250 Highwaymaster Communications, Inc. (Warrants)
(a) (e).................................... 2,500 62
------------ ------------
CABLE TELEVISION - 0.00%
1,500 People's Choice T.V. Corp. (Warrants) (a)
(e)........................................ 15 0
------------ ------------
CONSUMER GOODS - 0.00%
1,000 Wireless One, Inc. (Warrants) (a)............ 7,831 10
------------ ------------
LEISURE TIME-AMUSEMENTS - 0.00%
3,150 Capital Gaming International, Inc. (a)....... 0 32
------------ ------------
PUBLISHING - 0.01%
2,217 Marvel Enterprises, Inc. Class A (Warrants)
(a)........................................ 149,757 2,078
3,755 Marvel Enterprises, Inc. Class C (Warrants)
(a)........................................ 507,310 939
------------ ------------
657,067 3,017
------------ ------------
TELECOMMUNICATIONS - 0.38%
3,300 Clearnet Communications, Inc. (Warrants) (a)
(e)........................................ 42,075 27,383
14,168 e.spire Communications, Inc. (Warrants)
(a)........................................ 137,340 149,650
2,560 Powertel, Inc. (Warrants) (a) (e)............ 18,824 19,584
</TABLE>
35
<PAGE>
FORTIS SERIES FUND, INC.
HIGH YIELD SERIES (CONTINUED)
Schedule of Investments
June 30, 1999 (Unaudited)
COMMON STOCKS AND WARRANTS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
----------- ------------ ------------
<C> <S> <C> <C>
1,250 Splitrock Service (Warrants) (a)............. $ 15,398 $ 75,000
------------ ------------
213,637 271,617
------------ ------------
TOTAL COMMON STOCKS AND WARRANTS............. 885,280 284,738
------------ ------------
------------ ------------
TOTAL LONG-TERM INVESTMENTS.................. $69,064,911 $64,293,208
------------ ------------
------------ ------------
</TABLE>
SHORT-TERM INVESTMENTS - 7.52%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
----------- ------------
<C> <S> <C>
BANKS - 2.59%
$1,845,290 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 4.80%........ $ 1,845,290
------------
DIVERSIFIED FINANCE - 4.93%
3,522,000 Associates Corp. Master Variable Rate Note,
Current rate -- 4.71%...................... 3,522,000
------------
TOTAL SHORT-TERM INVESTMENTS................. 5,367,290
------------
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$74,432,201)(b)............................ $69,660,498
------------
------------
</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, 1999, the cost of securities for federal income tax purposes
was $74,435,351 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 788,447
Unrealized depreciation..................................... (5,563,300)
- -------------------------------------------------------------------------
Net unrealized depreciation................................. $(4,774,853)
- -------------------------------------------------------------------------
</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 7.86% of total net assets as of June 30, 1999.
(e) Securities sold within the terms of a private placement memorandum, exempt
from registration under Section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or to other
"accredited investors". These investments have been identified by portfolio
management as illiquid securities:
<TABLE>
<CAPTION>
Period Acquired Shares/Par Security Cost Basis
- ---------------- ----------- ---------------------------------------------------------------- -----------
<S> <C> <C> <C>
1990 1,500,000 Argosy Gaming due 2009 - 144A $ 1,500,761
1996 - 1998 3,033,461 Australis Media Ltd. due 2003 2,277,149
1999 500,000 Cadmus Communication Corp. due 2009 - 144A 500,307
1999 43,307 Capital Gaming International, Inc. due 2001 0
1996 3,300 Clearnet Communications, Inc. (Warrants) 42,075
1998 1,000,000 Diamond Triumph Auto due 2008 - 144A 1,018,514
1999 500,000 Dura Operating Corp. due 2009 - 144A 500,672
1998 250 Highwaymaster Communications, Inc. (Warrants) - 144A 2,500
1994 250 Hosiery Corp. of America, Inc. Class A - 144A 4,230
1999 500,000 Iron Mountain, Inc. due 2011 - 144A 498,822
1999 500,000 Isle of Capri Casinos due 2009 - 144A 500,000
1999 500,000 IT Group, Inc. due 2009 - 144A 500,000
1996 1,500 People's Choice T.V. Corp. (Warrants) 15
1997 2,560 Powertel, Inc. (Warrants) 18,824
1999 500 R&B Falcon Corp. 13.875% Cumm. Preferred (with warrants) - 144A 500,000
1999 3,000,000 Telecorp PCS, Inc. due 2009 - 144A 1,746,223
1999 1,500,000 Telewest Communications plc due 2009 - 144A 990,356
</TABLE>
The aggregate value of these securities at June 30, 1999, was $8,118,392,
which represents 11.38% of total net assets.
(f) Securities issued within the terms of a private placement memorandum,
exempt from registration under Section 144A of the Securities Act of 1933,
as amended, and may be sold only to dealers in that program or to other
"accredited investors". Pursuant to guidelines adopted by the Board of
Directors, these issues are determined to be liquid. The aggregate value of
these securities at June 30, 1999, was $6,531,875, which represents 9.15%
of total net assets.
(g) The interest rates disclosed for these securities represents the effective
yield on the date of acquisition.
* Moody's Rating
36
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL ASSET ALLOCATION SERIES
Schedule of Investments
June 30, 1999 (Unaudited)
COMMON STOCKS-57.01%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
------------- ------------ ------------
<C> <S> <C> <C>
AUSTRALIA - 0.52%
125,400 CSR Limited -- BUILDING MATERIALS............ $ 347,548 $ 358,570
------------ ------------
BELGIUM - 0.58%
4,740 Delhaize-Le Lion
S.A. -- RETAIL-MISCELLANEOUS............... 332,792 403,534
------------ ------------
BERMUDA - 0.40%
10,300 Terra Nova (Burmuda) Holdings -- INSURANCE... 202,333 277,456
------------ ------------
CANADA - 1.24%
15,761 BCT.Telus Communications,
Inc. -- TELECOMMUNICATIONS................. 444,850 376,954
5,254 BCT.Telus Communications, Inc., A
Shares -- TELECOMMUNICATIONS............... 141,289 123,698
7,030 Potash Corp. of Saskatchewan -- CHEMICALS.... 493,993 361,688
------------ ------------
1,080,132 862,340
------------ ------------
DENMARK - 0.27%
4,200 Danisco A/S -- DIVERSIFIED COMPANIES......... 204,916 189,794
------------ ------------
FRANCE - 5.47%
951 Bongrain S.A. -- FOOD........................ 442,561 358,960
5,683 Elf Aquitaine S.A. -- OIL-CRUDE PETROLEUM AND
GAS........................................ 608,679 834,003
2,300 France Telecom S.A. -- TELECOMMUNICATIONS.... 72,517 173,748
3,090 Groupe Danone -- FOOD........................ 733,254 796,679
5,010 Michelin (C.G.D.E.) Class B -- RUBBER AND
PLASTIC.................................... 239,751 204,968
5,554 Pernod Ricard -- BEVERAGE.................... 345,181 372,310
12,500 Rhone-Poulenc S.A. -- BUILDING MATERIALS..... 580,897 571,211
9,650 Scor S.A. -- INSURANCE....................... 558,174 478,693
------------ ------------
3,581,014 3,790,572
------------ ------------
GERMANY - 2.62%
14,880 Basf AG -- CHEMICALS......................... 540,834 653,729
7,830 Bayer AG -- CHEMICALS........................ 300,751 325,829
10,250 Veba AG -- UTILITIES-ELECTRIC................ 554,564 604,651
250 Viag AG -- ELECTRIC-PRODUCTS................. 102,693 116,021
1,800 Volkswagen AG -- AUTOMOBILE MANUFACTURERS.... 60,621 116,151
------------ ------------
1,559,463 1,816,381
------------ ------------
IRELAND - 1.50%
42,662 Bank of Ireland -- BANKS..................... 639,620 716,862
59,188 Green Property plc -- REAL ESTATE............ 191,834 326,567
------------ ------------
831,454 1,043,429
------------ ------------
ITALY - 1.68%
54,800 Mediaset S.p.A. -- BROADCASTING.............. 265,729 487,161
125,493 Telecom Italia S.p.A -- TELEPHONE SERVICES... 529,416 680,754
------------ ------------
795,145 1,167,915
------------ ------------
JAPAN - 5.22%
27,000 Daiichi Pharmaceutical Co.,
Ltd. -- CHEMICALS.......................... 414,745 418,919
18,000 Fuji Photo Film -- PHOTOGRAPHIC.............. 580,763 681,097
38,000 Hitachi Ltd. -- ELECTRONIC-CONTROLS AND
EQUIPMENT.................................. 242,700 356,329
34,000 Kao Corp. -- HOUSEHOLD PRODUCTS.............. 539,788 955,056
102 Nippon Telegraph & Telephone
Corp. -- TELEPHONE SERVICES................ 797,011 1,188,202
1,000 Pioneer Electronic
Corp. -- ELECTRONIC-CONTROLS AND
EQUIPMENT.................................. 16,394 19,456
------------ ------------
2,591,401 3,619,059
------------ ------------
NETHERLANDS - 2.60%
18,672 ABN-AMRO Holding NV -- BANKS................. 207,424 404,385
7,650 Benckiser NV Class B -- MISCELLANEOUS........ 341,663 408,279
10,828 ING Groep N.V. -- INSURANCE.................. 316,828 586,263
4,094 Koninklijke (Royal) Philips Electronics
NV -- ELECTRIC-PRODUCTS.................... 164,817 403,848
------------ ------------
1,030,732 1,802,775
------------ ------------
</TABLE>
37
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL ASSET ALLOCATION SERIES (CONTINUED)
Schedule of Investments
June 30, 1999 (Unaudited)
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------------- ------------ ------------
<C> <S> <C> <C>
PORTUGAL - 0.43%
11,540 Cimpor Cimentos De Portugal -- BUILDING
MATERIALS.................................. $ 311,978 $ 297,530
------------ ------------
SPAIN - 2.10%
41,800 Iberdrola S.A. -- UTILITIES-ELECTRIC......... 479,608 636,710
17,008 Telefonica S.A. -- TELECOMMUNICATIONS........ 496,198 819,313
------------ ------------
975,806 1,456,023
------------ ------------
SWEDEN - 0.53%
63,200 Nordbanken Holding AB -- BANKS............... 308,564 369,447
------------ ------------
SWITZERLAND - 5.31%
775 Compagnie Financiere Richemont
AG -- TOBACCO.............................. 1,049,774 1,490,576
690 Forbo Holding AG -- HOUSEHOLD PRODUCTS....... 288,071 274,296
432 Holderbank Financiere Glaris AG -- BUILDING
MATERIALS.................................. 350,405 509,447
659 Nestle S.A. -- FOOD.......................... 1,039,061 1,187,353
590 Swisscom AG -- TELEPHONE SERVICES............ 158,770 222,019
------------ ------------
2,886,081 3,683,691
------------ ------------
UNITED KINGDOM - 6.97%
78,700 Allied Domecq plc -- RETAIL-DEPARTMENT
STORES..................................... 642,731 760,456
46,503 Blue Circle Industries plc -- BUILDING
MATERIALS.................................. 226,284 309,521
23,308 Burmah Castrol plc -- OIL-CRUDE PETROLEUM AND
GAS........................................ 361,754 443,830
37,500 Imperial Tobacco Group plc -- TOBACCO........ 285,314 409,641
55,156 Invensys plc -- DIVERSIFIED COMPANIES........ 284,049 261,260
50,000 Matthews (Bernard) plc -- FOOD............... 74,479 104,824
17,098 Premier Farnell plc -- ELECTRONIC
COMPONENTS................................. 118,611 64,010
75,467 Reckitt & Colman plc -- HOUSEHOLD PRODUCTS... 918,074 785,122
63,122 Royal & Sun Alliance Insurance Group
plc -- INSURANCE........................... 573,270 567,641
85,900 Sainsbury (J) plc -- FOOD.................... 551,723 540,263
36,300 Wolseley plc -- BUILDING MATERIALS........... 240,998 272,938
36,850 WPP Group plc -- ADVERTISING-PUBLIC
RELATIONS.................................. 156,045 311,635
------------ ------------
4,433,332 4,831,141
------------ ------------
UNITED STATES - 19.57%
25,083 Albertson's, Inc. -- RETAIL-GROCERY.......... 1,002,640 1,293,342
3,860 Alcoa, Inc. -- METALS-MINING AND
MISCELLANEOUS.............................. 119,507 238,838
15,400 BJ's Wholesale Club, Inc.
(a) -- RETAIL-MISCELLANEOUS................ 145,912 462,963
7,700 Boise Cascade Corp. -- PAPER................. 211,120 331,100
7,300 Borg-Warner Automotive, Inc. -- AUTOMOBILE
AND MOTOR VEHICLE PARTS.................... 280,449 401,500
21,610 Cadiz, Inc. -- LAND DEVELOPMENT.............. 226,757 203,944
4,850 Chase Manhattan Corp. -- BANKS............... 205,240 420,131
24,130 Comsat Corp. -- TELECOMMUNICATIONS........... 472,432 784,225
30,250 Data General Corp.
(a) -- COMPUTER-SOFTWARE................... 504,630 440,516
21,200 Enhance Financial Services Group,
Inc. -- INSURANCE.......................... 313,228 418,700
11,600 Finova Group, Inc. -- FINANCIAL SERVICES..... 301,775 610,450
22,200 GenRad, Inc. (a) -- ELECTRONIC-CONTROLS AND
EQUIPMENT.................................. 228,349 462,038
4,600 Georgia-Pacific Group -- PAPER............... 111,766 217,925
7,800 Goodrich (B.F.) Co. -- AEROSPACE AND
EQUIPMENT.................................. 335,915 331,500
17,100 Houghton Mifflin Co. -- PUBLISHING........... 457,588 804,769
8,600 IBP, Inc. -- FOOD............................ 197,076 204,250
39,300 Intelidata Technologies Corp.
(a) -- TELECOMMUNICATIONS.................. 311,431 98,250
12,150 MBIA, Inc. -- INSURANCE...................... 595,296 786,713
17,600 Mellon Bank Corp. -- BANKS................... 362,094 640,200
1,300 NCR Corp. (a) -- COMPUTER-COMMUNICATION
EQUIPMENT.................................. 50,596 63,456
12,560 Noble Drilling Corp. (a) -- OIL-OFFSHORE
DRILLING................................... 162,056 247,275
26,480 Ocean Energy, Inc. -- OIL-CRUDE PETROLEUM AND
GAS........................................ 385,488 254,870
7,550 Pharmacia and Upjohn, Inc. -- DRUGS.......... 253,548 428,934
35,550 Philip Morris Companies, Inc. -- TOBACCO..... 1,579,705 1,428,666
8,300 Rite Aid Corp. -- RETAIL-SPECIALTY........... 220,179 204,388
100 Sears, Roebuck & Co. -- RETAIL-DEPARTMENT
STORES..................................... 4,513 4,456
</TABLE>
38
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------------- ------------ ------------
<C> <S> <C> <C>
8,400 Tenneco, Inc. (with rights) -- AUTOMOBILE AND
MOTOR VEHICLE PARTS........................ $ 337,981 $ 200,550
12,100 Tupperware Corp. -- RETAIL-MISCELLANEOUS..... 317,742 308,550
6,000 U.S. Bancorp -- BANKS........................ 215,990 204,000
22,250 Unicom Corp. -- UTILITIES-ELECTRIC........... 819,628 858,016
7,100 UST Corp. -- BANKS........................... 106,134 214,775
------------ ------------
10,836,765 13,569,290
------------ ------------
TOTAL COMMON STOCKS.......................... $32,309,456 $39,538,947
------------ ------------
------------ ------------
</TABLE>
PREFERRED STOCKS-0.29%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
------------- ------------ ------------
<C> <S> <C> <C>
GERMANY - 0.29%
5,400 Volkswagen AG Preferred -- AUTOMOBILE
MANUFACTURERS.............................. $ 198,620 $ 202,712
------------ ------------
</TABLE>
BONDS-INVESTMENT GRADE - 27.78%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
Principal & Poor's Market
Amount (g) Rating Cost (b)(g) Value (c)(g)
------------- --------- ------------ ------------
<C> <S> <C> <C> <C>
AUSTRALIA - 0.86%
$ 800,000 Australian Government (Australian dollar),
10.00% 10-15-2002.......................... AAA $ 592,671 $ 596,654
------------ ------------
BELGIUM - 0.17%
100,000 Belgium Kingdom (US Dollar), 9.20%
6-28-2010.................................. AA+ 127,767 117,853
------------ ------------
CANADA - 1.80%
800,000 Canadian Government (Canadian Dollar), 5.25%
9-1-2003................................... Aa1* 529,738 537,369
900,000 Canadian Government (Canadian Dollar), 8.75%
12-1-2005.................................. AAA 729,716 713,421
------------ ------------
1,259,454 1,250,790
------------ ------------
DENMARK - 2.02%
5,800,000 Kingdom of Denmark (Danish Krone), 7.00%
12-15-2004................................. AAA 923,990 906,822
3,000,000 Kingdom of Denmark (Danish Krone), 8.00%
3-15-2006.................................. AAA 509,338 493,464
------------ ------------
1,433,328 1,400,286
------------ ------------
GERMANY - 10.30%
945,889 Bundesrepublik Deutschland (European Monetary
Unit), 6.25% 1-4-2024...................... AAA 1,136,352 1,083,497
1,200,000 Bundesrepublik Deutschland (European Monetary
Unit), 6.50% 10-14-2005.................... NR 1,566,256 1,389,324
1,000,000 Bundesrepublik Deutschland (European Monetary
Unit), 6.50% 7-4-2027...................... NR 1,379,079 1,193,730
700,000 Bundesrepublik Deutschland (European Monetary
Unit), 8.375% 5-21-2001.................... Aaa* 890,303 788,105
250,000 Deutsch Ausgleichsbank (European Monetary
Unit), 4.00% 7-4-2009...................... NR 267,074 242,098
260,000 Deutsche Ausgleichsbank (US Dollar), 5.125%
9-22-2003.................................. AAA 259,756 248,768
920,325 German Government (European Monetary Unit),
6.50% 7-15-2003............................ Aaa* 1,142,697 1,042,191
800,000 German Unity Fund (European Monetary Unit),
8.00% 1-21-2002............................ NR 1,078,391 913,177
230,081 Kredit Fuer Wiederaufbau (European Monetary
Unit), 5.00% 1-4-2009...................... AAA 275,588 242,739
------------ ------------
7,995,496 7,143,629
------------ ------------
ITALY - 0.38%
200,000 Italian Government BTP (European Monetary
Unit), 9.50% 2-1-2006...................... AAA 272,020 264,816
------------ ------------
JAPAN - 3.87%
43,000,000 Int'l Bank Reconstruction & Development
(Japanese Yen), 4.75% 12-20-2004........... AAA 419,498 422,095
56,000,000 Japan Development Bank (Japanese Yen), 6.50%
9-20-2001.................................. AAA 592,400 522,710
230,000,000 Japan JGB #207A (Japanese Yen), 0.90%
12-22-2008................................. NR 1,859,541 1,738,913
------------ ------------
2,871,439 2,683,718
------------ ------------
</TABLE>
39
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL ASSET ALLOCATION SERIES (CONTINUED)
Schedule of Investments
June 30, 1999 (Unaudited)
BONDS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount (g) Rating Cost (b)(g) Value (c)(g)
------------- --------- ------------ ------------
<C> <S> <C> <C> <C>
SPAIN - 0.18%
$ 130,000 Instituto De Credito Oficial (US Dollar),
6.00% 5-19-2008............................ AA $ 130,498 $ 125,376
------------ ------------
SWEDEN - 1.76%
6,000,000 Kingdom of Sweden (Swedish Krona), 13.00%
6-15-2001.................................. Aa1* 823,662 823,020
3,200,000 Swedish Government (Swedish Krona), 6.00%
2-9-2005................................... Aa1* 407,324 400,413
------------ ------------
1,230,986 1,223,433
------------ ------------
UNITED KINGDOM - 3.39%
130,000 Halifax plc (US Dollar), 6.00% 2-26-2008..... AA 129,273 122,270
230,000 Scottish Power plc (German Deutschmark),
5.25% 8-4-2008............................. A+ 128,573 121,931
150,000 United Kingdom Treasury (British Pound),
8.00% 6-10-2003............................ Aaa* 261,646 256,897
980,000 United Kingdom Treasury (British Pound),
8.50% 7-16-2007............................ AAA 1,913,874 1,846,932
------------ ------------
2,433,366 2,348,030
------------ ------------
UNITED STATES - 3.05%
70,000 Ahold Finance USA, Inc., 6.875% 5-1-2029..... A 69,762 64,925
100,000 Ameritech Capital Funding, 6.25% 5-18-2009... AA+ 99,198 93,860
150,000 Associates Corp. NA, 6.00% 7-15-2005......... AA- 149,650 143,891
190,000 AT&T Corp., 6.50% 3-15-2029.................. AA- 188,104 170,883
230,000 Citicorp, 5.50% 6-30-2010.................... A+ 127,581 121,888
150,000 Conoco Inc., 6.95% 4-15-2029................. A- 150,000 140,105
90,000 Dresdner Funding Trust II (European Monetary
Unit), 5.79% 6-30-2011 (e)................. A+ 96,075 90,237
80,000 Florida Windstorm, 7.125% 2-25-2019 (e)...... AAA 79,563 76,752
160,000 Ford Motor Co., 6.375% Deb 2-1-2029.......... A 158,116 139,015
130,000 General Electric Capital Corp., 8.125%
2-23-2007.................................. AAA 146,195 139,184
80,000 General Motors, 6.75% 5-1-2028............... A 79,905 73,114
150,000 Goldman Sachs Group, 6.65% 5-15-2009......... A+ 149,701 144,582
100,000 Household Finance Corp., 6.375% 8-1-2010..... A 98,789 92,967
200,000 Lucent Technologies, Inc., 6.45% Bond
3-15-2029.................................. A 198,926 182,750
120,000 Merrill Lynch & Co., 6.875% 11-15-2018....... AA- 119,419 111,796
100,000 Met Life Insurance, 7.45% Note 11-1-2023
(e)........................................ A+ 101,359 97,415
150,000 Monsanto Co., 6.60% 12-1-2028 (f)............ A 149,463 133,302
100,000 Nationwide Mutual Insurance, 7.50% Note
2-15-2024 (e).............................. A+ 101,922 95,001
------------ ------------
2,263,728 2,111,667
------------ ------------
TOTAL BONDS - INVESTMENT GRADE............... $20,610,753 $19,266,252
------------ ------------
------------ ------------
</TABLE>
U.S. GOVERNMENT SECURITIES-8.88%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Cost (b)(g) Value (c)(g)
------------- ------------ ------------
<C> <S> <C> <C>
FEDERAL HOME LOAN MORTGAGE CORP. - 0.93%
NOTES:
$ 650,000 5.75% 2003 (US Dollar)....................... $ 652,303 $ 644,838
------------ ------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 1.86%
NOTES:
50,000,000 2.00% 1999 (Japanese Yen).................... 348,336 416,887
650,000 5.75% 2005 (US Dollar)....................... 650,818 637,833
100,000 6.375% 2007 (Australian Dollar).............. 64,257 65,121
250,000 6.50% 2002 (Australian Dollar)............... 183,679 167,944
------------ ------------
TOTAL FEDERAL NATIONAL MORTGAGE
ASSOCIATION................................ 1,247,090 1,287,785
------------ ------------
OTHER DIRECT FEDERAL OBLIGATIONS - 0.24%
TENNESSEE VALLEY AUTHORITY:
180,000 5.375% 2008 (US Dollar)...................... 179,281 165,968
------------ ------------
</TABLE>
40
<PAGE>
U.S. GOVERNMENT SECURITIES-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Cost (b)(g) Value (c)(g)
------------- ------------ ------------
<C> <S> <C> <C>
U.S. TREASURY SECURITIES - 5.85%
BONDS:
$ 370,000 6.25% 2023................................... $ 396,075 $ 370,347
850,000 8.125% 2019.................................. 1,047,810 1,024,250
------------ ------------
1,443,885 1,394,597
------------ ------------
NOTES:
700,000 6.25% 2007................................... 726,272 713,125
400,000 7.25% 2004................................... 433,328 424,375
150,000 7.50% 2005................................... 163,846 161,531
1,250,000 7.875% 2004.................................. 1,434,835 1,364,844
------------ ------------
2,758,281 2,663,875
------------ ------------
TOTAL U.S. TREASURY SECURITIES............... 4,202,166 4,058,472
------------ ------------
TOTAL U.S. GOVERNMENT SECURITIES............. 6,280,840 6,157,063
------------ ------------
------------ ------------
TOTAL LONG-TERM INVESTMENTS.................. $59,399,669 $65,164,974
------------ ------------
------------ ------------
</TABLE>
SHORT-TERM INVESTMENTS-4.55%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
------------- ------------
<C> <S> <C>
BANKS - 4.55%
$ 3,156,752 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 4.80%........ $ 3,156,752
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$62,556,421) (b)........................... $68,321,726
------------
------------
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 1999, the cost of securities for federal income tax purposes
was $62,575,480 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 8,754,910
Unrealized depreciation..................................... (3,008,664)
- -------------------------------------------------------------------------
Net unrealized appreciation................................. $ 5,746,246
- -------------------------------------------------------------------------
</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 a private placement memorandum, exempt
from registration under Section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or to other
"accredited investors". These investments have been identified by portfolio
management as illiquid securities.
<TABLE>
<CAPTION>
Period Acquired Shares/Par Security Cost Basis
- ------------------------------ ---------- ---------------------------------------- ------------------
<S> <C> <C> <C>
1999 90,000 Dresdner Funding Trust II, 5.79%
6-30-2011 - 144A $ 96,075
1999 80,000 Florida Windstorm, 7.125% 2-25-2019 -
144A 79,563
1998 100,000 Met Life Insurance, 7.45% 11-1-2023 -
144A 101,359
1998 100,000 Nationwide Mutual Insurance, 7.50%
2-15-2024 - 144A 101,922
</TABLE>
The aggregate value of these securities at June 30, 1999, was $359,405,
which represents .52% of total net assets.
(f) Securities sold within the terms of a private placement memorandum, exempt
from registration under Section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or to other
"accredited investors". Pursuant to guidelines adopted by the Board of
Directors, these issues are deemed to be liquid. The aggregate value of
these securities at June 30, 1999, was $133,302, which represents .19% of
total net assets.
(g) Cost and market value are stated in U.S. dollars; principal amount is
stated in the currency indicated.
* Moody's Rating
41
<PAGE>
FORTIS SERIES FUND, INC.
ASSET ALLOCATION SERIES
Schedule of Investments
June 30, 1999 (Unaudited)
COMMON STOCKS-67.44%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
------------ ------------- -------------
<C> <S> <C> <C>
ADVERTISING-PUBLIC
RELATIONS - 1.69%
122,200 Interpublic Group of Companies, Inc.......... $ 6,696,015 $ 10,585,575
------------- -------------
AIRLINES - 0.20%
40,000 Southwest Airlines Co........................ 1,352,536 1,245,000
------------- -------------
APPAREL - 0.66%
65,000 Jones Apparel Group, Inc. (a)................ 2,065,700 2,230,312
72,000 Warnaco Group, Inc........................... 2,080,241 1,926,000
------------- -------------
4,145,941 4,156,312
------------- -------------
AUTOMOBILE AND MOTOR VEHICLE PARTS - 0.20%
250 Highwaymaster Communications, Inc. (Warrants)
(a)(e)..................................... 4,547 62
18,000 Johnson Controls, Inc........................ 1,291,997 1,247,625
------------- -------------
1,296,544 1,247,687
------------- -------------
BANKS - 1.75%
63,000 Bank One Corp................................ 2,294,316 3,752,437
72,000 KeyCorp...................................... 2,573,072 2,313,000
134,000 Mellon Bank Corp............................. 4,502,735 4,874,250
------------- -------------
9,370,123 10,939,687
------------- -------------
BROADCASTING - 2.34%
108,000 AT&T Corp. - Liberty Media Group (a)......... 3,424,484 3,969,000
108,000 Chancellor Media Corp. (a)................... 5,685,641 5,953,500
53,000 USA Networks, Inc. (a)....................... 1,952,271 2,126,625
59,000 Viacom, Inc. Class B (a)..................... 1,952,590 2,596,000
------------- -------------
13,014,986 14,645,125
------------- -------------
BROKERAGE AND
INVESTMENT - 0.43%
11,800 Merrill Lynch & Co., Inc..................... 1,029,252 943,262
16,000 Schwab (Charles), Corp....................... 1,849,715 1,758,000
------------- -------------
2,878,967 2,701,262
------------- -------------
BUILDING MATERIALS - 1.07%
46,200 Dayton Superior Corp. (a).................... 972,972 857,587
203,000 Masco Corp................................... 5,578,523 5,861,625
------------- -------------
6,551,495 6,719,212
------------- -------------
BUSINESS SERVICES - 3.80%
65,000 Automatic Data Processing, Inc............... 3,014,823 2,860,000
108,000 Ecolab, Inc.................................. 4,744,355 4,711,500
84,000 First Data Corp.............................. 3,813,881 4,110,750
153,000 Fiserv, Inc. (a)............................. 2,730,239 4,790,812
77,020 Tyco International Ltd....................... 6,097,993 7,297,645
------------- -------------
20,401,291 23,770,707
------------- -------------
CABLE TELEVISION - 0.37%
31,000 MediaOne Group, Inc. (a)..................... 2,375,973 2,305,625
------------- -------------
CHEMICALS - 0.86%
65,500 du Pont (E.I.) de Nemours & Co............... 3,913,125 4,474,469
18,000 Union Carbide Corp........................... 992,945 877,500
------------- -------------
4,906,070 5,351,969
------------- -------------
<CAPTION>
Market
Shares Cost (b) Value (c)
------------ ------------- -------------
<C> <S> <C> <C>
CHEMICALS-SPECIALTY - 0.89%
90,000 Engelhard Corp............................... $ 1,824,077 $ 2,036,250
63,000 Minerals Technologies, Inc................... 2,947,535 3,516,187
------------- -------------
4,771,612 5,552,437
------------- -------------
COMPUTER-COMMUNICATION EQUIPMENT - 3.72%
267,000 Cabletron Systems, Inc. (a).................. 3,676,728 3,471,000
74,000 Cisco Systems, Inc. (a)...................... 1,281,228 4,773,000
63,000 Equant NV NY Shares (a)...................... 4,662,000 5,929,875
186,000 NCR Corp. (a)................................ 8,947,309 9,079,125
------------- -------------
18,567,265 23,253,000
------------- -------------
COMPUTER-SOFTWARE - 3.41%
126,000 Cambridge Technology Partners, Inc. (a)...... 2,465,138 2,212,875
54,000 Citrix Systems, Inc. (a)..................... 2,789,662 3,051,000
106,000 Electronic Data Systems Corp................. 5,387,760 5,995,625
25,000 Lycos, Inc. (a).............................. 2,442,187 2,296,875
61,000 Microsoft Corp. (a).......................... 1,844,021 5,501,438
85,000 Novell, Inc. (a)............................. 2,151,914 2,252,500
------------- -------------
17,080,682 21,310,313
------------- -------------
CONSUMER GOODS - 1.15%
46,000 Colgate-Palmolive Co......................... 4,041,806 4,542,500
46,000 Kimberly-Clark Corp.......................... 2,407,495 2,622,000
------------- -------------
6,449,301 7,164,500
------------- -------------
DIVERSIFIED COMPANIES - 0.50%
36,000 Minnesota Mining and Manufacturing Co........ 3,036,485 3,129,750
------------- -------------
DRUGS - 2.61%
65,100 Biovail Corp. International (a).............. 3,136,142 3,324,169
70,000 Bristol-Myers Squibb Co...................... 4,838,072 4,930,625
67,500 Forest Laboratories, Inc. (a)................ 2,077,656 3,121,875
87,000 Pharmacia and Upjohn, Inc.................... 4,306,117 4,942,688
------------- -------------
14,357,987 16,319,357
------------- -------------
ELECTRIC-PRODUCTS - 0.71%
28,400 Honeywell, Inc............................... 2,694,467 3,290,850
36,000 Molex, Inc. Class A.......................... 985,500 1,134,000
------------- -------------
3,679,967 4,424,850
------------- -------------
ELECTRICAL EQUIPMENT - 1.48%
82,000 General Electric Co.......................... 5,546,333 9,266,000
------------- -------------
ELECTRONIC-CONTROLS AND EQUIPMENT - 0.40%
25,000 Hewlett-Packard Co........................... 2,341,590 2,512,500
------------- -------------
ELECTRONIC-SEMICONDUCTOR AND CAPACITOR -
2.32%
82,000 Motorola, Inc................................ 6,227,484 7,769,500
26,000 Texas Instruments, Inc....................... 1,423,261 3,770,000
18,000 Uniphase Corp. (a)........................... 2,549,701 2,988,000
------------- -------------
10,200,446 14,527,500
------------- -------------
FINANCIAL SERVICES - 2.94%
29,500 American Express Co.......................... 3,727,051 3,838,688
65,000 J.P. Morgan & Co., Inc....................... 9,311,958 9,132,500
</TABLE>
42
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------------ ------------- -------------
<C> <S> <C> <C>
72,000 Marsh & McLennan Companies, Inc.............. $ 5,357,425 $ 5,436,000
------------- -------------
18,396,434 18,407,188
------------- -------------
FOOD - 0.68%
54,000 Campbell Soup Co............................. 2,420,336 2,504,250
34,000 Groupe Danone ADR............................ 1,054,000 1,778,625
------------- -------------
3,474,336 4,282,875
------------- -------------
FOREST PRODUCTS - 0.79%
72,000 Weyerhaeuser Co.............................. 4,910,085 4,950,000
------------- -------------
HEALTH CARE SERVICES - 1.49%
152,000 Foundation Health Systems, Inc. (a).......... 2,642,765 2,280,000
360,000 MedPartners, Inc. (a)........................ 2,535,732 2,722,500
58,000 Oxford Health Plans, Inc. (a)................ 1,186,730 902,625
55,000 United HealthCare Corp....................... 2,977,431 3,444,375
------------- -------------
9,342,658 9,349,500
------------- -------------
HOTEL AND GAMING - 0.96%
134,100 Sun International Hotels Ltd. (a)............ 5,560,738 6,000,975
------------- -------------
INSURANCE - 3.17%
100,000 Ace Ltd...................................... 3,325,649 2,825,000
61,000 Allstate Corp................................ 2,401,084 2,188,375
92,000 American International Group, Inc. 4,389,089 10,769,750
97,500 Aon Corp..................................... 4,465,873 4,021,875
------------- -------------
14,581,695 19,805,000
------------- -------------
MACHINERY-TOOLS - 0.20%
22,000 Danaher Corp................................. 1,500,528 1,278,750
------------- -------------
MEDIA - 2.96%
70,000 CBS Corp. (a)................................ 2,850,068 3,040,625
65,000 Gannett Co., Inc............................. 4,485,688 4,639,375
72,000 News Corp. Ltd ADR........................... 2,602,391 2,542,500
112,500 Time Warner, Inc............................. 3,123,012 8,268,750
------------- -------------
13,061,159 18,491,250
------------- -------------
MEDICAL TECHNOLOGY - 0.36%
29,000 Medtronic, Inc. (with rights)................ 799,065 2,258,375
------------- -------------
METALS-MINING AND
MISCELLANEOUS - 0.45%
140,900 Newmont Mining Corp.......................... 3,058,737 2,800,388
------------- -------------
NATURAL GAS
TRANSMISSIONS - 2.24%
81,000 Enron Corp................................... 4,499,565 6,621,750
174,000 Williams Companies, Inc...................... 6,173,924 7,405,875
------------- -------------
10,673,489 14,027,625
------------- -------------
OIL AND GAS FIELD
SERVICES - 0.85%
84,000 Schlumberger Ltd............................. 4,351,098 5,349,750
------------- -------------
OIL-CRUDE PETROLEUM AND
GAS - 3.86%
105,000 Burlington Resources, Inc.................... 4,785,817 4,541,250
76,000 Conoco, Inc. Class A......................... 1,962,715 2,118,500
134,000 Enron Oil and Gas Co......................... 2,685,772 2,713,500
54,000 Exxon Corp................................... 3,942,007 4,164,750
52,000 Phillips Petroleum Co........................ 2,747,309 2,616,250
<CAPTION>
Market
Shares Cost (b) Value (c)
------------ ------------- -------------
<C> <S> <C> <C>
93,000 Royal Dutch Petroleum Co. NY Shares.......... $ 4,468,845 $ 5,603,250
38,000 Texaco, Inc.................................. 2,232,903 2,375,000
------------- -------------
22,825,368 24,132,500
------------- -------------
PHOTOGRAPHIC - 0.64%
144,000 Polaroid Corp................................ 3,918,464 3,978,000
------------- -------------
PRECISION INSTRUMENTS-TEST, RESEARCH - 0.70%
38,000 PE Corp - PE Biosystems Group................ 3,721,078 4,360,500
------------- -------------
PUBLISHING - 0.98%
155,000 Reader's Digest Association, Inc. Class A.... 4,509,619 6,161,250
------------- -------------
RESTAURANTS AND
FRANCHISING - 0.28%
42,000 McDonald's Corp.............................. 1,499,106 1,735,125
------------- -------------
RETAIL-DEPARTMENT STORES - 0.52%
42,000 Kohl's Corp. (a)............................. 411,421 3,241,875
------------- -------------
RETAIL-DISCOUNT STORES - 0.82%
106,000 Wal-Mart Stores, Inc......................... 2,801,664 5,114,500
------------- -------------
RETAIL-SPECIALTY - 2.12%
46,000 Home Depot, Inc.............................. 838,949 2,964,125
134,000 Tandy Corp. (with rights).................... 5,271,458 6,549,250
39,000 Tiffany & Co................................. 1,873,836 3,763,500
------------- -------------
7,984,243 13,276,875
------------- -------------
TELECOMMUNICATION
EQUIPMENT - 1.75%
32,000 Associated Group, Inc. Class A (a) 1,995,454 2,084,000
83,000 CIENA Corp. (a).............................. 2,029,779 2,505,563
90,000 Nextel Communications, Inc. (a).............. 3,528,225 4,516,875
20,000 Nokia Oyj Corp. ADR Class A.................. 1,630,270 1,831,250
------------- -------------
9,183,728 10,937,688
------------- -------------
TELECOMMUNICATIONS - 0.88%
47,000 Global TeleSystems Group, Inc. (a) 3,364,177 3,807,000
1,000 Hyperion Telecom
(Warrants) (a)(e).......................... 4,022 76,625
50,000 Qwest Communications International, Inc.
(a)........................................ 1,399,132 1,653,125
------------- -------------
4,767,331 5,536,750
------------- -------------
TELEPHONE SERVICES - 4.70%
52,000 ALLTEL Corp.................................. 3,070,378 3,718,000
140,500 AT&T Corp.................................... 5,599,665 7,841,656
32,700 Bell Atlantic Corp........................... 1,912,433 2,137,763
100,000 Frontier Corp................................ 3,547,528 5,900,000
66,000 MCI WorldCom, Inc. (a)....................... 2,175,004 5,692,500
19,000 Vodafone AirTouch plc ADR.................... 1,057,763 4,090,939
------------- -------------
17,362,771 29,380,858
------------- -------------
UTILITIES-ELECTRIC - 2.54%
138,000 AES Corp. (a)................................ 5,327,103 8,021,250
30,000 Montana Power Co............................. 2,225,037 2,115,000
195,000 Potomac Electric Power Co.................... 5,813,473 5,740,313
------------- -------------
13,365,613 15,876,563
------------- -------------
TOTAL COMMON STOCKS.......................... $ 341,082,037 $ 421,862,528
------------- -------------
------------- -------------
</TABLE>
43
<PAGE>
FORTIS SERIES FUND, INC.
ASSET ALLOCATION SERIES (CONTINUED)
Schedule of Investments
June 30, 1999 (Unaudited)
ASSET BACKED SECURITIES - 4.30%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
------------ ------------- ------------- -------------
<C> <S> <C> <C> <C>
COMMERCIAL LOANS - 2.65%
$ 1,560,370 DLJ Mortgage Acceptance Corp., 7.28% Ser
1996-CF1 Class A-1A 3-13-2028 (e).......... AAA $ 1,571,737 $ 1,581,949
2,510,000 GMAC Commercial Mortgage Securities, Inc.,
7.085% Ser 1997-C1 Class E 12-15-2010...... Baa2* 2,521,379 2,413,390
1,815,511 GS Mortgage Securities Corp. II Protective
Life, 7.02% Ser 1996-PL Class A1
2-15-2027.................................. Aaa* 1,785,003 1,812,915
846,382 J.P. Morgan Commercial Mortgage Finance
Corp., 6.47% Ser 1996-C2 Class A
11-25-2027................................. AAA 852,301 837,343
860,000 J.P. Morgan Commercial Mortgage Finance
Corp., 7.46% Variable Rate Ser 1997-C4
Class B 12-26-2028 AA 866,319 890,375
977,085 Merrill Lynch Mortgage Investors, Inc., 6.76%
Variable Rate Ser 1995-C3 Class A1
12-26-2025................................. AAA 986,164 981,902
440,749 Merrill Lynch Mortgage Investors, Inc., 7.18%
Variable Rate Ser 1995-C2 Class A1
6-15-2021.................................. Aaa* 446,889 440,938
1,600,000 Merrill Lynch Mortgage Investors, Inc., 7.42%
Ser 1996-C1 Class B 4-25-2028.............. AA 1,602,430 1,628,752
1,200,000 Midland Realty Acceptance Corp., 7.7398%
Variable Rate Ser 1996-C1 Class B
8-25-2028.................................. AA 1,211,729 1,274,136
1,000,000 Mortgage Capital Funding, Inc., 7.90% Ser
1996-MC1 Class B 2-15-2006................. AA+ 1,007,888 1,058,520
1,870,000 Nationslink Funding Corp., 7.52% Ser 1996-1
Class A2 7-20-2005......................... AAA 1,871,721 1,906,914
1,691,843 Nationslink Funding Corp., 7.53% Ser 1996-1
Class A1 9-20-2002......................... AAA 1,695,279 1,719,116
------------- -------------
16,418,839 16,546,250
------------- -------------
HOUSING - 0.58%
631,004 Green Tree Recreational, Equipment & Consumer
Trust, 6.71% Ser 1998-A Class A1H
5-15-2029.................................. AAA 628,376 639,245
500,000 Money Store Home Improvement Trust, 7.41% Ser
1997-1 Class M1 5-15-2017.................. AA 501,935 504,575
2,500,000 Money Store Residential Trust, 7.085% Ser
1997-I Class M1 7-15-2016.................. AA 2,499,628 2,461,875
------------- -------------
3,629,939 3,605,695
------------- -------------
MANUFACTURED HOMES - 0.24%
1,500,000 Green Tree Financial Corp., 7.54% Ser 1997-2
Class M1 4-15-2028......................... Aa3* 1,542,351 1,503,855
------------- -------------
MISCELLANEOUS - 0.02%
139,348 Fifth Third Auto Grantor Trust, 6.70% Ser
1996-B Class B 3-15-2002................... A 139,295 140,000
------------- -------------
MULTI-FAMILY LOANS - 0.55%
1,500,000 DLJ Mortgage Acceptance Corp., 7.14%
Multifamily Mtg Pass Thru Certificate Ser
1997-CF2 Class B1 10-15-2007 (e)........... BBB 1,513,308 1,438,590
1,500,000 DLJ Mortgage Acceptance Corp., 8.80%
Multifamily Mtg Pass Thru Certificate Ser
1993-12 Class B1 9-18-2003................. NR 1,473,750 1,513,560
633,997 Fund America Structured Transactions, L.P.,
Collateralized Note, 8.34% Ser 1996-1 Class
A Principal Only 1-1-2033 (f)(h)........... Baa3* 469,070 512,745
------------- -------------
3,456,128 3,464,895
------------- -------------
WHOLE LOAN RESIDENTIAL - 0.26%
798,310 Blackrock Capital Finance L.P., 7.75% Ser
97-R1 Class A1 3-25-2037 (e)............... Aaa* 805,598 794,319
818,267 Mid-State Trust, 7.54% Ser 6 Class A3
7-1-2035................................... AA 817,761 826,221
------------- -------------
1,623,359 1,620,540
------------- -------------
TOTAL ASSET BACKED SECURITIES................ $ 26,809,911 $ 26,881,235
------------- -------------
------------- -------------
</TABLE>
CORPORATE BONDS-INVESTMENT GRADE - 16.18%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
------------ ------------- ------------- -------------
<C> <S> <C> <C> <C>
AEROSPACE AND EQUIPMENT - 0.47%
$ 1,500,000 Lockheed Martin Corp., 7.65% Deb 5-1-2016.... BBB+ $ 1,508,211 $ 1,488,958
1,500,000 Raytheon Co., 5.70% Note 11-1-2003........... BBB 1,505,823 1,454,922
------------- -------------
3,014,034 2,943,880
------------- -------------
AGRICULTURE - 0.22%
1,500,000 Archer-Daniels-Midland, 6.625% 5-1-2029...... AA- 1,492,815 1,376,415
------------- -------------
AIR FREIGHT - 0.23%
1,458,931 Federal Express, 7.50% Pass Thru Certificate
Ser 1997-A 1-15-2018....................... AAA 1,458,931 1,450,207
------------- -------------
</TABLE>
44
<PAGE>
CORPORATE BONDS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
------------ ------------- ------------- -------------
<C> <S> <C> <C> <C>
AIRLINES - 0.27%
$ 1,750,000 Delta Air Lines, 6.65% Medium Term Note
3-15-2004.................................. BBB- $ 1,748,744 $ 1,704,657
------------- -------------
AUTOMOBILE AND MOTOR VEHICLE PARTS - 0.22%
1,500,000 Dana Corp., 7.00% 3-1-2029................... A- 1,482,182 1,368,160
------------- -------------
AUTOMOBILE MANUFACTURERS - 0.17%
1,250,000 Ford Motor Co., 6.375% Deb 2-1-2029.......... A 1,235,278 1,086,054
------------- -------------
BANKS - 2.26%
1,500,000 Bank Austria AG, 7.25% Sub Note 2-15-2017
(f)........................................ AA+ 1,497,317 1,451,578
1,750,000 Bank One Corp., 6.00% Sub Note 2-17-2009..... A 1,743,549 1,612,490
1,500,000 Bankamerica Corp., 5.75% Sr Note 3-1-2004.... A+ 1,495,830 1,434,465
1,500,000 Citigroup, Inc., 6.20% 3-15-2009............. AA- 1,495,553 1,409,043
1,500,000 Keycorp Capital II, 6.875% Bond 3-17-2029.... BBB 1,482,232 1,386,309
500,000 LB Baden-Wuerttemberg, 7.625% 2-1-2023....... AAA 564,360 524,193
1,500,000 Mellon Financial Co., 6.375% Sub Note
2-15-2010.................................. A 1,506,139 1,417,846
1,250,000 National City Corp., 6.875% Sub Note
5-15-2019.................................. A- 1,247,808 1,174,157
1,500,000 Providian National Bank, 6.75% Sr Note
3-15-2002.................................. BBB- 1,499,102 1,486,285
1,500,000 St. Paul Bancorp, Inc., 7.125% Sr Note
2-15-2004.................................. BBB- 1,495,044 1,501,474
750,000 Swiss Bank Corp., 7.375% Sub Note
6-15-2017.................................. AA 787,854 741,440
------------- -------------
14,814,788 14,139,280
------------- -------------
BEVERAGE - 0.45%
1,500,000 Coca-Cola Bottling Co., 6.375% 5-1-2009...... BBB 1,490,315 1,403,125
1,500,000 Pepsi Bottling Group, Inc., 7.00% 3-1-2029
(e)........................................ A- 1,489,832 1,402,180
------------- -------------
2,980,147 2,805,305
------------- -------------
BROKERAGE AND INVESTMENT - 1.10%
1,500,000 Bear Stearns Capital Trust, 7.00% Variable
Rate 1-15-2027............................. BBB 1,499,153 1,486,344
1,250,000 Goldman Sachs Group, 6.50% Note 2-25-2009
(e)........................................ A+ 1,250,000 1,185,857
1,000,000 Goldman Sachs Group, 6.65% 5-15-2009......... A+ 998,007 963,877
2,250,000 Lehman Brothers Holdings, Inc., 7.375% Note
5-15-2004.................................. A 2,243,372 2,260,235
1,000,000 Merrill Lynch & Co., 6.07% Medium Term Note
10-15-2001................................. AA- 1,009,195 992,496
------------- -------------
6,999,727 6,888,809
------------- -------------
CABLE TELEVISION - 0.75%
1,250,000 Comcast Cable Communications, 8.375% Note
5-1-2007................................... BBB- 1,408,826 1,334,546
1,000,000 Cox Communications, Inc., 6.40% Note
8-1-2008................................... A- 1,024,067 941,339
1,000,000 Time Warner, Inc., 6.875% 6-15-2018.......... BBB 1,013,026 930,251
1,500,000 Viacom, Inc., 7.625% 1-15-2016............... BBB- 1,628,890 1,510,966
------------- -------------
5,074,809 4,717,102
------------- -------------
CAPTIVE AUTO FINANCE - 0.31%
1,250,000 General Motors Acceptance Corp., 6.15% Bond
4-5-2007................................... A 1,245,883 1,196,138
750,000 Toyota Motor Credit, 5.625% Note
11-13-2003................................. AAA 748,914 727,410
------------- -------------
1,994,797 1,923,548
------------- -------------
CHEMICALS - 0.12%
750,000 Equistar Chemicals, L.P., 8.75% Sr Note
2-15-2009 (f).............................. BBB- 787,101 758,030
------------- -------------
CONSUMER FINANCE - 0.39%
2,500,000 Household Finance Corp., 6.00% 5-1-2004...... A 2,499,466 2,422,258
------------- -------------
CONSUMER GOODS - 0.05%
350,000 Pennzoil-Quaker State, 7.375% 4-1-2029....... BBB- 348,244 329,061
------------- -------------
DIVERSIFIED FINANCE - 0.47%
1,500,000 AT&T Capital Corp., 7.50% Medium Term Note
11-15-2000................................. BBB 1,499,025 1,508,939
1,500,000 Finova Capital Corp., 6.75% Sr Note
3-9-2009................................... A- 1,496,729 1,437,965
------------- -------------
2,995,754 2,946,904
------------- -------------
</TABLE>
45
<PAGE>
FORTIS SERIES FUND, INC.
ASSET ALLOCATION SERIES (CONTINUED)
Schedule of Investments
June 30, 1999 (Unaudited)
CORPORATE BONDS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
------------ ------------- ------------- -------------
<C> <S> <C> <C> <C>
ELECTRONIC-MISCELLANEOUS - 0.08%
$ 500,000 Sony Corp., 6.125% Bond 3-4-2003............. A+ $ 499,190 $ 494,868
------------- -------------
ENERGY - 0.11%
750,000 NGC Corp. Capital Trust, 8.316% Deb
6-1-2027................................... BBB- 750,000 694,567
------------- -------------
FINANCIAL SERVICES - 0.19%
1,250,000 Prudential Insurance Co., 6.375% Sr Note
7-23-2006 (e).............................. A+ 1,244,997 1,197,198
------------- -------------
FOOD - 0.51%
1,250,000 Ahold Finance USA, Inc., 6.25% 5-1-2009...... A 1,239,877 1,178,904
1,000,000 Fred Meyer, Inc., 7.45% Sr Note 3-1-2008..... BBB- 1,062,079 1,006,336
1,000,000 Safeway, Inc., 6.05% Note 11-15-2003......... BBB 998,473 975,965
------------- -------------
3,300,429 3,161,205
------------- -------------
FOOD SERVICE - 0.11%
750,000 Sysco Corp., 6.50% Deb 8-1-2028.............. AA- 753,737 686,292
------------- -------------
FOREIGN - GOVERNMENT - 1.02%
1,000,000 British Columbia (Province of), 6.50% Bond
1-15-2026.................................. AA- 1,023,408 933,810
1,000,000 Korea (Republic of), 8.875% Note 4-15-2008... BBB- 1,053,682 1,050,365
1,500,000 Ontario (Province of), 5.50% 10-1-2008....... AA- 1,491,629 1,362,615
1,500,000 Ontario (Province of), 7.375% 1-27-2003...... AA- 1,597,860 1,541,175
1,000,000 Poland (Republic of), 7.125% Yankee Bond
7-1-2004................................... BBB 996,114 1,003,750
500,000 Quebec (Province of), 5.75% 2-15-2009........ A+ 498,726 461,500
------------- -------------
6,661,419 6,353,215
------------- -------------
FOREIGN - GOVERNMENT AGENCIES - 0.08%
500,000 Korea Development Bank, 7.125% 4-22-2004..... BBB- 496,467 488,178
------------- -------------
FOREST PRODUCTS - 0.16%
1,000,000 Fort James Corp., 6.50% Sr Note 9-15-2002.... BBB- 999,168 997,041
------------- -------------
HOUSING - 0.19%
1,250,000 Masco Corp., 6.625% Deb 4-15-2018............ A- 1,248,291 1,162,856
------------- -------------
INDUSTRIAL - 0.22%
1,500,000 Tyco International Group S.A., 6.875% Yankee
Bond 1-15-2029............................. A- 1,513,436 1,370,085
------------- -------------
INSURANCE - 0.31%
500,000 American General Corp., 6.625% 2-15-2029..... AA- 476,636 451,842
1,500,000 Reliastar Financial Corp., 6.625% Note
9-15-2003.................................. A 1,545,505 1,489,193
------------- -------------
2,022,141 1,941,035
------------- -------------
LEASING - 0.39%
1,500,000 Comdisco, Inc., 5.95% 4-30-2002.............. BBB+ 1,499,859 1,472,741
1,000,000 Ryder System, Inc., 6.60% Note 11-15-2005.... BBB+ 999,685 952,487
------------- -------------
2,499,544 2,425,228
------------- -------------
MEDIA - 0.11%
750,000 Belo (A.H.) Corp., 7.25% Note 9-15-2027...... BBB- 745,654 695,583
------------- -------------
MISCELLANEOUS - 0.04%
250,000 New York (City of), 10.00% General Obligation
Taxable Bond Ser D 8-1-2005................ A- 250,136 277,300
------------- -------------
NATURAL GAS TRANSMISSIONS - 0.46%
1,000,000 CMS Panhandle Holding Co., 7.00% 7-15-2029
(f)........................................ BBB- 991,472 924,138
1,250,000 Tennessee Gas Pipeline, 7.50% Deb 4-1-2017... BBB 1,231,091 1,240,746
750,000 Trans-Canada Pipelines Ltd., 6.49% Bond
1-21-2009.................................. A- 755,221 718,937
------------- -------------
2,977,784 2,883,821
------------- -------------
NUCLEAR FUEL - 0.19%
1,250,000 USEC, Inc., 6.625% Sr Note 1-20-2006......... BBB+ 1,246,987 1,192,065
------------- -------------
OIL-CRUDE PETROLEUM AND GAS - 0.23%
1,500,000 Conoco, Inc., 6.35% 4-15-2009................ A- 1,500,000 1,437,039
------------- -------------
</TABLE>
46
<PAGE>
CORPORATE BONDS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
------------ ------------- ------------- -------------
<C> <S> <C> <C> <C>
OIL-EQUIPMENT WELLS AND SERVICES - 0.22%
$ 1,000,000 Petroleum Geo-Services ASA, 7.125% Sr Note
3-30-2028.................................. BBB $ 997,137 $ 919,166
500,000 Petroleum Geo-Services, 6.25% Bond
11-19-2003................................. BBB 498,042 483,648
------------- -------------
1,495,179 1,402,814
------------- -------------
PRINTING - 0.14%
1,000,000 Donnelley (R.R.) & Sons, 6.625% 4-15-2029.... A+ 989,873 906,896
------------- -------------
RAILROAD AND RAILROAD EQUIPMENT - 0.08%
500,000 CSX Corp., 7.90% Deb 5-1-2017................ BBB 499,724 514,409
------------- -------------
RETAIL-DEPARTMENT STORES - 0.49%
2,000,000 Dayton Hudson Corp., 5.875% 11-1-2008........ A- 1,943,430 1,860,680
1,250,000 Federated Department Stores, 6.30% Note
4-1-2009................................... BBB+ 1,246,658 1,173,875
------------- -------------
3,190,088 3,034,555
------------- -------------
SUPRA-NATIONAL - 0.20%
1,250,000 Corp Andina de Fomento, 7.10% Yankee Bond
2-1-2003................................... BBB+ 1,249,528 1,221,894
------------- -------------
TECHNOLOGY - 0.18%
1,250,000 Lucent Technologies, Inc., 6.45% Bond
3-15-2029.................................. A 1,243,285 1,142,190
------------- -------------
TELECOMMUNICATIONS - 1.33%
1,250,000 360 Communications Co., 7.50% Sr Note
3-1-2006................................... A 1,247,847 1,289,759
1,250,000 AirTouch Communications, 6.65% 5-1-2008...... BBB+ 1,270,828 1,216,185
1,500,000 ALLTEL Corp., 6.80% 5-1-2029................. A- 1,490,687 1,380,719
1,750,000 AT&T Corp., 6.00% 3-15-2009.................. AA- 1,745,968 1,642,524
1,500,000 Sprint Capital Corp., 5.875% 5-1-2004........ BBB+ 1,492,742 1,445,693
1,500,000 U S West Communications, 5.625% Note
11-15-2008................................. A+ 1,494,941 1,359,344
------------- -------------
8,743,013 8,334,224
------------- -------------
TELEPHONE SERVICES - 0.44%
1,000,000 Century Telephone Enterprises, Inc., 6.15% Sr
Note 1-15-2005............................. BBB+ 998,746 966,934
1,000,000 GTE Corp., 7.51% Note 4-1-2009............... A 992,904 1,036,259
750,000 Telecommunicaciones de Puerto Rico, 6.65%
Note 5-15-2006 (f)......................... BBB 749,726 738,040
------------- -------------
2,741,376 2,741,233
------------- -------------
UTILITIES-ELECTRIC - 1.22%
1,500,000 Detroit Edison Co., 5.90% Medium Term Note
4-16-2001.................................. A- 1,509,086 1,488,450
1,000,000 Duke Energy Corp., 6.00% Sr Note 12-1-2028... A+ 976,273 840,570
1,500,000 Madison Gas & Electric, 6.02% Sr Note
9-15-2008.................................. AA- 1,500,000 1,390,031
1,000,000 Niagara Mohawk Power, 7.25% Sr Note
10-1-2002.................................. BBB- 995,473 1,006,979
1,500,000 Pennsylvania Electric Co., 6.125% 4-1-2009... A 1,499,319 1,417,328
1,500,000 TXU Electric Capital V, 8.175% Deb
1-30-2037.................................. BBB- 1,510,619 1,476,945
------------- -------------
7,990,770 7,620,303
------------- -------------
TOTAL CORPORATE BONDS - INVESTMENT GRADE..... $ 105,779,033 $ 101,235,764
------------- -------------
------------- -------------
</TABLE>
CORPORATE BONDS-NON-INVESTMENT GRADE - 5.77%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
------------ ------------- ------------- -------------
<C> <S> <C> <C> <C>
AUTOMOBILE AND MOTOR VEHICLE PARTS - 0.11%
$ 750,000 Federal-Mogul Co., 7.375% Note 1-15-2006
(f)........................................ BB+ $ 747,029 $ 706,226
------------- -------------
BROADCASTING - 0.29%
750,000 Chancellor Media Corp., 9.00% Deb
10-1-2008.................................. B 826,527 763,125
1,000,000 Sinclair Broadcasting Group, Inc., 10.00% Sr
Sub Note 9-30-2005......................... B 1,000,000 1,022,500
------------- -------------
1,826,527 1,785,625
------------- -------------
</TABLE>
47
<PAGE>
FORTIS SERIES FUND, INC.
ASSET ALLOCATION SERIES (CONTINUED)
Schedule of Investments
June 30, 1999 (Unaudited)
CORPORATE BONDS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
------------ ------------- ------------- -------------
<C> <S> <C> <C> <C>
BUSINESS SERVICES - 0.08%
$ 500,000 Iron Mountain, Inc., 8.75% 9-30-2009......... B- $ 501,933 $ 485,000
------------- -------------
CABLE TELEVISION - 1.54%
1,000,000 Adelphia Communications, Inc., 8.375% Sr Note
2-1-2008................................... B+ 1,006,827 962,500
1,000,000 Adelphia Communications, Inc., 9.25% Sr Note
10-1-2002.................................. B+ 1,014,528 1,012,500
1,008,177 Australis Media Ltd., Sr Sub Disc Note
5-15-2003 (Zero coupon through 5-15-2000,
thereafter 15.75%) (a)(e).................. D 802,731 10
3,500,000 Charter Communications Holdings LLC, 9.92% Sr
Disc Note 4-1-2011 (Zero coupon through
4-1-2004, thereafter 9.92%) (f)(g)......... B+ 2,209,569 2,170,000
1,000,000 CSC Holdings, Inc., 10.50% Sr Sub Deb
5-15-2016.................................. BB- 1,014,278 1,131,250
750,000 CSC Holdings, Inc., 8.125% Sr Deb
8-15-2009.................................. BB+ 769,647 763,125
1,000,000 Lenfest Communications, 8.25% Sr Sub Note
2-15-2008.................................. BB- 997,526 1,016,250
1,750,000 Mediacom LLC/Capital Corp., 7.875% Sr Note
2-15-2011 (f).............................. B+ 1,725,793 1,561,875
750,000 Telewest Communication plc, 8.62% Sr Disc
Note 4-15-2009 (Zero coupon until
4-15-2004, thereafter 9.25%) (e)(g)........ B+ 512,774 499,688
750,000 United International Holdings, 10.53% Sr Disc
Note 2-15-2008 (Zero coupon through
2-15-2003, thereafter 10.75%) (g).......... B 520,913 493,125
------------- -------------
10,574,586 9,610,323
------------- -------------
CHEMICALS - 0.12%
750,000 Lyondell Chemical Co., 9.875% 5-1-2007 (e)... BB 750,703 766,875
------------- -------------
COMPUTER-HARDWARE - 0.18%
1,000,000 Unisys Corp., 11.75% Sr Note 10-15-2004...... BB- 1,069,238 1,110,000
------------- -------------
ENERGY - 0.26%
1,750,000 Energy Corp. of America, 9.50% Sr Sub Note
5-15-2007.................................. B 1,750,000 1,601,250
------------- -------------
ENTERTAINMENT - 0.12%
750,000 Speedway Motorsports, Inc., 8.50% Sr Sub Deb
8-15-2007.................................. B+ 755,701 757,500
------------- -------------
FOOD-MISCELLANEOUS - 0.12%
750,000 Luigino's, Inc., 10.00% Sr Sub Note 2-1-2006
(f)........................................ B- 753,123 733,125
------------- -------------
FOREIGN - GOVERNMENT - 0.39%
800,000 Brazil (Republic of), 11.625% Bond
4-15-2004.................................. B+ 792,750 742,000
1,000,000 Philippines (Republic of), 8.875% Sr Note
4-15-2008.................................. BB+ 975,564 978,750
1,000,000 United Mexican States, 6.25% Secured Note Ser
W-B 12-31-2019............................. BB 756,862 733,737
------------- -------------
2,525,176 2,454,487
------------- -------------
OIL-CRUDE PETROLEUM AND GAS - 0.10%
650,000 Ocean Energy, Inc., 8.875% Sr Sub Note
7-15-2007.................................. BB- 649,726 648,375
------------- -------------
PAPER - 0.16%
1,000,000 Packaging Corp. of America, 9.625% Sr Sub
Note 4-1-2009 (f).......................... B 1,026,524 1,015,000
------------- -------------
TELECOMMUNICATIONS - 1.87%
1,000,000 Hyperion Telecommunications, 12.25% Sr Note
9-1-2004................................... BB- 1,082,824 1,055,000
750,000 Intermedia Communications, Inc., 8.50% Sr
Note 1-15-2008............................. B 750,000 686,250
500,000 McleodUSA, Inc., 8.125% Sr Note 2-15-2009
(f)........................................ NR 496,333 462,500
1,500,000 Metronet Communications, 8.16% Sr Disc Note
6-15-2008 (Zero coupon through 6-15-2003,
thereafter 9.95%) (g)...................... BBB 1,166,453 1,102,500
750,000 Microcell Telecommunications, Inc., 12.52%
Disc Note 6-1-2006 (Zero coupon through
12-1-2001, thereafter 14.00%) (g).......... NR 589,907 605,625
1,500,000 Nextel Communications, Inc., 10.19% Sr Disc
Note 9-15-2007 (Zero coupon through
9-15-2002, thereafter 10.65%) (g).......... B- 1,106,466 1,091,250
1,250,000 Orange plc, 9.00% Sr Sub Deb 6-1-2009 (e).... BB- 1,251,874 1,256,250
750,000 Qwest Communications International, Inc.,
7.25% Sr Note Ser B 11-1-2008.............. BB+ 750,000 735,000
1,250,000 RCN Corp., 10.00% Sr Note 10-15-2007......... NR 1,280,954 1,256,250
2,000,000 Rogers Cantel, Inc., 9.375% Sr Secured Deb
6-1-2008................................... BB+ 2,114,444 2,072,500
1,000,000 Splitrock Services, Inc., 11.75% Sr Note
7-15-2008.................................. NR 1,007,400 935,000
</TABLE>
48
<PAGE>
CORPORATE BONDS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
------------ ------------- ------------- -------------
<C> <S> <C> <C> <C>
$ 500,000 Winstar Communications, Inc., 11.15% Sr Disc
Note 10-15-2005 (Zero coupon until
10-15-2000, thereafter 14.00%) (g)......... CCC+ $ 456,288 $ 437,500
------------- -------------
12,052,943 11,695,625
------------- -------------
TELEPHONE SERVICES - 0.27%
750,000 Alaska Communications SY, 9.375% Sr Sub Note
5-15-2009 (e).............................. B+ 750,714 720,000
1,000,000 Level 3 Communications, Inc., 9.125% Sr Note
5-1-2008................................... B 997,522 982,500
------------- -------------
1,748,236 1,702,500
------------- -------------
TEXTILE MANUFACTURING - 0.16%
1,000,000 Pillowtex Corp., 10.00% Sr Sub Note
11-15-2006................................. B+ 1,045,953 990,000
------------- -------------
TOTAL CORPORATE BONDS - NON-INVESTMENT
GRADE...................................... $ 37,777,398 $ 36,061,911
------------- -------------
------------- -------------
</TABLE>
U.S. GOVERNMENT SECURITIES-5.78%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Cost (b) Value (c)
------------ ------------- -------------
<C> <S> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 2.06%
MORTGAGE BACKED SECURITIES:
$ 7,561,754 6.00% 2013-2014 (i).......................... $ 7,317,594 $ 7,259,980
736,637 6.30% 2008................................... 737,529 719,448
1,927,841 6.63% 2005................................... 1,977,481 1,934,290
1,141,305 7.00% 2011................................... 1,121,286 1,146,350
1,261,876 7.50% 2022-2027.............................. 1,302,501 1,276,184
511,653 8.00% 2025................................... 519,408 525,061
25,348 9.00% 2021................................... 25,293 26,855
------------- -------------
TOTAL FEDERAL NATIONAL MORTGAGE
ASSOCIATION................................ 13,001,092 12,888,168
------------- -------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -
0.67%
MORTGAGE BACKED SECURITIES:
1,960,744 7.50% 2023................................... 1,868,221 1,982,628
1,981,976 9.00% 2022-2023.............................. 2,046,390 2,103,548
80,337 9.50% 2020................................... 80,136 86,547
------------- -------------
TOTAL GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION................................ 3,994,747 4,172,723
------------- -------------
U.S. TREASURY SECURITIES - 3.05%
BONDS:
30,150,000 5.65% 2019 Zero Coupon Strip (g)............. 9,006,225 8,757,339
------------- -------------
NOTES:
3,000,000 4.625% 2000.................................. 2,980,371 2,966,250
1,800,000 5.50% 2003................................... 1,792,189 1,785,375
5,500,000 6.125% 2007.................................. 5,565,826 5,560,159
------------- -------------
10,338,386 10,311,784
------------- -------------
TOTAL U.S. TREASURY SECURITIES............... 19,344,611 19,069,123
------------- -------------
TOTAL U.S. GOVERNMENT SECURITIES............. 36,340,450 36,130,014
------------- -------------
------------- -------------
TOTAL LONG-TERM INVESTMENTS.................. $ 547,788,829 $ 622,171,452
------------- -------------
------------- -------------
</TABLE>
49
<PAGE>
FORTIS SERIES FUND, INC.
ASSET ALLOCATION SERIES (CONTINUED)
Schedule of Investments
June 30, 1999 (Unaudited)
SHORT-TERM INVESTMENTS-1.14%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
------------ -------------
<C> <S> <C>
BANKS - 1.14%
$ 7,129,164 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 4.91%........ $ 7,129,164
-------------
-------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$554,917,993) (B).......................... $ 629,300,616
-------------
-------------
</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, 1999, the cost of securities for federal income tax purposes
was $555,577,536, and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 87,321,512
Unrealized depreciation..................................... (13,598,432)
- --------------------------------------------------------------------------
Net unrealized appreciation................................. $ 73,723,080
- --------------------------------------------------------------------------
</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 8.42% of net assets as of June 30, 1999.
(e) Securities sold within the terms of a private placement memorandum, exempt
from registration under Section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or to other
"accredited investors". These investments have been identified by portfolio
management as illiquid securities:
<TABLE>
<CAPTION>
Year Acquired Shares/Par Security Cost Basis
- ------------- ----------- ----------------------------------------------------------------------------------- ----------
<S> <C> <C> <C>
1999 750,000 Alaska Communications SY due 2009 - 144A $ 750,714
1997 1,008,177 Australis Media Ltd. due 2003 802,731
1997 798,310 Blackrock Capital Finance L.P. due 2037 - 144A 805,598
1997 1,500,000 DLJ Mortgage Acceptance Corp. due 2007 - 144A 1,513,308
1996 1,560,370 DLJ Mortgage Acceptance Corp. due 2028 - 144A 1,571,737
1999 1,250,000 Goldman Sachs Group due 2009 - 144A 1,250,000
1997 250 Highwaymaster Communications, Inc. (Warrants) - 144A 4,547
1996 1,000 Hyperion Telecom (Warrants) - 144A 4,022
1999 750,000 Lyondell Chemical Co. due 2007 - 144A 750,703
1999 1,250,000 Orange plc due 2009 - 144A 1,251,874
1999 1,500,000 Pepsi Bottling Group due 2029 - 144A 1,489,832
1998 1,250,000 Prudential Insurance Co. due 2006 - 144A 1,244,997
1999 750,000 Telewest Communication plc due 2009 - 144A 512,774
</TABLE>
The aggregate value of these securities at June 30, 1999, was
$10,919,604, which represents 1.75% of total net assets.
(f) Securities sold within the terms of a private placement memorandum, exempt
from registration under Section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or to other
"accredited investors". Pursuant to guidelines adopted by the Board of
Directors, these issues are deemed to be liquid. The aggregate value of
these securities at June 30, 1999, was $11,033,257, which represents 1.76%
of total net assets.
(g) The interest rate disclosed for these securities represents the effective
yield on the date of acquisition.
(h) The interest rate disclosed for principal only strips represents effective
yield at June 30, 1999, based upon future cash flows. This security has
been identified by portfolio management as a liquid security. The aggregate
value of this security at June 30, 1999, was $512,745, which represents
.08% of total net assets.
(i) The cost of securities purchased on a when-issued basis at June 30, 1999,
was $5,751,562.
* Moody's Rating
** Duff & Phelps Rating
50
<PAGE>
FORTIS SERIES FUND, INC.
VALUE SERIES
Schedule of Investments
June 30, 1999 (Unaudited)
COMMON STOCKS-97.95%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
------- ------------ ------------
<C> <S> <C> <C>
AEROSPACE AND EQUIPMENT - 1.31%
9,700 Raytheon Co. Class B......................... $ 696,629 $ 682,637
8,000 United Technologies Corp..................... 436,505 573,500
------------ ------------
1,133,134 1,256,137
------------ ------------
AUTOMOBILE AND MOTOR VEHICLE
PARTS - 0.14%
7,338 Delphi Automotive Systems Corp............... 98,436 136,212
------------ ------------
AUTOMOBILE MANUFACTURERS - 3.08%
32,000 Ford Motor Co................................ 1,733,116 1,806,000
17,500 General Motors Corp.......................... 956,037 1,155,000
------------ ------------
2,689,153 2,961,000
------------ ------------
BANKS - 5.75%
31,300 Bank of America Corp......................... 1,758,907 2,294,681
13,800 Bank of New York Company, Inc................ 418,763 506,287
21,300 Chase Manhattan Corp......................... 1,567,152 1,845,112
11,500 Fleet Financial Group, Inc................... 436,440 510,312
6,500 PNC Bank Corp................................ 317,013 374,562
------------ ------------
4,498,275 5,530,954
------------ ------------
BEVERAGE - 2.26%
12,500 Anheuser-Busch Companies, Inc................ 923,102 886,719
5,000 Canandaigua Brands, Inc. Class A (a)......... 273,534 262,187
44,500 Pepsi Bottling Group, Inc.................... 965,753 1,026,281
------------ ------------
2,162,389 2,175,187
------------ ------------
BUILDING MATERIALS - 0.46%
13,000 Owens Corning................................ 476,163 446,875
------------ ------------
BUSINESS SERVICES - 4.31%
24,500 American Management Systems, Inc. (a)........ 721,613 785,531
16,500 Avis Rent A Car, Inc. (a).................... 478,528 480,562
18,500 First Data Corp.............................. 833,189 905,344
24,500 Modis Professional Services, Inc. (a)........ 360,393 336,875
16,000 National Data Corp........................... 722,281 684,000
16,000 Policy Management Systems Corp. (a).......... 476,297 480,000
5,000 Tyco International Ltd....................... 436,033 473,750
------------ ------------
4,028,334 4,146,062
------------ ------------
CHEMICALS - 1.06%
8,000 Dow Chemical Co.............................. 851,964 1,015,000
------------ ------------
CHEMICALS-SPECIALTY - 0.50%
7,000 Geon Co...................................... 225,890 225,750
11,000 NOVA Chemicals Corp.......................... 236,219 256,437
------------ ------------
462,109 482,187
------------ ------------
COMPUTER-COMMUNICATION
EQUIPMENT - 0.79%
15,500 NCR Corp. (a)................................ 704,079 756,594
------------ ------------
COMPUTER-HARDWARE - 0.82%
17,000 Apple Computer, Inc. (a)..................... 735,308 787,312
------------ ------------
COMPUTER-SOFTWARE - 3.95%
7,000 Adaptec, Inc. (a)............................ 176,188 247,187
11,000 Affiliated Computer Services, Inc. (a)....... 467,889 556,875
8,500 Check Point Software Technologies Ltd. (a) 376,550 455,812
9,500 Computer Associates International, Inc....... 464,571 522,500
16,000 Compuware Corp. (a).......................... 467,371 509,000
40,500 CSG Systems International, Inc. (a).......... 1,019,383 1,060,594
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ------------ ------------
<C> <S> <C> <C>
8,000 Electronic Data Systems Corp................. $ 325,490 $ 452,500
------------ ------------
3,297,442 3,804,468
------------ ------------
CONSTRUCTION - 1.08%
14,000 Centex Corp.................................. 491,638 525,875
8,400 Kaufman & Broad Home Corp.................... 202,652 208,950
13,100 Pulte Corp................................... 296,604 302,119
------------ ------------
990,894 1,036,944
------------ ------------
ELECTRONIC-CONTROLS AND
EQUIPMENT - 2.52%
9,200 American Power Conversion Corp. (a).......... 160,138 185,150
7,800 Dionex Corp. (a)............................. 351,933 315,900
19,100 Hewlett-Packard Co........................... 954,677 1,919,550
------------ ------------
1,466,748 2,420,600
------------ ------------
ELECTRONIC-DEFENSE - 1.01%
9,000 L-3 Communications Holdings, Inc. (a)........ 441,945 434,812
7,500 Litton Industries, Inc. (a).................. 471,652 538,125
------------ ------------
913,597 972,937
------------ ------------
ELECTRONIC-SEMICONDUCTOR AND
CAPACITOR - 1.56%
13,500 Altera Corp. (a)............................. 466,997 496,969
5,500 Micron Technology, Inc. (a).................. 237,553 221,719
5,400 Texas Instruments, Inc....................... 642,307 783,000
------------ ------------
1,346,857 1,501,688
------------ ------------
FINANCIAL SERVICES - 12.83%
7,500 Ambac Financial Group, Inc................... 447,514 428,437
30,500 C.I.T. Group, Inc............................ 894,546 880,687
13,000 Capital One Financial Corp................... 707,589 723,937
60,375 Citigroup, Inc............................... 1,710,755 2,867,812
7,000 Conseco, Inc................................. 244,082 213,062
11,000 Countrywide Credit Industries, Inc........... 452,049 470,250
32,500 Fannie Mae................................... 2,094,445 2,222,187
26,500 Freddie Mac.................................. 1,464,535 1,537,000
31,000 Heller Financial, Inc........................ 819,351 862,187
3,000 J.P. Morgan & Co., Inc....................... 261,534 421,500
8,500 Marsh & McLennan Companies, Inc.............. 465,672 641,750
9,500 MGIC Investment Corp......................... 455,278 461,937
6,000 Morgan Stanley Dean Witter & Co.............. 428,693 615,000
------------ ------------
10,446,043 12,345,746
------------ ------------
FOOD - 0.75%
17,000 U.S. Foodservice (a)......................... 770,165 724,625
------------ ------------
FURNITURE - 0.74%
25,500 Furniture Brands International, Inc. (a)..... 659,754 710,812
------------ ------------
HEALTH CARE SERVICES - 1.30%
11,000 C.R. Bard, Inc............................... 470,706 525,937
6,000 MedQuist, Inc. (a)........................... 221,183 262,500
5,500 Wellpoint Health Networks, Inc. (a).......... 411,799 466,812
------------ ------------
1,103,688 1,255,249
------------ ------------
HOTEL AND GAMING - 0.25%
25,000 Park Place Entertainment Corp. (a)........... 246,511 242,188
------------ ------------
INSURANCE - 3.05%
5,000 Aetna, Inc................................... 464,214 447,188
13,000 American General Corp........................ 930,970 979,875
7,100 Hartford Financial Services Group, Inc....... 369,045 414,019
</TABLE>
51
<PAGE>
FORTIS SERIES FUND, INC.
VALUE SERIES (CONTINUED)
Schedule of Investments
June 30, 1999 (Unaudited)
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ------------ ------------
<C> <S> <C> <C>
33,500 MONY Group, Inc.............................. $ 963,542 $ 1,092,938
------------ ------------
2,727,771 2,934,020
------------ ------------
LEISURE TIME-AMUSEMENTS - 1.21%
39,000 Hollywood Entertainment Corp. (a)............ 876,169 762,938
19,000 Mandalay Resort Group (a).................... 422,651 401,375
------------ ------------
1,298,820 1,164,313
------------ ------------
MACHINERY-SPECIALTY - 0.46%
6,800 Ingersoll-Rand Co............................ 304,966 439,450
------------ ------------
MACHINERY-TOOLS - 0.42%
7,000 Danaher Corp................................. 454,884 406,875
------------ ------------
MEDIA - 2.01%
7,000 Meredith Corp................................ 248,387 242,375
23,000 Time Warner, Inc............................. 1,495,807 1,690,500
------------ ------------
1,744,194 1,932,875
------------ ------------
MEDICAL SUPPLIES - 2.35%
23,500 Baxter International, Inc. (with rights)..... 1,434,539 1,424,688
22,500 IDEXX Laboratories, Inc. (a)................. 484,978 524,531
8,500 Mallinckrodt Group, Inc...................... 255,377 309,188
------------ ------------
2,174,894 2,258,407
------------ ------------
METALS-FABRICATING - 0.50%
9,000 Waters Corp. (a)............................. 448,483 478,125
------------ ------------
METALS-MINING AND
MISCELLANEOUS - 0.51%
8,000 Alcoa, Inc................................... 319,359 495,000
------------ ------------
NATURAL GAS TRANSMISSIONS - 0.46%
12,500 El Paso Energy Corp.......................... 463,737 439,844
------------ ------------
NATURAL RESOURCES - 0.12%
5,500 Dynegy, Inc.................................. 99,410 112,063
------------ ------------
OFFICE EQUIPMENT AND SUPPLIES - 2.83%
17,600 Pitney Bowes, Inc............................ 1,159,342 1,130,800
27,000 Xerox Corp................................... 1,618,053 1,594,688
------------ ------------
2,777,395 2,725,488
------------ ------------
OIL AND GAS FIELD SERVICES - 0.60%
9,000 Schlumberger Ltd............................. 430,643 573,188
------------ ------------
OIL-CRUDE PETROLEUM AND GAS - 11.01%
10,200 Chevron Corp................................. 872,057 970,913
52,000 Conoco, Inc. Class A......................... 1,268,949 1,449,500
45,400 Exxon Corp................................... 3,300,399 3,501,475
9,500 Mobil Corp................................... 750,365 940,500
28,000 Phillips Petroleum Co........................ 1,445,499 1,408,750
23,100 Royal Dutch Petroleum Co. NY Shares.......... 1,151,633 1,391,775
28,500 USX-Marathon Group........................... 880,422 928,031
------------ ------------
9,669,324 10,590,944
------------ ------------
PAPER - 1.21%
30,500 Louisiana-Pacific Corp....................... 659,229 724,375
6,500 Temple-Inland, Inc........................... 452,272 443,625
------------ ------------
1,111,501 1,168,000
------------ ------------
PRINTING - 0.98%
9,500 Electronics for Imaging, Inc. (a)............ 441,252 488,063
12,500 Valassis Communications, Inc. (a)............ 462,997 457,813
------------ ------------
904,249 945,876
------------ ------------
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ------------ ------------
<C> <S> <C> <C>
PUBLISHING - 0.66%
14,000 McClatchy Co. Class A........................ $ 474,330 $ 463,750
9,900 Wiley (John) & Sons, Inc. Class A............ 211,693 174,488
------------ ------------
686,023 638,238
------------ ------------
RESTAURANTS AND FRANCHISING - 0.58%
25,500 Darden Restaurants, Inc...................... 547,171 556,219
------------ ------------
RETAIL-CLOTHING - 2.08%
10,000 AnnTaylor Stores Corp. (a)................... 437,075 450,000
15,500 Ross Stores, Inc............................. 752,501 780,813
14,000 Talbots, Inc................................. 459,575 533,750
7,000 TJX Companies, Inc........................... 218,406 233,188
------------ ------------
1,867,557 1,997,751
------------ ------------
RETAIL-DEPARTMENT STORES - 1.18%
8,500 Harcourt General, Inc........................ 444,745 438,281
17,000 May Department Stores Co..................... 742,196 694,875
------------ ------------
1,186,941 1,133,156
------------ ------------
RETAIL-DISCOUNT STORES - 0.52%
30,500 Kmart Corp. (a).............................. 501,292 501,344
------------ ------------
RETAIL-MISCELLANEOUS - 0.77%
11,500 Regis Corp................................... 297,552 220,656
20,500 Tupperware Corp.............................. 471,896 522,750
------------ ------------
769,448 743,406
------------ ------------
SHIP BUILDING, SHIPPING - 0.44%
14,000 Tidewater, Inc............................... 369,213 427,000
------------ ------------
TELECOMMUNICATION EQUIPMENT - 1.86%
22,500 ECI Telecommunications Ltd................... 821,405 746,719
18,500 General Instrument Corp. (a)................. 652,022 786,250
7,000 Scientific-Atlanta, Inc...................... 249,801 252,000
------------ ------------
1,723,228 1,784,969
------------ ------------
TELEPHONE SERVICES - 9.53%
47,500 AT&T Corp.................................... 2,186,356 2,651,094
28,500 Bell Atlantic Corp........................... 1,600,842 1,863,188
36,000 BellSouth Corp............................... 1,487,155 1,687,500
24,500 CenturyTel, Inc.............................. 968,336 973,875
17,000 GTE Corp..................................... 1,154,761 1,287,750
13,400 Sprint Corp.................................. 306,096 707,688
------------ ------------
7,703,546 9,171,095
------------ ------------
TOBACCO - 0.23%
5,500 Philip Morris Companies, Inc................. 229,071 221,031
------------ ------------
TRANSPORTATION - 0.81%
26,500 United Rentals, Inc. (a)..................... 712,921 781,750
------------ ------------
UNIT INVESTMENT TRUST - 2.81%
20,000 S & P 500 Depositary Receipt................. 2,635,576 2,703,564
------------ ------------
UTILITIES-ELECTRIC - 2.29%
11,000 Consolidated Edison, Inc..................... 562,846 497,750
15,500 Edison International......................... 422,439 414,625
7,000 Public Service Enterprise Group, Inc......... 280,858 286,125
13,500 Reliant Energy, Inc.......................... 437,551 372,938
13,500 Southern Co.................................. 402,153 357,750
7,000 Unicom Corp.................................. 270,445 269,938
------------ ------------
2,376,292 2,199,126
------------ ------------
TOTAL COMMON STOCKS.......................... $ 85,318,952 $ 94,231,894
------------ ------------
------------ ------------
</TABLE>
52
<PAGE>
SHORT-TERM INVESTMENTS-2.76%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
----------- ------------
<C> <S> <C>
BANKS - 2.38%
$2,286,700 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 4.91%........ $ 2,286,700
------------
DIVERSIFIED FINANCE - 0.38%
370,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.01%...................... 370,000
------------
TOTAL SHORT-TERM INVESTMENTS................. 2,656,700
------------
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$87,975,652) (b)........................... $96,888,594
------------
------------
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 1999, the cost of securities for federal income tax purposes
was $88,284,848 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 10,140,436
Unrealized depreciation..................................... (1,536,690)
- --------------------------------------------------------------------------
Net unrealized appreciation................................. $ 8,603,746
- --------------------------------------------------------------------------
</TABLE>
(c) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets. Market value of investments in foreign
securities represents 2.96% of total net assets as of June 30, 1999.
53
<PAGE>
FORTIS SERIES FUND, INC.
GROWTH & INCOME SERIES
Schedule of Investments
June 30, 1999 (Unaudited)
COMMON STOCKS-86.59%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
-------- ------------- -------------
<C> <S> <C> <C>
ADVERTISING-PUBLIC RELATIONS - 1.12%
42,000 Interpublic Group of Companies, Inc.......... $ 3,241,950 $ 3,638,250
------------- -------------
AEROSPACE AND EQUIPMENT - 2.05%
25,000 Northrop Grumman Corp........................ 1,682,750 1,657,812
70,000 United Technologies Corp..................... 2,018,747 5,018,125
------------- -------------
3,701,497 6,675,937
------------- -------------
AUTOMOBILE MANUFACTURERS - 0.45%
26,000 Ford Motor Co................................ 1,599,814 1,467,375
------------- -------------
BANKS - 6.35%
61,000 Bank of America Corp......................... 4,282,018 4,472,062
85,799 Bank One Corp................................ 3,075,007 5,110,403
42,000 Chase Manhattan Corp......................... 3,283,770 3,638,250
88,000 Fleet Financial Group, Inc................... 3,294,470 3,905,000
55,000 Marshall & Ilsley Corp....................... 3,176,800 3,540,625
------------- -------------
17,112,065 20,666,340
------------- -------------
BEVERAGE - 0.87%
40,000 Anheuser-Busch Companies, Inc................ 2,475,919 2,837,500
------------- -------------
BROKERAGE AND INVESTMENT - 0.80%
32,700 Merrill Lynch & Co., Inc..................... 2,689,224 2,613,956
------------- -------------
BUSINESS SERVICES - 3.58%
70,000 Automatic Data Processing, Inc............... 3,246,733 3,080,000
107,000 Omnicom Group, Inc........................... 2,883,907 8,560,000
------------- -------------
6,130,640 11,640,000
------------- -------------
CHEMICALS - 1.50%
50,000 du Pont (E.I.) de Nemours & Co............... 3,708,342 3,415,625
30,000 Union Carbide Corp........................... 1,654,908 1,462,500
------------- -------------
5,363,250 4,878,125
------------- -------------
CHEMICALS-SPECIALTY - 0.49%
70,000 Engelhard Corp............................... 1,418,597 1,583,750
------------- -------------
COMPUTER-SOFTWARE - 1.11%
64,000 Electronic Data Systems Corp................. 3,332,652 3,620,000
------------- -------------
DRUGS - 4.22%
600 Abbott Laboratories.......................... 21,506 27,300
63,000 American Home Products Corp.................. 3,555,824 3,622,500
46,000 Bristol-Myers Squibb Co...................... 3,179,294 3,240,125
120,500 Pharmacia and Upjohn, Inc.................... 4,853,589 6,845,906
------------- -------------
11,610,213 13,735,831
------------- -------------
ELECTRICAL EQUIPMENT - 2.06%
59,200 General Electric Co.......................... 2,295,975 6,689,600
------------- -------------
FINANCIAL SERVICES - 4.70%
70,000 Household International, Inc................. 3,213,278 3,316,262
45,000 J.P. Morgan & Co., Inc....................... 6,446,741 6,322,500
75,000 Marsh & McLennan Companies, Inc.............. 4,450,807 5,662,500
------------- -------------
14,110,826 15,301,262
------------- -------------
FOOD - 4.99%
36,000 Campbell Soup Co............................. 1,613,573 1,669,500
50,000 Groupe Danone ADR............................ 1,800,486 2,615,625
145,000 Nabisco Group Holdings Corp.................. 3,273,677 2,836,562
70,000 Nabisco Holdings Corp. Class A............... 3,101,448 3,027,500
92,000 Quaker Oats Co............................... 4,759,626 6,106,500
------------- -------------
14,548,810 16,255,687
------------- -------------
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------- -------------
<C> <S> <C> <C>
FOREST PRODUCTS - 0.76%
36,000 Weyerhaeuser Co.............................. $ 2,417,324 $ 2,475,000
------------- -------------
INSURANCE - 5.63%
65,000 Allstate Corp................................ 2,514,324 2,331,875
71,394 American International Group, Inc............ 3,508,321 8,357,560
150,000 Aon Corp..................................... 6,586,931 6,187,500
85,500 LaSalle Re Holdings Ltd...................... 3,061,543 1,453,500
------------- -------------
15,671,119 18,330,435
------------- -------------
LEISURE TIME-AMUSEMENTS - 0.87%
65,000 Royal Caribbean Cruises Ltd.................. 1,320,313 2,843,750
------------- -------------
MACHINERY-OIL AND WELL - 1.34%
130,000 Baker Hughes, Inc............................ 2,806,855 4,355,000
------------- -------------
MEDICAL SUPPLIES - 0.93%
50,000 Baxter International, Inc. (with rights)..... 1,942,677 3,031,250
------------- -------------
NATURAL GAS TRANSMISSIONS - 6.48%
114,254 El Paso Energy Corp.......................... 1,836,879 4,020,313
137,212 Enron Corp................................... 5,399,914 11,217,081
138,000 Williams Companies, Inc...................... 3,144,791 5,873,625
------------- -------------
10,381,584 21,111,019
------------- -------------
OIL AND GAS FIELD SERVICES - 1.17%
60,000 Schlumberger Ltd............................. 3,110,730 3,821,250
------------- -------------
OIL-CRUDE PETROLEUM AND GAS - 8.63%
22,000 BP Amoco plc ADR............................. 1,315,355 2,387,000
37,000 Chevron Corp................................. 3,216,314 3,521,937
108,000 Conoco, Inc. Class A......................... 2,484,000 3,010,500
48,000 Exxon Corp................................... 1,982,160 3,702,000
61,000 Mobil Corp................................... 4,349,056 6,039,000
31,000 Phillips Petroleum Co........................ 1,635,086 1,559,688
55,000 Royal Dutch Petroleum Co. NY Shares 2,642,866 3,313,750
72,888 Texaco, Inc.................................. 3,433,067 4,555,500
------------- -------------
21,057,904 28,089,375
------------- -------------
PUBLISHING - 4.01%
150,000 McGraw-Hill Companies, Inc................... 5,413,594 8,090,625
125,000 Reader's Digest Association, Inc. Class A.... 3,500,475 4,968,750
------------- -------------
8,914,069 13,059,375
------------- -------------
REAL ESTATE-INVESTMENT TRUST - 1.37%
156,000 Cornerstone Properties, Inc.................. 2,257,051 2,476,500
77,000 Equity Office Properties Trust............... 1,612,644 1,973,133
------------- -------------
3,869,695 4,449,633
------------- -------------
RETAIL-DEPARTMENT STORES - 0.59%
42,800 Sears, Roebuck & Co.......................... 1,764,053 1,907,275
------------- -------------
RETAIL-SPECIALTY - 1.60%
110,250 Intimate Brands, Inc......................... 1,979,627 5,223,094
------------- -------------
STEEL AND IRON - 0.60%
75,000 British Steel plc ADR........................ 1,685,625 1,954,688
------------- -------------
TELECOMMUNICATIONS - 2.03%
90,000 Ameritech Corp............................... 3,370,634 6,615,000
------------- -------------
TELEPHONE SERVICES - 11.55%
76,000 ALLTEL Corp.................................. 3,280,417 5,434,000
124,500 AT&T Corp.................................... 5,413,664 6,948,656
100,000 Frontier Corp................................ 3,288,923 5,900,000
</TABLE>
54
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------- -------------
<C> <S> <C> <C>
82,000 GTE Corp..................................... $ 3,840,836 $ 6,211,500
158,000 SBC Communications, Inc...................... 5,189,562 9,164,000
67,000 U S West, Inc................................ 2,424,445 3,936,250
------------- -------------
23,437,847 37,594,406
------------- -------------
TOBACCO - 1.17%
57,000 Philip Morris Companies, Inc................. 2,470,770 2,290,688
48,333 R.J. Reynolds Tobacco Holdings, Inc. (a)..... 1,095,303 1,522,500
------------- -------------
3,566,073 3,813,188
------------- -------------
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------- -------------
<C> <S> <C> <C>
TOYS - 0.47%
55,000 Hasbro, Inc.................................. $ 1,677,297 $ 1,536,563
------------- -------------
UTILITIES-ELECTRIC - 3.10%
66,000 Montana Power Co............................. 4,438,962 4,653,000
185,000 Potomac Electric Power Co.................... 5,518,001 5,445,938
------------- -------------
9,956,963 10,098,938
------------- -------------
TOTAL COMMON STOCKS.......................... $ 208,561,821 $ 281,912,852
------------- -------------
------------- -------------
</TABLE>
PREFERRED STOCKS - 7.83%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
------- ------------- -------------
<C> <S> <C> <C>
CABLE TELEVISION - 0.54%
8,800 Adelphia Communications Corp. Class A, Conv.,
Ser D, 5.50%............................... $ 1,760,000 $ 1,768,800
------------- -------------
CONTAINERS AND PACKAGING - 0.87%
45,000 Sealed Air Corp., Conv., Ser A............... 2,896,790 2,812,500
------------- -------------
MEDIA - 1.76%
45,000 Tribune Co., Conv., 2.00%.................... 7,065,000 5,737,500
------------- -------------
MISCELLANEOUS - 1.54%
88,000 Qwest Trends Trust, Conv., 5.75% (d)......... 3,674,000 5,016,000
------------- -------------
TELECOMMUNICATIONS - 1.80%
34,400 Comcast Corp. Special Class A, 3.35%......... 2,840,150 2,971,300
43,700 Global TeleSystems Group, Inc., Conv., 7.25%
(d)........................................ 2,185,000 2,873,275
------------- -------------
5,025,150 5,844,575
------------- -------------
UTILITIES-ELECTRIC - 1.32%
52,000 AES Corp., Conv., Ser A "Tecons", 5.375%..... 2,600,000 4,303,000
------------- -------------
TOTAL PREFERRED STOCKS....................... $ 23,020,940 $ 25,482,375
------------- -------------
------------- -------------
</TABLE>
CORPORATE BONDS-INVESTMENT GRADE - 0.56%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- ------------- ------------- -------------
<C> <S> <C> <C> <C>
WASTE DISPOSAL - 0.56%
$1,400,000 Waste Management, Inc., 4.00% Conv.
2-1-2002................................... BBB $ 1,443,875 $ 1,835,750
------------- -------------
</TABLE>
CORPORATE BONDS-NON-INVESTMENT GRADE - 1.54%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- ------------- ------------- -------------
<C> <S> <C> <C> <C>
ELECTRONIC-SEMICONDUCTOR AND CAPACITOR -
0.48%
$1,600,000 Cypress Semiconductor Corp., 6.00% Conv.
10-1-2002 (d).............................. B $ 1,600,000 $ 1,546,000
------------- -------------
HEALTH CARE SERVICES - 0.28%
1,700,000 Assisted Living Concepts, Inc., 5.625% Conv.
5-1-2003 (d)............................... NR 1,700,000 926,500
------------- -------------
TELEPHONE SERVICES - 0.78%
2,500,000 Telefonos de Mexico, S.A., 4.25% Conv. Ser A
6-15-2004.................................. BB 2,500,000 2,528,125
------------- -------------
TOTAL CORPORATE BONDS - NON-INVESTMENT
GRADE...................................... 5,800,000 5,000,625
------------- -------------
------------- -------------
TOTAL LONG-TERM INVESTMENTS.................. $ 238,826,636 $ 314,231,602
------------- -------------
------------- -------------
</TABLE>
55
<PAGE>
FORTIS SERIES FUND, INC.
GROWTH & INCOME SERIES (CONTINUED)
Schedule of Investments
June 30, 1999 (Unaudited)
SHORT-TERM INVESTMENTS - 3.32%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
----------- -------------
<C> <S> <C>
BANKS - 2.95%
$9,619,481 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 4.91%........ $ 9,619,481
-------------
DIVERSIFIED FINANCE - 0.37%
1,201,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.01%...................... 1,201,000
-------------
TOTAL SHORT-TERM INVESTMENTS................. 10,820,481
-------------
-------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$249,647,117) (B).......................... $ 325,052,083
-------------
-------------
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 1999, the cost of securities for federal income tax purposes
was $249,647,117 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $82,374,866
Unrealized depreciation..................................... (6,969,900)
- -------------------------------------------------------------------------
Net unrealized appreciation................................. $75,404,966
- -------------------------------------------------------------------------
</TABLE>
(c) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Securities sold within the terms of a private placement memorandum, exempt
from registration under Section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or to other
"accredited investors". These investments have been identified by portfolio
management as illiquid securities:
<TABLE>
<CAPTION>
Period Acquired Shares/Par Security Cost Basis
- ---------------- ------------- ----------------------------------------------------- --------------
<S> <C> <C> <C>
1998 1,700,000 Assisted Living Concepts, Inc. due 2003 - 144A $1,700,000
1997 1,600,000 Cypress Semiconductor Corp. due 2002 - 144A 1,600,000
1999 43,700 Global TeleSystems Group, Inc., Conv. - 144A 2,185,000
1998 88,000 Qwest Trends Trust, Conv. - 144A 3,674,000
</TABLE>
The value of these securities at June 30, 1999, was $10,361,775, which
represents 3.18% of total net assets.
(e) 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 4.38% of total net assets as of June 30, 1999.
56
<PAGE>
FORTIS SERIES FUND, INC.
S & P 500 INDEX SERIES
Schedule of Investments
June 30, 1999 (Unaudited)
COMMON STOCKS-97.39%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
-------- ------------- -------------
<C> <S> <C> <C>
BASIC INDUSTRY - 2.92%
7,000 Air Products & Chemicals, Inc................ $ 268,730 $ 281,750
1,200 Armstrong World Industries, Inc.............. 75,542 69,375
3,500 Avery Dennison Corp.......................... 168,707 211,312
900 Ball Corp.................................... 34,438 38,025
1,600 Bemis Co., Inc............................... 62,917 63,600
6,300 Best Buy Co., Inc............................ 415,863 425,250
1,700 Boise Cascade Corp........................... 55,971 73,100
1,800 Centex Corp.................................. 48,744 67,612
2,900 Champion International Corp.................. 144,075 138,837
3,800 Crown Cork & Seal Co., Inc................... 169,533 108,300
17,399 Delphi Automotive Systems Corp. (a).......... 278,447 322,969
6,700 Dow Chemical Co.............................. 616,638 850,062
34,600 Du Pont (E.I.) de Nemours and Co............. 2,037,534 2,363,612
2,400 Eastman Chemical Co.......................... 138,253 124,200
3,800 Engelhard Corp............................... 74,814 85,975
2,300 Fluor Corp................................... 113,794 93,150
1,000 FMC Corp. (a)................................ 71,870 68,312
6,800 Fort James Corp.............................. 265,500 257,550
1,300 Foster Wheeler Corp.......................... 34,285 18,362
5,300 Georgia-Pacific Group........................ 175,702 251,087
1,800 Great Lakes Chemical Corp.................... 76,861 82,912
3,100 Hercules, Inc................................ 127,106 121,869
12,570 International Paper Co....................... 561,001 634,785
1,500 Kaufman & Broad Home Corp.................... 30,081 37,312
3,300 Louisiana-Pacific Corp....................... 65,453 78,375
10,300 Masco Corp................................... 251,879 297,412
3,100 Mead Corp.................................... 98,130 129,425
2,000 Nalco Chemical Co............................ 67,993 103,750
10,700 Occidental Petroleum Corp.................... 252,213 226,037
5,500 Omnicom Group, Inc........................... 272,415 440,000
4,800 Owens-Illinois, Inc. (a)..................... 170,721 156,900
900 Potlatch Corp................................ 41,271 39,544
4,800 Praxair, Inc................................. 216,466 234,910
6,564 Rohm & Haas Co............................... 213,390 281,452
2,543 Sealed Air Corp. (a)......................... 131,376 164,977
5,200 Sherwin-Williams Co.......................... 152,370 144,300
3,100 Sigma-Aldrich Corp........................... 100,821 106,756
1,700 Temple-Inland, Inc........................... 101,755 116,025
5,200 Tenneco, Inc. (with rights).................. 204,550 124,150
4,100 Union Carbide Corp........................... 195,256 199,875
2,200 W.R. Grace & Co. (a)......................... 33,420 40,425
3,100 Westvaco Corp................................ 91,511 89,900
6,200 Weyerhaeuser Co.............................. 316,306 426,250
3,400 Willamette Industries, Inc................... 121,755 156,612
------------- -------------
9,145,457 10,346,393
------------- -------------
CAPITAL SPENDING - 28.99%
11,100 3Com Corp. (a)............................... 418,873 296,231
1,900 Adobe Systems, Inc........................... 90,780 156,097
4,500 Advanced Micro Devices, Inc. (a)............. 105,993 81,281
5,892 Allegheny Teledyne, Inc...................... 141,057 133,306
17,000 AlliedSignal, Inc............................ 699,293 1,071,000
33,400 America Online, Inc. (a)..................... 2,994,945 3,690,700
2,500 Andrew Corp. (with rights) (a)............... 62,981 47,344
4,900 Apple Computer, Inc. (a)..................... 154,572 226,931
11,500 Applied Materials, Inc. (a).................. 443,292 849,562
1,800 Autodesk, Inc................................ 64,197 53,212
19,000 Automatic Data Processing, Inc............... 584,596 836,000
7,200 BMC Software, Inc............................ 383,658 388,800
29,906 Boeing Co.................................... 1,364,325 1,321,471
700 Briggs & Stratton Corp....................... 31,722 40,425
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------- -------------
<C> <S> <C> <C>
4,800 Browning-Ferris Industries, Inc.............. $ 162,157 $ 206,400
5,300 Cabletron Systems, Inc. (a).................. 100,283 68,900
2,300 Case Corp.................................... 124,947 110,687
10,900 Caterpillar, Inc............................. 542,032 654,000
4,400 Ceridian Corp. (a)........................... 111,321 143,825
98,200 Cisco Systems, Inc. (a)...................... 2,754,276 6,333,900
52,205 Compaq Computer Corp......................... 1,417,352 1,236,606
16,500 Computer Associates International, Inc. 699,025 907,500
4,900 Computer Sciences Corp. (a).................. 233,949 339,019
11,300 Compuware Corp. (a).......................... 416,587 359,481
2,900 Cooper Industries, Inc....................... 154,425 150,800
7,500 Corning, Inc................................. 325,876 525,937
2,075 Crane Co..................................... 64,884 65,233
1,300 Cummins Engine Co., Inc...................... 62,303 74,262
4,200 Danaher Corp................................. 196,664 244,125
1,600 Data General Corp. (a)....................... 32,312 23,300
7,200 Deere & Co................................... 341,974 285,300
77,900 Dell Computer Corp. (a)...................... 1,479,378 2,882,300
2,400 Deluxe Corp.................................. 80,866 93,450
6,700 Dover Corp................................... 214,420 234,500
5,000 Dun & Bradstreet Corp........................ 139,085 177,187
2,200 Eaton Corp................................... 169,669 202,400
1,400 EG&G, Inc.................................... 35,180 49,875
15,100 Electronic Data Systems Corp................. 648,735 854,094
31,100 EMC Corp. (a)................................ 741,605 1,710,500
13,400 Emerson Electric Co.......................... 764,561 842,525
13,300 First Data Corp.............................. 467,239 650,869
4,800 Gateway, Inc. (a)............................ 285,200 283,200
3,900 General Dynamics Corp........................ 182,915 267,150
100,500 General Electric Co.......................... 7,722,104 11,356,500
5,550 Genuine Parts Co............................. 179,820 194,250
2,900 Grainger (W.W.), Inc. (with rights).......... 127,968 156,056
2,400 Harris Corp.................................. 101,398 94,050
31,200 Hewlett-Packard Co........................... 1,920,947 3,135,600
3,900 Honeywell, Inc............................... 291,646 451,912
4,600 IKON Office Solutions, Inc................... 101,767 69,000
7,700 Illinois Tool Works, Inc..................... 420,019 631,400
5,050 Ingersoll-Rand Co............................ 215,644 326,356
101,900 Intel Corp................................... 4,417,922 6,063,050
55,700 International Business Machines Corp. 3,294,170 7,199,225
4,300 Interpublic Group of Companies, Inc.......... 233,914 372,487
2,700 ITT Industries, Inc.......................... 92,699 102,937
3,400 Kansas City Southern Industries, Inc......... 193,776 216,962
2,700 KLA-Tencor Corp. (a)......................... 137,925 175,162
12,100 Lockheed Martin Corp......................... 572,980 450,725
4,400 LSI Logic Corp. (a).......................... 121,948 202,950
93,344 Lucent Technologies, Inc..................... 2,982,763 6,294,886
1,800 McDermott International, Inc................. 51,378 50,850
7,700 Micron Technology, Inc. (a).................. 315,964 310,406
156,800 Microsoft Corp. (a).......................... 7,305,279 14,141,400
1,200 Milacron, Inc................................ 27,238 22,200
12,400 Minnesota Mining & Manufacturing Co. 1,053,528 1,078,025
18,500 Motorola, Inc................................ 1,166,500 1,752,875
5,200 National Semiconductor Corp. (a)............. 111,150 131,625
1,300 National Service Industries, Inc............. 52,295 46,800
2,200 Network Appliance, Inc....................... 110,000 122,925
20,420 Nortel Networks Corp......................... 1,004,366 1,772,711
2,100 Northrop Grumman Corp........................ 185,243 139,256
10,300 Novell, Inc. (a)............................. 125,146 272,950
44,250 Oracle Corp. (a)............................. 966,531 1,642,781
1,700 Owens Corning................................ 67,002 58,437
3,800 Pall Corp.................................... 84,759 84,312
</TABLE>
57
<PAGE>
FORTIS SERIES FUND, INC.
S & P 500 INDEX SERIES (CONTINUED)
Schedule of Investments
June 30, 1999 (Unaudited)
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------- -------------
<C> <S> <C> <C>
8,300 Parametric Technology Corp. (a).............. $ 178,187 $ 115,162
3,300 Parker-Hannifin Corp......................... 122,677 150,975
7,550 Paychex, Inc................................. 254,263 240,656
1,600 PE Corp-PE Biosystems Group.................. 110,943 183,600
7,400 PeopleSoft, Inc. (a)......................... 206,626 127,650
8,300 Pitney Bowes, Inc............................ 383,725 533,275
5,300 PPG Industries, Inc.......................... 315,823 313,031
2,400 Raychem Corp................................. 91,210 88,800
10,300 Raytheon Co. Class B......................... 560,608 724,862
5,800 Rockwell International Corp.................. 254,297 352,350
2,200 Ryder System, Inc............................ 67,199 57,200
2,300 Scientific-Atlanta, Inc...................... 47,819 82,800
7,300 Seagate Technology, Inc. (a)................. 227,458 187,062
8,400 Service Corp. International.................. 271,099 161,700
800 Shared Medical Systems Corp.................. 46,937 52,200
5,800 Silicon Graphics, Inc. (a)................... 91,910 94,975
2,100 Snap-on, Inc................................. 79,140 75,994
2,700 Stanley Works................................ 103,012 86,906
23,800 Sun Microsystems, Inc. (a)................... 687,779 1,639,225
1,400 Tektronix, Inc............................... 52,258 42,262
12,000 Tellabs, Inc. (a)............................ 393,607 810,750
12,000 Texas Instruments, Inc....................... 715,746 1,740,000
4,800 Textron, Inc................................. 311,971 395,100
4,800 Thermo Electron Corp. (a).................... 146,250 96,300
1,700 Thomas & Betts Corp.......................... 80,991 80,325
1,900 Timken Co.................................... 46,943 37,050
25,247 Tyco International Ltd....................... 1,367,967 2,392,153
8,300 Unisys Corp.(a).............................. 178,747 323,181
14,800 United Technologies Corp..................... 677,425 1,060,975
18,705 Waste Management, Inc........................ 906,693 1,005,394
20,300 Xerox Corp................................... 873,162 1,198,969
------------- -------------
66,097,765 102,741,628
------------- -------------
CONSUMER CYCLICAL - 0.52%
4,600 AutoZone, Inc. (a)........................... 132,421 138,575
2,800 Dow Jones & Co., Inc......................... 129,792 148,575
5,300 General Instrument Corp. (a)................. 119,545 225,250
2,300 Goodrich (B.F.) Co........................... 94,066 97,750
2,600 Johnson Controls, Inc........................ 131,783 180,212
8,518 McKesson HBOC, Inc........................... 608,072 273,641
300 NACCO Industries, Inc. Class A............... 27,847 22,050
15,300 Safeway, Inc. (a)............................ 832,150 757,350
------------- -------------
2,075,676 1,843,403
------------- -------------
CONSUMER DISCRETIONARY - 12.05%
12,955 Albertson's, Inc............................. 574,673 667,992
2,100 American Greetings Corp. Class A............. 77,053 63,262
2,700 Black & Decker Corp.......................... 134,505 170,437
2,800 Brunswick Corp............................... 72,125 78,050
18,800 Carnival Corp................................ 815,791 911,800
21,900 CBS Corp. (a)................................ 628,253 951,281
3,100 Circuit City Stores - Circuit City Group 139,807 288,300
22,700 Comcast Corp. Class A........................ 426,109 872,531
3,400 Consolidated Stores Corp. (a)................ 121,516 91,800
2,300 Cooper Tire & Rubber Co...................... 50,424 54,337
6,700 Costco Companies, Inc. (a)................... 332,446 536,419
12,000 CVS Corp..................................... 434,034 613,500
5,122 Dana Corp.................................... 222,318 235,932
4,100 Darden Restaurants, Inc...................... 54,834 89,431
13,600 Dayton Hudson Corp........................... 537,712 884,000
3,300 Dillard's, Inc. Class A...................... 113,853 115,912
63,200 Disney (Walt) Co............................. 1,918,434 1,947,350
6,756 Dollar General Corp.......................... 174,261 195,924
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------- -------------
<C> <S> <C> <C>
4,000 Donnelley (R.R.) & Sons Co................... $ 148,967 $ 148,250
6,400 Federated Department Stores, Inc. (a) 270,548 338,800
1,100 Fleetwood Enterprises, Inc................... 39,396 29,081
37,200 Ford Motor Co................................ 1,558,685 2,099,475
2,200 Fruit of the Loom, Inc. Class A.............. 61,692 21,450
8,600 Gannett Co., Inc............................. 479,830 613,825
26,363 Gap, Inc..................................... 565,153 1,328,036
19,900 General Motors Corp.......................... 1,087,065 1,313,400
4,800 Goodyear Tire & Rubber Co.................... 278,843 282,300
1,200 Great Atlantic & Pacific Tea Co., Inc........ 36,901 40,575
2,200 Harcourt General, Inc........................ 109,184 113,437
3,900 Harrah's Entertainment, Inc. (a)............. 74,831 85,800
6,000 Hasbro, Inc.................................. 133,064 167,625
7,900 Hilton Hotels Corp........................... 141,340 112,081
45,500 Home Depot, Inc.............................. 1,702,722 2,931,906
1,100 Jostens, Inc................................. 26,463 23,169
2,200 King World Productions, Inc. (a)............. 51,989 76,587
15,200 Kmart Corp. (a).............................. 218,117 249,850
2,400 Knight-Ridder, Inc........................... 119,647 131,850
5,000 Kohl's Corp. (a)............................. 292,508 385,937
25,400 Kroger Co. (a)............................... 560,219 709,612
6,500 Limited, Inc................................. 176,102 294,937
1,900 Liz Claiborne, Inc........................... 80,170 69,350
1,200 Longs Drug Stores Corp....................... 38,097 41,475
11,400 Lowe's Companies, Inc........................ 390,583 646,237
7,700 Marriott International, Inc. Class A......... 251,392 287,787
12,800 Mattel, Inc.................................. 401,181 338,400
10,500 May Department Stores Co..................... 387,551 429,187
2,700 Maytag Corp.................................. 104,726 188,156
41,700 McDonald's Corp.............................. 1,237,086 1,722,731
6,100 McGraw-Hill Companies, Inc................... 226,213 329,019
18,600 MediaOne Group, Inc. (a)..................... 655,280 1,383,375
1,600 Meredith Corp................................ 52,155 55,400
6,100 Mirage Resorts, Inc. (a)..................... 140,542 102,175
2,000 Navistar International Corp. (a)............. 48,786 100,000
5,500 New York Times Co. Class A................... 154,773 202,469
8,600 Nike, Inc. Class B........................... 448,755 544,487
4,400 Nordstrom, Inc............................... 126,267 147,400
11,500 Office Depot, Inc............................ 258,865 253,719
2,400 PACCAR, Inc.................................. 104,521 128,100
8,100 Penney (J.C.) Co., Inc. (with rights)........ 444,422 393,356
1,600 Pep Boys-Manny, Moe & Jack................... 36,337 34,600
1,700 Reebok International Ltd. (a)................ 43,581 31,662
8,000 Rite Aid Corp................................ 247,507 197,000
1,100 Russell Corp................................. 29,706 21,450
11,700 Sears, Roebuck & Co.......................... 585,727 521,381
600 Springs Industries, Inc. Class A............. 32,932 26,175
14,300 Staples, Inc................................. 302,162 442,406
3,700 SUPERVALU, Inc............................... 73,533 95,044
10,200 SYSCO Corp................................... 225,345 304,087
6,000 Tandy Corp. (with rights).................... 121,391 293,250
36,600 Time Warner, Inc............................. 1,451,961 2,690,100
2,200 Times Mirror Co. Class A..................... 125,374 130,350
9,900 TJX Companies, Inc........................... 228,890 329,794
7,600 Toys 'R' Us, Inc. (a)........................ 200,462 157,225
3,600 Tribune Co................................... 206,682 313,650
4,700 Tricon Global Restaurants, Inc. (a).......... 171,507 254,387
3,700 TRW, Inc..................................... 197,222 203,037
3,700 V. F. Corp................................... 168,469 158,175
21,200 Viacom, Inc. Class B (a)..................... 532,571 932,800
136,700 Wal-Mart Stores, Inc......................... 3,557,483 6,595,775
30,800 Walgreen Co.................................. 564,084 904,750
</TABLE>
58
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------- -------------
<C> <S> <C> <C>
3,800 Wendy's International, Inc................... $ 87,296 $ 107,587
2,300 Whirlpool Corp............................... 125,891 170,200
4,600 Winn-Dixie Stores, Inc....................... 184,532 169,912
------------- -------------
30,013,424 42,713,861
------------- -------------
CONSUMER STAPLES - 8.18%
1,700 Alberto-Culver Co. Class B................... 45,528 45,262
14,600 Anheuser-Busch Companies, Inc................ 734,192 1,035,687
18,044 Archer-Daniels-Midland Co.................... 330,234 278,554
8,000 Avon Products, Inc........................... 289,345 444,000
8,600 Bestfoods.................................... 406,032 425,700
2,100 Brown-Forman Corp. Class B (a)............... 116,308 136,894
13,400 Campbell Soup Co............................. 629,764 621,425
10,200 Clear Channel Communications, Inc. (a)....... 524,104 703,163
3,600 Clorox Co.................................... 317,367 384,525
75,800 Coca-Cola Co................................. 4,938,808 4,737,500
13,000 Coca-Cola Enterprises, Inc................... 398,958 399,750
9,000 Colgate-Palmolive Co......................... 670,423 888,750
15,000 ConAgra, Inc................................. 441,497 399,375
1,100 Coors (Adolph) Co. Class B................... 47,371 54,450
9,900 Eastman Kodak Co............................. 721,249 670,725
4,000 Ecolab, Inc.................................. 110,372 174,500
5,100 Fortune Brands, Inc.......................... 175,747 211,013
4,700 General Mills, Inc........................... 326,218 377,763
34,100 Gillette Co.................................. 1,617,075 1,398,100
11,000 Heinz (H.J.) Co.............................. 537,804 551,375
4,300 Hershey Foods Corp........................... 259,035 255,313
3,300 International Flavors & Fragrances, Inc. 148,998 146,438
12,400 Kellogg Co................................... 479,058 409,200
16,400 Kimberly-Clark Corp.......................... 809,782 934,800
19,400 Monsanto Co.................................. 860,492 765,088
10,000 Nabisco Group Holdings....................... 203,161 195,625
45,400 PepsiCo, Inc................................. 1,609,236 1,756,413
74,100 Philip Morris Companies, Inc................. 3,130,104 2,977,894
7,400 Pioneer Hi-Bred International, Inc........... 222,208 288,138
1,400 Polaroid Corp................................ 56,118 38,675
40,800 Procter & Gamble Co.......................... 3,081,164 3,641,400
4,100 Quaker Oats Co............................... 201,957 272,138
10,000 Ralston-Ralston Purina Group................. 291,856 304,375
27,700 Sara Lee Corp................................ 670,449 628,444
13,100 Seagram Co. Ltd.............................. 527,095 659,913
1,800 Tupperware Corp.............................. 55,488 45,900
17,596 Unilever N.V................................. 1,194,668 1,227,321
5,600 UST, Inc..................................... 170,040 163,800
3,600 Wrigley (WM.) Jr. Co......................... 270,485 324,000
------------- -------------
27,619,790 28,973,386
------------- -------------
ENERGY & RELATED - 6.60%
2,800 Amerada Hess Corp............................ 150,714 166,600
3,800 Anadarko Petroleum Corp...................... 132,994 139,888
3,400 Apache Corp.................................. 110,865 132,600
2,200 Ashland, Inc................................. 109,988 88,275
9,900 Atlantic Richfield Co........................ 703,027 827,269
10,100 Baker Hughes, Inc............................ 278,570 338,350
5,405 Burlington Resources, Inc.................... 228,666 233,766
20,100 Chevron Corp................................. 1,556,406 1,913,269
3,800 CMS Energy Corp.............................. 167,982 159,125
6,500 Coastal Corp................................. 194,410 260,000
2,500 Columbia Energy Group........................ 120,111 156,719
2,900 Consolidated Natural Gas Co.................. 153,016 176,175
4,600 Constellation Energy Group................... 131,478 136,275
700 Eastern Enterprises.......................... 28,877 27,825
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------- -------------
<C> <S> <C> <C>
10,900 Enron Corp................................... $ 549,257 $ 891,075
74,600 Exxon Corp................................... 4,716,092 5,753,525
13,500 Halliburton Co............................... 519,356 610,875
1,500 Helmerich & Payne, Inc....................... 46,755 35,719
2,633 Kerr-McGee Corp.............................. 146,834 132,144
24,000 Mobil Corp................................... 1,801,664 2,376,000
1,500 NICOR, Inc................................... 55,969 57,094
1,000 ONEOK, Inc................................... 31,760 31,750
1,100 People's Energy Corp. (with rights).......... 39,049 41,456
7,800 Phillips Petroleum Co........................ 344,049 392,438
2,600 Rowan Companies, Inc. (a).................... 51,970 47,938
65,900 Royal Dutch Petroleum Co. NY Shares 3,269,979 3,970,475
16,800 Schlumberger Ltd............................. 1,029,279 1,069,950
7,355 Sempra Energy................................ 182,803 166,407
7,700 Solectron Corp............................... 361,513 513,494
3,400 Sonat, Inc................................... 135,674 112,625
2,800 Sunoco, Inc.................................. 98,606 84,525
16,500 Texaco, Inc.................................. 909,140 1,031,250
7,792 Union Pacific Resources Group, Inc........... 158,018 127,107
7,400 Unocal Corp.................................. 275,181 293,225
9,500 USX-Marathon Group........................... 281,582 309,344
13,300 Williams Companies, Inc...................... 389,156 566,081
------------- -------------
19,460,790 23,370,633
------------- -------------
FINANCE - 15.76%
4,344 Aetna, Inc................................... 364,231 388,517
8,200 Aflac, Inc................................... 425,020 392,575
24,800 Allstate Corp................................ 961,561 889,700
13,800 American Express Co.......................... 1,190,756 1,795,725
7,710 American General Corp........................ 443,048 581,141
38,092 American International Group, Inc............ 2,958,721 4,459,145
5,400 AmSouth Bancorporation....................... 176,343 125,213
7,825 Aon Corp..................................... 292,751 322,781
22,412 Associates First Capital Corp. Class A....... 674,983 993,132
36,232 Banc One Corp................................ 1,737,342 2,158,069
53,594 Bank of America Corp......................... 3,303,907 3,929,110
23,400 Bank of New York Co., Inc.................... 636,295 858,488
9,100 BankBoston Corp.............................. 388,296 465,238
9,700 BB&T Corp.................................... 329,362 355,869
3,550 Bear Stearns Companies, Inc.................. 175,770 165,963
3,000 Block H & R, Inc............................. 119,372 150,000
6,100 Capital One Financial Corp................... 257,764 339,694
23,636 Cendant Corp. (a)............................ 570,141 484,538
26,000 Chase Manhattan Corp......................... 1,542,405 2,252,250
5,000 Chubb Corp................................... 325,236 347,500
6,200 CIGNA Corp................................... 386,125 551,800
5,100 Cincinnati Financial Corp.................... 215,689 191,569
103,736 Citigroup, Inc............................... 3,497,677 4,927,460
4,750 Comerica, Inc................................ 254,233 282,328
9,982 Conseco, Inc................................. 386,763 303,827
3,500 Countrywide Credit Industries, Inc........... 144,755 149,625
4,400 Equifax, Inc................................. 152,588 157,025
31,500 Fannie Mae................................... 1,733,326 2,153,813
8,225 Fifth Third Bancorp.......................... 417,243 547,477
29,770 First Union Corp............................. 1,469,186 1,399,190
20,700 Firstar Corp................................. 639,293 579,600
17,500 Fleet Financial Group, Inc................... 626,514 776,563
7,700 Franklin Resources, Inc...................... 367,318 312,813
21,400 Freddie Mac.................................. 922,079 1,241,200
1,700 Golden West Financial Corp................... 141,915 166,600
7,000 Hartford Financial Services Group, Inc. 336,684 408,188
14,773 Household International, Inc................. 562,828 699,871
</TABLE>
59
<PAGE>
FORTIS SERIES FUND, INC.
S & P 500 INDEX SERIES (CONTINUED)
Schedule of Investments
June 30, 1999 (Unaudited)
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------- -------------
<C> <S> <C> <C>
6,480 Huntington Bancshares, Inc................... $ 202,523 $ 226,800
5,400 J.P. Morgan & Co., Inc....................... 609,260 758,700
3,250 Jefferson-Pilot Corp......................... 179,044 215,109
13,800 KeyCorp...................................... 429,205 443,325
3,600 Lehman Brothers Holdings, Inc................ 201,768 224,100
6,200 Lincoln National Corp........................ 239,615 324,338
3,400 Loews Corp................................... 313,325 269,025
8,050 Marsh & McLennan Companies, Inc.............. 438,741 607,775
3,100 MBIA, Inc.................................... 194,106 200,725
24,675 MBNA Corp.................................... 496,089 755,672
16,000 Mellon Bank Corp............................. 448,066 582,000
4,900 Mercantile Bancorporation, Inc............... 259,379 279,913
11,300 Merrill Lynch & Co........................... 778,342 903,294
3,400 MGIC Investment Corp......................... 157,082 165,325
17,515 Morgan Stanley Dean Witter & Co.............. 1,104,115 1,795,288
9,800 National City Corp........................... 625,878 641,900
3,400 Northern Trust Corp.......................... 255,894 329,800
4,500 Paine Webber Group, Inc...................... 193,264 210,375
9,300 PNC Bank Corp................................ 448,627 535,913
2,200 Progressive Corp............................. 271,019 319,000
4,200 Provident Companies, Inc..................... 154,033 168,000
4,350 Providian Financial Corp..................... 200,890 406,725
1,300 Pulte Corp................................... 26,965 29,981
6,900 Regions Financial Corp....................... 248,861 265,219
3,200 Republic New York Corp....................... 165,671 218,200
4,200 SAFECO Corp.................................. 186,532 185,325
12,500 Schwab (Charles) Corp........................ 453,483 1,373,438
5,000 SLM Holding Corp............................. 233,360 229,063
5,100 SouthTrust Corp.............................. 204,288 195,713
7,058 St. Paul Companies, Inc...................... 258,107 224,533
4,900 State Street Corp............................ 303,914 418,338
5,300 Summit Bancorp............................... 248,518 221,606
9,900 SunTrust Banks, Inc.......................... 671,597 687,431
8,350 Synovus Financial Corp. (with rights)........ 183,155 165,956
4,200 Torchmark Corp............................... 138,167 143,325
3,800 Transamerica Corp............................ 208,649 285,000
4,400 Union Planters Corp.......................... 213,215 196,625
4,300 UNUM Corp.................................... 201,519 235,425
22,371 US Bancorp................................... 740,634 760,614
6,200 Wachovia Corp................................ 473,186 530,488
18,272 Washington Mutual, Inc....................... 716,513 646,372
50,800 Wells Fargo Co............................... 1,678,735 2,171,700
------------- -------------
44,882,854 55,851,051
------------- -------------
HEALTH CARE - 10.58%
46,700 Abbott Laboratories.......................... 1,727,072 2,124,850
2,000 Allergan, Inc................................ 100,649 222,000
3,100 ALZA Corp. (a)............................... 126,596 157,713
40,200 American Home Products Corp.................. 1,799,550 2,311,500
15,700 Amgen, Inc. (a).............................. 577,495 955,738
1,600 Bard (C.R.), Inc............................. 61,356 76,500
1,800 Bausch & Lomb, Inc........................... 85,122 137,700
9,000 Baxter International, Inc. (with rights)..... 502,684 545,625
7,700 Becton, Dickinson and Co..................... 230,589 231,000
3,500 Biomet, Inc.................................. 97,112 139,125
12,200 Boston Scientific Corp. (a).................. 367,015 536,038
61,000 Bristol-Myers Squibb Co...................... 2,893,618 4,296,688
8,400 Cardinal Health, Inc......................... 524,275 538,650
17,450 Columbia/HCA Healthcare Corp................. 479,016 398,078
9,300 Guidant Corp. (a)............................ 314,774 478,369
3,400 HCR Manor Care, Inc. (a)..................... 101,447 82,238
12,700 HEALTHSOUTH Corp. (a)........................ 277,559 189,706
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------- -------------
<C> <S> <C> <C>
5,100 Humana, Inc. (a)............................. $ 102,935 $ 65,981
9,700 IMS Health, Inc.............................. 228,463 303,125
41,300 Johnson & Johnson Co......................... 2,885,635 4,047,400
33,800 Lilly (Eli) & Co. (with rights).............. 2,136,199 2,420,925
2,200 Mallinckrodt, Inc............................ 72,991 80,025
17,900 Medtronic, Inc............................... 1,015,616 1,393,963
72,500 Merck & Co., Inc............................. 4,160,077 5,365,000
1,400 Millipore Corp............................... 50,193 56,788
39,800 Pfizer, Inc. (with rights)................... 3,306,336 4,368,050
15,600 Pharmacia & Upjohn, Inc...................... 677,004 886,275
45,200 Schering-Plough Corp......................... 1,619,083 2,395,600
2,600 St. Jude Medical, Inc. (a)................... 87,137 92,625
9,500 Tenet Healthcare Corp. (a)................... 262,486 176,344
5,300 United HealthCare Corp....................... 268,650 331,913
26,100 Warner-Lambert Co............................ 1,361,868 1,810,688
2,900 Watson Pharmaceuticals, Inc. (a)............. 129,054 101,681
2,100 Wellpoint Health Networks (a)................ 182,119 178,238
------------- -------------
28,811,775 37,496,139
------------- -------------
METAL & MINING - 0.74%
6,900 Alcan Aluminium Ltd.......................... 207,832 220,369
11,400 Alcoa, Inc................................... 448,809 705,375
1,200 ASARCO, Inc.................................. 31,462 22,575
12,000 Barrick Gold Corp............................ 253,058 232,500
7,100 Battle Mountain Gold Co...................... 37,863 17,306
4,000 Bethlehem Steel Corp. (a).................... 40,741 30,750
2,800 Cyprus Amax Minerals Co. (with rights) 50,434 42,525
5,000 Freeport-McMoRan Copper & Gold, Inc. (a)..... 105,211 89,688
8,000 Homestake Mining Co.......................... 91,697 65,500
5,900 Inco Ltd..................................... 118,569 106,200
8,689 Newell Rubbermaid, Inc....................... 344,336 404,039
5,101 Newmont Mining Corp.......................... 149,541 101,382
2,700 Nucor Corp................................... 133,771 128,081
1,800 Phelps Dodge Corp............................ 106,840 111,488
10,000 Placer Dome, Inc............................. 146,413 118,125
2,000 Reynolds Metals Co........................... 118,326 118,000
2,700 USX-US Steel Group........................... 81,055 72,900
2,800 Worthington Industries, Inc.................. 48,431 46,025
------------- -------------
2,514,389 2,632,828
------------- -------------
TRANSPORTATION - 0.88%
4,700 AMR Corp. (a)................................ 288,349 320,775
14,400 Burlington Northern Santa Fe Corp............ 450,821 446,400
6,700 CSX Corp. (with rights)...................... 325,763 303,594
4,300 Delta Air Lines, Inc......................... 231,377 247,788
9,160 FDX Corp. (a)................................ 306,325 496,930
10,100 Laidlaw, Inc................................. 118,214 74,488
11,700 Norfolk Southern Corp........................ 365,170 352,463
10,325 Southwest Airlines Co........................ 192,703 321,366
7,600 Union Pacific Corp........................... 426,511 443,175
2,300 US Airways Group, Inc. (a)................... 130,307 100,194
------------- -------------
2,835,540 3,107,173
------------- -------------
UTILITIES - 10.17%
5,900 AES Corp. (a)................................ 232,133 342,938
8,600 ALLTEL Corp.................................. 391,149 614,900
4,200 Ameren Corp.................................. 162,510 161,175
5,900 American Electric Power Co., Inc............. 262,552 221,619
33,800 Ameritech Corp............................... 1,462,790 2,484,300
97,703 AT&T Corp.................................... 3,647,166 5,453,021
47,718 Bell Atlantic Corp........................... 2,089,621 3,119,564
58,200 BellSouth Corp............................... 1,803,562 2,728,125
</TABLE>
60
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------- -------------
<C> <S> <C> <C>
4,600 Carolina Power & Light Co.................... $ 178,652 $ 196,938
6,500 Central & South West Corp.................... 164,834 151,938
4,300 Centurytel, Inc.............................. 193,754 170,925
4,900 Cinergy Corp................................. 162,622 156,800
7,000 Consolidated Edison, Inc..................... 275,175 316,750
5,900 Dominion Resources, Inc...................... 235,603 255,544
4,500 DTE Energy Co................................ 160,129 180,000
11,153 Duke Energy Corp............................. 588,927 606,444
10,700 Edison International......................... 264,857 286,225
7,600 Entergy Corp................................. 207,500 237,500
7,200 FirstEnergy Corp............................. 194,995 223,200
2,900 Florida Progress Corp........................ 122,402 119,806
5,500 FPL Group, Inc............................... 298,305 300,438
5,300 Frontier Corp................................ 155,406 312,700
3,900 GPU, Inc..................................... 146,915 164,531
29,800 GTE Corp..................................... 1,576,335 2,257,350
57,124 MCI WorldCom, Inc. (a)....................... 2,780,207 4,926,945
3,500 New Century Energies, Inc.................... 163,696 135,844
9,100 Nextel Communications, Inc. Class A (a)...... 289,258 456,706
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------- -------------
<C> <S> <C> <C>
5,800 Niagara Mohawk Holdings, Inc................. $ 74,599 $ 93,163
4,700 Northern States Power Co..................... 122,162 113,681
9,100 PacifiCorp................................... 193,978 167,213
5,900 PECO Energy Co............................... 171,884 247,063
11,800 PG&E Corp.................................... 334,514 383,500
4,800 PP&L Resources, Inc.......................... 115,645 147,600
6,700 Public Service Enterprise Group, Inc......... 209,227 273,863
9,074 Reliant Energy, Inc.......................... 230,370 250,669
60,302 SBC Communications, Inc...................... 2,314,114 3,497,516
21,400 Southern Co.................................. 529,598 567,100
13,550 Sprint Corp (PCS Group) (a).................. 286,631 774,044
26,800 Sprint Corp. (FON Group)..................... 804,513 1,415,375
8,602 Texas Utilities Co........................... 353,976 354,833
6,700 Unicom Corp.................................. 207,330 258,369
15,419 US WEST, Inc................................. 696,346 905,866
------------- -------------
24,855,942 36,032,081
------------- -------------
TOTAL COMMON STOCKS.......................... $ 258,313,402 $ 345,108,576
------------- -------------
------------- -------------
</TABLE>
SHORT-TERM INVESTMENTS - 1.83%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
----------- -------------
<C> <S> <C>
BANKS - 1.64%
$5,827,727 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 4.91%........ $ 5,827,727
-------------
U.S. TREASURY BILLS - 0.19%
670,000 US Treasury Bill, 4.66% 9-16-1999 (e)........ 663,422
-------------
TOTAL SHORT-TERM INVESTMENTS................. 6,491,149
-------------
-------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$264,804,551) (b).......................... $ 351,599,725
-------------
-------------
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 1999, the cost of securities for federal income tax purposes
was $264,924,697 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation.......................................... $95,679,656
Unrealized depreciation.......................................... (9,004,628)
- -----------------------------------------------------------------------------
Net unrealized appreciation...................................... $86,675,028
- -----------------------------------------------------------------------------
</TABLE>
(c) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets. Market value of investments in foreign
securities represents 1.95% of total net assets as of June 30, 1999.
(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 6/30/99
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
September
Standard & Poor's 500....................................... 27 $9,326,475 99 $ 247,700
</TABLE>
61
<PAGE>
FORTIS SERIES FUND, INC.
BLUE CHIP STOCK SERIES
Schedule of Investments
June 30, 1999 (Unaudited)
COMMON STOCKS-97.45%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
-------- ------------- -------------
<C> <S> <C> <C>
AEROSPACE AND EQUIPMENT - 1.78%
60,200 AlliedSignal, Inc............................ $ 2,486,073 $ 3,792,600
8,000 Raytheon Co. Class B......................... 436,101 563,000
------------- -------------
2,922,174 4,355,600
------------- -------------
APPAREL - 0.14%
12,600 Warnaco Group, Inc........................... 470,434 337,050
------------- -------------
BANKS - 6.61%
43,600 Bank of America Corp......................... 2,930,918 3,196,425
69,600 Bank of New York Company, Inc................ 2,245,852 2,553,450
4,190 Bank One Corp................................ 240,560 249,567
20,100 Chase Manhattan Corp......................... 1,201,371 1,741,162
16,800 Firstar Corp................................. 469,058 470,400
73,400 Mellon Bank Corp............................. 2,118,959 2,669,925
11,200 State Street Corp............................ 855,664 956,200
100,800 Wells Fargo Co............................... 3,339,425 4,309,200
------------- -------------
13,401,807 16,146,329
------------- -------------
BEVERAGE - 1.00%
5,700 Coca-Cola Co................................. 346,573 356,250
54,100 PepsiCo, Inc................................. 1,925,516 2,092,994
------------- -------------
2,272,089 2,449,244
------------- -------------
BIOMEDICS, GENETICS RESEARCH AND DEVELOPMENT
- 0.85%
13,200 Amgen, Inc. (a) (with rights)................ 818,993 803,550
19,800 Biogen, Inc. (a)............................. 649,412 1,273,387
------------- -------------
1,468,405 2,076,937
------------- -------------
BROADCASTING - 0.58%
52,900 Fox Entertainment Group Class A.............. 1,337,220 1,424,994
------------- -------------
BROKERAGE AND INVESTMENT - 0.15%
5,000 Goldman Sachs Group, Inc..................... 265,000 361,250
------------- -------------
BUILDING MATERIALS - 0.55%
46,900 Masco Corp................................... 1,195,341 1,354,237
------------- -------------
BUSINESS SERVICES - 6.50%
41,400 Automatic Data Processing, Inc............... 1,228,272 1,821,600
16,800 Ceridian Corp. (a)........................... 540,663 549,150
10,500 Equifax, Inc................................. 403,128 374,719
43,800 First Data Corp.............................. 1,564,557 2,143,462
26,500 Galileo International, Inc................... 951,985 1,416,094
16,700 IMS Health, Inc.............................. 461,980 521,875
28,000 Omnicom Group, Inc........................... 1,347,754 2,240,000
71,886 Tyco International Ltd....................... 3,563,150 6,811,198
------------- -------------
10,061,489 15,878,098
------------- -------------
CABLE TELEVISION - 1.04%
34,200 MediaOne Group, Inc. (a)..................... 1,844,390 2,543,625
------------- -------------
CHEMICALS - 0.34%
18,200 Great Lakes Chemical Corp. (with rights)..... 793,240 838,337
------------- -------------
COMPUTER-COMMUNICATION EQUIPMENT - 2.23%
41,250 Cisco Systems, Inc. (a)...................... 973,002 2,660,625
39,200 Dell Computer Corp. (a)...................... 1,120,120 1,450,400
19,600 Sun Microsystems, Inc. (a)................... 719,959 1,349,950
------------- -------------
2,813,081 5,460,975
------------- -------------
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------- -------------
<C> <S> <C> <C>
COMPUTER-SOFTWARE - 6.11%
17,200 America Online, Inc. (a)..................... $ 571,983 $ 1,900,600
53,400 BMC Software, Inc. (a)....................... 1,940,334 2,883,600
39,900 Compuware Corp. (a).......................... 1,287,255 1,269,319
72,800 Microsoft Corp. (a).......................... 3,750,941 6,565,650
16,700 Oracle Corp. (a)............................. 537,684 619,987
61,500 Parametric Technology Corp. (a).............. 831,981 853,312
24,300 SunGard Data Systems, Inc. (a)............... 626,938 838,350
------------- -------------
9,547,116 14,930,818
------------- -------------
CONSUMER GOODS - 1.07%
8,400 Colgate-Palmolive Co......................... 686,762 829,500
31,300 Kimberly-Clark Corp.......................... 1,603,070 1,784,100
------------- -------------
2,289,832 2,613,600
------------- -------------
COSMETICS AND SUNDRIES - 0.26%
15,500 Gillette Co.................................. 743,052 635,500
------------- -------------
DIVERSIFIED COMPANIES - 0.23%
8 Berkshire Hathaway, Inc. Class A............. 507,013 551,200
4 Berkshire Hathaway, Inc. Class B............. 8,941 8,996
------------- -------------
515,954 560,196
------------- -------------
DRUGS - 9.90%
39,200 American Home Products Corp.................. 1,870,611 2,254,000
65,500 Bristol-Myers Squibb Co...................... 3,552,118 4,613,656
30,200 Eli Lilly & Co............................... 2,214,989 2,163,075
26,300 Johnson & Johnson............................ 1,953,467 2,577,400
45,500 Merck & Co., Inc............................. 2,718,447 3,367,000
32,000 Pfizer, Inc. (with rights)................... 2,746,596 3,512,000
45,900 Schering-Plough Corp......................... 1,703,509 2,432,700
47,000 Warner-Lambert Co............................ 2,640,349 3,260,625
------------- -------------
19,400,086 24,180,456
------------- -------------
ELECTRICAL EQUIPMENT - 1.48%
31,900 General Electric Co.......................... 2,545,000 3,604,700
------------- -------------
ELECTRICAL-COMPONENTS AND
PARTS - 0.23%
8,200 Linear Technology Corp....................... 234,849 551,450
------------- -------------
ELECTRONIC COMPONENTS - 0.43%
15,800 Solectron Corp. (a).......................... 703,756 1,053,662
------------- -------------
ELECTRONIC-CONTROLS AND
EQUIPMENT - 1.86%
20,900 Applied Materials, Inc. (a).................. 1,272,621 1,543,987
29,800 Hewlett-Packard Co........................... 2,033,334 2,994,900
------------- -------------
3,305,955 4,538,887
------------- -------------
ELECTRONIC-SEMICONDUCTOR AND CAPACITOR -
4.20%
21,800 Altera Corp. (a)............................. 670,714 802,512
57,800 Intel Corp................................... 2,893,743 3,439,100
22,700 Maxim Integrated Products, Inc. (a).......... 649,018 1,509,550
11,800 Motorola, Inc................................ 1,044,392 1,118,050
15,000 Texas Instruments, Inc....................... 1,177,673 2,175,000
21,300 Xilinx, Inc. (a)............................. 647,584 1,219,425
------------- -------------
7,083,124 10,263,637
------------- -------------
FINANCIAL SERVICES - 11.28%
20,700 American Express Co.......................... 2,040,363 2,693,587
43,400 Associates First Capital Corp. Class A....... 1,672,188 1,923,163
25,100 Block H & R, Inc............................. 1,001,252 1,255,000
</TABLE>
62
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------- -------------
<C> <S> <C> <C>
35,800 Capital One Financial Corp................... $ 1,173,197 $ 1,993,613
148,673 Citigroup, Inc............................... 5,098,098 7,061,968
16,900 Concord EFS, Inc. (a)........................ 573,014 715,081
43,300 Fannie Mae................................... 2,469,013 2,960,638
99,900 Freddie Mac.................................. 4,831,440 5,794,200
21,400 Marsh & McLennan Companies, Inc.............. 1,368,075 1,615,700
13,600 Morgan Stanley Dean Witter & Co.............. 936,511 1,394,000
6,100 TD Waterhouse Group, Inc. (a)................ 146,400 152,881
------------- -------------
21,309,551 27,559,831
------------- -------------
FOOD - 1.94%
20,100 Heinz (H.J.) Co.............................. 981,747 1,007,513
64,700 Safeway, Inc. (a)............................ 2,345,657 3,202,650
12,570 U.S. Foodservice (a)......................... 446,863 535,796
------------- -------------
3,774,267 4,745,959
------------- -------------
GLASS AND GLASS PRODUCTS,
POTTERY - 0.72%
25,000 Corning, Inc................................. 1,333,422 1,753,125
------------- -------------
HEALTH CARE SERVICES - 2.25%
20,585 Cardinal Health, Inc......................... 1,286,444 1,320,013
55,800 United HealthCare Corp....................... 2,873,460 3,494,475
8,100 Wellpoint Health Networks, Inc. (a).......... 657,198 687,488
------------- -------------
4,817,102 5,501,976
------------- -------------
HOUSEHOLD PRODUCTS - 0.52%
14,200 Procter & Gamble Co.......................... 1,176,907 1,267,350
------------- -------------
INSURANCE - 3.34%
45,300 Ace Ltd...................................... 1,262,122 1,279,725
14,000 Aetna, Inc................................... 1,288,826 1,252,125
7,000 American International Group, Inc............ 733,403 819,438
7,100 CIGNA Corp................................... 607,947 631,900
2,600 Fairfax Financial Holdings Ltd (f)........... 844,704 659,178
26,500 Travelers Property Casualty Corp. Class A.... 973,595 1,036,813
18,200 UNUM Corp.................................... 964,102 996,450
26,176 XL Capital Limited Class A................... 1,574,137 1,478,944
------------- -------------
8,248,836 8,154,573
------------- -------------
LEISURE TIME-AMUSEMENTS - 0.44%
15,600 Carnival Corp................................ 479,593 756,600
10,500 Disney (Walt) Co............................. 393,464 323,531
------------- -------------
873,057 1,080,131
------------- -------------
MACHINERY-OIL AND WELL - 0.56%
30,500 Halliburton Co............................... 1,178,935 1,380,125
------------- -------------
MACHINERY-TOOLS - 1.73%
49,200 Danaher Corp................................. 1,568,676 2,859,750
16,500 SPX Corp..................................... 1,067,184 1,377,750
------------- -------------
2,635,860 4,237,500
------------- -------------
MEDIA - 4.00%
69,600 CBS Corp. (a)................................ 2,188,957 3,023,250
25,200 Clear Channel Communications, Inc. (a)....... 1,456,497 1,737,225
55,300 Infinity Broadcasting Corp. (a).............. 1,187,372 1,645,175
45,800 Time Warner, Inc............................. 1,851,258 3,366,300
------------- -------------
6,684,084 9,771,950
------------- -------------
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------- -------------
<C> <S> <C> <C>
MEDICAL SUPPLIES - 0.32%
12,700 Baxter International, Inc. (with rights)..... $ 853,860 $ 769,938
------------- -------------
MEDICAL TECHNOLOGY - 0.56%
29,100 Boston Scientific Corp. (a).................. 1,196,030 1,278,581
1,000 Medtronic, Inc. (with rights)................ 68,333 77,875
------------- -------------
1,264,363 1,356,456
------------- -------------
METALS-FABRICATING - 0.18%
9,600 Newell Rubbermaid Inc........................ 434,283 446,400
------------- -------------
OFFICE EQUIPMENT AND
SUPPLIES - 1.10%
25,000 EMC Corp. (a)................................ 538,094 1,375,000
10,200 International Business Machines Corp. 633,493 1,318,350
------------- -------------
1,171,587 2,693,350
------------- -------------
OIL-CRUDE PETROLEUM AND GAS - 2.63%
4,200 Amerada Hess Corporation..................... 259,537 249,900
15,700 BP Amoco plc ADR............................. 1,370,058 1,703,450
17,800 Chevron Corp................................. 1,552,379 1,694,338
28,100 Mobil Corp................................... 2,111,943 2,781,900
------------- -------------
5,293,917 6,429,588
------------- -------------
PHOTOGRAPHIC - 0.27%
9,600 Eastman Kodak Co............................. 712,735 650,400
------------- -------------
PUBLISHING - 0.56%
15,700 Tribune Co................................... 1,033,482 1,367,863
------------- -------------
REAL ESTATE-INVESTMENT TRUST - 0.56%
44,500 Starwood Hotels & Resorts Worldwide, Inc..... 1,531,684 1,360,031
------------- -------------
RESTAURANTS AND FRANCHISING - 0.74%
43,600 McDonald's Corp.............................. 1,366,642 1,801,225
------------- -------------
RETAIL-DEPARTMENT STORES - 0.92%
14,100 Dayton Hudson Corp........................... 776,148 916,500
6,700 Federated Department Stores, Inc. (a) 365,566 354,681
34,100 Saks, Inc. (a)............................... 939,881 984,638
------------- -------------
2,081,595 2,255,819
------------- -------------
RETAIL-DISCOUNT STORES - 1.15%
58,100 Wal-Mart Stores, Inc......................... 1,503,547 2,803,325
------------- -------------
RETAIL-GROCERY - 1.05%
91,600 Kroger Co. (a)............................... 2,162,210 2,559,075
------------- -------------
RETAIL-MISCELLANEOUS - 1.01%
48,142 CVS Corp..................................... 1,661,628 2,461,260
------------- -------------
RETAIL-SPECIALTY - 1.16%
20,600 Cendant Corp. (a)............................ 638,027 422,300
37,600 Home Depot, Inc.............................. 1,399,344 2,422,850
------------- -------------
2,037,371 2,845,150
------------- -------------
SHOES AND LEATHER - 0.60%
23,100 Nike, Inc. Class B........................... 1,393,122 1,462,519
------------- -------------
TELECOMMUNICATION
EQUIPMENT - 0.94%
13,400 Nokia Oyj Corp. ADR Class A.................. 421,935 1,226,938
16,000 Tellabs, Inc. (a)............................ 596,961 1,081,000
------------- -------------
1,018,896 2,307,938
------------- -------------
</TABLE>
63
<PAGE>
FORTIS SERIES FUND, INC.
BLUE CHIP STOCK SERIES (CONTINUED)
Schedule of Investments
June 30, 1999 (Unaudited)
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------- -------------
<C> <S> <C> <C>
TELECOMMUNICATIONS - 1.06%
34,980 Lucent Technologies, Inc..................... $ 1,576,079 $ 2,358,964
7,300 Qwest Communications International, Inc.
(a)........................................ 261,435 241,356
------------- -------------
1,837,514 2,600,320
------------- -------------
TELEPHONE SERVICES - 5.21%
20,300 ALLTEL Corp.................................. 854,559 1,451,450
12,600 GTE Corp..................................... 757,303 954,450
69,731 MCI WorldCom, Inc. (a)....................... 3,140,655 6,014,299
29,400 SBC Communications, Inc...................... 1,316,186 1,705,200
8,300 Sprint Corp.................................. 457,509 438,344
10,100 Vodafone AirTouch plc ADR.................... 1,203,019 2,174,657
------------- -------------
7,729,231 12,738,400
------------- -------------
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------- -------------
<C> <S> <C> <C>
TOBACCO - 0.87%
52,900 Philip Morris Companies, Inc................. $ 2,245,084 $ 2,125,919
------------- -------------
TOYS - 0.90%
45,100 Hasbro, Inc.................................. 1,111,846 1,259,981
35,140 Mattel, Inc.................................. 834,150 929,014
------------- -------------
1,945,996 2,188,995
------------- -------------
WASTE DISPOSAL - 1.34%
61,000 Waste Management, Inc........................ 2,895,430 3,278,750
------------- -------------
TOTAL COMMON STOCKS.......................... $ 179,419,592 $ 238,114,823
------------- -------------
------------- -------------
</TABLE>
SHORT-TERM INVESTMENTS - 2.91%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
----------- -------------
<C> <S> <C>
BANKS - 0.81%
$1,000,000 CBA (Delaware) Finance, Inc. 4.93%
11-10-1999................................. $ 980,640
1,000,000 Nordbanken North America, Inc. 4.82%
8-10-1999.................................. 994,510
-------------
1,975,150
-------------
DIVERSIFIED FINANCE - 0.41%
1,000,000 Merita North America, Inc. 4.83% 7-13-1999... 998,256
-------------
FINANCIAL SERVICES - 0.81%
1,000,000 Repeat Offering Securitisation Entity (Rose),
Inc. 4.82% 7-13-1999 (e)................... 996,385
1,000,000 Repsol International Finance BV 4.85%
7-15-1999.................................. 997,979
-------------
1,994,364
-------------
INSURANCE - 0.40%
1,000,000 New York Life Capital Corp. 5.00% 11-16-1999
(e)........................................ 979,767
-------------
INVESTMENT COMPANY - 0.48%
1,180,566 First American Prime Obligation Fund, Current
rate -- 4.66%.............................. 1,180,566
-------------
TOTAL SHORT-TERM INVESTMENTS................. 7,128,103
-------------
-------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$186,547,695) (b).......................... $ 245,242,926
-------------
-------------
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 1999, the cost of securities for federal income tax purposes
was $186,978,955 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $59,718,531
Unrealized depreciation..................................... (1,454,560)
- -------------------------------------------------------------------------
Net unrealized appreciation................................. $58,263,971
- -------------------------------------------------------------------------
</TABLE>
(c) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets. Market value of investments in foreign
securities represents 2.36% of total net assets as of June 30, 1999.
(e) Commercial paper sold within the terms of a private placement memorandum,
exempt from registration under Section 4(2) of the Securities Act of 1933,
as amended, and may be sold only to dealers in that program or to other
"accredited investors". These securities have been determined to be
illiquid under the guidelines established by the Board of Directors. The
aggregate value of these securities at June 30, 1999, was $1,976,152, which
represents 0.81% of total net assets.
(f) Securities sold within the terms of a private placement memorandum exempt
from registration under Section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or to other
"accredited investors". This investment has been identified by portfolio
management as an illiquid security. The portfolio entered into the
following Section 144A security transaction:
<TABLE>
<CAPTION>
Period Acquired Shares/Par Security Cost Basis
- ---------------- ------------- -------------------------------------------------------------------------------- -----------
<S> <C> <C> <C>
1998 2,600 Fairfax Financial Holdings Ltd. $ 844,704
</TABLE>
The aggregate value of this security at June 30, 1999, was $659,178,
which represents 0.27% of total net assets.
64
<PAGE>
FORTIS SERIES FUND, INC.
INTERNATIONAL STOCK SERIES
Schedule of Investments
June 30, 1999 (Unaudited)
COMMON STOCKS-96.23%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
------------ ------------ -------------
<C> <S> <C> <C>
AUSTRALIA-2.34%
181,170 Broken Hill Proprietary Co. Ltd. -- STEEL AND
IRON....................................... $ 1,691,726 $ 2,098,538
85,400 Westpac Banking Corp. Ltd. -- BANKS.......... 472,427 553,957
------------ -------------
2,164,153 2,652,495
------------ -------------
DENMARK-0.65%
11,000 Unidanmark A/S Class A -- BANKS.............. 598,766 734,149
------------ -------------
FINLAND-0.95%
76,800 Merita plc Class A -- BANKS.................. 393,689 436,413
22,500 UPM-Kymmene Corp. -- PAPER................... 515,520 645,078
------------ -------------
909,209 1,081,491
------------ -------------
FRANCE-13.43%
10,610 Alcatel -- TELECOMMUNICATIONS................ 1,002,308 1,493,596
12,800 Axa -- INSURANCE............................. 892,720 1,561,636
24,500 Banque Nationale de Paris -- BANKS........... 1,218,230 2,041,561
10,610 Compagnie de Saint Gobain -- BUILDING
MATERIALS.................................. 1,457,858 1,690,553
13,700 Elf Aquitaine S.A. -- OIL-CRUDE PETROLEUM AND
GAS........................................ 1,480,904 2,010,530
20,900 Michelin (C.G.D.E.) Class B -- RUBBER AND
PLASTIC.................................... 1,182,683 855,054
31,788 Rhone -- POULENC S.A. -- BUILDING
MATERIALS.................................. 1,131,963 1,452,613
8,000 Suez Lyonnaise des Eaux -- UTILITIES-WATER
AND SEWER.................................. 1,053,361 1,442,995
33,054 Vivendi -- TELECOMMUNICATIONS................ 1,459,282 2,677,659
------------ -------------
10,879,309 15,226,197
------------ -------------
GERMANY-9.14%
4,038 Allianz AG -- INSURANCE...................... 1,365,524 1,128,549
16,469 DaimlerChrysler AG (a) -- AUTOMOBILE
MANUFACTURERS.............................. 1,119,042 1,438,585
11,100 Deutsche Telekom AG -- TELECOMMUNICATIONS.... 502,175 466,483
11,100 Deutsche Telekom AG
Rights -- TELECOMMUNICATIONS............... 2,836 2,175
36,800 Hoechst AG -- CHEMICALS...................... 1,355,099 1,658,495
27,874 Metro AG -- CONSUMER GOODS................... 1,449,693 1,773,656
24,800 Siemens AG -- UTILITIES-ELECTRIC............. 1,818,583 1,913,103
37,000 Thyssen Krupp AG -- BUILDING MATERIALS....... 747,065 810,860
19,800 Veba AG -- UTILITIES-ELECTRIC................ 1,041,015 1,168,009
------------ -------------
9,401,032 10,359,915
------------ -------------
HONG KONG-1.28%
39,605 HSBC Holdings plc -- BANKS................... 988,682 1,444,562
------------ -------------
ITALY-4.14%
238,900 ENI S.p.A. -- OIL-REFINING................... 1,342,480 1,426,526
90,000 San Paolo IMI S.p.A. -- BANKS................ 1,423,648 1,225,184
376,300 Telecom Italia S.p.A -- TELEPHONE SERVICES... 1,559,689 2,041,291
------------ -------------
4,325,817 4,693,001
------------ -------------
JAPAN-22.68%
89,000 Asahi Breweries Ltd. -- BEVERAGE............. 1,147,178 1,107,353
61,000 Canon, Inc. -- OFFICE EQUIPMENT AND
SUPPLIES................................... 1,616,227 1,753,800
77,000 Fuji Bank Ltd. -- BANKS...................... 570,663 536,913
149,000 Industrial Bank of Japan Ltd. -- BANKS....... 1,210,553 1,181,758
192 Japan Tobacco, Inc. -- TOBACCO............... 1,464,834 2,125,578
51,000 Kao Corp. -- HOUSEHOLD PRODUCTS.............. 1,048,570 1,432,584
9,000 Nintendo Co. Ltd. -- TOYS.................... 741,433 1,264,788
114 Nippon Telegraph & Telephone
Corp. -- TELEPHONE SERVICES................ 1,000,665 1,327,991
386,000 Nissan Motor Co. Ltd. -- AUTOMOBILE
MANUFACTURERS.............................. 1,441,320 1,843,258
190 NTT Mobile Communications Network,
Inc. -- TELECOMMUNICATIONS................. 1,371,415 2,574,356
22,800 Orix Corp. -- LEASING........................ 1,023,958 2,034,369
22,100 Promise Co. Ltd. -- FINANCIAL SERVICES....... 1,002,922 1,305,478
46,000 Ricoh Co. Ltd. -- OFFICE EQUIPMENT AND
SUPPLIES................................... 430,661 633,146
47,000 Sankyo Co. Ltd. -- DRUGS..................... 1,023,561 1,184,319
</TABLE>
65
<PAGE>
FORTIS SERIES FUND, INC.
INTERNATIONAL STOCK SERIES (CONTINUED)
Schedule of Investments
June 30, 1999 (Unaudited)
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------------ ------------ -------------
<C> <S> <C> <C>
18,200 Sony Corp. -- ELECTRONIC COMPONENTS.......... $ 1,271,976 $ 1,962,244
394,000 Sumitomo Trust & Banking Co. -- BANKS........ 2,441,772 1,894,481
17,000 TDK Corp. -- ELECTRONIC COMPONENTS........... 1,483,031 1,554,775
------------ -------------
20,290,739 25,717,191
------------ -------------
MALAYSIA-0.44%
145,000 Genting Berhad -- LEISURE TIME-AMUSEMENTSE
(E)........................................ 590,817 498,223
------------ -------------
NETHERLANDS-4.23%
31,350 Heineken N.V. -- BEVERAGE.................... 990,739 1,605,247
29,100 ING Groep N.V. -- INSURANCE.................. 1,593,982 1,575,568
16,376 Koninklijke (Royal) Philips Electronics
NV -- ELECTRIC-PRODUCTS.................... 929,703 1,615,392
------------ -------------
3,514,424 4,796,207
------------ -------------
SINGAPORE-1.72%
80,000 Oversea-Chinese Banking Corp.
Ltd. -- BANKS.............................. 599,161 667,254
184,000 United Overseas Bank Ltd. -- BANKS........... 945,171 1,286,109
------------ -------------
1,544,332 1,953,363
------------ -------------
SPAIN-5.12%
80,400 Argentaria S.A. -- BANKS..................... 1,462,082 1,831,626
55,500 Endesa S.A. -- ELECTRIC-PRODUCTS............. 1,371,967 1,183,664
57,922 Telefonica S.A. -- TELECOMMUNICATIONS........ 1,595,476 2,790,229
------------ -------------
4,429,525 5,805,519
------------ -------------
SWEDEN-5.06%
104,200 ABB AB Class A -- ELECTRONIC-CONTROLS AND
EQUIPMENT.................................. 1,646,168 1,384,921
70,300 Electrolux AB Class B -- HOUSEHOLD
PRODUCTS................................... 971,529 1,471,818
73,300 Nordbanken Holding AB -- BANKS............... 406,791 428,489
109,200 Svenska Handelsbanken Class A -- BANKS....... 880,764 1,310,092
39,500 Volvo AB Class B -- AUTOMOBILE
MANUFACTURERS.............................. 1,195,610 1,145,231
------------ -------------
5,100,862 5,740,551
------------ -------------
SWITZERLAND-3.73%
548 Nestle S.A. -- FOOD.......................... 680,320 987,359
135 Roche Holding AG -- DRUGS.................... 1,607,237 1,387,688
810 S.M.H. AG -- MISCELLANEOUS................... 457,808 545,002
2,310 Zurich Allied AG -- INSURANCE................ 970,466 1,313,547
------------ -------------
3,715,831 4,233,596
------------ -------------
UNITED KINGDOM-21.32%
70,200 Allied Zurich plc (a) -- INSURANCE........... 813,014 876,951
42,664 Astrazeneca plc -- DRUGS..................... 1,466,970 1,653,031
96,000 BP Amoco plc -- OIL-MISCELLANEOUS............ 1,347,887 1,719,050
357,332 British Aerospace plc -- AEROSPACE AND
EQUIPMENT.................................. 1,601,316 2,336,131
169,000 British American Tobacco plc -- TOBACCO...... 1,266,568 1,577,057
88,620 Cadbury Schweppes plc -- FOOD................ 387,829 564,355
148,214 Diageo plc -- RETAIL-DEPARTMENT STORES....... 1,268,116 1,544,293
103,600 Granada Group plc -- DIVERSIFIED COMPANIES... 1,572,110 1,933,527
107,200 Great Universal Stores
plc -- RETAIL-CLOTHING..................... 1,304,408 1,198,909
154,900 Imperial Chemical Industries
plc -- CHEMICALS........................... 1,923,876 1,530,939
352,400 Invensys plc -- DIVERSIFIED COMPANIES........ 1,432,541 1,669,242
103,500 National Westminster Bank plc -- BANKS....... 1,539,102 2,192,696
130,900 Prudential Corp. plc -- INSURANCE............ 1,570,741 1,937,511
172,364 Royal & Sun Alliance Insurance Group
plc -- INSURANCE........................... 1,878,124 1,550,030
72,700 Smithkline Beecham plc -- DRUGS.............. 1,005,311 943,706
106,696 Unilever plc -- CONSUMER GOODS............... 826,020 949,408
------------ -------------
21,203,933 24,176,836
------------ -------------
TOTAL COMMON STOCKS.......................... $89,657,431 $ 109,113,296
------------ -------------
------------ -------------
</TABLE>
66
<PAGE>
SHORT-TERM INVESTMENTS-3.17%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
----------- -------------
<C> <S> <C>
BANKS-3.17%
$3,596,096 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 4.80%........ $ 3,596,096
-------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$93,253,527) (b)........................... $ 112,709,392
-------------
-------------
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 1999, the cost of securities for federal income tax purposes
was $93,268,002 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation.......................................... $22,609,092
Unrealized depreciation.......................................... (3,167,702)
- ------------------------------------------------------------------------------
Net unrealized appreciation...................................... $19,441,390
- ------------------------------------------------------------------------------
</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 market value to total net assets.
(e) Note: Securities sold within the terms of a private placement memorandum,
exempt from registration under Section 144A of the Securities Act of 1933,
as amended, and may be sold only to dealers in that program or to other
"accredited investors". These investments have been identified by portfolio
management as illiquid securities:
<TABLE>
<CAPTION>
Year Acquired Shares/Par Security Cost Basis
- ---------------- ---------------------------------------------------- -------------
<S> <C> <C> <C>
1997, 1998 145,000 Genting Berhad $ 590,817
</TABLE>
The aggregate value of these securities at June 30, 1999, was $498,223,
which represents .44% of total net assets.
67
<PAGE>
FORTIS SERIES FUND, INC.
MID CAP STOCK SERIES
Schedule of Investments
June 30, 1999 (Unaudited)
COMMON STOCKS-95.95%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
------- ------------ ------------
<C> <S> <C> <C>
BASIC INDUSTRY - 6.19%
5,700 Caraustar Industries, Inc.................... $ 159,844 $ 140,719
2,500 Centex Construction Products, Inc............ 95,124 85,312
6,500 Crompton & Knowles Corp...................... 146,138 127,156
4,200 Cytec Industries, Inc. (a)................... 147,330 133,875
1,700 FMC Corp..................................... 91,877 116,131
3,700 Lennar Corp. (a)............................. 84,408 88,800
6,800 Louisiana-Pacific Corp. (a).................. 145,366 161,500
5,300 Solutia, Inc................................. 125,593 112,956
3,300 TOSCO Corp................................... 74,682 85,594
2,400 Vulcan Materials Co.......................... 103,769 115,800
------------ ------------
1,174,131 1,167,843
------------ ------------
CAPITAL SPENDING - 33.83%
10,300 Altera Corp. (a)............................. 247,689 379,169
7,300 American Power Conversion Corp. (a).......... 133,686 146,912
2,200 Apple Computer, Inc. (a)..................... 82,889 101,887
3,500 BMC Software, Inc. (a)....................... 166,118 189,000
2,000 Briggs & Stratton (a)........................ 123,321 115,500
1,600 BroadVison, Inc. (a)......................... 81,714 118,000
3,800 Citrix Systems, Inc. (a)..................... 172,143 214,700
1,100 CNET, Inc.................................... 65,458 63,387
2,800 Computer Task Group, Inc..................... 78,876 47,600
4,900 Compuware Corp. (a).......................... 138,883 155,881
2,400 Comverse Technology, Inc. (a)................ 181,232 181,200
5,700 Convergys Corp............................... 113,730 109,725
4,500 Crane Co..................................... 132,272 141,469
1,400 DST Systems, Inc. (a)........................ 71,271 88,025
3,300 Gulfstream Aerospace Corp. (a)............... 156,954 222,956
4,200 Hertz Corp. Class A.......................... 194,835 260,400
3,000 Jabil Circuit, Inc. (a)...................... 103,267 135,375
1,600 Johnson Controls, Inc........................ 103,826 110,900
2,200 Legato Systems, Inc. (a)..................... 110,507 127,050
4,900 Leggett & Platt, Inc......................... 114,758 136,281
4,100 Lexmark International Group Class A (a)...... 181,815 270,856
5,700 Linear Technology Corp....................... 225,708 383,325
5,200 Maxim Integrated Products, Inc. (a).......... 222,973 345,800
4,300 NCR Corp. (a)................................ 165,054 209,894
1,200 Network Appliance, Inc. (a).................. 55,487 67,050
2,900 Premark International, Inc................... 92,349 108,750
5,000 Quintiles Transnational Corp. (a)............ 243,625 210,000
2,200 RF Micro Devices, Inc. (a)................... 118,034 164,175
2,600 Robert Half International, Inc............... 105,117 67,600
5,000 Sabre Group Holdings, Inc. (a)............... 217,619 343,750
2,800 Sanmina Corp. (a)............................ 172,378 212,450
2,400 Snyder Communications, Inc. (a).............. 83,419 78,600
4,200 Sterling Software, Inc. (a).................. 110,284 112,087
3,800 Trinity Industries, Inc...................... 127,219 127,300
1,500 Uniphase Corp. (a)........................... 208,031 249,000
1,004 United Technologies Corp..................... 53,922 71,974
800 VERITAS Software Corp. (a)................... 48,681 75,950
2,200 Waters Corp. (a)............................. 91,107 116,875
2,600 Young & Rubicam, Inc......................... 85,153 118,137
------------ ------------
5,181,404 6,378,990
------------ ------------
CONSUMER CYCLICAL - 14.92%
5,000 A.H. Belo Corp. Class A (a).................. 105,294 98,437
4,700 Abercrombie & Fitch Co. Class A (a).......... 156,028 225,600
1,900 Best Buy Co., Inc. (a)....................... 98,369 128,250
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ------------ ------------
<C> <S> <C> <C>
4,200 Bob Evans Farms (a).......................... $ 86,309 $ 83,475
3,800 Brinker International, Inc. (a).............. 106,256 103,312
1,200 Cox Radio, Inc. (a).......................... 62,913 65,100
3,500 Dollar Tree Stores, Inc. (a)................. 134,532 154,000
5,700 Furniture Brands International, Inc. (a)..... 153,946 158,887
1,600 Harley-Davidson, Inc......................... 78,743 87,000
3,500 Herman Miller, Inc........................... 86,292 73,500
4,700 International Game Technology................ 100,264 86,950
2,200 King World Productions, Inc. (a)............. 64,316 76,587
1,500 Knight Ridder, Inc........................... 78,806 82,406
700 Magna International, Inc. Class A............ 44,528 39,725
2,000 McClatchy Co. Class A........................ 67,447 66,250
3,700 Meritor Automotive, Inc...................... 76,268 94,350
3,100 Nautica Enterprises, Inc. (a)................ 65,148 52,313
2,000 Navistar International....................... 105,421 100,000
1,500 Pulitzer, Inc................................ 60,650 72,844
4,600 Ross Stores, Inc............................. 190,061 231,725
3,700 SUPERVALU, Inc............................... 94,727 95,044
8,300 TJX Companies, Inc........................... 217,429 276,494
2,000 U.S. Foodservice (a)......................... 93,413 85,250
2,800 V.F. Corp.................................... 131,923 119,700
3,900 Zale Corp. (a)............................... 124,633 156,000
------------ ------------
2,583,716 2,813,199
------------ ------------
CONSUMER STAPLES - 3.73%
4,200 Dial Corp.................................... 113,798 156,188
2,400 Earthgrains Co............................... 68,814 61,950
2,200 Estee Lauder Companies, Inc. Class A......... 79,034 110,275
2,900 Hormel Foods Corp............................ 105,299 116,725
3,000 Lancaster Colony Corp........................ 100,980 103,500
7,300 Universal Foods Corp......................... 172,207 154,213
------------ ------------
640,132 702,851
------------ ------------
ENERGY & RELATED - 6.70%
4,700 Diamond Offshore Drilling, Inc............... 141,598 133,363
3,900 El Paso Energy Corp.......................... 136,269 137,231
4,300 Keyspan Corp. (a)............................ 126,197 113,413
2,900 National Fuel Gas Co......................... 129,254 140,650
2,800 Nicor, Inc. (a).............................. 101,482 106,575
5,000 Questar Corp................................. 96,929 95,625
4,100 Sunoco, Inc.................................. 145,001 123,769
5,300 Tidewater, Inc............................... 142,959 161,650
5,800 Transocean Offshore, Inc..................... 156,133 152,250
1,900 Vastar Resources, Inc........................ 86,360 99,631
------------ ------------
1,262,182 1,264,157
------------ ------------
FINANCE - 12.30%
4,300 A.G. Edwards, Inc............................ 160,499 138,675
2,200 AFLAC, Inc................................... 95,720 105,325
500 Ameritrade Holding Corp...................... 57,086 53,000
5,000 City National Corp........................... 184,922 187,188
4,000 Cullen/Frost Bankers, Inc.................... 107,901 110,250
3,800 Dime Bancorp, Inc............................ 93,768 76,475
4,900 First Tennessee National Corp................ 160,953 187,731
1,200 Golden West Financial Corp. (a).............. 111,763 117,600
3,900 Mercantile Bankshares Corp................... 140,144 137,963
3,000 Nationwide Financial Services, Inc........... 135,108 135,750
4,200 North Fork Bancorporation, Inc............... 90,317 89,513
4,305 Old Kent Financial Corp...................... 162,175 180,272
1,200 Paine Webber Group, Inc. (a)................. 49,135 56,100
</TABLE>
68
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ------------ ------------
<C> <S> <C> <C>
2,600 PMI Group, Inc............................... $ 161,888 $ 163,313
2,000 Radian Group, Inc............................ 103,208 97,625
4,500 Regions Financial Corp....................... 176,673 172,969
1,000 RenaissanceRe Holdings Ltd................... 42,310 37,000
4,600 T. Rowe Price Associates, Inc................ 161,510 176,525
1,500 Zions Bancorporation......................... 78,580 95,250
------------ ------------
2,273,660 2,318,524
------------ ------------
HEALTH CARE - 8.82%
3,900 Bergen Brunswig Corp. Class A................ 105,591 67,275
8,400 Biogen, Inc. (a)............................. 293,990 540,225
4,600 Biomet, Inc.................................. 159,534 182,850
12,700 Health Management Associates, Inc............ 148,529 142,875
3,400 Lincare Holdings, Inc. (a)................... 124,645 85,000
2,300 MedImmune, Inc. (a).......................... 131,026 155,825
500 PacifiCare Health Systems, Inc. Class B (a) 39,668 35,969
1,000 Patterson Dental Co. (a)..................... 39,812 34,750
3,100 Universal Health Services Class B............ 146,928 148,025
1,500 VISX, Inc.................................... 102,735 118,781
4,300 Watson Pharmaceuticals, Inc. (a)............. 193,995 150,769
------------ ------------
1,486,453 1,662,344
------------ ------------
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ------------ ------------
<C> <S> <C> <C>
METAL & MINING - 0.47%
2,800 AK Steel Holding Corp. (a)................... $ 62,419 $ 63,000
800 Cleveland-Cliffs, Inc........................ 35,927 25,900
------------ ------------
98,346 88,900
------------ ------------
TRANSPORTATION - 1.46%
2,300 Alaska Air Group, Inc. (a)................... 99,475 96,025
2,800 Kansas City Southern Industries, Inc......... 127,782 178,675
------------ ------------
227,257 274,700
------------ ------------
UTILITIES - 7.53%
3,400 Allegheny Energy, Inc. (a)................... 104,797 109,013
3,800 BEC Energy................................... 154,214 156,750
4,100 CenturyTel, Inc.............................. 159,033 162,975
6,500 Energy East Corp............................. 179,716 169,000
3,900 GPU, Inc..................................... 163,029 164,531
8,100 IPALCO Enterprises, Inc...................... 190,418 171,619
8,000 OGE Energy Corp. (a)......................... 199,892 190,000
2,700 Pinnacle West Capital Corp................... 114,058 108,675
3,000 Sierra Pacific Resources..................... 107,878 109,125
3,400 TECO Energy, Inc............................. 92,185 77,350
------------ ------------
1,465,220 1,419,038
------------ ------------
TOTAL COMMON STOCKS.......................... $ 16,392,501 $ 18,090,546
------------ ------------
------------ ------------
</TABLE>
SHORT-TERM INVESTMENTS - 2.00%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
--------- ------------
<C> <S> <C>
BANKS - 1.63%
$306,847 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 4.80%........ $ 306,847
------------
U.S. TREASURY BILLS - 0.37%
70,000 US Treasury Bill, 4.67% 9-16-1999 (e)........ 69,313
------------
TOTAL SHORT-TERM INVESTMENTS................. 376,160
------------
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$16,768,661) (B)........................... $18,466,706
------------
------------
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 1999, the cost of securities for federal income tax purposes
was $16,781,608 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 2,474,293
Unrealized depreciation..................................... (789,195)
- -------------------------------------------------------------------------
Net unrealized appreciation................................. $ 1,685,098
- -------------------------------------------------------------------------
</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 .21% of total net assets as of June 30, 1999.
(e) Security pledged as initial margin deposit for open financial futures
position detailed below:
<TABLE>
<CAPTION>
FINANCIAL FUTURES-LONG
MARKET
VALUE UNREALIZED
COVERED APPRECIATION/
NUMBER OF BY (DEPRECIATION)
ISSUER CONTRACT(S) CONTRACT(S) EXPIRATION AT 6/30/99
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
September
Standard & Poor's Midcap 400............................ 3 $ 629,025 99 $ 4,575
</TABLE>
69
<PAGE>
FORTIS SERIES FUND, INC.
SMALL CAP VALUE SERIES
Schedule of Investments
June 30, 1999 (Unaudited)
COMMON STOCKS-94.31%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
APPAREL - 1.14%
50,000 Gerber Childrenswear, Inc.................... $ 419,325 $ 331,250
------------ ------------
BANKS -- 13.20%
7,500 Bank United Corp Class A..................... 300,469 301,406
11,500 CCB Financial Group.......................... 630,315 608,062
13,300 Community Bank System, Inc................... 383,001 337,487
55,000 First Sentinel Bancorp, Inc.................. 465,706 488,125
5,000 FNB Corp..................................... 125,362 135,000
6,100 Interwest Bancorp, Inc....................... 136,380 152,500
20,000 New England Community Bancorp, Inc........... 404,592 551,250
35,000 Peoples Heritage Financial Group............. 633,750 658,437
30,000 Seacoast Financial Services Corp............. 311,569 341,250
10,000 Webster Financial Corp....................... 271,288 271,250
------------ ------------
3,662,432 3,844,767
------------ ------------
BUILDING MATERIALS - 2.22%
31,500 Thomas Industries, Inc....................... 581,188 645,750
------------ ------------
BUSINESS SERVICES - 3.95%
36,000 Interim Services, Inc. (a)................... 664,144 742,500
46,000 Romac International, Inc. (a)................ 470,548 408,250
------------ ------------
1,134,692 1,150,750
------------ ------------
CHEMICALS-SPECIALTY - 2.95%
50,000 A. Schulman, Inc............................. 722,156 859,375
------------ ------------
CLOSED END GLOBAL COUNTRY
FUND - 1.82%
55,000 Morgan Stanley Asia Pacific Fund............. 412,083 529,375
------------ ------------
COMPUTER-HARDWARE - 0.91%
37,500 Splash Technology Holdings................... 388,398 263,672
------------ ------------
COMPUTER-SOFTWARE - 1.14%
24,000 Computer Horizons, Corp...................... 305,588 331,500
------------ ------------
CONSTRUCTION - 1.79%
28,000 Champion Enterprises, Inc.................... 571,226 521,500
------------ ------------
CONSUMER GOODS - 2.89%
40,000 Jostens, Inc................................. 907,264 842,500
------------ ------------
ELECTRONIC COMPONENTS - 3.15%
24,000 Methode Electronics, Inc..................... 276,405 549,000
22,800 REMEC, Inc. (a).............................. 307,380 367,650
------------ ------------
583,785 916,650
------------ ------------
ELECTRONIC-COMMUNICATION
SECURITY - 1.41%
12,000 Pittway Corp. Class A........................ 298,065 410,250
------------ ------------
ENERGY & RELATED - 2.24%
34,000 Watts Industries, Inc. Class A............... 491,676 652,375
------------ ------------
FOOD - 1.13%
45,000 Vlasic Foods International................... 398,811 329,062
------------ ------------
INSURANCE - 2.40%
35,000 IPC Holdings Ltd............................. 716,013 700,000
------------ ------------
MACHINERY-SPECIALTY - 2.67%
20,000 Speedfam-IPEC, Inc........................... 310,056 321,250
30,000 Stewart and Stevenson Services, Inc.......... 245,857 457,500
------------ ------------
555,913 778,750
------------ ------------
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
MEDICAL SUPPLIES - 5.44%
45,000 Perrigo Co. (a).............................. $ 436,136 $ 343,125
44,000 Sola International, Inc...................... 639,917 855,250
20,000 STERIS Corp. (a)............................. 351,195 387,500
------------ ------------
1,427,248 1,585,875
------------ ------------
OIL AND GAS FIELD SERVICES - 5.97%
22,000 Chieftain International, Inc................. 334,914 385,000
19,100 Evergreen Resources, Inc..................... 305,171 481,081
125,000 Key Energy Services, Inc. (a)................ 378,388 445,312
15,000 Newfield Exploration Co. (a)................. 296,942 426,563
------------ ------------
1,315,415 1,737,956
------------ ------------
OIL-MISCELLANEOUS - 0.97%
15,000 Flowserve Corp............................... 248,557 284,063
------------ ------------
OIL-OFFSHORE DRILLING - 3.13%
25,000 Marine Drilling Companies, Inc. (a).......... 268,035 342,188
31,000 Mitchell Energy and Development Corp. Class
B.......................................... 403,046 569,625
------------ ------------
671,081 911,813
------------ ------------
REAL ESTATE-INVESTMENT TRUST - 11.19%
21,500 Gables Residential Trust..................... 546,716 518,688
20,200 Home Properties of New York, Inc............. 521,632 558,025
50,000 IRT Property Co.............................. 533,583 493,750
12,000 Parkway Properties, Inc...................... 353,046 397,500
23,000 Prentiss Properties Trust.................... 517,189 540,500
38,000 Summit Properties, Inc....................... 700,136 750,500
------------ ------------
3,172,302 3,258,963
------------ ------------
RECREATIONAL EQUIPMENT - 1.81%
20,000 Fleetwood Enterprises........................ 516,209 528,750
------------ ------------
RESTAURANTS AND FRANCHISING - 1.03%
37,600 Landry's Seafood Restaurants, Inc. (a)....... 364,249 300,800
------------ ------------
RETAIL-DEPARTMENT STORES - 1.52%
50,000 Spiegel, Inc. Class A........................ 263,249 443,750
------------ ------------
RETAIL-HOUSEHOLD FURNITURE - 2.12%
55,000 Pier 1 Imports, Inc.......................... 512,939 618,750
------------ ------------
RETAIL-SPECIALTY - 1.93%
10,500 Payless ShoeSource, Inc. (a)................. 495,494 561,750
------------ ------------
SAVINGS AND LOANS, MORTGAGE COMPANIES - 1.42%
50,000 Warren Bancorp, Inc.......................... 473,338 412,500
------------ ------------
SHIP BUILDING, SHIPPING - 1.80%
30,000 Knightsbridge Tankers Ltd.................... 739,622 525,000
------------ ------------
SHOES AND LEATHER - 2.88%
60,000 Wolverine World Wide, Inc.................... 654,219 840,000
------------ ------------
STEEL AND IRON - 1.27%
40,000 NS Group, Inc................................ 211,746 370,000
------------ ------------
TELECOMMUNICATION EQUIPMENT - 3.74%
17,000 Federal Signal Corp.......................... 355,985 360,188
35,000 Hypercom Corp. (a)........................... 313,558 334,688
40,000 Network Equipment Technologies, Inc. (a) 433,758 395,000
------------ ------------
1,103,301 1,089,876
------------ ------------
</TABLE>
70
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
TELECOMMUNICATIONS - 3.08%
28,000 Aspect Telecommunications.................... $ 246,724 $ 273,000
45,000 General Communication Class A................ 220,151 305,859
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
6,500 Jones Intercable, Inc. Class A............... $ 160,331 $ 318,500
------------ ------------
627,206 897,359
------------ ------------
TOTAL COMMON STOCKS.......................... $ 24,944,790 $ 27,474,731
------------ ------------
------------ ------------
</TABLE>
SHORT-TERM INVESTMENTS - 7.01%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
----------- ------------
<C> <S> <C>
BANKS - 7.01%
$2,041,385 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 4.91%........ $ 2,041,385
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$26,986,175) (b)........................... $29,516,116
------------
------------
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 1999, the cost of securities for federal income tax purposes
was $27,056,628 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 3,732,296
Unrealized depreciation..................................... (1,272,808)
- -------------------------------------------------------------------------
Net unrealized appreciation................................. $ 2,459,488
- -------------------------------------------------------------------------
</TABLE>
(c) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets. Market value of investments in foreign
securities represents 4.21% of total net assets as of June 30, 1999.
71
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL GROWTH SERIES
Schedule of Investments
June 30, 1999 (Unaudited)
COMMON STOCKS-94.91%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
----------- ------------- -------------
<C> <S> <C> <C>
AUSTRALIA - 0.65%
196,000 Broken Hill Proprietary Co. Ltd. -- STEEL AND
IRON....................................... $ 2,157,415 $ 2,270,317
------------- -------------
BRAZIL - 0.48%
76,000 Aracruz Celulose S.A. ADR -- FOREST
PRODUCTS................................... 1,536,328 1,672,000
24,000 Telecomunicacoes Brasileiras S.A.-Telebras
ADR -- TELEPHONE SERVICES.................. 1,680 1,500
------------- -------------
1,538,008 1,673,500
------------- -------------
FINLAND - 4.33%
99,100 KCI Konecranes International plc
(e) -- MACHINERY........................... 2,400,981 3,404,343
134,000 Nokia Oyj -- TELECOMMUNICATION EQUIPMENT..... 693,790 11,746,506
------------- -------------
3,094,771 15,150,849
------------- -------------
FRANCE - 5.90%
17,000 Axa -- INSURANCE............................. 1,962,653 2,074,047
27,000 Casino Guichard Perrachon S.A. -- FOOD....... 2,681,126 2,366,833
12,500 Dexia France -- BANKS........................ 1,571,675 1,673,284
9,700 Groupe Danone -- FOOD........................ 1,764,770 2,500,902
3,430 Promodes -- FOOD............................. 2,277,388 2,251,529
63,327 Rhone-Poulenc S.A. (Warrants)
(a) -- CHEMICALS........................... 216,168 182,065
63,327 Rhone-Poulenc S.A. ADR -- CHEMICALS.......... 2,572,753 2,920,958
64,000 Sanofi-Synthelabo S.A. (a) -- DRUGS.......... 993,250 2,716,032
32,600 Sidel -- MACHINERY........................... 2,536,918 3,963,843
------------- -------------
16,576,701 20,649,493
------------- -------------
GERMANY - 1.11%
26,000 Mannesmann AG -- MACHINERY................... 2,481,668 3,888,001
------------- -------------
HUNGARY - 1.70%
81,000 Matav Rt. ADR (a) -- TELEPHONE SERVICES...... 1,924,635 2,227,500
155,000 MOL Magyar Olaj-es Gazipari Rt. GDR
(e) -- OIL-CRUDE PETROLEUM AND GAS......... 1,255,500 3,736,058
------------- -------------
3,180,135 5,963,558
------------- -------------
ISRAEL - 2.08%
84,000 ECI Telecommunications
Ltd. -- TELECOMMUNICATION EQUIPMENT........ 1,662,746 2,787,750
92,000 Teva Pharmaceutical Industries Ltd.
ADR -- DRUGS............................... 3,578,638 4,508,000
------------- -------------
5,241,384 7,295,750
------------- -------------
ITALY - 2.72%
23,500 Assicurazioni Generali -- INSURANCE.......... 893,850 814,314
152,000 Industrie Natuzzi S.p.A. ADR -- FURNITURE.... 3,153,220 2,954,500
96,900 Mondadori (Arnoldo) Editore S.p.A.
(a) -- PUBLISHING.......................... 1,669,150 1,678,874
390,000 Telecom Italia S.p.A. -- TELEPHONE
SERVICES................................... 2,613,161 4,054,246
------------- -------------
8,329,381 9,501,934
------------- -------------
JAPAN - 14.43%
47,400 Advantest Corp. -- MACHINERY................. 3,229,069 5,208,361
31,200 Aiful Corp. -- FINANCIAL SERVICES............ 1,801,826 3,820,093
118,000 Bank of Tokyo-Mitsubishi Ltd. -- BANKS....... 1,682,938 1,679,726
19,000 Canon Sales Co., Inc. -- CONSUMER GOODS...... 303,434 298,405
135,000 Canon, Inc. ADR -- OFFICE EQUIPMENT AND
SUPPLIES................................... 2,113,634 3,931,875
271,000 Fuji Bank Ltd. -- BANKS...................... 1,651,957 1,889,656
91,000 Fujitsu Ltd. -- MISCELLANEOUS................ 1,403,938 1,830,676
7,000 Fujitsu Support and Service, Inc.
(e) -- BUSINESS SERVICES................... 219,895 1,059,484
48,000 Honda Motor Co. Ltd. -- AUTOMOBILE
MANUFACTURERS.............................. 1,813,932 2,034,369
64,000 Kirin Brewery Company Ltd. -- BEVERAGE....... 797,879 766,689
33,000 Murata Manufacturing Co.
Ltd -- ELECTRICAL-COMPONENTS AND PARTS..... 2,147,543 2,170,192
191,000 NEC Corp. -- BUSINESS SERVICES............... 2,326,866 2,374,876
29,000 Nintendo Co. Ltd. -- TOYS.................... 3,484,930 4,075,430
493 Nippon Telegraph & Telephone
Corp. -- TELEPHONE SERVICES................ 4,176,327 5,742,978
27,000 Orix Corp. -- LEASING........................ 2,489,208 2,409,121
</TABLE>
72
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
----------- ------------- -------------
<C> <S> <C> <C>
30,000 Sony Corp. -- ELECTRONIC COMPONENTS.......... $ 1,951,042 $ 3,234,468
125,000 Sumitomo Bank Ltd. -- BANKS.................. 1,701,413 1,550,107
40,000 Takeda Chemical Industries -- DRUGS.......... 1,625,100 1,853,933
26,900 TDK Corp. -- ELECTRONIC COMPONENTS........... 2,137,099 2,460,203
31,000 Tokyo Electron Ltd. -- MACHINERY............. 1,049,357 2,102,693
------------- -------------
38,107,387 50,493,335
------------- -------------
MEXICO - 1.71%
76,200 Grupo Televisa S.A. GDR -- BROADCASTING...... 2,427,494 3,414,712
108,200 Panamerican Beverages, Inc. Class
A -- BEVERAGE.............................. 2,288,387 2,576,512
------------- -------------
4,715,881 5,991,224
------------- -------------
NETHERLANDS - 3.40%
63,000 IHC Caland N.V. -- OIL AND GAS FIELD
SERVICES................................... 2,132,115 2,468,932
140,000 VNU N.V. -- PUBLISHING....................... 3,256,385 5,594,802
96,000 Wolters Kluwer N.V. -- PUBLISHING............ 1,404,741 3,821,585
------------- -------------
6,793,241 11,885,319
------------- -------------
NORWAY - 1.40%
235,000 Petroleum Geo-Services ADR (a) -- OIL AND GAS
FIELD SERVICES............................. 3,532,063 3,495,625
130,000 Stolt Comex Seaway S.A. (a) -- OIL AND GAS
FIELD SERVICES............................. 916,705 1,413,750
------------- -------------
4,448,768 4,909,375
------------- -------------
PORTUGAL - 0.75%
63,800 Portugal Telecom S.A. ADR -- TELEPHONE
SERVICES................................... 1,989,354 2,627,762
------------- -------------
SINGAPORE - 0.45%
30,800 Asia Pulp & Paper Co. Ltd. (Warrants)
(a) -- PAPER............................... 89,541 80,850
154,000 Asia Pulp & Paper Co. Ltd. ADR
(a) -- PAPER............................... 1,295,812 1,482,250
------------- -------------
1,385,353 1,563,100
------------- -------------
SOUTH KOREA - 0.75%
127,800 Korea Electric Power Corp.
ADR -- UTILITIES-ELECTRIC.................. 1,717,844 2,619,900
------------- -------------
SPAIN - 2.56%
105,000 Repsol S.A. -- OIL-CRUDE PETROLEUM AND GAS... 1,448,791 2,144,073
46,308 Telefonica S.A. ADR -- TELEPHONE SERVICES.... 3,045,121 6,813,064
------------- -------------
4,493,912 8,957,137
------------- -------------
SWEDEN - 1.87%
189,000 Ericsson (L.M.) Telephone Co. Class B
ADR -- TELECOMMUNICATION EQUIPMENT......... 1,775,391 6,225,188
136,200 Industri-Matematik International Corp.
(a) -- COMPUTER-SOFTWARE................... 1,219,517 331,988
------------- -------------
2,994,908 6,557,176
------------- -------------
SWITZERLAND - 1.33%
300 Roche Holding AG -- DRUGS.................... 1,568,202 3,083,751
5,250 UBS AG -- BANKS.............................. 1,781,432 1,566,963
------------- -------------
3,349,634 4,650,714
------------- -------------
UNITED KINGDOM - 4.12%
211,700 Capita Group plc -- BUSINESS SERVICES........ 460,085 2,190,758
142,000 Dixons Group plc -- RETAIL-ELECTRIC PRODUCTS,
RADIO, TV, AUDIO........................... 1,783,438 2,659,155
36,300 Energis plc (a) -- TELEPHONE SERVICES........ 174,091 862,301
490,000 Orange plc (a) -- TELEPHONE SERVICES......... 1,564,107 7,206,371
335,000 TeleWest Communications plc
(a)(e) -- TELECOMMUNICATIONS............... 1,010,964 1,494,411
------------- -------------
4,992,685 14,412,996
------------- -------------
UNITED STATES - 43.17%
42,000 Alcoa, Inc. -- METALS-MINING AND
MISCELLANEOUS.............................. 2,205,769 2,598,750
132,000 Altera Corp. (a) -- ELECTRONIC-SEMICONDUCTOR
AND CAPACITOR.............................. 1,388,406 4,859,250
24,000 Applied Materials, Inc.
(a) -- ELECTRONIC-CONTROLS AND EQUIPMENT... 1,344,751 1,773,000
246,500 Avant! Corp. (a) -- COMPUTER-SOFTWARE........ 4,757,526 3,112,063
</TABLE>
73
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL GROWTH SERIES (CONTINUED)
Schedule of Investments
June 30, 1999 (Unaudited)
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
----------- ------------- -------------
<C> <S> <C> <C>
101,250 Baker Hughes, Inc. -- MACHINERY-OIL AND
WELL....................................... $ 1,338,427 $ 3,391,875
220,000 Bed Bath & Beyond, Inc.
(a) -- RETAIL-SPECIALTY.................... 2,189,769 8,470,000
87,000 Brinker International, Inc.
(a) -- RESTAURANTS AND FRANCHISING......... 2,503,167 2,365,313
46,455 Cardinal Health, Inc. -- HEALTH CARE
SERVICES................................... 1,599,105 2,978,927
31,750 Celera Genomics (a) -- BIOMEDICS, GENETICS
RESEARCH AND DEVELOPMENT................... 411,145 513,953
236,950 Cheesecake Factory (The), Inc.
(a) -- RESTAURANTS AND FRANCHISING......... 4,583,308 7,226,975
142,000 Cisco Systems, Inc.
(a) -- COMPUTER-COMMUNICATION EQUIPMENT.... 380,639 9,159,000
77,000 Citrix Systems, Inc.
(a) -- COMPUTER-SOFTWARE................... 2,575,094 4,350,500
46,000 Comcast Corp. Special Class A
(a) -- BROADCASTING........................ 1,428,452 1,768,125
153,200 Covance, Inc. (a) -- HEALTH CARE SERVICES.... 2,979,688 3,667,225
194,800 DSP Communications, Inc. (a) -- ELECTRONIC
COMPONENTS................................. 2,831,242 5,624,850
22,000 Enron Corp. -- NATURAL GAS TRANSMISSIONS..... 1,100,000 1,798,500
40,000 Georgia-Pacific Group -- PAPER............... 1,808,854 1,895,000
28,000 Global TeleSystems Group, Inc.
(a) -- TELECOMMUNICATIONS.................. 1,610,000 2,268,000
56,000 Guidant Corp. (a) -- MEDICAL TECHNOLOGY...... 1,992,416 2,880,500
39,000 International Paper Co. -- PAPER............. 2,073,104 1,969,500
30,400 Intuit, Inc. (a) -- COMPUTER-SOFTWARE........ 1,408,006 2,739,800
64,000 J.D. Edwards & Co.
(a) -- COMPUTER-SOFTWARE................... 1,264,872 1,184,000
28,000 MCI WorldCom, Inc. (a) -- TELEPHONE
SERVICES................................... 2,094,750 2,415,000
41,000 MediaOne Group, Inc. (a) -- CABLE
TELEVISION................................. 1,571,350 3,049,375
28,000 Medtronic, Inc. (with rights) -- MEDICAL
TECHNOLOGY................................. 1,591,133 2,180,500
27,000 Motorola, Inc. -- ELECTRONIC-SEMICONDUCTOR
AND CAPACITOR.............................. 1,864,991 2,558,250
69,000 Novell, Inc. (a) -- COMPUTER-SOFTWARE........ 1,720,556 1,828,500
223,499 Outback Steakhouse, Inc. (a) -- RESTAURANTS
AND FRANCHISING............................ 4,849,381 8,786,304
63,500 PE Corp -- PE BIOSYSTEMS GROUP -- PRECISION
INSTRUMENTS-TEST, RESEARCH................. 3,972,059 7,286,625
67,900 Polo Ralph Lauren Corp. (a) -- APPAREL....... 1,515,346 1,290,100
69,000 Reader's Digest Association, Inc. Class
A -- PUBLISHING............................ 2,125,248 2,742,750
28,438 Schlumberger Ltd. -- OIL AND GAS FIELD
SERVICES................................... 1,031,437 1,811,145
74,900 Sykes Enterprises, Inc. (a) -- BUSINESS
SERVICES................................... 1,524,076 2,499,788
123,000 Synopsys, Inc. (a) -- COMPUTER-SOFTWARE...... 3,207,693 6,788,063
112,000 Tandy Corp. (with
rights) -- RETAIL-SPECIALTY................ 4,333,830 5,474,000
180,000 Tellabs, Inc. (a) -- TELECOMMUNICATION
EQUIPMENT.................................. 1,210,073 12,161,250
87,000 Tidewater, Inc. -- SHIP BUILDING, SHIPPING... 2,440,452 2,653,500
42,000 Univision Communications, Inc.
(a) -- BROADCASTING........................ 1,512,000 2,772,000
31,000 Weyerhaeuser Co. -- FOREST PRODUCTS.......... 2,073,999 2,131,250
105,600 Xilinx, Inc. (a) -- ELECTRONIC-SEMICONDUCTOR
AND CAPACITOR.............................. 1,093,183 6,045,600
------------- -------------
83,505,297 151,069,106
------------- -------------
TOTAL COMMON STOCKS.......................... $ 201,093,727 $ 332,130,546
------------- -------------
------------- -------------
</TABLE>
PREFERRED STOCKS-1.86%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
----------- ------------- -------------
<C> <S> <C> <C>
BRAZIL - 0.62%
24,000 Telecomunicacoes Brasileiras S.A. ADR
Preferred (a) -- TELECOMMUNICATIONS........ $ 1,513,298 $ 2,164,500
------------- -------------
GERMANY - 1.24%
10,900 SAP AG Systeme
Preferred -- COMPUTER-SOFTWARE............. 617,665 4,333,471
------------- -------------
TOTAL PREFERRED STOCKS....................... 2,130,963 6,497,971
------------- -------------
------------- -------------
TOTAL LONG-TERM INVESTMENTS.................. $ 203,224,690 $ 338,628,517
------------- -------------
------------- -------------
</TABLE>
74
<PAGE>
SHORT-TERM INVESTMENTS-3.10%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
----------- -------------
<C> <S> <C>
BANKS - 2.27%
$7,950,973 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 4.80%........ $ 7,950,973
-------------
DIVERSIFIED FINANCE - 0.83%
2,895,000 Associates Corp. Master Variable Rate Note,
Current rate -- 4.71%...................... 2,895,000
-------------
TOTAL SHORT-TERM INVESTMENTS................. 10,845,973
-------------
-------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$214,070,663) (B).......................... $ 349,474,490
-------------
-------------
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 1999, the cost of securities for federal income tax purposes
was $214,111,353 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $139,667,509
Unrealized depreciation..................................... (4,304,372)
- --------------------------------------------------------------------------
Net unrealized appreciation................................. $135,363,137
- --------------------------------------------------------------------------
</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 a private placement memorandum, exempt
from registration under Section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or to other
"accredited investors". These investments have been identified by portfolio
management as illiquid securities:
<TABLE>
<CAPTION>
Period Acquired Shares/Par Security Cost Basis
- -------------------- ----------- ------------------------------ ---------------
<S> <C> <C> <C>
Fuujitsu Support and Service,
1998 7,000 Inc. $ 219,895
KCI Konecranes International
1996 and 1998 99,100 plc 2,400,981
MOL Magyar Olaj-es Gazipari
1995 155,000 Rt.GDR 1,255,500
1999 335,000 TeleWest Communications plc 1,010,964
</TABLE>
The aggregate value of these securities at June 30, 1999, was $9,694,296,
which represents 2.77% of total net assets.
75
<PAGE>
FORTIS SERIES FUND, INC.
LARGE CAP GROWTH SERIES
Schedule of Investments
June 30, 1999 (Unaudited)
COMMON STOCKS-94.70%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
AEROSPACE AND EQUIPMENT - 1.47%
10,300 United Technologies Corp..................... $ 590,644 $ 738,381
------------ ------------
AIRLINES - 0.77%
8,100 Continental Airlines Class B................. 308,989 304,762
1,300 UAL Corp. (a)................................ 84,971 84,500
------------ ------------
393,960 389,262
------------ ------------
AUTOMOBILE MANUFACTURERS - 0.92%
7,000 General Motors Corp.......................... 519,617 462,000
------------ ------------
BANKS - 3.66%
14,097 Bank of America Corp......................... 946,385 1,033,486
11,700 Bank One Corp................................ 692,869 696,881
1,700 Fifth Third Bancorp.......................... 109,144 113,156
------------ ------------
1,748,398 1,843,523
------------ ------------
BROADCASTING - 2.41%
33,000 AT&T Corp. - Liberty Media Group (a)......... 720,668 1,212,750
------------ ------------
BROKERAGE AND INVESTMENT - 1.87%
4,300 Goldman Sachs Group, Inc..................... 258,634 310,675
7,900 Merrill Lynch & Co., Inc..................... 595,646 631,506
------------ ------------
854,280 942,181
------------ ------------
BUSINESS SERVICES - 5.47%
7,300 IMS Health, Inc.............................. 218,258 228,125
26,633 Tyco International Ltd....................... 1,800,433 2,523,477
------------ ------------
2,018,691 2,751,602
------------ ------------
CABLE TELEVISION - 2.73%
18,500 MediaOne Group, Inc. (a)..................... 1,396,850 1,375,937
------------ ------------
COMPUTER-COMMUNICATION
EQUIPMENT - 6.82%
22,400 Cisco Systems, Inc. (a)...................... 712,199 1,444,800
53,800 Dell Computer Corp. (a)...................... 1,814,580 1,990,600
------------ ------------
2,526,779 3,435,400
------------ ------------
COMPUTER-SOFTWARE - 2.89%
2,800 America Online, Inc. (a)..................... 280,280 309,400
12,700 Microsoft Corp. (a).......................... 893,224 1,145,381
------------ ------------
1,173,504 1,454,781
------------ ------------
CONSUMER GOODS - 0.08%
400 Colgate-Palmolive Co......................... 30,758 39,500
------------ ------------
DRUGS - 9.88%
14,700 Bristol-Myers Squibb Co...................... 849,941 1,035,431
12,100 Pfizer, Inc. (with rights)................... 1,367,722 1,327,975
31,900 Schering-Plough Corp......................... 1,562,816 1,690,700
13,300 Warner-Lambert Co............................ 931,399 922,687
------------ ------------
4,711,878 4,976,793
------------ ------------
ELECTRICAL EQUIPMENT - 0.29%
1,300 General Electric Co.......................... 93,292 146,900
------------ ------------
ELECTRONIC COMPONENTS - 0.46%
3,500 Solectron Corp. (a).......................... 220,992 233,406
------------ ------------
ELECTRONIC-SEMICONDUCTOR AND CAPACITOR -
3.35%
28,300 Intel Corp................................... 1,583,055 1,683,850
------------ ------------
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
FINANCIAL SERVICES - 14.85%
34,662 Associates First Capital Corp. Class A....... $ 1,423,995 $ 1,535,960
3,700 C.I.T. Group, Inc............................ 122,850 106,837
18,100 Citigroup, Inc............................... 766,419 859,750
5,800 Fannie Mae................................... 402,003 396,575
14,600 Freddie Mac.................................. 824,977 846,800
5,903 Household International, Inc................. 248,244 279,655
45,300 MBNA Corp.................................... 1,094,860 1,387,313
16,900 Morgan Stanley Dean Witter & Co.............. 1,532,192 1,732,250
25,500 Newcourt Credit Group, Inc................... 535,698 329,906
------------ ------------
6,951,238 7,475,046
------------ ------------
FOOD - 0.72%
7,300 Safeway, Inc. (a)............................ 368,436 361,350
------------ ------------
HEALTH CARE SERVICES - 1.87%
5,200 Cardinal Health, Inc......................... 326,602 333,450
18,900 McKesson HBOC, Inc........................... 1,249,965 607,163
------------ ------------
1,576,567 940,613
------------ ------------
INSURANCE - 1.02%
4,400 American International Group, Inc............ 457,435 515,075
------------ ------------
MEDIA - 2.79%
8,400 Clear Channel Communications, Inc. (a)....... 593,250 579,075
5,700 Gannett Co., Inc............................. 368,015 406,838
5,700 Time Warner, Inc............................. 403,962 418,950
------------ ------------
1,365,227 1,404,863
------------ ------------
OFFICE EQUIPMENT AND SUPPLIES - 3.42%
16,000 EMC Corp. (a)................................ 579,935 880,000
6,500 International Business Machines Corp......... 697,965 840,125
------------ ------------
1,277,900 1,720,125
------------ ------------
RESTAURANTS AND FRANCHISING - 0.04%
500 Starbucks Corp. (a).......................... 18,281 18,781
------------ ------------
RETAIL-CLOTHING - 2.25%
22,500 Gap, Inc..................................... 945,316 1,133,438
------------ ------------
RETAIL-DEPARTMENT STORES - 0.58%
3,800 Kohl's Corp. (a)............................. 181,805 293,313
------------ ------------
RETAIL-DISCOUNT STORES - 2.93%
10,000 Costco Companies, Inc. (a)................... 800,037 800,625
14,000 Wal-Mart Stores, Inc......................... 465,875 675,500
------------ ------------
1,265,912 1,476,125
------------ ------------
RETAIL-GROCERY - 1.63%
29,400 Kroger Co. (a)............................... 813,774 821,363
------------ ------------
RETAIL-MISCELLANEOUS - 0.66%
4,900 Best Buy Co., Inc. (a)....................... 239,867 330,750
------------ ------------
RETAIL-SPECIALTY - 6.01%
26,400 Home Depot, Inc.............................. 1,264,056 1,701,150
23,400 Lowe's Companies, Inc........................ 1,196,215 1,326,488
------------ ------------
2,460,271 3,027,638
------------ ------------
TELECOMMUNICATION EQUIPMENT - 5.07%
27,900 Nokia Oyj Corp. ADR Class A.................. 1,687,140 2,554,594
------------ ------------
TELECOMMUNICATIONS - 2.55%
19,065 Lucent Technologies, Inc..................... 983,303 1,285,696
------------ ------------
</TABLE>
76
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
TELEPHONE SERVICES - 4.56%
17,400 MCI WorldCom, Inc. (a)....................... $ 1,332,363 $ 1,500,750
3,700 Vodafone AirTouch plc ADR.................... 649,714 796,657
------------ ------------
1,982,077 2,297,407
------------ ------------
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
WASTE DISPOSAL - 0.68%
6,400 Waste Management, Inc........................ $ 295,593 $ 344,000
------------ ------------
TOTAL COMMON STOCKS.......................... $ 41,453,508 $ 47,686,443
------------ ------------
------------ ------------
</TABLE>
SHORT-TERM INVESTMENTS-5.62%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
----------- ------------
<C> <S> <C>
BANKS - 3.33%
$1,678,483 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 4.91%........ $ 1,678,483
------------
INVESTMENT COMPANY - 2.29%
1,150,000 First American Prime Obligation Fund, Current
rate -- 4.66%.............................. 1,150,000
------------
TOTAL SHORT-TERM INVESTMENTS................. 2,828,483
------------
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$44,281,991) (B)........................... $50,514,926
------------
------------
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 1999, the cost of securities for federal income tax purposes
was $44,326,658 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 7,632,480
Unrealized depreciation..................................... (1,444,212)
- -------------------------------------------------------------------------
Net unrealized appreciation................................. $ 6,188,268
- -------------------------------------------------------------------------
</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 7.31% of total net assets as of June 30, 1999.
77
<PAGE>
FORTIS SERIES FUND, INC.
GROWTH STOCK SERIES
Schedule of Investments
June 30, 1999 (Unaudited)
COMMON STOCKS-97.04%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
-------- ------------- -------------
<C> <S> <C> <C>
ADVERTISING-PUBLIC RELATIONS - 4.66%
186,800 Cox Radio, Inc. (a).......................... $ 8,047,570 $ 10,133,900
315,000 Outdoor Systems, Inc. (a).................... 7,140,477 11,497,500
292,500 Young & Rubicam, Inc......................... 8,395,736 13,290,469
------------- -------------
23,583,783 34,921,869
------------- -------------
AIR FREIGHT - 0.77%
180,000 Atlas Air, Inc. (a).......................... 5,706,694 5,805,000
------------- -------------
AUTOMOBILE AND MOTOR VEHICLE
PARTS - 1.04%
112,500 Johnson Controls, Inc........................ 8,091,301 7,797,656
------------- -------------
BANKS - 1.37%
162,000 Zions Bancorporation......................... 8,321,150 10,287,000
------------- -------------
BIOMEDICS, GENETICS RESEARCH AND DEVELOPMENT
- 0.76%
45,000 Immunex Corp. (a)............................ 4,708,759 5,734,687
------------- -------------
BROADCASTING - 4.17%
112,500 Chancellor Media Corp. (a)................... 5,234,695 6,201,562
135,000 Hispanic Broadcasting Corp. (a).............. 7,690,676 10,243,125
225,000 Univision Communications, Inc. (a)........... 6,965,524 14,850,000
------------- -------------
19,890,895 31,294,687
------------- -------------
BUSINESS SERVICES - 4.83%
180,000 ACNielsen Corp. (a).......................... 4,989,828 5,445,000
72,800 C.H. Robinson Worldwide, Inc................. 1,878,802 2,675,400
135,000 Microchip Technology, Inc. (a)............... 6,523,314 6,395,625
225,000 Nielsen Media Research, Inc.................. 6,255,437 6,581,250
168,700 Quintiles Transnational Corp. (a)............ 7,540,936 7,085,400
258,700 Viad Corp.................................... 6,693,665 8,003,531
------------- -------------
33,881,982 36,186,206
------------- -------------
CHEMICALS-SPECIALTY - 0.89%
119,600 Minerals Technologies, Inc................... 6,522,087 6,675,175
------------- -------------
COMPUTER-COMMUNICATION EQUIPMENT - 1.17%
270,000 Cabletron Systems, Inc. (a).................. 4,067,351 3,510,000
135,000 Unisys Corp. (a)............................. 4,740,027 5,256,562
------------- -------------
8,807,378 8,766,562
------------- -------------
COMPUTER-SOFTWARE - 14.20%
180,000 Adaptec, Inc. (a)............................ 5,504,130 6,356,250
112,600 Adobe Systems, Inc........................... 7,697,357 9,250,794
180,000 Affiliated Computer Services, Inc. (a)....... 6,631,261 9,112,500
247,500 BEA Systems, Inc. (a)........................ 5,282,856 7,069,219
105,700 Check Point Software Technologies Ltd. (a)... 5,673,465 5,668,162
135,000 Citrix Systems, Inc. (a)..................... 7,344,330 7,627,500
45,000 Clarify, Inc. (a)............................ 1,856,796 1,856,250
180,000 Comverse Technology, Inc. (a)................ 8,336,446 13,590,000
270,000 ISS Group, Inc. (a).......................... 8,043,750 10,192,500
48,400 Macromedia, Inc. (a)......................... 1,728,568 1,706,100
135,000 Mercury Interactive Corp. (a)................ 4,815,118 4,775,625
315,000 National Instruments Corp. (a)............... 9,524,081 12,718,125
180,000 Peregrine Systems, Inc. (a).................. 4,754,799 4,623,750
180,000 Siebel Systems, Inc. (a)..................... 8,926,691 11,947,500
------------- -------------
86,119,648 106,494,275
------------- -------------
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------- -------------
<C> <S> <C> <C>
CONSUMER GOODS - 0.14%
60,800 Boyds Collection Ltd. (a).................... $ 1,094,400 $ 1,052,600
------------- -------------
CONTAINERS AND PACKAGING - 0.96%
110,700 Sealed Air Corp. (a)......................... 6,673,070 7,181,662
------------- -------------
DRUGS - 2.26%
180,000 MedImmune, Inc. (a).......................... 7,810,312 12,195,000
86,100 QLT PhotoTherapeutics, Inc. (a).............. 4,167,968 4,735,500
------------- -------------
11,978,280 16,930,500
------------- -------------
ELECTRICAL-COMPONENTS AND
PARTS - 1.04%
180,000 Celestica, Inc. (a).......................... 7,433,908 7,796,250
------------- -------------
ELECTRONIC COMPONENTS - 2.04%
94,500 Applied Micro Circuits Corp. (a)............. 6,434,247 7,772,625
270,000 Gentex Corp. (a)............................. 5,604,118 7,560,000
------------- -------------
12,038,365 15,332,625
------------- -------------
ELECTRONIC-COMMUNICATION
SECURITY - 0.34%
29,200 VeriSign, Inc. (a)........................... 1,506,169 2,518,500
------------- -------------
ELECTRONIC-CONTROLS AND
EQUIPMENT - 0.91%
337,500 American Power Conversion Corp. (a) 6,793,079 6,792,187
------------- -------------
ELECTRONIC-SEMICONDUCTOR AND CAPACITOR -
5.41%
67,500 Altera Corp. (a)............................. 2,172,867 2,484,844
180,000 Cypress Semiconductor Corp. (a).............. 2,917,268 2,970,000
225,000 LSI Logic Corp. (a).......................... 8,351,533 10,378,125
125,900 SDL, Inc. (a)................................ 5,451,191 6,428,769
382,500 Vishay Intertechnology, Inc. (a)............. 6,457,595 8,032,500
180,000 Xilinx, Inc. (a)............................. 6,351,748 10,305,000
------------- -------------
31,702,202 40,599,238
------------- -------------
FINANCIAL SERVICES - 5.42%
225,000 Ambac Financial Group, Inc................... 14,140,194 12,853,125
227,400 Capital One Financial Corp................... 2,188,343 12,663,337
180,000 Concord EFS, Inc. (a)........................ 6,364,020 7,616,250
90,000 Donaldson, Lufkin & Jenrette, Inc. -
DLJdirect (a).............................. 2,919,454 2,655,000
1,700 Franklin Resources, Inc...................... 25,769 69,062
15,900 National Commerce Bancorporation............. 379,411 347,813
177,700 TD Waterhouse Group, Inc. (a)................ 4,253,274 4,453,606
------------- -------------
30,270,465 40,658,193
------------- -------------
FOOD - 2.11%
49,600 Keebler Foods Co. (a)........................ 1,601,211 1,506,600
176,600 Suiza Foods Corp. (a)........................ 7,617,533 7,395,125
162,000 U.S. Foodservice (a)......................... 7,672,254 6,905,250
------------- -------------
16,890,998 15,806,975
------------- -------------
FREIGHT CARRIERS - 0.98%
270,000 Expeditors International of Washington,
Inc........................................ 8,456,901 7,357,500
------------- -------------
FURNITURE - 1.34%
360,000 Furniture Brands International, Inc. (a) 8,696,567 10,035,000
------------- -------------
</TABLE>
78
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------- -------------
<C> <S> <C> <C>
HEALTH CARE SERVICES - 1.91%
239,600 MedQuist, Inc. (a)........................... $ 8,331,822 $ 10,482,500
45,000 Wellpoint Health Networks, Inc. (a).......... 3,770,052 3,819,375
------------- -------------
12,101,874 14,301,875
------------- -------------
HOTEL AND GAMING - 0.98%
135,000 Harrah's Entertainment, Inc. (a)............. 3,202,419 2,970,000
450,000 Park Place Entertainment Corp. (a)........... 5,198,771 4,359,375
------------- -------------
8,401,190 7,329,375
------------- -------------
INSURANCE - 2.00%
270,000 Ace Ltd...................................... 8,468,646 7,627,500
134,500 UNUM Corp.................................... 7,423,668 7,363,875
------------- -------------
15,892,314 14,991,375
------------- -------------
LEISURE TIME-AMUSEMENTS - 1.32%
226,200 Royal Caribbean Cruises Ltd.................. 7,961,578 9,896,250
------------- -------------
MACHINERY - 0.78%
135,000 Teleflex, Inc................................ 6,072,794 5,864,063
------------- -------------
MEDICAL SUPPLIES - 5.11%
315,000 Mallinckrodt Group, Inc...................... 9,332,321 11,458,125
136,900 MiniMed, Inc. (a)............................ 7,024,641 10,532,744
180,000 St. Jude Medical, Inc........................ 6,359,028 6,412,500
360,000 Sybron International Corp. (a)............... 8,608,045 9,922,500
------------- -------------
31,324,035 38,325,869
------------- -------------
METALS-FABRICATING - 2.17%
305,800 Waters Corp. (a)............................. 9,180,119 16,245,625
------------- -------------
OIL AND GAS FIELD SERVICES - 0.52%
259,900 Petroleum Geo-Services ADR (a)............... 3,813,870 3,866,013
------------- -------------
OIL-CRUDE PETROLEUM AND GAS - 1.40%
180,000 Apache Corp.................................. 6,831,700 7,020,000
90,000 Barrett Resources Corp. (a).................. 3,223,205 3,453,750
------------- -------------
10,054,905 10,473,750
------------- -------------
OIL-OFFSHORE DRILLING - 0.66%
190,100 Transocean Offshore, Inc..................... 6,113,897 4,990,125
------------- -------------
PAPER - 3.21%
225,000 Georgia-Pacific Group........................ 8,394,113 10,659,375
90,000 Temple-Inland, Inc........................... 6,277,140 6,142,500
157,500 Williamette Industries, Inc.................. 6,509,974 7,254,844
------------- -------------
21,181,227 24,056,719
------------- -------------
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------- -------------
<C> <S> <C> <C>
PRINTING - 3.62%
180,000 Electronics for Imaging, Inc. (a)............ $ 7,551,333 $ 9,247,500
121,500 Lexmark International Group Class A (a)...... 7,500,782 8,026,594
270,000 Valassis Communications, Inc. (a)............ 9,197,091 9,888,750
------------- -------------
24,249,206 27,162,844
------------- -------------
PUBLISHING - 0.66%
90,000 Knight Ridder, Inc........................... 4,526,831 4,944,375
------------- -------------
RESTAURANTS AND FRANCHISING - 1.07%
213,400 Starbucks Corp. (a).......................... 3,218,888 8,015,838
------------- -------------
RETAIL-DEPARTMENT STORES - 0.84%
81,300 Kohl's Corp. (a)............................. 3,673,310 6,275,344
------------- -------------
RETAIL-MISCELLANEOUS - 2.23%
135,000 Best Buy Co., Inc. (a)....................... 3,502,258 9,112,500
80,600 Consolidated Stores Corp. (a)................ 2,910,589 2,176,200
225,000 Family Dollar Stores, Inc.................... 5,015,712 5,400,000
------------- -------------
11,428,559 16,688,700
------------- -------------
RETAIL-SPECIALTY - 4.08%
180,000 Bed Bath & Beyond, Inc. (a).................. 6,686,351 6,930,000
231,600 Home Depot, Inc.............................. 4,015,606 14,923,725
281,530 Staples, Inc. (a)............................ 2,874,749 8,709,834
------------- -------------
13,576,706 30,563,559
------------- -------------
TELECOMMUNICATION
EQUIPMENT - 3.75%
59,300 ANTEC Corp. (a).............................. 1,553,323 1,901,306
225,000 CIENA Corp. (a).............................. 6,440,841 6,792,188
180,000 CommScope, Inc. (a).......................... 4,739,157 5,535,000
149,600 E-Tek Dynamics, Inc. (a)..................... 6,377,434 7,115,350
135,000 Nextel Communications, Inc. (a).............. 5,380,875 6,775,313
------------- -------------
24,491,630 28,119,157
------------- -------------
TELECOMMUNICATIONS - 0.68%
224,700 Amdocs Ltd. (a).............................. 5,112,760 5,111,925
------------- -------------
TELEPHONE SERVICES - 0.75%
65,000 MCI WorldCom, Inc. (a)....................... 1,045,024 5,606,250
------------- -------------
UTILITIES-ELECTRIC - 1.15%
122,600 Montana Power Co............................. 8,773,966 8,643,300
------------- -------------
WASTE DISPOSAL - 1.34%
405,000 Republic Services, Inc. (a).................. 9,564,596 10,023,750
------------- -------------
TOTAL COMMON STOCKS.......................... $ 590,927,360 $ 727,520,428
------------- -------------
------------- -------------
</TABLE>
79
<PAGE>
FORTIS SERIES FUND, INC.
GROWTH STOCK SERIES (CONTINUED)
Schedule of Investments
June 30, 1999 (Unaudited)
SHORT-TERM INVESTMENTS - 3.11%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
------------ -------------
<C> <S> <C>
BANKS - 0.51%
$ 3,825,224 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 4.91%........ $ 3,825,224
-------------
DIVERSIFIED FINANCE - 1.93%
14,505,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.01%...................... 14,505,000
-------------
U.S. GOVERNMENT AGENCY - 0.67%
5,000,000 Federal Home Loan Mortgage Corp., 4.95%
7-15-1999.................................. 4,989,875
-------------
TOTAL SHORT-TERM INVESTMENTS................. 23,320,099
-------------
-------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$614,247,459) (B).......................... $ 750,840,527
-------------
-------------
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 1999, the cost of securities for federal income tax purposes
was $614,770,585 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $148,218,895
Unrealized depreciation..................................... (12,148,953)
- --------------------------------------------------------------------------
Net unrealized appreciation................................. $136,069,942
- --------------------------------------------------------------------------
</TABLE>
(c) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets. Market value of investments in foreign
securities represents 2.94% of total net assets as of June 30, 1999.
80
<PAGE>
FORTIS SERIES FUND, INC.
AGGRESSIVE GROWTH SERIES
Schedule of Investments
June 30, 1999 (Unaudited)
COMMON STOCKS-99.37%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
-------- ------------- -------------
<C> <S> <C> <C>
ADVERTISING-PUBLIC RELATIONS - 0.42%
40,000 Getty Images, Inc. (a)....................... $ 939,688 $ 755,000
------------- -------------
AIR FREIGHT - 1.08%
45,000 Eagle USA Airfreight, Inc. (a)............... 1,596,407 1,909,687
------------- -------------
APPAREL - 1.46%
35,000 Bebe Stores, Inc............................. 1,207,657 1,190,000
50,200 Kenneth Cole Productions, Inc. Class B (a)... 1,334,702 1,399,325
------------- -------------
2,542,359 2,589,325
------------- -------------
BEVERAGE - 0.99%
42,000 Beringer Wine Estates Holdings, Inc. Class B
(a)........................................ 1,596,549 1,754,812
------------- -------------
BROADCASTING - 1.83%
40,000 Citadel Communications Corp. (a)............. 1,172,688 1,447,500
38,750 Radio One, Inc. (a).......................... 1,177,845 1,801,875
------------- -------------
2,350,533 3,249,375
------------- -------------
BROKERAGE AND INVESTMENT - 1.62%
48,000 Eaton Vance Corp............................. 1,240,243 1,653,000
33,000 Hambrecht & Quist Group (a).................. 1,271,695 1,225,125
------------- -------------
2,511,938 2,878,125
------------- -------------
BUILDING MATERIALS - 0.58%
90,000 Dal-Tile International, Inc. (a)............. 1,049,400 1,023,750
------------- -------------
BUSINESS SERVICES - 7.78%
22,700 ANADIGICS, Inc. (a).......................... 664,550 839,900
5,000 Ariba, Inc. (a).............................. 115,000 486,250
10,000 CareInsite, Inc. (a)......................... 253,437 472,500
53,500 ChiRex, Inc. (a)............................. 1,236,031 1,718,687
20,000 CyberSource Corp. (a)........................ 220,000 295,000
65,000 MessageMedia, Inc. (a)....................... 1,100,781 1,235,000
20,000 Micrel, Inc. (a)............................. 1,378,750 1,480,000
60,000 Nielsen Media Research, Inc.................. 1,277,259 1,755,000
50,000 NorthEast Optic Network, Inc. (a)............ 940,625 753,125
40,000 Quanta Services, Inc. (a).................... 930,000 1,760,000
10,000 Safeguard Scientifics, Inc. (a).............. 520,002 620,000
37,500 Showcase Corp. (a)........................... 337,500 323,437
37,500 Student Advantage, Inc. (a).................. 300,000 356,250
78,125 Tetra Tech, Inc. (a)......................... 1,500,000 1,289,062
6,000 Verio, Inc. (a).............................. 284,558 417,000
------------- -------------
11,058,493 13,801,211
------------- -------------
COMPUTER-HARDWARE - 1.92%
35,000 Advanced Digital Information Corp. (a) 1,360,936 1,417,500
20,000 Mercury Computer Systems, Inc................ 570,938 645,000
30,000 MMC Networks, Inc. (a)....................... 918,438 1,342,500
------------- -------------
2,850,312 3,405,000
------------- -------------
COMPUTER-SOFTWARE - 19.99%
76,500 Apex PC Solutions, Inc. (a).................. 1,006,639 1,568,250
80,000 Ardent Software, Inc. (a).................... 1,577,372 1,700,000
60,000 Aspect Development, Inc. (a)................. 1,000,938 1,110,000
40,000 AVT Corp. (a)................................ 1,148,749 1,515,000
91,000 Business Objects S.A. ADR (a)................ 2,078,841 3,321,500
35,000 Citrix Systems, Inc. (a)..................... 1,072,021 1,977,500
35,000 Clarify, Inc. (a)............................ 933,595 1,443,750
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------- -------------
<C> <S> <C> <C>
7,000 CMGI, Inc. (a)............................... $ 701,000 $ 798,437
62,500 Cognizant Technology Solutions Corp. (a)..... 2,129,203 1,628,906
27,500 Emulex Corp. (a)............................. 1,872,812 3,057,656
57,000 Fundtech Ltd. (a)............................ 1,655,720 1,478,437
47,500 Information Resource Engineering, Inc. (a)... 1,403,533 1,430,937
18,000 InfoSpace.com, Inc. (a)...................... 869,251 846,000
66,000 ISS Group, Inc. (a).......................... 1,558,891 2,491,500
48,000 Mercury Interactive Corp. (a)................ 869,702 1,698,000
30,000 Micromuse, Inc. (a).......................... 1,203,750 1,496,250
27,000 Pixar, Inc. (a).............................. 1,299,875 1,164,375
42,500 SanDisk Corp. (a)............................ 1,273,921 1,912,500
110,000 SOFTWORKS, Inc. (a).......................... 1,155,000 1,210,000
63,000 TSI International Software Ltd. (a).......... 1,022,469 1,787,625
39,500 WebTrends Corp. (a).......................... 1,660,906 1,821,937
------------- -------------
27,494,188 35,458,560
------------- -------------
CONSTRUCTION - 2.07%
35,000 Astec Industries, Inc. (a)................... 1,271,972 1,426,250
40,000 Dycom Industries, Inc. (a)................... 1,940,000 2,240,000
------------- -------------
3,211,972 3,666,250
------------- -------------
DRUGS - 5.25%
37,500 Accredo Health, Inc. (a)..................... 600,000 1,228,125
46,000 Advance Paradigm, Inc. (a)................... 2,588,147 2,806,000
35,000 Alkermes, Inc. (a)........................... 1,087,702 809,375
73,000 Anesta Corp. (a)............................. 1,595,258 1,491,937
205,000 Cubist Pharmaceuticals, Inc. (a)............. 935,546 807,187
55,000 Jones Pharma, Inc............................ 2,152,969 2,165,625
------------- -------------
8,959,622 9,308,249
------------- -------------
EDUCATIONAL SERVICES - 1.41%
22,500 Career Education Corp. (a)................... 345,000 760,781
37,500 Corinthian Colleges, Inc. (a)................ 659,687 707,812
39,800 ITT Educational Services, Inc. (a)........... 1,173,447 1,037,287
------------- -------------
2,178,134 2,505,880
------------- -------------
ELECTRIC-PRODUCTS - 0.55%
100,000 Identix, Inc. (a)............................ 1,029,405 981,250
------------- -------------
ELECTRICAL EQUIPMENT - 1.31%
40,000 Proxim, Inc. (a)............................. 1,593,749 2,320,000
------------- -------------
ELECTRONIC COMPONENTS - 9.46%
35,150 Alpha Industries, Inc. (a)................... 778,519 1,674,019
30,000 Applied Micro Circuits Corp. (a)............. 1,290,313 2,467,500
20,000 ATMI, Inc. (a)............................... 560,468 595,000
50,000 DSP Communications, Inc. (a)................. 1,300,657 1,443,750
22,500 Flextronics International Ltd. (a)........... 1,073,562 1,248,750
29,500 Genesis Microchip, Inc. (a).................. 878,021 696,937
20,000 GlobeSpan, Inc. (a).......................... 492,625 795,000
75,000 MKS Instruments, Inc. (a).................... 1,050,000 1,396,875
23,000 Oak Industries, Inc. (a)..................... 1,155,771 1,004,813
37,500 Optical Coating Laboratory, Inc.............. 2,144,375 3,135,938
15,000 PMC-Sierra, Inc. (a)......................... 802,624 884,063
3,000 QLogic Corp. (a)............................. 154,786 396,000
20,000 Semtech Corp. (a)............................ 839,688 1,042,500
------------- -------------
12,521,409 16,781,145
------------- -------------
</TABLE>
81
<PAGE>
FORTIS SERIES FUND, INC.
AGGRESSIVE GROWTH SERIES (CONTINUED)
Schedule of Investments
June 30, 1999 (Unaudited)
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------- -------------
<C> <S> <C> <C>
ELECTRONIC-COMMUNICATION
SECURITY - 0.68%
14,000 VeriSign, Inc. (a)........................... $ 938,016 $ 1,207,500
------------- -------------
ELECTRONIC-CONTROLS AND
EQUIPMENT - 1.04%
32,000 Harmonic, Inc. (a)........................... 1,028,863 1,838,000
------------- -------------
ELECTRONIC-SEMICONDUCTOR AND CAPACITOR -
3.96%
50,000 Galileo Technology Ltd. (a).................. 1,977,655 2,265,625
23,500 hi/fn, Inc. (a).............................. 933,703 1,788,938
10,000 SDL, Inc. (a)................................ 549,453 510,625
10,000 TranSwitch Corp. (a)......................... 314,375 473,750
35,000 TriQuint Semiconductor, Inc. (a)............. 1,306,251 1,988,438
------------- -------------
5,081,437 7,027,376
------------- -------------
FINANCIAL SERVICES - 1.67%
42,000 Financial Federal Corp. (a).................. 870,801 924,000
50,000 Metris Companies, Inc........................ 706,909 2,037,500
------------- -------------
1,577,710 2,961,500
------------- -------------
HEALTH CARE SERVICES - 3.48%
60,000 Hooper Holmes, Inc........................... 1,271,100 1,222,500
67,000 Renal Care Group, Inc. (a)................... 1,982,314 1,733,625
67,000 TLC The Laser Center, Inc. (a)............... 1,784,579 3,216,000
------------- -------------
5,037,993 6,172,125
------------- -------------
HOTEL AND GAMING - 1.28%
60,000 Station Casinos, Inc. (a).................... 1,047,690 1,222,500
45,000 U.S. Franchise Systems, Inc. Class A (a)..... 864,689 1,043,438
------------- -------------
1,912,379 2,265,938
------------- -------------
INSURANCE - 0.96%
25,000 E.W. Blanch Holdings, Inc.................... 1,522,017 1,704,688
------------- -------------
LEISURE TIME-AMUSEMENTS - 0.62%
28,000 Speedway Motorsports, Inc. (a)............... 1,208,233 1,100,750
------------- -------------
MACHINERY - 1.03%
45,000 Advanced Energy Industries, Inc. (a)......... 1,005,631 1,825,313
------------- -------------
MEDICAL SUPPLIES - 2.03%
31,000 MiniMed, Inc. (a)............................ 2,162,612 2,385,063
25,000 Xomed Surgical Products, Inc. (a)............ 1,094,063 1,217,188
------------- -------------
3,256,675 3,602,251
------------- -------------
MOTION PICTURES - 1.01%
24,000 Macrovision Corp. (a)........................ 742,312 1,797,000
------------- -------------
PAPER - 0.56%
55,000 Wausau-Mosinee Paper Corp.................... 945,528 990,000
------------- -------------
REAL ESTATE-INVESTMENT TRUST - 0.86%
95,000 IndyMac Mortgage Holdings, Inc............... 1,482,523 1,520,000
------------- -------------
RETAIL-CLOTHING - 2.39%
25,000 AnnTaylor Stores Corp. (a)................... 1,309,975 1,125,000
43,000 Children's Place Retail Stores, Inc. (a)..... 1,290,942 1,741,500
56,100 Pacific Sunwear of California, Inc. (a)...... 930,514 1,367,438
------------- -------------
3,531,431 4,233,938
------------- -------------
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------- -------------
<C> <S> <C> <C>
RETAIL-DISCOUNT STORES - 0.87%
34,000 Ames Department Stores, Inc. (a)............. $ 1,176,132 $ 1,551,250
------------- -------------
RETAIL-HOUSEHOLD FURNITURE - 0.90%
35,000 Cost Plus, Inc. (a).......................... 1,252,095 1,592,500
------------- -------------
RETAIL-MISCELLANEOUS - 3.83%
30,000 99 Cents Only Stores (a)..................... 1,290,960 1,498,125
53,900 Action Performance Companies, Inc. (a)....... 1,443,312 1,778,700
73,950 Insight Enterprises, Inc. (a)................ 1,619,738 1,830,263
30,000 Zale Corp. (a)............................... 1,149,015 1,200,000
50,000 Zany Brainy, Inc. (a)........................ 500,000 484,375
------------- -------------
6,003,025 6,791,463
------------- -------------
RETAIL-SPECIALTY - 0.57%
23,000 Linens 'n Things, Inc. (a)................... 1,099,614 1,006,250
------------- -------------
RETAIL-VARIETY AND VARIETY MAIL
ORDER - 1.46%
13,100 eToys, Inc. (a).............................. 701,775 533,825
94,500 J. Jill Group, Inc. (a)...................... 1,006,793 1,382,063
75,000 Shop At Home, Inc. (a)....................... 743,205 667,969
------------- -------------
2,451,773 2,583,857
------------- -------------
TELECOMMUNICATION
EQUIPMENT - 6.19%
50,000 CommScope, Inc. (a).......................... 788,075 1,537,500
60,000 Metro One Telecommunications, Inc. (a)....... 929,753 825,000
95,000 Microwave Power Devices, Inc. (a)............ 848,513 1,460,625
80,000 Periphonics Corp............................. 1,319,999 1,310,000
30,000 Polycom, Inc................................. 1,189,530 1,170,000
44,000 RF Micro Devices, Inc. (a)................... 1,486,875 3,283,500
25,000 Terayon Communications Systems, Inc. (a)..... 1,059,375 1,396,875
------------- -------------
7,622,120 10,983,500
------------- -------------
TELECOMMUNICATIONS - 1.90%
18,500 Copper Mountain Networks, Inc. (a)........... 1,161,241 1,429,125
50,000 Gilat Communications Ltd. (a)................ 699,220 800,000
7,700 Juniper Networks, Inc. (a)................... 261,800 1,147,300
------------- -------------
2,122,261 3,376,425
------------- -------------
TELEPHONE SERVICES - 1.46%
70,000 Digital Microwave Corp. (a).................. 1,031,219 892,500
35,000 WinStar Communications, Inc. (a)............. 1,168,595 1,706,250
------------- -------------
2,199,814 2,598,750
------------- -------------
TOYS - 1.34%
80,000 JAKKS Pacific, Inc. (a)...................... 1,765,484 2,385,000
------------- -------------
TRANSPORTATION - 0.75%
47,500 Forward Air Corp. (a)........................ 1,021,252 1,335,938
------------- -------------
WASTE DISPOSAL - 0.81%
47,000 Waste Connections, Inc. (a).................. 847,109 1,433,500
------------- -------------
TOTAL COMMON STOCKS.......................... $ 140,315,585 $ 176,272,431
------------- -------------
------------- -------------
</TABLE>
82
<PAGE>
SHORT-TERM INVESTMENTS - 3.46%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
----------- -------------
<C> <S> <C>
BANKS - 1.45%
$2,576,911 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 4.91%........ $ 2,576,911
-------------
DIVERSIFIED FINANCE - 2.01%
3,561,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.01%...................... 3,561,000
-------------
TOTAL SHORT-TERM INVESTMENTS................. 6,137,911
-------------
-------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$146,453,496) (B).......................... $ 182,410,342
-------------
-------------
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 1999, the cost of securities for federal income tax purposes
was $146,482,477 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation.......................................... $40,594,838
Unrealized depreciation.......................................... (4,666,973)
- ------------------------------------------------------------------------------
Net unrealized appreciation...................................... $35,927,865
- ------------------------------------------------------------------------------
</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 5.81% of total net assets as of June 30, 1999.
83
<PAGE>
FORTIS SERIES FUND, INC.
Statements of Assets and Liabilities (Unaudited)
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY U.S. GOV'T. DIVERSIFIED GLOBAL HIGH
MARKET SECURITIES INCOME BOND YIELD
SERIES SERIES SERIES SERIES SERIES
------------ ------------- ------------- ------------ ------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments in securities, as detailed
in the accompanying schedules, at
market* (Note 1).................... $88,087,472 $148,268,407 $106,361,723 $24,385,278 $69,660,498
Foreign currency on deposit with
custodian........................... -- -- -- 167,371 --
Collateral for securities lending
transactions (Note 1)............... -- -- -- -- --
Receivables:
Unrealized appreciation on forward
foreign currency contracts -- net
(Note 1 and 3).................... -- -- -- 19,014 --
Investment securities sold.......... -- -- 1,479,375 -- 450,000
Interest and dividends.............. 21,135 1,227,971 1,693,548 610,886 1,358,497
Subscriptions of capital stock...... 76,101 -- 2,677 14,108 --
Prepaid expenses...................... 1,156 2,569 1,449 2,126 734
------------ ------------- ------------- ------------ ------------
TOTAL ASSETS............................ 88,185,864 149,498,947 109,538,772 25,198,783 71,469,729
------------ ------------- ------------- ------------ ------------
LIABILITIES:
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........................... -- 1,437,891 -- -- --
Redemptions of capital stock.......... 997,791 56,472 26,522 28 74,370
Payable for investment advisory and
management fees (Note 2)............ 21,304 56,562 42,455 15,548 29,366
Accounts payable and accrued
expenses............................ 8,371 24,543 18,619 10,365 13,078
------------ ------------- ------------- ------------ ------------
TOTAL LIABILITIES....................... 1,027,466 1,575,468 87,596 25,941 116,814
------------ ------------- ------------- ------------ ------------
NET ASSETS:
Net proceeds of capital stock, par
value $.01 per share -- authorized
20,000,000,000 shares;**............ 81,971,949 154,971,665 110,744,669 26,020,106 73,522,292
Unrealized appreciation (depreciation)
of investments in securities and
other assets and liabilities
denominated in foreign currency..... -- (575,574) (2,800,018) (1,047,954) (4,771,703)
Undistributed net investment income
(loss).............................. 5,251,922 12,162,393 10,947,051 206,587 9,554,327
Accumulated net realized gain (loss)
from sale of investments and foreign
currency............................ (65,473) (18,635,005) (9,440,526) (5,897) (6,952,001)
------------ ------------- ------------- ------------ ------------
TOTAL NET ASSETS........................ $87,158,398 $147,923,479 $109,451,176 $25,172,842 $71,352,915
------------ ------------- ------------- ------------ ------------
------------ ------------- ------------- ------------ ------------
NET ASSET VALUE PER SHARE............... $11.32 $10.69 $11.70 $10.56 $9.87
------------ ------------- ------------- ------------ ------------
------------ ------------- ------------- ------------ ------------
*Cost................................... $88,087,472 $148,843,981 $109,161,741 $25,434,622 $74,432,201
**Outstanding shares.................... 7,700,310 13,833,730 9,357,970 2,384,855 7,226,025
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
84
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL ASSET ASSET GROWTH & S & P
ALLOCATION ALLOCATION VALUE INCOME 500 INDEX
SERIES SERIES SERIES SERIES SERIES
------------ ------------- ------------ ------------- -------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments in securities, as detailed
in the accompanying schedules, at
market* (Note 1).................... $68,321,726 $629,300,616 $96,888,594 $325,052,083 $351,599,725
Foreign currency on deposit with
custodian........................... 69,503 -- -- -- --
Collateral for securities lending
transactions (Note 1)............... -- -- 19,651,800 71,380,537 67,422,263
Receivables:
Unrealized appreciation on forward
foreign currency contracts -- net
(Note 1 and 3).................... 140,228 -- -- -- --
Investment securities sold.......... 23,266 419,782 3,502,082 -- 1,898,659
Interest and dividends.............. 828,313 3,281,806 84,136 648,480 495,810
Subscriptions of capital stock...... 74,357 -- 12,424 65,250 959,852
Prepaid expenses...................... 4,815 7,434 1,700 3,597 4,972
------------ ------------- ------------ ------------- -------------
TOTAL ASSETS............................ 69,462,208 633,009,638 120,140,736 397,149,947 422,381,281
------------ ------------- ------------ ------------- -------------
LIABILITIES:
Unrealized depreciation on forward
foreign currency contracts -- net
(Note 1 and 3)...................... -- -- -- -- --
Payable upon return of securities
loaned (Note 1)..................... -- -- 19,651,800 71,380,537 67,422,263
Payable for investment securities
purchased........................... 39,072 6,868,900 4,207,474 -- 427,040
Redemptions of capital stock.......... 298 324,102 16,175 -- 12,650
Payable for investment advisory and
management fees (Note 2)............ 51,132 236,946 53,484 165,980 110,218
Accounts payable and accrued
expenses............................ 21,257 69,691 10,898 35,750 35,645
------------ ------------- ------------ ------------- -------------
TOTAL LIABILITIES....................... 111,759 7,499,639 23,939,831 71,582,267 68,007,816
------------ ------------- ------------ ------------- -------------
NET ASSETS:
Net proceeds of capital stock, par
value $.01 per share -- authorized
20,000,000,000 shares;**............ 59,717,676 410,576,950 77,879,463 204,850,506 264,039,537
Unrealized appreciation (depreciation)
of investments in securities and
other assets and liabilities
denominated in foreign currency..... 5,878,029 74,382,623 8,912,942 75,404,966 87,042,874
Undistributed net investment income
(loss).............................. 709,783 20,956,657 488,999 9,508,498 1,504,617
Accumulated net realized gain (loss)
from sale of investments and foreign
currency............................ 3,044,961 119,593,769 8,919,501 35,803,710 1,786,437
------------ ------------- ------------ ------------- -------------
TOTAL NET ASSETS........................ $69,350,449 $625,509,999 $96,200,905 $325,567,680 $354,373,465
------------ ------------- ------------ ------------- -------------
------------ ------------- ------------ ------------- -------------
NET ASSET VALUE PER SHARE............... $14.16 $22.25 $15.89 $22.88 $21.10
------------ ------------- ------------ ------------- -------------
------------ ------------- ------------ ------------- -------------
*Cost................................... $62,556,421 $554,917,993 $87,975,652 $249,647,117 $264,804,551
**Outstanding shares.................... 4,896,962 28,112,618 6,055,343 14,226,578 16,793,906
<CAPTION>
BLUE CHIP INTERNATIONAL MID CAP
STOCK STOCK STOCK
SERIES SERIES SERIES
------------- ------------- ------------
<S> <C> <C> <C>
ASSETS:
Investments in securities, as detailed
in the accompanying schedules, at
market* (Note 1).................... $245,242,926 $112,709,392 $18,466,706
Foreign currency on deposit with
custodian........................... -- -- --
Collateral for securities lending
transactions (Note 1)............... 56,645,699 -- --
Receivables:
Unrealized appreciation on forward
foreign currency contracts -- net
(Note 1 and 3).................... -- -- --
Investment securities sold.......... 665,148 243,445 370,762
Interest and dividends.............. 153,689 745,520 15,407
Subscriptions of capital stock...... 80,944 48,602 21,425
Prepaid expenses...................... 2,903 2,384 4,389
------------- ------------- ------------
TOTAL ASSETS............................ 302,791,309 113,749,343 18,878,689
------------- ------------- ------------
LIABILITIES:
Unrealized depreciation on forward
foreign currency contracts -- net
(Note 1 and 3)...................... -- 802 --
Payable upon return of securities
loaned (Note 1)..................... 56,645,699 -- --
Payable for investment securities
purchased........................... 1,606,145 246,218 --
Redemptions of capital stock.......... 235 434 30
Payable for investment advisory and
management fees (Note 2)............ 166,556 77,715 13,206
Accounts payable and accrued
expenses............................ 21,092 38,524 11,448
------------- ------------- ------------
TOTAL LIABILITIES....................... 58,439,727 363,693 24,684
------------- ------------- ------------
NET ASSETS:
Net proceeds of capital stock, par
value $.01 per share -- authorized
20,000,000,000 shares;**............ 182,361,420 92,144,272 17,342,636
Unrealized appreciation (depreciation)
of investments in securities and
other assets and liabilities
denominated in foreign currency..... 58,695,229 19,434,682 1,702,620
Undistributed net investment income
(loss).............................. 217,840 1,451,014 3,715
Accumulated net realized gain (loss)
from sale of investments and foreign
currency............................ 3,077,093 355,682 (194,966)
------------- ------------- ------------
TOTAL NET ASSETS........................ $244,351,582 $113,385,650 $18,854,005
------------- ------------- ------------
------------- ------------- ------------
NET ASSET VALUE PER SHARE............... $20.40 $15.29 $10.03
------------- ------------- ------------
------------- ------------- ------------
*Cost................................... $186,547,695 $ 93,253,527 $16,768,661
**Outstanding shares.................... 11,980,056 7,417,702 1,879,238
</TABLE>
85
<PAGE>
FORTIS SERIES FUND, INC.
Statements of Assets and Liabilities (Unaudited) (continued)
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL CAP GLOBAL LARGE CAP GROWTH AGGRESSIVE
VALUE GROWTH GROWTH STOCK GROWTH
SERIES SERIES SERIES SERIES SERIES
------------ ------------- ------------ ------------- -------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments in securities, as detailed
in the accompanying schedules, at
market* (Note 1).................... $29,516,116 $349,474,490 $50,514,926 $750,840,527 $182,410,342
Foreign currency on deposit with
custodian........................... -- -- -- -- --
Collateral for securities lending
transactions (Note 1)............... -- 101,874,340 -- -- 30,125,488
Receivables:
Unrealized appreciation on forward
foreign currency contracts -- net
(Note 1 and 3).................... -- -- -- -- --
Investment securities sold.......... 73,123 129,494 -- 11,065,382 6,639,644
Interest and dividends.............. 37,280 824,458 32,328 287,237 30,589
Subscriptions of capital stock...... 149,624 560 21,321 -- 481,420
Prepaid expenses...................... 723 2,296 1,176 7,733 989
------------ ------------- ------------ ------------- -------------
TOTAL ASSETS............................ 29,776,866 452,305,638 50,569,751 762,200,879 219,688,472
------------ ------------- ------------ ------------- -------------
LIABILITIES:
Unrealized depreciation on forward
foreign currency contracts -- net
(Note 1 and 3)...................... -- -- -- -- --
Payable upon return of securities
loaned (Note 1)..................... -- 101,874,340 -- -- 30,125,488
Payable for investment securities
purchased........................... 619,035 -- 127,681 11,655,337 12,067,418
Redemptions of capital stock.......... 26 198,291 45,980 363,877 --
Payable for investment advisory and
management fees (Note 2)............ 20,008 195,076 34,210 362,651 87,349
Accounts payable and accrued
expenses............................ 7,518 80,735 6,117 86,031 23,918
------------ ------------- ------------ ------------- -------------
TOTAL LIABILITIES....................... 646,587 102,348,442 213,988 12,467,896 42,304,173
------------ ------------- ------------ ------------- -------------
NET ASSETS:
Net proceeds of capital stock, par
value $.01 per share -- authorized
20,000,000,000 shares;**............ 25,225,721 168,242,874 43,263,020 307,681,414 109,319,725
Unrealized appreciation (depreciation)
of investments in securities and
other assets and liabilities
denominated in foreign currency..... 2,529,941 135,390,450 6,232,935 136,593,068 35,956,846
Undistributed net investment income
(loss).............................. 168,282 950,975 2,921 1,022,960 (220,466)
Accumulated net realized gain (loss)
from sale of investments and foreign
currency............................ 1,206,335 45,372,897 856,887 304,435,541 32,328,194
------------ ------------- ------------ ------------- -------------
TOTAL NET ASSETS........................ $29,130,279 $349,957,196 $50,355,763 $749,732,983 $177,384,299
------------ ------------- ------------ ------------- -------------
------------ ------------- ------------ ------------- -------------
NET ASSET VALUE PER SHARE............... $10.79 $24.90 $13.78 $43.23 $20.01
------------ ------------- ------------ ------------- -------------
------------ ------------- ------------ ------------- -------------
*Cost................................... $26,986,175 $214,070,663 $44,281,991 $614,247,459 $146,453,496
**Outstanding shares.................... 2,699,128 14,052,395 3,653,899 17,343,616 8,865,608
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
86
<PAGE>
FORTIS SERIES FUND, INC.
Statements of Operations (Unaudited)
For the Six-Month Period Ended June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY U.S. GOV'T. DIVERSIFIED GLOBAL HIGH
MARKET SECURITIES INCOME BOND YIELD
SERIES SERIES SERIES SERIES SERIES
----------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME (LOSS):
Income:
Interest income..................... $2,040,915 $ 4,582,054 $ 4,015,309 $ 588,700 $ 3,382,762
Dividend Income..................... -- -- -- -- 13,045
Fee income (Note 1)................. -- -- -- -- --
----------- ------------ ------------ ------------ ------------
Total Income *........................ 2,040,915 4,582,054 4,015,309 588,700 3,395,807
----------- ------------ ------------ ------------ ------------
Expenses:
Investment advisory and management
fees (Note 2)..................... 123,822 349,971 266,604 93,971 181,373
Legal and auditing fees (Note 2).... 6,896 11,329 9,289 8,728 8,777
Custodian fees...................... 2,059 4,959 4,711 4,959 3,954
Shareholders' notices and reports... 7,160 16,027 11,977 2,291 6,757
Directors' fees and expenses........ 967 2,281 2,223 1,572 1,042
Other............................... 576 3,909 2,747 533 2,179
----------- ------------ ------------ ------------ ------------
Total Expenses........................ 141,480 388,476 297,551 112,054 204,082
----------- ------------ ------------ ------------ ------------
NET INVESTMENT INCOME (LOSS)............ 1,899,435 4,193,578 3,717,758 476,646 3,191,725
----------- ------------ ------------ ------------ ------------
REALIZED & UNREALIZED GAIN (LOSS) ON
INVESTMENTS & FOREIGN CURRENCY
TRANSACTIONS: (NOTE 1)
Net realized gain (loss) from:
Investments......................... -- (1,341,674) (900,402) (196,001) (5,367,641)
Foreign currency transactions....... -- -- -- (123,259) --
Future contracts.................... -- -- -- -- --
----------- ------------ ------------ ------------ ------------
NET REALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS..... -- (1,341,674) (900,402) (319,260) (5,367,641)
----------- ------------ ------------ ------------ ------------
NET CHANGES IN UNREALIZED APPRECIATION
(DEPRECIATION) OF:
Investments........................... -- (6,133,560) (4,892,770) (993,626) 1,943,272
Translation of assets and liabilities
denominated in foreign currency..... -- -- -- (1,459,759) --
----------- ------------ ------------ ------------ ------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS......... -- (6,133,560) (4,892,770) (2,453,385) 1,943,272
----------- ------------ ------------ ------------ ------------
NET GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY...................... -- (7,475,234) (5,793,172) (2,772,645) (3,424,369)
----------- ------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. $1,899,435 $(3,281,656) $(2,075,414) $(2,295,999) $ (232,644)
----------- ------------ ------------ ------------ ------------
----------- ------------ ------------ ------------ ------------
</TABLE>
<TABLE>
<CAPTION>
*Net of foreign witholding taxes of:
<S> <C>
Global Bond Series $ 4,462
Asset Allocation Series 23,082
Global Asset Allocation Series 30,708
Value Series 8,944
S&P 500 Index Series 23,902
Blue Chip Stock Series 3,627
Global Growth Series 113,882
Growth Stock Series 8,052
International Stock Series 155,795
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
87
<PAGE>
FORTIS SERIES FUND, INC.
Statements of Operations (Unaudited) (continued)
For the Six-Month Period Ended June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL ASSET ASSET GROWTH & S & P
ALLOCATION ALLOCATION VALUE INCOME 500 INDEX
SERIES SERIES SERIES SERIES SERIES
------------ ------------- ----------- ------------ ------------
<S> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME (LOSS):
Income:
Interest income..................... $ 679,488 $ 7,033,852 $ 64,231 $ 347,542 $ 179,988
Dividend Income..................... 556,289 1,732,795 752,060 3,152,110 1,972,669
Fee income (Note 1)................. -- -- 4,928 57,523 15,269
------------ ------------- ----------- ------------ ------------
Total Income *........................ 1,235,777 8,766,647 821,219 3,557,175 2,167,926
------------ ------------- ----------- ------------ ------------
Expenses:
Investment advisory and management
fees (Note 2)..................... 306,237 1,420,020 313,663 993,180 600,503
Legal and auditing fees (Note 2).... 9,174 21,006 10,665 14,422 14,859
Custodian fees...................... 14,877 14,941 3,970 6,953 28,770
Shareholders' notices and reports... 6,217 56,467 8,797 36,510 24,039
Directors' fees and expenses........ 917 8,024 1,144 4,321 4,093
Other............................... 1,444 13,131 3,412 6,495 11,950
------------ ------------- ----------- ------------ ------------
Total Expenses........................ 338,866 1,533,589 341,651 1,061,881 684,214
------------ ------------- ----------- ------------ ------------
NET INVESTMENT INCOME (LOSS)............ 896,911 7,233,058 479,568 2,495,294 1,483,712
------------ ------------- ----------- ------------ ------------
REALIZED & UNREALIZED GAIN (LOSS) ON
INVESTMENTS & FOREIGN CURRENCY
TRANSACTIONS: (NOTE 1)
Net realized gain (loss) from:
Investments......................... 1,675,070 74,341,951 7,962,792 22,746,946 1,426,001
Foreign currency transactions....... (183,688) -- -- -- --
Future contracts.................... -- -- -- -- 250,937
------------ ------------- ----------- ------------ ------------
NET REALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS..... 1,491,382 74,341,951 7,962,792 22,746,946 1,676,938
------------ ------------- ----------- ------------ ------------
NET CHANGES IN UNREALIZED APPRECIATION
(DEPRECIATION) OF:
Investments........................... (1,849,208) (49,138,644) 662,967 (1,334,622) 31,313,976
Translation of assets and liabilities
denominated in foreign currency..... (1,283,154) -- -- -- --
------------ ------------- ----------- ------------ ------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS......... (3,132,362) (49,138,644) 662,967 (1,334,622) 31,313,976
------------ ------------- ----------- ------------ ------------
NET GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY...................... (1,640,980) 25,203,307 8,625,759 21,412,324 32,990,914
------------ ------------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. $ (744,069) $ 32,436,365 $9,105,327 $23,907,618 $34,474,626
------------ ------------- ----------- ------------ ------------
------------ ------------- ----------- ------------ ------------
</TABLE>
<TABLE>
<CAPTION>
*Net of foreign witholding taxes of:
<S> <C>
Global Bond Series $ 4,462
Asset Allocation Series 23,082
Global Asset Allocation Series 30,708
Value Series 8,944
S&P 500 Index Series 23,902
Blue Chip Stock Series 3,627
Global Growth Series 113,882
Growth Stock Series 8,052
International Stock Series 155,795
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
88
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BLUE CHIP INTERNATIONAL MID CAP SMALL CAP GLOBAL LARGE CAP
STOCK STOCK STOCK VALUE GROWTH GROWTH
SERIES SERIES SERIES SERIES SERIES SERIES
------------ ----------- --------- ----------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME (LOSS):
Income:
Interest income..................... $ 267,952 $ 87,082 $ 19,361 $ 32,655 $ 261,269 $ 63,654
Dividend Income..................... 890,633 1,787,016 76,410 246,568 1,532,325 100,907
Fee income (Note 1)................. 13,629 -- -- -- 25,628 --
------------ ----------- --------- ----------- ------------ -----------
Total Income *........................ 1,172,214 1,874,098 95,771 279,223 1,819,222 164,561
------------ ----------- --------- ----------- ------------ -----------
Expenses:
Investment advisory and management
fees (Note 2)..................... 918,209 446,935 67,405 94,868 1,170,745 149,022
Legal and auditing fees (Note 2).... 13,788 9,655 6,500 8,974 15,125 7,196
Custodian fees...................... 10,366 25,407 16,559 7,353 34,712 5,619
Shareholders' notices and reports... 14,337 9,461 619 603 41,622 624
Directors' fees and expenses........ 3,104 1,379 124 126 5,604 127
Other............................... 4,012 2,129 849 307 9,269 320
------------ ----------- --------- ----------- ------------ -----------
Total Expenses........................ 963,816 494,966 92,056 112,231 1,277,077 162,908
------------ ----------- --------- ----------- ------------ -----------
NET INVESTMENT INCOME (LOSS)............ 208,398 1,379,132 3,715 166,992 542,145 1,653
------------ ----------- --------- ----------- ------------ -----------
REALIZED & UNREALIZED GAIN (LOSS) ON
INVESTMENTS & FOREIGN CURRENCY
TRANSACTIONS: (NOTE 1)
Net realized gain (loss) from:
Investments......................... 3,378,340 1,174,586 99,596 891,811 37,211,162 1,250,822
Foreign currency transactions....... 1 (24,383) -- -- (7,831) --
Future contracts.................... -- -- 70,925 -- -- --
------------ ----------- --------- ----------- ------------ -----------
NET REALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS..... 3,378,341 1,150,203 170,521 891,811 37,203,331 1,250,822
------------ ----------- --------- ----------- ------------ -----------
NET CHANGES IN UNREALIZED APPRECIATION
(DEPRECIATION) OF:
Investments........................... 16,893,224 3,375,484 739,851 2,801,712 (4,668,614) 2,987,140
Translation of assets and liabilities
denominated in foreign currency..... (4) (34,674) -- -- (24,004) --
------------ ----------- --------- ----------- ------------ -----------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS......... 16,893,220 3,340,810 739,851 2,801,712 (4,692,618) 2,987,140
------------ ----------- --------- ----------- ------------ -----------
NET GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY...................... 20,271,561 4,491,013 910,372 3,693,523 32,510,713 4,237,962
------------ ----------- --------- ----------- ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. $20,479,959 $5,870,145 $914,087 $3,860,515 $33,052,858 $4,239,615
------------ ----------- --------- ----------- ------------ -----------
------------ ----------- --------- ----------- ------------ -----------
<CAPTION>
GROWTH AGGRESSIVE
STOCK GROWTH
SERIES SERIES
------------- ------------
<S> <C> <C>
NET INVESTMENT INCOME (LOSS):
Income:
Interest income..................... $ 1,044,409 $ 114,659
Dividend Income..................... 841,278 56,773
Fee income (Note 1)................. -- 79,696
------------- ------------
Total Income *........................ 1,885,687 251,128
------------- ------------
Expenses:
Investment advisory and management
fees (Note 2)..................... 2,229,623 500,292
Legal and auditing fees (Note 2).... 20,922 10,092
Custodian fees...................... 17,978 13,078
Shareholders' notices and reports... 85,707 17,876
Directors' fees and expenses........ 11,186 1,998
Other............................... 18,227 3,227
------------- ------------
Total Expenses........................ 2,383,643 546,563
------------- ------------
NET INVESTMENT INCOME (LOSS)............ (497,956) (295,435)
------------- ------------
REALIZED & UNREALIZED GAIN (LOSS) ON
INVESTMENTS & FOREIGN CURRENCY
TRANSACTIONS: (NOTE 1)
Net realized gain (loss) from:
Investments......................... 81,024,211 25,890,586
Foreign currency transactions....... -- --
Future contracts.................... -- --
------------- ------------
NET REALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS..... 81,024,211 25,890,586
------------- ------------
NET CHANGES IN UNREALIZED APPRECIATION
(DEPRECIATION) OF:
Investments........................... (43,721,626) 3,629,797
Translation of assets and liabilities
denominated in foreign currency..... -- --
------------- ------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS......... (43,721,626) 3,629,797
------------- ------------
NET GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY...................... 37,302,585 29,520,383
------------- ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. $ 36,804,629 $29,224,948
------------- ------------
------------- ------------
</TABLE>
89
<PAGE>
FORTIS SERIES FUND, INC.
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
U.S. GOVERNMENT
MONEY MARKET SERIES SECURITIES SERIES
<CAPTION>
- ----------------------------------------------------------------------------------------------------
FOR THE FOR THE
SIX-MONTH SIX-MONTH
PERIOD ENDED FOR THE PERIOD ENDED FOR THE
JUNE 30, 1999 YEAR ENDED JUNE 30, 1999 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1998 (UNAUDITED) DECEMBER 31, 1998
-------------- ------------------ -------------- ------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment
income............... $ 1,899,435 $ 3,352,699 $ 4,193,578 $ 7,969,014
Net realized gain
(loss) on investments
and foreign currency
transactions......... -- -- (1,341,674) 2,483,190
Net change in
unrealized
appreciation
(depreciation) on
investments and
foreign currency..... -- -- (6,133,560) 1,611,008
-------------- ------------------ -------------- ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 1,899,435 3,352,699 (3,281,656) 12,063,212
-------------- ------------------ -------------- ------------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income............... -- (3,313,814) -- (8,884,962)
From net realized gains
on investments....... -- -- -- --
-------------- ------------------ -------------- ------------------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS........... -- (3,313,814) -- (8,884,962)
-------------- ------------------ -------------- ------------------
CAPITAL STOCK SOLD AND
REPURCHASED: (NOTE 5)
Proceeds from sale of
shares............... 45,726,215 69,216,897 8,641,908 33,885,181
Proceeds from shares
issued as a result of
reinvested
dividends............ -- 3,313,814 -- 8,884,962
Less cost of
repurchase........... (37,564,387) (52,481,696) (10,109,076) (35,345,954)
-------------- ------------------ -------------- ------------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM
SHARES TRANSACTIONS.... 8,161,828 20,049,015 (1,467,168) 7,424,189
-------------- ------------------ -------------- ------------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS.......... 10,061,263 20,087,900 (4,748,824) 10,602,439
NET ASSETS:
Beginning of period.... 77,097,135 57,009,235 152,672,303 142,069,864
-------------- ------------------ -------------- ------------------
END OF PERIOD (NOTE 4)... $ 87,158,398 $ 77,097,135 $147,923,479 $152,672,303
-------------- ------------------ -------------- ------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
ASSET ALLOCATION SERIES VALUE SERIES
<CAPTION>
- ----------------------------------------------------------------------------------------------------
FOR THE FOR THE
SIX-MONTH SIX-MONTH
PERIOD ENDED FOR THE PERIOD ENDED FOR THE
JUNE 30, 1999 YEAR ENDED JUNE 30, 1999 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1998 (UNAUDITED) DECEMBER 31, 1998
-------------- ------------------ -------------- ------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment
income............... $ 7,233,058 $ 13,723,737 $ 479,568 $ 956,048
Net realized gain
(loss) on investments
and foreign currency
transactions......... 74,341,951 45,251,936 7,962,792 1,481,511
Net change in
unrealized
appreciation
(depreciation) on
investments and
foreign currency..... (49,138,644) 37,652,297 662,967 3,744,569
-------------- ------------------ -------------- ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 32,436,365 96,627,970 9,105,327 6,182,128
-------------- ------------------ -------------- ------------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income............... -- (180,867) -- (946,617)
From net realized gains
on investments....... -- (863,229) -- (995,235)
-------------- ------------------ -------------- ------------------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS........... -- (1,044,096) -- (1,941,852)
-------------- ------------------ -------------- ------------------
CAPITAL STOCK SOLD AND
REPURCHASED: (NOTE 5)
Proceeds from sale of
shares............... 24,041,366 45,570,701 4,956,653 34,538,243
Proceeds from shares
issued as a result of
reinvested
dividends............ -- 1,044,096 -- 1,941,852
Less cost of
repurchase........... (24,845,602) (30,600,830) (5,465,468) (8,173,880)
-------------- ------------------ -------------- ------------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM
SHARES TRANSACTIONS.... (804,236) 16,013,967 (508,815) 28,306,215
-------------- ------------------ -------------- ------------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS.......... 31,632,129 111,597,841 8,596,512 32,546,491
NET ASSETS:
Beginning of period.... 593,877,870 482,280,029 87,604,393 55,057,902
-------------- ------------------ -------------- ------------------
END OF PERIOD (NOTE 4)... $625,509,999 $593,877,870 $96,200,905 $87,604,393
-------------- ------------------ -------------- ------------------
</TABLE>
90
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
DIVERSIFIED INCOME SERIES GLOBAL BOND SERIES HIGH YIELD SERIES
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
FOR THE FOR THE FOR THE
SIX-MONTH SIX-MONTH SIX-MONTH
PERIOD ENDED FOR THE PERIOD ENDED FOR THE PERIOD ENDED FOR THE
JUNE 30, 1999 YEAR ENDED JUNE 30, 1999 YEAR ENDED JUNE 30, 1999 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1998 (UNAUDITED) DECEMBER 31, 1998 (UNAUDITED) DECEMBER 31, 1998
-------------- ------------------ -------------- ------------------ -------------- ------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment
income............... $ 3,717,758 $ 7,229,885 $ 476,646 $ 914,829 $ 3,191,725 $ 6,362,736
Net realized gain
(loss) on investments
and foreign currency
transactions......... (900,402) 938,352 (319,260) 323,132 (5,367,641) (1,571,961)
Net change in
unrealized
appreciation
(depreciation) on
investments and
foreign currency..... (4,892,770) (1,442,471) (2,453,385) 1,621,443 1,943,272 (4,554,635)
-------------- ------------------ -------------- ------------------ -------------- ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ (2,075,414) 6,725,766 (2,295,999) 2,859,404 (232,644) 236,140
-------------- ------------------ -------------- ------------------ -------------- ------------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income............... -- (7,342,970) -- (386,998) -- (5,343,079)
From net realized gains
on investments....... -- -- -- (678,922) -- (417,351)
-------------- ------------------ -------------- ------------------ -------------- ------------------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS........... -- (7,342,970) -- (1,065,920) -- (5,760,430)
-------------- ------------------ -------------- ------------------ -------------- ------------------
CAPITAL STOCK SOLD AND
REPURCHASED: (NOTE 5)
Proceeds from sale of
shares............... 5,084,969 14,339,798 4,496,958 6,654,648 6,155,127 20,135,740
Proceeds from shares
issued as a result of
reinvested
dividends............ -- 7,342,970 -- 1,065,920 -- 5,760,430
Less cost of
repurchase........... (8,740,756) (11,083,127) (1,687,314) (5,546,824) (5,552,266) (8,617,622)
-------------- ------------------ -------------- ------------------ -------------- ------------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM
SHARES TRANSACTIONS.... (3,655,787) 10,599,641 2,809,644 2,173,744 602,861 17,278,548
-------------- ------------------ -------------- ------------------ -------------- ------------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS.......... (5,731,201) 9,982,437 513,645 3,967,228 370,217 11,754,258
NET ASSETS:
Beginning of period.... 115,182,377 105,199,940 24,659,197 20,691,969 70,982,698 59,228,440
-------------- ------------------ -------------- ------------------ -------------- ------------------
END OF PERIOD (NOTE 4)... $109,451,176 $115,182,377 $25,172,842 $24,659,197 $71,352,915 $70,982,698
-------------- ------------------ -------------- ------------------ -------------- ------------------
<CAPTION>
GLOBAL ASSET
ALLOCATION SERIES
- -------------------------
FOR THE
SIX-MONTH
PERIOD ENDED FOR THE
JUNE 30, 1999 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1998
-------------- ------------------
<S> <C> <C>
OPERATIONS:
Net investment
income............... $ 896,911 $ 1,292,507
Net realized gain
(loss) on investments
and foreign currency
transactions......... 1,491,382 4,146,706
Net change in
unrealized
appreciation
(depreciation) on
investments and
foreign currency..... (3,132,362) 3,438,127
-------------- ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ (744,069) 8,877,340
-------------- ------------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income............... -- (1,388,012)
From net realized gains
on investments....... -- (3,400,505)
-------------- ------------------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS........... -- (4,788,517)
-------------- ------------------
CAPITAL STOCK SOLD AND
REPURCHASED: (NOTE 5)
Proceeds from sale of
shares............... 4,871,754 12,350,058
Proceeds from shares
issued as a result of
reinvested
dividends............ -- 4,788,517
Less cost of
repurchase........... (3,863,491) (4,623,535)
-------------- ------------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM
SHARES TRANSACTIONS.... 1,008,263 12,515,040
-------------- ------------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS.......... 264,194 16,603,863
NET ASSETS:
Beginning of period.... 69,086,255 52,482,392
-------------- ------------------
END OF PERIOD (NOTE 4)... $69,350,449 $69,086,255
-------------- ------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
GROWTH & INCOME SERIES S & P 500 INDEX SERIES BLUE CHIP STOCK SERIES
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
FOR THE FOR THE FOR THE
SIX-MONTH SIX-MONTH SIX-MONTH
PERIOD ENDED FOR THE PERIOD ENDED FOR THE PERIOD ENDED FOR THE
JUNE 30, 1999 YEAR ENDED JUNE 30, 1999 YEAR ENDED JUNE 30, 1999 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1998 (UNAUDITED) DECEMBER 31, 1998 (UNAUDITED) DECEMBER 31, 1998
-------------- ------------------ -------------- ------------------ -------------- ------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment
income............... $ 2,495,294 $ 7,013,204 $ 1,483,712 $ 2,065,302 $ 208,398 $ 525,376
Net realized gain
(loss) on investments
and foreign currency
transactions......... 22,746,946 13,057,181 1,676,938 1,689,078 3,378,341 2,556,871
Net change in
unrealized
appreciation
(depreciation) on
investments and
foreign currency..... (1,334,622) 14,165,370 31,313,976 40,983,076 16,893,220 29,808,565
-------------- ------------------ -------------- ------------------ -------------- ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 23,907,618 34,235,755 34,474,626 44,737,456 20,479,959 32,890,812
-------------- ------------------ -------------- ------------------ -------------- ------------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income............... -- -- -- (2,050,052) -- (540,313)
From net realized gains
on investments....... -- (87,128) -- (1,703,968) -- (2,496,974)
-------------- ------------------ -------------- ------------------ -------------- ------------------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS........... -- (87,128) -- (3,754,020) -- (3,037,287)
-------------- ------------------ -------------- ------------------ -------------- ------------------
CAPITAL STOCK SOLD AND
REPURCHASED: (NOTE 5)
Proceeds from sale of
shares............... 7,193,635 48,859,144 83,720,970 123,716,587 42,925,534 74,531,512
Proceeds from shares
issued as a result of
reinvested
dividends............ -- 87,128 -- 3,754,020 -- 3,037,287
Less cost of
repurchase........... (18,473,063) (15,125,776) (16,654,107) (25,193,834) (1,975,302) (3,229,540)
-------------- ------------------ -------------- ------------------ -------------- ------------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM
SHARES TRANSACTIONS.... (11,279,428) 33,820,496 67,066,863 102,276,773 40,950,232 74,339,259
-------------- ------------------ -------------- ------------------ -------------- ------------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS.......... 12,628,190 67,969,123 101,541,489 143,260,209 61,430,191 104,192,784
NET ASSETS:
Beginning of period.... 312,939,490 244,970,367 252,831,976 109,571,767 182,921,391 78,728,607
-------------- ------------------ -------------- ------------------ -------------- ------------------
END OF PERIOD (NOTE 4)... $325,567,680 $312,939,490 $354,373,465 $252,831,976 $244,351,582 $182,921,391
-------------- ------------------ -------------- ------------------ -------------- ------------------
<CAPTION>
INTERNATIONAL STOCK SERIES
- -------------------------
FOR THE
SIX-MONTH
PERIOD ENDED FOR THE
JUNE 30, 1999 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1998
-------------- ------------------
<S> <C> <C>
OPERATIONS:
Net investment
income............... $ 1,379,132 $ 1,103,290
Net realized gain
(loss) on investments
and foreign currency
transactions......... 1,150,203 5,355,546
Net change in
unrealized
appreciation
(depreciation) on
investments and
foreign currency..... 3,340,810 6,940,525
-------------- ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 5,870,145 13,399,361
-------------- ------------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income............... -- (1,711,172)
From net realized gains
on investments....... -- (5,357,302)
-------------- ------------------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS........... -- (7,068,474)
-------------- ------------------
CAPITAL STOCK SOLD AND
REPURCHASED: (NOTE 5)
Proceeds from sale of
shares............... 11,531,497 26,302,212
Proceeds from shares
issued as a result of
reinvested
dividends............ -- 7,068,474
Less cost of
repurchase........... (7,071,523) (15,788,470)
-------------- ------------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM
SHARES TRANSACTIONS.... 4,459,974 17,582,216
-------------- ------------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS.......... 10,330,119 23,913,103
NET ASSETS:
Beginning of period.... 103,055,531 79,142,428
-------------- ------------------
END OF PERIOD (NOTE 4)... $113,385,650 $103,055,531
-------------- ------------------
</TABLE>
91
<PAGE>
FORTIS SERIES FUND, INC.
Statements of Changes in Net Assets (continued)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
MID CAP STOCK SERIES SMALL CAP VALUE SERIES GLOBAL GROWTH SERIES
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
FOR THE FOR THE PERIOD FOR THE FOR THE PERIOD FOR THE
SIX-MONTH MARCH 25, 1998 SIX-MONTH MARCH 25, 1998 SIX-MONTH
PERIOD ENDED (INCEPTION) TO PERIOD ENDED (INCEPTION) TO PERIOD ENDED PERIOD ENDED
JUNE 30, 1999 YEAR ENDED JUNE 30, 1999 YEAR ENDED JUNE 30, 1999 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1998 (UNAUDITED) DECEMBER 31, 1998 (UNAUDITED) DECEMBER 31, 1998
-------------- ------------------ -------------- ------------------ -------------- ------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment
income............... $ 3,715 $ 21,697 $ 166,992 $ 121,277 $ 542,145 $ 427,898
Net realized gain
(loss) on investments
and foreign currency
transactions......... 170,521 (365,487) 891,811 415,685 37,203,331 9,073,881
Net change in
unrealized
appreciation
(depreciation) on
investments and
foreign currency..... 739,851 962,769 2,801,712 (271,771) (4,692,618) 27,726,943
-------------- ------------------ -------------- ------------------ -------------- ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 914,087 618,979 3,860,515 265,191 33,052,858 37,228,722
-------------- ------------------ -------------- ------------------ -------------- ------------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income............... -- (22,320) -- (119,987) -- (390,427)
From net realized gains
on investments....... -- -- -- (101,161) -- --
-------------- ------------------ -------------- ------------------ -------------- ------------------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS........... -- (22,320) -- (221,148) -- (390,427)
-------------- ------------------ -------------- ------------------ -------------- ------------------
CAPITAL STOCK SOLD AND
REPURCHASED: (NOTE 5)
Proceeds from sale of
shares............... 5,428,673 12,640,460 9,461,575 16,846,539 4,970,017 13,480,954
Proceeds from shares
issued as a result of
reinvested
dividends............ -- 22,320 -- 221,148 -- 390,427
Less cost of
repurchase........... (483,942) (264,252) (695,274) (608,267) (39,541,833) (52,488,092)
-------------- ------------------ -------------- ------------------ -------------- ------------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM
SHARES TRANSACTIONS.... 4,944,731 12,398,528 8,766,301 16,459,420 (34,571,816) (38,616,711)
-------------- ------------------ -------------- ------------------ -------------- ------------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS.......... 5,858,818 12,995,187 12,626,816 16,503,463 (1,518,958) (1,778,416)
NET ASSETS:
Beginning of period.... 12,995,187 -- 16,503,463 -- 351,476,154 353,254,570
-------------- ------------------ -------------- ------------------ -------------- ------------------
END OF PERIOD (NOTE 4)... $18,854,005 $12,995,187 $29,130,279 $16,503,463 $349,957,196 $351,476,154
-------------- ------------------ -------------- ------------------ -------------- ------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
LARGE CAP GROWTH SERIES GROWTH STOCK SERIES AGGRESSIVE GROWTH SERIES
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
FOR THE FOR THE PERIOD FOR THE FOR THE
SIX-MONTH MARCH 25, 1998 SIX-MONTH SIX-MONTH
PERIOD ENDED (INCEPTION) TO PERIOD ENDED FOR THE PERIOD ENDED FOR THE
JUNE 30, 1999 YEAR ENDED JUNE 30, 1999 YEAR ENDED JUNE 30, 1999 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1998 (UNAUDITED) DECEMBER 31, 1998 (UNAUDITED) DECEMBER 31, 1998
-------------- ------------------ -------------- ------------------ -------------- ------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)............... $ 1,653 $ 6,172 $ (497,956) $ 1,521,945 $ (295,435) $ 75,383
Net realized gain
(loss) on investments
and foreign currency
transactions......... 1,250,822 (393,935) 81,024,211 223,412,949 25,890,586 22,180,829
Net change in
unrealized
appreciation
(depreciation) on
investments and
foreign currency..... 2,987,140 3,245,795 (43,721,626) (98,914,608) 3,629,797 4,080,141
-------------- ------------------ -------------- ------------------ -------------- ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 4,239,615 2,858,032 36,804,629 126,020,286 29,224,948 26,336,353
-------------- ------------------ -------------- ------------------ -------------- ------------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income............... -- (4,904) -- (2,325,371) -- (251,538)
From net realized gains
on investments....... -- -- -- (34,228,739) -- --
-------------- ------------------ -------------- ------------------ -------------- ------------------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS........... -- (4,904) -- (36,554,110) -- (251,538)
-------------- ------------------ -------------- ------------------ -------------- ------------------
CAPITAL STOCK SOLD AND
REPURCHASED: (NOTE 5)
Proceeds from sale of
shares............... 27,633,890 16,576,296 8,208,255 21,539,491 7,786,690 16,306,399
Proceeds from shares
issued as a result of
reinvested
dividends............ -- 4,904 -- 36,554,110 -- 251,538
Less cost of
repurchase........... (638,472) (313,598) (57,633,668) (92,360,796) (9,487,017) (15,238,234)
-------------- ------------------ -------------- ------------------ -------------- ------------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM
SHARES TRANSACTIONS.... 26,995,418 16,267,602 (49,425,413) (34,267,195) (1,700,327) 1,319,703
-------------- ------------------ -------------- ------------------ -------------- ------------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS.......... 31,235,033 19,120,730 (12,620,784) 55,198,981 27,524,621 27,404,518
NET ASSETS:
Beginning of period.... 19,120,730 -- 762,353,767 707,154,786 149,859,678 122,455,160
-------------- ------------------ -------------- ------------------ -------------- ------------------
END OF PERIOD (NOTE 4)... $50,355,763 $19,120,730 $749,732,983 $762,353,767 $177,384,299 $149,859,678
-------------- ------------------ -------------- ------------------ -------------- ------------------
</TABLE>
92
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (Unaudited)
- --------------------------------------------------------------------------------
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: The Series is an open-end
management investment company which currently is comprised of eighteen
separate investment portfolios and series of capital stock: Money Market
Series, U.S. Government Securities Series, Diversified Income Series, High
Yield Series, Global Asset Allocation Series, Asset Allocation Series, Value
Series, Growth & Income Series, S & P 500 Index Series, Blue Chip Stock
Series, International Stock Series, Mid Cap Stock Series, Small Cap Value
Series, Global Growth Series, Large Cap Growth Series, Growth 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. AN INVESTMENT IN MONEY MARKET
SERIES IS NEITHER INSURED NOR GUARANTEED BY THE U.S. GOVERNMENT.
- The objective of the "U.S. Government Securities Series" is to maximize
total return (from income and market value change), while providing
shareholders with a high level of current income consistent with prudent
investment risk through investment primarily in debt securities of varying
maturities which have been issued, guaranteed, insured or collateralized by
the United States Government or its agencies or instrumentalities.
- The objective of the "Diversified Income Series" is to maximize total
return (from income and market value change), by investing primarily in a
diversified portfolio of government securities and investment grade
corporate bonds.
- The objectives 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 (from
income and market value change), by investing primarily in high-yield,
high-risk fixed-income securities, which may not be suitable for all
investors.
- The objective of the "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 "Asset Allocation Series" is maximum total return on
invested capital, to be derived primarily from capital appreciation,
dividends, and interest.
- The primary objective of the "Value Series" is short and long-term capital
appreciation. Current income is only a secondary objective. The Series
invests primarily in equity securities and selects stocks based on the
concept of fundamental value.
- The objectives of the "Growth & Income Series" are capital appreciation and
current income, which it seeks by investing primarily in equity securities
that provide an income component and the potential for growth.
- The objective of the "S & P 500 Index Series" is to replicate the total
return of the Standard & Poor's 500 Composite Stock Price Index primarily
through investments in equity securities.
- The primary objective of the "Blue Chip Stock Series" is long-term growth
of capital. Current income is a secondary objective, and many of the stocks
in the Series' portfolio are expected to pay dividends.
- 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 "Mid Cap Stock Series" is total investment returns
(including capital appreciation and income) that consistently outperform
the Standard & Poor's 400 MidCap Index. The Series attempts to maintain a
diversified holding in common stocks of medium capitalization companies
with a market value between $200 million and $5 billion.
- The objective of the "Small Cap Value Series" is capital appreciation. The
Series invests primarily in common stocks of small companies that are out
of favor with markets or that have not yet been discovered by the broader
investment community and are therefore believed to be undervalued.
- 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 objective of the "Large Cap Growth Series" is long-term growth of
capital. The Series invests primarily in the equity securities of a limited
number of large, carefully selected, high quality United States companies
whose securities are believed likely to achieve superior earnings growth.
- The primary objective of the "Growth Stock Series" is short and long-term
capital appreciation. The Series will seek to meet this objective by
investing primarily in common stocks and securities convertible into common
stocks.
- 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.
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.
93
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (Unaudited) (continued)
- --------------------------------------------------------------------------------
The inception of Mid Cap Stock Series, Small Cap Value Series and Large Cap
Growth Series was March 25, 1998, and the commencement of operations was May
1, 1998.
The significant accounting policies followed by the Portfolios are summarized
as follows:
SECURITY VALUATION: Investments in securities traded on a national securities
exchange or on the NASDAQ National Market System are valued at the last
reported sales price. 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. For
fixed income securities, 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 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, 1999,
U.S. Government Securities Series and Asset Allocation Series entered into
outstanding when-issued or forward commitments of $1,437,891 and $5,751,562
respectively.
Consistent with its ability to purchase securities on a when-issued basis,
the U.S. Government Securities Series, Diversified Income Series and Asset
Allocation Series have entered into transactions to defer settlement of its
purchase commitments. As an inducement to defer settlement, the portfolio
repurchases a similar security for settlement at a later date at a lower
purchase price relative to the current market. This transaction is referred
to as a Dollar Roll.
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 official 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.
Certain portfolios may enter into forward foreign currency exchange contracts
for operational purposes and to attempt to minimize the risk from adverse
exchange rate fluctuations. The net U.S. dollar value of foreign currency
underlying all contractual commitments held by the portfolio and the
resulting unrealized appreciation or depreciation are determined using
foreign currency exchange rates from an independent pricing service. The
portfolio 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, 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. Each Portfolio amortizes bond premium, market
discount and original issue discount. For the six-month period ended June 30,
1999, the cost of purchases and proceeds from sales of securities for Money
Market Series were $256,948,646 and $246,046,672, 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............ $ 55,579,392 $ 56,244,186
Diversified Income Series.................... 47,372,124 48,766,754
Global Bond Series........................... 26,107,460 21,651,886
High Yield Series............................ 19,385,997 19,107,803
Global Asset Allocation Series............... 19,307,194 16,812,816
Asset Allocation Series...................... 545,631,582 507,710,121
Value Series................................. 102,366,134 103,585,493
Growth & Income Series....................... 121,293,165 120,649,446
S & P 500 Index Series....................... 68,381,585 3,925,863
Blue Chip Stock Series....................... 81,569,783 41,140,317
International Stock Series................... 17,072,288 12,311,560
Mid Cap Stock Series......................... 9,523,432 4,947,214
Small Cap Value Series....................... 18,696,284 10,358,398
Global Growth Series......................... 85,391,683 123,770,231
Large Cap Growth Series...................... 34,326,813 9,164,413
Growth Stock Series.......................... 630,194,481 649,941,980
Aggressive Growth Series..................... 216,001,349 209,720,060
</TABLE>
LENDING OF PORTFOLIO SECURITIES: At June 30, 1999, securities were on loan to
brokers from the portfolios. For collateral, the portfolios custodian
received cash which is maintained in a separate account and invested by the
custodian in short-term investment vehicles. The risk to the portfolios 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
94
<PAGE>
- --------------------------------------------------------------------------------
than amounts required to be returned to the borrowers. Value of securities on
loan and fee income from securities lending was as follows for the six-month
period ended June 30, 1999:
<TABLE>
<CAPTION>
Securities
On Loan Collateral Fee Income
<S> <C> <C> <C>
- ------------------------------------------------------------------------------------------------
Value Series................................. $ 19,604,072 $ 19,651,800 $ 4,928
Growth & Income Series....................... 69,717,885 71,380,537 57,523
S&P 500 Index Series......................... 66,298,006 67,422,263 15,269
Blue Chip Stock Series....................... 54,903,055 56,645,699 13,629
Global Growth Series......................... 100,007,304 101,874,340 25,628
Aggressive Growth Series..................... 30,861,957 30,125,488 79,696
</TABLE>
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.
Net investment income and net realized gains may differ for financial
statement and 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. Also,
due to the timing of dividend distributions, the fiscal year in which amounts
are distributed may differ from the year that the income or realized gains
(losses) were recorded by the portfolios. The effect on dividend
distributions of certain current year permanent book-to-tax differences is
reflected as excess distributions of net realized gains in the statements of
changes in net assets and the financial highlights.
On the statements of Assets and Liabilities, due to permanent book-to-tax
differences, accumulated net realized gain (loss) and undistributed net
investment income have been increased (decreased) by the following:
<TABLE>
<CAPTION>
Accumulated Undistributed
Net Net
Realized Investment
Gain/(Loss) Income
<S> <C> <C>
- -------------------------------------------------------------------------
Global Bond Series........................... $123,259 $(123,259)
Global Asset Allocation Series............... 183,688 (183,688)
Blue Chip Stock Series....................... (1) 1
International Stock Series................... 24,383 (24,383)
Global Growth Series......................... 7,831 (7,831)
</TABLE>
For federal income tax purposes the portfolios had the following capital loss
carryovers at, December 31, 1998, which, if not offset by subsequent capital
gains, will expire in 1999 through 2006. 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.......................... $ 65,473
U.S. Government Securities Series............ 17,090,438
Diversified Income Series.................... 8,540,124
High Yield Series............................ 1,580,586
International Stock Series................... 769,390
Mid Cap Stock Series......................... 340,752
Large Cap Growth Series...................... 327,690
</TABLE>
ILLIQUID SECURITIES: At June 30, 1999, 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 Stock
Series currently limit investments in illiquid securities to 5% of total net
assets; Global Growth Series to 10%; Global Bond Series, High Yield Series,
Global Asset Allocation Series, Value Series, Growth and Income Series, S&P
500 Index Series, Blue Chip Stock Series, International Stock Series, Mid Cap
Stock Series, Small Cap Value Series, Large Cap Growth Series and Aggressive
Growth Series to 15%, of total net assets, at market value, at date of
purchase. The aggregate values of such securities at June 30, 1999, were as
follows:
<TABLE>
<CAPTION>
Market Value Percentage
of of
Illiquid Total Net
Securities Assets
<S> <C> <C>
- ---------------------------------------------------------------------------
Diversified Income Series.................... $ 3,168,820 2.90%
Global Bond Series........................... 605,313 2.40%
High Yield Series............................ 8,118,392 11.38%
Global Asset Allocation Series............... 359,405 0.52%
Asset Allocation Series...................... 10,919,604 1.75%
Growth & Income Series....................... 10,361,775 3.18%
Blue Chip Stock Series....................... 2,635,330 1.08%
International Stock Series................... 498,223 0.44%
Global Growth Series......................... 9,694,296 2.77%
</TABLE>
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.
FUTURES TRANSACTIONS: Certain Portfolios may invest in financial futures
contracts in order to gain exposure to or protect against changes in the
market. The S&P 500 Index Series and Mid Cap Stock Series are exposed to
market risk as a result of changes in the value of the underlying financial
instruments (see the Notes to the Schedule of Investments). Investment in
financial futures require the funds to "mark to market" 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 funds recognize 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
95
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (Unaudited) (continued)
- --------------------------------------------------------------------------------
contract is traded and is subject to change. Contracts open as of June 30,
1999, and their related unrealized market appreciation are set forth in the
Notes to the Schedule of Investments.
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 .30%
For assets over $500 million .25%
U.S. Government Securities Series For the first $50 million .50%
For assets over $50 million .45%
Diversified Income Series For the first $50 million .50%
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 .50%
For assets over $250 million .45%
Global Asset Allocation Series For the first $100 million .90%
For assets over $100 million .85%
Asset Allocation Series For the first $250 million .50%
For assets over $250 million .45%
Value Series For the first $100 million .70%
For assets over $100 million .60%
Growth & Income Series For the first $100 million .70%
For assets over $100 million .60%
S&P 500 Index Series For all assets .40%
Blue Chip Stock Series For the first $100 million .90%
For assets over $100 million .85%
International Stock Series For the first $100 million .85%
For assets over $100 million .80%
Mid Cap Stock Series For the first $100 million .90%
For the next $150 million .85%
For assets over $250 million .80%
Small Cap Value Series For the first $50 million .90%
For assets over $50 million .85%
Global Growth Series For the first $500 million .70%
For assets over $500 million .60%
Large Cap Growth Series For the first $100 million .90%
For the next $100 million .85%
For assets over $200 million .80%
Growth Stock Series For the first $100 million .70%
For assets over $100 million .60%
Aggressive Growth Series For the first $100 million .70%
For assets over $100 million .60%
</TABLE>
The Global Bond Series, Global Asset Allocation Series, S&P 500 Index Series,
Blue Chip Series, International Stock Series, Mid Cap Stock Series, Small Cap
Value Series and Large Cap Growth Series have retained sub-advisers under an
investment sub-advisory agreement to provide investment advice and, in
general, to conduct the management investment program of each portfolio,
subject to the general control of Advisers and the Board of Directors of the
Fortis Series Fund, Inc. Pursuant to the sub-advisory agreements, each
sub-adviser will regularly provide its respective portfolio with investment
research, advice and supervision and furnish continuously an investment
program for each portfolio consistent with its investment objectives and
policies, including the purchase, retention and disposition of securities.
From its advisory fee, Advisers pays the following fees to each of the
sub-advisers:
<TABLE>
<CAPTION>
Annual
Average Net Advisory
Series Sub-Adviser Assets Fee
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------
Global Bond Series Mercury Asset Management For the first .35%
International Ltd. $100 million
For assets over .225%
$100
million
Global Asset Allocation Series Morgan Stanley Asset For the first .50%
Management Limited $100 million
For assets over .40%
$100 million
S & P 500 Index Series The Dreyfus For all levels .17%
Corporation of assets
Blue Chip Stock Series T. Rowe Price For the first .50%
Associate, Inc. $100 million
For assets over .45%
$100 million
International Stock Series Lazard-Freres Asset For the first $100 .45%
Management million
For assets over .375%
$100 million
Mid Cap Stock Series The Dreyfus Corporation For the first .50%
$100 million
For the next .45%
$150 million
For assets over .40%
$250 million
Small Cap Value Series Berger Associates For the first .50%
$50 million
For assets over .45%
$50 million
Large Cap Value Series Alliance Capital For the first .50%
Management L.P. $100 million
For the next .45%
$100 million
For assets over .40%
$200 million
</TABLE>
For the six-month period ended June 30, 1999, legal fees and expenses were
paid as follows to a law firm of which the secretary of the fund is a
partner.
96
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Series Amount
<S> <C>
- --------------------------------------------------------
Money Market Series.......................... $ 797
U.S. Government Securities Series............ 1,904
Diversified Income Series.................... 1,498
Global Bond Series........................... 298
High Yield Series............................ 850
Global Asset Allocation Series............... 744
Asset Allocation Series...................... 6,751
Value Series................................. 1,903
Growth & Income Series....................... 5,996
S & P 500 Index Series....................... 6,110
Blue Chip Stock Series....................... 5,026
International Stock Series................... 1,225
Mid Cap Stock Series......................... 610
Small Cap Value Series....................... 1,520
<CAPTION>
Series Amount
<S> <C>
- --------------------------------------------------------
Global Growth Series......................... $4,711
Large Cap Growth Series...................... 1,509
Growth Stock Series.......................... 9,517
Aggressive Growth Series..................... 2,900
</TABLE>
3. FORWARD FOREIGN CURRENCY CONTRACTS: At June 30, 1999, the Global Bond Series,
Global Asset Allocation Series and International Stock Series entered into
forward foreign currency exchange contracts that obligated the Series to
deliver/receive currencies at a specified future date. The unrealized
appreciation (depreciation) of $19,014, $140,228 and ($802) 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 June Currency To June Appreciation/
Settle Date Be Delivered 30,1999 Be Received 30,1999 (Depreciation)
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
Aug. 11, 1999 2,300,000 $1,522,320 1,520,806 $1,520,806 $ (1,514)
Australian Dollar U.S. Dollar
Aug. 11, 1999 5,400,000 753,017 756,833 756,833 3,816
Danish Krone U.S. Dollar
Aug. 11, 1999 1,050,000 1,086,086 1,094,268 1,094,268 8,182
European Monetary Unit U.S. Dollar
Aug. 11, 1999 44,855,640 373,068 373,283 373,283 215
Japanese Yen U.S. Dollar
Aug. 11, 1999 373,283 373,283 360,000 372,372 (911)
U.S. Dollar European Monetary Unit
Aug. 11, 1999 3,517,213 3,517,213 424,000,000 3,526,439 9,226
U.S. Dollar Japanese Yen
----------- ----------- ---------------
$7,624,987 $7,644,001 $ 19,014
----------- ----------- ---------------
</TABLE>
<TABLE>
<CAPTION>
GLOBAL ASSET ALLOCATION SERIES
- -------------------------------------------------------------------------------------------------------------
U.S. Dollar U.S. Dollar
Value As Of Value As Of Unrealized
Currency To June Currency To June 30, Appreciation/
Settle Date Be Delivered 30,1999 Be Received 1999 (Depreciation)
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
July. 1, 1999 20,167 $ 20,167 12,779 $ 20,144 $ (23)
U.S. Dollar British Pound Sterling
July 13, 1999 410,000 277,101 278,102 278,102 1,001
Canadian Dollar U.S. Dollar
July 14, 1999 100,000 157,630 161,380 161,380 3,750
British Pound Sterling U.S. Dollar
Aug. 17, 1999 550,000 364,057 367,400 367,400 3,343
Australian Dollar U.S. Dollar
Aug. 17, 1999 15,000,000 124,869 125,000 125,000 131
Japanese Yen U.S. Dollar
Sept. 14, 1999 919,155 919,155 870,000 902,297 (16,858)
U.S. Dollar European Monetary Unit
Oct. 12, 1999 2,800,000 2,910,396 3,059,280 3,059,280 148,884
European Monetary Unit U.S. Dollar
----------- ----------- ---------------
$4,773,375 $4,913,603 $140,228
----------- ----------- ---------------
</TABLE>
97
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (Unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL STOCK SERIES
- -------------------------------------------------------------------------------------------------------------
U.S. Dollar U.S. Dollar
Value As Of Value As Of Unrealized
Currency To June Currency To June 30, Appreciation/
Settle Date Be Delivered 30,1999 Be Received 1999 (Depreciation)
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
July 1, 1999 246,932 $ 246,932 29,802,278 $ 246,218 $ (714)
U.S. Dollar Japanese Yen
July 1, 1999 9,439,295 77,985 78,211 78,211 $ 226
Japanese Yen U.S. Dollar
July 2, 1999 20,027,282 165,460 165,146 165,146 $ (314)
Japanese Yen U.S. Dollar
----------- ----------- ------
$ 490,377 $ 489,575 $(802)
----------- ----------- ------
</TABLE>
4. NET ASSETS INCLUDE UNDISTRIBUTED (EXCESS OF DISTRIBUTIONS OVER) NET
INVESTMENT INCOME OF:
<TABLE>
<CAPTION>
1999 1998
<S> <C> <C>
- ------------------------------------------------------------------------------
Money Market Series.......................... $ 5,251,922 $ 3,352,487
U.S. Government Securities Series............ 12,162,393 7,968,815
Diversified Income Series.................... 10,947,051 7,229,293
Global Bond Series........................... 206,587 (146,800)
High Yield Series............................ 9,554,327 6,362,602
Global Asset Allocation Series............... 709,783 (3,440)
Asset Allocation Series...................... 20,956,657 13,723,599
Value Series................................. 488,999 9,431
Growth & Income Series....................... 9,508,498 7,013,204
<CAPTION>
1999 1998
<S> <C> <C>
- ------------------------------------------------------------------------------
S & P 500 Index Series....................... $ 1,504,617 $ 20,905
Blue Chip Stock Series....................... 217,840 9,441
International Stock Series................... 1,451,014 96,265
Mid Cap Stock Series......................... 3,715 0
Small Cap Value Series....................... 168,282 1,290
Global Growth Series......................... 950,975 416,661
Large Cap Growth Series...................... 2,921 1,268
Growth Stock Series.......................... 1,022,960 1,520,916
Aggressive Growth Series..................... (220,466) 74,969
</TABLE>
5. SHARES OF CAPITAL STOCK SOLD AND REPURCHASED:
<TABLE>
<CAPTION>
SHARES ISSUED
AS A RESULT OF
SHARES SOLD REINVESTED DIVIDENDS SHARES REPURCHASED
------------------------- ------------------------- ---------------------------
1999 1998 1999 1998 1999 1998
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------------
Money Market Series.......................... 4,088,183 6,203,394 -- 304,288 (3,356,379) (4,707,744)
U.S. Government Securities Series............ 797,603 3,084,204 -- 829,215 (934,488) (3,244,692)
Diversified Income Series.................... 428,881 1,179,783 -- 625,983 (738,407) (917,054)
Global Bond Series........................... 402,791 582,919 -- 93,157 (150,966) (486,376)
High Yield Series............................ 613,934 1,889,093 -- 601,517 (553,667) (824,528)
Global Asset Allocation Series............... 348,295 860,431 -- 339,980 (275,338) (326,285)
Asset Allocation Series...................... 1,106,253 2,347,101 -- 57,611 (1,148,514) (1,622,808)
Value Series................................. 330,183 2,434,382 -- 140,390 (368,947) (583,157)
Growth & Income Series....................... 328,997 2,447,766 -- 4,707 (844,831) (771,120)
S & P 500 Index Series....................... 4,223,359 7,384,185 -- 202,574 (853,384) (1,501,912)
Blue Chip Stock Series....................... 2,236,326 4,546,998 -- 166,373 (103,209) (202,065)
International Stock Series................... 781,830 1,774,205 -- 491,607 (479,844) (1,073,722)
Mid Cap Stock Series......................... 582,849 1,377,131 -- 2,414 (52,152) (31,004)
Small Cap Value Series....................... 996,669 1,822,903 -- 24,650 (75,973) (69,121)
Global Growth Series......................... 214,540 640,974 -- 19,957 (1,736,298) (2,496,326)
Large Cap Growth Series...................... 2,114,775 1,618,613 -- 413 (48,385) (31,517)
Growth Stock Series.......................... 200,897 576,663 -- 1,100,557 (1,411,472) (2,423,501)
Aggressive Growth Series..................... 451,344 1,147,537 -- 20,203 (559,013) (1,059,209)
<CAPTION>
NET INCREASE (DECREASE) OF
SHARES
---------------------------
1999 1998
<S> <C> <C>
- ---------------------------------------------
Money Market Series.......................... 731,804 1,799,938
U.S. Government Securities Series............ (136,885) 668,727
Diversified Income Series.................... (309,526) 888,712
Global Bond Series........................... 251,825 189,700
High Yield Series............................ 60,267 1,666,082
Global Asset Allocation Series............... 72,957 874,126
Asset Allocation Series...................... (42,261) 781,904
Value Series................................. (38,764) 1,991,615
Growth & Income Series....................... (515,834) 1,681,353
S & P 500 Index Series....................... 3,369,975 6,084,847
Blue Chip Stock Series....................... 2,133,117 4,511,306
International Stock Series................... 301,986 1,192,090
Mid Cap Stock Series......................... 530,697 1,348,541
Small Cap Value Series....................... 920,696 1,778,432
Global Growth Series......................... (1,521,758) (1,835,395)
Large Cap Growth Series...................... 2,066,390 1,587,509
Growth Stock Series.......................... (1,210,575) (746,281)
Aggressive Growth Series..................... (107,669) 108,531
</TABLE>
98
<PAGE>
- --------------------------------------------------------------------------------
6. FINANCIAL HIGHLIGHTS: Selected per share historical data for each of the
Series was as follows:
<TABLE>
<CAPTION>
Year Ended December 31,
--------------------------------------------------------------------
MONEY MARKET SERIES 1999** 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 11.06 $ 11.03 $ 10.94 $ 10.83 $ 10.63 $ 10.23
-------- -------- -------- -------- -------- --------
Operations:
Investment income - net............... .26 .57 .58 .57 .60 .41
Net realized and unrealized gain
(loss) on investments............... -- -- -- -- -- (.01)
-------- -------- -------- -------- -------- --------
Total from operations................... .26 .57 .58 .57 .60 .40
-------- -------- -------- -------- -------- --------
Distributions to shareholders:
From investment income - net.......... -- (.54) (.49) (.46) (.40) --
-------- -------- -------- -------- -------- --------
Net asset value, end of period.......... $ 11.32 $ 11.06 $ 11.03 $ 10.94 $ 10.83 $ 10.63
-------- -------- -------- -------- -------- --------
Total return @.......................... 2.31% 5.32% 5.34% 5.17% 5.71% 3.92%
Net assets end of period (000s
omitted).............................. $ 87,158 $ 77,097 $ 57,009 $ 61,906 $ 41,807 $ 44,833
Ratio of expenses to average daily net
assets................................ .34%* .35% .38% .38% .40% .40%
Ratio of net investment income to
average daily net assets.............. 4.60%* 5.18% 5.19% 5.14% 5.44% 3.96%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 1999.
@ These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions.
<TABLE>
<CAPTION>
Year Ended December 31,
--------------------------------------------------------------------------
U.S. GOVERNMENT SERIES 1999** 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 10.93 $ 10.68 $ 10.57 $ 11.16 $ 9.40 $ 10.94
--------- --------- --------- --------- --------- ---------
Operations:
Investment income - net............... .31 .60 .80 .67 .70 .71
Net realized and unrealized gain
(loss) on investments............... (.55) .34 .12 (.51) 1.06 (1.54)
--------- --------- --------- --------- --------- ---------
Total from operations................... (.24) .94 .92 .16 1.76 (.83)
--------- --------- --------- --------- --------- ---------
Distributions to shareholders:
From investment income - net.......... -- (.69) (.81) (.75) -- (.71)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period.......... $ 10.69 $ 10.93 $ 10.68 $ 10.57 $ 11.16 $ 9.40
--------- --------- --------- --------- --------- ---------
Total return @.......................... (2.15%) 8.87% 9.08% 2.21% 18.78% (6.44%)
Net assets end of period (000s
omitted).............................. $ 147,923 $ 152,672 $ 142,070 $ 161,678 $ 182,687 $ 172,656
Ratio of expenses to average daily net
assets................................ .52%* .51% .54% .53% .53% .53%
Ratio of net investment income to
average daily net assets.............. 5.59%* 5.53% 6.03% 6.17% 6.78% 6.87%
Portfolio turnover rate................. 38% 114% 148% 176% 115% 187%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 1999.
@ These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions.
99
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (Unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6. FINANCIAL HIGHLIGHTS (continued):
Year Ended December 31,
-------------------------------------------------------------------------
DIVERSIFIED INCOME SERIES 1999** 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 11.91 $ 11.98 $ 11.70 $ 12.20 $ 10.40 $ 11.93
--------- --------- --------- --------- --------- --------
Operations:
Investment income - net............... .42 .73 .91 .82 .88 .87
Net realized and unrealized gain
(loss) on investments............... (.63) .01 .26 (.40) .92 (1.53)
--------- --------- --------- --------- --------- --------
Total from operations................... (.21) .74 1.17 .42 1.80 (.66)
--------- --------- --------- --------- --------- --------
Distributions to shareholders:
From investment income - net.......... -- (.81) (.89) (.91) -- (.87)
Excess distributions of net realized
gains............................... -- -- -- (.01) -- --
--------- --------- --------- --------- --------- --------
Total distributions to shareholders..... -- (.81) (.89) (.92) -- (.87)
--------- --------- --------- --------- --------- --------
Net asset value, end of period.......... $ 11.70 $ 11.91 $ 11.98 $ 11.70 $ 12.20 $ 10.40
--------- --------- --------- --------- --------- --------
Total return @.......................... (1.83%) 6.31% 10.44% 4.15% 17.26% (5.22%)
Net assets end of period (000s
omitted).............................. $ 109,451 $ 115,182 $ 105,200 $ 105,831 $ 109,120 $ 98,314
Ratio of expenses to average daily net
assets................................ .53%* .52% .55% .55% .55% .55%
Ratio of net investment income to
average daily net assets.............. 6.58%* 6.56% 7.11% 6.86% 7.78% 7.59%
Portfolio turnover rate................. 43% 96% 166% 171% 139% 142%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 1999.
@ These are the Fund's total return during the period, including
reinvestment of all dividend and capital gains distributions.
<TABLE>
<CAPTION>
Year Ended December 31,
--------------------------------------------------------
GLOBAL BOND SERIES 1999** 1998 1997 1996 1995+
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 11.56 $ 10.65 $ 11.11 $ 11.30 $ 10.00
-------- -------- -------- -------- --------
Operations:
Investment income - net............... .16 .30 .46 .57 .54
Net realized and unrealized gain
(loss) on investments and foreign
currency transactions............... (1.16) 1.13 (.45) (.13) 1.52
-------- -------- -------- -------- --------
Total from operations................... (1.00) 1.43 .01 .44 2.06
-------- -------- -------- -------- --------
Distributions to shareholders:
From investment income - net.......... -- (.19) (.37) (.43) (.54)
From net realized gains on investments
and foreign currency transactions... -- (.33) (.10) (.20) (.22)
-------- -------- -------- -------- --------
Total distributions to shareholders..... -- (.52) (.47) (.63) (.76)
-------- -------- -------- -------- --------
Net asset value, end of period.......... $ 10.56 $ 11.56 $ 10.65 $ 11.11 $ 11.30
-------- -------- -------- -------- --------
Total return @.......................... (8.69%) 13.49% .14% 3.32% 19.14%
Net assets end of period (000s
omitted).............................. $ 25,173 $ 24,659 $ 20,692 $ 20,228 $ 13,187
Ratio of expenses to average daily net
assets................................ .89%* .88% 1.10% 1.02% 1.28%*
Ratio of net investment income to
average daily net assets.............. 3.80%* 4.19% 4.41% 5.07% 5.01%*
Portfolio turnover rate................. 100% 190% 168% 129% 184%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 1999.
+ For the period January 3, 1995 (commencement of operations) to
December 31, 1995. The portfolio's inception was December 14, 1994,
when it was initially capitalized. However, the portfolio's shares did
not become effectively registered under the Securities Act of 1933
until January 3, 1995. Information is not presented for the period
from December 14, 1994, through January 3, 1995, as the portfolio's
shares were not registered during that period.
@ These are the portfolios total return during the period, including
reinvestment of all dividend and capital gains distributions.
100
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6. FINANCIAL HIGHLIGHTS (continued):
Year Ended December 31,
--------------------------------------------------------------------
HIGH YIELD SERIES 1999** 1998 1997 1996 1995 1994+
<S> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 9.91 $ 10.77 $ 9.83 $ 9.74 $ 9.47 $ 10.00
-------- -------- -------- -------- -------- --------
Operations:
Investment income - net............... .43 .75 .96 1.04 1.15 .71
Net realized and unrealized gain
(loss) on investments............... (.47) (.71) -- .13 .30 (.53)
-------- -------- -------- -------- -------- --------
Total from operations................... (.04) .04 .96 1.17 1.45 .18
-------- -------- -------- -------- -------- --------
Distributions to shareholders:
From investment income - net.......... -- (.83) (.02) (1.03) (1.14) (.71)
From net realized gains on
investments......................... -- (.07) -- -- -- --
Excess distributions of net realized
gains............................... -- -- -- (.05) (.04) --
-------- -------- -------- -------- -------- --------
Total distributions to shareholders..... -- (.90) (.02) (1.08) (1.18) (.71)
-------- -------- -------- -------- -------- --------
Net asset value, end of period.......... $ 9.87 $ 9.91 $ 10.77 $ 9.83 $ 9.74 $ 9.47
-------- -------- -------- -------- -------- --------
Total return @.......................... (.32%) .62% 9.76% 10.52% 12.73% (.75%)
Net assets end of period (000s
omitted).............................. $ 71,353 $ 70,983 $ 59,228 $ 42,578 $ 28,129 $ 13,706
Ratio of expenses to average daily net
assets................................ .56%* .56% .62% .63% .63% .75%*
Ratio of net investment income to
average daily net assets.............. 8.79%* 9.39% 10.31% 10.22% 11.30% 10.44%*
Portfolio turnover rate................. 28% 120% 353% 235% 130% 20%
</TABLE>
* Annualized.
** Six-month period ended June 30, 1999.
+ For the Period May 2, 1994 (commencement of operations) to December
31, 1994. The portfolio's inception was April 26, 1994, when it was
initially capitalized. However, the portfolio's shares did not become
effectively registered under the Securities Act of 1933 until May 2,
1994. Information is not presented for the period from April 26, 1994,
through May 2, 1994, as the portfolio's shares were not registered
during that period.
@ These are the portfolios total return during the period, including
reinvestment of all dividend and capital gains distributions.
<TABLE>
<CAPTION>
Year Ended December 31,
--------------------------------------------------------
GLOBAL ASSET ALLOCATION SERIES 1999** 1998 1997 1996 1995+
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 14.32 $ 13.29 $ 12.34 $ 11.42 $ 10.00
-------- -------- -------- -------- --------
Operations:
Investment income - net............... .15 .28 .28 .36 .35
Net realized and unrealized gain
(loss) on investments and foreign
currency transactions............... (.31) 1.81 1.39 1.19 1.55
-------- -------- -------- -------- --------
Total from operations................... (.16) 2.09 1.67 1.55 1.90
-------- -------- -------- -------- --------
Distributions to shareholders:
From investment income - net.......... -- (.31) (.26) (.38) (.34)
From net realized gains on investments
and foreign currency transactions... -- (.75) (.46) (.25) (.14)
-------- -------- -------- -------- --------
Total distributions to shareholders..... -- (1.06) (.72) (.63) (.48)
-------- -------- -------- -------- --------
Net asset value, end of period.......... $ 14.16 $ 14.32 $ 13.29 $ 12.34 $ 11.42
-------- -------- -------- -------- --------
Total return @.......................... (1.11%) 17.27% 13.51% 12.72% 17.47%
Net assets end of period (000s
omitted).............................. $ 69,350 $ 69,086 $ 52,482 $ 37,307 $ 20,080
Ratio of expenses to average daily net
assets................................ 1.00%* 1.01% 1.16% 1.20% 1.28%*
Ratio of net investment income to
average daily net assets.............. 2.64%* 2.13% 2.42% 3.01% 3.26%*
Portfolio turnover rate................. 26% 69% 51% 46% 44%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 1999.
+ 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 Fund's total return during the period, including
reinvestment of all dividend and capital gains distributions.
101
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (Unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6. FINANCIAL HIGHLIGHTS (continued):
Year Ended December 31,
--------------------------------------------------------------------------
ASSET ALLOCATION SERIES 1999** 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 21.09 $ 17.62 $ 16.99 $ 15.90 $ 13.56 $ 14.14
--------- --------- --------- --------- --------- ---------
Operations:
Investment income - net............... .26 .49 .59 .61 .65 .56
Net realized and unrealized gain
(loss) on investments............... .90 3.02 2.82 1.38 2.35 (.58)
--------- --------- --------- --------- --------- ---------
Total from operations................... 1.16 3.51 3.41 1.99 3.00 (.02)
--------- --------- --------- --------- --------- ---------
Distributions to shareholders:
From investment income - net.......... -- (.01) (.59) (.61) (.64) (.56)
From net realized gains on
investments......................... -- (.03) (2.19) (.28) (.02) --
Excess distributions of net realized
gains............................... -- -- -- (.01) -- --
--------- --------- --------- --------- --------- ---------
Total distributions to shareholders..... -- (.04) (2.78) (.90) (.66) (.56)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period.......... $ 22.25 $ 21.09 $ 17.62 $ 16.99 $ 15.90 $ 13.56
--------- --------- --------- --------- --------- ---------
Total return @.......................... 5.49% 19.97% 20.24% 12.50% 21.97% (.31%)
Net assets end of period (000s
omitted).............................. $ 625,510 $ 593,878 $ 482,280 $ 397,712 $ 341,511 $ 260,593
Ratio of expenses to average daily net
assets................................ .51%* .51% .53% .54% .55% .56%
Ratio of net investment income to
average daily net assets.............. 2.40%* 2.64% 3.16% 3.66% 4.25% 4.05%
Portfolio turnover rate................. 87% 114% 113% 115% 98% 73%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 1999.
@ 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,
--------------------------------------------
VALUE SERIES 1999** 1998 1997 1996+
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 14.38 $ 13.42 $ 11.38 $ 10.27
-------- -------- -------- --------
Operations:
Investment income - net............... .08 .16 .12 .14
Net realized and unrealized gain on
investments......................... 1.43 1.13 2.75 1.10
-------- -------- -------- --------
Total from operations................... 1.51 1.29 2.87 1.24
-------- -------- -------- --------
Distributions to shareholders:
From investment income - net.......... -- (.16) (.13) (.13)
From net realized gains on
investments......................... -- (.17) (.70) --
-------- -------- -------- --------
Total distributions to shareholders..... -- (.33) (.83) (.13)
-------- -------- -------- --------
Net asset value, end of period.......... $ 15.89 $ 14.38 $ 13.42 $ 11.38
-------- -------- -------- --------
Total return @.......................... 10.52% 9.64% 25.24% 11.49%
Net assets end of period (000s
omitted).............................. $ 96,201 $ 87,604 $ 55,058 $ 13,951
Ratio of expenses to average daily net
assets................................ .76%* .76% .83% .87%*
Ratio of net investment income to
average daily net assets.............. 1.07%* 1.26% 1.41% 1.72%*
Portfolio turnover rate................. 117% 332% 121% 36%
</TABLE>
* Annualized
** For the six-month period ended June 30, 1999.
+ 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 that period.
@ These are the portfolio's total return during the period, including
reinvestment of all dividend and capital gains distributions.
102
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6. FINANCIAL HIGHLIGHTS (continued):
Year Ended December 31,
------------------------------------------------------------------------
GROWTH & INCOME SERIES 1999** 1998 1997 1996 1995 1994+
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 21.23 $ 18.76 $ 15.16 $ 12.83 $ 10.07 $ 10.00
--------- --------- --------- --------- -------- --------
Operations:
Investment income - net............... .19 .48 .40 .34 .33 .21
Net realized and unrealized gain on
investments......................... 1.46 2.00 3.80 2.54 2.76 .07
--------- --------- --------- --------- -------- --------
Total from operations................... 1.65 2.48 4.20 2.88 3.09 .28
--------- --------- --------- --------- -------- --------
Distributions to shareholders:
From investment income - net.......... -- -- (.39) (.34) (.33) (.21)
From net realized gains on
investments......................... -- (.01) (.21) (.21) -- --
--------- --------- --------- --------- -------- --------
Total distributions to shareholders..... -- (.01) (.60) (.55) (.33) (.21)
--------- --------- --------- --------- -------- --------
Net asset value, end of period.......... $ 22.88 $ 21.23 $ 18.76 $ 15.16 $ 12.83 $ 10.07
--------- --------- --------- --------- -------- --------
Total return @.......................... 7.81% 13.21% 27.69% 21.51% 29.70% 1.74%
Net assets end of period (000s
omitted).............................. $ 325,568 $ 312,939 $ 244,970 $ 134,932 $ 59,533 $ 16,276
Ratio of expenses to average daily net
assets................................ .68%* .67% .70% .76% .80% .86%*
Ratio of net investment income to
average daily net assets.............. 1.59%* 2.45% 2.63% 2.38% 2.86% 3.12%*
Portfolio turnover rate................. 39% 30% 11% 20% 17% 2%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 1999.
+ For the period May 2, 1994 (commencement of operations) to December
31, 1994. The portfolio's inception was April 26, 1994, when it was
initially capitalized. However, the portfolio's shares did not become
effectively registered under the Securities Act of 1933 until May 2,
1994. Information is not presented for the period from April 26, 1994,
through May 2, 1994, as the portfolio's shares were not registered
during that period.
@ These are the portfolios total return during the period, including
reinvestment of all dividend and capital gains distributions.
<TABLE>
<CAPTION>
Year Ended December 31,
-----------------------------------------------
S&P 500 SERIES 1999** 1998 1997 1996+
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 18.83 $ 14.93 $ 11.47 $ 10.09
--------- --------- --------- --------
Operations:
Investment income - net............... .09 .16 .12 .10
Net realized and unrealized gain on
investments......................... 2.18 4.03 3.58 1.37
--------- --------- --------- --------
Total from operations................... 2.27 4.19 3.70 1.47
--------- --------- --------- --------
Distributions to shareholders:
From investment income - net.......... -- (.16) (.12) (.09)
From net realized gains on
investments......................... -- (.13) (.12) --
--------- --------- --------- --------
Total distributions to shareholders..... -- (.29) (.24) (.09)
--------- --------- --------- --------
Net asset value, end of period.......... $ 21.10 $ 18.83 $ 14.93 $ 11.47
--------- --------- --------- --------
Total return @.......................... 12.04% 28.11% 32.32% 14.29%
Net assets end of period (000s
omitted).............................. $ 354,373 $ 252,832 $ 109,572 $ 21,979
Ratio of expenses to average daily net
assets................................ .46%* .46% .51% .79%*
Ratio of net investment income to
average daily net assets.............. .99%* 1.17% 1.41% 1.47%*
Portfolio turnover rate................. 1% 3% 5% 6%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 1999.
+ 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. Supplementary information is not presented for the period from
March 28, 1996, through May 1, 1996, as the portfolio's shares were
not registered during that period.
@ These are the Fund's total return during the period, including
reinvestment of all dividend and capital gains distributions.
103
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (Unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6. FINANCIAL HIGHLIGHTS (continued):
Year Ended December 31,
----------------------------------------------
BLUE CHIP STOCK SERIES 1999** 1998 1997 1996+
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 18.58 $ 14.76 $ 11.67 $ 10.07
--------- --------- -------- --------
Operations:
Investment income - net............... .02 .05 .07 .07
Net realized and unrealized gain on
investments and foreign currency
transactions........................ 1.80 4.09 3.08 1.60
--------- --------- -------- --------
Total from operations................... 1.82 4.14 3.15 1.67
--------- --------- -------- --------
Distributions to shareholders:
From investment income - net.......... -- (.06) (.06) (.07)
From net realized gains on investments
and foreign currency transactions... -- (.26) -- --
--------- --------- -------- --------
Total distributions to shareholders..... -- (.32) (.06) (.07)
--------- --------- -------- --------
Net asset value, end of period.......... $ 20.40 $ 18.58 $ 14.76 $ 11.67
--------- --------- -------- --------
Total return @.......................... 9.80% 28.07% 27.00% 16.24%
Net assets end of period (000s
omitted).............................. $ 244,352 $ 182,921 $ 78,729 $ 17,606
Ratio of expenses to average daily net
assets................................ .92%* .94% 1.02% 1.13%*
Ratio of net investment income to
average daily net assets.............. .20%* .41% .75% .82%*
Portfolio turnover rate................. 20% 34% 24% 17%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 1999.
+ 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. Supplementary information is not presented for the period from
March 28, 1996, through May 1, 1996, as the portfolio's shares were
not registered durning that period.
@ These are the Portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions.
<TABLE>
<CAPTION>
Year Ended December 31,
----------------------------------------------------------
INTERNATIONAL STOCK SERIES 1999** 1998 1997 1996 1995+
<S> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 14.48 $ 13.36 $ 12.44 $ 11.27 $ 10.00
--------- --------- -------- -------- --------
Operations:
Investment income - net............... .18 .15 .13 .20 .14
Net realized and unrealized gain on
investments and foreign currency
transactions........................ .63 2.03 1.35 1.48 1.38
--------- --------- -------- -------- --------
Total from operations................... .81 2.18 1.48 1.68 1.52
--------- --------- -------- -------- --------
Distributions to shareholders:
From investment income - net.......... -- (.26) (.15) (.21) (.09)
From net realized gains on investments
and foreign currency transactions... -- (.80) (.41) (.30) (.16)
--------- --------- -------- -------- --------
Total distributions to shareholders..... -- (1.06) (.56) (.51) (.25)
--------- --------- -------- -------- --------
Net asset value, end of period.......... $ 15.29 $ 14.48 $ 13.36 $ 12.44 $ 11.27
--------- --------- -------- -------- --------
Total return @.......................... 5.54% 16.47% 11.99% 14.02% 14.35%
Net assets end of period (000s
omitted).............................. $ 113,386 $ 103,056 $ 79,142 $ 52,331 $ 21,327
Ratio of expenses to average daily net
assets................................ .94%* .94% 1.08% 1.15% 1.14%*
Ratio of net investment income to
average daily net assets.............. 2.61%* 1.20% 1.10% 1.71% 1.41%*
Portfolio turnover rate................. 12% 44% 30% 27% 39%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 1999.
+ 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 return during the period, including
reinvestment of all dividend and capital gains distributions.
104
<PAGE>
- --------------------------------------------------------------------------------
6. FINANCIAL HIGHLIGHTS (continued):
<TABLE>
<CAPTION>
MID CAP STOCK SERIES 1999** 1998+
<S> <C> <C>
- ---------------------------------------------------------------
Net asset value, beginning of period.... $ 9.64 $ 9.94
-------- --------
Operations:
Investment income - net............... -- .02
Net realized and unrealized gain
(loss) on investments............... .39 (.30)
-------- --------
Total from operations................... .39 (.28)
-------- --------
Distributions to shareholders:
From investment income - net.......... -- (.02)
-------- --------
Net asset value, end of period.......... $ 10.03 $ 9.64
-------- --------
Total return @.......................... 4.11% (2.89%)
Net assets end of period (000s
omitted).............................. $ 18,854 $ 12,995
Ratio of expenses to average daily net
assets................................ 1.23%* 1.25%*(a)
Ratio of net investment income to
average daily net assets.............. .05%* .19%*(a)
Portfolio turnover rate................. 34% 66%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 1999.
+ For the period May 1, 1998 (commencement of operations) to December
31, 1998. The portfolio's inception was March 25, 1998, when it was
initially capitalized. However, the portfolio's shares did not become
effectively registered under the Securities Act of 1933 until May 1,
1998. Information is not presented for the period from from March 25,
1998, through May 1, 1998, as the portfolio's shares were not
registered during that period.
@ These are the portfolios total return during the period, including
reinvestment of all dividend and capital gains distributions.
(a) Advisers has voluntarily undertaken to limit annual expenses for Mid
Cap Growth Series (exclusive of interest, taxes, brokerage commission
and non-recurring extraordinary charges and expenses) to 1.25% of the
average net assets. For the period presented, had the waiver and
reimbursement of expenses not been in effect, the ratios of expenses
and net investment income to average daily net assets would have been
1.40% and .04%, respectively.
<TABLE>
<CAPTION>
SMALL CAP VALUE SERIES 1999** 1998+
<S> <C> <C>
- ---------------------------------------------------------------
Net asset value, beginning of period.... $ 9.28 $ 9.96
-------- --------
Operations:
Investment income - net............... .06 .07
Net realized and unrealized gain
(loss) on investments............... 1.45 (.62)
-------- --------
Total from operations................... 1.51 (.55)
-------- --------
Distributions to shareholders:
From investment income - net.......... -- (.07)
From net realized gains on
investments......................... -- (.06)
-------- --------
Total distributions to shareholders..... -- (.13)
-------- --------
Net asset value, end of period.......... $ 10.79 $ 9.28
-------- --------
Total return @.......................... 16.30% (5.48%)
Net assets end of period (000s
omitted).............................. $ 29,130 $ 16,503
Ratio of expenses to average daily net
assets................................ 1.06%* 1.24%*
Ratio of net investment income to
average daily net assets.............. 1.58%* 1.56%*
Portfolio turnover rate................. 51% 57%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 1999.
+ For the period May 1, 1998 (commencement of operations) to December
31, 1998. The portfolio's inception was March 25, 1998, when it was
initially capitalized. However, the portfolio's shares did not become
effectively registered under the Securities Act of 1933 until May 1,
1998. Information is not presented for the period from March 25, 1998,
through May 1, 1998, 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.
105
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (Unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6. FINANCIAL HIGHLIGHTS (continued):
Year Ended December 31,
--------------------------------------------------------------------------
GLOBAL GROWTH SERIES 1999** 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 22.57 $ 20.29 $ 19.00 $ 15.97 $ 12.31 $ 12.77
--------- --------- --------- --------- --------- ---------
Operations:
Investment income - net............... .04 .03 .02 .03 .09 .10
Net realized and unrealized gain
(loss) on investments and foreign
currency transactions............... 2.29 2.27 1.27 3.03 3.66 (.46)
--------- --------- --------- --------- --------- ---------
Total from operations................... 2.33 2.30 1.29 3.06 3.75 (.36)
--------- --------- --------- --------- --------- ---------
Distributions to shareholders:
From investment income - net.......... -- (.02) -- (.03) (.09) (.10)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period.......... $ 24.90 $ 22.57 $ 20.29 $ 19.00 $ 15.97 $ 12.31
--------- --------- --------- --------- --------- ---------
Total return @.......................... 10.35% 11.36% 6.82% 19.10% 30.49% (2.98%)
Net assets end of period (000s
omitted).............................. $ 349,957 $ 351,476 $ 353,255 $ 319,831 $ 207,913 $ 144,647
Ratio of expenses to average daily net
assets................................ .76%* .75% .79% .79% .80% .81%
Ratio of net investment income to
average daily net assets.............. .32%* .12% .12% .15% .64% .82%
Portfolio turnover rate................. 26% 32% 35% 14% 29% 20%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 1999.
@ These are the Portfolios total return during the period, including
reinvestment of all dividend and capital gains distributions.
<TABLE>
<CAPTION>
LARGE CAP GROWTH SERIES 1999** 1998+
<S> <C> <C>
- ---------------------------------------------------------------
Net asset value, beginning of period.... $ 12.04 $ 10.16
-------- --------
Operations:
Investment income - net............... -- --
Net realized and unrealized gain on
investments......................... 1.74 1.88
-------- --------
Net asset value, end of period.......... $ 13.78 $ 12.04
-------- --------
Total return @.......................... 14.42% 18.61%
Net assets end of period (000s
omitted).............................. $ 50,356 $ 19,121
Ratio of expenses to average daily net
assets................................ .98%* 1.25%*(a)
Ratio of net investment income to
average daily net assets.............. .01%* .03%*(a)
Portfolio turnover rate................. 29% 36%
</TABLE>
* Annualized.
** Six-month period ended June 30, 1999.
@ These are the portfolios total return during the period, including
reinvestment of all dividend and capital gains distributions.
+ For the Period May 1, 1998 (commencement of operations) to December
31, 1998. The portfolio's inception was March 25, 1998, when it was
initially capitalized. However, the portfolio's shares did not become
effectively registered under the Securities Act of 1933 until May 1,
1998. Information is not presented for the period from March 25, 1998,
through May 1, 1998, as the portfolio's shares were not registered
during that period.
(a) Advisers has voluntarily undertaken to limit annual expenses for Large
Cap Growth Series (exclusive of interest, taxes, brokerage commission
and non-recurring extraordinary charges and expenses) to to 1.25% of
the average net assets. For the period presented, had the waiver and
reimbursement of expenses not been in effect, the ratios of expenses
and net investment income to average daily net assets would have been
1.27% and .01%, respectively.
106
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6. FINANCIAL HIGHLIGHTS (continued):
Year Ended December 31,
--------------------------------------------------------------------------
GROWTH STOCK SERIES 1999** 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 41.09 $ 36.64 $ 32.59 $ 28.09 $ 22.11 $ 22.92
--------- --------- --------- --------- --------- ---------
Operations:
Investment income (loss) - net........ (.02) .09 .12 .12 .13 .18
Net realized and unrealized gain
(loss) on investments............... 2.16 6.40 3.93 4.50 5.98 (.81)
--------- --------- --------- --------- --------- ---------
Total from operations................... 2.14 6.49 4.05 4.62 6.11 (.63)
--------- --------- --------- --------- --------- ---------
Distributions to shareholders:
From investment income - net.......... -- (.13) -- (.12) (.13) (.18)
From net realized gains on
investments......................... -- (1.91) -- -- -- --
--------- --------- --------- --------- --------- ---------
Total distributions to shareholders..... -- (2.04) -- (.12) (.13) (.18)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period.......... $ 43.23 $ 41.09 $ 36.64 $ 32.59 $ 28.09 $ 22.11
--------- --------- --------- --------- --------- ---------
Total return @.......................... 5.21% 19.01% 12.42% 16.41% 27.66% (2.82%)
Net assets end of period (000s
omitted).............................. $ 749,733 $ 762,354 $ 707,155 $ 661,217 $ 530,945 $ 377,483
Ratio of expenses to average daily net
assets................................ .66%* .65% .66% .67% .67% .68%
Ratio of net investment income (loss) to
average daily net assets.............. (.14%)* .21% .33% .39% .51% .81%
Portfolio turnover rate................. 91% 106% 19% 30% 20% 19%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 1999.
@ These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions.
<TABLE>
<CAPTION>
Year Ended December 31,
-----------------------------------------------------------------------
AGGRESSIVE GROWTH SERIES 1999** 1998 1997 1996 1995 1994+
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 16.70 $ 13.81 $ 13.62 $ 12.68 $ 9.80 $ 10.03
--------- --------- --------- -------- -------- --------
Operations:
Investment income (loss) - net........ (.03) .01 .03 .03 .07 .08
Net realized and unrealized gain
(loss) on investments............... 3.34 2.91 .16 .94 2.88 (.23)
--------- --------- --------- -------- -------- --------
Total from operations................... 3.31 2.92 .19 .97 2.95 (.15)
--------- --------- --------- -------- -------- --------
Distributions to shareholders:
From investment income - net.......... -- (.03) -- (.03) (.07) (.08)
--------- --------- --------- -------- -------- --------
Net asset value, end of period.......... $ 20.01 $ 16.70 $ 13.81 $ 13.62 $ 12.68 $ 9.80
--------- --------- --------- -------- -------- --------
Total return @.......................... 19.80% 21.17% 1.43% 7.64% 29.89% (1.89%)
Net assets end of period (000s
omitted).............................. $ 177,384 $ 149,860 $ 122,455 $ 96,931 $ 46,943 $ 13,526
Ratio of expenses to average daily net
assets................................ .73%* .72% .76% .78% .81% .88%*
Ratio of net investment income (loss) to
average daily net assets.............. (.39%)* .06% .24% .22% .58% 1.24%*
Portfolio turnover rate................. 139% 135% 25% 22% 21% 5%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 1999.
+ For the period May 2, 1994 (commencement of operations) to December
31, 1994. The portfolio's inception was April 26, 1994, when it was
initially capitalized. However, the portfolio's shares did not become
effectively registered under the Securities Act of 1933 until May 2,
1994. Information is not presented for the period from April 26, 1994,
through May 2, 1994, as the portfolio's shares were not registered
during that period.
@ These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions.
107
<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 PRESIDENT, CRANBROOK EDUCATION
COMMUNITY. 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.
PRESIDENT - FORTIS FINANCIAL GROUP,
FORTIS BENEFITS INSURANCE COMPANY AND
SENIOR VICE PRESIDENT, FORTIS
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
Peggy L. Ettestad
VICE PRESIDENT
Tamara L. Fagely
VICE PRESIDENT AND TREASURER
Howard G. Hudson
VICE PRESIDENT
Dickson W. Lewis
VICE PRESIDENT
Lucinda S. Mezey
VICE PRESIDENT
David A. Peterson
VICE PRESIDENT
Scott R. Plummer
VICE PRESIDENT
Rhonda J. Schwartz
VICE PRESIDENT
Melinda S. Urion
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 U.S. Bank National Association
MINNEAPOLIS, MINNESOTA
GENERAL COUNSEL Dorsey & Whitney LLP
MINNEAPOLIS, MINNESOTA
INDEPENDENT AUDITORS KPMG LLP
MINNEAPOLIS, MINNESOTA
The use of this material is authorized only when preceded or accompanied by a
prospectus.
108
<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 NATIONAL
SECURITIES PORTFOLIO
TAX-FREE MINNESOTA
PORTFOLIO
STRATEGIC INCOME FUND
HIGH YIELD PORTFOLIO
Fortis Stock Funds ASSET ALLOCATION
PORTFOLIO
VALUE FUND
GROWTH & INCOME FUND
CAPITAL FUND
GLOBAL GROWTH PORTFOLIO
GROWTH FUND
INTERNATIONAL EQUITY
PORTFOLIO
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
Empower Variable DIVERSIFIED INCOME
Annuity SUBACCOUNT
GLOBAL BOND SUBACCOUNT
HIGH YIELD SUBACCOUNT
GLOBAL ASSET ALLOCATION
SUBACCOUNT
ASSET ALLOCATION
SUBACCOUNT
VALUE SUBACCOUNT
GROWTH & INCOME
SUBACCOUNT
S&P 500 INDEX SUBACCOUNT
BLUE CHIP STOCK
SUBACCOUNT
INTERNATIONAL STOCK
SUBACCOUNT
MID CAP STOCK SUBACCOUNT
SMALL CAP VALUE
SUBACCOUNT
GLOBAL GROWTH SUBACCOUNT
LARGE CAP GROWTH
SUBACCOUNT
GROWTH 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
GLOBAL ASSET ALLOCATION
SUBACCOUNT
ASSET ALLOCATION
SUBACCOUNT
VALUE SUBACCOUNT
GROWTH & INCOME
SUBACCOUNT
S&P 500 INDEX SUBACCOUNT
BLUE CHIP STOCK
SUBACCOUNT
INTERNATIONAL STOCK
SUBACCOUNT
MID CAP STOCK SUBACCOUNT
SMALL CAP VALUE
SUBACCOUNT
GLOBAL GROWTH SUBACCOUNT
LARGE CAP GROWTH
SUBACCOUNT
GROWTH 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 FORTIS 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.
109
<PAGE>
[LOGO]
FORTIS
SOLID PARTNERS, FLEXIBLE SOLUTIONS-SM-
FORTIS MEANS STEADFAST
Fortis means "steadfast" in Latin. The worldwide Fortis family of companies
lives up to the name, and has each day since the 1800s, with flexible
solutions tailored to our customers' individual needs. We deliver the
stability you require today.. and tomorrow. You can count on it.
Fortis Financial Group offers annuities, life insurance and mutual funds
through its broker/dealer Fortis Investors, Inc. We're part of Fortis, Inc.,
a financial services company that provides specialty insurance and investment
products to individuals, businesses, associations and other financial services
organizations throughout the United States.
Fortis, Inc. is part of the international Fortis group, which operates in the
fields of insurance, banking and investments. Fortis' listed companies are
Fortis (B) of Belgium and Fortis (NL) of the Netherlands.
Fortis: steadfast for YOU!
FORTIS FINANCIAL GROUP
Fund Management offered
through Fortis Advisors, Inc.
since 1949
Securities offered through Fortis
Investors, Inc., member NASD, SIPC
Insurance products offered
through Fortis Benefits
Insurance Company &
Fortis Insurance Company
P.O. Box 64284, St. Paul, MN 55164-0284
Telephone (800) 800-2000
http://www.ffg.us.fortis.com
FORTIS FINANCIAL GROUP Bulk Rate
P.O. Box 64284 U.S. Postage
St. Paul, MN 55164-0284 PAID
Permit No. 3794
Minneapolis, MN
Fortis Series Fund, Inc.
[LOGO] Printed on recycled paper with
40 percent preconsumer waste and 10 percent
post consumer waste. Please recycle.
The Fortis brandmark and Fortis-registered trademark- are
servicemarks of Fortis (B) and Fortis (NL).
59475 -C-Fortis 7/99
