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[LOGO]
SOLID PARTNERS, FLEXIBLE SOLUTIONS-SM-
Bringing you a world of opportunity...
Fortis Series Fund, Inc.
ANNUAL REPORT
DECEMBER 31, 1999
FORTIS FINANCIAL GROUP
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FORTIS SERIES FUND, INC.
ANNUAL REPORT
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HIGHLIGHTS
<TABLE>
<CAPTION>
U.S. GLOBAL
MONEY GOVERNMENT DIVERSIFIED GLOBAL HIGH ASSET
MARKET SECURITIES INCOME BOND YIELD ALLOCATION
SERIES SERIES SERIES SERIES SERIES SERIES
-------------- -------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
FOR THE YEAR ENDED
DECEMBER 31, 1999:
NET ASSET VALUE PER SHARE:
Beginning of year............... $11.06 $10.93 $11.91 $11.56 $9.91 $14.32
End of year..................... $11.20 $10.13 $10.91 $10.26 $9.09 $13.17
ACCUMULATION UNIT
PERFORMANCE: (UNAUDITED)
Fortis Opportunity
Annuity/Masters
Variable Annuity.............. +3.55% -3.25% -3.00% -8.77% -0.19% -2.20%
Harmony Investment Life......... +4.17% -2.67% -2.41% -8.22% +0.41% -1.61%
Wall Street Series 220/500...... +3.73% -3.08% -2.82% -8.61% -0.01% -2.03%
Wall Street Series Survivor..... +3.55% -3.25% -3.00% -8.77% -0.19% -2.20%
Empower Variable Annuity........ +3.65% -3.15% -2.90% -8.68% -0.09% -2.10%
Wall Street Series*............. +3.33% -1.20% -1.83% -2.24% -1.31% -0.63%
Income Preferred Variable
Annuity**....................... +0.87% -0.57% +0.20% -2.34% +2.12% +0.82%
<CAPTION>
ASSET GROWTH &
ALLOCATION VALUE INCOME
SERIES SERIES SERIES
-------------- -------------- --------------
<S> <C> <C> <C>
FOR THE YEAR ENDED
DECEMBER 31, 1999:
NET ASSET VALUE PER SHARE:
Beginning of year............. $21.09 $14.38 $21.23
End of year................... $22.78 $15.65 $21.94
ACCUMULATION UNIT
PERFORMANCE: (UNAUDITED)
Fortis Opportunity
Annuity/Masters
Variable Annuity............ +17.96% +7.50% +9.23%
Harmony Investment Life....... +18.67% +8.14% +9.89%
Wall Street Series 220/500.... +18.17% +7.69% +9.42%
Wall Street Series Survivor... +17.95% +7.50% +9.23%
Empower Variable Annuity...... +18.07% +7.60% +9.34%
Wall Street Series*........... +13.34% -1.84% +2.60%
Income Preferred Variable
Annuity**..................... +17.84% +10.36% +12.92%
</TABLE>
<TABLE>
<CAPTION>
S&P BLUE CHIP INTERNATIONAL MID CAP SMALL CAP GLOBAL
500 INDEX STOCK STOCK STOCK VALUE GROWTH
SERIES SERIES SERIES SERIES SERIES SERIES
-------------- -------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
FOR THE YEAR ENDED
DECEMBER 31, 1999:
NET ASSET VALUE PER SHARE:
Beginning of year............... $18.83 $18.58 $14.48 $ 9.64 $ 9.28 $22.57
End of year..................... $22.66 $21.93 $17.94 $10.68 $10.20 $34.72
ACCUMULATION UNIT
PERFORMANCE: (UNAUDITED)
Fortis Opportunity
Annuity/Masters
Variable Annuity.............. +18.72% +18.27% +22.33% +9.48% +13.79% +55.57%
Harmony Investment Life......... +19.44% +18.99% +23.07% +10.14% +14.48% +56.51%
Wall Street Series 220/500...... +18.94% +18.49% +22.55% +9.67% +13.99% +55.85%
Wall Street Series Survivor..... +18.72% +18.27% +22.33% +9.48% +13.79% +55.57%
Empower Variable Annuity........ +18.84% +18.39% +22.46% +9.59% +13.90% +55.73%
Wall Street Series*............. +9.02% +11.35% +17.81% +11.64% +7.00% +51.71%
Income Preferred Variable
Annuity**....................... +14.18% +16.03% +9.91% +14.70% +6.37% +38.03%
<CAPTION>
LARGE CAP GROWTH AGGRESSIVE
GROWTH STOCK GROWTH
SERIES SERIES SERIES
-------------- -------------- --------------
<S> <C> <C> <C>
FOR THE YEAR ENDED
DECEMBER 31, 1999:
NET ASSET VALUE PER SHARE:
Beginning of year.............. $12.04 $41.09 $16.70
End of year.................... $15.05 $45.14 $33.79
ACCUMULATION UNIT
PERFORMANCE: (UNAUDITED)
Fortis Opportunity
Annuity/Masters
Variable Annuity............. +25.52% +53.09% +106.46%
Harmony Investment Life........ +26.27% +54.01% +107.70%
Wall Street Series 220/500..... +25.74% +53.37% +106.82%
Wall Street Series Survivor.... +25.52% +53.09% +106.45%
Empower Variable Annuity....... +25.64% +53.24% +106.66%
Wall Street Series*............ +15.43% +53.24% +98.52%
Income Preferred Variable
Annuity**...................... +16.60% +43.69% +61.69%
</TABLE>
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OPERATING EXPENSES:***
<TABLE>
<CAPTION>
U.S. GLOBAL
MONEY GOVERNMENT DIVERSIFIED GLOBAL HIGH ASSET ASSET GROWTH &
MARKET SECURITIES INCOME BOND YIELD ALLOCATION ALLOCATION VALUE INCOME
SERIES SERIES SERIES SERIES SERIES SERIES SERIES SERIES SERIES
------ ---------- ----------- ------ ------ ---------- ---------- ------ --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FOR THE YEAR ENDED
DECEMBER 31, 1999:
Investment Advisory and
Management Fee.................. .30% .47% .47% .75% .50% .90% .47% .70% .63%
Other Expenses..................... .05% .05% .07% .15% .07% .12% .05% .08% .06%
--- --- --- --- --- ---- --- --- ---
TOTAL FORTIS SERIES OPERATING
EXPENSES........................ .35% .52% .54% .90% .57% 1.02% .52% .78% .69%
--- --- --- --- --- ---- --- --- ---
</TABLE>
<TABLE>
<CAPTION>
S&P BLUE CHIP INTERNATIONAL MID CAP SMALL CAP GLOBAL LARGE CAP GROWTH AGGRESSIVE
500 INDEX STOCK STOCK STOCK VALUE GROWTH GROWTH STOCK GROWTH
SERIES SERIES SERIES SERIES SERIES SERIES SERIES SERIES SERIES
--------- --------- ------------- ------- --------- ------ --------- ------ ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FOR THE YEAR ENDED
DECEMBER 31, 1999:
Investment Advisory and
Management Fee................ .40% .87% .84% .90% .90% .70% .90% .61% .66%
Other Expenses.................. .06% .05% .10% .28% .14% .07% .07% .05% .06%
--- --- --- ---- ---- --- ---- --- ---
TOTAL FORTIS SERIES OPERATING
EXPENSES...................... .46% .92% .94% 1.18% 1.04% .77% .97% .66% .72%
--- --- --- ---- ---- --- ---- --- ---
</TABLE>
* For the period May 3, 1999 to December 31, 1999.
** For the period October 1, 1999 to December 31,1999.
*** Represents the expenses of the series itself, without the expenses
associated with the variable annuities or variable universal life insurance
policies.
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HOW TO USE THIS REPORT
For a quick overview of each
portfolio's performance during
the past year, refer to the
Highlights box. The letter from
the portfolio managers and
president provides 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>
<S> <C>
CONTENTS
Letter to Shareholders 3
Schedules of Investments
Money Market Series 22
U.S. Government Securities Series 23
Diversified Income Series 25
Global Bond Series 31
High Yield Series 33
Global Asset Allocation Series 37
Asset Allocation Series 42
Value Series 51
Growth & Income Series 53
S&P 500 Index Series 56
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 94
Independent Auditors' Report 110
Directors and Officers 111
Products and Services 112
</TABLE>
2
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[PHOTO]
FORTIS SERIES FUND, INC. ANNUAL REPORT,
DECEMBER 31, 1999
DEAR SHAREHOLDER:
The U.S. economy continued its robust expansion in 1999. For the year, GDP
advanced more than 4% fueled by strong consumer spending, particularly on
housing and related items and autos as well as corporate spending on technology
and telecommunications. Most impressively, this growth was achieved without
generating significantly higher inflation, which remained around 2% for the
year. During the year, the Federal Reserve did raise interest rates three times
in pre-emptive moves that were designed to fight emerging pressures from higher
oil, tobacco, and wage costs. Clearly, the decade-long trend of higher
productivity has been extremely important in mitigating these cost pressures.
Corporations were able to offset higher costs and earnings for the S&P 500 rose
approximately 18% for the year.
1999 was another extraordinary year for the stock market. The S&P 500 advanced
21.04%, the DJIA, 27.21%, the S&P Mid Cap Index, 14.70% and the Russell 2000,
21.36%. The year will also be remembered as the best IPO market on record. It
also was one of the most volatile years in recent history. All of the major
indices were down in the first and third quarters and up in the second and
fourth quarters. Investors periodically became concerned about inflationary
pressures that were then dampened with prompt Federal Reserve action.
The market's advance was extremely narrow. More that 70 of the stocks in the S&P
500 were down for the year by more than 10%. Clearly, the growth prospects for
many technology, communications, and small cap issues garnered the attention of
investors at the expense of all other sectors. In the final quarter of the year,
the market broadened to include many mid cap and small cap issues that had been
ignored in the previous year. Low valuations and the expectation for very strong
real growth finally were rewarded with renewed investor attention.
Our outlook for 2000 calls for continuing economic growth, albeit at a reduced
pace. We believe that the Federal Reserve will again tighten and that higher
interest rates will affect consumer spending as the year progresses.
Nevertheless, GDP is expected to advance 3.5% and corporate profits should rise
10-12%. The U.S. market will benefit in 2000 from improving economic growth in
both Europe and Asia. Given this outlook, we continue to believe that equities
should prove to be a rewarding investment this year although the gains may be
less spectacular than those experienced in 1999.
Last year the bond market experienced the second worst performance in the past
two decades (1994 had been the worst), turning in a negative total return (price
change plus income). Like 1994, the year began on the heels of a bond rally and
deteriorated in the process of Fed tightening. The Shearson Lehman
Government/Corporate Index produced a -2.15% return in 1999, with the longest
maturities suffering the greatest damage. Long Treasuries, as measured by the
Shearson Treasury 20+ Year Index, for example, produced -10.06% in total return.
All this despite a relatively low and stable rate of inflation. Monetary policy
was focused on "preemptive" action to head off possible inflationary pressure
from tight labor markets. Lip service was paid to the substantially favorable
impact of technology on productivity, but the Fed's actions reflect an
entrenched adherence to the tenet that dipping too far into the available supply
of employable labor will produce unwelcome upward pressure on open market
prices. This mindset on the part of the policy-setting Federal Open Market
Committee (FOMC) will continue during 2000, reinforced by the Chairman's
renomination and a slightly more conservative committee composition due to the
specific players involved in the annual rotation of the board. The problem is
that the Fed must enlist the aid of the financial markets to effectively slow
the momentum of growth. But, it must do so without pushing so hard as to produce
recessionary forces, particularly during an election year.
We believe that the market offers an unusually attractive opportunity for
investors to increase their bond holdings, rebalancing their portfolios
following a prolonged period of outperformance by equities. History provides
persuasive evidence that most bull markets in bonds begin before the Fed is
through tightening monetary policy and, therefore, before short term rates peak.
This year the potential for bonds is enhanced by the budget surplus and
associated reduction of Treasury bonds in the marketplace, particularly at the
long end of the maturity spectrum. Real interest rates (the difference between
the inflation rate and the yield of a bond) at around 4% (subtract 2.7% CPI from
6.74% yield presently offered by the 5-year Treasury note, for example) are
quite a bit higher than the historic average. This suggests the potential for
improved bond performance if, as we believe, the Fed is successful in heading
off a meaningful uptick in inflation. Yield spreads (the incremental yield above
comparable maturity Treasury securities) for non-government securities have
widened recently and offer superior performance potential through income
generation and price appreciation. This is particularly evident in high yield
bonds, where yields to maturity in excess of 10%, combined with the prospect of
price increases, can produce returns competitive with those historically
associated with the stock market. In short, we believe this to be an opportune
time to diversify portfolios by increasing your commitment to a variety of fixed
income investments.
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>
3
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY AS OF 12/31/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Banks 24.7%
Diversified Finance 15.7%
Utilities-Electric 11.4%
Consumer Finance 10.4%
Captive Auto Finance 10.3%
Captive Equipment Finance 7.9%
Brokerage and Investment 6.1%
Captive Oil Finance 4.0%
Oil-Refining 3.4%
Food 3.2%
Industrial 2.9%
</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 SECURITIES.
U.S. financial markets have operated within very favorable economic conditions
for most of the last decade and should continue to do so in 2000. The U.S.
economy has been growing at a healthy 4% annual rate over the past four years
and is poised to grow nearly as fast next year. A year ago it appeared that the
economic problems of Asia, Russia and Latin America would slow the U.S.
expansion. By the spring of 1999, it became evident that many regions of the
world were recovering more quickly than expected and that domestic growth would
not slow. Throughout most of this period of exceptional growth, inflation had
been declining, but last year, higher oil prices caused inflation to rise
slightly. In response to growing inflationary pressures the Federal Reserve Bank
("the Fed") raised short-term rates 0.75% in a series of 0.25% moves. The hike
in short-term rates fully reversed the 0.75% cut in rates that the Fed had made
in late 1998 in reaction to global economic problems.
For the year ending December 31, 1999, the fund returned 4.96% compared to 5.32%
in 1998. Short-term rates were lower in 1999 because the Fed had lowered the
federal funds rate 0.75% in late 1998 and rates stayed at the lower levels until
the Fed began raising rates in the latter half of 1999. Rates are likely to move
even higher this year so we look for the fund's return to improve in 2000.
The fund continues to place great emphasis on high quality and liquidity, while
looking to target the fund's average maturity at an optimal length. Throughout
most of 1999 we targeted the fund's average maturity between 30 and 60 days. In
the first half of the year the average maturity of the fund remained near the
middle of that range. In late May, a combination of high levels of consumer
spending and tight labor markets led us to believe that the Fed would have to
raise rates to keep inflation in check. As a result we lowered the average
maturity to 35 days, where it remained until early September. At that time,
commercial paper issuers began to address their year-end funding needs much
earlier than normal due to their Y2K concerns. This phenomenon made the yields
on longer maturities very attractive. Although our outlook for short-term rates
did not change, we began lengthening the average maturity back to 60 days in
order to take advantage of the higher yields available on longer dated paper.
Feeling that short-term rates will continue to rise in the first half of 2000 we
returned to a 35-day average maturity by year-end.
OUTLOOK
Looking forward, we expect economic growth to moderate slightly over the next
year as the effects of higher rates take hold. As always, threats to the economy
(such as a stock market correction or rising inflation) still exist, however,
the probability of a significant slowdown appears quite remote right now. While
productivity gains and more intense competition have kept overall inflation low,
the strong job market and rising global demand have increased the odds that
inflation will rise in the coming year. The Fed's recent rate hikes were
intended to preemptively combat inflation and we feel that they will be
successful in doing so.
4
<PAGE>
PORTFOLIO ALLOCATION
AS OF 12/31/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
FNMAs 36.0%
U.S. Treasury Securities 18.6%
Other Direct Federal Obligations 16.2%
FHLMCs 15.2%
Cash Equivalents/Receivables 6.3%
GNMAs 5.3%
Other Government Agencies 2.4%
</TABLE>
TOP 10 HOLDINGS AS OF 12/31/99
<TABLE>
<CAPTION>
Percent of
Bonds Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. TVA Global (6.375%) 2005 10.4%
2. FHLMC (5.75) 2003 6.7%
3. U.S. Treasury Note (5.50%) 2003 6.6%
4. FHLMC (5.75) 2008 6.0%
5. Federal Home Loan Bank (7.31%) 2004 5.8%
6. U.S. Treasury Note (6.125%) 2007 4.0%
7. U.S. Treasury Bond (8.125%) 2021 3.8%
8. GNMA (7.50%) 2027 3.6%
9. FNMA (6.00%) 2029 3.5%
10. FNMA (7.00%) 2029 3.4%
</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.
The last year of the millennium was a difficult one for the Fixed Income
markets. Early 1999 saw a change in investor sentiment from easing expectations
to tightening fears. Concerns about emerging market contagion and a slowdown in
U.S. growth were replaced by strong economic data and concerns of potential
inflation increases. Strong job growth (1999 saw almost 2.7 million new jobs
created) and strong consumer spending (more than a 5% increase in 1999) combined
to help produce 4% real GDP growth for the year. This growth, coupled with a
rebound 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 year, the
Fed made three tightening moves (June, August and November) which brought the
funds rate back to the 5.5% pre-crisis level of 1998. The bond yield drifted
higher and higher throughout the year. The low point in yield occurred in
January (5.07%) only to close the year yielding 6.48%. 1999 was the second worst
year in the bond market's history. The Federal Reserve's interest rate hikes
resulted in short-term rates moving up more in yield than did long-term rates.
The yield difference between the 30-year and 2 year Treasuries began the year at
56 basis points, only to end the year at 24 basis points.
We entered 1999 long to our benchmark with the expectation that economic growth
was going to slow. In early April we shortened our portfolio's duration from
107% to 100% of the benchmark, as we became concerned that economic growth was
going to be faster than we initially expected. In addition, in January we
increased our Mortgage Backed Security (MBS) exposure from a slight underweight
to a 10% overweight. We maintained the overweight for the balance of the year,
ending the year with a 12% overweight. The MBS overweight aided our performance
as MBS outperformed Treasuries by 1.28% in 1999. We also maintained an agency
debenture overweight during the year ending the year 8% overweight. This also
aided our performance slightly as agency debentures outperformed Treasuries by
0.22% during the calendar year. Unfortunately, the outperformance associated
with our MBS and Agency debenture overweights were not enough to offset the
sharp rise in interest rates and its impact on the fund. As a result, the
portfolio, which has a 4.75-year duration, produced a -1.94% total return,
compared to the Lehman Brothers Intermediate Government Index which has a
3.14-year duration and produced a +0.49% total return.
Going forward, we believe that economic growth will moderate from the 4% GDP
pace of last year. We also expect inflation to rise, although modestly. With
expectations that the Fed will further tighten monetary policy, in the short
term we expect to keep our duration either short or neutral to our benchmark. In
addition, tighter monetary policy and the Treasury's recently announced plans to
repurchase longer maturity debt suggests to us that yield curve could invert
temporarily, with shorter maturities yielding more than longer maturities.
Finally, we believe that the incremental yield that both MBS and agency
debentures offer versus Treasuries continues to justify an overweight position.
VALUE OF $10,000 INVESTED JANUARY 1, 1990
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C> <C>
Lehman Brothers Intermediate Gov't Bond Index** U.S. Government Securities Series
01/01/90 10,000 10,000
90 10,956 10,793
91 12,501 12,343
92 13,368 13,101
93 14,460 14,339
94 14,207 13,416
95 16,255 15,936
96 16,915 16,288
97 18,221 17,767
98 19,768 19,344
99 19,864 18,969
U.S. GOVERNMENT SECURITIES SERIES
AVERAGE ANNUAL TOTAL RETURN*
1 YEAR 5 YEAR 10 YEAR
- -1.94% +7.17% +6.61%
</TABLE>
Annual period ended December 31
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** An unmanaged index of government bonds with an average maturity of three to
four years.
5
<PAGE>
PORTFOLIO ALLOCATION AS OF 12/31/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Corporate Bonds-Investment Grade 48.5%
Corporate Bonds-Non-Investment Grade 19.2%
U.S. Treasury Securities 10.3%
Asset Backed Securities 9.9%
U.S. Government Agencies 9.9%
Cash Equivalents/Receivables 2.2%
</TABLE>
TOP 10 HOLDINGS AS OF 12/31/99
<TABLE>
<CAPTION>
Percent of
Bonds Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. FNMA (7.00%) 2029 2.5%
2. FNMA (6.00%) 2014 2.5%
3. U.S. Treasury Note (6.125%) 2007 2.4%
4. U.S. Treasury Strip (6.55%) 2018 2.3%
5. U.S. Treasury Bond (8.125%) 2021 2.3%
6. GTE Corp. (7.51%) 2009 2.0%
7. U.S. Treasury Note (5.50%) 2003 1.9%
8. Mortgage Capital Funding, Inc. (7.90%) 2006 1.7%
9. Delta Air Lines (10.50%) 2016 1.5%
10. DLJ Mortgage Acceptance Corp. (8.80%) 2003 1.5%
</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.
1999 was the second worst year ever for the bond market. Fueled by recovering
global economies, rising commodity prices, tightening labor markets, and soaring
foreign and domestic equity markets, interest rates rose 1.5% on average over
the year. Faced with 4% real growth in the economy's 9th year of expansion, the
Federal Reserve Board reversed it 1998 interest rate cuts, raising the Federal
Funds rate 0.75% in three separate moves during the second half of the year. In
addition, the Fed shifted to a tightening bias at the December Federal Open
Market Committee (FOMC) meeting, effectively admitting that only its concerns
about Y2K prevented it from raising short rates again in 1999.
The market for non-Treasury securities exhibited uneven performance during 1999.
During the first quarter, yield premiums fell sharply as the fears of the 1998
global crisis diminished and liquidity returned to the markets. During the
second and third quarters, corporate bonds gave most of the first quarter's
performance back, as high levels of issuance ahead of year-end, pushed yield
premiums (spreads) almost as high as they were during 1998. This was partially
reversed in the fourth quarter, once again driven by a lack of supply in the
market, as well as the realization that disruptions associated with Y2K would
not be as severe as originally thought.
We began the year with a positive outlook on interest rates, believing that
1998's financial crisis would translate into slower growth both domestically and
abroad. Early in the second quarter, however, evidence of the global recovery
materialized, and we became convinced that the Fed would ultimately be forced to
raise short term interest rates in order to slow the pace of the domestic
economy. We then shortened the portfolio's duration to neutral versus its
benchmark, and, with the exception of several short term tactical moves during
the year, we have remained neutral since then. With respect to non-Treasury
assets, we reduced our exposure early in the second quarter, but then took
advantage of the supply related widening in spreads over the summer to increase
our exposure to Corporate Investment Grade, and Below Investment Grade
securities. We believe that the spreads in these sectors are more reflective of
short-term supply/demand imbalances than the fundamentals. As a result, they
offer long term value. For the year, the fund's return was -1.68% compared to a
- -2.15% for the Lehman Government Corporate Index and -0.82% for the Lehman
Aggregate Index.
OUTLOOK
We expect that the rise in rates in the second half of 1999, coupled with the
Fed tightening we expect in the first quarter of 2000 will slow the economy down
to a more tolerable 3-3.5% growth rate for the year. We also anticipate that
inflation will pick up modestly from its current 2.1% (Core Year-Over-Year CPI
as of 11/99), but not pose a serious threat to the overall level of interest
rates. This combination of slower growth and continued tame inflation data will
ultimately lead to lower bond yields and lower yield premiums for non-Treasury
securities in the next 12 months. Finally, we wouldn't be surprised to see
yields on shorter maturity Treasuries exceed those of longer maturity
Treasuries. With the market anticipating up to an additional one percent
increase in the Federal Funds rate this year, and the Treasury expected to
shorten the average maturity of its outstanding debt through a buyback program,
the supply/demand dynamics favor long term interest rates.
VALUE OF $10,000 INVESTED JANUARY 1, 1990
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
LEHMAN BROTHERS DIVERSIFIED INCOME
AGGREGATE BOND INDEX** SERIES
<S> <C> <C>
1/1/90 10,000 10,000
90 10,896 10,887
91 12,640 12,484
92 13,575 13,368
93 14,899 15,073
94 14,464 14,287
95 17,136 16,752
96 17,759 17,448
97 19,473 19,269
98 21,165 20,485
99 20,991 20,141
DIVERSIFIED INCOME SERIES
AVERAGE ANNUAL TOTAL RETURN*
1 YEAR 5 YEAR 10 YEAR
- -1.68% +7.11% +7.25%
</TABLE>
Annual period ended December 31
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** An unmanaged index of government, corporate and mortgage-backed securities
with an average maturity of approximately nine years.
6
<PAGE>
PORTFOLIO DIVERSIFICATION BY COUNTRY AS OF 12/31/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Germany 24.6%
United States 24.3%
Cash Equivalents/Receivables 13.8%
France 9.9%
Canada 8.8%
Denmark 5.4%
Spain 4.4%
Japan 3.7%
United Kingdom 3.6%
Netherlands 1.5%
</TABLE>
TOP 10 HOLDINGS AS OF 12/31/99
<TABLE>
<CAPTION>
Percent of
Bonds Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Bundesrepublik Deutschland (EMU) (6.50%) 2005 9.6%
2. Government of France (EMU) (4.50%) 2002 5.5%
3. U.S. Treasury Bond (6.125%) 2029 5.3%
4. FNMA (5.125%) 2004 4.9%
5. French Government (EMU) (6.50%) 2006 4.4%
6. Kingdom of Denmark (9.00%) 2000 4.3%
7. Bundesobligation (EMU) (3.25%) 2004 4.3%
8. Bundesobligation (EMU) (4.50%) 2003 4.0%
9. Int'l Bank Reconstruction & Development (4.75%)
2004 3.7%
10. U.K. Treasury (5.00%) 2004 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.
The Fortis Series Global Bond Series returned -7.53% in 1999, compared to its
benchmark the Salomon Brothers Global Bond Index, which returned -4.27%. The
negative performance of the Series and the index occurred against a backdrop of
over one hundred-interest rate decreases across the globe from October 1998 to
October 1999. This was an effort by the international community to buoy
financial markets and provide a cushion for lending across borders. In the fall
of 1999, the Federal Reserve Board changed directions by raising interest rates
in an effort to head off perceived inflationary signs.
The fund is currently overweight in U.S. and German bonds, relative to the
index. Given the rising interest rate environment in both countries throughout
1999 and coupled with the fund's underweight in Japanese bonds-which rallied in
December as supply concerns subsided and deflation persisted. The Series
underperformed its benchmark.
On March 13, 2000, this Series will become the Multisector Bond Series and will
be subadvised by AIM Advisors, Inc. Under prior management the Series invested
primarily in high-quality U.S. and foreign government and corporate fixed-income
securities. Under AIM's management the Series will invest primarily in
investment-grade corporate bonds and U.S. government securities. In addition,
the Series will be able to invest up to 40% in foreign bonds, both government
and corporate, and up to 35% in non-investment grade "high yield" bonds. This
increased flexibility should provide more opportunity for the Series to perform
well.
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 11,904 11,914
96 12,335 12,310
97 12,364 12,327
98 14,256 13,990
99 13,648 12,937
GLOBAL BOND SERIES
AVERAGE ANNUAL TOTAL RETURN*
1 YEAR 5 YEAR
- -7.53% +5.28%
</TABLE>
Annual period ended December 31
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** An unmanaged index of world government bonds with maturities of at least
one year.
*** Date shares were first offered to public.
7
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY
AS OF 12/31/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Telecommunications 23.2%
Other 20.9%
Cable Television 13.7%
Cash Equivalents/Receivables 7.0%
Telephone Services 6.5%
Entertainment 6.5%
Broadcasting 5.8%
Chemicals 4.1%
Automobile & Motor Vehicle Parts 3.9%
Health Care Services 3.3%
Printing 2.9%
Oil-Crude Petroleum and Gas 2.2%
</TABLE>
TOP 10 HOLDINGS AS OF 12/31/99
<TABLE>
<CAPTION>
Percent of
Bonds Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Telecorp PCS, Inc. (11.625%) 2009 2.8%
2. Williams Communications Group, Inc. (10.875%) 2009 2.7%
3. United Pan-European Communications N.V. (11.25%)
2009 2.6%
4. Nextlink Communications (10.50%) 2009 2.6%
5. Argosy Gaming (10.75%) 2009 2.3%
6. Adelphia Communications (9.375%) 2009 2.2%
7. United International Holdings (12.49%) 2008 1.9%
8. NTL Communications Corp. (12.375%) 2008 1.8%
9. Splitrock Services, Inc. (11.75%) 2008 1.7%
10. ITC Deltacom, Inc. (11.00%) 2007 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.
The twelve-month period ended December 31, 1999, was a period of healing for the
U.S. financial markets; including the high yield bond market. The year began in
the aftermath of a global financial crisis, which had prompted the Federal
Reserve to add liquidity to the financial system and cut the Federal Funds rate
three times in rapid succession in late 1998. These emergency measures helped
stabilize the high yield market early in 1999, and set the stage for a potential
recovery to more normal levels. However, attempts by the bond market to move
higher were short-lived as the Federal Reserve reversed course and took back the
interest rate cuts once investor confidence had been restored and a global
recovery appeared underway. Despite the significant increase in interest rates
that occurred during 1999, the Fund managed to return 1.17%, compared to the
return for the Lehman Brothers High Yield Index of 2.39%.
During the first half of the year, the high yield market benefited from an
improved outlook for corporate earnings and contained expectations regarding
future inflation. However, rising interest rates and reduced investor demand for
fixed income products dampened an early rally, leaving the high yield market
with a modest 2.96% gain for the first half of 1999, according to Chase
Securities, Inc.
By the second half of 1999, corporate issuers and investors alike began to focus
on calendar year-end and the potential implications of "Y2K". Corporations
sought to provide for year-end funding needs in advance, creating a temporary
bulge in supply, while investors sought incremental safety and security in their
investment portfolios. The downward pressure exerted by these trends caused a
decline in high yield bond prices, which offset the interest income earned
during the period. The net effect was a flat second half for the high yield
market.
For the year 1999, the fund's performance was enhanced by its heavy exposure to
top-performing sectors such as cable, communications and media. The fund's
performance was held back by its conservative investment posture which kept it
from fully participating in the market rally early in the year. The fund was
also hurt, along with most of the high yield market, by our holdings in higher
quality, interest rate sensitive bonds, which tend to under-perform when
interest rates move higher.
In July of this year, a new portfolio manager, Ken Peterson, was added to the
fund. Mr. Peterson brings extensive knowledge and experience managing high yield
portfolios accumulated during his 14-year investment career. The strategy he
employs is to couple a disciplined top-down approach with intensive-bottom up
analysis to deliver optimal investment returns.
OUTLOOK
For the coming year, we expect the US economy to decelerate, in part due to the
drag on the economy caused by higher intermediate interest rates. While the
economy is strong and resilient, the labor markets are tight, natural resource
prices are firming and wages are creeping upward. This will likely cause the
Federal Reserve to raise rates, moderately slowing the economy but preventing
excesses from building up in the nation's economic and financial systems. Our
fund is well positioned for such an environment with a higher relative quality
bias and a focus on industry sectors that tend to generate stable cash flows. At
today's valuation levels, we feel the high yield market represents good
fundamental value and offers investors the potential for attractive returns.
VALUE OF $10,000 INVESTED MAY 2, 1994
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
LEHMAN BROTHERS HIGH YIELD
HIGH YIELD INDEX** SERIES
<S> <C> <C>
5/2/1994 10,000 10,000
94 10,163 9,925
95 12,112 11,189
96 13,487 12,366
97 15,208 13,572
98 15,492 13,657
99 15,862 13,816
HIGH YIELD SERIES
AVERAGE ANNUAL TOTAL RETURN*
1 YEAR 5 YEAR SINCE MAY 2, 1994**
+1.17% +6.84% +5.87%
</TABLE>
Annual period ended December 31
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of lower quality, high yield corporate debt securities.
8
<PAGE>
PORTFOLIO ALLOCATION AS OF 12/31/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Equity Securities 56.4%
Foreign-Government Bonds-Investment Grade 25.8%
Cash Equivalents/Receivables 7.7%
U.S. Government Securities 5.7%
Corporate Bonds-Investment Grade 4.4%
</TABLE>
TOP 10 HOLDINGS AS OF 12/31/99
<TABLE>
<CAPTION>
Percent of
Securities Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Japan JGB #207A (0.90%) 2008 3.6%
2. Bundesrepublik Deutschland (6.50%) 2027 2.4%
3. Government of France (5.25%) 2008 2.4%
4. Nippon Telegraph & Telephone Corp. 1.9%
5. Compagnie Financiere Richemont AG 1.9%
6. Nestle S.A. 1.6%
7. Bundesrepublik Deutschland
(6.5%) 2005 1.6%
8. Telefonica S.A. 1.5%
9. U.S. Treasury Note (6.25%) 2007 1.4%
10. Government of France (5.50%) 2007 1.4%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES FOR THE PERIOD ENDED 12/31/99
<TABLE>
<S> <C>
STOCK ADDITIONS: STOCK ELIMINATIONS:
Aventis S.A. Bongrain S.A.
Daiichi Pharmaceutical Co., Ltd. Data General Corp.
Fort James Corp. Fujisawa Pharmaceutical Co.
GTE Corp. G.I.B. Group S.A.
Hong Kong Electric Holdings Karstadt AG
Pernod Ricard Lion Nathan Ltd.
Pioneer Electronic Corp. Matsushita Electric Industrial Co. Ltd.
Sainsbury (J) plc Pohjola Group Insurance Corp. 'B'
Sears, Roebuck & Co. Tenneco, Inc. (with rights)
Westpac Banking Corp., Ltd. Wolseley plc
</TABLE>
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. THE PORTFOLIO MANAGERS INVEST IN GLOBAL
STOCKS, BONDS AND MONEY MARKET INSTRUMENTS IN PERCENTAGES THAT MAY VARY WITH
MARKET CONDITIONS.
PERFORMANCE
During 1999, the portfolio produced an extremely disappointing performance,
returning -0.87% for the period compared to a return of 13.18% for the benchmark
of 60% MSCI World Index / 40% JPM Global Bond Index. 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 its benchmark, producing
a return of 4.62% versus 25.34% for the MSCI Index. Importantly over 13% of this
discrepancy in performance came in the final quarter of the year when
performance was seriously constrained by our lack of exposure to the phenomenal
performance of certain mega cap technology firms. The strong performance of the
World Index masked divergent sectoral performance. For example, the best
performing sector of the World Index, information technology, rose 228% last
year while the worst, the defensive Consumer Staples group, actually fell 7%.
Combining our severe underweight to information technology and our significant
overweight to consumer staples explained roughly 70% of our underperformance in
the fourth quarter and for the year.
The global fixed income portion of the portfolio also underperformed but by a
smaller degree; the portfolio producing a return of -6.66% compared to a
benchmark return of -5.07%. While rising yields caused the portfolio to return a
small negative return in local currency terms, this translated into more
significant negative returns when measured in U.S. dollars due to the weakness
of the European currencies. In terms of relative performance, our long duration
exposure to the dollar bloc and European markets and our short duration exposure
to the Japanese market were negative factors. Also subtracting from performance
was our underweighting to the yen and our underweight exposure to the long end
of the UK market. More positively, our exposure to the credit sector enhanced
performance.
STRATEGY
The structure of the equity portion 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 significantly underweight in the US,
slightly underweight in Japan and overweight in the European markets. In terms
of sectors, we have retained an overweight exposure to the more defensive
sectors, for example consumer staples and utilities, and also those sectors
which we feel should outperform in line with an expanding global economy, such
as building materials.
The global fixed income portion remained long duration in the dollar bloc and
European markets and short duration in the Japanese market. In terms of sector
positioning, the fund retained an overweight exposure to the credit sector.
Activity within the fund throughout the year was reasonably low. Within Europe,
we added exposure to the Danish bond market and in the UK, cut all exposure to
longer than 5-years adding duration to the euro market. In terms of currency
positioning, the fund remained underweight in the Japanese yen versus the US
dollar and the European currencies although this was shifted more in favour of
the European currencies in December. The portfolio also continued to increase
exposure to the credit sector throughout the year.
OUTLOOK -- GLOBAL EQUITY
We see the "technology" bubble as the biggest risk in the global equity market
following December's huge run. The portfolio's value discipline has precluded us
from participating in this bubble. The technology sector trades at 91 times cash
flow whilst the MSCI World Index trades at 18 times cash flow. The portfolio
owns little in the way of technology or other mega-cap companies that have
dominated equity market returns in the last two years. Instead, we have
concentrated on undervalued companies in the "old economy" such as financials,
food, beverages, tobacco and utilities. While these sectors have underperformed
in 1999, they are now extremely cheap relative to the excesses within the
technology area, where investor behavior remains exceptionally fickle, witness
Lucent, down 34% over the past two weeks.
The extreme polarization of the markets continues to create opportunities to buy
good businesses at great prices while the disparity between new Japan and old
Japan has now grown so large that we are also finding suitable risk reward
tradeoffs among the third tier restructuring stories.
Despite the difficulties that have faced value investors over the past two
years, we expect the portfolio to perform defensively relative to the index in a
weak overall market should interest rates continue to rise. Likewise, we expect
our overweighting to Europe and underweighting to the US to bear fruit this year
given Europe's improving fundamentals and more attractive relative valuation.
Implicit in today's "new economy" valuations are massive expectations for
growth. As the market is paying a lot for the promise of future cash flows these
"new economy" stocks should also be more vulnerable to higher interest rates
(just like long duration bonds) although, somewhat surprisingly, the market has
chosen to ignore this relationship for now.
OUTLOOK -- GLOBAL FIXED INCOME
The outlook for the global economy continues to improve and over the next year,
we expect activity between the regions to be more closely synchronised. In the
euro-zone, low real interest rates and an undervalued currency should continue
to support the broadening recovery while in Japan, the economy will continue to
benefit, at least in the short term, from ongoing fiscal stimulus. Meanwhile in
the U.S., we expect tighter monetary conditions to lead to some slowdown in
domestic demand growth and activity to moderate from its current 4% pace.
We believe the rise in yields in the dollar bloc and European markets over the
past year reflects this strong growth outlook as being already discounted by the
bond markets, and that it is inflation that holds the key to bond market
performance in 2000. We expect that in the absence of significantly higher
inflation, the potential for a further rise in yields will be limited, and as a
result, we retain our modestly positive view for this year.
In terms of currency positioning, we believe that growth and interest rate
differentials will continue to disadvantage the Japanese yen and we retain our
bearish stance. At current levels, the yen real exchange rate is close to a
10-year high versus the euro and as such we view the yen as being particularly
overvalued relative to the euro. We have therefore shifted our yen
underweighting in favour of the euro and euro-linked currencies which we expect
to recover over the near or medium term in line with a stronger European
economy.
VALUE OF $10,000 INVESTED JANUARY 3, 1995**
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
SALOMON BROS WORLD MSCI WORLD GLOBAL ASSET
GOV'T BOND INDEX+ INDEX++ ALLOCATION SERIES
<S> <C> <C> <C>
1/3/1995 10,000 10,000 10,000
95 11,904 12,132 11,747
96 12,335 13,830 13,242
97 12,364 16,074 15,031
98 14,256 20,059 17,430
99 13,648 25,142 17,278
GLOBAL ASSET ALLOCATION SERIES
AVERAGE ANNUAL TOTAL RETURN*
1 YEAR 5 YEAR
- -0.87% +11.56%
</TABLE>
Annual period ended December 31
Past performance is not indicative of future performance. Investment
return and principal value will fluctuate so that shares, when redeemed,
may be worth more or less than their original cost. This represents the
performance of the Series itself, without the expenses associated with the
variable annuities or variable universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
+ 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.
** Date shares were first offered to the public.
9
<PAGE>
PORTFOLIO ALLOCATION AS OF 12/31/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Equity Securities 64.6%
Corporate Bonds - Investment Grade 15.3%
Corporate Bonds - Non-Investment Grade 6.7%
U.S. Treasury Securities 5.8%
U.S. Government Agencies 3.3%
Asset Backed Securities 2.8%
Cash Equivalents/Receivables 1.5%
</TABLE>
TOP 10 HOLDINGS AS OF 12/31/99
<TABLE>
<CAPTION>
Percent of
Securities Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. General Electric Co. 2.0%
2. Microsoft Corp. 2.0%
3. U.S. Treasury Note (6.125%) 2007 1.7%
4. JDS Uniphase Corp. 1.6%
5. Interpublic Group of Companies, Inc. 1.5%
6. U.S. Treasury Note (5.875%) 2004 1.4%
7. American International Group, Inc. 1.3%
8. AES Corp. 1.3%
9. Equant N.V. NY Shares 1.3%
10. AMFM, Inc. 1.2%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES
FOR THE PERIOD ENDED 12/31/99
<TABLE>
<S> <C>
STOCK ADDITIONS: STOCK ELIMINATIONS:
AMFM, Inc. Abbott Laboratories
AT&T Corp. - Liberty Media Fannie Mae
Group Fiserv, Inc.
Automatic Data Processing, Groupe Danone ADR
Inc. MCI WorldCom, Inc.
Cabletron Systems, Inc. Pharmacia & Upjohn, Inc.
CBS Corp. Philip Morris Companies, Inc.
Columbia HCA Healthcare Corp. Sun International Hotels Ltd.
Equant N.V. NY Shares Time Warner, Inc.
i2 Technologies, Inc. Unisys Corp.
JDS Uniphase Corp.
Motorola, Inc.
</TABLE>
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 MIX OF U.S. STOCKS, BONDS
AND MONEY MARKET INSTRUMENTS IN PERCENTAGES THAT MAY VARY WITH CURRENT MARKET
CONDITIONS.
1999 proved to be another stellar year for the equity market as a combination of
strong earnings growth and low inflation ignited investor appetite for stocks.
Higher valuation levels on higher earnings are a potent combination for stock
prices. The fixed income markets, however, faced three consecutive rate
increases by the Federal Reserve as concerns over inflationary prospects
surfaced. An investment environment such as this past year underlines the
advantage of an asset allocation fund.
For the year ended December 31, 1999, the Asset Allocation Series returned
19.56% this compares to a gain of 21.04% for the S&P 500 and a decline of -0.82%
for the Lehman Brothers Aggregate Bond Index.
The asset allocation between stocks and bonds was targeted at a neutral 65%
stocks, 35% bonds at year-end. This ratio had been reduced by the Asset
Allocation Committee in late summer to 60% equities, and then increased in
November back to 65%. In the equity area, telecommunications and service sectors
are overweighted versus the market while basic materials and consumer-related
sectors have been underweighted. Telecommunication and technology holdings
contributed to performance while energy and financial holdings generally
detracted from overall performance.
In the fixed income portion of the fund, we shortened the portfolio's duration
to the benchmark early in the second quarter when we became convinced that
domestic growth was not as severely impacted by the 1998 global crisis as we had
anticipated, and that the 1998 interest rate cuts would be ultimately reversed.
In fact, the Federal Reserve did reverse those 0.75% cuts over the second half
of the year while we maintained a neutral duration in the portfolio. As for the
composition of the fixed income portion, we took advantage of a supply-driven
widening of corporate yield spreads to increase our exposure to corporate
investment grade and below investment grade securities. We believed the widening
will be reversed early next year and offer a good relative value compared to
government securities.
The capital markets face the prospect of rising interest rates by the Federal
Reserve as the economy continues its robust expansion. While earnings prospects
remain bright, rising interest rates could affect the valuation levels of
equities, which are near historic highs. In the equity area, we continue to
focus on companies with solid growth prospects at relatively attractive
valuation levels, and hence our neutral equity weighting.
The combination of slower growth and continued controlled inflation should
ultimately lead to a better overall interest rate environment and lower yield
premiums for non-Treasury securities over the next 12 months.
VALUE OF $10,000 INVESTED DECEMBER 1, 1990
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>
1/1/90 10,000 10,000 10,000
90 10,896 9,683 10,201
91 12,640 12,641 13,021
92 13,575 13,610 13,926
93 14,899 14,970 15,290
94 14,464 15,166 15,243
95 17,136 20,842 18,591
96 17,759 25,651 20,916
97 19,473 34,209 25,148
98 21,165 43,987 30,170
99 20,991 53,242 36,071
ASSET ALLOCATION SERIES
AVERAGE ANNUAL TOTAL RETURN*
1 YEAR 5 YEAR 10 YEAR
+19.56% +18.80% +13.69%
</TABLE>
Annual period ended December 31
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
+ 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.
10
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY
AS OF 12/31/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 36.2%
Financial Services 10.8%
Oil and Gas Field Services 7.7%
Insurance 7.6%
Health Care Services 7.3%
Banks 6.0%
Business Services 5.8%
Unit Investment Trust 4.2%
Computer-Hardware 4.1%
Broadcasting 3.9%
Utilities-Electric 3.4%
Cash Equivalents/Receivables 3.0%
</TABLE>
TOP 10 HOLDINGS AS OF 12/31/99
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Citigroup, Inc. 5.0%
2. S & P 500 Depositary Receipt 4.2%
3. Chase Manhattan Corp. 3.9%
4. Illinova Corp. 3.4%
5. United Healthcare Corp. 3.1%
6. Federated Department Stores, Inc. 3.0%
7. First Data Corp. 2.9%
8. AT&T Corp. - Liberty Media Group 2.8%
9. Tidewater, Inc. 2.7%
10. Diamond Offshore Drilling, Inc. 2.7%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES FOR THE PERIOD ENDED 12/31/99
<TABLE>
<S> <C>
ADDITIONS: ELIMINATIONS:
Aetna, Inc. (with rights) AT&T Corp.
Affiliated Computer Services, Inc. Ameritech Corp.
AT&T Corp. - Liberty Media Group Bank of America Corp.
Diamond Offshore Drilling, Inc. Bank One Corp.
Illinova Corp. Compaq Computer Corp.
Parker-Hannifin Corp. First Union Corp.
Reader's Digest Association, Inc. GTE Corp.
Class A McDonald's Corp.
S & P 500 Depositary Receipt Royal Dutch Petroleum Co. NY Shares
Tidewater, Inc. Walt Disney Co.
United HealthCare Corp.
</TABLE>
FORTIS SERIES FUND: VALUE SERIES
DESIGNED FOR INVESTORS WHO PREFER TO INVEST IN EQUITY OPPORTUNITIES AT
ATTRACTIVE VALUATIONS. THE PORTFOLIO MANAGERS CHOOSE STOCKS WITH CURRENT PRICES
THAT DO NOT NECESSARILY REFLECT THE STOCK'S POTENTIAL VALUE.
For the year ended December 31, 1999, the S&P Barra Value Index returned 12.72%
while the Fortis Value Series returned 8.96%. The portfolio underperformed the
index due to holding more smaller capitalization companies than the index.
The portfolio's primary strategy is to invest in undervalued companies with
accelerating growth, where we anticipate a company's growth rate to rise over
time. To the extent that we cannot find undervalued companies with 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.
Apple Computer, Columbia/HCA Healthcare, USA Networks and Liberty Media Group
were among the portfolio's better performing stocks during the past year.
Recently we have added a substantial position in oilfield services. We believe
that the oilfield services stocks have excellent opportunities for earnings
acceleration in the coming months due to the high price of oil. Their customer,
the oil industry, now finds it profitable to drill for oil after a prolonged
spell of relatively low oil prices. To fund our new position in oilfield
services stocks we have sold many of our international integrated oil companies.
While those companies have been enjoying substantial acceleration in earnings
growth over the past several months, it will become much more difficult for them
to sustain their recent growth into the future if only because the
year-over-year comparisons will become so much more difficult.
Looking ahead, we see the economy continuing to expand but at a slower rate. In
this environment we believe that the health care sector is a logical place for
us to invest because companies in the business of providing goods and services
used in the delivery of health care tend to enjoy relatively stable demand. We
are maintaining a below-average exposure to financial stocks because we believe
that the business environment will become more challenging for them in the
coming years. Rising interest rates or slowing global growth could negatively
affect the portfolio's performance. We continue to monitor the effects of
interest rates and the economy on the portfolio's holdings.
We remain focused on investing in undervalued companies with accelerating growth
or inexpensively valued growth. We believe that this investment philosophy will
provide good returns to shareholders for the long term.
VALUE OF $10,000 INVESTED MAY 1, 1996
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
<S> <C> <C> <C>
S&P Barra****
S&P 500*** Value Series Value Index
05/01/96 10,000 10,000 10,000
96 11,504 11,149 11,639
97 15,342 13,962 15,046
98 19,727 15,309 17,253
99 23,877 16,680 19,447
VALUE SERIES
AVERAGE ANNUAL TOTAL RETURN*
SINCE
1 YEAR MAY 1, 1996**
+8.96% +14.97%
</TABLE>
Annual period ended December 31
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of 500 common stocks
**** An unmanaged 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.
11
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY
AS OF 12/31/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 39.1%
Telephone Services 11.9%
Telecommunications 8.2%
Cash Equivalents/Recievables 7.2%
Computer-Software 5.0%
Drugs 5.0%
Financial Services 4.4%
Utilities-Electric 4.2%
Publishing 4.2%
Insurance 3.9%
Electrical Equipment 3.5%
Food 3.4%
</TABLE>
TOP 10 HOLDINGS AS OF 12/31/99
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. General Electric Co. 3.5%
2. SBC Communications, Inc. 3.4%
3. Microsoft Corp. 3.2%
4. American International Group, Inc. 3.0%
5. Global Crossing Conv. 7.00% 3.0%
6. Echostar Communications Corp. (4.875%) Conv. 2007. 2.7%
7. McGraw-Hill Companies, Inc. 2.4%
8. Tribune Co., Conv. (2.00%) 2029 2.3%
9. Corning, Inc. 2.2%
10. Alltel Corp. 2.1%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES FOR THE PERIOD ENDED 12/31/99
<TABLE>
<S> <C>
ADDITIONS: ELIMINATIONS:
American Home Products Corp. Clorox Co.
Automatic Data Processing, Duke Energy Corp.
Inc. Endesa S.A. ADR
Avon Products, Inc. France Telecom S.A. ADR
Columbia HCA Healthcare Corp. Glaxo Wellcome plc ADR
Corning, Inc. Groupe Danone ADR
Illinova Corp. Merck & Co., Inc.
Interpublic Group of New Plan Excel Realty Trust
Companies, Inc. Philip Morris Companies, Inc.
J.P. Morgan & Co., Inc. Rite Aid Corp.
Microsoft Corp.
Sysco Corp.
</TABLE>
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 DIVIDEND GROWTH PROSPECTS RELATIVE TO THE STANDARD AND POOR'S 500
STOCK INDEX. THE PORTFOLIO IS WELL DIVERSIFIED WITH EXPOSURE TO MANY SECTORS OF
THE ECONOMY.
The year 1999 proved to be another stellar year for equities as the market
embraced the strong earnings growth stemming from the robust economy. Inflation
remained benign which enabled valuations to expand on top of the higher level of
earnings. Economic recovery in international markets added to the positive
environment for the equity market. Fearful of a revival of inflation, the
Federal Reserve boosted interest rates three times during the year, which caused
some momentary bumpiness but did not derail the bull market.
For the full year of 1999, the Growth & Income portfolio posted an increase of
10.72%. This compares to a greater gain of 21.04% for the S&P 500. This
portfolio is generally less volatile than the S&P 500 and also produces a
current yield above the S&P 500. The technology sector performed particularly
well in 1999, a factor which hurt comparative performance. Technology stocks
generally pay little or no dividends and as a result, this sector was
significantly underweighted in the portfolio. The service and telecommunications
sectors were overweighted and contributed to performance results. The energy and
financial sectors were overweighted for most of the period but were both reduced
to below market weights by year-end.
The capital markets currently face the prospects of further Federal Reserve
tightening in the form of rate increases early in the new year. While the
economy remains robust and earnings prospects bright, higher interest rates will
likely cause some consolidation in the equity market after its recent strength.
Going forward, the investment approach for Growth & Income is being shifted
somewhat to a greater emphasis on growth versus current income. As a result,
technology issues held will likely rise as a percentage of assets. In this
period of high valuation and rising interest rates, great attention is being
paid to growth prospects and relative valuations.
VALUE OF $10,000 INVESTED MAY 2, 1994
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
S&P 500*** GROWTH & INCOME SERIES
<S> <C> <C>
5/2/94 $10,000 $10,000
94 $10,397 $10,174
95 $14,289 $13,196
96 $17,586 $16,035
97 $23,453 $20,475
98 $30,157 $23,181
99 $36,502 $25,664
GROWTH & INCOME SERIES
AVERAGE ANNUAL TOTAL RETURN*
1 YEAR 5 YEAR SINCE MAY 2, 1994**
+10.72% +20.33% +18.10%
</TABLE>
Annual period ended December 31
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of 500 common stocks.
12
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY AS OF 12/31/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Captial Spending 33.0%
Finance 17.3%
Health Care 9.0%
Consumer Cyclical 8.9%
Utilities 8.4%
Consumer Staples 6.3%
Energy & Related 6.1%
Consumer Discretionary 4.7%
Basic Industry 3.3%
Cash Equivalents/Recievable 1.4%
Metal & Mining 0.9%
Transportation 0.7%
</TABLE>
TOP 10 HOLDINGS AS OF 12/31/99
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Microsoft Corp. 4.8%
2. General Electric Co. 4.1%
3. Cisco Systems, Inc. 2.8%
4. Wal-Mart Stores, Inc. 2.5%
5. Exxon Mobil Corp. 2.2%
6. Intel Corp. 2.2%
7. Lucent Technologies, Inc. 1.9%
8. International Business Machines Corp. 1.6%
9. Citigroup, Inc. 1.5%
10. America Online, Inc. 1.3%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES
FOR THE PERIOD ENDED 12/31/99
<TABLE>
<S> <C>
ADDITIONS: ELIMINATIONS:
AFLAC, Inc. AirTouch Communications, Inc.
Analog Devices, Inc. Bankers Trust Corp.
Citrix Systems, Inc. Browning-Ferris Industries,
Conoco, Inc. Class B Inc.
Lexmark International Group, Harris Corp.
Inc. Class A Laidlaw, Inc.
Network Appliance, Inc. Morton International, Inc.
QUALCOMM, Inc. (with rights)
Teradyne, Inc. PacifiCorp.
Xilinx, Inc. Pioneer Hi-Bred International,
Yahoo!, Inc. Inc.
Tenneco Automotive, Inc.
Transamerica Corp.
</TABLE>
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 INDEX.
The fund closely tracked the return of the S&P 500 Index for both the quarter
and the year ended December 31, 1999. The fund returned 20.34% versus 21.04% for
the S&P 500 Index. The primary difference between the fund's performance and the
index's return is the effect of fund expenses.
The Series S&P 500 Index is designed to passively replicate the large
capitalization U.S. equity market as represented by the S&P 500 Index. The
portfolio uses a strategy of full replication, which entails holding all stocks
in the S&P 500 in direct proportion to their weight in the index. S&P 500
futures are utilized to efficiently manage daily cash flows.
The S&P 500 Index had a positive return for the year ended December 31, 1999,
outperforming both the S&P 400 Mid Cap Index and the S&P 600 Small Cap Index.
Stocks of electronics firms, communication equipment firms and aluminum
companies were among the best performing industries in the S&P 500. Among the
index's worst performing industries were tobacco firms and office equipment
companies.
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>
5/1/96 10,000 10,000
96 11,504 11,429
97 15,342 15,123
98 19,727 19,374
99 23,877 23,314
S&P 500 INDEX SERIES
AVERAGE ANNUAL TOTAL RETURN*
1 YEAR SINCE MAY 1, 1996**
+20.34% +25.97%
</TABLE>
Annual period ended December 31
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of 500 common stocks.
13
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY AS OF 12/31/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 37.9%
Computer-Software 11.4%
Financial Services 10.4%
Drugs 8.7%
Banks 5.3%
Media 4.7%
Electronic - Semiconductor 4.4%
Computer-Hardware 3.7%
Oil-Crude Petroleum and Gas 3.5%
Telephone Services 3.4%
Telecommunications 3.4%
Cash Equivalent/Receivables 3.2%
</TABLE>
TOP 10 HOLDINGS AS OF 12/31/99
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Microsoft Corp. 3.9%
2. Citigroup, Inc. 3.1%
3. General Electric Co. 2.4%
4. Cisco Systems, Inc. 2.2%
5. Freddie Mac 2.0%
6. Tyco International Ltd. 2.0%
7. Intel Corp. 1.9%
8. Wal-Mart Stores, Inc. 1.8%
9. Warner-Lambert Co. 1.8%
10. CBS Corp. 1.8%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES FOR THE PERIOD ENDED 12/31/99
<TABLE>
<S> <C>
ADDITIONS: ELIMINATIONS:
Applied Materials, Inc. AT&T Corp.
Corning, Inc. Federal-Mogul Corp.
Firstar Corp. First Union Corp.
Marsh & McLennan Companies, Galileo International, Inc.
Inc. Guidant Corp.
Motorola, Inc. McKesson HBOC, Inc.
Royal Dutch Petroleum Co. NY Networks Associates, Inc.
Shares Rite Aid Corp.
Solectron Corp. Saks, Inc.
Sprint Corp. Sara Lee Corp.
VERITAS Software Corp.
Yahoo!, Inc.
</TABLE>
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
During the period, U.S. corporations benefited from strong GDP growth, low
inflation, and improvement in international economies. Markets rallied around a
belief that technology, telecommunications, and the Internet would enhance
growth while limiting inflation. These developments added fuel to the bull
market in U.S. equities, but the threat of inflation and three Federal Reserve
interest rate hikes caused occasional volatility. Investors favored rapidly
growing cyclical and technology firms, while the stocks of steady growth
companies and interest rate-sensitive stocks struggled. In other areas, such as
the retail and energy sectors, many stocks performed well but were overshadowed
by gains in technology.
PORTFOLIO REVIEW
In this volatile but favorable environment, the portfolio produced solid
results. However, performance was muted somewhat because we generally hold fewer
cyclical, technology, and foreign stocks than some peers. Pharmaceuticals and
financials, two large sectors in this fund, posted more moderate performance.
Overall the portfolio produced a return of 19.88% versus the S&P 500 Index
return of 21.04%
Although the portfolio had less technology exposure than the average growth
fund, several tech holdings performed well. Among them, Microsoft was our best
performer for the year, followed by Oracle, America Online, and Sun
Microsystems. Limited investments directly in Internet companies generated
strong returns. Telecommunication stocks, including Corning and Nokia, were
valuable contributors to performance. Entertainment and media companies also did
well, as did several selected retailers, such as Wal-Mart and Home Depot.
On the other hand, several financial stocks weakened on rising interest rates,
while a number of holdings in supermarket chains and drugstores struggled
against Internet competition. Two holdings -- Waste Management and in the last
six months Tyco International -- did very poorly as investors questioned their
financials. We eliminated all but a minor portion of Waste Management, but we
think a SEC inquiry will not reveal major problems at Tyco, and maintain a
healthy position in the stock.
OUTLOOK
On balance, we believe that inflation and interest rates will increase but at a
manageable pace and corporate earnings among blue chips should remain strong.
Even so, we continue to recognize that almost all stocks are expensive by most
conventional measures, and more market volatility seems certain. Thus, careful
stock selection with a focus on valuation and sustainable growth should become
increasingly important.
VALUE OF $10,000 INVESTED MAY 1, 1996
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
S&P 500*** BLUE CHIP STOCK SERIES
<S> <C> <C>
5/1/96 10,000 10,000
96 11,504 11,624
97 15,342 14,763
98 19,727 18,906
99 23,877 22,664
BLUE CHIP STOCK SERIES
AVERAGE ANNUAL TOTAL RETURN*
1 YEAR SINCE MAY 1, 1996**
+19.88% +25.00%
</TABLE>
Annual period ended December 31
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of 500 common stocks
14
<PAGE>
PORTFOLIO DIVERSIFICATION BY COUNTRY AS OF 12/31/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Japan 25.5%
United Kingdom 21.4%
France 14.2%
Germany 10.1%
Other 6.1%
Spain 4.5%
Netherlands 4.0%
Switzerland 3.8%
Sweden 3.0%
Cash Equivalents/Recievables 2.6%
Italy 2.4%
Singapore 2.4%
</TABLE>
TOP 10 HOLDINGS AS OF 12/31/99
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Sony Corp. (Japan) 4.2%
2. Telefonica S.A. (Spain) 3.1%
3. NTT Mobile Communications Network, Inc. (Japan) 3.0%
4. Orix Corp. (Japan) 2.7%
5. Alcatel S.A. (France) 2.6%
6. Aventis S.A. (France) 2.5%
7. TDK Corp. (Japan) 2.3%
8. Siemens AG (Germany) 2.2%
9. Canon, Inc. (Japan) 2.1%
10. Broken Hill Proprietary Co. Ltd. (Australia) 2.0%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES
FOR THE PERIOD ENDED 12/31/99
<TABLE>
<S> <C>
ADDITIONS: ELIMINATIONS:
AstraZeneca plc Argentaria S.A.
Canon, Inc. Astra AB Class B
Deutsche Lufthansa AG Matsushita Electric Industrial
Halifax Group plc Co. Ltd.
KAO Corp. Nestle S.A.
Oversea-Chinese Banking Corp. Omron Corp.
Ltd. Ricoh Co. Ltd.
Portugal Telecom S.A. S.M.H. AG
Reed International plc SGS Societe Generale de
TDK Corp. Surveillance Holding S.A.
Tele Danmark A/S Unidanmark A/S Class A
Westpac Banking Corp. Ltd.
</TABLE>
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.
Despite considerable volatility, the MSCI EAFE Index ended the year up
approximately 27.30%. The Japanese equity market soared 60% as companies
continued reforms and the local economy began to show signs of recovery after a
decade of disappointment. Despite the weakness of the new euro, Europe also
posted solid gains as a wave of hostile bids and a growing equity culture pushed
markets 16% higher. The International Stock portfolio ended with a strong fourth
quarter and ended 1999 up 23.99% slightly trailing the MSCI EAFE Index.
The technology sector outperformed all other sectors in the S&P 500 Index. The
convergence of telecommunications and technology has not only reduced
interaction costs, but has broken down geographic and industry barriers to
facilitate a truly global economy. The pervasiveness of technology in business
and society was demonstrated this year by fears of the ramifications of a Y2K
software glitch. Although Y2K fears subsided, technology's incorporation in
business and accelerating IT spending highlighted continued growth potential.
Investors latched onto these themes to drive technology stocks and wireless
telecommunications stocks to exorbitant levels. Nokia was perfectly positioned
at the nexus of mobile communications and technology and its stock soared to
become the largest company in the MSCI EAFE Index. However, Nokia now trades at
a price to cash flow that is nearly impossible to defend on a fundamental basis.
Mergers and acquisitions compounded the extreme valuations and performance as
companies such as Vodafone used its highly valued stock to make the world's
largest ever hostile bid for the already expensive Mannnesmann. This performance
trend by technology and related companies accelerated in the fourth quarter and
even more acutely in December, which led the International Stock portfolio to
lose relative performance late in 1999.
The portfolio realized significant value in the technology sector through
investments in relatively less expensive companies. Telefonica and Portugal
Telecom both benefited tremendously from well-received IPO's. Alcatel made
several acquisitions to bolster its data networking equipment capabilities and
its stock price reacted favorably. But the best performer by far was NTT Mobile
Communications. The leading Japanese wireless communications company soared in
1999 on the back of the success of "i-mode", the first widely used WAP mobile
phone. The portfolio is benefiting from investments in companies not
traditionally linked to technology. Philips Electronics and Siemens are
transforming into technology-focused businesses.
The portfolio's investment style led us to invest in companies with strong
global brands. Valuations of many branded companies are now at historic lows,
yet their financial productivity remains outstanding. Although these moves hurt
relative performance this year, we are comfortable with the outlook for
companies such as Cadbury-Schweppes, Heineken, Diageo, and Unilever, given their
strong track record and return versus valuation characteristics. Combining
internally driven improvements with the potential for external growth if
emerging markets continue to rebound, branded companies are unlikely to remain
out of favor too much longer.
Dramatic change took place in the banking sector during 1999. Fuji Bank,
Industrial Bank of Japan (IBJ), and Dai-ichi Kangyo will create a single holding
company to form the world's largest bank with assets of $1.3 trillion.
Management hopes to form a "national champion" with sufficient size and power to
compete against American and European rivals. The ripple effect of the merger
led to further banking and insurance consolidation by year-end. In Europe,
Banque Nationale de Paris (BNP) tried to form a French banking powerhouse with a
combined hostile bid for both Societe Generale and Paribas. To date, most
banking consolidation has taken place within country borders where the greatest
cost savings exist. As banks reach sufficient domestic scale, we expect
cross-border mergers to accelerate as we have witnessed in numerous industries.
With this year's advent of the European Monetary Union (EMU) and Y2K concerns,
corporate change continued to accelerate on a global basis. The frenzied pace of
mergers and acquisitions topped $3.3 trillion worldwide, while restructuring,
disposals and spinoffs showed no signs of slowing. These corporate actions to
improve financial productivity and strategic positioning in a world of
heightening global competition remained the most enduring performance driver in
1999.
VALUE OF $10,000 INVESTED JANUARY 3, 1995***
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
MSCI EAFE** INTERNATIONAL STOCK SERIES
<S> <C> <C>
1/3/1995 10,000 10,000
95 11,155 11,435
96 11,865 13,038
97 12,109 14,601
98 14,572 17,006
99 18,550 21,087
INTERNATIONAL STOCK SERIES
AVERAGE ANNUAL TOTAL RETURN*
1 YEAR 5 YEAR
+23.99% +16.09
</TABLE>
Annual period ended December 31
Past performance is not indicative of future
performance. Investment return and principal value
will fluctuate so that shares, when redeemed, may
be worth more or less than their original cost.
This represents the performance of the Series
itself, without the expenses associated with the
variable annuities or variable universal life
insurance policies.
* SEC defined total returns, including
reinvestment of all dividend and capital
gains distributions.
** An unmanaged index of the stocks of Europe,
Australia, and the Far East.
*** Date shares were first offered to the public.
15
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY AS OF 12/31/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Capital Spending 37.2%
Finance 12.4%
Consumer Cyclical 10.9%
Health Care 10.3%
Basic Industry 9.3%
Energy & Related 6.7%
Utilities 6.6%
Consumer Staples 3.7%
Cash Equivalents/Receivables 2.9%
</TABLE>
TOP 10 HOLDINGS AS OF 12/31/99
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. VERITAS Software Corp. 2.7%
2. Maxim Integrated Products, Inc. 2.4%
3. Biogen, Inc. 2.3%
4. MedImmune, Inc. 1.9%
5. Altera Corp. 1.7%
6. Sanmina Corp. 1.3%
7. Check Point Software Technologies Ltd. 1.3%
8. Sabre Group Holdings, Inc. 1.3%
9. Vitesse Semiconductor Corp. 1.3%
10. VeriSign, Inc. 1.2%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES
FOR THE PERIOD ENDED 12/31/99
<TABLE>
<S> <C>
ADDITIONS: ELIMINATIONS:
Allergan, Inc. AFLAC, Inc.
Check Point Software Best Buy Co., Inc.
Technologies Ltd. IPALCO Enterprises, Inc.
Chiron Corp. Networks Associates, Inc.
Convergys Corp. Old Kent Financial Corp.
Jabil Circuit, Inc. Regions Financial Corp.
MedImmune, Inc. Scana Corp.
Redback Networks, Inc. STERIS Corp.
Transocean Sedco Forex, Inc. Tellabs, Inc.
VeriSign, Inc. Watson Pharmaceuticals, Inc.
Vitesse Semiconductor Corp.
</TABLE>
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.
PERFORMANCE REVIEW
For the year ended December 31, 1999, the performance of the Mid Cap Stock
portfolio was 10.97%, which was below the S&P Mid Cap 400 Index return of
14.70%. While the absolute return in the 4th quarter was 14.76%, we are
nonetheless disappointed that we did not exceed the performance benchmark during
the period under review.
The quantitative process that we use in managing this portfolio performed below
its historical trend throughout 1999. Our valuation process uses a number of
fundamental characteristics that are both price (value) and earnings (growth)
sensitive, while in portfolio construction we follow a sector neutral approach.
We feel that during most of 1999 we operated in a market environment where
investors paid little attention to traditional measures of value such as price,
price/earnings, and actual earnings growth.
Companies with the highest price multiples and in many cases very modest real
earnings provided the most attractive returns during 1999. Our process uses long
term trends to guide our stock selections, and thus we continued to operate with
some sensitivity to issues such as actual earnings. This process did not
preclude us from owning any of these types of issues, and in fact we owned a
number of holdings that had total returns during the 4th quarter of over 50%.
These issues include Verisign +258.6%, Medimmune +66.4%, Young & Rubicam +60.9%,
and Legato Systems +57.8%. 1999 was also an equity market environment where we
saw a concentration of performance in certain sectors (technology). According to
our calculation, if one looks at the make-up of the S&P Mid Cap 400 Index at
year-end, over 60% of those companies had a negative return for 1999. Thus, both
our valuation process and portfolio construction techniques were subject to less
than favorable market conditions.
INVESTMENT PROCESS
Dreyfus employs its disciplined investment process in the management of the Mid
Cap Stock Series. The portfolio is constructed in line with our mid cap strategy
which seeks to outperform the S&P 400 Mid Cap Index through stock selection
while closely managing the portfolio's risk characteristics versus the
benchmark. Dreyfus' stock selection involves a dynamic valuation process using
15 broad based fundamental factors. These include both earnings (growth like)
oriented and price (value like) oriented factors which are dynamically weighted
to capture the characteristics the market prefers in the current environment.
Stocks are selected based upon their exposures to the characteristics that are
preferred. As of December 31, the process 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 Mid Cap Index to protect against unintended industry bets. BARRA risk tools
help us determine other factors driving portfolio risk, and we manage these risk
factors versus the benchmark. The portfolio held 147 names, broadly diversified
across all economic sectors.
VALUE OF $10,000 INVESTED MAY 1, 1998
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
S&P 400 MID CAP*** MID CAP STOCK SERIES
<S> <C> <C>
5/1/98 $10,000 $10,000
98 $10,536 $9,711
99 $12,094 $10,776
MID CAP STOCK SERIES
AVERAGE ANNUAL TOTAL RETURN*
1 YEAR SINCE MAY 1, 1998**
+10.97% +4.58%
</TABLE>
Annual period ended December 31
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of common stocks that measures the performance of the
mid-range sector of the U.S. stock market.
16
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY AS OF 12/31/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 39.3%
Banks 11.6%
Real Estate-Investment Trust 10.9%
Computer-Software 6.0%
Oil and Gas Field Services 6.0%
Insurance 5.2%
Business Services 5.1%
Construction 4.4%
Machinery-Specialty 4.4%
Savings And Loans, Mortgage Companies 3.6%
Medical Supplies 3.1%
Cash Equivalents/Receivables 0.4%
</TABLE>
TOP 10 HOLDINGS AS OF 12/31/99
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Interim Services, Inc. 3.5%
2. Federal Signal Corp. 3.1%
3. CCB Financial Group 2.8%
4. Webster Financial Corp. 2.7%
5. Payless ShoeSource, Inc. 2.5%
6. Pittway Corp. Class A 2.5%
7. Wolverine World Wide, Inc. 2.5%
8. Jostens, Inc. 2.4%
9. Computer Horizons Corp. 2.2%
10. Key Energy Services, Inc. 2.1%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES
FOR THE PERIOD ENDED 12/31/99
ADDITIONS: ELIMINATIONS:
A. Schulman, Inc. BJ Services, Co. (Warrants)
Computer Horizons, Corp. Cognex Corp.
Home Properties of First Sentinel Bancorp, Inc.
New York, Inc. GBC Bancorp
JDA Software Group, Inc. Georgia-Pacific Corp. (Timber
Keystone Financial, Inc. Group)
Old Republic International Jones Intercable, Inc. Class A
Corp. Just for Feet, Inc.
Omnicare, Inc. Nautica Enterprises, Inc.
Peoples Heritage Financial Speedfam, Inc.
Group St. Paul Bancorp, Inc.
Pittway Corp. Class A
Rayonier, Inc.
FORTIS SERIES FUND: SMALL CAP VALUE SERIES
(SUBADVISED BY BERGER)
THIS PORTFOLIO IS DESIGNED FOR AGGRESSIVE INVESTORS WHO WANT TO INVEST IN SMALL
COMPANY STOCKS THAT THE PORTFOLIO MANAGERS BELIEVE ARE SIGNIFICANTLY
"UNDERVALUED".
For the year ended December 31, 1999, the portfolio had a return of 15.34%
versus a return of 21.36% for the Russell 2000 Index. The portfolio benefited
from the announced mergers of Pittway and Jostens for premiums of 50% and 25%,
respectively. We feel that mergers will continue to increase as corporate
America recognizes the opportunity creates by the two-tier market and resulting
historic low valuations.
During the fourth quarter of 1999 and over the entire year, our strongest
performance came from our fallen growth stocks. Growth companies can become
value situations when they sell at depressed prices relative to their secular
growth. These companies are exceedingly strong financially and are showing
confidence in their future by buying their own stock. Specifically, the
portfolio has accumulated positions in information technology staffing companies
that declined over 70% from their highs due to near-term earnings concerns about
their transition from Y2K solutions to e-commerce strategies.
We are particularly encouraged that our gain for the year was accomplished in
spite of an overweighting in the weakest market sector, financials. There are
clear signs of strength in this sector. Bank and thrift earnings were up 8%-10%
in 1999, and are expected to be up as much in 2000. There have been aggressive
stock buy backs and dividend increases. Consolidation continues and is expected
to accelerate in 2000.
In the REIT industry, there were cash flow gains of 10%-20% in 1999 and those
are expected to grow 10% in 2000. After the 12% decline in the group, dividend
yields are now in the 8%-10% range, significantly higher than the 6.5% return on
10-year Treasuries. (REIT returns tend to be on par with Treasuries.) These
extremely attractive values give us confidence in the future risk reward ratio
of our portfolio.
The last three months of 1999 saw a continuation of the underperformance of the
small cap value sector compared to the broader market. While we await the return
of capital into the small cap arena, we will pursue our value discipline and
position the portfolio to take advantage of the market's currently elusive, but
we believe ultimately inevitable recognition of value.
VALUE OF $10,000 INVESTED MAY 1, 1998
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
SMALL CAP VALUE SERIES RUSSELL 2000***
<S> <C> <C>
5/1/1998 $10,000 $10,000
98 $9,452 $8,814
99 $10,901 $10,696
SMALL CAP VALUE SERIES
AVERAGE ANNUAL TOTAL RETURN*
1 YEAR SINCE MAY 2, 1998**
+15.34% +5.31%
</TABLE>
Annual period ended December 31
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of common stocks of the smallest 2000 companies in the
Russell 3000 Index, which represents approximately 11% of the Russell 3000
Index.
17
<PAGE>
PORTFOLIO DIVERSIFICATION BY COUNTRY AS OF 12/31/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
United States 37.8%
Japan 25.6%
Other 8.0%
United Kingdom 5.8%
Receivables/Cash Equivalents 3.9%
Finland 3.4%
Spain 3.1%
Germany 2.7%
Netherlands 2.6%
France 2.5%
Sweden 2.4%
Israel 2.2%
</TABLE>
TOP 10 HOLDINGS AS OF 12/31/99
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Nokia Oyj (Finland) 3.4%
2. Trend Micro, Inc. (Japan) 3.3%
3. Orange plc (United Kingdom) 3.3%
4. PE Corp-PE Biosystems Group (US) 3.2%
5. Hikari Tsushin, Inc. (Japan) 3.2%
6. Cisco Systems, Inc. (US) 2.9%
7. Advantest Corp. (Japan) 2.6%
8. Tellabs, Inc. (US) 2.4%
9. Telefonica S.A. ADR (Spain) 2.4%
10. Ericsson (L.M.) Telephone Co. Class B ADR (Sweden) 2.3%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES
FOR THE PERIOD ENDED 12/31/99
<TABLE>
<S> <C>
ADDITIONS: ELIMINATIONS:
Agile Software Corp. 3Com Corp.
Hikari Tsushin, Inc. Barco N.V.
LTX Corp. Covance, Inc.
Murata Manufacturing Co. Ltd. KCI Konecranes International
NEC Corp. plc
Nintendo Co. Ltd. MOL Magyar Olaj-es Gazipari
Orix Corp. Rt. GDR
Sunkus & Associates, Inc. Networks Associates, Inc.
Tandy Corp. (with rights) Novartis AG
Trend Micro, Inc. Sanofi-Synthelabo S.A.
Total Renal Care Holdings,
Inc.
Wolters Kluwer N.V.
</TABLE>
FORTIS SERIES FUND: GLOBAL GROWTH SERIES
GROWTH INVESTORS WHO WANT TO DIVERSIFY AND EXPAND THEIR HORIZONS BEYOND THE
UNITED STATES MAY WANT TO CONSIDER THIS DIVERSIFIED PORTFOLIO.
During the twelve month period ended December 31, 1999, the Global Growth Series
portfolio returned 57.68%. Over the same period, the Morgan Stanley Capital
International World Index returned 25.34%. The majority of the gains occurred in
the second half of 1999 when the world equity markets increased their focus on
companies with strong growth prospects, particularly those involved in
technology products and services. The Global Growth Series portfolio has
historically invested in companies with above average earnings growth anywhere
in the world, including the United States. The portfolio's overweight exposure
to growth-oriented companies in Japan also played a contributing factor in the
strong relative outperformance.
The outlook for the world's economy has improved quite dramatically relative to
a year ago. We are presently in a synchronized global economic recovery.
Countries which have been in recessions over the past several years such as
Japan, Germany, France, and Korea are now demonstrating economic growth. This
represents the first time since 1994 when all of the world's major economies
were demonstrating positive growth. The outlook for the world's equity market
has also improved dramatically since one year ago. Many U.S. based companies are
benefiting from worldwide demand for products utilizing the latest technologies.
An improved global economy will result in strong demand for technology based
capital equipment. Areas such as wireless telephones, broadband cable systems,
high speed internet access, and telecommunications systems will prosper in the
"new global economy". Factors influencing overseas holdings will be the
continuation of the trend towards corporate restructurings. There are
significant changes taking place in Japan which deal with cultural and
management issues at major Japanese corporations. This renewed focus on cost
cutting and increasing earnings growth will be a positive for investors in those
companies. The other major change is the emergence of the "new economy" in
Japan. Companies involved in business services and internet technology are
beginning to make inroads in the corporate landscape. The major uncertainty
looking forward will be what impact the synchronized global recovery has on
inflation. In recent years, the recession in Asia and Japan has helped keep
global prices for commodities and consumer goods at low levels. With an
improving global economy, it is likely that inflationary pressures will
increase. This could create some uncertainty regarding interest rate policies
around the world and, therefore, a more volatile outlook for equity markets.
Today, inflation remains at a low level globally. We are confident that the
central banks of the world, led by the Federal Reserve Bank, will be able to
control inflationary pressures through the proper monetary actions. This should
give financial markets confidence in the long term outlook for companies with
well above average growth prospects.
The longer-term outlook for investing in global equities remains favorable. The
world has embraced capitalism, and nations in Europe and Japan are becoming more
shareholder aware each year. These are long term trends, which should reward
shareholders. The other major factor is the proliferation of technology capital
investment on a global basis. Japan, Europe, and Southeast Asia have embraced
the concept of investing in high technology in order to prosper economically. We
continue to have an above average exposure to technology related investments as
this is the key global growth area of the future. There will continue to be
volatility in the world's equity markets, however, over the long term we remain
confident that an investment focus on rapidly growing companies will be
rewarded.
VALUE OF $10,000 INVESTED MAY 1, 1992
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
MSCI WORLD GLOBAL GROWTH SERIES
INDEX***
<S> <C> <C>
5/1/92 10,000 10,000
92 10,223 11,088
93 12,588 13,075
94 13,291 12,685
95 16,124 16,553
96 18,381 19,715
97 21,363 21,059
98 26,660 23,451
99 33,416 36,978
GLOBAL GROWTH SERIES
AVERAGE ANNUAL TOTAL RETURN*
1 YEAR 5 YEAR SINCE MAY 1, 1992**
+57.68% +23.86% +18.60%
</TABLE>
Annual period ended December 31
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of the world's major equity markets in U.S. dollars,
weighted by stock market value.
18
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY AS OF 12/31/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 34.3%
Financial Services 15.3%
Drugs 9.1%
Computer-Hardware 8.3%
Retail-Specialty 6.9%
Computer-Software 5.5%
Telecommunications Equipment 5.0%
Diversified Companies 3.6%
Electronic-Semiconductor 3.4%
Cable Television 3.0%
Cash Equivalents/Receivables 2.8%
Computer-Communication Equipment 2.8%
</TABLE>
TOP 10 HOLDINGS AS OF 12/31/99
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Dell Computer Corp. 5.7%
2. Nokia Corp. ADR 5.0%
3. Microsoft Corp. 3.9%
4. Tyco International Ltd. 3.6%
5. Associates First Capital Corp. Class A 3.5%
6. Morgan Stanley Dean Witter & Co. 3.5%
7. Intel Corp. 3.4%
8. Home Depot, Inc. 3.3%
9. Schering-Plough Corp. 3.2%
10. MediaOne Group, Inc. 3.0%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES
FOR THE PERIOD ENDED 12/31/99
<TABLE>
<S> <C>
ADDITIONS: ELIMINATIONS:
America Online, Inc. Dayton Hudson Corp.
Applied Materials, Inc. Fifth Third Bancorp
C.I.T. Group, Inc. KLM Royal Dutch Air Lines N.V.
Costco Wholesale Corp. Mckesson HBOC, Inc.
Gap, Inc. Merck & Co., Inc.
Honeywell International, Inc. Northwest Airlines Corp.
Masco Corp. Progressive Corp. (The)
MediaOne Group, Inc. Rite Aid Corp.
Sprint Corp. Walt Disney Co.
Time Warner, Inc. Washington Mutual, Inc.
</TABLE>
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.
1999 REVIEW
We are pleased to report that for the calendar year ending December 31, 1999,
the portfolio returned 27.22% outperforming the S&P 500 Index return of 21.04%.
The Series' outperformance compared to the Index was driven by excellent stock
selection across several industry groups. Mirroring the fourth quarter,
technology, communication services and media stocks were among the best
performing for the year. Double-digit earnings growth fueled by the convergence
of cable, telecom, computer and Internet technologies drove the stock prices of
these companies. For the year, retail stocks generally outperformed, as consumer
spending remained strong. Several cyclical stocks, particularly paper and
non-ferrous metals companies, realized strong gains during 1999. Cyclical stocks
rallied due to the expectation that a recovery in the troubled Asian economies
and accelerating global economic growth will lead to increased demand for basic
materials and commodities in the coming year.
Financial and pharmaceutical stocks generally lagged the overall market in 1999.
Financials came under pressure as the year progressed. Investors worried that if
the Federal Reserve continues to increase interest rates to slow the economy and
forestall higher inflation, the earnings of financial companies would be
adversely impacted. Pharmaceutical stocks suffered losses in 1999 due to
investors' concerns about decelerating earnings growth, the relative sparseness
of new product launches and the potential reform of Medicare.
Our investment approach is to hold fairly concentrated positions in the top
twenty-five stocks, which typically represent 65-75% of the total market value
of the portfolio. We research these companies thoroughly and then trade around
these core positions taking advantage of market and individual stock volatility.
Stock selection accounts for two-thirds of the outperformance, while
intra-period trading around the core positions accounts for the remaining
one-third of the outperformance. At year-end, the five largest holdings in the
portfolio were Dell Computer, Microsoft, Associates First Capital Corp., Nokia,
and Tyco.
OUTLOOK
Looking ahead, we believe that economic growth in the United States will remain
robust. Years of restructuring and capital investment, including massive
investments in information technology systems, have positioned U.S. companies to
be highly efficient in manufacturing and distribution and demonstrate
technological leadership. While the strong economic growth experienced in the
U.S. has come with little to no inflation during the last several years, bond
yields in the U.S. have increased in anticipation that the Federal Reserve will
continue to raise interest rates to modestly slow economic growth and dampen
inflation. This combination of higher interest rates and historically high
valuations, particularly for technology and other high multiple stocks that
investors have continued to favor at any price, will likely lead to more market
volatility during 2000. In a volatile market, we expect to add value to the
market's return as we have traditionally through individual stock selection and
active intra-period trading.
The portfolio remains broadly diversified, balancing our positive view of the
fundamentals with a caution on the valuations. We continue to view the industry
dominant, high growth companies in the portfolio that are growing their earnings
on average 20% as attractive. While technology, communication services, and
retail will continue to be areas of emphasis, we will also look to financials,
consumer staples and pharmaceuticals were valuations are generally more
attractive and returns have lagged the market. In addition, we will look
selectively at industrial and basic materials companies that we believe may
benefit from accelerating world economic growth. In each industry sector, we
will focus on those premier companies with strong earnings growth, exceptional
management and market dominance.
We look forward to the year 2000 with an enormous sense of excitement regarding
the technological changes around us. We are eager to face the challenge of
trying to keep the portfolio optimally structured for success based on the
marriage of our fundamental analysis and price considerations--a management
creed we have successfully followed for the last two decades.
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>
5/1/98 10,000 10,000
98 11,171 11,861
99 13,522 15,090
LARGE CAP GROWTH SERIES
AVERAGE ANNUAL TOTAL RETURN*
1 YEAR SINCE MAY 1, 1998**
+27.22% +27.97%
</TABLE>
Annual period ended December 31
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of 500 common stocks
19
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY
AS OF 12/31/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 28.0%
Computer-Software 24.1%
Electronic-Semiconductor and Capacitor 6.8%
Drugs 6.0%
Telecommunication Equipment 5.5%
Cash Equivalents/Receivables 5.5%
Broadcasting 5.2%
Advertising-Public Relations 4.6%
Electronic-Components and Parts 4.0%
Business Services 3.9%
Oil-Offshore Drilling 3.5%
Telecommunications 2.9%
</TABLE>
TOP 10 HOLDINGS AS OF 12/31/99
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. VeriSign, Inc. 2.7%
2. SDL, Inc. 2.2%
3. MedImmune, Inc. 2.1%
4. Young & Rubicam, Inc. 2.0%
5. Univision Communications, Inc. Class A 2.0%
6. Peregrine Systems, Inc. 2.0%
7. Celestica, Inc. 1.9%
8. i2 Technologies, Inc. 1.7%
9. Calpine Corp. 1.7%
10. Portal Software, Inc. 1.6%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES
FOR THE PERIOD ENDED 12/31/99
<TABLE>
<S> <C>
ADDITIONS: ELIMINATIONS:
Calpine Corp. Affiliated Computer Services, Inc.
Celestica, Inc. Capital One Financial Corp.
i2 Technologies, Inc. CenturyTel, Inc.
Intertrust Technologies Corp. Cisco Systems, Inc.
PE Corp-PE Biosystems Group MCI WorldCom, Inc.
Peregrine Systems, Inc. Medtronic, Inc.
Portal Software, Inc. Solectron Corp.
QUALCOMM, Inc. Staples, Inc.
SDL, Inc. Starbucks Corp.
VeriSign, Inc. Suiza Foods Corp.
</TABLE>
FORTIS SERIES FUND: GROWTH STOCK SERIES
THIS PORTFOLIO IS DESIGNED FOR INVESTORS WHO SEEK TO INVEST IN MEDIUM-SIZED
GROWTH COMPANIES THAT HAVE MOVED BEYOND THE VENTURE STAGE.
During the 12 month period ended December 31, 1999, the Growth Stock Series
posted a 55.17% return versus the S&P Mid Cap 400 which posted a 14.70% return.
This index is the most relevant comparison for the Growth Stock Series, as the
portfolio's primary investment focus is mid capitalization stocks, typically
those with a market capitalization between $1 billion and $8 billion.
During the period under review the portfolio's outperformance was attributable
to its overweight position in technology stocks which significantly outperformed
during the fourth quarter of the year. The Morgan Stanley High Technology index
posted a 49% return in the fourth quarter vs. a 15.9% return for the S&P Mid Cap
400. During the past 12 months the fund benefited from holdings such as Siebel
Systems +250%, Univision Communications +240%, and BEA Systems +495%. The
portfolio currently has a slight overweight position in technology, where we
continue to find new and innovative companies especially in telecommunications
and business-to-business e-commerce. Stocks such as SDL Inc, which supplies
optical components for telecommunication networks and Peregrine Systems, which
offers infrastructure management software, are two stocks we currently favor.
Additionally, we see the recent rebound in energy prices as a positive catalyst
for many of the mid cap energy stocks. Within energy we favor BJ Services, which
is a global oil service company and Nabors Industries, which is engaged in land
drilling for oil and gas. We continue to maintain a market weighting in health
care favoring names such as Biovail and Medimune. Lastly, we continue to
underweight consumer cyclical and financial stocks.
Going forward, we expect steady domestic economic growth, moderate inflation,
and a stable to moderate interest rate environment 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 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. We believe the portfolio is well positioned going forward.
VALUE OF $10,000 INVESTED JANUARY 1, 1990
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
S&P 500** S&P 400*** GROWTH STOCK SERIES
<S> <C> <C> <C>
1/1/90 10,000 10,000 10,000
90 9,683 9,193 9,690
91 12,641 13,476 14,874
92 13,610 14,759 15,312
93 14,970 16,810 16,657
94 15,166 16,206 16,187
95 20,842 21,218 20,665
96 25,651 25,295 24,058
97 34,209 33,449 27,047
98 43,987 39,834 32,190
99 53,242 45,692 49,948
GROWTH STOCK SERIES
AVERAGE ANNUAL TOTAL RETURN*
1 YEAR 5 YEAR 10 YEAR
+55.17% +25.28% +17.45%
</TABLE>
Annual period ended December 31
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** An unmanaged index of 500 common stocks.
*** An unmanaged 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.
20
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY
AS OF 12/31/99
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 21.6%
Computer-Software 19.3%
Business Services 13.3%
Cash Equivalents/Receivables 8.5%
Electronic-Semiconductor 6.6%
Drugs 5.5%
Telecommunication Equipment 5.1%
Biomedics, Genetics Research and Development 4.9%
Electronic Components 4.8%
Broadcasting 3.9%
Telecommunications 3.5%
Medical Supplies 3.0%
</TABLE>
TOP 10 HOLDINGS AS OF 12/31/99
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
<C> <S> <C>
1. Arthocare Corp. 2.0%
2. Art Technology Group, Inc. 1.7%
3. Proxicom, Inc. 1.7%
4. Business Objects S.A. ADR 1.6%
5. TriQuint Semiconductor, Inc. 1.6%
6. Abgenix, Inc. 1.6%
7. WebTrends Corp. 1.5%
8. Open Market, Inc. 1.5%
9. Emulex Corp. 1.5%
10. Ortel Corp. 1.4%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES
FOR THE PERIOD ENDED 12/31/99
<TABLE>
<S> <C>
ADDITIONS: ELIMINATIONS:
Abgenix, Inc. Flextronics
Art Technology Group, Inc. International Ltd.
Arthocare Corp. Incyte Pharmaceuticals, Inc.
Emulex Corp. J. Jill Group, Inc.
iXL Enterprises, Inc. Jabil Circuit, Inc.
Open Market, Inc. Level One
Ortel Corp. Communications, Inc.
Proxicom, Inc. Medicis Pharmaceutical Corp.
TriQuint Semiconductor, Inc. Class A
WebTrends Corp. Metzler Group, Inc.
Network Appliance, Inc.
New Era of Networks, Inc.
Sylvan Learning Systems, Inc.
</TABLE>
FORTIS SERIES FUND: AGGRESSIVE GROWTH SERIES
THIS PORTFOLIO IS DESIGNED ESPECIALLY FOR THE MOST AGGRESSIVE INVESTOR WHO
WISHES TO INVEST IN SMALLER, EMERGING GROWTH COMPANIES.
During the 12 month period ended December 31, 1999, the portfolio significantly
outperformed both the Russell 2000 and the Russell 2000 Growth indices -- the
widely used benchmark for small capitalization portfolios. The portfolio posted
an 109.25% return during the period versus a 21.36% return for the Russell 2000
Index.
1999 was an extremely good year for small cap stocks, the Russell 2000
outperformed both the Russell 1000 and the S&P 500. Additionally, throughout
much of the year, growth as an investment style outperformed value. The Russell
2000 Growth Index posted a 43.09% return vs. a -1.48% return for the Russell
2000 Value Index.
The outperformance of the portfolio vs. its benchmark is attributable to
superior stock selection, especially in technology. Emulex Corp, a designer,
developer and supplier of fiber channel host adapters and hubs up 229%, Business
Objects, a decision support software company up 303% and Applied Micro Circuits,
a semiconductor company, which supplies to the telecommunications sector, up
335%. The portfolio also benefited from overweight positions in healthcare, and
broadcasting. In addition, the portfolio's performance was enhanced by its
investments in Initial Public Offerings.
We continue to favor technology stocks especially business-to-business
e-commerce companies, and internet infrastructure companies such as Art
Technology Group and Micromuse Inc. In healthcare we favor companies such as
Arthrocare Corp, an emerging orthopedic company and Abgenix Inc, a leading
biopharmaceutical company focused on antibody therapies. Finally, we expect
increased advertising spending from emerging business-to-consumer internet
companies and strong political advertisement spending to be a supportive
backdrop for radio broadcasting companies such as Emmis Communications.
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 the portfolio is positioned to continue to outperform going
forward.
VALUE OF $10,000 INVESTED MAY 2, 1994
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
S&P 500*** AGGRESSIVE GROWTH SERIES RUSSELL 2000****
<S> <C> <C> <C>
5/2/94 10,000 10,000 10,000
94 10,397 9,811 10,126
95 14,289 12,743 13,006
96 17,586 13,718 15,157
97 23,453 13,913 18,529
98 30,157 16,858 18,113
99 36,502 35,277 21,982
AGGRESSIVE GROWTH SERIES
AVERAGE ANNUAL TOTAL RETURN*
1 YEAR 5 YEAR SINCE MAY 2, 1994**
+109.25% +29.17% +24.92%
</TABLE>
Annual period ended December 31
Past performance is not indicative of future performance. Investment return
and principal value will fluctuate so that shares, when redeemed, may be
worth more or less than their original cost. This represents the performance
of the Series itself, without the expenses associated with the variable
annuities or variable universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of 500 common stocks
**** 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.
21
<PAGE>
FORTIS SERIES FUND, INC.
MONEY MARKET SERIES
Schedule of Investments
December 31, 1999
SHORT-TERM INVESTMENTS - 99.98%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's
Principal Maturity Rating
Amount Yield Date (Unaudited) Value (a)
- ----------- ----------- ----------- ----------- ------------
<C> <S> <C> <C> <C> <C>
BANKS-24.71%
$4,000,000 Banc One Corp............................................... 5.90% 02/04/00 A1 $ 3,977,600
4,300,000 Bank of America Corp........................................ 5.93% 02/01/00 A1 4,278,213
4,000,000 Deutsche Bank Financial..................................... 6.04% 02/02/00 A1 3,978,587
3,000,000 First Union National Bank (d)............................... 5.69% 05/17/00 A+ 3,000,000
5,000,000 Toronto Dominion Holding.................................... 6.10% 02/25/00 A1+ 4,953,683
6,019,020 U.S. Bank N.A. Money Market Variable Rate Time Deposit...... 5.30% 01/01/00 A1+ 6,019,020
4,500,000 Wells Fargo & Co............................................ 5.98% 02/29/00 A1 4,456,425
------------
30,663,528
------------
BROKERAGE AND INVESTMENT-6.11%
4,600,000 Merrill Lynch & Co.......................................... 6.12% 01/26/00 A1+ 4,580,266
3,000,000 Morgan Stanley Dean Witter (d).............................. 5.80% 02/22/00 A1 3,000,000
------------
7,580,266
------------
CAPTIVE AUTO FINANCE-10.25%
4,200,000 DaimlerChrysler North America Holding....................... 6.18% 02/15/00 A1 4,167,961
4,300,000 Ford Motor Credit Co........................................ 6.12% 01/21/00 A1 4,285,101
4,300,000 General Motors Acceptance Corp.............................. 6.13% 02/11/00 A1 4,270,251
------------
12,723,313
------------
CAPTIVE EQUIPMENT FINANCE-7.93%
1,100,000 IBM Credit Corp............................................. 6.20% 01/12/00 A1 1,097,763
4,100,000 IBM Credit Corp............................................. 5.91% 01/27/00 A1 4,082,473
4,700,000 John Deere Capital Corp..................................... 6.05% 02/17/00 A1 4,663,027
------------
9,843,263
------------
CAPTIVE OIL FINANCE-4.01%
5,000,000 Chevron USA, Inc............................................ 6.02% 01/28/00 A1 4,977,133
------------
CONSUMER FINANCE-10.41%
4,500,000 American Express Credit Corp................................ 6.13% 01/25/00 A1 4,481,375
4,500,000 American General Finance Corp............................... 5.94% 03/10/00 A1 4,449,688
4,000,000 Household Finance Corp...................................... 5.92% 01/19/00 A1 3,987,924
------------
12,918,987
------------
DIVERSIFIED FINANCE-15.68%
5,999,000 Associates Corp. Master Variable Rate Note.................. 5.01% 01/01/00 A1+ 5,999,000
4,600,000 CIT Group, Inc.............................................. 5.93% 01/11/00 A1 4,591,848
4,700,000 General Electric Capital Corp............................... 5.99% 01/25/00 A1 4,680,939
4,200,000 Prudential Funding Corp..................................... 6.08% 01/20/00 A1 4,186,233
------------
19,458,020
------------
FOOD-3.21%
4,000,000 Kellogg Co.................................................. 5.86% 02/01/00 A1 3,979,911
------------
INDUSTRIAL-2.90%
3,600,000 Xerox Credit Corp........................................... 5.05% 01/07/00 A1 3,596,640
------------
OIL-REFINING-3.37%
4,200,000 Texaco, Inc................................................. 5.93% 01/24/00 A1 4,183,956
------------
UTILITIES-ELECTRIC-11.40%
4,200,000 CSW Credit, Inc............................................. 6.06% 01/14/00 A1+ 4,190,396
5,000,000 Duke Energy Corp............................................ 5.93% 01/10/00 A1 4,991,917
5,000,000 South Carolina Fuel Co. (e)................................. 6.59% 01/31/00 A1 4,972,229
------------
14,154,542
------------
TOTAL INVESTMENTS IN SECURITIES (COST: $124,079,559) (b).... $124,079,559
============
</TABLE>
(a) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(b) Also represents cost for federal income tax purposes.
(c) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets.
(d) Variable Rate Securities; the yield reported is the rate in effect as of
December 31, 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". This security has been determined to be liquid
under the guidelines established by the Board of Directors. The aggregate
value of this security at December 31, 1999, was $4,972,229, which
represents 4.01% of total net assets.
22
<PAGE>
FORTIS SERIES FUND, INC.
U.S. GOVERNMENT SECURITIES SERIES
Schedule of Investments
December 31, 1999
U.S. GOVERNMENT SECURITIES-93.70%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Cost (a) Value (b)
- ----------- -------------- ------------
<C> <S> <C> <C>
FEDERAL HOME LOAN MORTGAGE CORPORATION - 15.24%
NOTES:
$3,725,000 5.00% 2004.................................................. $ 3,532,918 $ 3,483,397
18,710,000 5.75% 2003-2008............................................. 17,917,907 17,643,475
-------------- ------------
TOTAL FEDERAL HOME LOAN MORTGAGE CORPORATION................ 21,450,825 21,126,872
-------------- ------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 35.99%
MORTGAGE BACKED SECURITIES:
1,285,702 5.835% 2008................................................. 1,299,662 1,168,112
18,310,624 6.00% 2013-2029............................................. 17,809,075 17,163,232
991,186 6.01% 2009.................................................. 1,009,788 909,559
1,914,048 6.20% 2006.................................................. 1,919,677 1,821,634
779,918 6.36% 2008.................................................. 778,855 736,841
1,812,065 6.48% 2008.................................................. 1,827,533 1,724,706
17,297,838 6.50% 2013-2029 (e)......................................... 16,995,727 16,430,670
735,193 6.54% 2007.................................................. 746,835 702,113
1,293,524 6.63% 2005.................................................. 1,324,609 1,256,745
5,751,619 7.00% 2003-2029............................................. 5,671,997 5,584,852
1,755,308 7.50% 2023.................................................. 1,806,321 1,736,923
110,030 8.50% 2017.................................................. 112,401 112,854
73,908 9.00% 2020-2021............................................. 73,766 76,972
454,921 9.75% 2020.................................................. 490,746 480,842
-------------- ------------
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION................. 51,866,992 49,906,055
-------------- ------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 5.32%
MORTGAGE BACKED SECURITIES:
5,013,789 7.50% 2027.................................................. 5,046,663 4,961,560
1,007,640 9.00% 2020.................................................. 1,055,503 1,054,768
1,276,849 9.50% 2018-2021............................................. 1,322,489 1,351,597
-------------- ------------
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION.............. 7,424,655 7,367,925
-------------- ------------
OTHER DIRECT FEDERAL OBLIGATIONS - 16.21%
FEDERAL HOME LOAN BANK:
7,895,000 7.31% 2004.................................................. 7,910,128 8,025,575
-------------- ------------
TENNESSEE VALLEY AUTHORITY:
15,000,000 6.375% 2005................................................. 14,542,015 14,455,020
-------------- ------------
TOTAL OTHER DIRECT FEDERAL OBLIGATIONS...................... 22,452,143 22,480,595
-------------- ------------
OTHER GOVERNMENT AGENCIES - 2.39%
RESOLUTION FUNDING CORPORATION:
9,000,000 7.96% 2014 Zero Coupon Strip (d)............................ 2,955,754 3,315,231
-------------- ------------
U.S. TREASURY SECURITIES - 18.55%
BONDS:
3,035,000 6.63% 2018 Zero Coupon Strip (d)............................ 886,758 844,030
500,000 5.25% 2029.................................................. 437,297 413,594
4,590,000 8.125% 2021................................................. 5,928,974 5,262,724
-------------- ------------
7,253,029 6,520,348
-------------- ------------
NOTES:
3,184,710 3.375% 2007 Inflation-protection (f)........................ 3,018,310 3,001,589
9,450,000 5.50% 2003.................................................. 9,318,413 9,196,031
</TABLE>
23
<PAGE>
FORTIS SERIES FUND, INC.
U.S. GOVERNMENT SECURITIES SERIES (CONTINUED)
Schedule of Investments
December 31, 1999
U.S. GOVERNMENT SECURITIES-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Cost (a) Value (b)
- ----------- -------------- ------------
<C> <S> <C> <C>
$7,150,000 6.125% 2001-2007............................................ $ 7,182,373 $ 7,003,707
-------------- ------------
19,519,096 19,201,327
-------------- ------------
TOTAL U.S. TREASURY SECURITIES.............................. 26,772,125 25,721,675
-------------- ------------
TOTAL U.S. GOVERNMENT SECURITIES............................ 132,922,494 129,918,353
============== ============
$ 132,922,494 $129,918,353
============== ============
</TABLE>
SHORT-TERM INVESTMENTS-7.31%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (b)
- ----------- ------------
<C> <S> <C>
BANKS-4.06%
$5,635,738 U.S. Bank N.A. Money Market Variable Rate Time Deposit,
Current rate -- 5.30%..................................... $ 5,635,738
------------
DIVERSIFIED FINANCE-3.25%
4,508,000 Associates Corp. Master Variable Rate Note, Current
rate -- 5.01%............................................. 4,508,000
------------
TOTAL SHORT-TERM INVESTMENTS................................ 10,143,738
============
TOTAL INVESTMENTS IN SECURITIES (COST: $143,066,232) (a).... $140,062,091
============
</TABLE>
(a) At December 31, 1999, the cost of securities for federal income tax
purposes was $143,457,379 and the aggregate gross unrealized appreciation
and depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 182,183
Unrealized depreciation..................................... (3,577,471)
- -------------------------------------------------------------------------
Net unrealized depreciation................................. $(3,395,288)
- -------------------------------------------------------------------------
</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 December 31,
1999, was $2,450,000.
(f) U.S. Treasury inflation-protection securities (TIPS) are securities in
which the principal amount is adjusted for inflation and the semiannual
interest payments equal a fixed percentage of the inflation-adjusted
principal amount.
24
<PAGE>
FORTIS SERIES FUND, INC.
DIVERSIFIED INCOME SERIES
Schedule of Investments
December 31, 1999
ASSET BACKED SECURITIES-9.90%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
- ----------- ----------- --------------- ---------------
<C> <S> <C> <C> <C>
COMMERCIAL LOANS-4.85%
$ 464,930 GS Mortgage Securities Corp. II Protective Life, 7.02% Ser
1996-PL Class A1 2-15-2027................................ Aaa* $ 464,901 $ 455,339
381,612 Merrill Lynch Mortgage Investors, Inc., 6.76% Variable Rate
Ser 1995-C3 Class A1 12-26-2025........................... AAA 372,065 378,364
1,400,000 Merrill Lynch Mortgage Investors, Inc., 7.42% Ser 1996-C1
Class B 4-25-2028......................................... AA 1,365,874 1,385,622
1,000,000 Midland Realty Acceptance Corp., 7.74% Variable Rate Ser
1996-C1 Class B 8-25-2028................................. AA 1,009,729 1,005,620
1,650,000 Mortgage Capital Funding, Inc., 7.90% Ser 1996-MC1 Class B
2-15-2006................................................. AA+ 1,662,248 1,684,650
--------------- ---------------
4,874,817 4,909,595
--------------- ---------------
HOUSING-1.21%
750,000 Money Store Home Improvement Trust, 7.41% Ser 1997-1
Class M1 5-15-2017........................................ AA 752,862 746,542
500,000 Money Store Residential Trust, 7.085% Ser 1997-I Class M1
7-15-2016................................................. AA 499,927 479,695
--------------- ---------------
1,252,789 1,226,237
--------------- ---------------
MANUFACTURED HOMES-1.20%
1,281,899 Green Tree Financial Corp., 7.20% Ser 1993-4 Class B1
1-15-2019................................................. Baa3* 1,273,280 1,214,625
--------------- ---------------
MISCELLANEOUS-0.04%
44,913 Fifth Third Auto Grantor Trust, 6.70% Ser 1996-B Class B
3-15-2002................................................. A 44,899 44,957
--------------- ---------------
MULTI-FAMILY LOANS-1.86%
1,500,000 DLJ Mortgage Acceptance Corp., 8.80% Multifamily Mtg Pass
Thru Certificate Ser 1993-12 Class B1 9-18-2003........... BBB** 1,473,750 1,504,950
453,068 Fund America Structured Transactions, L.P., Collateralized
Note, 8.50% Ser 1996-1 Class A Principal Only 1-1-2033
(f)(h).................................................... Baa3* 343,458 372,861
--------------- ---------------
1,817,208 1,877,811
--------------- ---------------
WHOLE LOAN RESIDENTIAL-0.74%
767,744 Mid-State Trust, 7.54% Ser 6 Class A3 7-1-2035.............. AA 767,270 744,950
--------------- ---------------
TOTAL ASSET BACKED SECURITIES............................... $ 10,030,263 $ 10,018,175
=============== ===============
</TABLE>
CORPORATE BONDS-INVESTMENT GRADE-48.52%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
- ----------- ----------- --------------- ---------------
<C> <S> <C> <C> <C>
AEROSPACE AND EQUIPMENT-1.39%
$ 500,000 Lockheed Martin Corp., 7.65% Deb 5-1-2016................... BBB- $ 502,695 $ 465,248
1,000,000 Raytheon Co., 5.70% Note 11-1-2003.......................... BBB- 1,003,479 938,371
--------------- ---------------
1,506,174 1,403,619
--------------- ---------------
AIRLINES-1.49%
1,300,000 Delta Air Lines, 10.50% Pass Thru Certificate 4-30-2016..... BBB 1,567,555 1,510,769
--------------- ---------------
AUTOMOBILE AND MOTOR VEHICLE PARTS-0.98%
1,000,000 TRW, Inc., 6.45% Note 6-15-2001............................. BBB 999,933 990,307
--------------- ---------------
AUTOMOBILE MANUFACTURERS-0.83%
1,000,000 Ford Motor Co., 6.375% 2-1-2029............................. A+ 928,529 841,182
--------------- ---------------
BANKS-7.68%
750,000 Bank Austria AG, 7.25% Sub Note 2-15-2017 (f)............... AA+ 748,678 701,332
1,000,000 Keycorp Capital II, 6.875% Bond 3-17-2029................... BBB 988,525 840,145
1,500,000 Keystone Financial Funding Corp., 7.30% Medium Term Note
5-15-2004................................................. BBB+ 1,497,490 1,473,885
1,356,000 Mellon Financial Co., 6.375% Sub Note 2-15-2010............. A 1,258,387 1,236,199
750,000 National City Corp., 6.875% Sub Note 5-15-2019.............. A- 748,701 672,638
1,000,000 Republic NY Capital I, 7.75% Deb 11-15-2026................. A- 969,744 897,755
1,100,000 Republic NY Capital II, 7.53% Deb 12-4-2026................. A- 1,054,139 962,615
500,000 St. Paul Bancorp, Inc., 7.125% Sr Note 2-15-2004............ BBB 498,502 487,156
</TABLE>
25
<PAGE>
FORTIS SERIES FUND, INC.
DIVERSIFIED INCOME SERIES (CONTINUED)
Schedule of Investments
December 31, 1999
CORPORATE BONDS-INVESTMENT GRADE-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
- ----------- ----------- --------------- ---------------
<C> <S> <C> <C> <C>
$ 500,000 Textron Financial Corp., 7.125% Note 12-9-2004.............. A- $ 497,506 $ 493,980
--------------- ---------------
8,261,672 7,765,705
--------------- ---------------
BROKERAGE AND INVESTMENT-3.38%
1,500,000 Bear Stearns Capital Trust, 7.00% Variable Rate 1-15-2027... BBB 1,499,158 1,472,781
500,000 Donaldson, Lufkin & Jenrette, 6.50% Note 6-1-2008........... A- 498,169 456,657
1,000,000 Lehman Brothers Holdings, 7.875% Note 11-1-2009............. A 1,021,960 998,022
500,000 Paine Webber Group, Inc., 7.625% Note 12-1-2009............. BBB+ 498,215 487,102
--------------- ---------------
3,517,502 3,414,562
--------------- ---------------
CABLE TELEVISION-1.04%
1,000,000 Comcast Cable Communications, Inc., 8.50% Note
5-1-2027 (with rights).................................... BBB 998,328 1,049,631
--------------- ---------------
CAPTIVE AUTO FINANCE-1.16%
750,000 General Motors Acceptance Corp., 6.15% Bond 4-5-2007........ A 747,657 695,589
500,000 Toyota Motor Credit, 5.625% Global Note 11-13-2003.......... AAA 499,350 476,340
--------------- ---------------
1,247,007 1,171,929
--------------- ---------------
CHEMICALS-0.96%
500,000 Dupont EI de Nemours Co., 6.875% Note 10-15-2009............ AA- 493,620 483,601
500,000 Equistar Chemicals, L.P., 8.75% Sr Note 2-15-2009........... BBB- 523,831 492,715
--------------- ---------------
1,017,451 976,316
--------------- ---------------
ENERGY-0.65%
750,000 NGC Corp. Capital Trust, 8.316% Deb 6-1-2027................ BBB- 750,000 662,320
--------------- ---------------
FOOD-0.48%
500,000 Fred Meyer, Inc., 7.45% Sr Note 3-1-2008.................... BBB- 529,668 485,684
--------------- ---------------
FOOD SERVICE-0.85%
1,000,000 Sysco Corp., 6.50% Deb 8-1-2028............................. AA- 996,902 858,823
--------------- ---------------
FOREIGN-GOVERNMENT-2.18%
500,000 British Columbia (Province of), 6.50% Yankee Bond
1-15-2026................................................. AA- 511,616 442,815
500,000 Korea (Republic of), 8.875% Global Bond 4-15-2008........... BBB 525,754 525,000
1,250,000 Poland (Republic of), 7.125% Yankee Note 7-1-2004........... BBB 1,245,555 1,237,500
--------------- ---------------
2,282,925 2,205,315
--------------- ---------------
FOREST PRODUCTS-0.48%
500,000 Fort James Corp., 6.50% Sr Note 9-15-2002................... BBB- 499,644 490,352
--------------- ---------------
INDUSTRIAL-0.97%
1,000,000 Procter & Gamble Co., 6.60% 12-15-2004...................... AA 998,294 986,042
--------------- ---------------
INSURANCE-1.65%
1,250,000 Prudential Insurance Co., 6.375% Sr Note 7-23-2006 (e)...... A+ 1,245,266 1,165,481
500,000 ReliaStar Financial Corp., 8.00% Note 10-30-2006............ A 498,240 502,063
--------------- ---------------
1,743,506 1,667,544
--------------- ---------------
LEASING-0.46%
500,000 Ryder System, Inc., 6.60% Note 11-15-2005................... BBB+ 499,853 466,267
--------------- ---------------
MEDIA-2.02%
1,000,000 News America Holdings, 8.875% Deb 4-26-2023................. BBB- 992,916 1,057,050
1,000,000 Westinghouse Electric Corp., 7.875% Deb 9-1-2023............ BBB- 1,104,187 982,801
--------------- ---------------
2,097,103 2,039,851
--------------- ---------------
NATURAL GAS TRANSMISSIONS-1.82%
500,000 Enron Corp., 6.95% Note 7-15-2028........................... BBB+ 451,808 439,272
1,000,000 Tennessee Gas Pipeline, 7.50% Deb 4-1-2017.................. BBB+ 985,081 943,035
500,000 Trans-Canada Pipelines Ltd., 6.49% Yankee Bond 1-21-2009.... A- 503,345 459,856
--------------- ---------------
1,940,234 1,842,163
--------------- ---------------
</TABLE>
26
<PAGE>
CORPORATE BONDS-INVESTMENT GRADE-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
- ----------- ----------- --------------- ---------------
<C> <S> <C> <C> <C>
OIL-CRUDE PETROLEUM AND GAS-1.37%
$ 500,000 Apache Finance Canada, 7.75% Deb 12-15-2029................. BBB+ $ 494,887 $ 482,525
1,000,000 Conoco Inc., 6.95% 4-15-2029................................ A- 937,596 899,254
--------------- ---------------
1,432,483 1,381,779
--------------- ---------------
OIL-EQUIPMENT WELLS AND SERVICES-1.44%
1,000,000 Anadarko Petroleum Corp., 8.25% Deb 11-15-2001.............. BBB+ 1,029,508 1,017,099
500,000 Petroleum Geo-Services, 7.125% Yankee Sr Note 3-30-2028..... BBB 498,576 436,153
--------------- ---------------
1,528,084 1,453,252
--------------- ---------------
OIL-REFINING-2.75%
1,500,000 Coastal Corp., 7.42% Note 2-15-2037......................... BBB 1,427,604 1,367,073
1,500,000 Tosco Corp., 7.80% Deb 1-1-2027............................. BBB 1,498,368 1,410,723
--------------- ---------------
2,925,972 2,777,796
--------------- ---------------
RETAIL-DEPARTMENT STORES-0.67%
750,000 Federated Department Stores, 6.30% Note 4-1-2009............ BBB+ 748,071 680,522
--------------- ---------------
SUPRA-NATIONAL-0.97%
1,000,000 Corp Andina de Fomento, 7.10% Yankee Bond 2-1-2003.......... A 999,669 985,910
--------------- ---------------
TECHNOLOGY-0.65%
750,000 Lucent Technologies, Inc., 6.45% 3-15-2029.................. A 745,994 653,247
--------------- ---------------
TELECOMMUNICATIONS-2.84%
1,000,000 360 Communications ALLTEL Corp., 7.50% Sr Note 3-1-2006..... A 998,380 1,006,595
500,000 Sprint Capital Corp., 5.875% Deb 5-1-2004................... BBB+ 497,801 474,144
750,000 US West Capital Funding, Inc., 6.50% Bond 11-15-2018........ A- 745,818 643,738
750,000 US West Communications, 7.20% Bond 11-1-2004 (f)............ A+ 751,633 745,577
--------------- ---------------
2,993,632 2,870,054
--------------- ---------------
TELEPHONE SERVICES-3.61%
1,500,000 Century Telephone Enterprises, Inc., 6.15% Sr Note
1-15-2005................................................. BBB+ 1,498,264 1,407,359
2,000,000 GTE Corp., 7.51% Note 4-1-2009.............................. A 1,986,315 2,011,538
250,000 Telecomunicaciones de Puerto Rico, 6.65% Note 5-15-2006..... BBB 249,914 235,145
--------------- ---------------
3,734,493 3,654,042
--------------- ---------------
UTILITIES-ELECTRIC-3.75%
500,000 Duke Capital Corp., 8.00% Sr Note 10-1-2019................. A 506,751 503,541
1,500,000 Empresa Nacional de Electricidad, 7.325% Yankee Bond
2-1-2037.................................................. A- 1,500,000 1,368,767
756,098 Niagara Mohawk Power, 7.25% Sr Note 10-1-2002............... BBB- 753,153 753,576
1,250,000 TXU Electric Capital V, 8.175% Deb 1-30-2037................ BBB- 1,260,901 1,165,760
--------------- ---------------
4,020,805 3,791,644
--------------- ---------------
TOTAL CORPORATE BONDS - INVESTMENT GRADE.................... $ 51,511,483 $ 49,076,627
=============== ===============
</TABLE>
CORPORATE BONDS-NON-INVESTMENT GRADE-19.22%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
- ----------- ----------- --------------- ---------------
<C> <S> <C> <C> <C>
AUTOMOBILE AND MOTOR VEHICLE PARTS-0.74%
$ 250,000 Holley Performance Products, Inc., 12.25% Sr Note 9-15-2007
(f)....................................................... B+ $ 242,183 $ 238,750
500,000 Tenneco Automotive, Inc., 11.625% Sr Sub Note 10-15-2009
(f)....................................................... B+ 500,924 510,000
--------------- ---------------
743,107 748,750
--------------- ---------------
BANKS-0.50%
500,000 Sovereign Bancorp, 10.25% Sr Note 5-15-2004................. BB+ 500,000 505,000
--------------- ---------------
</TABLE>
27
<PAGE>
FORTIS SERIES FUND, INC.
DIVERSIFIED INCOME SERIES (CONTINUED)
Schedule of Investments
December 31, 1999
CORPORATE BONDS-NON-INVESTMENT GRADE-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
- ----------- ----------- --------------- ---------------
<C> <S> <C> <C> <C>
BROADCASTING-0.49%
$ 500,000 Sinclair Broadcasting Group, Inc., 10.00% Sr Sub Note
9-30-2005................................................. B $ 500,000 $ 495,000
--------------- ---------------
BUILDING EQUIPMENT-0.25%
250,000 Better Minerals & Aggregates, 13.00% Sr Sub Note 9-15-2009
(f)....................................................... B- 250,592 251,250
--------------- ---------------
CABLE TELEVISION-4.19%
750,000 Adelphia Communications, 9.375% Sr Note 11-15-2009.......... B+ 744,076 735,000
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 796,220 10
1,000,000 Charter Communications Holdings LLC, 9.92% Sr Disc Note
4-1-2011 (Zero coupon through 4-1-2004, thereafter 9.92%)
(g)....................................................... B+ 668,768 586,250
1,000,000 CSC Holdings, Inc., 10.50% Sr Sub Deb 5-15-2016............. BB- 1,014,113 1,110,000
750,000 Mediacom LLC/Capital Corp., 7.875% Sr Note 2-15-2011........ B+ 743,232 660,000
500,000 Telewest Communication plc, 8.62% Sr Disc Note
4-15-2009 (Zero coupon through 4-15-2004, thereafter
9.25%) (f)(g)............................................. B+ 355,777 315,000
500,000 United International Holdings, 10.53% Sr Disc Note
2-15-2008 (Zero coupon through 2-15-2003, thereafter
10.75%) (g)............................................... B 369,567 320,000
500,000 United Pan European Communications N.V., 11.25% Sr Note
11-1-2009 (f)............................................. B- 497,134 513,125
--------------- ---------------
5,188,887 4,239,385
--------------- ---------------
CHEMICALS-0.50%
500,000 Lyondell Chemical Co., 9.875% Sr Secured Note Ser B
5-1-2007.................................................. BB 502,512 510,000
--------------- ---------------
ENTERTAINMENT-0.66%
500,000 Circus Circus (Mandalay Resort Group), 7.625% Sr Sub Deb
7-15-2013................................................. BB+ 430,369 435,000
250,000 Isle of Capri Casinos, 8.75% Sr Sub Note 4-15-2009.......... B 230,136 230,000
--------------- ---------------
660,505 665,000
--------------- ---------------
FOOD - MISCELLANEOUS-0.43%
500,000 Luigino's, Inc., 10.00% Sr Sub Note 2-1-2006................ B- 504,848 432,500
--------------- ---------------
FOREIGN-GOVERNMENT-0.64%
250,000 Brazil (Republic of), 11.625% Global Bond 4-15-2004......... B+ 247,918 250,000
500,000 United Mexican States, 6.25% Secured Note Ser W-B
12-31-2019................................................ BB 379,536 392,500
--------------- ---------------
627,454 642,500
--------------- ---------------
HEALTH CARE SERVICES-0.47%
125,000 Concentra Operating Corp., 13.00% Sr Sub Note 8-15-2009
(f)....................................................... B- 125,435 113,750
250,000 Triad Hospitals Holdings, 11.00% Sr Sub Note 5-15-2009...... B- 252,257 258,750
100,000 Unilab Finance Corp., 12.75% Sr Sub Note 10-1-2009 (f)...... B- 97,600 103,500
--------------- ---------------
475,292 476,000
--------------- ---------------
METALS-MINING AND MISCELLANEOUS-0.25%
250,000 AK Steel Corp., 9.125% Sr Note 12-15-2006................... BB 250,132 254,375
--------------- ---------------
OIL - CRUDE PETROLEUM AND GAS-0.99%
500,000 Ocean Energy, Inc., 8.875% Sr Sub Note Ser B 7-15-2007...... BB- 510,355 495,000
500,000 Swift Energy Co., 10.25% Sr Sub Note 8-1-2009............... B- 504,075 503,750
--------------- ---------------
1,014,430 998,750
--------------- ---------------
PAPER-0.50%
500,000 Packaging Corp. of America, 9.625% Sr Sub Note 4-1-2009..... B 515,006 510,625
--------------- ---------------
RESTAURANTS AND FRANCHISING-0.26%
250,000 Sbarro, Inc., 11.00% Sr Note 9-15-2009 (f).................. BB- 246,825 260,000
--------------- ---------------
RETAIL - DEPARTMENT STORES-0.21%
250,000 Kmart Corp., 7.95% Deb 2-1-2023............................. BB+ 219,112 217,253
--------------- ---------------
RETAIL - GROCERY-0.25%
250,000 Stater Brothers Holdings, 10.75% Sr Note 8-15-2006.......... B+ 251,109 253,125
--------------- ---------------
</TABLE>
28
<PAGE>
CORPORATE BONDS-NON-INVESTMENT GRADE-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
- ----------- ----------- --------------- ---------------
<C> <S> <C> <C> <C>
TELECOMMUNICATIONS-5.70%
$ 500,000 Intermedia Communications, Inc., 8.50% Sr Note 1-15-2008.... B $ 511,297 $ 457,500
250,000 McleodUSA, Inc., 8.125% Sr Note 2-15-2009................... B+ 249,824 233,125
250,000 Metromedia Fiber Network, Inc., 10.00% Sr Note 12-15-2009... B+ 248,269 256,250
550,000 Nextel Communications, Inc., 10.16% Sr Disc Note
9-15-2007 (Zero coupon through 9-15-2002, thereafter
10.65%) (g)............................................... B 426,910 409,750
500,000 Nextel Communications, Inc., 9.375% Sr Note 11-15-2009
(e)....................................................... B 496,592 490,000
750,000 Nextlink Communications, 10.50% Sr Note 12-1-2009 (f)....... B 750,724 761,250
500,000 Nextlink Communications, 12.125% Sr Disc Note
12-1-2009 (Zero coupon through 12-1-2004, thereafter
12.125%) (f)(g)........................................... B 280,716 291,250
150,000 Omnipoint Corp., 11.625% Sr Note Ser A 8-15-2006............ CCC+ 146,743 159,000
500,000 PSInet, Inc., 11.00% Sr Note 8-1-2009....................... B- 491,717 515,000
500,000 PTC International Finance II SA, 11.25% Sr Sub Note
12-1-2009 (e)............................................. B+ 493,190 490,000
750,000 RCN Corp., 10.125% Sr Note 1-15-2010........................ B- 750,154 746,250
500,000 Splitrock Services, Inc., 11.75% Sr Note 7-15-2008.......... NR 503,579 467,500
500,000 Winstar Communications, Inc., 11.15% Sr Disc Note
10-15-2005 (Zero coupon through 10-15-2000, thereafter
14.00%) (g)............................................... CCC+ 496,076 485,000
--------------- ---------------
5,845,791 5,761,875
--------------- ---------------
TELEPHONE SERVICES-1.69%
500,000 Alaska Communications SY, 9.375% Sr Sub Note 5-15-2009...... B+ 502,390 482,500
750,000 Level 3 Communications, Inc., 9.125% Sr Note 5-1-2008....... B 727,398 706,875
500,000 Williams Communications Group, Inc., 10.875% Sr Note
10-1-2009................................................. BB- 497,351 522,500
--------------- ---------------
1,727,139 1,711,875
--------------- ---------------
UTILITIES-ELECTRIC-0.50%
500,000 AES Corp., 9.50% Sr Note 6-1-2009........................... BB 502,174 504,375
--------------- ---------------
TOTAL CORPORATE BONDS - NON-INVESTMENT GRADE................ $ 20,524,915 $ 19,437,638
=============== ===============
</TABLE>
U.S. GOVERNMENT SECURITIES-20.21%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Cost (b) Value (c)
- ----------- --------------- ---------------
<C> <S> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 8.23%
MORTGAGE BACKED SECURITIES:
$3,421,414 6.00% 2013-2014............................................. $ 3,297,928 $ 3,247,849
272,745 6.30% 2008.................................................. 273,060 256,809
1,437,248 6.63% 2005.................................................. 1,471,788 1,396,383
2,660,674 7.00% 2029.................................................. 2,623,396 2,573,649
859,261 7.50% 2022-2027............................................. 886,402 850,261
--------------- ---------------
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION................. 8,552,574 8,324,951
--------------- ---------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 1.68%
MORTGAGE BACKED SECURITIES:
1,085,151 9.00% 2020.................................................. 1,136,696 1,135,904
529,965 9.50% 2019.................................................. 550,278 560,314
--------------- ---------------
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION.............. 1,686,974 1,696,218
--------------- ---------------
U.S. TREASURY SECURITIES - 10.30%
BONDS:
8,450,000 6.55% 2018 Zero Coupon Strip (g)............................ 2,482,795 2,349,937
2,000,000 8.125% 2021................................................. 2,583,619 2,293,126
--------------- ---------------
5,066,414 4,643,063
--------------- ---------------
NOTES:
1,940,000 5.50% 2003.................................................. 1,924,066 1,887,863
1,500,000 6.00% 2009.................................................. 1,491,751 1,453,125
</TABLE>
29
<PAGE>
FORTIS SERIES FUND, INC.
DIVERSIFIED INCOME SERIES (CONTINUED)
Schedule of Investments
December 31, 1999
U.S. GOVERNMENT SECURITIES-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Cost (b) Value (c)
- ----------- --------------- ---------------
<C> <S> <C> <C>
$2,500,000 6.125% 2007................................................. $ 2,515,506 $ 2,436,720
--------------- ---------------
5,931,323 5,777,708
--------------- ---------------
TOTAL U.S. TREASURY SECURITIES.............................. 10,997,737 10,420,771
=============== ===============
TOTAL U.S. GOVERNMENT SECURITIES............................ $ 21,237,285 $ 20,441,940
=============== ===============
</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 $ 10
------------ ---------------
TOTAL LONG-TERM INVESTMENTS................................. $103,400,447 $ 98,974,390
============ ===============
</TABLE>
SHORT-TERM INVESTMENTS-0.60%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
- ----------- ---------------
<C> <S> <C>
BANKS-0.60%
$609,174 U.S. Bank N.A. Money Market Variable Rate Time Deposit,
Current rate -- 5.30%..................................... $ 606,186
---------------
TOTAL INVESTMENTS IN SECURITIES (COST: $104,006,633)(b)..... $ 99,580,576
===============
</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 December 31, 1999, the cost of securities for federal income tax
purposes was $104,129,197 and the aggregate gross unrealized appreciation
and depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 443,076
Unrealized depreciation..................................... (4,991,697)
- -------------------------------------------------------------------------
Net unrealized depreciation................................. $(4,548,621)
- -------------------------------------------------------------------------
</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 7.54% of total net assets as of December 31, 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>
Period Acquired Shares/Par Security Cost Basis
- --------------- ---------- -------- ----------
<S> <C> <C> <C>
1997 1,008,177 Australis Media Ltd. due 2003 $ 796,220
1997 1,000 Iridium LLC/Capital Corp. (Warrants) - 144A 96,501
1999 500,000 Nextel Communications, Inc.due 2009 - 144A 496,592
1998 1,250,000 Prudential Insurance Co. due 2006 - 144A 1,245,266
1999 500,000 PTC International Finance II SA due 2009 - 144A 493,190
The aggregate value of these securities at December 31, 1999, was $2,145,501, which represents 2.12% 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 December 31, 1999, was $5,177,645, which represents
5.12% 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 December 31, 1999, based upon estimated future cash
flows. This investment has been identified by portfolio management as a
liquid security. The aggregate value of this security at December 31, 1999,
was $372,861, which represents .37% of total net assets.
* Moody's Rating
** Duff & Phelps Rating
30
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL BOND SERIES
Schedule of Investments
December 31, 1999
BONDS-INVESTMENT GRADE-65.47%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's
Principal Rating Market
Amount (d) (Unaudited) Cost (a)(d) Value (b)(d)
----------- ----------- ----------- ------------
<C> <S> <C> <C> <C>
CANADA-8.77%
950,000 Canadian Government (Canadian Dollar), 7.00%
12-1-2006.................................. AAA $ 699,282 $ 680,704
741,373 Canadian Government (European Monetary Unit),
4.875% 7-7-2008............................ AA+ 803,074 712,084
80,000,000 Canadian Government (Japanese Yen), 1.90%
3-23-2009.................................. AA+ 715,848 792,100
----------- -----------
2,218,204 2,184,888
----------- -----------
DENMARK-5.43%
2,100,000 Kingdom of Denmark (Danish Krone), 6.00%
11-15-2009................................. Aaa* 373,060 290,007
7,600,000 Kingdom of Denmark (Danish Krone), 9.00%
11-15-2000................................. AAA 1,203,835 1,064,664
----------- -----------
1,576,895 1,354,671
----------- -----------
FRANCE-9.88%
1,000,000 French Government (European Monetary Unit),
6.50% 10-25-2006........................... Aaa* 1,180,493 1,089,155
1,370,000 Government of France (European Monetary
Unit), 4.50% Treasury Bill 7-12-2002....... Aaa* 1,514,357 1,372,955
----------- -----------
2,694,850 2,462,110
----------- -----------
GERMANY-24.58%
1,120,000 Bundesobligation (European Monetary Unit),
3.25% 2-17-2004............................ Aaa* 1,129,423 1,062,874
1,000,000 Bundesobligation (European Monetary Unit),
4.50% 5-19-2003............................ AAA 1,086,980 995,666
450,000 Bundesrepublik Deutschland (European Monetary
Unit), 6.00% 2-16-2006..................... Aaa* 505,116 473,384
320,000 Bundesrepublik Deutschland (European Monetary
Unit), 6.00% 7-4-2007...................... AAA 359,278 335,165
2,230,000 Bundesrepublik Deutschland (European Monetary
Unit), 6.50% 10-14-2005.................... AAA 2,583,557 2,399,728
460,162 Deutsche Ausgleichsbank (European Monetary
Unit), 6.375% 11-7-2002.................... AAA 541,995 481,497
178,952 Freistaat Bayern (European Monetary Unit),
6.00% 10-30-2006........................... NR 201,316 185,429
360,000 Landeskreditbank Baden-Wuertemberg (German
Deutschemark), 6.625% 8-20-2003............ AAA 254,956 194,358
----------- -----------
6,662,621 6,128,101
----------- -----------
JAPAN-3.72%
80,000,000 Int'l Bank Reconstruction &
Development (Japanese Yen), 4.75%
12-20-2004................................. AAA 844,916 926,623
----------- -----------
NETHERLANDS-1.48%
350,000 Netherlands Government (Dutch Guilders),
6.50% 4-15-2003............................ AAA 397,171 368,819
----------- -----------
SPAIN-4.42%
450,000 Bonos Y Obligation Del Estado (European
Monetary Unit), 4.50% 7-30-2004............ Aa2* 476,550 442,977
675,000 Bonos Y Obligation Del Estado (European
Monetary Unit), 5.15% 7-30-2009............ AAA 710,778 658,258
----------- -----------
1,187,328 1,101,235
----------- -----------
UNITED KINGDOM-3.63%
585,000 United Kingdom Treasury (British Pound),
5.00% 6-7-2004............................. Aaa* 921,888 904,093
----------- -----------
UNITED STATES-3.56%
850,000 General Electric Capital Corp., 8.125%
2-23-2007.................................. AAA 912,870 888,462
----------- -----------
TOTAL CORPORATE BONDS - INVESTMENT GRADE..... $17,416,743 $16,319,002
=========== ===========
</TABLE>
U.S. GOVERNMENT SECURITIES-20.70%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Cost (a) Value (b)
----------- ----------- -----------
<C> <S> <C> <C>
FEDERAL HOME LOAN MORTGAGE CORP.-3.77%
NOTES:
$ 700,000 5.75% 2003................................... $ 717,429 $ 677,273
270,000 6.625% 2009.................................. 268,022 261,563
----------- -----------
TOTAL FEDERAL HOME LOAN MORTGAGE CORP........ 985,451 938,836
----------- -----------
</TABLE>
31
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL BOND SERIES (CONTINUED)
Schedule of Investments
December 31, 1999
U.S. GOVERNMENT SECURITIES-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount (d) Cost (a)(d) Value (b)(d)
----------- ----------- ------------
<C> <S> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION-8.88%
NOTES:
70,000,000 2.125% 2007(Japanese Yen).................... $ 689,391 $ 714,052
$1,300,000 5.125% 2004.................................. 1,243,421 1,219,763
300,000 6.00% 2008................................... 304,667 280,387
----------- -----------
TOTAL FEDERAL NATIONAL MORTGAGE
ASSOCIATION................................ 2,237,479 2,214,202
----------- -----------
U.S. TREASURY SECURITIES-8.05%
BONDS:
1,380,000 6.125% 2029.................................. 1,339,284 1,315,744
140,000 8.00% 2021................................... 171,827 158,813
380,000 12.50% 2014.................................. 610,919 531,169
----------- -----------
TOTAL U.S. TREASURY SECURITIES............... 2,122,030 2,005,726
=========== ===========
TOTAL U.S. GOVERNMENT SECURITIES............. 5,344,960 5,158,764
=========== ===========
TOTAL LONG-TERM INVESTMENTS.................. $22,761,703 $21,477,766
=========== ===========
</TABLE>
SHORT-TERM INVESTMENTS-11.25%
- --------------------------------------------------------------------------------
<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 -- 5.30%........ $ 777
-----------
INVESTMENT COMPANY-1.65%
409,689 First American Institutional Government Fund,
Current rate -- 4.67%...................... 409,689
-----------
U.S. TREASURY BILLS-9.60%
2,400,000 US Treasury Bill, 5.14%, 1-20-2000........... 2,393,465
-----------
TOTAL SHORT-TERM INVESTMENTS................. 2,803,931
===========
TOTAL INVESTMENTS IN SECURITIES (COST:
$25,565,634) (a)........................... $24,281,697
===========
</TABLE>
(a) At December 31, 1999, the cost of securities for federal income tax
purposes was $25,601,461 and the aggregate gross unrealized appreciation
and depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 182,619
Unrealized depreciation..................................... (1,502,383)
- -------------------------------------------------------------------------
Net unrealized depreciation................................. $(1,319,764)
- -------------------------------------------------------------------------
</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.
* Moody's Rating
32
<PAGE>
FORTIS SERIES FUND, INC.
HIGH YIELD SERIES
Schedule of Investments
December 31, 1999
CORPORATE BONDS-NON-INVESTMENT GRADE-91.18%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) 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- $ 521,447 $ 520,000
----------- -----------
AUTOMOBILE AND MOTOR VEHICLE PARTS - 3.88%
500,000 Dura Operating Corp., 9.00% Sr Sub Note 5-1-2009............ B 502,561 471,250
750,000 Hayes Lemmerz International, Inc., 8.25% Sr Sub Note
12-15-2008................................................ B 755,490 690,000
750,000 Holley Performance Products, Inc., 12.25% Sr Note 9-15-2007
(f)....................................................... B+ 726,548 716,250
750,000 Tenneco Automotive, Inc., 11.625% Sr Sub Note 10-15-2009
(f)....................................................... B+ 751,386 765,000
----------- -----------
2,735,985 2,642,500
----------- -----------
BANKS - 1.50%
1,000,000 Sovereign Bancorp, 10.50% Sr Note 11-15-2006................ BB+ 1,000,000 1,020,000
----------- -----------
BROADCASTING - 5.85%
250,000 Ackerley Group, Inc., 9.00% Sr Sub Note 1-15-2009........... B 250,000 243,750
500,000 Grupo Televisa S.A., 11.27% Sr Disc Note 5-15-2008 (Zero
coupon through 5-15-2001, thereafter 13.25%) (g).......... BB 448,567 455,000
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 1,027,182 990,000
750,000 Spanish Broadcasting Systems, 9.625% Sr Sub Note
11-1-2009................................................. B- 750,922 753,750
1,000,000 Young Broadcasting Corp., 11.75% Sr Sub Note 11-15-2004..... B 1,067,107 1,043,750
----------- -----------
4,043,778 3,986,250
----------- -----------
BUILDING EQUIPMENT - 1.33%
900,000 Better Minerals & Aggregates, 13.00% Sr Sub Note 9-15-2009
(f)....................................................... B- 902,133 904,500
----------- -----------
BUSINESS SERVICES - 1.16%
750,000 Avis Rent A Car, Inc., 11.00% Sr Sub Note 5-1-2009.......... BB- 753,388 787,500
----------- -----------
CABLE TELEVISION - 13.75%
1,500,000 Adelphia Communications, 9.375% Sr Note 11-15-2009.......... B+ 1,488,152 1,470,000
3,033,461 Australis Media Ltd., Sr 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- 1,026,695 970,000
1,625,000 Charter Communications Holdings LLC, 9.92% Sr Disc Note
4-1-2011 (Zero coupon through 4-1-2004, thereafter 9.92%)
(g)....................................................... B+ 1,086,748 952,656
500,000 Galaxy Telecom L.P., 12.375% Sr Sub Note 10-1-2005.......... B- 538,392 530,000
300,000 Insight Midwest, 9.75% Sr Note 10-1-2009 (f)................ B+ 300,571 309,750
500,000 Mediacom LLC/Capital Corp., 7.875% Sr Note 2-15-2011........ B+ 450,054 440,000
500,000 Mediacom LLC/Capital Corp., 8.50% Sr Note 4-15-2008......... B+ 500,000 465,000
500,000 Olympus Communication L.P., 10.625% Sr Note 11-15-2006...... B+ 500,000 527,500
1,000,000 Telewest Communication plc, 8.94% Sr Disc Note
4-15-2009 (Zero coupon through 4-15-2004, thereafter
9.25%) (f)(g)............................................. B+ 695,119 630,000
2,000,000 United International Holdings, 12.49% Sr Disc Note
2-15-2008 (Zero coupon through 2-15-2003, thereafter
10.75%) (g)............................................... B 1,305,573 1,280,000
1,750,000 United Pan European Communications N.V., 11.25% Sr Note
11-1-2009 (f)............................................. B- 1,739,970 1,795,938
----------- -----------
11,908,423 9,370,874
----------- -----------
CHEMICALS - 4.13%
750,000 Lyondell Chemical Co., 9.875% Sr Secured Note Ser B
5-1-2007.................................................. BB 746,573 765,000
500,000 NL Industries, Inc., 11.75% Sr Secured Note 10-15-2003...... B 540,681 517,500
1,000,000 Sterling Chemicals, Inc., 12.375% Sr Secured Note
7-15-2006................................................. BB- 1,005,483 1,035,000
1,000,000 Trans-Resources, Inc., 11.93% Sr Disc Note 3-15-2008 (Zero
coupon through 3-15-2003, thereafter 12.00%) (g).......... B- 692,023 500,000
----------- -----------
2,984,760 2,817,500
----------- -----------
CONSUMER GOODS - 0.57%
250,000 Chattem, Inc., 12.75% Sr Sub Note Ser B 6-15-2004........... B 256,380 266,875
125,000 Windmere-Durable Holdings, 10.00% Sr Sub Note 7-31-2008..... B- 125,000 123,125
----------- -----------
381,380 390,000
----------- -----------
</TABLE>
33
<PAGE>
FORTIS SERIES FUND, INC.
HIGH YIELD SERIES (CONTINUED)
Schedule of Investments
December 31, 1999
CORPORATE BONDS-NON-INVESTMENT GRADE-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
- ----------- ----------- ----------- -----------
<C> <S> <C> <C> <C>
ELECTRICAL-COMPONENTS AND PARTS - 0.69%
$ 500,000 Wesco Distribution, Inc., 9.125% Sr Sub Note 6-1-2008....... B $ 498,547 $ 470,000
----------- -----------
ENTERTAINMENT - 6.47%
1,500,000 Argosy Gaming Co., 10.75% Sr Sub Note 6-1-2009.............. B 1,507,200 1,578,750
750,000 Circus Circus (Mandalay Resort Group), 7.625% Sr Sub Deb
7-15-2013................................................. BB+ 645,553 652,500
250,000 Florida Panthers Holdings, 9.875% Sr Sub Note 4-15-2009..... B- 251,394 242,500
1,000,000 Isle of Capri Casinos, 8.75% Sr Sub Note 4-15-2009.......... B 962,772 920,000
1,000,000 Station Casinos, Inc., 10.125% Sr Sub Note 3-15-2006........ B+ 970,080 1,020,000
----------- -----------
4,336,999 4,413,750
----------- -----------
FOOD-MISCELLANEOUS - 2.09%
750,000 Agrilink Foods, Inc., 11.875% Sr Sub Note 11-1-2008......... B- 750,000 753,750
250,000 Fresh Foods, Inc., 10.75% Sr Sub Note 6-1-2006.............. B 250,000 237,500
500,000 Luigino's, Inc., 10.00% Sr Sub Note 2-1-2006................ B- 504,848 432,500
----------- -----------
1,504,848 1,423,750
----------- -----------
FOREIGN-GOVERNMENT - 0.58%
500,000 United Mexican States, 6.25% Secured Note Ser W-B
12-31-2019................................................ BB 379,536 392,500
----------- -----------
FOREST PRODUCTS - 0.74%
500,000 Stone Container Corp., 9.875% Sr Note 2-1-2001.............. B 504,226 501,250
----------- -----------
HEALTH CARE SERVICES - 3.32%
250,000 Concentra Operating Corp., 13.00% Sr Sub Note
8-15-2009 (f)............................................. B- 250,871 227,500
500,000 Tenet Healthcare Corp., 8.625% Sr Sub Note 1-15-2007........ BB- 514,835 482,500
750,000 Triad Hospitals Holdings, 11.00% Sr Sub Note 5-15-2009...... B- 756,771 776,250
750,000 Unilab Finance Corp., 12.75% Sr Sub Note 10-1-2009 (f)...... B- 743,141 776,250
----------- -----------
2,265,618 2,262,500
----------- -----------
METALS-MINING AND MISCELLANEOUS - 0.75%
500,000 AK Steel Corp., 9.125% Sr Note 12-15-2006................... BB 500,264 508,750
----------- -----------
OIL-CRUDE PETROLEUM AND GAS - 2.19%
1,000,000 Ocean Energy, Inc., 8.875% Sr Sub Note Ser B 7-15-2007...... BB- 999,503 990,000
500,000 Swift Energy Co., 10.25% Sr Sub Note 8-1-2009............... B- 504,075 503,750
----------- -----------
1,503,578 1,493,750
----------- -----------
OIL-OFFSHORE DRILLING - 1.18%
750,000 RBF Finance Co., 11.375% Sr Secured Note 3-15-2009.......... BB- 755,163 802,500
----------- -----------
PAPER - 1.50%
1,000,000 Packaging Corp. of America, 9.625% Sr Sub Note 4-1-2009..... B 1,005,790 1,021,250
----------- -----------
PRINTING - 2.87%
500,000 Cadmus Communication Corp., 9.75% Sr Sub Note 6-1-2009...... B 502,302 492,500
500,000 Day International Group, Inc., 11.125% Sr Note 6-1-2005..... B 537,422 512,500
750,000 Mail-Well Corp., 8.75% Sr Sub Note 12-15-2008............... B+ 755,726 712,500
250,000 Phoenix Color Corp., 10.375% Sr Sub Note 2-1-2009........... B- 251,899 240,000
----------- -----------
2,047,349 1,957,500
----------- -----------
RESTAURANTS AND FRANCHISING - 1.14%
750,000 Sbarro, Inc., 11.00% Sr Note 9-15-2009 (f).................. BB- 740,476 780,000
----------- -----------
RETAIL-DEPARTMENT STORES - 1.27%
1,000,000 Kmart Corp., 7.95% Deb 2-1-2023............................. BB+ 876,446 869,010
----------- -----------
RETAIL-GROCERY - 0.74%
500,000 Stater Brothers Holdings, 10.75% Sr Note 8-15-2006.......... B+ 502,217 506,250
----------- -----------
TECHNOLOGY - 0.75%
500,000 Fairchild Semiconductor, 10.375% Sr Sub Note 10-1-2007...... B 510,275 513,750
----------- -----------
</TABLE>
34
<PAGE>
CORPORATE BONDS-NON-INVESTMENT GRADE-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
- ----------- ----------- ----------- -----------
<C> <S> <C> <C> <C>
TELECOMMUNICATIONS - 22.46%
$1,000,000 Global Crossing Holdings Ltd., 9.50% Sr Note 11-15-2009
(f)....................................................... BB $ 991,299 $ 985,000
1,500,000 GST Network Funding, Inc., 15.24% Sr Disc Note
5-1-2008 (Zero coupon through 5-1-2003, thereafter 10.50%)
(g)....................................................... NR 781,575 723,750
500,000 Hermes Europe Railtel B.V., 10.375% Sr Note 1-15-2009....... B 500,000 493,750
500,000 Hyperion Telecommunications, 12.25% Sr Note Ser B
9-1-2004.................................................. BB- 530,468 538,750
1,000,000 Intermedia Communications, Inc., 8.50% Sr Note 1-15-2008.... B 992,508 915,000
500,000 Intermedia Communications, Inc., 9.03% Sr Disc Note
7-15-2007 (Zero coupon through 7-15-2002, thereafter
11.25%) (g)............................................... B 417,948 370,000
1,000,000 ITC Deltacom, Inc., 11.00% Sr Note 6-1-2007................. B 1,115,149 1,055,000
250,000 Mcleod USA, Inc., 9.25% Sr Note 7-15-2007................... B+ 251,494 233,125
970,000 McleodUSA, Inc., 9.25% Sr Note 7-15-2007.................... B+ 1,036,093 968,788
500,000 Metromedia Fiber Network, Inc., 10.00% Sr Note 12-15-2009... B+ 496,537 512,500
500,000 Metromedia Fiber Network, Inc., 10.00% Sr Note Ser B
11-15-2008................................................ B+ 504,514 511,250
1,000,000 Nextel Communications, Inc., 9.375% Sr Note 11-15-2009
(e)....................................................... B 993,185 980,000
400,000 Nextel Communications, Inc., 9.85% Sr Disc Note
9-15-2007 (Zero coupon through 9-15-2002, thereafter
10.65%) (g)............................................... B 316,245 298,000
1,750,000 Nextlink Communications, 10.50% Sr Note 12-1-2009 (f)....... B 1,751,690 1,776,250
1,000,000 Nextlink Communications, 12.125% Sr Disc Note
12-1-2009 (Zero coupon through 12-1-2004, thereafter
12.125%) (f)(g)........................................... B 561,433 582,500
1,750,000 NTL Communications Corp., 12.375% Sr Note 10-1-2008 (Zero
coupon through 10-1-2003, thereafter 12.375%) (g)......... B- 1,133,607 1,238,125
650,000 Omnipoint Corp., 11.625% Sr Note Ser A 8-15-2006............ CCC+ 634,202 689,000
750,000 PSInet, Inc., 11.00% Sr Note 8-1-2009....................... B- 756,930 772,500
500,000 RCN Corp., 10.125% Sr Note 1-15-2010........................ B- 500,103 497,500
1,250,000 Splitrock Services, Inc., 11.75% Sr Note 7-15-2008.......... NR 1,238,008 1,168,750
----------- -----------
15,502,988 15,309,538
----------- -----------
TELEPHONE SERVICES - 6.49%
750,000 Level 3 Communications, Inc., 9.125% Sr Note 5-1-2008....... B 690,730 706,875
3,000,000 Telecorp PCS, Inc., 11.625% Sr Sub Note 4-15-2009 (Zero
coupon through 4-15-2004, thereafter 11.625%) (g)......... NR 1,864,454 1,890,000
1,750,000 Williams Communications Group, Inc., 10.875% Sr Note
10-1-2009................................................. BB- 1,740,727 1,828,750
----------- -----------
4,295,911 4,425,625
----------- -----------
UTILITIES-ELECTRIC - 1.37%
1,000,000 AES Corp., 8.50% Sr Sub Note 11-1-2007...................... BB 1,023,556 935,000
----------- -----------
WASTE DISPOSAL - 1.65%
750,000 IT Group, Inc., 11.25% Sr Sub Note 4-1-2009................. B+ 750,308 727,500
375,000 Norcal Waste Systems, Inc., 13.50% Increasing Rate Sr Note
11-15-2005................................................ BB- 375,000 397,500
----------- -----------
1,125,308 1,125,000
----------- -----------
TOTAL CORPORATE BONDS - NON-INVESTMENT GRADE................ $65,110,389 $62,150,797
=========== ===========
</TABLE>
PREFERRED STOCKS - 0.81%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
- ----------- ----------- -----------
<C> <S> <C> <C>
OIL-REFINING - 0.81%
537,000 R&B Falcon Corp., 13.875% Cumm. Preferred 5-1-2009.......... $ 489,931 $ 554,387
----------- -----------
</TABLE>
COMMON STOCKS AND WARRANTS-0.97%
- --------------------------------------------------------------------------------
<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
----------- -----------
</TABLE>
35
<PAGE>
FORTIS SERIES FUND, INC.
HIGH YIELD SERIES (CONTINUED)
Schedule of Investments
December 31, 1999
COMMON STOCKS AND WARRANTS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
- ----------- ----------- -----------
<C> <S> <C> <C>
CABLE TELEVISION - 0.00%
1,500 People's Choice T.V. Corp. (Warrants) (a) (e)............... $ 15 $ 0
1,000 Wireless One, Inc. (Warrants) (a) (e)...................... 7,831 10
----------- -----------
7,846 10
----------- -----------
OIL-REFINING - 0.18%
500 R & B Falcon Corp. (Warrants) (a)(f)........................ 47,150 125,000
----------- -----------
PUBLISHING - 0.01%
2,217 Marvel Enterprises, Inc. Class A (Warrants) (a)............. 149,757 1,774
3,755 Marvel Enterprises, Inc. Class C (Warrants) (a)............. 507,310 1,877
----------- -----------
657,067 3,651
----------- -----------
TELECOMMUNICATIONS - 0.77%
3,300 Clearnet Communications, Inc. (Warrants) (a)(e)............. 42,075 73,706
14,168 e.spire Communications, Inc. (Warrants) (a)................. 137,340 82,352
250 Highwaymaster Communications, Inc. (Warrants) (a)(e)........ 2,500 625
2,560 Powertel, Inc. (Warrants) (a)(e)............................ 18,824 229,760
1,250 Splitrock Service (Warrants) (a)............................ 15,398 138,750
----------- -----------
216,137 525,193
----------- -----------
TOTAL COMMON STOCKS AND WARRANTS............................ 932,430 663,854
=========== ===========
TOTAL LONG-TERM INVESTMENTS................................. $66,532,750 $63,369,038
=========== ===========
</TABLE>
SHORT-TERM INVESTMENTS-5.14%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
- ----------- -----------
<C> <S> <C>
BANKS - 2.81%
$1,914,679 U.S. Bank N.A. Money Market Variable Rate Time Deposit,
Current rate -- 5.30%..................................... $ 1,914,679
-----------
DIVERSIFIED FINANCE - 2.33%
1,587,000 Associates Corp. Master Variable Rate Note, Current
rate -- 5.01%............................................. 1,587,000
-----------
TOTAL SHORT-TERM INVESTMENTS................................ 3,501,679
===========
TOTAL INVESTMENTS IN SECURITIES (COST: $70,034,429) (b)..... $66,870,717
===========
</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 December 31, 1999, the cost of securities for federal income tax
purposes was $70,034,429 and the aggregate gross unrealized appreciation
and depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 1,511,558
Unrealized depreciation..................................... (4,675,270)
- -------------------------------------------------------------------------
Net unrealized depreciation................................. $(3,163,712)
- -------------------------------------------------------------------------
</TABLE>
(c) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets. Market value of investments in foreign
securities represents 6.97% of total net assets as of December 31, 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>
1996-1998 3,033,461 Australis Media Ltd. due 2003 $2,277,149
1996 3,300 Clearnet Communications, Inc. (Warrants) 42,075
1998 250 Highwaymaster Communications, Inc. (Warrants) - 144A 2,500
1994 250 Hosiery Corp. of America, Inc. Class A - 144A 4,230
1999 1,000,000 Nextel Communications, Inc. due 2009 - 144A 993,185
1996 1,500 People's Choice T.V. Corp. (Warrants) 15
1997 2,560 Powertel, Inc. (Warrants) 18,824
1996 1,000 Wireless One, Inc. (Warrants) 7,831
</TABLE>
The aggregate value of these securities at December 31, 1999, was
$1,294,131, which represents 1.90% 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 December 31, 1999, was $10,373,938, which represents
15.22% of total net assets.
(g) The interest rates disclosed for these securities represents the effective
yield on the date of acquisition.
36
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL ASSET ALLOCATION SERIES
Schedule of Investments
December 31, 1999
COMMON STOCKS-56.21%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- --------------- ---------------
<C> <S> <C> <C>
AUSTRALIA - 1.06%
94,800 CSR Limited -- BUILDING MATERIALS............ $ 242,323 $ 229,537
68,150 Westpac Banking Corp. Ltd. -- BANKS.......... 434,503 468,585
--------------- ---------------
676,826 698,122
--------------- ---------------
BELGIUM - 0.48%
4,270 Delhaize-Le Lion S.A. -- FOOD................ 306,154 320,162
--------------- ---------------
BERMUDA - 0.39%
8,600 Terra Nova (Burmuda) Holdings -- INSURANCE... 168,570 258,000
--------------- ---------------
CANADA - 1.28%
15,760 BCT.Telus Communications,
Inc. -- TELECOMMUNICATIONS................. 444,830 381,702
5,353 BCT.Telus Communications, Inc., A
Shares -- TELECOMMUNICATIONS............... 122,994 128,541
7,030 Potash Corp. of Saskatchewan -- CHEMICALS.... 493,993 334,231
--------------- ---------------
1,061,817 844,474
--------------- ---------------
DENMARK - 0.28%
4,800 Danisco A/S -- DIVERSIFIED COMPANIES......... 229,325 186,197
--------------- ---------------
FRANCE - 5.11%
13,400 Aventis S.A. -- DRUGS........................ 635,638 775,035
3,090 Groupe Danone -- FOOD........................ 733,254 724,795
5,010 Michelin (C.G.D.E.) Class B -- RUBBER AND
PLASTIC.................................... 239,751 195,859
8,690 Pernod Ricard -- BEVERAGE.................... 562,404 494,776
8,510 Scor S.A. -- INSURANCE....................... 504,067 373,632
6,103 Total Fina S.A. Class B -- OIL-CRUDE
PETROLEUM AND GAS.......................... 501,341 810,588
--------------- ---------------
3,176,455 3,374,685
--------------- ---------------
GERMANY - 2.72%
13,580 Basf AG -- CHEMICALS......................... 511,307 706,493
7,230 Bayer AG -- CHEMICALS........................ 285,814 342,075
1,950 Schering AG -- DRUGS......................... 216,667 234,562
7,850 Veba AG -- UTILITIES-ELECTRIC................ 434,906 381,639
2,300 Volkswagen AG -- AUTOMOBILE MANUFACTURERS.... 86,704 129,109
--------------- ---------------
1,535,398 1,793,878
--------------- ---------------
HONG KONG - 0.61%
129,000 Hong Kong Electric
Holdings -- UTILITIES-ELECTRIC............. 409,610 403,255
--------------- ---------------
IRELAND - 1.56%
92,202 Bank of Ireland -- BANKS.................... 703,694 730,141
52,688 Green Property plc -- REAL ESTATE............ 178,963 301,042
--------------- ---------------
882,657 1,031,183
--------------- ---------------
ITALY - 2.24%
40,500 Mediaset S.p.A. -- BROADCASTING.............. 197,674 626,821
140,993 Telecom Italia S.p.A -- TELEPHONE SERVICES... 611,251 855,055
--------------- ---------------
808,925 1,481,876
--------------- ---------------
JAPAN - 6.20%
1,000 Canon, Inc. -- OFFICE EQUIPMENT AND
SUPPLIES................................... 29,388 39,666
27,000 Daiichi Pharmaceutical Co., Ltd. -- DRUGS.... 414,745 350,574
18,000 Fuji Photo Film -- PHOTOGRAPHIC.............. 580,763 655,952
34,000 Hitachi Ltd. -- ELECTRONIC-CONTROLS AND
EQUIPMENT.................................. 281,257 544,771
7,000 KAO Corp. -- HOUSEHOLD PRODUCTS.............. 146,053 199,355
13,000 Mitsubishi Electric
Corp. -- ELECTRIC-PRODUCTS................. 80,401 83,826
8,000 Mitsui & Co., Ltd. -- MISCELLANEOUS.......... 63,385 55,884
73 Nippon Telegraph & Telephone
Corp. -- TELEPHONE SERVICES................ 583,544 1,248,107
16,000 Pioneer Electronic
Corp. -- ELECTRONIC-CONTROLS AND
EQUIPMENT.................................. 288,514 422,060
25,000 Sumitomo Marine and Fire -- INSURANCE........ 156,030 153,876
10,000 Tokyo Gas Co., Ltd. -- UTILITIES-ELECTRIC.... 23,097 24,327
17,000 Toppan Printing Co., Ltd. -- PRINTING........ 214,502 169,410
19,000 Toshiba Corp. -- ELECTRONIC-COMPONENTS....... 146,779 144,790
--------------- ---------------
3,008,458 4,092,598
--------------- ---------------
</TABLE>
37
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL ASSET ALLOCATION SERIES (CONTINUED)
Schedule of Investments
December 31, 1999
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- --------------- ---------------
<C> <S> <C> <C>
NETHERLANDS - 2.00%
13,172 ABN-AMRO Holding NV -- BANKS................. $ 158,840 $ 327,450
9,528 ING Groep NV -- BANKS........................ 292,130 572,479
3,124 Koninklijke Philips Electronics
NV -- ELECTRIC-PRODUCTS.................... 136,039 422,752
--------------- ---------------
587,009 1,322,681
--------------- ---------------
PORTUGAL - 0.33%
13,364 Cimpor Cimentos De Portugal -- BUILDING
MATERIALS.................................. 231,905 221,035
--------------- ---------------
SPAIN - 2.35%
41,800 Iberdrola S.A. -- UTILITIES-ELECTRIC......... 479,608 576,548
39,355 Telefonica S.A. -- TELECOMMUNICATIONS........ 446,680 978,338
--------------- ---------------
926,288 1,554,886
--------------- ---------------
SWEDEN - 0.56%
63,200 Nordbanken Holding AB -- BANKS............... 308,564 369,893
--------------- ---------------
SWITZERLAND - 4.68%
520 Compagnie Financiere Richemont
AG -- TOBACCO.............................. 694,205 1,234,460
450 Forbo Holding AG -- BUILDING MATERIALS....... 183,384 210,845
242 Holderbank Financiere Glaris AG -- BUILDING
MATERIALS.................................. 199,956 329,581
594 Nestle S.A. -- FOOD.......................... 973,280 1,082,463
590 Swisscom AG -- TELEPHONE SERVICES............ 158,770 237,371
--------------- ---------------
2,209,595 3,094,720
--------------- ---------------
UNITED KINGDOM - 6.70%
93,900 Allied Domecq plc -- FOOD.................... 397,625 460,448
7,500 AstraZeneca plc -- DRUGS..................... 331,040 310,413
50,203 Blue Circle Industries plc -- BUILDING
MATERIALS.................................. 245,971 286,631
16,708 Burmah Castrol plc -- OIL-CRUDE PETROLEUM AND
GAS........................................ 247,228 316,414
33,400 Cadbury Schweppes plc -- FOOD................ 194,114 201,327
41,100 Great Universal Stores plc -- RETAIL-VARIETY
AND VARIETY MAIL ORDER..................... 357,466 227,537
37,500 Imperial Tobacco Group plc -- TOBACCO........ 285,316 299,175
57,400 Matthews (Bernard) plc -- FOOD............... 88,718 108,701
10,500 National Westminster Bank plc -- BANKS....... 195,595 225,582
62,842 Reckitt Benckiser plc -- HOUSEHOLD
PRODUCTS................................... 773,065 591,489
63,322 Royal & Sun Alliance Insurance Group
plc -- INSURANCE........................... 574,937 472,008
79,441 Sainsbury (J) plc -- FOOD.................... 466,918 445,562
30,550 WPP Group plc -- ADVERTISING-PUBLIC
RELATIONS.................................. 129,395 480,065
--------------- ---------------
4,287,388 4,425,352
--------------- ---------------
UNITED STATES - 17.66%
25,083 Albertson's, Inc. -- RETAIL-GROCERY.......... 1,002,640 808,927
6,660 Alcoa, Inc. -- METALS-MINING AND
MISCELLANEOUS.............................. 297,580 552,780
9,250 BJ's Wholesale Club,
Inc. (a) -- RETAIL-DISCOUNT STORES......... 106,310 337,625
7,700 Boise Cascade Corp. -- PAPER................. 211,120 311,850
10,000 Borg-Warner Automotive, Inc. -- AUTOMOBILE
AND MOTOR VEHICLE PARTS.................... 393,656 405,000
20,410 Cadiz, Inc. -- LAND DEVELOPMENT.............. 219,681 193,895
6,200 Chase Manhattan Corp. -- BANKS............... 334,898 481,662
11,630 Comsat Corp. -- TELECOMMUNICATIONS........... 295,881 231,146
20,850 Enhance Financial Services Group,
Inc. -- INSURANCE.......................... 310,221 338,813
9,700 Finova Group, Inc. -- FINANCIAL SERVICES..... 270,840 344,350
11,600 Fort James Corp. -- PAPER.................... 389,391 317,550
5,600 General Dynamics Corp. -- AEROSPACE AND
EQUIPMENT.................................. 334,536 295,400
15,000 GenRad, Inc. (a) -- ELECTRONIC-CONTROLS AND
EQUIPMENT.................................. 190,230 241,875
4,600 Georgia-Pacific Group -- PAPER............... 111,766 233,450
11,000 Goodrich (B.F.) Co. -- AEROSPACE AND
EQUIPMENT.................................. 452,954 302,500
8,200 GTE Corp. -- TELEPHONE SERVICES.............. 611,254 578,613
17,800 Houghton Mifflin Co. -- PUBLISHING........... 491,626 750,938
13,650 MBIA, Inc. -- INSURANCE...................... 689,428 720,891
18,900 Mellon Financial Corp. -- BANKS.............. 459,221 643,781
7,460 NCR Corp. (a) -- COMPUTER-COMMUNICATION
EQUIPMENT.................................. 214,847 282,548
7,660 Noble Drilling Corp. (a) -- OIL-OFFSHORE
DRILLING................................... 92,028 250,865
7,550 Pharmacia & Upjohn, Inc. -- DRUGS............ 253,548 339,750
35,550 Philip Morris Companies, Inc. -- TOBACCO..... 1,579,705 824,316
</TABLE>
38
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- --------------- ---------------
<C> <S> <C> <C>
10,000 Rite Aid Corp. -- RETAIL-SPECIALTY........... $ 251,663 $ 111,875
10,600 Sears, Roebuck & Co. -- RETAIL-DEPARTMENT
STORES..................................... 435,790 322,638
11,200 Tupperware Corp. -- RETAIL-SPECIALTY......... 293,595 189,700
11,850 U.S. Bancorp -- BANKS........................ 388,841 282,178
22,250 Unicom Corp. -- UTILITIES-ELECTRIC........... 819,628 745,375
7,100 UST Corp. -- BANKS........................... 106,134 225,425
--------------- ---------------
11,609,012 11,665,716
--------------- ---------------
TOTAL COMMON STOCKS.......................... $ 32,423,956 $ 37,138,713
=============== ===============
</TABLE>
PREFERRED STOCKS-0.26%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------ -------- ---------------
<C> <S> <C> <C>
GERMANY - 0.26%
5,400 Volkswagen AG Preferred -- AUTOMOBILE
MANUFACTURERS.............................. $198,620 $ 173,215
-------- ---------------
</TABLE>
BONDS-INVESTMENT GRADE-30.15%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's
Principal Rating Market
Amount (g) (Unaudited) Cost (b)(g) Value (c)(g)
------------ ----------- ------------ ---------------
<C> <S> <C> <C> <C>
AUSTRALIA - 0.44%
400,000 Australian Government (Australian Dollar),
12.00% 11-15-2001.......................... AAA $ 284,471 $ 287,944
------------ ---------------
BELGIUM - 0.17%
100,000 Belgium Kingdom (US Dollar), 9.20%
6-28-2010.................................. AA+ 126,833 114,398
------------ ---------------
CANADA - 1.51%
800,000 Canadian Government (Canadian Dollar), 5.25%
9-1-2003................................... Aa1* 529,544 534,186
600,000 Canadian Government (Canadian Dollar), 8.75%
12-1-2005.................................. AAA 479,552 463,380
------------ ---------------
1,009,096 997,566
------------ ---------------
DENMARK - 2.48%
350,000 Depfa Pfandbriefbank (European Monetary
Unit), 5.50% 1-15-2010..................... AAA 364,263 344,401
5,800,000 Kingdom of Denmark (Danish Krone), 7.00%
12-15-2004................................. AAA 917,039 837,336
3,000,000 Kingdom of Denmark (Danish Krone), 8.00%
3-15-2006.................................. AAA 503,557 457,322
------------ ---------------
1,784,859 1,639,059
------------ ---------------
FRANCE - 3.81%
1,600,000 Government of France (European Monetary
Unit), 5.25% 4-25-2008..................... AAA 1,738,609 1,599,997
900,000 Government of France (European Monetary
Unit), 5.50% 10-25-2007.................... AAA 927,719 917,623
------------ ---------------
2,666,328 2,517,620
------------ ---------------
GERMANY - 5.20%
1,000,000 Bundesrepublik Deutschland (European Monetary
Unit), 6.50% 10-14-2005.................... AAA 1,284,144 1,076,111
1,500,000 Bundesrepublik Deutschland (European Monetary
Unit), 6.50% 7-4-2027...................... Aaa* 1,953,357 1,606,145
250,000 Deutsche Ausgleichsbank (European Monetary
Unit), 4.00% 7-4-2009...................... Aaa* 267,224 219,853
260,000 Deutsche Ausgleichsbank (US Dollar), 5.125%
9-22-2003.................................. AAA 259,782 245,167
150,000 Hypovereinsbank (US Dollar), 8.741%
6-30-2031 (e).............................. A- 150,000 147,925
150,000 Philip Morris Financial (European Monetary
Unit), 4.50% 4-6-2006...................... A 147,596 137,038
------------ ---------------
4,062,103 3,432,239
------------ ---------------
ITALY - 1.07%
200,000 Italian Government BTP (European Monetary
Unit), 9.50% 2-1-2006...................... AAA 268,681 242,763
40,000,000 Republic of Italy (Japanese Yen), 5.00%
12-15-2004................................. AA 463,717 466,072
------------ ---------------
732,398 708,835
------------ ---------------
JAPAN - 5.24%
43,000,000 Int'l Bank Reconstruction &
Development (Japanese Yen), 4.75%
12-20-2004................................. AAA 416,031 498,060
56,000,000 Japan Development Bank (Japanese Yen), 6.50%
9-20-2001.................................. AAA 582,920 604,340
</TABLE>
39
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL ASSET ALLOCATION SERIES (CONTINUED)
Schedule of Investments
December 31, 1999
BONDS-INVESTMENT GRADE-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's
Principal Rating Market
Amount (g) (Unaudited) Cost (b)(g) Value (c)(g)
------------ ----------- ------------ ---------------
<C> <S> <C> <C> <C>
260,000,000 Japan JGB #207A (Japanese Yen), 0.90%
12-22-2008................................. Aa1* $ 2,133,897 $ 2,356,425
------------ ---------------
3,132,848 3,458,825
------------ ---------------
NETHERLANDS - 0.20%
150,000 Mannesmann Finance BV (European Monetary
Unit), 4.75% 5-27-2009..................... A 145,344 132,388
------------ ---------------
SPAIN - 0.19%
130,000 Instituto De Credito Oficial (US Dollar),
6.00% 5-19-2008............................ AA 130,476 121,791
------------ ---------------
SWEDEN - 1.76%
6,000,000 Kingdom of Sweden (Swedish Krona), 13.00%
6-15-2001.................................. Aa1* 792,038 781,264
3,200,000 Swedish Government (Swedish Krona), 6.00%
2-9-2005................................... Aa1* 408,580 383,189
------------ ---------------
1,200,618 1,164,453
------------ ---------------
UNITED KINGDOM - 3.71%
100,000 Abbey Nationl plc (US Dollar), 7.95%
10-26-2029................................. AA- 99,627 99,846
150,000 British American Tobacco plc (European
Monetary Unit), 4.875% 2-25-2009........... A 141,934 134,759
150,000 Burmah Castrol plc (European Monetary Unit),
4.875% 3-31-2009........................... A 146,740 137,207
130,000 Halifax plc (US Dollar), 6.00% 2-26-2008..... AA 129,306 119,953
150,000 Royal Bank of Scotland, 4.875% (European
Monetary Unit), 3-26-2009.................. A 145,906 136,121
230,000 Scottish Power plc (German Deutschmark),
5.25% 8-4-2008............................. A+ 128,577 111,629
550,000 United Kingdom Treasury (British pound),
8.00% 12-7-2000............................ AAA 905,005 900,618
150,000 United Kingdom Treasury (British Pound),
8.00% 6-10-2003............................ AAA 259,924 254,254
300,000 United Kingdom Treasury (British Pound),
8.50% 7-16-2007............................ AAA 613,875 558,792
------------ ---------------
2,570,894 2,453,179
------------ ---------------
UNITED STATES - 4.37%
$ 70,000 Ahold Finance USA, Inc., 6.875% 5-1-2029..... A 69,763 61,439
100,000 Ameritech Capital Funding, 6.25% 5-18-2009... AA+ 99,228 90,980
150,000 Associates Corp. NA, 6.00% 7-15-2005......... AA- 149,675 140,425
190,000 AT&T Corp., 6.50% 3-15-2029.................. AA- 188,114 162,670
170,000 Bank of America Corp., 5.875% 2-15-2009...... A+ 154,265 151,420
230,000 Citicorp, 5.50% 6-30-2010.................... A+ 127,580 111,706
150,000 Conoco Inc., 6.95% 4-15-2029................. A- 150,000 134,888
90,000 Dresdner Funding Trust II (European Monetary
Unit), 5.79% 6-30-2011 (e)................. A+ 96,075 82,064
150,000 Farmers Exchange Capital, 7.05%
7-15-2028 (e).............................. A 137,689 127,354
80,000 Florida Windstorm, 7.125% 2-25-2019 (e)...... AAA 79,569 73,419
160,000 Ford Motor Co., 6.375% 2-1-2029.............. A+ 158,126 134,589
130,000 General Electric Capital Corp., 8.125%
2-23-2007.................................. AAA 145,337 135,883
80,000 General Motors, 6.75% 5-1-2028............... A 79,906 70,851
150,000 Goldman Sachs Group, Inc., 6.65% 5-15-2009... A+ 149,712 139,739
100,000 Household Finance Corp., 6.375% 8-1-2010..... A 98,827 89,807
200,000 Lucent Technologies, Inc., 6.45% 3-15-2029... A 198,932 174,199
120,000 Merrill Lynch & Co., 6.875% 11-15-2018....... AA- 119,427 108,682
100,000 Met Life Insurance, 7.45% 11-1-2023 (e)...... A+ 101,349 89,404
150,000 Monsanto Co., 6.60% 12-1-2028 (f)............ A 149,466 128,910
100,000 Nationwide Mutual Insurance, 7.50%
2-15-2024 (e).............................. A+ 101,908 91,125
250,000 Procter & Gamble Co., 6.60% 12-15-2004....... AA 249,573 246,511
150,000 Wal-Mart Stores, 6.875% 8-10-2009............ AA 149,428 146,019
200,000 Wells Fargo Co., 6.625% 7-15-2004............ A+ 199,898 195,617
------------ ---------------
3,153,847 2,887,701
------------ ---------------
TOTAL CORPORATE BONDS - INVESTMENT GRADE..... $ 21,000,115 $ 19,915,998
============ ===============
</TABLE>
U.S. GOVERNMENT SECURITIES-5.70%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount (g) Cost (b)(g) Value (c)(g)
------------ --------------- ---------------
<C> <S> <C> <C>
FEDERAL HOME LOAN MORTGAGE CORP. - 0.44%
NOTES:
$ 300,000 5.75% 2003................................... $ 300,944 $ 290,260
--------------- ---------------
</TABLE>
40
<PAGE>
U.S. GOVERNMENT SECURITIES-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount (g) Cost (b)(g) Value (c)(g)
------------ --------------- ---------------
<C> <S> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 1.27%
NOTES:
$ 650,000 5.75% 2005................................... $ 650,759 $ 617,053
100,000 6.375% 2007 (Australian Dollar).............. 64,116 61,945
250,000 6.50% 2002 (Australian Dollar)............... 183,121 162,939
--------------- ---------------
TOTAL FEDERAL NATIONAL MORTGAGE
ASSOCIATION................................ 897,996 841,937
--------------- ---------------
OTHER DIRECT FEDERAL OBLIGATIONS - 0.24%
TENNESSEE VALLEY AUTHORITY:
180,000 5.375% 2008.................................. 179,311 160,412
--------------- ---------------
U.S. TREASURY SECURITIES - 3.75%
BONDS:
800,000 8.125% 2019.................................. 963,741 911,500
--------------- ---------------
NOTES:
950,000 6.25% 2007................................... 961,297 934,860
350,000 7.50% 2005................................... 373,106 365,094
250,000 7.875% 2004.................................. 283,040 264,453
--------------- ---------------
TOTAL U.S. TREASURY SECURITIES............... 2,581,184 2,475,907
--------------- ---------------
TOTAL U.S. GOVERNMENT SECURITIES............. 3,959,435 3,768,516
=============== ===============
TOTAL LONG-TERM INVESTMENTS.................. $ 57,582,126 $ 60,996,442
=============== ===============
</TABLE>
SHORT-TERM INVESTMENTS-4.51%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
------------ ------------
<C> <S> <C>
BANKS - 4.51%
$ 2,977,676 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 5.30%........ $ 2,977,676
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$60,559,802) (B)........................... $ 63,974,118
============
</TABLE>
(a) Presently not paying dividend income.
(b) At December 31, 1999, the cost of securities for federal income tax
purposes was $60,642,129 and the aggregate gross unrealized appreciation
and depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 8,017,574
Unrealized depreciation..................................... (4,685,585)
- -------------------------------------------------------------------------
Net unrealized appreciation................................. $ 3,331,989
- -------------------------------------------------------------------------
</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 ll due 2011 -
144A $ 96,075
1999 150,000 Farmers Exchange Capital due 2028 - 144A 137,689
1999 80,000 Florida Windstorm due 2019 - 144A 79,569
1999 150,000 Hypovereinsbank due 2031 - 144A 150,000
1998 100,000 Met Life Insurance due 2023 - 144A 101,349
1998 100,000 Nationwide Mutual Insurance due 2024 -
144A 101,908
</TABLE>
The aggregate value of these securities at December 31, 1999, was $611,291,
which represents .93% 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 December 31, 1999, was $128,910, which represents .20%
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
December 31, 1999
COMMON STOCKS-64.59%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
ADVERTISING-PUBLIC RELATIONS - 1.48%
174,300 Interpublic Group of Companies, Inc. $ 5,181,935 $ 10,054,931
------------ ------------
BANKS - 0.74%
148,000 Mellon Financial Corp........................ 5,063,066 5,041,250
------------ ------------
BIOMEDICS, GENETICS RESEARCH AND DEVELOPMENT
- 1.77%
83,400 Amgen, Inc. (with rights) (a)................ 3,507,619 5,009,212
52,000 Genentech, Inc. (a).......................... 4,737,697 6,994,000
------------ ------------
8,245,316 12,003,212
------------ ------------
BROADCASTING - 3.29%
108,000 AMFM, Inc. (a)............................... 5,685,641 8,451,000
118,000 AT&T Corp. - Liberty Media Group (a) 3,840,571 6,696,500
66,000 USA Networks, Inc. (a)....................... 2,673,936 3,646,500
59,000 Viacom, Inc. Class B (a)..................... 1,952,590 3,565,812
------------ ------------
14,152,738 22,359,812
------------ ------------
BUSINESS SERVICES - 2.27%
126,000 Automatic Data Processing, Inc............... 6,149,175 6,788,250
77,000 Equant N.V. NY Shares (a).................... 6,999,993 8,624,000
------------ ------------
13,149,168 15,412,250
------------ ------------
COMPUTER-COMMUNICATION EQUIPMENT - 1.81%
258,100 Cabletron Systems, Inc. (a).................. 4,158,445 6,710,600
52,500 Cisco Systems, Inc. (a)...................... 2,337,709 5,624,062
------------ ------------
6,496,154 12,334,662
------------ ------------
COMPUTER-HARDWARE - 1.48%
23,000 Apple Computer, Inc. (a)..................... 1,727,500 2,364,687
21,000 EMC Corp. (a)................................ 1,554,191 2,294,250
70,000 Sun Microsystems, Inc. (a)................... 2,756,068 5,420,625
------------ ------------
6,037,759 10,079,562
------------ ------------
COMPUTER-SOFTWARE - 8.21%
76,000 America Online, Inc. (a)..................... 4,395,376 5,733,250
85,000 Computer Associates International, Inc....... 5,186,986 5,944,687
10,000 DoubleClick, Inc. (a)........................ 1,784,594 2,530,625
37,900 i2 Technologies, Inc. (a).................... 4,383,442 7,390,500
20,000 Intuit, Inc. (a)............................. 1,182,399 1,198,750
58,000 Legato Systems, Inc. (a)..................... 2,410,773 3,991,125
32,000 Lycos, Inc. (a).............................. 2,403,318 2,546,000
114,000 Microsoft Corp. (a).......................... 7,605,882 13,309,500
38,000 Mission Critical Software, Inc. (a).......... 2,199,250 2,660,000
23,000 Peregrine Systems, Inc. (a).................. 1,698,863 1,900,375
42,000 Siebel Systems, Inc. (a)..................... 2,242,055 3,528,000
11,800 Yahoo!, Inc. (a)............................. 2,186,747 5,105,712
------------ ------------
37,679,685 55,838,524
------------ ------------
CONSUMER GOODS - 1.38%
98,000 Colgate-Palmolive Co......................... 4,401,205 6,370,000
46,000 Kimberly-Clark Corp.......................... 2,407,495 3,001,500
------------ ------------
6,808,700 9,371,500
------------ ------------
DIVERSIFIED COMPANIES - 0.79%
55,000 Minnesota Mining and Manufacturing Co........ 4,905,384 5,383,125
------------ ------------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
DRUGS - 2.03%
78,000 American Home Products Corp.................. $ 3,576,002 $ 3,076,125
70,000 Bristol-Myers Squibb Co...................... 4,838,072 4,493,125
38,000 Eli Lilly & Co............................... 2,775,326 2,527,000
45,000 Warner-Lambert Co............................ 3,956,418 3,687,187
------------ ------------
15,145,818 13,783,437
------------ ------------
ELECTRIC-PRODUCTS - 0.80%
53,250 Honeywell International, Inc................. 2,694,467 3,071,859
52,000 Molex, Inc. Class A.......................... 2,241,262 2,353,000
------------ ------------
4,935,729 5,424,859
------------ ------------
ELECTRICAL EQUIPMENT - 1.96%
86,300 General Electric Co.......................... 9,162,765 13,354,925
------------ ------------
ELECTRICAL-COMPONENTS AND PARTS - 0.20%
15,000 Analog Devices, Inc. (a)..................... 1,019,232 1,395,000
------------ ------------
ELECTRONIC-COMPONENTS - 0.19%
13,400 Solectron Corp. (a).......................... 1,177,000 1,274,675
------------ ------------
ELECTRONIC-CONTROLS AND EQUIPMENT - 0.54%
29,000 Applied Materials, Inc. (a).................. 3,298,147 3,673,937
------------ ------------
ELECTRONIC-SEMICONDUCTOR AND CAPACITOR -
2.51%
68,000 JDS Uniphase Corp. (a)....................... 3,144,953 10,969,250
43,000 Texas Instruments, Inc....................... 1,418,234 4,165,625
42,000 Xilinx, Inc. (a)............................. 1,724,386 1,909,687
------------ ------------
6,287,573 17,044,562
------------ ------------
FINANCIAL SERVICES - 3.69%
25,100 American Express Co.......................... 3,171,152 4,172,875
87,000 Citigroup, Inc............................... 4,367,509 4,833,938
17,500 CMGI, Inc. (a)............................... 1,702,205 4,845,313
37,000 Marsh & McLennan Companies, Inc. 2,768,241 3,540,438
31,000 Morgan Stanley Dean Witter & Co.............. 4,096,879 4,425,250
77,000 SLM Holding Corp............................. 4,085,531 3,253,250
------------ ------------
20,191,517 25,071,064
------------ ------------
FOOD - 0.58%
99,000 Sysco Corp................................... 3,517,084 3,916,688
------------ ------------
HEALTH CARE SERVICES - 1.21%
281,000 Columbia/HCA Healthcare Corp................. 7,155,848 8,236,813
------------ ------------
INSURANCE - 1.34%
84,000 American International Group, Inc............ 3,557,001 9,082,500
------------ ------------
LEISURE TIME-AMUSEMENTS - 0.50%
117,000 Walt Disney Co............................... 3,278,387 3,422,250
------------ ------------
MEDIA - 1.16%
110,600 CBS Corp. (a)................................ 5,032,865 7,071,488
9,500 Clear Channel Communications, Inc. (a)....... 756,389 847,875
------------ ------------
5,789,254 7,919,363
------------ ------------
MEDICAL TECHNOLOGY - 0.22%
40,800 Medtronic, Inc. (with rights)................ 562,101 1,486,650
------------ ------------
NATURAL GAS TRANSMISSIONS - 0.93%
143,000 Enron Corp................................... 4,017,763 6,345,625
------------ ------------
</TABLE>
42
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
OIL-CRUDE PETROLEUM AND GAS - 0.94%
50,000 Exxon Mobil Corp............................. $ 3,647,101 $ 4,028,125
44,000 Texaco, Inc.................................. 2,804,437 2,389,750
------------ ------------
6,451,538 6,417,875
------------ ------------
OIL-REFINING - 0.59%
46,000 Atlantic Richfield Co........................ 4,064,907 3,979,000
------------ ------------
PRECISION INSTRUMENTS-TEST, RESEARCH - 1.50%
50,400 Agilent Technologies, Inc. (a)............... 1,512,000 3,896,550
52,500 PE Corp-PE Biosystems Group.................. 2,682,225 6,316,406
------------ ------------
4,194,225 10,212,956
------------ ------------
PUBLISHING - 0.57%
133,200 Reader's Digest Association, Inc. Class A.... 3,890,539 3,896,100
------------ ------------
RETAIL-DEPARTMENT STORES - 0.39%
36,500 Kohl's Corp. (a)............................. 357,545 2,634,844
------------ ------------
RETAIL-DISCOUNT STORES - 1.08%
106,000 Wal-Mart Stores, Inc......................... 3,340,483 7,327,250
------------ ------------
RETAIL-SPECIALTY - 0.65%
57,600 Home Depot, Inc.............................. 700,340 3,949,200
9,100 Tandy Corp. (with rights).................... 381,160 447,606
------------ ------------
1,081,500 4,396,806
------------ ------------
TELECOMMUNICATION EQUIPMENT - 6.71%
62,000 Advanced Fibre Communications, Inc. (a)...... 2,034,945 2,770,625
99,000 CIENA Corp. (a).............................. 5,366,902 5,692,500
54,500 General Instrument Corp. (a)................. 2,661,689 4,632,500
30,000 General Motors Corp. Class H................. 2,145,301 2,880,000
56,000 Motorola, Inc................................ 4,391,886 8,246,000
49,000 Nextel Communications, Inc. (a).............. 2,862,266 5,053,125
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
27,000 Nokia Corp. ADR.............................. $ 2,324,918 $ 5,130,000
66,000 Nortel Networks Corp......................... 3,413,924 6,666,000
26,000 QUALCOMM, Inc. (a)........................... 2,508,637 4,582,500
------------ ------------
27,710,468 45,653,250
------------ ------------
TELECOMMUNICATIONS - 5.85%
1,000 Adelphia Business Solutions,
Inc. (Warrants) (a) (e).................... 4,022 175,000
92,000 BroadWing, Inc. (a).......................... 2,213,373 3,392,500
60,000 Cable & Wireless plc ADR..................... 2,432,863 3,176,250
47,000 Corning, Inc................................. 4,901,193 6,060,063
64,000 EchoStar Communications Corp. (a) 4,586,800 6,240,000
141,500 Global Crossing Ltd. (a)..................... 2,749,651 7,075,000
250 Highwaymaster Communications,
Inc. (Warrants) (a) (e).................... 4,547 625
33,300 Level 3 Communications, Inc. (a)............. 2,187,203 2,726,438
53,400 Sonera Oyj Corp. ADR (a)..................... 1,420,992 3,697,950
63,000 Vodafone AirTouch plc ADR.................... 647,642 3,118,500
29,000 VoiceStream Wireless Corp. (a)............... 1,392,644 4,127,063
------------ ------------
22,540,930 39,789,389
------------ ------------
TELEPHONE SERVICES - 3.35%
64,000 Alltel Corp.................................. 3,996,646 5,292,000
117,000 AT&T Corp.................................... 6,409,026 5,937,750
114,200 Bell Atlantic Corp........................... 7,148,619 7,030,438
38,164 SBC Communications, Inc...................... 2,187,088 1,860,495
39,500 Sprint Corp.................................. 2,111,710 2,658,844
------------ ------------
21,853,089 22,779,527
------------ ------------
UTILITIES-ELECTRIC - 1.88%
119,000 AES Corp. (a)................................ 4,828,253 8,895,250
111,000 Illinova Corp................................ 3,404,356 3,857,250
------------ ------------
8,232,609 12,752,500
------------ ------------
TOTAL COMMON STOCKS.......................... $300,532,957 $439,150,673
============ ============
</TABLE>
ASSET BACKED SECURITIES - 2.83%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
----------- ----------- ------------ ------------
<C> <S> <C> <C> <C>
COMMERCIAL LOANS - 1.24%
$1,500,000 GMAC Commercial Mortgage Securities, Inc.,
7.085% Ser 1997-C1 Class E 12-15-2010...... Baa2* $ 1,506,603 $ 1,371,045
1,511,023 GS Mortgage Securities Corp. II Protective
Life, 7.02% Ser 1996-PL Class A1
2-15-2027.................................. Aaa* 1,485,624 1,479,850
860,000 J.P. Morgan Commercial Mortgage Finance
Corp., 7.48% Variable Rate Ser 1997-C4
Class B 12-26-2028 AA 866,288 850,927
366,671 Merrill Lynch Mortgage Investors, Inc., 6.91%
Variable Rate Ser 1995-C2 Class A1
6-15-2021.................................. Aaa* 371,662 364,799
1,600,000 Merrill Lynch Mortgage Investors, Inc., 7.42%
Ser 1996-C1 Class B 4-25-2028.............. AA 1,602,418 1,583,568
534,257 Merrill Lynch Mortgage Investors, Inc., 7.47%
Variable Rate Ser 1995-C3 Class A1
12-26-2025................................. AAA 539,114 529,710
1,200,000 Midland Realty Acceptance Corp., 7.73%
Variable Rate Ser 1996-C1 Class B
8-25-2028.................................. AA 1,211,674 1,206,744
1,000,000 Mortgage Capital Funding, Inc., 7.90% Ser
1996-MC1 Class B 2-15-2006................. AA+ 1,007,423 1,021,000
------------ ------------
8,590,806 8,407,643
------------ ------------
FINANCIAL SERVICES - 0.46%
3,000,000 Standard Credit Card Master Trust, 8.45%
1-7-2007................................... A 3,176,153 3,129,426
</TABLE>
43
<PAGE>
FORTIS SERIES FUND, INC.
ASSET ALLOCATION SERIES (CONTINUED)
Schedule of Investments
December 31, 1999
ASSET BACKED SECURITIES - 2.83%-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
----------- ----------- ------------ ------------
<C> <S> <C> <C> <C>
HOUSING - 0.43%
$ 500,000 Money Store Home Improvement Trust, 7.41% Ser
1997-1 Class M1 5-15-2017.................. AA $ 501,908 $ 497,695
2,500,000 Money Store Residential Trust, 7.085% Ser
1997-I Class M1 7-15-2016.................. AA 2,499,634 2,398,475
------------ ------------
3,001,542 2,896,170
------------ ------------
MANUFACTURED HOMES - 0.21%
1,500,000 Green Tree Financial Corp., 7.54% Ser 1997-2
Class M1 4-15-2028......................... Aa3* 1,542,130 1,439,355
------------ ------------
MISCELLANEOUS - 0.01%
76,124 Fifth Third Auto Grantor Trust, 6.70% Ser
1996-B Class B 3-15-2002................... A 76,100 76,198
------------ ------------
MULTI-FAMILY LOANS - 0.29%
1,500,000 DLJ Mortgage Acceptance Corp., 8.80%
Multifamily Mtg Pass Thru Certificate Ser
1993-12 Class B1 9-18-2003................. BBB** 1,473,750 1,504,950
566,336 Fund America Structured Transactions, L.P.,
Collateralized Note, 8.34% Ser 1996-1
Class A Principal Only 1-1-2033 (f)(h)..... Baa3* 419,395 466,077
------------ ------------
1,893,145 1,971,027
------------ ------------
WHOLE LOAN RESIDENTIAL - 0.19%
579,558 Blackrock Capital Finance L.P., 7.75% Ser
97-R1 Class A1 3-25-2037 (e)............... Aaa* 584,836 574,125
767,744 Mid-State Trust, 7.54% Ser 6 Class A3
7-1-2035................................... AA 767,270 744,950
------------ ------------
1,352,106 1,319,075
------------ ------------
TOTAL ASSET BACKED SECURITIES................ $ 19,631,982 $ 19,238,894
============ ============
</TABLE>
CORPORATE BONDS-INVESTMENT GRADE - 15.31%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
----------- ----------- ------------ ------------
<C> <S> <C> <C> <C>
AEROSPACE AND EQUIPMENT - 0.41%
$1,500,000 Lockheed Martin Corp., 7.65% Deb 5-1-2016.... BBB- $ 1,508,086 $ 1,395,745
1,500,000 Raytheon Co., 5.70% Note 11-1-2003........... BBB- 1,505,218 1,407,556
------------ ------------
3,013,304 2,803,301
------------ ------------
AGRICULTURE - 0.19%
1,500,000 Archer-Daniels-Midland, 6.625% Deb
5-1-2029................................... AA- 1,492,854 1,287,012
------------ ------------
AIR FREIGHT - 0.21%
1,446,516 Federal Express, 7.50% Pass Thru Certificate
Ser 1997-A 1-15-2018....................... AAA 1,446,516 1,431,183
------------ ------------
AIRLINES - 0.18%
750,000 Delta Air Lines, 6.65% Medium Term Note
3-15-2004.................................. BBB- 749,512 716,293
500,000 Delta Air Lines, Inc., 7.70% Note 12-15-2005
(f)........................................ BBB- 498,847 491,738
------------ ------------
1,248,359 1,208,031
------------ ------------
AUTOMOBILE AND MOTOR VEHICLE PARTS - 0.37%
1,500,000 Dana Corp., 7.00% Note 3-1-2029.............. A- 1,482,274 1,315,770
1,250,000 TRW, Inc., 6.50% Sr Note 6-1-2002............ BBB 1,238,912 1,227,034
------------ ------------
2,721,186 2,542,804
------------ ------------
AUTOMOBILE MANUFACTURERS - 0.19%
1,500,000 Ford Motor Co., 6.375% 2-1-2029.............. A+ 1,452,555 1,261,773
------------ ------------
BANKS - 2.03%
1,250,000 Bank Austria AG, 7.25% Sub Note 2-15-2017
(f)........................................ AA+ 1,247,796 1,168,887
1,000,000 BankAmerica Corp., 6.20% Sub Note
2-15-2006.................................. A 950,454 938,782
1,500,000 Citigroup, Inc., 6.20% Sr Note 3-15-2009..... AA- 1,495,724 1,376,196
1,500,000 Keycorp Capital II, 6.875% Bond 3-17-2029.... BBB 1,482,326 1,260,217
500,000 LB Baden-Wuerttemberg, 7.625% Yankee Sub Note
2-1-2023................................... AAA 563,768 489,506
</TABLE>
44
<PAGE>
CORPORATE BONDS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
----------- ----------- ------------ ------------
<C> <S> <C> <C> <C>
$1,500,000 Mellon Financial Co., 6.375% Sub Note
2-15-2010.................................. A $ 1,505,931 $ 1,367,476
1,250,000 National City Corp., 6.875% Sub Note
5-15-2019.................................. A- 1,247,835 1,121,064
1,500,000 NBD Bancorp, 7.125% Sub Note 5-15-2007....... A 1,483,828 1,448,379
1,500,000 Providian National Bank, 6.75% Sr Note
3-15-2002.................................. Baa3* 1,499,257 1,462,402
1,500,000 St. Paul Bancorp, Inc., 7.125% Sr Note
2-15-2004.................................. BBB 1,495,507 1,461,469
750,000 Swiss Bank Corp., 7.375% Sub Note
6-15-2017.................................. AA 787,302 713,923
1,000,000 Textron Financial Corp., 7.125% Note
12-9-2004.................................. A- 995,013 987,960
------------ ------------
14,754,741 13,796,261
------------ ------------
BEVERAGE - 0.40%
1,500,000 Coca-Cola Bottling Co., 6.375% Deb
5-1-2009................................... BBB 1,490,677 1,355,365
1,500,000 Pepsi Bottling Group, Inc., 7.00% 3-1-2029... A- 1,489,886 1,353,993
------------ ------------
2,980,563 2,709,358
------------ ------------
BROKERAGE AND INVESTMENT - 0.81%
1,500,000 Bear Stearns Capital Trust, 7.00% Variable
Rate 1-15-2027............................. BBB 1,499,158 1,472,781
1,250,000 Goldman Sachs Group, Inc., 6.50% 2-25-2009
(e)........................................ A+ 1,250,000 1,152,391
1,000,000 Goldman Sachs Group, Inc., 6.65% 5-15-2009... A+ 998,080 931,590
1,000,000 Lehman Brothers Holdings, 7.875% Note
11-1-2009.................................. A 1,021,960 998,022
1,000,000 Paine Webber Group, Inc., 7.625% Note
12-1-2009.................................. BBB+ 996,430 974,205
------------ ------------
5,765,628 5,528,989
------------ ------------
CABLE TELEVISION - 0.64%
1,000,000 Comcast Cable Communications, 8.375% Note
5-1-2007................................... BBB- 1,120,640 1,033,677
1,000,000 Cox Communications, Inc., 6.40% Note
8-1-2008................................... A- 1,023,051 920,791
1,000,000 Time Warner, Inc., 6.875% Deb 6-15-2018...... BBB 1,012,851 899,879
1,500,000 Viacom, Inc., 7.625% Deb 1-15-2016........... BBB- 1,626,711 1,467,847
------------ ------------
4,783,253 4,322,194
------------ ------------
CAPTIVE AUTO FINANCE - 0.28%
1,250,000 General Motors Acceptance Corp., 6.15% Bond
4-5-2007................................... A 1,246,095 1,159,315
750,000 Toyota Motor Credit, 5.625% Global Note
11-13-2003................................. AAA 749,026 714,511
------------ ------------
1,995,121 1,873,826
------------ ------------
CHEMICALS - 0.11%
750,000 Equistar Chemicals, L.P., 8.75% Sr Note
2-15-2009.................................. BBB- 785,746 739,073
------------ ------------
CONSUMER FINANCE - 0.49%
1,000,000 Aristar, Inc., 7.25% Sr Note 6-15-2006....... A- 996,333 980,294
2,500,000 Household Finance Corp., 6.00% Note
5-1-2004................................... A 2,499,515 2,373,847
------------ ------------
3,495,848 3,354,141
------------ ------------
CONSUMER GOODS - 0.40%
2,750,000 Proctor & Gamble Co., 6.875% Bond
9-15-2009.................................. AA 2,752,926 2,689,140
------------ ------------
DIVERSIFIED FINANCE - 0.14%
1,000,000 Finova Capital Corp., 7.625% Sr Note
9-21-2009.................................. A- 993,585 983,433
------------ ------------
ELECTRONIC-MISCELLANEOUS - 0.07%
500,000 Sony Corp., 6.125% Global Bond 3-4-2003...... A+ 499,290 488,703
------------ ------------
ENERGY - 0.10%
750,000 NGC Corp. Capital Trust, 8.316% Deb
6-1-2027................................... BBB- 750,000 662,320
------------ ------------
FOOD - 0.60%
1,250,000 Ahold Finance USA, Inc., 6.25% Deb
5-1-2009................................... A 1,240,257 1,133,991
1,000,000 Fred Meyer, Inc., 7.45% Sr Note 3-1-2008..... BBB- 1,059,336 971,367
1,000,000 Kroger Co., 8.15% Sr Note 7-15-2006.......... BBB- 1,021,161 1,021,403
1,000,000 Safeway, Inc., 6.05% Note 11-15-2003......... BBB 998,628 955,543
------------ ------------
4,319,382 4,082,304
------------ ------------
</TABLE>
45
<PAGE>
FORTIS SERIES FUND, INC.
ASSET ALLOCATION SERIES (CONTINUED)
Schedule of Investments
December 31, 1999
CORPORATE BONDS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
----------- ----------- ------------ ------------
<C> <S> <C> <C> <C>
FOOD SERVICE - 0.09%
$ 750,000 Sysco Corp., 6.50% Deb 8-1-2028.............. AA- $ 753,715 $ 644,117
------------ ------------
FOREIGN - GOVERNMENT - 0.91%
1,000,000 British Columbia (Province of), 6.50% Yankee
Bond 1-15-2026............................. AA- 1,023,232 885,630
1,000,000 Korea (Republic of), 8.875% Global Bond
4-15-2008.................................. BBB 1,051,508 1,050,000
1,500,000 Ontario (Province of), 5.50% 10-1-2008....... AA- 1,491,983 1,332,960
1,500,000 Ontario (Province of), 7.375% 1-27-2003...... AA- 1,585,215 1,515,975
1,000,000 Poland (Republic of), 7.125% Yankee Note
7-1-2004................................... BBB 996,444 990,000
500,000 Quebec (Province of), 5.75% 2-15-2009........ A+ 498,777 444,755
------------ ------------
6,647,159 6,219,320
------------ ------------
FOREIGN - GOVERNMENT AGENCIES - 0.07%
500,000 Korea Development Bank, 7.125% Global Note
4-22-2004.................................. BBB 496,782 487,439
------------ ------------
FOREST PRODUCTS - 0.14%
1,000,000 Fort James Corp., 6.50% Sr Note 9-15-2002.... BBB- 999,287 980,704
------------ ------------
INDUSTRIAL - 0.19%
1,500,000 Tyco International Group S.A., 6.875% Yankee
Bond 1-15-2029............................. A- 1,513,362 1,277,520
------------ ------------
INSURANCE - 0.63%
500,000 American General Corp., 6.625% Sr Note
2-15-2029.................................. AA- 476,759 426,449
1,250,000 Prudential Insurance Co., 6.375% Sr Note
7-23-2006 (e).............................. A+ 1,245,283 1,165,481
1,500,000 ReliaStar Financial Corp., 6.625% Note
9-15-2003.................................. A 1,540,620 1,452,353
1,250,000 ReliaStar Financial Corp., 8.00% Note
10-30-2006................................. A 1,245,599 1,255,158
------------ ------------
4,508,261 4,299,441
------------ ------------
LEASING - 0.35%
1,500,000 Comdisco, Inc., 5.95% Note 4-30-2002......... BBB+ 1,499,882 1,445,051
1,000,000 Ryder System, Inc., 6.60% Note 11-15-2005.... BBB+ 999,705 932,533
------------ ------------
2,499,587 2,377,584
------------ ------------
LEISURE TIME-AMUSEMENTS - 0.18%
1,250,000 Park Place Entertainment, 8.50% Sr Note
11-15-2006................................. BBB- 1,237,904 1,232,394
------------ ------------
MACHINERY - 0.11%
750,000 Caterpillar, Inc., 7.25% Deb 9-15-2009....... A+ 748,611 736,329
------------ ------------
MISCELLANEOUS - 0.04%
250,000 New York (City of), 10.00% General Obligation
Taxable Bond Ser D 8-1-2005................ A- 251,756 270,783
------------ ------------
NATURAL GAS TRANSMISSIONS - 0.50%
1,000,000 CMS Panhandle Holding Co., 7.00% Sr Note
7-15-2029.................................. BBB- 991,516 868,423
750,000 Enron Corp., 6.95% Note 7-15-2028............ BBB+ 677,712 658,907
1,250,000 Tennessee Gas Pipeline, 7.50% Deb 4-1-2017... BBB+ 1,231,351 1,178,794
750,000 Trans-Canada Pipelines Ltd., 6.49% Yankee
Bond 1-21-2009............................. A- 755,017 689,784
------------ ------------
3,655,596 3,395,908
------------ ------------
OIL-CRUDE PETROLEUM AND GAS - 0.45%
750,000 Apache Finance Canada, 7.75% Deb
12-15-2029................................. BBB+ 742,331 723,788
1,000,000 Chevron Corp., 6.625% Note 10-1-2004......... AA 996,467 985,720
1,500,000 Conoco Inc., 6.95% 4-15-2029................. A- 1,401,184 1,348,881
------------ ------------
3,139,982 3,058,389
------------ ------------
OIL-EQUIPMENT WELLS AND SERVICES - 0.20%
500,000 Petroleum Geo-Services, 6.25% Yankee Bond
11-19-2003................................. BBB 498,240 475,965
1,000,000 Petroleum Geo-Services, 7.125% Yankee Sr Note
3-30-2028.................................. BBB 997,153 872,306
------------ ------------
1,495,393 1,348,271
------------ ------------
OIL-REFINING - 0.16%
1,000,000 Texaco Capital, Inc., 8.628% Deb 6-30-2010... A+ 1,103,694 1,087,118
------------ ------------
</TABLE>
46
<PAGE>
CORPORATE BONDS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
----------- ----------- ------------ ------------
<C> <S> <C> <C> <C>
RAILROAD AND RAILROAD EQUIPMENT - 0.07%
$ 500,000 CSX Corp., 7.90% Deb 5-1-2017................ BBB $ 499,728 $ 495,991
------------ ------------
RETAIL-DEPARTMENT STORES - 0.56%
2,000,000 Dayton Hudson Corp., 5.875% Note 11-1-2008... A- 1,945,713 1,805,570
1,250,000 Federated Department Stores, 6.30% Note
4-1-2009................................... BBB+ 1,246,785 1,134,203
1,000,000 Saks, Inc., 7.375% Deb 2-15-2019............. Baa3* 915,363 845,598
------------ ------------
4,107,861 3,785,371
------------ ------------
SUPRA-NATIONAL - 0.18%
1,250,000 Corp Andina de Fomento, 7.10% Yankee Bond
2-1-2003................................... A 1,249,587 1,232,388
------------ ------------
TECHNOLOGY - 0.16%
1,250,000 Lucent Technologies, Inc., 6.45% 3-15-2029... A 1,243,323 1,088,745
------------ ------------
TELECOMMUNICATIONS - 1.29%
1,250,000 360 Communications ALLTEL Corp., 7.50% Sr
Note 3-1-2006.............................. A 1,247,975 1,258,244
1,250,000 AirTouch Communications, 6.65% Note
5-1-2008................................... A 1,269,930 1,178,285
1,500,000 ALLTEL Corp., 6.80% Deb 5-1-2029............. A- 1,490,737 1,304,417
500,000 AT&T Canada, Inc., 7.65% Note 9-15-2006...... BBB 498,854 497,819
1,750,000 AT&T Corp., 6.00% Note 3-15-2009............. AA- 1,746,125 1,594,026
1,500,000 Sprint Capital Corp., 5.875% Deb 5-1-2004.... BBB+ 1,493,402 1,422,431
1,500,000 US West Communications, 7.20% Bond 11-1-2004
(f)........................................ A+ 1,499,242 1,491,153
------------ ------------
9,246,265 8,746,375
------------ ------------
TELEPHONE SERVICES - 0.39%
1,000,000 Century Telephone Enterprises, Inc., 6.15% Sr
Note 1-15-2005............................. BBB+ 998,843 938,239
1,000,000 GTE Corp., 7.51% Note 4-1-2009............... A 993,158 1,005,769
750,000 Telecomunicaciones de Puerto Rico, 6.65% Note
5-15-2006.................................. BBB 749,743 705,435
------------ ------------
2,741,744 2,649,443
------------ ------------
UTILITIES-ELECTRIC - 1.02%
1,000,000 Alabama Power Co., 7.125% Sr Note
10-1-2007.................................. A 996,535 988,638
750,000 Duke Capital Corp., 8.00% Sr Note
10-1-2019.................................. A 760,126 755,311
1,000,000 Duke Energy Corp., 6.00% Sr Note 12-1-2028... A+ 976,421 787,077
1,500,000 Madison Gas & Electric, 6.02% Sr Note
9-15-2008.................................. AA- 1,500,000 1,336,043
756,098 Niagara Mohawk Power, 7.25% Sr Note
10-1-2002.................................. BBB- 753,153 753,576
1,000,000 Public Service Company of New Mexico, 7.50%
8-1-2018................................... BBB- 954,034 925,954
1,500,000 TXU Electric Capital V, 8.175% Deb
1-30-2037.................................. BBB- 1,513,081 1,398,912
------------ ------------
7,453,350 6,945,511
------------ ------------
TOTAL CORPORATE BONDS - INVESTMENT GRADE..... $110,843,804 $104,122,987
============ ============
</TABLE>
CORPORATE BONDS-NON-INVESTMENT GRADE - 6.65%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
----------- ----------- ------------ ------------
<C> <S> <C> <C> <C>
AUTOMOBILE AND MOTOR VEHICLE PARTS - 0.29%
$1,000,000 Holley Performance Products, Inc., 12.25% Sr
Note 9-15-2007 (f)......................... B+ $ 968,730 $ 955,000
1,000,000 Tenneco Automotive, Inc., 11.625% Sr Sub Note
10-15-2009 (f)............................. B+ 1,001,848 1,020,000
------------ ------------
1,970,578 1,975,000
------------ ------------
BANKS - 0.22%
1,500,000 Sovereign Bancorp, 10.25% Sr Note
5-15-2004.................................. BB+ 1,500,000 1,515,000
------------ ------------
BROADCASTING - 0.15%
1,000,000 Sinclair Broadcasting Group, Inc., 10.00% Sr
Sub Note 9-30-2005......................... B 1,000,000 990,000
------------ ------------
</TABLE>
47
<PAGE>
FORTIS SERIES FUND, INC.
ASSET ALLOCATION SERIES (CONTINUED)
Schedule of Investments
December 31, 1999
CORPORATE BONDS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
----------- ----------- ------------ ------------
<C> <S> <C> <C> <C>
BUILDING EQUIPMENT - 0.17%
$1,150,000 Better Minerals & Aggregates, 13.00% Sr Sub
Note 9-15-2009 (f)......................... B- $ 1,152,725 $ 1,155,750
------------ ------------
CABLE TELEVISION - 1.56%
2,000,000 Adelphia Communications, 9.375% Sr Note
11-15-2009................................. B+ 1,984,203 1,960,000
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
2,750,000 Charter Communications Holdings LLC, 9.92% Sr
Disc Note 4-1-2011 (Zero coupon through
4-1-2004, thereafter 9.92%) (g)............ B+ 1,839,111 1,612,187
1,000,000 CSC Holdings, Inc., 10.50% Sr Sub Deb
5-15-2016.................................. BB- 1,014,113 1,110,000
500,000 Insight Midwest, 9.75% Sr Note 10-1-2009
(f)........................................ B+ 500,951 516,250
1,750,000 Mediacom LLC/Capital Corp., 7.875% Sr Note
2-15-2011.................................. B+ 1,734,208 1,540,000
750,000 Telewest Communication plc, 8.62% Sr Disc
Note 4-15-2009 (Zero coupon through
4-15-2004, thereafter 9.25%) (f)(g)........ B+ 533,665 472,500
1,750,000 United International Holdings, 12.15% Sr Disc
Note 2-15-2008 (Zero coupon through
2-15-2003, thereafter 10.75%) (g).......... B 1,167,825 1,120,000
2,250,000 United Pan European Communications N.V.,
11.25% Sr Note 11-1-2009 (f)............... B- 2,237,105 2,309,063
------------ ------------
11,813,912 10,640,010
------------ ------------
CHEMICALS - 0.11%
750,000 Lyondell Chemical Co., 9.875% Sr Secured Note
Ser B 5-1-2007............................. BB 753,768 765,000
------------ ------------
ENTERTAINMENT - 0.10%
750,000 Circus Circus (Mandalay Resort Group), 7.625%
Sr Sub Deb 7-15-2013....................... BB+ 645,553 652,500
------------ ------------
FOOD-MISCELLANEOUS - 0.10%
750,000 Luigino's, Inc., 10.00% Sr Sub Note
2-1-2006................................... B- 757,272 648,750
------------ ------------
FOREIGN - GOVERNMENT - 0.23%
800,000 Brazil (Republic of), 11.625% Global Bond
4-15-2004.................................. B+ 793,337 800,000
1,000,000 United Mexican States, 6.25% Secured Note Ser
W-B 12-31-2019............................. BB 759,073 785,000
------------ ------------
1,552,410 1,585,000
------------ ------------
HEALTH CARE SERVICES - 0.35%
500,000 Concentra Operating Corp., 13.00% Sr Sub Note
8-15-2009 (f).............................. B- 501,741 455,000
1,000,000 Triad Hospitals Holdings, 11.00% Sr Sub Note
5-15-2009.................................. B- 1,009,028 1,035,000
850,000 Unilab Finance Corp., 12.75% Sr Sub Note
10-1-2009 (f).............................. B- 842,018 879,750
------------ ------------
2,352,787 2,369,750
------------ ------------
METALS-MINING AND MISCELLANEOUS - 0.07%
500,000 AK Steel Corp., 9.125% Sr Note 12-15-2006.... BB 500,264 508,750
------------ ------------
OIL-CRUDE PETROLEUM AND GAS - 0.21%
650,000 Ocean Energy, Inc., 8.875% Sr Sub Note Ser B
7-15-2007.................................. BB- 653,934 643,500
750,000 Swift Energy Co., 10.25% Sr Sub Note
8-1-2009................................... B- 759,136 755,625
------------ ------------
1,413,070 1,399,125
------------ ------------
PAPER - 0.15%
1,000,000 Packaging Corp. of America, 9.625% Sr Sub
Note 4-1-2009.............................. B 1,030,012 1,021,250
------------ ------------
RESTAURANTS AND FRANCHISING - 0.15%
1,000,000 Sbarro, Inc., 11.00% Sr Note 9-15-2009 (f)... BB- 987,301 1,040,000
------------ ------------
RETAIL-DEPARTMENT STORES - 0.09%
700,000 Kmart Corp., 7.95% Deb 2-1-2023.............. BB+ 613,513 608,307
------------ ------------
RETAIL-GROCERY - 0.11%
750,000 Stater Brothers Holdings, 10.75% Sr Note
8-15-2006.................................. B+ 753,326 759,375
------------ ------------
TELECOMMUNICATIONS - 1.84%
1,000,000 Global Crossing Holdings Ltd., 9.50% Sr Note
11-15-2009 (f)............................. BB 986,043 985,000
1,000,000 Hyperion Telecommunications, 12.25% Sr Note
Ser B 9-1-2004............................. BB- 1,076,486 1,077,500
1,250,000 Intermedia Communications, Inc., 8.50% Sr
Note 1-15-2008............................. B 1,184,849 1,143,750
500,000 McleodUSA, Inc., 8.125% Sr Note 2-15-2009.... B+ 499,647 466,250
</TABLE>
48
<PAGE>
CORPORATE BONDS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
----------- ----------- ------------ ------------
<C> <S> <C> <C> <C>
$ 750,000 Metromedia Fiber Network, Inc., 10.00% Sr
Note 12-15-2009............................ B+ $ 744,806 $ 768,750
750,000 Microcell Telecommunications, Inc., 11.80%
Disc Note 6-1-2006 (Zero coupon through
12-1-2001, thereafter 14.00%) (g).......... B3* 623,230 661,875
1,100,000 Nextel Communications, Inc., 10.19% Sr Disc
Note 9-15-2007 (Zero coupon through
9-15-2002, thereafter 10.65%) (g).......... B 853,821 819,500
1,000,000 Nextel Communications, Inc., 9.375% Sr Note
11-15-2009 (e)............................. B 993,185 980,000
1,000,000 Nextlink Communications, 10.50% Sr Note
12-1-2009 (f).............................. B 1,000,966 1,015,000
1,000,000 Nextlink Communications, 12.125% Sr Disc Note
12-1-2009 (Zero coupon through 12-1-2004,
thereafter 12.125%) (f)(g)................. B 561,432 582,500
500,000 Omnipoint Corp., 11.50% Sr Note 9-15-2009
(e)........................................ CCC+ 501,179 537,500
1,000,000 PSInet, Inc., 11.00% Sr Note 8-1-2009........ B- 983,346 1,030,000
1,000,000 RCN Corp., 10.125% Sr Note 1-15-2010......... B- 1,000,205 995,000
1,000,000 Splitrock Services, Inc., 11.75% Sr Note
7-15-2008.................................. NR 1,007,157 935,000
500,000 Winstar Communications, Inc., 9.83% Sr Disc
Note 10-15-2005 (Zero coupon through
10-15-2000, thereafter 14.00%) (g)......... CCC+ 496,076 485,000
------------ ------------
12,512,428 12,482,625
------------ ------------
TELEPHONE SERVICES - 0.59%
750,000 Alaska Communications SY, 9.375% Sr Sub Note
5-15-2009.................................. B+ 753,584 723,750
1,250,000 Level 3 Communications, Inc., 9.125% Sr Note
5-1-2008................................... B 1,226,206 1,178,125
2,000,000 Williams Communications Group, Inc., 10.875%
Sr Note 10-1-2009.......................... BB- 1,989,402 2,090,000
------------ ------------
3,969,192 3,991,875
------------ ------------
UTILITIES-ELECTRIC - 0.16%
1,100,000 AES Corp., 9.50% Sr Note 6-1-2009............ BB 1,105,713 1,109,625
------------ ------------
TOTAL CORPORATE BONDS - NON-INVESTMENT
GRADE...................................... $ 46,383,824 $ 45,217,692
============ ============
</TABLE>
U.S. GOVERNMENT SECURITIES - 9.09%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Cost (b) Value (c)
----------- ------------ ------------
<C> <S> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 2.78%
MORTGAGE BACKED SECURITIES:
$7,314,654 6.00% 2013-2014.............................. $ 7,080,387 $ 6,943,589
730,566 6.30% 2008................................... 731,411 687,881
7,000,000 6.50% 2014 (i)............................... 6,867,734 6,792,184
1,916,331 6.63% 2005................................... 1,962,384 1,861,844
1,013,133 7.00% 2011................................... 995,842 1,002,099
1,151,779 7.50% 2022-2027.............................. 1,188,782 1,139,715
455,866 8.00% 2025................................... 462,775 459,717
19,934 9.00% 2021................................... 19,890 20,760
------------ ------------
TOTAL FEDERAL NATIONAL MORTGAGE
ASSOCIATION................................ 19,309,205 18,907,789
------------ ------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -
0.52%
MORTGAGE BACKED SECURITIES:
1,824,322 7.50% 2023................................... 1,738,237 1,805,318
1,608,745 9.00% 2022-2023.............................. 1,661,030 1,683,988
79,713 9.50% 2020................................... 79,514 84,876
------------ ------------
TOTAL GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION................................ 3,478,781 3,574,182
------------ ------------
U.S. TREASURY SECURITIES - 5.79%
BONDS:
27,150,000 6.53% 2018 Zero Coupon Strip (g)............. 8,022,942 7,550,388
5,200,000 5.25% 2028-2029.............................. 4,450,301 4,293,878
------------ ------------
12,473,243 11,844,266
------------ ------------
</TABLE>
49
<PAGE>
FORTIS SERIES FUND, INC.
ASSET ALLOCATION SERIES (CONTINUED)
Schedule of Investments
December 31, 1999
U.S. GOVERNMENT SECURITIES - 9.09%-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Cost (b) Value (c)
----------- ------------ ------------
<C> <S> <C> <C>
NOTES:
$4,180,000 5.50% 2003................................... $ 4,110,023 $ 4,067,662
9,500,000 5.875% 2004.................................. 9,338,281 9,315,937
2,750,000 6.00% 2009................................... 2,698,328 2,664,062
11,750,000 6.125% 2007.................................. 11,704,900 11,452,584
------------ ------------
27,851,532 27,500,245
------------ ------------
TOTAL U.S. TREASURY SECURITIES............... 40,324,775 39,344,511
------------ ------------
TOTAL U.S. GOVERNMENT SECURITIES............. 63,112,761 61,826,482
============ ============
TOTAL LONG-TERM INVESTMENTS.................. $540,505,328 $669,556,728
============ ============
</TABLE>
SHORT-TERM INVESTMENTS - 3.10%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
----------- ------------
<C> <S> <C>
BANKS - 3.10%
$21,088,289 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 5.30%........ $ 21,088,289
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$561,593,617)(b)........................... $690,645,017
============
</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 December 31, 1999, the cost of securities for federal income tax
purposes was $561,870,082, and the aggregate gross unrealized appreciation
and depreciation based on that cost was:
<TABLE>
<CAPTION>
Unrealized appreciation. 143,499,205
<S> <C>
Unrealized depreciation..................................... (14,724,270)
- -------------------------------------------------------------------------
Net unrealized appreciation................................. $128,774,935
- -------------------------------------------------------------------------
</TABLE>
(c) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets. Market value of investments in foreign
securities represents 6.80% of net assets as of December 31, 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>
1996 1,000 Adelphia Business Solutions, Inc. (Warrants) - 144A $ 4,022
1997 1,008,177 Australis Media Ltd. due 2003 802,731
1997 579,558 Blackrock Capital Finance L.P. due 2037 - 144A 584,836
1999 1,250,000 Goldman Sachs Group due 2009 - 144A 1,250,000
1997 250 Highwaymaster Communications, Inc. (Warrants) - 144A 4,547
1999 1,000,000 Nextel Communications, Inc. due 2009 - 144A 993,185
1999 500,000 Omnipoint Corp. due 2009 - 144A 501,179
1998 1,250,000 Prudential Insurance Co. due 2006 - 144A 1,245,283
</TABLE>
The aggregate value of these securities at December 31, 1999, was
$4,585,132, which represents .67% 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 December 31, 1999, was $15,003,668, which represents
2.21% 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 December 31, 1999, based upon estimated future cash flows. This
security has been identified by portfolio management as a liquid security.
The aggregate value of this security at December 31, 1999, was $466,077,
which represents .07% of total net assets.
(i) The cost of securities purchased on a when-issued basis at December 31,
1999, was $2,450,000.
* Moody's Rating
** Duff & Phelps Rating
50
<PAGE>
FORTIS SERIES FUND, INC.
VALUE SERIES
Schedule of Investments
December 31, 1999
COMMON STOCKS-97.05%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ----------- -----------
<C> <S> <C> <C>
AEROSPACE AND EQUIPMENT-2.26%
39,000 Boeing Co.................................... $ 1,733,988 $ 1,620,937
8,000 United Technologies Corp..................... 436,505 520,000
----------- -----------
2,170,493 2,140,937
----------- -----------
APPAREL-1.75%
61,000 Jones Apparel Group, Inc. (a)................ 1,684,874 1,654,625
----------- -----------
AUTOMOBILE MANUFACTURERS-1.81%
32,000 Ford Motor Co................................ 1,800,765 1,710,000
----------- -----------
BANKS-5.97%
47,800 Chase Manhattan Corp......................... 3,433,761 3,713,462
49,000 UnionBanCal Corp............................. 2,148,697 1,932,437
----------- -----------
5,582,458 5,645,899
----------- -----------
BEVERAGE-0.94%
12,500 Anheuser-Busch Companies, Inc................ 923,102 885,937
----------- -----------
BROADCASTING-3.93%
46,000 AT&T Corp. -- LIBERTY MEDIA GROUP (A)........ 1,959,545 2,610,500
20,000 USA Networks, Inc. (a)....................... 863,204 1,105,000
----------- -----------
2,822,749 3,715,500
----------- -----------
BUSINESS SERVICES-5.80%
16,500 Avis Rent A Car, Inc. (a).................... 478,528 421,781
24,000 Cendant Corp. (a)............................ 439,726 637,500
56,200 First Data Corp.............................. 2,551,865 2,771,362
95,000 Sensormatic Electronics Corp. (a)............ 1,185,896 1,656,562
----------- -----------
4,656,015 5,487,205
----------- -----------
CHEMICALS-1.06%
7,500 Dow Chemical Co.............................. 912,126 1,002,188
----------- -----------
COMPUTER-HARDWARE-4.15%
17,000 Apple Computer, Inc. (a)..................... 735,308 1,747,813
19,100 Hewlett-Packard Co........................... 954,677 2,176,206
----------- -----------
1,689,985 3,924,019
----------- -----------
COMPUTER-SOFTWARE-3.33%
54,000 Affiliated Computer Services, Inc. (a)....... 2,037,988 2,484,000
9,500 Computer Associates International, Inc. 464,571 664,406
----------- -----------
2,502,559 3,148,406
----------- -----------
ELECTRONIC-SEMICONDUCTOR AND CAPACITOR-1.91%
15,600 Amkor Technology, Inc. (a)................... 379,762 440,700
32,000 National Semiconductor Corp. (a)............. 1,231,653 1,370,000
----------- -----------
1,611,415 1,810,700
----------- -----------
FINANCIAL SERVICES-10.76%
18,000 Ambac Financial Group, Inc................... 981,100 939,375
85,375 Citigroup, Inc............................... 2,893,616 4,743,648
19,000 Fannie Mae................................... 1,235,658 1,186,313
16,000 J.P. Morgan & Co., Inc....................... 2,046,897 2,026,000
9,000 Morgan Stanley Dean Witter & Co.............. 798,019 1,284,750
----------- -----------
7,955,290 10,180,086
----------- -----------
HEALTH CARE SERVICES-7.32%
62,500 Columbia/HCA Healthcare Corp................. 1,347,777 1,832,031
92,500 Tenet Healthcare Corp. (a)................... 1,830,465 2,173,750
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ----------- -----------
<C> <S> <C> <C>
55,000 United HealthCare Corp....................... $ 3,006,566 $ 2,921,875
----------- -----------
6,184,808 6,927,656
----------- -----------
HOTEL AND GAMING-2.34%
25,000 Mandalay Resort Group (a).................... 466,498 503,125
136,500 Park Place Entertainment Corp. (a)........... 1,646,240 1,706,250
----------- -----------
2,112,738 2,209,375
----------- -----------
INSURANCE-7.65%
38,000 Aetna, Inc. (with rights).................... 2,444,601 2,120,875
13,000 American General Corp........................ 930,970 986,375
22,000 American International Group, Inc............ 2,193,700 2,378,750
41,500 MONY Group, Inc.............................. 1,195,407 1,211,281
11,000 PMI Group, Inc............................... 460,015 536,938
----------- -----------
7,224,693 7,234,219
----------- -----------
LEISURE TIME-AMUSEMENTS-0.60%
39,000 Hollywood Entertainment Corp. (a)............ 876,170 565,500
----------- -----------
MACHINERY-SPECIALTY-2.47%
45,500 Parker-Hannifin Corp......................... 2,124,278 2,334,719
----------- -----------
METALS-MINING AND MISCELLANEOUS-2.77%
29,000 Alcoa, Inc................................... 1,620,689 2,407,000
6,208 Transocean Sedco Forex, Inc.................. 203,032 209,132
----------- -----------
1,823,721 2,616,132
----------- -----------
OIL AND GAS FIELD SERVICES-7.71%
48,000 Halliburton Co............................... 1,818,409 1,932,000
47,000 Helmerich & Payne, Inc....................... 1,138,310 1,025,188
32,000 Schlumberger Ltd............................. 1,642,717 1,800,000
70,500 Tidewater, Inc............................... 2,304,496 2,538,000
----------- -----------
6,903,932 7,295,188
----------- -----------
OIL-CRUDE PETROLEUM AND GAS-1.74%
20,400 Exxon Mobil Corp............................. 1,460,704 1,643,475
----------- -----------
OIL-OFFSHORE DRILLING-2.68%
83,000 Diamond Offshore Drilling, Inc............... 2,718,659 2,536,688
----------- -----------
PRINTING-1.10%
9,500 Electronics for Imaging, Inc. (a)............ 441,253 552,188
11,500 Valassis Communications, Inc. (a)............ 432,181 485,875
----------- -----------
873,434 1,038,063
----------- -----------
PUBLISHING-2.47%
80,000 Reader's Digest Association, Inc. Class A.... 2,337,517 2,340,000
----------- -----------
RETAIL-DEPARTMENT STORES-3.02%
56,500 Federated Department Stores, Inc. (a)........ 2,501,904 2,856,781
----------- -----------
TELECOMMUNICATION EQUIPMENT-0.52%
15,500 ECI Telecom Ltd.............................. 548,820 490,188
----------- -----------
TELEPHONE SERVICES-2.45%
7,000 Bell Atlantic Corp........................... 405,462 430,938
10,500 BellSouth Corp............................... 442,861 491,531
26,250 MCI WorldCom, Inc. (a)....................... 1,542,580 1,392,891
----------- -----------
2,390,903 2,315,360
----------- -----------
TOBACCO-0.99%
40,500 Philip Morris Companies, Inc................. 1,661,911 939,094
----------- -----------
</TABLE>
51
<PAGE>
FORTIS SERIES FUND, INC.
VALUE SERIES (CONTINUED)
Schedule of Investments
December 31, 1999
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ----------- -----------
<C> <S> <C> <C>
UNIT INVESTMENT TRUST-4.19%
27,000 S & P 500 Depositary Receipt................. $ 3,856,028 $ 3,965,625
----------- -----------
UTILITIES-ELECTRIC-3.36%
91,500 Illinova Corp................................ 2,807,672 3,179,625
----------- -----------
TOTAL COMMON STOCKS.......................... $82,719,723 $91,793,190
=========== ===========
</TABLE>
SHORT-TERM INVESTMENTS-2.95%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
---------- -----------
<C> <S> <C>
BANKS-1.15%
$1,086,770 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 5.30%........ $ 1,086,770
-----------
DIVERSIFIED FINANCE-1.80%
1,700,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.01%...................... 1,700,000
-----------
TOTAL SHORT-TERM INVESTMENTS................. 2,786,770
-----------
TOTAL INVESTMENTS IN SECURITIES (COST:
$85,506,493)(B)............................ $94,579,960
===========
</TABLE>
(a) Presently not paying dividend income.
(b) At December 31, 1999, the cost of securities for federal income tax
purposes was $85,829,161 and the aggregate gross unrealized appreciation
and depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $11,664,454
Unrealized depreciation..................................... (2,913,655)
- -------------------------------------------------------------------------
Net unrealized appreciation................................. $ 8,750,799
- -------------------------------------------------------------------------
</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 .52% of total net assets as of December 31, 1999.
52
<PAGE>
FORTIS SERIES FUND, INC.
GROWTH & INCOME SERIES
Schedule of Investments
December 31, 1999
COMMON STOCKS-76.06%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ------------ ------------
<C> <S> <C> <C>
ADVERTISING-PUBLIC RELATIONS - 2.95%
84,000 Interpublic Group of Companies, Inc.......... $ 3,241,950 $ 4,845,750
45,000 Omnicom Group, Inc........................... 1,934,535 4,500,000
------------ ------------
5,176,485 9,345,750
------------ ------------
AUTOMOBILE MANUFACTURERS - 0.66%
39,000 Ford Motor Co................................ 2,176,590 2,084,062
------------ ------------
BANKS - 3.12%
42,000 Chase Manhattan Corp......................... 3,283,770 3,262,875
55,000 Marshall & Ilsley Corp....................... 3,176,800 3,454,688
60,000 Northern Trust Corp.......................... 3,007,228 3,180,000
------------ ------------
9,467,798 9,897,563
------------ ------------
BEVERAGE - 1.09%
49,000 Anheuser-Busch Companies, Inc................ 3,193,378 3,472,875
------------ ------------
BUSINESS SERVICES - 2.48%
114,000 Automatic Data Processing, Inc............... 5,325,196 6,141,750
65,200 Infonet Services Corp. Class B (a).......... 1,418,772 1,711,500
------------ ------------
6,743,968 7,853,250
------------ ------------
COMPUTER-COMMUNICATION EQUIPMENT - 1.91%
130,000 Cabletron Systems, Inc. (a)................. 3,479,853 3,380,000
25,000 Cisco Systems, Inc. (a)..................... 2,423,188 2,678,125
------------ ------------
5,903,041 6,058,125
------------ ------------
COMPUTER-SOFTWARE - 4.34%
52,000 Electronic Data Systems Corp................. 2,751,824 3,480,750
88,000 Microsoft Corp. (a)......................... 8,435,376 10,274,000
------------ ------------
11,187,200 13,754,750
------------ ------------
CONSUMER GOODS - 1.35%
66,000 Colgate-Palmolive Co......................... 3,666,737 4,290,000
------------ ------------
COSMETICS AND SUNDRIES - 1.35%
130,000 Avon Products, Inc........................... 4,210,862 4,290,000
------------ ------------
DIVERSIFIED COMPANIES - 1.35%
43,600 Minnesota Mining and Manufacturing Co........ 4,104,383 4,267,350
------------ ------------
DRUGS - 5.00%
137,900 American Home Products Corp.................. 6,760,087 5,438,431
46,000 Bristol-Myers Squibb Co...................... 3,179,294 2,952,625
31,000 Eli Lilly & Co............................... 2,264,082 2,061,500
120,500 Pharmacia & Upjohn, Inc...................... 4,853,589 5,422,500
------------ ------------
17,057,052 15,875,056
------------ ------------
ELECTRIC-PRODUCTS - 0.53%
37,000 Molex, Inc. Class A......................... 1,594,744 1,674,250
------------ ------------
ELECTRICAL EQUIPMENT - 3.46%
71,000 General Electric Co.......................... 4,840,985 10,987,250
------------ ------------
ELECTRONIC-SEMICONDUCTOR AND CAPACITOR -
1.07%
35,000 Texas Instruments, Inc....................... 3,144,985 3,390,625
------------ ------------
FINANCIAL SERVICES - 4.37%
60,000 Citigroup, Inc............................... 2,991,036 3,333,750
37,000 J.P. Morgan & Co., Inc....................... 5,300,653 4,685,125
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ------------ ------------
<C> <S> <C> <C>
61,000 Marsh & McLennan Companies, Inc.............. $ 3,763,024 $ 5,836,938
------------ ------------
12,054,713 13,855,813
------------ ------------
FOOD - 3.38%
92,000 Quaker Oats Co............................... 4,759,626 6,037,500
118,000 Sysco Corp................................... 3,895,152 4,668,375
------------ ------------
8,654,778 10,705,875
------------ ------------
FREIGHT CARRIERS - 1.31%
60,300 United Parcel Service, Inc. Class B.......... 3,015,000 4,160,700
------------ ------------
HEALTH CARE SERVICES - 1.47%
159,000 Columbia/HCA Healthcare Corp................. 3,952,770 4,660,688
------------ ------------
INSURANCE - 3.86%
89,242 American International Group, Inc............ 3,508,301 9,649,291
65,000 Aon Corp..................................... 2,945,745 2,600,000
------------ ------------
6,454,046 12,249,291
------------ ------------
LEISURE TIME-AMUSEMENTS - 0.66%
72,000 Disney (Walt) Co............................. 2,017,469 2,106,000
------------ ------------
MEDIA - 0.72%
35,600 CBS Corp. (a)............................... 1,757,166 2,276,175
------------ ------------
NATURAL GAS TRANSMISSIONS - 2.71%
114,254 El Paso Energy Corp.......................... 1,836,879 4,434,483
94,000 Enron Corp................................... 1,952,213 4,171,250
------------ ------------
3,789,092 8,605,733
------------ ------------
OIL-CRUDE PETROLEUM AND GAS - 2.16%
44,000 BP Amoco plc ADR............................. 1,315,355 2,609,750
52,806 Exxon Mobil Corp............................. 2,991,218 4,254,183
------------ ------------
4,306,573 6,863,933
------------ ------------
OIL-REFINING - 0.68%
25,000 Atlantic Richfield Co........................ 2,286,055 2,162,500
------------ ------------
PRECISION INSTRUMENTS-TEST, RESEARCH - 0.98%
40,300 Agilent Technologies, Inc. (a).............. 1,209,000 3,115,694
------------ ------------
PUBLISHING - 4.22%
125,000 McGraw-Hill Companies, Inc................... 4,867,160 7,703,125
125,000 Reader's Digest Association, Inc.
Class A................................... 3,513,883 3,656,250
30,000 Times Mirror Co. Class A.................... 2,150,360 2,010,000
------------ ------------
10,531,403 13,369,375
------------ ------------
RETAIL-DISCOUNT STORES - 0.74%
34,000 Wal-Mart Stores, Inc......................... 1,997,415 2,350,250
------------ ------------
TELECOMMUNICATION
EQUIPMENT - 1.08%
15,000 Motorola, Inc................................ 1,573,832 2,208,750
12,000 Nortel Networks Corp......................... 708,418 1,212,000
------------ ------------
2,282,250 3,420,750
------------ ------------
TELECOMMUNICATIONS - 3.67%
46,000 Cable & Wireless plc ADR..................... 1,865,556 2,435,125
53,600 Corning, Inc................................. 4,685,702 6,911,050
46,185 Global Crossing Ltd. (a).................... 835,687 2,309,250
------------ ------------
7,386,945 11,655,425
------------ ------------
</TABLE>
53
<PAGE>
FORTIS SERIES FUND, INC.
GROWTH & INCOME SERIES (CONTINUED)
Schedule of Investments
December 31, 1999
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ------------ ------------
<C> <S> <C> <C>
TELEPHONE SERVICES - 10.87%
80,000 Alltel Corp.................................. $ 3,589,173 $ 6,615,000
56,000 AT&T Corp.................................... 3,207,053 2,842,000
60,000 Bell Atlantic Corp........................... 4,038,987 3,693,750
82,000 GTE Corp..................................... 3,840,836 5,786,125
220,000 SBC Communications, Inc...................... 7,204,830 10,725,000
67,000 US West, Inc................................. 2,424,445 4,824,000
------------ ------------
24,305,324 34,485,875
------------ ------------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ------------ ------------
<C> <S> <C> <C>
UTILITIES-ELECTRIC - 2.52%
180,000 Illinova Corp................................ $ 5,556,329 $ 6,255,000
47,900 Montana Power Co............................. 1,702,996 1,727,394
------------ ------------
7,259,325 7,982,394
------------ ------------
TOTAL COMMON STOCKS.......................... $185,727,532 $241,267,377
============ ============
</TABLE>
PREFERRED STOCKS - 9.01%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ------------ ------------
<C> <S> <C> <C>
BROADCASTING - 0.85%
44,000 UnitedGlobalCom, Inc., Conv. Ser D 7.00%..... $ 2,200,000 $ 2,689,500
------------ ------------
MISCELLANEOUS - 1.95%
88,000 Qwest Trends Trust, Conv. 5.75% (d).......... 3,674,000 6,193,000
------------ ------------
TELECOMMUNICATIONS - 4.49%
34,000 Global Crossing, Conv. 7.00% (d)............. 8,500,000 9,571,000
76,500 Mediaone Group, Inc., Conv. 7.00%............ 3,322,969 3,672,000
17,600 Verio, Inc., Conv. 6.75% (d)................. 880,000 990,000
------------ ------------
12,702,969 14,233,000
------------ ------------
UTILITIES-ELECTRIC - 1.72%
52,000 AES Corp., Conv. Ser A 5.375%................ 2,600,000 5,460,000
------------ ------------
TOTAL PREFERRED STOCKS....................... $ 21,176,969 $ 28,575,500
============ ============
</TABLE>
CORPORATE BONDS-INVESTMENT GRADE - 2.26%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
---------- ----------- ------------ ------------
<C> <S> <C> <C> <C>
MEDIA - 2.26%
$4,500,000 Tribune Co., 2.00% Conv. (PHONES -- AMERICA
ONLINE) 5-15-2029 (F)...................... A- $ 7,065,000 $ 7,155,000
------------ ------------
</TABLE>
CORPORATE BONDS-NON-INVESTMENT GRADE - 5.47%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
---------- ----------- ------------ ------------
<C> <S> <C> <C> <C>
COMPUTER-SOFTWARE - 0.70%
$ 850,000 BEA Systems, Inc., 4.00% Conv. 12-15-2006
(d)........................................ NR $ 850,000 $ 991,312
850,000 I2 Technologies, Inc., 5.25% Conv. 12-15-2006
(d)........................................ NR 850,000 1,216,563
------------ ------------
1,700,000 2,207,875
------------ ------------
ELECTRONIC-MISCELLANEOUS - 2.71%
7,000,000 Echostar Communications Corp., 4.875% Conv.
1-1-2007 (d)............................... NR 7,000,000 8,583,750
------------ ------------
ELECTRONIC-SEMICONDUCTOR AND CAPACITOR -
0.72%
1,600,000 Cypress Semiconductor Corp., 6.00% Conv.
10-1-2002 (d).............................. B 1,600,000 2,302,000
------------ ------------
HEALTH CARE SERVICES - 0.32%
1,700,000 Assisted Living Concepts, Inc., 5.625% Conv.
5-1-2003 (d)............................... NR 1,700,000 1,011,500
------------ ------------
</TABLE>
54
<PAGE>
CORPORATE BONDS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
---------- ----------- ------------ ------------
<C> <S> <C> <C> <C>
TELEPHONE SERVICES - 1.02%
$2,500,000 Telefonos de Mexico, S.A., 4.25% Conv. Ser A
6-15-2004.................................. BB $ 2,500,000 $ 3,246,875
------------ ------------
TOTAL CORPORATE BONDS - NON-INVESTMENT
GRADE...................................... 14,500,000 17,352,000
============ ============
TOTAL LONG-TERM INVESTMENTS.................. $228,469,501 $294,349,877
============ ============
</TABLE>
SHORT-TERM INVESTMENTS - 7.16%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
----------- ------------
<C> <S> <C>
BANKS - 4.31%
$13,656,663 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 5.30%........ $ 13,656,663
------------
DIVERSIFIED FINANCE - 0.59%
1,857,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.01%...................... 1,857,000
------------
U.S. GOVERNMENT AGENCY - 2.26%
5,200,000 Federal Home Loan Mortgage Corp., 5.77%,
1-10-2000.................................. 5,191,810
2,000,000 Federal National Mortgage Association, 5.86%,
1-20-2000.................................. 1,993,600
------------
7,185,410
------------
TOTAL SHORT-TERM INVESTMENTS................. 22,699,073
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$251,168,574)(b)........................... $317,048,950
============
</TABLE>
(a) Presently not paying dividend income.
(b) At December 31, 1999, the cost of securities for federal income tax
purposes was $251,168,574 and the aggregate gross unrealized appreciation
and depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $70,889,709
Unrealized depreciation..................................... (5,009,333)
- -------------------------------------------------------------------------
Net unrealized appreciation................................. $65,880,376
- -------------------------------------------------------------------------
</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
1999 850,000 BEA Systems, Inc., Conv. due 2006 - 144A 850,000
1997 1,600,000 Cypress Semiconductor Corp. due 2002 - 144A 1,600,000
1999 7,000,000 Echostar Communications Corp. due 2007 - 144A 7,000,000
1999 34,000 Global Crossing, Conv. - 144A 8,500,000
1999 850,000 I2 Technologies, Inc., Conv. due 2006 - 144A 850,000
1998 88,000 Qwest Trends Trust, Conv. - 144A 3,674,000
1999 17,600 Verio, Inc., Conv. - 144A 880,000
</TABLE>
The value of these securities at December 31, 1999, was $30,859,125,
which represents 9.73% 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 2.23% of total net assets as of December 31, 1999.
(f) PHONES (Participation Hybrid Option Note Exchangeable Securities) are debt
securities which entitle the holder to the principal value or an amount
based upon the market value of the referenced security.
55
<PAGE>
FORTIS SERIES FUND, INC.
S&P 500 INDEX SERIES
Schedule of Investments
December 31, 1999
COMMON STOCKS-98.64%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ---------------- ----------------
<C> <S> <C> <C>
BASIC INDUSTRY - 3.35%
7,800 Air Products & Chemicals, Inc................ $ 297,437 $ 261,787
1,400 Armstrong World Industries, Inc.............. 85,107 46,725
2,500 Ashland, Inc................................. 120,923 82,344
3,900 Avery Dennison Corp.......................... 192,489 284,212
1,800 Bemis Co., Inc............................... 70,269 62,775
1,900 Boise Cascade Corp........................... 64,687 76,950
2,000 Centex Corp.................................. 55,586 49,375
3,300 Champion International Corp.................. 167,545 204,394
7,500 Dow Chemical Co.............................. 715,476 1,002,187
35,484 Du Pont (E.I.) de Nemours and Co............. 2,217,605 2,337,508
2,700 Eastman Chemical Co.......................... 152,594 128,756
4,400 Ecolab, Inc.................................. 125,613 172,150
4,300 Engelhard Corp............................... 84,948 81,162
1,200 Fleetwood Enterprises, Inc................... 41,436 24,750
2,600 Fluor Corp................................... 125,773 119,275
1,100 FMC Corp. (a)................................ 77,661 63,044
7,500 Fort James Corp.............................. 289,321 205,312
5,800 Georgia-Pacific Group........................ 198,420 294,350
5,300 Goodyear Tire & Rubber Co. 305,602 149,394
2,400 Grace (W.R.) & Co. (a)...................... 36,934 33,300
2,000 Great Lakes Chemical Corp. 85,094 76,375
3,600 Hercules, Inc................................ 144,051 100,350
9,900 Illinois Tool Works, Inc..................... 574,692 668,869
14,070 International Paper Co....................... 641,213 794,076
1,600 Kaufman & Broad Home Corp.................... 32,227 38,700
2,933 Kerr-McGee Corp.............................. 163,363 181,846
18,100 Kimberly-Clark Corp.......................... 908,770 1,181,025
3,700 Louisiana-Pacific Corp....................... 72,207 52,725
15,100 Masco Corp................................... 399,470 383,162
3,500 Mead Corp.................................... 114,362 152,031
13,700 Minnesota Mining and Manufacturing Co........ 1,176,500 1,340,887
21,600 Monsanto Co.................................. 949,652 769,500
1,900 Owens Corning................................ 72,017 36,694
5,800 Pactiv Corp. (a)............................. 194,120 61,625
1,000 Potlatch Corp................................ 45,205 44,625
5,900 PPG Industries, Inc.......................... 353,084 369,119
5,400 Praxair, Inc................................. 245,092 271,687
1,500 Pulte Corp................................... 31,335 33,750
7,364 Rohm & Haas Co............................... 245,603 299,623
2,843 Sealed Air Corp. (a)........................ 149,186 147,303
5,800 Sherwin-Williams Co.......................... 167,987 121,800
1,900 Temple-Inland, Inc........................... 115,216 125,281
4,500 Union Carbide Corp........................... 219,062 300,375
3,400 Vulcan Materials Co.......................... 163,069 135,787
3,400 Westvaco Corp................................ 100,465 110,925
8,000 Weyerhaeuser Co.............................. 428,583 574,500
3,800 Willamette Industries, Inc................... 139,990 176,462
---------------- ----------------
13,357,041 14,228,852
---------------- ----------------
CAPITAL SPENDING - 32.96%
12,200 3Com Corp. (a).............................. 447,623 573,400
3,500 Adaptec, Inc. (a)........................... 139,642 174,562
5,200 ADC Telecommunications, Inc. (a)............ 228,637 377,325
4,200 Adobe Systems, Inc........................... 114,724 282,450
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ---------------- ----------------
<C> <S> <C> <C>
5,000 Advanced Micro Devices, Inc. (a)............ $ 116,140 $ 144,687
75,900 America Online, Inc. (a).................... 3,511,743 5,725,706
5,900 Analog Devices, Inc. (a).................... 340,046 548,700
2,800 Andrew Corp. (with rights) (a) 67,799 53,025
5,500 Apple Computer, Inc. (a).................... 195,910 565,469
12,800 Applied Materials, Inc. (a)................. 544,590 1,621,600
2,000 Autodesk, Inc................................ 68,922 67,500
21,100 Automatic Data Processing, Inc............... 674,600 1,136,762
8,100 BMC Software, Inc. (a)...................... 436,627 647,494
31,806 Boeing Co.................................... 1,454,768 1,321,937
800 Briggs & Stratton Corp....................... 37,887 42,900
5,900 Cabletron Systems, Inc. (a) 109,952 153,400
12,100 Caterpillar, Inc............................. 613,439 569,456
4,900 Ceridian Corp. (a).......................... 124,936 105,656
111,000 Cisco Systems, Inc. (a)..................... 3,738,595 11,890,875
3,100 Citrix Systems, Inc.......................... 294,112 381,300
57,905 Compaq Computer Corp......................... 1,551,851 1,567,054
18,300 Computer Associates International, Inc....... 797,217 1,279,856
5,400 Computer Sciences Corp. (a) 267,201 510,975
12,200 Compuware Corp. (a)......................... 444,559 454,450
2,400 Comverse Technology, Inc. (a)................ 261,175 347,400
3,200 Cooper Industries, Inc....................... 169,523 129,400
8,300 Corning, Inc................................. 382,395 1,070,181
2,275 Crane Co..................................... 66,666 45,216
1,400 Cummins Engine Co., Inc...................... 68,286 67,637
4,800 Danaher Corp................................. 231,438 231,600
8,000 Deere & Co................................... 373,894 347,000
86,500 Dell Computer Corp. (a)..................... 1,857,768 4,411,500
7,100 Dover Corp................................... 230,810 322,162
5,500 Dun & Bradstreet Corp........................ 154,127 162,250
2,500 Eaton Corp................................... 196,710 181,562
16,000 Electronic Data Systems Corp................. 715,879 1,071,000
34,500 EMC Corp. (a)............................... 962,420 3,769,125
14,800 Emerson Electric Co.......................... 850,589 849,150
14,600 First Data Corp.............................. 527,113 719,962
1,400 Foster Wheeler Corp.......................... 35,423 12,425
10,700 Gateway, Inc. (a)........................... 339,534 771,069
6,800 General Dynamics Corp........................ 373,473 358,700
5,900 General Instrument Corp. (a) 149,965 501,500
6,050 Genuine Parts Co............................. 194,723 150,116
3,700 Goodrich (B.F.) Co........................... 152,886 101,750
34,500 Hewlett-Packard Co........................... 2,246,702 3,930,844
26,762 Honeywell International, Inc. 1,146,650 1,543,833
5,100 IKON Office Solutions, Inc................... 107,104 34,744
10,600 IMS Health, Inc.............................. 230,566 288,187
5,650 Ingersoll-Rand Co............................ 252,437 311,103
113,500 Intel Corp................................... 5,709,164 9,342,469
61,300 International Business Machines Corp......... 4,373,203 6,620,400
9,600 Interpublic Group of Companies, Inc.......... 274,588 553,800
3,000 ITT Industries, Inc.......................... 103,616 100,312
2,900 Johnson Controls, Inc........................ 151,837 164,937
3,000 KLA-Tencor Corp. (a)........................ 159,581 334,125
4,400 Lexmark International Group, Inc.
Class A (a)................................ 296,602 398,200
13,400 Lockheed Martin Corp......................... 616,696 293,125
</TABLE>
56
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ---------------- ----------------
<C> <S> <C> <C>
5,000 LSI Logic Corp. (a)......................... $ 155,207 $ 337,500
106,344 Lucent Technologies, Inc..................... 3,961,266 7,955,860
2,000 McDermott International, Inc. 56,108 18,125
9,100 Micron Technology, Inc. (a).................. 412,934 707,525
175,200 Microsoft Corp. (a).......................... 9,205,323 20,454,600
1,300 Milacron, Inc................................ 28,832 19,987
1,500 Millipore Corp............................... 53,990 57,937
5,200 Molex, Inc................................... 262,600 294,775
20,700 Motorola, Inc................................ 1,377,544 3,048,075
300 NACCO Industries, Inc. Class A............... 27,847 16,669
5,700 National Semiconductor Corp. (a)............ 126,412 244,031
5,000 Network Appliance, Inc. (a)................. 130,037 415,312
45,140 Nortel Networks Corp......................... 1,210,969 4,559,140
2,400 Northrop Grumman Corp........................ 205,229 129,750
11,400 Novell, Inc. (a)............................ 153,329 453,862
6,000 Omnicom Group, Inc........................... 309,798 600,000
48,350 Oracle Corp. (a)............................ 1,154,862 5,418,222
4,200 Pall Corp.................................... 93,396 90,562
9,200 Parametric Technology Corp. (a).............. 192,812 248,975
3,700 Parker-Hannifin Corp......................... 140,583 189,856
8,350 Paychex, Inc................................. 279,850 334,000
3,500 PE Corp-PE Biosystems Group.................. 131,604 421,094
9,100 PeopleSoft, Inc. (a)........................ 237,995 193,944
1,600 PerkinElmer, Inc............................. 42,544 66,700
9,100 Pitney Bowes, Inc............................ 430,114 439,644
22,400 QUALCOMM, Inc. (a).......................... 929,283 3,948,000
3,800 Quintiles Transnational Corp. (a)............ 83,362 71,012
11,500 Raytheon Co. Class B........................ 633,001 305,469
6,500 Rockwell International Corp. 293,899 311,187
2,600 Scientific-Atlanta, Inc...................... 63,099 144,625
7,100 Seagate Technology, Inc. (a) 223,796 330,594
900 Shared Medical Systems Corp.................. 52,676 45,844
6,400 Silicon Graphics, Inc. (a).................. 99,330 62,800
2,200 Snap-on, Inc................................. 82,642 58,437
9,900 Solectron Corp. (a)......................... 527,729 941,737
3,000 Stanley Works................................ 110,791 90,375
52,600 Sun Microsystems, Inc. (a).................. 894,876 4,073,212
1,600 Tektronix, Inc............................... 58,988 62,200
13,300 Tellabs, Inc. (a)........................... 477,128 853,694
5,800 Teradyne, Inc. (a).......................... 282,010 382,800
27,200 Texas Instruments, Inc....................... 983,851 2,635,000
5,100 Textron, Inc................................. 335,920 391,106
5,400 Thermo Electron Corp. (a)................... 156,058 81,000
1,900 Thomas & Betts Corp.......................... 89,507 60,562
2,100 Timken Co.................................... 50,614 42,919
4,100 TRW, Inc..................................... 218,360 212,944
56,970 Tyco International Ltd....................... 1,748,614 2,214,709
10,400 Unisys Corp. (a)............................ 266,522 332,150
16,400 United Technologies Corp..................... 783,745 1,066,000
22,600 Xerox Corp................................... 978,980 512,737
10,600 Xilinx, Inc. (a)............................ 467,062 481,969
8,900 Yahoo!, Inc. (a)............................ 3,062,543 3,850,919
---------------- ----------------
74,620,634 140,013,469
---------------- ----------------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ---------------- ----------------
<C> <S> <C> <C>
CONSUMER CYCLICAL - 8.92%
14,355 Albertson's, Inc............................. $ 639,328 $ 462,949
5,100 AutoZone, Inc. (a).......................... 144,918 164,794
4,800 Bed Bath & Beyond, Inc. (a) 167,212 166,800
6,900 Best Buy Co., Inc. (a)...................... 455,993 346,294
3,000 Black & Decker Corp.......................... 150,390 156,750
3,100 Brunswick Corp............................... 80,469 68,975
6,800 Circuit City Stores-Circuit City Group....... 166,335 306,425
3,700 Consolidated Stores Corp. (a)................ 126,808 60,125
2,600 Cooper Tire & Rubber Co...................... 56,177 40,462
7,500 Costco Wholesale Corp. (a) 396,796 684,375
13,300 CVS Corp..................................... 491,352 531,169
5,622 Dana Corp.................................... 242,549 168,309
4,500 Darden Restaurants, Inc...................... 62,265 81,562
15,000 Dayton Hudson Corp........................... 627,476 1,101,562
19,199 Delphi Automotive Systems Corp............... 312,028 302,384
3,600 Dillard's, Inc. Class A..................... 121,991 72,675
7,656 Dollar General Corp.......................... 198,711 174,174
10,800 Eastman Kodak Co............................. 786,492 715,500
7,100 Federated Department Stores, Inc. (a)........ 304,878 358,994
41,200 Ford Motor Co................................ 1,768,973 2,201,625
29,162 Gap, Inc..................................... 683,775 1,341,452
21,900 General Motors Corp.......................... 1,219,622 1,591,856
3,200 Grainger (W.W.), Inc. (with rights).......... 142,460 153,000
1,300 Great Atlantic & Pacific Tea Co., Inc........ 40,541 36,237
4,400 Harrah's Entertainment, Inc. (a)............. 87,756 116,325
6,600 Hasbro, Inc.................................. 148,063 125,812
12,600 Hilton Hotels Corp........................... 190,484 121,275
78,150 Home Depot, Inc.............................. 2,198,092 5,358,159
16,800 Kmart Corp. (a)............................. 240,144 169,050
5,500 Kohl's Corp. (a)............................ 330,685 397,031
28,200 Kroger Co. (a).............................. 630,543 532,275
6,700 Leggett & Platt, Inc......................... 147,477 143,631
7,300 Limited, Inc................................. 197,942 316,181
2,100 Liz Claiborne, Inc........................... 87,699 79,012
1,300 Longs Drug Stores Corp....................... 41,324 33,556
13,000 Lowe's Companies, Inc........................ 474,428 776,750
8,500 Marriott International, Inc. Class A......... 279,819 268,281
14,300 Mattel, Inc.................................. 430,903 187,687
11,400 May Department Stores Co. 422,108 367,650
3,000 Maytag Corp.................................. 122,867 144,000
46,100 McDonald's Corp.............................. 1,423,014 1,858,406
6,800 Mirage Resorts, Inc. (a).................... 150,625 104,125
2,300 Navistar International Corp. (a)............. 62,284 108,962
9,600 NIKE, Inc. Class B.......................... 502,170 475,800
4,800 Nordstrom, Inc............................... 138,842 125,700
12,800 Office Depot, Inc. (a)...................... 279,325 140,000
2,700 PACCAR, Inc.................................. 120,383 119,644
9,000 Penney (J.C.) Co., Inc. (with rights)........ 478,994 179,437
1,800 Pep Boys-Manny, Moe & Jack................... 39,126 16,425
1,500 Polaroid Corp................................ 58,990 28,219
</TABLE>
57
<PAGE>
FORTIS SERIES FUND, INC.
S&P 500 INDEX SERIES (CONTINUED)
Schedule of Investments
December 31, 1999
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ---------------- ----------------
<C> <S> <C> <C>
1,900 Reebok International Ltd. (a) $ 45,752 $ 15,556
8,800 Rite Aid Corp................................ 260,392 98,450
1,100 Russell Corp................................. 29,706 18,425
17,400 Safeway, Inc. (a)........................... 922,313 618,787
12,900 Sears, Roebuck & Co.......................... 633,107 392,644
600 Springs Industries, Inc. Class A............ 32,931 23,962
15,800 Staples, Inc. (a)........................... 339,000 327,850
6,600 Tandy Corp. (with rights).................... 153,050 324,637
10,800 TJX Companies, Inc........................... 256,720 220,725
8,400 Toys 'R' Us, Inc. (a)....................... 213,497 120,225
5,200 Tricon Global Restaurants, Inc. (a)......... 194,691 200,850
4,000 V. F. Corp................................... 179,557 120,000
151,400 Wal-Mart Stores, Inc......................... 4,282,682 10,465,525
34,200 Walgreen Co.................................. 652,898 1,000,350
4,100 Wendy's International, Inc................... 95,903 84,562
2,600 Whirlpool Corp............................... 147,551 169,162
5,100 Winn-Dixie Stores, Inc....................... 201,444 122,081
---------------- ----------------
27,312,820 37,905,632
---------------- ----------------
CONSUMER DISCRETIONARY - 4.75%
6,400 Allied Waste Industries Inc.................. 112,721 56,400
10,400 ALLTEL Corp.................................. 520,387 859,950
2,300 American Greetings Corp. Class A............ 82,424 54,337
20,900 Carnival Corp................................ 913,214 999,281
25,944 CBS Corp. (a)............................... 786,753 1,658,794
11,500 Clear Channel Communications, Inc. (a)...... 621,111 1,026,375
25,500 Comcast Corp. Special Class A............... 532,443 1,281,375
2,600 Deluxe Corp.................................. 88,463 71,337
70,200 Disney (Walt) Co............................. 2,116,169 2,053,350
4,300 Donnelley (R.R.) & Sons Co. 158,798 106,694
3,100 Dow Jones & Co., Inc......................... 146,178 210,800
9,500 Gannett Co., Inc............................. 544,376 774,844
2,400 Harcourt General, Inc........................ 100,428 96,600
1,200 Jostens, Inc................................. 28,563 29,175
2,800 Knight-Ridder, Inc........................... 142,870 166,600
6,700 McGraw-Hill Companies, Inc. 258,205 412,887
20,600 MediaOne Group, Inc. (a).................... 798,112 1,582,337
1,800 Meredith Corp................................ 58,831 75,037
5,900 New York Times Co. Class A 170,119 289,837
12,300 Nextel Communications, Inc. Class A (a)..... 533,633 1,268,437
2,300 Ryder System, Inc............................ 69,169 56,206
14,550 Sprint Corp. (PCS Group) (a) 371,820 1,491,375
44,000 Time Warner, Inc............................. 1,956,106 3,187,250
2,000 Times Mirror Co. Class A.................... 113,966 134,000
8,100 Tribune Co................................... 250,995 446,006
23,700 Viacom, Inc. Class B (a).................... 642,190 1,432,369
21,105 Waste Management, Inc........................ 965,333 362,742
---------------- ----------------
13,083,377 20,184,395
---------------- ----------------
CONSUMER STAPLES - 6.27%
1,900 Alberto-Culver Co. Class B.................. 50,651 49,044
15,900 Anheuser-Busch Companies, Inc................ 834,810 1,126,912
20,976 Archer-Daniels-Midland Co. 357,338 255,645
8,900 Avon Products, Inc........................... 329,266 293,700
9,500 Bestfoods.................................... 451,705 499,344
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ---------------- ----------------
<C> <S> <C> <C>
2,300 Brown-Forman Corp. Class B $ 128,476 $ 131,675
14,800 Campbell Soup Co............................. 691,288 572,575
8,000 Clorox Co.................................... 353,073 403,000
84,000 Coca-Cola Co................................. 5,422,148 4,893,000
14,500 Coca-Cola Enterprises, Inc................... 439,839 291,812
19,800 Colgate-Palmolive Co......................... 766,653 1,287,000
16,600 ConAgra, Inc................................. 482,929 374,537
1,300 Coors (Adolph) Co. Class B................... 58,060 68,250
5,700 Fortune Brands, Inc.......................... 198,902 188,456
10,400 General Mills, Inc........................... 368,012 371,800
36,900 Gillette Co.................................. 1,742,377 1,519,819
12,200 Heinz (H.J.) Co.............................. 593,580 485,712
4,700 Hershey Foods Corp........................... 281,098 223,250
3,600 International Flavors & Fragrances, Inc...... 161,471 135,900
13,800 Kellogg Co................................... 527,970 425,212
11,100 Nabisco Group Holdings Corp.................. 221,829 117,937
1,400 National Service Industries, Inc............. 55,642 41,300
9,589 Newell Rubbermaid, Inc....................... 379,596 278,081
49,800 PepsiCo, Inc................................. 1,766,312 1,755,450
81,300 Philip Morris Companies, Inc. 3,400,013 1,885,144
44,700 Procter & Gamble Co.......................... 3,492,239 4,897,444
4,600 Quaker Oats Co............................... 235,297 301,875
11,000 Ralston-Ralston Purina Group................. 321,679 306,625
30,700 Sara Lee Corp................................ 740,338 677,319
14,700 Seagram Co. Ltd.............................. 610,992 660,581
4,700 SUPERVALU, INC............................... 95,833 94,000
11,300 SYSCO Corp................................... 262,331 447,056
2,000 Tupperware Corp.............................. 59,890 33,875
19,496 Unilever N.V. NY Shares...................... 1,325,629 1,061,314
5,900 UST, Inc..................................... 179,504 148,606
4,000 Wrigley (Wm.) Jr. Co......................... 302,167 331,750
---------------- ----------------
27,688,937 26,635,000
---------------- ----------------
ENERGY & RELATED - 6.09%
3,100 Amerada Hess Corp............................ 168,792 175,925
4,300 Anadarko Petroleum Corp...................... 149,298 146,738
3,900 Apache Corp.................................. 131,590 144,056
11,000 Atlantic Richfield Co........................ 802,863 951,500
11,200 Baker Hughes, Inc............................ 314,070 235,900
7,305 Burlington Resources, Inc.................... 301,546 241,522
22,300 Chevron Corp................................. 1,763,476 1,931,738
4,000 CMS Energy Corp.............................. 175,528 124,750
7,300 Coastal Corp................................. 227,954 258,694
2,800 Columbia Energy Group........................ 138,696 177,100
21,302 Conoco, Inc. Class B......................... 543,910 529,887
3,300 Consolidated Natural Gas Co.................. 178,410 214,294
12,453 Duke Energy Corp............................. 661,623 624,207
900 Eastern Enterprises.......................... 37,895 51,694
7,800 El Paso Energy Corp.......................... 314,658 302,738
24,300 Enron Corp................................... 652,481 1,078,313
117,348 Exxon Mobil Corp............................. 7,406,586 9,453,848
15,000 Halliburton Co............................... 586,592 603,750
1,600 NICOR, Inc................................... 59,858 52,000
11,900 Occidental Petroleum Corp. 277,783 257,338
1,100 ONEOK, Inc................................... 34,875 27,638
1,200 Peoples Energy Corp. (with rights)........... 42,745 40,200
</TABLE>
58
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ---------------- ----------------
<C> <S> <C> <C>
8,600 Phillips Petroleum Co........................ $ 384,968 $ 404,200
2,800 Rowan Companies, Inc. (a) 55,787 60,725
73,000 Royal Dutch Petroleum Co. NY Shares.......... 3,716,547 4,411,938
18,600 Schlumberger Ltd............................. 1,019,996 1,046,250
3,100 Sunoco, Inc.................................. 107,904 72,850
18,800 Texaco, Inc.................................. 1,055,907 1,021,075
5,200 Tosco Corp................................... 138,088 141,375
8,592 Union Pacific Resources Group, Inc........... 170,897 109,548
8,200 Unocal Corp.................................. 307,169 275,213
10,500 USX-Marathon Group........................... 313,029 259,219
14,800 Williams Companies, Inc...................... 452,375 452,325
---------------- ----------------
22,693,896 25,878,548
---------------- ----------------
FINANCE - 17.34%
5,144 Aetna, Inc................................... 417,937 287,100
9,000 AFLAC, INC................................... 462,079 424,688
27,200 Allstate Corp................................ 1,044,841 652,800
15,300 American Express Co.......................... 1,402,992 2,543,625
8,510 American General Corp........................ 504,109 645,696
52,715 American International Group, Inc............ 3,450,875 5,699,809
13,400 AmSouth Bancorporation....................... 366,437 258,788
8,725 Aon Corp..................................... 326,285 349,000
24,812 Associates First Capital Corp. Class A....... 766,483 680,779
57,994 Bank of America Corp......................... 3,738,534 2,910,574
25,000 Bank of New York Co., Inc.................... 716,025 1,000,000
39,932 Bank One Corp................................ 1,926,451 1,280,320
10,900 BB&T Corp.................................... 372,418 298,388
4,147 Bear Stearns Companies, Inc.................. 193,312 177,284
3,300 Block (H&R), Inc............................. 134,645 144,375
6,700 Capital One Financial Corp................... 286,463 322,856
24,536 Cendant Corp. (a)........................... 574,825 651,738
28,300 Chase Manhattan Corp......................... 1,907,540 2,198,556
6,000 Chubb Corp................................... 388,440 337,875
6,400 CIGNA Corp................................... 425,293 515,600
5,600 Cincinnati Financial Corp.................... 235,351 174,650
114,536 Citigroup, Inc............................... 4,040,739 6,363,907
5,350 Comerica, Inc................................ 289,128 249,778
11,082 Conseco, Inc................................. 416,254 198,091
3,800 Countrywide Credit Industries, Inc........... 155,746 95,950
4,900 Equifax, Inc................................. 168,410 115,456
34,900 Fannie Mae................................... 1,958,163 2,179,069
10,325 Fifth Third Bancorp.......................... 565,625 757,597
32,570 First Union Corp............................. 1,593,431 1,068,703
33,473 Firstar Corp................................. 969,018 707,117
31,325 FleetBoston Financial Corp. 1,141,035 1,090,502
8,600 Franklin Resources, Inc...................... 401,133 275,738
23,700 Freddie Mac.................................. 1,045,565 1,115,381
111,400 General Electric Co.......................... 9,141,104 17,239,150
5,700 Golden West Financial Corp. 160,883 190,950
7,700 Hartford Financial Services Group, Inc....... 374,141 364,788
16,273 Household International, Inc. 628,873 606,169
7,828 Huntington Bancshares, Inc. 223,935 186,894
3,550 Jefferson-Pilot Corp......................... 199,808 242,288
15,300 KeyCorp...................................... 475,181 338,513
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ---------------- ----------------
<C> <S> <C> <C>
4,100 Lehman Brothers Holdings, Inc................ $ 233,349 $ 347,219
6,800 Lincoln National Corp........................ 268,207 272,000
3,700 Loews Corp................................... 336,417 224,544
8,950 Marsh & McLennan Companies, Inc.............. 507,887 856,403
3,400 MBIA, Inc.................................... 211,466 179,563
27,275 MBNA Corp.................................... 570,742 743,244
17,500 Mellon Financial Corp........................ 501,023 596,094
12,600 Merrill Lynch & Co., Inc..................... 879,263 1,052,100
3,700 MGIC Investment Corp......................... 172,399 222,694
6,000 Morgan (J.P.) & Co., Inc..................... 690,646 759,750
18,915 Morgan Stanley Dean Witter & Co.............. 1,281,955 2,700,116
21,000 National City Corp........................... 667,331 497,438
7,600 Northern Trust Corp.......................... 292,631 402,800
4,000 Old Kent Financial Corp...................... 161,452 141,500
5,000 Paine Webber Group, Inc...................... 214,273 194,063
10,300 PNC Bank Corp................................ 503,976 458,350
4,100 Price (T. Rowe) Associates, Inc.............. 130,806 151,444
2,500 Progressive Corp............................. 306,616 182,813
4,850 Providian Financial Corp..................... 249,321 441,653
7,600 Regions Financial Corp....................... 273,161 190,950
3,600 Republic New York Corp....................... 192,541 259,200
4,500 SAFECO Corp.................................. 198,045 111,938
27,800 Schwab (Charles) Corp........................ 579,446 1,066,825
5,500 SLM Holding Corp............................. 256,412 232,375
5,700 SouthTrust Corp.............................. 226,925 215,531
7,758 St. Paul Companies, Inc...................... 281,456 261,348
5,500 State Street Corp............................ 346,575 401,844
6,000 Summit Bancorp............................... 273,477 183,750
10,900 SunTrust Banks, Inc.......................... 740,183 750,056
9,250 Synovus Financial Corp. (with rights)........ 201,083 183,844
4,500 Torchmark Corp............................... 147,665 130,781
24,871 U.S. Bancorp................................. 825,273 592,241
4,900 Union Planters Corp.......................... 235,503 193,244
8,166 UnumProvident Corp........................... 387,807 261,822
6,900 Wachovia Corp................................ 530,484 469,200
19,772 Washington Mutual, Inc....................... 767,530 514,072
56,100 Wells Fargo Co............................... 1,909,922 2,268,544
---------------- ----------------
60,142,755 73,651,895
---------------- ----------------
HEALTH CARE - 8.99%
51,800 Abbott Laboratories.......................... 1,939,204 1,880,988
4,400 Allergan, Inc................................ 121,553 218,900
3,500 ALZA Corp. (a).............................. 145,828 121,188
44,500 American Home Products Corp.................. 2,011,892 1,754,969
34,800 Amgen, Inc. (a)............................. 713,137 2,090,175
1,700 Bard (C.R.), Inc............................. 66,283 90,100
2,000 Bausch & Lomb, Inc........................... 97,830 136,875
9,900 Baxter International, Inc. (with rights)..... 562,796 621,844
8,500 Becton, Dickinson and Co..................... 252,734 227,375
3,800 Biomet, Inc.................................. 107,812 152,000
14,100 Boston Scientific Corp. (a)................. 425,564 308,438
67,600 Bristol-Myers Squibb Co...................... 3,378,072 4,339,075
9,300 Cardinal Health, Inc......................... 577,929 445,238
19,250 Columbia/HCA Healthcare Corp................. 521,727 564,266
</TABLE>
59
<PAGE>
FORTIS SERIES FUND, INC.
S&P 500 INDEX SERIES (CONTINUED)
Schedule of Investments
December 31, 1999
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ---------------- ----------------
<C> <S> <C> <C>
10,300 Guidant Corp. (a)........................... $ 369,460 $ 484,100
14,100 HEALTHSOUTH Corp. (a)....................... 291,046 75,788
5,700 Humana, Inc. (a)............................ 109,130 46,669
47,300 Johnson & Johnson............................ 3,476,525 4,404,813
37,200 Lilly (Eli) & Co. (with rights).............. 2,379,482 2,473,800
2,400 Mallinckrodt, Inc............................ 79,843 76,350
3,600 Manor Care, Inc. (a)........................ 105,589 57,600
9,618 McKesson HBOC, Inc........................... 638,033 217,006
39,900 Medtronic, Inc............................... 1,169,630 1,453,856
79,400 Merck & Co., Inc............................. 4,915,979 5,324,763
131,900 Pfizer, Inc. (with rights)................... 3,783,129 4,278,506
17,200 Pharmacia & Upjohn, Inc...................... 763,599 774,000
50,000 Schering-Plough Corp......................... 1,869,875 2,109,375
9,300 Service Corp. International.................. 282,684 64,519
3,400 Sigma-Aldrich Corp........................... 110,352 102,213
2,900 St. Jude Medical, Inc. (a).................. 97,491 88,994
10,600 Tenet Healthcare Corp. (a).................. 282,550 249,100
5,900 United HealthCare Corp....................... 304,507 313,438
29,100 Warner-Lambert Co............................ 1,575,945 2,384,381
3,300 Watson Pharmaceuticals, Inc. (a)............ 143,404 118,181
2,200 Wellpoint Health Networks, Inc. (a)......... 189,827 145,063
---------------- ----------------
33,860,441 38,193,946
---------------- ----------------
METAL & MINING - 0.85%
7,700 Alcan Aluminium Ltd.......................... 234,245 317,144
12,500 Alcoa, Inc................................... 519,154 1,037,500
3,246 Allegheny Technologies, Inc. 135,986 72,832
1,000 Ball Corp.................................... 39,046 39,375
13,300 Barrick Gold Corp............................ 276,893 235,244
4,500 Bethlehem Steel Corp. (a)................... 44,597 37,688
4,200 Crown Cork & Seal Co., Inc. 180,303 93,975
5,600 Freeport-McMoRan Copper & Gold, Inc. (a)..... 115,669 118,300
8,900 Homestake Mining Co.......................... 99,288 69,531
6,500 Inco Ltd. (a)............................... 130,774 152,750
5,701 Newmont Mining Corp.......................... 161,214 139,675
3,000 Nucor Corp................................... 149,082 164,438
5,300 Owens-Illinois, Inc. (a).................... 183,236 132,831
2,660 Phelps Dodge Corp............................ 153,673 178,553
11,100 Placer Dome, Inc............................. 158,496 119,325
2,100 Reynolds Metals Co........................... 124,978 160,913
10,808 Transocean Sedco Forex, Inc.................. 363,361 364,108
3,000 USX-U.S. Steel Group......................... 89,359 99,000
3,100 Worthington Industries, Inc. 53,213 51,344
---------------- ----------------
3,212,567 3,584,526
---------------- ----------------
TRANSPORTATION - 0.68%
5,100 AMR Corp. (a)............................... 313,696 341,700
15,800 Burlington Northern Santa Fe Corp............ 493,860 383,150
7,400 CSX Corp. (with rights)...................... 356,962 232,175
4,800 Delta Air Lines, Inc......................... 257,674 239,100
10,160 FDX Corp. (a)............................... 350,621 415,925
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ---------------- ----------------
<C> <S> <C> <C>
3,800 Kansas City Southern Industries, Inc......... $ 214,827 $ 283,575
12,900 Norfolk Southern Corp........................ 398,151 264,450
17,137 Southwest Airlines Co........................ 222,804 277,405
8,400 Union Pacific Corp........................... 470,768 366,450
2,500 US Airways Group, Inc. (a).................. 136,493 80,156
---------------- ----------------
3,215,856 2,884,086
---------------- ----------------
UTILITIES - 8.44%
7,000 AES Corp. (a)............................... 296,805 523,250
4,700 Ameren Corp.................................. 182,213 153,925
6,600 American Electric Power Co., Inc............. 287,726 212,025
108,802 AT&T Corp.................................... 4,194,665 5,521,702
52,818 Bell Atlantic Corp........................... 2,409,330 3,251,608
64,200 BellSouth Corp............................... 2,080,509 3,005,363
5,400 Carolina Power & Light Co.................... 210,767 164,363
7,200 Central & South West Corp.................... 180,269 144,000
4,700 CenturyTel, Inc.............................. 209,647 222,663
5,400 Cinergy Corp................................. 177,518 130,275
7,600 Consolidated Edison, Inc..................... 301,481 262,200
5,100 Constellation Energy Group 146,218 147,900
6,500 Dominion Resources, Inc...................... 263,158 255,125
4,900 DTE Energy Co................................ 175,654 153,738
11,800 Edison International......................... 294,139 309,013
8,400 Entergy Corp................................. 231,582 216,300
8,000 FirstEnergy Corp............................. 217,776 181,500
3,300 Florida Progress Corp........................ 139,955 139,631
6,100 FPL Group, Inc............................... 330,473 261,156
26,190 Global Crossing Ltd. (a).................... 559,398 1,309,500
4,300 GPU, Inc..................................... 161,459 128,731
33,400 GTE Corp..................................... 1,839,347 2,356,788
96,336 MCI WorldCom, Inc. (a)...................... 3,402,530 5,111,829
3,900 New Century Energies, Inc.................... 177,771 118,463
6,400 Niagara Mohawk Holdings, Inc. (a)........... 83,905 89,200
5,200 Northern States Power Co..................... 133,739 101,400
6,400 PECO Energy Co............................... 193,017 222,400
13,100 PG&E Corp.................................... 372,176 268,550
2,900 Pinnacle West Capital Corp. 108,372 88,631
5,400 PP&L Resources, Inc.......................... 132,816 123,525
7,500 Public Service Enterprise Group, Inc......... 241,590 261,094
10,074 Reliant Energy, Inc.......................... 257,861 230,443
116,236 SBC Communications, Inc...................... 4,361,265 5,666,505
8,155 Sempra Energy................................ 200,397 141,693
23,300 Southern Co.................................. 580,723 547,550
29,500 Sprint Corp. (FON Group)..................... 952,831 1,985,719
9,402 Texas Utilities Co........................... 386,378 334,359
17,219 U S WEST, Inc................................ 798,884 1,239,768
7,400 Unicom Corp.................................. 234,961 247,900
---------------- ----------------
27,509,305 35,829,785
---------------- ----------------
TOTAL COMMON STOCKS.......................... $ 306,697,629 $ 418,990,134
================ ================
</TABLE>
60
<PAGE>
SHORT-TERM INVESTMENTS - 1.37%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
---------- ----------------
<C> <S> <C>
BANKS - 1.17%
$4,953,224 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 5.30%........ $ 4,953,224
----------------
U.S. TREASURY BILLS - 0.20%
870,000 US Treasury Bill, 5.34% 3-23-2000 (e)........ 860,198
----------------
TOTAL SHORT-TERM INVESTMENTS................. 5,813,422
----------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$312,511,051) (b).......................... $ 424,803,556
================
</TABLE>
(a) Presently not paying dividend income.
(b) At December 31, 1999, the cost of securities for federal income tax
purposes was $312,651,729 and the aggregate gross unrealized appreciation
and depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation.......................................... $137,630,782
Unrealized depreciation.......................................... (25,478,955)
- -----------------------------------------------------------------------------
Net unrealized appreciation...................................... $112,151,827
- -----------------------------------------------------------------------------
</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 2.41% of total net assets as of December 31, 1999.
(e) Security pledged as initial margin deposit for open financial futures
position detailed below:
<TABLE>
FINANCIAL FUTURES-LONG
Market Unrealized
Value Appreciation/
Number of Covered by (Depreciation)
Issuer Contract(s) Contract(s) Expiration at 12/31/99
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Standard & Poor's 500....................................... 16 $5,936,800 March 2000 $130,825
</TABLE>
61
<PAGE>
FORTIS SERIES FUND, INC.
BLUE CHIP STOCK SERIES
Schedule of Investments
December 31, 1999
COMMON STOCKS-96.77%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- --------------- ---------------
<C> <S> <C> <C>
ADVERTISING-PUBLIC
RELATIONS - 1.07%
30,400 Omnicom Group, Inc........................... $ 1,513,702 $ 3,040,000
--------------- ---------------
BANKS - 5.28%
19,900 Bank of America Corp......................... 1,338,352 998,731
70,700 Bank of New York Company, Inc................ 2,298,897 2,828,000
22,800 Chase Manhattan Corp......................... 1,419,663 1,771,275
93,500 Firstar Corp................................. 2,344,592 1,975,187
73,400 Mellon Financial Corp........................ 2,118,959 2,500,187
14,500 State Street Corp............................ 1,106,477 1,059,406
95,600 Wells Fargo Co............................... 3,314,520 3,865,825
--------------- ---------------
13,941,460 14,998,611
--------------- ---------------
BEVERAGE - 0.98%
12,500 Coca-Cola Co................................. 717,117 728,125
58,100 PepsiCo, Inc................................. 2,098,883 2,048,025
--------------- ---------------
2,816,000 2,776,150
--------------- ---------------
BIOMEDICS, GENETICS RESEARCH AND DEVELOPMENT
- 1.41%
25,800 Amgen, Inc. (with rights) (a)................ 875,800 1,549,612
3,000 Biogen, Inc. (a)............................. 144,809 253,500
16,300 Genentech, Inc. (a).......................... 930,050 2,192,350
--------------- ---------------
1,950,659 3,995,462
--------------- ---------------
BROADCASTING - 0.70%
21,800 AT&T Corp. - Liberty Media Group (a)......... 932,652 1,237,150
29,800 Fox Entertainment Group Class A (a).......... 798,770 743,137
--------------- ---------------
1,731,422 1,980,287
--------------- ---------------
BROKERAGE AND
INVESTMENT - 0.17%
5,000 Goldman Sachs Group, Inc..................... 265,000 470,937
--------------- ---------------
BUILDING MATERIALS - 0.38%
42,400 Masco Corp................................... 1,146,439 1,075,900
--------------- ---------------
BUSINESS SERVICES - 2.11%
47,000 Automatic Data Processing, Inc. 1,451,941 2,532,125
10,400 Ceridian Corp. (a)........................... 306,367 224,250
48,900 First Data Corp.............................. 1,872,121 2,411,381
30,700 IMS Health, Inc.............................. 813,696 834,656
--------------- ---------------
4,444,125 6,002,412
--------------- ---------------
CABLE TELEVISION - 1.51%
25,600 Comcast Corp. Special Class A (a)............ 952,963 1,286,400
39,300 MediaOne Group, Inc. (a)..................... 2,238,991 3,018,731
--------------- ---------------
3,191,954 4,305,131
--------------- ---------------
CHEMICALS - 0.23%
16,800 Great Lakes Chemical Corp.(with rights)...... 733,781 641,550
--------------- ---------------
COMPUTER-COMMUNICATION EQUIPMENT - 2.22%
4,300 3Com Corp. (a)............................... 202,102 202,100
57,150 Cisco Systems, Inc. (a)...................... 2,104,083 6,122,194
--------------- ---------------
2,306,185 6,324,294
--------------- ---------------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- --------------- ---------------
<C> <S> <C> <C>
COMPUTER-HARDWARE - 3.71%
70,000 Dell Computer Corp. (a)...................... $ 2,469,098 $ 3,570,000
14,400 EMC Corp. (a)................................ 377,132 1,573,200
24,700 Hewlett-Packard Co........................... 1,899,857 2,814,256
4,600 International Business Machines Corp......... 489,585 496,800
27,100 Sun Microsystems, Inc. (a)................... 720,179 2,098,556
--------------- ---------------
5,955,851 10,552,812
--------------- ---------------
COMPUTER-SOFTWARE - 11.39%
59,500 America Online, Inc. (a)..................... 2,162,093 4,488,531
34,600 BMC Software, Inc. (a)....................... 1,588,806 2,765,837
12,300 Citrix Systems, Inc. (a)..................... 679,134 1,512,900
36,600 Computer Associates International, Inc....... 2,133,842 2,559,712
96,000 Microsoft Corp. (a).......................... 5,858,984 11,208,000
41,200 Oracle Corp. (a)............................. 1,552,177 4,616,975
46,900 Parametric Technology Corp. (a).............. 766,782 1,269,231
12,800 VERITAS Software Corp. (a)................... 598,766 1,832,000
4,900 Yahoo!, Inc. (a)............................. 969,870 2,120,169
--------------- ---------------
16,310,454 32,373,355
--------------- ---------------
CONSUMER GOODS - 1.57%
17,700 Colgate-Palmolive Co......................... 763,226 1,150,500
50,900 Kimberly-Clark Corp.......................... 2,822,258 3,321,225
--------------- ---------------
3,585,484 4,471,725
--------------- ---------------
COSMETICS AND SUNDRIES - 0.01%
400 Gillette Co.................................. 24,793 16,475
--------------- ---------------
DIVERSIFIED COMPANIES - 2.04%
4 Berkshire Hathaway, Inc. Class A (a)......... 239,699 224,400
4 Berkshire Hathaway, Inc. Class B (a)......... 8,941 7,320
143,272 Tyco International Ltd....................... 4,085,251 5,569,699
--------------- ---------------
4,333,891 5,801,419
--------------- ---------------
DRUGS - 8.68%
47,700 American Home Products Corp. 2,280,738 1,881,169
62,400 Bristol-Myers Squibb Co...................... 3,590,864 4,005,300
30,200 Eli Lilly & Co............................... 2,214,989 2,008,300
31,400 Johnson & Johnson............................ 2,436,118 2,924,125
46,600 Merck & Co., Inc............................. 2,875,518 3,125,112
95,400 Pfizer, Inc. (with rights)................... 2,838,024 3,094,537
59,600 Schering-Plough Corp......................... 2,385,471 2,514,375
62,600 Warner-Lambert Co............................ 3,922,626 5,129,287
--------------- ---------------
22,544,348 24,682,205
--------------- ---------------
ELECTRIC-PRODUCTS - 0.60%
29,700 Honeywell International, Inc................. 1,364,160 1,713,319
--------------- ---------------
ELECTRICAL EQUIPMENT - 2.37%
43,600 General Electric Co.......................... 4,002,224 6,747,100
--------------- ---------------
ELECTRICAL-COMPONENTS AND PARTS - 0.33%
1,700 Analog Devices, Inc. (a)..................... 142,601 158,100
17,100 Flextronics International Ltd. (a) 747,726 786,600
--------------- ---------------
890,327 944,700
--------------- ---------------
ELECTRONIC-COMPONENTS - 0.62%
18,600 Solectron Corp. (a).......................... 965,572 1,769,325
--------------- ---------------
</TABLE>
62
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- --------------- ---------------
<C> <S> <C> <C>
ELECTRONIC-CONTROLS AND EQUIPMENT - 2.11%
21,800 Applied Materials, Inc. (a).................. $ 1,451,010 $ 2,761,787
68,800 Maxim Integrated Products, Inc. (a).......... 1,454,014 3,246,500
--------------- ---------------
2,905,024 6,008,287
--------------- ---------------
ELECTRONIC-SEMICONDUCTOR AND CAPACITOR -
4.39%
28,700 Altera Corp. (a)............................. 999,849 1,422,444
63,900 Intel Corp................................... 3,520,140 5,259,769
7,400 JDS Uniphase Corp. (a)....................... 864,872 1,193,712
30,100 Texas Instruments, Inc....................... 1,278,336 2,915,937
37,200 Xilinx, Inc. (a)............................. 858,723 1,691,438
--------------- ---------------
7,521,920 12,483,300
--------------- ---------------
FINANCIAL SERVICES - 10.42%
21,500 American Express Co.......................... 2,157,229 3,574,375
36,800 Associates First Capital Corp. Class A....... 1,406,689 1,009,700
46,400 Capital One Financial Corp................... 1,642,523 2,235,900
157,173 Citigroup, Inc............................... 5,509,359 8,732,925
2,900 Concord EFS, Inc. (a)........................ 74,256 74,675
53,300 Fannie Mae................................... 3,117,077 3,327,919
121,200 Freddie Mac.................................. 5,948,265 5,703,975
25,600 Marsh & McLennan Companies, Inc.............. 1,700,980 2,449,600
16,600 Morgan Stanley Dean Witter & Co.............. 1,243,572 2,369,650
1,500 Providian Financial Corp..................... 161,898 136,594
--------------- ---------------
22,961,848 29,615,313
--------------- ---------------
FOOD - 0.21%
2,100 Quaker Oats Co............................... 141,826 137,813
27,040 U.S. Foodservice (a)......................... 485,304 452,920
--------------- ---------------
627,130 590,733
--------------- ---------------
FREIGHT CARRIERS - 0.15%
6,300 United Parcel Service, Inc. Class B.......... 315,000 434,700
--------------- ---------------
HEALTH CARE SERVICES - 1.43%
54,400 United HealthCare Corp....................... 2,877,547 2,890,000
18,000 Wellpoint Health Networks, Inc. (a).......... 1,391,106 1,186,875
--------------- ---------------
4,268,653 4,076,875
--------------- ---------------
HOUSEHOLD PRODUCTS - 0.68%
17,700 Procter & Gamble Co.......................... 1,504,677 1,939,256
--------------- ---------------
INSURANCE - 1.46%
53,100 Ace Ltd...................................... 1,438,425 886,106
4,200 American General Corp........................ 313,500 318,675
12,400 American International Group, Inc............ 1,067,751 1,340,750
4,200 CIGNA Corp................................... 346,960 338,363
2,050 UnumProvident Corp........................... 120,044 65,728
22,876 XL Capital Limited Class A................... 1,432,863 1,186,693
--------------- ---------------
4,719,543 4,136,315
--------------- ---------------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- --------------- ---------------
<C> <S> <C> <C>
LEISURE TIME-
AMUSEMENTS - 0.11%
4,200 Carnival Corp................................ $ 155,656 $ 200,813
4,200 Disney (Walt) Co............................. 164,086 122,850
--------------- ---------------
319,742 323,663
--------------- ---------------
MACHINERY-TOOLS - 0.62%
36,500 Danaher Corp................................. 1,270,878 1,761,125
--------------- ---------------
MEDIA - 4.65%
78,800 CBS Corp. (a)................................ 2,614,687 5,038,275
29,300 Clear Channel Communications, Inc. (a)....... 1,755,219 2,615,025
49,900 Infinity Broadcasting Corp. Class A (a)...... 1,140,512 1,805,756
51,700 Time Warner, Inc............................. 2,366,846 3,745,019
--------------- ---------------
7,877,264 13,204,075
--------------- ---------------
MEDICAL SUPPLIES - 0.53%
23,900 Baxter International, Inc. (with rights)..... 1,581,913 1,501,219
--------------- ---------------
MEDICAL TECHNOLOGY - 0.03%
2,000 Medtronic, Inc. (with rights)................ 68,332 72,875
--------------- ---------------
OIL AND GAS FIELD SERVICES - 0.42%
29,600 Halliburton Co............................... 1,210,042 1,191,400
--------------- ---------------
OIL-CRUDE PETROLEUM AND GAS - 3.49%
12,100 Amerada Hess Corporation..................... 762,737 686,675
34,600 BP Amoco plc ADR............................. 1,543,826 2,052,213
22,900 Chevron Corp................................. 2,022,010 1,983,713
44,980 Exxon Mobil Corp............................. 2,745,197 3,623,701
26,100 Royal Dutch Petroleum Co. NY Shares.......... 1,579,045 1,577,419
--------------- ---------------
8,652,815 9,923,721
--------------- ---------------
PHOTOGRAPHIC - 0.27%
11,800 Eastman Kodak Co............................. 876,375 781,750
--------------- ---------------
PRINTING - 0.17%
5,500 Lexmark International Group Class A (a)...... 487,602 497,750
--------------- ---------------
PUBLISHING - 0.42%
21,900 Tribune Co................................... 739,390 1,205,869
--------------- ---------------
RAILROAD AND RAILROAD EQUIPMENT - 0.44%
16,900 Kansas City Southern Industries, Inc......... 991,063 1,261,163
--------------- ---------------
REAL ESTATE-INVESTMENT
TRUST - 0.30%
35,800 Starwood Hotels & Resorts Worldwide, Inc..... 1,073,735 841,300
--------------- ---------------
RESTAURANTS AND
FRANCHISING - 0.52%
36,400 McDonald's Corp.............................. 1,293,024 1,467,375
--------------- ---------------
RETAIL-DEPARTMENT STORES - 0.64%
24,600 Dayton Hudson Corp........................... 1,469,523 1,806,563
--------------- ---------------
RETAIL-DISCOUNT STORES - 1.82%
74,700 Wal-Mart Stores, Inc......................... 2,330,314 5,163,638
--------------- ---------------
</TABLE>
63
<PAGE>
FORTIS SERIES FUND, INC.
BLUE CHIP STOCK SERIES (CONTINUED)
Schedule of Investments
December 31, 1999
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- --------------- ---------------
<C> <S> <C> <C>
RETAIL-GROCERY - 1.58%
92,400 Kroger Co. (a)............................... $ 2,213,835 $ 1,744,050
77,300 Safeway, Inc. (a)............................ 2,943,241 2,748,981
--------------- ---------------
5,157,076 4,493,031
--------------- ---------------
RETAIL-SPECIALTY - 2.26%
50,042 CVS Corp..................................... 1,870,693 1,998,552
64,500 Home Depot, Inc.............................. 1,927,094 4,422,281
--------------- ---------------
3,797,787 6,420,833
--------------- ---------------
SHOES AND LEATHER - 0.37%
21,200 Nike, Inc. Class B........................... 1,265,713 1,050,725
--------------- ---------------
TELECOMMUNICATION
EQUIPMENT - 2.50%
13,500 Motorola, Inc................................ 1,232,653 1,987,875
12,500 Nextel Communications, Inc. (a).............. 757,683 1,289,063
17,400 Nokia Corp. ADR.............................. 1,035,083 3,306,000
8,100 Tellabs, Inc. (a)............................ 432,802 519,919
--------------- ---------------
3,458,221 7,102,857
--------------- ---------------
TELECOMMUNICATIONS - 3.38%
30,900 Corning, Inc................................. 1,786,532 3,984,169
43,580 Lucent Technologies, Inc..................... 2,288,213 3,260,329
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- --------------- ---------------
<C> <S> <C> <C>
47,500 Vodafone AirTouch plc ADR.................... $ 1,165,917 $ 2,351,250
--------------- ---------------
5,240,662 9,595,748
--------------- ---------------
TELEPHONE SERVICES - 3.41%
14,200 Alltel Corp.................................. 634,485 1,174,163
10,400 GTE Corp..................................... 678,781 733,850
86,296 MCI WorldCom, Inc. (a)....................... 2,895,870 4,579,082
20,600 SBC Communications, Inc...................... 973,562 1,004,250
32,700 Sprint Corp.................................. 1,775,591 2,201,119
--------------- ---------------
6,958,289 9,692,464
--------------- ---------------
TOBACCO - 0.39%
47,800 Philip Morris Companies, Inc................. 2,052,850 1,108,363
--------------- ---------------
TOYS - 0.14%
21,200 Hasbro, Inc.................................. 532,544 404,125
--------------- ---------------
WASTE DISPOSAL - 0.08%
12,700 Waste Management, Inc........................ 570,499 218,281
--------------- ---------------
TOTAL COMMON STOCKS.......................... 198,117,279 275,057,861
=============== ===============
</TABLE>
SHORT-TERM INVESTMENTS - 3.57%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
---------- ---------------
<C> <S> <C>
FINANCIAL SERVICES - 1.93%
$2,000,000 Corporate Asset Funding Co., 6.14% 1-24-2000
(e)........................................ $ 1,992,066
1,000,000 General Electric Capital, 6.29% 1-26-2000.... 995,903
2,500,000 Falcon Asset Security Corp., 6.87% 1-7-2000
(e)........................................ 2,496,719
---------------
5,484,688
---------------
INSURANCE - 0.70%
2,000,000 Jefferson-Pilot Corp., 6.12% 2-24-2000 (e)... 1,981,819
---------------
INVESTMENT COMPANY - 0.59%
1,668,267 First American Prime Obligation Fund, Current
rate - 5.47%............................... 1,668,267
---------------
UTILITIES-ELECTRIC - 0.35%
1,000,000 Consolidated Edison Co., 6.78% 1-14-2000
(e)........................................ 997,414
---------------
TOTAL SHORT-TERM INVESTMENTS................. 10,132,188
---------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$208,249,467) (b).......................... $ 285,190,049
===============
</TABLE>
(a) Presently not paying dividend income.
(b) At December 31, 1999, the cost of securities for federal income tax
purposes was $208,678,409 and the aggregate gross unrealized appreciation
and depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $82,907,003
Unrealized depreciation..................................... (6,395,363)
- -------------------------------------------------------------------------
Net unrealized appreciation................................. $76,511,640
- -------------------------------------------------------------------------
</TABLE>
(c) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets. Market value of investments in foreign
securities represents 3.27% of total net assets as of December 31, 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.
<TABLE>
<CAPTION>
Year Acquired Shares/Par Security Cost Basis
- ------------- ---------- -------- ----------
<S> <C> <C> <C>
1999 1,000,000 Consolidated Edison Co. due 2000 - 4(2) $ 997,414
1999 2,000,000 Corporate Asset Funding Co. due 2000 - 4(2) 1,992,066
1999 2,500,000 Falcon Asset Security Corp. due 2000 - 4(2) 2,496,719
1999 2,000,000 Jefferson-Pilot Corp. due 2000 - 4(2) 1,981,819
</TABLE>
The aggregate value of these securities at December 31, 1999, was
$7,468,018, which represents 2.63% of total net assets.
64
<PAGE>
FORTIS SERIES FUND, INC.
INTERNATIONAL STOCK SERIES
Schedule of Investments
December 31, 1999
COMMON STOCKS-97.40%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
AUSTRALIA-1.96%
215,470 Broken Hill Proprietary Co.
Ltd. -- METALS-MINING AND MISCELLANEOUS.... $ 2,113,688 $ 2,820,213
------------ ------------
DENMARK-1.56%
30,300 Tele Danmark A/S -- TELEPHONE SERVICES....... 1,782,626 2,240,545
------------ ------------
FINLAND-1.60%
76,800 Merita plc Class A -- BANKS.................. 393,689 450,358
46,200 UPM-Kymmene Oyj -- PAPER..................... 1,356,163 1,852,435
------------ ------------
1,749,852 2,302,793
------------ ------------
FRANCE-14.19%
16,600 Alcatel S.A. -- TELECOMMUNICATIONS........... 1,884,765 3,793,883
63,095 Aventis S.A. -- DRUGS........................ 2,621,129 3,649,312
14,400 Axa -- FINANCIAL SERVICES.................... 1,091,986 1,997,743
24,500 Banque Nationale de Paris -- BANKS........... 1,218,230 2,249,586
8,310 Compagnie de Saint-Gobain -- BUILDING
MATERIALS.................................. 1,170,966 1,555,200
20,900 Michelin (C.G.D.E.) Class B -- RUBBER AND
PLASTIC.................................... 1,182,683 817,056
8,000 Suez Lyonnaise des Eaux
S.A. -- UTILITIES-WATER AND SEWER.......... 1,053,361 1,275,854
20,007 Total Fina S.A. Class B -- OIL-CRUDE
PETROLEUM AND GAS.......................... 1,479,983 2,657,289
27,054 Vivendi -- TELECOMMUNICATIONS................ 1,417,945 2,431,211
------------ ------------
13,121,048 20,427,134
------------ ------------
GERMANY-10.06%
5,774 Allianz AG -- INSURANCE...................... 1,891,475 1,930,250
22,169 DaimlerChrysler AG -- AUTOMOBILE
MANUFACTURERS.............................. 1,550,921 1,731,109
83,600 Deutsche Lufthansa AG -- AIRLINES............ 1,730,416 1,969,315
15,632 Deutsche Telekom AG -- TELECOMMUNICATIONS.... 782,543 1,094,516
29,974 Metro AG -- CONSUMER GOODS................... 1,566,730 1,631,494
24,800 Siemens AG -- ELECTRONIC-CONTROLS AND
EQUIPMENT.................................. 1,818,583 3,157,158
44,400 Thyssen Krupp AG -- BUILDING MATERIALS....... 924,349 1,368,576
33,100 Veba AG -- UTILITIES-ELECTRIC................ 1,805,471 1,609,202
------------ ------------
12,070,488 14,491,620
------------ ------------
ITALY-2.44%
238,900 ENI S.p.A. -- OIL-REFINING................... 1,342,480 1,307,524
107,400 San Paolo IMI S.p.A. -- BANKS................ 1,603,267 1,452,303
124,000 Telecom Italia S.p.A -- TELEPHONE SERVICES... 681,826 752,000
------------ ------------
3,627,573 3,511,827
------------ ------------
JAPAN-25.49%
150,000 Asahi Breweries Ltd. -- BEVERAGE............. 2,023,937 1,638,415
76,000 Canon, Inc. -- OFFICE EQUIPMENT AND
SUPPLIES................................... 2,046,525 3,014,606
127,000 Fuji Bank Ltd. -- BANKS...................... 1,223,675 1,232,094
149,000 Industrial Bank of Japan Ltd. -- BANKS....... 1,210,553 1,433,882
136 Japan Tobacco, Inc. -- TOBACCO............... 1,022,518 1,039,050
64,000 KAO Corp. -- HOUSEHOLD PRODUCTS.............. 1,438,996 1,822,676
7,200 Nintendo Co. Ltd. -- TOYS.................... 619,119 1,194,431
142 Nippon Telegraph & Telephone
Corp. -- TELEPHONE SERVICES................ 1,490,905 2,427,825
386,000 Nissan Motor Co. Ltd. -- AUTOMOBILE
MANUFACTURERS.............................. 1,441,320 1,516,018
113 NTT Mobile Communications Network,
Inc. -- TELECOMMUNICATIONS................. 825,910 4,338,723
17,100 Orix Corp. -- LEASING........................ 816,725 3,845,850
16,900 Promise Co. Ltd. -- FINANCIAL SERVICES....... 787,630 858,580
54,000 Sankyo Co. Ltd. -- DRUGS..................... 1,215,707 1,107,909
20,200 Sony Corp. -- ELECTRONIC-COMPONENTS.......... 1,635,831 5,979,776
288,000 Sumitomo Trust & Banking Co. Ltd. -- BANKS... 1,341,906 1,941,478
24,000 TDK Corp. -- COMPUTER-HARDWARE............... 2,259,212 3,308,485
------------ ------------
21,400,469 36,699,798
------------ ------------
</TABLE>
65
<PAGE>
FORTIS SERIES FUND, INC.
INTERNATIONAL STOCK SERIES (CONTINUED)
Schedule of Investments
December 31, 1999
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
NETHERLANDS-3.98%
31,350 Heineken N.V. -- BEVERAGE.................... $ 990,739 $ 1,521,610
39,400 ING Groep NV -- BANKS........................ 2,226,976 2,367,303
13,576 Koninklijke Philips Electronics
NV -- ELECTRIC-PRODUCTS.................... 806,742 1,837,158
------------ ------------
4,024,457 5,726,071
------------ ------------
PORTUGAL-1.02%
134,600 Portugal Telecom
S.A. -- TELECOMMUNICATIONS................. 1,305,470 1,469,312
------------ ------------
SINGAPORE-2.43%
194,000 Oversea-Chinese Banking Corp.
Ltd. -- BANKS.............................. 1,460,458 1,781,633
194,304 United Overseas Bank -- BANKS................ 945,171 1,714,447
------------ ------------
2,405,629 3,496,080
------------ ------------
SPAIN-4.46%
102,000 Endesa S.A. -- ELECTRIC-PRODUCTS............. 2,328,934 2,015,245
177,244 Telefonica S.A. -- TELECOMMUNICATIONS........ 1,595,474 4,406,200
------------ ------------
3,924,408 6,421,445
------------ ------------
SWEDEN-3.02%
81,100 Electrolux AB Class B -- HOUSEHOLD
PRODUCTS................................... 1,236,112 2,031,535
97,000 Nordbanken Holding AB -- BANKS............... 554,770 567,716
93,800 Svenska Handelsbanken Class A -- BANKS....... 789,945 1,174,833
22,600 Volvo AB Class B -- AUTOMOBILE
MANUFACTURERS.............................. 702,197 581,997
------------ ------------
3,283,024 4,356,081
------------ ------------
SWITZERLAND-3.81%
18,864 ABB Ltd. (a) -- ELECTRICAL EQUIPMENT......... 1,929,651 2,295,194
150 Roche Holding AG -- DRUGS.................... 1,788,832 1,771,100
2,510 Zurich Allied AG -- INSURANCE................ 1,086,403 1,423,802
------------ ------------
4,804,886 5,490,096
------------ ------------
UNITED KINGDOM-21.38%
82,700 Allied Zurich plc -- INSURANCE.............. 964,830 978,331
51,463 AstraZeneca plc -- DRUGS..................... 2,049,511 2,129,974
211,400 BP Amoco plc -- OIL-MISCELLANEOUS............ 1,532,715 2,124,347
263,132 British Aerospace plc -- AEROSPACE AND
EQUIPMENT.................................. 1,347,721 1,736,648
191,400 British American Tobacco plc -- TOBACCO...... 1,451,339 1,068,110
122,550 British Energy plc -- UTILITIES-ELECTRIC..... 958,617 703,643
136,800 British Energy plc A
shares -- UTILITIES-ELECTRIC............... 126,951 119,060
150,820 Cadbury Schweppes plc -- FOOD................ 792,900 909,106
148,214 Diageo plc -- RETAIL-DEPARTMENT STORES....... 1,268,116 1,188,410
43,100 GKN plc -- AUTOMOBILE AND MOTOR VEHICLE
PARTS...................................... 639,508 698,116
218,900 Granada Group plc -- DIVERSIFIED COMPANIES... 1,691,235 2,201,479
194,700 Great Universal Stores plc -- RETAIL-VARIETY
AND VARIETY MAIL ORDER..................... 2,161,175 1,077,896
141,100 Halifax Group plc -- FINANCIAL SERVICES...... 1,703,192 1,558,901
159,615 HSBC Holdings plc -- BANKS................... 1,491,425 2,238,121
154,900 Imperial Chemical Industries
plc -- CHEMICALS........................... 1,923,876 1,636,471
306,600 Invensys plc -- DIVERSIFIED COMPANIES........ 1,256,500 1,655,393
64,300 National Westminster Bank plc -- BANKS....... 1,034,626 1,381,418
80,100 Prudential plc -- INSURANCE.................. 1,093,240 1,568,530
195,200 Reed International plc -- PUBLISHING......... 1,393,894 1,451,896
198,664 Royal & Sun Alliance Insurance Group
plc -- INSURANCE........................... 2,097,157 1,480,861
72,700 Smithkline Beecham plc -- DRUGS.............. 1,005,311 922,132
203,900 Tesco plc -- FOOD............................ 628,878 620,281
180,696 Unilever plc -- CONSUMER GOODS............... 1,484,520 1,326,542
------------ ------------
30,097,237 30,775,666
------------ ------------
TOTAL COMMON STOCKS.......................... $105,710,855 $140,228,681
============ ============
</TABLE>
66
<PAGE>
SHORT-TERM INVESTMENTS-2.47%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
---------- ------------
<C> <S> <C>
BANKS-2.47%
$3,562,400 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 5.30%........ $ 3,562,400
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$109,273,255)(b)........................... $143,791,081
============
</TABLE>
(a) Presently not paying dividend income.
(b) At December 31, 1999, the cost of securities for federal income tax
purposes was $109,287,730 and the aggregate gross unrealized appreciation
and depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation.......................................... $39,317,409
Unrealized depreciation.......................................... (4,814,058)
- ------------------------------------------------------------------------------
Net unrealized appreciation...................................... $34,503,351
- ------------------------------------------------------------------------------
</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.
67
<PAGE>
FORTIS SERIES FUND, INC.
MID CAP STOCK SERIES
Schedule of Investments
December 31, 1999
COMMON STOCKS-97.09%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ----------- -----------
<C> <S> <C> <C>
BASIC INDUSTRY - 9.27%
3,300 AK Steel Holding Corp........................ $ 71,981 $ 62,287
4,500 American Power Conversion Corp. (a).......... 82,364 118,687
2,500 Briggs & Stratton............................ 151,957 134,062
6,900 Caraustar Industries, Inc.................... 188,306 165,600
3,000 Centex Construction Products, Inc............ 114,116 117,000
3,600 Centex Corp.................................. 109,671 88,875
1,000 Cleveland-Cliffs, Inc........................ 41,868 31,125
2,100 CNF Transportation, Inc...................... 65,564 72,450
3,000 Cordant Technologies, Inc.................... 133,360 99,000
5,100 Cytec Industries, Inc. (a)................... 169,402 117,937
1,800 Dexter Corp.................................. 63,744 71,550
6,200 Engelhard Corp............................... 132,875 117,025
2,800 Georgia-Pacific Corp. (Timber Group)......... 65,745 68,950
2,700 Helix Technology Corp........................ 120,001 120,994
2,400 Kansas City Southern Industries, Inc......... 116,731 179,100
8,300 Louisiana-Pacific Corp....................... 170,245 118,275
2,500 Parker-Hannifin Corp......................... 115,618 128,281
2,700 Sealed Air Corp. (a)......................... 125,948 139,894
4,900 Sherwin-Williams Co.......................... 107,104 102,900
4,600 Trinity Industries, Inc...................... 150,886 130,812
2,400 USFreightways Corp........................... 115,319 114,900
----------- -----------
2,412,805 2,299,704
----------- -----------
CAPITAL SPENDING - 37.19%
6,200 A.H. Belo Corp. Class A..................... 128,022 118,187
8,300 Altera Corp. (a)............................. 264,082 411,369
1,600 Check Point Software Technologies
Ltd. (a)................................... 144,889 318,000
6,000 Compuware Corp. (a).......................... 172,558 223,500
9,700 Convergys Corp. (a).......................... 202,210 298,275
6,500 DeVry, Inc. (a).............................. 142,724 121,062
1,600 DST Systems, Inc. (a)........................ 83,282 122,100
2,400 Extreme Networks, Inc. (a)................... 210,794 200,400
4,500 Hertz Corp. Class A......................... 207,244 225,562
1,500 Hispanic Broadcasting Corp. (a).............. 121,200 138,328
3,800 iXL Enterprises, Inc. (a).................... 147,371 210,900
3,600 Jabil Circuit, Inc. (a)..................... 132,869 262,800
2,400 Johnson Controls, Inc........................ 155,409 136,500
1,800 Knight Ridder, Inc........................... 95,420 107,100
2,600 Legato Systems, Inc. (a).................... 87,447 178,912
1,800 Lexmark International Group, Inc.
Class A (a)............................... 109,920 162,900
3,900 Linear Technology Corp....................... 198,668 279,094
12,600 Maxim Integrated Products, Inc. (a)......... 299,098 594,562
3,000 McClatchy Co. Class A....................... 103,668 129,750
1,600 Proxicom, Inc. (a).......................... 122,154 198,900
2,200 Pulitzer, Inc................................ 91,964 88,687
6,200 Quintiles Transnational Corp. (a)........... 278,237 115,862
2,700 Rational Software Corp. (a)................. 139,487 132,637
1,600 Razorfish, Inc. (a)......................... 117,185 152,200
1,500 Redback Networks, Inc. (a).................. 195,980 266,250
3,400 RF Micro Devices, Inc. (a).................. 240,611 232,687
6,200 Sabre Group Holdings, Inc. (a).............. 282,041 317,750
3,300 Sanmina Corp. (a)........................... 211,678 329,587
2,800 Sawtek, Inc. (a)............................ 120,097 186,375
2,900 Symantec Corp. (a).......................... 147,476 170,012
1,800 Synopsys, Inc. (a).......................... 130,790 120,150
1,100 Telephone & Data Systems, Inc................ 115,651 138,600
1,400 U.S. Cellular Corp. (a)..................... 79,935 141,312
1,800 Univision Communications, Inc.
Class A (a)............................... 147,256 183,937
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ----------- -----------
<C> <S> <C> <C>
4,000 USWeb Corp. (a)............................. $ 153,918 $ 177,750
1,600 VeriSign, Inc. (a).......................... 66,981 305,200
4,750 VERITAS Software Corp. (a).................. 147,317 679,844
1,200 Vignette Corp. (a).......................... 120,546 195,600
6,000 Vitesse Semiconductor Corp. (a)............. 222,314 314,625
300 Washington Post Co. Class B.................. 163,087 166,763
2,700 Waters Corp. (a)............................ 120,255 143,100
3,200 Young & Rubicam, Inc......................... 114,373 226,400
----------- -----------
6,536,208 9,223,529
----------- -----------
CONSUMER CYCLICAL - 10.90%
6,000 Abercrombie & Fitch Co. Class A (a)........ 199,083 160,125
2,800 Alaska Air Group, Inc. (a).................. 119,461 98,350
4,800 BJ's Wholesale Club, Inc. (a)............... 151,413 175,200
4,700 Blyth Industries, Inc. (a).................. 115,924 115,444
5,100 Bob Evans Farms, Inc......................... 102,122 78,731
4,600 Brinker International, Inc. (a)............. 126,124 110,400
4,000 Brunswick Corp............................... 108,462 89,000
4,300 Dollar Tree Stores, Inc. (a)................ 167,688 208,281
6,900 Furniture Brands International, Inc. (a).... 178,436 151,800
2,000 Harley-Davidson, Inc......................... 102,058 128,125
4,300 Herman Miller, Inc........................... 106,036 98,900
6,000 Leggett & Platt, Inc......................... 139,731 128,625
3,200 MGM Grand, Inc............................... 154,599 161,000
3,800 Nautica Enterprises, Inc. (a)............... 75,098 42,988
2,500 Navistar International Corp. (a)............ 128,289 118,438
7,800 Park Place Entertainment Corp. (a).......... 98,806 97,500
11,300 Ross Stores, Inc............................. 235,467 202,694
10,100 TJX Companies, Inc........................... 267,668 206,419
3,300 V.F. Corp.................................... 149,338 99,000
4,800 Zale Corp. (a).............................. 161,629 232,200
----------- -----------
2,887,432 2,703,220
----------- -----------
CONSUMER STAPLES - 3.67%
5,000 Dial Corp.................................... 134,792 121,563
2,700 Estee Lauder Companies, Inc. Class A........ 101,557 136,181
3,500 Hormel Foods Corp............................ 130,264 142,188
3,600 Lancaster Colony Corp........................ 120,905 119,250
4,500 Supervalu, Inc............................... 111,602 90,000
4,900 U.S. Foodservice (a)........................ 111,098 82,075
10,700 Universal Foods Corp......................... 245,662 218,013
----------- -----------
955,880 909,270
----------- -----------
ENERGY & RELATED - 6.72%
5,800 Diamond Offshore Drilling, Inc............... 177,748 177,263
5,400 Keyspan Corp................................. 156,743 125,213
4,300 LG&E Energy Corp............................. 94,814 74,981
2,500 Murphy Oil Corp.............................. 141,708 143,438
3,300 Nicor, Inc................................... 120,144 107,250
5,200 Peoples Energy Corp.......................... 192,846 174,200
6,200 Questar Corp................................. 118,801 93,000
3,600 Santa Fe International Corp.................. 88,842 93,150
4,300 Tidewater, Inc............................... 119,527 154,800
7,100 Transocean Sedco Forex, Inc.................. 193,018 239,181
6,600 Ultramar Diamond Shamrock Corp............... 164,599 149,738
2,300 Vastar Resources, Inc........................ 111,075 135,700
----------- -----------
1,679,865 1,667,914
----------- -----------
FINANCE - 12.42%
5,300 A.G. Edwards, Inc............................ 187,528 169,931
3,800 Associated Banc-Corp......................... 137,326 130,150
6,100 City National Corp........................... 222,272 200,919
5,900 Cullen/Frost Bankers, Inc.................... 157,918 151,925
</TABLE>
68
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ----------- -----------
<C> <S> <C> <C>
6,300 Dime Bancorp, Inc............................ $ 141,079 $ 95,288
6,000 First Tennessee National Corp................ 195,392 171,000
4,300 Golden West Financial Corp................... 134,126 144,050
2,800 H & R Block, Inc............................. 125,795 122,500
4,800 Mercantile Bankshares Corp................... 170,019 153,300
3,600 Metris Companies, Inc........................ 119,489 128,475
4,300 Mutual Risk Management Ltd................... 115,073 72,294
3,600 Nationwide Financial Services, Inc........... 156,547 100,575
10,800 North Fork Bancorporation, Inc............... 226,548 189,000
6,500 Pacific Century Financial Corp............... 135,838 121,469
1,500 Paine Webber Group, Inc...................... 61,011 58,219
4,700 PMI Group, Inc............................... 198,168 229,419
2,500 Radian Group, Inc............................ 127,694 119,375
1,400 RenaissanceRe Holdings Ltd................... 56,950 57,225
5,700 T. Rowe Price Associates, Inc................ 197,835 210,544
3,800 Travelers Property Casualty Corp.
Class A................................... 128,619 130,150
5,400 Union Planters Corp.......................... 227,219 212,963
2,800 UnionBanCal Corp............................. 119,910 110,425
----------- -----------
3,342,356 3,079,196
----------- -----------
HEALTH CARE - 10.33%
5,300 Allergan, Inc................................ 252,452 263,675
5,900 BioChem Pharma, Inc. (a).................... 129,545 128,325
6,800 Biogen, Inc. (a)............................ 309,555 574,600
5,700 Biomet, Inc.................................. 196,996 228,000
6,300 Chiron Corp. (a)............................ 186,715 266,963
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ----------- -----------
<C> <S> <C> <C>
15,400 Health Management Associates, Inc. (a) $ 172,503 $ 205,975
4,100 Lincare Holdings, Inc. (a).................. 144,701 142,219
2,800 MedImmune, Inc. (a)......................... 183,913 464,450
1,100 Patterson Dental Co. (a).................... 43,943 46,888
3,500 Universal Health Services, Inc.
Class B (a)............................... 161,206 126,000
2,200 VISX, Inc. (a).............................. 164,295 113,850
----------- -----------
1,945,824 2,560,945
----------- -----------
UTILITIES - 6.59%
6,600 Allegheny Energy, Inc........................ 203,802 177,788
2,300 CenturyTel, Inc.............................. 97,253 108,963
3,900 Constellation Energy Group................... 116,292 113,100
5,800 DTE Energy Co................................ 195,148 181,975
7,900 Energy East Corp............................. 214,917 164,419
4,800 GPU, Inc..................................... 194,444 143,700
4,300 Northern States Power Co..................... 96,305 83,850
5,100 NSTAR........................................ 208,377 206,550
9,800 OGE Energy Corp.............................. 239,933 186,200
3,300 Pinnacle West Capital Corp................... 135,683 100,856
5,200 Sierra Pacific Resources..................... 127,579 90,025
4,100 TECO Energy, Inc............................. 106,766 76,106
----------- -----------
1,936,499 1,633,532
----------- -----------
TOTAL COMMON STOCKS.......................... $21,696,869 $24,077,310
=========== ===========
</TABLE>
SHORT-TERM INVESTMENTS - 2.94%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
--------- -----------
<C> <S> <C>
BANKS - 2.66%
$660,132 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 5.30%........ $ 660,132
-----------
U.S. TREASURY BILLS - 0.28%
70,000 U.S. Treasury Bill, 5.34%, 3-23-2000 (e)..... 69,211
-----------
TOTAL SHORT-TERM INVESTMENTS................. 729,343
-----------
TOTAL INVESTMENTS IN SECURITIES
(COST: $22,426,212) (b).................... $24,806,653
===========
</TABLE>
(a) Presently not paying dividend income.
(b) At December 31, 1999, the cost of securities for federal income tax
purposes was $22,432,507 and the aggregate gross unrealized appreciation
and depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 4,327,784
Unrealized depreciation..................................... (1,953,638)
=========================================================================
Net unrealized appreciation................................. $ 2,374,146
- -------------------------------------------------------------------------
</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 1.28% of total net assets as of December 31, 1999.
(e) Security pledged as initial margin deposit for open financial futures
position detailed below:
<TABLE>
<CAPTION>
FINANCIAL FUTURES-LONG
<S> <C> <C> <C> <C>
Market
Value Unrealized
Covered Appreciation/
Number of by (Depreciation)
Issuer Contract(s) Contract(s) Expiration at 12/31/99
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
March
<S> <C> <C> <C> <C>
Standard & Poor's Midcap 400............................ 3 $673,725 2000 $31,850
</TABLE>
69
<PAGE>
FORTIS SERIES FUND, INC.
SMALL CAP VALUE SERIES
Schedule of Investments
December 31, 1999
COMMON STOCKS-99.56%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ----------- -----------
<C> <S> <C> <C>
APPAREL - 1.28%
100,000 Gerber Childrenswear, Inc. (a).............. $ 663,107 $ 500,000
----------- -----------
BANKS - 11.57%
25,000 CCB Financial Group.......................... 1,228,397 1,089,062
14,600 Community Bank System, Inc................... 415,907 337,625
23,000 FNB Corp..................................... 594,790 511,750
23,000 Interwest Bancorp, Inc....................... 512,513 442,750
32,850 Keystone Financial, Inc...................... 800,134 691,903
45,000 Peoples Heritage Financial Group............. 807,521 677,812
47,700 Republic Security Financial Corp............. 432,164 341,353
43,000 Seacoast Financial Services Corp............. 451,786 438,062
----------- -----------
5,243,212 4,530,317
----------- -----------
BUILDING MATERIALS - 1.97%
16,000 Rayonier, Inc................................ 690,540 773,000
----------- -----------
BUSINESS SERVICES - 5.14%
55,000 Interim Services, Inc. (a).................. 1,013,778 1,361,250
48,500 Romac International, Inc. (a)............... 489,337 651,719
----------- -----------
1,503,115 2,012,969
----------- -----------
CHEMICALS-SPECIALTY - 2.08%
50,000 A. Schulman, Inc............................. 743,773 815,625
----------- -----------
CLOSED END GLOBAL COUNTRY
FUND - 1.66%
55,000 Morgan Stanley Asia Pacific Fund............. 412,083 649,687
----------- -----------
COMPUTER-HARDWARE - 0.84%
37,500 Splash Technology Holdings (a).............. 388,398 330,469
----------- -----------
COMPUTER-SOFTWARE - 5.99%
12,000 Complete Business Solutions (a)............. 177,559 301,500
54,000 Computer Horizons Corp. (a)................. 693,602 874,125
40,000 JDA Software Group, Inc. (a)................ 426,828 655,000
40,530 Structural Dynamics Research Corp. (a) 441,974 516,757
----------- -----------
1,739,963 2,347,382
----------- -----------
CONSTRUCTION - 4.43%
24,000 Champion Enterprises, Inc. (a).............. 226,136 205,500
27,000 Lennar Corp. (a)............................ 462,131 438,750
25,000 Pulte Corp................................... 524,952 562,500
23,000 Ryland Group, Inc............................ 499,708 530,438
----------- -----------
1,712,927 1,737,188
----------- -----------
CONSUMER GOODS - 2.38%
38,390 Jostens, Inc................................. 862,537 933,357
----------- -----------
COSMETICS AND SUNDRIES - 1.02%
50,000 Perrigo Co. (a).............................. 478,328 400,000
----------- -----------
DIVERSIFIED COMPANIES - 3.08%
75,000 Federal Signal Corp.......................... 1,396,961 1,204,688
----------- -----------
ELECTRIC-PRODUCTS - 1.13%
30,000 Watts Industries, Inc. Class A............... 324,542 442,500
----------- -----------
ELECTRONIC-COMMUNICATION
SECURITY - 2.52%
22,000 Pittway Corp. Class A....................... 595,176 985,875
----------- -----------
FOOD - 0.76%
52,000 Vlasic Foods International (a).............. 448,478 295,750
----------- -----------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ----------- -----------
<C> <S> <C> <C>
HEALTH CARE SERVICES - 1.84%
60,000 Omnicare, Inc................................ $ 578,456 $ 720,000
----------- -----------
INSURANCE - 5.17%
50,600 IPC Holdings Ltd............................. 994,796 752,675
30,020 Ohio Casualty Corp........................... 483,311 482,196
58,000 Old Republic International Corp.............. 872,343 790,250
----------- -----------
2,350,450 2,025,121
----------- -----------
MACHINERY-SPECIALTY - 4.35%
38,000 Flowserve Corp............................... 634,010 646,000
31,550 Stewart and Stevenson Services, Inc.......... 302,512 373,670
33,500 Thomas Industries, Inc....................... 620,264 684,656
----------- -----------
1,556,786 1,704,326
----------- -----------
MEDICAL SUPPLIES - 3.13%
55,000 Sola International, Inc. (a)................ 816,032 763,125
45,000 STERIS Corp. (a)............................ 652,392 464,063
----------- -----------
1,468,424 1,227,188
----------- -----------
METALS-FABRICATING - 1.05%
40,000 Circor International, Inc. (a).............. 369,609 412,500
----------- -----------
MISCELLANEOUS - 0.56%
16,640 Mentor Graphics Corporation (a)............. 188,701 219,440
----------- -----------
OFFICE EQUIPMENT AND SUPPLIES - 1.40%
25,000 Hon Industries, Inc.......................... 546,388 548,438
----------- -----------
OIL AND GAS FIELD SERVICES - 5.97%
28,000 Chieftain International, Inc. (a)........... 455,079 483,000
30,000 Evergreen Resources, Inc. (a)............... 507,335 592,500
160,000 Key Energy Services, Inc. (a)............... 532,087 830,000
20,000 Mitchell Energy and Development Corp.
Class B................................... 272,472 431,250
----------- -----------
1,766,973 2,336,750
----------- -----------
OIL-OFFSHORE DRILLING - 1.72%
30,000 Marine Drilling Companies, Inc. (a)......... 410,587 673,125
----------- -----------
REAL ESTATE-INVESTMENT TRUST - 10.93%
2,680 EastGroup Properties, Inc. (a).............. 47,885 49,580
24,000 Gables Residential Trust..................... 608,987 576,000
28,000 Home Properties of New York, Inc............. 729,671 768,250
50,000 IRT Property Co.............................. 533,583 390,625
15,000 Parkway Properties, Inc...................... 452,226 432,188
26,000 Plum Creek Timber Co, Inc.................... 682,324 650,000
29,000 Prentiss Properties Trust.................... 654,486 609,000
45,000 Summit Properties, Inc....................... 829,119 804,375
----------- -----------
4,538,281 4,280,018
----------- -----------
REFRIGERATION, AIR CONDITION AND
MISCELLANEOUS - 0.12%
3,150 Hussman International, Inc................... 47,085 47,447
----------- -----------
RESTAURANTS AND FRANCHISING - 1.00%
45,210 Landry's Seafood Restaurants, Inc. (a)...... 424,881 392,762
----------- -----------
RETAIL-MISCELLANEOUS - 1.87%
115,000 Pier 1 Imports, Inc.......................... 924,833 733,125
----------- -----------
RETAIL-SPECIALTY - 2.52%
21,000 Payless ShoeSource, Inc. (a)................ 984,031 987,000
----------- -----------
</TABLE>
70
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ----------- -----------
<C> <S> <C> <C>
SAVINGS AND LOANS, MORTGAGE COMPANIES - 3.62%
50,000 Warren Bancorp, Inc.......................... $ 473,338 $ 375,000
44,200 Webster Financial Corp....................... 1,014,687 1,041,463
----------- -----------
1,488,025 1,416,463
----------- -----------
SHIP BUILDING, SHIPPING - 1.03%
30,000 Knightsbridge Tankers Ltd.................... 739,622 405,000
----------- -----------
SHOES AND LEATHER - 2.48%
88,700 Wolverine World Wide, Inc.................... 973,292 970,156
----------- -----------
STEEL AND IRON - 0.72%
36,890 NS Group, Inc. (a).......................... 190,794 281,286
----------- -----------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ----------- -----------
<C> <S> <C> <C>
TELECOMMUNICATION EQUIPMENT - 2.92%
43,000 Network Equipment Technologies, Inc. (a)..... $ 463,493 $ 507,938
25,000 REMEC, Inc. (a)............................. 312,181 637,500
----------- -----------
775,674 1,145,438
----------- -----------
TRANSPORTATION - 1.31%
30,000 Knight Transportation, Inc. (a)............. 348,420 513,750
----------- -----------
TOTAL COMMON STOCKS.......................... $37,874,452 $38,998,140
=========== ===========
</TABLE>
SHORT-TERM INVESTMENTS - 1.37%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
--------- -----------
<C> <S> <C>
BANKS - 1.37%
536,160 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 5.30%........ $ 536,159
-----------
TOTAL INVESTMENTS IN SECURITIES
(COST: $38,410,611) (b).................... $39,534,299
===========
</TABLE>
(a) Presently not paying dividend income.
(b) At December 31, 1999, the cost of securities for federal income tax
purposes was $38,447,457 and the aggregate gross unrealized appreciation
and depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 4,431,763
Unrealized depreciation..................................... (3,344,921)
- -------------------------------------------------------------------------
Net unrealized appreciation................................. $ 1,086,842
- -------------------------------------------------------------------------
</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 December 31, 1999.
71
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL GROWTH SERIES
Schedule of Investments
December 31, 1999
COMMON STOCKS-94.05%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
AUSTRALIA - 0.66%
196,000 Broken Hill Proprietary Co.
Ltd. -- METALS-MINING AND MISCELLANEOUS.... $ 2,157,415 $ 2,565,377
537,000 LibertyOne Ltd. (a) -- COMPUTER-SOFTWARE..... 507,517 590,374
------------ ------------
2,664,932 3,155,751
------------ ------------
BELGIUM - 0.43%
12,813 Dexia -- BANKS............................... 1,571,675 2,043,440
------------ ------------
FINLAND - 3.39%
89,000 Nokia Oyj -- TELECOMMUNICATION EQUIPMENT..... 459,999 16,058,444
------------ ------------
FRANCE - 2.55%
17,000 Axa -- FINANCIAL SERVICES.................... 1,962,653 2,358,446
20,580 Carrefour Supermarche
S.A. -- RETAIL-GROCERY..................... 2,277,388 3,777,241
9,700 Groupe Danone -- FOOD........................ 1,764,770 2,275,247
63,327 Rhone-Poulenc
S.A. (Warrants) (a) -- DRUGS............... 216,168 324,551
32,600 Sidel S.A. -- MACHINERY...................... 2,536,918 3,349,519
------------ ------------
8,757,897 12,085,004
------------ ------------
GERMANY - 1.32%
26,000 Mannesmann AG -- TELEPHONE SERVICES.......... 2,481,668 6,265,399
------------ ------------
HUNGARY - 0.61%
81,000 Matav Rt. ADR -- TELEPHONE SERVICES.......... 1,924,635 2,916,000
------------ ------------
ISRAEL - 2.21%
15,000 BATM Advanced Communications
Ltd. -- TELECOMMUNICATION EQUIPMENT........ 939,766 1,232,950
84,000 ECI Telecom Ltd. -- TELECOMMUNICATION
EQUIPMENT.................................. 1,662,746 2,656,500
92,000 Teva Pharmaceutical Industries Ltd.
ADR -- DRUGS............................... 3,578,637 6,595,250
------------ ------------
6,181,149 10,484,700
------------ ------------
ITALY - 1.80%
96,900 Mondadori (Arnoldo) Editore
S.p.A. -- PUBLISHING....................... 1,669,150 3,059,675
390,000 Telecom Italia S.p.A. -- TELEPHONE
SERVICES................................... 2,613,161 5,473,103
------------ ------------
4,282,311 8,532,778
------------ ------------
JAPAN - 25.58%
47,400 Advantest Corp. -- ELECTRONIC-CONTROLS AND
EQUIPMENT.................................. 3,229,069 12,503,542
31,200 Aiful Corp. -- FINANCIAL SERVICES............ 1,801,826 3,810,268
137,000 Canon, Inc. ADR -- OFFICE EQUIPMENT AND
SUPPLIES................................... 2,178,596 5,557,062
500 East Japan Railway Co. -- RAILROAD AND
RAILROAD EQUIPMENT......................... 2,817,632 2,691,613
5,600 Fancl Corp. (e) -- RETAIL-SPECIALTY.......... 1,744,456 1,499,096
91,000 Fujitsu Ltd. -- ELECTRONIC-COMPONENTS........ 1,403,938 4,143,032
7,000 Fujitsu Support and Service,
Inc. (e) -- BUSINESS SERVICES.............. 219,895 3,426,310
7,500 Hikari Tsushin,
Inc. (a) -- RETAIL-SPECIALTY............... 3,077,582 15,021,250
33,000 Murata Manufacturing Co.
Ltd. -- ELECTRONIC-COMPONENTS.............. 2,147,543 7,737,775
191,000 NEC Corp. -- ELECTRONIC-COMPONENTS........... 2,326,866 4,543,843
29,000 Nintendo Co. Ltd. -- TOYS.................... 3,484,930 4,810,903
493 Nippon Telegraph & Telephone
Corp. -- TELEPHONE SERVICES................ 4,176,327 8,428,997
27,000 Orix Corp. -- LEASING........................ 2,489,208 6,072,395
95,000 Sharp Corp -- ELECTRONIC-COMPONENTS.......... 2,085,613 2,427,092
30,000 Sony Corp. -- ELECTRONIC-COMPONENTS.......... 1,951,042 8,880,856
226,000 Sumitomo Bank Ltd. -- BANKS.................. 3,548,125 3,088,994
104,000 Sunkus & Associates,
Inc. -- RETAIL-MISCELLANEOUS............... 4,328,913 4,552,000
40,000 Takeda Chemical Industries Ltd. -- DRUGS..... 1,625,100 1,973,524
31,000 Tokyo Electron Ltd. -- ELECTRONIC-CONTROLS
AND EQUIPMENT.............................. 1,049,357 4,240,145
63,000 Trend Micro, Inc. -- COMPUTER-SOFTWARE....... 3,245,470 15,880,025
------------ ------------
48,931,488 121,288,722
------------ ------------
MEXICO - 1.10%
76,200 Grupo Televisa S.A.
GDR (a) -- BROADCASTING.................... 2,427,494 5,200,650
------------ ------------
</TABLE>
72
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
NETHERLANDS - 2.64%
63,000 IHC Caland N.V. -- OIL AND GAS FIELD
SERVICES................................... $ 2,132,115 $ 2,289,230
44,000 KPNQwest N.V. (a) -- TELEPHONE SERVICES...... 917,400 2,915,379
140,000 VNU N.V. -- PUBLISHING....................... 3,256,385 7,322,731
------------ ------------
6,305,900 12,527,340
------------ ------------
NORWAY - 1.19%
235,000 Petroleum Geo-Services ADR (a) -- OIL AND GAS
FIELD SERVICES............................. 3,532,063 4,185,937
130,000 Stolt Comex Seaway S.A. (a) -- OIL AND GAS
FIELD SERVICES............................. 916,705 1,438,125
------------ ------------
4,448,768 5,624,062
------------ ------------
SOUTH AFRICA - 0.38%
185,000 Sappi Ltd. -- PAPER.......................... 1,543,551 1,826,715
------------ ------------
SOUTH KOREA - 0.45%
127,800 Korea Electric Power Corp.
ADR -- UTILITIES-ELECTRIC.................. 1,717,844 2,140,650
------------ ------------
SPAIN - 3.06%
144,000 Repsol S.A. -- OIL-CRUDE PETROLEUM AND GAS... 2,247,304 3,322,835
141,699 Telefonica S.A. ADR -- TELEPHONE SERVICES.... 3,045,047 11,167,652
------------ ------------
5,292,351 14,490,487
------------ ------------
SWEDEN - 2.37%
8,000 Effnet Group
AB (a)(e) -- TELECOMMUNICATIONS............ 303,299 285,614
167,000 Ericsson (L.M.) Telephone Co. Class B
ADR -- TELECOMMUNICATION EQUIPMENT......... 1,648,547 10,969,812
------------ ------------
1,951,846 11,255,426
------------ ------------
SWITZERLAND - 0.75%
300 Roche Holding AG -- DRUGS.................... 1,568,202 3,542,200
------------ ------------
UNITED KINGDOM - 5.80%
211,700 Capita Group plc -- BUSINESS SERVICES........ 460,085 3,855,524
142,000 Dixons Group plc -- RETAIL-ELECTRIC PRODUCTS,
RADIO, TV, AUDIO........................... 1,783,438 3,407,746
36,300 Energis plc (a) -- TELEPHONE SERVICES........ 174,091 1,735,834
469,000 Orange plc (a) -- TELEPHONE SERVICES......... 1,498,620 15,858,512
365,454 Telewest Communications plc (a)(e) -- CABLE
TELEVISION................................. 1,116,261 1,943,707
109,000 Thus plc (a)(e) -- COMPUTER-SOFTWARE......... 550,507 681,620
------------ ------------
5,583,002 27,482,943
------------ ------------
UNITED STATES - 37.76%
22,200 Agile Software
Corp. (a) -- COMPUTER-SOFTWARE............. 3,798,154 4,822,603
3,000 Akamai Technologies,
Inc. (a) -- COMPUTER-SOFTWARE.............. 78,000 982,875
42,000 Alcoa, Inc. -- METALS-MINING AND
MISCELLANEOUS.............................. 2,205,769 3,486,000
132,000 Altera Corp. (a) -- ELECTRONIC-SEMICONDUCTOR
AND CAPACITOR.............................. 1,388,406 6,542,250
24,000 Applied Materials,
Inc. (a) -- ELECTRONIC-CONTROLS AND
EQUIPMENT.................................. 1,344,751 3,040,500
101,250 Baker Hughes, Inc. -- OIL AND GAS FIELD
SERVICES................................... 1,338,427 2,132,578
187,000 Bed Bath & Beyond,
Inc. (a) -- RETAIL-SPECIALTY............... 2,006,207 6,498,250
46,455 Cardinal Health, Inc. -- HEALTH CARE
SERVICES................................... 1,599,105 2,224,033
31,750 Celera Genomics (a) -- BIOMEDICS, GENETICS
RESEARCH AND DEVELOPMENT................... 411,145 4,730,750
236,950 Cheesecake Factory, Inc. (a) -- RESTAURANTS
AND FRANCHISING............................ 4,583,308 8,293,250
103,000 Chiron Corp. (a) -- DRUGS.................... 3,346,735 4,364,625
127,000 Cisco Systems,
Inc. (a) -- COMPUTER-COMMUNICATION
EQUIPMENT.................................. 340,431 13,604,875
77,000 Citrix Systems,
Inc. (a) -- COMPUTER-SOFTWARE.............. 2,575,094 9,471,000
46,000 Comcast Corp. Special Class A (a) -- CABLE
TELEVISION................................. 1,428,452 2,311,500
700 Computer Sciences Corp. (a) -- BUSINESS
SERVICES................................... 55,998 66,237
90,000 Enron Corp. -- NATURAL GAS TRANSMISSIONS..... 2,970,850 3,993,750
203,100 EOG Resources, Inc. -- OIL-CRUDE PETROLEUM
AND GAS.................................... 4,738,146 3,566,944
66,000 Global TeleSystems Group,
Inc. (a) -- TELEPHONE SERVICES............. 1,842,192 2,285,250
56,000 Guidant Corp. (a) -- MEDICAL TECHNOLOGY...... 1,992,416 2,632,000
105,200 Intuit, Inc. (a) -- COMPUTER-SOFTWARE........ 1,962,756 6,305,425
204,500 LTX Corp. (a) -- ELECTRONIC-CONTROLS AND
EQUIPMENT.................................. 3,707,240 4,575,688
41,000 MediaOne Group, Inc. (a) -- CABLE
TELEVISION................................. 1,571,350 3,149,313
</TABLE>
73
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL GROWTH SERIES (CONTINUED)
Schedule of Investments
December 31, 1999
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
56,000 Medtronic, Inc. (with rights) -- MEDICAL
TECHNOLOGY................................. $ 1,591,133 $ 2,040,500
68,000 MGC Communications, Inc. (a) -- TELEPHONE
SERVICES................................... 2,745,289 3,451,000
27,000 Motorola, Inc. -- TELECOMMUNICATION
EQUIPMENT.................................. 1,864,990 3,975,750
13,000 Next Level Communications,
Inc. (a) -- TELECOMMUNICATION EQUIPMENT.... 260,000 973,375
153,499 Outback Steakhouse, Inc. (a) -- RESTAURANTS
AND FRANCHISING............................ 3,615,369 3,981,380
127,000 PE Corp-PE Biosystems Group -- PRECISION
INSTRUMENTS-TEST, RESEARCH................. 3,972,059 15,279,688
28,438 Schlumberger Ltd. -- OIL AND GAS FIELD
SERVICES................................... 917,979 1,599,638
120,000 Starbucks Corp. (a) -- RESTAURANTS AND
FRANCHISING................................ 3,435,209 2,910,000
74,900 Sykes Enterprises, Inc. (a) -- BUSINESS
SERVICES................................... 1,524,076 3,286,238
123,000 Synopsys, Inc. (a) -- COMPUTER-SOFTWARE...... 3,207,693 8,210,250
112,000 Tandy Corp. (with
rights) -- RETAIL-SPECIALTY................ 4,333,829 5,509,000
180,000 Tellabs, Inc. (a) -- TELECOMMUNICATION
EQUIPMENT.................................. 1,210,072 11,553,750
87,000 Tidewater, Inc. -- OIL AND GAS FIELD
SERVICES................................... 2,440,452 3,132,000
5,517 Transocean Sedco Forex, Inc. -- METALS-MINING
AND MISCELLANEOUS.......................... 113,458 185,853
42,000 Univision Communications, Inc.
Class A (a) -- BROADCASTING................ 1,512,000 4,291,875
211,200 Xilinx, Inc. (a) -- ELECTRONIC-SEMICONDUCTOR
AND CAPACITOR.............................. 1,093,183 9,603,000
------------ ------------
79,121,723 179,062,993
------------ ------------
TOTAL COMMON STOCKS.......................... $187,216,435 $445,983,704
============ ============
</TABLE>
PREFERRED STOCKS-2.05%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ------------ ------------
<C> <S> <C> <C>
BRAZIL - 0.65%
24,000 Telecomunicacoes Brasileiras S.A. ADR
Preferred -- TELECOMMUNICATIONS........... $ 1,513,298 $ 3,084,000
------------ ------------
GERMANY - 1.40%
10,900 SAP AG Preferred -- COMPUTER-SOFTWARE....... 617,665 6,615,788
------------ ------------
TOTAL PREFERRED STOCKS....................... 2,130,963 9,699,788
------------ ------------
TOTAL LONG-TERM INVESTMENTS.................. $189,347,398 $455,683,492
============ ============
</TABLE>
SHORT-TERM INVESTMENTS-3.91%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
----------- ------------
<C> <S> <C>
BANKS - 3.00%
$14,236,894 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 5.30%........ $ 14,236,894
------------
DIVERSIFIED FINANCE - 0.90%
4,237,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.01%...................... 4,237,000
------------
TOTAL SHORT-TERM INVESTMENTS................. 18,473,894
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$207,821,292)(b)........................... $474,157,386
============
</TABLE>
74
<PAGE>
- --------------------------------------------------------------------------------
(a) Presently not paying dividend income.
(b) At December 31, 1999, the cost of securities for federal income tax
purposes was $207,861,982 and the aggregate gross unrealized appreciation
and depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $268,880,701
Unrealized depreciation..................................... (2,585,297)
- --------------------------------------------------------------------------
Net unrealized appreciation................................. $266,295,404
- --------------------------------------------------------------------------
</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 8,000 Effnet Group AB $ 303,299
1999 5,600 Fancl Corp. 1,744,456
1998 7,000 Fujitsu Support and Service, Inc. 219,895
1999 365,454 Telewest Communications plc 1,116,261
1999 109,000 Thus plc 550,507
</TABLE>
The aggregate value of these securities at December 31, 1999, was
$7,836,347, which represents 1.65% of total net assets.
75
<PAGE>
FORTIS SERIES FUND, INC.
LARGE CAP GROWTH SERIES
Schedule of Investments
December 31, 1999
COMMON STOCKS-97.21%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ----------- -----------
<C> <S> <C> <C>
AEROSPACE AND EQUIPMENT - 2.45%
32,800 United Technologies Corp..................... $ 1,888,597 $ 2,132,000
----------- -----------
AIRLINES - 0.89%
15,200 Continental Airlines, Inc. Class B (a)....... 590,884 674,500
1,300 UAL Corp. (a)................................ 84,971 100,831
----------- -----------
675,855 775,331
----------- -----------
AUTOMOBILE MANUFACTURERS - 0.98%
15,900 Ford Motor Co................................ 819,616 849,656
----------- -----------
BANKS - 1.81%
15,197 Bank of America Corp......................... 1,012,922 762,699
8,100 Chase Manhattan Corp......................... 633,898 629,269
7,600 U.S. Bancorp................................. 177,657 180,975
----------- -----------
1,824,477 1,572,943
----------- -----------
BROADCASTING - 2.74%
3,900 AMFM, Inc. (a)............................... 265,858 305,175
36,700 AT&T Corp. - Liberty Media Group (a)......... 933,356 2,082,725
----------- -----------
1,199,214 2,387,900
----------- -----------
BROKERAGE AND INVESTMENT - 1.88%
9,200 Goldman Sachs Group, Inc..................... 593,240 866,525
9,200 Merrill Lynch & Co., Inc..................... 682,310 768,200
----------- -----------
1,275,550 1,634,725
----------- -----------
BUILDING MATERIALS - 1.28%
43,800 Masco Corp................................... 1,080,397 1,111,425
----------- -----------
BUSINESS SERVICES - 0.15%
4,900 IMS Health, Inc.............................. 127,435 133,219
----------- -----------
CABLE TELEVISION - 3.01%
34,100 MediaOne Group, Inc. (a)..................... 2,540,109 2,619,306
----------- -----------
COMPUTER-COMMUNICATION
EQUIPMENT - 2.76%
22,400 Cisco Systems, Inc. (a)...................... 712,199 2,399,600
----------- -----------
COMPUTER-HARDWARE - 8.27%
97,000 Dell Computer Corp. (a)...................... 3,695,991 4,947,000
11,600 EMC Corp. (a)................................ 457,967 1,267,300
4,400 International Business Machines Corp......... 445,596 475,200
6,600 Sun Microsystems, Inc. (a)................... 375,375 511,087
----------- -----------
4,974,929 7,200,587
----------- -----------
COMPUTER-SOFTWARE - 5.52%
13,600 America Online, Inc. (a)..................... 732,968 1,025,950
28,800 Microsoft Corp. (a).......................... 2,379,924 3,362,400
3,700 Oracle Corp. (a)............................. 271,766 414,631
----------- -----------
3,384,658 4,802,981
----------- -----------
CONSUMER GOODS - 0.06%
800 Colgate-Palmolive Co......................... 30,758 52,000
----------- -----------
DIVERSIFIED COMPANIES - 3.61%
80,900 Tyco International Ltd....................... 2,881,368 3,144,987
----------- -----------
DRUGS - 9.12%
29,500 Bristol-Myers Squibb Co...................... 1,881,369 1,893,531
42,500 Pfizer, Inc. (with rights)................... 1,589,950 1,378,594
65,600 Schering-Plough Corp......................... 3,187,792 2,767,500
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ----------- -----------
<C> <S> <C> <C>
23,200 Warner-Lambert Co............................ $ 1,704,882 $ 1,900,950
----------- -----------
8,363,993 7,940,575
----------- -----------
ELECTRIC-PRODUCTS - 1.35%
20,437 Honeywell International, Inc................. 1,257,076 1,178,959
----------- -----------
ELECTRICAL EQUIPMENT - 0.12%
700 General Electric Co.......................... 51,215 108,325
----------- -----------
ELECTRONIC-COMPONENTS - 0.99%
9,100 Solectron Corp. (a).......................... 651,102 865,637
----------- -----------
ELECTRONIC-CONTROLS AND
EQUIPMENT - 1.34%
9,200 Applied Materials, Inc. (a).................. 972,063 1,165,525
----------- -----------
ELECTRONIC-SEMICONDUCTOR AND CAPACITOR -
3.43%
36,300 Intel Corp................................... 2,280,836 2,987,944
----------- -----------
FINANCIAL SERVICES - 15.34%
111,612 Associates First Capital Corp. Class A....... 4,210,123 3,062,354
45,100 C.I.T. Group, Inc............................ 1,165,134 952,738
43,500 Citigroup, Inc............................... 1,934,867 2,416,969
5,800 Fannie Mae................................... 402,003 362,138
26,500 Freddie Mac.................................. 1,464,326 1,247,156
7,800 Household International, Inc................. 336,981 290,550
72,100 MBNA Corp.................................... 1,729,839 1,964,725
21,400 Morgan Stanley Dean Witter & Co.............. 1,955,534 3,054,850
----------- -----------
13,198,807 13,351,480
----------- -----------
INSURANCE - 1.70%
13,700 American International Group, Inc............ 1,225,510 1,481,313
----------- -----------
MEDIA - 2.50%
10,200 Clear Channel Communications, Inc. (a) 731,290 910,350
3,700 Gannett Co., Inc............................. 253,028 301,781
13,300 Time Warner, Inc............................. 896,581 963,419
----------- -----------
1,880,899 2,175,550
----------- -----------
MEDICAL TECHNOLOGY - 1.03%
24,600 Medtronic, Inc. (with rights)................ 892,334 896,363
----------- -----------
RETAIL-CLOTHING - 2.44%
46,200 Gap, Inc..................................... 1,795,847 2,125,200
----------- -----------
RETAIL-DEPARTMENT STORES - 1.03%
12,400 Kohl's Corp. (a)............................. 736,240 895,125
----------- -----------
RETAIL-DISCOUNT STORES - 2.65%
16,300 Costco Wholesale Corp. (a)................... 1,298,866 1,487,375
11,900 Wal-Mart Stores, Inc......................... 400,390 822,588
----------- -----------
1,699,256 2,309,963
----------- -----------
RETAIL-GROCERY - 1.17%
53,800 Kroger Co. (a)............................... 1,438,689 1,015,475
----------- -----------
RETAIL-SPECIALTY - 6.88%
42,450 Home Depot, Inc.............................. 1,769,871 2,910,478
38,100 Lowe's Companies, Inc........................ 1,967,908 2,276,475
27,400 Walgreen Co.................................. 662,192 801,450
----------- -----------
4,399,971 5,988,403
----------- -----------
TELECOMMUNICATION EQUIPMENT - 5.04%
23,100 Nokia Corp. ADR.............................. 1,864,261 4,389,000
----------- -----------
</TABLE>
76
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ----------- -----------
<C> <S> <C> <C>
TELECOMMUNICATIONS - 1.48%
4,900 Lucent Technologies, Inc..................... $ 299,652 $ 366,581
18,700 Vodafone AirTouch plc ADR.................... 871,518 925,650
----------- -----------
1,171,170 1,292,231
----------- -----------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ----------- -----------
<C> <S> <C> <C>
TELEPHONE SERVICES - 2.72%
15,900 MCI WorldCom, Inc. (a)....................... $ 854,634 $ 843,694
22,700 Sprint Corp.................................. 1,576,026 1,527,994
----------- -----------
2,430,660 2,371,688
----------- -----------
TOBACCO - 1.47%
55,200 Philip Morris Companies, Inc................. 1,745,867 1,279,950
----------- -----------
TOTAL COMMON STOCKS.......................... $71,470,958 $84,635,366
=========== ===========
</TABLE>
SHORT-TERM INVESTMENTS-2.82%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
---------- -----------
<C> <S> <C>
BANKS - 2.21%
$1,921,021 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 5.30%........ $ 1,921,021
-----------
INVESTMENT COMPANY - 0.61%
536,271 First American Prime Obligation Fund, Current
rate -- 5.47%.............................. 536,271
-----------
TOTAL SHORT-TERM INVESTMENTS................. 2,457,292
-----------
TOTAL INVESTMENTS IN SECURITIES (COST:
$73,928,250)(B)............................ $87,092,658
===========
</TABLE>
(a) Presently not paying dividend income.
(b) At December 31, 1999, the cost of securities for federal income tax
purposes was $74,001,025 and the aggregate gross unrealized appreciation
and depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $16,949,307
Unrealized depreciation..................................... (3,857,674)
- -------------------------------------------------------------------------
Net unrealized appreciation................................. $13,091,633
- -------------------------------------------------------------------------
</TABLE>
(c) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets. Market value of investments in foreign
securities represents 6.10% of total net assets as of December 31, 1999.
77
<PAGE>
FORTIS SERIES FUND, INC.
GROWTH STOCK SERIES
Schedule of Investments
December 31, 1999
COMMON STOCKS-94.52%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- --------------- ---------------
<C> <S> <C> <C>
ADVERTISING-PUBLIC RELATIONS - 4.56%
141,800 Cox Radio, Inc. (a).......................... $ 6,112,345 $ 14,144,550
90,000 TMP Worldwide, Inc. (a)...................... 6,792,729 12,780,000
292,500 Young & Rubicam, Inc......................... 8,395,736 20,694,375
--------------- ---------------
21,300,810 47,618,925
--------------- ---------------
AIR FREIGHT - 0.61%
35,400 Atlas Air, Inc. (a).......................... 1,145,025 971,287
135,000 Biomet, Inc.................................. 5,229,183 5,400,000
--------------- ---------------
6,374,208 6,371,287
--------------- ---------------
BANKS - 1.11%
195,800 Zions Bancorporation......................... 10,995,632 11,588,912
--------------- ---------------
BIOMEDICS, GENETICS RESEARCH AND DEVELOPMENT
- 1.39%
45,000 Affymetrix, Inc. (a)......................... 4,736,531 7,635,937
45,000 Human Genome Sciences, Inc. (a).............. 6,206,907 6,868,125
--------------- ---------------
10,943,438 14,504,062
--------------- ---------------
BROADCASTING - 5.23%
78,800 Cumulus Media, Inc. Class A (a) 3,897,932 3,999,100
93,300 Emmis Communications Corp. Class A (a)....... 7,218,946 11,628,970
112,500 Hispanic Broadcasting Corp. (a).............. 6,462,410 10,374,609
112,500 UnitedGlobalCom, Inc. (a).................... 6,501,333 7,945,312
202,500 Univision Communications, Inc.
Class A (a)................................ 6,256,009 20,692,969
--------------- ---------------
30,336,630 54,640,960
--------------- ---------------
BUSINESS SERVICES - 3.92%
135,000 Healtheon/WebMD Corp. (a).................... 6,731,159 5,062,500
90,000 iXL Enterprises, Inc. (a).................... 4,490,975 4,995,000
22,500 Official Payments Corp. (a).................. 337,500 1,170,000
67,500 Redback Networks, Inc. (a)................... 9,694,714 11,981,250
225,000 USWeb Corp. (a).............................. 8,522,321 9,998,437
90,000 Verio, Inc. (a).............................. 4,771,827 4,156,875
45,000 Visual Networks, Inc. (a).................... 3,307,500 3,566,250
--------------- ---------------
37,855,996 40,930,312
--------------- ---------------
COMPUTER-COMMUNICATION EQUIPMENT - 0.52%
135,000 StarMedia Network, Inc. (a).................. 6,082,182 5,408,437
--------------- ---------------
COMPUTER-SOFTWARE - 24.10%
142,100 AppNet, Inc. (a)............................. 7,105,000 6,216,875
213,800 BEA Systems, Inc. (a)........................ 2,516,181 14,952,637
67,500 Check Point Software Technologies
Ltd. (a)................................... 3,617,034 13,415,625
112,500 Comverse Technology, Inc. (a) 5,383,447 16,284,375
31,500 Data Return Corp. (a)........................ 1,274,895 1,685,250
22,500 DoubleClick, Inc. (a)........................ 3,984,048 5,693,906
88,100 Egreetings Network, Inc. (a)................. 1,026,915 892,012
39,400 Electronic Arts, Inc. (a).................... 2,755,926 3,309,600
90,000 i2 Technologies, Inc. (a).................... 6,075,491 17,550,000
45,000 Inktomi Corp. (a)............................ 2,934,423 3,993,750
139,000 Intertrust Technologies Corp. (a)............ 7,854,007 16,349,875
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- --------------- ---------------
<C> <S> <C> <C>
135,000 ISS Group, Inc. (a).......................... $ 4,527,120 $ 9,601,875
135,000 J.D. Edwards & Co. (a)....................... 3,897,919 4,033,125
90,000 Legato Systems, Inc. (a)..................... 4,676,625 6,193,125
26,100 Liberate Technologies, Inc. (a) 2,803,263 6,707,700
71,700 Mediaplex, Inc. (a).......................... 4,191,022 4,499,175
135,000 Mercury Interactive Corp. (a)................ 4,815,118 14,571,562
247,500 New Era of Networks, Inc. (with
rights) (a)................................ 11,799,288 11,787,187
180,000 Open Market, Inc. (a)........................ 6,180,239 8,122,500
248,500 Peregrine Systems, Inc. (a).................. 10,333,952 20,532,313
162,000 Portal Software, Inc. (a).................... 9,609,836 16,665,750
141,900 SciQuest.com, Inc. (a)....................... 4,675,135 11,281,050
180,000 Siebel Systems, Inc. (a)..................... 4,412,887 15,120,000
112,600 TSI International Software Ltd. (a).......... 6,911,346 6,375,975
124,650 USinternetworking, Inc. (a).................. 4,229,729 8,709,919
135,000 Whittman-Hart, Inc. (a)...................... 8,973,478 7,239,375
--------------- ---------------
136,564,324 251,784,536
--------------- ---------------
DRUGS - 5.96%
153,000 Biovail Corp. International (a).............. 7,998,025 14,343,750
225,000 Jones Pharma, Inc............................ 7,608,392 9,773,438
70,850 King Pharmaceuticals, Inc. (a)............... 2,235,714 3,972,028
135,000 MedImmune, Inc. (a).......................... 5,974,313 22,393,125
118,200 QLT PhotoTherapeutics, Inc. (a) 3,591,278 6,944,250
135,000 Watson Pharmaceuticals, Inc. (a)............. 5,337,673 4,834,688
--------------- ---------------
32,745,395 62,261,279
--------------- ---------------
ELECTRICAL-COMPONENTS AND PARTS - 4.01%
135,000 Analog Devices, Inc. (a)..................... 6,026,577 12,555,000
360,000 Celestica, Inc. (a).......................... 7,433,908 19,980,000
202,400 Flextronics International Ltd. (a) 6,849,975 9,310,400
--------------- ---------------
20,310,460 41,845,400
--------------- ---------------
ELECTRONIC-COMMUNICATION SECURITY - 2.71%
148,300 VeriSign, Inc. (a)........................... 7,883,797 28,288,225
--------------- ---------------
ELECTRONIC-COMPONENTS - 0.42%
135,000 Methode Electronics, Inc..................... 3,669,214 4,336,875
--------------- ---------------
ELECTRONIC-CONTROLS AND EQUIPMENT - 0.95%
15,700 Credence Systems Corp. (a)................... 1,269,043 1,358,050
90,000 Harmonic, Inc. (a)........................... 6,396,120 8,544,375
--------------- ---------------
7,665,163 9,902,425
--------------- ---------------
ELECTRONIC-SEMICONDUCTOR AND CAPACITOR -
6.79%
99,000 Applied Micro Circuits Corp. (a) 3,304,216 12,597,750
328,400 Atmel Corp. (a).............................. 5,061,279 9,708,325
180,000 LSI Logic Corp. (a).......................... 6,646,249 12,150,000
103,400 SDL, Inc. (a)................................ 5,803,604 22,541,200
247,500 Vishay Intertechnology, Inc. (a) 4,259,760 7,827,188
135,000 Xilinx, Inc. (a)............................. 2,409,186 6,138,281
--------------- ---------------
27,484,294 70,962,744
--------------- ---------------
</TABLE>
78
<PAGE>
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- --------------- ---------------
<C> <S> <C> <C>
FINANCIAL SERVICES - 1.89%
135,000 Ambac Financial Group, Inc................... $ 7,827,425 $ 7,045,313
247,500 AmeriCredit Corp. (a)........................ 3,886,063 4,578,750
315,000 Concord EFS, Inc. (a)........................ 7,389,318 8,111,250
1,700 Franklin Resources, Inc...................... 25,769 54,506
--------------- ---------------
19,128,575 19,789,819
--------------- ---------------
FOOD - 0.19%
112,500 International Home Foods, Inc. (a)........... 1,742,370 1,954,688
--------------- ---------------
FREIGHT CARRIERS - 1.13%
270,000 Expeditors International of Washington,
Inc........................................ 8,456,901 11,829,375
--------------- ---------------
HEALTH CARE SERVICES - 0.88%
135,000 Bausch & Lomb, Inc........................... 8,982,924 9,239,063
--------------- ---------------
HOTEL AND GAMING - 1.13%
90,000 MGM Grand, Inc. (a).......................... 4,641,309 4,528,125
585,000 Park Place Entertainment Corp. (a)........... 6,653,621 7,312,500
--------------- ---------------
11,294,930 11,840,625
--------------- ---------------
INSURANCE - 0.73%
225,000 St. Paul Companies, Inc...................... 7,551,257 7,579,688
--------------- ---------------
MEDIA - 1.36%
393,750 Infinity Broadcasting Corp. Class A (a)...... 7,140,477 14,248,828
--------------- ---------------
MEDICAL SUPPLIES - 1.58%
90,000 ALZA Corp. (a)............................... 2,850,039 3,116,250
315,000 Mallinckrodt Group, Inc...................... 9,332,321 10,020,938
135,000 Sybron International Corp. (a)............... 3,189,483 3,332,813
--------------- ---------------
15,371,843 16,470,001
--------------- ---------------
METALS-FABRICATING - 1.32%
260,800 Waters Corp. (a)............................. 7,882,505 13,822,400
--------------- ---------------
OIL AND GAS FIELD
SERVICES - 1.77%
270,000 BJ Services Co. (a).......................... 10,446,282 11,289,375
180,000 Weatherford International, Inc. (a).......... 6,229,941 7,188,750
--------------- ---------------
16,676,223 18,478,125
--------------- ---------------
OIL-OFFSHORE DRILLING - 3.50%
270,000 ENSCO International, Inc..................... 5,786,298 6,176,250
180,000 Marine Drilling Companies, Inc. (a).......... 3,926,947 4,038,750
405,000 Nabors Industries, Inc. (a).................. 10,045,514 12,529,688
315,000 Noble Drilling Corp. (a)..................... 7,387,196 10,316,250
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- --------------- ---------------
<C> <S> <C> <C>
135,000 Santa Fe International Corp.................. $ 3,381,877 $ 3,493,125
--------------- ---------------
30,527,832 36,554,063
--------------- ---------------
PRECISION INSTRUMENTS-TEST, RESEARCH - 2.87%
360,000 National Instruments Corp. (a) 6,982,616 13,770,000
135,000 PE Corp-PE Biosystems Group 8,416,604 16,242,188
--------------- ---------------
15,399,220 30,012,188
--------------- ---------------
PRINTING - 1.87%
135,000 Electronics for Imaging, Inc. (a) 5,855,693 7,846,875
45,000 Lexmark International Group Class A (a)...... 3,811,833 4,072,500
180,000 Valassis Communications, Inc. (a)............ 6,135,862 7,605,000
--------------- ---------------
15,803,388 19,524,375
--------------- ---------------
PUBLISHING - 0.77%
135,000 Knight Ridder, Inc........................... 7,036,593 8,032,500
--------------- ---------------
RETAIL-DEPARTMENT
STORES - 0.16%
23,200 Kohl's Corp. (a)............................. 1,213,211 1,674,750
--------------- ---------------
RETAIL-SPECIALTY - 1.02%
21,700 Bed Bath & Beyond, Inc. (a).................. 837,112 754,075
144,900 Home Depot, Inc.............................. 1,909,090 9,934,706
--------------- ---------------
2,746,202 10,688,781
--------------- ---------------
TELECOMMUNICATION
EQUIPMENT - 5.49%
270,000 Advanced Fibre Communications, Inc. (a)...... 8,253,479 12,065,625
225,000 CIENA Corp. (a).............................. 9,509,011 12,937,500
180,000 CommScope, Inc. (a).......................... 4,739,157 7,256,250
90,000 Nextel Communications, Inc. (a).............. 3,969,281 9,281,250
90,000 QUALCOMM, Inc. (a)........................... 3,571,675 15,862,500
--------------- ---------------
30,042,603 57,403,125
--------------- ---------------
TELECOMMUNICATIONS - 2.93%
383,400 Amdocs Ltd. (a).............................. 8,999,216 13,227,300
92,300 Aspect Communications, Corp. 3,799,776 3,611,238
136,400 Inet Technologies, Inc. (a).................. 5,718,644 9,530,950
92,500 Triton PCS Holdings, Inc. (a)................ 3,790,828 4,208,750
--------------- ---------------
22,308,464 30,578,238
--------------- ---------------
UTILITIES-ELECTRIC - 1.65%
270,000 Calpine Corp. (a)............................ 10,185,734 17,280,000
--------------- ---------------
TOTAL COMMON STOCKS.......................... $ 599,702,795 $ 987,445,011
=============== ===============
</TABLE>
79
<PAGE>
FORTIS SERIES FUND, INC.
GROWTH STOCK SERIES (CONTINUED)
Schedule of Investments
December 31, 1999
SHORT-TERM INVESTMENTS-5.80%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
----------- ---------------
<C> <S> <C>
BANKS - 0.84%
$8,739,703 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 5.30%........ $ 8,739,703
---------------
DIVERSIFIED FINANCE - 0.00%
33,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.01%...................... 33,000
---------------
U.S. GOVERNMENT AGENCY - 4.96%
24,000,000 Federal Home Loan Bank, 5.83%, 1-14-2000..... 23,946,520
7,500,000 Federal Home Loan Mortgage Corp., 5.77%,
1-10-2000.................................. 7,488,187
7,500,000 Federal Home Loan Mortgage Corp., 5.86%,
1-28-2000.................................. 7,466,517
13,000,000 Federal National Mortgage Association, 5.86%,
1-20-2000.................................. 12,958,400
---------------
51,859,624
---------------
TOTAL SHORT-TERM INVESTMENTS................. 60,632,327
---------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$660,335,122) (b).......................... $ 1,048,077,338
===============
</TABLE>
(a) Presently not paying dividend income.
(b) At December 31, 1999, the cost of securities for federal income tax
purposes was $660,523,978 and the aggregate gross unrealized appreciation
and depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $397,500,083
Unrealized depreciation..................................... (9,946,723)
- --------------------------------------------------------------------------
Net unrealized appreciation................................. $387,553,360
- --------------------------------------------------------------------------
</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 5.23 % of total net assets as of December 31, 1999.
80
<PAGE>
FORTIS SERIES FUND, INC.
AGGRESSIVE GROWTH SERIES
Schedule of Investments
December 31, 1999
COMMON STOCKS-99.37%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ------------ ------------
<C> <S> <C> <C>
ADVERTISING-PUBLIC RELATIONS - 0.44%
62,500 Interep National Radio Sales, Inc.
Class A (a)................................ $ 760,703 $ 835,937
18,000 Media Metrix, Inc. (a)....................... 909,000 643,500
------------ ------------
1,669,703 1,479,437
------------ ------------
AEROSPACE AND EQUIPMENT - 0.64%
45,000 The Titan Corp. (a).......................... 1,502,451 2,120,625
------------ ------------
AIR FREIGHT - 1.27%
57,500 Eagle USA Airfreight, Inc. (a)............... 1,396,129 2,479,687
40,500 Forward Air Corp. (a)........................ 881,252 1,756,687
------------ ------------
2,277,381 4,236,374
------------ ------------
APPAREL - 0.83%
29,500 Bebe Stores, Inc. (a)........................ 1,018,698 796,500
43,200 Kenneth Cole Productions, Inc.
Class A (a)................................ 1,152,589 1,976,400
------------ ------------
2,171,287 2,772,900
------------ ------------
BANKS - 1.08%
72,300 Silicon Valley Bancshares.................... 3,044,451 3,578,850
------------ ------------
BIOMEDICS, GENETICS RESEARCH AND DEVELOPMENT
- 4.92%
130,000 Bio-Technology General Corp. (a)............. 2,032,966 1,982,500
150,000 Cell Genesys, Inc. (a)....................... 2,079,375 1,921,875
43,700 CuraGen Corp. (a)............................ 1,658,695 3,048,075
54,000 Enzon, Inc. (a).............................. 1,619,909 2,342,250
50,000 Invitrogen Corp. (a)......................... 1,879,845 3,000,000
58,700 Protein Design Labs, Inc. (a)................ 2,594,961 4,109,000
------------ ------------
11,865,751 16,403,700
------------ ------------
BROADCASTING - 3.86%
54,000 Citadel Communications Corp. (a)............. 2,159,355 3,503,250
30,000 Emmis Communications Corp. Class A (a)....... 1,869,510 3,739,219
40,250 Radio One, Inc. (a).......................... 1,478,220 3,703,000
66,500 Radio Unica Communications Corp. (a) 1,805,147 1,920,187
------------ ------------
7,312,232 12,865,656
------------ ------------
BROKERAGE AND INVESTMENT - 0.92%
81,000 Eaton Vance Corp............................. 2,577,262 3,078,000
------------ ------------
BUILDING MATERIALS - 0.23%
77,000 Dal-Tile International, Inc. (a)............. 912,198 779,625
------------ ------------
BUSINESS SERVICES - 13.32%
31,000 c-Bridge Internet Solutions, Inc. (a)........ 1,048,876 1,507,375
30,000 Caliper Technologies Corp. (a)............... 1,428,906 2,002,500
40,500 Cognizant Technology Solutions Corp. (a)..... 1,393,312 4,427,156
45,000 Diamond Technology Partners, Inc. (a) 1,151,517 3,867,187
32,500 eBenX, Inc. (a).............................. 1,209,582 1,470,625
62,500 El Sitio, Inc. (a)........................... 1,414,062 2,296,875
7,600 FreeShop.com, Inc. (a)....................... 277,242 364,800
82,500 iXL Enterprises, Inc. (a).................... 3,034,038 4,578,750
34,500 Micrel, Inc. (a)............................. 1,188,656 1,964,344
200,000 Netplex Group, Inc. (a)...................... 1,590,630 2,225,000
17,750 OnDisplay, Inc. (a).......................... 814,537 1,613,031
21,700 Preview Systems, Inc. (a).................... 905,950 1,407,787
39,700 Primus Knowledge Solutions, Inc. (a)......... 1,979,995 1,798,906
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ------------ ------------
<C> <S> <C> <C>
45,500 Proxicom, Inc. (a)........................... $ 2,858,062 $ 5,656,219
40,000 Reckson Service Industries, Inc. (a)......... 1,735,376 2,495,000
57,000 Student Advantage, Inc. (a).................. 823,562 1,264,687
25,000 Tanning Technology Corp. (a)................. 1,251,789 1,473,438
50,000 Visual Networks, Inc. (a).................... 2,917,030 3,962,500
------------ ------------
27,023,122 44,376,180
------------ ------------
CHEMICALS-SPECIALTY - 0.41%
177,000 U.S. Plastic Lumber Co. (a).................. 1,831,520 1,360,688
------------ ------------
COMPUTER-HARDWARE - 2.00%
58,000 Advanced Digital Information Corp. (a) 1,311,294 2,820,250
68,000 Mercury Computer Systems, Inc. (a)........... 1,015,283 2,380,000
45,000 SmartDisk Corp. (a).......................... 1,544,282 1,473,750
------------ ------------
3,870,859 6,674,000
------------ ------------
COMPUTER-SOFTWARE - 19.34%
31,000 Active Software, Inc. (a).................... 1,325,199 2,852,000
40,000 Actuate Corp. (a)............................ 824,802 1,715,000
121,000 American Software, Inc. (a).................. 1,252,223 1,240,250
54,600 AppNet, Inc. (a)............................. 2,743,282 2,388,750
43,700 Art Technology Group, Inc. (a)............... 1,902,330 5,681,000
50,000 Backweb Technologies Ltd. (a)............... 1,921,796 2,106,250
14,400 Bluestone Software, Inc. (a)................. 886,743 1,656,000
32,000 Broadbase Software, Inc. (a)................. 793,695 3,600,000
40,000 Business Objects S.A. ADR (a)................ 1,202,972 5,345,000
30,000 Cysive, Inc. (a)............................. 510,000 2,161,875
42,500 Daleen Technologies, Inc. (a)................ 827,937 929,688
85,850 Egreetings Network, Inc. (a)................. 944,875 869,231
19,000 Keynote Systems, Inc. (a).................... 688,750 1,401,250
41,500 Lifeminders.com, Inc. (a).................... 1,028,497 2,396,625
48,000 Macrovision Corp. (a)........................ 1,078,426 3,552,000
28,000 Mercury Interactive Corp. (a)................ 601,369 3,022,250
24,500 Micromuse, Inc. (a).......................... 1,557,344 4,165,000
20,000 Mission Critical Software, Inc. (a).......... 1,140,000 1,400,000
41,500 Netegrity, Inc. (a).......................... 1,823,595 2,362,906
110,000 Open Market, Inc. (a)........................ 2,010,188 4,963,750
5,350 OpenTV Corp. (a)............................. 107,000 429,338
17,500 Quest Software, Inc. (a)..................... 702,344 1,785,000
50,000 Sagent Technology, Inc. (a).................. 1,294,687 1,496,875
62,700 WebTrends Corp. (a).......................... 3,557,588 5,078,700
50,000 Wind River Systems, Inc. (a)................. 1,815,155 1,837,500
------------ ------------
32,540,797 64,436,238
------------ ------------
DRUGS - 5.52%
50,000 Accredo Health, Inc. (a)..................... 939,062 1,537,500
57,500 Alkermes, Inc. (a)........................... 1,968,497 2,824,688
60,000 Cephalon, Inc. (a)........................... 996,426 2,073,750
60,000 Dusa Pharmaceuticals, Inc. (a)............... 1,393,046 1,710,000
70,000 Jones Pharma, Inc............................ 1,826,762 3,040,625
140,000 Noven Pharmaceuticals, Inc. (a).............. 2,056,015 2,537,500
50,300 Pharmacyclics, Inc. (a)...................... 1,695,306 2,074,875
70,000 Viropharma, Inc. (a)......................... 2,048,438 2,590,000
------------ ------------
12,923,552 18,388,938
------------ ------------
EDUCATIONAL SERVICES - 1.11%
59,500 Career Education Corp. (a)................... 1,565,097 2,283,313
44,000 National Information Consortium, Inc. (a).... 534,000 1,408,000
------------ ------------
2,099,097 3,691,313
------------ ------------
</TABLE>
81
<PAGE>
FORTIS SERIES FUND, INC.
AGGRESSIVE GROWTH SERIES (CONTINUED)
Schedule of Investments
December 31, 1999
COMMON STOCKS-CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ------------ ------------
<C> <S> <C> <C>
ELECTRONIC COMPONENTS - 4.83%
22,500 Crossroads Systems, Inc. (a)................. $ 823,750 $ 1,901,250
16,000 CTS Corp..................................... 799,213 1,206,000
28,000 Electro Scientific Industries, Inc. (a)...... 1,696,062 2,044,000
44,000 Emulex Corp. (a)............................. 1,450,427 4,950,000
20,000 Finisar Corp. (a)............................ 1,526,875 1,797,500
13,000 QLogic Corp. (a)............................. 1,004,938 2,078,375
30,000 Silicon Image, Inc. (a)...................... 1,182,032 2,101,875
------------ ------------
8,483,297 16,079,000
------------ ------------
ELECTRONIC-CONTROLS AND EQUIPMENT - 0.66%
25,500 Credence Systems Corp. (a)................... 1,237,813 2,205,750
------------ ------------
ELECTRONIC-SEMICONDUCTOR AND CAPACITOR -
6.59%
35,150 Alpha Industries, Inc. (a)................... 977,594 2,014,534
26,000 Applied Micro Circuits Corp. (a)............. 717,738 3,308,500
36,000 Exar Corp. (a)............................... 1,041,138 2,119,500
58,000 Kopin Corp. (a).............................. 964,098 2,436,000
28,000 Sandisk Corp. (a)............................ 1,904,000 2,695,000
38,000 TranSwitch Corp. (a)......................... 1,620,094 2,757,375
47,300 TriQuint Semiconductor, Inc. (a)............. 1,463,201 5,262,125
100,000 Xicor, Inc. (a).............................. 1,398,122 1,368,750
------------ ------------
10,085,985 21,961,784
------------ ------------
FINANCIAL SERVICES - 1.74%
94,000 American Capital Strategies Ltd.............. 1,713,041 2,138,500
80,000 IndyMac Mortgage Holdings, Inc. (a).......... 1,250,623 1,020,000
70,000 Multex.com, Inc. (a)......................... 1,635,378 2,633,750
------------ ------------
4,599,042 5,792,250
------------ ------------
HEALTH CARE SERVICES - 1.46%
51,000 Hooper Holmes, Inc........................... 1,080,435 1,313,250
95,000 Medarex, Inc. (a)............................ 1,567,656 3,538,750
------------ ------------
2,648,091 4,852,000
------------ ------------
MACHINERY - 1.54%
38,000 Advanced Energy Industries, Inc. (a)......... 800,713 1,871,500
49,500 Asyst Technologies, Inc. (a)................. 1,802,991 3,245,344
------------ ------------
2,603,704 5,116,844
------------ ------------
MEDICAL SUPPLIES - 3.02%
39,000 Abgenix, Inc. (a)............................ 893,687 5,167,500
50,000 INAMED Corp. (a)............................. 1,790,625 2,193,750
117,200 PolyMedica Corp. (a)......................... 2,409,876 2,710,250
------------ ------------
5,094,188 10,071,500
------------ ------------
MEDICAL TECHNOLOGY - 1.97%
107,500 ArthoCare Corp. (a).......................... 4,335,880 6,557,500
------------ ------------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ------------ ------------
<C> <S> <C> <C>
RETAIL-CLOTHING - 0.95%
82,500 Charlotte Russe Holding, Inc. (a)............ $ 1,051,381 $ 1,732,500
82,500 Too, Inc. (a)................................ 1,429,638 1,423,125
------------ ------------
2,481,019 3,155,625
------------ ------------
RETAIL-ELECTRIC PRODUCTS, RADIO, TV, AUDIO -
0.36%
66,500 Electronics Boutique Holdings Corp. (a)...... 1,585,918 1,197,000
------------ ------------
RETAIL-MISCELLANEOUS - 1.35%
79,950 Insight Enterprises, Inc. (a)................ 1,915,319 3,247,969
26,000 Zale Corp. (a)............................... 995,813 1,257,750
------------ ------------
2,911,132 4,505,719
------------ ------------
RETAIL-SPECIALTY - 0.93%
30,000 CyberSource Corp. (a)........................ 1,770,000 1,552,500
78,300 Vitaminshoppe.com, Inc. (a).................. 856,231 714,488
50,000 Webvan Group, Inc. (a)....................... 1,002,406 825,000
------------ ------------
3,628,637 3,091,988
------------ ------------
TELECOMMUNICATION EQUIPMENT - 5.06%
42,500 Advanced Fibre Communications, Inc. (a)...... 895,607 1,899,219
44,000 AudioCodes Ltd. (a).......................... 2,373,770 4,048,000
29,400 Clarent Corp. (a)............................ 1,997,086 2,285,850
62,500 CommScope, Inc. (a).......................... 1,480,459 2,519,531
17,500 Next Level Communications, Inc. (a).......... 666,800 1,310,313
40,000 Ortel Corp. (a).............................. 2,562,751 4,800,000
------------ ------------
9,976,473 16,862,913
------------ ------------
TELECOMMUNICATIONS - 3.51%
40,000 ECtel Ltd. (a)............................... 494,282 730,000
10,900 Gilat Communications Ltd. (a)................ 152,430 262,281
37,000 Ibasis, Inc. (a)............................. 592,000 1,063,750
38,400 Inet Technologies, Inc. (a).................. 2,214,236 2,683,200
63,500 MCK Communications, Inc. (a)................. 1,522,844 1,428,750
37,500 Net2Phone, Inc. (a).......................... 2,062,500 1,722,656
25,500 Polycom, Inc. (a)............................ 1,011,101 1,624,031
53,700 Z-Tel Technologies, Inc. (a)................. 1,114,581 2,168,138
------------ ------------
9,163,974 11,682,806
------------ ------------
TOYS - 0.72%
128,500 Jakks Pacific, Inc. (a)...................... 2,214,142 2,401,344
------------ ------------
UTILITIES-ELECTRIC - 0.94%
17,000 Calpine Corp. (a)............................ 684,043 1,088,000
61,500 Independent Energy Holdings, plc ADR (a)..... 1,363,313 2,048,719
------------ ------------
2,047,356 3,136,719
------------ ------------
TOTAL COMMON STOCKS.......................... 186,718,314 304,913,266
============ ============
</TABLE>
82
<PAGE>
SHORT-TERM INVESTMENTS - 8.26%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
----------- ------------
<C> <S> <C>
BANKS - 3.91%
$13,015,899 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 5.30%........ $ 13,015,899
------------
DIVERSIFIED FINANCE - 4.35%
14,501,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.01%...................... 14,501,000
------------
TOTAL SHORT-TERM INVESTMENTS................. 27,516,899
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$214,235,213)(b)........................... $332,430,165
============
</TABLE>
(a) Presently not paying dividend income.
(b) At December 31, 1999, the cost of securities for federal income tax
purposes was $214,606,313 and the aggregate gross unrealized appreciation
and depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation.......................................... $123,034,128
Unrealized depreciation.......................................... (5,210,276)
- ------------------------------------------------------------------------------
Net unrealized appreciation...................................... $117,823,852
- ------------------------------------------------------------------------------
</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 2.30% of total net assets as of December 31, 1999.
83
<PAGE>
FORTIS SERIES FUND, INC.
Statements of Assets and Liabilities
December 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
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).................... $124,079,559 $140,062,091 $99,580,576 $24,281,697 $ 66,870,717
Foreign currency on deposit with
custodian........................... -- -- -- 194,089 --
Collateral for securities lending
transactions (Note 1)............... -- -- -- -- --
Receivables:
Unrealized appreciation on forward
foreign currency contracts
(Notes 1 and 3)................... -- -- -- 56,309 --
Investment securities sold.......... -- -- -- -- --
Interest and dividends.............. 79,984 1,151,558 1,652,951 461,820 1,354,288
------------ ------------ ------------ ----------- ------------
TOTAL ASSETS............................ 124,159,543 141,213,649 101,233,527 24,993,915 68,225,005
------------ ------------ ------------ ----------- ------------
LIABILITIES:
Unrealized depreciation on forward
foreign currency contracts (Notes 1
and 3).............................. -- -- -- 30,996 --
Payable upon return of securities
loaned (Note 1)..................... -- -- -- -- --
Payable for investment securities
purchased........................... -- 2,450,000 -- -- --
Payable for investment advisory and
management fees (Note 2)............ 29,048 55,692 41,317 16,269 29,019
Accounts payable and accrued
expenses............................ 25,880 50,029 39,060 21,074 29,887
------------ ------------ ------------ ----------- ------------
TOTAL LIABILITIES....................... 54,928 2,555,721 80,377 68,339 58,906
------------ ------------ ------------ ----------- ------------
NET ASSETS:
Net proceeds of capital stock, par
value $.01 per share-authorized
20,000,000,000 shares; **........... 119,694,006 153,327,066 109,516,163 26,478,029 75,699,886
Unrealized appreciation (depreciation)
of investments in securities and
other assets and liabilities
denominated in foreign currency..... -- (3,004,141) (4,426,057) (1,264,190) (3,163,712)
Undistributed (excess of distributions
over) net investment income......... 4,466,661 8,329,737 7,438,940 357,578 6,530,561
Accumulated net realized gain (loss)
from sale of investments and foreign
currency............................ (56,052) (19,994,734) (11,375,896) (645,841) (10,900,636)
------------ ------------ ------------ ----------- ------------
TOTAL NET ASSETS........................ $124,104,615 $138,657,928 $101,153,150 $24,925,576 $ 68,166,099
============ ============ ============ =========== ============
NET ASSET VALUE PER SHARE............... $11.20 $10.13 $10.91 $10.26 $9.09
============ ============ ============ =========== ============
*Cost................................... $124,079,559 $143,066,232 $104,006,633 $25,565,634 $ 70,034,429
**Outstanding shares.................... 11,079,259 13,692,934 9,273,517 2,428,631 7,496,362
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
84
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
GLOBAL
ASSET ASSET GROWTH & S & P BLUE CHIP
ALLOCATION ALLOCATION VALUE INCOME 500 INDEX STOCK
SERIES SERIES SERIES SERIES SERIES SERIES
----------- ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments in securities, as detailed
in the accompanying schedules, at
market* (Note 1).................... $63,974,118 $690,645,017 $94,579,960 $317,048,950 $424,803,556 $285,190,049
Foreign currency on deposit with
custodian........................... 797,137 -- -- -- -- --
Collateral for securities lending
transactions (Note 1)............... -- -- 18,295,700 52,941,130 78,570,012 53,312,651
Receivables:
Unrealized appreciation on forward
foreign currency contracts
(Notes 1 and 3)................... 189,408 -- -- -- -- --
Investment securities sold.......... 493,776 556,331 -- -- 36,090 498,770
Interest and dividends.............. 709,681 3,978,332 90,664 387,825 399,207 172,649
----------- ------------ ------------ ------------ ------------ ------------
TOTAL ASSETS............................ 66,164,120 695,179,680 112,966,324 370,377,905 503,808,865 339,174,119
----------- ------------ ------------ ------------ ------------ ------------
LIABILITIES:
Unrealized depreciation on forward
foreign currency contracts (Notes 1
and 3).............................. 10,711 -- -- -- -- --
Payable upon return of securities
loaned (Note 1)..................... -- -- 18,295,700 52,941,130 78,570,012 53,312,651
Payable for investment securities
purchased........................... -- 14,811,110 -- -- 254,994 1,377,671
Payable for investment advisory and
management fees (Note 2)............ 50,773 261,102 54,479 167,054 139,077 202,336
Accounts payable and accrued
expenses............................ 35,938 150,756 33,013 83,976 71,393 52,192
----------- ------------ ------------ ------------ ------------ ------------
TOTAL LIABILITIES....................... 97,422 15,222,968 18,383,192 53,192,160 79,035,476 54,944,850
----------- ------------ ------------ ------------ ------------ ------------
NET ASSETS:
Net proceeds of capital stock, par
value $.01 per share-authorized
20,000,000,000 shares; **........... 61,173,567 443,929,207 79,472,187 208,884,710 305,030,797 202,367,535
Unrealized appreciation (depreciation)
of investments in securities and
other assets and liabilities
denominated in foreign currency..... 3,575,411 129,051,400 9,073,467 65,880,376 112,423,330 76,940,581
Undistributed (excess of distributions
over) net investment income......... (92,419) 15,806,752 777,519 4,402,984 3,112,410 10,313
Accumulated net realized gain (loss)
from sale of investments and foreign
currency............................ 1,410,139 91,169,353 5,259,959 38,017,675 4,206,852 4,910,840
----------- ------------ ------------ ------------ ------------ ------------
TOTAL NET ASSETS........................ $66,066,698 $679,956,712 $94,583,132 $317,185,745 $424,773,389 $284,229,269
=========== ============ ============ ============ ============ ============
NET ASSET VALUE PER SHARE............... $13.17 $22.78 $15.65 $21.94 $22.66 $21.93
=========== ============ ============ ============ ============ ============
*Cost................................... $60,559,802 $561,593,617 $85,506,493 $251,168,574 $312,511,051 $208,249,467
**Outstanding shares.................... 5,016,325 29,847,054 6,043,086 14,456,313 18,744,635 12,958,021
<S> <C> <C>
INTERNATIONAL MID CAP
STOCK STOCK
SERIES SERIES
------------ -----------
ASSETS:
Investments in securities, as detailed
in the accompanying schedules, at
market* (Note 1).................... $143,791,081 $24,806,653
Foreign currency on deposit with
custodian........................... -- --
Collateral for securities lending
transactions (Note 1)............... -- --
Receivables:
Unrealized appreciation on forward
foreign currency contracts
(Notes 1 and 3)................... -- --
Investment securities sold.......... 132,288 --
Interest and dividends.............. 416,053 30,297
------------ -----------
TOTAL ASSETS............................ 144,339,422 24,836,950
------------ -----------
LIABILITIES:
Unrealized depreciation on forward
foreign currency contracts (Notes 1
and 3).............................. 2,863 --
Payable upon return of securities
loaned (Note 1)..................... -- --
Payable for investment securities
purchased........................... 219,039 --
Payable for investment advisory and
management fees (Note 2)............ 97,244 17,938
Accounts payable and accrued
expenses............................ 51,249 19,505
------------ -----------
TOTAL LIABILITIES....................... 370,395 37,443
------------ -----------
NET ASSETS:
Net proceeds of capital stock, par
value $.01 per share-authorized
20,000,000,000 shares; **........... 102,145,023 21,668,574
Unrealized appreciation (depreciation)
of investments in securities and
other assets and liabilities
denominated in foreign currency..... 34,503,095 2,412,291
Undistributed (excess of distributions
over) net investment income......... 4,293,891 1,150
Accumulated net realized gain (loss)
from sale of investments and foreign
currency............................ 3,027,018 717,492
------------ -----------
TOTAL NET ASSETS........................ $143,969,027 $24,799,507
============ ===========
NET ASSET VALUE PER SHARE............... $17.94 $10.68
============ ===========
*Cost................................... $109,273,255 $22,426,212
**Outstanding shares.................... 8,027,243 2,321,799
</TABLE>
85
<PAGE>
FORTIS SERIES FUND, INC.
Statements of Assets and Liabilities (continued)
December 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
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).................... $39,534,299 $474,157,386 $87,092,658 $1,048,077,338 $332,430,165
Foreign currency on deposit with
custodian........................... -- -- -- -- --
Collateral for securities lending
transactions (Note 1)............... -- 78,002,223 -- -- 52,985,551
Receivables:
Unrealized appreciation on forward
foreign currency contracts
(Notes 1 and 3)................... -- -- -- -- --
Investment securities sold.......... 148,916 -- -- 8,129,051 8,600,187
Interest and dividends.............. 55,529 408,710 45,656 305,295 92,266
----------- ------------ ----------- -------------- ------------
TOTAL ASSETS............................ 39,738,744 552,568,319 87,138,314 1,056,511,684 394,108,169
----------- ------------ ----------- -------------- ------------
LIABILITIES:
Unrealized depreciation on forward
foreign currency contracts (Notes 1
and 3).............................. -- -- -- -- --
Payable upon return of securities
loaned (Note 1)..................... -- 78,002,223 -- -- 52,985,551
Payable for investment securities
purchased........................... 523,300 -- -- 11,068,421 7,754,782
Payable for investment advisory and
management fees (Note 2)............ 28,689 259,241 62,029 497,742 158,372
Accounts payable and accrued
expenses............................ 16,165 126,554 15,261 217,527 51,525
----------- ------------ ----------- -------------- ------------
TOTAL LIABILITIES....................... 568,154 78,388,018 77,290 11,783,690 60,950,230
----------- ------------ ----------- -------------- ------------
NET ASSETS:
Net proceeds of capital stock, par
value $.01 per share-authorized
20,000,000,000 shares; **........... 36,823,274 157,463,468 72,516,812 487,717,916 132,929,020
Unrealized appreciation (depreciation)
of investments in securities and
other assets and liabilities
denominated in foreign currency..... 1,123,688 266,318,606 13,164,408 387,742,216 118,194,952
Undistributed (excess of distributions
over) net investment income......... 7,618 3,558,566 -- -- --
Accumulated net realized gain (loss)
from sale of investments and foreign
currency............................ 1,216,010 46,839,661 1,379,804 169,267,862 82,033,967
----------- ------------ ----------- -------------- ------------
TOTAL NET ASSETS........................ $39,170,590 $474,180,301 $87,061,024 $1,044,727,994 $333,157,939
=========== ============ =========== ============== ============
NET ASSET VALUE PER SHARE............... $10.20 $34.72 $15.05 $45.14 $33.79
=========== ============ =========== ============== ============
*Cost................................... $38,410,611 $207,821,292 $73,928,250 $ 660,335,122 $214,235,213
**Outstanding shares.................... 3,838,536 13,656,496 5,783,459 23,144,916 9,859,699
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
86
<PAGE>
FORTIS SERIES FUND, INC.
Statements of Operations
For the Year Ended December 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
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..................... $4,789,510 $ 9,105,051 $8,030,502 $1,209,889 $ 6,888,089
Dividend Income..................... -- -- -- -- 49,229
Fee income (Note 1)................. -- -- -- -- --
---------- ------------ ----------- ----------- -----------
Total Income *........................ 4,789,510 9,105,051 8,030,502 1,209,889 6,937,318
---------- ------------ ----------- ----------- -----------
Expenses:
Investment advisory and management
fees (Note 2)..................... 274,499 689,891 518,738 191,654 355,332
Legal and auditing fees (Note 2).... 18,945 31,100 25,250 21,648 21,695
Custodian fees...................... 7,125 7,600 6,550 6,600 3,500
Shareholders' notices and reports... 17,725 34,100 28,797 5,600 20,750
Directors' fees and expenses........ 2,958 4,900 6,600 3,795 2,300
Other............................... 1,192 6,460 4,803 1,057 3,075
---------- ------------ ----------- ----------- -----------
Total Expenses........................ 322,444 774,051 590,738 230,354 406,652
---------- ------------ ----------- ----------- -----------
NET INVESTMENT INCOME (LOSS)............ 4,467,066 8,331,000 7,439,764 979,535 6,530,666
---------- ------------ ----------- ----------- -----------
REALIZED & UNREALIZED GAIN (LOSS) ON
INVESTMENTS &
FOREIGN CURRENCY TRANSACTIONS: (NOTE 1)
NET REALIZED GAIN (LOSS) FROM:
Investments......................... -- (2,701,403) (2,835,772) (645,841) (9,316,276)
Foreign currency transactions....... -- -- -- 372,943 --
Future contracts.................... -- -- -- -- --
---------- ------------ ----------- ----------- -----------
NET REALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS..... -- (2,701,403) (2,835,772) (272,898) (9,316,276)
---------- ------------ ----------- ----------- -----------
NET CHANGES IN UNREALIZED APPRECIATION
(DEPRECIATION) OF:
Investments......................... -- (8,562,127) (6,518,809) (1,139,768) 3,551,263
Translation of assets and
liabilities denominated in foreign
currency.......................... -- -- -- (1,529,853) --
---------- ------------ ----------- ----------- -----------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS......... -- (8,562,127) (6,518,809) (2,669,621) 3,551,263
---------- ------------ ----------- ----------- -----------
NET GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY...................... -- (11,263,530) (9,354,581) (2,942,519) (5,765,013)
---------- ------------ ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. $4,467,066 $(2,932,530) $(1,914,817) $(1,962,984) $ 765,653
========== ============ =========== =========== ===========
</TABLE>
<TABLE>
*Net of foreign witholding taxes of:
<S> <C>
Global Bond Series $ 166
Global Asset Allocation Series 64,930
Asset Allocation Series 922
Value Series 12,125
Growth & Income Series 45,270
S & P 500 Index Series 33,119
Blue Chip Stock Series 6,739
International Stock Series 266,821
Mid Cap Stock Series 159
Global Growth Series 208,441
Large Cap Growth Series 2,661
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
87
<PAGE>
FORTIS SERIES FUND, INC.
Statements of Operations (continued)
For the Year Ended December 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
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..................... $1,401,064 $15,776,087 $152,355 $ 844,675 $ 363,127
Dividend Income..................... 834,974 3,221,036 1,319,251 5,594,028 4,278,587
Fee income (Note 1)................. -- -- 13,753 103,403 37,392
----------- ------------ ---------- ------------ -----------
Total Income *........................ 2,236,038 18,997,123 1,485,359 6,542,106 4,679,106
----------- ------------ ---------- ------------ -----------
Expenses:
Investment advisory and management
fees (Note 2)..................... 614,231 2,887,514 638,668 1,971,921 1,359,937
Legal and auditing fees (Note 2).... 24,800 56,900 26,100 36,900 38,500
Custodian fees...................... 34,374 39,400 12,100 23,300 63,700
Shareholders' notices and reports... 16,200 160,700 23,650 82,400 69,214
Directors' fees and expenses........ 2,200 19,250 3,000 10,050 9,912
Other............................... 3,056 25,680 3,891 13,504 24,879
----------- ------------ ---------- ------------ -----------
Total Expenses........................ 694,861 3,189,444 707,409 2,138,075 1,566,142
----------- ------------ ---------- ------------ -----------
NET INVESTMENT INCOME (LOSS)............ 1,541,177 15,807,679 777,950 4,404,031 3,112,964
----------- ------------ ---------- ------------ -----------
REALIZED & UNREALIZED GAIN (LOSS) ON
INVESTMENTS &
FOREIGN CURRENCY TRANSACTIONS: (NOTE 1)
NET REALIZED GAIN (LOSS) FROM:
Investments......................... 3,811,915 91,173,105 6,011,807 38,018,834 3,677,306
Foreign currency transactions....... (489,824) -- -- -- --
Future contracts.................... -- -- -- -- 759,388
----------- ------------ ---------- ------------ -----------
NET REALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS..... 3,322,091 91,173,105 6,011,807 38,018,834 4,436,694
----------- ------------ ---------- ------------ -----------
NET CHANGES IN UNREALIZED APPRECIATION
(DEPRECIATION) OF:
Investments......................... (4,982,451) 5,530,133 823,492 (10,859,212) 56,694,432
Translation of assets and
liabilities denominated in foreign
currency.......................... (452,529) -- -- -- --
----------- ------------ ---------- ------------ -----------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS......... (5,434,980) 5,530,133 823,492 (10,859,212) 56,694,432
----------- ------------ ---------- ------------ -----------
NET GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY...................... (2,112,889) 96,703,238 6,835,299 27,159,622 61,131,126
----------- ------------ ---------- ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. $ (571,712) $112,510,917 $7,613,249 $31,563,653 $64,244,090
=========== ============ ========== ============ ===========
</TABLE>
<TABLE>
*Net of foreign witholding taxes of:
<S> <C>
Global Bond Series $ 166
Global Asset Allocation Series 64,930
Asset Allocation Series 922
Value Series 12,125
Growth & Income Series 45,270
S & P 500 Index Series 33,119
Blue Chip Stock Series 6,739
International Stock Series 266,821
Mid Cap Stock Series 159
Global Growth Series 208,441
Large Cap Growth Series 2,661
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
88
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
BLUE CHIP INTERNATIONAL MID CAP SMALL CAP GLOBAL LARGE CAP GROWTH
STOCK STOCK STOCK VALUE GROWTH GROWTH STOCK
SERIES SERIES SERIES SERIES SERIES SERIES SERIES
----------- ----------- ---------- ---------- ------------ ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME (LOSS):
Income:
Interest income..................... $ 476,221 $ 199,832 $ 42,886 $ 86,545 $ 632,296 $ 146,338 $ 2,086,247
Dividend Income..................... 1,868,605 2,361,263 198,116 635,320 1,998,078 287,914 1,601,308
Fee income (Note 1)................. 29,942 -- -- -- 71,132 -- --
----------- ----------- ---------- ---------- ------------ ----------- ------------
Total Income *........................ 2,374,768 2,561,095 241,002 721,865 2,701,506 434,252 3,687,555
----------- ----------- ---------- ---------- ------------ ----------- ------------
Expenses:
Investment advisory and management
fees (Note 2)..................... 2,030,551 979,010 162,691 248,146 2,486,130 443,837 4,716,919
Legal and auditing fees (Note 2).... 33,843 25,800 18,036 17,872 41,100 17,780 69,396
Custodian fees...................... 27,100 52,500 24,250 16,600 66,700 10,950 44,000
Shareholders' notices and reports... 43,950 26,700 3,900 3,105 101,200 4,416 221,400
Directors' fees and expenses........ 7,860 3,850 697 948 11,250 1,558 24,200
Other............................... 9,057 4,385 4,521 940 14,570 1,407 31,384
----------- ----------- ---------- ---------- ------------ ----------- ------------
Total Expenses........................ 2,152,361 1,092,245 214,095 287,611 2,720,950 479,948 5,107,299
----------- ----------- ---------- ---------- ------------ ----------- ------------
NET INVESTMENT INCOME (LOSS)............ 222,407 1,468,850 26,907 434,254 (19,444) (45,696) (1,419,744)
----------- ----------- ---------- ---------- ------------ ----------- ------------
REALIZED & UNREALIZED GAIN (LOSS) ON
INVESTMENTS &
FOREIGN CURRENCY TRANSACTIONS: (NOTE 1)
NET REALIZED GAIN (LOSS) FROM:
Investments......................... 9,056,380 6,767,940 1,061,904 2,175,194 50,463,560 3,223,783 171,292,228
Foreign currency transactions....... (837) (34,717) -- -- (3,931) -- --
Future contracts.................... -- -- 21,075 -- -- -- --
----------- ----------- ---------- ---------- ------------ ----------- ------------
NET REALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS..... 9,055,543 6,733,223 1,082,979 2,175,194 50,459,629 3,223,783 171,292,228
----------- ----------- ---------- ---------- ------------ ----------- ------------
NET CHANGES IN UNREALIZED APPRECIATION
(DEPRECIATION) OF:
Investments......................... 35,138,575 18,437,445 1,449,522 1,395,459 126,263,652 9,918,613 207,427,522
Translation of assets and
liabilities denominated in foreign
currency.......................... (3) (28,222) -- -- (28,114) -- --
----------- ----------- ---------- ---------- ------------ ----------- ------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS......... 35,138,572 18,409,223 1,449,522 1,395,459 126,235,538 9,918,613 207,427,522
----------- ----------- ---------- ---------- ------------ ----------- ------------
NET GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY...................... 44,194,115 25,142,446 2,532,501 3,570,653 176,695,167 13,142,396 378,719,750
----------- ----------- ---------- ---------- ------------ ----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. $44,416,522 $26,611,296 $2,559,408 $4,004,907 $176,675,723 $13,096,700 $377,300,006
=========== =========== ========== ========== ============ =========== ============
<S> <C>
AGGRESSIVE
GROWTH
SERIES
------------
NET INVESTMENT INCOME (LOSS):
Income:
Interest income..................... $ 490,321
Dividend Income..................... 240,024
Fee income (Note 1)................. 183,137
------------
Total Income *........................ 913,482
------------
Expenses:
Investment advisory and management
fees (Note 2)..................... 1,209,725
Legal and auditing fees (Note 2).... 26,700
Custodian fees...................... 38,700
Shareholders' notices and reports... 37,790
Directors' fees and expenses........ 5,829
Other............................... 6,671
------------
Total Expenses........................ 1,325,415
------------
NET INVESTMENT INCOME (LOSS)............ (411,933)
------------
REALIZED & UNREALIZED GAIN (LOSS) ON
INVESTMENTS &
FOREIGN CURRENCY TRANSACTIONS: (NOTE 1)
NET REALIZED GAIN (LOSS) FROM:
Investments......................... 82,466,554
Foreign currency transactions....... --
Future contracts.................... --
------------
NET REALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS..... 82,466,554
------------
NET CHANGES IN UNREALIZED APPRECIATION
(DEPRECIATION) OF:
Investments......................... 85,867,903
Translation of assets and
liabilities denominated in foreign
currency.......................... --
------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS......... 85,867,903
------------
NET GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY...................... 168,334,457
------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. $167,922,524
============
</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 FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss).................... $ 4,467,066 $ 3,352,699 $ 8,331,000 $ 7,969,014
Net realized gain (loss) on
investments and foreign
currency transactions..... -- -- (2,701,403) 2,483,190
Net change in unrealized
appreciation
(depreciation) on
investments and foreign
currency.................. -- -- (8,562,127) 1,611,008
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS.................. 4,467,066 3,352,699 (2,932,530) 12,063,212
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment
income.................... (3,352,892) (3,313,814) (7,970,078) (8,884,962)
From net realized gains..... -- -- -- --
------------ ------------ ------------ ------------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS................ (3,352,892) (3,313,814) (7,970,078) (8,884,962)
------------ ------------ ------------ ------------
CAPITAL STOCK SOLD AND
REPURCHASED: (NOTE 5)
Proceeds from sale of
shares.................... 123,316,203 69,216,897 14,558,760 33,885,181
Proceeds from shares issued
as a result of reinvested
dividends................. 3,352,892 3,313,814 7,970,078 8,884,962
Less cost of repurchase..... (80,775,789) (52,481,696) (25,640,605) (35,345,954)
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM SHARES
TRANSACTIONS................ 45,893,306 20,049,015 (3,111,767) 7,424,189
------------ ------------ ------------ ------------
TOTAL INCREASE (DECREASE) IN
NET ASSETS.................. 47,007,480 20,087,900 (14,014,375) 10,602,439
NET ASSETS:
Beginning of year........... 77,097,135 57,009,235 152,672,303 142,069,864
------------ ------------ ------------ ------------
END OF YEAR (NOTE 4).......... $124,104,615 $ 77,097,135 $138,657,928 $152,672,303
------------ ------------ ------------ ------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
GLOBAL ASSET
ALLOCATION SERIES ASSET ALLOCATION SERIES
<CAPTION>
- -----------------------------------------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1999 1998 1999 1998
----------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss).................... $ 1,541,177 $ 1,292,507 $ 15,807,679 $ 13,723,737
Net realized gain (loss) on
investments and foreign
currency transactions..... 3,322,091 4,146,706 91,173,105 45,251,936
Net change in unrealized
appreciation
(depreciation) on
investments and foreign
currency.................. (5,434,980) 3,438,127 5,530,133 37,652,297
----------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS.................. (571,712) 8,877,340 112,510,917 96,627,970
----------- ----------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment
income.................... (1,140,332) (1,388,012) (13,724,526) (180,867)
From net realized gains..... (3,771,667) (3,400,505) (45,255,570) (863,229)
----------- ----------- ------------ ------------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS................ (4,911,999) (4,788,517) (58,980,096) (1,044,096)
----------- ----------- ------------ ------------
CAPITAL STOCK SOLD AND
REPURCHASED: (NOTE 5)
Proceeds from sale of
shares.................... 6,913,214 12,350,058 37,098,520 45,570,701
Proceeds from shares issued
as a result of reinvested
dividends................. 4,911,999 4,788,517 58,980,096 1,044,096
Less cost of repurchase..... (9,361,059) (4,623,535) (63,530,595) (30,600,830)
----------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM SHARES
TRANSACTIONS................ 2,464,154 12,515,040 32,548,021 16,013,967
----------- ----------- ------------ ------------
TOTAL INCREASE (DECREASE) IN
NET ASSETS.................. (3,019,557) 16,603,863 86,078,842 111,597,841
NET ASSETS:
Beginning of year........... 69,086,255 52,482,392 593,877,870 482,280,029
----------- ----------- ------------ ------------
END OF YEAR (NOTE 4).......... $66,066,698 $69,086,255 $679,956,712 $593,877,870
----------- ----------- ------------ ------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
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 FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1999 1998 1999 1998 1999 1998
------------ ------------ ----------- ----------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss).................... $ 7,439,764 $ 7,229,885 $ 979,535 $ 914,829 $ 6,530,666 $ 6,362,736
Net realized gain (loss) on
investments and foreign
currency transactions..... (2,835,772) 938,352 (272,898) 323,132 (9,316,276) (1,571,961)
Net change in unrealized
appreciation
(depreciation) on
investments and foreign
currency.................. (6,518,809) (1,442,471) (2,669,621) 1,621,443 3,551,263 (4,554,635)
------------ ------------ ----------- ----------- ------------ -----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS.................. (1,914,817) 6,725,766 (1,962,984) 2,859,404 765,653 236,140
------------ ------------ ----------- ----------- ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment
income.................... (7,230,117) (7,342,970) (848,100) (386,998) (6,362,707) (5,343,079)
From net realized gains..... -- -- (190,104) (678,922) -- (417,351)
------------ ------------ ----------- ----------- ------------ -----------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS................ (7,230,117) (7,342,970) (1,038,204) (1,065,920) (6,362,707) (5,760,430)
------------ ------------ ----------- ----------- ------------ -----------
CAPITAL STOCK SOLD AND
REPURCHASED: (NOTE 5)
Proceeds from sale of
shares.................... 8,203,478 14,339,798 7,725,482 6,654,648 9,174,964 20,135,740
Proceeds from shares issued
as a result of reinvested
dividends................. 7,230,117 7,342,970 1,038,204 1,065,920 6,362,707 5,760,430
Less cost of repurchase..... (20,317,888) (11,083,127) (5,496,119) (5,546,824) (12,757,216) (8,617,622)
------------ ------------ ----------- ----------- ------------ -----------
NET INCREASE (DECREASE) IN NET
ASSETS FROM SHARES
TRANSACTIONS................ (4,884,293) 10,599,641 3,267,567 2,173,744 2,780,455 17,278,548
------------ ------------ ----------- ----------- ------------ -----------
TOTAL INCREASE (DECREASE) IN
NET ASSETS.................. (14,029,227) 9,982,437 266,379 3,967,228 (2,816,599) 11,754,258
NET ASSETS:
Beginning of year........... 115,182,377 105,199,940 24,659,197 20,691,969 70,982,698 59,228,440
------------ ------------ ----------- ----------- ------------ -----------
END OF YEAR (NOTE 4).......... $101,153,150 $115,182,377 $24,925,576 $24,659,197 $ 68,166,099 $70,982,698
------------ ------------ ----------- ----------- ------------ -----------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
VALUE SERIES GROWTH & INCOME SERIES S & P 500 INDEX SERIES
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1999 1998 1999 1998 1999 1998
------------ ----------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss).................... $ 777,950 $ 956,048 $ 4,404,031 $ 7,013,204 $ 3,112,964 $ 2,065,302
Net realized gain (loss) on
investments and foreign
currency transactions..... 6,011,807 1,481,511 38,018,834 13,057,181 4,436,694 1,689,078
Net change in unrealized
appreciation
(depreciation) on
investments and foreign
currency.................. 823,492 3,744,569 (10,859,212) 14,165,370 56,694,432 40,983,076
------------ ----------- ------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS.................. 7,613,249 6,182,128 31,563,653 34,235,755 64,244,090 44,737,456
------------ ----------- ------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment
income.................... (9,862) (946,617) (7,014,251) -- (21,459) (2,050,052)
From net realized gains..... (58,557) (995,235) (13,057,923) (87,128) (39,341) (1,703,968)
------------ ----------- ------------ ------------ ------------ ------------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS................ (68,419) (1,941,852) (20,072,174) (87,128) (60,800) (3,754,020)
------------ ----------- ------------ ------------ ------------ ------------
CAPITAL STOCK SOLD AND
REPURCHASED: (NOTE 5)
Proceeds from sale of
shares.................... 9,921,251 34,538,243 13,270,103 48,859,144 149,288,394 123,716,587
Proceeds from shares issued
as a result of reinvested
dividends................. 68,419 1,941,852 20,072,174 87,128 60,800 3,754,020
Less cost of repurchase..... (10,555,761) (8,173,880) (40,587,501) (15,125,776) (41,591,071) (25,193,834)
------------ ----------- ------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM SHARES
TRANSACTIONS................ (566,091) 28,306,215 (7,245,224) 33,820,496 107,758,123 102,276,773
------------ ----------- ------------ ------------ ------------ ------------
TOTAL INCREASE (DECREASE) IN
NET ASSETS.................. 6,978,739 32,546,491 4,246,255 67,969,123 171,941,413 143,260,209
NET ASSETS:
Beginning of year........... 87,604,393 55,057,902 312,939,490 244,970,367 252,831,976 109,571,767
------------ ----------- ------------ ------------ ------------ ------------
END OF YEAR (NOTE 4).......... $ 94,583,132 $87,604,393 $317,185,745 $312,939,490 $424,773,389 $252,831,976
------------ ----------- ------------ ------------ ------------ ------------
</TABLE>
91
<PAGE>
FORTIS SERIES FUND, INC.
Statements of Changes in Net Assets (continued)
<TABLE>
<CAPTION>
<S> <C> <C>
BLUE CHIP STOCK SERIES
<CAPTION>
- ---------------------------------------------------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1999 1998
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income
(loss).................... $ 222,407 $ 525,376
Net realized gain (loss) on
investments and foreign
currency transactions..... 9,055,543 2,556,871
Net change in unrealized
appreciation
(depreciation) on
investments and foreign
currency.................. 35,138,572 29,808,565
------------ ------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS.................. 44,416,522 32,890,812
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment
income.................... (220,698) (540,313)
From net realized gains..... (3,844,293) (2,496,974)
------------ ------------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS................ (4,064,991) (3,037,287)
------------ ------------
CAPITAL STOCK SOLD AND
REPURCHASED: (NOTE 5)
Proceeds from sale of
shares.................... 64,900,685 74,531,512
Proceeds from shares issued
as a result of reinvested
dividends................. 4,064,991 3,037,287
Less cost of repurchase..... (8,009,329) (3,229,540)
------------ ------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM SHARES
TRANSACTIONS................ 60,956,347 74,339,259
------------ ------------
TOTAL INCREASE (DECREASE) IN
NET ASSETS.................. 101,307,878 104,192,784
NET ASSETS:
Beginning of year........... 182,921,391 78,728,607
------------ ------------
END OF YEAR (NOTE 4).......... $284,229,269 $182,921,391
------------ ------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
GLOBAL GROWTH SERIES
<CAPTION>
- ---------------------------------------------------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1999 1998
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income
(loss).................... $ (19,444) $ 427,898
Net realized gain (loss) on
investments and foreign
currency transactions..... 50,459,629 9,073,881
Net change in unrealized
appreciation
(depreciation) on
investments and foreign
currency.................. 126,235,538 27,726,943
------------ ------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS.................. 176,675,723 37,228,722
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment
income.................... (417,907) (390,427)
From net realized gains..... (8,202,447) --
------------ ------------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS................ (8,620,354) (390,427)
------------ ------------
CAPITAL STOCK SOLD AND
REPURCHASED: (NOTE 5)
Proceeds from sale of
shares.................... 20,006,821 13,480,954
Proceeds from shares issued
as a result of reinvested
dividends................. 8,620,354 390,427
Less cost of repurchase..... (73,978,397) (52,488,092)
------------ ------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM SHARES
TRANSACTIONS................ (45,351,222) (38,616,711)
------------ ------------
TOTAL INCREASE (DECREASE) IN
NET ASSETS.................. 122,704,147 (1,778,416)
NET ASSETS:
Beginning of year........... 351,476,154 353,254,570
------------ ------------
END OF YEAR (NOTE 4).......... $474,180,301 $351,476,154
------------ ------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
92
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
INTERNATIONAL STOCK SERIES MID CAP STOCK SERIES SMALL CAP VALUE SERIES
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
FOR THE FOR THE
PERIOD PERIOD
MARCH 25, MARCH 25,
1998 1998
FOR THE FOR THE FOR THE (INCEPTION) FOR THE (INCEPTION)
YEAR ENDED YEAR ENDED YEAR ENDED TO YEAR ENDED TO
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1999 1998 1999 1998 1999 1998
------------ ------------ ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss).................... $ 1,468,850 $ 1,103,290 $ 26,907 $ 21,697 $ 434,254 $ 121,277
Net realized gain (loss) on
investments and foreign
currency transactions..... 6,733,223 5,355,546 1,082,979 (365,487) 2,175,194 415,685
Net change in unrealized
appreciation
(depreciation) on
investments and foreign
currency.................. 18,409,223 6,940,525 1,449,522 962,769 1,395,459 (271,771)
------------ ------------ ----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS.................. 26,611,296 13,399,361 2,559,408 618,979 4,004,907 265,191
------------ ------------ ----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment
income.................... (96,791) (1,711,172) (25,757) (22,320) (427,926) (119,987)
From net realized gains..... (61,734) (5,357,302) -- -- (1,273,708) (101,161)
------------ ------------ ----------- ----------- ----------- -----------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS................ (158,525) (7,068,474) (25,757) (22,320) (1,701,634) (221,148)
------------ ------------ ----------- ----------- ----------- -----------
CAPITAL STOCK SOLD AND
REPURCHASED: (NOTE 5)
Proceeds from sale of
shares.................... 31,597,091 26,302,212 10,685,974 12,640,460 21,473,557 16,846,539
Proceeds from shares issued
as a result of reinvested
dividends................. 158,525 7,068,474 25,757 22,320 1,701,634 221,148
Less cost of repurchase..... (17,294,891) (15,788,470) (1,441,062) (264,252) (2,811,337) (608,267)
------------ ------------ ----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET
ASSETS FROM SHARES
TRANSACTIONS................ 14,460,725 17,582,216 9,270,669 12,398,528 20,363,854 16,459,420
------------ ------------ ----------- ----------- ----------- -----------
TOTAL INCREASE (DECREASE) IN
NET ASSETS.................. 40,913,496 23,913,103 11,804,320 12,995,187 22,667,127 16,503,463
NET ASSETS:
Beginning of year........... 103,055,531 79,142,428 12,995,187 -- 16,503,463 --
------------ ------------ ----------- ----------- ----------- -----------
END OF YEAR (NOTE 4).......... $143,969,027 $103,055,531 $24,799,507 $12,995,187 $39,170,590 $16,503,463
------------ ------------ ----------- ----------- ----------- -----------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
LARGE CAP GROWTH SERIES GROWTH STOCK SERIES AGGRESSIVE GROWTH SERIES
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
FOR THE
PERIOD
MARCH 25,
1998
FOR THE (INCEPTION) FOR THE FOR THE FOR THE FOR THE
YEAR ENDED TO YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1999 1998 1999 1998 1999 1998
----------- ----------- -------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss).................... $ (45,696) $ 6,172 $ (1,419,744) $ 1,521,945 $ (411,933) $ 75,383
Net realized gain (loss) on
investments and foreign
currency transactions..... 3,223,783 (393,935) 171,292,228 223,412,949 82,466,554 22,180,829
Net change in unrealized
appreciation
(depreciation) on
investments and foreign
currency.................. 9,918,613 3,245,795 207,427,522 (98,914,608) 85,867,903 4,080,141
----------- ----------- -------------- ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS.................. 13,096,700 2,858,032 377,300,006 126,020,286 167,922,524 26,336,353
----------- ----------- -------------- ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment
income.................... (1,268) (4,904) (1,520,916) (2,325,371) (74,969) (251,538)
From net realized gains..... (1,404,394) -- (224,015,952) (34,228,739) (6,458,262) --
----------- ----------- -------------- ------------ ------------ ------------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS................ (1,405,662) (4,904) (225,536,868) (36,554,110) (6,533,231) (251,538)
----------- ----------- -------------- ------------ ------------ ------------
CAPITAL STOCK SOLD AND
REPURCHASED: (NOTE 5)
Proceeds from sale of
shares.................... 56,576,189 16,576,296 18,122,493 21,539,491 37,442,118 16,306,399
Proceeds from shares issued
as a result of reinvested
dividends................. 1,405,662 4,904 225,536,868 36,554,110 6,533,231 251,538
Less cost of repurchase..... (1,732,595) (313,598) (113,048,272) (92,360,796) (22,066,381) (15,238,234)
----------- ----------- -------------- ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM SHARES
TRANSACTIONS................ 56,249,256 16,267,602 130,611,089 (34,267,195) 21,908,968 1,319,703
----------- ----------- -------------- ------------ ------------ ------------
TOTAL INCREASE (DECREASE) IN
NET ASSETS.................. 67,940,294 19,120,730 282,374,227 55,198,981 183,298,261 27,404,518
NET ASSETS:
Beginning of year........... 19,120,730 -- 762,353,767 707,154,786 149,859,678 122,455,160
----------- ----------- -------------- ------------ ------------ ------------
END OF YEAR (NOTE 4).......... $87,061,024 $19,120,730 $1,044,727,994 $762,353,767 $333,157,939 $149,859,678
----------- ----------- -------------- ------------ ------------ ------------
</TABLE>
93
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements
- --------------------------------------------------------------------------------
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 short and
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.
94
<PAGE>
- --------------------------------------------------------------------------------
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.
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, with the exception of Money Market Series. Pursuant to Rule 2a-7 under
the Investment Company Act of 1940, Money Market Series' investments are
valued at amortized cost which assumes a constant amortization to maturity of
discount or premium.
SECURITIES PURCHASED ON A WHEN-ISSUED BASIS: Delivery and payment for
securities that have been purchased by all portfolios except for Money Market
Series and Growth Stock Series on a forward commitment or when-issued basis
can take place a month or more after the transaction date. During this
period, such securities are subject to market fluctuation and the portfolio
maintains, in a segregated account with its custodian, assets with a market
value equal to the amount of its purchase commitments. As of December 31,
1999, U.S. Government Securities Series and Asset Allocation Series entered
into outstanding when-issued or forward commitments of $2,450,000 and
$2,450,000 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 year ended December 31, 1999,
the cost of purchases and proceeds from sales of securities for Money Market
Series were $630,111,607 and $583,217,546, 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 ........... $ 136,375,712 $ 144,035,510
Diversified Income Series ................... 92,402,374 97,577,467
Global Bond Series .......................... 46,064,464 43,145,243
High Yield Series ........................... 50,399,471 48,704,803
Global Asset Allocation Series .............. 37,552,411 39,012,421
Asset Allocation Series ..................... 1,076,059,567 1,062,252,761
Value Series ................................ 185,984,654 187,852,257
Growth & Income Series ...................... 285,343,008 310,328,312
S&P 500 Index Series ........................ 120,377,269 9,788,625
Blue Chip Stock Series ...................... 143,110,611 89,661,498
International Stock Series .................. 48,166,178 32,945,380
Mid Cap Stock Series ........................ 21,548,231 12,629,953
Small Cap Value Series ...................... 37,672,790 17,688,625
Global Growth Series ........................ 152,045,431 217,553,669
Large Cap Growth Series ..................... 76,276,546 23,069,657
Growth Stock Series ......................... 1,289,693,954 1,390,934,035
Aggressive Growth Series .................... 472,301,706 476,193,656
</TABLE>
95
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
LENDING OF PORTFOLIO SECURITIES: At December 31, 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 than amounts required to be returned to the borrowers.
The value of securities on loan, collateral, and fee income from securities
lending as of, and for the year ended December 31, 1999 was as follows:
<TABLE>
<CAPTION>
Securities
On Loan Collateral Fee Income
<S> <C> <C> <C>
-------------------------------------------------------------------------------------------
Value Series ................................ $ 18,198,213 $ 18,295,700 $ 13,753
Growth & Income Series ...................... 52,118,173 52,941,130 103,403
S&P 500 Index Series ........................ 76,750,854 78,570,012 37,392
Blue Chip Stock Series ...................... 51,536,677 53,312,651 29,942
Global Growth Series ........................ 76,679,245 78,002,223 71,132
Aggressive Growth Series .................... 51,507,506 52,985,551 183,137
</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), resulting in a net
reclassification adjustment to increase (decrease) paid-in-capital by the
following:
<TABLE>
<CAPTION>
Accumulated Undistributed Net Paid-
Net Realized Investment In-
Gain/(Loss) Income Capital
<S> <C> <C> <C>
------------------------------------------------------------------------------------------------
Money Market Series ......................... $ 9,421 $ -- $ (9,421)
Global Bond Series .......................... (372,943) 372,943 --
Global Asset Allocation Series .............. 489,824 (489,824) --
Value Series ................................ (1,650,000) -- 1,650,000
S&P 500 Index Series ........................ (300,000) -- 300,000
Blue Chip Stock Series ...................... 837 (837) --
International Stock Series .................. (2,825,567) 2,825,567 --
</TABLE>
<TABLE>
------------------------------------------------------------------------------------------------
Global Growth Series $(3,579,256) $3,579,256 $ --
<CAPTION>
Accumulated Undistributed Net Paid-
Net Realized Investment In-
Gain/(Loss) Income Capital
<S> <C> <C> <C>
Large Cap Growth Series ..................... (45,650) 45,696 (46)
Growth Stock Series ......................... (1,419,744) 1,419,744 --
Aggressive Growth Series .................... (411,933) 411,933 --
</TABLE>
For federal income tax purposes the portfolios had the following capital loss
carryovers at December 31, 1999, which, if not offset by subsequent capital
gains, will expire in 2000 through 2008. 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 ......................... $ 56,052
U.S. Government Securities Series ........... 19,603,587
Diversified Income Series ................... 11,253,332
Global Bond Series .......................... 610,193
High Yield Series ........................... 10,900,636
</TABLE>
ILLIQUID SECURITIES: At December 31, 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 December 31, 1999, were
as follows:
<TABLE>
<CAPTION>
Market Value of Percentage of
Illiquid Securities Total Net Assets
<S> <C> <C>
----------------------------------------------------------------------------------------
Diversified Income Series ................... $ 2,145,501 2.12%
High Yield Series ........................... 1,294,131 1.90%
Global Asset Allocation Series .............. 611,291 0.93%
Asset Allocation Series ..................... 4,585,132 0.67%
Growth & Income Series ...................... 30,859,125 9.73%
Blue Chip Stock Series ...................... 7,468,018 2.63%
Global Growth Series ........................ 7,836,347 1.65%
</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
96
<PAGE>
- --------------------------------------------------------------------------------
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.
BANK BORROWINGS: Several Fortis Funds, including Series High Yield, Series
Asset Allocation, Series Value, Series Growth & Income, Series Global Growth,
Series Growth Stock and Series Aggressive Growth, have a revolving credit
agreement with Norwest Bank Minnesota N.A., whereby the funds are permitted
to have a bank borrowing for temporary and emergency purposes to meet large
redemption requests by shareholders; and cover securities purchased when
matched or when earlier trades have failed. The agreement, which enables the
funds to participate with other Fortis Funds, permits borrowings up to $25
million, collectively. Interest is expensed to each participating fund based
on its borrowings and will be calculated at the borrowers option of: 1) the
Prime Index; 2) the Federal Funds rate plus a "Margin" of 37.5 basis points,
or; 3) the Libor rate plus a "Margin" of 37.5 basis points. The Prime Index
is defined as the higher of: A) the rate that Norwest Bank Minnesota N.A.
announces from time to time as its prime rate or B) the Federal Funds rate
plus 50 basis points. Each fund pays a commitment fee equal to its pro rata
share of the amount of the credit facility at a rate of 0.08% per annum. The
funds had no borrowings during the year ended December 31, 1999.
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 contract is traded and is subject to change.
Contracts open as of December 31, 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 Stock Series, International Stock Series, Mid Cap Stock Series,
Small Cap Value Series and Large Cap Growth Series have retained sub-advisers
under investment sub-advisory agreements 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
97
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
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 $100 .35%
International Ltd. million
For assets over $100 .225%
million
Global Asset Allocation Series Morgan Stanley Asset For the first $100 .50%
Management Limited million
For assets over $100 .40%
million
S&P 500 Index Series The Dreyfus Corporation For all levels of assets .17%
Blue Chip Stock Series T. Rowe Price For the first $100 .50%
Associate, Inc. million
For assets over $100 .45%
million
International Stock Series Lazard-Freres For the first $100 .45%
Asset Management million
For assets over $100 .375%
million
Mid Cap Stock Series The Dreyfus Corporation For the first $100 .50%
million
For the next $150 million .45%
For assets over $250
million .40%
Small Cap Value Series Berger Associates For the first $50 million .50%
For assets over $50
million .45%
Large Cap Growth Series Alliance Capital For the first $100 .50%
Management L.P. million
For the next $100 million .45%
For assets over $200 .40%
million
</TABLE>
For the year ended December 31, 1999, legal fees and expenses were paid as
follows to a law firm of which the secretary of the fund is a partner.
<TABLE>
<CAPTION>
Series Amount
<S> <C>
-------------------------------------------------------
Money Market Series ......................... $4,300
U.S. Government Securities Series ........... 10,000
Diversified Income Series ................... 6,850
Global Bond Series .......................... 1,400
High Yield Series ........................... 4,300
Global Asset Allocation Series .............. 4,000
Asset Allocation Series ..................... 34,000
Value Series ................................ 5,700
Growth & Income Series ...................... 18,200
S&P 500 Index Series ........................ 18,150
Blue Chip Stock Series ...................... 13,000
International Stock Series .................. 6,500
Mid Cap Stock Series ........................ 1,236
Small Cap Value Series ...................... 1,300
Global Growth Series ........................ 18,300
Large Cap Growth Series ..................... 1,750
Growth Stock Series ......................... 44,300
Aggressive Growth Series .................... 9,300
</TABLE>
3. FORWARD FOREIGN CURRENCY CONTRACTS: At December 31, 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) 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 Unrealized
Currency To Value As Of Currency To Value As Of Appreciation/
Settle Date Be Delivered Dec. 31, 1999 Be Received Dec. 31, 1999 (Depreciation)
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------------
Jan. 27, 2000 191,085 $ 191,085 300,000 $ 196,263 $ 5,178
U.S. Dollar Australian Dollar
Jan. 27, 2000 662,340 662,340 415,000 668,821 6,481
U.S. Dollar British Pound Sterling
Jan. 27, 2000 2,050,000 276,687 279,881 279,881 3,194
Danish Krone U.S. Dollar
Jan. 27, 2000 3,400,000 3,413,913 3,455,369 3,455,369 41,456
European Monetary Unit U.S. Dollar
Jan. 27, 2000 3,691,644 3,691,644 373,705,110 3,662,648 (28,996)
U.S. Dollar Japanese Yen
</TABLE>
98
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
------------------------------------------------------------------------------------------------------------------
<CAPTION>
GLOBAL BOND SERIES
------------------------------------------------------------------------------------------------------------------
U.S. Dollar U.S. Dollar Unrealized
Currency To Value As Of Currency To Value As Of Appreciation/
Settle Date Be Delivered Dec. 31, 1999 Be Received Dec. 31, 1999 (Depreciation)
<S> <C> <C> <C> <C> <C>
Jan. 27, 2000 252,845 252,845 400,000 250,845 (2,000)
U.S. Dollar Swiss Franc
---------- ---------- -------
$8,488,514 $8,513,827 $25,313
---------- ---------- -------
</TABLE>
<TABLE>
<CAPTION>
GLOBAL ASSET ALLOCATION SERIES
----------------------------------------------------------------------------------------------------------------
U.S. Dollar U.S. Dollar Unrealized
Currency To Value As Of Currency To Value As Of Appreciation/
Settle Date Be Delivered Dec. 31, 1999 Be Received Dec. 31, 1999 (Depreciation)
<S> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------
Mar. 14, 2000 846,939 $ 846,939 830,000 $ 836,228 $(10,711)
U.S. Dollar European Monetary Unit
Apr. 12, 2000 2,400,000 2,423,232 2,612,640 2,612,640 189,408
European Monetary Unit U.S. Dollar
---------- ---------- --------
$3,270,171 $3,448,868 $178,697
---------- ---------- --------
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL STOCK SERIES
----------------------------------------------------------------------------------------------------------------
U.S. Dollar U.S. Dollar Unrealized
Currency To Value As Of Currency To Value As Of Appreciation/
Settle Date Be Delivered Dec. 31, 1999 Be Received Dec. 31, 1999 (Depreciation)
<S> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------
January 3, 2000 221,902 $221,902 218,515 $219,039 $ (2,863)
U.S. Dollar Euro
-------- -------- --------
$221,902 $219,039 $ (2,863)
-------- -------- --------
</TABLE>
4. NET ASSETS INCLUDE UNDISTRIBUTED (EXCESS OF DISTRIBUTIONS OVER) NET
INVESTMENT INCOME OF:
<TABLE>
<CAPTION>
1999 1998
<S> <C> <C>
---------------------------------------------------------------------------
Money Market Series ......................... $ 4,466,661 $ 3,352,487
U.S. Government Securities Series ........... 8,329,737 7,968,815
Diversified Income Series ................... 7,438,940 7,229,293
Global Bond Series .......................... 357,578 (146,800)
High Yield Series ........................... 6,530,561 6,362,602
Global Asset Allocation Series .............. (92,419) (3,440)
Asset Allocation Series ..................... 15,806,752 13,723,599
Value Series ................................ 777,519 9,431
Growth & Income Series ...................... 4,402,984 7,013,204
</TABLE>
<TABLE>
---------------------------------------------------------------------------
S&P 500 Index Series ........................ $ 3,112,410 $ 20,905
<CAPTION>
1999 1998
<S> <C> <C>
Blue Chip Stock Series ...................... 10,313 9,441
International Stock Series .................. 4,293,891 96,265
Mid Cap Stock Series ........................ 1,150 --
Small Cap Value Series ...................... 7,618 1,290
Global Growth Series ........................ 3,558,566 416,661
Large Cap Growth Series ..................... -- 1,268
Growth Stock Series ......................... -- 1,520,916
Aggressive Growth Series .................... -- 74,969
</TABLE>
5. SHARES OF CAPITAL STOCK SOLD AND REPURCHASED:
<TABLE>
<CAPTION>
SHARES ISSUED AS A
RESULT
OF REINVESTED NET INCREASE
SHARES SOLD DIVIDENDS SHARES REPURCHASED (DECREASE)
---------------------- ---------------------- ------------------------ ------------------------
1999 1998 1999 1998 1999 1998 1999 1998
<S> <C> <C> <C> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------------------------
Money Market Series ...... 11,017,535 6,203,394 304,332 304,288 (7,211,114) (4,707,744) 4,110,753 1,799,938
U.S. Government Securities
Series ................. 1,361,980 3,084,204 789,914 829,215 (2,429,575) (3,244,692) (277,681) 668,727
Diversified Income
Series ................. 708,060 1,179,783 668,026 625,983 (1,770,065) (917,054) (393,979) 888,712
Global Bond Series ....... 706,551 582,919 99,609 93,157 (510,559) (486,376) 295,601 189,700
High Yield Series ........ 930,821 1,889,093 713,412 601,517 (1,313,629) (824,528) 330,604 1,666,082
Global Asset Allocation
Series ................. 494,776 860,431 368,552 339,980 (671,008) (326,285) 192,320 874,126
</TABLE>
99
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
<TABLE>
------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
SHARES ISSUED AS A
RESULT
OF REINVESTED NET INCREASE
SHARES SOLD DIVIDENDS SHARES REPURCHASED (DECREASE)
---------------------- ---------------------- ------------------------ ------------------------
1999 1998 1999 1998 1999 1998 1999 1998
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Asset Allocation
Series ................. 1,709,242 2,347,101 2,978,672 57,611 (2,995,739) (1,622,808) 1,692,175 781,904
Value Series ............. 659,996 2,434,382 4,499 140,390 (715,516) (583,157) (51,021) 1,991,615
Growth & Income Series ... 620,808 2,447,766 997,623 4,707 (1,904,530) (771,120) (286,099) 1,681,353
S&P 500 Index Series ..... 7,350,726 7,384,185 2,925 202,574 (2,032,947) (1,501,912) 5,320,704 6,084,847
Blue Chip Stock Series ... 3,323,297 4,546,998 194,408 166,373 (406,623) (202,065) 3,111,082 4,511,306
International Stock
Series ................. 2,014,188 1,774,205 9,651 491,607 (1,112,312) (1,073,722) 911,527 1,192,090
Mid Cap Stock Series ..... 1,118,482 1,377,131 2,572 2,414 (147,796) (31,004) 973,258 1,348,541
Small Cap Value Series ... 2,171,147 1,822,903 173,756 24,650 (284,799) (69,121) 2,060,104 1,778,432
Global Growth Series ..... 770,884 640,974 339,626 19,957 (3,028,167) (2,496,326) (1,917,657) (1,835,395)
Large Cap Growth
Series ................. 4,222,642 1,618,613 98,655 413 (125,347) (31,517) 4,195,950 1,587,509
Growth Stock Series ...... 469,349 576,663 6,986,242 1,100,557 (2,864,866) (2,423,501) 4,590,725 (746,281)
Aggressive Growth
Series ................. 1,665,100 1,147,537 307,070 20,203 (1,085,748) (1,059,209) 886,422 108,531
</TABLE>
- --------------------------------------------------------------------------------
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
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------
Net asset value, beginning of year...... $ 11.06 $ 11.03 $ 10.94 $ 10.83 $ 10.63
-------- ------- ------- ------- -------
Operations:
Investment income - net............... .54 .57 .58 .57 .60
Distributions to shareholders:
From investment income - net.......... (.40) (.54) (.49) (.46) (.40)
-------- ------- ------- ------- -------
Net asset value, end of year............ $ 11.20 $ 11.06 $ 11.03 $ 10.94 $ 10.83
-------- ------- ------- ------- -------
Total return @.......................... 4.96% 5.32% 5.34% 5.17% 5.71%
Net assets end of year (000s omitted)... $124,105 $77,097 $57,009 $61,906 $41,807
Ratio of expenses to average daily net
assets................................ .35% .35% .38% .38% .40%
Ratio of net investment income to
average daily net assets.............. 4.88% 5.18% 5.19% 5.14% 5.44%
</TABLE>
@ These are the portfolio's total returns during the period, including
reinvestment of all dividend and capital gains distributions.
100
<PAGE>
- --------------------------------------------------------------------------------
6. FINANCIAL HIGHLIGHTS (continued):
<TABLE>
<CAPTION>
Year Ended December 31,
----------------------------------------------------
U.S. GOVERNMENT SERIES 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
Net asset value, beginning of year...... $ 10.93 $ 10.68 $ 10.57 $ 11.16 $ 9.40
-------- -------- -------- -------- --------
Operations:
Investment income - net............... .63 .60 .80 .67 .70
Net realized and unrealized gain
(loss) on investments............... (.84) .34 .12 (.51) 1.06
-------- -------- -------- -------- --------
Total from operations................... (.21) .94 .92 .16 1.76
-------- -------- -------- -------- --------
Distributions to shareholders:
From investment income - net.......... (.59) (.69) (.81) (.75) --
-------- -------- -------- -------- --------
Net asset value, end of year............ $ 10.13 $ 10.93 $ 10.68 $ 10.57 $ 11.16
-------- -------- -------- -------- --------
Total return @.......................... (1.94%) 8.87% 9.08% 2.21% 18.78%
Net assets end of year (000s omitted)... $138,658 $152,672 $142,070 $161,678 $182,687
Ratio of expenses to average daily net
assets................................ .52% .51% .54% .53% .53%
Ratio of net investment income to
average daily net assets.............. 5.64% 5.53% 6.03% 6.17% 6.78%
Portfolio turnover rate................. 97% 114% 148% 176% 115%
</TABLE>
@ 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,
----------------------------------------------------
DIVERSIFIED INCOME SERIES 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
Net asset value, beginning of year...... $ 11.91 $ 11.98 $ 11.70 $ 12.20 $ 10.40
-------- -------- -------- -------- --------
Operations:
Investment income - net............... .85 .73 .91 .82 .88
Net realized and unrealized gain
(loss) on investments............... (1.05) .01 .26 (.40) .92
-------- -------- -------- -------- --------
Total from operations................... (.20) .74 1.17 .42 1.80
-------- -------- -------- -------- --------
Distributions to shareholders:
From investment income - net.......... (.80) (.81) (.89) (.91) --
Excess distributions of net realized
gains............................... -- -- -- (.01) --
-------- -------- -------- -------- --------
Total distributions to shareholders..... (.80) (.81) (.89) (.92) --
-------- -------- -------- -------- --------
Net asset value, end of year............ $ 10.91 $ 11.91 $ 11.98 $ 11.70 $ 12.20
-------- -------- -------- -------- --------
Total return @.......................... (1.68%) 6.31% 10.44% 4.15% 17.26%
Net assets end of year (000s omitted)... $101,153 $115,182 $105,200 $105,831 $109,120
Ratio of expenses to average daily net
assets................................ .54% .52% .55% .55% .55%
Ratio of net investment income to
average daily net assets.............. 6.78% 6.56% 7.11% 6.86% 7.78%
Portfolio turnover rate................. 87% 96% 166% 171% 139%
</TABLE>
@ These are the portfolio's total returns during the period, including
reinvestment of all dividend and capital gains distributions.
101
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
6. FINANCIAL HIGHLIGHTS (continued):
<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 year...... $ 11.56 $ 10.65 $ 11.11 $ 11.30 $ 10.00
------- ------- ------- ------- -------
Operations:
Investment income - net............... .57 .30 .46 .57 .54
Net realized and unrealized gain
(loss) on investments and foreign
currency transactions............... (1.44) 1.13 (.45) (.13) 1.52
------- ------- ------- ------- -------
Total from operations................... (.87) 1.43 .01 .44 2.06
------- ------- ------- ------- -------
Distributions to shareholders:
From investment income - net.......... (.35) (.19) (.37) (.43) (.54)
From net realized gains............... (.08) (.33) (.10) (.20) (.22)
------- ------- ------- ------- -------
Total distributions to shareholders..... (.43) (.52) (.47) (.63) (.76)
------- ------- ------- ------- -------
Net asset value, end of year............ $ 10.26 $ 11.56 $ 10.65 $ 11.11 $ 11.30
------- ------- ------- ------- -------
Total return @.......................... (7.53%) 13.49% .14% 3.32% 19.14%
Net assets end of year (000s omitted)... $24,926 $24,659 $20,692 $20,228 $13,187
Ratio of expenses to average daily net
assets................................ .90% .88% 1.10% 1.02% 1.28%*
Ratio of net investment income to
average daily net assets.............. 3.83% 4.19% 4.41% 5.07% 5.01%*
Portfolio turnover rate................. 194% 190% 168% 129% 184%
</TABLE>
* Annualized.
+ For the period January 3, 1995 (commencement of operations) to
December 31, 1995. The portfolio's inception was December 14, 1994,
when it was initially capitalized. However, the portfolio's shares did
not become effectively registered under the Securities Act of 1933
until January 3, 1995. Information is not presented for the period
from December 14, 1994, through January 3, 1995, as the portfolio's
shares were not registered during that period.
@ These are the portfolio's total returns during the period, including
reinvestment of all dividend and capital gains distributions.
<TABLE>
<CAPTION>
Year Ended December 31,
-----------------------------------------------
HIGH YIELD SERIES 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------
Net asset value, beginning of year...... $ 9.91 $ 10.77 $ 9.83 $ 9.74 $ 9.47
------- ------- ------- ------- -------
Operations:
Investment income - net............... .89 .75 .96 1.04 1.15
Net realized and unrealized gain
(loss) on investments............... (.80) (.71) -- .13 .30
------- ------- ------- ------- -------
Total from operations................... .09 .04 .96 1.17 1.45
------- ------- ------- ------- -------
Distributions to shareholders:
From investment income - net.......... (.91) (.83) (.02) (1.03) (1.14)
From net realized gains............... -- (.07) -- -- --
Excess distributions of net realized
gains............................... -- -- -- (.05) (.04)
------- ------- ------- ------- -------
Total distributions to shareholders..... (.91) (.90) (.02) (1.08) (1.18)
------- ------- ------- ------- -------
Net asset value, end of year............ $ 9.09 $ 9.91 $ 10.77 $ 9.83 $ 9.74
------- ------- ------- ------- -------
Total return @.......................... 1.17% .62% 9.76% 10.52% 12.73%
Net assets end of year (000s omitted)... $68,166 $70,983 $59,228 $42,578 $28,129
Ratio of expenses to average daily net
assets................................ .57% .56% .62% .63% .63%
Ratio of net investment income to
average daily net assets.............. 9.19% 9.39% 10.31% 10.22% 11.30%
Portfolio turnover rate................. 75% 120% 353% 235% 130%
</TABLE>
@ These are the portfolio's total returns during the period, including
reinvestment of all dividend and capital gains distributions.
102
<PAGE>
- --------------------------------------------------------------------------------
6. FINANCIAL HIGHLIGHTS (continued):
<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 year...... $ 14.32 $ 13.29 $ 12.34 $ 11.42 $ 10.00
------- ------- ------- ------- -------
Operations:
Investment income - net............... .22 .28 .28 .36 .35
Net realized and unrealized gain
(loss) on investments and foreign
currency transactions............... (.34) 1.81 1.39 1.19 1.55
------- ------- ------- ------- -------
Total from operations................... (.12) 2.09 1.67 1.55 1.90
------- ------- ------- ------- -------
Distributions to shareholders:
From investment income - net.......... (.24) (.31) (.26) (.38) (.34)
From net realized gains............... (.79) (.75) (.46) (.25) (.14)
------- ------- ------- ------- -------
Total distributions to shareholders..... (1.03) (1.06) (.72) (.63) (.48)
------- ------- ------- ------- -------
Net asset value, end of year............ $ 13.17 $ 14.32 $ 13.29 $ 12.34 $ 11.42
------- ------- ------- ------- -------
Total return @.......................... (.87%) 15.96% 13.51% 12.72% 17.47%
Net assets end of year (000s omitted)... $66,067 $69,086 $52,482 $37,307 $20,080
Ratio of expenses to average daily net
assets................................ 1.02% 1.01% 1.16% 1.20% 1.28%*
Ratio of net investment income to
average daily net assets.............. 2.26% 2.13% 2.42% 3.01% 3.26%*
Portfolio turnover rate................. 59% 69% 51% 46% 44%
</TABLE>
* Annualized.
+ For the Period January 3, 1995 (commencement of operations) to
December 31, 1995. The portfolio's inception was December 14, 1994,
when it was initially capitalized. However, the portfolio's shares did
not become effectively registered under the Securities Act of 1933
until January 3, 1995. Information is not presented for the period
from December 14, 1994, through January 3, 1995, as the portfolio's
shares were not registered during that period.
@ These are the portfolio's total returns during the period, including
reinvestment of all dividend and capital gains distributions.
<TABLE>
<CAPTION>
Year Ended December 31,
----------------------------------------------------
ASSET ALLOCATION SERIES 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
Net asset value, beginning of year...... $ 21.09 $ 17.62 $ 16.99 $ 15.90 $ 13.56
-------- -------- -------- -------- --------
Operations:
Investment income - net............... .54 .49 .59 .61 .65
Net realized and unrealized gain on
investments......................... 3.27 3.02 2.82 1.38 2.35
-------- -------- -------- -------- --------
Total from operations................... 3.81 3.51 3.41 1.99 3.00
-------- -------- -------- -------- --------
Distributions to shareholders:
From investment income - net.......... (.49) (.01) (.59) (.61) (.64)
From net realized gains............... (1.63) (.03) (2.19) (.28) (.02)
Excess distributions of net realized
gains............................... -- -- -- (.01) --
-------- -------- -------- -------- --------
Total distributions to shareholders..... (2.12) (.04) (2.78) (.90) (.66)
-------- -------- -------- -------- --------
Net asset value, end of year............ $ 22.78 $ 21.09 $ 17.62 $ 16.99 $ 15.90
-------- -------- -------- -------- --------
Total return @.......................... 19.56% 19.97% 20.24% 12.50% 21.97%
Net assets end of year (000s omitted)... $679,957 $593,878 $482,280 $397,712 $341,511
Ratio of expenses to average daily net
assets................................ .52% .51% .53% .54% .55%
Ratio of net investment income to
average daily net assets.............. 2.58% 2.64% 3.16% 3.66% 4.25%
Portfolio turnover rate................. 178% 114% 113% 115% 98%
</TABLE>
@ These are the portfolio's total returns during the period, including
reinvestment of all dividend and capital gains distributions.
103
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
6. FINANCIAL HIGHLIGHTS (continued):
<TABLE>
<CAPTION>
Year Ended December 31,
-------------------------------------
VALUE SERIES 1999 1998 1997 1996+
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------
Net asset value, beginning of year...... $ 14.38 $ 13.42 $ 11.38 $ 10.27
------- ------- ------- -------
Operations:
Investment income - net............... .13 .16 .12 .14
Net realized and unrealized gain on
investments......................... 1.15 1.13 2.75 1.10
------- ------- ------- -------
Total from operations................... 1.28 1.29 2.87 1.24
------- ------- ------- -------
Distributions to shareholders:
From investment income - net.......... -- (.16) (.13) (.13)
From net realized gains............... (.01) (.17) (.70) --
------- ------- ------- -------
Total distributions to shareholders..... (.01) (.33) (.83) (.13)
------- ------- ------- -------
Net asset value, end of year............ $ 15.65 $ 14.38 $ 13.42 $ 11.38
------- ------- ------- -------
Total return @.......................... 8.96% 9.64% 25.24% 11.49%
Net assets end of year (000s omitted)... $94,583 $87,604 $55,058 $13,951
Ratio of expenses to average daily net
assets................................ .78% .76% .83% .87%*
Ratio of net investment income to
average daily net assets.............. .85% 1.26% 1.41% 1.72%*
Portfolio turnover rate................. 211% 332% 121% 36%
</TABLE>
* Annualized
+ 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 returns during the period, including
reinvestment of all dividend and capital gains distributions.
<TABLE>
<CAPTION>
Year Ended December 31,
---------------------------------------------------
GROWTH & INCOME SERIES 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
Net asset value, beginning of year...... $ 21.23 $ 18.76 $ 15.16 $ 12.83 $ 10.07
-------- -------- -------- -------- -------
Operations:
Investment income - net............... .33 .48 .40 .34 .33
Net realized and unrealized gain on
investments......................... 1.81 2.00 3.80 2.54 2.76
-------- -------- -------- -------- -------
Total from operations................... 2.14 2.48 4.20 2.88 3.09
-------- -------- -------- -------- -------
Distributions to shareholders:
From investment income - net.......... (.50) -- (.39) (.34) (.33)
From net realized gains............... (.93) (.01) (.21) (.21) --
-------- -------- -------- -------- -------
Total distributions to shareholders..... (1.43) (.01) (.60) (.55) (.33)
-------- -------- -------- -------- -------
Net asset value, end of year............ $ 21.94 $ 21.23 $ 18.76 $ 15.16 $ 12.83
-------- -------- -------- -------- -------
Total return @.......................... 10.72% 13.21% 27.69% 21.51% 29.70%
Net assets end of year (000s omitted)... $317,186 $312,939 $244,970 $134,932 $59,533
Ratio of expenses to average daily net
assets................................ .69% .67% .70% .76% .80%
Ratio of net investment income to
average daily net assets.............. 1.41% 2.45% 2.63% 2.38% 2.86%
Portfolio turnover rate................. 95% 30% 11% 20% 17%
</TABLE>
@ These are the portfolio's total returns during the period, including
reinvestment of all dividend and capital gains distributions.
104
<PAGE>
- --------------------------------------------------------------------------------
6. FINANCIAL HIGHLIGHTS (continued):
<TABLE>
<CAPTION>
Year Ended December 31,
----------------------------------------
S&P 500 INDEX SERIES 1999 1998 1997 1996+
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------
Net asset value, beginning of year...... $ 18.83 $ 14.93 $ 11.47 $ 10.09
-------- -------- -------- -------
Operations:
Investment income - net............... .17 .16 .12 .10
Net realized and unrealized gain on
investments......................... 3.66 4.03 3.58 1.37
-------- -------- -------- -------
Total from operations................... 3.83 4.19 3.70 1.47
-------- -------- -------- -------
Distributions to shareholders:
From investment income - net.......... -- (.16) (.12) (.09)
From net realized gains............... -- (.13) (.12) --
-------- -------- -------- -------
Total distributions to shareholders..... -- (.29) (.24) (.09)
-------- -------- -------- -------
Net asset value, end of year............ $ 22.66 $ 18.83 $ 14.93 $ 11.47
-------- -------- -------- -------
Total return @.......................... 20.34% 28.11% 32.32% 14.29%
Net assets end of year (000s omitted)... $424,773 $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.............. .92% 1.17% 1.41% 1.47%*
Portfolio turnover rate................. 3% 3% 5% 6%
</TABLE>
* Annualized.
+ 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 portfolio's total returns during the period, including
reinvestment of all dividend and capital gains distributions.
<TABLE>
<CAPTION>
Year Ended December 31,
---------------------------------------
BLUE CHIP STOCK SERIES 1999 1998 1997 1996+
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------
Net asset value, beginning of year...... $ 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........................ 3.65 4.09 3.08 1.60
-------- -------- ------- -------
Total from operations................... 3.67 4.14 3.15 1.67
-------- -------- ------- -------
Distributions to shareholders:
From investment income - net.......... (.02) (.06) (.06) (.07)
From net realized gains............... (.30) (.26) -- --
-------- -------- ------- -------
Total distributions to shareholders..... (.32) (.32) (.06) (.07)
-------- -------- ------- -------
Net asset value, end of year............ $ 21.93 $ 18.58 $ 14.76 $ 11.67
-------- -------- ------- -------
Total return @.......................... 19.88% 28.07% 27.00% 16.24%
Net assets end of year (000s omitted)... $284,229 $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.............. .10% .41% .75% .82%*
Portfolio turnover rate................. 40% 34% 24% 17%
</TABLE>
* Annualized.
+ 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 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 (continued)
- --------------------------------------------------------------------------------
6. FINANCIAL HIGHLIGHTS (continued):
<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 year...... $ 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........................ 3.30 2.03 1.35 1.48 1.38
-------- -------- ------- ------- -------
Total from operations................... 3.48 2.18 1.48 1.68 1.52
-------- -------- ------- ------- -------
Distributions to shareholders:
From investment income - net.......... (.01) (.26) (.15) (.21) (.09)
From net realized gains............... (.01) (.80) (.41) (.30) (.16)
-------- -------- ------- ------- -------
Total distributions to shareholders..... (.02) (1.06) (.56) (.51) (.25)
-------- -------- ------- ------- -------
Net asset value, end of year............ $ 17.94 $ 14.48 $ 13.36 $ 12.44 $ 11.27
-------- -------- ------- ------- -------
Total return @.......................... 23.99% 16.47% 11.99% 14.02% 14.35%
Net assets end of year (000s omitted)... $143,969 $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.............. 1.26% 1.20% 1.10% 1.71% 1.41%*
Portfolio turnover rate................. 29% 44% 30% 27% 39%
</TABLE>
* Annualized
+ For the period January 3, 1995 (commencement of operations) to
December 31, 1995. The portfolio's inception was December 14, 1994,
when it was initially capitalized. However, the portfolio's shares did
not become effectively registered under the Securities Act of 1933
until January 3, 1995. Information is not presented for the period
from December 14, 1994, through January 3, 1995, as the portfolio's
shares were not registered during that period.
@ These are the portfolio's total returns during the period, including
reinvestment of all dividend and capital gains distributions.
<TABLE>
<CAPTION>
Year Ended
December 31,
-----------------
MID CAP STOCK SERIES 1999 1998+
<S> <C> <C>
- ------------------------------------------------------------
Net asset value, beginning of year...... $ 9.64 $ 9.94
------- -------
Operations:
Investment income - net............... .01 .02
Net realized and unrealized gain
(loss) on investments............... 1.04 (.30)
------- -------
Total from operations................... 1.05 (.28)
------- -------
Distributions to shareholders:
From investment income - net.......... (.01) (.02)
------- -------
Net asset value, end of period.......... $ 10.68 $ 9.64
------- -------
Total return @.......................... 10.97% (2.89%)
Net assets end of period (000s
omitted).............................. $24,800 $12,995
Ratio of expenses to average daily net
assets................................ 1.18% 1.25%(a)*
Ratio of net investment income to
average daily net assets.............. .15% .19%(a)*
Portfolio turnover rate................. 73% 66%
</TABLE>
* Annualized.
+ 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.
(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 ended December 31, 1998, 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.
106
<PAGE>
- --------------------------------------------------------------------------------
6. FINANCIAL HIGHLIGHTS (continued):
<TABLE>
<CAPTION>
Year Ended
December 31,
-----------------
SMALL CAP VALUE SERIES 1999 1998+
<S> <C> <C>
- ------------------------------------------------------------
Net asset value, beginning of year...... $ 9.28 $ 9.96
------- -------
Operations:
Investment income - net............... .12 .07
Net realized and unrealized gain
(loss) on investments............... 1.27 (.62)
------- -------
Total from operations................... 1.39 (.55)
------- -------
Distributions to shareholders:
From investment income - net.......... (.11) (.07)
From net realized gains............... (.36) (.06)
------- -------
Total distributions to shareholders..... (.47) (.13)
------- -------
Net asset value, end of year............ $ 10.20 $ 9.28
------- -------
Total return @.......................... 15.34% (5.48%)
Net assets end of year (000s omitted)... $39,171 $16,503
Ratio of expenses to average daily net
assets................................ 1.04% 1.24%*
Ratio of net investment income to
average daily net assets.............. 1.57% 1.56%*
Portfolio turnover rate................. 68% 57%
</TABLE>
* Annualized.
+ 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.
<TABLE>
<CAPTION>
Year Ended December 31,
----------------------------------------------------
GLOBAL GROWTH SERIES 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
Net asset value, beginning of year...... $ 22.57 $ 20.29 $ 19.00 $ 15.97 $ 12.31
-------- -------- -------- -------- --------
Operations:
Investment income - net............... -- .03 .02 .03 .09
Net realized and unrealized gain on
investments and foreign currency
transactions........................ 12.78 2.27 1.27 3.03 3.66
-------- -------- -------- -------- --------
Total from operations................... 12.78 2.30 1.29 3.06 3.75
-------- -------- -------- -------- --------
Distributions to shareholders:
From investment income - net.......... (.03) (.02) -- (.03) (.09)
From net realized gains............... (.60) -- -- -- --
-------- -------- -------- -------- --------
Total distributions to shareholders..... (.63) (.02) -- (.03) (.09)
-------- -------- -------- -------- --------
Net asset value, end of year............ $ 34.72 $ 22.57 $ 20.29 $ 19.00 $ 15.97
-------- -------- -------- -------- --------
Total return @.......................... 57.68% 11.36% 6.82% 19.10% 30.49%
Net assets end of year (000s omitted)... $474,180 $351,476 $353,255 $319,831 $207,913
Ratio of expenses to average daily net
assets................................ .77% .75% .79% .79% .80%
Ratio of net investment income (loss) to
average daily net assets.............. (.01%) .12% .12% .15% .64%
Portfolio turnover rate................. 44% 32% 35% 14% 29%
</TABLE>
@ These are the Portfolio's total returns during the period, including
reinvestment of all dividend and capital gains distributions.
107
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
6. FINANCIAL HIGHLIGHTS (continued):
<TABLE>
<CAPTION>
Year Ended
December 31,
-----------------
LARGE CAP GROWTH SERIES 1999 1998+
<S> <C> <C>
- ------------------------------------------------------------
Net asset value, beginning of year...... $ 12.04 $ 10.16
------- -------
Operations:
Investment income (loss) - net........ (.01) --
Net realized and unrealized gain on
investments......................... 3.28 1.88
------- -------
Total from operations................... 3.27 1.88
------- -------
Distributions to shareholders:
From net realized gains............... (.26) --
------- -------
Net asset value, end of year............ $ 15.05 $ 12.04
------- -------
Total return @.......................... 27.22% 18.61%
Net assets end of year (000s omitted)... $87,061 $19,121
Ratio of expenses to average daily net
assets................................ .97% 1.25%*(a)
Ratio of net investment income (loss) to
average daily net assets.............. (.09%) .03%*(a)
Portfolio turnover rate................. 50% 36%
</TABLE>
* Annualized.
@ These are the portfolio's total returns 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 1.25% of the
average net assets. For the period ended December 31, 1998, 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.
<TABLE>
<CAPTION>
Year Ended December 31,
------------------------------------------------------
GROWTH STOCK SERIES 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------
Net asset value, beginning of year...... $ 41.09 $ 36.64 $ 32.59 $ 28.09 $ 22.11
---------- -------- -------- -------- --------
Operations:
Investment income (loss) - net........ (.05) .09 .12 .12 .13
Net realized and unrealized gain on
investments......................... 17.42 6.40 3.93 4.50 5.98
---------- -------- -------- -------- --------
Total from operations................... 17.37 6.49 4.05 4.62 6.11
---------- -------- -------- -------- --------
Distributions to shareholders:
From investment income - net.......... (.09) (.13) -- (.12) (.13)
From net realized gains............... (13.23) (1.91) -- -- --
---------- -------- -------- -------- --------
Total distributions to shareholders..... (13.32) (2.04) -- (.12) (.13)
---------- -------- -------- -------- --------
Net asset value, end of year............ $ 45.14 $ 41.09 $ 36.64 $ 32.59 $ 28.09
---------- -------- -------- -------- --------
Total return @.......................... 55.17% 19.01% 12.42% 16.41% 27.66%
Net assets end of year (000s omitted)... $1,044,728 $762,354 $707,155 $661,217 $530,945
Ratio of expenses to average daily net
assets................................ .66% .65% .66% .67% .67%
Ratio of net investment income (loss) to
average daily net assets.............. (.18%) .21% .33% .39% .51%
Portfolio turnover rate................. 175% 106% 19% 30% 20%
</TABLE>
@ These are the portfolio's total returns during the period, including
reinvestment of all dividend and capital gains distributions.
108
<PAGE>
- --------------------------------------------------------------------------------
6. FINANCIAL HIGHLIGHTS (continued):
<TABLE>
<CAPTION>
Year Ended December 31,
--------------------------------------------------
AGGRESSIVE GROWTH SERIES 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------
Net asset value, beginning of year...... $ 16.70 $ 13.81 $ 13.62 $ 12.68 $ 9.80
-------- -------- -------- ------- -------
Operations:
Investment income (loss) - net........ (.04) .01 .03 .03 .07
Net realized and unrealized gain on
investments......................... 17.86 2.91 .16 .94 2.88
-------- -------- -------- ------- -------
Total from operations................... 17.82 2.92 .19 .97 2.95
-------- -------- -------- ------- -------
Distributions to shareholders:
From investment income - net.......... (.01) (.03) -- (.03) (.07)
From net realized gains............... (.72) -- -- -- --
-------- -------- -------- ------- -------
Total distributions to shareholders..... (.73) (.03) -- (.03) (.07)
-------- -------- -------- ------- -------
Net asset value, end of period.......... $ 33.79 $ 16.70 $ 13.81 $ 13.62 $ 12.68
-------- -------- -------- ------- -------
Total return @.......................... 109.25% 21.17% 1.43% 7.64% 29.89%
Net assets end of period (000s
omitted).............................. $333,158 $149,860 $122,455 $96,931 $46,943
Ratio of expenses to average daily net
assets................................ .72% .72% .76% .78% .81%
Ratio of net investment income (loss) to
average daily net assets.............. (.22%) .06% .24% .22% .58%
Portfolio turnover rate................. 264% 135% 25% 22% 21%
</TABLE>
@ These are the portfolio's total returns during the period, including
reinvestment of all dividend and capital gains distributions.
- --------------------------------------------------------------------------------
NOTICE TO POLICY HOLDERS:
At a special meeting of shareholders of Fortis Series Fund, Inc., held on
August 12, 1999, the following individuals were elected as directors:
Richard W. Cutting, Allen R. Freedman, Dr. Robert M. Gavin, Jean L. King,
Dean C. Kopperud, Robb L. Prince, Leonard J. Santow, Noel Schenker Shadko and
Joseph M. Wikler.
Shareholders also approved the elimination or modification of certain
fundamental investment policies; approved a proposal permitting Fortis Advisers,
Inc. to select and contract subadvisers without obtaining shareholder approval;
approved an amended investment advisory and management agreement between Fortis
Series Fund, Inc. and Fortis Advisers, Inc.; and ratified KPMG LLP as
independent public accountants for Fortis Series Fund, Inc.
109
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders
Fortis Series Fund, Inc.:
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments in securities, of Money Market Series, U.S.
Government Securities Series, Diversified Income Series, Global Bond Series,
High Yield Series, 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 (series within Fortis Series Fund, Inc.) as of December
31, 1999 and the related statements of operations for the year then ended, and
the statements of changes in net assets and the financial highlights for each of
the periods presented. These financial statements and the financial highlights
are the responsibility of fund management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and the financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Investment securities held in custody are confirmed to us by the
custodian. As to securities purchased and sold but not received or delivered,
and securities on loan, we carry out other appropriate auditing procedures. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and the financial highlights referred
to above present fairly, in all material respects, the financial position of
Money Market Series, U.S. Government Securities Series, Diversified Income
Series, Global Bond Series, High Yield Series, 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 as of December 31, 1999 and
the results of their operations for the year then ended, and the changes in
their net assets and the financial highlights for the periods presented, in
conformity with generally accepted accounting principles.
KPMG LLP
Minneapolis, Minnesota
February 11, 2000
110
<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
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.
111
<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
Income Preferred HIGH YIELD SUBACCOUNT
Variable Annuity 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.
112
<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 issued by
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% preconsumer waste and 10%
post consumer waste. Please recycle.
The Fortis brandmark and Fortis-registered trademark- are
servicemarks of Fortis (B) and Fortis (NL).
59749 -C-Fortis, Inc. 2/00
