<PAGE>
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SOLID PARTNERS, FLEXIBLE SOLUTIONS-SM-
Bringing you a world of opportunity
FORTIS SERIES FUND, INC.
SEMIANNUAL REPORT
JUNE 30, 2000
FORTIS FINANCIAL GROUP
<PAGE>
FORTIS SERIES FUND, INC.
SEMI-ANNUAL REPORT
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HIGHLIGHTS
<TABLE>
<CAPTION>
U.S.
MONEY GOVERNMENT DIVERSIFIED MULTISECTOR HIGH
MARKET SECURITIES INCOME BOND YIELD
SERIES SERIES SERIES SERIES SERIES
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
FOR THE SIX-MONTH
PERIOD ENDED JUNE 30, 2000:
NET ASSET VALUE PER SHARE:
Beginning of period............. $11.20 $10.13 $10.91 $10.26 $9.09
End of period................... $11.53 $10.49 $11.16 $10.21 $9.01
ACCUMULATION UNIT PERFORMANCE:
Fortis Opportunity
Annuity/Masters
Variable Annuity.............. +2.24% +2.90% +1.60% -1.15% -1.61%
Harmony Investment Life......... +2.55% +3.21% +1.91% -0.85% -1.31%
Wall Street Series 220/500...... +2.34% +2.99% +1.70% -1.06% -1.51%
Wall Street Series Survivor..... +2.24% +2.90% +1.61% -1.15% -1.60%
Empower Variable Annuity........ +2.29% +2.95% +1.65% -1.10% -1.56%
Wall Street Series.............. +2.93% +3.59% +2.29% -0.48% -0.94%
Income Preferred Variable
Annuity......................... +1.99% +2.64% +1.35% -1.39% -1.85%
<CAPTION>
GLOBAL
ASSET ASSET AMERICAN
ALLOCATION ALLOCATION LEADERS
SERIES SERIES SERIES*
-------------- -------------- --------------
<S> <C> <C> <C>
FOR THE SIX-MONTH
PERIOD ENDED JUNE 30, 2000:
NET ASSET VALUE PER SHARE:
Beginning of period........... $13.17 $22.78 $10.35
End of period................. $13.49 $22.78 $10.15
ACCUMULATION UNIT PERFORMANCE:
Fortis Opportunity
Annuity/Masters
Variable Annuity............ +1.73% -0.68% -2.20%
Harmony Investment Life....... +2.04% -0.39% -2.11%
Wall Street Series 220/500.... +1.83% -0.59% -2.17%
Wall Street Series Survivor... +1.74% -0.68% -2.20%
Empower Variable Annuity...... +1.78% -0.64% -2.19%
Wall Street Series............ +2.42% -0.02% -1.99%
Income Preferred Variable
Annuity....................... +1.48% -0.93% -2.28%
</TABLE>
<TABLE>
<CAPTION>
CAPITAL GROWTH & S&P BLUE CHIP
VALUE OPPORTUNITIES INCOME 500 INDEX STOCK
SERIES SERIES* SERIES SERIES SERIES
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
FOR THE SIX-MONTH
PERIOD ENDED JUNE 30, 2000:
NET ASSET VALUE PER SHARE:
Beginning of period.................... $15.65 $10.61 $21.94 $22.66 $21.93
End of period.......................... $15.65 $10.49 $21.97 $22.50 $23.46
ACCUMULATION UNIT PERFORMANCE:
Fortis Opportunity Annuity/Masters
Variable Annuity..................... -0.68% -1.28% -0.54% -1.38% +6.24%
Harmony Investment Life................ -0.39% -1.18% -0.24% -1.09% +6.56%
Wall Street Series 220/500............. -0.59% -1.25% -0.45% -1.29% +6.34%
Wall Street Series Survivor............ -0.68% -1.28% -0.54% -1.38% +6.25%
Empower Variable Annuity............... -0.64% -1.26% -0.49% -1.33% +6.29%
Wall Street Series..................... -0.02% -1.06% +0.13% -0.72% +6.96%
Income Preferred Variable Annuity...... -0.93% -1.36% -0.79% -1.63% +5.98%
<CAPTION>
BLUE CHIP INTERNATIONAL MID CAP
STOCK STOCK STOCK
SERIES II* SERIES SERIES
-------------- -------------- --------------
<S> <C> <C> <C>
FOR THE SIX-MONTH
PERIOD ENDED JUNE 30, 2000:
NET ASSET VALUE PER SHARE:
Beginning of period.................... $10.36 $17.94 $10.68
End of period.......................... $10.37 $17.25 $11.44
ACCUMULATION UNIT PERFORMANCE:
Fortis Opportunity Annuity/Masters
Variable Annuity..................... -0.14% -4.45% +6.39%
Harmony Investment Life................ -0.04% -4.16% +6.71%
Wall Street Series 220/500............. -0.11% -4.36% +6.49%
Wall Street Series Survivor............ -0.14% -4.44% +6.39%
Empower Variable Annuity............... -0.12% -4.40% +6.44%
Wall Street Series..................... +0.08% -3.80% +7.11%
Income Preferred Variable Annuity...... -0.22% -4.68% +6.13%
</TABLE>
<TABLE>
<CAPTION>
SMALL CAP GLOBAL GLOBAL LARGE CAP INVESTORS
VALUE GROWTH EQUITY GROWTH GROWTH
SERIES SERIES SERIES* SERIES SERIES*
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
FOR THE SIX-MONTH
PERIOD ENDED JUNE 30, 2000:
NET ASSET VALUE PER SHARE:
Beginning of period.............. $10.20 $34.72 $10.28 $15.05 $10.42
End of period.................... $10.55 $33.90 $10.45 $15.32 $10.38
ACCUMULATION UNIT PERFORMANCE:
Fortis Opportunity
Annuity/Masters
Variable Annuity............... +2.70% -3.01% +1.45% +1.08% -0.61%
Harmony Investment Life.......... +3.01% -2.72% +1.55% +1.38% -0.51%
Wall Street Series 220/500....... +2.80% -2.92% +1.48% +1.17% -0.58%
Wall Street Series Survivor...... +2.71% -3.00% +1.45% +1.08% -0.61%
Empower Variable Annuity......... +2.75% -2.96% +1.46% +1.13% -0.60%
Wall Street Series............... +3.39% -2.35% +1.67% +1.76% -0.39%
Income Preferred Variable
Annuity.......................... +2.45% -3.25% +1.37% +0.83% -0.69%
<CAPTION>
GROWTH AGGRESSIVE
STOCK GROWTH
SERIES SERIES
-------------- --------------
<S> <C> <C>
FOR THE SIX-MONTH
PERIOD ENDED JUNE 30, 2000:
NET ASSET VALUE PER SHARE:
Beginning of period............ $45.14 $33.79
End of period.................. $51.82 $37.86
ACCUMULATION UNIT PERFORMANCE:
Fortis Opportunity
Annuity/Masters
Variable Annuity............. +14.02% +11.29%
Harmony Investment Life........ +14.37% +11.62%
Wall Street Series 220/500..... +14.13% +11.39%
Wall Street Series Survivor.... +14.03% +11.29%
Empower Variable Annuity....... +14.08% +11.34%
Wall Street Series............. +14.79% +12.04%
Income Preferred Variable
Annuity........................ +13.74% +11.01%
</TABLE>
* For the period May 1, 2000 to June 30, 2000.
<PAGE>
FORTIS SERIES FUND, INC.
SEMI-ANNUAL REPORT
--------------------------------------------------------------------------------
OPERATING EXPENSES:**
<TABLE>
<CAPTION>
U.S. GLOBAL
MONEY GOVERNMENT DIVERSIFIED MULTISECTOR HIGH ASSET ASSET AMERICAN
MARKET SECURITIES INCOME BOND YIELD ALLOCATION ALLOCATION LEADERS
SERIES SERIES SERIES SERIES SERIES SERIES SERIES SERIES*
-------- ------------ ----------- ----------- -------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
FOR THE SIX-MONTH
PERIOD ENDED JUNE 30, 2000:
Investment Advisory and
Management Fee......... .30% .47% .48% .75% .50% .90% .47% .90%
Other Expenses............ .05% .06% .07% .19% .07% .12% .04% .35%
--- --- --- --- --- ---- --- ----
TOTAL FORTIS SERIES
OPERATING EXPENSES..... .35% .53% .55% .94% .57% 1.02% .51% 1.25%
--- --- --- --- --- ---- --- ----
</TABLE>
<TABLE>
<CAPTION>
CAPITAL GROWTH & S&P BLUE CHIP BLUE CHIP
VALUE OPPORTUNITIES INCOME 500 INDEX STOCK STOCK
SERIES SERIES* SERIES SERIES SERIES SERIES II*
-------- ------------- --------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
FOR THE SIX-MONTH
PERIOD ENDED JUNE 30, 2000:
Investment Advisory and
Management Fee........................ .70% .90% .63% .40% .87% .95%
Other Expenses.......................... .07% .35% .05% .04% .05% .35%
--- ---- --- --- --- ----
TOTAL FORTIS SERIES OPERATING
EXPENSES.............................. .77% 1.25% .68% .44% .92% 1.30%
--- ---- --- --- --- ----
<CAPTION>
INTERNATIONAL MID CAP
STOCK STOCK
SERIES SERIES
------------- --------
<S> <C> <C>
FOR THE SIX-MONTH
PERIOD ENDED JUNE 30, 2000:
Investment Advisory and
Management Fee........................ .83% .90%
Other Expenses.......................... .07% .15%
--- ----
TOTAL FORTIS SERIES OPERATING
EXPENSES.............................. .90% 1.05%
--- ----
</TABLE>
<TABLE>
<CAPTION>
SMALL CAP GLOBAL GLOBAL LARGE CAP INVESTORS GROWTH AGGRESSIVE
VALUE GROWTH EQUITY GROWTH GROWTH STOCK GROWTH
SERIES SERIES SERIES* SERIES SERIES* SERIES SERIES
---------- -------- -------- ---------- --------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
FOR THE SIX-MONTH
PERIOD ENDED JUNE 30, 2000:
Investment Advisory and
Management Fee........................ .90% .70% 1.00% .90% .90% .61% .62%
Other Expenses.......................... .09% .05% .35% .05% .35% .03% .03%
--- --- ---- --- ---- --- ---
TOTAL FORTIS SERIES OPERATING
EXPENSES.............................. .99% .75% 1.35% .95% 1.25% .64% .65%
--- --- ---- --- ---- --- ---
</TABLE>
* For the period May 1, 2000 to June 30, 2000.
** Represents the expenses of the series itself, without the expenses associated
with the variable annuities or variable universal life insurance policies,
(annualized).
<PAGE>
HOW TO USE THIS REPORT
For a quick overview of 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 4
Schedules of Investments
Money Market Series 28
U.S. Government Securities Series 29
Diversified Income Series 31
Multisector Bond Series 37
High Yield Series 42
Global Asset Allocation Series 47
Asset Allocation Series 53
American Leaders Series 64
Value Series 67
Capital Opportunities Series 69
Growth & Income Series 72
S&P 500 Index Series 75
Blue Chip Stock Series 80
Blue Chip Stock Series II 83
International Stock Series 85
Mid Cap Stock Series 87
Small Cap Value Series 89
Global Growth Series 91
Global Equity Series 94
Large Cap Growth Series 97
Investors Growth Series 99
Growth Stock Series 102
Aggressive Growth Series 105
Statements of Assets and Liabilities 108
Statements of Operations 112
Statements of Changes in Net Assets 116
Notes to Financial Statements 120
Directors and Officers 140
Products and Services 141
</TABLE>
3
<PAGE>
[PHOTO]
FORTIS SERIES FUND, INC. SEMI-ANNUAL REPORT,
JUNE 30, 2000
DEAR SHAREHOLDER:
The first six months of 2000 have been extremely volatile for the capital
markets. The year started robustly in terms of economic activity, strong
corporate profits, and optimistic equity markets. Just six months later, the
economy is slowing appreciably, corporate profit expectations are being lowered
and the equity market as measured by the DJIA is down over 8%. It has been a
very challenging environment for investors causing behavior to shift from one of
maximizing return with little regard for risk to one of preserving capital.
Growth of the economy in the first quarter was a record 7% in real terms. This
growth reflected a confident consumer and very strong profit growth for
corporations. These two important parts of the economy went on a buying spree in
the first few months of the year. Consumers benefited from record bonus and
stock option payments, full employment, and early tax refunds which culminated
in significant spending on houses, automobiles, and in retail stores.
Corporations, flush with solid cash flow, having successfully negotiated Y2K,
and with high stock prices, spent heavily on new technology and increased merger
activity. Stock prices soared. As the economy gathered steam, even stock prices
of old economy industries improved as those stocks attracted investor attention.
By early March, this buoyancy also attracted the attention of the Federal
Reserve which clearly was concerned about potential for increased inflation and
redoubled its efforts to slow consumer spending by raising interest rates. As a
result, the heady valuations in the equity market crumbled in a severe
correction resulting in stock prices declining as much as 60% in a few weeks. In
the last two months, we have indeed seen the economy slow, burdened with higher
interest rates. Consumer spending on housing and autos has declined and retail
sales are very soft. In the corporate arena, IPO activity has come to a virtual
halt and many young companies are experiencing severe difficulty in accessing
the capital necessary to remain viable. Additionally, we now see that inflation
has risen, largely owing to higher energy prices, but also reflecting higher
employment costs. Margins are beginning to deteriorate and earnings expectations
are declining.
We believe that the work of the Federal Reserve to slow economic activity and
dampen inflation prospects is now largely done. The economy is expected to post
3-3.5% growth this year, down from the 7% rate of the first quarter. Inflation
will likely rise to 3% before the year is over. With this forecast, we expect
that corporate profits will rise about 12%; a solid increase. Within this
environment, we expect the equity market to show some improvement in the second
half of the year as investors start to focus on slower, but more sustainable
growth and appreciate the improved valuation levels of stocks that are now
available. We expect the stock market by year-end to be +/- 5% of where we
started the year. During this difficult and challenging period, we were able to
unwind some of our overweight in technology relatively early and benefitted from
an early move into energy stocks which helped performance. We are confident that
our disciplined investment processes will continue to help us provide solid
returns for our shareholders.
In the past six months interest rates have reflected both a tightening of
monetary policy and a significant reduction in the available supply of Treasury
securities. The former has produced an increase in short-term rates as the
Federal Reserve's Open Market Committee has raised its target rate for
over-night bank borrowings three times this year. The last, a half point move in
May, followed two 25 basis point moves in February and March. The reduction in
Treasury debt, brought about by the budget surplus, has produced a marked
disparity in performance between Treasury bonds and private securities. For
example, according to Lehman Brothers, twenty year plus U.S. Treasuries provided
a 10.01% return during the first six months of the year, compared with 2.56% for
long-term Industrial bonds. The underperformance of the non-Treasury group has
created unusually good value in that area and we have begun to increase our
exposure to these so-called "spread sectors" accordingly. The economy has shown
signs of slowing recently and, while it may be premature to say that the Federal
Reserve is done tightening, we believe that the bond market is offering
diversified investors unusually attractive investment opportunities at this
time.
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>
4
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY AS OF 6/30/2000
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Depository Credit - Banking 20.9%
Captive Auto Finance 19.5%
Consumer Lending 18.4%
Electric Generation, Transmission and
Distribution 14.9%
Sales Financing 4.9%
Securities and Commodity Contracts and Brokerage 4.9%
Commercial Banking 4.6%
Oil and Gas Extraction 4.6%
Captive Equipment Finance 4.5%
Beverage Manufacturing 2.8%
</TABLE>
FORTIS SERIES FUND: MONEY MARKET SERIES
AS THE MOST CONSERVATIVE SUBACCOUNT, THIS PORTFOLIO IS DESIGNED FOR INVESTORS
SEEKING LIQUIDITY AND STABLE PRINCIPAL. ACCORDINGLY, THE MONEY MANAGERS CHOOSE
HIGH-QUALITY, SHORT-TERM MONEY MARKETS AND U.S. GOVERNMENT SECURITIES.
During the first quarter of 2000, U.S. economic growth accelerated to a 5.5%
annual pace from the 4.0% pace of the previous three years. Prior to the first
quarter, the Federal Reserve Bank ("the Fed") expressed concern that the economy
would overheat and cause inflation to rise. In an effort to prevent an increase
in the rate of inflation, the Fed raised the federal funds rate 0.75% in a
series of 0.25% moves over the last half of 1999. When growth accelerated in the
first quarter of this year the Fed became more aggressive, raising the federal
funds rate another 1.00% by May 16, 2000. Recently, there have been signs that
higher interest rates are beginning to slow the economy. Employment growth,
retail sales and manufacturing activity have all slowed. There have been
numerous times throughout the current expansion when the economy hit a lull only
to rebound quickly so the jury is still out as to whether the current slowdown
will last. The Fed seems content to keep interest rates at their current levels
for now, but any signs of faster growth are likely to lead to further interest
rate hikes.
Money market yields benefited from higher federal funds rates because the yields
on short-term securities generally track the federal funds rate very closely.
For the six months ending June 30, 2000, the fund returned 2.93% compared to
2.59% for the prior six-month period. 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. Maturity is the length of time between now and
the date a security is repaid. During the past six months, the fund's average
maturity has fluctuated between 20-40 days. We kept the average maturity
relatively short throughout the first half of the year because short-term rates
were rising and we felt that longer maturities weren't offering enough yield to
compensate us for the potential of higher rates.
OUTLOOK
Two months of weaker economic data has led many to believe that the U.S. economy
is heading towards a "soft landing", in which the economy slows enough to temper
inflation but avoids a significant slowdown. While not unprecedented, soft
landings are rare and thus we remain wary of either a re-acceleration or a more
significant slowing of growth. Nonetheless, we feel that growth will slow
modestly in the second half of 2000 and that short-term rates will be stable to
modestly higher over the next six months.
5
<PAGE>
PORTFOLIO ALLOCATION
AS OF 6/30/2000
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Federal National Mortgage Association 44.3%
U.S. Treasury Securities 28.1%
Other Direct Federal Obligations 17.6%
Government National Mortgage Association 9.1%
Federal Home Loan Mortgage Corporation 0.9%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/2000
<TABLE>
<CAPTION>
Percent of
Bonds Net Assets
-------------------------------------------------------------------
<C> <S> <C>
1. TVA Global (6.375%) 2005 11.4%
2. FNMA (7.00%) 2030 7.5%
3. Federal Home Loan Bank (7.31%) 2004 6.2%
4. U.S. Treasury Bond (10.375%) 2012 5.3%
5. U.S. Treasury Note (5.00%) 2001 5.0%
6. U.S. Treasury Bond (8.125%) 2021 4.4%
7. FNMA (7.00%) 2030 4.1%
8. GNMA (7.50%) 2027 3.7%
9. U.S. Treasury Note (5.50%) 2003 3.7%
10. GNMA (7.00%) 2030 3.6%
</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 economy continued its pattern of strong growth over the first six months of
2000, with real Gross Domestic Product ("GDP") expected to be greater than 4%.
Solid job growth, (1,566,000 new jobs were created), and strong consumer
spending were continued themes of this economic expansion. This growth was
particularly impressive given that the Federal Reserve (the "Fed") has raised
short-term interest rates 1.75% over the last twelve months, with 1% of that
increase occurring during the first half of this year.
Three major forces were at work in the market over the last six months. The
first was the Fed, who as we indicated above, raised short-term rates 1% in an
attempt to slow the economy to its 3-3.5% long-term growth target. The second
was the Treasury, who announced significant reductions to its expected borrowing
needs. Because of sizeable current and projected budget surpluses, the Treasury
reduced the size and frequency of a number of its auctions, and implemented a
debt buyback program aimed at outstanding bonds with ten or more years left to
maturity. The third and final force at work was Congress, who through House
Representative Richard Baker began investigating the activities of the
Government Sponsored Enterprises (GSEs such as FNMA, FHLMC, and FHLB) to
determine whether they unfairly benefit from the market's perception that their
debt is U.S. Government guaranteed.
The combination of the Fed raising short term rates and the Treasury buying back
long maturity debt (to date they have repurchased $15 billion of their $30
billion target for this year) caused the yield curve to invert (shorter maturity
issues yielding more than longer maturity issues.) For the six months ended
June 30, 2000, yields on 2 year Treasuries rose 0.12% to 6.35% while yields on
30 year Treasuries fell 0.58% to 5.90%. The reduction in future Treasury debt
issuance, coupled with the concerns about the credit worthiness of the
Government Sponsored Enterprises, resulted in higher yield premiums for both MBS
and Agency Debentures. On average, yield premiums on non-Treasury issues rose
0.4% over the first six months of 2000.
As we mentioned in our previous letter, we felt that the buyback program might
lead to an inverted yield curve. Accordingly, we positioned the portfolio to
benefit from the inversion, increasing our exposure to the long term (10 +
years) components of the Treasury market while maintaining a 4.75 year duration.
Unfortunately, we did not expect the congressional inquiry into the practices of
the GSEs, and our modest overweight in this sector hurt the portfolio's
performance. For the six months ended June 30, 2000, the portfolio returned
3.59%, which compares favorably to 3.48% for the Lehman Intermediate Government
Index.
Going forward, despite the appearance of an economy that will grow more modestly
in the second half of the year, we would not be surprised if the Fed raised
short-term interest rates one more time this year. We also expect the yield
curve to remain inverted, as the Treasury continues to retire long term debt as
part of its buyback program. Longer term, we believe that the Fed will
successfully slow the economy to a more moderate pace and that long interest
rates can stay below 6%. Finally, while we don't expect significant short-term
performance relative to Treasuries from MBS and Agency Debentures, we think
their yield premiums are attractive.
VALUE OF $10,000 INVESTED JULY 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
7/1/90 $10,000 $10,000
91 $11,054 $10,904
92 $12,476 $12,276
93 $13,728 $13,687
94 $13,703 $12,988
95 $15,039 $14,538
96 $15,780 $15,172
97 $16,876 $16,325
98 $18,291 $18,002
99 $19,101 $18,435
00 $19,958 $19,139
</TABLE>
<TABLE>
<S> <C> <C>
U.S. GOVERNMENT SECURITIES SERIES
AVERAGE ANNUAL TOTAL RETURN*
1 YEAR 5 YEAR 10 YEAR
+3.82% +5.65% +6.71%
</TABLE>
Annual period ended June 30
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the
Series itself, without the expenses associated with the variable annuities or
variable universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** An unmanaged index of government bonds with an average maturity of three to
four years.
<PAGE>
PORTFOLIO ALLOCATION
AS OF 6/30/2000
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Corporate Bonds - Investment Grade 47.7%
Corporate Bonds - Non-Investment Grade 21.5%
U.S. Government Agencies 8.9%
Asset Backed Securities 8.6%
U.S. Treasury Securities 6.9%
Cash Equivalent/Receivables 6.4%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/2000
<TABLE>
<CAPTION>
Percent of
Bonds Net Assets
-------------------------------------------------------------------
<C> <S> <C>
1. FNMA (6.50%) 2014 2.5%
2. FNMA (7.00%) 2029 2.5%
3. U.S. Treasury Bond (8.125%) 2021 2.4%
4. GTE Corp. (7.51%) 2009 2.3%
5. Mortgage Capital Funding, Inc. (7.90%) 2006 2.3%
6. U.S. Treasury Bond (5.25%) 2029 2.0%
7. DLJ Mortgage Acceptance Corp. (8.80%) 2003 1.9%
8. Bear Stearns Capital Trust (7.00%) 2027 1.7%
9. Tosco Corp. (7.80%) 2027 1.5%
10. Delta Air Lines (10.50%) 2016 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.
The U.S. economy continued to expand in the first half of 2000 at a rapid pace
that brought about another series of interest rate increases by the Federal
Reserve (the "Fed"). Despite the 0.75% increase in Federal Funds rate in the
second half of 1999: (1) Gross Domestic Product ("GDP") growth in 2000 exceeded
the 4% increase of GDP in 1999; (2) the labor market continued to exhibit a
strong job growth; and (3) consumer spending remained unaffected by this tighter
monetary policy. The Fed, concerned that these continued economic conditions
could fuel inflationary pressures, increased Federal Funds rates one full
percentage point during the first half of the 2000. Pressure on short term
interest rates and U.S. buybacks of long maturity treasuries resulted in an
short term interest rates exceeding long term interest rates ("yield curve
inversion").
Higher interest rates, Treasury yield curve inversion, and a volatile equity
market are not a friendly environment for the fixed income market, especially
for corporate bonds. Increased demand for higher quality and short-duration
instruments caused a liquidity crunch during the second quarter that pushed
corporate and other non-Treasury prices lower relative to Treasuries causing
this portion of the portfolio to decline in value. By the end of the second
quarter of 2000, as some signs of slowdown started to appear, liquidity was
partially restored and spreads decreased but only to the October 1998 levels. As
a result, U.S. Treasuries was the best performing sector during the first six
months of 2000, as it benefited the most from the yield curve inversion.
We began the year with a negative outlook on short term interest rates,
believing that the Fed is going to continue to raise interest rates until
economic growth showed evidence of slowing. However, we were not as negative on
long term interest rates because we believed that they would benefit from the
Treasury buybacks and the reduced supply of long Treasuries. We maintained a
neutral duration in the fund versus its benchmark for most of this period. In
May, we shortened the duration to 95% for a brief period, then moved it back
towards neutral. With respect to non-Treasury assets, we took advantage of the
spread widening to increase our exposure to corporate investment grade, and
below investment grade securities. Year-to-date, the fund's return was 2.29%
compared to a 4.18% for the Lehman Government Corporate Index and 3.99% for the
Lehman Aggregate Index.
Going forward, we expect the economy to continue to show signs of slower growth
in the second half of 2000, but not enough to rule out another interest rate
increase by the Fed. The fund stands to benefit from this slowdown that appears
to be modest enough to qualify for a "soft landing". Such an economic
environment would lead to lower interest rate levels and decreased yield spreads
for non-Treasury securities.
VALUE OF $10,000 INVESTED JULY 1, 1990
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
LEHMAN BROTHERS
AGGREGATE BOND INDEX** DIVERSIFIED INCOME SERIES
<S> <C> <C>
7/1/90 $10,000 $10,000
91 $11,070 $11,001
92 $12,624 $12,392
93 $14,112 $14,071
94 $13,928 $13,703
95 $15,676 $15,259
96 $16,462 $16,029
97 $17,804 $17,399
98 $19,681 $19,410
99 $20,300 $19,459
00 $21,227 $19,935
</TABLE>
<TABLE>
<CAPTION>
DIVERSIFIED INCOME SERIES
AVERAGE ANNUAL TOTAL RETURN*
<S> <C> <C>
1 YEAR 5 YEAR 10 YEAR
+2.45% +5.49% +7.14%
</TABLE>
Annual period ended June 30
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the
Series itself, without the expenses associated with the variable annuities or
variable universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** An unmanaged index of government, corporate and mortgage-backed securities
with an average maturity of approximately nine years.
7
<PAGE>
PORTFOLIO ALLOCATION
AS OF 6/30/2000
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Equity Securities 0.1%
Corporate Bonds-Investment Grade 52.6%
Corporate Bonds-Non-Investment Grade 14.3%
U.S. Treasury Securities 17.9%
U.S. Government Agencies 11.9%
Cash Equivalents/Receivables 3.2%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/2000
<TABLE>
<CAPTION>
Percent of
Bonds Net Assets
-------------------------------------------------------------------
<C> <S> <C>
1. U.S. Treasury Note (6.50%) 2010 12.9%
2. European Investment Bank FRN(5.85%) 2002 6.5%
3. U.S. Treasury Note (6.50%) 2002 5.0%
4. Federal Home Loan Bank (6.125%) 2003 4.4%
5. FNMA (6.25%) 2002 3.9%
6. Federal Farm Credit Bank (5.15%) 2003 3.6%
7. Capital One Financial Corp. (7.25%) 2006 1.4%
8. Republic New York Corp. (9.70%) 2009 1.1%
9. Occidental Petroleum Corp. (9.25%) 2019 1.1%
10. CSC Holdings, Inc. (7.875%) 2007 1.1%
</TABLE>
FORTIS SERIES FUND: MULTISECTOR BOND SERIES
(SUBADVISED BY AIM CAPITAL MANAGEMENT, INC.)
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.
In May, the Federal Reserve (the Fed) raised the federal funds rate to 6.5%, its
highest level in nine years. The latest rate hike was the sixth since last
summer and has left many investors wondering how far the Fed's tightening will
go before the U.S. economy slows to a satisfactory pace.
During the second quarter, U.S. Treasury securities, particularly longer-term
issues, continued to perform better than corporate bonds. Longer-term Treasuries
benefited from their relative scarcity and an on-going federal government
buyback. Corporate bonds by contrast, continued to struggle. In fact, the
difference between yields on 10-year Treasuries and that of high-yield corporate
bonds has widened to over 600 basis points. (One hundred basis points are equal
to one percentage point.)
FUND OVERVIEW
On March 15, 2000, Multisector Bond Series, formerly know as Global Bond Series,
changed its investment objective in conjunction with a change in sub-adviser. As
Global Bond Series, the Series invested principally in high quality U.S. and
foreign government and corporate fixed income securities. The new investment
objective of the fund is to invest in U.S. and foreign government obligations
and fixed rate corporate debt including investment and non-investment grade
bonds. The Series' sub-adviser changed from Mercury Asset Management
International Ltd., to AIM Capital Management, Inc.
The Fortis Multisector Bond Series portfolio posted a total return of -0.48% for
the quarter, while the Lehman Brothers Aggregate Bond Index returned 3.99%.
The majority of the fund's portfolio is invested in corporate bonds -- both
investment grade and high-yield issues. With yields on high-yield corporate
bonds at historical highs, they provide a compelling investment option and
attractive income.
The fund's holdings were well diversified over a wide range of industries,
including broadcasting, electric companies and the telecommunications
sector -- both the cellular/wireless industry and the long-distance industry.
OUTLOOK
The near-term outlook for bonds in general could depend on the Fed's ability to
bring the economy to a "soft landing." There are signs that the economy is
slowing. Consequently, the Fed may soon wind down its tightening cycle.
If the Fed succeeds in slowing economic growth to a more sustainable rate, it
could prolong economic expansion. That could bode well for corporate
bonds -- both investment grade and high-yield -- as corporations can better meet
their debt obligations.
VALUE OF $10,000 INVESTED JANUARY 3, 1995
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
SALOMON BROS WORLD LEHMAN BROTHERS AGGREGATE MULTISECTOR
GOV'T BOND INDEX ** BOND INDEX *** BOND SERIES
<S> <C> <C> <C>
1/3/95 $10,000 $10,000 $10,000
95 $11,688 $11,144 $11,541
96 $11,728 $11,704 $11,588
97 $12,183 $12,657 $12,083
98 $12,708 $13,992 $12,715
99 $13,233 $14,432 $12,774
00 $13,685 $15,091 $12,874
</TABLE>
<TABLE>
<CAPTION>
MULTISECTOR BOND SERIES
AVERAGE ANNUAL TOTAL RETURN*
<S> <C> <C>
SINCE
1 YEAR 5 YEAR JANUARY 3, 1995****
+0.79% +2.21% +4.71%
</TABLE>
Annual period ended June 30
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the
Series itself, without the expenses associated with the variable annuities or
variable universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** An unmanaged index of world government bonds with maturities of at least
one year.
*** An unmanaged index of government, corporate and mortgage-backed securities
with an average maturity of approximately nine years.
**** Date shares were first offered to the public.
8
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY
AS OF 6/30/2000
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 26.2%
Wired Telecommunications Carriers 11.8%
Cable and Other Program Distribution 11.4%
Other Telecommunications 9.6%
Wireless Telecommunications Carriers 9.4%
Gambling Industries 7.2%
Cash Equivalents/Receivables 5.1%
Radio and Television Broadcasting 5.0%
Other Information Services 4.4%
Cable and Other Subscription Programming 3.8%
Oil and Gas Extraction 3.2%
Motor Vehilcle Parts Manufacturing 2.9%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/2000
<TABLE>
<CAPTION>
Percent of
Bonds Net Assets
-------------------------------------------------------------------
<C> <S> <C>
1. TeleCorp PCS, Inc. (11.625%) 2009 3.1%
2. Nextlink Communications (10.50%) 2009 2.7%
3. Argosy Gaming (10.75%) 2009 2.5%
4. United Pan-European Communications N.V. (11.25%)
2009 2.2%
5. United International Holdings (10.75%) 2008 2.2%
6. Adelphia Communications (9.375%) 2009 2.2%
7. Williams Communications Group, Inc. (10.875%) 2009 1.9%
8. PSINet, Inc., (11.00%) 2009 1.8%
9. NTL Communications Corp. (12.375%) 2008 1.8%
10. Fairchild Semiconductor (10.375%) 2007 1.6%
</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 six-month period ended June 30, 2000, was a difficult one for the U.S. fixed
income market. The U.S. economy came roaring out of the gates this year as Y2K
fears faded and the economy showed persistent strength with Gross Domestic
Product (GDP) growth in the 5% range. The strong economy, a red-hot IPO market
and a frothy "tech stock" market siphoned investor funds away from the fixed
income securities. The high yield market was not immune to this trend as
investors pulled money out of fixed income mutual funds, forcing managers to
liquidate holdings, driving down corporate bond prices. The high yield market
finished the second quarter on a positive note as June was the best month of the
year for performance and investment inflow into high yield mutual funds. For the
first half of the year, the Fortis Series High Yield Fund returned -0.94%,
outperforming the Lehman Bros. High Yield Index return of -1.21%.
The Federal Reserve Board (the "Fed") became increasingly concerned that the
combination of tight labor markets, the wealth effect created by record equity
valuations, rising wages, and high and rising energy prices would rekindle
inflation. Since price stability remains its primary objective, the Fed decided
to raise short-term interest rates, extending the current round of interest rate
hikes they began in mid-1999. Also significant was the bond buy-back program
announced by the U.S. Treasury. This announcement caused intermediate and
long-term interest rates to decline that could lead to inflation. Despite the
buy-back program, by the end of the second quarter, the steady upward march by
the equity markets halted, the labor markets began to stabilize and the economy
showed early signs of cooling. The Fed's intervention in the Federal Funds and
U.S. Treasury markets increased market uncertainty and kept some fixed income
investors sidelined. The high yield market saw slow steady selling during this
period, with declining bond prices offsetting the high level of income earned by
high yield investors.
Our fund's performance was enhanced in this down-market environment by our
underweighting in lower-quality high yield bonds, rated CCC and below. The fund
was also helped by its holdings in higher-quality BB rated bonds and its
exposure to top performing sectors, such as the energy sector. On the other side
of the ledger, our interest rate-sensitive zero coupon bond holdings lagged as
interest rates climbed higher. We also chose to reduce our holdings in "home
builders" as we anticipated a slowdown driven by rising mortgage rates. This
decision turned out to be a bit premature as housing sales continued to be
strong despite higher borrowing costs during the first half of the year.
OUTLOOK
We expect economic growth to slow during the second half of the year primarily
due to the drag caused by high short-term interest rates and high energy prices.
This slowdown would relieve some of the pressure on the Fed to raise interest
rates. Our economic outlook is for a soft-landing with the slowdown cushioned by
productivity gains. Also, the gradual approach toward raising rates taken by the
Fed should provide corporate America with some time to adjust to the changing
business climate, making the downturn less painful to prudent managers. To the
extent this scenario unfolds, we plan to keep the fund broadly diversified with
an emphasis on companies expected to produce stable and improving cash flow, and
would underweight cyclical industries such as industrial commodities. We feel
the recent increase in interest rates created an opportunity for investors to
capture high levels of current income and the potential for attractive total
returns if bond prices begin to retrace their year-to-date losses.
VALUE OF $10,000 INVESTED MAY 2, 1994
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
LEHMAN BROTHERS
HIGH YIELD INDEX*** HIGH YIELD SERIES
<S> <C> <C>
5/2/94 $10,000 $10,000
94 $10,036 $9,998
95 $11,425 $10,817
96 $12,531 $11,694
97 $14,271 $13,003
98 $15,892 $13,860
99 $15,833 $13,614
00 $15,670 $13,686
</TABLE>
<TABLE>
<CAPTION>
HIGH YIELD SERIES
AVERAGE ANNUAL TOTAL RETURN*
<S> <C> <C>
SINCE
1 YEAR 5 YEAR MAY 2, 1994**
+0.53% +4.82% +5.22%
</TABLE>
Annual period ended June 30
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the
Series itself, without the expenses associated with the variable annuities or
variable universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of lower quality, high yield corporate debt securities.
9
<PAGE>
PORTFOLIO ALLOCATION
AS OF 6/30/2000
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Equity Securities 57.4%
Foreign - Government Bonds - Investment Grade 21.3%
Corporate Bonds - Investment Grade 9.6%
Cash Equivalents/Receivables 7.0%
U.S. Government Securities 4.5%
Asset Backed Securities 0.2%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/2000
<TABLE>
<CAPTION>
Percent of
Securities Net Assets
-------------------------------------------------------------------
<C> <S> <C>
1. Japan JGB #207A (0.90%) 2008 4.1%
2. Bundesrepublik Deutschland (6.50%) 2027 3.1%
3. Bundesobligation Deutschland (5.00%) 2001 2.1%
4. Nippon Telegraph & Telephone Corp. 1.7%
5. Government of France (5.50%) 2007 1.5%
6. Philip Morris Companies, Inc. 1.5%
7. United Kingdom Treasury (8.00%) 2000 1.5%
8. Kingdom of Denmark (7.00) 2004 1.4%
9. Total Fina Elf 1.3%
10. Government of France (5.25%) 2008 1.3%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES
FOR THE YEAR ENDED 6/30/2000
STOCK ADDITIONS: STOCK ELIMINATIONS:
Alcatel ABN-AMRO holding NV
BAE SYSTEMS plc Enhance Financial Services Group, Inc.
British Telecommunications plc Finova Group, Inc.
Diageo plc Mediaset S.p.A.
ENI S.p.A. National Westminster Bank plc
Matsushita Elec Noble Drilling Corp.
Royal Dutch Petroleum Co. NY Schering AG
Shares Scor S.A.
Sankyo Co. Ltd. Terra Nova (Burmuda) Holdings
SBC Communications, Inc. UST Corp.
UBS AG
FORTIS SERIES FUND: GLOBAL ASSET ALLOCATION SERIES
(SUBADVISED BY MORGAN STANLEY ASSET MANAGEMENT)
DESIGNED ESPECIALLY FOR INVESTORS WHO WANT A FLEXIBLE PORTFOLIO THAT SEEKS TOTAL
RETURN FROM A BLEND OF GROWTH POTENTIAL AND CURRENT INCOME FROM AROUND THE
WORLD, INCLUDING THE UNITED STATES. MONEY MANAGERS INVEST IN GLOBAL STOCKS,
BONDS AND MONEY MARKETS IN PERCENTAGES THAT MAY VARY WITH MARKET CONDITIONS.
During the first six-months of 2000, the portfolio returned 2.42% compared to a
return of -1.43% for the benchmark of 60% MSCI World Index and 40% Salomon
Brothers World Government Bond Index.
PERFORMANCE
Performance of the global fixed income portion of the portfolio was essentially
flat during the first half of the year, with a return of -0.12% verses 0.03% for
the Salomon Brothers World Government Index. Absolute performance was positive
in local currency terms as interest rates declined broadly across Europe. These
positive returns were offset by the continued strength of the U.S. dollar versus
most major currencies. Interest rate and country decisions were positive. In
particular, the portfolio benefited from the flattening of the U.S. Treasury and
Euro government bond curves, while profiting by underweighting the long end of
the U.K. market. Significant widening of credit spreads as a result of
significant government debt buybacks offset these positives. Exposure to the
euro versus the yen also negatively impacted performance.
The global equity portion significantly outperformed the benchmark, producing a
return of 4.6% versus a -2.41% drop in the MSCI World Index. This outperformance
came mostly from the second quarter when the narrow leadership of technology
growth stocks, in which the portfolio is underweighted, finally lost ground.
Consequently, the portfolio was rewarded for its significant overweight in
consumer staples -- one of the best performing sectors in the second quarter.
STRATEGY
We view current levels of real yields in the U.S. as representing fair value,
and thus are neutral U.S. interest rate risk. We remain constructive on European
bond markets, with their higher real yields and steeper yield curves. We
continue to view the Japanese market as unattractive, due to likely stronger
economic growth and poor public finances. The portfolio remains 5% overweight
European currencies versus the Japanese yen. Credit spreads remain at
historically wide levels. We view overweighting non-governments to be one of the
best opportunities in the global bond markets.
The structure of the equity portion reflected our bottom up stock selection
style. The major change over the six months was an increase in our weighting to
Japan. This resulted from strong relative performance and increased conviction
in the restructuring opportunity in industrial Japan. Our industry underweights
were little changed, reflecting the ongoing defensiveness of the portfolio.
Consumer defensive staples, telecoms and utilities were heavily overweighted;
pharmaceutical, technology and interest rate sensitive financials were
underweighted.
OUTLOOK
Global Fixed Income: Interest rate increases in the U.S. should act to slow
economic growth there in the second half of the year, though much of this impact
is already priced into the market. High oil prices will have a short-term impact
on inflation, though we do not anticipate a sustained boost to inflation. On
balance financial conditions still seem supportive of world growth. Despite the
mentioned interest rate increases strong equity markets globally and a weak Euro
currency are simulative. Continuation of these trends may well produce further
monetary tightening in the second half of 2000.
Global Equity: The portfolio is well positioned, given the ongoing valuation
extremes in the (zero-weighted) mega-cap 'growth' component of the World Index.
The fund's price to cash flow ratio is 9 times, versus 17 times in the index,
yet its balance sheet quality and free cash flow generation remain superior to
the index.
VALUE OF $10,000 INVESTED JANUARY 3, 1995
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
SALOMON BROS WORLD GLOBAL ASSET
GOV'T BOND INDEX + MSCI WORLD INDEX ++ ALLOCATION SERIES
<S> <C> <C> <C>
1/3/95 $10,000 $10,000 $10,000
95 $11,688 $10,942 $11,189
96 $11,728 $13,021 $12,516
97 $12,183 $15,990 $14,368
98 $12,708 $18,783 $16,334
99 $13,233 $21,803 $17,236
00 $13,685 $24,535 $17,695
</TABLE>
<TABLE>
<CAPTION>
GLOBAL ASSET ALLOCATION SERIES
AVERAGE ANNUAL TOTAL RETURN*
<S> <C> <C>
SINCE
1 YEAR 5 YEAR JANUARY 3, 1995**
+2.67% +9.60% +10.96%
</TABLE>
Annual period ended June 30
Past performance is not indicative of future performance. Investment
return and principal value will fluctuate so that shares, when redeemed,
may be worth more or less than their original cost. This represents the
performance of the Series itself, without the expenses associated with the
variable annuities or variable universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
+ An unmanaged index of world government bonds with maturities of at
least one year.
++ An unmanaged index of the world's major equity markets in U.S.
dollars, weighted by stock market value.
10
<PAGE>
PORTFOLIO ALLOCATION
AS OF 6/30/2000
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Equity Securities 64.0%
Corporate Bonds - Investment Grade 16.6%
Corporate Bonds - Non-Investment Grade 7.1%
U.S. Treasury Securities 4.2%
U.S. Government Agencies 3.5%
Cash Equivalents/Receivables 2.4%
Asset Backed Securities 2.2%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/2000
<TABLE>
<CAPTION>
Percent of
Securities Net Assets
-------------------------------------------------------------------
<C> <S> <C>
1. Viacom, Inc. Class B 1.6%
2. Dynegy, Inc. Class A 1.4%
3. Genentech, Inc. 1.4%
4. AES Corp. 1.3%
5. Enron Corp. 1.3%
6. Texas Instruments, Inc. 1.3%
7. American Home Products Corp. 1.2%
8. Interpublic Group of Companies, Inc. 1.1%
9. HCA -- The Healthcare Co. 1.1%
10. Reader's Digest Association, Inc. Class A 1.1%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES
FOR THE PERIOD ENDED 6/30/2000
STOCK ADDITIONS: STOCK ELIMINATIONS:
Ace Ltd. Alltel Corp.
ALZA Corp. America Online, Inc.
Biovail Corp. Cabletron Systems, Inc.
Cardinal Health, Inc. Computer Associates
EOG Resources, Inc. International, Inc.
Nabisco Holdings Corp. Class A EchoStar Communications Corp.
Philip Morris Companies, Inc. Equant N.V. NY Shares
Qwest Communications Global Crossing Ltd.
International, Inc. i2 Technologies, Inc.
Safeway, Inc. Minnesota Mining and
Young & Rubicam, Inc. Manufacturing Co.
Motorola, Inc.
FORTIS SERIES FUND: ASSET ALLOCATION SERIES
DESIGNED FOR INVESTORS WHO SEEK TOTAL RETURN FROM A BLEND OF GROWTH POTENTIAL
AND CURRENT INCOME. THE PORTFOLIO MANAGERS SELECT A MEDLEY OF U.S. STOCKS, BONDS
AND MONEY MARKETS IN PERCENTAGES THAT MAY VARY WITH CURRENT MARKET CONDITIONS.
The first six months of 2000 proved to be a slightly negative period of
performance for the equity market. Early market strength resulting from the
combination of strong earnings growth and benign inflation gave way to the
uncertainty caused by the Federal Reserve's (the "Fed") efforts to slow down the
economy to prevent inflation from resurfacing. Several interest rate hikes kept
a lid on equity market performance because it was suspected that corporate
earning would begin to slow. Meanwhile, the fixed income markets, having already
seen signs of a slowing economy and anticipating that the Fed could engineer a
soft-landing for the economy, registered a positive performance for the
six-month period. An investment environment such as this underscores the
advantage of an asset allocation fund.
For the six months ending June 30, 2000, the Asset Allocation portfolio reported
a slight decrease of 0.02%. This compares to a decline of 0.43% for the S&P 500.
The Lehman Aggregate Bond Index registered an increase of 3.99%. A prorated
combination of the above stock and bond indices posted a gain of 1.71% for the
same period.
The asset allocation of the fund was targeted at 60% stocks and 40% bonds at
mid-year. This represents a gradual cutback in the equity portion of the fund,
which had been at a 65% weighting since the beginning of the year.
In the equity area, positions in technology and telecommunications were pared
back in favor of greater energy and healthcare exposure. Even so, the technology
holdings during the period helped comparative performance early on. The energy
and healthcare sectors are now overweighted versus the market while basic
materials and consumer-related sectors are underweighted. Our relative
underexposure in the financial and basic materials sectors, in the face of Fed
interest rate hikes, contributed positively to fund performance while our
holdings in the services sector generally detracted from overall performance.
The capital markets still face the prospect of rising interest rates by the
Federal Reserve, although various signs have surfaced that show the economy has
begun to slow down. While earnings prospects remain bright, rising interest
rates could affect the valuation levels of equities. In the equity area, we
continue to focus on companies with solid growth prospects at relatively
attractive valuation levels.
In the Fixed income market, the one full percentage point increase in Federal
Funds rate, coupled with a volatile equity market and a Treasury yield curve
inversion (short term interest rates exceeding long term interest rates),
created an environment that was far from favorable for non-Treasury sectors,
especially for corporate bonds. Increased demand for higher quality and
short-duration instruments pushed corporate and other non-Treasury prices lower
relative to Treasuries causing this portion of the portfolio to decline in
value. However, towards the end of the quarter spreads decreased reflecting a
slowdown in the economy. As a result, U.S. Treasuries was the best performing
sector during the first six months of 2000, as it benefited to the most from the
yield curve inversion.
For most of the first six months of 2000, we maintained a neutral duration in
our portfolio versus its benchmark because our outlook for long term interest
rates was not as negative as our outlook for short term interest rates. We
believed that while short term rates were going to remain under pressure for
continued Federal Reserve increases, long term interest rates stood to benefit
from Treasury buybacks and short Treasury supply. With respect to non-Treasury
assets, we took advantage of the spread widening to increase our exposure to
corporate investment grade, and below investment grade securities.
VALUE OF $10,000 INVESTED JULY 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>
7/1/90 $10,000 $10,000 $10,000
91 $11,070 $10,739 $10,651
92 $12,624 $12,185 $12,222
93 $14,112 $13,840 $13,715
94 $13,928 $14,026 $13,682
95 $15,676 $17,677 $16,459
96 $16,462 $22,281 $18,322
97 $17,804 $30,003 $21,790
98 $19,681 $39,067 $26,616
99 $20,300 $47,957 $29,989
00 $21,227 $51,431 $33,985
</TABLE>
<TABLE>
<CAPTION>
ASSET ALLOCATION SERIES
AVERAGE ANNUAL TOTAL RETURN*
<S> <C> <C>
1 YEAR 5 YEAR 10 YEAR
+13.32% +15.61% +13.01%
</TABLE>
Annual period ended June 30
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the
Series itself, without the expenses associated with the variable annuities or
variable universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
+ An unmanaged index of government, corporate, and mortgage-backed securities
with an average maturity of approximately nine years.
++ This is an unmanaged index of 500 common stocks.
11
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY AS OF 6/30/2000
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 42.4%
Insurance Carriers 9.1%
Computer and Peripheral Equipment Manufacturing 7.0%
Cash Equivalents/Receivables 6.6%
Motion Picture and Video Industries 6.3%
Pharmaceutical and Medicine Manufacturing 5.7%
Petroleum and Coal Products Manufacturing 5.4%
Other Telecommunications 5.2%
Depository Credit - Banking 3.6%
Electric Generation, Transmission and Distribution 3.4%
Computer Systems Design and Related Services 2.7%
Semiconductor, Electronic Component Manufacturing 2.6%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/2000
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
-------------------------------------------------------------------
<C> <S> <C>
1. Sun Microsystems, Inc. 2.7%
2. News Corp. Ltd.(The) Preferred ADR 2.2%
3. Viacom, Inc. Class B 2.1%
4. Philips Electronics N.V. ADR 2.0%
5. First Data Corp. 1.9%
6. US West, Inc. 1.7%
7. Boeing Co. 1.7%
8. Exxon Mobil Corp. 1.6%
9. Tyco International Ltd. 1.6%
10. Pharmacia Corp. 1.5%
</TABLE>
FORTIS SERIES FUND: AMERICAN LEADERS SERIES
(SUBADVISED BY FEDERATED)
THIS PORTFOLIO IS DESIGNED FOR INVESTORS WHO WANT LONG-TERM GROWTH OF CAPITAL
AND CURRENT INCOME BY INVESTING IN EQUITY SECURITIES OF BLUE CHIP COMPANIES.
The Fortis American Leaders Series, which was first offered to the public on
May 1, 2000 returned -1.99% for the period, ahead of S&P Barra Value Index's
-3.64% return for the same period. Our quarter benefited from performance in
healthcare, utilities and staples. Lagging sectors included technology, basic
materials and consumer cyclicals. Technology was also the fund's worst performer
relative to that of the S&P 500. Many of our investments in technology are in
companies operating in the software and services arena which were plagued by
poor earnings announcements, including Novell, Unisys, and Electronic Data
Systems. Positive influences on performance for the quarter included favorable
security selection in healthcare (UnitedHealth Group, Oxford Health and Abbott
Laboratories), utilities (Entergy and Coastal Corp.) and consumer staples
(Viacom, Philip Morris and Anheuser Busch).
Our equity market outlook is that we believe U.S. stocks are overvalued, but
pockets of reasonable valuation exist within the market. Despite the recent
correction in technology stocks, the valuation differentials between the "haves"
and "have nots" remains extremely wide. The S&P Technology sector is still
valued at 50 times forward earnings. This is historically unprecedented and
remains amazing given the historic difficulty of developing a sustainable and
defendable, profitable franchise in such a rapidly evolving and volatile area of
the economy. Over one-third of the stocks in the fund trades for less than 11
times forward 12-month earnings, a huge discount to the S&P 500 Index which
trades at 25 times forward 12-month earnings. However, the catalyst to unwind
these valuation differences remains to be seen, and the possibility of rising
interest rates and increased inflation keeps a damper on "Old Economy"
valuations. Many "New Economy" investors believe that technology shares will be
immune to rising rates, but "Old Economy" companies still generate the majority
of capital spending. At some point, investors will recognize the disparities
between the market values and franchise values of many overlooked leading
companies and will gravitate back toward these names given their compelling
risk/reward profile. We believe that the fund is well positioned to take
advantage of this rotation when it occurs.
VALUE OF $10,000 INVESTED MAY 1, 2000
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AMERICAN LEADERS
S&P BARRA VALUE INDEX*** SERIES
<S> <C> <C>
5/1/00 $10,000 $10,000
00 $9,636 $9,801
</TABLE>
AMERICAN LEADERS SERIES TOTAL RETURN* SINCE MAY 1, 2000** -1.99%
Annual period ended June 30
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the
Series itself, without the expenses associated with the variable annuities or
variable universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged capitalization-weighted index of all the stocks in the
Standard & Poor's 500 that have low price-to-book ratios.
12
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY
AS OF 6/30/2000
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 35.1%
Insurance Carriers 10.9%
General Medical and Surgical Hospitals 7.7%
Depository Credit - Banking 6.6%
Aerospace Product and Parts Manufacturing 6.3%
Data Processing, Hosting, and Related Services 6.2%
Cash Equivalents/Receivables 5.7%
Support Activities for Mining 5.2%
Petroleum and Coal Products Manufacturing 4.7%
Nondepository Credit Banking 4.5%
Wired Telecommunications Carriers 3.7%
Pulp, Paper, and Paperboard Mills 3.4%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/2000
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
-------------------------------------------------------------------
<C> <S> <C>
1. Citigroup, Inc. 5.2%
2. HCA -- The Healthcare Company 4.0%
3. Boeing Co. 3.8%
4. AT&T Corp. 3.7%
5. Tenet Healthcare Corp. 3.7%
6. Conoco, Inc. Class A 3.6%
7. International Paper Co. 3.4%
8. Affiliated Computer Services, Inc. 3.4%
9. Ace Ltd. 3.3%
10. RadioShack Corp. (with rights) 3.2%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES
FOR THE PERIOD ENDED 6/30/2000
ADDITIONS: ELIMINATIONS:
Ace Ltd. Aetna, Inc. (with rights)
AT&T Corp. Alcoa, Inc.
Conoco, Inc. Class A American International Group, Inc.
Georgia-Pacific Group AT&T Corp. - Liberty Media Group
Honeywell International, Inc. Chase Manhattan Corp.
International Paper Co. Hewlett-Packard Co.
MGIC Investment Corp. Illinova Corp.
Radian Group, Inc. Reader's Digest Association, Inc. Class
RadioShack Corp. (with rights) A
UnumProvident Corp. S&P 500 Depositary Receipt
United HealthCare Corp.
FORTIS SERIES FUND: VALUE SERIES
DESIGNED FOR INVESTORS WHO LIKE TO DISCOVER QUALITY-GROWTH INVESTMENT
OPPORTUNITIES AT "BARGAIN" PRICES. THE PORTFOLIO MANAGERS CHOOSE STOCKS WITH
CURRENT PRICES THAT DO NOT NECESSARILY REFLECT THE STOCKS POTENTIAL VALUE.
For the six month period ended June 30, 2000, the S&P Barra Value Index declined
4.07% while the Fortis Value Series returned -0.02%. The portfolio outperformed
the index due to its relative underexposure in the technology and
telecommunications sectors, and its timely investments in undervalued stocks
with accelerating earnings growth.
The fund'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.
Coastal Corporation, UnitedHealth Group, and HCA -- The Healthcare Company were
among the fund's better performing stocks during the past six months. Recently,
we have added companies like Waste Management Incorporated and UnumProvident
Corporation that have exhibited the same traits we look for in a security, while
removing names such as Cigna Corporation that no longer fit our investment
criteria. We also have 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.
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. We continue to monitor the effects of interest rates and the
economy on the portfolio's holdings.
We remain focused on our investment philosophy and disciplines. We believe that
this strategy will provide solid 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&P BARRA***
VALUE INDEX VALUE SERIES
<S> <C> <C>
5/1/96 $10,000 $10,000
96 $10,102 $10,153
97 $13,482 $12,654
98 $16,869 $15,407
99 $19,657 $16,918
00 $18,656 $16,677
</TABLE>
<TABLE>
<CAPTION>
VALUE SERIES
AVERAGE ANNUAL TOTAL RETURN*
<S> <C>
SINCE
1 YEAR MAY 1, 1996**
-1.43% +13.07%
</TABLE>
Annual period ended June 30
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged capitalization-weighted index of all the stocks in the
Standard & Poor's 500 that have low price-to-book ratios.
13
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY
AS OF 6/30/2000
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 32.6%
Cash Equivalents/Receivables 12.2%
Semiconductor, Electronic Component Manufacturing 8.4%
Other Telecommunications 7.9%
Wired Telecommunications Carriers 7.2%
Support Activities for Mining 6.3%
Communications Equipment Manufacturing 6.0%
Pharmaceutical and Medicine Manufacturing 4.0%
Software Publishers 4.0%
Other Electrical Equipment and Component 3.9%
Computer and Peripheral Equipment Manufacturing 3.8%
Wireless Telecommunications Carriers 3.7%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/2000
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
-------------------------------------------------------------------
<C> <S> <C>
1. Corning, Inc. 3.0%
2. Tyco International Ltd. 2.5%
3. Nortel Networks Corp. 2.1%
4. Baker Hughes, Inc. 1.8%
5. AES Corp. 1.8%
6. Global Crossing Ltd. 1.5%
7. Pfizer, Inc. (with rights) 1.4%
8. VeriSign, Inc. 1.4%
9. RadioShack Corp. (with rights) 1.2%
10. Infinity Broadcasting Corp. Class A 1.2%
</TABLE>
FORTIS SERIES FUND: CAPITAL OPPORTUNITIES SERIES
(SUBADVISED BY MASSACHUSETTS FINANCIAL SERVICES)
THIS PORTFOLIO IS DESIGNED FOR INVESTORS WHO WANT CAPITAL APPRECIATION BY
INVESTING IN COMMON STOCKS AND EQUITY-RELATED SECURITIES, SUCH AS PREFERRED
STOCKS, CONVERTIBLE SECURITIES AND DEPOSITORY RECEIPTS.
For the two-month period ended June 30, 2000, the series provided a total return
of -1.05% compared to a 0.27% return for the S &P 500 Index. The S&P 500 is a
popular, unmanaged index of common stock total return performance.
The market has been extremely volatile over the period, driven mainly by
interest-rate concerns. Technology and telecommunications stocks led the market
between November and March, as interest rates climbed and investors abandoned
stocks in more economically sensitive sectors. Valuations in the technology and
telecommunications sectors reached what seemed like ridiculously high levels,
especially given that many companies showed no sign of being profitable anytime
soon. Investors finally got nervous and started selling technology and telecom
names, leading to volatility in the S&P 500 through much of the spring. This
shift caused some liquidity problems in the market -- especially among small-
and mid-cap names. As technology stocks slid, safe-haven sectors like drugs,
utilities, and food benefited. In May, we finally started seeing data that
suggested the economy was slowing. This lead to speculation that the Federal
Reserve Board (the Fed) might be nearly done raising interest rates, and
investors began moving back into technology stocks.
We stuck to our disciplined investment strategy, buying stocks with strong
earnings growth that were selling at reasonable prices and selling them when we
felt they were fully valued. We tried not to get caught up in the herd instinct
known as momentum buying. Instead, we took advantage of stock price weakness to
buy names that we liked. A good example is Corning. We believe this is a company
that is mostly known for its plasticware, when in fact it's the leading
manufacturer worldwide of the fiber used in the fiber-optic networks being built
for high-speed data and Internet transmission. Its stock price bounced around a
lot during the technology debacle. But earnings accelerated during the spring
and more investors began to understand the importance of Corning's fiber
business. By the end of May, the stock had more than doubled from its November
30 price.
During the recent volatility, we maintained a sizable stake in the
telecommunications and technology sectors but used the volatility to change our
holdings. We sold positions whose quality we were concerned about and trimmed
stocks that had held up well, including well-known names such as Oracle and
Cisco. We used the proceeds to buy stocks like Vodafone that we liked but hadn't
had big positions in because they had been too expensive. We also bought some
lesser-known names at what we thought were attractive prices. Among them were
ADC Telecom, a networking stock; Telesystem International Wireless, a small
cellular company with investments in Eastern Europe, Brazil, and Asia; and
Cabletron Systems, a mid-size company involved in both networking and high-end
consulting. We kept stocks like Nortel Networks -- a Canadian leader in the
optical business -- that we thought had strong earnings growth prospects not
fully reflected in their stock prices.
We continued to find some good buying opportunities overseas, including Samsung
Electronics, a South Korean supplier of cellular handsets and memory chips, and
NTL, which is is involved in acquiring cable firms. We also bought some
telecommunications stocks -- including Nextlink and Allegiance Telecom -- when
their stock prices nosedived this spring. Another area in which we did some
selective buying was financial services, where we bought holdings like AXA
Financial. We also purchased a stake in AES, a leading worldwide independent
power producer that's benefiting from the deregulation of electric power
generation. Many of these stocks have appreciated significantly since we
purchased them.
It's impossible to forecast the direction of interest rates or the market. We
could well be near the end of the Fed's increases -- which would bode well for
the market -- or we could continue to see volatility. Under either scenario,
we'll maintain our disciplined investment strategy, looking for earnings growth
at a reasonable price wherever we can find it. Our approach is to be patient and
not panic even when the market seems like a roller coaster.
VALUE OF $10,000 INVESTED MAY 1, 2000
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
CAPITAL OPPORTUNITIES
<S> <C> <C>
S & P 500 Index*** Series
5/1/00 $10,000 $10,000
2000 $10,027 $9,895
</TABLE>
CAPITAL OPPERTUNITIES SERIES TOTAL RETURN* SINCE MAY 1, 2000** -1.05%
Annual period ended June 30
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of 500 common stocks
14
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY
AS OF 6/30/2000
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 40.2%
Pharmaceutical and Medicine Manufacturing 14.1%
Other Telecommunications 6.5%
Newspaper, Periodical, Book and Database
Publisher 6.2%
Petroleum and Coal Products Manufacturing 5.9%
Insurance Carriers 5.3%
Wired Telecommunications Carriers 4.8%
Advertising and Related Services 4.3%
Semiconductor, Electronic Component Manufacturing 4.1%
Support Activities for Mining 3.6%
Soap, Cleaning Compound, Toilet Manufacturing 3.3%
Cash Equivalents/Receivables 1.7%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/2000
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
-------------------------------------------------------------------
<C> <S> <C>
1. SBC Communications, Inc. 3.2%
2. Dynegy, Inc. Class A 3.2%
3. BP Amoco plc ADR 2.9%
4. Biovail Corp., Conv. 6.75% 2.9%
5. American Home Products Corp. 2.8%
6. AES Corp. 2.2%
7. Enron Corp. 2.2%
8. Reader's Digest Association, Inc. Class A 2.2%
9. Texas Instruments, Inc. 2.2%
10. HCA -- The Healthcare Co. 2.1%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES
FOR THE PERIOD ENDED 6/30/2000
ADDITIONS: ELIMINATIONS:
Halliburton Alltel Corp.
MetLife, Inc. Cabletron Systems, Inc.
Nabisco Holdings Corp. Class A Chase Manhattan Corp.
Pfizer, Inc. (with rights) El Paso Energy Corp.
Philip Morris Companies, Inc. Electronic Data Systems Corp.
Qwest Commnunications Marshall & Illsley Corp.
International, Inc. Minnesota Mining and
Schering-Plough Corp. Manufacturing Co.
Schlumberger Ltd. Quaker Oats Co.
Seagram Ltd. Sysco Corp.
Young & Rubicam, Inc. United Parcel Service, Inc.
Class B
FORTIS SERIES FUND: GROWTH & INCOME SERIES
THIS PORTFOLIO OFFERS A SOLUTION TO INVESTORS WHO WANT TO COMBINE CONSERVATIVE
GROWTH OPPORTUNITIES WITH INCOME POTENTIAL. IT FOCUSES ON COMPANIES WITH
ATTRACTIVE CURRENT DIVIDEND YIELD GROWTH RELATIVE TO THE STANDARD AND POOR'S 500
STOCK INDEX. THE PORTFOLIO IS WELL DIVERSIFIED WITH EXPOSURE TO MANY SECTORS OF
THE ECONOMY.
The six month period ended June 30, 2000, proved to be a slightly negative
period of performance for the equity market. Strength early in the year,
particularly in technology stocks, gave way to the uncertainty over the effect
on the economy of continued increases in interest rates by the Federal Reserve.
Late in the period, some signs of a weaker economy signaled a possible end to
further increases in interest rates. However, further evidence of a slower
economy seems necessary to validate the end of rising interest rates.
For the six months ended June 30, 2000, the Growth & Income portfolio posted a
total return of 0.12%. This compares to a decrease of 0.43% for the S&P 500.
This portfolio is generally less volatile than the S&P 500 and also produces a
current yield above that of the S&P 500 index. The fund's overweight position in
energy contributed positively to performance results, benefiting nicely from a
surge in oil and gas prices during the period. One of the fund's largest
positions, Dynegy Incorporated, an oil and gas pipeline company, was among the
portfolio's top performers. Also aiding performance results was the fund's
relative underweight in consumer cyclicals, a sector that felt the brunt of the
Federal Reserve's interest rate hikes. Meanwhile, an overexposure in the
telecommunications and services sectors relative to the market hurt comparative
performance. Technology stocks have been somewhat underweighted in the portfolio
because they generally pay little or no dividends.
While the economy still remains robust and earnings prospects bright, higher
interest rates could affect the valuation levels of equities. The pace of
ongoing economic expansion is the main question facing investors in the period
ahead. Going forward, the investment approach for Growth & Income continues to
shift toward a greater emphasis on growth versus current income. In this period
of high valuation and rising interest rates, emphasis is being placed on 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>
05/02/94 10,000 10,000
94 9,912 9,942
95 12,492 11,448
96 15,746 14,430
97 21,203 18,403
98 27,603 22,587
99 33,891 24,991
2000 36,346 25,697
</TABLE>
<TABLE>
<CAPTION>
GROWTH & INCOME SERIES
AVERAGE ANNUAL TOTAL RETURN*
<S> <C> <C>
SINCE
1 YEAR 5 YEAR MAY 2, 1994**
+2.82% +17.55% +16.55%
</TABLE>
Annual period ended June 30
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the
Series itself, without the expenses associated with the variable annuities or
variable universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of 500 common stocks
15
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY AS OF 6/30/2000
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Capital Spending 35.4%
Finance 12.6%
Health Care 11.5%
Utilities 7.8%
Consumer Cyclical 7.5%
Basic Industry 6.3%
Energy & Related 6.0%
Consumer Staples 5.8%
Consumer Discretionary 3.7%
Cash Equivalents/Receivables 2.0%
Metal & Mining 0.8%
Transportation 0.6%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/2000
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
-------------------------------------------------------------------
<C> <S> <C>
1. General Electric Co. 4.1%
2. Intel Corp. 3.5%
3. Cisco Systems, Inc. 3.5%
4. Microsoft Corp. 3.3%
5. Pfizer, Inc. (with rights) 2.4%
6. Exxon Mobil Corp. 2.1%
7. Wal-Mart Stores, Inc. 2.0%
8. Oracle Corp. 1.9%
9. Citigroup, Inc. 1.6%
10. Nortel Networks Corp. 1.6%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES
FOR THE PERIOD ENDED 6/30/2000
ADDITIONS: ELIMINATIONS:
Altera Corp. Atlantic Richfield Co.
Harley-Davidson, Inc. Fleetwood Enterprises, Inc.
Linear Technology Corp. IKON Office Solutions, Inc.
Maxim Integrated Jostens, Inc.
Products, Inc. Milacron, Inc.
MedImmune, Inc. Mirage Resorts, Inc.
Mercury Interactive Corp. Republic New York Corp.
Novellus Systems, Inc. Service Corp. International
Sanmina Corp. Shared Medical Systems Corp.
Sapient Corp. Silicon Graphics, Inc.
VERITAS Software Corp.
FORTIS SERIES FUND: S&P 500 INDEX SERIES
(SUBADVISED BY DREYFUS)
THIS PORTFOLIO IS DESIGNED ESPECIALLY FOR INVESTORS WHO WANT TO EMULATE THE
TOTAL RETURN OF THE STANDARD & POOR'S 500 STOCK INDEX.
The fund closely tracked the return of the S&P 500 Index for the six-month
period ended June 30, 2000. The S&P 500 Index Series returned -0.72%, while the
S&P 500 Index returned -0.43%. The primary difference between the fund's
performance and the index's return is the effect of fund expenses. The S&P 500
Index had a negative return for the year to date while underperforming both
small capitalization stocks as represented by the S&P 600 SmallCap Index and
middle capitalization stocks as represented by the S&P 400 MidCap Index. The top
performing industries in the index were electronic defense, oil companies and
natural gas companies. The underperforming industries were metals, container
companies and hotels.
The Fortis S&P 500 Index Series is designed to passively replicate the large
capitalization U.S. equity market as represented by the S&P 500 Index. The
portfolio utilizes 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 cash flows.
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 $10,300 $10,279
97 $13,870 $13,716
98 $18,060 $17,760
99 $22,169 $21,706
00 $23,775 $23,146
</TABLE>
<TABLE>
<CAPTION>
S&P 500 INDEX SERIES
AVERAGE ANNUAL TOTAL RETURN*
<S> <C>
SINCE
1 YEAR MAY 1, 1996**
+6.64% +22.33%
</TABLE>
Annual period ended June 30
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the
Series itself, without the expenses associated with the variable annuities or
variable universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of 500 common stocks
16
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY
AS OF 6/30/2000
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 33.7%
Semiconductor, Electronic Component Manufacturing 13.0%
Pharmaceutical and Medicine Manufacturing 10.6%
Depository Credit - Banking 8.2%
Software Publishers 7.2%
Nondepository Credit Banking 5.2%
Communications Equipment Manufacturing 4.2%
Computer and Peripheral Equipment Manufacturing 4.1%
Insurance Carriers 3.9%
Petroleum and Coal Products Manufacturing 3.7%
Other Telecommunications 3.6%
Cash Equivalents/Receivables 2.6%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/2000
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
-------------------------------------------------------------------
<C> <S> <C>
1. Pfizer, Inc. (with rights) 4.6%
2. Citigroup, Inc. 2.9%
3. Cisco Systems, Inc. 2.6%
4. Intel Corp. 2.6%
5. Corning, Inc. 2.4%
6. Microsoft Corp. 2.4%
7. General Electric Co. 2.3%
8. Tyco International Ltd. 2.2%
9. Oracle Corp. 2.1%
10. Viacom, Inc. Class B 1.8%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES
FOR THE PERIOD ENDED 6/30/2000
ADDITIONS: ELIMINATIONS:
Ariba, Inc. Citrix Systems, Inc.
Baker Hughes, Inc. Halliburton Co.
CIGNA Corp. Honeywell International, Inc.
Medlmmune, Inc. Lucent Technologies, Inc.
Nortel Networks Corp. MediaOne Group, Inc.
Pharmacia Corp. Parametric Technology Corp.
PMC-Sierra, Inc. Procter & Gamble Co.
SDL, Inc. Sprint Corp.
Siebel Systems, Inc. Tribune Co.
Waters Corp. XL Capital Limited Class A
FORTIS SERIES FUND, INC.: 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
The six month period ended June 30, 2000, was a roller coaster ride in the
equity markets. The new year brought renewed concerns about economic
overheating, as first-quarter Gross Domestic Product (GDP) growth steamed ahead
at a 5.4% rate. At the same time, consumer demand rose 7% and business fixed
investment rose 17%. The Federal Reserve (the "Fed") indicated that it viewed
these growth levels as unsustainable and inflationary, and indeed, signs of
inflation became evident in labor costs and basic goods. The central bank
responded by raising the federal funds target rate three times in the first half
of 2000 by a total of 100 basis points (1%), the most recent move being a 50
basis-point hike on May 16. Since beginning its tightening program approximately
one year ago, the Fed has raised short-term rates by 175 basis points, to 6.5%.
Against this backdrop, equity market performance proved highly volatile, with
double-digit percentage gains and losses fairly common among individual stocks.
Investors paid particularly close attention to high-priced technology stocks,
shunning more speculative issues in favor of firms with reliable earnings. After
strong gains in 1999, telecommunications services companies have weakened this
year while telecom equipment makers posted mixed results. Technology stocks
started off the year with a bang, then corrected sharply in the second quarter
of 2000 as higher rates raised concerns about valuations. Nonetheless, many
technology securities have delivered excellent year-to-date results.
As the year wore on and rates rose higher, investors overall preferred more
moderately priced steady-growth stocks, such as consumer issues and
pharmaceuticals. The excitement surrounding the Human Genome Project also
increased interest in the biotechnology sector. In addition, lower-priced stocks
with positive prospects, notably in the energy and financials sectors, benefited
from renewed investor focus on valuation.
Your fund posted a modest gain of 6.96% in the first half of the year,
benefiting largely from the early performance of technology stocks and a spring
rally in pharmaceuticals. The portfolio fared significantly better than the
Standard & Poor's 500 Stock Index return of -0.43%, which struggled to a modest
loss during the period. Stock selection, particularly within the technology
area, helped account for our outperformance.
PORTFOLIO REVIEW
The fund's 26% stake in technology companies benefited greatly from a sustained
rally in the sector during the first three months of the year. Even though many
tech stocks weakened in the second quarter, particularly in April, the sector
still made the largest contribution to overall six month performance of the
fund. Our strategic focus on companies with long-term sustainable earnings
growth, strong management, and dominant market positions led us to companies
that held up well in a more discriminating environment. For example, the most
significant contribution came from Corning, a dominant producer of fiber optic
components.
With investors paying more attention to valuations, steady-growth companies
whose stocks appeared attractively priced advanced. A rally among leading
consumer nondurables benefited results: pharmaceuticals and other health care
companies performed especially well as a group, especially toward the end of the
half, although food and beverage producers also advanced. We initiated or added
to holdings in several pharmaceuticals during the period to take advantage of
their attractive growth prospects, and increased exposure to a dominant
biotechnology company, Genentech.
Financials and insurance buoyed performance, especially in May, when investors
felt more confident that the Fed would slow its interest rate hike campaign. In
addition, while the fund's energy holdings are relatively modest, comprising
only about 4% of assets, their strong gains contributed to fund performance. We
built up our position in oil service company Baker Hughes -- a stock that has
been quite successful since the beginning of the year -- which has benefited
from increased oil prices and increased capital expenditures among oil
producers.
Results were restrained by weak performance in three portfolio sectors. Despite
strength in consumer nondurables, retail firms such as The Gap and Home Depot
sagged as investors feared that higher interest rates would lead to slower
consumer spending. Software companies and other business services were also very
weak as a group, partly the result of the antitrust problems faced by Microsoft.
Finally, results among utility stocks were generally flat to negative, though
our position in the sector is a relatively modest 3% of assets.
OUTLOOK
Although the Fed seems to be slowing its program of tightening the money supply,
we think there is still a good possibility of further interest rate increases
this year, and equity market volatility may persist. As a result, we think it is
as important as ever to focus on individual companies with strong growth
prospects, excellent management, and dominant market positions. Fortunately, we
see significant potential in many sectors of the market, at prices we do not
think are unreasonable.
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
5/1/96 $10,000 $10,000
<S> <C> <C>
96 $10,300 $10,134
97 $13,870 $13,345
98 $18,060 $17,262
99 $22,169 $20,758
00 $23,775 $24,241
</TABLE>
<TABLE>
<CAPTION>
BLUE CHIP STOCK SERIES
AVERAGE ANNUAL TOTAL RETURN*
<S> <C>
SINCE
1 YEAR MAY 1, 1996**
+16.78% +23.70%
</TABLE>
Annual period ended June 30
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of 500 common stocks.
17
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY
AS OF 6/30/2000
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 31.5%
Semiconductor, Electronic Component Manufacturing 9.7%
Pharmaceutical and Medicine Manufacturing 9.4%
Cash Equivalents/Receivables 8.4%
Computer and Peripheral Equipment Manufacturing 8.0%
Communications Equipment Manufacturing 6.8%
Other Telecommunications 6.1%
Software Publishers 5.4%
Other Miscellaneous Manufacturing 4.7%
Depository Credit - Banking 4.1%
Motion Picture and Video Industries 3.0%
Securities and Commodity Contracts and Brokerage 2.9%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/2000
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
-------------------------------------------------------------------
<C> <S> <C>
1. General Electric Co. 4.7%
2. Cisco Systems, Inc. 4.1%
3. Pfizer, Inc. (with rights) 3.9%
4. Nortel Networks Corp. 2.9%
5. Oracle Corp. 2.8%
6. Intel Corp. 2.7%
7. Microsoft Corp. 2.6%
8. Tyco International Ltd. 2.4%
9. Sun Microsystems, Inc. 2.1%
10. Morgan Stanley Dean Witter & Co. 2.1%
</TABLE>
FORTIS SERIES FUND: BLUE CHIP STOCK SERIES II
(SUBADVISED BY AIM)
THIS PORTFOLIO IS DESIGNED FOR INVESTORS WHO WANT LONG-TERM GROWTH OF CAPITAL
WITH INCOME AS A SECONDARY OBJECTIVE BY INVESTING IN COMMON STOCKS OF BLUE CHIP
COMPANIES.
A variety of factors combined during the second quarter to shake investor
confidence and contribute to market volatility. Volatility was most pronounced
among high-flying technology stocks that saw their values decline sharply in
March and April and that traded within a relatively narrow range in May. Some
investors traded their high-tech holdings for more value-oriented stocks that
seemed to offer greater safety; others moved to cash as they waited to see
whether or not the Federal Reserve Board (the Fed) would continue its year-long
series of interest rate increases. In May, the Fed raised the federal funds rate
to 6.5%, its highest level in nine years. Since June 1999, the Fed has increased
interest rates six times for a total of 150 basis points (1.50%) in a
pre-emptive effort to keep inflation in check.
FUND OVERVIEW
Since inception on May 1, 2000, the Fortis Blue Chip Stock Series II returned
0.08% while its benchmark index, the S & P 500 Index, returned 0.27%. The
portfolio continued to be dominated by well-established, industry-leading
domestic large-cap technology companies. In addition, the fund continued to hold
stocks of health care, financial, broadcasting, retail and other companies.
While short-term volatility hurt the fund's performance during the second
quarter, we maintained our long-term strategy -- focusing on the stocks of
well-established, industry-leading companies with excellent earnings growth
prospects.
OUTLOOK
There are signs that Fed rate hikes are beginning to slow the economy, possibly
preventing the need for additional increases. Housing starts, new home sales,
new construction spending, retail sales, durable goods orders and business sales
have declined in recent months. Consumer and wholesale prices have remained
unchanged or have increased only slightly in recent months, and the nation's
jobless rate inched up in May. A continuing tight labor market and increasing
oil prices continue to concern the Fed, however, and could prompt one or two
additional rate increases.
Uncertainty over the Fed's future actions could perpetuate the volatility that
has characterized the markets in recent months. In such an environment,
investors would be well advised to take a long-term perspective on their
investments.
VALUE OF $10,000 INVESTED MAY 1, 2000
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
BLUE CHIP STOCK
S&P 500 INDEX*** SERIES II
<S> <C> <C>
5/1/00 $10,000 $10,000
00 $10,027 $10,008
</TABLE>
BLUE CHIP STOCK SERIES II TOTAL RETURN* SINCE MAY 1, 2000** +0.08%
Annual period ended June 30
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of 500 common stocks.
18
<PAGE>
PORTFOLIO DIVERSIFICATION BY COUNTRY AS OF 6/30/2000
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Japan 23.2%
United Kingdom 22.8%
France 13.5%
Germany 8.4%
Netherlands 6.8%
Other 5.7%
Switzerland 4.2%
Cash Equivalents/Receivables 3.8%
Spain 3.0%
Sweden 3.0%
Singapore 2.9%
Italy 2.7%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/2000
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
-------------------------------------------------------------------
<C> <S> <C>
1. Nisson Motor Co. Ltd. (Japan) 2.9%
2. Alcatel (France) 2.7%
3. TDK Corp. (Japan) 2.4%
4. Aventis S.A. (France) 2.2%
5. Total Fina Elf (France) 2.2%
6. Sony Corp. (Japan) 2.1%
7. Bayerische Hypo- und Vereinsbank AG (Germany) 2.0%
8. Canon, Inc. (Japan) 1.8%
9. Broken Hill Proprietary Co. Ltd. (Australia) 1.8%
10. Allianz AG (Germany) 1.8%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES
FOR THE PERIOD ENDED 6/30/2000
ADDITIONS: ELIMINATIONS:
Akzo Nobel N.V. Asahi Breweries Ltd.
Bayerische Hypo- und British American Tobacco plc
Vereinsbank AG DaimlerChrysler AG
British Telecommunications plc Granada Group plc
Fujitsu Ltd. Japan Tobacco, Inc.
Getronics N.V. Metro AG
Investor AB Class B National Westminster Bank plc
National Grid Group plc Nintendo Co. Ltd.
Sakura Bank Ltd. Royal & Sun Alliance Insurance
Sumitomo Electric Industries Group plc
Ltd. Unilever plc
Vodafone AirTouch plc
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 VALUE STOCKS OUTSIDE OF THE UNITED STATES.
The future of international markets in the new millennium appeared bright as
global equity markets ended the 20th century on an upswing. Investing in
companies outside the U.S. finally paid off in 1999 -- international equities
outperformed the S&P 500 for the first time since 1994.
However, the last six months has been volatile for equity markets around the
world. The International Stock Series has been effected by the monetary policy
tightening decision from the European Central Bank. Additionally, concerns over
global economic growth triggered the correction in the most highly valued
technology, media and telecom stocks. The portfolio with a return of -3.80%
outperformed the MSCI EAFE Index return of -3.95% for the six month period ended
June 30, 2000, as global equity markets experienced a dramatic rotation into
value after an extended period of growth dominance.
The portfolio did not undergo any significant changes over the last six months.
The investment philosophy remains based on value creation through bottom-up
stock selection. This style enables Lazard to add value by evaluating companies
the same way managements measure their own performance, by focusing on financial
productivity and the long-term sustainability of returns.
Lazard's investment team continues to find value opportunities in the
international arena. Several strategic purchases have been made over the last
six months including Fujitsu (Japan). At the time of purchase, the stock traded
at a discount to the sum of the parts, which includes the largest internet
service provider in Japan, yet we believe it is a financially productive company
with solid fundamentals. Bayerische Hypo Vereinsbank (Germany), the leading
retail banking network in Germany, was also added to the portfolio during the
first quarter of 2000. Other purchases included Portugal Telecom (Portugal) and
National Grid (U.K.).
Sales over the last year included Allied Zurich (U.K.), Telecom Italia (Italy)
and Argentariam (Spain) . Additionally, British American Tobacco (U.K.) was sold
despite its compelling valuation, as concerns over U.S. litigation and the
possible tightening of EU tobacco rules looms. National Westminster (U.K.) was
also removed from the portfolio when it reached its target valuation.
Lazard continues to seek out relative value opportunities among traditional
companies whose competitive position and strategic vision will enable them to
excel as we transition to the new economy. In addition, we will seek to take
advantage of the weakness in telecommunication, media and technology stocks to
invest in financially productive companies at attractive prices. The market's
shift in focus back to fundamentals should persist since, even in a new economy,
a company's true value is a function of the return it is able to generate on
shareholder's capital.
VALUE OF $10,000 INVESTED JANUARY 3, 1995
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
INTERNATIONAL
MSCI EAFE** STOCK SERIES
<S> <C> <C>
1/3/95 $10,000 $10,000
95 $10,276 $10,488
96 $11,676 $12,355
97 $13,213 $14,683
98 $14,057 $17,310
99 $15,171 $17,949
00 $17,817 $20,285
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL STOCK SERIES
AVERAGE ANNUAL TOTAL RETURN*
<S> <C> <C>
SINCE
1 YEAR 5 YEAR JANUARY 3, 1995***
+13.01% +14.10% +13.75%
</TABLE>
Annual period ended June 30
Past performance is not indicative of future
performance. Investment return and principal value
will fluctuate so that shares, when redeemed, may
be worth more or less than their original cost.
This represents the performance of the Series
itself, without the expenses associated with the
variable annuities or variable universal life
insurance policies.
* SEC defined total returns, including
reinvestment of all dividend and capital
gains distributions.
** An unmanaged index of the stocks of Europe,
Australia, and the Far East.
*** Date shares were first offered to the public.
19
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY AS OF 6/30/2000
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Capital Spending 32.6%
Health Care 12.9%
Finance 10.9%
Basic Industry 10.7%
Consumer Cyclical 10.3%
Energy & Related 9.4%
Utilities 8.3%
Consumer Staples 2.7%
Cash Equivalents/Receivables 1.3%
Metal & Mining 0.6%
Transportation 0.3%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/2000
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
-------------------------------------------------------------------
<C> <S> <C>
1. IVAX Corp. 2.3%
2. Intuit, Inc. 1.4%
3. Dollar Tree Stores, Inc. 1.4%
4. Dynegy, Inc. Class A 1.3%
5. MedImmune, Inc. 1.1%
6. NVIDIA Corp. 1.1%
7. BJ Services Co. 1.1%
8. Quanta Services, Inc. 1.1%
9. Chiron Corp. 1.1%
10. Sanmina Corp. 1.1%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES
FOR THE PERIOD ENDED 6/30/2000
ADDITIONS: ELIMINATIONS:
BJ Services Co. Altera Corp.
CIENA Corp. Biogen, Inc.
Dynegy, Inc. Class A Check Point Software
ENSCO International, Inc. Technologies Ltd.
Intuit, Inc. Linear Technology Corp.
IVAX Corp. Maxim Integrated
Microchip Technology, Inc. Products, Inc.
Noble Drilling Corp. Redback Networks, Inc.
NVIDIA Corp. Sabre Group Holdings, Inc.
Quanta Services, Inc. Transocean Sedco Forex, Inc.
VeriSign, Inc.
VERITAS Software Corp.
FORTIS SERIES FUND: MID CAP STOCK SERIES
(SUBADVISED BY DREYFUS)
THIS PORTFOLIO IS DESIGNED FOR INVESTORS WHO WISH TO INVEST IN MID
CAPITALIZATION COMPANIES THAT HAVE EXCELLENT POTENTIAL GROWTH CHARACTERISTICS
BUT ARE REASONABLY PRICED.
For the six months ended June 30, 2000, this portfolio had a return of 7.11%. In
contrast, the S&P MidCap 400, the portfolio benchmark, produced a return of
8.98% for the same period. Most of the underperformance versus the S&P MidCap
400 occurred during the first quarter. During the first two months of 2000, we
saw a continuation of the pattern seen in 1999 of investors focusing on a narrow
group of stocks with high valuations. Beginning in March, investors began
broadening their outlook, and returned to more traditional measures of security
valuation. This latter environment has historically been more favorable to both
our broadly diversified portfolio construction strategy and our quantitative
valuation process, and this was reflected in the second quarter performance.
Midcap stocks provided both strong absolute and relative performance during the
six months under review, a reversal of the previous market bias toward large
capitalization stocks. For the six months ended June 30, 2000, the S&P MidCap
400 Index had a total return of 8.98%, compared to the S&P 500 Index return of
-0.43%, and the S&P SmallCap 600 Index return of 6.89%. This recent trend in
middle capitalization performance has been so strong, that for the 12 months
ended June 30, 2000, the MidCap Index has outperformed both the S&P 500 and the
S&P SmallCap benchmarks.
Some of the individual holdings that positively influenced performance include
Waters Corporation (+135.49%), Convergys Corporation (+68.70%), and Allergan
(+50.16%). Waters provides equipment used by pharmaceutical companies for new
product research, while Convergys manufactures software used primarily by
telecommunications companies for billing. Allergan is a pharmaceutical company
that provides a wide array of eye-care products. Early in 2000 we also initiated
positions in two technology firms whose products facilitate migration of the
communications industry from traditional voice and data transmissions to fiber
optic transmission. These companies were Ciena Corporation and SDL,
Incorporated, and both stocks have more than doubled in value from the initial
purchase price. Another holding established in 2000 that contributed positively
to performance was Quanta Services. This company provides construction services
to the communications and cable industries by literally digging the hole and
laying the cable or fiber optic equipment used to provide voice, data, and cable
services.
We also dealt with a number of portfolio holdings that were members of the S&P
MidCap 400 Index that 'graduated' to the S&P 500. Some of these issues include
Altera Corporation, Linear Technology, Maxim Integrated Products, Siebel
Systems, and Veritas Software. Typically, when changes are announced by S&P, we
consider both the impact on the benchmark and the individual stock valuation. In
rebalancing this portfolio, we weigh both factors, keeping in mind our goal of
building a portfolio that has economic sector, capitalization, and overall risk
characteristics similar to the performance benchmark.
As always, we are committed to improving our quantitative valuation process
through research on new valuation factors and/or improved statistical
techniques. Also, we remain convinced that the middle capitalization sector of
the equity market continues to provide a number of dynamic investment
opportunities through all sectors of the economy.
VALUE OF $10,000 INVESTED MAY 1, 1998
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
S&P 400 MID CAP
INDEX *** MID CAP STOCK SERIES
<S> <C> <C>
5/1/98 $10,000 $10,000
98 $9,610 $9,490
99 $11,260 $10,111
00 $13,169 $11,542
</TABLE>
<TABLE>
<CAPTION>
MID CAP STOCK SERIES
AVERAGE ANNUAL TOTAL RETURN*
<S> <C>
SINCE
1 YEAR MAY 1, 1998**
+ 14.16% + 6.85%
</TABLE>
Annual period ended June 30
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of common stocks that measures the performance of the
mid-range sector of the U.S. stock market
20
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY
AS OF 6/30/2000
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 37.0%
Depository Credit - Banking 12.3%
Other Investment Pools and Funds 11.7%
Insurance Carriers 6.6%
Computer Systems Design and Related Services 5.6%
Cash Equivalents/Receivables 4.4%
Oil and Gas Extraction 4.7%
Residential Building Construction 4.7%
Clothing Stores 3.7%
Employment Services 3.5%
Software Publishers 3.0%
Real Estate Investment Trust (REIT) 2.8%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/2000
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
-------------------------------------------------------------------
<C> <S> <C>
1. Old Republic International Corp. 3.6%
2. Plum Creek Timber Co, Inc. 2.8%
3. Federal Signal Corp. 2.8%
4. AnnTaylor Stores Corp. 2.4%
5. Interim Services, Inc. 2.3%
6. Rayonier, Inc. 2.3%
7. Noble Affiliates, Inc. 2.2%
8. Key Energy Services, Inc. 2.2%
9. Manor Care, Inc. 2.2%
10. Banknorth Group, Inc. 2.1%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES
FOR THE PERIOD ENDED 6/30/2000
ADDITIONS: ELIMINATIONS:
Abercrombie & Fitch Co. Class A Evergreen Resources, Inc.
AnnTaylor Stores Corp. Flowserve Corp.
Briggs & Stratton Corp. Jostens, Inc.
CNF Transportation, Inc. Keystone Financial, Inc.
Horace Mann Educators Corp. Marine Drilling Companies, Inc.
La-Z-Boy Inc. Network Equipment Technologies, Inc.
Manor Care, Inc. Payless ShoeSource, Inc.
Noble Affiliates, Inc. Pittway Corp. Class A
RPM, Inc. REMEC, Inc.
Transaction Systems Architects, Sola International, Inc.
Inc.
FORTIS SERIES FUND: SMALL CAP VALUE SERIES
(SUBADVISED BY BERGER)
THIS PORTFOLIO IS DESIGNED FOR AGRESSIVE INVESTORS WHO WANT TO INVEST IN SMALL
COMPANY STOCKS THAT THE PORTFOLIO MANAGERS BELIEVE ARE SIGNIFICANTLY
"UNDERVALUED".
For the six-month period ended June 30, 2000, the Fortis Small Cap Value Series
remained stable with 3.39% return and the Russell 2000 Index gained 3.06%. Heavy
selling in the market on the last day of the quarter in some of our holdings
resulted in a 2% hit to the Fund's net asset value. It is worth noting, however,
that the Fund regained almost all of the prior day's losses on the very next
trading day.
Such large swings in stock prices were not uncommon in the period. As the
Federal Reserve Board carried out their campaign to fight inflation, the effects
of higher interest rates began to wear on corporate profits as a number of high
profile companies pre-announced disappointing earnings. The effects were felt
across a broad range of sectors from high-flying technology issues to old
economy industrial stocks. The result was a renewed emphasis on valuation that
caused the value style of investing to outperform its growth counterpart for the
quarter.
The results across sectors in the fund were as mixed as the market in general.
Financial and consumer stocks were among the casualties of higher interest
rates. Poor performers this period were CCB Financial, Republic Security
Financial and Abercrombie and Fitch.
Overall, energy continued to perform well. A significant spike in natural gas
prices presented us with the opportunity to reduce our energy exposure as price
targets for the companies we own were met. During the period we increased our
exposure in Noble Affiliates.
The REIT industry was another group that performed well during the quarter. In
addition to providing an 8% annualized dividend yield the stocks appreciated 10%
on average. Once again, we used this strength to pare back our exposure.
While we took advantage of the strength in energy and real estate to make
opportunistic sales, we were quick to redeploy the cash into groups that we call
"fallen growth stocks." New positions were initiated in companies such as Kronos
Inc., Micros Systems and Transaction System Architects Inc.
Looking ahead, we continue to believe that the Fund is well positioned to
benefit from a renewed focus on valuation. As the Federal Reserve nears the end
of their tightening program, we believe that a number of sectors are poised to
rebound as the market returns to more normal valuations. Furthermore, it is our
belief that the steep discounts in the small cap arena cannot continue and that
the inherent value in these companies must be realized. In the last year alone,
we have seen over 10% of the fund's holdings either bought out by larger
entities or taken private at significant premiums. We believe that so long as
these discounts persist, the pace of merger and acquisition activity will
continue to pick up. One way or another, we believe the underlying value will be
realized.
VALUE OF $10,000 INVESTED MAY 1, 1998
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
RUSSELL 2000*** SMALL CAP VALUE SERIES
5/1/98 10,000 10,000
<S> <C> <C>
98 9,491 9,640
99 9,629 10,993
2000 11,024 11,271
</TABLE>
<TABLE>
<CAPTION>
SMALL CAP VALUE SERIES
AVERAGE ANNUAL TOTAL RETURN*
<S> <C>
SINCE
1 YEAR MAY 1, 1998**
+ 2.53% + 5.68%
</TABLE>
Annual period ended June 30
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of common stocks of the smallest 2000 companies in the
Russell 3000 Index, which represents approximately 11% of the Russell 3000
Index.
21
<PAGE>
PORTFOLIO DIVERSIFICATION BY COUNTRY AS OF 6/30/2000
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
United States 42.6%
Japan 18.3%
Other 9.4%
Cash Equivalents/Receivables 7.3%
United Kingdom 5.2%
Sweden 2.8%
France 2.7%
Finland 2.6%
Netherlands 2.5%
Spain 2.5%
Israel 2.4%
Switzerland 1.7%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/2000
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
-------------------------------------------------------------------
<C> <S> <C>
1. Xilinx, Inc. (US) 3.6%
2. Vodafone AirTouch plc (United Kingdom) 3.5%
3. PE Corp - PE Biosystems Group (US) 3.2%
4. Cisco Systems, Inc. (US) 3.0%
5. Ericsson (L.M.) Telephone Co. Class B ADR (Sweden) 2.8%
6. Nokia Oyj (Finland) 2.6%
7. Tellabs, Inc. (US) 2.6%
8. Advantest Corp. (Japan) 2.2%
9. Trend Micro, Inc. (Japan) 2.2%
10. Teva Pharmaceutical Industries Ltd. ADR (Israel) 2.1%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES
FOR THE PERIOD ENDED 6/30/2000
ADDITIONS:. ELIMINATIONS:
AT&T Wireless Group Agile Software Corp.
Aurora Biosciences Corp. Alcoa, Inc.
Broadcom Corp. Class A Citrix Systems, Inc.
China Unicom Ltd. ADR Dixons Group plc
Chubb Corp.(with rights) East Japan Railway Co.
Cypress Semiconductor Corp. Hikari Tsushin, Inc.
Hutchison Whampoa Ltd. MediaOne Group, Inc.
Infineon Technologies AG Mondadori (Arnoldo) Editore
Nestle S.A. S.p.A.
Varian, Inc. Orange plc
Sykes Enterprises, Inc.
FORTIS SERIES FUND: GLOBAL GROWTH SERIES
SLIGHTLY MORE AGGRESSIVE GROWTH INVESTORS WHO WANT TO DIVERSIFY AND EXPAND THEIR
HORIZONS BEYOND THE UNITED STATES MAY WANT TO CONSIDER THIS HIGHLY DIVERSIFIED
PORTFOLIO.
During the six-month period ended June 30, 2000, the Global Growth
Series Portfolio had a total return of -2.35%, which compared to a -2.41% return
for the Morgan Stanley Capital International World Index. Numerous factors have
influenced returns so far in 2000. These include rising global interest rates,
weak currencies in Europe and Japan, and highly volatile global equity markets.
Returns were strong during the initial two months of 2000, however stock prices
peaked in early March for many growth oriented holdings. Investor uncertainty
has been focused on the strength of the global economy and the subsequent
pressures on inflation, interest rates and equity valuations. This uncertainty
caused stock prices to decline during the remainder of the period.
The Global Growth Series may invest in any country including the United States.
Our long term goal is to invest in the world's best positioned and best managed
growth companies. Our focus over the years has been in high growth segments of
the world's economy such as wireless communications, cable television,
semiconductor manufacturers, semiconductor capital equipment suppliers, and
companies which provide products that enable the build-up of the internet. We
have also invested in growth segments such as biotechnology, natural gas
suppliers and energy services. At the end of June 2000, the United States
represented 42.6% of the portfolio, while Japan represented 18.3%, Europe 24.8%,
and other nations 14.3%.
The outlook for the global economy is highly favorable. A synchronized global
recovery is currently occurring with strong growth in the United States, Europe,
and positive growth in Japan. This has helped the recoveries in the emerging
regions of the world. This stronger economic growth is resulting in some
inflationary pressures, especially in the United States and Europe. The Federal
Reserve Board in the United States and other central banks around the world have
responded with an increase in short-term interest rates over the past twelve
months in an effort to slow the economy to a more sustainable long term growth
rate. The increase in interest rates should result in slower economic activity
in the United States and Europe later in the year. The uncertainty regarding the
outlook for interest rates and economic growth will likely result in continued
volatility in the world's equity markets.
The longer-term outlook for investing in global equities remains favorable. The
world's economy is positioned to grow, the world's central banks are making an
effort to control inflation, and long term capital spending for new technologies
is in place. These factors should focus investors on growth oriented global
companies. Our fund historically has specialized in investing in the world's
best positioned growth companies and will continue to do so. Although increased
volatility is likely for equities, the long term potential remains positive.
VALUE OF $10,000 INVESTED MAY 1, 1992
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
MSCI WORLD INDEX*** GLOBAL GROWTH SERIES
<S> <C> <C>
05/01/92 10,000 10,000
92 10,053 9,967
93 11,805 11,996
94 13,076 12,002
95 14,543 14,808
96 17,305 19,668
97 21,252 21,027
98 24,964 24,289
99 28,977 25,878
00 32,609 36,108
</TABLE>
<TABLE>
<CAPTION>
GLOBAL GROWTH SERIES
AVERAGE ANNUAL TOTAL RETURN*
<S> <C> <C>
SINCE
1 YEAR 5 YEAR MAY 1, 1992**
+39.53% +19.51% +17.03%
</TABLE>
Annual period ended June 30
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the
Series itself, without the expenses associated with the variable annuities or
variable universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of the world's major equity markets in U.S. dollars,
weighted by stock market value.
22
<PAGE>
PORTFOLIO DIVERSIFICATION BY COUNTRY AS OF 6/30/2000
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
United States 39.8%
Japan 13.4%
United Kingdom 11.8%
France 7.1%
Other 6.6%
Netherlands 6.3%
Receivables/Cash Equivalents 3.5%
Sweden 3.1%
Canada 3.1%
Singapore 1.8%
Australia 1.8%
Finland 1.7%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/2000
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
-------------------------------------------------------------------
<C> <S> <C>
1. Computer Associates International, Inc. (US) 2.3%
2. Vodafone AirTouch plc (United Kingdom) 2.1%
3. NTT DoCoMo, Inc. (Japan) 1.9%
4. Hitachi Ltd. (Japan) 1.9%
5. Baush & Lomb, Inc. (US) 1.9%
6. Chugai Pharmaceutical Co., Ltd. (Japan) 1.8%
7. Canon, Inc. (Japan) 1.8%
8. Reliastar Financial Corp. (US) 1.7%
9. ProSieben Media AG (Germany) 1.7%
10. Helsingin Puhelin Oyj (Finland) 1.7%
</TABLE>
FORTIS SERIES FUND: GLOBAL EQUITY SERIES
(SUBADVISED BY MASSACHUSETTS FINANCIAL SERVICES)
THIS PORTFOLIO IS DESIGNED FOR INVESTORS WHO WANT CAPITAL APPRECIATION BY
INVESTING IN COMMON STOCKS AND EQUITY RELATED SECURITIES OF U.S. AND FOREIGN
(INCLUDING EMERGING MARKETS) ISSUERS.
For the two-month period ended June 30, 2000, the series provided a total return
of 1.67%. This compares to a 0.78% return for the series' benchmark, the Morgan
Stanley Capital International (MSCI) World Index. The MSCI Index is an unmanaged
market-capitalization-weighted total return index that measures the performance
of 23 developed-country global stock markets, including those of the United
States, Canada, Europe, Australia, New Zealand, and the Far East.
We feel our strategy of relatively broad sector diversification was a major
factor in helping us offer competitive performance in a difficult environment.
In Asia and Europe, as well as in the United States, we witnessed the same
market phenomena: high volatility and rotation between new-economy stocks, or
companies seen as being technology rich, and old-economy stocks, that is,
companies viewed as being technology poor and as having done business the same
way for a long time.
We also took advantage of market volatility to buy shares in what we believed
were fundamentally sound companies with depressed stock prices.
A factor that hurt performance, however, was the decline of the euro over the
period as the dollar strengthened. Since our results must always be converted
back into dollars, any profits we make on European equities are decreased if the
euro declines versus the dollar. Conversely, a rising euro would give an extra
boost to profits on our European holdings.
Utilities and communications has remained the largest sector in the portfolio.
This is actually a byproduct of our style of individual bottom-up stock picking,
rather than a top-down decision to overweight a particular sector. Utilities and
communications, particularly telecommunications, is simply the area in which we
have found the most companies with strong earnings growth prospects at
reasonable valuations -- as opposed to some other areas of TMT (technology,
media and telecommunications), where we feel valuations have gotten dangerously
high.
Although, as we mentioned, these holdings gave up some of their gains late in
the period, we still feel very positive about them as a group. Our focus has
been largely on wireless carriers and what are called alternative carriers.
These are companies that come into a market with new technology, such as
all-fiber-optic networks, and are able to undercut the incumbents' prices.
Cable & Wireless in the United Kingdom and Time Warner Telecom in the United
States are examples of alternative carriers. Major wireless carriers that we
hold include NTT Mobile Communications, the largest cellular company in Japan,
Sprint PCS in the United States, and Vodafone AirTouch in the United Kingdom.
The portfolio continued to benefit from research conducted firsthand by MFS
analysts around the globe. Fast Retailing is a stock that we think exemplifies
how our bottom-up Original Research-SM- may uncover new opportunities in
difficult markets. With rising unemployment and a weak economy, we would not
generally consider Japan to be a great environment in which to invest in a
retail company. But Fast Retailing is a chain of unisex casual clothing stores
that has broken out of the traditional Japanese retail mold. By cutting out
layers of middlemen, it has been able to undercut department store prices by as
much as 50% to 60%. However, until recently, the market's perception seemed to
be that the company's stock was already fully valued.
Our retail analyst in Tokyo had been following the stock for some time when he
urged us to invest in the company. The analyst had been visiting Fast Retailing
stores and seeing lines of customers stretching around the block. Conversations
with store managers confirmed that the company was experiencing phenomenal sales
growth. Further research led us to conclude that Fast Retailing's stock was
actually underpriced relative to future earnings. Subsequently, the market
appears to have arrived at a similar opinion, and our holding has appreciated
considerably.
On a cautionary note, looking to the period ahead we feel that valuations in the
markets are high, so investors should not expect overall returns to be what
they've been in the past. That said, we think the prospects for earnings growth
have actually improved over the past year for a majority of the companies in
which we're invested. Japan has moved from negative to positive earnings growth.
In much of the rest of Asia, we've seen continued and accelerating recovery from
the regional financial crisis of 1998. In Europe, our projections of average
annual earnings growth have increased from the 8%-10% range a year ago to
12%-15% for 2000, a rate we feel may be sustainable into next year. In the
United States, although the market seems somewhat concerned about rising
interest rates, we foresee a continued period of high earnings growth.
One factor in our positive outlook is the strong dollar. We talked about this
earlier as being, in one respect, a negative for the portfolio. But it is a
positive factor for overseas firms competing against dollar-based companies. In
the United States, for example, a strong dollar makes imported goods cheaper and
therefore more competitive. We also see the establishment of the euro zone as a
positive development. We believe it is propelling European companies into a
wider marketplace, forcing them to act more competitively and focus more on
delivering stock performance for shareholders. Other factors contributing to our
outlook for strong global earnings growth include continued deregulation in many
foreign marketplaces and industries, as well as ongoing restructuring in Europe
and Asia -- trends that echo earlier developments in the United States that
contributed strongly to our current economic boom.
VALUE OF $10,000 INVESTED MAY 1, 2000
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
MSCI WORLD INDEX*** GLOBAL EQUITY SERIES
<S> <C> <C>
05/01/00 10,000 10,000
00 10,078 10,167
</TABLE>
<TABLE>
<CAPTION>
GLOBAL EQUITY SERIES
<S> <C>
TOTAL RETURN*
SINCE
MAY 1, 2000**
+1.67%
</TABLE>
Annual period ended June 30
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the perfomance 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.
23
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY AS OF 6/30/2000
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 26.2%
Semiconductor, Electronic Component Manufacturing 12.3%
Pharmaceutical and Medicine Manufacturing 11.2%
Communications Equipment Manufacturing 9.4%
Nondepository Credit Banking 7.4%
Computer and Peripheral Equipment Manufacturing 6.9%
Depository Credit - Banking 5.1%
Other Telecommunications 5.1%
Software Publishers 4.7%
Motion Picture and Video Industries 4.6%
Industrial Machinery Manufacturing 4.4%
Cash Equivalents/Receivables 2.7%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/2000
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
-------------------------------------------------------------------
<C> <S> <C>
1. Pfizer, Inc. (with rights) 6.8%
2. Intel Corp. 6.0%
3. Tyco International Ltd. 4.6%
4. Nokia Oyj Corp. ADR 4.5%
5. Cisco Systems, Inc. 4.5%
6. Applied Materials, Inc. 4.4%
7. Citigroup, Inc. 3.8%
8. Dell Computer Corp. 3.6%
9. Schering-Plough Corp. 3.5%
10. Microsoft Corp. 3.4%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES
FOR THE PERIOD ENDED 6/30/2000
ADDITIONS: ELIMINATIONS:
AT&T Wireless Group Bristol-Myers Squibb Co.
BP Amoco plc ADR Ford Motor Co.
Corning, Inc Gannett Co., Inc.
Disney (Walt) Co. Gap, Inc.
E-Tek Dynamics, Inc. Kroger Co.
Micron Technology, Inc. Masco Corp.
Nortel Networks Corp. MCI WorldCom, Inc.
Pharmacia Corp. Merrill Lynch & Co., Inc.
Viacom, Inc. Class B Phillip Morris Companies, Inc.
Yahoo!,Inc. U.S. Bancorp
FORTIS SERIES FUND: LARGE CAP GROWTH SERIES
(SUBADVISED BY ALLIANCE)
THIS PORTFOLIO IS DESIGNED FOR INVESTORS WHO WANT TO INVEST IN LARGE
CAPITALIZATION, FAST GROWING COMPANIES.
PERFORMANCE REVIEW
During the six-month period ended June 30, 2000, the portfolio returned 1.76%
and outperformed the S&P 500 Index return of -0.43%. The stock market during
this period was characterized by extreme volatility and sector rotation as
investor sentiment vacillated between bullish and bearish reactions to company
specific earnings reports and incremental economic data regarding growth and
inflation. Strong corporate profit growth propelled the market higher through
mid-March despite the Federal Reserve's efforts to slow economic growth and
dampen the threat of inflation by raising interest rates. However, market
sentiment began to change in mid-March as investors pulled money out of
technology stocks in favor of beaten-down blue chip stocks. Technology stocks
continued to struggle during April and most of May leading the market lower. The
technology correction saw the NASDAQ fall just over 20% from its record March
high through the end of June. Despite the strong rebound during June led by
technology and healthcare, the market ended the first half with a modest loss.
The portfolio outperformed the S&P 500 Index during the first half of the year
due to strong stock selection across several industry groups. Technology, which
comprised 35%-40% of the portfolio, was among the best performing. Despite the
correction early in the second quarter, several of our largest technology
holdings gained over 40% during the six-month period. The continued revolution
in information technology propelled by the Internet and the proliferation of
wireless technologies fueled robust earnings growth for these companies.
Pharmaceutical stocks rebounded strongly this year benefiting from investors'
rotation into more defensive sectors of the market. Investors were drawn to the
stable earnings growth and attractive valuations offered by drug stocks. Pfizer,
a top five holding in the portfolio, significantly outperformed during the
period on the strength of its stellar growth prospects when combined with its
merger partner Warner Lambert. We believe that 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.
Despite the fact that financial services stocks struggled during this period as
investors' worried that higher interest rates would adversely impact earnings
growth and credit quality, two of the portfolio's top holdings, Citigroup and
Morgan Stanley Dean Witter, handily outperformed. Within consumer services,
broadcasting, cable and entertainment stocks had mixed performance as investors'
also worried that higher interest rates would adversely impact advertising
spending. Leading retailers generally posted negative returns as investors'
concerns that a slowdown in consumer spending would cause a deceleration in
earnings growth.
MARKET OUTLOOK
The portfolio remains broadly diversified with technology, communication
services, financials, healthcare and broadcasting, cable and entertainment the
areas of emphasis. Despite the length of the economic expansion and the Federal
Reserve's efforts to slow economic growth, corporate profit growth for most
companies remains strong. Furthermore, the correction in technology stocks that
saw the NASDAQ fall just over 20% from its record March high through the end of
June has had the beneficial effect of deflating the speculative bubble in the
stock market. While there is yet no conclusive evidence that the Federal
Reserve's attempts to slow economic growth and dampen inflation threats by
raising interest rates has been successful, the signs are encouraging. However,
until investors' are confident that the Fed has engineered a soft landing,
market sentiment is likely to vacillate with the economic data and volatility
will continue. We believe that in an environment of solid economic and corporate
profit growth with little pricing power, the industry dominant, high growth
companies in the portfolio will continue to outperform.
We attempted to construct the portfolio to outperform the S&P 500 Index by
focusing on high quality, industry dominant companies, which are growing their
earnings on average more than 20%. This compares favorably with the earnings
growth of the companies in the S&P 500 taken as a whole, which we believe will
be approximately 10%. The fundamental earnings power of the industry dominant
companies owned in the portfolio should help generate superior performance. 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.
We look forward to 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>
05/01/98 10,000 10,000
98 10,227 10,439
99 12,555 13,572
2000 13,464 15,355
</TABLE>
<TABLE>
<CAPTION>
LARGE CAP GROWTH SERIES
AVERAGE ANNUAL TOTAL RETURN*
<S> <C>
SINCE
1 YEAR MAY 1, 1998**
+ 13.14% + 21.90%
</TABLE>
Annual period ended June 30
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the
Series itself, without the expenses associated with the variable annuities or
variable universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of 500 common stocks
24
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY
AS OF 6/30/2000
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 33.0%
Semiconductor, Electronic Component Manufacturing 11.3%
Software Publishers 9.7%
Cash Equivalents/Receivables 8.9%
Pharmaceutical and Medicine Manufacturing 8.0%
Other Telecommunications 6.2%
Computer and Peripheral Equipment Manufacturing 5.0%
Computer Systems Design and Related Services 4.3%
Communications Equipment Manufacturing 4.2%
Insurance Carriers 3.2%
Support Activities for Mining 3.2%
Other Electrical Equipment and Component 3.0%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/2000
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
-------------------------------------------------------------------
<C> <S> <C>
1. Microsoft Corp. 3.0%
2. Cisco Systems, Inc. 2.8%
3. Nortel Networks Corp. 2.6%
4. Micron Technology, Inc. 2.5%
5. Intel Corp. 2.4%
6. Tyco International Ltd. 2.4%
7. VeriSign, Inc. 2.1%
8. Pfizer, Inc. (with rights) 2.0%
9. Corning, Inc. 1.8%
10. AES Corp. 1.8%
</TABLE>
FORTIS SERIES FUND: INVESTOR GROWTH SERIES
(SUBADVISED BY MASSACHUSETTS FINANCIAL SERVICES)
THIS PORTFOLIO IS DESIGNED TO PROVIDE LONG-TERM GROWTH OF CAPITAL AND FUTURE
INCOME RATHER THAN CURRENT INCOME BY INVESTING IN COMMON STOCKS AND SECURITIES
CONVERTIBLE INTO COMMON STOCKS.
For the two-month period ended June 30, 2000, the series provided a total return
of -0.38%, this compares to a 0.27% return over the same period for the series'
benchmark, the Standard & Poor's 500 Composite Index (the S&P 500). The S&P 500
is a popular, unmanaged index of common stock performance.
Over the past six months, we think the likelihood of a slowdown in corporate
earnings has risen with the Federal Reserve Board's (the Fed's) increases in
interest rates. This has led us to increase the portfolio's diversification into
sectors we believe may be less exposed to the economic cycle. Two examples are
health care and business services.
We increased our weighting in health care stocks mainly by adding pharmaceutical
holdings such as Pharmacia and Warner-Lambert. The portfolio profited handsomely
when Warner-Lambert's stock rose on the news of its pending acquisition by
Pfizer, which was completed in June, and Pfizer continues to be a significant
holding. Short term, we expect there will continue to be a lot of rhetoric out
of Washington regarding health care regulation, but in the long term we don't
think that will seriously impact what our research indicates are strong earnings
outlooks for our pharmaceutical holdings.
Business services companies provide services that enable larger companies to
become more efficient by downsizing and outsourcing. Two examples are Computer
Sciences, an information technology consulting firm, and Automatic Data
Processing, which we feel is the market leader in payroll processing. In
addition to their strong growth prospects, we think many business services
companies offer relatively predictable, consistent revenues, as much of their
work tends to come from long-term contracts.
We continue to have a bullish long-term outlook for the portfolio's technology
and telecommunications holdings, although in the short term we feel some of
these companies could be sensitive to an economic slowdown. A look at current
spending patterns around the world offers a reason for optimism. According to
our research, spending on information technology is increasing in every area of
the world, and in the United States spending this year is estimated to reach
nearly 5% of gross domestic product. By comparison, however, Europe will spend
about half of that figure, while Japan and other Asian countries will spend even
less. We believe that in the long term these foreign economies will need to
dramatically increase their technology spending in order to remain competitive
with the United States -- and that a significant portion of that spending may go
to companies in our portfolio that are already leaders of the communications and
technology revolution, such as Cisco, Nortel, Corning, and Intel.
In describing our overall investment style and strategy, two phrases we often
use are "sustainable competitive advantage" and "flexible and opportunistic."
What we try to find for the portfolio are good businesses selling at reasonable
valuations, and one of our definitions of a good business is one that exhibits a
sustainable competitive advantage. Often that's a large market share; we tend to
invest in businesses with very few competitors. A patented product is another
form of competitive advantage; an example would be a pharmaceutical company with
the most effective drug for a certain disease or condition. Lowest cost may be
another form of sustainable competitive advantage.
Micron Technology, which is one of our top-10 holdings, offers an example. We
believe the company has become a dominant global manufacturer of dynamic random
access memory (DRAM) computer chips, which are essential components of computer
hard drives, wireless phones, and other devices. According to our research,
Micron's market share was about 8% in 1997 and is expected to reach nearly 20%
this year; globally, it is one of the two lowest-cost producers. It is also the
only DRAM manufacturer that has added significant production capacity since
1996, by acquiring a chip factory from Texas Instruments. Currently, demand for
DRAM chips is outstripping supply; we feel this situation could continue for
some time and lead to dramatic price increases. So we believe Micron has a
sustainable competitive advantage as a result of being one of the lowest-cost
producers and having a dominant market share of a product experiencing high
demand.
Flexible and opportunistic are really two aspects of the same strategy. As
long-term investors, we try to buy stocks we believe we can hold for three years
or more. But we also recognize that the investing landscape changes daily and
has become increasingly volatile in recent years, due largely to the
instantaneous flow of large amounts of information. We try to be flexible and
take advantage of the opportunities that the market presents, in part by
purchasing stocks we believe have strong growth prospects over the long term but
are undervalued over the short term -- perhaps because of some negative
announcement or what we believe is a false rumor. Everything continues to be
driven by our Original Research-SM-; in many cases our analysts have identified
companies we would like to invest in when a drop in their stock price presents
us with an opportunity.
VALUE OF $10,000 INVESTED MAY 1, 2000
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
S & P 500 INDEX*** INVESTORS GROWTH SERIES
<S> <C> <C>
05/01/00 $10,000 $10,000
2000 $10,036 $9,962
</TABLE>
INVESTORS GROWTH SERIES TOTAL RETURN* SINCE MAY 1, 2000** -0.38%
Annual period ended June 30
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of 500 common stocks
25
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY
AS OF 6/30/2000
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 25.8%
Semiconductor, Electronic Component Manufacturing 15.5%
Pharmaceutical and Medicine Manufacturing 10.1%
Cash Equivalents/Receivables 8.9%
Software Publishers 7.4%
Support Activities for Mining 7.2%
Communications Equipment Manufacturing 6.6%
Wired Telecommunications Carriers 5.5%
Radio and Television Broadcasting 3.9%
Computer Systems Design and Related Services 3.2%
Electric Generation, Transmission and Distribution 3.0%
Other Electrical Equipment and Component 2.9%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/2000
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
-------------------------------------------------------------------
<C> <S> <C>
1. Calpine Corp. 3.0%
2. SDL, Inc. 2.5%
3. Amdocs Ltd. 2.2%
4. Redback Networks, Inc. 2.0%
5. CIENA Corp. 1.9%
6. MedImmune, Inc. 1.9%
7. Mercury Interactive Corp. 1.8%
8. Waters Corp. 1.8%
9. Univision Communications, Inc. Class A 1.8%
10. Comverse Technology, Inc. 1.8%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES
FOR THE PERIOD ENDED 6/30/2000
ADDITIONS: ELIMINATIONS:
Alpharma, Inc. Applied Micro Circuits Corp.
Biogen, Inc. Emmis Communications Corp. Class A
Dallas Semiconductor Corp. i2 Technologies, Inc.
Efficient Networks, Inc. Intertrust Technologies Corp.
EMCORE Corp. Mallinckrodt Group, Inc.
Extreme Networks, Inc. New Era of Networks, Inc. (with rights)
Intersil Holding Corp. Portal Software, Inc.
Quanta Services, Inc. QUALCOMM, Inc.
Titan Corp. SciQuest.com, Inc.
Virata Corp. USWeb Corp.
FORTIS SERIES FUND: GROWTH STOCK SERIES
THIS PORTFOLIO IS DESIGNED FOR INVESTORS WHO SEEK TO REWARD POTENTIAL ENTIRELY
THROUGH U.S. EXCHANGE LISTED STOCKS. IT INVESTS IN MEDIUM-SIZED GROWTH COMPANIES
THAT MOVED BEYOND THE VENTURE STAGE.
During the six-month period ended June 30, 2000, the Fortis Growth Stock
Series posted a 14.79% return versus the S&P Mid Cap 400, which posted an 8.98%
return. This index is the most relevant comparison for the Growth Fund, as the
fund's primary investment focus is mid capitalization stocks, typically those
with a market capitalization between $2 billion and $10 billion.
During the period under review the fund's outperformance was attributable to its
overweight position in energy stocks as well as selected technology stocks. The
fund currently has a slight overweight position in technology, where we continue
to find new and innovative companies especially in telecommunications
infrastructure. Stocks such as SDL Inc. (+161%), which supplies optical
components for telecommunication networks and Ciena (+191%), which develops and
manufactures fiber optic telecommunication systems 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 add to our health care
weighting favoring specialty pharmaceutical names such as Biovail and King
Pharmaceutical and equipment providers for genomic research such as Waters Corp.
Lastly, we continue to be underweighted in consumer cyclical and financial
services stocks.
Going forward, we expect the recent strong domestic economic growth to moderate
slightly as a result of the Federal Reserves recent interest rate hikes. We
expect inflation to remain low and interest rates stable. Under these conditions
we believe the stock market can move moderately higher from current levels.
While the valuation gap between large and mid cap growth stocks has narrowed
considerably, we feel that the superior earnings growth potential of mid cap
stocks positions them well going forward.
VALUE OF $10,000 INVESTED JULY 1, 1990
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
S&P 400 INDEX** GROWTH STOCK SERIES
<S> <C> <C>
07/01/90 $10,000 $10,000
91 $10,982 $10,750
92 $12,739 $12,453
93 $15,457 $14,791
94 $15,438 $13,885
95 $18,889 $18,030
96 $22,958 $21,510
97 $28,320 $24,105
98 $36,000 $29,317
99 $42,180 $31,696
2000 $49,332 $53,661
</TABLE>
<TABLE>
<CAPTION>
GROWTH STOCK SERIES
AVERAGE ANNUAL TOTAL RETURN*
<S> <C> <C>
1 YEAR 5 YEAR 10 YEAR
+69.30% +24.37% +18.29%
</TABLE>
Annual period ended June 30
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. This represents the performance of the Series
itself, without the expenses associated with the variable annuities or variable
universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** An unmanaged capitalization-weighted index that measures the performance of
the mid-range sector of the U. S. stock market.
26
<PAGE>
PORTFOLIO COMPOSITION BY INDUSTRY
AS OF 6/30/2000
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 28.4%
Semiconductor, Electronic Component Manufacturing 16.0%
Software Publishers 9.1%
Computer Systems Design and Related Services 8.9%
Pharmaceutical and Medicine Manufacturing 8.5%
Communications Equipment Manufacturing 6.8%
Cash Equivalents/Receivables 6.6%
Other Information Services 4.6%
Medical Equipment and Supplies Manufacturing 3.1%
Scientific Research and Development Services 2.8%
Health and Personal Care Stores 2.6%
Radio and Television Broadcasting 2.6%
</TABLE>
TOP 10 HOLDINGS AS OF 6/30/2000
<TABLE>
<CAPTION>
Percent of
Stocks Net Assets
-------------------------------------------------------------------
<C> <S> <C>
1. Micromuse, Inc. 2.4%
2. TriQuint Semiconductor, Inc. 2.0%
3. Art Technology Group, Inc. 2.0%
4. Turnstone Systems, Inc. 1.9%
5. REMEC, Inc. 1.9%
6. Exar Corp. 1.7%
7. Plexus Corp. 1.7%
8. Business Objects S.A. ADR 1.7%
9. Netro Corp. 1.7%
10. PolyMedica Corp. 1.6%
</TABLE>
TEN LARGEST PORTFOLIO CHANGES
FOR THE PERIOD ENDED 6/30/2000
ADDITIONS: ELIMINATIONS:
Aeroflex, Inc. Applied Micro Circuits Corp.
Applied Films Corp. Broadbase Software, Inc.
Cytyc Corp. Citadel Communications Corp.
Netro Corp. CuraGen Corp.
Newport Corp. Insight Enterprises, Inc.
Plexus Corp. iXL Enterprises, Inc.
REMEC, Inc. Open Market, Inc.
Tanox, Inc. Ortel Corp.
Turnstone Systems, Inc. Protein Design Labs, Inc.
WatchGuard Technologies, Inc. Proxicom, Inc.
FORTIS SERIES FUND: AGGRESSIVE GROWTH SERIES
DESIGNED ESPECIALLY FOR THE MOST AGGRESSIVE, LONG-TERM INVESTOR WHO BELIEVES IN
THE ENTREPRENEURIAL OPPORTUNITIES OF AMERICA. THIS PORTFOLIO INVESTS IN SMALLER,
EMERGING GROWTH COMPANIES THAT HAVE HIGH UNIT GROWTH RATES FOR THEIR PRODUCTS
OR SERVICES.
During the six-month period ended June 30, 2000, the fund significantly
outperformed both the Russell 2000 and the Russell 2000 growth indices -- the
widely used benchmarks for small capitalization portfolios. The Fund posted a
12.04% return during the period versus a 3.06% return for the Russell 2000 Index
and 1.22% for the Russell 2000 Growth Index.
The first half of 2000 was an extremely volatile period for small cap stocks.
However, the Russell 2000 outperformed the Russell 1000, which posted a 0.78%,
return and the S&P 500, which posted a -0.43% return.
The outperformance of the fund versus its benchmark is attributable to superior
stock selection, especially in technology and health care. Orchid Biosciences, a
designer, developer and supplier of genetic testing equipment was up 368%,
Newport Corp, designer and manufacture of fiber optic testing and measuring
equipment was up 496% and Art Technology Group, a designer and developer of
internet applications was up 335%. We continue to favor technology stocks
especially telecommunications infrastructure companies such as Turnstone Systems
and Netro Corp. In healthcare, we favor companies such as Arthrocare Corp, an
emerging orthopedic company and Pharmacyclics Inc, a leading biotechnology
company. Finally, we expect increased political advertisement spending to be a
supportive backdrop for radio broadcasting companies such as Radio One.
Going forward we expect small cap stocks to perform well, given the current
attractive relative valuations. We continue to expect moderating economic growth
and stable interest rates to support solid earnings growth for small cap stocks.
We are confident the fund is positioned to continue to outperform the market
going forward.
VALUE OF $10,000 INVESTED MAY 2, 1994
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
RUSSELL 2000*** AGGRESSIVE GROWTH SERIES
05/02/94 10,000 10,000
<S> <C> <C>
94 9,726 9,133
95 11,586 11,352
96 14,358 14,722
97 16,701 12,960
98 19,504 15,815
99 19,788 20,197
00 22,654 39,523
</TABLE>
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH SERIES
AVERAGE ANNUAL TOTAL RETURN*
<S> <C> <C>
SINCE
1 YEAR 5 YEAR MAY 2, 1994**
+95.68% +28.34% +24.98%
</TABLE>
Annual period ended June 30
Past performance is not indicative of future performance. Investment return
and principal value will fluctuate so that shares, when redeemed, may be
worth more or less than their original cost. This represents the performance
of the Series itself, without the expenses associated with the variable
annuities or variable universal life insurance policies.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions.
** Date shares were first offered to the public.
*** An unmanaged index of common stocks of the smallest 2000 companies in
the Russell 3000 Index, which represents approximately 11% of the
Russell 3000 Index.
27
<PAGE>
FORTIS SERIES FUND, INC.
FORTIS MONEY MARKET SERIES
Schedule of Investments
June 30, 2000 (Unaudited)
SHORT-TERM INVESTMENTS-99.98%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal Maturity & Poor's
Amount Yield Date Rating Value (a)
---------- ----- -------- ----------- -----------
<C> <S> <C> <C> <C> <C>
BEVERAGE MANUFACTURING-2.76%
$2,500,000 Anheuser Busch Co............................ 6.74% 09/11/00 A1 $ 2,466,896
-----------
CAPTIVE AUTO FINANCE -19.48%
4,400,000 DaimlerChrysler North America Holding........ 6.84% 08/24/00 A1 4,355,432
4,400,000 Ford Motor Credit Co......................... 6.69% 07/13/00 A1 4,389,593
4,400,000 General Motors Acceptance Corp............... 6.82% 08/14/00 A1 4,363,590
4,300,000 Toyota Motor Credit Corp. (e)................ 6.63% 07/14/00 A1+ 4,289,147
-----------
17,397,762
-----------
CAPTIVE EQUIPMENT FINANCE-4.57%
4,100,000 John Deere Capital Corp...................... 6.68% 07/24/00 A1 4,082,151
-----------
COMMERCIAL BANKING-4.65%
4,200,000 Deutsche Bank................................ 6.78% 09/06/00 A1+ 4,147,799
-----------
CONSUMER LENDING-18.41%
4,400,000 American Express Credit Corp................. 6.69% 07/11/00 A1 4,391,207
3,700,000 American General Finance Corp................ 6.71% 07/07/00 A1 3,695,280
4,400,000 CIT Group, Inc............................... 6.67% 07/25/00 A1 4,380,017
4,000,000 Prudential Funding Corp...................... 6.67% 08/02/00 A1 3,976,020
-----------
16,442,524
-----------
DEPOSITORY CREDIT-BANKING-20.87%
4,400,000 Banc One Corp................................ 6.71% 07/12/00 A1 4,390,379
3,500,000 First Union National Bank (d)................ 6.67% 05/16/01 A+ 3,500,000
4,400,000 Household Finance Corp....................... 6.70% 07/07/00 A1 4,394,396
1,850,263 U.S. Bank N.A. Money Market Variable Rate
Time Deposit............................... 6.42% 01/00/00 A1+ 1,850,263
3,000,000 Wells Fargo & Co............................. 6.67% 07/06/00 A1 2,996,740
1,500,000 Wells Fargo & Co............................. 6.72% 07/05/00 A1 1,498,629
-----------
18,630,407
-----------
ELECTRIC GENERATION, TRANSMISSION AND
DISTRIBUTION-14.85%
4,400,000 CSW Credit, Inc.............................. 6.09% 07/21/00 A1 4,383,240
4,400,000 Duke Energy Corp............................. 6.67% 07/05/00 A1 4,396,016
4,500,000 South Carolina Fuel Co....................... 6.68% 07/20/00 A1 4,483,625
-----------
13,262,881
-----------
OIL AND GAS EXTRACTION-4.58%
4,100,000 Texaco, Inc.................................. 6.64% 07/17/00 A1 4,087,396
-----------
SALES FINANCING-4.92%
4,400,000 General Electric Capital Corp................ 6.70% 07/10/00 A1+ 4,391,994
-----------
SECURITIES AND COMMODITY CONTRACTS AND
BROKERAGE-4.89%
4,400,000 Morgan Stanley Dean Witter................... 6.73% 08/08/00 A1 4,368,731
-----------
TOTAL INVESTMENTS IN SECURITIES (COST:
$89,278,541) (b)........................... $89,278,541
===========
</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
June 30, 2000.
(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 June 30, 2000, was $4,289,147, which represents
4.80% of total net assets.
28
<PAGE>
FORTIS SERIES FUND, INC.
U.S. GOVERNMENT SECURITIES SERIES
Schedule of Investments
June 30, 2000 (Unaudited)
U.S. GOVERNMENT SECURITIES-101.56%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Cost (a) Value (b)
----------- ------------ ------------
<C> <S> <C> <C>
FEDERAL HOME LOAN MORTGAGE CORPORATION -
0.91%
NOTES:
$1,250,000 5.00% 2004................................... $ 1,170,945 $ 1,171,159
------------ ------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -
45.90%
MORTGAGE BACKED SECURITIES:
1,673,335 5.89% 2008................................... 1,477,957 1,535,482
8,585,374 6.00% 2013-2029.............................. 8,464,237 7,974,332
985,655 6.01% 2009................................... 1,003,366 910,225
1,901,244 6.20% 2006................................... 1,906,444 1,806,840
773,406 6.36% 2008................................... 772,400 733,575
10,592,864 6.50% 2013-2029.............................. 10,264,431 10,124,292
2,523,391 6.52% 2008................................... 2,391,925 2,414,577
1,285,450 6.63% 2005................................... 1,314,066 1,245,372
26,706,884 7.00% 2011-2030 (d).......................... 25,693,651 25,782,058
1,655,803 7.50% 2023................................... 1,703,925 1,633,019
102,823 8.50% 2017................................... 105,016 104,764
66,619 9.00% 2020-2021.............................. 66,491 68,596
391,171 9.75% 2020................................... 421,976 412,059
------------ ------------
55,585,885 54,745,191
------------ ------------
NOTES:
2,880,000 6.50% 2004................................... 2,827,542 2,824,145
1,250,000 7.25% 2010................................... 1,255,480 1,260,205
------------ ------------
4,083,022 4,084,350
------------ ------------
TOTAL FEDERAL NATIONAL MORTGAGE
ASSOCIATION................................ 59,668,907 58,829,541
------------ ------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -
9.06%
MORTGAGE BACKED SECURITIES:
4,800,000 7.00% 2030 (d)............................... 4,644,750 4,665,000
4,787,349 7.50% 2027................................... 4,818,562 4,756,528
955,467 9.00% 2020................................... 1,000,851 987,107
1,171,857 9.50% 2018-2021.............................. 1,213,355 1,204,914
------------ ------------
TOTAL GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION................................ 11,677,518 11,613,549
------------ ------------
OTHER DIRECT FEDERAL OBLIGATIONS - 17.59%
FEDERAL HOME LOAN BANK:
7,895,000 7.31% 2004................................... 7,908,668 7,964,200
------------ ------------
TENNESSEE VALLEY AUTHORITY :
15,000,000 6.375% 2005.................................. 14,576,972 14,580,945
------------ ------------
TOTAL OTHER DIRECT FEDERAL OBLIGATIONS....... 22,485,640 22,545,145
------------ ------------
U.S. TREASURY SECURITIES - 28.10%
NOTES:
3,179,040 3.625% 2008 Inflation-protection (e)......... 2,973,868 3,082,677
1,526,310 4.25% 2010 Inflation-protection (e).......... 1,546,337 1,548,728
6,500,000 5.00% 2001................................... 6,428,672 6,422,813
4,790,000 5.50% 2003................................... 4,729,836 4,682,225
1,500,000 6.125% 2001.................................. 1,490,289 1,491,563
------------ ------------
17,169,002 17,228,006
------------ ------------
</TABLE>
29
<PAGE>
FORTIS SERIES FUND, INC.
U.S. GOVERNMENT SECURITIES SERIES (CONTINUED)
Schedule of Investments
June 30, 2000 (Unaudited)
U.S. GOVERNMENT SECURITIES-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Cost (a) Value (b)
----------- ------------ ------------
<C> <S> <C> <C>
BONDS:
$ 500,000 6.125% 2029.................................. $ 502,025 $ 505,312
2,100,000 8.00% 2021................................... 2,453,498 2,534,437
4,590,000 8.125% 2021.................................. 5,912,626 5,588,325
2,700,000 8.75% 2017................................... 3,408,100 3,393,562
5,500,000 10.375% 2012................................. 6,628,907 6,768,438
------------ ------------
18,905,156 18,790,074
------------ ------------
TOTAL U.S. TREASURY SECURITIES............... 36,074,158 36,018,080
------------ ------------
TOTAL U.S. GOVERNMENT SECURITIES............. $131,077,168 $130,177,474
============ ============
</TABLE>
SHORT-TERM INVESTMENTS-8.98%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (b)
---------- ------------
<C> <S> <C>
CONSUMER LENDING - 4.25%
$5,447,000 Associates Corp. Master Variable Rate Note,
Current rate -- 6.53%...................... $ 5,447,000
------------
DEPOSITORY CREDIT-BANKING-4.73%
6,063,581 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 6.42%........ 6,063,580
------------
TOTAL SHORT-TERM INVESTMENTS................. 11,510,580
------------
TOTAL INVESTMENTS IN SECURITIES
(COST: $142,587,748) (a)................... $141,688,054
============
</TABLE>
(a) At June 30, 2000, the cost of securities for federal income tax purposes
was $142,774,960 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation.......................................... $ 599,083
Unrealized depreciation.......................................... (1,685,989)
------------------------------------------------------------------------------
Net unrealized depreciation...................................... $(1,086,906)
------------------------------------------------------------------------------
</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 cost of securities purchased on a when-issued basis at June 30, 2000,
was $14,318,813.
(e) 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.
30
<PAGE>
FORTIS SERIES FUND, INC.
DIVERSIFIED INCOME SERIES
Schedule of Investments
June 30, 2000 (Unaudited)
ASSET BACKED SECURITIES-8.64%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
---------- ----------- ----------- -----------
<C> <S> <C> <C> <C>
CAPTIVE AUTO FINANCE-0.03%
$ 24,452 Fifth Third Auto Grantor Trust, 6.70%
Ser 1996-B Class B 3-15-2002............... A $ 24,446 $ 24,425
----------- -----------
CAPTIVE RETAIL FINANCE-0.51%
500,000 Sears Credit Account Master Trust, 6.40%
Ser 1997-1 Class B 7-16-2007............... A 485,880 487,515
----------- -----------
COMMERCIAL BANKING-4.30%
1,400,000 Merrill Lynch Mortgage Investors, Inc., 7.42%
Ser 1996-C1 Class B 4-25-2028.............. AA 1,366,044 1,384,894
1,000,000 Midland Realty Acceptance Corp., 7.73%
Variable Rate Ser 1996-C1 Class B
8-25-2028.................................. AA 1,009,680 1,001,804
1,650,000 Mortgage Capital Funding, Inc., 7.90%
Ser 1996-MC1 Class B 2-15-2006............. AA+ 1,661,451 1,686,597
----------- -----------
4,037,175 4,073,295
----------- -----------
HOME IMPROVEMENT FINANCE-0.79%
750,000 Money Store Home Improvement Trust, 7.41%
Ser 1997-1 Class M1 5-15-2017.............. AA 752,821 743,610
----------- -----------
MANUFACTURED HOME FINANCE-1.08%
1,122,350 Green Tree Financial Corp., 7.20% Ser 1993-4
Class B1 1-15-2019......................... Baa3* 1,114,898 1,026,254
----------- -----------
MULTI-FAMILY LOANS-1.93%
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 1,499,977
384,470 Fund America Structured Transactions, L.P.,
Collateralized Note, 8.50% Ser 1996-1
Class A Principal Only 10-25-2030 (f)
(h)........................................ Baa3* 287,657 322,835
----------- -----------
1,761,407 1,822,812
----------- -----------
TOTAL ASSET BACKED SECURITIES................ $8,176,627 $ 8,177,911
=========== ===========
</TABLE>
CORPORATE BONDS-INVESTMENT GRADE-47.69%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
---------- ----------- ----------- -----------
<C> <S> <C> <C> <C>
AUTOMOTIVE EQUIPMENT RENTAL AND LEASING-0.49%
$ 500,000 Ryder System, Inc., 6.60% Note 11-15-2005.... BBB+ $ 499,863 $ 461,424
----------- -----------
CABLE AND OTHER SUBSCRIPTION
PROGRAMMING-1.08%
1,000,000 Comcast Cable Communications, Inc., 8.50%
Note 5-1-2027 (with rights)................ BBB 998,336 1,017,941
----------- -----------
CAPTIVE AUTO FINANCE -2.09%
1,000,000 Ford Motor Co., 6.375% Deb 2-1-2029.......... A 928,892 816,214
750,000 General Motors Acceptance Corp., 6.15% Bond
4-5-2007................................... A 747,786 684,955
500,000 Toyota Motor Credit, 5.625% Global
Note 11-13-2003............................ AAA 499,427 478,065
----------- -----------
2,176,105 1,979,234
----------- -----------
COMMERCIAL BANKING-2.90%
500,000 Keycorp Capital II, 6.875% Bond 3-17-2029.... BBB 494,752 391,459
1,356,000 Mellon Financial Co., 6.375% Sub
Note 2-15-2010............................. A 1,261,702 1,222,604
750,000 National City Corp., 6.875% Sub
Note 5-15-2019............................. A- 748,717 642,994
500,000 St. Paul Bancorp, Inc., 7.125% Sr
Note 2-15-2004............................. BBB 498,661 484,083
----------- -----------
3,003,832 2,741,140
----------- -----------
CONSUMER LENDING-0.78%
750,000 CIT Group, Inc., 7.375% Note 3-15-2003....... A+ 749,275 740,206
----------- -----------
DEPARTMENT STORES-0.70%
750,000 Federated Department Stores, 6.30%
Note 4-1-2009.............................. BBB+ 748,149 666,506
----------- -----------
ELECTRIC GENERATION, TRANSMISSION AND
DISTRIBUTION-3.26%
500,000 Duke Capital Corp., 8.00% Sr
Note 10-1-2019............................. A 506,677 503,460
1,500,000 Empresa Nacional de Electricidad S.A., 7.325%
Yankee Bond 2-1-2037....................... A- 1,500,000 1,335,009
1,250,000 TXU Electric Capital V, 8.175% Deb
1-30-2037.................................. BBB- 1,250,000 1,248,291
----------- -----------
3,256,677 3,086,760
----------- -----------
FOREIGN GOVERNMENTS-2.30%
500,000 British Columbia (Province of), 6.50% Yankee
Bond 1-15-2026............................. AA- 511,526 442,676
500,000 Korea (Republic of), 8.875% Global Bond
4-15-2008.................................. BBB 524,636 518,125
</TABLE>
31
<PAGE>
FORTIS SERIES FUND, INC.
DIVERSIFIED INCOME SERIES (CONTINUED)
Schedule of Investments
June 30, 2000 (Unaudited)
CORPORATE BONDS-INVESTMENT GRADE-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
---------- ----------- ----------- -----------
<C> <S> <C> <C> <C>
$1,250,000 Poland (Republic of), 7.125% Yankee
Note 7-1-2004.............................. BBB+ $1,245,982 $ 1,215,625
----------- -----------
2,282,144 2,176,426
----------- -----------
FOREIGN GOVERNMENTS-SUPRA-NATIONAL-1.03%
1,000,000 Corp Andina de Fomento, 7.10% Yankee Bond
2-1-2003................................... A 999,718 976,233
----------- -----------
GROCERY AND RELATED PRODUCT WHOLESALERS-0.46%
500,000 Sysco Corp., 6.50% Deb 8-1-2028.............. AA- 498,460 437,520
----------- -----------
GROCERY STORES-0.51%
500,000 Fred Meyer, Inc., 7.45% Sub Note 3-1-2008.... BBB- 528,273 478,209
----------- -----------
INSURANCE CARRIERS-1.75%
1,250,000 Prudential Insurance Co., 6.375% Sr
Note 7-23-2006 (e)......................... A+ 1,245,561 1,155,214
500,000 ReliaStar Financial Corp., 8.00%
Note 10-30-2006............................ A 498,338 504,291
----------- -----------
1,743,899 1,659,505
----------- -----------
INTERNATIONAL TRADE FINANCING (FOREIGN
BANKS)-0.74%
750,000 Bank Austria AG, 7.25% Sub Note 2-15-2017
(f)........................................ AA+ 748,698 696,452
----------- -----------
LUMBER AND OTHER CONSTRUCTION MATERIALS
WHOLESALER-0.48%
500,000 Georgia-Pacific Group, 7.75%
Note 11-15-2029............................ BBB- 466,899 454,718
----------- -----------
MANUFACTURING-BASIC CHEMICAL -1.03%
500,000 Dupont EI de Nemours Co., 6.875%
Note 10-15-2009............................ AA- 493,851 486,265
500,000 Equistar Chemicals, L.P., 8.75% Sr
Note 2-15-2009............................. BBB- 522,921 488,733
----------- -----------
1,016,772 974,998
----------- -----------
MANUFACTURING-COMMUNICATIONS EQUIPMENT -0.70%
750,000 Lucent Technologies, Inc., 6.45% Deb
3-15-2029.................................. A 746,018 662,407
----------- -----------
MANUFACTURING-MOTOR VEHICLE PARTS -1.05%
1,000,000 TRW, Inc., 6.45% Note 6-15-2001.............. BBB 999,955 990,729
----------- -----------
MANUFACTURING-PETROLEUM AND COAL PRODUCTS
-1.51%
1,500,000 Tosco Corp., 7.80% Deb 1-1-2027.............. BBB 1,498,377 1,429,197
----------- -----------
MANUFACTURING-SEMICONDUCTOR, ELECTRONIC
COMPONENT -0.90%
1,000,000 Tyco International Group S.A., 6.875% Yankee
Bond 1-15-2029............................. A- 856,393 855,130
----------- -----------
MANUFACTURING-SOAP, CLEANING COMPOUND, TOILET
-1.04%
1,000,000 Procter & Gamble Co., 6.60% Deb 12-15-2004... AA 998,441 982,621
----------- -----------
MILLS-PULP, PAPER AND PAPERBOARD -0.52%
500,000 Fort James Corp., 6.50% Sr Note 9-15-2002.... BBB- 499,705 487,970
----------- -----------
MOTION PICTURE AND VIDEO INDUSTRIES-2.12%
1,000,000 News America Holdings, 8.875% Deb
4-26-2023.................................. BBB- 993,068 1,024,821
1,000,000 Westinghouse Electric Corp., 7.875% Deb
9-1-2023................................... BBB+ 1,103,300 977,699
----------- -----------
2,096,368 2,002,520
----------- -----------
NATURAL GAS DISTRIBUTION-0.46%
500,000 Enron Corp., 6.95% Note 7-15-2028............ BBB+ 452,046 439,709
----------- -----------
NAVIGATIONAL, MEASURING AND CONTROL
INSTRUMENTS-1.38%
500,000 Lockheed Martin Corp., 7.65% Deb 5-1-2016.... BBB- 502,653 472,971
1,000,000 Raytheon Corp., 6.40% Deb 12-15-2018......... BBB- 827,656 828,428
----------- -----------
1,330,309 1,301,399
----------- -----------
OIL AND GAS EXTRACTION-1.55%
1,000,000 Anadarko Petroleum Corp., 8.25% Deb
11-15-2001................................. BBB+ 1,021,988 1,014,308
500,000 Conoco, Inc., 6.95% Sr Note 4-15-2029........ A- 468,951 455,687
----------- -----------
1,490,939 1,469,995
----------- -----------
PIPELINE TRANSPORTATION OF NATURAL GAS-3.10%
1,500,000 Coastal Corp., 7.42% Note 2-15-2037.......... BBB 1,427,778 1,360,995
750,000 NGC Corp. Capital Trust, 8.316% Sub Deb
6-1-2027................................... BBB- 750,000 626,994
1,000,000 Tennessee Gas Pipeline, 7.50% Deb 4-1-2017... BBB+ 985,295 949,584
----------- -----------
3,163,073 2,937,573
----------- -----------
RADIO AND TELEVISION BROADCASTING-0.97%
1,000,000 Liberty Media Group, Inc., 8.25% Deb
2-1-2030................................... BBB- 992,017 918,263
----------- -----------
</TABLE>
32
<PAGE>
CORPORATE BONDS-INVESTMENT GRADE-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
---------- ----------- ----------- -----------
<C> <S> <C> <C> <C>
SALES FINANCING-0.52%
$ 500,000 Textron Financial Corp., 7.125%
Note 12-9-2004............................. A- $ 497,720 $ 494,985
----------- -----------
SCHEDULED AIR TRANSPORTATION-1.49%
1,300,000 Delta Air Lines, 10.50% Pass Thru Certificate
4-30-2016.................................. BBB 1,563,533 1,408,277
----------- -----------
SECURITIES AND COMMODITY CONTRACTS AND
BROKERAGE-3.54%
1,500,000 Bear Stearns Capital Trust, 7.00% Variable
Rate Note 1-15-2027........................ BBB 1,499,164 1,458,910
500,000 Donaldson, Lufkin & Jenrette, 6.50%
Note 6-1-2008.............................. A- 498,252 449,230
1,000,000 Lehman Brothers Holdings, 7.875%
Note 11-1-2009............................. A 1,021,190 971,113
500,000 Paine Webber Group, Inc., 7.625%
Note 12-1-2009............................. BBB+ 498,277 472,108
----------- -----------
3,516,883 3,351,361
----------- -----------
SUPPORT ACTIVITIES FOR MINING-0.44%
500,000 Petroleum Geo-Services ASA, 7.125% Yankee Sr
Note 3-30-2028............................. BBB 498,584 413,646
----------- -----------
TELECOMMUNICATIONS-OTHER-0.25%
250,000 Telecomunicaciones de Puerto Rico, 6.65% Sub
Note 5-15-2006............................. BBB 249,920 236,574
----------- -----------
TELECOMMUNICATIONS CARRIERS-WIRED-5.08%
1,000,000 360 Communications ALLTEL Corp., 7.50% Sr
Note 3-1-2006.............................. A 998,485 989,842
2,000,000 GTE Corp., 7.51% Note 4-1-2009............... A+ 1,986,835 1,969,160
500,000 Sprint Capital Corp., 5.875% Deb 5-1-2004.... BBB+ 498,026 471,037
750,000 US West Capital Funding, Inc., 6.50% Bond
11-15-2018................................. A- 745,875 635,841
750,000 US West Communications, 7.20%
Note 11-1-2004............................. A 751,485 738,232
----------- -----------
4,980,706 4,804,112
----------- -----------
TELECOMMUNICATIONS CARRIERS-WIRELESS-1.47%
1,500,000 Century Telephone Enterprises, Inc., 6.15% Sr
Note 1-15-2005............................. BBB+ 1,498,414 1,390,218
----------- -----------
TOTAL CORPORATE BONDS - INVESTMENT GRADE..... $47,646,501 $45,123,958
=========== ===========
</TABLE>
CORPORATE BONDS-NON-INVESTMENT GRADE-21.50%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
---------- ----------- ----------- -----------
<C> <S> <C> <C> <C>
CABLE AND OTHER PROGRAM DISTRIBUTION-1.99%
$ 775,000 Charter Communications Holdings LLC, 9.92% Sr
Disc Note 4-1-2011 (Zero coupon through
4-1-2004,
thereafter 9.92%) (g)...................... B+ $ 543,545 $ 439,813
750,000 Mediacom LLC/Capital Corp., 7.875% Sr
Note 2-15-2011............................. B+ 740,202 656,250
500,000 United International Holdings, Inc., 10.75%
Sr Disc Note Ser B 2-15-2008 (Zero coupon
through 2-15-2003, thereafter 10.75%)
(g)........................................ B- 385,364 350,000
500,000 United Pan-Europe Communications N.V., 11.25%
Sr Note 11-1-2009.......................... B 496,455 440,000
----------- -----------
2,165,566 1,886,063
----------- -----------
CABLE AND OTHER SUBSCRIPTION
PROGRAMMING-1.86%
750,000 Adelphia Communications Corp., 9.375% Sr
Note 11-15-2009............................ B+ 744,263 693,750
1,000,000 CSC Holdings, Inc., 10.50% Sr Sub Deb
5-15-2016.................................. BB- 1,013,940 1,062,500
----------- -----------
1,758,203 1,756,250
----------- -----------
ELECTRIC GENERATION, TRANSMISSION AND
DISTRIBUTION-0.52%
500,000 AES Corp., 9.50% Sr Note 6-1-2009............ BB 502,099 490,000
----------- -----------
FOREIGN GOVERNMENTS-0.27%
250,000 Brazil (Republic of), 11.625% Global Bond
4-15-2004.................................. B+ 248,110 252,500
----------- -----------
GAMBLING INDUSTRIES-1.44%
500,000 Isle of Capri Casinos, Inc., 8.75% Sub
Note 4-15-2009............................. B 455,201 462,500
500,000 Mandalay Resort Group, 7.625% Sr Sub Deb
7-15-2013.................................. BB- 431,686 410,000
250,000 Station Casinos, Inc., 8.875% Sr Sub
Note 12-1-2008............................. B+ 234,804 238,125
250,000 Station Casinos, Inc., 9.875% Sr Sub
Note 7-1-2010 (e).......................... B+ 249,015 250,625
----------- -----------
1,370,706 1,361,250
----------- -----------
GENERAL MEDICAL AND SURGICAL HOSPITALS-0.27%
250,000 Triad Hospitals Holdings, Inc., 11.00% Sr Sub
Note 5-15-2009............................. B- 251,446 255,625
----------- -----------
</TABLE>
33
<PAGE>
FORTIS SERIES FUND, INC.
DIVERSIFIED INCOME SERIES (CONTINUED)
Schedule of Investments
June 30, 2000 (Unaudited)
CORPORATE BONDS-NON-INVESTMENT GRADE-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
---------- ----------- ----------- -----------
<C> <S> <C> <C> <C>
INSURANCE CARRIERS-0.55%
$ 750,000 Conseco, Inc., 8.75% Note 2-9-2004........... BB- $ 749,616 $ 521,250
----------- -----------
LIMITED-SERVICE EATING PLACES-0.27%
250,000 Sbarro, Inc., 11.00% Sr Note 9-15-2009....... BB- 246,921 255,625
----------- -----------
MANUFACTURING-BASIC CHEMICAL -0.52%
500,000 Lyondell Chemical Co., 9.875% Sr Secured
Note Ser B 5-1-2007........................ BB 500,000 493,750
----------- -----------
MANUFACTURING-ENGINEERED WOOD PRODUCT -0.26%
250,000 Doman Industries, 12.00% Note 7-1-2004....... B+ 259,092 250,000
----------- -----------
MANUFACTURING-INDUSTRIAL MACHINERY -0.10%
100,000 Better Minerals & Aggregates, 13.00% Sr Sub
Note 9-15-2009............................. B- 100,000 97,750
----------- -----------
MANUFACTURING-MOTOR VEHICLE PARTS -0.66%
250,000 Holley Performance Products, 12.25% Sr Sub
Note 9-15-2007............................. B+ 241,417 180,000
500,000 Tenneco Automotive, Inc., 11.625% Sr Sub
Note 10-15-2009............................ B+ 500,000 445,000
----------- -----------
741,417 625,000
----------- -----------
MANUFACTURING-SEMICONDUCTOR, ELECTRONIC
COMPONENT -0.54%
500,000 Fairchild Semiconductor, 10.375% Sr Sub
Note 10-1-2007............................. B 507,669 508,750
----------- -----------
MEDICAL AND DIAGNOSTIC LABORATORIES-0.11%
100,000 Unilab Finance Corp., 12.75% Sr Sub
Note 10-1-2009............................. B- 97,377 103,000
----------- -----------
MILLS-PULP, PAPER AND PAPERBOARD -0.53%
500,000 Packaging Corp. of America, 9.625% Sr Sub
Note 4-1-2009.............................. B+ 512,195 496,250
----------- -----------
OIL AND GAS EXTRACTION-1.33%
500,000 Ocean Energy, Inc., 8.875% Sr Sub Note Ser B
7-15-2007.................................. BB- 506,335 497,500
250,000 Pioneer Natural Resources Co., 9.625% Sr
Note 4-1-2010.............................. BB+ 249,129 258,157
500,000 Swift Energy Co., 10.25% Sr Sub
Note 8-1-2009.............................. B- 502,947 506,250
----------- -----------
1,258,411 1,261,907
----------- -----------
OTHER INFORMATION SERVICES-0.95%
250,000 Globix Corp., 12.50% Sr Note 2-1-2010........ B- 251,818 205,000
750,000 PSINet, Inc., 11.00% Sr Note 8-1-2009........ B- 714,453 693,750
----------- -----------
966,271 898,750
----------- -----------
RADIO AND TELEVISION BROADCASTING-1.02%
250,000 Ackerley Group, Inc., 9.00% Sr Sub Note
Ser B 1-15-2009............................ B 232,699 229,375
1,008,177 Australis Media Ltd. Sr Disc
Note 5-15-2003 (Zero coupon through
5-15-2000, thereafter
15.75%) (withwarrants) (a) (e)............. D 796,220 10
250,000 Sinclair Broadcast Group, Inc., 10.00% Sr Sub
N ote 9-30-2005............................ B 250,000 238,750
500,000 Spanish Broadcasting System, Inc., 9.625% Sr
Sub 11-1-2009.............................. B- 490,889 497,500
----------- -----------
1,769,808 965,635
----------- -----------
STEEL PRODUCT MANUFACTURING FROM PURCHASED
STEEL-0.25%
250,000 AK Steel Corp., 9.125% Sr Note 12-15-2006.... BB 249,417 240,000
----------- -----------
TELECOMMUNICATIONS-OTHER-2.43%
250,000 Flag Telecom Holding, Ltd., 11.625% Sr
Note 3-30-2010............................. B 242,816 242,500
500,000 Gobal Crossing Holdings Ltd., 9.50% Sr
Note 11-15-2009............................ BB 485,367 482,500
250,000 Level 3 Communications, Inc., 12.875% Sr Disc
Note 3-15-2010 (Zero coupon through
3-15-2005, thereafter 12.875%) (e) (g)..... B 138,954 136,875
750,000 Level 3 Communications, Inc., 9.125% Sr
Note 5-1-2008.............................. B 728,272 673,125
250,000 Metromedia Fiber Network, Inc., 10.00% Sr
Note 12-15-2009............................ B+ 248,076 246,250
500,000 Spectrasite Holdings, Inc., 12.875% Sr Disc
Note Ser B 3-15-2010 (Zero coupon through
3-15-2005, thereafter 12.875%) (g)......... B- 274,065 272,500
250,000 Williams Communications Group, Inc., 10.875%
Sr Note 10-1-2009.......................... B+ 248,203 244,375
----------- -----------
2,365,753 2,298,125
----------- -----------
TELECOMMUNICATIONS CARRIERS-WIRED-3.21%
500,000 Alaska Communications SY, 9.375% Sr Sub
Note 5-15-2009............................. B+ 500,000 461,250
250,000 Focal Communications Corp., 11.875% Sr
Note 1-15-2010 (f)......................... B 244,397 251,250
500,000 Intermedia Communications, Inc., 8.50% Sr
Note Ser B 1-15-2008....................... B 510,785 460,000
250,000 Madison River Communications, 13.25% Sr
Note 3-1-2010 (f).......................... CCC+ 246,639 225,000
750,000 NEXTLINK Communications, 10.50% Sr
Note 12-1-2009 (f)......................... B 750,000 731,250
500,000 NEXTLINK Communications, 12.125% Sr Disc
Note 12-1-2009 (Zero coupon through
12-1-2004, thereafter 12.125%) (f) (g)..... B 298,298 287,500
</TABLE>
34
<PAGE>
CORPORATE BONDS-NON-INVESTMENT GRADE-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
---------- ----------- ----------- -----------
<C> <S> <C> <C> <C>
$ 750,000 RCN Corp., 10.125% Sr Note 1-15-2010......... B- $ 750,000 $ 624,375
----------- -----------
3,300,119 3,040,625
----------- -----------
TELECOMMUNICATIONS CARRIERS-WIRELESS-1.91%
250,000 Dobson Communications, 10.875% Sr
Note 7-1-2010 (e).......................... NR 248,115 251,250
250,000 Grupo Iusacell S.A. de C.V., 14.25% Sr
Note 12-1-2006............................. B+ 260,847 261,250
500,000 Nextel Communications, Inc., 10.65% Sr Disc
Note 9-15-2007 (Zero coupon through
9-15-2002, thereafter 10.65%) (g).......... B 376,274 392,500
150,000 Omnipoint Corp., 11.625% Sr Note Ser A
8-15-2006.................................. CCC+ 146,910 162,000
500,000 PTC International Finance II S.A., 11.25% Sr
Sub Note 12-1-2009......................... B+ 492,896 507,500
350,000 Telecorp PCS, Inc., 11.41% Sr Sub
Note 4-15-2009 ( Zero coupon through
4-15-2004, thereafter 11.625%) (g)......... NR 231,875 228,375
----------- -----------
1,756,917 1,802,875
----------- -----------
WATER, SEWAGE AND OTHER SYSTEMS-0.51%
500,000 Azurix Corp., 10.75% Sr Note 2-15-2010 (f)... BB 501,515 481,250
----------- -----------
TOTAL CORPORATE BONDS - NON-INVESTMENT
GRADE...................................... $22,178,628 $20,342,230
=========== ===========
</TABLE>
U.S. GOVERNMENT SECURITIES-15.83%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Cost (b) Value (c)
---------- ----------- -----------
<C> <S> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION-7.27%
MORTGAGE BACKED SECURITIES:
$ 685,835 6.00% 2013................................... $ 687,628 $ 648,785
270,398 6.30% 2008................................... 270,695 255,636
2,800,000 6.50% 2014................................... 2,643,147 2,700,474
2,561,869 7.00% 2029................................... 2,526,156 2,473,351
809,794 7.50% 2022-2027.............................. 835,329 798,652
----------- -----------
TOTAL FEDERAL NATIONAL MORTGAGE
ASSOCIATION................................ 6,962,955 6,876,898
----------- -----------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION-1.64%
MORTGAGE BACKED SECURITIES:
1,028,964 9.00% 2020................................... 1,077,840 1,063,038
478,539 9.50% 2019................................... 496,824 490,838
----------- -----------
TOTAL GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION................................ 1,574,664 1,553,876
----------- -----------
U.S. TREASURY SECURITIES-6.92%
BONDS:
1,750,000 5.25% 2029................................... 1,462,833 1,552,579
1,350,000 6.125% 2029.................................. 1,323,875 1,364,344
150,000 8.00% 2021................................... 175,250 181,031
2,000,000 8.125% 2021.................................. 2,576,512 2,435,000
----------- -----------
5,538,470 5,532,954
----------- -----------
NOTES:
500,000 6.00% 2009................................... 493,556 495,938
500,000 6.50% 2010................................... 513,523 517,032
----------- -----------
1,007,079 1,012,970
----------- -----------
TOTAL U.S. TREASURY SECURITIES............... 6,545,549 6,545,924
----------- -----------
TOTAL U.S. GOVERNMENT SECURITIES............. $15,083,168 $14,976,698
=========== ===========
</TABLE>
COMMON STOCKS-0.00%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
---------- ----------- -----------
<C> <S> <C> <C>
TELECOMMUNICATIONS-OTHER-0.00%
1,000 Iridium LLC/Capital Corp. (Warrants) (a)
(e)........................................ $ 96,501 $ 10
----------- -----------
TOTAL LONG-TERM INVESTMENTS.................. $93,181,425 $88,620,807
=========== ===========
</TABLE>
35
<PAGE>
FORTIS SERIES FUND, INC.
DIVERSIFIED INCOME SERIES (CONTINUED)
Schedule of Investments
June 30, 2000 (Unaudited)
SHORT-TERM INVESTMENTS-4.54%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
---------- -----------
<C> <S> <C>
CONSUMER LENDING-0.70%
$ 661,000 Associates Corp. Master Variable Rate Note,
Current rate -- 6.50%...................... $ 661,000
-----------
DEPOSITORY CREDIT-BANKING-3.84%
3,629,066 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 6.43%........ 3,629,066
-----------
TOTAL SHORT-TERM INVESTMENTS................. 4,290,066
-----------
TOTAL INVESTMENTS IN SECURITIES (COST:
$97,471,491) (b)........................... $92,910,873
===========
</TABLE>
(a) Presently non-income producing. For long-term debt securities, items
identified are in default as to payment of interest and/or principal.
(b) At June 30, 2000, the cost of securities for federal income tax purposes
was $97,511,322 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 501,261
Unrealized depreciation..................................... (5,101,710)
--------------------------------------------------------------------------
Net unrealized depreciation................................. $ (4,600,449)
--------------------------------------------------------------------------
</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 8.09% of total net assets as of June 30, 2000.
(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>
Date Acquired Shares/Par Security Cost Basis
------------- ---------- -------- ----------
<S> <C> <C> <C>
1997 1,008,177 Australis Media Ltd. due 2003 $ 796,220
2000 250,000 Dobson Communications due 2010 - 144A 248,115
1997 1,000 Irridium LLC/Capital Corp. (Warrants) -
144A 96,501
2000 250,000 Level 3 Communications, Inc. due 2010 -
144A 138,954
1998 1,250,000 Prudential Insurance Co. due 2006 - 144A 1,245,561
2000 250,000 Station Casinos, Inc. due 2010 - 144A 249,015
</TABLE>
The aggregate value of these securities at June 30, 2000, was
$1,793,984, which represents 1.90% of total net assets.
(f) Securities sold within the terms of a private placement memorandum, exempt
from registration under Section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or to other
"accredited investors." Pursuant to guidelines adopted by the Board of
Directors, these issues are deemed to be liquid. The aggregate value of
these securities at June 30, 2000, was $2,995,537, which represents 3.17%
of total net assets.
(g) The interest rate disclosed for these securities represents the effective
yield on the date of acquisition.
(h) The interest rate disclosed for principal only strips represents the
effective yield at June 30, 2000, based upon future cash flows. This
investment has been identified by portfolio management as a liquid
security. The aggregate value of this security at June 30, 2000, was
$322,835, which represents .34% of total net assets.
* Moody's Rating
** Duff & Phelps Rating
36
<PAGE>
FORTIS SERIES FUND, INC.
MULTISECTOR BOND SERIES
Schedule of Investments
June 30, 2000 (Unaudited)
CORPORATE BONDS-INVESTMENT GRADE-51.34%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
---------- ----------- ----------- -----------
<C> <S> <C> <C> <C>
ACTIVITIES RELATED TO REAL ESTATE - 0.34%
$ 80,000 ERP Operating L.P., 7.125% Note 10-15-2017... BBB+ $ 69,081 $ 67,578
----------- -----------
CABLE AND OTHER PROGRAM DISTRIBUTION - 1.63%
150,000 Time Warner, Inc., 9.125% Deb 1-15-2013...... BBB 164,662 162,788
150,000 Time Warner, Inc., 9.15% Deb 2-1-2023........ BBB 166,687 164,463
----------- -----------
331,349 327,251
----------- -----------
CABLE AND OTHER SUBSCRIPTION PROGRAMMING -
0.74%
150,000 Cox Enterprises, Inc., 8.00% Note
2-15-2007 (g).............................. BBB+ 150,367 148,668
----------- -----------
CAPTIVE AUTO FINANCE - 1.47%
150,000 Ford Motor Credit Co., 7.375% Note
10-28-2009................................. A 146,660 145,128
150,000 General Motors Acceptance Corp., 7.75% Global
Note 1-19-2010............................. A 150,044 149,114
----------- -----------
296,704 294,242
----------- -----------
COMMERCIAL BANKING - 3.49%
150,000 Mercantile Bancorp, 7.30% Sub Note
6-15-2007.................................. A- 142,649 143,975
150,000 NCNB Corp., 9.375% Sub Note 9-15-2009........ A 163,787 163,047
200,000 Republic New York Corp., 9.70% Sub Note
2-1-2009................................... A 220,906 219,056
200,000 Union Planters Bank, 6.50% 3-15-2008......... BBB 176,438 175,083
----------- -----------
703,780 701,161
----------- -----------
CONSUMER LENDING - 0.75%
150,000 Household Finance Corp., 8.00% 5-9-2005...... A 149,870 151,187
----------- -----------
DEPOSITORY CREDIT-BANKING - 4.13%
100,000 Banponce Trust I, 8.327% Ser A 2-1-2027...... BBB- 90,291 84,142
100,000 BB&T Corp., 6.375% Sub Note 6-30-2005........ BBB+ 93,038 94,864
100,000 First Union Corp., 6.55% Sub Deb
10-15-2035................................. A- 94,624 95,192
100,000 First Union Corp., 7.50% Sub Deb 4-15-2035... A- 98,779 99,778
150,000 NBD Bank N.A. Michigan, 8.25% Sub Deb
11-1-2024.................................. A 156,158 157,348
150,000 Regions Financial Corp., 7.75% Sub Note
9-15-2024.................................. A- 151,539 150,329
150,000 Washington Mutual, Inc., 8.25% Sub Note
4-1-2010................................... BBB 145,395 148,003
----------- -----------
829,824 829,656
----------- -----------
ELECTRIC GENERATION, TRANSMISSION AND
DISTRIBUTION - 3.37%
160,000 Israel Electric Corp. Ltd., 7.75% Deb
12-15-2027 (g)............................. A- 140,485 139,806
100,000 Israel Electric Corp. Ltd., 7.75% Sr Secured
3-1-2009 (f)............................... A- 97,232 96,772
200,000 Kincaid Generation LLC, 7.33% Bond
6-15-2020 (f).............................. BBB- 176,177 182,598
113,415 Niagara Mohawk Power Co., 7.625% Sr Note
10-1-2005.................................. BBB- 111,836 111,447
100,000 Niagara Mohawk Power Co., 7.75% Sr Note
10-1-2008.................................. BBB- 96,961 97,458
50,000 Public Service Company of New Mexico, 7.10%
Sr Note 8-1-2005........................... BBB- 47,307 48,281
----------- -----------
669,998 676,362
----------- -----------
INSURANCE CARRIERS - 1.89%
200,000 GE Global Insurance, 7.75% Note 6-15-2030.... AA 198,992 197,895
150,000 John Hancock Global Funding II, 7.90%
7-2-2010 (f)............................... AA+ 149,641 151,334
35,000 Torchmark Corp., 7.875% Note 5-15-2023....... A 33,214 30,860
----------- -----------
381,847 380,089
----------- -----------
MANUFACTURING-MOTOR VEHICLE - 0.76%
150,000 DaimlerChrysler N.A., 8.00% Global Note
6-15-2010.................................. A+ 150,974 152,585
----------- -----------
MANUFACTURING-PETROLEUM AND COAL PRODUCTS -
1.30%
120,000 Amerada Hess Corp., 7.875% Bond 10-1-2029.... BBB 108,738 117,759
150,000 Tosco Corp., 7.80% Deb 1-1-2027.............. BBB 145,493 142,919
----------- -----------
254,231 260,678
----------- -----------
MOTION PICTURE AND VIDEO INDUSTRIES - 1.80%
200,000 News America Holdings, Inc., 8.45% Note
8-1-2034................................... BBB- 204,653 202,030
150,000 News America Holdings, Inc., 9.25% Sr Deb
2-1-2013................................... BBB- 161,489 159,143
----------- -----------
366,142 361,173
----------- -----------
</TABLE>
37
<PAGE>
FORTIS SERIES FUND, INC.
MULTISECTOR BOND SERIES (CONTINUED)
Schedule of Investments
June 30, 2000 (Unaudited)
CORPORATE BONDS-INVESTMENT GRADE-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
---------- ----------- ----------- -----------
<C> <S> <C> <C> <C>
NATURAL GAS DISTRIBUTION - 1.38%
$ 150,000 Enron Corp., 8.375% Medium Term Note
5-23-2005.................................. BBB+ $ 149,497 $ 154,805
125,000 Sonat, Inc., 7.625% Note 7-15-2011........... BBB 117,405 122,180
----------- -----------
266,902 276,985
----------- -----------
NONDEPOSITORY CREDIT BANKING - 11.34%
100,000 Associates Corp., N.A. 6.95% Deb 11-1-2018... A+ 90,620 87,974
150,000 Associates Corp., N.A. 7.95% Sr Deb
2-15-2010.................................. A+ 150,847 148,233
160,000 Countrywide Home Loan, Inc., 6.25% Med Term
Note 4-15-2009............................. A 144,635 139,891
1,300,000 European Investment Bank, 5.85% Floating Rate
Note 11-26-2002............................ AAA 1,295,463 1,295,918
170,000 General Motors Acceptance Corp., 5.75% Global
Note 11-10-2003............................ A 161,338 161,241
150,000 Heller Financial, Inc., 7.375% Note
11-1-2009.................................. A- 144,163 141,158
150,000 Heller Financial, Inc., 8.00% Global Note
6-15-2005.................................. A- 149,630 149,522
150,000 Sumitomo Bank International Finance, Inc.,
8.50% Note 6-15-2009....................... BBB 153,281 151,650
----------- -----------
2,289,977 2,275,587
----------- -----------
OIL AND GAS EXTRACTION - 2.50%
200,000 Occidental Petroleum Corp., 9.25% Sr Deb
8-1-2019................................... BBB- 203,812 217,670
100,000 Statoil, 7.375% Deb 5-1-2016 (f)............. AA- 93,862 95,323
200,000 Union Pacific Resources, 7.50% Deb
10-15-2026................................. BBB- 173,083 187,895
----------- -----------
470,757 500,888
----------- -----------
OTHER FINANCIAL INVESTMENT ACTIVITIES - 1.38%
100,000 Citicorp Lease, 8.04% Pass Thru Certificate
Ser 1999-1 Class A2 12-15-2019 (f)......... AA- 98,769 99,709
150,000 Hutchison Delta Finance Corp., 7.00% Conv.
11-25-2001................................. A 170,900 176,250
----------- -----------
269,669 275,959
----------- -----------
OTHER HEAVY CONSTRUCTION - 0.40%
80,000 Morrison Knudsen Corp., 11.00% Sr Note
7-1-2010 (f)............................... 79,410 79,600
----------- -----------
PIPELINE TRANSPORTATION OF NATURAL GAS -
0.89%
200,000 Dynegy Holdings, Inc., 7.125% Deb
5-15-2018.................................. BBB+ 178,834 178,989
----------- -----------
RADIO AND TELEVISION BROADCASTING - 0.93%
80,000 Liberty Media Group, Inc., 7.875% Bond
7-15-2009.................................. BBB- 79,863 77,022
120,000 Liberty Media Group, Inc., 8.25% Deb
2-1-2030................................... BBB- 112,055 110,192
----------- -----------
191,918 187,214
----------- -----------
RAIL TRANSPORTATION - 0.73%
150,000 CSX Corp., 7.25% Deb 5-1-2027................ BBB 144,093 146,404
----------- -----------
SALES FINANCING - 0.96%
190,000 General Electric Capital Corp., 7.375% Medium
Term Note 1-19-2010........................ AAA 185,764 191,792
----------- -----------
SCHEDULED AIR TRANSPORTATION - 1.02%
100,000 Delta Air Lines, Inc., 10.375% Deb
12-15-2022................................. BBB- 111,490 109,263
100,000 Delta Air Lines, Inc., 9.00% Deb 5-15-2016... BBB- 99,504 95,323
----------- -----------
210,994 204,586
----------- -----------
SECURITIES AND COMMODITY CONTRACTS AND
BROKERAGE - 2.60%
200,000 Lehman Brothers Holdings, Inc., 7.375% Sr Sub
Note 1-15-2007............................. A 194,533 191,544
200,000 Lehman Brothers Holdings, Inc., 8.50% Note
8-1-2015................................... A 203,109 199,308
100,000 Lehman Brothers Holdings, Inc., 8.80% Sr Note
3-1 -2015.................................. A 105,100 105,685
300,000 Lehman Brothers Holdings, Inc., 9.00% Note
2-10-2028 (h).............................. A 26,971 24,770
----------- -----------
529,713 521,307
----------- -----------
TELECOMMUNICATIONS-OTHER - 2.31%
150,000 AT&T Canada, Inc., 7.65% Note 9-15-2006...... BBB 147,580 148,532
90,000 Deutsche Telekom Finance (US Dollar), 8.00%
6-15-2010.................................. 89,691 90,728
100,000 Qwest Communications International, Inc.,
7.50% Sr Note Ser B 11-1-2008.............. BB+ 93,798 97,058
125,000 Worldcom, Inc., 8.00% Note 5-15-2006......... A- 123,687 126,383
----------- -----------
454,756 462,701
----------- -----------
TELECOMMUNICATIONS-WIRED - 0.90%
150,000 Bell Atlantic Financial Services, Inc., 4.25%
Conv. 9-15-2005............................ A+ 233,880 180,937
----------- -----------
</TABLE>
38
<PAGE>
CORPORATE BONDS-INVESTMENT GRADE-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
---------- ----------- ----------- -----------
<C> <S> <C> <C> <C>
TELECOMMUNICATIONS CARRIERS-WIRELESS - 0.55%
$ 100,000 Centel Capital Corp., 9.00% Deb 10-15-2019... BBB+ $ 110,689 $ 109,963
----------- -----------
WASTE COLLECTION - 1.78%
150,000 Waste Management, Inc., 7.10% Note
8-1-2026................................... BBB 139,161 140,978
150,000 Waste Management, Inc., 7.125% Sr Note
10-1-2007.................................. BBB 131,193 134,306
100,000 Waste Management, Inc., 7.125% Sr Note
12-15-2017................................. BBB 77,891 81,673
----------- -----------
348,245 356,957
----------- -----------
TOTAL CORPORATE BONDS - INVESTMENT GRADE..... $10,319,768 $10,300,499
=========== ===========
</TABLE>
CORPORATE BONDS-NON-INVESTMENT GRADE-15.56%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount (d) Rating Cost (b)(d) Value (c)(d)
---------- ----------- ----------- ------------
<C> <S> <C> <C> <C>
AUTOMOTIVE EQUIPMENT RENTAL AND LEASING -
0.39%
$ 75,000 Avis Rent A Car, Inc., 11.00% Sr Sub Note
5-1-2009................................... BB- $ 75,294 $ 78,188
----------- -----------
AUTOMOTIVE PARTS, ACCESSORIES AND TIRE STORES
- 0.22%
50,000 CSK Auto, Inc., 11.00% 11-1-2006............. B 49,513 44,500
----------- -----------
CABLE AND OTHER PROGRAM DISTRIBUTION - 1.78%
150,000 British Sky Broadcasting Group plc, 8.20%
7-15-2009.................................. Baa3* 148,031 140,695
100,000 Charter Communications Holdings LLC, 9.92% Sr
Disc Note 4-1-2011 (Zero coupon through
4-1-2004, thereafter 9.92%) (h)............ B+ 58,049 56,750
100,000 Charter Communications Holdings, LLC/Charter
Communications Holdings Capital Corp.,
10.25% Sr Note 1-15-2010................... B+ 97,507 96,750
100,000 NTL Communications Corp., 12.375% Sr Note Ser
B 10-1-2008 (Zero coupon through 10-1-2003,
thereafter 12.375%) (h).................... B- 66,613 63,500
----------- -----------
370,200 357,695
----------- -----------
CABLE AND OTHER SUBSCRIPTION PROGRAMMING -
2.64%
100,000 Adelphia Communications Corp., 9.375% Sr Note
11-15-2009................................. B+ 94,317 92,500
40,000 Callahan Nordrhein-Westfalen, 14.00% Sr Note
7-15-2010 (f).............................. B- 40,000 40,000
200,000 CSC Holdings, Inc., 7.875% Deb 2-15-2018..... BB+ 183,687 183,963
220,000 CSC Holdings, Inc., 7.875% Sr Note
12-15-2007................................. BB+ 205,062 213,081
----------- -----------
523,066 529,544
----------- -----------
MANAGEMENT OF COMPANIES AND ENTERPRISES -
0.27%
100,000 Knology Holdings, Inc., 15.28% Sr Disc Note
10-15-2007 (Zero coupon through 10-15-2002,
thereafter 11.875%) (h).................... NR 63,919 54,000
----------- -----------
MANUFACTURING-ARCHITECTURAL AND STRUCTURAL
METALS - 0.25%
50,000 Dayton Superior Corp., 13.00%
6-15-2009 (f).............................. B- 48,727 49,250
----------- -----------
MANUFACTURING-BASIC CHEMICAL - 0.42%
100,000 Texas Petrochemical Corp., 11.125% Sr Sub
Note 7-1-2006.............................. B 85,087 85,000
----------- -----------
MANUFACTURING-MEDICAL EQUIPMENT AND SUPPLIES
- 0.48%
60,000 DJ Orthopedics LLC/CAP, 12.625% 6-15-2009.... B- 56,235 57,000
40,000 Tekni-Plex, Inc., 12.75% Sr Sub Note
6-15-2010 (f).............................. B- 39,464 40,000
----------- -----------
95,699 97,000
MANUFACTURING-OTHER CHEMICAL AND PREPARATION
- 0.36%
70,000 Polaroid Corp., 11.50% Sr Note 2-15-2006..... BB- 71,441 72,800
----------- -----------
MANUFACTURING-PHARMACEUTICAL AND MEDICINE -
0.51%
100,000 Warner Chilcott, Inc., 12.625% 2-15-2008..... B+ 102,722 102,625
----------- -----------
</TABLE>
39
<PAGE>
FORTIS SERIES FUND, INC.
MULTISECTOR BOND SERIES (CONTINUED)
Schedule of Investments
June 30, 2000 (Unaudited)
CORPORATE BONDS-NON-INVESTMENT GRADE-CONTINUED
<TABLE>
--------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
<CAPTION>
STANDARD
Principal & Poor's Market
Amount (d) Rating Cost (a)(d) Value (a)(d)
---------- ----------- ----------- ------------
<C> <S> <C> <C> <C>
NONDEPOSITORY CREDIT BANKING - 3.01%
$ 200,000 Beaver Valley Funding Corp., 9.00% Deb
6-1-2017................................... BB- $ 196,960 $ 199,000
300,000 Capital One Financial Corp., 7.25% Note
5-1-2006................................... Baa3* 283,569 282,156
150,000 MBNA Capital I, 8.278% Ser A 12-1-2026....... BB+ 138,210 122,652
----------- -----------
618,739 603,808
----------- -----------
OIL AND GAS EXTRACTION - 0.31%
60,000 Pioneer Natural Resources Co., 9.625% Sr Note
4-1-2010................................... BB+ 59,791 61,958
----------- -----------
OTHER ELECTRICAL EQUIPMENT AND COMPONENT -
0.30%
70,000 Excide Corp., 10.00% Sr Note 4-15-2005....... B+ 73,397 60,200
----------- -----------
PIPELINE TRANSPORTATION OF NATURAL GAS -
0.42%
100,000 KN Capital Trust III, 7.63% 4-15-2028........ Baa* 88,874 83,749
----------- -----------
RADIO AND TELEVISION BROADCASTING - 0.47%
150,000 Fox Family Worldwide, Inc., 14.45% Sr Disc
Note 11-1-2007 (Zero coupon through
11-1-2002, thereafter 10.25%) (h).......... B 93,752 93,375
----------- -----------
SCHEDULED AIR TRANSPORTATION - 0.53%
105,000 Atlas Air, Inc., 10.75% Sr Note 8-1-2005..... B 106,128 106,706
----------- -----------
TELECOMMUNICATIONS-OTHER - 0.97%
30,000 Crown Castle International Corp., 10.75% Sr
Note 8-1-2011.............................. B 30,003 30,413
100,000 Econophone, Inc., 13.50% Sr Note 7-15-2007... NR 100,923 103,125
60,000 Tele1 Europe B.V., 13.00% Sr Note
5-15-2009.................................. B- 63,831 60,900
----------- -----------
194,757 194,438
----------- -----------
TELECOMMUNICATIONS CARRIERS-WIRED - 1.02%
70,000 Enitel ASA (European Monetary Unit), 12.50%
4-15-2010 (f).............................. B- 67,026 67,689
100,000 Grapes Communications N.V. (European Monetary
Unit), 13.50% 5-15-2010 (f)................ NR 89,220 91,484
60,000 RSL Communications plc, 12.875%
3-1-2010 (f)............................... B- 58,409 45,000
----------- -----------
214,655 204,173
----------- -----------
TELECOMMUNICATIONS CARRIERS-WIRELESS - 0.54%
100,000 Airgate PCS, Inc., 13.70% Sub Note
10-1-2009 (Zero coupon through 10-1-2004,
thereafter 13.50%) (h)..................... CCC 55,592 57,250
100,000 Alamosa PCS Holdings, Inc., 14.44%
2-15-2010 (Zero coupon through 2-15-2005,
thereafter 12.875%) (h) CCC+ 48,871 52,000
----------- -----------
104,463 109,250
----------- -----------
TRAVELER ACCOMMODATION - 0.25%
50,000 MGM Grand, Inc., 9.75% Sr Sub Note
6-1-2007................................... BB+ 49,387 50,875
----------- -----------
WASTE TREATMENT AND DISPOSAL - 0.42%
100,000 Allied Waste of North America, 10.00% Ser B
8-1-2009................................... B+ 77,524 83,500
----------- -----------
TOTAL CORPORATE BONDS - NON-INVESTMENT
GRADE...................................... $3,167,135 $ 3,122,634
=========== ===========
</TABLE>
U.S. GOVERNMENT SECURITIES-29.75%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Cost (b) Value (c)
---------- ----------- -----------
<C> <S> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 3.93%
NOTES:
$ 800,000 6.25% 2002................................... $ 787,745 $ 788,002
----------- -----------
OTHER DIRECT FEDERAL OBLIGATIONS - 7.95%
FEDERAL FARM CREDIT BANK:
750,000 5.15% 2003................................... 718,652 718,539
----------- -----------
FEDERAL HOME LOAN BANK:
900,000 6.125% 2003.................................. 878,136 877,685
----------- -----------
TOTAL OTHER DIRECT FEDERAL OBLIGATIONS....... 1,596,788 1,596,224
----------- -----------
U.S. TREASURY SECURITIES - 17.87%
NOTES:
3,500,000 6.50% 2002-2010.............................. 3,562,691 3,585,157
----------- -----------
TOTAL U.S. GOVERNMENT SECURITIES............. $5,947,224 $ 5,969,383
=========== ===========
</TABLE>
40
<PAGE>
COMMON STOCKS-0.06%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (a) Value (b)
---------- ------------ -----------
<C> <S> <C> <C>
TELECOMMUNICATIONS RESELLERS -
0.06%
1,056 Tele1 Europe Holdings AB
ADR (a)....................... $ 25,275 $ 12,738
----------- -----------
TOTAL LONG-TERM INVESTMENTS..... $19,459,402 $19,405,254
=========== ===========
</TABLE>
SHORT-TERM INVESTMENTS-2.50%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
---------- -----------
<C> <S> <C>
DEPOSITORY CREDIT-BANKING - 0.01%
$ 777 U.S. Bank N.A. Money Market Variable Rate Time
Deposit, Current rate -- 6.43%.................... $ 777
-----------
INVESTMENT COMPANY - 2.49%
500,185 First American Institutional Government Fund,
Current rate -- 6.14%............................. 500,185
-----------
TOTAL SHORT-TERM INVESTMENTS........................ 500,962
-----------
TOTAL INVESTMENTS IN SECURITIES (COST:
$19,960,364)(b)................................... $19,906,216
===========
</TABLE>
(a) Presently non-income producing.
(b) At June 30, 2000, the cost of securities for federal income tax purposes
was $19,963,444 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 162,874
Unrealized depreciation..................................... (220,102)
-------------------------------------------------------------------------
Net unrealized depreciation................................. $ (57,228)
-------------------------------------------------------------------------
</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 11.16% of net assets as of June 30, 2000.
(e) Cost and market value are stated in U.S. dollars; principal amount is
stated in U.S. dollars unless otherwise noted.
(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". These investments have been identified by portfolio
management as illiquid securities:
<TABLE>
<CAPTION>
Period Acquired Shares/Par Security Cost Basis
--------------- ---------- -------- ----------
<S> <C> <C> <C>
2000 40,000 Callahan Nordrhein-Westfalen due 2010 -
144A $ 40,000
2000 100,000 Citicorp Lease due 2019 - 144A 98,769
2000 50,000 Dayton Superior Corp. due 2009 - 144A 48,727
2000 70,000 Enitel ASA due 2010 - 144A 67,026
2000 100,000 Grapes Communications N.V. due 2010 -
144A 89,220
2000 100,000 Israel Electric Corp. Ltd. due 2009 -
144A 97,232
2000 150,000 John Hancock Global Funding II due 2010
- 144A 149,641
2000 200,000 Kincaid Generation LLC due 2020 - 144A 176,177
2000 80,000 Morrison Knudsen Corp. due 2010 - 144A 79,410
2000 60,000 RSL Communications plc due 2010 - 144A 58,409
2000 100,000 Statoil due 2016 - 144A 93,862
2000 40,000 Tekni-Plex, Inc. due 2010 - 144A 39,464
</TABLE>
The aggregate value of these securities at June 30, 2000, was $1,038,759,
which represents 5.18% of total net assets.
(g) Securities sold within the terms of a private placement memorandum, exempt
from registration under Section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or to other
"accredited investors". Pursuant to guidelines adopted by the Board of
Directors, these issues are deemed to be liquid. The aggregate value of
these securities at June 30, 2000, was $288,474, which represents 1.44% of
total net assets.
(h) The interest rate disclosed for these securities represents the effective
yield on the date of acquisition.
* Moody's Rating
41
<PAGE>
FORTIS SERIES FUND, INC.
HIGH YIELD SERIES
Schedule of Investments
June 30, 2000 (Unaudited)
CORPORATE BONDS-NON-INVESTMENT GRADE-92.97
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- -------- ----------- -----------
<C> <S> <C> <C> <C>
AMUSEMENT PARKS AND ARCADES-1.35%
$1,250,000 Six Flags, Inc., 11.67% Sr Disc Note
4-1-2008 (Zero coupon through
4-1-2003, thereafter 10.00%) (g)...... B- $ 858,532 $ 848,437
----------- -----------
ANIMAL SLAUGHTERING AND PROCESSING-0.25%
250,000 Fresh Foods, Inc., 10.75% Sr Sub Note
6-1-2006.............................. B 250,000 155,000
----------- -----------
CABLE AND OTHER PROGRAM
DISTRIBUTION-11.39%
1,250,000 Charter Communications Holdings LLC,
9.92% Sr Disc Note 4-1-2011 (Zero
coupon through 4-1-2004,
thereafter 9.92%)..................... B+ 876,676 709,375
500,000 Galaxy Telecom L.P., 12.375% Sr Sub Note
10-1-2005............................. CC 535,894 432,500
500,000 Mediacom LLC/Capital Corp., 7.875% Sr
Note 2-15-2011........................ B+ 448,701 437,500
500,000 Mediacom LLC/Capital Corp., 8.50% Sr
Note Ser B 4-15-2008.................. B+ 500,000 460,000
1,750,000 NTL Communications Corp., 12.375% Sr
Note 10-1-2008 (Zero coupon through
10-1-2003, thereafter 12.375%) (g).... B- 1,197,971 1,111,250
500,000 Olympus Communications L.P., 10.625% Sr
Note Ser B 11-15-2006................. B+ 500,000 495,000
2,000,000 United International Holdings, Inc.,
12.49% Sr Disc Note Ser B
2-15-2008 (Zero coupon through
2-15-2003, thereafter 10.75%)......... B- 1,392,215 1,400,000
1,750,000 United Pan-Europe Communications N.V.,
11.25% Sr Note 11-1-2009.............. B 1,737,591 1,540,000
1,250,000 United Pan-Europe Communications N.V.,
13.75% Sr Disc Note 2-1-2010 (Zero
coupon through 2-1-2005, thereafter
13.75%) (g)........................... B 682,117 587,500
----------- -----------
7,871,165 7,173,125
----------- -----------
CABLE AND OTHER SUBSCRIPTION
PROGRAMMING-3.48%
1,500,000 Adelphia Communications Corp., 9.375% Sr
Note 11-15-2009....................... B+ 1,488,526 1,387,500
500,000 CSC Holdings, Inc., 10.50% Sr Sub Deb
5-15-2016............................. BB- 532,457 531,250
500,000 Callahan Nordrhein-Westfalen, 14.00% Sr
Note 7-15-2010 (e).................... B- 500,000 500,000
----------- -----------
2,520,983 2,418,750
----------- -----------
ELECTRIC GENERATION, TRANSMISSION AND
DISTRIBUTION-1.56%
1,000,000 AES Corp., 9.50% Sr Note 6-1-2009....... BB 952,732 980,000
----------- -----------
ELECTRONIC SHOPPING AND MAIL-ORDER
HOUSES-0.78%
500,000 Shop at Home, Inc., 11.00% Sr Secured
Note 4-1-2005......................... B 500,000 490,000
----------- -----------
GAMBLING INDUSTRIES-7.24%
1,500,000 Argosy Gaming Co., 10.75% Sr Sub Note
6-1-2009.............................. B 1,500,000 1,550,625
1,000,000 Isle of Capri Casinos, Inc., 8.75% Sub
Note 4-15-2009........................ B 961,405 925,000
750,000 Mandalay Resort Group, 7.625% Sr Sub Deb
7-15-2013............................. BB- 647,530 615,000
750,000 Station Casinos, Inc., 8.875% Sr Sub
Note 12-1-2008........................ B+ 704,411 714,375
750,000 Station Casinos, Inc., 9.875% Sr Sub
Note 7-1-2010 (e)..................... B+ 747,045 751,875
----------- -----------
4,560,391 4,556,875
----------- -----------
GENERAL MEDICAL AND SURGICAL
HOSPITALS-2.42%
750,000 Tenet Healthcare Corp., 9.25% Sr Note
9-1-2010.............................. BB+ 757,500 755,625
750,000 Triad Hospitals Holdings, Inc., 11.00%
Sr Sub Note 5-15-2009................. B- 754,339 766,875
----------- -----------
1,511,839 1,522,500
----------- -----------
LIMITED-SERVICE EATING PLACES-1.22%
750,000 Sbarro, Inc., 11.00% Sr Note
9-15-2009............................. BB- 740,764 766,875
----------- -----------
MANUFACTURING-BASIC CHEMICAL -1.18%
750,000 Lyondell Chemical Co., 9.875% Sr Secured
Note Ser B 5-1-2007................... BB 745,332 740,625
----------- -----------
MANUFACTURING-ENGINEERED WOOD PRODUCT
-0.79%
500,000 Doman Industries, 12.00% Note
7-1-2004.............................. B+ 518,185 500,000
----------- -----------
MANUFACTURING-INDUSTRIAL MACHINERY
-0.70%
450,000 Better Minerals & Aggregates, 13.00% Sr
Sub Note 9-15-2009.................... B- 450,000 439,875
----------- -----------
MANUFACTURING-MOTOR VEHICLE PARTS -2.92%
750,000 Hayes Lemmerz International, Inc., 8.25%
Sr Sub Note 12-15-2008................ B 750,000 633,750
750,000 Holley Performance Products, 12.25% Sr
Sub Note 9-15-2007.................... B+ 724,251 540,000
</TABLE>
42
<PAGE>
CORPORATE BONDS-NON-INVESTMENT GRADE-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- -------- ----------- -----------
<C> <S> <C> <C> <C>
$ 750,000 Tenneco Automotive, Inc., 11.625% Sr Sub
Note 10-15-2009....................... B+ $ 750,000 $ 667,500
----------- -----------
2,224,251 1,841,250
----------- -----------
MANUFACTURING-SEMICONDUCTOR, ELECTRONIC
COMPONENT -2.81%
750,000 Amkor Technologies, Inc., 10.50% Sr Sub
Note 5-1-2009......................... B 756,555 750,938
1,000,000 Fairchild Semiconductor, 10.375% Sr Sub
Note 10-1-2007........................ B 1,016,989 1,017,500
----------- -----------
1,773,544 1,768,438
----------- -----------
MANUFACTURING-SOAP, CLEANING COMPOUND,
TOILET -0.40%
250,000 Chattem, Inc., 12.75% Sr Sub Note Ser B
6-15-2004............................. B- 255,821 252,500
----------- -----------
MEDICAL AND DIAGNOSTIC
LABORATORIES-1.23%
750,000 Unilab Finance Corp., 12.75% Sr Sub Note
10-1-2009............................. B- 741,495 772,500
----------- -----------
MILLS-PULP, PAPER AND PAPERBOARD -1.58%
1,000,000 Packaging Corp. of America, 9.625% Sr
Sub Note 4-1-2009..................... B+ 1,000,000 992,500
----------- -----------
OIL AND GAS EXTRACTION-3.20%
1,000,000 Ocean Energy, Inc., 8.875% Sr Sub Note
Ser B 7-15-2007....................... BB- 992,063 995,000
500,000 Pioneer Natural Resources Co., 9.625% Sr
Note 4-1-2010......................... BB+ 498,259 516,315
500,000 Swift Energy Co., 10.25% Sr Sub Note
8-1-2009.............................. B- 502,947 506,250
----------- -----------
1,993,269 2,017,565
----------- -----------
OTHER INFORMATION SERVICES-4.42%
1,000,000 Exodus Communications, Inc., 10.75% Sr
Note 12-15-2009 (e)................... B 983,228 965,000
250,000 Exodus Communications, Inc., 11.625% Sr
Note 7-15-2010 (e).................... NR 250,000 250,625
500,000 Globix Corp., 12.50% Sr Note 2-1-2010... B- 503,636 410,000
1,250,000 PSINet, Inc., 11.00% Sr Note 8-1-2009... B- 1,201,999 1,156,250
----------- -----------
2,938,863 2,781,875
----------- -----------
PRINTING AND RELATED SUPPORT
ACTIVITIES-2.13%
500,000 Cadmus Communications Corp., 9.75% Sr
Sub Note 6-1-2009..................... B 500,000 485,000
750,000 Mail-Well I Corp., 8.75% Sr Sub Note Ser
B 12-15-2008.......................... B+ 750,000 630,000
250,000 Phoenix Color Corp., 10.375% Sr Sub Note
2-1-2009.............................. B- 250,000 225,000
----------- -----------
1,500,000 1,340,000
----------- -----------
RADIO AND TELEVISION BROADCASTING-5.02%
1,000,000 Ackerley Group, Inc., 9.00% Sr Sub Note
Ser B 1-15-2009....................... B 948,099 917,500
3,033,461 Australis Media Ltd. Sr Disc Note
5-15-2003 (Zero coupon through
5-15-2000, thereafter
15.75%) (withwarrants) (a)(e)......... D 2,277,149 30
500,000 Sinclair Broadcast Group, Inc., 10.00%
Sr Sub Note 9-30-2005................. B 517,498 477,500
750,000 Spanish Broadcasting System, Inc.,
9.625% Sr Sub 11-1-2009............... B- 750,000 746,250
1,000,000 Young Broadcasting Corp., 11.75% Sr Sub
Note 11-15-2004....................... B 1,061,597 1,017,500
----------- -----------
5,554,343 3,158,780
----------- -----------
STEEL PRODUCT MANUFACTURING FROM
PURCHASED STEEL-0.76%
500,000 AK Steel Corp., 9.125% Sr Note
12-15-2006............................ BB 498,834 480,000
----------- -----------
SUPPORT ACTIVITIES FOR MINING-1.29%
750,000 RBF Finance Co., 11.375% Sr Secured Note
3-15-2009............................. BB- 750,000 813,750
----------- -----------
TELECOMMUNICATIONS-OTHER-9.31%
750,000 Flag Telecom Holding, Ltd., 11.625% Sr
Note 3-30-2010........................ B 735,631 727,500
1,000,000 Gobal Crossing Holdings Ltd., 9.50% Sr
Note 11-15-2009....................... BB 991,532 965,000
375,000 IMPSAT Fiber Networks, Inc., 13.75% Sr
Note 2-15-2005 (e).................... B 375,000 333,750
1,000,000 Level 3 Communications, Inc., 12.875% Sr
Disc Note 3-15-2010 (Zero coupon
through 3-15-2005, thereafter
12.875%) (e) (g)...................... B 555,816 547,500
750,000 Level 3 Communications, Inc., 9.125% Sr
Note 5-1-2008......................... B 693,025 673,125
500,000 Metromedia Fiber Network, Inc., 10.00%
Sr Note 12-15-2009.................... B+ 496,153 492,500
500,000 Metromedia Fiber Network, Inc., 10.00%
Sr Note Ser B 11-15-2008.............. B+ 500,000 492,500
500,000 Spectrasite Holdings, Inc., 12.875% Sr
Disc Note 3-15-2010 (Zero coupon
through 3-15-2005, thereafter
12.875%) (e) (g)...................... B- 277,923 272,500
</TABLE>
43
<PAGE>
FORTIS SERIES FUND, INC.
HIGH YIELD SERIES (CONTINUED)
Schedule of Investments
June 30, 2000 (Unaudited)
CORPORATE BONDS-NON-INVESTMENT GRADE-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- -------- ----------- -----------
<C> <S> <C> <C> <C>
$ 250,000 Spectrasite Holdings, Inc., 13.05% Sr
Disc Note 3-15-2010 (Zero coupon
through 3-15-2005, thereafter
12.875%) (g).......................... B- $ 137,032 $ 136,250
1,250,000 Williams Communications Group, Inc.,
10.875% Sr Note 10-1-2009............. B+ 1,241,014 1,221,875
----------- -----------
6,003,126 5,862,500
----------- -----------
TELECOMMUNICATIONS CARRIERS-WIRED-11.81%
500,000 Allegiance Telecom, Inc., 12.875% Sr
Note 5-15-2008........................ NR 545,000 541,250
750,000 Focal Communications Corp., 11.875% Sr
Note 1-15-2010 (f).................... B 740,888 753,750
500,000 Hyperion Telecommunications, 12.25% Sr
Note Ser B 9-1-2004................... BB- 527,877 505,000
750,000 ICG Communications, Inc., 11.461% Sr
Disc Note 9-15-2005 (Zero Coupon until
9-15-2000, thereafter
13.50%) (e)(g)........................ NR 727,178 725,625
1,000,000 Intermedia Communications, Inc., 8.50%
Sr Note Ser B 1-15-2008............... B 992,675 920,000
500,000 Intermedia Communications, Inc., 9.03%
Sr Disc Note Ser B 7-15-2007 (Zero
coupon through 7-15-2002, thereafter
11.25%) (g)........................... B 446,709 392,500
1,000,000 Madison River Communications, 13.25% Sr
Note 3-1-2010 (f)..................... CCC+ 986,558 900,000
1,750,000 NEXTLINK Communications, 10.50% Sr Note
12-1-2009 (f)......................... B 1,750,000 1,706,250
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 596,596 575,000
500,000 RCN Corp., 10.125% Sr Note 1-15-2010.... B- 500,000 416,250
----------- -----------
7,813,481 7,435,625
----------- -----------
TELECOMMUNICATIONS
CARRIERS-WIRELESS-9.26%
1,000,000 Dobson Communications, 10.875% Sr Note
7-1-2010 (e).......................... NR 992,460 1,005,000
750,000 Grupo Iusacell S.A. de C.V., 14.25% Sr
Note 12-1-2006........................ B+ 772,612 783,750
750,000 Leap Wireless International, Inc.,
14.50% 4-15-2010 (Zero coupon through
4-15-2005, thereafter
14.50%) (e) (g)....................... CCC 385,324 315,000
750,000 Nextel Communications, Inc., 11.65% Sr
Disc Note 9-15-2007 (Zero coupon
through 9-15-2002, thereafter
10.65%) (g)........................... B 564,411 588,750
500,000 Nextel Communications, Inc., 9.375% Sr
Note 11-15-2009....................... B 479,375 477,500
650,000 Omnipoint Corp., 11.625% Sr Note Ser A
8-15-2006............................. CCC+ 635,009 702,000
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 1,970,386 1,957,500
----------- -----------
5,799,577 5,829,500
----------- -----------
TRAVELER ACCOMMODATION-1.96%
250,000 Boca Resorts, Inc., 9.875% Sr Sub Note
4-15 -2009............................ B- 250,000 234,375
1,000,000 Park Place Entertainment Corp., 9.375%
Sr Sub Note 2-15-2007................. NR 985,106 1,000,000
----------- -----------
1,235,106 1,234,375
----------- -----------
WASTE TREATMENT AND DISPOSAL-0.62%
375,000 Norcal Waste Systems, Inc., 13.50% Sr
Note Ser B 11-15-2005................. BB- 367,789 390,000
----------- -----------
WATER, SEWAGE AND OTHER SYSTEMS-1.53%
1,000,000 Azurix Corp., 10.75% Sr Note
2-15-2010 (f)......................... BB 1,003,030 962,500
----------- -----------
TOTAL CORPORATE BONDS - NON-INVESTMENT
GRADE................................. $62,932,452 $58,525,720
=========== ===========
</TABLE>
44
<PAGE>
PREFERRED STOCKS-1.01%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
----------- ----------- -----------
<C> <S> <C> <C>
SUPPORT ACTIVITIES FOR MINING-1.01%
574,000 R&B Falcon Corp., 13.875% Cumm. Preferred
5-1-2009(Dividend is payable in kind)........... $ 527,810 $ 635,634
----------- -----------
</TABLE>
COMMON STOCKS AND WARRANTS-0.95%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
----------- ----------- -----------
<C> <S> <C> <C>
COMPUTER SYSTEMS DESIGN AND RELATED
SERVICES-0.37%
1,250 Splitrock Service (Warrants) (a) (e).... $ 15,398 $ 232,969
----------- -----------
MANUFACTURING-CUT AND SEW APPAREL -0.01%
250 Hosiery Corp. of America, Inc.
Class A (a) (e)....................... 4,230 10,000
----------- -----------
NEWSPAPER, PERIODICAL, BOOK AND DATABASE
PUBLISHERS-0.01%
2,217 Marvel Enterprises, Inc.
Class A (Warrants) (a)................ 149,757 1,317
3,755 Marvel Enterprises, Inc.
Class C (Warrants) (a)................ 507,310 3,050
----------- -----------
657,067 4,367
----------- -----------
TELECOMMUNICATIONS-OTHER-0.26%
250 @Track Communications.
Inc. (Warrants) (a) (e)............... 2,500 2,500
2,560 Powertel, Inc. (Warrants) (a) (e)....... 18,824 159,913
----------- -----------
21,324 162,413
----------- -----------
TELECOMMUNICATIONS
CARRIERS-WIRELESS-0.10%
3,300 Clearnet Communications,
Inc. (Warrants) (a) (e)............... 42,075 61,114
----------- -----------
SUPPORT ACTIVITIES FOR MINING-0.20%
250 R & B Falcon Corp. (Warrants) (a) (f)... 23,575 125,000
----------- -----------
TOTAL COMMON STOCKS AND WARRANTS........ 763,669 595,863
=========== ===========
TOTAL LONG-TERM INVESTMENTS............. $64,223,931 $59,757,217
=========== ===========
</TABLE>
SHORT-TERM INVESTMENTS-6.80%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
----------- -----------
<C> <S> <C>
CONSUMER LENDING-2.62%
$1,651,000 Associates Corp. Master Variable Rate Note, Current
rate -- 6.50%................................................. $ 1,651,000
-----------
DEPOSITORY CREDIT-BANKING-2.59%
1,627,668 U.S. Bank N.A. Money Market Variable Rate Time Deposit, Current
rate -- 6.43%................................................. 1,627,668
-----------
FEDERAL HOME LOAN MORTGAGE CORPORATION-1.59%
1,000,000 Federal Home Loan Mortgage Corp................................. 999,116
-----------
TOTAL SHORT-TERM INVESTMENTS.................................... 4,277,784
-----------
TOTAL INVESTMENTS IN SECURITIES (COST: $68,501,715) (b)......... $64,035,001
===========
</TABLE>
45
<PAGE>
FORTIS SERIES FUND, INC.
HIGH YIELD SERIES (CONTINUED)
Schedule of Investments
June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
(a) Presently non-income producing. For long-term debt securities, items
identified are in default as to payment of interest and/or principal.
(b) At June 30, 2000, the cost of securities for federal income tax purposes
was $68,501,715 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 1,085,780
Unrealized depreciation..................................... (5,552,494)
--------------------------------------------------------------------------
Net unrealized depreciation................................. $ (4,466,714)
--------------------------------------------------------------------------
</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 6.21% of total net assets as of June 30, 2000.
(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>
1998 250 @Track Communications, Inc. (Warrants) -
144A $ 2,500
1996-1998 3,033,461 Australis Media Ltd. due 2003 2,277,149
2000 500,000 Callahan Nordrhein-Westfalen due 2010 -
144A 500,000
1996 3,300 Clearnet Communications, Inc. (Warrants)
- 144A 42,075
2000 1,000,000 Dobson Communications due 2010 - 144A 992,460
2000 1,000,000 Exodus Communications, Inc. due 2009 -
144A 983,228
2000 250,000 Exodus Communications, Inc. due 2010 -
144A 250,000
1994 250,000 Hosiery Corp. of America, Inc. Class A -
144A 4,230
2000 375,000 IMPSAT Fiber Networks due 2005 - 144A 375,000
2000 750,000 Leap Wireless International, Inc. due
2010 - 144A 385,324
2000 1,000,000 Level 3 Communications, Inc. due 2010 -
144A 555,816
1997 2,560 Powertel, Inc. (Warrants) - 144A 18,824
2000 500,000 Spectrasite Holdings, Inc. due 2010 -
144A 277,923
1998 1,250 Splitrock Service (Warrants) - 144A 15,398
2000 750,000 Station Casinos, Inc. due 2010 - 144A 747,045
</TABLE>
The aggregate value of these securities at June 30, 2000, was $5,407,776,
which represents 8.59% 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 determined to be liquid. The aggregate value of
these securities at June 30, 2000, was $5,022,500, which represents 7.98%
of total net assets.
(g) The interest rates disclosed for these securities represents the effective
yield on the date of acquisition.
* Moody's Rating
46
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL ASSET ALLOCATION SERIES
Schedule of Investments
June 30, 2000 (Unaudited)
COMMON STOCKS-57.26%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
----------- ----------- -----------
<C> <S> <C> <C>
AUSTRALIA-1.08%
97,070 CSR Limited -- MANUFACTURING-OTHER
MISCELLANEOUS.............................. $ 234,403 $ 270,423
47,674 Westpac Banking Corp Ltd. -- COMMERCIAL
BANKING.................................... 300,404 344,912
----------- -----------
534,807 615,335
----------- -----------
BELGIUM-0.35%
3,320 Delhaize-Le Lion S.A. -- GROCERY STORES...... 252,310 199,386
----------- -----------
CANADA-1.23%
5,130 Potash Corp. of
Saskatchewan -- MANUFACTURING-AGRICULTURAL
CHEMICAL................................... 324,308 280,441
14,460 Telus Corp. -- TELECOMMUNICATIONS
CARRIERS-WIRED............................. 409,152 385,482
1,400 Telus Corp., Non Voting
Shares -- TELECOMMUNICATIONS
CARRIERS-WIRED............................. 39,581 37,274
----------- -----------
773,041 703,197
----------- -----------
DENMARK-0.29%
4,860 Danisco A/S -- MANUFACTURING-OTHER FOOD...... 212,085 162,990
----------- -----------
FRANCE-4.67%
4,640 Alcatel -- MANUFACTURING-COMMUNICATIONS
EQUIPMENT.................................. 214,425 305,571
8,680 Aventis S.A. -- MANUFACTURING-OTHER CHEMICAL
AND PREPARATION............................ 424,682 636,113
2,840 Groupe Danone -- MANUFACTURING-OTHER FOOD.... 383,361 378,416
2,210 LaFarge S.A. -- MANUFACTURING-CEMENT AND
CONCRETE PRODUCT........................... 190,267 172,446
3,830 Michelin (C.G.D.E.)
Class B -- MANUFACTURING-RUBBER PRODUCT.... 175,271 123,397
5,660 Pernod Ricard -- MANUFACTURING-BEVERAGE...... 382,736 309,263
4,763 Total Fina Elf -- MANUFACTURING-PETROLEUM AND
COAL PRODUCTS.............................. 481,649 733,269
----------- -----------
2,252,391 2,658,475
----------- -----------
GERMANY-2.01%
9,888 BASF AG -- MANUFACTURING-OTHER CHEMICAL AND
PREPARATION................................ 390,054 402,842
8,940 Bayer AG -- MANUFACTURING-BASIC CHEMICAL..... 378,836 343,652
6,520 E.On AG -- MANUFACTURING-OTHER
MISCELLANEOUS.............................. 349,549 315,628
2,100 Volkswagen AG -- MANUFACTURING-MOTOR
VEHICLE.................................... 81,725 81,126
----------- -----------
1,200,164 1,143,248
----------- -----------
HONG KONG-0.60%
105,380 Hong Kong Electric Holdings -- ELECTRIC
GENERATION, TRANSMISSION AND
DISTRIBUTION............................... 334,076 339,311
----------- -----------
IRELAND-0.92%
39,022 Bank of Ireland -- DEPOSITORY
CREDIT-BANKING............................. 346,819 245,197
46,793 Green Property plc -- ACTIVITIES RELATED TO
REAL ESTATE................................ 164,909 275,862
----------- -----------
511,728 521,059
----------- -----------
ITALY-1.28%
34,900 ENI S.p.A. -- OIL AND GAS EXTRACTION......... 184,634 202,403
79,193 Telecom Italia S.p.A. -- TELECOMMUNICATIONS
CARRIERS-WIRED............................. 344,205 527,605
----------- -----------
528,839 730,008
----------- -----------
JAPAN-7.67%
8,000 Daiichi Pharmaceutical Co.,
Ltd. -- MANUFACTURING-PHARMACEUTICAL AND
MEDICINE................................... 123,691 203,393
11,000 Fuji Photo Film -- MANUFACTURING-OTHER
MISCELLANEOUS.............................. 365,046 451,207
3,000 Fujitsu Ltd. -- MANUFACTURING-SEMICONDUCTOR,
ELECTRONIC COMPONENT....................... 98,750 104,059
36,000 Hitachi Ltd. -- MANUFACTURING-COMMUNICATIONS
EQUIPMENT.................................. 357,688 520,580
8,000 Matsushita
Elec -- MANUFACTURING -- COMMUNICATIONS
EQUIPMENT.................................. 206,457 207,929
24,000 Mitsubishi Electric Corp. -- OTHER ELECTRICAL
EQUIPMENT AND COMPONENT.................... 155,920 260,403
23,000 Mitsui & Co., Ltd. -- MISCELLANEOUS DURABLE
GOODS WHOLESALERS.......................... 170,294 176,078
71 Nippon Telegraph and Telephone
Corp. -- TELECOMMUNICATIONS
CARRIERS-WIRED............................. 638,470 946,174
5,000 Pioneer Electronic
Corp. -- MANUFACTURING-AUDIO AND VIDEO
EQUIPMENT.................................. 94,818 195,170
9,000 Sankyo Co.
Ltd. -- MANUFACTURING-PHARMACEUTICAL AND
MEDICINE................................... 208,828 203,723
15,000 Sumitomo Bank Ltd. -- DEPOSITORY
CREDIT-BANKING............................. 193,635 184,301
29,000 Sumitomo Marine and Fire -- INSURANCE
CARRIERS................................... 176,589 169,112
82,000 Tokyo Gas Co., Ltd. -- ELECTRIC GENERATION,
TRANSMISSION AND DISTRIBUTION.............. 183,009 230,953
25,000 Toppan Printing Co., Ltd. -- PRINTING AND
RELATED SUPPORT ACTIVITIES................. 295,173 265,110
</TABLE>
47
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL ASSET ALLOCATION SERIES (CONTINUED)
Schedule of Investments
June 30, 2000 (Unaudited)
COMMON STOCKS-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
----------- ----------- -----------
<C> <S> <C> <C>
22,000 Toshiba Corp. -- MANUFACTURING-SEMICONDUCTOR,
ELECTRONIC COMPONENT....................... $ 174,280 $ 248,891
----------- -----------
3,442,648 4,367,083
----------- -----------
NETHERLANDS-2.98%
4,540 Akzo Nobel N.V. -- MANUFACTURING-BASIC
CHEMICAL................................... 193,342 193,665
5,400 ING Groep N.V. -- INTERNATIONAL TRADE
FINANCING (FOREIGN BANKS).................. 211,127 366,491
13,136 Koninklijke (Royal) Philips Electronics
N.V. -- OTHER ELECTRICAL EQUIPMENT AND
COMPONENT.................................. 255,608 622,053
8,360 Royal Dutch Petroleum Co. NY
Shares -- MANUFACTURING-PETROLEUM AND COAL
PRODUCTS................................... 496,298 514,662
----------- -----------
1,156,375 1,696,871
----------- -----------
PORTUGAL-0.08%
2,484 Cimpor Cimentos De
Portugal -- MANUFACTURING-CEMENT AND
CONCRETE PRODUCT........................... 42,763 47,623
----------- -----------
SINGAPORE-0.16%
14,000 United Overseas Bank Ltd. -- DEPOSITORY
CREDIT-BANKING............................. 90,303 91,497
----------- -----------
SPAIN-1.48%
20,920 Iberdrola S.A. -- ELECTRIC GENERATION,
TRANSMISSION AND DISTRIBUTION.............. 305,901 270,727
26,401 Telefonica S.A. (a) -- TELECOMMUNICATIONS
RESELLERS.................................. 387,000 569,429
----------- -----------
692,901 840,156
----------- -----------
SWEDEN-0.70%
52,840 Nordic Baltic Holding AB -- OTHER FINANCIAL
INVESTMENT ACTIVITIES...................... 258,769 400,622
----------- -----------
SWITZERLAND-3.14%
145 Compagnie Financiere Richemont
AG -- MANUFACTURING-TOBACCO................ 205,765 391,903
217 Holderbank Financiere Glaris
AG -- MANUFACTURING-CEMENT AND CONCRETE
PRODUCT.................................... 193,329 266,896
329 Nestle S.A. -- MANUFACTURING-OTHER FOOD...... 649,015 660,589
670 Swisscom AG -- TELECOMMUNICATIONS
CARRIERS-WIRED............................. 201,664 232,796
1,590 UBS AG -- INTERNATIONAL TRADE
FINANCING (FOREIGN BANKS).................. 196,337 233,694
----------- -----------
1,446,110 1,785,878
----------- -----------
UNITED KINGDOM-9.94%
100,900 Allied Domecq
plc -- MANUFACTURING-BEVERAGE.............. 440,174 536,160
8,000 AstraZeneca Group
plc -- MANUFACTURING-PHARMACEUTICAL AND
MEDICINE................................... 346,643 373,751
22,700 BAA plc -- SCHEDULED AIR TRANSPORTATION...... 144,829 180,590
54,500 BAE SYSTEMS plc -- MANUFACTURING-AEROSPACE
PRODUCT AND PARTS.......................... 267,182 339,724
55,203 Blue Circle Industries
plc -- MANUFACTURING-CEMENT AND CONCRETE
PRODUCT.................................... 286,017 357,687
28,000 British Telecommunications
plc -- TELECOMMUNICATIONS CARRIERS-WIRED... 448,072 362,003
10,608 Burmah Castrol plc -- MANUFACTURING-PETROLEUM
AND COAL PRODUCTS.......................... 151,068 267,719
82,200 Cadbury Schweppes
plc -- MANUFACTURING-BEVERAGE.............. 492,805 540,080
41,400 Diageo plc -- MANUFACTURING-BEVERAGE......... 293,082 370,725
9,200 Granada Group plc -- OTHER AMUSEMENT AND
RECREATION INDUSTRIES...................... 90,157 90,531
27,100 Great Universal Stores plc -- ELECTRONIC
SHOPPING AND MAIL-ORDER HOUSES............. 219,033 169,337
34,500 Imperial Tobacco Group
plc -- MANUFACTURING-TOBACCO............... 266,372 329,829
52,800 Mathews (Bernard) plc -- ANIMAL SLAUGHTERING
AND PROCESSING............................. 81,866 114,305
32,742 Reckitt Benckiser plc -- MANUFACTURING-SOAP,
CLEANING COMPOUND, TOILET.................. 367,631 363,829
54,222 Royal & Sun Alliance Insurance Group
plc -- INSURANCE CARRIERS.................. 474,394 350,715
64,041 Sainsbury (J) plc -- GROCERY STORES.......... 354,819 289,885
31,700 Vodafone AirTouch plc -- TELECOMMUNICATIONS
CARRIERS-WIRELESS.......................... 158,963 128,134
33,750 WPP Group plc -- ADVERTISING AND RELATED
SERVICES................................... 297,264 493,058
----------- -----------
5,180,371 5,658,062
----------- -----------
UNITED STATES-18.68%
19,293 Albertson's, Inc. -- GROCERY STORES.......... 798,738 641,492
17,000 Alcoa, Inc. -- ALUMINA AND ALUMINUM
PRODUCTION AND PROCESSING.................. 520,304 493,000
2,100 American Home Products
Corp. -- MANUFACTURING-PHARMACEUTICAL AND
MEDICINE................................... 94,915 123,375
9,100 BJ's Wholesale Club, Inc. (a) -- OTHER
GENERAL MERCHANDISE STORES................. 189,661 300,300
12,780 Boise Cascade Corp. -- PAPER AND PAPER
PRODUCT MERCHANT WHOLESALERS............... 371,345 330,682
7,800 Borg-Warner Automotive,
Inc. -- MANUFACTURING-MOTOR VEHICLE
PARTS...................................... 290,126 273,975
3,200 Bristol-Myers Squibb
Co. -- MANUFACTURING-PHARMACEUTICAL AND
MEDICINE................................... 184,537 186,400
20,410 Cadiz, Inc. -- LAND SUBDIVISION AND LAND
DEVELOPMENT................................ 219,681 163,280
</TABLE>
48
<PAGE>
COMMON STOCKS-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
----------- ----------- -----------
<C> <S> <C> <C>
14,582 Chase Manhattan Corp. -- DEPOSITORY
CREDIT-BANKING............................. $ 701,026 $ 671,683
9,760 Comsat Corp. -- MANUFACTURING-COMMUNICATIONS
EQUIPMENT.................................. 252,837 240,950
2,020 Deere & Co. -- AGRICULTURE, CONSTRUCTION AND
MINING MACHINERY........................... 85,400 74,740
3,750 First Data Corp. -- DATA PROCESSING, HOSTING
AND RELATED SERVICES....................... 181,643 186,093
14,410 Fort James Corp. -- MILLS-PULP, PAPER AND
PAPERBOARD................................. 377,532 333,231
7,920 General Dynamics
Corp. -- MANUFACTURING-AEROSPACE PRODUCT
AND PARTS.................................. 428,433 413,820
11,600 GenRad, Inc. (a) -- NAVIGATIONAL, MEASURING
AND CONTROL INSTRUMENTS.................... 169,303 104,400
6,670 Georgia-Pacific
Group -- MANUFACTURING-CONVERTED PAPER
PRODUCT.................................... 198,060 175,087
6,940 Goodrich (B.F.)
Co. -- MANUFACTURING-AEROSPACE PRODUCT AND
PARTS...................................... 277,365 236,393
9,520 GTE Corp. -- TELECOMMUNICATIONS
CARRIERS-WIRED............................. 679,274 592,620
1,770 Honeywell International,
Inc. -- MANUFACTURING-AEROSPACE PRODUCT AND
PARTS...................................... 88,709 59,626
6,130 Houghton Mifflin Co. -- NEWSPAPER,
PERIODICAL, BOOK AND DATABASE PUBLISHERS... 180,496 286,194
6,970 MBIA, Inc. -- INSURANCE CARRIERS............. 361,810 335,866
14,060 Mellon Financial Corp. -- DEPOSITORY
CREDIT-BANKING............................. 404,634 512,311
9,500 MetLife, Inc. (a) -- INSURANCE CARRIERS...... 135,375 200,093
9,700 NCR Corp. (a) -- DATA PROCESSING, HOSTING AND
RELATED SERVICES........................... 310,049 377,693
4,460 New York Times Co. Class A -- NEWSPAPER,
PERIODICAL, BOOK AND DATABASE PUBLISHERS... 181,248 176,170
6,211 Pharmacia
Corp. -- MANUFACTURING-PHARMACEUTICAL AND
MEDICINE................................... 178,081 321,031
32,480 Philip Morris Companies,
Inc. -- MANUFACTURING-TOBACCO.............. 1,459,857 862,750
3,500 Rockwell International
Corp. -- MANUFACTURING-OTHER GENERAL
PURPOSE MACHINERY.......................... 124,710 110,250
11,770 SBC Communications,
Inc. -- TELECOMMUNICATIONS-OTHER........... 510,353 509,052
12,750 Sears, Roebuck & Co. -- DEPARTMENT STORES.... 477,337 415,968
10,300 Tupperware Corp. -- MANUFACTURING-PLASTICS
PRODUCT.................................... 269,248 226,600
11,780 U.S. Bancorp -- DEPOSITORY CREDIT-BANKING.... 373,497 226,765
12,200 Unicom Corp. -- ELECTRIC GENERATION,
TRANSMISSION AND DISTRIBUTION.............. 460,863 472,032
----------- -----------
11,536,447 10,633,922
----------- -----------
TOTAL COMMON STOCKS.......................... $30,446,128 $32,594,723
=========== ===========
</TABLE>
PREFERRED STOCKS-0.13%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
----------- ----------- -----------
<C> <S> <C> <C>
GERMANY-0.13%
3,100 Volkswagen AG
Preferred -- MANUFACTURING-MOTOR VEHICLE... $ 149,605 $ 73,994
----------- -----------
</TABLE>
ASSET BACKED SECURITIES-0.15%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
------------ -------- ----------- -----------
<C> <S> <C> <C> <C>
UNITED STATES-0.15%
$ 80,000 MBNA Master Credit Card Trust, Series
2000-E Class A, 7.80% 10-15-2012...... AAA $ 79,759 $ 82,648
----------- -----------
</TABLE>
CORPORATE BONDS-INVESTMENT GRADE-30.92%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount (f) Rating Cost (b)(f) Value (c)(f)
------------- -------- ----------- ------------
<C> <S> <C> <C> <C>
AUSTRALIA-0.17%
$ 100,000 Republic of Austria (European Monetary
Unit), 5.50% Note 10-20-2007.......... AAA $ 89,435 $ 95,955
----------- -----------
</TABLE>
49
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL ASSET ALLOCATION SERIES (CONTINUED)
Schedule of Investments
June 30, 2000 (Unaudited)
CORPORATE BONDS-INVESTMENT GRADE-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount (f) Rating Cost (b)(f) Value (c)(f)
------------- -------- ----------- ------------
<C> <S> <C> <C> <C>
DENMARK-2.12%
5,800,000 Kingdom of Denmark (Danish Krone), 7.00%
12-15-2004............................ AAA $ 912,888 $ 779,384
3,000,000 Kingdom of Denmark (Danish Krone), 8.00%
3-15-2006............................. AAA 499,203 425,306
----------- -----------
1,412,091 1,204,690
----------- -----------
FRANCE-2.80%
750,000 Government of France (European Monetary
Unit), 5.25% 4-25-2008................ AAA 754,660 717,847
900,000 Government of France (European Monetary
Unit), 5.50% 10-25-2007............... AAA 926,479 875,029
----------- -----------
1,681,139 1,592,876
----------- -----------
GERMANY-7.33%
1,250,000 Bundesobligation Deutschland (European
Monetary Unit) 5.00% 8-20-2001........ AAA 1,209,326 1,199,746
600,000 Bundesrepublik Deutschland (European
Monetary Unit), 6.50% 10-14-2005...... AAA 749,699 609,649
1,650,000 Bundesrepublik Deutschland (European
Monetary Unit), 6.50% 7-4-2027........ Aaa* 2,098,574 1,783,197
250,000 Deutsche Ausgleichsbank (European
Monetary Unit), 4.00% 7-4-2009........ Aaa* 267,362 210,768
260,000 Deutsche Ausgleichsbank (US Dollar),
5.125% 9-22-2003...................... AAA 259,809 244,089
150,000 Philip Morris Financial (European
Monetary Unit), 4.50% 4-6-2006........ Aaa* 148,159 128,821
----------- -----------
4,732,929 4,176,270
----------- -----------
ITALY-0.78%
40,000,000 Republic of Italy (Japanese Yen), 5.00%
12-15-2004............................ AA 456,508 442,693
----------- -----------
JAPAN-6.27%
63,000,000 Int'l Bank Reconstruction &
Development (Japanese Yen), 4.75%
12-20-2004............................ AAA 629,998 693,562
56,000,000 Japan Development Bank (Japanese Yen),
6.50% 9-20-2001....................... AAA 567,110 568,561
260,000,000 Japan JGB #207A (Japanese Yen), 0.90%
12-22-2008............................ AAA 2,144,469 2,307,282
----------- -----------
3,341,577 3,569,405
----------- -----------
NETHERLANDS-0.71%
100,000 ABN AMRO Bank N.V.(European Monetary
Unit), 4.625% 5-12-2009............... AA- 85,275 85,554
100,000 Deutsche Telekom Finance (US Dollar),
8.00% 6-15-2010....................... 99,657 100,808
150,000 Mannesmann Finance N.V.(European
Monetary Unit), 4.75% 5-27-2009....... BBB+ 145,646 125,562
100,000 SNS Bank Nederland (European Monetary
Unit), 6.125% 4-7-2010................ A 96,320 95,241
----------- -----------
426,898 407,165
----------- -----------
SWEDEN-0.66%
3,200,000 Swedish Government (Swedish Krona),
6.00% 2-9-2005........................ AAA 408,876 374,864
----------- -----------
UNITED KINGDOM-4.19%
100,000 Abbey National plc (US Dollar), 7.95%
10-26-2029............................ AA- 99,628 98,684
150,000 British American Tobacco plc (European
Monetary Unit), 4.875% 2-25-2009...... A 142,361 121,779
150,000 Burmah Castrol plc (European Monetary
Unit), 4.875% 3-31-2009............... A 147,148 131,735
130,000 Halifax plc (US Dollar), 6.00%
2-26-2008............................. AA 129,340 120,331
100,000 Royal Bank of Scotland plc (US Dollar),
9.118% 3-31-2049...................... A- 100,000 102,176
550,000 United Kingdom Treasury (British Pound),
8.00% 12-7-2000....................... AAA 893,190 839,721
150,000 United Kingdom Treasury (British Pound),
8.00% 6-10-2003....................... AAA 258,726 239,529
300,000 United Kingdom Treasury (British Pound),
8.50% 7-16-2007....................... AAA 608,835 532,196
200,000 Vodafone Airtouch plc (US Dollar), 7.75%
2-15-2010 (e)......................... A- 198,794 198,290
----------- -----------
2,578,022 2,384,441
----------- -----------
UNITED STATES-5.89%
$ 100,000 Abbey National Cap Trust I, 8.96%
12-29-2049............................ A+ 100,000 99,307
70,000 Ahold Finance USA, Inc., 6.875%
5-1-2029.............................. A- 69,764 58,602
100,000 Ameritech Capital Funding, 6.25%
5-18-2009............................. AA+ 99,259 90,544
150,000 Associates Corp. NA, 6.00% 7-15-2005.... A+ 149,700 139,318
90,000 AT&T Corp., 6.50% 3-15-2029............. AA- 89,174 75,375
150,000 AXA Financial Inc., 7.00% 4-1-2028...... A+ 133,178 131,559
170,000 Bank of America Corp., 5.875%
2-15-2009............................. A+ 154,886 150,145
230,000 Citicorp (German Deutschmark), 5.50%
6-30-2010............................. A+ 127,579 103,904
150,000 Conoco, Inc., 6.95% Sr Note 4-15-2029... A- 150,000 136,706
100,000 DaimlerChrysler N.A., 8.00% Global Note
6-15-2010............................. A+ 99,862 101,723
</TABLE>
50
<PAGE>
CORPORATE BONDS-INVESTMENT GRADE-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount (f) Rating Cost (b)(f) Value (c)(f)
------------- -------- ----------- ------------
<C> <S> <C> <C> <C>
$ 90,000 Dresdner Funding Trust II (European
Monetary Unit), 5.79%
6-30-2011 (e)......................... A+ $ 96,075 $ 78,913
150,000 Farmers Exchange Capital, 7.05% Note
7-15-2028 (e)......................... A+ 137,750 120,322
80,000 Floridia Windstorm, 7.125%
2-25-2019 (e)......................... AAA 79,574 73,189
160,000 Ford Motor Co., 6.375% Deb 2-1-2029..... A 158,138 130,594
100,000 General Electric Capital Corp., 7.375%
Medium Term Note 1-19-2010............ AAA 99,278 100,943
130,000 General Electric Capital Corp., 8.125%
2-23-2007............................. AAA 144,464 134,719
150,000 General Motors Acceptance Corp., 7.75%
Global Note 1-19-2010................. A 149,820 149,113
100,000 Household Finance Corp., 6.375%
8-1-2010.............................. A 98,866 88,264
100,000 HSBC Capital Funding, 10.675%........... A1* 100,000 107,028
120,000 Merrill Lynch & Co., 6.875%
11-15-2018............................ AA- 119,434 106,431
100,000 Met Life Insurance, 7.45% Note
11-1-2023 (e)......................... A+ 101,338 87,711
150,000 Monsanto Co., 6.60% 12-1-2028........... AA- 149,470 132,264
100,000 Nationwide Mutual Insurance, 7.50% Note
2-15-2024 (e)......................... A 101,893 84,526
250,000 Procter & Gamble Co., 6.60% Deb
12-15-2004............................ AA 249,610 245,655
150,000 Prudential Insurance Co., 8.30% Notes
7-1-2025.............................. A- 153,840 151,644
150,000 Wal-Mart Stores, 6.875% Bond
8-10-2009............................. AA 149,450 146,679
200,000 Wells Fargo Co., 6.625% 7-15-2004....... A+ 199,908 195,085
150,000 WorldCom Inc., 6.95% Sr Note
8-15-2028............................. A- 134,233 132,554
----------- -----------
3,596,543 3,352,817
----------- -----------
TOTAL CORPORATE BONDS - INVESTMENT
GRADE................................. $18,724,018 $17,601,176
=========== ===========
</TABLE>
U.S. GOVERNMENT SECURITIES-4.46%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount (f) Cost (b)(f) Value (c)(f)
------------ ----------- ------------
<C> <S> <C> <C>
FEDERAL HOME LOAN MORTGAGE CORPORATION-0.51%
NOTES:
$ 300,000 5.75% 2003.................................... $ 300,821 $ 289,788
----------- -----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION-0.59%
NOTES:
200,000 5.75% 2005.................................... 200,215 189,516
250,000 6.50% 2002 (Australian Dollar)................ 182,854 149,701
----------- -----------
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION... 383,069 339,217
----------- -----------
U.S. TREASURY SECURITIES-3.36%
BONDS:
450,000 8.125% 2019................................... 510,688 542,812
----------- -----------
NOTES:
500,000 6.25% 2001.................................... 497,640 498,281
600,000 6.50% 2005.................................... 596,992 606,375
250,000 7.875% 2004................................... 279,998 264,612
----------- -----------
TOTAL U.S. TREASURY SECURITIES................ 1,374,630 1,369,268
----------- -----------
TOTAL U.S. GOVERNMENT SECURITIES.............. 2,569,208 2,541,085
=========== ===========
TOTAL LONG-TERM INVESTMENTS................... $51,968,718 $52,893,626
=========== ===========
</TABLE>
51
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL ASSET ALLOCATION SERIES (CONTINUED)
Schedule of Investments
June 30, 2000 (Unaudited)
SHORT-TERM INVESTMENTS-4.29%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
------------ -----------
<C> <S> <C>
DEPOSITORY CREDIT-BANKING-4.29%
$ 2,444,533 U.S. Bank N.A. Money Market Variable Rate Time Deposit,
Current rate -- 6.42%..................................... $ 2,444,533
-----------
TOTAL INVESTMENTS IN SECURITIES (COST: $54,413,251) (b)..... $55,338,159
===========
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 2000, the cost of securities for federal income tax purposes
was $54,660,463 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 4,680,175
Unrealized depreciation..................................... (4,002,479)
-------------------------------------------------------------------------
Net unrealized appreciation................................. $ 677,696
-------------------------------------------------------------------------
</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>
Date Acquired Shares/Par Security Cost Basis
------------- ---------- -------- ----------
<S> <C> <C> <C>
1999 90,000 Dresdner Funding Trust II due 2011 -
144A $ 96,075
1999 150,000 Farmers Exchange Capital due 2028 - 144A 137,750
1999 80,000 Florida Windstorm due 2019 - 144A 79,574
1998 100,000 Met Life Insurance due 2023 - 144A 101,338
1998 100,000 Nationwide Mutual Insurance due 2024 -
144A 101,893
2000 200,000 Vodafone Airtouch plc due 2010 - 144A 198,794
</TABLE>
The aggregate value of these securities at June 30, 2000, was $642,951,
which represents 1.13% of total net assets.
(f) Cost and market value are stated in U.S. dollars; principal amount is
stated in the currency indicated.
* Moody's Rating
52
<PAGE>
FORTIS SERIES FUND, INC.
ASSET ALLOCATION SERIES
Schedule of Investments
June 30, 2000 (Unaudited)
COMMON STOCKS-64.00%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
ADVERTISING AND RELATED SERVICES - 2.06%
177,000 Interpublic Group of Companies, Inc. $ 6,649,782 $ 7,611,000
111,000 Young & Rubicam, Inc......................... 5,846,307 6,347,812
------------ ------------
12,496,089 13,958,812
------------ ------------
AGENCIES, BROKERAGE AND OTHER INSURANCE
ACTIVITIES - 0.34%
22,000 Marsh & McLennan Companies, Inc. 1,652,341 2,297,625
------------ ------------
CABLE AND OTHER SUBSCRIPTION PROGRAMMING -
0.31%
96,000 USA Networks, Inc. (a)....................... 2,235,283 2,076,000
------------ ------------
COMPUTER SYSTEMS DESIGN AND RELATED SERVICES
- 0.52%
66,000 Automatic Data Processing, Inc............... 3,379,851 3,535,125
------------ ------------
CONSUMER LENDING - 0.28%
45,000 Household International, Inc................. 2,121,853 1,870,312
------------ ------------
DATA PROCESSING, HOSTING AND RELATED SERVICES
- 0.28%
38,000 First Data Corp.............................. 2,115,034 1,885,750
------------ ------------
DEPARTMENT STORES - 0.83%
50,000 Kohl's Corp. (a)............................. 244,894 2,781,250
88,000 Sears, Roebuck & Co.......................... 3,280,992 2,871,000
------------ ------------
3,525,886 5,652,250
------------ ------------
DEPOSITORY CREDIT-BANKING - 0.89%
46,000 Bank of New York Co., Inc.................... 2,161,885 2,139,000
65,000 Citigroup, Inc............................... 3,339,066 3,916,250
------------ ------------
5,500,951 6,055,250
------------ ------------
DRUGS AND DRUGGISTS SUNDRIES WHOLESALERS -
0.83%
76,000 Cardinal Health, Inc......................... 4,816,850 5,624,000
------------ ------------
ELECTRIC GENERATION, TRANSMISSION AND
DISTRIBUTION - 1.33%
198,000 AES Corp. (a)................................ 4,274,059 9,033,750
------------ ------------
GENERAL MEDICAL AND SURGICAL HOSPITALS -
1.09%
244,000 HCA - The Healthcare Co...................... 6,394,101 7,411,500
------------ ------------
GROCERY STORES - 0.77%
115,500 Safeway, Inc. (a)............................ 4,425,163 5,211,938
------------ ------------
INSURANCE CARRIERS - 3.43%
220,000 Ace Ltd...................................... 4,986,280 6,160,000
52,000 American International Group, Inc............ 4,479,219 6,110,000
40,500 Hartford Financial Services Group, Inc....... 2,250,180 2,265,468
136,000 MetLife, Inc. (a)............................ 2,184,160 2,864,500
27,000 UnitedHealth Group, Inc...................... 2,209,566 2,315,250
178,000 UnumProvident Corp........................... 3,654,458 3,571,125
------------ ------------
19,763,863 23,286,343
------------ ------------
MANUFACTURING-AEROSPACE PRODUCT AND PARTS -
0.69%
140,000 Honeywell International, Inc................. 7,366,672 4,716,250
------------ ------------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
MANUFACTURING-BEVERAGE - 1.36%
105,000 PepsiCo, Inc................................. $ 4,426,506 $ 4,665,938
78,600 Seagram Ltd.................................. 4,850,268 4,558,800
------------ ------------
9,276,774 9,224,738
------------ ------------
MANUFACTURING-COMMUNICATIONS EQUIPMENT -
1.30%
23,000 ADC Telecommunications, Inc. (with
rights) (a)................................ 1,627,648 1,929,125
54,000 Cisco Systems, Inc. (a)...................... 2,681,232 3,432,375
19,712 General Motors Corp. Class H................. 1,440,276 1,729,728
38,400 Sonera Oyj Corp. ADR......................... 1,029,975 1,766,400
------------ ------------
6,779,131 8,857,628
------------ ------------
MANUFACTURING-COMPUTER AND PERIPHERAL
EQUIPMENT - 0.88%
22,000 Hewlett-Packard Co........................... 2,466,009 2,747,250
35,000 Integrated Device Technology, Inc. (a) 2,170,798 2,095,625
12,300 Sun Microsystems, Inc. (a)................... 484,281 1,118,531
------------ ------------
5,121,088 5,961,406
------------ ------------
MANUFACTURING-CUTLERY AND HANDTOOL - 0.48%
93,000 Gillette Co.................................. 3,164,716 3,249,187
------------ ------------
MANUFACTURING-ELECTROMEDICAL - 0.60%
81,600 Medtronic, Inc. (with rights)................ 2,479,774 4,064,700
------------ ------------
MANUFACTURING-INDUSTRIAL MACHINERY - 0.52%
15,000 Applied Materials, Inc. (a).................. 1,554,504 1,359,376
38,000 Novellus Systems, Inc. (a)................... 2,513,381 2,149,375
------------ ------------
4,067,885 3,508,751
------------ ------------
MANUFACTURING-MEDICAL EQUIPMENT AND SUPPLIES
- 0.33%
32,000 Baxter International, Inc. (with rights) 2,281,632 2,250,000
------------ ------------
MANUFACTURING-OTHER FOOD - 0.97%
126,000 Nabisco Holdings Corp. Class A............... 5,647,989 6,615,000
------------ ------------
MANUFACTURING-OTHER MISCELLANEOUS - 0.62%
80,000 General Electric Co.......................... 3,592,962 4,240,000
------------ ------------
MANUFACTURING-PETROLEUM AND COAL PRODUCTS -
3.80%
113,160 BP Amoco plc ADR............................. 5,918,059 6,400,613
84,000 Coastal Corp................................. 4,622,913 5,113,500
38,000 Exxon Mobil Corp............................. 2,762,385 2,983,000
85,000 Phillips Petroleum Co........................ 3,804,932 4,308,438
94,800 Texaco, Inc.................................. 5,408,518 5,048,100
58,000 Unocal Corp.................................. 1,954,075 1,921,250
------------ ------------
24,470,882 25,774,901
------------ ------------
MANUFACTURING-PHARMACEUTICAL AND MEDICINE -
7.06%
106,000 Abbott Laboratories.......................... 4,510,040 4,723,626
89,800 ALZA Corp. (a)............................... 3,897,364 5,309,425
136,000 American Home Products Corp.................. 6,730,770 7,990,000
37,400 Amgen, Inc. (with rights) (a)................ 1,816,813 2,627,350
98,000 Biovail Corp. (a)............................ 5,124,238 5,432,875
</TABLE>
53
<PAGE>
FORTIS SERIES FUND, INC.
ASSET ALLOCATION SERIES (CONTINUED)
Schedule of Investments
June 30, 2000 (Unaudited)
COMMON STOCKS-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
59,100 Lilly (Eli) & Co............................. $ 5,249,760 $ 5,902,611
123,750 Pfizer, Inc. (with rights)................... 3,956,418 5,940,000
98,000 Pharmacia Corp............................... 5,457,805 5,065,375
98,000 Schering-Plough Corp......................... 4,404,796 4,949,000
------------ ------------
41,148,004 47,940,262
------------ ------------
MANUFACTURING-SEMICONDUCTOR, ELECTRONIC
COMPONENT - 3.99%
10,300 E-Tek Dynamics, Inc. (a)..................... 2,421,096 2,717,268
37,500 Intel Corp................................... 4,582,976 5,013,281
50,300 JDS Uniphase Corp. (a)....................... 1,466,884 6,029,712
52,000 Micron Technology, Inc. (a).................. 4,571,614 4,579,250
127,500 Texas Instruments, Inc....................... 4,754,249 8,757,656
------------ ------------
17,796,819 27,097,167
------------ ------------
MANUFACTURING-SOAP, CLEANING COMPOUND, TOILET
- 0.78%
88,000 Colgate-Palmolive Co......................... 3,930,848 5,269,000
------------ ------------
MANUFACTURING-TOBACCO - 0.96%
244,500 Philip Morris Companies, Inc................. 5,574,356 6,494,531
------------ ------------
MOTION PICTURE AND VIDEO INDUSTRIES - 3.44%
236,000 AT&T Corp. - Liberty Media Group
Class A (a)................................ 3,840,571 5,723,000
178,200 Disney (Walt) Co............................. 5,296,118 6,916,388
157,265 Viacom, Inc. Class B (a)..................... 6,259,705 10,723,507
------------ ------------
15,396,394 23,362,895
------------ ------------
NATURAL GAS DISTRIBUTION - 1.31%
138,000 Enron Corp................................... 4,400,661 8,901,000
------------ ------------
NAVIGATIONAL, MEASURING AND CONTROL
INSTRUMENTS - 0.67%
69,100 PE Corp. - PE Biosystems Group............... 1,814,031 4,551,962
------------ ------------
NEWSPAPER, PERIODICAL, BOOK AND DATABASE
PUBLISHERS - 1.48%
120,000 PRIMEDIA, Inc. (a)........................... 3,203,122 2,730,000
185,000 Reader's Digest Association, Inc. Class A.... 5,675,830 7,353,750
------------ ------------
8,878,952 10,083,750
------------ ------------
NONDEPOSITORY CREDIT BANKING - 0.76%
57,300 American Express Co.......................... 2,413,107 2,986,763
96,000 Associates First Capital Corp. Class A....... 2,441,808 2,142,000
------------ ------------
4,854,915 5,128,763
------------ ------------
OIL AND GAS EXTRACTION - 1.71%
54,000 Devon Energy Corp............................ 3,177,506 3,034,125
174,000 EOG Resources, Inc........................... 4,528,327 5,829,000
192,000 Ocean Energy, Inc............................ 2,909,494 2,724,000
------------ ------------
10,615,327 11,587,125
------------ ------------
OTHER ELECTRICAL EQUIPMENT AND COMPONENT -
1.53%
23,400 CIENA Corp. (a).............................. 1,599,253 3,900,488
24,000 Corning, Inc................................. 2,508,245 6,477,000
------------ ------------
4,107,498 10,377,488
------------ ------------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
OTHER GENERAL MERCHANDISE STORES - 0.59%
70,000 Wal-Mart Stores, Inc......................... $ 2,423,723 $ 4,033,750
------------ ------------
OTHER INFORMATION SERVICES - 0.29%
16,000 Yahoo!, Inc. (a)............................. 2,077,309 1,982,000
------------ ------------
OTHER INVESTMENT POOLS AND FUNDS - 0.23%
34,400 CMGI, Inc. (a)............................... 2,346,900 1,575,950
------------ ------------
PIPELINE TRANSPORTATION OF NATURAL GAS -
1.39%
138,600 Dynegy, Inc. Class A......................... 4,469,229 9,468,113
------------ ------------
RADIO AND TELEVISION BROADCASTING - 1.17%
66,500 AMFM, Inc. (a)............................... 3,432,739 4,588,500
49,000 Grupo Televisa S.A. GDR (a).................. 3,307,740 3,377,937
------------ ------------
6,740,479 7,966,437
------------ ------------
SCIENTIFIC RESEARCH AND DEVELOPMENT SERVICES
- 1.97%
54,500 Genentech, Inc. (a).......................... 5,038,397 9,374,000
60,000 Immunex Corp. (a)............................ 2,518,410 2,966,250
10,800 PE Corp. - Celera Genomics (a)............... 2,219,107 1,009,800
------------ ------------
9,775,914 13,350,050
------------ ------------
SECURITIES AND COMMODITY CONTRACTS AND
BROKERAGE - 0.76%
62,000 Morgan Stanley Dean Witter & Co.............. 4,096,879 5,161,500
------------ ------------
SOFTWARE PUBLISHERS - 1.39%
31,000 Adobe Systems, Inc........................... 3,641,228 4,030,000
68,000 Microsoft Corp. (a).......................... 7,226,037 5,440,000
------------ ------------
10,867,265 9,470,000
------------ ------------
SUPPORT ACTIVITIES FOR MINING - 2.63%
45,000 BJ Services Co. (a).......................... 2,226,766 2,812,500
53,000 Cooper Cameron Corp. (a)..................... 3,931,737 3,498,000
82,000 ENSCO International, Inc..................... 2,756,394 2,936,625
76,000 Global Marine, Inc. (a)...................... 2,115,202 2,142,250
59,000 Halliburton Co............................... 2,822,528 2,784,062
49,000 Schlumberger Ltd............................. 3,251,013 3,656,625
------------ ------------
17,103,640 17,830,062
------------ ------------
TELECOMMUNICATIONS-OTHER - 2.38%
250 @Track Communications. Inc. (Warrants) (a)
(e)........................................ 4,547 2,500
63,000 Nextel Communications, Inc. Class A (a)...... 1,930,427 3,854,812
37,800 Nortel Networks Corp......................... 1,071,937 2,579,850
112,000 Qwest Communications International,
Inc. (a)................................... 5,511,441 5,565,000
36,000 VoiceStream Wireless Corp. (a)............... 2,005,563 4,186,687
------------ ------------
10,523,915 16,188,849
------------ ------------
TELECOMMUNICATIONS CARRIERS-WIRED - 1.21%
76,000 AT&T Corp.................................... 2,717,794 2,403,500
114,200 Bell Atlantic Corp........................... 7,148,619 5,802,788
------------ ------------
9,866,413 8,206,288
------------ ------------
</TABLE>
54
<PAGE>
COMMON STOCKS-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
TELECOMMUNICATIONS CARRIERS-WIRELESS - 0.55%
1,000 Adelphia Business Solutions,
Inc. (Warrants) (a) (e).................... $ 4,022 $ 275,000
82,800 Vodafone AirTouch plc ADR.................... 2,211,867 3,431,025
------------ ------------
2,215,889 3,706,025
------------ ------------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
TELECOMMUNICATIONS RESELLERS - 0.53%
63,000 Telefonos de Mexico S.A. ADR Class L $ 4,091,425 $ 3,598,875
------------ ------------
TOY MANUFACTURING - 0.71%
367,000 Mattel, Inc.................................. 4,394,701 4,839,812
------------ ------------
TOTAL COMMON STOCKS.......................... $356,462,315 $434,532,870
============ ============
</TABLE>
ASSET BACKED SECURITIES - 2.18%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- -------- ------------ ---------------
<C> <S> <C> <C> <C>
CAPTIVE AUTO FINANCE - 0.00%
$ 35,668 Fifth Third Auto Grantor Trust,
6.70% Ser 1996-B Class B
3-15-2002......................... A $ 35,660 $ 35,628
------------ --------------
CAPTIVE RETAIL FINANCE - 1.16%
860,000 J.P. Morgan Commercial Mortgage
Finance Corp., 7.48% Variable Rate
Ser 1997-C4 Class B 12-26-2028 AA 866,256 853,898
4,000,000 Sears Credit Account Master Trust,
6.40% Ser 1997-1 Class B
7-16-2007......................... A 3,887,037 3,900,120
3,000,000 Standard Credit Card Master Trust,
8.45% Ser 1995-1 Class B
1-7-2007.......................... A 3,167,398 3,104,301
------------ --------------
7,920,691 7,858,319
------------ --------------
COMMERCIAL BANKING - 0.61%
308,153 Merrill Lynch Mortgage Investors,
Inc., 6.81% Variable Rate Ser
1995-C2 Class A1 6-15-2021........ Aaa* 312,251 304,952
1,600,000 Merrill Lynch Mortgage Investors,
Inc., 7.42% Ser 1996-C1 Class B
4-25-2028......................... AA 1,602,405 1,582,736
1,200,000 Midland Realty Acceptance Corp.,
7.73% Variable Rate Ser 1996-C1
Class B 8-25-2028................. AA 1,211,617 1,202,164
1,000,000 Mortgage Capital Funding, Inc.,
7.90% Ser 1996-MC1 Class B
2-15-2006......................... AA+ 1,006,940 1,022,180
------------ --------------
4,133,213 4,112,032
------------ --------------
HOME IMPROVEMENT FINANCE - 0.07%
500,000 Money Store Home Improvement Trust,
7.41% Ser 1997-1 Class M1
5-15-2017......................... AA 501,880 495,740
------------ --------------
MULTI-FAMILY LOANS - 0.28%
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 1,499,978
469,389 Fund America Structured
Transactions, L.P., Collateralized
Note, 8.50% Ser 1996-1 Class A
Principal Only 10-25-2030
(f)(h)............................ Baa3* 337,292 394,140
------------ --------------
1,811,042 1,894,118
------------ --------------
WHOLE LOAN RESIDENTIAL - 0.06%
409,195 Blackrock Capital Finance L.P.,
7.75% Ser 97-R1 Class A1 3-25-2037
(e)............................... Aaa* 412,911 408,300
------------ --------------
TOTAL ASSET BACKED SECURITIES....... $ 14,815,397 $ 14,804,137
============ ==============
</TABLE>
CORPORATE BONDS-INVESTMENT GRADE-16.63%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- -------- ------------ ---------------
<C> <S> <C> <C> <C>
AGRICULTURE, CONSTRUCTION AND MINING
MACHINERY - 0.11%
$ 750,000 Caterpillar, Inc., 7.25% Deb
9-15-2009......................... A+ $ 748,661 $ 735,667
------------ --------------
AUTOMOTIVE EQUIPMENT RENTAL AND
LEASING - 0.14%
1,000,000 Ryder System, Inc., 6.60% Note
11-15-2005........................ BBB+ 999,726 922,848
------------ --------------
CABLE AND OTHER PROGRAM DISTRIBUTION
- 0.36%
1,000,000 Time Warner, Inc., 6.875% Sr Deb
6-15-2018......................... BBB 1,012,671 887,340
1,500,000 Time Warner, Inc., 8.11% Note
8-15-2006......................... BBB 1,522,071 1,528,474
------------ --------------
2,534,742 2,415,814
------------ --------------
</TABLE>
55
<PAGE>
FORTIS SERIES FUND, INC.
ASSET ALLOCATION SERIES (CONTINUED)
Schedule of Investments
June 30, 2000 (Unaudited)
CORPORATE BONDS-INVESTMENT GRADE-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- -------- ------------ ---------------
<C> <S> <C> <C> <C>
CABLE AND OTHER SUBSCRIPTION
PROGRAMMING - 0.29%
$1,000,000 Comcast Cable Communications, 8.375%
Note 5-1-2007..................... BBB $ 1,114,064 $ 1,019,315
1,000,000 Cox Communications, Inc., 6.40% Note
8-1-2008.......................... BBB+ 1,022,009 917,283
------------ --------------
2,136,073 1,936,598
------------ --------------
CAPTIVE AUTO FINANCE - 0.82%
2,500,000 DaimlerChrysler N.A. Holding Corp.,
7.40% Note 1-20-2005.............. A+ 2,498,290 2,493,915
1,500,000 Ford Motor Co., 6.375% Deb
2-1-2029.......................... A 1,452,807 1,224,321
1,250,000 General Motors Acceptance Corp.,
6.15% Bond 4-5-2007............... A 1,246,310 1,141,592
750,000 Toyota Motor Credit, 5.625% Global
Note 11-13-2003................... AAA 749,140 717,099
------------ --------------
5,946,547 5,576,927
------------ --------------
COMMERCIAL BANKING - 1.01%
1,000,000 BankAmerica Corp., 6.20% Sub Note
2-15-2006......................... A 953,735 933,884
750,000 Keycorp Capital II, 6.875% Bond
3-17-2029......................... BBB 742,128 587,189
1,500,000 Mellon Financial Co., 6.375% Sub
Note 2-15-2010.................... A 1,505,718 1,352,437
1,250,000 National City Corp., 6.875% Sub Note
5-15-2019......................... A- 1,247,862 1,071,656
1,500,000 NBD Bancorp, 7.125% Sub Note
5-15-2007......................... A- 1,484,673 1,441,443
1,500,000 St. Paul Bancorp, Inc., 7.125% Sr
Note 2-15-2004.................... BBB 1,495,983 1,452,250
------------ --------------
7,430,099 6,838,859
------------ --------------
CONSUMER LENDING - 0.71%
1,000,000 Aristar, Inc., 7.25% Sr Note
6-15-2006......................... A- 996,559 956,259
1,500,000 CIT Group, Inc., 7.375% Note
3-15-2003......................... A+ 1,498,551 1,480,413
2,500,000 Household Finance Corp., 6.00% Note
5-1-2004.......................... A 2,499,564 2,355,962
------------ --------------
4,994,674 4,792,634
------------ --------------
CREDIT CARD ISSUING - 0.22%
1,500,000 Providian National Bank, 6.75% Sr
Note 3-15-2002.................... BBB- 1,499,415 1,472,743
------------ --------------
DEPARTMENT STORES - 0.53%
2,000,000 Dayton Hudson Corp., 5.875% Note
11-1-2008......................... A- 1,948,051 1,773,550
1,250,000 Federated Department Stores, 6.30%
Note 4-1-2009..................... BBB+ 1,246,915 1,110,843
1,000,000 Saks, Inc., 7.375% Sub Deb
2-15-2019......................... Baa3 916,305 741,955
------------ --------------
4,111,271 3,626,348
------------ --------------
ELECTRIC GENERATION, TRANSMISSION
AND DISTRIBUTION - 1.10%
1,000,000 Alabama Power Co., 7.125% Sr Note
10-1-2007......................... A 996,705 971,548
1,500,000 Detroit Edison Co., 7.50% Note
2-1-2005.......................... A- 1,497,779 1,509,220
750,000 Duke Capital Corp., 8.00% Sr Note
10-1-2019......................... A 760,016 755,190
1,000,000 Duke Energy Corp., 6.00% Sr Note
12-1-2028......................... A+ 976,572 792,043
1,500,000 Madison Gas & Electric, 6.02% Sr
Note 9-15-2008.................... AA- 1,500,000 1,353,675
567,073 Niagara Mohawk Power Co., 7.625% Sr
Note 10-1-2005.................... BBB- 555,712 557,234
1,500,000 TXU Electric Capital V, 8.175% Deb
1-30-2037......................... BBB- 1,500,000 1,497,950
------------ --------------
7,786,784 7,436,860
------------ --------------
EXECUTIVE, LEGISLATIVE AND
GOVERNMENT SUPPORT - 0.04%
250,000 New York (City of), 10.00% General
Obligation Taxable Bond Ser D
8-1-2005.......................... A- 253,459 264,755
------------ --------------
FOREIGN GOVERNMENTS - 0.91%
1,000,000 British Columbia (Province of),
6.50% Yankee Bond 1-15-2026....... AA- 1,023,051 885,352
1,000,000 Korea (Republic of), 8.875% Global
Bond 4-15-2008.................... BBB 1,049,271 1,036,250
1,500,000 Ontario (Province of), 5.50% Sr
Global Bond 10-1-2008............. AA- 1,492,342 1,344,559
1,500,000 Ontario (Province of), 7.375% Sr
Global Bond 1-27-2003............. AA- 1,572,283 1,506,625
1,000,000 Poland (Republic of), 7.125% Yankee
Note 7-1-2004..................... BBB+ 996,785 972,500
500,000 Quebec (Province of), 5.75% Sr
Global Bond 2-15-2009............. A+ 498,828 447,320
------------ --------------
6,632,560 6,192,606
------------ --------------
FOREIGN GOVERNMENTS-AGENCIES - 0.07%
500,000 Korea Development Bank, 7.125%
Global Note 4-22-2004............. BBB 497,105 483,471
------------ --------------
</TABLE>
56
<PAGE>
CORPORATE BONDS-INVESTMENT GRADE-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- -------- ------------ ---------------
<C> <S> <C> <C> <C>
FOREIGN GOVERNMENTS-SUPRA-NATIONAL -
0.63%
$1,250,000 Corp Andina de Fomento, 7.10% Yankee
Bond 2-1-2003..................... A $ 1,249,648 $ 1,220,292
1,500,000 Inter-American Development Bank,
7.375% Bond 1-15-2010............. AAA 1,494,472 1,525,077
1,500,000 International Bank for
Reconstruction & Development,
7.00% Global Bond 1-27-2005....... AAA 1,492,962 1,497,928
------------ --------------
4,237,082 4,243,297
------------ --------------
GRAIN AND OILSEED MILLING - 0.12%
1,000,000 Archer-Daniels-Midland Co., 6.625%
Deb 5-1-2029...................... A+ 995,263 835,947
------------ --------------
GROCERY AND RELATED PRODUCT
WHOLESALERS - 0.10%
750,000 Sysco Corp., 6.50% Deb 8-1-2028..... AA- 753,692 656,280
------------ --------------
GROCERY STORES - 0.45%
1,250,000 Ahold Finance USA, Inc., 6.25% Sr
Deb 5-1-2009...................... A- 1,240,645 1,115,606
1,000,000 Fred Meyer, Inc., 7.45% Sub Note
3-1-2008.......................... BBB- 1,056,546 956,417
1,000,000 Kroger Co., 8.15% Sr Note
7-15-2006......................... BBB- 1,019,888 1,003,965
------------ --------------
3,317,079 3,075,988
------------ --------------
INDUSTRIAL MACHINERY AND EQUIPMENT
RENTAL AND LEASING - 0.21%
1,500,000 Comdisco, Inc., 5.95% Note
4-30-2002......................... BBB+ 1,499,906 1,426,705
------------ --------------
INSURANCE CARRIERS - 0.63%
500,000 American General Corp., 6.625% Sr
Note 2-15-2029.................... AA- 476,886 417,364
1,250,000 Prudential Insurance Co., 6.375% Sr
Note 7-23-2006 (e)................ A+ 1,245,577 1,155,213
1,500,000 ReliaStar Financial Corp., 6.625%
Note 9-15-2003.................... A 1,535,657 1,453,705
1,250,000 ReliaStar Financial Corp., 8.00%
Note 10-30-2006................... A 1,245,846 1,260,728
------------ --------------
4,503,966 4,287,010
------------ --------------
INTERNATIONAL TRADE FINANCING
(FOREIGN BANKS) - 0.53%
1,250,000 Bank Austria AG, 7.25% Sub Note
2-15-2017 (f)..................... AA+ 1,247,830 1,160,754
1,250,000 BSCH Issuance Ltd., 7.625%
11-3-2009......................... A 1,217,885 1,232,093
500,000 LB Baden-Wuerttemberg, 7.625% Yankee
Sub Note 2-1-2023................. AAA 563,159 489,385
750,000 Swiss Bank Corp. New York, 7.00% Sub
Deb 10-15-2015.................... AA 705,137 689,820
------------ --------------
3,734,011 3,572,052
------------ --------------
LUMBER AND OTHER CONSTRUCTION
MATERIALS WHOLESALER - 0.13%
1,000,000 Georgia-Pacific Group, 7.75% Note
11-15-2029........................ BBB- 933,798 909,436
------------ --------------
MANUFACTURING-BASIC CHEMICAL - 0.33%
750,000 Equistar Chemicals, L.P., 8.75% Sr
Note 2-15-2009.................... BBB- 784,382 733,098
1,500,000 Rohm & Haas Co., 7.85% Deb
7-15-2029......................... A- 1,479,069 1,516,311
------------ --------------
2,263,451 2,249,409
------------ --------------
MANUFACTURING-BEVERAGE - 0.40%
1,500,000 Coca-Cola Bottling Co., 6.375% Deb
5-1-2009.......................... BBB 1,491,047 1,347,763
1,500,000 Pepsi Bottling Group, Inc., 7.00% Sr
Note 3-1-2029..................... A- 1,489,940 1,345,784
------------ --------------
2,980,987 2,693,547
------------ --------------
MANUFACTURING-COMMUNICATIONS
EQUIPMENT - 0.16%
1,250,000 Lucent Technologies, Inc., 6.45% Deb
3-15-2029......................... A 1,243,363 1,104,011
------------ --------------
MANUFACTURING-COMPUTER AND
PERIPHERAL EQUIPMENT - 0.22%
1,500,000 Hewlett-Packard Co., 7.15%
6-15-2005......................... AA- 1,495,047 1,505,462
------------ --------------
MANUFACTURING-MOTOR VEHICLE PARTS -
0.18%
1,250,000 TRW, Inc., 6.50% Sr Note 6-1-2002... BBB 1,241,049 1,221,580
------------ --------------
MANUFACTURING-PETROLEUM AND COAL
PRODUCTS - 0.30%
1,000,000 Chevron Corp., 6.625% Note
10-1-2004......................... AA 996,788 987,514
1,000,000 Texaco Capital, Inc., 8.625% Deb
6-30-2010......................... A+ 1,100,322 1,074,855
------------ --------------
2,097,110 2,062,369
------------ --------------
MANUFACTURING-SEMICONDUCTOR,
ELECTRONIC COMPONENT - 0.19%
1,500,000 Tyco International Group S.A.,
6.875% Yankee Bond 1-15-2029...... A- 1,513,286 1,282,695
------------ --------------
</TABLE>
57
<PAGE>
FORTIS SERIES FUND, INC.
ASSET ALLOCATION SERIES (CONTINUED)
Schedule of Investments
June 30, 2000 (Unaudited)
CORPORATE BONDS-INVESTMENT GRADE-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- -------- ------------ ---------------
<C> <S> <C> <C> <C>
MANUFACTURING-SOAP, CLEANING
COMPOUND, TOILET - 0.40%
$2,750,000 Proctor & Gamble Co., 6.875% Global
Bond 9-15-2009.................... AA $ 2,752,815 $ 2,679,944
------------ --------------
MILLS-PULP, PAPER AND PAPERBOARD -
0.14%
1,000,000 Fort James Corp., 6.50% Sr Note
9-15-2002......................... BBB- 999,409 975,940
------------ --------------
MOTION PICTURE AND VIDEO INDUSTRIES
- 0.43%
1,500,000 Seagram, J. & Co., 6.625%
12-15-2005........................ BBB- 1,420,004 1,434,060
1,500,000 Viacom, Inc., 7.625% Sr Deb
1-15-2016......................... BBB+ 1,624,463 1,449,595
------------ --------------
3,044,467 2,883,655
------------ --------------
NATURAL GAS DISTRIBUTION - 0.10%
750,000 Enron Corp., 6.95% Note 7-15-2028... BBB+ 678,070 659,564
------------ --------------
NAVIGATIONAL, MEASURING AND CONTROL
INSTRUMENTS - 0.36%
1,500,000 Lockheed Martin Corp., 7.65% Deb
5-1-2016.......................... BBB- 1,507,958 1,418,913
1,195,000 Raytheon Co., 7.20% Deb 8-15-2027... BBB- 1,053,835 1,042,251
------------ --------------
2,561,793 2,461,164
------------ --------------
OIL AND GAS EXTRACTION - 0.13%
1,000,000 Conoco, Inc., 6.95% Sr Note
4-15-2029......................... A- 934,444 911,375
------------ --------------
PIPELINE TRANSPORTATION OF NATURAL
GAS - 0.49%
1,000,000 CMS Panhandle Holding Co., 7.00% Sr
Note 7-15-2029.................... BBB- 991,560 844,465
750,000 NGC Corp. Capital Trust, 8.316% Sub
Deb 6-1-2027...................... BBB- 750,000 626,994
1,250,000 Tennessee Gas Pipeline, 7.50% Deb
4-1-2017.......................... BBB+ 1,231,618 1,186,980
750,000 Trans-Canada Pipelines Ltd., 6.49%
Yankee Bond 1-21-2009............. A- 754,810 674,114
------------ --------------
3,727,988 3,332,553
------------ --------------
RADIO AND TELEVISION BROADCASTING -
0.10%
750,000 Liberty Media Group, Inc., 8.25% Deb
2-1-2030.......................... BBB- 744,013 688,696
------------ --------------
RAIL TRANSPORTATION - 0.07%
500,000 CSX Corp., 7.90% Deb 5-1-2017....... BBB 499,732 474,862
------------ --------------
SALES FINANCING - 0.49%
1,000,000 Finova Capital Corp., 7.625% Sr Note
9-21-2009......................... BBB+ 993,811 834,594
1,500,000 General Electric Capital Corp.,
7.375% Medium Term Note
1-19-2010......................... AAA 1,489,172 1,514,145
1,000,000 Textron Financial Corp., 7.125% Note
12-9-2004......................... A- 995,440 989,970
------------ --------------
3,478,423 3,338,709
------------ --------------
SCHEDULED AIR TRANSPORTATION - 0.17%
750,000 Delta Air Lines, Inc., 6.65% Meduim
Term Note 3-15-2004............... BBB- 749,563 699,126
500,000 Delta Air Lines, Inc., 7.70% Note
12-15-2005........................ BBB- 498,928 481,723
------------ --------------
1,248,491 1,180,849
------------ --------------
SECURITIES AND COMMODITY CONTRACTS
AND BROKERAGE - 0.80%
1,500,000 Bear Stearns Capital Trust, 7.00%
Variable Rate Note 1-15-2027...... BBB 1,499,164 1,458,910
1,250,000 Goldman Sachs Group, Inc., 6.50%
Note 2-25-2009 (e)................ A+ 1,250,000 1,135,747
1,000,000 Goldman Sachs Group, Inc., 6.65%
Note 5-15-2009.................... A+ 998,155 915,976
1,000,000 Lehman Brothers Holdings, 7.875%
Note 11-1-2009.................... A 1,021,190 971,113
1,000,000 Paine Webber Group, Inc., 7.625%
Note 12-1-2009.................... BBB+ 996,553 944,217
------------ --------------
5,765,062 5,425,963
------------ --------------
SUPPORT ACTIVITIES FOR MINING -
0.19%
500,000 Petroleum Geo-Services ASA, 6.25%
Yankee Bond 11-19-2003............ BBB 498,443 472,895
1,000,000 Petroleum Geo-Services ASA, 7.125%
Yankee Sr Note 3-30-2028.......... BBB 997,169 827,291
------------ --------------
1,495,612 1,300,186
------------ --------------
TELECOMMUNICATIONS-OTHER - 0.10%
750,000 Telecomunicaciones de Puerto Rico,
6.65% Sub Note 5-15-2006.......... BBB 749,759 709,720
------------ --------------
</TABLE>
58
<PAGE>
CORPORATE BONDS-INVESTMENT GRADE-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- -------- ------------ ---------------
<C> <S> <C> <C> <C>
TELECOMMUNICATIONS CARRIERS-WIRED -
1.17%
$1,250,000 360 Communications ALLTEL Corp.,
7.50% Sr Note 3-1-2006............ A $ 1,248,106 $ 1,237,302
1,500,000 ALLTEL Corp., 6.80% Deb 5-1-2029.... A- 1,490,788 1,276,925
1,750,000 AT&T Corp., 6.00% Note 3-15-2009.... AA- 1,746,284 1,560,369
1,000,000 GTE Corp., 7.51% Note 4-1-2009...... A+ 993,418 984,580
1,500,000 Sprint Capital Corp., 5.875% Deb
5-1-2004.......................... BBB+ 1,494,078 1,413,111
1,500,000 US West Communications, 7.20% Note
11-1-2004......................... A 1,499,311 1,476,463
------------ --------------
8,471,985 7,948,750
------------ --------------
TELECOMMUNICATIONS CARRIERS-WIRELESS
- 0.42%
1,250,000 AirTouch Communications, 6.65% Note
5-1-2008.......................... A- 1,269,010 1,170,692
1,000,000 Century Telephone Enterprises, Inc.,
6.15% Sr Note 1-15-2005........... BBB+ 998,942 926,812
750,000 Vodafone Airtouch plc, 7.875% Deb
2-15-2030 (e)..................... A- 740,252 734,045
------------ --------------
3,008,204 2,831,549
------------ --------------
TRAVELER ACCOMMODATION - 0.18%
1,250,000 Park Place Entertainment, 8.50% Sr
Note 11-15-2006................... BBB- 1,238,564 1,242,966
------------ --------------
TOTAL CORPORATE BONDS - INVESTMENT
GRADE............................. $119,779,037 $ 112,868,363
============ ==============
</TABLE>
CORPORATE BONDS-NON-INVESTMENT GRADE-7.05%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- -------- ----------- ------------
<C> <S> <C> <C> <C>
AMUSEMENT PARKS AND ARCADES - 0.10%
$1,000,000 Six Flags, Inc., 11.67% Sr Disc Note
4-1-2008 (Zero coupon through 4-1-2003,
thereafter 10.00%) (g).................. B- $ 686,826 $ 678,750
----------- ------------
CABLE AND OTHER PROGRAM DISTRIBUTION -
0.99%
250,000 Cablevision S.A., 13.75% Note 4-30-2007
(e)..................................... BB 247,229 232,500
2,000,000 Charter Communications Holdings LLC, 9.92%
Sr Disc Note 4-1-2011 (Zero coupon
through 4-1-2004, thereafter 9.92%)
(g)..................................... B+ 1,402,564 1,135,000
1,750,000 Mediacom LLC/Capital Corp., 7.875% Sr Note
2-15-2011............................... B+ 1,727,138 1,531,250
1,000,000 NTL Communications Corp., 12.375% Sr Note
Ser B 10-1-2008 (Zero coupon through
10-1-2003, thereafter 12.375%) (g)...... B- 669,157 635,000
1,750,000 United International Holdings, Inc.,
10.75% Sr Disc Note Ser B
2-15-2008 (Zero coupon through
2-15-2003, thereafter 10.75%) (g)....... B- 1,240,201 1,225,000
2,250,000 United Pan-Europe Communications N.V.,
11.25% Sr Note 11-1-2009................ B 2,234,046 1,980,000
----------- ------------
7,520,335 6,738,750
----------- ------------
CABLE AND OTHER SUBSCRIPTION PROGRAMMING -
0.43%
2,000,000 Adelphia Communications Corp., 9.375% Sr
Note 11-15-2009......................... B+ 1,984,702 1,850,000
1,000,000 CSC Holdings, Inc., 10.50% Sr Sub Deb
5-15-2016............................... BB- 1,013,940 1,062,500
----------- ------------
2,998,642 2,912,500
----------- ------------
ELECTRIC GENERATION, TRANSMISSION AND
DISTRIBUTION - 0.16%
1,100,000 AES Corp., 9.50% Sr Note 6-1-2009......... BB 1,105,516 1,078,000
----------- ------------
FOREIGN GOVERNMENTS - 0.12%
800,000 Brazil (Republic of), 11.625% Global Bond
4-15-2004............................... B+ 793,926 808,000
----------- ------------
GAMBLING INDUSTRIES - 0.30%
1,000,000 Isle of Capri Casinos, Inc., 8.75% Sub
Note 4-15-2009.......................... B 897,995 925,000
750,000 Mandalay Resort Group, 7.625% Sr Sub Deb
7-15-2013............................... BB- 647,530 615,000
250,000 Splitrock Service (Warrants) (a).......... B+ 234,804 238,125
250,000 Station Casinos, Inc., 9.875% Sr Sub Note
7-1-2010 (e)............................ B+ 249,015 250,625
----------- ------------
2,029,344 2,028,750
----------- ------------
GENERAL MEDICAL AND SURGICAL HOSPITALS -
0.15%
1,000,000 Triad Hospitals Holdings, Inc., 11.00% Sr
Sub Note 5-15-2009...................... B- 1,005,786 1,022,500
----------- ------------
</TABLE>
59
<PAGE>
FORTIS SERIES FUND, INC.
ASSET ALLOCATION SERIES (CONTINUED)
Schedule of Investments
June 30, 2000 (Unaudited)
CORPORATE BONDS-NON-INVESTMENT GRADE-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- -------- ----------- ------------
<C> <S> <C> <C> <C>
INSURANCE CARRIERS - 0.08%
$ 750,000 Conseco, Inc., 8.75% Note 2-9-2004........ BB- $ 749,629 $ 521,250
----------- ------------
LIMITED-SERVICE EATING PLACES - 0.15%
1,000,000 Sbarro, Inc., 11.00% Sr Note 9-15-2009.... BB- 987,686 1,022,500
----------- ------------
MANUFACTURING-BASIC CHEMICAL - 0.11%
750,000 Lyondell Chemical Co., 9.875% Sr Secured
Note Ser B 5-1-2007..................... BB 750,000 740,625
----------- ------------
MANUFACTURING-ENGINEERED WOOD PRODUCT -
0.11%
750,000 Doman Industries, 12.00% Note 7-1-2004.... B+ 777,277 750,000
----------- ------------
MANUFACTURING-INDUSTRIAL MACHINERY - 0.07%
500,000 Better Minerals & Aggregates, 13.00% Sr
Sub Note 9-15-2009...................... B- 500,000 488,750
----------- ------------
MANUFACTURING-MOTOR VEHICLE PARTS - 0.24%
1,000,000 Holley Performance Products, 12.25% Sr Sub
Note 9-15-2007.......................... B+ 965,634 720,000
1,000,000 Tenneco Automotive, Inc., 11.625% Sr Sub
Note 10-15-2009......................... B+ 1,000,000 890,000
----------- ------------
1,965,634 1,610,000
----------- ------------
MANUFACTURING-SEMICONDUCTOR, ELECTRONIC
COMPONENT - 0.07%
500,000 Fairchild Semiconductor, 10.375% Sr Sub
Note 10-1-2007.......................... B 507,669 508,750
----------- ------------
MEDICAL AND DIAGNOSTIC LABORATORIES -
0.13%
850,000 Unilab Finance Corp., 12.75% Sr Sub Note
10-1-2009............................... B- 840,174 875,500
----------- ------------
MILLS-PULP, PAPER AND PAPERBOARD - 0.15%
1,000,000 Packaging Corp. of America, 9.625% Sr Sub
Note 4-1-2009........................... B+ 1,024,390 992,500
----------- ------------
OIL AND GAS EXTRACTION - 0.28%
650,000 Ocean Energy, Inc., 8.875% Sr Sub Note Ser
B 7-15-2007............................. BB- 647,815 646,750
500,000 Pioneer Natural Resources Co., 9.625% Sr
Note 4-1-2010........................... BB+ 498,259 516,315
750,000 Swift Energy Co., 10.25% Sr Sub Note
8-1-2009................................ B- 757,698 759,375
----------- ------------
1,903,772 1,922,440
----------- ------------
OTHER INFORMATION SERVICES - 0.49%
1,000,000 Exodus Communications, Inc., 10.75% Sr
Note 12-15-2009 (e)..................... B 996,298 965,000
750,000 Exodus Communications, Inc., 11.625% Sr
Note 7-15-2010 (e)...................... NR 750,000 751,875
250,000 Globix Corp., 12.50% Sr Note 2-1-2010..... B- 251,818 205,000
1,500,000 PSINet, Inc., 11.00% Sr Note 8-1-2009..... B- 1,428,898 1,387,500
----------- ------------
3,427,014 3,309,375
----------- ------------
RADIO AND TELEVISION BROADCASTING - 0.28%
500,000 Ackerley Group, Inc., 9.00% Sr Sub Note
Ser B 1-15-2009......................... B 465,399 458,750
1,008,177 Australis Media Ltd. Sr Disc Note
5-15-2003 (Zero coupon through
5-15-2000, thereafter 15.75%) (with
warrants) (a) (e)....................... D 802,731 10
500,000 Sinclair Broadcast Group, Inc., 10.00% Sr
Sub Note 9-30-2005...................... B 500,000 477,500
1,000,000 Spanish Broadcasting System, Inc., 9.625%
Sr Sub 11-1-2009........................ B- 981,777 995,000
----------- ------------
2,749,907 1,931,260
----------- ------------
STEEL PRODUCT MANUFACTURING FROM PURCHASED
STEEL - 0.07%
500,000 AK Steel Corp., 9.125% Sr Note
12-15-2006.............................. BB 498,833 480,000
----------- ------------
TELECOMMUNICATIONS-OTHER - 0.99%
750,000 Flag Telecom Holding, Ltd., 11.625% Sr
Note 3-30-2010.......................... B 750,000 727,500
1,250,000 Gobal Crossing Holdings Ltd., 9.50% Sr
Note 11-15-2009......................... BB 1,228,359 1,206,250
750,000 IMPSAT Fiber Networks, Inc., 13.75% Sr
Note 2-15-2005 (e)...................... B 750,000 667,500
750,000 Level 3 Communications, Inc., 12.875% Sr
Disc Note 3-15-2010 (Zero coupon through
3-15-2005, thereafter 12.875%)
(e) (g)................................. B 416,862 410,625
1,250,000 Level 3 Communications, Inc., 9.125% Sr
Note 5-1-2008........................... B 1,227,129 1,121,875
750,000 Metromedia Fiber Network, Inc., 10.00% Sr
Note 12-15-2009......................... B+ 744,229 738,750
500,000 Spectrasite Holdings, Inc., 12.875% Sr
Disc Note 3-15-2010 (Zero coupon through
3-15-2005, thereafter 12.875%)
(e) (g)................................. B- 277,923 272,500
250,000 Spectrasite Holdings, Inc., 13.05% Sr Disc
Note Ser B 3-15-2010 (Zero coupon
through 3-15-2005, thereafter 12.875%)
(g)..................................... B- 137,032 136,250
</TABLE>
60
<PAGE>
CORPORATE BONDS-NON-INVESTMENT GRADE-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
----------- -------- ----------- ------------
<C> <S> <C> <C> <C>
$1,500,000 Williams Communications Group, Inc.,
10.875% Sr Note 10-1-2009............... B+ $1,489,217 $ 1,466,250
----------- ------------
7,020,751 6,747,500
----------- ------------
TELECOMMUNICATIONS CARRIERS-WIRED - 0.98%
750,000 Alaska Communications SY, 9.375% Sr Sub
Note 5-15-2009.......................... B+ 750,000 691,875
750,000 Focal Communications Corp., 11.875% Sr
Note 1-15-2010 (f)...................... B 733,190 753,750
1,000,000 Hyperion Telecommunications, 12.25% Sr
Note Ser B 9-1-2004..................... BB- 1,069,923 1,010,000
1,250,000 Intermedia Communications, Inc., 8.50% Sr
Note Ser B 1-15-2008.................... B 1,187,474 1,150,000
750,000 Madison River Communications, 13.25% Sr
Note 3-1-2010 (f)....................... CCC+ 739,919 675,000
1,000,000 NEXTLINK Communications, 10.50% Sr Note
12-1-2009 (f) (g)....................... B 1,000,000 975,000
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 596,596 575,000
1,000,000 RCN Corp., 10.125% Sr Note 1-15-2010...... B- 1,000,000 832,500
----------- ------------
7,077,102 6,663,125
----------- ------------
TELECOMMUNICATIONS CARRIERS-WIRELESS -
0.49%
500,000 Dobson Communications, 10.875% Sr Note
7-1-2010 (e)............................ NR 496,230 502,500
750,000 Grupo Iusacell S.A. de C.V., 14.25% Sr
Note 12-1-2006.......................... B+ 780,461 783,750
750,000 Microcell Telecommunications, Inc., 12.52%
Sr Disc Note Ser B 6-1-2006 (Zero coupon
through 12-1-2001, thereafter 14.00%)
(g)..................................... NR 689,986 691,875
750,000 Nextel Communications, Inc., 10.65% Sr
Disc Note 9-15-2007 (Zero coupon through
9-15-2002, thereafter 10.65%) (g)....... B 564,411 588,750
1,150,000 Telecorp PCS, Inc., 11.41% Sr Sub Note
4-15-2009 ( Zero coupon through
4-15-2004, thereafter 11.625%) (g)...... NR 761,875 750,375
----------- ------------
3,292,963 3,317,250
----------- ------------
WATER, SEWAGE AND OTHER SYSTEMS - 0.11%
750,000 Azurix Corp., 10.75% Sr Note 2-15-2010
(f)..................................... BB 752,121 721,875
----------- ------------
TOTAL CORPORATE BONDS - NON-INVESTMENT
GRADE................................... $50,965,297 $ 47,869,950
=========== ============
</TABLE>
U.S. GOVERNMENT SECURITIES-7.65%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Cost (b) Value (c)
------------ ------------- -------------
<C> <S> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION -
2.98%
MORTGAGE BACKED SECURITIES:
$ 7,037,459 6.00% 2013-2014........................... $ 6,815,277 $ 6,661,191
724,278 6.30% 2008................................ 725,075 684,738
6,807,735 6.50% 2015................................ 6,681,312 6,564,569
4,938,189 7.00% 2011-2030 (i)....................... 4,783,262 4,779,261
1,085,111 7.50% 2022-2027........................... 1,119,930 1,070,179
429,232 8.00% 2025................................ 435,738 431,145
19,396 9.00% 2021................................ 19,354 19,971
------------ ------------
TOTAL FEDERAL NATIONAL MORTGAGE
ASSOCIATION............................. 20,579,948 20,211,054
------------ ------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -
0.47%
MORTGAGE BACKED SECURITIES:
1,701,638 7.50% 2023................................ 1,621,342 1,690,682
1,388,878 9.00% 2022-2023........................... 1,434,016 1,434,869
79,049 9.50% 2020................................ 78,852 82,162
------------ ------------
TOTAL GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION............................. 3,134,210 3,207,713
------------ ------------
U.S. TREASURY SECURITIES - 4.20%
BONDS:
8,250,000 5.25% 2029................................ 7,043,285 7,319,301
2,050,000 6.125% 2029............................... 2,031,778 2,071,782
7,000,000 6.29% 2021 Zero Coupon Strip(g)........... 1,865,169 1,891,045
</TABLE>
61
<PAGE>
FORTIS SERIES FUND, INC.
ASSET ALLOCATION SERIES (CONTINUED)
Schedule of Investments
June 30, 2000 (Unaudited)
U.S. GOVERNMENT SECURITIES-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Cost (b) Value (c)
------------ ------------- -------------
<C> <S> <C> <C>
$10,150,000 7.00% 2019 Zero Coupon Strip(g)........... $ 2,819,566 $ 3,215,713
2,750,000 10.375% 2012.............................. 3,314,453 3,384,218
------------ ------------
17,074,251 17,882,059
------------ ------------
NOTES:
1,000,000 4.75% 2008................................ 874,867 908,125
1,000,000 6.00% 2009................................ 975,714 991,875
6,200,000 6.125% 2007............................... 6,169,093 6,163,190
2,500,000 6.50% 2010................................ 2,567,614 2,585,157
------------ ------------
10,587,288 10,648,347
------------ ------------
TOTAL U.S. TREASURY SECURITIES............ 27,661,539 28,530,406
------------ ------------
TOTAL U.S. GOVERNMENT SECURITIES.......... 51,375,697 51,949,173
============ ============
TOTAL LONG-TERM INVESTMENTS............... $593,397,743 $662,024,493
============ ============
</TABLE>
SHORT-TERM INVESTMENTS-2.49%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
------------ ------------
<C> <S> <C>
CONSUMER LENDING - 0.23%
$ 1,585,000 Associates Corp. Master Variable Rate Note,
Current rate -- 6.50%....................... $ 1,585,000
------------
DEPOSITORY CREDIT-BANKING - 2.26%
15,328,811 U.S. Bank N.A. Money Market Variable Rate Time
Deposit, Current rate -- 6.43%.............. 15,328,811
------------
TOTAL SHORT-TERM INVESTMENTS.................. 16,913,811
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$610,311,554)(b)............................ $678,938,304
============
</TABLE>
62
<PAGE>
--------------------------------------------------------------------------------
(a) Presently non-income producing. For long-term debt securities, items
identified are in default as to payment of interest and/or principal.
(b) At June 30, 2000, the cost of securities for federal income tax purposes
was $610,396,270 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $94,540,237
Unrealized depreciation..................................... (25,998,203)
-------------------------------------------------------------------------
Net unrealized appreciation................................. $68,542,034
-------------------------------------------------------------------------
</TABLE>
(c) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets. Market value of investments in foreign
securities represents 7.98% of net assets as of June 30, 2000.
(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>
Date
Acquired Shares/Par Security Cost Basis
-------- ---------- -------- ----------
<S> <C> <C> <C>
1997 250 @Track Communications, Inc. (Warrants) $ 4,547
1996 1,000 Adelphia Business Solutions, Inc.
(Warrants) 4,022
1997 1,008,177 Australis Media Ltd. due 2003 802,731
1997 409,195 Blackrock Capital Finance L.P. due 2037
- 144A 412,911
2000 250,000 Cablevision S.A. due 2007 - 144A 247,229
2000 500,000 Dobson Communications due 2010 - 144A 496,230
2000 1,000,000 Exodus Communications, Inc. due 2009 -
144A 996,298
2000 750,000 Exodus Communications, Inc. due 2010 -
144A 750,000
1999 1,250,000 Goldman Sachs Group, Inc. due 2009 -
144A 1,250,000
2000 750,000 IMPSAT Fiber Networks due 2005 - 144A 750,000
2000 750,000 Level 3 Communications, Inc. due 2010 -
144A 416,862
1998 1,250,000 Prudential Insurance Co. due 2006 - 144A 1,245,577
2000 500,000 Spectrasite Holdings, Inc. due 2010 -
144A 277,923
2000 250,000 Station Casinos, Inc. due 2010 - 144A 249,015
2000 750,000 Vodafone Airtouch plc due 2030 - 144A 740,252
</TABLE>
The aggregate value of these securities at June 30, 2000, was $7,763,940,
which represents 1.14% of total net assets.
(f) Securities sold within the terms of a private placement memorandum, exempt
from registration under Section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or to other
"accredited investors". Pursuant to guidelines adopted by the Board of
Directors, these issues are deemed to be liquid. The aggregate value of
these securities at June 30, 2000, was $5,255,519, which represents .77% of
total net assets.
(g) The interest rate disclosed for these securities represents the effective
yield on the date of acquisition.
(h) The interest rate disclosed for principal only strips represents effective
yield at June 30, 2000, based upon future cash flows. This security has
been identified by portfolio management as a liquid security. The aggregate
value of this security at June 30, 2000, was $394,140, which represents
.06% of total net assets.
(i) The cost of securities purchased on a when-issued basis at June 30, 2000,
was $3,860,625.
* Moody's Rating
** Duff & Phelps Rating
63
<PAGE>
FORTIS SERIES FUND, INC.
AMERICAN LEADERS SERIES
Schedule of Investments
June 30, 2000 (Unaudited)
COMMON STOCKS-89.13%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------ ---------- ----------
<C> <S> <C> <C>
ACCOUNTING, TAX PREPARATION AND PAYROLL
SERVICES - 0.95%
1,600 H & R Block, Inc............................. $ 65,237 $ 51,800
---------- ----------
ADMINISTRATION OF ENVIRONMENTAL QUALITY
PROGRAMS - 0.52%
1,500 Waste Management, Inc........................ 20,914 28,500
---------- ----------
AEROSPACE PRODUCT AND PARTS MANUFACTURING -
2.23%
2,200 Boeing Co.................................... 77,265 91,987
900 Honeywell International, Inc................. 49,227 30,319
---------- ----------
126,492 122,306
---------- ----------
AGENCIES, BROKERAGE AND OTHER INSURANCE
ACTIVITIES - 1.15%
600 Marsh & McLennan Companies, Inc.............. 57,661 62,662
---------- ----------
AGRICULTURE, CONSTRUCTION AND MINING
MACHINERY - 0.96%
1,300 Ingersoll-Rand Co............................ 57,556 52,325
---------- ----------
BAKERIES AND TORTILLA
MANUFACTURING - 0.92%
2,600 Sara Lee Corp................................ 43,709 50,212
---------- ----------
BASIC CHEMICAL MANUFACTURING - 1.03%
1,600 Ashland, Inc................................. 52,710 56,100
---------- ----------
BEVERAGE MANUFACTURING - 0.96%
700 Anheuser-Busch Companies, Inc................ 48,308 52,281
---------- ----------
BUILDING MATERIALS AND SUPPLIES
DEALERS - 0.77%
2,000 Sherwin-Williams Co.......................... 51,310 42,375
---------- ----------
CABLE AND OTHER SUBSCRIPTION PROGRAMMING -
0.60%
2,000 Charter Communications, Inc. (a)............. 29,162 32,875
---------- ----------
COMMUNICATIONS EQUIPMENT
MANUFACTURING - 1.79%
185 General Motors Corp. Class H................. 14,994 16,234
500 Lucent Technologies, Inc..................... 29,346 29,625
1,800 Motorola, Inc................................ 69,409 52,312
---------- ----------
113,749 98,171
---------- ----------
COMPUTER AND PERIPHERAL EQUIPMENT
MANUFACTURING - 6.95%
1,500 Compaq Computer Corp......................... 41,751 38,344
700 International Business Machines Corp......... 79,121 76,694
800 Lexmark International Group, Inc.
Class A (a) 83,008 53,800
1,200 Seagate Technology, Inc. (a)................. 58,976 66,000
1,600 Sun Microsystems, Inc. (a)................... 144,121 145,500
---------- ----------
406,977 380,338
---------- ----------
COMPUTER SYSTEMS DESIGN AND RELATED SERVICES
- 2.67%
600 Computer Sciences Corp. (a).................. 47,812 44,812
1,400 Electronic Data Systems Corp................. 95,013 57,750
1,900 Novell, Inc. (a)............................. 42,474 17,575
1,800 Unisys Corp. (a)............................. 43,873 26,212
---------- ----------
229,172 146,349
---------- ----------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------ ---------- ----------
<C> <S> <C> <C>
CONVERTED PAPER PRODUCT
MANUFACTURING - 1.59%
800 Kimberly-Clark Corp.......................... $ 46,499 $ 45,900
500 Minnesota Mining and Manufacturing Co........ 42,852 41,250
---------- ----------
89,351 87,150
---------- ----------
CUT AND SEW APPAREL MANUFACTURING - 0.64%
1,000 Liz Claiborne, Inc........................... 42,314 35,250
---------- ----------
DATA PROCESSING, HOSTING AND RELATED SERVICES
- 1.90%
2,100 First Data Corp.............................. 99,516 104,212
---------- ----------
DEPARTMENT STORES - 0.68%
1,100 Federated Department Stores, Inc. (a)........ 40,258 37,125
---------- ----------
DEPOSITORY CREDIT - BANKING - 3.64%
1,300 Bank of America Corp......................... 65,389 55,900
750 Chase Manhattan Corp......................... 39,934 34,547
1,400 PNC Bank Corp................................ 64,705 65,625
1,500 Washington Mutual, Inc....................... 38,182 43,312
---------- ----------
208,210 199,384
---------- ----------
ELECTRIC GENERATION, TRANSMISSION AND
DISTRIBUTION - 3.39%
2,100 Edison International......................... 44,966 43,050
2,400 Entergy Corp................................. 56,022 65,250
1,200 FPL Group, Inc............................... 51,411 59,400
500 Montana Power Co............................. 20,721 17,656
---------- ----------
173,120 185,356
---------- ----------
GRAIN AND OILSEED MILLING - 0.92%
1,900 Corn Products International, Inc. (a)........ 45,182 50,350
---------- ----------
INSURANCE CARRIERS - 8.06%
2,300 Allstate Corp................................ 50,878 51,175
700 CIGNA Corp................................... 56,840 65,450
4,700 Conseco, Inc................................. 31,278 45,825
1,600 Lincoln National Corp........................ 51,487 57,800
900 Loews Corp................................... 46,508 54,000
1,100 MBIA, Inc.................................... 55,595 53,006
1,900 Oxford Health Plans, Inc. (a)................ 27,279 45,244
800 UnitedHealth Group, Inc...................... 50,966 68,600
---------- ----------
370,831 441,100
---------- ----------
MEDICAL EQUIPMENT AND SUPPLIES MANUFACTURING
- 1.41%
1,100 Baxter International, Inc. (with rights)..... 64,085 77,344
---------- ----------
MOTION PICTURE AND VIDEO INDUSTRIES - 4.08%
1,000 AT&T Corp. - Liberty Media Group
Class A (a) 24,209 24,249
1,200 Viacom, Inc. (a)............................. 60,961 82,050
1,719 Viacom, Inc. Class B (a)..................... 88,466 117,214
---------- ----------
173,636 223,513
---------- ----------
MOTOR VEHICLE AND MOTOR VECHICLE PARTS
WHOLESALERS - 0.04%
170 Visteon Corp................................. 2,797 2,064
---------- ----------
MOTOR VEHICLE MANUFACTURING - 1.58%
1,300 Ford Motor Co................................ 67,808 55,900
526 General Motors Corp.......................... 45,350 30,541
---------- ----------
113,158 86,441
---------- ----------
</TABLE>
64
<PAGE>
COMMON STOCKS-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------ ---------- ----------
<C> <S> <C> <C>
MOTOR VEHICLE PARTS
MANUFACTURING - 0.75%
1,500 Delphi Automotive Systems Corp............... $ 30,601 $ 21,844
200 Johnson Controls, Inc........................ 12,278 10,262
200 TRW, Inc..................................... 10,625 8,675
---------- ----------
53,504 40,781
---------- ----------
NATURAL GAS DISTRIBUTION - 0.61%
800 Williams Companies, Inc...................... 29,649 33,350
---------- ----------
NEWSPAPER, PERIODICAL, BOOK AND DATABASE
PUBLISHERS - 0.87%
900 Knight Ridder, Inc........................... 43,008 47,869
---------- ----------
NONDEPOSITORY CREDIT BANKING - 1.72%
4,100 C.I.T. Group, Inc............................ 71,114 66,625
900 Countrywide Credit Industries, Inc........... 28,428 27,281
---------- ----------
99,542 93,906
---------- ----------
OTHER CROP FARMING - 0.78%
2,900 UST, Inc..................................... 47,031 42,594
---------- ----------
OTHER ELECTRICAL EQUIPMENT AND
COMPONENT - 2.00%
2,300 Philips Electronics N.V. ADR................. 98,406 109,250
---------- ----------
OTHER GENERAL MERCHANDISE
STORES - 1.44%
3,100 Kmart Corp. (a).............................. 26,155 21,119
1,000 Wal-Mart Stores, Inc......................... 54,967 57,625
---------- ----------
81,122 78,744
---------- ----------
OTHER PERSONAL SERVICES - 0.56%
2,200 Cendant Corp. (a)............................ 34,853 30,800
---------- ----------
OTHER SPECIAL TRADE CONTRACTORS - 0.69%
700 Textron, Inc................................. 41,171 38,019
---------- ----------
OTHER TELECOMMUNICATIONS - 5.19%
471 Nortel Networks Corp......................... 24,255 32,146
1,300 SBC Communications, Inc...................... 53,908 56,225
600 Sprint Corp.................................. 37,939 30,600
200 Telephone & Data Systems, Inc................ 19,594 20,050
1,100 US West, Inc................................. 75,658 94,325
1,100 WorldCom, Inc. (a)........................... 43,987 50,462
---------- ----------
255,341 283,808
---------- ----------
OUTPATIENT CARE CENTERS - 0.76%
5,800 HEALTHSOUTH Corp. (a)........................ 40,774 41,688
---------- ----------
PAINT, COATING AND ADHESIVE
MANUFACTURING - 0.73%
900 PPG Industries, Inc.......................... 46,689 39,881
---------- ----------
PETROLEUM AND COAL PRODUCTS MANUFACTURING -
5.45%
1,000 Coastal Corp................................. 46,218 60,875
1,100 Exxon Mobil Corp............................. 83,433 86,350
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------ ---------- ----------
<C> <S> <C> <C>
1,300 Royal Dutch Petroleum Co. NY Shares.......... $ 73,763 $ 80,031
1,300 Sunoco, Inc.................................. 35,020 38,269
1,300 USX-Marathon Group (with rights)............. 31,064 32,581
---------- ----------
269,498 298,106
---------- ----------
PHARMACEUTICAL AND MEDICINE MANUFACTURING -
5.70%
1,600 Abbott Laboratories.......................... 60,946 71,300
1,400 Bristol-Myers Squibb Co...................... 82,088 81,550
1,000 Merck & Co., Inc............................. 66,613 76,625
1,600 Pharmacia Corp............................... 83,755 82,700
---------- ----------
293,402 312,175
---------- ----------
RUBBER PRODUCT MANUFACTURING - 0.28%
1,400 Cooper Tire & Rubber Co...................... 19,717 15,575
---------- ----------
SECURITIES AND COMMODITY CONTRACTS AND
BROKERAGE - 1.14%
1,500 Bear Stearns Companies, Inc.................. 63,908 62,438
---------- ----------
SEMICONDUCTOR, ELECTRONIC COMPONENT
MANUFACTURING - 2.62%
400 Micron Technology, Inc. (a).................. 24,969 35,225
1,800 Tyco International Ltd....................... 80,360 85,275
1,400 Viasystems Group, Inc. (a)................... 17,936 22,663
---------- ----------
123,265 143,163
---------- ----------
SHIP AND BOAT BUILDING - 0.42%
1,400 Brunswick Corp............................... 25,954 23,188
---------- ----------
SOFTWARE PUBLISHERS - 1.03%
1,100 Computer Associates International, Inc....... 58,285 56,306
---------- ----------
SPORTING GOODS, HOBBY AND MUSICAL INSTRUMENT
STORE - 1.04%
3,900 Toys 'R' Us, Inc. (a)........................ 56,592 56,794
---------- ----------
SUPPORT ACTIVITIES FOR MINING - 2.47%
1,200 Diamond Offshore Drilling, Inc............... 45,223 42,150
1,100 Schlumberger Ltd............................. 78,472 82,088
200 Transocean Sedco Forex, Inc.................. 9,125 10,688
---------- ----------
132,820 134,926
---------- ----------
TELECOMMUNICATIONS RESELLERS - 0.13%
300 BCE, Inc. (a)................................ 7,748 7,144
---------- ----------
TOBACCO MANUFACTURING - 0.97%
2,000 Philip Morris Companies, Inc................. 43,623 53,125
---------- ----------
WIRED TELECOMMUNICATIONS CARRIERS - 2.35%
1,500 AT&T Corp.................................... 75,453 47,438
1,300 GTE Corp..................................... 92,364 80,925
---------- ----------
167,817 128,363
---------- ----------
TOTAL COMMON STOCKS.......................... $4,859,134 $4,877,576
========== ==========
</TABLE>
PREFERRED STOCKS-4.24%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------ ---------- ----------
<C> <S> <C> <C>
INSURANCE CARRIERS - 1.01%
800 Metropolitan Life Insurance, Conv. 8.00%..... $ 43,767 $ 55,350
---------- ----------
</TABLE>
65
<PAGE>
FORTIS SERIES FUND, INC.
AMERICAN LEADERS SERIES (CONTINUED)
Schedule of Investments
June 30, 2000 (Unaudited)
PREFERRED STOCKS-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------ ---------- ----------
<C> <S> <C> <C>
MOTION PICTURE AND VIDEO INDUSTRIES - 2.17%
2,500 News Corp. Ltd. (The) ADR Preferred.......... $ 98,965 $ 118,750
---------- ----------
OTHER PERSONAL SERVICES - 0.20%
500 Cendant Corp., Conv. 7.50%................... 12,405 10,875
---------- ----------
RAIL TRANSPORTATION - 0.86%
1,200 Union Pacific Corp., Conv. 6.25%............. 50,175 46,800
---------- ----------
TOTAL PREFERRED STOCKS....................... 205,312 231,775
========== ==========
TOTAL LONG-TERM INVESTMENTS.................. $5,064,446 $5,109,351
========== ==========
</TABLE>
SHORT-TERM INVESTMENTS - 6.43%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
--------- ----------
<C> <S> <C>
DEPOSITORY CREDIT-BANKING - 6.43%
$351,900 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 6.42%........ $ 351,900
----------
TOTAL INVESTMENTS IN SECURITIES (COST:
$5,416,346)(b)............................. $5,461,251
==========
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 2000, the cost of securities for federal income tax purposes
was $5,416,361 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation.......................................... $ 409,522
Unrealized depreciation.......................................... (364,632)
------------------------------------------------------------------------------
Net unrealized appreciation...................................... $ 44,890
------------------------------------------------------------------------------
</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 6.22% of total net assets as of June 30, 2000.
66
<PAGE>
FORTIS SERIES FUND, INC.
VALUE SERIES
Schedule of Investments
June 30, 2000 (Unaudited)
COMMON STOCKS-94.33%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
---------- ----------- -----------
<C> <S> <C> <C>
ACCOUNTING, TAX PREPARATION AND PAYROLL
SERVICES - 0.98%
27,000 American Management Systems, Inc. (a)........ $ 1,053,153 $ 886,360
----------- -----------
ADMINISTRATION OF ENVIRONMENTAL QUALITY
PROGRAMS - 2.23%
106,000 Waste Management, Inc........................ 1,865,197 2,014,000
----------- -----------
AEROSPACE PRODUCT AND PARTS MANUFACTURING -
6.35%
82,000 Boeing Co.................................... 3,223,934 3,428,625
68,700 Honeywell International, Inc................. 3,505,689 2,314,331
----------- -----------
6,729,623 5,742,956
----------- -----------
AGENCIES, BROKERAGE AND OTHER INSURANCE
ACTIVITIES - 2.43%
20,000 J.P. Morgan & Co., Inc....................... 2,577,578 2,202,500
----------- -----------
ARCHITECTURAL, ENGINEERING AND RELATED
SERVICES - 1.25%
35,700 Fluor Corp................................... 1,454,057 1,129,013
----------- -----------
CABLE AND OTHER SUBSCRIPTION PROGRAMMING -
2.39%
100,000 USA Networks, Inc. (a)....................... 2,307,526 2,162,500
----------- -----------
COMPUTER AND PERIPHERAL EQUIPMENT
MANUFACTURING - 0.58%
10,000 Apple Computer, Inc. (a)..................... 217,917 523,750
----------- -----------
COMPUTER SYSTEMS DESIGN AND RELATED
SERVICES - 1.96%
43,000 Electronic Data Systems Corp................. 2,732,300 1,773,750
----------- -----------
CONSUMER LENDING - 1.10%
24,000 Household International, Inc................. 848,837 997,500
----------- -----------
CONVERTED PAPER PRODUCT MANUFACTURING - 2.70%
93,000 Georgia-Pacific Group........................ 2,751,152 2,441,250
----------- -----------
DATA PROCESSING, HOSTING AND RELATED
SERVICES - 6.23%
92,000 Affiliated Computer Services, Inc. (a)....... 3,284,897 3,041,750
52,200 First Data Corp.............................. 2,315,559 2,590,425
----------- -----------
5,600,456 5,632,175
----------- -----------
DEPARTMENT STORES - 3.15%
84,500 Federated Department Stores, Inc. (a) 3,396,112 2,851,875
----------- -----------
DEPOSITORY CREDIT-BANKING - 6.59%
77,375 Citigroup, Inc............................... 2,675,118 4,661,843
45,000 Washington Mutual, Inc....................... 1,193,206 1,299,375
----------- -----------
3,868,324 5,961,218
----------- -----------
ELECTRIC GENERATION, TRANSMISSION AND
DISTRIBUTION - 3.24%
17,000 Duke Energy Corp............................. 985,927 958,375
96,000 Edison International......................... 2,054,358 1,968,000
----------- -----------
3,040,285 2,926,375
----------- -----------
ELECTRONICS AND APPLIANCE STORES - 3.20%
61,000 RadioShack Corp. (with rights)............... 2,840,467 2,889,875
----------- -----------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
---------- ----------- -----------
<C> <S> <C> <C>
GENERAL MEDICAL AND SURGICAL HOSPITALS -
7.67%
118,500 HCA - The Healthcare Co...................... $ 2,589,460 $ 3,599,438
123,500 Tenet Healthcare Corp. (a)................... 2,654,909 3,334,500
----------- -----------
5,244,369 6,933,938
----------- -----------
INSURANCE CARRIERS - 10.94%
106,000 Ace Ltd...................................... 2,193,632 2,968,000
51,000 MGIC Investment Corp......................... 1,757,574 2,320,500
41,000 Radian Group, Inc............................ 1,803,571 2,121,750
124,000 UnumProvident Corp........................... 2,504,718 2,487,750
----------- -----------
8,259,495 9,898,000
----------- -----------
INVESTIGATION AND SECURITY SERVICES - 3.18%
182,000 Sensormatic Electronics Corp. (a)............ 2,703,646 2,877,875
----------- -----------
MOTOR VEHICLE PARTS MANUFACTURING - 1.30%
81,000 Delphi Automotive Systems Corp............... 1,349,371 1,179,562
----------- -----------
NONDEPOSITORY CREDIT BANKING - 4.47%
48,000 Fannie Mae................................... 2,537,938 2,505,000
38,000 Freddie Mac.................................. 1,653,660 1,539,000
----------- -----------
4,191,598 4,044,000
----------- -----------
OTHER FINANCIAL INVESTMENT ACTIVITIES - 1.14%
34,000 Franklin Resources, Inc...................... 1,094,523 1,032,750
----------- -----------
OTHER GENERAL PURPOSE MACHINERY
MANUFACTURING - 1.29%
34,000 Parker-Hannifin Corp......................... 1,506,543 1,164,500
----------- -----------
PETROLEUM AND COAL PRODUCTS MANUFACTURING -
4.70%
17,000 Coastal Corp................................. 719,910 1,034,875
146,000 Conoco, Inc. Class A......................... 3,292,585 3,212,000
----------- -----------
4,012,495 4,246,875
----------- -----------
PULP, PAPER AND PAPERBOARD MILLS - 3.43%
104,000 International Paper Co....................... 3,837,697 3,100,500
----------- -----------
SOFTWARE PUBLISHERS - 1.78%
31,400 Computer Associates International, Inc....... 1,639,966 1,607,288
----------- -----------
SUPPORT ACTIVITIES FOR MINING - 5.16%
48,000 Diamond Offshore Drilling, Inc............... 1,503,710 1,686,000
43,000 Halliburton Co............................... 1,617,161 2,029,063
26,500 Tidewater, Inc............................... 817,090 954,000
----------- -----------
3,937,961 4,669,063
----------- -----------
TOBACCO MANUFACTURING - 1.19%
40,500 Philip Morris Companies, Inc................. 1,661,911 1,075,781
----------- -----------
WIRED TELECOMMUNICATIONS CARRIERS - 3.70%
105,900 AT&T Corp.................................... 3,648,995 3,349,087
----------- -----------
TOTAL COMMON STOCKS.......................... $84,371,554 $85,314,316
=========== ===========
</TABLE>
67
<PAGE>
FORTIS SERIES FUND, INC.
VALUE SERIES (CONTINUED)
Schedule of Investments
June 30, 2000 (Unaudited)
SHORT-TERM INVESTMENTS-5.37%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
---------- -----------
<C> <S> <C>
CONSUMER LENDING - 1.48%
$1,336,000 Associates Corp. Master Variable Rate Note,
Current rate -- 6.53%...................... $ 1,336,000
-----------
DEPOSITORY CREDIT - BANKING - 3.89%
3,517,636 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 6.42%........ 3,517,635
-----------
TOTAL SHORT-TERM INVESTMENTS................. 4,853,635
-----------
TOTAL INVESTMENTS IN SECURITIES
(COST: $89,225,189) (b).................... $90,167,951
===========
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 2000, the cost of securities for federal income tax purposes
was $90,009,867 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 7,465,501
Unrealized depreciation..................................... (7,307,417)
-------------------------------------------------------------------------
Net unrealized appreciation................................. $ 158,084
-------------------------------------------------------------------------
</TABLE>
(c) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
68
<PAGE>
FORTIS SERIES FUND, INC.
CAPITAL OPPORTUNITIES SERIES
Schedule of Investments
June 30, 2000 (Unaudited)
COMMON STOCKS-87.77%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ---------- ----------
<C> <S> <C> <C>
ACCOUNTING, TAX PREPARATION AND PAYROLL
SERVICES - 0.08%
800 Integra S.A. (a)............................. $ 17,004 $ 7,147
---------- ----------
AEROSPACE PRODUCT AND PARTS MANUFACTURING -
1.23%
1,500 Boeing Co.................................... 58,002 62,719
800 Honeywell International, Inc................. 44,331 26,950
400 United Technologies Corp..................... 25,333 23,550
---------- ----------
127,666 113,219
---------- ----------
AGRICULTURE, CONSTRUCTION AND MINING
MACHINERY - 1.02%
1,000 Deere & Co................................... 39,342 37,000
1,400 Ingersoll-Rand Co............................ 60,577 56,350
---------- ----------
99,919 93,350
---------- ----------
CABLE AND OTHER SUBSCRIPTION PROGRAMMING -
1.88%
500 Cablevision Systems Corp. (a)................ 31,765 33,937
1,800 Comcast Corp. Special Class A (a)............ 61,308 72,900
2,500 United Pan-Europe Communications N.V. (a).... 67,946 65,640
---------- ----------
161,019 172,477
---------- ----------
COMMERCIAL AND INDUSTRIAL MACHINERY AND
EQUIPMENT - 0.39%
400 Vivendi S.A.................................. 41,944 35,449
---------- ----------
COMMERCIAL AND SERVICE INDUSTRY MACHINERY
MANUFACTURING - 0.59%
700 Bausch & Lomb, Inc........................... 40,067 54,162
---------- ----------
COMMUNICATIONS EQUIPMENT MANUFACTURING -
6.00%
1,200 ADC Telecommunications, Inc. (with
rights) (a)................................ 66,650 100,650
1,600 Cisco Systems, Inc. (a)...................... 104,550 101,700
200 Extreme Networks, Inc. (a)................... 16,869 21,100
900 Lucent Technologies, Inc..................... 56,306 53,325
3,200 Motorola, Inc................................ 117,878 93,000
1,500 Nokia Oyj Corp. ADR.......................... 77,524 74,906
2,800 Telefonaktiebolaget LM Ericsson AB Class B 58,446 55,706
1,500 WinStar Communications, Inc. (a)............. 57,317 50,812
---------- ----------
555,540 551,199
---------- ----------
COMPUTER AND PERIPHERAL EQUIPMENT
MANUFACTURING - 3.78%
2,300 Cabletron Systems, Inc. (a).................. 49,138 58,075
800 Compaq Computer Corp......................... 22,283 20,450
1,400 Dell Computer Corp. (a)...................... 67,662 69,037
650 EMC Corp. (a)................................ 42,567 50,009
300 Hewlett-Packard Co........................... 31,944 37,462
200 International Business Machines Corp......... 22,862 21,912
1,000 Seagate Technology, Inc. (a)................. 49,280 55,000
20 StorageNetworks, Inc. (a).................... 540 1,805
300 VERITAS Software Corp. (a)................... 28,312 33,905
---------- ----------
314,588 347,655
---------- ----------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ---------- ----------
<C> <S> <C> <C>
COMPUTER SYSTEMS DESIGN AND RELATED SERVICES
- 1.75%
100 Brocade Communications Systems, Inc. (a) $ 10,881 $ 18,348
900 Computer Sciences Corp. (a).................. 67,255 67,219
600 Digex, Inc. (a).............................. 40,006 40,762
165 i2 Technologies, Inc. (a).................... 17,962 17,204
1,200 Unisys Corp. (a)............................. 29,754 17,475
---------- ----------
165,858 161,008
---------- ----------
DEPOSITORY CREDIT-BANKING - 1.38%
1,700 Chase Manhattan Corp......................... 86,198 78,306
800 Citigroup, Inc............................... 49,315 48,200
---------- ----------
135,513 126,506
---------- ----------
ELECTRIC GENERATION, TRANSMISSION AND
DISTRIBUTION - 2.79%
3,600 AES Corp. (a)................................ 140,317 164,250
520 Calpine Corp. (a)............................ 23,703 34,190
600 CMS Energy Corp.............................. 11,439 13,275
2,470 NRG Energy, Inc.............................. 37,050 45,077
---------- ----------
212,509 256,792
---------- ----------
ELECTRONICS AND APPLIANCE STORES - 1.24%
2,400 RadioShack Corp. (with rights)............... 117,625 113,700
---------- ----------
ENGINE, TURBINE AND POWER TRANSMISSION
EQUIPMENT - 0.00%
10 Capstone Turbine Corp. (a)................... 160 451
---------- ----------
GROCERY STORES - 1.29%
3,350 Kroger Co. (a)............................... 61,649 73,909
1,000 Safeway, Inc. (a)............................ 46,192 45,125
---------- ----------
107,841 119,034
---------- ----------
HEALTH AND PERSONAL CARE STORES - 0.44%
1,000 CVS Corp..................................... 44,030 40,000
---------- ----------
INDUSTRIAL MACHINERY MANUFACTURING - 1.53%
500 Applied Materials, Inc. (a).................. 48,719 45,312
500 Lam Research Corp. (a)....................... 19,919 18,750
700 Novellus Systems, Inc. (a)................... 39,956 39,594
500 Teradyne, Inc. (a)........................... 44,672 36,750
---------- ----------
153,266 140,406
---------- ----------
INSURANCE CARRIERS - 3.33%
300 American International Group, Inc............ 30,909 35,250
3,000 AXA Financial, Inc........................... 98,304 102,000
1,800 Hartford Financial Services Group, Inc....... 85,540 100,687
1,900 Lincoln National Corp........................ 59,907 68,637
---------- ----------
274,660 306,574
---------- ----------
INTERNET PUBLISHING AND
BROADCASTING - 0.13%
200 NDS Group plc ADR (a)........................ 8,600 12,200
---------- ----------
INTERNET SERVICE PROVIDERS AND WEB SEARCH
PORTALS - 0.17%
400 KPNQwest N.V. (a)............................ 14,710 15,798
---------- ----------
MANAGEMENT, SCIENTIFIC AND TECH CONSULTING
SERVICES - 1.11%
1,600 Allegiance Telecom, Inc. (a)................. 99,448 102,400
---------- ----------
</TABLE>
69
<PAGE>
FORTIS SERIES FUND, INC.
CAPITAL OPPORTUNITIES SERIES (CONTINUED)
Schedule of Investments
June 30, 2000 (Unaudited)
COMMON STOCKS-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ---------- ----------
<C> <S> <C> <C>
METAL ORE MINING - 0.32%
800 Phelps Dodge Corp............................ $ 40,464 $ 29,750
---------- ----------
MOTION PICTURE AND VIDEO INDUSTRIES - 1.14%
1,800 UnitedGlobalCom, Inc. Class A (a)............ 94,085 84,150
300 Viacom, Inc. Class B (a)..................... 19,542 20,456
---------- ----------
113,627 104,606
---------- ----------
NATURAL GAS DISTRIBUTION - 1.01%
600 Enron Corp................................... 41,455 38,700
1,300 Williams Companies, Inc...................... 49,972 54,194
---------- ----------
91,427 92,894
---------- ----------
NAVIGATIONAL, MEASURING AND CONTROL
INSTRUMENTS - 0.59%
114 Agilent Technologies, Inc. (a)............... 8,978 8,438
700 PE Corp. - PE Biosystems Group............... 42,326 46,112
---------- ----------
51,304 54,550
---------- ----------
NEWSPAPER, PERIODICAL, BOOK AND DATABASE
PUBLISHERS - 0.50%
1,300 Tribune Co................................... 50,540 45,500
---------- ----------
NONDEPOSITORY CREDIT BANKING - 1.95%
2,200 Associates First Capital Corp. Class A....... 48,368 49,088
500 Fannie Mae................................... 29,886 26,094
1,900 Freddie Mac.................................. 87,253 76,950
300 Providian Financial Corp..................... 25,487 27,000
---------- ----------
190,994 179,132
---------- ----------
OIL AND GAS EXTRACTION - 0.66%
1,800 EOG Resources, Inc........................... 43,592 60,300
---------- ----------
OTHER ELECTRICAL EQUIPMENT AND COMPONENT -
3.91%
150 CIENA Corp. (a).............................. 17,431 25,003
1,020 Corning, Inc................................. 171,807 275,273
1,500 Metromedia Fiber Network, Inc. Class A (a) 48,500 59,531
---------- ----------
237,738 359,807
---------- ----------
OTHER INFORMATION SERVICES - 0.28%
500 IMPSAT Fiber Networks, Inc. (a).............. 8,000 8,375
800 VIA NET.WORKS, Inc. (a)...................... 13,550 12,350
100 Vignette Corp. (a)........................... 4,575 5,202
---------- ----------
26,125 25,927
---------- ----------
OTHER TELECOMMUNICATIONS - 7.91%
800 Adelphia Business Solutions, Inc. (with
rights) (a)................................ 30,650 18,550
1,900 AT&T Wireless Group (a)...................... 52,862 52,963
190 China Unicom Ltd. ADR........................ 3,798 4,038
2,300 Completel Europe N.V. (a).................... 38,133 28,662
200 Crown Castle International Corp. (a)......... 6,150 7,300
200 Focal Communications Corp. (a)............... 7,846 7,150
2,800 Nortel Networks Corp......................... 146,622 191,100
1,742 NTL, Inc. (a)................................ 120,658 104,295
300 Qwest Communications International,
Inc. (a)................................... 12,778 14,906
300 Sprint Corp.................................. 17,709 15,300
1,000 Sprint Corp. (PCS Group) (a)................. 53,280 59,500
1,500 Tekelec (a).................................. 55,687 72,281
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ---------- ----------
<C> <S> <C> <C>
600 Time Warner Telecom, Inc. Class A (a)........ $ 28,400 $ 38,625
400 VoiceStream Wireless Corp. (a)............... 50,938 46,519
2,000 Williams Communications Group, Inc. (a)...... 74,654 66,375
---------- ----------
700,165 727,564
---------- ----------
PETROLEUM AND COAL PRODUCTS MANUFACTURING -
3.04%
1,400 Coastal Corp................................. 65,580 85,225
1,700 Conoco, Inc. Class A......................... 39,586 37,400
2,800 Conoco, Inc. Class B......................... 67,733 68,775
1,300 Ultramar Diamond Shamrock Corp............... 35,875 32,256
1,100 Unocal Corp.................................. 36,404 36,438
600 Valero Energy Corp........................... 18,326 19,050
---------- ----------
263,504 279,144
---------- ----------
PHARMACEUTICAL AND MEDICINE MANUFACTURING -
3.95%
600 American Home Products Corp.................. 34,781 35,250
1,500 Bristol-Myers Squibb Co...................... 94,699 87,375
2,750 Pfizer, Inc. (with rights)................... 110,155 132,000
2,100 Pharmacia Corp............................... 113,464 108,544
---------- ----------
353,099 363,169
---------- ----------
PIPELINE TRANSPORTATION OF NATURAL
GAS - 0.30%
400 Dynegy, Inc. Class A......................... 22,462 27,325
---------- ----------
RADIO AND TELEVISION BROADCASTING - 1.48%
700 Hearst-Argyle Television, Inc. (a)........... 14,546 13,650
3,100 Infinity Broadcasting Corp. Class A (a)...... 96,193 112,956
200 Pegasus Communications Corp. (a)............. 8,052 9,813
---------- ----------
118,791 136,419
---------- ----------
SEMICONDUCTOR, ELECTRONIC COMPONENT
MANUFACTURING - 8.43%
800 Analog Devices, Inc. (a)..................... 49,724 60,800
800 Atmel Corp. (a).............................. 41,044 29,500
1,500 Fairchild Semiconductor Corp. Class A........ 56,934 60,750
1,200 Finisar Corp. (a)............................ 39,475 31,425
500 FLAG Telecom Holdings Ltd. (a)............... 7,375 7,438
300 Flextronics International Ltd. (a)........... 19,931 20,606
400 Intel Corp................................... 48,800 53,475
1,100 LSI Logic Corp. (a).......................... 58,047 59,538
1,000 Micron Technology, Inc. (a).................. 62,015 88,063
700 Sanmina Corp. (a)............................ 37,625 59,850
1,700 Solectron Corp. (a).......................... 66,282 71,188
4,900 Tyco International Ltd....................... 220,773 232,138
---------- ----------
708,025 774,771
---------- ----------
SOFTWARE PUBLISHERS - 3.96%
400 BEA Systems, Inc. (a)........................ 14,888 19,775
1,000 BMC Software, Inc. (a)....................... 41,875 36,484
100 Commerce One, Inc. (a)....................... 5,828 4,539
700 Computer Associates International, Inc....... 34,661 35,831
100 Mercury Interactive Corp. (a)................ 7,496 9,675
900 Microsoft Corp. (a).......................... 63,851 72,000
300 Oracle Corp. (a)............................. 18,663 25,219
200 Siebel Systems, Inc. (a)..................... 21,475 32,713
723 VeriSign, Inc. (a)........................... 83,537 127,521
---------- ----------
292,274 363,757
---------- ----------
</TABLE>
70
<PAGE>
COMMON STOCKS-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ---------- ----------
<C> <S> <C> <C>
SUPPORT ACTIVITIES FOR MINING - 6.34%
5,300 Baker Hughes, Inc............................ $ 154,666 $ 169,600
400 BJ Services Co. (a).......................... 24,787 25,000
700 Cooper Cameron Corp. (a)..................... 47,926 46,200
700 Global Marine, Inc. (a)...................... 18,702 19,731
1,600 Grant Prideco, Inc. (a)...................... 30,282 40,000
1,400 Halliburton Co............................... 59,098 66,063
1,600 Noble Drilling Corp. (a)..................... 60,025 65,900
1,400 Transocean Sedco Forex, Inc.................. 68,463 74,813
1,900 Weatherford International, Inc. (a).......... 79,073 75,644
---------- ----------
543,022 582,951
---------- ----------
TELECOMMUNICATIONS RESELLERS - 0.68%
800 Sonera Oyj................................... 41,853 36,619
2,000 Tele1 Europe Holding AB (a).................. 27,336 24,627
100 Tele1 Europe Holdings AB ADR (a)............. 1,225 1,206
---------- ----------
70,414 62,452
---------- ----------
TRAVELER ACCOMMODATION - 0.32%
1,400 Harrah's Entertainment, Inc. (a)............. 30,405 29,313
---------- ----------
WIRED TELECOMMUNICATIONS
CARRIERS - 7.18%
900 Alltel Corp.................................. 59,756 55,744
600 Amdocs Ltd. (a).............................. 43,818 46,050
1,200 AT&T Canada, Inc. (a)........................ 57,581 39,825
1,200 BroadWing, Inc. (a).......................... 32,157 31,125
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ---------- ----------
<C> <S> <C> <C>
14,900 Cable & Wireless Optus Ltd. (a).............. $ 47,214 $ 44,551
2,389 Cable & Wireless plc......................... 43,652 40,472
1,400 Energis plc (a).............................. 63,167 52,223
5,200 Global Crossing Ltd. (a)..................... 158,159 136,825
600 GTE Corp..................................... 42,882 37,350
100 Intermedia Communications, Inc. (a).......... 2,768 2,975
800 MGC Communications, Inc. (a)................. 39,122 47,950
1,000 NEXTLINK Communications, Inc. Class A (a) 29,001 37,938
100 Redback Networks, Inc. (a)................... 14,450 17,800
400 Tellabs, Inc. (a)............................ 25,976 27,375
1,000 Versatel Telecom International N.V. (a)...... 38,577 42,178
---------- ----------
698,280 660,381
---------- ----------
WIRELESS TELECOMMUNICATIONS CARRIERS - 3.69%
4,000 China Telecom (Hong Kong) Ltd. (a)........... 29,225 35,278
1,000 Grupo Iusacell S.A. de C.V. ADR (a).......... 16,405 15,625
2,100 Libertel N.V. (a)............................ 40,012 32,108
2 NTT DoCoMo, Inc.............................. 65,359 54,251
4,800 Partner Communications Co. Ltd. ADR (a)...... 39,113 45,600
2,400 Telesystem International Wireless,
Inc. (a)................................... 66,434 44,400
27,600 Vodafone AirTouch plc........................ 128,013 111,562
---------- ----------
384,561 338,824
---------- ----------
TOTAL COMMON STOCKS.......................... $7,722,780 $8,068,063
========== ==========
</TABLE>
SHORT-TERM INVESTMENTS - 12.01%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
---------- ----------
<C> <S> <C>
DEPOSITORY CREDIT-BANKING - 12.01%
$1,104,496 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 6.42%........ $1,104,496
----------
TOTAL INVESTMENTS IN SECURITIES (COST:
$8,827,276)(b)............................. $9,172,559
==========
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 2000, the cost of securities for federal income tax purposes
was $8,842,055 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation.......................................... $ 746,387
Unrealized depreciation.......................................... (415,883)
------------------------------------------------------------------------------
Net unrealized appreciation...................................... $ 330,504
------------------------------------------------------------------------------
</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 13.58% of total net assets as of June 30, 2000.
71
<PAGE>
FORTIS SERIES FUND, INC.
GROWTH & INCOME SERIES
Schedule of Investments
June 30, 2000 (Unaudited)
COMMON STOCKS-85.13%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
ADVERTISING AND RELATED SERVICES-4.33%
92,000 Interpublic Group of Companies, Inc. $ 3,639,753 $ 3,956,000
45,000 Omnicom Group, Inc........................... 1,934,535 4,007,813
84,000 Young & Rubicam, Inc......................... 4,547,415 4,803,750
------------ ------------
10,121,703 12,767,563
------------ ------------
AEROSPACE PRODUCT AND PARTS
MANUFACTURING-0.53%
46,000 Honeywell International, Inc................. 2,384,192 1,549,625
------------ ------------
AGENCIES, BROKERAGE AND OTHER INSURANCE
ACTIVITIES-2.39%
25,000 J.P. Morgan & Co., Inc....................... 3,581,522 2,753,125
41,000 Marsh & McLennan Companies, Inc. 2,780,477 4,281,938
------------ ------------
6,361,999 7,035,063
------------ ------------
BEVERAGE MANUFACTURING-3.20%
33,500 Anheuser-Busch Cos, Inc...................... 2,289,297 2,502,031
75,000 PepsiCo, Inc................................. 3,161,790 3,332,813
61,700 Seagram Ltd.................................. 3,807,392 3,578,600
------------ ------------
9,258,479 9,413,444
------------ ------------
COMMUNICATIONS EQUIPMENT MANUFACTURING-0.63%
25,200 Cisco Systems, Inc. (a)...................... 1,237,162 1,601,775
2,780 General Motors Corp. Class H................. 207,218 243,945
------------ ------------
1,444,380 1,845,720
------------ ------------
COMPUTER AND PERIPHERAL EQUIPMENT
MANUFACTURING-0.41%
11,000 International Business Machines Corp......... 1,396,972 1,205,188
------------ ------------
COMPUTER SYSTEMS DESIGN AND RELATED
SERVICES-1.51%
83,000 Automatic Data Processing, Inc............... 3,887,357 4,445,688
------------ ------------
DATA PROCESSING, HOSTING AND RELATED
SERVICES-0.45%
27,000 First Data Corp.............................. 1,502,788 1,339,875
------------ ------------
DEPARTMENT STORES-0.83%
75,000 Sears, Roebuck & Co.......................... 2,793,590 2,446,875
------------ ------------
DEPOSITORY CREDIT-BANKING-2.28%
46,500 Citigroup, Inc............................... 2,386,323 2,801,625
60,000 Northern Trust Corp.......................... 3,007,228 3,903,750
------------ ------------
5,393,551 6,705,375
------------ ------------
DRUGS AND DRUGGISTS SUNDRIES
WHOLESALERS-0.58%
23,000 Cardinal Health, Inc......................... 1,489,496 1,702,000
------------ ------------
ELECTRIC GENERATION, TRANSMISSION AND
DISTRIBUTION-2.80%
143,644 AES Corp. (a)................................ 2,599,986 6,553,757
47,900 Montana Power Co............................. 1,702,996 1,691,469
------------ ------------
4,302,982 8,245,226
------------ ------------
GENERAL MEDICAL AND SURGICAL HOSPITALS-2.06%
200,000 HCA - The Healthcare Co...................... 5,226,230 6,075,000
------------ ------------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
INSURANCE CARRIERS-5.27%
34,000 American International Group, Inc............ $ 1,561,170 $ 3,995,000
27,500 Hartford Financial Services Group, Inc....... 1,527,900 1,538,281
220,000 MetLife, Inc. (a)............................ 3,135,000 4,633,750
109,000 UnumProvident Corp........................... 2,172,798 2,186,813
133,200 John Hancock Financial Services, Inc. (a).... 2,264,400 3,155,175
------------ ------------
10,661,268 15,509,019
------------ ------------
MEDICAL EQUIPMENT AND SUPPLIES
MANUFACTURING-0.50%
21,000 Baxter International, Inc. (with rights) 1,497,321 1,476,563
------------ ------------
MOTION PICTURE AND VIDEO INDUSTRIES-2.45%
117,700 Disney (Walt) Co............................. 3,485,885 4,568,231
38,626 Viacom, Inc. Class B (a)..................... 1,757,166 2,633,810
------------ ------------
5,243,051 7,202,041
------------ ------------
NATURAL GAS DISTRIBUTION-2.19%
100,000 Enron Corp................................... 2,928,738 6,450,000
------------ ------------
NEWSPAPER, PERIODICAL, BOOK AND DATABASE
PUBLISHERS-4.44%
100,000 McGraw-Hill Companies, Inc................... 4,094,108 5,400,000
55,000 PRIMEDIA, Inc. (a)........................... 1,746,180 1,251,250
162,000 Reader's Digest Association, Inc. Class A.... 5,059,857 6,439,500
------------ ------------
10,900,145 13,090,750
------------ ------------
NONDEPOSITORY CREDIT BANKING-0.45%
60,000 Associates First Capital Corp. Class A 1,526,130 1,338,750
------------ ------------
OTHER ELECTRICAL EQUIPMENT AND
COMPONENT-1.53%
16,700 Corning, Inc................................. 1,923,983 4,506,913
------------ ------------
OTHER FOOD MANUFACTURING-1.37%
77,000 Nabisco Holdings Corp. Class A............... 3,403,375 4,042,500
------------ ------------
OTHER GENERAL MERCHANDISE STORES-0.76%
39,000 Wal-Mart Stores, Inc......................... 2,282,090 2,247,375
------------ ------------
OTHER MISCELLANEOUS MANUFACTURING-1.19%
66,000 General Electric Co.......................... 2,805,655 3,498,000
------------ ------------
OTHER TELECOMMUNICATIONS-6.53%
80,000 Qwest Communications International,
Inc. (a)................................... 4,019,771 3,975,000
220,000 SBC Communications, Inc...................... 7,204,830 9,515,000
67,000 US West, Inc................................. 2,424,445 5,745,250
------------ ------------
13,649,046 19,235,250
------------ ------------
PETROLEUM AND COAL PRODUCTS
MANUFACTURING-5.87%
152,000 BP Amoco plc ADR............................. 7,191,277 8,597,500
30,000 Coastal Corp................................. 1,506,657 1,826,250
48,800 Exxon Mobil Corp............................. 2,795,018 3,830,800
30,800 Texaco, Inc.................................. 1,757,038 1,640,100
</TABLE>
72
<PAGE>
COMMON STOCKS-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
42,000 Unocal Corp.................................. $ 1,490,299 $ 1,391,250
------------ ------------
14,740,289 17,285,900
------------ ------------
PHARMACEUTICAL AND MEDICINE
MANUFACTURING-9.37%
72,000 Abbott Laboratories.......................... 3,063,424 3,208,500
137,900 American Home Products Corp.................. 6,760,087 8,101,625
38,900 Lilly (Eli) & Co............................. 3,456,950 3,885,138
104,500 Pfizer, Inc. (with rights)................... 3,573,463 5,016,000
77,350 Pharmacia Corp............................... 2,547,719 3,998,028
67,000 Schering-Plough Corp......................... 3,011,442 3,383,500
------------ ------------
22,413,085 27,592,791
------------ ------------
PIPELINE TRANSPORTATION OF NATURAL GAS-3.18%
137,000 Dynegy, Inc. Class A......................... 4,418,866 9,358,812
------------ ------------
SEMICONDUCTOR, ELECTRONIC COMPONENT
MANUFACTURING-3.13%
9,000 Intel Corp................................... 1,227,299 1,203,187
93,000 Texas Instruments, Inc....................... 4,760,332 6,387,937
46,250 Molex, Inc. Class A.......................... 1,594,744 1,618,750
------------ ------------
7,582,375 9,209,874
------------ ------------
SOAP, CLEANING COMPOUND, TOILET
MANUFACTURING-3.31%
130,000 Avon Products, Inc........................... 4,210,862 5,785,000
66,000 Colgate-Palmolive Co......................... 3,666,737 3,951,750
------------ ------------
7,877,599 9,736,750
------------ ------------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
SOFTWARE PUBLISHERS-2.07%
16,000 Adobe Systems, Inc........................... $ 1,871,743 $ 2,080,000
50,100 Microsoft Corp. (a).......................... 5,128,047 4,008,000
------------ ------------
6,999,790 6,088,000
------------ ------------
SUPPORT ACTIVITIES FOR MINING-3.58%
110,000 Halliburton Co............................... 4,427,409 5,190,625
48,000 Schlumberger Ltd............................. 3,184,666 3,582,000
49,500 ENSCO International, Inc..................... 1,574,045 1,772,718
------------ ------------
9,186,120 10,545,343
------------ ------------
TOBACCO MANUFACTURING-1.47%
163,500 Philip Morris Companies, Inc................. 3,884,757 4,342,968
------------ ------------
TOY MANUFACTURING-0.78%
175,000 Mattel, Inc.................................. 2,049,301 2,307,813
------------ ------------
WIRED TELECOMMUNICATIONS CARRIERS-3.69%
86,000 AT&T Corp.................................... 3,075,399 2,719,750
60,000 Bell Atlantic Corp........................... 4,038,987 3,048,750
82,000 GTE Corp..................................... 3,840,836 5,104,500
------------ ------------
10,955,222 10,873,000
------------ ------------
TOTAL COMMON STOCKS.......................... $202,491,925 $250,715,054
============ ============
</TABLE>
PREFERRED STOCKS-4.92%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
CABLE AND OTHER SUBSCRIPTION
PROGRAMMING-1.05%
76,500 MediaOne Group, Inc. Conv. 7.00%............. $ 3,322,969 $ 3,098,250
------------ ------------
PHARMACEUTICAL AND MEDICINE
MANUFACTURING-2.90%
158,000 Biovail Corp., Conv. 6.75%................... 7,900,000 8,551,750
------------ ------------
SOFTWARE PUBLISHERS-0.97%
84,000 PSInet Inc., Conv. 7.00% (f)................. 4,200,000 2,845,500
------------ ------------
TOTAL PREFERRED STOCKS....................... $ 15,422,969 $ 14,495,500
============ ============
</TABLE>
CORPORATE BONDS-INVESTMENT GRADE-1.76%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
---------- ----------- ------------ ------------
<C> <S> <C> <C> <C>
NEWSPAPER, PERIODICAL, BOOK AND DATABASE
PUBLISHERS-1.76%
$4,500,000 Tribune Co., 2.00% Conv. (PHONES-America
Online) 5-15-2029 (e)...................... A- $ 7,065,000 $ 5,186,250
------------ ------------
</TABLE>
73
<PAGE>
FORTIS SERIES FUND, INC.
GROWTH & INCOME SERIES (CONTINUED)
Schedule of Investments
June 30, 2000 (Unaudited)
CORPORATE BONDS-NON-INVESTMENT GRADE-6.47%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Principal & Poor's Market
Amount Rating Cost (b) Value (c)
---------- ----------- ------------ ------------
<C> <S> <C> <C> <C>
CABLE AND OTHER SUBSCRIPTION
PROGRAMMING-1.80%
$5,600,000 Echostar Communications Corp., 4.875% Conv.
1-1-2007 (f)............................... NR $ 5,600,000 $ 5,292,000
------------ ------------
COMMUNITY CARE FACILITIES FOR THE
ELDERLY-0.26%
1,700,000 Assisted Living Concepts, Inc., 5.625% Conv.
5-1-2003 (f)............................... NR 1,700,000 771,375
------------ ------------
ELECTRICAL GOODS WHOLESALERS-0.44%
1,800,000 Efficient Networks, Inc., 5.00% Conv.
3-15-2005 (f).............................. NR 1,800,000 1,298,250
------------ ------------
PHARMACEUTICAL AND MEDICINE
MANUFACTURING-1.87%
5,300,000 Invitrogen Corp., 5.50% Conv. 3-01-2007
(f)........................................ NR 5,300,000 5,512,000
------------ ------------
SEMICONDUCTOR, ELECTRONIC COMPONENT
MANUFACTURING-0.96%
1,600,000 Cypress Semiconductor Corp., 6.00% Conv.
10-1-2002 (f).............................. B 1,600,000 2,836,000
------------ ------------
WIRED TELECOMMUNICATIONS CARRIERS-1.14%
2,500,000 Telefonos de Mexico, S.A., 4.25% Conv.
6-15-2004.................................. BB+ 2,500,000 3,340,625
------------ ------------
TOTAL CORPORATE BONDS - NON-INVESTMENT
GRADE...................................... 18,500,000 19,050,250
============ ============
TOTAL LONG-TERM INVESTMENTS.................. $243,479,894 $289,447,054
============ ============
</TABLE>
SHORT-TERM INVESTMENTS-2.49%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
---------- ------------
<C> <S> <C>
CONSUMER LENDING-0.03%
$ 74,000 Associates Corp. Master Variable Rate Note,
Current rate -- 6.53%...................... $ 74,000
------------
DEPOSITORY CREDIT-BANKING-2.46%
7,249,049 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 6.42%........ 7,249,049
------------
TOTAL SHORT-TERM INVESTMENTS................. 7,323,049
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$250,802,943).............................. $296,770,103
============
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 2000, the cost of securities for federal income tax purposes
was $250,814,731 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $58,334,448
Unrealized depreciation..................................... (12,379,076)
-------------------------------------------------------------------------
Net unrealized appreciation................................. $45,955,372
-------------------------------------------------------------------------
</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 5.27% of total net assets as of June 30, 2000.
(e) 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.
(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 determined to be liquid. The aggregate value of
these securities at June 30, 2000 was $18,555,125 which represents 6.30% of
total net assets.
74
<PAGE>
FORTIS SERIES FUND, INC.
S&P 500 INDEX SERIES
Schedule of Investments
June 30, 2000 (Unaudited)
COMMON STOCKS-97.98%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
BASIC INDUSTRY - 6.29%
7,700 Air Products and Chemicals, Inc.............. $ 295,171 $ 237,256
6,500 American Power Conversion Corp. (a) 230,762 265,281
1,400 Armstrong Holdings, Inc...................... 81,222 21,437
2,400 Ashland, Inc................................. 110,778 84,150
3,800 Avery Dennison Corp.......................... 190,909 255,075
1,800 Bemis Co., Inc............................... 69,726 60,525
1,900 Boise Cascade Corp........................... 64,687 49,163
2,000 Centex Corp.................................. 55,586 47,000
22,200 Dow Chemical Co.............................. 709,595 670,165
35,284 du Pont (E.I.) de Nemours & Co............... 2,200,071 1,543,675
2,600 Eastman Chemical Co.......................... 145,691 124,150
4,400 Ecolab, Inc.................................. 127,761 171,875
4,300 Engelhard Corp............................... 84,586 73,370
2,600 Fluor Corp................................... 122,314 82,225
1,000 FMC Corp. (a)................................ 70,894 58,000
7,200 Fort James Corp.............................. 281,531 166,500
332,900 General Electric Co.......................... 9,447,239 17,643,700
5,700 Georgia-Pacific Group........................ 195,543 149,625
2,400 Grace (W.R.) & Co. (a)....................... 36,934 29,100
1,800 Great Lakes Chemical Corp.(with rights)...... 73,900 56,700
3,600 Hercules, Inc................................ 139,411 50,625
10,100 Illinois Tool Works, Inc..................... 593,198 575,700
18,533 International Paper Co....................... 758,380 552,525
1,600 Kaufman & Broad Home Corp.................... 32,227 31,700
3,133 Kerr-McGee Corp.............................. 171,717 184,651
3,500 Louisiana-Pacific Corp....................... 67,423 38,065
15,100 Masco Corp................................... 401,534 272,745
3,500 Mead Corp.................................... 114,392 88,375
13,300 Minnesota Mining and Manufacturing Co........ 1,151,807 1,097,250
4,400 Novellus Systems, Inc. (a)................... 240,337 248,875
1,900 Owens Corning................................ 69,445 17,575
5,700 Pactiv Corp. (a)............................. 189,831 44,887
1,000 Potlatch Corp................................ 45,205 33,125
5,900 PPG Industries, Inc.......................... 351,868 261,445
5,300 Praxair, Inc................................. 240,386 198,420
1,400 Pulte Corp................................... 29,990 30,275
7,364 Rohm & Haas Co............................... 248,586 254,060
2,843 Sealed Air Corp. (a)......................... 150,475 148,902
5,500 Sherwin-Williams Co.......................... 159,748 116,531
1,800 Temple-Inland, Inc........................... 110,551 75,600
4,500 Union Carbide Corp........................... 221,216 222,750
3,400 Vulcan Materials Co.......................... 162,498 145,137
3,400 Westvaco Corp................................ 100,112 84,365
7,800 Weyerhaeuser Co.............................. 419,352 335,400
3,700 Williamette Industries, Inc.................. 136,977 100,825
3,000 Worthington Industries, Inc.................. 51,212 31,500
------------ ------------
20,952,778 27,030,280
------------ ------------
CAPITAL SPENDING - 35.42%
11,800 3Com Corp. (a)............................... 435,936 679,975
3,500 Adaptec, Inc. (a)............................ 137,551 79,625
11,400 ADC Telecommunications,
Inc. (with rights) (a)..................... 342,891 956,175
4,000 Adobe Systems, Inc........................... 120,991 520,000
5,200 Advanced Micro Devices, Inc. (a)............. 141,912 401,700
15,200 Agilent Technologies, Inc. (a)............... 686,359 1,121,000
6,700 Altera Corp. (a)............................. 567,661 682,981
77,300 America Online, Inc. (a)..................... 3,632,578 4,077,575
11,900 Analog Devices, Inc. (a)..................... 363,083 904,400
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
2,700 Andrew Corp. (with rights) (a)............... $ 65,233 $ 90,620
11,000 Apple Computer, Inc. (a)..................... 203,522 576,125
27,200 Applied Materials, Inc. (a).................. 750,963 2,465,000
2,000 Autodesk, Inc................................ 68,482 69,375
21,100 Automatic Data Processing, Inc............... 687,271 1,130,170
8,200 BMC Software, Inc. (a)....................... 439,591 299,171
30,506 Boeing Co.................................... 1,371,281 1,275,534
800 Briggs & Stratton Corp....................... 37,887 27,400
6,100 Cabletron Systems, Inc. (a).................. 114,156 154,025
11,800 Caterpillar, Inc............................. 602,311 399,725
4,900 Ceridian Corp. (a)........................... 125,208 117,906
234,100 Cisco Systems, Inc. (a)...................... 5,012,697 14,879,981
6,200 Citrix Systems, Inc. (a)..................... 286,012 117,412
57,105 Compaq Computer Corp......................... 1,561,583 1,459,746
19,800 Computer Associates International, Inc....... 895,635 1,013,515
5,600 Computer Sciences Corp. (a).................. 295,014 418,250
12,100 Compuware Corp. (a).......................... 435,252 125,537
5,100 Comverse Technology, Inc. (a)................ 302,581 474,300
7,300 Conexant Systems............................. 622,127 354,962
3,100 Cooper Industries, Inc....................... 164,717 100,945
9,300 Corning, Inc................................. 662,050 2,509,837
5,400 CP&L, Inc.................................... 210,351 172,465
2,175 Crane Co..................................... 63,855 52,879
1,400 Cummins Engine Co., Inc...................... 68,286 38,150
4,800 Danaher Corp................................. 231,787 237,300
7,900 Deere & Co................................... 369,160 292,300
86,600 Dell Computer Corp. (a)...................... 1,977,498 4,270,462
6,800 Dover Corp................................... 225,884 275,825
5,400 Dun & Bradstreet Corp........................ 153,076 154,575
2,400 Eaton Corp................................... 190,657 160,800
15,700 Electronic Data Systems Corp................. 703,521 647,625
73,000 EMC Corp. (a)................................ 1,414,817 5,616,437
14,400 Emerson Electric Co.......................... 836,187 869,400
13,900 First Data Corp.............................. 501,243 689,790
10,800 Gateway, Inc. (a)............................ 354,811 612,900
6,800 General Dynamics Corp........................ 375,271 355,300
5,950 Genuine Parts Co............................. 190,819 119,000
3,600 Goodrich (B.F.) Co........................... 148,206 122,625
33,700 Hewlett-Packard Co........................... 1,766,341 4,208,287
26,862 Honeywell International, Inc................. 1,159,354 904,915
5,450 Ingersoll-Rand Co............................ 246,898 219,362
112,700 Intel Corp................................... 5,931,013 15,066,581
59,700 International Business Machines Corp......... 4,376,574 6,540,881
10,200 Interpublic Group of Companies, Inc. 312,610 438,600
3,000 ITT Industries, Inc.......................... 104,272 91,125
2,900 Johnson Controls, Inc........................ 153,497 148,806
6,300 KLA-Tencor Corp. (a)........................ 181,943 368,945
4,300 Lexmark International Group, Inc.
Class A (a)................................ 289,378 289,175
10,500 Linear Technology Corp....................... 579,362 671,345
13,500 Lockheed Martin Corp......................... 613,402 334,968
10,300 LSI Logic Corp. (a).......................... 187,088 557,487
109,544 Lucent Technologies, Inc..................... 4,323,455 6,490,482
9,500 Maxim Integrated Products, Inc. (a).......... 606,581 645,406
2,000 McDermott International, Inc................. 56,108 17,625
2,700 Mercury Interactive Corp. (a)................ 254,981 261,225
18,700 Micron Technology, Inc. (a).................. 492,352 1,646,770
177,100 Microsoft Corp. (a).......................... 9,662,731 14,168,000
1,600 Millipore Corp............................... 61,090 120,600
6,625 Molex, Inc................................... 269,134 318,828
</TABLE>
75
<PAGE>
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S&P 500 INDEX SERIES (CONTINUED)
Schedule of Investments
June 30, 2000 (Unaudited)
COMMON STOCKS-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
72,376 Motorola, Inc................................ $ 1,560,990 $ 2,103,427
5,900 National Semiconductor Corp. (a)............. 144,639 334,825
3,200 NCR Corp. (a)................................ 123,240 124,600
10,200 Network Appliance, Inc. (a).................. 148,209 821,100
25,500 Nextel Communications, Inc. Class A (a)...... 620,971 1,560,281
99,680 Nortel Networks Corp......................... 1,957,333 6,803,160
2,300 Northrop Grumman Corp........................ 199,135 152,375
11,100 Novell, Inc. (a)............................. 148,407 102,675
6,000 Omnicom Group, Inc........................... 315,409 534,375
95,500 Oracle Corp. (a)............................. 1,308,069 8,027,970
4,200 Pall Corp.................................... 92,712 77,700
9,300 Parametric Technology Corp. (a).............. 192,819 102,300
3,800 Parker-Hannifin Corp......................... 146,523 130,150
12,525 Paychex, Inc................................. 285,583 526,050
7,000 PE Corp.-PE Biosystems Group................. 140,720 461,125
9,300 PeopleSoft, Inc. (a)......................... 237,210 155,775
1,700 PerkinElmer, Inc............................. 48,594 112,412
8,800 Pitney Bowes, Inc............................ 423,124 352,000
24,900 QUALCOMM, Inc. (a)........................... 1,316,318 1,494,000
3,900 Quintiles Transnational Corp. (a)............ 85,010 55,087
11,400 Raytheon Co. Class B......................... 621,158 219,450
6,300 Rockwell International Corp.................. 285,946 198,450
4,313 Sabre Holdings Corp.......................... 205,003 122,920
2,000 Sapient Corp. (a)............................ 204,983 213,875
5,400 Scientific-Atlanta, Inc...................... 81,816 402,300
7,600 Seagate Technology, Inc. (a)................. 251,177 418,000
6,700 Siebel Systems, Inc. (a)..................... 884,094 1,095,870
2,000 Snap-On, Inc................................. 75,916 53,250
20,100 Solectron Corp. (a).......................... 547,214 841,690
3,000 Stanley Works................................ 110,791 71,250
53,400 Sun Microsystems, Inc. (a)................... 1,080,883 4,856,065
1,600 Tektronix, Inc. (a).......................... 58,988 118,400
5,800 Teradyne, Inc. (a)........................... 285,336 426,300
55,100 Texas Instruments, Inc....................... 1,150,008 3,784,681
4,900 Textron, Inc................................. 327,842 266,131
5,200 Thermo Electron Corp. (a)................... 148,063 109,525
2,000 Thomas & Betts Corp.......................... 90,824 38,250
2,100 Timken (The) Co.............................. 50,614 39,112
4,200 TRW, Inc..................................... 222,582 182,175
56,770 Tyco International Ltd....................... 1,779,399 2,689,478
10,500 Unisys Corp. (a)............................. 273,142 152,906
15,800 United Technologies Corp..................... 769,509 930,225
13,200 VERITAS Software Corp. (a)................... 1,729,181 1,491,806
22,400 Xerox Corp................................... 974,652 464,800
10,800 Xilinx, Inc. (a)............................. 486,699 891,675
18,300 Yahoo!, Inc. (a)............................. 3,126,840 2,266,915
2,400 Young & Rubicam, Inc......................... 150,488 137,250
------------ ------------
86,244,291 152,194,349
------------ ------------
CONSUMER CYCLICAL - 7.45%
14,255 Albertson's, Inc............................. 636,100 473,978
4,600 AutoZone, Inc. (a)........................... 131,168 101,200
4,700 Bed Bath & Beyond, Inc. (a).................. 163,731 170,375
6,900 Best Buy Co., Inc. (a)....................... 454,628 436,425
2,900 Black & Decker Corp.......................... 146,236 114,006
3,000 Brunswick Corp............................... 78,141 49,690
6,800 Circuit City Stores-Circuit City Group 171,440 225,675
3,700 Consolidated Stores Corp. (a)................ 123,913 44,400
2,500 Cooper Tire & Rubber Co...................... 53,587 27,815
15,000 Costco Wholesale Corp. (a)................... 407,575 495,000
13,100 CVS Corp..................................... 490,313 524,000
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
5,422 Dana Corp.................................... $ 235,562 $ 114,878
4,200 Darden Restaurants, Inc...................... 58,703 68,250
18,899 Delphi Automotive Systems Corp............... 309,225 275,216
3,100 Dillard's, Inc. Class A...................... 103,945 37,975
11,045 Dollar General Corp.......................... 223,018 215,377
10,500 Eastman Kodak Co............................. 764,191 624,750
7,200 Federated Department Stores, Inc. (a) 308,750 243,000
40,600 Ford Motor Co................................ 1,693,805 1,745,800
28,662 Gap, Inc..................................... 690,438 895,687
18,400 General Motors Corp.......................... 1,068,858 1,068,350
3,200 Grainger (W.W.), Inc......................... 142,208 98,600
1,300 Great Atlantic & Pacific Tea Co., Inc........ 40,541 21,615
10,200 Harley-Davidson, Inc......................... 362,012 392,700
4,300 Harrah's Entertainment, Inc. (a)............. 84,790 90,031
5,800 Hasbro, Inc.................................. 133,854 87,365
12,400 Hilton Hotels Corp........................... 185,676 116,250
77,850 Home Depot, Inc.............................. 2,258,094 3,887,635
8,800 JC Penney Company, Inc....................... 462,701 162,250
16,200 Kmart Corp. (a).............................. 233,621 110,365
11,000 Kohl's Corp. (a)............................. 335,977 611,875
28,100 Kroger Co. (a)............................... 633,929 619,956
14,500 Limited (The), Inc........................... 201,266 313,565
2,000 Liz Claiborne, Inc........................... 84,259 70,500
3,500 Loews Corp................................... 321,460 210,000
1,300 Longs Drug Stores Corp....................... 41,324 28,275
12,900 Lowe's Companies, Inc........................ 477,236 529,706
8,200 Marriott International, Inc. Class A......... 273,675 295,715
14,300 Mattel, Inc.................................. 425,454 188,581
11,200 May Department Stores Co..................... 415,525 268,800
2,800 Maytag Corp.................................. 118,796 103,250
45,000 McDonald's Corp.............................. 1,405,301 1,482,187
2,100 Navistar International Corp. (a)............. 60,252 65,231
9,200 Nike, Inc. Class B........................... 478,362 366,275
4,500 Nordstrom, Inc............................... 131,954 108,565
10,900 Office Depot, Inc. (a)....................... 236,556 68,125
2,600 PACCAR, Inc.................................. 118,083 103,187
1,500 Polaroid Corp................................ 58,990 27,095
6,400 RadioShack Corp. (with rights)............... 150,736 303,200
1,900 Reebok International Ltd. (a)................ 45,752 30,281
8,700 Rite Aid Corp. (a)........................... 257,994 57,095
1,100 Russell Corp................................. 29,706 22,000
16,900 Safeway, Inc. (a)............................ 894,960 762,615
12,500 Sears, Roebuck & Co.......................... 613,645 407,812
600 Springs Industries, Inc. Class A............. 32,931 19,312
16,300 Staples, Inc. (a)............................ 348,046 250,612
6,200 Starbucks Corp. (a).......................... 214,000 236,762
15,300 Target Corp.................................. 663,634 887,400
2,400 Tiffany & Co................................. 154,449 162,000
10,300 TJX Companies, Inc........................... 249,991 193,125
7,900 Toys 'R' Us, Inc. (a)........................ 200,492 115,045
5,000 Tricon Global Restaurants, Inc. (a).......... 189,441 141,250
4,516 Visteon Corp................................. 63,926 54,755
150,000 Wal-Mart Stores, Inc......................... 4,382,118 8,643,750
33,900 Walgreen Co.................................. 662,440 1,091,156
4,000 Wendy's International, Inc................... 94,087 71,250
2,500 Whirlpool Corp............................... 141,998 116,565
4,900 Winn-Dixie Stores, Inc....................... 192,594 70,131
------------ ------------
27,618,163 32,015,662
------------ ------------
CONSUMER DISCRETIONARY - 3.66%
6,400 Allied Waste Industries, Inc. (a)............ 111,843 64,000
10,600 Alltel Corp.................................. 548,344 656,540
</TABLE>
76
<PAGE>
COMMON STOCKS-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
2,200 American Greetings Corp. Class A............. $ 78,994 $ 41,800
20,400 Carnival Corp................................ 892,500 397,800
11,400 Clear Channel Communications, Inc. (a)....... 627,293 855,000
30,200 Comcast Corp. Special Class A (a)............ 842,857 1,223,100
2,400 Deluxe Corp.................................. 81,544 56,550
69,900 Disney (Walt) Co............................. 2,139,316 2,712,995
4,200 Donnelley (R.R.) & Sons Co................... 155,320 94,765
3,000 Dow Jones & Co., Inc......................... 142,300 219,750
9,200 Gannett Co., Inc............................. 534,127 550,275
5,300 Goodyear Tire & Rubber Co.................... 302,767 106,000
2,400 Harcourt General, Inc........................ 100,428 130,500
2,600 Knight Ridder, Inc........................... 136,993 138,290
6,600 Leggett & Platt, Inc......................... 144,975 108,900
6,500 McGraw-Hill Companies, Inc................... 253,637 351,000
1,700 Meredith Corp................................ 56,529 57,375
5,700 New York Times Co. Class A................... 167,229 225,150
2,000 Ryder System, Inc............................ 58,541 37,875
44,300 Time Warner, Inc............................. 2,073,477 3,366,800
10,400 Tribune Co................................... 301,512 364,000
3,900 V.F. Corp.................................... 176,210 92,868
51,289 Viacom, Inc. Class B (a)..................... 1,458,801 3,497,268
20,905 Waste Management, Inc........................ 945,241 397,195
------------ ------------
12,330,778 15,745,796
------------ ------------
CONSUMER STAPLES - 5.82%
1,900 Alberto-Culver Co. Class B................... 51,567 58,070
15,400 Anheuser-Busch Companies, Inc................ 817,896 1,150,190
20,276 Archer-Daniels-Midland Co.................... 345,453 198,960
8,000 Avon Products, Inc........................... 303,923 356,000
9,200 BestFoods.................................... 442,092 637,100
2,300 Brown-Forman Corp. Class B................... 128,476 123,625
14,200 Campbell Soup Co............................. 673,489 413,575
7,900 Clorox Co.................................... 353,227 354,020
83,300 Coca-Cola Co................................. 5,405,174 4,784,543
14,200 Coca-Cola Enterprises, Inc................... 429,914 231,640
19,400 Colgate-Palmolive Co......................... 760,649 1,161,575
16,600 ConAgra, Inc................................. 483,076 316,437
1,200 Coors (Adolph) Co. Class B................... 55,173 72,600
5,400 Fortune Brands, Inc.......................... 190,529 124,537
10,000 General Mills, Inc........................... 356,306 382,500
35,500 Gillette Co.................................. 1,704,078 1,240,281
11,900 Heinz (H.J.) Co.............................. 585,506 520,625
4,600 Hershey Foods Corp........................... 275,330 223,962
3,500 International Flavors & Fragrances, Inc...... 156,668 105,656
13,600 Kellogg Co................................... 518,339 404,600
18,700 Kimberly-Clark Corp.......................... 953,147 1,072,912
11,000 Nabisco Group Holdings Corp.................. 220,941 285,312
1,400 National Service Industries, Inc............. 53,967 27,300
9,389 Newell Rubbermaid, Inc....................... 374,183 241,766
48,500 PepsiCo, Inc................................. 1,737,490 2,155,218
76,900 Philip Morris Companies, Inc................. 3,191,932 2,042,656
44,000 Procter & Gamble Co.......................... 3,465,936 2,519,000
4,400 Quaker Oats Co............................... 228,288 330,550
10,300 Ralston-Ralston Purina Group................. 224,236 205,356
30,100 Sara Lee Corp................................ 731,136 581,306
14,700 Seagram Ltd.................................. 618,652 852,600
4,600 Supervalu, Inc............................... 94,275 87,687
11,200 Sysco Corp................................... 267,775 471,800
1,900 Tupperware Corp.............................. 55,559 41,800
19,196 Unilever N.V. NY Shares...................... 1,313,196 825,428
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
5,700 UST, Inc..................................... $ 173,098 $ 83,718
3,800 Wrigley (Wm.) Jr. Co......................... 291,222 304,712
------------ ------------
28,031,898 24,989,617
------------ ------------
ENERGY & RELATED - 6.04%
3,000 Amerada Hess Corp............................ 163,413 185,250
4,300 Anadarko Petroleum Corp...................... 150,880 212,043
3,800 Apache Corp.................................. 127,993 223,487
7,205 Burlington Resources, Inc.................... 297,836 275,591
21,900 Chevron Corp................................. 1,747,758 1,857,393
3,800 CMS Energy Corp.............................. 166,728 84,075
7,200 Coastal Corp................................. 229,801 438,300
2,700 Columbia Energy Group........................ 135,661 177,187
21,002 Conoco, Inc. Class B......................... 540,310 515,861
12,353 Duke Energy Corp............................. 660,491 696,400
900 Eastern Enterprises.......................... 37,895 56,700
7,800 El Paso Energy Corp.......................... 316,324 397,312
24,600 Enron Corp................................... 706,669 1,586,700
117,148 Exxon Mobil Corp............................. 7,517,057 9,196,118
14,900 Halliburton Co............................... 589,456 703,093
1,600 Nicor, Inc................................... 59,858 52,200
12,400 Occidental Petroleum Corp.................... 288,189 261,175
1,000 ONEOK, Inc................................... 32,259 25,937
1,200 Peoples Energy Corp.......................... 42,745 38,850
8,500 Phillips Petroleum Co........................ 382,150 430,843
3,200 Rowan Companies, Inc. (a).................... 66,231 97,200
72,200 Royal Dutch Petroleum Co. NY Shares 3,720,429 4,444,812
19,100 Schlumberger Ltd............................. 1,074,952 1,425,337
3,000 Sunoco, Inc.................................. 105,000 88,312
18,600 Texaco, Inc.................................. 1,051,525 990,450
4,900 Tosco Corp................................... 130,480 138,731
8,492 Union Pacific Resources Group, Inc........... 168,017 186,824
8,200 Unocal Corp.................................. 307,472 271,625
10,500 USX-Marathon Group (with rights)............. 315,318 263,156
14,900 Williams Companies, Inc...................... 467,254 621,143
------------ ------------
21,600,151 25,942,105
------------ ------------
FINANCE - 12.61%
4,744 Aetna, Inc. (with rights).................... 388,877 304,505
8,900 AFLAC, Inc................................... 456,274 408,843
25,100 Allstate Corp................................ 983,887 558,475
45,000 American Express Co.......................... 1,410,951 2,345,625
8,310 American General Corp........................ 500,224 506,910
51,915 American International Group, Inc............ 3,472,888 6,100,012
13,200 AmSouth Bancorporation....................... 356,847 207,900
8,625 Aon Corp..................................... 325,042 267,914
24,512 Associates First Capital Corp. Class A 764,274 546,924
55,794 Bank of America Corp......................... 3,610,848 2,399,142
24,800 Bank of New York Co., Inc.................... 725,194 1,153,200
38,632 Bank One Corp................................ 1,885,612 1,026,162
11,700 BB&T Corp.................................... 393,376 279,337
3,747 Bear Stearns Companies, Inc.................. 172,671 155,968
6,600 Capital One Financial Corp................... 282,886 294,525
24,236 Cendant Corp. (a)............................ 557,091 339,304
7,100 Charter One Financial, Inc................... 173,317 163,300
41,650 Chase Manhattan Corp......................... 1,891,451 1,918,503
5,900 Chubb Corp. (with rights).................... 385,493 362,850
5,600 CIGNA Corp................................... 389,288 523,600
5,400 Cincinnati Financial Corp.................... 225,988 169,762
113,536 Citigroup, Inc............................... 4,121,293 6,840,544
5,250 Comerica, Inc................................ 288,101 235,593
10,982 Conseco, Inc................................. 409,457 107,074
</TABLE>
77
<PAGE>
FORTIS SERIES FUND, INC.
S&P 500 INDEX SERIES (CONTINUED)
Schedule of Investments
June 30, 2000 (Unaudited)
COMMON STOCKS-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
3,800 Countrywide Credit Industries, Inc........... $ 155,746 $ 115,187
4,800 Equifax, Inc................................. 164,680 126,000
33,900 Fannie Mae................................... 1,943,286 1,769,156
10,425 Fifth Third Bancorp.......................... 583,493 659,381
32,970 First Union Corp............................. 1,613,762 818,068
32,673 Firstar Corp................................. 946,566 688,175
30,325 FleetBoston Financial Corp................... 1,120,207 1,031,050
8,200 Franklin Resources, Inc...................... 379,783 249,075
23,400 Freddie Mac.................................. 1,046,836 947,700
5,400 Golden West Financial Corp................... 155,505 220,387
3,300 H & R Block, Inc............................. 134,645 106,837
7,300 Hartford Financial Services Group, Inc....... 361,068 408,343
15,873 Household International, Inc................. 627,118 659,721
7,628 Huntington Bancshares, Inc................... 218,604 120,617
5,700 J.P. Morgan & Co., Inc....................... 665,270 627,712
3,450 Jefferson-Pilot Corp......................... 196,195 194,709
14,800 KeyCorp...................................... 464,634 260,850
4,100 Lehman Brothers Holdings, Inc................ 237,706 387,706
6,500 Lincoln National Corp........................ 260,017 234,812
9,050 Marsh & McLennan Companies, Inc. 533,283 945,159
3,300 MBIA, Inc.................................... 206,285 159,018
26,975 MBNA Corp.................................... 574,344 731,696
16,800 Mellon Financial Corp........................ 491,411 612,150
13,100 Merrill Lynch & Co., Inc..................... 961,195 1,506,500
3,600 MGIC Investment Corp......................... 170,396 163,800
38,130 Morgan Stanley Dean Witter & Co.............. 1,382,789 3,174,322
20,400 National City Corp........................... 656,755 348,075
7,500 Northern Trust Corp.......................... 292,339 487,968
4,620 Old Kent Financial Corp...................... 175,335 123,585
4,900 Paine Webber Group, Inc...................... 211,901 222,950
9,800 PNC Bank Corp................................ 490,768 459,375
4,100 Price (T. Rowe) Associates, Inc.............. 131,950 174,250
2,500 Progressive Corp. (The)...................... 303,482 185,000
4,750 Providian Financial Corp..................... 247,810 427,500
7,400 Regions Financial Corp....................... 263,586 147,075
4,300 SAFECO Corp.................................. 191,274 85,462
45,800 Schwab (Charles) Corp........................ 738,791 1,540,025
5,300 SLM Holding Corp............................. 246,601 198,418
5,700 SouthTrust Corp.............................. 225,419 128,962
7,558 St. Paul Companies, Inc...................... 275,891 257,916
5,400 State Street Corp............................ 346,652 572,737
5,900 Summit Bancorp, Inc.......................... 266,093 145,287
10,600 SunTrust Banks, Inc.......................... 725,915 484,287
9,550 Synovus Financial Corp. (with rights) 205,607 168,318
4,400 Torchmark Corp............................... 145,264 108,625
25,271 U.S. Bancorp................................. 834,261 486,466
4,700 Union Planters Corp.......................... 225,451 131,306
8,066 UnumProvident Corp........................... 383,829 161,824
6,800 Wachovia Corp................................ 527,191 368,900
19,072 Washington Mutual, Inc....................... 756,126 550,704
54,200 Wells Fargo & Co............................. 1,882,507 2,100,250
------------ ------------
50,516,952 54,199,368
------------ ------------
HEALTH CARE - 11.50%
52,100 Abbott Laboratories.......................... 1,975,650 2,321,706
4,400 Allergan, Inc................................ 124,936 327,800
3,500 ALZA Corp. (a)............................... 148,261 206,937
4,600 Ameren Corp.................................. 177,581 155,250
43,900 American Home Products Corp.................. 2,013,885 2,579,125
34,600 Amgen, Inc. (with rights) (a)................ 754,266 2,430,650
1,700 Bard (C.R.), Inc............................. 66,283 81,812
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
1,800 Bausch & Lomb, Inc........................... $ 90,308 $ 139,275
9,800 Baxter International, Inc. (with rights) 539,705 689,062
8,500 Becton, Dickinson and Co..................... 254,138 243,843
5,000 Biogen, Inc. (a)............................. 460,938 322,500
4,000 Biomet, Inc.................................. 117,828 153,750
13,700 Boston Scientific Corp. (a).................. 416,258 300,543
66,400 Bristol-Myers Squibb Co...................... 3,374,298 3,867,800
9,300 Cardinal Health, Inc......................... 581,543 688,200
10,300 Guidant Corp. (a)............................ 380,119 509,850
18,750 HCA - The Healthcare Co...................... 501,641 569,531
13,000 HEALTHSOUTH Corp. (a)........................ 266,459 93,437
5,600 Humana, Inc. (a)............................. 104,437 27,300
10,200 IMS Health, Inc.............................. 225,091 183,600
46,800 Johnson & Johnson............................ 3,482,372 4,767,750
38,000 Lilly (Eli) & Co............................. 2,507,232 3,795,250
2,300 Mallinckrodt, Inc............................ 76,040 99,906
3,400 Manor Care, Inc. (a)......................... 100,459 23,800
9,518 McKesson HBOC, Inc........................... 623,131 199,283
7,000 MedImmune, Inc. (a).......................... 460,688 518,000
40,300 Medtronic, Inc. (with rights)................ 1,223,251 2,007,443
77,400 Merck & Co., Inc............................. 4,829,829 5,930,775
212,200 Pfizer, Inc. (with rights)................... 5,682,553 10,185,600
42,744 Pharmacia Corp............................... 1,772,038 2,209,330
49,300 Schering-Plough Corp......................... 1,879,237 2,489,650
2,900 Sigma-Aldrich Corp........................... 97,046 84,825
2,800 St. Jude Medical, Inc. (a)................... 93,812 128,450
10,500 Tenet Healthcare Corp. (a)................... 281,577 283,500
5,600 UnitedHealth Group, Inc...................... 292,570 480,200
3,200 Watson Pharmaceuticals, Inc. (a)............. 138,939 172,000
2,100 Wellpoint Health Networks, Inc. (a).......... 181,176 152,118
------------ ------------
36,295,575 49,419,851
------------ ------------
METAL & MINING - 0.79%
7,400 Alcan Aluminium Ltd.......................... 224,718 229,400
29,052 Alcoa, Inc................................... 642,539 842,508
2,846 Allegheny Technologies, Inc.................. 121,697 51,228
11,100 Baker Hughes, Inc............................ 314,299 355,200
1,000 Ball Corp.................................... 39,046 32,187
13,300 Barrick Gold Corp............................ 273,149 241,893
4,400 Bethlehem Steel Corp. (a).................... 42,826 15,675
4,300 Crown Cork & Seal Co., Inc................... 172,920 64,500
5,400 Freeport-McMoRan Copper & Gold, Inc.
Class B (a)................................ 109,534 49,950
8,800 Homestake Mining Co.......................... 94,686 60,500
6,400 Inco Ltd. (a)................................ 127,583 98,400
5,601 Newmont Mining Corp.......................... 154,107 121,121
2,900 Nucor Corp................................... 143,104 96,243
5,000 Owens-Illinois, Inc. (a)..................... 172,165 58,437
2,660 Phelps Dodge Corp............................ 153,311 98,918
11,000 Placer Dome, Inc............................. 151,921 105,187
5,000 Sanmina Corp. (a)............................ 419,350 427,500
7,100 Transocean Sedco Forex, Inc.................. 247,882 379,406
3,000 USX-U.S. Steel Group......................... 87,925 55,687
------------ ------------
3,692,762 3,383,940
------------ ------------
TRANSPORTATION - 0.58%
5,000 AMR Corp. (a)................................ 141,214 132,187
15,100 Burlington Northern Santa Fe Corp............ 474,549 346,356
7,400 CSX Corp..................................... 351,531 156,787
4,300 Delta Air Lines, Inc......................... 239,259 217,418
9,760 FedEx Corp. (a).............................. 345,698 370,880
3,800 Kansas City Southern Industries, Inc. 217,451 337,012
</TABLE>
78
<PAGE>
COMMON STOCKS-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
12,900 Norfolk Southern Corp........................ $ 395,607 $ 191,887
16,737 Southwest Airlines Co........................ 219,343 316,956
8,300 Union Pacific Corp........................... 465,021 308,656
2,400 US Airways Group, Inc. (a)................... 132,583 93,600
------------ ------------
2,982,256 2,471,739
------------ ------------
UTILITIES - 7.82%
14,300 AES Corp. (a)................................ 318,656 652,437
10,800 American Electric Power Co., Inc............. 460,608 319,950
126,287 AT&T Corp.................................... 4,543,545 3,993,826
52,018 Bell Atlantic Corp........................... 2,400,293 2,643,164
63,300 BellSouth Corp............................... 2,087,830 2,698,162
4,700 CenturyTel, Inc.............................. 208,209 135,125
5,300 Cinergy Corp................................. 174,503 134,818
7,300 Consolidated Edison, Inc..................... 292,296 216,262
5,000 Constellation Energy Group................... 143,440 162,812
5,200 Convergys Corp. (a).......................... 243,500 269,750
7,994 Dominion Resources, Inc...................... 304,765 342,742
4,800 DTE Energy Co................................ 172,276 146,700
11,500 Edison International......................... 288,993 235,750
8,200 Entergy Corp................................. 226,322 222,937
7,800 FirstEnergy Corp............................. 213,514 182,325
3,300 Florida Progress Corp........................ 139,955 154,687
6,000 FPL Group, Inc............................... 326,192 297,000
29,690 Global Crossing Ltd. (a)..................... 702,195 781,218
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
4,100 GPU, Inc..................................... $ 154,790 $ 110,956
32,400 GTE Corp..................................... 1,800,581 2,016,900
3,900 New Century Energies, Inc.................... 176,219 117,000
5,900 Niagara Mohawk Holdings, Inc. (a)............ 79,816 82,231
5,300 Northern States Power Co..................... 135,086 106,993
6,200 PECO Energy Co............................... 188,007 249,937
13,000 PG&E Corp.................................... 371,000 320,125
2,900 Pinnacle West Capital Corp................... 108,196 98,237
4,900 PPL Corp..................................... 121,394 107,493
7,300 Public Service Enterprise Group, Inc. 237,118 252,762
9,974 Reliant Energy, Inc.......................... 257,170 294,856
114,436 SBC Communications, Inc...................... 4,352,890 4,949,357
6,855 Sempra Energy................................ 173,033 116,535
22,300 Southern Co.................................. 556,877 519,868
29,500 Sprint Corp.................................. 982,971 1,504,500
30,800 Sprint Corp. (PCS Group) (a)................. 523,834 1,832,600
13,800 Tellabs, Inc. (a)............................ 531,879 944,437
9,202 TXU Corp..................................... 378,057 271,459
6,000 Unicom Corp.................................. 202,476 232,125
17,119 US West, Inc................................. 816,966 1,467,954
96,336 WorldCom, Inc. (a)........................... 3,463,851 4,419,414
------------ ------------
28,859,303 33,605,404
------------ ------------
TOTAL COMMON STOCKS.......................... $319,124,907 $420,998,111
============ ============
</TABLE>
SHORT-TERM INVESTMENTS - 1.82%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
---------- ------------
<C> <S> <C>
DEPOSITORY CREDIT-BANKING - 1.61%
$6,944,661 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 6.43%........ $ 6,944,661
------------
U.S. TREASURY BILLS - 0.21%
910,000 U.S. Treasury Bill, 5.78% 9-21-2000 (e)...... 898,209
------------
TOTAL SHORT-TERM INVESTMENTS................. 7,842,870
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$326,967,777)(b)........................... $428,840,981
============
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 2000, the cost of securities for federal income tax purposes
was $327,100,408 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation.......................................... $132,265,451
Unrealized depreciation.......................................... (30,524,878)
-------------------------------------------------------------------------------
Net unrealized appreciation...................................... $101,740,573
-------------------------------------------------------------------------------
</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 3.21% of total net assets as of June 30, 2000.
(e) Security pledged as initial margin deposit for open financial futures
position detailed below:
<TABLE>
FINANCIAL FUTURES-LONG
Unrealized
Market Appreciation/
Value (Depreciation)
Number of Covered by at
Issuer Contract(s) Contract(s) Expiration 6/30/2000
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
September
Standard & Poor's 500....................................... 22 $8,074,550 2000 $(100,025)
</TABLE>
79
<PAGE>
FORTIS SERIES FUND, INC.
BLUE CHIP STOCK SERIES
Schedule of Investments
June 30, 2000 (Unaudited)
COMMON STOCKS-97.42%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
---------- ------------ ------------
<C> <S> <C> <C>
ADVERTISING AND RELATED SERVICES - 0.71%
24,400 Omnicom Group, Inc........................... $ 1,432,898 $ 2,173,125
------------ ------------
AEROSPACE PRODUCT AND PARTS MANUFACTURING -
0.42%
21,900 United Technologies Corp..................... 1,299,279 1,289,362
------------ ------------
AGENCIES, BROKERAGE AND OTHER INSURANCE
ACTIVITIES - 0.90%
26,300 Marsh & McLennan Companies, Inc. 1,877,308 2,746,706
------------ ------------
BEVERAGE MANUFACTURING - 1.53%
28,200 Coca-Cola Co................................. 1,554,887 1,619,738
68,800 PepsiCo, Inc................................. 2,510,591 3,057,300
------------ ------------
4,065,478 4,677,038
------------ ------------
BUILDING MATERIALS AND SUPPLIES DEALERS -
1.44%
67,200 Home Depot, Inc.............................. 2,222,716 3,355,800
25,800 Lowe's Companies, Inc........................ 1,385,282 1,059,412
------------ ------------
3,607,998 4,415,212
------------ ------------
CABLE AND OTHER SUBSCRIPTION PROGRAMMING -
0.29%
22,200 Comcast Corp. Special Class A (a)............ 838,314 899,100
------------ ------------
CLOTHING STORES - 0.00%
400 Gap, Inc..................................... 21,191 12,500
------------ ------------
COMMUNICATIONS EQUIPMENT MANUFACTURING -
4.20%
127,600 Cisco Systems, Inc. (a)...................... 3,214,218 8,110,575
48,500 Ericsson (L.M.) Telephone Co. Class B ADR.... 1,046,441 970,000
1,200 Motorola, Inc................................ 72,140 34,875
70,500 Nokia Oyj Corp. ADR.......................... 1,193,840 3,520,594
4,000 QUALCOMM, Inc. (a)........................... 366,630 240,000
------------ ------------
5,893,269 12,876,044
------------ ------------
COMPUTER AND PERIPHERAL EQUIPMENT
MANUFACTURING - 4.10%
81,500 Dell Computer Corp. (a)...................... 3,298,874 4,018,969
9,600 EMC Corp. (a)................................ 170,862 738,600
25,900 Hewlett-Packard Co........................... 1,691,270 3,234,263
400 Lexmark International Group, Inc.
Class A (a)................................ 46,125 26,900
23,300 Sun Microsystems, Inc. (a)................... 671,840 2,118,844
21,450 VERITAS Software Corp. (a)................... 1,071,859 2,424,185
------------ ------------
6,950,830 12,561,761
------------ ------------
COMPUTER SYSTEMS DESIGN AND RELATED SERVICES
- 1.32%
13,700 Ariba, Inc. (a).............................. 1,011,825 1,343,242
50,400 Automatic Data Processing, Inc............... 1,619,207 2,699,550
------------ ------------
2,631,032 4,042,792
------------ ------------
CONVERTED PAPER PRODUCT MANUFACTURING - 0.44%
23,300 Kimberly-Clark Corp.......................... 1,414,309 1,336,838
------------ ------------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
---------- ------------ ------------
<C> <S> <C> <C>
DATA PROCESSING, HOSTING AND RELATED SERVICES
- 0.87%
53,900 First Data Corp.............................. $ 2,200,058 $ 2,674,788
------------ ------------
DEPARTMENT STORES - 0.47%
24,700 Target Corp.................................. 1,518,417 1,432,600
------------ ------------
DEPOSITORY CREDIT-BANKING - 8.16%
16,200 Bank of America Corp......................... 1,064,771 696,600
75,200 Bank of New York Co., Inc.................... 2,557,106 3,496,800
12,150 Chase Manhattan Corp......................... 641,062 559,659
149,273 Citigroup, Inc............................... 5,500,017 8,993,698
112,300 Firstar Corp................................. 2,736,887 2,365,319
76,900 Mellon Financial Corp........................ 2,363,698 2,802,044
31,400 State Street Corp............................ 2,467,507 3,330,362
71,300 Wells Fargo & Co............................. 2,590,599 2,762,875
------------ ------------
19,921,647 25,007,357
------------ ------------
ELECTROMEDICAL MANUFACTURING - 1.22%
5,600 Medtronic, Inc. (with rights)................ 263,960 278,950
27,600 Waters Corp. (a)............................. 1,741,623 3,444,825
------------ ------------
2,005,583 3,723,775
------------ ------------
ELECTRONICS AND APPLIANCE STORES - 0.07%
6,900 Circuit City Stores-Circuit City Group....... 389,072 228,994
------------ ------------
GRAIN AND OILSEED MILLING - 0.19%
7,900 Quaker Oats Co............................... 500,089 593,487
------------ ------------
GROCERY STORES - 1.85%
85,000 Kroger Co. (a)............................... 2,088,245 1,875,312
84,200 Safeway, Inc. (a)............................ 3,333,112 3,799,525
------------ ------------
5,421,357 5,674,837
------------ ------------
HEALTH AND PERSONAL CARE STORES - 0.75%
57,642 CVS Corp..................................... 2,252,420 2,305,680
------------ ------------
INDUSTRIAL MACHINERY MANUFACTURING - 1.14%
38,400 Applied Materials, Inc. (a).................. 1,482,540 3,480,000
------------ ------------
INSURANCE CARRIERS - 3.88%
75,200 Ace Ltd...................................... 1,878,392 2,105,600
12,400 American International Group, Inc............ 1,067,751 1,457,000
23,100 CIGNA Corp................................... 1,835,123 2,159,850
52,400 UnitedHealth Group, Inc...................... 2,795,039 4,493,300
23,300 Wellpoint Health Networks, Inc. (a) 1,782,231 1,687,794
------------ ------------
9,358,536 11,903,544
------------ ------------
LIMITED-SERVICE EATING PLACES - 0.22%
20,100 McDonald's Corp.............................. 782,268 662,044
------------ ------------
MEDICAL EQUIPMENT AND SUPPLIES MANUFACTURING
- 0.91%
32,100 Baxter International, Inc. (with rights)..... 1,984,968 2,257,031
5,300 Johnson & Johnson............................ 497,934 539,938
------------ ------------
2,482,902 2,796,969
------------ ------------
</TABLE>
80
<PAGE>
COMMON STOCKS-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
---------- ------------ ------------
<C> <S> <C> <C>
MOTION PICTURE AND VIDEO INDUSTRIES - 3.20%
52,600 AT&T Corp. - Liberty Media Group
Class A (a)................................ $ 1,164,694 $ 1,275,550
39,100 Clear Channel Communications, Inc. (a)....... 2,578,841 2,932,500
82,096 Viacom, Inc. Class B (a)..................... 2,591,511 5,597,921
------------ ------------
6,335,046 9,805,971
------------ ------------
NAVIGATIONAL, MEASURING AND CONTROL
INSTRUMENTS - 1.11%
9,877 Agilent Technologies, Inc. (a)............... 475,297 728,429
36,500 Danaher Corp................................. 1,270,879 1,804,469
13,000 PE Corp. - PE Biosystems Group............... 1,135,951 856,375
------------ ------------
2,882,127 3,389,273
------------ ------------
NEWSPAPER, PERIODICAL, BOOK AND DATABASE
PUBLISHERS - 0.20%
8,100 Time Warner, Inc............................. 544,600 615,600
------------ ------------
NONDEPOSITORY CREDIT BANKING - 5.20%
60,000 American Express Co.......................... 2,182,753 3,127,500
33,300 Associates First Capital Corp. Class A....... 1,140,442 743,006
53,800 Capital One Financial Corp................... 1,917,058 2,400,825
61,100 Fannie Mae................................... 3,639,306 3,188,656
132,700 Freddie Mac.................................. 6,640,922 5,374,350
12,100 Providian Financial Corp..................... 1,046,388 1,089,000
------------ ------------
16,566,869 15,923,337
------------ ------------
OTHER CHEMICAL AND PREPARATION MANUFACTURING
- 0.03%
1,600 Eastman Kodak Co............................. 122,619 95,200
------------ ------------
OTHER ELECTRICAL EQUIPMENT AND COMPONENT -
2.65%
27,300 Corning, Inc................................. 1,725,830 7,367,588
15,800 Philips Electronics N.V. ADR................. 714,443 750,500
------------ ------------
2,440,273 8,118,088
------------ ------------
OTHER FABRICATED METAL PRODUCT MANUFACTURING
- 0.02%
4,000 Masco Corp................................... 120,939 72,250
------------ ------------
OTHER GENERAL MERCHANDISE STORES - 1.45%
76,900 Wal-Mart Stores, Inc......................... 2,656,560 4,431,362
------------ ------------
OTHER INFORMATION SERVICES - 1.78%
84,600 America Online, Inc. (a)..................... 3,991,900 4,462,650
8,000 Yahoo!, Inc. (a)............................. 950,737 991,000
------------ ------------
4,942,637 5,453,650
------------ ------------
OTHER MISCELLANEOUS MANUFACTURING - 2.29%
132,600 General Electric Co.......................... 4,313,174 7,027,800
------------ ------------
OTHER TELECOMMUNICATIONS - 3.62%
49,400 Nextel Communications, Inc. Class A (a)...... 2,160,622 3,022,662
49,100 Nortel Networks Corp......................... 2,843,824 3,351,075
11,700 Sprint Corp. (PCS Group) (a)................. 666,371 696,150
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
---------- ------------ ------------
<C> <S> <C> <C>
87,596 WorldCom, Inc. (a)........................... $ 3,145,810 $ 4,018,466
------------ ------------
8,816,627 11,088,353
------------ ------------
PETROLEUM AND COAL PRODUCTS MANUFACTURING -
3.72%
12,100 Amerada Hess Corp............................ 778,144 747,175
32,000 BP Amoco plc ADR............................. 1,469,502 1,810,000
31,600 Chevron Corp................................. 2,789,233 2,680,075
51,080 Exxon Mobil Corp............................. 3,232,780 4,009,780
34,800 Royal Dutch Petroleum Co. NY Shares.......... 2,082,026 2,142,375
------------ ------------
10,351,685 11,389,405
------------ ------------
PHARMACEUTICAL AND MEDICINE MANUFACTURING -
10.64%
52,700 American Home Products Corp.................. 2,578,293 3,096,125
23,500 Amgen, Inc. (with rights) (a)................ 804,755 1,650,875
22,200 Bristol-Myers Squibb Co...................... 1,453,540 1,293,150
32,000 Lilly (Eli) & Co............................. 2,457,773 3,196,000
24,600 MedImmune, Inc. (a).......................... 1,255,366 1,820,400
28,500 Merck & Co., Inc............................. 2,001,119 2,183,812
294,000 Pfizer, Inc. (with rights)................... 7,989,542 14,112,000
48,857 Pharmacia Corp............................... 2,113,174 2,525,296
53,900 Schering-Plough Corp......................... 2,401,951 2,721,950
------------ ------------
23,055,513 32,599,608
------------ ------------
RADIO AND TELEVISION BROADCASTING - 0.59%
49,900 Infinity Broadcasting Corp. Class A (a)...... 1,140,512 1,818,231
------------ ------------
RAIL TRANSPORTATION - 0.69%
23,900 Kansas City Southern Industries, Inc......... 1,628,964 2,119,631
------------ ------------
SCIENTIFIC RESEARCH AND DEVELOPMENT SERVICES
- 0.90%
16,100 Genentech, Inc. (a).......................... 1,150,585 2,769,200
------------ ------------
SECURITIES AND COMMODITY CONTRACTS AND
BROKERAGE - 1.18%
3,500 Goldman Sachs Group, Inc..................... 185,500 332,063
34,500 Morgan Stanley Dean Witter & Co.............. 1,433,640 2,872,125
12,150 Schwab (Charles) Corp........................ 441,537 408,544
------------ ------------
2,060,677 3,612,732
------------ ------------
SEMICONDUCTOR, ELECTRONIC
COMPONENT MANUFACTURING - 12.99%
36,700 Altera Corp. (a)............................. 1,676,199 3,741,106
14,900 Analog Devices, Inc. (a)..................... 939,592 1,132,400
41,900 Flextronics International Ltd. (a)........... 2,105,316 2,878,006
60,400 Intel Corp................................... 3,855,500 8,074,725
24,200 JDS Uniphase Corp. (a)....................... 1,729,221 2,900,975
48,800 Maxim Integrated Products, Inc. (a) 1,205,513 3,315,350
8,500 PMC-Sierra, Inc. (a)......................... 1,305,638 1,510,344
6,100 SDL, Inc. (a)................................ 1,073,696 1,739,644
39,200 Solectron Corp. (a).......................... 1,229,831 1,641,500
55,300 Texas Instruments, Inc....................... 1,520,778 3,798,419
144,072 Tyco International Ltd....................... 4,383,657 6,825,411
27,400 Xilinx, Inc. (a)............................. 713,642 2,262,212
------------ ------------
21,738,583 39,820,092
------------ ------------
</TABLE>
81
<PAGE>
FORTIS SERIES FUND, INC.
BLUE CHIP STOCK SERIES (CONTINUED)
Schedule of Investments
June 30, 2000 (Unaudited)
COMMON STOCKS-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
---------- ------------ ------------
<C> <S> <C> <C>
SOFTWARE PUBLISHERS - 7.18%
38,400 BMC Software, Inc. (a)....................... $ 1,775,199 $ 1,401,000
27,000 Computer Associates International, Inc....... 1,661,901 1,382,063
2,100 Electronic Arts, Inc. (a).................... 206,379 153,169
12,100 Intuit, Inc. (a)............................. 438,237 500,638
400 Macromedia, Inc. (a)......................... 45,293 38,675
92,000 Microsoft Corp. (a).......................... 6,195,811 7,360,000
76,100 Oracle Corp. (a)............................. 1,617,411 6,397,156
8,100 Peregrine Systems, Inc. (a).................. 598,583 280,969
19,200 Siebel Systems, Inc. (a)..................... 2,036,106 3,140,400
1,800 Softbank Corp................................ 444,154 244,979
2,472 VeriSign, Inc. (a)........................... 350,664 436,308
10,800 Vitria Technology, Inc. (a).................. 543,107 660,150
------------ ------------
15,912,845 21,995,507
------------ ------------
SUPPORT ACTIVITIES FOR MINING - 0.60%
57,500 Baker Hughes, Inc............................ 1,533,546 1,840,000
------------ ------------
TOBACCO MANUFACTURING - 0.26%
29,900 Philip Morris Companies, Inc................. 1,279,927 794,219
------------ ------------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
---------- ------------ ------------
<C> <S> <C> <C>
TRAVEL ARRANGEMENT AND RESERVATION SERVICES -
0.20%
16,100 Priceline.com, Inc. (a)...................... $ 883,867 $ 611,548
------------ ------------
TRAVELER ACCOMMODATION - 0.34%
34,000 MGM Grand, Inc............................... 901,000 1,049,750
------------ ------------
WIRED TELECOMMUNICATIONS CARRIERS - 0.45%
4,000 GTE Corp..................................... 283,624 249,000
18,800 NEXTLINK Communications, Inc.
Class A (a)................................ 950,149 713,225
6,000 Tellabs, Inc. (a)............................ 390,929 410,625
------------ ------------
1,624,702 1,372,850
------------ ------------
WIRELESS TELECOMMUNICATIONS CARRIERS - 1.05%
400 China Telecom HK Ltd ADR..................... 71,855 71,125
75,600 Vodafone AirTouch plc ADR.................... 2,690,606 3,132,675
------------ ------------
2,762,461 3,203,800
------------ ------------
TOTAL COMMON STOCKS.......................... $214,113,133 $298,532,010
============ ============
</TABLE>
SHORT-TERM INVESTMENTS - 2.25%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
---------- ------------
<C> <S> <C>
OTHER INVESTMENT POOLS AND FUNDS - 1.77%
$1,810,249 First American Prime Obligation Fund, Current
rate -- 6.20%.............................. $ 1,810,249
3,600,439 T. Rowe Price Reserve Money Market Mutual
Fund, Current Rate -- 6.69%................ 3,600,439
------------
5,410,688
------------
SALES FINANCING - 0.15%
480,000 FCAR Owner Trust, 6.76% 9-7-2000............. 473,955
------------
SERVICES - 0.33%
1,000,000 Gannett Co., 6.64% 7-6-2000.................. 998,917
------------
TOTAL SHORT-TERM INVESTMENTS................. 6,883,560
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$220,996,693) (b).......................... $305,415,570
============
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 2000, the cost of securities for federal income tax purposes
was $221,831,825 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $90,824,697
Unrealized depreciation..................................... (7,240,952)
-------------------------------------------------------------------------
Net unrealized appreciation................................. $83,583,745
-------------------------------------------------------------------------
</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 5.71% of total net assets as of June 30, 2000.
(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". This investment has been identified by portfolio
management as an illiquid security. The portfolio entered into the
following Section 144A security transaction:
<TABLE>
<CAPTION>
Period Acquired Shares/Par Security Cost Basis
--------------- ---------- -------- ----------
<S> <C> <C> <C>
2000 34,000 MGM Grand, Inc. - 144A $901,000
</TABLE>
The aggregate value of this security at June 30, 2000, was $1,049,750,
which represents 0.34% of total net assets.
82
<PAGE>
FORTIS SERIES FUND, INC.
BLUE CHIP STOCK SERIES II
Schedule of Investments
June 30, 2000 (Unaudited)
COMMON STOCKS-91.58%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------ ---------- ----------
<C> <S> <C> <C>
ADVERTISING AND RELATED SERVICES - 0.57%
900 Interpublic Group of Companies, Inc.......... $ 35,446 $ 38,700
---------- ----------
AEROSPACE PRODUCT AND PARTS MANUFACTURING -
0.69%
800 United Technologies Corp..................... 46,805 47,100
---------- ----------
AGRICULTURE, CONSTRUCTION AND MINING
MACHINERY - 0.35%
600 Ingersoll-Rand Co............................ 26,843 24,150
---------- ----------
BASIC CHEMICAL MANUFACTURING - 0.70%
700 Air Products and Chemicals, Inc.............. 21,704 21,569
600 du Pont (E.I.) de Nemours & Co............... 32,731 26,250
---------- ----------
54,435 47,819
---------- ----------
BEVERAGE MANUFACTURING - 0.34%
400 Coca-Cola Co................................. 18,687 22,975
---------- ----------
BUILDING MATERIALS AND SUPPLIES DEALERS -
1.90%
2,600 Home Depot, Inc.............................. 147,299 129,837
---------- ----------
CABLE AND OTHER SUBSCRIPTION PROGRAMMING -
0.71%
1,200 Comcast Corp. Special Class A (a)............ 44,625 48,600
---------- ----------
CLOTHING STORES - 0.41%
900 Gap, Inc..................................... 33,499 28,125
---------- ----------
COMMUNICATIONS EQUIPMENT MANUFACTURING -
6.84%
4,400 Cisco Systems, Inc. (a)...................... 292,556 279,675
500 Comverse Technology, Inc. (a)................ 42,462 46,500
700 Lucent Technologies, Inc..................... 40,665 41,475
2,000 Nokia Oyj Corp. ADR.......................... 104,185 99,875
---------- ----------
479,868 467,525
---------- ----------
COMPUTER AND PERIPHERAL EQUIPMENT
MANUFACTURING - 8.02%
1,300 Dell Computer Corp. (a)...................... 64,290 64,106
1,700 EMC Corp. (a)................................ 109,958 130,794
500 Gateway, Inc. (a)............................ 26,252 28,375
400 International Business Machines Corp......... 45,312 43,825
1,600 Sun Microsystems, Inc. (a)................... 143,444 145,500
1,200 VERITAS Software Corp. (a)................... 128,070 135,619
---------- ----------
517,326 548,219
---------- ----------
DATA PROCESSING, HOSTING AND RELATED SERVICES
- 1.37%
1,100 First Data Corp.............................. 52,068 54,587
900 Fiserv, Inc. (a)............................. 32,887 38,925
---------- ----------
84,955 93,512
---------- ----------
DEEP SEA, COASTAL, GREAT LAKES WATER
TRANSPORTATION - 0.43%
1,500 Carnival Corp................................ 34,951 29,250
---------- ----------
DEPARTMENT STORES - 1.10%
1,300 Target Corp.................................. 88,322 75,400
---------- ----------
DEPOSITORY CREDIT-BANKING - 4.12%
1,900 Chase Manhattan Corp......................... 97,792 87,519
2,000 Citigroup, Inc............................... 124,306 120,500
500 Fifth Third Bancorp.......................... 31,894 31,625
400 State Street Corp............................ 40,212 42,425
---------- ----------
294,204 282,069
---------- ----------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------ ---------- ----------
<C> <S> <C> <C>
ELECTRIC GENERATION, TRANSMISSION AND
DISTRIBUTION - 0.42%
1,400 Edison International......................... $ 25,754 $ 28,700
---------- ----------
ELECTROMEDICAL MANUFACTURING - 1.96%
800 Guidant Corp. (a)............................ 42,398 39,600
1,900 Medtronic, Inc. (with rights)................ 98,278 94,644
---------- ----------
140,676 134,244
---------- ----------
GROCERY STORES - 0.66%
1,000 Safeway, Inc. (a)............................ 44,433 45,125
---------- ----------
INDUSTRIAL MACHINERY MANUFACTURING - 0.93%
700 Applied Materials, Inc. (a).................. 66,837 63,437
---------- ----------
INSURANCE CARRIERS - 2.06%
1,200 American International Group, Inc............ 128,548 141,000
---------- ----------
MEDICAL EQUIPMENT AND SUPPLIES MANUFACTURING
- 0.60%
400 Johnson & Johnson............................ 32,906 40,750
---------- ----------
MOTION PICTURE AND VIDEO INDUSTRIES - 2.98%
3,200 AT&T Corp.- Liberty Media Group Class A (a) 76,867 77,600
500 Clear Channel Communications, Inc. (a)....... 33,040 37,500
1,300 Viacom, Inc. Class B (a)..................... 67,466 88,644
---------- ----------
177,373 203,744
---------- ----------
NATURAL GAS DISTRIBUTION - 0.85%
900 Enron Corp................................... 60,643 58,050
---------- ----------
NEWSPAPER, PERIODICAL, BOOK AND DATABASE
PUBLISHERS - 1.22%
1,100 Time Warner, Inc............................. 95,483 83,600
---------- ----------
NONDEPOSITORY CREDIT BANKING - 2.52%
1,500 American Express Co.......................... 72,979 78,187
1,100 Fannie Mae................................... 67,211 57,406
900 Freddie Mac.................................. 43,146 36,450
---------- ----------
183,336 172,043
---------- ----------
OTHER GENERAL MERCHANDISE STORES - 2.57%
1,300 Costco Wholesale Corp. (a)................... 65,481 42,900
2,300 Wal-Mart Stores, Inc......................... 127,756 132,537
---------- ----------
193,237 175,437
---------- ----------
OTHER INFORMATION SERVICES - 1.68%
1,000 America Online, Inc. (a)..................... 58,605 52,750
500 Yahoo!, Inc. (a)............................. 63,438 61,937
---------- ----------
122,043 114,687
---------- ----------
OTHER MISCELLANEOUS MANUFACTURING - 4.65%
6,000 General Electric Co.......................... 307,685 318,000
---------- ----------
OTHER TELECOMMUNICATIONS - 6.09%
1,300 Nextel Communications, Inc. Class A (a)...... 69,290 79,544
2,900 Nortel Networks Corp......................... 155,363 197,925
1,300 SBC Communications, Inc...................... 56,376 56,225
1,800 WorldCom, Inc. (a)........................... 73,569 82,575
---------- ----------
354,598 416,269
---------- ----------
PETROLEUM AND COAL PRODUCTS MANUFACTURING -
2.40%
1,700 Exxon Mobil Corp............................. 132,389 133,450
500 Royal Dutch Petroleum Co. NY Shares.......... 27,890 30,781
---------- ----------
160,279 164,231
---------- ----------
</TABLE>
83
<PAGE>
FORTIS SERIES FUND, INC.
BLUE CHIP STOCK SERIES II (CONTINUED)
Schedule of Investments
June 30, 2000 (Unaudited)
COMMON STOCKS-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------ ---------- ----------
<C> <S> <C> <C>
PHARMACEUTICAL AND MEDICINE MANUFACTURING -
9.38%
700 Allergan, Inc................................ $ 40,169 $ 52,150
600 American Home Products Corp.................. 33,537 35,250
1,200 Amgen, Inc. (with rights) (a)................ 72,188 84,300
600 Bristol-Myers Squibb Co...................... 37,493 34,950
500 Merck & Co., Inc............................. 33,571 38,312
5,600 Pfizer, Inc. (with rights)................... 225,964 268,800
1,000 Pharmacia Corp............................... 52,657 51,687
1,500 Schering-Plough Corp......................... 59,820 75,750
---------- ----------
555,399 641,199
---------- ----------
PIPELINE TRANSPORTATION OF NATURAL
GAS - 0.45%
600 El Paso Energy Corp.......................... 24,056 30,563
---------- ----------
PULP, PAPER AND PAPERBOARD MILLS - 0.26%
400 Bowater, Inc................................. 20,662 17,650
---------- ----------
SCHEDULED AIR TRANSPORTATION - 0.22%
300 Delta Air Lines, Inc......................... 15,423 15,169
---------- ----------
SECURITIES AND COMMODITY CONTRACTS AND
BROKERAGE - 2.91%
500 Merrill Lynch & Co., Inc..................... 47,952 57,500
1,700 Morgan Stanley Dean Witter & Co.............. 125,311 141,525
---------- ----------
173,263 199,025
---------- ----------
SEMICONDUCTOR, ELECTRONIC COMPONENT
MANUFACTURING - 9.73%
1,400 Intel Corp................................... 182,050 187,163
700 JDS Uniphase Corp. (a)....................... 68,429 83,913
800 Sanmina Corp. (a)............................ 37,850 68,400
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------ ---------- ----------
<C> <S> <C> <C>
1,200 Texas Instruments, Inc....................... $ 84,515 $ 82,425
3,400 Tyco International Ltd....................... 146,645 161,075
1,000 Xilinx, Inc. (a)............................. 68,975 82,563
---------- ----------
588,464 665,539
---------- ----------
SOAP, CLEANING COMPOUND, TOILET MANUFACTURING
- 0.52%
600 Colgate-Palmolive Co......................... 32,981 35,925
---------- ----------
SOFTWARE PUBLISHERS - 5.40%
2,200 Microsoft Corp. (a).......................... 172,788 176,000
2,300 Oracle Corp. (a)............................. 176,688 193,344
---------- ----------
349,476 369,344
---------- ----------
SUPPORT ACTIVITIES FOR MINING - 1.10%
800 Halliburton Co............................... 33,649 37,750
500 Schlumberger Ltd............................. 35,343 37,313
---------- ----------
68,992 75,063
---------- ----------
URBAN TRANSIT SYSTEMS - 0.30%
700 Canadian National Railway Co................. 20,028 20,431
---------- ----------
WIRED TELECOMMUNICATIONS CARRIERS - 0.96%
870 AT&T Corp.................................... 36,591 27,514
900 BellSouth Corp............................... 42,665 38,363
---------- ----------
79,256 65,877
---------- ----------
WIRELESS TELECOMMUNICATIONS
CARRIERS - 1.21%
2,000 Vodafone AirTouch plc ADR.................... 92,868 82,875
---------- ----------
TOTAL COMMON STOCKS.......................... $6,021,964 $6,261,258
========== ==========
</TABLE>
SHORT-TERM INVESTMENTS - 8.81%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
--------- ----------
<C> <S> <C>
DEPOSITORY CREDIT - BANKING - 0.74%
$ 51,032 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 6.42%........ $ 51,032
----------
FEDERAL HOME LOAN MORTGAGE CORPORATION -
7.85%
537,000 Federal Home Loan Mortgage Corp., 6.68%,
7-3-2000................................... 536,706
----------
U.S. TREASURY BILLS - 0.22%
15,000 U.S. Treasury Bill, 5.76%, 9-21-2000......... 14,806
----------
TOTAL SHORT-TERM INVESTMENTS................. 602,544
----------
TOTAL INVESTMENTS IN SECURITIES (COST:
$6,624,508) (b)............................ $6,863,802
==========
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 2000, the cost of securities for federal income tax purposes
was $6,626,303 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 443,770
Unrealized depreciation..................................... (206,271)
-------------------------------------------------------------------------
Net unrealized appreciation................................. $ 237,499
-------------------------------------------------------------------------
</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 6.32% of total net assets as of June 30, 2000.
84
<PAGE>
FORTIS SERIES FUND, INC.
INTERNATIONAL STOCK SERIES
Schedule of Investments
June 30, 2000 (Unaudited)
COMMON STOCKS-96.23%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
AUSTRALIA-1.84%
239,470 Broken Hill Proprietary Co. Ltd. -- OIL AND
GAS EXTRACTION............................. $ 2,378,956 $ 2,839,612
------------ ------------
DENMARK-1.26%
28,800 Tele Danmark A/S -- WIRED TELECOMMUNICATIONS
CARRIERS................................... 1,868,829 1,946,546
------------ ------------
FINLAND-0.85%
52,800 UPM-Kymmene Oyj -- PULP, PAPER AND PAPERBOARD
MILLS...................................... 1,591,058 1,315,966
------------ ------------
FRANCE-13.54%
64,300 Alcatel -- COMMUNICATIONS EQUIPMENT
MANUFACTURING.............................. 1,993,621 4,234,529
46,294 Aventis S.A. -- OTHER CHEMICAL AND
PREPARATION MANUFACTURING.................. 2,786,107 3,392,654
12,600 Axa -- INSURANCE CARRIERS.................... 1,121,583 1,992,929
20,000 BNP Paribas -- INTERNATIONAL TRADE
FINANCING (FOREIGN BANKS).................. 1,160,814 1,932,538
9,710 Compagnie de Saint-Gobain -- OTHER
MISCELLANEOUS MANUFACTURING................ 1,363,952 1,318,014
6,900 Lagardere S.C.A. -- MANAGEMENT OF COMPANIES
AND ENTERPRISES............................ 510,441 529,147
11,800 Suez Lyonnaise des Eaux S.A. -- WATER, SEWAGE
AND OTHER SYSTEMS.......................... 1,735,128 2,075,657
21,907 Total Fina Elf -- PETROLEUM AND COAL PRODUCTS
MANUFACTURING.............................. 1,734,325 3,372,608
23,754 Vivendi S.A. -- COMMERCIAL AND INDUSTRIAL
MACHINERY AND EQUIPMENT.................... 1,293,834 2,105,140
------------ ------------
13,699,805 20,953,216
------------ ------------
GERMANY-8.43%
7,844 Allianz AG -- INSURANCE CARRIERS............. 2,666,980 2,799,420
48,100 Bayerische Hypo- und Vereinsbank
AG -- INTERNATIONAL TRADE
FINANCING (FOREIGN BANKS).................. 3,121,962 3,158,443
83,600 Deutsche Lufthansa AG -- SCHEDULED AIR
TRANSPORTATION............................. 1,730,416 1,959,398
12,282 Deutsche Telekom AG -- TELECOMMUNICATIONS
RESELLERS.................................. 798,682 711,121
33,100 E.On AG -- OTHER MISCELLANEOUS
MANUFACTURING.............................. 1,805,471 1,602,348
14,000 Siemens AG -- NAVIGATIONAL, MEASURING AND
CONTROL INSTRUMENTS........................ 1,130,001 2,104,319
44,400 ThyssenKrupp AG -- IRON AND STEEL MILLS AND
FERROALLY MANUFACTURING.................... 924,349 709,506
------------ ------------
12,177,861 13,044,555
------------ ------------
ITALY-2.71%
48,871 Alleanza Assicurazioni (a) -- AGENCIES,
BROKERAGE AND OTHER INSURANCE ACTIVITIES... 596,094 562,173
296,400 ENI S.p.A. -- OIL AND GAS EXTRACTION......... 1,625,625 1,718,981
107,400 San Paolo-IMI S.p.A. -- DEPOSITORY
CREDIT-BANKING............................. 1,603,267 1,913,908
------------ ------------
3,824,986 4,195,062
------------ ------------
JAPAN-23.23%
7,500 Acom Co. Ltd. -- OTHER FINANCIAL INVESTMENT
ACTIVITIES................................. 823,867 632,295
57,000 Canon, Inc. -- SEMICONDUCTOR, ELECTRONIC
COMPONENT MANUFACTURING.................... 1,681,822 2,844,478
153,000 Fuji Bank Ltd. -- DEPOSITORY
CREDIT-BANKING............................. 1,442,104 1,165,521
74,000 Fujitsu Ltd. -- SEMICONDUCTOR, ELECTRONIC
COMPONENT MANUFACTURING.................... 2,438,250 2,566,797
171,000 Industrial Bank of Japan
Ltd. (IBJ) -- DEPOSITORY CREDIT-BANKING.... 1,408,911 1,299,409
71,000 Kao Corp. -- OTHER GENERAL MERCHANDISE
STORES..................................... 1,640,693 2,174,188
120,000 Nippon Paper Industries Co., Ltd. -- PULP,
PAPER AND PAPERBOARD MILLS................. 777,245 821,133
208 Nippon Telegraph and Telephone Corp. -- WIRED
TELECOMMUNICATIONS CARRIERS................ 2,460,214 2,771,892
758,000 Nissan Motor Co. Ltd. (a) -- MOTOR VEHICLE
MANUFACTURING.............................. 3,017,149 4,477,577
64 NTT DoCoMo, Inc. -- WIRELESS
TELECOMMUNICATIONS CARRIERS................ 471,565 1,736,024
15,900 Orix Corp. -- ACITVITIES RELATED TO REAL
ESTATE..................................... 863,159 2,351,826
242,000 Sakura Bank Ltd. -- INTERNATIONAL TRADE
FINANCING (FOREIGN BANKS).................. 1,524,324 1,676,537
54,000 Sankyo Co. Ltd. -- PHARMACEUTICAL AND
MEDICINE MANUFACTURING..................... 1,215,707 1,222,343
34,100 Sony Corp. -- COMMUNICATIONS EQUIPMENT
MANUFACTURING.............................. 1,845,048 3,190,681
62,000 Sumitomo Electric Industries
Ltd. -- SEMICONDUCTOR, ELECTRONIC COMPONENT
MANUFACTURING.............................. 813,051 1,065,318
307,000 Sumitomo Trust & Banking Co.
Ltd. -- INTERNATIONAL TRADE
FINANCING (FOREIGN BANKS).................. 1,403,887 2,190,681
26,000 TDK Corp. -- SEMICONDUCTOR, ELECTRONIC
COMPONENT MANUFACTURING.................... 2,515,631 3,745,003
------------ ------------
26,342,627 35,931,703
------------ ------------
NETHERLANDS-6.84%
44,300 Akzo Nobel N.V. -- BASIC CHEMICAL
MANUFACTURING.............................. 2,004,109 1,889,736
91,700 Getronics N.V. -- COMPUTER SYSTEMS DESIGN AND
RELATED SERVICES........................... 2,167,121 1,419,643
36,650 Heineken N.V. -- BEVERAGE MANUFACTURING...... 1,263,476 2,239,709
39,400 ING Groep N.V. -- INTERNATIONAL TRADE
FINANCING (FOREIGN BANKS).................. 2,226,976 2,674,034
49,704 Koninklijke (Royal) Philips Electronics
N.V. -- OTHER ELECTRICAL EQUIPMENT AND
COMPONENT.................................. 895,432 2,353,725
------------ ------------
8,557,114 10,576,847
------------ ------------
PORTUGAL-1.69%
231,800 Portugal Telecom S.A. -- WIRED
TELECOMMUNICATIONS CARRIERS................ 2,484,308 2,613,113
------------ ------------
</TABLE>
85
<PAGE>
FORTIS SERIES FUND, INC.
INTERNATIONAL STOCK SERIES (CONTINUED)
Schedule of Investments
June 30, 2000 (Unaudited)
COMMON STOCKS-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
SINGAPORE-2.90%
293,000 Oversea-Chinese Banking Corp.
Ltd. -- DEPOSITORY CREDIT-BANKING.......... $ 2,103,649 $ 2,016,599
377,304 United Overseas Bank Ltd. -- DEPOSITORY
CREDIT-BANKING............................. 2,236,484 2,465,897
------------ ------------
4,340,133 4,482,496
------------ ------------
SPAIN-2.99%
115,600 Empresa Nacional de Electricidad
S.A. -- ELECTRIC GENERATION, TRANSMISSION
AND DISTRIBUTION........................... 2,592,820 2,248,419
110,544 Telefonica S.A. (a) -- TELECOMMUNICATIONS
RESELLERS.................................. 1,248,969 2,384,268
------------ ------------
3,841,789 4,632,687
------------ ------------
SWEDEN-2.97%
81,100 Electrolux AB Class B -- HEALTH AND PERSONAL
CARE STORES................................ 1,236,112 1,262,131
124,600 Investor AB Class B -- OTHER INVESTMENT POOLS
AND FUNDS.................................. 1,756,297 1,711,812
111,100 Svenska Handelsbanken AB
Class A -- DEPOSITORY CREDIT-BANKING....... 1,025,509 1,621,343
------------ ------------
4,017,918 4,595,286
------------ ------------
SWITZERLAND-4.23%
19,664 ABB Ltd. -- ELECTRICAL EQUIPMENT
MANUFACTURING.............................. 2,056,080 2,361,107
204 Roche Holding AG -- OTHER CHEMICAL AND
PREPARATION MANUFACTURING.................. 2,301,400 1,992,202
4,410 Zurich Allied AG -- INSURANCE CARRIERS....... 1,889,741 2,185,880
------------ ------------
6,247,221 6,539,189
------------ ------------
UNITED KINGDOM-22.75%
44,563 AstraZeneca Group plc -- PHARMACEUTICAL AND
MEDICINE MANUFACTURING..................... 1,778,394 2,081,936
298,732 BAE SYSTEMS plc -- AEROSPACE PRODUCT AND
PARTS MANUFACTURING........................ 1,561,140 1,862,140
288,700 BP Amoco plc -- OIL AND GAS EXTRACTION....... 2,219,817 2,770,977
170,350 British Energy plc -- ELECTRIC GENERATION,
TRANSMISSION AND DISTRIBUTION.............. 1,217,314 453,246
130,200 British Telecommunications plc -- WIRED
TELECOMMUNICATIONS CARRIERS................ 2,183,470 1,683,317
270,220 Cadbury Schweppes plc -- BEVERAGE
MANUFACTURING.............................. 1,516,624 1,775,432
255,614 Diageo plc -- BEVERAGE MANUFACTURING......... 2,157,239 2,288,950
86,700 GKN plc -- MOTOR VEHICLE PARTS
MANUFACTURING.............................. 1,167,177 1,104,511
253,700 Great Universal Stores plc -- ELECTRONIC
SHOPPING AND MAIL-ORDER HOUSES............. 2,531,013 1,585,275
141,100 Halifax Group plc -- OTHER FINANCIAL
INVESTMENT ACTIVITIES...................... 1,703,192 1,346,818
187,215 HSBC Holdings plc -- DEPOSITORY
CREDIT-BANKING............................. 2,068,662 2,141,273
273,000 Imperial Chemical Industries plc -- BASIC
CHEMICAL MANUFACTURING..................... 2,888,150 2,167,729
541,900 Invensys plc -- OTHER MISCELLANEOUS
MANUFACTURING.............................. 2,132,264 2,032,496
207,100 National Grid Group plc -- ELECTRIC
GENERATION, TRANSMISSION AND
DISTRIBUTION............................... 1,758,976 1,633,484
94,400 Prudential plc -- INSURANCE CARRIERS......... 1,319,975 1,383,389
229,500 Reed International plc -- NEWSPAPER,
PERIODICAL, BOOK AND DATABASE PUBLISHERS... 1,655,010 2,001,254
211,200 SmithKline Beecham plc -- PHARMACEUTICAL AND
MEDICINE MANUFACTURING..................... 2,766,466 2,775,304
692,900 Tesco plc -- OTHER GENERAL MERCHANDISE
STORES..................................... 2,212,091 2,153,033
484,100 Vodafone AirTouch plc -- WIRELESS
TELECOMMUNICATIONS CARRIERS................ 2,528,531 1,956,786
------------ ------------
37,365,505 35,197,350
------------ ------------
TOTAL COMMON STOCKS.......................... 128,738,110 148,863,628
============ ============
TOTAL LONG-TERM INVESTMENTS.................. $128,738,110 $148,863,628
============ ============
</TABLE>
SHORT-TERM INVESTMENTS-3.81%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
---------- ------------
<C> <S> <C>
DEPOSITORY CREDIT-BANKING-3.81%
$5,894,750 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 6.42%........ $ 5,894,750
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$134,632,860) (b).......................... $154,758,378
============
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 2000, the cost of securities for federal income tax purposes
was $134,648,411 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation.......................................... $27,416,119
Unrealized depreciation.......................................... (7,306,152)
------------------------------------------------------------------------------
Net unrealized appreciation...................................... $20,109,967
------------------------------------------------------------------------------
</TABLE>
(c) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets.
86
<PAGE>
FORTIS SERIES FUND, INC.
MID CAP STOCK SERIES
Schedule of Investments
June 30, 2000 (Unaudited)
COMMON STOCKS-98.69%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ----------- -----------
<C> <S> <C> <C>
BASIC INDUSTRY - 10.66%
4,300 American Power Conversion Corp. (a).......... $ 164,375 $ 175,494
3,200 Briggs & Stratton Corp....................... 180,004 109,600
4,300 Centex Corp.................................. 125,318 101,050
2,600 CNF Transportation, Inc...................... 79,293 59,150
6,400 Cytec Industries, Inc. (a)................... 204,263 158,000
3,500 Eastman Chemical Co.......................... 177,264 167,125
7,900 Engelhard Corp............................... 161,499 134,793
6,500 Georgia-Pacific Group........................ 237,057 170,625
3,400 Helix Technology Corp........................ 156,295 132,600
2,800 Kansas City Southern Industries, Inc......... 146,177 248,325
10,500 Louisiana-Pacific Corp....................... 199,160 114,187
9,600 Lyondell Chemical Co......................... 174,277 160,800
2,400 Macrovision Corp. (a)........................ 131,550 153,413
5,300 NOVA Corp. (a)............................... 166,682 148,069
3,200 Parker-Hannifin Corp......................... 144,926 109,600
6,600 Quanta Services, Inc. (a).................... 265,616 363,000
3,600 Sealed Air Corp. (a)......................... 174,590 188,550
10,900 Sherwin-Williams Co.......................... 248,546 230,943
3,000 TMP Worldwide, Inc. (a)...................... 195,218 221,438
2,400 United Parcel Service, Inc. Class B.......... 150,513 141,600
3,000 USFreightways Corp........................... 135,087 73,688
9,500 Viad Corp.................................... 267,453 258,875
----------- -----------
3,885,163 3,620,925
----------- -----------
CAPITAL SPENDING - 32.64%
7,000 Atmel Corp. (a).............................. 350,502 258,125
2,400 BEA Systems, Inc. (a)........................ 105,997 118,650
7,900 Belo (A.H.) Corp. Class A.................... 155,889 136,769
2,000 CIENA Corp. (a).............................. 154,751 333,375
4,550 Convergys Corp. (a).......................... 127,934 236,031
2,300 Credence Systems Corp. (a)................... 135,759 126,931
5,900 Cypress Semiconductor Corp. (a).............. 287,273 249,275
8,200 DeVry, Inc. (a).............................. 182,529 216,788
1,800 Digital Lightwave, Inc. (a).................. 158,496 180,900
2,100 Dow Jones & Co., Inc......................... 150,769 153,825
4,300 DST Systems, Inc. (a)........................ 273,334 327,338
7,200 Fox Entertainment Group, Inc. Class A (a) 210,613 218,700
5,800 Hertz Corp. Class A.......................... 251,735 162,762
3,900 Hispanic Broadcasting Corp. (a).............. 162,240 129,187
11,700 Intuit, Inc. (a)............................. 660,652 484,088
2,600 iXL Enterprises, Inc. (a).................... 94,002 37,700
6,100 Jabil Circuit, Inc. (a)...................... 157,233 302,713
2,400 Knight Ridder, Inc........................... 126,888 127,650
2,600 Kulicke and Soffa Industries, Inc. (a)....... 145,504 154,375
2,200 Lattice Semiconductor Corp. (a).............. 164,383 152,075
4,019 MarchFirst, Inc. (a)......................... 170,872 73,346
3,600 McClatchy Co. Class A........................ 124,117 119,250
5,900 Microchip Technology, Inc. (a)............... 320,313 343,767
5,400 Novellus Systems, Inc. (a)................... 333,097 305,438
6,000 NVIDIA Corp. (a)............................. 331,473 381,375
3,800 Portal Software, Inc. (a).................... 181,836 242,725
1,800 Power-One, Inc. (a).......................... 159,145 205,088
5,400 Powerwave Technologies, Inc. (a)............. 261,973 237,600
4,300 Proxicom, Inc. (a)........................... 169,710 205,862
2,300 Pulitzer, Inc................................ 96,267 97,031
3,400 Rational Software Corp. (a).................. 191,974 315,988
9,900 Robert Half International, Inc. (a).......... 243,755 282,150
2,200 SanDisk Corp. (a)............................ 148,946 134,613
4,200 Sanmina Corp. (a)............................ 171,812 359,100
3,600 Sawtek, Inc. (a)............................. 167,594 207,225
2,100 Scient Corp. (a)............................. 172,460 92,663
800 SDL, Inc. (a)................................ 121,709 228,150
2,600 Semtech Corp. (a)............................ 188,697 198,859
9,100 SunGard Data Systems, Inc. (a)............... 291,203 282,100
10,000 Sybase, Inc. (a)............................. 211,235 230,000
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ----------- -----------
<C> <S> <C> <C>
5,500 Symantec Corp. (a)........................... $ 309,730 $ 296,656
4,900 Synopsys, Inc. (a)........................... 262,911 169,356
1,700 Telephone & Data Systems, Inc................ 180,237 170,425
1,700 TranSwitch Corp. (a)......................... 126,789 131,219
3,700 True North Communications, Inc............... 156,258 162,800
1,900 U.S. Cellular Corp. (a)...................... 111,960 119,700
2,300 Univision Communications, Inc.
Class A (a)................................ 200,122 238,050
2,500 Varian Semiconductor Equipment Associates,
Inc. (a)................................... 135,852 157,031
2,200 Vignette Corp. (a)........................... 75,496 114,434
7,850 Vishay Intertechnology, Inc. (a)............. 314,336 297,809
2,700 Vitesse Semiconductor Corp. (a).............. 114,116 198,619
4,200 Westwood One, Inc. (a)....................... 143,170 143,325
4,100 Young & Rubicam, Inc......................... 159,368 234,469
----------- -----------
10,405,016 11,083,480
----------- -----------
CONSUMER CYCLICAL - 10.30%
3,100 Avnet, Inc................................... 222,914 183,675
9,500 BJ's Wholesale Club, Inc. (a)................ 312,308 313,500
6,300 Blyth, Inc................................... 160,695 185,850
6,100 Brinker International, Inc. (a).............. 168,441 178,425
5,200 Brunswick Corp............................... 130,443 86,125
9,100 Darden Restaurants, Inc...................... 154,227 147,875
11,800 Dollar Tree Stores, Inc. (a)................. 339,688 466,837
5,400 Herman Miller, Inc........................... 133,888 139,725
3,000 Johnson Controls, Inc........................ 189,141 153,938
7,500 Leggett & Platt, Inc......................... 168,496 123,750
3,800 Liz Claiborne, Inc........................... 167,903 133,950
8,200 MGM Grand, Inc............................... 205,727 263,425
2,900 Navistar International Corp. (a)............. 142,561 90,081
10,100 Park Place Entertainment Corp. (a)........... 126,557 123,094
14,200 Ross Stores, Inc............................. 287,711 242,287
4,300 Tech Data Corp. (a).......................... 173,599 187,319
13,200 TJX Companies, Inc........................... 326,297 247,500
6,300 Zale Corp. (a)............................... 222,304 229,950
----------- -----------
3,632,900 3,497,306
----------- -----------
CONSUMER STAPLES - 2.68%
6,600 Dial Corp.................................... 159,615 68,475
9,100 Hormel Foods Corp............................ 167,014 152,994
4,900 Lancaster Colony Corp........................ 156,417 94,019
4,900 McCormick & Company, Inc..................... 163,713 159,250
4,300 Pepsi Bottling Group, Inc.................... 120,189 125,506
5,800 Supervalu, Inc............................... 135,980 110,563
2,500 Wrigley (Wm.) Jr. Co......................... 191,921 200,469
----------- -----------
1,094,849 911,276
----------- -----------
ENERGY & RELATED - 9.37%
4,200 Amerada Hess Corp............................ 246,531 259,350
6,100 BJ Services Co. (a).......................... 295,990 381,250
10,000 ENSCO International, Inc..................... 248,944 358,125
5,600 Equitable Resources, Inc..................... 253,033 270,200
7,100 KeySpan Corp................................. 202,945 218,325
4,100 Murphy Oil Corp.............................. 241,223 243,693
4,300 Noble Affiliates, Inc........................ 164,372 160,175
8,100 Noble Drilling Corp. (a)..................... 336,315 333,619
6,300 Peoples Energy Corp.......................... 228,443 203,963
7,900 Questar Corp................................. 149,587 153,062
7,000 Rowan Companies, Inc. (a).................... 216,661 212,625
4,900 Santa Fe International Corp.................. 129,968 171,194
8,700 Ultramar Diamond Shamrock Corp............... 216,477 215,869
----------- -----------
2,930,489 3,181,450
----------- -----------
FINANCE - 10.86%
5,350 Associated Banc-Corp......................... 166,119 116,697
7,900 City National Corp........................... 285,067 280,450
</TABLE>
87
<PAGE>
FORTIS SERIES FUND, INC.
MID CAP STOCK SERIES (CONTINUED)
Schedule of Investments
June 30, 2000 (Unaudited)
COMMON STOCKS-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ----------- -----------
<C> <S> <C> <C>
7,200 Cullen/Frost Bankers, Inc.................... $ 191,206 $ 189,450
8,200 Dime Bancorp, Inc............................ 171,811 129,150
6,900 Edwards (A.G.), Inc.......................... 245,051 269,100
5,600 Gallagher (Arthur J.) & Co................... 151,056 235,200
5,800 Golden West Financial Corp................... 185,405 236,712
6,300 Mercantile Bankshares Corp................... 214,784 187,819
11,750 Metris Companies, Inc........................ 242,638 295,219
4,900 Nationwide Financial Services, Inc.
Class A.................................... 194,355 161,087
14,000 North Fork Bancorporation, Inc............... 278,613 211,750
10,700 Pacific Century Financial Corp............... 219,187 156,488
2,000 Paine Webber Group, Inc...................... 82,485 91,000
6,200 PMI Group, Inc. (The)........................ 265,630 294,500
7,000 Price (T. Rowe) Associates, Inc.............. 246,726 297,500
4,600 Radian Group, Inc............................ 238,099 238,050
7,100 Union Planters Corp.......................... 279,679 198,356
5,300 UnionBanCal Corp............................. 191,605 98,381
----------- -----------
3,849,516 3,686,909
----------- -----------
HEALTH CARE - 12.92%
4,600 Allergan, Inc................................ 237,019 342,700
3,100 Andrx Corp. (a).............................. 188,481 198,158
1,200 Bausch & Lomb, Inc........................... 74,330 92,850
7,300 Biomet, Inc.................................. 254,739 280,593
7,600 Chiron Corp. (a)............................. 243,340 361,000
3,100 Cytyc Corp. (a).............................. 149,698 165,463
1,900 Forest Laboratories, Inc. (a)................ 160,788 191,900
18,900 IVAX Corp.................................... 453,287 784,350
5,400 Lincare Holdings, Inc. (a)................... 182,876 132,975
5,200 MedImmune, Inc. (a).......................... 184,047 384,800
1,900 Millennium Pharmaceuticals, Inc.............. 209,066 212,562
1,700 Patterson Dental Co. (a)..................... 73,224 86,700
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ----------- -----------
<C> <S> <C> <C>
4,300 Quest Diagnostics, Inc. (a).................. $ 284,631 $ 307,719
3,600 Stryker Corp................................. 147,279 157,500
3,000 Trigon Healthcare, Inc. (a).................. 150,366 154,688
4,300 Universal Health Services, Inc.
Class B (a)................................ 207,454 283,800
2,000 Waters Corp. (a)............................. 124,062 249,625
----------- -----------
3,324,687 4,387,383
----------- -----------
METAL & MINING - 0.60%
2,800 Centex Construction Products, Inc............ 103,621 63,525
3,800 Phelps Dodge Corp............................ 167,959 141,313
----------- -----------
271,580 204,838
----------- -----------
TRANSPORTATION - 0.33%
1,900 UAL Corp..................................... 114,280 110,556
----------- -----------
UTILITIES - 8.33%
11,300 Allegheny Energy, Inc........................ 329,930 309,338
8,900 Constellation Energy Group................... 280,329 289,806
7,500 DTE Energy Co................................ 249,590 229,219
6,400 Dynegy, Inc. Class A......................... 408,382 437,200
10,300 Energy East Corp............................. 265,338 196,344
6,300 GPU, Inc..................................... 236,489 170,493
2,600 Illuminet Holdings, Inc. (a)................. 136,430 132,275
4,700 ITXC Corp. (a)............................... 264,935 166,409
5,600 Northern States Power Co..................... 122,914 113,050
7,400 NSTAR........................................ 303,195 301,088
12,300 OGE Energy Corp.............................. 288,002 227,550
4,300 Pinnacle West Capital Corp................... 168,354 145,662
5,400 TECO Energy, Inc............................. 133,464 108,338
----------- -----------
3,187,352 2,826,772
----------- -----------
TOTAL COMMON STOCKS.......................... $32,695,832 $33,510,895
=========== ===========
</TABLE>
SHORT-TERM INVESTMENTS - 4.81%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
---------- -----------
<C> <S> <C>
DEPOSITORY CREDIT - BANKING - 4.61%
$1,563,431 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 6.42%........ $ 1,563,431
-----------
U.S. TREASURY BILLS - 0.20%
70,000 U.S. Treasury Bill, 5.78% 9-21-2000 (e)...... 69,092
-----------
TOTAL SHORT-TERM INVESTMENTS................. 1,632,523
-----------
TOTAL INVESTMENTS IN SECURITIES
(COST: $34,328,355)........................ $35,143,418
===========
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 2000, the cost of securities for federal income tax purposes
was $34,329,699 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 4,123,602
Unrealized depreciation..................................... (3,309,883)
=========================================================================
Net unrealized appreciation................................. $ 813,719
-------------------------------------------------------------------------
</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) Security pledged as initial margin deposit for open financial futures
position detailed below:
<TABLE>
<CAPTION>
FINANCIAL FUTURES-LONG
Unrealized
Market Value Appreciation/
Number of Covered (Depreciation)
Issuer Contract(s) by Contract(s) Expiration at 6/30/00
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Standard & Poor's Midcap 400............................ 1 $244,150 September 2000 $ (3,850)
</TABLE>
88
<PAGE>
FORTIS SERIES FUND, INC.
SMALL CAP VALUE SERIES
Schedule of Investments
June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
COMMON STOCKS-95.62%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ----------- -----------
<C> <S> <C> <C>
BUILDING CONSTRUCTION-RESIDENTIAL - 4.66%
28,000 Lennar Corp.................................. $ 473,296 $ 567,000
40,000 Pulte Corp................................... 792,229 865,000
23,000 Ryland Group, Inc............................ 499,708 508,875
----------- -----------
1,765,233 1,940,875
----------- -----------
CLOTHING STORES - 3.74%
46,000 Abercrombie & Fitch Co. Class A (a).......... 484,340 560,625
30,000 AnnTaylor Stores Corp. (a)................... 690,669 993,750
----------- -----------
1,175,009 1,554,375
----------- -----------
COMPUTER SYSTEMS DESIGN AND RELATED SERVICES
- 5.61%
66,000 AVT Corp. (a)................................ 667,667 486,750
28,000 Complete Business Solutions (a).............. 489,585 491,750
44,000 Computer Horizons Corp. (a).................. 557,337 591,250
15,910 JDA Software Group, Inc. (a)................. 158,204 305,273
18,790 Mentor Graphics Corp. (a).................... 238,165 373,451
4,600 Micros Systems............................... 77,198 85,388
----------- -----------
2,188,156 2,333,862
----------- -----------
DATA PROCESSING, HOSTING AND RELATED SERVICES
- 0.53%
8,500 Kronos, Inc.................................. 255,742 221,000
----------- -----------
DEPOSITORY CREDIT-BANKING - 12.32%
17,600 Associated Banc Corp......................... 420,364 383,900
57,000 Banknorth Group, Inc......................... 965,240 872,813
15,000 CCB Financial Group.......................... 647,212 555,000
9,390 Community Bank System, Inc................... 254,256 208,341
29,000 Community First Bankshares................... 412,661 473,063
25,990 FNB Corp..................................... 631,651 536,044
75,000 Republic Security Financial Corp............. 618,795 375,000
55,000 Seacoast Financial Services Corp............. 568,770 522,500
50,000 Warren Bancorp, Inc.......................... 473,338 356,250
38,000 Webster Financial Corp....................... 926,773 843,125
----------- -----------
5,919,060 5,126,036
----------- -----------
EMPLOYMENT SERVICES - 3.51%
55,000 Interim Services, Inc. (a)................... 976,846 976,250
70,000 Kforce.com, Inc. (a)......................... 640,185 485,625
----------- -----------
1,617,031 1,461,875
----------- -----------
ENGINE, TURBINE AND POWER TRANSMISSION
EQUIPMENT - 1.73%
21,000 Briggs & Stratton Corp....................... 842,726 719,250
----------- -----------
FRUIT AND VEGETABLE PRESERVING AND SPECIALITY
FOOD - 0.21%
52,890 Vlasic Foods International (a)............... 440,747 85,946
----------- -----------
FULL-SERVICE RESTAURANTS - 1.12%
55,000 Landry's Seafood Restaurants, Inc............ 510,962 467,500
----------- -----------
GENERAL FREIGHT TRUCKING - 1.05%
30,000 Knight Transportation, Inc. (a).............. 348,420 436,875
----------- -----------
GROCERY STORES - 0.81%
32,500 Casey's General Stores, Inc.................. 314,618 337,188
----------- -----------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ----------- -----------
<C> <S> <C> <C>
HEALTH AND PERSONAL CARE STORES - 1.49%
68,350 Omnicare, Inc................................ $ 635,483 $ 619,422
----------- -----------
HOME FURNISHINGS STORES - 1.52%
65,000 Pier 1 Imports, Inc.......................... 467,370 633,750
----------- -----------
HOUSEHOLD, INSTITUTIONAL FURNITURE, KITCHEN
CABINENTS - 1.45%
43,000 La-Z-Boy, Inc................................ 670,086 602,000
----------- -----------
INSURANCE CARRIERS - 6.64%
48,000 Horace Mann Educators Corp................... 712,343 720,000
40,000 IPC Holdings Ltd............................. 717,858 560,000
90,000 Old Republic International Corp.............. 1,242,678 1,485,000
----------- -----------
2,672,879 2,765,000
----------- -----------
MANUFACTURING-FOOTWEAR - 1.83%
77,260 Wolverine World Wide, Inc.................... 844,878 762,942
----------- -----------
MANUFACTURING-MEDICAL EQUIPMENT AND SUPPLIES
- 1.34%
62,950 STERIS Corp. (a)............................. 817,035 558,681
----------- -----------
MANUFACTURING-MOTOR VEHICLE - 2.78%
70,000 Federal Signal Corp.......................... 1,200,213 1,155,000
----------- -----------
MANUFACTURING-MOTOR VEHICLE BODY AND TRAILER
- 1.27%
44,250 Wabash National Corp......................... 554,117 528,234
----------- -----------
MANUFACTURING-MOTOR VEHICLE PARTS - 1.66%
46,000 Stewart and Stevenson Services, Inc.......... 512,915 692,875
----------- -----------
MANUFACTURING-OFFICE FURNITURE - 1.94%
34,420 Hon Industries, Inc.......................... 660,058 808,870
----------- -----------
MANUFACTURING-OTHER CHEMICAL AND PREPARATION
- 1.74%
60,000 A. Schulman, Inc............................. 872,420 723,750
----------- -----------
MANUFACTURING-OTHER FABRICATED METAL PRODUCT
- 2.17%
19,000 Kaydon Corp.................................. 441,019 399,000
40,000 Watts Industries, Inc. Class A............... 443,270 505,000
----------- -----------
884,289 904,000
----------- -----------
MANUFACTURING-OTHER GENERAL PURPOSE MACHINERY
- 1.06%
25,000 Thomas Industries, Inc....................... 457,676 442,187
----------- -----------
MANUFACTURING-OTHER WOOD PRODUCT - 2.68%
30,000 Champion Enterprises, Inc. (a)............... 265,169 146,250
27,000 Rayonier, Inc................................ 1,117,629 968,625
----------- -----------
1,382,798 1,114,875
----------- -----------
MANUFACTURING-PAINT, COATING AND ADHESIVE -
1.57%
64,360 RPM, Inc..................................... 652,120 651,645
----------- -----------
NAVIGATIONAL, MEASURING AND CONTROL
INSTRUMENTS - 0.54%
27,670 Circor International, Inc.................... 274,836 226,548
----------- -----------
</TABLE>
89
<PAGE>
FORTIS SERIES FUND, INC.
SMALL CAP VALUE SERIES (CONTINUED)
Schedule of Investments
June 30, 2000 (Unaudited)
COMMON STOCKS-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ----------- -----------
<C> <S> <C> <C>
NONSCHEDULED AIR TRANSPORTATION - 1.97%
36,000 CNF Transportation, Inc...................... $ 988,061 $ 819,000
----------- -----------
NURSING CARE FACILITIES - 2.19%
130,000 Manor Care, Inc. (a)......................... 1,166,204 910,000
----------- -----------
OIL AND GAS EXTRACTION - 4.75%
20,000 Chieftain International, Inc. (a)............ 314,694 381,250
21,000 Mitchell Energy and Development Corp.
Class B.................................... 441,153 662,812
25,000 Noble Affiliates, Inc........................ 551,519 931,250
----------- -----------
1,307,366 1,975,312
----------- -----------
OTHER INVESTMENT POOLS AND FUNDS - 11.69%
20,000 EastGroup Properties, Inc.................... 386,426 421,250
23,000 Gables Residential Trust..................... 550,885 593,688
20,000 Highwoods Properties, Inc.................... 457,305 480,000
25,000 Home Properties of New York, Inc............. 652,694 750,000
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ----------- -----------
<C> <S> <C> <C>
40,000 Morgan Stanley Asia Pacific Fund............. $ 303,908 $ 407,500
19,000 Parkway Properties, Inc...................... 561,247 579,500
33,000 Prentiss Properties Trust.................... 736,951 792,000
40,000 Summit Properties, Inc....................... 722,543 840,000
----------- -----------
4,371,959 4,863,938
----------- -----------
REAL ESTATE INVESTMENT TRUST - 2.81%
45,000 Plum Creek Timber Co, Inc.................... 1,115,873 1,170,000
----------- -----------
SOFTWARE PUBLISHERS - 3.04%
50,000 Structural Dynamics Research Corp. (a)....... 550,065 753,125
30,000 Transaction Systems Architects, Inc. (a)..... 460,659 513,750
----------- -----------
1,010,724 1,266,875
----------- -----------
SUPPORT ACTIVITIES FOR MINING - 2.20%
95,000 Key Energy Services, Inc. (a)................ 527,632 914,375
----------- -----------
TOTAL COMMON STOCKS.......................... $39,424,696 $39,794,061
=========== ===========
</TABLE>
SHORT-TERM INVESTMENTS - 4.90%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
---------- -----------
<C> <S> <C>
DEPOSITORY CREDIT-BANKING - 4.90%
$2,040,319 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 6.42%........ $ 2,040,318
-----------
TOTAL INVESTMENTS IN SECURITIES (COST:
$41,465,014)(b)............................ $41,834,379
===========
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 2000, the cost of securities for federal income tax purposes
was $41,650,195 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 3,874,132
Unrealized depreciation..................................... (3,689,948)
-------------------------------------------------------------------------
Net unrealized appreciation................................. $ 184,184
-------------------------------------------------------------------------
</TABLE>
(c) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets. Market value of investments in foreign
securities represents 1.35% of total net assets as of June 30, 2000.
90
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL GROWTH SERIES
Schedule of Investments
June 30, 2000 (Unaudited)
COMMON STOCKS-91.23%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
---------- ------------ ------------
<C> <S> <C> <C>
AUSTRALIA - 1.03%
420,000 Broken Hill Proprietary Co. Ltd. -- OIL AND
GAS EXTRACTION............................. $ 4,743,958 $ 4,980,319
------------ ------------
BELGIUM - 0.39%
12,813 Dexia -- DEPOSITORY CREDIT-BANKING........... 1,571,675 1,897,653
------------ ------------
CHINA - 0.16%
35,000 China Unicom Ltd. ADR -- OTHER
TELECOMMUNICATIONS......................... 699,650 743,750
------------ ------------
FINLAND - 2.62%
246,000 Nokia Oyj -- COMMUNICATIONS EQUIPMENT
MANUFACTURING.............................. 317,127 12,604,344
------------ ------------
FRANCE - 2.68%
63,327 Aventis (Warrants) (a) -- OTHER CHEMICAL AND
PREPARATION MANUFACTURING.................. 216,167 601,607
34,000 Axa -- INSURANCE CARRIERS.................... 4,533,101 5,377,746
41,160 Carrefour S.A. -- GROCERY STORES............. 2,277,388 2,825,048
19,400 Groupe Danone -- OTHER FOOD MANUFACTURING.... 1,764,770 2,584,961
18,800 Sidel S.A.-- INDUSTRIAL MACHINERY
MANUFACTURING.............................. 1,614,596 1,530,941
------------ ------------
10,406,022 12,920,303
------------ ------------
GERMANY - 0.68%
40,000 Infineon Technologies
AG (a) -- SEMICONDUCTOR, ELECTRONIC
COMPONENT MANUFACTURING.................... 2,336,050 3,274,578
------------ ------------
HONG KONG - 0.93%
355,300 Hutchison Whampoa Ltd. -- ACITVITIES RELATED
TO REAL ESTATE............................. 4,928,218 4,466,717
------------ ------------
HUNGARY - 0.43%
60,300 Matav Rt. ADR -- WIRED TELECOMMUNICATIONS
CARRIERS................................... 1,538,580 2,076,581
------------ ------------
ISRAEL - 2.45%
18,200 BATM Advanced Communications Ltd. -- OTHER
ELECTRICAL EQUIPMENT AND COMPONENT......... 1,292,678 1,589,117
184,000 Teva Pharmaceutical Industries Ltd.
ADR -- PHARMACEUTICAL AND MEDICINE
MANUFACTURING.............................. 3,578,637 10,200,500
------------ ------------
4,871,315 11,789,617
------------ ------------
ITALY - 1.12%
390,000 Telecom Italia S.p.A. -- WIRED
TELECOMMUNICATIONS CARRIERS................ 2,613,161 5,383,497
------------ ------------
JAPAN - 18.30%
47,400 Advantest Corp. -- SEMICONDUCTOR, ELECTRONIC
COMPONENT MANUFACTURING.................... 3,229,069 10,595,057
46,800 Aiful Corp. -- OTHER FINANCIAL INVESTMENT
ACTIVITIES................................. 1,801,826 4,325,920
137,000 Canon, Inc. ADR -- SEMICONDUCTOR, ELECTRONIC
COMPONENT MANUFACTURING.................... 2,178,596 6,901,375
91,000 Fujitsu Ltd. -- SEMICONDUCTOR, ELECTRONIC
COMPONENT MANUFACTURING.................... 1,403,938 3,156,467
14,000 Fujitsu Support and Service, Inc. -- OTHER
INFORMATION SERVICES (e)................... 219,895 1,389,348
33,000 Murata Manufacturing Co. Ltd. -- OTHER
ELECTRICAL EQUIPMENT AND COMPONENT......... 2,147,543 4,747,035
208,000 NEC Corp. -- COMPUTER AND PERIPHERAL
EQUIPMENT MANUFACTURING.................... 2,808,958 6,546,383
29,000 Nintendo Co. Ltd. -- TOY MANUFACTURING....... 3,484,930 5,076,131
493 Nippon Telegraph and Telephone Corp. -- WIRED
TELECOMMUNICATIONS CARRIERS................ 4,176,327 6,569,916
32,400 Orix Corp. -- ACITVITIES RELATED TO REAL
ESTATE..................................... 2,489,208 4,792,401
95,000 Sharp Corp. -- COMPUTER AND PERIPHERAL
EQUIPMENT MANUFACTURING.................... 2,085,613 1,683,522
60,000 Sony Corp. -- COMMUNICATIONS EQUIPMENT
MANUFACTURING.............................. 1,951,042 5,614,101
226,000 Sumitomo Bank Ltd. -- DEPOSITORY
CREDIT-BANKING............................. 3,548,125 2,776,806
135,200 Sunkus & Associates, Inc. -- GROCERY
STORES..................................... 4,328,913 5,239,071
40,000 Takeda Chemical Industries Ltd. -- OTHER
CHEMICAL AND PREPARATION MANUFACTURING..... 1,625,100 2,631,256
41,000 Tokyo Electron Ltd. -- SEMICONDUCTOR,
ELECTRONIC COMPONENT MANUFACTURING......... 2,565,100 5,626,577
63,000 Trend Micro, Inc. -- OTHER INFORMATION
SERVICES................................... 3,245,470 10,420,112
------------ ------------
43,289,653 88,091,478
------------ ------------
MEXICO - 1.09%
76,200 Grupo Televisa S.A. GDR (a) -- RADIO AND
TELEVISION BROADCASTING.................... 2,427,494 5,253,038
------------ ------------
NETHERLANDS - 2.53%
64,703 IHC Caland N.V. -- SUPPORT ACTIVITIES FOR
MINING..................................... 2,132,115 3,163,239
44,000 KPNQwest N.V. (a) -- INTERNET SERVICE
PROVIDERS AND WEB SEARCH PORTALS........... 917,400 1,737,750
140,000 VNU N.V. -- NEWSPAPER, PERIODICAL, BOOK AND
DATABASE PUBLISHERS........................ 3,256,385 7,260,436
------------ ------------
6,305,900 12,161,425
------------ ------------
</TABLE>
91
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL GROWTH SERIES (CONTINUED)
Schedule of Investments
June 30, 2000 (Unaudited)
COMMON STOCKS-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
---------- ------------ ------------
<C> <S> <C> <C>
NORWAY - 1.21%
235,000 Petroleum Geo-Services ADR (a) -- SUPPORT
ACTIVITIES FOR MINING...................... $ 3,532,063 $ 4,009,688
130,000 Stolt Comex Seaway S.A. (a) -- OIL AND GAS
EXTRACTION................................. 916,705 1,836,250
------------ ------------
4,448,768 5,845,938
------------ ------------
SOUTH AFRICA - 0.29%
185,000 Sappi Ltd. -- PULP, PAPER AND PAPERBOARD
MILLS...................................... 1,543,551 1,391,593
------------ ------------
SOUTH KOREA - 0.49%
127,800 Korea Electric Power Corp. ADR -- ELECTRIC
GENERATION, TRANSMISSION AND
DISTRIBUTION............................... 1,717,844 2,356,313
------------ ------------
SPAIN - 2.48%
144,000 Repsol S.A. -- OIL AND GAS EXTRACTION........ 2,247,304 2,878,101
141,699 Telefonica S.A. ADR -- TELECOMMUNICATIONS
RESELLERS.................................. 3,045,047 9,077,592
------------ ------------
5,292,351 11,955,693
------------ ------------
SWEDEN - 2.82%
668,000 Ericsson (L.M.) Telephone Co. Class B
ADR -- COMMUNICATIONS EQUIPMENT
MANUFACTURING.............................. 1,648,547 13,360,000
22,000 Telia AB -- TELECOMMUNICATIONS RESELLERS..... 217,619 208,186
------------ ------------
1,866,166 13,568,186
------------ ------------
SWITZERLAND - 1.74%
2,700 Nestle S.A. -- OTHER FOOD MANUFACTURING...... 5,371,703 5,421,253
300 Roche Holding AG -- OTHER CHEMICAL AND
PREPARATION MANUFACTURING.................. 1,522,238 2,929,709
------------ ------------
6,893,941 8,350,962
------------ ------------
UNITED KINGDOM - 5.17%
211,700 Capita Group plc -- ADMINSTRATION OF HUMAN
RESOURCE PROGRAMS.......................... 460,085 5,211,207
36,300 Energis plc (a) -- WIRED TELECOMMUNICATIONS
CARRIERS................................... 174,091 1,354,080
365,454 Telewest Communications plc (a) -- CABLE AND
OTHER PROGRAM DISTRIBUTION (e)............. 1,116,261 1,260,050
4,222,513 Vodafone AirTouch plc -- WIRELESS
TELECOMMUNICATIONS CARRIERS................ 3,602,805 17,067,865
------------ ------------
5,353,242 24,893,202
------------ ------------
UNITED STATES - 42.62%
3,000 Akamai Technologies, Inc. (a) -- SOFTWARE
PUBLISHERS................................. 78,000 356,204
81,000 Altera Corp. (a) -- SEMICONDUCTOR, ELECTRONIC
COMPONENT MANUFACTURING.................... 850,361 8,256,938
48,000 Applied Materials, Inc. (a) -- INDUSTRIAL
MACHINERY MANUFACTURING.................... 1,344,751 4,350,000
30,700 AT&T Wireless Group (a) -- OTHER
TELECOMMUNICATIONS......................... 905,650 855,763
95,500 Aurora Biosciences Corp. (a) -- SCIENTIFIC
RESEARCH AND DEVELOPMENT SERVICES.......... 6,001,375 6,511,906
3,500 Avanex Corp. (a) -- OTHER ELECTRICAL
EQUIPMENT AND COMPONENT.................... 126,000 334,250
101,250 Baker Hughes, Inc. -- SUPPORT ACTIVITIES FOR
MINING..................................... 1,338,427 3,240,000
187,000 Bed Bath & Beyond, Inc. (a) -- HOME
FURNISHINGS STORES......................... 2,006,207 6,778,750
6,800 Broadcom Corp.
Class A (a) -- SEMICONDUCTOR, ELECTRONIC
COMPONENT MANUFACTURING.................... 1,003,000 1,488,775
46,455 Cardinal Health, Inc. -- DRUGS AND DRUGGISTS
SUNDRIES WHOLESALERS....................... 1,599,105 3,437,670
355,425 Cheesecake Factory, Inc. (a) -- FULL-SERVICE
RESTAURANTS................................ 4,583,308 9,774,188
103,000 Chiron Corp. (a) -- SCIENTIFIC RESEARCH AND
DEVELOPMENT SERVICES....................... 3,346,735 4,892,500
70,000 Chubb Corp.(with rights) -- INSURANCE
CARRIERS................................... 4,439,868 4,305,000
228,000 Cisco Systems, Inc. (a) -- COMMUNICATIONS
EQUIPMENT MANUFACTURING.................... 305,583 14,492,250
46,000 Comcast Corp. Special Class A (a) -- CABLE
AND OTHER SUBSCRIPTION PROGRAMMING......... 1,428,452 1,863,000
108,000 Cypress Semiconductor
Corp. (a) -- SEMICONDUCTOR, ELECTRONIC
COMPONENT MANUFACTURING.................... 4,793,566 4,563,000
13,700 DigitalThink, Inc. (a) -- OTHER INFORMATION
SERVICES................................... 191,800 491,488
90,000 Enron Corp. -- NATURAL GAS DISTRIBUTION...... 2,970,850 5,805,000
273,100 EOG Resources, Inc. -- OIL AND GAS
EXTRACTION................................. 5,887,581 9,148,850
69,000 Guidant Corp. (a) -- ELECTROMEDICAL
MANUFACTURING.............................. 2,698,671 3,415,500
140,200 Intuit, Inc. (a) -- SOFTWARE PUBLISHERS...... 4,348,335 5,800,775
214,700 LTX Corp. (a) -- NAVIGATIONAL, MEASURING AND
CONTROL INSTRUMENTS........................ 3,911,452 7,501,081
69,300 Medtronic, Inc. (with
rights) -- ELECTROMEDICAL MANUFACTURING.... 2,144,094 3,452,006
68,000 MGC Communications, Inc. (a) -- WIRED
TELECOMMUNICATIONS CARRIERS................ 2,745,289 4,075,750
81,000 Motorola, Inc. -- COMMUNICATIONS EQUIPMENT
MANUFACTURING.............................. 1,864,991 2,354,063
13,000 Next Level Communications, Inc. (a) -- WIRED
TELECOMMUNICATIONS CARRIERS................ 260,000 1,114,750
153,499 Outback Steakhouse, Inc. (a) -- FULL-SERVICE
RESTAURANTS................................ 3,615,369 4,489,845
57,500 PE Corp. -- CELERA GENOMICS (a) -- SCIENTIFIC
RESEARCH AND DEVELOPMENT SERVICES.......... 365,980 5,376,250
232,000 PE Corp. -- PE BIOSYSTEM
GROUP -- NAVIGATIONAL, MEASURING AND
CONTROL INSTRUMENTS........................ 3,571,852 15,283,000
112,000 RadioShack Corp. (with rights) -- ELECTRONICS
AND APPLIANCE STORES....................... 4,333,830 5,306,000
57,438 Schlumberger Ltd. -- SUPPORT ACTIVITIES FOR
MINING..................................... 3,110,686 4,286,310
5,500 Selectica, Inc. (a) -- OTHER INFORMATION
SERVICES................................... 165,000 385,343
</TABLE>
92
<PAGE>
COMMON STOCKS-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
---------- ------------ ------------
<C> <S> <C> <C>
6,800 Sequenom, Inc. (a) -- SCIENTIFIC RESEARCH AND
DEVELOPMENT SERVICES....................... $ 176,800 $ 308,550
120,000 Starbucks Corp. (a) -- LIMITED-SERVICE EATING
PLACES..................................... 3,435,209 4,582,500
61,000 Synopsys, Inc. (a) -- COMPUTER SYSTEMS DESIGN
AND RELATED SERVICES....................... 1,818,643 2,108,313
180,000 Tellabs, Inc. (a) -- WIRED TELECOMMUNICATIONS
CARRIERS................................... 1,210,073 12,318,750
87,000 Tidewater, Inc. -- SUPPORT ACTIVITIES FOR
MINING..................................... 2,440,452 3,132,000
105,000 Transocean Sedco Forex, Inc. -- SUPPORT
ACTIVITIES FOR MINING...................... 5,459,779 5,610,937
42,000 Univision Communications, Inc.
Class A (a) -- RADIO AND TELEVISION
BROADCASTING............................... 1,512,000 4,347,000
34,000 Varian, Inc. (a) -- NAVIGATIONAL, MEASURING
AND CONTROL INSTRUMENTS.................... 914,814 1,568,250
211,200 Xilinx, Inc. (a) -- SEMICONDUCTOR, ELECTRONIC
COMPONENT MANUFACTURING.................... 1,093,183 17,437,200
------------ ------------
94,397,121 205,199,705
------------ ------------
TOTAL COMMON STOCKS.......................... $207,561,787 $439,204,892
============ ============
</TABLE>
PREFERRED STOCKS-1.43%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ------------ ------------
<C> <S> <C> <C>
BRAZIL - 0.48%
24,000 Telecomunicacoes Brasileiras S.A. ADR
Preferred -- OTHER TELECOMMUNICATIONS..... $ 1,051,959 $ 2,331,000
------------ ------------
GERMANY - 0.95%
24,375 SAP AG Preferred -- SOFTWARE PUBLISHERS..... 460,676 4,575,038
------------ ------------
TOTAL PREFERRED STOCKS....................... 1,512,635 6,906,038
------------ ------------
TOTAL LONG-TERM INVESTMENTS.................. $209,074,422 $446,110,930
============ ============
</TABLE>
SHORT-TERM INVESTMENTS-6.26%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
----------- ------------
<C> <S> <C>
CONSUMER LENDING - 2.64%
$12,730,000 Associates Corp. Master Variable Rate Note,
Current rate -- 6.53%...................... $ 12,730,000
------------
DEPOSITORY CREDIT - BANKING - 1.75%
8,425,506 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 6.42%........ 8,425,506
------------
U.S. GOVERNMENT AGENCIES - 1.87%
9,000,000 Federal Home Loan Mortgage Corp., 6.53%,
7-11-2000.................................. 8,982,373
------------
TOTAL SHORT-TERM INVESTMENTS................. 30,137,879
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$239,212,301)(b)........................... $476,248,809
============
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 2000, the cost of securities for federal income tax purposes
was $239,252,991 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $239,291,097
Unrealized depreciation..................................... (2,295,279)
--------------------------------------------------------------------------
Net unrealized appreciation................................. $236,995,818
--------------------------------------------------------------------------
</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>
1998 14,000 Fujitsu Support and Service, Inc. - 144A $ 219,895
1999 365,454 Telewest Communications plc - 144A 1,116,261
</TABLE>
The aggregate value of these securities at June 30, 2000, was $2,649,398,
which represents .55% of total net assets.
93
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL EQUITY SERIES
Schedule of Investments
June 30, 2000 (Unaudited)
COMMON STOCKS-94.76%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ---------- ----------
<C> <S> <C> <C>
AUSTRALIA-1.83%
5,350 Publishing & Broadcasting Ltd. -- RADIO AND
TELEVISION BROADCASTING.................... $ 40,838 $ 41,276
22,950 QBE Insurance Group Ltd. -- INSURANCE
CARRIERS................................... 95,793 112,603
---------- ----------
136,631 153,879
---------- ----------
CANADA-3.13%
2,500 Anderson Exploration Ltd. -- OIL AND GAS
EXTRACTION................................. 35,970 45,387
1,670 AT&T Canada, Inc. (a) -- WIRED
TELECOMMUNICATIONS CARRIERS................ 70,776 55,599
1,370 BCE, Inc. -- TELECOMMUNICATIONS RESELLERS.... 37,238 32,454
3,147 Canadian National Railway Co. -- URBAN
TRANSIT SYSTEMS............................ 89,423 91,853
541 Nortel Networks Corp. -- OTHER
TELECOMMUNICATIONS......................... 28,049 37,506
---------- ----------
261,456 262,799
---------- ----------
CHINA-0.02%
80 China Unicom Ltd. ADR -- OTHER
TELECOMMUNICATIONS......................... 1,599 1,700
---------- ----------
FINLAND-1.72%
1,450 Helsingin Puhelin Oyj -- WIRED
TELECOMMUNICATIONS CARRIERS................ 106,259 142,611
200 Tecnomen Oyj -- COMMUNICATIONS EQUIPMENT
MANUFACTURING.............................. 1,593 1,725
---------- ----------
107,852 144,336
---------- ----------
FRANCE-7.06%
660 Aventis S.A. -- OTHER CHEMICAL AND
PREPARATION MANUFACTURING.................. 37,762 48,368
800 BNP Paribas -- INTERNATIONAL TRADE
FINANCING (FOREIGN BANKS).................. 67,765 77,301
140 Bouygues S.A. -- MANAGEMENT OF COMPANIES AND
ENTERPRISES................................ 91,526 93,943
67 Castorama Dubois Investissement
S.A. -- BUILDING MATERIALS AND SUPPLIES
DEALERS.................................... 15,386 16,635
550 Compagnie Francaise d'Etudes et de
Construction S.A. -- OTHER HEAVY
CONSTRUCTION............................... 63,356 66,800
2,250 Sanofi-Synthelabo S.A. (a) -- PHARMACEUTICAL
AND MEDICINE MANUFACTURING................. 88,807 107,627
360 Societe Televsion Francaise 1 -- RADIO AND
TELEVISION BROADCASTING.................... 21,524 25,192
580 Total Fina Elf -- PETROLEUM AND COAL PRODUCTS
MANUFACTURING.............................. 85,911 89,292
770 Vivendi S.A. -- COMMERCIAL AND INDUSTRIAL
MACHINERY AND EQUIPMENT.................... 81,238 68,239
---------- ----------
553,275 593,397
---------- ----------
GREECE-0.22%
1,197 Antenna TV S.A. ADR -- RADIO AND TELEVISION
BROADCASTING............................... 25,689 18,553
---------- ----------
ISRAEL-0.18%
1,610 Partner Communications Co. Ltd.
ADR (a) -- WIRELESS TELECOMMUNICATIONS
CARRIERS................................... 14,490 15,295
---------- ----------
ITALY-0.85%
14,160 Telecom Italia Mobile S.p.A. -- WIRELESS
TELECOMMUNICATIONS CARRIERS................ 62,248 71,534
---------- ----------
JAPAN-13.45%
3,000 Canon, Inc. -- SEMICONDUCTOR, ELECTRONIC
COMPONENT MANUFACTURING.................... 116,014 149,709
8,000 Chugai Pharmaceutical Co.
Ltd. -- PHARMACEUTICAL AND MEDICINE
MANUFACTURING.............................. 150,119 151,600
200 Fast Retailing Co. Ltd. -- CLOTHING STORES... 77,247 83,928
6,000 Fuji Heavy Industries Ltd. -- MOTOR VEHICLE
MANUFACTURING.............................. 47,248 43,665
2,000 Fujitsu Ltd. -- SEMICONDUCTOR, ELECTRONIC
COMPONENT MANUFACTURING.................... 56,812 69,373
11,000 Hitachi Ltd. -- COMMUNICATIONS EQUIPMENT
MANUFACTURING.............................. 134,870 159,066
2,000 Mikuni Coca-Cola Bottling Co.
Ltd. -- BEVERAGE MANUFACTURING............. 28,180 29,091
4,000 Mitsubishi Electric Corp. -- OTHER ELECTRICAL
EQUIPMENT AND COMPONENT.................... 39,728 43,401
8,000 Mitsubishi Motors Corp. -- MOTOR VEHICLE
MANUFACTURING.............................. 30,394 34,252
5 Nippon Telegraph and Telephone Corp. -- WIRED
TELECOMMUNICATIONS CARRIERS................ 66,717 66,632
6 NTT DoCoMo, Inc. -- WIRELESS
TELECOMMUNICATIONS CARRIERS................ 217,095 162,752
300 Sony Corp. -- COMMUNICATIONS EQUIPMENT
MANUFACTURING.............................. 36,118 28,071
2,000 Tokyo Broadcasting System -- RADIO AND
TELEVISION BROADCASTING.................... 77,860 86,574
2,000 Toshiba Corp. -- SEMICONDUCTOR, ELECTRONIC
COMPONENT MANUFACTURING.................... 19,495 22,627
---------- ----------
1,097,897 1,130,741
---------- ----------
MEXICO-0.54%
660 Grupo Televisa S.A. GDR (a) -- RADIO AND
TELEVISION BROADCASTING.................... 40,517 45,499
---------- ----------
NETHERLANDS-6.27%
3,330 Akzo Nobel N.V. -- BASIC CHEMICAL
MANUFACTURING.............................. 143,642 142,050
1,279 ING Groep N.V. -- INTERNATIONAL TRADE
FINANCING (FOREIGN BANKS).................. 70,211 86,804
2,150 Koninklijke (Royal) Philips Electronics
N.V. -- OTHER ELECTRICAL EQUIPMENT AND
COMPONENT.................................. 94,363 101,813
</TABLE>
94
<PAGE>
COMMON STOCKS-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ---------- ----------
<C> <S> <C> <C>
1,974 KPN N.V. -- WIRED TELECOMMUNICATIONS
CARRIERS................................... $ 103,174 $ 88,653
1,600 Libertel N.V. (a) -- WIRELESS
TELECOMMUNICATIONS CARRIERS................ 30,160 24,463
1,340 Royal Dutch Petroleum Co. -- PETROLEUM AND
COAL PRODUCTS MANUFACTURING................ 80,247 83,623
---------- ----------
521,797 527,406
---------- ----------
NORWAY-0.50%
1,590 Schibsted ASA -- NEWSPAPER, PERIODICAL, BOOK
AND DATABASE PUBLISHERS.................... 34,056 29,576
570 Sparebanken NOR -- NONDEPOSITORY CREDIT
BANKING.................................... 10,729 12,837
---------- ----------
44,785 42,413
---------- ----------
PORTUGAL-0.44%
2,400 Telecel-Comunicacoes Pessoais
S.A. -- WIRELESS TELECOMMUNICATIONS
CARRIERS................................... 42,151 36,580
---------- ----------
SINGAPORE-1.82%
7,000 Oversea-Chinese Banking Corp.
Ltd. -- DEPOSITORY CREDIT-BANKING.......... 47,818 48,178
19,000 Overseas Union Bank Ltd. -- NONDEPOSITORY
CREDIT BANKING............................. 81,425 73,626
2,000 Singapore Press Holdings Ltd. -- NEWSPAPER,
PERIODICAL, BOOK AND DATABASE PUBLISHERS... 36,730 31,232
---------- ----------
165,973 153,036
---------- ----------
SPAIN-0.57%
2,390 Repsol S.A. -- OIL AND GAS EXTRACTION........ 50,325 47,768
---------- ----------
SWEDEN-3.13%
1,750 AstraZeneca Group plc -- PHARMACEUTICAL AND
MEDICINE MANUFACTURING..................... 74,774 81,804
630 NetCom AB -- CABLE AND OTHER PROGRAM
DISTRIBUTION............................... 44,547 46,760
16,000 Saab AB -- AEROSPACE PRODUCT AND PARTS
MANUFACTURING.............................. 151,664 134,990
---------- ----------
270,985 263,554
---------- ----------
SWITZERLAND-1.38%
73 Novartis AG -- PHARMACEUTICAL AND MEDICINE
MANUFACTURING.............................. 103,373 116,003
---------- ----------
UNITED KINGDOM-11.81%
9,640 BAE SYSTEMS plc -- AEROSPACE PRODUCT AND
PARTS MANUFACTURING........................ 55,821 60,091
11,000 BP Amoco plc -- OIL AND GAS EXTRACTION....... 89,475 105,579
5,060 Cable & Wireless plc -- WIRED
TELECOMMUNICATIONS CARRIERS................ 89,258 85,719
1,270 Capital Radio plc -- RADIO AND TELEVISION
BROADCASTING............................... 25,807 29,657
6,860 Carlton Communications plc -- MOTION PICTURE
AND VIDEO INDUSTRIES....................... 80,103 88,275
5,430 CGU plc -- INSURANCE CARRIERS................ 79,115 90,507
7,060 Diageo plc -- BEVERAGE MANUFACTURING......... 61,465 63,220
100 NDS Group plc ADR (a) -- INTERNET PUBLISHING
AND BROADCASTING........................... 4,263 6,100
6,060 Next plc -- ELECTRONIC SHOPPING AND
MAIL-ORDER HOUSES.......................... 52,855 53,256
4,960 Reckitt Benckiser plc -- SOAP, CLEANING
COMPOUND, TOILET MANUFACTURING............. 51,579 55,116
4,320 Royal Bank of Scotland Group -- DEPOSITORY
CREDIT-BANKING............................. 65,325 72,333
7,700 United News & Media plc -- NEWSPAPER,
PERIODICAL, BOOK AND DATABASE PUBLISHERS... 98,282 110,742
42,740 Vodafone AirTouch plc -- WIRELESS
TELECOMMUNICATIONS CARRIERS................ 209,384 172,760
---------- ----------
962,732 993,355
---------- ----------
UNITED STATES-39.84%
1,100 Adelphia Business Solutions, Inc. (a) (with
rights) -- OTHER TELECOMMUNICATIONS........ 41,747 25,506
190 Agilent Technologies,
Inc. (a) -- NAVIGATIONAL, MEASURING AND
CONTROL INSTRUMENTS........................ 15,082 14,013
860 Apache Corp. -- OIL AND GAS EXTRACTION....... 41,165 50,579
1,200 AT&T Wireless Group (a) -- OTHER
TELECOMMUNICATIONS......................... 35,288 33,450
2,020 Bausch & Lomb, Inc. -- COMMERCIAL AND SERVICE
INDUSTRY MACHINERY MANUFACTURING........... 109,296 156,297
680 Bell Atlantic Corp. -- WIRED
TELECOMMUNICATIONS CARRIERS................ 41,003 34,553
2,390 BJ's Wholesale Club, Inc. (a) -- OTHER
GENERAL MERCHANDISE STORES................. 81,411 78,870
1,390 BMC Software, Inc. (a) -- SOFTWARE
PUBLISHERS................................. 59,174 50,713
1,820 Boeing Co. -- AEROSPACE PRODUCT AND PARTS
MANUFACTURING.............................. 69,363 76,099
600 Bristol-Myers Squibb Co. -- PHARMACEUTICAL
AND MEDICINE MANUFACTURING................. 38,857 34,950
1,000 BroadWing, Inc. (a) -- WIRED
TELECOMMUNICATIONS CARRIERS................ 28,014 25,938
790 CIGNA Corp. -- INSURANCE CARRIERS............ 64,955 73,865
1,700 Coastal Corp. -- PETROLEUM AND COAL PRODUCTS
MANUFACTURING.............................. 80,944 103,487
3,750 Computer Associates International,
Inc. -- SOFTWARE PUBLISHERS................ 193,950 191,953
1,020 Computer Sciences Corp. (a) -- COMPUTER
SYSTEMS DESIGN AND RELATED SERVICES........ 80,554 76,181
2,320 Compuware Corp. (a) -- SOFTWARE PUBLISHERS... 27,240 24,070
4,000 Conoco, Inc. Class A -- PETROLEUM AND COAL
PRODUCTS MANUFACTURING..................... 92,667 88,000
140 Corning, Inc. -- OTHER ELECTRICAL EQUIPMENT
AND COMPONENT.............................. 24,783 37,783
</TABLE>
95
<PAGE>
FORTIS SERIES FUND, INC.
GLOBAL EQUITY SERIES (CONTINUED)
Schedule of Investments
June 30, 2000 (Unaudited)
COMMON STOCKS-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ---------- ----------
<C> <S> <C> <C>
2,250 CVS Corp. -- HEALTH AND PERSONAL CARE
STORES..................................... $ 96,842 $ 90,000
2,650 Deere & Co. -- AGRICULTURE, CONSTRUCTION AND
MINING MACHINERY........................... 104,454 98,050
2,370 Disney (Walt) Co. -- MOTION PICTURE AND VIDEO
INDUSTRIES................................. 93,590 91,986
200 Electronic Data Systems Corp. -- COMPUTER
SYSTEMS DESIGN AND RELATED SERVICES........ 13,627 8,250
3,880 EOG Resources, Inc. -- OIL AND GAS
EXTRACTION................................. 93,436 129,980
1,370 FLAG Telecom Holdings
Ltd. (a) -- SEMICONDUCTOR, ELECTRONIC
COMPONENT MANUFACTURING.................... 19,554 20,379
840 GTE Corp. -- WIRED TELECOMMUNICATIONS
CARRIERS................................... 59,915 52,290
1,130 Halliburton Co. -- SUPPORT ACTIVITIES FOR
MINING..................................... 54,393 53,322
1,990 Hartford Financial Services Group,
Inc. -- INSURANCE CARRIERS................. 95,212 111,316
1,200 Hearst-Argyle Television, Inc. (a) -- RADIO
AND TELEVISION BROADCASTING................ 25,049 23,400
530 Hewlett-Packard Co. -- COMPUTER AND
PERIPHERAL EQUIPMENT MANUFACTURING......... 57,649 66,184
1,410 Ingersoll-Rand Co. -- AGRICULTURE,
CONSTRUCTION AND MINING MACHINERY.......... 61,931 56,752
720 International Business Machines
Corp. -- COMPUTER AND PERIPHERAL EQUIPMENT
MANUFACTURING.............................. 80,732 78,885
2,250 Keebler Foods Co. (a) -- BAKERIES AND
TORTILLA MANUFACTURING..................... 67,743 83,531
500 Lucent Technologies, Inc. -- COMMUNICATIONS
EQUIPMENT MANUFACTURING.................... 29,269 29,625
600 Marsh & McLennan Companies, Inc. -- AGENCIES,
BROKERAGE AND OTHER INSURANCE ACTIVITIES... 56,868 62,663
650 MetLife, Inc. (a) -- INSURANCE CARRIERS...... 10,701 13,691
2,550 Motorola, Inc. -- COMMUNICATIONS EQUIPMENT
MANUFACTURING.............................. 98,184 74,109
1,980 NRG Energy, Inc. -- ELECTRIC GENERATION,
TRANSMISSION AND DISTRIBUTION.............. 29,700 36,135
1,720 NTL, Inc. (a) -- OTHER TELECOMMUNICATIONS.... 125,037 102,985
1,732 Pfizer, Inc. (with rights) -- PHARMACEUTICAL
AND MEDICINE MANUFACTURING................. 67,580 83,136
1,570 Pharmacia Corp. -- PHARMACEUTICAL AND
MEDICINE MANUFACTURING..................... 83,093 81,149
2,960 Polaroid Corp. -- OTHER CHEMICAL AND
PREPARATION MANUFACTURING.................. 62,404 53,465
2,800 Reliastar Financial Corp. -- INSURANCE
CARRIERS................................... 83,582 146,825
1,630 Safeway, Inc. (a) -- GROCERY STORES.......... 72,821 73,554
1,300 Santa Fe International Corp. -- SUPPORT
ACTIVITIES FOR MINING...................... 44,850 45,419
830 Sprint Corp. -- OTHER TELECOMMUNICATIONS..... 48,607 42,330
1,900 Sprint Corp. (PCS Group) (a) -- OTHER
TELECOMMUNICATIONS......................... 101,708 113,050
1,310 Tellabs, Inc. (a) -- WIRED TELECOMMUNICATIONS
CARRIERS................................... 64,798 89,653
500 Time Warner Telecom, Inc.
Class A (a) -- OTHER TELECOMMUNICATIONS.... 25,000 32,188
1,270 Time Warner, Inc. -- NEWSPAPER, PERIODICAL,
BOOK AND DATABASE PUBLISHERS............... 110,212 96,520
540 TRW, Inc. -- MOTOR VEHICLE PARTS
MANUFACTURING.............................. 28,619 23,423
150 United Parcel Service, Inc.
Class B -- COURIERS........................ 9,033 8,850
---------- ----------
3,201,686 3,349,402
---------- ----------
TOTAL COMMON STOCKS.......................... $7,665,461 $7,967,250
========== ==========
</TABLE>
PREFERRED STOCKS-1.71%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ---------- ----------
<C> <S> <C> <C>
GERMANY-1.71%
1,200 ProSieben Media AG -- RADIO AND TELEVISION
BROADCASTING............................... $ 128,562 $ 143,790
---------- ----------
TOTAL LONG-TERM INVESTMENTS.................. $7,794,023 $8,111,040
========== ==========
</TABLE>
SHORT-TERM INVESTMENTS-4.21%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
--------- ----------
<C> <S> <C>
DEPOSITORY CREDIT-BANKING-4.21%
$354,289 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 6.42%........ $ 354,289
----------
TOTAL INVESTMENTS IN SECURITIES
(COST: $8,148,312) (b)..................... $8,465,329
==========
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 2000, the cost of securities for federal income tax purposes
was $8,151,249 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation.......................................... $ 701,530
Unrealized depreciation.......................................... (387,450)
----------------------------------------------------------------------------
Net unrealized appreciation...................................... $ 314,080
----------------------------------------------------------------------------
</TABLE>
(c) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets.
96
<PAGE>
FORTIS SERIES FUND, INC.
LARGE CAP GROWTH SERIES
Schedule of Investments
June 30, 2000 (Unaudited)
COMMON STOCKS- 97.28%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ----------- ------------
<C> <S> <C> <C>
AEROSPACE PRODUCT AND PARTS MANUFACTURING -
2.22%
19,500 Honeywell International, Inc................. $ 1,187,070 $ 656,906
29,800 United Technologies Corp..................... 1,664,280 1,754,475
----------- ------------
2,851,350 2,411,381
----------- ------------
BUILDING MATERIALS AND SUPPLIES DEALERS -
4.22%
66,400 Home Depot, Inc.............................. 3,202,303 3,315,850
31,000 Lowe's Companies, Inc........................ 1,594,880 1,272,938
----------- ------------
4,797,183 4,588,788
----------- ------------
COMMUNICATIONS EQUIPMENT MANUFACTURING -
9.41%
76,200 Cisco Systems, Inc. (a)...................... 2,901,997 4,843,463
5,300 Lucent Technologies, Inc..................... 343,043 314,025
4,500 Motorola, Inc................................ 222,389 130,781
99,100 Nokia Oyj Corp. ADR.......................... 2,522,085 4,948,806
----------- ------------
5,989,514 10,237,075
----------- ------------
COMPUTER AND PERIPHERAL EQUIPMENT
MANUFACTURING - 6.91%
80,200 Dell Computer Corp. (a)...................... 3,280,716 3,954,863
34,400 EMC Corp. (a)................................ 1,259,822 2,646,650
5,100 International Business Machines Corp. 509,070 558,768
4,000 Sun Microsystems, Inc. (a)................... 227,500 363,750
----------- ------------
5,277,108 7,524,031
----------- ------------
CONSUMER LENDING - 0.27%
7,000 Household International, Inc................. 290,165 290,938
----------- ------------
DEPARTMENT STORES - 0.78%
15,300 Kohl's Corp. (a)............................. 553,253 851,063
----------- ------------
DEPOSITORY CREDIT-BANKING - 5.14%
136 Bank of America Corp......................... 8,226 5,848
24,000 Chase Manhattan Corp......................... 1,158,706 1,105,500
68,100 Citigroup, Inc............................... 3,451,854 4,103,025
9,900 Wells Fargo Co............................... 446,094 383,625
----------- ------------
5,064,880 5,597,998
----------- ------------
ELECTROMEDICAL MANUFACTURING - 0.87%
18,900 Medtronic, Inc. (with rights)................ 818,599 941,456
----------- ------------
ELECTRONIC SHOPPING AND MAIL-ORDER HOUSES -
0.33%
6,600 eBay, Inc. (a)............................... 482,464 358,463
----------- ------------
HEALTH AND PERSONAL CARE STORES - 0.54%
18,300 Walgreen Co.................................. 440,315 589,031
----------- ------------
INDUSTRIAL MACHINERY MANUFACTURING - 4.36%
52,400 Applied Materials, Inc. (a).................. 4,391,597 4,748,750
----------- ------------
INSURANCE CARRIERS - 1.40%
13,000 American International Group, Inc............ 1,175,127 1,527,500
----------- ------------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ----------- ------------
<C> <S> <C> <C>
MOTION PICTURE AND VIDEO INDUSTRIES - 4.59%
111,700 AT&T Corp. - Liberty Media Group (a)......... $ 2,018,294 $ 2,708,725
4,500 Clear Channel Communications, Inc. (a)....... 328,728 337,500
11,600 Disney (Walt) Co............................. 486,411 450,225
21,900 Viacom, Inc. Class B (a)..................... 1,288,701 1,493,306
----------- ------------
4,122,134 4,989,756
----------- ------------
NEWSPAPER, PERIODICAL, BOOK AND DATABASE
PUBLISHERS - 1.80%
25,800 Time Warner, Inc............................. 1,849,828 1,960,800
----------- ------------
NONDEPOSITORY CREDIT BANKING - 7.38%
133,212 Associates First Capital Corp. Class A....... 4,512,638 2,972,293
78,000 C.I.T. Group, Inc............................ 1,647,509 1,267,500
6,700 Fannie Mae................................... 421,998 349,656
30,000 Freddie Mac.................................. 1,637,351 1,215,000
82,300 MBNA Corp.................................... 2,007,361 2,232,388
----------- ------------
10,226,857 8,036,837
----------- ------------
OTHER ELECTRICAL EQUIPMENT AND COMPONENT -
1.71%
6,900 Corning, Inc................................. 1,075,083 1,862,138
----------- ------------
OTHER GENERAL MERCHANDISE STORES - 0.46%
5,000 Costco Wholesale Corp. (a)................... 203,338 165,000
5,900 Wal-Mart Stores, Inc......................... 216,967 339,988
----------- ------------
420,305 504,988
----------- ------------
OTHER INFORMATION SERVICES - 1.07%
4,900 America Online, Inc. (a)..................... 311,397 258,475
7,300 Yahoo!, Inc. (a)............................. 944,019 904,288
----------- ------------
1,255,416 1,162,763
----------- ------------
OTHER MISCELLANEOUS MANUFACTURING - 0.10%
2,100 General Electric Co.......................... 51,215 111,300
----------- ------------
OTHER TELECOMMUNICATIONS - 5.08%
84,200 AT&T Wireless Group (a)...................... 2,483,946 2,347,075
30,200 Nortel Networks Corp......................... 1,825,526 2,061,150
22,000 Sprint Corp.................................. 1,525,154 1,122,000
----------- ------------
5,834,626 5,530,225
----------- ------------
PETROLEUM AND COAL PRODUCTS MANUFACTURING -
1.71%
32,964 BP Amoco plc ADR............................. 1,518,437 1,864,526
----------- ------------
PHARMACEUTICAL AND MEDICINE MANUFACTURING -
11.25%
153,900 Pfizer, Inc. (with rights)................... 4,980,463 7,387,200
20,300 Pharmacia Corp............................... 1,038,047 1,049,256
75,300 Schering-Plough Corp......................... 3,570,714 3,802,650
----------- ------------
9,589,224 12,239,106
----------- ------------
RADIO AND TELEVISION BROADCASTING - 0.63%
10,000 AMFM, Inc. (a)............................... 631,831 690,000
----------- ------------
</TABLE>
97
<PAGE>
FORTIS SERIES FUND, INC.
LARGE CAP GROWTH SERIES (CONTINUED)
Schedule of Investments
June 30, 2000 (Unaudited)
COMMON STOCKS-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ----------- ------------
<C> <S> <C> <C>
SCHEDULED AIR TRANSPORTATION - 0.79%
15,400 Continental Airlines, Inc. Class B (a)....... $ 593,398 $ 723,800
600 Delta Air Lines, Inc......................... 32,947 30,338
1,800 UAL Corp..................................... 114,222 104,738
----------- ------------
740,567 858,876
----------- ------------
SECURITIES AND COMMODITY CONTRACTS AND
BROKERAGE - 2.61%
4,900 Goldman Sachs Group, Inc..................... 439,499 464,887
28,500 Morgan Stanley Dean Witter & Co.............. 1,380,211 2,372,625
----------- ------------
1,819,710 2,837,512
----------- ------------
SEMICONDUCTOR, ELECTRONIC COMPONENT
MANUFACTURING - 12.35%
2,300 E-Tek Dynamics, Inc. (a)..................... 447,012 606,768
48,900 Intel Corp................................... 3,958,355 6,537,318
9,700 Micron Technology, Inc. (a).................. 773,410 854,206
8,900 Solectron Corp. (a).......................... 377,284 372,687
1,500 Texas Instruments, Inc....................... 114,487 103,031
104,800 Tyco International Ltd....................... 3,979,169 4,964,900
----------- ------------
9,649,717 13,438,910
----------- ------------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ----------- ------------
<C> <S> <C> <C>
SOAP, CLEANING COMPOUND, TOILET MANUFACTURING
- 0.04%
800 Colgate-Palmolive Co......................... $ 30,757 $ 47,900
----------- ------------
SOFTWARE PUBLISHERS - 4.65%
46,400 Microsoft Corp. (a).......................... 4,173,668 3,712,000
16,100 Oracle Corp. (a)............................. 900,969 1,353,406
----------- ------------
5,074,637 5,065,406
----------- ------------
WIRED TELECOMMUNICATIONS CARRIERS - 1.49%
2,300 Amdocs Ltd. (a).............................. 167,418 176,525
45,600 AT&T Corp.................................... 1,718,595 1,442,100
----------- ------------
1,886,013 1,618,625
----------- ------------
WIRELESS TELECOMMUNICATIONS CARRIERS - 3.12%
81,900 Vodafone AirTouch plc ADR.................... 4,489,819 3,393,731
----------- ------------
TOTAL COMMON STOCKS.......................... $92,397,731 $105,879,873
=========== ============
</TABLE>
SHORT-TERM INVESTMENTS - 0.58%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
--------- ------------
<C> <S> <C>
OTHER INVESTMENT POOLS AND FUNDS - 0.58%
$629,964 First American Prime Obligation Fund, Current
rate -- 6.20%.............................. $ 629,964
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$93,027,695)(b)............................ $106,509,837
============
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 2000, the cost of securities for federal income tax purposes
was $93,123,086 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $20,615,466
Unrealized depreciation..................................... (7,228,715)
-------------------------------------------------------------------------
Net unrealized appreciation................................. $13,386,751
-------------------------------------------------------------------------
</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 11.27% of total net assets as of June 30, 2000.
98
<PAGE>
FORTIS SERIES FUND, INC.
INVESTORS GROWTH SERIES
Schedule of Investments
June 30, 2000 (Unaudited)
COMMON STOCKS-91.09%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ---------- ----------
<C> <S> <C> <C>
AGENCIES, BROKERAGE AND OTHER INSURANCE
ACTIVITIES - 0.48%
400 Marsh & McLennan Companies, Inc.............. $ 37,408 $ 41,775
---------- ----------
AGRICULTURE, CONSTRUCTION AND MINING
MACHINERY - 0.42%
1,000 Deere & Co................................... 44,712 37,000
---------- ----------
BEVERAGE MANUFACTURING - 1.92%
1,100 Anheuser-Busch Companies, Inc................ 79,066 82,156
1,500 Coca-Cola Co................................. 79,895 86,156
---------- ----------
158,961 168,312
---------- ----------
CABLE AND OTHER SUBSCRIPTION PROGRAMMING -
1.48%
2,100 Comcast Corp. Special Class A (a)............ 76,674 85,050
2,100 USA Networks, Inc. (a)....................... 47,072 45,412
---------- ----------
123,746 130,462
---------- ----------
COMMERCIAL AND SERVICE INDUSTRY MACHINERY
MANUFACTURING - 0.62%
700 Bausch & Lomb, Inc........................... 39,642 54,162
---------- ----------
COMMUNICATIONS EQUIPMENT MANUFACTURING -
4.21%
3,900 Cisco Systems, Inc. (a)...................... 258,153 247,894
675 Comverse Technology, Inc. (a)................ 54,302 62,775
1,500 Motorola, Inc................................ 46,727 43,594
800 Telefonaktiebolaget LM Ericsson AB
Class B.................................... 16,523 15,916
---------- ----------
375,705 370,179
---------- ----------
COMPUTER AND PERIPHERAL EQUIPMENT
MANUFACTURING - 5.02%
700 Cabletron Systems, Inc. (a).................. 15,015 17,675
1,000 Compaq Computer Corp......................... 27,836 25,562
2,300 Dell Computer Corp. (a)...................... 111,464 113,419
1,500 EMC Corp. (a)................................ 95,398 115,406
1,300 Seagate Technology, Inc. (a)................. 66,294 71,500
10 StorageNetworks, Inc. (a).................... 270 902
1,000 Sun Microsystems, Inc. (a)................... 89,040 90,937
50 VERITAS Software Corp. (a)................... 5,466 5,651
---------- ----------
410,783 441,052
---------- ----------
COMPUTER SYSTEMS DESIGN AND RELATED SERVICES
- 4.32%
2,000 Automatic Data Processing, Inc............... 101,076 107,125
500 BISYS Group, Inc. (a)........................ 33,162 30,750
2,900 Cadence Design Systems, Inc. (a)............. 48,040 59,087
300 Check Point Software Technologies Ltd. (a) 57,175 63,525
1,300 Computer Sciences Corp. (a).................. 98,735 97,094
100 Foundry Networks, Inc. (a)................... 10,634 11,050
100 i2 Technologies, Inc. (a).................... 11,356 10,427
10 Stratos Lightwave, Inc. (a).................. 210 279
---------- ----------
360,388 379,337
---------- ----------
DATA PROCESSING, HOSTING AND RELATED SERVICES
- 0.88%
1,300 First Data Corp.............................. 63,538 64,512
300 Fiserv, Inc. (a)............................. 10,725 12,975
---------- ----------
74,263 77,487
---------- ----------
DEPOSITORY CREDIT-BANKING - 1.85%
1,500 Citigroup, Inc............................... 92,074 90,375
1,700 HSBC Holdings plc............................ 20,440 19,444
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ---------- ----------
<C> <S> <C> <C>
500 State Street Corp............................ $ 47,072 $ 53,031
---------- ----------
159,586 162,850
---------- ----------
ELECTRIC GENERATION, TRANSMISSION AND
DISTRIBUTION - 1.76%
3,400 AES Corp. (a)................................ 136,830 155,125
---------- ----------
ELECTRICAL GOODS WHOLESALERS - 0.95%
2,000 American Tower Corp. Class A (a)............. 88,432 83,375
---------- ----------
ELECTROMEDICAL MANUFACTURING - 0.99%
700 Waters Corp. (a)............................. 58,158 87,369
---------- ----------
ELECTRONICS AND APPLIANCE STORES - 0.65%
1,200 RadioShack Corp. (with rights)............... 61,847 56,850
---------- ----------
ENGINE, TURBINE AND POWER TRANSMISSION
EQUIPMENT - 0.00%
10 Capstone Turbine Corp. (a)................... 160 451
---------- ----------
GENERAL MEDICAL AND SURGICAL HOSPITALS -
0.52%
1,500 HCA - The Healthcare Co...................... 45,396 45,562
---------- ----------
GROCERY STORES - 2.12%
1,700 Kroger Co. (a)............................... 32,515 37,506
3,300 Safeway, Inc. (a)............................ 154,070 148,912
---------- ----------
186,585 186,418
---------- ----------
HEALTH AND PERSONAL CARE STORES - 1.32%
2,900 CVS Corp..................................... 124,239 116,000
---------- ----------
INDUSTRIAL MACHINERY MANUFACTURING - 1.26%
200 Applied Materials, Inc. (a).................. 18,803 18,125
600 Emerson Electric Co.......................... 31,914 36,225
1,500 Lam Research Corp. (a)....................... 60,459 56,250
---------- ----------
111,176 110,600
---------- ----------
INSURANCE CARRIERS - 3.19%
1,100 American International Group, Inc............ 115,940 129,250
1,800 AXA Financial, Inc........................... 72,709 61,200
1,600 Hartford Financial Services Group, Inc....... 77,031 89,500
---------- ----------
265,680 279,950
---------- ----------
MOTION PICTURE AND VIDEO INDUSTRIES - 2.07%
2,400 AT&T Corp. - Liberty Media Group
Class A (a)................................ 57,924 58,200
400 UnitedGlobalCom, Inc. Class A (a)............ 20,496 18,700
1,542 Viacom, Inc. Class B (a)..................... 90,860 105,145
---------- ----------
169,280 182,045
---------- ----------
NATURAL GAS DISTRIBUTION - 0.22%
300 Enron Corp................................... 20,990 19,350
---------- ----------
NAVIGATIONAL, MEASURING AND CONTROL
INSTRUMENTS - 0.60%
800 PE Corp. - PE Biosystems Group............... 52,300 52,700
---------- ----------
NEWSPAPER, PERIODICAL, BOOK AND DATABASE
PUBLISHERS - 0.69%
800 Time Warner, Inc............................. 71,006 60,800
---------- ----------
NONDEPOSITORY CREDIT BANKING - 2.10%
500 American Express Co.......................... 23,160 26,062
1,800 Associates First Capital Corp. Class A....... 38,565 40,162
1,800 Freddie Mac.................................. 80,426 72,900
</TABLE>
99
<PAGE>
FORTIS SERIES FUND, INC.
INVESTORS GROWTH SERIES (CONTINUED)
Schedule of Investments
June 30, 2000 (Unaudited)
COMMON STOCKS-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ---------- ----------
<C> <S> <C> <C>
500 Providian Financial Corp..................... $ 44,017 $ 45,000
---------- ----------
186,168 184,124
---------- ----------
OFFICE SUPPLIES, STATIONARY AND GIFT STORES -
0.05%
700 Office Depot, Inc. (a)....................... 8,764 4,375
---------- ----------
OIL AND GAS EXTRACTION - 0.13%
200 Apache Corp.................................. 9,541 11,762
---------- ----------
OTHER ELECTRICAL EQUIPMENT AND COMPONENT -
2.97%
600 Corning, Inc................................. 100,326 161,925
2,500 Metromedia Fiber Network, Inc. Class A (a) 82,116 99,219
---------- ----------
182,442 261,144
---------- ----------
OTHER GENERAL MERCHANDISE STORES - 0.26%
400 Wal-Mart Stores, Inc......................... 21,946 23,050
---------- ----------
OTHER INFORMATION SERVICES - 0.34%
100 Art Technology Group, Inc. (a)............... 7,773 10,094
100 Juniper Networks, Inc. (a)................... 12,667 14,556
100 Vignette Corp. (a)........................... 4,148 5,202
---------- ----------
24,588 29,852
---------- ----------
OTHER MISCELLANEOUS MANUFACTURING - 1.75%
2,900 General Electric Co.......................... 149,726 153,700
---------- ----------
OTHER TELECOMMUNICATIONS - 6.15%
10 Exfo Electro-Optical Engineering, Inc. (a).. 260 439
800 Nextel Communications, Inc. Class A (a)...... 47,039 48,950
3,400 Nortel Networks Corp......................... 188,277 232,050
900 NTL, Inc. (a)................................ 60,114 53,888
1,900 Sprint Corp. (PCS Group) (a)................. 104,839 113,050
200 VoiceStream Wireless Corp. (a)............... 25,708 23,259
1,500 WorldCom, Inc. (a)........................... 64,359 68,813
---------- ----------
490,596 540,449
---------- ----------
PETROLEUM AND COAL PRODUCTS MANUFACTURING -
1.90%
900 Coastal Corp................................. 53,222 54,788
1,800 Royal Dutch Petroleum Co..................... 113,132 112,329
---------- ----------
166,354 167,117
---------- ----------
PHARMACEUTICAL AND MEDICINE MANUFACTURING -
8.02%
2,500 Abbott Laboratories.......................... 104,424 111,406
400 ALZA Corp. (a)............................... 22,396 23,650
2,500 American Home Products Corp.................. 144,903 146,875
1,400 Bristol-Myers Squibb Co...................... 76,741 81,550
100 Genzyme Corp. - General Division (a)......... 5,474 5,944
3,575 Pfizer, Inc. (with rights)................... 145,877 171,600
2,700 Pharmacia Corp............................... 151,245 139,556
200 Sepracor, Inc. (a)........................... 18,487 24,125
---------- ----------
669,547 704,706
---------- ----------
PIPELINE TRANSPORTATION OF NATURAL
GAS - 0.31%
400 Dynegy, Inc. Class A......................... 28,988 27,325
---------- ----------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ---------- ----------
<C> <S> <C> <C>
RADIO AND TELEVISION BROADCASTING - 0.93%
1,100 Infinity Broadcasting Corp. Class A (a)...... $ 33,124 $ 40,081
400 Univision Communications, Inc.
Class A (a)................................ 41,283 41,400
---------- ----------
74,407 81,481
---------- ----------
SEMICONDUCTOR, ELECTRONIC COMPONENT
MANUFACTURING - 11.34%
400 Altera Corp. (a)............................. 38,906 40,775
500 Analog Devices, Inc. (a)..................... 32,631 38,000
600 Atmel Corp. (a).............................. 24,366 22,125
1,300 Flextronics International Ltd. (a)........... 86,433 89,294
1,600 Intel Corp................................... 197,215 213,900
1,500 LSI Logic Corp. (a).......................... 83,085 81,188
2,500 Micron Technology, Inc. (a).................. 169,853 220,156
1,300 National Semiconductor Corp. (a)............. 81,493 73,775
100 Sanmina Corp. (a)............................ 5,501 8,550
4,400 Tyco International Ltd....................... 199,533 208,450
---------- ----------
919,016 996,213
---------- ----------
SOAP, CLEANING COMPOUND, TOILET MANUFACTURING
- 0.25%
500 Clorox Co.................................... 22,411 22,406
---------- ----------
SOFTWARE PUBLISHERS - 9.70%
300 BEA Systems, Inc. (a)........................ 11,962 14,831
1,300 BMC Software, Inc. (a)....................... 53,366 47,430
200 Commerce One, Inc. (a)....................... 10,466 9,078
1,500 Computer Associates International, Inc....... 75,296 76,781
200 E.piphany, Inc. (a).......................... 20,243 21,438
200 Mercury Interactive Corp. (a)................ 15,237 19,350
3,300 Microsoft Corp. (a).......................... 244,058 264,000
1,300 Oracle Corp. (a)............................. 100,992 109,281
800 Rational Software Corp. (a).................. 60,708 74,350
200 Siebel Systems, Inc. (a)..................... 23,562 32,713
1,037 VeriSign, Inc. (a)........................... 138,983 183,031
---------- ----------
754,873 852,283
---------- ----------
SUPPORT ACTIVITIES FOR MINING - 3.16%
2,400 Baker Hughes, Inc............................ 73,625 76,800
1,400 Global Marine, Inc. (a)...................... 37,964 39,463
1,300 Halliburton Co............................... 55,901 61,344
1,000 Noble Drilling Corp. (a)..................... 36,270 41,188
1,100 Transocean Sedco Forex, Inc.................. 50,504 58,781
---------- ----------
254,264 277,576
---------- ----------
TOBACCO MANUFACTURING - 0.33%
1,100 Philip Morris Companies, Inc................. 30,179 29,219
---------- ----------
WIRED TELECOMMUNICATIONS CARRIERS - 2.54%
300 Alltel Corp.................................. 19,136 18,581
400 Amdocs Ltd. (a).............................. 29,108 30,700
3,300 Global Crossing Ltd. (a)..................... 101,548 86,831
2 KPN N.V...................................... 105 90
1,200 NEXTLINK Communications, Inc.
Class A (a)................................ 42,893 45,525
600 Tellabs, Inc. (a)............................ 42,277 41,064
---------- ----------
235,067 222,791
---------- ----------
WIRELESS TELECOMMUNICATIONS CARRIERS - 1.32%
28,600 Vodafone AirTouch plc........................ 135,396 115,604
---------- ----------
TOTAL COMMON STOCKS.......................... $7,541,546 $8,004,388
========== ==========
</TABLE>
100
<PAGE>
SHORT-TERM INVESTMENTS - 9.37%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
--------- ----------
<C> <S> <C>
DEPOSITORY CREDIT-BANKING - 9.37%
$823,774 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 6.42%........ $ 823,774
----------
TOTAL INVESTMENTS IN SECURITIES (COST:
$8,365,320)(b)............................. $8,828,162
==========
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 2000, the cost of securities for federal tax purposes was
$8,404,924 and the aggregate gross unrealized appreciation and depreciation
based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation.......................................... $ 601,232
Unrealized depreciation.......................................... (177,994)
------------------------------------------------------------------------------
Net unrealized appreciation...................................... $ 423,238
------------------------------------------------------------------------------
</TABLE>
(c) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets. Market value of investments in foreign
securities represents 7.35% of total net assets as of June 30, 2000.
101
<PAGE>
FORTIS SERIES FUND, INC.
GROWTH STOCK SERIES
Schedule of Investments
June 30, 2000 (Unaudited)
COMMON STOCKS-91.12%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ --------------
<C> <S> <C> <C>
ACTIVITIES RELATED TO CREDIT BANKING - 1.19%
540,000 Concord EFS, Inc. (a)........................ $ 11,950,675 $ 14,040,000
------------ --------------
ADVERTISING AND RELATED SERVICES - 1.41%
292,500 Young & Rubicam, Inc......................... 9,624,099 16,727,344
------------ --------------
COMMERCIAL AND SERVICE INDUSTRY MACHINERY
MANUFACTURING - 0.71%
90,000 Orbotech Ltd. (a)............................ 9,101,418 8,358,750
------------ --------------
COMMUNICATIONS EQUIPMENT MANUFACTURING -
6.56%
225,000 Comverse Technology, Inc. (a)................ 5,383,447 20,925,000
27,100 Digital Lightwave, Inc. (a).................. 1,485,093 2,723,550
209,100 Efficient Networks, Inc. (a)................. 11,467,013 15,381,918
132,700 Extreme Networks, Inc. (a)................... 8,874,413 13,999,850
123,800 MRV Communications, Inc. (a)................. 7,763,225 8,325,550
137,200 Netro Corp. (a).............................. 8,014,612 7,871,850
90,100 Polycom, Inc. (a)............................ 9,508,263 8,477,847
------------ --------------
52,496,066 77,705,565
------------ --------------
COMPUTER AND PERIPHERAL EQUIPMENT
MANUFACTURING - 1.16%
45,000 Silicon Storage Technology, Inc. (a) 3,456,445 3,974,063
180,000 Symbol Technologies, Inc..................... 10,574,376 9,720,000
------------ --------------
14,030,821 13,694,063
------------ --------------
COMPUTER SYSTEMS DESIGN AND RELATED SERVICES
- 3.19%
90,000 Check Point Software Technologies
Ltd. (a)................................... 2,400,050 19,057,500
225,000 SunGard Data Systems, Inc. (a)............... 8,371,102 6,975,000
262,500 Titan Corp. (a).............................. 12,380,927 11,746,876
------------ --------------
23,152,079 37,779,376
------------ --------------
DEPOSITORY CREDIT-BANKING - 2.21%
180,000 City National Corp........................... 6,609,116 6,390,000
180,000 Silicon Valley Bancshares (a)................ 5,776,587 7,672,500
263,300 Zions Bancorporation......................... 13,504,966 12,083,002
------------ --------------
25,890,669 26,145,502
------------ --------------
ELECTRIC GENERATION, TRANSMISSION AND
DISTRIBUTION - 3.00%
540,000 Calpine Corp. (a)............................ 10,185,734 35,505,000
------------ --------------
ELECTRICAL GOODS WHOLESALERS - 0.26%
51,000 Avnet, Inc................................... 3,768,772 3,021,750
------------ --------------
ELECTROMEDICAL MANUFACTURING - 1.80%
170,800 Waters Corp. (a)............................. 5,195,893 21,317,976
------------ --------------
HOME FURNISHINGS STORES - 0.07%
21,700 Bed Bath & Beyond, Inc. (a).................. 837,112 786,625
------------ --------------
INDUSTRIAL MACHINERY MANUFACTURING - 0.57%
180,000 Lam Research Corp. (a)....................... 7,165,212 6,750,000
------------ --------------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ --------------
<C> <S> <C> <C>
INSURANCE CARRIERS - 1.89%
360,000 Ace Ltd...................................... $ 9,159,478 $ 10,080,000
225,000 Ambac Financial Group, Inc................... 11,901,466 12,332,813
------------ --------------
21,060,944 22,412,813
------------ --------------
INVESTIGATION AND SECURITY SERVICES - 1.08%
270,000 Expeditors International of Washington,
Inc........................................ 8,456,901 12,825,000
------------ --------------
MANAGEMENT, SCIENTIFIC AND TECH CONSULTING
SERVICES - 0.84%
135,000 TMP Worldwide, Inc. (a)...................... 5,241,737 9,964,688
------------ --------------
MEDICAL EQUIPMENT AND SUPPLIES MANUFACTURING
- 1.23%
225,000 Biomet, Inc.................................. 8,524,349 8,648,438
135,000 Stryker Corp................................. 5,228,007 5,906,250
------------ --------------
13,752,356 14,554,688
------------ --------------
NAVIGATIONAL, MEASURING AND CONTROL
INSTRUMENTS - 2.80%
90,000 L-3 Communications Holdings, Inc. (a)........ 5,151,836 5,135,625
360,000 National Instruments Corp. (a)............... 6,982,616 15,705,000
186,800 PE Corp. - PE Biosystems Group............... 5,930,207 12,305,450
------------ --------------
18,064,659 33,146,075
------------ --------------
NONDEPOSITORY CREDIT BANKING - 0.36%
247,500 AmeriCredit Corp. (a)........................ 3,886,063 4,207,500
------------ --------------
OIL AND GAS EXTRACTION - 0.76%
270,000 EOG Resources, Inc........................... 7,876,073 9,045,000
------------ --------------
OTHER ELECTRICAL EQUIPMENT AND COMPONENT -
2.93%
270,000 Advanced Fibre Communications, Inc. (a)...... 8,253,479 12,234,375
135,000 CIENA Corp. (a).............................. 6,419,104 22,502,813
------------ --------------
14,672,583 34,737,188
------------ --------------
OTHER GENERAL MERCHANDISE
STORES - 1.27%
172,900 BJ's Wholesale Club, Inc. (a)................ 5,957,385 5,705,700
236,250 Dollar Tree Stores, Inc. (a)................. 7,773,046 9,346,641
------------ --------------
13,730,431 15,052,341
------------ --------------
OTHER INFORMATION SERVICES - 1.12%
67,500 Inktomi Corp. (a)............................ 5,379,190 7,981,875
97,000 WatchGuard Technologies, Inc. (a) 6,689,535 5,328,937
------------ --------------
12,068,725 13,310,812
------------ --------------
OTHER TELECOMMUNICATIONS - 0.81%
245,200 MasTec, Inc. (a)............................. 9,428,885 9,363,575
20,300 US Unwired, Inc. (a)......................... 223,300 263,900
------------ --------------
9,652,185 9,627,475
------------ --------------
PHARMACEUTICAL AND MEDICINE MANUFACTURING -
10.12%
180,000 Alpharma, Inc................................ 6,840,000 11,205,000
225,000 ALZA Corp. (a)............................... 8,846,330 13,303,125
351,000 Biovail Corp. (a)............................ 10,419,376 19,458,563
</TABLE>
102
<PAGE>
COMMON STOCKS-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ --------------
<C> <S> <C> <C>
243,600 IVAX Corp.................................... $ 7,964,301 $ 10,109,400
252,000 Jones Pharma, Inc............................ 5,716,799 10,064,250
308,775 King Pharmaceuticals, Inc. (a)............... 8,633,842 13,547,503
4,500 Medarex, Inc. (a)............................ 357,750 380,250
303,900 MedImmune, Inc. (a).......................... 4,558,912 22,488,600
124,900 QLT PhotoTherapeutics, Inc. (a).............. 6,540,191 9,656,331
180,000 Watson Pharmaceuticals, Inc. (a)............. 7,360,536 9,675,000
------------ --------------
67,238,037 119,888,022
------------ --------------
RADIO AND TELEVISION
BROADCASTING - 3.89%
290,400 Cox Radio, Inc. (a).......................... 4,177,358 8,131,200
180,000 Hispanic Broadcasting Corp. (a).............. 5,234,144 5,962,500
303,750 Infinity Broadcasting Corp. Class A (a)...... 5,430,991 11,067,891
202,500 Univision Communications, Inc.
Class A (a)................................ 6,256,009 20,958,750
------------ --------------
21,098,502 46,120,341
------------ --------------
SCIENTIFIC RESEARCH AND DEVELOPMENT SERVICES
- 1.78%
22,500 Affymetrix, Inc. (a)......................... 2,407,219 3,715,313
270,000 Biogen, Inc. (a)............................. 16,001,223 17,415,000
------------ --------------
18,408,442 21,130,313
------------ --------------
SEMICONDUCTOR, ELECTRONIC COMPONENT
MANUFACTURING - 15.54%
135,000 Alpha Industries, Inc. (a)................... 6,930,441 5,948,438
135,000 Amphenol Corp. Class A (a)................... 6,631,875 8,935,312
116,100 Analog Devices, Inc. (a)..................... 2,627,280 8,823,600
270,000 Celestica, Inc. (a).......................... 5,500,216 13,398,750
296,400 Dallas Semiconductor Corp.................... 10,140,822 12,078,300
141,700 EMCORE Corp. (a)............................. 19,490,154 17,004,000
180,000 Finisar Corp. (a)............................ 3,889,692 4,713,750
202,400 Flextronics International Ltd. (a)........... 6,849,975 13,902,350
270,000 Intersil Holding Corp. (a)................... 12,154,921 14,596,875
225,000 LSI Logic Corp. (a).......................... 4,176,667 12,178,125
360,000 Methode Electronics, Inc..................... 13,351,347 13,905,000
105,600 SDL, Inc. (a)................................ 3,502,809 30,115,800
90,000 TriQuint Semiconductor, Inc. (a)............. 8,140,743 8,611,875
211,400 Virata Corp. (a)............................. 12,332,160 12,604,725
191,250 Vishay Intertechnology, Inc. (a)............. 2,278,384 7,255,546
------------ --------------
117,997,486 184,072,446
------------ --------------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ --------------
<C> <S> <C> <C>
SHOE STORES - 0.19%
225,000 Venator Group, Inc........................... $ 2,823,995 $ 2,306,250
------------ --------------
SOFTWARE PUBLISHERS - 7.36%
337,600 BEA Systems, Inc. (a)........................ 2,041,885 16,690,100
225,000 Mercury Interactive Corp. (a)................ 4,005,962 21,768,750
497,000 Peregrine Systems, Inc. (a).................. 10,333,952 17,239,687
78,750 Siebel Systems, Inc. (a)..................... 2,013,110 12,880,546
105,600 VeriSign, Inc. (a)........................... 6,572,230 18,638,400
------------ --------------
24,967,139 87,217,483
------------ --------------
SUPPORT ACTIVITIES FOR MINING - 7.16%
103,500 BJ Services Co. (a).......................... 4,128,506 6,468,750
315,000 ENSCO International, Inc..................... 7,043,159 11,280,937
450,000 Grant Prideco, Inc. (a)...................... 7,326,979 11,250,000
405,000 Nabors Industries, Inc. (a).................. 10,045,514 16,832,812
292,500 Noble Drilling Corp. (a)..................... 7,440,015 12,047,343
225,000 Santa Fe International Corp.................. 6,202,065 7,860,937
90,000 Smith International, Inc. (a)................ 6,826,447 6,553,125
315,000 Weatherford International, Inc. (a).......... 8,284,131 12,540,937
------------ --------------
57,296,816 84,834,841
------------ --------------
TELECOMMUNICATIONS RESELLERS - 0.58%
180,000 Digital Microwave Corp. (a).................. 6,666,468 6,862,500
------------ --------------
TRAVELER ACCOMMODATION - 0.60%
585,000 Park Place Entertainment Corp. (a) 6,653,621 7,129,687
------------ --------------
UTILITY SYSTEM CONTRUCTION - 0.98%
210,250 Quanta Services, Inc. (a).................... 6,896,558 11,563,750
------------ --------------
WIRED TELECOMMUNICATIONS CARRIERS - 5.52%
338,400 Amdocs Ltd. (a).............................. 7,941,115 25,972,200
90,000 Copper Mountain Networks, Inc. (a) 7,743,519 7,931,250
136,400 Inet Technologies, Inc. (a).................. 5,718,644 7,399,700
135,000 Redback Networks, Inc. (a)................... 9,694,714 24,030,000
------------ --------------
31,097,992 65,333,150
------------ --------------
WIRELESS TELECOMMUNICATIONS CARRIERS - 0.18%
225,000 UbiquiTel, Inc. (a).......................... 1,800,000 2,123,437
------------ --------------
TOTAL COMMON STOCKS.......................... $664,806,263 $1,079,297,751
============ ==============
</TABLE>
SHORT-TERM INVESTMENTS-10.22%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
----------- --------------
<C> <S> <C>
CONSUMER LENDING - 0.57%
$6,755,000 Associates Corp. Master Variable Rate Note,
Current rate -- 6.53%...................... $ 6,755,000
--------------
DEPOSITORY CREDIT-BANKING - 4.75%
56,221,094 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 6.42%........ 56,221,094
--------------
OTHER DIRECT FEDERAL OBLIGATIONS - 0.84%
10,000,000 Federal Home Loan Bank, 6.48%, 7-6-2000...... 9,989,367
--------------
</TABLE>
103
<PAGE>
FORTIS SERIES FUND, INC.
GROWTH STOCK SERIES (CONTINUED)
Schedule of Investments
June 30, 2000 (Unaudited)
SHORT-TERM INVESTMENTS-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
----------- --------------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES - 4.06%
$20,000,000 Federal Home Loan Mortgage Corp., 6.53%,
7-11-2000.................................. $ 19,960,828
28,200,000 Federal Home Loan Mortgage Corp., 6.57%,
7-18-2000.................................. 28,108,906
--------------
48,069,734
--------------
TOTAL SHORT-TERM INVESTMENTS................. 121,035,195
--------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$785,841,458)(b)........................... $1,200,332,946
==============
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 2000, the cost of securities for federal income tax purposes
was $786,386,585 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $433,666,343
Unrealized depreciation..................................... (19,719,982)
--------------------------------------------------------------------------
Net unrealized appreciation................................. $413,946,361
--------------------------------------------------------------------------
</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 5.2% of total net assets as of June 30, 2000.
104
<PAGE>
FORTIS SERIES FUND, INC.
AGGRESSIVE GROWTH SERIES
Schedule of Investments
June 30, 2000 (Unaudited)
COMMON STOCKS-93.37%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
APPAREL, PIECE GOODS AND NOTIONS
WHOLESALERS - 0.60%
64,800 Kenneth Cole Productions, Inc.
Class A (a)................................ $ 1,152,589 $ 2,592,000
------------ ------------
ARCHITECTURAL, ENGINEERING AND RELATED
SERVICES - 1.74%
67,000 Plexus Corp. (a)............................. 6,017,572 7,571,000
------------ ------------
CIVIC AND SOCIAL ORGANIZATIONS - 0.33%
198,200 Student Advantage, Inc. (a).................. 3,238,329 1,449,338
------------ ------------
CLOTHING STORES - 1.25%
112,500 Charlotte Russe Holding, Inc. (a)............ 1,438,608 1,181,250
167,200 Too, Inc. (a)................................ 3,489,729 4,253,150
------------ ------------
4,928,337 5,434,400
------------ ------------
COLLEGES, UNIVERSITIES AND PROFESSIONAL
SCHOOLS - 1.18%
106,300 Career Education Corp. (a)................... 3,086,097 5,155,550
------------ ------------
COMMERCIAL AND SERVICE INDUSTRY MACHINERY
MANUFACTURING - 0.46%
21,500 Orbotech Ltd. (a)............................ 1,890,992 1,996,813
------------ ------------
COMMUNICATIONS EQUIPMENT MANUFACTURING -
6.79%
65,000 ANADIGICS, Inc. (a).......................... 2,238,762 2,214,063
40,500 AudioCodes Ltd. (a).......................... 2,789,633 4,860,000
80,000 Com21, Inc. (a).............................. 2,521,432 2,000,000
125,500 Netro Corp. (a).............................. 5,504,698 7,200,562
55,500 Polycom, Inc. (a)............................ 3,931,669 5,222,203
193,300 REMEC, Inc. (a).............................. 6,080,750 8,094,437
------------ ------------
23,066,944 29,591,265
------------ ------------
COMPUTER AND PERIPHERAL EQUIPMENT
MANUFACTURING - 1.54%
37,900 Emulex Corp. (a)............................. 2,790,993 2,489,556
66,000 SanDisk Corp. (a)............................ 2,545,250 4,038,375
2,200 StorageNetworks, Inc. (a).................... 59,400 198,550
------------ ------------
5,395,643 6,726,481
------------ ------------
COMPUTER SYSTEMS DESIGN AND RELATED SERVICES
- 8.86%
81,000 Cognizant Technology Solutions Corp. (a)..... 1,393,312 2,688,188
88,000 Mercury Computer Systems, Inc. (a)........... 1,733,283 2,843,500
33,000 ONI Systems, Corp. (a)....................... 2,325,595 3,867,703
108,000 Optimal Robotics Corp. (a)................... 3,973,612 4,144,500
5,500 Stratos Lightwave, Inc. (a).................. 115,500 153,313
148,400 Titan Corp. (a).............................. 6,464,170 6,640,900
49,450 Turnstone Systems, Inc. (a).................. 5,946,645 8,192,474
142,500 Vyyo, Inc. (a)............................... 2,997,722 3,847,500
160,400 WebTrends Corp. (a).......................... 5,770,612 6,205,475
------------ ------------
30,720,451 38,583,553
------------ ------------
DEPOSITORY CREDIT-BANKING - 1.42%
144,600 Silicon Valley Bancshares (a)................ 3,044,451 6,163,575
------------ ------------
DRUGS AND DRUGGISTS SUNDRIES
WHOLESALERS - 1.19%
70,000 Priority Healthcare Corp. Class B (a)........ 3,277,972 5,201,875
------------ ------------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
ELECTRICAL GOODS WHOLESALERS - 0.29%
47,000 Nu Horizons Electronics Corp. (a)............ $ 1,318,336 $ 1,251,375
------------ ------------
ENGINE, TURBINE AND POWER TRANSMISSION
EQUIPMENT - 0.03%
3,000 Capstone Turbine Corp. (a)................... 48,000 135,188
------------ ------------
GENERAL FREIGHT TRUCKING - 0.56%
60,750 Forward Air Corp. (a)........................ 881,252 2,430,000
------------ ------------
GLASS AND GLASS PRODUCT MANUFACTURING - 1.39%
165,000 Applied Films Corp. (a)...................... 3,877,500 6,043,125
------------ ------------
HEALTH AND PERSONAL CARE STORES - 2.62%
126,700 Accredo Health, Inc. (a)..................... 2,191,495 4,379,069
162,800 PolyMedica Corp. (a)......................... 4,853,180 7,041,100
------------ ------------
7,044,675 11,420,169
------------ ------------
INDUSTRIAL MACHINERY
MANUFACTURING - 1.79%
99,000 Asyst Technologies, Inc. (a)................. 1,802,991 3,390,750
70,000 Varian Semiconductor Equipment Associates,
Inc. (a)................................... 4,565,015 4,396,875
------------ ------------
6,368,006 7,787,625
------------ ------------
MANAGEMENT, SCIENTIFIC AND TECH CONSULTING
SERVICES - 0.91%
45,000 Diamond Technology Partners, Inc. (a)........ 1,151,517 3,960,000
------------ ------------
MEDICAL EQUIPMENT AND SUPPLIES
MANUFACTURING - 3.14%
92,500 ArthoCare Corp. (a).......................... 4,711,321 4,925,625
130,000 Cytyc Corp. (a).............................. 6,400,407 6,938,750
50,000 INAMED Corp. (a)............................. 1,790,625 1,831,250
------------ ------------
12,902,353 13,695,625
------------ ------------
MOTION PICTURE AND VIDEO
INDUSTRIES - 1.35%
92,300 Macrovision Corp. (a)........................ 2,413,925 5,899,989
------------ ------------
NAVIGATIONAL, MEASURING AND CONTROL
INSTRUMENTS - 1.53%
31,000 Electro Scientific Industries, Inc. (a)...... 939,528 1,364,969
49,500 Newport Corp................................. 929,695 5,315,063
------------ ------------
1,869,223 6,680,032
------------ ------------
OFFICES OF OTHER HEALTH
PRACTITIONERS - 0.65%
342,000 Hooper Holmes, Inc........................... 4,700,747 2,832,307
------------ ------------
OIL AND GAS EXTRACTION - 0.85%
110,000 EOG Resources, Inc........................... 2,929,388 3,685,000
------------ ------------
OTHER ELECTRICAL EQUIPMENT AND COMPONENT -
1.48%
67,500 Advanced Fibre Communications, Inc. (a)...... 1,768,732 3,058,594
82,500 CommScope, Inc. (a).......................... 2,410,563 3,382,500
------------ ------------
4,179,295 6,441,094
------------ ------------
</TABLE>
105
<PAGE>
FORTIS SERIES FUND, INC.
AGGRESSIVE GROWTH SERIES (CONTINUED)
Schedule of Investments
June 30, 2000 (Unaudited)
COMMON STOCKS-CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
OTHER FINANCIAL INVESTMENT
ACTIVITIES - 0.86%
81,000 Eaton Vance Corp............................. $ 2,577,262 $ 3,746,250
------------ ------------
OTHER INFORMATION
SERVICES - 4.57%
84,400 Art Technology Group, Inc. (a)............... 4,085,808 8,519,125
31,000 C-bridge Internet Solutions, Inc. (a)........ 1,048,876 538,625
117,400 Information Architects Corp. (a)............. 1,955,554 814,463
101,500 LifeMinders, Inc. (a)........................ 3,595,122 3,000,594
44,000 National Information Consortium, Inc. (a).... 534,000 500,500
118,500 WatchGuard Technologies, Inc. (a)............ 6,918,841 6,510,094
------------ ------------
18,138,201 19,883,401
------------ ------------
OTHER INVESTMENT POOLS AND FUNDS - 1.49%
192,500 Allied Capital Corp.......................... 3,272,500 3,272,500
135,200 American Capital Strategies Ltd.............. 2,557,641 3,227,900
------------ ------------
5,830,141 6,500,400
------------ ------------
OTHER TELECOMMUNICATIONS - 0.04%
4,400 Exfo Electro-Optical Engineering,
Inc. (a)................................... 114,400 193,050
------------ ------------
PHARMACEUTICAL AND MEDICINE MANUFACTURING -
8.51%
37,600 Abgenix, Inc. (a)............................ 1,176,109 4,506,713
125,000 DUSA Pharmaceuticals, Inc. (a)............... 3,061,547 3,687,500
45,000 Invitrogen Corp. (a)......................... 1,691,860 3,384,141
158,000 Jones Pharma, Inc............................ 3,943,895 6,310,125
69,800 Medarex, Inc. (a)............................ 4,055,185 5,898,100
122,500 Noven Pharmaceuticals, Inc. (a).............. 1,827,504 3,682,656
50,300 Pharmacyclics, Inc. (a)...................... 1,695,306 3,068,300
137,500 Tanox, Inc. (a).............................. 3,940,233 6,505,469
------------ ------------
21,391,639 37,043,004
------------ ------------
PLASTICS PRODUCT MANUFACTURING - 0.14%
142,500 U.S. Plastic Lumber Corp. (a)................ 1,508,769 627,891
------------ ------------
PROFESSIONAL AND COMMERCIAL EQUIPMENT
WHOLESALERS - 0.86%
169,100 BioSource International, Inc. (a)............ 2,797,370 3,762,475
------------ ------------
RADIO AND TELEVISION BROADCASTING - 2.59%
120,000 Emmis Communications Corp. Class A (a)....... 4,533,888 4,965,000
85,450 Radio One, Inc. (a).......................... 2,255,689 2,526,116
170,900 Radio One, Inc. Class D (a).................. 4,233,429 3,770,481
------------ ------------
11,023,006 11,261,597
------------ ------------
SCIENTIFIC RESEARCH AND DEVELOPMENT SERVICES
- 2.77%
111,800 Cell Genesys, Inc. (a)....................... 1,546,645 3,130,400
70,500 Cephalon, Inc. (a)........................... 1,946,579 4,221,188
123,800 Orchid Biosciences (a)....................... 990,400 4,700,531
------------ ------------
4,483,624 12,052,119
------------ ------------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
<C> <S> <C> <C>
SEMICONDUCTOR, ELECTRONIC COMPONENT
MANUFACTURING - 16.03%
95,000 Actel Corp. (a).............................. $ 2,854,097 $ 4,334,375
120,000 Aeroflex, Inc. (a)........................... 4,289,339 5,962,500
87,300 Alpha Industries, Inc. (a)................... 2,169,160 3,846,656
96,300 ASM International N.V. (a)................... 2,792,700 2,551,950
39,500 DDi Corp. (a)................................ 1,048,396 1,125,750
65,000 Elantec Semiconductor, Inc. (a).............. 2,376,074 4,525,625
87,100 Exar Corp. (a)............................... 4,889,868 7,594,031
200,000 General Semiconductor, Inc. (a).............. 3,657,717 2,950,000
42,000 Kopin Corp. (a).............................. 710,455 2,908,500
69,000 Micrel, Inc. (a)............................. 1,188,656 2,997,187
100,000 Microsemi Corp. (a).......................... 4,723,279 3,393,750
50,000 Pericom Semiconductor Corp. (a).............. 3,070,385 3,400,000
37,750 Quantum Effect Devices, Inc. (a)............. 2,556,010 2,151,750
62,500 Silicon Image, Inc. (a)...................... 3,656,845 3,117,187
73,000 TranSwitch Corp. (a)......................... 2,694,938 5,634,687
90,100 TriQuint Semiconductor, Inc. (a)............. 4,149,723 8,621,443
79,000 Virata Corp. (a)............................. 3,761,041 4,710,375
------------ ------------
50,588,683 69,825,766
------------ ------------
SOFTWARE PUBLISHERS - 9.07%
60,000 Actuate Corp. (a)............................ 1,706,052 3,202,500
60,000 Adept Technology, Inc. (a)................... 2,199,204 2,805,000
53,500 Allaire Corp. (a)............................ 2,571,185 1,966,125
100 American Software, Inc. Class A (a).......... 1,021 512
82,000 Business Objects S.A. ADR (a)................ 4,053,829 7,226,250
22,500 Interwoven, Inc. (a)......................... 1,905,883 2,474,648
54,000 Mercury Interactive Corp. (a)................ 827,380 5,224,500
62,000 Micromuse, Inc. (a).......................... 4,190,932 10,260,031
142,600 Netplex Group, Inc. (a)...................... 1,091,968 307,481
90,000 New Era of Networks, Inc. (with
rights) (a)................................ 3,023,271 3,825,000
55,000 Visual Networks, Inc. (a).................... 3,251,093 1,567,500
26,000 Websense, Inc. (a)........................... 468,000 653,250
------------ ------------
25,289,818 39,512,797
------------ ------------
SUPPORT ACTIVITIES FOR
MINING - 1.39%
96,200 Core Laboratories N.V. (a)................... 2,513,225 2,789,800
53,800 Hanover Compressor Co. (a)................... 1,444,587 2,044,400
30,000 UTI Energy Corp. (a)......................... 754,566 1,203,750
------------ ------------
4,712,378 6,037,950
------------ ------------
TELECOMMUNICATIONS RESELLERS - 1.13%
128,500 Digital Microwave Corp. (a).................. 4,517,298 4,899,062
------------ ------------
TOY MANUFACTURING - 0.91%
268,500 JAKKS Pacific, Inc. (a)...................... 5,143,885 3,960,375
------------ ------------
WIRELESS TELECOMMUNICATIONS CARRIERS - 1.06%
105,900 BreezeCom Ltd. (a)........................... 3,593,581 4,606,650
------------ ------------
TOTAL COMMON STOCKS.......................... $297,213,649 $406,640,166
============ ============
</TABLE>
106
<PAGE>
PREFERRED STOCKS - 0.06%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost (b) Value (c)
------- ------------ ------------
<C> <S> <C> <C>
SOFTWARE PUBLISHERS - 0.06%
11,800 Precise Software Solutions Ltd. (a).......... $ 188,800 $ 283,200
------------ ------------
TOTAL LONG-TERM INVESTMENTS.................. $297,402,449 $406,923,366
============ ============
</TABLE>
SHORT-TERM INVESTMENTS-4.96%
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value (c)
------------ ------------
<C> <S> <C>
CONSUMER LENDING - 0.33%
$ 1,417,000 Associates Corp. Master Variable Rate Note,
Current rate -- 6.53%...................... $ 1,417,000
------------
DEPOSITORY CREDIT-BANKING - 4.63%
20,175,323 U.S. Bank N.A. Money Market Variable Rate
Time Deposit, Current rate -- 6.42%........ 20,175,323
------------
TOTAL SHORT-TERM INVESTMENTS................. 21,592,323
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$318,994,772)(b)........................... $428,515,689
============
</TABLE>
(a) Presently not paying dividend income.
(b) At June 30, 2000, the cost of securities for federal income tax purposes
was $318,994,772 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<TABLE>
<S> <C>
Unrealized appreciation.......................................... $131,430,118
Unrealized depreciation.......................................... (21,909,201)
-------------------------------------------------------------------------------
Net unrealized appreciation...................................... $109,520,917
-------------------------------------------------------------------------------
</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 3.99% of total net assets as of June 30, 2000.
107
<PAGE>
FORTIS SERIES FUND, INC.
Statements of Assets and Liabilities
(Unaudited)
June 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY U.S. GOV'T. DIVERSIFIED MULTISECTOR 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).................... $89,278,541 $141,688,054 $ 92,910,873 $19,906,216 $64,035,001
Foreign currency on deposit with
custodian........................... -- -- -- -- --
Collateral for securities lending
transactions (Note 1)............... -- 30,763,112 12,000,000 -- --
Receivables:
Unrealized appreciation on forward
foreign currency contracts
(Note 1 and 3).................... -- -- -- -- --
Investment securities sold.......... -- -- 540,125 -- 1,043,125
Interest and dividends.............. 42,653 884,932 1,703,990 385,333 1,186,992
Prepaid expenses...................... 6,653 7,523 5,255 5,718 3,741
----------- ------------ ------------ ----------- -----------
TOTAL ASSETS............................ 89,327,847 173,343,621 107,160,243 20,297,267 66,268,859
----------- ------------ ------------ ----------- -----------
LIABILITIES:
Bank overdraft........................ -- -- -- -- --
Unrealized depreciation on forward
foreign currency contracts (Note 1
and 3).............................. -- -- -- -- --
Payable upon return of securities
loaned (Note 1)..................... -- 30,763,112 12,000,000 -- --
Payable for investment securities
purchased........................... -- 14,318,812 480,890 209,101 3,278,920
Payable for investment advisory and
management fees (Note 2)............ 22,754 49,306 36,946 12,125 25,727
Accounts payable and accrued
expenses............................ 8,340 28,816 24,068 10,370 15,299
----------- ------------ ------------ ----------- -----------
TOTAL LIABILITIES....................... 31,094 45,160,046 12,541,904 231,596 3,319,946
----------- ------------ ------------ ----------- -----------
NET ASSETS:
Net proceeds of capital stock, par
value $.01 per share-authorized
20,000,000,000 shares; **........... 81,973,263 138,287,899 100,812,451 21,843,151 71,089,225
Unrealized appreciation (depreciation)
of investments in securities and
other assets and liabilities
denominated in foreign currency..... -- (899,694) (4,560,618) (55,329) (4,466,714)
Undistributed (excess of distrubutions
over) net investment income......... 7,379,542 12,382,713 11,035,974 (514,070) 9,680,074
Accumulated net realized gain (loss)
from sale of investments and foreign
currency............................ (56,052) (21,587,343) (12,669,468) (1,208,081) (13,353,672)
----------- ------------ ------------ ----------- -----------
TOTAL NET ASSETS........................ $89,296,753 $128,183,575 $ 94,618,339 $20,065,671 $62,948,913
=========== ============ ============ =========== ===========
NET ASSET VALUE PER SHARE............... $11.53 $10.49 $11.16 $10.21 $9.01
=========== ============ ============ =========== ===========
*Cost................................... $89,278,541 $142,587,748 $ 97,471,491 $19,960,364 $68,501,715
**Outstanding shares.................... 7,744,972 12,219,607 8,480,272 1,964,586 6,988,474
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
108
<PAGE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL ASSET ASSET AMERICAN CAPITAL GROWTH &
ALLOCATION ALLOCATION LEADERS VALUE OPPORTUNITIES INCOME
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)...................... $55,338,159 $678,938,304 $5,461,251 $ 90,167,951 $9,172,559 $296,770,103
Foreign currency on deposit with
custodian............................. 1,025,470 -- -- -- -- --
Collateral for securities lending
transactions (Note 1)................. -- 166,693,058 -- 17,606,300 -- 39,064,911
Receivables:
Unrealized appreciation on forward
foreign currency contracts (Note 1
and 3).............................. 83,426 -- -- -- 79 --
Investment securities sold............ 149,633 6,512,532 5,395 1,163,476 65,100 696,077
Interest and dividends................ 767,102 4,568,930 7,523 167,868 8,040 598,905
Prepaid expenses........................ 4,171 37,185 3,636 5,047 2,762 17,623
----------- ------------ ---------- ------------ ---------- ------------
TOTAL ASSETS............................ 57,367,961 856,750,009 5,477,805 109,110,642 9,248,540 337,147,619
----------- ------------ ---------- ------------ ---------- ------------
LIABILITIES:
Bank overdraft........................ -- -- -- -- -- --
Unrealized depreciation on forward
foreign currency contracts (Note 1
and 3).............................. 3,380 -- -- -- -- --
Payable upon return of securities
loaned (Note 1)..................... -- 166,693,058 -- 17,606,300 -- 39,064,911
Payable for investment securities
purchased........................... 379,237 10,767,153 -- 991,134 46,595 3,391,190
Payable for investment advisory and
management fees (Note 2)............ 41,928 260,496 3,989 55,185 6,349 154,989
Accounts payable and accrued
expenses............................ 15,805 80,568 1,446 17,735 2,826 44,727
----------- ------------ ---------- ------------ ---------- ------------
TOTAL LIABILITIES....................... 440,350 177,801,275 5,435 18,670,354 55,770 42,655,817
----------- ------------ ---------- ------------ ---------- ------------
NET ASSETS:
Net proceeds of capital stock, par
value $.01 per share-authorized
20,000,000,000 shares; **........... 50,871,728 443,113,918 5,404,788 75,767,052 8,826,114 185,911,206
Unrealized appreciation (depreciation)
of investments in securities and
other assets and liabilities
denominated in foreign currency..... 997,272 68,626,750 44,905 942,762 345,323 45,967,160
Undistributed (excess of distrubutions
over) net investment income......... 436,395 25,070,804 14,133 1,096,531 8,142 6,403,508
Accumulated net realized gain (loss)
from sale of investments and foreign
currency............................ 4,622,216 142,137,262 8,544 12,633,943 13,191 56,209,928
----------- ------------ ---------- ------------ ---------- ------------
TOTAL NET ASSETS........................ $56,927,611 $678,948,734 $5,472,370 $ 90,440,288 $9,192,770 $294,491,802
=========== ============ ========== ============ ========== ============
NET ASSET VALUE PER SHARE............... $13.49 $22.78 $10.15 $15.65 $10.49 $21.97
=========== ============ ========== ============ ========== ============
*Cost................................... $54,413,251 $610,311,554 $5,416,346 $ 89,225,189 $8,827,276 $250,802,943
**Outstanding shares.................... 4,220,322 29,807,424 539,328 5,779,302 875,941 13,405,230
<CAPTION>
S & P
500 INDEX
SERIES
-------------
<S> <C>
ASSETS:
Investments in securities, as detailed
in the accompanying schedules, at
market* (Note 1)...................... $428,840,981
Foreign currency on deposit with
custodian............................. --
Collateral for securities lending
transactions (Note 1)................. 31,825,722
Receivables:
Unrealized appreciation on forward
foreign currency contracts (Note 1
and 3).............................. --
Investment securities sold............ 877,479
Interest and dividends................ 455,309
Prepaid expenses........................ 49,383
------------
TOTAL ASSETS............................ 462,048,874
------------
LIABILITIES:
Bank overdraft........................ --
Unrealized depreciation on forward
foreign currency contracts (Note 1
and 3).............................. --
Payable upon return of securities
loaned (Note 1)..................... 31,825,722
Payable for investment securities
purchased........................... 346,969
Payable for investment advisory and
management fees (Note 2)............ 140,693
Accounts payable and accrued
expenses............................ 43,223
------------
TOTAL LIABILITIES....................... 32,356,607
------------
NET ASSETS:
Net proceeds of capital stock, par
value $.01 per share-authorized
20,000,000,000 shares; **........... 313,359,882
Unrealized appreciation (depreciation)
of investments in securities and
other assets and liabilities
denominated in foreign currency..... 101,773,179
Undistributed (excess of distrubutions
over) net investment income......... 4,811,700
Accumulated net realized gain (loss)
from sale of investments and foreign
currency............................ 9,747,506
------------
TOTAL NET ASSETS........................ $429,692,267
============
NET ASSET VALUE PER SHARE............... $22.50
============
*Cost................................... $326,967,777
**Outstanding shares.................... 19,098,957
</TABLE>
109
<PAGE>
FORTIS SERIES FUND, INC.
Statements of Assets and Liabilities (continued)
(Unaudited)
June 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BLUE CHIP BLUE CHIP INTERNATIONAL MID CAP SMALL CAP
STOCK STOCK STOCK STOCK VALUE
SERIES SERIES II SERIES SERIES SERIES
------------- ----------- ------------- ------------ ------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments in securities, as detailed
in the accompanying schedules, at
market* (Note 1).................... $305,415,570 $6,863,802 $154,758,378 $35,143,418 $41,834,379
Foreign currency on deposit with
custodian........................... -- -- -- -- --
Collateral for securities lending
transactions (Note 1)............... 43,261,120 -- -- -- --
Receivables:
Unrealized appreciation on forward
foreign currency contracts
(Note 1 and 3).................... -- -- 1,499 -- --
Investment securities sold.......... 1,184,765 52,214 124,261 2,292 125,935
Interest and dividends.............. 126,705 2,903 654,563 22,978 41,570
Prepaid expenses...................... 15,550 3,371 8,286 1,439 5,230
------------ ---------- ------------ ----------- -----------
TOTAL ASSETS............................ 350,003,710 6,922,290 155,546,987 35,170,127 42,007,114
------------ ---------- ------------ ----------- -----------
LIABILITIES:
Bank overdraft........................ -- -- 13,177 -- --
Unrealized depreciation on forward
foreign currency contracts (Note 1
and 3).............................. -- -- -- -- --
Payable upon return of securities
loaned (Note 1)..................... 43,261,120 -- -- -- --
Payable for investment securities
purchased........................... 71,855 78,169 709,602 1,178,454 354,155
Payable for investment advisory and
management fees (Note 2)............ 214,493 4,857 103,877 24,468 31,351
Accounts payable and accrued
expenses............................ 21,029 2,544 16,236 12,283 4,819
------------ ---------- ------------ ----------- -----------
TOTAL LIABILITIES....................... 43,568,497 85,570 842,892 1,215,205 390,325
------------ ---------- ------------ ----------- -----------
NET ASSETS:
Net proceeds of capital stock, par
value $.01 per share-authorized
20,000,000,000 shares; **........... 205,295,137 6,623,452 118,171,264 28,849,495 38,007,357
Unrealized appreciation (depreciation)
of investments in securities and
other assets and liabilities
denominated in foreign currency..... 84,418,874 239,294 20,095,345 811,213 369,365
Undistributed (excess of distrubutions
over) net investment income......... (133,037) 830 5,369,439 43,208 394,170
Accumulated net realized gain (loss)
from sale of investments and foreign
currency............................ 16,854,239 (26,856) 11,068,047 4,251,006 2,845,897
------------ ---------- ------------ ----------- -----------
TOTAL NET ASSETS........................ $306,435,213 $6,836,720 $154,704,095 $33,954,922 $41,616,789
============ ========== ============ =========== ===========
NET ASSET VALUE PER SHARE............... $23.46 $10.37 $17.25 $11.44 $10.55
============ ========== ============ =========== ===========
*Cost................................... $220,996,693 $6,624,508 $134,632,860 $34,328,355 $41,465,014
**Outstanding shares.................... 13,061,642 659,275 8,966,777 2,968,019 3,944,378
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
110
<PAGE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL GLOBAL LARGE CAP INVESTORS GROWTH AGGRESSIVE
GROWTH EQUITY GROWTH GROWTH STOCK GROWTH
SERIES SERIES SERIES SERIES SERIES SERIES
------------- ----------- ------------- ----------- --------------- -------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments in securities, as detailed
in the accompanying schedules, at
market* (Note 1)...................... $476,248,809 $8,465,329 $106,509,837 $8,828,162 $1,200,332,946 $428,515,689
Foreign currency on deposit with
custodian............................. -- -- -- -- -- --
Collateral for securities lending
transactions (Note 1)................. 56,000,000 -- -- -- 348,000,000 49,278,400
Receivables:
Unrealized appreciation on forward
foreign currency contracts (Note 1
and 3).............................. -- -- -- 44 -- --
Investment securities sold............ 4,959,299 33,933 2,684,953 75,752 11,237,279 9,644,193
Interest and dividends................ 649,917 10,922 40,517 4,538 353,008 73,394
Prepaid expenses........................ 18,746 3,048 12,639 2,857 41,208 17,964
------------ ---------- ------------ ---------- -------------- ------------
TOTAL ASSETS............................ 537,876,771 8,513,232 109,247,946 8,911,353 1,559,964,441 487,529,640
------------ ---------- ------------ ---------- -------------- ------------
LIABILITIES:
Bank overdraft........................ 36,784 -- -- -- -- --
Unrealized depreciation on forward
foreign currency contracts (Note 1
and 3).............................. 63,383 283 -- 62 -- --
Payable upon return of securities
loaned (Note 1)..................... 56,000,000 -- -- -- 348,000,000 49,278,400
Payable for investment securities
purchased........................... -- 96,130 322,010 115,990 26,869,174 2,500,085
Payable for investment advisory and
management fees (Note 2)............ 278,138 6,698 79,240 6,127 567,905 209,126
Accounts payable and accrued
expenses............................ 53,947 2,064 7,597 1,690 96,239 12,277
------------ ---------- ------------ ---------- -------------- ------------
TOTAL LIABILITIES....................... 56,432,252 105,175 408,847 123,869 375,533,318 51,999,888
------------ ---------- ------------ ---------- -------------- ------------
NET ASSETS:
Net proceeds of capital stock, par
value $.01 per share-authorized
20,000,000,000 shares; **........... 177,265,583 8,065,121 92,513,422 8,494,310 474,572,248 200,016,160
Unrealized appreciation (depreciation)
of investments in securities and
other assets and liabilities
denominated in foreign currency..... 237,063,970 317,139 13,482,142 462,844 414,491,488 109,520,917
Undistributed (excess of distrubutions
over) net investment income......... 3,448,547 17,298 (73,249) 4,257 (1,112,024) (416,118)
Accumulated net realized gain (loss)
from sale of investments and foreign
currency............................ 63,666,419 8,499 2,916,784 (173,927) 296,479,411 126,408,793
------------ ---------- ------------ ---------- -------------- ------------
TOTAL NET ASSETS........................ $481,444,519 $8,408,057 $108,839,099 $8,787,484 $1,184,431,123 $435,529,752
============ ========== ============ ========== ============== ============
NET ASSET VALUE PER SHARE............... $33.90 $10.45 $15.32 $10.38 $51.82 $37.86
============ ========== ============ ========== ============== ============
*Cost................................... $239,212,301 $8,148,312 $ 93,027,695 $8,365,320 $ 785,841,458 $318,994,772
**Outstanding shares.................... 14,200,053 804,573 7,105,385 846,964 22,858,792 11,504,698
</TABLE>
111
<PAGE>
FORTIS SERIES FUND, INC.
Statements of Operations
(Unaudited)
For the Six-Month Period Ended June 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY U.S. GOV'T. DIVERSIFIED MULTISECTOR HIGH
MARKET SECURITIES INCOME BOND YIELD
SERIES SERIES SERIES SERIES SERIES
----------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME (LOSS):
Income:
Interest income..................... $3,088,478 $ 4,386,262 $ 3,856,081 $ 654,444 $ 3,294,758
Dividend Income..................... -- -- -- -- 38,716
Fee income (Note 1)................. -- 14,001 5,405 -- --
---------- ----------- ----------- ----------- -----------
Total Income*......................... 3,088,478 4,400,263 3,861,486 654,444 3,333,474
---------- ----------- ----------- ----------- -----------
Expenses:
Investment advisory and management
fees (Note 2)..................... 151,338 306,801 230,812 80,763 160,968
Legal and auditing fees (Note 2).... 8,438 13,419 11,027 9,109 9,385
Custodian fees...................... 2,988 3,730 3,479 4,915 1,987
Shareholders' notices and reports... 10,893 17,817 13,619 3,804 9,035
Directors' fees and expenses........ 1,368 2,436 3,227 1,938 1,144
Other............................... 572 3,084 2,288 522 1,442
---------- ----------- ----------- ----------- -----------
Total Expenses........................ 175,597 347,287 264,452 101,051 183,961
Less reimbursable expenses........ -- -- -- -- --
---------- ----------- ----------- ----------- -----------
Net Expenses........................ 175,597 347,287 264,452 101,051 183,961
---------- ----------- ----------- ----------- -----------
NET INVESTMENT INCOME (LOSS)............ 2,912,881 4,052,976 3,597,034 553,393 3,149,513
---------- ----------- ----------- ----------- -----------
REALIZED & UNREALIZED GAIN (LOSS) ON
INVESTMENTS & FOREIGN CURRENCY
TRANSACTIONS: (NOTE 1)
Net realized gain (loss) from:
Investments......................... -- (1,592,609) (1,293,572) (562,240) (2,453,036)
Foreign currency transactions....... -- -- -- (1,425,041) --
Future contracts.................... -- -- -- -- --
---------- ----------- ----------- ----------- -----------
NET REALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS..... -- (1,592,609) (1,293,572) (1,987,281) (2,453,036)
---------- ----------- ----------- ----------- -----------
NET CHANGES IN UNREALIZED APPRECIATION
(DEPRECIATION) OF:
Investments........................... -- 2,104,447 (134,561) 461,816 (1,303,002)
Translation of assets and liabilities
denominated in foreign currency..... -- -- -- 747,045 --
---------- ----------- ----------- ----------- -----------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS......... -- 2,104,447 (134,561) 1,208,861 (1,303,002)
---------- ----------- ----------- ----------- -----------
NET GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY...................... -- 511,838 (1,428,133) (778,420) (3,756,038)
---------- ----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. $2,912,881 $ 4,564,814 $ 2,168,901 $ (225,027) $ (606,525)
========== =========== =========== =========== ===========
</TABLE>
<TABLE>
*Net of foreign witholding taxes of:
<S> <C>
Multisector Bond Series $ 3,201
Global Asset Allocation Series 29,931
Asset Allocation Series 10,311
American Leaders Series 213
Growth & Income Series 330
</TABLE>
**FOR TIME PERIOD APRIL 3, 2000 (INCEPTION) TO JUNE 30, 2000.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
112
<PAGE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL ASSET ASSET AMERICAN CAPITAL GROWTH &
ALLOCATION ALLOCATION LEADERS VALUE OPPORTUNITIES INCOME
SERIES SERIES SERIES** SERIES SERIES** SERIES
------------ -------------- -------- ------------ ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME (LOSS):
Income:
Interest income..................... $ 617,506 $ 9,594,900 $ 9,484 $ 67,768 $ 19,374 $ 851,938
Dividend Income..................... 427,294 1,344,419 18,462 599,100 7,482 2,160,692
Fee income (Note 1)................. -- 62,813 -- 6,183 -- 15,248
----------- ------------- ------- ----------- -------- ------------
Total Income*......................... 1,044,800 11,002,132 27,946 673,051 26,856 3,027,878
----------- ------------- ------- ----------- -------- ------------
Expenses:
Investment advisory and management
fees (Note 2)..................... 266,859 1,592,779 9,529 322,874 14,254 953,151
Legal and auditing fees (Note 2).... 10,544 26,593 5,208 9,978 5,208 16,868
Custodian fees...................... 14,982 18,902 1,245 5,969 1,494 8,059
Shareholders' notices and reports... 8,238 77,839 112 11,595 112 37,879
Directors' fees and expenses........ 1,094 9,351 37 1,492 37 4,925
Other............................... 1,409 12,616 89 2,131 88 6,472
----------- ------------- ------- ----------- -------- ------------
Total Expenses........................ 303,126 1,738,080 16,220 354,039 21,193 1,027,354
Less reimbursable expenses........ -- -- (2,407) -- (985) --
----------- ------------- ------- ----------- -------- ------------
Net Expenses........................ 303,126 1,738,080 13,813 354,039 20,208 1,027,354
----------- ------------- ------- ----------- -------- ------------
NET INVESTMENT INCOME (LOSS)............ 741,674 9,264,052 14,133 319,012 6,648 2,000,524
----------- ------------- ------- ----------- -------- ------------
REALIZED & UNREALIZED GAIN (LOSS) ON
INVESTMENTS & FOREIGN CURRENCY
TRANSACTIONS: (NOTE 1)
Net realized gain (loss) from:
Investments......................... 3,212,077 50,967,909 8,544 7,373,984 13,191 18,192,253
Foreign currency transactions....... (212,860) -- -- -- 1,494 --
Future contracts.................... -- -- -- -- -- --
----------- ------------- ------- ----------- -------- ------------
NET REALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS..... 2,999,217 50,967,909 8,544 7,373,984 14,685 18,192,253
----------- ------------- ------- ----------- -------- ------------
NET CHANGES IN UNREALIZED APPRECIATION
(DEPRECIATION) OF:
Investments........................... (2,143,390) (60,424,650) 44,905 (8,130,705) 345,283 (19,913,216)
Translation of assets and liabilities
denominated in foreign currency..... (434,749) -- -- -- 40 --
----------- ------------- ------- ----------- -------- ------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS......... (2,578,139) (60,424,650) 44,905 (8,130,705) 345,323 (19,913,216)
----------- ------------- ------- ----------- -------- ------------
NET GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY...................... 421,078 (9,456,741) 53,449 (756,721) 360,008 (1,720,963)
----------- ------------- ------- ----------- -------- ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. $ 1,162,752 $ (192,689) $67,582 $ (437,709) $366,656 $ 279,561
=========== ============= ======= =========== ======== ============
</TABLE>
113
<PAGE>
FORTIS SERIES FUND, INC.
Statements of Operations (continued)
(Unaudited)
For the Six-Month Period Ended June 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P BLUE CHIP BLUE CHIP INTERNATIONAL MID CAP
500 INDEX STOCK STOCK STOCK STOCK
SERIES SERIES SERIES II** SERIES SERIES
------------- ------------ ----------- ------------- -----------
<S> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME (LOSS):
Income:
Interest income..................... $ 279,270 $ 167,904 $ 10,064 $ 182,608 $ 28,973
Dividend Income..................... 2,324,827 993,171 6,240 1,569,897 164,829
Fee income (Note 1)................. 16,485 16,734 -- -- --
------------ ----------- -------- ------------ -----------
Total Income*......................... 2,620,582 1,177,809 16,304 1,752,505 193,802
------------ ----------- -------- ------------ -----------
Expenses:
Investment advisory and management
fees (Note 2)..................... 830,377 1,249,110 10,828 607,393 129,778
Legal and auditing fees (Note 2).... 15,470 13,604 5,208 10,970 7,217
Custodian fees...................... 27,765 12,990 1,245 24,899 10,020
Shareholders' notices and reports... 30,695 34,459 112 13,648 3,523
Directors' fees and expenses........ 4,698 3,564 37 1,794 298
Other............................... 12,287 4,307 136 2,162 908
------------ ----------- -------- ------------ -----------
Total Expenses........................ 921,292 1,318,034 17,566 660,866 151,744
Less reimbursable expenses........ -- -- (2,092) -- --
------------ ----------- -------- ------------ -----------
Net Expenses........................ 921,292 1,318,034 15,474 660,866 151,744
------------ ----------- -------- ------------ -----------
NET INVESTMENT INCOME (LOSS)............ 1,699,290 (140,225) 830 1,091,639 42,058
------------ ----------- -------- ------------ -----------
REALIZED & UNREALIZED GAIN (LOSS) ON
INVESTMENTS & FOREIGN CURRENCY
TRANSACTIONS: (NOTE 1)
Net realized gain (loss) from:
Investments......................... 6,551,717 11,943,399 (23,792) 8,041,029 3,456,240
Foreign currency transactions....... -- (3,125) -- (16,091) --
Future contracts.................... (1,011,063) -- (3,064) -- 77,274
------------ ----------- -------- ------------ -----------
NET REALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS..... 5,540,654 11,940,274 (26,856) 8,024,938 3,533,514
------------ ----------- -------- ------------ -----------
NET CHANGES IN UNREALIZED APPRECIATION
(DEPRECIATION) OF:
Investments........................... (10,650,151) 7,478,295 239,294 (14,392,308) (1,601,078)
Translation of assets and liabilities
denominated in foreign currency..... -- (2) -- (15,442) --
------------ ----------- -------- ------------ -----------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS......... (10,650,151) 7,478,293 239,294 (14,407,750) (1,601,078)
------------ ----------- -------- ------------ -----------
NET GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY...................... (5,109,497) 19,418,567 212,438 (6,382,812) 1,932,436
------------ ----------- -------- ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. $ (3,410,207) $19,278,342 $213,268 $ (5,291,173) $ 1,974,494
============ =========== ======== ============ ===========
</TABLE>
<TABLE>
*Net of foreign witholding taxes of:
<S> <C>
S&P 500 Index Series $ 13,166
Blue Chip Stock Series 7,363
Blue Chip Stock Series II 59
International Stock Series 134,737
Global Growth Series 36,086
Global Equity Series 478
Large Cap Growth Series 3,868
Investors Growth Series 78
</TABLE>
**FOR TIME PERIOD APRIL 3, 2000 (INCEPTION) TO JUNE 30, 2000.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
114
<PAGE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL CAP GLOBAL GLOBAL LARGE CAP INVESTORS GROWTH
VALUE GROWTH EQUITY GROWTH GROWTH STOCK
SERIES SERIES SERIES** SERIES SERIES** SERIES
----------- ------------- --------- ----------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME (LOSS):
Income:
Interest income..................... $ 59,309 $ 855,175 $ 14,770 $ 72,521 $ 16,922 $ 1,973,237
Dividend Income..................... 528,500 861,919 22,454 320,316 6,466 409,198
Fee income (Note 1)................. -- 32,611 -- -- -- 113,176
---------- ------------ -------- ---------- --------- ------------
Total Income*......................... 587,809 1,749,705 37,224 392,837 23,388 2,495,611
---------- ------------ -------- ---------- --------- ------------
Expenses:
Investment advisory and management
fees (Note 2)..................... 183,372 1,705,794 15,405 443,020 13,929 3,430,079
Legal and auditing fees (Note 2).... 7,294 19,624 5,208 8,500 5,208 31,330
Custodian fees...................... 6,286 34,795 1,867 5,807 1,494 20,894
Shareholders' notices and reports... 3,410 44,223 112 7,151 112 98,179
Directors' fees and expenses........ 423 5,372 37 836 37 11,935
Other............................... 472 7,063 89 772 88 15,218
---------- ------------ -------- ---------- --------- ------------
Total Expenses........................ 201,257 1,816,871 22,718 466,086 20,868 3,607,635
Less reimbursable expenses........ -- -- (1,485) -- (1,120) --
---------- ------------ -------- ---------- --------- ------------
Net Expenses........................ 201,257 1,816,871 21,233 466,086 19,748 3,607,635
---------- ------------ -------- ---------- --------- ------------
NET INVESTMENT INCOME (LOSS)............ 386,552 (67,166) 15,991 (73,249) 3,640 (1,112,024)
---------- ------------ -------- ---------- --------- ------------
REALIZED & UNREALIZED GAIN (LOSS) ON
INVESTMENTS & FOREIGN CURRENCY
TRANSACTIONS: (NOTE 1)
Net realized gain (loss) from:
Investments......................... 1,629,887 16,826,758 8,499 1,536,980 (173,927) 127,211,549
Foreign currency transactions....... -- (42,853) 1,307 -- 617 --
Future contracts.................... -- -- -- -- -- --
---------- ------------ -------- ---------- --------- ------------
NET REALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS..... 1,629,887 16,783,905 9,806 1,536,980 (173,310) 127,211,549
---------- ------------ -------- ---------- --------- ------------
NET CHANGES IN UNREALIZED APPRECIATION
(DEPRECIATION) OF:
Investments........................... (754,323) (29,299,586) 317,017 317,734 462,842 26,749,272
Translation of assets and liabilities
denominated in foreign currency..... -- 44,950 122 -- 2 --
---------- ------------ -------- ---------- --------- ------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS......... (754,323) (29,254,636) 317,139 317,734 462,844 26,749,272
---------- ------------ -------- ---------- --------- ------------
NET GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY...................... 875,564 (12,470,731) 326,945 1,854,714 289,534 153,960,821
---------- ------------ -------- ---------- --------- ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. $1,262,116 $(12,537,897) $342,936 $1,781,465 $ 293,174 $152,848,797
========== ============ ======== ========== ========= ============
<CAPTION>
AGGRESSIVE
GROWTH
SERIES
------------
<S> <C>
NET INVESTMENT INCOME (LOSS):
Income:
Interest income..................... $ 614,066
Dividend Income..................... 202,123
Fee income (Note 1)................. 92,919
-----------
Total Income*......................... 909,108
-----------
Expenses:
Investment advisory and management
fees (Note 2)..................... 1,269,324
Legal and auditing fees (Note 2).... 11,932
Custodian fees...................... 15,870
Shareholders' notices and reports... 22,177
Directors' fees and expenses........ 2,592
Other............................... 3,331
-----------
Total Expenses........................ 1,325,226
Less reimbursable expenses........ --
-----------
Net Expenses........................ 1,325,226
-----------
NET INVESTMENT INCOME (LOSS)............ (416,118)
-----------
REALIZED & UNREALIZED GAIN (LOSS) ON
INVESTMENTS & FOREIGN CURRENCY
TRANSACTIONS: (NOTE 1)
Net realized gain (loss) from:
Investments......................... 44,374,826
Foreign currency transactions....... --
Future contracts.................... --
-----------
NET REALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS..... 44,374,826
-----------
NET CHANGES IN UNREALIZED APPRECIATION
(DEPRECIATION) OF:
Investments........................... (8,674,035)
Translation of assets and liabilities
denominated in foreign currency..... --
-----------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS......... (8,674,035)
-----------
NET GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY...................... 35,700,791
-----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. $35,284,673
===========
</TABLE>
115
<PAGE>
FORTIS SERIES FUND, INC.
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
U.S. GOVERNMENT
MONEY MARKET SERIES SECURITIES SERIES
---------------------------------------------------------------------------------------------
FOR THE FOR THE
SIX-MONTH SIX-MONTH
PERIOD ENDED FOR THE PERIOD ENDED FOR THE
JUNE 30, 2000 YEAR ENDED JUNE 30, 2000 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1999 (UNAUDITED) DECEMBER 31, 1999
------------- ----------------- ------------- -----------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment
income............... $ 2,912,881 $ 4,467,066 $ 4,052,976 $ 8,331,000
Net realized gain
(loss) on investments
and foreign currency
transactions......... -- -- (1,592,609) (2,701,403)
Net change in
unrealized
appreciation
(depreciation) on
investments and
foreign currency..... -- -- 2,104,447 (8,562,127)
------------- ------------ ------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 2,912,881 4,467,066 4,564,814 (2,932,530)
------------- ------------ ------------ ------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income............... -- (3,352,892) -- (7,970,078)
From net realized gains
on investments....... -- -- -- --
------------- ------------ ------------ ------------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS........... -- (3,352,892) -- (7,970,078)
------------- ------------ ------------ ------------
CAPITAL STOCK SOLD AND
REPURCHASED: (NOTE 5)
Proceeds from sale of
shares............... 81,474,998 123,316,203 5,262,015 14,558,760
Proceeds from shares
issued as a result of
reinvested
dividends............ -- 3,352,892 -- 7,970,078
Less cost of
repurchase........... (119,195,741) (80,775,789) (20,301,182) (25,640,605)
------------- ------------ ------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM
SHARES TRANSACTIONS.... (37,720,743) 45,893,306 (15,039,167) (3,111,767)
------------- ------------ ------------ ------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS.......... (34,807,862) 47,007,480 (10,474,353) (14,014,375)
NET ASSETS:
Beginning of period.... 124,104,615 77,097,135 138,657,928 152,672,303
------------- ------------ ------------ ------------
End of period
(Note 4)............. $ 89,296,753 $124,104,615 $128,183,575 $138,657,928
------------- ------------ ------------ ------------
</TABLE>
<TABLE>
<CAPTION>
AMERICAN
LEADERS
ASSET ALLOCATION SERIES SERIES
-------------------------------------------------------------------------------
FOR THE FOR THE PERIOD
SIX-MONTH APRIL 3, 2000
PERIOD ENDED FOR THE (INCEPTION) TO
JUNE 30, 2000 YEAR ENDED JUNE 30, 2000
(UNAUDITED) DECEMBER 31, 1999 (UNAUDITED)
------------- ----------------- --------------
<S> <C> <C> <C>
OPERATIONS:
Net investment
income............... $ 9,264,052 $ 15,807,679 $ 14,133
Net realized gain
(loss) on investments
and foreign currency
transactions......... 50,967,909 91,173,105 8,544
Net change in
unrealized
appreciation
(depreciation) on
investments and
foreign currency..... (60,424,650) 5,530,133 44,905
------------ ------------ ----------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ (192,689) 112,510,917 67,582
------------ ------------ ----------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income............... -- (13,724,526) --
From net realized gains
on investments....... -- (45,255,570) --
------------ ------------ ----------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS........... -- (58,980,096) --
------------ ------------ ----------
CAPITAL STOCK SOLD AND
REPURCHASED: (NOTE 5)
Proceeds from sale of
shares............... 21,077,051 37,098,520 5,406,516
Proceeds from shares
issued as a result of
reinvested
dividends............ -- 58,980,096 --
Less cost of
repurchase........... (21,892,340) (63,530,595) (1,728)
------------ ------------ ----------
NET INCREASE (DECREASE)
IN NET ASSETS FROM
SHARES TRANSACTIONS.... (815,289) 32,548,021 5,404,788
------------ ------------ ----------
TOTAL INCREASE (DECREASE)
IN NET ASSETS.......... (1,007,978) 86,078,842 5,472,370
NET ASSETS:
Beginning of period.... 679,956,712 593,877,870 --
------------ ------------ ----------
End of period
(Note 4)............. $678,948,734 $679,956,712 $5,472,370
------------ ------------ ----------
</TABLE>
116
<PAGE>
<TABLE>
<CAPTION>
DIVERSIFIED INCOME SERIES MULTISECTOR BOND SERIES HIGH YIELD SERIES
---------------------------------------------------------------------------------------------------------------------------
FOR THE FOR THE FOR THE
SIX-MONTH SIX-MONTH SIX-MONTH
PERIOD ENDED FOR THE PERIOD ENDED FOR THE PERIOD ENDED FOR THE
JUNE 30, 2000 YEAR ENDED JUNE 30, 2000 YEAR ENDED JUNE 30, 2000 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1999 (UNAUDITED) DECEMBER 31, 1999 (UNAUDITED) DECEMBER 31, 1999
------------- ----------------- ------------- ----------------- ------------- -----------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment
income............... $ 3,597,034 $ 7,439,764 $ 553,393 $ 979,535 $ 3,149,513 $ 6,530,666
Net realized gain
(loss) on investments
and foreign currency
transactions......... (1,293,572) (2,835,772) (1,987,281) (272,898) (2,453,036) (9,316,276)
Net change in
unrealized
appreciation
(depreciation) on
investments and
foreign currency..... (134,561) (6,518,809) 1,208,861 (2,669,621) (1,303,002) 3,551,263
------------ ------------ ----------- ----------- ----------- -----------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 2,168,901 (1,914,817) (225,027) (1,962,984) (606,525) 765,653
------------ ------------ ----------- ----------- ----------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income............... -- (7,230,117) -- (848,100) -- (6,362,707)
From net realized gains
on investments....... -- -- -- (190,104) -- --
------------ ------------ ----------- ----------- ----------- -----------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS........... -- (7,230,117) -- (1,038,204) -- (6,362,707)
------------ ------------ ----------- ----------- ----------- -----------
CAPITAL STOCK SOLD AND
REPURCHASED: (NOTE 5)
Proceeds from sale of
shares............... 3,849,536 8,203,478 2,653,085 7,725,482 3,919,474 9,174,964
Proceeds from shares
issued as a result of
reinvested
dividends............ -- 7,230,117 -- 1,038,204 -- 6,362,707
Less cost of
repurchase........... (12,553,248) (20,317,888) (7,287,963) (5,496,119) (8,530,135) (12,757,216)
------------ ------------ ----------- ----------- ----------- -----------
NET INCREASE (DECREASE)
IN NET ASSETS FROM
SHARES TRANSACTIONS.... (8,703,712) (4,884,293) (4,634,878) 3,267,567 (4,610,661) 2,780,455
------------ ------------ ----------- ----------- ----------- -----------
TOTAL INCREASE (DECREASE)
IN NET ASSETS.......... (6,534,811) (14,029,227) (4,859,905) 266,379 (5,217,186) (2,816,599)
NET ASSETS:
Beginning of period.... 101,153,150 115,182,377 24,925,576 24,659,197 68,166,099 70,982,698
------------ ------------ ----------- ----------- ----------- -----------
End of period
(Note 4)............. $ 94,618,339 $101,153,150 $20,065,671 $24,925,576 $62,948,913 $68,166,099
------------ ------------ ----------- ----------- ----------- -----------
<CAPTION>
GLOBAL ASSET
ALLOCATION SERIES
------------------------------------------------------------
FOR THE
SIX-MONTH
PERIOD ENDED FOR THE
JUNE 30, 2000 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1999
--------------------------------------- ------------------
<S> <C> <C>
OPERATIONS:
Net investment
income............... $ 741,674 $ 1,541,177
Net realized gain
(loss) on investments
and foreign currency
transactions......... 2,999,217 3,322,091
Net change in
unrealized
appreciation
(depreciation) on
investments and
foreign currency..... (2,578,139) (5,434,980)
------------ -----------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 1,162,752 (571,712)
------------ -----------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income............... -- (1,140,332)
From net realized gains
on investments....... -- (3,771,667)
------------ -----------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS........... -- (4,911,999)
------------ -----------
CAPITAL STOCK SOLD AND
REPURCHASED: (NOTE 5)
Proceeds from sale of
shares............... 2,954,453 6,913,214
Proceeds from shares
issued as a result of
reinvested
dividends............ -- 4,911,999
Less cost of
repurchase........... (13,256,292) (9,361,059)
------------ -----------
NET INCREASE (DECREASE)
IN NET ASSETS FROM
SHARES TRANSACTIONS.... (10,301,839) 2,464,154
------------ -----------
TOTAL INCREASE (DECREASE)
IN NET ASSETS.......... (9,139,087) (3,019,557)
NET ASSETS:
Beginning of period.... 66,066,698 69,086,255
------------ -----------
End of period
(Note 4)............. $ 56,927,611 $66,066,698
------------ -----------
</TABLE>
<TABLE>
<CAPTION>
CAPITAL
OPPORTUNITIES
VALUE SERIES SERIES GROWTH & INCOME SERIES
---------------------------------------------------------------------------------------------------------------------
FOR THE FOR THE PERIOD FOR THE
SIX-MONTH APRIL 3, 2000 SIX-MONTH
PERIOD ENDED FOR THE (INCEPTION) TO PERIOD ENDED FOR THE
JUNE 30, 2000 YEAR ENDED JUNE 30, 2000 JUNE 30, 2000 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1999 (UNAUDITED) (UNAUDITED) DECEMBER 31, 1999
-------------------------------- -------------- ------------- -----------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment
income............... $ 319,012 $ 777,950 $ 6,648 $ 2,000,524 $ 4,404,031
Net realized gain
(loss) on investments
and foreign currency
transactions......... 7,373,984 6,011,807 14,685 18,192,253 38,018,834
Net change in
unrealized
appreciation
(depreciation) on
investments and
foreign currency..... (8,130,705) 823,492 345,323 (19,913,216) (10,859,212)
------------ ------------ ---------- ------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ (437,709) 7,613,249 366,656 279,561 31,563,653
------------ ------------ ---------- ------------ ------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income............... -- (9,862) -- -- (7,014,251)
From net realized gains
on investments....... -- (58,557) -- -- (13,057,923)
------------ ------------ ---------- ------------ ------------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS........... -- (68,419) -- -- (20,072,174)
------------ ------------ ---------- ------------ ------------
CAPITAL STOCK SOLD AND
REPURCHASED: (NOTE 5)
Proceeds from sale of
shares............... 7,821,758 9,921,251 8,832,636 6,050,174 13,270,103
Proceeds from shares
issued as a result of
reinvested
dividends............ -- 68,419 -- -- 20,072,174
Less cost of
repurchase........... (11,526,893) (10,555,761) (6,522) (29,023,678) (40,587,501)
------------ ------------ ---------- ------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM
SHARES TRANSACTIONS.... (3,705,135) (566,091) 8,826,114 (22,973,504) (7,245,224)
------------ ------------ ---------- ------------ ------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS.......... (4,142,844) 6,978,739 9,192,770 (22,693,943) 4,246,255
NET ASSETS:
Beginning of period.... 94,583,132 87,604,393 -- 317,185,745 312,939,490
------------ ------------ ---------- ------------ ------------
End of period
(Note 4)............. $ 90,440,288 $ 94,583,132 $9,192,770 $294,491,802 $317,185,745
------------ ------------ ---------- ------------ ------------
<CAPTION>
S & P 500
INDEX SERIES
---------------------------------
FOR THE
SIX-MONTH
PERIOD ENDED FOR THE
JUNE 30, 2000 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1999
------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment
income............... $ 1,699,290 $ 3,112,964
Net realized gain
(loss) on investments
and foreign currency
transactions......... 5,540,654 4,436,694
Net change in
unrealized
appreciation
(depreciation) on
investments and
foreign currency..... (10,650,151) 56,694,432
------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ (3,410,207) 64,244,090
------------ ------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income............... -- (21,459)
From net realized gains
on investments....... -- (39,341)
------------ ------------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS........... -- (60,800)
------------ ------------
CAPITAL STOCK SOLD AND
REPURCHASED: (NOTE 5)
Proceeds from sale of
shares............... 53,076,042 149,288,394
Proceeds from shares
issued as a result of
reinvested
dividends............ -- 60,800
Less cost of
repurchase........... (44,746,957) (41,591,071)
------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM
SHARES TRANSACTIONS.... 8,329,085 107,758,123
------------ ------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS.......... 4,918,878 171,941,413
NET ASSETS:
Beginning of period.... 424,773,389 252,831,976
------------ ------------
End of period
(Note 4)............. $429,692,267 $424,773,389
------------ ------------
</TABLE>
117
<PAGE>
FORTIS SERIES FUND, INC.
Statements of Changes in Net Assets (continued)
<TABLE>
<CAPTION>
BLUE CHIP
STOCK
BLUE CHIP STOCK SERIES SERIES II
-------------------------------------------------------------------------------
FOR THE FOR THE PERIOD
SIX-MONTH APRIL 3, 2000
PERIOD ENDED FOR THE (INCEPTION) TO
JUNE 30, 2000 YEAR ENDED JUNE 30, 2000
(UNAUDITED) DECEMBER 31, 1999 (UNAUDITED)
------------- ----------------- --------------
<S> <C> <C> <C>
OPERATIONS:
Net investment
income............... $ (140,225) $ 222,407 $ 830
Net realized gain
(loss) on investments
and foreign currency
transactions......... 11,940,274 9,055,543 (26,856)
Net change in
unrealized
appreciation
(depreciation) on
investments and
foreign currency..... 7,478,293 35,138,572 239,294
------------ ------------ ----------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 19,278,342 44,416,522 213,268
------------ ------------ ----------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income............... -- (220,698) --
From net realized gains
on investments....... -- (3,844,293) --
------------ ------------ ----------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS........... -- (4,064,991) --
------------ ------------ ----------
CAPITAL STOCK SOLD AND
REPURCHASED: (NOTE 5)
Proceeds from sale of
shares............... 22,558,518 64,900,685 6,663,455
Proceeds from shares
issued as a result of
reinvested
dividends............ -- 4,064,991 --
Less cost of
repurchase........... (19,630,916) (8,009,329) (40,003)
------------ ------------ ----------
NET INCREASE (DECREASE)
IN NET ASSETS FROM
SHARES TRANSACTIONS.... 2,927,602 60,956,347 6,623,452
------------ ------------ ----------
TOTAL INCREASE (DECREASE)
IN NET ASSETS.......... 22,205,944 101,307,878 6,836,720
NET ASSETS:
Beginning of period.... 284,229,269 182,921,391 --
------------ ------------ ----------
End of period
(Note 4)............. $306,435,213 $284,229,269 $6,836,720
------------ ------------ ----------
</TABLE>
<TABLE>
<CAPTION>
GLOBAL
EQUITY
SERIES LARGE CAP GROWTH SERIES
-------------------------------------------------------------------------------
FOR THE PERIOD FOR THE
APRIL 3, 2000 SIX-MONTH
(INCEPTION) TO PERIOD ENDED FOR THE
JUNE 30, 2000 JUNE 30, 2000 YEAR ENDED
(UNAUDITED) (UNAUDITED) DECEMBER 31, 1999
-------------- ------------- -----------------
<S> <C> <C> <C>
OPERATIONS:
Net investment
income............... $ 15,991 $ (73,249) $ (45,696)
Net realized gain
(loss) on investments
and foreign currency
transactions......... 9,806 1,536,980 3,223,783
Net change in
unrealized
appreciation
(depreciation) on
investments and
foreign currency..... 317,139 317,734 9,918,613
---------- ------------ -----------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 342,936 1,781,465 13,096,700
---------- ------------ -----------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income............... -- -- (1,268)
From net realized gains
on investments....... -- -- (1,404,394)
---------- ------------ -----------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS........... -- -- (1,405,662)
---------- ------------ -----------
CAPITAL STOCK SOLD AND
REPURCHASED: (NOTE 5)
Proceeds from sale of
shares............... 8,524,898 32,444,362 56,576,189
Proceeds from shares
issued as a result of
reinvested
dividends............ -- -- 1,405,662
Less cost of
repurchase........... (459,777) (12,447,752) (1,732,595)
---------- ------------ -----------
NET INCREASE (DECREASE)
IN NET ASSETS FROM
SHARES TRANSACTIONS.... 8,065,121 19,996,610 56,249,256
---------- ------------ -----------
TOTAL INCREASE (DECREASE)
IN NET ASSETS.......... 8,408,057 21,778,075 67,940,294
NET ASSETS:
Beginning of period.... -- 87,061,024 19,120,730
---------- ------------ -----------
End of period
(Note 4)............. $8,408,057 $108,839,099 $87,061,024
---------- ------------ -----------
</TABLE>
118
<PAGE>
<TABLE>
<CAPTION>
INTERNATIONAL STOCK SERIES MID CAP STOCK SERIES SMALL CAP VALUE SERIES
----------------------------------------------------------------------------------------------------------------------------
FOR THE FOR THE FOR THE
SIX-MONTH SIX-MONTH SIX-MONTH
PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED FOR THE
JUNE 30, 2000 YEAR ENDED JUNE 30, 2000 YEAR ENDED JUNE 30, 2000 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1999 (UNAUDITED) DECEMBER 31, 1999 (UNAUDITED) DECEMBER 31, 1999
------------- ----------------- ------------- ----------------- ------------- -----------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment
income............... $ 1,091,639 $ 1,468,850 $ 42,058 $ 26,907 $ 386,552 $ 434,254
Net realized gain
(loss) on investments
and foreign currency
transactions......... 8,024,938 6,733,223 3,533,514 1,082,979 1,629,887 2,175,194
Net change in
unrealized
appreciation
(depreciation) on
investments and
foreign currency..... (14,407,750) 18,409,223 (1,601,078) 1,449,522 (754,323) 1,395,459
------------ ------------ ----------- ----------- ----------- -----------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ (5,291,173) 26,611,296 1,974,494 2,559,408 1,262,116 4,004,907
------------ ------------ ----------- ----------- ----------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income............... -- (96,791) -- (25,757) -- (427,926)
From net realized gains
on investments....... -- (61,734) -- -- -- (1,273,708)
------------ ------------ ----------- ----------- ----------- -----------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS........... -- (158,525) -- (25,757) -- (1,701,634)
------------ ------------ ----------- ----------- ----------- -----------
CAPITAL STOCK SOLD AND
REPURCHASED: (NOTE 5)
Proceeds from sale of
shares............... 22,500,690 31,597,091 8,498,588 10,685,974 7,996,874 21,473,557
Proceeds from shares
issued as a result of
reinvested
dividends............ -- 158,525 -- 25,757 -- 1,701,634
Less cost of
repurchase........... (6,474,449) (17,294,891) (1,317,667) (1,441,062) (6,812,791) (2,811,337)
------------ ------------ ----------- ----------- ----------- -----------
NET INCREASE (DECREASE)
IN NET ASSETS FROM
SHARES TRANSACTIONS.... 16,026,241 14,460,725 7,180,921 9,270,669 1,184,083 20,363,854
------------ ------------ ----------- ----------- ----------- -----------
TOTAL INCREASE (DECREASE)
IN NET ASSETS.......... 10,735,068 40,913,496 9,155,415 11,804,320 2,446,199 22,667,127
NET ASSETS:
Beginning of period.... 143,969,027 103,055,531 24,799,507 12,995,187 39,170,590 16,503,463
------------ ------------ ----------- ----------- ----------- -----------
End of period
(Note 4)............. $154,704,095 $143,969,027 $33,954,922 $24,799,507 $41,616,789 $39,170,590
------------ ------------ ----------- ----------- ----------- -----------
<CAPTION>
GLOBAL GROWTH SERIES
---------------------------------------------------------
FOR THE
SIX-MONTH
PERIOD ENDED FOR THE
JUNE 30, 2000 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1999
--------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment
income............... $ (67,166) $ (19,444)
Net realized gain
(loss) on investments
and foreign currency
transactions......... 16,783,905 50,459,629
Net change in
unrealized
appreciation
(depreciation) on
investments and
foreign currency..... (29,254,636) 126,235,538
------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ (12,537,897) 176,675,723
------------ ------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income............... -- (417,907)
From net realized gains
on investments....... -- (8,202,447)
------------ ------------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS........... -- (8,620,354)
------------ ------------
CAPITAL STOCK SOLD AND
REPURCHASED: (NOTE 5)
Proceeds from sale of
shares............... 57,695,083 20,006,821
Proceeds from shares
issued as a result of
reinvested
dividends............ -- 8,620,354
Less cost of
repurchase........... (37,892,968) (73,978,397)
------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM
SHARES TRANSACTIONS.... 19,802,115 (45,351,222)
------------ ------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS.......... 7,264,218 122,704,147
NET ASSETS:
Beginning of period.... 474,180,301 351,476,154
------------ ------------
End of period
(Note 4)............. $481,444,519 $474,180,301
------------ ------------
</TABLE>
<TABLE>
<CAPTION>
INVESTORS
GROWTH
SERIES GROWTH STOCK SERIES AGGRESSIVE GROWTH SERIES
-------------------------------------------------------------------------------------------------------------------
FOR THE PERIOD FOR THE FOR THE
APRIL 3, 2000 SIX-MONTH SIX-MONTH
(INCEPTION) TO PERIOD ENDED FOR THE PERIOD ENDED FOR THE
JUNE 30, 2000 JUNE 30, 2000 YEAR ENDED JUNE 30, 2000 YEAR ENDED
(UNAUDITED) (UNAUDITED) DECEMBER 31, 1999 (UNAUDITED) DECEMBER 31, 1999
-------------- --------------- ----------------- ------------- -----------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment
income............... $ 3,640 $ (1,112,024) $ (1,419,744) $ (416,118) $ (411,933)
Net realized gain
(loss) on investments
and foreign currency
transactions......... (173,310) 127,211,549 171,292,228 44,374,826 82,466,554
Net change in
unrealized
appreciation
(depreciation) on
investments and
foreign currency..... 462,844 26,749,272 207,427,522 (8,674,035) 85,867,903
---------- -------------- -------------- ------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 293,174 152,848,797 377,300,006 35,284,673 167,922,524
---------- -------------- -------------- ------------ ------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income............... -- -- (1,520,916) -- (74,969)
From net realized gains
on investments....... -- -- (224,015,952) -- (6,458,262)
---------- -------------- -------------- ------------ ------------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS........... -- -- (225,536,868) -- (6,533,231)
---------- -------------- -------------- ------------ ------------
CAPITAL STOCK SOLD AND
REPURCHASED: (NOTE 5)
Proceeds from sale of
shares............... 8,518,997 27,322,979 18,122,493 98,191,734 37,442,118
Proceeds from shares
issued as a result of
reinvested
dividends............ -- -- 225,536,868 -- 6,533,231
Less cost of
repurchase........... (24,687) (40,468,647) (113,048,272) (31,104,594) (22,066,381)
---------- -------------- -------------- ------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM
SHARES TRANSACTIONS.... 8,494,310 (13,145,668) 130,611,089 67,087,140 21,908,968
---------- -------------- -------------- ------------ ------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS.......... 8,787,484 139,703,129 282,374,227 102,371,813 183,298,261
NET ASSETS:
Beginning of period.... -- 1,044,727,994 762,353,767 333,157,939 149,859,678
---------- -------------- -------------- ------------ ------------
End of period
(Note 4)............. $8,787,484 $1,184,431,123 $1,044,727,994 $435,529,752 $333,157,939
---------- -------------- -------------- ------------ ------------
</TABLE>
119
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements
(Unaudited)
--------------------------------------------------------------------------------
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: The Series is an open-end
management investment company which currently is comprised of twenty-three
separate diversified investment portfolios and series of capital stock: Money
Market Series, U.S. Government Securities Series, Diversified Income Series,
Multisector Bond Series, High Yield Series, Global Asset Allocation Series,
Asset Allocation Series, American Leaders Series, Value Series, Capital
Opportunities Series, Growth & Income Series, S & P 500 Index Series, Blue
Chip Stock Series, Blue Chip Stock Series II, International Stock Series, Mid
Cap Stock Series, Small Cap Value Series, Global Growth Series, Global Equity
Series, Large Cap Growth Series, Investors Growth Series, Growth Stock Series
and Aggressive Growth Series. 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 "Multisector Bond Series" are 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 objective of the "American Leaders Series" is long-term growth of
capital and current income by investing in equity securities of blue chip
companies.
- 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 objective of the "Capital Opportunities Series" is capital
appreciation. The Series invests primarily in common stocks and equity
related securities, such as preferred stocks, convertible securities and
depository receipts.
- 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 primary objective of the "Blue chip Stock Series II" is long-term
growth of capital with a secondary objective of current income. The Series
invests primarily in common stocks of blue chip companies.
- 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 "Global Equity Series" is capital appreciation. The
Series invests primarily in common stocks and equity related securities of
U.S. and foreign issuers (including emerging 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.
120
<PAGE>
--------------------------------------------------------------------------------
- The objective of the "Investors Growth Series" is to provide long-term
growth of capital and future income rather than current income. The Series
invests primarily in common stocks and securities convertible into common
stocks.
- 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 with earnings and growth potential
exceeding industry average.
- The objective of the "Aggressive Growth Series" is maximum long-term
capital appreciation by investing primarily in equity securities of small
and medium sized companies that are early in their life cycles, but which
have the potential to become major enterprises, and of more established
companies that have the potential for above-average capital growth.
The Articles of Incorporation of Fortis Series Fund, Inc., permits the Board
of Directors to create additional portfolios in the future.
Shares of the Fund will not be sold directly to the public, but sold only to
Fortis Benefits Insurance Company or First Fortis Life separate accounts in
connection with variable insurance contracts and policies.
The inception of American Leaders Series, Capital Opportunities Series, Blue
Chip stock Series II, Global Equity Series and Investors Growth Series was
April 3, 2000, and the commencement of operations was May 1, 2000.
Multisector Bond Series, formerly known as Global Bond Series, changed its
investment objective in conjunction with a change in sub-adviser. As Global
Bond Series, the Series invested principally in high quality U.S. and foreign
government and corporate fixed income securities. The new objective of the
Series is to invest in U.S. and foreign government obligations and fixed rate
corporate debt including investment and non-investment grade bonds. The
Series' sub-adviser changed from Mercury Asset Management International Ltd.,
to AIM Capital Management, Inc. as of March 15, 2000.
Effective September 1, 2000, Global Asset Allocation Series will change
sub-adviser and fund investment objective. The Series' new name will be T.
Rowe Price International Equity Series. The current investment objective of
the Series is to maximize total return, to be derived primarily from capital
appreciation, dividends and interest, by following a flexible asset
allocation strategy investing in global securities. The new investment
objective will be long-term growth of capital through investments primarily
in the common stocks of well established, non-U.S. companies and diversified
broadly among developed and emerging countries. The Series' sub-adviser will
change from Morgan Stanley Asset Management Ltd., to T. Rowe Price
Associates, Inc.
The significant accounting policies followed by the Portfolios are summarized
as follows:
SECURITY VALUATION: Investments in securities traded on a national securities
exchange or on the NASDAQ National Market System are valued at the last
reported sales price. Securities for which over-the-counter market quotations
are readily available are valued on the basis of the last current bid price.
An outside pricing service may be utilized to provide such valuations. For
fixed income securities, the pricing service may employ electronic data
processing techniques and/or a matrix system to determine valuations using
methods which include consideration of yields or prices of bonds of
comparable quality, type of issue, coupon, maturity and rating indications as
to value from dealers, and general market conditions. Securities for which
quotations are not readily available are valued at fair value as determined
in good faith by management under supervision of the Board of Directors.
Short-term investments, with maturities of less than 60 days when acquired,
or which subsequently are within 60 days of maturity, are valued at amortized
cost.
SECURITIES PURCHASED ON A WHEN-ISSUED BASIS: Delivery and payment for
securities that have been purchased by all portfolios except for Money Market
Series and Growth Stock Series on a forward commitment or when-issued basis
can take place a month or more after the transaction date. During this
period, such securities are subject to market fluctuation and the portfolio
maintains, in a segregated account with its custodian, assets with a market
value equal to the amount of its purchase commitments. As of June 30, 2000,
U.S. Government Securities Series and Asset Allocation Series entered into
outstanding when-issued or forward commitments of $14,318,813 and $3,860,625
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 closing rate of exchange.
Foreign currency amounts related to the purchase or sale of securities,
income and expenses are translated at the exchange rate on the transaction
date. The effect of changes in foreign exchange rates on realized and
unrealized security gains or losses is reflected as a component of such gains
or losses. In the statement of operations, net realized gains or losses from
foreign currency transactions may arise from sales of foreign currency,
closed forward contracts, exchange gains or losses realized between the trade
date and settlement date on security transactions, and other translation
gains or losses on dividends, interest income and foreign withholding taxes.
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
121
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (continued)
(Unaudited)
--------------------------------------------------------------------------------
currency exchange rates from an independent pricing service. The Portfolio is
subject to the credit risk that the other party will not complete the
obligations of the contract.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME: Security transactions
are accounted for on the trade date, and dividend income is recorded on the
ex-dividend date for all funds or upon receipt of ex-dividend notification in
the case of certain foreign securities. Interest income is recorded on the
accrual basis. Realized security gains and losses are determined using the
identified cost method. Each Portfolio amortizes bond premium, market
discount and original issue discount. For the six-month period ended June 30,
2000, the cost of purchases and proceeds from sales of securities for Money
Market Series were $446,103,306 and $480,904,324, 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 ........... $ 99,846,390 $100,099,107
Diversified Income Series ................... 21,424,070 30,349,520
Multisector Bond Series ..................... 46,222,569 48,962,630
High Yield Series ........................... 24,080,004 23,935,787
Global Asset Allocation Series .............. 17,536,116 26,361,601
Asset Allocation Series ..................... 445,583,687 443,659,181
American Leaders Series ..................... 5,384,432 328,530
Value Series ................................ 94,907,788 100,629,941
Capital Opportunities Series ................ 8,952,812 1,243,223
Growth & Income Series ...................... 151,227,583 154,409,443
S & P 500 Index Series ...................... 22,352,235 16,476,674
Blue Chip Stock Series ...................... 83,122,844 79,070,389
Blue Chip Stock Series II.................... 6,195,930 150,174
International Stock Series .................. 54,292,482 39,306,256
Mid Cap Stock Series ........................ 22,252,797 14,710,074
Small Cap Value Series ...................... 21,495,738 21,575,381
Global Growth Series ........................ 59,823,469 56,923,203
Global Equity Series ........................ 8,323,656 538,132
Large Cap Growth Series ..................... 51,959,560 32,569,767
Investors Growth Series ..................... 10,306,560 2,591,087
Growth Stock Series ......................... 609,145,390 671,253,471
Aggressive Growth Series .................... 419,626,086 353,316,777
</TABLE>
LENDING OF PORTFOLIO SECURITIES: At June 30, 2000, 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.
Value of securities on loan and fee income from securities lending was as
follows for the six-month period ended June 30, 2000:
<TABLE>
<CAPTION>
Securities
On Loan Collateral Fee Income
<S> <C> <C> <C>
U.S. Government Securities Series ........... $ 29,907,783 $ 30,763,112 $ 14,001
Diversified Income Series ................... 11,424,919 12,000,000 5,405
Asset Allocation Series ..................... 162,791,799 166,693,058 62,813
Value Series ................................ 16,833,172 17,606,300 6,183
Growth & Income Series ...................... 38,141,857 39,064,911 15,248
S&P 500 Index Series ........................ 31,329,577 31,825,722 16,485
Blue Chip Stock Series ...................... 43,055,745 43,261,120 16,734
Global Growth Series ........................ 55,170,875 56,000,000 32,611
Growth Stock Series ......................... 344,988,344 348,000,000 113,176
Aggressive Growth Series .................... 49,072,549 49,278,400 92,919
</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. On a calendar year basis, the Portfolios intend to distribute
substantially all of their net investment income and realized gains, if any,
to avoid the payment of federal excise taxes.
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>
Multisector Bond Series ..................... $1,425,041 $(1,425,041) $ --
Global Asset Allocation Series .............. 212,860 (212,860) --
Capital Opportunities Series ................ (1,494) 1,494 --
Blue Chip Stock Series ...................... 3,125 (3,125) --
International Stock Series .................. 16,091 (16,091) --
Global Growth Series ........................ 42,853 (42,853) --
Global Equity Series ........................ (1,307) 1,307 --
Investors Growth Series ..................... (617) 617 --
</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 2006. It is
122
<PAGE>
--------------------------------------------------------------------------------
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
Multisector Bond Series ..................... 610,193
High Yield Series ........................... 10,900,636
</TABLE>
ILLIQUID SECURITIES: At June 30, 2000, 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%; Multisector Bond Series, High Yield
Series, Global Asset Allocation Series, Value Series, Growth and Income
Series, S&P 500 Index Series, Blue Chip Stock Series, International Stock
Series, Mid Cap Stock Series, Small Cap Value Series, Large Cap Growth Series
and Aggressive Growth Series to 15%, of total net assets, at market value, at
date of purchase. The aggregate values of such securities at June 30, 2000,
were as follows:
<TABLE>
<CAPTION>
Market Value of Percentage of
Illiquid Securities Total Net Assets
<S> <C> <C>
Money Market Series ......................... $4,289,147 4.80%
Diversified Income Series ................... 1,793,984 1.90%
Multisector Bond Series ..................... 1,038,759 5.18%
High Yield Series ........................... 5,407,776 8.59%
Global Asset Allocation Series .............. 642,951 1.13%
Asset Allocation Series ..................... 7,763,940 1.14%
Blue Chip Stock Series ...................... 1,049,750 0.34%
Global Growth Series ........................ 2,649,398 0.55%
</TABLE>
Pursuant to guidelines adopted by the Board of Directors, certain
unregistered securities are determined to be liquid and are not included
within the percent limitations specified above.
INCOME AND CAPITAL GAINS DISTRIBUTIONS: The portfolios intend to make income
and capital gains distributions, if any, on an annual basis. All
distributions will be reinvested in additional shares of the portfolio at net
asset value.
USE OF ESTIMATES: The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date
of the financial statements and the reported amounts of increase and decrease
in net assets from operations during the reporting period. Actual results
could differ from those estimates.
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 six month period ended June 30, 2000.
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 June 30, 2000, 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 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%
Multisector 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%
</TABLE>
123
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (continued)
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Annual
Investment Advisory
Series and Management Fee
<S> <C> <C>
American Leaders Series For the first $35 million .90%
For the next $65 million .75%
For assets over $100 million .65%
Value Series For the first $100 million .70%
For assets over $100 million .60%
Capital Opportunities Series For the first $200 million .90%
For the next $300 million .85%
For assets over $500 million .80%
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%
Blue Chip Stock Series II For the first $200 million .95%
For assets over $200 million .90%
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%
Global Equity Series For the first $200 million 1.00%
For the next $300 million .95%
For assets over $500 million .90%
Large Cap Growth Series For the first $100 million .90%
For the next $100 million .85%
For assets over $200 million .80%
Investors Growth Series For the first $200 million .90%
For the next $300 million .85%
For assets over $500 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 Multisector Bond Series, Global Asset Allocation Series, American Leaders
Series, Capital Opportunities Series, S&P 500 Index Series, Blue Chip Series,
Blue Chip II Series, International Stock Series, Mid Cap Stock Series, Small
Cap Value Series, Global Equity Series, Large Cap Growth Series and Investors
Growth Series have retained sub-advisers under an investment sub-advisory
agreement to provide investment advice and, in general, to conduct the
management investment program of each portfolio, subject to the general
control of Advisers and the Board of Directors of the Fortis Series Fund,
Inc. Pursuant to the sub-advisory agreements, each sub-adviser will regularly
provide its respective portfolio with investment research, advice and
supervision and furnish continuously an investment program for each portfolio
consistent with its investment objectives and policies, including the
purchase, retention and disposition of securities.
From its advisory fee, Advisers pays the following fees to each of the
sub-advisers:
<TABLE>
<CAPTION>
Annual
Average Net Advisory
Series Assets Fee
<S> <C> <C> <C>
Multisector Bond Series A I M Capital For the first .35%
Management, Inc. $100 million
For assets over .225%
$100 million
Global Asset Allocation Series Morgan Stanley Asset For the first .50%
Management Limited $100 million
For assets over .40%
$100 million
American Leaders Series Federated Investment For the first .50%
Management Company $35 million
For the Next $65 million .35%
For assets over $100 .25%
million
Capital Opportunities Series Massachusetts Financial For the first $200 .50%
Services Company million
For the next $300 million .45%
For assets over $500 .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
Blue Chip Stock Series II A I M Capital For the first $200 .55%
Management, Inc. million
For assets over $200 .50%
International Stock Series Lazard-Freres Asset For the first $100 .45%
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 .40%
million
Small Cap Value Series Berger Associates For the first $50 million .50%
For assets over $50 .45%
million
Global Equity Series Massachusetts Financial For the first $200 .60%
Services Company million
For the next $300 million .55%
For assets over $500 .50%
million
</TABLE>
124
<PAGE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Annual
Average Net Advisory
Series Assets Fee
<S> <C> <C> <C>
Large cap Growth Series Alliance Caipal For the first $100 .50%
Managememt L.P. million
For the next $100 million .45%
For assets over $200 .40%
million
Investors Growth Series Massachusetts Financial For the first $200 .50%
Services Company million
For the mext $300 million .45%
For assets over $500 .40%
million
</TABLE>
Multisector Bond Series, formerly known as Global Bond Series, has changed
its sub-adviser from Mercury Asset Management International Ltd., to AIM
Capital management, Inc., as of March 15, 2000. There has been no change in
the advisory fee of the Series.
For the six-month period ended June 30, 2000, 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 ......................... $ 2,237
U.S. Government Securitites Series .......... 4,233
Diversified Income Series ................... 3,086
Multisector Bond Series ..................... 696
</TABLE>
<TABLE>
<CAPTION>
Series Amount
<S> <C>
High Yield Series ........................... $ 1,941
Global Asset Allocation Series .............. 1,892
Asset Allocation Series ..................... 16,414
American Leaders Series ..................... 2,368
Value Series ................................ 2,481
Capital Opportunities Series ................ 2,368
Growth & Income Series ...................... 8,678
S & P 500 Index Series ...................... 7,974
Blue Chip Stock Series ...................... 5,685
Blue Chip Stock Series II.................... 2,368
International Stock Series .................. 2,991
Mid Cap Stock Series ........................ 518
Small Cap Value Series ...................... 622
Global Growth Series ........................ 9,445
Global Equity Series ........................ 2,368
Large Cap Growth Series ..................... 1,071
Investors Growth Series ..................... 2,368
Growth Stock Series ......................... 20,155
Aggressive Growth Series .................... 4,463
</TABLE>
3. FORWARD FOREIGN CURRENCY CONTRACTS: At June 30, 2000, the Global Asset
Allocation Series, Capital Opportunities Series, International Stock Series,
Global Growth Series, Global Equity Series and Investors Growth Series
entered into forward foreign currency exchange contracts that obligated the
Series to deliver/ receive currencies at a specified future date. The
unrealized appreciation (depreciation) on these contracts is included in the
accompanying financial statements. The terms of the open contracts are as
follows:
<TABLE>
<CAPTION>
FORWARD FOREIGN CURRENCY CONTRACTS
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 June 30, 2000 Be Received June 30, 2000 (Depreciation)
<S> <C> <C> <C> <C> <C>
July 3, 2000 131,497 $ 199,858 207,650 $ 207,650 $ 7,792
British Pound U.S. Dollar
July 3, 2000 299,907 34,193 33,986 33,986 (207)
Swedish Krona U.S. Dollar
July 6, 2000 237,349 237,349 25,000,000 233,994 (3,355)
U.S. Dollar Japanese Yen
July 6, 2000 25,000,000 234,957 235,139 235,139 182
Japanese Yen U.S. Dollar
July 7, 2000 625,440 625,440 700,000 683,830 58,390
U.S. Dollar European Monetary Unit
July 12, 2000 140,000 212,155 212,940 212,940 785
British Pound U.S. Dollar
July 12, 2000 1,750,000 1,678,782 1,693,650 1,693,650 14,868
European Monetary Unit U.S. Dollar
August 29, 2000 844,595 844,595 1,250,000 845,166 571
U.S. Dollar Canadian Dollar
August 29, 2000 239,248 239,248 400,000 240,268 1,020
U.S. Dollar Australian Dollar
---------- ---------- --------
$4,306,577 $4,386,623 $ 80,046
---------- ---------- --------
</TABLE>
125
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (continued)
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FORWARD FOREIGN CURRENCY CONTRACTS
CAPITAL OPPORTUNITIES SERIES
------------------------------------------------------------------------------------------------------------
U.S. Dollar U.S. Dollar Unrealized
Currency To Value As Of Currency To Value As Of Appreciation/
Settle Date Be Delivered June 30, 2000 Be Received June 30, 2000 (Depeciation)
<S> <C> <C> <C> <C> <C>
July 3, 2000 8,184 $ 8,184 5,458 $ 8,263 $ 79
U.S. Dollar British Pound
--------- --------- -------
$ 8,184 $ 8,263 $ 79
--------- --------- -------
</TABLE>
<TABLE>
<CAPTION>
FORWARD FOREIGN CURRENCY CONTRACTS
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 June 30, 2000 Be Received June 30, 2000 (Depreciation)
<S> <C> <C> <C> <C> <C>
July 3, 2000 186,300 $ 186,300 194,467 $ 186,416 $ 116
U.S. Dollar European Monetary Unit
July 3, 2000 184,462 184,462 122,168 184,951 489
U.S. Dollar British Pound
July 3, 2000 152,456 152,456 100,971 152,860 404
U.S. Dollar British Pound
July 3, 2000 184,886 184,886 122,449 185,376 490
U.S. Dollar British Pound
--------- --------- -------
$ 708,104 $ 709,603 $ 1,499
--------- --------- -------
</TABLE>
<TABLE>
<CAPTION>
FORWARD FOREIGN CURRENCY CONTRACTS
GLOBAL GROWTH SERIES
------------------------------------------------------------------------------------------------------------
U.S. Dollar U.S. Dollar Unrealized
Currency To Value As Of Currency To Value As Of Appreciation/
Settle Date Be Delivered June 30, 2000 Be Received June 30, 2000 (Depeciation)
<S> <C> <C> <C> <C> <C>
July 3, 2000 3,601,278 $3,452,185 3,388,803 $3,388,803 $(63,382)
European Monetary U.S. Dollar
Units
---------- ---------- --------
$3,452,185 $3,388,803 $(63,382)
---------- ---------- --------
</TABLE>
<TABLE>
<CAPTION>
FORWARD FOREIGN CURRENCY CONTRACTS
GLOBAL EQUITY SERIES
------------------------------------------------------------------------------------------------------------
U.S. Dollar U.S. Dollar Unrealized
Currency To Value As Of Currency To Value As Of Appreciation/
Settle Date Be Delivered June 30, 2000 Be Received June 30, 2000 (Depeciation)
<S> <C> <C> <C> <C> <C>
July 3, 2000 1,171 $ 1,123 1,105 $ 1,105 $ (18)
European Monetary U.S. Dollar
Units
July 3, 2000 1,593 1,593 1,700 1,630 37
U.S.Dollar European Monetary
Units
July 3, 2000 41,785 41,785 4,397,925 41,566 (219)
U.S.Dollar Japanese Yen
July 5, 2000 76,370 8,935 8,883 8,883 (52)
Norwegian Krone U.S. Dollar
July 31, 2000 6,552 6,281 6,250 6,250 (31)
European Monetary U.S. Dollar
Units
--------- --------- -------
$ 59,717 $ 59,434 $ (283)
--------- --------- -------
</TABLE>
126
<PAGE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FORWARD FOREIGN CURRENCY CONTRACTS
INVESTORS GROWTH SERIES
------------------------------------------------------------------------------------------------------------
U.S. Dollar U.S. Dollar Unrealized
Currency To Value As Of Currency To Value As Of Appreciation/
Settle Date Be Delivered June 30, 2000 Be Received June 30, 2000 (Depeciation)
<S> <C> <C> <C> <C> <C>
July 3, 2000 6,251 $ 6,251 6,564 $ 6,292 $ 41
U.S. Dollar European Monetary
Units
July 5, 2000 66,909 7,627 7,565 7,565 $ (62)
Swedish Krona U.S. Dollar
July 6, 2000 1,230 1,227 1,230 1,230 $ 3
British Pound U.S. Dollar
--------- --------- -------
$ 15,105 $ 15,087 $ (18)
--------- --------- -------
</TABLE>
4. NET ASSETS INCLUDE UNDISTRIBUTED (EXCESS OF DISTRIBUTIONS OVER) NET
INVESTMENT INCOME OF:
<TABLE>
<CAPTION>
2000 1999
<S> <C> <C>
Money Market Series ......................... $ 7,379,542 $ 4,466,661
U.S. Government Securities Series ........... 12,382,713 8,329,737
Diversified Income Series ................... 11,035,974 7,438,940
Multisector Bond Series ..................... (514,070) 357,578
High Yield Series ........................... 9,680,074 6,530,561
Global Asset Allocation Series .............. 436,395 (92,419)
Asset Allocation Series ..................... 25,070,804 15,806,752
American Leaders Series ..................... 14,133 --
Value Series ................................ 1,096,531 777,519
Capital Opportunities Series ................ 8,142 --
Growth & Income Series ...................... 6,403,508 4,402,984
S & P 500 Index Series ...................... 4,811,700 3,112,410
</TABLE>
<TABLE>
<CAPTION>
2000 1999
<S> <C> <C>
Blue Chip Stock Series ...................... $ (133,037) $ 10,313
Blue Chip Stock Series II.................... 830 --
International Stock Series .................. 5,369,439 4,293,891
Mid Cap Stock Series ........................ 43,208 1,150
Small Cap Value Series ...................... 394,170 7,618
Global Growth Series ........................ 3,448,547 3,558,566
Global Equity Series ........................ 17,298 --
Large Cap Growth Series ..................... (73,249) --
Investors Growth Series ..................... 4,257 --
Growth Stock Series ......................... (1,112,024) --
Aggressive Growth Series .................... (416,118) --
</TABLE>
5. SHARES OF CAPITAL STOCK SOLD AND REPURCHASED:
<TABLE>
<CAPTION>
SHARES ISSUED
AS A RESULT OF NET INCREASE (DECREASE)
SHARES SOLD REINVESTED DIVIDENDS SHARES REPURCHASED OF SHARES
---------------------- ---------------------- ------------------------ ------------------------
2000 1999 2000 1999 2000 1999 2000 1999
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Money Market Series ...... 7,169,753 11,017,535 -- 304,332 (10,504,040) (7,211,114) (3,334,287) 4,110,753
U.S. Government Securities
Series ................. 513,298 1,361,980 -- 789,914 (1,986,625) (2,429,575) (1,473,327) (277,681)
Diversified Income
Series ................. 351,728 708,060 -- 668,026 (1,144,973) (1,770,065) (793,245) (393,979)
Multisector Bond
Series ................. 261,495 706,551 -- 99,609 (725,540) (510,559) (464,045) 295,601
High Yield Series ........ 435,766 930,821 -- 713,412 (943,654) (1,313,629) (507,888) 330,604
Global Asset Allocation
Series ................. 225,061 494,776 -- 368,552 (1,021,064) (671,008) (796,003) 192,320
Asset Allocation
Series ................. 916,611 1,709,242 -- 2,978,672 (956,241) (2,995,739) (39,630) 1,692,175
American Leaders
Series ................. 539,496 -- -- -- (168) -- 539,328 --
Value Series ............. 487,496 659,996 -- 4,499 (751,280) (715,516) (263,784) (51,021)
Capital Opportunities
Series ................. 876,596 -- -- -- (655) -- 875,941 --
Growth & Income Series ... 275,863 620,808 -- 997,623 (1,326,946) (1,904,530) (1,051,083) (286,099)
S & P 500 Index Series ... 2,404,630 7,350,726 -- 2,925 (2,050,308) (2,032,947) 354,322 5,320,704
Blue Chip Stock Series ... 1,021,562 3,323,297 -- 194,408 (917,941) (406,623) 103,621 3,111,082
Blue Chip Stock
Series II............... 663,208 -- -- -- (3,933) -- 659,275 --
International Stock
Series ................. 1,320,226 2,014,188 -- 9,651 (380,692) (1,112,312) 939,534 911,527
Mid Cap Stock Series ..... 764,750 1,118,482 -- 2,572 (118,530) (147,796) 646,220 973,258
Small Cap Value Series ... 780,650 2,171,147 -- 173,756 (674,808) (284,799) 105,842 2,060,104
Global Growth Series ..... 1,637,421 770,884 -- 339,626 (1,093,864) (3,028,167) 543,557 (1,917,657)
Global Equity Series ..... 848,874 -- -- -- (44,301) -- 804,573 --
Large Cap Growth
Series ................. 2,185,621 4,222,642 -- 98,655 (863,695) (125,347) 1,321,926 4,195,950
Investors Growth
Series ................. 849,410 -- -- -- (2,446) -- 846,964 --
Growth Stock Series ...... 553,140 469,349 -- 6,986,242 (839,264) (2,864,866) (286,124) 4,590,725
Aggressive Growth
Series ................. 2,535,576 1,665,100 -- 307,070 (890,577) (1,085,748) 1,644,999 886,422
</TABLE>
127
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (continued)
(Unaudited)
--------------------------------------------------------------------------------
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 2000** 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 11.20 $ 11.06 $ 11.03 $ 10.94 $ 10.83 $ 10.63
------- -------- ------- ------- ------- -------
Operations:
Investment income - net............... .33 .54 .57 .58 .57 .60
Distributions to shareholders:
From investment income - net.......... -- (.40) (.54) (.49) (.46) (.40)
------- -------- ------- ------- ------- -------
Net asset value, end of period.......... $ 11.53 $ 11.20 $ 11.06 $ 11.03 $ 10.94 $ 10.83
------- -------- ------- ------- ------- -------
Total Return @.......................... 2.93% 4.96% 5.32% 5.34% 5.17% 5.71%
Net assets end of period (000s
omitted).............................. $89,297 $124,105 $77,097 $57,009 $61,906 $41,807
Ratio of expenses to average daily net
assets................................ .35%* .35% .35% .38% .38% .40%
Ratio of net investment income to
average daily net assets.............. 5.77%* 4.88% 5.18% 5.19% 5.14% 5.44%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 2000.
@ These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions.
<TABLE>
<CAPTION>
Year Ended December 31,
---------------------------------------------------------------
U.S. GOVERNMENT SERIES 2000** 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 10.13 $ 10.93 $ 10.68 $ 10.57 $ 11.16 $ 9.40
-------- -------- -------- -------- -------- --------
Operations:
Investment income - net............... .41 .63 .60 .80 .67 .70
Net realized and unrealized gain
(loss) on investments............... (.05) (.84) .34 .12 (.51) 1.06
-------- -------- -------- -------- -------- --------
Total from operations................... .36 (.21) .94 .92 .16 1.76
-------- -------- -------- -------- -------- --------
Distributions to shareholders:
From investment income - net.......... -- (.59) (.69) (.81) (.75) --
-------- -------- -------- -------- -------- --------
Net asset value, end of period.......... $ 10.49 $ 10.13 $ 10.93 $ 10.68 $ 10.57 $ 11.16
-------- -------- -------- -------- -------- --------
Total Return @.......................... 3.59% (1.94%) 8.87% 9.08% 2.21% 18.78%
Net assets end of period (000s
omitted).............................. $128,184 $138,658 $152,672 $142,070 $161,678 $182,687
Ratio of expenses to average daily net
assets................................ .53%* .52% .51% .54% .53% .53%
Ratio of net investment income to
average daily net assets.............. 6.20%* 5.64% 5.53% 6.03% 6.17% 6.78%
Portfolio turnover rate................. 80% 97% 114% 148% 176% 115%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 2000.
@ These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions.
128
<PAGE>
--------------------------------------------------------------------------------
6. FINANCIAL HIGHLIGHTS (continued):
<TABLE>
<CAPTION>
Year Ended December 31,
--------------------------------------------------------------
DIVERSIFIED INCOME SERIES 2000** 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 10.91 $ 11.91 $ 11.98 $ 11.70 $ 12.20 $ 10.40
------- -------- -------- -------- -------- --------
Operations:
Investment income - net............... .50 .85 .73 .91 .82 .88
Net realized and unrealized gain
(loss) on investments............... (.25) (1.05) .01 .26 (.40) .92
------- -------- -------- -------- -------- --------
Total from operations................... .25 (.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 period.......... $ 11.16 $ 10.91 $ 11.91 $ 11.98 $ 11.70 $ 12.20
------- -------- -------- -------- -------- --------
Total Return @.......................... 2.29% (1.68%) 6.31% 10.44% 4.15% 17.26%
Net assets end of period (000s
omitted).............................. $94,618 $101,153 $115,182 $105,200 $105,831 $109,120
Ratio of expenses to average daily net
assets................................ .55%* .54% .52% .55% .55% .55%
Ratio of net investment income to
average daily net assets.............. 7.41%* 6.78% 6.56% 7.11% 6.86% 7.78%
Portfolio turnover rate................. 23% 87% 96% 166% 171% 139%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 2000.
@ These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions.
<TABLE>
<CAPTION>
Year Ended December 31,
---------------------------------------------------------
MULTISECTOR BOND SERIES 2000** 1999 1998 1997 1996 1995+
<S> <C> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 10.26 $ 11.56 $ 10.65 $ 11.11 $ 11.30 $ 10.00
------- ------- ------- ------- ------- -------
Operations:
Investment income - net............... .32 .57 .30 .46 .57 .54
Net realized and unrealized gain
(loss) on investments............... (.37) (1.44) 1.13 (.45) (.13) 1.52
------- ------- ------- ------- ------- -------
Total from operations................... (.05) (.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 period.......... $ 10.21 $ 10.26 $ 11.56 $ 10.65 $ 11.11 $ 11.30
------- ------- ------- ------- ------- -------
Total Return @.......................... (.48%) (7.53%) 13.49% .14% 3.32% 19.14%
Net assets end of period (000s
omitted).............................. $20,066 $24,926 $24,659 $20,692 $20,228 $13,187
Ratio of expenses to average daily net
assets................................ .94%* .90% .88% 1.10% 1.02% 1.28%*
Ratio of net investment income to
average daily net assets.............. 5.14%* 3.83% 4.19% 4.41% 5.07% 5.01%*
Portfolio turnover rate................. 251% 194% 190% 168% 129% 184%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 2000.
+ For the period January 3, 1995 (commencement of operations) to
December 31, 1995. The portfolio's inception was December 14, 1994,
when initially capitalized. However, the portfolio's shares did not
become effectively registered under the Securities Act of 1933 until
January 3, 1995. Information is not presented for the period from
December 14, 1994, through January 3, 1995, as the portfolio's shares
were not registered during that period.
@ These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions.
# On March 15, 2000, Multisector Bond Series, formerly known as Global
Bond Series, changed its investment objective in conjunction with a
change in sub-adviser. As Global Bond Series, the Series invested
principally in high quality U.S. and foreign government and corporate
fixed income securities, the new investment objective of the fund is
to invest in U.S. and foreign government obligations and fixed rate
corporate debt including investment and non-investment grade bonds.
The Series' sub-adviser changed from Mercury Asset Management
International Ltd., to AIM Capital Management, Inc.
129
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (continued)
(Unaudited)
--------------------------------------------------------------------------------
6. FINANCIAL HIGHLIGHTS (continued):
<TABLE>
<CAPTION>
Year Ended December 31,
---------------------------------------------------------
HIGH YIELD SERIES 2000** 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 9.09 $ 9.91 $ 10.77 $ 9.83 $ 9.74 $ 9.47
------- ------- ------- ------- ------- -------
Operations:
Investment income - net............... .51 .89 .75 .96 1.04 1.15
Net realized and unrealized gain
(loss) on investments............... (.59) (.80) (.71) -- .13 .30
------- ------- ------- ------- ------- -------
Total from operations................... (.08) .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 on
investments......................... -- -- (.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 period.......... $ 9.01 $ 9.09 $ 9.91 $ 10.77 $ 9.83 $ 9.74
------- ------- ------- ------- ------- -------
Total Return............................ (.94%) 1.17% .62% 9.76% 10.52% 12.73%
Net assets end of period (000s
omitted).............................. $62,949 $68,166 $70,983 $59,228 $42,578 $28,129
Ratio of expenses to average daily net
assets................................ .57%* .57% .56% .62% .63% .63%
Ratio of net investment income to
average daily net assets.............. 9.78%* 9.19% 9.39% 10.31% 10.22% 11.30%
Portfolio turnover rate................. 73% 75% 120% 353% 235% 130%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 2000.
@ These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions.
<TABLE>
<CAPTION>
Year Ended December 31,
---------------------------------------------------------
GLOBAL ASSET ALLOCATION SERIES 2000** 1999 1998 1997 1996 1995+
<S> <C> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 13.17 $ 14.32 $ 13.29 $ 12.34 $ 11.42 $ 10.00
------- ------- ------- ------- ------- -------
Operations:
Investment income - net............... .12 .22 .28 .28 .36 .35
Net realized and unrealized gain
(loss) on investments............... .20 (.34) 1.81 1.39 1.19 1.55
------- ------- ------- ------- ------- -------
Total from operations................... .32 (.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 on
investments......................... -- (.79) (.75) (.46) (.25) (.14)
------- ------- ------- ------- ------- -------
Total distributions to shareholders..... -- (1.03) (1.06) (.72) (.63) (.48)
------- ------- ------- ------- ------- -------
Net asset value, end of period.......... $ 13.49 $ 13.17 $ 14.32 $ 13.29 $ 12.34 $ 11.42
------- ------- ------- ------- ------- -------
Total Return @.......................... 2.42% (.87%) 15.96% 13.51% 12.72% 17.47%
Net assets end of period (000s
omitted).............................. $56,928 $66,067 $69,086 $52,482 $37,307 $20,080
Ratio of expenses to average daily net
assets................................ 1.02%* 1.02% 1.01% 1.16% 1.20% 1.28%*
Ratio of net investment income to
average daily net assets.............. 2.50%* 2.26% 2.13% 2.42% 3.01% 3.26%*
Portfolio turnover rate................. 32% 59% 69% 51% 46% 44%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 2000.
+ For the period January 3, 1995 (commencement of operations) to
December 31, 1995. The portfolio's inception was December 14, 1994,
when initially capitalized. However, the portfolio's shares did not
become effectively registered under the Securities Act of 1933 until
January 3, 1995. Information is not presented for the period from
December 14, 1994, through January 3, 1995, as the portfolio's shares
were not registered during that period.
@ These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions.
130
<PAGE>
--------------------------------------------------------------------------------
6. FINANCIAL HIGHLIGHTS (continued):
<TABLE>
<CAPTION>
Year Ended December 31,
---------------------------------------------------------------
ASSET ALLOCATION SERIES 2000** 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 22.78 $ 21.09 $ 17.62 $ 16.99 $ 15.90 $ 13.56
-------- -------- -------- -------- -------- --------
Operations:
Investment income - net............... .31 .54 .49 .59 .61 .65
Net realized and unrealized gain
(loss) on investments............... (.31) 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 period.......... $ 22.78 $ 22.78 $ 21.09 $ 17.62 $ 16.99 $ 15.90
-------- -------- -------- -------- -------- --------
Total Return @.......................... 0% 19.56% 19.97% 20.24% 12.50% 21.97%
Net assets end of period (000s
omitted).............................. $678,949 $679,957 $593,878 $482,280 $397,712 $341,511
Ratio of expenses to average daily net
assets................................ .51%* .52% .51% .53% .54% .55%
Ratio of net investment income to
average daily net assets.............. 2.72%* 2.58% 2.64% 3.16% 3.66% 4.25%
Portfolio turnover rate................. 67% 178% 114% 113% 115% 98%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 2000.
@ These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions.
<TABLE>
<CAPTION>
AMERICAN LEADERS SERIES 2000+
<S> <C>
-------------------------------------------------
Net asset value, beginning of period.... $10.35
------
Operations:
Investment income - net............... .01
Net realized and unrealized gain
(loss) on investments............... (.21)
------
Total from operations................... (.20)
------
Net asset value, end of period.......... $10.15
------
Total Return @.......................... (1.99%)
Net assets end of period (000s
omitted).............................. $5,472
Ratio of expenses to average daily net
assets................................ 1.25%*(a)
Ratio of net investment income to
average daily net assets.............. 1.12%*(a)
Portfolio turnover rate................. 7%
</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, 2000 (commencement of operations) to June 30,
2000. The portfolio's inception was April 3, 2000, when it was
initially capitalized. However, the portfolio's shares did not become
effectively registered under the Securities Act of 1933 until May 1,
2000. Information is not presented for the period from April 3, 2000,
through May 1, 2000, as the portfolio's shares were not registered
during that period.
(a) Advisers has voluntarily undertaken to limit annual expenses for
American Leader Series (exclusive of interest, taxes, brokerage
commission and non-recurring extraordinary charges and expenses) to
1.25% of the average net assets. For the period presented, had the
waiver and reimbursement of expenses not been in effect, the ratios of
expenses and net investment income to average daily net assets would
have been 1.54% and .83%, respectively.
131
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (continued)
(Unaudited)
--------------------------------------------------------------------------------
6. FINANCIAL HIGHLIGHTS (continued):
<TABLE>
<CAPTION>
Year Ended December 31,
-----------------------------------------------
VALUE SERIES 2000** 1999 1998 1997 1996+
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 15.65 $ 14.38 $ 13.42 $ 11.38 $ 10.27
------- ------- ------- ------- -------
Operations:
Investment income - net............... .06 .13 .16 .12 .14
Net realized and unrealized gain
(loss) on investments............... (.06) 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 period.......... $ 15.65 $ 15.65 $ 14.38 $ 13.42 $ 11.38
------- ------- ------- ------- -------
Total Return @.......................... 0% 8.96% 9.64% 25.24% 11.49%
Net assets end of period (000s
omitted).............................. $90,440 $94,583 $87,604 $55,058 $13,951
Ratio of expenses to average daily net
assets................................ .77%* .78% .76% .83% .87%*
Ratio of net investment income to
average daily net assets.............. .69%* .85% 1.26% 1.41% 1.72%*
Portfolio turnover rate................. 105% 211% 332% 121% 36%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 2000.
+ For the period May 1, 1996 (commencement of operations) to
December 31, 1996. The portfolio's inception was March 28, 1996, when
initially capitalized. However, the portfolio's shares did not become
effectively registered under the Securities Act 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 portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions.
<TABLE>
<CAPTION>
CAPITAL OPPORTUNITIES SERIES 2000+
<S> <C>
-------------------------------------------------
Net asset value, beginning of period.... $10.61
------
Operations:
Investment income - net............... --
Net realized and unrealized gain
(loss) on investments............... (.12)
------
Total from operations................... (.12)
------
Net asset value, end of period.......... $10.49
------
Total Return @.......................... (1.05%)
Net assets end of period (000s
omitted).............................. $9,193
Ratio of expenses to average daily net
assets................................ 1.25%(a)*
Ratio of net investment income to
average daily net assets.............. (.03%)(a)*
Portfolio turnover rate................. 17%
</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, 2000 (commencement of operations) to June 30,
2000. The portfolio's inception was April 3, 2000, when initially
capitalized. However, the portfolio's shares did not become
effectively registered under the Securities Act of 1933 until May 1,
2000. Information is not presented for the period from April 3, 2000,
through May 1, 2000, as the portfolio's shares were not registered
during that period.
(a) Advisers has voluntarily undertaken to limit annual expenses for
Capital Opportunities Series (exclusive of interest, taxes, brokerage
commission and non-recurring extraordinary charges and expenses) to
1.25% of the average net assets. For the period presented, had the
waiver and reimbursement of expenses not been in effect, the ratios of
expenses and net investment income to average daily net assets would
have been 1.33% and (.11%), respectively.
132
<PAGE>
--------------------------------------------------------------------------------
6. FINANCIAL HIGHLIGHTS (continued):
<TABLE>
<CAPTION>
Year Ended December 31,
--------------------------------------------------------------
GROWTH & INCOME SERIES 2000** 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 21.94 $ 21.23 $ 18.76 $ 15.16 $ 12.83 $ 10.07
-------- -------- -------- -------- -------- -------
Operations:
Investment income - net............... .17 .33 .48 .40 .34 .33
Net realized and unrealized gain
(loss) on investments............... (.14) 1.81 2.00 3.80 2.54 2.76
-------- -------- -------- -------- -------- -------
Total from operations................... .03 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 on
investments......................... -- (.93) (.01) (.21) (.21) --
-------- -------- -------- -------- -------- -------
Total distributions to shareholders..... -- (1.43) (.01) (.60) (.55) (.33)
-------- -------- -------- -------- -------- -------
Net asset value, end of period.......... $ 21.97 $ 21.94 $ 21.23 $ 18.76 $ 15.16 $ 12.83
-------- -------- -------- -------- -------- -------
Total Return @.......................... .12% 10.72% 13.21% 27.69% 21.51% 29.70%
Net assets end of period (000s
omitted).............................. $294,492 $317,186 $312,939 $244,970 $134,932 $59,533
Ratio of expenses to average daily net
assets................................ .68%* .69% .67% .70% .76% .80%
Ratio of net investment income to
average daily net assets.............. 1.32%* 1.41% 2.45% 2.63% 2.38% 2.86%
Portfolio turnover rate................. 52% 95% 30% 11% 20% 17%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 2000.
@ 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,
---------------------------------------------------
S&P 500 INDEX SERIES 2000** 1999 1998 1997 1996+
<S> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 22.66 $ 18.83 $ 14.93 $ 11.47 $ 10.09
-------- -------- -------- -------- -------
Operations:
Investment income - net............... .09 .17 .16 .12 .10
Net realized and unrealized gain
(loss) on investments............... (.25) 3.66 4.03 3.58 1.37
-------- -------- -------- -------- -------
Total from operations................... (.16) 3.83 4.19 3.70 1.47
-------- -------- -------- -------- -------
Distributions to shareholders:
From investment income - net.......... -- -- (.16) (.12) (.09)
From net realized gains on
investments......................... -- -- (.13) (.12) --
-------- -------- -------- -------- -------
Total distributions to shareholders..... -- -- (.29) (.24) (.09)
-------- -------- -------- -------- -------
Net asset value, end of period.......... $ 22.50 $ 22.66 $ 18.83 $ 14.93 $ 11.47
-------- -------- -------- -------- -------
Total Return @.......................... (.72%) 20.34% 28.11% 32.32% 14.29%
Net assets end of period (000s
omitted).............................. $429,692 $424,773 $252,832 $109,572 $21,979
Ratio of expenses to average daily net
assets................................ .44%* .46% .46% .51% .79%*
Ratio of net investment income to
average daily net assets.............. .82%* .92% 1.17% 1.41% 1.47%*
Portfolio turnover rate................. 4% 3% 3% 5% 6%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 2000.
+ For the period May 1, 1995 (commencement of operations) to
December 31, 1996. The portfolio's inception was March 28, 1996, when
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.
133
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (continued)
(Unaudited)
--------------------------------------------------------------------------------
6. FINANCIAL HIGHLIGHTS (continued):
<TABLE>
<CAPTION>
Year Ended December 31,
--------------------------------------------------
BLUE CHIP STOCK SERIES 2000** 1999 1998 1997 1996+
<S> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 21.93 $ 18.58 $ 14.76 $ 11.67 $ 10.07
-------- -------- -------- ------- -------
Operations:
Investment income (loss) - net........ (.01) .02 .05 .07 .07
Net realized and unrealized gain on
investments......................... 1.54 3.65 4.09 3.08 1.60
-------- -------- -------- ------- -------
Total from operations................... 1.53 3.67 4.14 3.15 1.67
-------- -------- -------- ------- -------
Distributions to shareholders:
From investment income - net.......... -- (.02) (.06) (.06) (.07)
From net realized gains on
investments......................... -- (.30) (.26) -- --
-------- -------- -------- ------- -------
Total distributions to shareholders..... -- (.32) (.32) (.06) (.07)
-------- -------- -------- ------- -------
Net asset value, end of period.......... $ 23.46 $ 21.93 $ 18.58 $ 14.76 $ 11.67
-------- -------- -------- ------- -------
Total Return @.......................... 6.96% 19.88% 28.07% 27.00% 16.24%
Net assets end of period (000s
omitted).............................. $306,435 $284,229 $182,921 $78,729 $17,606
Ratio of expenses to average daily net
assets................................ .92%* .92% .94% 1.02% 1.13%*
Ratio of net investment income to
average daily net assets.............. (.10%)* .10% .41% .75% .82%*
Portfolio turnover rate................. 28% 40% 34% 24% 17%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 2000.
+ For the period May 1, 1996 (commencement of operations) to
December 31, 1996. The portfolio's inception was March 28, 1996, when
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 portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions.
<TABLE>
<CAPTION>
BLUE CHIP STOCK SERIES II 2000+
<S> <C>
-------------------------------------------------
Net asset value, beginning of period.... $10.36
------
Operations:
Investment income - net............... (.01)
Net realized and unrealized gain
(loss) on investments............... .02
------
Total from operations................... .01
------
Net asset value, end of period.......... $10.37
------
Total Return @.......................... .08%
Net assets end of period (000s
omitted).............................. $6,837
Ratio of expenses to average daily net
assets................................ 1.30%*(a)
Ratio of net investment income to
average daily net assets.............. (.30%)*(a)
Portfolio turnover rate................. 3%
</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, 2000 (commencement of operations) to June 30,
2000. The portfolio's inception was April 3, 2000, when initially
capitalized. However, the portfolio's shares did not become
effectively registered under the Securities Act of 1933 until May 1,
2000. Information is not presented for the period from April 3, 2000,
through May 1, 2000, as the portfolio's shares were not registered
during that period.
(a) Advisers has voluntarily undertaken to limit annual expenses for Blue
Chip Stock II (exclusive of interest, taxes, brokerage commission and
non-recurring extraordinary charges and expenses) to 1.30% of the
average net assets. For the period presented, had the waiver and
reimbursement of expenses not been in effect, the ratios of expenses
and net investment income to average daily net assets would have been
1.52% and (.52%), respectively.
134
<PAGE>
--------------------------------------------------------------------------------
6. FINANCIAL HIGHLIGHTS (continued):
<TABLE>
<CAPTION>
Year Ended December 31,
------------------------------------------------------------
INTERNATIONAL STOCK SERIES 2000** 1999 1998 1997 1996 1995+
<S> <C> <C> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 17.94 $ 14.48 $ 13.36 $ 12.44 $ 11.27 $ 10.00
-------- -------- -------- ------- ------- -------
Operations:
Investment income - net............... .06 .18 .15 .13 .20 .14
Net realized and unrealized gain
(loss) on investments............... (.75) 3.30 2.03 1.35 1.48 1.38
-------- -------- -------- ------- ------- -------
Total from operations................... (.69) 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 period.......... $ 17.25 $ 17.94 $ 14.48 $ 13.36 $ 12.44 $ 11.27
-------- -------- -------- ------- ------- -------
Total Return @.......................... (3.80%) 23.99% 16.47% 11.99% 14.02% 14.35%
Net assets end of period (000s
omitted).............................. $154,704 $143,969 $103,056 $79,142 $52,331 $21,327
Ratio of expenses to average daily net
assets................................ .90%* .94% .94% 1.08% 1.15% 1.14%*
Ratio of net investment income to
average daily net assets.............. 1.50%* 1.26% 1.20% 1.10% 1.71% 1.41%*
Portfolio turnover rate................. 28% 29% 44% 30% 27% 39%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 2000.
+ For the period January 3, 1995 (commencement of operations) to
December 31, 1995. The portfolio's inception was December 14, 1994,
when initially capitalized. However, the portfolio's shares did not
become effectively registered under the Securities Act of 1933 until
January 3, 1995. Information is not presented for the period from
December 14, 1994, through January 3, 1995, as the portfolio's shares
were not registered during that period.
@ These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions.
<TABLE>
<CAPTION>
Year Ended December 31,
---------------------------
MID CAP STOCK SERIES 2000** 1999 1998+
<S> <C> <C> <C>
----------------------------------------------------------------------
Net asset value, beginning of period.... $ 10.68 $ 9.64 $ 9.94
------- ------- -------
Operations:
Investment income - net............... .01 .01 .02
Net realized and unrealized gain
(loss) on investments............... .75 1.04 (.30)
------- ------- -------
Total from operations................... .76 1.05 (.28)
------- ------- -------
Distributions to shareholders:
From investment income - net.......... -- (.01) (.02)
------- ------- -------
Net asset value, end of period.......... $ 11.44 $ 10.68 $ 9.64
------- ------- -------
Total Return @.......................... 7.11% 10.97% (2.89%)
Net assets end of period (000s
omitted).............................. $33,955 $24,800 $12,995
Ratio of expenses to average daily net
assets................................ 1.05%* 1.18% 1.25%*(a)
Ratio of net investment income to
average daily net assets.............. .29%* .15% .19%*(a)
Portfolio turnover rate................. 52% 73% 66%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 2000.
+ For the period May 1, 1998 (commencement of operations) to
December 31, 1998. The portfolio's inception was March 25, 1998, when
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 presented, had the waiver and
reimbursement of expenses not been in effect, the ratios of expenses
and net investment income to average daily net assets would have been
1.40% and .04%, respectively.
135
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (continued)
(Unaudited)
--------------------------------------------------------------------------------
6. FINANCIAL HIGHLIGHTS (continued):
<TABLE>
<CAPTION>
Year Ended December 31,
---------------------------
SMALL CAP VALUE SERIES 2000** 1999 1998+
<S> <C> <C> <C>
----------------------------------------------------------------------
Net asset value, beginning of period.... $ 10.20 $ 9.28 $ 9.96
------- ------- -------
Operations:
Investment income - net............... .10 .12 .07
Net realized and unrealized gain
(loss) on investments............... .25 1.27 (.62)
------- ------- -------
Total from operations................... .35 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 period.......... $ 10.55 $ 10.20 $ 9.28
------- ------- -------
Total Return @.......................... 3.39% 15.34% (5.48%)
Net assets end of period (000s
omitted).............................. $41,617 $39,171 $16,503
Ratio of expenses to average daily net
assets................................ .99%* 1.04% 1.24%*
Ratio of net investment income to
average daily net assets.............. 1.90%* 1.57% 1.56%*
Portfolio turnover rate................. 55% 68% 57%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 2000.
+ For the period May 1, 1998 (commencement of operations) to
December 31, 1998. The portfolio's inception was March 25, 1998, when
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 2000** 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 34.72 $ 22.57 $ 20.29 $ 19.00 $ 15.97 $ 12.31
-------- -------- -------- -------- -------- --------
Operations:
Investment income (loss) - net........ (.02) -- .03 .02 .03 .09
Net realized and unrealized gain
(loss) on investments............... (.80) 12.78 2.27 1.27 3.03 3.66
-------- -------- -------- -------- -------- --------
Total from operations................... (.82) 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 period.......... $ 33.90 $ 34.72 $ 22.57 $ 20.29 $ 19.00 $ 15.97
-------- -------- -------- -------- -------- --------
Total Return @.......................... (2.35%) 57.68% 11.36% 6.82% 19.10% 30.49%
Net assets end of period (000s
omitted).............................. $481,445 $474,180 $351,476 $353,255 $319,831 $207,913
Ratio of expenses to average daily net
assets................................ .75%* .77% .75% .79% .79% .80%
Ratio of net investment income to
average daily net assets.............. (.03%)* (.01%) .12% .12% .15% .64%
Portfolio turnover rate................. 12% 44% 32% 35% 14% 29%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 2000.
@ These are the portfolio's total returns during the period, including
reinvestment of all dividend and capital gains distributions.
136
<PAGE>
--------------------------------------------------------------------------------
6. FINANCIAL HIGHLIGHTS (continued):
<TABLE>
<CAPTION>
GLOBAL EQUITY SERIES 2000+
<S> <C>
-------------------------------------------------
Net asset value, beginning of period.... $10.28
------
Operations:
Investment income (loss) - net........ --
Net realized and unrealized gain on
investments......................... .17
------
Total from operations................... .17
------
Net asset value, end of period.......... $10.45
------
Total Return @.......................... 1.67%
Net assets end of period (000s
omitted).............................. $8,408
Ratio of expenses to average daily net
assets................................ 1.35%*(a)
Ratio of net investment income to
average daily net assets.............. .56%*(a)
Portfolio turnover rate................. 7%
</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, 2000 (commencement of operations) to June 30,
2000. The portfolio's inception was April 3, 2000, when it was
initially capitalized. However, the portfolio's shares did not become
effectively registered under the Securities Act of 1933 until May 1,
2000. Information is not presented for the period from April 3, 2000,
through May 1, 2000, as the portfolio's shares were not registered
during that period.
(a) Advisers has voluntarily undertaken to limit annual expenses for
Global Equity Series (exclusive of interest, taxes, brokerage
commission and non-recurring extraordinary charges and expenses) to
1.35% of the average net assets. For the period presented, had the
waiver and reimbursement of expenses not been in effect, the ratios of
expenses and net investment income to average daily net assets would
have been 1.49% and .42%, respectively.
<TABLE>
<CAPTION>
Year Ended December 31,
----------------------------------
LARGE CAP GROWTH SERIES 2000** 1999 1998+
<S> <C> <C> <C>
------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 15.05 $ 12.04 $ 10.16
-------- ------- -------
Operations:
Investment income (loss) - net........ (.01) (.01) --
Net realized and unrealized gain on
investments......................... .28 3.28 1.88
-------- ------- -------
Total from operations................... .27 3.27 1.88
-------- ------- -------
Distributions to shareholders:
From net realized gains............... -- (.26) --
-------- ------- -------
Net asset value, end of period.......... $ 15.32 $ 15.05 $ 12.04
-------- ------- -------
Total Return @.......................... 1.76% 27.22% 18.61%
Net assets end of period (000s
omitted).............................. $108,839 $87,061 $19,121
Ratio of expenses to average daily net
assets................................ .95%* .97% 1.25%*(a)
Ratio of net investment income to
average daily net assets.............. (.15%)* (.09%) .03%*(a)
Portfolio turnover rate................. 34% 50% 36%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 2000.
@ 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
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 presented, had the waiver and
reimbursement of expenses not been in effect, the ratios of expenses
and net investment income to average daily net assets would have been
1.27% and .01%, respectively.
137
<PAGE>
FORTIS SERIES FUND, INC.
Notes to Financial Statements (continued)
(Unaudited)
--------------------------------------------------------------------------------
6. FINANCIAL HIGHLIGHTS (continued):
<TABLE>
<CAPTION>
INVESTORS GROWTH SERIES 2000+
<S> <C>
-------------------------------------------------
Net asset value, beginning of period.... $10.42
------
Operations:
Investment income - net............... --
Net realized and unrealized gain
(loss) on investments............... (.04)
------
Total from operations................... (.04)
------
Net asset value, end of period.......... $10.38
------
Total Return @.......................... (.38%)
Net assets end of period (000s
omitted).............................. $8,787
Ratio of expenses to average daily net
assets................................ 1.25%*(a)
Ratio of net investment income to
average daily net assets.............. (.25%)*(a)
Portfolio turnover rate................. 35%
</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, 2000 (commencement of operations) to June 30,
2000. The portfolio's inception was April 3, 2000, when initially
capitalized. However, the portfolio's shares did not become
effectively registered under the Securities Act of 1933 until May 1,
2000. Information is not presented for the period from April 3, 2000,
through May 1, 2000, as the portfolio's shares were not registered
during that period.
(a) Advisers has voluntarily undertaken to limit annual expenses for
Investors Growth (exclusive of interest, taxes, brokerage commission
and non-recurring extraordinary charges and expenses) to 1.25% of the
average net assets. For the period presented, had the waiver and
reimbursement of expenses not been in effect, the ratios of expenses
and net investment income to average daily net assets would have been
1.34% and (.34%), respectively.
<TABLE>
<CAPTION>
Year Ended December 31,
----------------------------------------------------------------------
GROWTH STOCK SERIES 2000** 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 45.14 $ 41.09 $ 36.64 $ 32.59 $ 28.09 $ 22.11
---------- ---------- -------- -------- -------- --------
Operations:
Investment income (loss) - net........ (.05) (.05) .09 .12 .12 .13
Net realized and unrealized gain
(loss) on investments............... 6.73 17.42 6.40 3.93 4.50 5.98
---------- ---------- -------- -------- -------- --------
Total from operations................... 6.68 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 on
investments......................... -- (13.23) (1.91) -- -- --
---------- ---------- -------- -------- -------- --------
Total distributions to shareholders..... -- (13.32) (2.04) -- (.12) (.13)
---------- ---------- -------- -------- -------- --------
Net asset value, end of period.......... $ 51.82 $ 45.14 $ 41.09 $ 36.64 $ 32.59 $ 28.09
---------- ---------- -------- -------- -------- --------
Total Return @.......................... 14.79% 55.17% 19.01% 12.42% 16.41% 27.66%
Net assets end of period (000s
omitted).............................. $1,184,431 $1,044,728 $762,354 $707,155 $661,217 $530,945
Ratio of expenses to average daily net
assets................................ .64%* .66% .65% .66% .67% .67%
Ratio of net investment income to
average daily net assets.............. (.20%)* (.18%) .21% .33% .39% .51%
Portfolio turnover rate................. 57% 175% 106% 19% 30% 20%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 2000.
@ These are the portfolio's total returns during the period, including
reinvestment of all dividend and capital gains distributions.
138
<PAGE>
--------------------------------------------------------------------------------
6. FINANCIAL HIGHLIGHTS (continued):
<TABLE>
<CAPTION>
Year Ended December 31,
--------------------------------------------------------------------
AGGRESSIVE GROWTH SERIES 2000** 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 33.79 $ 16.70 $ 13.81 $ 13.62 $ 12.68 $ 9.80
-------- -------- -------- -------- ------- -------
Operations:
Investment income (loss) - net........ (.04) (.04) .01 .03 .03 .07
Net realized and unrealized gain
(loss) on investments............... 4.11 17.86 2.91 .16 .94 2.88
-------- -------- -------- -------- ------- -------
Total from operations................... 4.07 17.82 2.92 .19 .97 2.95
-------- -------- -------- -------- ------- -------
Distributions to shareholders:
From investment income - net.......... -- (.01) (.03) -- (.03) (.07)
From net realized gains on
investments......................... -- (.72) -- -- -- --
-------- -------- -------- -------- ------- -------
Total distributions to shareholders..... -- (.73) (.03) -- (.03) (.07)
-------- -------- -------- -------- ------- -------
Net asset value, end of period.......... $ 37.86 $ 33.79 $ 16.70 $ 13.81 $ 13.62 $ 12.68
-------- -------- -------- -------- ------- -------
Total Return @.......................... 12.04% 109.25% 21.17% 1.43% 7.64% 29.89%
Net assets end of period (000s
omitted).............................. $435,530 $333,158 $149,860 $122,455 $96,931 $46,943
Ratio of expenses to average daily net
assets................................ .65%* .72% .72% .76% .78% .81%
Ratio of net investment income to
average daily net assets.............. (.20%)* (.22%) .06% .24% .22% .58%
Portfolio turnover rate................. 92% 264% 135% 25% 22% 21%
</TABLE>
* Annualized.
** For the six-month period ended June 30, 2000.
@ These are the portfolio's total returns during the period, including
reinvestment of all dividend and capital gains distributions.
139
<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
Phillip O. Peterson MUTUAL FUND INDUSTRY CONSULTANT;
PARTNER OF KPMG LLP, THROUGH JUNE
1999
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.
Noel F. Schenker MARKETING CONSULTANT. PRIOR TO MAY
1996, SENIOR VICE PRESIDENT OF
MARKETING & STRATEGIC PLANNING,
ROLLERBLADE, INC.
Dr. Lemma W. Senbet CONSULTANT, INTERNATIONAL FINANCIAL
INSTITUTIONS; THE WILLIAM E. MAYER
PROFESSOR OF FINANCE AND CHAIR,
FINANCE DEPARTMENT, UNIVERSITY OF
MARYLAND, COLLEGE PARK, MD.
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.
140
<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
MULTISECTOR BOND
SUBACCOUNT
HIGH YIELD SUBACCOUNT
GLOBAL ASSET ALLOCATION
SUBACCOUNT
ASSET ALLOCATION
SUBACCOUNT
AMERICAN LEADERS
SUBACCOUNT
VALUE SUBACCOUNT
CAPITAL OPPORTUNITIES
SUBACCOUNT
GROWTH & INCOME
SUBACCOUNT
S&P 500 INDEX SUBACCOUNT
BLUE CHIP STOCK
SUBACCOUNT
BLUE CHIP STOCK II
SUBACCOUNT
INTERNATIONAL STOCK
SUBACCOUNT
MID CAP STOCK SUBACCOUNT
SMALL CAP VALUE
SUBACCOUNT
GLOBAL GROWTH SUBACCOUNT
GLOBAL EQUITY SUBACCOUNT
LARGE CAP GROWTH
SUBACCOUNT
INVESTORS 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
MULTISECTOR BOND
SUBACCOUNT
HIGH YIELD SUBACCOUNT
GLOBAL ASSET ALLOCATION
SUBACCOUNT
ASSET ALLOCATION
SUBACCOUNT
AMERICAN LEADERS
SUBACCOUNT
VALUE SUBACCOUNT
CAPITAL OPPORTUNITIES
SUBACCOUNT
GROWTH & INCOME
SUBACCOUNT
S&P 500 INDEX SUBACCOUNT
BLUE CHIP STOCK
SUBACCOUNT
BLUE CHIP STOCK II
SUBACCOUNT
INTERNATIONAL STOCK
SUBACCOUNT
MID CAP STOCK SUBACCOUNT
SMALL CAP VALUE
SUBACCOUNT
GLOBAL GROWTH SUBACCOUNT
GLOBAL EQUITY SUBACCOUNT
LARGE CAP GROWTH
SUBACCOUNT
INVESTORS 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.
141
<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 provides a wide selection of investment products
including annuities, life insurance and mutual funds. 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 PRSRT STD
P.O. Box 64284 U.S. Postage
St. Paul, MN 55164-0284 PAID
Permit No. 3794
Minneapolis, MN
Fortis Series Fund, Inc.
The Fortis brandmark and Fortis-Registered Trademark- are servicemarks of
Fortis (B) and Fortis (NL).
59475-C-Fortis, Inc. 7/00
