<PAGE> PAGE 1
000 B000000 08/31/96
000 C000000 0000823344
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 U
001 A000000 FORTIS ADVANTAGE PORTFOLIOS, INC.
001 B000000 811-5355
001 C000000 6127384000
002 A000000 500 BIELENBERG DRIVE
002 B000000 WOODBURY
002 C000000 MN
002 D010000 55125
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 Y
007 B000000 3
007 C010100 1
007 C020100 ASSET ALLOCATION PORTFOLIO
007 C030100 N
007 C010200 2
007 C020200 CAPITAL APPRECIATION PORTFOLIO
007 C030200 N
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
020 A000001 BRIDGE TRADING CO.
020 B000001 43-1034850
020 C000001 25
020 A000002 LAZARD FRERES & CO.
020 B000002 13-5545100
020 C000002 8
020 A000003 ROBERTSON, STEPHENS & CO.
020 B000003 94-2524501
020 C000003 8
020 A000004 PAINE WEBBER, INC.
020 B000004 13-2638166
020 C000004 7
020 A000005 MORGAN STANLEY & CO., INC
020 B000005 13-2655998
020 C000005 6
<PAGE> PAGE 2
020 A000006 MONTGOMERY SECURITIES
020 B000006 94-1701676
020 C000006 6
020 A000007 HAMBRECHT & QUIST, INC.
020 B000007 94-2856935
020 C000007 6
020 A000008 LEHMAN BROTHERS, INC.
020 B000008 13-2518466
020 C000008 6
020 A000009 DONALDSON, LUFKIN & JENRETTE SECURITIES
020 B000009 13-2741729
020 C000009 5
020 A000010 BEAR, STEARNS & CO.
020 B000010 13-3299429
020 C000010 5
021 000000 136
022 A000001 FIRST BANK (N.A.)
022 B000001 41-0256395
022 C000001 269700
022 D000001 263974
022 A000002 LEHMAN BROTHERS, INC.
022 B000002 13-2518466
022 C000002 121703
022 D000002 51002
022 A000003 DONALDSON, LUFKIN & JENRETTE SECURITIES
022 B000003 13-2741729
022 C000003 81345
022 D000003 49281
022 A000004 CHASE MANHATTAN
022 B000004 41-0988154
022 C000004 52444
022 D000004 40385
022 A000005 NATIONAL WESTMINSTER
022 B000005 11-0773597
022 C000005 73171
022 D000005 17765
022 A000006 MENDHAM CAPITAL
022 B000006 22-3165996
022 C000006 33590
022 D000006 54933
022 A000007 CITICORP
022 B000007 13-2771536
022 C000007 29257
022 D000007 29149
022 A000008 NATIONS BANK
022 B000008 56-1684171
022 C000008 30482
022 D000008 19992
022 A000009 BEAR STEARNS & CO.
022 B000009 13-3299429
022 C000009 33490
<PAGE> PAGE 3
022 D000009 15012
022 A000010 FREEMAN SECURITIES CO., INC.
022 B000010 13-2662313
022 C000010 11767
022 D000010 29713
023 C000000 949737
023 D000000 737293
077 A000000 Y
077 B000000 Y
015 A000101 NORWEST BANK MINNESOTA, N.A.
015 B000101 C
015 C010101 MINNEAPOLIS
015 C020101 MN
015 C030101 55479
015 E010101 X
015 A000102 FIRST TRUST CO., INC.
015 B000102 S
015 C010102 ST. PAUL
015 C020102 MN
015 C030102 55164
015 E010102 X
025 A000101 FIRST BANK (N.A.)
025 B000101 41-0256395
025 C000101 D
025 D000101 4283
025 A000102 LEHMAN BROTHER, INC.
025 B000102 13-2518466
025 C000102 D
025 D000102 1030
025 A000103 DONALDSON, LUFKIN & JENRETTE SECURITIES
025 B000103 13-2741729
025 C000103 D
025 D000103 4427
025 A000104 MERRILL LYNCH, PIERCE, FENNER & SMITH, INC.
025 B000104 13-5674085
025 C000104 D
025 D000104 3765
025 A000105 PAINE WEBBER, INC.
025 B000105 13-2638166
025 C000105 D
025 D000105 2232
025 D000106 0
025 D000107 0
025 D000108 0
028 A010100 3183
028 A020100 869
028 A030100 0
028 A040100 2152
028 B010100 3627
028 B020100 0
028 B030100 0
<PAGE> PAGE 4
028 B040100 2846
028 C010100 3304
028 C020100 0
028 C030100 0
028 C040100 2589
028 D010100 2887
028 D020100 1018
028 D030100 0
028 D040100 2108
028 E010100 3053
028 E020100 0
028 E030100 0
028 E040100 2637
028 F010100 2521
028 F020100 0
028 F030100 0
028 F040100 2663
028 G010100 18575
028 G020100 1887
028 G030100 0
028 G040100 14995
028 H000100 6724
029 000100 Y
030 A000100 537
030 B000100 4.75
030 C000100 0.00
031 A000100 119
031 B000100 0
032 000100 103
033 000100 315
034 000100 Y
035 000100 22
036 A000100 N
036 B000100 0
042 A000100 0
042 B000100 0
042 C000100 0
042 D000100 0
042 E000100 0
042 F000100 0
042 G000100 0
042 H000100 0
043 000100 0
044 000100 1147
062 A000100 Y
062 B000100 0.0
062 C000100 0.0
062 D000100 0.0
062 E000100 0.0
062 F000100 0.0
062 G000100 0.0
<PAGE> PAGE 5
062 H000100 0.0
062 I000100 0.0
062 J000100 2.8
062 K000100 0.0
062 L000100 0.1
062 M000100 6.8
062 N000100 11.8
062 O000100 0.0
062 P000100 15.0
062 Q000100 16.5
062 R000100 0.0
063 A000100 0
063 B000100 7.9
064 A000100 Y
064 B000100 N
070 A010100 Y
070 A020100 Y
070 B010100 Y
070 B020100 N
070 C010100 Y
070 C020100 N
070 D010100 Y
070 D020100 N
070 E010100 Y
070 E020100 N
070 F010100 Y
070 F020100 N
070 G010100 Y
070 G020100 N
070 H010100 Y
070 H020100 N
070 I010100 Y
070 I020100 N
070 J010100 Y
070 J020100 Y
070 K010100 Y
070 K020100 N
070 L010100 Y
070 L020100 Y
070 M010100 Y
070 M020100 N
070 N010100 Y
070 N020100 Y
070 O010100 Y
070 O020100 N
070 P010100 Y
070 P020100 N
070 Q010100 N
070 Q020100 N
070 R010100 N
070 R020100 N
<PAGE> PAGE 6
071 A000100 143205
071 B000100 127908
071 C000100 143717
071 D000100 89
072 A000100 12
072 B000100 6155
072 C000100 270
072 D000100 0
072 E000100 27
072 F000100 1396
072 G000100 0
072 H000100 0
072 I000100 0
072 J000100 42
072 K000100 7
072 L000100 29
072 M000100 10
072 N000100 51
072 O000100 0
072 P000100 0
072 Q000100 0
072 R000100 21
072 S000100 5
072 T000100 741
072 U000100 0
072 V000100 0
072 W000100 12
072 X000100 2314
072 Y000100 0
072 Z000100 4138
072AA000100 11711
072BB000100 4731
072CC010100 0
072CC020100 4346
072DD010100 3889
072DD020100 272
072EE000100 2819
073 A010100 0.0000
073 A020100 0.0000
073 B000100 0.3240
073 C000100 0.0000
074 A000100 6
074 B000100 0
074 C000100 4445
074 D000100 77419
074 E000100 0
074 F000100 72408
074 G000100 0
074 H000100 0
074 I000100 31880
074 J000100 490
<PAGE> PAGE 7
074 K000100 0
074 L000100 1021
074 M000100 27
074 N000100 187696
074 O000100 993
074 P000100 130
074 Q000100 0
074 R010100 0
074 R020100 0
074 R030100 0
074 R040100 31961
074 S000100 0
074 T000100 154612
074 U010100 8291
074 U020100 1096
074 V010100 0.00
074 V020100 0.00
074 W000100 0.0000
074 X000100 17015
074 Y000100 0
075 A000100 0
075 B000100 149363
076 000100 0.00
080 A000100 RELIANCE INSURANCE COMPANY
080 C000100 600
081 A000100 N
081 B000100 0
082 A000100 N
082 B000100 0
083 A000100 N
083 B000100 0
084 A000100 N
084 B000100 0
085 A000100 Y
085 B000100 N
015 A000201 NORWEST BANK MINNESOTA, N.A.
015 B000201 C
015 C010201 MINNEAPOLIS
015 C020201 MN
015 C030201 55479
015 E010201 X
025 A000201 FIRST BANK (N.A.)
025 B000201 41-0256395
025 C000201 D
025 D000201 6474
025 A000202 DELETE
025 D000202 0
025 D000203 0
025 D000204 0
025 D000205 0
025 D000206 0
<PAGE> PAGE 8
025 D000207 0
025 D000208 0
028 A010200 3943
028 A020200 0
028 A030200 0
028 A040200 9790
028 B010200 6113
028 B020200 0
028 B030200 0
028 B040200 2583
028 C010200 5147
028 C020200 0
028 C030200 0
028 C040200 2362
028 D010200 3560
028 D020200 0
028 D030200 0
028 D040200 1609
028 E010200 4499
028 E020200 0
028 E030200 0
028 E040200 2002
028 F010200 3361
028 F020200 0
028 F030200 0
028 F040200 1304
028 G010200 26623
028 G020200 0
028 G030200 0
028 G040200 19650
028 H000200 7258
029 000200 Y
030 A000200 564
030 B000200 4.75
030 C000200 0.00
031 A000200 120
031 B000200 0
032 000200 98
033 000200 346
034 000200 Y
035 000200 9
036 A000200 N
036 B000200 0
042 A000200 0
042 B000200 0
042 C000200 0
042 D000200 0
042 E000200 0
042 F000200 0
042 G000200 0
042 H000200 0
<PAGE> PAGE 9
043 000200 0
044 000200 934
062 A000200 N
062 B000200 0.0
062 C000200 0.0
062 D000200 0.0
062 E000200 0.0
062 F000200 0.0
062 G000200 0.0
062 H000200 0.0
062 I000200 0.0
062 J000200 0.0
062 K000200 0.0
062 L000200 0.0
062 M000200 0.0
062 N000200 0.0
062 O000200 0.0
062 P000200 0.0
062 Q000200 0.0
062 R000200 0.0
070 A010200 Y
070 A020200 Y
070 B010200 Y
070 B020200 N
070 C010200 N
070 C020200 N
070 D010200 Y
070 D020200 N
070 E010200 N
070 E020200 N
070 F010200 Y
070 F020200 N
070 G010200 Y
070 G020200 N
070 H010200 Y
070 H020200 N
070 I010200 Y
070 I020200 N
070 J010200 Y
070 J020200 N
070 K010200 Y
070 K020200 N
070 L010200 Y
070 L020200 Y
070 M010200 Y
070 M020200 N
070 N010200 Y
070 N020200 Y
070 O010200 Y
070 O020200 N
070 P010200 Y
<PAGE> PAGE 10
070 P020200 N
070 Q010200 N
070 Q020200 N
070 R010200 N
070 R020200 N
071 A000200 43705
071 B000200 34932
071 C000200 102741
071 D000200 34
072 A000200 12
072 B000200 575
072 C000200 12
072 D000200 0
072 E000200 88
072 F000200 1087
072 G000200 0
072 H000200 0
072 I000200 0
072 J000200 26
072 K000200 6
072 L000200 27
072 M000200 10
072 N000200 50
072 O000200 0
072 P000200 0
072 Q000200 0
072 R000200 19
072 S000200 4
072 T000200 545
072 U000200 0
072 V000200 0
072 W000200 7
072 X000200 1781
072 Y000200 0
072 Z000200 -1106
072AA000200 11539
072BB000200 8799
072CC010200 12903
072CC020200 0
072DD010200 0
072DD020200 0
072EE000200 723
073 A010200 0.0000
073 A020200 0.0000
073 B000200 0.2260
073 C000200 0.0000
074 A000200 1
074 B000200 0
074 C000200 17300
074 D000200 0
074 E000200 0
<PAGE> PAGE 11
074 F000200 112678
074 G000200 0
074 H000200 0
074 I000200 43027
074 J000200 102
074 K000200 0
074 L000200 74
074 M000200 22
074 N000200 173204
074 O000200 599
074 P000200 107
074 Q000200 0
074 R010200 0
074 R020200 0
074 R030200 0
074 R040200 43087
074 S000200 0
074 T000200 129411
074 U010200 3287
074 U020200 438
074 V010200 0.00
074 V020200 0.00
074 W000200 0.0000
074 X000200 22046
074 Y000200 0
075 A000200 0
075 B000200 111906
076 000200 0.00
080 A000200 RELIANCE INSURANCE COMPANY
080 C000200 525
081 A000200 N
081 B000200 0
082 A000200 N
082 B000200 0
083 A000200 N
083 B000200 0
084 A000200 N
084 B000200 0
085 A000200 Y
085 B000200 N
SIGNATURE TAMARA L. FAGELY
TITLE TREASURER
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
STATEMENT OF ASSETS AND LIABILITIES, STATEMENT OF OPERATIONS, AND STATEMENT OF
CHANGES IN NET ASSETS FOUND ON PAGES 36 THROUGH 49 OF THE FORTIS STOCK FUNDS
ANNUAL SHAREHOLDER REPORT.
</LEGEND>
<CIK> 0000823344
<NAME> FORTIS ADVANTAGE PORTFOLIOS, INC.
<SERIES>
<NUMBER> 1
<NAME> FORTIS ADVANTAGE ASSET ALLOCATION PORTFOLIO (CLASS A)
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> AUG-31-1996
<PERIOD-START> SEP-01-1995
<PERIOD-END> AUG-31-1996
<INVESTMENTS-AT-COST> 129,052,844
<INVESTMENTS-AT-VALUE> 154,272,312
<RECEIVABLES> 1,511,594
<ASSETS-OTHER> 31,879,970<F1>
<OTHER-ITEMS-ASSETS> 31,845
<TOTAL-ASSETS> 187,695,721
<PAYABLE-FOR-SECURITIES> 993,406
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 32,090,259<F1>
<TOTAL-LIABILITIES> 33,083,665
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 121,670,800
<SHARES-COMMON-STOCK> 8,290,599
<SHARES-COMMON-PRIOR> 8,049,167
<ACCUMULATED-NII-CURRENT> 817,083
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 6,904,705
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 25,219,468
<NET-ASSETS> 154,612,056
<DIVIDEND-INCOME> 270,394
<INTEREST-INCOME> 6,154,524
<OTHER-INCOME> 26,954<F2>
<EXPENSES-NET> (2,313,719)
<NET-INVESTMENT-INCOME> 4,138,153
<REALIZED-GAINS-CURRENT> 6,979,691
<APPREC-INCREASE-CURRENT> (4,345,482)
<NET-CHANGE-FROM-OPS> 6,772,362
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (3,826,272)
<DISTRIBUTIONS-OF-GAINS> (2,624,363)
<DISTRIBUTIONS-OTHER> (62,850)
<NUMBER-OF-SHARES-SOLD> 1,434,734
<NUMBER-OF-SHARES-REDEEMED> (1,564,760)
<SHARES-REINVESTED> 371,458
<NET-CHANGE-IN-ASSETS> 15,528,137
<ACCUMULATED-NII-PRIOR> 772,587
<ACCUMULATED-GAINS-PRIOR> 2,811,049
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,396,000
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,313,719
<AVERAGE-NET-ASSETS> 149,363,000
<PER-SHARE-NAV-BEGIN> 16.52
<PER-SHARE-NII> 0.47
<PER-SHARE-GAIN-APPREC> 0.29
<PER-SHARE-DIVIDEND> (0.47)
<PER-SHARE-DISTRIBUTIONS> (0.32)
<RETURNS-OF-CAPITAL> (0.01)
<PER-SHARE-NAV-END> 16.48
<EXPENSE-RATIO> 1.50
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>SECURITIES VALUED AT $30,589,127 WERE ON LOAN TO BROKERS FROM THE PORTFOLIO.
FOR COLLATERAL, THE PORTFOLIO'S CUSTODIAN RECEIVED $31,879,970 IN CASH.
<F2>SECURITY LENDING INCOME THROUGH AUGUST 31, 1996.
</FN>
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
STATEMENT OF ASSETS AND LIABILITIES, STATEMENT OF OPERATIONS, AND STATEMENT OF
CHANGES IN NET ASSETS FOUND ON PAGES 36 THROUGH 49 OF THE FORTIS STOCK FUNDS
ANNUAL SHAREHOLDER REPORT.
</LEGEND>
<CIK> 0000823344
<NAME> FORTIS ADVANTAGE PORTFOLIOS, INC.
<SERIES>
<NUMBER> 1
<NAME> FORTIS ADVANTAGE ASSET ALLOCATION PORTFOLIO (CLASS B)
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> AUG-31-1996
<PERIOD-START> SEP-01-1995
<PERIOD-END> AUG-31-1996
<INVESTMENTS-AT-COST> 129,052,844
<INVESTMENTS-AT-VALUE> 154,272,312
<RECEIVABLES> 1,511,594
<ASSETS-OTHER> 31,879,970<F1>
<OTHER-ITEMS-ASSETS> 31,845
<TOTAL-ASSETS> 187,695,721
<PAYABLE-FOR-SECURITIES> 993,406
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 32,090,259<F1>
<TOTAL-LIABILITIES> 33,083,665
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 121,670,800
<SHARES-COMMON-STOCK> 268,897
<SHARES-COMMON-PRIOR> 42,077
<ACCUMULATED-NII-CURRENT> 817,083
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 6,904,705
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 25,219,468
<NET-ASSETS> 154,612,056
<DIVIDEND-INCOME> 270,394
<INTEREST-INCOME> 6,154,524
<OTHER-INCOME> 26,954<F2>
<EXPENSES-NET> (2,313,719)
<NET-INVESTMENT-INCOME> 4,138,153
<REALIZED-GAINS-CURRENT> 6,979,691
<APPREC-INCREASE-CURRENT> (4,345,482)
<NET-CHANGE-FROM-OPS> 6,772,362
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (49,452)
<DISTRIBUTIONS-OF-GAINS> (29,773)
<DISTRIBUTIONS-OTHER> (713)
<NUMBER-OF-SHARES-SOLD> 271,822
<NUMBER-OF-SHARES-REDEEMED> (49,827)
<SHARES-REINVESTED> 4,825
<NET-CHANGE-IN-ASSETS> 15,528,137
<ACCUMULATED-NII-PRIOR> 772,587
<ACCUMULATED-GAINS-PRIOR> 2,811,049
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,396,000
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,313,719
<AVERAGE-NET-ASSETS> 149,363,000
<PER-SHARE-NAV-BEGIN> 16.46
<PER-SHARE-NII> 0.37
<PER-SHARE-GAIN-APPREC> 0.29
<PER-SHARE-DIVIDEND> (0.39)
<PER-SHARE-DISTRIBUTIONS> (0.32)
<RETURNS-OF-CAPITAL> (0.01)
<PER-SHARE-NAV-END> 16.40
<EXPENSE-RATIO> 2.05
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>SECURITIES VALUED AT $30,589,127 WERE ON LOAN TO BROKERS FROM THE PORTFOLIO.
FOR COLLATERAL, THE PORTFOLIO'S CUSTODIAN RECEIVED $31,879,970 IN CASH.
<F2>SECURITY LENDING INCOME THROUGH AUGUST 31, 1996.
</FN>
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
STATEMENT OF ASSETS AND LIABILITIES, STATEMENT OF OPERATIONS, AND STATEMENT OF
CHANGES IN NET ASSETS FOUND ON PAGES 36 THROUGH 49 OF THE FORTIS STOCK FUNDS
ANNUAL SHAREHOLDER REPORT.
</LEGEND>
<CIK> 0000823344
<NAME> FORTIS ADVANTAGE PORTFOLIOS, INC.
<SERIES>
<NUMBER> 1
<NAME> FORTIS ADVANTAGE ASSET ALLOCATION PORTFOLIO (CLASS C)
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> AUG-31-1996
<PERIOD-START> SEP-01-1995
<PERIOD-END> AUG-31-1996
<INVESTMENTS-AT-COST> 129,052,844
<INVESTMENTS-AT-VALUE> 154,272,312
<RECEIVABLES> 1,511,594
<ASSETS-OTHER> 31,879,970<F1>
<OTHER-ITEMS-ASSETS> 31,845
<TOTAL-ASSETS> 187,695,721
<PAYABLE-FOR-SECURITIES> 993,406
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 32,090,259<F1>
<TOTAL-LIABILITIES> 33,083,665
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 121,670,800
<SHARES-COMMON-STOCK> 161,487
<SHARES-COMMON-PRIOR> 47,355
<ACCUMULATED-NII-CURRENT> 817,083
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 6,904,705
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 25,219,468
<NET-ASSETS> 154,612,056
<DIVIDEND-INCOME> 270,394
<INTEREST-INCOME> 6,154,524
<OTHER-INCOME> 26,954<F2>
<EXPENSES-NET> (2,313,719)
<NET-INVESTMENT-INCOME> 4,138,153
<REALIZED-GAINS-CURRENT> 6,979,691
<APPREC-INCREASE-CURRENT> (4,345,482)
<NET-CHANGE-FROM-OPS> 6,772,362
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (39,801)
<DISTRIBUTIONS-OF-GAINS> (27,550)
<DISTRIBUTIONS-OTHER> (660)
<NUMBER-OF-SHARES-SOLD> 135,425
<NUMBER-OF-SHARES-REDEEMED> (25,306)
<SHARES-REINVESTED> 4,013
<NET-CHANGE-IN-ASSETS> 15,528,137
<ACCUMULATED-NII-PRIOR> 772,587
<ACCUMULATED-GAINS-PRIOR> 2,811,049
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,396,000
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,313,719
<AVERAGE-NET-ASSETS> 149,363,000
<PER-SHARE-NAV-BEGIN> 16.41
<PER-SHARE-NII> 0.37
<PER-SHARE-GAIN-APPREC> 0.29
<PER-SHARE-DIVIDEND> (0.39)
<PER-SHARE-DISTRIBUTIONS> (0.32)
<RETURNS-OF-CAPITAL> (0.01)
<PER-SHARE-NAV-END> 16.35
<EXPENSE-RATIO> 2.05
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>SECURITIES VALUED AT $30,589,127 WERE ON LOAN TO BROKERS FROM THE PORTFOLIO.
FOR COLLATERAL, THE PORTFOLIO'S CUSTODIAN RECEIVED $31,879,970 IN CASH.
<F2>SECURITY LENDING INCOME THROUGH AUGUST 31, 1996.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
STATEMENT OF ASSETS AND LIABILITIES, STATEMENT OF OPERATIONS, AND STATEMENT OF
CHANGES IN NET ASSETS FOUND ON PAGES 36 THROUGH 49 OF THE FORTIS STOCK FUNDS
ANNUAL SHAREHOLDER REPORT.
</LEGEND>
<CIK> 0000823344
<NAME> FORTIS ADVANTAGE PORTFOLIOS, INC.
<SERIES>
<NUMBER> 1
<NAME> FORTIS ADVANTAGE ASSET ALLOCATION PORTFOLIO (CLASS H)
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> AUG-31-1996
<PERIOD-START> SEP-01-1995
<PERIOD-END> AUG-31-1996
<INVESTMENTS-AT-COST> 129,052,844
<INVESTMENTS-AT-VALUE> 154,272,312
<RECEIVABLES> 1,511,594
<ASSETS-OTHER> 31,879,970<F1>
<OTHER-ITEMS-ASSETS> 31,845
<TOTAL-ASSETS> 187,695,721
<PAYABLE-FOR-SECURITIES> 993,406
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 32,090,259<F1>
<TOTAL-LIABILITIES> 33,083,665
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 121,670,800
<SHARES-COMMON-STOCK> 665,230
<SHARES-COMMON-PRIOR> 284,416
<ACCUMULATED-NII-CURRENT> 817,083
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 6,904,705
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 25,219,468
<NET-ASSETS> 154,612,056
<DIVIDEND-INCOME> 270,394
<INTEREST-INCOME> 6,154,524
<OTHER-INCOME> 26,954<F2>
<EXPENSES-NET> (2,313,719)
<NET-INVESTMENT-INCOME> 4,138,153
<REALIZED-GAINS-CURRENT> 6,979,691
<APPREC-INCREASE-CURRENT> (4,345,482)
<NET-CHANGE-FROM-OPS> 6,772,362
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (178,132)
<DISTRIBUTIONS-OF-GAINS> (136,849)
<DISTRIBUTIONS-OTHER> (3,277)
<NUMBER-OF-SHARES-SOLD> 455,625
<NUMBER-OF-SHARES-REDEEMED> (92,983)
<SHARES-REINVESTED> 18,172
<NET-CHANGE-IN-ASSETS> 15,528,137
<ACCUMULATED-NII-PRIOR> 772,587
<ACCUMULATED-GAINS-PRIOR> 2,811,049
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,396,000
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,313,719
<AVERAGE-NET-ASSETS> 149,363,000
<PER-SHARE-NAV-BEGIN> 16.44
<PER-SHARE-NII> 0.38
<PER-SHARE-GAIN-APPREC> 0.29
<PER-SHARE-DIVIDEND> (0.39)
<PER-SHARE-DISTRIBUTIONS> (0.32)
<RETURNS-OF-CAPITAL> (0.01)
<PER-SHARE-NAV-END> 16.39
<EXPENSE-RATIO> 2.05
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>SECURITIES VALUED AT $30,589,127 WERE ON LOAN TO BROKERS FROM THE PORTFOLIO.
FOR COLLATERAL, THE PORTFOLIO'S CUSTODIAN RECEIVED $31,879,970 IN CASH.
<F2>SECURITY LENDING INCOME THROUGH AUGUST 31, 1996.
</FN>
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
STATEMENT OF ASSETS AND LIABILITIES, STATEMENT OF OPERATIONS, AND STATEMENT OF
CHANGES IN NET ASSETS FOUND ON PAGES 36 THROUGH 54 OF THE FORTIS STOCK FUNDS
ANNUAL SHAREHOLDER REPORT.
</LEGEND>
<CIK> 0000823344
<NAME> FORTIS ADVANTAGE PORTFOLIOS, INC.
<SERIES>
<NUMBER> 2
<NAME> FORTIS ADVANTAGE CAPITAL APPRECIATION PORTFOLIO (CLASS A)
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> AUG-31-1996
<PERIOD-START> SEP-01-1995
<PERIOD-END> AUG-31-1996
<INVESTMENTS-AT-COST> 75,555,979
<INVESTMENTS-AT-VALUE> 129,978,119
<RECEIVABLES> 176,145
<ASSETS-OTHER> 43,026,604<F1>
<OTHER-ITEMS-ASSETS> 22,635
<TOTAL-ASSETS> 173,203,503
<PAYABLE-FOR-SECURITIES> 599,250
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 43,193,162<F1>
<TOTAL-LIABILITIES> 43,792,412
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 72,250,079
<SHARES-COMMON-STOCK> 3,288,627
<SHARES-COMMON-PRIOR> 2,964,190
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2,738,872
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 54,422,140
<NET-ASSETS> 129,411,091
<DIVIDEND-INCOME> 11,557
<INTEREST-INCOME> 575,269
<OTHER-INCOME> 88,459<F2>
<EXPENSES-NET> (1,781,345)
<NET-INVESTMENT-INCOME> (1,106,060)
<REALIZED-GAINS-CURRENT> 2,740,699
<APPREC-INCREASE-CURRENT> 12,902,794
<NET-CHANGE-FROM-OPS> 14,537,433
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (684,572)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,325,665
<NUMBER-OF-SHARES-REDEEMED> (1,023,915)
<SHARES-REINVESTED> 22,686
<NET-CHANGE-IN-ASSETS> 35,309,455
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 721,393
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,086,889
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,781,345
<AVERAGE-NET-ASSETS> 149,363,000
<PER-SHARE-NAV-BEGIN> 30.67
<PER-SHARE-NII> (0.29)
<PER-SHARE-GAIN-APPREC> 4.61
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> (0.23)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 34.76
<EXPENSE-RATIO> 1.56
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>SECURITIES VALUED AT $41,597,199 WERE ON LOAN TO BROKERS FROM THE PORTFOLIO.
FOR COLLATERAL, THE PORTFOLIO'S CUSTODIAN RECEIVED $43,026,604 IN CASH.
<F2>SECURITY LENDING INCOME THROUGH AUGUST 31, 1996.
</FN>
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
STATEMENT OF ASSETS AND LIABILITIES, STATEMENT OF OPERATIONS, AND STATEMENT OF
CHANGES IN NET ASSETS FOUND ON PAGES 36 THROUGH 54 OF THE FORTIS STOCK FUNDS
ANNUAL SHAREHOLDER REPORT.
</LEGEND>
<CIK> 0000823344
<NAME> FORTIS ADVANTAGE PORTFOLIOS, INC.
<SERIES>
<NUMBER> 2
<NAME> FORTIS ADVANTAGE CAPITAL APPRECIATION PORTFOLIO (CLASS B)
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> AUG-31-1996
<PERIOD-START> SEP-01-1995
<PERIOD-END> AUG-31-1996
<INVESTMENTS-AT-COST> 75,555,979
<INVESTMENTS-AT-VALUE> 129,978,119
<RECEIVABLES> 176,145
<ASSETS-OTHER> 43,026,604<F1>
<OTHER-ITEMS-ASSETS> 22,635
<TOTAL-ASSETS> 173,203,503
<PAYABLE-FOR-SECURITIES> 599,250
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 43,193,162<F1>
<TOTAL-LIABILITIES> 43,792,412
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 72,250,079
<SHARES-COMMON-STOCK> 131,202
<SHARES-COMMON-PRIOR> 27,522
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2,738,872
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 54,422,140
<NET-ASSETS> 129,411,091
<DIVIDEND-INCOME> 11,557
<INTEREST-INCOME> 575,269
<OTHER-INCOME> 88,459<F2>
<EXPENSES-NET> (1,781,345)
<NET-INVESTMENT-INCOME> (1,106,060)
<REALIZED-GAINS-CURRENT> 2,740,699
<APPREC-INCREASE-CURRENT> 12,902,794
<NET-CHANGE-FROM-OPS> 14,537,433
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (11,199)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 110,699
<NUMBER-OF-SHARES-REDEEMED> (7,394)
<SHARES-REINVESTED> 375
<NET-CHANGE-IN-ASSETS> 35,309,455
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 721,393
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,086,889
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,781,345
<AVERAGE-NET-ASSETS> 149,363,000
<PER-SHARE-NAV-BEGIN> 30.57
<PER-SHARE-NII> (0.49)
<PER-SHARE-GAIN-APPREC> 4.61
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> (0.23)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 34.46
<EXPENSE-RATIO> 2.11
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>SECURITIES VALUED AT $41,597,199 WERE ON LOAN TO BROKERS FROM THE PORTFOLIO.
FOR COLLATERAL, THE PORTFOLIO'S CUSTODIAN RECEIVED $43,026,604 IN CASH.
<F2>SECURITY LENDING INCOME THROUGH AUGUST 31, 1996.
</FN>
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
STATEMENT OF ASSETS AND LIABILITIES, STATEMENT OF OPERATIONS, AND STATEMENT OF
CHANGES IN NET ASSETS FOUND ON PAGES 36 THROUGH 54 OF THE FORTIS STOCK FUNDS
ANNUAL SHAREHOLDER REPORT.
</LEGEND>
<CIK> 0000823344
<NAME> FORTIS ADVANTAGE PORTFOLIOS, INC.
<SERIES>
<NUMBER> 2
<NAME> FORTIS ADVANTAGE CAPITAL APPRECIATION PORTFOLIO (CLASS C)
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> AUG-31-1996
<PERIOD-START> SEP-01-1995
<PERIOD-END> AUG-31-1996
<INVESTMENTS-AT-COST> 75,555,979
<INVESTMENTS-AT-VALUE> 129,978,119
<RECEIVABLES> 176,145
<ASSETS-OTHER> 43,026,604<F1>
<OTHER-ITEMS-ASSETS> 22,635
<TOTAL-ASSETS> 173,203,503
<PAYABLE-FOR-SECURITIES> 599,250
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 43,193,162<F1>
<TOTAL-LIABILITIES> 43,792,412
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 72,250,079
<SHARES-COMMON-STOCK> 29,117
<SHARES-COMMON-PRIOR> 7,431
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2,738,872
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 54,422,140
<NET-ASSETS> 129,411,091
<DIVIDEND-INCOME> 11,557
<INTEREST-INCOME> 575,269
<OTHER-INCOME> 88,459<F2>
<EXPENSES-NET> (1,781,345)
<NET-INVESTMENT-INCOME> (1,106,060)
<REALIZED-GAINS-CURRENT> 2,740,699
<APPREC-INCREASE-CURRENT> 12,902,794
<NET-CHANGE-FROM-OPS> 14,537,433
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (2,392)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 24,894
<NUMBER-OF-SHARES-REDEEMED> (3,288)
<SHARES-REINVESTED> 80
<NET-CHANGE-IN-ASSETS> 35,309,455
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 721,393
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,086,889
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,781,345
<AVERAGE-NET-ASSETS> 149,363,000
<PER-SHARE-NAV-BEGIN> 30.58
<PER-SHARE-NII> (0.48)
<PER-SHARE-GAIN-APPREC> 4.61
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> (0.23)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 34.48
<EXPENSE-RATIO> 2.11
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>SECURITIES VALUED AT $41,597,199 WERE ON LOAN TO BROKERS FROM THE PORTFOLIO.
FOR COLLATERAL, THE PORTFOLIO'S CUSTODIAN RECEIVED $43,026,604 IN CASH.
<F2>SECURITY LENDING INCOME THROUGH AUGUST 31, 1996.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
STATEMENT OF ASSETS AND LIABILITIES, STATEMENT OF OPERATIONS, AND STATEMENT OF
CHANGES IN NET ASSETS FOUND ON PAGES 36 THROUGH 54 OF THE FORTIS STOCK FUNDS
ANNUAL SHAREHOLDER REPORT.
</LEGEND>
<CIK> 0000823344
<NAME> FORTIS ADVANTAGE PORTFOLIOS, INC.
<SERIES>
<NUMBER> 2
<NAME> FORTIS ADVANTAGE CAPITAL APPRECIATION PORTFOLIO (CLASS H)
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> AUG-31-1996
<PERIOD-START> SEP-01-1995
<PERIOD-END> AUG-31-1996
<INVESTMENTS-AT-COST> 75,555,979
<INVESTMENTS-AT-VALUE> 129,978,119
<RECEIVABLES> 176,145
<ASSETS-OTHER> 43,026,604<F1>
<OTHER-ITEMS-ASSETS> 22,635
<TOTAL-ASSETS> 173,203,503
<PAYABLE-FOR-SECURITIES> 599,250
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 43,193,162<F1>
<TOTAL-LIABILITIES> 43,792,412
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 72,250,079
<SHARES-COMMON-STOCK> 277,680
<SHARES-COMMON-PRIOR> 69,156
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2,738,872
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 54,422,140
<NET-ASSETS> 129,411,091
<DIVIDEND-INCOME> 11,557
<INTEREST-INCOME> 575,269
<OTHER-INCOME> 88,459<F2>
<EXPENSES-NET> (1,781,345)
<NET-INVESTMENT-INCOME> (1,106,060)
<REALIZED-GAINS-CURRENT> 2,740,699
<APPREC-INCREASE-CURRENT> 12,902,794
<NET-CHANGE-FROM-OPS> 14,537,433
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (25,057)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 222,036
<NUMBER-OF-SHARES-REDEEMED> (14,364)
<SHARES-REINVESTED> 852
<NET-CHANGE-IN-ASSETS> 35,309,455
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 721,393
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,086,889
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,781,345
<AVERAGE-NET-ASSETS> 149,363,000
<PER-SHARE-NAV-BEGIN> 30.58
<PER-SHARE-NII> (0.48)
<PER-SHARE-GAIN-APPREC> 4.61
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> (0.23)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 34.48
<EXPENSE-RATIO> 2.11
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>SECURITIES VALUED AT $41,597,199 WERE ON LOAN TO BROKERS FROM THE PORTFOLIO.
FOR COLLATERAL, THE PORTFOLIO'S CUSTODIAN RECEIVED $43,026,604 IN CASH.
<F2>SECURITY LENDING INCOME THROUGH AUGUST 31, 1996.
</FN>
</TABLE>
KPMG Peat Marwick LLP
4200 Norwest Center
90 South Seventh Street
Minneapolis, MN 55402
Independent Auditors' Report on Internal Accounting
Control
The Board of Directors and Shareholders
Fortis Advantage Portfolios, Inc.
In planning and performing our audit of the financial
statements of Fortis Advantage Portfolios, Inc. for the
year ended August 31, 1996, we considered its internal
control structure, including procedures for safeguarding
securities, in order to determine our auditing procedures
for the purpose of expressing our opinion on thefinancial
statements and to comply with the requirementsof Form
N-SAR, not to provide assurance on the internal control
structure.
The management of the Company is responsible
forestablishing and maintaining a system of
internalaccounting control. In fulfilling this
responsibility, estimates and judgments by management are
required to assess the expected benefits and related
costs of internal control structure policies and
procedures. Two of the objectives of an internal control
structure are to provide management with reasonable, but
not absolute, assurance that assets are safeguarded
against loss from unauthorized use or disposition and
that transactions are executed in accordance with
management's authorization and recorded properly to
permit the preparation of financial statements in
conformity with generally accepted accounting principles.
Because of inherent limitations in any internal control
structure, errors or irregularities may occur and not be
detected. Also, promection of any evaluation of the
structure to future periods is subject to the risk that
it may become inadequate because of changes in conditions
of that the effectiveness of the design and operation may
deteriorate.
Our consideration of the internal control structure would
not necessarily disclose all matters in the internal
control structure that might be material weaknesses under
standards established by the American Institute of
Certified Public Accounts. A material weakness is a
condition in which the design or operation of the
specific internal control structure elements does not
reduce to a relatively low level the risk that errors or
irregularities in amounts that would be material in
relation to the financial statements being audited may
occur and not be detected within a timely period by
employees in the normal course of performing their
assigned functions. However, we noted no matters
involving the internal control structure, including
procedures for safeguarding securities, that we consider
to be a material weakness as defined above as of August
31, 1996.
This report is intended solely for the information and
use of management and the Securities and Exchange
Commission.
/s/ KPMG Peat Marwick LLP
KPMG Peat Marwick LLP
Minneapolis, Minnesota
October 7, 1996
