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SIGNATURE TAMARA L. FAGELY
TITLE TREASURER
<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 9, 10, AND 11 OF THE ANNUAL SHAREHOLDER
REPORT.
</LEGEND>
<CIK> 0000086317
<NAME> FORTIS SECURITIES, INC.
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</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 Securities, Inc.:
In planning and performing our audit of the financial
statements of Fortis Securities, Inc. for the year ended
July 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 July 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
September 6, 1996
SUB-ITEM 77C
The January 31, 1996 N-SAR filing contained all
information relevant to this sub-item for the fiscal year
ending July 31, 1996. A copy of the "Attachment for Sub-
item 77C" to the January 31, 1996 N-SAR is attached for
reference, as an exhibit to this N-SAR, pursuant to
paragraph 3 of the N-SAR instructions.
ATTACHMENT FOR SUB-ITEM 77C
An annual meeting of shareholders was held on December 7,
1995. Three items were submitted for a shareholder vote.
First, the nominated directors were elected by
shareholders (there were no solicitations in opposition
to management's nominees). Second, shareholders ratified
the selection of auditors. Third, shareholders approved
an amendment of the advisory agreement that broadened the
base for calculating a portion of the management fee from
"interest and dividend income" to "investment income."
This final item was approved by a vote of 5,189,715
shares in favor and 996,984 shares against.
