[LOGO]-Registered Trademark-
Asset Allocation Portfolio
Value Fund
Growth &
Income Fund
Capital Fund
Fiduciary Fund
Growth Fund
Capital Appreciation Portfolio
FORTIS
STOCK FUNDS
Annual Report
August 31, 1996
CONTENTS OTHER PRODUCTS AND SERVICES 1 LETTER TO SHAREHOLDERS 3 SCHEDULE OF INVESTMENTS FORTIS ASSET ALLOCATION PORTFOLIO 12 FORTIS VALUE FUND 18 FORTIS GROWTH AND INCOME FUND 21 FORTIS CAPITAL FUND 24 FORTIS FIDUCIARY FUND 27 FORTIS GROWTH FUND 30 FORTIS CAPITAL APPRECIATION PORTFOLIO 33 STATEMENTS OF ASSETS AND LIABILITIES 36 STATEMENTS OF OPERATIONS 38 STATEMENTS OF CHANGES IN NET ASSETS FORTIS ASSET ALLOCATION PORTFOLIO 40 FORTIS VALUE FUND 41 FORTIS GROWTH AND INCOME FUND 42 FORTIS CAPITAL FUND 43 FORTIS FIDUCIARY FUND 44 FORTIS GROWTH FUND 45 FORTIS CAPITAL APPRECIATION PORTFOLIO 46 NOTES TO FINANCIAL STATEMENTS 47 INDEPENDENT AUDITORS' REPORT 55 FEDERAL INCOME TAX INFORMATION 56 BOARD OF DIRECTORS AND OFFICERS 57 TOLL-FREE PERSONAL ASSISTANCE - Shareholder Services - (800) 800-2638, Ext. 3012 - 7:30 a.m. to 5:30 p.m. CST, M-Th - 7:30 a.m. to 5:00 p.m. CST, F TOLL-FREE INFORMATION LINE - For daily account balances, transaction activity or net asset value information - (800) 800-2638, Ext. 4344 |
- 24 hours a day
FOR MORE INFORMATION ABOUT FORTIS FINANCIAL GROUP'S FAMILY OF PRODUCTS, CALL YOUR INVESTMENT REPRESENTATIVE OR THE HOME OFFICE AT (800) 800-2638.
TO ORDER PROSPECTUSES OR SALES LITERATURE FOR ANY FORTIS PRODUCT, CALL (800)
800-2638, EXT. 4579.
HIGHLIGHTS
CLASS A CLASS B CLASS C CLASS H CLASS Z
-------- -------- -------- -------- --------
FOR THE YEAR ENDED AUGUST 31, 1996
FORTIS ASSET ALLOCATION
NET ASSET VALUE PER SHARE:
Beginning of period........................ $ 16.52 $ 16.46 $ 16.41 $ 16.44 --
End of period.............................. $ 16.48 $ 16.40 $ 16.35 $ 16.39 --
TOTAL RETURN................................. 4.73% 4.12% 4.13% 4.19% --
DISTRIBUTIONS PER SHARE:
From net investment income................. $ 0.475 $ 0.395 $ 0.395 $ 0.395 --
From net realized gains on investments..... $ 0.324 $ 0.324 $ 0.324 $ 0.324 --
FOR THE EIGHT-MONTH PERIOD ENDED AUGUST 31,
1996
FORTIS VALUE FUND
NET ASSET VALUE PER SHARE:
Beginning of period........................ $ 10.00 $ 10.00 $ 10.00 $ 10.00 --
End of period.............................. $ 10.75 $ 10.70 $ 10.70 $ 10.70 --
TOTAL RETURN................................. 7.50% 7.00% 7.00% 7.00% --
DISTRIBUTIONS PER SHARE:..................... -- -- -- -- --
FORTIS GROWTH AND INCOME FUND
NET ASSET VALUE PER SHARE:
Beginning of period........................ $ 10.00 $ 10.00 $ 10.00 $ 10.00 --
End of period.............................. $ 10.35 $ 10.32 $ 10.33 $ 10.33 --
TOTAL RETURN................................. 4.11% 3.55% 3.65% 3.65% --
DISTRIBUTIONS PER SHARE:
From net investment income................. $ 0.060 $ 0.035 $ 0.035 $ 0.035 --
FOR THE YEAR ENDED AUGUST 31, 1996
FORTIS CAPITAL FUND
NET ASSET VALUE PER SHARE:
Beginning of period........................ $ 21.22 $ 21.14 $ 21.13 $ 21.14 --
End of period.............................. $ 21.89 $ 21.69 $ 21.68 $ 21.69 --
TOTAL RETURN................................. 3.36% 2.60% 2.60% 2.60% --
DISTRIBUTIONS PER SHARE:
From net investment income................. $ 0.042 -- -- -- --
FORTIS FIDUCIARY FUND
NET ASSET VALUE PER SHARE:
Beginning of period........................ $ 35.54 $ 35.35 $ 35.40 $ 35.35 --
End of period.............................. $ 36.75 $ 36.26 $ 36.32 $ 36.26 --
TOTAL RETURN................................. 4.18% 3.35% 3.38% 3.35% --
DISTRIBUTIONS PER SHARE:
From net realized gains on investments..... $ 0.255 $ 0.255 $ 0.255 $ 0.255 --
FORTIS GROWTH FUND
NET ASSET VALUE PER SHARE:
Beginning of period........................ $ 32.66 $ 32.48 $ 32.49 $ 32.49 $ 31.61*
End of period.............................. $ 32.14 $ 31.75 $ 31.75 $ 31.75 $ 32.18*
TOTAL RETURN................................. 4.09% 3.45% 3.41% 3.41% 1.80%*
DISTRIBUTIONS PER SHARE:
From net realized gains on investments..... $ 1.706 $ 1.706 $ 1.706 $ 1.706 --
FORTIS CAPITAL APPRECIATION
NET ASSET VALUE PER SHARE:
Beginning of period........................ $ 30.67 $ 30.57 $ 30.58 $ 30.58 --
End of period.............................. $ 34.76 $ 34.46 $ 34.48 $ 34.48 --
TOTAL RETURN................................. 14.21% 13.60% 13.62% 13.62% --
DISTRIBUTIONS PER SHARE:
From net realized gains on investments..... $ 0.226 $ 0.226 $ 0.226 $ 0.226 --
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* Period from March 1, 1996 (inception of class) to August 31, 1996.
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 MINNESOTA
SECURITIES PORTFOLIO
TAX-FREE NATIONAL
PORTFOLIO
TAX-FREE NEW YORK
PORTFOLIO
HIGH YIELD PORTFOLIO
Fortis Stock Funds ASSET ALLOCATION
PORTFOLIO
VALUE FUND
GROWTH & INCOME FUND
CAPITAL FUND
FIDUCIARY FUND
GLOBAL GROWTH PORTFOLIO
GROWTH FUND
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
DIVERSIFIED INCOME
SUBACCOUNT
GLOBAL BOND SUBACCOUNT
HIGH YIELD SUBACCOUNT
ASSET ALLOCATION
SUBACCOUNT
GLOBAL ASSET ALLOCATION
SUBACCOUNT
VALUE SUBACCOUNT
GROWTH & INCOME
SUBACCOUNT
S&P 500 INDEX SUBACCOUNT
BLUE CHIP STOCK
SUBACCOUNT
GLOBAL GROWTH SUBACCOUNT
GROWTH STOCK SUBACCOUNT
INTERNATIONAL STOCK
SUBACCOUNT
AGGRESSIVE GROWTH
SUBACCOUNT
Fortune Fixed Annuities SINGLE PREMIUM ANNUITY
FLEXIBLE PREMIUM ANNUITY
Income Annuities GUARANTEED FOR LIFE
GUARANTEED FOR A
SPECIFIED PERIOD
LIFE Wall Street Series FIXED ACCOUNT
INSURANCE PROTECTION Variable Universal Life MONEY MARKET SUBACCOUNT
AND TAX-DEFERRED Insurance U.S. GOVERNMENT
INVESTMENT SECURITIES SUBACCOUNT
OPPORTUNITY DIVERSIFIED INCOME
SUBACCOUNT
GLOBAL BOND SUBACCOUNT
HIGH YIELD SUBACCOUNT
ASSET ALLOCATION
SUBACCOUNT
GLOBAL ASSET ALLOCATION
SUBACCOUNT
VALUE SUBACCOUNT
GROWTH & INCOME
SUBACCOUNT
S&P 500 INDEX SUBACCOUNT
BLUE CHIP STOCK
SUBACCOUNT
GLOBAL GROWTH SUBACCOUNT
GROWTH STOCK SUBACCOUNT
INTERNATIONAL STOCK
SUBACCOUNT
AGGRESSIVE GROWTH
SUBACCOUNT
Adaptable Life
Universal Life
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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 TIME 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.
HOW TO USE THIS REPORT
For a quick overview of the fund's performance during the past year, refer to the Highlights box. The letter from the portfolio manager 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 fund invests, and the pie chart shows a breakdown of the fund's assets by sector. The portfolio changes show the investment decisions your fund manager has made over the period in response to changing market conditions.
The performance chart graphically compares the funds' total return performance with a selected investment index. Remember, however, that an index may reflect the performance of securities the fund may not hold. Also, the index does not deduct sales charges, investment advisory fees and other fund expenses, whereas your fund 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 mutual funds. 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.
ASSET ALLOCATION PORTFOLIO
Photo Stocks, bonds and cash blended to smooth out the highs and lows
VALUE FUND
Photo Quality stocks, inexpensively priced
GROWTH & INCOME FUND
Photo Conservative growth with quarterly dividends
CAPITAL FUND
Photo Long-term growth through larger, established companies
FIDUCIARY FUND
Photo A medley of growth stocks
GROWTH FUND
Photo Medium-sized companies poised to be tomorrow's leaders
CAPITAL APPRECIATION PORTFOLIO
Photo Opportunity through America's entrepreneurs
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Photo
DEAR SHAREHOLDER,
In today's fast-paced world, you deserve solid answers to your investment questions, as well as investment companies with solid reputations and performance. We at Fortis are proud to bring you these solid answers and companies as part of your mutual fund investment.
Of course, it's critical we keep you apprised of your investment's status. Therefore, we offer the annual report for the Fortis Stock Funds, which includes the Asset Allocation Portfolio, Value Fund, Growth & Income Fund, Capital Fund, Fiduciary Fund, Growth Fund and Capital Appreciation Portfolio, for the period ended August 31, 1996.
MARKET REVIEW AND OUTLOOK
Since our report six months ago, financial markets have experienced a greater than normal degree of volatility. This was primarily due to uncertainties about the Federal Reserve Board's interest rate policy and concerns about increased inflationary pressures in the U.S. economy. Equity markets were strong in the face of rising long-term interest rates through mid-May 1996. Over the next several months, however, the stock market experienced a significant correction. In fact, July was one of the most volatile months in recent memory. Yet this correction has apparently helped reduce the level of speculative activity and set the stage for further advances.
FINANCIAL MARKETS MONITOR INFLATION CLOSELY
The financial market's major concerns are the fears about rising wage pressures in a full-employment economy and the outlook for a slowing trend of corporate profit growth through 1997. Other uncertainties include the upcoming election in the United States and the trend toward rising prices in the energy markets. The net result has been a rise in long-term interest rates to levels above 7 percent, a level that has placed pressures on the equity market in the past. These concerns may be overdone to a degree, as the inflationary pressures have yet to materialize in the economy. We expect that financial markets will continue to watch both inflation and direction of interest rates very closely as they directly impact the valuation levels of the equity market.
MODERATELY GROWING ECONOMY ANTICIPATED
Looking longer-term, we continue to be encouraged by the trend of low worldwide inflation and moderate global economic growth. As long as we are in a low inflation environment, valuation levels for equities, although high, are sustainable. Low inflation also means that we are unlikely to experience a severe economic downturn as the Federal Reserve will have a good deal of flexibility in gradually slowing economic activity. We anticipate a moderately growing economy will persist for some time, which should result in continued low inflationary pressures. A slower growing economy is favorable for financial assets because of its benign effect on both inflation and interest rates.
CONTINUED VOLATILITY LIKELY
Looking forward, we expect a continuation of volatility in the financial markets. The equity markets have experienced a tremendous advance in recent years. Investors should not expect that these gains are normal, especially during a period of slowing corporate growth and historically high valuation levels for equities. We expect the market will begin to become more selective in its focus on well-positioned companies that can continue to grow in a low growth environment. Our emphasis is on these types of high quality growth and value companies. Given the recent sharp downside correction in the equity market, it is also likely that investors will focus their attention on larger companies with greater market liquidity.
While this could help the broader market averages in the near term, we continue to focus our efforts on finding companies with exceptional managements and visible growth prospects. We will also increase our efforts to diversify our holdings to help limit specific company risk. The strategy of targeting exceptional companies during a moderately growing global growth period should reward shareholders over time. Valuation levels for high growth companies remain favorable relative to their long-term growth rates.
The following pages take a closer look at each of the Fortis stock funds. As always, we appreciate your investment with Fortis and thank you for your continued support. If you have any questions about the various funds, please call your financial professional or your Fortis shareholder services representative.
Sincerely,
[SIGNATURE] [SIGNATURE]
Dean C. Kopperud James S. Byrd
President Vice President
[SIGNATURE]
Howard H. Hudson
Vice President
September 12, 1996
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PORTFOLIO ALLOCATION AS OF 8/31/96
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Long-Term Debt Securities 50.1% Equity Investments 46.8% Cash Equivalents/Receivables 3.1% |
TOP HOLDINGS AS OF 8/31/96
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
1. Green Tree Financial Corp. 1.9%
2. First Data Corp. 1.8%
3. Sterling Software, Inc. 1.8%
4. WorldCom, Inc. 1.6%
5. Microsoft Corp. 1.6%
Bonds
- -------------------------------------------------------------------
1. FNMA (7.00%) 2025 1.8%
2. Merrill Lynch Mortgage Investors, Inc. (6.815%)
2021 1.8%
3. FNMA (6.50%) 2010 1.7%
4. U.S. Treasury Bond (6.25%) 2001 1.7%
5. Oakwood Mortgage Investors, Inc. (7.10%) 2020 1.5%
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PORTFOLIO CHANGES FOR THE PERIOD ENDED 8/31/96 STOCK ADDITIONS: STOCK ELIMINATIONS: 360 Communications Co. 3Com Corp. Abbott Laboratories Applied Materials, Inc. American International Group, Disney (Walt) Co. Inc. First Financial Management Amgen, Inc. Corp. Banc One Corp. General Instrument Corp. Biovail Corp. Lowe's Companies, Inc. Boatmens Bancshares, Inc. News Corp., Ltd. Preferred ADR Boston Scientific Corp. News Corp., Ltd. ADR Cardinal Health, Inc. Nokia Corp. ADR ConAgra, Inc. Sensormatic Electronics General Electric Co. Silicon Graphics, Inc. Heinz (H.J.) Co. Talbots (The), Inc. Magna International, Inc. Tandy Corp. Nuevo Energy Co. U.S. HealthCare, Inc. Oxford Health Plans, Inc. Philip Morris Companies, Inc. Price/Costco, Inc. Schlumberger, Ltd. Solectron Corp. Sun International Hotels Ltd. Tellabs, Inc. Tucson Electric Power Co. Wackenhut Corp. |
YOUR ASSET ALLOCATION PORTFOLIO
STOCKS, BONDS AND CASH BLENDED TO SMOOTH OUT THE HIGHS AND LOWS
The Asset Allocation Portfolio adjusts its weightings between stocks and bonds as economic and market conditions warrant. At the end of this reporting period, the assets of the fund were closely divided between stock and bond holdings. The current equity allocation continues to be below a longer-term target level of approximately 65 percent.
EQUITY POSITION WELL DIVERSIFIED
Diversified across various economic sectors, our equity focus in the Asset Allocation Portfolio continues to be on larger companies with leading positions and superior future earnings prospects. During the current reporting period, performance was enhanced by holdings in specialty retail, computer software and telecommunications. However, holdings in health maintenance organizations, medical devices and selected technology stocks detracted from performance.
The bond portion of the fund started 1996 with a positive outlook for interest rates. This view was based on weak economic numbers and the Federal Reserve's apparent willingness to lower short-term interest rates. In addition, we entered the year overweighted in corporate bonds and asset-backed securities, as we felt these areas offered better performance opportunities than U.S. Treasury securities.
We continue to be alert to trends in the U.S. economy and their impact on the fixed income and equity markets. If moderate economic growth and subdued inflationary prospects appear likely to continue, this would allow a return to a higher stock to bond relationship in the portfolio.
VALUE OF $10,000 INVESTED JANUARY 4, 1988
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
LEHMAN BROTHERS FORTIS
AGGREGATE BOND INDEX# S&P 500## ASSET ALLOCATION PORTFOLIO CLASS A
01/04/88 10,000 10,000 9,534
88 10,470 10,868 9,554
89 11,853 15,109 11,885
90 12,710 14,356 11,564
91 14,569 18,216 14,078
92 16,533 19,663 15,742
93 18,348 22,640 17,526
94 18,070 23,875 18,182
95 20,131 28,994 21,666
96 20,830 34,270 22,692
Fortis Asset Allocation Portfolio
Average Annual Total Return
Since
1 Year 5 Year January 4, 1988@
Class A* -.24% +8.95% +9.92%
Class A** +4.73% +10.02% +10.54%
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Annual period ended August 31
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions and the reduction due to the maximum sales
charge of 4.75%. Prior to January 1, 1996, the portfolio had a sales charge
of 4.50%, and therefore, those figures do not represent actual performance
that would have been achieved by investing as described above.
** These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions without
adjustment for sales charge.
# 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.
@ Date shares were first offered to the public.
CLASS B, C AND H AVERAGE ANNUAL TOTAL RETURNS
Since
1 Year Inception+
- -------------------------------------------------------------
Class B sharesDiamond +4.12% +12.70%
Class B sharesDiamond Diamond +.52% +10.87%
Class C sharesDiamond +4.13% +12.48%
Class C sharesDiamond Diamond +3.13% +12.48%
Class H sharesDiamond +4.19% +12.61%
Class H sharesDiamond Diamond +.59% +10.78%
|
Past performance is not indicative of future performance. Total returns include
reinvestment of all dividend and capital gains distributions. The performance of
the separate classes (A, B, C, and H) will vary based on the differences in
sales loads and distribution fees paid by shareholders investing in the
different classes. Class A has a maximum sales charge of 4.75%, Class B and H
have a CDSC of 4.00% (with a waiver of 10% of the amount
invested) if redeemed within two years of purchase, and Class C has a CDSC of
1.00% if redeemed within one year of purchase.
Diamond Without CDSC.
Diamond With CDSC. Assumes redemption on August 31, 1996.
Diamond
+ Since November 14, 1994 -- Date shares were first offered to the public.
COMPOSITION BY INDUSTRY
AS OF 8/31/96
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Other 41.0% Cash Equivalents/Receivables 12.0% Office Equipment and Supplies 6.6% Broadcasting 5.9% Food 5.7% Retail-Department Stores 4.7% Chemicals-Specialty 4.3% Electronic-Semiconductor and Capacitator 4.2% Oil-Crude Petroleum and Gas 3.4% Real Estate-Investment Trust 3.2% Retail-Specialty 3.0% Drugs 3.0% Banks 3.0% |
TOP 10 HOLDINGS AS OF 8/31/96
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
1. Columbia/HCA Health 2.7%
2. Federated Department Stores, Inc. 2.6%
3. Internat'l Business Machines Corp. 2.5%
4. General Electric Co. 2.4%
5. Avnet, Inc 2.3%
6. Pitney Bowes, Inc. 2.3%
7. Mallinckrodt Group 2.3%
8. Williams Companies, Inc. 2.3%
9. Comcast Corp. 2.2%
10. Schering-Plough Corp. 2.2%
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CLASS B, C AND H TOTAL RETURNS
Since
Inception+
- --------------------------------------------------
Class B sharesDiamond +7.00%
Class B sharesDiamond Diamond +3.40%
Class C sharesDiamond +7.00%
Class C sharesDiamond Diamond +6.00%
Class H sharesDiamond +7.00%
Class H sharesDiamond Diamond +3.40%
|
Past performance is not indicative of future performance. Total returns include
reinvestment of all dividend and capital gains distributions. The performance of
the separate classes (A, B, C, and H) will vary based on the differences in
sales loads and distribution fees paid by shareholders investing in the
different classes. Class A has a maximum sales charge of 4.75%, Class B and H
have a CDSC of 4.00% (with a waiver of 10% of the amount invested) if redeemed
within two years of purchase, and Class C has a CDSC of 1.00% if redeemed within
one year of purchase.
Diamond Without CDSC.
Diamond With CDSC. Assumes redemption on August 31, 1996.
Diamond
+ Shares were first offered to the public January 2, 1996.
YOUR VALUE FUND
QUALITY STOCKS, INEXPENSIVELY PRICED
The Fortis Value Fund opened to investors on January 2, 1996, and was well-positioned to take advantage of current market conditions. The fund achieved a strong, positive return consistent with the broad market averages during its first eight months in existence.
CHOPPY, UPWARD PROGRESS
While satisfactory, the stock market's upward progress has been choppy and characterized by wide disparities in the performance of individual stocks and sectors. For example, toward the end of 1995 and through the beginning of 1996, weakening economic indicators persuaded Wall Street that the economy probably was sliding into recession. Investors disposed of their investments in cyclical companies in favor of defensive investments, such as healthcare and consumer staples companies. Consistent with Wall Street's expectations, the common shares of many cyclical companies reached valuation levels premised on an imminent recession. But contrary to all expectations, subsequent economic indicators revealed robust economic growth. As fears of recession evaporated, investors quickly sold their defensive stocks, which tend to have less volatile earnings, and moved back into cyclical stocks. However, Wall Street's preferences once again appear to be swinging the other way, with investors shifting back into defensive stocks as concerns grow about the sustainability of the business cycle.
CYCLICAL INVESTMENT STRATEGY SUCCESSFUL
At the beginning of the year, we agreed with the investment community that the business cycle had matured, but did not believe in an imminent recession. Consequently, we invested more heavily in cyclical stocks (retail, chemicals and capital goods) on the theory that their prices largely reflected the worst that could happen. Although we were early, our strategy paid off in the first half. As cyclical stocks have become more popular, we have steadily reduced our exposure to those kinds of investments and focused on defensive stocks instead.
Looking forward, our main concern is that profit margins are near their peak for the business cycle. With profit margins in the next few years more likely to decline than rise, growing earnings will probably become scarce. In this environment, we are finding it increasingly difficult to identify companies that satisfy our primary buy criteria of having accelerating earnings over the next few years, forcing us to rely more heavily on our secondary criteria of finding companies that are priced reasonably in relation to their long-term growth rates. As a result, our disciplines have led us to invest more heavily in defensive stocks.
VALUE OF $10,000 INVESTED JANUARY 2, 1996
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
FORTIS VALUE FUND
S&P 500*** CLASS A
1/2/96 10,000 9,525
96 10,700 10,239
Fortis Value Fund
Total Return
Since
January 2, 1996@
Class A* +2.39%
Class A** +7.50%
|
Fiscal period ended August 31
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions and the reduction due to the maximum sales
charge of 4.75%.
** These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions without
adjustment for sales charge.
*** An unmanaged index of 500 common stocks.
@ Date shares were first offered to the public.
COMPOSITION BY INDUSTRY
AS OF 8/31/96
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Cash Equivalents/Receivables 20.2% Other 16.4% Finance Services 11.2% Drugs 9.6% Utilities-Telephone 9.5% Natural Gas Transmissions 9.1% Oil-Crude Petroleum and Gas 5.1% Food 4.1% Banks 4.0% Tobacco 2.9% Diversified Companies 2.8% Machinery-Oil and Well 2.7% Publishing 2.4% |
TOP 10 HOLDINGS AS OF 8/31/96
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
1. Pharmacia & UpJohn, Inc. 2.4%
2. Household International, Inc. 2.3%
3. Boatmens Bancshare, Inc. 2.1%
4. Heinz (H.J.) Co. 2.1%
5. Exxon Corp. 2.0%
6. ConAgra, Inc. 2.0%
7. Sonat, Inc. 2.0%
8. Minnesota Mining and Manufacturing Co. 2.0%
9. El Paso Natural Gas Co. 1.9%
10. Williams Companies, Inc. 1.9%
|
CLASS B, C AND H TOTAL RETURNS
Since
Inception+
- --------------------------------------------------
Class B sharesDiamond +3.55%
Class B sharesDiamond Diamond -.05%
Class C sharesDiamond +3.65%
Class C sharesDiamond Diamond +2.65%
Class H sharesDiamond +3.65%
Class H sharesDiamond Diamond +.05%
|
Past performance is not indicative of future performance. Total returns include
reinvestment of all dividend and capital gains distributions. The performance of
the separate classes (A, B, C, and H) will vary based on the differences in
sales loads and distribution fees paid by shareholders investing in the
different classes. Class A has a maximum sales charge of 4.75%, Class B and H
have a CDSC of 4.00% (with a waiver of 10% of the amount invested) if redeemed
within two years of purchase, and Class C has a CDSC of 1.00% if redeemed within
one year of purchase.
Diamond Without CDSC.
Diamond With CDSC. Assumes redemption on August 31, 1996.
Diamond
+ Shares were first offered to the public January 2, 1996.
YOUR GROWTH & INCOME FUND
CONSERVATIVE GROWTH WITH QUARTERLY DIVIDENDS
The Growth & Income Fund, which focuses on dividend-paying companies with earnings growth potential, is well diversified with exposure to most economic sectors. Currently, larger concentrations may be found in the energy, financial and healthcare sectors. Over the period in review, the fund's positive performance was enhanced by selective holdings in energy and ethical drugs, while telephone utilities detracted from performance. Under-representation in technology stocks, due to lack of yield considerations, also hurt as this sector had relative outperformance.
POISED FOR FUTURE OPPORTUNITIES
Concerns about the strength of the U.S. economy and the Federal Reserve's response to such growth have raised investor caution levels after the long advance in the market. Some profit taking is likely, particularly given the historic low dividend yield on the equity market. The fund currently has an above average cash position to take advantage of opportunities in the period ahead.
VALUE OF $10,000 INVESTED JANUARY 2, 1996
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
FORTIS GROWTH & INCOME FUND
S&P 500*** CLASS A
01/02/96 10,000 9,525
96 10,700 9,916
Fortis Growth & Income Fund
Total Return
Since
January 2, 1996@
Class A* -.84%
Class A** +4.11%
|
Fiscal period ended August 31
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions and the reduction due to the maximum sales
charge of 4.75%.
** These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions without
adjustment for sales charge.
*** An unmanaged index of 500 common stocks.
@ Date shares were first offered to the public.
PORTFOLIO COMPOSITION BY INDUSTRY AS OF 8/31/96
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Other 16.2% Cash Equivalents/Receivables 15.7% Computer-Software 11.2% Retail-Specialty 10.8% Finance Services 8.6% Telecommunications 7.6% Business Services and Supplies 6.6% Telephone Services 5.7% Health Care Services 5.6% Toys 4.6% Retail-Department Stores 3.8% Medical Technology 3.6% |
TOP 10 HOLDINGS AS OF 8/31/96
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
1. Mattel, Inc. 4.6%
2. First Data Corp. 4.1%
3. Oracle Corp. 3.9%
4. Microsoft Corp. 3.7%
5. WorldCom, Inc. 3.2%
6. Green Tree Financial Corp. 3.2%
7. Cisco Systems, Inc. 3.1%
8. Home Depot, Inc. 3.1%
9. Federal National Mortgage Association 2.8%
10. MBNA Corp. 2.6%
|
PORTFOLIO CHANGES FOR THE PERIOD ENDED 8/31/96 ADDITIONS: ELIMINATIONS: 360 Communications Co. Applied Materials, Inc. American International Group, Disney (Walt) Co. Inc. First Financial Management Amgen, Inc. Corp. Biovail Corp. Intl. General Instrument Corp. Boston Scientific Corp. Lowe's Companies, Inc. Cardinal Health, Inc. Nokia Corp. ADR Magna International, Inc. Sensormatic Electronics Corp. Nuevo Energy Co. Silicon Graphics, Inc. Oxford Health Plans, Inc. Talbots (The), Inc. Schlumberger, Ltd. Tandy Corp. Sterling Software, Inc. U.S. HealthCare, Inc. Sun International Hotels Ltd. Vodafone Group plc ADR Tucson Electric Power Co. Wackenhut Corp. |
YOUR CAPITAL FUND
LONG-TERM GROWTH THROUGH LARGER, ESTABLISHED COMPANIES
The Capital Fund invests primarily in large capitalization companies that exhibit above average growth characteristics. Faster growing companies tend to sell at higher prices, which leads to the overall portfolio's volatility to be above average, as well. The Capital Fund is diversified among many industry sectors, with its heaviest weightings currently in technology, specialty retailing and healthcare.
PERIOD MARKED BY UNUSUAL VOLATILITY
During this reporting period, the fund's positive performance was helped by relative positions in technology and retailing, while the health services area detracted from overall results. The period was marked by unusual volatility as investors had to cope with a rather sharp back-up in interest rates and concerns about future Federal Reserve policy with a growing economy.
Going forward, more volatility is likely as investors continue to grapple over the strength of the U.S. economy. We continue to hold steadfast in our investment philosophy of embracing those companies that hold leading positions in their industries with growth prospects distinctly above average.
VALUE OF $10,000 INVESTED SEPTEMBER 1, 1971
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
S&P 500*** FORTIS CAPITAL FUND CLASS A
9/1/71 10,000 9,283
72 11,553 11,157
73 11,169 9,989
74 8,045 7,569
75 10,145 8,775
76 12,493 10,185
77 12,270 9,786
78 13,802 12,394
79 15,406 13,699
80 18,199 19,522
81 19,160 22,034
82 19,795 26,093
83 28,480 40,441
84 30,243 39,085
85 35,868 45,126
86 49,818 64,766
87 67,024 82,378
88 55,120 63,494
89 76,626 91,337
90 72,809 86,001
91 92,383 110,463
92 99,722 122,352
93 114,821 131,994
94 121,082 145,928
95 147,043 177,294
96 173,801 183,253
Fortis Capital Fund
Average Annual Total Return
1 Year 5 Year 10 Year 25 Years
Class A* -1.55% 9.58% 10.42% 11.45%
Class A** 3.36% 10.65% 10.96% 11.56%
|
Annual period ended August 31
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions and the reduction due to the maximum sales
charge of 4.75%. Prior to January 1, 1990, the portfolio had a sales charge
of 8.50%, and therefore, those figures do not represent actual performance
that would have been achieved by investing as described above.
** These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions without
adjustment for sales charge.
*** An unmanaged index of 500 common stocks.
CLASS B, C AND H AVERAGE ANNUAL TOTAL RETURNS
Since
1 Year Inception+
- -------------------------------------------------------------
Class B sharesDiamond +2.60% +12.65%
Class B sharesDiamond Diamond -1.00% +10.82%
Class C sharesDiamond +2.60% +12.62%
Class C sharesDiamond Diamond +1.60% +12.62%
Class H sharesDiamond +2.60% +12.65%
Class H sharesDiamond Diamond -1.00% +10.82%
|
Past performance is not indicative of future performance. Total returns include
reinvestment of all dividend and capital gains distributions. The performance of
the separate classes (A, B, C, and H) will vary based on the differences in
sales loads and distribution fees paid by shareholders investing in the
different classes. Class A has a maximum sales charge of 4.75%, Class B and H
have a CDSC of 4.00% (with a waiver of 10% of the amount
invested) if redeemed within two years of purchase, and Class C has a CDSC of
1.00% if redeemed within one year of purchase.
Diamond Without CDSC.
Diamond With CDSC. Assumes redemption on August 31, 1996.
Diamond
+ Since November 14, 1994 -- Date shares were first offered to the public.
PORTFOLIO COMPOSITION BY INDUSTRY AS OF 8/31/96
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Other 18.4% Computer-Software 16.0% Cash Equivalents/Receivables 11.9% Retail-Specialty 9.7% Finance Services 7.5% Telecommunications 7.5% Business Services and Supplies 6.0% Health Care Services 5.6% Telephone Services 5.6% Toys 4.3% Hotel and Gaming 3.9% Medical Technology 3.6% |
TOP 10 HOLDINGS AS OF 8/31/96
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
1. Mattel, Inc. 4.3%
2. Oracle Corp. 3.8%
3. Microsoft Corp. 3.5%
4. First Data Corp. 3.5%
5. Sterling Software, Inc. 3.4%
6. Cisco Systems, Inc. 3.2%
7. Home Depot, Inc. 3.1%
8. WorldCom, Inc. 3.0%
9. BMC Software, Inc. 2.9%
10. Federal National Mortgage Association 2.6%
|
PORTFOLIO CHANGES FOR THE PERIOD ENDED 8/31/96 ADDITIONS: ELIMINATIONS: 360 Communications Co. Applied Materials, Inc. American International Group, Compaq Computer Corp. Inc. Disney (Walt) Co. Amgen, Inc. EMC Corp. Biovail Corp. Intl. First Financial Management Boston Scientific Corp. Corp. Cardinal Health, Inc. General Instrument Corp. Cascade Communications Corp. Harrah's Entertainment, Inc. HFS, Inc. Lowe's Companies, Inc. LCI International, Inc. Nokia Corp. ADR Magna International, Inc. Sensormatic Electronics Corp. Nuevo Energy Co. Silicon Graphics, Inc. Oxford Health Plans, Inc. Talbots (The), Inc. Schlumberger, Ltd. Tandy Corp. Steris Corp. U.S. HealthCare, Inc. Sun International Hotels Ltd. Tucson Electric Power Co. Wackenhut Corp. |
YOUR FIDUCIARY FUND
A MEDLEY OF GROWTH STOCKS
The Fiduciary Fund invests in a mix of medium and large capitalization growth companies. Regardless of their size, companies selected for this portfolio have leading positions in their respective field and earnings growth rates substantially above average. The fund is well diversified with positions in many economic sectors. Currently, the fund's larger economic concentrations are in technology, specialty retailing and healthcare. Despite volatile market conditions during the period under review, the fund realized a positive return. Selected retailing and financial holdings enhanced its performance, while positions in health services detracted from the overall results.
GROWTH STOCKS SEEK ABOVE AVERAGE RETURNS
Looking forward, we continue to expect relatively high volatility in the market as investors focus on the strength of the U.S. economy. Too strong a rate of growth is likely to elicit a higher interest rate response from the Federal Reserve. Interest rate levels are important as they tend to have a greater impact on higher priced stocks. We continue to emphasize growth stocks as they have consistently produced above average investment returns over the long term.
VALUE OF $10,000 INVESTED JANUARY 2, 1982
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
S&P 500*** FORTIS FIDUCIARY FUND CLASS A
1/2/82 10,000 9,430
82 10,165 10,328
83 14,625 16,236
84 15,530 16,073
85 18,418 19,081
86 25,582 28,211
87 34,417 35,819
88 28,304 27,359
89 39,348 39,138
90 37,388 36,786
91 47,439 47,291
92 51,208 52,151
93 58,961 57,667
94 62,176 63,529
95 75,507 77,956
96 89,247 81,217
Fortis Fiduciary Fund
Average Annual Total Return
Since
1 Year 5 Year 10 Year January 2, 1982@
Class A* -.77% +10.34% +10.61% +15.35%
Class A** +4.18% +11.42% +11.15% +15.74%
|
Annual period ended August 31
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions and the reduction due to the maximum sales
charge of 4.75%. Prior to March 1, 1992, the portfolio had a sales charge
of 4.50%, and therefore, those figures do not represent actual performance
that would have been achieved by investing as described above.
** These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions without
adjustment for sales charge.
*** An unmanaged index of 500 common stocks.
@ Date shares were first offered to the public.
CLASS B, C AND H AVERAGE ANNUAL TOTAL RETURNS
Since
1 Year Inception+
- -------------------------------------------------------------
Class B sharesDiamond +3.35% +13.96%
Class B sharesDiamond Diamond -.25% +12.15%
Class C sharesDiamond +3.38% +14.07%
Class C sharesDiamond Diamond +2.38% +14.07%
Class H sharesDiamond +3.35% +13.96%
Class H sharesDiamond Diamond -.25% +12.15%
|
Past performance is not indicative of future performance. Total returns include
reinvestment of all dividend and capital gains distributions. The performance of
the separate classes (A, B, C, and H) will vary based on the differences in
sales loads and distribution fees paid by shareholders investing in the
different classes. Class A has a maximum sales charge of 4.75%, Class B and H
have a CDSC of 4.00% (with a waiver of 10% of the amount invested) if redeemed
within two years of purchase, and Class C has a CDSC of 1.00% if redeemed within
one year of purchase.
Diamond Without CDSC.
Diamond With CDSC. Assumes redemption on August 31, 1996.
Diamond
+ Since November 14, 1994 -- Date shares were first offered to the public.
PORTFOLIO COMPOSITION BY INDUSTRY AS OF 8/31/96
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Other 17.5% Computer-Software 16.9% Cash Equivalents/Receivables 12.2% Computer-Communications Equipment 10.8% Telecommunication-Equipment 8.6% Retail-Specialty 8.2% Finance Services 7.8% Health Care Services 6.6% Telephone Services 5.9% Restaurants and Franchising 5.5% |
TOP 10 HOLDINGS AS OF 8/31/96
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
1. Cisco Systems, Inc. 4.4%
2. Tellabs, Inc. 4.3%
3. Oracle Corp. 3.8%
4. Microsoft Corp. 3.7%
5. BMC Software, Inc. 3.0%
6. Parametric Technology Corp. 2.9%
7. 3Com Corp. 2.9%
8. WorldCom, Inc. 2.8%
9. CUC International, Inc. 2.3%
10. Lone Star Steakhouse & Saloon, Inc. 2.2%
|
PORTFOLIO CHANGES FOR THE PERIOD ENDED 8/31/96 ADDITIONS: ELIMINATIONS: AccuStaff, Inc. American Power Conversion Advanta Corp. Corp. Andrew Corp. Applied Materials, Inc. Ascend Communications, Inc. Compaq Computer Corp. Capital One Financial Corp. Cypress Semiconductor Corp. Cascade communications Corp. DSC Communications Corp. First Data Corp. EMC Corp. First USA, Inc. First Financial Management FORE Systems, Inc. Corp. General Nutrition Companies, Forest Laboratories, Inc. Inc. Harrah's Entertainment, Inc. Genzyme Corp. Lam Research Corp. Green Tree Financial Corp. Lowe's Companies, Inc. HFS, Inc. Medaphis Corp. Input/Output, Inc. Micron Technology, Inc. LCI International, Inc. Mobile Telecommunications MedPartners/Mullikin, Inc. Technologies Corp. PhyCor, Inc. Motorola, Inc. Starbucks Corp. Nokia Corp. ADR Steris Corp. Sensormatic Electronics Corp. Sterling Software, Inc. U.S. HealthCare, Inc. Sunglass Hut International, Vencor, Inc. Inc. U.S. Robotics Corp. |
YOUR GROWTH FUND
MEDIUM-SIZED COMPANIES POISED TO BE TOMORROW'S LEADERS
The recent performance of the Fortis Growth Fund was impacted by the downdraft in the market which occurred in July. Most stocks were affected, but particularly those of high growth nature, in which this fund invests. Nevertheless, the fund generated a positive return for the fiscal year, despite the fact that interest rates rose significantly during the period, a normally unfavorable environment for stock prices.
STRONG FLOW OF INVESTMENT DOLLARS
Offsetting the rise in rates in this period of time has been the strong flow of funds for investment, mostly by individuals, into mutual funds and into company profit sharing plans. Also, corporations have continued to report unexpectedly strong earnings in recent quarters.
TECHNOLOGY CONTINUES TO PLAY IMPORTANT ROLE
The portfolio rose along with stocks in general and benefited from its large holding of technology stocks. However, during the first half, we took advantage of these gains and reduced our technology positions by redirecting profits into other areas.
We believe that investing in technology will remain a major thrust for companies and consumers around the world, so technology will remain an important part of the portfolio. Nevertheless, we believe it is prudent at the current relatively high level to the stock market to lower our exposure to this volatile segment and diversify holdings across a wider list of industries and companies. Among these areas, new or expanded positions have been taken in a variety of business services, including telecommunications, financial, outsourcing and energy.
VALUE OF $10,000 INVESTED MARCH 31, 1963
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
FORTIS GROWTH FUND
AVERAGE ANNUAL TOTAL RETURN
SINCE
1 YEAR 5 YEAR 10 YEAR MARCH 31, 1963@
Class A* -0.85% +9.24% +11.32% +13.65%
Class A** +4.09% +10.31% +11.86% +13.82%
S&P 500*** Fortis Growth Fund Class A
4/63 10,000 10,099
64 12,048 10,931
65 13,957 13,119
66 15,019 14,479
67 14,794 22,377
68 15,726 26,486
69 17,810 23,742
70 16,793 18,352
71 18,832 25,413
72 21,392 30,209
73 23,062 24,494
74 20,550 18,759
75 18,270 23,097
76 23,239 26,701
77 24,211 28,161
78 22,196 41,128
79 25,886 48,772
80 32,225 70,320
81 39,136 84,142
82 35,585 95,822
83 49,146 150,814
84 54,494 144,130
85 65,783 161,092
86 86,083 234,978
87 111,448 302,503
88 108,397 220,640
89 121,271 336,834
90 144,108 331,778
91 165,234 441,372
92 191,614 462,216
93 211,903 567,067
94 229,578 545,679
95 246,531 692,573
96 332,091 720,934
|
Annual period ended August 31
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions and the reduction due to the maximum sales
charge of 4.75%. Prior to January 1, 1990, the portfolio had a higher sales
charge of 8.50%, and therefore, those figures do not represent actual
performance that would have been achieved by investing as described above.
** These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions without
adjustment for sales charge.
*** An unmanaged index of 500 common stocks.
@ Date shares were first offered to the public.
CLASS B, C, H AND Z AVERAGE ANNUAL TOTAL RETURNS
Since
1 Year Inception+
- ---------------------------------------------------------------
Class B sharesDiamond +3.45% +16.97%
Class B sharesDiamond Diamond -.15% +15.19%
Class C sharesDiamond +3.41% +16.97%
Class C sharesDiamond Diamond +2.41% +16.97%
Class H sharesDiamond +3.41% +16.97%
Class H sharesDiamond Diamond -.19% +15.19%
Class Z share -- +1.80%++
|
Past performance is not indicative of future performance. Total returns include
reinvestment of all dividend and capital gains distributions. The performance of
the separate classes (A, B, C, H and Z) will vary based on the differences in
sales loads and distribution fees paid by shareholders investing in the
different classes. Class A has a maximum sales charge of 4.75%, Class B and H
have a CDSC of 4.00% (with a waiver of 10% of the amount invested) if redeemed
within two years of purchase,
and Class C has a CDSC of 1.00% if redeemed within one year of purchase. Class Z
has no sales charge or CDSC.
Diamond Without CDSC.
Diamond With CDSC. Assumes redemption on August 31, 1996.
Diamond
+ Since November 14, 1994 -- Date shares were first offered to the public.
++ Total return since March 1, 1996 -- Date shares were first offered to the
public.
COMPOSITION BY INDUSTRY
AS OF 8/31/96
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Other 15.5% Cash Equivalents/Receivables 12.9% Business Services and Supplies 12.8% Computer-Software 12.3% Retail-Specialty 9.6% Telephone Services 9.1% Health Care Services 7.8% Restaurants and Franchising 6.5% Machinery-Oil and Well 5.9% Computer-Communications Equipment 4.4% Telecommunications 3.2% |
TOP 10 HOLDINGS AS OF 8/31/96
Percent of
Stocks Net Assets
- -------------------------------------------------------------------
1. Input/Output, Inc. 4.5%
2. APAC TeleServices, Inc. 3.7%
3. Acxiom Corp. 3.5%
4. Cisco Systems, Inc. 3.2%
5. LCI International, Inc. 3.0%
6. Gadzooks Inc. 2.4%
7. United Waste Systems, Inc. 2.4%
8. West Marine Inc. 2.3%
9. Legato Systems, Inc. 2.2%
10. Parametric Technology Corp. 2.2%
|
CLASS B, C AND H AVERAGE ANNUAL TOTAL RETURNS
Since
1 Year Inception+
- --------------------------------------------------------------
Class B sharesDiamond +13.60% +27.43%
Class B sharesDiamond Diamond +10.00% +25.77%
Class C sharesDiamond +13.62% +27.46%
Class C sharesDiamond Diamond +12.62% +27.46%
Class H sharesDiamond +13.62% +27.46%
Class H sharesDiamond Diamond +10.02% +25.80%
|
Past performance is not indicative of future performance. Total returns include
reinvestment of all dividend and capital gains distributions. The performance of
the separate classes (A, B, C, and H) will vary based on the differences in
sales loads and distribution fees paid by shareholders investing in the
different classes. Class A has a maximum sales charge of 4.75%, Class B and H
have a CDSC of 4.00% (with a waiver of 10% of the amount invested) if redeemed
within two years of purchase, and Class C has a CDSC of 1.00% if redeemed within
one year of purchase.
Diamond Without CDSC.
Diamond With CDSC. Assumes redemption on August 31, 1996.
Diamond
+ Since November 14, 1994 -- Date shares were first offered to the public.
YOUR CAPITAL APPRECIATION PORTFOLIO
OPPORTUNITY THROUGH AMERICA'S ENTREPRENEURS
Good stock selection carried the fund to solid, positive performance in the past year. This was a volatile 12 months, especially for the over-the-counter (OTC) stocks in which this fund primarily invests.
FAVORED STOCK HOLDINGS ADDED
We have attempted to lessen some of the risks by increasing the number of holdings. The level of cash was raised early this spring as valuations were getting high and speculation more apparent. A sharp market selloff in June and July was used as an opportunity to add holdings of some favored stocks, and the portfolio subsequently has shown a nice recovery. The portfolio has been well diversified in various segments of the economy, including business services, retail, emerging telephone companies, technology and healthcare-related.
Historically, investing in smaller companies can be more volatile over the short term as a result of their higher relative valuations. We expect this tendency to continue through the coming year. It is our belief that investors with patience and a longer time horizon may be rewarded by the capital appreciation of the leading growth companies of the future.
VALUE OF $10,000 INVESTED JANUARY 4, 1988
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
FORTIS CAPITAL APPRECIATION PORTFOLIO
AVERAGE ANNUAL TOTAL RETURN
SINCE
1 YEAR 5 YEAR JANUARY 4, 1988@
Class A* +8.78% +14.21% +16.68%
Class A** +14.21% +15.33% +17.33%
Fortis Capital Appreciation Portfolio
S&P 500*** Class A
1/4/1988 10,000 9,525
88 10,868 10,373
89 15,109 14,853
90 14,356 14,329
91 18,216 18,634
92 19,663 18,685
93 22,640 25,415
94 23,875 23,730
95 28,994 33,294
96 34,270 38,024
|
Annual period ended August 31
Past performance is not indicative of future performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
* SEC defined total returns, including reinvestment of all dividend and
capital gains distributions and the reduction due to the maximum sales
charge of 4.75%. Prior to January 1, 1996, the portfolio had a sales charge
of 4.50%, and therefore, those figures do not represent actual performance
that would have been achieved by investing as described above.
** These are the portfolios total returns during the period, including
reinvestment of all dividend and capital gains distributions without
adjustment for sales charge.
*** An unmanaged index of 500 common stocks.
@ Date shares were first offered to the public.
PORTFOLIO CHANGES FOR THE PERIOD ENDED 8/31/96
ADDITIONS: Indus Group, Inc. Shiva Corp. FTP Software, Inc.
ABR Information Services, Inc. Intermedia Communications, Sterling Commerce, Inc. Genesis Health Ventures, Inc.
Accustaff, Inc. Inc. TeleTech Holdings, Inc. Health Care & Retirement Corp.
APAC TeleServices, Inc. Just for Feet, Inc. Transition Systems, Inc. Hollywood Entertainment Corp.
Apollo Group, Inc. Lernout and Hauspie Speech Westell Technologies Indigo NV
Ascend Communications, Inc. Products N.V. Xylan Corp. Integrated Device Technology,
Aspen Technology, Inc. McLead, Inc. ELIMINATIONS: Inc.
Biochem Pharma, Inc. Mecon, Inc. Alliance Semiconductor Corp. Integrated Silicon Solutions,
Boston Beer Co. (The), Inc. Mossimo, Inc. American Freightways Corp. Inc.
Brooks Fiber Properties, Inc. National Education Corp. Authentic Fitness Corp. IntelCom Group, Inc.
Career Horizons, Inc. Netscape Communications Corp. Avid Technology, Inc. Landmark Graphics Corp.
Cascade Communications Corp. Pairgain Technologies, Inc. Benchmark Electronics, Inc. Macromedia, Inc.
CKS Group, Inc. Parexel International Corp. Books-A-Million, Inc. Medaphis Corp.
Corrections Corp of America Precision Response Corp. Callaway Golf Co. Micro Warehouse Inc.
CUC International, Inc. Pharmaceutical Products Cerner Corp. MIDCOM Communications, Inc.
Cybercash, Inc. Development, Inc. Cheesecake Factory, Inc. Paradigm Technology, Inc.
Gadzooks, Inc. Quality Dining, Inc. Corporate Express, Inc. StrataCom, Inc.
HNC Software, Inc. Quicksiliver, Inc. Franklin Electronic System Software Associates,
ICG Communications, Inc. Rainforest Cafe, Inc. Publishers, Inc. Inc.
Idexx Laboratories, Inc. Romac International, Inc. FSI International, Inc. Trimble Navigation Limited
Scopus Technology, Inc. Ultratech Stepper, Inc.
Seattle Film Works, Inc. Unitrode Corp.
Xilinx, Inc.
|
FORTIS STOCK FUNDS
ASSET ALLOCATION PORTFOLIO
Schedule of Investments
August 31, 1996
COMMON STOCKS-46.83%
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
--------- ------------ -------------
AUTOMOBILE AND MOTOR VEHICLE PARTS-0.69%
22,000 Magna International, Inc. Class A............ $ 990,844 $ 1,061,500
------------ -------------
BANKS-1.72%
39,000 Banc One Corp. (h)........................... 1,404,720 1,496,625
22,000 Boatmens Bancshares, Inc..................... 944,876 1,171,500
------------ -------------
2,349,596 2,668,125
------------ -------------
BIOMEDICS, GENETICS RESEARCH AND DEVELOPMENT-0.49%
13,000 Amgen, Inc. (a).............................. 723,457 757,250
------------ -------------
BUSINESS SERVICES AND SUPPLIES-2.75%
24,000 Ceridian Corp. (a)(h)........................ 1,063,507 1,023,000
36,567 First Data Corp. (h)......................... 1,473,359 2,852,226
24,000 Wackenhut Corp. Class B...................... 575,984 384,000
------------ -------------
3,112,850 4,259,226
------------ -------------
COMPUTER-COMMUNICATIONS EQUIPMENT-1.43%
42,000 Cisco Systems, Inc. (a)...................... 520,547 2,215,500
------------ -------------
COMPUTER-SOFTWARE-5.82%
30,000 Computer Associates International, Inc....... 742,449 1,575,000
20,100 Microsoft Corp. (a).......................... 856,421 2,462,250
63,600 Oracle Corp. (a)(h).......................... 311,130 2,241,900
40,000 Sterling Software, Inc. (a).................. 772,400 2,715,000
------------ -------------
2,682,400 8,994,150
------------ -------------
DRUGS-0.58%
16,000 Abbott Laboratories.......................... 727,120 722,000
6,200 Biovail Corp. Intl. (a)...................... 181,509 186,000
------------ -------------
908,629 908,000
------------ -------------
ELECTRONIC COMPONENTS-0.53%
22,000 Solectron Corp. (a).......................... 839,200 822,250
------------ -------------
ELECTRICAL EQUIPMENT-0.86%
16,000 General Electric Co.......................... 1,378,162 1,330,000
------------ -------------
ELECTRONIC-SEMICONDUCTOR AND CAPACITOR-1.35%
13,500 Intel Corp................................... 526,451 1,077,469
19,000 Motorola, Inc................................ 701,793 1,014,125
------------ -------------
1,228,244 2,091,594
------------ -------------
FINANCE SERVICES-4.97%
54,000 Federal National Mortgage Association........ 1,203,290 1,674,000
16,100 Franklin Resources, Inc...................... 189,578 957,950
82,384 Green Tree Financial Corp. (h)............... 1,036,226 2,862,844
72,000 MBNA Corp.................................... 1,033,494 2,187,000
------------ -------------
3,462,588 7,681,794
------------ -------------
FOOD-1.36%
32,000 ConAgra, Inc. (h)............................ 1,387,673 1,348,000
24,000 Heinz (H.J.) Co.............................. 766,680 756,000
------------ -------------
2,154,353 2,104,000
------------ -------------
HEALTH CARE SERVICES-2.58%
11,000 Cardinal Health, Inc. (h).................... 781,880 807,125
26,000 Columbia/HCA Healthcare Corp. (h)............ 1,092,332 1,465,750
14,000 Oxford Health Plans, Inc. (a)(h)............. 523,875 640,500
7,700 PacifiCare Health Systems, Inc., Class B
(a)(h)..................................... 595,353 619,850
11,700 United Healthcare Corp....................... 580,166 451,912
------------ -------------
3,573,606 3,985,137
------------ -------------
|
Market
Shares Cost (b) Value (c)
--------- ------------ -------------
HOTEL AND GAMING-1.98%
99,000 Mirage Resorts, Inc. (a)(h).................. $ 1,115,820 $ 2,301,750
16,000 Sun International Hotels Ltd. (a)(h)......... 743,590 758,000
------------ -------------
1,859,410 3,059,750
------------ -------------
INSURANCE-1.11%
18,000 American International Group, Inc............ 1,679,463 1,710,000
------------ -------------
MEDICAL TECHNOLOGY-1.60%
29,000 Boston Scientific Corp. (a)(h)............... 1,229,337 1,330,375
22,000 Medtronic, Inc. (and rights) (h)............. 492,656 1,144,000
------------ -------------
1,721,993 2,474,375
------------ -------------
OIL AND GAS FIELD SERVICES-0.49%
9,000 Schlumberger, Ltd. (h)....................... 773,819 759,375
------------ -------------
OIL-CRUDE PETROLEUM AND GAS-0.56%
23,000 Nuevo Energy Co. (a)......................... 797,592 859,625
------------ -------------
PUBLISHING-0.69%
15,700 Scholastic Corp. (a)......................... 810,604 1,063,675
------------ -------------
RETAIL-DEPARTMENT STORES-1.96%
49,000 Kohl's Corp. (a)(h).......................... 957,074 1,862,000
44,000 Wal-Mart Stores, Inc. (h).................... 991,910 1,166,000
------------ -------------
1,948,984 3,028,000
------------ -------------
RETAIL-SPECIALTY-5.74%
40,800 AutoZone, Inc. (a)(h)........................ 783,087 1,111,800
65,000 CUC International, Inc. (a)(h)............... 1,115,912 2,234,375
23,200 Home Depot, Inc.............................. 440,720 1,232,500
50,700 Office Depot, Inc. (a)(h).................... 477,429 804,862
56,000 Pep Boys-Manny Moe & Jack.................... 1,520,663 1,876,000
81,000 Price/Costco, Inc. (a)....................... 1,211,625 1,609,875
------------ -------------
5,549,436 8,869,412
------------ -------------
TELECOMMUNICATION EQUIPMENT-2.23%
94,400 Ericsson (L.M.) Telephone Co., Class B ADR
(h)........................................ 1,146,993 2,177,100
20,000 Tellabs, Inc. (a)............................ 808,395 1,267,500
------------ -------------
1,955,388 3,444,600
------------ -------------
TELEPHONE SERVICES-3.01%
31,000 360 Communications Co. (a)................... 746,303 740,125
50,000 AirTouch Communications, Inc. (a)............ 1,266,280 1,375,000
121,016 WorldCom, Inc. (a)(h)........................ 657,407 2,541,336
------------ -------------
2,669,990 4,656,461
------------ -------------
TOBACCO-0.58%
10,000 Philip Morris Companies, Inc................. 1,056,922 897,500
------------ -------------
TOYS-1.34%
78,488 Mattel, Inc.................................. 694,617 2,070,121
------------ -------------
UTILITIES-ELECTRIC-0.41%
39,500 Tucson Electric Power Co. (a)(h)............. 659,868 636,938
------------ -------------
TOTAL COMMON STOCKS.......................... $46,102,562 $ 72,408,358
------------ -------------
------------ -------------
|
FORTIS STOCK FUNDS
ASSET ALLOCATION PORTFOLIO (CONTINUED)
Schedule of Investments
August 31, 1996
ASSET BACKED SECURITIES-16.47%
- --------------------------------------------------------------------------------
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
----------- ------------- ------------ -------------
COMMERCIAL LOANS-9.47%
$1,496,887 Chase Commercial Mortgage Securities Corp.,
7.60% Ser 1996-1 Class A-1 12-18-2005...... AAA $ 1,513,884 $ 1,496,887
984,237 DLJ Mortgage Acceptance Corp., 7.28% Ser
1996-CF1 Class A-1A 3-13-2028 (f).......... AAA 991,603 978,892
740,091 GS MSC II Protective Life Ser 1996-pl, 7.02%
3-1- 2026.................................. Aaa* 740,044 727,140
2,079,012 J.P. Morgan Commercial Mortgage, 6.47%
1996-C2 Class A 11-25-2027................. AAA 2,002,520 1,962,984
964,561 Merrill Lynch Mortgage Investors, Inc.,
6.7887% Variable Rate Ser 1995-C3 Cl A1
12-26-2025................................. AAA 973,811 941,042
2,817,214 Merrill Lynch Mortgage Investors, Inc.,
6.8151% Variable Rate Ser 1995-C2 Cl A1
6-15-2021.................................. Aaa* 2,829,115 2,823,606
1,750,000 Mortgage Capital Funding, Inc., Ser
1996-MCI-B 7.90% 2-15-2006................. AA+ 1,767,865 1,762,168
470,000 Nationslink Funding Corp., 7.515% Ser 1996-1
Class A2 7-20-2005......................... AAA 470,577 467,687
1,482,792 Nationslink Funding Corp., 7.533% Ser 1996-1
Class A1 9-20-2002......................... AAA 1,497,047 1,487,079
1,100,000 Nomura Asset Securities Corp., 6.68%
Congregate Care Pass thru Certificate Ser
1993-1 Cl A3 12-15-2003.................... A 1,037,925 1,037,094
1,000,000 Structured Asset Securities Corp., 5.944% Ser
96-CFL Cl A1C 2-25-2028.................... AAA 1,000,020 960,605
------------ -------------
14,824,411 14,645,184
------------ -------------
MANUFACTURED HOMES-3.15%
1,500,000 Green Tree Financial Corp., 7.65% Sr Sub Pass
Thru Certificate Ser 1994-1 Cl A5
4-15-2019.................................. Aa2* 1,494,141 1,446,775
1,000,000 Green Tree Financial Corp., 8.35% Sr Sub Pass
Thru Certificate Ser 1994-7 Cl A4
3-15-2020.................................. Aaa* 998,750 1,044,569
2,500,000 Oakwood Mortgage Investors, Inc., 7.10% Ser
1995-A Cl A3 9-15-2020..................... AAA 2,497,656 2,378,530
------------ -------------
4,990,547 4,869,874
------------ -------------
MISCELLANEOUS-0.56%
865,183 Vanderbilt Mortgage & Finance, Inc., 7.00%
Mfg Housing Contract Ser 1994-A Cl A1
7-10-2019.................................. AA 864,642 868,980
------------ -------------
MULTI-FAMILY LOANS-3.29%
1,000,000 DLJ Mortgage Acceptance Corp., 8.80%
Multifamily Mtg Pass Thru Certificate Ser
1993-12
Class B19-18 -2003......................... NR 982,500 992,762
1,500,000 DLJ Mtg Acceptance Corp., 8.50% Multifamily
Mtg Pass Thru Certificate Ser 1994-4 Cl A2
4-18-2001.................................. A 1,528,402 1,521,558
464,411 Fund America Structured Transactions, L.P.,
Collateralized Note, 8.231% Ser 1996-1
Cl A Principal Only 1-1-2033 (f)(g)........ Baa3 334,412 329,151
2,300,000 Paine Webber Mortgage Acceptance Corp. IV,
6.70% Ser 1995-M1 1-15-2007 (f)............ NR 2,273,270 2,232,437
------------ -------------
5,118,584 5,075,908
------------ -------------
TOTAL ASSET BACKED SECURITIES................ $25,798,184 $ 25,459,946
------------ -------------
------------ -------------
|
CORPORATE BONDS-INVESTMENT GRADE-8.56%
- --------------------------------------------------------------------------------
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
----------- ------------- ------------ -------------
AEROSPACE AND EQUIPMENT-0.95%
$1,500,000 Lockheed Martin Corp.,7.25% Note 5-15-2006
(h)........................................ BBB+ $ 1,498,617 $ 1,468,905
------------ -------------
BANKS-2.51%
1,000,000 Advanta National Bank, 6.45% Note
10-30-2000................................. BBB 998,927 964,949
500,000 Banc One Corp., 7.75% 7-15-2025.............. A+ 487,130 484,518
1,000,000 Capital One Bank, 6.83% Med Term Note
8-16-1999.................................. BBB- 1,000,000 989,459
1,500,000 Fleet Financial Group, Inc., 7.125% Sub Note
4-15-2006 (h).............................. BBB+ 1,478,694 1,442,833
------------ -------------
3,964,751 3,881,759
------------ -------------
BROKERAGE AND INVESTMENT-1.58%
1,000,000 Donaldson Lufkin Jenrette, 5.625%
2-15-2016.................................. A- 998,089 933,748
1,000,000 Lehman Brothers Holdings, 8.50% Note
5-1-2007................................... A 1,060,798 1,029,688
500,000 Salomon, Inc., 6.75% Sr Note 2-15-2003....... BBB 499,051 472,365
------------ -------------
2,557,938 2,435,801
------------ -------------
|
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
----------- ------------- ------------ -------------
CHEMICALS-0.24%
$ 250,000 Lyondell Petrochemical, 6.50% Note
2-15-2006.................................. BBB- $ 249,428 $ 229,300
150,000 Lyondell Petrochemical, 7.55% Note
2-15-2026.................................. BBB- 141,959 137,320
------------ -------------
391,387 366,620
------------ -------------
FOREST PRODUCTS-0.41%
600,000 Georgia-Pacific Corp., 9.625% Deb
3-15-2022.................................. BBB- 616,932 634,605
------------ -------------
INDUSTRIAL-0.62%
1,000,000 Olsten Corp., 7.00% Sr Note 3-15-2006........ A- 995,021 958,150
------------ -------------
MEDIA-0.66%
1,000,000 News America Holdings, Inc., 8.875% Sr Note
4-26-2023.................................. BBB 1,028,274 1,018,413
------------ -------------
MISCELLANEOUS-0.36%
500,000 New York (City of), 10.00% General Obligation
Taxable Bond Fiscal 1991 Ser D 8-1-2005.... BBB+ 473,328 562,601
------------ -------------
SUPRANATIONAL-0.62%
1,000,000 Corp Andina De Formento, 7.10% Yankee Bond
2-1-2003................................... BBB 999,384 963,666
------------ -------------
TELECOMMUNICATIONS-0.61%
1,000,000 360 Communications Corp., 7.50% Sr Note
3-1-2006................................... BBB- 997,767 943,497
------------ -------------
TOTAL CORPORATE BONDS - INVESTMENT GRADE..... $13,523,399 $ 13,234,017
------------ -------------
------------ -------------
|
CORPORATE BONDS-NON-INVESTMENT GRADE-6.40%
- --------------------------------------------------------------------------------
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
--------- ------------- ----------- -------------
BROADCASTING-0.32%
$500,000 Sinclair Broadcasting, Inc., 10.00% Sr Sub
Note 9-30-2005............................. B $ 500,000 $ 491,250
----------- -------------
CABLE TELEVISION-1.77%
500,000 Cablevision Systems, Corp., 9.875% Sr Sub
Note 5-15-2006............................. B 484,217 491,250
500,000 Century Communications, Inc., 9.50% Sr Note
3-1-2005................................... BB- 520,452 493,125
500,000 Comcast Corp., 9.125% Sr Sub Note
10-15-2006................................. BB- 516,203 490,625
461,162 Falcon Holding Group, L.P., 11.00% Sr Sub
Note Ser B 9-15-2003 (Interest is
Payable-in-Kind)........................... NR 381,116 414,007
500,000 Groupe Videotron, 10.625% Sr Note
2-15-2005.................................. BB+ 525,887 535,000
500,000 Telewest plc, 11.00% Sr Disc Deb 10-1-2007
(Zero coupon until 10-1-2000, thereafter
11.00%) (e)................................ BB 324,072 308,125
----------- -------------
2,751,947 2,732,132
----------- -------------
CHEMICALS-0.49%
500,000 Arcadian Partners L.P., 10.75% Sr Note Ser B
5-1-2005................................... BB- 493,998 542,500
250,000 Indspec Chemical Corp., 11.50% Sr Sub Disc
Note Ser B 12-1-2003 (Zero coupon until
12-1-1998) (e)............................. BB- 176,982 215,000
----------- -------------
670,980 757,500
----------- -------------
COSMETICS AND SUNDRIES-0.17%
250,000 Revlon Consumer Products, 10.50% Sr Sub Note
2-15-2003.................................. B- 254,072 258,125
----------- -------------
ENERGY-0.34%
500,000 Mesa Operating Co., 10.625% Sr Note
7-1-2006................................... B 504,952 521,250
----------- -------------
FOOD-MISCELLANEOUS-0.34%
500,000 Envirodyne Industries, Inc., 12.00% First
Priority Sr Secured Note 6-15-2000......... B+ 500,000 527,500
----------- -------------
HEALTH CARE SERVICES-0.35%
500,000 Tenet Healthcare Corp., 10.125% Sr Sub Note
3-1-2005................................... B+ 534,177 536,875
----------- -------------
HOTEL AND MOTEL-0.30%
500,000 HMC Acquistion Properties, Inc., 9.00% Sr
Note 12-15-2007............................ NA 500,000 470,000
----------- -------------
|
FORTIS STOCK FUNDS
ASSET ALLOCATION PORTFOLIO (CONTINUED)
Schedule of Investments
August 31, 1996
Standard
& Poor's
Principal Rating Market
Amount (Unaudited) Cost (b) Value (c)
--------- ------------- ----------- -------------
LEISURE TIME-AMUSEMENTS-0.62%
$500,000 Showboat, Inc., 9.25% First Mtg Bond
5-1-2008................................... BB- $ 508,617 $ 485,000
500,000 Trump Atlantic City Associates, 11.25% First
Mtg Bond 5-1-2006.......................... BB- 500,000 480,000
----------- -------------
1,008,617 965,000
----------- -------------
STEEL AND IRON-0.35%
500,000 AK Steel Corp., 10.75% Sr Note 4-1-2004...... BB 545,156 540,000
----------- -------------
TECHNOLOGY-0.33%
500,000 Computervision Corp., 11.375% Sr Sub Note
8-15-1999.................................. B- 513,538 515,000
----------- -------------
TELECOMMUNICATIONS-0.93%
250,000 Arch Communications Group, Inc., 10.72% Sr
Disc Note 3-15-2008 (Zero coupon until
3-15-2001, thereafter 10.875%) (e)......... B- 156,277 131,875
500,000 Nextlink Communications, L.L.C., 12.50% Sr
Note 4-15-2006 (f)......................... NR 500,000 492,500
500,000 Paging Network, Inc., 10.125% Sr Sub Note
8-1-2007................................... B 521,403 505,625
500,000 Teleport Communications, 11.125% Sr Disc Deb
7-1-2007 (Zero coupon until 7-1-2001,
thereafter 11.125%) (e).................... B 297,036 305,000
----------- -------------
1,474,716 1,435,000
----------- -------------
TOBACCO-0.09%
200,000 Liggett Group, Inc., 11.50% Secured Note Ser
B 2-1-1999................................. NR 144,500 146,000
----------- -------------
TOTAL CORPORATE BONDS - NON-INVESTMENT
GRADE...................................... $9,902,655 $ 9,895,632
----------- -------------
----------- -------------
|
U.S. GOVERNMENT SECURITIES-18.65%
- --------------------------------------------------------------------------------
Principal Market
Amount Cost (b) Value (c)
----------- --------------- -------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION-9.19%
MORTGAGE BACKED SECURITIES:
$ 787,611 6.00% 2011................................... $ 768,325 $ 738,139
2,803,350 6.50% 2010................................... 2,779,260 2,689,464
4,703,628 7.00% 2025-2026.............................. 4,617,487 4,474,326
499,803 7.50% 2026................................... 495,830 488,088
1,648,007 8.00% 2025................................... 1,672,985 1,646,977
220,903 9.00% 2016-2021.............................. 218,249 229,324
--------------- -------------
10,552,136 10,266,318
--------------- -------------
NOTE:
2,000,000 6.85% 2000................................... 2,000,000 1,978,296
--------------- -------------
REMIC-PAC'S:
2,000,000 7.00% 2020................................... 1,937,969 1,956,898
--------------- -------------
TOTAL FEDERAL NATIONAL MORTGAGE
ASSOCIATION................................ 14,490,105 14,201,512
--------------- -------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION-2.64%
MORTGAGE BACKED SECURITIES:
1,690,656 7.50% 2022................................... 1,693,826 1,649,974
2,262,514 9.00% 2023................................... 2,336,046 2,359,377
65,308 9.50% 2019................................... 64,777 69,594
--------------- -------------
4,094,649 4,078,945
--------------- -------------
TOTAL GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION................................ 4,094,649 4,078,945
--------------- -------------
|
Principal Market
Amount Cost (b) Value (c)
----------- --------------- -------------
U.S. TREASURY SECURITIES-6.82%
BOND:
$ 865,000 8.125% 2021.................................. $ 964,051 $ 946,904
--------------- -------------
NOTES:
850,000 5.875% 2000.................................. 836,638 827,688
4,780,000 6.25% 2001-2003 (h).......................... 4,732,544 4,668,063
1,715,000 6.375% 1999-2002 (h)......................... 1,721,812 1,696,985
1,095,000 7.00% 2006 (h)............................... 1,126,879 1,099,106
1,290,000 7.125% 1999.................................. 1,314,366 1,310,156
--------------- -------------
9,732,239 9,601,998
--------------- -------------
TOTAL U.S. TREASURY SECURITIES............... 10,696,290 10,548,902
--------------- -------------
TOTAL U.S. GOVERNMENT SECURITIES............. 29,281,044 28,829,359
--------------- -------------
TOTAL LONG TERM INVESTMENTS.................. $ 124,607,844 $ 149,827,312
--------------- -------------
--------------- -------------
|
SHORT-TERM INVESTMENTS-2.87%
- --------------------------------------------------------------------------------
Principal Market
Amount Value
----------- -------------
BANKS-2.77%
$4,283,000 First Trust Money Market Variable Rate Time
Deposit, Current rate -- 5.20%............. $ 4,283,000
-------------
DIVERSIFIED FINANCE-0.10%
162,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.31%...................... 162,000
-------------
TOTAL SHORT-TERM INVESTMENTS................. 4,445,000
-------------
-------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$129,052,844) (B).......................... $ 154,272,312
-------------
-------------
|
(a) Presently not paying dividend income.
(b) At August 31, 1996, the cost of securities for federal income tax purposes
was $129,132,141 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
Unrealized appreciation..................................... $27,412,649 Unrealized depreciation..................................... (2,272,478) - ------------------------------------------------------------------------- Net unrealized appreciation................................. $25,140,171 - ------------------------------------------------------------------------- |
(c) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets. Market value of investments in foreign
securities represents 4.36% of net assets as of August 31, 1996.
(e) The interest rate disclosed for these securities represents the original
effective yields on the date of acquisition.
(f) Securities sold within the terms of private placement memorandums, 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 other
"Accredited Investors". These investments have been identified by portfolio
management as illiquid securities. The portfolio entered into the following
section 144A security transactions: On November 14, 1995 and June 26, 1996,
the portfolio acquired a total of 2,300,000 par of Paine Webber Mortgage
Acceptance Corp. IV due 2007 with a total cost basis of $2,273,270. On
March 29, 1996 the portfolio acquired 464,411 par of Fund America
Structured Transactions due 2033 with a cost basis of $334,412. On May 17,
1996 the portfolio acquired 984,237 par of DLJ Mortgage Acceptance Corp.
due 2028 with a cost basis of $991,603. On April 19, 1996 the portfolio
acquired 500,000 par of Nextlink Communications, L.L.C. due 2006 with a
cost basis of $500,000. The value of these securities at August 31, 1996,
is $4,032,981 which represents 2.61% of total net assets.
(g) The interest rate disclosed for principal only strips represent effective
yields at August 31, 1996, based upon the estimated timing of future cash
flows.
(h) Security is fully or partially on loan at August 31, 1996. See Note 1 of
accompanying Notes to Financial Statements.
* Moody's Rating
FORTIS STOCK FUNDS
VALUE FUND
Schedule of Investments
August 31, 1996
COMMON STOCKS-86.54%
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
ADVERTISING-PUBLIC RELATIONS-2.13%
5,800 Interpublic Group of Companies, Inc.......... $ 255,569 $ 262,450
------------ ------------
AEROSPACE AND EQUIPMENT-2.67%
1,700 Boeing Co.................................... 135,000 153,850
3,500 McDonnell Douglas Corp....................... 157,971 175,437
------------ ------------
292,971 329,287
------------ ------------
AIR FREIGHT-1.88%
3,100 Federal Express Corp. (a).................... 228,015 232,112
------------ ------------
BANKS-3.03%
6,800 Bank of New York Co., Inc.................... 165,721 189,550
2,200 Citicorp..................................... 157,038 183,150
------------ ------------
322,759 372,700
------------ ------------
BROADCASTING-5.87%
17,400 Comcast Corp., Special Class A............... 301,166 280,575
16,300 Tele-Communications, Inc. (a)................ 302,950 242,462
6,300 Viacom, Inc. Class B (a)..................... 246,702 198,450
------------ ------------
850,818 721,487
------------ ------------
BROKERAGE AND INVESTMENT-1.34%
2,700 Merrill Lynch & Co., Inc..................... 142,215 165,375
------------ ------------
BUILDING MATERIALS-1.68%
5,700 Owens Corning................................ 239,764 207,337
------------ ------------
BUSINESS SERVICES AND SUPPLIES-1.94%
5,400 Flightsafety International, Inc.............. 240,107 238,950
------------ ------------
CHEMICALS-SPECIALTY-4.30%
7,200 Mallinckrodt Group, Inc...................... 272,271 291,600
4,500 Sigma-Aldrich Corp........................... 231,665 237,375
------------ ------------
503,936 528,975
------------ ------------
DRUGS-3.03%
6,400 Mylan Laboratories, Inc...................... 128,456 104,800
4,800 Schering-Plough Corp......................... 275,994 268,200
------------ ------------
404,450 373,000
------------ ------------
ELECTRONIC COMPONENTS-1.88%
6,200 Solectron Corp. (a).......................... 255,874 231,725
------------ ------------
ELECTRICAL EQUIPMENT-2.50%
3,700 General Electric Co.......................... 285,714 307,562
------------ ------------
ELECTRONIC-CONTROLS AND EQUIPMENT-2.04%
6,200 Cooper Industries, Inc....................... 230,976 251,100
------------ ------------
ELECTRONIC-SEMICONDUCTOR AND CAPACITOR-4.17%
6,300 Avnet, Inc................................... 271,403 294,525
10,900 Vishay Intertechnology, Inc.................. 245,216 219,362
------------ ------------
516,619 513,887
------------ ------------
FINANCE SERVICES-0.99%
4,900 H & R Block, Inc............................. 186,449 122,500
------------ ------------
FOOD-5.66%
5,500 ConAgra, Inc................................. 233,907 231,687
6,300 Sara Lee Corp................................ 209,128 198,450
8,300 Sysco Corp................................... 257,935 266,638
------------ ------------
700,970 696,775
------------ ------------
|
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
HEALTH CARE SERVICES-2.88%
6,300 Columbia/HCA Healthcare Corp................. $ 329,114 $ 355,163
------------ ------------
HOUSEHOLD PRODUCTS-2.02%
2,800 Procter & Gamble Co.......................... 234,128 248,850
------------ ------------
METALS-MINING AND MISCELLANEOUS-1.93%
6,100 Cleveland-Cliffs, Inc........................ 234,813 237,900
------------ ------------
NATURAL GAS TRANSMISSIONS-2.35%
5,800 Williams Companies, Inc...................... 277,294 289,275
------------ ------------
OFFICE EQUIPMENT AND SUPPLIES-6.64%
2,700 International Business Machines Corp......... 256,547 308,813
6,100 Pitney Bowes, Inc............................ 289,290 294,325
3,900 Xerox Corp................................... 171,610 214,013
------------ ------------
717,447 817,151
------------ ------------
OIL-CRUDE PETROLEUM AND GAS-3.36%
4,300 Anadarko Petroleum Corp...................... 230,965 226,825
9,000 Union Texas Petroleum Holdings, Inc.......... 172,427 186,750
------------ ------------
403,392 413,575
------------ ------------
OIL-REFINING-2.91%
1,200 Atlantic Richfield Co........................ 134,683 140,100
9,600 Lyondell Petrochemical Co.................... 229,244 218,400
------------ ------------
363,927 358,500
------------ ------------
PRECISION INSTRUMENTS-TEST, RESEARCH-2.04%
3,000 Emerson Electric Co.......................... 241,970 251,250
------------ ------------
RAILROAD AND RAILROAD EQUIPMENT-2.08%
3,200 Burlington Northern Santa Fe Corp............ 254,987 256,000
------------ ------------
REAL ESTATE-INVESTMENT TRUST-3.22%
6,000 Developers Diversified Realty Corp........... 178,387 196,500
6,900 Kimco Realty Corp............................ 186,800 200,100
------------ ------------
365,187 396,600
------------ ------------
RETAIL-DEPARTMENT STORES-4.69%
9,200 Federated Department Stores, Inc. (a)........ 279,382 318,550
5,700 May Department Stores Co..................... 225,765 259,350
------------ ------------
505,147 577,900
------------ ------------
RETAIL-SPECIALTY-3.03%
3,300 Home Depot, Inc.............................. 152,291 175,313
5,100 Lowe's Companies, Inc........................ 164,897 184,238
400 Payless ShoeSource, Inc. (a)................. 9,576 14,050
------------ ------------
326,764 373,601
------------ ------------
TEXTILE MANUFACTURING-2.11%
9,500 Unifi, Inc................................... 232,562 260,063
------------ ------------
UTILITIES-TELEPHONE-2.17%
5,100 AT & T Corp.................................. 309,134 267,750
------------ ------------
TOTAL COMMON STOCKS.......................... $10,453,072 $10,658,800
------------ ------------
------------ ------------
|
PREFERRED STOCKS-1.39%
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
------- ------------ ------------
PAPER-1.39%
6,900 James River Corp. of Virginia Conv. Series
P.......................................... $ 168,068 $ 171,637
------------ ------------
TOTAL LONG-TERM INVESTMENTS.................. $10,621,140 $10,830,437
------------ ------------
------------ ------------
|
FORTIS STOCK FUNDS
VALUE FUND (CONTINUED)
Schedule of Investments
August 31, 1996
SHORT-TERM INVESTMENTS-12.37%
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
--------- ------------
BANKS-3.62%
$446,000 First Trust Money Market Variable Rate Time
Deposit, Current rate -- 5.20%............. $ 446,000
------------
DIVERSIFIED FINANCE-3.88%
478,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.31%...................... 478,000
------------
U.S. GOVERNMENT AGENCY-4.87%
200,000 Federal Home Loan Mortgage Corp., 5.29%,
9-3-1996................................... 199,913
400,000 Federal Home Loan Mortgage Corp., 5.33%,
9-4-1996................................... 399,768
------------
599,681
------------
TOTAL SHORT-TERM INVESTMENTS................. 1,523,681
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$12,144,821) (B)........................... $12,354,118
------------
------------
|
(a) Presently not paying dividend income.
(b) At August 31, 1996, the cost of securities for federal income tax purposes
was $12,145,678 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
Unrealized appreciation.......................................................................................... $ 610,329 Unrealized depreciation.......................................................................................... (401,889) - ------------------------------------------------------------------------------------------------------------------------------ Net unrealized appreciation...................................................................................... $ 208,440 - ------------------------------------------------------------------------------------------------------------------------------ |
(c) See Note1 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.
FORTIS STOCK FUNDS
GROWTH & INCOME FUND
Schedule of Investments
August 31, 1996
COMMON STOCKS-79.84%
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
------- ----------- -----------
AEROSPACE AND EQUIPMENT-1.62%
750 United Technologies Corp..................... $ 83,155 $ 84,562
----------- -----------
AUTOMOBILE AND MOTOR VEHICLE PARTS-1.24%
1,300 Tenneco, Inc................................. 69,630 64,675
----------- -----------
BANKS-3.99%
2,500 Banc One Corp................................ 91,189 95,937
2,100 Boatmens Bancshares, Inc..................... 91,108 111,825
----------- -----------
182,297 207,762
----------- -----------
BUSINESS SERVICES AND SUPPLIES-1.04%
1,200 Omnicom Group, Inc........................... 50,206 54,450
----------- -----------
DIVERSIFIED COMPANIES-2.83%
1,200 Chemed Corp.................................. 46,998 44,550
1,500 Minnesota Mining and Manufacturing Co........ 96,095 103,125
----------- -----------
143,093 147,675
----------- -----------
DRUGS-9.61%
1,600 Abbott Laboratories.......................... 69,688 72,200
1,600 American Home Products Corp.................. 83,134 94,800
1,250 Lilly (Eli) & Co., Inc....................... 71,431 71,562
1,000 Merck & Co., Inc............................. 63,634 65,625
1,000 Pfizer, Inc.................................. 70,632 71,000
3,000 Pharmacia and UpJohn, Inc.................... 124,917 126,000
----------- -----------
483,436 501,187
----------- -----------
ELECTRICAL EQUIPMENT-1.59%
1,000 General Electric Co.......................... 77,500 83,125
----------- -----------
FINANCE SERVICES-11.22%
1,100 American Express Co.......................... 51,743 48,125
1,600 Beneficial Corp.............................. 86,868 90,200
2,000 Federal National Mortgage Association........ 64,143 62,000
2,700 Green Tree Financial Corp.................... 92,127 93,825
700 H & R Block, Inc............................. 24,509 17,500
1,500 Household International, Inc................. 103,188 118,875
2,175 MBNA Corp.................................... 63,726 66,066
1,600 Mercury Finance Co........................... 23,014 18,600
950 Student Loan Marketing Association........... 70,909 69,944
----------- -----------
580,227 585,135
----------- -----------
FOOD-4.14%
2,500 ConAgra, Inc................................. 108,157 105,312
3,500 Heinz (H.J.) Co.............................. 111,792 110,250
----------- -----------
219,949 215,562
----------- -----------
HAND TOOLS AND GENERAL HARDWARE-1.75%
2,000 Snap-On, Inc................................. 89,854 91,250
----------- -----------
HOUSEHOLD PRODUCTS-1.62%
900 Clorox Co.................................... 78,879 84,262
----------- -----------
INSURANCE-1.91%
3,000 Safeco Corp.................................. 101,625 99,375
----------- -----------
MACHINERY-OIL AND WELL-2.69%
2,650 Dresser Industries, Inc...................... 75,656 76,850
1,200 Halliburton Co............................... 65,948 63,150
----------- -----------
141,604 140,000
----------- -----------
|
FORTIS STOCK FUNDS
GROWTH & INCOME FUND (CONTINUED)
Schedule of Investments
August 31, 1996
Market
Shares Cost (b) Value (c)
------- ----------- -----------
MEDICAL SUPPLIES-1.63%
1,900 Baxter International, Inc.................... $ 85,047 $ 84,787
----------- -----------
NATURAL GAS TRANSMISSIONS-9.06%
2,400 El Paso Natural Gas Co....................... 82,955 99,900
1,900 Enron Corp................................... 72,883 76,238
2,800 PanEnergy Corp............................... 83,765 92,750
2,350 Sonat, Inc................................... 86,251 103,694
2,000 Williams Companies, Inc...................... 96,781 99,750
----------- -----------
422,635 472,332
----------- -----------
OIL-CRUDE PETROLEUM AND GAS-5.05%
1,200 Amoco Corp................................... 83,797 82,800
1,300 Exxon Corp................................... 107,015 105,788
1,300 Kerr-McGee Corp.............................. 83,567 74,588
----------- -----------
274,379 263,176
----------- -----------
PRINTING-0.27%
900 New England Business Service, Inc............ 18,751 13,950
----------- -----------
PUBLISHING-2.42%
1,500 McGraw Hill Companies, Inc................... 64,143 61,500
1,600 Readers Digest Association, Inc. Class A
Non-Voting................................. 72,482 64,600
----------- -----------
136,625 126,100
----------- -----------
RAILROAD AND RAILROAD EQUIPMENT-1.15%
4,000 Tranz Rail Holdings, Ltd. ADR (a)............ 51,250 60,000
----------- -----------
RETAIL-DEPARTMENT STORES-1.01%
1,200 Sears Roebuck & Co........................... 56,498 52,800
----------- -----------
RETAIL-SPECIALTY-1.62%
2,000 Intimate Brands, Inc......................... 29,560 40,000
1,400 Rite Aid Corp................................ 46,781 44,625
----------- -----------
76,341 84,625
----------- -----------
TOBACCO-2.89%
1,500 American Brands, Inc......................... 67,973 60,938
1,000 Philip Morris Companies, Inc................. 96,317 89,750
----------- -----------
164,290 150,688
----------- -----------
UTILITIES-TELEPHONE-9.49%
1,700 AT & T Corp.................................. 92,833 89,250
3,000 Frontier Corp................................ 92,140 88,500
1,400 GTE Corp..................................... 61,578 55,125
2,200 Sprint Corp.................................. 82,114 89,375
1,100 Telecom Corp. of New Zealand Ltd. ADR........ 78,186 84,150
3,000 US West Communications Group................. 93,210 88,500
----------- -----------
500,061 494,900
----------- -----------
TOTAL COMMON STOCKS.......................... $4,087,332 $4,162,378
----------- -----------
----------- -----------
|
SHORT-TERM INVESTMENTS-22.18%
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
--------- -----------
BANKS-3.78%
$197,000 First Trust Money Market Variable Rate Time
Deposit, Current rate -- 5.20%............. $ 197,000
-----------
DIVERSIFIED FINANCE-1.15%
60,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.31%...................... 60,000
-----------
U.S. GOVERNMENT AGENCY-17.25%
500,000 Federal National Mortgage Assoc., 5.20%,
9-5-1996................................... 499,644
200,000 Federal National Mortgage Assoc., 5.29%,
9-3-1996................................... 199,913
200,000 Federal Home Loan Mortgage Corp., 5.31%,
9-9-1996................................... 199,740
-----------
899,297
-----------
TOTAL SHORT-TERM INVESTMENTS................. 1,156,297
-----------
TOTAL INVESTMENTS IN SECURITIES (COST:
$5,243,629) (B)............................ $5,318,675
-----------
-----------
|
(a) Presently not paying dividend income.
(b) At August 31, 1996, the cost of securities for federal income tax purposes
was $5,243,629 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
Unrealized appreciation........................................................................................... $ 174,664 Unrealized depreciation........................................................................................... (99,618) - ------------------------------------------------------------------------------------------------------------------------------- Net unrealized appreciation....................................................................................... $ 75,046 - ------------------------------------------------------------------------------------------------------------------------------- |
(c) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets. Market value of investments in foreign
securities represents 2.77% of net assets as of August 31, 1996.
FORTIS STOCK FUNDS
CAPITAL FUND
Schedule of Investments
August 31, 1996
COMMON STOCKS-83.73%
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
--------- ------------- -------------
AUTOMOBILE AND MOTOR VEHICLE PARTS-1.05%
63,000 Magna International, Inc. Class A (e)........ $ 2,984,455 $ 3,039,750
------------- -------------
BIOMEDICS, GENETICS RESEARCH AND DEVELOPMENT-1.06%
53,000 Amgen, Inc. (a).............................. 2,949,608 3,087,250
------------- -------------
BROADCASTING-1.04%
142,100 News Corp., Ltd. ADR (e)..................... 2,524,632 3,019,625
------------- -------------
BUSINESS SERVICES AND SUPPLIES-6.60%
125,000 Ceridian Corp. (a)(e)........................ 5,552,914 5,328,125
153,406 First Data Corp. (e)......................... 5,538,062 11,965,668
118,000 Wackenhut Corp. Class B...................... 2,832,064 1,888,000
------------- -------------
13,923,040 19,181,793
------------- -------------
COMPUTER-SOFTWARE-11.16%
123,000 Computer Associates International, Inc.
(e)........................................ 3,293,074 6,457,500
87,400 Microsoft Corp. (a).......................... 1,156,797 10,706,500
317,700 Oracle Corp. (a)(e).......................... 1,554,007 11,198,925
60,000 Sterling Software, Inc. (a).................. 4,608,074 4,072,500
------------- -------------
10,611,952 32,435,425
------------- -------------
DRUGS-0.24%
23,700 Biovail Corp. International (a).............. 693,834 711,000
------------- -------------
ELECTRONIC-SEMICONDUCTOR AND CAPACITOR-2.76%
39,100 Intel Corp................................... 1,086,283 3,120,669
92,000 Motorola, Inc................................ 3,681,452 4,910,500
------------- -------------
4,767,735 8,031,169
------------- -------------
FINANCE SERVICES-8.64%
266,000 Federal National Mortgage Association........ 2,327,500 8,246,000
264,576 Green Tree Financial Corp.................... 3,472,611 9,194,016
252,000 MBNA Corp.................................... 3,617,255 7,654,500
------------- -------------
9,417,366 25,094,516
------------- -------------
HEALTH CARE SERVICES-5.64%
20,000 Cardinal Health, Inc......................... 1,526,400 1,467,500
107,000 Columbia/HCA Healthcare Corp. (e)............ 4,550,799 6,032,125
62,500 Oxford Health Plans, Inc. (a)(e)............. 2,768,578 2,859,375
48,800 PacifiCare Health Systems, Inc., Class B
(a)(e)..................................... 3,430,660 3,928,400
54,500 United Healthcare Corp....................... 2,775,129 2,105,062
------------- -------------
15,051,566 16,392,462
------------- -------------
HOTEL AND GAMING-2.88%
231,000 Mirage Resorts, Inc. (a)..................... 2,603,580 5,370,750
63,000 Sun International Hotels, Ltd. (a)(e)........ 2,926,982 2,984,625
------------- -------------
5,530,562 8,355,375
------------- -------------
INSURANCE-2.42%
74,000 American International Group, Inc............ 7,030,481 7,030,000
------------- -------------
MEDICAL TECHNOLOGY-3.59%
102,500 Boston Scientific Corp. (a)(e)............... 4,200,989 4,702,187
110,000 Medtronic, Inc. (and rights)................. 1,296,332 5,720,000
------------- -------------
5,497,321 10,422,187
------------- -------------
|
Market
Shares Cost (b) Value (c)
--------- ------------- -------------
OIL AND GAS FIELD SERVICES-1.02%
35,000 Schlumberger, Ltd. (e)....................... $ 3,009,163 $ 2,953,125
------------- -------------
OIL-CRUDE PETROLEUM AND GAS-1.22%
95,000 Nuevo Energy Co. (a)......................... 3,295,862 3,550,625
------------- -------------
PUBLISHING-1.16%
49,800 Scholastic Corp. (a)(e)...................... 2,539,082 3,373,950
------------- -------------
RETAIL-DEPARTMENT STORES-3.76%
190,400 Kohl's Corp. (a)............................. 3,718,455 7,235,200
139,600 Wal-Mart Stores, Inc. (e).................... 978,984 3,699,400
------------- -------------
4,697,439 10,934,600
------------- -------------
RETAIL-SPECIALTY-10.80%
128,200 AutoZone, Inc. (a)(e)........................ 2,473,409 3,493,450
221,100 CUC International, Inc. (a)(e)............... 3,676,989 7,600,312
167,166 Home Depot, Inc.............................. 2,307,584 8,880,694
236,025 Office Depot, Inc. (a)(e).................... 1,806,806 3,746,897
141,000 Pep Boys-Manny Moe & Jack (e)................ 2,606,629 4,723,500
148,000 Price/Costco, Inc. (a)....................... 2,840,050 2,941,500
------------- -------------
15,711,467 31,386,353
------------- -------------
TELECOMMUNICATIONS-7.56%
172,000 Cisco Systems, Inc. (a)...................... 2,121,788 9,073,000
284,000 Ericsson (L.M.) Telephone Co., Class B ADR
(e)........................................ 3,485,342 6,549,750
100,000 Tellabs, Inc. (a)............................ 3,223,783 6,337,500
------------- -------------
8,830,913 21,960,250
------------- -------------
TELEPHONE SERVICES-5.65%
125,000 360 Communications Co. (a)................... 3,009,288 2,984,375
152,000 AirTouch Communications, Inc. (a)............ 3,987,730 4,180,000
440,900 WorldCom, Inc. (a)(e)........................ 2,346,825 9,258,900
------------- -------------
9,343,843 16,423,275
------------- -------------
TOYS-4.57%
503,343 Mattel, Inc.................................. 3,142,033 13,275,672
------------- -------------
UTILITIES-ELECTRIC-0.91%
163,400 Tucson Electric Power Co. (a)(e)............. 2,729,792 2,634,825
------------- -------------
TOTAL COMMON STOCKS.......................... $ 134,282,146 $ 243,293,227
------------- -------------
------------- -------------
|
PREFERRED STOCKS-0.40%
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
-------- ------------- -------------
BROADCASTING-0.40%
64,800 News Corp. Ltd.(The) Preferred ADR (e)....... $ 989,913 $ 1,150,200
------------- -------------
TOTAL LONG-TERM INVESTMENTS.................. $ 135,272,059 $ 244,443,427
------------- -------------
------------- -------------
|
FORTIS STOCK FUNDS
CAPITAL FUND (CONTINUED)
Schedule of Investments
August 31, 1996
SHORT-TERM INVESTMENTS-17.10%
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
------------ -------------
BANKS-2.03%
$ 5,889,802 First Trust Money Market Variable Rate Time
Deposit, Current rate -- 5.20%............. $ 5,889,802
-------------
DIVERSIFIED FINANCE-3.32%
9,649,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.31%...................... 9,649,000
-------------
U.S. GOVERNMENT AGENCY-11.75%
10,500,000 Federal Home Loan Mortgage Corp., 5.29%,
9-4-1996................................... 10,493,922
11,000,000 Federal Home Loan Mortgage Corp., 5.29%,
9-18-1996.................................. 10,971,400
12,700,000 Federal Home Loan Mortgage Corp., 5.32%,
9-6-1996................................... 12,688,930
-------------
34,154,252
-------------
TOTAL SHORT-TERM INVESTMENTS................. 49,693,054
-------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$184,965,113) (B).......................... $ 294,136,481
-------------
-------------
|
(a) Presently not paying dividend income.
(b) At August 31, 1996, the cost of securities for federal income tax purposes
was $184,965,113 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
Unrealized appreciation..................................... $ 112,519,156 Unrealized depreciation..................................... (3,347,788) - --------------------------------------------------------------------------- Net unrealized appreciation................................. $ 109,171,368 - --------------------------------------------------------------------------- |
(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 7.02% of net assets as of August 31, 1996.
(e) Security is fully or partially on loan at August 31, 1996. See Note 1 of
accompanying Notes to Financial Statements.
FORTIS STOCK FUNDS
FIDUCIARY FUND, INC.
Schedule of Investments
August 31, 1996
COMMON STOCKS-87.71%
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
--------- ------------ ------------
AUTOMOBILE AND MOTOR VEHICLE PARTS-1.09%
16,000 Magna International, Inc. Class A............ $ 757,466 $ 772,000
------------ ------------
BIOMEDICS, GENETICS RESEARCH AND DEVELOPMENT-1.07%
13,000 Amgen, Inc. (a).............................. 723,457 757,250
------------ ------------
BROADCASTING-0.90%
30,000 News Corp., Ltd. ADR (d)..................... 568,584 637,500
------------ ------------
BUSINESS SERVICES AND SUPPLIES-5.99%
31,000 Ceridian Corp. (a)(d)........................ 1,382,023 1,321,375
31,411 First Data Corp. (d)......................... 1,142,960 2,450,058
29,000 Wackenhut Corp. Class B...................... 696,052 464,000
------------ ------------
3,221,035 4,235,433
------------ ------------
COMPUTER-COMMUNICATIONS EQUIPMENT-1.47%
15,200 Cascade Communications Corp. (a)(d).......... 721,598 1,035,500
------------ ------------
COMPUTER-SOFTWARE-15.95%
27,800 BMC Software, Inc. (a)(d).................... 770,472 2,071,100
31,075 Computer Associates International, Inc....... 814,430 1,631,437
20,400 Microsoft Corp. (a).......................... 287,042 2,499,000
75,300 Oracle Corp. (a)............................. 287,175 2,654,325
35,600 Sterling Software, Inc. (a).................. 650,231 2,416,350
------------ ------------
2,809,350 11,272,212
------------ ------------
DRUGS-0.25%
5,800 Biovail Corp. Intl. (a)...................... 169,799 174,000
------------ ------------
ELECTRONIC-SEMICONDUCTOR AND CAPACITOR-2.87%
10,000 Intel Corp................................... 99,793 798,125
23,000 Motorola, Inc................................ 923,254 1,227,625
------------ ------------
1,023,047 2,025,750
------------ ------------
FINANCE SERVICES-7.49%
59,200 Federal National Mortgage Association........ 518,000 1,835,200
50,944 Green Tree Financial Corp.................... 669,081 1,770,304
55,500 MBNA Corp.................................... 805,564 1,685,813
------------ ------------
1,992,645 5,291,317
------------ ------------
HEALTH CARE SERVICES-5.56%
5,000 Cardinal Health, Inc......................... 381,600 366,875
25,200 Columbia/HCA Healthcare Corp. (d)............ 1,063,738 1,420,650
15,500 Oxford Health Plans, Inc. (a)(d)............. 707,813 709,125
12,200 PacifiCare Health Systems, Inc., Class B
(a)(d)..................................... 941,410 982,100
11,600 United Healthcare Corp....................... 605,989 448,050
------------ ------------
3,700,550 3,926,800
------------ ------------
HOTEL AND GAMING-3.92%
12,000 HFS, Inc. (a)(d)............................. 681,937 718,500
48,500 Mirage Resorts, Inc. (a)..................... 546,510 1,127,625
7,000 Promus Hotel Corp. (a)....................... 204,105 210,875
15,000 Sun International Hotels Ltd. (a)(d)......... 696,000 710,625
------------ ------------
2,128,552 2,767,625
------------ ------------
INSURANCE-2.42%
18,000 American International Group, Inc............ 1,710,175 1,710,000
------------ ------------
MEDICAL SUPPLIES-0.96%
22,000 Steris Corp. (a)............................. 746,081 676,500
------------ ------------
MEDICAL TECHNOLOGY-3.60%
24,800 Boston Scientific Corp. (a)(d)............... 1,017,287 1,137,700
27,000 Medtronic, Inc. (and rights)................. 323,219 1,404,000
------------ ------------
1,340,506 2,541,700
------------ ------------
|
FORTIS STOCK FUNDS
FIDUCIARY FUND, INC. (CONTINUED)
Schedule of Investments
August 31, 1996
Market
Shares Cost (b) Value (c)
--------- ------------ ------------
OIL AND GAS FIELD SERVICES-0.96%
8,000 Schlumberger, Ltd. (d)....................... $ 687,821 $ 675,000
------------ ------------
OIL-CRUDE PETROLEUM AND GAS-1.22%
23,000 Nuevo Energy Co. (a)......................... 797,592 859,625
------------ ------------
PUBLISHING-0.92%
9,600 Scholastic Corp. (a)......................... 489,198 650,400
------------ ------------
RETAIL-DEPARTMENT STORES-3.01%
37,000 Kohl's Corp. (a)............................. 722,598 1,406,000
27,200 Wal-Mart Stores, Inc......................... 206,975 720,800
------------ ------------
929,573 2,126,800
------------ ------------
RETAIL-SPECIALTY-9.70%
25,000 AutoZone, Inc. (a)(d)........................ 482,350 681,250
48,050 CUC International, Inc. (a)(d)............... 869,623 1,651,719
40,833 Home Depot, Inc.............................. 983,607 2,169,253
46,350 Office Depot, Inc. (a)(d).................... 351,521 735,806
31,900 Pep Boys-Manny Moe & Jack.................... 589,736 1,068,650
28,000 Price/Costco, Inc. (a)....................... 560,434 556,500
------------ ------------
3,837,271 6,863,178
------------ ------------
TELECOMMUNICATIONS-7.54%
43,000 Cisco Systems, Inc. (a)...................... 533,290 2,268,250
64,000 Ericsson (L.M.) Telephone Co., Class B ADR
(d)........................................ 765,326 1,476,000
25,000 Tellabs, Inc. (a)............................ 797,357 1,584,375
------------ ------------
2,095,973 5,328,625
------------ ------------
TELEPHONE SERVICES-5.65%
30,000 360 Communications Co. (a)................... 722,229 716,250
37,000 AirTouch Communications, Inc. (a)............ 979,588 1,017,500
4,500 LCI International, Inc. (a)(d)............... 131,920 159,188
100,108 WorldCom, Inc. (a)(d)........................ 526,188 2,102,268
------------ ------------
2,359,925 3,995,206
------------ ------------
TOYS-4.27%
114,257 Mattel, Inc.................................. 734,774 3,013,528
------------ ------------
UTILITIES-ELECTRIC-0.90%
39,500 Tucson Electric Power Co. (a)(d)............. 659,865 636,938
------------ ------------
TOTAL COMMON STOCKS.......................... $34,204,837 $61,972,887
------------ ------------
------------ ------------
|
PREFERRED STOCKS-0.38%
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
-------- ------------ ------------
BROADCASTING-0.38%
15,000 News Corp. Ltd.(the) Preferred ADR (d)....... $ 246,007 $ 266,250
------------ ------------
TOTAL LONG-TERM INVESTMENTS.................. $34,450,844 $62,239,137
------------ ------------
------------ ------------
|
SHORT-TERM INVESTMENTS-13.27%
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
----------- ------------
BANKS-3.36%
$2,371,941 First Trust Money Market Variable Rate Time
Deposit, Current rate -- 5.20%............. $ 2,371,941
------------
DIVERSIFIED FINANCE-0.02%
16,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.31%...................... 16,000
------------
U.S. GOVERNMENT AGENCY-9.89%
3,000,000 Federal Home Loan Mortgage Corp., 5.29%,
9-18-1996.................................. 2,992,200
4,000,000 Federal Home Loan Mortgage Corp., 5.31%,
9-9-1996................................... 3,994,790
------------
6,986,990
------------
TOTAL SHORT-TERM INVESTMENTS................. 9,374,931
------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$43,825,775) (B)........................... $71,614,068
------------
------------
|
(a) Presently not paying dividend income.
(b) At August 31, 1996, the cost of securities for federal income tax purposes
was $43,825,775 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
Unrealized appreciation........................... $ 28,600,927 Unrealized depreciation........................... (812,634) ---------------------------------------------------------------- Net unrealized appreciation....................... $ 27,788,293 ---------------------------------------------------------------- |
(c) See Note 1 of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Security is fully or partially on loan at August 31, 1996. See Note 1 of
accompanying Notes to Financial Statements.
(e) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets. Market value of investments in foreign
securities represents 6.67% of net assets as of August 31, 1996.
FORTIS STOCK FUNDS
GROWTH FUND, INC.
Schedule of Investments
August 31, 1996
COMMON STOCKS-87.85%
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
----------- ------------- -------------
APPAREL-1.25%
190,000 Tommy Hilfiger Corp. (a)..................... $ 6,413,521 $ 9,523,750
------------- -------------
BIOMEDICS, GENETICS RESEARCH AND DEVELOPMENT-2.44%
137,500 Biogen, Inc. (a)............................. 7,347,563 9,590,625
378,600 Genzyme Corp.-General Division (a)........... 12,198,419 9,039,075
------------- -------------
19,545,982 18,629,700
------------- -------------
BROADCASTING-0.49%
123,000 America Online, Inc. (a)..................... 3,983,750 3,720,750
------------- -------------
BUSINESS SERVICES AND SUPPLIES-2.41%
311,700 AccuStaff, Inc. (a).......................... 8,351,679 7,247,025
142,730 First Data Corp.............................. 5,788,380 11,132,940
------------- -------------
14,140,059 18,379,965
------------- -------------
COMPUTER-COMMUNICATIONS EQUIPMENT-10.79%
472,300 3Com Corp. (a)............................... 2,157,359 22,080,025
148,500 Ascend Communications, Inc. (a).............. 5,659,780 7,777,687
163,800 Cascade Communications Corp. (a)............. 7,828,419 11,158,875
634,100 Cisco Systems, Inc. (a)...................... 1,124,537 33,448,775
134,000 FORE Systems, Inc. (a)....................... 3,652,061 4,757,000
59,600 U.S. Robotics Corp. (a)...................... 3,843,921 3,129,000
------------- -------------
24,266,077 82,351,362
------------- -------------
COMPUTER-SOFTWARE-16.87%
304,200 BMC Software, Inc. (a)....................... 6,055,197 22,662,900
691,300 Informix Corp. (a)........................... 7,540,167 15,554,250
231,700 Microsoft Corp. (a).......................... 7,717,151 28,383,250
815,850 Oracle Corp. (a)............................. 3,263,023 28,758,712
493,000 Parametric Technology Corp. (a).............. 7,197,363 22,323,656
162,900 Sterling Software, Inc. (a).................. 9,302,901 11,056,838
------------- -------------
41,075,802 128,739,606
------------- -------------
ELECTRONIC COMPONENTS-1.69%
345,800 Solectron Corp. (a).......................... 9,440,797 12,924,275
------------- -------------
ELECTRONIC-SEMICONDUCTOR AND CAPACITOR-1.08%
102,900 Intel Corp................................... 2,643,273 8,212,706
------------- -------------
FINANCE SERVICES-7.83%
170,000 Advanta Corp., Class B....................... 8,436,250 7,565,000
330,200 Capital One Financial Corp................... 10,009,655 9,947,275
145,000 First USA, Inc............................... 8,397,580 7,685,000
238,000 Franklin Resources, Inc...................... 3,567,571 14,161,000
401,000 Green Tree Financial Corp.................... 13,255,860 13,934,750
554,250 Mercury Finance Co........................... 6,064,747 6,443,156
------------- -------------
49,731,663 59,736,181
------------- -------------
HEALTH CARE SERVICES-6.59%
168,000 HBO & Co..................................... 3,095,252 9,177,000
365,000 MedPartners/Mullikin, Inc. (a)............... 10,313,664 7,573,750
298,000 Oxford Health Plans, Inc. (a)................ 6,578,590 13,633,500
110,000 PacifiCare Health Systems, Inc., Class B
(a)........................................ 6,356,484 8,855,000
145,500 PhyCor, Inc. (a)............................. 4,637,673 4,765,125
162,500 United Healthcare Corp....................... 5,954,993 6,276,563
------------- -------------
36,936,656 50,280,938
------------- -------------
HOTEL AND GAMING-1.36%
131,000 HFS, Inc. (a)................................ 7,448,757 7,843,625
82,500 Promus Hotel Corp. (a)....................... 1,449,428 2,485,313
------------- -------------
8,898,185 10,328,938
------------- -------------
|
Market
Shares Cost (b) Value (c)
----------- ------------- -------------
MACHINERY-OIL AND WELL-2.56%
232,000 Input/Output, Inc. (a)....................... $ 5,411,569 $ 8,207,000
415,000 Petroleum Geo-Services ADR (a)............... 10,513,200 11,308,750
------------- -------------
15,924,769 19,515,750
------------- -------------
MEDICAL SUPPLIES-0.90%
223,000 Steris Corp. (a)............................. 7,598,388 6,857,250
------------- -------------
PUBLISHING-1.18%
133,400 Scholastic Corp. (a)......................... 6,796,947 9,037,850
------------- -------------
RESTAURANTS AND FRANCHISING-5.47%
507,600 Lone Star Steakhouse & Saloon, Inc. (a)...... 7,862,250 16,814,250
314,700 Outback Steakhouse, Inc. (a)................. 4,826,413 8,890,275
490,000 Starbucks Corp. (a).......................... 8,289,867 16,047,500
------------- -------------
20,978,530 41,752,025
------------- -------------
RETAIL-DEPARTMENT STORES-2.15%
264,600 Kohl's Corp. (a)............................. 4,252,122 10,054,800
239,800 Wal-Mart Stores, Inc......................... 1,777,676 6,354,700
------------- -------------
6,029,798 16,409,500
------------- -------------
RETAIL-SPECIALTY-8.22%
123,500 Barnes & Noble, Inc. (a)..................... 3,197,295 4,060,063
510,450 CUC International, Inc. (a).................. 8,857,064 17,546,719
308,715 Home Depot, Inc.............................. 2,018,922 16,400,484
467,375 Office Depot, Inc. (a)....................... 4,470,750 7,419,578
624,375 Staples, Inc. (a)............................ 7,615,944 12,331,406
316,500 Sunglass Hut International, Inc. (a)......... 8,496,944 4,984,875
------------- -------------
34,656,919 62,743,125
------------- -------------
TELECOMMUNICATION EQUIPMENT-8.65%
233,000 ADC Telecommunications, Inc. (a)............. 7,581,716 13,222,750
199,500 Andrew Corp. (a)............................. 6,423,092 8,877,750
260,000 QUALCOMM, Inc. (a)........................... 10,094,263 11,277,500
514,100 Tellabs, Inc. (a)............................ 5,907,140 32,581,088
------------- -------------
30,006,211 65,959,088
------------- -------------
TELEPHONE SERVICES-5.92%
49,000 LCI International, Inc. (a).................. 1,434,893 1,733,375
349,000 MFS Communications Co., Inc. (a)............. 9,021,542 14,788,875
424,000 Paging Network, Inc. (a)..................... 6,413,000 7,473,000
1,010,000 WorldCom, Inc. (a)........................... 11,611,844 21,210,000
------------- -------------
28,481,279 45,205,250
------------- -------------
TOTAL COMMON STOCKS.......................... $ 367,548,606 $ 670,308,009
------------- -------------
------------- -------------
|
FORTIS STOCK FUNDS
GROWTH FUND, INC. (CONTINUED)
Schedule of Investments
August 31, 1996
Principal Market
Amount Value (c)
----------- -------------
BANKS-4.84%
$36,912,000 First Trust Money Market Variable Rate Time
Deposit, Current rate -- 5.20%............. $ 36,912,000
-------------
DIVERSIFIED FINANCE-0.13%
996,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.29%...................... 996,000
-------------
U.S. GOVERNMENT AGENCY-6.37%
24,500,000 Federal Home Loan Mortgage Corp., 5.29%,
9-18-1996.................................. 24,436,300
4,600,000 Federal Farm Credit Bank, 5.30%, 9-3-1996.... 4,597,999
3,700,000 Federal Home Loan Mortgage Corp., 5.31%,
9-9-1996................................... 3,695,181
15,900,000 Federal Home Loan Mortgage Corp., 5.32%,
9-6-1996................................... 15,886,140
-------------
48,615,620
-------------
TOTAL SHORT-TERM INVESTMENTS................. 86,523,620
-------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$454,072,226) (B).......................... $ 756,831,629
-------------
-------------
|
(a) Presently not paying dividend income.
(b) At August 31, 1996, the cost of securities for federal income tax purposes
was $454,072,226 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
Unrealized appreciation..................................... $ 319,414,698 Unrealized depreciation..................................... (16,655,295) - --------------------------------------------------------------------------- Net unrealized appreciation................................. $ 302,759,403 - --------------------------------------------------------------------------- |
(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 1.48% of net assets as of August 31, 1996.
FORTIS STOCK FUNDS
CAPITAL APPRECIATION PORTFOLIO
Schedule of Investments
August 31, 1996
COMMON STOCKS-87.07%
- --------------------------------------------------------------------------------
Market
Shares Cost (b) Value (c)
--------- ------------ -------------
ADVERTISING-PUBLIC RELATIONS-0.11%
5,000 CKS Group, Inc. (a).......................... $ 85,000 $ 135,000
------------ -------------
APPAREL-0.78%
4,900 Mossimo, Inc. (a)............................ 88,200 222,337
33,000 Quicksilver, Inc. (a)........................ 1,251,718 775,500
------------ -------------
1,339,918 997,837
------------ -------------
BEVERAGE-0.96%
59,700 Boston Beer Co. (The), Inc. (a)(e)........... 1,307,678 1,246,237
------------ -------------
BIOMEDICS, GENETICS RESEARCH AND DEVELOPMENT-0.94%
35,000 Biochem Pharma, Inc. (a)..................... 1,500,025 1,216,250
------------ -------------
BROADCASTING-1.17%
50,000 America Online, Inc. (a)(e).................. 214,062 1,512,500
------------ -------------
BUSINESS SERVICES AND SUPPLIES-12.82%
23,900 Accustaff, Inc. (a)(e)....................... 658,966 555,675
120,000 Acxiom Corp. (a)............................. 738,750 4,560,000
108,000 APAC TeleServices, Inc. (a)(e)............... 985,242 4,779,000
6,000 Career Horizons, Inc. (a).................... 142,500 209,250
12,000 Corrections Corp of America (a)(e)........... 337,004 387,000
60,000 Fastenal Co. (e)............................. 356,875 2,805,000
39,800 Indus Group, Inc. (a)........................ 786,523 776,100
2,500 Precision Response Corp. (a)................. 67,500 75,000
38,500 Romac International, Inc. (a)................ 993,050 1,193,500
47,500 TeleTech Holdings, Inc. (a).................. 707,500 1,252,813
------------ -------------
5,773,910 16,593,338
------------ -------------
COMPUTER-COMMUNICATIONS EQUIPMENT-4.41%
16,200 Ascend Communications, Inc. (a)(e)........... 891,556 848,475
37,800 Cascade Communications Corp. (a)(e).......... 1,489,211 2,575,125
50,000 Network General Corp. (a).................... 730,268 850,000
18,000 Shiva Corp. (a)(e)........................... 828,313 909,000
12,500 Xylan Corp. (a)(e)........................... 743,750 528,125
------------ -------------
4,683,098 5,710,725
------------ -------------
COMPUTER-SOFTWARE-12.34%
15,000 Aspen Technology, Inc. (a)................... 766,517 1,038,750
5,400 Cybercash, Inc. (a)(e)....................... 91,800 156,600
34,000 HNC Software, Inc. (a)....................... 1,125,440 1,045,500
104,000 Informix Corp. (a)........................... 604,875 2,340,000
72,000 Legato Systems, Inc. (a)..................... 898,500 2,844,000
25,000 Lernout and Hauspie Speech Products N.V.
(a)(e)..................................... 952,081 575,000
4,000 Netscape Communications Corp. (a)(e)......... 269,500 141,500
62,000 Parametric Technology Corp. (a).............. 304,238 2,807,438
26,000 Scopus Technology, Inc. (a).................. 515,091 474,500
15,000 Sterling Commerce, Inc. (a).................. 360,000 465,000
32,200 Sterling Software, Inc. (a)(e)............... 604,985 2,185,575
49,800 Synopsys, Inc. (a)........................... 857,600 1,892,400
------------ -------------
7,350,627 15,966,263
------------ -------------
CONSUMER GOODS-0.66%
46,000 Seattle Film Works, Inc. (a)................. 736,000 856,750
------------ -------------
EDUCATIONAL SERVICES-2.34%
60,000 Apollo Group, Inc. Class A (a)............... 1,163,187 1,530,000
83,000 National Education Corp. (a)................. 1,391,699 1,504,375
------------ -------------
2,554,886 3,034,375
------------ -------------
HEALTH CARE SERVICES-7.76%
30,900 ABR Information Services, Inc. (a)........... 1,397,059 1,745,850
61,000 American Oncology Resources, Inc. (a)........ 927,932 617,625
34,800 Healthsource, Inc. (a)(e).................... 698,436 522,000
|
FORTIS STOCK FUNDS
CAPITAL APPRECIATION PORTFOLIO (CONTINUED)
Schedule of Investments
August 31, 1996
Market
Shares Cost (b) Value (c)
--------- ------------ -------------
32,500 Mecon, Inc. (a).............................. $ 565,375 $ 773,906
30,000 Medic Computer Systems, Inc. (a)............. 721,680 1,046,250
53,000 MedPartners/Mullikin, Inc. (a)(e)............ 1,109,284 1,099,750
60,000 Omnicare, Inc. (e)........................... 592,500 1,470,000
15,000 Parexel International Corp. (a).............. 506,250 727,500
40,000 Pharmaceutical Products Development, Inc.
(a)(e)..................................... 993,206 1,120,000
17,000 Summit Medical Systems, Inc. (a)............. 153,000 289,000
27,700 Transition Systems, Inc. (a)................. 598,130 626,713
------------ -------------
8,262,852 10,038,594
------------ -------------
MACHINERY-OIL AND WELL-5.86%
165,000 Input/Output, Inc. (a)....................... 486,250 5,836,875
64,000 Petroleum Geo-Services ADR (a)............... 1,127,444 1,744,000
------------ -------------
1,613,694 7,580,875
------------ -------------
MEDICAL SUPPLIES-1.84%
14,000 Idexx Laboratories, Inc. (a)................. 491,375 542,500
60,000 Steris Corp. (a)............................. 1,067,130 1,845,000
------------ -------------
1,558,505 2,387,500
------------ -------------
RESTAURANTS AND FRANCHISING-6.51%
67,300 Applebees International, Inc. (e)............ 1,201,960 1,951,700
81,200 Lone Star Steakhouse & Saloon, Inc. (a)(e)... 356,925 2,689,750
37,500 Papa John's International, Inc. (a)(e)....... 720,625 1,696,875
40,000 Quality Dining, Inc. (a)..................... 1,000,000 1,175,000
32,500 Rainforest Cafe, Inc. (a)(e)................. 925,314 910,000
------------ -------------
4,204,824 8,423,325
------------ -------------
RETAIL-MISCELLANEOUS-2.11%
72,900 Corporate Express, Inc. (a)(e)............... 777,600 2,733,750
------------ -------------
RETAIL-SPECIALTY-9.60%
80,000 Bed, Bath & Beyond, Inc. (a)................. 455,000 1,810,000
31,450 CUC International, Inc. (a)(e)............... 1,100,750 1,081,094
83,400 Gadzooks, Inc. (a)........................... 1,117,030 3,169,200
42,000 Gymboree Corp. (a)........................... 993,000 1,212,750
26,000 Just for Feet, Inc. (a)(e)................... 1,356,875 1,163,500
66,000 Sunglass Hut International, Inc. (a)(e)...... 941,203 1,039,500
76,000 West Marine, Inc. (a)(e)..................... 732,813 2,945,000
------------ -------------
6,696,671 12,421,044
------------ -------------
TELECOMMUNICATIONS-3.16%
77,600 Cisco Systems, Inc. (a)...................... 327,552 4,093,400
------------ -------------
TELECOMMUNICATION EQUIPMENT-2.22%
30,500 ADC Telecommunications, Inc. (a)............. 980,237 1,730,875
5,600 Pairgain Technologies, Inc. (a).............. 278,250 371,000
23,000 Westell Technologies, Inc. Class A (a)....... 817,630 773,375
------------ -------------
2,076,117 2,875,250
------------ -------------
TELEPHONE SERVICES-9.12%
37,750 Brooks Fiber Properties, Inc. (a)(e)......... 1,096,750 1,132,500
45,000 ICG Communications, Inc. (a)................. 644,000 990,000
65,000 Intermedia Communications, Inc. (a).......... 1,096,875 2,015,000
110,000 LCI International, Inc. (a)(e)............... 894,300 3,891,250
53,000 McLeod, Inc. Class A (a)..................... 1,262,301 1,530,375
53,000 MFS Communications Co., Inc. (a)(e).......... 1,039,978 2,245,875
------------ -------------
6,034,204 11,805,000
------------ -------------
WASTE DISPOSAL-2.36%
103,400 United Waste Systems, Inc. (a)(e)............ 1,158,950 3,050,300
------------ -------------
TOTAL COMMON STOCKS.......................... $58,256,173 $ 112,678,313
------------ -------------
------------ -------------
|
SHORT-TERM INVESTMENTS-13.37%
- --------------------------------------------------------------------------------
Principal Market
Amount Value (c)
----------- -------------
BANKS-5.00%
$6,474,064 First Trust Money Market Variable Rate Time
Deposit, Current rate -- 5.20%............. $ 6,474,064
-------------
DIVERSIFIED FINANCE-1.57%
2,032,000 Associates Corp. Master Variable Rate Note,
Current rate -- 5.31%...................... 2,032,000
-------------
U.S. GOVERNMENT AGENCY-6.80%
8,800,000 Federal National Mortgage Assoc., 5.20%,
9-5-1996................................... 8,793,742
-------------
TOTAL SHORT-TERM INVESTMENTS................. 17,299,806
-------------
TOTAL INVESTMENTS IN SECURITIES (COST:
$75,555,979) (B)........................... $ 129,978,119
-------------
-------------
|
(a) Presently not paying dividend income.
(b) At August 31, 1996, the cost of securities for federal income tax purposes
was $75,555,979 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
Unrealized appreciation........................... $57,010,483 Unrealized depreciation........................... (2,588,343) --------------------------------------------------------------- Net unrealized appreciation....................... $54,422,140 --------------------------------------------------------------- |
(c) See Note 1 of accompanying Notes to Financial Statements 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 1.79% of net assets as of August 31, 1996.
(e) Security is fully or partially on loan at August 31, 1996. See Note 1 of
accompanying Notes to Financial Statements.
FORTIS STOCK FUNDS
Statements of Assets and Liabilities
August 31, 1996
ASSET
ALLOCATION VALUE
PORTFOLIO FUND
------------- ------------
ASSETS:
Investments in securities, as detailed
in the accompanying schedules, at
market (cost $129,052,844;
$12,144,821; $5,243,629;
$184,965,113; $43,825,775;
$454,072,226; and $75,555,979
respectively) (Note 1).............. $154,272,312 $12,354,118
Cash on deposit with custodian........ 6,139 --
Collateral for securities lending
transactions (Note 1)............... 31,879,970 --
Receivables:
Investment securities sold.......... 490,350 --
Interest and dividends.............. 984,341 19,363
Subscriptions of capital stock...... 36,903 48,547
Deferred registration costs (Note
1).................................. 25,706 7,517
Prepaid expenses...................... -- --
------------- ------------
TOTAL ASSETS............................ 187,695,721 12,429,545
------------- ------------
LIABILITIES:
Bank overdraft........................ -- 24,269
Payable upon return of securities
loaned (Note 1)..................... 31,879,870 --
Payable for investment securities
purchased........................... 993,406 72,128
Redemptions of capital stock.......... 65,611 --
Payable for investment advisory and
management fees..................... 123,613 9,970
Payable for distribution fees......... 6,553 403
Accounts payable and accrued
expenses............................ 14,512 5,460
------------- ------------
TOTAL LIABILITIES....................... 33,083,665 112,230
------------- ------------
NET ASSETS:
Net proceeds of capital stock, par
value $.01 per share authorized
10,000,000,000; 10,000,000,000;
10,000,000,000; 10,000,000,000;
100,000,000,000; 100,000,000,000 and
10,000,000,000 shares;
respectively........................ 121,670,800 11,775,203
Unrealized appreciation of
investments......................... 25,219,468 209,297
Undistributed net investment income... 817,083 37,806
Accumulated net realized gain (loss)
from the sale of investments........ 6,904,705 295,009
------------- ------------
TOTAL NET ASSETS........................ $154,612,056 $12,317,315
------------- ------------
SHARES OUTSTANDING AND NET ASSET VALUE
PER SHARE:
Class A shares (based on net assets of
$136,656,488; $9,847,353; $3,116,747;
$277,586,699; $65,641,339;
$641,060,536; and $114,310,400;
respectively and 8,290,599; 916,377;
301,070; 12,682,210; 1,786,279;
19,944,910; 3,288,627 shares
outstanding; respectively)............ $16.48 $10.75
------------- ------------
Class B shares (based on net assets of
$4,410,608; $641,620; $507,842;
$4,097,112; $1,359,856; $6,709,560;
and $4,521,512 respectively and
268,897; 59,992; 49,194; 188,875;
37,504; 211,345; and 131,202 shares
outstanding; respectively)............ $16.40 $10.70
------------- ------------
Class C shares (based on net assets of
$2,640,741; $222,999; $302,184;
$823,819; $491,045; $1,076,699; and
$1,003,891; respectively and 161,487;
20,850; 29,267; 38,001; 13,520;
33,914; and 29,117 shares outstanding;
respectively)......................... $16.35 $10.70
------------- ------------
Class H shares (based on net assets of
$10,904,219; $1,605,343; $1,286,431;
$8,051,943; $3,164,418; $21,176,112;
$9,575,288; respectively and 665,230;
150,052; 124,577; 371,260; 87,260;
667,044; and 277,680 shares
outstanding; respectively)............ $16.39 $10.70
------------- ------------
Class Z shares (based on net assets of
$0; $0; $0; $0; $0; $93,006,300; $0;
respectively and 0; 0; 0; 0; 0;
2,890,014; and 0 shares outstanding;
respectively)......................... -- --
------------- ------------
|
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
GROWTH & CAPITAL
INCOME CAPITAL FIDUCIARY GROWTH APPRECIATION
FUND FUND FUND FUND PORTFOLIO
----------- ------------- ------------ ------------- -------------
ASSETS:
Investments in securities, as detailed
in the accompanying schedules, at
market (cost $129,052,844;
$12,144,821; $5,243,629; $184,965,113;
$43,825,775; $454,072,226; and
$75,555,979 respectively) (Note 1).... $5,318,675 $294,136,481 $71,614,068 $756,831,629 $129,978,119
Cash on deposit with custodian.......... 120,362 543 432 744 568
Collateral for securities lending
transactions (Note 1)................. -- 66,110,128 19,806,823 -- 43,026,604
Receivables:
Investment securities sold............ -- -- -- 6,597,083 102,125
Interest and dividends................ 14,041 109,039 12,988 237,376 26,412
Subscriptions of capital stock........ 1,377 18,307 3,256 44,657 47,608
Deferred registration costs (Note 1).... 7,507 62,607 18,162 40,887 22,067
Prepaid expenses........................ 65 2,193 -- 310 --
----------- ------------- ------------ ------------- -------------
TOTAL ASSETS............................ 5,462,027 360,439,298 91,455,729 763,752,686 173,203,503
----------- ------------- ------------ ------------- -------------
LIABILITIES:
Bank overdraft........................ -- -- -- -- --
Payable upon return of securities
loaned (Note 1)..................... -- 66,110,128 19,806,823 -- 43,026,604
Payable for investment securities
purchased........................... 240,734 3,502,209 841,980 -- 599,250
Redemptions of capital stock.......... -- 17,525 75,020 159,118 47,764
Payable for investment advisory and
management fees..................... 4,135 214,973 61,215 497,735 101,961
Payable for distribution fees......... 235 6,818 1,775 15,668 5,464
Accounts payable and accrued
expenses............................ 3,719 28,072 12,258 50,958 11,369
----------- ------------- ------------ ------------- -------------
TOTAL LIABILITIES....................... 248,823 69,879,725 20,799,071 723,479 43,792,412
----------- ------------- ------------ ------------- -------------
NET ASSETS:
Net proceeds of capital stock, par
value $.01 per share authorized
10,000,000,000; 10,000,000,000;
10,000,000,000; 10,000,000,000;
100,000,000,000; 100,000,000,000 and
10,000,000,000 shares;
respectively........................ 5,135,626 156,856,043 40,738,446 404,544,987 72,250,079
Unrealized appreciation of
investments......................... 75,046 109,171,368 27,788,293 302,759,403 54,422,140
Undistributed net investment income... 2,872 141,299 -- -- --
Accumulated net realized gain (loss)
from the sale of investments........ (340) 24,390,863 2,129,919 55,724,817 2,738,872
----------- ------------- ------------ ------------- -------------
TOTAL NET ASSETS........................ $5,213,204 $290,559,573 $70,656,658 $763,029,207 $129,411,091
----------- ------------- ------------ ------------- -------------
SHARES OUTSTANDING AND NET ASSET VALUE
PER SHARE:
Class A shares (based on net assets of
$136,656,488; $9,847,353; $3,116,747;
$277,586,699; $65,641,339;
$641,060,536; and $114,310,400;
respectively and 8,290,599; 916,377;
301,070; 12,682,210; 1,786,279;
19,944,910; 3,288,627 shares
outstanding; respectively)............ $10.35 $21.89 $36.75 $32.14 $34.76
----------- ------------- ------------ ------------- -------------
Class B shares (based on net assets of
$4,410,608; $641,620; $507,842;
$4,097,112; $1,359,856; $6,709,560;
and $4,521,512 respectively and
268,897; 59,992; 49,194; 188,875;
37,504; 211,345; and 131,202 shares
outstanding; respectively)............ $10.32 $21.69 $36.26 $31.75 $34.46
----------- ------------- ------------ ------------- -------------
Class C shares (based on net assets of
$2,640,741; $222,999; $302,184;
$823,819; $491,045; $1,076,699; and
$1,003,891; respectively and 161,487;
20,850; 29,267; 38,001; 13,520;
33,914; and 29,117 shares outstanding;
respectively)......................... $10.33 $21.68 $36.32 $31.75 $34.48
----------- ------------- ------------ ------------- -------------
Class H shares (based on net assets of
$10,904,219; $1,605,343; $1,286,431;
$8,051,943; $3,164,418; $21,176,112;
$9,575,288; respectively and 665,230;
150,052; 124,577; 371,260; 87,260;
667,044; and 277,680 shares
outstanding; respectively)............ $10.33 $21.69 $36.26 $31.75 $34.48
----------- ------------- ------------ ------------- -------------
Class Z shares (based on net assets of
$0; $0; $0; $0; $0; $93,006,300; $0;
respectively and 0; 0; 0; 0; 0;
2,890,014; and 0 shares outstanding;
respectively)......................... -- -- -- $32.18 --
----------- ------------- ------------ ------------- -------------
|
FORTIS STOCK FUNDS
Statements of Operations
For the Year Ended August 31, 1996
ASSET
ALLOCATION VALUE
PORTFOLIO FUND*
----------- ---------
NET INVESTMENT INCOME:
Income:
Interest income..................... $6,154,524 $ 46,878
Dividend income..................... 270,394 91,210
Fee income (Note 1)................. 26,954 --
----------- ---------
Total income.......................... 6,451,872 138,088
----------- ---------
Expenses:
Investment advisory and management
fees (Note 2)..................... 1,396,000 56,988
Distribution fees (Class A) (Note
2)................................ 616,942 12,463
Distribution fees (Class B) (Note
2)................................ 25,047 1,799
Distribution fees (Class C) (Note
2)................................ 17,753 895
Distribution fees (Class H) (Note
2)................................ 81,000 4,441
Registration fees................... 50,897 3,104
Shareholders' notices and reports... 35,596 552
Legal and auditing fees (Note 2).... 26,073 10,244
Custodian fees...................... 41,653 8,467
Directors' fees and expenses........ 9,937 301
Other............................... 12,821 1,028
----------- ---------
Total expenses........................ 2,313,719 100,282
----------- ---------
NET INVESTMENT INCOME (LOSS)............ 4,138,153 37,806
----------- ---------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (NOTE 1):
Net realized gain (loss) from security
transactions........................ 6,979,691 295,009
Net change in unrealized appreciation
(depreciation) of investments....... (4,345,482) 209,297
----------- ---------
NET GAIN ON INVESTMENTS................. 2,634,209 504,306
----------- ---------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS......................... $6,772,362 $542,112
----------- ---------
|
*FOR THE EIGHT-MONTH PERIOD ENDED AUGUST 31, 1996.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
GROWTH & CAPITAL
INCOME CAPITAL FIDUCIARY GROWTH APPRECIATION
FUND* FUND FUND FUND PORTFOLIO
-------- ------------- ----------- ------------- ------------
NET INVESTMENT INCOME:
Income:
Interest income....................... $26,946 $ 2,880,724 $ 721,962 $ 4,802,565 $ 575,269
Dividend income....................... 41,051 1,118,419 221,372 803,030 11,557
Fee income (Note 1)................... -- 80,614 15,597 -- 88,459
-------- ------------- ----------- ------------- ------------
Total income............................ 67,997 4,079,757 958,931 5,605,595 675,285
-------- ------------- ----------- ------------- ------------
Expenses:
Investment advisory and management
fees (Note 2)....................... 19,129 2,519,746 708,986 5,563,562 1,086,889
Distribution fees (Class A) (Note
2).................................. 3,133 714,616 167,939 1,656,623 463,303
Distribution fees (Class B) (Note
2).................................. 1,605 29,886 9,211 44,299 25,035
Distribution fees (Class C) (Note
2).................................. 1,164 6,256 4,182 6,895 5,355
Distribution fees (Class H) (Note
2).................................. 3,827 61,581 23,838 139,664 51,236
Registration fees..................... 3,989 124,695 49,261 86,344 49,875
Shareholders' notices and reports..... 271 57,322 13,330 183,700 33,420
Legal and auditing fees (Note 2)...... 9,088 38,240 26,070 82,300 22,262
Custodian fees........................ 7,056 41,377 13,123 95,000 25,927
Directors' fees and expenses.......... 309 29,671 12,887 49,900 10,088
Other................................. 827 25,582 6,307 56,643 7,955
-------- ------------- ----------- ------------- ------------
Total expenses.......................... 50,398 3,648,972 1,035,134 7,964,930 1,781,345
-------- ------------- ----------- ------------- ------------
NET INVESTMENT INCOME (LOSS)............ 17,599 430,785 (76,203) (2,359,335) (1,106,060)
-------- ------------- ----------- ------------- ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (NOTE 1):
Net realized gain (loss) from security
transactions........................ (340) 24,390,863 2,132,194 55,740,132 2,740,699
Net change in unrealized appreciation
(depreciation) of investments....... 75,046 (14,969,783) 638,704 (25,027,460) 12,902,794
-------- ------------- ----------- ------------- ------------
NET GAIN ON INVESTMENTS................. 74,706 9,421,080 2,770,898 30,712,672 15,643,493
-------- ------------- ----------- ------------- ------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS......................... $92,305 $ 9,851,865 $2,694,695 $ 28,353,337 $14,537,433
-------- ------------- ----------- ------------- ------------
|
FORTIS STOCK FUNDS
Statements of Changes in Net Assets
ASSET ALLOCATION PORTFOLIO
- --------------------------------------------------------------------------------
FOR THE
TEN-MONTH
FOR THE PERIOD ENDED
YEAR ENDED AUGUST 31,
AUGUST 31, 1995
1996 (NOTE 3)
-------------- --------------
OPERATIONS:
Net investment income................. $ 4,138,153 $ 3,425,089
Net realized gain from security
transacations....................... 6,979,691 2,925,495
Net change in unrealized appreciation
(depreciation) of investments in
securities.......................... (4,345,482) 14,902,688
-------------- --------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS......................... 6,772,362 21,253,272
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A............................. (3,826,272) (3,216,965)
Class B............................. (49,452) (4,269)
Class C............................. (39,801) (6,010)
Class H............................. (178,132) (32,044)
From net realized gains on investments
Class A............................. (2,624,363) (736,358)
Class B............................. (29,773) (258)
Class C............................. (27,550) (158)
Class H............................. (136,849) (1,337)
Excess distributions of net realized
gains
Class A............................. (62,850) --
Class B............................. (713) --
Class C............................. (660) --
Class H............................. (3,277) --
-------------- --------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS..... (6,979,692) (3,997,399)
-------------- --------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from sale of shares
Class A (1,434,734 and 934,550
shares)............................ 23,714,022 14,063,680
Class B (271,822 and 42,825
shares)............................ 4,477,846 660,329
Class C (135,425 and 50,730
shares)............................ 2,240,957 771,696
Class H (455,625 and 290,527
shares)............................ 7,521,002 4,432,310
Proceeds from shares issued as a
result of reinvested dividends
Class A (371,458 and 247,207
shares)............................ 6,040,653 3,599,514
Class B (4,825 and 292 shares)...... 78,602 4,448
Class C (4,013 and 402 shares)...... 64,896 6,160
Class H (18,172 and 1,905 shares)... 294,034 29,064
Less cost of repurchase of shares
Class A (1,564,760 and 1,398,654
shares)............................ (25,920,903) (20,935,112)
Class B (49,827 and 1,040 shares)... (827,910) (15,962)
Class C (25,306 and 3,777 shares)... (415,028) (59,287)
Class H (92,983 and 8,016 shares)... (1,532,704) (123,666)
-------------- --------------
NET INCREASE IN NET ASSETS FROM SHARE
TRANSACTIONS............................ 15,735,467 2,433,174
-------------- --------------
TOTAL INCREASE IN NET ASSETS............ 15,528,137 19,689,047
NET ASSETS:
Beginning of period................... 139,083,919 119,394,872
-------------- --------------
End of period (includes undistributed
net investment income of $817,083
and $772,587, respectively)......... $ 154,612,056 $ 139,083,919
-------------- --------------
|
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
FORTIS STOCK FUNDS
Statements of Changes in Net Assets
VALUE FUND
- --------------------------------------------------------------------------------
FOR THE
EIGHT MONTH
PERIOD ENDED
AUGUST 31,
1996
-------------
OPERATIONS:
Net investment income................. $ 37,806
Net realized gain from security
transacations....................... 295,009
Net change in unrealized appreciation
of investments in securities........ 209,297
-------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS......................... 542,112
-------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from sale of shares
Class A (942,985 shares)............ 9,635,095
Class B (62,863 shares)............. 663,710
Class C (21,113 shares)............. 216,052
Class H (156,479 shares)............ 1,645,537
Less cost of repurchase of shares
Class A (26,608 shares)............. (282,982)
Class B (2,871 shares).............. (31,367)
Class C (262 shares)................ (2,836)
Class H (6,427 shares).............. (68,006)
-------------
NET INCREASE IN NET ASSETS FROM SHARE
TRANSACTIONS............................ 11,775,203
-------------
TOTAL INCREASE IN NET ASSETS............ 12,317,315
NET ASSETS:
Beginning of period................... --
-------------
End of period (includes undistributed
net investment income of $37,806)... $ 12,317,315
-------------
|
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
FORTIS STOCK FUNDS
Statements of Changes in Net Assets
GROWTH & INCOME FUND
- --------------------------------------------------------------------------------
FOR THE
EIGHT MONTH
PERIOD ENDED
AUGUST 31,
1996
------------
OPERATIONS:
Net investment income................. $ 17,599
Net realized loss from security
transacations....................... (340)
Net change in unrealized appreciation
of investments in securities........ 75,046
------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS......................... 92,305
------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A............................. (11,470)
Class B............................. (731)
Class C............................. (571)
Class H............................. (1,955)
------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS..... (14,727)
------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from sale of shares
Class A (333,815 shares)............ 3,399,044
Class B (49,494 shares)............. 507,825
Class C (31,937 shares)............. 323,749
Class H (131,281 shares)............ 1,342,093
Proceeds from shares issued as a
result of reinvested dividends
Class A (1,046 shares).............. 10,774
Class B (69 shares)................. 714
Class C (55 shares)................. 561
Class H (189 shares)................ 1,945
Less cost of repurchase of shares
Class A (33,791 shares)............. (348,113)
Class B (369 shares)................ (3,813)
Class C (2,725 shares).............. (28,214)
Class H (6,893 shares).............. (70,939)
------------
NET INCREASE IN NET ASSETS FROM SHARE
TRANSACTIONS............................ 5,135,626
------------
TOTAL INCREASE IN NET ASSETS............ 5,213,204
NET ASSETS:
Beginning of period................... --
------------
End of period (includes undistributed
net investment income of $2,872).... $ 5,213,204
------------
|
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
FORTIS STOCK FUNDS
Statements of Changes in Net Assets
CAPITAL FUND
- --------------------------------------------------------------------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
AUGUST 31, AUGUST 31,
1996 1995
-------------- --------------
OPERATIONS:
Net investment income................. $ 430,785 $ 1,067,881
Net realized gain from security
transacations....................... 24,390,863 24,924
Net change in unrealized appreciation
(depreciation) of investments in
securities.......................... (14,969,783) 51,715,498
-------------- --------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS......................... 9,851,865 52,808,303
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A............................. (570,947) (1,091,491)
Class B............................. -- (147)
Class C............................. -- (24)
Class H............................. -- (324)
From net realized gains on investments
Class A............................. -- (10,244,029)
Class B............................. -- (2,531)
Class C............................. -- (68)
Class H............................. -- (2,368)
-------------- --------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS..... (570,947) (11,340,982)
-------------- --------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from sale of shares
Class A (987,510 and 1,643,037
shares)............................ 21,255,811 30,014,520
Class B (129,679 and 75,949
shares)............................ 2,771,889 1,426,190
Class C (26,449 and 16,667
shares)............................ 569,431 315,873
Class H (228,130 and 194,028
shares)............................ 4,884,573 3,659,178
Proceeds from shares issued as a
result of reinvested dividends
Class A (24,756 and 639,451
shares)............................ 527,539 10,561,400
Class B (0 and 163 shares).......... -- 2,678
Class C (0 and 6 shares)............ -- 91
Class H (0 and 138 shares).......... -- 2,724
Less cost of repurchase of shares
Class A (2,058,920 and 1,940,448
shares)............................ (44,492,325) (35,907,590)
Class B (13,030 and 3,886 shares)... (276,422) (77,466)
Class C (4,719 and 402 shares)...... (101,450) (8,239)
Class H (48,566 and 2,470 shares)... (1,046,356) (47,144)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS................. (15,907,310) 9,942,215
-------------- --------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS.................................. (6,626,392) 51,409,536
NET ASSETS:
Beginning of year..................... 297,185,965 245,776,429
-------------- --------------
End of year (includes undistributed
net investment income of $141,299
and $281,461, respectively)......... $ 290,559,573 $ 297,185,965
-------------- --------------
|
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
FORTIS STOCK FUNDS
Statements of Changes in Net Assets
FIDUCIARY FUND
- --------------------------------------------------------------------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
AUGUST 31, AUGUST 31,
1996 1995
-------------- --------------
OPERATIONS:
Net investment loss................... $ (76,203) $ (288,486)
Net realized gain from security
transacations....................... 2,132,194 928,972
Net change in unrealized appreciation
of investments in securities........ 638,704 11,231,862
-------------- --------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS......................... 2,694,695 11,872,348
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS:
From realized gains on investments
Class A............................. (488,777) (1,980,907)
Class B............................. (4,787) (1,202)
Class C............................. (2,895) (214)
Class H............................. (14,400) (4,499)
-------------- --------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS..... (510,859) (1,986,822)
-------------- --------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from sale of shares
Class A (465,331 and 429,389
shares)............................ 16,670,657 13,255,649
Class B (26,078 and 13,622
shares)............................ 928,152 435,257
Class C (8,014 and 8,195 shares).... 287,310 261,396
Class H (54,592 and 46,909
shares)............................ 1,949,490 1,433,120
Proceeds from shares issued as a
result of reinvested dividends
Class A (14,130 and 69,865
shares)............................ 478,153 1,932,493
Class B (142 and 44 shares)......... 4,778 1,202
Class C (86 and 8 shares)........... 2,894 215
Class H (418 and 163 shares)........ 14,050 4,499
Less cost of repurchase of shares
Class A (471,108 and 336,667
shares)............................ (16,785,992) (10,434,831)
Class B (2,097 and 285 shares)...... (73,634) (9,491)
Class C (2,264 and 519 shares)...... (80,818) (16,128)
Class H (9,636 and 5,186 shares).... (342,867) (160,979)
-------------- --------------
NET INCREASE IN NET ASSETS FROM SHARE
TRANSACTIONS............................ 3,052,173 6,702,402
-------------- --------------
TOTAL INCREASE IN NET ASSETS............ 5,236,009 16,587,928
NET ASSETS:
Beginning of year..................... 65,420,649 48,832,721
-------------- --------------
End of year........................... $ 70,656,658 $ 65,420,649
-------------- --------------
|
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
FORTIS STOCK FUNDS
Statements of Changes in Net Assets
GROWTH FUND
- --------------------------------------------------------------------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
AUGUST 31, 1996 AUGUST 31, 1995
--------------- ---------------
OPERATIONS:
Net investment loss................... $ (2,359,335) $ (811,913)
Net realized gain from security
transacations....................... 55,740,132 38,024,044
Net change in unrealized appreciation
(depreciation) of investments in
securities.......................... (25,027,460) 108,759,948
--------------- ---------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS......................... 28,353,337 145,972,079
--------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS:
From realized gains on investments
Class A............................. (34,148,693) (10,376,803)
Class B............................. (157,748) (2,186)
Class C............................. (26,843) (227)
Class H............................. (562,160) (4,517)
--------------- ---------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS..... (34,895,444) (10,383,733)
--------------- ---------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from sale of shares
Class A (2,983,653 and 3,595,502
shares)............................ 97,098,524 97,595,401
Class B (149,065 and 69,263
shares)............................ 4,751,941 1,891,029
Class C (26,985 and 8,239 shares)... 869,294 233,665
Class H (509,051 and 221,567
shares)............................ 16,308,761 6,230,792
Class Z (141,406 shares)............ 4,652,413 --
Proceeds from shares issued as a
result of reinvested dividends
Class A (1,117,514 and 401,424
shares)............................ 32,989,062 9,887,238
Class B (5,331 and 89 shares)....... 156,195 2,186
Class C (914 and 9 shares).......... 26,803 227
Class H (18,900 and 174 shares)..... 553,959 4,276
Class Z............................. -- --
Less cost of repurchase of shares
Class A (4,694,161 and 4,738,197
shares)............................ (151,752,427) (129,577,320)
Class B (10,130 and 2,273 shares)... (322,261) (70,358)
Class C (2,105 and 128 shares)...... (67,561) (3,645)
Class H (72,266 and 10,382
shares)............................ (2,334,633) (309,141)
Class Z (265,798 shares)............ (8,705,185) --
Issuance of shares in connection with
fund merger (Note 4)
Class Z (3,014,406 shares).......... 95,284,425 --
--------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS................. 89,509,310 (14,115,650)
--------------- ---------------
TOTAL INCREASE IN NET ASSETS............ 47,838,380 121,472,696
NET ASSETS:
Beginning of year..................... 680,062,004 558,589,308
--------------- ---------------
End of year........................... $ 763,029,207 $ 680,062,004
--------------- ---------------
|
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
FORTIS STOCK FUNDS
Statements of Changes in Net Assets
CAPITAL APPRECIATION PORTFOLIO
- --------------------------------------------------------------------------------
FOR THE
TEN-MONTH
FOR THE PERIOD ENDED
YEAR ENDED AUGUST 31,
AUGUST 31, 1995
1996 (NOTE 3)
-------------- --------------
OPERATIONS:
Net investment loss................... $ (1,106,060) $ (521,120)
Net realized gain from security
transacations....................... 2,740,699 1,148,184
Net change in unrealized appreciation
of investments in securities........ 12,902,794 22,420,087
-------------- --------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS......................... 14,537,433 23,047,151
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS:
From realized gains on investments
Class A............................. (684,572) --
Class B............................. (11,199) --
Class C............................. (2,392) --
Class H............................. (25,057) --
-------------- --------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS..... (723,220) --
-------------- --------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from sale of shares
Class A (1,325,665 and 695,629
shares)............................ 42,940,126 17,177,636
Class B (110,699 and 27,699
shares)............................ 3,619,138 727,381
Class C (24,894 and 7,466 shares)... 830,232 195,229
Class H (222,036 and 74,376
shares)............................ 7,344,125 1,892,069
Proceeds from shares issued as a
result of reinvested dividends
Class A (22,686 shares)............. 667,142 --
Class B (375 shares)................ 10,963 --
Class C (80 shares)................. 2,392 --
Class H (852 shares)................ 24,947 --
Less cost of repurchase of shares
Class A (1,023,915 and 696,664
shares)............................ (33,115,734) (17,143,294)
Class B (7,394 and 177 shares)...... (238,700) (4,692)
Class C (3,288 and 35 shares)....... (108,889) (959)
Class H (14,364 and 5,220 shares)... (480,500) (140,589)
-------------- --------------
NET INCREASE IN NET ASSETS FROM SHARE
TRANSACTIONS............................ 21,495,242 2,702,781
-------------- --------------
TOTAL INCREASE IN NET ASSETS............ 35,309,455 25,749,932
NET ASSETS:
Beginning of period................... 94,101,636 68,351,704
-------------- --------------
End of period......................... $ 129,411,091 $ 94,101,636
-------------- --------------
|
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
FORTIS STOCK FUNDS
Notes to Financial Statements
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: The funds are open-end, diversified management investment companies, each of which has different investment objectives and their own investment portfolios and net asset values. Asset Allocation and Capital Appreciation Portfolios are series of Fortis Advantage Portfolios, Inc. ("Fortis Advantage"), Fortis Value Fund, Fortis Growth & Income Fund and Fortis Capital Fund are funds of Fortis Equity Portfolios, Inc. ("Fortis Equity"). Fortis Fiduciary Fund, Inc. ("Fiduciary Fund") and Fortis Growth Fund, Inc. ("Growth Fund") are single portfolio funds. The investment objectives of each portfolio are as follows:
- The objectives of the Fortis Asset Allocation Portfolio is maximum total return on invested capital, to be derived mainly from capital appreciation, dividends and interest.
- The objective of Fortis Value Fund is short and long-term capital appreciation. Current income is only a secondary objective. The portfolio invests primarily in equity securities and selects stocks based on the "value" philosophy.
- The objective of the Fortis Growth & Income Fund is capital appreciation and current income. The fund invests primarily in equity securities that provide an income component.
- The objective of the Fortis Capital Fund is short and long-term capital appreciation. Current income is only a secondary objective.
- The objective of the Fortis Fiduciary Fund is short and long-term capital appreciation. Current income is only a secondary objective.
- The objective of Fortis Growth Fund is short and long-term capital appreciation. Current income is only a secondary objective.
- The objective of Capital Appreciation Portfolio is maximum long-term capital appreciation. Dividend and interest income from investments, if any, is incidental.
The Articles of Incorporation of Fortis Advantage and Fortis Equity permits the Board of Directors to create additional portfolios in the future.
The Advantage Portfolios, Equity Portfolios, Fortis Growth Fund and Fortis Fiduciary Fund offer Class A, Class B, Class C and Class H shares. Fortis Growth Fund also offers Class Z shares.
The Advantage Portfolios, Fortis Capital Fund, Fortis Growth Fund and Fortis Fiduciary Fund began to issue multiple class shares effective November 14, 1994. The inception of Fortis Value Fund and Fortis Growth & Income Fund was December 15, 1995, and the commencement of operations was January 2, 1996. Class A shares are sold with a front-end sales charge. Class B and H shares are sold without a front-end sales charge and may be subject to a contingent deferred sales charge for six years, and such shares automatically convert to Class A after eight years. Class C shares are sold without a front-end sales charge and may be subject to contingent deferred sales charge for one year. Class Z shares are sold without a front-end sales charge, without a contingent deferred sales charge and has no distribution fees. All classes of shares have identical voting, dividend, liquidation and other rights and the same terms and conditions, except that the level of distribution fees charged differs between classes. Income, expenses (other than expenses incurred under each class's distribution agreement) and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.
The significant accounting policies followed by the Funds 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. When market quotations are not readily available, or when restricted or illiquid securities or other assets are being valued, such securities or other assets are valued at fair value as determined in good faith by management under supervision of the Board of Directors. However, debt securities may be valued on the basis of valuations furnished by a pricing service which utilizes electronic data processing techniques to determine valuations for normal institutional-size trading units of debt securities when such valuations are believed to more accurately reflect the fair market value of such securities. 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.
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. Interest income is recorded on the accrual basis. Realized security gains and losses are determined using the identified cost method. The Advantage Asset Allocation Portfolio amortizes original issue discount, long term bond premium and market discount.
For the period ended August 31, 1996, the cost of purchases and proceeds from sales of securities (other than short-term securities) were as follows:
Cost of Proceeds
Purchases from Sales
- --------------------------------------------------------------------------------
Asset Allocation Portfolio................... $ 143,204,992 $ 127,907,633
Fortis Value Fund............................ 13,322,763 2,996,632
Fortis Growth & Income Fund.................. 4,200,429 112,757
Fortis Capital Fund.......................... 67,921,819 109,475,217
Fortis Fiduciary Fund........................ 21,407,269 17,159,665
Fortis Growth Fund........................... 247,047,635 244,334,956
Capital Appreciation Portfolio............... 43,704,826 34,932,187
|
LENDING OF PORTFOLIO SECURITIES: At August 31, 1996, securities were on loan to brokers from the Funds. For collateral, the Fund's custodian received cash which is maintained in a separate account and invested by the custodian in short-term investment vehicles. The risks to the Funds 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 at August 31, 1996 and fee income from securities lending was as follows for the year ended August 31, 1996:
Fee Income
For the Year
Ended
Securities August 31,
On Loan Collateral 1996
- ----------------------------------------------------------------------------------------------
Asset Allocation Portfolio................... $ 30,589,127 $ 31,879,970 $26,954
Fortis Capital Fund.......................... 63,709,159 66,110,128 80,614
Fortis Fiduciary Fund........................ 19,116,670 19,806,823 15,597
Capital Appreciation Portfolio............... 41,597,199 43,026,604 88,459
|
FORTIS STOCK FUNDS
Notes to Financial Statements (continued)
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. For tax purposes, each portfolio is a single taxable entity.
On a calendar year basis, each portfolio intends to distribute substantially all of its net investment income and realized gains, if any, to avoid payment of federal excise taxes.
Net investment income and net realized gains differ for financial statement
and tax purposes primarily because of market discount recognition policies
and wash sale transactions. 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 fund.
On the Statements of Assets and Liabilities, due to permanent book-to-tax
differences related to net operating losses, accumulated net investment loss
has been decreased, resulting in a net reclassification adjustment to reduce
paid-in-capital by the following: Fiduciary Fund $76,203; Growth Fund
$2,359,335 and Capital Appreciation Portfolio $1,106,060.
DEFERRED COSTS: Registration costs are deferred and charged to income over the registration period.
INCOME AND CAPITAL GAINS DISTRIBUTIONS: It is the policy of Asset Allocation Portfolio and Fortis Growth & Income Fund to pay quarterly distributions from net investment income; Capital Appreciation Portfolio, Fortis Value Fund, Fortis Capital Fund, Fortis Fiduciary Fund and Fortis Growth Fund to pay annual distributions from net investment income. Distributions of net realized capital gains, if any, are made annually by each Fund. The distributions are recorded on the record date and are payable in cash or reinvested in additional shares of the portfolio at net asset value without any charge to the shareholder.
ILLIQUID SECURITIES: At August 31, 1996, investments in securities for the Asset Allocation Portfolio included issues that are illiquid. The fund currently limits investments in illiquid securities to 15% of net asset, at market value, at the date of purchase. The aggregate value of such securities at August 31, 1996, was $4,032,981 which represents 2.61% of net assets. Pursuant to guidelines adopted by the Board of Directors, certain unregistered securities may be determined to be liquid and are not included within the percent limitations specified above.
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.
2. PAYMENTS TO RELATED PARTIES: Fortis Advisers, Inc., (Advisers), is the investment adviser for each Fund. Investment advisory and management fees are computed for Fortis Asset Allocation Portfolio, Fortis Value Fund, Fortis Growth & Income Fund, Fortis Capital Fund, Fortis Fiduciary Fund, Fortis Growth Fund, Fortis Capital Appreciation Portfolio at an annual rate of 1% of the first $100 million of average daily net assets, .80% for the next $150 million, and .70% for average daily net assets over $250 million of each portfolio.
In addition to the investment advisory and management fee, Classes A, B, C, and H pay Fortis Investors, Inc. (the funds' principal underwriter) distribution fees equal to .45% of average daily net assets for Class A for each of Asset Allocation and Capital Appreciation Portfolios and .25% of average daily net assets for Class A for each of Value Fund, Growth & Income Fund, Capital Fund, Fiduciary Fund, and Growth Fund and 1.00% of average daily net assets for Classes B, C, and H for each fund on an annual basis, to be used to compensate those who sell shares of the fund and to pay certain other expenses of selling fund shares. Fortis Investors, Inc. also received sales charges (paid by purchasers or redeemers of the funds' shares) as follows:
Class A Class B Class C Class H
- -------------------------------------------------------------------------------------------------
Asset Allocation Portfolio................... $ 536,641 $2,188 $1,814 $ 18,436
Value Fund................................... 56,981 920 7 161
Growth & Income Fund......................... 56,528 9 140 156
Capital Fund................................. 479,520 1,890 232 6,563
Fiduciary Fund............................... 175,842 129 228 3,738
Growth Fund.................................. 1,677,817 3,536 474 34,947
Capital Appreciation Portfolio............... 563,786 3,016 344 5,347
|
For the year ended August 31, 1996, legal fees and expenses were paid as follows to a law firm of which the secretary of the fund is a partner:
Amount
- --------------------------------------------------------
Asset Allocation Portfolio................... $5,500
Value Fund................................... 7,843
Growth & Income Fund......................... 6,723
Capital Fund................................. 15,400
Fiduciary Fund............................... 7,397
Growth Fund.................................. 53,000
Capital Appreciation Portfolio............... 3,637
|
3. CHANGE IN ACCOUNTING PERIOD: Effective August 31, 1995, Fortis Asset Allocation and Capital Appreciation Portfolios changed their fiscal accounting and tax year-end to August 31 (previously October 31).
4. FUND MERGER: Effective with the close of business on March 1, 1996 the Special Portfolios, Inc. -- Stock Portfolio was merged into Fortis Growth Fund as Class Z. The merger was approved by the shareholders of the Stock Portfolio on February 9, 1996. Fortis Growth Fund is the surviving entity for financial reporting and income tax purposes. The merger was accomplished by a tax-free exchange of; net assets of Stock Portfolio on March 1, 1996, of $95,284,425; Stock Portfolio shares exchanged of 2,526,771 with shares issued by Fortis Growth Z of 3,014,406; Stock Portfolio's net assets at March 1, 1996 included unrealized appreciation of $35,128,823 and capital stock of $60,155,602. There were no net assets of Fortis Growth Fund -- Class Z prior to this merger.
5. FINANCIAL HIGHLIGHTS Selected per share historical data for each of the Portfolios was as follows:
Class A
------------------------------------------------------------
Year Ended August 31 Year Ended October 31
---------------------- ----------------------------------
ASSET ALLOCATION PORTFOLIO 1996 1995** 1994 1993 1992
- -------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 16.52 $ 14.44 $ 15.43 $ 14.00 $ 13.34
--------- --------- --------- --------- --------
Operations:
Investment income - net............... .47 .43 .37 .42 .53
Net realized and unrealized gain
(loss) on investments............... .29 2.14 (.31) 1.52 .96
--------- --------- --------- --------- --------
Total from operations................... .76 2.57 .06 1.94 1.49
--------- --------- --------- --------- --------
Distributions to shareholders:
From investment income - net.......... (.47) (.40) (.33) (.51) (.82)
From net realized gains............... (.32) (.09) (.72) -- --
Excess distributions of net realized
gains............................... (.01) -- -- -- (.01)
--------- --------- --------- --------- --------
Total distributions to shareholders..... (.80) (.49) (1.05) (.51) (.83)
--------- --------- --------- --------- --------
Net asset value, end of period.......... $ 16.48 $ 16.52 $ 14.44 $ 15.43 $ 14.00
--------- --------- --------- --------- --------
Total return @.......................... 4.73% 18.25% .48% 14.20% 11.55%
Net assets end of period (000s
omitted).............................. $ 136,656 $ 132,939 $ 119,395 $ 108,488 $ 89,674
Ratio of expenses to average daily net
assets................................ 1.50% 1.57%* 1.55% 1.58% 1.58%
Ratio of net investment income to
average daily net assets.............. 2.85% 3.31%* 2.60% 2.90% 4.05%
Portfolio turnover rate................. 89% 94% 94% 103% 45%
Average commission rate paid{.:}........ $ 0.0743 -- -- -- --
|
* Annualized.
** Ten-month period ended August 31, 1995.
@ These are the total returns during the period, including reinvestment
of all dividend and capital gains distributions without adjustments
for sales charge.
+ For the period From November 14, 1994 (initial offering of shares) to
August 31, 1995
{.:} In accordance with rules adopted by the Securities and Exchange
Commission, disclosure of average commission rate paid is required
beginning with fiscal year 1996. The amount represents total brokerage
commission paid on applicable purchases and sales of securities for
the period, divided by the total number of related shares purchased
and sold.
Class B Class C Class H
------------------- ------------------- -------------------
Year Ended August 31
-----------------------------------------------------------------
ASSET ALLOCATION PORTFOLIO 1996 1995+ 1996 1995+ 1996 1995+
- ------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 16.46 $ 14.27 $ 16.41 $ 14.27 $ 16.44 $ 14.27
-------- ------- -------- ------- -------- -------
Operations:
Investment income - net............... .37 .39 .37 .39 .38 .39
Net realized and unrealized gain
(loss) on investments............... .29 2.26 .29 2.21 .29 2.24
-------- ------- -------- ------- -------- -------
Total from operations................... .66 2.65 .66 2.60 .67 2.63
-------- ------- -------- ------- -------- -------
Distributions to shareholders:
From investment income - net.......... (.39) (.37) (.39) (.37) (.39) (.37)
From net realized gains............... (.32) (.09) (.32) (.09) (.32) (.09)
Excess distributions of net realized
gains............................... (.01) -- (.01) -- (.01) --
-------- ------- -------- ------- -------- -------
Total distributions to shareholders..... (.72) (.46) (.72) (.46) (.72) (.46)
-------- ------- -------- ------- -------- -------
Net asset value, end of period.......... $ 16.40 $ 16.46 $ 16.35 $ 16.41 $ 16.39 $ 16.44
-------- ------- -------- ------- -------- -------
Total return @.......................... 4.12% 19.00% 4.13% 18.64% 4.19% 18.86%
Net assets end of period (000s
omitted).............................. $ 4,411 $ 692 $ 2,641 $ 777 $ 10,904 $ 4,676
Ratio of expenses to average daily net
assets................................ 2.05% 2.12%* 2.05% 2.12%* 2.05% 2.12%*
Ratio of net investment income to
average daily net assets.............. 2.34% 2.51%* 2.33% 2.52%* 2.32% 2.54%*
Portfolio turnover rate................. 89% 94% 89% 94% 89% 94%
Average commission rate paid{.:}........ $ 0.0743 -- $ 0.0743 -- $ 0.0743 --
|
* Annualized.
** Ten-month period ended August 31, 1995.
@ These are the total returns during the period, including reinvestment
of all dividend and capital gains distributions without adjustments
for sales charge.
+ For the period From November 14, 1994 (initial offering of shares) to
August 31, 1995
{.:} In accordance with rules adopted by the Securities and Exchange
Commission, disclosure of average commission rate paid is required
beginning with fiscal year 1996. The amount represents total brokerage
commission paid on applicable purchases and sales of securities for
the period, divided by the total number of related shares purchased
and sold.
FORTIS STOCK FUNDS
Notes to Financial Statements (continued)
5. FINANCIAL HIGHLIGHTS (continued):
CLASS A CLASS B CLASS C CLASS H
-------- -------- -------- --------
YEAR ENDED AUGUST 31
--------------------------------------------
VALUE FUND 1996** 1996** 1996** 1996**
- ---------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 10.00 $ 10.00 $ 10.00 $ 10.00
-------- -------- -------- --------
Operations:
Investment income (loss) - net........ .05 -- -- --
Net realized and unrealized gain
(loss) on investments............... .70 .70 .70 .70
-------- -------- -------- --------
Total from operations................... .75 .70 .70 .70
-------- -------- -------- --------
Distributions to shareholders........... -- -- -- --
-------- -------- -------- --------
Net asset value, end of period.......... $ 10.75 $ 10.70 $ 10.70 $ 10.70
-------- -------- -------- --------
Total return @.......................... 7.50% 7.00% 7.00% 7.00%
Net assets end of period (000s
omitted).............................. $ 9,847 $ 642 $ 223 $ 1,605
Ratio of expenses to average daily net
assets................................ 1.65%* 2.40%* 2.40%* 2.40%*
Ratio of net investment income to
average daily net assets.............. .75%* .00%* .00%* .00%*
Portfolio turnover rate................. 41% 41% 41% 41%
Average commission rate paid {.:}....... $ 0.0521 $ 0.0521 $ 0.0521 $ 0.0521
|
CLASS A CLASS B CLASS C CLASS H
-------- -------- -------- --------
YEAR ENDED AUGUST 31
--------------------------------------------
GROWTH & INCOME FUND 1996** 1996** 1996** 1996**
- ---------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 10.00 $ 10.00 $ 10.00 $ 10.00
-------- -------- -------- --------
Operations:
Investment income - net............... .07 .02 .03 .03
Net realized and unrealized gain
(loss) on investments............... .34 .34 .34 .34
-------- -------- -------- --------
Total from operations................... .41 .36 .37 .37
-------- -------- -------- --------
Distributions to shareholders:
From investment income - net.......... (.06) (.04) (.04) (.04)
-------- -------- -------- --------
Total distributions to shareholders..... (.06) (.04) (.04) (.04)
-------- -------- -------- --------
Net asset value, end of period.......... $ 10.35 $ 10.32 $ 10.33 $ 10.33
-------- -------- -------- --------
Total return @.......................... 4.11% 3.55% 3.65% 3.65%
Net assets end of period (000s
omitted).............................. $ 3,117 $ 508 $ 302 $ 1,286
Ratio of expenses to average daily net
assets................................ 2.33%* 3.08%* 3.08%* 3.08%*
Ratio of net investment income to
average daily net assets.............. 1.16%* .35%* .54%* .44%*
Portfolio turnover rate................. 5% 5% 5% 5%
Average commission rate paid {.:}....... $ 0.0597 $ 0.0597 $ 0.0597 $ 0.0597
|
* Annualized. ** For the period from January 2, 1996 (commemcement of operations) to August 31, 1996. @ These are the total returns during the periods, including reinvestment of all dividend and capital gains distributions without adjustments for sales charge. {.:} In accordance with rules adopted by the Securities and Exchange Commission, disclosure of average commission rate paid is required beginning with fiscal year 1996. The amount represents total brokerage commission paid on applicable purchases and sales of securities for the period, divided by the total number of related shares purchased and sold.
5. FINANCIAL HIGHLIGHTS (continued):
Class A
-------------------------------------------------------------
Year Ended August 31
-------------------------------------------------------------
CAPITAL FUND 1996 1995 1994 1993 1992
- --------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 21.22 $ 18.36 $ 18.12 $ 17.86 $ 16.50
--------- --------- --------- --------- ---------
Operations:
Investment income - net............... .04 .08 .07 .14 .13
Net realized and unrealized gain
(loss) on investments............... .67 3.62 1.73 1.25 1.63
--------- --------- --------- --------- ---------
Total from operations................... .71 3.70 1.80 1.39 1.76
--------- --------- --------- --------- ---------
Distributions to shareholders:
From investment income - net.......... (.04) (.08) (.12) (.09) (.11)
From net realized gains............... -- (.76) (1.44) (1.04) (.29)
--------- --------- --------- --------- ---------
Total distributions to shareholders..... (.04) (.84) (1.56) (1.13) (.40)
--------- --------- --------- --------- ---------
Net asset value, end of period.......... $ 21.89 $ 21.22 $ 18.36 $ 18.12 $ 17.86
--------- --------- --------- --------- ---------
Total return @.......................... 3.36% 21.49% 10.56% 7.88% 10.77%
Net assets end of period (000s
omitted).............................. $ 277,587 $ 291,263 $ 245,776 $ 246,369 $ 223,865
Ratio of expenses to average daily net
assets................................ 1.21% 1.24% 1.21% 1.22% 1.23%
Ratio of net investment income to
average daily net assets.............. .17% .42% .41% .77% .72%
Portfolio turnover rate................. 28% 14% 41% 68% 18%
Average commission rate paid{.:}........ $ 0.0718 -- -- -- --
|
* Annualized.
@ These are the total returns during the period, including reinvestment
of all dividend and capital gains distributions without adjustments
for sales charge.
+ For the period From November 14, 1994 (initial offering of shares) to
August 31, 1995.
{.:} In accordance with rules adopted by the Securities and Exchange
Commission, disclosure of average commission rate paid is required
beginning with fiscal year 1996. The amount represents total brokerage
commission paid on applicable purchases and sales of securities for
the period, divided by the total number of related shares purchased
and sold.
Class B Class C Class H
-------------------- -------------------- --------------------
Year Ended August 31
--------------------------------------------------------------------
CAPITAL FUND 1996 1995+ 1996 1995+ 1996 1995+
- ---------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 21.14 $ 18.35 $ 21.13 $ 18.35 $ 21.14 $ 18.35
-------- -------- -------- -------- -------- --------
Operations:
Investment loss - net................. (.12) -- (.12) -- (.12)
Net realized and unrealized gain
(loss) on investments............... .67 3.58 .67 3.57 .67 3.58
-------- -------- -------- -------- -------- --------
Total from operations................... .55 3.58 .55 3.57 .55 3.58
-------- -------- -------- -------- -------- --------
Distributions to shareholders:
From investment income - net.......... -- (.03) -- (.03) -- (.03)
From net realized gains............... -- (.76) -- (.76) -- (.76)
-------- -------- -------- -------- -------- --------
Total distributions to shareholders..... -- (.79) -- (.79) -- (.79)
-------- -------- -------- -------- -------- --------
Net asset value, end of period.......... $ 21.69 $ 21.14 $ 21.68 $ 21.13 $ 21.69 $ 21.14
-------- -------- -------- -------- -------- --------
Total return @.......................... 2.60% 20.74% 2.60% 20.68% 2.60% 20.74%
Net assets end of period (000s
omitted).............................. $ 4,097 $ 1,527 $ 824 $ 344 $ 8,052 $ 4,052
Ratio of expenses to average daily net
assets................................ 1.96% 1.99%* 1.96% 1.99%* 1.96% 1.99%*
Ratio of net investment loss to average
daily net assets...................... (.60%) (.36%)* (.60%) (.36%)* (.60%) (.37%)*
Portfolio turnover rate................. 28% 14% 28% 14% 28% 14%
Average commission rate paid{.:}........ $ 0.0718 -- $ 0.0718 -- $ 0.0718 --
|
* Annualized.
@ These are the total returns during the period, including reinvestment
of all dividend and capital gains distributions without adjustments
for sales charge.
+ For the period From November 14, 1994 (initial offering of shares) to
August 31, 1995.
{.:} In accordance with rules adopted by the Securities and Exchange
Commission, disclosure of average commission rate paid is required
beginning with fiscal year 1996. The amount represents total brokerage
commission paid on applicable purchases and sales of securities for
the period, divided by the total number of related shares purchased
and sold.
FORTIS STOCK FUNDS
Notes to Financial Statements (continued)
5. FINANCIAL HIGHLIGHTS (continued):
Class A
--------------------------------------------------------
Year Ended August 31
--------------------------------------------------------
FIDUCIARY FUND 1996 1995 1994 1993 1992
- ---------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 35.54 $ 30.23 $ 30.07 $ 28.74 $ 26.77
-------- -------- -------- -------- --------
Operations:
Investment income (loss) - net........ (.03) (.16) (.14) (.09) .04
Net realized and unrealized gain
(loss) on investments............... 1.50 6.68 2.99 3.11 2.68
-------- -------- -------- -------- --------
Total from operations................... 1.47 6.52 2.85 3.02 2.72
-------- -------- -------- -------- --------
Distributions to shareholders:
From investment income - net.......... -- -- -- -- (.11)
From net realized gains............... (.26) 1.21 (2.69) (1.69) (.64)
-------- -------- -------- -------- --------
Total distributions to shareholders..... (.26) 1.21 (2.69) (1.69) (.75)
-------- -------- -------- -------- --------
Net asset value, end of period.......... $ 36.75 $ 35.54 $ 30.23 $ 30.07 $ 28.74
-------- -------- -------- -------- --------
Total return @.......................... 4.18% 22.71% 10.17% 10.58% 10.28%
Net assets end of period (000s
omitted).............................. $ 65,641 $ 63,195 $ 48,833 $ 47,543 $ 43,504
Ratio of expenses to average daily net
assets................................ 1.42% 1.62% 1.45% 1.45% 1.47%
Ratio of net investment income (loss) to
average daily net assets.............. (.07%) (.53%) (.45%) (.31%) .14%
Portfolio turnover rate................. 30% 12% 25% 53% 26%
Average commission rate paid{.:}........ $ 0.0715 -- -- -- --
|
* Annualized.
@ These are the total returns during the period, including reinvestment
of all dividend and capital gains distributions without adjustments
for sales charge.
+ For the period From November 14, 1994 (initial offering of shares) to
August 31, 1995
{.:} In accordance with rules adopted by the Securities and Exchange
Commission, disclosure of average commission rate paid is required
beginning with fiscal year 1996. The amount represents total brokerage
commission paid on applicable purchases and sales of securities for
the period, divided by the total number of related shares purchased
and sold.
Class B Class C Class H
------------------- ------------------- -------------------
Year Ended August 31
-----------------------------------------------------------------
FIDUCIARY FUND 1996 1995+ 1996 1995+ 1996 1995+
- ------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 35.35 $ 30.15 $ 35.40 $ 30.15 $ 35.35 $ 30.15
-------- ------- -------- ------- -------- -------
Operations:
Investment loss - net................. (.33) (.13) (.32) (.12) (.33) (.17)
Net realized and unrealized gain
(loss) on investments............... 1.50 6.54 1.50 6.58 1.50 6.58
-------- ------- -------- ------- -------- -------
Total from operations................... 1.17 6.41 1.18 6.46 1.17 6.41
-------- ------- -------- ------- -------- -------
Distributions to shareholders:
From net realized gains............... (.26) (1.21) (.26) (1.21) (.26) (1.21)
-------- ------- -------- ------- -------- -------
Total distributions to shareholders..... (.26) (1.21) (.26) (1.21) (.26) (1.21)
-------- ------- -------- ------- -------- -------
Net asset value, end of period.......... $ 36.26 $ 35.35 $ 36.32 $ 35.40 $ 36.26 $ 35.35
-------- ------- -------- ------- -------- -------
Total return @.......................... 3.35% 22.38% 3.38% 22.55% 3.35% 22.38%
Net assets end of period (000s
omitted).............................. $ 1,360 $ 473 $ 491 $ 272 $ 3,164 $ 1,481
Ratio of expenses to average daily net
assets................................ 2.17% 2.37%* 2.17% 2.37%* 2.17% 2.37%*
Ratio of net investment loss to average
daily net assets...................... (.78%) (1.31%)* (.82%) (1.31%)* (.80%) (1.29%)*
Portfolio turnover rate................. 30% 12% 30% 12% 30% 12%
Average commission rate paid{.:}........ $ 0.0715 -- $ 0.0715 -- $ 0.0715 --
|
* Annualized.
@ These are the total returns during the period, including reinvestment
of all dividend and capital gains distributions without adjustments
for sales charge.
+ For the period From November 14, 1994 (initial offering of shares) to
August 31, 1995
{.:} In accordance with rules adopted by the Securities and Exchange
Commission, disclosure of average commission rate paid is required
beginning with fiscal year 1996. The amount represents total brokerage
commission paid on applicable purchases and sales of securities for
the period, divided by the total number of related shares purchased
and sold.
5. FINANCIAL HIGHLIGHTS (continued):
Class A
---------------------------------------------------------------
Year Ended August 31
---------------------------------------------------------------
GROWTH FUND 1996 1995 1994 1993 1992
- ----------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 32.66 $ 26.25 $ 29.09 $ 24.31 $ 24.40
--------- --------- ----------- --------- ---------
Operations:
Investment income (loss) - net........ (.11) (.04) (.10) (.06) .05
Net realized and unrealized gain
(loss) on investments............... 1.30 6.95 (.88) 5.52 1.16
--------- --------- ----------- --------- ---------
Total from operations................... 1.19 6.91 (.98) 5.46 1.21
--------- --------- ----------- --------- ---------
Distributions to shareholders:
From investment income - net.......... -- -- -- (.04) (.02)
From net realized gains............... (1.71) (.50) (1.86) (.64) (1.28)
--------- --------- ----------- --------- ---------
Total distributions to shareholders..... (1.71) (.50) (1.86) (.68) (1.30)
--------- --------- ----------- --------- ---------
Net asset value, end of period.......... $ 32.14 $ 32.66 $ 26.25 $ 29.09 $ 24.31
--------- --------- ----------- --------- ---------
Total return @.......................... 4.09% 26.92% (3.77%) 22.69% 4.72%
Net assets end of period (000s
omitted).............................. $ 641,061 $ 670,753 $ 558,589 $ 585,117 $ 473,258
Ratio of expenses to average daily net
assets................................ 1.09% 1.13% 1.09% 1.10% 1.13%
Ratio of net investment income (loss) to
average daily net assets.............. (.33%) (.13%) (.36%) (.20%) .24%
Portfolio turnover rate................. 32% 27% 23% 49% 33%
Average commission rate paid{.:}........ $ 0.0709 -- -- -- --
|
@ These are the total returns during the periods, including reinvestment
of all dividend and capital gains distributions without adjustments
for sales charge.
* Annualized.
** For the period from November 14, 1994 (initial offering of shares) to
August 31, 1995.
*** For the period from March 1,1996 (commencement of operations) to
August 31, 1996.
{.:} In accordance with rules adopted by the Securities and Exchange
Commission, disclosure of average commission rate paid is required
beginning with fiscal year 1996. The amount represents total brokerage
commission paid on applicable purchases and sales of securities for
the period, divided by the total number of related shares purchased
and sold.
CLASS B CLASS C CLASS H CLASS Z
------------------- ------------------- ------------------- --------
YEAR ENDED AUGUST 31
-----------------------------------------------------------------------------
GROWTH FUND 1996 1995** 1996 1995** 1996 1995** 1996***
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 32.48 $25.85 $ 32.49 $25.85 $ 32.49 $25.85 $ 31.61
-------- ------- -------- ------- -------- ------- --------
Operations:
Investment loss - net................. (.32) (.13) (.33) (.10) (.33) (.11) --
Net realized and unrealized gain
(loss) on investments............... 1.30 7.26 1.30 7.24 1.30 7.25 .57
-------- ------- -------- ------- -------- ------- --------
Total from operations................... .98 7.13 .97 7.14 .97 7.14 .57
-------- ------- -------- ------- -------- ------- --------
Distributions to shareholders:
From net realized gains............... (1.71) (.50) (1.71) (.50) (1.71) (.50) --
-------- ------- -------- ------- -------- ------- --------
Total distributions to shareholders..... (1.71) (.50) (1.71) (.50) (1.71) (.50) --
-------- ------- -------- ------- -------- ------- --------
Net asset value, end of period.......... $ 31.75 $32.48 $ 31.75 $32.49 $ 31.75 $32.49 $ 32.18
-------- ------- -------- ------- -------- ------- --------
Total return @.......................... 3.45% 28.17% 3.41% 28.21% 3.41% 28.21% 1.80%
Net assets end of period (000s
omitted).............................. $ 6,710 $2,179 $ 1,077 $ 264 $ 21,176 $6,867 $93,006
Ratio of expenses to average daily net
assets................................ 1.84% 1.88%* 1.84% 1.88%* 1.84% 1.88%* .84%*
Ratio of net investment income (loss) to
average daily net assets.............. (1.07%) (1.09%)* (1.07%) (1.10%)* (1.07%) (1.10%)* .01%*
Portfolio turnover rate................. 32% 27% 32% 27% 32% 27% 32%
Average commission rate paid{.:}........ $ 0.0709 -- $ 0.0709 -- $ 0.0709 -- $0.0709
|
@ These are the total returns during the periods, including reinvestment
of all dividend and capital gains distributions without adjustments
for sales charge.
* Annualized.
** For the period from November 14, 1994 (initial offering of shares) to
August 31, 1995.
*** For the period from March 1,1996 (commencement of operations) to
August 31, 1996.
{.:} In accordance with rules adopted by the Securities and Exchange
Commission, disclosure of average commission rate paid is required
beginning with fiscal year 1996. The amount represents total brokerage
commission paid on applicable purchases and sales of securities for
the period, divided by the total number of related shares purchased
and sold.
FORTIS STOCK FUNDS
Notes to Financial Statements (continued)
5. FINANCIAL HIGHLIGHTS (continued):
Class A
----------------------------------------------------------
Year Ended August 31 Year Ended October 31
---------------------- --------------------------------
CAPITAL APPRECIATION PORTFOLIO 1996 1995+ 1994 1993 1992
- -----------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 30.67 $ 23.05 $ 27.38 $ 19.85 $ 19.80
--------- --------- -------- -------- --------
Operations:
Investment loss - net................. (.29) (.17) (.12) (.30) (.17)
Net realized and unrealized gain
(loss) on investments............... 4.61 7.79 (2.45) 7.83 .22
--------- --------- -------- -------- --------
Total from operations................... 4.32 7.62 (2.57) 7.53 .05
--------- --------- -------- -------- --------
Distributions to shareholders:
From net realized gains............... (.23) -- (1.76) -- --
--------- --------- -------- -------- --------
Total distributions to shareholders..... (.23) -- (1.76) -- --
--------- --------- -------- -------- --------
Net asset value, end of period.......... $ 34.76 $ 30.67 $ 23.05 $ 27.38 $ 19.85
--------- --------- -------- -------- --------
Total return @.......................... 14.21% 33.06% (9.56%) 37.93% .25%
Net assets end of period (000s
omitted).............................. $ 114,310 $ 90,918 $ 68,352 $ 58,434 $ 43,207
Ratio of expenses to average daily net
assets................................ 1.56% 1.69%* 1.62% 1.62% 1.68%
Ratio of net investment loss to average
daily net assets...................... (.96%) (.82%)* (.61%) (1.23%) (.88%)
Portfolio turnover rate................. 34% 21% 36% 60% 43%
Average commission rate paid{.:}........ $ 0.0691 -- -- -- --
|
* Annualized.
** For the period from November 14, 1994 (initial offering of shares) to
August 31, 1995.
@ These are the total returns during the period, including reinvestment
of all dividend and capital gains distributions without adjustments
for sales charge.
+ Ten-month period ended August 31, 1995.
{.:} In accordance with rules adopted by the Securities and Exchange
Commission, disclosure of average commission rate paid is required
beginning with fiscal year 1996. The amount represents total brokerage
commission paid on applicable purchases and sales of securities for
the period divided by the total number of related shares purchased and
sold.
Class B Class C Class H
------------------- ------------------- -------------------
Year Ended August 31
-----------------------------------------------------------------
CAPITAL APPRECIATION PORTFOLIO 1996 1995** 1996 1995** 1996 1995**
- ------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period.... $ 30.57 $22.45 $ 30.58 $22.45 $ 30.58 $22.45
-------- ------- -------- ------- -------- -------
Operations:
Investment loss - net................. (.49) (.35) (.48) (.36) (.48) (.36)
Net realized and unrealized gain
(loss) on investments............... 4.61 8.47 4.61 8.49 4.61 8.49
-------- ------- -------- ------- -------- -------
Total from operations................... 4.12 8.12 4.13 8.13 4.13 8.13
-------- ------- -------- ------- -------- -------
Distributions to shareholders:
From net realized gains............... (.23) -- (.23) -- (.23) --
-------- ------- -------- ------- -------- -------
Total distributions to shareholders..... (.23) -- (.23) -- (.23) --
-------- ------- -------- ------- -------- -------
Net asset value, end of period.......... $ 34.46 $30.57 $ 34.48 $30.58 $ 34.48 $30.58
-------- ------- -------- ------- -------- -------
Total return @.......................... 13.60% 36.17% 13.62% 36.21% 13.62% 36.21%
Net assets end of period (000s
omitted).............................. $ 4,522 $ 841 $ 1,004 $ 227 $ 9,575 $2,115
Ratio of expenses to average daily net
assets................................ 2.11% 2.24%* 2.11% 2.24%* 2.11% 2.24%*
Ratio of net investment loss to average
daily net assets...................... (1.47%) (1.61%)* (1.46%) (1.62%)* (1.46%) (1.62%)*
Portfolio turnover rate................. 34% 21% 34% 21% 34% 21%
Average commission rate paid{.:}........ $ 0.0691 -- $ 0.0691 -- $ 0.0691 --
|
* Annualized.
** For the period from November 14, 1994 (initial offering of shares) to
August 31, 1995.
@ These are the total returns during the period, including reinvestment
of all dividend and capital gains distributions without adjustments
for sales charge.
+ Ten-month period ended August 31, 1995.
{.:} In accordance with rules adopted by the Securities and Exchange
Commission, disclosure of average commission rate paid is required
beginning with fiscal year 1996. The amount represents total brokerage
commission paid on applicable purchases and sales of securities for
the period divided by the total number of related shares purchased and
sold.
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders
Fortis Advantage Portfolios, Inc.
Fortis Equity Portfolios, Inc.
Fortis Fiduciary Fund, Inc.
Fortis Growth Fund, Inc.:
We have audited the accompanying statements of assets and liabilities, including the schedules of investments in securities, of Fortis Asset Allocation Portfolio and Fortis Capital Appreciation Portfolio (portfolios within Fortis Advantage Portfolios, Inc.), Fortis Capital Fund, Fortis Value Fund, and Fortis Growth & Income Fund (portfolios within Fortis Equity Portfolios, Inc.), Fortis Fiduciary Fund, Inc., and Fortis Growth Fund, Inc. as of August 31, 1996 and the related statements of operations, the statements of changes in net assets, and the financial highlights for each of the periods presented. These financial statements and the financial highlights are the responsibility of fund management. Our responsibility is to express an opinion on these financial statements and the financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and the financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Investment securities held in custody are confirmed to us by the custodian. As to securities purchased and sold but not received or delivered, we request confirmations from brokers, and where replies are not received, we carry out other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and the financial highlights referred to above present fairly, in all material respects, the financial position of Fortis Asset Allocation Portfolio, Fortis Capital Appreciation Portfolio, Fortis Capital Fund, Fortis Value Fund, Fortis Growth & Income Fund, Fortis Fiduciary Fund, Inc., and Fortis Growth Fund, Inc. as of August 31, 1996 and the results of their operations, changes in their net assets and the financial highlights for each of the periods presented, in conformity with generally accepted accounting principles.
KPMG Peat Marwick LLP
Minneapolis, Minnesota
October 7, 1996
FEDERAL INCOME TAX INFORMATION
The information set forth below is for the fund's fiscal year as required by federal tax law. Shareholders, however, must report distributions on a calendar year basis for income tax purposes which may include distributions for portions of two fiscal years of the fund. Accordingly, the information needed by shareholders for income tax purposes will be sent to them in early 1997. Shareholders may wish to consult a tax advisor on how to report distributions for state and local purposes.
Fortis Asset Allocation Portfolio, Fortis Growth & Income Fund and Fortis Capital Fund paid income distributions, taxable as dividend income, of which 5.30%, 100% and 100% and qualfied for deduction by corporations. Detailed below are the per share distributions made for the fiscal period ended August 31, 1996.
FORTIS ASSET ALLOCATION PORTFOLIO
Ordinary Income Per Share
RECORD DATE Class A Class B Class C Class H
--------------------------------------------------
September 19, 1995........................................ $ 0.130 $ 0.110 $ 0.110 $ 0.110
December 19, 1995......................................... 0.120 0.100 0.100 0.100
March 18, 1996............................................ 0.105 0.085 0.085 0.085
June 18, 1996............................................. 0.120 0.100 0.100 0.100
----------- ----------- ----------- -----------
Total Distributions....................................... $ 0.475 $ 0.395 $ 0.395 $ 0.395
----------- ----------- ----------- -----------
Short-Term Capital Gain Per Share
December 19, 1995......................................... $ 0.069 $ 0.069 $ 0.069 $ 0.069
----------- ----------- ----------- -----------
Long-Term Capital Gain Per Share
December 19, 1995......................................... $ 0.255 $ 0.255 $ 0.255 $ 0.255
----------- ----------- ----------- -----------
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FORTIS GROWTH & INCOME
Ordinary Income Per Share
RECORD DATE Class A Class B Class C Class H
--------------------------------------------------
March 18, 1996............................................ 0.030 0.020 0.020 0.020
June 18, 1996............................................. 0.030 0.015 0.015 0.015
----------- ----------- ----------- -----------
Total Distributions....................................... $ 0.060 $ 0.035 $ 0.035 $ 0.035
----------- ----------- ----------- -----------
|
FORTIS CAPITAL FUND
Ordinary Income Per Share
RECORD DATE Class A Class B Class C Class H
--------------------------------------------------
September 12, 1995........................................ $ 0.015 $ -- $ -- $ --
December 12, 1995......................................... 0.027 -- -- --
----------- ----------- ----------- -----------
Total Distributions....................................... $ 0.042 $ -- $ -- $ --
----------- ----------- ----------- -----------
|
FORTIS FIDUCIARY FUND
Long-Term Capital Gain Per Share
RECORD DATE Class A Class B Class C Class H
--------------------------------------------------
December 19, 1995......................................... $ 0.255 $ 0.255 $ 0.255 $ 0.255
----------- ----------- ----------- -----------
|
FORTIS GROWTH FUND
Long-Term Capital Gain Per Share
RECORD DATE Class A Class B Class C Class H Class Z
---------------------------------------------------------------
December 19, 1995....................... $ 1.706 $ 1.706 $ 1.706 $ 1.706 --
----------- ----------- ----------- ----------- -----------
|
FORTIS CAPITAL APPRECIATION
Long-Term Capital Gain Per Share
RECORD DATE Class A Class B Class C Class H
--------------------------------------------------
December 19, 1995......................................... $ 0.226 $ 0.226 $ 0.226 $ 0.226
----------- ----------- ----------- -----------
|
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, HAVERFORD COLLEGE. PRIOR TO
JULY 1996, PRESIDENT MACALESTER
COLLEGE
Benjamin S. Jaffray CHAIRMAN, SHEFFIELD GROUP, LTD.
Jean L. King PRESIDENT, COMMUNI-KING
Dean C. Kopperud CHIEF EXECUTIVE OFFICER AND DIRECTOR,
FORTIS ADVISERS, INC. PRESIDENT AND
DIRECTOR, FORTIS INVESTORS, INC.
SENIOR VICE PRESIDENT AND DIRECTOR,
FORTIS BENEFITS INSURANCE COMPANY,
TIME INSURANCE COMPANY
Edward M. Mahoney PRIOR TO JANUARY, 1995, CHAIRMAN AND
CHIEF EXECUTIVE OFFICER, FORTIS
ADVISERS, INC., FORTIS INVESTORS,
INC.
Robb L. Prince FINANCIAL AND EMPLOYEE BENEFIT
CONSULTANT PRIOR TO JULY, 1995, VICE
PRESIDENT AND TREASURER, JOSTENS,
INC.
Leonard J. Santow PRINCIPAL, GRIGGS & SANTOW, INC.
Joseph M. Wikler INVESTMENT CONSULTANT AND PRIVATE
INVESTOR PRIOR TO JANUARY, 1994,
DIRECTOR OF RESEARCH, CHIEF
INVESTMENT OFFICER, PRINCIPAL, AND
DIRECTOR, THE ROTHSCHILD CO.
|
OFFICERS
Dean C. Kopperud
PRESIDENT AND DIRECTOR
Robert W. Beltz, Jr.
VICE PRESIDENT
James S. Byrd
VICE PRESIDENT
Charles J. Dudley
VICE PRESIDENT
Thomas D. Gualdoni
VICE PRESIDENT
Maroun M. Hayek
VICE PRESIDENT
Howard G. Hudson
VICE PRESIDENT
Robert C. Lindberg
VICE PRESIDENT
Charles L. Mehlhouse
VICE PRESIDENT
Kevin J. Michels
VICE PRESIDENT
Jon H. Nicholson
VICE PRESIDENT
Fred Obser
VICE PRESIDENT
Dennis M. Ott
VICE PRESIDENT
David A. Peterson
VICE PRESIDENT
Nicholas L. M. de Peyster
VICE PRESIDENT
Stephen M. Poling
VICE PRESIDENT
Stephen M. Rickert
VICE PRESIDENT
Richard P. Roche
VICE PRESIDENT
Rhonda J. Schwartz
VICE PRESIDENT
Keith R. Thomson
VICE PRESIDENT
Christopher J. Woods
VICE PRESIDENT
Gary N. Yalen
VICE PRESIDENT
Michael J. Radmer
SECRETARY
Tamara L. Fagely
TREASURER
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 Norwest Bank Minnesota N.A.
MINNEAPOLIS, MINNESOTA
GENERAL COUNSEL Dorsey & Whitney P.L.L.P.
MINNEAPOLIS, MINNESOTA
INDEPENDENT AUDITORS KPMG Peat Marwick LLP
MINNEAPOLIS, MINNESOTA
|
The use of this material is authorized only when preceded or accompanied by a prospectus.
FORTIS FINANCIAL GROUP
Fortis Financial Group (FFG) provides solutions for customers' financial needs using mutual funds, annuities and life insurance. Besides our own array of quality products, we create and deliver customized products for other financial service providers. Like the Fortis name, which comes from the Latin for strong and steadfast, we concentrate on the customer relationships we build, the services we provide, the solutions we offer and the performance we seek.
FFG includes Fortis Advisers, Inc., an established money manager, as well as Fortis Investors, Inc., a broker dealer with nationwide sales and marketing influence. The guarantees in our insurance products are underwritten by Fortis Benefits Insurance Company and Time Insurance Company.
Fortis Financial Group is part of Fortis, Inc., a financial services company that provides specialty insurance and investment products to individuals, businesses, associations and other financial services organizations in the United States. Fortis, Inc., is part of Fortis, a worldwide group of companies active in the fields of insurance, banking and investment. Fortis is jointly owned by Fortis AMEV of The Netherlands and Fortis AG of Belgium.
[LOGO]-Registered Trademark-
FORTIS FINANCIAL GROUP
P.O. Box 64284
St. Paul, MN 55164
FORTIS STOCK FUNDS
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PLEASE RECYCLE.
|
98144 (Ed. 10/96)