<PAGE>
--------------------------
Farm Bureau Mutual Funds
FBL Series Fund, Inc.
[LOGO]
SEMI-ANNUAL REPORT
JANUARY 31, 1997
INVESTMENT MANAGER AND
PRINCIPAL UNDERWRITER
FBL INVESTMENT ADVISORY
SERVICES, INC.
5400 UNIVERSITY AVENUE
WEST DES MOINES, IA 50266
1-800-247-4170 (OUTSIDE IOWA)
1-800- 422-3175 (IN IOWA)
225-5586 (DES MOINES)
This report is not to be
FARM BUREAU MUTUAL FUNDS [LOGO] distributed
5400 UNIVERSITY AVENUE unless preceded or accompanied by
WEST DES MOINES, IOWA 50266 [LOGO] a prospectus.
737-027(97)
<PAGE>
PRESIDENT'S LETTER
Dear Shareholder,
1996 was a good year - better than expected on almost every front: inflation
surprises were on the downside, unemployment was very low and bond yields rose
substantially (even though well off the yearly highs). All seems to be well, but
we do wonder why personal bankruptcies are at record levels.
The equity markets continue to confound the few remaining bears, reaching
unprecedented levels by most valuation markers. The month of November witnessed
the most remarkable stock market action in the memory of mankind as the Dow
Jones Industrial Average (DJIA) gained 8.2% in valuation. This surge capped-off
an otherwise strong year, which also came on the heels of a powerful (+37.4%)
1995 performance. Consecutive years of such strong equity market performance
have been historically infrequent, and subsequent years have tended to be
subpar. But as this market cycle has broken every other rule, who would bet
against it in 1997?
Our greatest concern is, and has been, related to the expectations of this
bull market's participants. That the average mutual fund investor is
anticipating a continuation of returns in excess of long-term norms is well
documented. It's not that these folks shouldn't own equity funds, they should.
However, they should own equities with an awareness of how market performance
tends to regress toward its long-term mean and what that may imply for them.
The S&P 500 produced a total return of over 16% per year for the 15-year
period ended December 31, 1964. Expectations then, like now, ran high. For the
subsequent 15 years ending December 31, 1979, the S&P generated only a 5.6%
compounded annual return. Even that performance didn't make you a fool to own
stocks; stocks still outperformed bonds over the 15-year period. But such weak
results probably spoiled some plans for early retirement.
At the beginning of 1965, the "long-term" (dating back to 1926) performance
record for stocks was 10.4%, today it is 10.7%. By underperforming (at times
painfully) in the late '60s and through the '70s, the market regressed from 16%
back toward the "roughly 10%" mean.
Today, stocks still make sense for the true long-term investor, but if you
are counting on a continuation of the 16%+ average over the past fifteen years
to make your retirement plan work, you may want to review your budget and look
for ways to increase your annual contributions. If returns stay strong, that's
great. But it may be safer to plan for a more tepid pace of growth.
We urge you to make your asset allocation decisions based on long-term
market averages, not on recent history (contact your registered representative
for a copy of our "Keys to Investing" brochure). Mutual fund investors have
largely ignored bonds over the past few years. Perhaps, you should also consider
the risk reduction benefits utilizing fixed-income securities, including high
yield bonds, which offer unique diversification characteristics (relatively low
correlation with either stocks or high quality bonds).
For the actively managed FBL Series Fund, Inc. portfolios (other than the
passive Blue Chip Portfolio) we constantly assess the securities held to ensure
that valuations are reasonable. In so doing,
3
<PAGE>
we seek to produce attractive risk-adjusted performance and create lasting value
for our shareholders. The following paragraphs describe how we are currently
striking a balance between risk and potential return for the various portfolios:
VALUE GROWTH: The Value Growth Portfolio benefitted from its above-average
exposure to the financial sector. Portfolio gains were led by many of our
financial holdings such as General Growth Properties, a real estate investment
trust, and our overweighted positions in the following bank stocks: Centennial
Bancorp, CU Bancorp and Community First Bankshares. These stocks represented
approximately 15% of the portfolio assets. We continue to favor smaller bank
holding companies that are likely to benefit from the merger and consolidation
activity in this industry. Also, we have added to our positions in healthcare
(R.P. Scherer) and convenience stores (Casey's General Stores). Our goal is to
be invested in stocks which have appreciation potential at an acceptable level
of risk.
HIGH GRADE BOND: Although overall Treasury yields changed little during the
six-month period from 8/01/96 to 1/31/97, they were very volatile during this
period. The 30-year Treasury started the period at 6.74%, dropped to 6.36% by
12/02/96 and then rose to 6.79% on 1/31/97. In general, we view the current
level of interest rates as offering reasonable value based on the current
economic fundamentals, and we will be more inclined to extend the duration of
the Portfolio to lock in these higher yield levels.
By extending the duration of the Portfolio, which will make it more
sensitive to interest rate changes, a significant portion of the Portfolio will
be held in high coupon, callable bonds that offer attractive, incremental yields
relative to similar non-callable issues. These types of corporate issues, due to
their call features, tend to go up in price less than non-callable issues when
interest rates drop; and conversely, due to their incremental yield, tend to go
down less than non-callable issues. Our Portfolio returns should continue to lag
the more aggressive bond funds in both up and down markets.
New purchases to the Portfolio will likely be concentrated in
mortgage-backed and/or Treasury issues as it is felt that the historically
narrow spreads presently available in the corporate market do not adequately
compensate investors for taking on the credit and market risk inherent in
corporate bonds.
HIGH YIELD BOND: During the past six months, the high yield bond market
continued to outperform the high grade corporate bond market. The reasons for
this outperformance were: the higher current yield of high yield bonds, a
general decrease in yield spreads as investors continued to take comfort in the
historically low default rate currently on these bonds and the outlook that the
economy and financial markets will remain strong, thus helping to keep future
default rates down.
Presently, high yield spreads are at historically narrow levels, which
suggests that most, if not all, of the positive news has been priced in. Given
the lack of additional spread to absorb any unforseen negative surprises at this
time, we feel a more aggressive stance toward this market is not warranted, and
no major changes to the Portfolio are planned.
MANAGED: The Managed Portfolio continues to seek securities offering high
income with modest growth potential. This Portfolio uses a value philosophy, but
concentrates on securities which produce an income stream twice that of the S&P
500. Currently, the S&P 500 is yielding a minuscule 1.9%. We achieve higher
income by investing in a mixture of high dividend-paying stocks, preferreds,
convertibles and corporate bonds.
We have added to our convertible securities in the banking sector. We
continue to find value in owning the convertible securities of smaller bank
holding companies, as these securities are available with current yields ranging
from 4% - 6%, in addition to their attractive upside potential. Our
4
<PAGE>
overweighted positions in General Growth Properties (REIT) and U.S. Surgical
(healthcare) have aided portfolio performance as these stocks have recently made
new highs. We continue to seek out lower-risk, high-return investment
opportunities.
MONEY MARKET: During 1996, the money markets played out a number of
scenarios based on expectations of what the Fed would do. In January of last
year, the Federal Reserve eased the Fed funds rate 25 basis points, and it was
anticipated we would see another easing in the spring. However, as strong
employment numbers were released, the markets expected the Fed to increase rates
at its August meeting. The Fed held firm in August and has continued to hold
steady throughout the fall. Apparently, the Fed feels the U.S. economy is doing
fine, despite the markets' gyrations over expectations.
BLUE CHIP: True to its passive strategy, the performance of the Blue Chip
Portfolio over the past year has reflected that of the large capitalization
market sector which it represents. The Blue Chip Portfolio will, at all times,
remain substantially invested in common stocks of large companies. This
Portfolio is designed for those investors who prefer substantial exposure to
common stocks at all times, or who wish to make their own market value
judgments.
[INSERT "SPECIMAN SIGNATURE"]
EDWARD M. WIEDERSTEIN
PRESIDENT
March 17, 1997
5
<PAGE>
FBL SERIES FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
HIGH
VALUE GROWTH GRADE BOND
PORTFOLIO PORTFOLIO
------------- ----------
<S> <C> <C>
ASSETS
Investments in securities, at value (cost --
$93,730,357; $9,279,096; $7,487,771;
$31,516,523; $2,761,850; and $12,302,118,
respectively)................................... $ 104,648,062 $9,498,232
Cash.............................................. 13,840
Receivables:
Due from FBL Investment Advisory Services,
Inc...........................................
Accrued dividends and interest.................. 136,431 167,966
Investment securities sold...................... 119,262 13,956
Other Assets.................................... 4,780
------------- ----------
Total Assets...................................... $ 104,922,375 $9,680,154
------------- ----------
------------- ----------
LIABILITIES AND NET ASSETS
Liabilities:
Payable to FBL Investment Advisory Services,
Inc........................................... $ 15,315 $ 4,124
Investment securities purchased................. 1,341,039
Net outstanding redemptions in excess of bank
balances...................................... 19,883
Accrued expenses................................ 2,929
------------- ----------
Total Liabilities................................. 1,356,354 26,936
Net assets applicable to outstanding capital
stock........................................... 103,566,021 9,653,218
------------- ----------
Total Liabilities and Net Assets.................. $ 104,922,375 $9,680,154
------------- ----------
------------- ----------
Shares issued and outstanding as of January 31,
1997............................................ 6,869,195 939,939
NET ASSET VALUE PER SHARE......................... $ 15.08 $ 10.27
------------- ----------
------------- ----------
</TABLE>
SEE ACCOMPANYING NOTES.
6
<PAGE>
<TABLE>
<CAPTION>
HIGH MONEY
YIELD BOND MANAGED MARKET BLUE CHIP
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at value (cost --
$93,730,357; $9,279,096; $7,487,771;
$31,516,523; $2,761,850; and $12,302,118,
respectively)................................... $7,509,306 $33,694,742 $2,761,850 $20,067,234
Cash.............................................. 92,120 23,168 14,923 89,900
Receivables:
Due from FBL Investment Advisory Services,
Inc........................................... 3,258 4,020
Accrued dividends and interest.................. 230,466 89,960 4,128 19,718
Investment securities sold...................... 378,436 35,981
Other Assets.................................... 4,308 4,283
---------- ----------- ----------- -----------
Total Assets...................................... $8,213,586 $33,848,159 $2,784,921 $20,181,135
---------- ----------- ----------- -----------
---------- ----------- ----------- -----------
LIABILITIES AND NET ASSETS
Liabilities:
Payable to FBL Investment Advisory Services,
Inc........................................... $ 4,020 $ 6,180 $ 1,379 $ 6,572
Investment securities purchased................. 57,847
Net outstanding redemptions in excess of bank
balances......................................
Accrued expenses................................ 136 3,687
---------- ----------- ----------- -----------
Total Liabilities................................. 4,156 64,027 5,066 6,572
Net assets applicable to outstanding capital
stock........................................... 8,209,430 33,784,132 2,779,855 20,174,563
---------- ----------- ----------- -----------
Total Liabilities and Net Assets.................. $8,213,586 $33,848,159 $2,784,921 $20,181,135
---------- ----------- ----------- -----------
---------- ----------- ----------- -----------
Shares issued and outstanding as of January 31,
1997............................................ 810,985 2,528,646 2,779,855 650,708
NET ASSET VALUE PER SHARE......................... $ 10.12 $ 13.36 $ 1.00 $ 31.00
---------- ----------- ----------- -----------
---------- ----------- ----------- -----------
</TABLE>
7
<PAGE>
FBL SERIES FUND, INC.
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
VALUE HIGH
GROWTH GRADE BOND
PORTFOLIO PORTFOLIO
----------- -----------
<S> <C> <C>
INVESTMENT INCOME
Dividends......................................... $ 1,101,069
Interest.......................................... 330,487 $ 365,966
----------- -----------
Total Investment Income........................... 1,431,556 365,966
EXPENSES
Paid to FBL Investment Advisory Services, Inc.:
Investment advisory and management fees......... 238,865 19,125
Transfer and dividend disbursing agent fees..... 88,456 15,529
Distribution fees............................... 238,865 23,906
Administrative service fees..................... 119,433 11,953
Accounting fees................................. 23,887 2,391
Custodian fees.................................... 6,907 3,423
Legal fees........................................ 19,825 1,430
Directors' fees and expenses...................... 2,599 260
Reports to shareholders........................... 42,059 4,920
Registration fees................................. 18,366 4,289
Miscellaneous..................................... (8,420) 451
----------- -----------
Total Expenses.................................... 790,842 87,677
Expense Reimbursement.............................
----------- -----------
Net Expenses...................................... 790,842 87,677
----------- -----------
Net Investment Income............................. 640,714 278,289
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain from investment transactions.... 6,055,705 4,512
Change in unrealized appreciation/depreciation of
investments..................................... 8,601,262 94,909
----------- -----------
Net Gain on Investments........................... 14,656,967 99,421
----------- -----------
Net Increase in Net Assets Resulting from
Operations...................................... $15,297,681 $ 377,710
----------- -----------
----------- -----------
</TABLE>
SEE ACCOMPANYING NOTES.
8
<PAGE>
<TABLE>
<CAPTION>
HIGH MONEY
YIELD BOND MANAGED MARKET BLUE CHIP
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends......................................... $ 394,713 $ 159,452
Interest.......................................... $ 358,257 406,917 $ 72,473 36,656
----------- ---------- ----------- ----------
Total Investment Income........................... 358,257 801,630 72,473 196,108
EXPENSES
Paid to FBL Investment Advisory Services, Inc.:
Investment advisory and management fees......... 21,812 91,995 4,681 21,742
Transfer and dividend disbursing agent fees..... 16,660 52,447 7,416 38,554
Distribution fees............................... 19,829 76,663 6,734 43,483
Administrative service fees..................... 9,915 38,331 3,367 21,742
Accounting fees................................. 1,983 7,666 673 4,348
Custodian fees.................................... 3,037 2,799 2,419 3,680
Legal fees........................................ 1,665 7,759 687 3,584
Directors' fees and expenses...................... 216 839 73 469
Reports to shareholders........................... 4,572 16,596 1,055 10,909
Registration fees................................. 3,903 6,826 1,380 6,432
Miscellaneous..................................... (2,951) (5,862) 2,469 (6,004)
----------- ---------- ----------- ----------
Total Expenses.................................... 80,641 296,059 30,954 148,939
Expense Reimbursement............................. (1,323) (4,020)
----------- ---------- ----------- ----------
Net Expenses...................................... 79,318 296,059 26,934 148,939
----------- ---------- ----------- ----------
Net Investment Income............................. 278,939 505,571 45,539 47,169
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain from investment transactions.... 56,331 1,465,013 3,264
Change in unrealized appreciation/depreciation of
investments..................................... 132,693 1,172,880 3,075,806
----------- ---------- ----------- ----------
Net Gain on Investments........................... 189,024 2,637,893 3,079,070
----------- ---------- ----------- ----------
Net Increase in Net Assets Resulting from
Operations...................................... $ 467,963 $3,143,464 $ 45,539 $3,126,239
----------- ---------- ----------- ----------
----------- ---------- ----------- ----------
</TABLE>
9
<PAGE>
FBL SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
VALUE GROWTH
PORTFOLIO
---------------------------
SIX MONTHS
ENDED JANUARY YEAR ENDED
31, 1997 JULY 31,
(UNAUDITED) 1996
-------------- -----------
<S> <C> <C>
OPERATIONS
Net investment income............................. $ 640,714 $ 1,506,458
Net realized gain from investment transactions.... 6,055,705 11,563,616
Change in unrealized appreciation/depreciation of
investments..................................... 8,601,262 6,359
-------------- -----------
Net Increase in Net Assets Resulting from
Operations...................................... 15,297,681 13,076,433
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income............................. (1,089,764) (2,469,514)
Net realized gain from investment transactions.... (11,584,328) (1,454,239)
-------------- -----------
(12,674,092) (3,923,753)
CAPITAL SHARE TRANSACTIONS........................ 14,408,555 6,434,694
CONTRIBUTION FROM AFFILIATE.......................
-------------- -----------
Total Increase in Net Assets...................... 17,032,144 15,587,374
NET ASSETS
Beginning of period............................... 86,533,877 70,946,503
-------------- -----------
End of period (including undistributed net
investment income as set forth below)........... $103,566,021 $86,533,877
-------------- -----------
-------------- -----------
Undistributed Net Investment Income............... $ 45,057 $ 494,106
-------------- -----------
-------------- -----------
</TABLE>
SEE ACCOMPANYING NOTES.
10
<PAGE>
<TABLE>
<CAPTION>
HIGH HIGH
GRADE BOND YIELD BOND
PORTFOLIO PORTFOLIO
--------------------------- ---------------------------
SIX MONTHS SIX MONTHS
ENDED JANUARY YEAR ENDED ENDED JANUARY YEAR ENDED
31, 1997 JULY 31, 31, 1997 JULY 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
-------------- ----------- -------------- -----------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income............................. $ 278,289 $ 541,191 $ 278,939 $ 506,153
Net realized gain from investment transactions.... 4,512 8,240 56,331 99,065
Change in unrealized appreciation/depreciation of
investments..................................... 94,909 (94,954) 132,693 (107,265)
-------------- ----------- -------------- -----------
Net Increase in Net Assets Resulting from
Operations...................................... 377,710 454,477 467,963 497,953
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income............................. (278,289) (541,191) (278,939) (506,153)
Net realized gain from investment transactions.... (91,491) (21,547)
-------------- ----------- -------------- -----------
(278,289) (541,191) (370,430) (527,700)
CAPITAL SHARE TRANSACTIONS........................ 431,623 863,859 762,533 688,604
CONTRIBUTION FROM AFFILIATE.......................
-------------- ----------- -------------- -----------
Total Increase in Net Assets...................... 531,044 777,145 860,066 658,857
NET ASSETS
Beginning of period............................... 9,122,174 8,345,029 7,349,364 6,690,507
-------------- ----------- -------------- -----------
End of period (including undistributed net
investment income as set forth below)........... $9,653,218 $9,122,174 $8,209,430 $7,349,364
-------------- ----------- -------------- -----------
-------------- ----------- -------------- -----------
Undistributed Net Investment Income............... $ 0 $ 0 $ 0 $ 0
-------------- ----------- -------------- -----------
-------------- ----------- -------------- -----------
</TABLE>
11
<PAGE>
FBL SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MANAGED
PORTFOLIO
---------------------------
SIX MONTHS
ENDED JANUARY YEAR ENDED
31, 1997 JULY 31,
(UNAUDITED) 1996
-------------- -----------
<S> <C> <C>
OPERATIONS
Net investment income............................. $ 505,571 $ 860,437
Net realized gain from investment transactions.... 1,465,013 2,276,504
Change in unrealized appreciation/depreciation of
investments..................................... 1,172,880 531,462
-------------- -----------
Net Increase in Net Assets Resulting from
Operations...................................... 3,143,464 3,668,403
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income............................. (432,624) (861,221)
Net realized gain from investment transactions.... (2,710,983) (188,116)
-------------- -----------
(3,143,607) (1,049,337)
CAPITAL SHARE TRANSACTIONS........................ 6,314,499 3,700,902
CONTRIBUTION FROM AFFILIATE....................... 44,982
-------------- -----------
Total Increase in Net Assets...................... 6,314,356 6,364,950
NET ASSETS
Beginning of period............................... 27,469,776 21,104,826
-------------- -----------
End of period (including undistributed net
investment income as set forth below)........... $ 33,784,132 $27,469,776
-------------- -----------
-------------- -----------
Undistributed Net Investment Income............... $ 73,435 $ 488
-------------- -----------
-------------- -----------
</TABLE>
SEE ACCOMPANYING NOTES.
12
<PAGE>
<TABLE>
<CAPTION>
MONEY MARKET BLUE CHIP
PORTFOLIO PORTFOLIO
--------------------------- ---------------------------
SIX MONTHS SIX MONTHS
ENDED JANUARY YEAR ENDED ENDED JANUARY YEAR ENDED
31, 1997 JULY 31, 31, 1997 JULY 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
-------------- ----------- -------------- -----------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income............................. $ 45,539 $ 89,652 $ 47,169 $ 80,169
Net realized gain from investment transactions.... 3,264 187,256
Change in unrealized appreciation/depreciation of
investments..................................... 3,075,806 1,321,836
-------------- ----------- -------------- -----------
Net Increase in Net Assets Resulting from
Operations...................................... 45,539 89,652 3,126,239 1,589,261
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income............................. (45,539) (89,652) (90,090) (87,281)
Net realized gain from investment transactions.... (184,841)
-------------- ----------- -------------- -----------
(45,539) (89,652) (274,931) (87,281)
CAPITAL SHARE TRANSACTIONS........................ 228,301 112,704 2,682,049 3,481,955
CONTRIBUTION FROM AFFILIATE.......................
-------------- ----------- -------------- -----------
Total Increase in Net Assets...................... 228,301 112,704 5,533,357 4,983,935
NET ASSETS
Beginning of period............................... 2,551,554 2,438,850 14,641,206 9,657,271
-------------- ----------- -------------- -----------
End of period (including undistributed net
investment income as set forth below)........... $2,779,855 $2,551,554 $ 20,174,563 $14,641,206
-------------- ----------- -------------- -----------
-------------- ----------- -------------- -----------
Undistributed Net Investment Income............... $ 0 $ 0 $ (8,558) $ 34,363
-------------- ----------- -------------- -----------
-------------- ----------- -------------- -----------
</TABLE>
13
<PAGE>
FBL SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
VALUE GROWTH PORTFOLIO
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
HELD VALUE
------------- -------------
<S> <C> <C>
COMMON STOCKS (69.47%)
CHEMICALS AND ALLIED PRODUCTS (5.09%)
R.P. Scherer Corp.......................................... 93,000(1) $ 5,266,125
COMMUNICATIONS (4.03%)
Aliant Communications, Inc................................. 245,500 4,173,500
DEPOSITORY INSTITUTIONS (6.40%)
Cole Taylor Financial Group, Inc........................... 141,600 3,363,000
CU Bancorp................................................. 251,000 3,263,000
-------------
6,626,000
ELECTRIC, GAS AND SANITARY SERVICES (6.88%)
Citizens Utilities Co., Class B............................ 418,509 4,812,853
Montana Power Co........................................... 105,000 2,310,000
-------------
7,122,853
FOOD STORES (4.82%)
Casey's General Stores, Inc................................ 283,500 4,996,688
FURNITURE AND FIXTURES (4.94%)
Ladd Furniture, Inc........................................ 338,517(1) 5,120,070
HOLDING AND OTHER INVESTMENT OFFICES (8.15%)
Centennial Bancorp......................................... 206,313 3,404,164
General Growth Properties, Inc............................. 160,000 5,040,000
-------------
8,444,164
INSTRUMENTS AND RELATED PRODUCTS (5.46%)
Allied Healthcare Products................................. 89,000 734,250
Pall Corp.................................................. 220,000 4,922,500
-------------
5,656,750
INSURANCE CARRIERS (3.98%)
EMC Insurance Group, Inc................................... 343,100 4,117,200
METAL MINING (0.55%)
Glamis Gold, Ltd........................................... 80,300(1) 572,137
MOTION PICTURES (4.24%)
Disney (Walt) Co........................................... 60,000 4,395,000
NONDEPOSITORY INSTITUTIONS (0.34%)
Berkshire Hathaway, Inc.................................... 10(1) 348,000
</TABLE>
14
<PAGE>
FBL SERIES FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
VALUE GROWTH PORTFOLIO
<TABLE>
<CAPTION>
SHARES
HELD VALUE
------------- -------------
<S> <C> <C>
PRINTING & PUBLISHING (4.53%)
Belo (A.H.) Corp........................................... 123,000 $ 4,689,375
TRANSPORTATION -- BY AIR (3.91%)
Petroleum Helicopters, Inc. (Non-Voting)................... 241,900 4,051,825
WHOLESALE TRADE -- DURABLE GOODS (0.36%)
TBC Corporation............................................ 49,800(1) 373,500
WHOLESALE TRADE -- NONDURABLE GOODS (5.79%)
Howell Corp................................................ 322,160 4,912,940
Super Valu Stores, Inc..................................... 35,000 1,080,625
-------------
5,993,565
-------------
Total Common Stocks.......................................... 71,946,752
PREFERRED STOCKS (13.83%)
DEPOSITORY INSTITUTIONS (7.36%)
Community First Bankshares, Inc., Convertible.............. 104,000 4,563,000
Sterling Financial Corp.................................... 99,300 3,053,475
-------------
7,616,475
INSTRUMENTS AND RELATED PRODUCTS (1.42%)
US Surgical Corp........................................... 37,500 1,471,875
WATER TRANSPORTATION (5.05%)
Sea Containers, Ltd., Convertible.......................... 108,750 5,233,594
-------------
Total Preferred Stocks....................................... 14,321,944
<CAPTION>
PRINCIPAL
AMOUNT
-------------
<S> <C> <C>
CORPORATE BOND (3.03%)
ELECTRONIC AND OTHER ELECTRIC EQUIPMENT (2.12%)
California Microwave, Convertible Sub. Deb., 5.25%, due
12/15/03................................................. $ 2,600,000 2,197,000
METAL MINING (0.91%)
Agnico-Eagle Mines, Ltd., Convertible Sub. Deb., 3.50%, due
1/27/04.................................................. 1,075,000 940,625
-------------
Total Corporate Bonds........................................ 3,137,625
</TABLE>
15
<PAGE>
FBL SERIES FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
VALUE GROWTH PORTFOLIO
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------- -------------
<S> <C> <C>
SHORT-TERM INVESTMENTS (14.72%)
COMMERCIAL PAPER (10.53%)
American General Finance Corp., 5.35%, due 3/11/97......... $ 3,200,000 $ 3,200,000
Deere (John) Capital Corp., 5.35%, due 3/19/97............. 2,700,000 2,700,000
Ford Motor Credit Corp., 5.37%, due 2/13/97................ 2,000,000 2,000,000
IBM Credit Corp., 5.35%, due 3/27/97....................... 3,000,000 3,000,000
-------------
10,900,000
UNITED STATES GOVERNMENT AGENCIES (4.19%)
Federal National Mortgage Assoc., due 2/18/97.............. 525,000 523,700
Federal National Mortgage Assoc., due 2/24/97.............. 750,000 747,417
Federal National Mortgage Assoc., due 4/07/97.............. 3,100,000 3,070,624
-------------
4,341,741
-------------
Total Short-Term Investments................................. 15,241,741
-------------
Total Investments (101.05%).................................. 104,648,062
OTHER ASSETS LESS LIABILITIES (-1.05%)
Cash, receivables and other assets, less liabilities....... (1,082,041)
-------------
Total Net Assets (100.00%)................................... $ 103,566,021
-------------
-------------
</TABLE>
(1) Non-income producing security.
SEE ACCOMPANYING NOTES.
16
<PAGE>
FBL SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
HIGH GRADE BOND PORTFOLIO
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- ----------
<S> <C> <C>
CORPORATE BONDS (63.46%)
APPAREL AND ACCESSORY STORES (0.39%)
TJX Companies, Inc., 9.50%, due 5/01/16.......................... $ 37,000 $ 37,231
COMMUNICATIONS (6.22%)
Hawaiian Telephone Co., 8.00%, due 9/01/01....................... 250,000 255,715
Pacific Telephone & Telegraph Co., 7.25%, due 2/01/08............ 350,000 344,981
----------
600,696
DEPOSITORY INSTITUTIONS (12.52%)
First Bank, N.A., 6.25%, due 8/15/05............................. 450,000 436,748
Midland America Capital Corp., 12.75%, due 11/15/03.............. 175,000 193,522
J.P. Morgan & Co., 7.25%, due 10/01/10........................... 350,000 339,542
Norwest Corp., 9.25%, due 5/01/97................................ 100,000 100,945
Third National Bank, 7.50%, due 11/15/02......................... 137,000 137,934
----------
1,208,691
ELECTRIC, GAS AND SANITARY SERVICES (14.73%)
MDU Resources Group, Inc., 9.125%, due 10/01/16.................. 200,000 213,180
New England Power Co., 8.00%, due 8/01/22........................ 400,000 397,564
Southern California Edison Co., 8.875%, due 5/01/23.............. 120,000 125,462
Southern California Edison Co., 8.875%, due 6/01/24.............. 300,000 312,561
Western Penn Power, 7.875%, due 12/01/04......................... 360,000 373,633
----------
1,422,400
ELECTRONIC & OTHER ELECTRIC EQUIPMENT (2.60%)
Harris Corp., 7.75%, due 12/15/01................................ 250,000 250,600
FOOD AND KINDRED PRODUCTS (1.43%)
Anheuser-Busch Companies, Inc., 8.50%, due 3/01/17............... 133,000 138,522
GENERAL MERCHANDISE STORES (0.65%)
Dayton-Hudson Corporation, 9.25%, due 11/15/16................... 60,000 62,790
HOLDING AND OTHER INVESTMENT OFFICES (7.53%)
Federal Realty Investment Trust, 8.875%, due 1/15/00............. 350,000 370,692
Meditrust, 7.60%, due 9/13/05.................................... 350,000 356,041
----------
726,733
INSURANCE CARRIERS (2.37%)
Torchmark Corporation, 8.625%, due 3/01/17....................... 225,000 228,663
</TABLE>
17
<PAGE>
FBL SERIES FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
HIGH GRADE BOND PORTFOLIO
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- ----------
<S> <C> <C>
OIL AND GAS EXTRACTION (2.44%)
Burlington Resources, Inc., 9.125%, due 10/01/21................. $ 200,000 $ 235,984
PETROLEUM AND COAL PRODUCTS (0.84%)
Pennzoil Co., 9.00%, due 4/01/17................................. 77,000 81,041
PRINTING AND PUBLISHING (3.28%)
Valassis Communications, Inc., 9.55%, due 12/01/03............... 300,000 316,689
RAILROAD TRANSPORTATION (3.80%)
Union Pacific Corp., 8.50%, due 1/15/17.......................... 350,000 366,748
SECURITY AND COMMODITY BROKERS (2.16%)
Lehman Brothers Holdings, Inc., 8.875%, due 11/01/98............. 200,000 208,312
TRANSPORTATION EQUIPMENT (2.50%)
Ford Motor Credit Co., 9.50%, due 9/15/11........................ 200,000 241,134
----------
Total Corporate Bonds.............................................. 6,126,234
ASSET-BACKED SECURITIES (2.65%)
Federal Home Loan Mortgage Corp., 10.15%, due 4/15/06............ 251,048 255,720
MORTGAGE-BACKED SECURITIES (15.27%)
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) (0.65%)
Pool # 503442, 9.50%, due 7/01/05................................ 60,002 63,021
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (14.62%)
Pool # 144332, 9.00%, due 7/15/16................................ 44,703 48,014
Pool # 194692, 8.00%, due 5/15/17................................ 595,831 618,544
Pool # 236070, 10.00%, due 10/15/12.............................. 607,054 658,466
Pool # 307097, 9.00%, due 7/15/21................................ 80,544 85,754
----------
1,410,778
----------
Total Mortgage-Backed Securities................................... 1,473,799
UNITED STATES TREASURY OBLIGATION (4.34%)
U.S. Treasury Note, 7.25%, due 8/15/04........................... 400,000 419,284
</TABLE>
18
<PAGE>
FBL SERIES FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
HIGH GRADE BOND PORTFOLIO
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- ----------
<S> <C> <C>
SHORT-TERM INVESTMENTS (12.67%)
COMMERCIAL PAPER (7.51%)
General Electric Capital Corp., 5.40%, due 4/24/97............... $ 450,000 $ 450,000
IBM Credit Corp., 5.35%, due 3/18/97............................. 275,000 275,000
----------
725,000
UNITED STATES GOVERNMENT AGENCY (5.16%)
Federal Home Loan Mortgage Corp., due 2/26/97.................... 500,000 498,195
----------
Total Short-Term Investments....................................... 1,223,195
----------
Total Investments (98.39%)......................................... 9,498,232
</TABLE>
<TABLE>
<S> <C> <C>
OTHER ASSETS LESS LIABILITIES (1.61%)
Receivables, less liabilities.................................... 154,986
----------
Total Net Assets (100.00%)......................................... $9,653,218
----------
----------
</TABLE>
SEE ACCOMPANYING NOTES.
19
<PAGE>
FBL SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
HIGH YIELD BOND PORTFOLIO
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- ----------
<S> <C> <C>
CORPORATE BONDS (84.48%)
AMUSEMENT AND RECREATION SERVICES (3.43%)
AMF Group, Inc., 10.875%, due 3/15/06.......................... $ 260,000 $ 281,450
APPAREL AND ACCESSORY STORES (2.13%)
Genesco, Inc., 10.375%, due 2/01/03............................ 150,000 153,750
TJX Companies, Inc., 9.50%, due 5/01/16........................ 21,000 21,131
----------
174,881
APPAREL AND OTHER TEXTILE PRODUCTS (6.09%)
Dan River, Inc., 10.125%, due 12/15/03......................... 280,000 290,150
Fieldcrest Cannon, Inc., 11.25%, due 6/15/04................... 200,000 209,500
----------
499,650
AUTO REPAIR, SERVICES AND PARKING (1.51%)
Envirotest Systems Corp., 9.625%, due 4/01/03.................. 150,000 123,750
BUSINESS SERVICES (3.02%)
Borg-Warner Corp., 9.125%, due 5/01/03......................... 250,000 248,125
COMMUNICATIONS (3.23%)
Panamsat, L.P., 9.75%, due 8/01/00............................. 250,000 265,625
DEPOSITORY INSTITUTIONS (4.14%)
First Bank, N.A., 6.25%, due 8/15/05........................... 350,000 339,692
ELECTRIC, GAS AND SANITARY SERVICES (10.96%)
Montana Power Co., 7.50%, due 1/01/98.......................... 136,000 136,366
New England Power Co., 8.00%, due 8/01/22...................... 250,000 248,477
Public Service Company of New Mexico, 5.875%, due 5/01/97...... 150,000 150,156
Southern California Edison Co., 8.875%, due 6/01/24............ 350,000 364,654
----------
899,653
ELECTRONIC AND OTHER ELECTRIC EQUIPMENT (7.54%)
Advanced Micro Devices, Inc., 11.00%, due 8/01/03.............. 360,000 399,600
Amphenol Corp., 12.75%, due 12/15/02........................... 200,000 219,500
----------
619,100
FABRICATED METAL PRODUCTS (2.51%)
Jorgensen (Earle M.) Co., 10.75%, due 3/01/00.................. 200,000 206,000
</TABLE>
20
<PAGE>
FBL SERIES FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
HIGH YIELD BOND PORTFOLIO
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- ----------
<S> <C> <C>
FOOD STORES (3.34%)
P&C Food Markets, Inc., 11.50%, due 10/15/01................... $ 150,000 $ 116,250
Penn Traffic Co., 10.25%, due 2/15/02.......................... 200,000 158,000
----------
274,250
GENERAL MERCHANDISE STORES (4.01%)
Federated Department Stores, Inc., 10.00%, due 2/15/01......... 300,000 329,415
INSURANCE CARRIERS (3.71%)
Torchmark Corp., 8.625%, due 3/01/17........................... 300,000 304,884
LUMBER AND WOOD PRODUCTS (7.55%)
Georgia-Pacific Corp., 9.875%, due 11/01/21.................... 330,000 366,165
Pacific Lumber Co., 10.50%, due 3/01/03........................ 250,000 253,750
----------
619,915
MISCELLANEOUS RETAIL (3.87%)
Eckerd Corp., 9.25%, due 2/15/04............................... 295,000 317,494
PAPER AND ALLIED PRODUCTS (3.19%)
Container Corp. of America, 9.75%, due 4/01/03................. 250,000 262,188
PETROLEUM AND COAL PRODUCTS (2.21%)
Clark Oil & Refining Corp., 10.50%, due 12/01/01............... 175,000 181,563
RUBBER AND MISCELLANEOUS PLASTICS PRODUCTS (3.59%)
Foamex, L.P., 9.50%, due 6/01/00............................... 182,000 188,370
Plastic Specialties & Technologies, Inc., 11.25%, due
12/01/03..................................................... 100,000 106,000
----------
294,370
STONE, CLAY AND GLASS PRODUCTS (5.95%)
Owens-Illinois, Inc., 11.00%, due 12/01/03..................... 200,000 223,000
USG Corp., 9.25%, due 9/15/01.................................. 250,000 265,625
----------
488,625
TRANSPORTATION EQUIPMENT (2.50%)
Preston Corp., 7.00%, due 5/01/11.............................. 306,000 205,020
----------
Total Corporate Bonds............................................ 6,935,650
</TABLE>
21
<PAGE>
FBL SERIES FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
HIGH YIELD BOND PORTFOLIO
<TABLE>
<CAPTION>
SHARES
HELD VALUE
----------- ----------
<S> <C> <C>
COMMON STOCK (0.62%)
TEXTILE MILL PRODUCTS
Bibb Company (The)............................................. 7,490(1) $ 50,558
<CAPTION>
PRINCIPAL
AMOUNT
-----------
<S> <C> <C>
SHORT-TERM INVESTMENTS (6.37%)
UNITED STATES GOVERNMENT AGENCIES
Federal Home Loan Mortgage Corp., due 3/05/97.................. $ 400,000 398,135
Federal National Mortgage Assoc., due 2/03/97.................. 125,000 124,963
----------
Total Short-Term Investments..................................... 523,098
----------
Total Investments (91.47%)....................................... 7,509,306
OTHER ASSETS LESS LIABILITIES (8.53%)
Cash and receivables, less liabilities......................... 700,124
----------
Total Net Assets (100.00%)....................................... $8,209,430
----------
----------
</TABLE>
(1) Non-income producing security.
SEE ACCOMPANYING NOTES.
22
<PAGE>
FBL SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
MANAGED PORTFOLIO
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
HELD VALUE
---------- -----------
<S> <C> <C>
COMMON STOCKS (22.39%)
COMMUNICATIONS (2.11%)
Aliant Communications, Inc..................................... 42,000 $ 714,000
ELECTRIC, GAS AND SANITARY SERVICES (8.10%)
Citizens Utilities Co., Class B................................ 127,621 1,467,641
Montana Power Co............................................... 57,600 1,267,200
-----------
2,734,841
HOLDING AND OTHER INVESTMENT OFFICES (8.45%)
Centennial Bancorp............................................. 60,450 997,425
General Growth Properties, Inc................................. 59,000 1,858,500
-----------
2,855,925
INSURANCE CARRIERS (3.73%)
EMC Insurance Group, Inc....................................... 105,000 1,260,000
-----------
Total Common Stocks.............................................. 7,564,766
PREFERRED STOCKS (26.30%)
DEPOSITORY INSTITUTIONS (7.29%)
Community First Bankshares, Inc., Convertible.................. 34,819 1,527,684
Sterling Financial Corp........................................ 30,450 936,337
-----------
2,464,021
GAS PRODUCTION AND DISTRIBUTION (0.08%)
Western Gas Resources, Inc..................................... 1,000 25,375
HOLDING AND OTHER INVESTMENTS (2.36%)
Security Capital Industrial Trust, Convertible................. 29,000 797,500
INSTRUMENTS AND RELATED PRODUCTS (2.00%)
US Surgical Corp., Convertible................................. 17,200 675,100
PETROLEUM AND COAL PRODUCTS (3.61%)
Ashland Oil Co................................................. 18,000 1,219,500
WATER TRANSPORTATION (4.70%)
Sea-Containers, Ltd., Convertible.............................. 33,000 1,588,125
WHOLESALE TRADE -- DURABLE GOODS (3.20%)
Kaman Corp., Convertible....................................... 20,000 1,080,000
</TABLE>
23
<PAGE>
FBL SERIES FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
MANAGED PORTFOLIO
<TABLE>
<CAPTION>
SHARES
HELD VALUE
---------- -----------
<S> <C> <C>
WHOLESALE TRADE -- NONDURABLE GOODS (3.06%)
Howell Corp.................................................... 19,800 $ 1,034,550
-----------
Total Preferred Stocks........................................... 8,884,171
<CAPTION>
PRINCIPAL
AMOUNT
----------
<S> <C> <C>
CORPORATE BONDS (11.45%)
COMMUNICATIONS (0.32%)
Hawaiian Telephone Co., 8.00%, due 9/01/01..................... $ 105,000 107,400
ELECTRIC, GAS AND SANITARY SERVICES (0.44%)
National Co-op Services Corp. (Arkansas Electric), 9.48%, due
1/01/12...................................................... 140,000 148,312
ELECTRONIC AND OTHER ELECTRIC EQUIPMENT (3.75%)
California Microwave, Inc., Convertible Sub. Deb., 5.25%, due
12/15/03..................................................... 1,500,000 1,267,500
FOOD AND KINDRED PRODUCTS (0.24%)
Anheuser-Busch Companies, Inc., 8.50%, due 3/01/17............. 77,000 80,197
INSURANCE CARRIERS (0.75%)
Torchmark Corp., 8.625%, due 3/01/17........................... 250,000 254,070
METAL MINING (4.92%)
Agnico-Eagle Mines, Ltd., Convertible Sub. Deb., 3.50%, due
1/27/04...................................................... 1,900,000 1,662,500
PETROLEUM AND COAL PRODUCTS (0.41%)
Pennzoil Co., 9.00%, due 4/01/17............................... 133,000 139,980
RAILROAD TRANSPORTATION (0.62%)
Union Pacific Corp., Sinking Fund Deb., 8.50%, due 1/15/17..... 200,000 209,570
-----------
Total Corporate Bonds............................................ 3,869,529
SHORT-TERM INVESTMENTS (39.60%)
COMMERCIAL PAPER (20.50%)
American General Finance Corp., 5.38%, due 3/05/97............. 600,000 600,000
Deere (John) Capital Corp., 5.37%, due 4/10/97................. 1,550,000 1,550,000
Ford Motor Credit Corp., 5.34%, due 3/12/97.................... 1,000,000 1,000,000
General Electric Capital Corp., 5.47%, due 2/21/97............. 1,275,000 1,275,000
IBM Credit Corp., 5.33%, due 3/05/97........................... 1,000,000 1,000,000
Norwest Financial,Inc., 5.36%, due 3/26/97..................... 1,500,000 1,500,000
-----------
6,925,000
</TABLE>
24
<PAGE>
FBL SERIES FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
MANAGED PORTFOLIO
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- -----------
<S> <C> <C>
UNITED STATES GOVERNMENT AGENCIES (19.10%)
Federal Home Loan Mortgage Corp., due 2/26/97.................. $ 975,000 $ 971,324
Federal National Mortgage Assoc., due 2/03/97.................. 1,700,000 1,699,496
Federal National Mortgage Assoc., due 2/18/97.................. 1,850,000 1,845,305
Federal National Mortgage Assoc., due 2/24/97.................. 300,000 298,967
Federal National Mortgage Assoc., due 3/20/97.................. 1,000,000 993,186
Federal National Mortgage Assoc., due 4/16/97.................. 650,000 642,998
-----------
6,451,276
-----------
Total Short-Term Investments..................................... 13,376,276
-----------
Total Investments (99.74%)....................................... 33,694,742
OTHER ASSETS LESS LIABILITIES (0.26%)
Cash and receivables,less liabilities.......................... 89,390
-----------
Total Net Assets (100.00%)....................................... $33,784,132
-----------
-----------
</TABLE>
SEE ACCOMPANYING NOTES.
25
<PAGE>
FBL SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
MONEY MARKET PORTFOLIO
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
ANNUALIZED
YIELD ON PRINCIPAL
PURCHASE DATE AMOUNT VALUE
------------- ----------- ----------
<S> <C> <C> <C>
SHORT-TERM INVESTMENTS (99.35%)
COMMERCIAL PAPER (26.08%)
NONDEPOSITORY INSTITUTIONS
American General Finance Corp., 5.45%, due
2/07/97........................................... 5.452% $ 125,000 $ 125,000
Deere (John) Capital Corp., 5.44%, due 2/14/97...... 5.437 100,000 100,000
Ford Motor Credit Corp., 5.39%, due 3/21/97......... 5.389 125,000 125,000
General Electric Capital Corp., 5.41%, due
3/18/97........................................... 5.409 125,000 125,000
IBM Credit Corp., 5.37%, due 4/15/97................ 5.371 125,000 125,000
Norwest Financial, Inc., 5.47%, due 2/11/97......... 5.465 125,000 125,000
----------
Total Commercial Paper................................ 725,000
UNITED STATES GOVERNMENT AGENCIES (73.27%)
Federal Farm Credit Bank, due 2/28/97............... 5.441 250,000 248,998
Federal Home Loan Mortgage Corp., due 2/24/97....... 5.468 375,000 373,712
Federal Home Loan Mortgage Corp., due 3/04/97....... 5.458 125,000 124,423
Federal Home Loan Mortgage Corp., due 3/28/97....... 5.349 150,000 148,801
Federal Home Loan Mortgage Corp., due 4/04/97....... 5.350 275,000 272,524
Federal National Mortgage Assoc., due 2/03/97....... 5.412 125,000 124,963
Federal National Mortgage Assoc., due 3/10/97....... 5.481 100,000 99,447
Federal National Mortgage Assoc., due 3/13/97....... 5.487 100,000 99,402
Federal National Mortgage Assoc., due 3/31/97....... 5.355 150,000 148,735
Federal National Mortgage Assoc., due 4/10/97....... 5.363 175,000 173,269
Federal National Mortgage Assoc., due 4/16/97....... 5.371 225,000 222,576
----------
Total United States Government Agencies............... 2,036,850
----------
Total Investments (99.35%).............................. 2,761,850
OTHER ASSETS LESS LIABILITIES (0.65%)
Cash and receivables, less liabilities................ 18,005
----------
Total Net Assets (100.00%).............................. $2,779,855
----------
----------
</TABLE>
SEE ACCOMPANYING NOTES.
26
<PAGE>
FBL SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
BLUE CHIP PORTFOLIO
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES HELD VALUE
----------- -----------
<S> <C> <C>
COMMON STOCKS (90.71%)
CHEMICALS AND ALLIED PRODUCTS (18.12%)
Bristol-Myers Squibb Co......................................... 3,590 $ 455,930
DuPont (EI) de Nemours & Co..................................... 4,595 503,727
Eastman Chemical Co............................................. 3,423 186,981
Johnson & Johnson............................................... 9,601 553,258
Merck & Co., Inc................................................ 6,186 561,380
Praxair, Inc.................................................... 10,341 479,564
Procter & Gamble Co............................................. 4,276 493,878
Union Carbide Corp.............................................. 9,283 421,216
-----------
3,655,934
COMMUNICATIONS (2.69%)
American Telephone & Telegraph Co............................... 5,577 219,594
Bell Atlantic Corp.............................................. 4,795 322,464
-----------
542,058
DEPOSITORY INSTITUTIONS (1.97%)
J. P. Morgan & Co., Inc......................................... 3,861 397,683
EATING AND DRINKING PLACES (2.09%)
McDonald's Corp................................................. 9,241 420,465
ELECTRONIC AND OTHER ELECTRIC EQUIPMENT (3.08%)
General Electric Co............................................. 4,951 509,953
Lucent Technologies, Inc........................................ 2,060 111,755
-----------
621,708
FOOD AND KINDRED PRODUCTS (8.12%)
Coca-Cola Co. (The)............................................. 12,404 717,882
PepsiCo, Inc.................................................... 13,140 458,257
Philip Morris Companies, Inc.................................... 3,886 461,948
-----------
1,638,087
GENERAL MERCHANDISE STORES (4.13%)
Sears, Roebuck & Co............................................. 6,189 297,072
Wal-Mart Stores, Inc............................................ 12,214 290,083
Woolworth (F.W.) Co. Ltd........................................ 12,076(1) 246,048
-----------
833,203
</TABLE>
27
<PAGE>
FBL SERIES FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
BLUE CHIP PORTFOLIO
<TABLE>
<CAPTION>
SHARES HELD VALUE
----------- -----------
INDUSTRIAL MACHINERY AND EQUIPMENT (4.57%)
<S> <C> <C>
Caterpillar, Inc................................................ 6,450 $ 500,681
International Business Machines Corp............................ 2,598 408,536
NCR Corp........................................................ 348 13,180
-----------
922,397
INSTRUMENTS AND RELATED PRODUCTS (2.09%)
Eastman Kodak Co................................................ 4,864 421,952
INSURANCE CARRIERS (4.77%)
Allstate Corp................................................... 5,952 391,344
American International Group, Inc............................... 4,711 570,620
-----------
961,964
MOTION PICTURES (2.17%)
Disney (Walt) Co................................................ 5,966 437,010
NONDEPOSITORY INSTITUTIONS (1.61%)
Dean Witter, Discover & Co...................................... 8,504 324,215
PAPER AND ALLIED PRODUCTS (3.54%)
International Paper Co.......................................... 7,672 313,593
Minnesota Mining & Manufacturing Co............................. 4,707 401,272
-----------
714,865
PETROLEUM AND COAL PRODUCTS (11.15%)
Amoco Corp...................................................... 4,216 366,792
Chevron Corp.................................................... 5,616 372,762
Exxon Corp...................................................... 4,005 415,018
Mobil Corp...................................................... 3,071 403,069
Texaco, Inc..................................................... 3,682 389,832
USX Corp. -- Marathon Group..................................... 11,350 302,194
-----------
2,249,667
PRIMARY METAL INDUSTRIES (2.81%)
Aluminum Company of America..................................... 5,992 413,448
Bethlehem Steel Corp............................................ 18,159(1) 154,351
-----------
567,799
RUBBER AND MISCELLANEOUS PLASTICS PRODUCTS (2.64%)
Goodyear Tire & Rubber Co....................................... 9,752 531,484
</TABLE>
28
<PAGE>
FBL SERIES FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
BLUE CHIP PORTFOLIO
<TABLE>
<CAPTION>
SHARES HELD VALUE
----------- -----------
SECURITY AND COMMODITY BROKERS (3.31%)
<S> <C> <C>
American Express Co............................................. 7,233 $ 451,158
Lehman Brothers Holding, Inc.................................... 6,854 216,758
-----------
667,916
TRANSPORTATION EQUIPMENT (10.66%)
Allied-Signal, Inc.............................................. 8,537 599,724
Boeing Co. (The)................................................ 4,190 448,854
Ford Motor Co................................................... 9,682 311,034
General Motors Corp............................................. 5,193 306,387
United Technologies Corp........................................ 6,944 484,344
-----------
2,150,343
WHOLESALE TRADE -- DURABLE GOODS (1.19%)
Westinghouse Electric Corp...................................... 13,099 240,694
-----------
Total Common Stocks............................................... 18,299,444
<CAPTION>
PRINCIPAL
AMOUNT
-----------
<S> <C> <C>
SHORT-TERM INVESTMENTS (8.76%)
UNITED STATES GOVERNMENT AGENCIES
Federal Home Loan Bank, due 3/20/97............................. $ 175,000 173,805
Federal Home Loan Mortgage Corp., due 2/18/97................... 175,000 174,571
Federal National Mortgage Assoc., due 2/18/97................... 250,000 249,370
Federal National Mortgage Assoc., due 2/19/97................... 900,000 897,650
Federal National Mortgage Assoc., due 4/07/97................... 275,000 272,394
-----------
Total Short-Term Investments...................................... 1,767,790
-----------
Total Investments (99.47%)........................................ 20,067,234
OTHER ASSETS LESS LIABILITIES (0.53%)
Cash and receivables, less liabilities.......................... 107,329
-----------
Total Net Assets (100.00%)........................................ $20,174,563
-----------
-----------
</TABLE>
(1) Non-income producing security.
SEE ACCOMPANYING NOTES.
29
<PAGE>
FBL SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 1997
(UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
FBL Series Fund, Inc. (the "Fund") is registered under the Investment
Company Act of 1940, as amended, as an open-end, diversified management
investment company and operates in the mutual fund industry. Effective December
1, 1996, the Growth Common Stock Portfolio was renamed the Value Growth
Portfolio. The Fund currently consists of six portfolios (known as the Value
Growth, High Grade Bond, High Yield Bond, Managed, Money Market and Blue Chip
Portfolios).
All portfolios, other than the Money Market Portfolio, value their common
stocks, corporate bonds, United States Treasury obligations and mortgage-backed
securities that are traded on any national exchange at the last sale price on
the day of valuation or, lacking any sales, at the mean between the closing bid
and asked prices. Investments traded in the over-the-counter market are valued
at the mean between the bid and asked prices or yield equivalent as obtained
from one or more dealers that make markets in the securities. Investments for
which market quotations are not readily available are valued at fair value as
determined in good faith by the Board of Directors. Short-term investments
(including repurchase agreements) are valued at market value, except that
obligations maturing in 60 days or less are valued using the amortized cost
method of valuation described below with respect to the Money Market Portfolio,
which approximates market.
The Money Market Portfolio values investments at amortized cost, which
approximates market. Under the amortized cost method, a security is valued at
its cost on the date of purchase and thereafter is adjusted to reflect a
constant amortization to maturity of the difference between the principal amount
due at maturity and the cost of the investment to the portfolio.
The value of the underlying securities serving to collateralize repurchase
agreements is marked to market daily. Should the value of the underlying
securities decline, the seller would be required to provide the applicable
portfolio with additional securities so that the aggregate value of the
underlying securities was at least equal to the repurchase price. If a seller of
a repurchase agreement were to default, the affected portfolio might experience
losses in enforcing its rights. To minimize this risk, the investment adviser
(under the supervision of the Board of Directors) will monitor the
creditworthiness of the seller of the repurchase agreement and must find such
creditworthiness satisfactory before a portfolio may enter into the repurchase
agreement.
The Fund records investment transactions generally one day after the trade
date. The identified cost basis has been used in determining the net realized
gain or loss from investment transactions and unrealized appreciation or
depreciation on investments. Dividends are taken into income on an accrual basis
as of the ex-dividend date and interest is recognized on an accrual basis.
Discounts and premiums on investments purchased are amortized over the life of
the respective investments.
Dividends and distributions to shareholders are recorded on the record date.
30
<PAGE>
FBL SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
2. FEDERAL INCOME TAXES
No provision for federal income taxes is considered necessary because the
Fund is qualified as a "regulated investment company" under the Internal Revenue
Code and intends to distribute each year substantially all of its net investment
income and realized capital gains to shareholders. The cost of investments is
the same for both federal income tax and financial reporting purposes.
At July 31, 1996, the High Grade Bond Portfolio had a net capital loss
carryforward of approximately $31,000, which will expire from 2002 through 2003.
3. MANAGEMENT CONTRACT AND TRANSACTIONS WITH AFFILIATES
The Fund has entered into agreements with FBL Investment Advisory Services,
Inc. ("FBL Investment") relating to the management of the portfolios and the
investment of their assets. Pursuant to these agreements, fees paid to FBL
Investment are as follows: (1) annual investment advisory and management fees,
which are based on each portfolio's daily net assets as follows: Value Growth
Portfolio - 0.50%; High Grade Bond Portfolio - 0.40%; High Yield Bond Portfolio
- -0.55%; Managed Portfolio - 0.60%; Money Market Portfolio - 0.25% and Blue Chip
Portfolio - 0.25%; (2) distribution fees, which are computed at an annual rate
of 0.50% of each portfolio's average daily net asset value and, in part, are
subsequently remitted by FBL Investment to retail dealers including FBL
Marketing Services, Inc. ("FBL Marketing"), an affiliate who serves as principal
dealer; (3) administrative service fees, which are computed at an annual rate of
0.25% of each portfolio's average daily net asset value; (4) shareholder
service, transfer and dividend disbursing agent fees, which are based on direct
services provided and expenses incurred by the investment adviser, plus an
annual per account charge ranging from $7.00 to $9.00, with an annual minimum
account maintenance fee of $12,000 per portfolio; and (5) accounting fees, which
are based on each portfolio's daily net assets at an annual rate of 0.05%, with
a maximum per portfolio annual expense of $30,000.
FBL Investment has agreed to reimburse the portfolios annually for total
expenses (excluding brokerage, interest, taxes, the distribution fee and
extraordinary expenses) in excess of 1.50% of each portfolio's average daily net
assets. The amount reimbursed, however, shall not exceed the amount of the
investment advisory and management fees paid by the portfolio for such period.
During the year ended July 31, 1996, FBL Investment voluntarily reimbursed
the Managed Portfolio for losses relating to the sale of a restricted security
in the amount of $44,982. The transaction was recorded as a realized capital
loss and an offsetting capital contribution from an affiliate.
Certain officers and directors of the Fund are also officers of Farm Bureau
Life Insurance Company, FBL Investment, FBL Marketing and other affiliated
entities. At January 31, 1997, Farm Bureau Life Insurance Company, the indirect
parent of FBL Investment and FBL Marketing, owned shares of the Fund's
portfolios as follows:
<TABLE>
<CAPTION>
PORTFOLIO SHARES
- --------------------------------------------------------- ---------
<S> <C>
High Yield Bond.......................................... 75,129
Money Market............................................. 1,910,602
</TABLE>
FBL Investment also owned shares of the Value Growth Portfolio aggregating
79,160 at January 31, 1997.
31
<PAGE>
FBL SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. CAPITAL SHARE TRANSACTIONS
Net assets as of January 31, 1997 consisted of:
<TABLE>
<CAPTION>
PORTFOLIO
---------------------------------------------------------------------------
HIGH GRADE HIGH MONEY BLUE
VALUE GROWTH BOND YIELD BOND MANAGED MARKET CHIP
------------- ---------- ---------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
Capital Stock (5,000,000,000 shares of
$.001 par value Capital Stock
authorized).............................. $ 6,869 $ 940 $ 811 $ 2,529 $ 2,780 $ 651
Additional paid-in capital................. 87,827,197 9,459,138 8,151,918 30,803,804 2,777,075 12,416,059
Accumulated undistributed net investment
income................................... 45,056 73,435 (8,558)
Accumulated undistributed net realized gain
(loss) from investment transactions...... 4,769,194 (25,996) 35,166 726,145 1,295
Net unrealized appreciation of
investments.............................. 10,917,705 219,136 21,535 2,178,219 7,765,116
------------- ---------- ---------- ----------- ---------- -----------
Net Assets................................. $ 103,566,021 $9,653,218 $8,209,430 $33,784,132 $2,779,855 $20,174,563
------------- ---------- ---------- ----------- ---------- -----------
------------- ---------- ---------- ----------- ---------- -----------
</TABLE>
Transactions in Capital Stock for each portfolio were as follows:
<TABLE>
<CAPTION>
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS AND NET INCREASE
SHARES SOLD DISTRIBUTIONS SHARES REDEEMED (DECREASE)
--------------------- ---------------------- --------------------- ----------------------
PORTFOLIO SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- ---------------------------------- --------- ---------- --------- ----------- --------- ---------- --------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Six Months Ended January 31, 1997:
Value Growth...................... 324,737 $5,020,036 844,969 $12,429,493 194,895 $3,040,974 974,811 $14,408,555
High Grade Bond................... 77,006 789,033 20,055 205,798 54,830 563,208 42,231 431,623
High Yield Bond................... 82,711 837,727 26,414 268,351 33,772 343,545 75,353 762,533
Managed........................... 311,456 4,272,729 219,545 2,921,724 63,582 879,954 467,419 6,314,499
Money Market...................... 634,469 634,469 12,607 12,607 418,775 418,775 228,301 228,301
Blue Chip......................... 103,556 2,975,665 9,088 269,828 19,409 563,444 93,235 2,682,049
Year Ended July 31, 1996:
Value Growth...................... 676,503 $9,680,344 272,420 $ 3,830,226 496,485 $7,075,876 452,438 $ 6,434,694
High Grade Bond................... 145,140 1,486,070 40,458 415,105 101,202 1,037,316 84,396 863,859
High Yield Bond................... 158,195 1,581,316 36,061 360,220 125,359 1,252,932 68,897 688,604
Managed........................... 388,866 5,132,422 72,358 945,921 180,489 2,377,441 280,735 3,700,902
Money Market...................... 524,983 524,983 20,508 20,508 432,787 432,787 112,704 112,704
Blue Chip......................... 176,665 4,548,977 3,471 85,480 45,260 1,152,502 134,876 3,481,955
</TABLE>
32
<PAGE>
FBL SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
5. INVESTMENT TRANSACTIONS
For the six months ended January 31, 1997, the cost of investment securities
purchased and proceeds from investment securities sold (not including short-term
investments and U.S. Government securities) by portfolio, were as follows:
<TABLE>
<CAPTION>
PORTFOLIO PURCHASES SALES
- ------------------------------------------------- ----------- -----------
<S> <C> <C>
Value Growth..................................... $26,463,423 $33,655,497
High Grade Bond.................................. 1,276,377 1,282,736
High Yield Bond.................................. 1,792,757 1,833,798
Managed.......................................... 4,711,172 8,351,310
Blue Chip........................................ 2,161,893 70,421
</TABLE>
At January 31, 1997, net unrealized appreciation of investments by portfolio
was composed of the following:
<TABLE>
<CAPTION>
NET UNREALIZED
GROSS UNREALIZED APPRECIATION
---------------------------- (DEPRECIATION)
PORTFOLIO APPRECIATION DEPRECIATION OF INVESTMENTS
- ---------------------------------------------- ------------- ------------- ---------------
<S> <C> <C> <C>
Value Growth.................................. $12,279,807 $ 1,362,102 $ 10,917,705
High Grade Bond............................... 258,558 39,422 219,136
High Yield Bond............................... 267,875 246,340 21,535
Managed....................................... 2,377,759 199,540 2,178,219
Blue Chip..................................... 7,870,219 105,103 7,765,116
</TABLE>
6. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income for the following portfolios are
declared daily and were payable on the last business day of the month as
follows:
<TABLE>
<CAPTION>
HIGH HIGH
GRADE YIELD MONEY
PAYABLE DATE BOND BOND MARKET
- ------------------------------------------------------------------ --------- --------- -----------
<S> <C> <C> <C>
August 30, 1996................................................... $ .0491 $ .0607 $ .0028
September 30, 1996................................................ .0528 .0621 .0028
October 31, 1996.................................................. .0505 .0585 .0029
November 27, 1996................................................. .0463 .0542 .0025
December 31, 1996................................................. .0555 .0659 .0031
January 31, 1997.................................................. .0471 .0589 .0029
--------- --------- -----------
Total Dividends Per Share......................................... $ .3013 $ .3603 $ .0170
--------- --------- -----------
--------- --------- -----------
</TABLE>
33
<PAGE>
FBL SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
6. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS (CONTINUED)
In addition, dividends and distributions to shareholders from net investment
income and net realized gain on investment transactions were paid during the six
months ended January 31, 1997, for the following portfolios:
ORDINARY INCOME DIVIDENDS:
<TABLE>
<CAPTION>
DIVIDEND PERCENT
AMOUNT QUALIFYING FOR
DECLARATION RECORD PAYABLE PER DEDUCTION BY
PORTFOLIO DATE DATE DATE SHARE CORPORATIONS
- -------------------------------- ----------- --------- --------- ----------- -------------------
<S> <C> <C> <C> <C> <C>
Value Growth.................... 12/23/96 12/30/96 12/30/96 $ 0.1825 76%
Managed......................... 10/30/96 10/31/96 11/07/96 0.1075 56
Managed......................... 12/23/96 12/30/96 12/30/96 0.0900 50
Blue Chip....................... 12/23/96 12/30/96 12/30/96 0.1450 82
</TABLE>
CAPITAL GAINS DISTRIBUTIONS:
<TABLE>
<CAPTION>
DIVIDEND
AMOUNT
DECLARATION RECORD PAYABLE PER
PORTFOLIO DATE DATE DATE SHARE
- -------------------------------- ----------- --------- --------- -----------
<S> <C> <C> <C> <C> <C>
Value Growth.................... 12/23/96 12/30/96 12/30/96 $ 1.9400
High Yield Bond................. 12/23/96 12/30/96 12/30/96 0.1160
Managed......................... 12/23/96 12/30/96 12/30/96 1.2125
Blue Chip....................... 12/23/96 12/30/96 12/30/96 0.2975
</TABLE>
The capital gains distributions related to the Value Growth, High Yield Bond
and Managed Portfolios include net short-term realized gains of $9,628,726
($1.6125 per share), $26,816 ($0.0340 per share) and $1,408,593 ($0.6300 per
share), respectively, that are taxable to shareholders as ordinary income
dividends.
34
<PAGE>
FBL SERIES FUND, INC.
FINANCIAL HIGHLIGHTS
PERIOD ENDED JANUARY 31, 1997 (UNAUDITED) AND
YEARS ENDED JULY 31, 1996, 1995, 1994, 1993 AND 1992
<TABLE>
<CAPTION>
VALUE GROWTH
PORTFOLIO
------------------------------------------------------------------
1997 1996 1995 1994 1993 1992
----------- ------- ------- ------- ------- ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.............. $14.68 $13.04 $13.07 $15.13 $12.48 $11.64
Income From Investment Operations
Net investment income......................... 0.11 0.27 0.43 0.60 0.51 0.48
Net gains or losses on investments (both
realized and unrealized).................... 2.41 2.10 0.65 (0.49) 2.75 0.93
----------- ------- ------- ------- ------- ------
Total from investment operations................ 2.52 2.37 1.08 0.11 3.26 1.41
----------- ------- ------- ------- ------- ------
Less Distributions
Dividends (from net investment income)........ (0.18) (0.46) (0.39) (0.60) (0.48) (0.57)
Distributions (from capital gains)............ (1.94) (0.27) (0.72) (1.57) (0.13)
Distributions in excess of net realized
gains.......................................
----------- ------- ------- ------- ------- ------
Total distributions............................. (2.12) (0.73) (1.11) (2.17) (0.61) (0.57)
----------- ------- ------- ------- ------- ------
Capital contribution from affiliate (see NOTE
3)............................................
----------- ------- ------- ------- ------- ------
Net asset value, end of period.................... $15.08 $14.68 $13.04 $13.07 $15.13 $12.48
----------- ------- ------- ------- ------- ------
----------- ------- ------- ------- ------- ------
Total Return:
Total investment return based on net asset value
(1)........................................... 38.17%(4) 18.41% 9.36% 0.34% 27.25% 12.51%
Ratios/Supplemental Data:
Net assets, end of period (000's omitted)....... $ 103,566 $86,534 $70,947 $64,315 $51,732 $39,418
Ratio of net expenses to average net assets..... 1.66%(4) 1.62% 1.62% 1.60% 1.61% 1.69%
Ratio of net income to average net assets....... 1.34%(4) 1.87% 3.43% 4.05% 3.80% 3.99%
Portfolio turnover rate......................... %(304) 92% 85% 93% 92% 87%
Average commission rate per share (3)........... $0.0522(4) $0.0529
Information assuming no voluntary reimbursement by
FBL Investment of excess operating expenses (see
NOTE 3):
Per share net investment income.................
Ratio of expenses to average net assets.........
Amount reimbursed...............................
</TABLE>
- ------------------------------
Note: Per share amounts have been calculated on the basis of monthly per share
amounts (using average monthly outstanding shares) accumulated for the
period.
(1) Total investment return is calculated assuming an initial investment made
at the net asset value at the beginning of the period, reinvestment of all
dividends and distributions at net asset value during the period, and
redemption on the last day of the period. Contingent deferred sales charge
is not reflected in the calculation of total investment return.
(2) The total investment return includes the effect of the capital contribution
of $0.02 per share. The return without the capital contribution would have
been 17.13%.
(3) Average commission rate per share disclosure is not required for fiscal
years prior to July 31, 1996.
(4) Computed on an annualized basis.
SEE ACCOMPANYING NOTES.
36
<PAGE>
<TABLE>
<CAPTION>
HIGH
GRADE BOND
PORTFOLIO
------------------------------------------------------------
1997 1996 1995 1994 1993 1992
---------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period..... $10.16 $10.26 $10.13 $10.69 $10.68 $10.15
Income From Investment
Operations
Net investment
income............. 0.30 0.64 0.63 0.64 0.70 0.73
Net gains or losses
on investments
(both realized and
unrealized)........ 0.11 (0.10) 0.16 (0.40) 0.13 0.62
---------- ------- ------- ------- ------- -------
Total from investment
operations........... 0.41 0.54 0.79 0.24 0.83 1.35
---------- ------- ------- ------- ------- -------
Less Distributions
Dividends (from net
investment
income)............ (0.30) (0.64) (0.63) (0.64) (0.70) (0.73)
Distributions (from
capital gains)..... (0.16) (0.12) (0.09)
Distributions in
excess of net
realized gains..... (0.03)
---------- ------- ------- ------- ------- -------
Total distributions.... (0.30) (0.64) (0.66) (0.80) (0.82) (0.82)
---------- ------- ------- ------- ------- -------
Capital contribution
from affiliate (see
NOTE 3)..............
---------- ------- ------- ------- ------- -------
Net asset value, end of
period.................. $10.27 $10.16 $10.26 $10.13 $10.69 $10.68
---------- ------- ------- ------- ------- -------
---------- ------- ------- ------- ------- -------
Total Return:
Total investment return
based on net asset
value (1)............ 8.34%(4) 5.37% 8.23% 1.77% 8.10% 13.71%
Ratios/Supplemental Data:
Net assets, end of
period (000's
omitted)............. $ 9,653 $ 9,122 $ 8,345 $ 7,596 $ 8,047 $ 7,676
Ratio of net expenses
to average net
assets............... 1.84%(4) 1.85% 1.99% 1.90% 1.79% 1.88%
Ratio of net income to
average net assets... 5.83%(4) 6.19% 6.29% 6.12% 6.59% 6.94%
Portfolio turnover
rate................. %(154) 34% 18% 42% 54% 45%
Average commission rate
per share (3)........
Information assuming no
voluntary reimbursement
by FBL Investment of
excess operating
expenses (see NOTE 3):
Per share net
investment income....
Ratio of expenses to
average net assets...
Amount reimbursed......
<CAPTION>
HIGH
YIELD BOND
PORTFOLIO
--------------------------------------------------------------
1997 1996 1995 1994 1993 1992
---------- -------- -------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period..... $9.99 $10.03 $10.00 $10.76 $10.47 $9.82
Income From Investment
Operations
Net investment
income............. 0.36 0.75 0.78 0.81 0.83 0.90
Net gains or losses
on investments
(both realized and
unrealized)........ 0.25 (0.01) 0.13 (0.60) 0.46 0.65
---------- -------- -------- ------- ------- -------
Total from investment
operations........... 0.61 0.74 0.91 0.21 1.29 1.55
---------- -------- -------- ------- ------- -------
Less Distributions
Dividends (from net
investment
income)............ (0.36) (0.75) (0.78) (0.81) (0.83) (0.90)
Distributions (from
capital gains)..... (0.12) (0.03) (0.09) (0.16) (0.17)
Distributions in
excess of net
realized gains..... (0.01)
---------- -------- -------- ------- ------- -------
Total distributions.... (0.48) (0.78) (0.88) (0.97) (1.00) (0.90)
---------- -------- -------- ------- ------- -------
Capital contribution
from affiliate (see
NOTE 3)..............
---------- -------- -------- ------- ------- -------
Net asset value, end of
period.................. $10.12 $9.99 $10.03 $10.00 $10.76 $10.47
---------- -------- -------- ------- ------- -------
---------- -------- -------- ------- ------- -------
Total Return:
Total investment return
based on net asset
value (1)............ 11.93%(4) 7.67% 9.71% 1.88% 12.95% 16.44%
Ratios/Supplemental Data:
Net assets, end of
period (000's
omitted)............. $ 8,209 $ 7,349 $ 6,691 $ 6,425 $ 5,758 $ 4,835
Ratio of net expenses
to average net
assets............... 2.00%(4) 2.00% 2.00% 2.00% 2.00% 1.98%
Ratio of net income to
average net assets... 7.05%(4) 7.44% 7.83% 7.68% 7.84% 8.79%
Portfolio turnover
rate................. %(254) 30% 23% 26% 56% 56%
Average commission rate
per share (3)........
Information assuming no
voluntary reimbursement
by FBL Investment of
excess operating
expenses (see NOTE 3):
Per share net
investment income.... $0.36 $0.73 $0.75 $0.79 $0.82
Ratio of expenses to
average net assets... 2.09% 2.22% 2.29% 2.17% 2.05%
Amount reimbursed...... $3,258 $15,361 $18,810 $10,754 $3,147
</TABLE>
37
<PAGE>
FBL SERIES FUND, INC.
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
MANAGED
PORTFOLIO
------------------------------------------------------------------
1997 1996 1995 1994 1993 1992
----------- ------- ------- ------- ------- ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.............. $13.33 $11.85 $11.62 $12.51 $ 10.77 $ 9.95
Income From Investment Operations
Net investment income......................... 0.23 0.46 0.56 0.55 0.54 0.61
Net gains or losses on investments (both
realized and unrealized).................... 1.21 1.54 0.47 (0.62) 1.87 0.82
----------- ------- ------- ------- ------- ------
Total from investment operations................ 1.44 2.00 1.03 (0.07) 2.41 1.43
----------- ------- ------- ------- ------- ------
Less Distributions
Dividends (from net investment income)........ (0.20) (0.45) (0.56) (0.50) (0.52) (0.61)
Distributions (from capital gains)............ (1.21) (0.10) (0.14) (0.32) (0.15)
Distributions in excess of net realized
gains....................................... (0.10)
----------- ------- ------- ------- ------- ------
Total distributions............................. (1.41) (0.55) (0.80) (0.82) (0.67) (0.61)
----------- ------- ------- ------- ------- ------
Capital contribution from affiliate (see NOTE
3)............................................ 0.03
----------- ------- ------- ------- ------- ------
Net asset value, end of period.................... $13.36 $13.33 $11.85 $11.62 $ 12.51 $10.77
----------- ------- ------- ------- ------- ------
----------- ------- ------- ------- ------- ------
Total Return:
Total investment return based on net asset
value (1)..................................... 23.03%(4) 17.30%(2) 9.40% (0.61%) 23.02% 14.79%
Ratios/Supplemental Data:
Net assets, end of period (000's omitted)....... $ 33,784 $27,470 $21,105 $19,100 $ 8,257 $3,887
Ratio of net expenses to average net assets..... 1.93%(4) 1.91% 1.94% 1.96% 1.96% 2.07%
Ratio of net income to average net assets....... 3.30%(4) 3.47% 4.86% 4.42% 4.54% 5.93%
Portfolio turnover rate......................... %(234) 81% 69% 29% 52% 77%
Average commission rate per share (3)........... $0.0546(4) $0.0549
Information assuming no voluntary reimbursement by
FBL Investment of excess operating expenses (see
NOTE 3):
Per share net investment income................. $ 0.53
Ratio of expenses to average net assets......... 2.02%
Amount reimbursed............................... $ 3,497
</TABLE>
38
<PAGE>
<TABLE>
<CAPTION>
MONEY MARKET
PORTFOLIO
-------------------------------------------------------------
1997 1996 1995 1994 1993 1992
---------- -------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period..... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income From Investment
Operations
Net investment
income............. 0.02 0.04 0.04 0.02 0.01 0.03
Net gains or losses
on investments
(both realized and
unrealized)........
---------- -------- ------- ------- ------- -------
Total from investment
operations........... 0.02 0.04 0.04 0.02 0.01 0.03
---------- -------- ------- ------- ------- -------
Less Distributions
Dividends (from net
investment
income)............ (0.02) (0.04) (0.04) (0.02) (0.01) (0.03)
Distributions (from
capital gains).....
Distributions in
excess of net
realized gains.....
---------- -------- ------- ------- ------- -------
Total distributions.... (0.02) (0.04) (0.04) (0.02) (0.01) (0.03)
---------- -------- ------- ------- ------- -------
Capital contribution
from affiliate (see
NOTE 3)..............
---------- -------- ------- ------- ------- -------
Net asset value, end of
period.................. $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- -------- ------- ------- ------- -------
---------- -------- ------- ------- ------- -------
Total Return:
Total investment return
based on net asset
value (1)............ 3.46%(4) 3.64% 3.60% 1.47% 1.33% 2.82%
Ratios/Supplemental Data:
Net assets, end of
period (000's
omitted)............. $ 2,780 $2,552 $ 2,439 $ 2,627 $ 2,555 $ 2,861
Ratio of net expenses
to average net
assets............... 2.00%(4) 2.00% 2.00% 1.93% 1.94% 2.00%
Ratio of net income to
average net assets... 3.40%(4) 3.58% 3.51% 1.45% 1.33% 2.83%
Portfolio turnover
rate................. %(40) 0% 0% 0% 0% 0%
Average commission rate
per share (3)........
Information assuming no
voluntary reimbursement
by FBL Investment of
excess operating
expenses (see NOTE 3):
Per share net
investment income.... $ 0.02 $ 0.03 $ 0.03
Ratio of expenses to
average net assets... 2.31% 2.43% 2.20%
Amount reimbursed...... $ 4,020 $ 10,718 $ 4,948
<CAPTION>
BLUE CHIP
PORTFOLIO
--------------------------------------------------------------
1997 1996 1995 1994 1993 1992
----------- -------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period..... $26.26 $22.85 $ 18.75 $ 17.69 $ 16.78 $ 15.38
Income From Investment
Operations
Net investment
income............. 0.08 0.17 0.19 0.14 0.13 0.17
Net gains or losses
on investments
(both realized and
unrealized)........ 5.10 3.43 4.05 1.06 0.90 1.47
----------- -------- ------- ------- ------- -------
Total from investment
operations........... 5.18 3.60 4.24 1.20 1.03 1.64
----------- -------- ------- ------- ------- -------
Less Distributions
Dividends (from net
investment
income)............ (0.14) (0.19) (0.14) (0.14) (0.12) (0.24)
Distributions (from
capital gains)..... (0.30)
Distributions in
excess of net
realized gains.....
----------- -------- ------- ------- ------- -------
Total distributions.... (0.44) (0.19) (0.14) (0.14) (0.12) (0.24)
----------- -------- ------- ------- ------- -------
Capital contribution
from affiliate (see
NOTE 3)..............
----------- -------- ------- ------- ------- -------
Net asset value, end of
period.................. $31.00 $26.26 $ 22.85 $ 18.75 $ 17.69 $ 16.78
----------- -------- ------- ------- ------- -------
----------- -------- ------- ------- ------- -------
Total Return:
Total investment return
based on net asset
value (1)............ 43.54%(4) 15.83% 22.77% 6.75% 6.21% 10.77%
Ratios/Supplemental Data:
Net assets, end of
period (000's
omitted)............. $ 20,175 $ 14,641 $ 9,657 $ 6,745 $ 5,415 $ 4,405
Ratio of net expenses
to average net
assets............... 1.72%(4) 1.79% 1.78% 1.83% 1.90% 1.92%
Ratio of net income to
average net assets... 0.54%(4) 0.66% 0.92% 0.75% 0.73% 1.09%
Portfolio turnover
rate................. %(40) 3% 1% 1% 0% 0%
Average commission rate
per share (3)........ $0.0616(4) $ 0.0748
Information assuming no
voluntary reimbursement
by FBL Investment of
excess operating
expenses (see NOTE 3):
Per share net
investment income....
Ratio of expenses to
average net assets...
Amount reimbursed......
</TABLE>
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