<PAGE>
----------------------------
[LOGO]
EquiTrust Series Fund, Inc.
SEMI-ANNUAL REPORT
JANUARY 31, 2000
INVESTMENT MANAGER AND
PRINCIPAL UNDERWRITER
EQUITRUST INVESTMENT
MANAGEMENT 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
distributed unless preceded or
accompanied
by a prospectus.
737-027(00)
<PAGE>
PRESIDENT'S LETTER
Dear Shareholder:
For the six-month period ended January 31, 2000, the Standard & Poor's 500
Stock Composite Index (S&P 500) was up 5.60% on a total return basis, and the
Dow Jones Industrial Average (DJIA) was up 3.47%. The NASDAQ Composite Index was
up a remarkable 49.5% during the same six-month period, while the Russell 2000
Small Cap Index rose 12.25%. The fixed income markets did not fare as well
during the period. High-grade corporate bonds returned 0.13% and long-term
Treasury bonds lost 0.39%.
The fixed income market sector performance was almost the exact opposite of
1998's performance. As the Asian financial crisis developed, a "flight to
quality" ensued and long-term U.S. Treasury bonds outperformed almost every
other fixed income security. In 1999, however, rising rates and a rebounding
global economy led to extreme underperformance by Treasury issues relative to
other fixed income sectors.
Higher oil prices, a recovering global economy, a weaker U.S. dollar, a
robust U.S. economy and a surging stock market combined to create an environment
of steadily rising interest rates during 1999. In response to continued economic
strength and declining unemployment, the Fed chose to reverse the three rate
cuts that took place during the 1998 Asian financial crisis. By year-end, fears
of further rate hikes appear to have been priced into the market as well.
Even though rates have been rising rapidly, other obvious signs of inflation
remain absent. During 1999, the consumer price index (CPI) rose 2.7%, an
acceleration from 1998 mainly due to rising energy prices. The producer price
index (PPI) rose a comparable 3.0% during the year. Commodity prices as measured
by the Commodities Research Bureau (CRB) Bridge Index are up only slightly for
the year and gold prices are also virtually unchanged on a year-over-year basis.
The Fed Chairman, Alan Greenspan, remains concerned that the overall pace of
economic growth and particularly the low level of unemployment may lead to
growing inflationary pressures. He has also expressed concern over some of the
dramatic equity market price gains and the effect they may have on the broader
economy. So far, his comments regarding stock prices have had little lasting
effect on investor behavior. Thus far, a hike in short-term interest rates has
meant little to tech stock investors looking for doubles or triples over a one
or two-year time horizon.
Rate hikes notwithstanding, the Fed has provided the market with a great
deal of liquidity over the past few years. The broad money supply (M3) is up
48.1% over the past five years, and over the past three months has been soaring
at a 13.4% annual rate. November saw the third largest percentage increase for
any month in over 40 years of data. At least a portion of the late 1999 surge
was intended to smooth any Y2K-related dislocations, but how does the Fed now
drain that excess liquidity without harsh economic effects?
Achieving a "soft landing" will likely prove no small task for the Fed, but
it may be possible. If growth in the most interest rate-sensitive sectors of our
economy begins to slow slightly, some breathing room may be restored without
severe dislocations. Certainly, the stock market-related stimulus to our economy
makes Fed Chairman Greenspan's task more difficult than ever.
2
<PAGE>
The following paragraphs describe how the various EquiTrust Series Fund
Portfolios are being positioned and where we see value that has developed as a
result of recent financial market activity.
VALUE GROWTH: The past six months will go down as one of the most sharply
divided periods in history. As value wobbled, technology surged. This divergence
reflects investors' continued preference for growth stocks, but only those with
perceived earnings momentum. Investors have been more than willing to bet on
unprofitable companies with rapid revenue growth rates; they show no mercy in
their treatment of those suffering earnings growth disappointments.
For the six-month period ended January 31, 2000, the total return for the
Value Growth Portfolio was -12.76%, compared to the 5.60% return for the
S&P 500. The wide difference was driven by two main factors: the huge disparity
in returns of large companies and small companies and the exceptional
performance of technology stocks which now comprise approximately 30% of the S&P
500.
Excluding the 29% gain in the S&P 500 technology sector, the index was
actually down 4.5% during the period rather than up 4.95% on a price basis.
Owing to extreme valuations and potential risk in this sector, the Portfolio
remains severely under-weighted in technology. An increase in the volatility of
the technology sector since the beginning of the year may indicate that gravity
will finally have an impact, making the heavy index weighting a liability rather
than an asset.
We believe that over time, our holdings in high quality companies with solid
earnings history will recover some of their lost favor and current valuations
will appear, in retrospect, to be bargain prices. We also believe that the
market has an increased tendency to move from extreme to extreme, and the
ultimate unwinding of the overvaluation in technology may lead to an overshoot,
creating tremendous values quite suddenly, allowing us to rebuild exposure in
this important sector.
HIGH GRADE BOND: Treasury yields ended higher over our six-month reporting
period with shorter maturity yields rising more than longer maturity yields. For
example, the 2-, 10- and 30-year Treasury issues yielded 5.62%, 5.90% and 6.10%,
respectively, as of July 30, 1999, and 6.59%, 6.67% and 6.49% as of January 31,
2000.
The bond market's selloff reflects the concern that continued strong
economic growth in the U.S., a rebound in world economies and the continued
growth in valuations in the technology sector of the U.S. stock market will
result in higher future inflation and interest rates. While future inflation may
be higher, the current core rate of inflation is running at a very low rate of
around 2%, which translates into relatively high real yields (interest rate
minus core inflation rate) of around 4.6% (6.6% minus 2%) on short-term Treasury
issues and 4.7% (6.7% minus 2%) on the ten-year Treasury issue. Given these
higher Treasury yields and our ability to find attractive spreads on corporate
issues, we have increased the duration of the Portfolio so that it currently
slightly exceeds that of the Lehman Brothers Aggregate Index. As a result, our
future returns will probably be more volatile then in the past.
HIGH YIELD BOND: During the past six months, the high yield bond market
slightly underperformed the high grade bond market. Although high yield issues
underperformed during the early part of the period, their performance improved
dramatically during the latter part of the period. According to the DLJ High
Yield Index, the average high yield spread was 553 basis points as of July 30,
1999 compared to 549 basis points as of January 27, 2000.
3
<PAGE>
At the present time, high yield spreads appear to be at fair value levels
given the higher level of defaults and the lower level of recovery on defaults.
Given this, we will probably look toward both the investment grade and
non-investment grade markets for future purchases.
MANAGED: The Managed Portfolio is an asset allocation portfolio utilizing
common stocks or securities convertible into common stocks, high-grade debt
securities and money market securities. The Portfolio seeks to produce a higher
level of current income than the broad equity indices with a higher level of
total return potential than most bond funds. The Portfolio is currently quite
heavily weighted towards convertible securities and preferred stocks. The
decline in the broader stock market (excluding technology stocks) has led to an
increased number of common stocks available at attractive dividend yields.
Accordingly, the Portfolio will likely be reallocated to place greater emphasis
on high yield common stocks with good long-term total return potential, with
less emphasis on convertible securities.
MONEY MARKET: As mentioned previously, the Federal Open Market Committee
(FOMC) raised the Fed Funds rate three times during the fall of 1999 to preempt
any inflation pressures from a strong labor market and consumer confidence.
Currently, the Federal Funds rate is 5.5% and additional increases are expected
to occur in the spring of 2000 due to the remaining tightening bias. We are
happy to report that Y2K came and went with barely a hiccup in the money
markets, which is comforting for the mutual fund industry. Portfolio maturities
were shorter than usual in order to remain liquid, which proved beneficial in a
rising interest rate environment. Going forward, we look for spreads to remain
stable, but yields to rise in relation to movements by the Fed.
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 remain
substantially invested in common stocks of large companies and 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.
/s/ Edward M. Wiederstein
EDWARD M. WIEDERSTEIN
PRESIDENT
February 25, 2000
4
<PAGE>
(This page has been left blank intentionally.)
5
<PAGE>
EQUITRUST SERIES FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
HIGH
VALUE GROWTH GRADE BOND
PORTFOLIO PORTFOLIO
------------ -----------
<S> <C> <C>
ASSETS
Investments in
securities, at value
(cost -- $84,361,615;
$14,269,222;
$13,631,948;
$37,006,510; $4,836,680;
and $43,891,883,
respectively)........... $72,817,628 $13,523,882
Cash..................... 13,886 31,209
Receivables:
Accrued dividends and
interest.............. 168,708 220,073
Investment securities
sold.................. 398,237 2,398
Prepaid expense and
other assets.......... 1,416 138
----------- -----------
Total Assets............. $73,399,875 $13,777,700
=========== ===========
LIABILITIES AND NET
ASSETS
Liabilities:
Portfolio securities
purchased............. $ 2,150,198
Payables:
EquiTrust Investment
Management Services,
Inc................. 52,509 $ 6,197
Dividends............ 62,401
Accrued expenses..... 16,620 2,493
----------- -----------
Total Liabilities...... 2,219,327 71,091
Net assets applicable
to outstanding capital
stock................. 71,180,548 13,706,609
----------- -----------
Total Liabilities and
Net Assets............ $73,399,875 $13,777,700
=========== ===========
NET ASSET VALUE PER
SHARE
Class A: Net Assets.... $66,287,942 $12,156,944
Shares issued and
outstanding....... 7,982,374 1,253,817
Net asset value per
share............. $ 8.30 $ 9.70
=========== ===========
Class I: Net Assets.... $ 4,892,606 $ 1,549,665
Shares issued and
outstanding....... 588,014 159,760
Net asset value per
share............. $ 8.32 $ 9.70
=========== ===========
</TABLE>
SEE ACCOMPANYING NOTES.
6
<PAGE>
<TABLE>
<CAPTION>
HIGH
YIELD BOND MANAGED MONEY MARKET BLUE CHIP
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ------------ -----------
<S> <C> <C> <C> <C>
ASSETS
Investments in
securities, at value
(cost -- $84,361,615;
$14,269,222;
$13,631,948;
$37,006,510; $4,836,680;
and $43,891,883,
respectively)........... $12,704,604 $32,568,371 $4,836,680 $66,582,695
Cash..................... 32,293 5,290 3,706 8,796
Receivables:
Accrued dividends and
interest.............. 220,690 146,220 2,178 48,475
Investment securities
sold.................. 2,996,393 7,839,555
Prepaid expense and
other assets.......... 134 551 971 459
----------- ----------- ---------- -----------
Total Assets............. $12,957,721 $35,716,825 $4,843,535 $74,479,980
=========== =========== ========== ===========
LIABILITIES AND NET
ASSETS
Liabilities:
Portfolio securities
purchased............. $ 7,884,855
Payables:
EquiTrust Investment
Management Services,
Inc................. $ 8,279 $ 27,455 $ 3,353 31,247
Dividends............ 71,254 16,405
Accrued expenses..... 1,926 6,949 1,840 9,345
----------- ----------- ---------- -----------
Total Liabilities...... 81,459 34,404 21,598 7,925,447
Net assets applicable
to outstanding capital
stock................. 12,876,262 35,682,421 4,821,937 66,554,533
----------- ----------- ---------- -----------
Total Liabilities and
Net Assets............ $12,957,721 $35,716,825 $4,843,535 $74,479,980
=========== =========== ========== ===========
NET ASSET VALUE PER
SHARE
Class A: Net Assets.... $11,261,448 $32,838,278 $4,067,838 $60,327,354
Shares issued and
outstanding....... 1,195,191 3,326,615 4,067,838 1,278,795
Net asset value per
share............. $ 9.42 $ 9.87 $ 1.00 $ 47.18
=========== =========== ========== ===========
Class I: Net Assets.... $ 1,614,814 $ 2,844,143 $ 754,099 $ 6,227,179
Shares issued and
outstanding....... 171,469 287,387 754,099 131,518
Net asset value per
share............. $ 9.42 $ 9.90 $ 1.00 $ 47.35
=========== =========== ========== ===========
</TABLE>
7
<PAGE>
EQUITRUST SERIES FUND, INC.
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED JANUARY 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
HIGH
VALUE GROWTH GRADE BOND
PORTFOLIO PORTFOLIO
------------ ----------
<S> <C> <C>
INVESTMENT INCOME
Dividends................ $ 621,739 $ 17,550
Interest................. 259,899 511,385
------------ ---------
Total Investment
Income.................. 881,638 528,935
EXPENSES
Paid to EquiTrust
Investment Management
Services, Inc.:
Investment advisory and
management fees....... 199,107 28,798
Transfer and dividend
disbursing agent
fees.................. 112,419 19,867
Distribution fees...... 186,393 32,105
Administrative service
fees.................. 93,196 16,053
Accounting fees........ 14,293 3,600
Custodian fees........... 13,722 3,588
Professional fees........ 22,639 4,108
Directors' fees and
expenses................ 1,048 186
Registration fees........ 8,367 5,654
Miscellaneous............ 17,857 2,739
------------ ---------
Total Expenses........... 669,041 116,698
Expense Reimbursement....
Fees paid indirectly..... (403) (436)
------------ ---------
Net Expenses............. 668,638 116,262
------------ ---------
Net Investment Income.... 213,000 412,673
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain (loss)
from investment
transactions............ (1,290,716) (16,171)
Change in unrealized
appreciation/depreciation
of investments.......... (9,960,364) (476,377)
------------ ---------
Net Gain (Loss) on
Investments............. (11,251,080) (492,548)
------------ ---------
Net Increase (Decrease)
in Net Assets Resulting
from Operations......... $(11,038,080) $ (79,875)
============ =========
</TABLE>
SEE ACCOMPANYING NOTES.
8
<PAGE>
<TABLE>
<CAPTION>
HIGH
YIELD BOND MANAGED MONEY MARKET BLUE CHIP
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends................ $ 52,103 $ 936,382 $ 414,681
Interest................. 529,573 406,834 $124,730 140,478
--------- ----------- -------- -----------
Total Investment
Income.................. 581,676 1,343,216 124,730 555,159
EXPENSES
Paid to EquiTrust
Investment Management
Services, Inc.:
Investment advisory and
management fees....... 35,837 117,335 5,753 80,823
Transfer and dividend
disbursing agent
fees.................. 24,108 73,480 6,780 86,362
Distribution fees...... 28,508 90,492 9,649 146,507
Administrative service
fees.................. 14,254 45,246 4,824 73,253
Accounting fees........ 3,258 9,778 1,151 14,542
Custodian fees........... 3,760 3,897 4,059 4,722
Professional fees........ 3,691 11,202 1,283 17,976
Directors' fees and
expenses................ 168 513 57 831
Registration fees........ 5,686 6,612 4,501 8,240
Miscellaneous............ 3,016 8,198 1,828 11,980
--------- ----------- -------- -----------
Total Expenses........... 122,286 366,753 39,885 445,236
Expense Reimbursement.... (929)
Fees paid indirectly..... (336) (412) (223) (434)
--------- ----------- -------- -----------
Net Expenses............. 121,950 366,341 38,733 444,802
--------- ----------- -------- -----------
Net Investment Income.... 459,726 976,875 85,997 110,357
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain (loss)
from investment
transactions............ (7,538) 22,942 2,102,068
Change in unrealized
appreciation/depreciation
of investments.......... (604,526) (2,217,357) (1,073,380)
--------- ----------- -------- -----------
Net Gain (Loss) on
Investments............. (612,064) (2,194,415) 1,028,688
--------- ----------- -------- -----------
Net Increase (Decrease)
in Net Assets Resulting
from Operations......... $(152,338) $(1,217,540) $ 85,997 $ 1,139,045
========= =========== ======== ===========
</TABLE>
9
<PAGE>
EQUITRUST SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
VALUE GROWTH
PORTFOLIO
--------------------------------
SIX MONTHS ENDED
JANUARY 31, 2000 YEAR ENDED
(UNAUDITED) JULY 31, 1999
---------------- --------------
<S> <C> <C>
OPERATIONS
Net investment income.... $ 213,000 $ 837,369
Net realized gain (loss)
from investment
transactions............ (1,290,716) (29,242,846)
Change in unrealized
appreciation/depreciation
of
investments............. (9,960,364) 21,062,739
------------ ------------
Net Increase (Decrease)
in Net Assets Resulting
from Operations......... (11,038,080) (7,342,738)
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS FROM
Net investment income:
Class A................ (404,083) (896,298)
Class I................ (49,796) (71,985)
Net realized gain from
investment transactions:
Class A................
Class I................
Distributions in excess
of net realized gain
from investment
transactions:
Class A................ (4,276,604)
Class I................ (248,105)
------------ ------------
Total Dividends and
Distributions........... (453,879) (5,492,992)
CAPITAL SHARE
TRANSACTIONS............ (5,628,526) 3,404,142
------------ ------------
Total Increase (Decrease)
in Net Assets........... (17,120,485) (9,431,588)
NET ASSETS
Beginning of period...... 88,301,033 97,732,621
------------ ------------
End of period (including
undistributed net
investment income as set
forth below)............ $ 71,180,548 $ 88,301,033
============ ============
Undistributed Net
Investment Income....... $ 41,911 $ 282,790
============ ============
</TABLE>
SEE ACCOMPANYING NOTES.
10
<PAGE>
<TABLE>
<CAPTION>
HIGH HIGH
GRADE BOND YIELD BOND
PORTFOLIO PORTFOLIO
-------------------------------- --------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
JANUARY 31, 2000 YEAR ENDED JANUARY 31, 2000 YEAR ENDED
(UNAUDITED) JULY 31, 1999 (UNAUDITED) JULY 31, 1999
---------------- -------------- ---------------- --------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income.... $ 412,673 $ 766,005 $ 459,726 $ 777,387
Net realized gain (loss)
from investment
transactions............ (16,171) 159,598 (7,538) (29,781)
Change in unrealized
appreciation/depreciation
of
investments............. (476,377) (790,290) (604,526) (625,744)
----------- ----------- ----------- -----------
Net Increase (Decrease)
in Net Assets Resulting
from Operations......... (79,875) 135,313 (152,338) 121,862
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS FROM
Net investment income:
Class A................ (364,700) (682,413) (397,923) (680,208)
Class I................ (47,973) (83,592) (61,803) (97,179)
Net realized gain from
investment transactions:
Class A................ (37,168) (74,415) (21,316)
Class I................ (4,640) (8,345) (2,821)
Distributions in excess
of net realized gain
from investment
transactions:
Class A................ (84,990)
Class I................ (11,235)
----------- ----------- ----------- -----------
Total Dividends and
Distributions........... (454,481) (848,765) (459,726) (897,749)
CAPITAL SHARE
TRANSACTIONS............ (390,450) 2,458,225 119,308 1,708,593
----------- ----------- ----------- -----------
Total Increase (Decrease)
in Net Assets........... (924,806) 1,744,773 (492,756) 932,706
NET ASSETS
Beginning of period...... 14,631,415 12,886,642 13,369,018 12,436,312
----------- ----------- ----------- -----------
End of period (including
undistributed net
investment income as set
forth below)............ $13,706,609 $14,631,415 $12,876,262 $13,369,018
=========== =========== =========== ===========
Undistributed Net
Investment Income....... $ 0 $ 0 $ 0 $ 0
=========== =========== =========== ===========
</TABLE>
11
<PAGE>
EQUITRUST SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MANAGED
PORTFOLIO
--------------------------------
SIX MONTHS ENDED
JANUARY 31, 2000 YEAR ENDED
(UNAUDITED) JULY 31, 1999
---------------- --------------
<S> <C> <C>
OPERATIONS
Net investment income.... $ 976,875 $ 1,836,141
Net realized gain (loss)
from investment
transactions............ 22,942 (6,463,959)
Change in unrealized
appreciation/depreciation
of investments.......... (2,217,357) 1,724,570
----------- -----------
Net Increase (Decrease)
in Net Assets Resulting
from Operations......... (1,217,540) (2,903,248)
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS FROM
Net investment income:
Class A................ (702,132) (1,708,510)
Class I................ (63,348) (127,401)
Net realized gain from
investment transactions:
Class A................
Class I................
Distributions in excess
of net realized gain
from investment
transactions:
Class A................ (1,863,050)
Class I................ (128,794)
----------- -----------
Total Dividends and
Distributions........... (765,480) (3,827,755)
CAPITAL SHARE
TRANSACTIONS............ (3,277,643) 1,310,015
----------- -----------
Total Increase (Decrease)
in Net Assets........... (5,260,663) (5,420,988)
NET ASSETS
Beginning of period...... 40,943,084 46,364,072
----------- -----------
End of period (including
undistributed
net investment income as
set forth below)........ $35,682,421 $40,943,084
=========== ===========
Undistributed Net
Investment Income....... $ 212,611 $ 1,216
=========== ===========
</TABLE>
SEE ACCOMPANYING NOTES.
12
<PAGE>
<TABLE>
<CAPTION>
MONEY MARKET BLUE CHIP
PORTFOLIO PORTFOLIO
-------------------------------- --------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
JANUARY 31, 2000 YEAR ENDED JANUARY 31, 2000 YEAR ENDED
(UNAUDITED) JULY 31, 1999 (UNAUDITED) JULY 31, 1999
---------------- -------------- ---------------- --------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income.... $ 85,997 $ 124,144 $ 110,357 $ 188,991
Net realized gain (loss)
from investment
transactions............ 2,102,068 (147,965)
Change in unrealized
appreciation/depreciation
of investments.......... (1,073,380) 7,509,719
---------- ---------- ----------- -----------
Net Increase (Decrease)
in Net Assets Resulting
from Operations......... 85,997 124,144 1,139,045 7,550,745
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS FROM
Net investment income:
Class A................ (71,474) (102,909) (139,451) (176,178)
Class I................ (14,523) (21,235) (48,724) (29,314)
Net realized gain from
investment transactions:
Class A................ (639,235) (52,637)
Class I................ (66,185) (4,819)
Distributions in excess
of net realized gain
from investment
transactions:
Class A................ (133,393)
Class I................ (12,080)
---------- ---------- ----------- -----------
Total Dividends and
Distributions........... (85,997) (124,144) (893,595) (408,421)
CAPITAL SHARE
TRANSACTIONS............ 619,712 1,001,217 5,662,767 6,473,226
---------- ---------- ----------- -----------
Total Increase (Decrease)
in Net Assets........... 619,712 1,001,217 5,908,217 13,615,550
NET ASSETS
Beginning of period...... 4,202,225 3,201,008 60,646,316 47,030,766
---------- ---------- ----------- -----------
End of period (including
undistributed
net investment income as
set forth below)........ $4,821,937 $4,202,225 $66,554,533 $60,646,316
========== ========== =========== ===========
Undistributed Net
Investment Income....... $ 0 $ 0 $ (2,834) $ 74,984
========== ========== =========== ===========
</TABLE>
13
<PAGE>
EQUITRUST SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
VALUE GROWTH PORTFOLIO
JANUARY 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
HELD VALUE
------------- ------------
<S> <C> <C>
COMMON STOCKS (85.44%)
- ---------------------------
AGRICULTURAL SERVICES (0.83%)
Rayonier, Inc.................................... 13,800 $ 593,400
APPAREL AND ACCESSORY STORES (1.18%)
Wolverine World Wide, Inc........................ 92,000 839,500
CHEMICALS AND ALLIED PRODUCTS (1.71%)
Avon Products, Inc............................... 15,000 477,187
RPM, Inc......................................... 72,000 738,000
-----------
1,215,187
COMMUNICATIONS (5.24%)
AT&T Corporation................................. 20,000 1,055,000
MCI Worldcom, Inc................................ 30,000(1) 1,378,125
SBC Communications............................... 30,000 1,293,750
-----------
3,726,875
DEPOSITORY INSTITUTIONS (1.79%)
Bank of America.................................. 6,175 299,102
Glacier Bancorp, Inc............................. 8,690 128,177
U. S. Bancorp.................................... 20,000 443,750
Wells Fargo Co., New............................. 10,000 400,000
-----------
1,271,029
EATING AND DRINKING PLACES (1.05%)
McDonald's Corporation........................... 20,000 743,750
ELECTRIC, GAS AND SANITARY SERVICES (1.18%)
Matrix Service Co................................ 139,700(1) 838,200
ELECTRONIC AND OTHER ELECTRICAL EQUIPMENT (2.07%)
ECI Telecom, Ltd................................. 20,000 540,000
National Services Industries..................... 37,400 930,325
-----------
1,470,325
FABRICATED METAL PRODUCTS (1.59%)
Gillette Company................................. 30,000 1,128,750
</TABLE>
14
<PAGE>
EQUITRUST SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
VALUE GROWTH PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>
SHARES
HELD VALUE
------------- ------------
FOOD AND KINDRED PRODUCTS (5.98%)
<S> <C> <C>
Coca-Cola Company................................ 10,000 $ 574,375
ConAgra, Inc..................................... 30,500 651,937
Hershey Foods.................................... 10,000 425,000
Interstate Bakers................................ 15,000 229,688
PepsiCo, Inc..................................... 20,000 682,500
Philip Morris Companies, Inc..................... 50,000 1,046,875
Sara Lee Corp.................................... 35,000 645,313
-----------
4,255,688
FOOD STORES (8.73%)
7-Eleven, Inc.................................... 1,016,600(1) 2,732,112
Albertson's, Inc................................. 15,000 459,375
Casey's General Store............................ 293,250 3,024,141
-----------
6,215,628
FURNITURE AND FIXTURES (0.84%)
Newell Rubbermaid, Inc........................... 20,000 600,000
GENERAL MERCHANDISE STORES (1.12%)
Harcourt General, Inc............................ 20,000 800,000
HEALTH SERVICES (9.39%)
Abbott Laboratories.............................. 40,000 1,305,000
Cardinal Health, Inc............................. 20,000 956,250
Johnson & Johnson................................ 30,000 2,581,875
Quorum Health Group, Inc......................... 100,000(1) 959,380
Schering-Plough Corp............................. 20,000 880,000
-----------
6,682,505
HOLDING AND OTHER INVESTMENT OFFICES (3.13%)
MBIA, Inc........................................ 30,000 1,501,875
Wintrust Financial Corp.......................... 47,750 722,219
-----------
2,224,094
INDUSTRIAL MACHINERY AND EQUIPMENT (1.32%)
Ingersoll-Rand Co................................ 20,000 941,250
INSTRUMENTS AND RELATED PRODUCTS (1.47%)
Becton Dickinson & Co............................ 40,000 1,047,500
</TABLE>
15
<PAGE>
EQUITRUST SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
VALUE GROWTH PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>
SHARES
HELD VALUE
------------- ------------
INSURANCE CARRIERS (7.50%)
<S> <C> <C>
Allstate Corp.................................... 24,000 $ 556,500
Chubb Corp....................................... 20,000 1,125,000
Jefferson Pilot Corp............................. 20,000 1,175,000
MONY Group, Inc.................................. 34,500 931,500
Progressive Corp................................. 10,000 622,500
Transatlantic Holdings, Inc...................... 6,350 476,250
United Fire & Casualty Co........................ 22,750 455,000
-----------
5,341,750
LUMBER AND WOOD PRODUCTS (0.63%)
Lowe's Companies................................. 10,000 446,250
MISCELLANEOUS MANUFACTURING INDUSTRIES (0.77%)
Emerson Electric................................. 10,000 550,625
MISCELLANEOUS RETAIL (1.45%)
Toys R Us, Inc................................... 100,000(1) 1,031,250
NONDEPOSITORY INSTITUTIONS (5.68%)
Berkshire Hathaway, Inc.......................... 30(1) 1,536,000
Federal Home Loan Mortgage Corp.................. 50,000 2,509,375
-----------
4,045,375
OIL AND GAS EXTRACTION (2.75%)
Burlington Resources, Inc........................ 20,000 641,250
Offshore Logistics............................... 70,000(1) 647,500
Pride International, Inc......................... 41,633(1) 668,730
-----------
1,957,480
PETROLEUM AND COAL PRODUCTS (1.17%)
Chevron Corporation.............................. 10,000 835,625
PRIMARY METAL INDUSTRIES (3.32%)
Northwest Pipe Company........................... 159,000(1) 2,365,125
PRINTING AND PUBLISHING (1.15%)
Belo A.H. Corp................................... 51,500 817,562
RUBBER AND MISCELLANEOUS PLASTICS (1.64%)
Illinois Tool Works.............................. 20,000 1,170,000
SERVICES (0.26%)
Service Corporation International................ 40,000 182,500
</TABLE>
16
<PAGE>
EQUITRUST SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
VALUE GROWTH PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>
SHARES
HELD VALUE
------------- ------------
TRANSPORTATION - BY AIR (2.52%)
<S> <C> <C>
Petroleum Helicopters, Inc. (Voting)............. 20,900 $ 240,350
Petroleum Helicopters, Inc. (Non-voting)......... 134,400 1,554,000
-----------
1,794,350
TRANSPORTATION EQUIPMENT (0.74%)
United Technologies Corp......................... 10,000 529,375
TRANSPORTATION SERVICES (0.81%)
GATX Corp........................................ 20,000 575,000
TRUCKING AND WAREHOUSING (2.56%)
Heartland Express, Inc........................... 89,020(1) 1,224,025
United Parcel Service - Class B.................. 10,000 595,000
-----------
1,819,025
WATER TRANSPORTATION (2.21%)
American Water Works, Inc........................ 65,000 1,576,250
WHOLESALE - NONDURABLE GOODS (1.66%)
Super Valu Stores, Inc........................... 40,000 720,000
Unilever N V..................................... 10,000 462,500
-----------
1,182,500
-----------
Total Common Stocks................................ 60,813,723
PREFERRED STOCKS (3.51%)
- -----------------------------
COMMUNICATIONS (0.12%)
Cellnet Funding, LLC............................. 29,000 82,470
HOLDING AND OTHER INVESTMENT OFFICES (2.12%)
General Growth Properties, Inc................... 73,240 1,510,575
OIL AND GAS EXTRACTION (1.27%)
Unocal Capital Trust............................. 20,000 907,500
-----------
Total Preferred Stocks............................. 2,500,545
</TABLE>
17
<PAGE>
EQUITRUST SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
VALUE GROWTH PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------- ------------
<S> <C> <C>
CORPORATE BONDS (13.05%)
- -----------------------------
CHEMICALS AND ALLIED PRODUCTS (1.76%)
Centocor, Inc., 4.75%, due 2/15/05............... $ 500,000 $ 1,250,720
HEALTH SERVICES (1.81%)
Athena Neurosciences, Inc., 4.75%, due
11/15/04........................................ 2,260,000 1,291,702
PRIMARY METAL INDUSTRIES (4.74%)
Quanex Corp., 6.88%, due 6/30/07................. 3,360,000 3,370,675
PRINTING AND PUBLISHING (4.74%)
Mail-Well, Inc., 5.00%, due 11/01/02............. 3,700,000 3,373,920
-----------
Total Corporate Bonds.............................. 9,287,017
<CAPTION>
SHARES
HELD
-------------
<S> <C> <C>
SHORT-TERM INVESTMENTS (0.30%)
- -----------------------------------
MONEY MARKET MUTUAL FUND
Provident Institutional Funds, T-Fund
Portfolio....................................... 216,343 216,343
-----------
Total Investments (102.30%)........................ 72,817,628
OTHER ASSETS LESS LIABILITIES (-2.30%)
- ------------------------------------------
Cash, receivables, prepaid expense and other
assets, less liabilities........................ (1,637,080)
-----------
Total Net Assets (100.00%)......................... $71,180,548
===========
</TABLE>
(1) Non-income producing securities.
SEE ACCOMPANYING NOTES.
18
<PAGE>
EQUITRUST SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
HIGH GRADE BOND PORTFOLIO
JANUARY 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
HELD VALUE
--------- -----------
<S> <C> <C>
PREFERRED STOCKS (5.40%)
- -----------------------------
New Plan Excel Realty Trust................................... 9,000 $ 394,875
Virginia Electric & Power..................................... 15,000 345,000
-----------
739,875
<CAPTION>
PRINCIPAL
AMOUNT
---------
<S> <C> <C>
CORPORATE BONDS (60.41%)
- -----------------------------
DEPOSITORY INSTITUTIONS (5.56%)
First Bank, N.A., 6.25%, due 8/15/05.......................... $450,000 437,013
J. P. Morgan & Co., 7.25%, due 10/01/10....................... 350,000 325,472
-----------
762,485
ELECTRIC, GAS AND SANITARY SERVICES (8.50%)
National Co-op Services Corp. (Arkansas Electric), 9.48%,
due 1/01/12.................................................. 537,000 557,288
Oglethorpe Power (OPC Scherer), 6.974%, due 6/30/11........... 645,000 607,132
-----------
1,164,420
GENERAL MERCHANDISE STORES (2.72%)
J.C. Penney & Co., 8.25%, due 8/15/22......................... 400,000 373,368
HOLDING AND OTHER INVESTMENT OFFICES (4.89%)
Meditrust, 7.60%, due 9/13/05................................. 350,000 264,555
Washington REIT, 6.898%, due 2/15/18.......................... 450,000 405,563
-----------
670,118
INDUSTRIAL MACHINERY AND EQUIPMENT (3.87%)
Thermo Fibertek, 4.50%, due 7/15/04........................... 650,000 530,088
NONDEPOSITORY INSTITUTIONS (3.47%)
Household Finance Co., 7.30%, due 7/30/12..................... 300,000 281,340
Security Capital Pacific, 7.20%, due 3/01/13.................. 225,000 194,769
-----------
476,109
OIL AND GAS EXTRACTION (1.61%)
Burlington Resources, Inc., 9.125%, due 10/01/21.............. 200,000 220,200
PAPER AND ALLIED PRODUCTS (1.95%)
Union Camp Corp., 8.625%, due 4/15/16......................... 257,000 266,725
PETROLEUM AND COAL PRODUCTS (3.55%)
Texaco Capital, Inc., 7.25%, due 1/10/10...................... 500,000 487,205
</TABLE>
19
<PAGE>
EQUITRUST SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
HIGH GRADE BOND PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----------
<S> <C> <C>
SECURITY AND COMMODITY BROKERS (2.53%)
Goldman Sachs Group, Inc., 7.80%, due 1/28/10................. $350,000 $ 346,780
TEXTILE MILL PRODUCTS (3.68%)
Unifi, 6.50%, due 2/01/08..................................... 550,000 505,126
TRANSPORTATION - BY AIR (11.42%)
Continental Airlines, Inc., 6.545%, due 8/02/20............... 699,700 618,878
Northwest Airlines, 7.575%, due 9/01/20....................... 700,000 653,107
US Air, Inc., 8.36%, due 1/20/19.............................. 300,000 292,785
-----------
1,564,770
TOBACCO PRODUCTS (5.02%)
UST, Inc., 7.25%, due 6/01/09................................. 750,000 688,650
TRANSPORTATION EQUIPMENT (1.64%)
Ford Motor Co., 9.215%, due 9/15/21........................... 200,000 224,656
-----------
Total Corporate Bonds........................................... 8,280,700
ASSET-BACKED SECURITIES (0.21%)
- ------------------------------------
Federal Home Loan Mortgage Corp., 10.15%, due 4/15/06......... 28,797 28,826
MORTGAGE-BACKED SECURITIES (27.67%)
- ------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) (0.19%)
Pool # 503442, 9.50%, due 7/01/05............................. 25,959 26,535
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
(GNMA) (27.48%)
Pool # 236070, 10.00%, due 10/15/12........................... 552,555 591,753
Pool # 1512, 7.50%, due 12/20/23.............................. 480,440 468,131
Pool # 22630, 6.50%, due 8/01/28.............................. 462,130 425,594
Pool # 2631, 7.00%, due 8/01/28............................... 502,240 476,656
Pool # 2658, 6.50%, due 10/01/28.............................. 927,550 854,218
Pool # 2701, 6.50%, due 1/20/29............................... 950,635 875,478
Pool # 144332, 9.00%, due 7/15/16............................. 10,201 10,670
Pool # 194692, 8.00%, due 5/15/17............................. 63,818 64,376
-----------
3,766,876
-----------
Total Mortgage-Backed Securities................................ 3,793,411
UNITED STATES TREASURY OBLIGATION (2.98%)
- ------------------------------------------------
U.S. Treasury Note, 7.25%, due 8/15/04........................ 400,000 407,904
</TABLE>
20
<PAGE>
EQUITRUST SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
HIGH GRADE BOND PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----------
<S> <C> <C>
SHORT-TERM INVESTMENTS (2.00%)
- -----------------------------------
UNITED STATES GOVERNMENT AGENCIES (1.64%)
Federal National Mortgage Association, due 2/24/00............ $225,000 $ 224,206
<CAPTION>
SHARES
HELD
---------
<S> <C> <C>
MONEY MARKET MUTUAL FUND (0.36%)
Provident Institutional Funds, T-Fund Portfolio............... 48,960 48,960
-----------
Total Short-Term Investments.................................... 273,166
-----------
Total Investments (98.67%)...................................... 13,523,882
OTHER ASSETS LESS LIABILITIES (1.33%)
- -----------------------------------------
Cash, receivables, prepaid expense and other assets, less
liabilities.................................................. 182,727
-----------
Total Net Assets (100.00%)...................................... $13,706,609
===========
</TABLE>
SEE ACCOMPANYING NOTES.
21
<PAGE>
EQUITRUST SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
HIGH YIELD BOND PORTFOLIO
January 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
SHARES
HELD VALUE
--------- -----------
<S> <C> <C>
COMMON STOCKS (0.57%)
- --------------------------
FOOD STORES
Penn Traffic Co............................................... 9,092(1) $ 73,873
PREFERRED STOCKS (8.36%)
- -----------------------------
DEPOSITORY INSTITUTIONS (1.94%)
CFB Capital I................................................. 11,000 250,250
HOLDING AND OTHER INVESTMENT OFFICES (2.39%)
New Plan Excel Realty Trust................................... 7,000 307,125
METAL MINING (4.03%)
Cameco Corp................................................... 24,000 519,000
-----------
Total Preferred Stocks.......................................... 1,076,375
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
---------
<S> <C> <C>
CORPORATE BONDS (83.71%)
- -----------------------------
AMUSEMENT AND RECREATION SERVICES (0.95%)
AMF Bowling Worldwide, Inc., 10.875%, due 3/15/06............. $260,000 122,200
APPAREL AND OTHER TEXTILE PRODUCTS (2.12%)
Dan River, Inc., 10.125%, due 12/15/03........................ 280,000 273,000
AUTO REPAIR, SERVICES AND PARKING (0.71%)
Budget Group, Inc., 9.125%, due 4/01/06....................... 100,000 91,500
BUSINESS SERVICES (2.31%)
Cendant Corporation, 7.75%, due 12/01/03...................... 300,000 297,234
CHEMICALS AND ALLIED PRODUCTS (5.92%)
Lyondell Chemical Co., 9.625%, due 5/01/07.................... 600,000 597,000
Terra Industries, Inc., 10.50%, due 6/15/05................... 200,000 165,000
-----------
762,000
COMMUNICATIONS (4.17%)
Savoy Pictures, 7.00%, due 7/01/03............................ 550,000 536,250
DEPOSITORY INSTITUTIONS (2.64%)
First Bank, N.A., 6.25%, due 8/15/05.......................... 350,000 339,899
</TABLE>
22
<PAGE>
EQUITRUST SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
HIGH YIELD BOND PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----------
<S> <C> <C>
ELECTRIC, GAS AND SANITARY SERVICES (12.14%)
Allied Waste North America, 10.00%, due 8/01/09............... $500,000 $ 437,500
ESI Tractebel, 7.99%, due 12/30/11............................ 460,000 404,035
Gulf States Utilities, 8.94%, due 1/01/22..................... 400,000 403,072
Waterford 3 Nuclear Power Plant, 8.09%, due 1/02/17........... 340,448 317,828
-----------
1,562,435
ELECTRONIC AND OTHER ELECTRIC EQUIPMENT (2.85%)
Advanced Micro Devices, Inc., 11.00%, due 8/01/03............. 360,000 367,200
FOOD STORES (0.32%)
Penn Traffic Co., 11.00%, due 6/29/09......................... 47,850 41,630
GENERAL MERCHANDISE STORES (3.86%)
Woolworth, F.W., 7.00%, due 6/01/00........................... 500,000 497,500
HEALTH SERVICES (2.84%)
Tenet Healthcare, 7.625%, due 6/01/08......................... 400,000 365,000
HOLDING AND OTHER INVESTMENT OFFICES (12.17%)
Bradley Operating, L.P., 7.20%, due 1/15/08................... 500,000 451,710
Federal Realty Investment Trust, 7.48%, due 8/15/26........... 600,000 550,042
Price Development Company, 7.29%, due 3/11/08................. 250,000 227,453
SUSA Partnership, L.P., 8.20%, due 6/01/17.................... 375,000 338,273
-----------
1,567,478
INDUSTRIAL MACHINERY AND EQUIPMENT (4.29%)
AGCO Corp., 8.5%, due 3/15/06................................. 600,000 552,000
INSTRUMENTS AND RELATED PRODUCTS (4.75%)
Thermo Electron Corp., 4.25%, due 1/01/03..................... 700,000 611,940
LUMBER AND WOOD PRODUCTS (3.48%)
Georgia-Pacific Corp., 9.875%, due 11/01/21................... 330,000 346,414
Georgia-Pacific Corp., 9.125%, due 7/01/22.................... 100,000 101,353
-----------
447,767
METAL MINING (1.51%)
Inco Ltd., 9.875%, due 6/15/19................................ 200,000 193,920
NONDEPOSITORY INSTITUTIONS (1.41%)
Macsaver Financial, 7.40%, due 2/15/02........................ 300,000 181,500
</TABLE>
23
<PAGE>
EQUITRUST SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
HIGH YIELD BOND PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----------
<S> <C> <C>
OIL AND GAS EXTRACTION (5.39%)
Occidental Petroleum Co., 7.375%, due 11/15/08................ $300,000 $ 288,333
Pool Energy Services, 8.625%, due 4/01/08..................... 400,000 406,000
-----------
694,333
PAPER AND ALLIED PRODUCTS (1.99%)
Container Corp. of America, 9.75%, due 4/01/03................ 250,000 256,875
REAL ESTATE (3.10%)
United Dominion Realty Trust, 8.125%, due 11/15/00............ 400,000 399,671
TRANSPORTATION SERVICES (1.82%)
Preston Corp., 7.00%, due 5/01/11............................. 306,000 234,090
WATER TRANSPORTATION (2.97%)
Windsor Petroleum Transportation, 7.84%, due 1/15/21.......... 500,000 382,500
-----------
Total Corporate Bonds......................................... 10,777,922
SHORT-TERM INVESTMENTS (6.03%)
- -----------------------------------
UNITED STATES GOVERNMENT AGENCIES (3.87%)
Federal National Mortgage Association, due 2/24/00............ 500,000 498,236
<CAPTION>
SHARES
HELD
---------
<S> <C> <C>
MONEY MARKET MUTUAL FUND (2.16%)
Provident Institutional Funds, T-Fund Portfolio............... 278,198 278,198
-----------
Total Short-Term Investments.................................. 776,434
-----------
Total Investments (98.67%).................................... 12,704,604
OTHER ASSETS LESS LIABILITIES (1.33%)
- -----------------------------------------
Cash, receivables, prepaid expense and other assets, less
liabilities.................................................. 171,658
-----------
Total Net Assets (100.00%).................................... $12,876,262
===========
</TABLE>
(1) Non-income producing securities.
SEE ACCOMPANYING NOTES.
24
<PAGE>
EQUITRUST SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
MANAGED PORTFOLIO
JANUARY 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
HELD VALUE
---------- -----------
<S> <C> <C>
COMMON STOCKS (8.29%)
- --------------------------
CHEMICALS AND ALLIED PRODUCTS (1.09%)
RPM, Inc...................................................... 38,000 $ 389,500
DEPOSITORY INSTITUTIONS (0.84%)
Bank of America............................................... 6,175 299,102
ELECTRIC, GAS AND SANITARY SERVICES (1.78%)
Northern States Power Co. (Minnesota)......................... 33,000 635,250
FOOD AND KINDRED PRODUCTS (4.58%)
ConAgra, Inc.................................................. 11,975 255,966
Philip Morris Companies, Inc.................................. 52,600 1,101,313
Sara Lee Corp................................................. 15,000 276,563
-----------
1,633,842
-----------
Total Common Stocks............................................. 2,957,694
PREFERRED STOCKS (50.28%)
- ------------------------------
DEPOSITORY INSTITUTIONS (8.03%)
CFB Capital I, Inc............................................ 37,500 853,125
Harris Preferred Capital Group, Inc........................... 10,150 209,344
Taylor Capital Group, Inc..................................... 72,000 1,804,500
-----------
2,866,969
EATING AND DRINKING PLACES (1.80%)
Wendy's Financing............................................. 14,300 643,500
ELECTRIC, GAS AND SANITARY SERVICES (5.20%)
Equitable Resources........................................... 50,000 1,012,500
Nisource, Inc................................................. 22,000 844,250
-----------
1,856,750
FOOD STORES (6.31%)
Suiza Capital Trust II........................................ 62,500 2,250,000
HOLDING AND OTHER INVESTMENT OFFICES (7.76%)
General Growth Properties, Inc................................ 90,000 1,856,250
Wintrust Capital Trust........................................ 37,500 911,718
-----------
2,767,968
NONDEPOSITORY INSTITUTIONS (4.08%)
Newell Financial Trust I...................................... 37,000 1,456,875
</TABLE>
25
<PAGE>
EQUITRUST SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
MANAGED PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>
SHARES
HELD VALUE
---------- -----------
<S> <C> <C>
OIL AND GAS EXTRACTION (8.99%)
EVI, Inc...................................................... 40,000 $ 1,615,000
El Paso Energy Capital Trust, Inc............................. 15,000 686,250
Unocal Capital Trust.......................................... 20,000 907,500
-----------
3,208,750
PETROLEUM AND COAL PRODUCTS (2.85%)
Canadian Occident Petroleum................................... 44,000 1,017,500
PIPELINES EXCLUDING NATURAL GAS (3.13%)
Enron Capital................................................. 47,200 1,115,100
RAILROAD TRANSPORTATION (0.45%)
Union Pacific Capital Trust................................... 4,000 159,000
WHOLESALE - NONDURABLE GOODS (1.68%)
Howell Corp................................................... 20,000 598,750
-----------
Total Preferred Stocks.......................................... 17,941,162
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
----------
<S> <C> <C>
CORPORATE BONDS (32.50%)
- -----------------------------
CHEMICALS AND ALLIED PRODUCTS (3.50%)
Centocor, Inc., 4.75%, due 2/15/05............................ $1,000,000 1,250,720
ELECTRIC, GAS AND SANITARY SERVICES (0.36%)
National Co-op Services Corp. (Arkansas Electric), 9.48%,
due 1/01/12.................................................. 123,000 127,647
HEALTH SERVICES (8.53%)
Athena Neurosciences, Inc., 4.75%, due 11/15/04............... 800,000 820,128
Dura Pharmaceuticals, 3.50%, due 7/15/02...................... 2,000,000 1,625,000
Healthsouth Corp., 3.25%, due 4/01/03......................... 750,000 597,771
-----------
3,042,899
METAL MINING (3.45%)
Teck Corp., 3.75%, due 7/15/06................................ 1,500,000 1,230,000
NONDEPOSITORY INSTITUTIONS (2.71%)
Consumer Portfolio Services, Inc., 10.50%, due 4/15/04........ 1,600,000 968,000
OIL AND GAS EXTRACTION (4.69%)
Diamond Offshore Drilling, 3.75%, due 2/15/07................. 1,700,000 1,674,432
</TABLE>
26
<PAGE>
EQUITRUST SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
MANAGED PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- -----------
<S> <C> <C>
PRIMARY METAL INDUSTRIES (4.53%)
Quanex Corp., 6.88%, due 6/30/07.............................. $1,730,000 $ 1,617,550
PRINTING AND PUBLISHING (4.73%)
Mail-Well, Inc., 5.00%, due 11/01/02.......................... 2,000,000 1,686,960
-----------
Total Corporate Bonds........................................... 11,598,208
<CAPTION>
SHARES
HELD
----------
<S> <C> <C>
SHORT-TERM INVESTMENTS (0.20%)
- -----------------------------------
MONEY MARKET MUTUAL FUND (0.20%)
Provident Institutional Funds, T-Fund Portfolio............... 71,307 71,307
-----------
Total Investments (91.27%)...................................... 32,568,371
OTHER ASSETS LESS LIABILITIES (8.73%)
- -----------------------------------------
Cash, receivables, prepaid expense and other assets, less
liabilities.................................................. 3,114,050
-----------
Total Net Assets (100.00%)...................................... $35,682,421
===========
</TABLE>
(1) Non-income producing securities.
SEE ACCOMPANYING NOTES.
27
<PAGE>
EQUITRUST SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
MONEY MARKET PORTFOLIO
January 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
ANNUALIZED
YIELD ON
PURCHASE PRINCIPAL
DATE AMOUNT VALUE
---------- --------- ----------
<S> <C> <C> <C>
SHORT-TERM INVESTMENTS (100.31%)
- --------------------------------------
COMMERCIAL PAPER (21.88%)
NONDEPOSITORY INSTITUTIONS
American General Finance Co., 5.54%, due 2/04/00............ 5.544% $175,000 $ 175,000
General Electric Capital Corp., 5.29%, due 2/14/00.......... 5.285 205,000 205,000
IBM Credit Corp., 5.46%, due 2/01/00........................ 5.460 205,000 205,000
Norwest Financial Corp., 5.46%, due 2/07/00................. 5.464 230,000 230,000
Texaco, Inc., 5.67%, due 2/17/00............................ 5.665 240,000 240,000
----------
Total Commercial Paper........................................ 1,055,000
UNITED STATES GOVERNMENT AGENCIES (78.43%)
Federal Home Loan Bank, due 2/18/00......................... 5.526 240,000 239,384
Federal Home Loan Bank, due 2/29/00......................... 5.733 330,000 328,555
Federal Home Loan Bank, due 3/08/00......................... 5.683 325,000 323,188
Federal Home Loan Bank, due 3/22/00......................... 5.757 275,000 272,848
Federal Home Loan Mortgage Corp., due 2/02/00............... 5.921 250,000 249,959
Federal Home Loan Mortgage Corp., due 2/08/00............... 5.824 385,000 384,570
Federal Home Loan Mortgage Corp., due 2/15/00............... 5.462 210,000 209,561
Federal Home Loan Mortgage Corp., due 2/22/00............... 5.642 250,000 249,191
Federal Home Loan Mortgage Corp., due 2/25/00............... 5.602 270,000 269,009
Federal Home Loan Mortgage Corp., due 3/14/00............... 5.669 215,000 213,607
Federal National Mortgage Assoc., due 2/03/00............... 5.859 165,000 164,947
Federal National Mortgage Assoc., due 2/09/00............... 5.867 290,000 289,629
Federal National Mortgage Assoc., due 2/24/00............... 5.636 200,000 199,292
Federal National Mortgage Assoc., due 3/03/00............... 5.691 200,000 199,038
Federal National Mortgage Assoc., due 3/09/00............... 5.733 190,000 188,902
----------
Total United States Government Agencies....................... 3,781,680
----------
Total Short-Term Investments.................................... 4,836,680
OTHER ASSETS LESS LIABILITIES (-0.31%)
- -------------------------------------------
Cash, receivables, prepaid expense and other assets, less
liabilities.................................................. (14,743)
----------
Total Net Assets (100.00%)...................................... $4,821,937
==========
</TABLE>
SEE ACCOMPANYING NOTES.
28
<PAGE>
EQUITRUST SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
BLUE CHIP PORTFOLIO
JANUARY 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
HELD VALUE
---------- -----------
<S> <C> <C>
COMMON STOCKS (90.03%)
- ---------------------------
CHEMICALS AND ALLIED PRODUCTS (10.63%)
Bristol-Myers Squibb Co....................................... 23,962 $ 1,581,492
DuPont (E.I.) de Nemours & Co................................. 17,212 1,015,508
Lilly (Eli) & Co.............................................. 9,088 607,760
Merck & Co., Inc.............................................. 21,223 1,672,638
Pfizer, Inc................................................... 19,093 694,508
Procter & Gamble Co........................................... 14,875 1,500,516
-----------
7,072,422
COMMUNICATIONS (8.67%)
AT & T Corp................................................... 23,232 1,225,488
Bell Atlantic Corp............................................ 20,144 1,247,669
CBS Corp...................................................... 29,678(1) 1,730,598
MCI Worldcom, Inc............................................. 16,882(1) 775,517
SBC Communications, Inc....................................... 18,325 790,265
-----------
5,769,537
COMPUTER PROGRAMMING AND SOFTWARE (2.64%)
America Online, Inc........................................... 12,216(1) 695,549
Microsoft Corp................................................ 10,850(1) 1,061,944
-----------
1,757,493
DEPOSITORY INSTITUTIONS (2.33%)
Bank of America............................................... 12,168 589,388
J. P. Morgan & Co., Inc....................................... 7,839 962,727
-----------
1,552,115
EATING AND DRINKING PLACES (1.98%)
McDonald's Corp............................................... 35,376 1,315,545
ELECTRONIC AND OTHER ELECTRIC EQUIPMENT (15.61%)
Cisco Systems, Inc............................................ 17,088(1) 1,871,136
Dell Computer Corp............................................ 18,795(1) 724,782
EMC Corp...................................................... 6,915(1) 736,448
General Electric Co........................................... 16,166 2,156,140
Intel Corporation............................................. 12,054 1,192,592
Lucent Technologies, Inc...................................... 28,487 1,573,907
Motorola, Inc................................................. 5,273 721,083
Sun Microsystems, Inc......................................... 9,278(1) 728,903
Texas Instruments, Inc........................................ 6,374 687,595
-----------
10,392,586
</TABLE>
29
<PAGE>
EQUITRUST SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
BLUE CHIP PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>
SHARES
HELD VALUE
---------- -----------
<S> <C> <C>
FOOD AND KINDRED PRODUCTS (3.91%)
Coca-Cola Co. (The)........................................... 20,500 $ 1,177,468
PepsiCo, Inc.................................................. 26,767 913,423
Philip Morris Companies, Inc.................................. 24,538 513,764
-----------
2,604,655
GENERAL MERCHANDISE STORES (3.70%)
Wal-Mart Stores, Inc.......................................... 44,948 2,460,903
HEALTH SERVICES (2.11%)
Johnson & Johnson............................................. 16,329 1,405,315
INDUSTRIAL MACHINERY AND EQUIPMENT (7.25%)
Caterpillar, Inc.............................................. 22,022 934,559
Hewlett-Packard Co............................................ 10,185 1,102,526
International Business Machines Corp.......................... 18,801 2,109,237
Oracle Corporation............................................ 13,575(1) 678,113
-----------
4,824,435
INSTRUMENTS AND RELATED PRODUCTS (1.08%)
Eastman Kodak Co.............................................. 11,652 720,968
INSURANCE CARRIERS (3.27%)
American International Group, Inc............................. 20,892 2,175,380
LUMBER AND WOOD PRODUCTS (1.09%)
Home Depot, Inc............................................... 12,859(1) 728,141
MOTION PICTURES (1.83%)
Disney (Walt) Co.............................................. 33,593 1,219,846
NONDEPOSITORY INSTITUTIONS (1.87%)
Citigroup, Inc................................................ 21,693 1,245,992
PAPER AND ALLIED PRODUCTS (2.71%)
International Paper Co........................................ 17,698 842,867
Minnesota Mining & Manufacturing Co........................... 10,271 961,622
-----------
1,804,489
PETROLEUM AND COAL PRODUCTS (3.97%)
Exxon Mobil Corp.............................................. 31,653 2,643,026
PRIMARY METAL INDUSTRIES (2.53%)
Alcoa, Inc.................................................... 24,119 1,680,793
PRINTING AND PUBLISHING (1.04%)
Time Warner, Inc.............................................. 8,623 689,301
SECURITY AND COMMODITY BROKERS (3.08%)
American Express Co........................................... 12,425 2,047,795
</TABLE>
30
<PAGE>
EQUITRUST SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
BLUE CHIP PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>
SHARES
HELD VALUE
---------- -----------
<S> <C> <C>
TRANSPORTATION EQUIPMENT (8.73%)
Boeing Co. (The).............................................. 19,412 $ 860,194
Ford Motor Co................................................. 22,170 1,102,957
General Motors Corp........................................... 14,727 1,184,603
Honeywell International, Inc.................................. 27,943 1,341,264
United Technologies Corp...................................... 24,889 1,317,561
-----------
5,806,579
-----------
Total Common Stocks............................................. 59,917,316
SHORT-TERM INVESTMENTS (10.01%)
- ------------------------------------
MONEY MARKET MUTUAL FUND (3.65%)
Provident Institutional Funds, T-Fund Portfolio............... 2,429,588 2,429,588
<CAPTION>
PRINCIPAL
AMOUNT
----------
<S> <C> <C>
UNITED STATES GOVERNMENT AGENCIES (6.36%)
Federal National Mortgage Association, due 2/02/00............ $1,000,000 999,848
Federal Home Loan Mortgage Corp., due 2/25/00................. 2,500,000 2,490,807
Federal Home Loan Mortgage Corp., due 3/14/00................. 750,000 745,136
-----------
4,235,791
-----------
Total Short-Term Investments.................................... 6,665,379
-----------
Total Investments (100.04%)..................................... 66,582,695
OTHER ASSETS LESS LIABILITIES (-0.04%)
- -------------------------------------------
Cash, receivables, prepaid expense and other assets, less
liabilities.................................................. (28,162)
-----------
Total Net Assets (100.00%)...................................... $66,554,533
===========
</TABLE>
(1) Non-income producing securities.
SEE ACCOMPANYING NOTES.
31
<PAGE>
EQUITRUST SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 2000
(UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
EquiTrust 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. 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).
Institutional shares ("Class I") are available for purchase exclusively by
the following investors: (a) retirement plans of FBL Financial Group, Inc. and
its affiliates; (b) investment advisory clients of EquiTrust Investment
Management Services, Inc. ("EquiTrust Investment"), including affiliated and
unaffiliated benefit plans, such as qualified retirement plans, and affiliated
and unaffiliated banks and insurance companies purchasing for their own
accounts; (c) employees and directors of FBL Financial Group, Inc., its
affiliates, and affiliated state Farm Bureau Federations; (d) directors and
trustees of the Fund and affiliated funds; and (e) such other types of accounts
as EquiTrust Investment, the Fund's distributor, deems appropriate. Class I
shares currently are available for purchase only from EquiTrust Investment.
Share certificates are not available for Class I or Class A shares.
Traditional shares ("Class A") are subject to a declining contingent
deferred sales charge ("CDSC") on shares redeemed within six years of purchase.
Class I shares are not subject to a CDSC. Class I shares do not bear any
distribution fee or administrative service fee. The shares of each Portfolio
have equal rights and privileges with all other shares of that Portfolio except
that Class A shares have separate and exclusive voting rights with respect to
the Fund's Rule 12b-1 Plan. Each share of a portfolio represents an equal
proportionate interest in that portfolio with each other share, subject to any
preferences (such as resulting from Rule 12b-1 distribution fees with respect to
the Class A shares). In addition, the Board of Directors of the Fund declares
separate dividends on each class of shares.
The Fund allocates daily all income, expenses (other than class-specific
expenses), and realized and unrealized gains or losses to each class of shares
based upon the relative proportion of the value of shares outstanding of each
class. Expenses specifically attributable to a particular class are charged
directly to such class. As noted previously, distribution fees and
administrative fees are only charged against Class A shares. Other
class-specific expenses charged to each class during the period ended January
31, 2000, which are included in the corresponding captions of the Statements of
Operations, were as follows:
<TABLE>
<CAPTION>
TRANSFER AND
DIVIDEND DISBURSING
AGENT FEES REGISTRATION FEES
------------------- ------------------
PORTFOLIO CLASS A CLASS I CLASS A CLASS I
- --------- --------- -------- -------- --------
<S> <C> <C> <C> <C>
Value Growth.................. $105,440 $6,979 $5,817 $2,550
High Grade Bond............... 16,612 3,255 3,158 2,496
High Yield Bond............... 20,800 3,308 3,188 2,498
Managed....................... 66,939 6,541 4,096 2,516
Money Market.................. 3,730 3,050 2,765 1,736
Blue Chip..................... 79,021 7,340 5,686 2,554
</TABLE>
32
<PAGE>
EQUITRUST SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
All portfolios, other than the Money Market Portfolio, value their common
and preferred stocks, corporate bonds, United States Treasury obligations and
mortgage-backed and asset-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 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 ex-dividend
date.
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 revenues and expenses during the
reporting period. Actual results could differ from those estimates.
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 January 31, 2000, the Value Growth and Managed Portfolios had net capital
loss carryforwards of approximately $30,534,000 and $6,441,000, respectively,
which will expire from 2007 through 2008.
3. MANAGEMENT CONTRACT AND TRANSACTIONS WITH AFFILIATES
The Fund has entered into agreements with EquiTrust Investment relating to
the management of the portfolios and the investment of their assets. Pursuant to
these agreements, fees paid to EquiTrust
33
<PAGE>
EQUITRUST SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. MANAGEMENT CONTRACT AND TRANSACTIONS WITH AFFILIATES (CONTINUED)
Investment are determined as follows: (1) annual investment advisory and
management fees, which are based on each portfolio's average 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 the average daily net asset
value attributable to Class A shares of each portfolio and, in part, are
subsequently remitted by EquiTrust Investment to retail dealers including
EquiTrust Marketing Services, LLC ("EquiTrust Marketing"), an affiliate who
serves as principal dealer; (3) administrative service fees, which are computed
at an annual rate of 0.25% of the average daily net asset value attributable to
Class A shares of each portfolio; (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; 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. EquiTrust Investment voluntarily waived the
minimum fee associated with the shareholder service, transfer and dividend
disbursing agent fees for both classes of shares, effective December 1, 1997
through December 31, 2000. There can be no assurance that EquiTrust Investment
will continue to waive this expense beyond December 31, 2000.
EquiTrust Investment has also agreed to reimburse the portfolios annually
for total expenses (excluding brokerage, interest, taxes, the distribution fee
and extraordinary expenses) in excess of 1.50% for "Class A" and "Class I"
shares, respectively, based on 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.
Certain officers and directors of the Fund are also officers of FBL
Financial Group, Inc., EquiTrust Investment, EquiTrust Marketing and other
affiliated entities. At January 31, 2000, Farm Bureau Life Insurance Company, a
wholly-owned subsidiary of FBL Financial Group, Inc., owned shares of the Fund's
portfolios as follows:
<TABLE>
<CAPTION>
PORTFOLIO CLASS A CLASS I
- --------- --------- --------
<S> <C> <C>
Value Growth............................ -- 154,703
High Grade Bond......................... -- 94,967
High Yield Bond......................... 75,129 95,057
Managed................................. -- 70,373
Money Market............................ 1,910,602 500,000
Blue Chip............................... -- 27,196
</TABLE>
EquiTrust Investment also owned 100,017 shares of Value Growth Portfolio
(Class A) at January 31, 2000.
34
<PAGE>
EQUITRUST SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. EXPENSE OFFSET ARRANGEMENTS
The Fund and other mutual funds managed by EquiTrust Investment have an
agreement with the custodian bank to indirectly pay a portion of the custodian's
fees through credits earned by the Funds' cash on deposit with the bank. This
deposit agreement is an alternative to overnight investments.
5. CAPITAL SHARE TRANSACTIONS
Net assets as of January 31, 2000 consisted of:
<TABLE>
<CAPTION>
PORTFOLIO
----------------------------------------------------------------------------
VALUE HIGH GRADE HIGH YIELD MONEY BLUE
GROWTH BOND 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)....... $ 8,570 $ 1,414 $ 1,367 $ 3,614 $ 4,822 $ 1,410
Additional paid-in
capital................. 113,207,616 14,466,825 13,906,002 46,345,352 4,817,115 42,616,462
Accumulated undistributed
net investment income... 41,911 212,611 (2,834)
Accumulated undistributed
net realized gain (loss)
from investment
transactions............ (30,533,562) (16,290) (103,763) (6,441,017) 1,248,683
Net unrealized
appreciation
(depreciation) of
investments............. (11,543,987) (745,340) (927,344) (4,438,139) 22,690,812
------------ ----------- ----------- ----------- ---------- -----------
Net Assets............... $ 71,180,548 $13,706,609 $12,876,262 $35,682,421 $4,821,937 $66,554,533
============ =========== =========== =========== ========== ===========
</TABLE>
35
<PAGE>
EQUITRUST SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
5. CAPITAL SHARE TRANSACTIONS (CONTINUED)
Transactions in Capital Stock for each portfolio were as follows:
PERIOD ENDED JANUARY 31, 2000:
<TABLE>
<CAPTION>
PORTFOLIO
---------------------------------------------------------------------------
VALUE HIGH GRADE HIGH YIELD MONEY BLUE
GROWTH BOND BOND MANAGED MARKET CHIP
----------- ----------- ----------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
Shares sold:
Class A................ 250,236 66,190 97,654 77,935 1,458,398 155,425
Class I................ 58,848 11,552 13,619 28,070 50,218 19,271
Shares issued in
reinvestment of
dividends and/or capital
gains distribution:
Class A................ 46,646 27,281 27,049 65,939 27,662 15,550
Class I................ 4,298 1,738 2,346 4,780 3,664 1,823
Shares redeemed:
Class A................ (973,324) (141,651) (117,953) (475,192) (885,261) (66,094)
Class I................ (37,614) (4,547) (10,159) (27,065) (34,969) (8,420)
----------- ----------- ----------- ----------- ---------- -----------
Net Increase
(Decrease).............. (650,910) (39,437) 12,556 (325,533) 619,712 117,555
=========== =========== =========== =========== ========== ===========
Value of shares sold:
Class A................ $ 2,197,727 $ 650,997 $ 930,389 $ 787,866 $1,458,397 $ 7,462,713
Class I................ 516,724 114,763 129,749 285,006 50,219 931,706
Value issued in
reinvestment of
dividends and/or capital
gains distribution:
Class A................ 393,055 270,672 257,420 656,778 27,662 768,796
Class I................ 36,316 17,257 22,326 47,687 3,664 90,400
Value redeemed:
Class A................ (8,443,764) (1,399,095) (1,124,270) (4,781,394) (885,261) (3,186,269)
Class I................ (328,584) (45,044) (96,306) (273,586) (34,969) (404,579)
----------- ----------- ----------- ----------- ---------- -----------
Net Increase
(Decrease).............. $(5,628,526) $ (390,450) $ 119,308 $(3,277,643) $ 619,712 $ 5,662,767
=========== =========== =========== =========== ========== ===========
</TABLE>
36
<PAGE>
EQUITRUST SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
5. CAPITAL SHARE TRANSACTIONS (CONTINUED)
YEAR ENDED JULY 31, 1999:
<TABLE>
<CAPTION>
PORTFOLIO
-----------------------------------------------------------------------------
VALUE HIGH GRADE HIGH YIELD MONEY BLUE
GROWTH BOND BOND MANAGED MARKET CHIP
------------ ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Shares sold:
Class A................ 1,093,340 334,499 278,716 411,574 2,379,910 301,869
Class I................ 136,043 21,652 29,023 61,989 275,807 42,315
Shares issued in
reinvestment of
dividends and/or capital
gains distribution:
Class A................ 572,232 55,948 58,350 317,600 41,669 8,453
Class I................ 24,347 2,805 3,959 17,659 5,547 797
Shares redeemed:
Class A................ (1,393,178) (177,704) (196,728) (660,841) (1,528,394) (188,360)
Class I................ (38,706) (3,696) (6,138) (25,818) (173,322) (11,583)
------------ ----------- ----------- ----------- ----------- -----------
Net Increase............. 394,078 233,504 167,182 122,163 1,001,217 153,491
============ =========== =========== =========== =========== ===========
Value of shares sold:
Class A................ $ 10,430,281 $3,508,582 $ 2,852,823 $ 4,477,308 $ 2,379,910 $12,875,650
Class I................ 1,225,133 225,669 287,297 671,578 275,807 1,817,166
Value issued in
reinvestment of
dividends and/or capital
gains distribution:
Class A................ 5,067,247 583,214 593,444 3,345,622 41,669 355,959
Class I................ 217,816 29,180 40,175 186,062 5,547 33,610
Value redeemed:
Class A................ (13,163,062) (1,849,459) (2,002,783) (7,091,136) (1,528,394) (8,095,048)
Class I................ (373,273) (38,961) (62,363) (279,419) (173,322) (514,111)
------------ ----------- ----------- ----------- ----------- -----------
Net Increase............. $ 3,404,142 $2,458,225 $ 1,708,593 $ 1,310,015 $ 1,001,217 $ 6,473,226
============ =========== =========== =========== =========== ===========
</TABLE>
37
<PAGE>
EQUITRUST SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
6. INVESTMENT TRANSACTIONS
For the period ended January 31, 2000, 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............................ $44,342,229 $46,962,899
High Grade Bond......................... 1,120,403 1,108,432
High Yield Bond......................... 402,500 668,912
Managed................................. 6,065,345 12,014,598
Blue Chip............................... 14,493,579 9,981,087
</TABLE>
At January 31, 2000, net unrealized appreciation (depreciation) 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....................... $ 1,065,933 $12,609,920 $(11,543,987)
High Grade Bond.................... 107,979 853,319 (745,340)
High Yield Bond.................... 33,241 960,585 (927,344)
Managed............................ 476,211 4,914,350 (4,438,139)
Blue Chip.......................... 23,333,218 642,406 22,690,812
</TABLE>
38
<PAGE>
EQUITRUST SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
7. 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:
ORDINARY INCOME:
<TABLE>
<CAPTION>
HIGH GRADE HIGH YIELD MONEY
BOND BOND MARKET
------------------ ------------------ ------------------
PAYABLE DATE CLASS A CLASS I CLASS A CLASS I CLASS A CLASS I
- ------------ -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
August 31, 1999.......... $0.0475 $0.0516 $0.0510 $0.0562 $0.0029 $0.0031
September 30, 1999....... 0.0522 0.0560 0.0643 0.0690 0.0029 0.0031
October 29, 1999......... 0.0428 0.0467 0.0503 0.0547 0.0028 0.0029
November 30, 1999........ 0.0465 0.0503 0.0525 0.0573 0.0032 0.0032
December 30, 1999........ 0.0508 0.0543 0.0640 0.0684 0.0033 0.0034
January 31, 2000......... 0.0449 0.0502 0.0537 0.0597 0.0035 0.0039
------- ------- ------- ------- ------- -------
Total Dividends per
Share................... $0.2847 $0.3091 $0.3358 $0.3653 $0.0186 $0.0196
======= ======= ======= ======= ======= =======
</TABLE>
In addition, dividends and distributions to shareholders from net investment
income and net realized gain on investment transactions were paid during the
period ended January 31, 2000, for the following portfolios:
ORDINARY INCOME DIVIDENDS:
<TABLE>
<CAPTION>
DIVIDEND AMOUNT
PER SHARE
DECLARATION RECORD PAYABLE ------------------
PORTFOLIO DATE DATE DATE CLASS A CLASS I
- --------- ----------- --------- --------- -------- --------
<S> <C> <C> <C> <C> <C>
Value Growth............. 12/28/99 12/28/99 12/29/99 $0.0494 $0.0871
Managed.................. 10/29/99 10/29/99 11/05/99 0.1284 0.1401
Managed.................. 12/28/99 12/28/99 12/29/99 0.0720 0.0824
Blue Chip................ 12/28/99 12/28/99 12/29/99 0.1132 0.3820
</TABLE>
CAPITAL GAINS DISTRIBUTIONS:
<TABLE>
<CAPTION>
DIVIDEND
AMOUNT
DECLARATION RECORD PAYABLE PER SHARE
PORTFOLIO DATE DATE DATE (BOTH CLASSES)
- --------- ----------- --------- --------- --------------
<S> <C> <C> <C> <C>
High Grade Bond............... 12/28/99 12/28/99 12/29/99 $0.0295
Blue Chip..................... 12/28/99 12/28/99 12/29/99 0.5189
</TABLE>
39
<PAGE>
EQUITRUST SERIES FUND, INC.
FINANCIAL HIGHLIGHTS
PERIOD ENDED JANUARY 31, 2000 (UNAUDITED) AND
YEARS ENDED JULY 31, 1999, 1998, 1997, 1996 AND 1995
<TABLE>
<CAPTION>
INCOME FROM INVESTMENT OPERATIONS
-------------------------------------
NET REALIZED
AND
NET ASSET UNREALIZED TOTAL
VALUE AT NET GAIN FROM
BEGINNING INVESTMENT (LOSS) ON INVESTMENT
OF PERIOD INCOME INVESTMENTS OPERATIONS
--------- ---------- ------------- ----------
<S> <C> <C> <C> <C>
Value Growth Portfolio
Class A:
2000................................ $ 9.57 $ 0.03 $ (1.25) $ (1.22)
1999................................ 11.07 0.09 (0.97) (0.88)
1998................................ 15.63 0.13 (2.26) (2.13)
1997................................ 14.68 0.18 2.89 3.07
1996................................ 13.04 0.27 2.10 2.37
1995................................ 13.07 0.43 0.65 1.08
Class I:
2000................................ $ 9.60 $ 0.06 $ (1.25) $ (1.19)
1999................................ 11.08 0.19 (1.01) (0.82)
1998................................ 16.16 0.19 (2.83) (2.64)
High Grade Bond Portfolio
Class A:
2000................................ $ 10.07 $ 0.28 $ (0.34) $ (0.06)
1999................................ 10.57 0.56 (0.44) 0.12
1998................................ 10.50 0.60 0.07 0.67
1997................................ 10.16 0.60 0.34 0.94
1996................................ 10.26 0.64 (0.10) 0.54
1995................................ 10.13 0.63 0.16 0.79
Class I:
2000................................ $ 10.07 $ 0.31 $ (0.34) $ (0.03)
1999................................ 10.57 0.60 (0.44) 0.16
1998................................ 10.53 0.42 0.04 0.46
High Yield Bond Portfolio
Class A:
2000................................ $ 9.87 $ 0.34 $ (0.45) $ (0.11)
1999................................ 10.48 0.60 (0.51) 0.09
1998................................ 10.48 0.65 0.07 0.72
1997................................ 9.99 0.70 0.61 1.31
1996................................ 10.03 0.75 (0.01) 0.74
1995................................ 10.00 0.78 0.13 0.91
Class I:
2000................................ $ 9.87 $ 0.37 $ (0.45) $ (0.08)
1999................................ 10.47 0.65 (0.50) 0.15
1998................................ 10.52 0.45 0.02 0.47
<CAPTION>
LESS DISTRIBUTIONS
---------------------------------------------------------------
DIVIDENDS
FROM NET DISTRIBUTIONS DISTRIBUTIONS
INVESTMENT FROM IN EXCESS OF TOTAL
INCOME CAPITAL GAINS NET REALIZED GAINS DISTRIBUTIONS
---------- -------------- -------------------- -------------
<S> <C> <C> <C> <C>
Value Growth Portfolio
Class A:
2000................................ $ (0.05) $ -- $ -- $ (0.05)
1999................................ (0.11) -- (0.51) (0.62)
1998................................ (0.17) (2.26) -- (2.43)
1997................................ (0.18) (1.94) -- (2.12)
1996................................ (0.46) (0.27) -- (0.73)
1995................................ (0.39) (0.72) -- (1.11)
Class I:
2000................................ $ (0.09) $ -- $ -- $ (0.09)
1999................................ (0.15) -- (0.51) (0.66)
1998................................ (0.18) (2.26) -- (2.44)
High Grade Bond Portfolio
Class A:
2000................................ $ (0.28) $ (0.03) $ -- $ (0.31)
1999................................ (0.56) (0.06) -- (0.62)
1998................................ (0.60) -- -- (0.60)
1997................................ (0.60) -- -- (0.60)
1996................................ (0.64) -- -- (0.64)
1995................................ (0.63) -- (0.03) (0.66)
Class I:
2000................................ $ (0.31) $ (0.03) $ -- $ (0.34)
1999................................ (0.60) (0.06) -- (0.66)
1998................................ (0.42) -- -- (0.42)
High Yield Bond Portfolio
Class A:
2000................................ $ (0.34) $ -- $ -- $ (0.34)
1999................................ (0.60) (0.02) (0.08) (0.70)
1998................................ (0.65) (0.07) -- (0.72)
1997................................ (0.70) (0.12) -- (0.82)
1996................................ (0.75) (0.03) -- (0.78)
1995................................ (0.78) (0.09) (0.01) (0.88)
Class I:
2000................................ $ (0.37) $ -- $ -- $ (0.37)
1999................................ (0.65) (0.02) (0.08) (0.75)
1998................................ (0.45) (0.07) -- (0.52)
</TABLE>
40
<PAGE>
<TABLE>
<CAPTION>
TOTAL
INVESTMENT
NET ASSET RETURN BASED
CAPITAL VALUE AT ON
CONTRIBUTION END NET ASSET
FROM AFFILIATE OF PERIOD VALUE (1)
--------------- ---------- -------------
<S> <C> <C> <C>
Value Growth Portfolio
Class A:
2000................................ $ -- $ 8.30 (12.76)%
1999................................ -- 9.57 (7.46)%
1998................................ -- 11.07 (16.37)%
1997................................ -- 15.63 21.83%
1996................................ -- 14.68 18.41%
1995................................ -- 13.04 9.36%
Class I:
2000................................ $ -- $ 8.32 (12.44)%
1999................................ -- 9.60 (6.83)%
1998................................ -- 11.08 (18.97)%(3)
High Grade Bond Portfolio
Class A:
2000................................ $ -- $ 9.70 (0.59)%
1999................................ -- 10.07 1.07%
1998................................ -- 10.57 6.53%
1997................................ -- 10.50 9.56%
1996................................ -- 10.16 5.37%
1995................................ -- 10.26 8.23%
Class I:
2000................................ $ -- $ 9.70 (0.35)%
1999................................ -- 10.07 1.47%
1998................................ -- 10.57 4.40%(3)
High Yield Bond Portfolio
Class A:
2000................................ $ -- $ 9.42 (1.14)%
1999................................ -- 9.87 0.87%
1998................................ -- 10.48 7.10%
1997................................ -- 10.48 13.29%
1996................................ -- 9.99 7.67%
1995................................ -- 10.03 9.71%
Class I:
2000................................ $ -- $ 9.42 (0.83)%
1999................................ -- 9.87 1.43%
1998................................ -- 10.47 4.62%(3)
<CAPTION>
RATIOS/SUPPLEMENTAL DATA
-----------------------------------------------------------------------------------
RATIO OF NET
RATIO OF RATIO OF NET INVESTMENT
NET ASSETS AT TOTAL EXPENSES TO EXPENSES TO INCOME TO PORTFOLIO
END OF PERIOD AVERAGE AVERAGE AVERAGE TURNOVER
(IN THOUSANDS) NET ASSETS (4) NET ASSETS (4) NET ASSETS (4) RATE (4)
--------------- ------------------- ---------------- ---------------- ---------
<S> <C> <C> <C> <C> <C>
Value Growth Portfolio
Class A:
2000................................ $ 66,288 1.73% 1.73% 0.49% 56%
1999................................ 82,902 1.74% 1.74% 0.92% 220%
1998................................ 92,848 1.60% 1.60% 0.87% 217%
1997................................ 112,985 1.65% 1.65% 1.18% 77%
1996................................ 86,534 1.62% 1.62% 1.87% 92%
1995................................ 70,947 1.62% 1.62% 3.43% 85%
Class I:
2000................................ $ 4,893 1.01% 1.00% 1.20% 56%
1999................................ 5,399 1.19% 1.18% 1.48% 220%
1998................................ 4,885 0.73%(3) 0.73%(3) 0.64%(3) 217%(3)
High Grade Bond Portfolio
Class A:
2000................................ $ 12,157 1.67% 1.67% 5.68% 10%
1999................................ 13,110 1.67% 1.66% 5.33% 29%
1998................................ 11,510 1.71% 1.71% 5.67% 38%
1997................................ 10,250 1.82% 1.82% 5.85% 30%
1996................................ 9,122 1.85% 1.85% 6.19% 34%
1995................................ 8,345 1.99% 1.99% 6.29% 18%
Class I:
2000................................ $ 1,550 1.20% 1.19% 6.16% 10%
1999................................ 1,521 1.26% 1.25% 5.74% 29%
1998................................ 1,376 0.95%(3) 0.95%(3) 3.89%(3) 38%(3)
High Yield Bond Portfolio
Class A:
2000................................ $ 11,261 1.95% 1.95% 6.98% 3%
1999................................ 11,734 1.95% 1.94% 5.93% 44%
1998................................ 10,982 1.97% 1.97% 6.17% 30%
1997................................ 9,156 2.10%(5) 2.00% 6.82% 45%
1996................................ 7,349 2.22%(5) 2.00% 7.44% 30%
1995................................ 6,691 2.29%(5) 2.00% 7.83% 23%
Class I:
2000................................ $ 1,615 1.34% 1.34% 7.59% 3%
1999................................ 1,635 1.50% 1.49% 6.38% 44%
1998................................ 1,454 1.05%(3) 1.05%(3) 4.26%(3) 30%(3)
</TABLE>
41
<PAGE>
EQUITRUST SERIES FUND, INC.
FINANCIAL HIGHLIGHTS (CONTINUED)
PERIOD ENDED JANUARY 31, 2000 (UNAUDITED) AND
YEARS ENDED JULY 31, 1999, 1998, 1997, 1996 AND 1995
<TABLE>
<CAPTION>
INCOME FROM INVESTMENT OPERATIONS
-------------------------------------
NET REALIZED
AND
NET ASSET UNREALIZED TOTAL
VALUE AT NET GAIN FROM
BEGINNING INVESTMENT (LOSS) ON INVESTMENT
OF PERIOD INCOME INVESTMENTS OPERATIONS
--------- ---------- ------------- ----------
<S> <C> <C> <C> <C>
Managed Portfolio
Class A:
2000................................ $ 10.39 $ 0.26 $ (0.58) $ (0.32)
1999................................ 12.15 0.47 (1.25) (0.78)
1998................................ 14.05 0.44 (1.00) (0.56)
1997................................ 13.33 0.48 1.91 2.39
1996................................ 11.85 0.46 1.54 2.00
1995................................ 11.62 0.56 0.47 1.03
Class I:
2000................................ $ 10.41 $ 0.28 $ (0.57) $ (0.29)
1999................................ 12.13 0.49 (1.21) (0.72)
1998................................ 14.21 0.34 (1.16) (0.82)
Money Market Portfolio
Class A:
2000................................ $ 1.00 $ 0.02 $ -- $ 0.02
1999................................ 1.00 0.03 -- 0.03
1998................................ 1.00 0.04 -- 0.04
1997................................ 1.00 0.03 -- 0.03
1996................................ 1.00 0.04 -- 0.04
1995................................ 1.00 0.04 -- 0.04
Class I:
2000................................ $ 1.00 $ 0.02 $ -- $ 0.02
1999................................ 1.00 0.03 -- 0.03
1998................................ 1.00 0.02 -- 0.02
Blue Chip Portfolio
Class A:
2000................................ $ 46.89 $ 0.06 $ 0.86 $ 0.92
1999................................ 41.27 0.13 5.82 5.95
1998................................ 37.20 0.18 4.08 4.26
1997................................ 26.26 0.16 11.22 11.38
1996................................ 22.85 0.17 3.43 3.60
1995................................ 18.75 0.19 4.05 4.24
Class I:
2000................................ $ 47.13 $ 0.23 $ 0.89 $ 1.12
1999................................ 41.37 0.38 5.84 6.22
1998................................ 36.77 0.29 4.51 4.80
<CAPTION>
LESS DISTRIBUTIONS
---------------------------------------------------------------
DIVIDENDS
FROM NET DISTRIBUTIONS DISTRIBUTIONS
INVESTMENT FROM IN EXCESS OF TOTAL
INCOME CAPITAL GAINS NET REALIZED GAINS DISTRIBUTIONS
---------- -------------- -------------------- -------------
<S> <C> <C> <C> <C>
Managed Portfolio
Class A:
2000................................ $ (0.20) $ -- $ -- $ (0.20)
1999................................ (0.47) -- (0.51) (0.98)
1998................................ (0.44) (0.90) -- (1.34)
1997................................ (0.46) (1.21) -- (1.67)
1996................................ (0.45) (0.10) -- (0.55)
1995................................ (0.56) (0.14) (0.10) (0.80)
Class I:
2000................................ $ (0.22) $ -- $ -- $ (0.22)
1999................................ (0.49) -- (0.51) (1.00)
1998................................ (0.36) (0.90) -- (1.26)
Money Market Portfolio
Class A:
2000................................ $ (0.02) $ -- $ -- $ (0.02)
1999................................ (0.03) -- -- (0.03)
1998................................ (0.04) -- -- (0.04)
1997................................ (0.03) -- -- (0.03)
1996................................ (0.04) -- -- (0.04)
1995................................ (0.04) -- -- (0.04)
Class I:
2000................................ $ (0.02) $ -- $ -- $ (0.02)
1999................................ (0.03) -- -- (0.03)
1998................................ (0.02) -- -- (0.02)
Blue Chip Portfolio
Class A:
2000................................ $ (0.11) $ (0.52) $ -- $ (0.63)
1999................................ (0.16) (0.05) (0.12) (0.33)
1998................................ (0.16) (0.03) -- (0.19)
1997................................ (0.14) (0.30) -- (0.44)
1996................................ (0.19) -- -- (0.19)
1995................................ (0.14) -- -- (0.14)
Class I:
2000................................ $ (0.38) $ (0.52) $ -- $ (0.90)
1999................................ (0.29) (0.05) (0.12) (0.46)
1998................................ (0.17) (0.03) -- (0.20)
</TABLE>
42
<PAGE>
<TABLE>
<CAPTION>
TOTAL
INVESTMENT
NET ASSET RETURN BASED
CAPITAL VALUE AT ON
CONTRIBUTION END NET ASSET
FROM AFFILIATE OF PERIOD VALUE (1)
--------------- ---------- -------------
<S> <C> <C> <C>
Managed Portfolio
Class A:
2000................................ $ -- $ 9.87 (3.08)%
1999................................ -- 10.39 (6.26)%
1998................................ -- 12.15 (4.54)%
1997................................ -- 14.05 17.88%
1996................................ 0.03(2) 13.33 17.30%(2)
1995................................ -- 11.85 9.40%
Class I:
2000................................ $ -- $ 9.90 (2.77)%
1999................................ -- 10.41 (5.75)%
1998................................ -- 12.13 (6.31)%(3)
Money Market Portfolio
Class A:
2000................................ $ -- $ 1.00 1.87%
1999................................ -- 1.00 3.19%
1998................................ -- 1.00 3.65%
1997................................ -- 1.00 3.51%
1996................................ -- 1.00 3.64%
1995................................ -- 1.00 3.60%
Class I:
2000................................ $ -- $ 1.00 1.99%
1999................................ -- 1.00 3.16%
1998................................ -- 1.00 2.47%(3)
Blue Chip Portfolio
Class A:
2000................................ $ -- $ 47.18 1.90%
1999................................ -- 46.89 14.51%
1998................................ -- 41.27 11.49%
1997................................ -- 37.20 43.77%
1996................................ -- 26.26 15.83%
1995................................ -- 22.85 22.77%
Class I:
2000................................ $ -- $ 47.35 2.29%
1999................................ -- 47.13 15.18%
1998................................ -- 41.37 13.14%(3)
<CAPTION>
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------------------------------------------
RATIO OF NET
RATIO OF RATIO OF NET INVESTMENT
NET ASSETS AT TOTAL EXPENSES TO EXPENSES TO INCOME TO PORTFOLIO
END OF PERIOD AVERAGE AVERAGE AVERAGE TURNOVER
(IN THOUSANDS) NET ASSETS (4) NET ASSETS (4) NET ASSETS (4) RATE (4)
-------------- ------------------- ---------------- ---------------- ---------
<S> <C> <C> <C> <C> <C>
Managed Portfolio
Class A:
2000................................ $ 32,838 1.92% 1.92% 4.95% 16%
1999................................ 38,012 1.95% 1.95% 4.30% 67%
1998................................ 43,602 1.83% 1.83% 3.33% 66%
1997................................ 40,994 1.95% 1.95% 3.48% 74%
1996................................ 27,470 1.91% 1.91% 3.47% 81%
1995................................ 21,105 1.94% 1.94% 4.86% 69%
Class I:
2000................................ $ 2,844 1.31% 1.31% 5.56% 16%
1999................................ 2,931 1.47% 1.47% 4.78% 67%
1998................................ 2,762 1.03%(3) 1.03%(3) 2.30%(3) 66%(3)
Money Market Portfolio
Class A:
2000................................ $ 4,068 1.73% 1.72% 3.70% 0%
1999................................ 3,467 1.91% 1.89% 3.13% 0%
1998................................ 2,574 1.95% 1.95% 3.57% 0%
1997................................ 2,466 2.28%(5) 2.00% 3.46% 0%
1996................................ 2,552 2.43%(5) 2.00% 3.58% 0%
1995................................ 2,439 2.20%(5) 2.00% 3.51% 0%
Class I:
2000................................ $ 754 1.76%(5) 1.50% 3.91% 0%
1999................................ 735 2.22%(5) 1.97% 3.07% 0%
1998................................ 627 1.29%(3) 1.29%(3) 2.37%(3) 0%(3)
Blue Chip Portfolio
Class A:
2000................................ $ 60,327 1.45% 1.45% 0.27% 17%
1999................................ 55,045 1.52% 1.52% 0.30% 7%
1998................................ 43,418 1.55% 1.55% 0.49% 3%
1997................................ 29,863 1.74% 1.74% 0.49% 0%
1996................................ 14,641 1.79% 1.79% 0.66% 3%
1995................................ 9,657 1.78% 1.78% 0.92% 1%
Class I:
2000................................ $ 6,227 0.70% 0.70% 1.02% 17%
1999................................ 5,601 0.94% 0.94% 0.88% 7%
1998................................ 3,613 0.76%(3) 0.76%(3) 0.51%(3) 3%(3)
</TABLE>
43
<PAGE>
EQUITRUST SERIES FUND, INC.
NOTES TO FINANCIAL HIGHLIGHTS
(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 and is not annualized for
periods less than one year. Contingent deferred sales charge is not
reflected in the calculation of total investment return.
(2) During the period ended July 31, 1996, EquiTrust 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. 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) Period from December 1, 1997 (date Class I operations commenced) through
July 31, 1998. Ratios presented have not been annualized.
(4) Computed on an annualized basis, unless otherwise indicated.
(5) Without the Manager's voluntary reimbursement of a portion of certain of
its expenses (see Note 3 to the financial statements) for the periods
indicated, the following funds would have had per share net investment
income as shown:
<TABLE>
<CAPTION>
PER SHARE
NET INVESTMENT AMOUNT
YEAR INCOME REIMBURSED
---- -------------- ----------
<S> <C> <C> <C>
HIGH YIELD BOND PORTFOLIO
Class A 1997 $0.69 $ 8,681
1996 0.73 15,361
1995 0.75 18,810
MONEY MARKET PORTFOLIO
Class A 1997 $0.03 $ 7,255
1996 0.03 10,718
1995 0.03 4,948
Class I 2000 $0.02 $ 929
1999 0.03 1,724
</TABLE>
44
